[00:00:01]
[I. INVOCATION, PLEDGE & ROLL CALL]
AND WELCOME TO THE SPECIAL COUNCIL MEETING, UH, HERE TODAY ON AUGUST 2ND, WHICH SHOULD HAVE BEGUN AT 3:00 PM.HOWEVER, WE HAD ABOUT THREE 19 W WAITING TO BE SURE WE HAVE OUR CORE HERE IN THE CITY COUNCIL CHAMBERS AT 4 44 FOURTH STREET HERE IN THE CITY OF PORT ARTHUR.
UH, THIS MEETING MAY BE, UH, ATTENDED IN PERSON OR THROUGH THE, UH, ELECTRONIC MEDIUM, HOWEVER, A COURT MUST BE PRESENT YEAR IN COUNCIL CHAMBERS, A QUORUM OF THE ACTUAL SITTING COUNCIL FOR THIS MEETING TO BE OFFICIAL.
UH, THE PUBLIC HAVE A MAY PARTICIPATE IN THE MEETING BY DIALING, EXCUSE ME, H 7 7 8 5 3 5 2 4 7 OR 8 8 8 7 8 8 0 0 9 9.
AND YOU WOULD ENTER THE MEETING ID OF 8 2 1 0 7 8 9 3 9 6 8 IN THE PAST CODE UP 8 8 0 6 2 0.
AND WE ALSO IN COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT IN THE YOUTH MEETING, AND THEN THIS PARTICULAR SPECIAL MEETING, HOWEVER, IF SPECIAL ACCOMMODATIONS ARE NEEDED OR WOULD HAVE BEEN NEEDED, YOU MUST HAVE MADE THAT A REQUEST 24 HOURS PRIOR TO THE MEETING, UH, AT 4 9 9 8 3 8 1 1 5 WITH THE CITY SECRETARY TO MAKE THAT REQUEST KNOWN.
AND THOSE ACCOMMODATIONS WOULD HAVE BEEN PROVIDED FOR YOU ALL RIGHT, THIS TIME, WE'RE GOING TO HAVE OUR INVOCATION, UH, PLEDGE AND THEN ROLL CALL COUNCILWOMAN, UH, MOSES, WOULD YOU BE SO KIND AS TO GIVE US THE INDICATION, FATHER GOD, IN THE NAME OF JESUS, WE COME TO YOU, WE PRAY AND WE THANK YOU GOD FOR ALLOWING US FIRST OF ALL, TO BE HERE AND BE PRESENT.
WE THANK YOU ALL GOD, AS YOU WILL LEAD US THROUGH THIS BUDGET, TERRI SEASON, ALLOWING US TO MAKE THE RIGHT DECISIONS AND INFORMATIVE DECISIONS FOR THE CITY OF PORT ARTHUR.
WE PRAY THAT EVERYTHING THAT IS SAID AND DONE IN THIS PLACE WOULD BE TO A BLOWER INTO YOUR HONOR IN JESUS' NAME.
WOULD YOU PLEASE JOIN US IN THE PLEDGE OF ALLEGIANCE IN UNISON? I BRED THE 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.
THANK YOU FOR YOUR INDULGENCE AND I'LL OPEN IT.
WOULD YOU PLEASE DO THE ROLL CALL? MAYOR BHARTI MAYOR PRO TEM HOMES, COUNCIL MEMBER JONES, COUNCIL MEMBER, KEN LAW, COUNCIL MEMBER MARKS, COUNCIL MEMBER, MOSES COUNCIL MEMBER, FRANK.
[II. WORKSHOP]
ENTER INTO A WORKSHOP FOR THE FISCAL YEAR 20 TO 20 22, 20 23.AND THE EXCUSE ME, PROPOSED BUDGET.
UH, WE ALREADY SEE THE MANAGER AND CITY, UH, BURSAR OR, UH, FINANCE DIRECTOR.
IT'S IT'S ABOUT THIS TIME OF THE YEAR AGAIN, WHEN WE GET INTO THE BUSINESS OF PRESENTING THE DRAFT BUDGET FOR THE CTO FOR THE OFFICE, WE NORMALLY GO THROUGH THE PROCESS OF RESENT OF HAVING WORKSHOPS TO MAKE SURE THAT, TO MAKE SURE THAT THERE IS ADEQUATE INFORMATION AVAILABLE, BOTH TO THE COUNCIL AND TO THE CITIZENRY AT LARGE, IN THIS YEAR'S BUDGET MAYOR AND COUNCIL, WE HAVE FOCUSED PRIMARILY ON INFRASTRUCTURE IMPROVEMENTS AS WE CONTINUE TO FOCUS ON STREETS AND OUR UTILITIES DEPARTMENT.
WE DO HAVE SOME TIME THROUGHOUT THE WORKSHOPS.
WE WILL GO INTO DETAIL AS TO WHAT
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WE, UH, ADVISE IN THE COUNCIL TO INVEST OR TO CONTINUE TO INVEST FOR THE NEXT FIVE YEARS OR SO.UM, IN INFRASTRUCTURE IMPROVEMENT, WE WILL DO THAT IN DETAIL, BUT AS FROM HERE ON, WE WILL PROVIDE YOU WITH A NUMBER IN THE REGION OF SOME $37 MILLION THAT WE FEEL VERY MUCH COMFORTABLE IN CONTINUING TO INVEST FOR THE CITIZENS OF PORT APPA AND COULD CONTINUE TO GROW OUR ECONOMY.
AS FAR AS THAT IS CONCERNED AS THE, UH, OUR ACTING FINANCIAL DIRECTOR WILL INDICATE, WE HAVE MADE SOME SUCCESS IN THE COLLECTION OF SALES TAX, WHICH HAS IMPROVED CONSIDERABLY.
THERE IS A LITTLE BIT OF SHORTFALL IN TERMS OF THE INDUSTRIAL DISTRICT AGREEMENTS IN TAXES AND PAYMENTS IN NEW YORK TAXES.
BUT EVEN IN SPITE OF THAT, WE CONTINUE TO MAKE PROGRESS WHERE WE ARE CONCERNED IN AREAS OF INFRASTRUCTURE IMPROVEMENT.
UM, ONE OF THE HIGHLIGHTS OF THE BUDGET IS A PROPOSED INCREASE IN COST OF LIVING ALLOWANCE FOR ALL THE EMPLOYEES IN THE CITIES AND FROM OF THE CITY OF PORT ARTHUR.
UM, WE HAVE PROPOSED THAT BECAUSE WHEN YOU LOOK AT THE INFLATION RATE, THE INFLATION RATE IS AT 9.1% FOR THE ENTIRE NATION.
AND SO WE THINK THAT, UM, THE, THE, THE CITIZENS ARE THE BACKBONE OF THE INSTITUTION.
THEY WILL CONTINUE TO FUNCTION AND THEY WILL CONTINUE TO PRODUCE SO THAT WE ALL ARE SUCCESSFUL IN THE CITY OF PORT ARTHUR.
AND SO THIS IS A PROPOSAL, YOU KNOW, WE HAVE LOOKED AT THE REVENUES AND WE THINK THAT WE CAN ACCOMMODATE THOSE AS WELL.
YOU KNOW, WE CONTINUE TO FOCUS AS WELL IN THIS BUDGET ON PROVIDING THE EQUIPMENT THAT STAFF NEEDS TO USE TO CONTINUE TO EFFICIENTLY FUNCTION AND TO CONTINUE TO DELIVER QUALITY CUSTOMER SERVICE, TO ALL OUR CITIZENS, PRIVATE AND THE BUSINESS SECTOR AS WELL.
WE HAVE DONE THAT COGNIZANT OF THE FACT THAT WE KNOW THAT IN ORDER FOR US TO GROW AS A MUNICIPALITY, WE NEED TO CONTINUE TO FOCUS ON THIS BUSINESS INDUSTRY, THE SMALL ENTREPRENEURS AS WELL, TO CONTINUE TO PROVIDE THE ROADS AND ALL THE INFRASTRUCTURE THAT IS NEEDED FOR THEM TO BE SUCCESSFUL AND FOR US TO BE SUCCESSFUL.
AND WITH THAT IN MIND, MAYOR WE, FINANCIAL DIRECTOR WILL PROVIDE YOU WITH AN UPDATE OR AN OUTLINE AS TO WHAT WE DO INTEND TO UNDERTAKE THE, THIS FISCAL YEAR.
I CAN'T SEE THE PAGES LINDSAY.
UM, DO YOU HAVE A LITTLE PRESENTATION HERE FOR YOU, UM, OR GIVING YOU A LITTLE BIT MORE BUDGET HIGHLIGHTS, UH, CONTINUED FROM LAST WEEK? UH, WE DO HAVE AN ESTIMATED TAX RATE REDUCTION OF APPROXIMATELY 3 CENTS, UH, FROM 74 TO 71 CENTS.
UM, WE DON'T HAVE THE FINAL NUMBERS ON THAT.
WE'RE GOING TO DISCUSS THIS FURTHER NEXT WEEK AT THE WORKSHOP, UH, AFTER WE HAVE ALL THE FINAL CALCULATIONS FROM THE COUNTY.
SO WE'LL KNOW EXACTLY WHAT OUR NEW REVENUE RATE AND OUR VOTER APPROVAL RATE WILL BE BY NEXT WEEK.
SO IT MAKES SOME MORE INTELLIGENT DECISIONS ON THE TAX RATE AT THAT TIME.
UH, WE DO HAVE A PROPOSED SALARY INCREASE FOR ALL EMPLOYEES 4% AS MR. BURTON MENTIONED, UH, BUDGETS ARE BALANCED IN ALL MAJOR OPERATING FUNDS WITH THE EXCEPTION OF TRANSFERS FOR CAPITAL IMPROVEMENTS AND EQUIPMENT, SOME ADJUSTMENTS TO CURRENT RATE STRUCTURE FOR WATER AND SEWER.
UH, WE'LL GIVE YOU MORE DETAILS ON THAT AFTER THIS PRESENTATION, WE'LL HAVE ANOTHER ONE ON WATER, SO YOU CAN, WE'LL GET MORE DETAILS THEN.
