* This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting.
          [ Call Meeting to Order]
          [00:00:12]
          I PLEDGE ALLEGIANCE TO THE FLAG OF THE UNITED STATES, FOR WHICH IT STANDS ONE NATION UNDER GOD, INDIVISIBLE WITH LIBERTY AND JUSTICE FOR, UH, INTERIM CITY MANAGER. 
           COMMENTS. 
          I DON'T HAVE ANY COMMENT EITHER. 
          EVERYBODY'S TRYING TO FEED IT THE RED CARD, RIGHT? LIKE, UH, ANYBODY WANT TO SPEAK BEFORE WE START? GOOD COMMENT OR A MONTH? OR I HAVE TO PERCEIVE NO COMMENTS ON THE CAR. 
          NO, SIR. 
          ALL RIGHT. 
          [1.  Hold a Public Hearing, Present, and Discuss the Town of Addison's Proposed Property Tax Rate for the Fiscal Year Commencing October 1, 2022 and Ending September 30, 2023.]
AND THE FIRST ONE, THE  PROPOSED PROBABLY PAST FOR THE FISCAL YEAR COMMENCING OCTOBER 1ST, 2022, AND ENDING SEPTEMBER 30TH, 2023, STEVEN. 
          GREAT. 
          THANK YOU MAYOR. 
          YOU READ THE SECOND ONE. 
          WE STILL, SO YOU CAN CONTINUE YOUR PRESENTATION. 
          THEN WE APPROVE ONE AT A TIME. 
          OKAY. 
          ITEM NUMBER TWO, HOLD A PUBLIC HEARING. 
          PRESENT, DISCUSS THE TOP ADDISON'S ANNUAL BUDGET FOR THE FISCAL YEAR. 
          COMMENCING OCTOBER 1ST, 2022 AND ENDING SEPTEMBER 30TH, 2023. 
          GO AHEAD, STEVEN. 
          I THINK LIKE MY CHIEF FINANCIAL OFFICER AND THE FIRST ITEM FOR YOU THIS EVENING IS THE FIRST PUBLIC HEARING REGARDING THE PROPERTY TAX RATE FOR FISCAL YEAR 2023. 
          AND JUST A REMINDER OF WHAT THIS PROPERTY TAX RATE APPROVAL PROCESS LOOKS LIKE. 
          UH, SO BACK ON JULY 25TH, THE TOWN RECEIVED CERTIFIED PROPERTY VALUES FROM THE DALLAS CENTRAL APPRAISAL DISTRICT. 
          UH, WE, UM, UH, DISCUSSED THE TAX RATES OF THE TUESDAY, AUGUST 23RD, UH, CITY COUNCIL MEETING. 
          UM, AND THAT WAS A RATE THAT, UH, COUNCIL DECIDED TO PROPOSE, UH, FOR THE PROPERTY TAXES THIS YEAR. 
          UH, SO BASED ON THAT DIRECTION, WE POSTED THOSE PROPERTY TAX RATES. 
          UH, THEN, THEN THAT, UH, FRIDAY, AUGUST 26, UH, WE PUBLISH THE NOTICE OF THE PUBLIC HEARING THAT WE'RE AT TONIGHT AND THE ONE THAT WILL OCCUR, UH, NEXT TUESDAY. 
          UH, THEN WE'RE HERE TONIGHT, UH, FOR THE FIRST PUBLIC HEARING ON THE TAX RATE AND BUDGET. 
          UH, NEXT TUESDAY ON SEPTEMBER 13TH, WE'LL HAVE THE SECOND PUBLIC HEARING ON THE TAX RATE AND BUDGET. 
          UH, ON THAT SAME MEETING, THERE WILL BE, UH, THE ADOPTION PROPOSED FOR THE TAX RATE AND BUDGET AS WELL. 
          AND THEN ON OCTOBER REMAINING FOR THIS PROCESS AND THEN LOOKING AT WHAT OUR PROPERTY TAX VALUES AND A PROPOSED TAX RATE IS FOR A 20, 23 COMPARED TO THE CURRENT FISCAL YEAR. 
          UH, SO CERTIFIED TAXABLE VALUES, UH, 5.6, $3 BILLION. 
          THAT'S AN INCREASE FROM $5.08 BILLION IN FISCAL YEAR 2022. 
          AND THEN THE PROPOSED PROPERTY TAX RATE IS 60.98 TO 2 CENTS A. 
          THAT IS A DECREASE FROM THE CURRENT PROPERTY TAX RATE FOR FISCAL YEAR 2022 OF 61.47 CENTS. 
          SO IT'S ABOUT A HALF A CENT, A REDUCTION FROM THE CURRENT PROPERTY TAX RATE. 
          THEN JUST, JUST ANOTHER VIEW OF THE PROPERTY TAX RATES. 
          SO FISCAL YEAR 2022, YOU CAN SEE, UH, THE NO NEW REVENUE RATE, THE VOTER APPROVAL RATE AND THE ADOPTED OR PROPOSED RATE. 
          UH, SO AGAIN, THE NO NEW REVENUE RATE IS THE RATE THAT WE GENERATE THE SAME AMOUNT OF REVENUE FROM THE SAME PROPERTIES. 
          UH, THE CHANGE FROM FISCAL YEAR 2022 TO 2023, UH, THAT RATE WENT UP ABOUT ONE AND A HALF CENTS, UH, IN FISCAL YEAR 2023. 
          UH, THE VOTER APPROVAL RATE IS THE MAXIMUM RATE THAT COUNCIL, UH, CAN APPROVE WITHOUT, UH, HAVING THAT APPROVED BY VOTERS. 
          UH, SO THAT RATE INCREASED BY ABOUT ONE PENNY, UH, IN THIS FISCAL YEAR UP TO 68.90 CENTS. 
          AND THEN THE PROPOSED TAX RATE AT 60.98 TO 2 CENTS. 
          AGAIN, THAT'S ABOUT A HALF A CENT REDUCTION FROM THE ADOPTED RATE THAT WAS ADOPTED IN FISCAL YEAR 2022. 
