Aug 05, 2025 City Council

[00:00:14]

PRESENT. >> COUNCILMAN

KIDDER. >>

HERE. >> COUNCILWOMAN BUTLER.

>> PRESENT.

>> COUNCILWOMAN SCOTT.

>> HERE. COUNCILMAN

LOFFGREN. >> HERE.

>> AND MAYOR CROCKER, HERE.

>> IF YOU WOULD PLEASE RISE AND JOIN ME.

I 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.

>> HONOR THE TEXAS FLAG, I PLEDGE ALLEGIANCE TO THE STATE OF TEXAS, ONE STATE UNDER GOD, ONE AND INDIVISIBLE.

>> THANK YOU. PLEASE BE SEATED.

[1. Announcements/Reminders:]

>>> AGAIN, WELCOME, EVERYONE. WE HAVE A BUSY AGENDA AND JUMP RIGHT INTO ANNOUNCEMENTS AND REMINDERS.

MR. GARZA. GOOD EVENING.

>> I DO HAVE QUITE A BIT FOR YOU AND SO PLEASE BEAR WITH ME.

ON BEHALF OF MUNICIPAL COURT WE REMIND THOSE FOR THE GRANT PROGRAM WILL CLOSE ON FRIDAY AUGUST 15TH AT 5:00 P.M. INFORMATION WORKSHOPS FOR APPLICANTS WILL BE HELD IN THE COURT CHAMBERS AT 107 WEST JUAN LINN STREET ON THE 6TH AND 13TH.

PLEASE VICTOR VICTORIATX FORWARD SLASH.

ON BEHALF OF THE MAYOR'S OFFICE, YES, HE HAS AN OFFICE THOSE INVOLVED WITH AN INTEREST IN CIVIC CAN SERVE. APPLICATIONS FOR THE 2025/2026 SCHOOL YEAR ARE DUE BY AUGUST 31ST WITH A LETTER OF RECOMMENDATION.

FOR MORE VICTORTX 361-485-3030. ON BEHALF OF THE LIBRARY AND WE INVITE THE COMMUNITY TO SIGN UP FOR THE 5K STORYBOOK FUN RUN THAT WILL BE HELD SATURDAY SEPTEMBER 6TH.

THE RUN STARTS IN THE LIBRARY PARKING LOT. REGISTRATION FOR THE FUN RUN STARTS AT $15 PER PARTICIPANT AND INCLUDES YOUR ENTRY INTO THE STORYBOOK COSTUME CONTEST.

ACTIVITY AND TREATS ON THE ROUTE AND FREE T- SHIRT FOR THOSE REGISTERED BY AUGUST 15TH.

VICTORIA.TX. VICTORIA.TX.GOV/FOR WARD50.

ON AUGUST 12TH.

WE WILL SWITCH BACK TO COLOR MEANS.

RESIDENTS WILL NOT LIKELY NOTICE A DIFFERENCE IN TASTE BUT THAT IS POSSIBLE AND DIALYSIS PATIENTS MAY NEED TO CHANGE THEIR PRETREATMENT SCHEMES AND ANYONE CONDITIONING WATER FOR FISH OR AQUARIUMS MAY NEED TO CHANGE THEIR PRETREATMENT PROCESSES AS WELL AND WE, OF COURSE, HAVE PUT OUT THIS NOTICE THAT WE HAVE DONE EVERY YEAR LEADING UP TO FINISHING THAT CHLORINE CONVERSION. AND LASTLY, SOME EXCITING NEWS, THAT WE MADE PUBLIC TODAY IS, OF COURSE, SOME PROMOTIONS, OF COURSE, YOU KNOW THAT THESE PROMOTIONS WERE ACTUALLY ANNOUNCED INTERNALLY EARLY LAST MONTH, BUT NOW THE WORLD KNOWS AND SO HOPEFULLY YOU SAW THOSE ANNOUNCEMENTS TODAY.

I'M HAPPY TO ANNOUNCE THAT GILBERT P. LANA JR. OUR CFO WAS PROMOTED AS WELL AS DARRYL LISAK, OUR ENVIRONMENTAL SERVICES DIRECTOR. BOTH, OF COURSE, HAVE A LOT OF YEARS OF EXPERIENCE WITH US AND IN ADDITION OR ASIDE FROM THAT HAVE A PROVEN TRACK RECORD AND ULTIMATELY SPEAKS VOLUMES TO THE WORK THEY'VE DONE IN OUR ORGANIZATION THAT HAS ENHANCED LIVEABILITY AND HAS IMPROVED THEIR RESPECTIVE OPERATIONS AND SO I'M VERY EXCITED THAT BOTH HAVE ACCEPTED THE CHANGE TO BECOME ASSISTANT CITY MANAGERS AND SO CONGRATULATIONS, GUYS.

THANK YOU.

>> WITH DARRYL'S PROMOTION TO ASSISTANT CITY MANAGER, THAT, OF COURSE, OPENED UP THE DIRECTOR OF ENVIRONMENTAL SERVICES SLOT AND, OF COURSE, THAT WAS AN EASY

[00:05:01]

ABLE TO PROMOTE CHRISTY. WE WANT TO MAKE SURE PUBLIC WORKS IS PUT IN A GREAT POSITION, WHICH I'LL SPEAK TO LATER IN THE BUDGET PRESENTATION. BUT GREG HAS BEEN WITH US FOR A FEW YEARS AS WELL AND CERTAINLY HAS EARNED THE OPPORTUNITY TO BECOME ASSISTANT DIRECTOR.

MUCH OF WHICH WAS HIGHLIGHTED DURING THE BOIL WATER NOTICE.

HE REALLY STEPPED UP AND REALLY LED US THROUGH THAT EFFORT AND SO CONGRATULATIONS TO GREG AND CHRISTY FOR THEIR PROMOTIONS AS WELL.

[2. Public & Employee Recognitions:]

>> ALL RIGHT. THANK YOU, MR. GARZA.

SO THEN WE WILL MOVE ON THEN TO PUBLIC AND EMPLOYEE RECOGNITIONS AND FIRST UP WE HAVE A FARMERS' MARKET WEEK PROCLAMATION.

MISS HILBRICH. >> YES, SIR, WHEREAS VICTORIA FARMERS AND RANCHERS PROVIDE ACCESS TO PRODUCED FOODS THROUGH FARMERS' MARKETS EXPANDING TO ACCOMMODATE THE DEMAND FOR A DIVERSE ARRAY OF PRODUCTS AND WHEREAS OTHER MARKETING OUTLETS PROVIDE INFRASTRUCTURE TO ASSIST IN THE DISTRIBUTION OF FARM AND VALUE- ADDED PRODUCTS, THEREBY CONTRIBUTING APPROXIMATELY 9 BILLION EACH YEAR TO THE U.S. ECONOMY AND WHEREAS FARMERS' MARKETS SERVE AS SIGNIFICANT OUTLETS BY WHICH SMALL TO MEDIUM NEW AND BEGINNING AND VETERAN AGRICULTURAL PRODUCERS MARKET AGRICULTURAL PRODUCTS, GENERATING REVENUE THAT SUPPORTS THE SUSTAINABILITY OF FAMILY FARMS AND THE REVITALIZATION OF RURAL COMMUNITIES NATIONWIDE, AND WHEREAS THE VICTORIA CITY COUNCIL RECOGNIZED THE IMPORTANCE OF EXPANDING MARKETING IES THAT ASSIST AND ENCOURAGE THE NEXT GENERATION OF FARMERS AND RANCHERS, GENERATE FARM INCOME TO HELP STIMULATE BUSINESS DEVELOPMENT AND JOB CREATION, BUILD COMMUNITY CONNECTIONS THROUGH RURAL AND URBAN LINKAGES AND MORE WHEREAS THE VICTORIA FARMERS' MARKET HAS BEEN IN OPERATION FOR OVER 35 YEARS INCLUDING 9 YEARS AS AN OFFICIAL PROGRAM OF THE FOOD BANK OF THE GOLDEN CRESCENT PROMOTING UNPRECEDENTED GROWTH IN THE MARKET AS WELL AS AN INCREASED ACCESS TO FRESH LOCALLY GROWN FOODS FOR PEOPLE OF THE GREATER VICTORIA AREA. WHEREAS THE FARMERS' MARKET SUPPORTS NEARLY 80 LOCAL FARMERS, FOOD PRODUCERS AND THOSE THROUGHOUT SOUTH TEXAS PROVIDING A YEAR ROUND OPPORTUNITY FOR THOSE TO SELL THEIR WARES TO THE PUBLIC.

NOW THEREFORE I DUANE CROCKER MAYOR OF THE CITY OF VICTORIA PROCLAIM WE GIVE AUGUST 3RD THROUGH 9TH, 205 AS VICTORIA FARMERS' MARKET WEEK IN VICTORIA, TEXAS, TO FURTHER AWARE -- MAKE AWARE THE FARMERS' MARKET'S CONTRIBUTIONS IN ADDITION TO NATIONAL FARMERS' MARKET WEEK, I CALL ON CITIZENS TO CELEBRATE WITH THE PROPER OBSERVANCES AND ACTIVITIES.

>> THANK YOU, MAYOR AND COUNCIL. I DID WANT TO SPEAK FOR JUST A MOMENT ON THE VICTORIA FARMERS' MARKET SO TONIGHT I'M HERE IN MY OFFICIAL CAPACITY AS COMMUNITY ENGAGEMENT DIRECTOR AND MANAGER.

AS MISS HILBRICH READ, THE VICTORIA FARMERS' MARKET HAS BEEN UNDER THE UMBRELLA OF THE FOOD BANK SINCE THE END OF 2015 SO WE'RE COMING UP ON OUR TENTH YEAR. WE ARE CURRENTLY SUPPORTING NEARLY 80 LOCAL FARMS AND SMALL BUSINESSES, MOSTLY FROM VICTORIA COUNTY BUT WE ALSO HAVE VENDORS WHO COME IN FROM DEWITT, JACKSON, GOLIAD, LAVACA AND AS FAR AWAY AS WHARTON, COLORADO, ARANSAS AND OASIS COUNTIES.

THIS FARMERS' MARKET IS OPEN TWICE A WEEK ALL YEAR ROUND EVERY WEDNESDAY, EVERY SATURDAY, THAT IS OVER 100 OPPORTUNITIES EACH YEAR FOR THESE VENDORS TO SELL THEIR PRODUCTS.

WE ARE A PRODUCERS' ONLY MARKET WHICH MEANS YOU ARE NOT ALLOWED TO BUY WHOLESALE BEEF AND TURN AROUND AND PASS IT OFF AS YOUR OWN. IF YOU GROW IT, RAISE IT, OR MAKE IT, THEN YOU ARE ELIGIBLE TO SELL IT AT THE FARMERS' MARKET.

I'M PROUD TO SUPPORTSUPPORT FARMERS AND HOMESTEADERS TRYING TO GET INTO THE GAME BECAUSE WE ARE LOSING OUR FARMERS AT A FASTER RATE THAN WE CAN REPLENISH THEM. I THINK AT LAST YEAR I THINK THE AVERAGE AGE OF THE AMERICAN FARMER WAS 64, DON'T QUOTE ME

[00:10:07]

>> IT'S GOT TO BE CLOSE.

>> AND SO IT REALLY -- IT MAKES ME HAPPY TO SEE SOME OF THE YOUNGER FAMILIES GETTING INTO THE GAME PRODUCING THEIR OWN FOODS AND SEEING THIS MARKET AS AN AVENUE TO SUPPORT THEIR FAMILIES AND MAKE MONEY AND PROVIDE THEIR COMMUNITY WITH FRESH FOODS. NOVEMBER WILL BE TWO YEARS THAT WE STARTED ACCEPTING SNAP AT THE MARKET, THIS IS FORMALLY KNOWN AT FOOD STAMPS AND IN UNDER TWO YEARS WE'VE ALREADY RUN $10,000 IN SNAP TRANSACTIONS.

WE ACTUALLY JUST PARTNERED UP A LITTLE OVER A MONTH AGO WITH A NONPROFIT OUT OF CENTRAL TEXAS CALLED THE SUSTAINABLE FOOD CENTER, WHICH HAS A PROGRAM CALLED DOUBLE UP FOOD BUCKS THAT WILL MATCH A CUSTOMER'S SNAP DOLLARS AT THE MARKET UP TO $30. THAT EXTRA $30 PER DAY, THOSE EXTRA VOUCHERS ARE ONLY TO BE USED ON FRESH FRUITS AND VEGETABLES SO IT IS TO PROMOTE PEOPLE SHOPPING AT THE MARKET FOR FRESH PRODUCE.

OF COURSE, THE WAY THAT SNAP WORKS IS JUST LIKE AT THE GROCERY STORE, THE PICKLES, BREAD, EGGS, HONEY, MEAT, ALL OF THAT IS ELIGIBLE TO BE PURCHASED USING SNAP.

SO I'M VERY PROUD THAT WE ARE BECOMING MORE ACCESSIBLE TO OUR COMMUNITY AND NOT BEING TOO EXPENSIVE FOR SOME PEOPLE WHO MIGHT NOT HAVE THE RESOURCES TO SPEND MONEY AT THE MARKET.

I'M REALLY PROUD OF US ACCEPTING SNAP AND NOW DOUBLE UP FOOD BUCKS SO APPRECIATE YOU GUYS LISTENING TO MY SPIEL TONIGHT AND APPRECIATE THE PROCLAMATION AND IF YOU'D EVER LIKE TO COME OUT AND VISIT US, LIKE I SAID WE'RE OPEN EVERY WEEK ON WEDNESDAYS AND SATURDAYS, AND LOTS OF FRIENDLY FACES SELLING FRESH FOODS. THANK YOU.

>> THANK YOU. SOY THEN LET'S MOVE TO TO B2B WHICH IS OUR MONTHLY KEEP VICTORIA BEAUTIFUL.

MISS YOUKER. WELCOME AND CONGRATULATIONS ON YOUR PROMOTION? THANK YOU VERY MUCH.

THANK YOU, MAYOR AND COUNCIL. WHILE I HAVE THE OPPORTUNITY, I DO WANT TO SAY I'M VERY GRATEFUL FOR THIS NEW OPPORTUNITY AND TO DARRYL, DARRYL'S BEEN WONDERFUL, LEADER, SUPPORTER, AND JUST GREAT ALL AROUND FRIEND TO HAVE WORKING WITH THESE LAST FOUR YEARS AND I THOUGHT I WOULD MISS HEARING HIM FROM ACROSS THE HALL, BUT THEN I REALIZED I DON'T THINK I WILL BECAUSE, YOU KNOW, HE'S GOING TO BE DOWN THE STREET AND WE ALL KNOW DARRYL'S VOICE PROJECTS SO I THOUGHT I WILL STILL HEAR HIM, SO THAT'S A GOOD THING.

OUR BEAUTIFICATION AWARD AND I'VE GOT KIM MCGILL, WHO IS KEEP VICTORIA BEAUTIFUL BOARD MEMBER WHO WILL DO THE HONORS.

>> ALL RIGHT. WELCOME, MS.

MCGILL. >> HELLO, GOOD EVENING, MAYOR AND CITI MEN. ON BEHALF OF KEEP VICTOR YAUFL, EDEN YAKMAN OF HERITAGE MARK BUILDING, WE HONOR THEM BECAUSE THEY ARE NOT JUST A STRUCTURE OF BRICK AND MORTAR BUT A SYMBOL OF PRIDE, CARE AND THOUGHTFUL DESIGN, ONE THAT REFLECTS THE VALUES WE HOLD DEAR IN THE COMMUNITY, BEAUTY, SUSTAINABILITY, ACCESSIBILITY AND A SENSE OF BELONGING. THIS BUILDING WAS BUILT IN 1982 AND THEY WERE ACTUALLY ONE OF OUR FIRST RECIPIENTS OF OUR AWARDS AND HAVE GONE ABOVE AND BEYOND IN MAKING A WELCOMING ENVIRONMENT FROM ITS CLEAN INVITING EXTERIOR TO THE WAY IT SEAMLESSLY FITS INTO THE STREET WE CALL NAVARRO. IT BELONGS THERE.

CONGRATULATIONS AND THANK YOU FOR MAKING OUR CITY A BITTER PLACE TO BE.

>> THANK YOU VERY MUCH. WELL, GOSH, MAYOR AND COUNCILMAN, SHE SAID IT ALL EXCEPT FOR JUST A LITTLE BIT. WE ARE SO EXCITED TO RECEIVE THIS. THE STAFF AND OWNER OF HERITAGE MART BECAUSE WE TRY REALLY, REALLY HARD TO MAKE HERITAGE MARK A GREAT PLACE TO BE, NOT JUST THE BUILDING AND PROPERTY BUT EVERYTHING THAT YOU DON'T SEE, THE PERKS AND AMEN SIS FOR OUR CLIENTS, THE WONDERFUL CHRISTMAS BREAKFAST THAT WE HAVE, THE FRUIT INFUSED WATER IN THE BREAK ROOMS, WINE TASTINGS AFTER 5:00, OF COURSE, AND WANT HERITAGE MART TO NOT ONLY BE A GREAT PLACE FOR OUR CLIENTS BUT FOR OUR CLIENTS' CLIENTS TO COME TO. WE HAVE ROOM FOR ONE MORE BUSINESS TO COME JOIN THE HERITAGE MART COMMUNITY.

[00:15:04]

>> CONGRATULATIONS.

[3. Items from Council:]

ITEM. >> YES.

IT'S MORE A SHOUTOUT THAN ANYTHING BUT I WANT TO CALL ATTENTION TO THE HIKE AND BIKE TRAIL AT THE PLACE THAT IT CROSSES JOHN STOCKBAUER AND IF YOU'RE NOT FAMILIAR WITH THAT INTERSECTION OR WHERE THE CROSS IS, IT'S BECAUSE IT'S HARD TO SEE AND ABOUT NINE YEARS AGO, I THINK, OR MAYBE A LITTLE LESS WE DID INSTALL A MEDIAN WHICH HELPED AND THAT WAS DONE LOCALLY, OUR FOLKS DID IT, BUT I DEFINITELY WANT TO PUT A STRONG SHOUTOUT TO OUR PUBLIC WORKS DEPARTMENT FOR WHAT THEY'VE DONE IN THE LAST -- I'M NOT SURE -- MAYBE IN THE LAST COUPLE OF WEEKS YOU MIGHT HAVE NOTICED IT BUT THERE ARE FLASHING LIGHTS NOW THAT PEDESTRIANS CAN UTILIZE. IT IS BRIGHT.

IT IS VERY VISIBLE, AND IT'S A GREAT ADDITION, AND I WANT TO ESPECIALLY THANK ROLAND RODRIGUEZ AND ROBERTO ZARATE AND THE ENTIRE TRAFFIC DEPARTMENT BECAUSE NOT ONLY IS IT BEAUTIFULLY DESIGNED AND WORKS WELL BUT IT'S WONDERFULLY INSTALLED AND IT WAS DONE LOCALLY SO WE'RE DONE IN-HOUSE, I GUESS, SO I JUST REALLY WANT TO SHOUT OUT AND THANK THEM.

I DO WANT TO REMIND ANYBODY USING THAT INTERSECTION THAT YOU DON'T HAVE THE RIGHT OF WAY, JUST BECAUSE THE LIGHTS ARE FLASHING DOESN'T MEAN CARS HAVE TO STOP, SO PLEASE BE RESPONSIBLE, LOOK BOTH WAYS AND BE CAREFUL, BUT WE'VE DONE WHAT WE CAN TO LIGHT IT UP SO THAT PEOPLE KNOW YOU'RE THERE.

SO, THANK YOU.

>> THANK YOU, MISS SCOTT. ANY OTHER ITEMS? OKAY. I HAVE ONE REAL QUICK.

I JUST WANTED TO GIVE EVERYONE AN UPDATE ON OUR WATER SYSTEM REVIEW SUBCOMMITTEE. TAKE AN OPPORTUNITY JUST TO UPDATE RESIDENTS AND THE COUNCIL ON THE WORK OF THE SUBCOMMITTEE THAT WAS FORMED AT OUR LAST MEETING.

WE ARE MEETING WEEKLY. WE HAVE MADE GOOD PROGRESS TOWARDS OUR GOAL WHICH IS TO IDENTIFY THE ROOT CAUSE OF THE BOIL WATER INCIDENT BACK IN JULY AND AS WELL AS IDENTIFY ANY NEEDED IMPROVEMENTS, WHETHER THEY BE TO PROCESSES, TO EQUIPMENT, TO INFRASTRUCTURE AND SO WE'VE SET THE SCOPE OF THAT -- THE WORK TO ENCOMPASS ALL OF THESE THINGS.

THERE HAVE BEEN SOME OPERATIONAL CHANGES THAT HAVE ALREADY BEEN IMPLEMENTED BY STAFF INCLUDING A MORE FREQUENT WATER TESTING SCHEDULE. SO DETAILS, SHORT- TERM CHANGES, LONG- TERM RECOMMENDATIONS WILL BE INCLUDED IN A WRITTEN REPORT THAT THE SUBCOMMITTEE IS CONTINUING TO WORK ON. SO, THE SCOPE OF WORK OF THE COMMITTEE IS GEARED TOWARD AN ULTIMATE GOAL WHICH IS MORE THAN JUST A BOIL WATER NOTICE REVIEW.

THE ULTIMATE GOAL IS AN OVERALL IMPROVED WATER SYSTEM FOR THE CITY ITSELF AND WE HOPE THAT THAT WILL BE THE RESULT OF THIS PROCESS AND CONTINUE TO WORK TOWARD THAT OBJECTIVE AS EXPEDITIOUSLY AS POSSIBLE GIVEN THE SCOPE OF THE

[4. Citizen Communication:]

>> I'M MICHAEL VONEROW. I'D LIKE TO THANK THE CITY OF VICTORIA FOR TAKING CARE OF THE ISSUES AND ATTORNEY CROCKER FOR PUTTING THAT SUBCOMMITTEE MEETING TOGETHER AND TRLA IS THE LEGAL AID SOCIETY GIVING FREE LEGAL ADVICE AT THE SALVATION ARMY FROM 6:00 TO 8:00 ON AUGUST 11TH. 6 TO 8:00 P.M. IF YOU WANT FREE LEGAL HELP AND ON NORTH STREET AND 2210 EAST NORTH STREET, VICTORIA OAKS TRAILER PARK.

THERE IS A WHOLE BUNCH OF BRANCHES ALL OVER THE SIDEWALK THERE'S FURNITURE ON THE SIDEWALK. THERE'S WATER METER COVER OFF THERE'S A BIG TRENCH RIGHT BY THE SIDEWALK AND I'VE BEEN COMPLAINING FOR IT FOR MONTHS AND MONTHS AND PERSONAL INJURY LAWYER DOES WHAT HE DOES BEST AND IT'S NOTHING. HE'S TURNED A BLIND EYE TO

[00:20:01]

IT'S SUNSHINE PLUMBING AND SCHOOL IS STARTING AND PEOPLE RIDE THEIR BICYCLES, YOU KNOW, TO SCHOOL.

IT'S A LOW- INCOME AREA. I WAS RIDING MY BICYCLE UP HERE AND A WHOLE BUNCH OF BANANA TREE BRANCHES SLAPPED ME IN THE FACE AS I WAS RIDING MY BIKE AND THEY STILL REFUSE TO TAKE CARE OF IT.

YET, THEY INCREASED THE RENT FROM 410 TO 485, $75 EXTRA TO PAY FOR THE CONCRETE, AND THEY INCREASED RENT BUT IN RETURN YOU GET NO SERVICE.

THERE'S MAILBOXES THAT IS ALL OVER THE PLACE.

YOU KNOW, FALLING APART. NO LIDS TO THE MAILBOXES.

ON TRAILER 29, IT NEEDS TO BE LIKE CRUSHED, YOU KNOW.

THERE IS A TOILET IN THE FRONT, FURNITURE, BROKEN WINDOWS.

VANDALISM AND WHERE THEY POURED THE CONCRETE THEY'RE NOT EVEN PUTTING NO DIRT ON THE SIDE, YOU COULD FALL OFF THE CONCRETE. 110 HAD ALSO HAD A BRANCH FALL ON HIS TREE. THEY WANT THE TENANTS TO TAKE TREES, YOU KNOW, NOT THE TRAILER PARK MANAGEMENT LIKE THEY'RE SUPPOSED TO AND IT'S JUST A MESS.

AND I WISH THE PERSONAL INJURY LAWYER WOULD TAKE CARE OF IT. I ACTUALLY WENT TO TALK TO HIM ABOUT IT, BUT I ONLY GOT TO TALK TO THE PARALEGAL. WASN'T SANCTIONED BY THE CITY OF VICTORIA. I DID THAT ON MY OWN, BUT, YOU KNOW, HE'S WINNING THESE MULTIMILLION DOLLAR CASE, $80 MILLION IN INVESTMENTS, SOMETIMES HE GETS 40% OF THE WINNINGS ON HIS MULTIMILLION DOLLAR CASES AND STILL NO HELP.

THANKS. APPRECIATE IT.

[1. An ordinance of the City of Victoria, Texas ordering a special electio...]

>> THANK YOU. ALL RIGHT.

THEN WE WILL MOVE THEN TO SECTION C.

ITEMS WITH PUBLIC HEARINGS AND BEGIN WITH C1.

