Jul 02, 2024 City Council

[A. CALL TO ORDER]

[00:00:27]

>> PLEASE RISE AND JOIN ME FOR THE PLEDGES AND A MOMENT OF SILENCE, PLEASE. I PLEDGE ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA, AND TO THE REPUBLIC FOR WHICH IT STANDS, ONE NATION UNDER GOD, INDIVISIBLE, WITH LIBERTY AND

JUSTICE FOR ALL. >> THANK YOU. AGAIN, WELCOME,

[1. Announcements/Reminders:]

>> WE DO HAVE A FEW ANNOUNCEMENTS AND REMINDERS FOR THIS EVENING. ALL NONEMERGENCY CITY OFFICES WILL BE CLOSED ON THURSDAY, JULY 4TH. OFFICES WILL REOPEN ON JULY 5TH. YARD WASTE SCHEDULED FOR THURSDAY WILL BE COLLECTED AS USUAL. THE PUBLIC LIBRARY WILL BE CLOSED ON JULY 4TH. THE SUMMER FUN FRIDAY WILL NOT OCCUR THIS FRIDAY. ADDITIONALLY, WE WANT TO INVITE THE RESIDENTS TO THE BICENTENNIAL FOURTH OF JULY BLAST OFF. STARTING WITH A 5K. I HOPE TO SEE EVERYONE OUT THERE FOR THAT. THERE WILL BE EVENTS THROUGHOUT THE DAY AT THE ZOO AND THE DUCK POND. AT 4:00 P.M. THAT WILL BEGIN THE FORMAL EVENT FOR THE EVENING WITH LIVE MUSIC AND FIREWORKS AT 9:00 P.M. TO SEE THE MAP AND SCHEDULE OF EVENTS, PLEASE VISIT THE WEBSITE. WE WANT TO REMIND THE PUBLIC THAT APPLICATIONS FOR THE FUNDS AWARDS FOR FISCAL YEAR 2025 WILL CLOSE ON JULY 31ST. INFORMATIONAL WORKSHOPS WILL BE HELD AT 700 MAIN CENTER ON MONDAY, JULY 8TH, 15TH, AND 22ND. APPLICATION FORMS AND MORE DETAILS, VISIT -- OR CONTACT THE VISITORS BUREAU AND ASK FOR JOEL. LASTLY, I KNOW THEY ARE GETTING QUITE A BIT OF COVERAGE ON HURRICANE -- AFTER IT ENTERS THE GULF OF MEXICO ON FRIDAY. WE CANNOT TELL THE DIRECT IMPACT ON TEXAS, WE NEED TO MAKE SURE THAT PREPAREDNESS PLANS ARE IN ORDER. ON SOCIAL MEDIA AND WE ALSO ENCOURAGE FOLKS TO VISIT THE CITY ALERT CENTER. YOU CAN SIGN UP BY CLICKING CITY ALERT THEN YOU CAN RECEIVE WEATHER ALERTS, ROAD CLOSURES AND NEWS RELEASES. RESIDENTS SHOULD SIGN UP FOR THE CODE RED NOTIFICATION SYSTEM. TEXT ALERT TO VICTORIA TO 99411. WE ARE MOVING ON, YOU HAVE A

[a. Parks and Recreation Month Proclamation. Duane Crocker, Mayor]

ME OUT? >> PARKS AND RECREATION IS AN INTEGRAL PART OF COMMUNITIES ACROSS THIS COUNTRY PROMOTING TIME SPENT IN NATURE WHICH INCREASES PUBLIC -- ALLEVIATING DEPRESSION AND ALZHEIMER'S. PARKS AND RECREATION ENCOURAGES PHYSICAL ACTIVITIES FOR PROVIDING SPACE FOR POPULAR SPORTS AND MANY OTHER ACTIVITIES TO PROMOTE A HEALTHY LIFESTYLE. IT INCREASES THE COMMUNITY'S ECONOMIC PROSPERITY THROUGH EXPANSION OF THE LOCAL TAX BASE, INCREASED STORE IS ON AND THE ATTRACTION OF BUSINESSES. THEY ENSURE THE

[00:05:12]

>> GOOD EVENING, MAYOR AND COUNCIL, FOR NEARLY 40 YEARS, THE ASSOCIATION HAS CELEBRATED THIS MONTH TO PROMOTE BUILDING STRONG AND VIBRANT AND RESILIENT COMMUNITIES THROUGH THE POWER OF PARKS AND RECREATION. THIS MONTH IS DEDICATED TO CELEBRATING MORE THAN 160,000 FULL-TIME PARKS AND RECREATION PROFESSIONALS ALONG WITH HUNDREDS OF THOUSANDS OF PART-TIME WORKERS, SEASONAL WORKERS, VOLUNTEERS, MANY OF WHO MAINTAIN THE LOCAL STATE AND COMMUNITY PARKS. THIS YEAR'S THEME IS WHERE YOU BELONG. CELEBRATING THE MANY WAYS WE FOSTER A SENSE OF BELONGING THE COMMUNITY BY WELCOMING INCLUSIVE PROGRAMS, ESSENTIAL SERVICES FOR ALL AGES AND ABILITIES AND SAFE AND ACCESSIBLE SPACES TO CREATE MEANINGFUL CONNECTIONS. THANK YOU SO MUCH FOR SUPPORTING OUR

[b. Keep Victoria Beautiful July Business Beautification Award. Christy Yo...]

PARKS. >> MOVING ON THEN, ITEM 2B IS

THE BEAUTIFICATION AWARD. >> GOOD EVENING, MAYOR AND COUNCIL, BEFORE WE GIVE THE AWARD AWAY TODAY, I WANT TO RE-EMPHASIZE WHAT MR. GARZA SAID, WE WILL BE RUNNING THE REGULAR ROUTES ON GARBAGE AND WASTE COLLECTION ON THE HOLIDAY ON JULY 4TH. SECONDLY, ON THAT NOTE, WE ARE WORKING TO GET THE WORD OUT ABOUT PROPER RECYCLING IN VICTORIA. ONE OF THE THINGS I WANT TO HIGHLIGHT IS WHAT WE DO RECYCLE IN THE GREEN RECYCLE BIN AND THAT IS CARDBOARD, PAPER, PLASTICS AND ALUMINUM AND TIN. AND WE DO NOT PUT PLASTIC BAGS IN THERE. EVEN THOUGH PLASTIC BAGS ARE TECHNICALLY RECYCLABLE, NOT IN OUR BINS, THEY GET STUCK IN THE MACHINERY. A LOT OF PEOPLE BAG THEIR RECYCLING IS THINKING THAT WILL HELP. JUST DUMP IT IN THERE ALL BY ITSELF. JUST A LITTLE TIP FOR EVERYBODY TODAY.

I WOULD LIKE TO BRING UP THE KEEP VICTORIA BEAUTIFUL BOARD

CHAIR TO PRESENT THE AWARD. >> GOOD EVENING, EVERYONE.

TONIGHT, OUR AWARD WINNER FOR JULY IS PUDDLE BACK GIBSON MOORE. THIS IS A CHEERFUL GEM OF A PLACE ON SOUTHBRIDGE STREET AND IT CERTAINLY IS DESERVING OF THE MONTHLY AWARD.

BACK IN 2015, NINA HAD DROPPED HER DAUGHTER OFF AT THE VICTORIA ART LEAGUE FOR A CLASS AND DROVE BY THE BUILDING WITH A FOR SALE SIGN. SHE HAD ALREADY HAD HER OWN BUSINESS FOR A NUMBER OF YEARS BY THEN. AND DECIDED TO PURSUE PURCHASING THIS BUILDING WHICH HAD BEEN BUILT IN 1910 AND HAD SERVED AS A HOME AND HAD SURVIVED FLOODS IN THE PAST.

SHE WAS ABLE TO PURCHASE THE BUILDING AND WENT TO WORK GIVING IT A HUGE FACELIFT WHILE RETAINING MANY OF THE ORIGINAL ELEMENTS. THE NEXT TIME YOU ARE DRIVING DOWN ON SOUTHBRIDGE APPROACHING THE ART LEAGUE AND WATER STREET DOWN THERE. TAKE A LOOK AT THIS. THE PROPERTY IS SUPER CUTE. VERY CHEERFUL, VERY BRIGHT. IT REALLY DRAWS YOU IN. TONIGHT, WE ARE HAPPY TO GIVE THIS AWARD TO NINA FROM PUDDLE BACK GIBSON MOORE.

[00:10:10]

>> I WANT TO SAY THANK YOU. I HAVE BEEN THERE FOR NINE YEARS, IF YOU HAVE BEEN BY, IF ANYBODY KNOWS WHERE LA PALOMA IS WE WILL BE OPENING OUR NEXT VENTURE WHICH IS A BRICK OVEN PIZZA. WE ARE KEEPING EVERYTHING DOWN THERE AND WE WILL BRING IT BACK ALIVE. I WOULD STAY LONGER, I HAVE A NEW HELPER AND THIS IS THEIR FIRST TIME BY THEMSELVES. I'M KIND OF NERVOUS. SHE IS ONLY 17 AND SHE HAS BEEN MANNING THE STORE FOR ABOUT 35 MINUTES ON THE PHONE IS OFF. OKAY, THANK YOU VERY MUCH, I HOPE TO SEE YOU ALL THERE. THANK YOU ALL.

>> SOMEBODY GET THE DOOR FOR HER. I UNDERSTAND THAT YOU MAY HAVE ANOTHER PUBLIC EMPLOYEE RECOGNITION FOR US?

>> YES, I WANT TO PUBLICLY RECOGNIZE ONE OF THE COURT CLERKS, WHERE ARE YOU? THANK YOU, PLEASE RISE. SERIOUSLY GOT HER BACHELOR'S DEGREE THROUGH THE UNIVERSITY OF PHOENIX AND GOT AN UNDERSTANDING OF THE CRIMINAL JUSTICE SYSTEM AND STUDIED CRIMINOLOGY AND CHANGE MANAGEMENT DEVELOPED ADMINISTRATIVE SKILLS AND BEGAN WORKING FOR US IN FEBRUARY OF 2023 AND IN THAT SHORT TIME HAS COMPLETED THE PROGRAM THROUGH THE DEPARTMENT OF -- PASSENGER SAFETY PROGRAM AND SHE HOLDS A LEVEL ONE CLERK CERTIFICATION IN CONJUNCTION WITH THE MUNICIPAL COURT EDUCATION CENTER. WE WANT TO PUBLICLY APPLAUD HER FOR HER INVESTMENT IN HER OWN PROFESSIONAL DEVELOPMENT AND WE WANT TO SAY THAT WE GREATLY APPRECIATE OUR EMPLOYEES INVESTING IN THEMSELVES. THANK YOU SO MUCH

[3. Items from Council:]

FOR THAT. >> ANY OTHER ITEMS?

>> NO SIR. >> NEXT I WILL MOVE ON TO THE ITEMS FROM COUNSEL. DOES ANYBODY HAVE ANYTHING?

>> I JUST HAVE ONE. I COULD'VE DONE THIS UNDER THE PROCLAMATION. A SHOUT OUT TO THE PARKS AND REC STAFF, YOU HAVE A BUSY WEEK, TO SAY THE LEAST. I'M VERY EXCITED ABOUT THE PLANS FOR THE FOURTH OF JULY HOLIDAY. HOPEFULLY EVERYONE CAN GET OUT AND CHECK IT OUT. THERE IS SOMETHING FOR EVERYONE ALL DAY INTO THE EVENING. THANK YOU FOR YOUR

[4. Citizen Communication:]

PEREZ. WELCOME , MS. PEREZ. >> HELLO, I AM A CITIZEN OF VICTORIA, TEXAS. THE PENSIONS OF LAW ENFORCEMENT, FIRE AND PUBLIC SAFETY WILL BE FACING DEDUCTIONS THAT VARY ACROSS THE BOARD DEPENDING ON THE INDIVIDUAL. I DO NOT SUPPORT THIS PROPOSAL FOR THREE REASONS. THE FIRST RESPONDERS AND PUBLIC SAFETY EMPLOYEES PLAY A VITAL ROLES IN OUR COMMUNITY. THESE INDIVIDUALS HAVE BUILT RELATIONSHIPS TO GAIN TRUST, OFFER PROTECTION, MAINTAIN ORDER, AND SERVE AS A PRESENCE OF PEACE AND HOPE TO OUR COMMUNITY. SECOND, THESE INDIVIDUALS SACRIFICE THEIR LIVES, THEIR TIME, THEIR HEART, AND THEIR MINDS IN AND OUT OF THEIR UNIFORMS AND WE SHOULD HONOR THEM. THIRD, LAW ENFORCEMENT, FIRE AND PUBLIC SAFETY EMPLOYEES REPRESENT WHAT VICTORIA, TEXAS IS ALL ABOUT.

LEADERSHIP AND INTEGRITY ARE AN EXAMPLE TO NEIGHBORING COUNTIES. I BELIEVE ALL OF THAT IS BEING TESTED AND IS TAKING AWAY FROM THE CURRENT PENSIONS GOING TO COME LOOKING THINGS AND MAKE MATTERS WORSE? THE DECISION TO PASS A DISRESPECTFUL APPROACH TO A LONG OVER ADJUSTMENT COMES WITH LITTLE CONSIDERATION FOR THESE MEN AND WOMEN. I DO NOT LIKE IT AND I DO NOT AGREE WITH IT AND I AM CONFIDENT IN SAYING THAT NEITHER WILL A LARGE POPULATION OF THE RESIDENCE IN VICTORIA.

THIS WILL ENCOURAGE LAW ENFORCEMENT, FIRE AND PUBLIC SAFETY TO PULL RETIREMENTS TO GO TO OTHER CITIES THE VALUE THEIR WORK AND OFFER BETTER PAY. ALLOWING SEASONED EMPLOYEES THE OPTION TO LEAVE BY BELIEVING THAT THEY CAN BE REPLACED IS A FOOLISH IDEA. I'M HERE TO REMIND YOU THAT TO BELIEVE THAT ANY OF THEM IS REPLACEABLE SPEAKS VOLUMES ABOUT THE MIND-SET OF OUR LEADERS , REGARDING THE HEROES

[00:15:06]

THANK YOU ALL FOR YOUR SERVICE AND YOUR TIME.

>> THANK YOU. KIM PICKENS. WELCOME BACK, MS. PICKENS .

>> GOOD TO BE HERE, THANK YOU. GOOD TO SEE YOU, MAYOR AND COUNCIL. FOR THOSE WHO DO NOT KNOW ME, I AM KNOWN BY KNOWING AND WEARING MANY HATS. I AM THE PRESIDENT OF THE HOMELESS COALITION WHERE I WOULD LIKE TO REMIND FOR THOSE WHO DO NOT KNOW THAT THE COALITION IS MADE UP OF ALL OF THE ORGANIZATIONS ACROSS VICTORIA AND THE COUNTIES THAT WE SURROUND OR SURROUND US, TO HELP PEOPLE THAT ARE HOMELESS WITH SERVICES AND THAT INCLUDES EVERYONE FROM MEDICOS TO TO COMMUNITY ACTION TO CHURCHES, LOCAL CHURCHES AND THINGS LIKE THAT. WE HAVE A FAR REACH, WE SURROUND AND WORK WITH PEOPLE ALL ACROSS. WHAT I WOULD LIKE TO SAY, WHILE THE CITY IS A PART OF OUR MEETINGS, IT IS THE CITY DEVELOPMENT DEPARTMENT AND WHAT WE WANT TO DO IS REACH ACROSS AND ACTUALLY COME UP WITH POLICIES AND PROCEDURES THAT WORK WITH ALL CITY DEPARTMENTS AND ALSO REACH OUT TO THE COUNTY. WE HAVE PEOPLE RIGHT NOW THAT WE KNOW ARE SUFFERING RIGHT NOW. I HAVE A PREGNANT MOTHER THAT I JUST VISITED AND GAVE HER A GIFT CARD SO SHE CAN GET SOMETHING TO EAT, SHE IS PREGNANT WITH TWINS AND SHE ASKED ME FOR A SLEEPING BAG, WE HAVE TO DO BETTER. WE WANT TO WORK WITH THE CITY, WE CAN DO THINGS WITHOUT YOU GUYS. THERE NEEDS TO BE A PARTNERSHIP, A REAL PARTNERSHIP WITH ALL ORGANIZATIONS. I SUGGEST THAT WE MEET ON THE LAST THURSDAY OF EACH MONTH. WE WILL BE BACK IN ACTION AT THE END OF JULY. IF ANY OF YOU INDIVIDUALLY WOULD LIKE TO MEET BECAUSE I REALIZE THAT OPEN MEETINGS CAN BE A LITTLE BIT DIFFICULT. IF YOU HAVE QUESTIONS INDIVIDUALLY, I AM MORE THAN HAPPY TO ANSWER QUESTIONS ON ME WITH PEOPLE ONE ON ONE. WE HAVE TO DO SOMETHING DIFFERENT. WE HAVE A LOT OF PEOPLE. NOT JUST WHO WE SEE PANHANDLING, WE HAVE PEOPLE ALL ACROSS THIS CITY THAT ARE HOMELESS AND SLEEPING IN CARS, SLEEPING IN CARS. THAT IS NOT HOW WE NEED TO HAVE OUR CITIZENS BE, WE NEED THEM TO THRIVE. I'M JUST ASKING FOR US ALL TO WORK TOGETHER. I

APPRECIATE YOUR TIME. >> THANK YOU. TRISH HASTINGS.

>> I FEEL LIKE I HAVE NOT BEEN HERE FOR A WHILE. I AM A COMMUNITY HEALTH WORKER AND A MEMBER OF THE HOMELESS COALITION. THERE IS ON THE 90 HELP WITH. I AM A YOUNG WOMAN, A VICTIM OF DOMESTIC VIOLENCE. SHE HAS DONE EVERYTHING RIGHT, SHE IS SOBER, SHE IS WORKING HARD TO BE PRODUCTIVE. THE SHELTER IS FULL. I TOOK HER TO MIDCOAST. THERE IS NO HOUSING AVAILABLE. WE HAVE APPLICATIONS IN. SHE DOES NOT HAVE ANYWHERE TO GO. NO FAMILY. I DON'T KNOW HOW TO ADVISER. I'M NOT

[00:20:03]

SOLUTIONS. I THINK YOU ALL. >> THANK YOU, MS. HASTINGS.