          THEY'RE LOOKING AT WHAT THAT PROPERTY TAX RATE WOULD GENERATE FOR THE GENERAL FUND. 
          WE'RE LOOKING AT ABOUT $22,560,000 IN PROPERTY TAX REVENUE, UH, FOR THE ECONOMIC DEVELOPMENT FUND, WE'RE LOOKING AT ABOUT 1 MILLION, $288,000. 
          THE INFRASTRUCTURE INVESTMENT FUND, WE'RE LOOKING AT $337,000. 
          AND THEN, UH, IN THE DEBT SERVICE FUND, WE'RE LOOKING AT 8 MILLION, $951,000. 
          UH, AND IN TOTAL FOR ALL OF THOSE FUNDS, 33 MILLION, $137,000 
          [00:05:01]
IN PROPERTY TAX REVENUE. 
          AND THEN LOOKING AT THE LAST 10 YEARS OF PROPERTY TAX RATES, YOU CAN SEE THE OVERALL TAX RATES BEEN FAIRLY CONSISTENT OVER THE LAST 10 YEARS. 
          THESE ARE AROUND IT TO THE NEAREST PENNY, BUT, UM, JUST UNDER 61 CENTS IS THE TOTAL TAX RATE, UH, FOR, UH, OUR DEBT SERVICE THAT COMES OUT TO ABOUT 16 CENTS AND FOR OPERATIONS AND MAINTENANCE, WHICH IS THE BLUE BAR, UH, THAT COMES OUT TO ABOUT 45 CENTS FOR FISCAL YEAR 2023. 
          AND THEN LOOKING AT HOW ADDISON COMPARES TO COMPARISON CITIES, AS FAR AS OVERALL TAX RATE GOES, YOU CAN SEE, UH, HOW WE COMPARE, UH, THE MEDIAN AND THE MEAN FOR THESE CITIES, UH, IS ALSO LISTED. 
          AND, UH, ONE THING I'LL MENTION ABOUT THESE CITIES IS THAT SOME OF THEM DO NOT OFFER A HOMESTEAD EXEMPTION AT ALL. 
          SOME OF THEM OFFER A FAR LOWER HOMESTEAD EXEMPTION THAN ADDISON DOES. 
          UH, SO ADDISON HAS THE MAXIMUM HOMESTEAD EXEMPTION AT 20%. 
          UM, SO, AND THERE'S JUST A FEW ON THIS LIST. 
          I DON'T KNOW, OFF THE TOP OF MY HEAD THAT OFFER THAT SAME LEVEL OF, UH, UH, DEDUCTION. 
          UH, THIS IS THE SAME VIEW, BUT OF, UH, CITIES WITHIN DALLAS COUNTY. 
          UH, YOU CAN SEE, UH, WHERE ADDISON, UH, UH, IS LISTED THERE AGAIN, THE MEDIAN AND MEAN IS LISTED FOR ALL OF THESE CITIES AS WELL. 
          AND, UH, JUST ONE OTHER NOTE THAT ALL OF THE OTHER CITIES LISTED THIS AS THEIR CURRENT YEAR TAX RATE, NOT THEIR PROPOSED TAX RATE, BECAUSE THEY'RE GOING THROUGH THE SAME PROCESS WE ARE. 
          SO WE DON'T YET KNOW WHAT THEIR PROPOSED OR ADOPT PROPERTY TAX RATE WOULD BE. 
          AND THEN LOOKING AT IMPACT ON AVERAGE HOMEOWNER. 
          UH, SO THE AVERAGE TAXABLE VALUE OF A SINGLE FAMILY HOME AND ADDISON THAT WAS CURRENTLY $382,732. 
          THAT'S AN INCREASE OF ABOUT A LITTLE OVER $35,000 FROM, UH, FISCAL YEAR 2022, UH, THE AVERAGE TAX BILL, UH, THEN BASED ON THAT 60.9822 TAX RATE WOULD BE ABOUT $2,334, WHICH IS ABOUT $197 AND 57 CENTS MORE THAN THE PREVIOUS YEAR OR ABOUT $16 AND 46 CENTS PER MONTH. 
          AND THEN THIS IS A VIEW OF WHAT OVERALL THE COMBINED TAX RATE FOR, UH, ADDISON WOULD BE. 
          UH, AND AGAIN, THE OTHER ENTITIES LISTED ON THIS CHART, UH, THIS IS THEIR CURRENT TAX RATE. 
          SO WE DON'T YET KNOW WHAT THEIR PROPOSED TAX RATES WOULD BE. 
          UH, BUT LOOKING AT WHAT THE OVERALL TAX RATE WOULD BE FOR ADDISON IS ABOUT $2 AND 47 CENTS, UH, ALL IN WITH, UH, ALL OF THE, THAT INCLUDES THE SCHOOL, THE COUNTY, UH, HOSPITAL, UM, COMMUNITY COLLEGE DISTRICT, UM, EVERYTHING THAT IS INCLUDED IN, UH, DOUBT LIVING IN DALLAS COUNTY. 
          AND WITH THAT, I'LL ANSWER ANY QUESTION THAT YOU HAVE ABOUT THE PROPERTY TAX RATE, ANY QUESTION. 
          SO THEN WHAT WE'VE ALREADY GONE THROUGH MANY TIMES WORK SESSION. 
          SO ALSO EVERYBODY AGREED WITH THE, UM, NON-PROFIT CONTRIBUTION, BUT ALSO, UH, THE ANNUAL REPEATING 30% COLA FOR THE STAFF. 
          SO IF YOU HAVE ANY OTHER QUESTIONS, JUST PLEASE SAY, YEAH, IF I OPENED UP FOR POVERTY DURING, 
          [2.  Hold a Public Hearing, Present, and Discuss the Town of Addison's Annual Budget for the Fiscal Year Commencing October 1, 2022 and Ending September 30, 2023.  ]
ALL RIGHT, UH, LADIES AND GENTLEMEN, THIS ITEM IS LISTED AS THE PUBLIC HEARING. 
