Aug 04, 2026 City Council Budget Work Session

[00:00:02]

GOOD MORNING AND WELCOME TO TODAY'S SPECIAL MEETING OF CITY COUNCIL.

[CALL TO ORDER]

LOVING GOD, WE GIVE YOU THANKS FOR THIS DAY AND WE GIVE YOU THANKS FOR THIS CITY AND FOR THE DIFFERENCE IT MAKES FOR SO MANY PEOPLE.

GIVE YOU THANKS FOR THIS COUNCIL AND OUR ADMINISTRATION AND ALL OUR DIRECTORS WHO'VE BEEN WORKING HARD, AND ALL THE EMPLOYEES THAT WORK HARD AND SOMETIMES REALLY HARD OVER THE WEEKENDS.

AND LORD, WE ASK THAT YOU GUIDE AND DIRECT OUR MEETINGS TODAY.

AND WE ASK ALL THIS IN JESUS NAME. AMEN. I PLEDGE ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA.

ONE NATION UNDER GOD. MAY I HAVE ROLL CALL, PLEASE? MAYOR WEST. MAYOR PRO TEM CRENSHAW.

ABSENT. COUNCIL. MEMBER. TURNER. HERE. PIKE. COUNCILMEMBER.

CRENSHAW. COUNCILMEMBER. TURNER. ABSENT. COUNCILMEMBER.

DARIO. COUNCILMEMBER HILLIARD. COUNCILMEMBER.

WILLIAMS AND COUNCILMEMBER SHERWOOD ABSENT. ALL RIGHT.

AND NOW, MR. CITY MANAGER, I'LL TURN THE MEETING OVER TO YOU.

[1. Transit Budget]

SO WE APPRECIATE THE OPPORTUNITY TO HAVE AN ADDITIONAL WORK SESSION TO REVIEW AND DISCUSS THE UPCOMING PROPOSED FY 2011 BUDGET.

WE'RE GOING TO HEAR THIS MORNING FROM OUR TRANSIT GROUP, AS WELL AS OUR LIBRARY GROUP, ON SOME POTENTIAL EFFICIENCIES AND COST SAVINGS THAT MAY HELP US IN THE COMING YEAR. SO WE'LL DO THAT FIRST ON THE AGENDA.

AND THEN WE'LL, WE'LL GO OVER KIND OF WHERE WE THINK WE'RE GOING TO END UP IN FY 26 AND THEN DISCUSS FY 27.

AGAIN, THE HOPE TODAY IS THAT WE GET STAFF, GET SOME CLEAR DIRECTION ON PRIORITIES WHAT WE WANT OUR FUND BALANCE TO BE IN THE GENERAL FUND AS WELL AS OUR PROPERTY TAX RATE.

AND THIS IS IMPORTANT BECAUSE IN A COUPLE OF WEEKS, WE'RE GOING TO PRESENT TO YOU THE ACTUAL FORMAL DRAFT BUDGET.

AND ALSO WE'LL ASK YOU TO VOTE ON A PRELIMINARY TAX RATE, PROPERTY TAX RATE.

AND THAT'LL HELP US FORMULATE WHAT'S GOING TO BE THE FINAL DRAFT BUDGET WHICH WILL BE PRESENTED.

FOR FINAL CONSIDERATION IN MID SEPTEMBER. SO AGAIN, ABOUT TWO WEEKS FROM NOW, WE'LL PRESENT THE DRAFT FY 2011 BUDGET, AS WELL AS ASK YOU TO VOTE ON THE PROPERTY TAX RATE.

I WILL POINT OUT THAT YOU CAN WHEN YOU SET THAT RATE ON AUGUST 18TH, YOU CAN ALWAYS GO DOWN, BUT YOU CAN'T GO UP. SO I JUST WANTED TO REMIND COUNCIL OF THAT.

SO BUT AGAIN, WE APPRECIATE THE OPPORTUNITY FOR TODAY'S ADDITIONAL WORKSHOP, WHICH SHOULD HELP US AS WE WORK TO CRAFT THE FY 2011 BUDGET.

SO AND I THINK WITH THAT, I WILL GO AHEAD AND ASK TO HAVE DEMI INGMAN, OUR DIRECTOR OF PLANNING AND COMMUNITY DEVELOPMENT, AND SHE IS GOING TO PROVIDE AN OVERVIEW OF THE TRANSIT SYSTEM.

AND THIS IS KIND OF A FOLLOW UP TO SOME RECENT DISCUSSIONS.

WE'VE HAD AN OVERVIEW OF THE SYSTEM, BUT ALSO SOME POTENTIAL EFFICIENCIES AS WE LOOK TOWARDS THE FY 27 BUDGET.

GOOD MORNING, MAYOR AND COUNCIL. TODAY, I'LL BE PRESENTING THE TRANSIT'S BUDGET AND PROPOSED SERVICE CHANGES AIMED AT IMPROVING EFFICIENCY AND SLIGHTLY REDUCING OPERATING COSTS. NEXT SLIDE PLEASE. OH, THERE WE ARE. THIS SHOW OR THIS SHOWS TRANSIT INCOMES AND EXPENSES FROM FISCAL YEAR 2021 TO PRESENT.

THE BLUE LINE SHOWS THE MONEY COMING IN. THE ORANGE LINE SHOWS THE BUDGET THAT WAS APPROVED, AND THE GREEN LINE SHOWS WHAT WAS ACTUALLY SPENT EACH YEAR, INCLUDING MAJOR EQUIPMENT AND OTHER CAPITAL PURCHASES.

PLEASE NOTE THAT FISCAL YEAR 26 FIGURES ARE PROJECTED OR PROJECTED.

YEAR END ESTIMATES 2026 REVENUES INCLUDE APPROXIMATELY $3 MILLION IN EXPECTED FEDERAL GRANT FUNDING THAT IS STILL AWAITING APPROVAL FROM THE FEDERAL TRANSIT ADMINISTRATION. NEXT SLIDE PLEASE. THIS SHOWS TRANSITS YEARLY OPERATING COSTS, WHICH HAVE REMAINED FAIRLY STEADY OVER THE PAST FIVE YEARS. SPENDING WAS LOWER IN 2021, LIKELY BECAUSE TRANSIT WAS STILL RETURNING TO NORMAL OPERATIONS FOLLOWING THE COVID PANDEMIC.

[00:05:04]

MOST OPERATING COSTS ARE RELATED TO EMPLOYEE WAGES AND BENEFITS.

ROLLING STOCK MAINTENANCE AND OTHER EXPENSES NEEDED TO PROVIDE DAILY TRANSIT SERVICE.

SO IN THAT SAME BREATH, I WOULD LIKE TO RECOGNIZE THAT OUR RECOGNIZE AND THANK OUR TRANSIT MANAGEMENT TEAM FOR DOING AN OUTSTANDING JOB OF KEEPING OPERATING COSTS RELATIVELY STABLE OVER THE PAST SEVERAL YEARS. THIS HAS BEEN ACCOMPLISHED DESPITE SIGNIFICANT INCREASES, INCREASES IN COST OF FUEL PARTS, SUPPLIES AND OTHER GOODS AND SERVICES. THEIR CAREFUL MANAGEMENT HAS HELPED US MAINTAIN CURRENT LEVELS OF SERVICE.

NEXT SLIDE PLEASE. THIS CHART REPRESENTS THE SAME INFORMATION REGARDING TRANSIT OPERATING COSTS BY PERCENTAGE EXCLUDING CAPITAL PURCHASES.

SO THIS IS JUST THE OPERATING COST. NEXT SLIDE.

CURRENTLY OPERATES TEN FIXED ROUTES MONDAY THROUGH FRIDAY, 6 A.M.

TO 9:30 P.M., AND ON SATURDAYS FROM 7:15 A.M.

TO 9:30 P.M. FIXED ROUTE USED THE FIXED ROUTES.

USE THE LARGE BUSSES AND SPECIAL TRANSIT. TRANSIT SERVICES USE THE ACCESSIBLE VANS.

WE ARE REQUIRED TO PROVIDE SPECIAL TRANSIT SERVICES FOR ELIGIBLE RIDERS UNDER FTA REGULATIONS.

STS SERVICE IS PROVIDED WITHIN THREE QUARTERS OF A MILE OF AN EXISTING FIXED ROUTE TO ENSURE WE REMAIN IN COMPLIANCE WITH FTA REQUIREMENTS AND THAT SERVICES RESERVED FOR ELIGIBLE RIDERS, I DO RECOMMEND IMPLEMENTING AN ANNUAL RECERTIFICATION PROCESS FOR ALL STS USERS.

NEXT SLIDE PLEASE. YOU'VE SEEN THIS MAP BEFORE.

IT SHOWS ALL TEN OF OUR ZIP ROUTES, FIXED ROUTES SERVING THE COMMUNITY.

NEXT SLIDE. IN THE 2021 OR IN 2025, BEAUMONT PROVIDED APPROXIMATELY 260 000 FIXED ROUTE RIDES AND 18,700 SPECIAL TRANSIT SERVICE RIDES.

SO AS THIS CHART SHOWS, OUR PARKDALE SOUTH 11TH SOUTH PARK ROUTES CARRIED THE MOST PASSENGERS, WHILE THE PINE, LAUREL AND REFINERY ROUTES HAD THE FEWEST.

NEXT SLIDE. AS PART OF THE FY 2027 BUDGET DISCUSSIONS, ZIP STAFF AND I HAVE IDENTIFIED SEVERAL OPPORTUNITIES TO IMPROVE SERVICE BY ADJUSTING ROUTES AND SCHEDULES WHILE REDUCING OPERATING COSTS.

THESE PROPOSED CHANGES ARE INTENDED TO MAKE THE MOST EFFICIENT USE OF OUR RESOURCES, WHILE CONTINUING TO PROVIDE THE RELIABLE SERVICE TO THE COMMUNITY.

WHILE WE FIRST PRESENTED THESE IDEAS TO CITY MANAGEMENT IN JUNE OF 2026, AND TODAY WE ARE BRINGING THEM TO CITY COUNCIL FOR DISCUSSION AND FEEDBACK AS PART OF THE BUDGET PROCESS. IF COUNCIL SUPPORTS MOVING FORWARD, THE NEXT STEP WOULD BE A 30 DAY PUBLIC COMMENT PERIOD, WITH PUBLIC NOTICES ISSUED NOT LATER THAN MID-AUGUST.

AFTER THAT COMMENT PERIOD, A PUBLIC HEARING WOULD BE HELD BEFORE THE PROPOSAL RETURNS TO COUNCIL FOR SEPTEMBER FOR CONSIDERATION IN SEPTEMBER.

IF APPROVED, THE SERVICE CHANGES WOULD TAKE EFFECT ON OCTOBER 1ST, ALIGNING WITH THE START OF THE NEW FISCAL YEAR.

NEXT SLIDE. SO THIS SLIDE IS BUSY. BUT IT COMPARES OUR CURRENT BUS ROUTES WITH THE PROPOSED ROUTE CHANGES.

THE MAP TO THE LEFT SHOWS THE ROUTES AS THEY OPERATE TODAY.

THE ROUTE SHOWN IN RED AND THE MAGNOLIA ROUTE SHOWN IN ORANGE.

EACH OPERATE A SEPARATE LOOP ROUTES. THE LAUREL AND NORTH 11TH ROUTES CURRENTLY TURN AROUND NEAR FRENCH ROAD.

THE MAP ON THE RIGHT SHOWS THE PROPOSED CHANGES, SO THE MAGNOLIA AND PINE ROUTES WOULD BE COMBINED INTO ONE CONTINUOUS LOOP CALLED THE MAGNOLIA PINE ROUTE. INSTEAD OF IT BEING SEPARATE INFINITY LOOPS, THEY'LL COMBINE INTO ONE.

THE SECOND CHANGE WOULD BE THE LAUREL AND NORTH 11TH ROUTES WOULD BE EXTENDED ALONG DELAWARE STREET TO DOWLEN ROAD.

CONTINUE NORTHEAST ON DOWLEN AND THEN TRAVEL ALONG THE SOUTHEAST FEEDER FEEDER ROAD BEFORE RECONNECTING WITH THE EXISTING ROUTE NEAR HARRISON AVENUE.

THIS WOULD BE RENAMED AS THE NORTH 11TH DOWLEN ROUTE.

THESE CHANGES WOULD GIVE RIDERS BETTER ACCESS TO JOBS, GROCERY STORES, SHOPPING, DINING AND ENTERTAINMENT.

THEY WOULD ALSO CREATE MORE OPPORTUNITIES TO TRANSFER BETWEEN ROUTES WITHOUT HAVING TO TRAVEL ALL THE WAY BACK DOWN TO THE DOWNTOWN DANNENBAUM TRANSFER STATION.

FOR SOME RIDERS, THIS COULD REDUCE A TWO TRIP JOURNEY TO ONE TRIP, SAVING TIME AND MAKING THE SYSTEM EASIER TO USE.

NEXT SLIDE. SO THE PROPOSED REALIGNMENT, AS JUST DISCUSSED, WOULD RESULT IN AN INCREASE OF MILEAGE BY 43.7 MILES.

THIS WOULD NEGATIVELY IMPACT THE BUDGET BY APPROXIMATELY $73,000.

NEXT SLIDE. THIS SHOWS SATURDAY RIDERSHIP IN 2025, DURING THE EARLY MORNING BETWEEN 7 A.M.

TO 815PAM. SORRY, 7 A.M. TO 8:15 A.M.. AND THE EVENING BETWEEN 5:45 P.M.

TO 9:30 P.M.. AS MENTIONED EARLIER, ZIP PROVIDED.

PROVIDED APPROXIMATELY 260 000 RIDES IN 2025.

OF THOSE, ABOUT 3800 RIDES OCCURRED DURING THESE SAID TIME PERIODS ON SATURDAYS.

[00:10:01]

TO 6 P.M.. THIS WILL REDUCE APPROXIMATELY 20,000 MILES PER YEAR, AND MAY RESULT IN AN ANNUAL SAVINGS OF APPROXIMATELY $160,000.

NEXT SLIDE. SO IN SUMMARY, THE PROPOSED MAGNOLIA, PINE, AND LAUREL ROUTE REALIGNMENTS WOULD INCREASE OPERATING COSTS.

HOWEVER, WHEN COMBINED WITH THE PROPOSED SATURDAY SERVICE MODIFICATIONS, THE OVERALL SERVICE OPTIMIZATION PLAN IS PROJECTED TO REDUCE OPERATING EXPENSES BY $91,000 IN FISCAL YEAR 2027. THE PLAN DOES IMPROVE THE EFFICIENCY OF THE TRANSIT SYSTEM WHILE ENHANCING CONNECTIVITY AND FOCUSING ON SERVICE DURING THE TIMES WHEN IT IS USED THE MOST. NEXT SLIDE. SO BEFORE I CONCLUDE, I WANTED TO SINCERELY THANK THE ENTIRE TEAM FOR THEIR DEDICATION AND SERVICE TO THE RESIDENTS OF BEAUMONT. THEIR HARD WORK, PROFESSIONALISM, AND COMMITMENT TO SERVING OUR COMMUNITY EVERY DAY DO NOT GO UNNOTICED.

SO I WANTED TO SEND A HEARTFELT THANK YOU TO THEM.

THANK YOU. YES. COUNCILMAN WILLIAMS. THANKS FOR THAT.

ON THE MAGNOLIA PINE. WHAT? BEING THAT IT COSTS MORE.

WHAT? WHY? WHAT'S THE THOUGHT PROCESS BEHIND COMBINING THOSE? THIS IS OUR GENERAL MANAGER CLAUDIA SAN MIGUEL.

IF WE CAN BRING THE MAP BACK. SO A COUPLE OF THINGS WITH THAT.

IF YOU CAN SEE ON YOUR CURRENT SITUATION. RIGHT NOW, THOSE ROOTS ARE VERY, VERY CLOSE TOGETHER AND AT SOME POINT IN TIME, THE BUSSES ARE OVERLAPPING SERVICE WITHIN, YOU KNOW, THREE, FOUR BLOCKS OF DISTANCE.

SO THIS IS SOMETHING THAT WE'VE BEEN DISCUSSING. AND BASED ON THE FACT THAT THE RIDERSHIP IS SO LOW, WE CAN PROVIDE ALMOST THE SAME EXACT SAME SERVICE.

BUT BUT COMBINED. SO THAT FREES UP SOME, SOME SPACE, SOME TIME FOR THAT BUS TO BE REPOSITIONED, BUT NOT THE EXACT SAME BUS. IT'S, IT'S A DIFFERENT BUS.

IT'S THE, THE LAUREL. SO THAT TIME AND EFFORT IS GOING TO BE INVESTED INTO LAUREL.

AND STRETCH SERVICE, WHICH IS SOMETHING THAT WE KEEP HEARING FROM SOME OF THE NEIGHBORS IN THAT AREA WHERE THEY HAVE TO TAKE 1 OR 2 BUSSES TO JUST GO AND DO GROCERY SHOPPING.

SO IT'S, IT'S TWO BIRDS THAT WERE TRYING TO GET WITH ONE STONE.

WE'RE BEING MORE EFFICIENT BY COMBINING RESOURCES AND MAXIMIZING WHAT WE'RE GETTING OUT OF THEM, WHICH IS YOUR, YOUR PAN AND YOUR MAGNOLIA AND BEING ABLE TO STRETCH SERVICE ON THE OTHER SIDE, WHICH IS YOUR LAUREL. SO WHY DOES IT COST MORE? WELL, BECAUSE WE'RE EXTENDING WITH THE PROPOSED. YOU'RE EXTENDING MILEAGE.

AND IF WE CAN GO TO THE OTHER SLIDE, IT SHOWS THE MILEAGE IS GOING TO BE RIGHT THERE. SO THE MILEAGE INCREASES BY ABOUT 43 MILES FOR THAT GIVEN DAY.

RIGHT. AND THAT'S, YOU KNOW, DEPENDING ON THE DAY WE'RE RUNNING, IT'S GOING TO INCREASE.

SO YOU INCREASE YOUR MILEAGE, YOU KNOW, THE OPERATING COST IS GOING TO INCREASE PRETTY MUCH.

THANK YOU. YES, SIR. COUNCILMAN TURNER THEN. COUNCILMAN DURYEA.

HOW MUCH HAS FUEL INCREASE? DO YOU HAVE A PERCENTAGE OR A ROUGH ESTIMATE? YES. LIKE KIND OF WHERE WE WERE COMPARED TO WHERE WE ARE CURRENTLY.

YES. SO LAST YEAR WE SPENT ABOUT 432,000. THIS YEAR WE'RE PROJECTED TO SPEND ABOUT 508. SO IT'S INCREASED BY ABOUT 50,000 OR SO.

YEAH. SO, SO JUST JUST THAT ALONE, WE'RE LOOKING AT AN INCREASE A YEARLY INCREASE IN ALMOST $50,000 OF FUEL.

CORRECT. AND YOU SAID IT WAS PROJECTED TO BE HOW MUCH THIS YEAR? 500 AND. ABOUT 508,000.

COUNCILMAN. YES. MOST OF THE FOLKS THAT THAT RIDE THE BUS. THIS IS LIKE THEIR ONLY MEANS OF TRANSPORTATION.

THESE NEW ROUTES, I WANT THEM TO HAVE AS LITTLE IMPACT ON THE PEOPLE THAT USE IT AS POSSIBLE.

I DON'T THEY SHOULDN'T BE ABLE. I DON'T WANT THEM TO NOT BE ABLE TO GO TO THE DOCTOR OR NOT BE ABLE TO GO SHOPPING.

AND ALSO WE GOT TO INFORM THEM OF THE NEW ROUTES.

SO IS THAT CORRECT? YEAH. IF YOU COULD GO TO.

[00:15:09]

WE WOULD ALSO BE POSTING FLIERS, SURVEYS ON THE BUSSES VANS.

WE WOULD ENGAGE CITY RPC, SOUTHEAST TEXAS REGIONAL PLANNING COMMISSION AND ALSO POSTING FLIERS AT HIGH RIDERSHIP.

BUS. BUS. SHELTER LOCATIONS TO TRY TO GET THE WORD OUT.

ALSO, OF COURSE AT HEADQUARTERS IN CITY HALL WHERE THEY BUY BUS PASSES.

OKAY. I JUST WANT TO LIKE I SAID, THESE FOLKS ARE ONLY WAY A LOT OF THEM.

THAT'S THE ONLY TRANSPORTATION THAT THEY HAVE. SO WE, WE DON'T WANT TO PUSH ANYBODY AWAY OR NOT GIVE THEM THEIR WHAT THEY'RE USED TO, YOU KNOW, GIVE THEM A WAY TO GET AROUND. SO AS LONG AS WE PUT THAT INFORMATION OUT AND IT'S NOT REALLY GOING TO AFFECT THE RIDERS, THEN I'M GOOD WITH THAT. SO THE ROUTE REALIGNMENT AS DISCUSSED ON HERE, WOULD ACTUALLY CONNECT MORE TO SHOPPING, DINING, ENTERTAINMENT AREAS, ALSO HEALTHCARE FRESH FOOD ACCESS, THOSE KINDS OF THINGS WITH THE HEB PLUS ON DOWLEN AND WHATNOT.

THE IMPACT OR THE MOST IMPACTFUL ONE WOULD LIKELY BE THE SATURDAY SERVICE REDUCTION.

BUT AGAIN, OUT OF FOCUSING ON THE FIXED ROUTES WE PROVIDED ABOUT 260 000 FIXED FIXED RIDES LAST YEAR WITHIN THOSE TIME FRAMES OF THE MORNING TIME, WHICH I THINK WAS 6 A.M.

OR 615 TO 830. AND THEN 545 TO 930 THERE WAS ABOUT 3800 RIDERS WITHIN THAT TIME FRAME. SO REGARDING IMPACT THAT WOULD HAVE AN IMPACT.

BUT IT WOULD ALSO PRODUCE A, A COST SAVINGS AND OPERATIONAL COSTS.

OKAY. AND IS THIS WE STILL HAVE THE STUDENTS BEING ABLE TO RIDE FREE IN THE SUMMERTIME WHEN SCHOOL IS OUT.

YEP. THAT'S STILL IN EFFECT. AND THEN THERE'S AN ITEM LATER TODAY IN THE REGULAR COUNCIL AGENDA ITEM NUMBER NINE.

RIGHT. COUNCILMAN HILLIARD THANK YOU COUNCILMAN.

YEAH. WELL THANK YOU. AND AGAIN, I'M GOING TO ASK, WHERE ARE WE ON THE ON THE WRAP PROGRAM FOR THE BUSSES, THE SELLING THE ARE WE ARE WE MOVING FORWARD? BECAUSE THAT COULD BE A REALLY BIG OFFSET. WE ARE, YOU KNOW, EVERY TIME WE GET IN CONTACT BY AN AGENCY OR A PROSPECTIVE VENDOR, WE ARE, YOU KNOW, LETTING THEM KNOW WHAT THEY NEED TO DO.

THERE'S THIS GROUP THAT PRETTY MUCH COMMITTED TO PUT A BUS WRAP ON EVERY VEHICLE.