>> GOOD EVENING. >> GOOD EVENING. DUANE AND CITY COUNCIL. I HAVE A PROBLEM WITH HIGH GRASS. THERE IS A PROBLEM WITH HIGH GRASS BY QUEEN CITY PARK. 2307 CAMERA. THERE IS GRASS THAT IS SIX OR SEVEN INCHES HIGH. CODE ENFORCEMENT WROTE THEM UP AND I NEED TO STICK THE FIRE MARSHAL ON THEM.

THAT IS A FIRE HAZARD. IT IS ON 607 PARKS STREET. RIGHT BY QUEEN CITY PARK WHERE THEY JUST MOTIVE. ON 2307 CAMERON, THERE ARE A BUNCH OF COUCHES AND DEBRIS AND THAT HAS BEEN THERE FOR SEVERAL MONTHS. IS THERE ANYONE FROM SOLID WASTE DISPOSAL THAT CAN PICK IT UP, MAYBE THEY CAN AFFORD TO MOVE IN AND STUFF. I HAVE A LOT OF RUBBISH AND THEY PICK IT UP TWICE FREE PER YEAR. I JUST TALKED TO DARRELL AND IT GETS TAKEN CARE OF. SOMEBODY HAD SOME PLYWOOD AND SOME NAILS. I WANT TO THANK THE DIRECTOR OF PUBLIC WORKS FOR TAKING CARE OF IT. THEY GAVE FREE POPSICLES TO THE PEOPLE. I REALIZE THAT IS NOT ENOUGH. AT LEAST IT IS AN OLIVE BRANCH TO HELP. I WOULD LIKE PEOPLE TO START MOWING AND TAKING CARE OF EVERYTHING LIKE THEY ARE SUPPOSED TO. ALSO ON THE PARKS, THERE IS A CURFEW FROM 11:00 P.M. TO 6:00 A.M. AND IF YOU ARE ON THERE, YOU CAN GET ARRESTED OR TICKETED. A LOT OF PEOPLE DON'T KNOW THE RULES OR WHAT HAVE YOU. I WOULD LIKE SOMEONE TO TELL PEOPLE THE RULES. ALSO, IF YOU HAVE A TRESPASS WARRANT, THAT MEANS YOU CANNOT GO THERE FOR ONE YEAR. IF SOMEONE BONDS YOU OUT, YOU CANNOT GO BACK TO THE SAME PLACE OR YOU COULD GET ARRESTED. THE POLICE, I APPRECIATE WHAT THEY ARE DOING ENFORCING THE RULES MORE. I APPRECIATE EVERYTHING THAT

EVERYONE IS DONE. THANK YOU. >> THE LAST ONE I HAVE IS MR.

HARLEY FISK. >> GOOD EVENING, MAYOR AND INTERESTED CITIZENS. I AM ON SEVERAL ORGANIZATIONAL BOARDS.

THESE ARE PERSONAL OPINIONS AND THEY HAVE NOTHING TO DO WITH ANY OF THE BOARDS THAT I AM ON. MANY OF YOU MIGHT BE OLD ENOUGH TO REMEMBER THE ANDY GRIFFIN SHOW. TO THE BENEFIT OF THE YOUNGER PEOPLE THAT DID NOT EITHER SHOW GUYS MALL TOWN SHERIFF AND HIS DEPUTY. HE HAD A TENDENCY TO DRINK TOO MUCH.

HIS DRINKING PROBLEM WAS SO THEY SPENT MANY NIGHTS IN JAIL,

[00:25:04]

ASSOCIATED WITH HOMELESSNESS. >> THANK YOU, MR. FISK. THAT

[1. An ordinance amending Chapter 21, The Unified Development Ordinance, o...]

INTO ITEM C. >> AN ORDINANCE AMENDING CHAPTER 21, THE UNIFIED DEVELOPMENT ORDINANCE OF THE CITY OF VICTORIA COURT OF ORDINANCES.

>> GOOD EVENING, THIS IS GOING TO BE THE LAST TIME YOU'LL SEE ME FOR A WHILE ON THIS SUBJECT. AS YOU MAY REMEMBER, FEMA IS ADOPTING NEW MAPS IN JULY. AND THESE ARE THE PROPOSED CHANGES TO FEMA IN APRIL. NO NEWS IS GOOD NEWS, YOU THINK, RIGHT? THESE AMENDMENTS LAST TIME WERE APPROVED AND THEN TWO WEEKS AGO THEY SENT US AN EMAIL SAYING NO, WE HAVE MORE CHANGES. WE STARTED USING THE ORDINANCE FULL AFFECT AND WE HAVE CLARIFICATION ITEMS. THERE IS NO BIG LIST OF CHANGES TONIGHT, I WILL GO THROUGH THEM QUICKLY. THE FIRST, TO CLARIFY THAT THE RESIDENTIAL PARKING EXTENSIONS APPLIED TO PROPERTIES THAT DO NOT REQUIRE COMMERCIAL PARKING STANDARDS. THESE ARE EXCEPTIONS OR EASIER PARKING STANDARDS FOR RESIDENTIAL PARKING. SUCH AS SINGLE FAMILY CAN INCLUDE THREE FAMILY, FOR FAMILY, THINGS OF THAT NATURE. WE REALIZE THAT WE HAD A CONFLICT IN THE DRIVEWAY ORDINANCE. WE'VE INSTRUCTED THE CONSULTANT TO PULL THE EXISTING DRIVEWAY ORDINANCE BECAUSE THAT WORKED REALLY WELL. THEY HAD PROPOSED SOME CHANGES AND PROPOSED A SEPARATE DRIVEWAY ORDINANCE. WE HAD CONFLICTS BETWEEN THE ACCESS MANAGEMENT. WE ACTUALLY LIKED THE FORMATS THAT WERE IN TABLES EASY TO READ. THESE NEXT SECTIONS ARE JUST TO CLEAN THAT UP AND IT DOES NOT ACTUALLY CHANGE WHAT WE HAD IN OUR PREVIOUS ORDINANCE. JUST TO CLARIFY, THIS APPLIES TO ALL ROADWAYS. AND OF COURSE, REGULATIONS APPLY TO THE STATE MAINTAINED ROADWAYS. THESE WERE ALL SECTIONS THAT ALL WERE CAVEATS LOCATED ELSEWHERE. AND THAT WE COMPLETELY DELETED THE SECTIONS WHERE THEY WERE LISTED ELSEWHERE SO THAT WE DID NOT HAVE A CONFLICT. THIS IS THE ONE CHANGE THAT IS SUBSTANTIAL.

IT IS REDUCING THE LEG -- REGULATIONS. NOW THAT IT IS UNDER THE ZONING AUTHORITY, GIVING DIES, WE CAN PURSUE THE REPLACEMENT OF THAT LANDSCAPING THROUGH MUNICIPAL COURT. IF IT IS REQUIRED FOR THE DEVELOPMENT. THERE ARE SOME CASES WHERE IT REALLY COMES UP ANYTIME THERE IS INFRASTRUCTURE TYPE DEVELOPMENTS LIKE BOXES OR SUBSTATIONS WHERE THERE IS EXISTING TREES THAT THEY ARE USING AND THEY DON'T REALLY NEED IRRIGATION. THIS WOULD ALLOW US TO WAIVE THE

[00:30:05]

THE FLOOD INSURANCE STUDIES FOR THE ENTIRE COUNTY NOT JUST SPECIFICALLY IN THE CITY. IT IS A TITLE. THEY HAVE A NEW FORM THAT THEY WANTED US TO REFERENCE. AGAIN, THE NEW FORM.

AND THEN THEY ALSO WERE CONCERNED WE DID NOT INCLUDE ALL FOUNDATION TYPES. THE ONLY ONE I COULD THINK OF WAS BASEMENT. I DID NOT WANT TO WRITE THE BASEMENT FOUNDATION TYPES SO WE JUST PUT ANY OTHER FOUNDATION TYPES JUST TO SATISFY THEM. AND THEN THEY ASKED FOR THIS ADDITIONAL LANGUAGE. AND THOSE ARE ALL OF THE PROPOSED CHANGES.

>> ALL RIGHT, THANK YOU, ANY QUESTIONS? I THINK MOST OF THESE WERE DRIVEN BY FEMA, IN TERMS OF THEIR REVIEW. I THINK WE HAVE MOST OF THE CLEANUP, HOPEFULLY. WE KNEW IT WAS COMING. WE APPRECIATE THE WORK PUT INTO IT. ANY OTHER QUESTIONS? ALL RIGHT. I BELIEVE THAT THIS IS A PUBLIC HEARING SO I WILL OPEN THE PUBLIC HEARING ON ITEM C 1, IF ANYBODY WANTS TO SPEAK ON THIS, PLEASE COME TO THE MIC AND SEEING NO ONE, I WILL CLOSE THE PUBLIC HEARING. AND ENTERTAIN ANY

MOTIONS TO ADOPT? >> SECOND.

>> IS THERE ANY FURTHER DISCUSSION? SEEING NONE, ALL IN

[D. Consent Agenda:]

CONSENT AGENDA. >> ADOPTION OF MINUTES OF THE REGULAR MEETING HELD ON JUNE 18, 2024. APPROVE AN ANNUAL SUPPLY CONTRACT WITH THORNTON MUSSO & BELLEMIN INC. FOR TMB 1160 IN AN AMOUNT NOT TO EXCEED $278,622.72. APPROVE AN ANNUAL SUPPLY CONTRACT WITH THORNTON MUSSO & BELLEMIN INC. FOR TMB 471C IN AN AMOUNT NOT TO EXCEED $139,177.92. APPROVE THE RENEWAL OF AN ANNUAL SUPPLY CONTRACT WITH PENCCO, INC. FOR LIQUID FERROUS CHLORIDE IN AN AMOUNT NOT TO EXCEED $114,312.00. APPROVE THE RENEWAL OF AN ANNUAL SUPPLY CONTRACT WITH POLYDYNE, INC. FOR WASTEWATER SLUDGE DEWATERING POLYMER IN AN AMOUNT NO TO EXCEED $61,065.00.

>> THANK YOU, MS. HILBERT. MOVEMENT TO ACCEPT THE CONSENT

AGENDA AS READ. >> I WILL JUST MAKE THIS COMMENT, BEFORE WE VOTE, AFTER A MEETING WITH MR. GARZA EARLIER, WE ARE SEEING THE COST OF TREATING THE WATER OVER THE LAST SEVERAL YEARS. THE COST FOR US TO CLEAN IT IS SKYROCKETING THROUGH THE ROOF. YOU HAVE TO DO WHAT YOU HAVE TO DO. WE HAVE A MOTION AND A SECOND ON THE CONSENT AGENDA,

[1. Authorizing the City Manager or designee to purchase right-of-way for ...]

>> AUTHORIZING THE CITY MANAGER OR DESIGNEE TO PURCHASE RIGHT-OF-WAY FOR THE BRIGGS BLVD./SPRING CREEK BRIDGE

RECONSTRUCTION. >> MR. GIL, WELCOME.

>> THIS IS THE SPRING CREEK AND BRIGGS BOULEVARD RECONSTRUCTION. WE WILL GO OVER AN OVERVIEW OF IT AND HOW IT BEGAN AND FOLLOWING THAT, THE REST OF THE STORY. THE BRIDGE IS INSPECTED EVERY OTHER YEAR. THEY DO ABOUT HALF OF THE BRIDGES AND THE OTHER HALF AS A FEDERAL PROGRAM FOR THE COUNTIES AND THE CITIES IN OFF SYSTEM THEY INSPECT THEM AND

[00:35:03]

THE OFFICE SUBMITTED THE BRIDGE FOR THE OFF SYSTEM BRIDGE PROGRAM AND IT WAS ACCEPTED IN 2022. THE FIRST CONSTRUCTION ESTIMATE FOR THE BRIDGE WAS $2.4 MILLION. LATER REVISED TO 4.5 MILLION. PRICES HAVE GONE UP SINCE THEN. IN NOVEMBER WE PRESENTED A RESOLUTION TO PROCEED WITH THE PROJECT WITH A 10% MATCH OF THE CONSTRUCTION COST BASED OFF THE CONSTRUCTION ESTIMATE OF $2.4 MILLION. THE AMENDED -- THEN WE CAME BACK, TALKED TO THEIR GROUP AND THE FEDERAL GOVERNMENT SAID THAT WE WILL FUND THE WHOLE THING. WE GOT TO WAIVE THE 10% CONSTRUCTION MATCH WHICH WAS DONE FEBRUARY 6. WHAT ARE THE IMPROVEMENTS? HERE IS A SNAPSHOT OF THE AREA FOR THE RIGHT AWAY THAT IS NEEDED. IT STARTS AT THAT SECOND DRIVEWAY.

IT IS KIND OF A GRAVEL DRIVEWAY TO THE CITIZENS HEALTH PLEX.

THAT IS WHERE THE BRIDGE IMPROVEMENT STARTS. IT GOES ACROSS SPRING CREEK AND THEN IT GOES TO THE OLD PATTY WELDER HOUSE. WHAT ARE THE IMPROVEMENTS? THEY ARE RECONSTRUCTING THE ROAD FROM THAT POINT FROM THE DRIVEWAY TO DRIVEWAY. WIDENING THE BRIDGE, WIDENING THE ROAD A LITTLE BIT.

IT IS A LONGER STRUCTURE. WHAT WE FOUND UNDERNEATH THAT, THERE IS A SURE BRIDGE. AND THEN BACK IN THE DAY, PROBABLY IN THE 50S, THEY PUT RAILROAD TANKARDS IN. THAT WAS A GREAT OPTION BACK IN THE DAY THAT KEPT THE ENDS OFF OF THE TANK ENDS AND THAT IS THE CROSSING. THAT IS WHY IT IS SO LOW. BECAUSE IT IS A 96 INCH RAILROAD CAR AND OVER TOPS THREE OR FOUR TIMES A YEAR, AT LEAST. THIS IS THE CROSS-SECTION OF IT, IT IS A 24 FOOT WITH HERE. WHAT THEY PLAN ON DOING ON THE BRIDGE APPROACH IS A 12 FOOT LANE AND THEN A SHOULDER ON EITHER SIDE. THAT WILL IMPROVE THE SAFETY FOR THE TRAVELING PUBLIC AND ALLOW, IF WE EVER COME TO A POINT WHERE WE WIDEN THE ROAD AND PUT SOME SIDEWALKS, BICYCLE PATHS, IT WILL ALLOW THAT TO BE ON THE SIDE OF THE ROADWAY. THIS IS THE INTERESTING ONE, THE TOP SECTION IS THE RIGHT-OF-WAY THAT WE ARE WIRING. THE BOTTOM SHOWS YOU THAT THE ROADWAY, THE DASHED LINE IS THE EXISTING ELEVATION AND THE TOP LINE IS THE NEW ONE. THEY ARE RAISING THAT BRIDGE ABOUT EIGHT FEET. WHICH, WHEN YOU THINK ABOUT IT, THAT IS A LOT. THEY HAVE TO GET THAT ELEVATION SO THAT IT MATCHES. THEY ARE MATCHING THAT ELEVATION ALL THE WAY TO CITIZENS. THEY ARE RAISING IT UP TO MAKE SURE THAT THEY GET THE FLOW UNDER THE BRIDGE AND THEY DO NOT BACK ANY WATER UP ON SPRING CREEP BACK INTO WOODWAY, TROPICAL ACRES, ANYWHERE ELSE AND ALLOW THAT ROAD TO NOT FLOOD AGAIN. CITY OBLIGATIONS TO THE PROJECTS, ON ALL OF THE OFF SYSTEM BRIDGE IMPROVEMENTS, CITY OF VICTORIA, COUNTY, IT REQUIRES THE CITY TO PARTICIPATE IN THE CONSTRUCTION COST. EITHER WAY, THE CITY IS TO COORDINATE ALL UTILITY LOCATIONS AS NEEDED. OF COURSE, THE CITY AND WATER SANITARY SEWER, CENTERPOINT GAS, ANY OF THE UTILITIES, THAT IS ONE OF OUR THINGS, TO ORDINATE IT.

AFTER COURTNEY AND MAKE SURE THEY GET RELOCATED. OUR COST, THE CITY OBLIGATION IS THE RIGHT AWAY OUT LEGATION WHICH IS RIGHT BEFORE YOU TODAY. WE HAVE FOUR PROPERTIES ESTIMATED AT 48,000 TO ACQUIRE THE PROPERTIES AND DO SOME RELOCATIONS ON SOME OF THEM AND RECORDING FEES. TO RELOCATE

[00:40:02]

THE RIGHT AWAY. >> WE JUST WANTED TO GIVE YOU A

[00:45:02]

PROJECT OVERVIEW. >> 10 MONTHS, IS THAT A RATHER

AGGRESSIVE SCHEDULE? >> IT IS. I ASKED THEM ABOUT IT AND THEY SAID WHEN THESE CONTRACTORS COME IN TO DO BRIDGES, GET OUT OF THE WAY, THEY ARE CONFIDENT ABOUT THAT.

I WILL SAY THIS, IF THEY LOOK AT THE IMPROVEMENTS THAT HUNTER PAVING IS DOING ON THE LOOP AND YOU LOOK AT THOSE BRIDGES GOING UP, IT IS AMAZING HOW FAST THEY GET THOSE THINGS UP. THEY ARE

CONFIDENT ON 10 MONTH. >> IT HELPS THAT TRAFFIC WILL

BE COMPLETELY SHUT OUT? >> ONE OTHER QUESTION ABOUT THE DRAINAGE OF SPRING CREEK, THIS BRIDGE WILL NOT CHANGE THE AMOUNT OF WATER. WILL IT CHANGE HOW QUICKLY THAT WATER PASSES THROUGH THERE? I AM CONCERNED ABOUT DOWNSTREAM. WE HAVE HAD

SOME BACKUP ISSUES ALONG THERE. >> THEY DID THE STUDY. THEY DID A DRAINAGE HYDRAULIC STUDY. THEIR BIGGEST CONCERN IS THAT THEY DID NOT WANT TO BACKWATER UP AND CAUSE FLOODING DOWNSTREAM. THERE IS STILL CONTROL STRUCTURE AT THE LOOP.

IT IS PASSING WHETHER IT GOES OVER THE BRIDGE OR UNDER THE BRIDGE. THEY DID NOT WANT TO BACK IT UP OR HAVE IT OVER THE TOP OF THE BRIDGE. THAT WAS A BIG CONCERN.

>> LET'S MAKE SURE WE ARE NOT CREATING ANYTHING DOWNSTREAM

THERE. >> BRIGGS CURRENTLY IS OPEN DRAINAGE ON BOTH SIDES? IF THERE IS ANYTHING BEFORE OR AFTER THE BRIDGE WILL THAT CHANGE ANYTHING?