          IF ANYONE IN PUBLIC WISH TO SPEAK ON THIS ITEM, PLEASE DO. 
          SO THAT'S THE ONE IN PUBLIC WISH TO SPEAK ON THIS ITEM. 
          I HEREBY CLOSE THE POVERTY HEARINGS. 
          DO I HAVE MOTION A SECOND? INFORMATIONAL? YEAH, THIS IS, YEAH. 
          THERE'S NO ACTION ON, WELL, IT JUST POVERTY HERE. 
          ALL RIGHT. 
          JUST GO INTO THE SECOND. 
          GREAT, THANK YOU. 
          MAYOR COUNCIL AND STEVEN GLICKMAN, CHIEF FINANCIAL OFFICER P, AND THIS IS THE FIRST PUBLIC HEARING FOR OUR BUDGET FOR FISCAL YEAR 2023. 
          AND STARTING OUT WITH A STAFFING SUMMER, YOU CAN SEE OVER THE LAST FIVE YEARS, HOW, UH, HOW THE TOWN HAS BEEN STAFFED, UH, THROUGH THE VARIOUS FUNDS. 
          THE PROPOSED BUDGET INCLUDES 306, UH, FULL-TIME EQUIVALENT EMPLOYEES, WHICH IS AN INCREASE FROM 300.8, UH, IN THE PREVIOUS YEAR OR 5.2, UH, ADDITIONAL, UH, FULL-TIME EQUIVALENT EMPLOYEES ADDED, UH, FOR FISCAL YEAR 2023. 
          AND THIS IS A DIFFERENT VIEW YOU CAN SEE OVER THE LAST 10 YEARS, UM, HOW THIS IS HOW THIS HAS GONE. 
          AND IF YOU LOOK AT 2017 AND YOU'LL SEE, THERE'S A, THERE'S A BIG DECREASE. 
          WELL, AT ONE POINT IN THERE, THE TOWN BECAME A MEMBER OF THE NORTH TEXAS EMERGENCY COMMUNICATION CENTER. 
          SO THOSE EMPLOYEES 
          [00:10:01]
THAT WERE, UH, DISPATCHERS, THEY WENT AND BECAME EMPLOYEES OVER THERE. 
          SO WE'RE STILL PAYING FOR THAT. 
          THEY'RE JUST NOT, NOT EMPLOYEES. 
          AND THEN I IN FISCAL YEAR 2021, THAT'S WHEN THE AIRPORT STAFF, UH, BECAME TOWN EMPLOYEES RATHER THAN CONTRACTORS. 
          SO THAT ACCOUNTS FOR THE MAJORITY OF THAT JUMP THERE, BUT AGAIN, IN FISCAL YEAR, TWENTY TWENTY THREE, THREE HUNDRED AND SIX, UH, FULL-TIME EQUIVALENT EMPLOYEES ARE, UH, IN THE PROPOSED BUDGET. 
          AND THIS IS A MORE GRANUAL, UH, VIEW OF, UH, WHAT, WHAT THE DEPARTMENT CHANGES HAVE OVER THE LAST 10 YEARS AND, AND FUND CHANGES. 
          SO, UM, UH, GENERAL FUND OVERALL GOING UP ABOUT 2.5 FULL-TIME EQUIVALENT EMPLOYEES, UH, HOTEL FUND 1.5 FOR FISCAL YEAR 2023, UH, THE AIRPORT FUND AT 1.2. 
          SO THAT ACCOUNTS FOR THE CHANGES WITH THE STAFFING FOR FISCAL YEAR 2023, AND THEN LOOKING AT THE OVERALL BUDGET FOR THE GENERAL FUND, THE OUTSIDE RING IS THE REVENUE AND THEN THE INSIDE RING, OR IS WHERE THE FUNDING GOES. 
          SO THE, THE MAJOR REVENUE SOURCES PROPERTY TAX AT 22.4, $1 MILLION, AND THEN WE HAVE SALES TAX AT $14.4 MILLION, AND THEN WE HAVE, UH, OTHER TAXES, FRANCHISE FEES, LICENSES, AND PERMITS, AND THEN FINES AND PENALTIES THAT MAKE UP THE REMAINING, UH, REVENUE SOURCES, UH, FOR THE GENERAL FUND. 
          UH, THE MAJORITY OF THAT MONEY GOES TO PUBLIC SAFETY. 
          WE HAVE POLICE, WHICH INCLUDES, UM, THE NORTH TEXAS EMERGENCY COMMUNICATIONS CENTER AT $13.13 MILLION. 
          THEN WE HAVE THE FIRE DEPARTMENT AT $9.91 MILLION. 
          SO YOU CAN SEE THAT THOSE PRETTY MUCH LINE UP WITH THE PROPERTY TAX SECTION. 
          SO YOU CAN, YOU CAN PRETTY MUCH EQUATE THE PROPERTY TAXES, PAY FOR PUBLIC SAFETY. 
          UM, AND THEN WE HAVE PARKS AND RECREATION, 6.6, $6 MILLION, UH, GENERAL GOVERNMENT AT 10.2, $6 MILLION IN GENERAL, GOVERNMENT IS ADMINISTRATION FINANCE, HUMAN RESOURCES, UM, UH, GENERAL SERVICES, UH, INFORMATION TECHNOLOGY AND THOSE TYPES OF DEPARTMENTS. 
          UH, THEN WE HAVE STREETS AT 2.2, $4 MILLION AND THEN DEVELOPMENT SERVICES AT 1.9, $8 MILLION. 
          AND THEN THIS IS A VIEW OF A COMPARISON FROM FISCAL YEAR 2022 TO FISCAL YEAR 2023. 
          UH, SO TOTAL REVENUE, UM, THE PROPOSED BUDGET, UH, INCLUDES AN INCREASE OF 3.4, $1 MILLION IN REVENUE SOURCES. 
          UM, THE MAJORITY OF THAT COMING FROM PROPERTY TAXES AT 2.37 MILLION, AND THEN, UH, SALES TAXES AT $0.7 MILLION INCREASE ON THE EXPENSE SIDE, UH, INCREASE OF 3.4, $4 MILLION. 
