Jun 11, 2025 City Council Budget Workshop

[00:00:06]

BUDGET WORK SESSION. IT'S WEDNESDAY, JUNE 11TH AND THE MEETING IS NOW CALLED TO ORDER.

IF YOU WOULD PLEASE SILENCE YOUR CELL PHONE AND STAND IF YOU'RE ABLE, BECAUSE WE'RE GOING TO DO THE PLEDGE OF ALLEGIANCE AND WE'RE GOING TO HAVE A QUICK PRAYER. I PLEDGE ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA. AND THE INDIVISIBLE. NOW FOR QUICK PRAYER. GRACIOUS AND LOVING GOD, WE GATHER HERE TO WORK ON THE FINANCES OF THE CITY. WE GIVE YOU THANKS FOR THIS STAFF, FOR THE WORK THEY'VE PUT IN ALREADY, AND FOR THIS COUNCIL AND FOR THE GUIDANCE AND DIRECTION THAT WE NEED TO LIFT THIS CITY UP, LORD, AND PROVIDE THE DIRECTION AND THE VISION THAT YOU WOULD HAVE US HAVE. IN JESUS NAME WE PRAY. AMEN. AMEN. MR. CITY MANAGER, MAYOR, DO YOU WANT TO DO ROLL CALL? YES, WE DO NEED TO DO ROLL CALL. JUST CHECKING. OKAY. THANK YOU. MAYOR WEST, PRESENT MAYOR PRO TEM TURNER. ABSENT. COUNCIL MEMBER. DORIO PRESENT. COUNCIL MEMBER.

HILLIARD. PRESENT. COUNCILMEMBER. WILLIAMS. COUNCIL MEMBER. SHERWOOD. ABSENT AND COUNCIL MEMBER. CRENSHAW. ABSENT. ALL RIGHT. AND THERE IS GOING TO BE A LUNCH UPSTAIRS IN THE CITY MANAGER'S CONFERENCE ROOM AFTER THIS. MR. CITY MANAGER. GOOD MORNING, MAYOR AND COUNCIL, ONCE AGAIN, IT'S GREAT TO BE HERE WITH YOU TO DISCUSS THE 2026 BUDGET. THIS IS OUR SECOND MEETING OF THE COUNCIL TO HAVE THIS FULL DISCUSSION ON IT. TODAY. WE'RE GOING TO COVER SOME OF THE THINGS. THIS LAST TIME WE HAD ABOUT A 30,000 FOOT VIEW. TODAY WE'LL GET ABOUT 20,000 FOOT VIEW, WITH ONE OF THE MAIN THINGS BEING THAT WE'LL BE LOOKING AT PROJECTIONS FOR THE REST OF THIS YEAR. NOW, WHEN WE SET THE BUDGET, A BUDGET AT ANY POINT IS JUST A SNAPSHOT IN TIME. AND SO WHEN WE PREPARED THE BUDGET, THERE WAS A SNAPSHOT IN TIME. SO AS THE YEAR HAS PROGRESSED, WE'VE GONE THROUGH AND BEEN ABLE TO UPDATE THINGS AND LOOK AT PROJECTIONS FOR THE REST OF THE YEAR, AND WE'LL BE SHARING THOSE PROJECTIONS WITH THE THIS YEAR, I MEAN, TODAY, I'M SORRY, I APOLOGIZE. AND, YOU KNOW, AS I SAID, THINGS HAVE CHANGED. WE WORKED ON SOME THINGS. WE'VE ADJUSTED BUDGETS, WE'VE MADE REDUCTIONS, WE'VE GOTTEN MORE INFORMATION. SO AS WE'VE GONE ALONG, WE'VE BEEN ABLE TO MAKE THAT PICTURE MUCH CLEARER DURING THIS PROCESS. SO WE'LL BE DOING THAT TODAY. AND ALSO WE'RE JUST GOING OVER A STRATEGIC PLAN AND TOUCH A LITTLE BIT ON THE BOND FINANCING. I JUST WANT TO GO OVER THE CALENDAR WITH YOU A BIT. DO WE HAVE THAT ON THE SCREEN? JUST A COUPLE OF FEW THINGS. LIKE TODAY WE'RE HAVING THAT SECOND BUDGET DISCUSSION WITH COUNCIL AND WE'LL BE GOING ALONG THE WAY. WE'LL BE DOING THINGS. THE NEXT MAJOR THING WITH STAFF IS WHERE THEY WILL BE MEETING WITH THEM INDIVIDUALLY TO DISCUSS THEIR INDIVIDUAL BUDGETS AND GETTING THAT INFORMATION AND PUTTING TOGETHER A DRAFT THAT WILL BE PRESENTED TO YOU AT THE THIRD WORKSHOP BY THE INDIVIDUAL DEPARTMENT DIRECTORS. JUST LOOKING FURTHER ALONG THE LINE IN TIME AT SECOND BUDGET WORKSHOP IS DUE FOR JUNE 11TH. BILL SPECIAL WORK SESSION WITH STAFF AND THE COUNCIL. JUNE 11TH SECOND. NO, THAT'S THE DAY.

I'M SORRY. JULY 30TH. THAT'S THE THIRD BUDGET WORK SESSION. I APOLOGIZE. AND THEN BY AUGUST 18TH WE'LL HAVE A PROPOSED BUDGET IN FIVE YEAR CIP. IT'S GOT IT HAS TO BE FILED WITH THE CITY CLERK'S OFFICE. IS IT 45 DAYS OR I FORGET HOW MANY DAYS BEFORE COUNCIL TO CONSIDER ADOPTION OF THE BUDGET. SO ON AUGUST 18TH, THE PROPOSED BUDGET WILL BE FILED IN THE CITY CLERK'S OFFICE, THEN AUGUST 19TH, THE NEXT DAY I'LL BE PRESENT, MAKING A PRESENTATION OF THAT BUDGET TO CITY COUNCIL. IN BETWEEN, THERE ARE SOME OTHER THINGS YOU WILL HAVE, LOGISTICAL THINGS YOU HAVE TO DO. AS FAR AS CONSIDERING TAX RATES AND MAKING PUBLICATIONS AND NOTICES. SO FROM AUGUST 19TH TO SEPTEMBER 16TH, THAT'S WHEN YOU WILL CONSIDER APPROVAL OF THE BUDGET.

SO THAT THAT'S A WHOLE TIME PERIOD UNTIL IT'S FORMALLY PRESENTED TO YOU TO CITY COUNCIL

[00:05:05]

[1. Bond Financing 101]

WE'RE GOING TO ASK MR. DUSTY TRAYLOR TO COME UP, DUSTY AND DEREK TO COME UP AND DO A PRESENTATION ON BOND FINANCING. THANK YOU, MR. WILLIAMS. MAYOR, MEMBERS OF COUNCIL, DUSTY TRAILER WITH RBC CAPITAL MARKETS. WE HAVE THE HONOR AND PRIVILEGE OF SERVING THE CITY OF BEAUMONT AS FINANCIAL ADVISOR. AND DEREK IS BOND COUNSEL TO THE CITY WITH WITH HOLLAND AND KNIGHT JUST KIND OF A BRIEF BIO AND KIND OF WHO WE ARE. WE ARE CONSULTANTS HIRED BY THE CITY TO REPRESENT THE CITY ON THE DEBT, THE DEBT ISSUANCE PROCESS. WHENEVER YOU'RE GOING TO FINANCE VARIOUS CAPITAL IMPROVEMENT PROGRAMS THROUGH VARIOUS TYPES OF DEBT INSTRUMENTS. AND SO BEFORE YOU ON THIS PAGE, WE JUST KIND OF HAVE OUR OUR BIOS THERE. I'VE BEEN WITH RBC CAPITAL MARKETS FOR ALMOST 25 YEARS. IT'LL BE 25 YEARS IN JANUARY. AND I WORK PRIMARILY AS A FINANCIAL ADVISOR, SOMEWHAT AS AN UNDERWRITER AS WELL FOR ISSUERS ALL ACROSS THE STATE OF TEXAS. I DON'T I DON'T FINANCE ANYTHING OUTSIDE OF THE TEXAS MARKET. THERE'S ENOUGH GOING ON IN TEXAS TO FOCUS SOLELY ON TEXAS CITIES, COUNTIES, SCHOOL DISTRICTS AND THAT SORT OF FINANCINGS. DON'T HOLD THIS. DON'T Y'ALL DON'T ALL HOLD THIS AGAINST ME. I AM AN AGGIE. BUT AGAIN, HAVE BEEN IN THE BUSINESS FOR 25 YEARS AND GREATLY ENJOY DOING OUR WORK FOR THE CITY OF BEAUMONT. AND AS DUSTY SAID, I'M DEREK MITCHELL WITH HOLLAND AND KNIGHT. I'VE BEEN PRACTICING ABOUT 25 YEARS. I'VE BEEN WITH THE CITY. I PUT THAT IN, LOOKED AT THAT THIS WEEK. 15 YEARS.

IT'S BEEN A WHILE. YEAH. SO IT'S NICE TO SEE, YOU KNOW, SOME NEW FACES AND FACES I'VE KNOWN FOR A WHILE. BUT DUSTIN, I'VE WORKED TOGETHER HELPING BEAUMONT WITH THEIR DEBT ISSUANCES PRETTY MUCH AROUND THE SAME TIME. SO WE ENJOY IT AND WE WANT TO COME IN TO EDUCATE YOU A LITTLE BIT ABOUT JUST THE BASICS OF THE BOND BOND BUSINESS KIND OF BOND, KIND OF JUST BOND 101, ETC. SO WE'LL MOVE, MOVE OVER TO THE NEXT SLIDE. THE NEXT SLIDE KIND OF GIVES JUST A DEFINITION. HEY, WHAT THE HECK IS A BOND? BOND IS YOU KNOW, WE THROW THIS TERM AROUND BUT A LOT OF PEOPLE GO WHAT IS BOND? BOND IS JUST ANOTHER NAME FOR A LOAN. IT'S IN IN IN OUR WORLD, IT'S SECURITIZATION OF REVENUE STREAMS FOR THE CITY. BUT IT COMPRISES A LOAN THAT THE MUNICIPAL BOND, AN INTERESTING INTEREST BEARING SECURITY THAT'S ISSUED BY OR ON BEHALF OF, IN YOUR CASE, THE CITY. MOST OF THE TIME, MUNICIPAL BONDS ARE TAX FREE. THERE ARE INSTANCES WHERE ACTUALLY MUNICIPAL BONDS ARE TAXABLE TO THE HOLDERS OF THOSE BONDS, BUT IT'S JUST A PROMISE TO REPAY LENDERS FOR THEIR INVESTMENT IN IN CITY PROJECTS. AND YOU KNOW, WHEN I TEACH A CLASS AT U OF H SOMETIMES, AND ONE THING I TELL THE PUBLIC GLAD SOME OF THE PUBLIC'S HERE, I ALWAYS ASK THE STUDENTS TO RAISE THEIR HAND IF THEY ACTUALLY USE CASH TO BUY THEIR HOMES OR THEIR CARS, AND TYPICALLY NO ONE RAISES THEIR HAND. AND THE WHOLE POINT IS THE REASON WE HAVE MUNICIPAL DEBT IN GENERAL IS BECAUSE WE DON'T HAVE ENOUGH MONEY, RIGHT? WE DON'T TAX. WE DON'T WANT THE CITY TO TAX THE CITIZENS SUCH THAT IT'S A PAY GO. RIGHT. THERE'S JUST NOT ENOUGH CASH THAT COMES IN. SO YOU GOT TO ISSUE SOME DEBT TO HAVE ROADS AND BRIDGES AND CIVIC CENTERS AND THE LIKE. IF WE IF WE WERE TAXING ENOUGH TO BE ABLE TO DO EVERYTHING ON A PAYGO BASIS, TAX RATES WOULD HAVE TO BE DRAMATICALLY HIGHER. WE HAVE TO BRING IN A TON MORE CASH EVERY SINGLE YEAR. RIGHT. SO UNBEARABLE. SO IN THE IN THE ROLE OF KIND OF THE NAMES THAT YOU HEAR IN THE ISSUANCE PROCESS. SO YOU SEE IN THIS FLOW CHART UP AT THE TOP, FINANCIAL ADVISOR AND BOND COUNSEL ARE THE ENTITIES THAT WORK DIRECTLY WITH THE CITY, WITH THE ISSUER. AND THEN BELOW THOSE GUYS ARE VARIOUS OTHER OTHER ENTITIES THAT GET INVOLVED IN THE ISSUANCE PROCESS. SO YOU'VE GOT DISCLOSURE COUNCIL THAT'S NOT ALWAYS USED. THAT'S THE DISCLOSURE COUNCIL. ANYTIME YOU'RE GOING TO ISSUE A BOND THERE'S GOING TO BE A SECURITIES OFFERING STATEMENT. OFTENTIMES DISCLOSURE COUNCIL PREPARES THAT OFFERING STATEMENT. ACTUALLY HERE AT THE CITY OF BEAUMONT, WE ALL JUST KIND OF WORK TOGETHER WITH THE CITY TO PREPARE THAT OFFERING STATEMENT. THERE'S NOT NECESSARILY A SEPARATE DISCLOSURE COUNCIL INVOLVED.

THEN ONCE THAT OFFERING DOCUMENT IS OUT THERE AND IS READY TO GO ON TO THE STREETS AND INTO THE MARKET, THEN THE CITY USUALLY ENGAGES UNDERWRITERS, THOSE THAT'S THE INVESTMENT BANKS THAT

[00:10:01]

YEAH. NO. AT THE END OF THE DAY, BOND COUNSEL IS WHAT WE DO. THAT'S US AT THE TOP. DISCLOSURE COUNSEL AGAIN, AS DUSTY MENTIONED, IS THEY WOULD HELP TO ISSUE OR TO DRAFT THE WHAT WE CALL OFFICIAL STATEMENT. AND THEN YOU HAVE THE UNDERWRITERS. SO YOU HAVE THE YOU'VE HEARD OF THEM, THE BIG BANKS, THE GOLDMAN SACHS, THE JP MORGAN'S THE OTHERWISE THE RBC'S AND THEN UNDERWRITERS COUNSEL WOULD THEN REPRESENT THE UNDERWRITER AS WELL. SO THAT'S ANOTHER ANOTHER LAWYER IN THE MIX. AND THEN I GUESS THE CAPITAL MARKETS YOU KNOW I ALWAYS DESCRIBE CAPITAL MARKETS IS MOST OF US OWN MUNICIPAL BONDS AS PART OF YOUR 401 K OR 403 B PORTFOLIO BECAUSE IT'S REALLY SAFE DEBT. AND SO THE CLOSER I GET TO RETIREMENT, THE MORE BONDS I OWN. RIGHT. AND SO YEAH, CAPITAL MARKET INVESTORS TRUE. COULD COULD REPRESENT FOLKS LIKE ANY OF US THAT MAY HOLD MUNICIPAL BONDS IN OUR IN OUR PORTFOLIO. WE MAY, YOU KNOW, INDIVIDUALS MAY PURCHASE MUNICIPAL BONDS. THEY'RE ALSO THE BIG BOND HOUSES. YOU THINK OF STATE FARM, PIMCO, PIMCO, TRAVELERS, FEDERATED, THINGS LIKE THAT. AND THEY'RE COMING IN, YOU KNOW, AS OPPOSED TO INDIVIDUALS WHO MAY BE BUYING 25 TO $50,000 BONDS AT ONE TIME. THESE LARGER INVESTORS ARE ACTUALLY COMING IN AND BUYING MILLION TO 2 MILLION, $5 MILLION BLOCKS AT ANY ONE TIME.

AND YOU NEED ALL OF THOSE TO FILL IN THE FILL IN THE GAP, TO PURCHASE ALL OF THE BONDS OF A CITY'S MUNICIPAL DEBT ISSUE. SO ON THIS NEXT SLIDE, WE TALK A LITTLE BIT MORE ABOUT THE ROLES OF THE INDIVIDUALS THAT ARE INVOLVED OR THE TEAM MEMBERS THAT ARE INVOLVED IN THE ISSUANCE PROCESS. SO AS FINANCIAL ADVISOR SLASH MUNICIPAL ADVISOR, WE ARE KIND OF THE OVERALL STRATEGIST OF THE DEBT ISSUANCE PROCESS. DEREK'S PROBABLY NOT GOING TO LIKE THIS TERM, BUT SOMETIMES I THINK OF IT A LITTLE BIT LIKE IN A SPORTS ANALOGY, THE CITY, YOU GUYS SORT OF BEING THE COACH OF THE TEAM, YOU GUYS HAVE AN OBJECTIVE TO FINANCE VARIOUS PROJECTS AND YOU ENLIST A FINANCIAL ADVISOR KIND OF LOOK AT OUR ROLE IN THAT AS, AS A, AS A QUARTERBACK OF THE TEAM IN THAT YOU GUYS HAVE GOT A STRATEGY FOR HOW YOU WANT TO IMPLEMENT YOUR PLANS OF FINANCE.

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

[00:15:04]

IT'S VERY, VERY RATING AGENCIES THAT ARE PRIMARILY USING MUNICIPAL BOND BUSINESS OR MOODY'S STANDARD POOR'S FITCH. AND THERE'S ANOTHER ONE NOW THAT'S PRETTY ACTIVE CALLED KROLL. THAT'S THE THAT'S EXACTLY ALMOST EXACTLY THE SAME THING AS IF YOU OR I ARE GOING TO GO OUT AND TAKE OUT A LOAN TO BUY A HOUSE OR TO OR PURCHASE A CAR. THE BANK'S GOING TO PULL UP OUR CREDIT SCORE. THAT'S WHAT THE RATING AGENCIES ARE DOING. THEY ARE ASSIGNING A CREDIT SCORE TO THE CITY AND TO THE TO THE ACTUAL BONDS THAT ARE BEING ISSUED BASED ON THE REVENUE SOURCES THAT ARE SECURITIZING THOSE BONDS, AND THEN THAT RATING SCORE THEN PROVIDES INFORMATION TO THE INVESTORS ON HOW CREDITWORTHY IS THE CITY, THE HIGHER THE CREDIT WORTHY THAT THE CITY, THE HIGHER CREDIT RATING THAT THE CITY HAS, THE LOWER INTEREST RATE, JUST LIKE THE HIGHER OUR CREDIT SCORE THAT WE'VE GOT AS AN INDIVIDUAL BUYER OR INDIVIDUAL BORROWER, THE LOWER THE INTEREST RATES AT THE BANKS ARE GOING TO LEND TO US AT MUNICIPAL BOND INSURANCE. SO SOME ISSUANCES WILL HAVE INSURANCE AND OTHERS WON'T. AND I LOOK AT IT, IT'S JUST AN EASY, EASY MATH EQUATION. RIGHT. SO IF TRIPLE A IS THE TOP THEN IF YOUR INSURANCE IF YOUR IF THE ISSUER'S RATING IS LOWER OKAY THAN TRIPLE A, THEN DUSTY WILL SPEAK WITH YOUR CFO OR YOUR ASSISTANT CITY MANAGER CITY MANAGER ON WHETHER OR NOT YOU SHOULD GET INSURANCE RIGHT AT THE TRIPLE A RATING, SUCH THAT THE RATE, THE INTEREST RATE NOW WILL BE, I GUESS, THE INTEREST RATE INTEREST RATE JUST CAN BE A LITTLE BIT LOWER. EFFECTIVELY, YOU'RE JUST THE INVESTORS HAVE THE ABILITY TO RELY. IF YOU GO OUT AND PURCHASE BOND INSURANCE, THEY'RE NOT RELYING SOLELY ON THE FINANCIAL STRENGTH AND CREDIT OF THE CITY, BUT THEY'RE ALSO THE INVESTORS ARE ALSO LOOKING TO THE CREDIT WORTHINESS OF THIS INSURANCE COMPANY. AND BY THAT, ABLE TO BUY DOWN THE INTEREST RATE A LITTLE BIT. SO WHAT WE DO IS WE JUST SIMPLY LOOK AT ALL RIGHT, DOES THE MATH MAKE SENSE. AND THE ONLY WAY THE MATH MAKES SENSE IS IF IT LOWERS THE INTEREST RATE ENOUGH SUCH THAT THE COST OF THE INSURANCE IS PAID FOR BY THE REDUCTION IN INTEREST COSTS FOR THE CITY.

RIGHT. WE TALKED ABOUT THE ATTORNEY GENERAL AGAIN. THEY APPROVED THE FINAL. THEY APPROVED THE FINAL APPROVAL FOR THE TRANSACTION. BEFORE WE CLOSE THE PAYING AGENT, THEY RECEIVE THE FUNDS AND DISBURSE THE FUNDS THAT ARE PAID TO THE BOND HOLDERS. YEAH, YOU ANYTIME YOU'RE GOING TO DO A BOND DEAL, YOU MAY HAVE TWO, THREE, FOUR DOZEN DIFFERENT INVESTORS THAT ARE ACTUALLY BUYING THOSE BONDS. AND PAYING AGENT JUST STEPS IN THE WAY OF MAKING SURE THAT THE CITY DOESN'T HAVE TO WRITE 3 OR 4 DOZEN DIFFERENT CHECKS EACH PAYMENT DATE PAYING. YOU JUST SEND ONE PAYMENT TO THE PAYING AGENT, AND THEY SUBMIT IT TO THE INDIVIDUAL BOND HOLDERS. THEN ON THE NEXT SLIDE, WE LIKE TO JUST KIND OF GET INTO WHAT ARE SOME OF THE TYPICAL TYPES OF DEBT OR FINANCING MECHANISMS THAT ARE AVAILABLE TO CITIES. AND THIS IS SPECIFICALLY GEARED TOWARDS

[00:20:05]

BECAUSE YOU WOULD AMORTIZE THEM FOR AS LONG A PERIOD OF TIME. THEN ANOTHER TYPE OF DEBT THAT IS COMMONLY USED AND COMMONLY USED HERE AT THE CITY OF BEAUMONT ARE SYSTEM REVENUE SECURED BONDS. AND SPECIFICALLY HERE AT BEAUMONT, WE HAVE PRIMARILY USED WATER AND SEWER SYSTEM REVENUE BONDS. THOSE ARE BONDS THAT ARE THAT ARE ISSUED SOLELY FOR PROJECTS WITHIN THE UTILITY SYSTEM TO IMPROVE THE UTILITY SYSTEM OF THE CITY. THEY'RE NOT SUBJECT TO VOTER REFERENDUM BECAUSE THE DEBT IS NOT REPAID BY A TAX. THE DEBT ON THOSE IS REPAID SOLELY BY THE NET REVENUES OF THE UTILITY SYSTEM. AND THOSE BONDS CAN VARY. TYPICALLY, YOU KNOW, THEY CAN GO OUT TO 40 YEARS. TYPICALLY 20 TO 30 YEARS IS WHAT WE PAY BACK. AND WHEN WE TALK ABOUT THESE PAYBACK PERIODS, WE'RE ALWAYS TRYING TO MATCH THINGS UP, RIGHT. SO WE DON'T WANT TO GO OUT AND FINANCE. WE DON'T WANT TO HAVE THE CITY GO OUT AND FINANCE A VEHICLE WITH A 20 YEAR PAYBACK, OR WE DON'T HAVE THE CITY GO OUT AND FINANCE SHORT, USEFUL LIFE ITEMS WITH A 20 TO 30 YEAR PAYBACK. BUT THERE ARE CERTAIN ITEMS THAT WE KNOW ARE GOING TO LIVE IN THE GROUND AND ARE GOING TO HAVE A LONG, USEFUL LIFE. SO WE'RE ALWAYS TRYING TO MANAGE. ALL RIGHT.

WHAT'S THE APPROPRIATE LENGTH OF TERM FOR THIS DEBT BASED ON THE USEFUL LIFE OF THE ASSET, BUT ALSO TRYING TO MITIGATE THE RATE IMPACT IN TERMS OF THE RATE THAT IT COSTS CITIZENS AND RATEPAYERS. AND THEN SO, AS DUSTY MENTIONED, SO CITY OF BEAUMONT, CERTIFICATES OF OBLIGATION. AND THEN THE WATERWORKS AND SEWER BONDS ARE TYPICALLY WHAT WE ISSUE OTHER OTHER REVENUE, I MEAN OTHER BONDS OR OTHER OBLIGATIONS THAT ARE ISSUED IN GENERAL FACILITY REVENUE BONDS. THAT'S SOMETHING THAT IS SO THE REVENUES OF WHICH ARE SOLELY USED TO PAY OFF THAT DEBT. OKAY. SO WE'VE SEEN THOSE BEFORE. BUT IT'S AGAIN, IT'S OFF THE CITY'S BOOKS. IT'S SPECIFICALLY FOR IT'LL BE PAID FOR. THE BONDS WILL BE PAID FOR BY THE REVENUES FOR A SPECIFIC SPECIFIC PROJECT. EXCUSE ME. HOTEL OCCUPANCY TAX BOND BONDS. THAT'S I'LL CALL THEM CONVENTION AND ENTERTAINMENT. TOURISM BONDS. THOSE ARE USED SPECIFICALLY FOR THAT PURPOSE AS WELL. SALES TAX REVENUE BONDS VERY SIMILAR TO HOT BONDS. THEY'RE USED AGAIN SPECIFICALLY FROM THAT SOURCE. AND THEN YOU HAVE TAX INCREMENT OR TAX INCREMENT TERS TERS MONEY. THAT MEANS YOU'VE CREATED A SPECIAL DISTRICT WITHIN THE CITY OR THE COUNTY. AND THE SUM OF THE TAX REVENUE THAT ACTUALLY IS PROPERTY TAX. SOME, SOME PROPERTY TAX COULD BE SALES TAX THAT ARE GENERATED IN A SPECIFIC BOUNDARY. YOU USE THE FUNDS TYPICALLY FOR THAT BOUNDARY ALONE. THEN PUBLIC IMPROVEMENT BOND OR PIGS PIGS, PIGS ARE PUBLIC IMPROVEMENT DISTRICT BONDS. THOSE ARE SIMILAR TO TERSS JUST A DIFFERENT WAY TO FINANCE IT, RIGHT? OFTEN USING DEVELOPMENT TYPE DEALS ESPECIALLY ESPECIALLY LIKE WE SEE THEM OFTENTIMES IN CENTRAL TEXAS, NORTH TEXAS, A LOT OF ISSUERS ARE UTILIZING PUBLIC IMPROVEMENT DISTRICT BONDS TO IMPLEMENT THE PUBLIC IMPROVEMENTS WITHIN, SAY, A NEW MASTER PLAN COMMUNITY, THINGS LIKE THAT. AND SO THOSE ARE BECOMING A VERY, VERY POPULAR DEBT INSTRUMENT TYPE. ALL OF THESE, ANYTHING THAT WE'VE LISTED HERE UNDER OTHER, THOSE ARE A LITTLE BIT UNIQUE IN TERMS OF THEY'RE UNIQUE IN TERMS OF THEY'RE NOT SECURITIZED BY AD VALOREM TAXES. THEY'RE NOT THEY'RE NOT SECURITIZED BY THE DIRECT UTILITY SYSTEM OF THE CITY. AND BECAUSE OF THEIR

[00:25:03]

ANYTHING YOU GUYS MAY HAVE. CHRIS. COUNCILMAN DARIO THANK YOU MAYOR. SO HOW EXACTLY DOES THE FUNDS THAT COME FROM THESE BONDS, HOW DOES IT WORK ITS WAY BACK TO US SO WE CAN USE IT FOR A DIFFERENT PROJECTS? SURE. SO WHENEVER YOU GO OUT AND ISSUE THOSE BONDS YOU'RE YOU'RE SELLING THOSE BONDS TO THE INVESTORS. AND THEN AT CLOSING, THAT MONEY IS AGGREGATED AND WIRED TO THE CITY. SO JUST LIKE IF YOU WERE TO GO TO THE BANK TO TAKE OUT A LOAN AND AT THE TIME OF CLOSING, THAT LOAN IS USED TO HELP US PUT DOWN THE PROCEEDS TO BUY THAT HOUSE. THE SAME IS TRUE HERE. WE GO OUT TO THE MARKET, WE SELL THESE BONDS. THOSE INVESTORS ARE THEN CONTRIBUTING THAT MONEY TO THE CITY'S PROJECT ACCOUNT. HOW LONG A PROCESS IS THAT? YOU GO AHEAD. I'D SAY IT'S IMMEDIATE IN TERMS OF, OH YEAH, THE MONEY. WHEN THE MONEY IS WIRED. BEFORE WE CLOSE, LITERALLY, WE HAVE TO GET CONFIRMATION THAT THE MONEY HAS BEEN WIRED. AND THEN AFTER THAT, I'M POINTING HERE BECAUSE I KNOW HE KNOWS. AFTER THAT, I THINK I GUESS IT'S UP TO YOU WHEN YOU PUT THEM IN. I DON'T KNOW IF Y'ALL HAVE ONE ACCOUNT OR SPECIFIC ACCOUNTS, BUT I'M SURE YOU HAVE A PROJECT ACCOUNT. OKAY. AND SO WHEN WE WHEN WE COME TO YOU, YOUR CITY MANAGER, ASSISTANT CITY MANAGER HAS TALKED ABOUT WHAT THOSE FUNDS WILL BE USED FOR. AND LITERALLY THEY'LL BE DEPLOYED NOW WHEN WE WHEN WE COME AND TELL YOU GUYS, HEY, WE'RE WE ARE COMING TO YOU TO HAVE APPROVAL FOR THE SALE OF YOUR BONDS ON, ON A GIVEN DAY. BECAUSE OF THAT TEXAS ATTORNEY GENERAL REVIEW PROCESS, IT GENERALLY TAKES 20 TO 30 DAYS AFTER THAT, BEFORE THE MONEY IS DEPOSITED INTO THE CITY'S BANK ACCOUNT. BECAUSE YOU GOT TO GO THROUGH THAT REVIEW PROCESS BEFORE YOU CLOSE. BUT ONCE THE AG HAS GIVEN THAT APPROVAL, THEN WE CLOSE. AND WHEN WE CLOSE, ALL OF THE MONEY IS DELIVERED TO THE CITY IN THAT IN THAT TIME FRAME. SO FROM THE TIME WE SELL BONDS TO THE TIME THAT THE MONEY, ALL OF THE MONEY HITS, THE CITY'S BANK IS BETWEEN 20 AND 30 DAYS.

OKAY. HAVE YOU EVER DO THEY HAS THE AG EVER NOT APPROVED THEM? SURE, SURE. REALLY? OH, YES. OH YEAH. YEAH. I MEAN, THERE ARE THERE ARE CERTAIN SITUATIONS WHERE THE, THE LAW MAY HAVE CHANGED AND THE AG DECIDES, WELL, EVEN THOUGH YOU STARTED THE PROCESS, YOU KNOW, BEFORE THINGS HAVE CHANGED AND YOU NEED TO, YOU KNOW, LET'S START OVER AGAIN. THERE MAY BE SOME INCORRECT INFORMATION IN A DOCUMENT OR TWO. SO THERE'S EVERY NOW AND THEN BUT NOT, NOT IT'S NOT LIKELY. NOT TYPICAL. BUT WE'VE SEEN IT. THEIR REVIEW PROCESS IS I THINK ON OUR END, THEIR REVIEW PROCESS HAS GOTTEN MORE AND MORE THOROUGH. AND QUITE FRANKLY, THEY'RE LOOKING FOR FOOT FAULTS. THEY'RE LOOKING FOR OFTENTIMES THEY'RE LOOKING FOR ANY LITTLE THING IN A DOCUMENT TO SAY, NOPE, YOU GOT TO GO BACK. YEAH. BUT THAT'S WHY YOU HIRE A GOOD PROFESSIONAL TEAM TO MANAGE THAT PROCESS AND MAKE SURE THE I'S ARE DOTTED AND T'S ARE CROSSED. THAT'S WHAT YOU GUYS DO. THAT'S WHAT WE DO. YES, SIR. OKAY. THANK YOU. COUNCILMAN HILLIARD. SO IS THE INTEREST RATE LOCKED IN? WHAT IF OVER THE COURSE OF THE BOND, WE OUR OUR CREDIT RATING DROPS? YEAH. YOU KNOW, HOW DOES THAT WORK? EVERY EVERY BOND THAT WE HAVE SOLD HERE AT THE CITY OF BEAUMONT IS A FIXED RATE. HAS BEEN IN A FIXED RATE OF INTEREST MODE. YEAH. WE TYPICALLY DO NOT SELL VARIABLE RATE BONDS. THERE ARE SOME INSTANCES WHERE IT MAKES SENSE, BUT THAT IS NOT SOME INSTRUMENT THAT WE'VE DEPLOYED HERE AT THE CITY OF BEAUMONT. THEY'RE LOCKED IN FOR THE LIFE.

SO IF THE TO YOUR POINT, IF THE IF THE CREDIT RATING GOES DOWN DOESN'T MATTER AS IT RELATES TO THOSE BONDS, THEIR INTEREST RATE IS FIXED. COUNCILMAN TURNER. WELL, THE WAY WE PREPARE OUR STREETS AND HANDLE OUR STREETS, CAN YOU KIND OF GO A LITTLE BIT IN DEPTH OF THE TYPE OF BOND WE USE FOR OUR STREETS AND HISTORICALLY IN THE CITY OF BEAUMONT? WHY? HISTORICALLY OVER THE I WOULD SAY OVER THE COURSE OF I'M JUST SPEAKING BASICALLY OVER THE COURSE OF PAST 10 OR 15 YEARS, WHEN YOU GUYS HAVE ISSUED BONDS FOR STREET PURPOSES, YOU'VE DONE THAT THROUGH THE ISSUANCE OF CERTIFICATES OF OBLIGATION. YES, SIR. WHENEVER YOU GUYS HAVE ISSUED THOSE CEOS, PRIMARILY THOSE PROCEEDS HAVE BEEN USED FOR STREET AND VARIOUS STREET IMPROVEMENTS ACROSS THE

[00:30:04]

COUNCILMAN WILLIAMS, IS THERE LIKE A LIMIT TO HOW OFTEN A CITY CAN GO OUT FOR GENERAL OBLIGATION BONDS OR IT'S REALLY NOT A LIMIT ON HOW OFTEN YOU CAN GO OUT FOR GENERAL OBLIGATION.

IF YOU'RE TALKING ABOUT LIKE A VOTED. YEAH. LIKE IF SOMETHING WENT OUT. I MEAN, I DON'T KNOW IF YOU IF YOU HAD TO WAIT X AMOUNT OF TIME BEFORE YOU DID IT AGAIN OR IS IT JUST YOU JUST GO THROUGH THE PROCESS, YOU KNOW, OBVIOUSLY YOU'VE GOT YOUR BOND ELECTION DATES. THE STATE ONLY ALLOWS YOU TO GO OUT FOR AN ELECTION IN NOVEMBER AND IN MAY, SO THAT YOU'RE BOUND BY THAT.

BUT OTHER THAN THAT, YOU'RE REALLY NOT. YOU'RE REALLY NOT BOUND BY HOW OFTEN YOU CAN GO OUT. RIGHT? IT'S REALLY UP TO THE CITY. AND I'D SAY CITY MANAGEMENT IN TERMS OF HOW OFTEN THEY THINK THEY THEY WANT TO GO OUT. TYPICALLY, IF YOU GO OUT FOR A BOND, IT'S GOING TO BE FOR A LOT OF MONEY. AND SO YOU'LL SPEND IT OVER 3 TO 5 YEARS. IT'S TYPICAL. RIGHT. AND SO I SEE MOST 3 TO 5 YEAR BOND ELECTIONS. FOR GENERAL OBLIGATION BONDS. OBLIGATION. CORRECT. THAT'S CORRECT. FOR GENERAL OBLIGATION BONDS. RIGHT NOW THIS IS THIS IS A LITTLE BIT MAYBE MORE TO YOUR POINT, LET'S SAY IF YOU WERE TO DO A GENERAL OBLIGATION BOND AND IT DID NOT PASS, BUT THEN YOU SAID, MAN, WE REALLY STILL HAVE TO DO THAT PROJECT, YOU COULDN'T THEN COME BACK AND ISSUE CERTIFICATES OF OBLIGATION FOR THAT PROJECT FOR A PERIOD OF THREE YEARS. OKAY. SO. YES, CITY MANAGER QUESTION IN REGARDS TO THE NEW LEGISLATION, WILL THAT GO ON THE BALLOT IN NOVEMBER OR DOES IT GO INTO EFFECT IMMEDIATELY, SEPTEMBER 1ST. IT WILL GO INTO EFFECT SEPTEMBER 1ST. RIGHT. OKAY. ALSO, COULD YOU KIND OF SHARE WITH COUNCIL ABOUT REFINANCING? COUNCIL MEMBER HILLIARD ASKED ABOUT FIXED RATES, BUT BECAUSE WE REGULARLY REVIEW OUR PORTFOLIO TO SEE WHERE WE CAN SAVE DOLLARS TO REFINANCE, YOU WANT TO TOUCH ON THAT? CERTAINLY. SO IF WE WERE TO GO BACK AND LOOK AT THE OUTSTANDING BOND PORTFOLIO OF THE CITY, OF THE CITY OF BEAUMONT, MANY OF THE OUTSTANDING BOND SERIES OF THE CITY OF BEAUMONT SAY SUCH AND SUCH REFUNDING BONDS, SUCH A UTILITY SYSTEM REFUNDING BOND, GEO REFUNDING BOND. AND THE REASON FOR THAT IS ANYTIME THAT THERE IS AN OPPORTUNITY TO GO OUT AND FIND A LOWER INTEREST RATE ON THOSE BONDS, WE COME TO THE CITY AND LOOK FOR YOU GUYS TO TAKE ADVANTAGE OF THOSE LOWER INTEREST RATES. AND YOU GUYS HAVE ALWAYS BEEN REALLY GOOD ABOUT UNDERSTANDING THOSE

[00:35:04]

IN FACT. IN FACT, WE PLAN TO BE BACK BEFORE THE CITY COUNCIL THIS SUMMER TO HAVE YOU GUYS APPROVE A REFINANCING OF CERTAIN BONDS IN THE UTILITY SYSTEM. THERE ARE SOME BONDS IN THE WATERWORKS AND SEWER SYSTEM DEBT THAT WE'VE REACHED THE CALL DATE ON, AND HAVE AN INTEREST RATE WHERE WE BELIEVE WE CAN LOWER IT AND HELP SAVE, SAVE A LITTLE BIT OF MONEY BY REFINANCING.

COUNCILMAN TURNER, AS WE DO THESE BONDS. AND, AND WE KIND OF SEE SOME OF THIS DEBT FALL OFF, DO WE KIND OF TRACK THE DEBT THAT'S FALLING OFF COMPARISON TO WHAT WE CAN ACTUALLY ADD? CAN YOU KIND OF EXPLAIN THAT PROCES? BECAUSE PRIOR TO THIS MEETING, THAT QUESTION CAME UP. AND I JUST WANTED TO KIND OF EXPLAIN. SURE. WE'RE ALWAYS LOOKING AT THE AGGREGATE DEBT SERVICE PAYMENTS OF THE CITY'S DEBT IN EACH SYSTEM. AND WHEN I SAY EACH SYSTEM, YOU GOT THE AD VALOREM TAX SECURED SYSTEM BONDS. AND AT THIS POINT, THE UTILITY SYSTEM SECURED BONDS. WE'RE ALWAYS CHECKING TRACKING THE ANNUAL DEBT PAYMENTS ON THAT. AND WHENEVER, WHENEVER THERE'S ONE THAT FALLS OFF. WE'RE LOOKING WE WOULD FILL THAT IN WITH YOUR NEW DEBT TO TRY TO HELP MINIMIZE THE TAX RATE IMPACT OR UTILITY RATE IMPACT BASED ON HOW WE STRUCTURE THE DEBT AND DEBT INSTRUMENTS FALLING OFF. PERFECT. AND LASTLY, MAYOR, MR. MANAGER, WE'VE BEEN ABLE TO ACCOMPLISH THE OLD BONDS. AND EVERY YEAR. AND I KNOW YOU'VE ONLY BEEN HERE TWO YEARS, BUT SINCE I'VE BEEN ON COUNCIL EVERY YEAR WE'VE BEEN ABLE TO ACTUALLY LOWER THE TAX RATE. CORRECT. I JUST WANT TO MAKE SURE I CAN STATE THAT ON THE RECORD. IT IS ACCURATE. I DO KNOW THE TAX RATE OVER THE LAST 5 OR 6. AND YOU'RE GOING TO THERE'S GOING TO BE A SLIDE ON THAT LATER. THAT'S GOING TO SHOW YOU THE HISTORY OF THE TAX RATE. AND IT HAS REDUCED OVER THE LAST FIVE, SIX, SEVEN YEARS, WHATEVER THAT TIME. AND MY REASON FOR STATING THAT BECAUSE THERE'S A LOT OF CITIZENS AND MISINFORMATION OUT THERE THAT THE CITY OF BEAUMONT RAISES THE TAX RATE. AND SINCE I'VE BEEN ON COUNCIL, WE'VE LOWERED IT EVERY YEAR, AND IT'S BEEN FOUR YEARS WHILE TAKING ON SOME OF THESE BONDS. CORRECT. ALL RIGHT. WELL, THANK YOU ALL VERY MUCH. THANK YOU ALL VERY MUCH. I APPRECIATE THE OPPORTUNITY TO WORK WITH YOU GUYS. LOOK FORWARD TO SEEING YOU ALL AGAIN THIS SUMMER. THANK

[2. Strategic Plan Update]

THANKS, MILES. YOU'RE UP. OKAY. OKAY. GOOD MORNING, MAYOR AND COUNCIL. I WENT THROUGH A LONG PROCESS. SO Y'ALL FINALLY SEATED. SO THAT'S GOOD. SO FOR STAFF AND EVERYBODY INVOLVED I'LL BE DOING AN OVERVIEW OF THE STRATEGIC PLAN AND JUST KIND OF WALK YOU THROUGH KIND OF THE PROCESS OF IT. AND THEN BASICALLY GIVE YOU JUST SOME GENERAL UPDATES. IF YOU DON'T ALREADY HAVE IT. YOU SHOULD HAVE IS THE STRATEGIC PLAN IN FRONT OF YOU. BUT YOU HAVE A LEADER'S GUIDE. SO I'LL WALK YOU THROUGH KIND OF WHAT WENT THROUGH THAT PROCESS. WE STARTED THAT PROCESS. AND AUGUST OF 2023. AND SO THE COUNCIL THEN AT THAT POINT IN TIME THEY MET WITH A CONSULTANT, THEY DID A SWOT ANALYSIS OF THE CITY. THEY SAT DOWN FOR MANY SESSIONS, JUST GOING THROUGH EACH DEPARTMENT AND TALKING ABOUT REALLY, IN A SENSE, LIKE A WISH LIST. WHAT DO YOU WANT TO SEE THE CITY IN FIVE YEARS, TEN YEARS, 15 YEARS? AND THEN IT GOT YOU TO WHAT WE CALL STRATEGIC PLANNING. PREVIOUSLY FROM THE PRIVATE SECTOR, PEOPLE JUST DID PLANNING IN SO MANY DIFFERENT WAYS. IT REALLY JUST KIND OF DEPENDS ON THE SIZE OF YOUR ORGANIZATION. BEAUMONT

[00:40:02]

IT'S NOT A SPRINT. I'VE COMPLETED FIVE MARATHONS, SO I KNOW IT TAKES A LOT OF TIME TO PREPARE FOR A MARATHON AND GO THROUGH THAT WHOLE PROCESS. AND THAT'S WHAT Y'ALL DID. Y'ALL DID THIS WHOLE PROCESS. AND TYPICALLY THE YEARS ARE FROM 3 TO 5. SO RIGHT NOW, AS YOU CAN SEE ON THAT PRESENTATION, YOU'RE ONLY A YEAR AND NINE MONTHS IN TO THIS FIRST FIVE YEAR PHASE OF THE STRATEGIC PLANNING. YOU KNOW, SOME OF YOUR MAIN DOCUMENTS AS COUNCIL MEMBERS AND MAYORS, YOU KNOW YOUR CHARTER. IT YOUR CHARTER GIVES YOU YOUR AUTHORITY AS YOU GO THROUGH THE BUDGET PROCESS TO LET YOU KNOW WHAT YOU CAN DO WITH YOUR RESOURCES. AND YOUR STRATEGIC PLAN IS MORE OF LIKE THE ONE DOCUMENT THAT REALLY TELLS US ABOUT YOUR MINDSET, WHAT YOUR OUTLOOK, HOW YOU WANT TO SEE THE CITY. IT'S ONE OF THE FEW DOCUMENTS THAT Y'ALL ARE, YOU KNOW, YOU SHARE. SO WHEN WE READ THIS DOCUMENT, YOU KNOW, WE IMAGINE THAT WE'RE HEARING THE THOUGHTS OF OUR MAYOR AND CITY COUNCIL MEMBERS. SO YOU START THIS PROCESS AND YOU COME UP WITH A MISSION. AND THE MISSION IS BEAUMONT CITY GOVERNMENT IS TO PROVIDE EXCEPTIONAL MUNICIPAL SERVICES. YOU PLAN FOR THE FUTURE IN A FINANCIALLY RESPONSIBLE MANNER, OPEN, TRANSPARENT, ETHICAL. AND, YOU KNOW, HIGH PERFORMING CITY TEAM IS A BIG THING. YOU WANT TO PROVIDE OUTSTANDING CUSTOMER SERVICE AND YOU INVOLVE THE CITIZENS. AND SO THIS IS THE THINGS THAT YOU GUYS CAME UP WITH OR DURING THAT TIME FRAME. AND AS WE GO THROUGH THIS PROCESS, WE'RE GOING TO TRY TO LISTEN TO YOUR PRIORITIES AND SEE IF ANY OF THIS CHANGES. YOU KNOW, WE'RE GOING TO COME BACK AND DO A REFRESHER ON THE STRATEGIC PLAN AND PROBABLY Q3, Q4 OF THIS YEAR. SO LATER PART OF THE YEAR, YOU'LL GO TO THIS. SO ONCE YOU GOT YOUR MISSION IN PLACE AND THEN YOU LOOK AT THE VISION. SO IN 2038 THIS IS WHAT Y'ALL ENVISION. IT'S LIKE IF YOU INVITED SOMEBODY TO YOUR CITY, THESE ARE THE KIND OF THINGS YOU WANT TO TALK ABOUT. OH MAN. IT'S A BEAUTIFUL COMMUNITY. IT'S SAFE AS A VIBRANT DOWNTOWN, THE RIVERFRONT, GREAT NEIGHBORHOODS.

IT HAS OLD AND NEW NEIGHBORHOODS, CONNECTIVITY TO THE WORLD, GREAT OPPORTUNITIES.

YOU KNOW, THE RESIDENTS AND BUSINESSES HAVE COMMUNITY. THEY HAVE UNITY AND PRIDE. YOU KNOW, THESE ARE THE KIND OF THESE ARE REALLY THE STATEMENTS THAT YOU WANT TO BE SAID ABOUT BEAUMONT.

THIS IS WHAT Y'ALL SAID WHEN IT CAME TO 2038, AND YOU WANT IT TO BE A SPECIAL PLACE TO LIVE. AND THEN YOU DRILL DOWN A LITTLE BIT MORE AND YOU SAY, OKAY, HEY, IN FIVE YEARS, WE WANT IT TO BE A GREAT PLACE TO LIVE FINANCIALLY. SOUND CITY, PROVIDING EXCELLENT SERVICES TO THE COMMUNITY. YOU STILL WANT IT, THE VIBRANT DOWNTOWN RIVERFRONT. YOU WANT IT LIVABLE NEIGHBORHOODS, OLD AND NEW. YOU WANT TO UPGRADE IT. CITY FACILITIES AND INFRASTRUCTURE THROUGH INVESTMENTS. SO ALTHOUGH THIS DOCUMENT IS GOING TO HIGHLIGHT SOME PROJECTS AS I GO THROUGH THEM, THIS PARTICULAR STRATEGIC PLAN IS REALLY IN DETAIL AND YOU REALLY SHOULD BE READING IT AND YOU SHOULD BE COMMUNICATING. IT'S YOUR DOCUMENT. IT'S THE DOCUMENT THAT WE GET TO UNDERSTAND YOUR MINDSET, YOUR BIG PRIORITIES. IT'S REALLY THE SHARED UNIFIED DOCUMENT THAT YOU GUYS HAVE, ONE OF THE FEW. AND SO KEEP THAT IN MIND AS WE'RE GOING THROUGH THIS PARTICULAR PROCESS TO KIND OF HEAR SOME OF THE UPDATES. SO NEXT SLIDE. ALL RIGHT. SO ONCE YOU GET TO THOSE FIVE GOALS, WHAT WE DID AS A TEAM IS WE WORKED WITH A CONSULTANT. AND IT BASICALLY CAME UP WITH ACTIONS TO MEET THOSE GOALS. SO IF YOU WANT IT TO BE YOU WANT TO SAY BEAUMONT IS A GREAT PLACE TO LIVE. WHAT ARE SOME ACTIONS THAT ALIGN WITH IT BEING A GREAT PLACE TO LIVE? YOU KNOW, IF YOU WAS TELLING YOUR FAMILY MEMBER IF THEY WERE MOVING TO A DIFFERENT CITY, IT'S A GREAT PLACE TO LIVE. YOU KNOW, THESE ARE SOME OF THE ACTIONS THAT WE DETERMINE AS A TEAM TO COME TOGETHER IN WHAT WOULD MAKE IT A GREAT PLACE TO LIVE. SO ACTION ONE IS THE ECONOMIC

[00:45:05]

BEAUMONT IS A GREAT PLACE TO LIVE. THAT'S WHAT YOU WANTED US TO KNOW AND YOU WANT THE COMMUNITY TO KNOW. AND SO WE WORKED TOGETHER AND THIS IS ONE OF THOSE ACTIONS. NEXT SLIDE.

THE NEXT ONE WAS A WATER PARK FEASIBILITY STUDY. THE DISCUSSION ABOUT A WATER PARK HAD BEEN GOING ON FOR YEARS. AND SO ONE OF THE BIGGER THINGS WAS LOOKING AT A FEASIBILITY STUDY.

AND AS YOU SEE, IT'S IN THE CIP, AS YOU HAVE ALREADY HAD A PRESENTATION FROM THE CIP. IT'S A DESIGN PHASE FOR 2028. AND THEN FY 29 IS LOOKING AT THE CONSTRUCTION. OBVIOUSLY THESE THINGS, AS YOU SEE ON THIS PARTICULAR SLIDE, IT SAYS THE NEXT STEP, PRIMARY DECISION MAKER. THIS IS A CITY COUNCIL THING. SO YOU GUYS WOULD MAKE A DECISION IF THIS IS SOMETHING THAT YOU WANT, YOU DON'T WANT WHEN YOU WANT IT AND WHAT TYPE OF PROCESS YOU WANT IT TO LOOK LIKE. OR IS THERE ANY TYPE OF PARTNERSHIP. SO LIKE I SAID AGAIN, YOU TALKED ABOUT THAT BEAUMONT IS A GREAT PLACE TO LIVE. AND THEN WE SAID, OKAY, THIS IS ONE OF THE ACTIONS THAT CAN ALIGN WITH THAT NEXT SLIDE. OBVIOUSLY, YOU KNOW ABOUT THE REAL TIME CRIME CENTER. THERE ARE A LOT OF NEIGHBORHOOD ASSOCIATIONS. THEY HAVE EXPANDED REALLY THEIR REACH TO DO MORE REGIONAL CONNECTIVITY. THEY DO A LOT OF TRAININGS FOR THE OFFICERS. I THINK WE'RE BECOMING I MEAN, WE'VE WON SOME AWARDS THROUGH DIFFERENT RECENT CONFERENCES BECAUSE OF THIS TYPE OF TECHNOLOGY, AND IT'S REALLY PROACTIVE IN PUTTING US AHEAD OF THE CURVE AND CRIME PREVENTION, BECAUSE THAT WAS A BIG THING FOR YOU GUYS IS IF IT'S GOING TO BE A GREAT PLACE TO LIVE, IT NEEDS TO BE A SAFE PLACE TO LIVE. AND SO REAL TIME CRIME CENTER ALIGNS WITH THAT. THEY JUST HAD FOUR NEW ANALYSTS HIRED, AND OBVIOUSLY THEY'RE PROVIDING DAILY COVERAGE. THEY HAVE NUMEROUS INVESTIGATIONS THAT YOU PROBABLY HAVE HEARD ABOUT THROUGH SOCIAL MEDIA ON THE NEWS ON HOW THIS WHETHER IT'S THROUGH THE LICENSE PLATE READER, GETTING NEIGHBORHOODS ENGAGED.

AND I THINK, YOU KNOW, COUNCILMAN, I SAW YOU AT THE BARRINGTON HEIGHTS HOA MEETING YESTERDAY, AND THEY WERE ALL INTO THIS PARTICULAR IDEA BECAUSE IT MAKES THEM FEEL SAFE.

RIGHT? THESE COMMUNITIES WANT BUY IN INTO THIS PARTICULAR SYSTEM. AND SO THE REAL TIME CRIME CENTER, I THINK IS, IS DOING A GREAT JOB IN THE POLICE DEPARTMENT ALWAYS, YOU KNOW, DOING A GREAT JOB. SO THIS IS A PART OF THAT GOAL. ONE, IT'S A MAKING IT A GREAT PLACE TO LIVE.

NEXT SLIDE. CITYWIDE BEAUTIFICATION. WE'VE DONE WAY MORE TREE PLANTING, WAY MORE STUFF THAT YOU REALLY DON'T SEE. SOMETIMES WHEN IT COMES TO THE DIFFERENT OPTIONS AND RECOGNITION THAT WE'VE HAD THROUGHOUT THE YEARS, THERE'S BEEN A LOT OF PARTNERSHIPS WITH COMPANIES LIKE HEB, COCA-COLA, THE MAGNOLIA GROUP AND THE GARDEN CLUBS AND BEAUTIFYING THE PARKS AND BEING MORE OPEN TO DIFFERENT TYPE OF PARTNERSHIPS THROUGHOUT THE YEAR. SO THIS IS A BIG THING AS FAR AS TREE PLANTING, BECAUSE YOU GUYS SAID, HEY, IF IT'S A GREAT PLACE TO LIVE, IT NEEDS TO LOOK LIKE A GREAT PLACE TO LIVE. AND SO CITYWIDE BEAUTIFICATION HEADED UP BY MR. KENNETH HAS BEEN A BIG THING. THEY'VE BEEN HEAVY ABOUT THE REMOVAL OF THE TREES BECAUSE THAT'S BEEN A BIG ISSUE AS FAR AS DEAD TREES AND THINGS LIKE THAT. SO I'LL GO TO THE NEXT SLIDE. AND AT ANY POINT, IF YOU HAVE ANY QUESTIONS, PLEASE JUST FEEL FREE TO ASK ME A QUESTION.

IF NOT, I'LL TRY TO GO IN THIS SAME FORMAT AND MAY SPEED IT UP A LITTLE BIT. THIS INDOOR SPORTS SPACE STUDY IS KIND OF REALLY CONNECTED TO THAT RECREATIONAL CENTER OR SPORTS COMPLEX IS THE BETTER WAY TO SAY IT THAT THAT HAS BEEN DISCUSSED HERE LATELY. THIS WAS A PREVIOUS DISCUSSION ON THE CITY ABOUT A STUDY TO SEE WHAT THE FEASIBILITY WOULD BE, AND IT'S BEEN BROUGHT BEFORE THE BOND COMMITTEE. SO OBVIOUSLY, YOU KNOW, THERE'S A BOND COMMITTEE EVALUATING PROJECTS TO BRING A RECOMMENDATION BACK TO COUNCIL IN A FUTURE DATE. SO THIS IS THAT PARTICULAR PROJECT.

CITY COUNCIL WOULD MAKE AN ULTIMATE DECISION ON SOMETHING LIKE THIS. NEXT SLIDE. LITTER

[00:50:04]

YOU HAVE STAFF, TESSA. LINFOOT FROM CODE ENFORCEMENT. FERNANDO WITH SOLID WASTE. MR. JUNE ELLIS, HIS GROUP UP OUR COMMUNICATION DEPARTMENT PUSHED THOSE THINGS UP. MR. KENNETH AND MR. FERNANDO FROM SOLID WASTE. SO YOU KNOW YOU HAVE AN INTERNAL COMMITTEE AND THEY'RE LOOKING AT OPPORTUNITIES TO MAKE SURE THAT WE WANT TO HELP VOLUNTEERS WHO WANT TO CLEAN IT AND WE CLEAN OURSELVES. SO WE'VE DONE THAT TO KIND OF INCREASE PARTNERSHIPS AND STUFF LIKE THAT. WE ALSO WORK WITH THE SCHOOL DISTRICT AND DIFFERENT COMMUNITY PARTNERS, AND WE LOOK FOR Y'ALL TO SHOW UP TO THOSE KIND OF THINGS TOO. THAT'S THAT'S BIG FOR YOUR PARTICULAR AREA. THEY LIKE TO SEE YOU OUT THERE CLEANING, AND SOMETIMES IT MEANS A LOT TO THEM. NEXT. NEXT SLIDE.

COMMUNITY MENTAL HEALTH. THIS BASICALLY STARTED AS JUST AN ITEM IN THE STRATEGIC PLAN. WE STARTED MEETING WITH STAKEHOLDERS. WE MET WITH JEFFERSON COUNTY. WE MET WITH LAMAR UNIVERSITY. WE MET WITH HOSPITALS. I MEAN, I CAN'T THINK OF IT. WE'VE MET WITH REGENIA ROGERS, WE MET WITH KIM PHELAN, WE HAD DADE PHELAN OFFICE IN THERE, CHRISTIAN MANUAL, EVERYBODY THAT INTERACTS WITH THE MENTAL HEALTH COMMUNITY WE INTERACTED WITH. I EVEN DID A TOUR TO SEE THE MENTAL HEALTH COURT BECAUSE MAINLY THIS IS OVERSEEN BY JEFFERSON, BY THE COUNTY. AND SO WE JUST IDENTIFIED WHAT ARE SOME TOP FIVE THINGS THAT WE CAN WORK ON AS A GROUP TOGETHER. WE BASICALLY PLAYED A COMMUNITY ORGANIZER TYPE ROLE, AND THEY IDENTIFIED SOME THINGS. BUT THE BIGGEST THING THAT CAME FROM THIS PARTICULAR SESSION IS THAT FRED JACKSON AT THE COUNTY'S OFFICE, THEY IDENTIFIED A RESOURCE THAT WE WERE ABLE TO BRING TO THEM THAT REALLY CAN HELP THEM. ON CONNECTING RESIDENTS TO MENTAL HEALTH SERVICES. AND I'M EXCITED TO SAY THAT THEY'LL BE ACTUALLY HAVING A WORK SESSION WITH THIS PARTICULAR GROUP JUNE THE 17TH. AND SO WE DO THIS WORK TO TRY TO ORGANIZE AND FIND SOLUTIONS.

OBVIOUSLY, YOU KNOW, COMMUNITY MENTAL HEALTH CAN MEAN SO MANY DIFFERENT THINGS TO SO MANY PEOPLE. BUT WHEN YOU BRING THAT MANY PARTNERS TOGETHER, YOU KNOW, WHAT'S THE NEXT STEP? AND I THINK WE'VE PROVIDED OUR NEXT ACTIONABLE STEP. SO NEXT SLIDE AND MISS YOU. LET ME KNOW IF I'M TALKING TOO MUCH. JUST KIND OF GIVE ME A HEAD NOD AND THEN I'LL KIND OF MOVE FASTER. OUR NEXT ONE IS EVENTS REVIEW AND MISS EMILY WILLER IS OVER THIS PARTICULAR PROJECT. THEY THEY'VE REALLY JUST TAKEN EVENTS AND MODERNIZED THEM, ADVANCED THEM INCLUDED MORE FAMILIES, INCLUDED MORE VENDORS. I MEAN, THERE ARE DIFFERENT THINGS THAT THEY'VE DONE. SO THIS IS THIS IS MORE OF AN INTERNAL BEST PRACTICE THAT THEY HAVE DONE YEAR OVER YEAR. REALLY. IT'S MORE THAN YEAR OVER YEAR EVENT FROM EVENT BECAUSE THEY HAVE SO MANY EVENTS. I CAN'T QUOTE THE NUMBER, BUT I THINK IT'S 500 OR MORE. IS THAT THE CORRECT NUMBER? EMILY 500. YEAH. SHE SAID I WAS CLOSE ENOUGH. SO THAT'S A BIG THING FOR THE EVENTS REVIEW. AND OBVIOUSLY YOU GUYS GET A CHANCE TO GO TO THOSE EVENTS. THAT WAS A HUGE FOR FAMILIES. AND WHEN YOU GO TO THE EVENT ONE YEAR AND THEN YOU SEE AN OPPORTUNITY FOR YOUR KIDS TO GO NEXT YEAR AND ENGAGE AND INTERACT, THOSE ARE BIG FOR THE CITY. AND SO SOMETIMES THOSE ARE MORALE BOOSTERS FOR CITIZENS. LIKE THEY GET A CHANCE TO GO OUT THERE AND ENJOY IT. I KNOW I GOT LITTLE KIDS SO I CAN SEE THE FRUIT OF THOSE DIFFERENT CHANGES THAT THEY MAKE IN ■DIFFERENT EVENTS. NEXT SLIDE. ALL RIGHT. YOU KNOW THIS ONE DOGS OUT. THEY OUT AT ROGERS PARK HAVING FUN. SO THIS PROJECT IS SHOULD BE A ONE SENTENCE. IT'S COMPLETE. IT WAS A BIG TOPIC AND WE GOT IT COMPLETED. SO THAT'S A BIG THING. ROGERS PARK IS A GREAT PLACE FOR THIS AREA. AND MISTER KENNY SMITH IS THE FACILITIES DIRECTOR. NEXT SLIDE OKAY. SO OBVIOUSLY BIG TALKS ABOUT THE FIRE AND EMS AND THEN SO I'LL TRY MY BEST TO KIND OF GIVE YOU AN OVERVIEW OF THIS PARTICULAR GOAL. BECAUSE THIS IS DIFFERENT THAN A GREAT PLACE TO LIVE. THIS IS THE NEXT GOAL WHICH YOU SAID AS A COUNCIL THAT YOU WANTED BEAUMONT TO, YOU KNOW, YOU WANT TO MAKE SURE THAT BEAUMONT IS A FINANCIALLY SOUND CITY PROVIDING EXCELLENT SERVICES TO THE COMMUNITY. THAT'S WHAT YOU WANTED TO SAY. AND SO A PART OF THAT IS FIRE AND EMS AND THE 911 SOFTWARE SYSTEM THEY HAVE, INSTALLATION AND CONFIGURATION IS UNDERWAY BY IT. OBVIOUSLY, THEY HAVE DONE MORE TO REALLY MODERNIZE OUR APPROACH TO SOLVING PROBLEMS. CHIEF WHITE HAS BROUGHT SOME REVOLUTIONARY TYPE IDEAS WITH THE RIGHT SITE

[00:55:06]

SO I'LL MOVE TO THE NEXT SLIDE. THERE'S NO QUESTIONS OR COMMENTS. CITYWIDE STAFF REVIEW IS A HUGE THING. THE BIGGEST THING FROM THIS IS OBVIOUSLY WE'RE GOING THROUGH BUDGET SEASON RIGHT NOW. SO OUR HR DIRECTOR, MISS CARMEN WILLIAMS, IS WORKING WITH OUR CITY MANAGER TO IDENTIFY, YOU KNOW, FOR THE MAIN PART, YOU KNOW, WHERE WE WILL BE ON STAFFING. DO WE NEED TO LOOK AT REPURPOSING VERSUS CREATING NEW ROLES. AND YOU KNOW, THEY WORK OFTEN YEAR ROUND GUIDANCE FOR BOTH PLANNED AND UNPLANNED UNPLANNED STAFFING NEEDS, OBVIOUSLY WITH RETIREMENTS AND THINGS LIKE THAT, WE'RE GOING TO HELP DEPARTMENTS TO JUSTIFY NEW POSITIONS, REQUESTS BASED ON DATA DRIVEN INSIGHTS. I KNOW A BIG THING FOR COUNCILMAN TURNER WAS TO MAKE SURE THAT WE'RE, YOU KNOW, WHERE WE'RE AT ON THE STATEWIDE AVERAGE. SO THEY USE THESE DATA THINGS. MISS CORMAN BRINGS A WEALTH OF KNOWLEDGE AND A HUGE NETWORK TO MAKING SURE THAT WE'RE IMPLEMENTING BEST PRACTICES AND THAT, YOU KNOW, WE'RE PREPARING FOR TODAY AND TOMORROW. SO THIS IS ONGOING. WE'LL MOVE TO THE NEXT SLIDE. OUR CITY REBRANDING. THIS IS LED BY OUR COMMUNICATIONS DIRECTOR, MISS TRACY KENIG. AND THEY ACTUALLY JUST WON AN AWARD, THIRD PLACE FOR CITIES OVER 75,000 FOR STATE OF THE CITY. SO YOU KNOW, SOMETIMES, YOU KNOW, WE FOCUSED IN ON OUR CITY, BUT AT THE STATE LEVEL, THEY'RE GETTING RECOGNIZED. AND THAT'S A BIG THING FOR US AS A CITY. YOU KNOW, HOW DO WE COMPARE AT THE STATE LEVEL AND SOMETIMES EVEN AT THE NATIONAL LEVEL. SO THEY HAVE A TIMELINE OF FY 26 TO 27 FOR CITY LOGO AND BRANDING.

REFRESH IS PLANNED FOR CONSIDERATION. OBVIOUSLY, YOU'VE PROBABLY SEEN SOME SURVEYS OUT THERE TO TRY TO GET FEEDBACK ON MAYBE A TAGLINE, BECAUSE YOUR BRANDING IS EVERYTHING FOR A CITY. NEXT SLIDE. I THINK THEY HAD A FIRST PLACE IN SOMETHING TO. YEAH, THEY SAID I HAVE. IT WAS THE FIRST PLACE FOR SOMETHING ELSE. I THINK IT WAS THE PODCAST AND I HAVE IT ON THAT. YEAH, THE PARK AND I HAVE IT ON THAT NEXT SLIDE COMING UP. OH, I FORGOT MY WATER. GIVE ME ONE SECOND. THAT'S GOOD OKAY. SO ACTION FOR CITY ORGANIZATION OF CULTURAL ALIGNMENT. MR. WILLIAMS HAS DONE A GREAT JOB OF THAT. EVERY TIME I GET TO THIS POINT I JUST REALLY HIGHLIGHT HIM AS A LEADER BECAUSE, YOU KNOW, WHEN YOU TALK TO YOUNG PEOPLE IN THE PROFESSION OF CITY ADMINISTRATION, THEY USUALLY STAY AT JOBS LONGER BECAUSE OF THE CULTURE, BECAUSE OF THE LEADERS. THAT REALLY IS WHAT MAKES A HUGE DIFFERENCE WHEN IT COMES TO RETENTION AND THINGS LIKE THAT, AND THEN PUTTING BEST PRACTICES IN PLACE. YOU KNOW, IT WAS A LEADERSHIP TRAINING DONE ON LEAN SIX SIGMA AND EVERY, EVERY DEPARTMENT DIRECTOR ATTENDED. AND THEY WERE ACTUALLY GET A CERTIFICATION. SO THEY'LL BE LEAN SIX SIGMA WHITE BELT. SO IF YOU DON'T KNOW WHAT LEAN SIX SIGMA IS IT'S JUST A WAY TO. IMPROVE PROCESSES, SOLVE PROBLEMS AND USE DATA TO DO THAT. THAT'S A HUGE THING IN THE PRIVATE SECTOR. SO IF YOU'RE PRIVATE SECTOR YOU'RE YOU'RE LOOKING AT NUMBERS PROCESSES AND THINGS LIKE THAT. THEY ARE TOO. AND THEY'RE GETTING TRAINED MORE AND MORE AS WE CONTINUE. SO WE ALSO HAVE SOME DEPARTMENTS THAT ARE INTERESTED IN MOVING TOWARDS THE GREENBELT. THAT'S MORE ADVANCED METHODOLOGY WHEN IT COMES TO THESE BEST PRACTICES.

SO WE'RE NOT JUST IN A PUBLIC SECTOR BUBBLE. WE'RE HAVING BEST PRACTICES FROM BOTH INDUSTRIES, PRIVATE SECTOR AND PUBLIC PUBLIC SECTOR. IN THIS PARTICULAR CITY, WE HAVE BIWEEKLY DIRECTORS MEETINGS. MR. WILLIAMS LIKES TO WRITE STUFF ON THE BOARD AND LET PEOPLE LOOK AT IT OVER AND OVER.

SO THAT'S KIND OF LIKE A THAT'S AN OLD SCHOOL WAY OF KEEPING UP WITH YOUR GOALS. AND YOU HAVE TO

[01:00:05]

YOU KNOW, WHERE WE ARE. AND JUNE, IS THIS UP TO WORK WITH OUR FINANCIAL ADVISORS AS THEY CAME UP EARLY AND SPOKE A LITTLE BIT ABOUT THESE BALANCES AND FUND BALANCES AND BEST PRACTICES. NEXT SLIDE, THE STRATEGIC PLAN IMPLEMENTATION. I THINK WE'RE A LITTLE BIT HIGHER THAN 69% BECAUSE SOME OF THIS INFORMATION HAS BEEN UPDATED BECAUSE YOU HAVE THE BOND COMMITTEE MEETING. AND SO THEY'LL BE MORE ADVANCED DISCUSSIONS ON BIGGER PROJECTS, ON WHAT YOU GUYS ARE INTERESTED IN OR NOT INTERESTED IN. THIS IS A FIVE YEAR STRATEGIC PLAN. YOU ALSO HAVE THE 15 YEAR VERSION OF IT, AND THAT'S 2038. SO WE'RE CONTINUALLY DOING THIS. YOU'LL GET UPDATES EVERY SO OFTEN. LIKE I SAID EARLIER, WE'LL DO A REFRESHER PROBABLY AT THE LATER PART OF THE YEAR SO THAT WE CAN KIND OF GET MORE ENGAGEMENT FROM YOU GUYS AND NEWER COUNCIL MEMBERS ON THIS PARTICULAR STRATEGIC PLAN. NEXT SLIDE, CUSTOMER SERVICE TRAINING. MR. WILLIAMS, WHEN HE GOT HERE, MADE THIS A MANDATORY THING. SO IT IS REOCCURRING FOR STAFF. THERE WAS ONE IN THE FALL. THERE WAS ONE IN THE SPRING. AND LIKE I SAID THIS IS JUST A REQUIRED THING.

SO TO MAKE SURE THAT WE ARE SERVICING CUSTOMERS TO THE BEST OF OUR ABILITY. NEXT SLIDE.

THERE'S BEEN A LOT OF TALKS ABOUT BOND. THEY JUST CAME IN AND GAVE YOU LIKE A LITTLE BOND ONE ON ONE CONVERSATION. BUT THEY'VE IMPLEMENTED CORRECTIVE DISCOUNTS ON WATER AND SEWER SERVICES FOR SOME COMMERCIAL CUSTOMERS. THEY'VE COMPLETED ADJUSTMENT WATER SEWER RATES FOR OTHER CITY AGENCIES RECEIVING INSIDE CITY RATES. THEY'VE INCREASED SOME 75% TO 100%. AS PER ORDINANCE. UPDATED, THE MINIMUM FEE FOR WATER AND SEWER SERVICES. AND THESE ARE FOR LIKE APARTMENTS AND MOBILE HOME PARKS AND A SET TO COVER THE TAP COSTS. THAT'S A 10% OVERHEAD IN ACCORDANCE WITH THE ORDINANCE. AND SO THESE ARE JUST KIND OF SOME OF THE THINGS THAT GO IN ALIGNMENT WITH THE BOND IMPROVEMENT STRATEGY, WHICH IS A PART OF GO TO NEXT SLIDE. WE ARE MOVING TOWARDS PHASE THREE OF THE EMPLOYEE CLASSIFICATION AND RECLASSIFICATION STUDY. THAT WAS DONE A COUPLE OF YEARS AGO, OCTOBER 20TH, 2023 WAS PHASE ONE. YOU KNOW, OCTOBER 24TH WAS PHASE TWO. AND THEN WE'LL BE ON TRACK FOR COMPLETION IN PHASE THREE OF THIS PARTICULAR FISCAL YEAR, FY 26. COMING UP NEXT SLIDE, THE LEGISLATIVE AGENDA. AS YOU KNOW, IT'S OUR SECOND TIME DOING THE LEGISLATIVE AGENDA. WE DO IT IN ALIGNMENT WITH THE SESSIONS AT THE CAPITOL. YOU GUYS DETERMINE WHAT THE PRIORITIES ARE. DEPARTMENT DIRECTORS COME UP WITH SOME BARRIERS THEY FACE THAT ARE MORE LEGISLATIVE IN NATURE. AND THEN WE DEVELOP WHAT THEY CALL A LEGISLATIVE AGENDA. IT'S A DOCUMENT THAT WE ARE ABLE TO TAKE TO OUR STATE AND FEDERAL PARTNERS TO ADVOCATE FOR THINGS THAT BENEFIT OUR CITY AND TO PROTECT THE CITY'S AUTHORITY THROUGHOUT THE TIME. SO WE'RE CONSISTENTLY DOING THAT. WE HAVE BILLS PASSED, THE HOUSE BILL THAT'S CONNECTED TO THE POTENTIAL HOTEL PROJECT WAS A PART OF THAT. AND WOULD NEXT PHASE OF THIS OR NEXT THING WITH THIS WILL BE WE'LL MEET WITH OUR LEGISLATIVE CONSULTANT, WHICH IS

[01:05:01]

WE'LL COME BACK. YOU KNOW HILCO WILL DO THAT AND WE'LL BE ABLE TO DISCUSS THAT NEXT SLIDE. THE VEHICLE ACCIDENT REDUCTION PLAN. THIS IS THE CITY DEVELOPING VEHICLE ACCIDENT REDUCTION PLAN TO ADDRESS UNSAFE DRIVING BEHAVIORS, MAJOR AND MINOR ACCIDENTS AND GAPS IN SAFETY OVERSIGHT. KEY STEPS INCLUDE REORGANIZING DEPARTMENTS TO ENHANCE RISK MANAGEMENT. AND SO THAT'S BEEN GOING ON. THAT'S HEADED UP BY OUR CITY ATTORNEY. AND SO THAT WAS IMPLEMENTED HAS BEEN ALREADY IMPLEMENTED. AND THEY'RE CONTINUING TO DRIVE DOWN THE NUMBER OF ACCIDENTS THAT HAPPEN WITH CITY VEHICLES. NEXT SLIDE. THIS IS MANAGEMENT SUCCESSION PLANNING. IT'S A LITTLE BIT SIMPLER BECAUSE YOU KNOW IT ALLOWS YOU TO KIND OF SEE OUR ORGANIZATION AND THE DEPT REALLY OF A TEAM. AND SO YOU HAVE THE KEY UPDATES ON THIS ONE. YOU HAVE TWO ASSISTANT CITY MANAGERS. YOU HAVE A NEW PUBLICS WORK DIRECTOR. YOU HAVE A NEW COMMUNICATIONS DIRECTOR, A NEW CVB DIRECTOR, A NEW FACILITIES DIRECTOR, NEW PLANNING AND COMMUNITY DEVELOPMENT DIRECTOR.

YOU HAVE A NEW PARKS AND GREEN SPACE DIRECTOR AND YOUR NEW POLICE CHIEF. AND SO SUCCESSION PLANNING, OBVIOUSLY, AS YOU KNOW, IS IF SOMEBODY IS OUT, WHO'S NEXT UP. AND SO THIS ALLOWS YOU TO SEE THE TYPE OF LEADERSHIP AND THE TYPE OF MANAGEMENT THAT WE HAVE IN PLACE. NEXT SLIDE. ALL RIGHT. THIS IS THE THIRD GOAL HAVING A VIBRANT DOWNTOWN AND RIVERFRONT.

AND THE CITY IS EXPLORING THE DEVELOPMENT OF A DOWNTOWN HOTEL. AS YOU KNOW I CAN SAVE A LOT OF THE UPDATES ON THIS BECAUSE YOU WILL HAVE A MEETING ON JUNE THE 17TH TO REALLY DISCUSS AND FURTHER WHAT YOU GUYS PRIORITIES AND PLANS ARE THAT WILL BE HELD IN THE EXECUTIVE SESSION. SO I'LL MOVE TO THE NEXT SLIDE. DOWNTOWN MASTER PLAN AS WELL IS PROBABLY CONNECTED TO THAT DOWNTOWN HOTEL AND WHAT YOU GUYS PLAN ON DOING DOWNTOWN, BUT THERE HAVE BEEN SOME CONCEPTS PRESENTED TO YOU, AND THERE HAVE BEEN SOME THINGS THAT HAVE BEEN PUT IN PLACE. ONE OF THEM IS OBVIOUSLY THE RIVERFRONT PARK GRAND OPENING, WHICH IS THIS THURSDAY, JUNE THE 12TH, 5:30 P.M. AT RIVERFRONT PARK. SO THAT'S A BIG PART OF THE DOWNTOWN PLAN AND GETTING PEOPLE TO COME DOWN HERE, WORK, LIVE AND HAVE FUN. SO NEXT SLIDE, FOOD TRUCK PARK. I KNOW THIS WAS PREVIOUSLY PRESENTED TO YOU GUYS. THE RFP WILL BE ADVERTISED WITHIN THE NEXT COUPLE WEEKS. SO THAT WOULD BE SLATED FOR THE SUMMER OF 2025. AND THEN I THINK YOU GUYS DISCUSSED TWO PRIORITY LOCATIONS, BUT OPENING IT UP FOR THE PRIVATE SECTOR TO DETERMINE IF THEY HAVE ANOTHER LOCATION.

AND SO THAT WAS THE NECHES RIVER. YOU HAVE THE ROTARY PARK AND THAT THIRD LOCATION OPENED UP FOR SOME CREATIVITY FROM THE PRIVATE SECTOR. SO WE'LL PUT THAT RFP OUT WITHIN THIS SUMMER, PROBABLY IN THE NEXT COUPLE WEEKS AT THE LATEST. NEXT SLIDE. THIS IS AS SIMPLE AS THAT DOG PARK. THE BUILDING IS GONE, THE SITE IS CLEARED AND IT'S WAITING ON YOU GUYS DIRECTION FOR NEXT STEPS. SO THIS IS THAT AT&T BUILDING. WE'LL GO TO THE NEXT SLIDE. ALL RIGHT. THIS IS GO FOR YOU WANT BEAUMONT TO HAVE LIVABLE NEIGHBORHOODS OLD AND NEW. AND SO THIS IS THE HOMELESS STRATEGY TO CITY COUNCIL AND STAFF CONDUCTED SEVERAL MEETINGS AND WORK SESSIONS TO DEVELOP THE CURRENT HOMELESS STRATEGY. THE CITY ENACTED CAMPING ORDINANCE. AND THEN YOU DID THE ORDINANCE ENFORCEMENT WITH THE TASK FORCE ESTABLISHED TO ADDRESS ISSUES ON THE STREETS AND SIDEWALKS, CITY PARKS AND FACILITY PROPERTIES, AND PRIVATE PROPERTY. WE'RE GOING TO CONTINUE TO WORK ON THIS. AS YOU KNOW, HOMELESSNESS IS OR UNHOUSED POPULATION IS A BIG TOPIC WITH CITIES. AND HOW YOU STRATEGIZE AND MOVE FORWARD IS GOING TO BE HUGE. SO STAFF CONTINUES TO WORK WITH OUR NONPROFIT PARTNERS TO ADDRESS THESE ISSUES, ESPECIALLY THROUGH PROVISION OF FEDERAL FUNDS. AND OBVIOUSLY THAT COULD BE A LITTLE BIT DIFFERENT NOWADAYS, BUT WE'RE STILL GOING TO CONTINUE TO MOVE FORWARD IN THIS. AND SO WE GET DIFFERENT DIRECTION. VACANT LOT STRATEGY. THIS IS HEADED UP BY MISS DEMI INGHAM. AND THE BIGGEST THING WITH THIS IS THAT, YOU KNOW THE BARRIER FOR SOME SOME OF THESE LOTS TO GET MOVED FORWARD IN. THE NEXT STEP IS HAVING RESIDENTIAL PLANS. AND SO THEY'RE WANTING TO IMPLEMENT HAVING PRE-APPROVED RESIDENTIAL PLANS. AND THAT REALLY WILL HELP

[01:10:01]

YOU'VE BEEN GETTING UPDATES ON WHAT THE TEAM IS DOING DOWNTOWN AND HOW THEY'RE IDENTIFYING BUILDINGS AND WHAT'S THE STATUS OF THE BUILDINGS. AND SO THIS IS THE PROACTIVE DOWNTOWN CODE ENFORCEMENT. OBVIOUSLY, I JUST SAID IT'S UNDERWAY. THE COUNCIL ADOPTED A VACANT BUILDING REGISTRY, AND IT CONTINUES TO SUPPORT STAFF EFFORTS OF CODE COMPLIANCE WITHIN THE CENTRAL BUSINESS DISTRICT, WHICH IS ESSENTIALLY DOWNTOWN. AND LIKE I SAID, COUNCIL, YOU ALREADY RECEIVED REPORTS ON THIS. SO THIS IS SOMETHING THAT'S ONGOING FROM THE PLANNING AND COMMUNITY DEVELOPMENT TEAM. ALL RIGHT. THEN YOU HAVE YOUR OLDER HOME REVITALIZATION PROGRAM, AND THE CITY IS WORKING TO DEVELOP AN OLDER HOME REVITALIZATION MODERNIZATION PROGRAM TO ADDRESS THE LARGE NUMBER OF AGING PROPERTIES AND EXPLORE POTENTIAL PUBLIC PRIVATE PARTNERSHIPS FOR REDEVELOPMENT. THIS PROGRAM IS PENDING. IT LACKS STAFF RESOURCES TO IMPLEMENT IT AT THIS PARTICULAR TIME, SO THEY HOPE TO BEGIN SOME RESEARCH ON THIS IN FY 26. NEXT SLIDE. AND THEN YOU HAVE THE HOMEWORK. THE HOMEWORK FUNDS THE FUNDS HAVE BEEN ALLOCATED TO LEGACY CDC.

THEY ACQUIRED A MULTIFAMILY COMPLEX OFF BROADWAY FOR EIGHT NON CONGREGATE SHELTERS WITH COUNCIL APPROVAL, LEGACY CDC ARE UNDERWAY WITH REPAIRS TO THE STRUCTURE AND COORDINATION OF ENTRY. SO THEY ARE ONGOING WITH THIS PARTICULAR MATTER. ALL RIGHT. WE'RE GETTING CLOSE TO THE END OKAY. SO THIS IS GOAL FIVE. WE'VE ALREADY STATED OVER AND OVER THESE ARE THE GOALS THAT YOU DECIDED. YOU SAID IF YOU DESCRIBE BEAUMONT YOU WANT TO SAY BEAUMONT HAS UPGRADED CITY FACILITIES AND INFRASTRUCTURE THROUGH INVESTMENTS. THAT WOULD BE THE STATEMENT FOR YOU GUYS. AND WE'RE GOING TO CONTINUE TO IDENTIFY AREAS OF PROBLEMS. DO THEY DO TELEVISING SMOKE TESTING, DYE TESTING. THIS IS DONE IN-HOUSE WITH CONTRACTORS AND IT'S ONGOING EACH FISCAL YEAR. SO THEY HAVE A DESIGN ENGINEER THAT CONTINUES TO WORK, CONTINUE TO CREATE WORK ORDERS FOR SYSTEM UPDATES. THEY HAVE IN-HOUSE CREWS THAT ARE DOING PIPE BURSTING AND MANHOLE REHAB. AND AS YOU ARE CONTINUALLY GETTING UPDATES ON THESE PARTICULAR PROJECTS AS WELL AS CITY COUNCIL, NEXT SLIDE. ALL RIGHT. YOU HAVE THE SEWER LIFT STATION PROJECTS, HARRIET STREET SHOULD BE OUT FOR BID THIS SUMMER. AND WALNUT AVENUE LIFT STATION REHAB. IT SHOULD BE FOR THIS SUMMER AS WELL. PINEY POINT, MULBERRY AND WALL STREET LIFT STATIONS HAVE ELECTRICAL UPGRADES AND THOSE ARE STILL IN PROGRESS. LIFT STATION ASSESSMENT IS STARTING FY 224. ONLY TWO DONE. THAT'S 23RD STREET IN WEST CALDER AT FIG ACRE. AND AS A PART OF THE ASSESSMENT OF 23RD LIFT STATION IS ABOUT TO START A REHAB ON A 48 INCH FORCE MAIN AND THE OTHER END WILL CONTINUE IN FY 26. SO NEXT SLIDE. THE CITY IS CONTINUING TO ADDRESS AGING SEWER INFRASTRUCTURE AND INFLOW INFILTRATION ISSUES THROUGH EVALUATION METHODS. THEY HAVE A SEWER MAIN INSPECTION. IT'S CONTINUOUS AND ONGOING REPLACING AGING INFRASTRUCTURE. AND THIS IS IN-HOUSE AND CONTRACTING PIPE BURSTING CREWS. I THINK I SAID LAST TIME, YOU KNOW, A LOT OF THIS WORK IS DONE HERE, BUT CONTRACTORS IN-HOUSE COST IS ABOUT 6 MILLION. 5.7 MILLION WAS DONE IN FY 25 BUDGET FOR THE MAIN REPLACEMENT. WITH THESE FIGURES, WE CHANGE APPROXIMATELY 1.5. AND THAT'S AN OVERESTIMATION OF THE CITY SEWER MAIN. SO IT'S A LOT OF WORK TO BE DONE. THAT IS A LOT OF WORK THAT IS CURRENTLY BEING DONE.

AND WE KNOW INFRASTRUCTURE IS A BIG TOPIC. SO NEXT SLIDE, THE STORMWATER MASTER PLAN. WE'RE REQUESTING FEMA DIRECT ADMINISTRATIVE COST FUNDING FOR THIS. THIS IS A PARTNERSHIP WITH DIDI SIX. AND THE CITY CONTRIBUTED A PORTION TO IT. AND 86 CONTRIBUTED ANOTHER PORTION TO THIS. SO NEXT SLIDE OKAY THE INFILTRATION AND INFLOW. THIS IS A STUDY THAT FOCUSES ON IDENTIFYING AND ADDRESSING AGING SEWER INFRASTRUCTURE ISSUES THAT LEAD TO OVERFLOW AND SURCHARGING. THEY'RE IN PHASE. THE PHASE THREE IS COMPLETE. THIS INCLUDED FLOW MONITORING

[01:15:02]

AND WE'LL BE ABLE TO RUN NUMBERS AND IDENTIFY LIKE A TRUE BUDGET TO THE STRATEGIC PLAN MOVING FORWARD. SO THAT'S GOOD. WE'LL COLLECT AND ANALYZE FEEDBACK THROUGH TARGETED SURVEYS, BECAUSE AS YOU GO TO THE NEXT PHASE OF THE STRATEGIC PLAN, WE'LL GET YOUR FEEDBACK. AND THAT'S PRETTY MUCH IT. I THINK I'VE HIGHLIGHTED EVERYTHING ELSE. ANY QUESTIONS OR COMMENTS? WELL, I JUST I JUST WANT TO ADD PROBABLY THE KEY PART OF THIS GOING FORWARD IS GOING BACK AND REVISIT THE PLAN WITH THIS COUNCIL BECAUSE THE MAJORITY OF COUNCIL HAS CHANGED. SO WE WANT TO KNOW WHAT YOUR PRIORITIES ARE AND WHAT'S IMPORTANT TO YOU. SO WE'LL BE COMING BACK PROBABLY SOONER RATHER THAN LATER TO HAVE THAT DISCUSSION WITH WITH THIS COUNCIL. ALL RIGHT. THANK YOU, MR. CITY MANAGER. COUNCILMAN TURNER. SO I WON'T POINT IT OUT TO THE MAYOR. I WAITED AND LET YOU GET THROUGH IT. I DIDN'T INTERRUPT IT ALL. YEAH. I NOTICED ON ONE OF OUR GOALS WITH OUR CITYWIDE BEAUTIFICATION. IT HAD FREEWAYS. RIGHT NOW, I KNOW I CAN SPEAK FOR MYSELF THAT I'M NOT AS PLEASED WITH. YOU KNOW HOW TEXDOT IS OPERATING WITHIN OUR CITY IN COMPARISON TO HOW I SEE THEM OPERATE WITHIN OTHER CITIES WHEN I TRAVEL? WHAT I'M REQUESTING, MR. MANAGER, IS SIMILAR TO HOW COUNCIL HAS A MEETING WITH BISD AND WE CAN HAVE TRANSPARENT CONVERSATIONS.