>> THEY WILL BE DOING SOME OF THAT WORK ON THE SIDE. THE EXTRA RIGHT-OF-WAY IS NEEDED TO SURE UP THAT ROADWAY. THERE ARE SOME EROSION SPOTS AROUND CITIZENS AND THAT WILL SHORED

UP AS PART OF THE DESIGN. >> WILL NOT BE CLOSED?

>> NO. IT WILL STILL BE OPEN SECTIONS.

>> I HAVE A QUESTION.

WHAT MAYOR CROCKER SAID ABOUT THE 10 MONTHS, THAT IS DURING THE VERY ACTIVE HURRICANE SEASON WHEN YOU'RE LOOKING AT SEPTEMBER, AUGUST, RIGHT IN THERE. WOULD THAT IMPACT THE 10 MONTH? HAS THAT BEEN TAKEN INTO CONSIDERATION?

>> YES. TXDOT USUALLY DOES THE WORKING DAY CONTRACT, THEY ARE LOOKING AT 10 MONTHS WORKING DAY. THE BRAIN DOES AFFECT IT, YES, THAT COULD EXTEND THE TIME.

>> THE SECOND QUESTION I HAD, CAN YOU OVER THE COST. IS THAT HER PROPERTY WE ARE LOOKING AT?

>> ALL FOUR PROPERTIES. YES. WE HAVE BEGAN NEGOTIATIONS AND WE HAVE TALKED TO ALL OF THE PROPERTY OWNERS.

>> ANY OTHER QUESTIONS? ALL RIGHT, THANK YOU MR. GILL, WE APPRECIATE THE INFORMATION AS ALWAYS.

>> I WILL ENTERTAIN ANY MOTIONS IN VERSE BACKED TO E1. ANY FURTHER DISCUSSION? ALL IN FAVOR, SIGNIFY BY SAYING AYE,

[1. Child Safety Program and Proposed FY 2025 Program. Tiffany Totah, Muni...]

>> THE FIRST IS THE UPDATE ON THE CHILD SAFETY PROGRAM AND TIFFANY WILL TAKE THE LEAD ON THIS ITEM.

>> GOOD EVENING MAYOR AND COUNCIL. I HAVE THE PLEASURE OF GOING OVER THE CHILD SAFETY PROGRAM WHICH COVERS TWO COMPONENTS. THE CHILD PASSENGER SAFETY PROGRAM. JUST SOME BACKGROUND INFORMATION TO GO OVER THE TIMELINE OF HOW THIS PROGRAM DEVELOPS FOR SOME NEWER COUNCILMEMBERS, BACK IN AUGUST OF 2019, COUNCIL SUPPORTED A RESOLUTION AUTHORIZING THE COUNTY TO ADOPT A FEE ON VEHICLE REGISTRATION AND THAT FEE AT THE TIME WAS ONE DOLLAR THAT WAS ADDED TO VEHICLE REGISTRATION IN THE CITY GETS A PORTION OF THAT FUNDING THAT SUPPORTS THIS PROGRAM. IN JANUARY OF 2020, THAT IS WHEN THE CITY BEGAN RECEIVING THEM FUNDING AND THE CITY WAS ASSESSING THE FEE ON VEHICLE REGISTRATIONS. THEY OPTED TO INCREASE IT AND THAT IS WHEN HE MOVED UP TO A DOLLAR $.50. AND THAT FUND HAS A VERY SPECIFIC PURPOSE AND IT CAN ONLY BE USED FOR CERTAIN TYPES OF USES. ONE OF THEM IS THE SCHOOL CROSSING GUARD PROGRAM IF THE MUNICIPALITY OPERATED THAT IN OUR CITY DID NOT. THAT IS WHY WE EXPLORED VARIOUS OPTIONS AND

[00:50:07]

TRAFFIC CONTROL AND THINGS OF THOSE SORTS. USERS ON THE GRANT COMMITTEE AS WELL. THE GRANT AND AWARD REQUIREMENTS, GRANTS WILL OPEN IN JULY. AT THE END OF THIS MONTH, THEY WILL OPEN.

THERE ARE FOUR COMPONENTS THAT ARE PART OF THE GRANT APPLICATION. ORGANIZATION ELIGIBILITY, THESE ARE THINGS THAT WERE DISCUSSED WITH CITY COUNCIL DID TERM AND WHAT THAT WOULD LOOK LIKE. THEY DO HAVE TO BE NONPROFIT ORGANIZATIONS THAT OPERATE WITHIN THE CITY OF VICTORIA LIMITS. BUT NOT NECESSARILY EXCLUSIVELY. WE HAVE ORGANIZATIONS THAT MAY SERVE A GREATER AREA. WE ARE LOOKING SPECIFICALLY AT WHAT THEY SERVE WITHIN THE CITY LIMITS. THE OPERATION CANNOT BE OUTSIDE THE CITY LIMITS FOR THE PHYSICAL FACILITY. THEY HAVE TO BE PART OF THE ELIGIBLE USE CATEGORY. THE TWO CATEGORIES ARE FOCUSED ON CHILD SAFETY SERVICES AND DRUG AND ALCOHOL USE PREVENTION SERVICES. AS PART OF THE APPLICATION PROCESS, THEY DO HAVE TO FILL OUT TWO FORMS THAT ARE PROVIDED BY THE CITY. WE HAVE A FINANCIAL FORM THAT IS A BUDGET FORM AS WELL AS A CHILD SAFETY APPLICATION AND THEY WILL BE MADE AVAILABLE ON THE WEBSITE THAT YOU SEE POSTED THERE AT THE BOTTOM OF THE SCREEN THERE. THAT IS WHERE THE APPLICATIONS WILL BE MADE AVAILABLE WHEN THE APPLICATIONS OPEN. THEY DO NEED TO SUPPLY THE IRS 990 FORM AND THIS IS A BENEFICIAL TOOL FOR US TO EVALUATE THE ORGANIZATION AND BE ABLE TO GET IMPORTANT DATA FOR EVALUATING THAT AND THE TAX EXEMPTION DESIGNATION LETTER. WE LOOK AT OBJECTIVE DATA. DID THEY ATTEND ONE OF OUR WORKSHOPS? WE OFFER APPLICANT WORKSHOPS IN A HYBRID ENVIRONMENT. WE HOST THEM HERE IN THE CHAMBERS. DID THEY COMPLY WITH ALL OF THE DOCUMENT REQUIREMENTS? IS THE DOCUMENTATION CREDIBLE AND TRANSPARENT? WE LOOK AT THE NUMBER OF SERVICES THEY ARE PROVIDING AND THE NUMBER OF CHILDREN SERVED. SOMETIMES IT IS A 1-1 RATIO. WE HAVE A VARIETY OF DIFFERENT ORGANIZATIONS THAT APPLIED FOR FUNDING. SOME APPLICANTS HAVE PROVIDED MULTIPLE COUNSELING SERVICES FOR ONE CHILD. THEY ARE PROVIDED DRUG AND ALCOHOL USE SERVICES AND THE BOYS AND GIRLS CLUB THAT HAVE PROVIDED THE ONE-ON-ONE SERVICE. THOSE ARE THE APPLICANTS WE HAVE HAD IN THE PRIOR APPLICANT AND CURRENT AWARDS. WE ALSO LOOK NOW THAT THIS HAS BEEN ESTABLISHED, DID THEY USE THE CURRENT OR PRIOR FUND. WE WANT TO MAKE SURE THAT THEY ARE

[00:55:05]

THROUGH TWO QUARTERS. WE ARE INTO THE THIRD QUARTER NOW.

THAT IS BASED ON THE CITY FISCAL YEAR. THEY HAVE UNTIL THE 22ND TO SUBMIT ANY DOCUMENTATION THEY WOULD LIKE TO REQUEST REIMBURSEMENT FOR THIS PAST QUARTER. CURRENTLY, WE HAVE HAD THREE OF THE SEVEN APPLICANTS THAT HAVE SUBMITTED FULL OR PARTIAL REIMBURSEMENT. OF THE ONES THAT HAVE BEEN REIMBURSED, $10,000 HAVE BEEN ALLOCATED TO THOSE. THE TOTAL BUDGET FOR LAST YEAR WAS $50,000. OF THOSE THAT ARE REPORTING, THESE ARE THE THREE THAT HAVE SUBMITTED OR PARTIAL WORK WEST. 3000 UNITS OF SERVICES PROVIDED TO 20,000 CHILDREN. 300 VOLUNTEER HOURS FOR THESE ORGANIZATIONS AND THEY HAVE UNTIL THE END OF THE FISCAL YEAR TO SUBMIT FOR THE FULL REIMBURSEMENT. THEY HAVE TWO QUARTERS TO GET DOCUMENTATION TO US. WE HAVE HAD SUCCESS EACH YEAR.

APPLICANTS COME TO 100% REIMBURSEMENT. I ENJOY BEING ABLE TO WORK WITH GRANT PARTNERS AND GET THAT PROCESS.

ANOTHER BIG COMPONENT OF WHAT THIS DOES, IS THE CHILD PASSENGER SAFETY PROGRAM. THESE ARE SOME IMAGES FROM THIS YEAR OF SOME OF THE THINGS WE HAVE DONE OUT IN THE COMMUNITY. ONE OF THE NEWEST COLLABORATIONS HAS BEEN WITH TARGET POSTING THE CAR SEAT EVENT IN THEIR PARKING LOT. THEY HAVE A BUYBACK CAR SEAT PROGRAM WHERE PEOPLE CAN BRING BACK CAR SEATS AND EXCHANGE THEM AND SO THAT WAS NICE, WE DID NOT HAVE TO TAKE BACK THE DAMAGED CAR SEATS, THAT WAS A NICE WAY TO HAVE AN EVENT AND PARTNER WITH THEM. WE HAD SEVERAL TECHNICIANS RECERTIFIED THROUGH THAT. TO DATE, WE HAVE DONE 54 TOTAL INSPECTIONS EITHER THROUGH EVENTS OR PARTNERSHIPS.

19 OF THOSE 54 WERE THROUGH THE PARTNERSHIP WITH ADMIRAL LIFE.

THEY HAD A REP FROM COLLEGE STATION THAT CAME AND WE WENT TO HOPKINS CAMPUS AND WE ACTUALLY DID A BOOSTER SEAT INITIATIVE. THEY ISSUED OUT AND PROVIDED THOSE BOOSTER SEATS AND WE ISSUED 19 BOOSTER SEATS TO FAMILIES AT HOPKINS ELEMENTARY AND WE HAD A SEAT INSIDE AND THEY HAD A SEAT WHERE THEY BROUGHT IT WITH THEM AND WE SHOWED THEM HOW TO USE IT AND HOW TO PROPERLY GET THEIR CHILD IN THEIR AND SO THAT WAS A REALLY GREAT INITIATIVE AND IT WAS PART OF THAT PARTNERSHIP. OF THE 25 SEATS THAT YOU SEE ISSUED THERE, SIX OF THEM WERE FROM THE CAR SEAT PROGRAM. FOUR SEATS WERE DONATED FOR DESTRUCTION. WE DO TAKE THE SEATS THAT CANNOT BE REUSED OR PASSED DOWN TO YOUNGER CHILDREN

[01:00:01]

ANOTHER ONE AT THE COMMUNITY CENTER IN SEPTEMBER. I WILL ALSO HAVE A CAR SEAT EVENT. WE LIKED THE GREATER VISIBILITY AT TARGET DRAWING IN A LOT OF TRAFFIC. IT WAS A VERY BUSY DAY IN APRIL. IT WAS SUCCESSFUL. THIS IS THIS YEAR'S PROPOSED PROGRAM. THE COMMITTEE MET AROUND BUDGET TIME. LOOKING OUT WHERE WE WERE WITH THE FUND BALANCE. EACH YEAR THE BALANCE BEGAN WITH THAT FUND BALANCE. WE LOOK AT IMPLEMENTING OR ADDING ADDITIONAL FUNDING TO THE GRANT PROGRAM WHICH INITIALLY WAS A PRIORITY FOR COUNSEL TO SUPPORT THE LOCAL AND NONPROFIT ORGANIZATIONS. WE ARE PROPOSING IF COUNSEL WISHES, TO INCREASE THAT TO $70,000 FOR THE GRANT PROGRAM.

LEAVING THE CARSEY PROGRAM FLAT WHERE IT IS AT. THE BALANCE PROJECTED FOR THE END OF THE NEXT FISCAL YEAR WOULD BE $600,093. THIS IS WHAT WE ARE LOOKING AT PROPOSING FOR THIS NEXT YEAR. THAT IS ALL I HAVE FOR MY PRESENTATION. THE MAIN FOCUS WAS INCREASING THE BALANCE OF THE GRANT ALLOCATION FOR THE NONPROFIT ORGANIZATIONS TO USE THAT FUND BALANCE THAT WE HAVE AVAILABLE. OUR INTENT IS TO FULLY FUND THAT GRANT PROGRAM UP FRONT AND HAVE THAT AVAILABLE NOT RELYING ON THE REVENUE THAT IS COMING IN FROM THAT FEE. WE HAVE IT AVAILABLE, USING THAT FUNDING THAT WE HAVE ALREADY BUILT UP. WE HAD THE ENHANCED FOCUS ON THE PASSENGER SAFETY PROGRAM THIS YEAR, WE HOPE TO HAVE THAT AS WE MOVE FORWARD. THE EXPECTATION IS THAT THESE PROGRAMS WILL CONTINUE WITH A DEDICATED FUNDING SOURCE. I AM HAPPY TO ANSWER ANY QUESTIONS YOU MIGHT

HAVE. >> I'VE GOT ONE. I NOTICED THAT THERE WAS A FUND BALANCE FROM YEAR TO YEAR, WHY IS THAT?

>> YOU ARE TALKING ABOUT THE $190,000? THAT IS THE TOTAL AMOUNT? IN THIS CURRENT YEAR, IN FISCAL YEAR 23, WE HAD $85,000 AND COLLECTED REVENUE THAT WE RECEIVED. FROM THE FEES. EACH YEAR, WHEN WE INITIALLY BEGAN THIS PROGRAM, THE INTENT WAS 60% OF THE COLLECTED AMOUNT WAS TO BE ALLOCATED TO THE GRANT PROGRAM. 20% TO THE CARSEY PROGRAM. EACH YEAR, WE FOLLOW THAT SAME THING, ADDING MORE AND MORE TO THE FUND BALANCE VERSUS ADJUSTING AND REALLOCATING AND INCREASING OUR GRANT BUDGET. THE INTENT NOW IS THAT WE WILL BE ABLE TO GROW IT EACH YEAR, WE WILL BE ABLE TO REMAIN STEADY AND BE ABLE TO HAVE THIS AS LONG AS THE FUNDING IS AVAILABLE. WE WERE NOT READJUSTING IT AND BASING IT OFF OF THAT PRIOR DIRECTION WHEN WE ESTABLISH IT.

>> THANK YOU. ANY OTHER QUESTIONS? THANK YOU. I KNOW THAT THIS IS A REALLY IMPORTANT AND VITAL PROGRAM FOR THE

[2. FY 2025 Proposed Pay Program Overview. Jesús A. Garza, City Manager]

>> YES, IT IS, YOU WILL HAVE ME FOR AN HOUR. AS I ALLUDED TO ON FRIDAY, WHEN WE SHARED THE PRELIMINARY BUDGET, I FELT THAT IT WAS IMPORTANT TO TAKE SOME TIME OUTSIDE OF FRIDAY TO DELVE INTO THE DETAILS OF THE PROPOSED PAY PROGRAM . IT IS A VERY IMPORTANT TOPIC. AS YOU HEARD EARLIER, OBVIOUSLY, THIS IMPACTS OUR EMPLOYEES. ALL OF WHOM ARE VERY CRITICAL ACROSS OUR ENTIRE ORGANIZATION. PART OF WHAT I WILL PRESENT TO YOU TODAY, AS PART OF THE PRESENTATION, WHAT YOU WILL

[01:05:02]

MEANING THE VACANCY ISSUE AND RETENTION ISSUE. THE COMPENSATION STUDY THAT WE HAVE BEEN ABLE TO IMPLEMENT. THE RESULTS OF THE UPDATED COMPENSATION STUDY WE DID IN 2024. INCLUDING THE PRELIMINARY BUDGET. AS WELL AS THE ALTERNATIVE OPTION AT THE DIRECTION OF THE MAYOR AND SOME OF YOU, WE HAVE DEVELOPED AN OPTION THAT WILL NOT REDUCE THE UPDATED SERVICE CREDIT AND DOES NOT PROVIDE AS MUCH OF A PAY BUMP THROUGHOUT FISCAL YEARS 25 AND 26. ULTIMATELY, WHAT I WILL BE NEEDING FROM YOU IS DIRECTION ON WHICH PAY PROGRAM YOU WOULD PREFER TO SEE IN THE PROPOSED BUDGET THAT I WILL PRESENT TO YOU ON AUGUST 6TH. THE BEST WAY TO DO THIS, WOULD BE TO FOCUS TODAY ON PROVIDING YOU THE INFORMATION, ALLOWING YOU SOME TIME TO DIGEST IT, YOU WILL BE NUMBERS AND PERCENTAGES THAT I WILL THROW YOUR WAY AND AT THE NEXT COUNCIL MEETING ON THE 16TH, IT WILL BE AN OPPORTUNITY FOR YOU TO ASK ADDITIONAL QUESTIONS SO THAT AS WE FINALIZE THE PROPOSED BUDGET IT IS INCLUDED IN THE PROPOSED BUDGET. THAT IS HOW I ENVISION THIS GOING. TO THAT END, I WANT TO TALK A LITTLE BIT ABOUT THE STATEMENT WHICH IS WHAT CAN THE CITY DO TO REDUCE TURNOVER IN OUR ORGANIZATION? THE BEST WAY TO PAINT THIS PICTURE IS TO SHOW YOU A COUPLE OF DATA POINTS AND I KNOW THAT THE NUMBERS ARE HARD TO SEE. IN ESSENCE, WHAT YOU'RE SEEING HERE, IS A HISTORICAL LOOK AT THE NUMBER OF VACANCIES AT THE END OF EACH PARTICULAR FISCAL YEAR GOING BACK TO 2015. THE RED IS FIRE, BLUE'S POLICE, AND -- IS FOR THE PUBLIC WORKS.