          AND THEN OVERALL TOTAL REVENUE IS EQUAL TO A TOTAL EXPENSES, UH, FOR FISCAL YEAR 2023. 
          STEVEN, WAS THAT A INCREASE OF THE SALES TAX EXPECTED OR TARGET TO COMMENT ON THAT? IT'S MORE THAT WE HAVE GREATLY EXCEEDED WHAT WE BUDGETED. 
          SO WE'VE KEPT THAT $13.7 MILLION SALES TAX BUDGET FOR QUITE A LONG TIME, EXCEPT FOR FISCAL YEAR 2021, BECAUSE OF COVID. 
          AND EVEN DURING THAT YEAR, UM, WE EXCEEDED IT DRASTICALLY. 
          SO EVEN DURING THE COVID YEARS, WE WERE FAR BEYOND THE 13.7, WHICH HAD BEEN BUDGETED IN PREVIOUS YEARS. 
          SO IT'S MORE OF A, MORE OF JUST LOOKING AT TREND AND, AND, YOU KNOW, WANTING TO KIND OF TIGHTEN THAT, TIGHTEN THAT UP A LITTLE BIT TO WHAT'S ACTUALLY HAPPENING. 
          THANK YOU. 
          AND THEN HERE'S A BAR VIEW OF, UH, GENERAL FUND REVENUE AT $44.17 MILLION, UH, COMPARED TO, UH, THE BLUE BARS, WHICH ARE, UH, FISCAL YEAR 2021 ACTUALS. 
          UH, THE GREEN BARS ARE WHAT WE BUDGETED FOR FISCAL YEAR 2022, AND THEN THE PURPLE BARS ARE WHAT IS PROPOSED IN THE FISCAL YEAR 2023 BUDGET. 
          SO AGAIN, YOU CAN SEE, EVEN IN FISCAL YEAR 2021, THE SALES TAX EXCEEDED WHAT WE'RE PROPOSING FOR FISCAL YEAR 2023, AND THAT'S MAYBE THE WORST YEAR AS FAR AS SALES TAX RELATED TO, TO COVID WENT. 
          SO, SO IT'S STILL A FAIRLY CONSERVATIVE SALES TAX NUMBER. 
          UM, AGAIN, YOU CAN SEE AN AD VALOREM TAXES, UH, THE OTHER SOURCES, UH, AS FAR AS REVENUE GO MIXED BEVERAGE FRANCHISE FEES LICENSED, AND THE PERMIT SERVICE FEES ARE GENERALLY, UH, PROJECTED TO STAY, UH, STABLE, UH, FOR THE PROPOSED BUDGET, UH, THEN LOOKING AT THE PROPOSED EXPENSES AND THIS IS, UH, BY EXPENSE TYPE. 
          SO THE MAJORITY BEING A SERVICE ORGANIZATION, UH, THE MAJORITY OF THE COST IS RELATED TO PERSONNEL SERVICES. 
          UM, SO 65.2% OF THAT 44.17, UH, GOES TO, UH, PERSONNEL. 
          UH, THEN WE HAVE CONTRACTUAL SERVICES AT 19.1% MAINTENANCE AT 8.2%, A CAPITAL REPLACEMENT 
          [00:15:01]
OR LEASE AT 3.6%, UH, SUPPLIES AT 3.5% AND THEN CAPITAL OUTLAY AT 0.4%. 
          AND MOVING ON TO THE SELF-FUNDED PROJECTS FUND. 
          AND THIS FUND IS GENERALLY BEEN FUNDED BY TRANSFER TRANSFERS OF EXCESS REVENUE OR SAVINGS, UH, RELATED TO EXPENSES, UH, FROM THE GENERAL FUND TO FUND, UH, ONE TIME, UH, PROJECTS IN FUTURE YEARS. 
          SO YOU CAN SEE OUR BEGINNING FUND BALANCES AS THEY HAVE GONE FROM FISCAL YEAR 2021, UH, THROUGH THE PROPOSED BUDGET. 
          UH, THE REVENUE AGAIN, REPRESENTS THOSE TRANSFERS FROM THE GENERAL FUND FROM SAVINGS OR EXCESS REVENUE. 
          AND THEN YOU CAN SEE THE TOTAL EXPENSES, WHICH ARE BUDGETED, UH, THOSE ONE-TIME BUDGET EXPENSES. 
          SO OVERALL, UH, THIS FUND IS, UH, PROPOSED TO BEGIN, UH, THE BUDGET YEAR WITH ABOUT 4.8, $2 MILLION. 
          UM, THERE'S NO REVENUE BUDGETED OTHER THAN INTEREST EARNINGS. 
          UM, BUT THERE PROBABLY WILL BE SOME, UH, UH, REVENUE THAT COMES IN AS THERE ARE SAVINGS, UH, FOR NEXT YEAR. 
          UM, AND THEN THE EXPENSES AT 2.2, $4 MILLION LEADS AND ENDING FUND BALANCE OF ABOUT $2.6 MILLION IN THE, UH, 2023 PROPOSED BUDGET. 
          AND THEN AN OVERVIEW OF ALL OF THE ITEMS THAT ARE BUDGETED FROM THE SELF-FUNDED SPECIAL PROJECTS FUND. 
          AND AGAIN, THESE ARE ALL ONE-TIME ITEMS. SO THERE IS, UM, A NEW POSITION, UH, A MANAGEMENT ANALYST AND DEVELOPMENT SERVICES. 
          THERE ARE SOME ONE-TIME COST ASSOCIATED WITH THAT. 
          UH, THERE'S THE ADOPTION OF THE 2021, UH, INTERNATIONAL CODE. 
          THERE IS THE CREATION OF AN OTHER POST-EMPLOYMENT BENEFIT TRUST. 