UM, OVERALL, UM, OPERATING DEPARTMENTS ARE BUDGETED ON STATUS QUO WITH LIMITED ADDITIONS.
NEXT PAGE LINDSEY, UH, CHANGES DO INCLUDE, UM, INCREASE OF EIGHT AUTHORIZED POSITIONS, FIVE FOR THE GENERAL FUND TWO FOR WATER UTILITIES AND ONE FOR PLEASURE ISLAND.
ACTUALLY THE GENERAL FUND HAS FOUR NEW POSITIONS AND ONE WAS PREVIOUSLY GRANT FUNDED.
SO WE WERE GOING TO ROLL IT INTO THE GENERAL FUND THIS YEAR, UM, EQUIPMENT PURCHASES OF 5.2 MILLION, UH, THAT EXCLUDES LEASES.
UH, BUT WE DO HAVE, UH, 37 PROPOSED 37 VEHICLES, UM, WITH CAPITAL LEASES THROUGH THE ENTERPRISE PROGRAM ABOUT 250,000, UH, NEW TECHNOLOGY PURCHASES OF 246,000.
AND THERE IS A PROJECTED INCREASE FOR, UH, HEALTH INSURANCE BUILT IN OF ABOUT NINE AND A HALF PERCENT.
NEXT PAGE LINDSEY CAPITAL IMPROVEMENTS.
UM, AS MR.
UH, THIS DOES INCLUDE, UH, IN YOUR
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BUDGET, A FIVE-YEAR CAPITAL PLAN, WHICH ASSIST IN, UH, LONG-TERM FINANCIAL PLANNING, 10.7 MILLION, UH, FOR STREET RECONSTRUCTION BRIDGE AND SIDEWALK REHAB 9.2 MILLION FACILITY IMPROVEMENTS 6.7 MILLION, UH, WATER UTILITY INFRASTRUCTURE IMPROVEMENTS, 4.9 MILLION SOLID WASTE, LANDFILL IMPROVEMENTS AND EQUIPMENT 2.1 MILLION IMPROVEMENTS TO PLEASURE ISLAND.AND THESE ARE ALL PRIMARILY FUNDED WITH OPERATIONS AND NEW BOND ISSUES.
NEXT PAGE LINDSEY HERE, YOU CAN SEE THE FUNDING BREAKDOWN.
UM, THE PRIMARY FUNDING RIGHT NOW FROM OPERATIONS GENERAL FUND, UH, WOULD FUND 6.1 MILLION WATER UTILITY SPUN WOULD FUND 2.2 MILLION WITH A BOND ISSUE OF 24.1 MILLION BREAK DOWN TO 15.2 MILLION WOULD BE TAX SUPPORTED.
THAT'S THE GENERAL FUNDED PORTION.
AND THEN 8.9 MILLION WOULD BE REVENUE SUPPORTED THAT BREAKS OUT TO 4.5 MILLION FOR WATER 2.4 MILLION FOR SOLID WASTE EQUIPMENT AND A PLEASURE ISLAND IMPROVEMENTS FOR THE REMAINDER.
WE WILL DISCUSS, UH, THESE CAPITAL PROJECTS IN MORE DETAIL AT A FUTURE WORKSHOP.
UH, HERE YOU CAN SEE A MORE OPTIMIZATION OF THE EIGHT NEW POSITIONS, UH, THE GENERAL FUND, UH, BEING FIVE, UH, ONE NETWORK INFRASTRUCTURE SPECIALIST, OR, UH, THE IT DEPARTMENT MECHANIC FOR EQUIPMENT SERVICES.
I KNEW DEPUTY CHIEF OF OPERATIONS AND FIRE SIGN TECHNICIAN FOR PUBLIC WORKS.
AND THEN THE POSITION THAT WAS PREVIOUSLY GRANT FUNDED WAS AT THE HEALTH DEPARTMENT OF PUBLIC HEALTH EMERGENCY PREPAREDNESS COORDINATOR.
THE WATER FUND, UH, WOULD BE ADDING TWO POSITIONS, CUSTOMER SERVICE REPRESENTATIVE, AND A MAINTENANCE WORKER PLEASURE ISLAND, UH, WOULD BE, UH, ADDING AN EQUIPMENT OPERATOR NEXT POSITION.
NEXT PAGE LINDSEY WANTED TO TOUCH ON FUND BALANCE JUST A LITTLE BIT FOR THE GENERAL FUND.
UH, FUND BALANCE IS AN ACCUMULATION OF REVENUES MINUS EXPENDITURES.
THE BEGINNING FUND BALANCE REPRESENTS AVAILABLE SPENDABLE RESOURCES IN THE FUND, AND IT IS ESSENTIAL THAT GOVERNMENTS MAINTAIN ADEQUATE LEVELS OF FUND BALANCE TO MITIGATE REVENUE SHORTFALLS AND AN ANTICIPATED EXPENDITURES, BASICALLY REVENUES MINUS EXPENDITURES.
PLUS BEGINNING FUND BALANCE WILL EQUALLY OR ENDING FUND BALANCE.
THOSE SPEND BALANCES ARE CARRIED FORWARD EVERY YEAR.
UH, NEXT PAGE, LINDSEY, THIS BREAKS DOWN OUR POLICY.
NOW OUR FUND BALANCE POLICY FOR PORT ARTHUR IS, UH, FOLLOWS THE RECOMMENDED GUIDANCE OF GFR AWAY, AND IT IS 60 DAYS OF OPERATING EXPENDITURES PLUS ONE AND A HALF MILLION.
SO BASICALLY IT ALLOWS, WE PUT INTO SAVINGS ENOUGH FOR THE CITY TO OPERATE FOR 60 DAYS.
SHOULD THERE BE SOME SORT OF PROBLEM, EXCUSE ME.
UM, HERE YOU CAN SEE THE GENERAL FUND BALANCE THAT WE'RE PROPOSING FOR THE GENERAL FUND IS 22.2 MILLION.
THAT EQUALS 111 DAYS OF OPERATING EXPENDITURES, UH, THAT IS IN EXCESS OF 8.7 MILLION OR 43 DAYS ABOVE THE REQUIREMENT.
NEXT PAGE LINDSEY, UH, WE'LL TOUCH A LITTLE BIT HERE ON ESTIMATED RESULTS FOR THIS FISCAL YEAR END 22, UH, FOR 22 BUDGETS ARE BALANCED, UH, IN ALL MAJOR, MAJOR OPERATING FUNDS WITH THE EXCEPTION OF TRANSFERS FOR CAPITAL IMPROVEMENTS AND EQUIPMENT.
AND THAT IS ALSO THE POLICY THAT WE WILL STRIVE TO BALANCE ALL BUDGETS EXCEPT FOR TRANSFERS TO CAPITAL.
SO, UH, WE ARE IN COMPLIANCE WITH THAT FOR THIS YEAR AND NEXT YEAR, UH, ESTIMATES REFLECT AN INCREASE IN BALANCES OF 159,000 DUE TO LOWER THAN EXPECTED EXPENSES.
AND, UH, I GUESS TURN TO THE NEXT PAGE.
LENZING JAAK SHOULD BE LOOKING AT THE NEXT PAGE, BECAUSE WHAT I'M DESCRIBING IS THIS CHART HERE BASICALLY, UH, THERE WAS A $7.1 MILLION POSITIVE MOVEMENT FROM THE AMENDED BUDGET TO THE UN ESTIMATE.
AND IF YOU LOOK AT THE RIGHT-HAND SIDE OF THAT PAGE, YOU CAN SEE THE TOTAL OF ALL THE FUNDS YOU HAVE, UH, REVENUES OPERATING EXPENDITURES TRANSFERS, AND THEN YOU HAVE A NET, 159,000.
[00:15:01]
THAT'S A POSITIVE NUMBER WHERE THE BUDGET COMES IN.THE AMENDED BUDGET HAD A NEGATIVE $7 MILLION.
SO THAT'S WHERE THE TOTAL $7.1 MILLION POSITIVE MOVEMENT COMES IN.
NOW, IF YOU LOOK OVER TO THE LEFT-HAND SIDE OF THE PAGE, IT JUST, IT SHOWS THE GENERAL FUND.
SO GENERAL FUND REVENUES OF 80.8 MILLION OPERATING EXPENDITURES.
AND THESE ARE YEAR-END ESTIMATES OF 69.4 MILLION TRANSFERS OF 12.6 GIVES YOU A NEGATIVE 1.3 MILLION.
HOWEVER, THAT IS A POSITIVE MOVEMENT OF ABOUT A 7.1 MILLIONS, NO 7 MILLION FROM THE BEGINNING, UH, FROM THE AMENDED BUDGET, IT'S AN 8 MILLION ACTUALLY IT'S AN $8.8 MILLION POSITIVE MOVEMENT AS YOU GOT SEVEN PLUS ONE.
SO IT'S AN $8 MILLION POSITIVE MOVEMENT FROM THE AMENDED BUDGET TO THE YEAR END ESTIMATE.
WHEN YOU MAKE THAT COMPARISON, UH, GO AHEAD AND GO TO THE NEXT PAGE, LINDSEY, UM, THIS DETAILS, THE GENERAL FUND EVEN FURTHER FOR THE YEAR END ESTIMATE HERE, YOU CAN SEE OUR ORIGINAL BUDGET, WHICH WE ESTIMATED THE ENDING FUND BALANCE WAS GOING TO BE 20.6 MILLION.
THEN THE AMENDED BUDGET, WE INCREASED THE OPERATING EXPENDITURES SLIGHTLY, BUT WE ALSO INCREASED THE BEGINNING FUND BALANCE.
NOW THE BEGINNING FUND BALANCES WILL CHANGE DURING THE YEAR BECAUSE THE NUMBERS ARE NOT FINAL WHEN WE DO THE BUDGET.
SO LATER IN THE YEAR, WE'LL GET OUR FINAL NUMBERS FOR THE PREVIOUS YEAR.
AND WE'LL UPDATE THAT IN OUR BUDGET AT YEAR END.
SO WE INCLUDE THOSE IN OUR YEAR END ESTIMATE.