THERE ARE KEY TAKEAWAYS FROM THIS. RIGHT OFF THE BAT, PUBLIC WORKS IS THE BIGGEST ISSUE. PUBLIC WORKS IS THE DEPARTMENT THAT HAS EXPERIENCED THE MOST VACANCIES IN THAT TIMEFRAME LEADING UP TO TODAY. ANOTHER IS THAT WE DO SEE AN INCREASE IN FIRE IN FISCAL YEARS '21 AND '22. THAT WAS A TREND THAT WAS A NATIONWIDE TREND, THERE WAS A LOT OF BURNOUT THAT A LOT OF FOLKS IN THE FIRE DEPARTMENT WERE FEELING. WE WERE NOT INTO THAT. THAT EXPLAINS THAT. ULTIMATELY, THERE IS AN INCREASE IN POLICE AND FIRE VACANCIES OVER THE LAST FOUR YEARS AND PUBLIC WORKS IS THE BIGGEST CHALLENGE FOR US. THIS IS IN TERMS OF VACANCIES. IF WE LOOK AT HOW MANY PEOPLE HAVE LEFT THE ORGANIZATION, THIS IS INTENDED TO REFLECT THAT. YOU WOULD THINK THAT THERE WOULD BE A CORRELATION BETWEEN THE TWO GRAPHS. THIS SPEAKS TO THE VACANCIES THAT WE STILL HAVE TODAY THAT WE CANNOT FILL ALL OF THEM. IT IS A VERY SIMILAR STORY IN TERMS OF PUBLIC WORKS WHERE WE ARE SEEING THE MOST TURNOVER IN RECENT YEARS AND OVERALL THE OPTIC WITH FISCAL YEARS '21 AND '23. THIS HAS BEEN A CHALLENGE FOR US, HISTORICALLY, TO SOME EXTENT. WHAT I AM TRYING TO SHOWCASE WITH THESE GRAPHS, IT HAS ALWAYS BEEN A CHALLENGE FOR US TO KEEP STAFFING LEVELS FILLED, IT HAS GOTTEN A LITTLE BIT WORSE JUST IN THE LAST THREE OR FOUR YEARS IN PUBLIC WORKS.

THAT IS THE BIG TAKE AWAY FROM THIS. AND SO, WITH RECENT MEETINGS THAT I HAD WITH EMPLOYEES, WE TALKED ABOUT ULTIMATELY THE THREE FACTORS THAT IMPACT SOMEBODY'S DECISION TO LEAVE, STAY, WHATNOT, ARE THESE THREE BUCKETS, WAGES, HEALTH INSURANCE, RETIREMENT, WE CONDUCTED SURVEYS AMONG THE LEADERSHIP TEAMS AND AT THE TIME, WAGES WAS A CONCERN.

HEALTH INSURANCE WAS A BIGGER CONCERN BASED ON THE FEEDBACK THAT WE RECEIVED IN 2019. I WILL SHOW YOU OUR HISTORY HERE IN A BIT. THERE IS NOT BEEN MUCH CONVERSATION ABOUT RETIREMENT IN THAT TIMEFRAME, UNTIL NOW. PART OF WHAT I WOULD LIKE YOU TO KEEP IN MIND IS THIS REALITY. I HAVE BEEN UP

[01:10:01]

EVEN THOUGH HIS LABELED 2020, A LOT OF THE DATA WAS DERIVED FROM 2019. EVEN THOUGH IT WAS COMPLETED IN THE EARLY PART OF 2020. THIS WAS PRE-PANDEMIC. I LIST OUT SOME OF THE CITIES AND OTHER ORGANIZATIONS THAT WE USED TO COMPARE OURSELVES TO.

WE ARE TRYING TO BE MINDFUL ABOUT BUDGET SIZE, TRYING TO BE MINDFUL OF POPULATION SIZE WITH SOME OF THIS. WE DID RECEIVE FEEDBACK SHORTLY AFTER COMPLETING THE STUDY THAT WE SHOULD'VE USED CITIES THAT WE ARE LOSING PEOPLE TOO. WE MADE THAT ADJUSTMENT IN 2024 AND I WILL SPEAK TO THAT. IN 2020, IF WE WERE TO PULL UP ALL THE DIFFERENT POSITIONS THAT WERE COMPARED, AND WE WERE JUST TO SAY THAT THIS IS WITHIN 5% OF THE MARKET, WE WILL SAY THAT WE ARE COMPETITIVE. HOW MANY POSITIONS WERE NONCOMPETITIVE? FOR CIVILIAN POSITIONS, I'M NOT REFERRING TO CERTIFIED FIREFIGHTERS OR POLICE OFFICERS. CIVILIAN EMPLOYEES ARE BASICALLY THE NONUNIFORMED PERSONS FROM THE ORGANIZATION. THAT DATA IN 2020 SUGGESTED THAT 61% OF THE POSITIONS THAT WERE SURVEYED WERE BELOW MARKET OR BEHIND MARKET AND THAT ONLY 39% OF THOSE POSITIONS, OF CIVILIAN POSITIONS WERE COMPETITIVE. IF WE WERE TO EXTRAPOLATE AND LOOK AT POLICE AND FIRE, WHICH THE FIGURES I JUST SHOW DID NOT INCLUDE THEM, WE ARE 3% BEHIND MARKET IN THE END OF THAT RANGE. THIS WAS NOT A SURPRISE AT THE TIME. WE LOSE A LOT OF EXPERIENCED POLICE OFFICERS AND THIS IS WHY. EVEN THOUGH WE ARE IN THE BALLPARK OF STARTING PAY, THEY BECOME A SENIOR POLICE OFFICER AND THEY ARE IN THE WINDOW OF EXPERIENCE FOR US, WE ARE NOT ADEQUATELY COMPENSATING FOR THAT EXPERIENCE AND TENURE. IT BECAME VERY EASY FOR THE EXPERIENCED POLICE OFFICER TO LEAVE AND WORK ELSEWHERE, WHERE THEY WOULD BE PROPERLY COMPENSATED FOR THEIR LEVEL OF EXPERIENCE. IT WAS NOT A SURPRISE TO US THAT THE DATA BACKED UP THAT WE WERE STILL BEHIND MARKET AND IN THE BALLPARK BUT MOSTLY BEHIND WITH TENURED FOLKS ON THE POLICE SIDE. THE DATA IN 2020 ON THE FIRE DEPARTMENT SIDE SHOWED 7% BEHIND MARKET. AS I ALLUDED TO EARLIER, WE HAVE NOT HAD AS MUCH OF AN ISSUE WITH VACANCIES AND RETENTION THAT WE HAVE HAD WITH THE POLICE DEPARTMENT. MUCH OF THE VACANCIES THAT WE HAVE HAD WITH THE FIRE DEPARTMENT HAVE REALLY BEEN SOMETHING THAT HAS BEEN A MEANINGFUL HIT FOR US BEGINNING IN THE MIDDLE OF THE PANDEMIC ONWARD. I WILL SPEAK TO THAT A LITTLE BIT LATER, THAT WAS 2020. WE EMBARKED ON IMPLEMENTING RECOMMENDATIONS FROM THAT PLAN OVER A FEW YEARS. WE KNEW THAT IT WOULD BE IMPOSSIBLE THEN, LIKE WE DO NOW, TO EMPLOY ANY RECOMMENDATION FROM EAT ONE YEAR TO THE NEXT. THIS SNAPSHOT SHOWS WHAT WE HAVE BEEN ABLE TO DO FROM FISCAL YEARS '21 TO '24. IN FISCAL YEAR '21, ALL ALONG, THROUGHOUT OUR EFFORT TO DO THE COMPENSATION STUDY IN 2019 AND 2020, WE EMBARKED ON MAKING SIGNIFICANT CHANGES TO THE APPROACH TO THE HEALTH INSURANCE. WE SELECTED A NEW CONSULTING, FOR EXAMPLE. I MADE A HUGE DIFFERENCE FOR US.

ULTIMATELY, WE CHANGED THE LEVEL OF FINANCIAL CONTRIBUTION WE ARE PUTTING TOWARDS THE PREMIUMS INTO THE HEALTH FUND IN 2021. MANY OF YOU MAY RECALL, 10 YEARS AGO OR SO, WHEN THE CITY EMBARKED ON A PATH TO GO TO A HIGHLY DEDUCTIBLE PLANS. AND PASSED ON THE EXPENSE OF A LOT OF THAT TO EMPLOYEES BY INCREASING PREMIUMS, INCREASING OUT OF POCKETS, INCREASING DEDUCTIBLES. ONE OF THE THINGS THAT DID NOT HAPPEN TO THE EXTENT THAT IT SHOULD HAVE, THE

[01:15:08]

I WAS AN INCREASE OF $410,000 IN FISCAL YEAR '24 THAT HAD TO GO TO TO TMR S I WILL SHARE THAT HISTORY IN A MINUTE. THAT IS WHAT HAPPENED IN THESE FISCAL YEARS. IF YOU ASKED ME IN 2020, WHAT IMPACT DO YOU THINK THE IMPLEMENTATION OF THIS PLAN IS GOING TO HAVE ON RETENTION AND VACANCY AND ALL THAT I WOULD TELL YOU, I'M EXCITED ABOUT IT, I THINK IT WILL MAKE A DIFFERENCE. NOBODY COULD'VE FORESEEN THE PANDEMIC, NOBODY COULD'VE FORESEEN ALL OF THE OTHER FACTORS THAT HAVE TAKEN PLACE THAT HAVE NOT FACILITATED THIS INVESTMENT INTO FOLKS FEELING LIKE IT HAS MADE A DIFFERENCE.

JUST BECAUSE OF EXTERNAL FACTORS AND THAT IS JUST THE REALITY OF IT. AS I ALLUDED TO ON THE HEALTH BENEFITS SIDE, WE HAD THE EXTRA $1 MILLION IN FISCAL YEAR '21 AND WE HAVE BEEN ABLE TO DECREASE EMPLOYEE PREMIUMS IN THE LAST THREE OR FOUR YEARS. WE HAVE BEEN ABLE TO ADD VALUE OVER THE LAST FEW YEARS BY JUST SIMPLY ADDING MORE SUPPLEMENTAL OPTIONS FOR EMPLOYEES AND IMPROVED VALUE TO OUR OFFERINGS. AS I ALLUDED TO ON FRIDAY, FOR FISCAL YEAR '25, WE ARE EXPLORING VERY SERIOUSLY ADDING THE EPO PLAN TO THE MIX FOR FISCAL YEAR '25 THAT WILL LOWER DEDUCTIBLES AND LOWER OUT OF POCKETS AND WOULD INCREASE THE PREMIUM FOR EVERYONE INVOLVED. IT WOULD INCREASE THE PREMIUM FOR THE EMPLOYEE, BECAUSE THE WAY IT WORKS WHEN YOU'RE SELF-INSURED IS THAT THE COST OF THE PREMIUM AND THE REVENUE OUGHT TO BE SUFFICIENT CASH TO PAY FOR THE MEDICAL CLAIMS, RIGHT? WE KNOW THAT MEDICAL COSTS ARE NOT GOING DOWN. IF WE OFFER A PLAN THAT DOES HAVE A LOWER DEDUCTIBLE FOR EMPLOYEES AND A LOWER OUT OF POCKET, WE ARE PICKING UP -- THE PREMIUM IS PICKING UP THE EXPENSE ABOVE THAT. RIGHT? DOES THAT MAKE SENSE? HOWEVER, EMPLOYEES HAVE BEEN ASKING FOR THIS OPTION FOR SEVERAL YEARS AND I FEEL COMFORTABLE AND CONFIDENT PURSUING THIS OPTION BECAUSE OF WHERE THE FUND IS TODAY. IT IS MIND BOGGLING AS I ALLUDED TO ON MONDAY, THE RESERVE FUNDS IN THE HEALTH FUND WERE AT $1.5 MILLION. IN NO WAY, SHAPE, OR FORM, COULD WE INTRODUCE TO THE EPO PLAN IN 2019, THERE WAS NOT ENOUGH CUSHION TO TAKE ANY LEVEL OF RISK WITH ANY KIND OF CHANGES OR RISKS IN THE HEALTH PLAN OFFERINGS, BECAUSE OF THE MONEY THAT WE PUMP EVERY YEAR INTO THE HEALTH FUND, WE ARE ROUGHLY AT A YEARS WORTH OF RESERVE IN THE HEALTH PLAN AND THE LAST TIME WE WERE THERE WAS LITERALLY 10 YEARS AGO. THE STORY BEHIND THE HEALTH FUND IS THAT IT IS AN EXTREMELY SUCCESSFUL STORY THAT IN MY OPINION IT WILL CONTINUE TO PAY DIVIDENDS IN ENHANCEMENTS AND IMPROVEMENTS TO THE HOUSE OFFERINGS, THE HEALTH BENEFIT OFFERINGS. IF WE GO BACK TO THE CHART WITH THE THREE BUCKETS, WE HAVE DONE OUR PART AND WE WILL CONTINUE TO DO OUR PART ON THE HEALTH BENEFIT PART OF THAT AND THIS IS AN EXAMPLE OF WHY WE HAVE BEEN ABLE TO DO THAT. ULTIMATELY, WE NEED TO ALSO BE MINDFUL OF THE REALITY OF WHY WE WERE ABLE TO DO ANY OF THAT TO BEGIN WITH. IT WAS NOT BECAUSE I SHOWED UP IN 2019. IT

[01:20:02]

HARVEY IS A BIG REASON WHY 2017 WENT DOWN, YOU CAN SEE THE SIGNIFICANT INCREASES FROM THE EQUAL FURRED MOVEMENT ROUGHLY 10 YEARS AGO AND SOME OF THAT CAN BE EXPLAINED. THOSE ARE ONE OFFS. WE HAVE EXPERIENCED FOR THE LAST THREE YEARS WHAT IS CONSISTENT AND RELIABLE BUT ONLY FOR THAT DURATION. AS I MENTIONED TO YOU AND EMPLOYEES, THAT MOMENTUM IS GOING TO STOP.

IT IS STOPPING BECAUSE THERE IS ECONOMIC STABILIZATION TAKING PLACE THAT IS CREATING THAT PLATEAUING OF REVENUES. IT GOES WITHOUT SAYING THAT INFLATION IS CHANGING THE NAME OF THE GAME AS IT RELATES TO WHAT PEOPLE HAVE DISPOSABLE INCOME FOR. WHEN YOU HAVE A SALES TAX REVENUE THAT IS BASED OFF OF A PRICE OF A PRODUCT AND THAT PRODUCT IS NOW FACING INFLATION, IT IS A FALSE SENSE OF THE SALES TAX REVENUE, ONCE IT STABILIZES, YOUR REVENUE WILL STABILIZE. THIS IS NOT SUSTAINABLE. CONTRIBUTING TO THIS BLIP AND WHAT WE HAVE SEEN THE LAST FEW YEARS. INTEREST RATES CONTRIBUTE TO LACK OF GROWTH EVERYWHERE. IT IS MUCH HARDER FOR PEOPLE TO MOVE, ET CETERA. THE HOUSING MARKET IS PART OF THAT. I HAVE HIT BRIEFLY ON THE IMPACT OF THE STIMULUS FUNDS. ONE OF THE THINGS THAT HAPPENED ON THE PANDEMIC IT WAS THAT THE GOVERNMENT PUT OUT A LOT OF MONEY. THEY PUT OUT A LOT OF MONEY TO PEOPLE'S POCKETBOOKS AND THEY PUT OUT A LOT OF MONEY TO ORGANIZATIONS LIKE OURS AND OTHERS WHERE WE HAVE BEEN ABLE TO PUT THAT MONEY OUT IN SOME CAPACITY TO BE UTILIZED. THAT WAS ONE TIME CASH. ALL OF THE STIMULUS DOLLARS THAT CAME BECAUSE OF THE PANDEMIC WERE NOT A SUSTAINABLE REVENUE GENERATING THING THAT WAS GOING TO BE OUT THERE, RIGHT? THAT IS CREATING STABILIZATION. I ADDED TO THIS SLIDE, FOR THE LACK OF GROWTH. I THINK IT IS IMPORTANT, AGAIN, I WILL RE-EMPHASIZE IT EVERY CHANCE I GET, THE GROWTH AND LACK THEREOF HAS CONTRIBUTED AND CONTRIBUTES DIRECTLY TO HOW MUCH MONEY WE HAVE AVAILABLE TO EVEN JUST HAVE A CONVERSATION ABOUT. NOW, THIS IS NOT SOMETHING WE ARE EXPERIENCING JUST HERE. THIS IS A SNAPSHOT OF HEADLINES THAT OF, THROUGH IN THE NEWS EMAILS THAT WE GET EVERY DAY OF SOME OF THE THINGS THAT ARE GOING ON IN OTHER CITIES. I WANT TO KIND OF GO BACK, JUST TO MAKE IT POP OUT AGAIN. CITIES ALL ACROSS THE STATE ARE HAVING TO CUT EXPENDITURES. THE CITY WILL

[01:25:01]

CITIES EVERYWHERE ARE HAVING CONVERSATIONS ABOUT WHAT TO CUT. THE DIFFERENCE, A LOT OF THESE CITIES ARE EXPERIENCING GROWTH TO A GREATER DEGREE THAT WE ARE. TO SOME EXTENT, THEY CAN ABSORB THE NEGATIVE IMPACTS BETTER THAN WE CAN. THEY HAVE NEW GROWTH TO CANCEL OUT SOME OF THE ECONOMIC STABILIZATION THEY ARE EXPERIENCING AND WE DO NOT HAVE THAT. IN SPITE OF ALL OF THIS, IN SPITE OF US INVESTING $5 MILLION OVER FOUR YEARS AND THE IMPACT THAT THE PANDEMIC HAD ON EVERYTHING AND IN SPITE OF THE ECONOMIC STABILIZATION WE ARE EXPERIENCING, WE STILL HAVE A PROBLEM. AS I SHARED, WE ARE STILL SEEING VACANCIES IN PUBLIC WORKS. THE MOST THAT WE HAVE EVER HAD. THIS DEPARTMENT IS EXPERIENCING AT THE MOST AND POLICE AND FIRE, IT HAS ALWAYS BEEN AN ISSUE. IT IS A LITTLE WORSE IN THE LAST FEW YEARS. AGAIN, WHEN WE LOOK AT THE THREE BUCKETS. WHAT WE THINK WE SHOULD INVEST IN IN ORDER TO HELP THIS PROBLEM? I AM CONTENDING THAT THE PRIORITY ORDER FOR THESE ITEMS, WITH WHAT THEY ARE LISTED ON THE SLIDE, WITH WAGES COMING FIRST, HEALTH BENEFITS COMING SECOND, AND RETIREMENT COMING THIRD, IF PUSH COMES TO SHOVE, AND WE HAVE TO RECALIBRATE AND ADJUST LIMITED FUNDS, THIS WOULD BE THE PRIORITY ORDER THAT I THINK CAN SOLVE THE PROBLEM. WE FOCUS ON WAGES, HEALTH BENEFITS, THIS IS FOR US TO BE RECALIBRATING THE RETIREMENT, THERE IS AN OPTION NOT TO. IN 2024, WE DECIDED TO UPDATE THE COMPENSATION STUDY BECAUSE WE KNEW THAT THE PANDEMIC HAD THE MARKET AND CREATED GREATER SEPARATION BETWEEN US AND OTHER PLACES. WE DID NOT HAVE TO GO THROUGH A STUDY TO TELL US THAT. WE CERTAINLY NEEDED TO GO THROUGH A STUDY TO IDENTIFY HOW MUCH. WE KNEW BY WHAT THEY WERE TELLING US, BY WHAT OUR OWN FOLKS WERE TELLING US, WE KNEW THAT OTHER COMMUNITIES HAD SIGNIFICANTLY INCREASED COMPENSATION FOR CRITICAL POSITIONS. WE KNEW THAT. WE WENT THROUGH THE STUDY TO TRY AND UNDERSTAND TO WHAT EXTENT.