          UH, THERE ARE CONSULTING FEES, UH, TO IMPLEMENT ACCOUNTING STANDARD, UH, GASBY 96, UH, THERE'S SOME ONE-TIME FEES ASSOCIATED WITH THE CAPITAL BUDGET AND PLANNING SOFTWARE, UH, ONE TIME, UH, EXPENSES, UH, FOR THE FIRE DEPARTMENT TO UTILIZE AVAILABLE TASK FUNDS. 
          AND THOSE ARE, UM, THOSE ARE AMBULANCE OR THERE IT'S THE TEXAS AMBULANCE SUPPLEMENTAL SUPPORT PAYMENT PROGRAM, WHICH IS, UH, WHEN WE TRANSPORT SOMEBODY AND IT'S CHARITY CARE THAT WE, THAT WE GO THROUGH THIS PROCESS TO GET SOME REIMBURSEMENT FROM THE STATE THROUGH THAT. 
          SO, SO THOSE FUNDS, UH, ARE AVAILABLE TO THE FIRE DEPARTMENT TO USE. 
          UH, THEN THE GENERAL SERVICES DEPARTMENT IS BUDGETED SOME FIRE FACILITY MAINTENANCE, UH, SOME ONE-TIME COSTS, THEY'RE ALSO FACILITY LIGHTENING PROTECTION, UH, IS A ONE-TIME COST, UH, THEN BELTWAY TRAIL AND GREENSCAPE GREENSPACE CONSTRUCTION DOCUMENTS, UH, BECKERT PARK, LIGHT BULB REPLACEMENT AND ELECTRICAL WORK, UH, FOR THE PARKS DEPARTMENT, UH, CHIPPER EQUIPMENT FOR THE PARKS DEPARTMENT, UH, A PARKLAND DEDICATION AND DEVELOPMENT FEE STUDY FOR THE PARKS DEPARTMENT. 
          AND THEN SOME, ONE TIME, UM, COST ASSOCIATED WITH ANIMAL CONTROL, UM, OBTAINING SOME OFFICE SPACE AND THEN SOME ONE-TIME COST ASSOCIATED WITH THE NEW POSITION OF THE POLICE DEPARTMENT FOR A RECORDS CLERK, AND THEN THE ADDISON ATHLETIC CLUB, UH, THERE'S A WING WALL TREATMENT ON THE OUTSIDE TO MAKE THE, UH, EXTERIOR, UH, BRICK, UH, LOOK, UH, UNIFORM. 
          AND THEN THERE, UH, WITHIN THE STREETS DEPARTMENT, UH, PAINTING OF A WHEELER BRIDGE. 
          SO IN TOTAL, UH, THE PROPOSED BUDGET FOR THE SELF-FUNDED SPECIAL PROJECTS FUND, UH, IS 2 MILLION, $235,000. 
          UM, AND THERE'S ONLY ONE OF THOSE TOTAL BOND AND, UH, TOTAL REVENUE, UH, COMPARED TO FISCAL YEAR 2022 TO 20, IT LOOKS LIKE A, A PRETTY SIGNIFICANT DROP THERE. 
          UH, THE REASON FOR THAT IS IN FISCAL YEAR 2022, THE TOWN RECEIVED, UH, $2 MILLION RELATED TO THE AMERICAN RESCUE PLAN, WHICH COUNCIL BUDGETED TO GO TO THE HOTEL FUND, WHICH WAS THE HARDEST HIT BY THE PANDEMIC. 
          SO WHEN YOU ACCOUNT FOR THAT REVENUE, THE OPERATING REVENUE IS ACTUALLY INCREASING BY ABOUT $600,000. 
          AND THE MAJORITY OF THAT IS RELATED TO HOTEL TAXES, WHICH YOU'RE BUDGETED AT $4.8 MILLION, UH, WHICH IS AN INCREASE, WHICH MAKES UP, UH, ALL OF THAT INCREASE, UH, ON THE EXPENSE SIDE. 
          UH, THERE'S AN INCREASE OF ABOUT $550,000. 
          UH, AND THEN ON THE REVENUE TO EXPENSE, UH, YOU CAN SEE BECAUSE OF THAT AMERICAN RESCUE PLAN FUNDING THAT WE HAD REVENUE OVER EXPENSIVE ABOUT 1.8, $6 MILLION, UH, WITHOUT THAT IT DROPS DOWN AND IT'S ALMOST EXACTLY $2 MILLION, UH, IS THE DIFFERENCE, WHICH IS WHAT, UM, IS, IS THAT ACCOUNTED FOR THE AMERICAN RESCUE PLAN $2 MILLION THAT WE'VE RECEIVED. 
          OKAY. 
          CAN YOU TALK ABOUT THE SUSTAINABILITY OF LOSSES PLEASE? SURE. 
          SO, SO WE DO RUN THESE THROUGH OUR LONG-TERM PLANNING MODEL AND DURING THE BUDGET WORKSHOP, UH, WE DID SHOW 
          [00:20:01]
A SLIDE RELATED TO THE HOTEL FUND AND HOW SUSTAINABLE IT CAN BE. 
          AND WE WOULD PROJECT IN THREE TO FIVE YEARS THAT WE'RE GOING TO BE BELOW OR OUT OF RESERVE FUNDS, UH, IN THE HOTEL FUNDS. 
          SO, UM, AND I THINK I MENTIONED THAT THE BUDGET WORKSHOP, THERE'S PROBABLY SOME POLICY DISCUSSIONS THAT, THAT, THAT COULD HAPPEN RELATED TO, UH, SOME, SOME DIFFERENT THINGS IN WAYS TO CREATE SOME SAVINGS, BECAUSE IT'S REALLY FIXED ON THE REVENUE SIDE. 
          IT'S REALLY GOING TO HAVE TO COME FROM THE EXPENDITURE SIDE. 
          THANK YOU. 
          UH, THEN AGAIN, THE PROPOSED EXPENSES, 6.1, $1 MILLION, UH, AND UNLIKE THE GENERAL FUND, THE HOTEL FUND, THE MAJORITY OF THAT IS CONTRACTUAL SERVICES ARE RELATED TO PRIMARILY SPECIAL EVENTS. 
