* 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. [00:00:03] ALRIGHT, I CALL [ SPECIAL MEETING OF THE CITY COUNCIL September 1, 2020 ADDISON TREEHOUSE 14681 MIDWAY ROAD, SUITE 200, ADDISON, TX 75001 5:00 PM SPECIAL MEETING Notice is hereby given that the Addison City Council, will conduct its SPECIAL MEETING on Tuesday September 1, 2020 at the Addison TreeHouse with a quorum of the City Council physically present. Limited seating for members of the public will be available using CDC recommended social distancing measures. The Town will utilize telephone or videoconference public meetings to facilitate public participation to mitigate the spread of COVID-19 by avoiding meetings that bring people into a group setting. Telephonic or videoconferencing capabilities will be utilized to allow individuals to address the Council. Email comments may also be submitted to:iparker@addisontx.gov by 3:00 pm the day of the meeting. Members of the public are entitled to participate remotely via Toll-Free Dial-in Number: 877.853.5247; Meeting ID: 409.327.0683 Participant ID: #. For more detailed instructions on how to participate in this meeting visit our Agenda Page. The meeting will be live streamed on Addison's website at www.addisontexas.net.] THE MEETING TO ORDER. SO PLEASE STAND UP BEFORE I ONE NATION UNDER GOD, INDIVISIBLE WITH LIBERTY AND JUSTICE. SO LET'S DO THE LAST BIT WASN'T TO MAKE MAYOR AND COUNCIL NO ANNOUNCEMENTS FOR ME TONIGHT. ALL RIGHT. ANY PUBLIC COMMENT? YES, SIR. OKAY. CAN YOU HEAR ME? YES. THE FIRST ONE IS FROM NELLIE GARCIA AT FOUR ZERO ZERO NINE AZURA LANE, (214) 536-5461. PLEASE ENFORCE YOUR TOWN OF PATTERSON, OFFICIAL PLACE, FOOT PAGE, SOCIAL MEDIA POLICY REGARDING APPROPRIATE BEHAVIOR LANGUAGE, PAUL WELDON, ADDISON CITY COUNCIL, AND HIS POLITICAL SUPPORTERS HARASS HUMILIATE. AND THOSE WHO ISSUE ANY KIND OF CRITICISM OF TOWN OF ADDISON AND ITS LEADERSHIP. WE USE DISGUSTING MISSIVE, ACCURATE, SAY THE WORD, BUT MISOGYNISTIC AND RACIST LANGUAGE. I READ COMMENTS ENCOURAGED BY COUNCIL MEMBER RATHER THAN ON THE OFFICIAL TOWN ABOUT IS SOME FACEBOOK PAGE COUNCIL MEMBER CALL ROBIN SHOWING ONE YEAR YOU SHOULD RESIGN. THERE WAS, UH, SEVERAL PAGES OF EMAIL, UH, THAT THEY WERE COPIED AND THEY WILL BE INCLUDED IN THE RECORD. THE NEXT ONE IS FROM PATRICIA HUNT, UH, AND SHE EMAILED SOMETHING AT 12 O'CLOCK TODAY. YOU CAN CLEARLY SEE FROM THESE COMMENTS THAT SHE ATTACKS ANYONE WHO CHALLENGES HER MANY COMPLAINTS WITH BETRAYAL AND MAKES THEM VERY PERSONAL AND NASTY FROM THESE. YOU CAN SEE EVIDENCE OF AGE SHAMING CALLING PEOPLE RACIST. IMPLYING RESIDENTS ARE IN A WITCH COVER SHAMING PEOPLE WITH DISABILITIES AND POSTING PHOTOS OF RESIDENTS WITH RUDE REMARKS. THIS HAS NOTHING TO DO WITH THE WORK. THE TOWN OF ADDISON IS ENGAGED IN AND IS A VIOLATION OF THE PAGE STANDARDS AS INDICATED IN THE PAGE RULES, COMMENTS, MOST BE RELATED TO THE POSTED TOPIC. I'D ALSO LIKE TO ADD THAT MS. GARCIA HAS CONTACTED ME PERSONALLY ON TEXT MESSAGES ON MY PHONE. SHE HAS ALL SORT OF PHOTOGRAPHING STRANGERS IN OUR PARK AND PUBLICLY SHAMED THEM ON THE TOWN PAGE. THIS IS HARASSMENT AND NEEDS TO BE ADDRESSED. I DON'T HAVE TO CONFIRM ME WITHOUT ALSO OFFERING POTENTIAL SOLUTIONS. SO I HAVE SOME SUGGESTIONS. ONE THE TOWN COULD WELL ANYWAYS, WHERE THE PIECES IT'S PAGE PREVENTING THEM TO COMMENT. NOT SURE BY NOW HAVING A WEALTH OF EVIDENCE, PROVING HER ABUSE. HOW'S THE PAGE TO THE TOWN TO KEEP ANYONE FOR POSTING AND ANY QUESTIONS CAN BE RUN INTO IN THE APPROPRIATE WAY TO THE TOWN'S WEBSITE, MAKE IT AN INFORMATION ONLY PAGE THREE, BETTER SHAMING OR HARASSING RESIDENTS SHOULD BE REMANNED WITH THE POSTING. ANOTHER THING I HAVE NOTICED IS THAT NELLIE WAS BACK LATER AND DOESN'T LEAD TO A MORE COHESIVE COMMENTS. I SUGGEST IF YOU ALLOW HER TO CONTINUE TO POST PREVENT HER FROM DELETING HER COMMENTS. SO THEY ARE OUT THERE FOR EVERYONE TO SEE I AND MANY OTHERS HAVE STOPPED COMMUNICATING WITH HER BECAUSE I FEEL ON SOME LEVEL, THIS IS DONE FOR ATTENTION, AND WE DO NOT WANT TO ENCOURAGE ANY FURTHER NEGATIVE BEHAVIOR. PLEASE LET ME KNOW WHEN YOU HAVE ANY QUESTIONS, BURST PATTY HUNT. AND THEN I RECEIVED SOME COMMENTS FROM MR. HARPER AND HE, UH, HIS COMMENTS WILL BE ADDED TO THE RECORD OF TONIGHT'S MEETING. THANK YOU. SO DID I MISS THE HOPPER SAID, SAY ANYTHING? I ALWAYS NEED A MICROPHONE. HE JUST REALLY WANTED TO READ, BUT SOME OF THE SAME COMMENTS THAT, UH, THIS IS HEART DISEASE. OKAY. THANK YOU. ALRIGHT, SAYS DISCUSS THIS. THIS IS A PUBLIC COMPANY. UH, TODAY WE GATHER TOGETHER TO DO THE PUBLIC TAXIWAY AND LOGIC 2021 BUDGET. SO LET ME READ THE ITEMS. I TEND NUMBER ONE FOR THE POVERTY HERE WE PRESENT [00:05:01] AND DISCUSS THE POWER OF ADDISON'S MOST PROPERTY TAX RATE FOR THE FISCAL YEAR, COMMENCING OCTOBER 1ST, 2020 AND ENDING SEPTEMBER 30, 2021. SO I READ IT THE SECOND, THE SAME TIME FOR THE POVERTY HERE WE PRESENT AND DISCUSS THE POWER OF EDISON'S ANNUAL BUDGET FOR THE FISCAL YEAR, COMMENCING OCTOBER ONE, 2020 AND ENDING SEPTEMBER 30TH, 2021 OR LESS. YOU WILL WANT TO COME IN BEFORE STEVEN PRESENTATION. NO MAYOR. I'M FINE WITH GOING INTO THE PRESENTATION. GOOD EVENING. MAYOR AND COUNCIL, STEVEN BUCKMAN, CHIEF FINANCIAL OFFICER, UH, AND THE FIRST PRESENTATION I HAVE HERE IS RELATED TO THE, UH, TAX RATE PUBLIC HEARING, UH, FOR FISCAL YEAR 2021. THIS IS A TIMELINE OF THE EVENTS REGARDING THE PROPERTY TAX RATE APPROVAL PROCESS. UH, SO BACK ON MONDAY, JULY 27TH, WE RECEIVED A CERTIFIED ESTIMATE OF VALUES FROM THE DALLAS CENTRAL APPRAISAL DISTRICT. UM, ON THURSDAY, AUGUST 20TH, WE RECEIVED THE ACTUAL CERTIFIED VALUES FROM DALLAS CENTRAL APPRAISAL DISTRICT. LAST WEEK, WE PUBLISHED NOTICE OF THE PROPOSED TAX RATE, UH, AND THE BOAT ON THAT TAX RATE THAT WOULD OCCUR ON SEPTEMBER 8TH AND ON, UH, TODAY, TUESDAY, SEPTEMBER 1ST, WE'RE HERE FOR THE FIRST PUBLIC HEARING ON THE BUDGET AND THE TAX RATE. AND THEN NEXT TUESDAY, SEPTEMBER 8TH, WE WOULD HAVE THE SECOND PUBLIC HEARING ON THE BUDGET AND TAX RATE. AND THEN THAT SAME, UH, THAT SAME MEETING AND IT'D BE ORDINANCES FOR THE ADOPTION OF THE BUDGET AND TAX RATE PROPOSED. AND THEN THE FISCAL YEAR BEGINS OCTOBER 1ST. HEY, STEVEN, I'VE GOT A COUPLE OF