WE KNEW THAT INFLATION WAS CREATING A CHALLENGE FOR A LOT OF EMPLOYEES ESPECIALLY LOWER PAID EMPLOYEES. WE MADE IT A POINT TO GO THROUGH THIS STUDY WITH SPECIFIC DIRECTION TO INCREASE MINIMUM WAGE TO $15 PER HOUR. WE INCREASED IT TO 13 IN FISCAL YEAR '22. I'M SURE THAT WE CAN ALL AGREE THAT EVEN $15 PER HOUR IS NOT REALLY IDEAL. NONETHELESS, THAT WAS THE GOAL. WE KNEW GOING INTO THE STUDY THAT IT WOULD BE COST PROHIBITIVE TO AFFORD GETTING TO WHATEVER THE DATA WOULD SHOW AT 100% OF THE MARKET BECAUSE WE KNOW THAT WE ARE IN A COMPLETELY DIFFERENT PLACE THAN EVERYBODY ELSE THAT IS BEING LOOKED AT IN COMPARISON. THIS SLIDE SHOWS YOU THE GROWTH THAT ALL OF THE CITIES THAT WE COMPARED OURSELVES TO EXPERIENCED IN THE LAST '20 YEARS FROM THE 2000 CENSUS TO THE 2020 SENSES, YOU CAN SEE THAT VICTORIA ONLY EXPERIENCED 8% GROWTH IN THAT '20 YEAR PERIOD AND EVERYTHING ELSE SPEAKS FOR ITSELF. NOW, THERE ARE A LOT OF METRICS THAT CAN BE UTILIZED TO TRY AND COMPARE OUR FINANCIAL RESOURCES TO ANOTHER. THIS IS THE EASIEST, I THINK, BECAUSE OBVIOUSLY WHEN YOUR COMMUNITY IS EXPERIENCING GROWTH, YOUR TAX BASE IS GROWING AND WHEN YOUR TAX BASE IS GROWING, YOU HAVE MORE CASH TO KEEP UP WITH WHAT YOU ARE DOING OR BE ABLE TO ENHANCE IT.

WHEN THESE CITIES HAVE ACCESS TO A GREATER REVENUE SOURCE

[01:30:01]

MARKET. >> THIS STUDY WAS BASED ON WAGES? DID THIS INCLUDE BENEFITS AS WELL? YOU ARE JUST LOOKING AT WAGES. STRICTLY ONLY LOOKING AT WAGES. LOOKING AT PAY RANGES FOR THESE ORGANIZATIONS. AS I ALLUDED TO AT THE BEGINNING, WE KNEW WE WOULD BE COST PROHIBITED TO GET TO 100% OF MARKET. THAT WILL COST US $3.2 MILLION. THAT IS THE PROPOSAL. I MENTIONED, IN 2020, IT SHOWED POLICE BEING 3% BEHIND MARKET AT THE BEGINNING AT THE COMPARATIVE STARTING PAY AND AT THE END OF THE RANGE, BEING '25. AND FIRE BEING 7-7.

THAT SHOWS THAT STARTING PAY FOR POLICE OFFICERS, WE ARE 19% BEHIND MARKET. FOR FIRE, 17% BEHIND MARKET. I WANT TO BE VERY CLEAR AND TRANSPARENT THAT THE DATA DOES BACKUP THAT THERE HAS BEEN A GREATER MARKET SEPARATION FOR PUBLIC SAFETY POSITIONS. I INTENTIONALLY INCLUDED AS WELL ON THIS, ALL OF THE RANKS THAT ARE INCLUDED IN OUR PLAN FOR POLICE AND FIRE BECAUSE IT IS NOT JUST ABOUT HOW MUCH WE PAY WHEN SOMEBODY STARTS THEIR JOB, WE SHOULD BE MINDFUL OF WHAT WE ARE PAYING FOR THE RANKS ABOVE, AS WELL. TO ENSURE THAT WE ARE KEEPING UP WITH MARK AS BEST WE CAN WITH ALL THESE OTHER POSITIONS WITHIN POLICE AND FIRE. FOR EXAMPLE, IF I WERE TO PULL OUT THE FIRE LIEUTENANT POSITION, THE FIERY LIEUTENANT POSITION IS 31% BEHIND MARKET IN MINIMUM PAY. SO IF WE ARE GOING TO COME BACK AROUND AND MAKE A RECOMMENDATION ON HOW THIS WOULD LOOK BETTER, THERE WOULD BE A SUBSTANTIAL INCREASE TO THE FIRE LIEUTENANT PAY GREATER THAN THE BEGINNING PAY BECAUSE DATA SUGGESTS THAT FIRE LIEUTENANT PAY IS FURTHER BEHIND MARKET. DOES THAT MAKE SENSE? WE NEED TO BE MINDFUL OF ALL THAT. IN A NUTSHELL, WHAT THE RECOMMENDATION IS $3.2 MILLION OVER TWO YEARS, BUT THIS LOOKS LIKES, THE PROPOSAL IS THAT IN FISCAL YEAR '25 THE GROSS IMPACT OF THAT IS 1.8

[01:35:02]

UNDER THIS PROPOSAL, IF WE DON'T COME UP WITH AN ADDITIONAL WAY TO PAY OUR FOLKS IN PUBLIC WORKS MORE THAN 3%, WE WILL CONTINUE HAVING AN ISSUE. COINCIDENTALLY, PUBLIC WORKS DEPARTMENT ALSO HAS SOME OF THE LOWER PAID POSITIONS AND 3% IS NOTHING. 3% IS NOTHING WHEN YOU ARE MAKING $30,000 PER YEAR. RIGHT? WE NEED TO COME UP WITH A SEPARATE STRUCTURE TO HELP PUT A BAND-AID TO A GREATER DEGREE WITH PUBLIC WORKS. THAT IS STILL IN THE WORKS. I'M TRYING TO BE MINDFUL OF IT. IN FISCAL YEAR '26 THE PROPOSAL WOULD COST 1.46 MILLION AND THIS WOULD ADOPT A NEW STEP PLAN STRUCTURE WHICH WOULD BE 90% OF MARK AND I WILL SHOW YOU WHAT THAT LOOKS LIKE HERE IN A SECOND. HE WILL MOVE ALL OF THE PAY RANGES FOR ALL CIVILIAN POSITIONS TO 90% OF THE DATA. WHAT IS 90% OF THE DATA? IF I HAVE A POSITION OR WE HAVE A POSITION THAT MAKES $40,000 PER YEAR CURRENTLY IN THE DATA SUGGEST THAT THE STARTING PAY BE $50,000, WE ARE SAYING THAT IF YOU MULTIPLY THAT BY 600 PEOPLE. WE ARE SAYING WE CANNOT AFFORD TO INCREASE PAY FOR THAT PERSON WHICH IS 100% OF MARKET. WE WILL ADOPT THE PAY RANGE OF 90% OF MARKET AND SAY THAT WE CAN'T AFFORD TO GET THAT PERSON FROM 40 TO 45. DOES THAT MAKE SENSE? ONE OF THE THINGS THAT IS A REALITY OF THE SITUATION, THE PAY FOR CIVILIANS IN FISCAL YEAR WILL VARY QUITE A BIT. THERE ARE MANY CIVILIAN POSITIONS THAT ARE 25% BEHIND MARKET AND SOME ARE AT MARKET. IT DOES GET TRICKY BECAUSE IT WOULD ROLL OFF THE TONGUE A LOT EASIER TO SAY THAT I WILL GET 3% ON '26. ON THE CIVILIAN SIDE, THAT IS NOT HOW IT WILL ROLLOUT. FOR NOW, WE HAVE NOT FOCUSED ON THE DETAILS OF '26. WE HAVE NEXT SUMMER TO FIGURE THAT OUT. THE PRIORITY IS '25. IT'S GOOD TO UNDERSTAND WHAT WE ARE COMMITTING TO FOR A BASELINE OF FISCAL YEAR '26. I WANT TO PUBLICLY KNOWLEDGE THAT AFTER THE IMPLEMENTATION OF FISCAL YEAR '26 WE WILL STILL HAVE AN ISSUE TO CONTEND WITH ON THE CIVILIAN SIDE ONCE WE GET TO THAT. ALL THIS WILL DO IS GET EVERYBODY TO A NEW MINIMUM. UNLIKE THE STRUCTURING POLICE AND FIRE THAT DOES COUNT FOR TENURE THAT MOVES ALONG THE LADDER OF THE STEPS, WE DO NOT HAVE THAT SAME STRUCTURE FOR CIVILIAN EMPLOYEES. WHEN WE START THINKING ABOUT FISCAL YEAR 27, 28, WE WILL HAVE TO START PUMPING MORE MONEY INTO THE CIVILIAN SIDE OF THE EQUATION SO THAT WE CAN MOVE FOLKS ALONG THE PAY RANGE TO ACCOUNT FOR EXPERIENCE SO THAT WE DO NOT HAVE AN ISSUE OF SOMEBODY WITH 10 YEARS OF SERVICE MAKING JUST AS MUCH AS THE PERSON THAT STARTED TOMORROW. THAT IS A REAL ISSUE. IT DOES NOT SHOW THAT WE ARE REWARDING OR RECOGNIZING THAT TENURE AND EXPERIENCE. AGAIN,

[01:40:01]

THAT IS HOW WE ENVISION PAYING FOR THAT. THAT IS WHAT I WANT TO FOCUS ON FOR NOW. I SPOKE ABOUT THE PAY PROGRAM. YOUR OF THE SAVINGS PRODUCED BY THE CHANGES IN TMRS. THE SAVINGS THAT WE ANTICIPATE WE WOULD HAVE. THE BASELINE ADJUSTMENT

[01:45:01]

WHEN YOU SEE THE UTILITY FUND TO THE LEFT OF THIS LINE, IS BECAUSE OF THE BASELINE ADJUSTMENT OF REDUCING AND UNDERFUNDING AND FREEZING SIX POSITIONS WITH THE UTILITY FUND. THAT IS WHY IT IS FLOWING IN THAT DIRECTION. I WANT TO PAUSE THERE FOR A SECOND. I KNOW THIS IS A VERY LONG PRESENTATION. IT IS WARRANTED. I'M TRYING TO GO AT A GOOD PACE. I WANT TO STOP BEFORE TRANSITIONING TO TMRS AT A GREATER DEGREE. IS THERE ANY QUESTIONS ABOUT THE BUDGETARY

FIGURES THAT I HAVE SHARED? >> JUST A LITTLE BIT OF CLARIFICATION ON THE SLIDE THAT YOU JUST HAD, OF IF THIS YEAR, YOU WILL BE 402,000 INCREASE AND THEN THE NEXT YEAR HE WOULD BE -- INCREASE AND WHAT IS NOT ON THIS SLIDE FOR NEXT YEAR IS THAT WE WOULD ADDITIONALLY HAVE IN THE BUDGET THE 102 THAT WE HAD PUT IN THIS YEAR. IN OTHER WORDS, I GUESS I'M GETTING AT, WHAT IS A RECURRING AMOUNT IN '25 THAT ALSO IS IN A PAY PROGRAM AND WHEN IT GETS PUT IN THERE, IT IS IN THERE. I WILL MAKE AN EDITORIAL COMMENT. I AM SITTING HERE LOOKING AT THESE COSTS AND COMPARING THEM TO THE COST OF REDOING STREETS IN THE SUBDIVISION AND I'M TRYING TO SEE HOW MANY SUBDIVISIONS I'M PUTTING INTO THE PAY PROGRAM INSTEAD. THAT WAS MY EDITORIAL

COMMENT. >> THAT IS A GREAT QUESTION. I SHOULD'VE HIT ON THE TOTAL ASPECT OF THIS TABLE. YOU ARE RIGHT. THESE NUMBERS OUT UP. THE TOTAL NET COST OF THIS IMPLEMENTATION OF 3.2 MILLION IS 1.5 MILLION. AS I ALLUDED TO ON FRIDAY, I WILL HIT ON A MORE LATER. OUR LEVEL OF CONFIDENCE BEING ABLE TO IMPLEMENT THE FISCAL YEAR '26 PAID PROGRAM IS REALLY HIGH RIGHT NOW. BECAUSE OF THE PEOPLE IN YOUR A BUDGET THAT IS MAXIMIZING THE PROPERTY TAX SIZE -- SIDE SO WE ARE INTENTIONALLY PREPLANNING TO UTILIZE THOSE DOLLARS IN FISCAL YEAR '26. THINK ABOUT WHAT WE ARE DOING HERE. WE HAVE

[01:50:04]

YOUR POINT IS WELL TAKEN FOR THE FACT THAT WE HAVE PAID OFF DEBT EARLY AND THAT MINIMIZES THE IMPACT IN OUR ABILITY TO DO THIS, NOT JUST NEXT YEAR, BUT POTENTIALLY THE HEREAFTER. HAD WE NOT PAYING THAT OFF EARLY, THAT 1.5 WOULD BE A MUCH BIGGER

NUMBER. >> 100%. IF I WAS NOT PROPOSING FREEZING POSITIONS, THAT NUMBER WOULD BE EVEN GREATER. IF WE CAN DECREASE THE ONE-TIME EXPENDITURES, THAT NUMBER WILL BE GREATER. WE WANT TO DO OUR PART TO RECALIBRATE. TO FOCUS

MORE CASH ON WAGES. >> IT IS IMPORTANT TO POINT OUT THAT PAYING OFF THE DEBT EARLY HAS A RIPPLE EFFECT IN OTHER PARTS OF THE BUDGET. WE ARE SEEING THAT HERE.

>> RIGHT. 100%. >> I HAVE A QUESTION. WE WILL GET TO MARKET VALUE, 90% OF MARKET. IN 2026. THAT VALUE, 90% IS THE 2023, 2024 STUDY. WOULDN'T THAT BE A LITTLE FURTHER BEHIND? AROUND 85% OF THE MARKET?

>> I APPRECIATE THE IDEA. COMING FROM THE '23 FOUR STUDY. ABSENTLY CORRECT, THE MARKET WILL CONTINUE TO SHIFT AWAY FROM US. RIGHT? NOW, I THINK IT MIGHT'VE BEEN JAN THAT ASKED ME THIS QUESTION IN OUR MEETING. I DON'T THINK THAT THE MARKET IS GOING TO GET AWAY FROM US FOR THE EXTENT THAT HAS FOR THE LAST FOUR YEARS. IF WE WENT FROM BEING 5% BEHIND MARKET FOUR YEARS AGO, TO 15% BEHIND MARKET NOW, I DON'T SEE THAT FOUR YEARS FROM NOW WOULD BE THAT MUCH OF A SWING. THERE IS WITHOUT A DOUBT A CONTINUOUS SHIFT THAT THE CITIES WILL DO THE OWN COST-OF-LIVING ADJUSTMENTS ON THEIR OWN COMPARISONS BECAUSE WE MIGHT BE COMPARING OURSELVES TO WHATEVER AND THEY ARE OVER THERE COMPARING THEMSELVES TO SAN ANTONIO, BURNING, CITIES THAT HAVE EVEN MORE MONEY THAN THEY DO. EVERYBODY IS ALWAYS GOING TO TRY AND DO THE BEST THAT THEY CAN. IN OUR UNFORTUNATE REALITY, WE DON'T HAVE THE GROWTH THAT OTHER COMMUNITIES HAVE, WHAT WE ARE ABLE TO DO IS NOT AS MUCH. NOT AS MUCH IS WHAT OTHER COMMUNITIES CAN. DID YOU WANT TO ASK A QUESTION?

>> A COMMENT. WE ARE SHIFTING RESOURCES FROM ONE AREA TO ANOTHER WITHOUT RESOLVING THE UNDERLYING FINANCIAL IMBALANCE.

SPECIFICALLY, YOU MADE A POINT THAT THE THREE THINGS THAT ARE MOST IMPORTANT TO EMPLOYEES ARE WAGES, HEALTH BENEFITS AND RETIREMENT. WE ARE TALKING ABOUT AFFECTING RETIREMENT WHEN ALSO FOR WHAT YOU PRESENTED, IT IS NOTED IN 2019, WE BEGAN PROVIDING BETTER HEALTH BENEFITS AND WE STILL CONTINUE TO SEE A HIGHER INCREASE IN VACANCIES. IF WE MAKE THESE CHANGES TO THE RETIREMENT SYSTEM, HOW DOES THAT AFFECT OUR ABILITY TO RETAIN AND RECRUIT, NOT ONLY FOR FIRE AND POLICE ABOVE FOR CIVILIAN POSITIONS WHEN YOU HAVE KEN WHO

[01:55:03]

>> I HAVE A SLIDE LATER IN THE PRESENTATION THAT KIND OF SHOWS HOW WE COMPARE TO THESE OTHER CITIES AND IF IT IS OKAY WITH YOU, I WILL RESERVE MY ANSWER TO YOUR QUESTION UNTIL WE GET TO THAT LIGHT, IT WILL MAKE MORE SENSE WHEN WE GET TO THAT SLIDE AND YOU CAN SEE WHERE WE STAND AND TO YOUR POINT ABOUT IN SPITE OF MAKING THESE CHANGES TO HEALTH INSURANCE PREMIUMS SINCE 2019, WE ARE STILL SEEING THE INCREASES IN VACANCIES, THAT JUST PROVES THAT PEOPLE ARE NOT STAYING OR THEY AREN'T COMING BECAUSE OF THE HEALTH INSURANCE PART OF IT. WE KNOW FROM EXIT INTERVIEWS THAT BACK IN THAT TIMEFRAME, PEOPLE WERE LEAVING AND I'M SURE THE FOLKS IN THE ROOM CAN BACKUP THIS STATEMENT, WE DID LOSE FOLKS STRICTLY BECAUSE OF THE HEALTH INSURANCE PLAN THAT WE HAD AT THE TIME.