>> ORDINANCE OF THE CITY OF VICTORIA, TEXAS, ORDERING A SPECIAL ELECTION ON NOVEMBER 4TH, 2025 FOR THE PURPOSE OF SUBMITTING TO THE VOTERS THE QUESTIONS OF WHETHER CHAPTER 143 OF THE TEXAS LOCAL GOVERNMENT CODE, CIVIL SERVICE, SHOULD BE ADOPTED FOR THE VICTORIA FIRE DEPARTMENT AND WHETHER CHAPTER 174 OF THE TEXAS LOCAL GOVERNMENT CODE COLLECTIVE BARGAINING SHOULD BE ADEPARTMENTED FOR THE VICTORIA FIRE DEPARTMENT. MAKING PROVISION FOR THE CONDUCT OF THE ELECTION AND RESOLVING OTHER MATTERS INCIDENT TO SUCH ELECTION.

>> MY TURN.

LANGUAGE ]

>> GOOD EVENING, MAYOR AND COUNCIL.

I WOULD STATE THIS IS ON EMERGENCY READING BECAUSE WE HAVE TO CALL THE ELECTION 74 DAYS BEFORE -- BEFORE THE ELECTION SO WE'RE TRYING TO MEET THAT TIME LINE. THE VICTORIA FIREFIGHTERS' ASSOCIATION PRESENTED PETITIONS UNDER CHAPTER 143 AND CHAPTER 174 OF THE TEXAS LOCAL GOVERNMENT CODE SEEKING ELECTION TO ALLOW VOTERS TO CONSIDER APPROVING THE CIVIL SERVICE AND COLLECTIVE BARGAINING SECTIONS OF THOSE CHAPTERS FOR SPECIFICALLY THE VICTORIA FIRE DEPARTMENT. AFTER VERIFYING THE REQUIRED ELEMENTS IN THE PETITION ACCORDING TO CHAPTER 277 OF THE TEXAS ELECTIONS CODE AND REQUIRED NUMBER OF SIGNATURES FROM THE TWO SECTIONS OF THE RESPECTIVE LOCAL GOVERNMENT CODE, THE PETITIONS WERE DEEMED TO HAVE MET THE SPECIAL ELECTION OR THE REQUIREMENTS AND THE ORDER NANCE BEFORE YOU TONIGHT ORDERS A SPECIAL ELECTION ON NOVEMBER 24TH, TO ALLOW VOTERS TO CONSIDER THE COLLECTIVE BARGAINING FOR THE VICTORIA FIRE DEPARTMENT.

>> MISS HILBRICH, BEFORE WE THAT, THANK YOU TO YOU AND YOUR STAFF AND TAKING CARE OF THAT FOR US.

>> YES, SIR, I APPRECIATE IT.

>> ANY QUESTIONS FOR MISS HILBRICH BEFORE WE OPEN THE HEARING? OKAY. WITH THAT THEN I WILL OPEN A PUBLIC HEARING ON ITEM C1. ANYONE HERE WHO WISHES TO ADDRESS COUNCIL ON THIS ITEM COME FORWARD.

SEEING NO ONE THEN I WILL CLOSE THE HEARING ON ITEM C1 AND ENTERTAIN ANY MOTIONS.

>> MOTION TO APPROVE ITEM C1.

>> SECOND.

>> WE GOT A MOTION TO SECOND. ANY DISCUSSION? ALL IN FAVOR SAY AYE.

[2. Approve and adopt the Community Development Block Grant (CDBG) 2025- 2...]

>> AYE.

>> ANY OPPOSED. C1 PASSES.

[00:25:02]

>> IT IS A RESOLUTION APPROVING AND ADOPTING THE COMMUNITY DEVELOPMENT BLOCK GRANT OR CDBG 2025 TO 2019 CONSOLIDATED PLAN, 2025 THROUGH 2026 ANNUAL ACTION PLAN, THE ANALYSIS OF IMPEDIMENTS AND CITIZEN PARTICIPATION PLAN AND AUTHORIZE THE CITY MANAGER TO SUBMIT ALL REQUIRED DOCUMENTATION OF FISCAL YEAR 2025/2026, CDBG PROGRAM TO THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT.

>> GOOD EVENING, WELCOME.

>> THANK YOU, CITY. CITY COUNCIL AND MAYOR, THIS EVENING WE ARE GOING OVER THE 2025 TO 2029 COMMUNITY DEVELOPMENT BLOCK GRANT CONSOLIDATED PLAN IS A FIVE- YEAR PLAN AND THE ANNUAL ACTION PLAN FOR 2025.

THIS WILL BE FINAL APPROVAL AND ADOPTION.

ALL RIGHT. SO THE CONSOLIDATED PLAN IT'S A FIVE-YEAR PLAN THAT WE HAVE TO SUBMIT TO HUD.

IDENTIFIES OUR HOUSTON AND COMMUNITY DEVELOPMENT LEADS WITHIN THE CITY'S LOW TO MODAL OUTLINES HOW WE WILL ADDRESS THOSE IDENTIFIED NEEDS. SO THERE'S A BUNCH OF ELEMENTS THAT MAKE UP THE CONSOLIDATED PLAN AS YOU CAN SEE, CITIZEN PARTICIPATION PLAN, HOUSING MARKET ANALYSIS, HOUSING AND HOMELESS NEED ASSESSMENT, ANALYSIS OF IMPEDIMENT, AMONG TORING PLAN, REQUIRED CERTIFICATIONS, STRATEGIC PLAN AND AN ANNUAL ACTION PLAN. SPECIFICALLY POINTING OUT THE ANALYSIS OF IMPEDIMENTS THAT IDENTIFIES AND ASSESSES OUR IMPEDESTRIANMENTS FOR FAIR HOUSING HERE IN VICTORIA AND SO WHAT WE DID, WE UPDATED WITH NEW CENSUS DATA MOST DATA, WE UPDATED THAT, ONE THAT WE HAD PREVIOUSLY CREATED FIVE YEARS AGO AND AS WELL WITH THE CITIZEN PARTICIPATION PLAN JUST WENT THROUGH THAT MAKING SURE WE HAVE THINGS IN PLACE TO MAKE SURE WE HAVE AS MUCH PARTICIPATION IN OUR PLANS AS POSSIBLE FROM THE COMMUNITY.

AND SO SOME OF OUR GOALS FOR THE CONSOLIDATED PLAN, WE ARE GOING TO CONTINUE TO MONITOR PLAN AND ADMINISTRATOR THE ENTITLEMENT GRANT PROGRAMS THAT ENSURE COMPLIANCE WITH FEDERAL REGULATIONS. WILL ENHANCE LIVEABILITY THROUGH PUBLIC INFRASTRUCTURE AND IMPROVEMENTS SUCH AS STREETLIGHTS AND SIDEWALKS AND PARKS PROJECTS AND CDBG ELIGIBLE CENSUS BLOCK GROUPS, NEIGHBORHOOD PROGRAMS, WE WILL CONTINUE TO DO OUR DEMOLITION AND CLEARANCE PROJECTS TO ADDRESS THE UNSAFE STRUCTURES THERE AND THOSE CDBG ELIGIBLE AREAS.

HOUSING, WE WILL ASSIST LOW TO MODERATE INCOME FIRST- TIME HOME BUYER WITH DOWN PAYMENT CLOSING COST ASSISTANCE AS WELL AS HOME REHAB FOR -- TO PRESERVE SAFE HOUSING FOR OUR LOW TO MODERATE INCOME HOUSEHOLDS. AND THEN PUBLIC FACILITY GOALS, WE WILL CONTINUE TO SUPPORT RENOVATIONS AND IMPROVEMENTS TO COMMUNITY FACILITY FOR FIGHTERS AND FACILITIES THAT SERVE SPECIAL NEEDS POPULATIONS, FOR EXAMPLE, HOMELESS, CENTERS THAT HELP WITH THE HOMELESS, CENTERS THAT HELP WITH FOOD BANKS, YOUTH CENTERS, THINGS LIKE THAT.

AND THEN FOR OUR PUBLIC SERVICES WE'RE GOING TO CONTINUE TO SUPPORT PUBLIC SERVICE ACTIVITIES THAT PROVIDE ESSENTIAL SERVICES TO PERSONS WHO ARE LOW TO MODERATE INCOME WITHIN THE CITY OF VICTORIA, OR MAY HAVE SPECIAL NEEDS SUCH AS SUBSISTENCE SUPPORT SERVICE, CHILD AND YOUTH SERVICES, EMPLOYMENT JOB TRAINING SERVICE, MENTAL HEALTH, WELLNESS SERVICES, HOMELESS, AT RISK, HOMELESS PREVENTION SERVICES, AND SENIOR AND/OR DISABLED ADULT SERVICES AND SERVICES FOR ABUSE AND NEGLECTED CHILDREN. SO THOSE ARE OUR BIG OVERARCHING GOALS FOR THE 2025- 2029 CONSOLIDATED PLANK SO WITH OUR BUDGETING WE HAVE TO ESTIMATE HOW MUCH WE WILL GET EACH YEAR SO WE DID GET AN APPROPRIATION FOR 537,925 FOR THIS UPCOMING PROGRAM YEAR WHICH WILL START OCTOBER 1ST AND RUN THROUGH SEPTEMBER 30TH, 2026 AND WE DID PROJECT OUT ABOUT 525,000 FOR THE NEXT COUPLE OF PROGRAM YEARS, WE HAVE BEEN KEEPING AN EYE ON THE APPROPRIATIONS COMMITTEES AND IT LOOKS LIKE THEY'RE GAINING TRACTION NOT TO GET RID OF CDBG BUT WE'RE KEEPING A CLOSE EYE ON THAT AND SEEING HOW THAT WILL GO.

WE DO HAVE MONEY FOR THE COMING YEAR AND STILL WAITING TO SEE FOR 2026 WHICH WOULD BE FISCAL YEAR '27. OKAY, AND THEN WE GO INTO THE ANNUAL ACTION PLAN, SO THE SPECIFICS OF WHAT WE'RE GOING TO DO TO REACH THOSE GOALS THAT WE JUST DISCUSSED. ALL RIGHT.

SO AS SAID, WE WILL RECEIVE $537,925 IN ENTITLEMENT FUNDING

[00:30:06]

WE'RE NOT SURE YET WHERE. BUT WE WILL COME BACK TO Y'ALL WHEN WE HAVE THAT MORE SPECIFIC LOCATION.

AND THEN FOR PUBLIC FACILITIES, WE'RE GOING TO BUDGET 195,000 AND FOR PUBLIC SERVICE THAT'S THE PART OF THE BUDGET THAT'S CAPPED AT 15% AND THAT'S SET BY HUD AND CAN'T SPEND OVER THAT SO CAN ONLY SPEND 80,500 ON THAT SO THAT MAKES UP OUR BUDGET.

THIS IS THE LOW TO MODERATE INCOME LIMITS FOR THE UPCOMING YEAR, PROGRAM YEAR.

THIS IS SET BY HUD AS WELL SO THIS IS HOW WE QUALIFY PEOPLE AS LOW TO MODERATE INCOME SO ESSENTIALLY AS LONG AS THEY FALL BELOW THAT 80% DEPENDING ON THEIR HOUSEHOLD SIZE, THAT'S HOW WE QUALIFY THEM AS LOW TO MODERATE INCOME AND THAT'S FOR EVERY INDIVIDUAL IN THE HOUSEHOLD OVER 18 THAT BRINGS IN INCOME, GROSS INCOME. AND THEN OUR 2024 LOW TO MODERATE INCOME BLOCK GROUPS WE'VE HAD A CHANGE AS OF AUGUST 1ST OF THIS YEAR OR THIS PAST YEAR, 2024, GETTING THE YEARS MIXED UP BUT WE HAD A LITTLE BIT OF MOVEMENT IN LOW TO MODAL INCOME BLOCK GROUPS, SO WE'LL HAVE OUR DEMOLITION AND CLEARANCE PROGRAM THAT CAN DEMOLISH AND CLEAR SUBSTANDARD HOMES, STRUCTURES IN THOSE AREAS AS WELL AS THE SIDEWALK PROJECT ONCE WE, LIKE I SAID, ONCE WE COME BACK WITH SPECIFICALLY WHERE WE DO THAT IT WILL BE WITHIN ONE OF THESE LOW TO MODERATE INCOME BLOCK GROUP AREAS.

AND THEN THIS IS A SNAPSHOT OF THE PROCESS TO GET NONPROFITS AND LOCAL AGENCIES QUALIFIED FOR OUR PROGRAMS SO WE ANNOUNCED THE APPLICATION PROCESS BACK IN FEBRUARY, 2025.

WE HELD A WORKSHOP ON MARCH 5TH WHERE WE WENT OVER ALL THE CDBG RULES AND REGULATIONS AND APPLICATION PROCESS WITH THE LOCAL AGENCIES WHO WERE INTERESTED IN APPLYING FOR CDBG. WE HAD APPLICATION REVIEW FROM MAY 1ST THROUGH MAY 16TH AND BROUGHT FUNDING RECOMMENDATIONS TO Y'ALL ON JUNE 3RD. PUBLIC COMMENT PERIOD ON THE DRAFT -- ON THE DRAFT PLAN WAS JULY 3RD.

UP UNTIL AUGUST 4TH AND THEN WE ARE AT THE PUBLIC HEARING FOR THE APPROVAL OF THE PLAN AND ANNUAL ACTION PLAN AND THEN AFTER TONIGHT'S MEETING WE WILL SUBMIT TO HUD BY AUGUST 16TH BUT AS SOON AS I GET APPROVAL I WILL BE WORKING REALLY HARD TO MAKE SURE WE GET IT IN BY FRIDAY.

SO AND THEN AFTER THAT, AFTER WE GET APPROVAL FROM HUD I'LL START REACHING OUT TO RECIPIENTS SETTING UP THEIR AGREEMENTS AND THEN FUNDING WILL BECOME AVAILABLE FOR REIMBURSEMENT FOR SOME RECIPIENTS OCTOBER 1 ST THROUGH OCTOBER 30TH, 2026.

OKAY? AND THEN FOR OUR PUBLIC FACILITIES, WE -- THIS YEAR WE ARE ING -- SO WE'RE GOING TO DR. ONE PUBLIC FACILITY THIS COMING YEAR. IT'S GOING TO BE HOUSING -- VICTORIA HOUSING AUTHORITY, THEIR EXTERIOR PAINTING AND WINDOW REPLACEMENT FOR THE PHILMORE APARTMENTS.

BOYS AND GIRLS CLUB, THEIR CENSUS BLOCK GROUP WASN'T WITHIN ONE OF THE ELIGIBLE AREAS SO WE WEREN'T ABLE TO FUND THEM. AND THEN FOR OUR PUBLIC SERVICES, THIS IS OUR HARDEST ONES TO GO THROUGH BECAUSE

[00:35:01]

EVENT ASSISTANCE FOR THEM, FOOD BANK OF GOLDEN CRESCENT AND HELP WITH THEIR WEEKEND MEALS EVENT.

AND CASA, VOLUNTEER FOR EVERY CHILDREN IN NEED.

THE WELLNESS COMMUNITY, HOSPITAL OF SOUTH TEXAS, ONE OF OUR NEW SUBRECIPIENTS THIS YEAR AND WE'LL ASSIST WITH TRAUMA CARE FOR VICTIMS OF CHILD ABUSE.

MIDCOAST FAMILY SERVICE, A NEW PSA BUT HAVE ASSISTED THEM IN THE PAST WITH FACILITIES BUT THIS YEAR WE WILL BE HELPING THEM FUND A STAFF MEMBER IN THEIR RESOURCE HUB TO HELP THOSE WHO COME VISIT, GET THEM IN THE RIGHT DIRECTION OF WHAT RESOURCES THEY NEED TO GO TOWARDS. AND THEN PERPETUAL HEALTH HOME WILL BE ASSISTING WITH THEIR RESIDENT MANAGEMENT AND UNITED WAY CROSSROADS THEIR COMMUNITY CONNECTIONS PROJECT.

SO, THE IMPORTANT DATES AGAIN, WE HAD OUR PUBLIC COMMENT PERIOD FROM JULY 3RD, 2025 THROUGH AUGUST 4TH, 2025.

AND WE ARE HAVING OUR PUBLIC HEARING AND FINAL APPROVAL TONIGHT, AND THEN AS I SAID BEFORE WE HAVE A DEADLINE TO SUBMIT THE CONSOLIDATED PLAN, PARTICIPATION PLAN AND ANNUAL ACTION PLAN AND ALL OTHER DOCUMENTS BY AUGUST 16TH, BUT WE DO ANTICIPATE ON SUBMITTING THAT A WEEK BEFORE, SO DO YOU HAVE ANY QUESTIONS?

>> ANY QUESTIONS? THE ONE QUESTION I HAD ON THE SIDEWALK PROJECTS, ARE THOSE LIMITED TO PRIMARILY RESIDENTIAL AREAS? I WOULD ASSUME THROUGH THIS PROGRAM OR ARE THEY JUST WITHIN THOSE DESIGNATED

AREAS. >> WITHIN THOSE DESIGNATED AREAS.

>> OKAY, GOT IT. ALL RIGHT.

ANY QUESTIONS? ALL RIGHT. THANK YOU TO YOU AND YOUR TEAM.

I KNOW THIS IS A LOT OF WORK AND GOING THROUGH THIS AND WE CERTAINLY APPRECIATE YOU PUTTING ALL THAT TOGETHER AND THANK YOU FOR THE INFORMATION THIS EVENING. SO WITH THAT THEN I WILL OPEN UP THE PUBLIC HEARING ON ITEM C2.

ANYONE WANTING TO ADDRESS THIS, SEEING NO ONE I WILL CLOSE THE PUBLIC HEARING AND ENTERTAIN ANY MOTIONS WITH RESPECT TO

IT. >> MOTION TO APPROVE AND ADOPT

C2. >>

SECOND. >> GOT A MOTION AND A SECOND. ANY DISCUSSION? SEE NONE. ALL IN FAVOR SAY AYE.

[D. Consent Agenda:]

>> AT YE.

>> ANY OPPOSED AND ITEM C2. MOVING TO THE CONSENT AGENDA.

>> ADOPTION OF MINUTES FOR THE REGULAR MEETINGS HELD JULY 15TH, 2025. AN ORDINANCE TO THE CITY COUNCIL OF THE CITY OF VICTORIA, TEXAS, AMENDING CHAPTER 8, FINANCE AND TAXATION OF THE CITY'S CODE OF ORDINANCES TO ADD A NEW ARTICLE, ARTICLE IV, SHORT- TERM MOTOR VEHICLE RENTAL TAX TO REFLECT THE ADOPTION OF A SHORT- TERM MOTOR VEHICLE RENTAL TAX WITHIN THE CITY TO FUND AN APPROVED VENUE PROJECT AS APPROVED BY THE VOTERS IN THE MAY 3RD, 2025 SPECIAL ELECTION PROVIDING FOR THE INCORPORATION OF PREMISE, PROVIDING FOR AN AMENDMENT, PROVIDING A CUMULATIVE REPEALER CLAUSE. PROVIDING A SEVERABILITY CLAUSE, PROVIDING A PENALTY CLAUSE, PROVIDING FOR PUBLICATION AND PRYING AN EFFECTIVE DATE. SECOND AND THIRD READING, ITEM D3, AN ORDINANCE VACATING CLOSING AND ABANDONING OF 0. 13 ACRES OF PUBLIC RIGHT-OF- WAY KNOWN AS E SLATER AVENUE LOCATED BETWEEN BLOCK 164, BLOCK 16 AAND G.H. & S.A. RAILROAD WITHIN THE ORIGINAL TOWNSITE OF VICTORIA IN RESPONSE TO THE PETITION OF 100% OF THE AD JOINING LAND OWNERS. SECOND AND THIRD.

ITEM D4, APPOINTING WESLEY JANECEK CPA AS A REPRESENTATIVE TO PERFORM THE NO NEW REVENUE OR EFFECTIVE TAX RAT AND VOTER APPROVALED ROLLBACK TAX RATE. D5, A RESOLUTION APPROVING A CONTRACT AMENDMENT WITH TYLER TECHNOLOGIES INCORPORATED FOR THE TYLER MUNIS ERP SYSTEM INCREASING THE ESTIMATED AMOUNT FROM $2,280,982 TO $2,306,754. D6, AUTHORIZATION OF THE PUBLICLY SAYS OF THE NOTICE OF MEETING TO VOTE ON TAX RATE. 7 IS SCHEDULING PUBLIC HEARINGS ON FISCAL YEAR 2025/2026 PROPOSED BUDGET. D8 APPROVING THE PROFESSIONAL SERVICES AGREEMENT WITH GARY MIDDLETON FOR REPRESENTATION AND CONSULTATION SERVICES RELATED TO MUNICIPALITY WATER SUPPLY IN

[00:40:01]

12 IS APPROVE CHANGE ORDER NUMBER 6 TO THE DUCK POND RENOVATION PROJECT WITH LESTER CONTRACTING, INC. IN THE AMOUNT OF $155,573. 60 AND D13 AUTHORIZING THE CITY MANAGER TO NEGOTIATE THE TERMS OF THE PROFESSIONAL 70SS AGREEMENT WITH AG/CM FOR OWNER'S REPRESENTATION SERVICES IN CONNECTION WITH THE EXPANSION OF THE COMMUNITY

CENTER. >> THANK YOU, MISS HILBRICH.

DO I HAVE ANY MOTIONS WITH RESPECT TO THE CONSENT AGENDA?

>> CONSENT AGENDA MOVED.

>> I SECOND IT. ALL IN OFFICER.

[1. Consideration of an appeal of the Building Standards Commission's orde...]

>> AYE.

>> ANY OPPOSED AND CONSENT AGENDA PASSES AND JUMP INTO ACTION ITEMS FROM COUNCIL AND WE'LL BEGIN WITHITE E1.

>> A RESOLUTION CONSIDERING AN APPEAL OF THE BUILDING STANDARDS TO DEMOLISH THE STRUCTURE AT 2606 PORT LAVACA DRIVE.

>> GOOD EVENING, MISS FULGHAM.

>> GOOD EVENING. THIS PROPERTY FIRST GOT ON THE RADAR IN APRIL BECAUSE OF VAGUE GRANT ACTIVITY.

WHEN CODE ENFORCEMENT PERFORMED INSPECTIONS THEY REALIZED IT WAS ON THE VERGE OF BASICALLY BECOMING TO A POINT WHERE IT WOULD NOT BE ABLE TO BE REHABBED.

AS SUCH, THEY SENT NOTICE TO THE PROPERTY OWNERS AND, YOU KNOW, ASKED FOR REPAIRS, BUT DID STILL WANT TO TAKE IT TO THE BUILDING STANDARDS COMMISSION TO TRULY SECURE AND ORDER A REPAIR. THE PROPERTY OWNER PULLED A PERMIT IN JULY FOR THE ROOF EXTERIOR WINDOWS AND OVERALL GENERAL REPAIRS ALTHOUGH IT DID NOT INCLUDE PERMITS FOR THE PLUMBING OR ELECTRICAL SYSTEMS. AT THE JULY 22ND COMMISSION MEETING THE BOARD REALLY DISCUSSED THE VAGUE GRANT ACTIVITY AND FACT THIS WAS PROPERTY WAS A NUISANCE AND DECLARED THAT THE PROPERTY -- MADE A MOTION IT WAS UNSAFE, AFTER THE BOARD DECLARES OR MAKES A MOTION THAT A PROPERTY IS UNSAFE THEY HAVE TO DETERMINE WHETHER THE PROPERTY IS MORE THAN OR LESS THAN 50% OF ITS VALUE REMAINS. THE COMMISSION DETERMINED THAT THERE WAS MORE THAN 50% OF THE VALUE HAD BEEN DAMAGED OR THE BUILDING WAS IN DETERIORATION AND THEREFORE AN AUTOMATIC DEMOLITION ORDER WAS ISSUED. SORRY.

SO WHAT IS WRONG WITH THIS BUILDING? AS YOU CAN SEE IT'S A PRETTY STANDARD COMMERCIAL SHELL. THE ROOF IS SEVERELY DETERIORATED. A LOT OF THE EVIDENCE OF DETERIORATION REALLY IS CLEAR ON THE INTERIOR PICTURES, THAT THEY, OF COURSE, RECEIVED AN ADMINISTRATIVE WARRANT TO INSPECT.

SO THE SYSTEMS, OF COURSE, ARE GONE.

THE ROOF IS SEVERELY DETERIORATED, IT'S PAST ITS USEFUL LIFE AND IS ALLOWING WATER TO INFILTRATE THE BUILDING, HOWEVER, THE CONCRETE BLOCK WALLS SO FAR ARE STILL IN MARGINAL SHAPE.

THERE IS NOT REALLY EVIDENCE OF LARGE CRACKING EXCEPT IN A VERY FEW SPACES IN THE INTERIOR OF THE BUILDING AND SO THAT'S WHY LIKE I SAID CODE ENFORCEMENT REALLY FELT THIS BUILDING WAS ON THE VERGE AND DID RECOMMEND AN ORIGINAL ORDER OF REPAIR.

AND SO THIS IS, LIKE I SAID, THIS IS THE EVIDENCE OF CRACKING THAT YOU SEE, BUT FOR THE MOST PART, A NEW ROOF COMPLETELY CLEANING THE BUILDING OUT AND NEW SYSTEMS COULD EASILY PRESERVE THE FOUNDATIONAL WALLS OF THE BUILDING, SO IT IS REALLY COULD GO EITHER WAY. IF LEFT IN THIS CONDITION IT ABSOLUTELY WILL DETERIORATE TO THE POINT OF NO RETURN. FOR THOSE REASONS I BELIEVE THE PROPERTY OWNER APPEALED THE ORDER AND THEY ARE HERE TO ADDRESS THE COUNCIL IF YOU'D LIKE.