          SO CONTRACTUAL SERVICES MAKE UP ABOUT 66.8% OF THE HOTEL FUND BUDGET. 
          THEN WE HAVE PERSONNEL SERVICES AT 23.9% MAINTENANCE AT 6.2% CAPITAL REPLACEMENT AND LISA 2.1% AND THEN SUPPLIES A ROUNDED ROUNDED AT 0.9%, UH, GOING ON TO THE ECONOMIC DEVELOPMENT FUND. 
          UH, YOU CAN SEE TOTAL REVENUE, UH, PROPOSED, UH, COMPARED TO FISCAL YEAR 2022. 
          UH, THERE'S AN INCREASE THERE OF ABOUT $140,000, AND THAT IS RELATED TO AN INCREASE IN PROPERTY VALUE. 
          SO THE ECONOMIC DEVELOPMENT FUND, WHICH, UH, GETS ITS FUNDING FROM A FIXED, UH, PORTION OF THE TAX RATES. 
          SO THAT TAX RATE DOESN'T CHANGE FOR THEM. 
          SO AS PROPERTY VALUES GO UP, THEIR REVENUE GOES UP AS PROPERTY VALUES GO DOWN, THEIR REVENUE WOULD GO DOWN. 
          SO, SO THEIR REVENUE IS GOING UP SIMPLY BECAUSE PROPERTY VALUES WENT UP ABOUT $550 MILLION, UH, FOR FISCAL YEAR 2023, UH, ON THE EXPENSE SIDE, UH, INCREASE OF ABOUT $170,000 ON THE EXPENSE SIDE. 
          AND THEN YOU CAN SEE REVENUE TO EXPENSE, UH, AN INCREASE OF ABOUT, UH, $30,000. 
          AND ONE THING TO NOTE, THAT'S NOT ON HERE BECAUSE THIS SLIDE EXCLUDES TRANSFERS, BUT THE ECONOMIC DEVELOPMENT FUND GETS ABOUT $770,000 RELATED TO TOURISM, UH, TRANSFERRED FROM THE HOTEL FUND EACH YEAR. 
          SO THAT MEANS THAT THEIR REVENUE IS BASICALLY EQUAL TO THEIR EXPENDITURES EACH YEAR. 
          UH, ON THE EXPENSE SIDE, UH, THE MAJORITY OF THEIR EXPENSES GO TOWARDS OPERATIONS. 
          UH, 1.17 MILLION, UH, THEN THEY HAVE TOURISM, WHICH IS, UH, 850,000 AND THEN ECONOMIC DEVELOPMENT INCENTIVES MAKE UP ABOUT $160,000 OF THAT ECONOMIC, ECONOMIC DEVELOPMENT FUND BUDGET THEN GOING ON TO THE UTILITY OPERATING FUNDS. 
          SO TOTAL REVENUE COMPARED A YEAR TO YEAR FISCAL YEAR 2022 TO FISCAL YEAR 2023, UH, THERE'S AN INCREASE OF ABOUT $60,000 AND THAT IS RELATED TO THE PROPOSED, UM, UH, WATER AND WATER AND WASTEWATER CHARGE INCREASES OF ABOUT 5%, UH, PROPOSED FOR FISCAL YEAR 2023, UH, ON THE EXPENSE SIDE, UH, THE SAME THING ABOUT A $890,000 INCREASE, AND A LOT OF THAT INCREASE RELATES TO OUR WHOLESALE COST. 
          SO THOSE KINDS OF SELL COSTS, WHICH WERE PASSED ON TO THE END TO THE END-USE CUSTOMER. 
          UM, SO THAT ACCOUNTS FOR THE MAJORITY OF THE INCREASE IN THE OPERATING EXPENSES AND REVENUE TO EXPENSES IS A ABOUT $70,000 DIFFERENCE, UH, YEAR OVER YEAR. 
          SO OVERALL OUR WATER SALES ARE PROJECTED TO BE ABOUT 8 MILLION, $450,000. 
          OUR WATER PURCHASES ARE EXPECTED TO BE ABOUT 4 MILLION, $330,000. 
          ON THE WASTEWATER SIDE, WE ANTICIPATE REVENUE OF ABOUT 6 MILLION, $710,000, UH, WITH WASTEWATER TREATMENT COST OF ABOUT $3,830,000. 
          UH, SO, SO THOSE ARE THE AMOUNTS THAT WE PAY TO OUR WHOLESALERS, UH, ON THE OPERATION SIDE. 
          AND THIS IS, THIS IS US PAYING THE PEOPLE AND THE WORK THAT'S BEING DONE BY ACTUAL CITY EMPLOYEES WITHIN, UH, WITHIN OUR WATER AND WASTEWATER SYSTEM, UH, TO OPERATE THE SYSTEM IS ABOUT 5 MILLION, $410,000. 
          AND THEN WE PAY ABOUT $1,750,000 IN DEBT SERVICE, AND THEN, UH, COMPARING THE EXISTING, UH, RESIDENTIAL WATER AND SEWER BILL, UH, TO THE PROPOSED, UH, FIVE WITH THE 5% INCREASE, UH, WATER AND SEWER BILL. 
          SO YOU CAN SEE THAT AN AVERAGE, UH, CONSUMER THAT CONSUMES ABOUT 5,000 GALLONS A WEEK ABOUT A $3 AND 6 CENT INCREASE IN THEIR MONTHLY UTILITY BILL. 
          IF THEY USE ABOUT 8,000 GALLONS, THEY WOULD SEE ABOUT A $4 AND 50 CENT INCREASE. 
          AND IF THEY USE 10,000 GALLONS, THEY'D SEE AN INCREASE OF ABOUT $5 AND 46 CENTS IN FISCAL YEAR, 2023, AND THEN THE STORMWATER OPERATING FUND. 
          UH, THERE ARE NO PROPOSED RATE INCREASES IN THIS FUND. 