SO THEY'RE WORKING WITH THEIR, YOU KNOW, TEAMS AND COMING UP WITH THE DESIGNS, BECAUSE I WAS A LITTLE CONCERNED ABOUT SOMEBODY BEING READY TO, TO PUT A WRAP ON EVERY SINGLE BUS. SO I ASKED THEM TO SEND THAT ART TO US SO WE CAN MAKE SURE WE'RE NOT TRYING TO ENGAGE ON SOMETHING THAT WE'RE NOT INTERESTED IN ENGAGING WITH, BUT THEY'RE CONFIDENT THAT IT'S GOING TO BE APPROVED.

SO I'M JUST WAITING FOR THAT ONE PHONE CALL, AND THEY'RE PRETTY MUCH READY TO PUT IN AN ADVERTISEMENT ON EVERY SINGLE BUS.

SO THAT'S GOING TO BE GREAT. SO IF THEY DO, WHAT ARE WE LOOKING AT AS FAR AS REVENUE? I'LL GET THOSE NUMBERS AND BRING THEM FOR THIS AFTERNOON BECAUSE I DON'T HAVE THEM WITH ME RIGHT NOW. AND ANOTHER QUESTION IS, HAVE WE THOUGHT ABOUT RAISING THE THE BUS FARES? I THINK THERE'S GOING TO BE AN INITIATIVE TO BE PRESENTED LATER ON.

THERE'S OPPORTUNITIES. WE ARE VERY COMPETITIVE.

I WILL SAY FOR AGENCIES, OUR SIZE, WHAT WE'RE CHARGING RIGHT NOW, THE OPPORTUNITY MIGHT BE OR NOT IN TRANSIT, FDA ALLOWS TO CHARGE UP TO TWICE THE AMOUNT. WE'RE ABOUT $0.50 SHORT OF THAT.

SOME OTHER AGENCIES WANT TO DO DIFFERENT THINGS, RIGHT.

YOU KNOW, THEY CHARGE BY MILE. THEY CHARGE BY, YOU KNOW, AREAS.

RIGHT. SO I UNDERSTAND WE'RE GOING TO BE BRINGING A FORMAL PRESENTATION ON THAT.

THE OPPORTUNITY IS GOING TO BE THERE AS FAR AS THE REGULAR FIXED ROUTE BUS, WE'RE VERY COMPETITIVE WITH THE REST, AGENCIES, COMMUNITIES OUTSIDE. SO I WILL NOT REALLY HAVE A RECOMMENDATION ON THAT.

PAT. TRANSIT. IT'S IT'S IT'S WHERE WE MIGHT HAVE AN OPPORTUNITY.

THANK YOU. AND MAYOR, IF I COULD ADD TO THAT, IT IS IMPORTANT TO POINT OUT THAT THE REVENUES FROM FARES IS A RATHER SMALL PROPORTION OF THE THE REVENUE TO OPERATE THE SYSTEM. AND SO THERE'S ALWAYS THE THERE'S ALWAYS THE RISK.

IF YOU RAISE FARES TOO MUCH, AS WITH ANYTHING, YOU DECREASE YOUR RIDERSHIP.

SO. BUT YOU CAN DECREASE THE AMOUNT OF FEDERAL FUNDING.

YES. COUNCILMAN CRENSHAW. ALL RIGHT. TINA, CAN WE PLEASE PUT UP THE EXCEL SPREADSHEET THAT WAS PROVIDED TO ME? WHEN I REQUESTED SOME BUDGET DOCUMENTS FROM TRANSIT? THERE'S A AN ASSET PURCHASE FOR 2026 FOR THREE OVER $3 MILLION.

[00:20:04]

IT WAS IN A MATCHING GRANT, I BELIEVE. OKAY. YEAH, WE RECEIVED A GRANT TO COVER THE BUSSES, ESSENTIALLY THE CAPITAL PURCHASE. OKAY. SO THAT HAPPENED PRIOR TO US.

YOU COULD GO BACK TO THE VERY FIRST SLIDE. YES, I CAN SHOW THAT.

BUSSES USUALLY TAKE ABOUT 18 MONTHS TO BUILD.

SO WHENEVER WE PLACE THE ORDER THAT WAS IN I THINK APRIL OF 25.

AND USUALLY WE ANTICIPATED THAT THIS WOULD IMPACT IN FISCAL YEAR 27 REGARDLESS, WE HAVE THE GRANT THERE.

IT'S JUST WAITING FOR THE DRAW DOWN TO DO IT, BUT ON THAT FIRST ONE, YOU CAN SEE THE REVENUES VERSUS THE ACTUALS.

IN THAT VERY TOP LINE 2026 END OF YEAR PROJECTIONS.

SO ACTUAL SPENT. WE ESTIMATE 9.9 MILLION. REVENUES TAKEN IN IS 9.9.

USUALLY WE WOULD TRY TO BUDGET THAT THOUGH. BUT WE ANTICIPATED DELIVERY OF THE BUSSES TO OCCUR.

FISCAL YEAR 27. SO I GUESS WHAT I'M TRYING TO TO FIGURE OUT HERE IS THAT IT LOOKS LIKE WE'RE FAIRLY CONSISTENT EVERY YEAR WITH AROUND A 6 MILLION, $6.5 MILLION BUDGET.

BUT ALL OF A SUDDEN FOR 2026, WE'RE AT 9.9 MILLION.

SO LET'S JUST SAY 10 MILLION. SO WE GO FROM 6.5 MILLION TO 10 MILLION THIS YEAR.

AND IT APPEARS THAT IT'S JUST THESE ASSET PURCHASE.

OKAY. SO I WANT TO THEN GO BACK TO WHERE DID THE 1.3 MILLION COME FROM THAT WE WERE TOLD IN A PREVIOUS BUDGET SESSION THAT THE CITY WAS OVER BUDGET FOR 2026 INSTEAD OF THE 4.5 MILLION WE WERE PROJECTED, WE'RE NOW OVER BUDGET 6.3 MILLION, AND THAT THE REASON WHY WE'RE OVER BUDGET IS EMPLOYEE BENEFITS AND TRANSIT.

AND THE TRANSIT PORTION OF THAT WAS 1.3 MILLION.

HOW DOES THAT WHAT WHAT WAS THE 1.3 MILLION? THAT WAS KIND OF A CULMINATION OF PRIOR YEARS, JUST NOT TRANSFERRING QUITE ENOUGH TO COVER TO MAKE IT UP.

SO WE'RE TRUING EVERYTHING UP IS WHAT IT, WHAT, WHAT IT'S DOING.

SO I JUST DON'T UNDERSTAND THAT OF THE 9.9 MILLION, IF WE GOT REVENUES, WHY ARE WE HAVING TO TRANSFER 1.3 MILLION OUT OF THE GENERAL FUND TO COVER WHAT YOU JUST SAID? IF WE GOT 9.9 MILLION IN REVENUE TO FULLY COVER THE BUDGET.

AGAIN, THIS ISN'T THIS ISN'T A QUESTION OF CURRENT.

IT'S A CULMINATION OF PRIOR YEARS. SO IT'S REALLY A FUN BALANCE QUESTION.

YEAH. CHRIS CAN YOU HELP WITH THAT? WHAT? WELL, I.

MEAN. I THINK IT'S. BECAUSE IF I'M CONFUSED I'M JUST GOING.

TO. YEAH. GUESS PEOPLE AT HOME ARE CONFUSED. I THINK THE BEST THING TO DO IS LOOK BACK OVER TEN YEARS, WHICH WE CAN CERTAINLY GET YOU THOSE NUMBERS TO SAY.

AND DEMI'S BROKEN IT DOWN BETWEEN OPERATING VERSUS CAPITAL BECAUSE IT IS A IT IS A LITTLE BIT MORE COMPLEX THAN A LOT OF THE FUNDS AND, AND, AND ACTIVITIES THAT WE DEAL WITH BECAUSE IT'S A COMBINATION OF FARES, A COMBINATION OF TEX-DOT DOLLARS, A COMBINATION OF FTA DOLLARS, A COMBINATION OF OPERATING DOLLARS, A COMBINATION OF CAPITAL EXPENSES, A COMBINATION OF ADDITIONAL GRANTS. AND SO IT CAN LAG FROM YEAR TO YEAR.

THE BEST WAY TO THINK ABOUT IT, THOUGH, I THINK IN TERMS IS, ALL RIGHT.

OPERATIONAL DOLLARS IS ABOUT RIGHT NOW WE'RE AT 6.5 MILLION.

AND SO WHAT DOES THAT LOOK LIKE OVER TEN YEARS WITH THE UNDERSTANDING THAT IT'S GOING TO IT'S GOING TO GO UP AND DOWN IF YOU'RE INCLUDING CAPITAL EXPENDITURES OR GRANTS. IN THE, IN, IF YOU START LOOKING AT IT.

THE OTHER THING IS IT'S THE FUNDS WE GET FROM FTA ARE ACTUALLY LAGGING.

SO WE GET THEM LATER. WE GET THEM BASICALLY AFTER THEY'VE ALREADY BEEN SPENT.

SO IT'S A VERY UNEVEN THING. AND THAT'S ONE OF THE THINGS IS ALSO, IF YOU LOOK BACK AT HOW MUCH WE TRANSFER, WE REALLY NEED TO TRANSFER ABOUT 1.9 MILLION A YEAR ROUGHLY TO MAKE SURE WE'RE GETTING THAT HITTING THE SIX SECOND,

[00:25:07]

SO CAN WE TINA, CAN WE PUT UP THE THE BUDGET DOCUMENT I WAS SENT? SO AFTER WE'VE DONE OF COURSE, THESE NUMBERS ARE ALWAYS CHANGING.

SO AFTER WE WENT BACK TO THE DRAWING BOARD, WENT WITH THEM A CUP TRANSIT A COUPLE MORE TIMES.

THAT ADDITIONAL TRANSFER IS DOWN TO 560,000 NOW.

SO WE'VE BEEN ABLE TO THEY'VE GOT MORE GRANTS IN THAT WE HAD THAT WE DIDN'T HAVE ACCOUNTED FOR.

SO THERE'S MORE GRANTS THAT WE'RE THAT WE'RE GETTING IN THAT WE'RE EXPECTING TO GET IN BEFORE THE END OF THIS FISCAL YEAR. AND SO WITH THAT BEING SAID, THAT ADDITIONAL TRANSFER IS ONLY THE 300 IS 560,000, WHICH MAKES IT 2.42 $2,460,000.

THAT WILL END UP TRANSFERRING TO TRANSIT THIS YEAR, 27 IS PROPOSED.

AS OF RIGHT NOW, IT'S STILL THE 1.9. OKAY, SO.

WE'LL GET THEM IN A POSITIVE FUND BALANCE. WHILE THAT'S GOOD NEWS, I WISH WE COULD HAVE LED WITH THAT, YOU KNOW, BECAUSE HERE I AM TRYING TO FIGURE OUT OUR FUND BALANCE FOR 2027 IS PROJECTED TO BE BELOW THE 20%.

AND, YOU KNOW, WITHOUT CUTTING SERVICES, WITHOUT YOU KNOW, HIRING FREEZE AND ALL THESE THINGS TRYING TO FIGURE OUT AND MAKE THE NUMBERS WORK.

SO WE GET BACK ABOVE THAT 20% YOU KNOW, NOW EUREKA, WE HAVE 800,000.

SO THAT'S GREAT. I STILL DON'T KNOW. WELL, AND I WILL.

SAY THAT 800,000 WHEN OR WAS GOING AND NOW IT'S BACK.

SO I GUESS THAT'S GOOD. WHAT AND DO WE CAN WE GET THE EXCEL.

MR. CRENSHAW? I WILL SAY TOO, ALSO THAT THE PROJECTIONS THAT WE'VE PRESENTED FOR THE FY 27 BUDGET HAS ALWAYS HAD JUST 1.9 TRANSFER TO TRANSIT.

NOW, 26 WAS DIFFERENT. CORRECT. SO AND WE WERE BEEN ABLE FORTUNATELY TO REDUCE THAT NOW.

SO THAT'S GREAT. SO NOW 27 HAS ALWAYS BEEN AT THE 1.9.

IT'S SAFE TO SAY OUR BUDGET SHORTFALL FOR 2026 IS NOW PROJECTED TO BE.

IT WAS 6.3. I THINK THE LAST NUMBER WE SAW. SO 800 OFF OF THAT, WE'RE NOW AT 5.5.

WELL THE NUMBER AMY. THE NUMBERS HAVE BEEN UPDATED IN THE IN THE NUMBERS THAT WE'RE GOING TO PRESENT LATER TODAY.

BEEN UPDATED. OKAY. SO THE IT'S TECHNICALLY WE'RE PROJECTING AT 4.5.

OH WOW. ALL RIGHT. MOVE IT IN THE RIGHT DIRECTION.

IT LOOKS LIKE AM I, AM I NOT GOING TO GET THAT EXCEL UP THERE? YEAH. WHICH FILE ARE YOU REQUESTING? THE ONE THAT WAS.

EXCEL SPREADSHEET I EMAILED YOU. THAT'S NOT IT.

IT WAS LIKE A IT HAD IT BROKEN DOWN. OH. I'M SORRY.

I'M SORRY. OH, GOOD. IT'S UP TO YOU.

I GOT A QUESTION WHILE WE WAIT. OKAY. CHRIS, WHAT I WOULD LIKE TO KNOW.

I KNOW WE SAID 1.3 MILLION IN PRIOR YEARS. YOU DON'T HAVE TO ANSWER RIGHT NOW ON THE SPOT, BUT I LIKE TO ANSWER AN EMAIL. WHAT PRIOR YEARS CAN WE BE SPECIFIC? AND WHO IS RESPONSIBLE OR IN CHARGE THOSE YEARS LIKE BECAUSE SAM PRIOR YEARS, THAT'S IN GENERAL, BUT I WANT TO I WANT TO ACTUALLY BE SPECIFIC BECAUSE WE GO OVER THIS BUDGET EVERY YEAR.

AND I KNOW YOU JUST BECAME THE CITY MANAGER, BUT I WOULD LIKE TO KNOW WHAT ARE THESE PRIOR YEARS, THIS MONEY WASN'T TRANSFERRED EFFICIENTLY. OKAY.

WE'LL GET THOSE FOR YOU. COUNCILMAN. THAT'S WHAT YOU WANTED? YES. SO IF WE GO OVER TO THE 2026, PLEASE SCROLL THAT WAY TO THE RIGHT.

ALL THE WAY. AND THEN CAN WE COME DOWN A LITTLE TO SEE THE BOTTOM NUMBERS.

OKAY, GREAT. THERE WE GO. THE 03,017,000 WAS BUSSES THAT WE APPROVED IN 2024 THAT WE JUST NOW REALIZED, OKAY.

AND IS 100% OF THE 317 MILLION FUNDED BY NON BEAUMONT FUNDS.

SO WE GOT THE GRANT THAT'S 2.8 FOR THE LOW NO EMISSIONS.

THAT WAS AN INJECTION OR AN ADDITIONAL ONE, NOT A FORMULA.

AND THEN WE ALSO HAVE THE 5339 FISCAL YEAR 24 THAT IS STILL BEING REVIEWED BY FTA.

ONCE THAT'S APPROVED, THAT WILL COVER THE SHORTFALL OF THAT AND IT WILL LEAVE APPROXIMATELY 2000, WHICH SHOULD BE COVERED WITHIN THE EXISTING TRANSIT BUDGET.

[00:30:01]

AND THEN TARIFFS HAPPENED. WE HAD TO WORK WITH FTA FOR A LONG TIME TO SCALE THAT PROJECT DOWN FROM FIVE BUSSES TO THREE BUSSES TO TO GET A NUMBER THAT, THAT WORKS WITH OUR, OUR EXISTING GRANTS.

OKAY. AND OF THIS SPREADSHEET THAT WAS PROVIDED TO ME BY TRANSIT, WHERE IN THESE NUMBERS IS THE OVERAGE THAT WE WENT OVER BUDGET FOR 2026 THAT REQUIRED THE FUND TRANSFER OF 1.3 MILLION THAT WE NOW HAVE DECIDED IS ONLY 550,000 IS THERE BECAUSE IT.

I'LL HAVE TO DEFER TO FINANCE ON THAT ONE. I KNOW THAT THERE WAS YOU KNOW, I THINK BRIDGET COVERED IT EARLIER.

THERE WAS SOME TRUING UP OF OR. I DON'T SEE WHERE IN THESE NUMBERS THAT WERE PROVIDED TO ME WHERE I WAS LOOKING FOR 1.3 MILLION, BUT LET'S JUST SAY IT'S 550,000. I DON'T SEE WHERE IN THESE NUMBERS THERE WAS THAT MUCH OF AN INCREASE.

IT ACTUALLY LOOKS LIKE WE WENT DOWN FROM 2025, WHICH.

SO THE MAIN, THE THE MAIN THING THAT HAPPENED WAS IN 24, THE FEDERAL FROZE THE FUNDS.

SO THERE FOR A WHILE WE DIDN'T RECEIVE. WE DIDN'T RECEIVE THE GRANTS IN. 24.

SO THAT WENT OVER TO. 25 SO OF COURSE, THAT MAKES.

25 NEGATIVE. WELL, THEN. 25 STILL, WE WERE A LITTLE.

NOT EVEN MORE EXPENDITURES THAN THAN REVENUES.

AND WE DIDN'T INCREASE THAT TRANSFER IN. 25 SO THAT THEREFORE, WE'RE MAKING IT UP IN.

26 TO MAKE SURE THAT FUND BALANCE IS GOOD. SO THERE WAS A THERE WAS A MISSED TRANSFER IN 25 THAT WE SHOULD HAVE DONE A LITTLE BIT MORE OF, BUT IT ALL STARTED IN 24. MISS TRANSFER. NOT A MISS TRANSFER.

I'M NOT. THAT'S WHAT I'M SAYING. WE JUST DIDN'T INCREASE THAT TRANSFER IN 25 TO COVER THAT FUND BALANCE.

SO THEREFORE IT BLED OVER INTO 26. SO WE'RE MAKING IT RIGHT IN.

26 BY INCREASING THAT TRANSFER. SO ARE YOU BASICALLY.

SAYING WE DIDN'T REFLECT SOMETHING ON OUR BOOKS IN 25 THAT MADE THE BUDGET LOOK BETTER IN 25.

AND WE HAD TO ACCURATELY REFLECT IT IN 26, WHICH IS WHAT CAUSED THE SPIKE IN OUR I'M SAYING TRANSIT DID COME OUT OF 25 AND A NEGATIVE IN A NEGATIVE FUND BALANCE.

AND WE ARE CORRECTING THAT IN 26 SO THAT THEY'RE NOT IN A NEGATIVE FUND BALANCE.

THAT'S WHAT I'M SAYING. I GOT YOU. AND WHAT CAUSED THE NEGATIVE FROM.

24 NOT RECEIVING 20 BLED OVER. IT STARTED IN 24 AND MAYBE EVEN 23 WHERE THOSE FUNDS DIDN'T COME IN.

AND THEN IT CARRIED OVER INTO THE NEXT FISCAL YEAR.

THE FUND BALANCE IS A CULMINATION OF PAST YEARS.

OKAY, SO IT CONTINUES. SO I GUESS THE OVERALL QUESTION THEN IS, IS THIS MONEY THAT BEAUMONT TAXPAYERS ARE PAYING TO MAKE THAT FUND RIGHT? OR IS THIS JUST AN ACCOUNTING TECHNIQUE THAT IS BALANCING THESE ACCOUNTS WHERE WE'RE ACTUALLY GOING TO BE RECEIVING FEDERAL REIMBURSEMENTS TO MAKE UP FOR THAT MONEY THAT'S COMING OUT OF OUR GENERAL FUND? THE ANSWER THAT HONESTLY, PROBABLY A LITTLE BIT OF BOTH. WE DO HAVE GRANTS THAT OF COURSE, THAT SUPPORT THAT FUND AND, AND SUPPORT MAJORITY OF THE EXPENDITURES, BUT THE GENERAL FUND ALSO SUPPORTS THAT FUND.

SO AND THAT'S WHAT THAT TRANSFER IS FOR. SO WE WILL ALWAYS, THE GENERAL FUND WILL ALWAYS TRANSFER INTO THE TRANSIT FUND AS LONG AS WE HAVE IT.

SO AND THAT NUMBER CHANGES EACH YEAR. SO IT DEPENDS ON WHAT THOSE EXPENDITURES AND REVENUES ARE EACH YEAR.

SO THAT NUMBER WILL CONTINUOUSLY CHANGE. OKAY.

AND LATER IN THIS PRESENTATION OR LATER TODAY, WE'RE GOING TO FIND OUT THE DETAILS ABOUT WHAT THE 550,000 THAT INCREASE 2026 FROM THE 1.9 MILLION TO THE 2.4 MILLION. WE'RE GOING TO FIND OUT WHAT THAT 500,000 WAS.

CORRECT. OKAY. YES. THAT'S THE WHOOPS. OKAY. WELL, I'LL RESERVE MY FURTHER QUESTIONS ABOUT THAT TILL LATER IN THE PRESENTATION.

THANK YOU. COUNCILMAN CRENSHAW. ANYBODY ELSE RIGHT NOW.

THANK YOU DEBBIE. ALL RIGHT. THANK YOU GUYS.

ARE YOU READY? YES. OKAY. ALL RIGHT. SO NEXT UP.

[2. Review possible service changes to the Library System]

AND THESE ARE JUST DISCUSSION POINTS. DON'T HAVE TO MAKE DECISIONS TODAY.

[00:35:01]

AND WE HAVE PAUL EADY, OUR LIBRARY ADMINISTRATOR, WHO IS GOING TO PRESENT MAYOR.

COUNCIL. THANK YOU FOR ALLOWING US TO BE HERE.

I ALSO HAVE DOCTOR NATHANIEL RAMOS WITH ME TODAY.

AND AS MR. BOONE SAID, THESE ARE WHAT HE CAME TO US AND SAID, CAN YOU PUT TOGETHER SOME POSSIBLE SERVICE REDUCTIONS FOR THE LIBRARIES IN 2027? AND WE WANTED TO BE FAIR OVER ALL OF THOSE SCENARIOS, FROM MINOR TO NOT MAJOR, BUT FURTHER UP THE CHAIN CLOSING THINGS ON DOWN THE LINE. SO THE, WHAT YOU WILL SEE HERE TODAY REFLECTS THOSE FIVE SCENARIOS THAT WE'VE COME UP WITH.

THE FIRST THING I WANTED TO SAY IS THAT IF YOU'LL SEE THIS FIRST SLIDE HERE, YOU WILL SEE GO AHEAD.

THERE YOU GO. OUR, OUR LITTLE LOGO DOWN IN THE BOTTOM RIGHT HAND CORNER.

SEPTEMBER 16TH IS OUR 100TH ANNIVERSARY YEAR.

SO WE'RE GOING TO BE HAVING A SMALL, HOPEFULLY LARGER, BUT GATHERING AT THE TYRRELL HISTORICAL LIBRARY.

BUT THAT IS OUR LOGO FOR THIS 100TH YEAR STARTING IN SEPTEMBER.