>> OKAY. IS THERE ANY QUESTIONS FOR MISS FULGHAM ON THAT?

>> I WOULD LIKE TO ASK, DO YOU KNOW WHEN THE LAST TENANT WAS THAT WAS IN THIS BUILDING?

>> NO, I DO NOT. BUT THE PROPERTY OWNER MAY BE ABLE TO ANSWER THAT QUESTION.

>> OKAY.

>> OKAY, YEAH. ARE YOU HERE TO ADDRESS COUNCIL ON THIS?

>> YES, SIR.

>> PLEASE COME FORWARD, THANK YOU.

>> GOOD EVENING, COUNCIL AND MAYOR.

FIRST OF ALL, THANK YOU FOR ACCEPTING OUR APPEAL.

I JUST WANTED TO SAY, I'M THE OWNER'S SON.

[00:45:03]

OUR TEAM IS PREPARED, MY FATHER AND A GENERAL CONTRACTOR OUT OF HOUSTON, TEXAS, WE'RE THE ONES WHO PULLED THAT PERMIT. WE'RE KIND OF JUST GATHERING ALL THE MATERIAL AND THINGS LIKE THAT TO GET ALL THE WORK DONE.

IT IS OBVIOUSLY THE CONTRACTORS ARE FROM HOUSTON SO THERE IS A BIT OF A COMMUTE SO TRYING TO FIGURE OUT ALL THE LOGISTICS, BUT EVER SINCE WE GOT THE NOTICE OF THE DEMOLITION OR WE SAW IT, THAT'S WHEN, LIKE, IT KIND OF PAUSED. THE WORK KIND OF PAUSED UNTIL THE DAY WE SHOWED UP TODAY.

SO, WE KIND OF JUST TO ENSURE THE HIGHEST QUALITY OF WORK AND THOROUGH RESOLUTION WE JUST RESPECTFULLY REQUEST A 0- DAY PERIOD TO COMPLETE ALL THE NEGLIGENCE REPAIRS.

WE ARE LIKE SHE SAID THE MECHANICAL AND ELECTRICAL ISSUES THAT THEY ARE THERE AND DO HAVE A PLAN FOR IT. WE HAVE TALKED TO THE GENERAL CONTRACTOR TO PULL THOSE PERMITS ALSO.

SO WE ARE WILLING TO, LIKE I SAID, FULLY COMMIT AND ADDRESS ALL THE DEFICIENCIES 23 WE CAN GET SOME TIME, I THINK WE CAN GET THE BUILDING BACK IN ORDER.

>> BASED ON WHAT I SAW THERE, I GOT TO BE HONEST WITH YOU, I QUESTION WHETHER OR NOT YOU CAN GET THIS BACK IN, YOU KNOW, STABLE CONDITION WITHIN THAT 30- DAY WINDOW. WHAT'S YOUR CONFIDENCE LEVEL ON THAT BEING ACHIEVABLE? WHAT'S YOUR CONTRACTOR TELLING YOU?

>> I MEAN, HE SAYS HE CAN GET IT DONE.

I MEAN THEN AGAIN HE IS A GENERAL CONTRACTOR, SO I MEAN GIVE OR TAKE.

WE DEAL WITH THEM ALL THE TIME SO THAT'S JUST -- HE -- I MEAN, SOME MORE TIME WOULD BE BEST, BUT I MEAN 30 DAYS WE CAN TRY TO AT LEAST GET AN UPDATE AND SEE WHERE WE'RE AT. I THINK WE CAN GET A LOT OF THE MINOR STUFF DONE PRETTY QUICKLY.

I MEAN, IT'S NOT THAT BIG OF A BUILDING, THE ROOF AND WINDOWS CAN BE ADDRESSED PRETTY QUICKLY.

>> OKAY. DID YOU WANT TO ASK YOUR QUESTION?

>> IF I MAY, THANK YOU.

>> SURE.

>> WHEN WAS THE LAST TEN APARTMENT -- WHEN WAS THE BUCKNELL BUILDING LAST OCCUPIED?

>> IT COULD BE OVER THREE OR FOUR YEARS, AT

LEAST. >> AND IF YOU DO GET IT REHA BILL BILITATED.

WHAT WILL BE THE USE.

>> WE'RE TALKING TO CITIZENS WHO WILL WORK OUT A DEAL TO VP OR LEASE IT.

WE'RE NOT SURE WHAT THEIR PURPOSE WOULD BE WITH THE BUILDING.

>> AND HOW LONG HAS YOUR FATHER OWNED THE BUILDING?

>> ABOUT FOUR OR FIVE YEARS. SORRY, I JUST -- I DON'T KNOW -- WE HAD ANOTHER PARTNER LIVING IN VICTORIA. HE WAS THE ONE WHO WAS MANAGING THE PROPERTY AND THINGS LIKE THAT AND THEN HE KIND OF JUST LIKE JUST BASICALLY JUST LEFT IT THERE AND HE DIDN'T DO HIS JOB SO WE KIND OF HAVE TO DO IT FROM HOUSTON, SO IT'S A LITTLE DIFFICULT BUT WE'RE WILLING TO TAKE CARE OF THE PROJECT.

>> WHAT'S THE SQUARE FOOTAGE OF THE BUILDING?

>> IT'S LIKE ABOUT A THOUSAND TO 1,200. LESS THAN A THOUSAND SQUARE FEET. ABOUT 1200 SQUARE FEET, I WOULD SAY.

>> ARE THERE ANY OTHER QUESTIONS? ALL RIGHT. THANK YOU.

SO, YOU KNOW, I GUESS OUR OPTIONS ARE EITHER TO TAKE ACTION ON THIS WE COULD TABLE THIS FOR A 30- DAY PERIOD OF TIME TO SEE IF IT COULD COME BACK AND DO THE WORK THAT YOU'RE SAYING YOU CAN GET DONE IN THAT TIME AND TAKE IT BACK UP AT THAT POINT OR PLACE WHATEVER CONDITION WE MAY WANT TO ON THIS SO THOSE ARE ALL OPTIONS ON THE TABLE.

>> WHO SAID THE 30- DAY PERIOD? THEY

DID? >> MAYOR, IF I MAY.

>> YES, THANK YOU.

>> I WOULD SAY EITHER YOU CAN TABLE IT BUT THERE ARE SOME OTHER OPTIONS. YOU CAN UPHOLD THE BUILDING AND STANDARDS COMMISSION'S DEMOLITION ORDER OR YOU CAN REVERSE THEIR ORDER AND ESSENTIALLY REVERSING THEIR ORDER, THIS BUILDING COULD GO BACK TO THE BUILDING AND STANDARDS COMMISSION IN OCTOBER AT THEIR NEXT MEETING FOR THEM TO CONSIDER AGAIN.

SO, THAT'S ANOTHER OPTION AS WELL.

>> HAVE WE ALSO IN THE PAST KIND OF UPHELD THE ORDER BUT GIVEN AN EXTENSION OF TIME BEFORE WE WOULD GO INTO THE DEMOLITION PHASE? OR SOMETHING LIKE THAT? IS THAT --

>> IT'S A LITTLE BIT MORE CLEAR IF WE EITHER TABLE OR MAKE A DECISION TO UPHOLD OR REVERSE THE ORDER.

>> OKAY, SO IT'S MORE CLEAR IF WE TABLE OR VACATE OR REVERSE

[00:50:01]

>> TABLE, UPHOLD THE ORDER OR

REVERSE THE ORDER. >> OKAY.

>> OKAY. MISS FULGHAM, CAN I ASK A QUESTION? SO, IF WE WERE TO TABLE THIS TODAY TO GIVE THAT 30- DAY PERIOD, I'M ASSUMING THAT YOU GUYS COULD STILL DO YOUR INSPECTIONS IN THE INTERIM, COME BACK DURING THAT OR AT THE END OF THAT 30 DAYS AND SAY THE WORK HAS BEEN DONE OR NOT DONE OR IT'S NOW A STABLE

BUILDING. >> RIGHT, AND TO MAKE IT NOT SUBSTANDARD IT DOESN'T NECESSARILY HAVE TO HAVE A CERTIFICATE OF OCCUPANCY AND BE OCCUPIED SO WHAT WE WOULD BE LOOKING FOR IS THE ROOF TO BE COMPLETELY REBUILT SO THAT IT FUNCTIONS AS A ROOF AND DOESN'T LET WATER INFILTRATE. THOSE STRUCTURAL CRACKS THAT ARE MINOR AT THIS POINT BE REPAIRED SO THEY DON'T BECOME MAJOR, AND THEN JUST GENERALLY CLEANING OUT, CLEANING UP AND CLEANING OUT THE ENTIRE PROPERTY AND THEN, OF COURSE, MAKING SURE THAT THE STOREFRONT IS REBUILT AND REPAIRED SO THAT IT CANNOT -- IT'S NOT AN ATTRACTIVE NUISANCE INVITING VAGRANTS AND WHATNOT.

SO TO, LIKE I SAID, MAKE IT NOT SUBSTANDARD IT DOESN'T NECESSARILY HAVE TO HAVE THE FULL HVAC AND ELECTRICAL THAT WOULD OPEN THE DOORS TO GIVE IT A CERTIFICATE OF

OCCUPANCY. >> OKAY, SO JUST LOOKING REAL QUICK, THIS IS JUST AS AN FYI, A -- OUR NEXT MEETING IS GOING TO BE -- OR NOT NEXT MEETING, THE MEETING AFTER THAT IS GOING TO BE -- NOPE. THAT'S NOT IT.

SEPTEMBER 2ND WHICH WOULD PUT US INSIDE THE 30 DAY, A MEETING AFTER THAT WOULD BE THE 16TH WHICH WOULD ACTUALLY GIVE AN EXTRA WEEK OR TWO IN THERE IF WE CHOSE TO TABLE. I JUST WANT TO MAKE SURE EVERYBODY --

>> DO WE HAVE ANOTHER MEETING BECAUSE OF THE TAX RATE? IS THERE --

>> ON THE 9TH.

>> THE 9TH, I BELIEVE.

>> IT WAS ABOUT A YEAR AGO WE HAD A SITUATION LIKE

THAT. >> DO WE CREATE ANY BARRIERS WITH TABLING IT, JULIE OR -- DO WE CREATE ANY BARRIERS FOR THE OWNER AS FAR AS PERMITS OR PROGRESS WITH JUST TABLING IT, THE 30 DAYS?

>> NO STAFF CAN CONTINUE TO WORK WITH THEM DURING THE PERIOD.

>> I MEAN, WE DID URGENTLY RECOMMEND THIS BUILDING BE REPAIRED.

WE DO FEEL LIKE IT CAN BE REPAIRED BUT IF IT CONTINUES IN ITS CURRENT STATE, IT WON'T BE ABLE TO BE REPAIRED SOYSOY IN 30 DAYS NOTHING HAS BEEN DONE AND CONTINUES OBVIOUSLY WE WOULD BE SEEKING IT TO BE DEMOLISHED BECAUSE WE WANT TO SEE THIS BUILDING BE REPAIRED OR GO AWAY.

A CHOICE IS MADE RATHER THAN JUST LETTING IT CONTINUE AS IS.

>> AND THE PERMIT, DID I UNDERSTAND CORRECTLY THE PERMIT FOR THE WORK HAS ALREADY BEEN ISSUED.

>> YES. >> I THINK, YOU KNOW, PART OF MY THOUGHT PROCESS ON IT, THOUGH, IS I HAD A LIKE TO SEE IT REPAIRED BUT I'D LIKE TO SEE IT REPAIRED TO THE POINT IT COULD BE USED, NOT REPAIRED TO THE POINT THAT IT NO LONGER SHOULD BE DEMOLISHED.

YOU KNOW, IF WE'RE GOING TO END UP WITH A VACANT BUILDING THAT'S JUST GOING TO CONTINUE -- POTENTIALLY DETERIORATER FURTHER, I MEAN, MY ASSUMPTION IS THAT THEY WOULD RENOVATE IT AND BE ABLE TO HAVE IT USED.

>> I DON'T KNOW THAT OUR CODE HAS A -- HAS TO BE USED, YOU KNOW. AS LONG AS THEY GET PAST THE --

>> MINIMUM STANDARDS.

>> -- THEN AT THAT POINT YOU LET THE MARKET DICTATE USE BECAUSE THESE GENTLEMEN HAVE THE INCENTIVE TO PUT IN THE CONDITION IT CAN BE USED TO RENT IT OUT OR SELL

IT. >> SEEING THE TAGS ON IT MAKES ME THINK, YOU KNOW, OKAY, RIGHT NOW IT'S VACANT, WELL, IT COULD BE RENOVATED AND STILL BE VACANT.

>> I THINK THERE'S ONLY SO MUCH WE CAN

DO. >>

YEAH. >> TO BE

HONEST. >> THERE WILL BE A CONSIDERABLE COST TO GET IT OUT OF ITS SUBSTANDARD CONDITION.

>> AND I WOULD THINK THAT ONCE YOU SUNK THAT COST INTO IT YOU'LL GO AHEAD AND GET IT IN A CONDITION TO DO SOMETHING WITH.

>> THAT WOULD ALSO BE MY HOPE.

>> OKAY.

>> SO -- IF.

>> LOOKING FOR A MOTION?

>> I SAY WE TABLE THIS FOR AT LEAST 30 DAY.

>> OKAY.

>> UNTIL WHICH MEETING?

>> SEPTEMBER 9TH.

>> OKAY.

>> I SECOND THAT.

>> OKAY, SO WE'VE GOT A MOTION TO TABLE THIS MATTER UNTIL OUR SPECIAL MEETING I BELIEVE ON SEPTEMBER 9TH.

>> AND BEFORE WE VOTE, COULD WE ASK THE PROPERTY OWNER IF THAT WORKS FOR THEM. I THINK IT DOES, BUT BEFORE WE --

>> SORRY, YEAH, THAT DEFINITELY WORKS FOR US, AND LIKE WHERE YOU GUYS WERE MENTIONING ABOUT PUTTING IT BACK IN ORDER FOR USE, SO THAT'S BASICALLY THE PLAN, SO THE LEASEE, IF WE SIGN SOMEONE WHO WOULD LEASE IT WOULD TAKE THE COST TO PUT IN THE MECHANICAL AND HVAC AND THINGS LIKE THAT.

>> OKAY.

>> 30 DAYS JUST SEEMS TO BE TOO SHORT FOR ME.

>> IT SEEMS TOO SHORT TO ME BUT WHEN HE COMES BACK IF HE'S MADE PROGRESS THEN I THINK WE CAN REVISIT AT THAT POINT.

>> WE GOT A WINDOW TO MOVE FORWARD IS BASICALLY WHAT

[00:55:01]

>> COUNCIL, IF I MAY ADD YOU CAN ALSO ASK FOR A DETAILED PLAN AT THAT TIME THAT MIGHT ASWISS IN YOUR DECISION-MAKING.

>> GOOD IDEA. OKAY. ALL RIGHT.

SO WE'VE GOT A MOTION, A SECOND TO TABLE THIS UNTIL OUR SEPTEMBER 9TH MEETING. IS THERE ANY DISCUSSION ON THE MOTION TO TABLE? SEEING NONE ALL IN FAVOR A

AYE. >> AYE.

>> ANY OPPOSED? OKAY.

[2. Consideration of an appeal of the Building Standards Commission's orde...]

>> THANK YOU. >> I HOPE YOU CAN GET IT BACK TO WHERE IT NEEDS TO BE. WITH THAT WE WILL MOVE ON TO ITEM E2.

>> IT IS A RESOLUTION CONSIDERING AN APPEAL OF THE BUILDING STANDARDS COMMISSION'S ORDER TO DEMOLISH THE STRUCTURE AT 1205 EAST SANTA ROSA STREET.

>> MISS FULGHAM.

>> THIS PROPERTY WENT TO THE JULY 22ND BUILDING STANDARDS COMMISSION MEETING AND WAS APPEALED.

THIS PROPERTY IS IN A LITTLE BIT WORSE SHAPE.

IT IS A CONCRETE BLOCK STRUCTURE ON THE FIRST FLOOR WITH A WOODEN STRUCTURE ON THE SECOND FLOOR AND THERE ARE MAJOR STRUCTURAL FAILURES THROUGHOUT THAT REALLY PROBABLY IS BEST TOLD THROUGH PHOTOGRAPHS. SO AS YOU CAN SEE FROM THE EXTERIOR, THERE'S A LOT OF VEGETATION COVERING THE BUILDING BUT THERE ARE A LOT OF HOLES IN THE SIDING THAT IS EXPOSING THE ENTIRE ROOF AND UPPER AREA TO, YOU KNOW, WEATHER.

THIS WHOLE -- EXISTS THROUGHOUT, FACIE AND SOFFIT BOARDS ARE ALMOST COMPLETELY ROTTED THROUGH.

THERE'S QUITE A FEW STRUCTURAL CRACKING EVIDENCED JUST THROUGHOUT THE ENTIRE BUILDING.

THESE LARGE CRACKS ARE PARTICULARLY WORRISOME AND BASICALLY SHOW HOW FAR GONE THE BUILDING REALLY IS.

IT HAS HAD FIRE DAMAGE, EVIDENCE ON THE INSIDE. HERE'S SOME MORE STRUCTURAL CRACKS IN RAY DIFFERENT LOCATION. THE STRUCTURAL CRACKS ARE REALLY THROUGHOUT EVERY SINGLE FACADE, EVERY SINGLE SIDE OF THIS BUILDING, SOUTH, EAST, AND WEST AND THEN THE WOOD ROT EXISTS ALMOST THROUGHOUT THE BUILDING IN ALL WINDOWS AND TRIM BOARDS.

AND HOLES IN THE ROOF. HERE'S THE INTERIOR.

SO THERE'S NOT A VALUE INSIDE WITH FINISHES, A LOT OF IT IS IN ITS GUTTED STATE. IT DOESN'T APPEAR TO HAVE EVER HAD ANY MODERN CONVENIENCES LIKE MODERN WIRING, A LOT OF THE KNOB AND TUBE. SO INTERIOR ROT BECAUSE, OF COURSE, HUGE PORTIONS ARE EXPOSED TO ALL THE ELEMENTS BECAUSE OF THE ROOF AS WELL AS THE CRACKS ALSO AND MOISTURE SEEPS THROUGH SO IT'S ESSENTIALLY OPEN TO THE ELEMENTS AND IS REALLY AN ENVIRONMENT THAT IS ACCELERATING WOOD ROT. STAFF CONCURRED WITH THE BUILDING STANDARDS COMMISSION MOTION AND ORDER THAT THIS BUILDING IS UNSAFE AND OVER 50% OF ITS VALUE HAS DETERIORATED.

AND DO RECOMMEND UPHOLDING THE BUILDING AND STANDARDS COMMISSION ORDER FOR THIS PROPERTY.

>> OKAY. ARE THERE ANY QUESTIONS FOR MISS FULGHAM?

>> ON THE DOCUMENT THERE WERE TWO OWNERS OF TWO DIFFERENT NAMES. THERE WAS AN OWNER AND THEN SOMEONE ELSE BUT THEN THERE WAS ANOTHER OWNER LISTED AS WELL AND I COULD GO BACK AND LOOK.

>> SO THERE WAS AN OWNER AND ANOTHER INTERESTED PARTY THAT ATTENDED THE MEETING AND SPOKE BUT THERE WAS ANOTHER OWNER ON THE TITLE REPORT THAT WAS PROVIDED THE NOTICE THAT SUBMITTED THE APPEAL LETTER.

>> DO YOU HAVE ANYBODY TO SPEAK TO THIS HERE TODAY?

>> NOT SURE.

>> HAVE THEY SUBMITTED A PLAN OR ANY TYPE OF JUST THE APPEAL? JUST THESE WORDS?

>> THEY HAD SPOKE AT THE MEETING THAT THEY HAD A PLAN TO SECURE A LOAN TO DO THE REPAIRS.

BUT THE REPAIRS ARE REALLY EXTENSIVE.

WHEN A BUILDING GETS TO THIS POINT IT'S REALLY EASIER TO JUST START OVER.

>> WE SAW THE PICTURES OF THE CRACKS IN THE CONCRETE WALL. WHAT WAS THE FOUNDATION LIKE?

>> I'LL HAVE TO CALL RICK UP. WHAT KIND OF FOUNDATION IS IT?

>> IT WOULD BE DIFFICULT TO TELL ON A CONCRETE SLAB, WHAT THE FOUNDATION LOOKS LIKE BUT THOSE ARE SIGNS THAT THAT IS

[01:00:03]

>> I THINK THE PICTURES ARE PRETTY CLEAR THIS ONE IS PRETTY FAR GONE, SO --

>> WHAT ARE OUR OPTIONS NOW?

>> I'M SORRY?

>> WHAT ARE OUR OPTIONS NOW?

>> I THINK OUR OPTIONS WOULD PRETTY MUCH BE THE SAME.

MISS BOONE?

>> YES, TO A MOTION TO UPHOLD THE BUILDING AND STANDARDS DEMOLITION ORDER OR REVERSE THEIR ORDER.

>> I MOVE WHY UPHOLD THE ORDER.

>> SECOND.

>> ALL RIGHT. I'VE GOT A MOTION AND A SECOND TO UPHOLD THE ORDER OF THE BUILDING AND STANDARDS COMMISSION. IS THERE ANY DISCUSSION ON THAT MOTION? SEEING NONE, ALL IN FAVOR SAY

AYE. >> AYE.

[1. Deliver Certified Tax Roll to Mayor and City Council . Jesús A. Garza,...]

>> ANY OPPOSED? AND THE MOTION PASSES.

ALL RIGHT. WE ARE GOING TO JUMP OVER ITEM E3 AND GO TO OUR CITY MANAGER'S REPORT. MR. GARZA HAS A COUPLE REPORTS FOR US SO I WILL TURN IT OVER TO YOU.

>> ALL RIGHT. GOOD EVENING, MAYOR AND COUNCIL, I ACTUALLY HAVE TWO SEPARATE PRESENTATIONS FOR YOU THIS EVENING.

USUALLY WE PRESENT THE CERTIFIED TAX ROLL AS PART OF A PRESENTATION OF THE BUDGET. HOWEVER, I FELT THAT THIS YEAR IN PARTICULAR IT WOULD BE BEST TO SEPARATE THOSE OUT SO THAT I CAN SHOW YOU JUST SOME ADDITIONAL GRAPHS AND JUST HAVE SOME ADDITIONAL CONVERSATION SPECIFIC TO THE CERTIFIED TAX ROLL BEFORE WE EVEN GET TO THE BUDGET SIDE OF THE EQUATION. I WANTED TO START OFF BY REMINDING YOU THAT VALUES ALL ACROSS THE STATE ARE BEING IMPACTED. COMMUNITIES ACROSS THE STATE ARE SEEING A PLATEAU OR REDUCTION IN PROPERTY VALUES, IT'S PUTTING CITIES IN POSITION TO HAVE TO MAKE CUTS IN THEIR RESPECTIVE BUDGETS. THESE ARE SOME HEADLINES WE'VE SEEN IN THE LAST FEW WEEKS.

AS I ALLUDED TO IN JUNE, WE'RE A LITTLE BIT SAFE FROM THIS TYPE OF MAJOR NEEDING TO MAKE MAJOR CUTS DUE TO OUR CONSERVATIVE BUDGETING APPROACH WHICH I'LL ELABORATE DURING THE BUDGET PRESENTATION SIDE OF IT BUT ALSO WANTED TO START OFF THIS PRESENTATION WITH THAT SAME MESSAGE, BECAUSE WE'RE NOT IMMUNE TO WHAT'S BEEN GOING ON ACROSS THE STATE.

AND, OF COURSE, WHAT I MEAN BY THAT IS THAT DECREASE IN PLATEAUING OF PROPERTY VALUES SO YOU SEE HIGHLIGHTED IN THE RED CIRCLE THAT OUR NTAV OFFICIALLY HAS DECREASED BY 1. 2% AND IT IS THE FIRST TIME IN SEVERAL YEARS THAT WE'VE SEEN A NEGATIVE IMPACT TO OUR NTAV AND SHOW YOU A HISTORICAL SLIDE.

SHORTLY I WANT TO SPEND TIME ON THE RELATIONSHIP BETWEEN THE RESIDENTIAL VALUES WHICH DID GO UP, SORRY, WENT DOWN BY 4. 34% AND THE COMMERCIAL AND INDUSTRIAL VALUES THAT WENT UP BY ALMOST 3% AND WANT TO HIT ON THIS WHAT APPEARS TO BE THIS CRAZY INCREASE IN EXEMPT PROPERTY. I DON'T HAVE A SLIDE FOR THAT OTHER THAN TO EXPLAIN TO YOU THAT THAT IS A CORRECTION OF THE VALUATION OF PUBLICLY OWNED PROPERTIES.

SEVERAL MONTHS AGO I GOT A HEADS-UP.

CITY, COUNTY, SCHOOL DISTRICTS WE DON'T PAY PROPERTY TAXES, BUT ALL OF OUR FACILITIES AND PROPERTIES ARE STILL GIVEN A VALUE AND SO THOSE PARTICULAR VALUES HAD NOT BEEN KEPT UP WITH, AND SO THIS WAS AN INTENTIONAL CORRECTION ON HER PART TO ADJUST THE VALUE OF EXCEPT PROPERTY PRIMARILY RELATED TO CITY, COUNTY AND SCHOOL DISTRICT OWNED PROPERTIES SO THAT'S WHY YOU SEE THE MAJOR INCREASE.