WHEN WE MADE THE SHIFT TO HIGH DEDUCTIBLE PLANS, WE LOST A LOT OF PEOPLE DO TO THAT CHANGE. IT HAD NOTHING TO DO WITH WAGES.

SOME FOLKS ARE SAYING THAT I WILL MAKE LESS MONEY OUT ELSEWHERE BUT BECAUSE THEY OFFER A BETTER HEALTH PLAN, IT MAKES BETTER SENSE FOR THEIR FAMILY SITUATION. SO, IN ONE WAY, YES, IT SHOWS THAT IS AN ISSUE. IN ANOTHER WAY, IT SHOWS THAT FOLKS MAKE IT ABOUT WAGES. RECENTLY, THE FEEDBACK THAT WE RECEIVED IS MORE CENTERED AROUND WAGES, NOT SEEING AS MUCH, IT HAS NOT PLAYED A FACTOR. WHAT FOLKS ARE TELLING US, THERE IS MORE EMPHASIS ON REASON OF LEAVING FOR WAGES DOCUMENTED VERSUS HEALTH BENEFITS. RIGHT? ONE OF THE THINGS TO KEEP IN MIND, AS WE HAVE THIS CONVERSATION ABOUT BUCKETS, HEALTH FUND IS ITS OWN FUND. AND SO, BECAUSE OF WHERE IT IS AT WITH ITS FUND BALANCE, THAT ALLOWS US THE ABILITY TO TAKE RISKS , SUCH AS THE ONE WE WOULD LIKE TO LOOK AT DOING NEXT YEAR WHICH IS IMPLEMENTING THE EPO PLAN. SEPARATE FROM GENERAL FUNDS AND UTILITY FUNDS, ET CETERA. I THINK IT IS IMPORTANT TO DISTINGUISH THAT NOT ALL FUNDS ARE CREATED EQUAL AND WE CANNOT USE MONEY FROM ALL FUNDS FOR DIFFERENT THINGS.

WE CANNOT USE MONEY ON THE HEALTH FUND TO PAY FOR WAGE.

THE MONEY IN THE HEALTH FUND CAN ONLY BE UTILIZED FOR MEDICAL CLAIMS AND EXPENDITURES ASSOCIATED WITH HEALTH PLAN.

RIGHT? I THINK THAT IS AN IMPORTANT DISTINCTION TO MAKE.

IT DOES CREATE AN OPPORTUNITY. TO TREAT WHAT WE WANT TO DO WITH THE HEALTH INSURANCE FUND SOMEWHAT IN A VACUUM. BECAUSE THE IMPACTS OF WHAT HAPPENS TO THAT IS A SEPARATE FUND. NOW, IS THERE OVERLAP BETWEEN THE HEALTH INSURANCE FUND AND ALL THE OTHER FUNDS, OF COURSE. HOW IT GETS ITS MONEY IS FROM THE MONEY THAT WE ALLOCATE IN THE GENERAL FUND AND THE UTILITY FUND AND THE HOTEL OCCUPANCY FUND FOR OUR PORTION OF THE PREMIUM. WHAT WAS HAPPENING HISTORICALLY WAS THAT THE CITY WAS NOT TRANSFERRING , I'M TRYING TO BE CAREFUL WITH HOW I WORD IT. THE REALITY IS THIS, I'M LOOKING AT WESLEY BECAUSE I AM APOLOGIZING TO YOU WITH MY LOOK. THE CITY WAS NOT TRANSFERRING ENOUGH MONEY FROM THE GENERAL FUND TO THE HEALTH INSURANCE FUND WHICH IS WHAT LED TO THE DECLINE OF THAT HEALTH FUND. BECAUSE YES, THE CITY COULD VERY EASILY SAY, WE WILL PUMP LESS MONEY TO OUR HEALTH FUND SO THAT WE CAN KEEP MORE MONEY IN THE GENERAL FUND TO PAY FOLKS BETTER. BUT THEN YOU END UP WHERE WE WERE IN 2019 WITH $1.5 MILLION IN NOT RESERVE WHERE WE ARE NOT PUMPING MONEY THAT NEEDED TO BE PUMPED INTO THE HEALTH INSURANCE FUND. I KNOW THAT IS A LONG ANSWER TO YOUR COMMENT. HOPEFULLY IT PROVIDES A GREATER PICTURE OF THE FUNDS AND HOW MANY KIND OF SHIPS FROM ONE TO ANOTHER. TO YOUR POINT ABOUT IMPACT ON THE TMR S CHANGE, I WILL HIT ON THAT WHEN I SHOW THE SLIDE OF THE COMPARISON BETWEEN OUR TMRS COMPARED TO OTHER CITIES. WITH THAT, I WILL

[02:00:05]

WE DID NOT BECOME A 2-1 CITY UNTIL 51. WE DID NOT HAVE THAT CONTRIBUTION RATE UNTIL 1992. YOU CAN SEE THE PROGRESSION OF THE CITY BEING WITH TMRS AND WITHOUT HAVING TO GO BACK, A LOT OF IT HAD TO DO WITH FINANCES GETTING BETTER WITH THE CITY. THEY STARTED ADDING THESE ELEMENTS TO THE PLAN.

WHAT DOES THE PLAN LOOK LIKE TODAY FOR THE CITY OF VICTORIA? WE ARE AT A 6% CONTRIBUTION RATE. I SHOULD'VE ADDED A SLIDE TO THIS BUT I DIDN'T. UNDER THE MENU OPTIONS FOR TMRS, IT CAN BE 5%, 6%, OR 7%. ONCE THE CITY CHOOSES WHICH PERCENTAGE, IT WILL PICK THE MATCHING RATIO. IT CAN EITHER BE 1-1, 2-1. ON THE UPDATED SERVICE CREDIT PART, THE CITY CAN OPT TO HAVE IT OR NOT. IF THEY HAVE IT, IT CAN BE 100%, 75%, OR 50%. THE TRANSFER OF DATA SERVICE CREDIT IS THE ON AND OFF SWITCH. THE CITY EITHER HAVES IT WHERE IT DOESN'T. WE DO. WE HAVE A REPEATING COALITION AT 70%. THOSE THAT DO, CAN EITHER HAVE IT AT 70%, 50%, OR 30%. WE ALSO HAVE A SUPPLEMENTAL DEBT INSURANCE FOR LIFE INSURANCE. FOR ACTIVE EMPLOYEES WHICH ARE THE EXISTING EMPLOYEES, THAT EQUATES TO THE ANNUALS WORTH OF SALARY FOR THEM. FOR RETIREES, IT IS $75. NOT EVERY CITY OFFERS THIS LAND. FOR EITHER ONE OF THESE. WE DO. NOW, TO YOUR POINT, ABOUT HOW DOES THIS PUT US COMPARED TO OTHER CITIES, WE WERE TRYING TO FIND A WAY TO ADD VALUE TO EACH OF THESE CATEGORIES AND COME UP WITH A COMPARISON AND IT CAN BE VERY DIFFICULT TO COMPARE APPLES TO APPLES, BECAUSE IT CAN BE ALL OVER THE PLACE WITH THE MENU OF OPTIONS, WHAT CITIES ACTUALLY HAVE WHAT, RIGHT? WE DECIDED TO TRY AND COME UP WITH A SCORE TO RANK

[02:05:05]

EVERYONE KNOWS HE IS MORE DATA DRIVEN THAN I AM. HE HELPED PUT THIS TOGETHER FOR ME. NOW, YOU CAN BE 5%, 6%, OR 7%. WE ATTACHED A VALUE SCORE TO EACH CITY THAT WE ARE COMPARING OURSELVES TO, TO MATCH THAT. WE ADDED A SCORE IF YOU ARE 2-1, 1-1, ET CETERA. I WANT TO SHOW THIS FOR TRANSPARENCY TO EXPLAIN HOW WE CAME UP WITH THE SCORES. IT WILL BE MORE MEANINGFUL TO SEE WHERE WE STAND WITH THIS. USING THAT CRITERIA, WE SCORED 57. EVERY ONE OF THE CITIES ABOVE US IS AT 7% 2-1 CONTRIBUTION. RIGHTFULLY SO, CITIES THAT ARE AT THE 7% RECEIVE MORE POINTS FOR THAT CATEGORY BECAUSE THAT IS A SIGNIFICANT PART OF WHAT WE PAY FOR TMRS, THAT IS THE CONTRIBUTION RATE. AGAIN, ALL OF THE CITIES ABOVE US HAVE 7%.

THE CITIES BELOW US SCORED A LITTLE LESS. FOR EXAMPLE, BRIAN HAS A 75% UPDATED SERVICE CREDIT. NOT 100%. BAY CITY IS AT 5%. AS AN EXAMPLE. CORPUS CHRISTI IS AT 30% AND A COST-OF-LIVING ADJUSTMENT FOR RETIREES. SOME OF THESE CITIES DON'T HAVE THE TRANSFER OF DATA SERVICE CREDIT. SOME DO NOT HAVE THE SUPPLEMENTAL DEATH BENEFIT EITHER. AND SO, IT IS IMPORTANT JUST TO UNDERSTAND THAT YES, WITHOUT A DOUBT, THE BIGGEST THING THAT PEOPLE LOOK AT IS THE CONTRIBUTION RATE AND WE ARE NOT AT 7%, WE ARE AT 6%. ONE OF THE TAKEAWAYS, I HATE TO BE THIS BLUNT ABOUT IT. THERE ARE CITIES THAT ALREADY HAVE A BETTER RETIREMENT PLAN THAN WE DO BECAUSE THEY CAN AFFORD IT.

IT GOES WITHOUT SAYING THAT THOSE CITIES THAT HAVE EXPERIENCED GROWTH HAVE BEEN ABLE TO KEEP UP WITH WAGES.

THERE IS A DIRECT CORRELATION TO THAT AND I WILL SHOW YOU THAT HERE IN A MINUTE. NOW, IF YOU ARE WONDERING, HOW MUCH WOULD IT COST US, IF WE WANTED TO KEEP EVERYTHING AT BAY AND GET UP TO 7%, WE HAVE TO PAY $1.2 MILLION MORE PER YEAR TO TMRS. JUST TO GIVE YOU A SENSE OF THAT. WE ARE ALREADY PAYING $6 MILLION. THAT WILL GO UP TO $7.2 MILLION JUST TO GIVE YOU A SENSE OF THE COST PROHIBITIVE NESTS OF GOING UP TO MAX 7% TO BE AT THE SAME LEVEL AS THE CITIES ABOVE US. RIGHT? SO, WHEN WE TALK ABOUT IMPACT, I HAVE A SLIDE LATER THAT KIND OF GOES INTO TALKING ABOUT HOW THE IMPACT IS INDIVIDUALIZED. AT THE AGGREGATE, I WILL MAKE MY COMMENTS ON THE AGGREGATE HERE, I DON'T HAVE A BETTER SLIDE TO DO A NAP. TO YOUR QUESTION ABOUT WOOD DECREASING THE OUTDATED SERVICE CREDIT MOVE US ALONG THIS LINE, IT WOULD. I HAVE ANOTHER SLIDE THAT SHOWS US DROPPING THREE OR FOUR SLOTS ON THIS RANKING BY DECREASING THE UP DATED SERVICE CREDIT. THE QUESTION IS, WILL WE LOSE PEOPLE BY THIS CHANGE? HOW WILL IT IMPACT OUR ABILITY TO FILL VACANCIES, RIGHT? ONE THING TO KEEP IN MIND, REGARDLESS OF IF WE CHANGE IT OR NOT, THERE WILL ALWAYS BE A CITY THAT HAS A WORSE PLAN THAN US. ONE WAY TO EASILY ASCERTAIN IF WE CAN FILL VACANCIES, LOOK WHAT THEY HAVE DONE. BAY CITY IS AT 5% TO FILL THEIR VACANCIES. RIGHT? WE NEED TO BE MINDFUL OF THE FACT THAT THE PROOF IS IN THE EXISTENCE OF COMMUNITIES THAT HAVE LESSER VALUE RETIREMENT PLANS, REGARDLESS OF WHEN AND IF WE EVER MAKE A CHANGE OR NOT. JUST HOW THERE ARE COMMUNITIES THAT HAVE BETTER RETIREMENT PLANS THAN US BETTER AND IF WE MAKE A

CHANGE. >> IS EVERYBODY BELOW US AT A HIGHER WAGE PER EMPLOYEE? IS THAT CORRECT, CLOSE?

[02:10:05]

>> PART OF A STUDY THAT SUGGESTED THAT THE MARKET WAS UP. WE DID IT LEADING UP TO TONIGHT RUNNING ANY KIND OF REGRESSION MODEL TO LOOK AT, WHAT DOES THAT LOOK LIKE?

>> I DON'T KNOW IF THERE IS A WAGE SCORE. WOULD VICTORIA BE DOWN ON THE BOTTOM? IF THIS WAS NOT A RETIREMENT SCORE BUT A WAGE SCORE IN THE SAME CITIES, WHERE WOULD WE FIT IN THE

RANKING? >> WE WOULD BE AT THE BOTTOM OF THE LIST FOR SURE. THE DATA SUGGEST THAT WE ARE THAT FAR BEHIND MARKET ON THE WAGE SIDE. LET'S TALK ABOUT -- I'M SORRY.

GO AHEAD. >> THE SAD PART IS THAT THESE BENEFITS ARE INVISIBLE. YOU LOOK AT YOUR PAYCHECK, YOU DON'T SEE THE BENEFITS, YOU DO NOT SEE THE COST. HERE WE ARE IN THIS MIDDLE-OF-THE-ROAD RANKING. IT'S INVISIBLE. DO YOU KNOW WHAT I'M SAYING? THE EMPLOYEES ARE NOT AWARE UNTIL WE BRING IT TO THEIR ATTENTION WITH THIS DISCUSSION.

>> I WILL SAY, I THINK EMPLOYEES ARE VERY WELL AWARE OF THEIR BENEFITS AND IT IS CERTAINLY, THERE ARE ASPECTS OF THE BENEFITS THAT ARE NOT AS TALKED ABOUT, UPDATED SERVICE CREDIT BEING ONE OF THEM. WE LEARNED THROUGH THIS EXERCISE THAT MANY EMPLOYEES DID NOT KNOW WHAT IT WAS OR HOW IT WORKED, THAT IS OKAY. I WOULD SAY THAT THERE ARE ELEMENTS THAT UNLESS YOU ARE PUT IN A SITUATION THAT FORCES YOU TO GET INTO THE WEEDS OF IT, YOUR LEVEL OF EXPOSURE TO IS JUST AT THE SURFACE LEVEL, WHEN YOU ARE LOOKING AT TMRS, THE ONLY THING THAT GETS TALKED ABOUT IS THE 7% ASPECT OF IT, NOBODY GOES INTO THE DETAILS OF SERVICE CREDIT OR ANYTHING ELSE.

>> I WOULD ARGUE THAT AND SAY THAT IT DEPENDS ON IF IT IS A CIVILIAN POSITION VERSUS THOSE THAT ARE PD, FIRE, EMS, THEY ARE ACUTELY AWARE OF THE UPDATED SERVICE CREDIT HOURS BECAUSE OF THEIR ABILITY TO MOVE TO A DIFFERENT DEPARTMENT

OR MUNICIPALITY. >> THEY ARE MORE AFFECTED BY

THAT. >> I WILL GET TO THAT. FROM MY EXPERIENCE IN MY CONVERSATIONS THAT I'VE HAD IN THE LAST FEW MONTHS, THERE ARE A LOT OF FOLKS THAT ARE LEARNING ABOUT THE UPDATED SERVICE CREDIT FOR THE FIRST TIME. THE AGGREGATE, PUBLIC SAFETY FOLKS ARE MORE ACUTELY AWARE OF SHIFTS IN THE ENVIRONMENT, 100%, THEY HAVE THE BENEFIT OF BEING STRUCTURED IN THE ASSOCIATION AND HAVING STATE LEADERSHIP WITHIN THOSE ASSOCIATIONS TO GIVE MORE RESOURCES TO THEM TO EDUCATE THEM ON HOW WE COMPARE TO OTHER CITIES. AS THE AGGREGATE, POLICE AND FIRE PERSONNEL OR MORE KNOWLEDGES WITH WHERE WE STAND WITH WAGES, THEY HAVE BENEFITS AND GREATER RESOURCES THAT KEEP THEM UP TO SPEED ON THAT. ALSO, THE REALITY THAT UNLIKE CIVILIAN POSITIONS, PUBLIC SAFETY POSITIONS, THIS IS THE OVERGENERALIZATION, IT IS TO MAKE A POINT. PUBLIC SAFETY POSITIONS OUT OF THE CIVILIAN POSITIONS ARE REALLY THE ONLY ONES THAT WE LOSE TO OTHER CITIES. YES, EXECUTIVES, WE MOVE ON TO DIFFERENT CITIES. IF WE LOOK AT PUBLIC WORKS, FOR AN EXAMPLE, ALL OF THE VACANCIES AT PUBLIC WORKS, WE ARE NOT LOSING PUBLIC WORKS EMPLOYEES, WE ARE LOSING THEM JUST TO OTHER JOBS IN OUR COMMUNITY AND REGION. I THINK THE FACT THAT SPECIFICALLY WITH POLICE AND FIRE, THEIR CAREER PATH DOES HAVE THEM LOOKING AT HOW DO OTHER CITIES PAY, WHAT ARE THE OTHER BENEFITS I CITIES OFFER, THEIR CAREER PATH FORCES THEM TO ONLY EXPLORE MOVING TO A DIFFERENT MUNICIPALITY OR COUNTY SHERIFF'S DEPARTMENT OR SOMETHING TO THAT EFFECT, IF YOU ARE A PARKS MAINTENANCE WORKER, YOU CAN GO WORK ANYWHERE. IF YOU ARE AN ACCOUNTANT IN THE FINANCE DEPARTMENT, YOU CAN DO ACCOUNTING WORK ANYWHERE. I THINK THAT REALITY CREATES THIS ENVIRONMENT WHERE POLICE AND

[02:15:01]

BUT, I WANT TO TALK ABOUT HOW MUCH MONEY IT COSTS US TO MAINTAIN OUR EXISTING RETIREMENT BENEFIT AND THE IMPACT IT HAS ON OUR BUDGET AND OUR RATE. EVERY JUNE, WE RECEIVE A RATE LETTER FROM TMRS. IN ESSENCE, IT SAYS THAT THIS IS YOUR RATE FOR THE UPCOMING CALENDAR YEAR. IT IS CALENDAR YEAR BASED. WE'VE ALREADY RECEIVED THE LETTER FOR WHAT THE RATE WOULD BE IN 2025. WHICH IS THE RATE THAT IT WOULD BE IF NOTHING CHANGES. NOW YOU ARE SEEING THIS LINE TREND UP BETWEEN 2022 AND 2025 FOR A NUMBER REASONS. ONE, WE STARTED IMPLEMENTING THE COMPENSATION PLAN IN 2021 AND THERE IS A DIRECT CORRELATION BETWEEN PAYING HIGHER WAGES AND HAVING A HIGHER LIABILITY WITH YOUR RETIREMENT BECAUSE IT IS ALL PERCENTAGE BASED. OF OUR EMPLOYEES ARE MAKING MORE MONEY, AS THEY SHOULD, THEN THE LIABILITY ON THE RETIREMENTS I WILL GO UP BECAUSE YOU ARE MAKING MORE MONEY. NOW YOU ADD THE UPDATED SERVICE CREDIT THAT UPDATES THEM FOR THEIR ENTIRE CAREER AND INCREASES THE VALUE OF THE UPDATED SERVICE CREDIT.