SO I JUST WANTED TO START WITH THAT. THANK YOU.

NEXT SLIDE PLEASE. A LITTLE BIT OF DESCRIPTIVE STATISTICS FOR YOU.

WE DO HAVE FIVE PHYSICAL BRANCHES AND A LITERACY PROGRAM THAT WE RUN FOR THE LIBRARY SYSTEM.

WE HAVE 51. IT DEPENDS ON THE TIME FRAME, BUT 51 TOTAL STAFF POSITIONS, 23 FULL TIME AND 28 PART TIME.

OF THOSE POSITIONS RIGHT NOW, WE HAVE THREE THAT ARE CURRENTLY FROZEN BY THE CITY.

ONE IS A FULL TIME POSITION AND TWO ARE PART TIMES.

THOSE PART TIMES ACTUALLY ARE AT ONE BRANCH. SO WE ARE TAKING OTHER PART TIMERS FROM OTHER BRANCHES TO FILL IN AT THE JOHNS LIBRARY, ACTUALLY IN THE SOUTH PART OF TOWN. THE CURRENT LIBRARY HOURS DEPEND ON THE BRANCH.

OUR MAIN LIBRARY AND THE LIBRARY ARE ONLY OPEN MONDAY THROUGH FRIDAY, AND WE'RE ONLY OPEN FROM 9 TO 6.

THE MILLER, WILLARD AND JOHNS LIBRARIES ARE OPEN FROM NINE IN THE MORNING UNTIL EIGHT AT NIGHT, MONDAY THROUGH THURSDAY, AND THEN 9 TO 6 ON FRIDAY AND SATURDAY.

THE LITERACY CENTER THAT WE, WHICH IS IN THE MAIN LIBRARY.

YOU NOTICE THERE ARE SOME 11 HOUR DAYS IN THERE.

WE HAVE SEVERAL CLASSES THAT RUN AT NIGHT, ESL, GED, THOSE TYPE OF CLASSES.

SO I PUT THOSE IN AT 11. AND LIKE I SAID, THE ONLY THREE THAT ARE OPEN ON SATURDAY MILLER, WILLARD AND JOHNS. NEXT SLIDE PLEASE. GO BACK ONE.

CAN YOU GO BACK ONE. OH, THERE IT IS. THANK YOU.

IT JUST TAKES A WHILE. SO OUR OPTION ONE THAT WE CAME UP WITH IS SOMETHING THAT WE FELT WOULD NOT IMPACT AS MUCH THE LIBRARY SYSTEM. THIS SUMMER. I MAYOR AND I WERE TALKING THE OTHER DAY AND HE WAS REALLY COMPLIMENTING US ON WHAT WE'VE BEEN DOING AND THE LIBRARY SYSTEM OVER THE SUMMER IN AND THE LAST SEVERAL MONTHS HAS REALLY PICKED UP AND IT'S SERVICE TO THE COMMUNITY.

OUR SUMMER PROGRAM JUST WAS PHENOMENAL. THE STAFF OF THE LIBRARIES DID A WONDERFUL JOB.

SO REDUCING LIBRARY HOURS. CLOSE THE LIBRARIES WILLARD, MILLER AND JOHN'S FOR TWO HOURS EACH DAY, OPENING AT TEN AND CLOSING AT SEVEN. TALKING TO STAFF THOSE HOURS ARE THE LEAST USED OF THE LIBRARY SYSTEM. USUALLY WE DO NOT HAVE A LOT OF PEOPLE WALK THROUGH THE DOOR FROM 7 TO 8 P.M.

AND SOME LIBRARIES, EVEN 6 TO 8 P.M.. BUT AS A SERVICE ORIENTED PART OF THE CITY, WE DO OFFER OUR SERVICES ALL THROUGHOUT THE TIME WE'RE OPEN. SO CURRENT DAYS, MONDAY THROUGH FRIDAY FROM MAINE, WE WOULD LEAVE THAT AS PROPOSED HOURS.

MILLER, WILLARD AND JOHNS. WE WOULD CHANGE FROM 10 TO 7 MONDAY THROUGH THURSDAY AND FRIDAY, 10 TO 6 AND SATURDAY HALF A DAY FROM 10 TO 2.

THIS WOULD SAVE MONTHLY ABOUT 52 HOURS PER BRANCH.

SO WE'RE LOOKING AT IF YOU CAN GO TO THE NEXT SLIDE FOR ME, PLEASE.

[00:40:08]

AND THESE ARE BASED ON PART TIME HOURS. THAT WAS THE DIRECTION FOR MR. BOONE WOULD BE TO WORK THROUGH THE PART TIME HOURS.

SO ABOUT $18,720 A YEAR IN SAVINGS ON PART TIME SALARIES.

IT EQUATES BASICALLY TO TWO PART TIME REDUCTIONS PER LIBRARY.

ONE OF THE THINGS, LIKE I SAID, WE ARE MOVING A LOT OF OUR STAFF TO COVER AT JOHNS RIGHT NOW.

SO WE ARE REDUCED SOME OF THOSE BRANCHES ALREADY.

REDUCED HOURS WOULD DECREASE EXPENDITURES FOR OTHER COSTS SUCH AS ELECTRICITY, WATER, THINGS LIKE THAT.

WHAT I WANT TO EMPHASIZE IS THAT ANY OF THESE OPTIONS ARE VARIABLE.

IT DOESN'T HAVE TO BE FROM 10 TO 7. IT CAN BE FROM 9 TO 7 OR AROUND.

SO DEPENDING ON WHAT COUNCIL WOULD LIKE IF THERE ARE ANY OF THESE OPTIONS TAKEN.

SO THERE ARE VARIATIONS TO THIS THAT WE CAN WORK THROUGH ADMINISTRATIVE STAFF CONSENSUS.

AND PEOPLE HAVE ASKED ME WHY SATURDAY? WELL, I HAD A MEETING THE OTHER DAY AND THE CONSENSUS WAS THAT ONE LIBRARY MIGHT REALLY, REALLY, REALLY BE BUSY ON TUESDAY.

ANOTHER 1ST MAY BE REALLY, REALLY BUSY ON THURSDAY.

AND BUT EVERYBODY WAS IN CONSENSUS THAT SATURDAY SEEMED TO BE A SLOW DAY FOR US.

SO IF WE WERE THINKING ABOUT CLOSING HALF A DAY, CONSENSUS OF STAFF WAS SATURDAY.

SO THAT SAVINGS PER MONTH ON OUR FIRST OPTION IF YOU WANT TO GO AHEAD.

ANY QUESTIONS ABOUT THAT BEFORE I GO ON. OKAY.

OPTION TWO FACILITY REDUCTIONS. THESE ARE A LITTLE HARDER BECAUSE WE'RE TALKING ABOUT TAKING AWAY A SERVICE.

NOW THE VERY FIRST OPTION TWO HERE IS RETOOLING THE MAUREEN GRAY LITERACY CENTER.

IF YOU KNOW WHAT THE MAUREEN GRAY LITERACY CENTER IS, WE OFFER GED.

ASVAB CITIZENSHIP ALL DIFFERENT TYPES OF TRAININGS TO THE PUBLIC.

IN THIS FACILITY RIGHT NOW, THE FULL TIME POSITION FOR OUR LITERACY DIRECTOR, LITERACY MANAGER IS THE FROZEN FULL TIME POSITION. WE JUST HAD OUR DIRECTOR THERE RETIRE RIGHT AT THE TIME FOR FREEZING POSITIONS.

SO THE FULL TIME, IF WE JUST RETOOLED WHAT OUR IDEA IS WE WANT TO RETOOL THIS BASICALLY AND BE CLOSED FOR MAYBE SIX MONTHS OR SO AND RETOOL IT.

OUR FOCUS HAS BEEN ON ADULT LITERACY, ESL GED ON DOWN THE LINE.

WORKING WITH OTHER STAFF MEMBERS, WE WOULD LIKE TO INCREASE THIS TO FAMILY LITERACY, FINANCIAL LITERACY, TECHNOLOGY LITERACY ON DOWN THE LINE. WE WOULD LIKE TO RETOOL THE.

MAUREEN GRAY LEAVE THE FULL TIME POSITION VACANT UNTIL WE CAN COME BACK WITH A VIABLE OPTION HERE FOR A RETOOLED LITERACY CENTER. WE RETAIN. EXCUSE ME, ONE PART TIME LITERACY INSTRUCTOR.

WE WOULD ACTUALLY LIKE TO RAISE THAT TO $16 AN HOUR FROM 12.

AND THAT WAY WE RETAIN SOME OF THAT KNOWLEDGE IN THE LITERACY CENTER.

SHE THE LADY THAT'S IN THE POSITION NOW SHE'S VERY TALENTED, VERY GOOD.

AND WE WOULD LIKE TO RETAIN HER. WE DO ALSO HAVE A PART TIME POSITION THAT WOULD BE ELIMINATED.

SO THE NET ANTICIPATED SAVINGS FOR ONE YEAR IN RETOOLING, IF IT TOOK US ONE YEAR, WOULD BE $107,232.

SO AS I SAID WITH THE RETIREMENT BUT IF WE CAME BACK IN SIX MONTHS AND SAID WE HAVE A PLAN, THIS IS WHAT WE WOULD LIKE TO DO, THEN WE WOULD LOOK AT RESTORING LITERACY.

YES, MA'AM. WHAT'S THE PARTICIPATION IN THE LITERACY PROGRAM LIKE? WHAT'S THE PARTICIPATION? WELL, THIS IS RIGHT NOW, THIS IS INTERESTING TO US BECAUSE WE HAVE SEVERAL PARTNERS.

OUR BIGGEST PARTNER IS REGION FIVE AND REGION FIVE.

[00:45:03]

SO OUR NUMBERS IN THAT AREA HAVE BEEN DROPPING.

AND IT'S THE SAME WITH OUR STAFF. AND THAT'S THE REASON WE WOULD LIKE TO RETOOL.

WE THINK WE CAN REFOCUS AND MOVE THE NEEDLE BACK UP AGAIN TO SERVE MORE PEOPLE.

THANK YOU. ANY OTHER QUESTIONS, COUNCILMAN HILLIER? DO WE CHARGE FOR THOSE SERVICES? NO. WHAT ABOUT.

DO WE CHARGE PEOPLE TO RENT HALL? RENT OUT SPACE AND OR TO USE SPACE IN OUR LIBRARY AT ALL? WE DO. OKAY. OUR MEETING SPACES ARE AT $25 AN HOUR.

OKAY. HERE, A YEAR OR SO AGO, IT WAS TEN, BUT WE RAISED IT TO 25.

THAT'S THE CHEAPEST YOU CAN GET. EVEN MOVING FROM 10 TO 25 IS STILL THE CHEAPEST PLACE IN TOWN THAT YOU CAN RENT.

SO DO WE WANT TO BE THE CHEAPEST PLACE IN TOWN? KNOW, AND WE'VE TALKED ABOUT RAISING THAT AGAIN.

I DID. I THINK PRESENT THAT. SO NOW DO WE HAVE A COUNT LIKE WHICH LIBRARIES ARE USED THE MOST.

WOULD IT BE MILLER. THE MILLER LIBRARY IS THE MOST USED.

IT REALLY DEPENDS ON THE TIME AND THE DATE. THE MONTH, BUT IT'S USUALLY.

MILLER. WHAT DO YOU USE? SORRY. GO AHEAD. SO THE MILLER LIBRARY BY CIRCULATION IS THE BUSIEST LIBRARY IN THE CITY.

IT DOES PROBABLY 2 OR 3 TIMES WHAT OTHER LIBRARIES DO.

THEN IT'S THEODORE JOHNS. AND THEN EVERYONE FOR OUR ELMO, WILLARD AND MAIN ARE LIKE NECK AND NECK.

BUT CERTAIN THINGS LIKE COMPUTER USAGE WHILE MILLER IS STILL AT NUMBER ONE, DOWNTOWN IS RIGHT UP THERE.

SO DEPENDING ON WHAT SPECIFICALLY WE'RE LOOKING AT, THERE'S DIFFERENT METRICS TO KIND OF SAY, OH, WELL, THIS LIBRARY, LIKE RC MILLER AND MAIN ARE A LITTLE BIT MORE COMPUTERS OR COMPUTERS ARE A LITTLE BIT BUSIER.

SO YEAH, IT JUST KIND OF DEPENDS ON WHAT WE'RE LOOKING AT.

WELL, HAVE WE, HAVE WE LOOKED AT, AT REDUCING THE HOURS AT THE SLOWER LIBRARIES? WHAT WE'RE TRYING TO DO IS KEEP IT CONSISTENT ACROSS THE ENTIRE LIBRARY SYSTEM AND THAT, YES, WE COULD DO THAT. WE COULD LOOK AT REDUCING THE HOURS THAT THE BRANCHES THAT ARE USED LEAST, BUT WHAT WE HAVE SEEN IN AND FROM MY EXPERIENCE IS THAT IF YOU HAVE DIFFERENT LIBRARY HOURS AT ALL THESE DIFFERENT LIBRARIES, PEOPLE ARE CONFUSED NOW.

THEY'LL, THEY'LL LEARN EVENTUALLY, BUT YOU'RE, I'M ALWAYS GOING TO GET A PHONE CALL WHILE I WAS OVER AT THE JOHN'S AND IT WAS CLOSED UNTIL 10:00, BUT OVER HERE WAS OPEN AT NINE OR ON DOWN THE LINES.

I REALIZE THAT CHANGE IS HARD, BUT SOMETIMES CHANGE IS NECESSARY.

THAT IS TRUE. YES, SIR. SO IF WE'VE GOT LIBRARIES THAT ARE BEING USED TWICE OR THREE TIMES AS MUCH AS OTHERS, IT WOULD MAKE SENSE TO CLOSE THE OTHER ONES DOWN EARLY RATHER THAN PAY THE ELECTRIC AND THE WATER AND, AND THE SALARIES OR THE, THE, THE PAY AT THESE LIBRARIES THAT AREN'T BEING USED.

AND PEOPLE WILL CONFORM TO WHATEVER WE DO. IT'LL BE HARD AT FIRST, BUT PEOPLE WILL CONFORM.

YES, SIR. AND WE, LIKE I SAID AT THE VERY FIRST, THIS IS ALL OF THIS IS VARIABLE.

WE CAN CHANGE. THESE ARE NOT LOCKED IN AS OPTIONS.

WE CAN CHANGE WHATEVER WE NEED TO. OR THEY CAN DRIVE TO THE LIBRARIES THAT ARE OPEN LATER.

I'LL GIVE YOU AN EXAMPLE. WHEN WE RENOVATED THE MILLER LIBRARY IN 2012, ALL OF THE OTHER BRANCHES REALLY SAW AN INCREASE IN THE AMOUNT OF TRAFFIC AT THEIR LIBRARIES. SO WE DID SEE MOVEMENT TO THE OTHER LIBRARIES.

THANK YOU. COUNCILMAN. SO IF WE DO THAT, WE'RE GOING TO HEAR WHAT I HEAR FROM MY CONSTITUENTS ALL THE TIME.

I BET THAT LIBRARY IN THE WEST END IS STILL OPEN.

THAT'S HOW THEY'RE GOING TO TAKE IT. IF WE HAVE ONE LIBRARY OVER THERE ON DOWLING ROAD THAT'S OPEN MORE HOURS THAN THE JOHNS OR THE WILLARD, THAT'S THAT'S MY PHONE GOING TO BE BLOWING UP BECAUSE OF THAT.

AND THAT'S THAT'S WHERE THEY'RE GOING TO TAKE IT BECAUSE I HEAR THAT EVERY DAY.

I BET IT'S NOT HAPPENING IN THE WEST END. I BET IT'S NOT HAPPENING IN THE WEST END.

SO WE WE'RE GOING TO JUST HAVE TO BE FAIR. AND I DON'T I DON'T THINK IT WOULD BE A GOOD IDEA TO HAVE DIFFERENT HOURS FOR DIFFERENT LIBRARIES.

[00:50:03]

YEAH. YES. COUNCILMAN TURNER. YEAH. I DON'T I DON'T THINK THE COUNCILMAN WAS BEING DISINGENUOUS.

HE'S LOOKING AT IT FROM AN EFFICIENCY STANDPOINT.

I DO UNDERSTAND THAT. BUT I DO ALSO UNDERSTAND WE GOT TO FIGURE OUT A WAY TO TRY TO MAKE IT AS EQUITABLE AS POSSIBLE WITHOUT INTERRUPTIONS ACROSS THE CITY.

BECAUSE, YOU KNOW, I DO KNOW I KIND OF GREW UP OVER THERE IN THE NORTH END AREA.

AND I KNOW A LOT OF PEOPLE DO WALK TO THAT LIBRARY FROM ADA AND PLYMOUTH VILLAGE APARTMENTS.

SO, YOU KNOW, I JUST WOULD BE OPTIMISTIC OF, YOU KNOW, JUST THE EFFICIENCY TO BE ACROSS THE BOARD, EVEN THOUGH I DO UNDERSTAND THAT THIS IS FINANCIALLY DRAINING ON US, FIGURE OUT A WAY THAT WE CAN KIND OF BE EFFICIENT SEEING STRAIGHT ACROSS THE BOARD, EQUAL WITH EVERYBODY. BUT I DO TOTALLY UNDERSTAND WHY COUNCILMAN BROUGHT THAT UP FROM A FINANCIAL STANDPOINT.

YEAH. AND ONE THING THAT ISN'T NECESSARILY REFLECTED IN STATISTICS IS, FOR EXAMPLE, OUR ELMER WILLARD LIBRARY.

IT HAS INDIVIDUAL LIKE OFFICES OR ROOMS THAT YOU CAN THAT AN INDIVIDUAL CAN COME IN AND STUDY AT.

RIGHT. SO THEY'RE ALMOST ALWAYS FULL. NOW, FOR SOMEONE WHO MAYBE WANTS HAS TELEWORK OR IS DOING JOB INTERVIEWS OR WORKING ON THEIR RESUME OR DOING ANY OF THOSE THINGS, WHICH IS DEEPLY IMPACTFUL.

THAT MAY NOT BE REFLECTED IN THE STATISTICS, BUT IT ALSO IS SOMETHING THAT IS DEEPLY IMPACTFUL FOR, FOR THEM, RIGHT? SO IF SOMEONE'S LIKE TRYING TO GET A NURSING DEGREE AND THEY NEED TO SIT DOWN, SIT DOWN STUDY, THAT'S ONE OF THE ONLY LIBRARIES THAT HAS THAT PARTICULAR SERVICE WHERE YOU CAN GO IN AND USE IT.

SO THERE'S CERTAINLY FROM AN EFFICIENCY STANDPOINT, CUTTING HOURS IS DEFINITELY ONE OF THOSE THINGS THAT COULD BE DONE.

BUT ALSO EACH ONE OF THESE LIBRARIES HAS THEIR OWN LITTLE CONTRIBUTION THAT IT'S VERY HARD TO REPLACE BECAUSE WHERE ARE YOU GOING TO GO IN THE CITY TO WORK ON THAT? WELL, MAYBE A COFFEE SHOP, BUT THE TRADE OFF IS THE LIBRARY IS THE PLACE WHERE YOU CAN AND YOU HAVE ALL THE RESOURCES YOU MIGHT NEED.

INTERNET. WE HAVE ALL THE BOOKS THAT YOU COULD NEED FOR ANY WORKFORCE DEVELOPMENT STANDPOINT.

WE HAVE ALL THOSE RESOURCES IN ONE PLACE, AND THEN THOSE PEOPLE, AS THEY GO UP, THEY GET THEY GET BETTER HOUSING.

THEY GET THEY BUY BIGGER PROPERTIES, THEY INVEST IN DIFFERENT BUSINESSES.

SO IT'S ONE OF THOSE THINGS THAT IT'S AS YOU IT'S HARD TO REPLICATE.

AND ONCE YOU GET, ONCE YOU REDUCE THOSE SERVICES.

SO IT'S ONE OF THOSE THINGS THAT IT'S GENERALLY WE DON'T WANT TO MAKE THOSE CUTS.

OBVIOUSLY, THOUGH, WE DO EVERYTHING WE CAN TO BEST SERVE THE CITY.

ALL RIGHT. AND THE OPTION TO THAT I'M SORRY. WERE THERE ANY OTHER QUESTIONS ABOUT THAT.

THAT APPEAR TO BE. THANK YOU. OKAY. THE OPTION TWO THAT WE'RE LOOKING AT IS JUST REALLY THE, THE REDUCTION OF AND RETOOLING OF THE MAUREEN GRAY LITERACY CENTER.

IF WE GO ON TO OPTION THREE. WHAT YOU'LL SEE IS WE WERE ASKED TO REALLY LOOK AND SEE WHERE WE COULD CUT.

SO WE TALKED ABOUT A CLEAN SLATE, FULL REDUCTION OF LITERACY.

SO THE FULL TIME LITERACY COORDINATOR WITH A FEW BENEFITS IN THERE.

102,400 PART TIME POSITION AT 12 18,000. PART TIME POSITION 10,000 FOR A TOTAL OF 130,896. BUT THAT IS A FULL REDUCTION OF THAT PARTICULAR PART OF THE LIBRARY SYSTEM.

OBVIOUSLY THE LITERACY CENTER HAS BEEN A VERY IMPORTANT PART OF THE LIBRARIES, BUT WE ARE TASKED WITH LOOKING AT FROM ONE LEVEL TO THE NEXT. SO YIELDS APPROXIMATELY.

THIS ONE YIELDS APPROXIMATELY ABOUT $23,000 MORE THAN THE SECOND OPTION.

I KNOW I'D LIKE TO SAY I KNOW WE HAVE A POVERTY RATE AT 20%.

SO I THINK IT'S RECOGNIZING THAT WE DO HAVE A LITERACY PROBLEM HERE IN OUR COMMUNITY.

IS SOMETHING US TURNING A BLIND EYE TO DOESN'T REALLY HELP RAISE UP OUR COMMUNITY TO BE MORE EFFECTIVE.

SO I HATE I HATE TO SEE CUTS LIKE THIS, BUT I UNDERSTAND THESE ARE THINGS THAT CAN BE LOOKED AT.

AND BUT, YOU KNOW, I ALSO THINK THE PEOPLE THAT NEED THAT.

LITERACY TRAINING, YOU KNOW, IF THERE'S LIMITED PLACES TO GO, THAT'S.

AND IF YOU GOOGLE LITERACY OR GED TESTING OR GED TRAINING, YOU WILL SEE WORKFORCE DEVELOPMENT.

YOU'LL SEE THE MARINE GRADE LITERACY CENTER AND ONE MORE BUT THERE'S NOT A LOT

[00:55:09]

AND LAMAR LIT NONE OF THOSE. SO. COUNCILWOMAN SHERWOOD IS THIS SOMETHING THAT WE'VE EVER PARTNERED WITH BISD ON? WE HAVE TRIED IN THE PAST WE ARE LOOKING AT RIGHT NOW, I'M TRYING TO GET IN TO TALK TO THE NEW ADMINISTRATOR TO PROPOSE A FEW THINGS THAT MR. BOONE HAS ASKED ME TO WORK WITH THEM ON.