IF YOU GO TO THE BOTTOM YOU'LL SEE ALSO A PRETTY SUBSTANTIAL INCREASE TO THE VALUE OF OUR TAX INCREMENT REINVESTMENT ZONE AND HAVE A COUPLE OF SLIDES THAT TAKE A DEEPER DIVER INTO THAT AS WELL.

A GLOBAL VIEW ON THIS. THIS SHOWS THE VALUES GROWING OVER TIME AND YOU CAN SEE HOW HI WE'VE SEEN AN INCREASE OF ALMOST 50% IN THOSE VALUES SO OBVIOUSLY THERE'S BEEN BEEN AN INCREASE IN VALUES THAT WE'VE ALL BENEFITED FROM OVER THE LAST FIVE YEARS WHICH ARE EASIER TO SEE IN THIS SLIDE.

THIS GOES TO 2010 BECAUSE I THOUGHT IT WOULD BE PRUDENT AND APPROPRIATE TO SHOW YOU THE HISTORY AND HUGH THEY EBB AND FLOW DEPENDING ON WHAT'S GOING ON. AS AN EXAMPLE, I WASN'T HERE FOR THIS BUT MANY OF YOU RECALL THE IMPACT OF THE EAGLE FORD SHOW AND ALL OF THAT MOVEMENT THAT HAPPENED BETWEEN 2012 AND 2015 AND SO YOU START TO SEE THAT IMPACT THERE.

OF COURSE, YOU SEE WHAT HAPPENED IN 2018 AFTER HARVEY.

THAT IS COMMON RIGHT AFTER ANY KIND OF NATURAL DISASTER,

[01:05:04]

AND I WANT YOU TO REMEMBER WHAT HAPPENED IN 2018 BECAUSE I'LL REMEMBRANCE THAT LATER IN A DIFFERENT SLIDE.

BUT YOU SEE THE DRASTIC INCREASES IN VALUES THAT OCCURRED IN '21 THROUGH '24 AND THAT'S WHAT IS DRIVING THE FACT THAT OVER THE LAST FIVE OR SIX YEARS WE'VE SEEN THAT MAJOR INCREASE IN OUR NET TAXABLE APPRAISED VALUES. NOW, WE KNOW THAT THAT WAS CAUSED -- EXCUSE ME, THAT WAS CAUSED BY A NUMBER OF FACTORS RANGING FROM, YOU KNOW, INFLATION, THAT WAS CAUSED BY DISRUPTIONS CAUSED BY THE PANDEMIC.

WE KNOW THAT THERE WAS THE LOW INTEREST RATES AT THE TIME THAT FACILITATED GROWTH AND KNOW THAT THERE WAS A LOT OF STIMULUS FUNDS THAT WERE CIRCULATED IN THE ECONOMY THAT STEMMED FROM THE PANDEMIC, AND SO THERE WAS JUST A LOT OF THINGS THAT WERE HAPPENING AT THE SAME TIME THAT CAUSED, OF COURSE, MARKET VALUES TO GO UP AND REAL ESTATE, RIGHT? WE ALT SAW THAT HAPPEN AND THERE IS A DIRECT CORRELATION BETWEEN REAL ESTATE MARKET VALUE AND ASSESSED VALUE SO THAT'S WHAT DROVE A LOT OF THAT UP SO WHAT WE'RE SEEING NOW, OF COURSE, IS JUST THE REALITY THAT THAT WAS NOT GOING TO BE SUSTAINABLE LONG- TERM AND WE'RE SEEING IT IN MARKET VALUES, RIGHT? WE'RE SEEING THAT THE COST OF HOMES, FOR EXAMPLE, IS BEGINNING TO GO DOWN.

IT'S BECOMING A BUYER'S MARKET, RIGHT? AND SO THINGS ARE JUST CHANGING IN THE REAL ESTATE WORLD AND SO CONSEQUENTLY, THAT'S BEING IMPACTED BY THE ASSESSED VALUES, AS WELL. ONE OF THE THINGS THAT I'D LIKE TO ALSO POINT OUT FROM A HISTORICAL STANDPOINT SOME OF YOU MAY RECALL BACK IN 2020 THAT WE STARTED TO BRING TO LIGHT THAT THERE WAS THIS DIVERSION THAT WAS TAKING PLACE BETWEEN RESIDENTIAL VALUES AND COMMERCIAL VALUES.

IT'S HARD TO SEE IN THIS GRAPH, BUT IT WAS HAPPENING BETWEEN 2016 AND 2020 AND THAT'S BETTER -- OOPS, SORRY, WRONG WAY.

AND YOU CAN BETTER SEE THAT HERE HOW BETWEEN 2016 AND 2020 WE SAW AN INCREASE IN RESIDENTIAL VALUES OF 9% AND DURING THAT SAME TIME FRAME WE SAW A REDUCTION IN THE COMMERCIAL AND INDUSTRIAL BY 4% SO THAT'S THAT SEPARATION I'M REFERRING TO AND SOME MAY RECALL ME VERBALIZING FIVE YEARS AGO NORMALLY THEY GO UP AND DOWN TOGETHER.

WHENEVER THEY'RE NOT, IT'S A SIGN OF SOMETHING IS GOING ON.

AND SO THAT'S WHEN THERE WAS A LOT OF CONVERSATION AROUND EVALUATING THE APPRAISAL DISTRICT, SOME OF THAT ALSO WAS AS A RESULT OF THE STUDY WE CONDUCTED IN 2020 THAT SPECIFICALLY OUTLINED SOME DISCREPANCIES IN THE VALUATIONS OF COMMERCIAL PROPERTIES, SPECIFICALLY IN THE DOWNTOWN AREA AND SO THERE WERE JUST A LOT OF QUESTIONS THAT WERE BEING ASKED OF THE APPRAISAL DISTRICT IN THAT 2020 TIME FRAME BECAUSE OF WHAT THE DATA WAS TELLING US AND, OF COURSE, AS I MENTIONED WE HAD THE PANDEMIC WHICH CAUSED VALUES TO GO UP SO YOU CAN SEE IF I GO BACK TO IN THAT BOTH COMMERCIAL AND RESIDENTIAL WERE GOING UP. THEY WERE TRENDING TOGETHER BETWEEN 2020 AND 2024 OR 2023, I SHOULD SAY, AND 2024, SORRY, THEY STARTED TO TREND UP TOGETHER IS WHAT I'M GETTING AT AND NOW FOR 2025 YOU'RE BEGINNING TO SEE WHAT I DESCRIBED WHICH IS A NEGATIVE OR A REDUCTION IN RESIDENTIAL AND AN INCREASE IN COMMERCIAL. AND SO ALL IN ALL BETWEEN 2020 AND 2025 YOU SEE THAT RESIDENTIAL HAS GONE UP 29% AND COMMERCIAL HAS GONE UP 68%. AND SO WHETHER INTENTIONAL OR NOT, THERE'S BEEN THIS CORRECTION, IF YOU WILL, OF VALUES THAT HAS TAKEN PLACE OVER THE LAST FIVE YEARS AND TO SOME EXTENT, SOME MIGHT ARGUE IS CONTINUING TO HAPPEN IN 2025. ONE OF THE THINGS THAT ALSO I THINK IS IMPORTANT TO UNDERSTAND IS THE RELATIONSHIP BETWEEN NEW IMPROVEMENTS AND ONGOING VALUES. AND SO AS AN EXAMPLE, CURRENTLY FOR 2025 THIS IS THE VALUE FOR NEW IMPROVEMENTS, WHICH IS ACTUALLY THE SECOND LOWEST MARK THAT WE'VE HAD IN TEN YEARS.

AND SO THAT SPEAKS TO THE STABILIZATION OF THE MARKET, THAT SPEAKS TO THE FACT THAT GROWTH IS NOT TAKING PLACE OR WAS NOT LAST YEAR AT LEAST.

AND IT JUST SPEAKS TO THE STATUS OF WHY OUR NTAV IS WHERE IT'S AT AND SETS THE FOUNDATION FOR THE CONVERSATION WE NEED TO HAVE ON THE TAX RATE.

ONE THING I'LL NOTE IS THAT SIMILAR TO THE PREVIOUS SLIDE, THIS ALSO TELLS US KIND OF WHEN THINGS ARE GROWING SO THIS DOESN'T GO PAST 2016 BUT IF I WERE TO SHOW YOU A FEW ADDITIONAL YEARS YOU WOULD SEE THAT THERE WERE SOME NEW IMPROVEMENTS THAT WERE AT A PRETTY HEALTHY CLIP IN THAT 2014, '15, '16 TIME FRAME. THEN, OF COURSE, YOU SEE THE DIP IN 2019 WHICH COULD BE ATTRIBUTED TO ALSO A POST- HARVEY IMPACT ON THE ENVIRONMENT.

[01:10:01]

AND SO PART OF WHAT I WANT YOU TO KEEP ALSO FRONT AND CENTER AS WE CONTINUE OUR CONVERSATION ON VALUES AND TAX RATE, IS THAT UNFORTUNATELY FOR 2025 WE HAVE A DOUBLE WHAMMY EFFECT AND SO NOT ONLY DO WE HAVE A NEGATIVE NTAV BUT THE SECOND LOWEST VALUE FOR NEW IMPROVEMENTS. AND SO THAT -- KEEP THAT IN MIND AS WE CONTINUE OUR CONVERSATION BECAUSE NO OTHER YEAR DID WE EXPERIENCE THAT DOUBLE DIP.

OR THAT DOUBLE WHAMMY, IF YOU WILL, OF IMPACT.

NOW, THIS, OF COURSE, I'M GOING TO SHAMELESS PLUG, THIS IS WHY THINGS LIKE GROWING VICTORIA ARE IMPORTANT BECAUSE WE KNOW THAT IN ORDER TO HAVE FINANCIAL SUSTAINABILITY MOVING FORWARD, OUR TAX BASE NEEDS TO GROW AND SO THAT'S WHY, YOU KNOW, LAST YEAR, OF COURSE, DANIELLE IS VERY HEAVILY INVOLVED AND AT THE DIRECTION OF THE MAYOR WE TRIED TO BE INTENTIONAL WITH GROWING VICTORIA AND IF YOU'RE THINKING, I'VE BEEN HEARING A LOT ABOUT NEW THINGS THAT ARE GOING ON, IT DOES NOT REALLY TRACK AS TO WHY THE 2025 VALUE IS THE SECOND LOWEST IN TEN YEARS. WELL, THAT'S BECAUSE MANY OF THE THINGS THAT WE'VE CELEBRATED OVER THE LAST SIX MONTHS ARE NOT CAPTURED IN THAT VALUE FOR 2025, BUT HOPEFULLY WILL BE CAPTURED FOR THE ASSESSMENT NEXT YEAR AND SO THINK OF, YOU KNOW, AMAZON IS A PERFECT EXAMPLE. THAT'S NOT CAPTURED YET.

THE RETAIL I PROVEMENT GOING UP WILL BE UP IN THE FUTURE.

THERE'S MANY RESTAURANTS AND RETAIL STORES THAT HAVE BEEN IMPROVED OR HAVE BEEN FINISHED AND OPENED OVER THE LAST SIX MONTHS THAT AREN'T NECESSARILY CAPTURED IN THIS VALUATION FROM JANUARY. AND SO, AGAIN, THERE'S -- WE'RE MAKING PROGRESS IN BEING AGGRESSIVE WITH GROWING VICTORIA. IT'S JUST UNFORTUNATELY NOT CAPTURED IN THE SPECIFIC YEAR.

BUT HOPEFULLY SOME OF THAT, LIKE THE THINGS I JUST DESCRIBED, ARE CAPTURED IN THE FOLLOWING YEAR BUT THAT'S WHY FOCUSING ON GROWING VICTORIA IS VERY IMPORTANT.

AND ONE SUCCESSFUL EXAMPLE OF THIS IS RELATED TO DOWNTOWN AND SO BACK IN 2020 WHEN WE DID THAT STUDY OR LAND USE FISCAL ANALYSIS IT WAS INTENTIONAL WITH RECOMMENDING WE KNOW DISCUSS ON REINVESTMENT WITH THE IDEA THAT INVESTING RESOURCES INTO OLDER EXISTING NEIGHBORHOODS WHICH DOWNTOWN IS PART OF THAT, THAT THAT'S THE BEST WAY TO STABILIZE AND GROW PROPERTY VALUES IN THOSE RESPECTIVE AREAS. AND SO OUR INTENTIONAL FOCUS ON DOWNTOWN STARTED TO REALLY KIND OF INCREASE IN ITS FORCE STEMMING FROM THAT STUDY, AND IT WAS AMPLIFIED AFTER WE COMPLETED THE DOWNTOWN MASTER PLAN IN 2021, WHICH MADE A QUICK -- MADE SOME RECOMMENDATIONS FOR SOME QUICK WINS.

I'M NOT GOING TO WALK YOU THROUGH THESE BUT THIS WAS A TABLE THAT WAS SHOWN AS -- AT THE CONCLUSION OF THE DOWNTOWN MASTER PLAN THAT HIGHLIGHTED SOME RECOMMENDATIONS AND SO THE PLAZA EXPANSION WAS ON PHILIPPINE AS A HIGH IMPACT PROJECT AND SUCCEEDED IN THAT. THERE'S MANY OTHERS IN HERE RANGING FROM CAPITAL IMPROVEMENTS TO PROGRAMMATIC IMPROVEMENTS TO EVENTS, TO TECHNOLOGICAL ENHANCEMENTS AND QUITE A BIT OF RECOMMENDATIONS HERE. NOW, WE KNEW AT THE TIME THAT WE WERE GOING TO NEED AN ONGOING REVENUE SOURCE TO BE ABLE TO FOCUS ON DOWNTOWN LONG TERM.

AND SO ONE OF THE RECOMMENDATIONS THAT CAME FROM THE DOWNTOWN MASTER PLAN WAS THE CREATION OF A TAX INCREMENT REINVESTMENT ZONE WHICH WE ESTABLISHED IN 2021 AND WAS -- WE WERE JOINED BY THE NAVIGATION DISTRICT AND VICTORIA COLLEGE IN THAT EFFORT AND ULTIMATELY THAT TAX INCREMENT REINVESTMENT ZONE WAS STARTED IN HOPES THAT IT WOULD BUILD SOME MONEY OVER TIME AND WE COULD START LEVERAGING THAT TO CONTINUE OUR INVESTMENT IN DOWNTOWN. WE KNEW THAT IT WAS GOING TO TAKE SEVERAL YEARS BEFORE THE TOURISTS STARTED TO SEE SOME MONEY AND SO IN THE MEANTIME, WE DECIDED TO WORK WITH THE DEVELOPMENT CORPORATION TO FUND GRANT PROGRAMS FOR DOWNTOWN, HELP FUND MAIN STREET.

WE STARTED TO REALLY INCREASE OUR DEPENDENCY, IF YOU WILL, FOR DOWNTOWN CENTRIC THINGS.

THAT POTENTIALLY HAS REACHED A POINT WHERE WE CAN START HAVING THE CONVERSATION ABOUT TRYING TO TRANSFER SOME OF THAT FINANCIAL RESPONSIBILITY TO THE TAX INCREMENT REINVESTMENT ZONE OF WHAT I SHOWED YOU EARLIER THAT THE TAX INCREMENT REINVESTMENT ZONE IS SEEING A HUGE INCREASE IN ITS VALUE AND WHAT I FIND INTERESTING IS THAT THE INCREASE IN VALUE WITHIN THE BOUNDARY OF THE TAX INCREMENT REINVESTMENT ZONE IS REPRESENTATIVE OF ALMOST THE FORCE OF THE INCREASE IN

[01:15:02]

AND SO WITH THAT I'LL FINISH THE PRESENTING OF THE PROPERTY TAX ROLLS WITH JUST SUMMARIZING ONCE AGAIN WHAT THEY ARE.

OVERALL DECREASE OF 1.2%. A DECREASE IN RESIDENTIAL 4.3%.

AN INCREASE IN COMMERCIAL OF 2.8% AND, OF COURSE, A BIG INCREASE WITHIN OUR TAX INCREMENT REINVESTMENT ZONE WHICH THAT MONEY CAN ONLY BE UTILIZED FOR PROJECTS WITHIN IT. AND WITH THAT I'M HAPPY TO ANSWER ANY QUESTIONS YOU MIGHT HAVE ON THE VALUES PART OF IT.

>> YOU SAID YOU WERE GOING TO COME BACK TO 2019 AND IF YOU DID GO BACK TO IT, I

MISSED IT. >> IT'S IN

MY NEXT PRESENTATION. >> OKAY.

SORRY. >> THAT'S OKAY.

>> ANY OTHER QUESTIONS? ON THAT PART? OKAY. ARE YOU CHANGING IT OR DID I

[2. Deliver Fiscal Year 2025-2026 City of Victoria Proposed Annual Budget ...]

JUST. >> OKAY, NOW WE GET TO THE GOOD PART. VERY EXCITED TO PRESENT TO YOU FISCAL YEAR 2025/2026 BUDGET, VERY SIMILAR FORMAT OF A PRESENTATION AND FLOW THAN CONSISTENT WITH WHAT WE DID IN JUNE. SOME OF THIS MIGHT BE REPETITIVE TO YOU BUT I WANT TO BE MINDFUL WE MIGHT HAVE NEW VIEWERS, MORE PEOPLE PAYING ATTENTION TO THIS PARTICULAR MEETING SO I WANT TO MAKE SURE I'M AS THOROUGH AS I WAS IN JUNE IN PRESENTING THE FISCAL YEAR 2026 BUDGET BUT BEFORE I DO I WANT TO GIVE A QUICK SHOUTOUT TO OUR FINANCE FOLKS WHO PLAYED A HUGE ROLE IN PUTTING THIS TOGETHER, WESLEY, I'M NOT GOING TO GIVE GILBERT CREDIT ANYMORE BUT THAT, OF COURSE, INCLUDES WESLEY, MARISSA AND THANK YOU SO MUCH FOR EVERYTHING THAT YOU DID IN HELPING PUT THIS TOGETHER FOR US.

FOCUS ON PRESENTING THE BUDGET WITHIN THEMES, IF YOU WILL AND, OF COURSE, I ALREADY ALLUDED TO SOME OF THE IMPACT THAT THE REDUCED VALUES IS HAVING AND, OF COURSE, THAT'S THE ECONOMY. WE ALWAYS BUDGET FOR VERY CONSERVATIVELY AND SO WE HAVE HEALTHY RESERVES, OF COURSE, WE'RE ALWAYS PROPOSING A BALANCED BUDGET, OF COURSE, WE'RE GOING TO HAVE A CONVERSATION ON THE PROPERTY TAX RATE AND ALSO PLEASE TO CONFIRM THAT WE HAVE INCLUDED THAT HISTORIC PAY PROGRAM RECOMMENDATION THAT CAME OUT OF SUBCOMMITTEE WORK.

I'LL SPEAK A LITTLE ABOUT THE HEALTH PLAN AND, OF COURSE, THE CIP AND COMMUNITY CENTER HEAVILY DRIVING THE INCREASE FOR THE BUDGET FOR THIS YEAR AND HIGHLIGHT A FEW EXAMPLES OF HOW THIS IS A PUBLIC SAFETY CENTRIC BUDGET. SO, OVERALL WE'RE PROPOSING AN EXPENSE BUDGET OF 254 MILLION SO SIMILAR TO WHAT YOU SAW IN JUNE. REVENUE BUDGET OF 242 MILLION.

THERE'S A DELTA THERE OF ALMOST $12 MILLION AND AS WE HAVE DESCRIBED AND EXPLAINED IN THE PAST, THIS IS DUE TO THE FACT THAT WE HAVE ACCESS TO EXCESS CASH THAT WE APPLY TO ONE- TIME EXPENDITURES SO THAT ALLOWS US TO JUST DO MORE PROJECTS.

AND SO WHEN WE SAY THAT WE'RE PROPOSING A BAMMED BUDGET WHAT WE MEAN WE'RE PROPOSING A BALANCED BUDGET WHEN IT REFERS TO RECURRING REVENUE AND RECURRING EXPENDITURES SO THIS DELTA IS ATTRIBUTED TO ONE- TIME PROJECTS AND ONE- TIME EXPENDITURES WHICH WE'LL EXPLAIN SOME AS WE GO THROUGH THE PRESENTATION. SOME OF THE CHANGES IN TODAY'S FORMAL PROPOSED BUDGET IN COMPARISON TO WHAT WAS PRESENTED IN JUNE, VERY MINIMAL CHANGES, A MINOR ADJUSTMENT MADE TO THE GRANT REVENUE TO REFLECT THE ACTUAL GRANT ALLOCATION PER CIP PROGRAM AND ALSO MADE A COUPLE OF CHANGES ON THE EXPENSES SIDE AND SO WE, FOR EXAMPLE, REDUCED THE MOTOROLA CONTRACT DUE TO BASICALLY WE WERE GOING TO BE PARTNERING WITH TXDOT AND THAT WILL BE COVERING SOME MORE OF THE COSTS RELATED TO THE MOTOROLA CONTRACT. WE CORRECTS AN ITEM RELATED TO THE OVER 65 PREMIUMS. WE ADJUSTED THAT SERVICE PER OUR SCHEDULE. WE HAVE ADDED A COUPLE OF THINGS THAT ARE RELEVANT TO COMPENSATION AND ALSO RELEVANT TO THE SUBCOMMITTEE, SO WE, FOR EXAMPLE, NOW HAVE OFFICIALLY INCREASED THE PART-TIME HOURLY RATE TO EVERY PART- TIMER

[01:20:01]

WE DID ONE LAST YEAR. WE WEREN'T IN A POSITION TO RECOMMEND DOING ONE IN JUNE WHEN WE PRESENTED THE PRELIMINARY BUDGET, BUT WE ARE IN A POSITION TO PROPOSE DOING A PTO BUYBACK PROGRAM, NOT TO THE EXTENT WE DID LAST YEAR, BUT NONETHELESS A PTO BUYBACK PROGRAM.

AND SO HOW DOES THIS 254 MILLION COMPARE TO CURRENT YEAR? AND SO CURRENT YEAR IT'S $194 MILLION BUDGET.

IT'S NEARLY A $60 MILLION DIFFERENCE AND AS YOU CAN TELL BY THIS BAR CHART AT THE BOTTOM, IT'S PRIMARILY BEING DRIVEN BY THE CIP, PERSONNEL, WHICH, OF COURSE, CAN BE ATTRIBUTED TO THAT PAY PROGRAM, VEHICLES WHICH CAN BE ATTRIBUTED TO A MAJOR INVESTMENT IN PUBLIC SAFETY FLEET VEHICLES AS WELL AS OTHER ITEMS AND SO I'LL FOCUS ON THE TOP CONTRIBUTING ITEMS FIRST.

THE BIGGEST ONE BEING THE CIP AND SO THE COLUMN ON THE LEFT SHOWS WHAT THE CIP WAS FOR FISCAL YEAR 25 WHICH WAS $40 MILLION. YOU'LL SEE THAT GOING INTO FISCAL YEAR '26, WE THOUGHT WE WOULD HAVE A CIP WORTH ALMOST $33 MILLION BUT WE HAD SOME PRETTY BIG THINGS HAPPEN SINCE LAST YEAR WHEN WE PROJECTED OUT '26. PRIMARILY CAUSED BY THE CHANGE IN RESIDENTIAL DRAINAGE AND SO YOU'LL NOTICE ON THE RESIDENTIAL DRAINAGE ROW THAT THAT 9. 36 WAS BASICALLY MOVED FROM PHYSICAL KWAL YEAR '25 TO '26. THAT'S PHASE ONE OF BON AIR SO YOU MAY RECALL FROM DAVID'S CIP PRESENTATION LAST MONTH OR IN JUNE, I SHOULD SAY THAT WE ENDED UP NOT DOING BON AIR PHASE 1 AND JUST TOOK THAT MONEY AND NOW ARE APPLYING IT TO FISCAL YEAR '26 TO DO THOSE TWO PHASED. I GOT THE NEIGHBORHOOD WRONG? OH, MY BAD.

SORRY. THANK YOU. THANK YOU FOR INTERRUPTING ME WHEN I'M WRONG.

WELL --

>>.

RESIDENTIAL STREETS, MY APOLOGIES.

THE DRAINAGE, I DON'T KNOW IF YOU HEARD GILBERT ATTRIBUTED TO THE LONE TREE DRAINAGE PROJECT WHICH IS ONE OF THE PROJECTS THAT WE'RE AWAITING WORD ON THE CDBG MIT AND WHY IT SHIFTED BECAUSE THOSE PROJECTS ARE PROJECTS THAT ARE WE'RE RELYING ON THE CDBG MIT 4.

HE GETS CREDIT NOW FOR THE BUDGET.

THE BIGGEST IS THE COMMUNITY CENTER.

THIS TIME WE DIDN'T ANTICIPATE THAT WE WOULD ACTUALLY BE DOING THE COMMUNITY CENTER PROJECT AND SO YOU SEE THAT ALMOST $29 MILLION IN FISCAL YEAR '26. ALL IN ALL, IT INCREASED THE CIP TO ROUGHLY 79 MILLION. THAT'S DRIVING A BIG CHUNK OF THE INCREASE IN BUDGET YEAR OVER YEAR. THIS SHOWS JUST A VISUAL OF HOW WE'VE INCREASED OUR CIP FUNDING OVER THE LAST FEW YEARS, OF COURSE, IN '24 IT WAS HEAVILY DRIVEN BY THE PUBLIC SAFETY HEADQUARTER BUILDING AND NOW FOR FISCAL YEAR '26 IS BEING HEAVILY DRIVEN BY THE COMMUNITY CENTER PROJECT THE NEXT THING CONTRIBUTING OR THE DELTA IS THE HISTORIC PAPER THAT I ALLUDED TO. TO SAY IT'S A PRIORITY FOR US.

THAT'S A BIG PRIORITY FOR MYSELF AND EVERYBODY INVOLVED. WE'VE BEEN FORTUNATE TO DO THAT BECAUSE OF WHAT I SHOWED YOU IN THE PREVIOUS PRESENTATION. THAT WE SAW THOSE INCREASES BETWEEN 2021 AND 2024. THAT AFFORDED US THE ABILITY TO BE ABLE TO DO THIS AND SO IF WE WANT TO CONTINUE TO BE AGGRESSIVE WERE INVESTING IN OUR EMPLOYEES, AND WE'RE NOT SEEING THE INCREASE IN APPRAISED VALUES THAT WE BENEFITED FROM OVER THE LAST THREE YEARS WELL THEN WE NEED TO HAVE CONVERSATIONS ABOUT HOW WE'LL SUSTAIN THOSE MOVING FORWARD IF WE CAN'T DEPEND ON APPRAISED VALUES GOING UP DOUBLE DIGITS EVERY YEAR. OF COURSE, THE BIGGEST DIFFERENCE COMPARED TO WHAT YOU SEE HERE AND WHAT WE'RE PROPOSING FOR '26 IS, OF COURSE, THE INCLUSION AND INVOLVEMENT OF THE SUBCOMMITTEE WHICH IS PUT TOGETHER LATE BASICALLY

[01:25:01]

IT IS A POLICY CENTRIC DECISION AND LOOKED AT DATA AND ANALYZING COST OF LIVING DIFFERENTIAL TO MAKE SURE IT WAS ADJUSTED SINCE COMPARING US TO SUGAR LAND IS NOT FAIR IF YOU DON'T TAKE THE COST OF LIVING COMPONENT INTO ACCOUNT SINCE IT'S MORE EXPENSIVE TO LIVE THERE THAN VICTORIA AND WANTED TO BE MINDFUL OF THOSE THINGS WHILE AT THE SAME TIME OF BEING MINDFUL OF THAT SUSTAINABLE COMPONENT I ALLUDED TO BECAUSE THE COMMITTEE WANTS TO CONTINUE AND WE WANT TO CONTINUE TO BE AGGRESSIVE. SO ULTIMATELY THERE WAS A PROPOSAL THAT WAS MADE WHICH, OF COURSE, HITS ON A FEW CATEGORIES, I'M NOT GOING TO SPEND A LOT OF TIME AND GO THROUGH THIS FAST FOR SAKE OF TIME BUT WE OF COURSE ARE MAKING A RECOMMENDATION TO IMPROVE PAY FOR POLICE, FIRE, PUBLIC WORKS AND EVERYBODY ELSE, THIS IS JUST AN EXAMPLE OF WHAT THE NEW PAY STRUCTURE FOR POLICE LOOKS LIKE.

YOU GET A BETTER SENSE. IT SHOWING IT THIS WAY BECAUSE I WANTED TO SHOW WHAT THAT PAY INCREASE, THAT NET PAY INCREASE HAS BEEN OVER THAT SAME DURATION THAT, FIVE OR SIX YEARS I MENTIONED WE'VE BEEN INVESTING IN EMPLOYEES THAT ENTIRE TIME.

AND SO THIS REALLY SHOWS YOU THAT AGGREGATE IMPACT OF INVESTMENTS OVER THE FIVE YEARS, WHICH IS BEING HEAVILY DRIVEN BY THE FACT THAT IF NIS CALENDAR YEAR '6 WE ARE PROPOSING ALMOST $1.4 MILLION BEING UTILIZED JUST FOR POLICE.

AND SO OUT OF THIS BAR CHART, EVEN THOUGH OVER THAT SIX- YEAR PERIOD IT'S A 43% INCREASE, THE INCREASE IN STARTING PAY FOR POLICE OFFICER BETWEEN PHYSICAL KWAL YEAR '25 AND '26 IS 14% SO YOU CAN SEE LOOKING AT THE TABLE THAT FIVE YEARS AGO STARTING PAY WAS 45,000 AND WE'RE PROPOSING THAT TO BE 60,000.

AND SO THAT'S AA DIFFERENCE IN WHAT WE'VE BEEN ABLE TO DO OVER THE LAST FIVE OR SIX YEARS. FIRE, DOING THE SAME THING AND ONE OF THE BIGGEST DIFFERENCES BETWEEN POLICE AND FIRE, IT SEEMED WITH POLICE ONE OF THE BIGGEST CONCERNS WAS TRYING TO ATTRACT A NEW, IF YOU WILL, POLICE OFFICER WHILE ALSO KEEPING THE POLICE OFFICERS IN THAT FIVE TO TEN- YEAR EXPERIENCE OR WHAT WE REFER TO AS OUR SENIOR POLICE OFFICERS AND THAT'S WHERE THE DATA PROFFERED WE WERE FURTHEST BEHIND. THE FIRE DEPARTMENT WAS A LITTLE DIFFERENT. THE FIRE DEPARTMENT SHOWED THAT WE WERE MORE BEHIND IN RANK POSITIONS AND SO THAT'S WHAT WE'VE ADJUSTED FOR HERE AND SO, FOR EXAMPLE, IN THIS PARTICULAR TABLE HERE WE'RE BASICALLY SHOWING A 10% INCREASE IN STARTING PAY FOR A FIREFIGHTER, BUT THE POSITIONS OF ENGINEER, LIEUTENANT, AND CAPTAIN ALL ARE PROPOSED TO GO UP MORE THAN 20%. THAT IS HOW FAR BEHIND WE WERE IN THOSE RANKED POSITIONS. WHICH IS -- WHICH MANY OF YOU KNOW WE'VE LOST A LOT OF EXPERIENCED FOLKS IN THE FIRE DEPARTMENT. SO HOPEFULLY THIS HELPS US RETAIN FOLKS BETTER MOVING FORWARD.

WE CLARIFIED AND MADE SOME IMPROVEMENTS TO THE TRACK AS WELL SO THE EMS STARTING PAY IS ALSO GOING UP 10%.

WE CLARIFIED THE NEW STRUCTURE UNDER THE DIRECTION OF OUR NEW FIRE MARSHAL AND SO SHE'S DONE A GREAT JOB OF PUTTING HER TEAM TOGETHER. ALL IN ALL IT'S ABOUT A $1.3 MILLION DEVELOPMENT FOR THE FIRE DEPARTMENT AS WELL AND YOU CAN SEE WHEN WE LOOK AT THAT SIX- YEAR COMPARISON THAT THE INCREASE FOR STARTING PAY FOR A FIREFIGHTER HAS GONE UP 38%. MAYBE NOT QUITE AS MUCH AS POLICE, BUT STILL IN THE HIGH 30S.

THEN WE'LL TALK BRIEFLY ABOUT PUBLIC WORKS.

THE BIGGEST THING WE WERE TRYING TO CLEAN UP IS CLEAR PROGRESSION SO WE'VE ADJUSTED THE PAY STRUCTURE TO MORE CLEARLY SHOW PROGRESSION WITHIN THE DEPARTMENT. THE COMMITTEE HAS SHOWN A LOT OF INTEREST AND SO HAVE WE AND SO HAVE THE DIRECTORS IN MAKING SURE THAT WE HAVE THIS CLEAR AS A PICTURE FOR EVERY DEPARTMENT AND THAT IT'S VERY CLEAR FOR ANYBODY IN TRAINING THE ORGANIZATION, WHAT THEIR POE RE LOOK LIKE.

AND SO WE CLEANED THAT UP FOR PUBLIC WORKS AS WELL

[01:30:02]

THE COST TO PUBLIC WORKS IS NOT AS MUCH.

IT'S ROUGHLY $400,000. YOU SIGH, EE,EE, THOUGH, EVEN THOUGH THAT INVESTMENT ISN'T AS GREAT THAT PERCENTAGE INCREASE IN NET PAY IS ALSO IN THE HIGH 30 PERCENTS. THE REASON WHY POLICE AND FIRE INVESTMENTS ARE MUCH GREATER IS OBVIOUSLY BECAUSE THERE'S MORE OF THEM.

AND SO ANY TIME THAT WE'RE LOOKING AT MAKING ADJUSTMENTS TO THE POLICE AND FIRE DEPARTMENT THAT HITS THE BUDGET TO A GREATER DEGREE BECAUSE WE HAVE LITERALLY HUNDREDS OF THEM COMBINED.

WITH SOLID WASTE WE ARE RUNNING INTO AN ISSUE WITH COMPETITION IN THE PRIVATE SECTOR AND SO WE RA JUSTED THEIR PAY ACCORDINGLY TO BE MORE COMPETITIVE. THIS HAS MADE A DIFFERENCE ANDAND MAKING A DIFFERENCE IN RECRUITMENT FOR CDL DRIVERS WITHIN SOLID WASTE. YOU'LL SEE THAT OVER THAT SAME SIX-YEAR PERIOD WE'VE ACTUALLY BEEN THE MOST AGGRESSIVE WITH OUR SOLID WASTE TRUCK DRIVERS.

A DEPARTMENT POSITION THAT PROBABLY IS TAKEN FOR GRANTED BUT IS EXTREMELY CRITICAL FOR OUR COMMUNITY. NOW, WHAT ABOUT EVERYBODY ELSE? AND SO WE WERE VERY INTENTIONAL IN TRYING TO PRIORITIZE THOSE AREAS I JUST WENT OVER BUT WE WERE ALSO WANTING TO TRY AND DO SOMETHING FOR EVERYBODY ELSE WHICH WE REFER TO AS GENERAL POPULATION AND SO WE WERE MINDFUL OF THAT ANALYSIS THAT I ALLUDED TO EARLIER THAT TAKES INTO ACCOUNT COST-OF-LIVING ADJUSTMENTS. BUT MORE IMPORTANTLY WE WANTED TO TRY AND FOR THE FIRST TIME INCLUDE÷÷ A TEN- YEAR FACTOR. MUCH OF THE FEEDBACK THAT WE'VE RECEIVED INTERNALLY IS THAT THERE'S JUST A LOT OF COMPRESSION, NOT ONLY BETWEEN RANKS OR THERE WAS, BUT COMPRESSION AS IT RELATED TO TENURE. WHAT I MEAN BY THAT 23 WE HAVEN EMPLOYEE WITH US 20 YEARS AND SOMEBODY THAT STARTED LAST YEAR, YOU KNOW, WE WANT TO MAKE SURE WE'RE TAKING INTO ACCOUNT A TEN- YEAR FACTOR THERE AND THAT THOSE INDIVIDUALS AREN'T NECESSARILY MAKING THE SAME. YOU CAN PROBABLY UNDERSTAND WHY A 20- YEAR EMPLOYEE MIGHT BE UPSET IF THEY'RE MAKING JUST AS MUCH AS THE PERSON THAT STARTED LAST YEAR. RIGHT? AND SO WE WANTED TO MAKE SURE WE COULD INCORPORATE A TEN- YEAR FACTOR SO OUR TENURED EMPLOYEES COULD FEEL MORE VALUED FROM A COMPENSATION STANDPOINT SO WE ADJUSTED THOSE THINGS AS PART OF THAT. WE IDENTIFIED THAT ROUGHLY 243 EMPLOYEES WERE ACTUALLY BELOW MARKET AND SO WE'RE RECOMMENDING SOME ADJUSTMENTS TO THEIR PAY THAT WOULD ALSO GO INTO EFFECT IN OCTOBER. THIS IS A LITTLE HARDER TO QUANTIFY BUT THESE ARE MORE ALL OVER THE PLACE, YOU KNOW, SOME ARE AS, YOU KNOW, LOW AS A COUPLE PERCENTAGE POINT, SOME ARE AS HIGH AS OVER 20% PAY AS WELL AND SO THEY'RE A LITTLE HARDER TO EXECUTIVE SUMMARY -- SUMMARIZE THEM FOR YOU BUT THERE ARE 243 INDIVIDUALS THAT WE CONSIDER GENERAL POPULATION THAT ARE SEEING A PAY INCREASE.

NOW, THE EXERCISE DID LEAD TO REALIZING THAT WE HAVE 142- ISH EMPLOYEES THAT ARE WITHIN THE MARKET RANGE AND SO FOR THESE PARTICULAR INDIVIDUALS RATHER THAN PROVIDING A PAY INCREASE, WE'RE PROPOSING DOING A THOUSAND DOLLAR STIPEND SO THAT AT LEAST EVERYBODY GOING INTO NEXT YEAR RECEIVES SOME FINANCIAL INCREASE WHETHER IN THE FORM OF A ONE- TIME STIPEND OR IN THE FORM OF A PAY INCREASE.

I MENTIONED EARLIER WE'VE INCORPORATED A PTO PROGRAM FOR FISCAL YEAR 2026 AND LEFT THE TIERS OF EXPERIENCE THE SAME. TO, AGAIN, BENEFIT TO A GREATER DEGREE THE EMPLOYEE THAT'S BEEN HERE LONGER. THAT'S VERY, VERY IMPORTANT TO US AND WAS VERY IMPORTANT TO THE COMMITTEE THAT WE JUST FIND AS MANY WAYS AS POSSIBLE TO BETTER SHOW OUR APPRECIATION TO THE LONG TENURED FOLKS AND START SHARING IT THIS WAY WITH THE PTO STRUCTURE ALLOWS US TO DO THAT. YOU'LL SEE THAT THE NUMBER OF HOURS THAT WE'RE PROPOSING COULD BE SOLD BACK FOR 2026 OR HALF OFOF AMOUNT OF HOURS THAT WE OFFERED UP LAST YEAR. THAT'S JUST A COST THING.

WHERE WE'RE TRYING TO BE MINDFUL OF COSTS.

WE ARE NOT CURRENTLY IN A POSITION WHERE WE COULD AFFORD A 1. 2 OR $1.3 MILLION BUYBACK PROGRAM SO PROPOSING THESE HOURS AS SHOWN HERE.

ONE OF THE THINGS THAT WE WANT TO BE VERY MINDFUL OF IS THAT WE DON'T WANT TO CAUSE AN EMPLOYEE TO BE LEFT WITH NO HOURS. WE -- SO PART OF THE REQUIREMENT WOULD BE THAT AN EMPLOYEE HAS TO MAINTAIN 40 HOURS IN THEIR BANK AND CAN ONLY SELL HOURS ABOVE THE 40, AND WE PLANPLAN TAKING THAT SNAPSHOT AND -- ON NOVEMBER 1ST SO THERE WOULD

[01:35:04]

WE KNEW THAT THE FINANCIAL PIECE OF IT WAS GOING TO BE IMPORTANT FOR OBVIOUS REASONS, OBVIOUSLY LAST YEAR THERE WERE CONVERSATIONS ABOUT, YOU KNOW, MAKING ADJUSTMENTS TO TRS AND TAX RATE IMPLICATIONS AND QUITE A BIT THAT WAS BEING TALKED ABOUT AND WE NEEDED TO MAKE SOME ASSUMPTIONS EARLY ON IN OUR WORK WITH THE SUBCOMMITTEE TO COME UP WITH A RECOMMENDATION.

WE KNEW RIGHT OFF THE BAT THAT HAVING CONVERSATIONS ABOUT TMRS WAS NOT ON THE TABLE AND THEY WEREN'T AND SO WE IN ESSENCE HAD TO COME UP WITH SOME OF THESE ASSUMPTIONS THAT YOU SEE HERE.

THIS IS LITERALLY THE EXACT SAME SLIDE THAT I SHOWED YOU IN APRIL WHEN WE PRESENTED THE RESULTS OF THE SUBCOMMITTEE WORK, WHICH SHOW AN IS ASSUMPTION THAT WE WOULD RECEIVE AN ADDITIONAL $500,000 IN INCREASED PROPERTY TAX REVENUE. IT SHOWS AN ASSUMPTION OF OTHER REVENUE INCREASES SUCH AS ON THE SALES TAX SIDE, AMBULANCE REVENUE SIDE.

IT ALSO SHOWS THE ASSUMPTION THAT WE WOULD IMPLEMENT A STORM WATER RATE AT SOME POINT WHICH, AS YOU KNOW, COULD FREE UP SOME RECURRING EXPENSES ON THE GENERAL FUND SIDE IF THE NEW STORMWATER FUND PICKS THOSE EXPENSES UP SO WE HAD TO MAKE SOME ASSUMPTIONS IN ORDER TO MAKE A RECOMMENDATION AND IMPORTANT TO KEEP IT IN MIND AS THIS PRESENTATION PROCEEDS.

I ALSO WOULD BE REMISS IF I DIDN'T ON BEHALF OF THE COMMITTEE VERBALIZE SOME GOALS THAT ARE STILL IN THE WORKS AND THAT ARE STILL PRIORITY ITEMS FOR THE COMMITTEE.

BECAUSE LOOKING AT THE COST OF THE PROPOSED PAY PROGRAM ISN'T SOMETHING THAT I WOULD RECOMMEND WE SOLELY LOOK AT IN A SNAPSHOT, BUT THAT WE BASICALLY ASK OURSELVES, IS BEING AS AGGRESSIVE AS WE CAN BE WITH IMPROVING PAY AND BENEFITS SOMETHING THAT WE WANT TO DO EVERY YEAR OR IS IT SOMETHING THAT WE WANT TO JUST TRY AND TACKLE WHEN WE CAN, RIGHT, WE OBVIOUSLY HAVE BEEN ABLE TO DO THAT OVER THE LAST SIX YEARS EVERY YEAR.

BUT WE KNOW THAT WE'RE NOT GOING TO SEE THE INCREASE IN APPRAISED VALUES MOVING FORWARD TO THE EXTENT THAT WE SAW OVER THE LAST FIVE YEARS AND SO IT'S JUST IMPORTANT THAT WE KEEP IN MIND THAT EVEN THOUGH WE ARE PROPOSING HISTORIC PAY PROGRAM, THERE'S MORE INVESTMENT IN OUR EMPLOYEES THAT WE WANT TO EXPLORE WITH THE COMMITTEE DOING AND SO THESE INCLUDE, FOR EXAMPLE, MAKING SURE THAT WE CAN HONOR THE STEP PROGRAM PAY INCREASES FOR PUBLIC SAFETY. THE STEP PROGRAMS DUE BASICALLY PROVIDE AN INCREASE IN PAY EVERY OTHER YEAR SO WE WANT TO MAKE SURE THAT WE -- WHEN WE'RE THINKING ABOUT THE LONG- TERM FINANCIAL SUSTAINABILITY OF THE CITY WE KEEP IN MIND WE HAVE THOSE COMMITMENTS WE WANT TO FOLLOW THROUGH WITH.

WE KNOW THAT WE WANT TO TAKE A DEEPER DIVE INTO GENERAL POPULATION. OBVIOUSLY WE PRIORITIZE PUBLIC WORKS, PUBLIC SAFETY IN THIS PARTICULAR FISCAL YEAR, BUT THERE'S OBVIOUSLY A LOT OF OTHER POSITIONS THAT WE'RE ALSO STRUGGLING WITH FROM THE RECRUITMENT AND RETENTION STANDPOINT THAT ALSO WARRANT BEING AS AGGRESSIVE JUST NOT THIS YEAR, RIGHT? YOU KNOW, I MENTIONED THAT WE HAD OVER 140 POSITIONS THAT AREN'T EVEN SEEING A PAY INCREASE AT ALL IN FISCAL YEAR '26, RIGHT, AND SO WE WANT TO KEEP IN MIND THAT THERE'S SOME ADDITIONAL INVESTMENT THAT WE WANT TO EXPLORE.

WE KNOW THAT WE WANT TO EXPLORE THE MINIMUM WAGE, CURRENTLY IT'S AT $15.

AND 14 NOW FOR PART- TIMERS SO WE KNOW THAT'S AN ONGOING TOPIC OF CONVERSATION AND MORE IMPORTANTLY WE KNOW THAT IT'S A PRIORITY FOR THE COMMITTEE TO ENSURE THAT WE TEST THE MARKET EVERY THREE TO FIVE YEARS AND THAT WE'RE NOT STAGNANT WITH OUR PAY RANGES AND THINGS OF THAT SORT.

WE KNOW THAT THE MARKET IS GOING TO SHIFT.

NOW, OBVIOUSLY IT SHIFTED VERY AGGRESSIVELY DURING THE PANDEMIC. I DON'T ENVISION THAT MARKET SHIFTING AS AGGRESSIVE OVER THE NEXT THREE TO FIVE YEARS BECAUSE EVERY OTHER COMMUNITY IS SEEING WHAT WE'RE SEEING, RIGHT, A PLATEAUING OF VALUES BUT IT'S DEFINITELY SOMETHING THAT WE WANT TO KEEP IN MIND WHEN WE'RE THINKING LONG-TERM FINANCIAL SUSTAINABILITY OF THE CITY.

I GUESS BEFORE A PROCEED I DON'T KNOW IF ANY MEMBER OF THE COMMITTEE WANTS TO ADD ANYTHING. HAVE I MISSED ANYTHING?

>> DID A GOOD JOB. >> OKAY.

OKAY, IN ADDITION TO MAKING A RECOMMENDATION FOR IMPROVED PAY FOR OUR EXISTING EMPLOYEES, WE'RE ALSO PROPOSING

[01:40:03]

SO THAT WE'RE NOT PUT IN A POSITION WHERE WE HAVE TO EVERY SO OFTEN MAKE A HUGE INVESTMENT AND SO HAVING SOMEBODY WHOSE FULL TIME JOB IS TO STAY ON TOP OF THE FLEET WOULD BE BENEFICIAL. THE POLICE RECORDS TECHNICIAN AND WHEN CHIEF YOUNG PROVIDED HIS REPORT EARLIER THIS YEAR, HE SHOWED A SIGNIFICANT INCREASE IN OPEN RECORDS REQUESTS FROM THE POLITICIAN RECORDS STANDPOINT AND SO THEY REALLY NEED THE INCREASED MANPOWER THERE TO KEEP UP WITH THE INCREASE IN OPEN RECORDS REQUEST AND AS I ALLUDED TO EARLIER, THE GROWING VICTORIA CAMPAIGN IS CRITICAL IF WE WANT TO ENSURE WE'RE DOING THE BEST WE CAN TO STAY UP TO DATE OR NOT STAY UP TO DATE BUT TO BE AS AGGRESSIVE AS WE CAN FOR GROWING VICTORIA FOR THE BENEFIT OF ALL AND RECOMMENDING ADDING A COMMUNICATIONS POSITION AS WELL TO BUILD PONG THE SUCCESS THAT ASHLEY AND HER TEAM HAVE BEEN A PART OF OVER THE LAST COUPLE OF YEARS. AND SO ALL IN ALL ONCE YOU ADD ALL OF THAT TOGETHER YOU ADD THE PAY PROGRAM, THE ONE- TIME EXPENDITURES OF THE STIPEND AND ADD THE NEW POSITIONS, YOU ADD THE BUYBACK PROGRAM WE'RE BASICALLY LOOKING AT A $5.3 MILLION INVESTMENT IN PERSONNEL.

WHICH, AGAIN, VERY HISTORIC. THIS IS JUST ANOTHERANOTHER THAT ILLUSTRATES THE VARRANCE ASPECT OF IT.

VARIANCE ASPECT OF IT. IT'S HEAVILY GENERAL FUND.

MOST OF OUR POSITION WITH PUBLIC SAFETY ARE GENERAL FOUND SO IT'S NOT A SHOCKER THAT THE BULK OF THE FINANCIAL HIT OF THAT MONEY IS IN THE GENERAL FUND.

WHICH, OF COURSE, IS PRIMARILY FUNDED THROUGH SALES TAX, PROPERTY TAX.

ONE OF THE OTHER BIGGEST THINGS THAT'S IMPACTING THE OVERALL BUDGET IS, OF COURSE, AS I'VE ALLUDED TO THAT LARGE ONE- TIME EXPENSE IN FLEET ACQUISITIONS.

AND SO I THINK IT'S IMPORTANT TO NOTE THAT OUT OF THE LIST OF ACQUISITIONS OVER $6 MILLION IS ATTRIBUTED TO PUBLIC SAFETY AND THAT INCLUDES NINE POLICE VEHICLES, FOUR AMBULANCES AND THREE PUMPERS. WE, OF COURSE, ALSO HAVE A COUPLE OF PUBLIC WORK CENTRIC ITEMS AND THE THREE AUTOMATED SERVICES FOR ENVIRONMENTAL SERVICES BUT, AGAIN, A VERY PUBLIC SAFETY CENTRIC BUDGET.

ANOTHER THING THAT'S INCORPORATED INTO THE OVERALL BUDGET IS, OF COURSE, ON THE EXPEND DI TUR SIDE IS OUR DEBT SERVICE AND SO THIS SIMPLY SHOWS A VERY MINIMAL VARIANCE COMPARED TO LAST YEAR AND NOT IN A POSITION TO DO A BOND REDEMPTION PROGRAM. WE JUST DO NOT HAVE THE EXCESS CASH FLOWING IN THIS UPCOMING YEAR THAT WE'VE HAD IN THE LAST FEW YEARS.

THIS, OF COURSE, IS NOT TAKING INTO ACCOUNT ANY NEW FUTURE DEBT THAT WE WOULD PLAN TO ISSUE.

THAT WILL COME BACK LATER WHEN I TALK ABOUT THE DEBT WE'LL ISSUE FOR THE COMMUNITY CENTER.

NORMALLY WHEN WE ISSUE DEBT WE DON'T REALLY SEE THAT BIG HIT UNTIL THE FOLLOWING YEAR.

THIS IS JUST AN ILLUSTRATION THAT SHOWS CURRENTLY WHERE WE SIT AS IT RELATES TO OUR DEBT SERVICE TO REMIND YOU THAT WE DO -- WILL CONTINUE TO SEE SOME DEBT CAPACITY FREEING UP OVER THE NEXT FIVE TO TEN YEARS. ANY QUESTIONS ON ANY OF THAT? OKAY. SO, ON THE REVENUE SIDE, THE PROPOSED -- THE PROPOSED REVENUE BUDGET FOR FISCAL YEAR '26 IS 242 MILLION.

THAT'S A DIFFERENCE OF 57 OR CLOSE TO $58 MILLION COMPARED TO FISCAL YEAR '25. AS YOU CAN SEE IN THE BOTTOM IT'S PRIMARILY BEING DRIVEN BY AN INCREASE IN BOND PROCEEDS WHICH IS DIRECTLY CONTRIBUTED OR ATTRIBUTED TO OUR LARGE CIP THAT I WENT OVER EARLIER. WE'RE ALSO SEEING THE CONTINUAL SHIFT OF THE MONEY RELATED TO CDBG MIT AND FLEET

[01:45:08]

AND SO THAT IS BASICALLY LEADING ME TO THE RECOMMENDATION OF THE VOTER APPROVAL TAX RATE OF 0.4820. WHICH IS AN INCREASE NO THE EXISTING TAX RATE BY BASICALLY A LITTLE OVER A CENT.

YOU'LL SEE AT THE VERY BOTTOM THAT THE IMPACT TO THE NET INCREASE THE GENERAL FUND IS OVER $600,000.

THAT'S IMPORTANT BECAUSE KEEP IN MIND THAT ONE OF THE ASSUMPTIONS WE MADE EARLIER IN THE YEAR WITH THE COMPENSATION COMMITTEE WAS AT LEAST $500,000 COMING FROM INCREASED PROPERTY TAX REVENUE AND SO THIS IS DIRECTLY CONTRIBUTED TO THAT ASSUMPTION THAT WE PRESENTED EARLIER IN THE YEAR AND CAN ALSO BE ATTRIBUTED TO OUR DESIRE TO ENSURE THAT WE HAVE REVENUE MOVING FORWARD TO HONOR THOSE COMMITMENTS SUCH AS PAYING FOR THE STEP PROGRAMS AND PUTTING US IN A POSITION TO HOPEFULLY BE ABLE TO TACKLE MORE AGGRESSIVELY SOME OF THE POSITIONS WITHIN OUR GENERAL POPULATION.

YOU'LL SEE THERE A DECREASE ON THE DEBT SERVICE FUND, BASICALLY THERE'S JUST TOO MUCH MONEY THAT WAS CASH FLOWING THAT WAS GOING -- CASH THAT WOULD BE FLOWING INTO THAT, RECALL THAT WE HAD PROPOSED ISSUING SOME DEBT IF FISCAL YEAR '25 FOR THAT BON AIR PROJECT THAT WE DIDN'T ISSUE AND SO WHEN WE HAD -- WHEN WE WERE AT THIS POINT LAST YEAR AND ANTICIPATING THE TIMING OF THAT DEBT, WE WERE ANTICIPATING OBVIOUSLY HAVING THAT PAYMENT IN THE CURRENT PHYSICAL CHALLENGE YEAR THAT WE'RE IN NOW, WHICH WE DON'T BECAUSE WE DIDN'T ISSUE IT SO WE NEED TO RELEASE SOME OF THAT CASH FLOW. WE CAN'T HAVE TOO MUCH EXCESS CASH FLOW GOING TO THE DEBT SERVICE ABOVE AND BEYOND OUR COMMITMENTS.

AND SO OVERALL, THE TAX REVENUE NET INCREASE IS OF A LITTLE OVER HALF A MILLION DOLLARS AND AS I ALLUDED TO WE'RE NOT RECOMMENDING A BOND REDEMPTION PROGRAM. NOW, IT'S IMPORTANT TO NOTE JUST TO KIND OF TRY AND CONNECT THIS SLIDE WITH THE PRESENTATION ON VALUES THAT THE NO NEW REVENUE TAX RATE OF 0. 4710 IS A SLIGHT INCREASE TO THE EXISTING TAX RATE.

AND THAT'S BASICALLY BECAUSE OUR VALUES CAME IN AT A NEGATIVE AND SO THE INTENT OF THE NO NEW REVENUE TAX RATE IS GENERATE THE SAME AMOUNT OF MONEY YOU DID THE PRIOR YEAR, WELL, OBVIOUSLY THE WAY THE FORMULA WOULD WORK IF THOSE VALUES WENT DOWN AND WENT TO THE NEGATIVE, WELL, THEN YOU'RE GOING TO HAVE TO INCREASE YOUR TAX RATE A LITTLE BIT TO BE ABLE TO GENERATE THAT SAME AMOUNT OF MONEY BUT, AGAIN, WE'RE PROPOSING THE VOTER APPROVAL TAX RATE WHICH IS THE MAX INCREASE THAT WE CAN PROCEED WITH FOR THE REASONS DESCRIBED IN MAKING SURE THAT WE HAVE THE MONEY THAT WE NEED FOR OUR PAY PROGRAM MOVING FORWARD. NOW, IF YOU'RE WONDERING WHAT DOES THAT IMPACT ON RESIDENTS? RECALL THAT WE SAW AN AGGREGATE DECREASE OF 4.3% IN VALUES FOR RESIDENTIAL SO THE WAY THAT WE ALWAYS SHOW YOU THIS PARTICULAR TABLE IS THAT WE TAKE THAT AGGREGATE IMPACT AND SHOW YOU WHAT THAT IMPACT WOULD BE. AND SO WHEN WE TAKE THAT AND WE APPLY THAT NEGATIVE 4. 3% TO VALUES, EVEN THOUGH WE'RE PROPOSING INCREASE IN TAX RATE YOU'LL SEE THERE'S ACTUALLY A REDUCTION IN WHAT FOLKS WOULD PAY. NOW, AS I SAY EVERY YEAR, OBVIOUSLY THAT IMPACT VARIES PERSON TO PERSON, PROPERTY TO PROPERTY AND IT'S VERY DIFFICULT OBVIOUSLY FOR US TO MAKE A RECOMMENDATION OR ASSUMPTION TAKING INTO ACCOUNT A MILLION DIFFERENT SCENARIOS, RIGHT, SO OUR GO- TO WAY TO DO IT, SIMPLY SHOW YOU WHAT THE IMPACT WOULD BE BASED OFF THE AGGREGATE IMPACT BASED OFF RESIDENTIAL AND THAT'S THAT NEGATIVE 4.3%.

IF YOU'RE WONDERING WHY ARE WE HAVING TO INCREASE THE TAX RATE? WE HAVEN'T HAD THIS CONVERSATION IN SEVERAL YEARS. WELL, YOU WOULD BE CORRECT.

WE -- OUR COMMUNITY, OUR CITY HAS NOT BEEN IN A POSITION TO HAVE TO LOOK AT INCREASING THE TAX RATE IN SIX OR SEVEN YEARS, AND SO EARLIER WHEN I MENTIONED REMEMBER WHAT HAPPENED IN 2018, REMEMBER WHAT HAPPENED IN 2019 WAS TO TRY AND MAKE THE POINT TO YOU THAT THE LAST TIME THAT THE CITY HAD TO CONSIDER INCREASING THE PROPERTY TAX RATE WAS IN 2018 AND 2019. IN 2018, I'M SORRY, WE SAW

[01:50:04]

AND SO THERE'S CLEARLY A CORRELATION BETWEEN THE TIMES THAT THE CITY HAS HAD TO CONSIDER TAX RATE INCREASE AND DECREASED VALUES AND DECREASED VALUES AND NEW IMPROVEMENTS AND WHAT WE'RE EXPERIENCING GOING INTO FISCAL YEAR '26 IS BOTH.

WE'RE SEEING BOTH A DECREASE IN NTAV OF NEGATIVE 1.2% AND SEEING THE SECOND LOWEST FIGURE IN NEW IMPROVEMENTS.

THAT WE'VE SEEN IN 15 YEARS. AND SO THE CITY'S BEEN IN THIS POSITION BEFORE BASICALLY, RIGHT? IT'S JUST THAT THE LAST TIME WE WERE WAS BACK IN TO 18/2019.

I SHOULD HAVE OVERLAID A LINE HERE OR SOMETHING THAT KIND OF REMINDED YOU OF THE HISTORIC INCREASES BETWEEN 2020 AND 2024 BECAUSE MAYBE IT GOES WITHOUT SAYING BUT WHEN THE NTAV IS DOUBLE DIGITS OR AS -- ON THE POSITIVE SIDE IT PUTS US IN A POSITION TO DECREASE THE TAX RATE BUT GENERATE MORE MONEY WHICH IS WHAT HAPPENED BETWEEN FISCAL YEARS 2021 AND 2025. ANY QUESTIONS ON THAT? MARK, YOU'RE THINKING.

>> I AM. HOW MUCH OF THE REVENUE THAT WE WILL -- THAT WILL INCREASE FROM NEW TAXES, NOT PREVIOUS TAXES? IN OTHER WORDS, IF WE'RE GOING -- I DON'T REMEMBER THE FIGURE, BUT WE'RE GOING TO REALIZE MORE TAX DOLLAR, HOW MUCH OF THAT IS GOING TO BE FROM NEW PROPERTY VALUES?

>> DO YOU HAVE THAT FIGURE? I DON'T HAVE THAT

FIGURE. >> YEAH, IT'S UP THERE. RIGHT THERE.

NEXT SLIDE THERE. YEAH.

>> I, THERE IT IS.

>> WELL, NEXT ONE, THE NEXT ONE. AT THE BOTTOM.

>> AT THE BOTTOM.

>> POINT IT OUT TO ME.

>> YEAH, WHICH ONE?

>> NEW IMPROVEMENTS? THERE'S A COLUMN FOR NEW IMPROVEMENTS AND EXISTING VALUES. AND SO YOU SEE THE NEW IMPROVEMENTS IS $80,000. YES, I REMEMBER BEING HERE BECAUSE 127,000 LISTED IN SMALL ON THE LEFT, THAT'S BOTH THE GENERAL FUND AND DEBT SERVICE COMBINED.

>> CAN YOU GO BACK TO THE ONE WHERE YOU SHOW HOW PEOPLE WILL PAY LESS IN TAXES?

>> I'M NOT SUGGESTING EVERYBODY WILL PAY LESS IN TAXES. I'M SUGGESTING THAT --

>> THIS IS FOR --

>> IF THERE IS A NEGATIVE 4.3%.

>> FOR RESIDENTIAL.

>> CORRECT.

>> COMMERCIAL, HOW WOULD IT BE FOR COMMERCIAL ROUGHLY? WOULD THEY BE -- DID THEY GO UP IN VALUE OR STAY THE SAME? THEY WENT UP IN VALUE.

>> COMMERCIAL WENT UP 2.8%.

>> YEAH, THAT EXPLAINS IT, OKAY.

>> AND THEN THAT DECREASES SPECIFICALLY IF I'M CORRECT, IT'S SPECIFIC TO IF THE VALUE OF THE HOME SAW A DECREASE, NOT BASED ON THIS, SO IF THE TAX ROLL, SO THE 2024 TAX ROLL APPRAISED VALUE AT 100,000, IF THE 2025, 97, THAT'S WHERE THEY WOULD SEE THE DECREASE WITH

THIS. >> CORRECT.

>> I GOT IT NOW.

>> OKAY. IT'S TAKING THE ACTUAL DECREASE SEEN AND APPLYING IT TO AS AN AVERAGE, IF YOU

WILL. >>

RIGHT. >> THE REASON I WAS SLIGHTLY CONFUSED WAS THIS SHOWS YOU'RE GOING TO GET A LOT LESS FROM RESIDENTIAL BUT WE'RE GOING TO MAKE IT UP IN NEW AND COMMERCIAL.

>> CORRECT.

>> OKAY. >> CORRECT.

AND SO EARLIER WHEN I WAS GOING OVER THE HISTORY OF VALUES, I DIDN'T DESCRIBE IT THIS WAY BUT BASICALLY WHAT WAS HAPPENING THERE FOR SEVERAL YEARS WAS THAT THE RESIDENTIAL OWNER WAS CARRYING THE BRUNT OF INCREASES IN TAX REVENUE, WHERE BUSINESSES AND COMMERCIAL WERE NOT AND SO WE'RE BASICALLY SEEING THE OPPOSITE IN THIS PARTICULAR YEAR MOVING FORWARD. NOW, AGAIN, I'M NOT SAYING THAT EVERYBODY WOULD SEE A DECREASE IN NET TAXES, RIGHT? EVERY SITUATION IS COMPLETELY DIFFERENT SO I WANT TO MAKE SURE WE'RE CLEAR ABOUT THAT.

AND SAME COULD EVEN APPLY TO BUSINESSES, IF THERE WAS A BUSINESS THAT ACTUALLY EXPERIENCED A NEGATIVE OR DECREASE IN THEIR VALUATION, YOU KNOW, THEY WOULD BE IN THE SAME BOAT.

OKAY. SO MOVING ON THEN TO SALES TAX.

AND SO ONE OF THE REASONS WHY WE'RE TYPICALLY SAFE FROM HAD HAVING TO MAKE ANY RASH CUTS IS BECAUSE WE BUDGET VERY CONSERVATIVELY AND THE SALES TAX SLIDE REALLY SHOWS THAT VERY CLEARLY AND SO, FOR EXAMPLE, YOU'LL SEE THAT IN FISCAL

[01:55:02]

THIS SHOWS YOU THE RELATIONSHIP BETWEEN ALL OF THE ABOVE. EXCUSE ME, SO THIS SHOWS YOU THE CORRELATION BETWEEN THE TAX RATE OR PROPERTY TAX BUDGET, THE SALES TAX, JUST TO KIND OF GIVE YOU A SENSE OF HOW EY CORRELATE. AS I'VE ALLUDED TO ALREADY THAT PROPERTY TAX RATE GOES DOWN WHEN OTHER ELEMENTS OF YOUR ECONOMY ARE SUCCEEDING, RIGHT? SO IF YOUR ECONOMY IS GROWING AND OUR SALES TAX REVENUE IS INCREASING SIGNIFICANTLY, WELL, IT PUTS A LESSER BURDEN ON THE TAX RATE. IF VALUES ARE INCREASING, WELL, IT PUTS A LESSER BURDEN ON THE TAX RATE SO THERE'S CLEARLY A CORRELATION BETWEEN THE ECONOMY GROWING THROUGH VALUES AND THROUGH SALES TAX MOVEMENT AND THE PROPERTY TAX RATE, WHICH, AGAIN, IF THAT'S WHY THE GROWING VICTORIA CAMPAIGN IS VERY IMPORTANT BECAUSE IF WE WANT TO GET BACK TO A POSITION WHERE WE CAN -- WHERE IT MAKES IT EASIER TO CONSIDER A TAX RATE REDUCTION IT'S GOING TO HAVE TO COME THROUGH THE BENEFIT OF INCREASED TAX BASE ON THE PROPERTY SIDE AND SALES TAX SIDE. ANY QUESTIONS ON THAT? OKAY. JUST SOME ADDITIONAL HIGHLIGHTS, I'M GOING TO GO THROUGH THIS NEXT SESSION FAIRLY QUICKLY BECAUSE SOME IS REPETITIVE. THE GENERAL FUND IS AABSORBING THE BULK OF THE PAY INCREASES, THAT'S BECAUSE THIS IS WHERE POLICE AND FIRE ARE FUNDED OUT OF SO YOU'LL SEE THAT FOR FISCAL YEAR '26 WE'RE PROPOSING A $67 MILLION BUDGET WHICH IS AN INCREASE OF ALMOST $6 MILLION COMPARED TO LAST YEAR AND YOU CAN SEE HOW A LOT OF THATTHAT LITERALLY BEING DRIVEN BY THE PAY PROGRAM. AS WELL AS OTHER PUBLIC SAFETY SERVICES. LIKE THE INVESTMENT IN FLEET.

YES?

>> PUBLIC WORKS IS LESS THAN THE PREVIOUS YEAR?

>> YES, AND SO SOME OF THAT, I'LL WALK YOU THROUGH THAT SHORTLY IN A SLIDE. SO THIS SLIDE KIND OF TAKES A DEEPER DIVER INTO WHY THE EXPENSE BUDGET OR WHERE THAT ALMOST $6 MILLION IS COMING FROM AND SO I'VE ALREADY MENTIONED THAT IT'S DRIVEN THROUGH PERSONNEL AS WELL AS SOME VEHICLE PURCHASES FOR PUBLIC SAFETY, YOU'LL SEE THAT THERE WAS ACTUALLY A REDUCTION IN SOME CAPITAL EXPENDITURES RELATED TO SOME ONGOING ONE-TIME EXPENSES.

I THOUGHT I HAD A DIFFERENT SLIDE HERE. WESLEY, I DON'T REMEMBER OFF THE TOP OF MY HEAD MORE SPECIFICALLY THAT NEGATIVE $400,000 IN PUBLIC WORK SERVICES.

>> ONE- TIME EXPENSE --

>> OKAY, SO IT IS REFLECTIVE --

OOPS. >> IT'S ALL IN --

>> SORRY, IN THAT -- GOT IT, OKAY.

THANK YOU. ON THE REVENUE SIDE, WE'RE SHOWING AN INCREASE OF 3 MILLION.

OF COURSE, I ALREADY SHARED WITH YOU THAT ADDITIONAL REVENUE THAT WE WOULD GENERATE THROUGH SALES TAX, PROPERTY TAX, BUT WE'RE ALSO SHOWING THAT INCREASE IN AMBULANCE BILLING REVENUE WHICH WAS ALSO AN ASSUMPTION THAT WE SHARED IN APRIL AS PART OF THE RECOMMENDATION IN THE PAY PROGRAM. WHAT WE SHOW THERE AS OTHER IS BEING PRIMARILY DRIVEN BY THE FACT THAT OUR OR THE COMMITMENT OF THE COUNTY FOR FIRE AND EEMS SERVICES IS GOING UP BY OVER $600,000 SO WE'RE INK CREASING THE BUDGET FOR FIRE AND, OF COURSE, WHAT THEY PAY US IS A PERCENTAGE OF THAT AND SO THAT'S WHY THAT CONTRIBUTION IS COMING IN GREATER.

THIS IS THE USUAL SLIDE THAT WE SHOW THAT KIND OF JUST BASICALLY ILLUSTRATES THAT WE BUILD IN A CUSHION SO YOU SEE THAT WE ARE BASICALLY EXPECTING TO END FISCAL YEAR '26 WITH ALMOST $20 MILLION IN RESERVES,

[02:00:03]

ON THE UTILITY FUND SIDE WE ARE BASICALLY RECOMMENDING FOR FISCAL YEAR '26, 42 MILLION BZ WHICH IS A DECREASE OF $2.5 MILLION AND A LOT OF THAT HAS TO DO WITH JUST A DECREASE IN PROFESSIONAL SERVICES, MAINTENANCE, LESS CIP MONEY GOING TO THE CIP FUND ALL SHOWN HERE IN THE RED BUT YOU'LL ALSO SEE HOW THERE'S AN INCREASE RELATED TO PERSONNEL BECAUSE WE'RE OBVIOUSLY ALSO DOING AN INVESTMENT IN PERSONNEL FUNDED OUT OF THE UTILITY FUND, AS WELL. I MENTIONED THE DECREASE IN TRANSFERS OUT DUE TO LESS FEWER UTILITY CENTRIC CIP PROJECTS IN 2026 AND, OF COURSE, WE MENTIONED THE SCADA PROJECT. AND THE REGIONAL WASTEWATER TREATMENT PROJECT, YOU MAY RECALL SHORTLY AFTER THE BOIL WATER NOTICE WAS MAKING A RECOMMENDATION TO SHIFT THINGS AROUND IF WE WANTED TO BE MORE AGGRESSIVE WITH SCADA AND YOU MAY RECALL ME RECAPPING THAT WE ACTUALLY THREW THE MONEY THAT WE ANTICIPATED TO RECEIVE FROM THE CDBG MIT WAS NOT ENOUGH TO PAY FOR THE PROJECT AT THE WASTEWATER TREATMENT PLANT AND WOULD NEED MONEY FROM THE SALES TAX SIDE FOR THAT. THAT'S WHAT THAT IS SO WE DO END UP GETTING TO THE POINT WHERE WE DECIDE TO NOT DO THAT PROJECT IN ORDER TO SPEED UP THE SCADA PROJECT, THAT ALMOST $1 MILLION THAT YOU SEE THERE, WE WOULD RECOMMEND WE APPLY TOWARDS THE SCADA. AND THIS, AGAIN, JUST SHOWS YOU WHERE WE'RE ESTIMATED TO END FISCAL YEAR '26 AT ALMOST $10 MILLION WHICH IS A LITTLE OVER $2 MILLION ABOVE OUR MINIMUM RESERVE REQUIREMENT.

THE ENVIRONMENTAL SERVICES BUDGET IS PRETTY STRAIGHTFORWARD. THE MAJOR INCREASES HERE WE'RE PROPOSING A $9.2 MILLION BUDGET. THAT'S PRIMARILY BEING DRIVEN BY THE FACT THAT WE HAVE THOSE GARBAGE, NEW GARBAGE TRUCKS AS WELL AS THIS FUND IS CONTRIBUTING TOWARDS BUYING SOME OF THE AMBULANCES IN SPECIFIC AND SO YOU MAY RECALL THE CHIEF AND DARRYL KIND OF JOKING ABOUT THAT DURING THE PRELIMINARY BUDGET PRESENTATIONS.

I FORGOT TO MENTION THAT ONE OF THOSE ASSUMPTIONS WE MADE WITH THE SUBCOMMITTEE EARLIER IN THE YEAR ON HOW WE WOULD PAY FOR THE PROGRAM ALSO HAD A TRANSFER OUT OF THIS FUND. THAT'S WHAT YOU SEE AT THE BOTTOM WHERE IT SAYS A NON- CIP TRANSFER FROM POST CLOSURE FOR PAY PROGRAM. THAT WAS ANOTHER ONE OF THOSE ASSUMPTIONS WE MADE EARLIER IN THE YEAR THAT WE'RE FOLLOWING THROUGH WITH IN THIS PROPOSED BUDGET. NO CHANGE TO FEES ASSOCIATED WITH ENVIRONMENTAL SERVICES. AND, AGAIN, HEALTHY FUND BALANCE AT THE END OF FISCAL YEAR '26 FOR THEM. REALLY QUICKLY ON THE HEALTH PLAN FUND WE ARE PROPOSING AN INCREASE OF HALF A MILLION DOLLARS ON THE MEDICAL CLAIM SIDE.

WE'VE OBVIOUSLY BEEN VERY INTENTIONAL AND TRYING TO PROVIDE ENHANCEMENTS TO THE BENEFITS AS WELL AND NOT PROPOSING CHANGING ANYTHING FOR FISCAL YEAR '26 BECAUSE WE WANT TO SEE WHAT HAPPENS. THERE'S QUITE A BIT OF MOVEMENT WITH CLAIMS AND FEEL COMFORTABLE JUST LETTING THINGS BE AND STAY AS THEY ARE. YOU MAY RECALL, THOUGH, THAT LAST YEAR WE ACTUALLY INTRODUCED THAT NEW EPO PLAN AND SO WE WANT TO TRY TO MAYBE BE MORE AGGRESSIVE WITH EDUCATING EMPLOYEES TO HAVE MORE MOVEMENT TOWARD THAT PLAN NEXT YEAR WHICH COULD IN THEORY STABILIZE A LITTLE OF WHAT WE'RE SEEING ON THE CLAIM SIDE.

I'M NOT GOING TO REPEAT ALL OF THAT.

THIS IS SIMPLY JUST TO ILLUSTRATE THAT WE ARE BEGINNING TO SEE A REDUCTION IN OUR RESERVES FOR THE HEALTH FUND AND SO ONE OF THE THINGS THAT WE WANT TO BE MINDFUL OF MOVING FORWARD IS THAT THANKS TO US HAVING A HEALTHY RESERVE, ANY CHANGES THAT WE NEED TO CONSIDER TO THE BENEFITS WE DON'T HAVE TO BE RASH ABOUT.

SOME OF YOU WHO WERE ON COUNCIL OR ATTENDED COUNCIL MEETINGS AT THE TIME WHEN COUNCIL HAD TO BE SOMEWHAT RASH WITH THE HIGH DEDUCTIBLE PLANS AND THINGS OF THAT SORT, WE'RE NOT IN THAT POSITION ANYMORE.

YOU KNOW, WE ARE NOT IN THAT HOLE OR IN THAT DOWNWARD DECLINE TO THE EXTENT THE CITY WAS OVER TEN YEARS AGO AND SO THAT PUTS US IN A GOOD POSITION TO BE PROACTIVE WITH HOW WE WANT TO HANDLE CHANGES IN THE MARKET FROM THE HEALTH INSURANCE STANDPOINT.

REALLY QUICKLY ON THE HOT TAX FUND, THIS IS A VERY -- IT'S A VERY SIMILAR BUDGET TO LAST YEAR, THE BIGGEST CHANGES RELATED TO IT NOW WE'RE ACCOUNTING FOR HOUSE FEST AND LAST YEAR BUDGET WE HADN'T ADEQUATELY DID THAT SO

[02:05:01]

TRANSFER FOR THE CIP FOR THE COMMUNITY CENTER WHICH I'LL EXPAND ON IN A BIT. IN JUST SHOWS THE 15I78 THING.

WE ARE FOR THE FIRST TIME IN A FEW YEARS ACTUALLY PROPOSING AN INCREASE IN HOTEL TAX REVENUE AND PROPOSING A VERY, VERY SMALL INCREASE, BUT WE'RE SEEING SOME MOVEMENT THERE AND SO WE'RE BEING SOMEWHAT FORCED TO BE A LITTLE AGGRESSIVE WITH THIS FUND BECAUSE THIS FUND, AS YOU CAN SEE BY THIS CHART, A LOT DEPEND ON THIS FUND, OF COURSE, FUNDING OUR CIP PROJECTS WITH THE COMMUNITY CENTER AND PROGRAM THAT JOEL AND THE TOURISM ADVISORY BOARD GO THROUGH TO AWARD SOME FUNDS FOR AGENCIES. WE USE SOME UPON FOR SPORTS FIELDS. THERE'S QUITE A BIT OF THINGS THAT COME OUT OF THE FUND AND SECOND FISCAL YEAR IN A ROW WHERE I GIVE YOU A HEADS- UP SOMETHING IS GOING TO CHANGE BECAUSE IT'S NOT SUSTAINABLE LONG TERM AND ALL THESE DIFFERENT THINGS ARE DEPENDENT ON THE FUND IN THE ABSENCE OF THIS FUND NOT GROWING QUICKER.

REALLY QUICK ON THE COMMUNITY CENTER PROJECT $35 MILLION PROJECTS BUT WHAT'S IN THE BUDGET FOR FISCAL YEAR '26 IS ONLY ROUGHLY 29 MILLION AND SO BASICALLY THAT'S MADE UP OF, OOPS, SORRY, THESE THREE BUCKETS AND SO, OF COURSE, WE HAD THE ELECTION IN MAY, THAT ELECTION IN MAY IS CAPTURED BY THAT BLUE FIRST BUCKET THERE AND SO OUT OF THAT 2% VENUE TAX FOR HOTELS AND 5% SHORT- TERM RENTALS WE'RE ABLE TO LEVERAGE THAT BASICALLY ISSUE ABOUT $9 MILLION IN TAX MONTHS AND YOU SEE WE PLAN ON COMMITTING $400,000 PER YEAR FROM EXISTING HOTEL TAX REVENUES TO BE ABLE TO LEVERAGE AN ADDITIONAL $6 MILLION IN BONDS.

THAT WAS SOMETHING THAT WE WERE TRYING TO DO IN RESPONSE TO THE FEEDBACK WE RECEIVED TO NOT TO LESSEN THE CO CONTRIBUTION BECAUSE YOU MAY RECALL THAT WHEN WE ORIGINALLY MADE THE RECOMMENDATION TO FUND COMMUNITY CENTER WE WERE RECOMMENDING $15 MILLION IN COS BEING PAID OUT OF OUR, YOU KNOW, PROPERTY TAXES TO GO TOWARDS THE PROJECT AND SO WE'VE BEEN ABLE TO DECREASE THAT TO BASICALLY ROUGHLY $10 MILLION.

THIS IS JUST A DIFFERENT TABLE THAT KIND OF ILLUSTRATES TO A GREATER LEVEL OF SPECIFICITY HOW WE INTEND ON FUNDING THAT $35 MILLION BUT, AGAIN, WHAT'S IN FISCAL YEAR '26 IS ONLY THAT $29 MILLION. AND THIS WHOLE TOPIC PROBABLY WARRANTS A COMPLETELY DIFFERENT PRESENTATION BECAUSE I KNOW IT'S A LOT.

BUT IT'S IN THE BUDGET SO I WANTED TO MAKE SURE IT WAS INCLUDED IN THE PRESENTATION.

AND THESE ARE JUST SOME ELEMENTS WE WANT TO CONTINUE TO BE MINDFUL OF AS WE HAVE THE CONVERSATION ON THE BUDGET.

THE TAX RATE AND JUST EVERYTHING ELSE THAT WE NEED TO DO. WE KNOW THAT WE'VE TABLED UP TO THIS POINT THE CONVERSATION ON THE STORMWATER UTILITY BUT THAT'S SOMETHING WE WANT TO PICK BACK UP. YOU'VE HEARD US ALLUDE TO THE FACT THAT WE NEED TO HAVE A RATE STUDY, THIS DOESN'T JUST APPLY TO WATER AND SEWER.

WE KNOW THAT GARBAGE RATES NEED TO BE ASSESSED AS WELL AND KNOW WE HAVE THE ELECTION THAT WAS JUST APPROVED EARLIER TODAY THAT COULD IMPACT WHAT HAPPENS IN THE BUDGET MOVING FORWARD RELATED TO THE FIRE CIVIL SERVICE COLLECTIVE BARGAINING. I MENTIONED SOME OF THE ONGOING GOALS OF THE COMPENSATION COMMITTEE. AND THERE'S JUST SOME OTHER PROJECTS THAT ARE IN THE WORKS THAT MIGHT IMPACT THE BUDGETS MOVING FORWARD SUCH AS THE CITY HALL COMPLEX RENOVATION PROJECT AS WELL AS WATER VISIBILITY STUDY THAT'S ONGOING SO WITH THAT, I'LL KIND OF JUST END IT THERE WITH THE TIME LINE, OF COURSE, IT WAS MENTIONED EARLIER THAT WE HAD A SPECIAL MEETING ON SEPTEMBER 9TH. BUT BEFORE THEN WE HAVE AN OPPORTUNITY TO DISCUSS THE BUDGET AND TAX RATE AND A COUPLE OF OTHER OPPORTUNITIES AND SO ON AUGUST 19TH WE'LL POSE FOR A BUDGET WORK SESSION TO ADDRESS ANYTHING THAT YOU MIGHT WANT TO ADDRESS, TALK ABOUT, YOU KNOW, ET CETERA, AS IT RELATES TO THE BUDGET AND THEN AT OUR REGULAR MEETING ON SEPTEMBER 2ND WE'LL HAVE THE OFFICIAL PUBLIC HEARING, THE FIRST OFFICIAL VOTE ON THE BUDGET ORDINANCE, WE'LL HAVE A TAX RATE PUBLIC HEARING AND THE FIRST VOTE ON THE TAX RATE ORDINANCE THEN AS WELL.

AND SO ON AND SO FORTH AND SO WITH THAT, THAT CONCLUDES MY PRESENTATION. I'M SORRY IT TOOK ME A WHILE.

IT'S OBVIOUSLY A LABOR OF LOVE, OF STAFF PUTTING IT TOGETHER. SO VERY GRATEFUL FOR THEM AND THANKS FOR LETTING ME PRESENT THE BUDGET AND WELCOME ANY QUESTIONS YOU HAVE.

>> ANY QUESTIONS ON THE BUDGET PRESENTATION? IS THAT A NO?

>> NO. >> OKAY.

ALL RIGHT.

>> I HAVE A QUESTION LATER.

[3. Propose Tax Rate, schedule public hearings, and schedule a vote to ado...]

>> EXCUSE ME?

>> I HAVE A QUESTION LATER I CAN

ASK. >> OKAY.

>> IF THAT CONCLUDES THAT PRESENTATION, THEN WE WILL

[02:10:02]

TAX RATE. >> YES, SIR.

ITEM E3 IS A RESOLUTION PROPOSING THE TAX RATE PUBLIC HEARINGS AND SCHEDULING A VOTE TO ADOPT THE TAX RATE FOR FISCAL YEAR 2025-2026.

>> SORRY, I WANT TO JUST GO BACK TO SAME PRESENTATION BUT I WANT TO PULL UP THE TAX RATE SLIDE

JUST FOR REFERENCE. >> SURE.

>> IT'S NOT MOVING ON ME. THERE WE GO.

I SHOULD JUST GO THROUGH THE WHOLE THING AGAIN.

JUST KIDDING. >> LET'S DON'T.

>> HEY, HEY, HEY, HEY.

>> IT WASN'T ME.

>> OKAY, SO AS I MENTIONED DURING THE PRESENTATION, THE PROPOSED TAX RATE THAT'S INCLUDED IN YOUR PACKET IS FOR 0. 428 OR THE MAXIMUM TAX RATE IT COULD BE AND AS I ALLUDED DURING THE PRESENTATION THAT WOULD GENERATE THAT -- IT WOULD NET OVER HALF A MILLION DOLLARS ONCE YOU COMBINING THE IMPACT TO THE GENERAL FUND AND DEBT SERVICE FUND.

AND HAPPY TO ANSWER ANY QUESTIONS THAT Y'ALL MIGHT HAVE ON THE PROPOSED TAX RATE.

>> QUESTIONS ON THE TAX RATE FOR MR. GARZA?

>> WHEN WAS THE LAST TIME WE HAD A VOTER APPROVAL TAX RATE INCREASE?

>> THAT'S A GOOD QUESTION. I WOULD PROBABLY SAY NEVER. I'M JUST KIDDING. WELL, YEAH, I'M -- I'M NOT SURE -- WELL, THIS KIND -- SO, I DIDN'T GO THROUGH THIS BUT THE GREEN LINE ON THIS IS ACTUALLY REPRESENTATIVE OF THE ROLLBACK RATE SO THIS GREEN LINE WOULD ACTUALLY BE THE EQUIVALENT OF THE EITHER 8% ROLLBACK RATE WHICH IT WAS BEFORE SB2 OR 3 1/2 THAT IT IS NOW AND SO YOU CAN SEE THAT OVER I GUESS THE HISTORY WE'VE ADOPTED A TAX RATE THAT ISN'T THE VOTER TAX RATE OR THE EFFECTIVE TAX RATE, WHICH IS WHAT IT WAS CALLED BEFORE. AND BUT YOU'LL START TO NOTICE THAT ONCE YOU GET TO LIKE 2020 THROUGH 2025, WE START TO GET REALLY, REALLY CLOSE TO THAT LINE. BECAUSE WHEN YOU SEE THE INCREASE IN PROPERTY VALUES, IT AFFORDS YOU THE OPPORTUNITY TO MAXIMIZE YOUR REVENUE AND REDUCE THE TAX RATE AT THE SAME TIME. I KNOW THAT THIS GRAPH MAKESMAKES LOOK LIKE WE DID THAT IN 2023 BUT I'M NOT SURE. I THINK WE WERE CLOSE, BUT I DON'T THINK THAT THAT WAS THE CASE.

>> AS A MATTER OF FACT, THE TAX WENT DOWN BECAUSE THAT'S WHEN WE HAD --

>> GOT IT.

>> MAYBE I'VE MISUNDERSTOOD THE QUESTION.

BUT WOULDN'T WE HAVE HAD TO HAVE AN ELECTION IF WE HAD HAD A RATE THAT WAS HIGHER THAN THE VOTER APPROVED --

>> IF IT WAS HIGHER, YES.

>> AND SINCE WE HAVEN'T HAD AN ELECTION DOES THAT KIND OF ANSWER THE QUESTION TOO.

>> NO, I THINK HER QUESTION IS BASICALLY WHEN WAS THE LAST TIME WE MAXIMIZED --

>> OH.

>> -- OUR TAX RATE TO THE POINT TO WHERE, LIKE, IT'S RIGHT BELOW TRIGGERING THE ELECTION

BASICALLY. >> I HAVE A HYPOTHETICAL TO KIND OF ADD TO THAT JUST OUT OF CURIOSITY.

AND GILBERT, WESLEY AND YOU, MR. GARZA, HYPOTHETICALLY HAD WE DONE THAT SOMEWHERE ALONG THE LINE, WHAT POSITION WOULD THAT PUT US IN NOW COMPARATIVELY?

>> LET HIM ANSWER.

>> YEAH, SO -- I KNOW THAT I'VE MENTIONED TO YOU, COUNCILWOMAN BUTLER AND SOME WHO FIRST ARRIVED, YOU MIGHT REMEMBER THIS, BUT, YOU KNOW, PRIOR TO SB2 GOING INTO EFFECT, THE ROLLBACK TAX RATE WAS 8%.

AND EVEN THOUGH THAT WAS WHAT THE STATE LAW WAS, LOCALLY VICTORIA HAD A POLICY TO NOT SURPASS THAT -- TO NOT SURPASS 5% AND SO BACK IN 2020 WE RAN AN ANALYSIS ON, YOU KNOW, HOW MUCH MORE MONEY WOULD WE HAVE IN THE GENERAL FUND HAD OVER THE LAST TEN YEARS COUNCIL WOULD HAVE ADOPTED THAT 5% BASICALLY AND SECURED THAT ADDITIONAL 5% IN REVENUE EVERY YEAR.

AND BASICALLY IT WAS $5 MILLION AND SO THAT EXERCISE BACK IN 2020 YIELDED THAT WE WOULD -- THE CITY WOULD HAVE HAD AN

[02:15:03]

BUT I WILL SAY THAT THERE ARE LONG- TERM IMPLICATIONS TO ANY DECISION THAT IS MADE ON THE TAX RATE ABOVE AND BEYOND WHAT MIGHT APPEAR AT FACE VALUE.

>> THANK YOU.

>> ANY OTHER QUESTIONS? OKAY.

THANK YOU, MR. GARZA. SO, GIVING THAT THEN I THINK PROBABLY IN ORDER TO HAVE A DISCUSSION ON THIS THEN WE WOULD NEED MISS BOON E A SECOND.

>> YES.

>> IS THERE ANY MOTIONS ON THE TAX RATE FOR THE UPCOMING YEAR?

>> SO THAT FANCY LANGUAGE THAT WE --

>> YEAH, SUCH LANGUAGE --

>> THERE'S SOME LANGUAGE THAT --

>> NO, MA'AM. NOT FOR THIS GASH --

>> THE PROPOSED RATE.

>> I MOVE WE DISCUSS THE TAX RATE AS PROPOSED.

>> SO YOU MOVE TO ADOPT THE TAX RATE AS

OPPOSED. >> YES, I MOVE TO ADOPT IT.

>> OR ADOPT THAT AS A PROPOSED TAX RATE,

OKAY. >> I'LL SECOND.

>> ALL RIGHT, SO I'VE GOT A MOTION AND A SECOND SO THAT WILL OPEN UP THEN DISCUSSION ABOUT THAT PROPOSED RATE AND SO OPEN TO COMMENTS, ANYONE MAY HAVE ON THAT RATE?

>> SO THIS DOES NOT SET THIS TO BE CLEAR, THIS SAYS THAT WE'RE -- WE HAVE THE OPTION TO UTILIZE THIS TAX RATE, BUT WE COULD DETERMINE ANOTHER TAX RATE ALONG THE WAY, IS THAT CORRECT?

>> SO MY UNDERSTANDING AND SOMEBODY CORRECT ME IF I GO ASTRAY HERE, WHAT WE ARE DOING HERE IS WE ARE SETTING A PROPOSED RATE, THAT IS NOT A FINAL RATE, THE FINAL RATE ON THE TAX RATE WILL BE MADE IN SEPTEMBER AND WHEN YOU SET A PROPOSED RATE, THAT RATE CAN GO DOWN BETWEEN THE PROPOSED RATE AND YOUR FINAL RATE BUT IT CANNOT GO UP.

>> OKAY.

>> THAT'S CORRECT.

>> DID I STATE THAT CORRECTLY.

>> YES, SIR.

>> ANY OTHER COMMENTS ON THE RATE? OKAY. I HAVE A COUPLE.

I JUST WANTED TO GIVE EVERYBODY AN OPPORTUNITY TO WEIGH ON THAT. YOU KNOW, TAX RATES ARE -- AND SETTING THAT IS KIND OF ONE OF THOSE ISSUES AND ONE OF THOSE SITUATIONS WHERE IT'S A NONBINARY, OKAY, WE'RE NOT TALKING ABOUT BLACK AND WHITE.

WE'RE NOT TALKING ABOUT ON OR OFF AND SO IN ANY TYPE OF ANALYSIS LIKE THAT, ANY KIND OF SITUATIONS LIKE THAT, THERE CAN BE MORE THAN ONE POSITION THAT IS RATIONAL, REASONABLE, SUPPORTED BY LOGIC AND COULD BE CONSIDERED QUOTE, UNQUOTE RIGHT, OKAY. AND SO FROM THAT STANDPOINT I THINK WE ALL GET -- WHAT WE THINK IS RIGHT OR NOT OR MORE RIGHT THAN SOME OTHER RIGHT IS BASICALLY BASED ON PRIORITY AND IS BASED ON PERSPECTIVE IS WHERE IT COMES FROM. SO, I FULLY UNDERSTAND THE RECOMMENDATION FOR THE MAXIMUM LEVEL TAX RATE GIVEN THE ENVIRONMENT THAT WE'RE IN, FINANCIAL ENVIRONMENT, I KNOW WE'RE LOOKING AT SOME POTENTIAL CAPS COMING FROM THE LEGISLATURE THAT ARE LOOKING LIKE THEY PROBABLY WILL PASS IN THIS SPECIAL SESSION.

YOU KNOW, I UNDERSTAND THE MATH BEHIND IT, THE OPPORTUNITY ARGUMENTS AS MR. GARZA HAS PRESENTED ON, YOU KNOW, HOW THAT CAN MULTIPLY ITSELF AND I UNDERSTAND ALL THE SUPPORTIVE REASONING BEHIND IT. I UNDERSTAND WHY MR. GARZA HAS PROPOSED THIS RATE AND IF I WAS IN HIS SHOES I WOULD BE PROPOSING THIS RATE, AS WELL.

100%. AND I THINK FROM HIS STANDPOINT AND HIS JOB, THAT'S THE RATE THAT HE NEEDED TO PROPOSE. FROM A POSITION OF GOVERNANCE,

[02:20:01]

AND MY CONCERNS ABOUT THE MAX RATE, I WILL ADMIT UP FRONT ARE PHILOSOPHICAL, NOT NECESSARILY BLACK AND WHITE, XS AND OS, PLUSES AND MINUSES. I WANT TO BE VERY CLEAR UP FRONT MY COMMENTS ARE IN NO WAY REFLECTIVE UPON MY SUPPORT FOR THE RAISES THAT WE'RE TALKING ABOUT GIVING TO OUR PUBLIC SAFETY FOLKS AND OUR REALLY OUR GENERAL POPULATION AS MR. GARZA REFERRED TO IT.

>> I SHOULD COME UP WITH A BETTER

TERM. >> THAT SOUNDS VERY PRISONY.

THOSE. WE'VE COMMITTED TO THOSE, AND THOSE HAVE TO BE IN THIS BUDGET.

THERE'S NO DOUBT ABOUT THAT. THOSE ARE GOING TO HAPPEN AND THEY HAVE TO BE IN THIS BUDGET.

MY CONCERN AND AT LEAST I WANT TO VOICE THIS TO COUNCIL IS AROUND THE CONCEPT OF ASSESSING A MAX TAX RATE IN THE FACE OF A SHRINKING TAX BASE.

THOSE TWO THINGS PHILOSOPHICALLY CREATE CONCERNS FOR ME.

WE HAVE FLAT ECONOMIC CONDITIONS AS MR. GARZA HAS REFERRED TO OUR FLAT GROWTH, I SHOULD SAY, YOU KNOW, WE'VE RECOGNIZED THAT.

WE'VE SEEN THAT COMING. THE GROW VICTORIA INITIATIVE IS OUT THERE AND HAVE TAKEN STEPS TO ADDRESS THAT GROWTH, AND WE'LL CONTINUE TO DO SO.

WE'VE SEEN SOME POSITIVE STEPS IN ADDRESSING THAT DOWNTOWN AND I THINK WE'LL CONTINUE TO SEE THE FRUITS OF THOSE LABORS GOING FORWARD, BUT WHERE WE SIT RIGHT NOW, WE DON'T HAVE A POSITIVE GROWTH, I MEAN, THAT'S JUST PLAIN AND SIMPLE.

THERE'S NO TWO WAYS ABOUT IT. YOU KNOW, SO THE QUESTION BECOMES, ALL RIGHT, IS IT FISCALLY RESPONSIBLE TO THE PAX PAIR TO SAY WE'RE GOING TO GO WITH THE MAX TAX RATE EVEN THOUGH THE TAX BASE IS NOT GROWING? MY PHILOSOPHICAL THINKING ON THIS AS I SAID AND, AGAIN, THIS IS NOT PEN TO PAPER BUT THIS IS JUST PHILOSOPHICALLY IS THAT GOVERNANCE SHOULD MATCH THE COMMUNITY AND GOVERNANCE SHOULD BE TIED TO THE COMMUNITY AND IF THE COMMUNITY IS NOT GROWING, THEN I THINK THAT NEEDS TO COME INTO OUR THINKING ON WHEN WE SET THESE RATES. WE'VE GOT TAXPAYERS OBVIOUSLY THAT HAVE HIGHER INFLATION THAT -- THE COST OF THAT THEY'RE ABSORBING AND ALL SEEN IT IF YOU'VE PAID AN INSURANCE BILL LATELY.

IF YOU PAY UTILITY BILLS, YOU KNOW, THE COST OF EVERYTHING IS JUST MORE AND SO I THINK WE NEED TO KEEP THAT IN MIND. YOU KNOW, WE'VE REALLY JUST KIND OF LOOKED AT, I GUESS IN THIS EXERCISE, THE MAX RATE WHICH WE NOW UNDERSTAND THAT'S WHAT'S BEING THROWN OUT THERE, THE NO NEW REVENUE RATE. FROM MY THINKING IF THAT'S A BINARY CHOICE BETWEEN I'M DOING ONE OF THOSE OR THE OTHER THEN I WOULD LEAN TOWARD THE LATTER, QUITE FRANKLY.

YOU KNOW, IF COMING OUT OF THIS MEETING AND I WOULD UNDERSTAND IF IT WAS BUT IF COMING OUT OF THIS MEETING THERE IS IS APPROVAL FOR THE MAX RATE THEN I WOULD HOPE THAT THAT WOULDN'T BE SET IN STONE, THAT WE COULD CONTINUE DISCUSSIONS ABOUT, OKAY, WHAT DOES THAT LOOK LIKE? IS THERE A WAY THAT WE CAN GET TO STILL FULFILL OUR PROMISES THAT WE MADE TO PUBLIC SAFETY TO OUR FIRST RESPONDERS BUT BE SENSITIVE TO, YOU KNOW, OUR TAXPAYERS AND CONSIDER SOMETHING OTHER THAN THE MAX RATE.

NOW, HAVING SAID THAT, AGAIN, I FULLY UNDERSTAND THE CONCEPT BEHIND IT AND UNDERSTAND THE REASON BEHIND IT BUT I WANT EVERYBODY TO AT LEAST -- I WANTED TO VOCALIZE THAT SO WE AT LEAST HAVE THAT ON THE TABLE AND DISCUSSION AND SO I'M HAPPY TO HEAR ANY OTHER COMMENTS OR CONCERNS, ISSUES, YOU KNOW, AGAIN, I FULLY UNDERSTAND THE MAX RATE BASED ON THE ECONOMICS, BASED ON THE MATH, BASED ON ALL THE THINGS THAT GO INTO THAT, BUT I DON'T THINK IT SHOULD BE LOST THAT THERE ARE OTHER FACTORS BEYOND JUST THE NUMBERS ON THE PAGE THAT NEED TO BE -- NEED TO COME INTO PLAY HERE, SO --

>> I THINK I SHARE YOUR OPINION AND I WANT TO ADD TO THAT THAT NOT

ONLY -- >> CAN YOU SPEAK INTO THE MICROPHONE.

>> YEAH, I SHARE THAT OPINION BUT WANT TO ADD TO THAT NOT ONLY DO WE NEED TO LOOK AT IT FROM A RESIDENTIAL PERSPECTIVE BUT FROM A BUSINESS PERSPECTIVE AS WELL FROM THE COMMERCIAL INCREASE BECAUSE WE DO SEE THAT'S THERE WILL BE AN INCREASE, THEY WILL SEE THAT, THAT OVERALL THERE

[02:25:02]

I JUST WANT THAT ASSURANCE THAT THAT IS SOMETHING WE CAN WORK ON AND THEN I GUESS MY NEXT QUESTION TO THAT WHEN WOULD WE WORK ON THAT?

>> THAT WOULD BE SOMETHING DONE OVER THE COURSE OF THE NEXT 30

DAYS. >> OKAY.

>> FURTHER DISCUSSION TO DETERMINE, OKAY, IS THERE SOMETHING ELSE AND THERE MAY NOT BE.

I MEAN, THAT'S JUST THE REALITY OF

THAT. >> I WOULD LIKE TO AT LEAST MAKE A COMMENT ABOUT YOUR COMMENT ABOUT THE COMMERCIAL VALUES. QUITE HONESTLY IF YOU LOOK AT COMMERCIAL VALUES IN THE PAST, I SEE THE COMMERCIAL VALUES GOING UP AS AN ADJUSTMENT TO WHAT'S BEEN A LAG IN THOSE COMMERCIAL VALUES IN THE PAST.

NOW, I KNOW BUSINESS OWNERS AND COMMERCIAL PROPERTY OWNERS MAY NOT AGREE WITH ME, BUT, YOU KNOW, THAT'S JUST THE FACTS AND REALITY IS THAT I THINK WE DID SEE A LAG AS MR. GARZA REFERRED TO, WE SAW RESIDENTIAL AND COMMERCIAL GOING IN A DIFFERENT DIRECTION FOR A COUPLE -- SEVERAL YEARS IN THERE WHICH MADE NO SENSE AND I THINK -- I THINK WE'RE FINALLY SEEING COMMERCIAL VALUES CATCH UP TO PROBABLY WHAT THEY SHOULD HAVE BEEN DOING PREVIOUSLY.

AT LEAST IN MY MIND. SO --

>> DURING MR. GARZA'S PRESENTATION, HE DID MAKE A COMMENT -- I'M GOING TO EDITORIALIZE THIS PART -- THAT THE NUMBERS THAT HE WORKED FROM FROM A POINT IN TIME, THE COMMENT THAT HE MADE WAS THAT THERE WAS GROWTH, THAT GROWING VICTORIA WAS HAVING AN IMPACT AND THAT SOME OF THAT MAY BE REFLECTED AND SO THAT'S JUST, YOU KNOW, I RECOGNIZE AND APPRECIATE YOUR COMMENTS AND YOUR THOUGHTS, BUT THEY'RE ALL BASED ON NUMBERS AT A PERIOD IN TIME THAT HOPEFULLY ARE GOING TO CHANGE AND CONTINUE TO GROW.

>> OKAY.

>> AND JUST REALLY QUICK, WE CAN DISCUSS IT HOWEVER YOU WISH, RIGHT? I MEAN, IF THERE'S A SPECIFIC I GUESS -- LET ME BACKTRACK. IT WOULD BE HELPFUL TO GET DIRECTION FROM COUNCIL, RIGHT? I RECOGNIZE THAT APPROVING, IF YOU WILL, THE PROPOSED TAX RATE IS NOT THE FINAL TAX RATE AND YOU'RE CORRECT, COUNCILWOMAN BUTLER, THAT THAT'S THE CASE, BUT IN THE ABSENCE OF SPECIFIC DIRECTION, RIGHT, I HAVE NOTHING TO GO OFF OF TO KNOW HOW TO PREPARE, WHAT TO PREPARE LEADING UP TO WHATEVER DISCUSSION YOU WANT TO HAVE. AND SO IF COUNCIL DOES WANT TO LET'S SAY ENTERTAIN OPTIONS THAT AREN'T THE VOTER APPROVAL TAX RATE, REGARDLESS OF WHETHER YOU NEED TO APPROVE THAT TONIGHT JUST FOR CONVERSATION SAKE I STILL NEED DIRECTION ON WHAT YOU WANT TO SEE.

WHAT YOU WANT TO EXPLORE.

>> NO, I THINK THAT'S FAIR AND I'LL POINT OUT TOO AND I WILL SAY THIS, I KNOW THAT WE HAVE HAD MAYORS IN THE PAST AND I'M THINKING SPECIFICALLY I BELIEVE OF MAYOR MCCOY WHO KIND OF HAD THE CONCEPT OF THROW OUT THE MAX RATE, PUT THAT OUT AS A PROPOSED RATE AND THEN FIGURE IT OUT IN THE INTERIM, WHICH, YOU KNOW, THAT WAS KIND OF THE APPROACH THAT THROUGH THAT -- I DON'T KNOW IF ADMINISTRATION IS THE RIGHT WORD, BUT THAT WAS THE APPROACH THAT WAS TAKEN. WE HAVEN'T DONE THAT IN RECENT YEARS, NOT THAT PROBABLY PASSED AWAY -- WE HAVEN'T BEEN IN THE SAME KIND OF SITUATION PRIMARILY BECAUSE OF THE LACK OF GROWTH AND THINGS OF THAT NATURE, SO THAT'S WHY I SAY, YOU KNOW, I FULLY UNDERSTAND THE PROPOSAL AT THE MAX RATE AND IF THAT IS WHAT COMES OUT OF THIS MEETING, IT WOULD MAKE SENSE THEN I THINK THERE AT LEAST NEEDS TO BE SOME DISCUSSION IN THE INTERIM TO MR. GARZA ABOUT, OKAY, IF WE'RE NOT GOING WITH THE MAX RATE, WHAT RATE IS SUSTAINABLE. WHAT STILL GETS US TO ACCOMPLISH OUR OBJECTIVES BASED ON WHAT WE HAVE IN THE BUDGET ITSELF. THAT'S WHY I SAY, YOU KNOW, I FULLY UNDERSTAND THE PROPOSAL AT THE MAX RATE AND IF THAT ISIS COMES OUT OF THIS MEETING, IT WOULD MAKE SENSE THERE NEEDS TO BE SOME DISCUSSION IN THE INTERIM SO TO MR. GARZA --

>> I GUESS SUGGESTING THAT NORMALLY WHEN WE PROPOSE THIS TAX RATE AT THIS JUNCTURE, THAT IT'S NOT AN ACTUAL VOTE, THAT IT'S BASICALLY JUST PRESENTING THE TAX RATE TO SORT OF PUBLISH THAT AS THE PROPOSED T' COME UNTIL YOU ACTUALLY CONSIDER THE

[02:30:02]

WE DON'T WANT TO NECESSARILY PUT YOU IN A POSITION TO VOTE ON THIS IF THAT IS NOT WHAT NEEDS TO HAPPEN.

I UNDERSTAND IT'S POSTED AS A RESOLUTION WHICH OBVIOUSLY GIVES THE LOOK OR THE ON CONTINUES THAT IT'S SOMETHING THAT NEEDS TO BE PASSED.

BUT IF THAT WAS AN OVERSIGHT ON OUR PART IN HOW WE POSTED IT THEN WE NEED TO CLARIFY THAT RIGHT NOW AND SO, APRIL, I DON'T KNOW IF YOU CAN HELP DO

RESEARCH. >> IT WAS POSTED THE SAME WAY LAST YEAR.

>> AND IT WAS VOTED ON LAST YEAR?

>> YES, SIR. >> OKAY.

>> IT'S NOT A TAX VOTE, YOU'RE CORRECT ABOUT THAT.

IT'S A --

>> DISCUSSION.

>> IT'S A PROPOSED --

>> WHEN YOU HAVE YOUR ORDINANCE

VOTE. >> CORRECT.

>> THIS JUST PUTS IT OUT THERE TO

START THE CONVERSATION. >> THAT'S CORRECT.

>> OKAY.

>> SORRY ABOUT THAT BUT THANK YOU FOR CONFIRMING AND CLARIFYING.

>> YOU'RE WELCOME. YOU LOOK LIKE YOU'RE CONTEMPLATING.

>> I UNDERSTAND YOUR CONCERNS AND IT SHOULD BE DISCUSSED. THE POINT IS THE COMPENSATION COMMITTEE, PART OF US GIVING RAISES TO POLICE AND FIRE IS PREDICATED ON THIS, AND, IN FACT, IF YOU GO BACK TO THAT SLIDE, THERE'S EIGHT THINGS I BELIEVE ON THE SLIDE, TWO OF THEM HAVE AS TERRIFICS BECAUSE TWO OF THEM -- AND IT SHOULD BE DISCUSSED. THE POINT IS THE COMPENSATION COMMITTEE, PART OF US GIVING RAISES IS PREDICATED ON THIS. IF YOU GO BACK TO THAT SLIDE THERE'S EIGHT THINGS I BELIEVE ON THE SLIDE.

TWO HAVE AS TERRIFICS BECAUSE TWO OF THEM HAVE NOT HAPPENED YET.

IF THEY DO NOT HAPPEN, WE WOULD WIND UP WITH A SHORTFALL.

SO NOBODY WANTS TO RAISE ANYBODY'S TAXES.

EVEN IF WE'RE DOING WELL I WOULDN'T WANT TO RAISE EVERYBODY'S TAXES. AND I THINK WE SHOULD HAVE A DISCUSSION ON IT.

IT'S NECESSARY AND WE'VE BEEN BEHIND THE EIGHT BALL. THIS IS A CHANCE FOR US TO GET TO WHERE WE NEED TO BE.

>> WHAT'S THE EXPECTATION THAT WE HAVE MOVING FORWARD ON THIS TOPIC?

>> AGAIN, I UNDERSTAND WHY THE MAX RATE IS BEING PROPOSED.

I COMPLETELY GET IT. IS THERE A RATE BETWEEN THESE TWO THAT HITS IN A SPOT THAT WE CAN STILL FULFILL OUR COMMITMENT FOR THAT BECAUSE THOSE NEED TO HAPPEN.

I MEAN, THERE'S NO DOUBT. THEY HAVE TO BE IN THERE.

IS THERE A RATE THAT STILL HITS THAT COMMITMENT AND I THINK WE NEED TO ASK WHAT IS THE IMPACT OF THAT RATE DOWN THE ROAD AS WELL. WE NEED TO KNOW NOT JUST WHAT IT IS RIGHT NOW BUT WHAT IS IT DOWN THE ROAD.

>> I THINK YOU'RE ASKING MR. GARZA TO COME BACK WITH WELL, IF I COME UP WITH A LOWER RATE, THESE ARE THE THINGS THAT I'M GOING TO HAVE TO CUT.

THAT'S THE SUBSTANTIAL WAY --

>> I THINK YOU'RE MAKING AN ASSUMPTION THAT THERE WOULD HAVE TO BE CUTS.

>> I THINK IT'S RYAL INDICATION.

>> WE CAN BE MORE AGGRESSIVE WITH SOME OF OUR BUDGETING PARTICULARLY ON THE SALES TAX SIDE. WE CAN LOOK AT PERHAPS NOT ADDITIONS AT THIS POINT IN TERMS OF NEW POSITIONS, THINGS OF THAT -- I'M SPITBALLING HERE.

THINGS OF THAT -- I MEAN, I THINK IT'S WORTH A DISCUSSION AND IT'S WORTH EXPLORING TO SAY, HEY, IS THERE SOMETHING THERE THAT STILL GETS US TO MIGHT WHAT OUR PRIMARY OBJECT THROUGH THE BUDGET IS, WHICH, QUITE FRANKLY, THIS IS A VERY HEAVY PUBLIC CENTRIC BUDGET AND COMMITTED TO THOSE THINGS AND NEED TO DO

THOSE THINGS. >> LIKE POSSIBLY FINDING OTHER REVENUE SOURCES?

>> NO, I'M NOT SAYING THAT AT ALL.

I'M SAYING THAT WE CAN LOOK AT ADJUSTING OUR BUDGET NUMBERS BASED UPON PERHAPS LESS CONSERVATIVE -- ON SALES TAX.

THAT'S NOT ANOTHER REVENUE SOURCE.

>> A HIGHER --

>> RIGHT. SO I THINK THINGS ALONG THOSE LINES ARE REALLY WHAT I'M TALKING ABOUT AND I

[02:35:02]

>> AND IT'S SOMETHING THAT WE CAN COME BACK TO, COME BACK TO DISCUSSION AT THE NEXT COUNCIL MEETING SO IT'S NOT ANYTHING THAT WE NEED TO HAVE TO WAIT TILL NEXT MONTH AND SO WE WOULD BE READY AND PREPARED TO SHARE SOME OF THIS ADDITIONAL INFORMATION AS SOON AS OUR NEXT COUNCIL MEETING.

>> RIGHT.

NO, AND I THINK THAT WOULD BE APPROPRIATE.

>> I GUESS, YEAH, JUST ALSO I GUESS HE SAID TOO THE IMPACT OF THE DIFFERENT RATE, THE IMPACT OF THIS RATE OR THE IMPACT OF THE DIFFERENT RATE GOING FORWARD IN TERMS OF TAX VALUE, NOT TAX VALUES, BUT RATES WITH THE NEW CAP.

>> YES, SO I'M --

>> EASY TO DO.

>> CRYSTAL BALL.

>> YEAH, THAT WOULD BE NICE IF I HAD ONE.

BUT, YEAH, I'M BASICALLY ENVISIONING PRESENTING IT IN TWO WAYS. ONE, SOLELY FOCUSED ON IMPACT OF RECURRING REVENUE HOW AND MOVING FORWARD. TO KIND OF ILLUSTRATE, YOU KNOW, IMPACT OF THE COMPOUNDING EFFECT OR LACK THEREOF, RIGHT.

AND THEN SECOND SHOW YOU SOME EXAMPLES OF IF WE DID MAKE A CHANGE, WHAT WOULD ACTUALLY CHANGE, YOU KNOW, IN THE ACTUAL PROPOSED BUDGET AND WHETHER THAT BE INCREASING SALES TAX REVENUE TO MAKE UP FOR ANY DECREASE ON THE PROPERTY TAX SIDE OR WHETHER THAT BE A COMBO OF THAT PLUS, YOU KNOW, REDUCING SOME EXPENDITURES, SO THAT'S HOW I ENVISION PRESENTING THAT UPDATE TO YOU AT THE NEXT COUNCIL MEETING.

>> ANOTHER THING THAT NEEDS TO BE BROUGHT UP IN ONCE WE RAISE PEOPLE'S SALARIES AND POLICE AND FIRE, THEY'RE IN THE STEP THING SO THERE'S AUTOMATICALLY BE INCREASES THAT GO IN THE FUTURE, SO IF YOU'RE NOT INCREASING YOUR REOCCURRING REVENUE THEN YOU'RE GOING TO HAVE TO MAKE IT UP SOMEWHERE ELSE, SO IT'S IMPORTANT THAT WE LOOK AT THAT TOO.

I MEAN, IT'S EASY -- IT'S NOT A ONE- TIME EXPENSE. IT'S AN EXPENSE THAT WILL GROW OVER TIME. SO HOW ARE WE GOING TO GROW THAT OVER TIME.

>> WHICH LOOKING BACK AT -- LOOKING BACK AT THAT AND SAYING WHAT THAT COMPOUNDED AMOUNT WOULD HAVE BEEN WAS IMPORTANT TO ME TO HAVE YOU SPEAK

TO. >> YEAH, AND WE CAN SHOW THAT. YOU KNOW, THAT'S ACTUALLY WHY I INCLUDED THE SLIDE TOO ON ONGOING GOALS OF THE COMMITTEE BECAUSE I THINK IN ORDER TO HAVE A TRUE DISCUSSION ON THE LONG- TERM IMPLICATIONS OF THE DECISION WE'RE GOING TO HAVE TO MAKE SOME ASSUMPTIONS, RIGHT? I WILL HAVE TO PAINT A PICTURE TO YOU ON WHAT DOES THIS LOOK LIKE IF NEXT YEAR WE HAVE ANOTHER FLAT YEAR? WHAT DOES THIS LOOK LIKE IF WE HAVE FLAT VALUES ARE TO THE NEXT TWO YEARS? WHAT DOES IT LOOK LIKE IF WE WANT TO BE MORE AGGRESSIVE WITH THE GENERAL POPULATION? HOW MUCH DOES IT COST TO DO A 20% OR 3% ACROSS THE BOARD INCREASE FOR PAY FOR GENERAL

POPULATION. >> I MEAN, I THINK IT WOULD BEHOOVE US IF WE WANT TO GO DOWN THAT PATH TO TAKE INTO ACCOUNT SOME ASSUMPTIONS, BOTH ON THE REVENUE SIDE AND ON THE EXPENSE SIDE BECAUSE OTHERWISE, WE'RE JUST SHOOTING BLIND, RIGHT? ENZO IF EN -- AND SO IF YOU'RE COMFORTABLE WITH THAT I THINK THAT'S THE BEST WAY TO GO AND ONLY WAY TO ILLUSTRATE THE IMPACT OF THE COMPOUNDING EFFECT OR LACK THEREOF.

>> I THINK YOU'RE EXACTLY RIGHT.

I THINK YOU HAVE TO MAKE SOME ASSUMPTIONS.

>> RIGHT.

>> I THINK THAT'S REALLY IMPORTANT AND THAT SLIDE WHERE YOU SHOWED WHERE EVERYBODY IS, THEY'RE HURTING FOR TAXES AND THEY'VE GOT A RAISE IS BECAUSE THEY DIDN'T SAKE -- TAKE INTO ACCOUNT THE FURTHER EXPENSES. WE'RE NOT JUST BUDGETING AND IT DROPS OFF. WE'VE GOT REOCCURRING EXPENSES THAT ARE GOING TO GET -- THE FIRE DEPARTMENT EXPENSES ARE GOING TO GO UP.

THE POLICE IS GOING TO GO UP. SO, WHEN WE DO THE TAX RATE, IT'S NOT JUST WE COULD CUT STUFF OUT AND LOWER THE TAX RATE, BUT WE NEED TO UNDERSTAND THE REOCCURRING THINGS THAT WE HAVE GOING. AND NOT JUST -- NOT JUST PERSONNEL, THE COST OF THINGS. IF COST OF CHEMICALS GO UP, WE -- IF COST OF DOING A STREET GOES UP, I'M NOT FOR RAISING PEOPLE'S TAXES.

IF I COULD AVOID IT, I WOULD. IF WE HAD GROWTH WE COULD COVER IT UP. WE DON'T HAVE GROWTH BUT WE DO HAVE TO TAKE -- WE HAVE TO GIVE PEOPLE THE SERVICES AND TRY AND HAVE ENOUGH FIRE AND POLICE TO SERVICE THE CITY AND THE ONLY WAY WE CAN DO THAT IS IF WE PAY THEM MORE AND WITH THAT COMES REOCCURRING EXPENSES, SO I JUST WANT TO MAKE SURE THAT

[02:40:01]

>> I THINK IT HAS TO BE, ABSOLUTELY. NO, THANK YOU FOR THAT.

>> OKAY, ALL RIGHT.

>> AND WE ALSO NEED TO KNOW WHAT CIP PROJECTS MIGHT HAVE TO BE PUSHED BACK OR SCALED BACK, I.E.

COMMUNITY CENTER IN THE FUTURE. IF IT DOES -- IF, THERE'S THAT QUICK WORD, IF WORST COMES TO WORST.

>> WELL, ONE THING TO KEEP IN MIND TOO WHENEVER WE'RE TALKING ABOUT EXPENDITURES THERE'S A BIG DIFFERENCE BETWEEN RECURRING EXPENDITURES AND CIP CENTRIC. THE MONEY WE'RE PROPOSING TO PUT TOWARDS THE COMMUNITY CENTER IS NOT MONEY YOU CAN USE TO PLAY EMPLOYEES. SO NOT ALL MONEY IS CREATED EQUAL SO OUR INTENT FOR PURPOSES OF THIS CONVERSATION IS GOING TO BE SOLELY FOCUSED ON THE RECURRING SIDE OF IT. BECAUSE THAT'S THE ONLY WAY TO TRULY COMPARE APPLES TO APPLES IN TRYING TO FORECAST SOMETHING OUT.

NOW, IF THERE WAS AN OPTION FOR US TO MOVE MONEY FROM THE INS RATE TO THE M & O RATE THEN WHAT YOU SUGGESTED WOULD BE ABSOLUTELY APPLICABLE. BUT CURRENTLY WE CANNOT MOVE MONEY FROM THE INS RATE TO THE M & O RATE WITHOUT WORKING AGAINST THE CAP SO DELAYING CIP PROJECTS WOULDN'T DO ANYTHING TO THE M & O SIDE THE WAY SB2 IS

STRUCTURED. >> I'LL ASK A QUESTION THAT I DON'T THINK IT'S POSSIBLE, BUT YOU SAID THERE WOULD BE NO BOND REDEMPTION AND THE BOND RATE WENT UP A LITTLE BIT TOO, OKAY. THE INS RATE WENT UP A LITTLE BIT TOO. COULD MONEY BE USED TO REDEEM BONDS FROM ANOTHER PART OF THE CITY'S BUDGET.

>> YES.

>> THUS LOWER THE INS RATE.

>> I DON'T KNOW IF IT WOULD LOWER THE INS

RATE. >> INTO THE FUTURE.

>> BUT WE CAN USE MONEY FROM ANYWHERE TO PAY THAT OFF.

IT DOESN'T HAVE TO COME FROM THE INS RATE FOR THE BOND REDEMPTION.

>> ALL RIGHT. ANY FURTHER --

>> OKAY, LET'S GO BACK TO THE INS RATE FOR A MINUTE.

WE'RE GOING TO DO BONDS FOR THE COMMUNITY CENTER, RIGHT?

>> YES.

>> NOW, THAT MONEY IS NOT GOING TO BE SPENT FOR AWHILE, RIGHT? WE'RE NOT ACTUALLY GOING TO PAY A CONTRACTOR FOR AWHILE, RIGHT? NOW, WE'RE EITHER GOING TO GAIN INTEREST ON THAT --

>> SO, THE COMMUNITY CENTER IS A LITTLE TRICKY, BECAUSE WE BASICALLY THE FUNDING STRUCTURE TO PAY FOR THOSE COS IS BEING ABSORBED BY THE CORPORATION FOR THE FIRST FEW YEARS.

AND SO YOU MAY RECALL THAT WHEN WE DEVELOPED THE FINANCING MECHANISM FOR COMMUNITY CENTER, WE BASICALLY SHOWED YOU THAT WE'RE -- WE'RE GOING TO SEE A REDUCTION IN DEBT SERVICE PAYMENTS IN 2030.

>> OKAY, I GOT YOU.

>> AND SO WHAT WE BASICALLY PROPOSED WAS LET'S ISSUE SOME DEBT NOW FOR THE PROJECT, THE CORPORATION WHO IS CONTRIBUTING 5 TO $6 MILLION DURING THE PROJECT, WE'LL USE THAT 5 OR $6 MILLION TO MAKE THAT PAYMENT OVER THE FIRST THREE OR FOUR YEARS AND THEN IN 2030 OR '31, ONE OF THOSE, THE DEBT -- THE INS RATE STARTS TO PICK IT UP WITH NO IMPACT TO THE RATE BECAUSE WE WOULD HAVE

FINISHED PAYING OFF SOME DEBT. >> OKAY.

BUT THE BOND WILL BE -- WE WON'T PAY -- WE'LL HAVE THIS MONEY FROM THE BOND WHICH WON'T GO TO PAYING OFF THE CONTRACTORS FOR AWHILE, RIGHT? IT WILL EARN INTEREST SOMEWHERE?

>> WELL, THERE'S THE POSSIBILITY FOR THAT BUT KEEP IN MIND THE CONSTRUCTION IS TO START IN MARCH OF '26 SO THERE'S NOT GOING TO BE MONEY SITTING AROUND FOR AWHILE.

I MEAN, WE'RE ON A TIMETABLE WITH THE PROJECT THAT WE -- CONSTRUCTION WOULD START NEXT CALENDAR YEAR AND BE COMPLETED BY EARLY PART OF '27 SO THERE ISN'T A BUNCH OF MONEY THAT'S JUST SITTING THERE. AND EVEN IF -- WE CAN'T EVEN DO THAT ANYWAY.

>> AND WE'VE ALREADY ASSUMED I THINK $1.5 MILLION IN INTEREST INCOME FROM THOSE FUNDS TO GO TOWARDS THAT PROJECT.

>> IT'S PART OF THE STRUCTURE --

>> THAT WAS PART OF THE FUNDING?

>> ARE YOU TRYING TO IDENTIFY UPON FOR A BOND REDEMPTION?

>> YEAH, BECAUSE I'D LIKE TO LOWER THAT RATE -- THAT RATE INCREASES THE TAX FOR TAXPAYERS TOO AND IF I CAN LOWER THE DEBT RATE, I CAN LOWER THE TAX RATE FOR PEOPLE JUST BECAUSE THE M & O, WE NEED THE MONEY IN THE M & O PART AND IF WE COULD LOWER THE INS RATE.

>> IT OFFSETS, RIGHT.

>> AND THAT'S WHY I'M --

>> I GUESS THAT'S --

>> I'M REACHING. I'M TRYING TO FIND --

>> BACK TO RICKY'S POINT THAT WOULD BE THE CONNECTION, RIGHT? WE WOULDN'T BE ABLE TO MOVE UPON FROM THE INS RATE LIKE LITERALLY TO THE M & O RATE BUT

[02:45:05]

RATE. >> EXACTLY.

>> IT WOULD OFFSET THE INCREASE ON THE M & O SIDE IS WHAT YOU'RE SUGGESTING.

>> YES.

>> IN THEORY THAT COULD WORK BUT IT TAKES A WHILE FOR THAT TO HIT.

>> YEAH, I KNOW.

>> YEAH, TRUE. SO ANYWAY BUT THAT'S --

>> OKAY.

>> SORRY.

>> NO. THAT'S FINE. NO, WE NEED -- THIS IS THE KIND OF DISCUSSION WE HAVE ON THIS. SO ARE THERE ANY OTHER QUESTIONS BECAUSE WHAT'S BEFORE US AT THIS POINT IS A MOTION AND A SECOND FOR PROPOSING THE MAX RATE WHICH WOULD BE -- WHICH AS WE DISCUSSED IF WE WANT TO LOOK AT OTHER OPTIONS WOULD BE THE RATE THAT WE WOULD WORK OFF OF. CORRECT? EVERYBODY IS CLEAR ON THAT? THAT'S NOT A FINAL VOTE.

THAT'S JUST A PROPOSED RATE.

OKAY? ALL RIGHT. SO GIVEN THAT THEN ALL IN FAVOR OF THAT PROPOSED RATE, SAY AYE.

>> AYE.

>> I WILL VOTE NO. I'LL BE THE ONE NO

VOTE. >> 5-1.

>> 5-1.

>> OKAY.

>> OKAY? I UNDERSTAND WE DO NOT HAVE AN EXECUTIVE SESSION.

>> THAT'S CORRECT.

>> AND SO WE ARE OUT AT 7:46 P.M.

* This transcript was compiled from uncorrected Closed Captioning.