SO WE WENT FROM 20.6 ENDING IN THE ORIGINAL TO 23.8 MILLION ENDING FUND BALANCE FOR THE AMENDED.
BUT IT, THEN, IF YOU LOOK AT THE NEXT COLUMN, WE END UP WITH A 29.6 ESTIMATED AND THAT'S BECAUSE THE REVENUES WERE QUITE A BIT HIGHER THAN THE BUDGET AND THE EXPENDITURES WERE QUITE A BIT LOWER.
SO THAT IS WHERE YOU GET THE, THE MOVEMENT FROM 23.8 TO 29.6.
SO THAT'S A $5.8 MILLION POSITIVE MOVEMENT IN YOUR FUND BALANCE.
AND IF YOU LOOK AT COMPARED TO THE ORIGINAL BUDGET TO THE ESTIMATE, THAT'S A $9.1 MILLION POSITIVE MOVEMENT.
SO WE DID MAKE PROGRESS DURING THE YEAR, UH, NEXT PAGE, LINDSEY.
I'M HEARING YOU, I'M SEEING IT.
AND I'M LOOKING AT SOMETHING DIFFERENT.
SUCH SAYING THOSE NUMBERS, IF YOU DON'T MIND BECAUSE SAID NEXT PAGE WE NOT, OH, YOU ALL RIGHT? YEAH.
I'M FLIPPING THROUGH THIS AND MAKING ME NERVOUS.
I'M TALKING ABOUT EVERYBODY'S ON DIFFERENT PAINS.
THAT'S IN YOUR, YOUR IT'S IN YOUR PAGE.
WHAT IS ON PAGE 12? IS IT THE GENERAL FUND SUMMER? SURE.
ELVIS THE GENERAL FUND SUMMARY.
WELL, I DON'T KNOW WHY IT WOULDN'T BE.
HE'S, YOU KNOW, SHE WAS SAYING THE SCREEN STANDS UP AND EVERYBODY WE'RE TALKING ABOUT PAGE 11 AND HE MUST'VE HAD IT ON PAGE 12.
DO YOU HAVE, YOU'D HAVE A PAGE 11 IN YOUR BOOK.
HE DOESN'T HAVE IN THE POWERPOINT.
APPARENTLY WHAT I WAS DISCUSSING WAS PAGE 11, PAGE 11 IS WHAT I WAS DISCUSSING.
I WILL SAY PAGE NUMBERS FROM NOW ON.
YOU'RE NOT MISSING ANY OTHER BAGELS.
WE WERE MISSING A PAGE IN THE PRESENTATION.
YOU DO HAVE IT IN YOUR HANDWRITTEN VERSION THOUGH.
IT IS IN YOUR, YOUR WRITTEN DOCUMENTS THOUGH.
SO ARE WE GOOD WITH PAGE 11? DO WE, DO WE UNDERSTAND THAT? OKAY, NOW WE'RE ON PAGE 12, LINDSEY PAGE 12, EVERYBODY ON PAGE 12.
THIS IS OUR, UH, WE MOVE ON WITH OUR GENERAL FUND SUMMARY TO INCLUDE THE 23 PROPOSED COLUMN ON THE RIGHT THERE.
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FOR 23, FOR THE GENERAL FUND, WE HAVE PROPOSED 76.7 MILLION IN REVENUES, 73.3 MILLION IN OPERATING EXPENDITURES, 10.9 MILLION IN TRANSFERS, UH, LEAVING A, UM, NEGATIVE SEVEN, 7.4 MILLION.NOW WE HAVE ALSO PROPOSED 8.7 MILLION IN TRANSFERS TO CAPITAL AND EQUIPMENT.
SO THAT'S, THAT'S IN ACCORDANCE WITH OUR POLICIES.
LIKE I WAS DISCUSSING EARLIER THAT, UM, THAT WE ONLY EXCEED EXPENDITURES CAN ONLY EXCEED REVENUES TO THE EXTENT OF CAPITAL.
SO NOW LET ME TURN YOUR MIC ON I'M ON PAGE 12.
MENTIONED JUST NOW WHAT'S ON PAGE 13, BY SAYING THAT 8.7 $8.7 MILLION TRANSFER.
I JUST WAS MENTIONING THAT AT THIS POINT IN TIME, BECAUSE WHEN I GET TO THE NEXT PAGE, I'M GOING TO GIVE YOU THE DETAILS OF WHAT THE TRANSFERS ARE.
SO I JUST WANTED TO POINT OUT THAT THE 7.4 MILLION UNDER REVENUE UNDER EXPENDITURES IS COMPARED TO THE 8.7, BECAUSE IT'S UNDER THAT IT'S, IT'S OKAY WITH POLICY, AS LONG AS YOUR NET, NEGATIVE NUMBER IS NOT MORE THAN YOUR TRANSFER FOR CAPITAL.
SO IF YOU LOOK AT THE NEXT PAGE ON PAGE 13, LINDSEY, UH, YOU CAN SEE THAT THIS IS A BREAKDOWN OF THE 10.9 MILLION FOR, UH, TRANSFERS OUT AND CAPITAL IMPROVEMENTS AND EQUIPMENT.
WE HAVE 8.7 MILLION GENERAL LIABILITY, 1.875.
UM, THE EDC THAT IS THE EOC RENT THAT YOU APPROVED EARLIER, 130, 2000, 130, 3000.
UH, WE WILL NOT BE NEEDING A TRANSIT OPERATING GRANT NEXT YEAR, ONLY A SMALL, UM, TRANSFER FOR, UH, INCLUDED WITH THE CAPITAL, UH, THE HEALTH GRANT MATCH OF 97,000, THE GOLF COURSE TRANSFER, WHICH IS BY CONTRACT OF 50,000.
AND THEN THE, UM, CONTRIBUTION TO THE TERS, WHICH IS THE AMOUNT THAT THE CITY COLLECTS THAT BELONGS TO THE TERMS WILL BE ABOUT 45,000.
SO THAT'S WHERE THE 10.9 MILLION COMES IN.
THAT'S TRANSFERRED OUT PAGE FROM THE GENERAL FUND INTO THESE OTHER FUNDS IS WHERE IT WILL GO.
UH, PAGE 14, WE HAD THE SUMMARY OF THE WATER FUND, UH, TO INCLUDE THE 23 PROPOSED NUMBERS TO 23 REVENUES OF 36.9 MILLION.
THOSE DO INCLUDE, AS WE MENTIONED BEFORE, RATE INCREASES ARE BUILT IN, UM, THE OPERATING EXPENDITURES OF 25.8 TRANSFERS OUT OF 9.5, UH, LEAVING A POSITIVE, UH, NUMBER OF 1.6, UM, IN REVENUES, UH, OVER EXPENSES.
UH, WE WILL BE DISCUSSING THIS A LITTLE BIT FURTHER IN THE NEXT PRESENTATION.
HE'LL GIVE YOU SOME MORE DETAILS ON, ON THE WATERFRONT.
AND AT THAT TIME, UH, SOLID WASTE FUND IS MY NEXT, UH, SUMMARY PAGE I HAVE FOR YOU THE 23 PROPOSED.
THAT'S WHAT THERE'S A TYPO THERE.
SO IT'S 22, IT SHOULD SAY 23 PROPOSED, UH, IT'S 10.6 MILLION FOR, UH, REVENUES, UH, THAT DOES NOT INCLUDE ANY RATE INCREASE.
WE HAD A RATE INCREASE THIS YEAR IN DECEMBER FOR A RESIDENTIAL AND COMMERCIAL COMMERCIAL GARBAGE.
AND SO THIS JUST REFLECTS A FULL YEAR OF THE INCREASE THAT WE HAD THIS YEAR.
UM, OPERATING EXPENDITURES OF 7.6 MILLION TRANSFERS OF 2.3, LEAVING A POSITIVE NUMBER ABOUT 690,000.
UH, THE NEXT PAGE IS JUST WANTED TO REITERATE THE KEY DATES.
TODAY IS AUGUST 2ND, THE FIRST BUDGET WORKSHOP.
NEXT WEEK, WE WILL PRIMARILY BE DISCUSSING THE TAX RATE, THE ASSESSED VALUE AND THE DEBT.
UM, YOU WILL NEED TO HOLD A PUBLIC, UH, VOTE NEXT WEEK ON A PROPOSED, UH, TAX RATE.
UM, THE NEXT WEEK WE'LL HAVE A WORKSHOP.
NUMBER THREE, UH, WE PLAN TO DISCUSS CAPITAL.
WE CAN ALSO DISCUSS IF Y'ALL HAVE OTHER THINGS THAT YOU WOULD LIKE US TO DISCUSS.
IN ADDITION, WE'LL BE HAPPY TO ADD THOSE ON, UH, AUGUST 19TH,
[00:25:02]
UH, WILL BE THE PUBLIC HEARING ON THE BUDGET AUGUST 22ND.WE'LL HAVE THE PUBLIC HEARING ON THE TAX RATE AND THEN HOPEFULLY ADOPT THE BUDGET, THE TAX ROLL AND THE TAX RATE ON THAT DAY.
SO THAT'S BASICALLY ALL I HAVE, UH, HERE.
UM, YOU HAVE ANY QUESTIONS OR SUGGESTIONS FOR FUTURE, UH, MEETINGS, PLEASE LET US KNOW.
UM, FIRST OF ALL, LET ME APOLOGIZE FOR BEING TORTY, UH, HAD SOME FAMILY ISSUES GOING ON, BUT, UH, THIS IS NOT FROM THE REPORT, BUT FROM THE NOTEBOOK THAT YOU ALL SENT TO US LAST FRIDAY.
UH, AND THERE WAS A COURSE IN IT THAT JUMPED OUT AT ME IMMEDIATELY, UH, ON PAGE EIGHT IN THAT NOTEBOOK, IN THIS, IN THIS NOTEBOOK.
JANE IN THE BUDGET DOCUMENT, RIGHT.
AND THESE ARE SAYS DETAIL EXPENDITURES.
IT'S ABOUT DIVISION SPECIAL PURPOSE.