AND PART OF THAT WOULD BE IF WE COULD, THE RETOOLING WOULD BE FOR US TO ACT MORE AS AN ADMINISTRATOR OF THE PROGRAM AND BRING IN ALL OF THESE OTHER ENTITIES TO HELP WITH THE ACTUAL TRAINING AND EDUCATION.

SO, BUT WE WANT TO EXPAND THAT TO INCLUDE SO MUCH MORE THAN WHAT WE HAVE NOW.

YES, MA'AM. YES. COUNCILMAN. AND I'LL AGREE. I MEAN, THE, THE LITERACY IS VERY IMPORTANT.

I WOULD HATE TO SEE A REDUCTION IN IN ANYTHING TO DO WITH LITERACY.

WE WE HAVE A PROBLEM WITH THAT HERE. AND SO I HAVE TO AGREE.

IT'LL MAKE OUR CITY BETTER. I WOULD HATE TO SEE THIS THIS TYPE OF CUTS WHEN IT COMES TO THAT.

JUST ONE OF THE OPTIONS. YES, SIR. ANY OTHER QUESTIONS.

ANY OTHER THAT APPEAR TO BE. OPTION FOUR. SORRY.

ONE OF THE THINGS THAT WE'VE TALKED ABOUT IS CLOSING THE MAIN LIBRARY TO THE PUBLIC.

THE LIBRARY, THE MAIN LIBRARY IS THE LARGEST COLLECTION.

WE DO CIRCULATE AMONG OUR LIBRARIES, A LOT OF THE MATERIALS THAT ARE IN THAT LIBRARY.

WE ARE ALSO IN INTERLIBRARY LOAN SITUATION THROUGH THE STATE, WHICH WE RECEIVED FUNDING FOR.

WE, WE WANTED TO AT LEAST PUT THIS OUT THERE AS AN OPTION.

IT IS SOMETHING THAT OBVIOUSLY WE WOULD TAKE AWAY FULL FOR MAIN LIBRARY PART TIME POSITIONS.

THIS ELIMINATES $38,400 A YEAR. WE WOULD RETAIN THE REST OF THE STAFF, FULL STAFF, AND TWO BILINGUAL PART TIME THAT WE COULD THEN MOVE TO OTHER LIBRARIES IF NEED BE. WE WOULD NEED SOME STAFF TO BE THERE TO WORK THE COLLECTIONS AND TO GET THOSE ITEMS THAT ARE CIRCULATED.

THERE ARE SOME TIMES DURING THE WEEK THAT WE TRANSFER 2 OR 300 BOOKS OUT OF THAT LIBRARY TO SOME OF THE OTHER LIBRARIES OR MORE THIS IS JUST A. IT GIVES US AN ABILITY BECAUSE WE HAVE NOT ONLY THE MAIN LIBRARY THERE, BUT WE HAVE LITERACY THERE.

WE HAVE THE MAIN LIBRARY ADMINISTRATION. THERE WE HAVE OUR TECHNICAL SERVICES WHERE WE DO ALL OF OUR CATALOGING.

SO THERE WOULD STILL BE PERSONNEL AT THE LIBRARY.

THIS WAS JUST AN IDEA TO CUT SOME OF THOSE PART TIME CLERK POSITIONS.

SO IT WOULD BE CLOSED TO THE THE PUBLIC AND CONVERTED TO AN IN-HOUSE CIRCULATION AND TECHNICAL SERVICES HUB.

AND IF WE DO EXPAND, IF WE TAKE THAT OPTION TO AND EXPAND THE LITERACY DEPARTMENT, WE WOULD PROBABLY UTILIZE MORE OF THAT MAIN LIBRARY FOOTPRINT FOR THOSE SERVICES. COUNCILMAN TURNER. SO ARE WE CUTTING POSITIONS THAT ARE UNFILLED? ARE WE TALKING ABOUT CUTTING POSITIONS THAT PEOPLE ARE IN? AT THIS POINT IN TIME, THOSE FOUR POSITIONS WOULD BE CURRENT EMPLOYEES.

YES. I CAN'T SUPPORT CUTTING THE CURRENT EMPLOYEE EMPLOYEE SALARY, SO I JUST WANT THAT ON THE RECORD.

I DON'T SUPPORT THAT. YES, SIR. ANYTHING ELSE? I DON'T BELIEVE SO. DO YOU HAVE ANY MORE? OPTION FIVE.

OKAY. SO THIS IS JUST A COMBINATION OF THE LITERACY CLOSURE AND MAIN REDUCTION. AT $169,296. AND I PUT THE VERY LAST NOTE ON HERE BECAUSE ONE OF THE THINGS THROUGH THE STATE IS THAT WE DO HAVE TO KEEP A CERTAIN AMOUNT OF CITY FINANCIAL SERVICE TO THE LIBRARIES. AND ANY IT'S NOT THERE RIGHT NOW, BUT IF WE GO BELOW A CERTAIN AMOUNT, WE WOULD BE AT RISK OF LOSING OUR ACCREDITATION.

WE CERTAINLY DON'T WANT TO SEE THAT HAPPEN. SO ANY OTHER QUESTIONS.

ANYTHING ELSE. COUNCILMAN. YES, SIR. AND I DIDN'T SEE ANYTHING ABOUT THE TERROR HISTORICAL LIBRARY.

[01:00:08]

ALSO, IN THIS YEAR, WE HAVE HAD REDUCTIONS IN STAFF ALREADY THERE.

WE LOST THREE, TWO, THREE PART TIME POSITIONS.

THOSE WERE ACTUALLY FUNDED THROUGH THE TERRELL HISTORICAL LIBRARY ASSOCIATION.

SO OUR STAFFING THERE IS STRETCHED TO THE NTH DEGREE RIGHT NOW.

OKAY. THANK YOU COUNCILMAN. THANK YOU SIR. THANK YOU.

NOW WE'LL MOVE INTO FISCAL YEAR 2027 DRAFT BUDGET.

[3. FY 2027 Draft Projected Budget]

DO YOU WANT ME? ALL RIGHT. GOOD MORNING. MAYOR. CITY COUNCIL STAFF.

ALL RIGHT. SO AS WE CONTINUE PREPARING THE 2011 BUDGET, WE ARE AWARE THAT WE CONTINUE TO FACE BUDGET CHALLENGES AS EXPENDITURES ARE INCREASING AT A FASTER RATE THAN OUR REVENUES. DUE TO ADDRESS THESE CHALLENGES, WE WOULD LIKE TO SHARE THE COST REDUCTION MEASURES THAT WE HAVE IMPLEMENTED TO DATE AND DISCUSS THEIR IMPACT ON THE BUDGET. WE WILL ALSO PRESENT PROPERTY TAX RATE INFORMATION AND PROVIDE AN OVERVIEW OF HOW THESE RATES AFFECT THE CITY'S OVERALL FINANCIAL OUTLOOK.

WE WOULD ALSO LIKE TO TAKE THIS TIME TO THANK ALL DEPARTMENTS FOR THEIR COLLABORATION, UNDERSTANDING AND COMMITMENT THROUGHOUT THIS PROCESS.

DESPITE THE BUDGET CHALLENGES WE FACE, DEPARTMENTS HAVE CONTINUED TO IDENTIFY EFFICIENCIES AND PRIORITIZE ESSENTIAL SERVICES TO HELP ENSURE THE CITY REMAINS FISCALLY RESPONSIBLE. SO I REALLY DO APPRECIATE ALL THE DEPARTMENTS.

THEY'VE WORKED HARD, JUST AS FINANCE HAS WORKED HARD ON TRYING TO COME UP WITH THIS PROPOSED 27 BUDGET.

ALL RIGHT. SO. OKAY. SO WE'RE GOING TO GO OVER THE CALENDAR JUST A LITTLE BIT TO KIND OF PINPOINT SOME IMPORTANT DATES. AUGUST THE 18TH WILL BE THE ACTUAL OFFICIAL DATE THAT WE WILL, THAT THE CITY MANAGER WILL PRESENT THE PROPOSED FY 27 BUDGET. TODAY IS JUST A BUDGET WORKSHOP. WE'LL GO OVER SOME KEY, KEY, KEY POINTS THAT WE'RE GOING TO DO WITH THE BUDGET, BUT THAT WILL BE THE OFFICIAL DATE THAT WE'LL BE PROPOSING THE 27 BUDGET AND THEN ADOPTION DATE WOULD BE THAT SEPTEMBER 8TH WILL BE THE PUBLIC HEARING ON THE BUDGET TAX RATE AND THE ADOPTING OF THE BUDGET AND ACCEPTING THE APPROVES THE PROPOSED TAX ROLL.

SO THOSE ARE JUST TWO IMPORTANT DATES TO REMEMBER.

THIS IS A SLIDE THAT WE PRESENTED LAST TIME. JUST SOME KEY BUDGET CHALLENGES THAT WE CONTINUE TO FACE.

FLUCTUATING ECONOMIC CHALLENGES, INFLATIONARY PRESSURES SUCH AS HIGHER COSTS FOR FOR GOODS AND SERVICES AND CONTRACTS INCREASED OPERATING EXPENSES, REDUCING AVAILABLE FUNDS FOR NEW INITIATIVES PERSONNEL COSTS, RISING HEALTH CARE AND BENEFIT EXPENSES ADDITIONAL TRANSFER TO THAT EMPLOYEE BENEFITS FUND BEING, HAVING TO BE MADE EACH YEAR.

RECRUITMENT AND RETENTION CHALLENGES CAUSING INCREASES IN OVERTIME, CONTRACTUAL WAGE AND CERTIFICATION INCREASES FOR SWORN PERSONNEL AND COST OF LIVING ADJUSTMENTS FOR CIVILIANS. CAPITAL DEMANDS. WE HAVE AGING FACILITIES AND EQUIPMENT REQUIRING REPLACEMENT OR REPAIR.

WE HAVE LIMITED FUNDING FOR THESE MAJOR CAPITAL IMPROVEMENTS.

AS YOU KNOW, THE GENERAL FUND HAS TO TRANSFER INTO THE CAPITAL RESERVE TO SUPPORT THESE INITIATIVES, AND IF WE HAVE LIMITED FUNDING, THEN THERE'S NO MONEY FOR THAT. THERE'S LESS MONEY FOR THAT TRANSFER.

WE ALSO HAVE TECHNOLOGY AND CYBERSECURITY NEEDS THAT NEED TO BE MADE EACH YEAR.

SO SYSTEM UPGRADES, SOFTWARE LICENSING WE ARE HAVING TO IMPLEMENT THE NEW ERP SYSTEM THIS YEAR.

SOFTWARE. THIS YEAR THE CITY WORKS SOFTWARE IS END OF LIFE.

SO THAT'S A BIG PURCHASE THAT WE'RE HAVING TO DO IN FY 27.

SO JUST THINGS TO KEEP IN MIND IS THAT IT'S CAUSING A LOT OF THESE BUDGET CHALLENGES.

GENERAL FUND SUPPLEMENTALS. SO FOR FY 27, THE APPROVED SUPPLEMENTALS THUS FAR THAT ARE IN THE PROJECTED BUDGET IS THAT ENTERPRISE, THE ERP SYSTEM OF 726,000. THE CITY WORKS SOFTWARE OF 767,000.

THE SEX OFFENDER REGISTRATION SOFTWARE 34000 ADDITIONAL PARK CAMERAS FOR 365IT END OF LIFE SYSTEM UPGRADES AND LICENSING OF 257,000 CDL TRAINING, 27,000 ADDITIONAL CLEAR DEMO COSTS 30 AND ANIMAL SHELTER OVERFLOW PILOT PROGRAM FOR 3000.

[01:05:08]

JUST TO KIND OF RECAP, YOU KNOW, EVERY DEPARTMENT IS ASKED TO SUBMIT SUPPLEMENTALS EACH YEAR.

SO AS YOU CAN SEE, OUR INFORMATION TECHNOLOGY SUPPLEMENTAL REQUESTS WERE 2.9 MILLION FOR 27 FACILITIES MAINTENANCE TOTAL REQUEST WAS 5.6.

AND THEN WE HAD A TOTAL REQUEST OF 2.9 JUST FOR JUST FOR GENERAL FUND SUPPLEMENTALS ADDITIONAL SUPPLEMENTALS FOR FY 27.

FLEET REQUESTS THAT GOES ALONG WITH OUR CAPITAL.

SO EVERY YEAR, YOU KNOW, WE'RE HAVING TO REPLACE AGING FLEET.

ORIGINALLY OUR 27 PURCHASE REQUEST FOR THE GENERAL FUND IS 6.1.

WATER FACILITIES IS 2.5. SOLID WASTE IS FIVE JUST OVER 5 MILLION FOR A TOTAL OF 13.6.

I DID GO BACK TO MR. JEFF HARVILLE WAS WAS KIND ENOUGH TO REVISIT THESE NUMBERS ASKED BY BY US TO TRY TO GET THOSE NUMBERS DOWN.

AND BECAUSE OF OUR FINANCIAL SITUATION THAT WE'RE IN.

SO RIGHT NOW WE'RE CONSIDERING LOOKING AT GENERAL FUND FLEET REQUESTS OF JUST OVER 3 MILLION.

WATER UTILITIES AT 1.2. SOLID WASTE AT 2.1 FOR A TOTAL OF 6.4.

FOR A REDUCTION. FOR THAT. FOR FOR THE FLEET.

AND AGAIN, IF WE ARE TO CONSIDER WATER UTILITY SOLID WASTE HAS THE FUND BALANCE IN THEIR FUNDS TO BE ABLE TO SUPPORT THOSE PURCHASES.

THE GENERAL FUND, WE WOULD HAVE TO CONSIDER AN ADDITIONAL TAX NOTE FOR FY 27 IF WE APPROVE THIS OVER JUST OVER $3 MILLION FLEET PURCHASE.

SO JUST KEEP THAT IN MIND. CLOSING THE GAP. SO IN ORDER TO GET OUR REVENUES IN LINE MORE IN LINE WITH OUR EXPENDITURES, THINGS THAT WE HAVE IMPLEMENTED SO FAR, SALARY FREEZE, DECREASING OPERATING SUPPLIES AND EQUIPMENT, WE'VE ASKED EVERY DEPARTMENT TO DO THAT, TO GO BACK AND LOOK AT ALL THEIR THEIR ENTIRE BUDGET AGAIN, REEVALUATE IT ANYWHERE THEY CAN CUT. PLEASE GIVE US THOSE NUMBERS.

THEY'VE, THEY'VE, THEY'VE GIVEN THOSE NUMBERS. I'VE MADE MOST OF THOSE THOSE ADJUSTMENTS CUT TRAVEL BUDGETS BY 60%.

DEPARTMENTS HAVE BEEN ASKED TO DO THAT FOR FY 27.

AND THEN OUR INCREASE IN EMPLOYEE BENEFIT CONTRIBUTIONS TO 9%.

COST OF LIVING. SO IN FY 27, OUR CONTRACTOR WAGE INCREASES ARE 5% FOR POLICE, WHICH IS AN ESTIMATED $1.2 MILLION, 3% FOR FOR FIRE, WHICH IS $727,000. PROPOSING A 2% COLA CIVILIAN COLA INCREASE IS AN ESTIMATED $818,000 TO THE GENERAL FUND. SO KEEP IN MIND THAT THE MEDIAN SALARY FOR A CITY OF BEAUMONT CIVILIAN EMPLOYEE IS $22.16 PER HOUR, OR JUST OVER $46,000 A YEAR. GIVING A 2% COLA IS AN ESTIMATED GROSS INCREASE OF $76.82 PER MONTH.

PROPOSING THAT 9% HEALTH BENEFITS INCREASE TO THE EMPLOYEES IS AN ADDITIONAL $40 A MONTH ON FAMILY COVERAGE, WHICH THAT REDUCES THAT 2% COLA TO $36.82 PER MONTH.

ALL RIGHT. SO BEFORE WE GET INTO THIS NEXT DISCUSSION I JUST WANTED TO MAKE A STATEMENT REAL QUICK.

WHILE PROPERTY TAX INCREASES IS NOT A PREFERRED OPTION, THE REALITY IS THAT EXPENSES CONTINUE TO OUT TO OUTPACE REVENUES, CONTRACTOR WAGES, RISING COSTS OF GOODS AND SERVICES, AND LIMITED FUNDING FOR INFRASTRUCTURE AND FLEET NEEDS ARE PLACING SIGNIFICANT PRESSURES ON THE BUDGET. AS A RESULT, WE MUST EVALUATE, EVALUATE OPTIONS TO BRING OUR REVENUES MORE IN LINE WITH OUR GROWING EXPENSES.

SO WITH THAT BEING SAID, I WANTED TO KIND OF GO OVER HOW PROPERTY TAX RATE CALCULATIONS ARE DONE.

SO YOU HAVE YOUR RATE AND THEN YOU HAVE YOUR INS, WHICH IS WHICH IS YOUR DEBT RATE.

SO YOUR RATE IS YOUR OPERATING MAINTENANCE AND OPERATIONS, JUST AS IT STATES YOUR INS, YOUR DEBT RATE IS WHAT SUPPORTS ANY CITY'S DEBT.

SO YOU HAVE SO PART OF THAT PROPERTY TAX IS THAT INS DEBT RATE, WHICH COVERS YOUR DEBT PAYMENTS FOR ANY OF THE DEBT THAT THE CITY HAS WENT OUT FOR.

OKAY. IT'S KIND OF A OVERVIEW ON THAT. SO SPEAKING OF DEBT RATE, WE DID GO OUT FOR DEBT IN FY 27/26. SO WITH ADDING THAT ADDITIONAL DEBT, YOUR CURRENT FISCAL YEAR RATE, OUR TOTAL TAX RATE RIGHT NOW IS

[01:10:04]

OKAY. SO AT OUR CURRENT RATE RIGHT NOW, IF WE WERE TO LEAVE THE CURRENT RATE THE SAME AT THE THE TOTAL, THE TOTAL RATE 0.659663, OUR ANNUAL DEBT RATE, OUR DEBT RATE HAS TO INCREASE TO SUPPORT OUR DEBT THAT WE WENT UP FOR IN FY 26. IT HAS TO GO TO THE 0.214174. WE HAVE NO CONTROL OVER THAT.

COUNCILMAN TURNER. JUST I KNOW YOU SAID THE DEBT WE WENT OUT FOR, WE'RE SPEAKING IN REFERENCE TO THE BOND.

SO PEOPLE WHO ARE FOLLOWING US WANT TO MAKE SURE THEY TOTALLY UNDERSTAND WHAT WE'RE DOING AND WHY.

THAT IS FOR THE GEO BONDS THAT'S. OVER. THERE.

NO, I UNDERSTAND. YES. OUR DEBT THAT WE INCURRED IN 20 THAT WE INCURRED IN 26 IS THE GEO BOND THAT WE DID ON ELECTION.

SO THAT IS WHY THAT DEBT IS INCREASED. JUST TO CLARIFY, THAT'S 38,750,000 AS A PORTION OF PROP AYE YOU KNOW, PROP A WAS 58 MILLION. WE ONLY DID A PORTION OF THAT.

ALSO A CO NOTE FOR 11.69 MILLION. AND THEN THE TAX NOTE THAT AMY REFERENCED EARLIER IS 3.1 MILLION.

SO A TOTAL ISSUANCE OF 53.6 MILLION THIS YEAR.

SO IT'S JUST IMPORTANT TO TALK ABOUT IS AND AMY WILL COVER IT IS THAT THAT DEBT RATE PORTION OF THE 65.93, THAT 0.18 HAS TO GO UP TO 0.21 JUST TO COVER THAT.

AND IF YOU KEEP YOUR TOTAL AT THE SAME, THEN THAT'S GOING TO BE YOU'RE GOING TO REDUCE YOUR O&M.

AS AMY HAS POINTED OUT 3.7 MILLION. AND MR. MANAGER, THERE WAS SOMETHING IMPORTANT TO ME BECAUSE THAT'S SOMETHING THAT THE VOTERS DECIDED TO DO. AND I WANT TO CLARIFY THAT THAT THAT'S THE WAY IT TOOK PLACE VERSUS COUNCIL DOING IT.

I THINK THAT'S AN IMPORTANT TOPIC TO ACTUALLY HIGHLIGHT THAT'S IMPLEMENTED.

AND I, AND I WILL POINT OUT, AS WE GO INTO POTENTIAL DEBT GEO ISSUES IN THE FUTURE, IF ALL PROPOSITIONS HAD PASSED US.

THAT NUMBER WOULD BE CONSIDERABLY HIGHER. AS WE DISCUSSED.

I JUST COUNCILWOMAN SHERWOOD AND THEN COUNCILMAN CRENSHAW.

I WANT TO ECHO COUNCILMAN TURNER BECAUSE THIS IS SOMETHING THAT THE VOTERS VOTED ON, WHICH INCLUDES SIDEWALKS, STREETS, DRAINAGE. THIS INFRASTRUCTURE PORTION OF THE BOND THAT DID PASS.

THIS IS FOR CLARIFICATION. BECAUSE THAT MATTERS.

THIS MUST INCREASE TO INCUR THE COST THAT WE MUST SPEND OR WE AGREE TO SPEND ON THAT PARTICULAR PART OF OUR CITY.

OH DIDN'T I THOUGHT WHEN WE PRESENTED THE BOND PACKAGE, IT SAID THAT YOUR PROPERTY TAXES ON AN AVERAGE HOME WOULD INCREASE A CERTAIN AMOUNT. SO ARE THE INCREASE IN TAXES TO PAY FOR THE INFRASTRUCTURE AND PROP A, IS THAT A SEPARATE ITEM THAT PEOPLE WILL GET ON THEIR TAX BILLS? OH NO. IT'S GOING TO BE ALL PART OF THAT ITEM.

AND WE WILL AMY IS GOING TO GO INTO AMENDMENTS.

SO YOU REMEMBER DURING THE THE BOND ELECTION, I THINK THE THE CALCULATION THAT WAS GIVEN WAS FOR $155,000 HOME.

AND WE'VE GOT AN ESTIMATE IN OUR IN OUR PRESENTATION LATER FOR 150,000.

SO TO ANSWER YOUR QUESTION, IT WOULD ALL BE IT WOULD ALL BE WITHIN THE TOTAL TAX RATE.

SINCE VOTERS. APPROVED THAT. DOES THAT MEAN THAT THAT THAT WE WILL INCREASE OUR 0.659 TO COVER THE COST OF THE GEO? YOU DON'T HAVE TO. IF YOU SAID WE'RE GOING TO STAY AT THE 0.659, THAT'S FINE, BUT YOU'RE GOING TO HAVE TO REDUCE.

YOUR. RATE 3.7 MILLION. SO INSTEAD OF A DEFICIT.

BUT BUT THE VOTERS TECHNICALLY APPROVED THAT A SPENDING.

AND THE INCREASE IN OUR DEBT RATE IN ORDER TO SATISFY THAT.

SO THAT'S WHAT OF WHAT OF THE INCREASE IN THE DEBT RATE.

IS JUST THAT GEO THAT WE COULD INCREASE THE TOTAL TAX RATE TO SAY THIS WAS VOTER APPROVED.