SO THE BIG TAKE AWAY HERE, WE ARE TRENDING UP. THE BIG TAKE AWAY IS THAT WE WILL CONTINUE TO TREND UP, EVEN IF NOTHING CHANGES, WE WILL TREND UP THERE IS A POSITIVE CORRELATION WITH PAYING FOLKS MORE MONEY IN THE RATE GOING UP DEPENDING ON WHAT WE DO OR DON'T DO WITH THE UPDATED SERVICE CREDIT. THE OTHER FACTOR OF PLAYS THAT THEY GO THROUGH STUDIES EVERY FOUR YEARS. MANY OF YOU ARE AWARE THAT I SERVED ON THE TMRS BOARD FOR 6.5 YEARS. MY LEVEL OF EXPOSURE AND UNDERSTANDING OF THIS IS DIFFERENT THAN ANOTHER CITY MANAGER SOMEWHERE ELSE. I THINK THAT IS THE VALUE OF US HERE. THE 2023 STUDY SUGGESTED AND WAS PART OF THE REASON WHY RATES WENT UP SLIGHTLY IN 2024.

THESE STUDIES LOOK AT WHAT YOUR EMPLOYMENT BASE LOOKS LIKE, IS THE MONEY THAT YOU ARE PUMPING INTO YOUR RETIREMENT PLAN SUFFICIENT TO COVER THOSE LIABILITIES? TMRS REQUIRES YOU TO PRE-FUND THEM. IF WE ARE BEHIND IN KEEPING UP WITH UNFUNDED LIABILITIES, TMRS WILL PROPOSE A HIGHER RATE. THIS INCREASE IN THE RATE FOR US OVER THE LAST TWO OR THREE YEARS IS OUR OWN FAULT. RIGHTFULLY SO. INCREASING WAGES AND THE RESULT OF THAT STUDY IN 2023. THE NEXT ONE WILL BE IN 2027. TO GIVE YOU SOME SPECIFIC EXAMPLES ABOUT WHAT IT LOOKS AT, IT LOOKS AT THE EXPECTED LIFE. EVERY TIME TMRS GOES THROUGH THE STUDY, EXPECTED LIFE MOVES. PEOPLE ARE LIVING LONGER. MORE YEARS OF PAYING A MONTHLY RETIREMENT CHECK. IF SOMEBODY IS LIVING LONGER, THEN LIABILITY GOES UP BECAUSE NOW, YOU HAVE TO COME UP WITH CASH TO PAY FOR ALL THOSE EMPLOYEES THAT ARE LIVING LONGER. WHICH IS GRAY BUT THERE IS A $THAT COMES WITH THAT. TMRS WILL GO THROUGH ANOTHER STUDY IN 2027.

THIS IS JUST MY OPINION, TAKE IT FOR WHAT IT IS WORTH, I SUSPECT AND FULLY EXPECT THAT IN THAT STUDY IN 2027 HE WILL RECOMMEND ANOTHER INCREASE IN RATES, FOR EVERYBODY. JUST BECAUSE OF THE CHANGES IN WHAT'S GOING ON. WE FIRST SEE THIS RATE CONTINUING TO CLIMB UP, THIS IS VERY IMPORTANT. I KNOW THAT FOLKS WILL NOT LIKE WHAT I'M ABOUT TO SAY. IT'S NOT MY JOB TO SAY OUT LOUD WHAT PEOPLE WANT TO HEAR. IT'S MY JOB TO CONVEY IF I FIRST SAY AN ISSUE BREWING. I PERCEIVE THE ISSUE BREWING OVER THE NEXT TWO OR THREE YEARS, WE WILL BE PUT AT A CROSSROADS OF HAVING TO BE ABLE TO MAKE DECISIONS ON THIS RECALIBRATION OF DOLLARS BETWEEN WAGES AND RETIREMENT.

THIS RATE WILL ONLY GO UP. IF I GO BACK TO THE HISTORICAL SLIDE

[02:20:02]

CITIES STOPPED OFFERING AFTER THE RECESSION OF 2008 BECAUSE IT WAS COST PROHIBITIVE FOR CITIES TO KEEP UP WITH THE RATES. WHEN YOU DON'T HAVE THE CASH TO AFFORD THE RATE, YOU HAVE TO FOR THE BENEFIT. TMRS HAS TRIED TO FIND WAYS TO MAKE IT EASIER FOR CITIES TO ENHANCE THIS BENEFIT. THE UNINTENDED CONSEQUENCES FOR EVERYBODY WAS THAT THE ADOPTION HELPED SAVE SOME MONEY. IT DOES NOT CHANGE ANYTHING. WE HAVE NOT TALKED ABOUT IT BECAUSE IT IS NOT A POSITIVE OR NEGATIVE IMPACT ON

[02:25:03]

18% OF $100,000 IS 18,000. THAT IS INITIALLY GREATER THAN 18% OF 30 GRAND. IF THAT EMPLOYEE HAS BEEN WITH US FOR '20 YEARS, THE UPDATED SERVICE CREDIT WERE BONUS ASSUMES THAT THE EMPLOYEE WOULD RECEIVE $18,000 PER YEAR INTO THEIR ACCOUNT FOR THE ENTIRE DURATION OF THEIR '20 YEAR CAREER. NOW, NOT EVERYBODY PROGRESSES THROUGH THE ORGANIZATION TO THAT SAME EXTENT. THAT IS WHY THE IMPACT OR VALUE OF THE UPDATED SERVICE CREDIT VARIES FROM PERSON TO PERSON. THAT IS ONE QUICK EXAMPLE OF HOW THAT SORT OF WORKS. ON THE POSITIVE SIDE, THE UPDATED SERVICE CREDIT IS INTENDED TO REWARD AN EMPLOYEE'S LONGEVITY, IS INTENDED TO REWARD AN EMPLOYEE'S LOYALTY TO OUR ORGANIZATION BY FINANCIALLY REWARDING THEIR RETIREMENT BY PROGRESSING THROUGH THEIR CAREER. RIGHT? NOW, BECAUSE WE HAVE THE TRANSFER UPDATED SERVICE CREDIT, WE ARE DOING THAT FOR FOLKS WHO HAVE ALSO WORKED ELSEWHERE. FOR EXAMPLE, IF WE HAVE SOMEBODY THAT COMES INTO OUR ORGANIZATION HAVING WORKED 10 YEARS SOMEWHERE ELSE, AND THEY HAVE WORKED FOR US FOR THAT THREE-YEAR PERIOD WE ARE UPDATING THE RETIREMENT ACCOUNT TO REFLECT IF THEY RECEIVE THAT VALUE FOR THE THREE YEARS THEY WERE WITH US IN THE 10 YEARS THAT THEY WERE SOMEWHERE ELSE. THIS IS A VALUABLE RECRUITMENT TOOL AND I WOULD NOT RECOMMEND TOUCHING IT. IT IS AN EXTREMELY VALUABLE TOOL BECAUSE NOT EVERY CITY HAS A TRANSFER OF DATA SERVICE CREDIT. IT IS EXACTLY WHAT THE UPDATED SERVICE CREDIT IS. IT ACCOUNTS FOR YEARS THAT SOMEBODY MIGHT'VE WORKED SOMEWHERE ELSE. SO, AGAIN, THE AMOUNT OF THE UPDATED SERVICE CREDIT THAT HITS EVERY JANUARY DEPENDS ON THIS HYPOTHETICAL COMPARISON OF WHERE THEY ARE NOW IN COMPARISON TO THEIR ENTIRE CAREER. THESE ARE SOME VERY SIMPLE EXAMPLES PROVIDED THAT SHOW THE HYPOTHETICAL ACCOUNT BALANCE OF 100 GRAND, 80 AND SHOWING THE DIFFERENCE OF '20,000 IN THE UPDATED SERVICE CREDIT BONUS EQUATING TO '20 GRAND. THAT IS WHAT THE

[02:30:01]

THE EMPLOYEE THAT I JUST DESCRIBED THAT STARTED AT $30,000 PER YEAR PROGRESSED TO MAKING $100,000, THAT IS NOT EVERYBODY STORIES, SOME RETIRE MAKING $36,000 PER YEAR. AND SO THE VALUE OF THAT UPDATED SERVICE CREDIT FOR THAT EMPLOYEE IS NOT AS SIGNIFICANT AS THE EMPLOYEE THAT PROGRESSED UP TO MAKING SIX FIGURES, RIGHT? THERE ARE A LOT OF SCENARIOS IN BETWEEN. THOSE ARE JUST SOME EXTREME EXAMPLES OF SORTS. BECAUSE THAT IMPACT IS INDIVIDUALIZED, WE'VE ENCOURAGED EMPLOYEES TO SPEAK DIRECTLY TO TMRS BECAUSE THEY ARE BETTER VERSED IN EXPLAINING IT AND UNDERSTANDING THE IMPACT. WE HAD ANTHONY MILLS HERE IN PERSON ON JUNE 11TH AND THEY PLAN TO COME BACK ON THE 11TH AND 12TH AND WE HAVE OPENED UP OPPORTUNITIES FOR EMPLOYEES TO SPEAK TO THEM SO THEY CAN UNDERSTAND WHAT THE IMPACT IS AND THEY CAN BE EDUCATED ON HOW TO MAKE UP SOME OF THOSE DIFFERENCES. ONE OF THE THINGS THAT IS HARD TO ACCOUNT FOR, IS THAT AT THE END OF THE DAY, THIS IS A MASS SITUATION. WE DECREASE THE UPDATED SERVICE CREDIT AND THE EMPLOYEE WILL RECEIVE 1000 CREDITS LESS. THEY CAN HELP DESCRIBE HOW TO MAKE UP THAT $10,000. WE HAD AN EMPLOYEE THAT MET WITH ANTHONY AND IT WAS GOING TO HAVE A SIGNIFICANT IMPACT TO THIS. AND REALIZE THAT IF THEY WORKED A FEW EXTRA MONTHS BEYOND WHAT THEY WERE ENVISIONING, THEY CAN MAKE UP THAT DIFFERENCE OR THEY CAN LEARN THROUGH THIS PROCESS THAT IT MAKES SENSE FOR THEM TO WAIT UNTIL JANUARY OR UNTIL A BIRTHDAY TO RETIRE TO MAXIMIZE A RETIREMENT. A MORE EDUCATED EMPLOYEE WILL MAKE BETTER DECISIONS ON THE TIMING OF THEIR RETIREMENT. I SPOKE TO ANOTHER EMPLOYEE THAT WAS LOOKING TO RETIRE ON A PARTICULAR NOVEMBER AND THANKS TO THIS PROCESS HAS REALIZED, I SHOULD JUST WAIT UNTIL JANUARY BECAUSE WHEN THE MATHEMATICAL CALCULATION ON THE RETIREMENT CHECK IS BASED OFF OF YEARS THEY HAVE LEFT, IT BECOMES A GREATER MONTHLY CHECK IF THAT NUMBERS LESSENED BY ONE. THERE ARE A LOT OF DIFFERENT THINGS AT PLAY HERE. FOLKS NEED TO TALK TO TMR S. AGAIN, I AM NOT OBLIVIOUS TO THE REALITY THAT THIS WILL HAVE A NEGATIVE EFFECT ON SOME EMPLOYEES. NOT ALL. WE HAVE DECIDED THAT TO HELP MITIGATE FOR THE FOLKS THAT THE IMPACT WOULD BE MINIMAL, LET'S OFFER AN OPPORTUNITY FOR AN EMPLOYEE TO START UP A 457 RETIREMENT PLAN IF THEY DON'T HAVE ONE OR WE HELP INCREASE THE BALANCE IN THEIR PLAN BY GIVING THEM THE OPTION TO PICK THAT DURING OPEN ENROLLMENT COMING UP IN THE FALL. NOW, SIMILAR TO THE UPDATED SERVICE CREDIT, THIS CONTRIBUTION AND CREDIT VARIES ACROSS THE ORGANIZATION. FOR THE EMPLOYEE THAT IS EXPERIENCING A NEGATIVE IMPACT TO THEIR RETIREMENT WITH THIS CHANGE IN UPDATED SERVICE CREDIT, THIS WILL NOT DO MUCH TO HELP THAT IMPACT. IF YOU'RE AN EMPLOYEE THAT IS NOT IMPACTED AT ALL, OR VERY MINIMALLY IMPACTED, PUTTING YOU ON A PATH TO SET UP A 457 WILL

[02:35:01]

THIS IS STILL A LITTLE BIT LESS THAN THE ONE THAT WAS PROPOSED BY ABOUT HALF A PERCENTAGE POINT. UNDER THIS SCENARIO, FOR A CIVILIAN EMPLOYEE, NOTHING CHANGES. A CIVILIAN EMPLOYEE WOULD STILL RECEIVE 3% ACROSS THE BOARD AND WOULD STILL GET TO THE 90% MARKET IN FISCAL YEAR '26 UNDER THE ALTERNATIVE OPTION BECAUSE WE HAVE LESS CASH, BECAUSE WE ARE NOT PRODUCING THE SAVINGS FROM THE UPDATED SERVICE CREDIT AND THE SAVINGS FROM DECREASING THE RATE, FOR PUBLIC SAFETY, IT WOULD BE 3% ACROSS THE BOARD INSTEAD OF FIVE AND IT WOULD BE A 1% STEP IN '25 INSTEAD OF HALF. IT WOULD REACH 87% OF MARKET INSTEAD OF 90. IT IS STILL AN INCREASE IN PAY FOR POLICE AND FIRE UNDER THIS ALTERNATIVE OPTION BUT NOT AS MUCH BECAUSE WE ARE NOT PRODUCING THE SAVINGS FROM REDUCING THE UPDATED SERVICE CREDIT. STILL A VIABLE OPTION.

QUITE FRANKLY, THE ONLY REASON IT IS A VIABLE OPTION IS BECAUSE OF WHERE WE ENDED UP LANDING WITH WHAT I SHARED ON FRIDAY WHICH IS MAXIMIZING AND SHIFTING DOLLARS AND SO ON AND SO FORTH. IF YOU'D ASKED ME A MONTH AGO IF THERE WAS ANY OPPORTUNITY FOR A VIABLE ALTERNATIVE OPTION, I WOULD TELL YOU NO. AT THE TIME, WE THOUGHT IT WAS GOING TO BE IN THE NEGATIVE. RIGHT? THERE HAS BEEN A POSITIVE OUTCOME FROM THIS REALIZATION IN THE POSITIVE. WHICH IS A VIABLE ALTERNATIVE OPTION. AGAIN, PROS AND CONS WITH THOSE OPTIONS, RIGHT? WHAT DOES THAT LOOK LIKE FOR POLICE AND FIRE? THEY ARE THE ONLY ONES I WOULD BE IMPACTED BY THAT ALTERNATIVE OPTION. CURRENT PAY FOR POLICE UNDER THE PROPOSED WHICH IS 90% OF MARKET WOULD SHIFT TO 566,000. ABOUT 87% WOULD MAKE IT GO UP TO 48,983. WE CAN KEEP UP WITH MARKET TO SOME EXTENT.

NOT AS AGGRESSIVE WHICH IS THE RIGHT WORD TO UTILIZE AND DESCRIBE THAT OPTION. STARTING PAY IS AT 50. UNDER THE PROPOSED, IT CAN GO UP TO 54. JUST TO GIVE YOU A SENSE OF WHAT THE IMPACT WOULD BE ON PAY FOR POLICE AND FIRE UNDER THE ALTERNATIVE OPTION. NOW, COST WISE, IT INCREASES THE 2025 NET COST BY OVER $400,000. AGAIN, THAT IS BECAUSE WE ARE NOT PRODUCING THE ADDITIONAL SAVINGS THAT WOULD COME BY REDUCING THE UPDATED SERVICE CREDIT. WE CAN ABSORB THE

[02:40:01]

IN THE ABSENCE OF NOT BEING ABLE TO SHIFT MONEY NEXT YEAR AND THE ABSENCE OF NOT HAVING THAT CUSHION THAT WE HAVE IN SALES TAX, WE WILL BE FORCED NEXT SUMMER TO RE-EVALUATE IF WE CAN AFFORD FISCAL YEAR '26. THAT'S OKAY, THERE'S NOTHING WRONG WITH THAT, THAT IS HOW WE HAVE GONE ABOUT DOING PAY PROGRAMS HISTORICALLY. IT IS IMPORTANT TO KNOW THAT UNDER THE ALTERNATIVE OPTION WE HAVE TO USE UP MORE CASH IN FISCAL YEAR '25 AND IT INCREASES THE LEVEL OF UNCERTAINTY AROUND WHAT HAPPENS IN 2026. BUT, YOU MIGHT BE OKAY WITH THAT, THAT'S OKAY. SO, I KNOW THIS IS A LOT OF NUMBERS. IT JUST SHOWS THAT DIFFERENCE AND PUTS THE SIDE-BY-SIDE FINANCIAL COMPARISON ON WHAT IS PROPOSED VERSUS THE ALTERNATIVE, YOU CAN SEE THE 838. YOU CAN SEE THAT TOTAL OVER TWO YEARS. THE IMPACT OF THE ALTERNATIVE. IT'S ALL ABOUT MONEY. WHEN WE ARE PRODUCING THAT ADDITIONAL SAVINGS, IT IS MORE MONEY THAT WE ARE ON THE HOOK FOR. THAT'S OKAY. THAT IS WHAT THAT LOOKS LIKE. IN A NUTSHELL. THE TASK FOR YOU IS TO THINK ABOUT THE PROPOSED AS IT HAS BEEN DEVELOPED PLUS THE ALTERNATIVE.