THESE ARE, UM, SOME SPECIAL PURPOSE ACCOUNTS THAT ARE SET UP UNDER THE CITY MANAGER'S BUDGET, AND THIS IS A DETAIL OF WHAT THEY ARE.
UH, FIRST, FIRST QUESTION IS ON LINE THREE.
UH, THINK THAT'S ACCOUNT M A 0 0 0 3 OTHER OUTSIDE LEGAL SERVICES.
UH, THE ACTUAL FOUR YEAR 19 THROUGH 20 WAS $96,868.
AND THERE'S NO FIGURE FOR THE 2021, UH, FISCAL YEAR.
CAN WE GET SOME INFORMATION ON THAT PLEASE? YEAH, I'M NOT SURE WHY THERE'S NOTHING THERE FOR 21.
SO YOU LOOK AT THAT, WE'LL LOOK AT THAT AND SEE, YOU KNOW, IF THAT'S AN ERROR FOR 21 OR IF, IF THOSE CHARGES WERE CHARGED SOMEWHERE ELSE.
UH, THE SECOND QUESTION, I'M GONNA MOVE DOWN TO A COUNT DOMAIN 0 0 0 6, THE ARMY REBUILDING.
AND ACTUAL FOUR YEAR 19, 20, 19 AND 20 WAS $50,828 ACTUAL FOR 2021 IT'S 1 MILLION, $229,204.
AND THEN THE AMENDED AMENDED BUDGET FOR 2122 IS DOWN TO $66,400.
ARE YOU TALKING ABOUT THE CONTINGENCY LINE? IS THAT WHAT THAT IS? YEAH, IT SAYS M A 0, 0 9 IS CONTINGENCY THE NUMBERS YOU WERE READING OFF, WENT ALONG WITH THAT, RIGHT.
AND I'M TRYING TO REMEMBER WHAT IN 21, CAUSE THAT TO BE SUCH AS, YEAH, I THINK WE NEED SOME, UH, SOME DETAIL, UM, CAUSE THAT'S, UH, THAT'S ABOUT A THOUSAND PERCENT INCREASE.
BUT IT WAS FOR SOMETHING SPECIAL.
THE, UH, THE CONTINGENCY LINE IS IF SOMETHING COMES UP UNEXPECTED, YOU KNOW, AND I BELIEVE WE DID A BUDGET AMENDMENT TO ADD THAT AND I'LL HAVE TO GO BACK, I'LL HAVE TO GO BACK TO 21 AND LOOK AND SEE EXACTLY WHAT IT WAS BECAUSE I DON'T RECALL, BUT IT WAS SOMETHING SPECIAL THAT WAS APPROVED BY COUNCIL AND THAT'S WHERE WE ADDED IT.
WE HAD TO AMEND THE BUDGET TO DO THAT.
SO YOU'LL GIVE ME SOME DETAIL OR GET US SOME DETAIL ON THAT.
AND I WANT TO GO BACK UP TO THAT.
IT SHOULD HAVE BEEN THE ARMORY BUILDING AND I ACTUALLY READ THE WRONG NUMBER THERE, BUT THERE ISN'T ACTUAL IN 20 21, 200 $17,455 WHEN THE ACTUAL AND 2019 AND 20 WAS $20,979.
AND WE'RE BUDGETING FOR 21, 22, $20,000 IN THE PROPOSED FOR 22, 23 IS ONLY $4,200.
WE'LL GET THE DETAIL FOR THAT ONE AS WELL.
[00:30:01]
BELIEVE THAT THE, FOR THE ARMORY BUILDING, THERE WERE SOME REPAIRS THAT WERE DONE IN 21 THAT WE HAD TO PAY FOR THAT WERE, YOU KNOW, APPROVED BY COUNCIL.UH, I BELIEVE THAT'S WHY THAT NUMBER WAS SO HIGH IN THAT YEAR AND THE NEXT YEARS HAD TO DO WITH, UH, REAL ESTATE.
I THINK WHAT WE'RE LEFT WITH IS JUST THE REAL ESTATE.
I THINK THERE MAY HAVE BEEN SOME REPAIRS ALSO THIS PAST YEAR, AND THEN, UM, IT'S A MONTHLY, REAL ESTATE FEE THAT WE PAY.
IT'S A MINIMAL AMOUNT THAT WE PAY TO THE, THE REALTOR TO MANAGE THAT.
UM, BUT YOU, YOU YOU'LL GET US THE DETAIL THAT I WILL GET THE FULL DETAILS AND IT'S FOR ALL THE, ALL THOSE THREE LINES.
UM, MS. DANIEL, YOU TALKED ABOUT THE ON PAGE NUMBER EIGHT, YOU TALKED ABOUT THE FUND BALANCE POLICY AND HOW, UM, WE'RE REQUIRED TO HAVE 60 DAYS OF OPERATING EXPENDITURES.
UM, GENERAL FUND ENDING IN, UH, PHYSICALLY YEAR 2023 IS $22.2 MILLION, 107 DAYS OF OPERATING CAPITAL.
AND THEN YOU WERE, AND THEN YOU CAME DOWN AND TALKED ABOUT ON PAGE NUMBER EIGHT, THE EXCESS OF $8.7 MILLION OR 43 DAYS OVER WHAT IS, WHAT IS NORMAL.
THEN WE CAME TO PAGE NUMBER 13 AND HE WAS SHARING WITH US THE TRANSFER OF MONEY COMING, UH, TO OTHER FARMS FROM THE GENERAL COMPANY.
AND SO YOU CATALOG ALL OF THOSE AND SAID THAT THAT CAME TO A TOTAL OF $10.9 MILLION OR, UM, ROUNDED OFF 11.
SO THAT 11 WOULD BE MINUS THE 22.
THAT'S INCLUDED, THAT'S INCLUDED.
IF YOU LOOK ON PAGE 12, YOU CAN SEE THAT, UH, YOU GOT 76.7 MILLION MINUS 73.3 MINUS 10.9 GIVES YOU THAT NEGATIVE 7.4, BUT YOU GOT TO BEGINNING BALANCE THAT YOU ADD TO THAT, UH, 29.6 TO COME UP WITH THE ENDING 22.2 MILLION, WHICH MATCHES WHAT I SHOWED YOU ON PAGE EIGHT.
SO THE 10 MILLION IS INCLUDED IN THAT.
ANY OTHER COURSES BEFORE, AND THERE IS THAT 76 MILLION, THE PROPOSED, IS THAT INCLUSIVE OF THE INCREASE OF A PROJECTED INCREASE IN WATER? NO, SIR.
WATER'S NOT INCLUDED IN THE GENERAL FUND.
THIS IS ONLY THE GENERAL FUND SUMMARY WATER IN THE, IN THE PROJECTED REVENUE FOR THE WATER FUND PAGE.
THE WATER FUND IS REFLECTED ON PAGE 14 IS CARRIED COMPLETELY SEPARATE FROM THE GENERAL FUND BECAUSE IT'S AN ENTERPRISE FUND AND THE GENERAL FUND IS TAX SUPPORTED.
SO IT WORKS A LITTLE BIT DIFFERENTLY.
SO THAT $36 MILLION IS PROJECTED INCREASE.
THAT DOES INCLUDE AN INCREASE.
AND WITHOUT THAT INCREASE, WITHOUT THAT INCREASE WITH TOP WE'RE BACK DOWN TO THE 31 9 OR SOMEWHERE IN THAT BALLPARK.
HANEY CAN PROBABLY GO THROUGH THAT A LITTLE MORE IN HIS PRESENTATION.
UM, YOU HAVE THE DOCUMENTS WITH YOU AS THE FINANCIAL DIRECTOR INDICATED WE WILL HAVE TWO MORE OPPORTUNITIES AGAIN.
SO WHATEVER QUESTIONS YOU HAVE, EVEN PRIOR TO THE MEETING, LIKE COUNSELOR, MAX OF, YOU KNOW, DON'T BE SHY IN LETTING US KNOW SO THAT WE CAN PROVIDE EXPLANATION.
[00:35:11]
NOPE.SEE IF YOUR MIC IS ON, IS THIS BETTER? YEAH.
MR. MATTHEWS ASSISTED ME IN PREPARING THIS PRESENTATION AND HE WAS SUPPOSED TO BE PART OF IT TODAY TO GIVE YOU SOME OF THIS INFORMATION.
UNFORTUNATELY, HE GOT ILL AND COULDN'T BE HERE TODAY.
AND SO I DON'T ALSO GET CAUGHT IN THE MOMENT.
I WANT TO THANK EVERYBODY WHO HELPED WITH THIS PRESENTATION, SUCH AS THIS I'M BRIAN AND JESS AND GALVIN AND ALL THE TEAM THAT YOU TELL.
WHAT WE'RE GOING TO TALK ABOUT TODAY IS A UPDATE ON ALL THE PROJECTS THAT WE HAVE ONGOING AND UPDATE ON THE BUDGET, A SHORT PRESENTATION ON THE RATE HISTORY AND WHERE WE ARE TODAY.
A BRIEF DESCRIPTION OF THE CAPITAL PROGRAM THAT WE HOLD IN THIS COMING BUDGET HERE, AND TALK A LITTLE BIT ABOUT RATE INCREASES AND WHAT IS THE IMPACT ON OUR CITIZENS? AND ON OUR REVENUE PROJECTS, THERE IS NO ITEM TO VOTE ON ANY RATE INCREASES TODAY.
THIS IS JUST FOR INFORMATIONAL PURPOSES ONLY.
SO TOWARDS THE END OF THIS PRESENTATION, WE CAN GET SOME FEEDBACK FROM THE MAYOR AND COUNCIL.
SO WE KNOW WHAT DIRECTION WE SHOULD TAKE.
AS YOU ALL KNOW, THE UTILITIES DEPARTMENT, ORGANIZATIONAL CHART INCLUDES SEVERAL DIVISIONS.
WE HAVE THE WATER TREATMENT PLANT, THE WASTEWATER TREATMENT PLANTS, THE CONVEYANCE DIVISION, CUSTOMER SERVICE AND BILLING, UH, DISTRIBUTION DIVISION, AND, UH, MANAGEMENT, SOME OF THE ONGOING AND COMPLETED PROJECTS THAT YOU HAD APPROVED.
AND WE HAVE BEEN WORKING ON IN THE LAST FEW YEARS.
THE FIRST PROJECT IS THE WATER LINE GOING TO THE LANDFILL THAT WAS INITIATED BY SEMPRA'S PROJECT.
THE DESIGN IS COMPLETED, ALL THE PERMITS WE NEED FROM TEXAS AND FROM THE ARMY CORPS OF ENGINEERS AND DD SEVEN HAVE BEEN ACQUIRED.
THIS PROJECT IS READY TO GO OUT FOR BIDS, BUT WE'RE WAITING TO SEE WHAT SEMPRA IS GOING TO DO BEFORE WE ACTUALLY, UH, ENGAGE IN SPENDING THIS KIND OF MONEY ON THIS WATERLINE.
CAUSE IT WAS PURELY DESIGNED FOR THEIR PURPOSE TO BRING IN THE DIRT, TO US, FOR THE LANDFILL AND THE ABILITY TO CLEAN THE TRUCKS THAT ARE GOING TO BE BRINGING THE DIRT TO PREVENT FROM GETTING TEXTS, DOTS HIGHWAY, ALL MUDDY I ON THE AIRPORT LIFT STATION, WE SPENT ABOUT $775,000 ON THIS LIFT STATION THAT, UH, CAME OUT OF THE LIFT STATIONS BUDGET THAT YOU APPROVED FOR ABOUT 1.7 MILLION.
UH, PRODUCTION HAS BEEN COMPLETED.
THE ONLY PIECE OF THIS PUZZLE IS FOR ENERGY TO COME HOOK UP POWER TO THIS LIFT STATION.
AND IT'S SUPPOSED TO TAKE PLACE THIS WEEK.
THE LAKESIDE GRAVITY SEWER LINE WAS DESIGNED BY THE ENGINEER AND THE BIDDING DOCUMENTS ARE WITH PURCHASING TO ADVERTISE THIS PROJECT ABOUT FOUR BITS.
THE EL VISTA FORCE MAIN, THE DESIGN IS COMPLETE.
WE ARE WAITING ON, UH, TEX DOTS, UH, SORRY OF THE RAILROAD, UH, APPROVAL TO BE CROSSING THEIR TRACKS.
AND ONCE THAT APPROVAL IS QUIET, WE WILL PUT THIS PROJECT OUT FOR BIDS AS WELL.
HOW IT 365 FORCED MAIN PHASE ONE HAS BEEN COMPLETED.
YOU AWARDED THE ENGINEERING CONTRACT IN JUNE OF 2022.
THE DESIGN SHOULD BE COMPLETED BY FEBRUARY, 2023.
AND THEN THIS PROJECT WILL ALSO GO OUT FOR BID 46 3 LIFT STATION PHASE ONE HAS BEEN COMPLETED.
SABINE PASS BY BURSTING CONTRACT.
ONE CONSTRUCTION IS COMPLETED.
WE ARE WAITING ON A PUNCH LIST THAT THE CONTRACTOR NEEDS TO FINISH.
BEFORE WE CLOSE THIS JOB, I CAN PROUDLY SAY THIS WAS DESIGNED IN-HOUSE BY CITY STAFF AND MY COMPANY COMBINED PHASE TWO OF SABINE PASS HAS BEEN ALREADY AWARDED BY THE COUNCIL FOR THE CONTRACTOR TO START CALLING PRODUCTION THIS MONTH.
A CITYWIDE BY BURSTING CONTRACT THAT
[00:40:01]
DESIGN ALSO HAS BEEN COMPLETED.THIS ONE IS ALSO KNOWN BY CITY STAFF AND GOLDEN TRIANGLE CONSULTING ENGINEERS.
AND THE CONTRACT DOCUMENTS WILL BE GOING THROUGH PURCHASING THIS WEEK FOR THEM TO ADVERTISE THIS JOB.
WE HAD THE LITTLE BIT OF DELAY BECAUSE THE ORIGINAL CONTRACT WE PUT TOGETHER INCLUDED MORE PIPE TO REPLACE THAN THE MONEY WE HAD ALLOCATED TO IT.
SO WE'RE HAVING TO REDUCE THAT QUANTITY AND CHANGE A FEW OF THESE DRAWINGS.
AS YOU KNOW, THE MAIN WASTEWATER TREATMENT PLANTS, UH, DESIGN HAS BEEN APPROVED BY THE TEXAS AFFORDED DEVELOPMENT BOARD.
THE PROJECT WAS BID, UH, IT WAS AWARDED AND CONSTRUCTION STARTED JUNE OF THIS YEAR.
THIS IS A $73 MILLION PROJECT AT THIS TIME.
THAT'S GOING TO BRING THE ELABORATE DATED WASTEWATER TREATMENT PLAN TO THE 22ND CENTURY.
A FEW PICTURES OF THESE PROJECTS THAT, UH, WE ARE DISCUSSING SUCH AS PIONEER PARK LIFT STATION.
AGAIN, I'VE FLIPPED THROUGH THESE QUICKLY SABINE PASS BY BURSTING CONTRACT ONE WHERE NEW UPLIVE IS PUT IN THE GROUND WITH, UH, SOME NEW MAN HOLDING SOMEBODY HEAVY DATED MANHOLES.
UH, YOU CAN SEE ON THE NEXT SLIDE THAT WE'RE REPLACING ALSO SERVICE LINES, NOT ONLY THE MAIN.
SO THE SERVICE LINE FROM OUR PIPE TO THE PROPERTY LINE WILL ALSO BE INSTALLED AS NEW PIPE CONNECTING TO THE CLIENT'S PART OF THE SOURCE SERVICE LINE.
ONE OF THE PROJECTS WE'RE VERY PROUD OF IS THE SABINE PASS WASTEWATER TREATMENT PLANT, UH, PRIMARY CLARIFIER.
THIS IS A PROJECT THAT HAS BEEN WORKED ON FOR MANY YEARS, BUT NEVER BEEN ACCOMPLISHED THROUGH THE ABILITIES OF THE NEW STAFF THAT WERE RECENTLY HIRED LIKE CALVIN AND JESS.
THEY BOTH REGISTERED PROFESSIONAL ENGINEERS.
WE WERE ABLE TO DO SOME OF THAT ENGINEERING IN-HOUSE THROUGH THE ASSISTANCE OF MY COMPANY.
UH, YOU ALL ALREADY, UH, AWARDED THE PURCHASE OF THIS CLARIFIER A FEW WEEKS AGO, IT'S BEING FABRICATED AND WE ALREADY WENT IN THERE CLEANED THAT CLARIFIER.
LIKE YOU SEE THE BEFORE AND AFTER PICTURES BEFORE PICTURES, ALL SLUGS.
WHAT DO YOU FEED THE SLUDGE, LETTING FIVE, PREVENTING IT FROM OPERATING PROPERLY? SAME THING FOR THAT SABINE FAST WASTEWATER TREATMENT PLANT AND THE AERATION BASIN WAS FULL OF SLUDGE.
IT HAD TO BE CLEANED UP AND SOME OF THE PIPING NETWORKS THAT TO BE REPLACED AGAIN IN HOUSE DESIGN, AS WELL AS MANAGEMENT OF THE REHABILITATION AND CONSTRUCTION.
AND SIMILARLY FOR THE CHLORINE CONTACT CHAMBER AT THE SABINE PASS, THESE COMPONENTS ARE VERY, VERY IMPORTANT TO UTILITIES AND I CONSIDER THEM A HUGE ACCOMPLISHMENT BECAUSE WE HAD A $9 MILLION BUDGET TO ACTUALLY BUILD A NEW PLANT AT SABINE PASS.
AND WE ARE ABLE TO GO IN THERE, DO THE NECESSARY CHANGES FOR THE EXISTING PLANT AND BRING IT BACK TO NORMAL OPERATION CAPABILITIES FOR UNDER 2 MILLION WHILE WE ARE DOING MOST OF THIS DESIGN AND CONSTRUCTION MANAGEMENT IN HOUSE.
SO BETWEEN WHAT'S HAPPENED HERE, WHAT'S GOING TO HAPPEN IN THE NEXT FEW MONTHS IN SABINE PATHS AND THE SEWER REHAB CONTRACTS THAT WE ARE DONE, WE CAN PROUDLY ANNOUNCED FOR THE FIRST TIME IN A LONG, LONG TIME AT 12 INCH RAIN THAT FLOODED THE CITY OF PORT.
ARTHUR DID NOT OVERFLOW THAT PLANT A FEW WEEKS AGO, THIS PLANT FUNCTION, UH, WITHIN HIS PARAMETERS, ALTHOUGH WE'RE STILL MISSING THE CLARIFIER, IT MET PERMIT LIMITS ON ALL THE, UH, THINGS THAT DEPARTMENTS REQUIRE US TO MEASURE AND KEEP UP WITH.
AND HE'S DONE THAT THROUGH OTHER RAINS AS WELL SINCE THEN.
SO I'M VERY PROUD OF WHAT WE'RE DOING WITH THIS PLANT.
ONE OF OUR, UH, MOST OBVIOUS IMAGE IN, UH, UTILITIES IS OUR ELEVATED STORAGE TANKS.
ALL OUR PIPING NETWORK IS USUALLY UNDERGROUND.
YOU DON'T SEE MOST OF IT, BUT THESE THINGS ARE THE ASSEMBLE OF WHAT WE WANT OUR CITY TO LOOK LIKE.
SO WE EMBARKED ON REHABILITATING AND PAINTING SOME OF THESE PLANS.
UH, THE FIRST ONE ON THE LIST WAS THE WEST PORT ARTHUR BANK THAT WAS ALREADY COMPLETED PICTURES.
YOU SEE FROM THE MAIN WASTEWATER TREATMENT PLANTS ARE ALL THE ITEMS THAT WILL BE HEAVILY DATED AND SLASH OR REPLACED IN THE NEXT 40 YEARS FROM THIS PROJECT, THAT'S ONGOING A MAJOR, MAJOR REHABILITATION, WHETHER IT'S A BAR SCREENS, SCREW BOMBS, CLARIFIERS, YOU NAME IT, IT'S GOING TO GET EITHER REPLACED
[00:45:01]
OR FIXED OR IT'S LOOKING BRAND NEW.THE NEXT THING I WANT TO GO OVER IS THE BUDGET UPDATE AND TALK ABOUT REVENUES VERSUS EXPENDITURES.
AND TO START, I WOULD LIKE FIRST TALK ABOUT SHANIA.
AS YOU ALL KNOW, SHANIA IS ONE OF OUR MOST IMPORTANT CLIENTS, THE $31.9 MILLION PROJECTED REVENUE FOR THIS YEAR, 6.4 MILLION OF IT COMES FROM SHANIA.
SO THEY ARE ONE OF OUR MAJOR CLIENTS THAT WE HIGHLY DEPEND ON.
AND WE TRY TO ALWAYS PROVIDE UNINTERRUPTED SERVICES TO BECAUSE SHUTTING THEM DOWN IS MILLIONS AND MILLIONS OF DOLLARS PER DAY TO THEM.
IF YOU LOOK AT THEIR, UH, NUMBERS STARTING FROM 18 THROUGH TODAY, THEY ACTUALLY STARTED AT ABOUT 3.9 MILLION.
AND NOW THIS YEAR WE'RE PROJECTING THEM TO BE AT 6.4 MILLION.
AND THESE NUMBERS ARE NOT JUST OUR PROJECTIONS THAT'S AFTER TALKING TO THEM AND REALIZING THAT FLOWS THEY ARE ON TODAY.
WE'LL CONTINUE UNTIL THE END OF THIS YEAR.
SO WE HAVE, IN ADDITION TO THE $1.2 MILLION OF REVENUE THAT WE DID NOT ACCOUNT FOR FROM SHINIER THIS YEAR, WHICH IS GOING TO PLAY A VERY IMPORTANT ROLE IN KEEPING THIS BUDGET BALANCE, THE PROPOSED NUMBER YOU SEE FOR 20 23, 22, 23, THE 7.45 MILLION INCLUDES A RATE INCREASE OF 15% THAT WAS STRUCTURED IN THIS BUDGET.
THAT WE'LL GO INTO MORE DETAILS AND GET YOUR THOUGHTS ON EVERYTHING RELATED TO THAT.
IN A MINUTE, WE TALK ABOUT THE REVENUE VERSUS EXPENDITURES FOR THE DEPARTMENT AS A WHOLE.
AND I PUT THE RATE INCREASE ON THE FIRST ROW.
SO YOU CAN SEE THE IMPACT OF THESE RATE INCREASES ON REVENUE VERSUS EXPENDITURE IN 18 WAS WHEN WE DID THAT FIRST RATE INCREASE SINCE WHATEVER, LIKE 10 YEARS, 12 YEARS AND SINCE 2011.
AND WHAT THAT RATE INCREASE DID FOR THE FIRST TIME SINCE 2011 IS GENERATE ABOUT $750,000 IN THE POSITIVE.
SO EXPENDITURES AND REVENUE, WE STILL HAD 750,000 LEFT FROM THAT ONE RATING BALANCED THAT BUDGET FOR THE FIRST TIME IN A VERY, VERY LONG TIME.
AND, UH, WE WORKED VERY HARD TO MAKE THAT HAPPEN IN 2018 BECAUSE IT WASN'T JUST ABOUT THE RATING.
IT WAS ALSO ABOUT CHANGING THE CULTURE OF HOW WE OPERATE IN FINDING SAVINGS IN CHEMICALS AND OVERTIME AND CUTTING DOWN ON CERTAIN ITEMS OF THE BUDGET.
SO IF YOU WERE DEAD AT THAT TIME AND YOU SAW WHAT WE DID, IT WAS A COMBINATION OF EVERYTHING THAT GOT US TO THAT BALANCED BUDGET.
AND WHEN WE DID THAT IN 18, MY GOAL WHEN I'M RUNNING A UTILITIES DEPARTMENT IS ALWAYS TO HAVE A RATE INCREASE ONCE A YEAR, BECAUSE WHAT THAT DOES, IT KEEPS IT AT A NUMBER THAT'S VERY EASY FOR THE CUSTOMERS TO ACTUALLY ABSORB.
AND IF YOU DO FOUR TO 6% A YEAR, YOU'LL STILL BE ABLE TO OPERATE YOUR, TAKE YOUR INFLATION INTO ACCOUNT.
YOU DO YOUR RATE INCREASES YOUR EMPLOYEES, BUT STILL DON'T HURT THE CITIZENS AS MUCH AND, UH, IN THE POCKET.
BUT UNFORTUNATELY IN 19, THERE WAS NO RATE INCREASE DOWN IN 20.
AND AS YOU CAN SEE, THE FUND GOT $1.4 MILLION IN SPENDING THEN REVENUE IN 19 AND IN THE $21.7 MILLION MORNING SPENDING AND REVENUE COUNCIL APPROVED A RATE INCREASE IN, UH, MARCH OF 2021, WHICH WAS SUPPOSED TO HAPPEN IN JANUARY AS PER THE, UH, PROPOSALS.
SO THAT AGAIN, GOT THE FUND STABILIZED AND GOT US BACK TO THE POSITIVE INSTEAD OF THE NEGATIVE.
IF YOU LOOK AT THIS YEAR'S ESTIMATES, UH, FINANCE IS ESTIMATING 31.9 MILLION IN REVENUE THAT I BELIEVE IS GOING TO BE ACHIEVABLE.
THE NUMBERS I BELIEVE ARE BASED ON THE MAY FINAL, UH, REVENUE NUMBERS, NOT APRIL, LIKE WE, WE, WE DID AND WE'RE PROJECTING OUR EXPENDITURES AT 30.5 MILLION.
SO WE ARE GOING TO BE ABLE TO STAY IN THE POSITIVE THIS YEAR, ALTHOUGH WE DIDN'T DO THE RATE INCREASE THAT WAS SCHEDULED FOR JANUARY.
THE REASON WE'RE ABLE TO DO THAT ARE TWO MAJOR ITEMS, ONE SHENIR, WELL, THAT'S 1.2 PLUS MILLION IN THAT AVENUE.
AND TWO, WE HAVE A ELEVATED STORAGE TANK.
WE WERE SUPPOSED TO, UH, PAINT THIS YEAR THAT WE PUT ON HOLD, BECAUSE WE WANT TO SEE WHERE WE GOING TO BE ON THE NUMBERS BEFORE WE TURN AROUND
[00:50:01]
AND SPEND THAT MONEY BECAUSE IT'S CASH MONEY FOR THE CAPITAL PROGRAM.SO WE'RE TRYING TO SEE IF THAT NUMBER IS GOING TO BE GOING TOWARDS THE TANK OR NOT.
AT THIS TIME, IT DOESN'T LOOK LIKE IT.
SO ALTHOUGH WE'RE GOING TO BE IN THE POSITIVE, IT'S NOT BECAUSE, YOU KNOW, THINGS THAT WERE UNDER OUR CONTROLS BECAUSE MONEY CAME IN, THAT WE WEREN'T EXPECTED AND THEN THINGS IN OUR CONTROL FOR NOT SPENDING AND THE PROJECTIONS AGAIN FOR THE 2022 AND 2023, THE REVENUE INCLUDED THAT 15% INCREASE.
AND YOU SEE A BIG JUMP IN THE EXPENDITURES FROM 30.5 MILLION TO 35.3 MILLION.
SO THERE'S ABOUT FOUR OR $5 MILLION.
LET'S SAY, IN ADDITION TO THE EXPENDITURES, SOME OF THESE EXPENDITURES, WE MIGHT BE ABLE TO CURB.
AND SOME, WE MIGHT NOT BE AN EXAMPLE.
WE ONLY CALCULATED 5.01% INFLATION ON OUR ITEMS, NOT THE 9.1 NATIONAL AVERAGE.
THIS YEAR'S CHEMICALS COST IS $850,000 OVER BUDGET.
INFLATION COST IS GOING TO BE AROUND, UH, $900,000.
THAT'S ADDITIONAL COST ON US, ON MATERIALS, ON REPAIRING EQUIPMENT, ON PARTS, ON ITEMS THAT ARE NOT WITHIN OUR CONTROL.
THERE'S ALSO IN THAT EXPENDITURE AT $1.1 MILLION FOR NEW PROGRAMS. SOME OF WHICH WE CAN NOT, NOT DO.
FOR EXAMPLE, THE EPA HAVE A NEW LEAD AND COPPER RULE WHERE EVERY MUNICIPALITY NEEDS TO GO OUT THERE, SURVEY ALL THE LEAD AND COPPER IN THEIR RESIDENCES DOCUMENTED AND COME UP WITH A PLAN OF HOW WE'RE GOING TO ELIMINATE THE COPPER FROM HOUSES.
SO THERE'S PROGRAMS THAT WE HAVE TO DO, AND WE CANNOT AVOID FROM THESE PROJECTIONS.
PLEASE NOTE THAT A, THAT REVENUE PROJECTIONS ARE BASED ON NUMBERS AS OF APRIL, 2022 AND THE ACTUAL 2021 BUDGET YEAR.
THE EXPENDITURE PROJECTIONS ARE BASED ON EXPENDITURES UP TO APRIL AS WELL.
PROJECTIONS AND REVENUE AND EXPENDITURES CAN CHANGE BASED ON AN UNPRECEDENTED EVENT, SUCH AS A HURRICANE OUT SUMMER, MAJOR EQUIPMENT, INFRASTRUCTURE FAILURES.
WE EXPERIENCED THAT ONTO YOUR LIFE THERE AT FOUR 30 IN THE AFTERNOON, I'M GOING HOME.
WE HAVE A MAJOR DISASTER AT THE WATER TREATMENT PLANT.
ONE OF THE TRANSFORMERS BLEW UP AND WE HAD TO GO AND SPEND $123,000, WHICH IS ON THE AGENDA TODAY FOR APPROVAL OF AN EMERGENCY TO GET THAT PLANT RUNNING BEFORE WE LOST WATER CITYWIDE.
SO THESE ARE THINGS THAT CAN HAPPEN.
WE CAN NOT BUDGET FOR, BUT WE'RE KEEPING OUR FINGERS CROSSED FOR AN EASY SUMMER.
I WANT TO TALK A LITTLE BIT ABOUT THE RATE HISTORY AND WHERE WAS THE CITY WHERE IT IS TODAY AND MAYBE WHAT DIRECTION YOU WANT IT TO TAKE IN THE NEAR FUTURE.
THIS FIRST SLIDE GIVES YOU THE RATES FROM A MINIMUM USAGE FEE AND 30,000 GALLON COST FROM 1992 TO PRESENT THE THINGS I'D LIKE TO BRING TO YOUR ATTENTION IS IN 2011 DASH 2014, WHEN THE MINIMUM USAGE FEE ON WATER WENT FROM $8 AND 80 CENTS TO 43 CENTS.
WHEN IT WENT ON THE SEWER FROM $12 AND 55 CENTS TO ZERO AFTER WHICH IT STARTED GOING BACK UP IN 18, WHEN WE DID OUR FIRST RATE INCREASE THIS LACK OF STRUCTURE AND STABILITY IN THE UTILITIES FUND FOR THOSE YEARS GENERATED $54 MILLION OF DEBT THAT THE UTILITIES FUND OWED TO THE GENERAL FUND, WHICH WAS NOTHING BUT AN IOU NOTE THAT COUNSEL HAD TO GO IN AT ONE TIME AND SAY, I FORGIVE YOU START FRESH.
AND THAT'S WHAT HAPPENED IN 2008.
SO IT'S VERY, VERY IMPORTANT TO HAVE A STRUCTURED AND STABLE ENTERPRISE FUND.
SO WE DON'T GO BACK TO WHERE WE WERE PRIOR TO 2018 AND HAVE TO BORROW MONEY FROM OTHERS.
AND THEN IT'S MONEY THAT CAN NOT BE PAID MOST LIKELY IF THAT'S, IF THE ACCOUNT DOES NOT GET STRUCTURED AND STABILIZED.
IT WENT DOWN FROM $8, 80 CENTS TO 43 CENTS ON THE WATER.
AND THEN IT WENT OUT FROM 1255
[00:55:01]
TO ZERO ON THE SEWER SIDE.AND THAT'S HOW THAT TOOK PLACE FROM 2011 THROUGH 2018, 2018, WHEN WE CAME BACK AND WE DID THE RATE INCREASE, THAT IS CORRECT FOR THE FIRST TIME.
SO YOU SAID IT HAPPENED IN SEVEN YEAR PERIOD AND WHY DID IT HAPPEN THAT WAY? WHETHER IT WAS STRUCTURED AND IT WENT DOWN BASED UPON RATE INCREASE, BECAUSE COUNSEL SHOULD HAVE KNOWN BACK THEN DEAD STEALING.
IT WAS A DEFICIT BACK THEN AS WELL.
RIGHT? AND WE'RE TALKING ABOUT A SEVEN YEAR PERIOD OF $54 MILLION.
AND AT THAT, I MEAN, NO ONE CAN CHANGE THIS RATE WITHOUT THE COUNCIL VOTING ON IT.
SO WHATEVER HAPPENED AT THAT TIME, WHATEVER REASONING THE COUNCIL AT THAT TIME HAD, IT WAS JUSTIFIED TO THEM TO DROP THIS WELL, WHEN YOU MEET, OKAY, WOULDN'T IT BE AN, A RECOMMENDATION FROM STAFF TO COUNCIL TO VOTE ON THOSE THINGS.
IT JUST, WASN'T A COUNCIL TYPE THING TO MAKE A DECISION.
WAS IT THAT COMMENDATIONS FROM STAFF COUNCIL? NOW THAT DOESN'T MEAN THAT THE COUNCIL WILL ALWAYS TAKE THE RECOMMENDATION OF STAFF EITHER.
SO WE ALL UNDERSTAND HOW IT IS.
THAT'S MY JOB HERE TODAY IS TO EXPLAIN TO YOU WHERE WE ARE, WHAT I BELIEVE WE NEED TO DO AND WHAT I'M GOING TO TO DO.
AND THEN IT'S GOING TO BE UP TO YOU ALL TO DECIDE WHICH WAY WE NEED TO GO.
SO AT THAT TIME, THAT DECISION WAS MADE AND IT'S EVIDENT NINE YEARS LATER, IT WAS A VERY WRONG DECISION BECAUSE THE FUND WAS $54 MILLION IN THE HOLE.
AND WHAT THAT DOES, IT DOESN'T OWN THE, PUT YOU IN DEPTH, OKAY.
IT PUTS YOU IN DEBT, BUT IT ALSO LIMITS WHAT CAN YOU DO AS A UTILITY TO BRING THAT SYSTEM UP TO PAR IT LIMITS YOUR ABILITY TO SPEND, BECAUSE IF YOUR BUDGET IS STARTING WITH A MINUS 5 MILLION, YOU'RE NOT GOING TO GO SAY, I NEED TWO MORE MILLION TO GO REPLACE SOME MORE LINES AND I'LL BE JUST MINUS 7 MILLION.
ANYWAY, IT DOESN'T WORK THAT WAY.
CAUSE THAT I OWE YOU NOTE IS COMING OUT OF THE COFFERS THAT THE GENERAL FUND OH, UH, OPERATES AND MANAGES.
THE NEXT SLIDE WILL GIVE YOU AN IDEA.
AND I KNOW, WELL, LET'S JUST FOR JUST A SECOND RIGHT THERE, DR.
I REMEMBER WHEN WE DID THE PRESENTATIONS BACK THEN, OF COURSE THERE WERE PRESENTATIONS KEPT TO COUNCILMAN KEN LAWS, UM, THAT WERE DONE TO SHOW THE TIME THAT WE WERE MISSING, THAT SOAR MONEY.
THAT'S KEN LAW AND THE, UM, THE WATER WHEN THAT WATER RATE DROPPED.
AND THEY GAVE US SOME SUPPORTING DOCUMENTATION THAT WAS PRESENTED TO US IN THAT TIME FRAME TO SHOW WHAT CAUSED US TO BE IN THAT $54 MILLION THAT WE KEPT ADDING TO AND THE, WHAT WE NEVER COULD GET RID OF THAT $54 MILLION DEFICIT THAT WE HAD BACK THEN BECAUSE OF THE DECISION THAT WAS MADE DURING THAT TIMEFRAME AT THE TIME THEY PRESENTED US WITH, I DON'T KNOW IF YOU WERE ON COUNCIL AT THAT TIME, BUT THAT WE WERE PRESENTED WITH, UM, A DETAILED PRESENTATION GOING BACK SIMILAR TO THIS.
WHEN WE RAISED THE RATE, I THINK COUNCILMAN DOUCETTE WAS ON COUNCIL AND WE THOUGHT, YOU KNOW, WHAT, WHAT, UM, WHAT, UH, UH, THIS ADVANTAGE TO THE CURRENT COUNCIL AT THAT TIME TO HAVE TO MAKE A DECISION BASED UPON EIGHT AND IF TO, IN 2011 TO 2014, A DECISION THAT WAS MADE BACK THEN, BUT WE HAD TO DO THE DIRT.
WE FELT LIKE WE HAD BEEN THROWN TO DO THE WORK THAT HAD NOT BEEN DONE TO GET THAT BUDGET, UH, GET THAT $54 MILLION DEFICIT OFF OF THE RECORD BY RAISING RATES.
I THINK AT THAT TIME WE WERE RECOVERING FROM HARVEY AND, UH, CITIZENS WERE EXPERIENCING HARVEY, UH, COMING BACK FROM HARVEY, BUT YET IN THE MIDST OF THAT, WE HAD TO RAISE RATES.
AND SO THEY GAVE US THE PRESENTATION, SHOWED US HOW AND WHAT CAUSED THIS.
UM, THERE WERE DOCUMENTATIONS THE SHOW, UH, HOW IT HAPPENED AND WHO, WHO ALL WAS THERE, IT EXISTS.
AND SO IT WAS WHERE IT'S THAT ZERO NOT CHARGING SEWER FOR THAT MANY YEARS THREW US OFF.
UM, AND I REMEMBER IT LIKE IT WAS YESTERDAY WHEN WE HAD VOTE TO RAISE RATES ON WATER BACK THEN, BUT THEY STILL, WE WERE TOLD EVEN THEN THAT WE'RE GOING TO HAVE TO CONTINUE TO GET TO WHERE WE NEED TO BE RAISE WATER RATES TO COME UP TO PAR.
SO WE WERE TOLD THAT BACK IN 18, THAT THAT WAS JUST THE BEGINNING OF WHAT WE NEEDED TO DO.
WHEN I DID THE STUDY IN 2018, WE PRESENTED TO COUNCIL AT THE TIME SEVERAL OR SEVERAL YEARS OF PROJECTIONS AND WHERE THE RATE INCREASES NEED TO BE TO KEEP THE FUND BASICALLY BALANCED.
AND, UH, AT THE TIME BEFORE THAT, I GUESS THE COUNCIL CHOSE TO BALANCE AN ENTERPRISE
[01:00:01]
FUND FROM THE GENERAL FUND.BUT WHAT I CAN TELL YOU WHAT THAT IS, COULD YOU IMAGINE IF THAT $54 MILLION WENT INTO STREETS AND DRAINAGE? YEAH.
BUT WE WERE ABLE TO GET THAT, UM, SOMEONE, ONE OF OUR ACCOUNTANTS WERE ABLE TO HELP US GET THAT $54 MILLION RESOLVED AND OFF OF OUR BUDGET.
I THINK HE REMEMBERED THAT ACCOUNT.
I JUST, IT, WELL, IT'S, IT'S KINDA MIND BOGGLING TO ME THAT WE DROP THE RATE, THE MINIMUM USAGE RATE IN 2011 OR SO FROM $8 AND 80 CENTS DOWN TO 43 CENTS.