          [00:25:01]
UH, THE INCREASE IN REVENUE IS RELATED TO INCREASED INVESTMENT EARNINGS AND SUBMITS SOME MISCELLANEOUS INCOME, BUT THE RATES ARE, UH, PROPOSED TO STAY FLAT, UH, FROM FISCAL YEAR 2022 TO 2023. 
          THEN ON THE OPERATING EXPENSES, THERE IS A SLIGHT REDUCTION OF ABOUT $90,000. 
          ALL OF THE OPERATING EXPENSES ARE FOR OPERATIONS. 
          UM, AND THEN THERE IS A DEBT SERVICE PAYMENT OF ABOUT $490,000, UH, IN THERE. 
          SO OVERALL REVENUE TO EXPENSES ABOUT 1 MILLION, $190,000, WHICH IS AN INCREASE OF ABOUT $170,000 FROM FISCAL YEAR 2022, AND THEN THE AIRPORT OPERATING FUNDS. 
          SO, UH, TOTAL REVENUE, UH, YOU CAN SEE ABOUT 6 MILLION, $690,000, WHICH COMES PRIMARILY FROM LEASES OF 5 MILLION, UH, THREE, 5 MILLION, $300,000. 
          AND THEN WE HAVE SERVICE FEES OF ABOUT $1.3 MILLION. 
          IN TOTAL. 
          THE TOTAL OPERATING EXPENSES ARE PROPOSED AT 5.5, $6 MILLION, UH, WHICH IS AN INCREASE OF ABOUT $380,000. 
          AND THOSE PRIMARILY FUND OPERATIONS AT 4.6, $8 MILLION. 
          AND THEN THERE IS ADDITIONALLY THERE'S DEBT SERVICE OF ABOUT $890,000. 
          SO OVERALL OPERATING REVENUES TO OPERATING EXPENSES IN THE AIRPORT FUND, UH, ARE ABOUT A 1.1, $3 MILLION REVENUE OVER EXPENSE, UH, A DECREASE OF ABOUT $750,000 FROM THE PREVIOUS YEAR. 
          AND THEN LOOKING AT THE CAPITAL IMPROVEMENT PROJECTS FOR, UH, THE FIVE-YEAR TIME HORIZON. 
          SO IN FISCAL YEAR 2023, THE PROPOSED BUDGET INCLUDES 43.5, $3 MILLION IN CAPITAL IMPROVEMENT PROJECTS. 
          I DID WANT TO BRING UP IN THE UTILITY CERTIFICATES OF OBLIGATION. 
          I CALL THEM THAT NUMBER OF 2.4, $2 MILLION. 
          UH, THERE WAS, UM, UH, SOMETHING OMITTED THAT WAS IN THE PROPOSED BUDGET, UH, IN THE FISCAL YEAR 2022 BUDGET. 
          WE HAVE THE LAKE FOREST, UH, UTILITY, UM, IMPROVEMENT PROJECT BUDGET AT $1.2 MILLION WAS IN THE ORIGINAL PROPOSED BUDGET, ONLY INCLUDED THE WATER COMPONENT OF THAT. 
          UM, SO WE CORRECTED THAT HERE. 
          SO IT SHOULDN'T BE $1.2 MILLION, NOT WHAT WAS IN THE PREVIOUS BUDGET. 
          SO THAT'S A, A SLIGHT CORRECTION THERE. 
          UH, IT'S A DIFFERENCE OF ABOUT $300,000, UM, GOING ON THROUGH THE FIVE-YEAR HORIZON, THERE'S A TOTAL CAPITAL IMPROVEMENT BUDGET OF ABOUT 145.2, $3 MILLION THROUGH THAT FIVE-YEAR TIME HORIZON. 
          UH, THE MAJORITY 105 MILLION IS COMING FROM GENERAL OBLIGATION AND CERTIFICATES OF OBLIGATION. 
          UH, THEN THE NEXT BIGGEST COMPONENTS ARE OUR UTILITY CERTIFICATES OF OBLIGATION, UH, STORMWATER FUND CASH RESERVES, AND THEN AIRPORT FUND GRANT FUNDS AND AIRPORT FUND CASH RESERVES. 
          AND WITH THAT, I'LL BE HAPPY TO ANSWER ANY QUESTIONS ABOUT THE PROPOSED BUDGET. 
          CAN YOU REFRESH OUR MEMORY ON THE OPE AB TRUST? WHAT IS THAT AGAIN? SO WE HAVE SIMILAR TO WHAT WE HAVE FOR OUR PENSION. 
          UH, WE HAVE BENEFITS RELATED TO RETIREE HEALTH INSURANCE AND WHAT WE DON'T HAVE, OR ANY ASSETS TO PAY FOR THOSE BENEFITS. 
          SO, SO THAT LIABILITY IS ON OUR BOOKS, SIMILAR TO THE PENSION LIABILITY, BUT THERE'S NO ASSETS TO OFFSET IT. 
          SO THIS IS TO CREATE A TRUST, SIMILAR TO WHAT WE HAVE WITH TLRS EXCEPT THEY MANAGE THE TRUST. 
          THIS IS ONE TO PAY FOR THOSE BENEFITS THAT WE, THAT WE HAVE FOR, FOR OUR RETIREES IN THEIR HEALTH INSURANCE, ON THE FUND BALANCES AND THEIR PERCENTAGES. 
          ARE THERE, ARE YOU COMFORTABLE WITH THESE? ARE, DO YOU HAVE ANY CONCERNS WITH THEM AFFECTING OUR RATINGS? NO. 
          UM, THOUGH THE ONES THAT, THAT WOULD AFFECT OUR RATINGS OR THE GENERAL FUND, AND THEN THEY ALSO LOOK AT THE OTHER FUNDS THAT WE HAVE, LIKE THE SELF-FUNDED PROJECTS FUND, AND THEY LOOK AT, YOU KNOW, WE HAVE A, WE HAVE A STREET SELF-FUNDED FUND AND WE HAVE THE INFRASTRUCTURE INVESTMENT FUND. 
          WELL, THOSE ARE REALLY COMPONENTS OF THE GENERAL FUND. 
