Jun 29, 2024 Council Budget Work Session

[00:00:08]

WELL, GOOD MORNING AND WELCOME TO A SPECIAL MEETING OF THE GARLAND CITY COUNCIL.

THIS FINE SATURDAY MORNING.

WE HAVE THIS IS SORT OF OUR BUDGET PREVIEW MEETING.

WE'VE GOT WE'VE GOT SEVERAL TOPICS SEVERAL TOPICS ON THE AGENDA THAT WE WILL BE COVERING THROUGHOUT THE DAY.

JUST LET EVERYBODY KNOW WE WILL TAKE SOME PERIODIC BREAKS AS WE GO DEPENDING ON TIMING.

AND THEN WE WILL HAVE A LUNCH BREAK.

AT SOME POINT.

AND WE SEEM TO HAVE SOMETHING GOING ON WITH THE MIKES AS FAR AS WHICH WHICH OF YOU CUES UP? SO WE MAY BE HAVING TO MAKE IT UP AS WE GO A LITTLE BIT.

BUT WE WILL GO AHEAD AND GET STARTED.

AND ONE THING THAT OUR FIRST ITEM ON THE AGENDA IS PUBLIC COMMENTS.

I THINK WE HAVE TWO SIGNED UP AT THIS POINT.

AND I THINK THOSE BOTH OF THOSE ITEMS ARE PERTAINING TO THE RETIREE BENEFIT SECTION UNDER SEVEN.

WHAT I'D LIKE TO DO IS MOVE THOSE PUBLIC COMMENTS UNTIL AFTER THAT PRESENTATION.

THAT WAY, THE COUNT YOU KNOW, THE COUNCIL HAS BEEN BRIEFED ON THIS TOPIC, BUT WE HAVE NOT SEEN THE PRESENTATION.

AND SO THAT THE SPEAKERS AND THE COUNCIL ARE COMMENTING AND QUESTIONING UNDER THE SAME ITEM.

SO WE WILL PUSH THE WHEN WE GET TO ITEM SEVEN B IS RETIREE BENEFITS.

WE'LL HAVE THE PRESENTATION.

COUNCIL WILL HAVE A CHANCE TO ASK QUESTIONS, AND THEN WE'LL HAVE THE SPEAKERS.

ALL RIGHT. SO WE'LL MAKE SMALLER.

THAT WAY WE KEEP EVERYTHING IN AS IN CONTEXT AS WE CAN.

SO FIRST OFF WE'LL GO WITH OUR ITEM TWO OPENING REMARKS.

[2. Opening Remarks - City Manager Jud Rex]

IT HAS MY NAME ON IT, BUT YES, IT WORKS.

AND SORRY FOR THUMPING THE MIC.

WHOEVER IS GOING TO TRANSCRIBE THE MINUTES LATER.

WELL GOOD MORNING MAYOR AND COUNCIL, AND I LOOK FORWARD TO ENGAGING WITH YOU TODAY ON SOME VERY IMPORTANT TOPICS.

EXCITED ABOUT THE THINGS THAT WE'RE GOING TO TALK ABOUT.

WE'RE WE'RE PLANNING OUT GARLAND'S FUTURE AND NOT JUST LOOKING AT OUR FISCAL 25 BUDGET, BUT REALLY LOOKING AT SOME LONG TERM INITIATIVES TODAY.

SO WE'RE EXCITED TO BE ENGAGED IN THAT.

I DO WANT TO RECOGNIZE THE MEMBERS OF TEAM GARLAND THAT HAVE HELPED KIND OF PREPARE US FOR THIS, NOT JUST OUR CFO, MATT WATSON, AND OUR BUDGET DIRECTOR, ALLISON, BUT MANY OF THE TEAM THAT YOU'RE GOING TO HEAR FROM TODAY HAVE BEEN PREPARING FOR TODAY AND PREPARING FOR THE OPERATIONAL BUDGET.

SO I JUST WANT TO RECOGNIZE THEM AND THANK THEM FOR THEIR EFFORTS AS, AS THEY'LL YOU'LL HEAR FROM THEM TODAY.

REALLY, THE PURPOSE OF TODAY IS TO BUILD AND REINFORCE A FOUNDATION OF INFORMATION FOR THE COUNCIL TO MAKE IMPORTANT DECISIONS NOT ONLY RELATED TO THE FISCAL 25 BUDGET, BUT FOR LONG TERM FUNDING FOR SOME IMPORTANT INITIATIVES.

WE'RE NOT LOOKING FOR NECESSARILY DECISIONS ON EVERYTHING TODAY, BUT WANT TO SET THE CONTEXT UP AND START TO LAY THAT FOUNDATION FOR DECISIONS IN THE FUTURE.

AND RECEIVE WHAT FEEDBACK YOU HAVE FOR US TODAY AS WELL.

THIS THIS TIME IS FOR YOU.

WE'VE, YOU KNOW, SPENT A LOT OF TIME PREPARING FOR THIS, BUT REALLY, WE ARE COMMITTED TO HELP PROVIDE YOU THE INFORMATION THAT YOU NEED TO MAKE THE DECISIONS AND GIVE US THE FEEDBACK THAT THAT COUNCIL DESIRES.

SO TO THAT END, THE QUESTIONS YOU ASK TODAY AND IN THE FUTURE ARE VITAL TO STEERING OUR WORK.

WE WANT TO AGAIN, THIS TIME IS FOR YOU, AND WE'RE HERE TO SERVE YOU AND THE CITIZENS OF GARLAND AND GET YOU THE INFORMATION THAT YOU NEED.

AND SO YOU KNOW HOW I ALWAYS TALK ABOUT WHAT WHAT WE WHAT WE WE DON'T KNOW WHAT WE DON'T KNOW.

AND SO WE WANT TO GET YOU TO THE POINT WHERE YOU KNOW WHAT YOU DON'T KNOW, SO YOU CAN ASK THE QUESTIONS THAT WILL GET YOU TO THE INFORMATION THAT YOU NEED.

SO PLEASE CHIME IN AGAIN.

THIS THIS TIME IS FOR YOU.

AND WE'LL STOP AT CERTAIN POINTS AFTER THE PRESENTATIONS TO ALLOW YOU OPPORTUNITY TO ASK QUESTIONS AND PROVIDE FEEDBACK, AND ALSO NOT JUST ON THE PROVIDE FEEDBACK SIDE, BUT ASK FOR ADDITIONAL INFORMATION AND MORE CONTEXT AROUND THINGS.

SO THIS WE'RE GOING TO START WITH A GOOD FOUNDATION.

BUT I KNOW THAT THERE'S GOING TO BE MORE INFORMATION OUT THERE THAT WILL HELP GET YOU THE INFORMATION YOU NEED.

SO WITH THAT AND ACTUALLY I NEED IF SOMEBODY DOESN'T MIND JUMPING UP THERE TO ADVANCE SLIDES, MAYBE.

LETICIA, IF YOU. I FORGOT TO GRAB THE CLICKER.

THAT'S PERFECT. TIFFANY.

THANK YOU. I NORMALLY GRAB THE CLICKER AND I FORGOT TO.

THAT'S MY FAULT.

SO I WANT TO JUST BRIEFLY REVIEW OUR AGENDA REAL QUICK.

I THINK IT'S KIND OF BROKEN DOWN INTO THREE PARTS FOR THE FOR THE MOST PART.

[00:05:04]

SO YOU'RE GOING TO HEAR THE CITIZEN SURVEY RESULTS FROM TIFFANY HERE IN A LITTLE BIT.

WE'RE ALSO GOING TO VISIT AND REVISIT THE CITY'S MISSION AND VISION.

AND WE GREATLY APPRECIATE COUNCIL TAKING TIME TO FILL OUT THE SURVEY.

NOT JUST ON ON THE MISSION AND VISION, BUT ALSO OUR TEN STRATEGIC FOCUS AREAS.

THERE WAS INVALUABLE INFORMATION EMBEDDED IN THAT, AND WE LOOK FORWARD TO GOING OVER THOSE RESULTS WITH YOU TODAY.

THE SECOND PART REALLY IS FOR ONE MORE TIFFANY.

SORRY. THE SECOND PART WE'RE CALLING OUTLOOK'S OUTLOOK AND CHALLENGES.

SO WE'RE GOING TO TALK ABOUT WHAT WE'RE SEEING IN TERMS OF THEMES FOR THE UPCOMING BUDGET.

WE'LL TALK ABOUT GARLAND'S CHALLENGE AND SOME OF OUR LONG TERM FINANCIAL TRENDS AND OUTLOOK, AND THEN TALK ABOUT AVAILABLE FUNDING CAPACITY FOR THOSE FUTURE ISSUES. AND THEN WE'LL JUMP INTO SOME SPECIFIC PRESENTATIONS ON SPECIFIC ISSUES, TALKING ABOUT RETIREE BENEFITS FOR OUR CITY FACILITIES, OUR CITY STREETS, AND A POTENTIAL NEXT BOND INITIATIVE THAT COUNCIL HAS BEEN CONTEMPLATING AND HOPEFULLY READY TO MOVE FORWARD WITH THAT.

THE THREE CIRCLES.

SO I WANT TO TOUCH ON ON THESE THREE CIRCLES JUST TO PROVIDE SOME CONTEXT HERE IN SETTING THE STAGE FOR TODAY.

SO WE'VE GATHERED SOME VALUABLE INFO INPUT FROM GARLAND RESIDENTS THROUGH THE CITIZENS SURVEY.

OF COURSE, CITY STAFF AND TEAM GARLAND IS GOING TO PROVIDE SOME ESSENTIAL INFORMATION TODAY.

AND THEN COUNCIL, YOU'RE GOING TO HAVE AN OPPORTUNITY TO DELIBERATE AND ASK QUESTIONS.

AND AND THAT'S, YOU KNOW, THOSE THREE PIECES AND ESPECIALLY WHERE THEY COINCIDE AND WE'RE LISTENING TO THE RESIDENTS, WE GET INFORMATION FROM STAFF. AND THEN COUNCIL TAKES THE OPPORTUNITY TO ENGAGE AND ASK QUESTIONS.

WHERE THOSE THREE CIRCLES COINCIDE REALLY IS WHERE WE HAVE GREAT DECISIONS MADE.

AND SO I JUST WANTED TO KIND OF PROVIDE SOME CONTEXT AROUND THAT.

OUTCOMES ARE ALWAYS POSITIVE WHERE THOSE THREE CIRCLES COLLIDE AND, AND THEY'RE WORKING IN SYNC.

SO I THINK WITH THAT THAT'S ALL I WANTED TO START WITH.

AND WE'LL LET TIFFANY TAKE IT FROM THERE ON THE ON THE CITIZEN SURVEY, IF THAT'S OKAY.

MAYOR. YES, SIR. JUST REAL QUICK.

LOOKS LIKE WE HAVE CORRECTED THE MICS.

SO EVERYBODY'S EVERYBODY'S POPPING UP UNDER THE UNDER THE RIGHT NAMES AT THIS POINT.

AND WE ARE BROADCASTING LIVE.

WE WERE, I THINK, ORIGINALLY STATED THAT IT WOULD BE RECORDED AND REPLAYED LATER, BUT I DO BELIEVE WE ARE BROADCASTING LIVE THIS MORNING.

SO WITH THAT, WE WILL MOVE ON TO ITEM THREE.

[3. Polco Citizen Survey Results - Chief Communication Officer Tiffany Veno]

AND SO THOSE ARE LISTED ON THE SCREEN FOR YOU.

AND THROUGH EXTENSIVE RESEARCH, POLCO HAS FOUND THAT THOSE ARE THE AREAS THAT ARE MOST IMPACTFUL TO A RESIDENTS QUALITY OF LIFE.

SO YOU'LL SEE SAFETY, UTILITIES.

MOBILITY. COMMUNITY DESIGN.

ECONOMY. PARKS AND RECREATION, INCLUSIVITY AND ENGAGEMENT, NATURAL ENVIRONMENT, HEALTH AND WELLNESS, AND THEN EDUCATION, ARTS AND CULTURE.

OUR SURVEY WAS CONDUCTED THROUGH TWO METHODS, THE FIRST BEING A PROBABILITY BASED RANDOM SAMPLE.

PULKO PURCHASED ALL OF THE ADDRESSES FOR GARLAND, AND THEN THEY RANDOMLY SELECTED 6500 TO MAIL INVITATIONS. SO WHAT THAT LOOKED LIKE IS FIRST THEY MAILED A POSTCARD ON APRIL 5TH THAT HAD A QR CODE THAT LINKED TO THE DIGITAL SURVEY ON APRIL 12TH.

THEY THEN MAILED A PRINTED SURVEY AND BOTH OF THE QR CODE FOR DIGITAL AND THE PRINTED SURVEY HAD INSTRUCTIONS IN ENGLISH, SPANISH AND VIETNAMESE AND THEN THE OPPORTUNITY FOR OUR RESIDENTS TO COMPLETE THE SURVEY IN THE LANGUAGE OF THEIR CHOICE.

SO THE DEADLINE TO COMPLETE WAS MAY 10TH, AND FROM OUR RANDOM SAMPLE WE RECEIVED 463 RESULTS, WHICH IS APPROXIMATELY A 7% RESPONSE RATE. OUR SECOND METHOD WAS OPEN PARTICIPATION.

SO WHAT THAT MEANS IS THAT THE CITY COMMUNICATED THE LINK FOR DIGITAL PARTICIPATION AND ALSO THE OPPORTUNITY TO COMPLETE IT VIA A PRINTED COPY OF THE SURVEY. AND SO OUR DIGITAL SURVEY WENT LIVE APRIL 19TH, AND THEN OUR PRINTED SURVEYS WERE AVAILABLE APRIL 25TH.

AND SO THEY WERE AVAILABLE IN 18 LOCATIONS, INCLUDING ALL OF OUR LIBRARIES, ALL OF OUR REC CENTERS CITY FACING FACILITIES LIKE CITY HALL,

[00:10:02]

AGAIN, BOTH THE DIGITAL SURVEY PRINTED SURVEY AVAILABLE IN ENGLISH, SPANISH AND VIETNAMESE, AND WE COMMUNICATED IT IN A LIST OF WAYS, WHICH I'LL EXPLAIN HERE IN A MINUTE.

AND MAY 10TH WAS THE SAME DEADLINE.

WE RECEIVED 193 RESPONSES THROUGH OPEN PARTICIPATION.

IF YOU'RE WONDERING WHO RESPONDED, HERE'S KIND OF A BREAKDOWN.

WE HAD BOTH MALE AND FEMALE.

WE HAD AGE RANGES OF 18 TO 34, 35 TO 54, 55 PLUS, BUT BOTH RANDOM SAMPLE OPEN PARTICIPATION SAW MORE FEMALES AND MORE 55 PLUS.

WE ALSO HAD 19% OF OUR RANDOM SAMPLE, 17% OF OUR OPEN PARTICIPATION THAT IDENTIFIED AS HISPANIC OR LATINX, AND THEN 43% OF RANDOM SAMPLE, 30% OF OPEN PARTICIPATION THAT IDENTIFIED AS NOT ONLY WHITE.

SO ONE THING TO NOTE HERE IS THAT WHILE THAT'S OUR BREAKDOWN OF WHO RESPONDED, THAT'S NOT THE SURVEY RESULTS THAT YOU SAW. AND WE'RE GOING TO TALK ABOUT HERE IN A MINUTE.

THAT'S NOT HOW THEY WERE WEIGHTED.

SO POLCO THEY LOOKED AT OUR CENSUS DATA AND THEY WEIGHTED THE RESPONDENTS ACCORDINGLY SO THAT THEY WERE BETTER REPRESENTATIVE OF OUR COMMUNITY.

SO THAT'S JUST A THING TO NOTE THERE.

WE TALKED ABOUT COMMUNICATION EFFORTS BASICALLY ANY WAY THAT I COULD THINK OF TO GET IN FRONT OF THE COMMUNITY, I DID.

THIS IS A LIST THAT'S NOT COMPREHENSIVE.

CITY PRESS, A PRINTED NEWSLETTER THAT GOES TO EVERY HOME.

IT WAS ON THE BACK PAGE, SO PEOPLE DIDN'T EVEN HAVE TO OPEN IT UP TO SEE IT.

MULTIPLE E NEWSLETTERS, OUR CITY PRESS BRIEFS CONCERTS, CULTURAL ARTS SENDS A NEWSLETTER OUT NEIGHBORHOOD VITALITY SENDS ONE OUT HERITAGE CROSSING PARKS AND RECREATION.

WE INCLUDED IT IN ALL OF THOSE.

WE PAID TO ADVERTISE IT IN THE TEXT TEXAS METRO NEWS NEWSLETTER.

WE PUT IT ON CITY DEPARTMENT OR CITY SOCIAL MEDIA CHANNELS AND THEN HAD OUR DEPARTMENT SHARE IT.

WE DID BOOSTING OF SOCIAL MEDIA POSTS TO GET IT IN FRONT OF MORE PEOPLE.

WE EVEN DID A FACEBOOK LIVE WITH VIETNAM UNITED FC.

WE HAD 28 FRAMES ALL AROUND THE CITY AT OUR REC CENTERS, OUR LIBRARIES, OUR EARLY VOTING SITES, BECAUSE THIS HAPPENED DURING EARLY VOTING IN THE MAY ELECTION.

POSTERS, FLIERS, TABLE TENNIS.

AGAIN, ANY WAY THAT I COULD THINK OF, EVEN SOME OF THE EVENTS WE HAD OUR MUSIC THIRD MADE MUSIC MADE HERE CONCERT ON MAY 3RD AND THE MAY 4TH DUCK CREEK LITTER CLEANUP.

SO GETTING INTO OUR RESULTS YOU GUYS HAVE ALREADY GOTTEN A LINK TO THOSE.

IT'S ON THE SCREEN AS WELL AS A QR CODE TO ACCESS THAT HERE.

BUT I WANTED TO FIRST TALK ABOUT BENCHMARKING AND POLCO DOES THEIR NATIONAL COMMUNITY SURVEY IN MORE THAN 500 CITIES SO THEY CAN USE THAT DATA TO COMPARE OUR RESULTS TO.

SO WE ACTUALLY HAD THREE SETS OF BENCHMARKING.

WE HAD NATIONAL BENCHMARKING.

WE HAD BENCHMARKING FOR TEXAS CITIES AND THEN BENCHMARKING FOR CITIES THAT HAVE A MEDIAN HOUSEHOLD INCOME LESS THAN $100,000, YOU'LL TYPICALLY SEE HIGHER, LOWER, OR SIMILAR SIMILAR MEANS.

OF COURSE, COMPARABLE RESULTS LOWER MEANS TEN OR MORE POINTS LOWER OR 10 TO 20 POINTS LOWER, AND HIGHER MEANS 10 TO 20 POINTS HIGHER.

IF YOU SEE MUCH HIGHER AND MUCH LOWER, THAT'S MORE THAN 20 POINTS HIGHER, MORE THAN 20 POINTS LOWER, AND WE DID NOT RECEIVE ANY MUCH LOWERS.

JUST TO LET YOU ALL KNOW THAT THERE WERE 141 QUESTIONS FOR OUR SURVEY.

96 OF THOSE QUESTIONS, ROUGHLY 68%.

WE RECEIVED A SIMILAR TO ALL THREE OF OUR BENCHMARKING DATA SETS.

SO THESE FOUR THAT YOU SEE LISTED HERE IS WHERE WE HAD HIGHER OR MUCH HIGHER THAN OUR DATA SETS.

OUR BENCHMARKING DATA SETS THE VERY BOTTOM ONE.

THE NUMBER OF RESPONDENTS WHO USED BUS, RAIL, SUBWAY OR OTHER PUBLIC TRANSPORTATION INSTEAD OF DRIVING.

WE RECEIVED HIGHER OR MUCH HIGHER THAN ALL THREE OF OUR BENCHMARKING DATA SETS.

AND THEN THE TOP THREE YOU'LL SEE NOTATED TO THE VERY RIGHT, THE DATA SYMBOL OR THE MONEY SYMBOL ON ATTRACTING PEOPLE FROM DIVERSE BACKGROUNDS.

OUR MEDIAN INCOME DATA SET, THAT'S WHERE WE RATED HIGHER THERE.

AND THEN THE BUS OR TRANSIT SERVICES AND EASE OF TRAVEL BY PUBLIC TRANSPORTATION, THOSE WE RATED MUCH HIGHER FOR TEXAS BENCHMARKING DATA SET.

BUT WE ALSO HAD A LOT OF OTHER HIGH POINTS.

I WENT THROUGH AND TOOK ANYTHING THAT RATED HIGHER THAN A 70%, AND THAT'S WHAT I'VE LISTED HERE, 70% QUALITY THAT OUR RESIDENTS RESPONDED.

SO OUR FIRE SERVICES RATED THE HIGHEST OF OF ALL THAT WAS SURVEYED AND THAT WAS 82% POSITIVE.

[00:15:03]

SO PERCENT POSITIVE MEANS THAT THEY RATED IT EITHER EXCELLENT OR GOOD.

SO THAT'S WHAT THESE ARE 82% RATED AT EITHER EXCELLENT OR GOOD.

AND THEN OF COURSE OUR RESPONDENTS, THE NUMBER OF RESPONDENTS THAT FEEL SAFE IN GARLAND'S DOWNTOWN COMMERCIAL AREA, 79% THAT THEY FEEL SAFE IN THEIR NEIGHBORHOOD DURING THE DAY.

78%. SOMETHING TO NOTE THERE IS THAT EVEN THOUGH 78%, WHICH WE ALL THINK IS PRETTY GOOD, IT'S STILL RATED LOWER IN BENCHMARKING DATA SETS COMPARED TO NATIONAL AND TEXAS.

SO EVEN THOUGH IT'S A GOOD SCORE, IT STILL COULD RATE LESS THAN BENCHMARKING.

JUST SOMETHING TO NOTE AS YOU GO THROUGH RESULTS.

AND WE'VE ALSO SEEN SOME OTHER HIGH POINTS REMAINING PEOPLE THAT WILL PLAN TO REMAIN IN GARLAND FOR THE NEXT FIVE YEARS 78%.

OUR GARBAGE COLLECTION, LIBRARY SERVICES 74 AND 75%.

AND THEN SEWER SERVICES, 71 YARD WASTE PICKUP 71.

SO LOTS OF AREAS OF POSITIVITY.

BUT I DID START TALKING ABOUT LOWER BENCHMARKING DATA.

WE HAD 11.

WE HAD 41 QUESTIONS OUT OF THE 141, ROUGHLY 29% THAT RATED LOWER THAN AT LEAST ONE OF OUR BENCHMARKING DATA SETS.

11 OF THE QUESTIONS RATED LOWER THAN THE BENCHMARKING DATA SETS IN ALL THREE AREAS, AND THOSE ARE THE ONES THAT YOU SEE LISTED HERE.

SO THESE ARE THE 11 THAT RATED LOWER THAN ALL THREE BENCHMARKING DATA SETS.

SO YOU'LL SEE UP AT THE TOP OVERALL QUALITY OF NATURAL ENVIRONMENT IN GARLAND 56% THAT RATED LOWER AND THEN DOWN TO OUR STREET REPAIR WHICH GOT A 27% EXCELLENT OR GOOD RATING.

AND AGAIN, THOSE THESE HAVE ALL RATED LOWER THAN ALL THREE BENCHMARKING DATA SETS.

SO NO, THERE'S A LOT OF DATA.

WE ONLY TOUCHED THE SURFACE BECAUSE YOU ALL SAW THERE WAS A 25 TABS ON THAT REPORT.

HOW DO YOU USE IT TO MOVE FORWARD AND, YOU KNOW, GO THROUGH DECISION MAKING AND PRIORITIES AND ALL OF THAT.

AND HERE IS ONE GRAPH THAT IN EACH AREA YOU'LL REMEMBER WE TALKED ABOUT FACETS OF LIVABILITY.

AND THERE WERE TEN FACETS.

ALL OF THOSE QUESTIONS WERE SECTIONED INTO THOSE AREAS.

AND WITHIN THOSE QUESTIONS THEY ASKED ONE AN OVERALL QUALITY HOW RESIDENTS RATED THE OVERALL QUALITY, AND THEN TWO, HOW IMPORTANT DO RESIDENTS THINK THAT IT IS FOR THE CITY TO FOCUS ON THOSE AREAS OVER THE NEXT TWO YEARS? SO THIS CHART IS WHAT THEY CALL THE GAP ANALYSIS, AND IT SHOWS THE GAP IN BETWEEN HOW IMPORTANT RESIDENTS RATED SOMETHING AND THEN THE QUALITY THAT THEY RATED IT. SO YOU'LL SEE ON THE LEFT, I DIDN'T WANT YOU TO ACTUALLY HAVE TO CALCULATE IT.

SO I WENT AHEAD AND PUT THE GAP PERCENTAGES ON THE LEFT.

AND I KNOW THEY'RE NOT IN ASCENDING OR DESCENDING ORDER.

SO I ALSO THEN CREATED THIS CHART WHICH HELPS YOU DO THAT.

SO THESE ARE THE ACTUAL QUESTIONS THAT THEY USED FOR THE OVERALL QUALITY RATING AND THE IMPORTANCE RATING.

AND THEN YOU'LL SEE THE GAP PERCENTAGE TO THE LEFT OR TO THE RIGHT.

AND IT'S IN DESCENDING ORDER.

SO MOBILITY WAS OUR AREA OUR FACET OF LIVABILITY THAT HAD THE BIGGEST GAP AT 36%.

AND ONE THING TO NOTE ABOUT THAT IS THAT THAT WAS OUR BIGGEST GAP, BUT IT ALSO HAD BOTH HIGH AND LOW BENCHMARKING DATA.

SO THREE OF THE FOUR AREAS WHERE WE RATED HIGHER IN ONE OR MORE BENCHMARKING DATA IS THAT THAT QUESTION THAT SAID THAT THEY'VE USED BUS, RAIL AND ALL THOSE THINGS, AND WE RATED HIGHER IN ALL THREE DATA SETS.

THAT'S PART OF MOBILITY.

BUT THEN OUR STREET REPAIR WHERE WE RATED THE LOWEST IN QUALITY, WAS PART OF MOBILITY AS WELL.

SO AGAIN, THERE'S HIGH AND LOW POINTS FOR ALL OF IT.

BUT THAT WAS THE ONE AREA THAT HAD THE BIGGEST GAP.

IT WAS ALSO THE ONE AREA WHEN I AVERAGED OUT QUALITY AND I AVERAGED OUT IMPORTANCE, IT RATED BELOW THE AVERAGE IN QUALITY, ABOVE THE AVERAGE IN IMPORTANCE.

SO IF YOU'RE DOING KIND OF A MATRIX, IT'S IN THE THE BOTTOM RIGHT HAND QUADRANT.

AND THEN OUR SECOND ONE WAS UTILITIES THAT HAD THE NEXT GREATEST GAP AT 35%.

AGAIN, IT HAD SOME HIGH POINTS IN THAT SANITATION RATED OVER 70%.

SEWER RATED OVER 70%.

BUT THEN UTILITY BILLING WAS AT 47%, WHICH WAS LOWER THAN OUR BENCHMARKING IN ALL THREE DATA SETS.

SO AGAIN, HIGHS AND LOWS.

ONE OTHER THING I WANTED TO MENTION WITH THAT IS WITH UTILITY BILLING.

I MENTIONED THAT IT WAS AT 47%.

THAT IS FOR OUR RANDOM SAMPLE SURVEY RESULTS.

[00:20:01]

BUT YOU STILL HAVE ALL OF THE OPEN PARTICIPATION DATA THAT YOU CAN COMPARE, WHICH I DID.

AND FOR ALL OF THE OPEN PARTICIPATION QUESTIONS, THEY ARE WITHIN ABOUT PLUS OR MINUS UP TO TEN POINTS OF WHAT EACH OF THE CATEGORIES FOR THE RANDOM SAMPLE WERE.

WHY I WANTED TO CALL THAT OUT HERE WITH THE UTILITY BILLING WAS THAT WE RATED 47 WITH RANDOM SAMPLE.

WE RATED 55 WITH OPEN PARTICIPATION.

SO JUST THROWING THAT OUT THERE AGAIN, TO BE ABLE TO POINT OUT THAT THERE WAS SOME SLIGHT DIFFERENCES BETWEEN THE TWO.

THEN THE LAST THING I WANTED TO LEAVE YOU WITH WAS THIS QUESTION.

RESPONDENTS WERE ASKED, OVERALL, HOW WOULD YOU RATE THE QUALITY OF THE SERVICES PROVIDED BY THE CITY OF GARLAND 64% IN THE RANDOM SAMPLE AND 65% IN THE OPEN PARTICIPATION SAID THAT THEY WOULD RATE IT EXCELLENT OR GOOD.

SO OF COURSE, WHILE WE STILL HAVE WORK TO DO, THE MAJORITY OF OUR RESIDENTS THINK THAT WE HAVE EXCELLENT OR GOOD QUALITY OF SERVICES IN THE CITY OF GARLAND.

ARE THERE ANY QUESTIONS? VERY GOOD. ANY QUESTIONS ON THIS TOPIC? THIS ITEM. COUNCILMEMBER WILLIAMS, THANK YOU.

THANK YOU. MAYOR. THANK YOU.

THANK YOU, MA'AM, FOR THE THANK YOU FOR THE PRESENTATION.

JUST A COUPLE OF QUESTIONS FOR YOU.

THE RESPONSE RATE, I DON'T REMEMBER WHAT IS THE ACCORDING TO THE CONSULTANTS I KNOW, USUALLY IT'S IT'S LOW GENERALLY.

CAN YOU SHARE WHAT IS THE NORM IF THERE IS ONE FOR RESPONSES? THEY TOLD ME 6 TO 8% WAS A GOOD RESPONSE RATE, 6 TO 8% WAS A GOOD RESPONSE RATE IS WHAT THEY TOLD ME ON THAT RANDOM SAMPLE.

SO WE'RE ABOVE THAT, THAT WE'RE WITHIN THAT.

YES, WE WERE 7% WITHIN THAT RANGE.

OKAY. MY SECOND QUESTION IS OF THE 6500 SURVEYS THAT WE SENT OUT, DO WE HAVE INDICATION OF THE COVERAGE AREAS FOR OUR CITY ZIP CODES? YES. SO THEY WERE ABLE TO THEY BROKE IT DOWN BY ALL DISTRICTS.

AND THEY HAD ONE OF THE QUESTIONS ON THE SURVEY THAT ASKED WHICH DISTRICT YOU WERE IN.

AND SO THEY DID HAVE COVERAGE OF ALL THE DISTRICTS.

AND I BELIEVE THAT'S IN ONE OF THE DATA POINTS I CAN GET THAT I DIDN'T DIDN'T PRINT OFF THAT PART.

I HAVE MY NOTES UP HERE THAT I PRINTED OFF SEVERAL OTHER AREAS, BUT I DID NOT PRINT OFF THAT AREA.

BUT THEY DO HAVE THAT LISTED AND I CAN FIND THAT FOR YOU.

OKAY. AND LASTLY, WOULD YOU GO BACK TO THE SLIDE WHERE YOU'VE GOT THE LISTING THE OVERALL THAT ONE? A QUESTION NOW ON UTILITIES.

IT'S NOT THE TERMS NOT USED ON THE SLIDES, BUT YOU REFER TO UTILITY BILLING.

SO IS THAT QUESTION DIRECT? IS IT RELATED TO UTILITY SERVICES OR UTILITY BILLING.

SO THIS OVERALL QUALITY OF UTILITY INFRASTRUCTURE WAS THE OVERARCHING QUESTION FOR THAT SECTION.

SO THEY HAD UTILITIES AS A SECTION.

AND THAT WAS HOW WOULD YOU RATE THE OVERALL QUALITY OF UTILITY INFRASTRUCTURE, AND HOW WOULD YOU RATE THE IMPORTANCE OF FOCUSING ON UTILITY INFRASTRUCTURE OVER THE NEXT TWO YEARS? BUT WITHIN THAT SECTION, THEY ALSO HAD SEVERAL FOLLOW UP QUESTIONS.

THEY WERE ASKING HOW WOULD YOU RATE THE QUALITY OF GARBAGE COLLECTION? HOW WOULD YOU RATE THE QUALITY OF SEWER SERVICES? AND THEN ONE WAS, HOW WOULD YOU RATE THE QUALITY OF UTILITY BILLING SO THAT ONE, THAT PART WAS STRICTLY TO UTILITY BILLING, BUT IT WAS WITHIN THIS OVERARCHING UTILITY SECTION.

SO THE CHART THAT WE'RE LOOKING AT NOW, WHICH IS 35%, INCLUDES UTILITY INFRASTRUCTURE AND BILLING AND SEWER SERVICES AND GARBAGE COLLECTION. AND IT INCLUDES MORE THAN JUST UTILITY INFRASTRUCTURE.

YES. THAT'S WHY I WAS KIND OF TRYING TO POINT THAT OUT.

IS THAT THE QUESTION THAT THEY ASKED TO RATE THE OVERALL QUALITY WAS RATING, OVERALL QUALITY OF THE UTILITY INFRASTRUCTURE, BUT THEN FOLLOW UP QUESTIONS WITHIN THAT SECTION.

YOU GET TO THAT SECTION AND I CAN TELL YOU THE DIFFERENT QUESTIONS.

SO THEY SAY, YOU KNOW, PLEASE RATE EACH OF THE FOLLOWING CHARACTERISTICS AS THEY RELATE TO GARLAND AS A WHOLE.

AND THAT WAS THIS OVERARCHING ONE.

OVERALL QUALITY OF THE UTILITY INFRASTRUCTURE WATER, SEWER, STORM WATER, ELECTRIC, GAS, BROADBAND, ETC.

BUT THEN YOU GOT THE OPPORTUNITY TO GO INTO EACH ONE.

HOW WOULD YOU RATE AFFORDABLE HIGH SPEED INTERNET ACCESS? HOW WOULD YOU RATE GARBAGE COLLECTION? HOW WOULD YOU RATE DRINKING WATER, SEWER SERVICES, STORMWATER MANAGEMENT, POWER UTILITY BILLING? AND THEN THEY ASKED ABOUT THE IMPORTANCE PLEASE RATE HOW IMPORTANT, IF AT ALL, YOU THINK IT IS FOR GARLAND COMMUNITY TO FOCUS ON EACH OF THE FOLLOWING IN THE COMING TWO YEARS, AND

[00:25:01]

OKAY. THANK YOU. THANK YOU MAYOR.

YOU'RE WELCOME. DEPUTY MAYOR PRO TEM.

LOOK I WOULD LIKE A COPY OF THAT PAGE THAT YOU HAVE THAT SHOWS ALL OF THE QUESTIONS THAT ARE RELATED TO EACH ONE OF THOSE CATEGORIES.

PLEASE. I ACTUALLY HAVE THE A COPY OF THE PRINTED SURVEY THAT I CAN GET FOR YOU.

GREAT. THANK YOU. IT'S IN MY OFFICE.

WONDERFUL. OKAY.

THANK YOU. MAYOR PRO TEM MOORE.

THANK YOU, MR. MAYOR.

TIFFANY, YOU GUYS HAVE DONE AN OUTSTANDING JOB ON GIVING US INFORMATION THAT I GET TO A CERTAIN EXTENT.

I THINK THAT AS A COUNCIL PERSON, I PROBABLY THINK THAT WE WERE MUCH BETTER THAN WHAT I'M SEEING IN SOME OF THESE NUMBERS HERE.

CAN YOU GO BACK TO THE PAGE THERE WHERE YOU HAVE THAT 78% FEEL SAFE IN YOUR NEIGHBORHOOD DURING THE DAY? I THINK THAT ONE OF THE MOST IMPORTANT THINGS THAT WE AS A COUNCIL HAVE TO ADDRESS IS PUBLIC SAFETY.

CAN YOU SPEAK MORE TO WHAT? THAT IS NOT. DON'T GET ME WRONG EITHER, BECAUSE I, I TOOK A NOTE HERE THAT SAYS THAT OVERALL, THIS STUDY SAYS THAT WE'RE EXCELLENT OR GOOD, AND THAT'S GREAT.

IT'S JUST THAT THE NUMBERS DON'T SEEM TO BE KIND OF BEARING THAT OUT.

SO COULD YOU SPEAK MORE TO THIS AREA OF FEEL SAFE IN YOUR NEIGHBORHOOD DURING THE DAY? 78% IN THE GRAY? YES. AND SO THIS IS ONE OF THE QUESTIONS THAT I WANT TO BRING UP.

I HAD PEOPLE CALL DURING WHILE THE SURVEY WAS BEING ADMINISTERED.

I HAD PEOPLE CALL AND ASK QUESTIONS.

AND THEN ONE OF THE THINGS THAT I HEARD A COUPLE TIMES WAS, I REALLY WISH THERE WAS A WAY TO LEAVE FEEDBACK OR QUALIFY MY RATING ON SOMETHING BECAUSE AND MAYBE, YOU KNOW, THAT UTILITY INFRASTRUCTURE, THEY MAY NOT UNDERSTAND REALLY WHAT UTILITY INFRASTRUCTURE MEANS TO ONE PERSON IS NOT THE SAME TO THE NEXT PERSON, OR YOU KNOW WHAT NATURAL ENVIRONMENT MEANS, WHAT PEOPLE CONNOTATE IS THOSE THINGS AND HOW THEY RATE SOMETHING COULD BE VERY DIFFERENT.

AND IF THEY AREN'T ABLE TO QUALIFY IT, OR IF THERE'S NOT MORE EXPLANATION THAT COULD AFFECT HOW YOU'RE RATED.

BUT IN REGARD TO THE SAFETY ITSELF, AGAIN, I CAN BRING UP THAT SECTION.

THAT IS ALL THEY ASKED IN THAT QUESTION.

BUT SO AT THEIR THEIR OVERARCHING QUALITY QUESTION, WHERE THEY SAY, PLEASE RATE EACH OF THE FOLLOWING CHARACTERISTICS AS THEY RATE TO GARLAND AS A WHOLE. SO THAT'S YOUR OVERALL FEELING OF SAFETY.

SO OUR OVERALL FEELING OF SAFETY RATED AT A 53%, WHICH WAS LOWER THAN THE NATIONAL AND THE TEXAS BENCHMARK, BUT NOT LOWER THAN OUR MEDIAN HOUSEHOLD INCOME LESS THAN 100% BENCHMARKING DATA SET.

BUT THAT WAS AT 53%.

AND THEN THEY WENT IN TO WHERE YOU CAN DO THINGS MORE TARGETED.

AND THEY SAID, PLEASE RATE HOW SAFE OR UNSAFE YOU FEEL IN YOUR NEIGHBORHOOD DURING THE DAY.

THAT WAS 78%.

THEN IN GARLAND'S DOWNTOWN COMMERCIAL AREAS DURING THE DAY, 79%.

HOW SAFE YOU FEEL FROM PROPERTY CRIME WAS 60% FROM VIOLENT CRIME, 66.

FROM FIRE, FLOOD OR OTHER NATURAL DISASTER, 75%.

AND THEN THEY WERE ASKED TO RATE THE QUALITY OF POLICE SERVICES, CRIME PREVENTION AND EDUCATION SERVICES, ANIMAL SERVICES, AMBULANCE OR EMERGENCY MEDICAL SERVICES, FIRE SERVICES, FIRE PREVENTION AND EDUCATION, AND THEN EMERGENCY PREPAREDNESS.

AND THEN THEY DID THE THE IMPORTANCE QUESTION.

SO PLEASE RATE HOW IMPORTANT YOU THINK.

AND PEOPLE RATED THAT AN 87%.

SO THAT SECTION WAS KIND OF ALL OVER THE BOARD.

BUT THOSE THE FIRE SERVICES AT 82%.

THE FEELING SAFE IN GARLAND DOWNTOWN COMMERCIAL AREAS AT 79%.

FEELING SAFE IN THE NEIGHBORHOOD DURING THE DAY AT 78.

I MEAN, THOSE WERE THE HIGHEST IN THOSE AREAS.

BUT THE REASON I WANTED TO BRING THAT UP IS BECAUSE WE'RE STILL LOWER THAN THOSE BENCHMARKS WITH STILL GOOD DATA.

SO TO YOUR POINT, WE'RE DOING A GOOD JOB.

BUT SOMETIMES IT'S IF YOU'RE JUST PAYING ATTENTION TO THE BENCHMARKING, IT MAY NOT LOOK LIKE THAT, BUT WE HAVE TO BASE IT OFF OF WHAT OUR COMMUNITY IS SAYING.

OKAY, I THINK I GOT IT THEN.

SO WHEN YOU ASK A QUESTION, IT'S LIKE GOING TO A CANDY STORE.

I MEAN, YOU WALK INTO THE CANDY STORE, IT'S OVERWHELMING.

IT'S CANDY ALL OVER THE PLACE.

WHEN YOU'RE ASKED A QUESTION, IT'S SO OVERWHELMING THAT YOU HAVE A SENSE OF NOT FEELING SAFE.

BUT WHEN YOU HIT THE INDEPENDENT OR INDIVIDUAL QUESTIONS, YOU'RE GETTING A MUCH BETTER RATING AS IT RELATES TO HOW THE PEOPLE ARE FEELING.

SO OKAY, BECAUSE FOR ME, I REALLY DO FEEL THAT WE DO A VERY GOOD JOB.

OUR POLICE DEPARTMENT, OUR FIRE DEPARTMENT DO A VERY GOOD JOB IN THE WAY OF KEEPING US SAFE, BUT I UNDERSTAND IT A LOT BETTER.

THANK YOU SO VERY MUCH.

THANK YOU, MR. MAYOR. VERY GOOD.

ANY ADDITIONAL QUESTIONS ON THIS SECTION?

[00:30:03]

[5. City of Garland Mission/Vision Discussion - City Manager Jud Rex and Mzee Dillon, CEO Dillon Morgan Consulting, Inc.]

AND THANK YOU, TIFFANY.

THANK YOU. AND COUNCIL, I'VE ENJOYED GOING THROUGH THE DASHBOARD.

SO WE SENT YOU A LINK TO THE FULL SURVEY DASHBOARD AND IT WILL.

IT GIVES YOU A BREAKDOWN OF ALL THE BENCHMARKS, ALL THE DATA THAT'S THERE.

AND REALLY YOU CAN GET INTO EVERY QUESTION AND SEE WHERE SEE WHERE WE RATED THERE.

SO GO IN AND PLAY AROUND WITH THAT.

IT'S BEEN IT'S BEEN INTERESTING AND FUN TO LEARN FROM THAT.

SO WANT TO PIVOT NOW TO OUR OUR MISSION AND VISION.

AND AGAIN, WANTED TO THANK THE COUNCIL FOR TAKING TIME TO FILL OUT THE SURVEY THAT WE SENT TO DISCUSS OUR MISSION AND VISION.

AND SO WE WANT TO GO OVER THE RESULTS WITH YOU AND WANT TO INTRODUCE AGAIN, MR DYLAN WITH DYLAN MORGAN CONSULTING.

THEY'VE BEEN A VITAL PARTNER WITH THE CITY, NOT JUST ON THIS EFFORT, BUT ON OUR DEVELOPMENT REVIEW PROCESS AND AGENDA CREATION PROCESS.

THEY ARE PROCESS EXPERTS AND HAVE DONE A LOT OF GOOD WORK FOR THE CITY AND INTO THAT REGARD, ACTUALLY, OUR CITY MANAGERS MEETING ON THURSDAY, WE WERE TALKING ABOUT PROCESS IMPROVEMENT.

AND AS A RESULT OF HAVING THIS DISCUSSION AND GETTING INPUT FROM COUNCIL ON THE MISSION AND VISION, THE QUESTION WAS THROWN OUT AT THE TIME, AND I'M USING THIS AS AN EXAMPLE OF HOW THIS PROCESS SORT OF HELPS GIVE GUIDANCE AND CHANGE THE CONVERSATIONS THAT WE HAVE AT THE MANAGEMENT LEVEL.

THE QUESTION CAME UP, WHAT DID WE LEARN FROM THE INPUT ON THE COUNCIL SURVEY THAT CAN GUIDE OUR EFFORTS? AND SO WHILE THAT, YOU KNOW, YOU PROBABLY SPENT 15, 20, 30 MINUTES ON THE SURVEY, THE RESULTS HAVE REALLY HELPED CHANGE THE CONVERSATION AND FOCUS OUR EFFORTS REALLY THROUGHOUT THE ORGANIZATION.

AND THAT'S THE GOAL OF THAT.

I MENTION OFTEN THAT SOMETIMES THE PROCESS IS AS IMPORTANT AS THE OUTCOME, AND THAT'S CERTAINLY THE CASE WITH THIS.

WE'RE EXCITED TO SHARE THE RESULTS OF THIS.

WE DON'T EXPECT NECESSARILY TO HAVE A COMPLETE MISSION AND VISION COME OUT OF THIS WORKSHOP TODAY.

WE PROVIDED SOME OPTIONS AND MR IS GOING TO GO OVER THOSE WITH YOU.

YOU CAN KIND OF MIX AND MATCH AND GIVE SOME DIRECTION ON THOSE.

THE PLAN WOULD BE FOR US TO COME BACK TO YOU LATER WITH A FINAL VERSION FOR YOUR APPROVAL, AND THEN ONCE APPROVED, THIS IS NOT GOING TO JUST BE SOMETHING THAT SITS ON THE SHELF. THE CITY'S MISSION, THE CITY'S VISION REALLY HAS AN IMPACT ON ON EVERYTHING THAT WE DO AND BECOMES A RALLY CRY, AS IT WERE, FOR FOR OUR EFFORTS MOVING FORWARD.

THE MISSION AND VISION STATEMENT PROVIDES CONTEXT AROUND ALL THE CONVERSATIONS THAT HAPPEN AT THE CITY, AND I, FOR ONE, AM EXCITED TO HAVE HAVE IT AS SOMETHING THAT IS IN THE FORE, IS IN THE FRONT OF MY HEAD ALL THE TIME WHEN WE'RE WHEN WE'RE GOING ABOUT THE WORK THAT WE DO.

SO WITH THAT, I'LL TURN IT OVER TO MR AND TALK ABOUT OUR MISSION AND VISION AND THE SURVEY RESULTS.

THANKS, JUDD. THANK YOU.

JUDD AGAIN. AND MAYOR AND COUNCIL FOR THE OPPORTUNITY TO COME IN AND FACILITATE A SHORT DISCUSSION WITH YOU ON THE MISSION AND VISION STATEMENT.

MR. AND JUST WANT TO START WITH JUST A BRIEF AGENDA OF HOW WE'LL FLOW THROUGH THIS.

THIS IS KIND OF KIND OF A WORKSHOP.

BUT WE HAVE A LOT OF INPUT.

SO WE'VE ALREADY GATHERED.

SO IT'LL BE IT'LL BE A VERY CONDENSED WORKSHOP AS MUCH AS POSSIBLE.

SO I'D LIKE US TO REVIEW THE RESULTS.

ALL THE ALL THE FEEDBACK THAT YOU GAVE IT WAS YOU HAD AMAZING COMMENTS AND LOTS OF FEEDBACK THROUGH THE SURVEY.

BUT THEN WE WOULD LIKE TO ASK YOU, YOU HAVE A WORKBOOK? THAT'S RIGHT IN FRONT OF YOU.

SO THE THREE OPTIONS FOR THE MISSION AND THE VISION ARE IN, IN THE WORKBOOK AS WELL.

BUT ALSO THERE IS A PORTION YOU WILL SEE BENEATH THE OPTIONS WHERE YOU MAY KIND OF SCRIBBLE SOME NOTES.

YOU'RE LIKE, WELL, I HATE THIS OPTION.

OR YOU KNOW WHAT, HERE'S WHAT I WANT TO WHAT I'D LIKE TO ADD TO THIS OPTION OR CHANGE TO IT.

BUT THAT WOULD THAT WOULD ALLOW US WHEN WE GET WHEN WE GET TOWARDS THE END OF THE SESSION WHERE YOU WOULD HAVE SOMETHING WRITTEN IN RELATION TO THE PARTICULAR OPTIONS, THAT WE CAN KIND OF BRING THAT TO A CLOSE IF POSSIBLE, AS MUCH AS POSSIBLE AGAIN.

THEN, AS JUDD MENTIONED, WE'LL TAKE YOUR FEEDBACK AND SHARE SOMETHING BACK WITH YOU AT A LATER TIME.

THANK YOU. SO OVERALL.

WE STARTED WITH THE QUESTION FOCUSING ON WHY DO WE DO WHAT WE DO? AND THE QUESTION STARTED, WHICH OF THE FOLLOWING BEST DESCRIBES WHY WE DO WHAT WE DO? THIS IS BACK ON THE PREVIOUS OR THE CURRENT MISSION STATEMENT RIGHT NOW.

AND WE JUST REALLY CAME UP TO BENEFIT CITIZENS, BUSINESSES AND FUTURE GENERATIONS.

[00:35:06]

IT WAS QUITE INCLUSIVE THAT WE WANTED TO LOOK AT.

MOORE WANTED TO COVER AS MANY AS MANY AS POSSIBLE, BUT THAT WAS FOLLOWED BY SO WE CAN LEAVE A VIBRANT AND INCLUSIVE COMMUNITY FOR FUTURE GENERATIONS.

WE'RE SEEING A THEME THERE ON BOTH OF THESE.

IF WE CAN KIND OF GO TO THE NEXT QUESTION HERE, WE ASKED, ARE THERE ANY OTHER WORDS THAT BETTER REPRESENT OUR PURPOSE, WHY WE DO WHAT WE DO? AND WE HEARD HERE THRIVE, IMPROVE FORWARD FOR THE CITY AND THE RESIDENTS TO BE HEALTHY AND PRODUCTIVE, FOR ECONOMIC DEVELOPMENT, TO GIVE BACK TO OUR GREAT PEOPLE AND CITY THAT BLESSED ME WITH A UNIQUE OPPORTUNITY TO SERVE AS A SERVANT LEADER, TO FOSTER, ENCOURAGE, SUPPORT, VALUES, OPPORTUNITY, STRENGTH AND SERVICE.

SO AS WE'RE GOING, AS WE'RE GOING THROUGH THIS, WE'RE PICKING UP THEMES THROUGH, YOUR INPUT, AND WE'LL SHOW YOU WHY WE COVER THAT.

AND SO WE ASKED FOR THE MISSION.

HOW DO WE WANT TO IDENTIFY OURSELVES? IS IT WE. AND SO NOW WE HAVE WE AND WE HAVE TEAM GARLAND.

SO THEY'RE BOTH PRETTY, PRETTY HIGH UP THERE.

AND AS WE DISCUSS FURTHER, WE'LL WE'LL GET YOUR INPUTS AND HOW YOU WOULD LIKE TO PRESENT YOURSELVES AND WAS SAYING, WHO IS COMMITTING TO THIS MISSION? IS IT WE COLLECTIVELY OR WE AS A TEAM? GARLAND AND THEN WE SAID, WHICH WORDS RESONATE MOST WITH YOU WHEN REFERRING TO GARLAND AND COULD BE INCLUDED AS PART OF THE CITY'S MISSION STATEMENT? AND AGAIN, WE REALLY WANT TO HIGHLIGHT THE TOP THINGS THAT YOU BROUGHT, THAT YOU BROUGHT TO THE ATTENTION.

AND NUMBER ONE WAS COMMUNITY THAT THAT THAT GOT THE HIGHEST THE HIGHEST POINTS.

RIGHT. HEY, COMMUNITY REALLY STANDS OUT FOR US.

AND THEN TO ECONOMIC THAT THAT WAS NEXT.

AND THEN WE SAID, YOU KNOW, INCLUSIVE WAS ALSO A BIG DEAL FOR US.

SERVICE AND TRUST.

SO THESE ARE, THESE ARE THE TOP FIVE THEMES THAT ARE COMING UP.

AND IF YOU SEE TRUST IS COMING UP MORE AND MORE AND SERVICES REALLY ALSO STANDING OUT THROUGH THIS AND WE SAY, WELL, ARE THERE ANY OTHER WORDS THAT RESONATE WELL WITH YOU IN REFERRING TO GARLAND? FOR WHAT WE DO AND WE, WE, WE START SEEING GENERATIONAL HOME, FAMILY, RESILIENT, STRONG, HOPEFUL, HONEST, COOPERATIVE, ENCOURAGING ENCOURAGING ENERGETIC DIVERSITY.

EFFECTIVE GOVERNANCE.

SMALL TOWN FEELING.

NEIGHBORS HELPING NEIGHBORS.

SLEEPING. GIANT.

POTENTIAL. REDEVELOPMENT.

FRIENDLY. MULTICULTURAL.

OLD SCHOOL COUNTRY NEIGHBORLY.

SO THESE ARE THESE AGAIN THEIR INPUTS TO HELP US UNDERSTAND AS WE'RE CRAFTING THE MISSION WHAT WE DO.

AND THEN WE'LL GO TO THE NEXT QUESTION.

WE SAID, WHO DOES THE CITY'S MISSION SERVE? WHO'S THE TARGET? WHO? WHO BENEFITS? WHO'S THE TARGET FOR THIS MISSION? AND WE'RE SEEING WHAT'S COME UP.

WE WANT TO COVER ALL RESIDENTS, VISITORS AND BUSINESSES.

THAT'S THAT'S WHAT WHAT WAS RANKED AT THE TOP.

WE COULD HAVE SAID SECOND RESIDENTS, STAKEHOLDERS, BUT EVERYONE WENT UP TO RESIDENTS, VISITORS AND BUSINESSES.

AND THEN WE SAID AGAIN, ARE THERE ANY OTHER WORDS THAT BETTER REPRESENT WHO WE'RE SERVING? THROUGH THE CITY'S MISSION? SO THE RESPONSES HERE WERE EVERYONE WHO COMES TO GARLAND VISITORS, SHOPPERS, FAMILY OF RESIDENTS, EMPLOYEES AND BUSINESS OWNERS, TAXPAYERS, PEOPLE WHO WORK, PLAY AND LIVE IN GARLAND BUSINESSES, EMPLOYERS.

AND THEN WE HAVE INTERGENERATIONAL PAST, PRESENT AND FUTURE.

AND THEN WE WANTED TO KNOW, HOW WOULD YOU LIKE THIS MISSION STATEMENT? SUPER LONG ELABORATE MULTI MULTIPLE SENTENCES.

AND THE FEEDBACK HERE WAS MINIMALISTIC.

1 OR 2 SENTENCES, ONE SHORT ONE TO KEEP IT BROAD.

COMMON LANGUAGE. WANT PEOPLE EVER WANT TO BE ABLE TO PICK IT UP AND UNDERSTAND IT? AND SO WE WENT BACK THEN TO FROM THE CURRENT MISSION STATEMENT WHAT DO YOU WANT TO IN IN RELEVANCE FOR THE FUTURE, HOW WOULD YOU RANK THESE WHAT WE DO THAT WE'VE MENTIONED IN THE TIMES IN THE CURRENT MISSION STATEMENT, WHICH HE PRESERVED, PUBLIC TRUST CAME UP HIGHEST.

THAT WAS SOMETHING THAT ACTUALLY WAS PRETTY SIGNIFICANTLY HIGHER.

AND WE HAVE PROTECT OUR COMMUNITY, DELIVER QUALITY SERVICES AND ENHANCE THE QUALITY OF LIFE AND PROMOTE ECONOMIC GROWTH.

[00:40:02]

WE'RE JUST ASKED FOR HOW WOULD YOU RANK WHICH ONES YOU'D WANT TO KEEP IN THE NEW.

AS YOU CRAFT A NEW MISSION STATEMENT, WHICH OF THE FOLLOWING APPEALS TO YOU MOST FROM A STYLE PERSPECTIVE? WE ASKED YOU REALLY THE LAST QUESTION AGAIN, JUST WANTED TO KNOW OKAY, WHAT IF WE GAVE YOU A LONGER SENTENCE FOR A MISSION AND THE ANSWER WAS STILL THERE? DEDICATED TO ENHANCING THE QUALITY OF LIFE IN GARLAND IS MUCH SHORTER THAN FOSTER A SAFE, VIBRANT, LIVABLE, AND INCLUSIVE COMMUNITY THROUGH EFFECTIVE STEWARDSHIP AND QUALITY PUBLIC SERVICES.

SO WE KIND OF LENGTHENED IT OUT A LITTLE BIT AND SEE, YOU KNOW, IF, YOU KNOW, IF YOU GO, HEY, I WANT TO.

BUT NO, THE THE ANSWER IS SIMPLE, RIGHT? KEEP IT SHORT, KEEP IT CLEAR.

AND THEN SO WE MOVED OVER NOW TO A VISION STATEMENT.

AND WE SAID WHICH PHRASES BELOW FROM THE CURRENT VISION STATEMENT, FROM YOUR PERSPECTIVE, FROM YOUR PERSPECTIVE, RANKED THEM IN ORDER OF RELEVANCE FOR THE FUTURE.

AND WE HAVE FIRST COMING UP IS TO BE A PROGRESSIVE CITY, ECONOMIC, CULTURAL, SOCIAL, ENVIRONMENTAL.

BUT TO BE A PROGRESSIVE CITY IS AN ECONOMIC ARE KIND OF THERE AT THE TOP.

AND THEN WE SAID, HOW, HOW LONG, HOW LONG AWAY, HOW FAR? SHOULD WE LOOK AS WE'RE KIND OF CRAFTING THIS? AND THE ANSWER WAS, LET'S LOOK AROUND TEN YEARS.

THAT'S WHERE EVERYONE KIND OF CAME TOGETHER ON.

AND SO WE SAID, OKAY, SO, YOU KNOW, BASED ON THE TEN YEARS NOW OR BASED ON YOUR THOUGHT ON WHAT WE'RE LOOKING AT WHAT ARE YOUR HOPES? AND HERE WE WANTED TO SEE WHAT WHAT WE WERE ASPIRING TO.

AND WE SEE HERE PROVIDE OPPORTUNITIES FOR MY KIDS TO GROW UP IN A SAFE ENVIRONMENT WITH EDUCATIONAL, RECREATIONAL AND EMPLOYMENT OPPORTUNITIES, ACHIEVE THE GOALS SET FORTH IN THE VISION STATEMENT, AND ATTAIN GOALS REQUIRE REEXAMINATION OF THE IMPLEMENTED PROCESSES THAT RESIDENTS BECOME PROUD TO SAY THEY ARE FROM GARLAND TO BE A PLACE EVERYONE IS PROUD AND EXCITED TO CALL HOME A SAFE, FUN AND ENGAGING COMMUNITY. GARLAND WILL PROMOTE UNIQUE AND INNOVATIVE ECONOMIC DEVELOPMENT AND REDEVELOPMENT THAT SETS US APART FROM OTHER CITIES IN DFW.

WORKING WITH OUR OWN RESOURCES, TEXTRON AND NTA, TO MAINTAIN AND GROW OUR INFRASTRUCTURE.

PRUDENT IN OUR UTILIZATION OF LIMITED GREEN SPACE.

FOCUS ON REHABILITATION OF OLDER COMMERCIAL AND MULTIFAMILY.

AND FINALLY, ECONOMIC GROWTH AND DEVELOPMENT.

FULL SERVICE HOSPITAL WITHIN OUR CITY.

IMPROVE OPPORTUNITIES FOR UTILIZING HOME GROWN.

SO THESE ARE SOME INPUTS AGAIN THAT WE GOT FROM THE VISION SIDE OF THE HOUSE.

AND WE SAID, OKAY LET'S NOW COMBINE EVERYTHING AND SAID, FINALLY, LET'S JUST GET TOTAL INPUTS ON.

IS THERE ANYTHING ELSE THAT WE WANT TO ADD, INCLUDING WHAT'S GOING TO COME UP NEXT IN THE FOCUS AREAS IN THE STRATEGIC FOCUS AREAS.

HERE ARE THE RESPONSES. I'LL TELL YOU I READ THESE.

THEY WERE AMAZING RIGHT.

AND SO THE FIRST ONE SAYS GARLAND IS A HIDDEN GEM.

WITHIN THAT GEM, A 250,000 MOLECULES DANCING AROUND WITH THE POTENTIAL FOR A BRIGHTER FUTURE THAT IS EVER KNOWN.

GIVEN THE OPPORTUNITY, WE WILL AWAKE A SLEEPING GIANT.

FOCUS ON TECHNOLOGY, DATA DRIVEN SOLUTIONS TO IMPROVE EFFICIENCY AND CREATE A CONNECTED CITY EXPERIENCE BY GROWING OUR ECONOMY AWAY FROM PROPERTY TAX BASE APPROACH FROM A PROPERTY TAX BASE APPROACH.

ALL OF THE THINGS DESIRED BY RESIDENTS, BUSINESSES AND VISITORS WILL FALL INTO PLACE.

SOME SOME GOOD FEEDBACK WE GOT IS IN THE VISION STATEMENT.

PROGRESSIVE HAS A NEGATIVE CONNOTATION IN SOME CONTEXTS.

AND MAKE IT SHORT RELATABLE TO OUR COMMUNITY AND MAKE IT MEMORABLE.

AND SO FROM ALL OF THIS, OUR JOB WAS TO TAKE ALL OF THIS FEEDBACK AND SAY, OKAY, HOW DO WE CRAFT THE MESSAGE AND PRESENT A COUPLE OF OPTIONS AND AND GET TO HEAR YOUR THOUGHTS.

SO HOW WOULD LIKE TO MOVE FORWARD IF OKAY.

WITH YOU? I WANT TO TAKE YOU TAKE YOU BACK TO THE DEFINITION THAT WE KIND OF LOOKED AT EARLIER FOR A MISSION STATEMENT.

WE'RE SAYING WHO WE ARE, WHAT WE DO, FOR WHOM AND WHY.

AND SO WE WANT TO COVER THESE FOUR ASPECTS.

AND BASED ON WHAT YOU PROVIDED, WE PROVIDE, WE TOOK WE PUT OUT A COUPLE OF OPTIONS HERE.

AND OPTION NUMBER ONE, AS I READ THROUGH THESE I'D LIKE TO PAUSE FOR JUST A COUPLE OF MINUTES AND ALLOW YOU TO JUST KIND OF SCRIBBLE THROUGH.

YOU HAVE A COUPLE OF PAGES ON IN YOUR WORKBOOK.

IF YOU KIND OF TURN NEXT PAGE, YOU'LL SEE EACH ONE OF THESE OPTIONS, AND YOU CAN KIND OF SCRIBBLE THROUGH YOUR THOUGHTS ON THEM, AND IT WILL GO BACK INTO

[00:45:09]

OPTION ONE IT SAYS WE PRESERVE PUBLIC TRUST AND DELIVER QUALITY SERVICES TO BENEFIT THE GARLAND COMMUNITY, THE GARLAND COMMUNITY TAKEN ON BECAUSE IT'S INCLUSIVE AND WE SAID CITIZENS, RESIDENTS, BUSINESSES BUSINESSES AND EVERYONE.

SO THAT WAS THE GARLAND COMMUNITY.

OPTION TWO, IT SAYS WE FOSTER COMMUNITY TRUST AND GROWTH FOR TOMORROW'S GARLAND AND OPTION THREE, WE SERVE TO GROW A THRIVING GARLAND COMMUNITY TODAY AND FOR THE FUTURE.

SO IF POSSIBLE, I'D LIKE TO PROBABLY GIVE EVERYONE JUST JUST A COUPLE OF MINUTES IF WE CAN.

AND PERHAPS YOU HAVE YOUR WORKBOOK.

YOU CAN TAKE DOWN A FEW NOTES BASED ON WHAT YOU'VE HEARD AND THEN OPEN UP FOR FEEDBACK INTO THE MISSION STATEMENT, AND THEN WE'LL MOVE FORWARD TOWARDS THE VISION STATEMENT.

AND SO IN YOUR IN YOUR WORKBOOK YOU'LL SEE OPTION NUMBER ONE.

IT WILL SAY I LIKE IT AS IT IS FOR THE OPTION.

I MAY LIKE IT BETTER IF IT WAS MODIFIED AS FOLLOWS.

AND YOU CAN ADD IN SOME SOME INPUTS INTO THAT AND YOU CAN WRITE ON THAT.

NUMBER THREE IS I'M NOT TOO ENTHUSED, BUT I'D LIKE THE FOLLOWING WORDS TO BE IN THERE.

AND NUMBER FOUR IS SIMPLY A I DON'T LIKE THIS.

I DON'T LIKE THIS ONE AT ALL.

AND.

ALL RIGHT. I THINK EVERYBODY'S PROBABLY HAD ENOUGH.

I SEE I STILL SEE SOME SCRIBBLING GOING ON.

AS FAR AS OBVIOUSLY THE, THE THREE OPTIONS AND, YOU KNOW, SORT OF THE LOOKING BACK AT, AT SORT OF WHAT, WHAT LED TO THE DEVELOPMENT OF THESE THREE SENTENCES? IF ANYBODY HAS ANY INPUT AS FAR AS ANY OF THE OPTIONS, I MEAN, WE CAN WE CAN TAKE THAT TODAY, BUT OBVIOUSLY YOU KNOW, I DON'T WANT US TO GET HUNG UP IN A, IN A VERY LONG DISCUSSION OVER ONE WORD OR A COMMA OR SOME HOW, HOW THESE THINGS ARE STATED.

I THINK TODAY IS PROBABLY BEST JUST TO GET SOME GENERAL IMPRESSIONS OF THE OPTIONS.

AND THEN WE CAN YOU KNOW THERE'S PROBABLY A COUPLE OF DOZEN DIFFERENT WORDS THAT COULD BE SUBSTITUTED IN HERE AND THERE.

AND TO GO THROUGH ALL OF THOSE OPTIONS TODAY IS IS PROBABLY NOT THE BEST USE OF OUR TIME.

AND I WOULD GUESS MR. CITY MANAGER, IF WE DO GO DOWN THAT ROAD, IF THERE IS, IF THERE IS SOME SORT OF SUGGESTED ALTERATION, IF YOU WILL.

DO WE FEED THOSE BACK TO LETICIA AS FAR AS GETTING THOSE BACK IN THE PROCESS, WHERE DO YOU SEE THAT GOING BEFORE WE BEFORE WE OPEN THE OPEN THE GATES HERE.

YEAH. YOU KNOW, AS YOU GO HOME FROM TODAY, YOU'RE CERTAINLY GOING TO THINK ABOUT SOMETHING THAT YOU, YOU WANTED TO MENTION.

I WOULD SAY GO AHEAD AND SEND THAT.

ACTUALLY, IF YOU JUST SEND IT TO THE CMO EMAIL ADDRESS, THAT'LL KIND OF CATCH US ALL.

AND AND WE'LL GET THAT, GET THAT FEEDBACK AND INCORPORATE IT AS WELL.

SO AND THEN, YEAH, EVEN BETTER IN WHATEVER FINAL VERSION WE COME UP WITH.

RIGHT. OKAY.

SO THAT'S, THAT'S GRAPH.

THE CMO OPTION IS IS GREAT.

SO WITH THAT ARE THERE ANY GENERAL COMMENTS ON THESE ON THIS SECTION? KESSLER DUTTON. SO MY ONLY COMMENT IS I DON'T KNOW HOW WE'RE ANSWERING.

WHO ARE WE WITH? WE LIKE, I'M I'M A LITTLE CONFUSED BY THAT.

[00:50:05]

OKAY. I THINK, I THINK THAT WENT BACK EARLIER.

WE, WE AS BASICALLY TEAM GARLAND.

NO BUT THAT'S A, THAT'S A DIFFERENT OPTION.

TEAM GARLAND HAS ITS OWN OPTION.

AND WE AS AN OPTION.

YEAH I WOULD SAY THAT THAT'S TRUE.

SO THE YEAH WE ESSENTIALLY HOW DO YOU START THE SENTENCE OF THE MISSION STATEMENT.

RIGHT. SO IT COULD BE WE COULD BE TEAM GARLAND.

I THINK WE WE PLUGGED IN.

WE CERTAINLY COULD BE CHANGED TO TEAM GARLAND.

AND THAT'S THE KIND OF FEEDBACK THAT WE'RE LOOKING FOR THERE.

BECAUSE THERE WAS A TIE ON THE SURVEY.

YEAH. YEAH. OKAY.

COUNCIL MEMBER. HEDRICK.

THANK YOU. MAYOR. ONE ONE COMMENT I WANT TO HAVE IS THAT TWO OF THESE KIND OF HAVE STATEMENTS THAT MAINTAIN THE STATUS QUO, AND ONLY ONE OF THEM SHOWS GROWTH.

AND THAT'S WHAT I LIKE ABOUT THE THIRD OPTION IS THAT IT SHOWS IMPROVEMENT.

TO ADDRESS CHRIS'S COMMENT ABOUT THE WE, WE IS USUALLY THE SPEAKER SPEAKING FOR A GROUP OF PEOPLE.

SO THAT'S THE PERSON MAKING THE STATEMENT RIGHT THERE.

SO I THINK THAT'S IDENTIFIED I LIKE THE WE BECAUSE WE AS THE CITY OR WE AS TEAM GARLAND, WE ARE THE ONE MAKING THE STATEMENT.

SO THAT I THINK THAT'S A GREAT WAY TO START.

SO THANK YOU MAYOR. MAYOR. OKAY.

I WANT TO GO BACK TO YOU. SO CAN YOU GIVE ME YOUR GIVE ME YOUR COMMENTS AGAIN, AS FAR AS THE THIRD STATEMENT IS THE ONLY ONE THAT SHOWS IMPROVEMENT.

SO IT SAYS WE'RE GROWING.

THE OTHER ONES PRESERVING.

THEY'RE PRESERVING OR FOSTERING.

THAT'S NOT SHOWING GROWTH THROUGH THESE.

THAT'S JUST MAINTAINING STATUS QUO.

YOU SAID NOT TO GET HUNG UP ON COMMAS OR ALL THAT STUFF WE NEED TO MAKE SURE THAT IT'S GRAMMAR AND PUNCTUATION CORRECT IN ALL OF THESE.

YES, ABSOLUTELY.

OKAY. I JUST WANT TO CLARIFY WHERE YOU YOU'RE YOU'RE VERY GOOD.

DEPUTY MAYOR PRO TEM MOORE OR.

NO. EXCUSE ME. THAT'S ALL RIGHT.

MAYOR PRO TEM MOORE.

SORRY, I KNOW I GOT IT RIGHT THE FIRST TIME TODAY.

GO AHEAD SIR, OKAY, I DIDN'T I DIDN'T KNOW THAT WE WERE GOING TO GET INTO THIS PIECE OF IT.

I THOUGHT WE WERE GOING TO BRING IT BACK, BUT THAT'S GOOD.

I AGREE THAT IN FACT, NUMBER THREE TALKS ABOUT PRESENT AND FUTURE, BUT I ALSO THINK THAT JUST THAT ONE WORD WE PRESERVE PUBLIC TRUST SHOULD PROBABLY GO WITH THE NUMBER THREE AND THEN COMPLETE NUMBER THREE OUT.

NOW I'M BREVITY I'M ONE FOR KEEPING THINGS SMALL AND SIMPLE.

BUT I DO BELIEVE PUBLIC TRUST IS VERY IMPORTANT IN THE WAY OF PRESERVATION.

SO NOW WE'RE TALKING ABOUT PRESENT AND FUTURE, AND A VERY IMPORTANT PIECE OF WHAT I THINK THE PUBLIC DEALS WITH.

SO THANK YOU, MR. MAYOR. GOOD POINT.

DEPUTY MAYOR PRO TEM LOOK, I LIKED THREE AS WELL.

THAT'S ALL I HAVE TO SAY. THANK YOU.

DO YOU LIKE THREE WITH THE INCLUSION OF PUBLIC TRUST? I WOULD BE OKAY WITH THAT.

I THINK IT MAKES IT LONGER, BUT I CIRCLED.

I LIKE IT AS IS, SO.

OKAY. THAT WAS THE ONLY ONE I DIDN'T MAKE ANY CHANGES TO.

SOUNDS VERY GOOD. OKAY.

THANK YOU. AND COUNCILMEMBER WILLIAMS, THANKS, MAYOR.

TO MAKE ONE SHORT AND SWEET.

SECONDLY MAYOR, MAYOR PRO TEM, JUST READING MY NOTES.

THE COMMENTS I THINK AT SOMEWHERE IN HERE I LIKE OPTION ONE BECAUSE PUBLIC TRUST I THINK, IS CRITICAL.

REFLECTING BACK ON THE COMMUNITY SURVEY THAT WE JUST HEARD.

I THINK ONE OF THE DRIVERS UNDERLYING THINGS THERE IS PARTICULARLY IN THE ENVIRONMENT THAT WE EXIST IN TODAY.

I THINK THAT'S HUGE AT EVERY LEVEL, PARTICULARLY AT OUR LEVEL OF GOVERNMENT.

I THINK THAT THOSE RESULTS REFLECT A I'M NOT GOING TO SAY A LACK, BUT A CHALLENGE TO DEVELOP MORE PUBLIC TRUST IN WHATEVER WE DO AS A CITY.

SO I, I PREFER ONE, BUT I'M GOOD WITH THREE.

BUT I DEFINITELY THINK THAT PUBLIC TRUST SHOULD BE INTEGRATED INTO THE FINAL ONE, BECAUSE I THINK THAT THAT IS THE SURVEY RESULTS SHOW IT'S IMPORTANT TO OUR CONSTITUENTS, AND I THINK THAT'S BIG.

THANK YOU MA'AM. OKAY.

VERY GOOD SIR. ANY FURTHER COMMENT ON THIS.

AND OBVIOUSLY, YOU KNOW, AS YOUR BRAIN SORTS THROUGH THIS OVER THE NEXT FEW HOURS, DAYS YOU CAN SEND THOSE, YOU KNOW, SEND THOSE THOUGHTS AND, AND SUCH IN IT SOUNDS LIKE THE GENERAL CONSENSUS OF JUST THE FOLKS WHO'VE SPOKEN AT THIS POINT IS OPTION THREE APPEARS TO BE IN THE LEAD WITH THE INCLUSION OF THE PUBLIC TRUST TYPE STATEMENT.

BUT WE'LL SEE IF WE GAIN ANY ANY FURTHER COMMENTARY AS, AS FOLKS HAVE A TIME TO SORT THROUGH IT.

ALL RIGHT. VERY GOOD.

THANK YOU. MAYOR I'D LIKE US TO MOVE OVER TO VISION.

[00:55:02]

WANT TO ALIGN, ALIGN TO MISSION EVOKE ACTION AND AND MEASURABLE.

SOMETHING THAT WE CAN SAY, HEY, WE, YOU KNOW, WE WE DID SOMETHING ABOUT THAT OR WE DID THAT AND IT'S, IT'S ALMOST A PROPHECY YOU'RE TELLING RIGHT IN THE FUTURE.

AND SO WE'LL GO THROUGH THESE AND SAY, GARLAND WILL BE A MODEL CITY RECOGNIZED FOR ITS INNOVATION AND INCLUSIVITY, INSPIRING PRIDE AND OPPORTUNITY FOR ALL.

OPTION TWO IS GARLAND WILL BE AGAIN A THRIVING HUB OF INNOVATION AND COMMUNITY SPIRIT, WHERE QUALITY SERVICES AND A STRONG SENSE OF BELONGING MAKE IT A PLACE RESIDENTS ARE PROUD TO CALL HOME.

AND OPTION THREE, GARLAND WILL BE A VIBRANT COMMUNITY THAT RESIDENTS ARE PROUD TO CALL HOME, WHERE SAFETY AND INNOVATION THRIVES AND QUALITY SERVICES ENHANCE EVERYDAY LIFE.

AND SO THE THOUGHT IS JUST AS EXACTLY AS YOU DID JUST A COUPLE OF MINUTES AGO.

MAYOR, IF OKAY WITH YOU, JUST TAKE A COUPLE OF MINUTES, SCRIBBLE A COUPLE OF NOTES DOWN AND SHARE YOUR THOUGHTS.

MAYOR PRO TEM MOORE.

NUMBER ONE, YOU'VE ALREADY HAD YOUR YOU'VE ALREADY YOU'VE ALREADY HAD YOUR MOMENT OF THOUGHT.

I JUST READ THROUGH THEM.

AND REALLY, NUMBER ONE, I THINK KIND OF INCORPORATES PRETTY MUCH THE OTHER TWO, BUT THE INCLUSIVITY.

I REALLY LIKE THAT PIECE.

I LIKE THE INNOVATION, THE MODEL CITY ASPECT.

NOW, DON'T GET ME WRONG, I DO THINK WE'RE A THRIVING HUB.

I THINK WE'RE A VIBRANT COMMUNITY, BUT THAT JUST SEEMS TO INCORPORATE AND ENCOMPASS EVERYTHING.

NUMBER ONE FOR ME.

THANK YOU. THANK YOU, MR. MAYOR. OKAY.

VERY GOOD. COUNCILMEMBER WILLIAMS. THANK THANK YOU, THANK YOU MAYOR.

I LIKE WELL AT THIS AT THIS POINT OPTION OPTION THREE.

I WAS LOOKING AT ONE, BUT MY CONCERN WITH ONE IS I DON'T I DON'T LIKE A STATEMENT.

I MEAN, I WOULDN'T PREFER A STATEMENT WHERE THE AVERAGE, THE AVERAGE READER OR USER HAS TO PULL A DICTIONARY TO FIND WHAT WHERE IT MEANS. AND OPTION ONE HAS A WORD IN THERE, AND MOST PEOPLE KNOW WHAT INCLUSIVE.

BUT WHEN YOU ADD THAT, WHAT DOES IT MEAN? SO I'M NOT THINKING OF HOW I SEE THIS, BUT BUT OUR OUR COMMUNITY SEES THIS.

SO I THINK THAT THAT OPTION THREE BECAUSE I DON'T LIKE ONE BECAUSE WE'VE GOT SOME TERMS IN THERE THAT THE, THE READER FROM READERS PERSPECTIVE I THINK WOULD KNOW, WOULD ASK THE QUESTION, WHAT DOES THIS MEAN? WHAT DO YOU WHAT IS THE WORD? INCLUSIVE. INCLUSIVE? I CAN'T EVEN SAY IT. INCLUSIVITY MEANS THEY KNOW WHAT THE WORD INCLUDE MEANS.

BUT WHAT DOES THIS MEAN? SO THAT'S MY ISSUE WITH ONE.

MY PREFERENCE IS IT WOULD BE THREE.

THANK YOU. MAYOR. OKAY.

COUNCILOR HEDRICK.

THANK YOU. MAYOR. I AGREE WITH COUNCILMAN WILLIAMS. I LIKE NUMBER THREE.

AGAIN, CLEANING UP GRAMMAR ON THAT ONE.

BUT I THINK IT ENCAPSULATES MORE OF THE GROWTH, YOU KNOW, THE THRIVING, THE GROWTH, THE WHAT I WAS TALKING ABOUT EARLIER WITH OUR MISSION STATEMENT IS THAT WHERE IT'S THRIVING AND WE'RE ENHANCING THERE.

SO THOSE THINGS ARE MOVING FORWARD RATHER THAN NUMBER ONE, WHERE WE'RE JUST SIMPLY RECOGNIZED, I DON'T KNOW BY WHO.

ARE THERE AWARDS FOR BEST CITY AWARDS OR SOMETHING LIKE THAT? SO IT'S THAT JUST KIND OF IT DOESN'T DO MUCH FOR ME, NUMBER ONE.

BUT I CERTAINLY NUMBER THREE IS MY OPTION.

THANK YOU. VERY GOOD, COUNCILMEMBER BASS.

THANK YOU MAYOR. ACTUALLY I LIKE OPTION ONE.

AND I HAD SOME OF THE SAME WORDS UNDERLINED THAT MAYOR PRO TEM MOORE HAD UNDERLINED MODEL CITY CITY INNOVATION, INCLUSIVITY AND OPPORTUNITY FOR ALL. AND HERE'S THE REASON WHY I LIKE OPTION ONE.

GARLAND IS A MODEL CITY, SO GARLAND IS A IT'S A GREAT EXAMPLE OF AN AMERICAN SUBURB.

WHEN YOU LOOK AT GARLAND, WE HAVE A LOT OF DIVERSITY IN OUR CULTURES REPRESENTED.

WE HAVE A LOT OF DIVERSITY IN OUR BUSINESSES REPRESENTED, AND WE HAVE A LARGE ENOUGH POPULATION TO, YOU KNOW, TO HIT DATA POINTS THAT ARE LOOKED AT.

SO I THINK THAT GARLAND IS A MODEL CITY, AND I THINK THAT WE NEED TO BE YOU KNOW, WE ARE RECOGNIZED FOR BEING A MODEL CITY.

AND I REALLY LIKE INCLUSIVITY BEING IN THERE, WHETHER YOU REPHRASE IT AND MAKE IT AN EASIER TO PRONOUNCE, YOU KNOW, LESS SYLLABLE LESS SYLLABLES IN THE WORD OR NOT IS MOOT.

[01:00:02]

WE ARE LOOKING TO OUR FUTURE.

OKAY? AND GARLAND HAS A DIVERSE CULTURAL POPULATION, AND I THINK THAT WE RECOGNIZE THAT.

AND I THINK THAT WE NEED TO SHOW IN OUR VISION STATEMENT THAT WE DO RECOGNIZE AND APPRECIATE THAT.

AND RIGHT ALONG WITH THAT GOES OPPORTUNITY FOR ALL.

OKAY. WE WANT TO WE WANT TO PROVIDE EQUAL OPPORTUNITIES TO ALL OF OUR RESIDENTS, NO MATTER WHAT THEIR BACKGROUND, SOCIO ECONOMIC STATUS OR WHATEVER.

AND SO AND OF COURSE, I DEFINITELY LIKE HAVING THE WORD INNOVATION IN THERE THAT SHOWS THAT WE ARE, FROM AN ECONOMIC STANDPOINT, LOOKING TO THE FUTURE, WHETHER THAT BE THROUGH OUR DATA CENTERS, WHETHER THAT BE THROUGH ATTRACTING NEW TECHNOLOGY, WHATEVER THAT IS.

INNOVATION ENCAPSULATES THAT.

SO I THINK OPTION ONE IS THE ONLY WAY TO GO.

THANK YOU. VERY GOOD.

DEPUTY MAYOR PRO TEM. LOOK, I LIKED 1 IN 3.

ALSO. ONE WAS MY FAVORITE.

BUT I THINK THAT YOU COULD POSSIBLY SWITCH MODEL CITY AND VIBRANT COMMUNITY AND AND REALLY GET WHAT IS TRYING TO BE EXPLAINED IN OPTION ONE AND KIND OF DIG IT INTO OPTION THREE.

I WOULD PLAY AROUND WITH THAT A LITTLE.

OKAY. THANK YOU, THANK YOU.

GOOD POINT. AND COUNCIL MEMBER OTT.

WELL, I'M I THINK OPTION THREE, IT WOULD BE MY CHOICE.

I THINK THAT'S A LITTLE BIT STRONGER FOR.

I MEAN, IT'S THE ONLY ONE THAT THAT TALKS ABOUT SAFETY, WHICH HAPPENS TO BE SOMETHING THAT PEOPLE FIND TO BE IS IMPORTANT.

AND IT'S ALSO SOMETHING THAT WE DON'T PEOPLE AREN'T LOOKING AT IT THAT WE'RE THAT WE'RE FOLLOWING THROUGH ON THAT ASPECT AS WELL, THAT ALSO IT HAS INNOVATION AND THAT WE'RE PROUD COMMUNITY.

BUT I DO THINK OPTION THREE IS THE STRONGER OF THEM.

THANK YOU. VERY GOOD.

ANY ADDITIONAL COMMENTS ON THIS ONE? ALL RIGHT. I THINK WE FAIRLY SPLIT THE ROOM ON ONE AND THREE.

I THINK THERE'S SOME GOOD POINTS IN THERE.

MAYBE THERE'S A BLEND OF ONE AND THREE.

THE VIBRANT COMMUNITY MODEL CITY.

THE THE COMMENT IN IN OPTION ONE OF RECOGNIZED I MEAN, THAT IS A LITTLE WE KNOW OUR RECOGNITIONS, BUT HOW DO YOU HOW DO YOU QUANTIFY THAT AS AS FAR AS A SENTENCE INCLUSIVE INCLUSIVITY YOU KNOW, THERE'S THERE'S VARIATIONS OF THAT THAT I THINK COULD BE INCORPORATED.

SO I THINK JUST FROM WHAT I GET SITTING HERE IS IF WE CAN KIND OF LOOK AT 1 IN 3 AND WITHOUT MAKING WITHOUT MAKING A REALLY LONG SENTENCE OUT OF THEM, OF SOME WAY OF KIND OF COMBINING THE ESSENCE OF THOSE TWO, I THINK IS SEEMS TO BE WHERE WE'RE HEADED.

AND OBVIOUSLY, AGAIN, THERE COULD BE SOME ADDITIONAL INPUT ON THIS AFTER WE AFTER WE MOVE ON FROM THIS TODAY.

ALL RIGHT. THANK YOU, MAYOR AND COUNCIL.

THANK YOU. VERY GOOD.

THANK YOU SIR. OH GO AHEAD JEFF.

IF YOU'LL IF YOU DON'T MIND FLIPPING THE SLIDES TO.

I CAN'T GET THE REMOTE TO WORK.

I GOT YOU. ACTUALLY, YOU KNOW, IT WOULD BE GOOD TO TURN IT ON.

WELL. MAYBE THAT WHOLE INNOVATIVE TECHNOLOGY POINT THAT DID NOT WORK, SO I STILL NEED YOU.

ALL RIGHT. YOU'RE ON RETAINER.

WE ARE GLAD TO SERVE.

WE ARE. THIS WILL BRING US TO ITEM FOUR.

[4. Results of 10 Vision Focus Areas Survey - City Manager Jud Rex]

ALL RIGHT, SO THE OTHER PART OF THE SURVEY, COUNCIL THAT OBVIOUSLY WAS INCLUDED WAS TRYING TO GET TO A PRIORITIZATION OF OUR TEN FOCUS AREAS OR STRATEGIC FOCUS AREAS. AND REALLY, WE'RE KIND OF LIVING UP TO THE COMMITMENT THAT IS ON OUR AGENDAS THERE AT THE BOTTOM, YOU SEE BELOW THE THE GRAPHIC.

EACH YEAR, THE CITY COUNCIL REVIEWS AND UPDATES ITS GOALS FOR THE GARLAND COMMUNITY AND CITY OPERATIONS.

CITY MANAGEMENT USES THESE GOALS TO GUIDE OPERATIONAL PRIORITIES, DECISION MAKING AND RESOURCE ALLOCATION.

AND SO WE'RE GOING TO DIG INTO WHAT THE RESULTS OF OF THE SURVEY ARE ON THE STRATEGIC FOCUS AREAS.

AND REALLY WHAT DRIVES THAT.

NOT ONLY IS THE COMMITMENT THAT THAT STATED THERE IN THE CAPTION, BUT WE DID MAKE A CHANGE TO OUR BUDGET PROCESS THIS YEAR WHERE DEPARTMENTS WERE, I THINK, THAN WERE DEPARTMENTS WERE ASKED TO CATEGORIZE THEIR THEIR BUDGET REQUESTS WITHIN THE STRATEGIC FOCUS AREAS.

AND SO THIS INPUT FROM YOU IS SUPER IMPORTANT WHEN IT COMES TO US PUTTING OUR OPERATIONAL BUDGET TOGETHER HERE OVER THE COMING WEEKS AND MONTHS IN PREPARATION FOR PRESENTING THE BUDGET TO YOU IN AUGUST.

SO YOU WANT TO FLIP TO THE NEXT SLIDE THERE.

[01:05:03]

PERFORMANCE, YOU KNOW, WHAT ARE WE DOING? WELL, WHAT ARE WE NOT DOING? WELL OUT OF THE IN THE TEN AREAS.

AND THEN RESOURCE ALLOCATION ESSENTIALLY HOW WOULD YOU DIVIDE UP POINTS OR DOLLARS IF YOU'RE BUDGETING BETWEEN THE TEN FOCUS AREAS.

SO WE'LL START WITH IMPORTANCE.

AND AGAIN GIVING SOME CONTEXT AROUND THIS.

IF ANY OF THOSE TEN AREAS WERE NOT IMPORTANT, THEY PROBABLY WOULDN'T BE UP THERE AT ALL.

AND SO WHILE WE WE ASKED YOU TO RANK BASED ON IMPORTANCE, THIS REALLY IS MORE OF A RANKING MORE THAN ANYTHING ELSE.

SO YOU SEE THE SEE THE ORDER OF THINGS HERE.

I GUESS KIND OF THE, THE TOP CLUSTER THERE OF OF FOCUS AREAS, SAFE COMMUNITY, WELL-MAINTAINED CITY INFRASTRUCTURE RELIABLE, COST EFFICIENT UTILITY SERVICES, SOUND GOVERNANCE, GOVERNANCE AND FINANCES KIND OF REPRESENT THAT TOP TOP RANKING THERE.

AND YOU CAN SEE HOW THE OTHERS FALL INTO PLACE AFTER THAT.

NEXT QUESTION HAD TO DO WITH PERFORMANCE.

ESSENTIALLY HOW WELL ARE WE DOING EACH OF THE AREAS.

OH SORRY.

IT WORKS NOW.

THANK YOU, DAN, BY THE WAY SO THE NEXT QUESTION HAD TO DO PERFORMANCE.

HOW WELL ARE WE ARE WE PERFORMING IN EACH OF THESE AREAS? YOU SEE THE RESULTS HERE.

THE AVERAGE RANKING HERE WAS 6.88.

AND SO THERE'S A THERE'S A BLACK LINE THERE ON BOTH GRAPHICS THAT SHOW GENERALLY WHERE THAT IS AT.

SO THAT YOUR, YOUR SERVICES THAT WERE RATED SERVICES OR AREAS THAT WERE RATED ABOVE AVERAGE INCLUDE RELIABLE, COST EFFICIENT UTILITY SERVICES, SAFE COMMUNITY SOUND GOVERNANCE AND FINANCES.

ENHANCED QUALITY OF LIFE THROUGH AMENITIES, ARTS AND EVENTS, AND CUSTOMER FOCUSED CITY SERVICES, WITH THE REMAINING ONES FALLING.

FALLING BELOW THEIR NEIGHBORHOOD AND OR VIBRANT NEIGHBORHOOD AND COMMERCIAL CENTERS, WAS RATED THE LOWEST AND WELL MAINTAINED CITY INFRASTRUCTURE. I THINK NEXT IN LINE THERE.

SO AGAIN, ANOTHER DATA POINT.

THE SHADED AREAS THE SHADED CURVES BEHIND EACH OF THOSE GENERALLY SHOW HOW THE ANSWERS WERE DISTRIBUTED AS WELL.

SO IT GIVES AGAIN SOME MORE CONTEXT AROUND THE PERFORMANCE IN THE STRATEGIC FOCUS AREAS.

AND THEN THE THIRD ONE WAS OKAY, IF WE GAVE YOU SOME HYPOTHETICAL POINTS OR DOLLARS TO DISTRIBUTE TO EACH OF THE TEN AREAS, HOW WOULD YOU DO THAT WITH WITH THAT LIMITED RESOURCE OF ONLY 100? AND THEN ANOTHER RULE THAT WE KICKED IN WAS YOU CAN ONLY GIVE A MAXIMUM OF 30 TO 1 PRIORITY.

SO THIS IS ESSENTIALLY THE PERCENTAGE THERE.

SO IF 100 100 POINTS NINE COUNCIL MEMBERS 900 MAXIMUM TOTAL POINTS.

HOW MUCH THE PERCENTAGE REFLECTS HOW MANY POINTS WERE GIVEN TO TOTAL TO EACH OF THOSE FOCUS AREAS.

SO SAFE COMMUNITY, GROW ECONOMIC BASE, WELL MAINTAINED CITY INFRASTRUCTURE KIND OF REPRESENTING THAT TOP TOP THIRD OF THE RESPONSES THERE. AND YOU CAN SEE HOW THE OTHERS FALL INTO PLACE AFTERWARD.

AND WHAT WE DID HERE ON THE THIRD SLIDE OR THIS LAST SLIDE WAS, OKAY, LET'S PUT ALL THOSE TOGETHER AND DO WE WHAT DO WE NOTICE IN TERMS OF TRENDS.

BECAUSE THAT'S REALLY WHAT WHAT WE WANTED TO LOOK FOR HERE.

IT WOULD HAVE BEEN REAL EASY TO JUST STOP THE SURVEY AT IMPORTANCE AND JUST HAVE YOU RANK THOSE TOP TO BOTTOM.

BUT I THINK THE, YOU KNOW, THE PERFORMANCE FACTOR AND THEN ALLOCATING BUDGET GIVES US SOME SENSE OF, OKAY, HOW WHERE ARE THE GAPS, YOU KNOW, BETWEEN IMPORTANCE AND PERFORMANCE AND EVEN BETWEEN ON THE BUDGET ALLOCATION AS WELL.

AND SO A COUPLE I, A COUPLE I WANTED TO POINT OUT AND YOU'LL HAVE YOUR OWN TAKEAWAYS AS WELL.

BUT SO INFRASTRUCTURE RATED HIGH IN TERMS OF IMPORTANCE BELOW AVERAGE ON PERFORMANCE AND A HIGH BUDGET ALLOCATION.

SO YOU KNOW TO ME THAT STANDS OUT AS OKAY, THAT'S A THAT'S AN AREA OF FOCUS WHEN IT COMES TO THESE TEN AREAS.

THE OTHER ONE IS GROW ECONOMIC BASE.

YOU KNOW AGAIN SOMETHING THAT WAS RATED HIGH ON BUDGET ALLOCATION, KIND OF IN THE MIDDLE ON IMPORTANCE AND SLIGHTLY BELOW AVERAGE ON OR IMPORTANCE AND THEN SLIGHTLY BELOW AVERAGE ON PERFORMANCE.

SO THOSE WERE A COUPLE THAT I WANTED TO POINT OUT THERE.

THE YELLOW BOX AS YOU SEE ON HERE INDICATE THOSE THAT WERE ON ON THE PERFORMANCE SIDE BELOW AVERAGE AND THEN A BUDGET ALLOCATION ABOVE 100, WHICH IS THE AVERAGE WHEN IT COMES TO THAT ASPECT.

SO MAYBE WHILE WE'RE ON THIS SLIDE, WE'LL PAUSE THERE AND JUST KIND OF ANSWER QUESTIONS AND GAIN ANY FEEDBACK AND PERSPECTIVE YOU HAVE ON

[01:10:02]

SO IT SAYS ON THE SECOND COLUMN IT SAYS IMPORTANCE RANKING.

HOW IS THAT DETERMINED? BECAUSE, FOR EXAMPLE, IF I LOOK AT THE BUDGET ALLOCATION, GROWING ECONOMIC BASE IS 140.

SO THAT SHOULD BE TIED FOR SECOND PLACE FROM THE WAY I'M READING THIS.

SO I'M KIND OF CURIOUS HOW WAS THE IMPORTANCE RANKING ON HERE.

SO THE IMPORTANCE RANKING WAS GOING BACK TO THE FIRST ONE.

THIS IS WHEN YOU ACTUALLY RANKED THEM TOP TO BOTTOM ON THE SURVEY.

SO IT'S NOT A IT'S NOT AN INDEX OR AN AGGREGATE.

THERE WAS NO CALCULATION FOR THAT ONE.

IT'S BASED SOLELY ON WHAT THE RESPONSES WERE.

OKAY. GOING BACK TO THIS, THIS SLIDE OKAY.

BECAUSE I WAS LOOKING AT OKAY.

SO YEAH. SO THAT'S CONTRADICTORY TO THE TO THE TOP TEN STRATEGIC FOCUS AREAS.

ONE THAT ONE RIGHT THERE.

AND THEN ON THE OKAY.

SO THEY DON'T MATCH UP THE IMPORTANCE AND THE ALLOCATION OF BUDGET OR.

YEAH, SOME SOME PEOPLE'S FACES CHANGED AS THEY WENT ALONG.

YEAH. SUMMARIZING ALL THREE ALL THE RESPONSES TO ALL THREE QUESTIONS OKAY.

ALL RIGHT. THANK YOU. IT'S THE ONLY QUESTION I HAD.

COUNCIL MEMBER DUTTON I'M SORRY.

IF THEY DON'T MATCH UP, IT'S PROBABLY MY FAULT.

I GAVE EVERYONE TEN BECAUSE THIS QUESTION GAVE ME ANXIETY.

IT WAS VERY HARD TO ANSWER.

LIKE, I DON'T KNOW IF ANYONE ELSE STRUGGLE WITH IT, BUT LIKE, HOW DO YOU ALLOCATE THINGS THAT YOU KNOW ARE EQUALLY IMPORTANT AND YOU CAN'T HAVE ONE WITHOUT THE OTHER? AND I PROBABLY READ WAY TOO MUCH INTO IT.

SO EVERYONE GOT TEN.

NO, IT IS, YOU KNOW, I MEAN, A LOT OF, A LOT OF WHAT WE DO HERE, WE ARE WEIGHING VERY EQUAL, VERY IMPORTANT, VERY YOU KNOW, OUR WHETHER IT'S STRATEGIC, WHETHER IT'S EMOTIONAL, WHETHER IT'S A PHYSICAL THING THAT WE DO IT.

YOU KNOW SOMETIMES THE DIVISION SOMETIMES THE DIFFERENCE BETWEEN THEM IS RAZOR THIN MARGINS.

SO THAT THAT IS THAT IS A GOOD POINT.

ANY ADDITIONAL QUESTIONS BEFORE WE MOVE FORWARD.

AND. WELL, DEPUTY MAYOR PRO TEM LUCHT.

SO I'D LIKE JUST YOUR TAKE ON THE VIBRANT NEIGHBORHOOD AND COMMERCIAL CENTERS.

IT WAS SCORED LOW AND GIVEN A LOW BUDGET ALLOCATION AS WELL.

SO HOW HOW WILL YOU LOOK AT THAT? YEAH, THAT THAT WAS A LITTLE BIT OF A DICHOTOMY THERE BECAUSE IT'S, YOU KNOW, IN THE TOP HALF IN TERMS OF IMPORTANCE.

AND I THINK GOING BACK TO SOME OF OUR CITIZEN SURVEY QUESTIONS, THERE WAS SOME INDICATIONS THERE THAT THAT I THINK PROVIDED SOME INSIGHT TO.

BUT YOU KNOW, SOMEWHERE IN THE MIDDLE, SOMEWHERE IN THE MIDDLE IS HOW I'D RESPOND TO THAT, BECAUSE IT, YOU KNOW, FROM A BUDGET ALLOCATION, IT WAS BELOW AVERAGE, BUT IT'S STILL GOT SOME YOU KNOW, I THINK I THINK IT'S JUST KIND OF IN THE MIDDLE.

OKAY. THANK YOU.

WELL, I THINK IT'S ONE OF THOSE THAT, YOU KNOW, IT.

IT IS IMPORTANT. BUT HOW DO YOU HOW DO YOU QUANTIFY IT TOWARDS A BUDGET BUDGETED ITEM? YOU KNOW, THE I DON'T I THINK THAT'S SOMETHING WHERE THERE THERE'S IF THERE IF YOU WERE TAKING INTO CONSIDERATION FOR THAT A SPECIFIC PROJECT OR A SPECIFIC PLAN.

I THINK IT WOULD BE EASIER TO GET THOSE TWO TO KIND OF EVEN OUT, YOU KNOW, AS FAR AS BUDGETS VERSUS IMPORTANCE.

BUT IT THAT ONE WAS IT'S LIKE, YES, IT'S IMPORTANT, BUT WHAT IS THE QUANTIFYING FACTOR TO IT.

IT'S THAT'S TOUGH. I STRUGGLED WITH THAT A LITTLE BIT AS WELL.

AND TO ME IT WAS LIKE CODE ENFORCEMENT RESOURCES AND THINGS OF THAT NATURE.

SO FACADE IMPROVEMENT PROGRAMS AND YEAH, THEY'RE LIKE THERE'S SOME OVERLAP, I THINK, WITH GROW ECONOMIC BASE TOO.

SO, YOU KNOW, IF YOU LOOK AT WHAT OUR NEIGHBORHOOD VITALITY PROGRAMS DO AND ECONOMIC DEVELOPMENT, THERE'S THERE'S SOME OVERLAP THERE BETWEEN GROW ECONOMIC BASE AND VIBRANT NEIGHBORHOOD AND COMMERCIAL CENTERS, TO WHICH OBVIOUSLY STOOD OUT AS A, HEY, THERE'S AN OPPORTUNITY HERE.

THANK YOU. OKAY.

ANY ADDITIONAL QUESTIONS, COMMENTS BEFORE WE MOVE FORWARD? ALL RIGHT. LET'S GO. THANK YOU.

ALL RIGHT.

AT THIS POINT WE'RE SORT OF AT A NATURAL BREAK.

WE'RE GOING TO TAKE WE'LL TAKE A TEN MINUTE RECESS.

LET'S HAVE.

LET'S HAVE EVERYBODY BACK AT 955, PLEASE.

IT'S A WEIRD TIME, BUT WE ARE IN RECESS.

GOOD MORNING. AND WE ARE, RETURNING FROM RECESS.

THIS IS A SPECIAL MEETING OF THE GARLAND CITY COUNCIL ON JUNE 29TH, 2004, AND WE ARE COMING BACK TO ITEM SIX PRESENTATION REGARDING

[6. Presentation Regarding Garland's Challenges, Long-term Financial Outlook and the FY 2024-25 Budget Outlook and Major Themes - Chief Financial Officer (CFO) Matt Watson and Budget Director Allyson Steadman]

[01:15:07]

MATT ALLISON WELL, WE'LL JUST JUMP RIGHT IN HERE.

SO THIS WILL WE'RE GOING TO START OFF THIS CONVERSATION JUST TALKING ABOUT OUR OUR FINANCIAL BASE.

AND THEN ALLISON WILL TAKE SOME TIME TO TALK ABOUT OUR OUTLOOK MOVING INTO THE BUDGET CYCLE FOR FY 25.

BEFORE GETTING STARTED, I WANT TO GIVE A BIG SHOUT OUT TO ALISON STEADMAN NEXT TO ME.

SHE HAS SPENT A LOT OF TIME AND A LOT OF WORK WITH THE FINANCE AND BUDGET BUDGET DEPARTMENTS THIS YEAR HAVE HAD A LOT OF BIG ROCKS, AS WE CALL THEM, PUT ON OUR PLATES, AND SHE'S DONE AN OUTSTANDING JOB WITH HER TEAM OF GETTING A LOT OF THIS INFORMATION PUT TOGETHER.

VERY GOOD. SO TO START OFF, WE'RE GOING TO TALK ABOUT OUR FINANCIAL BASE AND WHAT WE HAVE STARTED CALLING GARLAND'S CHALLENGE.

AND THIS IS MOST OF THIS IS A LONG STANDING ISSUE WITH OUR FINANCIAL BASE.

THIS IS NOT A NEW INFORMATION TO A LOT OF YOU, BUT IT'S ALWAYS A GOOD REFRESHER TO TALK ABOUT ON HOW WE STAND AND COMPARE IT TO THE METROPLEX AS FAR AS OUR REVENUE BASE AND SOME OF THE CHALLENGES WE HAVE BECAUSE OF THAT LOWER MODEST REVENUE BASE.

SO THIS SLIDE IS SHOWING THE AVERAGE, THE AGE OF OUR GARLINGHOUSE AND STOCK.

AND YOU CAN SEE FOR THE MOST PART 1970 TO 1979 ARE WHEN MOST OF OUR HOMES WERE BUILT AND MOST OF OUR ABOUT 60% OF OUR HOMES WERE BUILT BEFORE 1979.

SO THAT MEANS ABOUT 60% OF OUR BASE IS 45 YEARS OR OLDER.

AND THEN WHEN YOU LOOK AT THE 2000 AND BEYOND THAT'S ABOUT 11%.

SO FROM 2000 TO TODAY, ABOUT 11% OF OUR HOMES ARE WHAT I WOULD REFER AS NEWER HOMES.

WHEN YOU LOOK AT THE METROPLEX, THAT IS CLOSER TO ABOUT 20%.

SO FOR THE MOST PART WE HAVE OLDER HOMES COMPARED TO THE METROPLEX.

AND IN THE METROPLEX THERE'S ABOUT 20% OF NEWER HOMES, WHICH USUALLY MEAN LARGER HOMES, HIGHER VALUED HOMES.

WHICH GETS INTO THE NEXT SLIDE, YOU CAN SEE 73% OF OUR HOMES ARE 2000 SQUARE FOOT OR SMALLER WHICH MEANS WE HAVE A SMALLER HOUSING STOCK AND AN OLDER HOUSING STOCK.

AND LOOKING AT OUR MLS DATA OVER THE LAST 12 MONTHS, THE MOVING AVERAGE FOR PRICE PER SQUARE FOOT FOR LISTED HOMES AND GARLAND WAS ABOUT $175. THE METROPLEX IS ABOUT $206 FOR THAT SAME TIME FRAME.

SO WHAT DOES THAT MEAN? IT MEANS A LOWER, LOWER AVERAGE HOUSE PRICE COMPARED TO THE METROPLEX YOU CAN SEE IN THE GREEN.

THE AVERAGE OF THESE METROPLEX CITIES IS ABOUT $387,000.

FOR A HOME IN GARLAND IS AT ABOUT 291,000, WHICH IS ABOUT 25% BELOW THAT AVERAGE, WITH MESQUITE AND GRAND PRAIRIE THE ONLY OTHER CITIES WITH THE LOWER HOUSING STOCK.

OUR HOUSING STOCK MAKES UP ABOUT 60% OF OUR TAX BASE.

SO WITH LOWER HOME VALUES, THAT REALLY FLOWS INTO OUR TAX BASE, WHICH REALLY DRIVES OUR REVENUE GROWTH, ESPECIALLY ON THE DEBT SERVICE SIDE WHERE WE GET TO TAKE FULL ADVANTAGE OF THE TAX BASE.

AND WE'LL GET INTO THE SENATE BILL TWO AND OUR CAPS LATER.

BUT ON THE OPERATING SIDE, WE ARE ALSO CAPPED AT 3.5% GROWTH.

SO YOU CAN SEE WHERE THE SECOND LOWEST AND TAX BASE I WANTED TO POINT OUT GRAND PRAIRIE IN THE PREVIOUS SLIDE.

YOU SAW THEIR THEIR HOUSING WAS BELOW US.

BUT AS FAR AS FULL TAX BASE, THEY ARE ABOVE US.

AND ONE THING THAT THEY HAVE DONE IS REALLY TRY TO DRIVE THEIR COMMERCIAL DEVELOPMENT.

SO THAT HAS INCREASED THAT.

MANY OF YOU MAY HAVE HEARD OF THE EPIC DEVELOPMENT THERE, BUT WHAT THEY HAVE DONE IS LOOK TO USE ECONOMIC DEVELOPMENT DOLLARS TO INVEST IN THEIR COMMUNITY TO HELP DRIVE THAT TAX BASE UP. PROPERTY TAX RATES.

SO I MENTIONED SENATE BILL TWO AND WHAT THAT HAS DONE AND HOW THEY CAP OUR GROWTH ON THE O AND M AT 3.5% IS THROUGH THE TAX RATE. SO AS WE HAVE TAX BASE GROWTH ABOVE 3.5%, IT'S GOING TO PUSH DOWN THAT TAX RATE TO ALLOW US TO ONLY RECEIVE REVENUE OF 3.5% ON THE O AND M, SO IN 2018, OUR TAX RATE WAS 70.4 $0.06 PER $100 OF VALUATION. WE IN 2019, THE TAX RATE INCREASED FOR OUR 2019 BOND PROGRAM.

AND YOU CAN SEE BY 2023, WE ARE BELOW THE 2018 LEVEL OF 70.46 DUE TO SENATE BILL TWO ERODING

[01:20:08]

THIS IS THE PROPERTY TAX RATES COMPARED TO THE METROPLEX.

BECAUSE WE HAVE A LOWER TAX BASE, WE HAVE A HIGHER TAX RATE.

SO IT'S A FAIRLY SIMPLE EQUATION OF WHAT YOUR TAX BASE TIMES.

YOUR TAX RATE GIVES YOU THE AMOUNT OF DOLLARS YOU NEED TO OPERATE YOUR CITY.

AND WITH US HAVING A LOWER TAX BASE, WE HAVE, OUR TAX RATE HAS TO BE HIGHER TO PULL IN, PULL IN THE AMOUNT OF REVENUE NEEDED TO DO THE SERVICES WE HAVE.

SO YOU CAN SEE RIGHT NOW WE'RE AT A 68.97 TAX RATE WITH DALLAS AND MESQUITE THE ONLY OTHER TWO CITIES THAT ARE ABOVE US.

AND WHILE THIS SAYS 1% SALES TAX IS, WHAT WE'RE DOING HERE IS ON SALES TAX BASE.

YOU KNOW, THERE'S 13 CITIES THAT ARE IN DART WHICH GIVE 1% OF THEIR SALES TAX TO DART.

BUT THERE'S CITIES LIKE GRAND PRAIRIE AS AN EXAMPLE, AND MESQUITE WHO DO NOT HAVE THAT.

SO THEY CAN TAKE THE 2%.

BUT WHAT WE'VE DONE HERE IS TO MAKE THIS APPLES TO APPLES SHOW WHAT IS 1% OF SALES TAX, WHAT ARE THESE CITIES GETTING? AND YOU CAN SEE GARLAND IS LAST ON THIS ON THIS ANALYSIS AT 184.

AND AN INTERESTING STATISTIC I WAS LOOKING AT YESTERDAY.

GARLAND IS THE 13TH LARGEST CITY IN THE STATE OF TEXAS.

WE HAVE HAD SUBSTANTIAL GROWTH IN SALES TAX THIS YEAR, BUT COLLECTIONS TO DATE, WE RANK 39TH IN THE STATE OF TEXAS.

OF THE 13 DART CITIES WERE SIXTH, RIGHT AHEAD OF FARMERS BRANCH, WHO HAS ABOUT 35,000 PEOPLE.

POPULATION. OUR POPULATION HAS ALSO BEEN TRENDING AT REALLY A MODEST LEVEL.

AND YOU CAN SEE MESQUITE IS THE ONLY OTHER ONLY CITY WITH A LOWER POPULATION GROWTH SINCE THE LAST CENSUS.

FORT WORTH WITH THE HIGHEST, BUT ON AVERAGE THE METROPLEX HAS SEEN ABOUT A 13.4% GROWTH IN POPULATION, AND GARLAND IS AT 6.7. SO THIS IS KIND OF THE SLIDE WE USED TO TO REALLY SHOW WHAT IS GARLAND'S CHALLENGE.

SO YOU TAKE PROPERTY TAX REVENUE WHICH IS OUR LARGEST REVENUE.

SALES TAX, WHICH IS OUR SECOND LARGEST REVENUE.

AND COMPARE THAT PER CAPITA.

SO PER PERSON IN EACH OF THESE CITIES.

GARLAND IS ABOUT 41% BELOW THE AVERAGE ON PROPERTY TAX REVENUE AND ABOUT 46% BELOW THE SALES TAX REVENUE FROM OUR METROPLEX PEERS.

AND WHAT THAT MEANS IS, IF WE WERE JUST AT THAT AVERAGE, THE CITY OF GARLAND WOULD COLLECT $88.3 MILLION MORE A YEAR IN SALES TAX AND PROPERTY TAX REVENUE.

NOW, ONE THING THAT WE HAVE DONE, AND WE HAVE THAT THESE CITIES DO NOT HAVE, IS WE HAVE AN ELECTRIC UTILITY WHO PAYS A RETURN ON INVESTMENT OF OVER $20 MILLION BACK TO THE GENERAL FUND.

AND WE HAVE A REGIONAL LANDFILL THAT HAS REALLY, REALLY HELPED THE CITY OF GARLAND OVER THE LAST THREE YEARS AND BRINGS IN ABOUT $20 MILLION A YEAR, WHICH CUTS THAT GARLAND CHALLENGE IN HALF.

SO WE DO HAVE SOME THINGS THAT OTHER CITIES DON'T HAVE, SO I DO WANT TO POINT THAT OUT.

BUT HAVING A MORE MODEST PROPERTY AND SALES TAX BASE IMPACTS OUR FUTURE REVENUE GROWTH IN ADDITION TO THE SB2 CAP.

SO THE IMPACT OF SB TWO ON PROPERTY TAX REVENUE, MATT GOT INTO THIS A LITTLE BIT.

JUST SOME MORE CONTEXT.

SO SB TWO ONLY CAPS THE NO PORTION OF THE TAX RATE, NO CAP ON DEBT SERVICE.

OUR TAX RATE CURRENTLY IS SPLIT 46%.

GOING TO THE NO SIDE, WHICH IS YOUR GENERAL FUND, AND 55% OF IT GOING TO THE DEBT SERVICE FUND WHICH SERVICES THE DEBT ASSOCIATED WITH OUR CAPITAL IMPROVEMENT PROGRAM.

SINCE 2020, WE'VE FOREGONE ABOUT 19 MILLION IN ANNUAL REVENUE DUE TO SB TWO.

AND JUST TO PUT THAT IN CONTEXT $0.01 TAX RATE INCREASE GENERATES APPROXIMATELY $2.3 MILLION IN REVENUE AND COST THE AVERAGE TAXPAYER, WITH A HOMESTEAD ABOUT $9.

ADDITIONAL PER YEAR PER 100,000.

SO WITH OUR AVERAGE HOME VALUE BEING AROUND 300,000, THAT MAKES THAT AROUND $18 ADDITIONAL PER YEAR.

AND THAT COULD FUND ADDITIONAL POSITIONS FOR THE GENERAL FUND.

SO JUST PUT THAT IN CONTEXT OF HOW MANY POSITIONS AND ANNUAL LOSS WE'VE FORGONE SINCE THE SB2 CHANGE.

DUE TO SB2, WE ARE HAVING TO RELY ON MORE OF OUR OTHER REVENUES.

AS MATT WAS POINTING OUT, WE BENEFIT FROM HAVING THE ELECTRIC UTILITY FUND AS WELL AS OUR REGIONAL LANDFILL.

[01:25:07]

BUT EXPANDING SERVICES IN THE FUTURE MAY REQUIRE NEW USER FEES OR INCREASED FEES TO PARTIALLY OFFSET THE COST TO OPERATE AND DIVERSIFY. DIVERSIFICATION IN THE GARLAND SALES TAX BASE NEEDS TO BE A PRIORITY THROUGH REDEVELOPMENT IN GENERAL.

FOR FY 25, WE'RE SEEING A LEVELING OFF OF A LOT OF OUR HISTORIC REVENUES, PARTICULARLY OUR DEVELOPMENT PROCESS RELATED REVENUES, WHICH REALLY SKYROCKETED TO KIND OF HISTORIC AVERAGES OVER THE PAST THREE YEARS.

WE'RE SEEING A RETURN TO OUR PRE-PANDEMIC NORM AND KIND OF A LEVELING OFF OF PEOPLE GOING THROUGH THE DEVELOPMENT PROCESS AND GETTING BUILDING PERMITS AS COMPARED TO WHAT WE'VE SEEN, PARTICULARLY THE LAST TWO YEARS.

SO ALL OF THAT HAS TO BE TAKEN INTO CONSIDERATION WHEN YOU'RE LOOKING AT ADDING ONGOING COSTS TO THE GENERAL FUND, BECAUSE WE NEED TO HAVE THAT ONGOING REVENUE GROWTH AND EXPANSION TO SUPPORT THOSE INCREASED SERVICE LEVELS.

MOVING INTO THE EXPENDITURE SIDE TO TALK ABOUT HOW OUR MODEST RESOURCES IMPACT HOW QUICKLY WE CAN EXPAND SERVICE LEVELS, HISTORICALLY, WE'VE HAD TO TAKE OUR TIME, ALTHOUGH IT'S A PRIORITY OF STAFF AND A PRIORITY TO COUNCIL, TO INCREASE OUR SERVICE LEVELS, TO BE MORE COMPETITIVE WITH OUR METROPLEX CITIES, WE'VE GIVEN GIVEN OUR. REVENUE BASE, IT JUST TAKES US A LITTLE BIT LONGER TO DO THAT.

AND ANY GIVEN YEAR WE DON'T.

EVEN ON OUR GOOD YEARS, PRE THE LAST FEW YEARS, WE WERE LUCKY TO HAVE ABOUT A MILLION IN ONGOING.

AVAILABLE REVENUE THAT COULD BE ADDED TO NEW POSITIONS OR NEW SERVICE LEVELS AFTER JUST TAKING CARE OF WHAT WE CALL OUR BASE BUDGET, BASE OPERATIONS AND EXISTING PERSONNEL COSTS.

SO WE'VE OPERATED HISTORICALLY ON A ON A TIGHTER FINANCIAL CONSTRAINTS THAN OTHER OUR OTHER PEER CITIES.

AND WE DO ANTICIPATE TO SEE THOSE CONTINUE INTO THE FUTURE.

GIVEN OUR EXISTING BASE AND JUST A POTENTIAL SLOWDOWN OF OUR REVENUES FROM WHAT WE'VE SEEN IN THE PAST COUPLE OF YEARS.

SO HOW THAT IMPACTS US IS AS WE GO TO IMPLEMENT SOME OF THESE MAJOR MASTER PLANS THAT WE HAVE ON THE HORIZON.

IT TAKES US LONGER TO DO THAT OR IT HAS TO BE DONE YOU KNOW, PRIORITIZING ONE EACH YEAR AND THEN MAYBE COMING BACK AND ADDRESSING THE OTHERS IN A FOLLOWING YEAR FOR OUR FIRE MASTER PLAN, FOR EXAMPLE, WITHIN THE NEXT FIVE YEARS, WE'RE PROJECTING, ADDING THREE PLUS APPARATUS AND REQUESTING 80 TO 90 POSITIONS OVER THE NEXT TEN YEARS AS A RESULT OF THAT MASTER PLAN.

ON A GOOD YEAR IN THE GENERAL FUND, WE TYPICALLY HAVE ENOUGH ONGOING CAPACITY TO MAYBE ADD 8 TO 10 POSITIONS, AND THAT'S ON A REALLY GOOD YEAR ON A MORE LEAN YEAR. WE'RE LUCKY TO MAYBE ADD FOUR BECAUSE IT'S AN ONGOING COST.

THE PERSONNEL WILL CONTINUE, THE PERSONNEL COST WILL CONTINUE TO INCREASE EACH YEAR, AND YOU DON'T WANT TO FUND A POSITION IN ONE YEAR.

HIRE SOMEBODY AND NOT BE ABLE TO FUND THEM IN FUTURE YEARS.

ADDITIONALLY, WE HAVE OUR IT CYBERSECURITY PLAN, WHICH HAS INCREASED OUR INVESTMENT IN SOFTWARE AND SERVER CAPACITY TO PROTECT OUR CITY'S SYSTEMS AND OPERATIONS AND INFORMATION THAT HAS HAD AN IMPACT ON THE OPERATING BUDGET FOR ALL FUNDS.

AND THEN FINALLY, JUST A FEW EXAMPLES OF OTHER MASTER PLANS WITH OUR PARK SYSTEM, CULTURAL ARTS, AND OUR LIBRARY MASTER PLAN.

THIS IS AN EXPANSION OF SERVICE LEVELS AND OFFERINGS OVER TIME, BASED ON COMMUNITY INPUT AND METROPLEX COMPARISONS THAT WILL HAVE TO BE PRIORITIZED AND ADDRESSED SLOWLY OVER TIME THROUGH FINDING REVENUE SOURCES TO SUPPORT THOSE OR FINDING OTHER INCREASES IN OUR REVENUE BASE TO CONTINUE THOSE IMPLEMENTATIONS.

AND THEN THE OTHER MAJOR COST DRIVER FOR US IS THE ROLLOUT AND IMPACT OF THE 2019 BOND PROGRAM.

THE 2019 BOND PROGRAM WAS IN THEIR CAPITAL IMPROVEMENT PROGRAM.

IT'S EXPANDING A LOT OF OUR CURRENT FACILITIES OR BUILDING NEW FACILITIES FOR OUR RESIDENTS TO ENJOY.

I HAVE A FEW EXAMPLES UP HERE ON THE SLIDE, BUT ADDITIONAL STAFF IS TYPICALLY REQUESTED TO OPERATE THOSE NEW OR EXPANDED FACILITIES, AS WELL AS ADDITIONAL OPERATING DOLLARS FOR THESE FACILITIES UP HERE ON THE SLIDE.

ALL OF THESE ARE ANTICIPATING AND PROJECTING TO ASK FOR STAFF OVER THE NEXT THREE YEARS TO EXPAND AT A NEW SERVICE LEVEL AND A NEW CAPACITY.

SO ALL OF THESE PRIORITIES WILL HAVE TO BE WEIGHED OVER THE COURSE OF THIS YEAR AND THE NEXT 5 TO 10 YEARS.

SO AS THE COUNCIL WAS DISCUSSING EARLIER IN TERMS OF THEIR STRATEGIC PRIORITIES, PRIORITIES AND THEIR FOCUS AREA, IT'S ALL ITS BALANCING ACT OF EQUALLY IMPORTANT NEEDS AND CONSIDERATIONS THAT WE HAVE LIMITED RESOURCES TO ADDRESS.

[01:30:09]

AND REALLY WHAT IT IS, IS WE'RE UTILIZING OUR DEBT SERVICE TAX RATE TO BE CREATIVE TO OFFSET STREET FUNDING.

WE ISSUE SHORT TERM DEBT INSTRUMENT CALLED A TAX NOTE, WHICH WE CALL IN SIX MONTHS, MEANING IT'S SIX MONTHS WORTH OF INTEREST AND WE PAY THAT OFF TO FUND OUR STREETS PROGRAM, WHICH IS GOING TO BE A BIG TOPIC IN THE DISCUSSION TODAY.

BUT THAT IS ONE WAY WE'VE DONE THAT.

SO WHAT I'M SHOWING HERE IS WHEN YOU LOOK AT TAX SUPPORTED LONG TERM DEBT, THE CITY OF GARLAND IS AT $1,495 PER PER CAPITA.

THE AVERAGE IS OVER $2,000 PER CAPITA.

AND I WILL POINT OUT GRAND PRAIRIE ONCE AGAIN HERE.

THEY HAVE UTILIZED THEIR DEBT SERVICE TO DO SOME ECONOMIC DEVELOPMENT ACTIVITY, WHICH WE'LL TALK ABOUT LATER TO TRY TO INVEST IN THE COMMUNITY, WHICH SHOWED THAT THEIR TAX BASE WAS, WAS WAS GROWING.

SO THEIR ONE CITY THAT IS MOVING UP THAT LIST.

AND I WILL SAY THAT WHY I'M BRINGING THEM UP IS BASED ON THE DECISIONS MADE TODAY.

YOU WILL SEE GARLAND MOVE UP THAT LIST.

AND IN THIS NEXT SLIDE WE'LL TALK A LITTLE ABOUT BOND RATINGS AND THE IMPLICATIONS OF THAT.

BUT IN GENERAL RIGHT NOW WE WE OUR DEBT SERVICE IS ON THE LOWER END OF THE SPECTRUM FOR FOR THE METROPLEX.

SO HOW DOES GARLAND CHALLENGE IMPACTED BOND RATINGS? WE WE SAW AN IMPACT THIS YEAR ON OUR BOND RATING WITH FITCH.

SO WE PREVIOUSLY WERE RATED A+ BY STANDARDS AND POOR S&P AND TRIPLE-A BY FITCH.

AND ONE THING I WANT EVERYONE TO KNOW IS WE TYPICALLY AS FAR AS THE COST OF BORROWING, THE INTEREST WE PAY ON OUR DEBT, THEY ALWAYS TAKE THE LOWEST RATING.

SO WE WERE DOUBLE A PLUS WITH S&P, WHICH MEANS WE'RE ALWAYS PRICED AS A DOUBLE A PLUS CITY.

BUT THIS IS THIS FLOWS INTO THE GARLAND CHALLENGE BECAUSE IT WITH FITCH WITH THEIR TRIPLE A RATING.

THEY DOWNGRADED US TO A DOUBLE A PLUS THIS SPRING.

AND WHY THEY DID THIS IS THEY CHANGED THEIR RATING CRITERIA.

THERE IS ALWAYS A A WEIGHTING OF YOUR FINANCIAL BASE OR YOUR ECONOMICS INSIDE OF ANY BOND RATING.

AND THAT IS WHY WE'RE DOUBLE A+ WITH S&P.

IF YOU READ THROUGH THE REPORTS OF S&P, THEY WILL STATE THAT WE HAVE A MODEST ECONOMY AND THAT WE HAVE THAT WE HAVE WEAK MEDIUM INCOME COMPARED TO THE OTHER PEOPLE THAT ARE RATING. BUT WE MAKE UP FOR A LOT OF IT.

ON THE OTHER SIDE OF SOUND GOVERNANCE AND FINANCE, WE DO OUR BEST TO ENSURE THAT WE ARE NOT OVEREXTENDING OURSELVES WITH DEBT, AND WE TRY TO KEEP AMPLE RESERVES OR LIQUIDITY TO TO TAKE ON CHALLENGES.

SO WE'RE REALLY GOOD AT RESPONDING TO RECESSIONS, WHICH IS WHY WE WERE MOVED UP TO TRIPLE A IN THE FIRST PLACE BY FITCH BECAUSE OF OUR GOOD MANAGEMENT PRACTICES.

BUT WITH THIS RATING CHANGE, WHAT BASICALLY HAPPENED WAS, IS FITCH STARTED WEIGHTING WHAT THEY CALLED DEMOGRAPHICS AND ECONOMIC STRENGTHS 44% OF THE TOTAL, WHICH MEANS THE THINGS I HAVE IN MY CONTROL OF FINANCIAL RESILIENCY AND LONG TERM LIABILITY ONLY MAKE UP, YOU KNOW, ROUGHLY 56%.

SO MOVING DOWN THAT LIST THAT HERE'S I'VE PROVIDED THE PERCENTAGE AND HOW THEY RATED US POPULATION TREND IS 8% OF THAT.

THEY RATED US WEAK, WHICH GOES BACK TO THAT POPULATION SLIDE.

I SHOWED EARLIER THAT WE KIND OF HAVE A VERY MODEST GROWTH IN OUR OUR POPULATION UNEMPLOYMENT RATE, WHERE WE'RE PRETTY MUCH RIGHT ON PAR WITH THE NATION HERE. SO IT WAS RATED AS MID-RANGE POPULATION AND PERCENTAGE OF POPULATION WITH A BACHELOR'S DEGREE OR HIGHER, 9%.

AND I WILL SAY THAT THROUGH OUR FINANCIAL ADVISORS BACK LAST YEAR, THEY ASKED FOR SOME INPUT ON THIS RATING CRITERIA.

AND THIS IS THE ONE THAT WE WE, WE REALLY HAD A LOT OF QUESTIONS ABOUT AND HOW THAT FACTORS INTO THE ECONOMY.

BUT THEY LEFT IT IN AND IT'S 9% BECAUSE OUR BECAUSE OUR POPULATION WITH A BACHELOR'S DEGREE OR HIGHER IS LOWER THAN THEIR, THEIR BENCHMARKS. THEY RATED US AS WEAK MEDIAN HOUSEHOLD INCOME.

THEY RATED US AS WEAK POPULATION SIDE AND DIVERSIFICATION STRONG.

WE DO HAVE A VERY DIVERSE POPULATION, WHICH THEY TOOK ACCOUNT FOR, BUT YOU CAN SEE IT'S ONLY 4.5% ECONOMIC CONCENTRATION BECAUSE WE'RE IN THE DALLAS

[01:35:08]

SO LOOKING FORWARD I DO NOT ANTICIPATE AND OUR FINANCIAL ADVISORS DO NOT ANTICIPATE ANY MORE ERODING OF OUR BOND RATINGS DUE TO THIS DEMOGRAPHIC AND ECONOMIC STRENGTHS CATEGORY.

BUT WHAT ARE SOME CHALLENGES THAT ARE FACING IN THE FUTURE? ONE BIG RATING CRITERIA FOR ALL RATING AGENCIES IS HOW MUCH LONG TERM LIABILITY DO YOU HAVE AS A PERCENTAGE OF YOUR OPERATING REVENUE? CURRENTLY, WE'RE AT ABOUT 167.3, AND THE MID RANGE AREA WHERE YOU DON'T REALLY WANT TO PUSH IS 175 TO 200.

YOU GET OVER 200.

YOU'LL PROBABLY BE IN THE AREA OF BEING RATED AS WHAT THEY CALL WEAK LEGISLATIVE IMPACTS ON REVENUE AND EXPENDITURES.

THIS HAS BEEN THE BIGGEST ONE OVER THE LAST TEN YEARS.

WE TALKED ABOUT SENATE BILL TWO.

THEY ARE ALSO DOING A LOT OF REGULATIONS ASSOCIATED WITH HOW WE ISSUE DEBT AND HOW WE CAN ACTUALLY GO, GO OUT AND, AND, AND DO THE THINGS THAT ARE NECESSARY FOR STREETS AND OUR FACILITIES.

AND THEN ON TOP OF THAT, NON TRADITIONAL FINANCING HAS BECOME A BIG TOPIC.

AND WHAT THAT MEANS IS AND WHAT WE MEAN BY CONTINGENT DEBT IS ISSUING DEBT FOR FOR PRIVATE SECTOR ACTIVITIES.

WE HAVE TO BE CAREFUL ON HOW THOSE ARE STRUCTURED AND ALSO WITH PRIVATE PLACEMENT DEBT, WHAT WHAT A PRIVATE PLACEMENT DEBT IS, IS BASICALLY GOING OUT AND ISSUING DEBT WITHOUT GETTING A BOND RATING.

BOTTOM LINE, MODEST PROPERTY AND SALES TAX BASE.

WE HAVE A HIGH TAX RATE.

WE HAVE LOW POPULATION GROWTH AND WE ARE APPROACHING BUILD OUT.

FUTURE REVENUE GROWTH WILL BE IMPORTANT JUST TO CONTINUE OUR CURRENT SERVICE LEVELS AS ALISON WENT THROUGH.

AND ECONOMIC DEVELOPMENT NEEDS TO FOCUS ON REDEVELOPMENT BECAUSE WE'RE AT BUILD OUT REDEVELOPMENTS, THE NAME OF THE GAME, AND WITHOUT SUFFICIENT REVENUE GROWTH, THE FUTURE HOLDS SOME CHALLENGING DECISIONS REGARDING TRADE OFFS, WHICH IS WHY WE'RE HERE TODAY.

WITH THAT, WE'LL TAKE ANY QUESTIONS.

ANY QUESTIONS ON THIS SECTION? MAYOR PRO TEM MOORE.

SO I GUESS TO A CERTAIN EXTENT, YOU'RE SAYING WE ARE FACING SOME TROUBLES AS IT RELATES TO OUR SPENDING.

I DIDN'T HEAR ANYTHING AS IT RELATED TO HOW WE HOW TAKING THE ARPA FUND SITUATION, BEING CREATIVE WITH THAT IS IMPACTING ALSO WHAT WE'RE OUR FINANCIAL SITUATION.

CAN YOU TALK A LITTLE BIT ABOUT THAT? ARPA WAS AN AMAZING THING.

WE, YOU KNOW, 50 MILLION PLUS OF REVENUE FROM THE FEDERAL GOVERNMENT.

AND WE HAVE USED THAT CREATIVELY TO TRY TO TO PUT ON THE GROUND OUR CIP PROJECTS AND COMBAT THE INFLATION WE HAVE SEEN ON OUR CIP PROJECTS.

BUT THE BIGGEST THING WITH ARPA IS IT'S ONE TIME.

ONCE IT'S SPENT, IT'S GONE.

OUR CONCERN IS OUR ONGOING REVENUES AND OUR OPERATIONS.

WE HAVE TO BE ABLE TO MAINTAIN REVENUE GROWTH TO KEEP OUR CURRENT SERVICES MOVING, TO CONTINUE TO TO GROW PUBLIC SAFETY. ALL OF THOSE THINGS THAT YOU WERE LISTING AND TALKING ABOUT ON OUR VISION, WE HAVE TO HAVE SUSTAINABLE, LONG TERM REVENUE GROWTH TO ENSURE THAT WE ARE PROVIDING MERIT INCREASES TO OUR EMPLOYEES.

THAT HEALTH INSURANCE IS COVERED.

BUT WHEN YOU'RE CAPPED WITH YOUR LARGEST REVENUE AT 3.5% OFF OF WHAT IS PRESUMABLY AN ARBITRARY INFLATION NUMBER, IT DOES MATCH CLOSELY TO WHAT THE CONSUMER PRICE INDEX IS.

BUT WHEN YOU'RE TALKING ABOUT CONCRETE, WHICH WE'LL TALK ABOUT LATER IN THE STREETS, WHICH HAS BEEN SEEING 20% OR HIGHER GROWTH.

HEALTH INSURANCE TRENDS AT 6.8%.

WE KNOW THE COMPETITIVE NATURE OF TRYING TO GET POLICE OFFICERS.

3.5% ISN'T GOING TO CUT IT.

WE'RE GOING TO HAVE TO FIND OTHER WAYS TO GROW OUR BASE.

AND IT SOUNDS LIKE YOU'RE SAYING THAT WE'RE GOING TO HAVE TO FACE A PROBLEM OF RAISING TAXES IN SOME TYPE OF WAY.

SO HOW ARE WE GOING TO DO THAT IF WE'RE CAPPED AT THREE AND A HALF? WELL, YOU WOULD JUST YOU WOULD HAVE TO GO TO THE VOTERS TO RAISE A TAX RATE.

AND I'M NOT NECESSARILY SAYING RAISE THE TAX RATE.

I'M JUST SAYING WE'RE GOING TO HAVE TO FIND WAYS TO INVEST IN OUR COMMUNITY THAT IS GOING TO HELP DRIVE THAT TAX BASE UP.

[01:40:02]

THEY HAVE USED SOME OF THEIR ECONOMIC DEVELOPMENT MONEY TO TO INVEST IN THEIR COMMUNITY ON THE DEBT SERVICE SIDE, WHICH IS NOT CAPPED, AND STRATEGICALLY USE THAT TO DRIVE MORE SALES TAX, MORE PROPERTY TAX.

AND THERE'S A MILLION DIFFERENT WAYS TO RAISE REVENUE FOR THESE NEW PROGRAMS. IS IS GOING TO HAVE TO BE A COMBINATION OF ALL OR ARE YOU GOING TO TALK ABOUT SOME OF THOSE TODAY? NOT TODAY.

YEAH. I THINK YOU'VE GIVEN US ENOUGH TO THINK ABOUT.

THANK YOU, MR. MAYOR. VERY GOOD.

COUNCILMEMBER BASS.

I LIKED THANK YOU VERY, VERY DECISIVE ANSWER.

NOT TODAY.

IT WASN'T A NO.

IT'S JUST NOT RIGHT NOW.

GO AHEAD. SO IT'S.

AND TO TO MAYOR PRO TEM POINT.

SO THE TAX RATE IS MERELY ONE PART OF A FORMULA.

THE ANSWER TO THE FORMULA IS THE ANSWER WE'RE TRYING TO GET AT, RIGHT, IS THE NUMBER THAT'S GOING TO TAKE TO KEEP OUR CITY RUNNING AND ABOVE WATER.

THE TAX RATE ON THE OTHER SIDE OF THAT EQUATION IS MERELY ONE PART OF THE FORMULA.

WHAT WE'RE TASKED WITH, WHAT I'M WHAT I TASKED MYSELF WITH IS WHAT CAN WE DO TO TO INCREASE THE FUNDS COMING IN WITHOUT ADJUSTING THAT TAX RATE? BECAUSE THAT TAX RATE IS WHAT AFFECTS OUR CITIZENS MOST DIRECTLY.

AND SO THE CHALLENGE IS HERE IS WHAT CAN WE DO TO AFFECT OTHER PARTS OF THAT FORMULA, WHICH, AS MATT WAS SAYING, WE'RE NOT GOING TO GET INTO THAT TODAY. BUT, YOU KNOW, THAT'S THE BEST WAY TO TO RAISE MORE FUNDS WITHOUT DIRECTLY AFFECTING YOU KNOW, OUR CITIZENS WITH A HIGHER TAX RATE.

THAT BEING SAID, MY QUESTION IS THIS MATT ON HERE? I KNOW GRAND PRAIRIE DOESN'T CONTRIBUTE TO DART.

WHAT OTHER COMPARISON CITIES ON HERE HAVE THE BENEFIT OF THAT NOT CONTRIBUTING THAT 1% TO DART.

SO THAT WOULD BE FORT WORTH.

MESQUITE, ARLINGTON AND GRAND PRAIRIE.

OKAY. THANK YOU.

OKAY. COUNCILMEMBER WILLIAMS. THANK THANK YOU, MAYOR.

SO YOU DON'T HAVE TO HIT ME.

SENATOR, I HEARD YOU WHEN YOU ANSWERED THAT QUESTION, SO I'LL STAY AWAY FROM THAT.

OKAY. IN IN SLIDE COMBINED TAX REVENUE PER CAPITA.

AND YOU'RE PROBABLY GOING TO GIVE ME THE SAME ANSWER.

THE VERY BOTTOM YOU TALK ABOUT DIVERSIFICATION OF SALES TAX BASE, MATT.

IT'S AT THE BOTTOM OF ONE OF THOSE SLIDES.

OKAY. I GUESS I WILL GO AHEAD AND SAY WELL DO YOU WANT TO GET IN? SURE, I CAN GET INTO THAT.

SO WHAT DO WE MEAN BY DIVERSIFICATION WHEN YOU LOOK AT OUR SALES TAX BASE, WE ARE OUR BASE IS HEAVILY DRIVEN ON THE NECESSITIES.

AND WHAT I MEAN BY THAT IT IS GARLAND RESIDENTS GOING TO THE GROCERY STORE, GARLAND RESIDENTS GOING AND DOING THE THINGS YOU HAVE TO DO JUST TO TO SURVIVE QUALITY OF LIFE THINGS.

AND WHEN YOU LOOK AT THE OTHER CITIES, THEY HAVE A SALES TAX BASE THAT HAS A LARGER COMPONENT ON RETAIL INDUSTRIES OF DESTINATIONS.

SO I MENTIONED IN GRAND PRAIRIE THEY HAVE EPIC.

ARLINGTON HAS EVERY MAJOR SPORTS PROGRAM, EVERYTHING GOING ON TO TRY TO DRIVE THAT.

PLANO HAS, YOU KNOW, THE SHOPS OF LEGACY, THOSE TYPES OF THINGS THERE.

THEY HAVE A SALES TAX BASE THAT IS MORE REGIONAL.

I WOULD SAY THEY'RE BRINGING IN.

THEY HAVE THINGS THAT ARE BRINGING IN PEOPLE FROM OUTSIDE.

I'M NOT SAYING THAT PEOPLE DON'T COME IN FROM THE OUTSIDE, FROM GARLAND.

I'M JUST SAYING THAT OUR BASE IS MOSTLY MADE UP OF THE NECESSITIES, THINGS YOU HAVE TO HAVE.

SO WHAT I'M HEARING THERE IS THIS DIRECT LINK IN OUR ECONOMIC DEVELOPMENT STRATEGIC PLAN.

THAT'S AM I CORRECT? OKAY. ALL RIGHT.

AND SECONDLY I THINK JEFF MENTIONED ABOUT ASKING YOU ABOUT THIS, THE DART PARTICIPATION CITIES.

I'M AWARE OF SOME CITIES, IN FACT, AS RECENTLY AS THIS, THIS WEEK HAVE MADE SOME MOVES ON THAT $0.01 SALES TAX.

TO YOU AND MR. CITY. MR. CITY CITY MANAGER, ANY ANY THOUGHTS WITHOUT GETTING AHEAD OF OURSELVES ON THAT PARTICULAR TOPIC? AS FAR AS I'M NOT TALKING ABOUT DOT PARTICIPATION OR NOT, I'M NOT TALKING ABOUT THAT.

BUT I'VE NOTICED SOME OTHER CITIES ARE MAKING MOVES ON THAT ONE.

SENT YOUR THOUGHTS? CAN YOU SHARE YOUR THOUGHTS OR IS MR..

MR.. CITY ATTORNEY HE'S GOING TO PUSH THE BUTTON ON ME.

[01:45:02]

SHOULD WE HOLD THAT, MR. CITY? I WOULD SAY THAT THAT PARTICULAR TOPIC IS IT'S AGENDA ADJACENT.

OKAY. OH, THAT SOUNDS LIKE A YEAH, I DON'T.

THAT'S MY ADVICE. I'LL TAKE THAT.

FOR WHAT IT'S WORTH. IT'S RELEVANT.

SO I WOULD SAY YES. IF WE'RE GOING TO TALK ABOUT IT, LET'S DO IT ON A VERY SHALLOW LEVEL AND AND THEN MOVE ON AND I'LL.

YEAH, I'LL ANSWER THE QUESTION FROM A FORM OF GROWING REVENUE BASE.

OBVIOUSLY BY LOWERING THAT 1% WE RECEIVE MORE REVENUE.

I THINK WHAT'S OUT THERE IS A 25% REDUCTION.

THAT'S ABOUT $11 MILLION TO THE CITY OF GARLAND.

HOWEVER, WITH EVERYTHING WE DO, I SAY IT A LOT.

WE THOUGHT, YOU ARE GOING TO HAVE TO ROB PETER TO PAY PAUL.

WHAT I WHAT NEEDS TO BE LOOKED AT IN THAT IS HOW THAT IMPACTS DART.

IN MY OPINION, LOSING, YOU KNOW, ONE FOURTH OF OUR REVENUE WOULD DESTROY US.

I DON'T KNOW WHAT THAT LOOKS LIKE FOR DART, AND I KNOW SOME OTHER CITIES ARE PASSING RESOLUTIONS TO TO LOOK INTO THAT, BUT I THINK THAT NEEDS TO BE A, A NEEDS TO BE DIVED IN VERY DEEPLY TO ENSURE THAT DART IS SUSTAINABLE AND THAT DART IS STILL ABLE TO DO WHAT IT'S THERE TO DO.

NOW, I'LL JUST ADD A COUPLE POINTS TO THAT TOO.

IF YOU NOTICED IN OUR CITIZEN SURVEY, WHAT RECEIVED SOME OF THE HIGHEST RANKS WERE MOBILITY AND A LOT OF I SHOULDN'T SAY A LOT, BUT ABOVE ABOVE OUR BENCHMARKS IN TERMS OF NOT JUST THE QUALITY BUT THE NUMBER OF PEOPLE USING DART WAS HIGHER THAN OUR BENCHMARKS. AND SO WE WE HAVE A DEMOGRAPHIC THAT HEAVILY RELIES ON DART.

THE OTHER THING IS THAT YOU KNOW, THERE'S THERE'S SOME CONNECTION BETWEEN ECONOMIC DEVELOPMENT AND DART, AT LEAST IN OUR REALM.

AND SO I THINK WE'RE APPROACHING THIS VERY CAUTIOUSLY AND CONSERVATIVELY, WANTING TO SEE THAT ALL SIDES OF HOW THIS IS GOING TO PAN OUT.

SO WOULD I LIKE THE EXTRA TEN, $11 MILLION A YEAR THAT WOULD, YOU KNOW, THAT QUARTER PERCENT REPRESENTS? ABSOLUTELY. BUT YOU KNOW, WHAT IS THE WHAT IS THE COST? IT COMES WITH SO I THINK IT'S A IT'S A TOPIC WORTHY OF FURTHER DISCUSSION, SO I THINK.

ARE WE OKAY, MR. TURNER? THANK YOU SIR. AND LASTLY, YOU TALKED ABOUT HOUSING STOCK.

THAT'S BEEN ONE THAT'S BEEN HERE FOREVER AND OVER AND OVER AND OVER.

AND YOU TALKED ABOUT THE FACT THAT WE'RE PRETTY MUCH AT BUILD OUT.

AND YOU USED THE WORD REDEVELOPMENT.

SO HOW DO YOU WHAT ARE YOUR THOUGHTS? HOW DO YOU SEE THOSE THAT MESHING WITH THE FACT IS ON OUR HOUSING STOCK REDEVELOPMENT NEED? THERE'S A COST FOR THAT.

BUT WHAT ARE YOUR WHAT ARE YOUR THOUGHTS AS FAR AS THAT PIECE IN THIS PIE OF.

SURE. IN MY OPINION, OUR HOUSING STOCK IS WHAT IT IS.

WE'RE AN OLDER COMMUNITY, BUT THAT DOESN'T MEAN THAT WE'RE NOT A GREAT COMMUNITY.

FROM THE WE PASSED THAT ECONOMIC STRATEGIC PLAN.

AND TO ME, THAT NEEDS TO BE KIND OF OUR BIBLE OF MOVING FORWARD, OF HOW WE HOW WE GO ABOUT ENGAGING THE PRIVATE SECTOR TO BRING IN DEVELOPMENT HERE.

AND I THINK IT'S GOING TO HAVE TO BE, YOU KNOW, WE HAVE A GREAT ECONOMIC DEVELOPMENT TEAM LED BY ANDY HESSER.

AND THE FOCUS NEEDS TO BE ON, YOU KNOW, WHAT I SAY IS THE OLD JOHNNY CASH SONG, ONE PIECE AT A TIME.

IT'S ONE PARCEL AT A TIME, AND YOU'RE JUST GOING TO HAVE TO MAKE SURE YOU'RE YOU'RE GETTING THE RETURN ON INVESTMENT.

IT'S AN INVESTMENT IN THE COMMUNITY.

IT'S NOT A HANDOUT TO A DEVELOPER.

IT'S AN INVESTMENT IN THE COMMUNITY TO DRIVE PROPERTY TAX AND SALES TAX TOGETHER.

RIGHT, RIGHT. AND YOU ACHIEVED MOST OF THAT RIGHT THROUGH OWNERSHIP.

WHEN YOU TALK HOUSING CORRECT.

YOU'RE TALKING OWNERSHIP PROPERTIES.

RIGHT. SHOULD BE ONE OF THE KEYS NOT EXCLUSIVELY, BUT WE'RE TALKING ABOUT WHEN WE TALKED ABOUT THE THINGS THAT YOU AND ALISON HAVE TALKED ABOUT TODAY, WE'RE TALKING ABOUT OWNERSHIP. IS THAT RIGHT? WELL, FROM THE FINANCIAL PERSPECTIVE, I DON'T CARE WHO OWNS IT IF IT HAS HIGH.

NO, NO, NO I DON'T.

I DON'T CARE WHO OWNS IT.

I DON'T CARE WHO OWNS IT EITHER.

BUT I'M TALKING THAT SOMEBODY HAS TO OTHER THAN US.

CORRECT. OTHER THAN US.

OKAY, I SEE WHAT YOU'RE SAYING. OTHER THAN US.

YEAH. I'M SAYING SOMEBODY ELSE OWNING THE PROPERTY.

YES. OKAY. ALL RIGHT.

THANKS, SIR. THANK YOU.

MAYOR. VERY GOOD.

AND, MR. CITY ATTORNEY, YOU ARE GOING TO REGRET COINING THE AGENDA ADJACENT.

YEAH, I WROTE THAT DOWN.

THAT QUOTE. YEAH, YEAH.

SAY IT AGAIN. COUNCIL MEMBER LUCHT.

DEPUTY MAYOR PRO TEM.

EITHER WAY, WORKS. YEAH.

[01:50:02]

I HEAR THAT AND I'VE BEEN SAYING THIS FOR A LONG TIME.

REDEVELOPMENT AND INCREASING SALES TAX IS A TOP PRIORITY FOR OUR CITY TO BECOME BETTER.

AND I WANT TO KIND OF CIRCLE BACK TO THOSE VIBRANT NEIGHBORHOOD AND COMMUNITY CENTERS BECAUSE THAT'S WHERE PEOPLE SPEND MONEY.

SO IF I THINK ONE OF THE OTHER CHARGES FOR REDEVELOPMENT IS MANAGING EXPECTATIONS OF BUSINESS OWNERS AND ENCOURAGING THEM TO PARTICIPATE IN REDEVELOPMENT OPPORTUNITIES AND, AGAIN, NOT NOT MAKING THE CITY FIT THE BILL FOR ANY ANYTHING THAT HAPPENS.

I THINK THAT'S A REALLY AN INCREDIBLY DIFFICULT CHARGE.

GETTING PEOPLE GETTING BUSINESSES IN HERE THAT TYPICALLY HAVE SAID NO TO US.

SO GOOD LUCK AND I'LL, WE'LL BE THERE TO HELP IN ANY WAY WE CAN.

BUT I THINK THAT THAT'S REALLY AND PEOPLE HAVE BEEN ASKING FOR THAT FOR, FOR A LONG TIME WHERE ARE OUR WHOLE FOODS, WHERE ARE OUR SPROUTS, WHERE ARE OUR YOU KNOW, WE HAVE GROCERY STORES ALL AROUND, BUT ARE THEY THE GROCERY STORES THAT PEOPLE WANT TO GO TO? WELL, IT LOOKS LIKE MAYBE.

NO, THEY ARE NOT. SO I REDEVELOPMENT IS A HUGE, HUGE PART OF HOW WE WILL INCREASE THAT SALES TAX BASE.

AND I THINK THAT LOOKING AT THOSE VIBRANT NEIGHBORHOOD AND COMMUNITY CENTERS IS A GREAT WAY TO KIND OF START WITH THAT.

THANK YOU. VERY GOOD.

ANY ADDITIONAL QUESTIONS COMMENTS ON THIS SECTION.

SEEING NONE.

THANK YOU. AND WE WILL MOVE TO ITEM SEVEN.

[7. Presentations on Long-Term Funding Initiatives (Part 1 of 2)]

ITEM SEVEN OBVIOUSLY HAS MULTIPLE PIECES AND PARTS.

WE STILL HAVE A LITTLE BIT ON SIX.

OH OH, OKAY.

SORRY. WE GOT TO A SLIDE THAT SAID QUESTIONS.

THERE YOU GO. SORRY.

GO AHEAD. SORRY FOR THE CONFUSION.

WE BROKE SIX AND TWO PARTS ARE LOOKING AT THE LONG TERM.

AND NOW WE'LL CHANGE GEARS AND LOOK AT THE MOST UPCOMING YEAR, OUR NEXT FISCAL YEAR, FY 25, TO EXPAND ON MATT'S NOT RIGHT NOW OR NOT TODAY. THERE'S A REASON FOR THAT.

WE'RE AT A UNIQUE POINT IN THE BUDGET PREPARATION PROCESS.

SO WE'VE GONE THROUGH THE CITY MANAGER'S REVIEW WITH ALL OF OUR VARIOUS DEPARTMENTS, AND OVER THE NEXT COUPLE OF WEEKS, THE CITY MANAGEMENT TEAM WILL BE REVIEWING ALL OF THOSE REQUESTS. REQUESTS ONE MORE TIME, LOOKING AT OUR AVAILABLE RESOURCES AND MAKING THOSE PRELIMINARY DETERMINATIONS, WHICH GO INTO THE PROPOSED BUDGET THAT YOU ALL WILL SEE IN AUGUST.

SO WHILE WE HAVE SOME INFORMATION AND A FEW DECISIONS MADE, WE'RE STILL KIND OF AT THE BEGINNING OF ALL OF THOSE DECISIONS THAT ACCUMULATE TO DELIVER YOU ALL A PROPOSED OPERATING BUDGET.

SO EVERYTHING YOU'RE GOING TO HEAR ME SAY TODAY IS PRELIMINARY.

GIVEN THE TIME OF THE SUMMER WE ARE.

SO PLEASE TAKE TAKE ALL OF THIS INFORMATION AS IT IS.

OUR ESTIMATES BASED ON THE BEST INFORMATION WE HAVE AT THIS TIME IN THE SUMMER.

SO THAT APPLIES TO OUR PROPERTY TAX BASE.

SO AS YOU CAN SEE HERE, THIS GRAPH SHOWS YOU OUR CERTIFIED PROPERTY TAX BASES BACK TO 20 2014, WITH OUR MOST RECENT CERTIFIED PROPERTY TAX BASE OF 24.1 BILLION.

BASED ON THE PRELIMINARY ESTIMATED VALUE REPORTS WE'VE RECEIVED FROM THE APPRAISAL DISTRICT TO DATE, WE ARE LOOKING AT A PRELIMINARY PROPERTY TAX BASE OF 26.1 BILLION.

AS YOU ALL KNOW THIS PROPERTY TAX BASE IS NOT CERTIFIED UNTIL JULY 25TH.

BUT AS WE MOVE OVER THE COURSE OF THE SUMMER, WE'LL HAVE BETTER ESTIMATES ON WHAT THAT EXACT VALUATION MAY BE.

THAT INCREASE IS AN 8.5% PROJECTED INCREASE FROM THE 2023 CERTIFIED PROPERTY TAX BASE.

WE ARE SEEING, A LOWER INCREASE COMPARED TO WHAT WE'VE EXPERIENCED THE PAST TWO YEARS.

THE PAST TWO YEARS, WE'VE HAD REMARKABLE YEARS OF INCREASES IN THE DOUBLE DIGITS, WHICH HAS YOU KNOW, REALIZED SOME WITH NEW CONSTRUCTION ON THE GENERAL FUND SIDE, BUT HAS REALLY ASSISTED US ON THE DEBT SERVICE SIDE WITH OUR CAPITAL IMPROVEMENT PROGRAM, WITH OUR BOND PROGRAMS AND THE INFLATION WE'VE EXPERIENCED ON THOSE, TO BE ABLE TO CONTINUE THOSE PROGRAMS AND PROJECTS WITHOUT DISRUPTION FOR THIS UPCOMING YEAR, WE ARE PROJECTING AN 8.5% INCREASE

[01:55:07]

OUR PRELIMINARY NEW CONSTRUCTION IS PROJECTED TO BE 262 MILLION.

THIS IS LOWER THAN LAST YEAR'S NEW CONSTRUCTION OF 334 MILLION, WHICH WAS A RECORD FOR US IN THE PAST TEN YEARS.

WE ARE ANTICIPATING THAT WILL CONTINUE IN THE $200 MILLION RANGE, AS WE HAVE REALLY SINCE 2017.

AND THIS IS IMPORTANT, ANYTHING OVER 200 MILLION IS IMPORTANT.

NEW NEW CONSTRUCTION, NOT ONLY FOR JUST THE CITY AS A WHOLE, BUT IN PARTICULAR FOR THE GENERAL FUND AS NEW CONSTRUCTION IS NOT IS EXCLUDED IN THE CALCULATION FROM THE 3.5% CAP.

AND I'LL POINT OUT ON THAT NEW CONSTRUCTION NUMBER, SINCE WE'RE TALKING ABOUT ECONOMIC DEVELOPMENT FROM A PROPERTY TAX STANDPOINT, THAT'S THIS IS THE KEY INDICATOR OF SHOWING HOW OUR ECONOMIC DEVELOPMENT OR GROWTH IN THE IS COMING.

MOVING OVER TO OUR PROJECTED SALES TAX REVENUE, YOU WE ACTUALLY HAVE TWO PROJECTIONS ON THIS SLIDE HERE.

WE ARE SHOWING OUR 2020 FOR FY 24 REVISED REVENUE PROJECTION FOR SALES TAX AT A VERY HEALTHY 49.7 MILLION. IN THE PAST THREE YEARS, PARTICULARLY IN THE CURRENT YEAR, WE HAVE EXPERIENCED A LARGE VOLUME OF ONE TIME SALES TAX REVENUE ASSOCIATED WITH SOME DEVELOPMENT IN NORTH GARLAND AND ONE TIME LARGE CAPITAL PURCHASES ASSOCIATED WITH THOSE NEW BUSINESSES.

SO THAT HAS BENEFITED US GREATLY OVER THE PAST THREE YEARS, AND ABOUT TO THE TUNE OF 3.6 MILLION IN THE CURRENT YEAR.

SO THAT IS REALLY WHAT'S DRIVING THAT REVISED REVENUE PROJECTION.

LOOKING TO FY 25 PRELIMINARY, WE ARE WE NEVER ANTICIPATE WE'RE GOING TO RECEIVE ONE TIME REVENUE LIKE THAT AGAIN WITHOUT, YOU KNOW, SPECIAL INFORMATION FROM OUR ECONOMIC DEVELOPMENT DEPARTMENT OR OTHERS AROUND THE CITY.

WE CAN'T MAKE THAT ASSUMPTION.

SO WHAT YOU'LL SEE FOR FY 25 PROJECTION IS AN INCREASE BASED ON THE CURRENT YEAR'S BASE SALES TAX, THE ONGOING PORTION OF OUR SALES TAX INCREASING FROM THAT BASED ON OUR HISTORIC AVERAGE.

AND I'LL ADD THAT YOU SEE, FROM 2020 ON, THERE WAS A MAJOR SPIKE.

AND IT WAS REALLY A FACTOR OF THREE THINGS ONE.

COVID HANGOVER.

PEOPLE ARE BACK OUT IN THE COMMUNITY WANTING TO SPEND MONEY.

TWO INFLATION INFLATION HIT RECORD HIGHS AND THREE WAS REMOTE SALES TAX.

SO WE WERE ABLE TO START COLLECTING SALES TAX FROM ONLINE PURCHASES SUCH AS AMAZON, EBAY WHICH HAS HELPED.

BUT STATEWIDE.

AND HERE AT THE CITY OF GARLAND WE ARE SEEING A COOL DOWN AND GROWTH.

SO WE'RE NOT WE'RE NOT ANTICIPATING THAT THAT GROWTH WILL CONTINUE.

MOVING INTO OVERALL PROJECTED GENERAL FUND RESOURCES, THIS IS THE PRELIMINARY SPLIT OF OUR PROJECTED RESOURCES.

YOU CAN SEE THAT OUR FOUR LARGEST REVENUE SOURCES PROPERTY TAX, SALES TAX, THE THE RETURN ON INVESTMENT AND LANDFILL DISPOSAL REVENUE ACCOUNT FOR 70% OF ALL GENERAL FUND REVENUE.

LOOKING TO OUR PROJECTED GENERAL FUND EXPENDITURES, WHERE, AS I WAS MENTIONING, WE'RE AT A UNIQUE TIME IN THE BUDGET PROCESS.

SO WHAT WE'VE SHOWN YOU HERE IS WHERE WE'VE ALLOCATED OUR BASELINE.

SO BEFORE WE START WITH ANY DECISIONS WE HAVE TO FUND OUR EXISTING POSITIONS EXISTING OPERATIONAL COSTS.

SO YOU SEE THAT PERSONNEL THIS IS JUST BASELINE PERSONNEL.

ALL THE POSITIONS WE HAD FUNDED IN THE CURRENT YEAR, CONTINUING THOSE FOR ANOTHER YEAR, MAKES UP 64% OF THE GENERAL FUND EXPENDITURES.

WE HAVE OUR OPERATIONS AND CAPITAL THAT ARE ANNUAL FOR OUR DEPARTMENTS, WITH SMALL ADJUSTMENTS TO THEM FOR INFLATION OR COSTS BEYOND THEIR CONTROL, SO THEY CAN CONTINUE TO OPERATE.

WE HAVE OUR SUPPORT SERVICE TRANSFERS.

THIS IS THE GENERAL FUND SHARE OF CONTRIBUTIONS TO THE IT SERVICES FUND, FACILITIES MANAGEMENT FUND, CUSTOMER SERVICE FUND.

ALL OF THOSE HAVE INCREASED OVER TIME WITH CHANGES IN THOSE RESPECTIVE FUNDS.

AND THEN FINALLY WE HAVE TRANSFERS TO OTHER FUNDS.

A LARGE PORTION OF THIS IS THE WHAT WE WERE ABLE TO DO WITH OUR ARPA MONEY.

WITH ARPA, WE ARE ABLE TO REIMBURSE THE GENERAL FUND FOR PUBLIC SECTOR STAFFING.

[02:00:04]

ADDITIONALLY, WHAT YOU ALSO SEE IN THIS TRANSFERS TO OTHER FUND IS THE GENERAL FUNDS ANNUAL ANNUAL CONTRIBUTION TO OUR STREETS PROGRAM, OUR INFRASTRUCTURE REPLACEMENT FUND. WE ARE FOCUSED ON THIS SMALLEST SLIVER OF THE PIE, WHICH MAKES UP ABOUT 5%.

OF THIS 11.7 MILLION IS THE AMOUNT THAT IS REALLY AT THE CITY MANAGERS AND THEN ULTIMATELY THE CITY COUNCIL'S DISCRETION AS PART OF THE BUDGET PROCESS.

AND WE'RE IN THE CRUX OF MAKING A LOT OF THOSE DECISIONS TO INFORMATION RECEIVED TODAY WILL ASSIST WITH THOSE OVER THE NEXT COUPLE OF WEEKS, AND THEN WE'LL CONTINUE THAT PROCESS WITH YOU IN AUGUST WITH THE PROPOSED BUDGET.

BUT ALL OF OVERALL GENERAL FUND OUTLOOK.

AS WE SAY, THERE'S VERY LITTLE THAT IS NOT SPOKEN FOR AT THE BEGINNING OF THE PROCESS.

AND THAT NUMBER VARIES YEAR BY YEAR.

AS JUDD MENTIONED, AT THE BEGINNING OF THE DAY, WE WORKED WITH OUR DEPARTMENTS TO IDENTIFY WHICH KEY FOCUS AREA THEIR FUNDING REQUESTS SUPPORTED.

SO ALL OF OUR DEPARTMENTS ATTACHED A MAXIMUM OF THREE I'VE REALLY PREFERRED ONE, BUT I CAPPED THEM AT THREE.

FOCUS AREAS AT WHICH THEIR BUDGET REQUESTS, THEIR CHANGE IN OPERATIONS, THEIR ADDITIONAL PERSONNEL SUPPORTED.

SO WE'RE HERE TO PRESENT A HIGH LEVEL SUMMARY OF THAT INFORMATION TO YOU TODAY, AND HOW THAT CONNECTS TO THAT SMALL SLIVER OF THE PIE.

WE HAVE TO MAKE DECISIONS WITH THE MOVING INTO THIS NEXT SLIDE FOR GENERAL FUND.

WHAT YOU SEE AT THE VERY TOP OF THIS TABLE IS THE SPLIT OF OUR AVAILABLE RESOURCES.

WE HAVE A VERY SMALL AMOUNT OF THAT 11.7 MILLION THAT CAN GO TOWARDS ONGOING ITEMS. BASED UP ON THE MAKEUP OF OUR OVERALL REVENUE STRUCTURES.

WE DON'T WANT TO FUND ONGOING REQUESTS WITH ONE TIME MONEY, BECAUSE THERE IS NO GUARANTEE THAT IT WILL BE THERE IN FOLLOWING YEARS.

AND SO WHAT YOU SEE HERE IS A BREAKDOWN OF WHAT WE CONSIDER ONGOING REVENUE AVAILABLE FOR NEW REQUESTS AND ONE TIME REVENUE AVAILABLE FOR NEW REQUESTS.

SO THAT MAKES UP 3.7 MILLION, ALMOST OF ONGOING REVENUE THAT COULD BE USED TOWARDS NEW REQUESTS AND ABOUT 8 MILLION OF ONE TIME REVENUE RESOURCES THAT COULD BE USED TOWARDS NEW REQUESTS.

GIVEN THE MAKEUP AND THE ALLOCATION OF OUR REQUESTS ACROSS THESE KEY FOCUS AREAS, YOU CAN SEE THAT WE DON'T HAVE ENOUGH REVENUE TO FUND EVERYTHING.

AND THIS IS WHERE THE CITY MANAGEMENT TEAM WORKS WITH THE VARIOUS DEPARTMENTS AND THE BUDGET AND RESEARCH DEPARTMENT, AND THE CHIEF FINANCIAL OFFICER TO MAKE AND PRIORITIZE THESE WITHIN OUR AVAILABLE RESOURCES WE HAVE.

SO WHAT YOU'LL SEE AT THE BOTTOM LINE IS WE HAVE TOTAL ONGOING REQUESTS OF JUST ABOUT 8,000,001 TIME REQUESTS OF ABOUT 4.5 MILLION IN TOTAL GENERAL FUND OVERALL REQUEST FROM ALL DEPARTMENTS OF 12.55 MILLION.

AND UNFORTUNATELY, AS YOU SEE IN THIS BOTTOM LINE, NOT ENOUGH ONGOING RESOURCES TO SERVICE THOSE.

DEAD. YOU'RE LOOKING LIKE YOU WANT TO SAY SOMETHING.

DO YOU WANT TO? YEAH, I WAS I WAS JUST GOING TO ADD SOME CONTEXT AROUND THIS.

THIS IS NOT A TYPICAL FOR WHERE WE'RE AT IN THE BUDGET PROCESS.

WE'RE PROVIDING SOME ADDITIONAL VISIBILITY INTO THIS SO THAT YOU GET THE SENSE OF HOW WE'RE GOING TO TRY TO TAKE THE PRIORITIZATION THAT YOU'VE DONE AND TURN THAT INTO BUDGET SPEND.

AND SO THAT'S THAT'S THE PURPOSE OF THIS SLIDE.

IT HAPPENS EVERY YEAR THAT WE GET MORE REQUESTS THAN WE HAVE RESOURCES.

SO THIS IS NOT A THIS IS NOT A SURPRISE.

YOU'RE PROBABLY JUST SEEING THIS A LITTLE DIFFERENTLY BECAUSE IT'S AGAIN WE'RE PROVIDING SOME TRANSPARENCY INTO IT.

SO IT'S NOT ATYPICAL.

WE ALWAYS GET WAY MORE REQUESTS THAN WE HAVE AVAILABLE RESOURCES.

SO I JUST WANTED TO MAKE THAT NOTE.

OKAY GOOD. MOVING INTO SOME OF OUR MAJOR COST DRIVERS IN ADDITION TO THE DEPARTMENT REQUESTS.

IN SUMMARY, OVERALL, THE DEPARTMENT'S REQUEST THAT ONGOING AMOUNT THAT COMPRISES A REQUEST OF 36 FULL TIME POSITIONS AND FIVE PART TIME REQUEST POSITIONS REQUESTED FOR THE UPCOMING YEAR.

ALSO SOMETHING THAT THE CITY MANAGEMENT TEAM REVIEW REVIEWS ANNUALLY IN COORDINATION WITH THE HUMAN RESOURCES DEPARTMENT, IS WHAT COMPENSATION ADJUSTMENTS WE WANT TO MAKE FOR THE UPCOMING YEAR THAT INCLUDES, YOU KNOW, ANNUAL, TYPICALLY ANNUAL COMPETITIVE MERIT INCREASES FOR GENERAL SCHEDULE EMPLOYEES, SKILL BASED PAY EMPLOYEES AND CIVIL SERVICE EMPLOYEES.

SO THAT'S SOMETHING THE CITY MANAGEMENT TEAM REVIEWS BASED ON MARKET DATA PROVIDED BY HUMAN RESOURCES TO MAKE THAT DETERMINATION FOR THE UPCOMING YEAR.

[02:05:03]

ADDITIONALLY, OUR BASE BUDGET INCLUDES THE CONTINUATION OF OUR RETIREMENT STABILITY BENEFIT CITY CONTRIBUTION INCREASE, SO WE WILL SEE THE EMPLOYER MATCH INCREASE TO 2.5% FOR THE UPCOMING FISCAL YEAR.

AND WE ARE ALSO ANTICIPATING THAT THERE WILL BE NO INCREASES TO THE EMPLOYEES GROUP HEALTH INSURANCE CONTRIBUTIONS.

ON THE OPERATIONAL SIDE, WE'VE SEEN ABOUT 500,000 OF INCREASES TO DEPARTMENT'S FIXED OPERATIONAL COSTS.

THESE ARE COSTS BEYOND THEIR CONTROL.

IT'S SOMETHING THEY NEED TO OPERATE ON AN ANNUAL BASIS COULD INCLUDE THE PURCHASE OF A PARTICULAR ITEM LIKE WATER OR CONCRETE.

IT COULD ALSO INCLUDE A SERVICE CONTRACT WE HAVE WITH A THIRD PARTY VENDOR.

THAT'S A PART OF OUR ANNUAL OPERATIONS.

THAT THAT COST INCREASING IS NOT SOMETHING THAT COULD BE ABSORBED BY THEM WITHOUT ERODING OTHER OPERATIONAL AREAS.

ADDITIONALLY, WE AREN'T SEEING ANNUAL INCREASES IN OUR FLEET SERVICE MAINTENANCE COSTS, INCREASES IN OUR IT SUPPORT SERVICES FOR NEW SOFTWARE SYSTEMS. AND THEN FINALLY, AS I WAS MENTIONING EARLIER, INCREASES IN OUR FACILITY SUPPORT SERVICE COSTS FOR INCREASED MAINTENANCE AND THE IMPLEMENTATION OF THE FACILITY CONDITION ASSESSMENT FOR ALL OTHER FUNDS.

WE HAD TOTAL ONGOING REQUESTS OF ABOUT 4.9 MILLION, TOTAL ONE TIME REQUEST OF 6.2 MILLION, WITH A GRAND TOTAL FOR ALL OF OUR OTHER FUNDS OF 11.1 MILLION REQUESTED.

TO SHARE THE OUTLOOK OF OUR PRELIMINARY UTILITY RATES BASED ON THE DECISIONS MADE SO FAR THIS SUMMER, WE ARE PROJECTING NO ELECTRIC UTILITY RATE INCREASE ASSOCIATED WITH THIS YEAR.

THIS PROPOSED OR PRELIMINARY OPERATING BUDGET.

WE ARE LOOKING AT A WATER UTILITY RATE INCREASE OF ABOUT 2.6%, OR $1.66, PRIMARILY DUE TO THE COST OF WATER.

WE ARE LOOKING AT A PRELIMINARY 3.5% INCREASE, OR $1.16 FOR THE WASTEWATER UTILITY, PRIMARILY WITH THE IMPLEMENTATION OF THE CAPITAL IMPROVEMENT PROJECTS FOR OUR WASTEWATER TREATMENT PLANTS.

BASED ON WHERE WE ARE IN THE SUMMER, WE'RE STILL MAKING SOME FINAL DECISIONS ON SANITATION, SO THOSE RESIDENTIAL RATES WILL BE FINALIZED OVER THE NEXT COUPLE OF WEEKS, AND WE'LL BE ABLE TO SHARE THOSE WITH YOU COME AUGUST 5TH.

AND THEN FINALLY, BASED ON THE STRATEGY CITY COUNCIL PROVIDED DIRECTION ON LAST YEAR, WE ARE CONTINUING TO INCREASE OUR STORM WATER RESIDENTIAL RATES AND COMMERCIAL RATES UP TO THE METROPLEX AVERAGE.

SO THIS IS A CONTINUATION OF THAT STRATEGY THAT COUNCIL APPROVED LAST YEAR.

SO WE'RE LOOKING AT AN INCREASE OF $0.65 FOR THE UPCOMING YEAR.

PREVIEW OF THE BUDGET REVIEW CALENDAR.

SO WE WILL BE COMING TO COUNCIL ON AUGUST 5TH WITH THE PRESENTATION OF THE PROPOSED OPERATING BUDGET.

AND WE'RE TARGETING THAT BUDGET SATURDAY WORK SESSION FOR AUGUST 17TH.

AND THEN WE'LL CONTINUE THE PROCESS ON FROM THERE WITH PUBLIC HEARINGS AND MULTIPLE OPPORTUNITIES FOR DELIBERATION.

AND THEN MY LAST HOUSEKEEPING SLIDE IS WE HAVE SOME NEW MEMBERS, A NEW MEMBER ON THE COUNCIL, SOME SEVERAL STILL FAIRLY NEW MEMBERS OF THE COUNCIL.

SO SPEAKING WITH JED, WE WANTED TO KIND OF LAY OUT THE EXPECTATION AND JUST HOW WE GO ABOUT RECEIVING QUESTIONS RELATED TO THE BUDGET AS WELL AS CHANGES RELATED TO THE BUDGET. SO WE LOOK WE PARTNER WITH COUNCIL AND CITY MANAGEMENT ON THIS EVERY YEAR.

IF YOU HAVE QUESTIONS NOW THROUGH THE COURSE OF THE BUDGET REVIEW IF YOU WOULD KINDLY SUBMIT THOSE TO ME, I WILL WORK WITH CITY MANAGEMENT AND OUR VARIOUS DEPARTMENTS TO COORDINATE A RESPONSE, AND THEN THOSE RESPONSES WILL BE GATHERED AND THEN EMAILED TO ALL OF THE CITY COUNCIL FOR REVIEW.

ADDITIONALLY, AS WE GET INTO DELIBERATION AND DISCUSSION OF THE PROPOSED BUDGET, IF YOU WOULD SUBMIT ANY PROPOSED CHANGES TO ME AS WELL, I WILL REVIEW THAT WITH THE CITY MANAGEMENT TEAM TO COME UP WITH SOME FINANCIAL POTENTIAL FUNDING OPTIONS FOR THAT PROPOSED CHANGE, AND THEN STAFF WILL COME BACK AT THE FOLLOWING WORK SESSION THAT WE HAVE SCHEDULED AND PRESENT THOSE POTENTIAL FUNDING OPTIONS FOR THE WHOLE COUNCIL TO DELIBERATE.

AND WITH THAT, I'LL TAKE ANY QUESTIONS ABOUT THE FY 25 PREVIEW.

[02:10:02]

AND, AND THE PROCESS FOR SUBMITTING QUESTIONS AND RECEIVING ANSWERS, ALL OF THOSE ARE, ARE PRETTY STANDARD.

SO I DON'T SEE ANYONE IN THE QUEUE.

SO THANK YOU.

THANK YOU. AND I WILL I WILL GO BACK TO TO WHAT I WAS SAYING EARLIER.

SO NOW WE MOVE TO ITEM SEVEN PRESENTATION ON LONG TERM FUNDING INITIATIVES.

AS WE DISCUSSED EARLIER MOVING THE MOVING THE AGENDA AROUND A LITTLE BIT, THE WAY I SEE THIS THEORETICALLY GOING AT THIS POINT AS WE GET THROUGH SEVEN A AND SEVEN B WITH COUNCIL QUESTIONS AND PUBLIC COMMENT AND THEORETICALLY A LUNCH BREAK AFTER WE COMPLETE THE PROCESS THROUGH SEVEN B.

SO WITH THAT, LET'S DO SEVEN A.

ALL RIGHT. SO WANTED TO JUST GIVE A BRIEF INTRODUCTION TO FOUR TOPICS THAT WE'RE GOING TO BE TALKING ABOUT IN TERMS OF LONG TERM FUNDING INITIATIVES.

AND TO PUT A LITTLE CONTEXT AROUND, YOU KNOW, WE TRANSITIONED ALISON LEFT OFF TALKING ABOUT OUR UPCOMING OPERATIONAL BUDGET.

NOW WE'RE SHIFTING INTO LONG TERM FUNDING INITIATIVES.

AND IT KIND OF BEGS THIS DICHOTOMY THAT REALLY SB TWO HAS CREATED, WHICH IS WE HAVE REAL A LOT OF CONVERGENCE AND TIGHTNESS BUDGET WISE ON THE OPERATION SIDE.

BUT SINCE OUR PROPERTY BASE HAS BEEN GROWING, WE HAVE AND WE'RE NOT CAPPED ON THE DEBT SERVICE SIDE, THERE IS CAPACITY FOR LONG TERM FUNDING INITIATIVES ON THE DEBT ON THE DEBT SERVICE SIDE. SO REALLY THAT'S WHAT SB TWO.

SB TWO DID TO CITIES IS REALLY FORCE US TO RESTRATEGIZE HOW WE'RE GOING TO USE THE ISSUE DEBT FOR CERTAIN THINGS THAT WE CAN ISSUE DEBT FOR, AND PAY FOR THINGS THAT WAY, WHILE REALLY TIGHTENING THE OPERATION SIDE.

AND SO YOU KIND OF SEE THAT PLAY OUT.

AND REALLY, THE 2019 BOND PROGRAM IS AN EXAMPLE OF THAT, WHERE DUE TO INFLATION AND OTHER COST PRESSURES, YOU KNOW, THAT BOND PROGRAM HAS GROWN QUITE A BIT IN ITS COST.

BUT WE HAVE THIS COMMITMENT TO FINISH WHAT WE'VE STARTED.

AND THAT'S REALLY WHAT I WANTED TO KICK INTO HERE IS, YOU KNOW, THERE'S A PHILOSOPHY THAT WE'RE TAKING AS WE APPROACH LONG TERM FUNDING OPPORTUNITIES, AND IT IS THAT WE WANT TO FINISH WHAT WE'VE STARTED.

WE WANT TO TAKE CARE OF WHAT WE HAVE AND WE WANT TO PLAN FOR THE FUTURE.

AND SO THAT'S REALLY WHAT WE'RE TRYING TO LAY THE FOUNDATION FOR WITH THESE CONVERSATIONS IS HOW DO WE BECAUSE THERE THERE STILL IS LIMITED RESOURCES.

EVEN THOUGH OUR PROPERTY TAX BASE HAS GROWN, WE STILL HAVE LIMITED RESOURCES.

AND THE ACTUALLY, I'LL FLIP TO THE NEXT SLIDE, THE 315 MILLION THAT WE HAVE AVAILABLE FOR DEBT SERVICE CAPACITY OVER THE COMING YEARS IS, YOU KNOW, THAT'S THAT'S NOT A SMALL AMOUNT.

BUT AT THE SAME TIME, THERE'S A LOT OF NEED OUT THERE AS WE'RE GOING TO DEMONSTRATE AS WELL.

SO IN TERMS OF DEBT SERVICE CAPACITY FOR UPCOMING INITIATIVES, THIS NICE LITTLE COLORFUL DONUT GIVES YOU A SENSE FOR WHAT? WHAT? OUR DEBT CAPACITY IS 344 MILLION DEDICATED TO 2024 CIP PROJECTS.

COUNCIL YOU RECALL BACK IN JANUARY AND FEBRUARY WHEN WE WERE HAVING CIP CONVERSATIONS, THAT'S WHERE WHAT LED TO $344 MILLION CIP.

THAT INCLUDES, YOU KNOW, OUR 2004 2019 BOND PROJECTS AND EVERYTHING ELSE THAT CIP RELATED ON THE ON THE GENERAL FUND SIDE. THE 46 MILLION THAT'S IN THERE FOR DRAINAGE IMPROVEMENTS.

THAT REPRESENTS THE INCREASE IN OUR STORMWATER FEE IN ORDER TO PAY FOR DRAINAGE IMPROVEMENTS.

AND SO THERE'LL BE CONVERSATIONS DOWN THE ROAD ONCE THAT ONCE THAT MONEY BUILDS UP FROM THOSE FEES, WHERE WE CAN ACTUALLY ISSUE DEBT AND GO TACKLE SOME OF THE DRAINAGE PROJECTS AND DRAINAGE NEEDS ACROSS THE CITY.

AND THEN THESE NEXT TWO BLOCKS, THE THE GRAY AND THE YELLOW GRAY IS JUST AN EMERGENCY RESERVE.

WE WE PLAN CONSERVATIVELY, YOU KNOW, BACK TO THE PREVIOUS SLIDE OF PLAN FOR THE FOR FUTURE NEEDS.

WE WANT TO AT LEAST HAVE SOME RESERVE THERE FOR UNFORESEEN THINGS THAT COME UP IN THE FUTURE.

ON THE DEBT SERVICE SIDE.

AND SO WE'RE DOING THAT. AND THEN 54 MILLION FOR AN INFLATION RESERVE.

WE WE KNOW THAT THE BUDGET THAT WE HAVE PUT INTO THE CIP FOR, ESPECIALLY OUR 2019 BOND PROJECTS IS NOT GOING TO BE ENOUGH. THE COST OF OF THINGS IS STILL INCREASING.

THERE'S STILL A LOT OF INFLATION PRESSURE AND SUPPLY CHAIN PRESSURES ON OUR ON OUR BOND PROJECTS.

AND SO WE HAVE AN INFLATION RESERVE THAT WE SET ASIDE ACTUALLY A COUPLE OF YEARS AGO THAT WE'RE GOING TO CONTINUE TO DRAW FROM TO KEEP THOSE PROJECTS ON TO COMPLETION.

[02:15:07]

THERE'S THERE'S A $315 MILLION AVAILABILITY THERE.

YOU'LL RECALL EARLIER THIS YEAR WHEN WE WERE DOING THE CIP, THAT THAT NUMBER WAS PROJECTED TO BE ABOUT 270 MILLION THAT WAS BASED ON A SMALLER PROPERTY TAX BASE GROWTH ESTIMATE.

AND SINCE WE'RE GROWING AT 8.5% THIS YEAR, THERE IS ADDITIONAL DEBT SERVICE CAPACITY ABOVE THAT 270 MILLION.

IT'S CHANGED BASICALLY INTO 315 MILLION TO QUEUE UP SOME OF THE NEXT CONVERSATIONS.

THIS TABLE UP HERE SHOWS A POSSIBLE ALLOCATION OF THE 315 MILLION.

THIS IS REALLY JUST FOR DISCUSSION SAKE AND A STARTING POINT.

THERE ARE MANY LEVERS AND DIALS THAT CAN BE MOVED HERE IN TERMS OF WHERE THAT $315 MILLION GO.

AND I'LL START AT THE TOP THERE.

YOU'RE GOING TO HEAR FROM OUR FROM OUR TEAM ABOUT STREETS AND THE NEED THAT EXISTS THERE.

AND SO WE'VE JUST PUT A GENERAL PLACEHOLDER OF 70 MILLION FOR STREET STREET MAINTENANCE FACILITIES, MASTER PLAN.

THAT'S ANOTHER PRESENTATION YOU'RE GOING TO GET ABOUT THE CONDITION OF OUR, OUR 400 PLUS CITY BUILDINGS OUT IN OUR PORTFOLIO.

THERE'S ADDITIONAL NEED THERE.

WE DO ALLOCATE MONEY OR AND HAVE ALLOCATED MONEY OVER TIME THERE.

WE KNOW THAT'S GOING TO NEED SOME ADDITIONAL BOOST.

AND SO WE'RE SHOWING 15 MILLION TOTAL THAT WOULD GO TOWARD THAT EFFORT AS WELL.

THE NEXT TOPIC, AND THIS IS ONE THAT WE'RE REALLY GOING TO GET INTO IS IS COLA COST OF LIVING ADJUSTMENT FOR RETIREES AND RETIREE BENEFITS.

THE APPROXIMATE COST TO ISSUE PENSION OBLIGATION BONDS TO PURSUE AND IMPLEMENT A COLA, A 30% NO CATCH UP COLA IS ROUGHLY 75 TO 80 MILLION, AND SO THERE'S A PLACEHOLDER FOR THAT AS WELL SHOULD COUNCIL WANT TO GO THAT DIRECTION.

AND THEN FINALLY THERE'S AN ECONOMIC DEVELOPMENT BOND PROGRAM IN HERE.

THIS IS SOMETHING WE'VE BEEN TALKING ABOUT EARLIER THIS YEAR.

SO WE HAVE A PLACEHOLDER FOR THAT AND A PRESENTATION LATER ON THIS TOPIC AS WELL.

SO THESE ARE KIND OF THE FOUR THINGS THAT WE'RE READY TO DIG INTO NOW.

JUST WANTED TO SET IT UP WITH THE CONTEXT OF HAVING THE CONTEXT OF THAT $315 MILLION IN AVAILABLE CAPACITY NUMBER OUT THERE.

AND WITH THAT, WE'RE GOING TO JUMP INTO TMS COLA AND ALL THINGS RETIREE BENEFITS.

YEAH. SO WHAT WE'RE GOING TO TALK ABOUT MOSTLY IS FROM THE RETIREE BENEFITS STANDPOINT, WE KIND OF HAVE TWO BIG LEVERS.

WE HAVE OUR TMS BENEFIT, WHICH IS OUR PENSION, AND WE HAVE RETIREE HEALTH INSURANCE, AND WE'RE GOING TO DO OUR BEST TO GO OVER BOTH OF THOSE TOPICS, HOW MUCH THEY COST, WHERE WE STAND COMPARED TO THE METROPLEX, JUST TO HOPEFULLY GIVE Y'ALL Y'ALL SOME MORE DATA TO MAKE A DECISION WHEN IT COMES TO THE COST OF LIVING ADJUSTMENT THAT IS ASSOCIATED WITH MRS. BEFORE GETTING STARTED AT THE END OF THIS PRESENTATION, THERE THERE ARE SOME PROJECTIONS AND SOME ASSUMPTIONS THAT WE'RE MAKING.

I WANT YOU ALL KNOW THIS, BUT I ALWAYS HAVE TO SAY IT.

I DO NOT HAVE A CRYSTAL BALL AND PROJECT.

THESE ARE JUST PROJECTIONS AND I CAN GUARANTEE YOU THEY WILL BE WRONG.

BUT I HOPE THAT THEY'RE USEFUL IN MAKING DECISIONS.

SO JUST KNOW THAT EVERYTHING WE DO, WE HAVE TO MAKE SOME SORT OF ASSUMPTION, BUT WE CAN'T PREDICT THE FUTURE.

SO STARTING WITH TMS. SO THE CITY PROVIDES RETIREMENT BENEFITS FOR ELIGIBLE EMPLOYEES THROUGH THE TEXAS MUNICIPAL RETIREMENT SYSTEM, WHICH IS A STATEWIDE RETIREMENT SYSTEM WITH MORE THAN 390 PARTICIPATING CITIES.

AND THEY PROVIDE RETIREMENT, DISABILITY AND SURVIVAL BENEFITS TO OVER 2100 ACTIVE MEMBERS, RETIREES AND THEIR BENEFICIARIES.

FOR THE CITY OF GARLAND, WE MAKE UP ABOUT 1799 OF THOSE ACTIVE MEMBERS, AND I BELIEVE WE ARE ONE OF THE LARGEST CITIES IN IT.

SAN ANTONIO, I BELIEVE, IS THE BIGGEST CITY THAT IS IN TMRS. WHEN YOU LOOK AT TMRS, HOW ARE YOU ELIGIBLE FOR THIS BENEFIT? IT REALLY FLOWS INTO THESE THREE BIG CATEGORIES.

FIRST, IF YOU HIT AGE 60 AND YOU HAVE FIVE YEARS OF SERVICE, YOU ARE ELIGIBLE FOR A TEAMSTERS RETIREE BENEFIT.

OR IF YOU WORK 20 YEARS WITH NO AGE LIMIT.

SO IF YOU HAVE 20 YEARS OF SERVICE, THERE IS NO AGE LIMIT.

AND THEN THIRD, IF YOU'RE DISABLED, THERE ARE NO SERVICE, NO SERVICE OR AGE REQUIREMENTS.

SO WHEN YOU LOOK AT TMRS, THEY OFFER KIND OF A MENU OF OPTIONS THAT A CITY CAN CHOOSE.

SO LEVERS, THERE'S CERTAIN LEVERS YOU CAN PULL TO, TO EITHER MAKE THE BENEFIT MORE LUCRATIVE FOR RETIREES OR LESS AND VICE VERSA FOR

[02:20:02]

OBVIOUSLY, THAT'S A HIGHER COST TO BOTH THE CITY AND IT CAN BE TO THE EMPLOYEE AS WELL.

THE FIRST LEVER IS THE MANDATORY PARTICIPATION.

SO CURRENTLY ALL EMPLOYEES AT THE CITY OF GARLAND HAVE TO PUT IN 7% OF THEIR COMPENSATION.

THE OTHER LEVERS YOU COULD PULL HERE THROUGH TMS IS YOU COULD USE 5 OR 6%.

THE CITY OF GARLAND IS DOING SEVEN.

AND THEN FROM THE CITY'S PERSPECTIVE, WE ARE A 2 TO 1 MATCH TO THAT.

SO IT'S ROUGHLY 14% COMING FROM THE CITY.

AND LATER IN THE SLIDE, YOU'LL SEE THAT OUR CONTRIBUTION RATE IS LOWER THAN 14.

AND WHY THAT IS, IS BECAUSE WE HAVE AN ACTUARIAL DETERMINED AMOUNT THAT WE NEED TO SET ASIDE TO FUND OUR, OUR, OUR TMRS UNFUNDED LIABILITIES.

AND THERE'S INTEREST EARNINGS THAT COME IN.

SO THERE'S A LOT OF THE EQUATION THAT GOES INTO PLAY.

BUT THE GIST OF IT IS, IS THAT WE ARE THERE TO PROVIDE A 2 TO 1 MATCH.

WE ALSO HAVE A SUPPLEMENTAL DEATH BENEFIT THAT WE HAVE TURNED ON WITH OUR TEAMSTERS BENEFIT, WHICH WILL GIVE A RETIREE A LUMP SUM OF 7500 IF THEY PASS AWAY, AND IF THEY ARE STILL WORKING, THEY WILL GET THEIR ANNUAL COMPENSATION IF THEY PASS AWAY.

AND THE FINAL PIECE IS THE UPDATED SERVICE CREDIT, WHICH WE HAVE AT 100%.

AND WHAT THIS IS, IS A CREDIT THAT A EMPLOYEE WILL RECEIVE EACH YEAR IF THEY HAVE ADJUSTMENTS TO THEIR SALARY.

SO THE EASIEST WAY TO THINK OF THIS IS IF YOU STARTED AT THE CITY OF GARLAND MAKING ROUGHLY $35,000 A YEAR, AND THEN YOU'VE MOVED ON THROUGH AND YOU RETIRE AS A MANAGER, YOU WOULD HAVE A HIGHER SALARY.

THESE CREDITS ARE EARNED EACH YEAR, WHICH WILL INCREASE YOUR ANNUITY.

SO THIS IS AN EXTREMELY IMPORTANT BENEFIT AND ONE THAT WE HAVE AT 100%.

AND THE FINAL PIECE IS THE COST OF LIVING ADJUSTMENT, WHICH WE WILL BE SPENDING THE BULK OF OUR DISCUSSION ON.

IF ELECTED, AN INCREASE TO CITY'S MONTHLY RETIREMENT BASED ON INFLATION OR CPI, WHICH IS THE CONSUMER PRICE INDEX.

HTML PROVIDES THE OPTION OF A 30, 50 OR 70% COLA.

CITY OF GARLAND ELECTED TO REMOVE THE COLA BENEFIT IN 2009, AND PRIOR TO THIS DATE, THE CITY PROVIDED THE HIGHEST OPTION OF 70%. HERE'S A LOOK AT THE CALCULATION FOR JANUARY 2025.

SO WHAT TMS WILL DO IS LOOK AT INFLATION FROM 2023.

IT WAS ROUGHLY 3.4%.

A 30% COLA WILL GIVE YOU A 1% INCREASE OR COST OF LIVING ADJUSTMENT.

A 50% WILL GIVE YOU ABOUT A 1.7% COST OF LIVING ADJUSTMENT, AND A 70% WILL GIVE YOU ROUGHLY 2.4%.

AND IN THE NOTES, I WANT TO MAKE SURE TO TO BRING THIS UP, BECAUSE WE'RE GOING TO GET INTO SOME ASSUMPTIONS OVER LONG TERM IMPACTS FOR RETIREES.

AND TMS USES 2.5% LONG TERM.

SO WHAT WE WILL BE USING IN OUR SOME OF OUR SCENARIOS THAT WE'LL GET INTO LATER IS 0.75% FOR A 30% COLA.

NEXT, I WANTED TO GET INTO SOME OF THE BACKGROUND OR KIND OF THE TIMELINE OF THE HISTORY OF GARLAND WITH A COLA.

SO PRIOR TO 1999, THE CITY OF GARLAND WAS PROVIDING 70% COLAS EACH YEAR BASED ON THE FINANCIAL CONDITION OF THE CITY.

SO IT WAS AN EVERY YEAR OR WHAT WHAT TMS CALLS A REPEATING COLA.

WE PROVIDED A COLA IN 1981, 1986, 1988 THROUGH 1992 AND THEN AGAIN IN 1995 THROUGH 1998. MOVING ON TO 1999, THE CITY TURNED ON WHAT'S CALLED A REPEATING COLA AT 70%, WHICH MEANS EVERY YEAR THE THE RETIREES WILL RECEIVE A 70% OF CPI COLA.

BY 2004, THE CITY OF GARLAND AND WE WEREN'T ALONE IN THIS.

MANY CITIES AND TEAMS THEMSELVES WERE STARTING TO QUESTION THEIR FUNDING MECHANISMS AND THEIR FUNDING STRUCTURE WHEN IT COMES TO THEIR ACTUARIAL METHODOLOGY.

WE ACTUALLY HIRED A ACTUARY IN THIS YEAR, AND THEY ALSO FOUND THAT THERE WAS SOME STRUCTURAL FLAWS WITH HOW MRS WAS SETTING ASIDE, OR THE CONTRIBUTIONS COMING FROM CITY TO SET ASIDE TO COVER THIS BENEFIT.

MOVING ON TO 2008, TWO THINGS HAPPENED HERE ONE, THE GREAT RECESSION HITS PROPERTY VALUES AT THE CITY OF GARLAND BEGIN TO GO DOWN.

AND AND THIS WAS A HUGE IMPACT ON OUR BUDGETS MOVING FORWARD AFTER THIS DATE.

[02:25:03]

PREVIOUSLY, THEY WERE NOT HAVING CITIES SET ASIDE THE RIGHT AMOUNT TO FULLY FUND THE LONG TERM LIABILITIES ASSOCIATED WITH THOSE TWO PIECES. MOVING ON TO 2009, BECAUSE OF THAT CHANGE WITH TEAMSTERS, OUR RATE OF CONTRIBUTION RATE THAT WAS GOING TO BE PAID BY THE CITY WENT UP DRASTICALLY.

IT WENT UP A LOT, WAS GOING TO COST THE CITY AS A WHOLE $11.7 MILLION A YEAR TO FUND A 70% COLA.

BASED OFF OF THIS NEW METHODOLOGY AND THE TAX SUPPORTED GENERAL FUND, IT WOULD HAVE BEEN ABOUT $7.2 MILLION.

I MENTIONED THE GREAT RECESSION HITTING IN 2008 WITHOUT EVEN TAKING INTO CONSIDERATION, FINDING THE MONEY FOR THAT 7.2 MILLION FOR THE GENERAL FUND.

THE CITY HAD A $5 MILLION DEFICIT TO THE BUDGET.

WE HAD TO ELIMINATE ROUGHLY 42 POSITIONS.

WE HAD TO ELIMINATE THE STAR SPANGLED FOURTH EVENT, AND WE HAD TO CLOSE THE RIDGEWOOD LIBRARY, AMONG OTHER SERVICE LEVELS.

IN 2011 SENATE BILL 350 WAS SIGNED BY THE GOVERNOR BY GOVERNOR PERRY, WHICH CREATED A MUCH MORE EFFICIENT FUNDING STRUCTURE AT TMS, AND IT ALSO PROTECTED THE CITIES FROM THE DOWNSIDE RISK OF LEVERAGE, ADVERSE INVESTMENT IN RETURNS, AND ENHANCED CONTRIBUTION RATES TO STABILIZATION IN IN SHORT TERM, WHAT THIS DID WAS LOWER OUR RATE FROM ROUGHLY 17.4 DOWN TO 12.1, WHICH WAS A HUGE SAVINGS.

BUT REMEMBER, DURING THIS TIME WE WERE STILL IN THE THROES OF THE RECESSION, SO THOSE SAVINGS THAT CAME FROM TMRS WERE UTILIZED TO DO SEVERAL THINGS ONE PREVENT FURTHER FURLOUGHS, FURTHER SERVICE LEVEL REDUCTION, FURTHER ELIMINATION OF POSITIONS.

ACTUALLY, IN 2010, WE HAD TO ACTUALLY INSTITUTE A SALARY REDUCTION FOR ALL EMPLOYEES.

AND IN 2011, THE CITY MANAGER'S GOAL AT THE TIME WAS TO REINSTATE THOSE AND TO TRY TO MAINTAIN CURRENT SERVICE LEVELS.

2013 THE CITY OF GARLAND ACTUALLY ENDORSED HOUSE BILL 718, WHICH WAS VERY SIMILAR TO WHAT HAPPENED IN 2023, WHICH LOOKED TO ELIMINATE WHAT THEY CALL THE CATCH UP PROVISION.

SO IF WE WERE TO, YOU KNOW, WE TURNED OFF OUR COLA IN 2009, IF WE WERE TO REINSTATE THE COLA WITH THIS CATCH UP PROVISION, YOU WOULD HAVE TO CATCH UP ALL RETIREES BACK TO THAT DATE OF THEIR RETIREMENT, WHICH WAS A SUBSTANTIAL COST, WHICH WE WILL TALK ABOUT LATER ON HOW MUCH THAT IS.

THIS ULTIMATELY FAILED.

AND IT FAILED MOSTLY BECAUSE WE THE, THE THE HOUSE BILL WAS LOOKING TO ALLOW CITIES TO BASICALLY CHOOSE THE PERCENTAGE INCREASE THAT THEY WANTED TO DO.

SO INSTEAD OF HAVING THE 30, 50, 70% OPTIONS, LOOKING AT WHAT IS MY FINANCIAL SITUATION AND WHAT PERCENTAGE CAN I AFFORD? AND THAT ULTIMATELY FELL DUE TO THE FACT THAT THERE WAS A FEAR THAT CITIES WOULD JUST START UP, YOU KNOW, INCREASING AND LOWERING AND, YOU KNOW, RIGHT OR WRONG, I TEND TO THINK THAT THERE IS A VALID POINT THERE.

2015 OUR TAX BASE FINALLY REACHES THE SAME LEVEL.

IT WAS PRE-RECESSION, SO IT TOOK US SEVEN YEARS TO GET TO THE EXACT SAME TAX BASE WE HAD IN 2008.

SO BY THAT TIME.

BUT WHAT I'M TRYING TO SAY THERE IS WE HAD MAJOR COST REDUCTIONS, AND WE WERE ONLY GETTING BACK TO WHERE WE WERE IN 2008 AT THIS TIME. AND SO THE CHANGE THAT OCCURS HERE IS HOW DO WE START BUILDING OUR SERVICES AND REINSTATING ALL THE CUTS WE HAVE.

ON TOP OF THAT, STREETS BECAME A HUGE TOPIC.

WE HAD VASTLY UNDERFUNDED OUR STREETS, AND WE WERE LOOKING DESPERATELY TO FIND A WAY TO PUMP MORE MONEY INTO OUR INFRASTRUCTURE.

MOVING ON TO 2018, WE START SEEING SOME STEADY GROWTH IN TAX BASE AND OUR OTHER REVENUE SOURCES.

AND AT THIS TIME, CITY MANAGEMENT WENT TO COUNCIL WITH REALLY TWO THINGS.

ONE WAS TO TRY TO SUSTAIN OUR RETIREE HEALTH INSURANCE PROGRAM.

SO MUCH LIKE WITH TEAMSTERS AND COLA, THERE IS AN UNFUNDED LIABILITY ASSOCIATED WITH THE MEDICAL INSURANCE THAT WE

[02:30:03]

SO WHAT WE DID IS EARLIER IN 2000, ROUGHLY 2008, WE ESTABLISHED AN IRREVOCABLE TRUST TO START PRE-FUNDING OUR MEDICAL RETIREE INSURANCE.

WE WERE NOT ABLE TO CONTRIBUTE TO THAT AS WE NEEDED TO AT THAT TIME.

BUT IN 2018, WE DEVISED A PLAN TO TRY TO GET TO A POINT OVER THE NEXT TEN YEARS TO FULLY FUND THAT LIABILITY AND TO ALSO AT THAT POINT, START UTILIZING THOSE FUNDS TO OFFSET RETIREE PREMIUMS. THE SECOND PIECE WAS THERE WAS A PROPOSAL BROUGHT FORWARD TO TO CREATE WHAT IS CALLED THE RETIREMENT STABILITY BENEFIT FOR CIVIL SERVICE. CIVIL SERVICE AT THE CITY OF GARLAND DO NOT PARTICIPATE IN SOCIAL SECURITY.

WHAT THIS BENEFIT WAS DESIGNED TO DO WAS TO STAIR STEP OVER TIME TO GET TO A TOTAL CONTRIBUTION OF 7%, WITH PORTION COMING FROM THE EMPLOYEE AND A PORTION COMING FROM THE CITY TO BASICALLY BE THE EQUIVALENT OF SOCIAL SECURITY.

SO THAT WAS STARTED IN 2018 AS WELL.

AND THEN MOVING FORWARD TO 2023.

HOUSE BILL 2464 WAS SIGNED INTO LAW, AND WHAT THIS DID WAS GIVE CITIES A THREE YEAR WINDOW TO REINSTATE COLAS OR TO CHANGE YOUR COLA WITHOUT DOING THE NO CATCH UP PROVISION.

SO BACK TO THE 2009 WHEN WE CUT IT OFF IN TYPICAL FASHION BEFORE THIS BILL WAS PASSED, IF WE WERE TO TURN IT ON, WE WOULD HAVE TO CATCH UP ALL THOSE RETIREES BACK IN TIME TO GIVE THEM THE PROPER COST OF LIVING ADJUSTMENT.

REMOVAL OF THIS CATCH UP PROVISION ALLOWS CITIES TO TURN IT ON WITHOUT THAT LOOK BACK.

BUT I WILL SAY THAT YES, THERE IS A SUBSTANTIAL COST SAVINGS TO THAT.

BUT WHEN YOU'RE LOOKING FORWARD AND THE PROJECTIONS FOR THE COST FORWARD, YOU'RE NOT JUST LOOKING AT THE RETIREES ON THE BOOK, BUT YOU'RE LOOKING AT ALL 2800 ACTIVE EMPLOYEES THAT ARE HERE AT THE CITY OF GARLAND.

AND SO THE COST IS STILL SUBSTANTIAL, WHICH YOU WILL SEE.

SO THIS SLIDE IS A LITTLE BUSY, AND I'M GOING TO DO MY BEST TO WALK YOU ALL THROUGH IT.

WHEN YOU SEE THE WORD UAL WHAT THAT STANDS FOR IS UNFUNDED ACTUARIAL ACCRUED LIABILITY.

IN LAYMAN'S TERM THIS BASICALLY MEANS HOW MUCH MONEY HAVE YOU SET ASIDE FOR YOUR UNFUNDED LIABILITY VERSUS WHAT IS YOUR UNFUNDED LIABILITY, AND WHAT'S THE DIFFERENCE? SO WHAT IS NOT FUNDED OF THIS ACCRUED LIABILITY THAT WE HAVE ON OUR BOOKS? AND I HAVE A COMPARISON TO THESE METROPLEX CITIES AND ALL THESE METROPLEX CITIES.

YOU'LL SEE THROUGHOUT THE REST OF THIS PRESENTATION.

THESE ARE KIND OF THE TEN CITIES WE TYPICALLY COMPARE TO.

I HAVE REMOVED DALLAS AND FORT WORTH, MAINLY BECAUSE WHEN YOU WERE TALKING ABOUT PENSIONS IT WOULD DEFINITELY SKEW THE NUMBERS HERE. SO WE'RE WE'RE LOOKING MOSTLY AT ENTERING CITIES AND CITIES OF, OF SIMILAR SIZE TO GARLAND IN RED.

YOU SEE ARLINGTON, IRVING AND GRAND PRAIRIE.

AND YOU'LL ALSO NOTICE THAT THEY'RE UNFUNDED.

ACTUARIAL ACCRUED LIABILITIES ARE RELATIVELY LOW.

AND THE REASON THAT THAT THEY ARE IS THE ALL THREE OF THESE CITIES HAVE ISSUED PENSION OBLIGATION BONDS TO OFFSET THEIR UNFUNDED ACTUARIAL ACCRUED LIABILITY. FOR THE MOST PART PART WHAT THESE CITIES DID IS SENATE BILL TWO WENT INTO EFFECT IN 2009.

THEY KNEW THEY WERE CAPPED, BUT THEY HAVE THIS COST OF LIVING ADJUSTMENT OF 50% IN ARLINGTON, 30% IN IRVING AND 70IN GRAND PRAIRIE THAT THEY NEED TO CONTINUE TO FUND AT THIS TIME.

YOU KNOW, INTEREST RATES WERE ROUGHLY 2.5% LOW INTEREST RATES.

SO WHAT THEY'VE DONE IS BASICALLY MOVED THIS UNFUNDED LIABILITY OVER TO THE DEBT SERVICE SIDE OF THE COIN.

IT'S NOT CAPPED.

THEREFORE, YOU'RE GOING TO ANTICIPATE LARGER REVENUE.

AND SECOND, IT'S JUST MOVING A LINE ON THE BALANCE SHEET.

SO I HAD AN UNFUNDED LIABILITY.

FOR EXAMPLE, IN ARLINGTON THEY ISSUED $192 MILLION OF PENSION BONDS.

THEY MOVED 192 MILLION FROM AN UNFUNDED LIABILITY TO OUTSTANDING DEBT SERVICE.

MOVING DOWN.

YOU OWE MOVING TO THE RIGHT.

YOU SEE ALSO ONE WAY WE WE LOOK TO TRY TO MAKE THEM APPLES TO APPLES IS LOOK AT THEIR UNFUNDED ACTUARY ACCRUED LIABILITY.

AND WHAT IS THAT AS A PERCENTAGE OF THE PAYROLL.

AND YOU CAN SEE THOSE THREE CITIES IN RED.

IT'S LOW BECAUSE THEY HAVE DONE THE PENSION BOND ROUTE.

THEY'VE TAKEN IT OFF THE TABLE FROM THE OPERATIONAL SIDE OF THE COIN.

[02:35:02]

BUT I'M SORRY, 43% FOR THE UAL AS A PERCENTAGE OF PAYROLL.

AND WITH THE CITY OF GARLAND, IT'S ABOUT 16.4 AS FAR AS A RULE OF THUMB OF WHERE YOU WANT TO BE THERE.

THERE'S REALLY NOT A RULE OF THUMB, BUT JUST KNOW THE HIGHER THAT AMOUNT IS, THE MORE THE MORE LIABILITY YOU HAVE TO COVER IN THE FUTURE. SO LOOKING AT, SAY, PLANO AT 61 OR MESQUITE AT 77.8, THAT IS A LOT OF FUTURE FUNDS THAT THEY'RE GOING TO HAVE TO COME UP WITH AS A PERCENTAGE OF PAYROLL.

AS IF YOU LOOK AT THE FULL RATES, A FULL RATE IS THE CONTRIBUTION RATE THAT THE CITY IS PROVIDING BASED OFF PAYROLL.

SO WE LOOK AT OUR TOTAL PAYROLL TIMES THAT RATE.

THAT'S HOW MUCH WE ARE GIVING TO TMRS. GARLAND RIGHT NOW IS AT 11.20 AND THE AVERAGE IS ABOUT 15.15.

AS FAR AS NUMBER OF RETIREES, YOU CAN SEE WE'RE ABOVE THE AVERAGE.

WE HAVE 1799 RETIREES, SECOND ONLY TO ARLINGTON ON THE MRS PLAN.

AND IF YOU LOOK AT COLAS, ON AVERAGE, IT'S A 50% COLA.

TECHNICALLY, IT'S A 58.

I KNOW I ROUNDED DOWN, BUT I WENT TO THE CLOSEST OPTION THAT IS AVAILABLE AS FAR AS USC'S.

MOST CITIES ARE DOING THE 100% USC.

AND ON THE SUPPLEMENTAL DEATH, IT'S REALLY A 50 OVER 50 IF THEY'RE PROVIDING THAT SUPPLEMENTAL DEATH BENEFIT OR NOT.

AND BACK TO THE USC.

YOU'LL NOTICE CARROLLTON, RICHARDSON AND LEWISVILLE DO NOT HAVE 100% USC.

ONE TACTIC THAT YOU COULD DO IS BACK TO THE POOLING OF LOVERS IS REDUCE YOUR UPDATED SERVICE CREDITS TO PROVIDE A COLA, BECAUSE IF YOU REDUCE THE UPDATED SERVICE CREDIT, IT WILL PROVIDE SAVINGS TO THE CITY AND THEN PROVIDE A COLA ON TOP OF THAT TO MAYBE, YOU KNOW, TO GIVE THAT COST OF LIVING ADJUSTMENT.

AND BACK TO WHAT I KEEP SAYING OF ROBBING PETER TO PAY PAUL, THAT IMPACTS PEOPLE IN A VERY DIFFERENT WAY.

WE HAVE KIND OF TAKEN OFF THE TABLE RIGHT NOW OF LOOKING AT LOWERING OUR UPDATED SERVICE CREDIT AND ARE REALLY JUST LOOKING FOR METHODS ON ON IF WE ARE GOING TO PROVIDE A COLA ON TOP OF OUR 100% USC.

SO THIS IS THE FRESH INFORMATION WE'VE RECEIVED FROM TEAMS ON WHAT IT WILL COST THE CITY TO REINSTATE A COLA UNDER THESE SIX OPTIONS. SO WE HAVE A 30% COLA, 50% COLA AND A 70% COLA, PROVIDING BOTH A NO CATCH UP, WHICH WE'RE ALLOWED TO DO FOR THIS THREE YEAR WINDOW.

SO BY DECEMBER 2025 IS WHEN THIS WILL SHUT OFF THE CATCH UP PROVISION, WHICH WOULD CATCH UP ALL RETIREES TO THE 2009 LEVELS AND TO PROPERLY PROVIDE THE COST OF LIVING ADJUSTMENT THAT THEY HAVE NOT RECEIVED.

LOOKING AT THE 30% NO CATCH UP, I'VE PROVIDED REALLY TWO FUNDING OPTIONS.

ONE IS WE PUT IT ON THE OPERATIONAL BUDGET, WHICH IS KIND OF THE TRADITIONAL METHOD OF HOW YOU WANT TO FUND THIS, AS IT IS A COST THAT'S ASSOCIATED WITH RUNNING YOUR OPERATIONS.

AND THEN THE SECOND ONE IS GOING THIS PENSION BOND ROUTE.

SO WHEN YOU LOOK AT A 30% NO COLA, A 30% NO COLA WILL COST THE CITY ABOUT $7.6 MILLION ANNUALLY IN OPERATIONS. THE GENERAL FUND THAT'S ABOUT $4.7 MILLION ANNUALLY.

I'VE ALSO PROVIDED A TAX RATE EQUIVALENT, AND THAT WAS JUST TO SHOW WHAT THAT WOULD COST ON THE TAX RATE OF ABOUT 1.8 CENTS PER $100 OF VALUATION.

THE SECOND FUNDING OPTION IS THE PENSION BONDS FOR A 30% COLA.

NO CATCH UP. THAT'S ROUGHLY $75 MILLION, OR $6.5 MILLION A YEAR IN ANNUAL DEBT SERVICE, ASSUMING A 20 YEAR AMORTIZATION PERIOD TO PUT THE COLA BACK IN PLACE WHERE IT WAS IN 2009, THE 70% COLA CATCH UP OPTION WOULD COST THE CITY $29 MILLION A YEAR, OR THE GENERAL FUND $18 MILLION A YEAR.

TO PUT THAT IN PERSPECTIVE, $18 MILLION A YEAR IS ROUGHLY THE PARKS DEPARTMENT, THE CULTURAL ARTS DEPARTMENT, AND THE LIBRARY DEPARTMENT COMBINED.

AND ON THE PENSION BOND SIDE, WE MENTIONED THE 315 MILLION THAT WOULD BASICALLY TAKE THE FULL CAPACITY TO REINSTATE THE 70% COLA.

WHAT DOES THIS DO FOR THE RETIREES? THIS INFORMATION IS FROM TMRS. SO WE HAVE 1799 RETIREES RIGHT NOW.

THIS IS JUST THE AVERAGE ANNUITY.

[02:40:01]

SO WHAT IF WE TURN ON A REPEATING COLA WITHOUT THAT CATCH UP PROVISION? SO THIS IS THE OPTION OF $7.5 MILLION A YEAR ON THE OPERATING SIDE, OR A $75 MILLION PENSION IN 2025.

BASED ON THAT ROUGHLY 3.5% CPI EACH MONTH, THEY WILL GET A 30% COLA.

ON AVERAGE, A RETIREE WILL RECEIVE $28 A MONTH.

OF COURSE, THAT WILL COMPOUND OVER TIME, WHICH IS WHAT 2030 THROUGH 2045 IS SHOWING.

BECAUSE REMEMBER, IT'S A REPEATING COLA EVERY YEAR YOU WILL GET IT.

SO BY 2045 YOU WILL RECEIVE ROUGHLY $470 MORE THAN WHAT YOU WOULD HAVE RECEIVED WITHOUT THE COLA.

HERE'S A LOOK AT IT WITH THE CATCH UP.

SO AGAIN REMEMBER 30% NO KETCHUP WAS $28 WITH A 30% REPEATING COLA.

WITH THE KETCHUP IT WOULD BE ABOUT $127 INCREASE MONTHLY TO THEIR RETIREE ANNUITY PER MONTH.

SO KIND OF SHIFTING GEARS TO RETIREE HEALTH INSURANCE, I MENTIONED EARLIER THAT WE IN 2018 STARTED REALLY WORKING TO TRY TO PRE-FUND OUR UNFUNDED LIABILITY. SO WHAT WE OFFER AS FAR AS RETIREE HEALTH INSURANCE IS A PRE 65 OPTION, WHICH BASICALLY COVERS ALL RETIREES UNDER THE AGE OF 65 AND THEIR DEPENDENTS.

THERE'S A BLENDED OPTION, SAY, IF YOU'RE IF YOU'RE 65 OR YOUR SPOUSE IS OVER 65, BUT YOU'RE NOT, OR VICE VERSA, THAT BLENDED OPTION WILL COME INTO PLAY. AND THEN ONCE YOU HIT 65 YOU WILL GO ON MEDICARE.

AND WE DO PROVIDE A SUPPLEMENT PLAN FOR THAT MEDICARE FOR THOSE THAT ARE MEDICAL ELIGIBLE.

AS FAR AS ELIGIBILITY INTO OUR RETIREE HEALTH INSURANCE WE WE BASICALLY FOLLOW TMR'S RETIREMENT ELIGIBILITY.

SO BACK TO NEED TO BE AGE 60 OR 5 YEARS OF SERVICE.

AND THEN THE ONE CHANGE WE MADE SEVERAL YEARS AGO IS THAT YOU NEED TO HAVE TEN CONSECUTIVE YEARS OF SERVICE TO RETIREMENT IF HIRED JANUARY 2020.

SO WE WE STATED THAT.

SO PEOPLE BEFORE THAT ARE GRANDFATHERED IN AND JUST FOLLOWED THE FIVE YEARS, BUT AFTER 2020, YOU NEED TO HAVE TEN YEARS OF CONSECUTIVE SERVICE.

AND ONE BIG PROVISION IS YOU HAVE TO OPT IN AT RETIREMENT ONLY.

THERE CAN'T BE ANY LAPSE IN PARTICIPATION ONCE YOU'RE ELIGIBLE.

AND THE FINAL PIECE IS PRE 65.

RETIREES HAVE THE BENEFIT OF ENJOYING OUR CITY CARE CLINIC JUST LIKE ALL OF OUR ACTIVE EMPLOYEES.

SO THIS SLIDE.

THIS SLIDE I DEBATED ON PUTTING IN.

BUT WHAT IT WHAT IT'S TRYING TO DO IS SHOW.

THOSE SAME METROPLEX CITIES AND GARLAND IF YOU TAKE THEIR PENSION LIABILITIES.

AND WHAT'S CALLED OPEB LIABILITY WHICH STANDS FOR OTHER POST EMPLOYEE BENEFITS, BUT REALLY JUST MEANS MEDICAL INSURANCE.

AND THE TOTAL.

WHAT IS THE LONG TERM LIABILITY PER CAPITA IN THE METROPLEX VERSUS GARLAND FOR THOSE TWO RETIREE BENEFITS? AND YOU CAN SEE, BECAUSE WE DO NOT HAVE A COST OF LIVING ADJUSTMENT ON T MRS RIGHT NOW, WE ARE AT ABOUT $368.72 PER CAPITA ON LIABILITY TO FUND THAT.

AND THE METROPLEX AVERAGES AT ROUGHLY 505.29 ON THAT METROPLEX AVERAGE.

WHAT I'VE DONE IS TAKEN NOT JUST THEIR UNFUNDED LIABILITY, BUT THE CITIES THAT HAVE ISSUED PENSION BONDS ASSOCIATED WITH THEM BECAUSE THEY WERE TECHNICALLY FOR THIS BENEFIT AND ADDED THOSE BACK IN THE OPEB LIABILITY.

YOU CAN SEE THE CITY OF GARLAND AS WELL OVER THE METROPLEX AVERAGE.

AND THE GIST OF THIS SLIDE IS, IS TO SAY THAT WHAT MOST CITIES HAVE DONE IS THE OPPOSITE OF GARLAND.

THEY HAVE LOOKED TO SUSTAIN COST OF LIVING ADJUSTMENTS FOR RETIREES AND HAD TO REDUCE THIS MEDICAL BENEFIT BECAUSE OF THE COST IS GOING TO CONTINUE TO GO UP.

I MENTIONED EARLIER THAT ABOUT 6.8% A YEAR.

THAT IS WHERE THEY HAVE LOOKED TO CUT THE COST.

SO LET'S LOOK AT PRE 65 RETIREE HEALTH MONTHLY PREMIUMS FOR THE CITY OF GARLAND COMPARED TO THAT METROPLEX AVERAGE OF THOSE CITIES LISTED TO THE TO THE SIDE THERE.

GARLAND PROVIDES A PRE 65 RETIREE ONLY PREMIUM.

THIS IS HOW MUCH THE RETIREE WILL PAY IN PREMIUMS $287 A MONTH.

SO THAT'S WHAT A RETIREE WILL PAY AS OF THIS YEAR.

[02:45:02]

THEN YOU SEE THE PRE 65 WERE AT 632 FOR RETIREE PLUS SPOUSE, AND THE METROPLEX AVERAGE IS 1480 86. AND THE CITY OF GARLAND HOW WE FUND THE CITY SIDE.

SO THIS IS HOW MUCH THE RETIREES PAYING THE CITY CONTRIBUTES $532 PER MONTH PER RETIREE FOR HEALTH INSURANCE.

HERE'S A LOOK AT THE POST 65 RETIREE PLAN GARLAND.

IT'S A 287 AGAIN FOR EMPLOYEE ONLY FOR THAT SUPPLEMENTAL MEDICARE PLAN.

THE METROPLEX AVERAGE IS 601.

IF YOU RETIRE YOU PLUS SPOUSE FOR THIS MEDICARE SUPPLEMENT, WE'RE AT 500 AND THE METROPLEX AVERAGE IS AT 940.

AND AGAIN, WE CONTRIBUTE FROM THE CITY SIDE $532 PER MONTH FOR RETIREES, NO MATTER WHAT PLAN YOU'RE ON, THAT TOTALS ABOUT $5.4 MILLION A YEAR. SO MOVING ON.

WE'RE GOING TO GET INTO SOME HYPOTHETICAL EMPLOYEES.

AND WHAT I WANTED TO DO HERE IS SHOW ONE WHAT IS WHAT IS THE THE MRS BENEFIT OF AN ANNUITY OF THE CITY OF GARLAND COMPARED TO THE METROPLEX.

BUT THEN ALSO LOOK AT IF YOU TAKE THE HEALTH INSURANCE PLANS OF THE METROPLEX AND THE CITY, WHAT IS THAT NET BENEFIT AFTER TAKING INTO CONSIDERATION THE PREMIUMS? SO THIS HYPOTHETICAL EMPLOYEE IS DAN.

SO HE'S HIS HE'S GOING TO RETIRE AT AGE 55.

HE WORKED HERE 30 YEARS AND HIS ENDING SALARY IS ROUGHLY 83,800, WHICH IS BASICALLY THE AVERAGE OF THE CITY OF GA, NOT BASICALLY IS THE AVERAGE OF CITY OF GARLAND. SO HIS RETIREMENT SPAN IS GOING TO BE 31 YEARS.

HIS ANNUAL HEALTH PREMIUMS ARE GOING TO GO UP AT THAT 6.8%.

HIS BENEFITS HERE, HE'S RETIREE ONLY.

HE HAS NO SPOUSE.

ANNUAL CPI ON THE TEAMSTERS SIDE IS 2.5%, WHICH IS WHAT THEIR ACTUARIES USE.

AND BASED OFF OF THAT INFORMATION HIS WHAT'S CALLED A REPLACEMENT RATIO, WHICH JUST MEANS MY ANNUAL SALARY AT THE END OF WHEN I RETIRE WAS 83,800. MY ANNUITY IS GOING TO REPLACE 64% OF THAT METROPLEX AVERAGE.

I'M USING 50% COLA.

AND THEN NOW WE CAN GET INTO THE NUMBERS FOR DAN IN THE I GUESS IS THAT ORANGE OR TAN.

SO WE FIRST OH FIRST IN THE BLUE.

SO GARLAND COLA OF ZERO 3050.

SO RIGHT NOW WE'RE AT ZERO.

THIS INDIVIDUAL FROM GARLAND WOULD HAVE RECEIVED IN TODAY'S DOLLARS HIS BENEFIT UNTIL HE DIES IS ROUGHLY $1.1 MILLION.

IF HE WAS ON THAT METROPLEX AVERAGE 50% COLA, HE WOULD HAVE RECEIVED ROUGHLY 209 OR $210,000 MORE OVER HIS LIFE.

AND THAT IS IN TODAY'S DOLLARS.

ONE THING TO POINT OUT, I'M GOING TO JUST POINT OUT NOW IN THE NOTES, THERE ARE 1799 GARLAND RETIREES RECEIVING THE TMRS BENEFIT. WE HAVE 831 ON THE HEALTH INSURANCE PLAN.

SO I WANTED TO POINT THIS OUT AND WHY I'VE BROKEN IT OUT THIS WAY IS THERE'S OVER HALF OF THE RETIREES WHO ARE NOT ON OUR HEALTH INSURANCE PLAN.

SO WHAT THEY ARE RECEIVING FROM THE CITY OF GARLAND KIND OF STOPS IN THIS ORANGE.

AND THERE CAN BE A MULTITUDE OF REASONS WHY THEY'RE NOT ON OUR HEALTH INSURANCE PLAN.

IT COULD BE THAT THEY HAVE A DIFFERENT JOB WHEN THEY RETIRE, AND THEY'RE ON THAT HEALTH INSURANCE PLAN.

THEY COULD BE ON THEIR SPOUSE'S PLAN MILLIONS OF DIFFERENT REASONS OF WHY THEY'RE NOT ON THE PLAN.

BUT NOW IN THE GREEN, YOU START COMPARING.

OKAY, DAN HAS DECIDED TO TAKE HEALTH INSURANCE OPTION EITHER FROM THE METROPLEX OR FROM THE CITY OF GARLAND.

WHAT IS HIS NET ANNUITY? AND YOU CAN SEE WITH THE 0%, HE'S STILL BETTER OFF RECEIVING A COLA.

AND YOU CAN SEE ON THE 30% GARLAND COLA OPTION, HE HE HE'S BACK IN A BETTER BENEFIT THAN THE METROPLEX WITH A 30% NO RETRO COLA. THIS OPTION IS JANE, SO SHE IS THE SAME AGE AS DAN AT 55, ALSO WORKED 30 YEARS.

SAME SALARY AND RETIREMENT SPAN IS THE SAME AT 31.

THE MAIN DIFFERENCE HERE IS SHE WANTS TO BE RETIREE PLUS SPOUSE.

SHE WANTS TO MAKE SURE HER HUSBAND ALSO HAS HEALTH INSURANCE.

THE MRS OPTIONS DO NOT CHANGE FOR THIS INDIVIDUAL BECAUSE IT'S THE SAME SALARY.

BUT YOU CAN SEE NOW BECAUSE THE OUR SPOUSE PLAN IS SO MUCH BETTER THAN THE METROPLEX AVERAGE.

[02:50:03]

BUT AGAIN I HAVE IN THE NOTES ON ALL OF THESE.

REMEMBER, OUR MEDICAL INSURANCE PLAN ONLY HAS 831 RETIREES AND WE HAVE 1799 ON TEAM MRS. AND SO HERE'S A LOOK AT JOHN.

SO JOHN IS GOING TO RETIRE NOT AT 55 BUT HE'S GOING TO RETIRE AT AGE 61.

SO HE'S GOING TO SPEND LESS TIME ON OUR PRE 65 MEDICAL INSURANCE PLAN.

HIS TENURE IS 20 YEARS AND IT'S ENDING.

SALARY IS THE SAME.

I'VE USED THE SAME SALARY IN ALL FOUR SCENARIOS.

AND I WILL SAY THAT IS THE ONE THING THAT CAN SKEW ALL THIS DATA.

BUT WHAT WHEN EVERYONE IS DIFFERENT.

SO I HAVE TO GO WITH JUST THE AVERAGE SALARY AT THIS POINT.

SO YEAH, HE'S RETIREE ONLY ON HIS HEALTH INSURANCE PLAN.

SO LET'S LOOK AT WHAT JOHN'S ANNUITY LOOKS LIKE.

SO WITH THE 0% COLA HE'S RECEIVING ROUGHLY $100,000 LESS THAN THE METROPLEX.

BUT THEN WHEN YOU THROW IN THE RETIREE BENEFIT OF THE MEDICAL INSURANCE, HE IS BASICALLY ON PAR WITH THE WITH THE METROPLEX.

AND YOU PUT IN THAT 30% COAL, YOU CAN SEE THAT TECHNICALLY IT IS A HYPOTHETICALLY, IT WOULD BE A BETTER BENEFIT IN THAT 50% AND EVEN STRONGER BENEFIT.

AND THIS IS THIS IS MARIO.

SO HE IS THE SAME SITUATION AS THE PREVIOUS.

BUT HE WANTS TO ADD THE SPOUSE PLAN AS WELL.

SO HE'S RETIRING WHEN HE'S 61.

HE HAS 20 YEARS OF SERVICE, BUT HE'S GOING.

THE ONLY THING CHANGING HERE IS HE'S RETIRING PLUS SPOUSE.

SO AGAIN, TAMARA'S OPTION ALONE.

OBVIOUSLY MUCH BETTER OFF WITH THE METROPLEX WHEN IT COMES TO ANNUITIES.

BUT IF HE DECIDES TO TAKE OUR HEALTH INSURANCE PLAN, IT IS A BETTER BENEFIT FOR THIS INDIVIDUAL.

SO WHEN IT COMES TO FUNDING OPTIONS, THERE'S REALLY A MILLION WAYS TO SKIN THIS CAT.

SO BUT WE'VE TRIED TO BOIL IT DOWN INTO FOUR MAIN OPTIONS.

ONE IS A PENSION OBLIGATION BOND, WHICH IS ROUGHLY 75 MILLION FOR THE NO CATCH UP 30% FUND THROUGH OPERATIONAL CUTS OR A TAX RATE INCREASE.

AT THIS MOMENT.

YOU SAW ALISON SLIDE.

FITTING THIS IN ON THE OPERATIONAL SIDE IS NEXT TO IMPOSSIBLE WITHOUT REDUCING SERVICES OR INCREASING THE TAX RATE.

OTHER OPTIONS IS NO COLA AND WE TRY TO BOOST OUR RETIREE HEALTH INSURANCE FUNDING.

BUT REMEMBER ONLY ABOUT HALF OF OUR RETIREES ARE ON MEDICAL INSURANCE.

AND THE FINAL OPTION IS STATUS QUO ON ALL RETIREMENT BENEFITS.

WE CONTINUE TO DO WHAT WE'VE BEEN DOING.

WE CONTINUE TO TRY TO PRE-FUND OUR RETIREE HEALTH INSURANCE, AND WE LEAVE THE COLA AT ZERO.

NEXT STEPS.

SO WE'RE GOING TO HAVE A PUBLIC ENGAGEMENT.

WE'VE SCHEDULED A PUBLIC HEARING TO HEAR FROM ALL OF OUR RETIREES, ALL OF OUR EMPLOYEES ON TUESDAY, JULY 16TH.

SO THERE WILL BE A PUBLIC HEARING HELD ON THAT DATE TO GET INPUT FROM NOT JUST OUR RETIREES, BUT OUR EMPLOYEES AND ANYONE ELSE CITIZENS, ANYONE ELSE THAT WANTS TO SPEAK ON THIS TOPIC.

WE PROVIDED A PROPOSED DECISION TIMELINE, SO WE WOULD LIKE TO DELIBERATE ON THIS AGAIN ON SATURDAY, AUGUST 17TH AT THE BUDGET SPECIAL WORK SESSION. THEN AGAIN IF NEEDED ON TUESDAY, AUGUST 27TH AT THAT SPECIAL WORK SESSION.

ONE THING TO TAKE INTO NOTE IS IF WE ISSUE PENSION BONDS, WE WILL NEED TO GET TMRS BOARD APPROVAL AS WELL.

JUST AS A NOTE OF CAUTION ON THE PENSION BOND BOND ROUTE, WHAT WE ARE DOING AND PROPOSING FOR PENSION BONDS HAS NOT BEEN DONE, BUT I DO NOT THINK IT WILL BE AN ISSUE WITH ONE THE THE TMS BOARD OR THE ATTORNEY GENERAL'S OFFICE TO ISSUE THE BONDS AND WHY I'M SAYING THIS IS MOST CITIES, WHAT THEY DO IS THEY FUND THROUGH A PENSION BOND A CURRENT UNFUNDED ACTUARIAL ACCRUED LIABILITY.

WHAT WE'RE LOOKING TO DO IS ADD A BENEFIT AND THEN FUND IT THROUGH PENSION BONDS.

SO WE HAVE A LITTLE KINK IN HOW WE'RE PROPOSING THAT IF WE GO PENSION BOND ROUTE BUT WE WOULD STILL NEED TO GET TAMARA'S BOARD APPROVAL.

I'M NOT ANTICIPATING ANY ISSUES THERE.

THEY'VE NEVER NOT APPROVED ONE.

BUT THEY DO MEET ON SEPTEMBER 19TH.

IF WE MISS THAT DATE, WE'LL NEED TO DO DECEMBER 12TH.

IF WE GO THE OTHER OPTION OF LOOKING TO DO A TAX RATE INCREASE, NOVEMBER ELECTION WILL BE REQUIRED.

[02:55:04]

AND WHAT WHAT THEY'VE DONE IS BASICALLY COMPRESSED THE TIMELINE.

SO IF YOU WANT TO THINK ABOUT THE TAX RATE INCREASE THIS YEAR, WE'RE GOING TO HAVE TO PUSH OUR BUDGET DELIBERATIONS UP INTO JULY, WHICH MEANS THAT WE'RE BASICALLY GOING TO BE DOING ALL OF OUR BUDGET BASED OFF OF ESTIMATES FROM DCAD, BECAUSE WE DO NOT GET OUR FINAL DCAD NUMBERS TO JULY 25TH, BUT WE WOULD HAVE TO PUSH THAT UP SO THAT WE COULD CALL A VOTE AND HAVE THAT PUT ON THE NOVEMBER ELECTION.

OR YOU CAN WAIT TILL THE NEXT YEAR AND WE CAN PLAN FOR THIS, YOU KNOW, IN A YEAR IN ADVANCE AND THEN TAKE IT AS A TAX RATE INCREASE.

AND WITH THAT, I'M SURE YOU ALL HAVE QUESTIONS.

WELL, I YOU KNOW, I KNOW LEADING UP TO THIS THE COUNCIL HAS SORT OF BEEN BRIEFED ON, ON, ON KIND OF HOW THIS, THIS PLAYS OUT.

AND I APPRECIATE YOU PUTTING TOGETHER FROM WHEN, FROM WHEN I MET WITH YOU AND WITH THE CITY MANAGER OF PUTTING TOGETHER THE TIMELINE OF HOW WE GOT HERE AND, AND ALL OF THE THINGS THAT HAVE OCCURRED THAT.

BECAUSE, YOU KNOW.

TO KNOW WHERE IT STARTED, WHERE IT END, YOU KNOW.

AND EVERYTHING IN BETWEEN THAT THAT CURRENT COUNCIL MEMBERS MAY NOT BE AWARE OF AND WHAT THAT PROCESS WAS.

AND SO I APPRECIATE THAT.

COMING UP, I HAVE MAYOR PRO TEM MOORE.

THANK YOU, MR. MAYOR. AND I WANT TO ECHO THAT SAME SENTIMENT.

THAT STORY WAS VERY ENLIGHTENING TO HEAR WHAT HAS HAPPENED OVER THE YEARS.

I NEED TO ASK A QUESTION BEFORE I MAKE MY STATEMENTS.

THE SUPPLEMENTAL AS FAR AS THE INSURANCE IS CONCERNED, WHO PAYS? DID THE RETIREE PAY THAT PREMIUM OR DOES THE CITY PAY THAT PREMIUM? THE RETIREE PAYS THAT PREMIUM, BUT WE'RE GIVING A, A A SUBSIDY TO THAT.

EXACTLY. BECAUSE IT WOULD NORMALLY BE WHATEVER THE REGIONAL AVERAGE IS, THEY'D BE PAYING THAT ENTIRE AMOUNT.

BUT WE'RE ACTUALLY PAYING A PIECE OF THAT, RIGHT? WOW. OKAY.

I HAD OPPORTUNITY TO MEET WITH A COUPLE OF GROUPS PRIOR TO COMING HERE TODAY, AND JUST, YOU KNOW, I'M.

ALL I'M ASKING NOW IS JUST AFFIRM.

CONFIRM WHAT I'M SAYING, AND THEN THAT WILL HELP ME IN IN THE MANNER BY WHICH I GO FORWARD.

THE FIRST THING IS IT APPEARS THAT WE DON'T REALLY HAVE AN OPTION IN THE WAY OF IF WE ARE OR ARE NOT GOING TO IMPLEMENT A COAL.

AND WHAT I MEAN BY THAT IS 90%, IT SEEMS, OF OTHER COMMUNITIES AROUND US.

HAVE A CALLER, IS THAT CORRECT? CORRECT. AS FAR AS THE METROPLEX, THE ONLY CITIES I'M AWARE OF THAT DO NOT HAVE A COLA IS FARMERS BRANCH AND DUNCANVILLE.

I KNOW THAT THE CITY OF AMARILLO AND THE CITY OF WACO HAVE BOTH TAKEN ADVANTAGE OF THIS.

NO CATCH UP AND REINSTATED A 30% NO CATCH UP.

OKAY. AND BECAUSE WE DON'T HAVE THE COLA, THAT MEANS THAT OUR EMPLOYEES ARE NOT GETTING THE SAME ADVANCES, THEIR RAISES AND THINGS OF THAT NATURE AS OTHER COMMUNITIES ARE GETTING, WHICH THEN MAKES IT VERY DIFFICULT FOR US THEN TO NOT ONLY RETAIN EMPLOYEES, BUT TO ALSO HIRE THEM.

WOULD THAT BE CORRECT? CHRISTIE. COME ON. I'M PROBABLY NOT THE BEST PERSON TO ANSWER THAT ONE, BECAUSE I'M JUST STRICTLY NUMBERS.

I DON'T KNOW IF. JUDD. YOU WANT TO TAKE THAT OR CHRISTIE HERE IF.

HELP ME SOMEBODY. YEAH.

AND I'LL I'LL PROVIDE SOME CONTEXT AND MY THOUGHTS ON THAT.

IT'S REALLY HARD TO POINT TO ANY DATA POINT THAT WOULD BACK EITHER POSITION ON ON RECRUITMENT AND RETENTION OF EMPLOYEES.

I WILL I'LL THE CLOSEST DATA POINT WE'VE GOT IS ON THE CIVIL SERVICE SIDE AND AND THIS HAS TO DO WITH RECRUITING.

YOU KNOW, WE HAVE UPWARDS OF 400 INDIVIDUALS THAT SIGN UP TO TEST FOR THE FIRE DEPARTMENT.

AND SO IF THAT'S THAT IS A HARD NUMBER.

WE KNOW WHAT THAT INDICATE.

IT'S A BIG NUMBER.

SO THEY WANT TO BE HERE.

WE DON'T HAVE A COLA. NOW THERE'S SOME INDICATION WE JUST GRADUATED OUR LARGEST POLICE ACADEMY CLASS IN HISTORY.

SO AGAIN I THINK THERE'S THERE'S COLA IS ONE PIECE OF THE PUZZLE WHEN IT COMES TO RECRUITING EMPLOYEES AND RETAINING THEM HERE.

SO AGAIN I IT'S HARD TO DEFINITIVELY SAY ONE WAY OR THE OTHER, BUT AT LEAST FROM THE DATA WE'VE GOT, YOU KNOW, WHILE WE DO HAVE VACANCIES HERE AT THE CITY YOU KNOW, WE'RE NOT WE ARE ABLE TO RECRUIT FOR POSITIONS, PARTICULARLY ON THE CIVIL SERVICE SIDE.

AND, YOU KNOW, THE OTHER FACTOR IN THAT IS THAT WE DO HAVE THE RSP BENEFIT THAT NOT ALL COMMUNITIES HAVE AS WELL.

[03:00:05]

CAN YOU TELL US A LITTLE BIT MORE ON THAT.

THAT'S THE RETIREMENT STABILITY BENEFIT.

SO THAT'S WHAT WE'RE TRYING TO PROVIDE IN LIEU OF SOCIAL SECURITY FOR POLICE AND FIRE.

SO THEY DON'T CONTRIBUTE TO SOCIAL SECURITY.

CITY SET UP I THINK IN 2018 THE RSV TO TRY TO REPLACE THAT SOCIAL SECURITY BENEFIT THAT CIVIL SERVICE EMPLOYEES DON'T HAVE.

OKAY. FROM THE CONVERSATIONS THAT I'VE HAD, IT DOES APPEAR THAT OUR EMPLOYEES CERTAINLY WANT US TO IMPLEMENT THE COLA.

AND IF WE WERE GOING TO GO ABOUT DOING THAT, BASED ON EVERYTHING THAT I'VE HEARD SO FAR IN THE WAY OF WHERE OUR BUDGETS ARE AND INFLATION AND HOW WE'RE LOOKING FOR FUNDS AND SO ON AND SO FORTH. AT THIS POINT, IT WOULD APPEAR TO ME THAT IF WE WERE GOING TO DO IT, IT WOULD BE THE BOND INITIATIVE.

YOUR THOUGHTS? YEAH.

AND SHORT OF A TAX RATE INCREASE TO SUPPLEMENT THE OPERATION AND MAINTENANCE SIDE OF OUR, OF OUR OPERATIONS THE THE ONLY WAY TO DO THIS IS THROUGH A PENSION OBLIGATION BOND.

NOW, I WILL CAVEAT THAT WITH WHEN WE SAY WE WERE TO ISSUE THAT $75 MILLION, ESSENTIALLY WHAT WE DO IS HAND THAT MONEY OVER TO TEAMS. THEY INVEST IT IN WAYS THAT WE CAN'T IN THE MARKET ON AVERAGE, THEIR GAINS.

I THINK THEIR ACTUARIES PROJECT IS AT SIX AND THREE QUARTERS, 6.75.

SO AS LONG AS THE MARKET IS PERFORMING WELL AND THEY MEET THAT 6.75, ALL IS WELL.

BUT IF THERE'S A DOWNTURN SIMILAR TO WHAT HAPPENED AROUND COVID, WHERE THE MARKET CRASHES AND TMS DOES NOT MEET THAT 6.75 WITH THE MONEY WE GAVE THEM YOU KNOW, THEY'RE GOING TO HIT OUR OPERATIONS SIDE OF THE TMS RATE, AND WE'RE GOING TO HAVE TO MAKE THAT UP IN SOME WAY.

AGAIN, MATT DIDN'T BRING HIS CRYSTAL BALL TO ME, SO I CAN'T TELL YOU THAT'S GOING TO HAPPEN OR NOT, BUT.

WELL, I WILL SAY IT WILL HAPPEN.

IT'S JUST HOW MUCH OF THAT IS GOING TO TRICKLE OVER TO.

WHAT YOU SEE IN THIS COLUMN IS OUR IS OUR FULL RATE.

WE'RE AT 11.2 RATE.

NOW, IF THE MARKET, YOU KNOW, SOMEHOW DOESN'T PERFORM WHERE IT NEEDS TO, EVENTUALLY TMS IS GOING TO COME LOOKING FOR THAT MONEY FROM US FROM SOMEWHERE.

SO EVEN THOUGH WE ISSUE A PENSION BOND, THAT DOESN'T MEAN THAT IT'S NOT GOING TO HIT THE OPERATION SIDE OF THE BUDGET, WHICH IS REALLY, REALLY TIGHT.

MY DISCUSSIONS REVEALED THAT WHEN IT COMES TO MAYBE HAVING TO LOOK AT BENEFITS IN ORDER TO IMPLEMENT THE COLA, MOST OF THE PEOPLE I'VE TALKED TO DON'T EVEN WANT TO.

THAT'S NOT A BEGINNING FOR THEM.

THEY ENJOY THE BENEFIT SIDE.

AND I GUESS FOR ME, AT THIS POINT, I REALLY DO FEEL THAT EVEN IF WE IT WAS KIND OF A SURPRISE WHEN I LOOKED AT THIS 30%. AND IN THE FIRST YEAR WE'RE TALKING $28 IN ADDITION.

I MEAN, THAT'S THAT'S NOT A LOT OF MONEY.

BUT IF WE LOOK 20 YEARS DOWN THE ROAD, $445 OR MORE AND ALL OF A SUDDEN IT DOES, AND SO IT'S NOT SO MUCH THAT THE PRESENT EMPLOYEES ARE GOING TO BENEFIT SO MUCH. IT SEEMS THAT FUTURE EMPLOYEES ARE GOING TO BE THE ONES WHO BENEFIT THE MOST, WOULD YOU SAY? WELL, PRESENT EMPLOYEES WILL ALSO BENEFIT.

I MEAN, ANY EMPLOYEE WOULD BE CRAZY NOT TO WANT A COLA.

I MEAN, THAT'S RIGHT, EVERYONE WANTS A COLA BECAUSE IT'S MORE MONEY IN THEIR POCKET.

SURE. ONE THING I WANTED TO ADD ON ON JUDD'S COMMENT EARLIER, THE THREE CITIES IN RED THAT ISSUED PENSION BONDS.

AND THIS IS JUST A WORD OF CAUTION TO EXPAND ON WHAT JUDD WAS TALKING ABOUT.

THEY ALL THREE ISSUED PENSION BONDS TO REMOVE THEIR UNFUNDED LIABILITY.

BUT YOU CAN SEE ALL THREE OF THESE CITIES HAVE AN UNFUNDED LIABILITY NOW.

AND THE REASON IS, IS BECAUSE NO ONE HAS A CRYSTAL BALL.

NO ONE CAN PREDICT THE MARKET.

AND WHAT HAPPENED TO SEVERAL YEARS AGO IS TMR'S EXPERIENCED ROUGHLY A 7% LOSS IN INVESTMENT.

WELL, THAT HAS TO FLOW THROUGH RATES.

YEAH. LONG TERM THEY'RE GOING TO THEY'RE GOING TO MAKE MONEY.

IN LONG TERM IT'S GOING TO LOOK GOOD.

BUT LITTLE HICCUPS ALONG THE WAY.

THEY WILL ADJUST THEIR EXPERIENCE BASED OFF EXPERIENCE.

AND YOU CAN SEE THE IMPACTS THERE.

AND IT'S IT'S NO DIFFERENT ON THE OPERATING SIDE.

SO THE RISK IS ON THE OPERATING SIDE TOO.

YOU GO THE OPERATING ROUTE.

REMEMBER OUR OUR REVENUES ARE HEAVILY DEPENDENT ON SALES TAX, PROPERTY TAXES WHICH ARE DRIVEN BY THE ECONOMY.

AND SENATE BILL TWO IS GOING TO CAP US.

SO WHEN I SAY 1.8 CENT TAX RATE EQUIVALENT FOR A COLA, THAT COULD BE ERODED DOWN OVER TIME BASED OFF OF THOSE CAPS.

SO ON EITHER SIDE, IT'S A DIFFICULT DECISION BECAUSE YOU'RE MAKING A LONG TERM COMMITMENT TO PROVIDE A MUCH, YOU KNOW, A WONDERFUL BENEFIT.

[03:05:05]

NOT NECESSARILY WHAT I MEAN.

NEXT YEAR WE CAN PREDICT, BUT WE'RE TALKING 20 YEARS OUT.

AND ONE THING TO REMEMBER ON THE PENSION BOND ROUTE IS ONCE WE DO IT, WE'VE DONE IT.

SO WE ISSUE A 20 YEAR NOTE FOR PENSIONS.

INVESTORS ARE GOING TO WANT TO GET PAID AND I'M GOING TO PAY THEM.

SO WE WILL BE PAYING THAT AMOUNT FOR 20 YEARS.

SO I'M SAYING THAT THAT THAT MEANS THAT WE'RE GOING TO THE BACK TO THE LONG TERM ASPECT OF THIS DECISION.

ONCE WE DO IT, WE'VE DONE IT.

AND THEN FINALLY, AS OUR FINANCIAL EXPERT, DO YOU HAVE A SUGGESTION? ANY SUGGESTIONS AS TO WHICH ROUTE I'LL TAKE IT AGAIN.

YOU CAN TELL ME AGAIN. WHAT DO.

YOU HAVE SOMETHING? NO.

JASON. ADJACENT.

YEAH. RIGHT. ADJACENT.

DO YOU HAVE AS AN EMPLOYEE? I WOULD LOVE A ANY SORT OF COLA WHEN I RETIRE.

BUT MY JOB IS TO MAKE SURE THE CITY OF GARLAND IS SUSTAINABLE LONG TERM FINANCIALLY.

AND ULTIMATELY, WHAT I TRY TO DO IS PROVIDE YOU ALL OPTIONS.

AND THAT'S WHAT WE'RE HERE.

YOU KNOW, WE'VE PROVIDED A CAPACITY, WE'VE SET IT ASIDE, WE'VE GIVEN THAT OPTION.

BUT AS FAR AS WHAT IS THE BEST FOR THE CITY, THAT'S WHY Y'ALL GET PAID THE BIG BUCKS, GUYS.

OH THANK YOU SO MUCH.

OH, YOU'RE JUST FULL OF IT TODAY.

THANK YOU. THANK YOU, MR. MAYOR. VERY GOOD.

GOOD ANSWER. MATT.

I WAS WONDERING HOW YOU WERE GOING TO GET THERE.

COUNCIL MEMBER. DUTTON.

SO MATT SAID ONCE WE DO IT, WE'VE DONE IT.

SO IF WE CAN READ BETWEEN THE LINES, THAT MEANS IF WE DO A PENSION BOND, WE ARE STUCK.

IF WE HIT ANOTHER 2008 RECESSION.

SO THAT COULD POTENTIALLY BREAK THE CITY.

JUST DONE.

HOWEVER, I AGREE THAT WE NEED SOME SORT OF COMPENSATION FOR FOR OUR RETIREES AND FUTURE RETIREES.

WE TALK ABOUT CIVIL SERVICE SIDE AND OUR POLICE CAN HIRE ON AND WORK FOR 20 YEARS AND DO A LATERAL, A LATERAL. WHAT'S IT CALLED.

YEAH. THAT ONE.

AND BUT OUR FIRE, OUR FIRE DEPARTMENT CANNOT.

IF THEY MOVE AFTER A CERTAIN TENURE, THEN THEY ARE STUCK GOING BACK TO SQUARE ONE.

SO WHILE POLICE AND YOU KNOW, OTHER STAFF CAN GO AND GET ANOTHER JOB AT ANOTHER CITY AND START OFF THE SAME, WE HAVE OTHERS THAT CAN'T DO THAT.

SO I THINK THAT WE NEED TO BE MINDFUL OF ALL OF THE SITUATIONS, AND WE'RE NOT GOING TO MAKE EVERYONE HAPPY, OBVIOUSLY.

AND IT'S NOT FUN TO HAVE TO MAKE THAT CHOICE, BUT WE DO NEED TO BE MINDFUL OF THOSE THOSE THINGS GOING FORWARD.

SO JUST THOUGHT I WOULD THROW THAT OUT THERE.

THANK YOU. AND COUNCILMEMBER BASS.

THANK YOU MAYOR. SO OF COURSE, ONE THING WE ALWAYS HAVE TO LOOK AT, AND AS MATT WAS SAYING, THIS IS WHY WE GET THE BIG BUCKS, RIGHT? THAT'S WHAT WE'RE HERE TO MAKE THE DECISION.

SO WE HAVE TO FIGURE OUT, FIRST OF ALL, INDIVIDUALLY WHAT WHAT ARE OUR OBJECTIVES? YOU KNOW THERE'S THE OBJECTIVE QUALITY OF LIFE RELATED TO HEALTH IS THE OBJECTIVE QUALITY, QUALITY OF LIFE RELATED TO RETIREES.

ECONOMIC STABILITY IS THE OBJECTIVE TO ATTRACT NEW EMPLOYEES.

IS THE OBJECTIVE EMPLOYEE RETENTION ALL OF THOSE THINGS WE SHOULD CONSIDER WHEN WHEN CONSIDERING WHETHER TO DO A COLA OR WHETHER TO DO ANYTHING WITH ANY RETIREMENT BENEFITS. I DON'T KNOW.

I THINK PERSONALLY, I THINK WE NEED TO LOOK A LITTLE DEEPER INTO THE HEALTH BENEFIT SIDE OF IT, TOO.

SO WE'RE LOOKING AT THE WHOLE, YOU KNOW, HOLISTIC, TAKING A HOLISTIC APPROACH TO IT.

SO THAT'S JUST MY TWO THOUGHTS TO START OFF WITH.

THANK YOU. OKAY.

DEPUTY MAYOR PRO TEM LUCHT.

ON SLIDE 79 TALKS ABOUT RETIREE BENEFITS.

TMRS THE AGE 60, WITH FIVE YEARS OF SERVICE, 20 YEARS WITH NO AGE REQUIREMENT.

ARE THOSE CONDITIONS SET BY THE CITY OR TMRS OR THE STATE OF TEXAS, OR HOW HOW ARE THOSE CONDITIONS DEFINED? I BELIEVE YOU CAN DO ON THEIR SET BY CAMERAS SO THE CITY CAN CHOOSE.

BUT I BELIEVE YOU CAN ACTUALLY GO UP TO 25 YEARS.

WHAT ABOUT THE AGE? WHAT ABOUT THE.

I BELIEVE THAT SERVICE.

[03:10:01]

AND THEN SECONDLY HOW MANY OF THE 2800 CURRENT EMPLOYEES ARE HAVE WORKED OVER 20 YEARS OR ARE AT AGE 60 AND ABOVE? I'D HAVE TO FOLLOW BACK UP WITH THAT.

THAT'S A GREAT QUESTION. I CAN GET A RESPONSE BACK TO FULL COUNCIL ON THAT.

AND ON THE NEXT SLIDE WHERE IT SHOWS RETIREMENT RETIREE BENEFITS THAT 7% MANDATORY PARTICIPATION, IT'S MATCHED 2 TO 1 BY THE CITY.

WHAT ARE THOSE COSTS? WHAT WAS THAT NUMBER IN FY 24, 2324? THAT HE DOES HAVE I DO HAVE THAT 22.2 MILLION FOR THE 7% OR FOR THE CITIES MATCHING.

THAT'S THE CITY'S MATCH.

WHAT WAS THAT, 22.

22.2 2.2 MILLION.

SO EMPLOYEE EMPLOYEES CONTRIBUTION WAS 11.1.

THAT'S THE EMPLOYER? YEAH, THE EMPLOYER CONTRIBUTION.

HE GOT IT.

AND THEN ON SLIDE 86.

WHICH DO ANY OF THESE FUNDING OPTIONS AFFECT OUR BOND RATING? I MEAN, IT WOULD SEEM THAT IF YOU GO INTO THE OPERATIONAL FUND, THAT WOULD AFFECT THE BOND RATING IN SOME WAY.

I DON'T KNOW THE FITCH, THE ALL OF THOSE.

DO ANY OF THOSE AFFECT THAT? WELL, IT'S WITH THE BOND RATINGS.

I WOULD REALLY PROBABLY GO WITH YOU NEED TO LOOK AT IT IN TOTALITY.

SO WHAT THEY'RE LOOKING AT IS NOT YES, THERE WILL BE QUESTIONS ASSOCIATED WITH WHY YOU ISSUED A PENSION BOND.

AND THE ARGUMENT WILL BE IS WE WERE PROVIDING A BENEFIT AND YES, IT INCREASED OUR OUTSTANDING DEBT, BUT WE HAVE SIMPLY JUST LOOKING TO MOVE IT, YOU KNOW, MOVE IT OFF OF THE UNFUNDED LIABILITY SIDE TO THE DEBT SERVICE SIDE.

SO NOW IT FLOWS INTO THE DEBT SERVICE CALCULATIONS FOR RETIREES OR RATING AGENCIES.

I'M SORRY. SO WHAT THEY'RE LOOKING AT IS IT IN TOTALITY.

AND SO WHEN YOU'RE LOOKING AT THAT 315 MILLION, THE BIG THING WITH COLA IS IT'S AN ISSUANCE OF 75 MILLION IMMEDIATELY.

TYPICALLY WHAT WE WANT TO DO IS TRY TO SPAN OUT DEBT ISSUANCES OVER TIME.

SO THAT'S ONE THING THAT THEY MAY LOOK AT.

BUT WE WE HAVE WORKED WITH OUR FINANCIAL ADVISORS, AND WE DON'T ANTICIPATE WITH THE 315 MILLION, EVEN IF WE WERE TO DO 75 MILLION, A REDUCTION IN OUR RATINGS ON THE PENSION ROUTE, IF WE WENT THE OPERATING ROUTE YOU'RE YOU'RE GOING TO HAVE TO CUT SERVICES OR RAISE THE TAX RATE IN ORDER TO GET THAT FIT INTO THE EQUATION.

AND AS LONG AS THAT OCCURS, THEY'RE LOOKING AT IT IN TOTALITY, AS LONG AS YOU ARE STILL SHOWING THAT YOU'RE BRINGING IN REVENUE AND SHOWING THAT YOU'RE COVERING YOUR EXPENDITURES, THEY WOULD BE FINE.

BUT ON THE PENSION BOND ROUTE, THERE WILL BE QUESTIONS.

BUT WE'VE HAD LOTS OF DISCUSSIONS WITH OUR FINANCIAL ADVISORS REGARDING THIS, BUT I CAN'T PROMISE YOU IT WON'T BE A BOND RATING REDUCTION.

BUT FROM OUR LOOK AT IT, WE THINK THAT IT WILL BE FINE.

I'M EXTREMELY LEERY OF ISSUING PENSION BONDS FOR THIS.

I'M ALSO NOT IN FAVOR OF ATTACHING IT TO THE GENERAL FUND.

I WOULD PREFER TO SEE THIS GO TO THE VOTERS.

I WOULD LIKE TO SEE A 50% COLA WITH A CATCH UP IF POSSIBLE, OR THE 70% WITHOUT THE CATCH UP.

AND I WOULD LIKE TO DO IT NEXT NOVEMBER.

THANK YOU. OKAY.

COUNCIL MEMBER. THIS NOVEMBER.

NEXT. COUNCILMEMBER WILLIAMS. THANK YOU. MAYOR. JUST THREE THINGS.

ONE, I DON'T KNOW THE NUMBERS.

I DON'T HAVE THE NUMBER OF SLIDES LIKE MY COUNTERPART OVER THERE.

I CAN'T REMEMBER THOSE NUMBERS, BUT ONE APPRECIATE THE SLIDE THAT GIVES A HISTORY BACKGROUND.

ON ON THIS.

I DON'T KNOW WHAT NUMBER SLIDES YOU HAD.

YOU HAD THERE.

WHAT? NO. COUNCIL.

BUT I WAS STILL AROUND THE CITY, PARTICULARLY THE 2009.

AND WE ALL KNOW WHAT THAT THE PIECE THAT THAT CHAPTER IN 2009, IT WAS NOT A VERY PLEASANT ONE AND I WOULD I WOULD BE VERY CONCERNED IF WE HAD A REPETITION OF 2009.

IT TOOK A WHILE TO RECOVER FROM 2009.

I'M NOT SURE. WE I'M NOT SURE WE'RE ALWAYS WE'RE ALREADY THERE.

SECONDLY, MATT, WHAT YOU AGAIN, YOU WOULD START TO TALK ABOUT THE SISTER CITIES THAT ARE AROUND THAT ARE ACTUALLY THAT THAT HAVE ACTIVATED COLORS AND WITH AND YOU MENTIONED THE THE HOUSE BILL THAT THAT THAT PROVIDED THE OPTION

[03:15:07]

WHICH OF THESE CITIES WOULD YOU SAY AGAIN, OR ANY OF THESE CITIES DOING CATCH UP WITH THEIR ACTIVE COLORS? NOW, ANY OF THE CITIES THAT I'M NOT AWARE OF ANY, BUT I HAVEN'T ASKED, WE CAN FOLLOW UP TO SEE IF THERE ARE ANY CITIES THAT ARE LOOKING TO ADD A COLA THIS YEAR WITH THE CATCH UP, THE THE TWO CITIES THAT I MENTIONED EARLIER, CITY OF AMARILLO AND CITY OF WACO, TOOK ADVANTAGE OF THIS HOUSE BILL AND DID A 30% NO CATCH UP.

OKAY, SO I'D BE INTERESTED IN KNOWING WHICH OF THE, I GUESS THE METROPLEX AREA CITIES THAT HAVE THAT HAVE ACTIVE COOLERS, WHETHER OR NOT THEY ARE USING THE CATCH UP PROVISIONS OR NOT.

OH, AS FAR AS THIS LIST RIGHT HERE.

YES. ALL I MEAN, ALL OF THESE ARE ALREADY WERE PROVIDING THESE COLAS.

SO THEY'RE NOT SO TO MY KNOWLEDGE LOOKING TO HAVE ANY.

SO THEY'RE NOT. YEAH. AND THEY WOULD HAVE BEEN CATCH UP BECAUSE THEY WOULD HAVE BEEN UNDER THE PREVIOUS HOUSE BILL.

THE PREVIOUS HOUSE BILL.

CORRECT. THEY WOULD NOT. OKAY.

THAT'S THAT'S WHAT I WASN'T SURE ABOUT.

OKAY. ALL RIGHT.

OKAY. AND.

LAST QUESTION PROBABLY TO MAYOR AND CITY MANAGER ON THE PUBLIC ENGAGEMENT SO THAT THE AUGUST, AM I LOOKING FOR THAT SHEET, THE PUBLIC HEARING SESSION? THAT'S A SINGLE ITEM.

IT'S GOING TO BE A SINGLE ITEM AGENDA, RIGHT? AM I RIGHT ABOUT THAT? IS THAT A SINGLE ITEM? THAT'S A REGULAR MEETING NIGHT.

IS IT? WE WOULD ADD IT TO WHATEVER ELSE IS ON THE AGENDA.

AND AGAIN, THIS IS THIS IS WHAT WE'RE PITCHING OUT THERE.

THERE'S THERE'S AN OPTION.

COUNCIL COULD ALSO SAY, HEY, WE WANT TO HOLD A SPECIAL MEETING AND DO A PUBLIC HEARING FOR ENGAGEMENT.

YOU KNOW, AGAIN, MATT DIDN'T BRING HIS CRYSTAL BALL, SO I DON'T KNOW HOW MANY PEOPLE WOULD SHOW UP FOR FOR THE PUBLIC HEARING.

BUT IN TALKING WITH THE MAYOR, WE WE DECIDED AT LEAST TO PITCH THIS AS LET'S PIGGYBACK ON AN EXISTING MEETING AND, AND AND SEE, SEE WHAT KIND OF TURNOUT WE GET.

BUT WE'RE COMMITTED TO PROVIDING AN OPPORTUNITY FOR STAKEHOLDERS TO PROVIDE SOME INPUT HERE, AND I WANTED TO JUST PITCH THIS AS AN OPTION.

OKAY. WELL, I WOULD LIKE FOR US TO CONSIDER GOING WITH THAT AUGUST THAT THAT MEETING, BUT ALSO DEPENDING ON.

I'D LIKE TO HEAR MAXIMUM FEEDBACK.

AND IF IF WE'RE NOT ABLE TO ACCOMMODATE THAT AND THAT AS A PART OF OUR REGULAR AGENDA, THEN I'D LIKE TO SEE AN ADDITIONAL A SINGLE ITEM AGENDA TO ENSURE THAT WE HAVE HAVE GIVEN THE PUBLIC AN OPPORTUNITY TO, TO PROVIDE THEIR INPUT ON THIS. IF COMING OUT OF THE REGULAR MEETING AGENDA ITEM, I'M NOT SURE WHEN, BUT IF WE COULD WORK, IF WE COULD CONSIDER THAT BECAUSE YOU NEVER KNOW.

YOU NEVER KNOW WHAT THAT LEVEL OF PARTICIPATION IS GOING TO BE.

BUT I'D LIKE TO AT LEAST KEEP THAT OPTION OPEN SO THAT SO THAT IF, IF NEED BE, PUT IT ON THERE AS A PLACEHOLDER OR SOMETHING ONCE, ONCE YOU COME UP WITH THAT DATE.

BUT I'D LIKE TO KEEP THE OPTION OPEN.

I WOULD NOT LIKE TO SEE THAT ONE MEETING AS THE ONLY PUBLIC OPPORTUNITY FOR THIS, BECAUSE THIS IS THIS IS A VERY, VERY CRITICAL ITEM.

SO I'M JUST THROWING IT OUT FOR YOUR CONSIDERATION, MR. CITY MANAGER. ALL RIGHT.

ALL RIGHT. THANK YOU MAYOR.

YEAH. AND IN OUR DISCUSSIONS, I MEAN, OBVIOUSLY WE'RE WE'RE OUT FRONT ON THIS OF OF TAGGING IT ON TO A REGULAR MEETING.

OBVIOUSLY WE'RE ALL GOING TO BE HERE SCHEDULING WISE.

IT WORKED.

AND TRYING TO TO GET EVERYBODY OBVIOUSLY WE WE'VE GOT TIME TO GET THE PUBLIC NOTIFICATION OUT THAT THAT WE'RE GOING TO HAVE IT ON THAT AGENDA.

AND NOW WHAT THE REMAINDER OF THAT AGENDA LOOKS LIKE, I CAN'T TELL YOU.

AND I WOULD ASSUME I WOULD ASSUME THAT THERE WOULD BE A LARGE TURNOUT FOR THIS PARTICULAR AGENDA ITEM THAT NIGHT.

AND IF THAT IF THAT DRAMATICALLY INCREASES THE LENGTH OF THAT MEETING, SO BE IT.

I MEAN, THAT'S, YOU KNOW, WE WILL BE HERE, YOU KNOW, HOWEVER MANY PEOPLE SIGN UP TO TALK WE WILL HEAR THEM ALL.

AND AFTER, YOU KNOW, AFTER THAT AFTER THAT OF THAT MEETING, THAT, THAT HEARING IF WE FEEL THAT

[03:20:02]

BUT I YOU KNOW, I, I THINK THAT EVERYONE AT THIS POINT CAN AIM FOR THAT 16TH JULY 16TH MEETING AND, AND GET IN THE PROCESS AND WE CAN CONTINUE FORWARD.

SO THAT'S JUST KIND OF WHERE WE WHERE WE ARE AT THIS MOMENT.

OKAY. OKAY. WELL, YOU KNOW, I AGREE WITH YOU, MAYOR.

I WANT TO KEEP IT OPEN, BUT I DON'T WANT TO CLOSE THE OPTION IF WE NEED IT FOR A SINGLE SINGLE ITEM.

SPECIAL PUBLIC HEARING ON THIS TOPIC I WANT.

I'D LIKE TO KEEP THAT OPTION OPEN.

I KNOW WE, YOU KNOW, LIKE, WE HAVE NO IDEA WHAT THE AGENDA IS GOING TO BE FOR THAT THAT MEETING.

AND WE'VE HAD SOME MARATHONS.

IF WE NEED A MARATHON THAT NIGHT, WE CAN HAVE ONE.

BUT I'D LIKE TO KEEP THE OPTION OPEN IF IF WE FEEL AFTER THAT MEETING AND HEARING FROM THAT PUBLIC THAT IF, IF, IF, IF THERE'S A NEED BE, THEN WE KEEP THE OPTION TO MAKE IT A SINGLE ITEM FOR A AN ADDITIONAL PUBLIC HEARING ON THIS PARTICULAR ITEM.

THAT'S THAT'S MY POINT.

VERY GOOD. OKAY. WE CAN DO THAT.

COUNCILMEMBER DUTTON. SO, MATT, QUESTION.

CAN YOU TELL US A LITTLE BIT ABOUT THE AFTERMATH OF WACO IN THEIR 30%? NO KETCHUP? SURE. SO WHAT WACO EXPERIENCED THERE IS I MEAN, WE SHOWED THE SLIDE OF $28, AND SO THEY THEY DID EXPERIENCE AFTER PASSING THAT SOME RETIREES COMING TO COUNCIL MEETINGS.

AND I KNOW TMS IS ALSO RECEIVED SOME QUESTIONS FROM RETIREES ASSOCIATED WITH WACO REGARDING THE FACT THAT IT WAS, YOU KNOW, A SMALL AMOUNT THAT THEY DIDN'T CATCH THEM UP.

SO THAT'S REALLY WHAT IT WAS.

SO THE POINT OF ME ASKING THAT QUESTION WAS SIMPLY, I FEEL LIKE THIS IS SUCH A HUGE, HOT TOPIC, AND IT IS DETRIMENTAL ON ONE ASPECT OR THE OTHER.

AND SO TENSIONS ARE GOING TO BE HIGH.

EMOTIONS ARE GOING TO BE HIGH, RIGHTFULLY SO.

SO I DEFINITELY FEEL LIKE THIS IS SOMETHING THAT DESERVES TO HAVE A SPECIAL MEETING OF ITS OWN, THAT WE CAN DEDICATE THE TIME AND ENERGY THAT IT NEEDS INSTEAD OF A END OF A MEETING WHERE WE CAN'T HAVE THAT OPEN DIALOG WITH PEOPLE. I JUST THINK THAT IT THEY DESERVE TO HAVE A SPECIAL MEETING THAT THAT'S WHAT WE'RE FOCUSED ON.

SO. THANK YOU.

OKAY. WELL, I MEAN, IT WOULDN'T NECESSARILY BE END OF MEETING, I MEAN IT AND AGAIN, WHAT THE WHAT THE REMAINING AGENDA FOR THAT ITEM WOULD LOOK OR THAT MEETING WOULD LOOK LIKE.

I MEAN, SOME OF THAT WE CAN CONTROL A LITTLE BIT.

AS FAR AS AS FAR AS MAKING THE TIME FOR IT.

SO YOU KNOW, AGAIN, I THINK HOLDING IT IN OUR, IN OUR NORMAL PROCESSES IS, IS THE FIRST START.

AND THEN WE JUDGE, YOU KNOW, THEN WE JUDGE BY WHAT THE RESPONSE IS FROM THAT MEETING OR TO THAT MEETING AND FROM THAT MEETING.

AND, YOU KNOW, WE WE CAN CERTAINLY HAVE IF AS A CONCLUSION OF, OF WHATEVER DISCUSSION ON THE 16TH, WHICH WOULD BE A PUBLIC HEARING, GROUPS OR INDIVIDUALS CAN COME SPEAK AND WE CAN INTERACT WITH THEM AT THAT TIME.

IT'S NOT IT'S THIS IS NOT JUST PUBLIC COMMENTS.

THIS IS A PUBLIC HEARING.

THERE CAN BE A DISCUSSION BACK AND FORTH.

SO BUT AGAIN, WE'LL, WE'LL HOLD.

WE ALWAYS HAVE THE OPTION OF SCHEDULING A SEPARATE MEETING IF THERE'S ANY FOLLOW UP THAT NEEDS TO BE DONE FROM THE, FROM THE 16TH.

OKAY. AND COUNCILMEMBER BASS THANK YOU.

YEAH I, I AGREE WITH THE MAYOR'S COMMENTS.

AND ALSO BJ'S COMMENTS ABOUT, YOU KNOW, LEAVING IT OPEN TO SCHEDULE AN ADDITIONAL MEETING.

BUT AS FAR AS THE, YOU KNOW, TUESDAY, JULY 16TH, THE YOU KNOW, THE REQUISITE STAFF CITY COUNCIL EVEN THE PUBLIC IS ALREADY AWARE AND SCHEDULED THAT THAT IS A REGULAR SESSION MEETING.

SO IF WE WERE TO TAKE THIS OFF OF THAT AGENDA AND PUT IT SOMEWHERE ELSE, ONE OF THOSE THREE GROUPS IS NOT NECESSARILY GOING TO BE AVAILABLE.

SO, YOU KNOW, I DEFINITELY AM FOR LEAVING IT ON THE JULY 16TH AGENDA.

AND YOU KNOW, OF COURSE, LEAVING THE WINDOW OPEN FOR A FOR AN ADDITIONAL MEETING IF NECESSARY.

THANK YOU. OKAY. ALL RIGHT.

[03:25:02]

IS THERE ANY ADDITIONAL BEFORE WE MOVE FORWARD WITH THOSE? CAN I MAKE JUST ONE ONE COMMENT? SINCE IT WAS BROUGHT UP OF A OF AT LEAST COUNCILWOMAN MAYBE LOOKING AT A TAX RATE INCREASE FOR NOVEMBER.

I MENTIONED EARLIER THAT THAT WOULD PUSH THE THE TIME FRAME UP ON WHEN WE HAVE TO SHOW THE, THE BUDGET.

WERE YOU MEANING THE NEXT YEAR? I'M SORRY IF THERE'S A TAX RATE IMPLICATION THIS YEAR.

WE'LL HAVE TO GET THE BUDGET TO YOU BY JUNE 22ND.

JUST KNOW THAT. OKAY? JULY 22ND, JULY 20TH BY 5 P.M..

ALL RIGHT. I THINK WE'VE CLEARED THE QUEUE.

THANK YOU BOTH VERY MUCH.

A LOT OF INFORMATION THAT YOU HAVE COMPILED ON ONE TOPIC.

ALL RIGHT. WE WILL MOVE FORWARD WITH OUR PUBLIC COMMENTS.

[1. Public Comments]

AND OBVIOUSLY THEY ARE ADDRESSING ITEMS ON THE WORK SESSION AGENDA.

AND I'M ASSUMING WE'RE TAKING THEM IN THE ORDER THEY ARE.

WHAT'S THAT? SORRY.

ALL RIGHT. AND TYPICALLY WE ALLOW THREE MINUTES.

I'D LIKE TO GO FIVE MINUTES ON THIS.

I MEAN, OBVIOUSLY, YOU CAN'T COVER THIS ENTIRE TOPIC IN FIVE MINUTES.

BUT OBVIOUSLY THERE ARE GOING TO BE FUTURE DISCUSSIONS AND OPPORTUNITIES.

SO THE SPEAKERS HAVE HAD THE POINT, HAD THE MOMENT THAT WE HAVE ALL HAD TO SEE ALL THE INFORMATION.

OBVIOUSLY, THIS IS GOING TO BE AN ONGOING DISCUSSION.

SO, MADAM SECRETARY, IF YOU COULD CALL OUR FIRST SPEAKER, PLEASE.

OH, SORRY. THERE YOU GO. I HAVE TO TURN THE MIC ON.

OUR FIRST SPEAKER IS BILL CRUZ.

VERY GOOD. GOOD MORNING BILL.

THANK YOU. THANK YOU.

JUST FOR THE RECORD, BILL CRUZ, I AM THE PRESIDENT OF THE GARLAND FIREFIGHTERS ASSOCIATION.

AND I THINK IT'S SAFE TO SAY THAT THE FIREFIGHTERS ASSOCIATION IS TAKING THE LEAD FOR ALL OF CITY EMPLOYEES ON THIS MATTER.

AND, YOU KNOW, WE'VE HEARD A LOT OF FEEDBACK FROM THEM IN DISCUSSION WITH US.

WE'RE WORKING CLOSELY WITH THE GPA, THE POLICE OFFICERS ASSOCIATION, AND COUNCILWOMAN, IF I MIGHT.

JUST ONE LITTLE CORRECTION WHEN YOU ASKED THE QUESTION ABOUT EMPLOYEE CONTRIBUTION.

WHILE IT IS A 2 TO 1, THE CITY BENEFITS FROM THE PERFORMANCE OF THE FUND.

SO THEY ONLY THEY'RE ONLY CONTRIBUTING NOW A LITTLE OVER 11%.

WE ARE SET AT 7%.

SO IT'S NOT JUST HALF OF WHAT THE CITY'S DONE.

SO OUR NUMBER IS ACTUALLY HIGHER THAN THAN THAN WHAT THAT NUMBER CALCULATES OUT TO BE.

SO, SO SO YOU KNOW, WE'RE SET AT 7%.

WE'RE ALSO, YOU KNOW, LOCKED IN AT 5% GAINS.

SO NO MATTER HOW WELL THAT FUND DOES, YOU KNOW, WE ONLY GET 5% EACH YEAR IN THAT.

BUT WE ARE GUARANTEED AT THAT.

SO WE'RE, YOU KNOW, WE'RE THANKFUL FOR THAT BECAUSE WE HAVE SEEN OTHER PENSION FUNDS THAT HAVE SUFFERED WHEN THEY HAVEN'T INVESTED WISELY.

BUT I'LL GET TO MY COMMENTS.

THIS, OF COURSE, IS A VERY IMPORTANT SUBJECT NOT ONLY TO US AS CURRENT EMPLOYERS OR EMPLOYEES, BUT ALSO TO OUR RETIREES.

AND AS WE LOOK FORWARD TO THE FUTURE, OF THE CITY OF GARLAND IS IMPORTANT TO THE NOT ONLY BEING ABLE TO HIRE FUTURE EMPLOYEES, BUT THE QUALITY OF THOSE EMPLOYEES.

WE SAW THE NUMBERS IN THE IN THE THE SURVEY.

THE LEVEL OF SATISFACTION.

AND I COULD TELL YOU WE WOULDN'T HAVE 76% SATISFACTION WITH THE FIRE FOR THE FIRE DEPARTMENT IF IT WASN'T FOR THE QUALITY OF EMPLOYEE THAT WE WERE ABLE TO ATTRACT AND HIRE AND BE AS SELECTIVE AS WE ARE WHEN WE DO HIRE THEM.

AND WHILE WE STILL HAVE 400 PEOPLE SHOWING UP FOR A TEST, WHEN I TOOK THE TEST A FEW YEARS AGO THAT NUMBER WAS UPWARDS OF 900.

AND AT THAT TIME, WHEN WE HIRED THE NINE PEOPLE THAT WERE IN MY CLASS, THOSE CAME OUT OF THE TOP 20 FROM THAT LIST, WE'RE NOW HAVING TO DIP DOWN TO 200, ALMOST 300, IN THOSE LISTS TO GET THE QUALITY OF PEOPLE THAT WE WANT TO PUT ON THE STREETS TO SERVE THE CITIZENS OF GARLAND.

AND I APPRECIATE COUNCILWOMAN LUCHT, YOU KNOW, LET'S TAKE THIS TO THE VOTERS.

AND LET'S DO THIS AT A 70% WITH NO CATCH UP.

WELL, I WOULD LOVE TO SEE THE CATCH UP FOR OUR RETIREES, ESPECIALLY AFTER TALKING TO SOMEBODY WHO RETIRED IN 1999 AND HEARING HIS STRUGGLES THAT HE'S HAVING BECAUSE HE HASN'T HAD THOSE HAD THOSE INCREASES SINCE 2009.

BUT WE HAVE TO BE REALISTIC.

BUT LET'S TAKE IT TO THE VOTERS AND LET THE VOTERS DECIDE WHAT LEVEL OF SERVICE THEY WANT, WHAT LEVEL OF EMPLOYEE, AND NOT JUST FIRE, BUT POLICE, PUBLIC SERVICE, YOU KNOW, THE

[03:30:09]

ALL OF THAT'S GOING TO COME INTO PLAY, AND WE ARE SEEING THAT YOU KNOW, WE ARE STARTING TO SEE NOT ONLY PEOPLE GO TO OTHER CITIES, BUT THEY'RE LEAVING THE PUBLIC SECTOR IN GENERAL. LABOR STATISTICS SAY THAT THAT WE'RE SEEING A REDUCTION OF 5% OF PEOPLE WILLING TO TAKE LOCAL GOVERNMENT JOBS, YOU KNOW, AND SOME OF THAT IS BECAUSE OF DISTRUST FOR THE GOVERNMENT, BUT ALSO BECAUSE OF THE DIFFERENCE IN THE BENEFITS THAT THE PUBLIC SECTOR IS ABLE TO OFFER, AS OPPOSED TO THE PUBLIC SECTOR. WHEREAS WE IN THE FIRE DEPARTMENT ATTRACT NOT JUST BASED ON BENEFITS, BUT BECAUSE OF THE NATURE OF OUR JOB, BUT ALSO HAVE TO KEEP IN MIND THAT THIS JOB TEARS OUR FOLKS UP BOTH PHYSICALLY AND MENTALLY.

AND WE ARE SEEING PEOPLE STAY ON THE JOB LONGER BECAUSE OF THE WHAT THE FINANCIAL OUTLOOK IS WHEN THEY RETIRE.

RIGHT NOW, THEY'RE LOCKED.

AND SO WE'RE TEARING THEIR BODIES UP EVEN MORE, AFFECTING THE PAYOUTS WHEN IT COMES TO HEALTH INSURANCE.

WE'RE AFFECTING THEM STRONGER MENTALLY.

AND MY GOAL IS I TOLD MY PEOPLE IS, YOU KNOW, WE THERE ARE A LOT OF THINGS THAT WE HAVE OUR PREDECESSORS AND OUR ASSOCIATION HAVE DONE FOR US.

MY GOAL AND MY FOCUS IS THAT PEOPLE ARE ABLE TO RETIRE ON THEIR TERMS, ON THEIR TIMELINE AND DO SO HEALTHY, AND THIS COLA WOULD WILL HELP IN THAT, THAT PURSUIT.

SO I WOULD ASK THAT THAT, YOU KNOW, WE LOOK CERTAINLY AT, YOU KNOW, THE PENSION OBLIGATION BONDS.

BUT THERE ARE SOME QUESTION THERE.

LET'S TAKE IT TO THE CITIZENS, LET THEM DECIDE AS TO.

TO WHAT THEY WANT TO WHAT BENEFITS THEY WANT TO EXTEND THOSE THAT SERVE THEM THROUGH THE COURSE OF THEIR CAREER.

SO THANK YOU.

AND I'M HAPPY TO ANSWER ANY, ANY QUESTIONS THAT YOU MAY HAVE AND I WILL.

I DIDN'T SAY THAT WE DID DO A SURVEY OF OUR MEMBERSHIP WHICH WE HAD MORE THAN 80% OF OUR MEMBERSHIP RESPOND, AND 80% OF THEM SAID THAT THIS IS THEIR NUMBER ONE PRIORITY.

IS THE REINSTATEMENT OF COLA.

SO OKAY, BILL, I JUST WANT YOU TO KNOW YOU CONCLUDED YOUR COMMENTS EXACTLY AT FIVE MINUTES.

THAT IS IMPRESSIVE.

YOUR QUALITY OF EMPLOYEE THAT YOU GET.

YOUR PREDECESSOR, YOUR PREDECESSOR WOULD HAVE JUST GOTTEN THROUGH HIS INTRODUCTION AT FIVE MINUTES.

BUT THANK YOU.

SO I JUST WANT TO BE CLEAR.

SO THE FIRE ASSOCIATION YOU SAY IT IS, IS IS ESSENTIALLY UMBRELLA OVER, OBVIOUSLY FIRE DEPARTMENT.

BUT YOU YOU'VE ALSO BEEN IN CONTACT WITH THE POLICE ASSOCIATION, BUT ALSO OUR GENERAL EMPLOYEES AS WELL.

CORRECT. OKAY.

AND THE, THE OPINION OF THAT, OF, OF THAT INTERACTION YOU'VE HAD IS YOUR PREFERENCE IS TO TAKE IT TO A VOTER INITIATIVE.

IN NOVEMBER OF 25.

SORRY. I WAS LIKE, WHAT YEAR IS IT NOW? IS THAT AM I CORRECT THERE? I CANNOT SPEAK FOR EVERYBODY THERE.

OKAY. BUT JUST LOOKING AT THE OPTIONS THAT ARE THERE, THAT IS THE ONE THAT MAKES SENSE.

OKAY. WHAT WE DO HERE IS THAT THEY WANT A 70% COLA, RIGHT? AND WITHOUT THE CATCH UP, YOU KNOW, EVEN EVEN THE RETIREES ARE SAYING IF WE CAN GET THE 70% WITHOUT THE CATCH UP, THAT'S WHAT WE WOULD LIKE TO HAVE, EVEN THOUGH THEY AREN'T GOING TO BENEFIT AS MUCH FROM THAT.

RIGHT? THEY KNOW WHAT THAT'S GOING.

IT'S GOING TO BENEFIT THEM.

BUT THEY ALSO KNOW WHAT THAT'S GOING TO DO FOR CURRENT EMPLOYEES AND FUTURE EMPLOYEES.

BUT THEY ALSO UNDERSTAND THE THE RISK OF THAT DECISION AS WELL.

I MEAN, THERE'S, YOU KNOW, WE WILL WORK TO MAKE SURE THAT EVERYBODY UNDERSTANDS THAT.

I WAS GOING TO SAY BECAUSE THAT'S, THAT'S A I APPRECIATE, YOU KNOW, GOING GOING FOR THE THE HIGHEST RUNG, IF YOU WILL.

BUT THERE'S, THERE'S A LOT OF UNCERTAINTY IN THE VOTING PUBLIC, SHALL WE SAY, AND KNOWING IT COULD BE ALL OR THAT THAT PUTS YOU IN SORT OF AN ALL OR NOTHING CATEGORY IN THAT I JUST WANT TO MAKE SURE THAT THAT, THAT THEY UNDERSTAND THAT.

YEAH, WE WILL MAKE SURE THAT PEOPLE DO UNDERSTAND THAT.

BUT THAT ALSO PUTS THE ONUS ON US TO GET OUT THERE AND CERTAINLY TALK TO THEM, CERTAINLY, SO THAT THEY I DON'T KNOW THAT THE PUBLIC COMPLETELY UNDERSTANDS WHAT WE'RE TALKING ABOUT THERE, AND IT'S UP TO US.

I THINK WE'RE ALL JUST BEGINNING TO TRY TO UNDERSTAND WHAT WE'RE WHAT WHAT THIS YOU KNOW, THIS HAS BEEN OBVIOUSLY THIS HAS BEEN A SITUATION SINCE 2009 THAT PREDATES EVERYBODY SITTING HERE.

BUT IT'S BEEN AN ONGOING DISCUSSION POINT THROUGHOUT THE YEARS.

AND, AND REALLY SITTING DOWN RIGHT NOW AND LOOKING AT THERE'S, THERE IS A LOT OF MOVING PARTS HERE.

[03:35:02]

AND SO I THINK WE'RE ALL I THINK WE'RE ALL KIND OF COMING TO GRIPS WITH, WITH THAT ON A, ON A REAL BASIS OF, OF, OF TAKING ACTION. SO THANK YOU.

DO WE HAVE ANY QUESTIONS FOR THE SPEAKER? THANK YOU, BILL, AND WE'LL LOOK FORWARD TO HEARING FROM YOU ON THE 16TH.

AND I BELIEVE WE HAVE ONE MORE SPEAKER.

KELLY MILLER. GOOD AFTERNOON.

WE ARE 16 MINUTES INTO THE AFTERNOON.

YES. MR. MAYOR, COUNCIL CITY MANAGER, THANK YOU FOR GIVING ME THE OPPORTUNITY TO SPEAK.

I'D LIKE TO. I'D LIKE TO POINT OUT THAT HOW WELL DONE A JOB MATT DID ON A VERY DIFFICULT TOPIC, WITH A TREMENDOUS AMOUNT OF MOVING PARTS.

IT WAS VERY WELL DONE.

I CONCUR WITH EVERYTHING THAT MY RESEARCH HAS SHOWN AS TO WHAT HE WHAT HE STATED.

I'D ALSO LIKE TO RECOGNIZE COUNCILMAN MOORE UNDERSTANDING THAT THE CONTEXT OF THOSE BENEFITS, WHILE IT MAY SEEM PALTRY TO BEGIN WITH, BY THE TIME I REACH A RETIREMENT AGE WHERE I'M NO LONGER TO GO OUT AND GET ADDITIONAL WORK, THAT IS A SIGNIFICANT AMOUNT OF MONEY.

IT PAYS FOR THINGS THAT OTHERWISE WOULD ENTIRELY BE ABSENT WITH NO COLA.

AND I APPRECIATE YOUR RECOGNITION OF THAT.

COUNCILWOMAN. BASH YOU MENTIONED A NUMBER OF GOALS THAT ARE ELEMENTS OF THE EMPLOYEE ATTRACTION, THE RETENTION.

WHICH ONE DO WE WANT? THEY'RE NOT MUTUALLY EXCLUSIVE, AND I DON'T KNOW WHICH ONE YOU MIGHT REMOVE THAT MIGHT YOU MIGHT BE ABLE TO SAY THERE IS A DATA ELEMENT THAT YOU COULD IDENTIFY AS THE PRECIPITATING FACTOR FOR AN OCCURRENCE.

BUT WHAT IT DOES SAY IS AMONG OUR PEER CITIES AND GROUPS IN THE LABOR FORCE, WE HAVE TO DO SOMETHING TO TO GET THERE TO STAND OUT.

I THINK BEING A CITY OF GARLAND EMPLOYEE, IS THAT WHAT MAKES IT STAND OUT? I THINK THIS IS AN ADDITIONAL BENEFIT OF THAT, AND IT'S SOMETHING THAT WE ONCE HAD THAT WENT AWAY.

COUNCIL. LADY DUTTON, YOUR RECOGNITION ABOUT A SPECIFIC GROUP, KIND OF A UNIQUE GROUP OF FIREFIGHTERS.

NOBODY'S HIRING 50 YEAR OLD FIREFIGHTERS, AND THE ONES THAT ARE 50 YEARS OLD AND WANT TO GO IN AND START ROOKIE SCHOOL AGAIN.

I THINK THEY NEED A BETTER PSYCH EVAL.

SOMETHING'S AMISS THERE.

COUNCILMAN. WILSON.

WILLIAMS. YOU MENTIONED CHALLENGES THAT MIGHT COME FORTH IN THE FUTURE.

AND MATT WON'T LOAN ME HIS CRYSTAL BALL SO I CAN'T SEE HIM.

BUT YOU AND I HAVE BEEN HERE A LONG ENOUGH TO SPEAK OF THE THINGS THAT WE'VE ENDURED, THE CHALLENGES WE FACE FROM 500 YEAR FLOODS, FROM MULTIPLE TORNADOES.

H1N1 EBOLA.

THERE HAVE BEEN CRISES THAT HAVE OCCURRED IN ECONOMICALLY AS WELL, THE GLOBAL CRISIS OF 2008.

BUT WE'VE HAD THESE CHALLENGES.

BUT ONE THING I WILL SAY ABOUT THIS CITY, IT'S COUNCIL.

IT'S PEOPLE THAT WORK HERE IS THE RESILIENCY TO OVERCOME.

THE RESILIENCY TO PUSH THROUGH ALL OF THOSE OBSTACLES AND DO THE THINGS THAT IT SAYS IS OUR NUMBER ONE PRIORITY.

WHAT WE'RE HERE TO ASK IS THAT AT THIS UNIQUE JUNCTURE PROVIDED BY LEGISLATION, THAT THE EMPLOYEE BECOME YOUR NUMBER ONE PRIORITY.

WE UNDERSTAND THAT THE MASTER PLANS THAT MISS STEDMAN TALKED ABOUT, THAT EACH DEPARTMENT IS PROPOSING.

THE FIRE HAS ONE OF THOSE PLANS, BUT ITS BILL STATED, OUR MEMBERSHIP SAID BY A VOTE OF 80%.

THAT WAS ONE OF THE OPTIONS THEY COULD HAVE PICKED.

INSTITUTE OUR MASTER PLAN.

IT'S NOT NUMBER ONE BY 80%.

GET COLAS. NUMBER ONE, WE'RE WILLING TO WORK HARDER, LONGER TO GET THIS BENEFIT THAT WILL SEE US THROUGH TO THE END OF OUR CAREERS AND TO THE END OF OUR LIFETIMES.

QUITE ESSENTIALLY, I CAME HERE.

I HAVE SOME LEGACY WITH THIS CITY.

I WAS BORN HERE.

MY FATHER BECAME A FIREFIGHTER HERE IN 1957.

HE WORKED UNTIL HE WAS 9 TO 1991.

I HEARD HIS STORIES OF THIS CITY.

I HEARD OF THE RESILIENCY THAT THEY HAD THEN, HIS LOVE OF THIS COMMUNITY AND WHAT HE DEDICATED TO IT.

HE LOST HIS COLA IN HIS RETIREMENT.

AND IF NOT FOR A PATRIOT ACT, FOR HIS SERVICE IN THE KOREAN WAR.

I DO NOT KNOW HOW WE WOULD HAVE CARED FOR HIM.

IT WOULD HAVE BEEN IMPOSSIBLE.

BUT HAVING SAID THAT, I CHOSE GARLAND FOR A REASON, AND I CHOSE GARLAND FOR WHAT MY FATHER PASSED ON TO ME AS A LEGACY OF WHAT THIS CITY IS AND WHAT IT DOES.

THERE IS A MANTRA THAT EXISTED ACROSS EMPLOYEES DO MORE WITH LESS.

I THINK WITHOUT A DOUBT, ACROSS THIS ENTIRE METROPLEX, YOU'RE GOING TO SEE EVERY CITY OF GARLAND EMPLOYEE.

THE AMOUNT OF PRODUCTION YOU GET PER PERSON IS BAR NONE BETTER THAN ANY OTHER CITY.

YOU'LL SEE WE HAVE SOME COMPARATIVES IN THE FIRE SERVICE THAT I CAN RELATE REAL QUICKLY.

IRVING IS ABOUT THE SAME CALL VOLUME OF FIRE SERVICE.

[03:40:03]

THEY HAVE ROUGHLY ROUGHLY THE SAME DEMOGRAPHIC.

WE SAW THE REVENUE THING.

WE KNOW WHERE WE'RE DIFFERENT.

IRVING PUTS 81 FIREFIGHTERS A DAY TO RUN THE SAME CALL VOLUME WE'RE RUNNING.

WE RUN 62 PLANO, WHICH RUNS JUST MARGINALLY MORE THAN US ON CALL VOLUME.

THEY RUN 100 FIREFIGHTERS A DAY.

BUT I'VE WITNESSED THIS AMONG EVERY DEPARTMENT, AMONG OUR STREETS, DEPARTMENTS, PARKS DEPARTMENTS, OUR POLICE DEPARTMENT.

THE AMOUNT OF EFFORT THAT YOU GET OUT OF EVERY SINGLE EMPLOYEE EVERY DAY FOR WHAT WE'RE ABLE TO AFFORD.

SO I CAN'T SAY WITH ANY MORE GRATITUDE THAN SAY THANK YOU FOR THE CONSIDERATION.

THANK YOU FOR THE HEARING, FOR THE LISTENING.

I APPRECIATE WHAT MATT HAS DONE FOR US AND TO PUT THIS FORTH TO YOU, AND I LOOK FORWARD TO FURTHER DISCUSSIONS OF ANYTHING WE CAN RELATE TO, HOW WE MIGHT WORK COLLABORATIVELY, AND WORK WITH OUR EMPLOYEE GROUPS TO HELP SEE SUCCESS IN THIS.

THANK YOU. VERY GOOD.

THANK YOU. ANY QUESTIONS FOR THE SPEAKER? COUNCIL MEMBER WILLIAMS. I DON'T HAVE A QUESTION, BUT BILL ONE FOR US.

I HARDLY RECOGNIZE YOU OUT OF UNIFORM.

YES, SIR. OKAY.

IT'S GOOD TO SEE YOU AGAIN.

YES, SIR. I THINK THE MAYOR LAST POINT WITH BILL WAS, HOWEVER.

THIS GOES MESSAGING IS CERTAINLY IMPORTANT.

SO YOUR YOUR ANY THOUGHTS BILL.

WE'VE HAD WE'VE HEARD SUGGESTIONS BUT BILL MADE THE COMMITMENT AS FAR AS IF THIS GOES TO THE VOTERS, THE MESSAGING INFORMATION IS GOING TO BE CRITICAL. AND YOU HAVE ANY THOUGHTS ON ON THAT ASPECT? WE'VE TALKED A LOT AND I AGREE WITH EVERYTHING YOU SAID ABOUT THE CITY WORKFORCE, ALL OF THAT.

OKAY. BUT BUT ONCE THIS ONCE WE LAND THIS PLANE ON WHICHEVER ONE RUNWAY OKAY, OKAY.

MESSAGING IS GOING TO BE KEY.

SO CAN YOU TALK A LITTLE BIT ABOUT ABOUT YOUR THOUGHTS ABOUT GOING TALKING TO A CITIZEN, TALKING TO THE TALKING TO THE CITIZENS ABOUT THIS BILL? ANY THOUGHTS? I DON'T MEAN TO PUT YOU ON THE SPOT, BUT DO YOU HAVE ANY THOUGHTS OF BILL JUST TALKED A LITTLE BIT ABOUT IT.

DO YOU HAVE ANY THOUGHTS ON ON THAT NOT TO GET AHEAD OF YOU OR PUT YOU ON THE SPOT? IF YOU DON'T WANT TO ANSWER IT, DON'T.

BUT I'D BE INTERESTED.

KNOWING KNOWING YOUR HISTORY, KNOWING YOU, I'D BE INTERESTED.

IF YOU HAVE ANY THOUGHTS TO SHARE WITH THIS COUNCIL ALONG THAT LINE.

I DON'T HAVE ANYTHING SPECIFIC.

I WILL SAY THAT I THINK IT'S SOMETHING THAT EVERY INDIVIDUAL GRASP ABOUT WHAT A COLA MEANS.

EVERYONE THAT HAS SOCIAL SECURITY KNOWS WHAT THAT MEANS ON THEIR SOCIAL SECURITY CHECK.

AND WHAT WOULD YOU DO WITHOUT IT? I RECENTLY HAVE BEEN PROCESSING THAT FOR MY MOTHER.

SHE MAKES $839 A MONTH.

THAT'S BECAUSE SHE HAS HAD COLA SINCE SHE RETIRED.

HAD SHE NOT HAD COLA, I DON'T I DON'T KNOW WHAT WE'RE GOING TO DO NOW.

BUT THE OTHER RELATIONAL POINT I CAN SAY ABOUT MESSING IS WHY I THINK THEY UNDERSTAND IS BACK.

IF YOU REMEMBER LAST YEAR'S NOVEMBER ELECTION, THE TEACHER RETIREMENT SYSTEM HAD A COLA INITIATIVE.

THAT COLA INITIATIVE PASSED.

IT PASSED BY 83%.

THAT WAS A STATE ELECTION.

I THINK THERE'S NO ONE IS IMMUNE TO OR UNAFFECTED BY WHAT THE COST OF LIFE IS IN RETIREMENT.

SO WHAT THOSE SPECIFIC MESSAGES MIGHT BE, I DON'T KNOW.

BUT I APPRECIATE YOUR POINT.

AND I THINK IT IS SOMETHING WE NEED TO CRAFT VERY WELL AND VERY DELIBERATELY.

THANK YOU. THANK YOU MAYOR.

VERY GOOD. ANY ADDITIONAL QUESTIONS? I SEE NONE. THANK YOU.

THANK YOU FOR YOUR TIME. ALL RIGHT.

WE ARE WE ARE AT A STOPPING POINT ON THIS TOPIC.

OBVIOUSLY, WE HAVE MORE TO GO.

WE ARE GOING TO TAKE A RECESS FOR LUNCH.

LET'S HAVE EVERYBODY BACK HERE AT 1:00, PLEASE.

AND WE ARE IN RECESS.

WELL. GOOD AFTERNOON.

WE ARE RETURNING FROM RECESS.

WE ARE AT A SPECIAL MEETING WORK SESSION FOR THE GARLAND CITY COUNCIL ON JUNE 29TH, 2024.

[03:45:03]

[7. Presentations on Long-Term Funding Initiatives (Part 2 of 2)]

WE APPRECIATE THE OPPORTUNITY TO DISCUSS OUR RECENT FACILITY CONDITION ASSESSMENT STUDY.

WE WILL START WITH ME OPENING UP, AND THEN BILL WILL SPEAK TO THE TO THE MEAT OF THE ACTUAL STUDY THAT THAT TOOK PLACE.

AND THEN WE'LL DISCUSS THE POTENTIAL FUNDING THAT WE'RE LOOKING TO COMPLETE THE, THE STUDY.

BUT JUST AS A BACKGROUND BACK IN SEPTEMBER OF 2023, WE BROUGHT THIS TO COUNCIL AS A WORK SESSION ITEM TO DISCUSS WHAT THE FACILITY CONDITION ASSESSMENT WAS.

AND WE'LL CONTINUE TO GO OVER THAT.

BUT IT WAS FUNDED BY COUNCIL, JUST A LITTLE OVER 350,000 AS A MASTER PLAN FOR US TO MAINTAIN BUILDINGS.

IT WAS A PRETTY EXTENSIVE LOOK OF ALL OF OUR FACILITY FACILITIES, INCLUDING JUST OVER 2.5 MILLION SQUARE FEET OF BUILDINGS.

SO EVERY BUILDING HAD CONTRACTORS ON TOP OF THEM, CRAWLING THROUGH THEM.

THEY PUT EYES ON EVERYTHING THAT WE HAVE.

SO THERE ARE REALLY TWO GOALS FROM THE FACILITY ASSESSMENT STUDY.

THE FIRST WAS FOR US TO TAKE A PROACTIVE APPROACH IN MAINTAINING THE BUILDINGS.

AND I THINK WHAT BILL SAW IS HE STARTED WITH THE CITY IS WE WOULD WE WOULD WAIT FOR SOMETHING TO BREAK AND WE WOULD GO AND FIX IT.

AND THAT'S TYPICALLY THE MOST EXPENSIVE TIME TO DO IT.

WHEN YOU'RE CALLING PEOPLE IN THE MIDDLE OF THE NIGHT ON A WEEKEND, WHATEVER IT MAY BE.

BUT NOW WE HAVE A LIFE ASSIGNED TO ALL OF OUR ASSETS IN THE CITY, AND WE CAN TAKE A PROACTIVE APPROACH TO TO MAINTAIN THOSE ASSETS THAT WE HAVE.

WE ALSO WANT TO CONTINUE TO LOOK AT OUR EXISTING BUILDINGS.

WE'VE BEEN FORTUNATE TO BUILD A LOT OF NEW WITHIN THE CITY, BUT WE DON'T WANT TO FORGET WHAT'S OUT THERE THAT'S EXISTING, AND SO WE WANT TO ENSURE THAT THAT'S MAINTAINED.

SO THIS IS THE FIRST FACILITIES STUDY THAT WE'VE CONDUCTED HOLISTICALLY SINCE THE EARLY 90S.

SO IT WAS DEFINITELY TIME FOR US TO TO DO THIS AND GET THIS ON THE RADAR.

AND SO WITH THAT, I'LL TURN IT OVER TO TO BILL.

AND HE CAN TALK TO YOU ABOUT THE STUDY AND WHAT IT ENTAILED.

ALL RIGHT. WE'VE GOT 284 SLIDES TO GO THROUGH EVERY BUILDING TODAY.

NO, NO.

OKAY. ALL RIGHT. AND WE ARE ADJOURNED.

NO. BUT SERIOUSLY THANK YOU FOR ALLOWING US TO PARTNER WITH MCKINSTRY TO DO THE FCA.

THEY WALKED US THROUGH A FOUR PART PROCESS ON ALL OF THE BUILDINGS, AND IT WAS IT WAS A REAL EFFORT FROM THEM.

THEY HAD PEOPLE OUT CRAWLING OVER EVERYTHING AND WHAT THEY REALLY TRIED TO DO IS CREATE A BENCHMARK OF THE CURRENT CONDITIONS.

SO GIVE US A REPORT CARD.

WHERE ARE WE NOW AND THEN GIVING? ONCE THEY'VE GIVEN OR TAKEN THAT ASSESSMENT, THEN THEY'RE ABLE TO GATHER THE DATA AND HELP US DO CAPITAL PLANNING SO THAT WE CAN PLAN FOR THE FUTURE ON WHAT DO WE WANT TO LOOK LIKE MOVING FORWARD, AND HOW DO WE WANT TO PLAN TO SPEND THAT MONEY? THE FIRST STEP IN THE PROCESS THEY WENT OUT AND INTERVIEWED ALL OF THE MAINTENANCE STAFF.

THEY INTERVIEWED SOME STAFF AND BUILDINGS AND AND ADMINISTRATION, REALLY KIND OF TRYING TO FIND OUT WHAT OUR PAIN POINTS WERE, IF THERE WERE ISSUES THAT WERE JUST RECURRENT, THAT WE WERE STRUGGLING TO GET ON TOP OF, AND ALSO KIND OF WHAT OUR PRIORITIES WERE WITH THIS STUDY, BECAUSE THEY CAN KIND OF VARY YOU KNOW, FROM CITY TO CITY.

SO THEY WANTED TO KIND OF GET A FEEL FOR WHAT THE CITY OF GARLAND WAS AFTER.

AND THEY KIND OF SORTED THAT INTO A FEW DIFFERENT DATA TYPES.

AND AFTER THEY COMPLETED ALL THE INTERVIEWS, THEY STARTED THE AUDIT PROCESS.

AND THE AUDIT PROCESS IS REALLY KIND OF A TWO STEP PROCESS.

THE FIRST PART IS THE THE COUNTS AND QUANTITIES AND SERIAL NUMBERS AND MAKES AND MODELS, AND THEY TRY TO ASSIGN A LIFESPAN TO THAT.

SO THEY'LL TRY AND FIGURE OUT FROM THE MAKE AND MODEL AND SERIAL NUMBER WHEN THE EQUIPMENT WAS MANUFACTURED AND THEN BASED ON INDUSTRY STANDARDS, HOW LONG WOULD SOMETHING LAST, LIKE AN AVERAGE HVAC UNIT WOULD LAST 20 YEARS.

SO THEY'LL MAKE NOTE OF ALL THAT THAT DATA AND GATHER THAT ALL UP.

AND THEN THE SECOND PART OF THAT, AT THE SAME TIME, WHILE THEY'RE THERE IS A QUALITATIVE ASSESSMENT.

AND THE QUALITATIVE PART IS MORE OF A JUDGMENT.

THEY'RE LOOKING AT THE CONDITION OF THE EQUIPMENT.

WHAT DOES IT, YOU KNOW, DOES IT LOOK LIKE IT'S BEEN MAINTAINED.

DOES IT LOOK LIKE IT YOU KNOW, MEETS CODE REQUIREMENTS, ALL ALL THE VARIABLES THAT SOMEBODY WITH SOME KNOWLEDGE CAN STAND THERE AND MAKE A JUDGMENT ABOUT.

SO THEY, THEY WENT THROUGH AND COMPILED ALL OF THOSE THINGS FOR THESE VARIOUS ASPECTS OF THE FACILITY, INCLUDING THE ARCHITECTURAL ASSESSMENT.

THEY LOOKED AT STRUCTURE ENVELOPE.

I'M GOING TO MAKE A CAVEAT HERE.

INTERIOR FINISHES TO THE EXTENT THAT ARE THEY, LIKE OVERLY WORN OR THEY'RE HOLES AND CHIPS AND WALLS, THEY DIDN'T JUDGE OUR OUR TASTE ON COLOR COMBINATIONS OR ANYTHING LIKE THAT. THEY THAT WASN'T A SCORING CRITERIA.

BUT YEAH, THEY LOOKED AT PARKING LOTS.

THEY DID ADA, FROM THE STANDPOINT OF OF A HIGH LEVEL ADA, IT WASN'T A THOROUGH LIKE A KIMLEY-HORN WOULD GO OUT AND

[03:50:04]

THEY ALSO INCLUDED IN THAT MECHANICAL ASSESSMENT, AND THE MECHANICAL PIECE, THEY THEY LOOKED AT ALL THE MAJOR COMPONENTS FOR THE MECHANICAL PIECES OF THE BUILDING.

THEY DIDN'T GET INSIDE WALLS AND LOOK AT PIPING OR IN THE CEILING GRID TO LOOK AT DUCTWORK, BUT THEY DID LOOK AT ALL THE AIR HANDLERS, THE BOILERS, THE CHILLERS, ALL THE MAJOR COMPONENTRY OF ALL THE THE BUILDINGS FIRE AND LIFE SAFETY CONVEYANCE.

THEY WENT THROUGH ALL OF THAT VERY THOROUGHLY.

THE NEXT PIECE WAS TO SIT DOWN AND COMPILE ALL THAT.

SO THEY WENT THROUGH AND AND ENTERED ALL OF THAT DATA THAT THEY FOUND THAT FROM THE QUALITATIVE AND QUANTITATIVE.

AND THEN THEY STARTED ASSIGNING GENERAL REPAIR COSTS TO THE ITEMS THAT WOULD NEED THEM AND KIND OF WHEN THE LIFE EXPECTANCY WOULD, WOULD END FOR EACH OF THOSE AREAS.

AND THEN THEY ALSO KIND OF FACTOR IN A SCORE FOR THE STAKEHOLDERS INTERVIEWS, YOU KNOW, THEY IF SOMEBODY SAID THIS SYSTEM HAS PROBLEMS ALL THE TIME AND THEY DON'T CAN'T EVER SEEM TO FIX IT, THEY WOULD GIVE THAT A, A WEIGHTING WITHIN THE SCORING CRITERIA.

AND THEN AS THEY GO THROUGH THAT, THEY KIND OF SEPARATED THE SCORING OUT INTO THESE FOUR AREAS THE ASSET CONDITION, THE ENERGY IMPACT AND THE OCCUPANT IMPACT, AND THEN THE OVERALL COST FOR A REPLACEMENT.

AND THEN THE NICE THING ABOUT GROUPING IT THIS WAY IS THAT IT ALLOWS US TO BE ABLE TO SORT THE DATA DIFFERENTLY.

AND YOU'LL SEE WHAT I'M TALKING ABOUT IN A MINUTE.

BUT WITHIN THE SOFTWARE WE CAN FIGURE OUT WHAT OUR PRIORITIES ARE AND KIND OF DIVIDE IT UP AND FILTER IT OUT IN DIFFERENT WAYS.

BUT GENERALLY, A HIGH SCORE IS BAD.

YOU WANT THE LOWER THE SCORE, THE BETTER THE SHAPE THAT THE BUILDING OR SYSTEM IS IN.

THE HIGHER THE SCORE, THE WORSE IT IS.

SO WITH THAT WE GOT SOFTWARE CALLED REVEAL, WHICH IS BASICALLY A DATABASE OF ALL OF OUR ALL OF THE ITEMS, THE FROM THE DATA THAT THEY COMPILED.

AND WE CAN WITHIN THAT REVEAL SOFTWARE, WE'RE ABLE TO PUT TOGETHER BUILDING REPORTS.

AND THE BUILDING REPORT.

AT A HIGH LEVEL, HAS A ONE PAGE SUMMARY THAT KIND OF GIVES YOU AN OVERALL CONDITIONS, YOU KNOW, OF EQUIPMENT SCORING FOR EACH OF THAT.

AND THEN WE CAN ALSO BREAK IT DOWN, AS YOU SEE ON THE RIGHT, WITH ALL THE SYSTEMS AND THE VARIOUS FEEDBACK FROM THE SYSTEMS. IT'S KIND OF A RED, RED YELLOW GREEN SCENARIO.

REDS. BAD GREENS, GOOD THAT THAT KIND OF THING.

ALSO WITHIN THE SOFTWARE WE'RE ABLE TO PLUG IN HOW MUCH CAPITAL WE WANT TO PUT AT THIS.

THIS IS SUPPOSED TO BE A TEN YEAR PROGRAM.

EVERY YEAR WE CAN ENTER WHAT WE THINK WE WANT TO SPEND THAT YEAR AND BUILD OUT MODELS.

FROM A CAPITAL PLANNING STANDPOINT.

THE GOAL IS, YOU KNOW, WE'RE RED RIGHT NOW AS FAR AS WE'VE GOT A LOT OF BUILDINGS THAT REQUIRE A LOT OF MONEY.

BUT AS YOU ADD MONEY IN THIS, EVENTUALLY YOUR RED TURNS TO GREEN.

AND HOPEFULLY SOMETIME BEFORE YOU REACH YEAR TEN, YOU'VE YOU'RE 100% GREEN AND YOU'VE REPAIRED ALL OF THE DEFICIENT ITEMS. ALL RIGHT. I'LL JUMP IN TO DISCUSS THE THE FINANCIAL ASSETS THAT WE'LL BE SEEKING FROM COUNSEL AS WE MOVE FORWARD.

BUT ONE THING I FAILED TO MENTION AS I OPENED UP THIS ITEM, WE MENTIONED THE SQUARE FOOTAGE THAT WAS BEING STUDIED, THE 2.5 MILLION SQUARE FEET.

AND SO JUST THE COUNCIL IS AWARE THAT INCLUDES ALL OF OUR CITY FACILITIES.

SO THAT'S ANYTHING FROM CITY HALL TO THE POLICE DEPARTMENT TO A RESTROOM FACILITY THAT SITS OUT AT FIREWHEEL GOLF PARK OR AT THE ACTUAL PARK FACILITY.

SO WE LOOKED AT ALL OF OUR CITY FACILITIES TO MAKE SURE THAT WE ARE ADDRESSING THEM WITHIN THE THE FCA.

THERE WAS A A DETERMINATION THAT THERE WAS A NEED FOR JUST A LITTLE OVER $32 MILLION TO MAINTAIN OUR CURRENT ASSETS.

AND SO WITHIN OUR CURRENT CIP, WE'VE GOT EARMARKED $2.5 MILLION A YEAR OVER THE NEXT FIVE YEARS, OR $12.5 MILLION.

SO TO INCREASE THAT OVER THE NEXT FIVE YEARS, WE'RE GOING TO REQUEST AN ADDITIONAL $3 MILLION PER YEAR FOR A TOTAL OF $15 MILLION OVER THE FIVE YEARS.

AND THEN GOING YEAR SIX THROUGH TEN OF WHAT'S WITHIN THE FCA, WE WOULD LIKE TO REQUEST AN ADDITIONAL 2.6 MILLION A YEAR FOLLOWING THAT, FROM YEAR 6 TO 10, FOR AN ADDITIONAL 13.2 MILLION, BRINGING US UP TO A TOTAL OF 40.7 MILLION.

[03:55:04]

SO WE'RE BUILDING IN A CUSHION FOR INFLATION.

THERE WERE ALSO BE UNIQUE ASPECTS TO PROJECTS AS WELL.

SO AN EXAMPLE, IF A ROOF WAS CALLED OUT AT A SPECIFIC BUILDING, IT WAS PUTTING A ROOF BACK AS AS IS.

BUT AS BILL CAN EXPLAIN BETTER, IF WE GET INTO A PROJECT AND WE'RE NEEDING TO REMOVE A ROOF, THE DECKING MAY NEED TO BE REPLACED.

ONCE YOU GET IN AND TEAR IT OUT, THERE MAY BE DRAINAGE ISSUES OR WHATEVER IT MAY BE, AND SO THERE NEEDS TO BE A CUSHION THERE TO TO WORK ON THOSE PROJECTS.

IT'S JUST STRICTLY PUTTING IT BACK AS IS.

BUT WE FEEL THAT THIS PROCESS WILL CONTINUE TO ALLOW US TO MAINTAIN OUR BUILDINGS IN A IN A SAFE AND EFFICIENT MANNER.

AND AS BILL TALKED ABOUT WITHIN THE FCA, WE WILL BE ABLE TO TRACK WHAT IMPROVEMENTS WE'RE MAKING TO BUILDINGS AND WHAT SCORES WE'RE ABLE TO IMPROVE ON OUR BUILDINGS.

AS BILL SAID, ALL OF OUR BUILDINGS RECEIVED A SCORE.

OVERALL, WE'RE WE'RE IN DECENT SHAPE, BUT WE HAD SEVERAL BUILDINGS THAT HAD VERY HIGH SCORES.

THEY SHOWED UP IN THE RED COLORS, AS BILL MENTIONED.

AND SO AS WE PROGRESS AND WE KNOW WHAT OUR FUNDING WILL BE, THOSE WILL BE THE ITEMS THAT WE TARGET FIRST AND THAT WE ENSURE WE WE CORRECT.

BUT BEYOND THE FCA HELPING US TAKE A PROACTIVE STANCE WITH FACILITY MAINTENANCE, SOMETHING THAT'S ALSO HELPING US WITH IS PROJECT PLANNING AS WELL.

SO WITH THE PROJECT MANAGEMENT TEAM AND ALSO DEPARTMENTS, WHEN THEY'RE WANTING TO MAKE MODIFICATIONS TO THEIR BUILDING, THEY'RE WANTING TO REMODEL THINGS OF THAT NATURE.

WE ALSO HAVE THIS STUDY WHERE WE CAN HAVE DECISIONS AND DISCUSSIONS OF, DO WE WANT TO CHANGE CARPET AND PAINT? OR DO WE WANT TO REPLACE PLUMBING THAT'S GOT A POTENTIAL FAILURE COMING UPON US, SO WE CAN MAKE EDUCATED DECISIONS ON WHERE WE NEED TO SPEND OUR CAPITAL AS WE MOVE FORWARD WITH OUR FACILITIES.

BUT WITH THAT MAYOR, I'LL TURN IT OVER TO ANY QUESTIONS THAT WE CAN.

WE CAN ASK. VERY GOOD.

WELL. SO ON.

FIRST OFF, THIS IS A MASSIVE UNDERTAKING OF WHEN YOU REALIZE HOW MANY SEPARATE BUILDINGS AND SPACES THAT THAT THE CITY OWNS.

I MEAN, EACH ONE OF US IS PROBABLY FAMILIAR WITH 5 OR 6 BUILDINGS THAT WE INTERACT WITH OR WHATEVER.

BUT TO KNOW, YOU KNOW, HOW MANY ARE OUT THERE.

SO YOU MENTIONED SOME OF THE BUILDINGS SHOWING UP IN THE RED CATEGORY ARE SOME OF THOSE BUILDINGS.

WHAT WILL THIS TELL US IF SOME OF THOSE BUILDINGS HAVE OUTLIVED THEIR INTENDED LIFE? I MEAN, SOME OF THESE IF THEY'RE IF IF A BUILDING IS REALLY SCORING IN THE, IN THE, IN THE HEAVY RED, IS THIS REALLY A FACILITY THAT WE NEED TO LOOK AT.

STOP FIXING IT AND REPLACE IT.

I MEAN, WILL IT GIVE US THAT SORT OF INFORMATION? YES, MAYOR. THAT'S THAT'S DEFINITELY A GREAT QUESTION.

THAT IS SOMETHING THAT WE CAN MAKE THAT THAT ARGUMENT OR THAT CASE WITH THE CITY MANAGER AND AS WELL AS WITH THE COUNCIL OF IT WILL BE BENEFICIAL FOR US TO TO NOT FIX CERTAIN ITEMS AND TO LOOK AT POTENTIALLY REPLACING BUILDINGS.

DEFINITELY. THAT'S SOMETHING WE'VE LOOKED AT AND WE THINK WE'LL BE ABLE TO DO WITH THIS REPORT.

VERY GOOD. OKAY.

COUNCILMEMBER BASS, THANK YOU.

THANK YOU, PHIL AND BILL FOR THE PRESENTATION.

SO A COUPLE QUESTIONS I HAVE.

ONE IS IS WAS 284.

IS THAT THE NUMBER OF FACILITIES THAT WERE INSPECTED OR.

OKAY, THAT'S.

YEAH, THAT'S A LARGE NUMBER.

WHAT AN UNDERTAKING.

OKAY. AND THEN TWO QUESTIONS THAT ARE RELATED.

SO CURRENTLY, HOW ARE THESE MAINTENANCE CONCERNS AND FACILITIES CONCERNS CURRENTLY, HOW ARE THEY FUNDED? AND IN ADDITION TO HOW IS THIS RELATED TO.

IS ANY OF THIS HOW'S ANY OF THIS RELATED TO ONGOING MAINTENANCE OF FACILITIES? THANK YOU. SO JUST TO START WITH YOUR FIRST QUESTION, WE OF COURSE HAVE INTERNAL STAFF.

WE HAVE HVAC, PLUMBING STAFF ON STAFF THAT HELPS US MAINTAIN OUR BUILDINGS.

HOWEVER, WE HAVE A VERY LEAN STAFF AND SO WE HAVE TO SUPPLEMENT OUR WORK WITH OUTSIDE CONTRACTORS.

WE HAVE BEEN DOING THAT TO A DEGREE.

BUT WHAT WE'LL SEE IN THE OPERATING BUDGET AS A REQUEST TO COUNCIL ON TOP.

AND IT'S NOT THIS IS SIP NUMBERS THAT WE'RE ASKING FOR.

SO SO DEBT RELATED NUMBERS.

AND WITHIN THE OPERATING BUDGET WE'RE ASKING FOR ADDITIONAL CONTRACTOR HELP FOR HVAC MAINTENANCE, PLUMBING MAINTENANCE, THINGS OF THAT NATURE WITHIN THE FCA.

ALL OF OUR ASSETS, WHETHER IT'S A ROOF AN HVAC UNIT, IT'S ASSIGNED A LIFE CYCLE AND WHAT LIFE IS LEFT.

AND THAT LIFE DEPENDS ON US MAINTAINING THAT THAT ASSET CORRECTLY.

AND THIS WILL SUPPLEMENT THAT MAINTENANCE TO ENSURE WE MEET THAT LIFE CYCLE.

OKAY. SO THIS THIS REQUEST IS IN ADDITION TO WHAT WE'RE CURRENTLY FUNDING.

CORRECT. OKAY. YEP.

ALL RIGHT. AND THEN OKAY.

AND SO THIS IS JUST AND THIS IS THERE'S NO MAINTENANCE INVOLVED IN THIS.

THIS IS NOT MAINTENANCE.

THIS IS THIS IS STRICTLY GOING TO BE REPLACEMENT AND REPAIR OF EXISTING ITEMS. NOW AS IT RELATES TO MAINTENANCE.

BILL CAN SPEAK ON THAT A LITTLE BIT BIT MORE, BUT THAT'S GOING TO BE OUT OF OUR OPERATING BUDGET, NOT A DEBT FUNCTION.

AND I WOULD THINK THAT AFTER AFTER TEN YEARS OF THIS, IF WE'RE ALL IN THE GREEN, THEN THAT'S DEFINITELY GOING TO HAVE A POSITIVE EFFECT ON THE MAINTENANCE.

[04:00:05]

OKAY. AWESOME. THANK YOU.

WE'LL GET DONE JUST IN TIME TO START IT OVER AGAIN, RIGHT? YEAH. YEAH. THERE IS NO FINISH LINE, RIGHT? YEAH. THANK YOU. MAYOR. VERY GOOD.

COUNCIL MEMBER HEDRICK.

THANK YOU MAYOR. MY QUESTION IS THIS PROPOSED TENURE TIMELINE YOU HAVE HERE FOR FUNDING? HOW DOES THAT MATCH UP TO THE RESULTS? BECAUSE JUST LOOKING AT THIS ONE INDIVIDUAL BUILDING REPORT THAT WAS PRESENTED, SOME ITEMS SAY NEEDS TO BE ADDRESSED WITHIN THE NEXT 1 TO 2 YEARS, NEEDS TO BE ADDRESSED IN THE NEXT 3 TO 5 YEARS.

DOES OUR FUNDING MATCH UP WITH THE REPORT RECOMMENDS.

SO JUST TO UNDERSTAND THE QUESTION, ARE WE FUNDING BASED ON WHAT IT'S WHAT THE REPORT'S SAYING FOR YEAR ONE.

YEAR TWO. SO SO SO NO, WE'RE WE'RE NOT MATCHING THE REPORT AS IT RELATES TO YEAR ONE THROUGH I BELIEVE THREE HAS THE HIGHEST ASK OF OF REQUESTED MAINTENANCE THAT'S NEEDED OR REPAIRS THAT NEED TO BE MADE.

AND SO WHAT WE'RE DOING, BASED ON WHAT WE CAN HANDLE INTERNALLY WITH OUR STAFF AND BASED ON WHAT CAPACITY WE HAVE, WE'RE LOOKING AT SPREADING THAT OUT.

AND OF COURSE, WHAT WE WOULD MAINTAIN FIRST WOULD BE THE ITEMS WHERE WE'RE MOST CRITICAL.

OKAY. IS THERE ANY ISSUES OF DELAYING THOSE ITEMS THAT NEED TO BE TAKEN CARE OF IMMEDIATELY THAT ARE ONE TO 2 OR 3 YEARS, AS THE REPORT WOULD SAY? AND IF YOU TOOK CARE OF IT NOW, YOU WOULD GET A LESS COST, LESS INFLATION EFFECTS.

YEAH. THERE IS OBVIOUSLY IT'S GOING TO COST LESS TO REPAIR SOMETHING TODAY THAN IT WILL THREE YEARS FROM NOW.

AND THERE'S A LOT OF SYSTEMS THEY DISCOVERED THAT ARE JUST OUTDATED.

THEY'VE THEY'VE LIVED LONGER THAN THEY SHOULD HAVE LIVED.

AND SO, YOU KNOW, IT'S A DEFINITE RISK YOU'RE RISKING THAT THEY BREAK DOWN AT SOME POINT IN TIME IN THE NEAR FUTURE BECAUSE THEY'RE ALREADY BEYOND THEIR, THEIR USEFUL LIFE.

BUT THAT SAID, WE.

SO THE WAY THIS IS BUILT OUT, WHEN THEY HAND THE REPORT OVER THERE, THEY'RE EXPECTING YEAR ONE.

YOU'RE GOING TO YOU'RE GOING TO START WORK.

WE'RE LOOKING AT STARTING YEAR TWO.

SO NOW YOU COMBINE YEAR ONE AND TWO.

AND IT ENDS UP BEING EVEN A TALLER NUMBER TO FOR THE ASK.

BUT IT'S MOSTLY DUE TO ALL THE INITIAL SYSTEMS THAT ARE ALREADY BEYOND USEFUL LIFE.

AND SO WE JUST ARE GOING TO BE PLAYING CATCH UP UNTIL WE CAN GET OVER THAT HUMP.

AND THEN AS, AS THE TIME GOES ON THAT THAT DWINDLES DOWN LESS AND LESS TO WHERE IT'S, YOU KNOW, IT'S, YOU KNOW, A COUPLE MILLION A YEAR VERSUS RIGHT UP FRONT.

IT'S, YOU KNOW, 7 TO 10 MILLION OR SOMETHING.

YOU KNOW, YOU'RE OKAY IF THAT MAKES SENSE.

YEAH. IT DOES. YEAH. THANK YOU.

THANK YOU MAYOR. VERY GOOD.

EXCUSE ME. ANY ADDITIONAL QUESTIONS ON THIS ITEM? I SEE NONE, THANK YOU.

THANK YOU VERY MUCH I APPRECIATE IT.

AND THAT WILL MOVE US TO SEVEN D STREET.

STREET CONDITION ASSESSMENT.

WHICH WAS FIRST.

PRESENTED TO US. I'M JUST.

LET'S JUST.

GO AHEAD. GOOD AFTERNOON, MAYOR AND COUNCIL.

WELL, SIMILAR TO, BELIEVE IT OR NOT, SIMILAR TO FACILITIES.

STREETS ALSO HAS A TENDENCY TO LEAN TOWARDS BEING MORE REACTIVE INSTEAD OF A PROACTIVE ORGANIZATION WHEN IT'S RELATIVE TO OUR STREET MAINTENANCE PROGRAM.

AND I WANT TO GO ON RECORD SAYING THAT THERE'S NOTHING WRONG WITH THIS APPROACH.

HOWEVER, IT DOES BEG THE QUESTION AS TO WHETHER IT'S THE MOST EFFICIENT AND MOST EFFECTIVE WAY OF MANAGING OUR STREET.

OUR STREET MAINTENANCE PROGRAM AS A WHOLE RELATIVE TO THE ENTIRE NETWORK.

SO IN AN EFFORT TO MOVE TOWARDS BEING A MORE REACTIVE, I'M SORRY, IN AN EFFORT TO MOVE TOWARDS BEING A MORE PROACTIVE AND DATA DRIVEN PROGRAM, WE DID EXECUTE A CONTRACT BACK IN MARCH WITH AN OUTSIDE CONSULTANT.

WE BROUGHT THIS CONSULTANT ON TO DO A BASELINE STUDY OF THE OVERALL CONDITION OF OUR STREET PAVEMENT NETWORK.

OH MY GOSH, I'M SO SORRY.

OKAY. THIS PROGRAM ACTUALLY.

THANK YOU.

MY SINCERE APOLOGIES.

WHEN WE BROUGHT THE CONSULTANT ON IN MARCH, IT WAS UNDERSTOOD THAT THIS WAS ACTUALLY A SIX MONTH PROJECT.

SO RECOGNIZING THAT WE ARE ONLY IN MONTH WELL, JUST FINISHED MONTH THREE OF THIS OVERALL PROJECT.

[04:05:04]

IT WILL ONLY COVER THE STREETS, IT WILL NOT COVER ALLEYS AND ALLEYS.

IS A PORTION OR IS A PART OF THIS OVERALL PROGRAM OR PROJECT? AS PART OF THIS, WHEN WHEN THE PRESENTATION WITH THE PRESENTATION TODAY, I WANT TO EMPHASIZE THIS.

THE STREETS ONLY THE NUMBERS THAT YOU WERE YOU WILL SEE TODAY ARE RELATIVE TO STREETS WITH VERY FEW EXCEPTIONS.

WE ANTICIPATE COMING BACK LATER IN THE SUMMER I BELIEVE LATE AUGUST, TO DO AN OVERALL PRESENTATION OF WHAT COMES OUT OF THIS THIS OVERALL PROJECT THAT AT THAT TIME IT WILL INCLUDE STREETS, IT WILL INCLUDE ALLEYS, AND IT WILL INCLUDE SOMETHING CALLED SCENARIOS.

TODAY YOU'LL SEE FOUR OUT OF THE TEN SCENARIOS THAT HAVE BEEN THAT HAVE BEEN CONDUCTED UP TO THIS POINT AND BY SCENARIOS.

IT'S LIKE A WHAT IF IF WE DO THIS, THEN WHAT IS THE RESULTS EITHER ON THE FUNDING SIDE OR ON THE OVERALL OCI FOR PAVEMENT CONDITIONS? SO WITH THAT, I THINK I'M GOING TO TURN IT OVER TO TONY BEFORE I START CHOKING AGAIN AND LET HIM GO THROUGH THE OVERALL PRESENTATION.

GOOD AFTERNOON COUNCIL.

I JUST WANT TO, YOU KNOW, THAT I HAVE A LOT OF BACKGROUND INFORMATION IN THESE SLIDES TODAY.

I'M GOING TO TRY TO GET THROUGH THESE AND KEEP IT HIGH LEVEL, AVOIDING SOME OF THE MINUTIA.

TO GET TO THE RESULTS OF THE PRELIMINARY STUDY THAT WE'VE PERFORMED.

SO I KNOW YOU ALL ARE FAMILIAR WITH THE OCI CONCEPT.

IT IS A NUMERICAL RATING OF THE PATIENT'S CONDITION.

IT IS A SNAPSHOT IN TIME.

THESE ASSESSMENTS FOR THE STREETS SPECIFICALLY WAS STARTED IN MARCH AND THEY CONTINUED THROUGH APRIL.

OKAY. SO THAT IS YOUR SNAPSHOT.

IT IS THE OCI THE THE PAVEMENT SCORE AT THAT TIME.

THAT MEANS THAT THE PAVEMENT IS CONTINUING TO, TO DETERIORATE IN THAT IT HAS NOT HAD A TREATMENT APPLIED TO IT.

RIGHT. SO WITH THESE OCI THE PRIMARY CONSIDERATION IS THE SURFACE DISTRESSES.

WE'RE LOOKING AT THE SURFACE ONLY.

AND SPECIFICALLY WHAT DISTRESSES ARE THERE.

AND THOSE DISTRESSES AND THE EXTENT OF THOSE DISTRESSES ARE RATED AND SCORED ON A SCALE OF 0 TO 100, WITH ZERO REPRESENTING A FAILED CONDITION, AND 100 REPRESENTING AN EXCELLENT CONDITION, WHICH WOULD USUALLY BE A BRAND NEW STREET.

THE STUDY WAS CONDUCTED IN ACCORDANCE WITH STANDARD METHODOLOGIES.

THERE IS A METHODOLOGY DEFINED BY THE AMERICAN SOCIETY OF TESTING AND MATERIALS, AND THIS STUDY WAS CONDUCTED IN ACCORDANCE WITH THAT.

I WANT TO TALK A LITTLE BIT ABOUT THE METHODOLOGIES.

HISTORICALLY, THE STREET DEPARTMENT HAS BEEN PERFORMING, AT LEAST FOR THE LAST 20 YEARS, ITS OWN SCORING.

USING WHAT I'M REFERRING TO AS A LEGACY METHOD.

IT REALLY IS MORE OF A MANUAL PROCESS.

I DO WANT TO EMPHASIZE THAT IT'S NOT NECESSARILY A WRONG PROCESS, IT'S JUST MORE OF A LEGACY PROCESS.

WE'LL KEEP IT AT LEGACY.

OKAY. AND IN THAT LEGACY PROCESS, WHAT IT AMOUNTS TO IS WE HAVE A PAVEMENT INSPECTOR WHO GETS IN A CITY TRUCK, AND HE DRIVES THE CITY STREETS, HE DRIVES THE CITY ALLEYS, AND HE RATES THOSE DISTRESSES AND ASSIGNS AN OCI SCORE.

OKAY, YOU CAN IMAGINE WITH THAT MANUAL METHODOLOGY, EVEN IF I'VE BEEN TRAINED AND THAT INSPECTOR HAS BEEN TRAINED, THERE WILL LIKELY BE SOME VARIABILITY, RIGHT? JUST BECAUSE YOU'RE LOOKING AT ALL THIS PAVEMENT AND YOU MIGHT START OUT RATING THE SAME OR SIMILAR, BUT AS YOU SEE MORE AND MORE PAVEMENT ON A DAY OR IN A WEEK, THAT VARIABILITY IS LIKELY GOING TO INCREASE OVER TIME.

AGAIN, I WANT TO EMPHASIZE THAT IT'S NOT A WRONG METHOD.

IT IS A METHOD.

AND I'LL BE HONEST WITH YOU, THERE ARE LIKELY SOME CITIES IN NORTH TEXAS AND ACROSS THE COUNTRY THAT ARE STILL USING THIS METHODOLOGY, BUT THERE IS A MORE CURRENT WAY TO DO THIS, AND THIS IS WHAT THIS STUDY PURSUED, IS A SEMI-AUTOMATIC METHODOLOGY THAT ACTUALLY USES LASERS AND CAMERAS AND SENSORS THAT ARE ATTACHED TO A VAN, AND THAT VAN DRIVES THE CITY STREETS AND ALLEYS, AND IT COLLECTS THAT SAME DATA, BUT AGAIN IN A SEMI-AUTOMATED PROCESS.

COMPARED TO THE MANUAL METHOD, YOU CAN OBVIOUSLY IMAGINE THAT IT RESULTS IN MORE CONSISTENCY IN THE DATA THAT'S COLLECTED AND THEN MORE OBJECTIVITY AS A RESULT OF THAT.

THE OTHER POINT I WANT TO EMPHASIZE IS JUST FROM A SAFETY STANDPOINT, THE VANS CAN DRIVE AT KIND OF YOUR NORMAL TRAVEL SPEEDS ON A ROADWAY VERSUS WHEN WE DO IT THE MANUAL WAY.

USUALLY EVEN ON, SAY, A MILLER ROAD OR CENTERVILLE ROAD, THAT CITY TRUCK HAS TO DRIVE AT ABOUT TEN MILES AN HOUR.

[04:10:01]

I JUST WANT TO ILLUSTRATE TO YOU SOME TYPICAL DISTRESSES THAT WE SEE THOSE TWO PICTURES TO YOUR LEFT ARE REPRESENTING ALLEY PAVEMENT AND SOME COMMON DISTRESSES.

AND THEN ON THE RIGHT ARE DISTRESSES THAT WE FIND IN CONCRETE AND BELOW.

AS YOU CAN SEE, THERE ARE MANY DIFFERENT TYPES OF DISTRESSES THAT WE ENCOUNTER IN TERMS OF TRYING TO MANAGE PAVEMENT.

SO I WANT TO GIVE YOU SOME BACKGROUND ON HOW WE GOT TO TODAY.

BACK IN SEPTEMBER, THE COUNCIL APPROVED A FUNDING REQUEST FOR $350,000 TO CONDUCT THIS PAYMENT STUDY IN CONJUNCTION WITH THE FY 24 BUDGET.

IN OCTOBER, STAFF MOVED FORWARD WITH ASSESSING POTENTIAL VENDORS TO BE ABLE TO PERFORM THIS STUDY.

BUT IT WAS IMPORTANT FOR US SINCE IT WAS THE FIRST TIME THAT GARLAND HAD PURSUED THIS APPROACH TO ASSESSING PAVEMENT, THAT WE REALLY WANTED TO REALLY UNDERSTAND WHAT VENDORS COULD DO FOR US IN TERMS OF THIS NEXT LEVEL OF PAVEMENT ASSESSMENTS.

AND SO WE ASKED THE VENDORS, WE WE ENLISTED FIVE VENDORS, AND WE ASKED THEM TO DO A PILOT STUDY WHERE THEY DROVE, I WANT TO SAY MAYBE FIVE, 5 TO 8 MILES OF OUR OUR CITY STREETS AND WENT THROUGH THEIR ENTIRE PROCESS AND DELIVERED DATA TO US AND TALKED US THROUGH THE DATA.

AND FROM THERE RIGHT AFTER THE NEW YEAR THAT ANALYSIS OF THOSE VENDORS ENDED.

AND IN FEBRUARY, WE MADE A DECISION ON WHO WE DETERMINED WE THOUGHT WAS BEST QUALIFIED TO TAKE US IN THIS NEW ERA.

AND IN THE SPRING, WE DID MOVE FORWARD.

LATE, LATE WINTER. EARLY SPRING MOVED FORWARD WITH THE CONTRACTING PIECE OF IT AND BROUGHT THIS TO COUNCIL IN EARLY MARCH FOR YOUR APPROVAL OF THAT CONTRACT.

AND WE INITIATED THE PAVEMENT ASSESSMENTS IMMEDIATELY THEREAFTER.

AND THAT BRINGS US TO WHERE WE ARE TODAY, WHERE THE DATA IS, CRYSTAL SAID, IS PRELIMINARY.

WE'VE ONLY ADDRESSED THE STREETS UP TO THIS POINT.

WE ARE WORKING ON THE ALLEYS.

AND SO EVERYTHING YOU'LL SEE TODAY RELATES TO THE STREETS NOT ONLY SCORING BUT ALSO FUNDING.

SO JUST A QUICK NOTE ABOUT THE VENDOR.

IT IS ROADWAY ASSET SERVICES.

THEY HAVE EXPERIENCE WITH MULTIPLE CITIES HERE IN NORTH TEXAS DOING THE SAME TYPE OF WORK.

THEY'VE DONE WORK AS WELL ACROSS THE STATE OF TEXAS AND NATIONALLY FOR THAT MATTER.

SO WE FELT REASONABLY CONFIDENT WITH THEIR ABILITY TO PERFORM THESE SERVICES.

AGAIN, WE ISSUED THE NOTICE TO PROCEED IN EARLY MARCH.

AND IN TERMS OF THE DELIVERABLES, I THINK THIS IS IMPORTANT.

OBVIOUSLY THE CONDITION DATA AND THERE IS A TON OF DATA, AS YOU MAY IMAGINE, WITH THE AMOUNT OF STREETS AND ALLEYS THAT WE HAVE IN OUR NETWORK, THE FUNDING SCENARIOS WHICH RELATES TO THE BUDGET.

AND THOSE ARE WHAT YOU'LL SEE LATER IN THIS PRESENTATION.

THERE ARE FUNDING SCENARIOS FOR THE NEXT FIVE YEARS BECAUSE TYPICALLY USING THIS PROCESS INDUSTRY STANDARD IS TO REPEAT THE PROCESS EVERY 3 TO 5 YEARS.

OKAY. SO THESE GO UP TO FIVE YEARS, WHICH IS THAT MAXIMUM THRESHOLD BEFORE THE IDEA IS TO STUDY NEEDS TO BE REPEATED TO SEE WHERE YOU ARE AT THAT POINT.

ONE OF THE KEY ASPECTS OF THIS STUDY, ONE OF THE KEY DELIVERABLES THAT'S REALLY GOING TO HELP US TO ELEVATE THE WAY WE MANAGE PAVEMENT HERE IN GARLAND, RELATES TO A MULTI YEAR PAVEMENT MANAGEMENT PLAN THAT'S GOING TO GET US 75% THERE IN TERMS OF APPLYING THE BEST TREATMENTS TO ROADWAYS TO MITIGATE THAT DETERIORATION THAT ALL ROADWAYS AND ALLEYS EXPERIENCE.

THE DATA INTEGRATION PIECE OF IT IS BASICALLY ALL THE DATA THEY'VE COLLECTED.

THEY'RE GOING TO BE PUTTING THAT AS WELL INTO OUR GIS SYSTEM, IN ADDITION TO OUR ASSET MANAGEMENT SYSTEM, WHICH IS CALLED CARDIOGRAPH.

AND I'LL TOUCH ON THAT BRIEFLY.

LATER IN THIS PRESENTATION.

ANOTHER THING THEY'RE GOING TO BE DOING FOR US IS PROVIDING OUR STAFF, SELECT STAFF WITH SOME TRAINING ON OUR ABILITY TO BE ABLE TO BUILD THESE SCENARIOS ON OUR OWN.

WE WANT TO BE SELF-SUFFICIENT ON THESE BECAUSE ONCE THEY COMPLETE THEIR STUDY, THERE MAY BE SOME TWEAKS WE WANT TO MAKE.

THERE MAY BE SOME NEW SCENARIOS THAT COME ABOUT HERE IN THE NEXT MONTH, AND WE WANT TO BE EQUIPPED TO BE ABLE TO RUN THOSE ON OUR OWN.

SO THAT TRAINING IS GOING TO BE REALLY, REALLY ESSENTIAL FOR US TO BE SELF-SUFFICIENT.

AGAIN, JUST TO EMPHASIZE THE STUDY IS ONGOING.

WE'RE EXPECTING TO COMPLETE IT AT THE END OF THE SUMMER.

JUST REAL QUICKLY ON THE QUANTITY OF ASSETS THAT WE'RE MANAGING.

TYPICALLY IN OUR BUSINESS, WE WE REFERENCE FROM AN ASSET INVENTORY STANDPOINT AS WELL AS A PERFORMANCE STANDPOINT.

[04:15:02]

AND SO I WANT TO GIVE YOU CONTEXT ON THAT BECAUSE THESE TERMS WILL BE REFERENCED LATER IN THE PRESENTATION.

IF YOU LOOK AT THE EXHIBIT AT THE BOTTOM OF THE SCREEN, LOOKING AT POINT A TO POINT B, I'M ASSUMING THAT IT'S ONE MILE ALONG THE CENTERLINE OF THE ROAD THAT IS CALLED A CENTERLINE MILE.

AND ALL YOU DO TO TO COMPUTE THE LANE MILES IS YOU MULTIPLY THE CENTERLINE MILES TIMES THE NUMBER OF LANES.

SO IN THIS EXAMPLE IT WOULD BE TWO LANE MILES BECAUSE THERE ARE TWO LANES TO TWO LANES SHOWN HERE.

EXCUSE ME. I ALSO WANTED TO IDENTIFY KIND OF OUR LANE MILE DISTRIBUTION.

AS WITH MOST CITIES, YOU WILL FIND THAT THE RESIDENTIAL STREETS COMPRISE THE MAJORITY OF THE STREET NETWORK, AND THAT IS NO EXCEPTION.

HERE IN GARLAND, YOU CAN SEE ALMOST HALF OF THE NETWORK COMPRISES RESIDENTIAL STREETS.

JUST REAL BRIEFLY, THIS IS ANOTHER CHART THAT WE INCLUDED BACK IN NOVEMBER OF LAST YEAR WHEN WE CAME BEFORE YOU ABOUT OUR PAVEMENT AGE.

AND REALLY, THE ONE THING I JUST WANT TO INDICATE TO YOU IS THAT OVER 70% OF OUR STREET AND ALLEY NETWORKS ARE GREATER THAN 30 YEARS OLD.

NOW, THAT DOESN'T MEAN THAT ANY ASSETS THAT ARE 30 YEARS OLD OR MORE ARE ALL FAILING.

WE TYPICALLY REFERENCE A 30 YEAR SERVICE LIFE FOR A CONCRETE PAVEMENT, BUT THAT DOESN'T MEAN THAT THE CONCRETE IS ALWAYS FAILED AT 30 YEARS.

IT CAN GO BEYOND THE 30 YEARS, AND SOMETIMES IT FAILS BEFORE THOSE 30 YEARS.

BUT THAT'S A GENERAL RULE OF THUMB.

JUST SOME QUICK EXAMPLES ABOUT PAVEMENT CONDITION RELATIVE TO OCI RANGES.

THE FIRST THING I WANTED TO MENTION IS THE KIND OF INTUITIVE DESCRIPTION THAT ATTACHES TO THESE OCI RANGES.

AS I TALKED ABOUT THE OCI SCORE BEING FROM FAILED TO EXCELLENT, I WANTED TO INCLUDE SOME PICTURES HERE TO GIVE YOU SOME IDEA OF WHAT WE'RE LOOKING AT WHEN WE'RE EVALUATING PAVEMENT. OBVIOUSLY THE EXCELLENT CONDITION IS CIRCUMSTANCE WHERE IT'S A BRAND NEW PAVEMENT OR RELATIVELY NEW PAVEMENT.

AND THE GOOD CONDITION AND THESE MAY BE A LITTLE HARD TO SEE, BUT THERE IS SOME CRACKING PRETTY GOOD AMOUNT OF CRACKING THERE THAT PROBABLY NEEDS TO BE CRACKED SEALED. BUT OVERALL THAT PAVEMENT IS IS IN PRETTY GOOD CONDITION ASIDE FROM JUST DOING A CRACK SEALING TREATMENT.

WE MOVED DOWN TO THE FAIR PICTURE.

THERE YOU CAN SEE OFF TO THE RIGHT THAT IT LOOKS LIKE THERE HAVE BEEN SOME PANEL REPLACEMENTS.

THE CONCRETE TO THE RIGHT LOOKS A LITTLE NEWER THAN THE CONCRETE TO THE LEFT, AND YOU CAN SEE THE CONCRETE TO THE LEFT.

ALSO HAS BEEN CRACKED, SEALED AND APPEARS TO HAVE SOME WEATHERING.

SO IT'S BEEN THERE SOME TIME, BUT IT'S STILL IN GENERALLY FAIR CONDITION.

THE LAST ONE IS KIND OF TRANSITIONING INTO THAT DARK ZONE, THE POOR CONDITION WHERE YOU SEE SOME ASPHALT PATCHING, YOU CAN SEE CRACKING THAT HASN'T BEEN SEALED. YOU CAN SEE WHERE THERE'S SPALLING AS WELL IN SOME CASES IN THAT CONCRETE.

SO IT'S DEFINITELY DETERIORATING.

AND THEN THE FIELD IS OBVIOUSLY A POINT OF NO RETURN WHERE REALLY THERE'S NO OTHER OPTION BUT TO RECONSTRUCT.

I WANTED TO TOUCH REAL QUICKLY ON THE MAJOR PROJECT CATEGORIES.

THESE FOUR CATEGORIES ARE THE ONES I THINK ARE MOST RECOGNIZABLE BY OUR CUSTOMERS.

BUT THESE ARE NOT THE ONLY TREATMENTS THAT WE APPLY TO ROADWAYS.

THE RESIDENTIAL RECONSTRUCTION OPTION IS OBVIOUSLY PRETTY INTUITIVE.

IT IS ONE THAT WE APPLY TO FAILED STREETS.

WE DO MOST OF OUR RESIDENTIAL RECONSTRUCTION IN-HOUSE.

WE HAVE AN ARRAY OF EQUIPMENT ON HAND TO BE ABLE TO DO THIS WORK, AND CAN CERTAINLY RIVAL ANY CONTRACTOR IN TERMS OF THE TOOLS AND RESOURCES WE HAVE AVAILABLE TO DO IT. I WANTED TO NOTE THAT ON AVERAGE, WE RECONSTRUCT ABOUT TWO A LITTLE OVER TWO CENTERLINE MILES OF STREETS ON AN ANNUAL BASIS.

AND THAT REPRESENTS ABOUT HALF A 0.5% OF ALL THE RESIDENTIAL STREETS IN THE CITY.

SO THAT'S A PRETTY SMALL NUMBER.

AND IF YOU DO THE MATH ON THAT AND WE TALK ABOUT REPLACEMENT CYCLE, THAT'S ON A 200 YEAR REPLACEMENT CYCLE.

SO THAT'S PRETTY COMPELLING.

THE NEXT TREATMENT THAT YOU RESIDENTS TYPICALLY SEE IS ASPHALT OVERLAY.

THIS IS ANOTHER TREATMENT THAT WE DO ALMOST EXCLUSIVELY IN-HOUSE WITH WITH OUR RESOURCES.

WHAT WE DO ON GENERALLY FAIR PAVEMENT THAT'S RATED FAIR AS WE GO IN AND WE'LL APPLY WHAT WE CALL AN ASPHALT MAT.

IT'S USUALLY ABOUT A HALF 1.5IN THICK AND THIS IS NOT THE MOST POPULAR TREATMENT.

WE OFTEN GET QUESTIONS ABOUT THE WHY, BUT I DO WANT TO STATE THAT THIS IS A RECOGNIZABLE TREATMENT.

[04:20:01]

I THINK AN INTERESTING NOTE ABOUT ASPHALT IS THAT IN MY EXPERIENCE WORKING IN THIS BUSINESS, AS LONG AS I HAVE, YOU KNOW, THERE ARE PEOPLE THAT FEEL ASPHALT AS AN INFERIOR PRODUCT.

AND FROM AN OPINION STANDPOINT, IT IS NOT NECESSARILY AN INFERIOR PRODUCT IF YOU DO IT CORRECTLY.

SO I'M GOING TO GO TO THE NEXT SLIDE THAT GIVES SOME MORE INFORMATION ABOUT ASPHALT AND PARTICULARLY THE ASPHALT OVERLAY AS A AS A RECOGNIZABLE TREATMENT.

WE ACTUALLY REACHED OUT TO A NUMBER OF NORTH TEXAS CITIES, TWO OF THEM I WORKED FOR IN THE PAST.

OKAY. SO YOU CAN SEE THE NUMBER OF CITIES THAT ACTUALLY APPLY THIS TREATMENT TO THEIR STREETS.

SOME OF THE BENEFITS ARE THAT YOU CAN DO IT PRETTY QUICKLY, USUALLY FOR 1000 FOOT LONG RESIDENTIAL STREET.

WE CAN WE CAN BE IN AND OUT WITHIN A WEEK.

IT'S COST EFFECTIVE AS WELL.

THE ASPHALT ALONE TO DO 1000 FOOT STREET IS AROUND $30,000, $35,000 TO DO IT AGAIN.

THAT'S JUST THE MATERIAL ALONE DOESN'T INCLUDE THE LABOR COST ASSOCIATED WITH IT.

SO IT'S QUICK, IT'S COST EFFECTIVE, AND IT'S SUSTAINABLE.

OKAY. I WILL NOTE TO YOU AS WELL THAT WE OCCASIONALLY USE THIS TREATMENT AS WHAT WE REFER TO AS A BRIDGING TREATMENT WHEN THERE'S NOTHING ELSE WE CAN DO.

IF YOU THINK ABOUT THAT FAILED CONDITION I SHOWED YOU ON THE PREVIOUS SLIDE, BUT THERE'S PRESSURE OR THERE'S SERIOUS ISSUES WITH THAT PARTICULAR STREET. WE WILL SOMETIMES GO IN AND APPLY THAT ASPHALT OVERLAY.

IT'S NOT A DESIRABLE WAY TO DO IT, BUT SOMETIMES WE DO IT, BUT WE DON'T DO IT AS A STANDARD AND WE CALL IT A BRIDGING TREATMENT BECAUSE THERE JUST ISN'T FUNDING AVAILABLE TO RECONSTRUCT IT. SO IN ORDER TO DO SOMETHING AT $30,000, WE WILL APPLY THAT TREATMENT ALLEY RECONSTRUCTION.

I THINK IT'S ANOTHER PRETTY INTUITIVE ONE THAT'S APPLIED TO FAILED ALLEYS IN THE CITY.

THIS IS DONE EXCLUSIVELY BY CONTRACTORS, AND ON AVERAGE, WE'RE DOING 2.5 CENTERLINE MILES OF ALLEY RECONSTRUCTION ON AN ANNUAL BASIS.

THAT TRANSLATES TO ABOUT 0.8% OF THE TOTAL ALLEY NETWORK.

IF YOU DO THAT REPLACEMENT CYCLE CALCULATION, YOU'RE ON A 130 YEAR REPLACEMENT CYCLE WITH WHAT WE'RE DOING TODAY.

THE LAST MAJOR CATEGORY IS PAVEMENT REHABILITATION.

WE SOMETIMES REFER TO IT AS PAVEMENT REPAIR, AND THAT IS TYPICALLY APPLIED TO STREETS THAT ARE IN GOOD CONDITION SOMETIMES.

AND THAT KIND OF EARLY FAIRE STAGE OF CONDITION WILL GO IN AND DO THAT.

OUR THRESHOLD TYPICALLY IS ABOUT 40%.

IF THE NUMBER OF SELECT PANELS THAT NEED TO BE REPLACED EXCEEDS 40%, IT DOESN'T QUALIFY TYPICALLY, BECAUSE THEN YOU'RE LOOKING AT OKAY, THE COST TO TO DO THESE SELECT PANEL REPLACEMENTS COULD START COMPETING WITH THE COST TO DO A DIFFERENT TREATMENT, SUCH AS RECONSTRUCTING IT OR SOMETHING ELSE.

THIS TREATMENT IS ACTUALLY APPLIED TO ALL OF OUR ASSETS.

I DIDN'T INCLUDE THE ALLEYS ON THERE, BUT SOMETIMES WE ACTUALLY GO IN AND DO SELECT ALLEY PANEL REPAIRS AS WELL.

AND AS FAR AS THE BUDGET, TYPICALLY WE BUDGET ABOUT $10 MILLION FOR THIS PARTICULAR TREATMENT.

SO I WANT TO ROLL ALL OF THIS UP INTO OUR CURRENT YEAR'S WORK PLAN.

WE'RE AT ABOUT $24 MILLION BUDGETED THIS YEAR FOR.

AND AGAIN, THAT DOESN'T INCLUDE SOME OF THOSE OTHER TREATMENTS THAT I DIDN'T TALK ABOUT HERE.

AND ABOUT 84 LANE MILES, WHICH TRANSLATES TO ABOUT 3% OF THE NETWORK.

I JUST WANTED TO BRIEFLY MENTION SOME OF THE CURRENT PROGRAMING CONSIDERATIONS THAT WE WE THINK ABOUT WHEN WE'RE TRYING TO PLAN FOR OUR ANNUAL WORK.

OBVIOUSLY, THE OCI SCORE PAYMENT CONDITION IS THE PRIMARY PIECE OF DATA THAT WE USE FOR MAKING DECISIONS WHEN WE'RE ZEROING IN ON PARTICULAR ASSETS THAT WE'RE PROPOSING TO POTENTIALLY APPLY TREATMENT TO, WE DO LIKE TO GO INTO OUR WORK ORDER SYSTEM AND SEE WHAT WHAT HAVE WE DONE ON IT, WHAT TYPES OF SERVICE REQUESTS HAVE WE HAD ON IT, AND HOW MUCH WE HAVE BEEN SPENDING ON, YOU KNOW, DOING KIND OF THESE AD HOC THINGS TO THE PARTICULAR ASSETS. WE ALSO DO A LOT OF COORDINATION WITH SELECT DEPARTMENTS, OTHER DEPARTMENTS SUCH AS WATER AND SEWER.

THEY'RE AN IMPORTANT PIECE OF THIS.

WE ALSO COORDINATE WITH THE PROJECT MANAGEMENT OFFICE AND THE ENGINEERING OFFICE, JUST TO MAKE SURE THAT WE ARE ALL ON THE SAME PAGE IN TERMS OF WHO'S DOING WHAT AND WHEN. THE OTHER TWO BULLETS, RESOURCE UTILIZATION AND PROJECT COST, BOTH OF THOSE KIND OF RELATE TO COST.

I THINK IT'S PRETTY PRETTY OBVIOUS THERE.

[04:25:01]

OKAY. KIND OF TRYING TO TRANSITION INTO THESE INITIAL RESULTS BASED ON THE DATA THAT'S BEEN COLLECTED SPECIFICALLY FOR STREETS TODAY. OUR STREET NETWORK OCI IS SITTING AT 71.

OKAY. I WANT TO AGAIN EMPHASIZE THAT THIS IS A SNAPSHOT IN TIME.

IT'S A SNAPSHOT IN TIME, IN THE ALLEYS OR NOT INCLUDED IN THIS SCORE.

I MENTIONED EARLIER THAT TYPICALLY THIS WHOLE PROCESS IS REPEATED EVERY 3 TO 5 YEARS.

BUT WE FEEL PRETTY CONFIDENT IN COORDINATING WITH THE VENDOR THAT'S SPECIFIC TO THE STREETS.

THE OCI IS A 71, BUT YOU WILL LIKELY EXPECT THAT WHEN THE ALLEYS GET ADDED TO THIS, THAT THERE WILL BE AN ADJUSTMENT TO TO THIS SCORE.

SO I DID TOUCH ON PAVEMENT DETERIORATION EARLIER IN THIS PRESENTATION.

AND THERE'S KIND OF A RULE OF THUMB.

AGAIN, I TALKED EARLIER ABOUT THE FACT THAT ALL PAVEMENT DOESN'T DETERIORATE AT THE SAME RATE.

BUT THE RULE OF THUMB IS GENERALLY 40%.

YOU EXPERIENCE 40% OF DETERIORATION, OVER 75% OF THE ASSET'S SERVICE LIFE, AND THEN ANOTHER 40% OF THAT DETERIORATION HAPPENS IN THE REMAINING 25% OF THAT ASSET SERVICE LIFE.

SO TO PUT THAT KIND OF INTO CONTEXT, GOING BACK TO THAT 30 YEAR SERVICE LIFE FOR A CONCRETE PAVEMENT.

SO IN THOSE FIRST 22 YEARS, YOU WOULD HAVE 40% OF YOUR DETERIORATION.

AND THEN IN THE NEXT SIX YEARS, WHICH PUTS YOU AT YEAR 28, YOU'LL HAVE THE ADDITIONAL 40% DETERIORATION.

AND I THINK THIS CURVE KIND OF SHOWS THIS.

IF YOU LOOK AT THE DEMARCATION BETWEEN FAIR AND POOR, YOU CAN SEE THAT CURVE DROPS OFF PRETTY SUBSTANTIALLY ONCE THAT PAVEMENT DROPS INTO THE POOR CATEGORY. AND I THINK THOSE PICTURES THAT I SHOWED EARLIER KIND OF MARRY UP WITH WHAT THIS DETERIORATION CURVE IS SHOWING.

THE OTHER THING I ADDED TO THIS DETERIORATION CURVE IS THE TYPICAL TREATMENT PARAMETERS.

THOSE ARE SITTING OFF TO THE RIGHT.

THESE ARE KIND OF GUIDELINES.

IT DOESN'T MEAN WE ALWAYS APPLY THIS PARTICULAR TREATMENT TO THIS PARTICULAR OCR RANGE FOR THIS PARTICULAR CONDITION.

BUT BUT THESE ARE DEFINITELY GUIDELINES HERE.

THE OTHER THING THAT WE WANT TO ADD TO THIS IS DON'T GET CAUGHT UP IN THE NUMBERS.

IF YOU ARE LOOKING AT, SAY, A 71 OR 70, IT'S VERY DIFFICULT TO DETERMINE WHETHER OR NOT IT'S A 69 OR A 70 OR THE DIFFERENCE BETWEEN A 49 AND A 50.

SO IT'S MORE SO THE ACTUAL CONDITION OF THE ROADWAY.

THESE AS TONY SAID, THESE ARE DEFINITELY GUIDELINES.

SO I DON'T WANT US TO GET SO CAUGHT UP ON, YOU KNOW, OH IT'S A 49.

SO IT SHOULD GET THIS TREATMENT.

THAT'S NOT NECESSARILY THE CASE.

IT COULD BE THAT IT'S A 49 IN THE NUMBERS, BUT IT REQUIRES A DIFFERENT TREATMENT THAN SAY ASPHALT OVERLAY PARTIAL RECONSTRUCTION.

SO I WANT TO BE SURE THAT, YOU KNOW, THAT'S THAT'S CLEAR.

THE BASIC TENET HERE, WHEN WE TALK ABOUT DETERIORATION AND PAVEMENT MANAGEMENT IS WE WANT TO KEEP GOOD PAVEMENTS, GOOD FOR AS LONG AS WE CAN KEEP THEM GOOD. THAT IS THE PRINCIPAL TENANT IN THIS PROCESS.

AND SO I WANT TO DISTINGUISH BETWEEN PAVEMENT MAINTENANCE AND PAVEMENT MANAGEMENT.

THESE ARE OFTEN USED INTERCHANGEABLY.

BUT THERE THERE ACTUALLY IS KIND OF A DIFFERENCE.

THERE'S SOME NUANCES BETWEEN THE TWO, AND I'VE TRIED TO OUTLINE WHAT THAT MEANS HERE ON THIS CHART.

IF YOU THINK ABOUT PAVEMENT MAINTENANCE ON ITS OWN, THAT WOULD BE A STREET A HAS CRACKS IN IT AND NEEDS TO BE CRACKED SEALED. IT IS A LOCALIZED STREET THAT NEEDS A PARTICULAR TREATMENT BECAUSE IT'S IN A PARTICULAR OCR RANGE.

SO VERY MUCH SO LOCALIZED.

BUT PAVEMENT MANAGEMENT IS ACTUALLY ZOOMING OUT, OKAY.

AND LOOKING AT THE NETWORK AS A WHOLE.

AND SO WITHOUT READING KIND OF THIS DEFINITION HERE, I THINK THE THE KEY POINTS IN IT WOULD BE THAT IT'S HOLISTIC THAT IT DOES RELATE TO STRATEGY AND THAT IT'S INTENDED TO OPTIMIZE THE RESOURCES THAT WE HAVE AVAILABLE.

AND WE THINK THAT THIS STUDY AND ITS OUTCOMES AND SOME OF THOSE DELIVERABLES IS DEFINITELY GOING TO PUT STAFF IN A POSITION TO ENHANCE HOW WE ARE MANAGING OUR PAVEMENT. SO WHEN WE TALK ABOUT OPTIMAL PAVEMENT MANAGEMENT, IT'S ACTUALLY VERY SIMPLE.

IT'S APPLYING THE RIGHT TREATMENT TO THE RIGHT ROAD AT THE RIGHT TIME.

AND I HAVE A SLIDE THAT'S COMING UP THAT I HOPE WILL BETTER ILLUSTRATE WHAT I MEAN BY THAT.

[04:30:03]

BUT THE ONE I WANT TO FOCUS ON TODAY IS SCENARIO BUILDER.

THIS IS A FUNCTION THAT ACTUALLY IS GOING TO ASSIST US WITH BUILDING THE WORK PLAN AND RUNNING THOSE VARIOUS FUNDING AND BUDGET SCENARIOS THAT WE'RE GOING TO PRESENT TO YOU TODAY AND LATER THIS SUMMER.

SO IN CARDIOGRAPH, THERE ARE CERTAIN CONDITIONS OR TREATMENT TRIGGERS THAT HAVE TO BE INPUTS INTO THE MODEL IN ORDER FOR IT TO PROVIDE THESE FUNDING AND BUDGET SCENARIOS.

SO HERE'S AN EXAMPLE OF A PARTICULAR PARAMETER OR TREATMENT TRIGGER THAT'S IDENTIFIED IN THE SYSTEM.

IT'S A RESIDENTIAL CONCRETE STREET WITH AN OCI RANGING BETWEEN 60 AND 70.

AND THE CONDITION OF THAT STREET REQUIRES 10% OR LESS OF THE PAVEMENT TO BE REMOVED AND REPLACED.

SO THAT'S THAT PANEL REPAIR CONDITION THAT I SHOWED YOU ALL EARLIER.

AND THEN WE'VE ASSIGNED A UNIT PRICE OF $40 PER SQUARE YARD FOR THIS PARTICULAR TREATMENT.

WHAT THE SYSTEM LOOKS AT LOOKS AT IS THAT CRITICAL OCI SCORE OF 63 THERE.

OKAY. AND SO WHEN IT'S RUNNING THE MODEL AND DEVELOPING THAT WORK PLAN IT'S LOOKING AT THOSE 63.

OR IT COULD BE 83 IF IT'S IN A DIFFERENT RANGE.

AND SAYING THESE ARE THE PROJECTS THAT WE NEED TO FOCUS ON, BECAUSE YOU'RE AT THE POINT WHERE YOU HAVE THAT RISK OF YOUR ASSET FALLING INTO THAT NEXT LEVEL OF DETERIORATION.

SO IT'S REALLY THAT CRITICAL OCI SCORE THAT'S MOST IMPORTANT IN RUNNING THESE MODELS TO ACHIEVE THAT GOAL OF THE RIGHT TREATMENT FOR THE RIGHT ROAD AT THE RIGHT TIME.

JUST BRIEFLY, I WANT TO TALK ABOUT BACKLOG.

WHEN WE GET TO THESE SCENARIOS YOU WILL SEE SOME BACKLOG NUMBERS, BUT BACKLOG IS BASICALLY DEFERRED MAINTENANCE.

IF I HAVE A WORK PLAN THIS YEAR THAT CONSISTS OF 100 PROJECTS, THERE MAY BE 300 OTHER STREETS THAT DON'T HAVE A TREATMENT APPLIED TO THEM.

AND SO WHAT THE SYSTEM DOES IS CALCULATES THE VALUE OF THOSE TREATMENTS APPLIED TO THOSE ROADS THAT WERE NOT DOING AND ASSIGNS A TOTAL COST TO THAT, AND THAT IS YOUR BACKLOG.

OKAY. SO IT STANDS TO REASON THAT BACKLOG COULD BE ALSO AN INDICATOR OF YOUR NETWORK'S HEALTH, JUST LIKE OCI CAN BE AN INDICATOR OF THE NETWORK'S HEALTH, AND THAT IF YOUR BACKLOG IS INCREASING WITH TIME, CHANCES ARE YOUR NETWORK IS DETERIORATING FASTER THAN THE MONEY YOU HAVE AVAILABLE TO COMMIT TO THE ASSETS.

AND IN THE CASE WHERE THE BACKLOG IS DECREASING WITH TIME, YOU'VE GOT MORE BUDGET RIGHT TO BE ABLE TO LOWER THE NUMBER OF ROWS THAT NEED A TREATMENT APPLIED TO THEM.

AND I HOPE THAT THIS CHART KIND OF HELPS TO EXPLAIN WHAT I WAS JUST TRYING TO SAY THERE.

THE CONDITION ONE IS A SITUATION WHERE THE BACKLOG IS INCREASING.

THESE NUMBERS ARE IN MILLIONS OBVIOUSLY IS INCREASING FROM YEAR TO YEAR.

AND IN THIS SCENARIO YOU WOULD EXPECT EITHER YOUR OCI SCORE IS GOING TO BE FLAT LINING OR LIKELY DECLINING OVER TIME.

CONTRASTING THAT WITH THE CONDITION TWO WHERE YOUR BACKLOG IS DECREASING OVER TIME OVER THOSE SEVEN YEARS, AND CHANCES ARE YOUR OCI IS GOING TO BE INCREASING AS A RESULT OF A DECREASE IN THE BACKLOG.

I JUST WANT TO GIVE YOU SOME QUICK HISTORY ON OUR BUDGET OVER THE PAST FEW YEARS, AND REALLY JUST TO FOCUS ON THIS YEAR'S BUDGET, FY 24, WE'RE AT APPROXIMATELY $33 MILLION, AND THIS BUDGET INCLUDES SALARIES.

GENERALLY SPEAKING, WE'RE SPENDING AT LEAST THIS YEAR.

YOU SAW IN THE EARLIER SLIDE $24 MILLION.

FOR THE MODELING, WE BENCHMARKED THE FUNDING AT $25 MILLION AND ASKED THE VENDOR TO USE THAT AS A BASIS FOR RUNNING SOME OF THESE MODELS.

SO AGAIN, THE 32 MILLION REPRESENTS THE TOTAL BUDGET FOR THE STREET DEPARTMENT, INCLUDING SALARIES.

AND SO IF YOU BACK OUT SALARIES AND SOME OTHER EXPENDITURES IN THE DEPARTMENT, WE'RE SPENDING 24 TO $25 MILLION A YEAR IN STREET MAINTENANCE.

SO WE KNOW THE VALUE OF $25 MILLION TWO YEARS AGO IS A LITTLE DIFFERENT THAN IT IS TODAY.

AND AS A RESULT, YOU KNOW, THE OUTPUTS ARE DECREASING.

AND THIS IS A CHART I PRESENTED AS WELL IN A LATE 2023 ABOUT ESCALATION.

AND WE DID VALIDATE THESE.

I ASKED MY TEAM TO VALIDATE THESE PARTICULAR PRICES JUST TO MAKE SURE WE ARE WHERE WE ARE.

AND SO RIGHT NOW, THESE PRICES ARE STILL VALID FOR THE WORK THAT WE'RE PERFORMING.

HOWEVER, WE HAVE NOT RENEWED THESE CONTRACTS WITH THE VENDORS THIS YEAR.

AND SO THERE'S A VERY REAL POSSIBILITY THAT THE VENDORS ARE GOING TO ASK FOR PRICE INCREASES.

I WOULD BE VERY SURPRISED IF THEY DID NOT.

[04:35:02]

THE FIX ALL SCENARIO REALLY CONSISTS OF AS AS IT INDICATES, IF WE COULD APPLY THE SPECIFIC TREATMENT TO A SPECIFIC STREET ACROSS THE NETWORK, HOW MUCH WOULD THAT COST? AND THEN THAT WOULD BE OBVIOUSLY A ONE TIME COST.

AND THEN THERE IS AN OBVIOUS INCREASE TO YOUR OCI AS A RESULT OF FIXING EVERYTHING.

THE STEADY STATE CONDITION I MENTIONED EARLIER, 71 IS THE STREET OCI.

THIS SCENARIO CONSIDERS HOLDING THAT 71 OCI FOR THE NEXT FIVE YEARS.

AND WHAT DO THE NUMBERS LOOK LIKE? THE CURRENT BUDGET, AS I MENTIONED EARLIER, WE USED $25 MILLION AS THE CURRENT BUDGET.

AND WE ASKED THE VENDOR TO MODEL THAT OVER THE NEXT FIVE YEARS AND REPORT OUT WHAT THE OCI LOOKS LIKE.

IF WE CONTINUE SPENDING $25 MILLION FOR THE NEXT FIVE YEARS, AND THEN FINALLY, THE DO NOTHING IS REALLY A MEASURE OF HOW FAR YOUR OK SCORE WILL FALL IN THE NEXT FIVE YEARS, FROM 71 DOWN TO WHAT NUMBER? BASED ON THAT SCENARIO.

SO THE FIX ALL SCENARIO.

THE ESTIMATED COST TO DO EVERYTHING WOULD BE $178 MILLION, AND THAT TAKES THE STREET OCR SCORE FROM A 71 UP TO AN 89. SO WE'D BE LOOKING PRETTY GOOD, BUT AT THE COST OF $178 MILLION.

THE NEXT SCENARIO, THE STEADY STATE SCENARIO THAT KEEPS THE CURRENT OCI SCORE CONSISTENT FOR THE NEXT FIVE YEARS.

THE COST TO SUSTAIN THAT, AS YOU CAN SEE.

WELL, LET ME BACK UP.

THE TOTAL COST OVER THE NEXT FIVE YEARS WOULD BE $131 MILLION.

AND SO WE SPLIT THAT OVER FIVE YEARS EQUALLY.

AND THAT PUTS US AS $26.2 MILLION.

AND YOU CAN SEE WHERE THE BACKLOG LANDS AS A RESULT FROM YEAR TO YEAR.

THE NEXT SCENARIO IS THE CURRENT BUDGET SCENARIO.

YOU'LL NOTICE THAT THE OCI SCORES FOR THE NEXT FIVE YEARS ARE KIND OF STAYED THE SAME.

AND IT'S ACTUALLY PRETTY CONSISTENT WITH THE STEADY STATE SCENARIO WHERE WE'RE SITTING AT 71 AND SPENDING $26.2 MILLION VERSUS THE $25 MILLION THAT WE'RE SPENDING CURRENTLY.

AND PROJECTED SPEND FOR THE NEXT FIVE YEARS KEEPS THE OK SCORE PRETTY CONSISTENT.

I THINK A POINT HERE I NOTICED HERE AT THE BOTTOM IS THE 25 MILLION, AS WE TALKED ABOUT, THIS IS JUST STREETS ONLY DOESN'T CONSIDER THE ALLEYS AT $25 MILLION IS STREETS PLUS ALLEYS.

OKAY. AND THEN FINALLY THE DO NOTHING SCENARIO.

AND ACTUALLY, I THINK I DO APOLOGIZE THAT OCI SCORE FOR 2025 SHOULD BE 71.

SO IN 2025, 71 FOR THE OCI SCORE AND THEN IN FIVE YEARS LATER IN 2029, THAT SCORE FALLS TO 57.

AND YOU CAN SEE THE SIGNIFICANT BACKLOG THAT'S CREATED AS A RESULT OF DOING NOTHING.

IN YEAR FIVE.

WE'RE AT $500 MILLION IN BACKLOGGED WORK.

SO CRYSTAL MENTIONED THERE ARE TEN SCENARIOS THAT WE HAVE SCOPED IN THIS CONTRACT.

WE'VE RUN FOUR OF THEM.

WE HAVE SIX ADDITIONAL SCENARIOS THAT ARE POSSIBLE.

WE JUST INCLUDED SOME POTENTIAL SCENARIOS HERE.

DOESN'T MEAN WE'RE MARRIED TO THESE.

THE EQUAL FUNDING DISTRIBUTION ACROSS ALL COUNCIL DISTRICTS IS A POTENTIAL SCENARIO.

WE COULD RUN EQUALIZING THE OSIS ACROSS ALL COUNCIL DISTRICTS.

FOR EXAMPLE, IF ONE COUNCIL DISTRICT HAS A 68 AND ANOTHER ONE HAS A 50, YOU KNOW, TRYING TO LOOK AT THOSE NUMBERS AND SEE WHERE WE WANT TO BE ACROSS THE BOARD.

ANOTHER ONE WE COULD LOOK AT IS DEFINING A SPECIFIC OCI FOR A SPECIFIC CLASSIFICATION OF STREET, SUCH AS AN ARTERIAL STREET.

WELL LET'S LOOK AT RESIDENTIAL SPECIFICALLY SINCE THAT COMPRISES MOST OF OUR NETWORK.

IF WE WANTED TO LOOK AT RAISING OUR OCI SCORE FOR THE RESIDENTIAL STREETS ALONE, WE COULD LOOK AT RUNNING A SCENARIO THAT TELLS US WHAT THAT WOULD LOOK LIKE.

OKAY. AND THEN FINALLY, JUST KIND OF RECAPPING WHAT WE DISCUSSED TODAY, I THINK THE FIRST THING I WANT TO INDICATE THAT PAVEMENT MAINTENANCE IS NOT PAVEMENT MANAGEMENT.

THAT OCI IS A SNAPSHOT IN TIME, THAT THE STUDY IS ONGOING AND WE'RE EXPECTING TO COMPLETE IT BY THE END OF THE SUMMER.

AND WE'LL BRING THOSE RESULTS BACK TO THE COUNCIL TO MAKE SOME DECISIONS ON FUNDING.

[04:40:01]

OKAY. COUNCILMEMBER BASS.

THANK YOU. THANK YOU FOR THE DETAILED PRESENTATION I LOVE DATA.

QUESTION I HAVE IS OKAY, SO ON SLIDE 144 IT MENTIONS THAT INCLUDES SALARIES AND BENEFITS.

AND YOU SAID THAT WAS ABOUT 12 MILLION.

SO THAT CURRENTLY. RIGHT.

SO THAT LEAVES CURRENTLY JUST UNDER 21 MILLION.

NOW QUESTION I HAVE IS HANG ON I THINK THERE SEEMS TO BE SOME.

NO IT'S OKAY.

YOU YOU'D SAID WHEN YOU MENTIONED ON SLIDE 144 INCLUDE SALARY AND BENEFITS, YOU'D SAID 12 MILLION, RIGHT? NO, NO, THE TOTAL BUDGET IS ABOUT $33 MILLION.

AND IF YOU TAKE OUT THE SALARIES AND BENEFITS, WE WE'RE LANDING AT ABOUT 24 TO $25 MILLION.

THAT'S COMMITTED TO 24, 25.

OKAY. OKAY.

SO ALL RIGHT. SO IT'S NOT 12.

OKAY. SO 2425 OKAY.

SO THE SCENARIOS, DO THE SCENARIOS INCLUDE SALARY AND BENEFITS THAT YOU THAT YOU HAVE ON.

SLIDES 147 148.

DO THOSE NUMBERS INCLUDE SALARY AND BENEFITS AS WELL? THEY DO THOSE THOSE UNIT PRICES I SHOWED YOU ON THAT PERIMETER SLIDE, I THINK IT WAS A $40 PER SQUARE YARD.

IF IF THAT WERE SOMETHING WE WERE DOING IN HOUSE, IT DID CONSIDER OUR LOADED RATE FOR IN-HOUSE WHICH WOULD BE SALARIES PLUS THE MATERIALS COST.

SO IT DOES. OKAY.

SO CURRENTLY.

OKAY. BECAUSE I'M LOOKING AT WHERE IT SAYS ON THE SCENARIO ON SLIDE 149, IT SAYS CURRENT BUDGET 25 MILLION.

BUT OUR CURRENT BUDGET IS 32.7 MILLION.

IS THAT THE ONE YOU'RE TALKING ABOUT? SO IT SAYS THAT SAYS CURRENT BUDGET SCENARIO.

CURRENT BUDGET, BUDGET 25 MILLION.

BUT ON SLIDE 144, IT SAYS CURRENT IS 32.7, RIGHT? THE 32.7 IS INCLUDES SALARIES AND BENEFITS.

THE $25 MILLION THAT'S SHOWN ON THE OTHER SLIDE EXCLUDES SALARIES OKAY.

RIGHT. AND SO THAT WAS MY QUESTION.

MY QUESTION WAS DO THE SCENARIO SLIDES INCLUDE SALARIES AND BENEFITS.

AND SO THEY DON'T.

I'M NOT SURE I UNDERSTAND YOUR QUESTION.

THE 25 MILLION THAT IS SHOWN ON THE SCENARIO FOR CURRENT BUDGET IS DOES NOT INCLUDE SALARIES AND BUDGET HAVE ALREADY BEEN TAKEN OUT FROM THE OVERALL.

I MEAN SALARIES AND BENEFITS HAVE ALREADY BEEN REMOVED FROM THIS BUDGET.

IS THAT WHAT YOU'RE ASKING? RIGHT. SO WHAT I'M TRYING TO CONFIRM IS BECAUSE THERE'S SCENARIOS ON SLIDES 144 140 I'M SORRY.

147 148 149 ARE ALL SCENARIOS.

SO I JUST WANT TO MAKE SURE THAT THAT THEY'RE, THAT THEY'RE, YOU KNOW, EQUAL.

RIGHT. SO DOES SLIDE 148.

DOES THAT ALSO NOT INCLUDE SALARIES AND BENEFITS? 148 IS EVERYTHING IN THIS SCENARIOS.

THE SALARIES AND BUDGETS HAVE BEEN I MEAN SALARIES AND BENEFITS ARE NOT INCLUDED.

IT'S ASSUMING A BASELINE OF $25 MILLION.

OKAY, THAT'S WHAT I WANTED TO CONFIRM.

OKAY. AND THEN I THINK THAT'S ALL I HAD.

THANK YOU. MAYOR. VERY GOOD, COUNCILOR WILLIAMS. THANK THANK YOU, MAYOR. THANK YOU, CRYSTAL AND TONY, FOR FOR THE INFORMATION.

JUST A COUPLE OF A COUPLE OF QUESTIONS.

TONY ON ON ONE OF THE SLIDES, IT'S A BAR CHART TO SHOW OUR PAYMENT AGE.

AND MY QUESTION FOR YOU IS.

HOW HOW DO YOU HOW DO YOU WHAT IMPACT HOW DO YOU INTEGRATE THE PAYMENT AGE INTO YOUR YOU SAID FIVE YEAR PLAN.

WHAT IMPACT DOES I KNOW THE OCI.

WHAT IS THIS. WHAT'S THE LESSONS HERE? HOW DOES THAT PLAY INTO YOUR PLAN? H? THE AGE AND THE MODELING DOES NOT NECESSARILY FACTOR INTO DEVELOPING THAT WORK PLAN.

IT IS THAT CRITICAL PCI NUMBER THAT I PRESENTED ON ONE OF THE CHARTS THAT THE THE SYSTEM THE MODELS LOOK AT IN TERMS OF INCLUDING THOSE IN THE PARTICULAR WORK PLAN.

OKAY. SO IT DOES NOT NECESSARILY CONSIDER THE AGE.

IT'S MORE THE CRITICAL OCI SCORE THAT DETERMINES WHETHER IT WILL BE INCLUDED AS A POTENTIAL WORK PLAN ITEM.

AND, YOU KNOW, WE UNDERSTAND THAT THESE OUTPUTS GETS US ABOUT 75% THERE IN TERMS OF A WORK PLAN.

[04:45:08]

OKAY, OKAY.

AND NEAR THE END, I, I'M NOT AS GOOD AS REMEMBERING THE NUMBERS THAT SOME FOLKS ARE, BUT ON ON ONE OF THEM YOU TALKED ABOUT THE CURRENT BUDGET ON ONE OF YOUR SLIDES NUMBERS.

I THINK GOING BACK TO THE 25 MILLION.

AND DID I HEAR YOU CORRECTLY JUST TO SAY THAT THAT WOULD BE MAINTAINING STATUS QUO AS FAR AS OCI, IF WE WERE TO TRACK THE 25 MILLION? DID YOU DID I HEAR YOU SAY THAT, THAT THERE WOULD BE NO CHANGE? AND WAS ONE OF YOUR SLIDES NEAR THE END? LET'S GET TO THAT SLIDE.

IS IT THIS SLIDE? YES, YES.

OKAY. AND MY QUESTION IS WHAT WHAT VARIATIONS IMPROVEMENT NEGATIVE OR POSITIVE.

IF WE ADOPTING BUDGET TO SUSTAIN SUSTAIN MEANS STATUS QUO.

AND I THOUGHT I HEARD YOU SAY THAT THERE WOULD BE NO APPRECIABLE IMPACT ON OCI SCORES.

DID I HEAR THAT CORRECTLY? WHAT I WAS SAYING AT THAT TIME, I ACTUALLY WAS COMPARING TWO SCENARIOS.

LET'S GO BACK TO THIS ONE.

THIS IS THE STEADY STATE THAT CONSIDERS THE CURRENT STREET OCI OF 71.

IF WE MAINTAIN THAT 71 FOR THE NEXT FIVE YEARS, WE WOULD NEED TO SPEND $26.2 MILLION ESTIMATED.

AND WHAT I WAS DOING WAS COMPARING THIS CHART TO THE CURRENT BUDGET OF $25 MILLION.

OKAY. AND LOOKING AT THE OCI SCORE THERE, IT'S IT'S AT 70, 71.

SO IT'S ALMOST EQUALIZED BETWEEN THE TWO SCENARIOS IN TERMS OF THE OCI NUMBER OKAY OKAY OKAY.

AND NEXT ON YOUR SLIDE WHERE IT'S MAINTENANCE VERSUS MANAGEMENT.

JUST A QUESTION THAT I'VE, THAT I'VE BEEN ASKED A NUMBER OF TIMES.

OKAY. AND YOU'VE GOT THAT ONE AND ANOTHER ONE.

YOU HAD SUBPAR CHARTS WITH STRATEGIES AT FIVE BAR CHARTS ON IT.

I'M SORRY, I DON'T. I CAN'T GIVE YOU THIS THE NUMBERS, BUT YOU HAD THERE WERE FIVE STRATEGIES.

OH, OKAY. I KNOW WHICH ONE.

YOU KNOW WHAT I'M TALKING ABOUT.

THERE'S THAT ONE. I'LL TRY TO DO A BETTER JOB OF KEEPING UP WITH THE WITH THE.

I THINK IT IS HERE.

IS THAT THE ONE? NO, BUT THAT'S OKAY, I THINK.

I THINK I CAN GET GET TO MY QUESTION WITHOUT THAT.

YOU HAD A SLIDE.

IT WAS FIVE STRATEGIES.

MY QUESTION IS THE QUESTION I GET A LOT.

YOU TALKED ABOUT LET ME LET ME SEE IF I CAN FIND IT.

I'LL HAND IT TO YOU IF I CAN FIND IT RIGHT HERE.

IS IT THE MAJOR PROJECT CATEGORIES? COUNCILMAN. YES, BUT IT HAD THE IT HAD STRATEGIES.

ARE YOU TALKING ABOUT THIS? OKAY.

MAJOR PROJECT STRATEGIES.

OKAY. IT'S WHAT IT SAYS.

THAT'S IT RIGHT THERE.

OKAY. ALL RIGHT.

MY QUESTION IS, TONY, THIS IS ONE THAT I GET OFTEN.

IT'S POTHOLE FILLING.

PAVEMENT REHAB REPAIR.

WHERE DOES IT FALL THERE.

THAT'S A VERY GOOD QUESTION.

AND MY RESPONSE TO IT IS IT DOESN'T FALL IN ANY OF THESE CATEGORIES.

THAT IS REALLY MORE OF A RESPONSE TO A DISTRESS WHERE ASPHALT NEEDS TO BE APPLIED BECAUSE THERE IS A POTHOLE.

SO IT DOESN'T FALL INTO ANY OF THESE CATEGORIES.

BUT ONCE WE APPLY THAT, WELL, FIRST OF ALL, THE CONDITION THAT EXISTS ON THE GROUND IS A DISTRESS AND THE TREATMENT IS TO POTHOLE TO TO REPAIR IT AS A POTHOLE.

OKAY. SO ANOTHER OPTION WE COULD TAKE WITH THAT.

LET'S, LET'S TAKE FOR EXAMPLE I APOLOGIZE.

LET'S TAKE, FOR EXAMPLE, A STREET, A RESIDENTIAL STREET THAT IS IN OVERALL GOOD CONDITION.

LET'S SAY IT'S AN OCI OF A 70 AND WE GET A CALL FOR A POTHOLE.

IN ONE PARTICULAR PAVEMENT PANEL, THERE ARE TWO STRATEGIES WE COULD TAKE.

WE COULD EITHER A GO IN AND JUST REPAIR THAT POTHOLE AND THEN WALK AWAY, WHICH IS PROBABLY NOT THE MOST DESIRABLE STRATEGY FOR IT.

OR WE COULD BE GO IN AND TEMPORARILY APPLY ASPHALT TO REPAIR THAT POTHOLE, BUT THEN COME BACK AND REMOVE THAT PARTICULAR SECTION OF PAVEMENT, OKAY.

AND REPLACE IT WITH GOOD CONCRETE.

OKAY. AND IF YOU WERE TO DO THAT, IS THERE A CATEGORY FOR THAT OR WOULD THAT TYPE OF REPAIR FALL OR

[04:50:06]

IT'S NOT IT'S IT'S NOT IN A PARTICULAR CATEGORY.

AS FAR AS POTHOLE REPAIRS, I WOULD NOT CLASSIFY THAT WE BUDGET FOR IT, OBVIOUSLY, BECAUSE WE KNOW WE HAVE TO RESPOND TO IT.

BUT I WOULD NOT PLACE THAT IN ANY ONE OF THESE PARTICULAR CATEGORIES.

OKAY. AND FINALLY, YOU ALSO USED THE TERM ABOUT BRIDGING.

OKAY. WHEN YOU WERE REFERRING TO, I THINK ASPHALT OVERLAY VERSUS TOTAL CONCRETE RECONSTRUCTION, WOULD YOU EXPLAIN TO ME AGAIN BRIDGING BRIDGING.

WHAT? WHAT IS THAT? WHAT IS, WHAT IS WHAT IS WHAT IS BRIDGING? HOW DO HOW DO WE GET TO THE BRIDGE WHEN IT COMES TO I THINK I UNDERSTAND THE OPTION WHETHER OR NOT YOU'RE GOING TO DO AN OVERLAY, WHETHER OR NOT YOU'RE DOING TOTAL RECONSTRUCTION AND YOU REFERENCE THAT TERM.

OKAY. BRIDGING OKAY.

TO TO THE TO THE TO THE COMMON USER.

EXPLAIN THAT BRIEFLY.

CAN YOU. BRIDGING.

WE TOOK THIS ACTION BECAUSE IT WAS A BRIDGE TREATMENT.

DOES THAT MEAN THAT SOMETHING PERHAPS WILL MAY BE DONE IN THE FUTURE TO THAT STREET.

IS THIS BRIDGING MEAN TEMPORARY? I DON'T MEAN FIX WHAT IS WHAT DOES BRIDGING MEAN IN A IN A GENERAL SENSE, IN THAT PROCESS, BRIDGING MEANS WE DON'T HAVE THE FUNDING TO RECONSTRUCT THE ROADWAY.

OKAY. BUT BECAUSE OF THE DYNAMICS OF THAT ROADWAY, WE NEED TO DO SOMETHING.

AND GOING IN AND REMOVING A, AN EXISTING POTHOLE PATCH AND REPLACING IT WITH MORE PATCHING IS NOT GOING TO REALLY MATERIALIZE INTO A VIABLE SOLUTION TO IT.

AND SO WE WILL AT TIMES GO IN AND APPLY AN ASPHALT OVERLAY TO THOSE PARTICULAR CIRCUMSTANCES IN ORDER TO BRIDGE.

AND THAT COULD BE A SITUATION WHERE WE MIGHT LOOK AT THAT STREET A LITTLE MORE CLOSELY, AND OUR FOLLOWING YEAR'S WORK PLAN TO POTENTIALLY INCLUDE IT AS A RESIDENTIAL STREET RECONSTRUCTION. RIGHT? RIGHT, RIGHT. SO FUNDING IS A IS A DRIVER.

IT IS CORRECT.

IT IS. OKAY. I JUST WANT TO UNDERSTAND THAT TERMINOLOGY.

THANK YOU MAYOR. VERY GOOD.

COUNCIL MEMBER HEDRICK. THANK YOU MAYOR.

I THINK THIS IS ENDLESSLY FASCINATING HERE.

THE STREETS. I LOVE TALKING ABOUT STREETS, OF COURSE, BUT WHEN THE STUDY IS COMPLETE, WE HAVE ALL THE DATA.

AND WE'LL ALL OF THAT DATA BE MADE AVAILABLE IN A GIS FORMAT THAT THE PUBLIC CAN SEE.

THAT IS A GOAL THAT I WOULD LOVE TO ACHIEVE.

THAT IS GOING TO TAKE SOME WORK ON OUR PART, THOUGH, TO GET THERE, BECAUSE WE DON'T HAVE THE INFRASTRUCTURE ESTABLISHED YET ON OUR STREET DEPARTMENT WEB PAGE TO DO IT, SAY, IN AUGUST OR SEPTEMBER, BUT IT IS DEFINITELY SOMETHING WE WANT TO DO.

I'D LOVE TO SEE. I KNOW WE HAD THE OLD DATA IN A JAR.

YES, WE GOT A NEW GIS DIRECTOR AND LOVE FOR HIM TO ABSOLUTELY GET OVER.

ANOTHER QUESTION I HAD IS REGARDING YOUR PROJECT PROGRAMING CONSIDERATIONS.

TRAFFIC COUNTS WEREN'T INVOLVED IN THAT.

HOW DOES THAT PLAY INTO ANY REPLACEMENT? PLANS? YEAH.

TRAFFIC COUNTS ON RESIDENTIAL STREETS, I DON'T THINK REALLY PLAYS A ROLE BECAUSE THOSE ARE NOT TYPICALLY HEAVILY TRAFFICKED ROADWAYS.

BUT I WOULD SAY HISTORICALLY WE HAVE NOT IN THE TIME I'VE BEEN HERE, AND WHAT HAS BEEN DONE IN THE PAST HAVE NOT REALLY LOOKED AT TRAFFIC COUNTS AS A AS A FACTOR.

AND I CAN TELL YOU THE MODELS HAVE NOT DO NOT LOOK AT THAT AS WELL AS A FACTOR.

IT IS MERELY THOSE PAVEMENT DISTRESSES THAT WE'RE CONSIDERING IN TERMS OF MAKING DECISIONS.

JUST THINKING OF IT LOGICALLY, IF YOU HAVE A MORE HIGHLY TRAFFICKED ROAD AND ARTERIAL, YOU WOULD GET MORE BANG FOR YOUR TRAVEL BUCKS BY REPLACING THAT THAN YOU WOULD A RESIDENTIAL ROAD THAT'S IN POOR CONDITION JUST BECAUSE THERE'S MORE.

THEY UNDERSTOOD THAT YOU WOULD THINK, WELL, DEFERRED BACK TO JUST THE METHODOLOGY AND HOW IT CONSIDERS IT, AND THERE HAS BEEN NO CONVERSATION AS WE'VE GONE THROUGH THIS PROCESS RELATED TO TRAFFIC DATA.

THE CONSULTANT HAS NOT ASKED FOR ANY TRAFFIC DATA BECAUSE IT IS FOCUSED ON PAVEMENT DISTRESSES AND THAT CRITICAL PCI, BUT NOT JUST NOT TALKING ABOUT NECESSARILY THE CONSULTANT RECOMMENDATIONS, BUT OUR CONSIDERATIONS ON HOW WE REPLACE PROJECT PROGRAMING.

WHAT CONSIDERATIONS GO INTO THAT? DOES TRAFFIC COUNT PLAY AT ALL? AND ANOTHER ONE TOO IS CITIZEN COMPLAINTS.

BECAUSE I KNOW THAT'S A LARGE PART THAT I DEAL WITH THAT SOMEONE CALLS ME THAT THEY HAVE THIS ONE ROADWAY IN FRONT OF THEIR HOUSE THAT THEY DRIVE EVERY DAY, AND THEY WANT TO SEE IT REPLACED, BUT BUT THEIR PERCEPTION MAY BE ONE THING.

AND OURS, WELL, THAT'S NOT GOING TO BE DOWN THE LINE FOR ANOTHER TEN, 20 YEARS OR SO NECESSARILY.

THE STAKEHOLDER COMPLAINTS OR STAKEHOLDER INPUT, I'LL PUT IT THAT WAY.

IT'S CERTAINLY SOMETHING I THINK WE CAPTURE AT TIMES POTENTIALLY THROUGH THOSE SERVICE REQUESTS THAT WE REVIEW WHEN WE'VE DRILLED DOWN ON A PARTICULAR ASSET THAT WE MAY WANT

[04:55:02]

BUT I WILL NOT SAY THAT WE DON'T CONSIDER STAKEHOLDER INPUT IN THIS PROCESS.

BUT, YOU KNOW, IT'S NOT LIKE THE DRIVING FACTOR BEHIND THE DECISION MAKING, BUT CERTAINLY IS A FACTOR.

OKAY, GOOD. AND FINAL THING IS I WOULD LOVE TO SEE SOME ADDITIONAL SCENARIOS WITH INCREASING THE ARTERIALS PCI AS MUCH AS POSSIBLE, INCREASE IN THE INDUSTRIAL ROADS AS HIGH AS POSSIBLE, JUST BREAKING OUT THOSE DIFFERENT SEGMENTS OF ROADWAYS THAT WE HAVE.

SURE. I DON'T NECESSARILY THINK THAT THE ONES LIKE EQUAL FUNDING ACROSS THE COUNCIL DISTRICTS ARE NECESSARILY THE BEST TO RUN.

IF WE ONLY HAVE TEN SCENARIOS TO RUN, I'M I'M SURE SOME AREAS OF COUNCIL DISTRICTS AND NEWER AREAS MIGHT HAVE WAY HIGHER THAN OLDER PARTS OF TOWN, SO I DON'T THINK THAT'S NECESSARILY THE BEST SCENARIO TO RUN IF WE ONLY HAVE A LIMITED NUMBER.

OKAY, OKAY.

YEAH. THAT THIRD BULLET ON THIS SLIDE HERE DOES CONSIDER WHAT YOU'RE TALKING ABOUT.

COUNCIL MEMBER HEDRICK IS YES.

YES. SO WE CAN CERTAINLY DO THAT.

THANK YOU. THANK YOU MAYOR.

GOOD. COUNCILOR BASS.

THANK YOU. THANK YOU.

TONY, DOES THE DOES THE OCI INDEX IN CONSIDER THE PAVEMENT SURFACE MATERIAL? SO DOES IT CONSIDER WHETHER IT'S ASPHALT OR IT DOES CONCRETE? OKAY. IT DOES DO THAT.

YES IT DOES. OKAY. WE HAVE ON THAT PARAMETER SLIDE I SHOWED YOU, I JUST SHOWED YOU ONE CONDITION, ONE TRIGGER, BUT WE HAVE 30 TRIGGERS IN THE MODEL. AND THEY DO CONSIDER PAVEMENT TYPES OKAY.

AWESOME. I WAS CURIOUS ABOUT THAT. AND THEN TO PIGGYBACK ON WHAT DYLAN WAS SAYING YEAH, I'D LIKE TO SEE SOME DIFFERENT SCENARIOS.

BECAUSE THE LOOKING AT SLIDE 134 AND DOING THE MATH, THE COST OF DOING LIKE FOR EXAMPLE, ALLEY RECONSTRUCTION IS $1.36 MILLION PER LANE MILE, WHEREAS AN ASPHALT OVERLAY IS ONLY $36,000 PER LANE MILE.

I MEAN, THAT'S THAT'S A 30, 37 TIME DIFFERENCE.

SO I'D LIKE TO SEE YOU KNOW, SOME SCENARIOS THAT FOCUS ON BECAUSE, YOU KNOW, THE BUDGET IS SO SPREAD OUT, YOU KNOW, I MEAN, THERE'S SUCH A GREAT DIFFERENCE BETWEEN, LIKE, DOING AN ASPHALT OVERLAY OR A RECONSTRUCTION OR EVEN TO AN ARTERIAL.

I'D LIKE TO SEE SOME OF THOSE DIFFERENT SCENARIOS WHERE WHERE WE'RE GETTING THE BEST VALUE FOR OUR MONEY.

AND OF COURSE, I'D LIKE TO SEE SOME SCENARIOS THAT SHOW AN INCREASE FROM THE CURRENT BUDGETS TO SEE, YOU KNOW, HOW QUICKLY WE COULD GET THAT OCI UP TO, YOU KNOW, A NUMBER CLOSER TO 75 OR SO.

OKAY. THANK YOU.

THANK YOU. VERY GOOD.

ANY ADDITIONAL QUESTIONS ON THIS SECTION? I SEE NONE. THANK YOU.

ALL RIGHT. THANK YOU. AND THAT MOVES US TO SEVEN E ECONOMIC DEVELOPMENT BOND INITIATIVE.

I'LL START OUT BY SAYING, FOR THE RECORD, I REALLY APPRECIATE THE JOHNNY CASH REFERENCE EARLIER FOR MORE WAYS THAN ONE, BUT ONE IS THAT MATT MADE AN INTERESTING POINT THAT KIND OF TIES TO SOME OF THE THINGS IN THE TOOLBOX, ECONOMIC DEVELOPMENT WISE, THAT JACO IS GOING TO PRESENT HERE IN A MINUTE.

BUT THAT PARCEL BY PARCEL REALLY IS THE OTHER SIDE OF THE COIN OF OF ECONOMIC DEVELOPMENT IN THE UPCOMING COMP PLAN THAT WE'RE TALKING ABOUT AND HOW THAT PROPER LAND USE IS REALLY A PARCEL BY PARCEL DECISION AND DEPLOYMENT OF OUR RESOURCES.

SO I THOUGHT THAT WAS INTERESTING ON MATT'S PART WITH THAT.

JACO. YES, SIR.

GOOD AFTERNOON, MAYOR AND COUNCIL.

THANK YOU VERY MUCH FOR THE OPPORTUNITY.

THE I PROMISE I TRIED TO GO REALLY QUICKLY.

THE FIRST SLIDE I LIKE TO TALK ABOUT IS ECONOMIC DEVELOPMENT STRATEGIC PLAN WITH COUNCIL ADOPTED LAST YEAR.

AGAIN THIS MORNING, MATT AND ALLISON DISCUSSED ABOUT THE GARLAND CHALLENGE, THIS 1218 MONTH PROCESS AND THIS STRATEGIC PLAN PROCESS. WE LEARNED A LOT, INCLUDING THOSE CHALLENGES.

AND WHEN WE TALKED ABOUT BUILT OUT, GARLAND IS BUILT OUT.

THAT'S ALWAYS WE TALKED ABOUT IT'S REALLY IN GENERAL AND GARLAND 30,000 ACRES AND ACTUALLY 29,000 ACRES, EXACT.

10%, 3000 ACRES IS UNDEVELOPED.

THAT'S GREENFIELD SITE.

HOWEVER THOSE IT'S INCLUDED FLOODPLAIN.

SO SO IT'S ONLY 1000 ACRE WHICH IS 3.4% IS DEVELOPABLE.

THERE IS NO IMPROVEMENT VALUE ON IT.

SO THAT IS THE REALLY WE HAVE ONLY 3.4% NOW.

[05:00:02]

SO KNOWING THAT NORTH GARLAND ALONG GEORGE BUSH THERE IS SOME BIG DEVELOPMENT IS HAPPENING ALSO.

YOU KNOW, I-30, THERE IS A LOT OF MULTIFAMILY AND THOSE A LOT OF PROJECT HAPPENING.

SO I THINK THIS 1000 ACRE 3% IS PROBABLY DECREASED.

SO WE REALLY WANTED TO MAKE SURE WHATEVER WE BRING TO THE TABLE, WE BRING IT TO YOU HAS TO BE THE BEST OF THE BEST PROJECT FOR GARLAND.

THIS THROUGH THE STRATEGIC PLAN, THERE IS A SEVEN FOCUS AREA.

THE FIRST ONE IS CREATE NEW DESTINATION TO ATTRACT TOURIST DOLLARS.

WE LOVE TO PROVIDE, YOU KNOW GARLAND RESIDENTS.

WE WANTED TO GARLAND RESIDENTS SPENT MONEY IN GARLAND.

THEY DON'T NEED TO GO TO OUTSIDE GARLAND TO GO TO RESTAURANT AND BUYING THINGS.

BUT ALSO WE WANTED TO HAVE PEOPLE OUTSIDE GARLAND TO COME TO GARLAND TO SPEND THEIR MONEY.

THAT IS REALLY OUR GOAL.

SUPPORT RETENTION AND EXPANSION OF CITY'S HIGH VALUE PROPERTY TAX BASE.

LAST YEAR, LATE LAST YEAR, WE RENEWED CITY RENEWED THE ECONOMIC DEVELOPMENT SERVICE AGREEMENT WITH THE GARLAND CHAMBER.

THE SECOND ITEM IS WORKING WITH VERY CLOSELY WITH THE GARLAND CHAMBER.

WE PUT TOGETHER TOP 100 MANUFACTURING INDUSTRIAL BUSINESS COMPANY IN GARLAND, SO GARLAND CHAMBER STAFF CAN VISIT THEM AND THEY CAN ASK WHAT WE CAN DO FOR THEM, ANY CHALLENGES, ANY EXPANSION PLANS SO THAT WE CAN PROACTIVELY REACH OUT TO THEM, FINDING OUT THEIR CHALLENGES.

IF THERE IS ANYTHING CITY CAN ASSIST, THAT'S SOMETHING WE WANTED TO HELP THEM.

THIRD THING IS PROMOTE AND ENCOURAGE ACROSS THE CITY REDEVELOPMENT OF UNDERUTILIZED AND LOW VALUE PARCELS.

AGAIN, IF THERE IS A GARDEN STYLE MULTIFAMILY, WE WANTED TO WORK WITH DEVELOPER TO MAYBE DEMOLISH AND PUT HIGHER DENSITY.

CITY IS BUILT OUT.

WE CANNOT EXPAND.

WE HAVE TO GO TO VERTICAL IF IT'S MORE DENSITY MEANS A HIGHER TAX VALUE AND MORE PEOPLE LIVING IN GARLAND THEY CAN SPEND MONEY.

BUT ALSO AGAIN, IF WE HAVE AND ADDING A DENSITY, IT'S NOT JUST THE RESIDENTIAL SIDE.

MAYBE WE CAN TALK ABOUT COMMERCIAL SIDE, INDUSTRIAL AREA RETAIL SIDE IF THERE IS SMALL BUILDING SITTING A LARGER PROPERTY WE WANTED TO MAXIMIZE, WE WANTED TO ADD DENSITY. IF THERE IS ONLY 20,000FT², LET'S PUT THE 200,000 SQUARE FOOT BUILDING ON THE INDUSTRIAL SITE SO THAT WE HAVE POTENTIALLY BRING MANUFACTURING COMPANY AND ADDING MORE BUSINESS, PERSONAL PROPERTY TAX AND THE MORE OPPORTUNITY FOR CITY IMPROVED THE IMAGE AND ALTER THE PERCEPTION OF THE CITY.

THIS IS KIND OF INTERESTING THING.

WHENEVER WE'RE TALKING TO DEVELOPER AND AND OTHER PEOPLE, SOMETIMES THEY SAY GARLAND IS BLUE COLLAR CITY.

WELL, WE LEARNED THROUGH THIS PROCESS.

ACTUALLY, GARLAND IS NOT BLUE COLLAR CITY.

THAT IS REALLY IMAGE OF GARLAND AND THE PERCEPTION OF PEOPLE HAS.

WELL, WHY IT'S REALLY WHEN YOU LOOK AT THE MAJOR CORRIDOR AND THEN WE HAVE A BEAUTIFUL DOWNTOWN WILL HELP PEOPLE GET HERE.

AS YOU CAN IMAGINE, PEOPLE COMING THROUGH THOSE MAJOR THOROUGHFARES, WHICH IS GARLAND AVENUE, FOREST LANE 66 AND LAVON, THAT AREA, YOU KNOW WHAT THAT LOOK LIKE.

THAT IS THE IMAGE OR PERCEPTION IN GARLAND.

SO HOW WE CAN IMPROVE THAT AND IMPROVE THE LIVABILITY OF THE CITY WITH A HIGH VALUE FOR MANY HOUSING OPTIONS AND NEIGHBORHOODS.

THIS REALLY BRINGING DIVERSITY HOUSING OPTIONS FOR THE NEWCOMERS BUILD ON THE CITY ENTREPRENEURIAL.

I CANNOT SAY THIS WORD AND NEVER CAN SAY THIS WORD.

ENERGY AND DIVERSITY WITH THE ENHANCED SMALL BUSINESS PROGRAM, THIS ONE ALSO WORKING WITH THE CITY GARLAND CHAMBER.

WE PUT TOGETHER LIKE A TOP 100 BUSINESSES.

WE PUT THE SMALL BUSINESS 100 LIST.

I KNOW CHAMBER STAFF MEETING WITH THE COUNCIL MEMBERS AND BUT ALSO THEY HAVE A LIST EACH DISTRICT THAT PROBABLY 1520 BUSINESSES IN EACH DISTRICT, THEY'RE GOING TO BE MEETING WITH THEM AND THEN THEY'RE GOING TO ASK THE SAME QUESTION.

WHAT IS THEIR CHALLENGE, HOW CITY CAN HELP? SO IT'S REALLY WORKING WITH THE CHAMBER STAFF.

AND WE REALLY WANTED TO THOSE ENERGY.

AND AGAIN, I HAVE TO SAY AN ENTREPRENEURIAL ENERGY AND THEN DIVERSIFYING THOSE SMALL BUSINESS PROGRAM AND PROVIDE OPPORTUNITY FOR GARLAND RESIDENTS TO GAIN SKILLS NECESSARY TO COMPETE IN AN EVOLVING REGIONAL ECONOMY.

THAT'S THIS SUBJECT TOUCHED THIS MORNING.

EDUCATION ATTAINMENT.

THIS IS SOMETIME WE HEAR FROM DEVELOPER.

AND THEN ALSO ALL THE STUDIES SHOWING EDUCATIONAL ATTAINMENT IS STRONGLY TIED TO INCOME LEVEL.

SO HOW WE CAN HELP CITIZENS OF GARLAND TO IMPROVE THEIR SKILLS TO GET HIGHER INCOME LEVEL.

[05:05:03]

DALLAS COLLEGE, THAT'S REALLY SOMETHING WE ARE WORKING ON.

SO 2019 BONDS.

SO WE ARE REQUESTING 2025 BOND.

BUT BEFORE THAT WE LIKE TO TALK ABOUT 2019 BOND $46 MILLION.

THE WE WE WE GOT AND THEN FUNDING IMPLEMENT HOW WE IMPLEMENTED THIS $46 MILLION.

THERE'S A BIG TWO PROGRAMS WE HAVE.

ONE IS ECONOMIC DEVELOPMENT AND REDEVELOPMENT PROGRAM FOR THAT LAND ACQUISITION ASSEMBLAGE.

WHEN WE'RE MEETING WITH DEVELOPER THEY ALWAYS ASK OKAY HOW MUCH LAND DO YOU HAVE? IF WE DON'T HAVE CONTROLLED LAND, THAT'S VERY HARD.

WE CANNOT SITTING IN.

OF COURSE NOT. THE DRIVER'S SEAT, NOT EVEN THE FRONT SEAT.

WE WANTED TO MAKE SURE WE WORK WITH DEVELOPER.

QUALITY DEVELOPER.

THEY UNDERSTAND OUR VISION AND THEY CAN HELP ACHIEVE OUR GOAL.

DEFINITELY. WE WANTED TO HAVE THE LAND WE OWN.

SO THAT'S REALLY WE ARE FOCUSING ON THIS.

WITH THIS FUNDING.

WE WE ACQUIRE SOME LAND, BUT WHEN WE ACQUIRE LAND, WE ALWAYS HAVE A FUTURE REDEVELOPMENT PROJECT.

IN OUR MIND, IT'S REALLY TARGETED AREA THAT WE WE FOCUS ON ALSO FACADE IMPROVEMENT AND PROPERTY IMPROVEMENT PROGRAM. WE HAVE WHENEVER PRIVATE PROPERTY OWNER WANTED TO INVEST THEIR AREA.

IT'S NOT THE MAINTENANCE COST WE WANTED TO HELP.

THEY HAVE TO REALLY MAINTENANCE IS REALLY THERE.

AS A PROPERTY OWNER, THEY ARE RESPONSIBILITY.

IF THEY WANTED TO INVEST, WE WANT IT TO BE REALLY DISCUSSED WITH THEM, HOW WE CAN BEAUTIFY THEIR PROPERTY, LANDSCAPING, MAYBE IF THEY HAVE SOME PLAN.

OKAY. WE WANTED TO ASK A LITTLE BIT MORE.

THAT'S THE PART. MAYBE WE CAN SHARE THE COST.

THAT IS HOW WE WANT.

WE USE THIS FACADE IMPROVEMENT PROGRAM.

INCENTIVE. NEIGHBORHOOD VITALITY PROGRAM.

THIS IS BECKY AND SCOTT, TEAM LEAD CORRIDOR REVITALIZATION AND GATEWAY IMPROVEMENT.

THAT'S SOMETHING WE TALKED ABOUT.

IMAGE PERCEPTION OF GARLAND, HOW WE CAN BEAUTIFY THAT CERTAIN AREA.

IT'S REALLY RIGHT AWAY CITY CAN CONTROL.

THAT'S SOMETHING WE WANTED TO THEN THAT CITY'S INVESTMENT MAY BE AFFECTING PRIVATE INVESTMENT AND PRIVATE PROPERTY OWNER CAN DO BETTER ON THEIR PROPERTY WHERE THE HEART IS.

THAT'S REALLY SUCCESSFUL PROGRAM THAT'S REALLY BECKY'S AND SCOTT TEAM IS REALLY PROUD OF.

AND WE I THINK WE HEAR A LOT OF GREAT STORY.

2025 BOND PROPOSAL.

DEFINITELY ED BOND FUND WILL HELP SPARK REDEVELOPMENT AND ED OPPORTUNITIES.

AGAIN THIS IS RESPONDING TO INITIATIVE ESTABLISHED IN THE ED STRATEGIC PLAN.

EARLIER WE DISCUSSED MAKE TARGETED.

I THINK IT'S TARGETED IS DEFINITELY THE KEY WORD INVESTMENTS IN THE COMMUNITY GENERATE ADDITIONAL PROPERTY TAX REVENUE.

WE ADDING A DENSITY AND SO THAT WE CAN BRING A MORE PROPERTY TAX REVENUE, PROVIDE ADDITIONAL AMENITIES FOR THE RESIDENTS, AMENITY MEANS, OF COURSE, THE PUBLIC SIDE AND PRIVATE SIDE.

I THINK 2019 BOND ALLOWED.

YOU KNOW, WE INVESTED A LOT IN PARKS AND TRAILS AND DEFINITELY THAT IS AMENITY IN THE PUBLIC SIDE.

HOWEVER, I HEAR WHENEVER NEW RESIDENTS COME AND WHEN THEY CAN MAKE A DECISION, SOMETIMES THEY THINK ABOUT WHAT THE RETAIL SURROUNDING IT.

WELL, I, WE I THINK YOU GUYS DISCUSSED THIS MORNING ABOUT GROCERY STORE AND THE RESTAURANT AND THOSE THOSE ARE PRIVATE SITE AMENITY.

THE PEOPLE LOOKING AT, THAT'S SOMETHING WE WANTED TO BRING.

THAT'S A DESTINATION RETAILER.

WE WANTED TO BRING IN.

WELL, AGAIN, CREATE DESTINATION THAT WILL BE REGIONAL DRAW.

THAT'S DEFINITELY BRINGING MORE SALES TAX TO THE CITY, PROVIDE ADDITIONAL DEVELOPMENT OPPORTUNITY DESPITE BEING BUILT OUT.

WE ARE THE TWO BIG PROJECTS AND PROGRAM.

PROJECT IS MORE AREA FOCUSED.

OF COURSE, MEDICAL DISTRICT WE THIS IS A HIGH, HIGH, HIGH PRIORITY FOR US TO COMMUNITY HOSPITAL RECRUITMENT.

I-30 HARBOR POINT AREA WITH THE EXTENSION OF GEORGE BUSH I THINK DEFINITELY GIVING US OPPORTUNITY TO GARLAND COUNTLESS AREAS.

THIS IS THROUGH THE INVASION GARLAND STUDY IN 2012.

THERE IS A SEVERAL CATALYST AREA WAS IDENTIFIED FOR JUPITER AND THEY ARE JUST KIND OF ADDED WALNUT JUST BECAUSE TIFF ONE WAS EXPANDED.

SO WE WANTED TO MAKE SURE THAT INCLUDING FOREST JUPITER AND WALNUT AREA PGT FIREWALL BUNKER HILL THIS IS YOU KNOW, GEORGE BUSH NORTH GARLAND AREA. IT'S A LOT OF DEVELOPMENT HAPPENED AND THEN NEWER DEVELOPMENT.

BUT MAYBE WE ARE MISSING OPPORTUNITY.

MAYBE WE WANTED TO HAVE MORE CAPTURE MAXIMIZING OPPORTUNITY FOR GARLAND AND LBJ SOUTH GARLAND AVENUE WITH THE LBJ'S IMPROVEMENT AND

[05:10:08]

SO WHAT CAN WE DO FOR THAT AREA PROGRAMS? DEFINITELY. THIS IS ALL GARLAND NOT JUST THE SPECIFIC AREA, BUT LAND ASSEMBLAGE.

CONTINUE TO THE TARGETED INVESTMENT FOR THE CITY DESTINATION CREATION.

WE TALKED ABOUT LOT CORRIDOR IMPROVEMENT, BEAUTIFICATION, MAJOR CORRIDOR GATEWAY FEATURE IMPROVEMENT, AND THE FACADE IMPROVEMENT.

SO NEXT FEW SLIDES I WANTED TO TALK ABOUT CERTAIN THIS PROJECT AREA.

FIRST ONE IS MEDICAL MEDICAL DISTRICT.

MEDICAL DISTRICT. MASTER PLAN WAS PUT TOGETHER 2021 AND THE LAST YEAR STREETSCAPE IMPROVEMENT PLAN WAS ADOPTED.

THAT STRATEGY IS DEFINITELY.

WE WANTED TO BRING COMMUNITY HOSPITAL BACK TO THE GARLAND, I MEAN CITY.

AND THEN WITH THAT, WITH THOSE DEVELOPMENT, WE WANTED TO ALIGN WITH THAT DEVELOPMENT.

WE WANTED TO DO THE STREETSCAPE STREETSCAPING IMPROVEMENT, BEAUTIFYING THAT AREA AND ADDING TREY ON THE WELLNESS PARK BEHIND THE VA ALONG THE CREEK. THAT'S IN THE PART OF THE PLAN.

VA PARTNERSHIP IS A KEY.

AND THE LAND ASSEMBLAGE.

EARLIER THIS YEAR, WE ACQUIRED SIX ACRES FOR THE FUTURE COMMUNITY HOSPITAL SITE.

AND ALSO WE HAVE FOUR ACRE WEST SIDE OF MEDICAL MEDICAL DISTRICT.

SO WE'RE STARTING LAND ASSEMBLAGE IN THIS AREA.

NEXT PROJECT IS I-30 AND HARBOR POINT.

I-30 CORRIDOR CATALYST AREA PLAN WAS ADOPTED 2017.

ALSO, WE HAVE A LOT OF PARK PLAN, THE BIKE PLAN.

AND OF COURSE THIS IS WE HAVE BEAUTIFUL LAKE.

WE WANTED TO MAXIMIZE AGAIN CREATING A DESTINATION.

I THINK WE HAVE A LOT OF OPPORTUNITY IN THAT AREA.

AND THE STRATEGY DEFINITELY GATEWAY IMPROVEMENT.

THAT IS ENTRANCE TO GARLAND.

IT'S BEAUTIFUL LAKE.

AND OKAY, WE WANT TO MAKE SURE PEOPLE UNDERSTAND THEY ARE COMING TO GARLAND.

SO WE WANTED TO HAVE THOSE GATEWAY IMPROVEMENT IMPROVE THE ACCESS AND ALIGNMENT OF STREET.

THAT ACCESS IS KEY.

WHEN WE WANTED TO BRING PEOPLE HOW PEOPLE CAN GET THERE, SO WE WANTED TO IMPROVE THAT AREA.

UTILIZATION OF CITY OWNED PROPERTIES.

WE HAVE WE OWNED A BIG PARKING LOT THAT DOESN'T REALLY BRING ANY TAX VALUE TO THE CITY.

SO HOW WE CAN UTILIZE THAT, IMPROVE THAT, AND IN FULL SERVICE HOTEL, THAT'S ALWAYS WE LOVE TO HAVE ADDITIONAL HOTEL MOTEL TAX, MIXED USE DEVELOPMENT, THE LAND ASSEMBLAGE TO PROMOTE REDEVELOPMENT.

AS WE DISCUSSED, THAT NEXT ONE IS THE FOREST, JUPITER AND WALNUT AREA SMALL AREA PLAN.

WE WE HAVE IS 2013.

IT'S KIND OF OLD.

IT'S 11 YEARS OLD.

SO PROBABLY WE NEED TO UPDATE THAT, HOWEVER, AND PUT TOGETHER INTERNAL TASK FORCE WHICH INCLUDED DIFFERENT DEPARTMENTS.

THEN WE WE DID THE SITE TOUR.

WE LOOK IDENTIFY WHAT CAN WE DO, WHAT KIND OF IMPROVEMENTS THAT WE CAN MAKE, HOW WE CAN WORK WITH THE PROPERTY OWNER, WHAT KIND OF CONVERSATION WE SHOULD HAVE TO PROMOTE REDEVELOPMENT AND REVITALIZE REVITALIZATION.

AGAIN, THIS THIS EXPANDED TO INCLUDE THE JUPITER ONE AREA.

THIS MAP IS JUPITER AND WALNUT AREA BUT ALIGNS WITH THE TIF ONE EXPANSION.

THE STRATEGY IS FLOODPLAIN MITIGATION, UNFORTUNATELY.

WELL, UNFORTUNATELY THAT THE FACT IS THIS AREA HAS A DRAINAGE ISSUE.

AND IF WE WANTED TO BRING A DEVELOPER AND THEN WHEN YOU LOOK AT THAT AREA, WELL, IT'S FLOODPLAIN.

WE CAN'T DO ANYTHING ABOUT IT.

BUT CAN WE.

WE HAVE OPPORTUNITY TO MITIGATE THAT.

I DON'T KNOW THAT YET, BUT WE ARE TALKING WITH THE WORKING WITH THE ENGINEERING DEPARTMENT, AND THEY'RE DOING THE FLOOD STUDY IN THIS AREA RIGHT NOW AND IN PARTNERSHIP OF FOREST JUPITER STATION.

OF COURSE, THEY HAVE ADDITIONAL LAND.

SO HOW WE CAN WORK WITH THEM? LAND ASSEMBLAGE.

WE'D LOVE TO DO MULTIFAMILY REDEVELOPMENT IN THAT AREA.

CORRIDOR IMPROVEMENT.

THAT'S PART OF THE FOREST LAND, AS WE DISCUSSED.

AND THE FACADE IMPROVEMENT.

GEORGE BUSH, FIREBALL, BUNKER HILL.

AGAIN, WE DO NOT HAVE ANY SMALL AREA PLANS, SO MAYBE WE NEED TO PUT WE NEED TO WORK ON THE THE PLAN MASTER PLAN.

THE STRATEGY WILL DEFINITELY.

WE LOVE TO HAVE A FULL SERVICE HOTEL WITH A CONVENTION CENTER.

THIS IS ALWAYS DANA AND CVBS TEAMS. WE WE TALK A LOT RECRUIT FOR THE PERSONAL DEVELOPMENT SURROUNDING, I MEAN, SOME PROPERTIES STILL AVAILABLE, A FIREWALL, TOWN CENTER, HOW WE CAN MAXIMIZE THE DEVELOPMENT IN THAT AREA.

AND, OF COURSE, STRATEGIC PROJECT, WE CAN INCENTIVIZE THOSE MIXED USE DEVELOPMENT, BASICALLY HIGH TAX VALUE AND A DESTINATION CREATION FOR THAT.

[05:15:10]

THE QUESTION DEFINITELY WHAT ECONOMIC DEVELOPMENT PROJECT AND THE PROGRAM SHOULD BE CONSIDERED.

THAT IS REALLY QUESTION TO YOU.

WE MENTIONED A COUPLE OF PROJECTS, BUT IF YOU LIKE TO ADD OR SOMETHING, DEFINITELY WE LOVE TO HEAR FROM YOU.

AND THE NEXT STEP IS ENGAGEMENT OF KIMLEY-HORN WE WORK WITH THAT KIMLEY-HORN TEAM HELPED US 2019 BOND.

THEY UNDERSTAND GARLAND GARLAND CHALLENGE WHAT WE ARE LOOKING FOR, SO WE ENGAGE THEM AND THEY WILL HELP US.

KIND OF SIMILAR PROCESS BOND STUDY, COMMITTEE MEETINGS AND THEN PROJECT ASSESSMENTS.

WE TALKED ABOUT SOME PROJECTS AND THEY CAN HELP US COST BENEFIT ANALYSIS, ECONOMIC IMPACT ANALYSIS, AND ALSO CASE STUDY AND FEASIBILITY.

IT'S A GREAT PROJECT, BUT HOW MUCH GOING TO COST? WHAT'S RETURN ON INVESTMENT, THOSE KIND OF THINGS.

KIMLEY-HORN CAN HELP US WITH THAT.

I'M DONE WITH THE PRESENTATION.

VERY GOOD. GO AHEAD.

GO AHEAD. DO WE I KNOW WE HAVE A TIMELINE IN HERE FOR THE FOR THE ECONOMIC DEVELOPMENT BOND STEERING COMMITTEE AND WHATNOT.

I WONDER IF WE WANT TO TOUCH ON THOSE BEFORE WE JUMP INTO QUESTIONS.

SORRY TO CALL AN AUDIBLE.

YES. THERE WE GO.

YEAH. MIGHT BE HELPFUL IN RELATIVE TO WHAT WE'RE TALKING ABOUT HERE.

HERE WE GO. I'LL JUMP.

JUMP OUT OF THE HOT SEAT.

DON'T GO FAR.

RIGHT? OH, YEAH.

AS WE PREVIOUSLY PREVIOUSLY DISCUSSED WITH COUNCIL, WE WERE TARGETING TO TRY TO GET DECISIONS ON A BOND STUDY COMMITTEE AFTER THIS MEETING TO TO GET UP AND RUNNING TO LOOK AT PARTICULARLY ECONOMIC DEVELOPMENT.

BUT WHATEVER ELSE COUNCIL WANTS IN, IN THIS POTENTIAL BOND PROGRAM AND YOU KNOW, TO START, WE HAVE, YOU KNOW, AN ESTABLISHMENT OF A BOND PROGRAM CHARGE OF WHAT WE WANT TO PROVIDE TO THEM.

YOU SHOULD HAVE THAT IN YOUR PACKET.

IT SHOULD BE IN THE FRONT OF WHAT? THE BOND CHARGE.

PRELIMINARY. WHAT WE'RE SHOWING IT TO BE.

WE ARE STILL UTILIZING THE 19 INDIVIDUALS FOR THE BOND STUDY COMMITTEE.

SO TWO PER COUNCIL DISTRICT WITH THE MAYOR HAVING THREE.

AND THEN THE NEXT SLIDE IS REALLY KIND OF BACK TO THE $315 MILLION BUCKET ON, ON HOW MUCH YOU WANT THE BOND STUDY COMMITTEE TO LOOK AT.

OR DO YOU WANT THEM TO LOOK AT ALL, ALL ASPECTS AND NOT HAVE A CAP ON THAT FUNDS, OR DO YOU WANT TO JUST CAP THEM AT WE DON'T WANT A TAX RATE INCREASE.

JUST GO UP TO THE DEBT SERVICE CAPACITY.

SO DETERMINING KIND OF WHAT SCOPE OR DOLLAR AMOUNT THEY ARE LOOKING INTO.

AND THE NEXT THE NEXT BELOW THAT IS SHOWING A PRELIMINARY TIMELINE.

IF WE SHOOT FOR A MAY 3RD, 2025 ELECTION.

SO BY BY DOING THAT, WE'RE PROPOSING A JULY 16TH APPOINTMENT OF A BOND STUDY COMMITTEE.

IN AUGUST THROUGH DECEMBER, THE BOND STUDY COMMITTEE WOULD BE DOING WORK WITH US AND WITH KIMLEY-HORN IN DETERMINING WHAT CASE STUDIES, WHAT RETURN ON INVESTMENT, WHAT FEASIBILITY STUDIES WE NEED TO HAVE COMPLETE TO TO GET BUY IN FOR PARTICULAR PROJECTS AND WHAT PROGRAMS THEY WANT TO UTILIZE.

THE BOND STUDY COMMITTEE WILL REPORT BACK TO COUNCIL IN JANUARY, AND COUNCIL WILL DELIBERATE ON WHAT THEY WOULD LIKE TO SEE IN THAT BOND BOND PACKAGE WITH AN ORDINANCE CALLING THAT ELECTION IN FEBRUARY AND A PUBLISHED NOTICE OF ELECTION APRIL 11TH.

WITH THAT ELECTION DAY, MAY 3RD.

AND MANY OF THESE DATES ARE ARE REQUIRED BY LAW AND SET BY LAW.

SO WE CAN'T REALLY MOVE A LOT OF THOSE IF WE'RE SHOOTING FOR THAT END DATE OF MAY 3RD.

AND WHY WE'RE PRESSING TO KIND OF GET STARTED IN JULY, JUST TO GIVE THEM ENOUGH TIME TO REALLY GIVE A GOOD EVALUATION OF PROJECTS, BECAUSE REALLY, THEY'LL ONLY HAVE ABOUT 3 OR 4 MONTHS TO TAKE A LOOK AT THOSE.

AND I'LL SORRY AGAIN ABOUT CALLING THE AUDIBLE THERE.

I JUST THOUGHT IT MIGHT BE RELEVANT AS WE TALK ABOUT THE BOND STUDY COMMITTEE AND ECONOMIC DEVELOPMENT BOND PROGRAM COMING UP.

COUNCIL. WHEN WE WENT OVER THE CIP IN JANUARY AND FEBRUARY OF THIS YEAR.

DIRECTION FROM YOU AT THAT TIME WAS TO COME BACK AS PART OF THIS WORKSHOP AND CONSIDER THE BOND INITIATIVE AND REALLY GET THAT COMMITTEE STARTED.

[05:20:03]

SO I WANTED TO THROW THAT OUT THERE AND THEN OF COURSE, START CONVERSATION AROUND THAT.

AND WE'LL TAKE ANY QUESTIONS AND FEEDBACK.

OKAY. VERY GOOD.

COUNCIL MEMBER. DUTTON. HI.

FIRST THANK YOU SO MUCH.

I LOVE YOU GUYS JUST FOR PUTTING US IN HERE.

BUT ON YOUR PAPER, ON YOUR CATALYST AREAS, YOU HAVE FIRST JUPITER, WALNUT AND MEDICAL DISTRICT LISTED AS TOP THREE.

BUT WE ARE ACTUALLY 10TH ONE REDHEAD STEPCHILD.

IT'S OKAY THOUGH. IS ON THE THE ONE THAT WAS IN OUR BINDER.

THE THIS THIS.

SO SUPER EXCITED.

TO SEE SOME STUFF HAPPEN AT FIRST IN JUPITER.

AND WALNUT. IT'LL BE AMAZING.

SO WHATEVER I CAN DO TO HELP YOU, PLEASE LET ME KNOW, BECAUSE I'M MORE THAN HAPPY TO BE BOOTS ON THE GROUND FOR YOU TOO.

SO I'VE ALREADY.

I'VE ALREADY GOT A LIST FOR YOU RIGHT HERE.

SO YOU JUST CALL ME.

THANK YOU GUYS FOR ALL OF YOUR HARD WORK ON THIS, AND IT'S EXCITING TO SEE WHAT HAPPENS.

OKAY. COUNCIL MEMBER LUCHT.

RIGHT. DEPUTY MAYOR, HOW DID I GET IN THERE SO QUICK? SO AGAIN, WITH THE ECONOMIC DEVELOPMENT STRATEGIC PLAN AND KIND OF PUTTING THIS ALL TOGETHER, I AS MUCH AS WE CAN FOCUS ON THOSE SMALL SHOPPING CENTERS THAT PEOPLE DRIVE BY WHEN THEY'RE ON THOSE ROADS THAT TAKE THEM WHEREVER THEY'RE GOING TO THE CITY.

I'D LIKE TO SEE US PARTNER WITH BUSINESS OWNERS AS MUCH AS POSSIBLE.

LIKE I, LIKE YOU SAID IN THE PRESENTATION YOU KNOW, WE DON'T WANT TO FUND EVERYONE'S REDEVELOPMENT PROJECTS, BUT IT WOULD BE NICE TO BRING EVERYONE, AT LEAST TO THE STATUS QUO AND THEN HELP THEM AFTER THAT.

AND THEN AS FAR AS THE BOND PROGRAM THAT YOU MENTIONED HAVING NO CAP OR GOING UP TO THE DEBT SERVICE CAPACITY.

WHAT IS THAT NUMBER? WHAT'S THE DEBT SERVICE CAPACITY? CAPACITY NUMBER IS 315 MILLION.

YOU KNOW, EARLIER WE WE HAVE JUST PRELIMINARY PLUGGED 150 FOR ECONOMIC DEVELOPMENT.

THERE'S 70 FOR STREETS.

THE THE COST OF LIVING ADJUSTMENT, 75 TO 80.

AND THEN ALSO THE FACILITIES CONDITION OF ADDING ANOTHER 15.

SO IT REALLY DEPENDS ON HOW YOU ALL WANT TO SHAPE THAT, WHAT YOU ALL WANT THEM TO LOOK AT.

IT WOULD, IT WOULD BE MY PREFERENCE TO MAYBE INCLUDE A STREETS PORTION OF, OF INTO THE, INTO THE BOND CONSIDERATIONS.

AND THEN I WOULD LIKE TO CAP AT THAT DEBT SERVICE CAPACITY.

I DON'T WANT TO RAISE THE TAX RATE IN ORDER TO ACHIEVE A BOND PROGRAM.

SO THANK YOU.

OKAY. MAYOR PRO TEM MOORE.

THANK YOU, MR. MAYOR.

FIRST OF ALL, I'M VERY EXCITED ABOUT WHAT I'M HEARING AS IT RELATES TO WHAT YOU'RE TALKING ABOUT.

AND HARBOR POINT.

I STILL FEEL THAT THAT AREA IS ONE THAT THERE'S JUST SO MUCH POTENTIAL THERE.

THERE'S SO MUCH WE CAN DO, ESPECIALLY IN THE WAY OF MAKING IT A DESTINATION LOCATION.

AS IT RELATES TO WHAT'S TAKING PLACE RIGHT ACROSS THE HARBOR, I STILL WOULD LIKE TO SEE YOU ALSO INCLUDE SOMEWHERE THERE THOUGH, THIS IDEA THAT, YOU KNOW, WE'RE LANDLOCKED AND THE ONLY WAY WE CAN GO IS UP ARE OUT INTO THE WATER.

SO I WOULD LIKE TO SEE US DO SOMETHING IN THE WAY OF LOOKING AT THE POTENTIAL FROM MILLER ROAD ALL THE WAY BACK AROUND TO BASS PRO, BECAUSE IF WE'RE ABLE TO DO THAT, WE'RE TALKING DEMOGRAPHICS.

WHEN POTENTIAL PROJECT DEVELOPERS COME TO US, IT WON'T BE A MATTER OF THEM HAVING TO DO A RESEARCH.

WE WILL HAVE ALREADY DONE THAT RESEARCH AND WE WILL BE ABLE TO SAY TO THEM, THESE ARE THE PROBLEMS, WE KNOW WHAT THE PROBLEMS ARE, BUT HERE IS THE OPPORTUNITY, HERE IS THE POTENTIAL. AND SO I REALLY WOULD LIKE TO SEE SOMETHING ALONG THOSE LINES ALSO.

AND THEN I HAVE A QUESTION FOR YOU.

AND LEGAL MAY STOP ME HERE, BUT IT SOUNDS LIKE TWO THINGS ARE GOING TO HAPPEN THEN IF WE ARE GOING TO FOLLOW THIS GUIDELINE, ONE WOULD BE THAT WE'RE LOOKING AT THE THE BOND PROGRAM, BUT THE OTHER ONE WOULD BE THAT WE'VE JUST FINISHED TALKING ABOUT THE COLA MAYBE TAKING PLACE DURING THAT SAME PERIOD OF TIME.

AND MATT, I WAS ASKING YOU HOW IS THAT GOING TO LOOK IF WE TAKE BOTH OF THOSE TO THE VOTERS IN THE SAME YEAR, DO YOU HAVE ANY THOUGHTS ABOUT THAT, OR IS THAT THEY'RE TWO SEPARATE THINGS THAT THE PUBLIC IS NOT GOING TO HAVE ANY PROBLEM WITH THAT? WHAT WHAT ARE WE SAYING THERE? SO THERE REALLY ARE TWO SEPARATE THINGS.

[05:25:01]

AND WE'RE SHOOTING FOR A MAY ELECTION.

WHEN WE WERE TALKING ABOUT THE COST OF LIVING ADJUSTMENT AND THE TAX RATE INCREASE ASSOCIATED WITH THAT, THAT REALLY FALLS INTO PLAY TO THE TAX CODE IN.

AND FIRST OFF, WE HAVE TO DO THAT IN NOVEMBER.

SO THERE THE IN THIS SCENARIO IT WOULD BE A MAY ELECTION FOR BOND PROGRAM.

NO TAX RATE INCREASE.

IF WE GO TO COUNCILWOMAN LOOKS PROPOSAL DON'T GO OVER THE CAPACITY DELIBERATION THROUGH THE BUDGET CYCLE NEXT YEAR FOR A NOVEMBER ELECTION OF A TAX RATE INCREASE ON THE OPERATIONS TO COVER COST OF LIVING OR WHATEVER OPERATIONAL COST THAT WOULD TAKE THAT THAT WOULD TAKE FOR THAT TAX RATE. SO THERE'S KIND OF TWO SEPARATE THINGS.

ONE IS I WANT TO ISSUE BONDS.

WE GOT TO GO TO THE VOTERS TO GET A PROPOSITION PUT IN PLACE AUTHORIZING US TO ISSUE BONDS.

AND THEN NOVEMBER, YOU WOULD BE GOING WITH A TAX RATE INCREASE TO SEE WHAT VOTERS APPETITE IS FOR A TAX RATE INCREASE, TO PAY FOR ADDITIONAL OPERATING COSTS.

OKAY. AND I THINK IT'S VERY IMPORTANT THAT WE LOOK AT THAT AND HOW WE'RE GOING TO STRUCTURE THAT.

HOW ARE WE GOING TO PUT THAT BEFORE THE BUDGET? BECAUSE NORMALLY ALL THEY'RE GOING TO SEE IS MORE MONEY.

OKAY. SO WITH THAT THANK YOU, MR. MAYOR. RIGHT. AND THE CITY MANAGER AND I WERE JUST DISCUSSING THAT SCENARIO WAS RUNNING THROUGH MY HEAD OF.

BUT, YOU KNOW, THE BOND IS A MAY 25TH.

THE COLA WOULD BE A NOVEMBER 26TH OR WOULD IT? OKAY. 20 555.

YEAH. RIGHT. NOVEMBER 25TH.

YEAH. WE WOULD NEED TO DO IF WE'RE DOING NO CATCH UP.

YEAH. RIGHT.

SORRY SORRY MY YEAR BUT SEPARATE.

BUT THEN THE ONE THING THAT I WAS WHICH SORT OF SPARKED IS IF, IF THE COLA GOES TO A NOVEMBER ELECTION, WE'VE GOT 80 MILLION THAT WE ARE EARMARKING FOR THAT IN THIS, THAT, THEN THAT IF IT GOES THAT DIRECTION IT THEN FREES THAT 80 MILLION UP. CORRECT.

SO THERE'S THAT TO FACTOR IN THERE AS WELL, JUST TO MAKE IT THAT MUCH MORE COMPLEX TO TRY TO FIGURE THESE TWO OUT.

ALL RIGHT. VERY GOOD.

COUNCILMEMBER WILLIAMS. THANK YOU. MAYOR. I DID TALK TO DEPUTY MAYOR PRO.

TIM'S QUESTION.

I GOT IT RIGHT. OKAY.

THAT WE DON'T EXCEED THE DEBT SERVICE LIMIT.

UNDER NO CIRCUMSTANCES.

AND UNLESS YOU ADVISE US THAT THERE ARE CIRCUMSTANCES THAT DICTATE US.

THAT. BUT. BUT I AGREE WITH HER TOTALLY THAT WE DON'T DO THAT.

SECONDLY I LIKE THE IDEA OF MOVING FORWARD, BUT ALSO AYAKA SOMEWHERE IN THIS, AND I'M NOT SURE TO HOW YET.

AND WE'LL GO WITH THIS BOND PROGRAM.

HOW MUCH? YOU KNOW, THERE'S ALSO A SOUTH TIP, BUT HARBOR POINT HAS MADE US FORGET IT, BECAUSE THERE'S NOTHING IN IT.

BUT WE'VE GOT ONE DOWN THERE.

REVITALIZATION OR REDEVELOPMENT? WE'RE LOADED ON THE SOUTH SIDE WITH THAT, AND I'M NOT SURE HOW WE COULD DO IT, BUT I'D LIKE TO SEE SOME RESOURCES GOING TO. I'M NOT SAYING, YOU KNOW, PICK UP THESE THESE ABSENTEE OWNERS AND DO ALL THIS STUFF.

I'M NOT SAYING WHAT I'M SAYING, BUT BUT THERE'S SOME WAY, SOME WAY IF WE CAN BE SELECTIVE AND SELECTING PROPERTIES OR OWNERS OR HOWEVER THAT WE CAN, IF NOTHING ELSE, THAT THAT WE COULD USE AS A MODEL OR TARGET PROJECT SO THAT WE CAN BEGIN TO MOVE BECAUSE ON THAT AND THAT'S WHAT MOST OF OUR MOST OF OUR BUSINESS AND DEVELOPMENTS OR SMALL IN NATURE COMPARED TO SOME OF THE OTHER BIG ONES OUT ON FOREST LANE.

SO I'D LIKE TO SEE IF WE MOVE FORWARD WITH THIS.

I KNOW A LOT OF TIMES, YOU KNOW, WE LOOK AT THE BIG TICKET BOND ISSUES AND ITEMS, BUT I'D LIKE TO SEE SOME THOUGHT GIVEN TO HOW HOW WE CAN DO IT IF WE CAN'T, BUT HOW WE CAN INTEGRATE SOME REDEVELOPMENT PROJECTS, NOT ALWAYS NEW PROJECTS INTO THIS THAT'S GOING TO IMPACT.

AND AGAIN, WE'RE TALKING AGAIN ABOUT ANOTHER GATEWAY.

WE'VE TALKED A LOT ABOUT GATEWAYS, BUT THAT'S ALSO A GATEWAY.

OKAY. AND IT STUFF'S BEEN DOWN THERE A LONG, LONG TIME.

SO I'M FOR MOVING FORWARD.

BUT I'D LIKE TO SEE AND APPOINTING THE COMMITTEE.

BUT I'D LIKE TO SEE US AND SOME OF OUR, OUR SCOPE, OUR DIRECTIONS THAT WE COME UP WITH SOME PROJECTS THAT ARE NOT NECESSARILY NEW PROJECTS, BUT

[05:30:06]

AT THIS TIME, IT'S A LITTLE DIFFERENT FROM WHAT TRADITIONAL BOND PROJECT PROGRAMS ARE, BUT I DON'T UNLESS MR. CITY ATTORNEY OR MATT TELL US THAT THERE'S SOME LEGAL REASONS WHY WE CAN'T INTEGRATE THIS KIND OF THING IN IT.

I CERTAINLY WOULD REQUEST, MR. CITY MANAGER, THAT WE THAT WE LOOK AT THAT AND INTEGRATE THAT FEATURE MOVING FORWARD IN THIS NEW BOND PROPOSAL.

ALL RIGHT. OKAY.

ANY YOU'RE LOOKING LIKE YOU HAVE SOME COMMENTS.

YOU HAVE SOME COMMENTS. I'M WE HAVE SEVERAL EXCITING OPPORTUNITIES DISCUSSING WITH THE SOME PROPERTY OWNERS SO WELL WHENEVER IT'S READY.

DEFINITELY. WE LOVE TO BRING THAT HERE.

OKAY. ALL RIGHT. THANK YOU.

THANK YOU MAYOR. VERY GOOD.

COUNCIL MEMBER HEDRICK. THANK YOU, MAYOR, FOR THE BONDS COMMITTEE.

I DON'T WANT TO PUT ANY LIMITS ON WHAT THEY CAN TALK ABOUT.

I WANT THEM TO CONSIDER EVERY OPTION, TAX INCREASES OR NOT.

THAT'S WHAT WE DID IN 2019.

WE CAME BACK WITH A THREE TIERED RECOMMENDATION SYSTEM THAT HAD AND ULTIMATELY WAS UP TO THE COUNCIL TO DECIDE AT THAT TIME FOR WHAT THEY WHAT THEIR APPETITE WAS TO TAKE TO THE VOTERS. AS FAR AS PROJECTS, AGAIN, PUT EVERYTHING ON THE TABLE, I DON'T THINK IT'LL BE AS LARGE AS I DON'T THINK IT'LL BE AS MUNICIPAL FACILITY DRIVEN, BECAUSE WE DON'T HAVE THE ANIMAL SHELTER OR THE POLICE EVIDENCE BUILDING DRIVING THIS, BUT THINGS WE MIGHT WANT TO SEE.

LET'S IMPROVE INDUSTRIAL AREAS.

LET'S LOOK AT MAYBE GETTING SOME KIND OF MAKERSPACE FOR ENTREPRENEURS AND ARTESIANS.

LET'S LOOK AT REDEVELOPMENT OF MULTIFAMILY APARTMENTS.

THE STUDY DATA WE SHOWED EARLIER, THE SURVEY TRAILS IS NUMBER ONE, HOW ARE WE GOING TO GET MORE TRAILS MONEY IF WE DON'T DO SOMETHING LIKE THIS IN A BOND PROGRAM? LET'S LOOK AT TRAILS.

PARKS IS ALWAYS POPULAR, LOOK GOOD.

EVERYTHING. DON'T PUT A CAP ON IT.

DON'T BE SHORTSIGHTED. LET'S HAVE THEM HASH IT OUT.

THEY GOT 19 SMART PEOPLE WHO CAN COME BACK TO US WITH A WONDERFUL RECOMMENDATION.

AND THEN THE NINE OF US CAN TALK ABOUT IT FROM THERE.

SO THAT'S HOW I FEEL ABOUT IT.

LET'S LET'S GO FOR MAXIMUM AND SEE WHAT THEY COME BACK WITH.

THANK YOU MAYOR. ANY ADDITIONAL QUESTIONS? COMMENTS? COUNCIL MEMBER OTT I CONCUR.

WELL THANK YOU. WELL, THERE THERE YOU GO.

MAN OF FEW WORDS.

ALRIGHT, SO OH, COUNCILMEMBER WILLIAMS, ONE QUESTION.

IF WE MOVE FORWARD WITH THIS, WE'RE LOOKING AT A ESSENTIALLY A TWO WEEK WINDOW AND NOTIFICATION TO TO LIKE THE COMMITTEE IF I'M READING THAT.

RIGHT. RIGHT. YES.

THE 16TH. OKAY.

CITY CITY MANAGER.

OKAY. WHAT YOU DON'T HAVE TO ANSWER TO TODAY, BUT WHAT WOULD BE THE PROCESS FOR NOTIFYING THOSE THOSE? THOSE PEOPLE? WHAT'S THAT? WHAT DOES THAT PROCESS LOOK LIKE? CAN YOU SHARE A LITTLE BIT ABOUT YOU KNOW, BEFORE WE GOT WE GOT SOME NAMES IN THE QUEUE BECAUSE WE, WE THOUGHT WE WERE GOING TO DO SOMETHING EARLIER.

BUT SOME OF THAT A LOT OF THAT HAS CHANGED INDIVIDUALS.

SO MR. CITY MANAGER, HOW DO YOU SEE WITH A TWO WEEK WINDOW TO MY SELECTION BY JULY 16TH.

HOW DO YOU SEE THAT PROCESS? FRONT END PROCESS WORKING? I WOULD SEEM TO ME THAT I MEAN, THE EVERYBODY BIT SOME CHANGES IN THE RECRUITMENT FROM IT FORCE.

YES. BUT I MEAN, I THINK WE'VE BEEN OPERATING UNDER THE ASSUMPTION THAT THE FOLKS YOU WERE IN, THE FOLKS WE WERE INTENDING TO APPOINT, WHENEVER THAT WAS, I'VE LOST TRACK OF THE TIME THAT THOSE THAT THOSE PEOPLE WOULD BE CONSIDERED MOVING FORWARD TO THIS ONE. NOW, OBVIOUSLY SOME FOLKS HAVE CHANGED IN THE PROCESS, BUT I, I THINK WE WERE SORT OF WORKING UNDER THAT TO GET AN UNDERSTANDING OF THAT.

IF IF SOMEONE WAS BEING CONSIDERED FOR THE PREVIOUS OR THE THE FIRST SORT OF IDEA OF THE OF THIS NEXT BOND STUDY COMMITTEE, THAT YES, WE DELAYED IT AND SORT OF CHANGED THE SCOPE A LITTLE BIT, BUT THAT THOSE WOULD BE THE SAME FOLKS MOVING FORWARD.

NOW, YOU NOBODY'S BEEN APPOINTED YET.

SO YOU CAN ALL MAKE YOUR DECISIONS HOW YOU HOW YOU PLEASE.

BUT AT LEAST MY, MY INTENTION WAS TO CARRY FORWARD WITH THE THREE I HAD GOING IN.

OKAY. I'M JUST ASKING BECAUSE WE'VE GOT A NEW, NEW UPDATED 21ST CENTURY PROCESS.

AND LET'S SAY IF WE MAKE THOSE APPOINTMENTS, MR. QUARTERMASTER AND CITY MANAGER IS WE'VE GOT A PROCESS FOR HOW OUR REGULAR BOARDS AND COMMISSION APPOINTEES ARE GOING TO BE HANDLED.

WE PUT THAT TOGETHER.

SO WE INCLUDE THAT IF WE WERE TO GO OUT AND LET'S SAY NEXT WEEK AND SELECT THOSE PEOPLE FOR THE MAYOR'S COMMENTS, WHAT THEY WOULD THEY BE

[05:35:06]

THEY WILL GET NOTIFICATION THROUGH THE NORMAL CHANNELS.

IS THAT RIGHT? YEAH.

SO WE WOULD HANDLE THIS LIKE WE WE DO NOW WITH OUR NEW BOARDS AND COMMISSION PROCESS.

IN FACT ALL THE THE NAMES THAT WERE SUBMITTED BEFORE FOR THE BOND STUDY COMMITTEE ARE ARE IN THERE, I BELIEVE.

AND WE'LL SEND THAT WE'LL SEND A LIST OUT TO YOU AFTER THIS MEETING SO THAT YOU KNOW WHO WAS WHO WAS RECOMMENDED BEFORE AND CAN LOOK AT THAT, VERIFY IT, WORK THROUGH OUR WORK THROUGH OUR PROCESS FOR THAT.

AND THEN THAT'LL QUEUE UP FOR A JOINT APPOINTMENTS ON JULY 16TH.

AND THEN THAT WILL, THEY'LL GO THROUGH OUR NOTIFICATION SYSTEM AS AS THE PROCESS HAS RIGHT NOW.

OKAY. THANKS, SIR.

THANK YOU. MAYOR. AND IT IT WOULDN'T HURT FOR EACH OF US TO REACH OUT TO THOSE PEOPLE AND JUST KIND OF TOUCH BASE WITH THEM.

AND, YOU KNOW, I DON'T KNOW WHAT DISCUSSIONS YOU HAD WITH THEM PREVIOUSLY.

BUT I KNOW THE DISCUSSIONS I HAD WITH WITH THE FOLKS I WAS MOVING FORWARD, THE THEY I PROBABLY NEED TO UPDATE THEM ON A FEW THINGS, SO TO SPEAK, ON JUST HOW THE PROCESS HAS HAS CHANGED OVER THE LAST SEVERAL MONTHS.

SO SO THAT WOULD BE A THAT WOULD BE A SUGGESTION.

SO WITH THAT, SOMEWHERE IN THIS WE MOVED INTO ITEM EIGHT.

AND, AND I THINK THAT I THINK THAT WE HAVE I THINK THAT WE HAVE COVERED EVERYTHING IN ITEM EIGHT, OTHER THAN WE ARE ALL IN AGREEMENT THAT WE ARE MOVING FORWARD WITH IT.

IF YOU HAVE ANYTHING ELSE, MR. CITY MANAGER. YEAH. SO A COUPLE THOUGHTS.

ONE IS THAT I THINK WE'RE CLEAR ON NEXT STEPS WITH THE BOND STUDY COMMITTEE AND THE BOND PROGRAM.

SO WE'LL GET THAT QUEUED UP.

WE WILL ALSO ON THE NIGHT OF THE 16TH BRING TO COUNCIL THE CHARGE OR ACTUALLY, WE MAY DO IT AT THE WORK SESSION BEFORE THAT, BRING THE CHARGES TO THE BOND STUDY COMMITTEE FOR YOU TO REVIEW AND CONFIRM.

SO THAT THAT'S CLEAR TO THE WHEN WE GET THE COMMITTEE STARTED.

SO JOTTED THAT DOWN AS A FOLLOW UP AS WELL.

AND IF IF THERE'S ANY OTHER FEEDBACK, MAYBE ASK TO GO BACK TO SLIDE 75, WHICH HAS THE 315 MILLION ON THERE.

AGAIN, JUST TO GET THAT IN YOUR HEAD.

IF THERE'S ANY OTHER QUESTIONS OR FEEDBACK ON THAT AT THIS POINT, YOU'RE GONNA HAVE TO GO WAY BACK.

WAY BACK.

I KNOW THERE IS.

THERE'S A LOT OF WHAT IFS BUILT INTO THERE RIGHT NOW, ESPECIALLY CONSIDERING THE YOU KNOW, DIRECTION ON WHERE COLA MIGHT GO.

BUT AGAIN, IF COUNCIL HAS ANY OTHER FEEDBACK, QUESTIONS, COMMENTS ON ON WHAT THAT ALLOCATION LOOKS LIKE OR TWO MORE OTHER WAY, OTHER WAY. WRONG DIRECTION.

OKAY. I'M SORRY.

THERE WE GO. ONE MORE.

THERE WE GO. AGAIN, THIS THIS WAS I THINK ITEM EIGHT WAS REALLY.

HEY, LET'S CIRCLE BACK TO THIS.

RIGHT. AND ANY OTHER FEEDBACK QUESTIONS, COMMENTS.

AGAIN, THIS IS NOT EMBLAZONED IN STONE BY ANY MEANS.

THERE'S A LOT OF WHAT IFS HERE.

BUT IF THERE'S ANY OTHER QUESTIONS COMMENTS ON THIS WE'LL TAKE THEM.

OKAY. MAYOR PRO TEM MOORE.

THANK YOU, MR. MAYOR.

SO I JUST WANT TO SUMMARIZE VERY QUICKLY.

MATTER OF FACT, MAYOR, MAYBE YOU SHOULD SUMMARIZE, BUT WHAT? THIS INITIATIVE, THE COLA INITIATIVE, IT SOUNDS LIKE WE SUMMARIZE IT.

WE WERE GOING TO GO FORWARD WITH THE INITIATIVE IN THE WAY OF ALLOWING THE FIRE DEPARTMENT TO BE THE CATALYST OF GOING FORWARD WITH A TAKING IT TO THE COMMUNITY, TAKING IT TO THE PUBLIC.

I DON'T THINK WE HAVE FINALIZED ANYTHING THAT THAT IS JUST THAT THAT IS ONE OF THE, YOU KNOW, YOU TAKE THIS AND AND THE BOND AND, YOU KNOW, THIS IS JUST ONE THAT THAT PART IS JUST ONE OF MANY OPTIONS OR DIRECTIONS THAT THIS COULD GO.

OKAY. BUT NO, I DON'T WE HAVE NOT TAKEN ANY DIRECTION ON WE'RE DOING THIS OR THEY'RE DOING THAT.

OKAY. WE'RE STILL JUST IN THE DISCUSSION.

RIGHT, RIGHT. YEAH. NO DECISION ON THAT.

THANK YOU. COUNCILMEMBER BASS, THANK YOU.

OKAY, SO I'M REALLY GLAD YOU'RE ON THIS SLIDE HERE.

OKAY. SO THIS WOULD BE THIS 315 MILLION DEBT SERVICE.

IT INCLUDES 80 MILLION FOR 30%.

NO CATCH UP COLA. OKAY, SO BUT THEN AS SUGGESTED BY THE THE FIREFIGHTERS ASSOCIATION ASSOCIATION.

THEIR SUGGESTING WAS 70% COLA NO KETCHUP WHICH IS IN HERE ESTIMATED AT 186.

SO IS THERE IS THERE A SCENARIO WHERE LET'S YOU KNOW, LET'S SAY THE 100 MILLION THAT'S MISSING OUT OF THIS

[05:40:09]

SO LET'S LET'S PLAY OUT THE SCENARIO HERE FOR A MINUTE.

THAT WE, WE GET THE PUBLIC INPUT ON COLA IN JULY AND COUNCIL MAKES THE DECISION TO TAKE TO TO PROPOSE AN INCREASE TO THE TAX RATE ON THE OPERATION AND MAINTENANCE SIDE TO PAY FOR A 70% COLA, AS WAS SUGGESTED EARLIER.

WHAT WOULD HAPPEN THERE IS THAT WOULD GO TO THAT'S GOING TO HAVE TO HIT THE NEXT BUDGET CYCLE.

SO IT WOULD GO TO A NOVEMBER 2025 ELECTION, AND ESSENTIALLY IT WOULD MOVE COLA OUT OF THIS CHART TO THE OPERATION AND MAINTENANCE SIDE OF OUR TAX RATE. AND SO ESSENTIALLY WHAT WOULD HAPPEN IS THIS 80 MILLION WOULD BE FREED UP FOR SOMETHING ELSE LONG TERM THAT COULD BE FUNDED BY DEBT.

OKAY. WOULDN'T SPLIT IT.

NO, IT WOULD, IT WOULD, THEY'D GO SEPARATE.

SO THE THE 80 MILLION WOULD BE FREED UP HERE.

THE VOTERS WOULD DECIDE WHAT HAPPENS WITH THE WITH THE TAX RATE FOR COLA.

AND I'LL, I'LL MENTION THERE AND WE'LL GET MORE DETAILS AS WE DIG INTO THIS, BECAUSE THIS IS WITH SB TWO.

THIS IS A THIS IS A NEW PROCESS THAT'S BEEN ESTABLISHED.

AND REALLY THE CITY OF MESQUITE IS THE ONLY ONE THAT I'M AWARE OF THAT'S THAT'S DONE IT.

BUT THE PROPOSITION FOR A COLA ON THE, ON THE BALLOT WOULD COME THROUGH SOMETHING LIKE THIS.

SO WE GET TO BUDGET PROCESS NEXT YEAR AND DECIDE, OKAY, WE'RE GOING TO GO FORWARD WITH THIS 70% NO CATCH UP COLA AND COUNCIL.

WHAT YOU WOULD DO IS ESSENTIALLY ADOPT A BUDGET AND A TAX RATE THAT WOULD PAY FOR THAT COLA AND THAT THAT TAX RATE IS GOING TO GO ABOVE THE THE VOTER APPROVAL RATE.

THAT'S THAT'S BAKED INTO THE CALCULATIONS.

AND SO WE WE ADOPT IT, WE ADOPT THE BUDGET.

AND IT AUTOMATIC DOESN'T AUTOMATICALLY THERE'S SOME WORK INVOLVED.

BUT IT GOES ON THE IT GOES ON THE BALLOT FOR NOVEMBER.

AND SO THAT LANGUAGE WHAT THAT LANGUAGE LOOKS LIKE ON THE BALLOT, THAT'S INFORMATION THAT WE'VE GOT TO DIG INTO AND FIND OUT BECAUSE IT'S NOT IT'S PROBABLY NOT GOING TO SAY, HEY, VOTERS WILL, YOU KNOW, WILL YOU APPROVE A TAX RATE INCREASE FOR A COLA? IT'S PROBABLY GOING TO SAY SOMETHING LIKE, WILL YOU APPROVE A TAX RATE INCREASE FOR OPERATION AND MAINTENANCE OF THE CITY, SOMETHING TO THAT EFFECT.

AND SO THOSE ARE DETAILS THAT WE NEED TO WORK INTO THEIR IMPORTANT DETAILS BECAUSE IT'S, YOU KNOW, IF WE SEND SOMETHING TO THE VOTERS, WE LIKE TO KNOW HOW THAT'S GOING TO LOOK AND READ. SO THOSE ARE THINGS THAT WILL WORK OUT OVER THE NEXT COUPLE OF MONTHS.

SO AS YOU CONSIDER A COLA YOU HAVE THAT IN THE BACK OF YOUR HEAD.

SO ALL THAT TO SAY THAT IF WE GO THAT ROUTE, IT PULLS 80 MILLION OFF OF HERE OR PULLS COLA OFF OF HERE, THE 80 MILLION STAYS AND YOU FIGURE OUT WHAT TO DO WITH THAT. WHICH PLAYS INTO WHAT PERHAPS THE BOND STUDY COMMITTEE IS GOING TO DO AND WHAT CAPACITY THEY HAVE AS WELL.

HOPEFULLY THAT MADE MADE SOME SENSE THERE.

APPRECIATE IT. I MEAN, LIKE I SAY, THESE THESE TWO THINGS ARE, YOU KNOW, THEY'RE EITHER CONVERGING OR THEY'RE NOT.

AND THERE'S THERE'S A BIG IMPACT EITHER WAY.

BUT, YOU KNOW, THAT IS AS, AS WE WORK THROUGH THIS PROCESS OVER THE NEXT MONTHS MONTH, MONTHS THAT, THAT ONE LINE, WE'RE GOING TO HAVE THE ANSWER FOR THAT ONE LINE AT SOME POINT IN THE IN THE RELATIVE FUTURE.

AND SO TO KNOW THAT SO GOOD CLARIFICATION.

ALL RIGHT. SO WE ARE BACK TO THE DISCUSSION.

WE WOULD LIKE TO SAY THE DISCUSSION SORT OF JUST WANDERED INTO ITEM EIGHT.

I THINK THE QUESTION COMES BACK TO I THINK WE'RE ALL IN AGREEMENT THAT WE ARE MOVING FORWARD WITH A BOND STUDY COMMITTEE.

AND WHETHER WHETHER THAT IS THE PREVIOUS THOUGHT OF APPOINTEES OR NOT IS UP TO YOU.

BUT THE APPOINTMENT DATE IS GOING TO BE ON JULY 16TH.

SO YOU EITHER CONFIRM THEM, CONFIRM WHO WAS THERE, RECONFIRM WHO WAS THERE, AND BE READY TO MAKE THOSE APPOINTMENTS ON THE 16TH.

ALRIGHT. AS FAR AS WE WILL BE BRINGING FORWARD THE CHARGE AS WELL AND BRINGING THAT AT THE AT THE 15TH WORK SESSION WE HAVE HERE IS FINE.

AND THEN WE CAN MAKE TWEAKS AT THAT WORK SESSION.

IS THAT WHAT YOU WANT TO DO? YOU KNOW I WAS JUST THINKING ABOUT I MEAN, I HATE I HATE THAT KIND OF A SHORT.

LET'S JUST SAY THERE'S THERE'S EDITING THAT HAS TO GO ON.

I IF WE COULD GET THAT CHARGE EARLIER THAN THAT.

CORRECT. AT LEAST GET GET A DRAFT.

SURE. GET A DRAFT OF IT OUT.

JUST SO AND JUDGE THE CONVERSATIONS AND MEETINGS THAT YOU HAVE WITH THE VARIOUS COUNCIL MEMBERS.

[05:45:01]

AND THEN WE CAN MOVE FOR APPROVAL THE NEXT NIGHT.

THAT WAY WE'RE NOT EDITING ON THE FLY ON THE 15TH.

WE'LL SEND IT OUT IN ADVANCE.

SO YOU'VE GOT PLENTY OF TIME TO LOOK AT THAT, RIGHT? I JUST I DON'T WANT SOMEBODY UP AT MIDNIGHT.

GET, YOU KNOW, AFTER THE AFTER THE WORK SESSION ON THE 15TH, COMPLETELY REWRITING THIS THING, IF THAT, IF THAT'S HOW IT WENT.

SO THE EARLIER THE BETTER.

ALL RIGHT. VERY GOOD.

SO WE WILL CLEAR ITEM EIGHT.

NEXT UP ITEM NINE.

[9. Council will consider, deliberate, and take action on an increase to the Homestead and/or Senior Exemption - City Manager Jud Rex, CFO Matt Watson]

JUDD YOU'RE UP ON THIS ONE.

AND I'M GOING TO TURN IT OVER TO MATT.

ME AGAIN? PERFECT.

SORRY. THAT WAS A TOTAL COP OUT, BUT, HEY, IT WORKED.

GO WITH IT.

THIS IS THIS IS OUR COMMITMENT TO REVISIT EXEMPTIONS.

IF YOU RECALL BACK, I THINK IT WAS THE SECOND MEETING IN SEPTEMBER.

THE ADMINISTRATIVE SERVICES COMMITTEE REPORTED OUT AT A WORK SESSION, AND THE DECISION AT THAT TIME WAS TO NOT MAKE A CHANGE, BUT TO REVISIT IT AFTER WE'VE HAD AN OPPORTUNITY TO PAINT A BIGGER PICTURE OF WHAT'S GOING ON BUDGET WISE AND OUR LONG TERM COMMITMENT WISE AS WELL.

AND SO NOW THAT YOU'VE GOT ALL THAT CONTEXT, THIS IS THIS IS AN OPPORTUNITY.

IF COUNCIL WANTS TO MAKE A CHANGE, THIS REALLY IS THE LAST CHANCE TO DO THAT FOR THIS YEAR.

SO I'LL JUST JUMP RIGHT IN.

SO WE'RE GOING TO TALK ABOUT HOMESTEAD EXEMPTIONS AND SENIOR EXEMPTIONS.

CURRENTLY OUR HOMESTEAD EXEMPTION IS SET AT 10% OF APPRAISED VALUE.

WE INCREASE THIS IN 2021 FROM 8% TO 10%.

SO IT'S BEEN ROUGH, YOU KNOW, THREE YEARS SINCE THERE'S BEEN ANY ADJUSTMENT ON THE HOMESTEAD? THE MINIMUM EXEMPTION IS $5,000.

AND WHAT THAT MEANS IS, IF YOU KNOW, WITH THE PERCENTAGE, IF YOUR HOUSE IS VALUED AT A CERTAIN DOLLAR AMOUNT AND THAT PERCENTAGE DOESN'T GET YOU ANY SAVING, YOU GET 5000 KIND OF RIGHT OFF THE BAT.

THERE'S ABOUT ABOUT 60% OF OUR HOMES ARE HAVE THE RESIDENTIAL HOMESTEAD AND QUALIFY FOR IT.

AND THEN WHEN YOU LOOK AT THE SENIOR EXEMPTION HOW IT IS DIFFERENT.

IT'S A FLAT DOLLAR AMOUNT.

SO WITH THE HOMESTEAD EXEMPTION IT'S PERCENTAGE BASED.

SO THE HIGHER THE VALUE OF YOUR HOME THAT THE HIGHER THE SAVINGS BECAUSE OF THE PERCENTAGE OF YOUR THE VALUE OF YOUR HOME.

WITH SENIORS, IT'S JUST A FLAT DOLLAR AMOUNT.

AND THAT WAS DESIGNED TO HELP PEOPLE WITH LOWER VALUED HOMES RECEIVE A BENEFIT.

THAT'S THE SAME AS SOMEBODY WITH A HIGHER VALUE HOME.

AND IT IS CURRENTLY SET AT $56,000.

AND WE ALSO INCREASED THAT LAST TIME IN FY 21 FROM 51,000 TO 56.

YOU MUST BE AGED 65 OR OLDER, AND ABOUT 25% OF OUR RESIDENTIAL HOMES WITH A HOMESTEAD HAVE THAT, THAT QUALIFY FOR THAT SENIOR EXEMPTION.

AND THEN THIS LAST ONE IS THE BIG ONE.

WE HAVE TO MAKE A DECISION ON THIS BY JULY 1ST TO GET TO DCAD.

SO A SIGNED ORDINANCE SENT TO THEM HOPEFULLY MONDAY OR WHENEVER WE FIND THE TIME WITH THE MAYOR.

BUT A DECISION ON THIS PRETTY MUCH NEEDS TO BE MADE TODAY, UNLESS YOU WANT TO COME BACK TOMORROW, WHICH I ASSUME.

NO. NEVER ASSUME, NEVER ASSUME.

SO TO JUMP RIGHT INTO IT UP THE TOP IS.

SO HOMESTEAD EXEMPTIONS.

WE'RE CURRENTLY AT TEN.

WHAT I'M SHOWING IS THE ANNUAL SAVINGS.

IF WE MOVE TO 11, 12 AND 13 BASED OFF OF DIFFERENT VALUES OF HOME.

SO IF YOU HAVE $100,000 HOME AND WE INCREASE THE HOMESTEAD EXEMPTION TO 11%, YOU WILL GET $6.

IF WE INCREASE IT TO 12%, YOU'LL GET $11 AND SO ON.

AND THEN ON THE IMPACT TO THE CITY SIDE, THE REALLY ONLY TRUE LOSS OF REVENUE COMES ON THE DEBT SERVICE SIDE.

SO REMEMBER WE WERE TALKING ABOUT THE 315, THE 315 MILLION OF CAPACITY.

THIS WOULD COME OFF OF THAT.

SO THE LOSS DEBT SERVICE REVENUE FOR A 1% IS 395,000.

THAT EQUATES TO ABOUT $5.5 MILLION, 790,000 IS ABOUT $11 MILLION AND 3% IS ABOUT 1.18 MILLION FOR ABOUT 16.5 MILLION OF CAPACITY.

WHAT HAPPENS ON THE OPERATIONS SIDE IS IS SOMEWHAT STRANGE.

WHAT HAPPENS IS, IS IT IS A SHIFT OF THE TAX BURDEN BECAUSE OF SB TWO.

THE TAX RATE IS GOING TO ADJUST BASED OFF OF VALUE, AND THEN IT'S GOING TO END REVENUE AND IT'S GOING TO TELL US WHAT OUR TAX RATE IS.

SO WHEN YOU LOOK AT HOMESTEAD WHY I'M SAYING SHIFT IS $330,000.

[05:50:03]

SO THEY WILL RECEIVE THE $6 SAVINGS AND THEN APPLIED TO INDIVIDUALS WHO DO NOT HAVE A HOMESTEAD EXEMPTION.

SO RENTAL PROPERTIES AND COMMERCIAL PROPERTIES.

DOES THAT MAKE SENSE? AND SO I'LL SHOW THAT HERE.

SO HERE'S THAT SHIFT.

SO AGAIN ON THIS SLIDE FOR $100,000 HOME 1% HOMESTEADS GET A $6 SAVINGS.

IT'S SHIFTED TO COMMERCIAL AND RENTAL PROPERTIES.

SO A RENTAL PROPERTY VALUED AT $100 A $1 INCREASE.

VERY MINOR, BUT STILL IT'S A SLIGHT SHIFT.

AND THEN ON THE COMMERCIAL, I'M DOING THESE IN $1 MILLION INCREMENTS BECAUSE MOST OF THE HIT WILL BE ON THE COMMERCIAL SIDE.

THAT'S ABOUT $14.

MOVING ON TO SENIORS, A VERY SIMILAR THING WILL HAPPEN.

SO HERE WE'RE ASSUMING $1,500 INCREMENTS OF OF INCREASE TO THAT EXEMPTION OF 56,000.

SO REALLY WHAT IT IS, IS ABOUT EVERY $1,500, THERE'S ABOUT $10 OF SAVINGS FOR A SENIOR.

AND THEN FOR EVERY $1,500 OF SAVINGS OR EVERY $10 OF SAVINGS FOR A SENIOR, THERE IS A SHIFT TO ALL OTHER INDIVIDUALS WITHIN THE CITY OF ABOUT A DOLLAR.

SO ALL COMMERCIAL PROPERTY, ALL HOMESTEAD, ALL RENTAL PROPERTIES.

AND THEN AS FAR AS IMPACT TO THE CITY PROJECTED CAPACITY.

SO ON THE DEBT SERVICE SIDE, BACK TO THE 315 MILLION.

FOR EVERY 1500, IT'S ABOUT $1.3 MILLION.

SO WE INCREASE THE SENIOR EXEMPTION 1500.

THAT 315 WILL NEED TO BE REDUCED ABOUT $1.3 MILLION.

AND THEN AGAIN, ON THE GENERAL FUND SIDE, IT'S JUST A SHIFT OF THE TAX RATE.

SENIORS WILL SEE A BREAK.

IT'S SHIFTED OVER TO HOMESTEAD AND COMMERCIAL THROUGH AN ADJUSTMENT OF THE TAX RATE.

AND THIS FINAL SLIDE IS REALLY JUST TO SHOW IN TOTALITY OF OF ALL THE CHANGES THAT HAVE OCCURRED, MOSTLY RELATED TO SCHOOL TAXES OVER THE YEARS IN THE LEGISLATION. AND AND IT'S AND ALSO FROM THE COUNTY INCREASING THEIR HOMESTEADS.

BUT OVER THE LAST SINCE 2020, THE AVERAGE TAX BILL FOR A SENIOR IN GARLAND SHOULD HAVE GONE DOWN ABOUT 30% CUMULATIVELY.

NONE OF THAT HAD TO DO WITH US MAKING ANY ADJUSTMENTS TO OURS OTHER THAN SB TWO LOWERING OUR TAX RATE.

BIG MAJORITY OF THIS IS RELATED TO SENATE BILL TWO, WHICH HAPPENS TO BE THE SAME NAME, WHICH IS GOING TO BE CONFUSING.

BUT IN 2023, SENATE BILL TWO SUBSTANTIALLY CHANGED THE WAY SCHOOL DISTRICTS RECEIVE THEIR MONEY FROM THE FROM PROPERTY TAXES.

AND THE BIGGEST CHANGE WAS SCHOOL DISTRICTS HOMESTEAD EXEMPTION, MOVING ALL THE WAY UP TO 100,000.

SO SENIORS HAVE SEEN BREAKS FROM THE REST OF THE TAXING ENTITIES AROUND US.

AND THAT'S WHAT THIS IS QUANTIFYING.

AND WITH THAT, I'LL TURN IT OVER FOR ANY QUESTIONS.

DISCUSSION. OKAY.

COUNCIL MEMBER HEDRICK THIS ONE THEORETICAL QUESTION.

SO IF YOU DID SOMETHING SENIOR EXEMPTION, IS THERE A SCENARIO WHERE IT SHIFTS THAT TAX BURDEN TO A HOMESTEAD BUT THAT SENIORS ALSO HOMESTEAD SO THEY GET NO NET BENEFIT.

YEAH. SO WHAT THIS THAT'S TAKEN THIS INTO ACCOUNT.

SO REALLY WHAT YOU'RE SEEING IN THE TEN IF IF THERE THAT SHIFTS HAPPENING TO THEM TOO.

SO THIS WOULD HAVE BEEN $11 LET'S SAY.

OKAY. SO WITHOUT THAT SHIFT CORRECT OKAY.

BECAUSE IT STILL JUST LESSENS THEIR IT LESSENS WHAT THEY'RE RECEIVING.

OKAY. THANK YOU. THANK YOU.

YEAH IT'S CIRCULAR RIGHT.

IT'S ALL TIED TOGETHER, RIGHT? YEAH, YEAH. OKAY.

ANY ADDITIONAL? NO, SIR. THANK YOU.

ANY ADDITIONAL QUESTIONS OR.

SUGGESTIONS ON THIS TOPIC? COUNCILMEMBER WILLIAMS? YES, YES, FOR A SUGGESTION.

I'VE GOT ONE. I, I SUPPORT THE THE 2%.

YOU HAD A PREVIOUS CHART.

LAST INCREASE WAS WAS UP TO TEN.

RIGHT? MATT. CORRECT.

RIGHT. OKAY.

AND THE TWO AND SAY AGAIN MATT I'M LOOKING AT IT.

2% THE SHIFT.

WALK THROUGH THE SHIFT AGAIN FOR ME.

SO ON THE SO ON THE 2%.

LET'S USE $200,000 HOME, BECAUSE THAT'S CLOSE TO THE AVERAGE $2,000 HOME WITH THE 2% INCREASE IN THEIR HOME.

SO WE'LL SEE $23.

THE CITY, THE CITY REVENUE IMPACTS PROJECTED CAPACITY.

SO BACK TO THAT 315.

YOU WOULD LOSE ABOUT 11 MILLION OF THAT 315 DUE TO LOST DEBT SERVICE REVENUE.

[05:55:06]

IT WOULD BE APPLIED TO RENTAL PROPERTY.

SO INDIVIDUALS THAT DO NOT HAVE A HOMESTEAD EXEMPTION WILL SEE A $6 INCREASE.

AND THEN BASED OFF OF VALUATIONS OF COMMERCIAL, EVERY MILLION DOLLARS IS ABOUT 29 BUCKS OF INCREASED.

AND WHEN YOU SAY SHIFTED TO RENTAL PROPERTIES, WHO'S WHO'S NAME IS THE BILL.

AND THE OWNER RIGHT OF THAT RENTAL PROPERTY.

RIGHT. CORRECT.

OKAY. ALL RIGHT.

JUST SO BASICALLY EVERYONE'S TAX RATE GOES UP SLIGHTLY.

IT'S JUST HOMESTEADS GETTING AN EXTRA 2% REMOVED OFF THEIR APPRAISAL.

SO THEY'LL SEE A SAVINGS.

AND THEN THAT SLIGHT INCREASE FOR EVERYONE ELSE WILL PICK UP THE DIFFERENCE OKAY.

ALL RIGHT. WELL THAT CAN SUPPORT THE 2% BECAUSE THE FEEDBACK THAT I'VE GOTTEN EVERY TIME WE'VE PASSED A BUDGET IS THAT EVERY, EVERY OTHER TAXING ENTITY AROUND US HAS GIVEN SOME KIND OF BREAK, EXCEPT THE CITY OF GARLAND.

THAT'S WHAT I THAT'S WHAT I CONTINUE TO HEAR.

SO THAT'S THAT'S.

YES. FOR RECOMMENDATION I WOULD RECOMMEND 2%.

THANK YOU. MAYOR. SO YOUR RECOMMENDATION IS FOR THE HOMESTEAD EXEMPTION TO GO FROM 10% TO 12%.

BUT YOU ARE NOT SUGGESTING ANY CHANGE TO THE SENIOR EXEMPTION.

NO. OKAY.

JUST MAKING SURE I HAVE ALL THIS AT SOME POINT.

I'M GOING TO HAVE TO. YEAH.

AT SOME POINT I'M GOING TO NEED A PIE CHART OR SOMETHING AS WELL.

COUNCIL MEMBER. BASS. THANK YOU SIR.

ACTUALLY. OKAY. MY MY SENTIMENT IS PROBABLY THE OPPOSITE OF BJ'S HERE.

SO I SUPPORT NO CHANGE TO THE HOMESTEAD EXEMPTION.

AND HERE'S THE REASON WHY A HOMESTEAD EXEMPTION IS ON THERE.

BECAUSE YOU'RE LIVING THERE AS YOUR PRIMARY RESIDENCE.

IS THAT MATT POINTED OUT.

IF YOU DON'T HAVE A HOMESTEAD EXEMPTION, THAT MEANS YOU'RE EITHER COMMERCIAL OR YOU'RE RENTING.

AND I SAY YOU'RE RENTING BECAUSE WHETHER IT BE A MULTIFAMILY, WHETHER IT BE A A SINGLE FAMILY HOME THAT YOU'RE RENTING YOU'RE STILL GOING TO BE PAYING FOR THAT, THAT INCREASE, YOU'RE GOING TO BE PAYING FOR IT THROUGH AN INCREASED RENT.

AND IF YOU LIVE IN A MULTIFAMILY, IT ACTUALLY COULD COME OUT TO NET BE MORE THAN YOU IF THAT MULTIFAMILY HAS A PROFIT MARGIN THAT THEY'RE MAINTAINING, IF THEIR BILL GOES UP BY $10, THEN YOUR RENT IS GOING TO GO UP BY $12 SO THEY CAN MAINTAIN THEIR THEIR PROFIT MARGIN THEY REQUIRE.

SO IT ACTUALLY THE MORE YOU MOVE THE BURDEN FROM THE, FROM THE HOMESTEAD EXEMPTION SIDE, THE MORE YOU REMOVE THAT BURDEN TO THE COMMERCIAL SIDE, THE MORE IT HURTS THOSE WHO WHO YOU KNOW ARE TRANSIENT, RIGHT? THE ONES LOWER IN THE SOCIOECONOMIC LADDER THAT ARE RENTING.

SO I DON'T SUPPORT ANY CHANGE TO THE HOMESTEAD EXEMPTION AT ALL.

HOWEVER, ON THE SENIOR EXEMPTION SIDE I DO I DO SUPPORT A CHANGE.

AND WHATEVER THAT NUMBER IS, I MEAN, WHETHER IT BE, YOU KNOW, A THOUSAND, 3000 SOMEWHERE AROUND THERE, I PROBABLY WOULD JUST SAY I'D SUPPORT THE 3000.

SO IT'S KIND OF SPLIT THE DIFFERENCE OF THE SCENARIOS HERE.

OKAY, THAT'S ALL I GOT.

THANK YOU. OKAY, SO YOU ARE SUGGESTING NO CHANGE IN HOMESTEAD, BUT A $3,000 INCREASE IN THE SENIOR EXEMPTION, WHICH WOULD BRING THAT TO 59,000.

YES, SIR. OKAY.

WE'LL SWING BACK AROUND TO THAT.

COUNCIL MEMBER. OTT. WELL, I'M I'M LEANING MORE TOWARDS WHAT COUNCILMAN BASS IS SAYING.

NO CHANGE ON THE HOMESTEAD EXEMPTION FOR THE SAME REASONS.

AND ALSO FOR THE DEBT CAPACITY CHANGE THAT WOULD OCCUR IF WE.

I MEAN, LOOK AT WHAT WE'RE TRYING TO DO AND BY LOWERING OUR DEBT CAPACITY BY $11 MILLION TO SAVE SOMEONE $23 A YEAR, JUST IT JUST DOESN'T MAKE SENSE TO ME AS FAR AS THE SENIOR EXEMPTION.

REALISTICALLY, I WOULD I WOULDN'T CHANGE IT EITHER.

I WOULD LEAVE IT THE SAME.

SO THAT'S WHAT I WOULD.

THAT'S WHAT I WOULD PREFER.

THANK YOU. ALL RIGHT.

AND DEPUTY MAYOR PRO TEM LUCK.

I'M NOT IN FAVOR OF CHANGING EITHER THE SENIOR OR THE HOMESTEAD EXEMPTION.

I JUST DON'T THINK THAT THE NUMBERS MAKE SENSE.

IT'S TOO LITTLE BANG FOR YOUR BUCK, IN MY OPINION.

IF WE'RE GOING TO DO A SENIOR EXEMPTION, WE NEED TO DO A SENIOR EXEMPTION.

THAT REALLY MAKES A BIG DIFFERENCE IN SOMEONE'S LIFE.

YOU'RE LOOKING AT A $200,000 HOUSE AND THEY'RE SAVING $20 A YEAR.

[06:00:01]

AND I DON'T KNOW THAT THE THAT DECREASING OUR DEBT CAPACITY BY 2.7 MILLION IS WORTH THAT $20 A YEAR.

OKAY. THANK YOU. VERY GOOD.

ALL RIGHT. ANY FURTHER SUGGESTIONS BEFORE WE WE'RE GOING TO SWING BACK AROUND AND GOING TO KIND OF COME TO TRY TO COME TO SOME CONSENSUS VOTES ON THIS.

ACTION. LET'S SEE WHAT YOU'VE DONE.

WELL YOU'RE NOW RIGHT NOW YOU'RE CURRENTLY IN THE SYSTEM AS SEAT 11.

ALL RIGHT. YOU'LL ACTUALLY NOT DO CONSENSUS ON THESE.

YEAH. WE'RE GOING TO ACTUALLY DO A MOTION.

OKAY. AND ACTUALLY TAKE A VOTE.

ALL RIGHT. VERY GOOD.

OH. COUNCIL MEMBER.

HEDRICK MOTION.

I AM LOOKING FOR.

NO, I'M PRETTY MUCH HAD ALL THE CONVERSATION I COULD HANDLE TODAY.

I WOULD CERTAINLY ENTERTAIN A MOTION I MOVE THAT WE MAKE NO CHANGE TO EITHER RATE.

I HAVE A MOTION BY COUNCIL MEMBER HEDRICK AND A SECOND BY DEPUTY MAYOR PRO TEM LUCHT TO MAKE NO CHANGES TO THE HOMESTEAD EXEMPTION OR SENIOR EXEMPTION.

I DON'T KNOW THAT OUR VOTING SYSTEM IS IS WE'LL HAVE TO DO BY HAND BECAUSE I THINK WE'RE HAVING SOME ISSUES THERE.

I'M COMING BACK TO COUNCIL MEMBER BASE.

YES, SIR. I'D LIKE TO VOTE ON THESE SEPARATELY, PLEASE.

IS THE MAKER OF THE MOTION AND THE SECOND.

COUNCILOR BASS IS SUGGESTING THAT.

OR THAT WE VOTE ON THESE TWO ITEMS SEPARATELY.

I'LL MAKE AN AMENDED MOTION.

I'LL SECOND THAT MOTION.

THAT'S NOT HELPFUL. YEAH.

NO. NO.

EXCEPT A FRIENDLY. YEAH.

THAT'S THAT. THIS IS.

YEAH. NO.

YOU NEVER ACCEPT HIS AMENDMENT.

I DON'T THINK HE IS ACCEPTING OF THE AMENDMENT TO GO RIGHT.

AND THEN AND THAT STANDS OKAY.

ALL RIGHT. ARE WE CONFUSED ENOUGH ALREADY FOR THE DAY? ALL RIGHT. AGAIN MOTION IS FOR NO CHANGE TO HOMESTEAD OR SENIOR.

AND AGAIN, THE MOTION IS FOR NO CHANGE.

ALL IN FAVOR? THAT IS ONE, TWO, THREE, FOUR.

SO WE HAVE THAT MOTION PREVAILS WITH COUNCIL, MEMBERS, DUTTON, BASS AND MOORE IN OPPOSITION.

SO NO CHANGE.

AND I THOUGHT I SAW YOUR HAND UP NOW.

NO IT WAS.

YEAH IT WAS. YEAH I HAD FIVE.

OKAY. ALL RIGHT. SORRY.

I CAN ONLY SEE OUT OF THE CORNER OF MY EYE.

ALL RIGHT, THERE WE GO.

AND THAT WAS THE LAST ITEM ON TODAY'S AGENDA.

SO AT 318, WE ARE ADJOURNED.

* This transcript was compiled from uncorrected Closed Captioning.