QUESTIONS IF I COULD REGARDING THIS. UM, WHEN, WHEN IN A TYPICAL YEAR ON COVERT, IF YOU WILL. OKAY. WHEN, WHEN AS DECAF HAVE TO GET US THE CERTIFIED, WELL THEY'RE, THEY'RE SUPPOSED TO GET THEM TO YOU BY JULY 25TH. SO IF IT, EVEN IF IT WASN'T A COVID YEAR AND SAY THAT THEY WERE NOT ABLE TO CERTIFY 90% OF THOSE VALUES, THEY WOULD STILL GIVE US AN ESTIMATE. THIS IS JUST THE, AN ANOMALY A YEAR THAT THEY ONLY WERE ABLE TO CERTIFY ABOUT TWO THIRDS OF THE PROPERTIES BEFORE THEN THAT JULY DATE. OKAY. IT MAY BE WRONG, BUT IT JUST SEEMS LIKE WE'VE GOT A SHORT CYCLE COMBINED WITH YES. LAKE LAKE ESTIMATES, LIKE VALUES, AND I'M TRYING TO WHAT I'M, WHAT I'M REALLY DRIVING AT. IS THERE, IS THERE ANYTHING THAT WE COULD DO TO KIND OF, SHOULD WE BE LOOKING AT MOVING BACK ANY, ANY OF THESE ITEMS BACK IN THE CALENDAR TO, TO NOT RUN INTO THIS AGAIN? UH, LATE, UH, I JUST, I WOULD THINK NEXT YEAR MIGHT BE A BIG ARM WRESTLING BATTLE BETWEEN D CAT AND OUR, AND OUR BUSINESS, A LOT OF BUSINESS, COMMERCIAL PROPERTY OWNERS AND BUSINESS, PERSONAL PROPERTY, AND JUST, IT JUST MAKES A DIFFICULT SITUATION MORE DIFFICULT WHEN WE GET THIS, THIS DATA SO LATE. WHAT DO YOU MEAN BY MOVING BACK? WELL, I, I, I'M TRYING TO FIND OUT IS, DO WE HAVE ANY WIGGLE ROOM AT ALL, AS FAR AS MOVING BACK, UH, WHEN WE RECEIVED THE BUDGET, YOU KNOW, OUR HEARINGS, UM, FIRST SECOND, WHAT HAPPENED? SO THE CHARTER REQUIRES THAT THE, THAT THE CITY MANAGER DELIVERS THAT AND BUDGET BY JULY 31ST. SO THAT'S A REQUIREMENT, UH, THE, THE, THE OTHER ITEMS, AS FAR AS, AS FAR AS WHEN WE GET THE VALUES, THEY'RE REQUIRED TO GIVE US THAT ESTIMATE BY JULY 25TH. UM, THE OTHER, THE OTHER ISSUE IS THAT BECAUSE OF TOO, IF THERE WAS, IT'S GOING TO BE SOMETHING THAT THE COUNCIL NEEDED TO CONSIDER, THAT WOULD BE IN EXCESS OF THE THREE AND A HALF PERCENT, UH, FOR APPROVAL RATE, THEN THAT ALL WOULD HAVE TO BE DONE BEFORE AUGUST THE, WELL, THIS YEAR WOULD HAVE BEEN AUGUST THE 17TH IN ORDER TO CALL THEM THE ELECTION. SO YOU CAN HAVE, YOU HAVE A COMPRESSED TIMELINE BASED ON THAT AS WELL. SO IF, IF, IF WE WEREN'T, WE WEREN'T UP AGAINST, FOR EXAMPLE, THAT, THAT DEADLINE THEN THEORETICALLY YOU COULD MOVE THE BUDGET, UH, AT THE BUDGET WORK SESSIONS LATER IN THE MONTH, AS YOU RECALL, FISCAL YEAR 2020S BUDGET, INSTEAD OF MEETING ON THE FIFTH AND SIXTH, WE MET ON, I BELIEVE THE 15TH AND SIXTH, [00:10:01] BUT WE DIDN'T HAVE SENATE BILL 20, UH, EXCUSE ME, THE SENATE BILL TWO, UH, DEADLINES THAT WERE IN PLACE. THAT'S FINE. FANTASTIC. DO WE, FOR THE NEXT TWO MORE YEARS, DO WE, UH, WE STILL RESTRICTED BY SB TOO WITH THE BOATS THAT WE HAD, UM, YOU KNOW, THAT ALLOWED US TO, TO GO ABOVE WHAT OUR BILLOWING HALF PERCENT BEFORE, UM, BOOM. IT JUST CHANGES THE RATE AT THE PERCENTAGE AT WHICH WE CALCULATE THAT VOTER APPROVAL RATE. SO EVERYTHING ELSE WITHIN SENATE BILL TWO STILL APPLIES JUST THE, JUST THE WAY THAT WE'RE CALCULATING THE VOTER APPROVAL RATE, INSTEAD OF IT BEING A THREE AND A HALF PERCENT INCREASE IS NOW 8%. THAT'S A BIG, THAT'S A BIG DEAL, RIGHT? YEAH. I JUST, I WOULD, UH, HOPE THAT WE MIGHT STAFF MIGHT BE ABLE TO EXPLORE WHAT, WHAT, IF ANYTHING WAS, SHOULD CONSIDER WHEN SOME OF THESE DATES FOR NEXT YEAR, UM, WITH THE THOUGHT THAT DEEP PIT PINE STRUGGLE AGAIN, PUT US IN A BAD POSITION. OKAY. MOVING ON TO THE PROPERTY TAX VALUES AND TAX RATE, THE CERTIFIED ASSESSED VALUE THAT WE RECEIVED ON AUGUST 20TH WAS 4 BILLION, $930 MILLION. UH, THE CERTIFIED ASSESSED VALUE FOR FISCAL YEAR 2020 WAS 4 BILLION, $820 MILLION. UH, THE FISCAL YEAR 2020 PROPERTY TAX RATE IS 58.35 CENTS. AND THE PROPOSED PROPERTY TAX RATE FOR FISCAL YEAR 2021 IS 61.69 CENTS. THERE WERE SOME CHANGES TO THE CERTIFIED VALUES FROM WHAT WAS ESTIMATED IN THE PROPOSED BUDGET AND WHAT THE ACTUAL CERTIFIED VALUES WERE. SO, AS I MENTIONED, THE ACTUAL CERTIFIED VALUES WERE ABOUT 4.9, 3 BILLION. AND WHAT WE INCLUDED IN THE PROPOSED BUDGET AS AN ESTIMATE WAS CLOSER TO 4.6 BILLION. SO THAT DIFFERENCE IS ABOUT A LITTLE BIT OVER $62 MILLION IN A POSITIVE VARIANCE, AS FAR AS THE ACTUAL PROPERTY VALUES OR ABOUT 1.2, 8%. SO WHAT DOES THAT MEAN FOR THE TAX RATE? SO THE PROPOSED TAX RATE, THE TWO COMPONENTS, MAINTENANCE AND OPERATIONS, AND THE INTEREST IN SINKING, UH, FOR A TOTAL TAX RATE OF 61.6, EIGHT, SEVEN, EIGHT, UH, USING JUST THE CHANGE IN THE CERTIFIED VALUES. UH, THOSE TWO COMPONENTS COULD BE REDUCED AND GENERATE THE EXACT SAME AMOUNT OF REVENUE AS WAS IN THE, UM, PROPOSED AT THE BUDGET WORKSHOP. AND THAT RATE WOULD BE 60.8931. IT'S A REDUCTION OF JUST UNDER EIGHT TENTHS OF A CENT. AND AGAIN, THAT WOULD GENERATE THE SAME REVENUE THAT WAS DISCUSSED AT THE BUDGET WORKSHOP, UH, THE PROPERTY TAX RATES. SO THE NO NEW REVENUE REVENUE TAX RATE, THESE HAVE CHANGED SLIGHTLY BECAUSE OF THE VALUES FROM THE CENTRAL APPRAISAL DISTRICT BASED ON THE ACTUAL VALUES. SO THE NO NEW REVENUE TAX RATE AND THE VOTER APPROVAL TAX RATE ARE SLIGHTLY LESS THAN WHAT THEY WERE PRESENTED AT THE BUDGET WORKSHOP. AGAIN, THAT'S TOTALLY DEPENDENT ON THOSE CHANGES, UH, POSITIVE VARIANCE AND VALUES AS THE VALUES GO UP. THOSE CALCULATED RATES GO DOWN, UH, AND AGAIN, THE PROPOSED RATE OF 61.6878, UH, PROPERTY TAX REVENUES. AND THIS IS BASED ON THE CERTIFIED VALUES THAT WE RECEIVED ON AUGUST 20TH AND THE PROPERTY TAX RATE OF 61.69 CENTS. SO GENERAL FUND, UH, WOULD BRING IN $19.9 MILLION, UH, ECONOMIC DEVELOPMENT FUND, UH, $1,127,000 INFRASTRUCTURE INVESTMENT, $295,000. AND THEN THE DEBT SERVICE FUND AT $7,965,000 FOR A TOTAL TAX REVENUE OF $29,323,000, WHICH IS AN 8% INCREASE FROM THE PRIOR FISCAL YEAR. UH, HERE'S A GRAPH DEPICTING THE PROPERTY TAX RATES. THE BLUE SECTION IS THE M AND O SIDE TO FUND MAINTENANCE AND OPERATIONS. AND THEN THE GREEN BAR IS THE INTEREST IN SINKING SIDE. THIS IS A COMPARISON OF OUR COMPETITOR CITIES AND THEIR FISCAL YEAR 2021 TAX RATES. UM, SOME OF THEM, IT LOOKS LIKE THERE'S JUST A FEW THAT WE WEREN'T ABLE TO GET [00:15:01] A PROPOSED RATE FOR. AND THEN THE ONES, THE ONES THAT HAVE AN ASTERICK, THERE ARE THE ONES THAT WE DON'T HAVE A PROPOSED RATE FOR THE ONES THAT DON'T HAVE AN ASTRO WHO ARE AT LEAST ABLE TO GET A PROPOSED RATE FOR MOST OF THESE, ALL OF THESE ENTITIES HAVE NOT ADOPTED THEIR TAX RATES AS OF, AS OF YET. AND THESE ARE, THIS IS THE SAME COMPARISON, BUT RATHER THAN OUR COMPETITOR CITIES, THIS IS DALLAS COUNTY. AND AGAIN, THERE'S A FEW THAT HAVEN'T ASKED YET NEXT TO THEM. WE WERE UNABLE TO GET THEIR PROPOSED RATES. SOME CITIES ARE JUST PUTTING THAT THERE, THEY'RE GOING WITH THE KNOWN REVENUE RATE OR A PERCENTAGE ABOVE THAT AGAIN, BECAUSE THEY DON'T KNOW WHAT THE VALUES WERE. SO IT'S MAKES IT MORE DIFFICULT TO CALCULATE THE RATES. SO, UH, OVERALL, UH, AS FAR AS DALLAS COUNTY GOES, WE ARE SLIGHTLY BELOW THE MEDIAN IN THE MEETING OF THOSE CITIES IN DALLAS COUNTY. AND THAT HERE IS A IMPACT ON THE AVERAGE HOMEOWNER. WE HAD REVISED THIS BASED ON THE AVERAGE TAXABLE HOME VALUE HAS DECLINED SLIGHTLY FROM WHEN WE PRESENTED THIS BASED IN, UH, OR BASED ON OUR ESTIMATES BACK IN THE BEGINNING OF AUGUST AT THE BUDGET WORKSHOP. SO BASED ON THE TAX RATE OF 61.6, EIGHT, SEVEN, EIGHT, AND THE AVERAGE TAXABLE HOME VALUE OF $335,597, THE AVERAGE HOMEOWNER WOULD, UH, WOULD PAY TO $2,070 IN PROPERTY TAXES, WHICH IS AN INCREASE OF $145. WE'RE ABOUT $12 AND 8 CENTS PER MONTH THAN FISCAL YEAR 22, STEVEN. YES, SIR. JUST BASICALLY AFTER BOWL'S DEATH EXEMPTION, THAT'S CORRECT AS SENIOR CITIZENS, THAT'S CORRECT JUST AS THIS HAS ALL OF THESE AND THEN COMBINED PROPERTY TAX TAX RATES FOR DALLAS ISD, WE'RE ABLE TO GET SOME UPDATED TAX RATE INFORMATION FOR THEM. THEY ARE DROPPING THEIR TAX RATE BY, UH, A COUPLE OF PENNIES. UH, WE HAVE OUR PROPOSED TAX RATE FOR THE TOWN OF ADDISON AND THEN THE OTHER THREE TAXING ENTITIES THAT, UH, ARE IN DALLAS COUNTY. UH, WE DON'T HAVE A REVISED RATE YET FOR THEM. SO THOSE HAVE REMAINED AT THEIR CONSTANT LEVELS. SO THIS IS A, UH, ABOUT AN OVER A ONE AND A HALF CENT REDUCTION FROM WHAT WE SHOWED BACK AT THE BUDGET WORKSHOP. AND THAT'S PRIMARILY RELATED TO THE DALLAS ISD TAX RATE, UH, DECLINING IS THAT BEEN ADOPTED WITH DALLAS ISD. I COULDN'T FIND THAT IT HAD BEEN ADOPTED, BUT IT WAS IN THEIR PROPOSED BUDGET. AND THAT CONCLUDES THE PROPERTY TAX PRESENTATION. I'D BE HAPPY TO ANSWER ANY QUESTIONS YOU MAY HAVE. HOW DOES, HOW DOES THE OVERALL TAX RATE COMPARISON TO 2021 AS PROPOSED IS THE LAST LAST LINE COMPARED TO 2021? WE GOT LAST YEAR WHEN I WORKED TWO 54 OH FIVE DECEMBER, WHAT THAT WAS, I CAN LOOK THAT UP. SO LAST YEAR I KNOW WHEN IT WAS PRESENTED, IT WAS UNKNOWN WITH DALLAS ISD. HIS TAX RATE WOULD BE, BUT WHAT WAS IT? IT WAS ONE BASKET AND ONE PUT IT ENDED UP WHAT DID THERE'S IN THAT DAY? WHAT, WHAT WERE IN TOTAL? WHAT WAS THE TOTAL, THE TOTAL TAX RATE WITH EVERYTHING WE'LL ASK YOU, WHAT WAS THE, WHAT ARE WE GETTING A BILL ON? I GUESS THE BIRTH STAYED THE SAME. WE'RE GOING UP POTENTIALLY 2 CENTS AND THEN WENT DOWN TO, I ASSUME IT'S GOING TO BE ABOUT THE SAME AMOUNT LAST YEAR, 20, 20, 20, 20, 21. IT SHOULD BE CLOSE TO THAT TWO 54, RIGHT? IT WAS SLIGHTLY ABOVE THAT. AND I CAN GIVE YOU THE TOTAL RATES IS GOING TO GO DOWN. IT TALKED ABOUT COMBINED TAX RATE COMBINED BY THE TAX DOWN TO 54 CENTS. I THINK IT WAS AT LEAST THE NUMBER WE SHARED PUBLICLY WAS TWO 54 76, 18. YEAH, NO, THAT'S WHAT I'M SAYING. THAT'S WHAT WE SHARED LAST YEAR. OKAY. SO THE POINT BEING IS THAT OUR TAX RATE FOR THIS YEAR WILL TOTAL RATES GOING TO BE LESS THAN A LITTLE BIT BARELY LASTS ABOUT BASICALLY NOT THE SAME AS IT WAS LAST YEAR FOR ALL ORGANIZATIONS. I'M JUST RIGHT, RIGHT [00:20:04] QUESTION FOR STEVEN. I HAVE QUESTIONS ABOUT TAX RATES. AFTER WE TALKED ABOUT BUDGET, THERE WAS A QUESTION ABOUT A COMPARISON OF OUR TAXES OR A TAX RATES, EXCUSE ME, RELATIVE TO OUR COMPETITOR CITIES, AS WELL AS THE COUNTY CITIES OF DALLAS COUNTY. IF WE ADJUSTED OUR TAX RATE FOR THE HOMES THAT EXEMPTION. SO NOW WE HAVE THIS INFORMATION, WE'D LIKE TO SHARE A RESPONSE THAT, SO THIS IS, THIS IS A SIMILAR SLIDE, BIGGER. UM, THIS IS A SIMILAR SLIDE THAT THAT WAS JUST SHOWN, BUT THIS TAKES INTO ACCOUNT THE HOMESTEAD EXEMPTIONS, BECAUSE A LOT OF THESE CITIES EITHER DON'T HAVE A HOMESTEAD EXEMPTION OR THEY HAVE A LOWER ONE. SO ADDISON HAS THE MAXIMUM HOMESTEAD EXEMPTION OF, OF 20% OF THE APPRAISED VALUE. UH, IF YOUR HOMESTEAD ELIGIBLE THAN, THAN YOU'RE ABLE TO REDUCE THAT VALUE BY 20%. SO THE CITIES THAT DO HAVE A HABIT, 20% HOMESTEAD EXEMPTION HERE ARE ADDISON CARROLLTON, IRVING FARMERS, BRANCH, AND THEN GRAPEVINE PLANO IN UNIVERSITY PARK. SO THESE RATES HAVE BEEN ADJUSTED. THE BLUE BAR IS THE TOTAL TAX RATE. AND THEN THE GREEN BAR IS WHAT, THAT, THAT RATE APPLIED TO A PROPERTY WITH A HOMESTEAD EXEMPTION. WE'RE NOT A HOMESICK CONNECTION THAT WOULD BE BASED ON THE AMOUNT OF THAT HOMESTEAD EXEMPTION. SO, SO THAT DROPS OUT US AND DOWN FAIRLY SIGNIFICANTLY BECAUSE OF HOMESTEAD. EXEMPTION IS BASICALLY REDUCING THE TAX RATE FOR, UH, THE HOMESTEAD ELIGIBLE FOLKS BY 20%. SO THE ADJUSTED TAX RATE FOR ADDISON WOULD BE LITTLE OVER 49 CENTS, 49.30 CENTS COMPARED TO PREPARE YOUR STUDENTS TO REQUEST ONE MORE TIME ON THAT. SO THE, IF YOU ADJUSTED OUR, OUR ADJUSTED TAX RATE, IF YOU WORK AT, IN COMPARED TO OUR OTHER CITY, OUR COMPETITOR CITIES WOULD BE A LITTLE OVER 49 CENTS, 49.30 CENTS AFTER ADJUSTED. THAT'S CORRECT. WE DIDN'T DO IT FOR ANYTHING ELSE. IT'S JUST FOR THE HOMES. I SAID, OKAY, THANKS. AND THEN THIS IS THE SENSE THAT THOSE ARE 20 20% CORRECT. AND THIS IS THE SAME, THE SAME SLIDE EXCEPT DALLAS COUNTY CITIES, NOT OUR COMPETITOR CITIES. SO THERE'S IN DALLAS COUNTY, EVEN THERE THERE'S FEWER CITIES THAT HAVE A HOMESTEAD OR ONE OF THE MAXIMUM 20%, UH, THE CITY OF DALLAS DOES, UH, AGAIN, TOWN OF ADDISON CARROLLTON, URBAN FARMERS BRANCH, AND THEN GRAPEVINE UNIVERSITY PARK AND HIGHLAND PARK DEED. BUT ALL OF THE OTHER CITIES IN DALLAS COUNTY DO NOT HAVE THAT MAXIMUM 20%. THERE'S, THERE'S A COUPLE THAT HAVE 10%. UH, THERE'S SOME THAT HAVE A LOT THAT HAVE NONE. UM, BUT, BUT OVERALL YOU CAN SEE ALL THAT IMPACTS, UH, THE OVERALL TAX RATE. THAT'S APPLIED TO THOSE PERSONS, ALL THE SENIOR CITIZENS. SO WE'RE GIVING 50,000 FOR THE OTHER CITY TOO. AND THAT I DIDN'T PUT IN HERE BECAUSE THAT'S A DOLLAR AMOUNT OFF THE PROPERTY RATHER THAN A PERCENTAGE. SO IT'S A PRETTY DIFFICULT . SO, UM, THERE, THERE ARE A LOT OF CITIES THAT DO OFFER, UH, THOSE KINDS OF THINGS, EXEMPTIONS AS WELL. UM, I DON'T HAVE A LIST FOR DALLAS COUNTY, BUT I DO HAVE ONE AND I DON'T THINK I HAVE IT AVAILABLE TO ME RIGHT HERE, BUT I DO HAVE ONE THAT I CAN, THAT I COULD SEND OUT THAT HAS NOW WHAT OUR COMPETITOR CITIES DO AS FAR AS SENIOR AND DISABLED PERSON WHO'S AS FAR AS EXEMPTIONS. HEY, STEPHEN, DO YOU MIND GOING BACK TO THE BUDGET, UH, POWERPOINT PRESENTATION ON PAGE NINE. OKAY. YOU HAVEN'T MADE THAT PRESENTATION ON THE TAX RATE, THE PRISON. I'M SURE THE PRESENTATION WAS JUST SHOWING UP AS THIS ONE. YEAH, YEAH. THAT'S YEAH. THANK YOU. UM, YEAH, THE POINT I WANT TO MAKE OUT IS WE DON'T WANT TO MAKE IS IF WE LOOK AT THE TAX RATE FROM A COMMERCIAL STANDPOINT, [00:25:01] AND I THINK, UH, MY MEMORY SERVES ME CORRECTLY THAT OUR BUSINESSES ARE PAYING WHAT, 86% OF OUR PROPERTY TAX REVENUE THAT IS JUST COMING OUR WAY. WE LOOK AT IT FROM THAT STANDPOINT. UM, I, IT'S KINDA THE SAME THING OF SAYING LAST YEAR. I'M REALLY FROM A BUSINESS ENVIRONMENT. I'M REALLY CONCERNED ABOUT, UH, SOME OF THESE CITIES, JUST NORTH OF THE TOLL WAY FROM US, LIKE PLANO AND FRISCO. UM, I JUST KIND OF MAKES ME NERVOUS AT SOME POINT. UM, I JUST DON'T WANT TO GIVE HIM ANY MORE INCENTIVE TO, UH, FOR BUSINESSES TO MOVE UP JUST NORTH OF US, UM, RATHER THAN MOVE TO ADDISON OR STAY IN ADDISON. SO THAT'S, THAT'S SO POINT I WANT, DID YOU NOTICE HOW LOW THE TAX RATE FOR UNIVERSITY PARK DID YOU KNOW THIS? BECAUSE THE PROPERTY VALUE IS SO HIGH, SO IT JUST NEEDED A SO LOW TAX RATE. THEY CAN GET ALL THAT REVENUE ENOUGH REVENUE TO MANAGE THE CITY. SO I WONDERED SOMETIMES WITH THE, IF IT WERE IN DOLLARS, WHICH I'M NOT REQUESTING A, THE AVERAGE TAXES PAID OR THOUGHT ABOUT THAT TO BE A VERY DIFFERENT CHART, ANY MORE DISCUSSION. SO THIS IS LISTED HERE. I STILL NEED THAT OPENED UP. RIGHT? SO MAYBE EVEN GENTLEMEN, THIS ITEM IS LISTED IN THE PUBLIC HEARING. IF ANYONE WISH TO SPEAK ON THIS SIDE AND PLEASE DO SO, DO WE NEED A WAY TO BOOK A LITTLE BIT? ANYBODY CALLING NOBODY'S CALLING? NO ONE CALLED ME. I MEAN, DO WE KNOW IF ANYBODY'S ON HIM? NO, NOBODY, NOBODY OUT ON THE PHONE. LET'S GO TO THE SECOND ITEM. WE CAN EITHER CLOSE YOUR EYES CLOSE THIS. I JUST HAVE ONE, I NEED ONE MORE CLARIFICATION. IF I COULD ON THAT, ON THAT SAME AS SLUMPS OR IN THE SAME PRESENTATION THAT YOU JUST HAD ON, ON PAGE FIVE RIGHT HERE. WE, AND WE ALSO, WE ALSO WAS SENT US AN EMAIL ON AUGUST 21ST ABOUT BASICALLY THE, UH, THE DEAKIN CERTIFIED VALUES CAME IN MUCH GREATER. AND SO MY QUESTION IS, IS I DON'T UNDERSTAND THIS ON THE TAX RATE CERTIFIED VALUES COLUMN, TOTAL TAX RATE, WE'VE GOT 0.608931. UM, AND ARE WE PROPOSING TO, FOR THAT TO BE OUR TAXES? OKAY. THAT IS WHAT, WHAT THAT REFLECTS IS WHAT THE COUNCIL CAN ADOPT THE TAX RATE APP AND FUND EVERYTHING THAT WE TALKED ABOUT AT THE BUDGET WORK SESSION. SO IF THE COUNCIL SAYS, WE WANT TO DO WHAT WE SAID AT THE COUNCIL AT THE WORK SESSION AND USE A RATE OF 68, NINE 31, THEN THE COUNCIL WOULD SAY, LET'S PURSUE THAT TAX RATE AT THE DOUBTS AT THE BACK AT THE BUDGET WORK SESSION. THE COUNCIL TALKED ABOUT IN TAX RATE OF 61, 68, 78, UNDERSTANDING THAT THAT WAS THE NUMBER THAT WAS REQUIRED. NOW, IF THE COUNCIL WANTS THAT REVISIT CONVERSATIONS ABOUT, YOU KNOW, WHATEVER IN THE BUDGET AND SAY, WE WANT TO STAY CLOSER TO THE 61 68, 78 NUMBER FOR WHATEVER REASON, THE COUNCIL HAS THE DISCRETION TO HAVE THAT CONVERSATION. BUT IF THE COUNCIL SAYS, YOU KNOW WHAT WE'RE DONE WITH THAT WITH, WITH, YOU KNOW, ANY ADDITIONAL CONVERSATIONS ABOUT, YOU KNOW, COMPENSATION WAS A BIG, WAS A BIG PART OF THE CONVERSATION ON, ON THE SIXTH WE'RE DONE WITH THAT CONVERSATION FOR NOW, WE'RE SETTLED. WE WANT TO BE ABLE TO FUND WHAT WE SAID WE WOULD ON THE 26TH, EXCUSE ME, AUGUST 6TH. UH, BUT WITH THIS, UH, LOWER TAX RATE, THEN LET US KNOW HIM. HE WILL UPDATE THAT FOR THAT. OKAY. AND MY FOLLOW UP QUESTION IS I KNOW THAT WE HAD TO PUT TOGETHER A BUDGET WITHOUT THE FINAL DECAF NUMBERS AND THE FINAL DECAL NUMBERS CAME IN. AND SO THAT WE'RE, WE'RE, WE'RE TALKING ABOUT THIS TOTAL TAX RATE ARE 0.608931 TO FUND THE BUDGET. NOW IS THIS 0.6608931. IS THAT YOUR NEW CITY MANAGER PROPOSED TAX RATE OR IS IT THE INITIAL ONE? NO, THAT'S JUST THE UPDATED RATE WITH THE NEW VALUES. THE COUNCIL ON THE SIXTH SAID, WE WANT TO DO A TAX RATE OF 61 68, 78 TO FUND THE THINGS THAT WE WANT BASED ON THE [00:30:01] BASE ON THE COMPENSATION NUMBERS. 16.8931 CAN GENERATE THE SAME AMOUNT OF REVENUE. SO, SO WHEN THE NEW APPRAISAL VALUE, WHICH IS A $62.5 MILLION MORE, SO IF THAT'S WHAT IT'S CALLED, SO CHOSE. YEAH. LIKE I UNDERSTAND THAT THE SLIDES ARE THROWING ME OFF BECAUSE WE'RE USING IT 0.61 AND THEN WE'RE ROUNDING IT UP. AND IT JUST GIVES A USABLE THE COLUMN. NOW THAT SAYS THE PROPOSED TAX RATE. YEAH. IT'S THE ONE THAT, I MEAN, THAT'S CURRENTLY CORRECT. RIGHT? THE 60 CENTS IS NEW INFORMATION. WE'RE SHARING WITH YOU. IF THE COUNCIL WANTS TO PURSUE THE NEW RATE, THEN WE CAN HAPPILY TALK ABOUT THAT, WHERE I'D LIKE TO GO. AND I'M NOT SURE IF THIS IS THE POINT THAT I'D LIKE TO TALK ABOUT GOING WITH THE TAX CERTIFIED VALUE RATE FOR M AND O AND IT'S AN OPERATIONS PLUS THE PREVIOUS INTEREST IN SINKING. AND I'M NOT SURE IF THIS IS THE POINT TO TALK THROUGH WHY I THINK THAT MIGHT BE WORTH CONSIDERING, OR IF THAT'S BETTER AFTER WE WORKED THROUGH THE BUDGET, I GUESS I'LL SAY IT SINCE, SINCE WE'RE THERE. BUT I WAS GOING TO FOCUS ON THIS SLIDE AFTER WE DID THE BUDGET. BUT THE REASON THAT THE INTERESTING INTEREST IN SINKING IS BECAUSE IN ONE OF THE COMMUNICATIONS WE RECEIVE FROM OUR CITY MANAGER WEST, WAS THAT THE RESERVE ON THE DEBT FUND IS LOW. AND SO THERE'S A PRETTY STRONG ARGUMENT FOR IT STICKING WITH THE 0.167567 ON THAT FUND. WHEN I WOULD ADVOCATE ON THE MAINTENANCE AND OPERATIONS, WE GO WITH THE TECH CERTIFIED GENERATES ENOUGH INCOME WITH THE POSSIBLE EXCEPTION OF THE DISCUSSION OF THE DECISION POINT AND THE BUDGET PACKAGE ABOUT INSURANCE THAT'S COMING. SO IT'S TWO PRESENTATIONS. SO THAT'S CROSSING THE TWO TOGETHER AND I UNDERSTAND WHY IT'S DONE THAT WAY, BUT I JUST THROW THOSE OUT FOR DISCUSSION AND THE NO TECH CERTIFIED INTEREST IN THINKING, WAIT ONE SIX, SEVEN, FIVE, SIX, SEVEN TO THE SLIGHTLY DIFFERENT RATE. SO TO HELP HOPEFULLY FACILITATE THE CONVERSATION. I THINK, I THINK IT WOULD BE APPROPRIATE TO HAVE EACH OF THE PUBLIC HEARINGS CLOSE, CLOSE EACH OF THEM. AND THEN IF THE COUNCIL WANTS TO COME BACK AND DISCUSS, FOR EXAMPLE, CHANGES, CHANGES TO THE TAX RATE. AFTER WE HAD THE CONVERSATION ABOUT THE BUDGET, WE CERTAINLY CAN DO THAT, BUT I, BUT I DON'T WANT IT JUST TO CONFUSE THE PUBLIC HEARINGS BECAUSE I THINK THEY NEED TO BE SEPARATE MY COMMENT. CAUSE I THINK IT WILL BE CONFUSED. LET ME CLOSE THE PUBLIC HEARING. OKAY. THIS IS GOING PROBABLY WISH TO SPEAK ON THIS ITEM. I HEREBY CLOSE THE PUBLIC GROUP. SO THE NEXT ITEM STEVEN SAYS, I ALREADY READ THAT SECOND LINE SO WE CAN CONTINUE WITH THE PRESENTATION. THANK YOU, MAYOR SPEAKING. YES. CLOSE THAT PRESENTATION. CLOSE THE ONE, ONE. GOTCHA. THANK YOU. OKAY. SORRY ABOUT THAT. THANK YOU, MAYOR. AND THIS IS THE, UM, PRESENTATION RELATED TO THE OVERALL BUDGET FOR THE PUBLIC HEARING AND A LITTLE BIT GOOD NEWS. SO, SO IN BETWEEN OUR PROPOSED BUDGET WORKSHOP AND TODAY'S PUBLIC HEARING, WE GOT SOME INFORMATION ON HEALTH INSURANCE. AND WHAT WE HAD IN THE BUDGET INITIALLY WAS A 5% INCREASE IN HEALTH INSURANCE FOR THE GENERAL FUND. THAT WAS ABOUT $113,000. UH, WHAT, WHAT THE ACTUAL INCREASE IS GOING TO BE A ZERO PER CENT. SO THAT'S A, A SAVINGS OF ABOUT $113,000 THERE. SO WE CAME UP WITH THREE DIFFERENT SCENARIOS THAT, UM, MAY BE APPROPRIATE TO DO WITH THAT $113,000. ONE IS YOU DON'T HAVE TO DO ANYTHING IF YOU, IF YOU DON'T WANT TO. UM, SO YOU CAN LEAVE THE BUDGET AS PROPOSED. UM, THE OTHER, THE OTHER SCENARIO WOULD BE TO REALLOCATE THAT SAVINGS, UH, INTO THE MERIT POOL, WHICH IS THE EQUIVALENT OF, OF A HALF OF A PERCENT. AND THE OTHER SCENARIO WOULD BE TO REDUCE THE BUDGET BY THE $113,000. [00:35:01] IN WHICH CASE YOU COULD ALSO REDUCE THE TAX RATE BY 0.2, THREE SEVEN, SIX OF ONE, A STAFF SUMMARY. SO OVERALL STAFFING IS GOING UP NINE FTE. THE MAJORITY OF THAT IS DUE TO THE TAKING ON OF THE AIRPORT EMPLOYEES. SO IN TOTAL 14, EMPLOYEES ARE JOINING FROM THE AIRPORT, UH, THAT ARE NOW GOING TO BE TOWN EMPLOYEES. THE OTHER EMPLOYEES ARE CAPITAL PROJECTS FUND. UH, THERE THERE'S TWO ADDITIONS THERE. UH, THERE'S AN EIGHT FTE REDUCTION IN THE HOTEL FUND AND THERE'S ONE NEW AND THE UTILITY FUND. AND THEN ALL OF THE OTHER THINGS CHANGES ARE RELATED TO THE REALLOCATION OF THE GENERAL FUND TO AIRPORT AND UTILITY FUND RELATED TO, UH, BETTER ALIGNING THOSE PERSONS WITH THEIR ACTUAL JOB DUTIES. THIS IS A GRAPHICAL REPRESENTATION OF THAT. AND YOU CAN SEE THE NINE FT FTE INCREASE FROM FISCAL YEAR 20 TO FISCAL YEAR 21. AND THEN THIS IS A DETAILED DEPARTMENTAL STAFFING SUMMARY. AGAIN, THE OVERALL INCREASES THE NINE FTES AND THE MAJORITY OF THAT IS DUE TO THE AIRPORT. HERE'S A GENERAL FUND OVERVIEW. THE OUTSIDE OF THE CIRCLE IS REVENUE. AND THEN THE INSIDE IS WHERE THE MONEY'S GOING. THE EXPENDITURE SIDE PROPERTY TAX MAKES UP $19.8 MILLION, THE LARGEST REVENUE SOURCE SALES TAX TAXES AT $12.3 MILLION OTHER TAXES, WHICH ARE MIXED BEVERAGE TAXES ARE 1 MILLION. AND THEN WE HAVE FRANCHISE FEES, LICENSES, AND PERMITS AND FINES AND PENALTIES MAKING UP THE REMAINDER OF THE REVENUE SIDE. AND THEN ON THE EXPENDITURE SIDE, PUBLIC SAFETY, YEAH IS OVER 50% OF THE TOTAL, UH, WITH POLICE BEING 11.4 MILLION, UH, FIRE DEPARTMENT, 8.5 MILLION AND THEN GENERAL GOVERNMENT AT 9 MILLION PARKS AND REC AT 6.1 MILLION AND THEN STREETS AND DEVELOPMENT SERVICES AT ROUND OUT THE EXPENDITURE SIDE. AND THEN THE GENERAL FUND OVERVIEW, TOTAL REVENUE. AND THIS IS BASED ON THE TAX RATE OF 61 68, 78 WITH THE CERTIFIED TAXABLE VALUES THAT GENERATES OVERALL AD VALOREM TAXES OF $19.8 MILLION, WHICH IS A $1 MILLION INCREASE FROM THE PRIOR YEAR SALES TAXES ANTICIPATED TO DECREASE $1.4 MILLION, BUT IN TOTAL REVENUE IS EXPECTED TO BE BASICALLY THE SAME. AND THEN ON THE EXPENDITURE SIDE, REVENUE OR EXPENDITURES ARE, ARE BASICALLY DECREASING BY ABOUT 0.3 MILLION. AND THAT, THAT IS INCLUDING THE 2% MERIT ALLOCATION. UH, THERE WERE, THERE WERE OTHER SAVINGS THAT WERE FOUND THROUGH CONTRACTUAL SERVICES AND THINGS LIKE THAT THROUGHOUT THE BUDGET PROCESS. SO OVERALL RIGHT NOW, THE REVENUE IS EXCEEDING THE EXPENDITURE SIDE BY ABOUT $300,000. AND HERE'S A GRAPHICAL REPRESENTATION OF THE GENERAL FUND REVENUES. NOW YOU CAN SEE AT THE WARM TAXES OR INCREASING THE SALES TAX, THEY'RE DECREASING, THE BLUE BAR IS FYI 19. ACTUALLY A YELLOW BAR IS A FISCAL YEAR OF 2020 BUDGET. AND THE GREEN BAR IS THE PROPOSED BUDGET. SO SOME OF THOSE, UH, AS FAR AS THE YELLOW BAR WILL, WILL CHANGE WHEN WE GET ACTUAL DATA IN FOR THE END OF THE FISCAL YEAR, THOSE TWO MAJOR REV REVENUE SOURCES. YOU CAN SEE THE CHANGES THERE, ALL OF THE OTHER REVENUE SOURCES, THERE'S NOT A SIGNIFICANT CHANGE, UH, ONE WAY OR THE OTHER. AND THEN ON THE PROPOSED EXPENSES SIDE, UH, PERSONNEL SERVICES MAKE UP 64.4% OF THE OVERALL BUDGET. CONTRACTUAL SERVICES ARE 18.6% MAINTENANCE IS 9.3 SUPPLIES IS 4%. AND THEN OUR CONTRIBUTION TO OUR CAPITAL LEASE OR CAPITAL REPLACEMENT HUB PROGRAM IS 3.7%. AND THEN THE SELF-FUNDED. SO THIS IS FIVE BY A TRANSFER FROM THE GENERAL FUND THAT HAS BEEN INCREASED FROM THE BUDGET WORKSHOP 2.7 MILLION $700,000. AND THAT IS DUE TO, UM, UH, AT THE AUGUST 11TH COUNCIL MEETING AND ARE RELATED TO THE CWD CONTRACT, THE REMOVAL OF THOSE TWO FTES RELATED TO THE BOLTON BRUSH PICKUP AND, UH, ALLOCATING SOME CONTRACTUAL SERVICES FOR, UH, ENHANCE STREET MAINTENANCE. SO WE HAVE A BUDGET OF JUST UNDER $300,000 FOR THAT ENHANCE STREET MAINTENANCE, SO THAT, UH, THAT REVENUE SOURCE FROM THE GENERAL FUND HAS BEEN INCREASED TO MATCH THAT EXPENDITURE. AND THEN TOTAL EXPENDITURES ARE 1.2 MILLION [00:40:02] AND OVERALL, UH, DRAW DOWN IN FUND BALANCE OF ABOUT HALF A MILLION. AND LET'S SEE THE OTHER PROJECTS. THERE ARE SPECIAL AREA STUDIES, UH, THE ADDISON CIRCLE, TRANSIT ORIENTED DEVELOPMENT, UH, CELESTIAL PARK IMPROVEMENTS. AND AS I MENTIONED, THE ADVANCED TREATMENT, HERE'S A LIST OF THOSE PROJECTS. NOTHING HAS CHANGED ON THIS SLIDE FROM THE BUDGET WORKSHOP. SO WE HAVE OUR NEIGHBORHOOD SECURITY FOR EAST ADDISON, A SMOKE DETECTOR, BATTERY REPLACEMENT PROGRAM, BALLISTIC GEAR FOR THE FIRE DEPARTMENT, UH, ADDISON CIRCLE, TRANSIT ORIENTED DEVELOPMENT, UH, THE CELESTIAL PARK IMPROVEMENTS, THOSE TOTAL $481,000. UH, THE PROJECTS THAT WE HAD AN ALLOCATION IN FISCAL YEAR 2020, AND THOSE ARE CONTINUING PROJECTS ARE THE SPECIAL AREAS STUDY. AND THEN WE'VE ALLOCATED 290, $2,000 THERE FOR THE ENHANCED STREET MAINTENANCE, UH, WHICH IS NEW. AND THAT'S THAT TOTAL IS 430, 2000 THE HOTEL FUND, UH, OVERALL REVENUE IN FISCAL YEAR 2020, UH, WAS SEVEN, UH, ANTICIPATED TO BE $7.6 MILLION. THE PROPOSED BUDGET IS AT $5.3 MILLION. THAT'S BEING REDUCED BECAUSE OF THE COVID-19 AND THE REDUCTION IN HOTEL OCCUPANCY TAX. AND THEN ALSO WITH THE CONFERENCE CENTER PROPOSED TO BE CLOSED FOR FISCAL YEAR 21, THERE IS NO REVENUE COMING IN FOR THAT. SO OVERALL, A REVENUE DECREASE OF $2.3 MILLION ON THE EXPENSE SIDE, UH, A DECREASE IN $1.7 MILLION THAT RELATES TO MOSTLY THE CONFERENCE CENTER, BUT THEN THERE'S ALSO SOME EFFICIENCIES THAT HAVE BEEN FOUND IN THE OTHER DIVISIONS OF THE HOTEL FUND, THE OVERALL REVENUE TO EXPENSE. UH, WE HAVE BUDGETED $8.2 MILLION DRAW DOWN IN FUND BALANCE, UH, FOR FISCAL YEAR 21. AND HERE'S THE PROPOSED EXPENSES BY FUNCTION. THE MAJORITY OF THE EXPENSES ARE SPECIAL EVENTS AT 44.1% MARKETING MAKES UP 20.4% AND THEN ESPECIALLY EVENTS OPERATIONS IS 17.1 AND THEN PERFORMING ARTS AT 6%. NOW THE THEATER CENTER AT 5.9 A CONFERENCE CENTER, ALTHOUGH CLOSE, THEY STILL HAVE SOME EXPENDITURES ASSOCIATED WITH THE BUILDING. SO THOSE EXPENDITURES MAKE UP 3.7% OF THE TOTAL BUDGET. AND THEN GENERAL HOTEL OPERATIONS ARE 2.8% ECONOMIC DEVELOPMENT. AND THE FUNDING SOURCES HERE, OUR AD VALOREM TAXES, AND THEN A HOTEL FUND TRANSFER. AND THIS HOTEL FUND TRANSFER AS MENTIONED AT THE BUDGET WORK BUDGET WORKSHOP IS PROPOSED TO BE $384,000, RATHER THAN THE $768,000 THAT HAD BEEN BUDGETED IN PREVIOUS YEARS. UM, AND THERE THERE'S, THERE'S TWO REASONS FOR THAT ONE. THE HOTEL FUND IS TRANSER TRANSFERRED EXCESS FUNDS TO THE ECONOMIC DEVELOPMENT FUND THAT HAVE NOT BEEN UTILIZED. SO WE'RE PROPOSING TO UTILIZE THOSE FUNDS WITHOUT TRANSFERRING ADDITIONAL MONEY. UH, AND THEN THE SECOND PART OF THAT IS IT ALLOW THE HOTEL FUND TO HOPEFULLY RECOVER A LITTLE BIT FROM COVID-19, UH, ON THE EXPENDITURE SIDE, A BUDGET OF $2.0 MILLION, WHICH IS A A HUNDRED THOUSAND DOLLARS INCREASE FROM THE PRIOR YEAR. AND AGAIN, THERE IS A, UH, PROPOSED DRAW DOWN ON THE FUND BALANCE OF, OF THAT $400,000, THE UTILITY OPERATING FUND, UH, AND THIS, THIS OPERATING FUND DOES INCLUDE A PROPOSED 6% INCREASE THE WATER AND SEWER RATES, UH, PER THE RATE MODEL THAT WAS ADOPTED IN FISCAL YEAR 2018. AND WE WOULD BRING A SEPARATE ORDINANCE ASSOCIATED WITH THAT RATE INCREASE AT THE BUDGET ADOPTION. SO REVENUES, THE $14 MILLION THAT DO INCLUDE THAT 6% INCREASE ARE FROM WATER SALES, PRIMARILY AND SEWER SALES, 7.5 AND $6.3 MILLION RESPECTIVELY, UH, AND THE MAJOR EXPENDITURES. THERE ARE EXPENSES. THERE ARE THE PURCHASES OF WATER AND THEN THE TREATMENT OF OUR WASTEWATER, UH, $3.7 MILLION FOR EACH OF THOSE SERVICES. AND THEN THE OPERATIONS COSTS TO OPERATE THE SYSTEM IS $5.0 MILLION, AND THEN $1.5 MILLION IN DEBT SERVICE. SO THE PROPOSED BUDGET INCLUDES A, UH, EXCESS REVENUE OF JUST OVER OR JUST ABOUT A HUNDRED THOUSAND DOLLARS. HERE'S HOW THE WATER AND SEWER RATE CHANGES WOULD AFFECT, UH, VARIOUS CUSTOMERS. SO A CUSTOMER THAT USES 5,000 GALLONS OF WATER IN THE SEWER PER MONTH COULD EXPECT THEIR BILL TO INCREASE ABOUT $3 AND 38 CENTS. IF THEY USE 8,000 GALLONS A MONTH, UH, THAT INCREASE WOULD BE ABOUT $3 AND 97 CENTS. AND [00:45:01] IF THEY USE 10,000 GALLONS A MONTH, THAT INCREASE WOULD BE ABOUT $6 AND 3 CENTS A STORMWATER OPERATING FUND. AND THIS FUND GETS ALL OF ITS REVENUE, BASICALLY FROM DRAINAGE FEES, WHICH MAKE UP 2.4 OF THE $2.5 MILLION REVENUE BUDGET. ON THE EXPENSE SIDE, UH, OPERATIONS ARE ABOUT 700,000 AND THEN WE HAVE DEBT SERVICE OF ABOUT HALF A MILLION. SO OVERALL THERE'S REVENUE TO EXPENSE ON THE OPERATING SIDE AT $1.2 MILLION. AND THERE WAS A SUBSTANTIAL CASH FUNDED BUDGET ON THE CAPITAL IMPROVEMENT PROGRAM, UH, FOR PROJECTS THAT ARE BEING FUNDED OUT OF STORM WATER RESERVES, THE AIRPORT FUND OVERALL REVENUE IS PROJECTED FOR FISCAL YEAR 21 TO BE 5.2 MILLION OVERALL EXPENSES ARE PROJECTED TO BE 5.1 MILLION. NOW THAT'S ABOUT A HALF A MILLION DOLLAR REDUCTION FROM THE CURRENT FISCAL YEAR. MOST OF THAT IS DUE TO TAKING ON THOSE AIRPORT EMPLOYEES OR THOSE AIRPORT THAT AIRPORT PERSONNEL IS TOWN EMPLOYEES RATHER THAN CONTRACT. UH, SO OVERALL, UH, REVENUE TO EXPENSE A POSITIVE VARIANCE OF ABOUT A HUNDRED THOUSAND DOLLARS THERE. UM, THE FUNDING SOURCES, UH, PRIMARILY ARE FROM LISA'S $4.3 MILLION AND THEN SERVICE FEES, WHICH MOST OF THOSE ARE FUEL FLOW HPS. AND THEN ON THE EXPENSE SIDE, OPERATIONS MAKE UP $4.3 MILLION OF THE, OF THE BUDGET. AND THEN DEBT SERVICE IS ABOUT 0.8 MILLION. AND THEN HERE IS OUR CAPITAL IMPROVEMENT PROJECTS LISTING FOR ALL FUNDS OVERALL, A $37.2 MILLION CAPITAL IMPROVEMENT BUDGET. UH, THE MAJORITY OF THAT COMES FROM GENERAL OBLIGATION AND CERTIFICATES OF OBLIGATION, $26.1 MILLION. THE OTHER MAJOR SOURCES ARE EXISTING UTILITY CERTIFICATES OF OBLIGATION, A $4.8 MILLION. AND THEN AS MENTIONED PREVIOUSLY STORMWATER FUND CASH RESERVES, HERE'S A BUDGET OF $2.2 MILLION. AND THEN AIRPORT FUND CASH RESERVES IS BUDGETED AT $2 MILLION TO ANSWER YOUR QUESTIONS. SO FOR OR FOLLOWING THE OVERVIEWS AWAIT, PROPOSE THIS, THAT DOES NOT INCLUDE THE REAL ESTATE SIDE, RIGHT. THE STAFF KNOW WHAT'S PROPOSED IN THE BUDGET DOES INCLUDE THE REAL ESTATE. YES. SHOULD WE DISCUSS NOW OR WAIT UNTIL AFTER THE PUBLIC HEARING, WHAT WOULD BE THE LEAST CONFUSING? OKAY. YOU WANT ME TO OPEN IT UP? JUST ASK, OKAY, GENTLEMEN, THIS ITEM IS LISTED AS PROBABLY IF YOU WISH TO SPEAK ON THIS ITEM, PLEASE DO. SO ARE THERE ANY PEOPLE LET'S JUST DISCUSS CLOSE? I GUESS THERE'S THREE THINGS THAT STRUCK ME, IS IT ALL RAISES I STARTED TO MENTION BEFORE, SORRY. THAT WAS CONFUSING WITH THE TWO PRESENTATIONS, THE DEPTH RATE, AND MAYBE STEPHEN WE'RE WEST, YOU COULD COME IN FURTHER, BUT I UNDERSTOOD FROM SOME OTHER COMMUNICATIONS THAT YOU'VE RECEIVED, THAT IT WOULD BE BENEFICIAL NOT TO CHANGE THE PROPOSED CAP RATE TO THAT. THAT WOULD TIE TO THE CERTIFIED VALUES. RATHER KEEP THE SLIGHTLY HIGHER RATE IN ORDER TO INCREASE THE RESERVE. IF YOU COULD COMMENT ON THE BACKGROUND ON THAT. SO RIGHT NOW WE DON'T HAVE REALLY ANY RESERVES IN THE DEBT SERVICE FUND. AND I LOOKED BACK TO 2015, I JUST PICKED A YEAR. AND BACK IN 2015, WE HAD ABOUT $800,000 IN RESERVES FOR THAT SERVICE FUND. THAT'S SLOWLY BEEN DRUMMED DOWN AND IT LOOKS LIKE THE MAJORITY OF THAT IS BECAUSE THE ACTUAL PROPERTY TAX COLLECTIONS HAVE BEEN LESS THAN WE BUDGETED. UM, SO THAT IS SLOWLY DRAWN DOWN THAT FUND BALANCE AND BEST PRACTICES TO HAVE AT LEAST 5% FUND BALANCE AND YOUR DEBT SERVICE FUND. AND THE REASON IS, IS BECAUSE, YOU KNOW, WHEN, AS WE DO THESE REFUNDING AND REFINANCING TRANSACTIONS, SOMETIMES YOU HAVE TO MAKE A CASH CONTRIBUTION TO THOSE ESCROW ACCOUNTS IN ORDER TO COMPLETE THOSE TRANSACTIONS. AND IT JUST MAKES IT EASIER TO USE THE DEBT SERVICE FUND RATHER THAN ASKING FOR A LOAN OR SOMETHING FROM THE GENERAL FUND IN ORDER TO COMPLETE THAT TRANSACTION. SO, UM, AND THEN ALSO IF YOU'RE, IF YOU'RE, UH, COLLECTIONS ARE [00:50:01] GOING TO BE LESS, YOU HAVE SOMETHING TO FALL BACK ON THAT RATHER THAN COMING BACK TO THE GENERAL FUND, A HANDOUT OR ALONE. SO, UM, DOES THAT ANSWER YOUR QUESTION? YES, IT DOES. SO THE RATE THAT IS CALCULATED AND I UNDERSTAND DALLAS COUNTY CALCULATES THAT RATE, CORRECT OR SO, SO WHAT'S WHAT WE'RE REQUIRED TO, UH, POST ON, UM, ON OUR WEBSITE IS A CALCULATION FROM DALLAS COUNTY. BASICALLY WHAT WE DO IS WE GIVE THEM WHAT ARE ANTICIPATED DEBT SERVICES AND WHAT THEY DO IS THEY TAKE A, NOW THIS YEAR, THEY TAKE THE CERTIFIED ESTIMATE THAT WE GOT AND THEY TAKE THAT, THAT ANTICIPATED DEBT SERVICE AND DIVIDED BY THE CERTIFIED ESTIMATE THAT COMES OUT TO WHAT THE TAX RATE IS. SO THAT'S THE MAXIMUM TAX RATE THAT YOU COULD ADOPT RYAN'S INTEREST IN SEEKING? YES. SO, UH, STEVEN, COULD YOU, I THINK THERE MAY BE A LITTLE BIT OF, AT LEAST I'VE, I'VE HEARD A QUESTION, BUT I HAVEN'T QUITE HEARD THE ANSWER. SO, UM, COULD YOU TALK A LITTLE BIT ABOUT WHAT, IF ANYTHING, THAT YOU, THE PROPOSED THAT THE PROPOSED TAX RATE OF 1657 IN CHANGE, UH, WITH, UH, WOULD RAISE IN, IN, UH, AN EXCESS FOR A, UM, UH, A FUND BALANCE. AND CAN YOU TALK ABOUT WHAT, IF ANYTHING WOULD BE RAISED IN EXCESS FOR THAT THE LOWER RATE WITH THE NEW CERTIFIED BATTERY DISPENSE? SO, SO USING THE, UH, DEBT SERVICE INTEREST IN SINKING TAX RATE, THAT WAS IN THE PROPOSED BUDGET OF 16.76 CENTS, UH, THAT WOULD GENERATE AN ESTIMATED ENDING FUND BALANCE OF ABOUT $293,000, UH, FOR FISCAL YEAR 21. UH, NOW REDUCING IT BASED ON THE CERTIFIED VALUES THAT WE RECEIVED ON AUGUST 20TH, TWO 16.5446, THAT WOULD REDUCE THAT DOWN TO AN ENDING FUND BALANCE OF ABOUT $192,000. SO, UM, ABOUT A HUNDRED THOUSAND DOLLARS DIFFERENCE BETWEEN THE TWO. AND AS I MENTIONED BEFORE, RIGHT NOW, WE'RE, WE'RE SITTING AT ABOUT $10,000 IN FUND BALANCE. SO, UM, SO NEITHER OF THESE SCENARIOS TAKE INTO EFFECT INTO ACCOUNT THE BONDS THAT WE JUST HAD ON AUGUST 11TH, WHICH WE FARED MUCH BETTER THAN WE ANTICIPATED. SO THAT WILL CREATE SOME, SOME ADDITIONAL FUND BALANCE AS WELL. WHAT'S THE, WHAT'S THE MOUNT FOR THE 5% TARGET? WHAT WOULD THE TOTAL BE 5%, IT'D BE A LITTLE BIT UNDER $400,000 TO THAT, TO THAT END. I'M IN FAVOR OF I'M LANDING ON THE IMS PROPOSED TAX RATE PER THE 16.75. I FEEL MORE COMFORTABLE AT LEAST HAVING THAT AS A THREE AND A HALF PERCENT. I CAN'T HAVE THE FULL 500,000. WHAT PERCENTAGE DO YOU RECALL THAT THAT WAS CLOSER TO 10%? SO YOU REALLY DON'T WANT TO EXCEED 10%. YOU WANT IT TO BE SOMEWHERE IN BETWEEN AND 10 THAT'S WHAT A GOVERNMENT FINANCE OFFICERS ASSOCIATION RECOMMENDS. UM, BUT YOU KNOW, IF YOU GET, IF YOU GET OVER THAT 10% THRESHOLD, THEN YOU CAN, UH, REDUCE YOUR TAX RATE A LITTLE BIT ON THE INS SIDE AND BRING IN LESS REVENUE AND HAVE MORE EXPENDITURE AND REDUCE THAT BALANCE THAT WAY. UH, DOES THAT MAKE SENSE? AND WHAT WAS THE LAST TIME YOU WERE AT 10%? I'D HAVE TO GO BACK AND CHECK. IT WAS COMING DOWN ABOUT $200,000 A YEAR. ON AVERAGE, I I'D HAVE TO GO BACK AND CHECK AND SEE EXACTLY WHAT EACH YEAR WE WENT BELOW THAT THRESHOLD. SO STEVEN YOU'RE SAYING THAT WE WERE GOING TO ACTUALLY BE THE GOLD STANDARD OF FINANCIAL HEALTH, WHICH IS ONE OF OUR PILLARS, RIGHT? THE, EVEN, EVEN USING THE ORIGINAL LIONESS TAX RATE IS STILL INSUFFICIENT, CORRECT? TO GET US TO THE LOWER PART OF THE FIVE TO 10%. YEAH. DELTA THAT YOU'RE TELLING US IS, IS, IS THE GOLD STANDARD, IS THIS IS THE GOVERNMENT FINANCE OFFICERS. AND I PRESUME RATING AGENCIES AND EVERYTHING ELSE, BUT CAN'T TELL YOU THAT. WELL, THEY TAKE INTO ACCOUNT THAT, BUT, UM, JUST REMEMBER THAT THE DEBT SERVED THE [00:55:01] FUND BALANCE, IT'S IN THE DEBT SERVICE. IT CAN ONLY BE USED FOR DEBT SERVICE. WE CAN'T SEND THAT TO THE GENERAL FUND, SO IT CAN'T BE USED TO, TO LIQUIDATE OTHER LIABILITIES. SO, UM, NOW FOR INSTANCE, THE GENERAL FUND CAN SEND MONEY TO THE DEBT SERVICE FUND. UM, BUT WE CAN'T SEND MONEY FROM THE DEBT SERVICE, BUT TO THE GENERAL FUND. AND THAT'S REALLY WHAT THE RATING AGENCIES ARE LOOKING AT IS HOW MUCH TAX DO YOU CASH? DO YOU HAVE TO PAY YOUR BILLS IF WE NEED TO COME GET OUR MONEY AND INVESTORS TO COME GET THEIR MONEY. SO, BUT THEY DO, BUT THEY DO INCLUDE THAT AS PART OF THE OVERALL FUND BALANCES THAT THEY'RE, THAT THEY'RE LOOKING AT. IT'S GENERALLY JUST SO SMALL IN COMPARISON TO A GOVERNMENT GENERAL FUND THAT HAVING, YOU KNOW, AN EXTRA $300,000 THEY ARE WHEN YOU HAVE $20 MILLION OVER HERE, IT'S NOT, IT'S NOT A SIGNIFICANT DIFFERENCE. I'M WONDERING OUT LOUD, IF IT MAKES SENSE TO LUMP THE INS RIGHT UP SLIGHTLY TO GET US TO 5%, WHAT ARE WE AT CURRENTLY 1% OR LESS? UM, HELLO? WHAT, WITH THE, WITH THE ORIGINAL PROPOSED BY THAT'S RIGHT? OR LAST TIME, THE LAST MEETING, THAT'S WHERE IT REVIEW BASICALLY 75% OF THE AT $300,000. AND HE SAID 400,000 GETS MAKING UP 75% OF OUR PRETTY BIG JUMP KNOW I WASN'T HERE. I WOULD SAY, I THINK THIS IS A SITUATION WHERE WE CAN, WE DON'T HAVE TO EAT THE ELEPHANT ALL AT ONCE AND THEY ACTUALLY CAN TAKE MY POINT. WE'RE MAKING A BIG STEP HERE TO BUY MY WELL, EVEN IF, EVEN IF, JUST TO THAT POINT, EVEN IF WE WENT WITH THE ADJUSTED INS RATE, THAT WOULD STILL BE BETTER, RIGHT? I MEAN, THAT'S, THAT'S A 50% INCREASE TO GET THAT DRIVER. SO, YOU KNOW, I, I THINK, I, I DON'T THINK ANYBODY, I DON'T THINK WE HAVE TO SOLVE THIS PROBLEM OVERNIGHT. AND, AND WE'RE REALLY NOT FISCALLY, IT'S A, I WOULDN'T EVEN CLASSIFY IT AS A PROBLEM LIKE THAT. THIS IS AN ADJUSTMENT THAT WE WANT TO MAKE, SO THAT WE'RE IN A BETTER SITUATION TO BE ABLE TO, UM, TO, TO TAKE CARE OF THINGS THAT INSTEAD OF GOING AND ASKING MONEY FROM THE GENERAL FUND. SO, UM, THIS IS, IT'S NOT A PROBLEM, IT'S AN ADJUSTMENT. AND SO IT'S A GOOD, IT'S A GOOD THING TO DO IS FOR THAT WE'RE, WE'RE, UH, YOU KNOW, WE'RE DOING THE THINGS THAT WE WANT TO DO. THE PHONE QUESTION, STEVEN, YOU COMING IN, DID YOU THINK THAT WE MAY INCREASE THIS RESERVE? THE ADJUSTMENTS ARE MADE FOR THE AUGUST 11TH ISSUE? YES. BECAUSE, AND THAT'S GENERALLY THE WAY THAT A CITY OR COUNTY GETS A FUND BALANCE AND A DEBT SERVICE FUND IS BECAUSE WHEN YOU'RE ISSUING DEBT AND IT'S CLOSE TO WHEN THE, WHEN THE CERTIFIED VALUES ARE COMING OUT. UM, SO YOU'RE GETTING AN ESTIMATE. THAT'S A VERY CONSERVATIVE ESTIMATE FROM YOUR FINANCIAL ANALYSTS. AND WHEN, WHEN THE RATES COME IN AND THE DEBT SERVICE IS GOING TO BE LOWER BECAUSE OF THAT TRANSACTION, YOU'VE GIVEN THE TAX TAXING OF THE DALLAS COUNTY TAX OFFICE, YOU KNOW, A HIGHER NUMBER, THEY CALCULATE YOUR RATE BASED ON THAT ESTIMATE, IT ENDS UP BEING LOWER. SO YOU'RE ABLE TO GENERATE A LITTLE BIT OF RESERVE, UM, FROM THE TAX RATE THAT THEY CALCULATE BASED ON SOME SAVINGS FROM THAT. SO OVERALL THE SAVINGS WAS A LITTLE OVER A HUNDRED THOUSAND DOLLARS PER YEAR. SO JUST THAT TRANSACTION GENERATE SOME, SOME BREATHING ROOM THERE. SO I ASK MY SECOND QUESTION, DAD WAS, I GUESS I'LL PUT IT FORWARD IS SOMETHING THAT MADE SENSE TO ME AND SEE IF OTHER PEOPLE THINK SO TOO THEN FOR THE ONM RAID, IF MY UNDERSTANDING IS CORRECT, WE WENT WITH THE BACK TO SLIDE FIVE THAT MARLIN HAD MENTIONED EARLIER, OH, SLIDE FIVE ON THE OTHER, THE TAX RATES ON THAT ONE. BUT IF WE WILL, THE TECH CERTIFIED THAT FOUR 43 48, FIVE FOR MNO. AND IF WE ALSO REDUCED THE AMOUNT THAT COMES FROM THE INSURANCE SAVINGS, THEN THAT RATE WOULD FUND EVERYTHING THAT'S PROPOSED IN BUDGET. IS THAT CORRECT? MAKES SENSE. SO YOU'RE, WELL, YEAH, IF YOU, IF YOU REDUCED, IF YOU REDUCE THE, THE TAX RATE THAT, YOU KNOW, 0.002, I THINK IT WAS OF A PENDING, UH, TO, TO ESSENTIALLY ELIMINATE [01:00:01] THE BUDGET AMOUNT, BUDGETED AMOUNT FOR THE INSURANCE, THEN, UH, THAT'S WHAT, HE'S HAPPY. THAT'S WHAT HE'S TALKING ABOUT. THEN THAT RATE WOULD FUND EVERYTHING FOR THE HOST IN THE BUDGET. CORRECT. WELL, WHEN YOU'RE TALKING ABOUT THAT RATE, UM, AND YOU'RE TALKING ABOUT THE 5%, THAT'S NOT VISIBLE SAVINGS. YEAH. YEAH. SO THIS, THAT SAVINGS VISIBLE. SO IF WE DID THE, UH, THE TAX RATE CERTIFIED VALUES AT THE INS PROPOSED TAX RATE, WE WOULD LAND SOMEWHERE IN THE METAL 0.611052. UM, I THINK 0.606, SEVEN SEVEN, YEAH. SIX, 7.3. IT'S A, LET'S ASK STEVEN TO CALCULATE. I APPRECIATE EVERYBODY'S. THAT WAS BEFORE THE INSURANCE. I DIDN'T KNOW. THAT'S WHY I WAS ASKING ABOUT THE INSURANCE. I WANT TO CALCULATE THAT. YEAH, I LIKE THAT THE PRODUCT MINUS THE POINT 0.608676 DOUBLE CHECK MEASURE TWICE. CUT ONCE. YUP. (666) 086-7693. ONE GOES TO SIX, SEVEN SENTENCES. YEAH. EIGHT, NINE, THREE ONE GOES TO EIGHT, SIX, SEVEN. THAT'S WHERE MY MIND GOES. OH, ANY COMMENT? WELL, UM, I'M FINE WITH THAT. YOU KNOW, IT'S MY, MY, UH, MY RECOLLECTION AND UNDERSTANDING OF WHAT WE TALKED ABOUT WAS THAT WE WERE GOING TO PUT 2% BACK BEFORE SATURDAY. AND THEN IF, DEPENDING UPON THE NATURE OF THE SUBSTANTIVE MARKET STUDY, AND IT MIGHT BE ANY DEFICIT MIGHT BE MADE UP RESERVES, IS THAT WE ALL ON THE SAME PAGE ON THAT. THAT'S MY RECOLLECTION. OKAY. WELL, GIVEN THAT UNIFORM RECOMMENDATION, AND THEN I'M FINE WITH THIS TOO. AND I THINK THAT AGENDA SPEAKS TO BEING ABLE TO ACTUALLY DO THAT AND MOVE FORWARD WITH THAT. YEAH. IT'S NOT, IT'S NOT POSTED FOR ACTION, BUT I THINK THE CONSENSUS OF THE COUNCIL WILL BE REFLECTED IN THE PUBLIC HEARING BUDGET ITEM THAT WE PUT ON COUNCIL MEETING. I MEAN, BASICALLY, WE'RE JUST, WE'RE JUST AGREEING TO WHAT WE AGREED TO LAST TIME WITH UPDATED INFORMATION, WITH THE EXCEPTION OF ADDING A LITTLE BIT OF INTEREST IN SINKING A LITTLE BIT TO GET A RESERVE, WE'RE GOING TO END UP WITH $300,000. SO ALL THAT SEEMS LOGICAL. AND WHAT WERE YOU DOING BEFORE? SO YOU CAN SHOW US PAGE TWO AGAIN AS A PAGE. NOPE. OKAY. I THINK I HAVE TO STOP SHARING, STOP SHARING QUESTIONS ON THAT. THERE WERE THREE QUESTIONS. YEAH. YEAH. THREE OPTIONS. ONE IS DO NOTHING. AND JUST LEAVE IT IN THERE TOO. WAS REALLOCATE THAT 2.2 TO COMP THE COMPENSATION POOL. AND IT WOULD EQUATE TO ABOUT 0.5, 1%, RIGHT. FOR THAT. OR YOU COULD REDUCE THE TAX RATE FROM THE 61, UH, SORRY, 61 68, 78, [01:05:01] OR EXCUSE ME, THE 60, 89 31 DOWN A LITTLE BIT IN IT'S 0.00. AND THAT WAS POLITICAL. IT WAS 112. OKAY. JUST OVER, IT WAS ALMOST A HUNDRED, JUST UNDER $113,000. THE SCREEN, IT LOOKS LIKE, YES, THIS IS APPARENTLY THE SLIDE WE'RE SUPPOSED TO LOOK AT. THAT'S AN IMPORTANT SLIDE, MOST IMPORTANT ONE. SO IN OTHER WORDS, THE NEW TAX AWAY, IF WE TAKE THAT INSURANCE SO WE CAN REDUCE THE TAX RATE, BUT THERE WERE TWO STEPS. SO YOU TAX RATE GOING TO BE 1686, 76. THAT'S CORRECT. RIGHT. AND NOT ONLY DOES THAT SHOW THE REDUCTION, ANY INSURANCE SIDE FOR THE M AND O RATE, BUT IT ALSO REFLECTS THE MMM. THE, UH, ORIGINALLY THE ORIGINAL PROPOSED INS. RIGHT, RIGHT, RIGHT. I'M SORRY. YES. YES. SO JUST RESTATE. SO THE POINT THIS, THIS SIX ZERO EIGHT SIX SEVEN SIX REFLECTS THE ORIGINALLY PROPOSED INS RATE. YES. THAT'S A GREAT REDUCTION IN THE, UH, INSURANCE, CORRECT. GETTING THEM M AND O RATE IN AN AMOUNT EQUIVALENT TO THE A HUNDRED, 113,000. YES. IT'S REDUCING THE MNO RATE ONE IT'S IT'S INCLUDED THE UPDATED CERTIFIED VALUES AND THEN TWO, IT'S REDUCING IT BY 0.002, THREE 76 FROM THE HEALTH INSURANCE SAVINGS. ANNUAL QUESTION IS OKAY. YEAH. I JUST THINK STAFF HAS DONE SUCH A GOOD JOB PROVIDING THE INFORMATION. I REALLY APPRECIATE IT. GOOD JOB TEAM. DID WE CLOSE THE PUBLIC HEARING MAYOR ON BUDGET? I HAVEN'T DONE THAT. YOU KNOW, SO ANY MORE DISCUSSION? ALL RIGHT. NO. WHY YOU WISH TO SPEAK ON THIS ITEM? HEREBY CLOSED THE PUBLIC. SO I THINK THIS IS WHERE I SHOW NOTHING ELSE. * 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.