          SO THEY DON'T LOOK AT, SAY THE HOTEL FUND RIGHT NOW. 
          THEY DON'T LOOK AT THE UTILITY FUND OR THE AIRPORT FUND OR ANY OF THOSE OTHER FUNDS. 
          SO, SO OF THOSE FUNDS THAT, THAT OUR RATING IS BASED ON A VERY COMFORTABLE WE'RE IN A GREAT POSITION. 
          THE ONLY ONE THAT I REALLY HAVE CONCERNS ABOUT IS AS WE SPOKE ABOUT EARLIER AS THE HOTEL FUND OVER THE FIVE-YEAR HORIZON, UM, IF REVENUES DON'T COME BACK TO WHERE THEY WERE PRE COVID, UM, EVEN IF THEY DO THERE PROBABLY NEEDS TO BE A LOOK AT THE EXPENSES THERE. 
          UM, AND AT LEAST THE WAY THAT IF THEY'RE BEING BUDGETED AND MAYBE, MAYBE FINDING SOME EFFICIENCIES IN THEIR, THANK YOU 
          [00:30:01]
MORE QUESTION. 
          ALL RIGHT, LADIES AND GENTLEMEN, AS A SIDE TIME IS LISTED AS THE PUPPET, HEARING ANYBODY IN PUBLIC, WHICH TO SPEAK ON THIS ITEM. 
          YES. 
          CAN I ASK QUESTIONS? SURE. 
          UH, JUST STATE YOUR NAME AND THE ADDRESS. 
          OKAY. 
           YOU COME UP HERE BECAUSE YOU WON'T GET YOU OVER THERE. 
          GOT IT. 
          THEY CALL US ONE, FOUR, SIX, SIX, EIGHT WAYSIDE COURT. 
          UM, I'M CURIOUS ON THE STAFFING, YOU GAVE A LOT OF DETAIL. 
          DO YOU BENCHMARK YOUR STAFFING LEVELS AGAINST OTHER MUNICIPALITIES AND YOU DID A BROAD BASE ON THE TAX SIDE, BUT I'M CURIOUS IF YOU DO THAT KIND OF DROPPED DOWN INTO THE STAFFING. 
          WE DON'T DO THAT WITHIN THE FINANCE DEPARTMENT. 
          YOU DO THAT WITHIN HUMAN RESOURCES, I BELIEVE SO. 
          IN OTHER WORDS, YOU LOOK AT THE LEVELS OF STAFF, NOT SO MUCH THE DOLLAR COMP, BUT, AND I'LL MAKE THIS UP, BUT THERE'S 75 POLICEMEN. 
          DO YOU LOOK AT A PER SQUARE FOOT PER RESIDENT, SOME WAY TO KIND OF JUDGE, DOES THAT MAKE SENSE TOO LITTLE, TOO MUCH? IT'S REALLY TOUGH BECAUSE OUR RESIDENT POPULATION AND NIGHT COMPARED TO COMPARISON CITIES IS DIFFERENT. 
          SO SOMETIMES IT'S BASED ON SQUARE MILES, SOMETIMES SPACING THE COST OF THE QUALITY OF SERVICES OFFER IN THESE COMPARISON CITIES TO SEE IF THEIR SERVICE PHILOSOPHY MATCH DEVOUR. 
          SO WE DO A VARIETY OF WAYS, BUT THROUGH THE COMPENSATION STUDY CLASSES, WE DID, UM, THE INCENTIVE SIDE, HOW DOES ZACH GET AMORTIZED? SO IF YOU'RE, FOR INSTANCE, THE SILVER LINE, THERE'S X MILLION INCENTIVES THAT HAPPENS OVER TIME, BUT HOW DOES THAT GET ROLLED INTO THE BUDGET PROCESS? WELL, AS, AS THOSE ARE GOING TO COME ONLINE, WE WOULD, WE WOULD BUDGET THOSE. 
          WE WOULD PUT THOSE IN OUR LONGTERM FINANCIAL PLAN, BUT THE BUDGET THAT'S GOING TO BE ADOPTED, WE WOULD ANTICIPATE WHAT THOSE INCENTIVES WOULD BE FOR THAT OR THAT, THAT FISCAL YEAR. 
          AND THEN AS WE'RE LOOKING AT THE OUT YEARS, WE WOULD ANTICIPATE WITH THOSE WOULD BE IN THOSE OUT YEARS AND PLAN, TRY TO PLAN ACCORDINGLY. 
          OKAY. 
          UH, LAST QUESTION. 
          UH, YOU PROVIDE A LOT OF GOOD INFORMATION, BUT IS THERE OBVIOUSLY THE COUNCIL IS PRIVY TO A LOT MORE INFORMATION? IS THERE A PUBLIC SITE, OR CAN YOU GET A DEEPER DIVE INTO THE BUDGET NUMBERS BEYOND WHAT YOU'RE PRESENTING TO? YEAH, ABSOLUTELY. 
          SO ON OUR WEBSITE, THERE'S THE FULL PROPOSED BUDGET. 
          UH, THERE'S ALL OF THE ITEMS RELATED TO, UM, THE TAX RATE, AS FAR AS OUR NOTICES THAT WE'RE REQUIRED TO PUT OUT AND THE TAX RATE AND THE KIND OF REVENUE THAT THAT WOULD GENERATE. 
          UM, WE, UH, I BELIEVE ON THE DALLAS COUNTY TAX OFFICE PAGE AS WELL, THEY'RE, THEY'RE REQUIRED TO PUT ITEMS OUT AS FAR AS OUR TAX CALCULATION AND THOSE TYPES OF THINGS. 
          UM, DOES THAT ANSWER YOUR QUESTION? DO YOU DO TO BURN NICE JOB. 
          THANK YOU. 
          THANK YOU, DAVID. 
          AND THE OTHER COMMENT, NO, SINCE NO ONE IN PUBLIC WISH TO SPIT ON THE SIDE, AM I HEREBY CLOSE THE PUBLIC HEARING? I THINK THE MEETING IS ADJOURNED.
* This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting.