May 27, 2025 Work Session and Regular Meeting

I LIKE THAT.

I HAVE A FURTHER QUESTION ON IT.

UM, SO ONE OF THE REASONS FOR THE, UM, USEFULNESS OF BRANDING 'EM IS YOU DON'T HAVE TO PUT 'EM OUT.

YOU DON'T HAVE TO STORE 'EM.

AND THEY'RE, THEY'RE HEAVY.

SO YOU HAVE SPECIAL EQUIPMENT PROBABLY TO, TO HAUL AROUND AND YES.

LOAD 'EM AND UNLOAD 'EM.

I DID NOTICE IT SAID SOMETHING ABOUT THE EQUIPMENT.

SO IS THAT, UM, WE'RE OKAY TO ABSORB THAT.

UM, THEY'RE THE TRAILER, THERE'S A COUPLE OF, UH, JACKS TO MOVE THEM MM-HMM .

UH, SO WE FEEL WE CAN DO THAT WITH OUR EXISTING STAFF.

IS IT THE SAME BARRIERS AS THE ONES THAT YOU RELEASED? YES.

HOW MUCH DID, DID WE, UH, PAY FOR LEASING THOSE? IT WAS 120 FOR THE THREE EVENTS THIS YEAR.

PLEASE CATCH ME UP ON THESE BARRIERS.

WHAT, GIVE ME A QUICK DESCRIPTION OF, UH, YES SIR.

WHAT KIND OF BARRIERS? I'M LOOKING AT FOR, FOR 20 OF 'EM THAT COST A HUNDRED THOUSAND DOLLARS.

SO THE BARRIERS ARE LIKE AN LHA OR MADE OUT OF METAL TO POSITION ALL THE WAY AROUND THE PARK.

SO THAT WAY IF A VEHICLE DROVE UP TO THE EVENT SITE AND TRIED TO DRIVE THROUGH, IT WOULD HIGH CENTER ON THIS METAL.

SO THEY WOULD PREVENT A VEHICLE FROM, FROM GAINING ENTRY TO PEDESTRIAN.

YES, SIR.

IT'S A RESULT.

IT, SOME OF THE CAME FROM THE TANK.

IT'S NOT JUST THE METAL.

OH NO, IT'S NOT JUST ONES THAT YOU I UNDERSTAND.

THANK YOU VERY MUCH, ADAM.

WELL, AND, AND SEEING HIM IN PLACE OF TASTE THIS YEAR SURE.

WAS, UH, COMFORTING.

I THOUGHT.

AND IT WAS IN ALL THE RIGHT PLACES IT SEEMED LIKE TO ME.

SO, YEAH.

ANY OTHER QUESTIONS ON CONSENT OR ON THIS ITEM? NO HONOR.

UM, ITEM NUMBER THREE, A COUNCIL QUESTIONS AND ANSWERS.

UH, WHEN COUNCIL SENDS QUESTIONS TO CITY MANAGER'S OFFICE REGARDING ITEMS ON THE AGENDA, THOSE, THOSE QUESTIONS ARE PUT INTO A DOCUMENT WITH THE RESPONSES FROM STAFF AND, UH, THEY'RE ALL PUT INTO ONE DOCUMENT AND SENT OUT TO COUNSEL AHEAD OF TIME.

AND THEN THAT SAME DOCUMENT IS ALSO AVAILABLE TO THE PUBLIC.

IT IS UPLOADED TO THE WEBSITE.

SO IF ANYBODY GOES ON TO THE TOWN WEBSITE, PULLS UP THE AGENDA, THERE'LL BE A LINK TO IT IN THAT DOC IN THAT, UH, AGENDA DOCUMENT.

AND, UH, I DON'T KNOW IF THERE WERE ANY FOR THIS, FOR THIS MEETING.

I DIDN'T BELIEVE SO.

FOUR IS A CLOSED MEETING.

BUT, UH, VERY GOOD.

ALRIGHT, SO ITEM NUMBER

[4. Closed Meeting. The Addison City Council will enter a Closed Meeting pursuant to Texas Government Code Sections 551-071 through 090 to discuss the following item(s):]

THE ADDISON CITY COUNCIL WILL ENTER A CLOSED MEETING PURSUANT TO TEXAS GOVERNMENT CODE SECTION 5 51 DASH 0 7 1 THROUGH 0 9 0 TO DISCUSS THE FOLLOWING ITEMS. UH, FIVE FOUR A IS, UH, PURSUANT TO SECTION 5 51 0.071, SECTION TWO TO RECEIVE LEGAL ADVICE FROM THE CITY ATTORNEY REGARDING AGENDA ITEM FIVE, A QUORUM

[00:05:01]

SPEED LIMIT, AND IT IS 6 0 5.

WE'LL GO INTO CLOSE SESSION AT THIS TIME.

COMING BACK INTO OPEN SESSION AND IT IS 6 21.

WE ARE

[5. Open Meeting. In accordance with Texas Government Code Chapter 551, the Addison City Council will reconvene in an Open Meeting to consider action, if any, on the matters discussed in the Closed Meeting.]

THERE IS NO ACTION TO BE TAKEN FROM THE CLOSED SESSION.

AND WE'LL MOVE ON

[a. Present and discuss leased vehicle property tax.]

TO THE OUR WORK SESSION REPORTS.

UH, ITEM SIX A AT PRESENT AND LEASED VEHICLE PROPERTY TAX.

AND THAT STEVEN, UH, THANK YOU MAYOR AND COUNCIL.

STEVEN LIPMAN, CHIEF FINANCIAL OFFICER.

AND, UH, THIS, THIS ITEM ABOUT PERSONAL LEASE VEHICLE PROPERTY TAX, UH, WAS REQUESTED BY COUNCIL MEMBERS, UM, WILL AND LISIO.

UM, AND THIS IS A QUESTION WE GET, WE GET QUITE A BIT.

I GET QUITE A FEW CALLS EVERY YEAR ABOUT THIS, UM, ABOUT, ABOUT APPRAISAL AND TAX TIME.

SO I'M SURE COUNCIL MEMBERS AND OTHER FOLKS DID HAVE SOME QUESTIONS ABOUT THIS.

BUT I'M GONNA GO OVER, UH, SOME BACKGROUND AND HISTORY ABOUT WHAT THIS IS AND WHY.

ADDISON, YOU KNOW, WHY THIS IS A QUESTION WE MAY GET.

BUT, UH, BACK IN, UH, 2001, UH, THE STATE MADE IT WHERE, UH, PERSONAL, UM, VEHICLES, UM, COULD BE EXEMPT FROM PROPERTY TAXES.

PRIOR TO THAT THEY WERE, THEY WERE TAXED IF THEY WERE LEASED.

UM, SO THE TAX CODE DEFINES THESE AS BASICALLY FARTHER TRUCKS THAT ARE 9,000 POUNDS OR LESS, MEANING PERSONAL USE IS DEFINED AS VEHICLES THAT BASICALLY 50%, UM, OR MORE OF THIS MILEAGE.

UH, BASICALLY IT'S FOR PERSONAL USE OR NOT, UH, FOR BUSINESS PRODUCTION OR PRODUCTION PRODUCTION OR PRODUCTION TICKET.

SO CITIES WERE GIVEN A ONE TIME OPPORTUNITY, UH, BACK IN, UH, 2001 TO ADOPT AN ORDINANCE IF THEY CHOSE TO, UM, TO KEEP, UH, ASSESSING THE PROPERTY TAX ON PERSONAL LEASE VEHICLES.

UH, IF YOU DID SO BEFORE JANUARY 1ST, 2002, UM, ADDISON DID PASS SUCH AN ORDINANCE BACK IN 2001, BUT TO CONTINUE THAT, UH, PROPERTY TAX ON PERSONAL LEASE VEHICLES, AND THEN THE COMPTROLLER WENT OUT AND DID A SURVEY STATEWIDE, UH, BACK IN 2005, THERE WERE 75 CITIES STATEWIDE.

THEY CONTINUED TO DO TO, UH, ASSESS THAT PROPERTY TAX ON PERSONAL LEASE VEHICLES.

UH, AND THE TOWN ACTUALLY DID A SURVEY, UM, ABOUT I THINK 2017, UH, IN DALLAS, COLLIN AND DENTON COUNTIES, THERE ARE 13 CITIES INCLUDING ADDISON, THAT COULD ASSESS THE PROPERTY TAX ON PERSONAL LEASE VEHICLES.

UM, YOU CAN SEE THE LIST THERE.

WE ALSO, UH, LIST OUR COMPARER CITIES THAT CONTINUE TO ASSESS THIS TAX.

CARLTON, FRISCO RICHARDSON, IN ADDITION TO ADDISON, UH, ASSESS THIS, THIS TAX.

UM, AND THEN, UH, THOSE ALSO ARE LISTED ON JUST ALL CITIES, THESE ON CALENDAR COUNTY.

UH, SO THAT'S KIND OF HOW WE, HOW WE GOT THERE TO, UH, WHERE WE'RE AT TODAY.

SO IF WE LOOKED AT OUR PROPERTY TAX ROLL, WHERE, WHERE WE ARE AT FOR, UH, THE UPCOMING TAX ROLL OR ABOUT WHERE WE'VE BEEN IN THE, IN THE LAST COUPLE OF YEARS, UH, THERE'S ABOUT 45 MILLION IN TOTAL, UM, VEHICLE VALUE ON THE TAX ROLL, ABOUT 20 MILLION OF THAT IS PERSONAL LEASE VEHICLES.

UH, THAT MAKES UP ABOUT 0.3% OF THE TOTAL TAX ROLL.

UM, SO WHEN WE TALK ABOUT THAT AND HOW MUCH PROPERTY TAX THAT GENERATES IN DOWN, UM, ALL VEHICLES BRING ABOUT 270,000.

THE PERSON LEASED VEHICLES ARE ABOUT 120,000.

SO WHEN YOU'RE LOOKING AT, YOU KNOW, SAY OUR GENERAL FUND, YOU KNOW, PROPERTY TAX REVENUE, THAT $120,000 IS BASICALLY GOING INTO THAT BUCKET THAT'S FUNDING OUR BASIC SERVICES.

SO IF COUNSEL DID WISH TO MAKE A CHANGE TO ASSESSING THIS PROPERTY TAX, UM, IT WOULD REQUIRE AN ORDINANCE, UH, TO BE ADOPTED BY COUNSEL.

UH, WE'RE ALREADY WITHIN THE PROPERTY TAX PROCESS FOR THIS YEAR.

UH, SO THE APPRAISAL DISTRICT, UH, WOULD WANT THIS BY THE END OF FEBRUARY.

SO IF YOU WANTED TO MAKE IT EFFECTIVE FOR, UH, 2027, THAT IF YOU ADOPTED AN ORDINANCE PRIOR TO THE END OF FEBRUARY, THAT COULD BE, UM, IN EFFECT FOR 2027.

SO THE, THE PROPERTY TAXES THAT ARE, THAT WE'RE ABOUT TO GO THROUGH WITH THE BUDGET PROCESS, FOLKS HAVE ALREADY GOTTEN THEIR NOTICES FOR THOSE, UH, PROTESTS THAT BEGUN.

UH, THEY'RE ALREADY INVOLVING IN THAT PROCESS.

SO, UH, THE APPRAISAL DISTRICT REQUIRES THAT INFORMATION TO GET TO THEM BEFORE THEY START TO THAT THOSE NOTICES AND THOSE TYPES OF BILLS.

AND THEN THERE ARE SOME OTHER CONSIDERATIONS.

SO THERE IS A BILL, UH, THAT HAS BEEN, UM, ACTUALLY PASSED THE SENATE AND THE HOUSE AT

[00:10:01]

THIS POINT.

UM, THEY WERE PRETTY FAR OFF ON THE DOLLAR AMOUNT OF THESE BILLS WHEN, WHEN THEY STARTED.

BUT, UM, THEY'VE SETTLED ON A PROPERTY TAX EXEMPTION FOR BUSINESS PERSONAL PROPERTY OF $125,000.

UH, THAT WOULD VIRTUALLY ELIMINATE ALL OF THE, UM, PROPERTY TAX ASSESSMENTS ON, UH, LEASED VEHICLES BECAUSE THE PERSONAL AND BUSINESS PERSONAL PROPERTY LEASE VEHICLES ARE ALL UNDER THAT BUSINESS PERSONAL PROPERTY, UH, BUCKET.

UM, SO THIS WOULD REQUIRE TO GO TO THE VOTERS VIA A CONSTITUTIONAL AMENDMENT, UM, IN NOVEMBER.

SO IF THIS GETS APPROVED, IT WOULD BASICALLY WIPE OUT THE PROPERTY TAX ON THE PERSONAL LEASE VEHICLES ANYWAY, UM, AND A LOT OF OTHER THINGS.

BUT, UH, BY THE TIME WE GET TO NOVEMBER, WE WOULD KNOW THE ANSWER TO THIS IF THIS PASSES OR FAILS THE COUNSEL WISH TO, TO MOVE FORWARD AND, AND CHANGE ANYTHING ABOUT WHAT WE'RE DOING RIGHT NOW.

SO THAT'LL BE HAPPY TO ANSWER ANY QUESTIONS I CAN.

QUESTIONS.

UM, STEVEN, THANK YOU FOR, UH, THE PRESENTATION.

UM, CAN YOU, CAN YOU GO THROUGH A SAMPLE LIST OF, OF THE TYPE OF VEHICLES WE'RE TALKING ABOUT? I'M JUST TRYING TO FIGURE OUT, I'M JUST TRYING TO VISUALIZE WHAT ALL WE'RE TALKING ABOUT.

OBVIOUSLY WE KNOW ABOUT AUTOMOBILES MM-HMM .

BUT LIKE BULLETS, PLANES.

SO WE, WE DON'T GET THE TYPES OF VEHICLES.

SO THE WAY IT WORKS, BECAUSE THE INDIVIDUAL, UM, GENERALLY ISN'T GETTING THE TAX BILL BECAUSE THEY'RE NOT THE OWNER OF THE PROPERTY, IT'S THE COMPANY.

IT'S USUALLY A FINANCING COMPANY THAT'S LEASING THE PROPERTY TO AN INDIVIDUAL.

SO FOR INSTANCE, WE'LL HAVE, YOU KNOW, FORD MOTOR FINANCING COMPANIES LISTED.

IT'S NOT LISTING THE INDIVIDUAL PROPERTIES, BUT REALLY A GROUP OF PROPERTIES THAT, THAT, THAT LEASE, THAT LEASE STORE MADE MAY BE LEASED INTO OCCUPANTS IN ADDISON.

IF THAT MAKES SENSE.

SO IT'S USUALLY A BUCKET OF PERSONAL PROPERTY FROM ONE COMPANY THAT'S THE, BASICALLY THE OWNER OF THE PROPERTY.

SO WE'RE NOT GETTING, SAY, YOU KNOW, THERE'S A ONE CAR AND IT'S A, THIS ADDRESS WE'RE GETTING, THIS IS THE LEASE COMPANY, THIS IS THE AMOUNT OF LEASES THAT THEY HAVE ON THE BOOKS THAT ARE, THAT ARE AT ADDISON.

AND THAT'S KIND OF THE WAY THAT WE GET THAT INFORMATION.

DO WE HAVE ANY IDEA, UM, WHAT TYPE OF VEHICLES, UM, THAT WE'RE TALKING ABOUT? IS IT MORE THAN AUTOMOBILES? WHAT IT PLANES? UH, PLANES.

PLANES ARE, ARE ALL TAXED UNLESS THERE'S SOME TYPE OF TAX EXEMPT STATUS WITH THE, WITH THE OWNER.