IF YOU JUST WENT WITH PROP A TO COVER THE DEBT SERVICE 0.0163 OKAY.

AND WHAT IS THAT DOLLAR WISE, INCREASING OUR PROPERTY TAXES? I WOULD HAVE TO DO THAT. YEAH. WE'D HAVE TO CALCULATE THAT. WE'VE GOT THE TOTAL FOR THE ADDITIONAL DEBT SERVICE, BUT WE WOULD HAVE TO CALCULATE THAT. AND, AND WHAT WOULD JUST THAT NUMBER INCREASE OUR TOTAL TAX RATE TO.

FROM OUR CURRENT RATE. YES. WHAT MY. WHAT IS THE OH ONE.

[01:15:02]

IT'S BECAUSE WE TOLD PEOPLE IF YOU VOTE IN FAVOR OF THESE PROPOSITIONS, YOU'RE IT'S GOING TO INCREASE YOUR PROPERTY TAXES.

BUT IN REALITY, IT IT WASN'T AUTOMATIC. IT'S NOW REQUIRING US TO COME ALONG AND INCREASE THE TOTAL TAX RATE IN ORDER TO MAKE UP FOR THOSE EXPENSES. CORRECT? THAT'S RIGHT.

WE DO. THAT'S CORRECT. TO ME, IT SEEMS LIKE IT WOULD HAVE BEEN EASIER IF THIS WOULD HAVE JUST BEEN AUTOMATIC.

AND BUT IT GIVES US THE FLEXIBILITY OF IF WE HAD IF WE WERE IN A DIFFERENT SITUATION AND WE HAD A LOT OF EXTRA REVENUE, WE WOULDN'T HAVE TO, BUT WE PROBABLY WOULDN'T HAVE WENT OUT ON THE G.O.

TO BEGIN WITH. SO YOU'RE RIGHT. THE MERE FACT IT WAS IT WAS PUT OUT THAT IT WILL INCREASE YOUR PROPERTY TAXES BY THIS.

FOR THAT REASON, WE HAD ANTICIPATED GOING UP THAT AMOUNT.

SO WHAT I THINK WOULD HELP WITH US WOULD BE IF WE HAD AN ADDITIONAL LINE HERE UNDER CURRENT RATE THAT WOULD SAY VOTER APPROVED INCREASE OR WHATEVER YOU WANT TO CALL IT, WITH THE 0.013 OR WHATEVER IT WAS.

THAT WAY WE CAN LET PEOPLE KNOW, YES, YOUR PROPERTY TAXES ARE INCREASING, BUT IT'S BECAUSE PROP EIGHT PASSED AND VOTERS AGREED TO DO THAT. IT'S NOT NECESSARILY THE COUNCIL THAT JUST CAME ALONG AND DECIDED, WELL, WE WANT MORE MONEY TO SPEND, SO WE'VE DECIDED TO INCREASE YOUR TAX RATE. DOES THAT MAKE SENSE? BECAUSE I THINK SOME OF THAT ADDRESSES IS ADDRESSED IN SOME UPCOMING SLIDES IN TERMS OF WHAT THIS MEANS.

I ALWAYS ASK QUESTIONS THAT ARE THE NEXT SLIDE.

BUT TO THAT POINT IT IS. YEAH YOU. DID. TO THAT POINT.

I THINK THE BOND ELECTION WAS VERY CLEAR THAT THIS WILL BE ADDITIONAL TAXES.

IT WASN'T A SITUATION LIKE, OH, WE'LL COVER IT THROUGH O AND M.

IT WAS PRETTY, PRETTY STRAIGHTFORWARD THAT IT WAS RIGHT.

BUT IT'S NOT REFLECTED SO FAR IN WHAT WE'RE TALKING ABOUT.

AND I JUST THINK THAT THAT'S A VERY IMPORTANT BECAUSE, YOU KNOW, I I'M NOT IN FAVOR OF INCREASING THE TAX RATE AT ALL.

BUT IF VOTERS APPROVE IT, OBVIOUSLY, YOU KNOW, WE DON'T HAVE ANY CHOICE.

RIGHT. SO AGAIN, JUST TO REITERATE THIS, THIS SLIDE, IF YOU SAY AT THE SAME TOTAL TAX RATE CURRENTLY, THEN YOU WOULD HAVE TO REDUCE THAT OW RATE IN ORDER TO MAKE UP FOR THAT DIFFERENCE.

AND THAT DEBT THAT DEBT RATE. AT THAT .66767.

.67596363675963.

SO THIS IS JUST AN OVERVIEW OF WHAT OUR TOTAL OUR BREAKDOWN OF OUR OUR TAX RATE HAS BEEN SINCE 2017 THROUGH THIS FISCAL YEAR.

AS YOU CAN SEE IN 1819 AND 20 AND 21, IT WAS AT 0.7, 1.71.

AND THEN IN 22 IT DROPPED TO THAT 0.05. AND THEN IN 24 OR LET ME SAY 23, WE'RE AT POINT.

I NEED GLASSES APPARENTLY. 23. WE'RE AT 0.695.

AND THEN IN 25 AND 26, WE'VE BEEN AT THAT .65, NINE SIX, SIX THREE FOR THE PAST TWO YEARS.

SO JUST FOR THE RECORD, BECAUSE WE NEED TO UNDERSTAND IF WE'RE LOOKING BACK AT 17, 18, 19, 2021. TAX RATE WAS. 22. THAT'S WHAT ONE, TWO, THREE, FOUR, FIVE SIX YEARS. WE PAID MORE. AND CURRENTLY WE REDUCED IT.

AND I KNOW PEOPLE ARE IN FAVOR OF RAISING TAXES, BUT THE NORM OVER THE LAST TEN YEARS IN LINE WITH NORMAL SEE RIGHT.

SIX YEARS WOULD YOU KNOW GENERALLY WE'VE BEEN PAYING 0.71.

RIGHT. OKAY. SO I JUST WANT TO BE CLEAR ON THOSE.

RIGHT. THOSE FOUR YEARS. THAT'S. WE WERE. OVER THE PAST TEN YEARS, TYPICALLY.

GENERALLY IT'S BEEN HIGHER THAN IT IS NOW. AND IS THERE A REAL REASON THAT YOU CAN GIVE US THAT WE REDUCED IT.

WHY? WHY DID WE DO THAT? BECAUSE WHEN YOU TAKE THINGS AWAY, IT'S HARD TO EXPLAIN OR YOU GIVE AN INCENTIVE.

IT'S HARD TO EXPLAIN. IT'S HARD TO JUSTIFY A RAISE OR GOING BACKWARD.

YOU KNOW WHY? WHY DO WE DO IT? I JUST, YOU KNOW, FOR THE RECORD, DO WE DO WE HAVE ANY ANSWERS? IT'S A BUDGETARY CONSIDERATION, A DECISION, A RECOMMENDATION BY THE MANAGER, A DECISION OF THE COUNCIL.

[01:20:01]

SO, YOU KNOW, YOU WANT TO REDUCE THAT RATE. HOWEVER I GOT A QUESTION.

IF I COULD STOP YOU RIGHT THERE BECAUSE CAN YOU REPEAT THAT? IT'S OKAY TO REDUCE THE RATE WHEN. WHEN YOU CAN AFFORD IT.

OKAY. I JUST WANT TO GET CLARIFICATION ON THAT WHEN YOU CAN AFFORD IT.

YES, MA'AM. COUNCILMAN WILLIAMS. SO WERE THOSE REDUCTIONS LIKELY HAD SOMETHING TO DO WITH VALUES GOING UP AS WELL? I MEAN SURELY PROPERTY VALUES HAVE GONE UP SINCE 2017.

YES. I MEAN THEY THEY CERTAINLY HAVE GONE UP SINCE 2017.

SO THE RATE MIGHT GO DOWN. BUT THE ACTUAL REFLECTED COST WHAT'S COMING OUT OF SOMEBODY'S POCKET MIGHT NOT HAVE CHANGED.

CORRECT. BUT YOU KNOW, IN TERMS OF THE THE REASONING BEHIND IT, I DON'T HAVE INSIGHT INTO THAT.

YEAH. SO I'M SORRY, I JUST I WANT TO REVISIT THIS A LITTLE BIT BECAUSE WE REDUCED IT BECAUSE WE COULD AFFORD TO REDUCE IT.

AND NOW THAT WE'RE LOOKING AT THESE NUMBERS EXPENSES HAVE ALSO GONE UP AS WELL, RIGHT.

FROM WHATEVER WE HAD GOING ON PRIOR TO THE EXPENSES THAT WE SPEND OR THE COST OF THINGS TO DO BUSINESS PRIOR TO THIS WHEN WE PAID MORE EXPENSES HAVE GONE UP. YES.

CORRECT. SO ALL THE FACTORS AMY MENTIONED IN THE BUDGET CHALLENGES, WE KIND OF DESCRIBED IT TODAY IN THE PRIOR COUPLE BUDGET WORK SESSIONS, INFLATION. THE CITY IS NOT IMMUNE FROM INFLATION, CERTAINLY.

AND ALL THE REASONS WE'VE TALKED ABOUT IN TERMS OF HOW WE'RE IN THE SITUATION WE'RE IN.

RIGHT. THANK YOU. ANY MORE QUESTIONS ON THAT.

COMPARISON CITIES. SO THERE ARE 249 CITIES IN TEXAS WITH HIGHER PROPERTY TAX RATES THAN BEAUMONT.

AND LOOKING AT SIMILAR MATURE CITIES, BEAUMONT IS IN THE MIDDLE OF THE RANGE.

SO IF YOU KIND OF LOOK. THESE ARE SOME COMPARISON CITIES THAT WE DID.

CURRENT OUR CURRENT AT OUR CURRENT RATE AND THEIR CURRENT RATE.

0.659663 IS OURS. AS YOU CAN SEE MESQUITE IS AT 0.704692.

ABILENE IS AT 0.75442. WACO IS AT 0.755 AND SAN ANGELO IS AT 0.7947.

BELOW US WE HAVE ODESSA, WHICH IS AT 0.4707.

ALL RIGHT. SO IF I COULD CLARIFY ON THAT, THAT THAT MAY BE MISLEADING BECAUSE THERE CAN ALSO BE OTHER TAXES THAT ARE INCLUDED IN THEIR PROPERTY TAX BILL, SUCH AS EMERGENCY SERVICES DISTRICTS AND MUD DISTRICTS AND THINGS LIKE THAT THAT ARE ADDITIONAL FUNDING FOR. EVERYTHING. SERVICES AND OURS ARE ALL LUMPED TOGETHER.

WE ALSO HAVE A PORT TAX. AND, YOU KNOW, I GUARANTEE YOU ODESSA DOESN'T HAVE A PORT TAX, BUT HARLINGEN MAY.

BUT ANYWAY, YOU KNOW, WE DON'T KNOW IF WITH THOSE LOWER RATES OR THOSE HIGHER RATES, IF THERE'S ADDITIONAL SERVICE AND TAXING ENTITIES WITHIN THOSE. SO THESE ARE ONLY THEIR CITY TAXES TO THAT POINT, WE COULD GET YOU THEIR TOTAL TAX RATE FOR EACH JURISDICTION.

CORRECT. AND WITHIN REASON. YEAH. I'M JUST SAYING THAT THIS IS JUST THE CITY TAXES.

AND THERE MAY BE ADDITIONAL TAXING ENTITIES WITHIN THOSE MUNICIPALITIES THAT THAT THAT ALLOW THEM TO HAVE A LOWER RATE.

SO I JUST WANTED TO CLARIFY THAT. ALL RIGHT. SO JUST LET'S DISCUSS SOME POTENTIAL REVENUE FROM O&M RATES AND REVENUES. SO CURRENT ADOPTED RATE AT THE 0.659663 M AND O IS WOULD BE THE 49 MILLION DEBT RATE IS THE 24 MILLION 319. IF WE GO TO A NO NEW REVENUE RATE AT 0.683976, THAT WOULD BE AN M AND O REVENUE OF POTENTIAL 51,000,744.

THE DEBT RATE IS GOING TO STAY THE SAME BECAUSE THE DEBT RATE IS SET. IT HAS TO BE AT THAT POINT TO THAT .21.

CURRENT RATE PLUS ADDITIONAL DEBT THAT WE'VE INCURRED WOULD BE, WOULD GIVE US A TAX RATE, A TOTAL TAX RATE OF 0.9692802, WHICH WOULD BE A POTENTIAL REVENUE OF 52,000,716.

[01:25:05]

WHAT WHAT IT MAKES, WHAT THAT IMINO RATE WOULD BE.

YOU HAVE A 23 ADOPTED RATE OF 0.695, WHICH IS A POTENTIAL REVENUE OF 52,000,958.

AND THEN FROM 2018 TO 2021, THAT ADOPTED RATE OF THAT 0.71 IS A POTENTIAL REVENUE OF 54,000,611.

AND THEN YOU HAVE YOUR VOTER APPROVAL RATE. IT'S AT 0.764867, WHICH IS A POTENTIAL REVENUE OF 60,654,000.

CAN I CAN I GET SOME CLARITY? ARE WE GOING TO HAVE A SLIDE? BECAUSE OBVIOUSLY, ONE OF THE BIG THINGS THAT GETS US HERE IS OUR RESERVE FUND AND WHAT THESE TAX INCREASES WOULD DO, WHERE IT WOULD ANTICIPATE PUT PUTTING OUR REVENUE.

OKAY. OKAY. YES, SIR. AND, AND WHEN, WHEN DID WE GET THIS VOTER APPROVAL RATE? WHEN, HOW, HOW OLD IS THIS VOTER APPROVAL? SO THESE ARE OUR CURRENT RATES THAT WE'VE RECEIVED.

SO THESE ARE 27. THESE ARE GOING TO BE OUR 27 CERTIFIED RATES.

IF WE WERE TO GO TO VOTERS AND ASK FOR AN INCREASE, IT WOULD REQUIRE THAT IF WE WENT UP TO THE 0.76.

RIGHT OVER. IT, IF WE WENT OVER. YEAH. CORRECT.

BUT THIS IS. WITHOUT VOTER APPROVAL. THAT'S WHAT THIS IS BASED ON.

THAT'S THE MAXIMUM YOU CAN GO TO WITHOUT HAVING TO GO TO THE VOTERS FOR A RATE.

AND THAT'S SET BY STATE. THAT'S WHAT I WAS TRYING TO CORRECT.

YES THIS IS CORRECT. WE CAN WE JUST CAN'T GO OVER THAT RATE.

THAT'S THE HIGHEST WE CAN GO. RIGHT. SO I HAVE A QUESTION.

THIS MAY BE MORE OF A CHARADE QUESTION. SO SO WITH THIS BEING SAID, I KNOW WE DISCUSSED PEOPLE HAVE ASKED WHY WE DON'T HAVE EDC'S AND THINGS TO THIS MAGNITUDE. AND WE WERE AT A TAX RATE WHERE YOU COULDN'T HAVE ONE.

DOES THIS STILL APPLY CURRENTLY? JUST OUT OF CURIOSITY.

THAT'S MORE OF SALES TAX. YEAH. OKAY. AND THAT'S A THAT'S A BETTER QUESTION FOR YOU.

YEAH. THAT'S A BETTER QUESTION FOR YOUR CITY MANAGER. BUT HONESTLY, LIKE THAT'S, THAT'S NOT REALLY A THAT'S NOT THAT THE QUESTION THAT YOU'RE ASKING ME CAN'T REALLY BE ANSWERED WITH A YES OR NO, BECAUSE THERE'S SO MANY OTHER FACTORS AND VARIABLES THAT PLAY INTO THAT. SO I'LL JUST GO BACK TO. YEAH, THE QUARTER CENT FOR EDCS ARE TYPICALLY THEY COME OUT OF THE SALES TAX. AND BECAUSE WE'RE ALREADY AT EIGHT IN QUARTER, WE DON'T REALLY HAVE THE OPTION TO GO TO EIGHT AND A HALF.

AND SO IT'S MORE OF A SALES TAX FUNCTION. YEAH.

AND I, AND I'M GLAD YOU ANSWERED THAT BECAUSE THE LAST THING I WANT TO DO IS PEOPLE TO SEE, WE'VE SAID MULTIPLE TIMES WE CAN'T BECAUSE WE ARE THE MAX TAX RATE.

AND WE SEE ON THIS SLIDE TODAY IT'S THE DIFFERENCE BETWEEN SALES TAX AND WHAT WE'RE TALKING ABOUT RIGHT NOW.

SO I'M GLAD. I JUST WANTED TO CLARIFY THAT. I THINK IT'S ALSO IMPORTANT TO ADD THAT VOTERS REJECTED AND TURNED DOWN AN EDC.

AND THAT'S NOT SOMETHING THAT WE CAME UP WITH OR DOESN'T MEAN THAT WE DON'T WANT AN EDC.

BUT VOTERS MADE THAT DECISION MANY MOONS AGO AND WE HAVE TO RESPECT IT.

YEAH, WE ASKED ABOUT THAT ALL THE TIME, SO I'M GLAD WE WERE ABLE TO ADDRESS IT BECAUSE VOTERS DID REJECT IT WHEN IT CAME UP.

IS IT LATER IN A SLIDE THAT WE DO THE .675963 TOTAL TAX RATE, WHICH WOULD REFLECT OUR CURRENT ADOPTED RATE PLUS WHAT VOTERS APPROVE FOR THE INFRASTRUCTURE BOND.

WE WE DIDN'T HAVE THAT NUMBER LIKE BROKEN DOWN THAT IN DEPTH.

SO THIS IS INCLUDING ALL DEBT. THIS IS INCLUDING ALL DEBT THE CURRENT RATE PLUS ALL DEBT.

WE HAVE THE WE HAVE THE TOTAL. WE HAVE THE TOTAL OF THE CO THE TAX NOTE AND THE PROP A.

WE JUST DON'T HAVE A LINE FOR PROP A. FOR PROP A.

CORRECT. WELL I WOULD ASK THAT WE ADD THAT BECAUSE YOU KNOW, I'M NOT TRYING TO YOU KNOW I JUST ONLY THING IN MY MIND THAT WOULD MAKE SENSE WOULD BE THE CURRENT ADOPTED RATE PLUS WHAT VOTERS APPROVED.

AND I UNDERSTAND THAT AND WE CAN GET THAT FOR YOU FOR SURE.

THANK YOU. SO I JUST WANTED TO POINT OUT AS WELL TO ON THIS SLIDE THAT GOING FROM YOUR CURRENT ADOPTED RATE TO THAT CURRENT RATE, PLUS YOUR ADDITIONAL DEBT TO THAT 0.692802.

THAT IS A DIFFERENCE OF 3.6, ROUGHLY $3.6 MILLION IN YOUR M AND O, AND THEN GOING FROM YOUR CURRENT ADOPTED RATE TO THAT 2018 TO 20 TO 21 ADOPTED RATE OF ABOUT 0.71 IS, IS IS A DIFFERENCE OF 5.5 MILLION.

SO NEXT SLIDE IS HOME VALUES. SO THIS TAKES YOU HAVE AS YOU SEE YOU HAVE YOUR HOME VALUES ON THE LEFT AND THE FAR LEFT, THE 15253, 5500 AND $1 MILLION HOME. OUR CURRENT TAX RATE IS THAT FIRST COLUMN WHERE WE'RE AT.

AND THEN WE HAVE THE DIFFERENT SCENARIOS OF THE RATES AND WHAT THAT INCREASE WOULD BE.

SO NO NEW REVENUE RATE AT THAT 683976. THE TOTAL TAX WOULD BE JUST OVER 1000.

[01:30:05]

YOU CAN GO TO THE 23 ADOPTED RATE OF THAT 0.695.

AND YOU CAN SEE THAT TOTAL TAX IS $1,042. ANNUAL INCREASE OF 50 JUST OVER $53.

THE ADOPTED RATE OF THAT 0.71 IS $1,065, WITH AN ANNUAL INCREASE OF $75.51.

AND THEN AT A 0.72 WOULD BE THAT 1080, AN ANNUAL INCREASE OF $90.90 $0.51.

AND THEN THE VOTER APPROVAL WOULD BE 1147, WITH AN ANNUAL INCREASE OF 157 80 $0.81.

SO THAT WOULD BE VOTER APPROVAL IS THE HIGHEST WE CAN GO.

SO THAT WOULD BE THE HIGHEST RATE. THE INCREASE.

BUT THOSE JUST KIND OF BREAK IT DOWN. WHAT IT WOULD ACTUALLY COST A CITIZEN ON THEIR FOR THEIR ANNUAL INCREASE.

AND THESE ARE ESTIMATES. SO OKAY. OKAY. SO BASED ON A $150,000 HOME AT OUR CURRENT RATE NO NEW REVENUE.

THIS IS THE DIFFERENCE BETWEEN THIS IS THE ANNUAL INCREASES TO THE CITIZENS BASED ON EACH RATE SCENARIO.

AND THEN TO THE FAR RIGHT, YOU'LL SEE THE CITY REVENUE IMPACT IT CONSIDERED AT 97% COLLECTIONS.

AND THIS IS A TOTAL ANNUAL INCREASE ON ALL PROPERTIES.

SO I WANT TO KIND OF PINPOINT THE THE HIGHLIGHTED, WHICH IS THE CURRENT RATE PLUS ADDITIONAL DEBT.

THAT'S KIND OF OUR BASELINE, I WOULD LIKE TO SAY, BECAUSE WE AT LEAST HAVE TO BE SOMEWHAT THERE TO COVER THAT ADDITIONAL DEBT.

SO THAT'S THAT 0.692802 NUMBER. SO THAT WOULD BE AN ADDITIONAL ANNUAL INCREASE ON ALL PROPERTIES OF 3.6 ROUGHLY.

AND THEN THAT 0.71 WHICH IS THAT 2018 TO 21 ADOPTED RATE.

YOU CAN SEE ON A MONTHLY INCREASE IT WOULD BE ABOUT $6.29.

AND THAT WOULD GENERATE A FIVE POINT, ROUGHLY AROUND 5.5 FOR THE CITY ON REVENUE.

ADDITIONAL. COUNCILMAN HILLIARD. SO I HAVE A QUESTION.

SO HAVE WE LOOKED AT THE THE UN THE UNBILLED MONEY FROM THE WATER DEPARTMENT, FROM THE WATER USAGE.

I KNOW WE HAVE 47,000, BUT I'M GUESSING THAT ANYWHERE FROM TEN TO PROBABLY 12000 PEOPLE ARE NOT BEING CHARGED.

IS THIS BEING FIGURED IN HERE? BECAUSE I MEAN, IT COULD POSSIBLY BE $1,012 MILLION IN WATER, ALSO SOLID WASTE. WE HAVEN'T DONE AN INCREASE, HAVE WE LOOKED AT THAT.

HAVE WE LOOKED AT LANDFILL INCREASES. YOU KNOW, BEFORE WE START GOING TO THE TAXPAYERS, WE'VE GOT TO BE ABLE TO TO LIVE WITHIN OUR MEANS.

