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GOOD MORNING.

GOOD

[00:00:01]

MORNING, EVERYONE.

[Special City Council on May 21, 2022.]

AS ALWAYS.

I APPRECIATE YOU GETTING UP AT THE CRACK OF DAWN TO DO YOUR PUBLIC SERVICE FOR THE DAY.

I KNOW THAT SOME OF YOU HAVE SEVERAL COMMITMENTS TODAY, AND SO WE'RE GOING TO TRY TO MAKE THIS AS EFFICIENT AS POSSIBLE.

UM, THE FIRST ITEM ON THE AGENDA IS WE'RE GOING TO BE GOING THROUGH, UH, THE, THE VERY, THE RESULTS OF THE VERY DIFFICULT WORK THAT'S BEEN HAPPENING OVER THE PAST THREE WEEKS TO THE BRAIN AND THE PROJECTIONS FOR OUR BOND PROGRAM UP TO DATE WITH REALITIES OF WHAT'S HAPPENING IN THE CONSTRUCTION MARKET.

AND THEN WHAT'S MAYBE EVEN MORE IMPORTANT HOW, HOW WE'RE GOING TO PAY FOR THAT.

AND SO TO TELL YOU THE TRUTH, I'M A LITTLE DISAPPOINTED.

IT'S ONLY ABOUT A DOZEN SLIDES BECAUSE THE AMOUNT OF WORK BEHIND THIS WAS TREMENDOUS.

AND THOSE FOLKS SITTING BEHIND ME IN PMO AND PUBLIC WORKS, AND LAURA, OVER HERE IN OUR FINANCIAL FOLKS HAVE HAD TO WORK VERY, VERY HARD TO GET TO THIS POINT.

UM, IF YOU, IF YOU LOOK AT THAT BIG SHEET, YOU CAN SEE ALL OF THE PROJECTS LISTED AND TAKE TO GET WHERE WE ARE TODAY TO GOING INTO EACH OF THOSE PROJECTS.

AND THREE, THREE ESTIMATE RE ESTIMATING THE COST OF THOSE.

SO ALISON WE'LL WE'LL GET THOSE TO YOU THEN.

UM, BUT THAT WAS, THAT WAS A VERY ARDUOUS TASK AND, AND CERTAINLY TOOK SOME TIME.

UM, BUT THAT WAS, THAT WAS THE FOUNDATION THEN FOR US TO MOVE FORWARD WITH OUR FINANCIAL MODELING, UH, THE, THE FINANCIAL MODELING ON THE DEBT SERVICE SIDE IS PROBABLY ONE OF THE MOST COMPLEX THINGS WE DO AS FAR AS THE CITY'S FINANCES ARE CONCERNED.

AND SOMETIMES I GET A LOT OF TWO PLUS TWO DOESN'T EQUAL FOUR, AND, AND THERE'S A LOT OF VERY COMPLEX RELATIONSHIPS.

THE COMMERCIAL PAPER PROGRAM MAKES IT SLIGHTLY MORE COMPLEX.

AND SO TO GET TO AN ANSWER MANY TIMES THAT INVOLVES RUNNING SCENARIOS THROUGH THE MODEL, THEY, UM, AFTER, AFTER WE GO THROUGH THE, UM, THE BOND PROGRAM AND WE TALKED ABOUT THOSE ADJUSTMENTS AND HOW WE PROPOSE TO FUND THOSE SECOND ITEM WOULD BE AN EXECUTIVE SESSION.

AND SO OUR GUESTS DID THOSE WHO ARE DIRECTLY INVOLVED WITH GP.

NOW THEY'LL LEAVE US.

AND THEN DARYL IS GOING TO UPDATE US ON SO THINGS THAT ARE HAPPENING IN THE ELECTRIC MARKET THAT HAVE, UH, A GREAT DEAL OF IMPACT ON OUR COMPETITIVENESS AND, UH, AND THE, OUR FINANCIAL PLANS GOING FORWARD.

SO, UH, AGAIN, I THINK THIS, I THINK, UH, OUR TIME HERE CAN BE FAIRLY CONCISE.

UM, AND, BUT IF, IF WE NEED TO MAKE ADJUSTMENTS AND DIVERGE FROM THE RECOMMENDATIONS, WE'RE GOING TO BE GIVING YOU, WE'VE GOT THE PEOPLE HERE TO DO SO WITH, UH, I'LL POINT OUT TO YOU THAT THAT COUNCIL LADY BORIS IS WITH US, UH, VIA LAPTOP.

UH, SHE CAN HEAR US FINE.

SO WHY COULDN'T YOU SAY ABOUT HER? UM, BUT IF SHE WANTS TO COMMENT, SHE'S GOING TO TEXT THE MAYOR BECAUSE IT IS VERY HARD TO HEAR HER IN.

SO, UH, AGAIN, WE ARE RECORDING, SO, SO SPEAK UP.

IT IS ONLY AN AUDIO RECORDING, SO YOU CAN MAKE FACES BY, BUT, UH, WITH THAT, I'M GOING TO TURN IT OVER TO, ALISON ARE PHENOMENAL BUDGET DIRECTOR TO WALK US THROUGH THE 2019 FOND THROW UP THERE, AND I'LL MAKE COMMENTS AS WE GET MORNING MAYOR, CITY COUNCIL.

AND THANK YOU FOR BEING HERE TODAY.

UM, I'LL WALK YOU THROUGH ALL THE HARD WORK.

THE SISTER BRODERICK WAS TELLING YOU THAT, UH, THE CITY STAFF HAS BEEN UP TO THE PAST FEW DAYS AND SOME OF THE ASSUMPTIONS IN OUR CIP MODEL.

SO THE CIP DEBT MODEL IS BASED ON A VARIETY OF ASSUMPTIONS, WHICH MAY OR MAY NOT PROVE TO BE TRUE IN THE FUTURE YEARS.

UM, WHILE YOU'RE TRYING TO MAKE ASSUMPTIONS BASED ON THE BEST INFORMATION WE HAVE AT THIS TIME.

AND IT SEEMS LIKE EVERY TIME WE'RE DOING ONE OF THESE IT'S IN THE MOST UNCERTAIN TIMES THAT WE'VE EVER HAD.

AND SO IT'S IMPORTANT TO KNOW, TO KNOW THAT ASSUMPTIONS DRIVE THE RESULTS.

AND AS, AS THINGS BECOME CLEAR, THE MODEL IS CONTINUALLY UPDATED.

AND SO WILL COUNSEL ME.

BUT THIS IS WHERE WE THINK WE ARE BASED ON THE ASSUMPTIONS THAT VARIOUS INDICATORS ARE TELLING US THE MODEL CONSIDERS THE POLICY FOLLOWING FACTORS TO PROJECT, FUTURE FUNDING CAPACITY.

OUR TAX SPACE IS PROPERTY VALUES GROW EACH SET ON THE DEBT SERVICE TAX RATE GENERATES MORE FUNDING.

[00:05:01]

IF VALUES DECLINE, LESS FUNDING IT'S AVAILABLE, WE HAVE INTEREST RATES.

UM, THIS IS ACTUALLY THE FIRST TIME IN RECENT HISTORY.

WE'VE COME TO COUNCIL TO TALK ABOUT INCREASING INTEREST RATES.

I WENT BACK ABOUT 10 YEARS AND WE'VE ALWAYS TALKED ABOUT DECREASING INTEREST RATES AND THE OPPORTUNITIES THOSE POSTS.

SO PROJECTED INCREASES IN INTEREST RATES WILL INCREASE THE COST TO BORROW AND LIMITS OUR OPPORTUNITIES TO REFINANCE AND CREATE ADDITIONAL CAPACITY.

AND THEN FINALLY COST ESCALATION RISES IN THE PRICE OF GOODS, SERVICES, OR COMMODITIES ASSOCIATED WITH PROJECT DELIVERY, UH, PARTICULARLY AS A RESULT OF THE PANDEMIC AND WHAT WE'RE EXPERIENCING RIGHT NOW, WE ARE PROJECTING A PRELIMINARY 2022 TAX BASE INCREASE OF 7.8%.

UM, THIS IS BASED ON THE FIRST CERTIFIED OR FIRST VALUATION FROM DECAB.

UM, WE WILL RECEIVE TWO MORE ESTIMATES OVER THE COURSE OF THE SUMMER BEFORE RECEIVED THE CERTIFIED IN JULY.

UM, BUT THIS IS WHAT OUR PRELIMINARY ESTIMATE IS.

OUR 20 ARE AVERAGE ON PROPERTY TAX BASED GROWTH IS 4.2%.

SO AS YOU SEE HERE IN OUR MODEL FOR THE, UH, THAT SERVICE CAPACITY, WE ARE CONSERVATIVE ON OUR FUTURE TEXT-BASED GROWTH TO ENSURE THAT THE CITY CAN FUND ITS DEBT SERVICE OBLIGATIONS.

BASED ON THE PROJECTS YOU APPROVE ON AN ANNUAL BASIS.

Y ONE OF THE THINGS I'VE DONE HERE, COUNCIL, WE THINK THE 7.8 IS CONCERNED WITH IT ANTICIPATE A RECORD NUMBER OF APPEALS THIS YEAR.

AND SO, UH, IT GETS WHERE IT GETS VERY, VERY DIFFICULT IN A HIGH APPEAL ENVIRONMENT TO KNOW WHERE WE'RE GOING TO LAND, BUT WE THINK THIS IS STILL A CONSERVATIVE NUMBER.

AND THEN THE PROJECTIONS GO BACK TO MORE OF IT.

NOW, WHAT I'LL, WHAT I WANT TO POINT OUT HERE IS WHAT THIS DOESN'T INCLUDE IS A RECESSION.

AND SO IF, INSTEAD OF GRAVITATING AROUND THE LONG-TERM AVERAGE, WE SEE RECESSION.

WELL, THEN WHAT WE'RE HOPING IS IS THAT IF WE'RE INTO A RECESSION, OUR COST ESCALATION PROJECTS WILL START TO DECLINE.

AND SO HOPEFULLY THERE'LL BE AN OFFSET THERE.

IF IN FACT, WE SEE A MORE MODEST NUMBER OR EVEN A DECLINE IN THE TAX BASIS IN 2022, EVERY 1% INCREASE IS APPROXIMATELY 9 MILLION IN DEBT SERVICE CAPACITY.

SO EVERY PERCENT WE INCREASE IN OUR TAX BASE, VALUATIONS THAT EQUATES TO APPROXIMATELY 9 MILLION IN DEBT SURFACE CAPACITY, INTEREST RATES ARE WORKING AGAINST US RIGHT NOW SINCE FEBRUARY OF 2022 INTEREST RATES FOR 20 YEAR BONDS HAVE INCREASED 80%.

THIS HAS AN IMPACT ON DEBT SERVICE REPAYMENT.

SO FOR RIGHT NOW, IF WE WERE TO ISSUE 1 MILLION IN DEBT, UM, THE COST ISSUE NOW IS 211,000 MORE OVER THE 20 YEAR TERM THAN IT WAS IN FEBRUARY.

THIS YEAR OLD CURVE, UH, IS ASSUMING SOME FUTURE RATE INCREASES AS INDICATED BY THE FEDERAL RESERVE.

SO WE ARE TRYING TO ACCOUNT FOR FUTURE INCREASES IN INTEREST RATES TO THE BEST OF OUR ABILITY ABILITY AND TO THE BEST THAT, THAT, THAT INFORMATION IS TAUGHT WITH OUR, OUR PROBLEM RIGHT NOW, COUNCILS IS WHEN WE WENT TO THE MARKET EARLIER THIS MONTH, YOU'LL REMEMBER THAT WE HAD A REFINANCING THAT WAS ON THE AGENDA, AND THEN WE PULLED IT BECAUSE WE WENT TO MARKET.

WE NO LONGER SAVED ANY MONEY BY REFINING.

AND THE PROBLEM IS, IS THAT NOBODY WANTS TO LOCK 20 YEAR DEBT IN THIS ENVIRONMENT BECAUSE THEY KNOW IF THEY WAIT, THEY INTEREST RATE, THEY CAN GET ON THEIR BONDS WILL BE HIGHER.

AND SO IT'S VERY, VERY DIFFICULT TO ENTICE BUYERS TO THE MARKET RIGHT NOW.

AND, AND THAT'S FUELING SOME OF THE INCREASE THAT WE'RE SEEING COST AND HARM PATIENT ASSUMPTIONS IN THE MODEL LAND WAS SUGGESTED DURING THE 22 CIP, BASED ON THE INFORMATION WE HAD AND THE PROJECTS THAT WE'RE CURRENTLY, UM, GOING OUT FOR ACQUISITION, WE ARE PROJECTING AN INFLATION FACTOR 8% FOR YEAR FOR A PROJECT WITH LAND ACQUISITION STILL WITHIN THE FUTURE PLANS.

THE CITY HAS NOT EXPERIENCED SIGNIFICANT INFLATION WITH DESIGN RIGHT NOW, WE'RE CURRENTLY PROJECTING 3% PER YEAR WITH DESIGN, UH, FOR THE PROJECTS OUT IN THE FUTURE TO ENSURE THERE'S ADEQUATE FUNDING FOR THAT DESIGN.

AND FINALLY, UH, THIS CONSTRUCTION INFLATION OF HER YEAR IS BASED ON WHAT THE CITY IS CURRENTLY EXPERIENCING, WENT OUT

[00:10:01]

TO BID FOR.

AND, UH, BASED ON SOME INFORMATION FROM CONSTRUCTION ANALYTICS, UM, WHICH BASICALLY IS A WEIGHTED INDEX.

IT'S PULLING FROM ALL THE OTHER INDEXES TO TRY TO REALLY SEE THE TRENDS AND TRY TO MAKE SENSE OF WHERE INFLATION IS GOING IN THE MARKET.

WELL, ONE OF THE THINGS THAT'S INTERESTING TO ME IS THAT THE CONSTRUCTION MARKET, ISN'T TALKING ABOUT INFLATION, THEY'RE TALKING ABOUT ADJUSTMENT AND OTHER WAYS WE'VE HAD THIS BIG ADJUSTMENT AND THEN FROM THERE SEEING INFLATION.

AND, AND SO, UH, WE'RE NOT SEEING ANYTHING AT THIS POINT THAT INDICATES THAT THAT ADJUSTS WHEN IT'S GOING TO COME DOWN.

UM, AGAIN, OUR THINKING IS THAT IF THE COUNTRY GOES INTO A RECESSION, THERE WILL BE LESS DEMAND FOR CONSTRUCTION.

AND WE'LL START TO SEE SOME EASEMENT ON PRICES, BUT AS DYLAN CAN ATTEST TO WHAT WE HAVE HAPPENING RIGHT NOW IS WE HAVE A RACE TO BUILD BECAUSE DEVELOPERS KNOW THAT THEIR BORROWING COSTS IS GOING TO BE HIGHER IF THEY WAIT.

AND SO THE LONGER THEY WAIT, THE HIGHER THEIR COST.

AND SO THERE IS A RUSH TO BUILD RIGHT NOW, EVENTUALLY THOUGH, WE'LL, WE'LL SEE THOSE PROJECTS GET DONE AND BE BEHIND US.

AND THEN IT'S GOING TO BE INTERESTING TO WATCH WHAT PRICES DO IN THE CONSTRUCTION IN THE CONSTRUCTION MARKET COULD, AGAIN, FOR MODELING PURPOSES, THESE ARE THE ASSUMPTIONS THAT WE HAVE PLUNKED DOWN, RIGHT? YES, SIR.

NOPE.

NOPE.

NUMBER TWO, TWO UP THERE.

CAN YOU ELABORATE A LITTLE BIT ON THAT? WE'VE NOT EXPERIENCED IT.

SO HOW ARE WE PROJECTING OUT THROUGH 2027, A 3% INFLATION RATE FOR INDESIGN? YES.

AND THAT'S BASED ON THIS, BASED ON WHAT OUR EXPERIENCE SO FAR DURING, DURING THIS LAST COUPLE OF YEARS WHERE WE'VE SEEN ESCALATION, UM, COULD, COULD WE SEE THAT INCREASE? ABSOLUTELY.

BUT BASED ON HISTORY SO FAR DESIGN PRICES HAVE NOT FOLLOWED WHAT'S HAPPENING IN THE CONSTRUCTION.

SO GO, ARE WE LOOKING AT THAT FAST TRACKING, BEING INCLUDED ON DESIGN SIDE TOO, TO HOPEFULLY GET UP FRONT OF ANY INCREASED? WELL, OUR PROBLEM IS FUNDING, RIGHT? SO IF WE FAST TRACK STUFF, WE'VE GOT TO HAVE THE FUNDS.

AND SO THAT'S, THAT'S THE GOVERNOR.

SO TO SPEAK HERE, THAT'S, WHAT'S, THAT'S WHAT SLOWS US DOWN, RIGHT? THIS IS A SUMMARY OF INCREASES OVER OUR FIVE-YEAR PLAN SINCE THE 2022 CIP.

SO IN THE 22 CIP, WE HAD A 600.7 MILLION ASSOCIATED WITH THE 2019 BOND PROGRAM, THE REMAINING 2004 PROJECTS AND OF THE AMERICAN RESCUE PLAN ACT PROJECTS.

WE ARE PROJECTING AN INCREASE OF 126.8 MILLION DUE TO INFLATION ADJUSTMENTS AND, UH, S PRICE ESCALATION AS DISCUSSED ON THE PREVIOUS SLIDE.

AND WE ARE PROJECTING AN ADDITIONAL 15 MILLION FOR THE GARLAND SENIOR ACTIVITY CENTER.

SO THAT BRINGS US TO A NET INCREASE IN THE CAPITAL PROGRAM OF 141.8 MILLION FOR 24%.

SO JUST SINCE LAST FALL, THIS IS WHAT WE'VE EXPERIENCED.

NOW, ONE CAVEAT TO THAT IS, IS THAT LAST FALL THERE, THERE WAS STILL ENOUGH UNCERTAINTY ABOUT WHERE PRICES WERE HEADED, THAT WE DIDN'T GO THROUGH THE EXHAUSTIVE EFFORT THAT WE HAVE FOR THESE NUMBERS.

BUT, UM, THE LAST TIME YOU SAW THE CAPITAL IN PROGRAM CAPITAL PROGRAM, THOSE NUMBERS WERE DEVELOPED IN THE FALL.

AND, AND SO THIS IS, THIS IS AN UPDATE TO THAT.

IN OTHER WORDS, OUR FUNDING DEMANDS HAVE INCREASED $142 MILLION OR 25, 20 4%.

AND OF COURSE, ONE OF THE BIG SURPRISES THAT WE'VE HAD RECENTLY IS THE FACT THAT THE SENIOR CENTER, UM, WHICH WAS A RELATIVELY MINOR PROJECT, UH, JUST SOME UPDATES TO THE SENIOR CENTER DEVELOPED RELATIVELY MINOR PROJECT OF THE BOND PROGRAM.

AND OF COURSE, I'VE TALKED TO EACH OF YOU ABOUT THE PROBLEMS THAT WE'VE ENCOUNTERED WITH THE EXISTING FACILITY.

AND SO MOVING FORWARD AT THAT LOCATION IS NO LONGER AN OPTION.

AND SO IN THE MODEL NOW WE'VE ADDED 15 MILLION, WHICH BRINGS THE TOTAL AMOUNT OF FUNDING AVAILABLE FOR A SENIOR CENTER TO $23 BILLION.

WHAT WE HAVE PLANNED COUNTS WAS DURING THE NEXT WAR OBSESSION IS TO HAVE A PRESENTATION THAT DEALS DIRECTLY WITH THE SENIOR CENTER,

[00:15:01]

WHERE WE TALKED ABOUT WHAT HAS HAPPENED.

WE TALK ABOUT, UH, THE FACT THAT WE'RE MOVING FORWARD WITH A NEW SENIOR CENTER AND THE PROCESS THAT WE'RE GOING TO USE TO, TO, TO MAP OUT AND DEVELOP THAT PROGRAM OPPORTUNITIES FOR INPUT AND LIFE.

BUT THAT'S, THAT'S BEEN ONE OF THE, NOT SO NICE SURPRISES AS WE'VE GONE THROUGH THIS.

IF YOU LOOK AT, IF YOU LOOK AT THE BOG PROGRAM, AS IT WAS PASSED AND WHERE WE ARE NOW, WE'VE SEEN ABOUT $180 MILLION INCREASE, OR ABOUT 35% INCREASE AND THE ORIGINAL BOND PROGRAM DUE TO WHAT'S HAPPENING IN THE CONSTRUCTION MARKET.

SO OF THE 141.8 MILLION, 103.6 MILLION OF THAT IS ASSOCIATED WITH COST ESCALATION, 10.6 MILLION IS ASSOCIATED WITH WHAT WE WOULD TERM AS CODE CORRECTION.

I BELIEVE YOU ALL ARE FAMILIAR WITH THOSE TERMS FROM OUR EXTENSIVE DISCUSSIONS IN THE 22 CIP, AND THEN 26.7 MILLION ASSOCIATED WITH SCOPE ADDITION, WE ARE PROPOSING TO FUND 141.8 MILLION WITH 67.4 MILLION IN NEW DEBT CAPACITY FROM THE 2022 PROTECTED TAX SPACE INCREASE OF 7.8% AND A MILLION OF ONE-TIME FUNDS THAT GETS US TO A PROJECT SHORTFALL OF 73.4 MILLION.

OKAY.

SO IN LARGE PART, DUE TO THE FACT THAT WE HAVE AN ALMOST 8% INCREASE IN THE TAX BASE ESTIMATED FOR THIS YEAR, WE'RE PICKING UP ABOUT $67 MILLION IN DEBT CAPACITY.

AND SO WE'RE ABLE TO USE THAT DEBT CAPACITY TO OFFSET THAT 142.

UH, IT LOOKS LIKE WE'RE GOING TO END THIS FISCAL YEAR WITH SOME ONE-TIME MONEY.

WE'VE CARVED OUT A MILLION OF THAT TO THROW TOWARDS THESE PROJECTS, WHICH GETS US DOWN TO A NET PROBLEM OF $73 MILLION.

THE FOLLOWING IS THEIR VALUE EVALUATION CRITERIA USED BY IDENTIFY PROJECTS FOR POTENTIAL DELAY.

THE PHASE OF THE PROJECT HAS THIS PROJECT STARTED, HOW FAR ALONG IN THE PROCESS, IS IT THE IMPACT OF PAUSING A PROJECT? WHAT'S THE STATUS OF OUR CURRENT CONTRACTS AND COMMITMENTS TO THE STATUS OF THE PROJECT RELATIVE TO PHASE, AND THEN THE LIKELIHOOD OF REWORK.

AND THEN FINALLY, IS THERE SIGNIFICANT CHALLENGE OR CONSTRAINT THE LANE OR A PDA THE PROJECT PROJECT, REGARDLESS OF THE SITUATION.

AND THIS IS WHERE SO MUCH OF THE WORK HAS TO HAPPEN.

NOT EVERY PROJECT CAN BE STOPPED BECAUSE THIS, THIS TRAIN'S BEEN ROLLING AT A VERY, VERY QUICK CLIP.

AND YOU, YOU AS A COUNCIL HAVE MADE SURE OF THAT.

AND THAT'S BEEN, THAT HAS BEEN YOUR PRIORITY.

WE CAN'T PUT THE BRAKES ON EVERY PROJECT BECAUSE OF WHERE THEY ARE IN THE PROCESS.

AND SO FIGURING OUT THOSE PROJECTS THAT COULD BE STOPPED, FIGURING OUT PROJECTS WHERE WE'RE AT A BREAK AND WISH WE COULD, UH, WE COULD TAKE A PAUSE, UH, BUT WHERE WE REALLY ENDED UP COUNCIL WAS ON THIS LAST BULLET POINT.

WE HAVE A NUMBER OF PROJECTS THAT WE CAN'T MOVE FORWARD WITH, EVEN IF WE HAVE THE MONEY.

AND, AND A LOT OF THOSE ARE DRAINAGE PROJECTS.

FOR, FOR EXAMPLE, WE HAD A DRAINAGE PROJECT AND THE BOND PROGRAM, BUT WHEN THE DESIGN AND THE ENGINEERING STARTS, IT BECOMES VERY OBVIOUS THAT FIXING THIS PROBLEM IS GOING TO HAVE A SIGNIFICANT DOWNSTREAM IMPACT.

AND SO THE PROCESS OF, OF ANALYZING AND FIGURING OUT THE DEGREE OF THAT INPUT, AND THEN THE COST ASSOCIATED WITH IT IS A FAIRLY MAMMOTH TASK.

AND SO I CAN, THERE WERE, THERE WERE A NUMBER OF PROJECTS THAT POPPED OUT AS EVEN IF WE HAD FUNDING AVAILABLE.

THERE ARE GOOD, SOLID REASONS FOR DELAY.

NOW, HERE IS WHERE WE ENDED UP.

SO THE FIRST COLUMN YOU SEE ARE THE PROJECTS THAT WE ARE PROPOSING TO PUSH OUT.

AND WHEN WE SAY PUSH OUT, WHAT WE'RE SAYING IS, IS THAT THAT WOULD BE PAST 20, 28 AND WHERE THEY FALL IN THE FUNDING SCENARIO.

AFTER 28 WOULD DEPEND

[00:20:01]

ON WHAT OUR TAX BASE DOES, WHAT OUR CONSTRUCTION NUMBER DOES, ET CETERA, ET CETERA.

BUT BASICALLY EVERY YEAR WHEN YOU'RE DOING THE CIP, YOU'RE RESHUFFLING PROJECTS BASED ON WHERE WE ARE IN COST ESTIMATES.

AND SO WE HAVE, WE HAVE A COUPLE OF PROJECTS THAT, THAT, AGAIN, FOR, FOR REASONS NOT HAVING TO DO WITH FUNDING NEED TO BE PUSHED OFF LION'S ROAD IS, IS A PARTICULARLY COMPLICATED PROJECT.

UH, PART OF IT IS BECAUSE THE ROAD IS NOT WITHIN THE RUNAWAYS.

SO THAT, THAT TELLS YOU RIGHT AWAY THAT THERE'S A WHOLE LOT OF LAND ACQUISITION AND IN A THAT'S AT WORK.

THE OTHER, THE OTHER THING IS, IS, IS THAT THERE IS A LARGE G P AND L UTILITY RELOCATION COMPONENT TO THIS PROJECT BECAUSE YOU'RE GOING TO BE HEARING.

AND OUR NEXT ITEM NOW IS PROBABLY NOT THE BEST TIME FOR P GP.

NOW, DOCTOR TAKE THAT.

THE OTHER THING IS, IS, IS THAT THIS PROJECT GREATLY SERVES THE CITY OF SUNNYVILLE, MAYBE EVEN MORE THAN THE CITIZENS OF GARLAND.

AND SO WE THINK THAT THIS IS A GOOD CANDIDATE FOR PUSHING OFF.

IF THIS TOP LAVON LANDSCAPING, WE HAVE BEEN WORKING ON THIS ONE FOR QUITE SOME TIME WITH GREAT HELPERS.

AND I KNOW THIS HAS BEEN A PET PROJECT OF, OF ROBERT JOHN AND HIS ORIGINAL IDEA.

WE GOT, WE GOT APPROVAL FROM THE RAILROAD FOR OUR DESIGN.

AND AS YOU ALL KNOW, WORKING WITH THE RAILROAD IS ALWAYS A VERY SLOW TIME CONSUMING PROCESS.

THEY CAME BACK WITH INITIAL APPROVAL, THERE'S BEEN A CHANGE IN PERSONNEL, AND NOW THEY HAVE DENIED SOME.

WE ARE BACK TO SQUARE ONE.

SO WE'RE NOT IN A POSITION TO MOVE FORWARD WITH THAT PROJECT.

AGAIN, EVEN IF WE HAVE THE FUNDING, UH, LEON ROAD, THIS IS, UH, ONE OF THE ROADS THAT SERVICES, THE OLD HOLLYWOOD THEATER, DARK TRANSIT AREA.

THIS ONE, UM, AS WE VISITED WITH YOU IN EXECUTIVE SESSION, WE HAVE A LOT OF DEVELOPMENT POTENTIAL.

THERE.

WE HAVE SOME EXCITED, EXCITING DEALS THAT ARE IN THE WORKS.

UH, WE THINK IT MAKES SENSE TO PUSH THIS OUT UNTIL WE KNOW MORE WHAT THE NEEDS ARE GOING TO BE TO SURFACE THAT AREA.

UM, THEY, THEY, OTHER CAVEAT THAT, THAT I WANT TO PUNT HERE IS, IS THAT CERTAINLY IF A DEVELOPMENT MATERIALIZES, THIS PROJECT WILL GET PRIORITIZED AND WE'LL DEAL WITH WHERE WE ARE AT THAT PARTICULAR TIME.

BUT RIGHT NOW WE THINK THAT THIS, THIS PROJECT IS A CANDIDATE TO PUSH OFF, UM, THE LIKE WOOD, UH, DRAINAGE IMPROVEMENTS.

MOST, MOST OF A, UH, ISSUES AND COMPLAINTS WERE, WERE DEALT WITH IN THE WORK THAT WAS DONE 15 YEARS AGO.

UH, THERE'S ALSO A RELATIVELY SMALL NUMBER OF HOMES IMPACTED AND ISSUES RELATED TO THAT.

AND SO W WE THINK GIVEN THE DOLLAR SIZE THAT THIS ONE IS PROBABLY A LOWER PRIORITY THAN SOME OF THE OTHER PROJECTS, GARLAND WEST IS PROBABLY BEEN, I DON'T KNOW HOW THIS LITTLE DRAINAGE PROJECT, ALL OF A SUDDEN GREW TO $20 MILLION, BUT, BUT I, I THINK BEFORE, BEFORE WE UNDERTAKE THAT THERE PROBABLY NEEDS TO BE A SERIOUS ANALYSIS AND DISCUSSION ABOUT IS THIS PROJECT WORTH DOING, AND THIS IS IN THE INDUSTRIAL AREA.

UH, AND, AND SO WE, WE FEEL LIKE THAT THIS IS A LOWER PRIORITY PROJECT.

AND ONE THAT REALLY DESERVES TO BE RE-EXAMINED FROM, FROM THE BOTTOM UP WESTERN HEIGHTS IS, UH, WHAT WILL YOU HAVE DONE HERE IS, IS THAT WE HAVE PULLED HALF A MILLION DOLLARS OUT OF THAT PROJECT, JUST STUDY THE DOWNSTREAM IMPACTS.

AND, UH, MY FEAR COUNCIL IS, IS THAT WESTERN HEIGHTS IS GOING TO COME BACK WITH A NUMBER OF THAT LOOKS A WHOLE LOT, LIKE OUR LONG WEST WHEN WE GET DONE WITH IT, BUT THAT'S GOING TO TAKE, THAT'S GOING TO TAKE SOME STUDY AND SOME TIME.

AND SO WE FEEL LIKE THAT IS A CANDIDATE FOR JULY.

UM, YEAH, THERE ARE A COUPLE OF THINGS THAT WERE FUNDED, UM, WITH FULLY OR PARTIALLY WITH ARPA FUNDS THAT WE

[00:25:01]

ARE, ARE ALSO PROJECTING NOT TO DO.

AND I WANT TO MAKE ONE, TO MAKE A CAREFUL DISTINCTION HERE, EVERYTHING WE'VE TALKED ABOUT UP TO THIS POINT, WE'RE NOT TALKING ABOUT CUTTING THEM.

WE'RE TALKING ABOUT PUSHING THEM OUT IN THE PROGRAM.

THEY, UH, THESE ITEMS WE'RE TALKING ABOUT CUTTING THE BROADBAND SERVICES.

THERE IS NOW A FEDERAL PROGRAM AND GIS D HAS A SIMILAR PROGRAM.

AND SO, UM, WE THINK THAT THAT IS A GOOD CANDIDATE FOR A CUT THE HEALTH CLINIC, UH, BASED ON THE COMMENTS I'VE GOTTEN FROM COUNCIL, THAT WAS A NICE TO HAVE, AND NOT NECESSARILY A NECESSITY AND CERTAINLY SOMETHING TO BE INCLUDED IN THE NEXT BOND PROGRAM.

UM, AUDUBON PARK SERVICE ROAD, THERE IS A SERVICE ROAD THAT IS PRIMARILY USED FOR MAINTENANCE OF THE CIRCUITS WHEN FACILITY, THIS IS NOT A ROAD THAT GETS A LOT OF PUBLIC TRAFFIC.

THERE WAS ABOUT THREE AND A HALF MILLION DOLLARS TO, UH, TO MAKE A CONCRETE ROAD THERE.

WE THINK THAT WE CAN, WE CAN MAKE THAT SUITABLE FOR MAINTAINING, UH, SURFING, SWIM WITH IN-HOUSE SERVICES.

IN OTHER WORDS, USING OUR STREET CRE STREET CREWS, WE CAN MAKE, WE CAN MAKE WHAT'S NEEDED FOR AUDUBON PARK THERE.

AND SO WE'RE TAKING THAT THREE AND A HALF HOURS.

AND SO THOSE PROJECTS WOULD BE ELIMINATED FROM THE CAPITAL PROGRAM.

THEY, YOU REMEMBER, WE TALKED ABOUT A MILLION DOLLARS IN ONE-TIME FUNDING.

AND SO WE HAVE, WE HAVE APPLIED THAT ONE-TIME FUNDING TO THE HOLFORD SPORTS FIELD LIGHTING, THE RIDGE VIEW, MASTER PLAN, THE ABC SYSTEM FOR THE EMERGENCY OPERATION SYSTEM AND ON THE STREET FIGHTER FACILITIES.

SO THAT'S THE DAMAGE.

YEAH.

I JUST WANTED TO POINT OUT A LITTLE CLARIFICATION THAT THOSE FIGURES ARE THOUSANDS.

YES.

SO LION'S ROAD IS 16 MILLION, 16 AND A HALF MINUTE WHILE I WISH THAT WAS .

I JUST WANT TO MAKE SURE EVERYBODY KNOWS THAT TO RECAP OUR RESOURCES.

SO OUR TOTAL CHANGE WAS 141.8 MILLION.

WE WERE ABLE TO FUND 67.4 MILLION WITH NEW DEBT CAPACITY AS A RESULT OF OUR 2022 PROJECTED TAX SPACE.

SO JUST STILL PRELIMINARY 1,000,001 TIME OPERATING FUNDS TO GET THAT BRINGS US DOWN TO THAT PROJECT SHORT FALL OF 73.4 MILLION, WHICH WE ARE PROPOSING THE COUNCIL WILL REVIEW AND DISCUSS PUSHING OUT 60.8 MILLION PROJECTS, REDUCING AND ELIMINATING SEVERAL OF OUR ARPA-E PROJECTS, WHICH RESULTS IN 9.1 MILLION AND THEN MOVING ONE PROJECT IN HOUSE FOR REDUCTION OF 3.5 MILLION.

SO ALLISON, SO ON THE ARPA FUNDS.

UM, SO WE'RE STILL UTILIZING THIS STILL UTILIZING OUR YES, SIR.

WE'RE JUST PROPOSING TO REALLOCATE THOSE, RIGHT.

RIGHT, RIGHT.

FOLLOWING THE CITY.

COUNCIL'S DELIBERATION ON THESE PROPOSED CHANGES.

STAFF WILL REVIEW ALL CAPITAL PROJECTS TO OPTIMIZE OUR FUNDING SOURCES, CEO, GEO ARE, ARE BOTH FUNDING AND IMPACT FEES.

UM, WE WANT TO MAKE SURE WE'RE UTILIZING THE APPROPRIATE SOURCE FOR EACH PROJECT, AS WELL AS, SINCE WE'VE RECEIVED FURTHER GUIDELINES ON OUR BOOK.

UM, WE SEE SOME OPPORTUNITIES TO MAYBE APPLY THOSE TO A HANDFUL OF PROJECTS.

UH, THAT MAKES SENSE BASED ON THE GUIDELINES AND UTILIZE GEO OR CEO DEBT, UM, TO MAKE UP EVERYTHING ELSE.

UM, I DO WANT TO NOTE THAT WITH THIS PROPOSAL, WE DO NOT EXCEED OUR GOALS ABOUT STANDING DEBT GREATER THAN 3.5% OF OUR TAX SPACE.

AND WE'RE WELL BELOW THE 5% OF OUR TAX BASE AND CITY COUNCIL POLICY.

NEXT, WE PAIR A CIP BUDGET AMENDMENT FOR FORMAL CONSIDERATION TO AMEND THE 22 CAPITAL PROGRAM FOR THESE ADDITIONAL, FOR ADDITIONAL FUNDING FOR PROJECTS UNDERWAY IN THE 22 YEAR.

UM, THE REST OF THE CHANGES WILL BE INCORPORATED AS PART OF THE 23 PROPOSED CIP

[00:30:02]

DEPARTMENTS DO HAVE PROJECTS THAT ARE CURRENTLY IN THE BID PROCESS OR HAVE JUST COMPLETED THE BID PROCESS.

SO IT IS LIKELY THAT YOU MAY SEE SOME BITS COME FORWARD ALONGSIDE THE BUDGET AMENDMENT OR IN ADVANCE OF THAT BUDGET AMENDMENT BASED ON THE DECISIONS MADE TODAY, IF THEY FEEL THAT COUNCIL HAS APPROVED ADDITIONAL FUNDING AND WE'RE MOVING, MOVING FORWARD WITH THIS PLAN, UM, WITH THIS INCREASE IN THE TOTAL SIZE OF THE PROGRAM, YOU KNOW, BACK IN 2019, WE HAD TALKED ABOUT 500 MILLION BEING KIND OF THE TRIP WIRES THAT WOULD IMPACT OUR BOND RATINGS.

I KNOW THAT CHANGES AS WE GO YEAR TO YEAR.

UM, ARE WE EXPECTING, YOU KNOW, GOING FROM THAT TO NOW CLOSE TO 600 OR WHATEVER THE TOTAL NUMBER IS, ARE WE EXPECTING ANY KIND OF POTENTIAL IMPACT TO OUR BOND? I'LL TELL YOU.

THAT'S A GOOD QUESTION.

AND WHAT, UH, WHAT IS WORKING WELL FOR US TAX PAY CONTINUALLY, UH, INCREASED AT A RATE FAR, MUCH, MUCH GREATER THAN WHAT WE ANTICIPATE.

UH, THEY, UH, IT WAS VERY IMPORTANT TO US TO STAY BELOW THAT THREE AND A HALF PERCENT MARK.

UH, AGAIN, YOUR POLICY IS FIVE BUT THREE AND A HALF PERCENT IS KIND OF THE GOLD STANDARD.

AND SO IF WE, IF WE SEE A DOWNGRADE FROM, UH, FRONT OF THE BOND RATING AGENCIES, IT WILL BE FOR ONE OR TWO REASONS.

ONE, UH, THE OVERALL ECONOMY IS SLUMPING AND WE'RE SEEING OUR REVENUES DECLINE.

THE OTHER IS WHAT WE CALL OVERLAPPING DEBT.

AND IF YOU REMEMBER, WE'VE TALKED ABOUT THE FACT THAT THE BOND RATING AGENCIES DON'T JUST LOOK AT THE AMOUNT OF DEBT THE CITY IS CARRYING, BUT THEY ALSO LOOK AT THE AMOUNT OF DEBT THE COUNTY AND THE SCHOOL DISTRICT IS CARRYING AND WHAT KIND OF BURDEN THAT PUTS ON THE TAX SPACE, BECAUSE WE WE'RE ALL GETTING OUR MONEY FROM THE SAME HOUSEHOLDS IN.

SO, UM, IF WE SEE A DOWNGRADE, IT WILL BE THINGS THAT ARE BEYOND OUR CONTROL.

CAN WE EXPECT ANY BENEFIT ASSOCIATED WITH THE PASSAGE OF THE TWO CONSTITUTIONAL AMENDMENTS IN THAT REGARD WITH RESPECT TO THE TOTAL? ARE WE GOING TO GET MAYBE A LITTLE BIT OF BREATHING ROOM WITH THE TWO CONSTITUTIONAL AMENDMENTS THAT REDUCE THE PATIENT WITH PEOPLE ARE PAYING THE SCHOOL DISTRICTS, EVERY MODEL THAT AT ALL, OR NO, THAT REALLY DOESN'T, THAT DOESN'T FIT WELL INTO OUR MODELS, SO TO SPEAK.

SO IT'S A GOOD QUESTION.

I'M JUST NOT SURE.

I'M NOT SURE HOW THE BOND RATING AGENCIES ARE GOING TO LOOK AT THAT.

OKAY.

OUR, OUR MODEL ASSUMES OUR YIELD CURVE BASED ON OUR CURRENT RATES.

SO WE'RE ASSUMING THAT AS WE EXTEND OUT, WE WILL MAINTAIN OUR CURRENT RATING AND THE INTEREST RATES YOU RECEIVED BASED ON YOUR RATING.

OKAY.

UM, WHAT, UM, YOU SAID THREE AND A HALF PERCENT GOLD STANDARD.

WELL, WHAT PERCENT WILL THIS BRING US TO THREE AND A HALF? SO WE RIGHT AT THAT.

YES, WE'RE RIGHT AT THAT.

THIS IS WHERE, OKAY.

UM, ANOTHER QUESTION THAT POPPED OUT OF MY HEAD, UM, THIS IS GREAT WORK BY STAFF.

I MEAN, HONESTLY, UH, I'VE BEEN KIND OF DREADING THIS MEETING, NOT ONLY BECAUSE I WAS HOPING TO BE OFF THE COUNCIL BY NETFLIX.

UM, UH, BUT I MEAN, SERIOUSLY, WE'VE BEEN TALKING ABOUT THIS MEETING NOW FOR QUITE SOME TIME.

AND THE THOUGHT WAS THAT IT WAS GOING TO, THAT IT HAD THE POTENTIAL TO DEVOLVE INTO SOME KIND OF KNIGHT FIGHT OVER, YOU KNOW, OVER WHAT PROJECTS GET CUT OR HOW WE HANDLE THE BOND PROGRAM.

AND I'VE BEEN VERY, UM, PERSONALLY, I'VE BEEN VERY CONCERNED THAT I DID NOT WANT TO REPEAT WHAT HAPPENED TO THE 2004 BOND PROGRAM.

I I'M VERY CONCERNED IN, IN RECOGNIZING THAT THIS IS PROBLEM WITH THIS, ALTHOUGH THIS WILL BE MY LAST MEETING ON THE 2019 PROGRAM, IT WILL LIKELY NOT BE YOURS LAST MEETING FUNDING PROGRAM IN BECAUSE THERE'S, WE'RE RIGHT AT THE EDGE ON A LOT OF THESE THINGS AND ASSUMPTIONS BEING WHAT THEY ARE.

THERE'S PROBABLY SOME ASSUMPTION THAT WE'RE GOING TO GET WRONG, WHICH IS, WHICH IS OKAY.

UM, AND SO YOU'LL BE BACK HERE AGAIN, EITHER BECAUSE THERE'S MORE CAPACITY YOU REALIZE.

UM, SO MY, MY ENCOURAGEMENT WOULD BE TO BE VERY CAREFUL NOT TO REPEAT THE SINS OF THE, OF WHAT HAPPENED WITH THE TWO PROGRAMS

[00:35:01]

WE HAVE DONE SO WELL TO SUPERCHARGE THIS PROGRAM AND PULL THESE PROJECTS OUT OF THE GROUND AND BE BOLD.

AND I REALLY ENCOURAGE, UH, EVERYONE ON COUNCIL AND ON STAFF TO CONTINUE TO BE BOLD AND BE CREATIVE IN HOW WE PULL OUT THE PRODUCTS BECAUSE, UH, YOU KNOW, BY RAISING THE TAX RATE ON THAT, YOU KNOW, NO FUTURE COUNCILS HAVE TO, MAY HAVE HAD TO MAKE THE HARD DECISION ABOUT WHETHER TO RAISE THE TAX RATE, BECAUSE WE DID IT THAT FIRST YEAR, YET KEEP IN MIND THAT, THAT THE VOTERS THAT WE WENT TO THEM AND SAID EIGHT AND A HALF SENTENCE, AND WE CAME IN UNDER THAT.

AND SO, YOU KNOW, JUST, JUST KEEP THAT IN MIND IF PEOPLE REALLY WANT THESE PROJECTS, EVEN THE PROJECTS THAT ARE NOT AS SEXY, BUT ARE VERY IMPORTANT, THE DRAINAGE AS OUR ENGINEERS.

SO THE DRAINAGE PROJECTS, THE ROAD IMPROVEMENT PROJECTS, ALL OF THAT STUFF IS REALLY IMPORTANT TO THE FUTURE OF THE CITY.

SO PLEASE, PLEASE CONTINUE TO BE BOLD ON THAT.

BUT THAT SAID, I JUST, I WANT TO THANK ALL OF YOU GUYS.

I MEAN, I, I DID NOT EXPECT THAT WE'D BE ABLE TO COME HERE TODAY AND SLACK WE'VE HAD, WE'VE HAD SOME DISCUSSIONS WHERE I'VE BEEN REAL CONCERNED ABOUT, ABOUT THE PROGRAM, ABOUT THE DECISIONS WE'VE HAD, WE WOULD HAVE TO MAKE, BUT YOU GUYS HAVE DONE GREAT WORK.

THIS IS, THERE'S NOT, THERE'S NOT A PROJECT ON HERE THAT YOU'VE SAID THAT PUSHING OUT OR ELIMINATING OR CASH FUNDING THAT I HAVE ANY KIND OF DISAGREEMENT WITH.

I THINK THESE, ALL THOSE, UH, I THINK THESE ALL LOOK GREAT.

AND, UM, I THINK WE SHOULD JUST MOVE ON AND REALLY A HEARTY THANKS TO STAFF FOR THIS, YOU KNOW, FOR CATCHING ALL OF THIS AND MAKING IT ALL.

GREAT.

THANK YOU.

AND RICH ALLUDED TO WHAT MY QUESTION WAS.

SO, UM, AND, AND PARDON MY IGNORANCE HERE, BUT YEAH, WHEN THE 2019 BOND WAS APPROVED BY THE CITIZENS, IT WAS APPROVED AT, WE ARE WHAT WAS APPROVED THAT WE, WELL, LET ME, LET ME JUST THE TECHNICAL APPEASEMENT THERE.

WE TOLD IN THE MATERIALS, UM, WE HAD STAFF LOOK AT IT AND WE SAID, IF WE WANTED TO FUND THIS PROGRAM AND NOT HAVE IN THE PAST ONE PROGRAMS HAVE BEEN FUNDED WITH CERTAIN ASSUMPTIONS THAT IN YEAR TWO, YOU'LL RAISE AT 1 CENT IN YEAR THREE, YOU'LL RAISE IT 4 CENTS.

BUT AFTER THE 2004 PROGRAM, THE PLANE WAS AN 11% INCREASE.

IT GOT TO FIVE AND A HALF CENTS, AND COUNCIL LOST ITS NERVE TO EVER RAISE TAXES AGAIN IN TAXES.

THE RATE STAYED STABLE FOR A VERY LONG TIME, WHICH THEN CAUSED THAT'S HOW THEY HAD TO STRETCH OUT IN THE TOOTH.

SO WHEN I GOT HERE IN 2016, THE 2004 BOND PROGRAM WAS LIKE 47%, WHICH WAS RIDICULOUS.

UM, SO WHAT WE SAID IS, IS WE ASKED STAFF, WE SAID, IF WE WANTED TO COMPLETE THIS ENTIRE PROGRAM IN, I THINK WE SAID SEVEN YEARS, IF YOU WANTED TO PUT THE ENTIRE PROGRAM TO SEVEN YEARS AND FINISH ALL THE 2004 PROJECTS, WE WANTED TO SUPERCHARGE THAT AND NOT HAVE TO RAISE TAXES AT ALL, WHAT WOULD WE HAVE TO DO? AND SO IT WAS THIS, YOU KNOW, IN OUR MATERIALS, WE SAID, WE CAME UP WITH THE NUMBER THAT WAS BASED ON WHERE WE WERE, THEN IT WAS EIGHT AND A HALF SEX.

SO WE PUT THAT INTO MATERIALS.

IF YOU APPROVE THIS, IF YOU PROVE ALL OF THIS, BECAUSE THE IDEA WAS THAT WE WOULD HAVE TO COME BACK LATER WITH THE ACTUAL APPROVAL OF THAT, DOESN'T THINK IT WAS APPROVED IN MAY, 2019, THE BOND, BUT THE ACTUAL APPROVAL, THE TAX RATES DON'T COME TILL SEPTEMBER OR SO.

AND SO WE SAID, WELL, W WE'LL LOOK AT HOW MUCH IT GETS APPROVED, BECAUSE IF ONLY SAY LET'S SAY SOME OF THE PROPOSITIONS AND FAILED, AND WE WOULD NEED THE EIGHT AND A HALF CENTS, SO ON AND SO FORTH.

SO, BUT BY PUTTING THAT OUT THERE AND SETTING THAT EXPECTATION, WE'RE GOING TO RAISE THE TAX RATE TO FOLD THESE PROJECTS OUT OF THE GROUND.

SO THAT COULD APPROVE.

THEN WE MET, I THINK THAT MONTH, OR MAYBE IN JUNE, I THINK IT WAS IN MAY TO JUST SORT OUT WHAT WERE THE FIRST PROJECTS WE WERE GOING TO DO.

AND WE IMMEDIATELY START, I THINK THE ANIMAL SHELTER WAS ANIMAL SHELTER AND FLEET PROPERTY ROOM.

WE'RE LIKE THEY HAVE THESE, THESE ARE LIKE ONE AND TWO.

WE'RE DESIGNING THESE, WE'RE PULLING THESE OUT OF THE GROUND WITH THE SHORT LIST.

WE AMENDED THAT YEAR CIP TO DO THOSE, TO START ON THOSE.

CAUSE WE COULD START ON THOSE RIGHT AWAY.

AND THEN, UM, AS IT TURNS OUT WITH, WITH MORE BUDGET MAGIC THAT I WILL NEVER FULLY UNDERSTAND, UM, BECAUSE OF THE INCREASE, THE UNEXPECTED INCREASE IN PROPERTY VALUES IN 2019, WHEN THOSE CAME IN, WE ENDED UP CAPACITY.

WE DIDN'T NEED ANY ASSETS.

WE NEEDED SIX OR SIX AND A HALF.

WE NEEDED SIX AND A HALF CENTS AND SAID EIGHT AND A HALF.

SO WE SAID, OKAY, SO WE'RE GOING TO RAISE THE DEBT SERVICE RATE SIX AND A HALF CENTS.

AND WE ALL BENEFITED BY THE TAX COMPRESSION THAT WAS APPLIED TO THE SCHOOL DISTRICT, WHICH WAS ABOUT SIX AND A HALF CENTS.

AND, UM, BUT WE GOT THAT.

WE

[00:40:01]

GOT THAT.

SO WE APPROVED THAT.

I DON'T THINK WE'VE HAD A SINGLE PERSON COME DOWN AND TALK ABOUT THE INCREASE IN THE DEBT, NOT A SINGLE COMPLAINT AFTER YEARS AND YEARS OF PEOPLE SAYING, IF YOU TOUCH THE TAX RATE, PEOPLE ARE GOING TO BE DOWN HERE WITH THE PITCHFORKS AND TORCHES.

NOBODY CAME DOWN, WE APPROVED THE SIX AND A HALF CENTS AND SAID EIGHT AND A HALF AND WE'RE OFF TO THE RACES.

SO THAT'S THE STORY.

SO WE'VE GOT, SO WE'VE GOT 2%.

YEAH, ACTUALLY GOT A COUPLE OF DIFFERENT ONE, ONE OPINION.

AND ONE QUESTION.

OKAY.

SO THE QUESTION THEN IS I WAS THINKING IT WAS EIGHT.

I WAS EIGHT.

I WAS EIGHT SOMETHING AND WE ACTUALLY USE 6, 7, 8 AND A HALF TO, DOWN TO SIX AND A HALF.

OKAY.

SO, UM, WHAT WOULD THE PROJECTIONS CHANGE IF WE DID UTILIZE THAT EXTRA 2%, IT WAS PRESENTED.

WHEN DID YOU CALCULATE THE, YOU NEEDED TWO AND A HALF CENT TAX RATE INCREASED TO FUND THE 73.4 MILLION PROJECT SHORTFALL.

SO THERE WILL BE LESS OF A SHORTFALL IF WE USE THAT 2 CENTS, THAT TWO AND A HALF CENTS IS THE AMOUNT.

AND IF YOU WANT TO MAINTAIN AND KEEP THE 73.4 MILLION WITHIN THE FIVE-YEAR PLAN.

SO EXECUTED FROM 27 OUT TO 20, 23 TO OUT TO 20 27, 20, 28.

OKAY.

BUT THE REALITY IS WE COULDN'T DELIVER ON, YOU COULD FUND IT, BUT WE COULD NEVER, WE COULD NEVER GET AN ON THE GROUND.

AND WHAT IS THAT? THAT'S BECAUSE OF ALL OF THE ISSUES WE'VE TALKED ABOUT EACH PROJECT, THERE ARE THINGS OTHER THAN FINANCE OR SLOGAN, THOSE PROJECTS WILL.

UM, OKAY.

SO I GUESS, OKAY.

AND THEN I GUESS, ARE WE TO THE POINT NOW WHERE WE'RE GOING TO DISCUSS, WE'RE READY TO DISCUSS THE PROJECTS, WHETHER THEY BE ON THIS LIST OR ON THIS LIST, HOW WOULD YOU LIKE TO GO FORWARD? WHAT, WHAT IS YOUR, OH, WELL, I, WELL, FIRST OF ALL, UH, YOU KNOW, WE GOING TO DISCUSS THE SPECIFICS THAT YOU, ARE, WE TALKING ABOUT TRADING THINGS BACK AND FORTH.

YEAH, WELL SPECIFICALLY, YEAH.

AND SPECIFICALLY, FOR EXAMPLE, THERE, THE HOLSTERED ROAD SEGMENT 8 1 4 3 1 4, YOU KNOW, EVER SINCE I FIRST SAW THIS IN 2019, I THOUGHT IT WAS UNNECESSARY, BUT I COULDN'T VOTE AGAINST THAT ONE TINY LITTLE THING.

SO I'D LIKE TO, I'D LIKE TO ELIMINATE, WELL, LET ME, LET ME ADDRESS THAT THEY, THAT WAS HIGH ON OUR LIST FOR DELAYS.

THE PROBLEM IS, IS THAT IN TIME FOR THIS RETREAT, WE COULD GET APPROVAL FROM THE COUNTY TO MOVE THOSE FUNDS TO BEING UNSAFE.

AND THE REASON IS HOLFORD AE SERVES AS A MAJOR CONNECTOR BETWEEN THE TRAILS AND RICHARDSON AND THE TRAILS OF GARLAND.

AND SO FOR THAT REASON, THAT WAS A, A HIGH PRIORITY FOR THE COUNTY TO FUND.

SO THERE IS AN ENORMOUS AMOUNT OF COUNTY FUNDS ON SECTION A, OKAY.

NOW IF, IF THE COUNTY COMES BACK AND SAYS, YEAH, YOU KNOW, WE'RE, WE WERE WANTING TO DELAY AN AD OR NOT DO THAT, WHICH I DON'T ANTICIPATE AT THIS POINT.

UH, WE, WE DID CERTAINLY WORK THAT INTO THE EQUATION.

OKAY.

SO SHOULD WE TALK TO, I GUESS I CAN TALK TO COMMISSIONER DANIEL, BUT WE'RE TALKING TO TWO, I DIDN'T KNOW.

I DIDN'T KNOW.

THOSE WAS OF COUNTY FUNDS TIED UP IN THAT.

THAT WAS ACTUALLY THE ONLY PROJECT ON HERE.

THAT'S ON THE TO-DO LIST.

I HAVE ANY OBJECTION TO, AND I GUESS FOR ME PERSONALLY, I MEAN, YOU KNOW, I LOOK AT THIS RIGHT HERE AND THE THINGS THAT AREN'T THE SEXY THING SUCH AS DRAINAGE, YOU KNOW, TO ME THAT THAT'S, THAT'S PRETTY IMPORTANT STUFF.

THERE'S QUALITY OF LIFE, YOU KNOW, I MEAN, ANY, YOU KNOW, DRAINAGE ISSUES THAT WE HAVE.

I THINK THOSE, THOSE, THOSE NEED TO BE ADDRESSED SOONER THAN LATER BECAUSE THE PROBLEM JUST KEEPS GETTING WORSE.

I MEAN, YOU KNOW, FOR THE ENTIRE WATERSHED AND MORE CONSTRUCTION THAT HAPPENS MORE DEVELOPMENT THAT HAPPENS FOR MORE WATER COMES OFF WAY.

AND THEN THE MORE IMPORTANT ISSUES, UH, YOU KNOW, IN PARTICULAR, THE CAR, THE ISSUE IS, IS A DIRECT RESULT OF COVERING THE PLANET WITH CONCRETE.

YEP.

AND SO, AND WESTERN HEIGHTS IS THE OTHER END OF IT, WHERE WE ARE SHOVING ALL THIS WATER.

WE CAN FIX IT ON, IN A, IN A STOP GAP, BUT WE STILL ARE NOT GOING TO BE ABLE TO HANDLE WHERE IT'S GOING.

SO YES, THESE ARE VERY COMPLEX ISSUES AND GARB ON,

[00:45:02]

YOU KNOW, YARD LAWN, I SERIOUSLY THINK ARE BLIND.

SOME OF THE MITIGATION TO DARWIN WOULD BE FIGURE OUT A WAY TO ELIMINATE SOMETHING CONCRETE OVER THERE.

I WOULDN'T MAKE ANY NORMOUS DIFFERENCE.

ALL THESE DRAINAGE PROJECTS THAT ARE ANYWHERE FURTHER SOUTH.

MY IGNORANCE IS I KNOW NOTHING ABOUT THE AREA.

I MEAN, I DON'T EVEN GARB ON THAT.

I'VE NEVER HEARD THAT WORD BEFORE, EVEN KNOW WHERE THAT IS.

SO MY DISTRICT, YEAH.

SO, YOU KNOW, I HAVE IGNORANCE IN THAT, BUT I DO FEEL THAT DRAINAGE ISSUES ARE IMPORTANT.

I FEEL THAT THAT'S SOMETHING JUST BECAUSE IT'S NOT A PARK OR PRETTY, AND THAT KIND OF STUFF, IT AFFECTS QUALITY OF LIFE.

IT AFFECTS HOW PEOPLE FEEL.

I'M SORRY.

DID YOU HAVE A QUESTION ABOUT, I CAN'T REMEMBER IF I SAW YOUR HAND GO UP, I'LL WAIT.

I'M DONE.

I'M DONE.

I'M OFF FROM A TINY LITTLE BOX.

I LOST, UM, RUN A NEW OPEN.

HE OPENED THIS TALKING ABOUT THE WRITTEN NEWS AND THE UNCERTAINTY AND THE APPEAL PROCESS.

I WAS READING SOMETHING THIS WEEK, WHETHER IT BEEN RECORD APPEALS WHEN WITH, WITH, WITH THE VOLUMES, THEY'RE HUGELY KIND OF KNOW THE NUMBERS WITHIN A CERTAIN TIME PERIOD.

HOW DO YOU THINK I WAS READING IT? AND I KNOW THAT THE DEADLINE HITS AS FAST FOR THE APPEALS, BUT AS A READER FOR HISTORIC GERMAN, STERIC NUMBERS APPEALS, HOW MIGHT, WHAT DELAYS ARE THAT? IS THAT GOING TO CREATE AN IT CITIES ACTUALLY GETTING SOME NUMBERS AS WELL, WHERE WE KNEW SIDES AND HOW THAT IMPACT ESCALATE? WELL, UH, WE, WE WILL HAVE OUR NUMBERS BY THE STATUTORY DEADLINE.

THE, WHEN, WHEN WE WEREN'T IN A HIGH APPEAL ENVIRONMENT, WHAT WOULD HAPPEN IS, IS, IS WE KNOW FROM HISTORY, HOW MUCH WE WERE GOING TO LOSE AS WE WENT THROUGH THE SUMMER, FOR EXAMPLE, IN JUNE, WE KNEW WE LOSE ABOUT 10% OF VALUE IN JULY.

IT MIGHT BE 3%.

AND, AND, AND SO BASED ON HISTORY, WE KNEW WHAT TO EXPECT AND WE COULD PLAN FOR THAT.

BUT OVER THE PAST COUPLE OF YEARS, AS PROPERTY VALUES HAVE INCREASED AND APPEALS HAVE INCREASED IT, THE TRENDS DON'T HOLD.

AND SO LOTS OF TIMES WE REALLY DON'T HAVE, UH, A VERY SOLID FEEL FOR WHAT THE NUMBER IS GOING TO BE UNTIL THE VERY LAST, BECAUSE, UH, RIGHT BEFORE WE GET CERTIFIED NUMBERS, THERE'LL BE A HUGE APPEAL NUMBER HIT.

AND ONE OF THE THINGS THE TAX BASE FOR THE TAX DISTRICT DOES IS, IS THAT WHEN, WHEN THEY GIVE US THE CERTIFIED VALUES, THEY HAVEN'T FINISHED ALL THE APPEALS.

WHAT THEY DO IS THEY TEST, THEY TAKE THE PROPERTIES THAT HAVE FINISHED THEIR APPEALS, AND THEN THEY TAKE THE PROPERTIES THAT ARE STILL WITHIN THE APPEAL.

AND THEY GIVE US WHAT THE PROPERTY OWNER IS SAYING.

IT'S WORTH NOT WHAT THE FINAL NUMBER IS GOING TO BE.

THEY ADD THOSE TWO TOGETHER.

THAT'S OUR CERTIFIED NUMBER.

AND, AND SO, UH, IT'S JUST BECOME, IT'S BECOME MORE AND MORE OF A SURPRISE, SO TO SPEAK AT THE END OF THE YEAR OR RIFLE, RIGHT, AS WE GET CERTIFICATION.

AND ONE QUESTION, SIR, UM, ON THOSE PROJECTS THAT WE WERE SHIFTING CAN USE THE AQUA FUNDS AND WE REFER THEM DIRECTLY.

THEIR STUFF HAS TO BE DEAD BY 2024, RIGHT? WILL THAT HAVE ANY IMPACT ON MAYBE THOSE TIMELINES WITH SHIFTS ALICE? SO THAT'S KIND OF IN OUR FINAL OR NEXT STEPS SLIDE WE HAD DISCUSSED THAT STAFF IS REVIEWING THE PROJECT LIST TO OPTIMIZE, YOU KNOW, THE USE OF GEO RGO FOR THE 19 AND OH FOUR PROGRAMS, CERTIFICATES OF OBLIGATION IN OUR AMERICAN RESCUE PLAN APP FUNDS.

WE HAVE TO HAVE ALL OF THE ARPA FUNDS COMMITTED, WHICH IS ON A PURCHASE COMMITMENT UNDER CONTRACT BY DECEMBER THE END OF DECEMBER IN 2024.

AND THEN ALL OF THE FUNDS MUST BE SPENT BY THE INSTITUTION DECEMBER IN 2026.

SO AS PART OF THAT STAFF EVALUATION, WE WILL IDENTIFY PROJECTS THAT WE KNOW ARE ALREADY PROBABLY READY FOR BID CONSTRUCTION.

WE'LL GET DONE BY THE DECEMBER 26TH DEADLINE AND MEET THE OTHER CATEGORY CATEGORY, WHATEVER THE WORD IS, THE CATEGORIES IN OUR GROUP, BECAUSE THEY HAVE KIND OF RESTRICTED IN THE SCOPE OF WHAT YOU CAN DO UNDER THE INFRASTRUCTURE

[00:50:02]

VERSUS VERSUS LOST REVENUE.

SO THEY KEEP COMING OUT WITH, YOU KNOW, WE'RE FINE GUIDANCE ON WHAT THAT PROJECT CRITERIA IS.

SO THAT IS PART OF THE STAFF EVALUATION.

WE'LL TAKE THE NEW CRITERIA, IDENTIFY THE PROJECTS THAT CAN GET DONE AND THEN COME BACK WITH THAT REVISED PLAN.

OKAY.

BUT YOU'RE LIKELY TO SEE A BIG J IS, IS THE ARPA FUNDS BE CONCENTRATED IN A FEW, WHICH MAKES IT MUCH EASIER TO ADMINISTER.

RIGHT.

THANK YOU.

ALL RIGHT, COOL.

WE I'VE GOT SOME COMPETITION, DEBORAH, UH, JUST WANT TO GET IN HERE BEFORE WE GET TOO FAR OUT.

UM, UH, SHE WANTS TO CONGRATULATE WITH STRATFORD AND STAFF ON THE, UM, THE, UH, RESOLUTION, THE ROOF PROVISION PLAN, UH, UNDER NO CIRCUMSTANCES, WILL I SUPPORT INCREASING OUR TAX RATE AT THIS TIME WHEN OUR CITIZENS ARE SUFFERING SUCH GREAT DISTRESS CIRCUMSTANCES ARE MARKEDLY DIFFERENT NOW VERSUS WHEN THEY WERE IN 2019.

UH, AND I DO THAT, UH, AT THIS POINT I'VE GOT SMITH, HEDRICK, ALBANY, AND MORE IN THE QUEUE.

SO, UM, JUST WANT TO REMIND EVERYBODY THAT THANKS TO THE TYRANNY COMMITTEE, WE KNOW HOW THE FLOOD PRONE PROPERTY POLICY THAT'S GOING TO HELP WITH.

AT LEAST THE LAKEWOOD ADDITION DRAINAGE IMPROVEMENTS.

WE ONLY HAVE THREE STRUCTURES, YOU'VE HAD COMPLAINTS AND BECAUSE OF THE RISING COST OF THIS PROJECT, WHICH I THINK STARTED AROUND 4 MILLION AND IS SITTING AT ALMOST 13 MILLION NOW, I THINK IT WOULD MAKE MORE SENSE FOR US TO LOOK AT USING THOSE PROGRAM FUNDS TO POTENTIALLY ACQUIRE THOSE PROPERTIES THAT HAD WATER IN THEIR GARAGE 15 YEARS AGO.

UM, IT JUST DOESN'T MAKE SENSE TO ME TO SPEND AN ENTIRE 13 MILLION IT'S KINDA LIKE A DUCK CREEK THING, THE 250 MILLION TO FIX EIGHT HOUSES OR WHATEVER, WHATEVER THOSE NUMBERS WERE.

AND SO, YOU KNOW, WE'VE GOT THESE THINGS SLATE AS PUSHED OUT PAST 20, 28, BUT I FEEL LIKE AT LEAST IN THAT PARTICULAR PROJECT, UH, WE MAY HAVE THE ABILITY TO ELIMINATE IT ALL TOGETHER.

AND SO I JUST WANTED TO ADDRESS COUNCIL MEMBER BASS HAS CONCERNS THAT MAYBE WE'RE LETTING SOME OF THE SLIDE, BUT WE DIDN'T HAVE THE TOOLS TO DEAL WITH IT IN THE SAME WAY IN 2019 AS WE DO TODAY.

SO I'M NOT TOO TOO CONCERNED ABOUT THAT PARTICULAR PROJECT.

AND I THINK WE'RE STILL GOING TO MAKE PROGRESS ON OUR, ON OUR DRAINAGE ISSUES.

I THINK THERE JUST MAY BE A BETTER WAY TO SOLVE THE PROBLEM.

SO JUST WANTING TO GET THAT OUT THERE.

THANK YOU, SIR.

APPRECIATE THAT.

YEAH.

I SPEAK TO THE DRAINAGE ISSUES, ESPECIALLY ON WEST IT'S COMPLETELY INDUSTRIAL AREA.

THE PIPES WERE PUT IN FIFTIES, SIXTIES, OR SEVENTIES, AND LARGE PROBABLY DESIGNED FOR A STORM EVENT.

IT'S A LOT LOWER THAN THE CURRENT DESIGN STANDARDS.

IN ADDITION, THE RAINFALL OF INCIDENT INCREASE THAT AMOUNT OF RAINFALL YOU RECEIVE AND STORAGE HAS GONE UP FROM THE DESIGN.

SO THE BEST THIS $20 MILLION NUMBER IS PROBABLY A RECONSTRUCTION OF THE ENTIRE DOWNSTREAM SYSTEM TO GET TO THE CREEK OUTFALL.

WE PROBABLY CUT THIS NUMBER SIGNIFICANTLY BY, YOU SAID, MR. MAYOR PURCHASING SOME PROPERTY, TURNING IT INTO A REGIONAL DETENTION POND AND STILL HAVING THAT DOWNSTREAM PIPE THAT'S SMALLER, BUT WE'RE ONLY RETAINING SOME ONSITE AND THEN LETTING IT FLOW OUT.

SO I THINK THAT'S IT, THAT NUMBER HAVING TO MAKE UP THE $70 MILLION PLUS CAN BE CUT JUST BY RE REEVALUATING THE SCOPE OF THAT ONE PROJECT ALONE RIGHT THERE.

I WOULD LIKE TO SEE, IS THERE A ADDITIONAL ADDITIONAL PROJECTS TO THESE 13 THAT WERE IDENTIFIED? IF WE HAVE TO GO THROUGH THIS PROCESS AGAIN IN THE FUTURE, I'D LIKE TO KNOW WHAT WAS THE NEXT 10 THAT I HAVE SOMEBODY IN MIND ALREADY THAT COULD BE PUSHED OUT, BUT I'M GOING TO HAVE STAFF LOOK AT THAT.

UM, NO.

UM, DO THE PEANUT GALLERY THEY'RE TELLING YOU THEY'RE ALL LAUGHING BECAUSE THEY KNOW THAT THE MOST POLITICALLY SAFE ANSWERS START REALLY THERE.

UH, AGAIN, SOME OF THE PROJECTS SIMILAR TO HOLFORD A WE THINK NEED TO BE REVISITED BEFORE, BEFORE WE GO FORWARD.

AND, UH, AND, AND I, I WANNA, I WANT TO ASSURE COUNCIL THAT AS THIS CAPITAL PROGRAM CONTINUES WHERE WE DON'T HAVE BLINDERS ON, AS THESE COSTS MEMBERS GROW, THE QUESTION IS CONSTANTLY BEING ASKED, IS THIS WORTH DOING ANYMORE? OR IS THERE ANOTHER WAY TO SOLVE THIS? AND SO THOSE QUESTIONS ARE BEING ASKED AND, AND THOSE WILL BE BROUGHT TO YOU IS

[00:55:01]

AS WE GO FORWARD.

BUT THIS, UH, UM, UH, THIS, THIS BOND PROJECT IS NOT ONE IN WHICH WE PASS A SET OF PROJECTS THAT WE JUST GO DO MORE THAN ANY BOND PROGRAM I'VE BEEN ASSOCIATED WITH, WHERE THERE IS THIS CONSTANT PROCESS OF RE-EVALUATION HAPPENING.

THAT'S GOOD TO HEAR IS THAT, UH, YOU KNOW, I'M CONCERNED THAT WE'LL END UP SITTING BACK HERE IN A YEAR AND DOING THE SAME THING WITH COSTS, KEEP GOING, WHO KNOWS WHAT'S GOING TO HAPPEN? THAT'S MY CONCERN.

THANK YOU.

WELL, YOU KNOW, TO THAT POPPED IN MY HEAD, YOU KNOW, WHEN WE, WE DEVELOPED THE GDC THROUGH ALL THAT, AND WE KNOW IT WAS GOING TO BE A LIVING, BREATHING DOCUMENT, IT WASN'T JUST HERE WE ARE, WE'VE CARVED IN STONE, LET'S HANG IT ON THE WALL.

UH, YOU KNOW, AND I THINK WE'RE GOING TO HAVE TO TREAT THIS BOND PROGRAM THE SAME WAY, YOU KNOW, WHEREAS THE 2004, THAT DIDN'T HAPPEN, THERE WAS NOT A RE-EVALUATION, THERE WAS JUST A STOPPAGE AND WE'RE JUST GOING TO, YES, WE PROBABLY, FOR THE, FOR THE DURATION OF THIS PROGRAM, WE ARE PROBABLY GOING TO HAVE TO CONSTANTLY ADJUST AND AMEND AND PROJECTS ARE GOING TO FALL IN ALL OUT.

WE'RE GOING TO HAVE THE UNEXPECTED, THE SENIOR CENTER OF, YOU KNOW, I MEAN, THAT'S PROBABLY AN EXTREME, UH, YOU KNOW, PROBABLY AN EXTREME EXAMPLE OF, OF PROJECTS FALLING ON OUR KIDS.

UH, BUT THAT'S ALWAYS GOING TO HAPPEN, YOU KNOW, AND, AND RATHER THAN JUST SLAMMING ON THE BRAKES AND SAY, THIS IS TOO, YOU KNOW, THIS IS TOO MUCH WORK.

I MEAN, WE'RE GOING TO HAVE TO DO THE WORK.

THE ONE THING I HAVE TO SAY THAT IS THAT THE VOTERS APPROVED EVERY PROJECT THERE WAS IN THE BOND PROGRAM.

THEY DIDN'T NECESSARILY APPROVE THE PROJECTS THAT WE ALL AGREE TO AS PART OF ARPA.

SO THAT SOMETHING TO CONSIDER THERE.

YEAH, JUST TO FOLLOW ON WITH, FOR A, I'VE HAD A LOT OF THAT SAME ON SOME OF THAT, THAT, THAT, YOU KNOW, I HAD THAT BACK WHEN WE APPROVED THE, UH, THE HEALTH CLINIC, THAT IT WAS $8 MILLION, IT HAD NOT BEEN THROUGH ANY KIND OF COMMON APPROVAL.

I FEEL A LITTLE BIT OF THAT SAME KIND, KINDNESS, CANDIDLY, WITH THE SENIOR CENTER.

UM, THAT'S A MUCH LARGER PROJECT THAN WHAT WE HAD.

UM, AND IN MY MIND, YOU KNOW, WHEN, WHEN WE WERE TALKING ABOUT PROJECTS IN 2019, IT'S LIKE PROJECTS EXCEED X MILLION OR SOMETHING, THEN GEE WHIZ, THAT'S REALLY SOMETHING THAT WE OUGHT TO HAVE VOTER APPROVAL ON.

SO I'M A LITTLE SKIDDISH ON THAT AND EMPLOYED IN MY MIND WITH, YOU KNOW, COULD WE DO A, COULD WE GO TO THE VOTERS WITH WHAT I WOULD CALL IT, MINI BOND, LIKE GET APPROVAL FOR THESE TWO OR THREE YEAR HOVERING PROJECTS AND GET IT IN.

SO, UM, SO THAT'S SOMETHING TO JUST THINK ABOUT, DEPENDING ON HOW YOU GUYS FEEL ABOUT WHAT KINDS OF THINGS WE NEED TO HAVE APPROVAL FOR.

I CAN'T IMAGINE A WORLD WHERE WE WOULD NOT GET APPROVAL FOR A NEW SENIOR CENTER, ALTHOUGH THE $20 MILLION, I MEAN, I'M GOING, YES, WE SHOULD SPEND MORE ON OUR SENIORS THAN ON OUR DOGS AND CATS, BUT, UM, YOU KNOW, PUT, PUT THAT TO NUMBER THAT, THAT REALLY KIND OF, UM, THAT REALLY KIND OF HIT ME.

AND I'LL SAY THIS PAUL, ON WHAT BRIAN SAID IT, WHEN YOU SAID DYLAN, YOU KNOW, TOWNSEL HAS BEEN, I THINK THE LESSONS OF THE 2004 BOND PROGRAM WHERE THE COUNCIL NEEDED TO BE MORE INVOLVED, THAT 2004 WAS LIKE, COUNCIL WAS NOT SUPER ENGAGED IN PUSHING ON, LET'S GET THIS STUFF DONE, DO THIS, LET'S DO THAT.

AND NOT, YOU KNOW, I'VE HAD A LOT OF DISCUSSIONS WITH STAFF OVER THE YEARS ABOUT THAT, THAT COUNCIL.

YEAH.

SO THE 2019 WITH JACKIE BRITTANY IN A PROJECT MANAGEMENT OFFICE AND, YOU KNOW, KIND OF, WE PUT A LOT MORE AS A CITY AND AS A COUNCIL, A LOT MORE WORK INTO THE 2019 PROGRAM, YOU KNOW, ALL THE WORK THAT HAPPENED AT, UH, UH, AT, AT THE BOND COMMITTEE LEVEL AND THEN NOR JUST ABOUT IT STILL, AND YET, AND YET STILL WE COME WITH, YOU KNOW, HERE ARE ALL THINGS WE DIDN'T KNOW BECAUSE SOME OF THESE PROJECTS ARE DEEPLY, THE DRAINAGE POINTS ARE SO INSANELY COMPLICATED.

UM, BUT, BUT I THINK AS A COUNCIL, YOUR COUNCIL WILL NEED IN THE, IN THE ENSUING YEARS TO KIND OF KEEP UP TODAY.

I MEAN, EVEN THINGS LIKE THERE WERE NO, THERE WERE NO QUARTERLY ON PROGRAM UPDATES FOR 2004.

THERE WAS NONE OF THAT KINDS OF STUFF.

AND SO HAVING THOSE THINGS, I THINK HAS BEEN A GREAT THING BECAUSE WE DO NEED TO DELIVER ON THAT'S.

I HAVE A LOT OF, IT'S HARD FOR ME TO SAY VOTERS APPROVE THIS, AND NOW WE'RE GOING TO SAY, WELL, WE'RE NOT GOING TO DO IT.

UM, THAT I HAVE A HARD TIME WITH THAT JUST BECAUSE I'VE HAD, YOU KNOW, WHEN PEOPLE TALK TO ME ABOUT, FOR EXAMPLE, THE SKATE PARK, AND I SAY, WELL, VOTERS APPROVED IT 20, ALMOST 20 YEARS AGO, SO WE NEED TO BUILD IT.

UM, SO THERE'S A LOT OF, I MEAN, AS

[01:00:01]

LONG AS THIS COGNITIVE DISSONANCE ASSOCIATED WITH SOME OF THIS, THAT'S WHY I APPRECIATE JEFF.

YOU'RE TALKING ABOUT THE TWO SETS AND WHATNOT.

AND ALTHOUGH I THINK, YOU KNOW, IT DELAYING ALL OF THESE PROJECTS THAT ARE HERE ON THE WAY, ALL MAKE SENSE.

NONE OF THE PROJECTS WITH THE EXCEPTION OF THE AUDUBON PARK SERVICE FOR A REPLACEMENT, NONE OF THESE PROJECTS ARE, ARE BEING CANCELED PER SE.

AND WE'RE NOT SAYING WE'RE NOT GOING TO DO THAT, WHAT WE'RE LOOKING AT THEM AND MAYBE LOOK AT A DIFFERENT WAY.

AND I WOULD SUGGEST KEEPING THE, THAT, THAT TWO SENTENCE.

I THINK I'M GLAD THAT THAT'S IN YOUR MIND AND BECAUSE WE MAY NEED THE LAKE, YOU KNOW, PART OF ME SAYS YOU COULD, YOU KNOW, COULD WE RAISE IT NOW? COULD YOU RAISE THAT AMOUNT NOW AND THEN USE THAT TO PAY DOWN SOME OF OUR DEBT FASTER OR TO PAY DOWN SOME OF OUR HIGHER INTEREST AT, ARE THERE WAYS THAT WE COULD USE THAT 2 CENTS WOULD ACTUALLY BENEFIT THE PROGRAM NOW TO BACK US OFF, BACK OFF OF THAT THREE AND A HALF PERCENT NUMBER? I DON'T KNOW, BUT I THINK THAT'S SOMETHING IT'S SOMETHING TO THINK ABOUT BECAUSE I THINK THAT'S SOMETHING THAT MAKES A LOT SENSE IF, UM, YOU KNOW, A HALF CENT, UH, YOU KNOW, HALF CENT, IT GENERATES A FAIR AMOUNT OF MONEY AND A HALF SET, YOU KNOW, FOR OUR AVERAGE, UH, HOMEOWNER TO HAVE THESE NUMBERS.

CORRECT.

BUT IF YOUR HOME IS A HUNDRED THOUSAND DOLLARS, THAT'S LIKE $5 A YEAR.

I MEAN, IT'S NOT, WE'RE NOT TALKING ABOUT THESE MASSIVE SUMS OF MONEY.

UM, SO I WOULD DEFINITELY KEEP THAT IN MIND AND AS FOR THE, BUT AS WE LOOKED AT, UM, YOU KNOW, AS WE LOOK AT DRAINAGE COSTS AND OTHER STUFF, WE REALLY HAVE TO START LOOKING AT WHAT DO THE COST BENEFIT ANALYSIS? THE REASON WE CAME UP WITH A FLOOD-PRONE PROPERTIES PROGRAM MONEY FOR THAT IS BECAUSE IT'S ROBERT, JOHN MENTIONED, YOU KNOW, ONE OF THE FIRST CONVERSATIONS I HAD WHEN I GOT ON COUNCIL WAS TO, UM, WE'RE TALKING WITH JOHN BAKER BECAUSE I HAVE RECEIVED YOUR CALL ABOUT, YOU KNOW, WHY CAN'T BE FIXED UP CREEK.

AND AS ONLY JOHN DOES, IF HE GAVE ME THE KINDNESS EDUCATION AND WHY THAT WAS A TOTALLY STUPID IDEA, BUT YOU KNOW, LIKE IT, BUT BOTTOM LINE WAS, IT WAS GOING TO BE, AT THAT TIME SIX YEARS AGO, ESTIMATED $250 MILLION TO KEEP 10 HOUSES FROM FLOODING.

AND THAT'S JUST, THAT'S NOT FISCALLY RESPONSIBLE.

THAT DOESN'T MAKE SENSE.

THAT'S WHERE THE FLOOD-PRONE PROPERTIES PROGRAM CAME FROM.

AND NOW WE KNOW WE HAVE LIKE FOUR OR FIVE, 4 MILLION OF THAT 5 MILLION IN THAT, BUT WE KNOW THAT WE BUILD THAT PROGRAM, RIGHT.

AND GO AFTER THESE HAZARD PROGRAMS, WE'LL GET FEMA REIMBURSEMENT UP TO 90% OF THAT, WHICH MEANS THAT THAT 4 BILLION KIM COME 40 MINUTES, WE DIDN'T MAKE KNOW.

AND SO THAT MAY BE SOMETHING, AS WE LOOK AT THESE, DOES IT MAKE SENSE? AND WE'VE HAD THOSE SAME QUESTIONS.

UM, YOU KNOW, GATEWOOD WAS ASSEMBLING SIMILAR QUESTIONS THAT, UM, THAT BJ PREDECESSOR CAME OUT AND SAID, HE DIDN'T THINK IT WAS WORTH THAT'S.

I GAVE WHAT ENDED UP OUT OF THE BOND PROGRAM.

UH, YOU KNOW, IF YOU'VE LOOKED OUT, CAME AND SAID, HE DIDN'T THINK THE GAME WAS WORTH THE CANDLE.

UH, AND SO AS WE LOOK AT THESE THINGS, I DON'T MIND PUSHING SOME OF THESE OFF AND LOOKING AT, ARE THERE OTHER BETTER WAYS TO DO THIS? CAUSE THE, IS THE ONGOING PROBLEM REALLY IS, YOU KNOW, CAN WE GET THE WATER OUT OF HERE, BUT WHERE DOES IT GO? I MEAN, THAT'S THE, YOU KNOW, AND THAT'S JUST, EVEN WITH OUR OWN CITY, FLOODING IS KIND OF A REGIONAL ISSUE NOW.

AND WE'RE GOING TO HAVE TO TAKE A WHILE TO LOOK AT THAT BECAUSE COLIN COUNTY, WHICH COMPRISES A LOT OF OUR FLOODING OR OUR WATERSHED FOR OUR CREEKS, COLLIN COUNTIES, YOU LOOK AT THE PROJECTIONS, THEY DO AT THE RTC COLLIN COUNTY FIXING TO GET PAID OVER BIG TIME.

THEY'RE GOING TO ADD BETWEEN NOW AND 2041.

I THINK THE ESTIMATE IS THEY'RE ADDING OVER 2 MILLION, 2 MILLION BEFORE IN COLLIN COUNTY.

AND, AND THAT MEANS A LOT OF THAT.

AND SO YOU START LOOKING AT THESE REGIONAL, SO WE'RE GOING TO HAVE MORE OF THIS TO CONSIDER, BUT ANYWAY, SO THOSE ARE MY THOUGHTS ON, ON THAT.

I'M VERY HAPPY WITH THIS.

YOU KNOW, LET'S SAY LET'S JUST MOVE FORWARD ON THIS AND KEEP AN EYE ON THINGS AS WE HAVE THAT AND, AND REALIZE THAT WE, WE STILL HAVE OTHER TOOLS TO DEPLOY.

THERE'S STILL OTHER THINGS THAT WE CAN DO.

UH, AND IF THAT INVOLVES, YOU KNOW, RAISING THE TAX RATE A LITTLE BIT OR SOME OTHER THINGS THAT WE CAN KEEP THESE PROJECTS GOING AND MOVING AND KEEP PULLING PROJECTS OFF THE GROUND, UM, I THINK WE NEED TO, YOU KNOW, ON THE, ON THE ONE NEW, BIG THING TO SENIOR CENTER, I THINK THAT'S SOMETHING THAT'S LIKE, YOU KNOW, TALK TO YOUR CONSTITUENTS, LET'S START GETTING THE WORD OUT AND SEE IF THAT'S SOMETHING WHERE PEOPLE ARE LIKE, NO, THAT NEEDS TO BE IN A BOND BROKER OR NOT.

I MEAN,

[01:05:01]

THERE'S A, THERE'S KIND OF A HIT OR MISS WITH THAT.

NOT EVERYTHING WE'VE DONE IN THE PAST, YOU KNOW, THAT, UM, DOG PARK WAS NOT, I CAN'T TELL HOW MANY PEOPLE ON TWO BOATS THIS CORE OVER THE YEARS, THIS DOG PARK WAS NOT IN BOND PROGRAM ITEMS DOES COMPLETE, WE WOULD SEE, OH, NOT ONLY DO WE COULD DO THAT TODAY, BUT, UM, BUT WITHOUT PARKER HAS DONE COMPLETELY