AND SO WE HAVE APPROXIMATELY, I THINK AROUND 200 PLANES THAT ARE PAYING PROPERTY TAXED THAT ARE, UM, OPERATE OUT OF, OUT OF OUR AIRPORT.

SO THOSE ARE, CAN WE GO BACK TO SLIDE FIVE PLEASE? SO WHEN YOU'RE, WE'RE TALKING ABOUT THESE PERSONALIZED LEASE VEHICLES, THESE ARE JUST CARS AND TRUCKS? NO PLANS.

NO PLANS.

UM, JUST CARS AND TRUCKS? NO, THESE ARE CARS AND TRUCKS.

I DON'T BELIEVE THIS CONTAINS VOTES.

UM, I'D HAVE TO DOUBLE CHECK WITH THE APPRAISAL DISTRICT, UM, BECAUSE IT DOESN'T FIT IN THE DEFINITION OF, GO BACK TO THAT OF, UM, PASSENGER CARS OR TRUCKS FOR THE SHIPPING WEIGHT OF UNDER 9,000 POUNDS.

BUT MAINLY WE'RE TALKING ABOUT CARS AND TRUCKS.

HOW OLD IS TYPICALLY PAID? UH, AT LEASE A VEHICLE IN TEXAS? MM-HMM .

AND I, AND I GUESS, I KNOW THERE'S SEVERAL DIFFERENT TYPES OF LEASES, BUT I'M, I'M ASSUMING MOST LEASES YOU DON'T OWN THE ASSET, SO, YOU KNOW, TO YOUR POINT, WHOEVER IS LEASING THE LEASE OR, UM, YOU KNOW, WOULD BE PAYING THAT TAX, DOES THAT GET PASSED ON? IT DOES.

GENERALLY THEY'LL PAY THE TAX AND THEN THEY'RE SENDING A BILL TO WHOEVER IS LEASING THE PROPERTY FROM LEASING .

I SEE.

IS IT A LINE ITEM TO, TO THE LEASE? IT USUALLY IS, YOU KNOW, I'LL, I'LL GIVE AN EXAMPLE.

I, I LIVE IN ARGYLE.

UM, I GOT A, I HAVE A LEASED VEHICLE.

I GOT A ONE OFF A HUNDRED DOLLARS TAX BILL, TAX INVOICE FROM THE LEASE COMPANY, UM, FOR TAXES THAT THEY HAD PAID ON MY LEASE VEHICLE BECAUSE IF IT'S NOT A BROKEN OUT TO THE LEASE AND WE, WE DROP THIS TAX, UH, IT MAY NOT EVEN BE PASSED ON TO THE RECEIPT.

BUT IT'S NOT A LINE ITEM OR A SEPARATE BILL.

IT MAY NOT BE.

AND THAT THAT SAVINGS WOULD NOT BE CORRECT.

THAT WOULDN'T BE THE INTENT.

THE LEASE TAX PORTION OF IT OR NOT.

AND I DON'T KNOW IF EVERYBODY GETS A, GETS A INVOICE REFLECTING

[00:15:01]

I'VE JUST HEARD FROM SOME RESIDENCE, BUT ONE RESIDENCE HERE SHARED WITH ME HIS BILL AND IT, IT IS BROKEN OUT.

UM, AND SO THIS IS, UH, UH, FOR EXAMPLE, A 2023 INFINITY Q 50, UM, AND, AND THE CHARGE IS $212 ANNUALLY.

CAN CAN YOU GO BACK TO SLIDE FIVE? UM, WHEN YOU HAVE ALL LEASE VEHICLES IS 45 MILLION, BUT THEN YOU HAVE 69 PER, PER 0.69.

UM, I GUESS I'M WONDERING IS IS IT SUPPOSED TO BE A HUNDRED PERCENT? I'M NOT FOLLOWING NO, THAT'S THE PERCENTAGE OF OUR TOTAL TAXABLE VALUE.

SO THE, THE 45 MILLION MAKES UP ABOUT 0.6, 9% 0.7 OF ALL, OF ALL THE TAXABLE VALUE PROPERTY WITHIN THE TOWN.

AND DOES THE 45 MILLION INCLUDE AIRPLANES FOR A DOZEN? THAT'S NOT AIRPLANES, THAT'S JUST VEHICLES THAT ARE USED FOR PRODUCTION OF INCOME AND THEN ALSO THE PERSON USED VEHICLES.

SO THAT 45 INCLUDES THE 20.

THAT'S CORRECT.

AND IS IT THE 20 THAT WHY WE'RE TALKING ABOUT THIS? THAT'S CORRECT.

BUT, AND WE CAN WE GET RID OF THE 20 WITHOUT GETTING RID OF THE OTHER 35, THE THE OTHER PART WOULD NOT, WOULD NOT GO AWAY.

SO THAT IS CURRENTLY IN CURRENT LAW TAXABLE.

UM, THERE'S NOT A CHANGE THAT COUNSEL COULD MAKE THAT WOULD CHANGE THAT, UM, PART OF THAT LEGISLATION I TALKED ABOUT WOULD CHANGE SOME OF THAT.

UM, BUT YEAH, THIS DISCUSSION IS REALLY ABOUT THAT, THAT 20 MILLION THAT'S THERE, THIS WAS JUST AN ILLUSTRATION TO SHOW HOW MANY TOTAL LEASE VEHICLES THERE ARE IN THE TOWN, HOW THAT COMPARES TO OUR PROPERTY TAX ROLL.

AND THEN HOW MUCH OF THOSE THAT ARE THE PERSONAL LEASE VEHICLES THAT ARE OUR TAX ROLL.

SO WE WOULD STILL HAVE THE 150 MILLION, 150,000 OF TAX.

WE WOULD STILL, EVEN IF WE GOT RID OF THIS? THAT'S CORRECT.

WE WOULD, WE WOULD BE LOSING $120,000 IF THE COUNCIL WISHED TO BRING BACK AN ORDINANCE AND SAY, WE WANTED TO, WE WANT TO EXEMPT THESE PERSONAL ESTATE.

DID DID THIS COME FROM THIS ONE PERSON? NO.

NO.

HAVE YOU HEARD MORE THAN ONE EVIDENCE? WELL, CAN YOU GO BACK TO THAT BACKGROUND AND HISTORY SLIDE? I DON'T KNOW WHICH MEANT, UH, WHERE THE CITIES ARE LISTED.

WHAT, WHAT YEAR DID YOU SAY THIS WAS POSTED? UH, THAT WAS THE, THAT, UH, THE, THE LEFT COLUMN WAS IN 2017.

MY RESEARCH IN THE, THE LAST COUPLE OF DAYS ON THIS, THAT LIST HAS WINDLED TO NINE CITIES.

SO THERE ARE OTHER CITIES FOLLOWING THIS PATH.

AND I, I THINK THEY'RE, THE LEGISLATURE IN AUSTIN IS FOLLOWING THAT, FROM WHAT I UNDERSTAND.

THEY THOUGHT THIS WOULD ALL GO AWAY ANYWAY WHEN THE, WHEN THE LAW PASSED.

AND, AND THROUGH THE PROPERTY TAX REDUCTION EFFORTS IN THE LEGISLATURE.

THIS IS ONE THING, AS YOU SAID, THEY'RE TRYING TO GET RID OF.

SO MY RESEARCH HAS INDICATED THAT WE'RE DOWN TO NINE ON THIS LIST AND WE'RE ONE OF NINE.

UM, AND COINCIDENTALLY MOST OF THEM IS RIGHT HERE IN OUR CORRIDOR.

SO I'M WONDERING WHY THIS CORRIDOR SEEMS TO BE HOLDING ONTO THAT TAX WHEN ALL OTHERS HAVE HAVE ABANDONED IT.

DO YOU HAVE ANY YEAH.

INSIGHT INTO THAT? I DON'T REALLY HAVE ANY, ANY INSIGHT INTO IT.

I THINK IT'S, I MEAN, LIKE, IT'S SUCH A SMALL AMOUNT COMPARED TO THE TOTAL TAX ROLL.

RIGHT.

UM, I, YOU KNOW, I I, YEAH.

I DON'T, I DON'T REALLY HAVE ANY INSIGHT INTO, WELL, I HOPE THIS IS A GOOD STEP FOR SOME TAX RELIEF FOR PEOPLE.

OTHER THAN I THINK, YOU KNOW, THESE WERE DECISIONS MADE, YOU KNOW, ALMOST 25 YEARS AGO AND THE FOLKS THAT MAY BE IN CHARGE NOW ARE RARE OR WELL, IT WAS A, IT WAS A DIFFERENT TRAIN OF THOUGHT.

SURE.

I UNDERSTAND.

WELL, WHEN YOU PURCHASE A CAR, YOU PAY SALES TAX, RIGHT? IT'S A DIFFERENT SALES TAX THAN YOU PAY THE STATE PORTION OF SALES TAX.

YOU PAY LOCAL SALES TAX.

WHEN YOU ACQUIRE A LEASE THOUGH, DO YOU PAY TAX THERE? THERE AREN'T SALES TAX ON THE LEASE.

SO YOU ARE ESSENTIALLY IN YOUR LEASE PAYMENT.

AND YOUR OWN PERSONAL VEHICLE OWNED, WE'RE NOT PAYING PROPERTY TAX ON IT.

IT'S KIND STRANGE THAT THIS IS STILL THERE.

IT'S, IT'S ALMOST LIKE IF THE LEASE, IF THEIR ASSET THAT'S MAKING MONEY FOR 'EM, THAT SHOULD BE THEIR COST.

IT'S STRANGE THAT THEY'RE ALLOWED TO PASS IT ON TO THE VC.

IT'S A DIFFERENT PROBLEM.

IT'S NOT GONNA GET SOLVED TONIGHT.

IT IS ALMOST A DOUBLE TAXATION TYPE SITUATION BECAUSE THERE IS SALES TAX BEING COLLECTED AND THEN THERE'S AN ANNUAL PERSONAL TAX BEING COLLECTED AND IT JUST SEEMS LIKE IT'S KIND OF DOUBLE DIPPING.

BUT THAT'S GOOD INFORMATION ABOUT THE, UH, CURRENT NUMBER OF CITIES IS 2017.

IT'S A GOOD WHILE BACK.

IT,

[00:20:01]

THERE'S AN ANNUAL PROPERTY TAX.

I AM WITH PROPERTY TAX.

DID I MISSTATE? YES.

NO, YOU CORRECT.

I JUST, IS THERE A SALES TAX ON THE LEASE PAYMENTS YOU SAID? YEAH.

THE, THE LEASE IS BASICALLY STATED THE SAME WAY AS A SALE FOR SALES TAX PURPOSES.

SO THAT'S EVERY PAYMENT THAT YOU'RE MAKING, THERE'S NOT GONNA BE SALES TAX LISTED ON IT MM-HMM .

BUT THE TOTAL AMOUNT OF YOUR LEASE PAYMENTS ARE INCLUDING THE SALES TAX ON THE LEASE PRICE OF THE VEHICLE.

DID, DID THESE LEASE COMPANIES THAT ARE PAYING THIS TAXES, ARE THEY LOCATED, IS, IS THE COMPANY LOCATED IN ADDISON OR THE FACT THAT THE CAR IS LOCATED IN, IT'S THE VEHICLE THAT'S LOCATED IN ADDISON.

SO IT'S NOT NECESSARILY THE, THE COMPANY COULD, BUT MOST OF THESE COMPANIES ARE NOT LOCATED IN ADDISON.

SO IT'S GENERALLY, UH, YOU KNOW, LIKE I MENTIONED, I'LL USE FORD MOTOR LEASING COMPANY IS ONE I SEE ON THERE QUITE A BIT.

UM, THEY'RE NOT LOCATED IN ADDISON.

IT'S JUST THEIR VEHICLE.

IT'S, SO HOW DO WE KNOW HOW WE'RE GOING TO CHARGE THE TEXT OR HOW DO WE KNOW WHO'S GOT A LEASE VEHICLE? YEAH.

WHEN YOU, WHEN YOU BUY, WHEN YOU GO TO BUY OR, OR WHEN YOU GO TO LEASE A VEHICLE, THERE'S A, A QUESTION I THINK THAT, UH, ONE I HAVE YOUR ADDRESS, BUT TWO, THERE'S A QUESTION, AND I JUST KNOW THIS BECAUSE I'VE LEASED VEHICLES BEFORE THAT ASK YOU IF YOU'RE GONNA USE THIS FOR THE PRODUCTION OF INCOME OR NOT.

AND IF YOU SAY NO AND YOU LIVE IN ONE OF THESE CITIES THAT AREN'T LISTED, UM, THEN YOU'RE NOT GONNA PAY TAX IF YOU, YOU KNOW, FOR INSTANCE, I LIVE IN ARGYLE, UM, REGARDLESS OF WHAT MY ANSWER IS, UM, THEY KNOW I LIVE IN ARGYLE AND THEY KNOW I LEASE THE VEHICLE.

SO THE APPRAISAL DISTRICT GETS THAT INFORMATION AND ASSESSES THE, THE PROPERTY TO THE PEOPLE THAT LEASED THE VEHICLE TO YOU.

'CAUSE THEY OWN IT, RIGHT? CORRECT.

AND THEN THEY TURN AROUND AND OH, THEY PAY THE TAX AND DID ECAD ME GET OUR, THIS WASN'T FOLLOWING HOW, HOW WE GOT IT AND IT'S ABOUT A THIRD OF 1% OF OUR REVENUE PROPERTY.

IT'S ABOUT A THIRD OF 1% OF THE PROPERTY TAX AND IT'S ALSO LIKELY GOING AWAY VERY SOON.

WELL IT SEEMS LIKE THAT EXEMPTION MAY NOT BE JUST FOR THAT FOR THE VEHICLES, MAYBE OTHER PROPERTY THAT THE BP OH, IT'S MUCH BIGGER.

SO THERE WOULD BE THAT 1 25 PLUS S ONE 20, UH, THAT WOULD INCLUDE YOUR AIRPLANES, YOUR MM-HMM .

YOU KNOW, ALL THESE OFFICE BUILDINGS THAT ARE LEASING PRINTERS.

UM, YOU KNOW, I, WE LEASE PRINTERS THAT WE, YOU KNOW, LIKE WE'RE THE, WE'RE THE, YOU KNOW, THE, THE LEA, SO , THAT CANNON PRINTING COMPANY OR WHATEVER THEY ARE, UM, THEY PAY PROPERTY TAX AND THEN THEY TURN AROUND AND BILL THE TOWN.

OR EVEN THOUGH WE'RE TAX EXEMPT, WE'RE NOT GOING RIGHT.

UM, SO YOU CAN IMAGINE HOW MANY, YOU KNOW, BUSINESS PERSONAL PROPERTY ACCOUNTS ARE WITHIN, UM, SOME OF THESE OFFICE BUILDINGS.

THERE, THERE'S A LOT, UH, ABOUT 2,800 OF THE TOTAL 6,600 PROPERTIES IN EDISON ARE PERSONAL PROPERTY.

SO ALMOST, ALMOST HALF.

STEVEN, ONE MORE TIME ON THIS SLIDE SEVEN.

CAN YOU TALK ME THROUGH THIS, THIS LEGISLATION AND THE CORRELATION BETWEEN THAT AND SOME OF THESE VEHICLES? YEAH, I THINK, UH, YOU KNOW, I BROUGHT THIS UP JUST BECAUSE THIS WOULD ESSENTIALLY D VIRTUALLY ELIMINATE THE PROPERTY TAX ON THE LEASE VEHICLES ANYWAY UNLESS SOMEONE WAS HAPPENING, HAPPENING TO LEASE THE VEHICLE THAT HAS A VALUE OVER $125,000 BECAUSE THIS WILL EXEMPT ALL, UH, BUSINESS PERSON PROPERTY, WHICH IS INCLUDING THESE PERSONAL LEASE VEHICLES, UH, UP TO THAT 25.

SO, SO WE HAD A PERSONAL LEASE VEHICLE AND I'M NOT GONNA USE IT FOR BUSINESS AT ALL.

I'M STILL GETTING THIS TAX CURRENTLY.

AND THIS IS ALSO, EVEN THOUGH I'M NOT USING IT FOR BUSINESS, YOU'RE SAYING IT'D BE THE SAME AS BPP BUSINESS.

MM-HMM.

IT'S LISTED PROPERTY, IT'S LISTED IN THAT CATEGORY.

SO STEVEN, ANYTHING THAT WE DO ON THIS NOW ISN'T GOING TO TAKE EFFECT UNTIL 2027, CORRECT? THAT'S CORRECT.

AND SO WOULD IT MAKE SENSE TO SEE IF THIS GETS, GOES THROUGH THE LEGISLATION AS IT IS? BECAUSE WE, WE COULD DO SOMETHING NOW AND IT WOULDN'T MAKE ANY DIFFERENCE IF THIS HAPPENS, BUT THERE'S NO RUSH TO DO IT IF, IF THIS DIDN'T HAPPEN, BUT I EXPECT IT PROBABLY WILL.

UM, THEN IF IT, IF IT DIDN'T, THEN WE COULD TAKE ACTION AT THAT POINT IF WE, IF WE WANTED TO.

IN NOVEMBER, BECAUSE THIS WILL HAVE TO GO TO VOTERS STATEWIDE.

THAT'S CORRECT.

AND WE, WE WILL KNOW

[00:25:01]

SO, UM, WE, IT, IT IS GOING TO GO TO VOTERS.

I, I ABOUT 90, ALMOST 99% SURE.

I'M PRETTY SURE IT'S GONNA GO TO VOTERS MM-HMM .

SO, UH, VOTERS WILL HAVE A CHANCE TO HAVE THEIR VOICES HEARD IN NOVEMBER.

AND IF THIS FAILED AND COUNSEL STILL WANTED TO GO BACK AND, AND ELIMINATE THIS, UH, LEASE VEHICLE PROPERTY TAX, UM, WE CERTAINLY COULD, AS LONG AS WE DO IT BEFORE THE END OF FEBRUARY, WE CAN GET THAT INFORMATION TO THE APPRAISAL DISTRICT AND OKAY.

TAKING NOTICE APPROPRIATE.

WELL, I, I'D BE FINE WITH TAKING THAT PATH IF Y'ALL ARE, UH, MAY I COME, GO AHEAD.

UM, I LIKE, I LIKE WHAT YOU'RE THINKING.

ALSO, I, UH, I WOULD SHARE THAT, UM, YOU KNOW, DEAN DAN LIZIO AND I CO-SPONSOR THIS AND, AND I WISH HE WAS WITH US TODAY.

GET, I GET THAT HE CAN'T, UH, BE WITH US.

BUT, UM, WHEN WE, WHEN WE LOOK AT IT AGAIN, MY HOPE IS THAT HE WILL BE, AND AND THAT'LL DEFINITELY BE A LATER IN THE YEAR WILL BE A TIME MAYBE IN DECEMBER.

WHEN, WHEN IT MIGHT BE A GOOD TIME TO CONSIDER, BUT ALSO HAVE BEEN .

WELL, AND WE MAY NOT HAVE TO CONSIDER IT AT ALL.

IF I, IF I WERE, MY, MY THOUGHT ON YOUR COMMENT, MR. MAYOR, IS I WOULD PREFER TO DO IT NOW TO SHOW OUR RESIDENTS THAT WE ARE MAKING A GOOD FAITH EFFORT TO GET RID OF THIS ON THEIR BEHALF, TO LOWER THEIR PROPERTY TAXES AND, AND BE FIGHTING FOR THEM IN THAT.

AND THEN IF IT COMES BACK DOWN LATER, THAT'S FINE.

BUT MY PREFERENCE WOULD BE NOW FOR US TO ELECT TO DO AWAY WITH IT.

AND THE REASON THE STATE LEGISLATURE IS EVEN DOING THIS TO BEGIN WITH IS THAT OTHER, THAT CITIES ARE STILL CHARGING THIS TAX THAT THEY DON'T WANT IT TO BE CHARGED FROM THEIR CITIZENS.

SO MY PREFERENCE WOULD BE TO DO IT NOW AND, UH, EITHER WAY, IF IT DIDN'T PASS, WE WOULD STILL GIVE OUR RESIDENTS A TAX BREAK AT THIS POINT.

I'D LIKE TO ASK IF WE COULD DO SOME MORE UPDATED RESEARCH ON THOSE CITIES OFFICIAL RESEARCH.

UM, IS IT NINE, IS IT 13 STILL? AND THEN IF, UM, IT'S ALWAYS A LINE ITEM ON THE LEASE SOURCE LEASEE UNDER STATEMENT I'D LIKE TO RUN ALSO.

THAT, THAT MAY BE DIFFICULT.

DIFFICULT TO, TO GET THAT INFORMATION.

LIKE THEY'RE NOT REQUIRED TO PASS IT ON TO THE PERSON THAT LEASES THE VEHICLE.

UM, AND THERE'S ALL KINDS, I MEAN, WE PROBABLY HAVE A COUPLE HUNDRED, UH, LEASING COMPANIES ACCOUNTS THAT ARE, THAT ARE LISTED THERE AND ALL DIFFERENT LEASING COMPANIES THAT ARE INVOLVED.

WE COULD PROBABLY REACH OUT TO SOME OF THE BIGGER ONES IF THAT WOULD BE, IF, IF THAT, I WOULD LIKE TO SAY THAT.

I THINK, 'CAUSE THERE'S A FEW BIG ONES THAT WE COULD PROBABLY GET THAT ANSWER, UM, FROM, BUT THERE'S ALSO SOME THAT MAY BE ONE VEHICLE THAT'S LEASED THAT MM-HMM .

UM, THERE'S PROBABLY DOZENS OF, OF, I'M NOT LOOKING FOR BUSY WORK.

I WOULD JUST, MY, MY FEAR IS IF THE, THE LEASE OR STOPS PAYING THE TAXES AND THEY'VE GOT IT INTO THE LEASE, THE FULL LEASE PAYMENT IS NOT BROKEN OUT AND THEY JUST CONTINUE THE LEASE PAYMENT.

YOU KNOW, IIII HAVE A HUNCH THAT IF THEY'RE PAYING THE TAX THEN AND THEY PASS IT ON, THEN IT IS ON, IT HAS TO BE A MINE ITEM.

BUT I'D LIKE TO KNOW THAT FOR SURE.

AND I'D LIKE TO KNOW, 'CAUSE ONE OF THE THINGS ABOUT THE CITIES ARE DWINDLING DOWN, I CONSIDER IT KIND OF A CLEANUP IN ADDITION TO, UM, TAX RELEASE.

SO DOES, DOES GIVE THAT INFORMATION, DOES THAT HELP YOU WITH YOUR DECISION? THE NUMBER OF CITIES PROBABLY HELPS A LITTLE BIT.

OUR COMPAR COMPETITORS ALSO, I'M JUST THINKING ABOUT HOW MUCH WORK YOU MIGHT HAVE JUST CREATED.

DOES ANYBODY ELSE CARE ABOUT THOSE? I, I, I AGREE WITH YOU, MR. I DON'T KNOW WHY IT DOESN'T.

WE, I'M, THIS, IT MAKES NO, IT MAKES NO YEAH.

RELEVANCE TO MY DECISION.

SO, AND I'M SUPPORTIVE OF, OF DOING AWAY WITH IT.

I'M, I'M WHERE I'M, WHERE Y'ALL ARE ON THIS.

UM, I JUST, AND, AND JUST ONE, ONE REASON THAT I PREFER TO JUST LET IT GO THROUGH THE PROCESS, THROUGH THE LEGISLATURE IS JUST, IT'S JUST ONE MORE RESOLUTION THAT THE TOWN, THE STAFF DOESN'T HAVE TO HAVE TO WORK ON.

WELL, I THINK THAT'S AN EASY RESOLUTION, BUT, WELL, MY POINT IS, IT'S EASY FOR IF WE CAN DO SOMETHING, WHY WAIT ON SOMEBODY ELSE TO DO IT? BUT WE, BUT WE CAN'T.

WE, BUT WE CAN'T DO ANYTHING THAT'S GONNA TAKE, TAKE EFFECT ANY QUICKER THAN IF WE DID IT AT THE END OF THE YEAR.

NO, BUT WE CAN SHOW GOOD FAITH THAT WE, I THINK WE ARE BY HAVING A CONVERSATION.

I UNDERSTAND.

I, AND I AGREE WITH THAT, BUT MAKING A DECISION ON THE RESIDENT'S BEHALF I THINK IS, IS A BOOST TO THEM, IN MY OPINION.

BACK TO YOUR QUESTION ABOUT, UH, DO I NEED THAT INFORMATION? I DON'T NEED IT.

WHAT'D YOU SAY THERE? I'D LEAN MORE TO DO IT NOW.

IT'S JUST, UM, YOU'LL PROBABLY WOULDN'T CHANGE MY DECISION.

BUT IT'S, IT'S GOOD TO KNOW THE, I MEAN, IF WE GOT DATA ON THE SCREEN AND IT'S ALL DATA THAT'S, YOU KNOW, I I LIKE TO HAVE GOOD FRESH AIR TO MAKE DECISIONS ABOUT GOOD PRACTICE.

SO WHAT OTHER COMMENTS ON DOING SOMETHING NOW OR, OR WAITING? I'D LEAVE NOW.

[00:30:01]

YOU SAID WHAT? I WOULD LEAN MORE TO DO IT NOW.

NOT THAT WE'RE TAKING VOTE.

I'M FINE DOING AWAY WITH IT.

UM, AND I CAN WAIT, I CAN WAIT TO SEE HOW THINGS GO IF, IF WE ELECT TO DO AWAY WITH THIS, DO WE HAVE THE ABILITY JUST TO SAY THAT WE DON'T WANT TO COLLECT THIS TAX AND, AND KEEP IT FROM COMING TO WAIT UNTIL 27.

WE DON'T COLLECT TAX.

WELL, I UNDERSTAND THAT, BUT IT DO, IT'S BEING COLLECTED ON OUR BEHALF.

DO WE HAVE THE ABILITY TO SAY SOME WAY OF SAVING THEM ANOTHER YEAR'S TAX ON THAT 20 FOR THE UPCOMING YEAR? YES SIR.

THE BILLS HAVE ALREADY GONE OUT.

SO THERE'S, UNLESS STEALING, THERE'S NO, I DON'T THINK THEY APPROVE.

THIS WOULD HAVE A MECHANISM FOR THAT.

BUT, AND THAT'S MY QUESTION.

IS THERE A MECHANISM US JUST TO SAY WE DON'T WANT THAT OR HOLD, I UNDERSTAND I'VE ASKED APPRAISAL DISTRICT THAT, BUT THEIR, THEIR GENERAL, UH, DEMAND IS THAT WE GET IT TO THEM BEFORE THE END OF FEBRUARY IF WE'RE MAKING A CHANGE IN WHETHER IT'S, UH, YOU KNOW, AN EXEMPTION CHANGE OR THIS TYPE OF CHANGE.

UM, I COULD CHECK WITH THEM AND SEE IF, IF THEY COULD MAKE THAT CHANGE.

BUT THEY HAVE ALREADY STARTED SENDING THESE THINGS OUT TO THE PROPERTY OWNERS.

UM, SO THOSE PROPERTY OWNERS ALREADY, UH, IN RECEIPT OF, UH, THESE ASSESSMENTS SO WE CAN REACH OUT.

I THOUGHT THIS WENT AWAY WAY BACK WHEN I REALLY DID UNTIL I WAS TALKING TO PEOPLE AROUND TOWN THIS YEAR DURING THE CAMPAIGN.

AND THEY KEEP BRINGING THIS UP.

IT IT IS, IT, IT IS A SUBJECT THAT PEOPLE CARE ABOUT.

AND, UM, I HAD NO IDEA WE WERE STILL CHARGING THAT.

I I WHEN THE 2001, WHEN I STOPPED HAVING TO PAY THAT, BUT WHEN I LIVED SOMEWHERE WHERE THEY CHARGED PERSONAL PROPERTY TAX ON VEHICLES, I THOUGHT THAT WENT AWAY BACK THEN.

SO WHEN I FOUND OUT THAT THAT'S STILL BEING CHARGED BY US, AND THEN WHEN I FIND OUT JUST HOW FEW TOWNS ARE STILL DOING THAT, I, THAT WAS, I I'M IN FAVOR OF DOING AWAY WITH IT.

NOW, MARLON, UM, LIKE I SAID EARLIER, IF, IF WE DID IT NOW OR WE WAITED, UM, I'M OKAY WITH WAITING, BUT, BUT WHAT I'M HEARING IS DIRECTION TO DO IT.

UM, WELL, FROM, FROM SOME, WELL, FROM ONE TO THREE COUNTY.

WELL, I FEEL LIKE EITHER WE'RE GONNA DO IT OR THE THREE'S GONNA DO IT.

IF THE STATE'S GONNA DO IT, WE'RE ALL DOING IT ANYWAY.

AND IF THEY DON'T DO IT, WE STILL WANT TO DO IT.

IT, SO THAT'S WHY I'M SAYING WHY WAIT, WHY DON'T WE JUST BECAUSE WE WANNA DO IT.

DO WE HAVE TO MAKE THAT UP SOMEWHERE? THAT 0.31? WE IS IT SO ASK, WELL THAT'S ANOTHER DECISION.

WELL, THAT, THAT'S GONNA BE A BIG PART OF THE, THE BUDGET DISCUSSIONS.

WHAT WE DON'T KNOW YET WITH THE LEGISLATION, IT'S EXACTLY HOW THAT'S GONNA PLAY OUT, IF THAT'S GONNA IMPACT THE UPCOMING BUDGET YEAR OR NOT.

SO HOPEFULLY, AND WE DON'T KNOW THAT THIS WILL HAPPEN, WE CAN GET SOME GUIDANCE AFTER IT PASSED, AFTER THE GOVERNOR SIGNS IT OF WHAT THAT COULD MEAN.

BUT IT COULD MEAN, YOU KNOW, IT'S ABOUT A MILLION DOLLARS.

SO IT COULD MEAN THAT WE HAVE A, A LOT OF UNCERTAINTY AS WE PUT OUR BUDGET TOGETHER AS WE TRY TO ANTICIPATE WHETHER THAT LEGISLATION WILL PASS OR NOT.

SO THIS WOULD JUST BE IN THAT BUCKET OF US HAVING THOSE CONVERSATIONS, WHICH WILL BE COMING TO YOU IN THE NEXT COUPLE MONTHS.

THE ONE, THE ONE WE CAN FOR THE, FOR THE ALL FOR THE HUNDRED 25,000, ALL THE LAST SLIDE.

125.

I'M TALKING ABOUT THE LEGISLATION.

SO 125,000 MM-HMM .

THE, THAT'S FOR ALL BUSINESS PERSONAL PROPERTY IN TOWN.

WELL, I, AND I'M ONLY REFERRING TO PERSONAL PROPERTY.

LET THEM DO WHAT THEY WILL THE OTHER, THE PERSONAL YEAH.

VEHICLES IS WHAT I'M CONCERNED.

SO STEVEN, OTHER, I MEAN, I'M JUST GONNA ASK YOUR OPINION.

I KNOW YOU CAN'T GO BACK IN TIME WITH HISTORY, UH, OTHER THAN, THAN WE, WE CAN DO IT.

IS THERE SOMETHING I'M MISSING? WHY, WHY WE SHOULD BE DOING THIS? I MEAN, IS THERE WHY WE SHOULD CONTINUE TO ASSESS THIS? YES SIR.

YES SIR.

NO, BUT IT'S ONE OF THOSE THINGS THAT WAS A ONE TIME, YOU, YOU EITHER DO IT OR YOU DON'T AND YOU HAVE THAT OPPORTUNITY TO, UH, SO I CAN'T SAY WHAT, YOU KNOW, WAS PRESENTED BACK IN 2001 OR WHAT THE CITY COUNCIL DID, UH, WHAT YOUR THOUGHTS WERE, BUT OKAY.

UH, IT WAS A ONE TIME OPT-IN OR OPT OUT.

UM, AND ONCE YOU OPT OUT, YOU CAN'T OPT BACK.

YOU LOSE YOUR, YOU LOSE DROP.

AND I, I'M SURE IT'S COME UP IN BUDGET DISCUSSIONS WITH PREVIOUS COUNCILS AND IT'S PROBABLY BEEN A, LIKE ANYTHING YOU HAVE TO WEIGH THIS VERSUS OTHER COSTS VERSUS EVERYTHING ELSE.

NICE.

UM, THAT'S, THAT'S HOW WE'RE WORKING.

SO I THINK THERE'S UNANIMOUS SUPPORT FOR DOING IT.

IT IS JUST, DO WE, YOU'RE DOING SOMETHING.

IT'S, DO WE, I'VE HEARD THREE FOR NOW AND THREE FOR WAITING TILL AFTER THE ELECTION.

UM, I DON'T WANNA HAVE ANOTHER WORK SESSION.

SO WE WOULD LIKE TO JUST THE NEXT TIME WE BRING THIS FORWARD, ACTUALLY BRING THE ACTION.

I'D LIKE TO DO IT NOW.

[00:35:03]

ANYTHING ELSE ON THIS? THANK YOU, STEVEN.

SECOND QUARTER FINANCIAL REPORT.

THANK SIR MOORE.

STEVEN MORE? STEVEN MORE.

ALRIGHT, ITEM SIX

[b. Present and discuss the Town of Addison FY 2025 Second Quarter Financial Report.]

B PRESENTED.

DISCUSS THE TOWN OF ADDISON FY 2025.

STEVEN.

THANK YOU MAYOR.

COUNCIL, STEVEN, DEPUTY CHIEF FINANCIAL OFFICER, EXCUSE ME.

UH, AND THIS EVENING WE HAVE FOR YOU ARE SECOND QUARTER FINANCIAL REPORT.

UH, SO THIS COVERS THE PERIOD FROM OCTOBER 1ST THROUGH MARCH 31ST.

SO WE'RE 50% THROUGH OUR, THROUGH OUR FISCAL YEAR.

UH, SO GOING THROUGH SOME OF OUR, UH, HIGH LEVEL REVENUES AND EXPENDITURES.

UM, OVERALL PROPERTY TAXES ARE DUE IN JANUARY, SO WE BASICALLY COLLECTED, UH, 100% OF OUR PROPERTY TAXES JUST UNDER 100% RIGHT NOW.

NOW OUR NON-PROPERTY TAXES, WHICH ARE, UM, SALES AND MIXED BEVERAGE TAXES TRENDING ABOVE THAT 50% LINE.

UH, SO WE SHOULD SEE THAT COME BACK, UM, CLOSE TO WHERE WE BUDGETED, UH, FRANCHISE FEES, SERVICES, UH, SERVICE PERMITTING, LICENSE FEES, UH, FINES AND PENALTIES, ALL TRENDING, UM, AT OR ABOVE BUDGET RIGHT NOW.

SPECIAL EVENTS REVENUE, UH, THIS IS PRE-CASE ADDISON, SO THIS IS IN LINE WITH WHAT WE'VE SEEN IN PREVIOUS YEARS.

UH, WE'LL SEE A, A PRETTY GOOD JUMP ON THE NEXT ONE.

AND THEN OUR FOURTH QUARTER FINANCIAL REPORT, UH, WILL BE ALL ENCOMPASSING OF THE THREE MAJOR EVENTS.

UH, THEN WE'VE GOT OUR FUEL FLOWAGE FEES TRENDING, UH, 52% FOR THE YEAR.

AND THEN WATER AND SEWER, UH, CHARGES FOR A UTILITY FUND, UH, AT 47%, WHICH HALFWAY THROUGH THE YEAR WITH WINTER, UH, AND, AND, UH, UH, FALL MONTHS, THAT'S A, THAT'S A REALLY GOOD NUMBER TO BE AT SO FAR.

MOST OF THAT USAGE WILL COME, UH, IN THE SUMMER MONTHS, UH, WHEN THE IRRIGATION SYSTEMS ARE IN FULL SWING.

SO OVERALL REVENUE, UH, TRENDING, UM, POSITIVE COMPARED TO HISTORICAL TRENDS.

CAN WE ASK QUESTIONS AS WE GO ALONG? YES, SIR.

SO, UH, WHY IS AIRPORT, UH, JUST AT 20%? SOME OF THE OTHER ONES I, I KNOW THAT'S, UH, CYCL, UH, SEASONAL AIRPORT OPERATIONS, 20%.

UM, BUT YEAH, THAT'S UM, A COUPLE OF REASONS, UM, ON THE, ON THE EXPENDITURE SIDE, RIGHT? YOU KNOW, LET ME, LET ME CHECK THAT 'CAUSE I DON'T, YOU KNOW, I ACTUALLY DON'T THINK THAT'S CORRECT.

IT'S GONNA BE A TIMING.

LET ME CHECK THAT.

SORRY ABOUT THAT, PLEASE.

UM, YEAH, I DON'T THINK THAT'S CORRECT BECAUSE THE OPERATING, WE DID HAVE A BIG BUDGET FOR CAPITAL IMPROVEMENTS WITHIN THE AIRPORT FUND, BUT, UH, THAT BUDGET SHOULD BE HIGHER IN THAT EXPENDITURE.

ACTUALLY NOT SHOWING, LET ME DOUBLE CHECK.

I APOLOGIZE.

UH, GOING THROUGH THE GENERAL FUND, UH, WE'RE JUST UNDER 48% ON THE EXPENDITURE SIDE.

UH, HOTEL FUND, WE'RE AT ABOUT 27%, UH, THROUGH, UM, MARCH.

BUT AGAIN, WE ARE A MAJOR SPECIAL EVENT, WHICH YOU MAKE UP A GOOD PORTION OF THAT BUDGET.

UM, ECONOMIC DEVELOPMENT, A LARGE PORTION OF THEIRS IS RELATED TO INCENTIVES AND WHICH HAD NOT BEEN PAID OUT.

SO THERE'S ABOUT 30% OF THE AIRPORT.

I'LL DOUBLE CHECK THAT AND GET YOU, I ANSWER ON THAT.

AND THEN UTILITY OPERATIONS WE'RE TRENDING JUST BELOW 50%, UH, SO FAR ON THE HOTEL FUND.

ISN'T OCTOBER THUS FAR BEING THERE, OR, UH, IT IS NOT.

IT'S NOT, WASN'T IT IN OCTOBER? IT'S IN SEPTEMBER, SO IT WOULD'VE BEEN IN MASS THIS YEAR.

SO WE CAN GET YOUR FOURTH QUARTER REPORT.

SO AGAIN, SEPTEMBER ION, THAT'S CORRECT.

STEVE, REAL, REAL QUICK, DARREN, I WANNA MAKE SURE I UNDERSTAND YOUR QUESTION.

YOUR, IS YOUR QUESTION, WHY IS THE AIRPORT EXPENDITURE SO LOW? SUCH A GREAT, SUCH A GREAT LEVEL, SUCH A GRADE LEVEL? YES, I THINK IT'S OKAY.

I WANNA MAKE SURE OPERATIONS, UNLESS THERE'S SOME PLANNED EXPENDITURES IN OPERATIONS.

UH, BUT OTHERWISE IT SEEMS LIKE IT SHOULD BE FAIRLY CLOSE TO THE ANNUAL, SO I'LL GET YOU TO THE CORRECT GO.

OVER TO RIGHT, UH, OFFICE OCCUPANCY, UH, DOWN SLIGHTLY YEAR OVER YEAR.

UH, ECONOMIC INDICATORS, UH, UNEMPLOYMENT, UH, THE LAST 12 MONTHS YOU CAN SEE PRETTY, UH, PRETTY, UM, STEADY THERE, ABOUT 4% AND BELOW.

UM, GOING TO THE RIGHT ARE HOTEL REVENUE PER AVAILABLE ROOM.

UH, THAT'S BASICALLY OUR OCCUPANCY RATE TIMES THE AVERAGE ROOM RATE, AND THAT'S HOW MUCH REVENUE IS BEING GENERATED PER ROOM.

UH, WE WANT THAT NUMBER TO BE ABOUT, UH, 65 TO $70 TO UH, MAKE SURE FUNDING, UH, THE HOTEL FUND, UH, BASED ON THE EXPENDITURE LEVEL.

AND THEN OUR OCCUPANCY INDICATORS

[00:40:01]

UM, NOT UNEXPECTED, BUT STILL, UH, JUST UNDER 80%, UH, RETAIL OCCUPANCY UP 0.2% YEAR OVER YEAR.

SO VERY STRONG.

ALMOST 90, 96% OCCUPANCY THERE.

UH, THE ADDISON HOTEL STATISTICS, LOTS OF, LOTS OF INFORMATION THERE.

UH, ROOM RATES, UH, REVENUE PER AVAILABLE WITHIN THE OCCUPANCY.

YOU CAN SEE HOW IT'S, EVERYTHING'S KIND OF CYCLICAL AND, UM, SOME MONTHS ARE PRETTY, PRETTY STEADY YEAR OVER YEAR.

UH, FOR INSTANCE, UH, NOVEMBER AND DECEMBER ARE TRADITIONALLY PRETTY LOW, UH, JUST BECAUSE OF THE HOLIDAYS, LESS BUSINESS TRAVEL.

SO COMING OUT OF THAT, WE EXPECT, UH, LARGER NUMBERS COMING OUT IN SPRING AND SUMMER.

ON THAT SLIDE, UM, I LIKE, I DO LIKE TO SEE FIVE QUARTERS LIKE YOU HAVE UP THERE.

BECAUSE YOU CAN SEE MORE THAN JUST A SINGLE.

UM, I'D LIKE TO SEE THAT ON, ON MOST OF THE, THE CHARTS.

I DON'T KNOW IF THAT HELPS THAT WE CAN CONSIDER.

'CAUSE YOU CAN SEE THAT KIND OF THE LEADING TREND.

YEAH, WE GOT THAT ON THESE THREE CHARTS.

UM, FOR THE ECONOMIC INDICATORS CERTAINLY.

UH, AND THEN HOTEL INDICATORS, OCCUPANCY, A LITTLE DOWN YEAR OVER YEAR RETAIL OCCUPANTS OR, UM, THE PERCENTAGE THERE, A LITTLE DOWN YEAR OVER YEAR, BUT NOT SIGNIFICANTLY.

WHILE, WHILE WE'RE STILL, I APOLOGIZE, THE HOTEL OCCUPANCY UP HERE, THE REVENUE FOR ROOM AVAILABLE MM-HMM .

WHAT IS INCLUDED IN THAT AS FAR AS NOW WE'RE, WE'RE TALKING EVERYTHING FROM OUR BETTER HOTELS DOWN TO THE EXTENDED STAYS.

THE MOTEL SIX, THAT'S CORRECT.

ALL OF THAT, CORRECT.

YEAH, I THINK WE HAVE 21 OUT OF 22 THAT REPORT.

SO I THINK WE HAVE ONE THAT DOESN'T REPORT, SO IT'S UP TO THEM IF THEY REPORT TO THE COMPANY THAT WE USE.

BUT CAN I, WHICH ONE THAT IS, UH, I'D HAVE TO GO CHECK.

UM, UH, I DON'T HAVE THAT, BUT THIS DOES INCLUDE THE EXTENT STACK IS WHAT I WAS TRYING TO, THEY, THEY SURVEY EVERY HOTEL IN TOWN.

UH, YOU GET A RESPONSE FROM, FROM THEM, BUT I KNOW THAT WE HAVE ONE THAT TRADITIONALLY IS NOT RESPONDENT.

I'M BEING ARRESTED TO KNOW WHICH ONE THAT IS.

DO YOU KNOW, UH, UH, WE, NO, NOT OFF THE TOP OF MY HEAD.

I CAN, YES, BUT I UNDERSTAND THAT WE DON'T WANT TO GUESS.

UH, I WILL JUMP IN.

I LOOK BACK AT THE FIRST QUARTER REPORT AND THE, SO I THINK IT WAS THE HOLDOVER ON THE AIRPORT NUMBER.

IT WAS 1.25 IN THE AIRPORT FUND EXPENDITURES IN THE FIRST QUARTER.

SO I THINK WE JUST HELD THAT NUMBER OVER.

SO WE'LL SEND OUT AN UN UPDATED.

, NOT THAT THE, UM, CAN WE GO BACK ONE HOTEL, SEE, IS IT 64% AND THEN WHERE THE ARROW DOWN SAYS IT'S A 58%, ARE THOSE TWO DIFFERENT INDICATORS, OR WHY IS THAT NOT THE SAME? YOU SEE WHAT I'M TALKING ABOUT RIGHT BELOW THE THREE LITTLE ARROWS, HOTEL INDICATORS, IT SAYS HOTEL OCCUPANCY, THAT 64% PERCENT, BUT THEN BELOW IT IT SAYS OCCUPANCY AT 58%.

IS THAT ? UH, 64% AND THE DECREASED NUMBER IS DIFFERENT TO 1.9 0.8.

I I SEE THAT.

UH, YEAH, LET ME, LET ME, I'M SORRY ABOUT THAT.

LET ME, LET ME CHECK ON THIS, UM, ON THAT ONE, UM, WE HAVE A DIFFERENT FORMAT ON THIS ONE, SO I APOLOGIZE.

UH, LET ME, LET ME, LET ME DOUBLE CHECK THAT I'LL GET THAT INFORMATION TO YOU AS WELL, STEVEN, ON, ON THAT CHART.

UM, AND MAYBE YOU CAN'T ANSWER THIS, BUT AS FAR AS TRENDS THAT YOU'RE SEEING, I MEAN, WE CAN LOOK AT THE FIRST TWO QUARTERS AND SEE THAT, YOU KNOW, MONTH OVER MONTH WE'VE EXCEEDED THE PREVIOUS 12 MONTHS.

BUT, UM, I MEAN, AS WE ENTER INTO THE BUDGET SEASON, I MEAN TRENDS, WHAT YOU'RE HEARING FROM OTHER CITIES, WHAT KIND OF OUTLOOK YOU MIGHT BE SEEING.

DO YOU, DO YOU ANTICIPATE ANY SLOWDOWN IN SALES TAX OR CAN YOU SALES TAX, AND I'VE GOT SOME, SOME SLIDES COMING UP ON SALES TAX.

SALES TAX FOR US HAS BEEN PRETTY STRONG THIS YEAR.

IN FACT, PROBABLY UP TO THIS POINT, OUR BEST YEAR EVER.

UM, SOME OF THE OTHER CITIES, OUR COMPARISON CITIES ARE SEEING SOME DECREASE.

UM, BUT I DON'T GET THE DETAILS OF THEIR SALES TAX THE WAY I GET THE DETAILS FOR, FOR HOURS.

UM, SO THEY COULD HAVE THINGS SUCH AS MAYBE THEY HAD BUSINESS THAT MOVED TO A NEIGHBORING CITY OR, UH, SOME MAJOR TAX PAYERS THAT LEFT OR MAYBE THEY HAD SOME BIG REALLOCATION TO OTHER ENTITIES THAT AFFECTED THEM NEGATIVELY.

SOME OF OUR LEGAL CITIES ARE NOT GENERATED IN TOTAL AS MUCH AS THEY HAD .

UM, SO WE DON'T GET THAT LEVEL OF DETAIL FOR THE, FOR THE OTHER CITIES.

UH, BUT WE HAVE SEEN THAT

[00:45:01]

AND THEN OFFICE OCCUPANCY YEAR OVER YEAR IS DOWN SLIGHTLY.

WHAT HAS THAT TREND BEEN THE PREVIOUS YEARS? UM, IT'S BEEN RIGHT AROUND THAT 80% LEVEL.

SO IT'S BEEN PLUS OR MINUS SLIGHTLY INTO THE 80%.

I THINK THE HIGHEST WE'VE HAD IS, UM, SINCE REALLY COVID HAS BEEN ABOUT 82%.

UH, NOW THAT DOESN'T MEAN THAT THOSE FOLKS ARE ACTUALLY IN THE OFFICE, RIGHT? IT JUST MEANS THAT THEY'RE PAYING, THEY'RE PAYING RENT, RIGHT? YEAH.

SO IT'S TRENDED, YOU KNOW, IT HASN'T GONE DOWN AS MUCH AS SOME OTHER CITIES HAVE SEEN.

UM, IT'S BEEN RIGHT AROUND THAT PRETTY SYSTEM.

OKAY, THANK YOU.

AND THEN THERE IS SOME SALES TAX INFORMATION HERE ON THIS SLIDE.

SO, UH, FOUR OF OUR NEIGHBORING CITIES, CARTON FARMERS BRANCH, RICHARDSON, UM, WE HAVE GONE UP ABOUT 11% YEAR OVER YEAR.

UH, RICHARDSON HAS GONE UP 9%, CARTON 3% AND FARTHER BRANCHES SEE, UH, A SLIGHT DECREASE YEAR OVER YEAR, UH, ECONOMIC DEVELOPMENT INCENTIVE.

SO THERE'S SEVEN INCENTIVE AGREEMENTS.

UM, ONLY 16,000 HAS BEEN PAID OUT ON THOSE SO FAR.

I CAN TELL YOU THAT THE BIG ONE VILLAGE ON THE PARKWAY MAKES UP ABOUT 75% OF THAT TOTAL WAS PAID OUT IN APRIL.

SO YOUR NEXT REPORT, WE'LL SEE, SEE THAT PAYMENT THERE.

UH, AND THEN SOME PERMIT, UM, ACTIVITY, UH, UP AT THE TOP RIGHT, YOU CAN SEE, UM, THROUGH HALF OF THE YEAR, IF YOU DOUBLE THOSE DOWNWARDS WILL BE TRENDING, UH, SIMILAR WHERE WE'VE BEEN THE LAST THREE FISCAL YEARS AND THEN QUARTERLY YEAR OVER YEAR.

UH, THIS, THIS QUARTER FOR 2025, UH, IS IN COMPARABLE RANGE OF THE, UH, PREVIOUS THREE FISCAL YEARS.

AND THEN THIS IS SHOWING THE LAST THREE YEARS OF SALES TAX COLLECTIONS.

WE'VE ACTUALLY EXCEEDED, UH, THE PRIOR TWO FISCAL YEARS FOR EVERY MONTH SO FAR THIS YEAR.

UM, I CAN TELL YOU THE ONE WE GOT FOR APRIL WAS SLIGHTLY BELOW, UM, LAST FISCAL YEAR, BUT THAT'S STILL A PRETTY STRONG NUMBER.

UM, ONE ANOMALY WITHIN THIS SLIDE IS AUGUST, UH, OF LAST YEAR.

WE VERY LARGE, UM, AUDIT REALLOCATION TO US.

SO, UH, UNLESS SOMETHING LIKE THAT HAPPENS AGAIN, WE WON'T GET $2.2 MILLION COMING IN IN SALES TAX.

BUT, UH, THOSE ARE THE TYPES OF THINGS THAT AFFECT A LOT THESE MONTHS.

BUT, UH, OVERALL SALES TAX IS LOOKING VERY POSITIVE FOR US SO FAR.

DO YOU BREAK OUT THOSE NUMBERS LIKE RETAIL SALES TAX VERSUS WHAT LIKE A BUSINESS MIGHT GENERATE? UH, I DO AND I HAVE THAT ON THIS SLIDE.

OTHER DEPARTMENTS ARE TRENDING, UH, IN LINE WITH, UH, THEIR HISTORICAL TREND.

UM, SO THIS IS BASICALLY MONTH OVER MONTH.

AS I MENTIONED.

WE HAVE EXCEEDED EVERY MONTH SO FAR THIS YEAR.

UM, SOME, UH, IF YOU LOOK AT FEBRUARY SALES, WHICH THOSE WERE, WERE VERY LARGE INCREASES JANUARY, VERY LARGE YEAR OVER YEAR.

UH, BUT REALLY WHAT WHAT MAKES, UM, YOU KNOW, OUR SALES TAX SO RESILIENT IS THAT DIVERSITY THAT'S IN THAT, UM, ECONOMIC, UH, CATEGORY BREAKDOWN.

SO OUR TWO TOP CATEGORIES, UH, ARE ACCOMMODATIONS OF FOOD SERVICE, WHICH ONE WOULD EXPECT.

UH, AND THEN WE HAVE, UM, WHOLESALE TRADE, UM, BOTH OF THOSE, I'M SORRY, OTHER NOT WHOLESALE TRADE.

BOTH OF THOSE ARE AT 16% AND OTHER AND NOT PROVIDED.

THOSE ARE CATEGORIES WHERE INDIVIDUALLY IT'S NOT A VERY LARGE AMOUNT.

SO THERE'S A LOT OF LITTLE CATEGORIES WITHIN THOSE TWO.

UH, THEN WE HAVE OUR, UH, RETAIL AT 14%.

AND THOSE THREE, UM, THOSE FOUR GROUPS THERE MAKE UP, UH, ABOUT 65% OF THE TOTAL SALES TAX.

BUT ALSO WE HAVE WHOLESALE TRADE CONSTRUCTION, UH, INFORMATION, UM, PROFESSIONAL SCIENTIFIC, ALL OF THOSE MAKING UP A PRETTY SIGNIFICANT PORTION, UM, OF THE SALES TAX PIE.

AND THEN HERE'S A BREAKDOWN OF THE OVERALL DETAIL OF THE GENERAL FUND REVENUE.

UM, OVERALL WE'RE AT 77.4%, UH, THROUGH THE, UH, FIRST HALF OF THE YEAR.

UH, AGAIN, MOST OF THAT PROP, MOST OF THAT'S RELATED TO PROPERTY TAX, WHICH HAS VIRTUALLY ALL BEEN COLLECTED SINCE IT'S NEW JANUARY 31ST.

NOW ON THE EXPENDITURE SIDE, UH, ONE NOTE HERE, AND THEN THE CITY COUNCIL MADE A, UH, AN UPDATE TO THIS OF THE BUDGET AMENDMENT THAT WAS APPROVED AT THE END OF APRIL.

UH, WITHIN THE FINANCE DEPARTMENT I JUST MENTIONED THAT LARGE SALES TAX RECOVERY WE HAD IN AUGUST OF LAST YEAR, UH, WE USED A SERVICE FOR THAT.

UH, THEIR CONTINGENT FEE WAS PART OF, UH, UH, OUR EXPENDITURES IN THE FINANCE DEPARTMENT THIS YEAR.

SO COUNCIL HAS ALREADY AMENDED THAT BUDGET.

SO YOUR NEXT, UH, REPORT THAT WILL, UH, NOT, SHOULD NOT BE YELLOW ANYMORE, UM, OVERALL EXPENDITURES ARE AT 47.6%.

UM,

[00:50:01]

STEVEN, A QUICK QUESTION ON THE PREVIOUS SLIDE.

THE DELINQUENCIES FOR TAXES YES.

THAT'S, THAT'S SORT OF BEEN TICKING UP COMPARED TO LAST YEAR.

HOW DO YOU FEEL ABOUT THAT? IS IT COLLECTIBLE? UH, SO THOSE AREN'T COLLECTIONS.

THOSE ARE TECHNICALLY REFUNDS.

NOW, SOME OF THEM WILL BE DELINQUENT TAX COLLECTIONS, BUT THE MAJORITY OF THAT, AND THE REASON THAT IT'S NEGATIVE IS BECAUSE, UH, THE LARGE PROPERTY OWNERS, APARTMENTS, OFFICE BUILDINGS ALL SUE THE APPRAISAL DISTRICT AND IT DOESN'T GET, UM, SETTLED UNTIL THE FOLLOWING YEAR.

SO IT'S USUALLY REFUNDS TO THOSE PROPERTIES THAT'VE ALREADY PAID THEIR TAXES.

UM, SO PREVIOUS YEAR THEY WOULD'VE SHOWN UP UNDER CURRENT TAXES.

THEY PAID, THEY GOT A REDUCTION IN THEIR VALUE BECAUSE THEY SUED THE APPRAISAL DISTRICT AND THEN THEY DIDN'T REQUEST IT.

I SEE.

SO THERE'S A LOT OF CASES STILL PENDING.

UM, IT'S A COMBINATION OF A LOT OF THINGS WHY THEY DON'T GET THROUGH THE SYSTEM QUICK ENOUGH.

UM, BUT THAT, THAT IS ALL DEPENDENT ON REALLY THE, THE APPRAISAL DISTRICT, THE PROPERTY OWNER, AND THEN THEY HAVE TO GET BEFORE JUDGE GOT IT.

WHICH I THINK IS THE BIGGEST PROBLEM.

I THANK YOU.

I WOULD, I WOULD JUST, I WOULD ADD ON THAT OBVIOUSLY THAT IS KICKED UP SIGNIFICANTLY OVER THE PAST NUMBER OF YEARS AND HAS BECOME A, A BIG PROBLEM FOR THE APPRAISAL DISTRICTS TO GET THROUGH THOSE.

BUT THEN FOR US TO TRY TO ANTICIPATE WHAT REVENUES WE'RE GOING TO GET GOING TO RECEIVE.

SO IN THE BUDGET DISCUSSIONS, WE'LL TALK ABOUT THAT OF HOW DO WE PROJECT OUR, OUR PROPERTY TAX REVENUE AND TRY TO ACCOUNT FOR SOME OF THAT UNCERTAINTY.

UM, SO IT'S A GOOD PRIMER FOR THAT DISCUSSION.

CAN I ASK ONE OTHER QUESTION ON THE INTEREST, UM, EARNINGS, IT'S ABOUT A THIRD, WHAT IT WAS THE YEAR BEFORE.

DID WE HAVE INTEREST RATES GONE DOWN THAT MUCH OR DID WE HAVE LESS MONEY THAN NO, AND I DON'T WANT TO GET TOO, TOO ACCOUNTANTS TALK SOUNDING I GUESS, BUT, UM, SO WHAT'S IN THE ACTUAL YEAR? SO WE'RE ACTUALLY REQUIRED TO, UM, MEASURE, UH, THE INVESTMENT PORTFOLIO OF WHAT WE COULD GET ON THE OPEN MARKET FOR IT.

SO IN THE ACTUAL YEAR, THAT INCLUDES AN IN A BIG INCREASE IN THE MARKET VALUE.

AND I THINK YOU ASKED THAT QUESTION IF WE'RE GONNA SEE, UM, THE MARKET VALUE OF OUR INVESTMENT PORTFOLIO GO BACK UP.

WELL, IT HAS GONE BACK UP BECAUSE INTEREST RATES HAVE COME DOWN.

WE'VE HAD SOME THINGS THAT HAVE MATURED THAT WERE PURCHASED IN A LOWER INTEREST RATE.

SO THERE WAS A BIG, UM, INCREASE IN BASICALLY THE MARKET VALUE OF OUR INVESTMENT PORTFOLIO, WHICH ACCOUNTS ON BEHALF OF THAT $2 MILLION THAT, THAT WE RECORDED LAST YEAR.

DOES THAT MAKE SENSE? YEAH.

UM, THEIR PRINCIPAL PAYMENT ON THEIR DEBT SERVICE, WHICH IS A LARGE PORTION OF THEIR BUDGET.

UH, AND AGAIN, I WENT THROUGH THE EXPENDITURES, BUT WE'RE 47.6% IN THE GENERAL FUND, UH, THE HOTEL FUND.

AGAIN, WE HAVEN'T GOT TO OUR SPECIAL EVENTS SO FAR THIS YEAR.

UH, SO WE'RE AT ABOUT 38.4% OF OUR REVENUE, UH, EXPENDITURES, WHICH A LOT OF THOSE ARE RELATED TO SPECIAL EVENTS.

WE'RE AT 27.4%.

UH, ECONOMIC DEVELOPMENT FUND, AGAIN, IT'S, UH, BASED ON PRIMARILY PROPERTY TAXES.

SO THEY'VE COLLECTED BASICALLY ALL OF THEIR REVENUE FOR THE FISCAL YEAR.

UM, AND THEIR EXPENDITURES ARE, ARE ONLY AT 29.4%, A LARGE AMOUNT OF THAT WITHIN CONTRACTUAL SERVICES RELATED TO THE VILLAGE OF THE PARKWAY INCENTIVE.

SO YOU'LL SEE THAT ON THE FOLLOWING REPORT.

UH, AND THEN THE AIRPORT FUND, AND THIS IS GONNA BE THE CORRECT OPERATING EXPENSES WITHIN THE AIRPORT FUND ON THE DETAIL.

SO WE'RE ACTUALLY AT 48.4%, UH, ON THE AIRPORT FUND.

UM, SORRY THAT DIDN'T TRANSLATE OVER TO THE, TO THE SUMMARY PAGE.

UM, SO OPERATING REVENUE, UM, SAYS 38.6%.

WE BUDGETED A VERY LARGE, UH, GRANT PAYMENT TO COME FROM THE BIPARTISAN INFRASTRUCTURE LAW TO COVER SOME OF THOSE CAPITAL PROJECTS BELOW.

UM, EXCLUDING THAT OUR REVENUE'S TRENDING, UH, ALL OF THEM OVER 50% SO FAR.

AND WE DO ANTICIPATE GETTING SOME OF THAT GREAT FUNDING THIS FISCAL YEAR AND ALL IN FISCAL YEAR.

UH, AGAIN, UH, TRENDING, UH, PRETTY, PRETTY STRONG WITHIN THE AIRPORT FUND.

UH, AGAIN, THOSE OPERATING EXPENSES WERE, WERE JUST OVER 3 MILLION INSTEAD OF, UH, AND THEN OUR UTILITY FUND, 47.8% ON REVENUE, WHICH IS, UH, VERY STRONG FOR, UH, FIRST TWO QUARTERS.

UM, ON THE EXPENDITURE SIDE, 49.6.

UM, A LARGE PORTION OF THAT IS RELATED TO OUR DEBT SERVICE, WHICH MY PRINCIPLE IS DATED IN FEBRUARY.

SO, UM, OVERALL, UH, THE EXPENDITURES ARE TRENDING, UH, IN LINE WITH OUR BUDGET.

AND THEN OUR STORMWATER UTILITY, UH, EXCEEDING REVENUE SLIGHTLY SO FAR, 52.5%, UH, EXPENDITURES AT 53%.

AGAIN, THEY PAID,

[00:55:01]

UH, PAID THAT IN FEBRUARY.

SO, UM, EXCLUDING THAT WOULD BE, UH, UNDER THAT 50% THROUGH THE YEAR.

AND THEN HERE'S A DETAIL OF OUR HOTEL OCCUPANCY TAX COLLECTIONS.

UM, YOU CAN SEE WE BROUGHT IN ABOUT $1.3 MILLION.

WE DO HAVE ONE HOTEL AT LEAST IS NOT, UH, PAID PER THE QUARTER AND WE'VE BEEN WORKING WITH THEM TO, TO UH, ALLEVIATE THAT AND GET THEIR PAYMENTS IN.

BUT UM, EVERY OTHER HOTEL THERE IS ACCORDING, UH, A SLIGHT DECREASE YEAR OVER YEAR.

UM, BUT NOT SIGNIFICANT IN THE OVERALL.

UH, 1.3 MILLION IS A PRETTY STRONG QUARTER, UH, FOR THE TIME TODAY.

AND THEN OUR INVESTMENT REPORT SUMMARY, UH, THERE'S AN INVESTMENT REPORT, UH, IN THE AGENDA AS WELL.

UH, 1.4 1,447,000 IN INVESTMENT REVENUE, UH, PER THE QUARTER, AN INCREASE, UH, FROM 1,328,000 IN THE PREVIOUS QUARTER.

UM, AND ONE OF YOUR QUESTIONS, UH, RELATED TO, YOU KNOW, WHY OUR INTEREST REVENUE WENT UP SO MUCH, UM, ON THIS PAGE, IF YOU LOOK AT THE BOOK VALUE AND THE MARKET VALUE AS THAT MARKET VALUE GETS CLOSER TO THAT BOOK VALUE, THAT'S INVESTMENT REVENUE TO US AS WELL.

SO THAT'S, THAT'S, UH, WHY I'VE KNOWN SO HIGH LAST YEAR.

UM, BUT ALL OF OUR INVESTMENTS WERE MADE WITHIN OUR POLICY ON THE INVESTMENT ACT.

UM, OUR WEIGHTED AVERAGE YIELD TO MATURITY CONTINUES TO GO UP SLIGHTLY.

UM, SO ALSO TO ANSWER YOUR QUESTION, INTEREST RATES FOR US HAVE NOT GONE DOWN, ARE ACTUALLY GOING UP SLIGHTLY.

UM, SO OVERALL THIS HAS BEEN THE LEAST FOR THE LAST FEW YEARS OF PRETTY SIGNIFICANT SOURCES.

STEVE, CAN I JUMP IN HERE REAL QUICK? SO WE GET A LOT OF QUESTIONS THAT YOU CAN IMAGINE REGARDING DEBT.

HOW MUCH DEBT, UM, WE PAYING ON THAT DEBT.

UM, WHAT WE DON'T GET IS, I DON'T GET ANY QUESTIONS ABOUT HOW MUCH DO WE HAVE IN INVESTMENTS, RIGHT? UM, SO WE'VE GOT ALMOST 156 MILLION CORRECT.

AND THEN WE'RE A RATED AVERAGE YIELD IN MATURITY IS ALMOST 3.7%.

SO, UM, THAT'S THE OTHER PART OF THE STORY WHEN, WHEN WE'RE TALKING ABOUT THE WHOLE PICTURE, RIGHT? CORRECT.

ANY OF THAT'LL, HAPPY TO ANSWER ANY ADDITIONAL QUESTIONS.

ANY OTHER OTHER QUESTIONS? ALRIGHT, ON, ON ALL OF OUR DEBT, WHAT'S THE, UH, AVERAGE, UM, INTEREST RATE ON ALL OF OUR DEBT? IT'S A LOT LOWER THAN 3.7% .

THAT'S, THAT'S ONE OF THE THINGS I WANTED TO DO.

THREE POINT.

UM, I COULD GET THAT FOR YOU.

UM, I DON'T THINK I PLUGGED IN THE, THE STATE INFRASTRUCTURE BANK LOAN THAT WE, WE JUST GOT LAST YEAR, THAT WAS A 2.51%.

UM, BUT WE HAD DONE A LOT OF BOUNDARY FUNDINGS, UH, THROUGH, UH, THE FIRST COUPLE OF YEARS OF COVID.

SO A LOT OF THOSE THAT WE WERE GETTING WERE IN THE 1% RANGE.

UM, I THINK THAT, I DON'T, I'M NOT EVEN SURE WE HAVE, UH, A, A BOND ISSUANCE ON OUR BOOKS THAT IT'S OVER 3.7% BY ITSELF.

SO WELL BE HAVING A CIP PRESENTATION AND A COUPLE MEETINGS IN THE BUDGET PROCESS AND WE CAN PROVIDE THAT.

LET FOR SURE YOU HAVE THAT NUMBER UP THAT I'LL MEMORIZE.

ALRIGHT, THANK YOU STEVEN.

SO THAT'S ALL WE'VE GOT FOR THE, UH, WORK SESSION.

IT IS, UH, SEVEN 15.

WE'LL TAKE A 10 MINUTE RECESS AND THEN WE'LL UH, RECONVENE AND COUNT THE CHECKERS.

I'M GLAD YOU SAID THAT.

AND PRESENTATIONS TWO A IS CITY MANAGER'S ANNOUNCEMENTS.

IT IS NOW 7 23 AND WE WILL RECONVENE AFTER OUR BRIEF RECESS THERE.

AND GO INTO OUR REGULAR MEETING AND WELCOME EVERYBODY.

GOOD EVENING.

IT IS, UH, WE DO STILL HAVE A QUORUM OF THE COUNCIL PRESENT, AND AS ALWAYS, WE'D LIKE TO START OUR MEETINGS WITH THE PLEDGE TO BOTH OF OUR FLAGS.

SO IF YOU WOULD PLEASE RISE AS YOU'RE ABLE.

I PLEDGE ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA AND TO THE REPUBLIC FOR WHICH IT STANDS.

ONE NATION UNDER GOD, INDIVISIBLE, WITH LIBERTY AND JUSTICE FOR ALL.

HONOR THE TEXAS FLAG FLAG.

I PLEDGE ALLEGIANCE TO THE TEXAS ONE STATE UNDER GOD.

ONE INDIVISIBLE.

ALL RIGHT, VERY GOOD.

WE WILL MOVE RIGHT INTO ITEM NUMBER TWO, PROCLAMATIONS

[a. City Manager's Announcements]

TWO B IS EMPLOYEE RECOGNITION.

AND THEN WE'LL GO INTO TWO C WHEN WE, UH, GET THROUGH WITH THOSE TWO ITEMS. SO I'LL, UH, TURN IT OVER TO DAVID.

THANKS MAYOR.

HAVE A FEW ANNOUNCEMENTS TONIGHT.

UH, FIRST ADDISON

[01:00:01]

RECENTLY RELEASED THE NEW DRAFT COMPREHENSIVE PLAN, AND WE ARE EXCITED TO GET THE COMMUNITY'S FEEDBACK.

PLEASE JOIN CITY STAFF TOMORROW MAY 28TH FROM SIX TO 8:00 PM AT THE STONE COTTAGE TO LEARN TO LEARN MORE ABOUT THE PLAN AND ENJOY A COMPLIMENTARY FROZEN TREAT WHILE SUPPLIES LAST.

IF YOU CAN'T ATTEND THE MEETING, YOU CAN, YOU CAN SHARE YOUR COMMENTS ONLINE@ADVANCEADDISON.COM THROUGH JUNE 2ND.

NEXT, ADDISON IS LAUNCHING A NEW SINGER SONGWRITER SHOWCASE AT ADDISON CIRCLE PARK THIS THURSDAY, MAY 29TH.

THIS NEW SERIES WILL TAKE PLACE ON THE LAST THURSDAY OF THE MONTH FROM MAY THROUGH AUGUST.

FIND OUT MORE@ADDISONTX.GOV.

AND FINALLY, THE NEW TOWN.

THE NEW TOWN WIDE GARAGE SALE IS SATURDAY, MAY 31ST THROUGH JUNE 1ST.

INSTEAD OF A SINGLE CENTRAL LOCATION, WE'RE PROMOTING INDIVIDUAL GARAGE SALE SALES AROUND TOWN ON ONE WEEKEND.

YOU CAN PLAN YOUR ROUTE USING AN INTERACTIVE DIGITAL MAP THAT FEATURES REGISTERED SALE LOCATIONS, HOURS OF OPERATION, AND A BRIEF DESCRIPTION OF ITEMS AVAILABLE AT EACH STOP.

THE MAP WILL BE AVAILABLE@ADDISONTX.GOV SLASH GARAGE SALE ON WEDNESDAY, MAY 28TH.

AND WE'RE EXCITED FOR THIS CHANGE AND TO SEE HOW THE COMMUNITY RECEIVES IT NEXT TO OUR

[b. Employee Recognition]

EMPLOYEE RECOGNITION, I AM GOING TO INVITE ASHLEY UP TO, TO RECOGNIZE THE ONE AND ONLY FELICIA.

OH, AH, GOOD EVENING, MAYOR AND COUNCIL.

I'D LIKE TO INTRODUCE TO YOU, NOT THAT YOU DON'T ALREADY KNOW HER, FELICIA CRAIGHEAD.

FELICIA HAS SERVED AS THE EXECUTIVE ASSISTANT FOR THE CITY MANAGER'S OFFICE SINCE JANUARY OF 2023, BORN AND RAISED IN RICHMOND, VIRGINIA.

SHE'S A PRODUCT OF THE RICHMOND PUBLIC SCHOOL SYSTEM, AFTER WHICH SHE ATTENDED JAMES MADISON UNIVERSITY IN HARRISONBURG, VIRGINIA.

THOUGH LEAVING SHORT OF EARNING HER DEGREE, FELICIA SEES HERSELF AS A LIFELONG LEARNER AND CONSIDERS HERSELF A LIFELONG LEARNER OF ALL PROJECTS.

SHE'S PROUD OF THE EDUCATIONAL PROGRAMS THAT SHE HAS HELPED CREATE THROUGHOUT HER CAREER, INCLUDING A SERIES OF PANEL DISCUSSIONS, HIGHLIGHTING ISSUES AFFECTING LATINO AMERICANS AT THE NATIONAL COUNCIL OF RAZA IN WASHINGTON, DC SUPPORTING THE CONTINUING EDUCATION OF INDEPENDENT SECURITY BROKERS AT WACOVIA SECURITIES AND CREATING MOCK MEETINGS FOR GRADE SCHOOL STUDENTS TO LEARN ABOUT THE RICHMOND CITY COUNCIL.

THAT SOUNDS LIKE A GREAT NEW PROJECT FOR HER.

DOESN'T, UH, UM, PERSONALLY, SHE IS PROUD TO HAVE OVERCOME DEBILITATING DEPRESSION AND SEVERE INTROVERSION.

SHE IS WORKING ON AN ANTHOLOGY OF ESSAYS AND POEMS TO ENCOURAGE THOSE THAT FACE THE SAME ROAD DRAWN TO ADDISON FOR HIS EAST COAST STYLE, WALKABILITY AND VIBRANT, DIVERSE COMMUNITY.

SHE BEGAN EXPLORING EMPLOYMENT OPPORTUNITY OPPORTUNITIES AT THE TOWN AS EARLY AS 2012.

IN 2013, SHE BECAME THE OFTEN REBELLIOUS WIFE OF DAVID BOYD AND THE MOTHER TO THEIR 12-YEAR-OLD CHIHUAHUA KAYA.

WHILE SHE IS NOT A DIEHARD SPORTS FAN, SHE ENJOYS THE EXCITEMENT OF MARCH MADNESS AND ALWAYS ROOTS FOR THE UNDERDOG IN THE NCAA AND HER SPARE TIME.

SHE IS PASSIONATE ABOUT, UH, PASSIONATE ABOUT WORDS IN ALL FORMS, SCRIPTURES, CROSSWORD GAMES AND PUZZLES, READING AND WRITING.

SHE EVEN FANCIES HERSELF AS AN AMATEUR ENIGMA TOLOGIST.

OKAY, THAT WAS A NEW ONE.

ENJOYING SOLVING AND CREATING PUZZLES AND GAMES, WHICH SHE DOES A GREAT JOB ON OUR FIFTH TUESDAY.

SHE ALWAYS HAS GREAT GAMES FOR US ON OUR FIFTH TUESDAYS.

SHE'S ALSO A SELF-PROCLAIMED BEACH BUM, AND IS BUMMED THAT THERE'S NO BEACHES NEAR DALLAS.

UH, TO HER THE ADDISON WAY MEANS GOING THE EXTRA MILE TO ENSURE PROBLEMS ARE TACKLED FROM EVERY VANTAGE POINT.

IN DOING SO WITH KINDNESS, INCLUSIVITY, AND CARE FOR ONE'S INTERNAL AND EXTERNAL CLIENTS.

PLEASE WELCOME ME IN RECOGNIZING FELICIA.

AND I WILL, I WILL PERSONALLY SAY I DON'T KNOW WHAT WE WOULD DO WITHOUT FELICIA.

SHE IS, SHE IS DEFINITELY OUR STRONG POINT.

SHE IS THE ONE THAT KEEPS US ALL TOGETHER, SO I KNOW ALL OF YOU HAVE WORKED WITH HER AND WE CONTINUE TO BE GLAD TO HAVE HER AS PART OF THE TEAM.

AND FELICIA, DON'T RUN OFF IT 'CAUSE I'D LIKE TO SAY A COUPLE THINGS, IF YOU DON'T MIND.

FOR ME AND, AND, UH, TRIES TO KEEP ME ON TRACK, WHICH IS NOT EASY.

, BECAUSE, BECAUSE FELICIA AND I INTERACT ON A VERY REGULAR BASIS AND, UH, AND ASHLEY'S ABSOLUTELY RIGHT, I DON'T KNOW WHAT WE WOULD DO WITHOUT HER.

'CAUSE SHE SEEMS TO HAVE HER HAND IN PRETTY MUCH EVERYTHING GOING ON AROUND ADDISON.

AND SHE'S, SHE'S A JEWEL.

WE'RE SO FORTUNATE TO HAVE HER HERE.

AND, UH, AND WHAT SHE DOES FOR, FOR US IS, IS THE COUNCIL, THE STAFF, UH, THE METROPLEX MAYORS ASSOCIATION.

SHE PUTS THAT WHOLE THING TOGETHER EVERY MONTH AND, AND MANAGES ALL THAT.

AND, UH, AND SHE HELPS ME.

SHE, SHE MANAGES MY SCHEDULE

[01:05:01]

I KNOW.

SO THANK YOU FOR THAT.

BUT, UH, BUT I'M JUST SO GRATEFUL THAT YOU'RE HERE FOR US AND THAT WE'RE SO BLESSED TO HAVE YOU HERE.

SO THANK YOU FELICIA, FOR ALL YOU DO.

THANKS.

ALL RIGHT.

ITEM

[c. American Public Works Association (APWA) Public Works First Responders Designation]

TWO C, AMERICAN PUBLIC WORKS ASSOCIATION, PUBLIC WORKS, FIRST RESPONDERS DESIGNATION.

THAT'LL BE BECKY.

GOOD EVENING MAYOR.

IT'S MY HONOR TO HAVE THE PUBLIC WORKS AND ENGINEERING TEAM HERE WITH YOU TODAY, AND WE ARE VERY HONORED TO KNOW THAT, UM, NOT ONLY YOURSELVES, BUT ALSO THE TOWN.

THANKS ENOUGH OF WITH THE WORK THAT WE DO THAT YOU'RE GONNA TAKE THE OPPORTUNITY TO RECOGNIZE US TODAY.

UM, ONE THING I WANTED TO MENTION WAS THROUGH MY CONVERSATIONS WITH LOCAL PUBLIC OR WORKS DIRECTORS AND LEADERS THROUGHOUT THE, UM, STATE, WE ARE ONE OF THE FIRST INDIVIDUALS TO ACTUALLY FORMALLY ADOPT A RESOLUTION, AND THEY'RE ALL ANXIOUS TO SEE A COPY OF IT AFTER YOU ADOPT THIS TONIGHT IF YOU SO CHOOSE TO DO SO.

UM, I ALSO WOULD LIKE TO MENTION, UM, THAT IT MEANS A LOT BECAUSE MANY TIMES, UM, THE PUBLIC WORKS AND ENGINEERING TEAM IS NOT NECESSARILY SOMETHING THAT EVERYONE THINKS ABOUT, BUT THEY ARE THE FOLKS THAT ARE MAKING SURE YOUR WATER IS TURNING ON, YOUR TOILETS ARE FLUSHING, THAT YOUR ROADS ARE, UH, APPLICABLE TO DRIVE ON.

YOU HAVE GREAT SIDEWALKS AND TRAFFIC SIGNALS, UM, AND OF COURSE COLLECTING THE STORM DRAIN AS YOU WOULD SEE OVER THE WEEKEND WITH ALL THE RAIN THAT WE HAD.

SO WE REALLY ARE HONORED THAT YOU'RE TAKING THIS OPPORTUNITY AND, UM, I'M GONNA ASK THEM ALL TO COME FORWARD.

SO, UM, YOU CAN, UH, GO THROUGH YOUR, UH, PRESENTATION AND DEFINITELY THANK YOU ALL VERY MUCH FOR THIS OPPORTUNITY.

VERY GOOD.

THANK YOU, BECKY.

YEAH, LET'S BRING THE WHOLE CREW UP HERE AND I'LL, I'LL, I'LL READ THE RESOLUTION HERE, THE PROCLAMATION AND WHILE THEY'RE COMING UP, WHAT, WHAT, WHAT THESE, WHAT THESE FOLKS DO ON A DAILY BASIS IS JUST AMAZING.

THE HARD WORK THEY DO.

EVERYTHING THAT HOLDS THIS TOWN TOGETHER IS DONE BY THESE FOLKS.

OKAY? AND, UH, I'LL GO AHEAD AND READ THIS PROCLAMATION HERE.

BE A PROCLAIMED BY THE MAYOR OF TOWN OF ADDISON.

WHEREAS PUBLIC WORKS PLAYS A VITAL ROLE IN THEIR RESPONDING TO EMERGENCIES BY SUPPORTING PUBLIC SAFETY, EMERGENCY PARTNERS, HELPING PROTECT ESSENTIAL SERVICES AND RESTORING THOSE SERVICES FOLLOWING AN EMERGENCY.

AND WHEREAS IN 2017, THE AMERICAN PUBLIC WORKS ASSOCIATION CREATED A NATIONAL PUBLIC WORKS FIRST RESPONDER SYMBOL TO BE USED THROUGHOUT NORTH AMERICA TO RECOGNIZE PUBLIC WORKS PROFESSIONALS AS FIRST RESPONDERS.

AND WHEREAS THE NATIONAL INCIDENT MANAGEMENT SYSTEM LISTS PUBLIC WORKS ALONG POLICE, FIRE, AND PUBLIC HEALTH WORKERS IN ITS DOCUMENTATION.

AND WHEREAS THE EFFORTS OF PUBLIC WORKS FIRST RESPONDERS REPRESENT AN ESSENTIAL FUNCTION PROTECTING OUR CITIZENS AND COMMUNITIES THAT NO OTHER AGENCY PROVIDES.

AND WHEREAS THE TOWN OF ADDISON WOULD LIKE TO AUTHORIZE THE PUBLIC WORKS AND ENGINEER ENGINEERING DEPARTMENT TO USE THE PUBLIC WORKS FIRST RESPONDER SYMBOL AS ADOPTED BY THE AMERICAN PUBLIC WORKS ASSOCIATION TO RAISE AWARENESS AMONG ALL CITIZENS, GOVERNMENT OFFICIALS, AND OTHER FIRST RESPONDERS ABOUT THE CRITICAL ROLE PUBLIC WORKS PLAYS IN EMERGENCY MANAGEMENT EFFORTS.

AND WHEREAS THE CITY COUNCIL FINDS IT IN THE PUBLIC'S BEST INTEREST TO DESIGNATE THE TOWN'S PUBLIC WORKS AND ENGINEERING EMPLOYEES AS FIRST RESPONDERS.

NOW, THEREFORE ARE BRUCE ARFS AND THE MAYOR OF ADDISON.

AND ON BEHALF OF THE ENTIRE CITY COUNCIL DO HEREBY PROCLAIM THAT EMPLOYEES OF THE ADDISON PUBLIC WORKS AND ENGINEERING DEPARTMENT ARE DESIGNATED AS FIRST RESPONDERS AND AUTHORIZED TO USE THE PUBLIC WORKS FIRST RESPONDERS SYMBOL AS ADOPTED BY THE AP WA CONGRATULATIONS.

ABSOLUTELY YOU WOULD YOU ALL DO FOR US EVERY DAY.

JUST SO AMAZING.

I MEAN, WE SO APPRECIATE EVERYTHING YOU DO, AND I WOULD JUST SAY IT'S ABOUT TIME.

SO CONGRATULATIONS TO YOU ALL.

SHOULD WE DO A GROUP PHOTO THIS WAY? 1, 2, 3.

AWESOME.

[01:10:02]

THANK, THANK Y'ALL.

GET, YOU'VE ALSO REQUESTED THAT WE EVALUATE CROSSWALKS IN THE AREA TO SEE IF ADDITIONAL, UM, STRIPING OR ADDITIONAL ENHANCEMENTS CAN BE MADE TO THE AREA.

WHERE ARE Y'ALL GOING? THE MEETING'S NOT OVER.

I MARRIED AT 6:00 AM JEALOUS HOWARD.

[3. Public Comment. The City Council invites citizens to address the City Council on any matter, including items on the agenda, except public hearings that are included on the agenda. Comments related to Public Hearings will be heard when the specific hearing starts. Citizen comments are limited to three (3) minutes, unless otherwise required by law. To address the Council, please fill out a City Council Appearance Card and submit it to a staff member prior to the Public Comment item on the agenda. The Council is not permitted to take any action or discuss any item not listed on the agenda. The Council may choose to place the item on a future agenda.]

NUMBER THREE.

ITEM NUMBER THREE IS THE PUBLIC COMMENT SECTION.

THIS IS THE OPPORTUNITY FOR FOLKS IN THE PUBLIC TO ADDRESS THE COUNCIL FOR, UH, UP TO THREE MINUTES ON ITEMS THAT ARE ON THE AGENDA OR NOT ON THE AGENDA.

AND I DON'T HAVE ANY SPEAKER CARDS THAT HAVE BEEN PRESENTED TO ME.

IS THERE ANYBODY THAT WOULD LIKE TO ADDRESS THE COUNCIL? SEEING NONE, I WILL CLOSE THE PUBLIC COMMENT SECTION AND WE WILL MOVE ON

[4. Consent Agenda. All items listed under the Consent Agenda are considered routine by the City Council and will be enacted by one motion with no individual consideration. If individual consideration of an item is requested, it will be pulled from the Consent Agenda and discussed separately.]

TO THE CONSENT AGENDA.

THE CONSENT AGENDA TONIGHT INCLUDES ITEMS FOUR A THROUGH 4G.

IS THERE A MOTION? MAYOR, I'D LIKE TO MAKE A MOTION TO APPROVE FOUR A THROUGH 4G.

I'LL SECOND.

THANK YOU MARLON AND DARREN FOR THE SECOND.

ANY DISCUSSION? ALL IN FAVOR? AYE.

AYE.

ANY OPPOSED? ALRIGHT, CONSENT AGENDA IS APPROVED.

MOVING ON TO ITEM NUMBER FIVE

[a. Present, discuss, and consider action on an Ordinance approving the speed limit change from 30 miles per hour to 25 miles per hour on Quorum Drive from Airport Parkway to Addison Circle. ]

FIVE A.

PRESENT DISCUSSIONS.

CONSIDER ACTION ON AN ORDINANCE APPROVING THE SPEED LIMIT CHANGE FROM 30 MILES PER HOUR TO 25 MILES PER HOUR ON QUORUM DRIVE FROM AIRPORT PARKWAY TO ADDISON CIRCLE, BECKY, GOOD EVENING MAYOR AND COUNCIL.

BECKY DIVINITY, DIRECTOR OF PUBLIC WORKS AND ENGINEERING.

I WANNA QUICKLY GO THROUGH THE CITY COUNCIL REQUEST THAT WAS RECEIVED FROM COUNCIL MEMBER HOWARD FREE.

UM, WAS SECONDED BY DAN CIO TO INCLUDE A WORK SESSION ITEM.

UM, AS YOU'RE AWARE OF, WE HAD THAT WORK SESSION ON MAY 6TH.

THE ORIGINAL REQUEST WAS TO LOWER THE SPEED LIMIT ON QUORUM DRIVE FROM 30 MILES PER HOUR TO 20 MILES PER HOUR FOR APPROXIMATELY THAT HALF MILE BETWEEN ARAPAHOE AND AIRPORT PARKWAY.

AND TO INSTALL BLINKING YELLOW LIGHTS, SIGNAGE AT EACH END OF THE SLOWER SPEED ZONE THAT STATES ENTERING A SLOWER SPEED ZONE TO CALL ATTENTION TO THE NEW SPEED LIMIT.

THE COUNCIL DIRECTION GIVEN ON MAY 6TH, UM, WAS SPECIFICALLY TO MODIFY THE SPEED LIMIT FROM QUORUM DRIVE BETWEEN AIRPORT PARKWAY.

AND I NEED TO MAKE A CORRECTION THERE.

ACTUALLY REQUEST WAS FROM AIRPORT PARKWAY TO ARAPAHOE ROAD AND I WENT BACK AND LISTENED AND I APOLOGIZE FOR THE MISTAKE.

SO ACTUALLY IT'S FROM AIRPORT PARKWAY TO ARAPAHOE ROAD FROM 30 MILES PER HOUR TO 25 MILES PER HOUR.

UM, ONE OF THE THINGS TO MAKE SURE THAT WE'RE ALL IN ALIGNMENT ON IS DUE TO THAT WHAT WE CALL CONTEXT SENSITIVE DESIGN.

UM, REALLY LOOKING AT THOSE UNIQUE CHARACTERISTICS OF THIS AREA SPECIFICALLY.

UM, THERE'S A LARGE TREE CANOPY.

WE HAVE A ROUNDABOUT IN THE AREA.

THERE'S MULTIPLE CROSSING LOCATIONS FOR WHERE PEDESTRIANS ACTUALLY ARE CROSSING.

UM, ONE OF 'EM ACTUALLY HAS EVEN A STOP SIGN.

LOTS OF MULTIFAMILY HOUSING, WHETHER IT BE CONDO OR APARTMENT IN THIS AREA, COMMERCIAL BUSINESSES ALONG THE CORRIDOR.

UM, AND THOSE FOLKS ARE ALL HEAVY IN PE HEAVY PEDESTRIAN USERS.

UM, AND ALSO THERE'S TWO CLOSE, UH, PARKS IN VERY CLOSE PROXIMITY, BOTH BECKERT PARK AND BOSQUE PARK, UM, ON STREET PARKING IN THIS LOCATION.

UM, AND SO JUST TO KIND OF UN UNDERSTAND THE ENTIRE ENVIRONMENT THAT IT CREATES THAT, UM, IS SOMETHING THAT WE'RE REALLY INTERESTED IN CONSIDERING THAT 25 MILE PER HOUR SPEED LIMIT, UM, BECAUSE WE FEEL LIKE IT CREATES A SAFER, MORE REASONABLE SPEED LIMIT FOR THE ENVIRONMENT THAT IT SURROUNDS.

THE NEXT STEPS, UM, WOULD BE TO CHANGE THAT SPEED LIMIT PER THE TOWN CHARTER, UM, AND PUBLISH THAT ORDINANCE.

UM, THAT WOULD, UH, ANY ORDINANCE THAT OPPOSES ANY KIND OF PENALTY IN THE TOWN'S OFFICIAL NEWSPAPER, WHICH IS THE DALLAS MORNING NEWS.

UM, AT LEAST 10 DAYS AFTER THE ORDINANCE PASSAGE.

UM, AND THIS WILL THEN TAKE EFFECT 10 DAYS.

UM, AFTER THE PUBLICATION DATE, WE WILL ALSO WORK TO INSTALL THOSE UPDATED SPEED LIMIT SIGNS, UM, POST CHANGES ON SOCIAL MEDIA AND OBVIOUSLY NOTIFY OUR, UM, ADDISON POLICE DEPARTMENT.

AND WITH THAT I WILL TAKE ANY QUESTIONS THAT YOU MIGHT HAVE.

THANK YOU, BECKY.

ANY QUESTIONS? I'VE GOT ONE.

OKAY, SO YOU HAD MENTIONED, YOU KNOW, NEXT STEPS, NOWHERE NEAR THE DIMENSION SIGNAGE ARE WE, WE GOING TO CHANGE NOT SPEED LIMIT TIMES, BUT WE GONNA ADD ENTERING A SLOWER SPEED LIMIT TIMES IN THERE.

WE WILL BE GOING THROUGH THE, UH, TEXAS M-U-T-C-D, WHICH IS THE DOCUMENT OR THE BOOK OF WHICH IS THE GUIDANCE DOCUMENT THAT WE APPLY.

UM, WE ARE GONNA BE INSTALLING SOME OF THOSE BLINKING FLASHLIGHTS AROUND THE STOP SIGNS.

THOSE ARE ON ORDER, THEY TAKE ABOUT SIX WEEKS TO

[01:15:01]

UM, AND THROUGHOUT THAT ENTIRE CORRIDOR, WE'RE GONNA TAKE THAT COUNTERMEASURE, UM, DOCUMENT THAT I PRESENTED ON MAY 6TH, THEN EVALUATE IT ALONG WITH ONE OF THE PROJECTS THAT'S ALREADY BEING WORKED ON THROUGH THIS AREA, UM, WITH THE PARKS DEPARTMENT, WITH, UM, THE BIKE LANES AND SOME OF THE AREAS AND SHADOWS AND THE OTHERS.

SO A COMBINATION OF ALL OF THOSE DIFFERENT THINGS ARE ALSO GOING TO HELP WITH THE CONTACT SENSITIVE DESIGN AND THEN, UM, GIVE YOU THE OPPORTUNITY TO FEEL THE LOWER SPEED LIMIT BY THE OTHER ELEMENTS THAT ARE, UM, GONNA BE PLACED ALONG THE ROADWAY NETWORK.

THAT'S GREAT BECAUSE I'M NOT A HUNDRED PERCENT SURE REDUCING THE SPEED WILL FIX THE PROBLEM, BUT I KNOW YOU HAVE THIS TOOLBOX OF FLASHING LIGHTS AND CROSSWALKS AND ALL KINDS OF STUFF AND I THINK THAT'S A GREAT AREA TO TRY TO EXPERIMENT AND SEE WHAT REALLY DOES WORK.

I KNOW WE'VE ALREADY SEEN SOME POSITIVE EFFECTS FROM THAT STOP SIGN, SO HOPEFULLY SOME OTHER MEASURES MIGHT EVEN MAKE IT BETTER, SO THANK YOU FOR THAT.

ABSOLUTELY, SIR.

HAPPY TO DO.

SO YOU HAVE HOWARD GO, I I HAVE ONE COMMENT.

THE, UM, THOSE, THE STREETS PERPENDICULAR TO QUORUM.

UH, SOME OF THOSE WHEN YOU COME TO QUORUM AND YOU TURN LEFT OR RIGHT ONTO QUORUM, THERE'S NOT A SPEED LIMIT SIGN ONCE YOU ENTER QUORUM.

LIKE IF YOU COME IN FROM ARAPAHO OR YOU COME IN FROM AIRPORT, THERE ARE SPEED LIMIT SIGNS, BUT IF YOU COME IN IN THE MIDDLE, SHOULDN'T THERE BE A SPEED LIMIT SIGN WHEREVER YOU'RE, ONCE YOU ENTER INTO QUORUM AND TURN LEFT OR RIGHT, SO YOU KNOW, IT'S 25 BECAUSE IF IT'S BEEN 30, I I, I GUESS WHAT I'M ASKING IS ARE THERE GONNA BE MORE SPEED LIMIT SIGNS THAN WE CURRENTLY HAVE BECAUSE I DON'T THINK THEY'RE THROUGHOUT THE, THE STREET.

SURE.

AS WE EVALUATE THAT ENTIRE AREA, WE WANNA MAKE SURE THAT IT'S, UM, OBVIOUS AS YOU'RE IN THE AREA WHAT THE SPEED LIMIT SPEED LIMIT IS YOU'RE SUPPOSED TO BE DRIVING.

SO I CAN'T TELL YOU EXACT LOCATIONS OF WHERE SPEED LIMIT SIGNS WILL BE ADDED, BUT I DO ANTICIPATE THERE WILL BE SEVERAL, UM, THROUGHOUT THAT AREA JUST TO MAKE SURE THAT FOLKS KNOW WHERE, WHAT THEY'RE ENTERING AND WHAT THE SPEED LIMIT IS ALONG THAT AREA.

SO, YOU KNOW, WHEN YOU MAKE A RIGHT TURN OR A LEFT TURN, YOU, WE WANNA MAKE SURE THAT YOU'RE AWARE WHAT THAT SPEED LIMIT IS.

SO I I DO ANTICIPATE THERE, UH, TO BE A FEW ADDITIONAL SIGNS IN THAT AREA.

WE HAVEN'T LAID THAT ALL OUT YET, BUT THAT WILL BE THE NEXT STEPS.

OKAY, THANK YOU.

THANKS.

AND, AND BECKY, AND, AND I APPRECIATE THAT Y'ALL ARE GONNA BE LOOKING AT THAT WHOLE AREA TO SEE HOW WE CAN MAKE IMPROVEMENTS AND MAKE 'EM SAFER BECAUSE I THINK ABOUT THAT EVERY PRETTY OFTEN I DRIVE THROUGH, UM, COME NORTHBOUND ON QUORUM AND, AND DO THE ROUNDABOUT TO GO WESTBOUND ON ADDISON CIRCLE AND, AND I GET REALLY NERVOUS ABOUT THE PEDESTRIANS THAT ARE CROSSING THERE AS FOLKS ARE EXITING THE ROUNDABOUT.

AND SO HOPEFULLY WITH THAT WE CAN DO SOMETHING TO MAKE THAT A LITTLE SAFER FOR THE PEDESTRIANS.

ABSOLUTELY.

THAT PROJECT IS ACTUALLY ALREADY IN THE DESIGN PHASE.

UM, IT'S A PART OF THE HIGHWAY SAFETY IMPROVEMENT PROGRAM THAT WE RECEIVED A GRANT FOR TO DO THE CROSSWALKS LOCATED AT ADDISON CIRCLE THAT ALSO EXPAND OUT TO THOSE ROADWAYS, UM, ALONG THERE, WHETHER IT BE ADDISON CIRCLE OR QUORUM.

SO THERE'S A LOT OF THINGS GOING ON IN THAT AREA, BUT THAT ACTUALLY IS SOMETHING THAT WE'RE ALREADY HAVING DESIGN.

ANYTHING ELSE FROM ANYBODY? ONE QUICK ONE, IF YOU DON'T MIND IF YOU'LL TURN YOUR MIC ON, IF YOU DON'T HAVE IT ON OUR TWO, UH, FOLLOW THE, THE TREND OF THE SIGNAGE AND I, I DIDN'T HEAR THE ANSWER TO THE QUESTION ON A, ON A HIGH ENFORCEMENT SIGN ON MONFORT, WHEN YOU COME OFF AND YOU'RE COMING DOWN MONFORT, THERE ARE HIGH ENFORCEMENT WARNING SIGNS ALONG THE WAY.

WILL WE HAVE OR CAN WE GET ONE OF THOSE COMING IN BOTH DIRECTIONS TO KIND OF GIVE IT A LITTLE BIT MORE OF AN EMPHASIS THAT YOU ARE ENTERING A DIFFERENT SPEED LIMIT THAN YOU HAVE BEEN? DEFINITELY SOMETHING THAT I'M WILLING TO EVALUATE WITH THE CHIEF OF POLICE TO LOOK AT THOSE SPECIFIC AREAS OF WHICH THAT THEY WOULD MAKE SENSE.

THERE ARE CERTAIN REGULATIONS, UM, THAT ARE APPLICABLE TO THOSE.

SO DEFINITELY HAPPY TO LOOK INTO THAT.

I CAN'T PROMISE THAT THAT'S SOMETHING THAT WILL BE ADDED, BUT DEFINITELY SOMETHING THAT WE'RE WILLING TO EVALUATE TO SEE IF THAT MAKES SENSE IN THAT AREA.

VERY GOOD.

MARLON? YEAH, MAYOR, UNLESS THERE'S UH, FURTHER DISCUSSION, I'D LIKE TO MAKE A MOTION IF WE'RE READY FOR THAT.

YES SIR.

UM, THAT WE APPROVE THE ORDINANCE, BUT, BUT WE CHANGE WHERE IT SAYS ADDISON CIRCLE TO ARAPAHOE ROAD, WHAT BECKY REFERENCED.

SO, SO BASICALLY THERE'S I THINK, THREE REFERENCES TO ADDISON CIRCLE AND WE JUST WANNA CHANGE THOSE TO ARAPAHOE ROAD.

SO MY MOTION IS TO APPROVE WITH THOSE, WITH THOSE EDITS.

FIVE B PRESENT, DISCUSS AND CONSIDER ACTION ON A REQUEST FOR A MERITORIOUS EXCEPTION TO CHAPTER 62 OF THE CODE OF ORDINANCES FOR WILSON COMPANY LOCATED AT 16 3 0 1 ADDISON ROAD.

THANK YOU MARLON.

I'LL SECOND THANK YOU CHRIS FOR THE SECOND.

ANY OTHER DISCUSSION? ALL IN FAVOR? AYE.

AYE.

ANY OPPOSED? ALRIGHT, ITEM FIVE A IS APPROVED.

THANK YOU, BECKY.

ITEM

[b. Present, discuss, and consider action on a request for a Meritorious Exception to Chapter 62 of the Code of Ordinances for Wilson Company, located at 16301 Addison Road, in order to allow an attached wall sign to exceed the maximum effective area and maximum letter height on the east facade. (Case MR2025-1/16301 Addison Road - Wilson Company).]

IN ORDER TO ALLOW AN ATTACHED WALL SITE TO EXCEED THE MAXIMUM EFFECTIVE AREA

[01:20:01]

AND MAXIMUM LETTER HEIGHT ON THE EAST FACADE CASE.

MR 2025 DASH ONE SLASH 16 3 0 1 ADDISON ROAD, WILSON COMPANY.

GOOD EVENING, LESLIE KNIGHT, DIRECTOR OF DEVELOPMENT AND NEIGHBORHOOD SERVICES.

UM, THIS EVENING I AM PRESENTING A MERITORIOUS EXCEPTION REQUEST FOR WILSON COMPANY, THEIR EXISTING, UM, HYDRAULIC EQUIPMENT, UH, RETAILER THAT'S LOCATED AT, UH, 16 3 0 1 ADDISON ROAD.

UM, THEY'VE DONE SOME KIND OF EXTERIOR FACADE IMPROVEMENTS AND THEY, UM, WOULD LIKE TO UPGRADE THEIR SIGNAGE AS WELL, WHICH HAS BROUGHT ON, UM, THIS MERITORIOUS EXCEPTION REQUEST.

UM, SO THE PROPOSED SIGN, UM, IS HERE SHOWN ON THE EAST ELEVATION THAT'S FACING TOWARDS ADDISON ROAD.

UM, THIS PARTICULAR SIGN, UM, DOES EXCEED OUR CURRENT MAXIMUM EFFECTIVE AREA AS WELL AS OUR MAXIMUM LETTER LOGO HEIGHT.

UM, SO TODAY THE, UH, RATIO USED IS ONE, UH, SQUARE FOOT OF AREA PER ONE LINEAR FOOT OF BUILDING FRONTAGE.

AND THE BUILDING FRONTAGE IS 51 FEET, THEREFORE, UM, THEY'RE ALLOWED TO HAVE 51 SQUARE FEET OF AREA WITHIN THEIR SIGN.

UM, THE PROPOSED SIGN, UM, THAT WAS SHOWN ON THE FACADE AND IS HERE IS 75.6 SQUARE FEET.

UM, I WOULD LIKE TO NOTE THAT, UM, THE APPLICANT DID APPROACH STAFF AND WE DID DISCUSS THIS.

THEIR PROPOSED SIGN DOES COMPLY WITH THE REGULATIONS THAT WERE APPROVED WITHIN THE UNIFIED DEVELOPMENT CODE OR UDC IN MARCH, UH, OF THIS YEAR, 2025.

UM, HOWEVER, STAFF CANNOT ADMINISTRATIVELY APPROVE THIS REQUEST AT THIS TIME AS THOSE, UM, REGULATIONS DO NOT TAKE EFFECT UNTIL SEPTEMBER 1ST, 2025.

UM, SO THE, UM, JUST WANNA REITERATE, THE UM, RA RATIO THAT WAS ADOPTED WITHIN THE UDC ALLOWED 1.5 SQUARE FEET OF AREA PER ONE FOOT OF LINEAR BUILDING FRONTAGE.

SO THEY'RE ALLOWED SQUARE FOOTAGE, UM, WOULD BE 76.5 SQUARE FEET, WHICH, UM, THE PROPOSED SIGN IS WITHIN.

AND, UH, ONE OTHER NOTE, UM, THE PROPOSED SIGN DOES EXCEED THE EXISTING MAXIMUM LETTER LOGO HEIGHT, WHICH IS 16 INCHES.

HOWEVER, UM, DUE TO THAT PARTICULAR REGULATION BEING VERY, UM, RESTRICTIVE AND LIMITING ON SIGNS, UH, IT WAS REMOVED WITHIN THE UNIFIED DEVELOPMENT CODE AND SO IT WILL NOT, UM, BE AN ISSUE.

UM, THE APPLICANT JUSTIFICATION PROVIDED WAS THAT THIS WILL BE ALLOWED BY WRIGHT COMES SEPTEMBER 1ST, UM, AND THEY WOULD LIKE TO MOVE FORWARD AT THIS TIME.

STAFF EVALUATED THE PROPOSAL, UM, AND BASED UPON THE REASONS, UH, I'VE ALREADY STATED AND THAT THIS SIGN AFTER SEPTEMBER 1ST WOULD BE ABLE TO BE PERMITTED BY WRIGHT, UH, WITHOUT COMING BEFORE YOU STAFF COULD APPROVE IT ADMINISTRATIVELY VIA ASSIGNED PERMIT PROCESS.

UM, AND WILL BE CONSISTENT WITH SIGNS MOVING FORWARD AS IT'S UNLIKELY, UH, THAT THE, THAT PARTICULAR REGULATION IN THE UDC WILL CHANGE IN THE NEAR FUTURE, UM, STAFF IS, UH, RECOMMENDING APPROVAL OF THE REQUEST.

I'D BE HAPPY TO TAKE ANY QUESTIONS.

THANK YOU, LESLIE.

SO WE'RE JUST MOVING UP THE TIMELINE ABOUT THREE MONTHS, CORRECT? YEP.

YEP.

SO COME SEPTEMBER 1ST, IF THEY APPLIED FOR THIS, IT'D BE PERMITTED BY RIGHT.

AND WE WOULD NOT HAVE TO COME FOR YOU.

GOT IT.

QUESTIONS? I'VE GOT ONE QUESTION.

MAYOR LESLIE, ON THIS SIGN, IS IT LIKE AN ATTACHED, IS IT GONNA BE AN ATTACHED SIGN OR ARE IT GONNA BE PAINTED ON THE BUILDING? NO, IT IS AN ATTACHED SIGN.

IF YOU LOOK, IT'S A LITTLE BIT CHALLENGING TO TELL, BUT IF YOU LOOK AT THE PLANS WITHIN THE AGENDA PACKET, YES.

UM, IT IS, YOU CAN SEE THE SIDE PROFILE OF THE SIGN, UM, IT'S AFFIXED TO THE, THE FRONT OF THE BUILDING ALONG ADDISON ROAD.

OTHER QUESTIONS? ONE OTHER I COULD PLEASE.

TURN YOUR MIC ON PLEASE.

ROOKIE MISTAKE.

I APOLOGIZE.

, UH, WHEN WE GOT OUR PACKET, I WENT TO LOOK AT THIS BUILDING YEAH.

TO, TO GET A, A VIEW OF THIS MM-HMM .

AND, UM, WITHOUT, I DON'T WANNA MAKE AN AMENDMENT TO THIS, BUT MY REQUEST TO THE, TO, TO THE BUSINESS, I'VE DROVE PAST THIS PLACE THREE TIMES AND COULDN'T SEE THEIR ADDRESS SIDE.

THEIR ADDRESS IS OVER ON THE WOODEN SIDE OF THE BUILDING.

AND IT ALMOST, IT ALMOST LOOKS TOO SMALL FOR THE STRUCTURE.

IT WOULD LOOK MORE APPROPRIATE IF IT'S A LITTLE LARGER MM-HMM .

AND I WOULD JUST LIKE TO SEE 'EM FOR FIRE AND POLICE AND PEOPLE THAT ARE LOOKING FOR THEIR BUSINESS TO HAVE A MORE VISIBLE SIGN, WHETHER IT BE BIGGER OR WHETHER THEY MATCH THEIR BLUE WILSON COLOR TO MAKE THAT POP A LITTLE BIT MORE WOULD BE AN ONLY SUGGESTION THAT I WOULD MAKE TO 'EM.

THINK IT, I THINK IT WAS HARD TO SEE, SO.

UM, WE CAN DEFINITELY REVIEW THAT.

'CAUSE IT IS A REQUIREMENT OF FIRE CODE BUILDING CODE AS WELL AS PROPERTY MAINTENANCE STANDARDS TO HAVE YOUR ADDRESS IT A YEP.

AND CONTRASTING COLOR, I MEAN, IT, IT, ITS, IT JUST LOOKS SMALL FOR THE, FOR THE BUILDING AND AT NIGHT BEING BLACK NOT LIT.

[01:25:01]

AND, UH, AND THEN THE, AND THE FOLKS AT WILSON, THEY RECENTLY DID SOME NICE, UH, IMPROVEMENTS TO THE EXTERIOR OF THE BUILDING.

ABSOLUTELY.

SO IT'S REALLY GREATLY IMPROVED OVER WHAT IT WAS, UH, JUST SEVERAL MONTHS AGO.

SO REALLY LOOK GREAT.

THEY'VE BEEN HERE FOR A LONG TIME.

I DON'T REMEMBER HOW LONG, BUT I COULDN'T EVEN FIND THEIR CO IN OUR SYSTEM.

THAT'S HOW LONG THEY'VE BEEN THERE FOR.

SO SEVERAL.

YEAH, YEAH.

BUT, UH, BUT THEY'RE, THEY'RE A GREAT, GREAT COMPANY.

GREAT, UH, GREAT CORPORATE NEIGHBOR FOR US.