AND SO THERE'S A LOT OF DISCREPANCIES THAT WE COULD GENERATE A LOT MORE MONEY BY THE SERVICES WE ALREADY PROVIDE WITHOUT INCREASING THE TAX RATE ON OUR. IF I CAN JUST ADD, WHAT YOU'VE TALKED ABOUT HAS NOTHING TO DO WITH THESE NUMBERS, BECAUSE THOSE ARE ENTERPRISE FUNDS. THAT'S SOMETHING WE BILL SEPARATELY FOR.

SO THAT THAT THAT MONEY IS NOT GOING TOWARDS THIS.

OUR WATER BILL AND SEWER BILLS OR ANYTHING UNBILLED THAT WOULD AFFECT OUR OUR ENTERPRISE FUNDS THERE WOULDN'T AFFECT THESE NUMBERS HERE.

SO THEY DON'T GO INTO THE GENERAL FUND AND AREN'T USED FOR.

THEY WOULD GO INTO THE WATER FUND AND THE SOLID WASTE FUND. YEAH. YEAH.

MAYOR, JUST TO TOUCH ON THAT, THOUGH, SINCE YOU BROUGHT IT UP, WE ARE WORKING TO RESOLVE THAT ISSUE ON THE WATER BILLING, RIGHT. ACTIVELY. AND SO THIS IS BASED ON 97% COLLECTION.

WHERE WERE WE? I REMEMBER YOU ALL PROVIDED A NUMBER OF WHERE YOU THOUGHT WE WERE CURRENTLY ON THAT.

IT WAS LOWER, WASN'T IT? PRIOR WAS 93. 93 WAS WHAT PRIOR WAS.

ESTIMATED TO BE 97. OKAY. AND YOU FEEL COMFORTABLE BEING ABLE TO HIT THAT 97.

I MEAN THAT'S THE PLAN HOPEFULLY. YEAH. I MEAN IT DEPENDS ON, YOU KNOW, HOW MANY THEY CAN THEY SOMETIMES GET APPEALS AND STUFF LIKE THAT. SO IT KIND OF DEPENDS ON THAT. RIGHT.

AND THE CITY'S NOT FOR CLARIFICATION PURPOSES.

WE'RE NOT RESPONSIBLE FOR THAT COLLECTION. THAT'S NOT OUR 97% RATE COLLECTION.

THAT IS. CORRECT. THAT'S THE TAX TAX COLLECTOR WE'RE WORKING.

I JUST WANT TO BE CLEAR BECAUSE PEOPLE MAY THINK THAT WE'RE COLLECTING AT 97%.

THAT'S NOT OUR THAT'S NOT OUR BURDEN. NO, MA'AM.

YEAH. WE DO NOT. THAT'S NOT A NUMBER WE CAN CONTROL.

ARE. WE WAITING FOR ANOTHER SLIDE THAT'S GOING TO HAVE THE TOTAL BUDGET NUMBERS? YES, SIR. OKAY, I'LL WAIT. THEN. ALL RIGHT. SO THIS KIND OF GIVES US AN OVERVIEW.

[01:35:05]

AND THEN WE'LL WORK INTO 27. SO OUR REVENUES PROJECTIONS TO COMING OUT OF FY 26 IS AT ONE IS AT 173 MILLION.

AND THEN OUR EXPENSES ARE PROJECTED RIGHT NOW AT 178 MILLION.

SO WHICH GIVES US THAT DIFFERENCE OF THAT 4.5, WHICH IS ENDING FUND BALANCE, IS THAT 36,000,892, WHICH LEAVES US AT A 21% FUND BALANCE. JUST FOR CLARIFICATION, WHAT PERCENT DID ARE WE SUPPOSED TO HAVE OR DID WE AGREE TO. 10%. 20%.

20%? CORRECT. THAT'S WHAT WE'RE CURRENTLY REQUIRED.

THIS IS BASED ON WHAT TAX RATE. SO 26 IS A CURRENT TAX RATE AND THEN.

27 PROPOSED. THESE NUMBERS ARE AT OUR CURRENT TAX RATE.

RIGHT. SO. 27 PROPOSED OR PROJECTED BUDGET RIGHT NOW.

AT OUR STAYING AT OUR CURRENT TAX RATE. SO THAT REDUCED THAT IS INCREASED.

SO WE'RE AT 174 ON REVENUES. AND THEN EXPENSES ARE AT 180.

SO THAT GIVES US A DIFFERENCE OF THAT 6.1 WHICH LEAVES OUR FUND BALANCE AT 30,724,000.

ALL RIGHT. SO THAT'S A 17% FUND BALANCE RIGHT.

BUT DOES THAT INCLUDE THINGS LIKE THE 2% COLA.

YES, SIR. IT INCLUDES ALL CONTRACTUAL WAGES. INCLUDES THE TWO THE 2% COLA.

IT INCLUDES THE SUPPLEMENTALS THAT ARE APPROVED THUS FAR.

YEAH. EVERYTHING THAT THAT WE KNOW IS COMING DOWN THE LINE IS IN THESE NUMBERS.

OKAY. AND THAT ALREADY INCLUDES THE SAVINGS FROM A HIRING FREEZE.

YES. THESE ARE THESE ARE INCLUDING SAVINGS. TRAVEL BY 60%.

CUTTING TRAVEL OPERATING. SO WE DID PRIOR BUDGET.

WE WERE AT OUR EXPENSES WERE AT 182. SO WE HAVE GOTTEN IT DOWN TO 180.

SO WE'VE CUT ABOUT TWO POINT. IT'S ABOUT 2.2.4 IS WHAT WE'VE CUT SO FAR.

WHAT WE'VE BEEN ABLE TO NOT CUT, REDUCE. AND MAYOR IF I CAN.

JUST. AND AMY STATED SOME OF THIS JUST FOR CLARIFICATION, WE'RE LOOKING RIGHT NOW AT TAKING INTO ACCOUNT WHERE, WHERE WE NEED TO BE IN TERMS OF EXPENDITURES.

SO WE TALK ABOUT, YOU KNOW, THIS IS BASED ON THE CURRENT TAX RATE, 6.659.

THIS INCLUDES THE 5% FOR POLICE AT 1.2 MILLION FIRE 3%, 727,000.

THE PROPOSED COLA AT ABOUT FOR CIVILIANS AT ABOUT 800,000.

THE TRANSFERS THAT WE NEED FOR THE EMPLOYEE BENEFITS FUND, AS WELL AS THE STOP LOSS INCREASE ON THE EMPLOYEE BENEFITS, CAPITAL RESERVE, FIRE PENSION INCREASE WATER AND SOLID WASTE TRANSFERS, SUPPLEMENTS, THE ESSENTIAL SUPPLEMENTS.

SO ALL THESE ARE ESSENTIALLY REFLECTED IN THIS.

THE NEXT SLIDE WILL GO INTO SOME VARIABLES AS TO KIND OF WHERE WE WANT TO END UP IN TERMS OF THE FUND BALANCE.

BUT RIGHT NOW WITH ALL THOSE THINGS AT THE CURRENT TAX RATE, IT WOULD BE 17% GENERAL FUND FUND BALANCE.

SO AT THE CURRENT TAX RATE, IT'S NOT TAKING INTO ACCOUNT THE INCREASE FROM PROP AYE BECAUSE THE NUMBERS THAT WE THIS IS NOT TAKING THAT INTO ACCOUNT.

THIS IS AT THE CURRENT TAX RATE. I JUST WANT TO.

THIS IS AT THE CURRENT TAX. RATE CURRENT TAX.

RATE. NOT US RAISING IT UP TO THE PREVIOUS SLIDE POINT TO SOMETHING.

SO TO YOUR POINT, IF YOU SAID NO, NO, NO TAX RATE INCREASE, ABSOLUTELY.

THE DEFICIT WOULD GO FROM 6.1 MILLION TO ABOUT 9.45 MILLION.

RIGHT NOW. IF YOU IF YOU STAYED AT THE. IF I'M STATING THAT CORRECTLY, IF WE STAYED AT THE CURRENT TAX RATE.

TO SIX POINT. AND DID NOT INCREASE THE RATE TO COMPENSATE FOR THE ADDITIONAL INS, THE DEBT SERVICE, IT WOULD HAVE TO COME OUT OF THE O AND M, WHICH MEANS WE WOULD NEED TO REDUCE THE O AND M TO COVER THAT.

I'M JUST I WON'T I JUST WANT TO CLARIFY THAT THAT IS NOT US TAKING THE INCREASE AND ADDING IT TO THE TAX, WHICH THE VOTERS ALREADY APPROVED BECAUSE THEY APPROVED PROP A, THIS IS US KEEPING IT CURRENT AT WHAT IT IS NOW.

SO CORRECT. SO THIS THIS IS THIS IS KEEPING OUR TAX RATE AT THAT 0.659663.

SO WE'RE DOING THAT WITH US BEING ABLE TO KEEP THAT TOTAL TAX RATE THE SAME.

YOUR O RATE DROPS BECAUSE YOUR DEBT SERVICE RATE WENT UP BY THAT 3.3 CENTS.

OKAY. SO THIS IS SO THAT MEANS YOUR YOUR O AND M PROJECTED REVENUE IS IS JUST OVER 49 MILLION.

OKAY. AND THAT'S WHAT'S INCLUDED IN THIS IN THIS PROJECTED 27.

HOWEVER, COMMA, WE HAVE THE ABILITY TO GO BACK AND CAPTURE THAT POINT TO WHATEVER THE WHATEVER THE WHATEVER THE NUMBER IS, BECAUSE THAT SHOULD IF WE DON'T INCREASE IT.

[01:40:02]

AND, AND I THINK WE'LL SEE IN THE NEXT SLIDE THAT THAT YOU'LL SEE YOU'LL SEE WHAT HAPPENS WHEN WE ADD THAT.

OKAY. BUT ON ANOTHER NOTE, I GOT ONE MORE THING BEFORE WE MOVE ON TO THE NEXT SLIDE. THE STATE REQUIRES WHAT PERCENT TO HAVE IN THE FUND BALANCE.

THERE'S NO THERE'S NO RULE. GFOA STANDARDS ARE TWO MONTHS.

SIX, 16.5 ROUGHLY FOR GFOA STANDARDS. OKAY. BUT WE SAID WE SAID THAT IS WHAT.

THE 20% IS. OUR IS OUR IS OUR. WHAT WE HAVE IN OUR 26 BUDGET.

AND HAVE IT. HOW LONG HAS IT BEEN THAT AND WHEN DO WE SET THAT? DID WE SET THAT RECENTLY OR HAS IT ALWAYS BEEN THAT OR WHAT WHAT'S WHAT'S THE WHAT'S THE METRIC ON THAT? I'VE BEEN HERE FOR FOUR YEARS AND IT'S BEEN 20% FOR THE FOUR YEARS I'VE BEEN HERE.

SO I DON'T KNOW BEFORE THEN. SO STANDARD IS TRYING TO INCREASE IT TO 25.

LIKE THE WATER FUND IS 15. I THINK THAT'S BEEN WE'RE TRYING TO INCREASE IT, BUT AS FAR AS I AS AS LONG AS I CAN RECALL, IT'S BEEN. 20. 20%. OKAY. JUST THE STANDARD. OKAY.

WHY ARE AND THIS IS A QUESTION ABOUT THIS SLIDE.

I'LL BE HAPPY TO HEAR. WHY ARE INDUSTRIAL PAYMENTS GOING DOWN $1 MILLION IN 2027? BECAUSE IF ANYTHING ON THIS CHART THAT SHOULD BE GOING UP BECAUSE.

WE MIGHT HAVE SOME ABATEMENTS THAT DROPPED OFF. I'LL HAVE TO LOOK AT IT. BUT THOSE ARE.

DROPPED OFF. THAT ARE OUT OF THEIR TERM. I'D HAVE TO LOOK AT IT FOR SURE.

I WOULD MAKE THEM GO UP. THAT WAS MY QUESTION.

I'VE BEEN ASKING ABOUT BECAUSE IF ABATEMENT DROPS OFF THE BOOK, THAT MEANS THE REVENUE SHOULD GO UP, NOT GO DOWN. WE'RE TALKING ABOUT ON THE THIRD.

I KNOW RIGHT. I'VE BEEN. THAT LINE ITEM HERE WOULD WOULD DECREASE THE ACTUAL INDUSTRIAL PAYMENTS LINE ITEM THERE WOULD DECREASE.

WOW. YEAH, BUT I GET IT. BUT FOR SOME YEARS WE'VE BEEN SAYING WHEN THESE ABATEMENTS FALL OFF THE BOOKS IN 2027, MORE REVENUE WILL COME TO THE CITY. THAT'S WHAT I THAT'S WHAT I'VE BEEN TOLD MOST THIS YEAR.

AND THIS YEAR WE HAVE A LOT. SOME OF THESE THOUGH, ARE ACTUALLY RELATED TO IDAS.

AND IF YOU RECALL, THERE'S A SEVEN YEAR CYCLE.

AND SO WE'RE GOING INTO THAT FINAL PART OF THAT SEVEN YEAR CYCLE WHERE THOSE PROCEEDS WILL DROP.

RIGHT. WELL, IT DOESN'T. REALLY. ADD UP. WHAT WHAT IS THAT MILLION.

WHAT WHERE WHERE'D THAT COME FROM? WHAT THE MILLION THAT WE'RE LOSING FROM 26 TO 27.

WELL WE WE WE CAN GET THOSE. I CAN GET THAT TO YOU.

I'D HAVE TO LOOK. I'D HAVE TO LOOK AT EACH SINGLE LINE ITEM THAT'S MADE UP IN THOSE INDUSTRIAL PAYMENTS AND LOOK AND SEE WHERE THAT, WHERE IT DROPPED OFF AT. YEAH. BUT I CAN DO THAT. THAT'S IMPORTANT. YES. AND WE ARE SENDING BILLS TO ALL THESE.

CORRECT? YES, SIR. AND WHAT WHAT CITY MANAGER BOONE IS SAYING IS BECAUSE THEY.

SO AT THE LAST PART OF THAT SEVEN YEAR CYCLE, IT DOES GO FROM 80% TO 75% BY CONTRACT.

YEAH. RIGHT. YEAH. I THOUGHT IT WAS GRADUALLY GOING UP SO THAT WE GOT MORE REVENUE TOWARDS THE END OF THE CONTRACT.

I MEAN, EACH NEW ONE COULD BE NEGOTIATED DIFFERENTLY AS WE MOVE FORWARD.

BUT RIGHT NOW THE MAJORITY OF THE ONES THAT WE HAVE, THEY THEY DROP.

THEY DROP IN. THE FINAL YEAR. AND MOST MANY, MANY OF THEM, IF NOT MOST ARE NOW DROPPING OFF.

SO IF I'M UNDERSTANDING CORRECTLY, WHAT YOU'RE SAYING IS IT'S EMPTY.

AFTER WE AFTER WE AFTER THAT IT DROPS OFF IN 27, THEN IT WILL INCREASE.

IS THAT WHAT YOU'RE SAYING? BECAUSE IT HAS A FINAL, A CLAUSE OR YEAR OR WHATEVER IT IS AT 27 IT'LL DROP OFF, BUT ALSO IT'S DECREASING. BUT AFTER THAT POINT IT WILL GO UP.

I THINK THAT'S WHAT PEOPLE ARE TRYING TO HEAR. WE'LL NEED TO RENEGOTIATE.

ALL RIGHT, I GOT YOU. ALL OF. THEM. THAT HADN'T HAPPENED. YET. THAT HADN'T HAPPENED YET. BUT BASICALLY THE FINAL FROM GOING FROM 80 TO 70% IS WHAT WE'RE SAYING IS IT'S DROPPING OFF, BUT IT'S ALSO BEING DECREASED BECAUSE OF THE CHANGE IN WHATEVER IT IS, THE NEXT AGREEMENT OR WHATEVER COULD POTENTIALLY BE BETTER FOR US. BUT IT'S 27 THAT WE'RE LOOKING AT THAT THIS IS TRANSPIRING.

IN MOST OF THESE DROP. MOST OF THESE ARE UP IN 29.

BUT BUT SEE THAT? SEE, MR. MANAGER, AND I KNOW THIS IS NOT ON YOU, BUT IN 2021, WHEN I FIRST GOT ON COUNCIL, I WAS SOLD IN 2027. WE WOULD SEE INCREASES BECAUSE OF THIS REVENUE FALLING OFF THE BOOKS AND IT'S ON THE RECORD.

I CAN GO BACK AND FIND IT. YEAH, AND TO BE CLEAR, BECAUSE I KNOW IT GETS THERE'S A LOT OF AGREEMENTS OUT THERE IN THE EDA SECTION, WHICH AGAIN, ARE THESE SEVEN YEARS THAT DROP OFF AS YOU GET TOWARDS THE END OF THEM.

THEY'RE ALSO ABATEMENT AGREEMENTS. AND SOME, WHEN AMY MENTIONED DROPPING OFF, IF THE ABATEMENT DROPS OFF.

YEAH, THAT'S DEFINITELY GOOD NEWS FOR US. BUT THOSE ARE ALL DIFFERENT.

AND SO WE CAN CERTAINLY GET YOU A LIST OF, YOU KNOW WHAT, BASICALLY WHAT WE'RE ABATING NOW AND WHEN WHEN THOSE THINGS END.

AND SO NAT GAS THEIR ABATEMENT DROPPED OFF THIS YEAR.

AND THAT WAS AN ADDITIONAL $3 MILLION IN REVENUE FOR, FOR THE CITY.

SO WHAT YOU'RE TELLING ME IS THERE ARE NO AND I'M NOT TALKING ABOUT THE THE OTHER ONE, THE IDEAS I'M TALKING ABOUT ABATEMENTS.

[01:45:04]

I WOULD HAVE TO LOOK TO SEE. I DON'T WANT TO ANSWER AND GIVE A WRONG ANSWER. I HAVE TO LOOK AND SEE FOR SURE. BUT THE NAT GAS FOR SURE IS NOT IN 27.

SO THERE'S GOING TO BE A BIG DIFFERENCE THERE.

AND THEN JUST KIND OF DEPENDS ON THE OTHER ONES.

I'D HAVE TO LOOK AT EACH ONE AND SEE EXACTLY.

AND I'VE DID THIS MONTHS. THIS IS MONTHS BACK, SO I DON'T HAVE IT IN MY MEMORY.

SO I'D HAVE TO ACTUALLY LOOK AND SEE. OKAY. IS THERE ANOTHER SLIDE WITH THE NUMBERS? BECAUSE I'M TRYING TO FIGURE OUT WHAT IF WE APPLY THE RATE THAT WAS APPROVED BY VOTERS ON PROP AYE OF THE 0.1675963, WHAT OUR FUND BALANCE WOULD BE. OKAY, SO ON THIS SLIDE, WE HAVE THE DIFFERENT TAX RATE OPTIONS.

SO OUR, THE CURRENT ADOPTED RATE OF THIS, THE 0.659663.

WITH OUR PROJECTIONS OF REVENUE AND OUR EXPENDITURES, WE GIVE AN ENDING FUND BALANCE OF THE 30,000,007, 24 AND 17% FUND BALANCE. AS THE PREVIOUS SLIDE SHOWED, NO NEW REVENUE RATE IS AT THE NO NEW REVENUE RATE, WE WOULD HAVE A TOTAL INCREASE REVENUE. THE TOTAL REVENUE WOULD BE PROJECTED AT 176 708.

EXPENDITURES ARE GOING TO REMAIN THE SAME ON ALL THESE SCENARIOS. ENDING FUND BALANCE OF THAT 33,000,402 FOR A 19% FUND BALANCE.

THAT CURRENT RATE PROPERTY. THE CURRENT RATE PLUS THE ADDITIONAL DEBT TO KEEP US AT THAT PLUS ADDITIONAL DEBT, WHICH WOULD PUT US AT THE 0.692802. REVENUE IS AT ONE.

77,000,680, WHICH WOULD GIVE US THAT 34,000,374 OR THE 19% FUND BALANCE.

IF WE GO TO THE 18 TO 21 ADOPTED RATE OF THE 0.71, THAT WOULD GIVE PROJECTED REVENUE AT ONE.

79 MILLION 179,000,005. 75 WITH A PROJECTED ENDING FUND BALANCE OF 36,000,268 FOR A 20% FUND BALANCE, WHICH IS TECHNICALLY WHERE WE ARE REQUIRED TO BE AT THIS MOMENT.

SO WITH THAT BEING SAID, THESE ARE THE DIFFERENT SCENARIOS.

AS YOU CAN SEE, THE VOTER APPROVAL GETS US TO A 23% FUND BALANCE.

BUT THIS KIND OF BREAKS IT DOWN. SO YOU CAN SEE, WHERE WE WOULD BE AT THE DIFFERENT TAX RATES.

AND THAT AND THE POINT OF THAT, YOU KNOW, IS TO KIND OF.

GUIDANCE ON, YOU KNOW, OUR EXPENDITURES ARE OBVIOUSLY OUTGROWING OUR REVENUES.

SO IN ORDER TO CLOSE THAT GAP, WHAT WE NEED TO DO TO GET THERE.

AGAIN, LIKE I SAID IN THE OPENING, YOU KNOW, TAX RAISING TAX RATES IS NOT A LIGHT SUBJECT.

AND I COMPLETELY UNDERSTAND THAT THAT'S THAT'S NOT I GET IT.

BUT WHEN YOUR EXPENSES ARE CONTINUING TO GROW, WE HAVE TO DO SOMETHING AS A CITY.

AND THAT'S THE FIRST STEP THAT WE NEED TO START LOOKING AT AND MEET IN THE MIDDLE, YOU KNOW, AND, AND JUST FIGURE IT OUT BECAUSE OTHERWISE IT'S GOING TO TAKE US SIX TO 6 TO 9 YEARS TO GET THAT GAP, TO GET THAT GAP CLOSED. DO WE WANT TO DO IT IN THE NEXT FEW YEARS? YOU KNOW, IT DEPENDS ON HOW LONG YOU WANT TO PUSH IT OUT. RIGHT.

I DO TOO. ON THIS ON THIS LAST SLIDE. CHARGES FOR SERVICES ALSO HAS DECREASED EXPONENTIALLY.

WHY? WHY IS THAT? WHAT. WHAT SERVICES DID WE DO A REDUCTION.

I MEAN WHY ARE WE SEEING A REDUCTION IN CHARGE FOR SERVICES.

WE WENT FROM 7,000,384 AND YOU'RE PROJECTED 27 IS 6 MILLION 963.

WHAT WHAT'S GOING TO CHANGE TO REDUCE THAT. SO AGAIN I'D HAVE TO LOOK AT EACH SINGLE LINE ITEM TO SEE EXACTLY WHERE THOSE REDUCTIONS ARE AT.

BUT THESE ARE ALL PROJECTIONS THAT HAVE THAT WE'VE WENT THROUGH THAT THE DEPARTMENTS HAVE GIVEN US THAT FOR WHAT YOU KNOW, AND IT'S ALL AN ESTIMATE AND IT COULD BE MORE.

I MEAN, HOPEFULLY IT IS MORE, BUT THESE ARE ALL, THESE ARE ALL ESTIMATES.

WELL. ONE THING ABOUT IT, LIKE OUR HEALTH DEPARTMENT, YOU KNOW, WE'VE LOST A LOT OF FEES BECAUSE OF STATE LAW.

SO I WOULD ASSUME THAT IT WOULD FALL UNDER SOME OF THE FEES THAT WENT AWAY.

WE CAN GET YOU SOME DETAILS ON THAT BECAUSE IT COULD BE MS, IT COULD BE WEED BILLING.

IT COULD BE VITAL STATS. I KNOW. WE. LOST. WE LOST GAMING.

THERE'S LOTS OF THINGS THAT WE WE. GAMING. WAS.

800,000. YEAH, WE LOST GAMING. SO IT ADDS UP.

I MEAN EVEN THE SMALL AMOUNTS THEY END UP, THEY ADD UP AND THEN.

BRING. IT BACK. AND THEN YOU'RE LEFT WITH WHAT YOU'RE LEFT. I MEAN YOUR ACTUALS FOR 27 WAS JUST WAS 6.7.

STOP PLAYING. YEAH. I HAVE NOT STOPPED PLAYING.

YEAH. SORRY WE GOT DISTRACTED. OH YOU'RE FINE.

WELL AND MY QUESTION IS JUST HOW MUCH? BECAUSE I SAW THE DECREASES IN FREEZES AND TRAVEL AND ALL THE

[01:50:03]

I DIDN'T SEE ANY OF THAT. IS THERE SOMETHING THAT WE SUPPOSED TO.

SO LET ME JUST SAY, AS YOU KNOW, YOU KNOW, WE'VE BEEN DISCUSSING UPDATING OUR ABATEMENT POLICIES.

AND I THINK WE'VE TALKED ABOUT OUR EDA AGREEMENTS.

WE'VE TALKED ABOUT FUTURE ABATEMENTS. SO A LOT OF THESE POTENTIAL REVENUES ARE ONLY GOING TO BE REALIZED MOVING FORWARD.

AND WE CAN'T REALLY EVEN THOUGH WE'RE GOING TO UPDATE OUR POLICY WE CAN'T GO BACK AND RENEGOTIATE PRIOR AGREEMENTS.

SO WE CAN'T PUT IT IN THE BUDGET TO SAY, YOU KNOW WHAT, WE'RE GOING TO GO RENEGOTIATE ALL THESE IDEAS AND GET 80% INSTEAD OF 70.

SO HOPEFULLY THIS TIME NEXT YEAR, YOU KNOW, WE'LL HAVE WE'LL HAVE A BETTER BEAD ON WHAT, WHAT THAT MIGHT LOOK LIKE, BUT BECAUSE WE JUST DON'T HAVE THEM, WE DON'T HAVE NEW ONES CURRENTLY OR RENEGOTIATED ONES.

WE CAN'T PUT THAT IN THE PROPOSED BUDGET. OKAY, I JUST FOR CLARITY, BECAUSE PEOPLE KEEP INSINUATING THAT THERE'S A MAGIC PILL TO THIS AND THERE'S NOT. AND IT TAKES TIME. AND SO JUST FOR THE RECORD AND FOR PEOPLE TO HEAR THAT WE'RE DISCUSSING, OH, WELL, WE NEED TO MAKE THIS ONE DO THAT OR THAT ONE DO THIS OR THIS OR THAT.

AND ALL OF THAT DOESN'T HAPPEN OUT OF THIN AIR.

RIGHT? RIGHT. AND I KNOW WE'RE READY TO BREAK FOR LUNCH, BUT CAN I, CAN I GET THE ENDING FUND BALANCE PERCENTAGE IF WE DO THE POINT? OKAY. I'M ASSUMING IT'S GOING TO BE 18%. IT MAY BE.

POINT SIX. AND THEN I'D ALSO LIKE TO KNOW IF IT'S NOT ON A FUTURE SLIDE, WHAT WE WOULD NEED TO CUT THAT -6.1 MILLION.

WE'RE PROJECTING FOR 2027. ASSUMING WE GET THE RATE OF THE 0.765.

WHAT WE NEED TO CUT THAT 6.1 MILLION IN ORDER TO GET TO A 20% FUND BALANCE.

FUND BALANCE. LIKE. $1.8 MILLION IN EXPENSES AFFECTS YOUR FUND BALANCE 1%.

WE HAVE TO CUT $1.8 MILLION TO CHANGE THAT BY 1%.

OKAY. SO IN ORDER TO ASSUMING IT'S GOING TO BE 18% IN ORDER TO GET TO 20%, IT WOULD BE BASICALLY 3.6 MILLION.

WE'RE GOING TO HAVE TO CUT. I'M SORRY. I DIDN'T HEAR ANY OF THAT.

SHE SAID THAT YOU HAVE TO CUT EXPENSES, 1.8 MILLION TO GET THE FUND BALANCE UP 1%.

SO ASSUMING THE 0.675, WHATEVER RATE THAT VOTERS APPROVED ON PROP AYE GETS US TO AN 18% FUND BALANCE, WE WOULD HAVE TO CUT 3.6 MILLION FROM THE 2027 BUDGET TO KEEP THE FUND BALANCE AT OUR OWN APPROVED 02,020%. SOUNDS ABOUT RIGHT. OKAY. AND IS THAT.

HAVE YOU FINISHED THE NUMBERS? 18%. YEAH. ALL RIGHT.

GREAT. THANK YOU. YOU'RE WELCOME. ALL RIGHT. SO THAT'S ALL ACTUALLY THAT WE HAVE TODAY. SO NOW WE WOULD LIKE TO THANK YOU FOR YOUR TIME AND YOUR SUPPORT.

WHILE WE'RE PREPARING, WE CONTINUE TO PREPARE THE 27 BUDGET.

WE APPRECIATE EVERYONE'S EFFORTS IN PARTNERSHIP AS WE WORK TOGETHER TO DEVELOP A SUSTAINABLE BUDGET THAT SUPPORTS THE NEEDS OF OUR COMMUNITY WHILE MAINTAINING A SOUND FINANCIAL STEWARDSHIP. BUT WE WOULD LIKE AT THIS TIME TO ASK YOU TO PROVIDE CLEAR GUIDANCE AND DIRECTION AS WE FINALIZE THE 27 PROPOSED BUDGET THAT WILL BE PRESENTED ON AUGUST THE 18TH. YES. MR. TURNER, MR. MANAGER. I THINK IT'S IMPORTANT WE KIND OF TALK THROUGH SOME OF THE PAST, YOU KNOW, FUND BALANCES. CAN YOU SPEAK TO WHAT HAPPENS WHEN WE HAVE STORMS? BECAUSE I WANT TO BE TRANSPARENT ABOUT HOW THE FUND BALANCE GOT TO THAT 51 MILLION RANGE AND HOW MANY STORMS HAPPENED AND WHAT HAPPENED TO THE SALES TAX AFTER THOSE STORMS. I DON'T I DON'T WANT PEOPLE TO THINK IT JUST DECREASED.

NO, THOSE STORMS, I KNOW WHAT IT DONE. SO I WANT YOU TO SPEAK TO THAT.

I THINK IT WAS A IT'S A COMBINATION. YOU KNOW, WHEN YOU HAVE A STORM THE CONCERN IS BECAUSE GENERALLY THEY ARE FOLLOWED WITH A LOT OF SPENDING. AND AGAIN, THESE ARE BIG STORMS AND THERE'S NO DOUBT IT INCREASES THINGS LIKE SALES TAX.

THERE'S NO DOUBT WE'VE, WE'VE BENEFITED FROM THAT LOOKING BACK TO THE MID 2000 AND, AND I THINK THE COMBINATION OF A VERY FISCALLY

[01:55:06]

AND SO AGAIN, WE'VE TALKED ABOUT IN HERE, WHAT, WHAT IS AN IDEAL FUND BALANCE? I THINK IT'S, IT'S, IT'S QUITE PROPER TO SAY TOO HIGH OF A FUND BALANCE IS NOT IDEAL BECAUSE WE DON'T NEED TO BE SITTING ON TAXPAYERS DOLLARS.

BUT THE FLIP SIDE IS AS YOU BRING UP, WE HAVE THESE STORMS, THERE'S USUALLY A LAG BETWEEN WHEN THOSE TAX DOLLARS START TO HIT.

THERE'S A LAG BETWEEN WHEN WE GET ASSISTANCE MAYBE FROM THE STATE OR THE FEDERAL GOVERNMENT.

AND SO AGAIN, GOING BACK TO THE GFOA RECOMMENDATION OF, YOU KNOW, RESERVES AND AGAIN, WE THINK IN TERMS OF STORMS, BUT, YOU KNOW, WE'VE HAD PANDEMICS AND, YOU KNOW, THERE ARE ICE STORMS, THERE'S ALL KINDS OF ISSUES THAT CAN COME ALONG THAT THAT CAN BE CHALLENGES. SO IN OTHER WORDS, I THINK A GOOD WAY TO THINK ABOUT IT IS TERMS OF MONTHS.

AND SO AGAIN, AS WE MENTIONED, I THINK 16.5% IS ABOUT TWO MONTHS.

AND SO AT THE END OF THE DAY, WHAT ARE WE COMFORTABLE WITH? MY, MY FOLLOW UP IS, YOU KNOW, EVERY COUNCIL IS DIFFERENT JUST BECAUSE ONE COUNCIL CHOSE TO DO SOMETHING ONE WAY DOESN'T NECESSARILY MEAN IT HAS TO BE THE STANDARD FOR EVERY COUNCIL. BUT I JUST WANT TO MAKE IT CLEAR TO THIS COUNCIL, MY COLLEAGUES, IT'S UP TO US AS A GROUP HOW WE WANT TO MOVE FORWARD, AND MAYBE THERE'S SOME THINGS WE MAY NEED TO WORKSHOP AND TALK ABOUT BECAUSE, YOU KNOW, WHEN I FIRST CAME ON, WE WERE ACTUALLY COMING OFF A BIG STORM THAT JUMPED OFF ON BALANCE.

SO OF COURSE, YOU WANT TO TAKE CARE OF PUBLIC SAFETY.

YOU WANT TO DO THE COST OF LIVING RAISE FOR EVERYBODY.

YOU WANT TO INCREASE SERVICE, YOU WANT TO INVEST MORE INTO INFRASTRUCTURE.

BUT EVENTUALLY THE MORE YOU DO, THE MONEY HAS TO COME FROM SOMEWHERE.

BUT AT THE SAME TIME, I THINK IT'S IMPORTANT TO DISCUSS, WELL, DO WE WANT TO GO? AND I KNOW I ONLY HAVE A FEW MORE MONTHS, BUT YOU GUYS WILL BE HERE IN THE FUTURE.

YOU GUYS NEED TO GET ON THE SAME PAGE ABOUT WHAT YOU WANT TO BE FINANCIALLY, BECAUSE THE 20% IS SOMETHING WE COULD LITERALLY AFFORD TO DO.

BECAUSE I'M NOT GOING TO SUGARCOAT IT. WE WERE FRESH OFF A STORM AND IT WAS EXTREMELY HIGH FUND BALANCE.

WELL, AND SOME WANTED TO KEEP IT HIGHER. WE ALL WE'RE PROBABLY GOING TO GO TO 25.

WE DISCUSSED THAT. THAT'S RIGHT. AND IT'S DIFFERENT.

IT'S A IT'S IMPORTANT TO KNOW HOW YOU OPERATE WHEN YOU HAVE MONEY IN THE BANK AND HOW YOU OPERATE WHEN YOU DON'T HAVE MONEY IN THE BANK, BECAUSE WHEN YOU DON'T HAVE MONEY IN THE BANK, THEN THAT CHANGES THE WAY THAT YOU DO THINGS. HOWEVER, I THINK IT'S ALSO IMPORTANT TO. I HEARD YESTERDAY THAT WE'RE RESPONSIBLE FOR PUBLIC SAFETY CONTRACTS, INCREASES AND ALL OF THESE THINGS, WHETHER WE HAVE THE MONEY OR NOT.

AND THAT MATTERS WHEN 50% PERCENT OR 60% OR 65% OF THE BUDGET IS GOING TO ONE PLACE.

SO WHEN WE TALK ABOUT NUMBERS, WE'VE GOT TO TALK ABOUT THEM REALISTICALLY BECAUSE THAT MATTERS.

WELL. AND ALL THESE ARE VERY GOOD CONVERSATIONS.

I KNOW WHAT WE'RE LOOKING FOR NOW. AND WE GOT AN HOUR TO A COUNCIL MEETING AND THEY'RE GOING TO NEED DIRECTION BEFORE WE BREAK.

IS THAT WHAT TAX RATE. AND I KNOW FOR FROM MY STAND, AND I'VE CERTAINLY HEARD COUNCILMAN CRENSHAW HAS BEEN VERY CLEAR ON THAT.

AND I APPRECIATE THAT. AND I CERTAINLY I KNOW FOR ME, LOOKING AT IF WE WENT TO $0.71, WHICH WOULD GET US IN 20%, WHICH WOULD WHERE WE'D BE COMPLIANT, WHICH IS WHAT WE'RE CURRENTLY WITH, PAST COUNCIL SAID WE WANT TO BE AT 20%.

SO IF WE WANT TO BE COMPLIANT, LIKE ON A $300,000 HOUSE, THAT'S $150 A YEAR INCREASE IN PROPERTY TAX ON A $100,000, IT'S $50. I MEAN, IT ALL ADDS UP, BUT I KNOW WE DON'T GENERALLY, I HADN'T GOTTEN ANY CALLS.

RECENTLY ABOUT US SPENDING LESS MONEY ON REPAIRS AND OR US NOT GETTING THINGS DONE.

AND, YOU KNOW, MY CONCERN IS WE WANT TO CONTINUE TO PROVIDE THE LEVEL OF SERVICE THAT PEOPLE HAVE EXPECTED.

AND IF IF WE'RE PULLING BACK ON THAT, THAT THAT'S CERTAINLY NOT GOING TO HELP US.

AND SO I WOULD BE INCLINED WITH OUR 20% RULE TO GO TO THE $0.71, WHICH WOULD BE AN INCREASE ABOVE OUR VOTER, WHAT WAS APPROVED ON BY THE VOTERS.

AND THAT WOULD ALLOW US, YOU KNOW, THEN WE'RE GOING TO BE LOOKING AT IT IN MARCH TO SEE WHERE WE'RE AT, BECAUSE WE COULD ALWAYS GO BACK DOWN NEXT YEAR IF WE SAW A NEED TO DO THAT.

BUT THIS IS SOMETHING THAT HAS BEEN AND WHEN WE LOOK AT NEIGHBORING CITIES, I KNOW ON SOCIAL MEDIA,

[02:00:01]

AND IT'S JUST, YOU KNOW, THAT'S ABSURD. I MEAN, YOU KNOW, A LOT OF OTHER CITIES CURRENTLY ARE AT A HIGHER RATE THAN WE ARE.

CITIES THAT PEOPLE LIKE YOU KNOW, THAT GETS REFERRED TO A LOT, WHETHER IT'S BAYTOWN OR WACO.

I KNOW THOSE ARE CITIES PEOPLE REFER TO ME FOR BECAUSE THEY DRIVE DOWN INTERSTATE TEN AND THEY SEE WHAT'S ALL GOING ON OVER THERE, AND THEIR TAX RATE IS HIGHER THAN THAT. SO CERTAINLY WACO'S IS AT $0.75.

SO BUT THAT'S MY THOUGHT. SO I KNOW THAT THEY'RE WANTING TO HEAR FROM ALL OF COUNCIL ON THIS.

SO THIS WOULD BE A TIME TO WEIGH IN BECAUSE THEY'RE GOING TO BE WORKING ON A BUDGET BASED ON WHAT THEY BELIEVE IS GOING TO BE ABLE TO PASS.

AND NOBODY LIKES TO TALK ABOUT, YOU KNOW, TAX INCREASES, I GET IT, BUT I ALSO THINK IT'S OUR RESPONSIBILITY.

WE'RE THE ONES THAT ARE GOING TO DO IT. AND IF WE'RE GOING TO FOLLOW THE 20% RULE, THEN WE WOULD NEED TO DO IT.

IF WE'RE NOT GOING TO FOLLOW THE 20% RULE, WE NEED TO LOOK AT EVEN, YOU KNOW, THAT'D BE SOMETHING I'D WANT US TO LOOK AT ABOUT CHANGING, REDUCING, BECAUSE I DON'T I, I HATE TO BE MAKING DECISIONS WHERE WE KNOW WE'RE VIOLATING THE CITY, YOU KNOW, OR OUR OWN ORDINANCES THAT WE PASSED.

OKAY. YEAH. YEAH. I, I YOU KNOW, I LEAN TOWARDS THE CURRENT ADOPTED WITH THE ADDITION OF THE BOND, WHICH I BELIEVE WAS THE 0.675963. YOU KNOW, I, I DON'T COME TO THAT LIGHTLY.

I THINK THAT YOU KNOW, WE CAN MAKE THE BOOKS LOOK GOOD BY GOING UP AND I, I DON'T KNOW THAT PEOPLE EVER SAY, YOU KNOW, IF I GIVE MY GOVERNMENT MORE MONEY, I BELIEVE THEM TO BE MORE EFFICIENT WITH IT NOW THAN THEY WERE IN THE PAST.

AND SO I THINK, YOU KNOW, YOU TAKE THESE TOUGH TIMES, WHICH THEY ARE, AND AND YOU GO, YOU KNOW WHAT IS NEEDED, WHAT ISN'T. AND YOU USE IT TO GET LEAN AND, AND, YOU KNOW, AND THEN WHEN THINGS GET BETTER AND THE BOOKS LOOK BETTER, THEN YOU CAN, YOU CAN DO SOME OF THESE, YOU KNOW, SERVICES AND THINGS OF THAT NATURE.

BUT, BUT RIGHT NOW, I THINK THAT THIS IS A, YOU KNOW, A MOMENT WHERE WE HAVE TO LOOK IN THE MIRROR AND SAY, YOU KNOW, WHAT'S NECESSARY, WHAT ISN'T, AND, AND LET'S SEE WHAT WE CAN KIND OF COME OUT OF THE FIRE LOOKING LIKE.

AND THAT'S WHERE I'M AT. THANK YOU. COUNCILMAN CRENSHAW AND MR. MAYOR, YOU WERE CORRECT EARLIER. YOU KNOW WHERE I STAND AND I, I, I AGREE WITH COUNCILMAN MIKE WILLIAMS. I THINK WE STICK WITH THE CURRENT RATE. WE CAN TALK ALL WE WANT ABOUT IT'S ONLY GOING TO WHAT THE MAYOR IS PROPOSING AT AT $0.71 PER $100 VALUATION IS ONLY $150 A YEAR INCREASE ON A $300,000 HOUSE.

BUT WHAT WE DON'T TAKE INTO ACCOUNT IS THAT PROPERTY VALUES ARE GOING TO INCREASE, AND SO THE TAX BILLS ARE GOING TO GO UP SIGNIFICANTLY.

WE SAW THIS YEAR LAND VALUES IN BEAUMONT BY THE TAX ASSESSOR OR BY JCAD INCREASED SIGNIFICANTLY, WHICH LED TO A LOT OF FRUSTRATED VOTERS. AND SO THOSE INCREASES IN VALUE ALLOW US TO HAVE INCREASES IN REVENUE MOVING FORWARD. I DO WANT TO GET US TO THE 20%, BUT I'M SORRY I AM NOT IN FAVOR OF DOING THAT WITH TAX INCREASES.

I'M IN FAVOR OF DOING THAT WITH SPENDING CUTS.

I BELIEVE THAT WE HAVE JUST BEEN SPENDING TOO MUCH LATELY AND THAT WE CAN ACHIEVE THAT WITH SOME CUTS IN PARTICULAR ONE ITEM ON THE AGENDA TODAY, IS $220,000 FOR A BRAND NEW CONCRETE MIXER.

WHEN, YOU KNOW IF WE'RE TRYING TO FIND WAYS TO, TO, TO CUT AND TO BE LEANER IN THIS BUDGET, SPENDING A QUARTER OF $1 MILLION ON A BRAND NEW CONCRETE MIXER IS JUST ONE EXAMPLE OF WHAT I THINK IS NOT SENDING THE RIGHT MESSAGE TO TAXPAYERS.

WE SHOULD LOOK AT BUYING A USED ONE. I FOUND A USED ONE ONLINE, A 2018 FOR AROUND 70 GRAND.

SO THERE'S, THERE'S $150,000 RIGHT THERE THAT WE SAVE SO WE CAN GET TO THAT 20% WITH SOME ADDITIONAL CUTS.

AND WE DO NOT NEED TO, TO RAISE THE, THE TAX RATE OTHER THAN WHAT COUNCILMAN WILLIAMS SAID, WHICH I COMPLETELY AGREE, WHICH IS WHAT VOTERS ALREADY APPROVED WHEN THEY GAVE US THE PROP A PASSING.

SO WITH THAT I APPRECIATE WHAT YOU'RE SAYING THERE, MISTER MAYOR, BUT I WOULD HAVE TO RESPECTFULLY DISAGREE THAT RAISING PROPERTY TAXES IN BEAUMONT IS ABSOLUTELY THE WRONG THING TO DO AT THIS TIME.

THANK YOU. COUNCILMAN COUNCILWOMAN SHERWOOD. I'M MORE CONCERNED.

[02:05:03]

I'M CONCERNED ABOUT THE PLAN DID. IT'S THE PLAN THAT WE HAVE RIGHT NOW GOING TO GET US TO 20% WITHOUT RAISING TAXES. AND DO WE HAVE PLACES THAT WE HAVE PLANNED? CURRENTLY, RIGHT NOW FOR 26 AND 27, THAT GETS US TO 20%, GETS US TO 20% WITHOUT RAISING TAXES. WELL, AS YOU CAN SEE IN THE OPTIONS, THAT FIRST LINE THAT THE CURRENT ADOPTED, THAT'S WHERE WE ARE NOW. SO JUST EVERYTHING THAT'S PROPOSED THAT'S PROJECTED RIGHT NOW IN THE BUDGET GETS US AT 17% FOR 27, AND THAT'S TAKEN IN EFFECT. ALL THE CUTS THAT WE'VE DONE REDUCES THAT WE'VE DONE SO FAR.

SO THE ONLY THING FROM HERE WOULD BE TO REDUCE MORE EXPENDITURES.

AND WHAT DOES THAT LOOK LIKE. SOME SOME HARD DECISIONS TO BE MADE AT THAT POINT.

WELL DEPARTMENTS HAVE DONE REALLY, REALLY WELL AT AT WORKING AND LOOKING AT EVERY SINGLE LINE ITEM IN THEIR BUDGET AND REALLY GETTING IT TO WHAT THEY ABSOLUTELY NEED OPERATIONALLY AND OPERATIONS IS ONLY A SMALL PART OF OUR BUDGET.

WAGES IS THE BIGGER PART OF OUR BUDGET. AND AND 8% OF THAT WE HAVE NO CONTROL OVER.

SO SO THIS IS MY ISSUE WHEN WE TALK ABOUT. COST OF LIVING INCREASES WAGES EXPENSES, OVERTIME. YOU KNOW, INCREASING PUBLIC SAFETY WHILE HIRING FREEZES IN PLACES WHERE YOU'VE GOT, YOU'VE GOT, YOU'VE GOT VACANCIES.

WHAT DOES THIS LOOK LIKE IMPACTING CITIZENS TO MAKE FURTHER CUTS WHEN THE PRICE OF THINGS ARE STILL GOING UP? I STRUGGLE WITH BEING SOMEWHERE BETWEEN NOT RAISING TAXES AND BEING REALISTIC ABOUT SPENDING.

AND SO MY QUESTION IS, WHAT DOES THESE FURTHER CUTS LOOK LIKE AS TO CITIZEN SERVICES AND WHAT WE PROVIDE AND WHAT THIS LOOKS LIKE ON THE BACK OF OUR CURRENT EMPLOYEES AND HIRING FREEZES AND THEN CUTS. AND YOU'VE GOT WORKERS THAT ARE ALREADY LEAVING THE CITY BECAUSE WE'RE NOT IN THE TOP ECHELON OF WAGES AND PAY AND ALL OF THE THINGS. SO NOW WE'VE GOT TO PROVIDE SERVICES ON A BUDGET THAT'S BEING CUT AND SLASHED AND POSITIONS THAT'S BEING CUT AND SLASHED AND OVERWORKING OUR WORKERS.

I'M TRYING TO FIGURE OUT WHERE WHERE DOES THIS WHAT WHAT DOES THIS LOOK LIKE IN ACTUALITY TO THE CITIZENS.

IF I MAY. I THINK THE FIRST TWO PRESENTATIONS THAT YOU'VE HEARD IS WHAT IT IS, WHAT IT LOOKS LIKE.

THE CITY, I MEAN, BECAUSE WE ARE NOT IMMUNE TO PRICE INCREASES, LIKE YOU'VE SAID, I THINK OUR PROPERTY TAX VALUES INCREASED ABOUT 1% THIS YEAR.

OUR TAXABLE VALUE FROM LAST YEAR TO THIS YEAR.

AND YOU DO SEE THAT OUR EXPENSES WE SO AGAIN, WE ARE NOT IMMUNE TO, TO INFLATION.

WE ALREADY HAVE THOSE CONTRACT CONTRACTUAL INCREASES THAT WE HAVE TO DO.

AND EVEN WITH ALL THAT, HAVING DEPARTMENTS LOOK AT EVERY LINE ITEM OF THEIR BUDGET, WE HAVE GONE FROM ONE SEVEN, $178 MILLION IN EXPENSES PROJECTION 26 TO $180 MILLION.

THAT'S A VERY I WOULD I WOULD SAY, ESPECIALLY CONSIDERING THAT WE HAVE THOSE CONTRACTUAL INCREASES THAT ARE ALREADY BUILT INTO THESE DOLLARS THAT LESS THAN 2% INCREASE IN EXPENSES THAT WE HAVE THERE.

THERE'S THAT. I THINK WHAT SHE'S TRYING TO SAY, THERE'S NOT A LOT MORE ROOM, WIGGLE ROOM TO UNLESS WE START MAKING REALLY, REALLY, REALLY HARD, WHICH IS REDUCING SERVICES IS THE NEXT.

WELL. JUST, JUST REAL QUICKLY BECAUSE I KNOW WE'RE RUNNING, WE'RE RUNNING SHORT ON TIME.

A, A SIGNIFICANT AMOUNT OF SAVINGS BUILT INTO THIS IS THE HIRING FREEZE.

AND THE REALITY IS THERE'S ALWAYS ROOM FOR EFFICIENCY.

BUT THE LONGER WE OPERATE UNDER THAT SITUATION, IT WILL START TO IT COULD IT WILL START TO AFFECT SERVICE DELIVERY. AND SO THE THE THREE THE THREE VARIABLES WE'VE GOT TODAY IS THE PROPERTY TAX, THE FUND BALANCE PERCENTAGE IN THE GENERAL FUND AND THEN EXPENDITURES AND SO ON THE EXPENDITURE SIDE, AGAIN, WE'VE DONE THE HIRING FREEZE. WE ARE CUTTING DISCRETIONARY SPENDING.

WE'VE SLASHED TRAVEL AND TRAINING. WE ARE LOOKING, WE PRESENTED JUST TWO TRANSIT AND, AND LIBRARIES.

JUST SOME PRELIMINARY IDEAS THERE. THERE ARE HUNDREDS AND HUNDREDS OF THINGS THAT THE CITY DOES ON A DAILY BASIS

[02:10:08]

SO I DO WANT YOU SO I KNOW YOU MAY NOT BE FINISHED YET.

YEAH. I'M FINISHED. WELL, YOU NEED TO GIVE THEM SOME DIRECTION.

THEY'RE, THEY'RE LOOKING AT SO THAT IF I'M SAYING THIS CORRECTLY, THEY'RE GOING TO BE PRESENTING A BUDGET TO US BASED ON AN AMOUNT THAT THEY BELIEVE WE WILL APPROVE. SO THAT'S WHY THEY'RE WANTING TO KNOW AT WHAT HOW MUCH WE WANT TO GO UP ON TAXES, IF ANY, SO THAT THEY CAN PREPARE THAT BUDGET THAT WE'RE GOING TO HAVE TO END UP VOTING ON.

SO THIS IS OUR CHANCE TO GIVE THEM SOME VERY SPECIFIC DIRECTION ON WHERE WE WOULD LIKE TO SEE THE TAX RATE BE.

SO THAT'S WHAT THEY'RE ASKING FOR. IF I'M NOT MISTAKEN.

YES. CORRECT. THANK YOU. I'M SOMEWHERE NEAR 069.

SO $0.69. YES. OKAY. COUNCIL COUNCILMAN TURNER.

ALL RIGHT. FIRST THING IS ME PERSONALLY, I'M MORE CONCERNED ABOUT.

WE SAY WE WANT TO HAVE A 20% BECAUSE WE SAID THAT'S WHAT OUR POLICIES WERE.

BUT I NEED TO FEEL CONFIDENT AND COMFORTABLE TO KNOW WHAT WE NEED TO HAVE 20% FOR.

WHAT IS IT GOING FOR? WHAT ARE YOU USING IT FOR? WHAT WOULD BE THE NEED? I CAN'T JUST BLANKETLY RUBBER STAMP IT WITHOUT KNOWING THE SPECIFICS.

THAT'S SOMETHING I'M NOT INTERESTED IN. MY SECOND THING IS WE'RE AT ROUGHLY ROUGHLY 20%.

AGAIN, LIKE I URGE THIS COUNCIL TO STRONGLY CONSIDER IF YOU WANT TO MAYBE MEET IN THE MIDDLE AT A 19% THRESHOLD VERSUS A 20% THRESHOLD.

AND NOW WE GOT AN EASIER GOAL TO REACH YOU. WE DO NOT HAVE TO KEEP IT AT 20%.

WE CAN MAKE IT MORE REASONABLE, SOMETHING THAT WE CAN ATTAIN WITHIN A YEAR.

I STRONGLY CONSIDER US TO THINK ABOUT THAT BEFORE RAISING.

THAT'S VERY LOGICAL. ANOTHER THING IS WE MIGHT NEED TO REVISIT REGULATION OF THE NEW GAMING MACHINES.

AGAIN, THAT IS STILL HAPPENING. WE NEED TO LOOK AT HOW CAN WE REGULATE THE NEW GAMING MACHINES.

AND THAT COULD POSSIBLY BE THAT EIGHT TO I HEAR YOU, BUT THEY COULD POSSIBLY BE THAT 8 TO 800,000 TO $1 MILLION WE'RE LOOKING FOR.

ANOTHER THING THAT WE'RE NOT TALKING ABOUT IS WE'RE LOOKING AT FUEL COSTS.

EARLY I HEARD JUST WITH THE BUS TRANSIT SYSTEM, WE WERE UP 25%.

I CAN ONLY IMAGINE WHAT IT IS STRAIGHT ACROSS THE BOARD.

THINGS ARE GOING UP. PUBLIC SAFETY OVERTIME. WE'RE SAYING IT'S GOING TO BE REDUCED, BUT THAT'S SOMETHING THAT HAS CONSISTENTLY GONE UP FOR YEARS.

THAT'S BEEN AN ISSUE THAT'S GOT US IN THIS PLACE NOT ONLY PUBLIC SAFETY WATER OVERTIME AS WELL.

OUR THREE BIGGEST DEPARTMENTS WE HAVE OTHER INCREASES THAT WE'RE CURRENTLY NEGOTIATING NOW THAT CAN BE DETRIMENTAL TO WHAT WE'RE TRYING TO GET TO WITH 19 OR 20%. SO ALL THESE THINGS NEED TO BE STRONGLY TAKEN INTO CONSIDERATION BEFORE WE MAKE ANY MORE MOVES MOVING FORWARD.

AND I WOULD ASK STAFF RESPECTFULLY, BECAUSE I'VE ASKED THIS IN THE PAST WHEN IT CAME TO CONTRACTS WE ARE STUCK IN.

ONCE WE APPROVE THEM, PLEASE DO NOT BRING A CONTRACT TO CITY COUNCIL THAT WE CANNOT AFFORD BECAUSE ONCE YOU BRING IT TO US, WE DON'T DO DAY TO DAY OPERATIONS. WE DON'T DO THE FINANCIAL PROJECTIONS.

WE DON'T SEE WHAT THE FUTURE LOOKS LIKE. WE NEED TO SEE FINANCIAL FORECASTS AND ANALYSIS BEFORE WE BROUGHT ANY CONTRACT THAT WE ARE CONTRACTUALLY AGREED TO CONTRACTUALLY LOCKED INTO FOR 3 TO 5 YEARS. WHAT IT WOULD DO TO IMPACT THE FUTURE OF THE BUDGET, BECAUSE WE'RE NOT BEING TOLD THAT WHEN THESE CONTRACTS ARE BROUGHT TO US AND THIS IS A PART OF IT.

BUT ME PERSONALLY, I KIND OF WOULD LIKE TO SEE MORE OF A MEET IN THE MIDDLE, MAYBE THE 19% INSTEAD OF THE 20% AND SOMETHING REALISTICALLY, I THINK WE AS A COUNCIL CAN GET TO. AND ONCE WE GET THERE, WE CAN POSSIBLY GO BACK TO THE 20% IN THE FUTURE.

BUT RIGHT NOW, I THINK WE NEED A REALISTIC GOAL WE CAN REACH.

I SECOND, I THINK THAT MAYBE WE NEED TO LOOK AT 18 TO 19%.

WE'RE NOT GOING TO VOTE TODAY ON THIS. SO JUST.

JUST FOR THE RECORD, BUT THANK. YOU. OKAY. ESPECIALLY IF WE ONLY REQUIRED TO DO 16.5, YOU KNOW.

AND WE'RE NOT REQUIRED TO DO THAT. WE'RE NOT REQUIRED. BUT CHRIS SAID, YOU KNOW, WE GOT AT LEAST TWO AND A HALF MONTHS, SO. 16.5 COUNCILMAN HILLIARD. I'M GOING TO I, YOU KNOW, I'M A BIG OPPONENT OF YOU KNOW, I DON'T AGREE WITH TAX AND SPEND.

I THINK THAT WE'RE OVERTAXED. AND I'M GOING TO AGREE WITH COUNCILMAN WILLIAMS. COUNCILMAN CRENSHAW I THINK WE SHOULD KEEP THE CURRENT ADOPTED RATE.

WE SHOULD LEARN TO LIVE WITHIN OUR MEANS. I THINK THERE'S A LOT OF THINGS AS FAR AS HOW WE COLLECT OUR MONEY.

[02:15:05]

AND SO, YOU KNOW, I AGREE, I THINK THE CURRENT ADOPTED I AGREE WITH BOTH COREY AND MIKE COUNCILMAN THAT WE KEEP IT AT THE CURRENT.

WE LEARN TO LIVE WITHIN OUR BUDGET. AND WE WE, WE START COLLECTING THE MONEY THAT IS OUT THERE THAT WE RAISE.

SERVICE RATES. I MEAN, THAT'S WHAT BUSINESSES DO.

I MEAN, ME AND MIKE AREN'T SELLING OUR GOODS OR.

COREY OR ANYBODY ELSE UP HERE OF WHAT WE DID IN 1960 OR 1970.

YOU'VE GOT TO WHEN THINGS GO UP, YOU'VE GOT INCREASED PRICING.

AND SO, YOU KNOW, FROM SOLID WASTE TO THE THINGS THAT WE DO THAT ARE FOR FREE, THAT'S SOLID WASTE.

NEED TO CHANGE. WE NEED TO COLLECT THE MONEY OUT THERE FROM OUR WATER BILL, EVEN IF IT GOES TO THE ENTERPRISE FUND, IF WE HAVE, IF WE HAVE TO USE IT FOR THE WATER DEPARTMENT OR FOR SOLID WASTE, IT'S NOT COMING OUT OF OUR OUT OF OUR OUT OF OUR OUR FUND BALANCE.

AND SO, YOU KNOW, I THINK THERE'S A LOT OF THINGS THAT WE NEED TO TIGHTEN OUR BELT ON BEFORE WE START GOING TO THE PEOPLE AND SAYING, HEY, WE CAN'T LIVE WITHIN OUR MEANS, SO WE'RE GOING TO TAX YOU MORE.

AND WE HOPE THAT IN THE NEXT FIVE YEARS WE DO IT RIGHT OR WE'RE GOING TO TAX YOU AGAIN.

SO I WOULD LIKE TO SEE US RAISE OUR RATES ACROSS THE BOARD ON THE SERVICES WE OFFER AND STAY AT THE CURRENT ADOPTED RATE.

BUT BUT YOU DO UNDERSTAND RAISING RATES ON WATER AND SEWER HAVE NO IMPACT ON THIS.

IT DOES. NO IT DOESN'T. IT DOES NOT. SO WE HAVE TO BUY A NEW PUMP TRUCK.

IT DOESN'T COME OUT OF OUR BUDGET. IT DEPENDS ON WHICH DEPARTMENT IT IS.

BUT WATER AND SEWER RUN THROUGH THE ENTERPRISE FUNDS THAT THAT IS BUSINESS THAT WE DO THE REST OF THE SERVICES THAT WE'RE DOING.

WE'RE IN A, YOU KNOW, OUR PARKS AND ALL THAT.

THAT IS PART OF WHAT YOUR TAX DOLLARS, YOUR PROPERTY TAX AND SALES TAX DO.

BY, BY LAW, YOUR ENTERPRISE FUND HAS TO BE KEPT SEPARATE.

OKAY. SEPARATE. SO THERE, THERE ARE TIMES WHERE COUNCIL HAS APPROVED THAT WHEN THE ENTERPRISE FUND, WHEN RATES WERE NOT SUFFICING TO COVER EXPENSES, COUNCIL DID APPROVE MONEY TO GO FROM THE GENERAL FUND TO THE ENTERPRISE FUND, WHICH IS ALLOWED BY LAW, BUT IT'S NOT ALLOWED FOR THE ENTERPRISE FUND TO TRANSFER MONEY INTO THE GENERAL FUND.

RIGHT. SO I DON'T WANT TO HAVE TO TRANSFER MONEY TO THE ENTERPRISE FUND.

I WANT TO MAKE SURE THE ENTERPRISE. WE'RE NOT. NOT YET.

IT'S JUST ONE. ONE CLARIFICATION. YOU CAN TRANSFER US.

BUT THAT'S LIMITED. BUT I THINK WHAT YOU'RE SAYING, THOUGH, IS WE DON'T WANT TO RAISE RATES JUST TO TRANSFER.

BUT I THINK WHAT YOU'RE SAYING IS WE CERTAINLY LIKE YOU KNOW, THE LIBRARY HAS TALKED ABOUT RAISING ROOM RATES.

I MEAN THINGS LIKE THAT WITHIN THE GENERAL FUND, WE CAN WE HAVE.

SO A LOT OF THOSE RATE INCREASES, SOME OF THOSE RATE INCREASES ARE BUILT IN TO WHAT WE'RE LOOKING AT TODAY.

AND AGAIN YOU KNOW, WE'LL BE, WE'LL BE MASSAGING THESE NUMBERS AS WE, AS WE WORK OVER THE NEXT WEEK, WEEK AND A HALF TO GET YOU THE FINAL DRAFT. SO AUGUST 18TH.

THANK YOU. COUNCILMAN HILLIARD. COUNCILMAN. DARIO.

WE RAISE RATES TO MEET US THE SAME AS RAISING TAXES.

SOMEBODY STILL HAS TO PAY THE CITIZENS STILL GOING TO HAVE TO PAY FOR THOSE SERVICES.

AND IF THEY'RE GOING TO HAVE TO PAY MORE, IF WE RAISE THE RATE.

AND AS FAR AS WHAT CUTS ARE NECESSARY, ALL OF THEM ARE BECAUSE WE ALREADY ARE SHORT STAFFED RIGHT NOW.

THERE'S A HOUSE ON EVERY STREET THAT COUNCIL APPROVED FOR DEMOLITION TWO YEARS AGO AND SHORT STAFFED.

I KNOW CONTRACTORS DO IT, BUT IT'S STILL SITTING THERE AND IT CAUGHT FIRE.

IT'S STILL SITTING THERE. SO WE ALREADY THE HIRING FREEZE.

WE'RE ALREADY LOSING EMPLOYEES, YOU KNOW, BECAUSE WE'RE NOT COMPETITIVE SALARIES.

AND IF WE'RE ALREADY SHORT STAFFED AND WE DON'T FILL THOSE POSITIONS AS ARE GOING TO BE CALLED MORE AND MORE AND MORE BECAUSE THINGS ARE NOT GOING TO BE GETTING DONE. YOU KNOW, IT'S, IT'S, IT'S OUR RESPONSIBILITY.

IT'S THE CITY'S RESPONSIBILITY TO PROVIDE THESE SERVICES AND FIND A WAY TO PAY FOR THEM.

IT'S THEIR IT'S THEIR RESPONSIBILITY. IT'S OUR RESPONSIBILITY.

IT'S THE WHOLE CITY. IT'S THE CITIZEN'S RESPONSIBILITY TO BE ABLE TO FUND THESE THINGS.

THAT'S THAT'S WHAT WE'RE SUPPOSED TO DO. I SEE YOU LOOKING AT THE CLOCK, MAYOR.

BUT I MADE ME GO LAST, SO THIS IS IMPORTANT TO ME.

NO. IT'S FINE. SO EMPLOYEES LEAVING, AND I AGREE WITH COUNCILMAN TURNER.

IF WE DON'T HAVE A REQUIRED FUND BALANCE, THEN WE NEED TO CHANGE THE ORDINANCE AND LOWER IT.

SO SO WE'LL WE'LL BE IN THE YOU KNOW, HAVE ENOUGH MONEY OR BE WHERE WE WANT TO BE.

BUT AS FAR AS MORE CUTS, LIKE I SAID, I THINK I DON'T THINK WE CAN CUT IT ANYMORE.

YOU GUYS ALREADY SAID WHAT YOU CUT. AND AS FAR AS WHAT SERVICES ARE NEEDED, THE CITIZENS WANT ALL THOSE SERVICES.

[02:20:03]

AND BASICALLY YOU SAID THEY WILL NOTICE IT. SO THAT'S THAT'S NOT GOOD.

AND I MEAN, FOR US SITTING UP HERE, WE'RE GOING TO HEAR ABOUT THAT.

THEY'RE GOING TO THEY'RE GOING TO CALL US. THEY'RE GOING TO CALL US THE TRASH.

DON'T GET PICKED UP OR THEY'RE GOING TO CALL US IF THEY GOT A WATER LEAK, YOU KNOW, INSTEAD OF 311 AND WE ALREADY SHORT STAFFED.

AND WHO, WHO GOING TO DO THAT? WHO'S, WHO'S GOING TO DO THAT WORK? YOU KNOW, I DON'T WELL, I KNOW I'M HOPING WE DON'T COME TO THE POINT WHERE YOU HAVE TO LAY PEOPLE OFF.

I WOULD HATE THAT. BUT I JUST DON'T. IT'S LIKE YOU SAID, WE GOT TO MEET SOMEWHERE IN THE MIDDLE.

LOWER THE RATE THE FUND BALANCE. AND IF WE RAISE THAT RATE TO LIKE COUNCILWOMAN SHERWOOD SAID TO LIKE POINT SIX, 9 OR $0.69, THEN WE COULD ALWAYS LOWER IT AGAIN, YOU KNOW, BUT ONCE YOU, IF YOU LOWER IT, YOU CAN'T RAISE IT. AND EVEN IF WE KEEP IT AT THE SAME AND WE WE CAN'T RAISE IT TILL NEXT BUDGET YEAR.

CORRECT? YOU COULD ALWAYS AMEND THE BUDGET BUT.

CAN'T AMEND THE TAX RATE. CAN'T AMEND THE TAX RATE.

RIGHT. AND YOU COULD CUT EXPENSES. SORRY. I JUST REALLY QUICKLY WANTED TO ADD THAT THIS FUND BALANCE PERCENT DOES DIRECTLY IMPACT OUR BOND RATING.

AND THE NO NEW REVENUE RATE IS 0.683976. YEAH.

GO AHEAD. COUNCIL. MR.. COUNCIL. CITY MANAGER.

I HAVE A QUESTION FOR YOU. DO YOU HAVE A RECOMMENDATION ON THIS? DO YOU HAVE A RECOMMENDATION? I WILL SUBMIT THAT TO Y'ALL.

AUGUST 18TH. OKAY. THIS IS A PROBLEM THAT HAS TO BE FIXED.

AND AS I SAID BEFORE, THAT'S WHY WE'RE UP HERE TO MAKE THESE HARD DECISIONS.

AND EVERYTHING WE DO, NO MATTER HOW WE VOTE UP HERE, SOMEBODY'S GOING TO BE MAD AT US AND UPSET.

AND I SAID BEFORE, I DIDN'T SAY YOU HAD TO HAVE COURAGE TO RAISE TAXES.

I SAID, YOU HAVE TO HAVE COURAGE TO BE ON COUNCIL TO MAKE THESE HARD DECISIONS.

SO YOU KNOW WHICH WAY I'M GOING. THANK YOU. THANK YOU, AMY.

SO HAVE YOU ALL GOTTEN CLEAR ENOUGH INSTRUCTION? THANK YOU. THANK YOU. IT'S CLEAR AS MUD. YEAH.

ALL RIGHT. WITH THAT, WE'RE AT COUNCIL MEMBER COMMENTS.

AND NO, WE'RE NOT. WE GOT SOMETHING ELSE. YEAH.

WE'RE GOOD. YEAH. YEAH. NO, I THINK THAT'S COUNCIL DISCUSSION AND DIRECTION TO STAFF BEFORE WE GOOD.

WE'RE GOOD. ALL RIGHT. DO DOES WOULD ANYBODY LIKE ANY COMMENTS BEFORE WE BREAK FOR LUNCH BEFORE OUR 130 MEETING. IF NOT, THE MEETING IS NOW ADJOURNED. THANK YOU.

* This transcript was compiled from uncorrected Closed Captioning.