BOTH ARE VIABLE OPTIONS, BOTH OPTIONS WOULD PRODUCE IMPROVED PAY FOR EVERYBODY. THEY ARE DIFFERENT. TO RECAP, THE PROPOSED HAS PUBLIC SAFETY AT 5% AND A 1.5 STEP AND REACHING 90% OF MARKET IN '26. DROPS THE UPDATED SERVICE CREDIT AND THE SAVINGS TO BE ABLE TO PAY FOR IT. I THINK IT IS MY RESPONSIBILITY TO ALSO DOCUMENT THE NEXT POINTS. BILL LOWERS THE TMRS RATE AND IT LOWERS THE UNFUNDED LIABILITY AND UNDER THIS SCENARIO AS YOUR CITY MANAGER , I HAVE HIGH EXPECTATION OF BEING ABLE TO DO THIS INCREASE IN THE PAY PROGRAM OVER TWO YEARS. I INTENTIONALLY -- I HAVE THIS BACKWARDS. WHAT IS SUPPOSED TO BE THIS BULLET IS THAT I DON'T HAVE AS MUCH CONFIDENCE IN THE IMPLEMENTATION OF FISCAL YEAR '26 UNDER THE ALTERNATIVE OPTION. UNDER THE PROPOSED, I DO, BECAUSE OF WHAT I JUST DESCRIBED. THE IMPLEMENTATION CONFIDENCE IS HIGH UNDER THE PROPOSED BECAUSE WE ARE LOWERING THE UNFUNDED LIABILITY AND LOWERING THAT RATE AND THEN FOR THE OUTER YEARS, AGAIN, WE WOULD STILL HAVE TO COME BACK IN FISCAL YEAR '27 AND ADDRESS TENURE AND LONGEVITY FOR CIVILIAN EMPLOYEES. I SHOW THAT HAS A MEDIUM LEVEL OF CONFIDENCE TO BE ABLE TO DO THAT. UNDER THE ALTERNATIVE OPTION, WE KEEP THE UPDATED SERVICE CREDIT 100% AND PUBLIC SAFETY GETS LESS OF A PAY VOTE AND THERE IS STILL A PAY VOTE.

UNDER THIS SCENARIO, WE KEEP THESE SIMILAR TMRS AND SIMILAR UNFUNDED LIABILITY AND THERE IS A HIGH SIGNIFICANCE OF THAT RATE OVER THE NEXT TWO YEARS. MY LEVEL OF CONFIDENCE UNDER THE ALTERNATIVE OPTION DECREASES SIGNIFICANTLY BECAUSE IT GOES FROM HIGH TO MODERATE BECAUSE IF WE DON'T MAKE THE DECISION TO DECREASE THE RATE NOW, WE'LL SEE A INCREASE INTO FISCAL YEAR '26 WHICH DECREASES MY LEVEL OF CONFIDENCE OF BEING ABLE TO DO A DECENT PAY PROGRAM IN '26 WHICH LESSENS MY LEVEL OF CONFIDENCE BEING ABLE TO DO WE NEED TO DO FOR CIVILIAN EMPLOYEES FISCAL YEAR '27 AND BEYOND. BOTH OPTIONS ARE VIABLE OPTIONS. MY PERSPECTIVE IS JUST THAT IT BOILS DOWN TO YOUR INTERPRETATION OF THE IMPLICATIONS AND THE VALUE THAT YOU PLACE ON THE IMPLICATIONS

[02:45:02]

I PLAN ON SENDING YOU A COPY OF THIS PRESENTATION AS WELL AS BACKUP DOCUMENTATION IN CASE YOU ARE INTERESTED IN TAKING A DEEPER DIVE INTO SOME OF THE DATA. I WILL ADVISE THAT IT IS NOT RECOMMENDED. WE CAN TALK ABOUT HIGH-LEVEL IMPACT ON POSITIONS THE WAY WE JUST DID ABOUT POLICE AND FIRE. WE NEED TO BE SENSITIVE TO THE FACT THAT THESE DISCUSSIONS HAVE EMPLOYEES ATTACHED TO THEM. IT'S IMPORTANT FOR US TO HAVE THESE CONVERSATIONS AT THE POSITION LEVEL AND NOT THE PEOPLE LEVEL. IT IS VERY IMPORTANT FOR ME TO VERBALIZE.

WHEN YOU RECEIVE THE DATA, IT IS EASY TO AUTOMATICALLY THINK, OH, I WILL PICK ON KEN. IT'S EASY TO SAY, OKAY, PUBLIC WORKS DIRECTOR, THE DATA SAYS THIS, THAT IS CAN. I DON'T KNOW. WE NEED TO SEPARATE. HEY, I'M JUST CONTINUING IT, YOU'RE GOING TO RETIRE ANYWAY. WHAT'S THE POINT? ANYWAY. THAT IS WHERE I'M AT. THAT'S A LOT OF INFORMATION. I WILL SEND YOU THE PRESENTATION AS WELL AS ANY OTHER DOCUMENTATION THAT I HAVE AND YOU CAN REVIEW THAT I YOUR OWN LEISURE. WE ARE AVAILABLE TO ANSWER ANY QUESTIONS OR CONCERNS THAT YOU HAVE FROM NOW UNTIL THE NEXT MEETING. I'M HAPPY TO ANSWER ANYTHING ELSE OR ADDRESS ANYTHING ELSE NOW, THAT IS ALL I'VE GOT FOR NOW.

>> I IMAGINE THAT THE TMRS RETIREMENT THEME WILL NOT BE A UNIQUE DISCUSSION JUST FOR VICTORIA. BASED UPON THE NUMBERS. WE WILL BE DEALING WITH SOME OF THIS, I IMAGINE IN

THE NEAR FUTURE. >> 100%. THE CITIES THAT INCREASE PAY OVER THE LAST FOUR YEARS, WE KNOW THEY DID, WE ARE FURTHER BEHIND IN MARKET. THOSE WILL GO UP SIGNIFICANTLY AS WELL. WE HAVE ACCESS TO EVERY RATE LETTER. WE COULD IN THEORY PULL UP THESE RATES FOR OTHER CITIES. TO SHOW HOW THESE RATES ARE GOING UP FOR EVERY OTHER CITY. FOR THEM, THEY CAN OBSERVE THE ADDITIONAL EXPENSE BECAUSE THOSE CITIES ARE GROWING. IT'S DIFFICULT TO COMPARE OURSELVES TO A COMMUNITY THAT CAN RELIABLY RELY ON THE REVENUE EVERY YEAR.

>> UNTIL THEY STOP GROWING? >> YEAH.

>> I HAVE A COUPLE OF QUESTIONS IF NOBODY ELSE DOES.

>> THIS COMPENSATION THAT YOU ARE PROPOSING UNDER THE ORIGINAL PROPOSAL . IN THE ALTERNATE PROPOSAL, IS THAT STILL IN THE ALTERNATE PROPOSAL OR TAKING OUT THE ALTERNATE

PROPOSAL. >> I HAD NOT THOUGHT OF THAT,

[02:50:03]

>> THAT WILL GO FROM 100% TO 50%. WHAT DIFFERENCE WOULD THAT MAKE AND CAN WE DO THAT STUDY? NEW BEAM WE DO HAVE THE RATE, WE DO KNOW WHAT THE RATE WOULD BE IF WE DECREASE IT FROM 75%.

WE DO NOT HAVE EITHER PROGRAM. BASED ON THE SCENARIO. WE CAN DECREASE THE UPDATED SERVICE CREDIT TO 75%. THERE WOULD BE SOME SAVINGS, NOT AS MUCH. IF COUNCIL WOULD LIKE US TO RUN A SCENARIO TO THAT END, WE CAN DO THAT.

>> I WOULD. I BELIEVE IN YOU. >> WHAT IT BEHALF?

>> I PERSONALLY WOULD LIKE THAT. GETTING THAT TO THE FIRE ASSOCIATION AND POLICE ASSOCIATION TO SEE IF WE CAN HAVE A LOOK AT THEM. THEY ARE THE ONES TALKING TO THE TROOPS.

THEY ARE THE ONES ON THE FRONT LINES. THEY ARE THE ONES THAT ARE DECIDING FURTHER GROUP IF IT IS GOOD OR BAD. I UNDERSTAND THAT WE HAVE TO DECIDE IF IT IS GOOD OR BAD FOR THE CITY.

TALKING ABOUT EMPLOYEE RETENTION. THAT WOULD BE SOMETHING THAT WE NEED TO KNOW THEIR OPINION. DOES THAT MAKE

SENSE? >> A 100% MAKE SENSE TO EXPLORE THE 75% AS AN OPTION. WE HAVE TO RUN THE SCENARIO. UP UNTIL TWO WEEKS AGO. THERE WOULD NOT HAVE BEEN ANY VIABLE OPTION. WE FOCUS ON IT BEING AT 100% FOR THE TIME THAT IT TAKES US TO GET IT TOGETHER IN PREPARATION FOR TODAY'S DISCUSSION. IT IS WORTH THE TIME LOOKING AT WHAT THAT WOULD LOOK AT. THAT WOULD NOT HAVE AN IMPACT ON WHAT YOU SEE TONIGHT. I WOULD LOOK COMPLETELY DIFFERENT FROM THE OPTION YOU HAVE SEEN TONIGHT TO MAKE THE MATH WORK. WE CAN DO IT.

>> I HAVE A QUESTION, ANOTHER THOUGHT IN THAT REGARD, WHAT ARE THE BUDGETARY IMPLICATIONS? THANK YOU.

>> THERE WILL HAVE TO BE ADJUSTMENTS BUT NOT AS GREAT.

SORRY. >> NO, YOU ARE FINE

>> I WANT TO TELL YOU THANK YOU, I KNOW THIS IS A LOT TO PUT TOGETHER. I APPRECIATE THE TIME AND EFFORT THAT HAS GONE INTO IT. YOU'RE PRESENTING SOMETHING THAT ULTIMATELY WHAT IMPACT YOU. THANK YOU. MY NEXT QUESTION IS, REGARDING RETIREMENT AND RETIREMENT CONTRIBUTIONS, IS RETIREMENT INVOLUNTARY? OR SOMETHING THAT IS REQUIRED OF ALL EMPLOYEES, AND IF IT IS REQUIRED OF ALL EMPLOYEES, IS THERE AN OPTION FOR US TO MAKE THAT OPT IN OR OPT OUT FOR COST SAVINGS BECAUSE IT IS NOT SOMETHING THAT IS IMPORTANT TO ALL EMPLOYEES, JUST LIKE HEALTHCARE IS NOT IMPORTANT TO ALL EMPLOYEES. CAN WE SEE SOME SAVINGS THERE THAT MIGHT BE

APPLIED? >> NO. TMRS IS EQUALLY APPLIED TO EVERY SINGLE EMPLOYEE. WE CANNOT DIFFERENTIATE AND LEAVE IT UP TO THE EMPLOYEE TO DECIDE. YOU MAKE THOSE DECISIONS. THEY APPLY EQUALLY TO EVERYBODY. YOUR COMMENT DOES

[02:55:02]

TMRS. >> I WOULD LIKE TO SEE WHERE IT DID NOT IMPACT THE UPDATED SERVICE CREDIT. ARE YOU TALKING ABOUT UPDATING THAT TO 50% AND USING THOSE FUNDS? IS THAT WE ARE SAYING? DECREASING THAT AND CUTTING THAT 50% AND THE ADDITIONAL FUNDS THAT THEY SEE. IS THAT WE ARE TALKING ABOUT? I WOULD LOVE TO SEE A WAY FOR THEM TO SAY, I WANT TO HAVE SOME MORE POWER OVER THEIRS. I WANT TO MAKE SURE WE ARE

ALIGNED. >> WHAT I AM SUGGESTING, ON THE TMR S SIDE, THERE IS NO INFLUENCE THERE. THE TMRS SIDE IS WHERE IT IS. THE SAVINGS THAT WOULD BE PRODUCED BY THE UPDATED SERVICE CREDIT ARE BEING SPREAD OUT THROUGH THE IMPLEMENTATION OF THIS PAY PROGRAM. OUT OF THE $3.2 MILLION, 63% OF THAT IS GOING TO PUBLIC SAFETY. THE PAY PROGRAM IS PRIORITIZING POLICE AND FIRE BY HAVING 65% APPLIED TO THEM. DATA BACKS THAT UP. THE DATA BACKS OF THAT POLICE AND FIRE MARKET HAS INCREASED SIGNIFICANTLY OVER THE LAST FOUR YEARS. RIGHT? IT IS IMPOSSIBLE TO PICK AN EMPLOYEE AND SAY, THAT AN EMPLOYEE'S SAVING FROM THEIR CREDIT IS BEING TIED TO THAT PAY INCREASE. SOME EMPLOYEES ARE NOT SEEING THEM NEGATIVE IMPACT BECAUSE THEY DO NOT EXPERIENCE A SIGNIFICANT PAY INCREASE. ONE WAY TO LOOK AT THIS, OFFERING UP A TIDBIT FOR REFLECTION. IF WE KNOW THE FOLKS THAT BENEFIT THE MOST ARE THE FOLKS THAT EXPERIENCE SIGNIFICANT PAY BUMPS, WE KNOW THAT IS LEADERSHIP TEAM MEMBERS, AND POLICE AND FIRE. BECAUSE COMPARATIVELY SPEAKING, POLICE AND FIRE, IN THE ABSENCE OF A PROMOTION, STILL RECEIVE A PAY BUMP BECAUSE POLICE AND FIRE HAVE ALWAYS RECEIVED PAY BUMPS AS PRIORITY OVER CIVILIAN EMPLOYEES. THIS PAY PROGRAM DOES THE SAME. SO, ONE WAY TO LOOK AT IT, WOULD BE IF POLICE AND FIRE, AGAIN, THIS IS THE OVERSIMPLIFICATION AND

[03:00:02]

YOU TO PONDER ON. >> YOU SAID WOULD BE HERE TO SPEAK? JUNE 11TH AND ON THE 11TH AND 12TH.

>> EVERY EMPLOYEE WILL HAVE THE OPPORTUNITY TO MEET WITH THEM AND I DON'T KNOW HOW LONG IT TAKES.

>> THAT IS WHAT WE ARE TRYING TO ACHIEVE. COMMITTED TO TWO OR THREE STAFF MEMBERS ON THERE IS MORE DEPENDING ON WHAT THE

DEMAND IS ON THE SIGN-UPS. >> THIS IS SO INDIVIDUAL. IT IS EVEN IMPOSSIBLE FOR US TO SAY , HEY, WESLEY, YOU WILL IMPACT YOU, I CANNOT EVEN DO THAT. I HAVE TO TELL WESLEY, I DO NOT KNOW IF IT IS IMPACTING YOU OR NOT, THE ONLY WAY TO KNOW FOR

SURE IS IF YOU GO TO TMRS. >> IF THEY ARE WORKING, YOU HAVE THE ABILITY TO BE WITH THEM.

>> WE CAN CERTAINLY MAKE THAT A POINT. AND I WILL MAKE SURE TO MAKE IT VERY CLEAR TO SPECIFICALLY THE CHIEFS. TO

ENSURE THAT TAKES PLACE. >> THANK YOU.

>> YOU KNOW QUITE A BIT OF INFORMATION. JUST A COUPLE THINGS I WOULD SAY. THIS IS NOT JUST PAYING LIP SERVICE. ALL OF US WOULD LOVE TO SEE GETTING TO FULL MARKET VALUE. LET'S KEEP 100%. LET'S GET HIGHER ON THOSE RANKINGS. THE ECONOMIC REALITY THAT YOU POINTED OUT, WE HAVE TO FIGURE OUT WHAT IS THE BEST WE CAN DO. IT'S VERY IMPORTANT, I APPRECIATE YOU POINTING THIS OUT. WHEN WE LOOK AT THIS, WE ARE LOOKING AT THE POSITION BASE IS NOT THE INDIVIDUAL BASIS. YOU DO NOT DRAFT JOB DESCRIPTIONS TO MATCH AN INDIVIDUAL. YOU DRAFT JOB DESCRIPTIONS TO MATCH WHAT DOES THE ORGANIZATION NEED? AND THEN YOU MAKE SURE YOU HAVE THE RIGHT INDIVIDUAL. WE HAVE TO EVALUATE THIS BASED ON POSITIONS WITH THE OVERALL GOOD OF THE ORGANIZATION. AS INDIVIDUALS HERE, THIS INDIVIDUAL IS THERE. WE ARE MAKING DECISIONS THAT WILL BE MORE THAN WHAT IS IMPACTFUL DOWN THE ROAD. WE ALL KNOW THIS. OUR ANALYSIS NEEDS TO BE, WHAT IS THE ISSUE WE ARE TRYING TO ADDRESS? WHAT IS GOING TO BE THE ISSUE. RECRUITMENT AND RETENTION, WHICH OF THESE OPTIONS AND WHICH ONE OF THOSE DO WE FEEL LIKE IS GOING TO HAVE THE BEST IMPACT ON THOSE ISSUES FOR THE OVERALL GOOD OF THE CITY. I THINK THAT IS WHAT IT IS GOING TO BOIL DOWN TO. WE MIGHT HAVE DIFFERENT OPINIONS ON THAT. I KNOW A LOT OF PEOPLE DO. ULTIMATELY, THAT IS WHAT WE ARE TRYING TO DO, FIGURING OUT THE OPTIONS THAT WE HAVE, THE ECONOMIC VIABLE OPTIONS. WHICH ONE LOVE THE BEST IMPACT. NOT SHORT-TERM, BUT LONG-TERM FOR THE CITY. ALL RIGHT. THANK YOU.

YOU SAID AN HOUR, AND YOU SAID TWO. I MEAN THAT JOKINGLY. THIS WAS A LOT OF REALLY GOOD INFORMATION AND THERE WAS A WHOLE LOT IN HERE. WE DO WANT TO SEE THIS. PLEASE SEND IT TO

[H. Executive Sessions:]

I UNDERSTAND THAT WE HAVE A BRIEF EXECUTIVE SESSION.

>> NOT TWO HOURS. >> YOU ARE RIGHT. LET'S SEE.

[03:05:03]

AT 8:15. >> RECESS FOR EXECUTIVE SESSION

* This transcript was compiled from uncorrected Closed Captioning.