I WOULD HOPE OUR COUNCIL WOULD BE INTERESTED IN HAVING A MEETING WITH TXDOT, WHERE WE CAN ACTUALLY HAVE THOSE TRANSPARENT CONVERSATIONS ABOUT OUR EXPECTATIONS ON HOW WE WANT THEM TO OPERATE WITHIN OUR CITY. I THINK IT'S IMPORTANT THAT, YOU KNOW, THEY OPERATE THAT SAME LEVEL OF INTEGRITY AND RESPECT AS THEY DO IN OTHER CITIES. I JUST THINK IT COULD BE DONE A

[01:20:06]

I WANT TO KNOW WHERE WE'RE GOING PRIOR TO VOTING. AND MY LAST THING IS, WITH VACANT LOTS, WE IT'S A HUGE PROBLEM IN THE CITY OF BEAUMONT. WHAT NORMALLY HAPPENS IS ONCE AN OLDER AIR MAY PASS AWAY, IT'S KIND OF HARD IF THEY DON'T HAVE A FAMILY MEMBER OR NOBODY IN LINE TO TAKE CARE OF THAT PROPERTY. AND IT KIND OF BRINGS DOWN THE VALUES OF OUR NEIGHBORHOODS OVERALL. SO WHAT I WOULD LIKE TO SEE IS A LEGISLATIVE STRATEGY. I WOULD LIKE TO SEE US PUT SOME TYPE OF LEGISLATION IN PLACE TO GET WHAT OUR LEGISLATORS ON, GIVING CITIES MORE AUTHORITY TO DO SOMETHING OR EXPEDITE THE PROCESS AND HOW WE DEAL WITH VACANT LOTS. I KNOW IT'S KIND OF TIME CONSUMING. IT CAN TAKE YEARS, BUT YOU KNOW, THE NEIGHBORS HAVE TO LITERALLY LIVE WITH THAT, BE NEXT TO THAT. AND IT'S KIND OF LIKE TOO MUCH. NOTHING WE CAN REALLY DO WITH IT. I'D LIKE TO SEE US HAVE MORE AUTHORITY TO DEAL WITH THOSE VACANT LOTS. AND I THINK THOSE CAN KIND OF FOR ME, THAT'LL SHORE UP SOME OF THE THINGS THAT I'M LOOKING FOR. WITH A STRATEGIC PLAN ALREADY IN PLACE. AND ONE THING I'LL ADD, PERHAPS MAYBE WE CAN SCHEDULE A WORK SESSION IN A MAYBE NOT ON A COUNCIL DAY IF NECESSARY, BECAUSE I KNOW I'VE GOTTEN SOME.

I'VE BEEN ABLE TO SEE SOME PLANS FOR TEX-DOT AND WHAT IT'S IN TERMS OF THE IMAGING. BUT ONE OF THE THINGS I'VE LEARNED AND I KNOW THAT MR. MR. CITY MANAGER, YOU WERE PROBABLY AWARE OF WHEN YOU START ASKING ABOUT MOUNT BELVIEU AND SOME OF THESE OTHER PLACES, WHY THEY LOOK AT PART OF IT IS, I THINK HISTORICALLY IN THIS BEAUMONT AS A CITY WAS LESS INVOLVED. SO WE CAN HAVE THEM PRESENT AND THEN AND MAKE SURE THAT AS A COUNCIL TOO, THAT EVERYBODY IS AWARE OF THE DIRECTION IN TERMS OF HOW IT'S BEING BROUGHT TOGETHER AND WHAT THEY'RE ENVISIONING IT TO LOOK LIKE. AND IF WE WANT TO DO SOMETHING DIFFERENT, WHERE ARE THE COSTS WOULD BE FOR US WHAT THEY'RE WILLING TO DO AND THEN WHAT THEY'LL SHARE WITH US. BUT BECAUSE I KNOW WE DID THAT WITH LAMAR UNIVERSITY AND TEX-DOT OUT THERE BY LAMAR TO BE ABLE TO CREATE SOME OF THOSE. SO PERHAPS THAT'S SOMETHING WE CAN, BECAUSE I KNOW IT TAKES SOME TIME TO WHEN WE DO IT. SO DOING IT IN A REGULAR COUNCIL MEETING MAY MAKE THAT EXCEPTIONALLY LONG. BUT OKAY, SO WE'RE TALKING ABOUT A COUNCIL MEETING WHERE WE HAVE TXDOT COME IN AND JUST DO A WORK SESSION. RIGHT? YEAH. AND ALSO PROVIDE SOME OF THE ARCHITECTURAL RENDERINGS. COUNCILMAN CRENSHAW THANK YOU, MR. MAYOR. IN THAT MEETING, I WOULD LIKE TO INVITE THE BOSSES OF THE BEAUMONT DISTRICT ENGINEER FROM AUSTIN, BECAUSE I AM NOT CONVINCED IN WHAT I KNOW SO FAR THAT OUR LOCAL DISTRICT ENGINEER HAS THE BEST INTEREST OF BEAUMONT IN MIND. AND I WOULD LIKE FOR HIS BOSSES TO AT LEAST BE INVITED. ANYBODY ELSE? WELL, MILES, I GUESS THAT MEANS YOU DID A GOOD JOB. OH, OKAY. THAT'S

[01:25:05]

[3. FY 2025 Financial Update and Year-End Forecast]

AND WE HAVE TO KNOW WHAT WE HAVE TO START WITH. SO THIS DISCUSSION GIVES AN UPDATE FROM WHERE WE BEGAN AT THE BEGINNING OF THE YEAR TO WHERE WE ARE NOW AND WHAT WE'RE PROJECTING TO BE AT THE END OF THIS FISCAL YEAR. GOOD MORNING, COUNCIL, MR. WILLIAMS SAID. I'LL BE GOING OVER PROJECTIONS FOR SOME FUNDS WITHIN THE CITY. SO FIRST WE'LL BE TALKING ABOUT THE GENERAL FUND REVENUE. AS YOU SEE, WE HAD A BUDGET OF $164,010,086 AS OF MARCH. OUR ACTUAL COLLECTION IS 4.8% HIGHER THAN LAST YEAR. WE'RE PROJECTING FOR GENERAL FUND REVENUE, $163,405,280. SO THE SHORTAGE IS APPROXIMATELY. $6,604,806 COMPARED TO BUDGETED REVENUE. THE VARIANCE DRIVERS WOULD BE EMS CHARGES. WE LOWERED OUR PROJECTION FOR EMS CHARGES BASED ON CURRENT COLLECTION, AND THEN ALSO WE ADJUSTED OUR PROJECTIONS FOR SALES TAX AND USE BY $1.4 MILLION. SO THE DIFFERENCE BETWEEN THOSE TWO NUMBERS GIVE YOU THE. $604,806 VARIANCE. NEXT SLIDE. SO REVENUE. SO HERE WE'LL SHOW YOU THE SALES TAX OVER THE LAST FEW YEARS. SO YOU'LL SEE IN 2023 WE HAD A FAVORABLE VARIANCE OF $1,649,017. IN 24. WE HAD A FAVORABLE VARIANCE OF $196,521.

AND IN 25 WE WERE EXPECTING OR PROJECTING A FAVORABLE BALANCE OF $1,417,091 TO DATE AS OF MARCH. RATHER, WE ARE 9.3% HIGHER THAN WHERE WE WERE LAST YEAR IN SALES AND USE TAX REVENUE. FOR PROPERTY TAX OPERATION AND MAINTENANCE REVENUE. WE HAVE A TABLE SHOWING YOU THE PROPERTY TAX VALUE AND ALSO THE TOTAL TAX RATE SINCE 2021. SO YOU'LL SEE HOW THE TAX TOTAL TAX VALUE HAS INCREASED. AND THEN YOU ALSO SEE HOW SINCE 2021, THE TAX RATE HAS BEEN DECREASED AT THE CITY. TODAY WE ARE AT $49,281,236, WHICH IS 4.7% HIGHER THAN WHAT WE WERE AT MARCH THIS TIME LAST YEAR. SAY A COUPLE OF THINGS. IF YOU GO BACK, YOU LOOK AT THIS SLIDE, YOU LOOK AT 20, 26 APPRAISED VALUES. YOU KNOW, WE GET WE GET SOMETIMES BEAUMONT DOESN'T GET THE POSITIVE NEWS THAT YOU GET. BUT YOU CAN SEE HERE WE'RE APPRAISED. VALUES ARE PROJECTED TO GO UP APPROXIMATELY $7 MILLION OR SO FOR THIS NEXT FISCAL YEAR. FOR US. AND THE PREVIOUS SLIDE WAS AN INCREASE OF ABOUT 1.7. COULD YOU GO BACK ONE MORE? TEN 1.47 INCREASE IN SALES TAX FOR BEAUMONT. WHAT WE'RE PROJECTING FOR THIS YEAR, WHICH IS ALSO A GOOD SIGN FOR THE ECONOMY. SO WHILE WE TEND TO THINK THINGS ARE NOT SO POSITIVE ECONOMICALLY THESE ARE POSITIVE SIGNS. THANKS. YES, SIR. SO NEXT WE HAVE THE WATER AND SEWER FUND REVENUE. SO THE FUND HAS A REVENUE BUDGET OF $62,954,003. TO DATE, WE'RE A 17.3% HIGHER THAN WHAT WE WERE AS OF MARCH LAST YEAR. AND THEN OUR PROJECTION FOR WATER AND SEWER REVENUE IS $67,755,013. SO THE REVENUE PROJECTION HAS A VARIANCE OF A FAVORABLE FAVORABLE VARIANCE OF $4,801,010 COMPARED TO BUDGET REVENUE. THE VARIANCE DRIVER IS AN ADJUSTMENT FOR CHARGES FOR SERVICES. WE INCREASED THAT PROJECTION BY $4,272,121, AND THIS IS LARGELY DUE TO INCREASED REVENUE IN COMMERCIAL CHARGES. AND WE ALSO HAD SOME INCREASED REVENUE FOR MISCELLANEOUS REVENUE AND INTEREST INCOME EARNED. AND THEN BELOW YOU'LL SEE THE RECOMMENDED RATE INCREASES FOR WATER AND WASTEWATER UTILITY RATES. SO FOR 25, WE HAD A RECOMMENDATION OF 4%. AND 10% OF THE CITY WENT

[01:30:01]

AND THEN WE ARE PROJECTING A BUDGET EXPENDITURES OF $14,804,164 FOR 2025, THE SOLID WASTE FUND EXPENDITURE PROJECTION HAS A REDUCTION OF 316,180 COMPARED TO BUDGETED EXPENDITURES. THIS IS LARGELY DUE TO SAVINGS WITHIN FLEET FOR VEHICLE MAINTENANCE AND FUEL AND LUBE. SO IN THIS CHART, WE'LL HAVE A BUDGET VERSUS PROJECTION BY FUND. AND SO YOU'LL SEE THE GENERAL FUND. WE HAVE WHAT WE PROJECTED IN REVENUES FOR BUDGET AND THEN WHAT WE PROJECTED FOR THE YEAR. AND YOU'LL SEE THE VARIANCE WE PREVIOUSLY MENTIONED AT $604,806. AND THEN THE SAME THING FOR EXPENDITURES. YOU'LL SEE WHERE WE PROJECT WHERE WE HAD A BUDGET OF $167,952,266, AND WERE PROJECTED EXPENDITURES FOR THE YEAR TO BE $162,054,255, FOR FAVORABLE VARIANCE OF

[01:35:03]

IT'S BEEN A LOT OF DISCUSSION DURING THE YEAR ABOUT THE GENERAL FUND AND WHAT WE HAD.

YOU KNOW, AS I SAID, A BUDGET IS A SNAPSHOT IN TIME. AND WHEN WE TOOK THAT SNAPSHOT AT THE BEGINNING OF THE FISCAL YEAR, WE WERE REJECTED A BUDGET OF $164,000,010. AND THAT WAS A LOT OF DISCUSSION TO SAY. THERE WAS AN AVERAGE OF 3.5 MILLION FOR THIS PARTICULAR BUDGET. BUT AS WE WORKED AND WE'VE REDUCED, WE'VE BEEN WORKING CONSTANTLY TO REDUCE THIS, THIS FUND AND THIS BUDGET AND FIND SAVINGS AND STUFF. SO WE'RE AT THE BEGINNING OF THE YEAR THAT WAS PROJECTED TO BE A $3.5 MILLION OVERAGE. YOU SEE A $5.898 MILLION IN OUR FAVOR. SO THAT WAS AN $8 MILLION TURNAROUND. THAT'S WHY YOU CAN'T JUMP TO CONCLUSIONS AT THE BEGINNING OF A BUDGET, WHERE IT WENT FROM A 3.5 AND SOME PEOPLE CALLED IT A DEFICIT. IT'S NOT A DEFICIT. WE'RE PROJECTING TO BE $5.89 MILLION IN OUR FAVOR TO THE GOOD. SO JUST WANT TO MAKE SURE THAT POINTS PUT OUT THERE.

WELL, AND ALSO HISTORICALLY THIS IS VERY TYPICAL THAT WHEN I WHEN WE WERE GOING THROUGH THIS AND THIS IS JUST FOR A POINT OF INFORMATION, THE I KNOW OUR COUNTY JUDGE HAS BEEN COUNTY JUDGE SINCE 2010 AND HE'S HE POINTED OUT IN THE SAME IS TRUE WITH THE STATE AS WELL AS THE CITY. AND WE WENT BACK TO 2011 EVERY YEAR, THE PROJECTED EXPENSES EXCEED PROJECTED REVENUES IN THE COUNTY BUDGET, CITY BUDGET AND STATE BUDGET. AND IT NEVER WORKS OUT THAT WAY BECAUSE YOU DON'T SPEND ALL THE MONEY AND YOU END UP GETTING MORE REVENUE IN. YOU PROJECT LOWER ON INCOME AND PROJECT HIGHER ON EXPENSES. SO JUST AS A POINT OF REFERENCE, IT WASN'T SOMETHING NEW THIS PAST YEAR THAT OCCURRED. IT WAS JUST SOMETHING THAT GOT A LOT MORE PRESS. SO IF YOU IF YOU EVER WANT TO SEE THAT DOCUMENTATION, THIS IS HISTORICALLY THERE ARE IT DOES PROJECT THAT WAY. BUT AS YOU SEE AT THE YEAR END, YOU CAN ALSO LOOK AT HOW FAVORABLE IT CAN BE. AND THIS AGAIN THIS IS A SNAPSHOT AT THIS TIME. SO THAT NUMBER CAN EVEN CHANGE BY THE END OF THE YEAR ONE WAY OR THE OTHER. BUT RIGHT NOW AS WE'RE PROJECTING, THAT'S WHAT THE PROJECTION IS. COUNCILMAN WILLIAMS, IS THIS SNAPSHOT THROUGH WHAT TIME PERIOD IS THIS THROUGH THE END OF MAY OR MARCH. MARCH. OKAY. THANK YOU. YES, SIR. SO, AS MR. WILLIAMS STATED, WITH THE NEW PROJECTIONS, WE'RE PROJECTING $163,405,280 IN REVENUE, WE'RE PROJECTING $162,054,255 IN EXPENDITURES, WHICH IS A FAVORABLE VARIANCE OF 1.3 MILLION $1,000,351 2050 $1,025. SO DEFINITELY CHANGED FROM THE 3.5 UNFAVORABLE TO THE 1 MILLION 351,051,000 FAVORABLE.

SO WE DID CHANGE THE BUDGET BASED ON WHAT WE APPROVED IN OCTOBER TO NOW WORKING WITH DEPARTMENTS AND EACH FUND TRYING TO FIND OUT WHERE THEY STAND TODAY. SO FOR SOLID WASTE, WE ARE PROJECTING 819,971 HIGHER THAN WHAT WE BUDGETED. AND THEN WE ALSO HAVE A SAVINGS OF 316,180 IN EXPENDITURES FOR HOTEL AND TOURISM. WE'RE PROJECTING TO RECEIVE $112,202 HIGHER THAN WHAT WE PROJECTED IN REVENUE, AND WE'RE ALSO PROJECTED TO HAVE A SAVINGS OF $141,749 OF SAVINGS AND EXPENDITURES. THE EMPLOYEE BENEFITS FUND WE HAVE. WE HAVE A DECREASE IN REVENUE, BUT THAT'S ONLY BECAUSE WE HAD A DECREASE IN EXPENSES. SO SINCE WE HAVE LOWER EXPENSES, WE LOWERED OUR REVENUE. WE LOWERED OUR REVENUE BY $1,560,580. AND THAT WAS BECAUSE WE HAD AN EXPENDITURE PROJECTION OF $29,515,420, WHICH IS A SAVINGS OF $1,554,030. AND THEN GENERAL LIABILITY, WE INCREASED THE REVENUE PROJECTION $1,651,540, AN INCREASE OF $121,540. AND THEN WE'RE PROJECTING TO HAVE A FAVORABLE PROJECTION OF $28,500. AND ON THIS. GETAWAY. COUNCILMAN TURNER, I DON'T KNOW IF IT'S NECESSARY TO WAIT, BECAUSE I

[01:40:06]

[01:45:03]

THEY WANT OUR CIP PLAN. SO ACTUALLY, BEGINNING THIS WEEK, WE WILL BE REACHING OUT TO OUR CONSULTANT TO START THAT WHOLE PROCESS AGAIN. AND THEY DO LOOK AT OUR FUND BALANCE. AND THEY WILL LOOK AT THESE NUMBERS AND THEY WILL MAKE ADJUSTMENTS TO THE RATES ACCORDINGLY. SO LAST YEAR THE NUMBERS LIKELY DIDN'T LOOK AS FAVORABLE AS THEY DO NOW. SO THEY WILL READJUST THEIR RECOMMENDED RATE INCREASES FOR WATER AND SEWER. BASED ON THE UPDATED INFORMATION WE PROVIDE THEM OVER THE NEXT COUPLE OF WEEKS, AND THEN THEY WILL COME BACK AT THE END OF JULY AND GIVE A PRESENTATION TO COUNCIL AND PRESENT WHAT THEIR RECOMMENDATION IS TO, IN ORDER TO MAINTAIN SUFFICIENT FUNDING IN THE WATER AND SEWER FUND. ALL RIGHT. THANK YOU. DUNCAN. OKAY.

SO I'LL CONTINUE TO GO THROUGH THE FUNDS. AS COUNCILMAN CRENSHAW MENTIONED, WE ARE $17,392,919 AHEAD OF OUR PROJECTED OUR REQUIRED FUND BALANCE FOR THE WATER AND SEWER FUND. BASED ON THESE PROJECTIONS FOR SOLID WASTE, WE HAVE A 15% FUND BALANCE REQUIREMENT. AND OUR PROJECTED FUND BALANCE BASED ON THIS PROJECTION IS $4,445,312. THE REQUIRED FUND BALANCE IS $2,220,625. AND OUR. 2,224,687 MILLION ABOVE OUR REQUIRED FUND BALANCE POLICY FOR THE SOLID WASTE FUND. FOR THIS FUND, WE DO HAVE A PLANNED SALE ADDED TO THE LANDFILL, SO I BELIEVE THE SALE COULD COST UP TO $4 MILLION. SO THIS IS WHY WE ARE. YOU'LL SEE OUR FUND BALANCE HIGHER THAN THE REQUIREMENT, BECAUSE WE'RE PREPARED FOR THE PURCHASE OF THE LAND SALE WITHIN SOLID WASTE FOR HOTEL TOURISM, THERE IS NO REQUIRED FUND BALANCE. THE SAME WITH EMPLOYEE BENEFITS. SO THE FUND BALANCE IS WHATEVER IS LEFT IS WHAT IT WILL BE OVER THE POLICY AND THEN THE GENERAL LIABILITY. WE TYPICALLY DON'T HAVE A FUND BALANCE. WE JUST PAY FOR TRANSFER ENOUGH TO HAVE FUNDING FOR OUR CLAIMS. SORRY. NEXT SLIDE. I THINK THAT'S IT. SO IF YOU HAVE ANY QUESTIONS WE'LL TAKE THEM AT THIS TIME. COUNCILMAN TURNER, MR. MANAGER, I REACHED OUT TO TAX ASSESSOR KATE CARROLL AND SHE IS OPEN TO KIND OF LOOKING AT WHAT THE PROPERTY TAX COLLECTION RATE WAS IN THE PAST AND SEEING WHAT CAN WE DO AS A CITY TO WORK WITH THE COUNTY TO

[01:50:01]

[CounciImember Comments]

EVERYBODY DID AN OUTSTANDING JOB AND I REALLY APPRECIATE IT. YOU GUYS WERE YOU ANSWERED ALL MY QUESTIONS AND YOU GAVE OUT A LOT OF GOOD INFORMATION AND MAKES THIS BUDGET STUFF EASIER TO UNDERSTAND. SO THANK YOU ALL. THANK YOU. COUNCILMAN. COUNCILMAN HILLIARD. I ANSWERED ALL MY QUESTIONS. THE ONLY QUESTION I HAVE IS THAT WE REACHED THE $5 MILLION. WHAT? WHAT DID WE CUT? BECAUSE I KNOW THAT IN VISITING WITH THESE DEPARTMENT HEADS, ONE OF THE RESOUNDING THINGS I HEAR IS STAFFING. A LOT OF THEM ARE UNDERSTAFFED, AND THEY NEED MORE PEOPLE. SO MY QUESTION IS, IS WHAT DID WE CUT IN ORDER TO REACH THE $5 MILLION MARK? WHAT WHAT IS BEING LEFT OUT THAT MAY COME BACK AND GET US LATER? THAT PRESENTATION HAD A BIT OF AN ITEMIZED LIST OF THINGS THAT WERE ON THAT SLIDE. I DON'T KNOW IF WE PULL IT BACK UP, BUT WE'LL GIVE YOU A COPY OF THE PRESENTATION. THINGS THAT INSIDE THE DEPARTMENTS THAT WERE REDUCED WAS NOT STAFFING AT THIS POINT. NO. WE ARE REVIEWING STAFFING BECAUSE WE HAVE SOME POSITIONS THAT'S BEEN VACANT SINCE 22, AND WE'RE REVIEWING TO SEE IF ALL THEY NEEDED AND THOSE TYPE OF THINGS. SO IF STAFF IF THEY WANT TO FILL THEM, THEY CAN FILL THEM. BUT IF YOU HAVEN'T USED IT SINCE 22, WE NEED TO TALK ABOUT IT. SO, YOU KNOW, I JUST KNOW THAT THAT THAT WAS THAT WAS VERY IMPORTANT TO A LOT IS THE UNDERSTAFFED. YEAH. ON A LOT OF THESE A LOT OF THESE DEPARTMENTS. YEAH. THANK YOU. THANK YOU AND GOOD JOB. I MEAN IF WE'RE SHOWING A $5 MILLION IN THE PLUS WELL THIS VERSUS THE 3.5 BUT THAT'S STILL GOOD. THAT'S WAY TO GO. THANK YOU.

THANK YOU, COUNCILMAN HILLIARD. COUNCILMAN TURNER, JUST THE STAFF AND FINANCE DEPARTMENT. I UNDERSTAND PROJECTIONS BECAUSE IT'S KIND OF HARD TO PROJECT WHAT YOU'RE GOING TO END UP AT THE END OF THE YEAR, AND YOU GUYS ARE UP WITH A LOT OF CRITICISM AND CRITIQUES.

HONESTLY, WE'VE BEEN TRANSPARENT THROUGH THIS POLITICAL CAMPAIGN. AND JUST TO KIND OF GET THIS INFORMATION OUT IS, YOU KNOW, IT'S GOOD, BUT ULTIMATELY, LIKE MR. CRENSHAW SAID, WE JUST WANT TO MAKE SURE THESE PROJECTIONS HOLD UP TO THE ACTUAL REAL NUMBERS. AND I'M HOPEFUL BECAUSE I'VE SEEN SINCE I'VE BEEN ON COUNCIL, MR. WILLIAMS, THAT THAT NUMBER HAS JUST STARTED TO DECREASE, DECREASE, DECREASE. AND AGAIN, I UNDERSTAND WE'RE SAYING CUTS I AGREE WITH YOU.

BUT IF YOU'RE GOING TO INCREASE REVENUE AND YOU'RE NOT GETTING POPULATION GROWTH, THEN YOU'RE GOING TO HAVE TO CUT SOMEWHERE. SO AT SOME POINT AS A COUNCIL WE GOT TO HAVE THOSE, YOU KNOW, THAT DIALOG TO IF WE'RE INCREASING WAGES AND BENEFITS AT SOME POINT, IT HAS TO BE A TRANSPARENT CONVERSATION ABOUT THOSE CUTS BECAUSE WE CAN'T CHALLENGE THE MANAGER WITH OPERATING A POSITIVE IN EVERY CATEGORY. IF THE REVENUE ISN'T COMING IN AND WE DON'T MAKE ANY CUTS, IT'S GOING TO HAVE TO BE ONE OR THE OTHER. AND I'VE KIND OF LEARNED THAT SINCE I'VE BEEN HERE. IT'S COMPLICATED TO BALANCE THAT, ESPECIALLY IF YOU'RE NOT GETTING ENOUGH PEOPLE

[01:55:02]

I JUST ENCOURAGE COUNCIL MEMBERS, IF IT'S SOMETHING THE STRATEGIC PLAN THAT Y'ALL DON'T AGREE WITH, THIS IS THE TIME TO KIND OF SPEAK UP, BECAUSE IT WILL KEEP ROLLING. AND I JUST ENCOURAGE YOU ALL TO FEEL COMFORTABLE TO SPEAK UP ON WHAT Y'ALL MIGHT NOT AGREE WITH. AND LET'S DISCUSS IT AND SEE WHAT WE CAN DO TO KIND OF ADJUST IT. I JUST WANT TO BE ON THE SAME PAGE. WE CAN KIND OF MOVE THE CITY FORWARD. THANK YOU, COUNCILMAN TURNER. COUNCILMAN WILLIAMS YEAH, THANKS TO STAFF FOR PUTTING THE REPORT TOGETHER. I IT PROVIDES A PRETTY CLEAR UNDERSTANDING OF WHERE MINDS WERE HEADED IN THE PAST AND THROUGH MARCH. IT LOOKS GOOD. I THINK MY ONLY REQUEST IS, IS IT POSSIBLE FOR US TO GET A COPY OF THIS REPORT JUST SO WE HAVE SOMETHING TO REFERENCE AS TIME GOES ON AND DIGEST IT A LITTLE MORE? BUT YEAH, NO, I APPRECIATE THE WORK THAT WENT INTO IT AND LOOK FORWARD TO TALKING ABOUT IT MORE. THANK YOU, COUNCILMAN WILLIAMS. COUNCILMAN CRENSHAW. AGAIN, I HAVE SIMILAR COMPLIMENTS FOR STAFF TODAY.

GREAT JOB ON THE PRESENTATIONS AND I DO GREATLY APPRECIATE THE CITY MANAGER OFFERING TO HAVE A NEW MEETING TO TALK ABOUT THE PRIORITIES OF THIS CURRENT COUNCIL COMPARED TO SOME OF THE PRIORITIES THAT WE DID SEE IN THE PRESENTATIONS TODAY, BECAUSE THERE ARE SEVERAL OF THOSE PROJECTS THAT I AM CONCERNED JUST DO NOT MEET WITH THE TRUE NEEDS OF THE CITY MOVING FORWARD. AND SO I DO LOOK FORWARD TO THE OPPORTUNITY TO GIVE SOME INPUT ON MAYBE MAKING SOME CHANGES TO SOME OF THOSE PROJECTS. THANK YOU. THANK YOU, COUNCILMAN CRENSHAW. MADAM CITY ATTORNEY. NO. NO COMMENTS. I DIDN'T FORGET YOU. I WOULD LIKE TO THANK ALL OF THE DEPARTMENT DIRECTORS AND STAFF FOR MEETING WITH US IN A SHORT PERIOD OF TIME TO GO OVER YOUR, YOUR, YOUR BUDGET. IT WAS VERY HELPFUL. SO I HOPE THAT WHEN WE START MEETING WITH THE CITY MANAGER, WE'VE ALREADY MADE PROGRESS. WE CAN DISCUSS THE THINGS THAT ARE VERY IMPORTANT TO YOU. THANK

[City Manager Comments]

SURE, SURE. EMAIL CONVERSATIONS SO WE CAN, YOU KNOW, CATCH THAT AS EASY TO FIX UP FRONT THAN ON THE BACK END FOR SURE. THANK STAFF. STAFF'S DONE. TERRIFIC WORK, INTENSE WORK. IT'S JUST BEGINNING WITH THE DIRECTORS WILL BE MEETING WITH THEM AND THERE'LL BE A LOT OF PAPER FLYING AND THINGS ALL OVER THE PLACE, SO WE LOOK FORWARD TO IT THOUGH. THANK YOU. YES, AGAIN, JUST WANT TO APPLAUD YOU, MR. CITY MANAGER AND THE STAFF AND ALL THE DIRECTORS. AND WE DO GET MONTHLY. FINANCIALS THAT WE ARE ABLE TO REVIEW. THEY'RE RATHER LENGTHY LENGTHY. SO IF YOU NEED SOME ASSISTANCE, I KNOW OUR FINANCE DEPARTMENT WILL GIVE YOU INFORMATION ON HELPING TO BE ABLE TO SEE, BECAUSE OFTENTIMES WHEN WE JUST SEE IN BIG NUMBERS. BUT IT IS SOMETHING YOU CAN TRACK MONTHLY. AND THE INFORMATION I FOUND, THEY DO AN EXCELLENT JOB AND GIVES ME A HIGH DEGREE OF CONFIDENCE WHEN WE'RE IN THE BUDGETING PROCESS, BECAUSE I SEE THAT THEY ARE ALWAYS CONSERVATIVE IN THEIR PROJECTIONS OF REVENUE, AND THEY'RE AND THEY'RE LESS CONSERVATIVE WHEN THEY'RE LOOKING AT EXPENSES. SO WHICH IS THE WAY TO BE WHEN YOU'RE PROJECTING BUDGETS. SO WITH THAT, THE MEETING IS ADJOURNED. SO UNTIL THE 27TH AND I BELIEVE THERE IS LUNCH UPSTAIRS IN THE CITY MAYOR'S CONFERENCE, CITY MANAGER'S

* This transcript was compiled from uncorrected Closed Captioning.