AND WE DROPPED THE MINIMUM SEWER RATE FROM 12055 CENTS TO ZERO.
AND IN, IN, IN MY MIND, HOW COULD WE EVEN CONSIDER THAT WE MIGHT BE ABLE TO BALANCE A BUDGET DROPPING THE RATES THAT WAY FROM THE ENTERPRISE FUND.
AND THEN WE DO IT OVER THE COURSE OF SEVEN YEARS.
WE'LL PUT THAT INTO PERSPECTIVE, COUNCILMAN, UH, ASSUMING WE HAD 17,000 ACCOUNTS AT THAT TIME, YOU'RE LOOKING AT $4.5 MILLION LOST EVERY YEAR, JUST ON MINIMUM USAGE FEE, RIGHT.
THAT'S WHY THAT NUMBER, YOU KNOW, EXPONENTIALLY GREW TO 54 MILLION BECAUSE YOU KNOW, TALKING ABOUT THAT $20 LESS IS NOT THAT BIG OF A NUMBER, BUT WHEN YOU EXPAND IT ON THE ACCOUNTS AND 12 MONTHS A YEAR, YOU'RE LOOKING AT 4.4, EIGHT, 8 MILLION BOOKS.
SO THE QUESTION WOULD BE IN MY MIND, WHO IS RESPONSIBLE FOR LOOKING AT THAT, TO SEE THAT WE'RE LOSING, OR WE WERE LOSING, WAS IT 4.7, 4.5 MILLION A YEAR FOR, FOR THAT MANY YEARS WHO IS RESPONSIBLE FOR LOOKING AT THAT TO BE, TO BE HONEST WITH YOU, THE COUNCIL AS RESPONSIBLE BECAUSE WITHOUT THE COUNCIL APPROVING THE BUDGET EVERY YEAR AND APPROVING THE RATE REDUCTION OR INCREASE, NOTHING CAN CHANGE.
AND THE ONLY REASONING I HEARD ABOUT DOING THAT WAS AT THE TIME PEOPLE SHOULDN'T PAY FOR ANYTHING EXCEPT WHAT THE USE OF THE USE OF VOLUME OF WATER THROUGH THE METER.
SO WHETHER THEY SHOULD PAY FOR THAT, BUT THEY SHOULDN'T PAY FOR THE METER ITSELF.
BUT IF WE GO TO PLACE THESE METERS, ONCE EVERY 10 YEARS FOR ACCURACY AT MEAT IS GOING TO COST US ALMOST AS MUCH AS THE MINIMUM USAGE FEE.
SO MAYOR, SO I JUST HAVE A QUESTION.
COULD YOU, UM, GIVE US, GIVE ME SOMETHING LIKE AN UPDATE IN COURT, PUT THE CORRESPONDING ORDINANCES WITH, UH, GIVE ME SOMETHING LATER WITH THE CORRESPONDING ORDINANCES FOR WHAT YOU'RE SHOWING IS I WOULD LIKE TO LOOK AT THOSE ORDINANCE NUMBERS CAUSE I WAS HERE AT THAT TIME.
I JUST WANTED TO LOOK, CAN YOU GIVE ME THOSE EXACT ORDINANCES WHERE THOSE CHANGES WOULD, MAY GIVE ME THOSE ORDINANCE NUMBERS? RIGHT.
I CERTAINLY THINK THAT THIS LEADS TO A GREAT DISCUSSION OF WHAT AND WHERE WE NEED TO BE GOING WITH THIS.
AND WE NEED TO BE LOOKING AT INCREMENTAL ADJUSTMENTS AS IN RATE INCREASES, AS WE DON'T DO THEM ALL AT ONE TIME, I KNOW THAT YOUR RECOMMENDATIONS ARE WHAT THEY ARE AND CERTAINLY WE HAVE A DECISION TO MAKE, BUT I THINK THIS IS ABSOLUTELY WHAT WE NEED IS RECOMMENDATION FROM STAFF.
THAT MAKES SENSE ON WHAT WE'RE ABSOLUTELY.
THANK YOU FOR WHAT WE NEED TO BE LOOKING AT AS A COUNCIL.
I KNOW WE CAN'T MAKE DECISIONS FOR FUTURE COUNCILS, BUT WE HAVE TO COME UP WITH SOME WAY OF DETERMINING HOW WE WOULD DO THIS SO THAT CITIZENS AREN'T IMPACTED COLLECTIVELY ALL AT ONE TIME WITH ONE.
SO I THINK WE, I THINK I REALLY APPRECIATE YOU SAYING THAT IN THE DISCUSSION THAT WE'VE HAD, UM, I APPRECIATE WHAT COUNCILMAN, UH, COUNCILPERSON MOSES SAID, UH, PREVIOUSLY WHEN SHE TALKED ABOUT THIS AND GAVE US SOME HISTORY ON WHAT HAD HAPPENED.
SO THAT KINDA LEADS TO LOOKING AT SOME INCREMENTAL, UM, CHANGES IN RECOMMENDATIONS FROM STAFF.
WE WERE, I THINK AT THAT TIME COUNCILMEMBER HOMES WE WERE PUT ON AND IT WAS, IT WAS INCREMENTAL.
[01:05:01]
OVERALL CHANGE.WE HAD TO START SOMEWHERE, BUT WE FELT THAT THE HEAVY ON BEGINNING OF THAT COUNT AT THE TIME, UH, THE HEAVINESS OF HAVING TO START THAT BALL TO ROLLING AND AT A TIME THAT WAS NOT REALLY GOOD FOR CITIZENS, ESPECIALLY RECOVERING FROM HURRICANE HARVEY.
AND SO THEN WE HAD TO, IT WAS STEPS.
IT WAS SUPPOSED TO BE GRADUAL.
WHAT, ALONG THE WAY, I THINK THAT WHAT'S HAPPENED IS WE GOT COVID AND WE DIDN'T DO THAT STEP.
AND THEN SOMETHING ELSE HAPPENED.
WE GOT, UH, WE DELAYED ANOTHER STEP BECAUSE WE WERE LOOKING AT THE CITIZENS, NOT TRYING TO PUT THAT BURDEN ON THEM AT THE TIME.
SO WE'VE TRIED, I THINK, AS A COUNCIL, EVEN THIS COUNCIL HAS TRIED BECAUSE WE VOTED TO DELAY A STEP INCREASE.
SO I THINK THAT INCREMENTAL WAS THE PLAN THE ENTIRE TIME TO NOT DO IT ALL AT ONE TIME, BUT TO BASICALLY DO IT OVER A PERIOD OF TIME AND WE'VE NEGLECTED TO DO THAT, I'LL TAKE THE RESPONSIBILITY BASICALLY BECAUSE WE'VE HAD COVID AND NOT WANTING TO PLACE THAT BURDEN ON THE CITIZENS WHO WANTS TO PAY A HIGH WATER BILL WHEN YOU'RE STRUGGLING TO BUY GROCERIES.
AND WE UNDERSTAND THAT, BUT YET THE SERVICES NEED TO BE AT A, AT A CADILLAC SERVICE AND NOT AT A CHEVY.
I'M JUST SAYING THAT I THINK AT 15%, THAT'S SIGNIFICANT.
WE TALK ABOUT ALL THE OPTIONS AND, BUT, UH, I AGREE WITH YOU, COUNCILMAN MOSES, A HUNDRED PERCENT THAT LAND WAS INCREMENTALLY DO THIS BECAUSE WHEN YOU LOOK AT THE MINIMUM USAGE FEE, WE PUT IN 2018 OF $5, THAT IS EVEN LESS THAN WHAT IT WAS IN 2011.
SO THE BLAINE WAS INCREMENTALLY, BUT THINGS CHANGED.
WHATEVER HAPPENED WITH COVID, EVERYTHING ELSE THAT SLOWED THINGS DOWN, BUT THIS COUNCIL HAS BEEN VERY, VERY MINDFUL OF WHAT IMPACT WILL THIS HAVE ON THE CITIZENS? AND I AGREE WITH YOU, I'M ONE OF THOSE CITIZENS, BUT AT ONE POINT OR ANOTHER, WE HAVE TO TAKE ACTION.
SO WE DON'T GO BACK TO THE OLD WAYS.
AND THE FAST, THE WAY THIS BUDGET WAS STRUCTURED FOR THIS YEAR, THERE WAS SUPPOSED TO BE A RATE INCREASE IN JANUARY.
WE ARE IN AUGUST AND WE DIDN'T DO ONE BECAUSE COUNCIL'S DIRECTIVE WAS, WE NEED TO MINIMIZE THE IMPACT ON OUR CITIZENS.
WE JUST HAD TO DO ONE ON THE GARBAGE COLLECTION.
SO WE STOPPED THIS ONE BECAUSE WE SAW THE REVENUE DOING WELL.
SO WE'RE SAYING, SO IT'S NOT A DECISION WE MAKE WHEN YOU APPROVE THIS BUDGET AND WE STICK TO IT.
THAT'S VERY FLUID BASED ON WHAT'S HAPPENING THROUGHOUT THAT YEAR.
WHERE ARE WE? CAN WE DO A SIX INSTEAD OF A 15, CAN WE DO AT TWO INSTEAD OF AN EIGHT? AND WE ALWAYS WANT TO DO THAT A HUNDRED PERCENT, BUT AT THE END OF THE DAY, WE ALSO WANT TO MAKE SURE THINGS ARE GETTING DONE.
SUPERIOR CUSTOMER SERVICE, HAVE THE RESOURCES TO BE PROVIDED.
OTHERWISE WE GO BACK TO THE CITIZENS ARE WHO THEY HAD TO BE THE ONES STRUGGLING AT THE END OF THE DAY BECAUSE THEY'RE THE ONES WILL SUFFER FROM POOR SURFACES.
YOU SAID WE HAVE ABOUT 17,000 ACCOUNTS.
AND IS THAT CURRENTLY RIGHT NOW IN 22? RHONDA IS ABOUT THAT, ABOUT THAT MAN, A LITTLE OVER 17.
AND SO WE BASE IT ON NUMBERS ON THE OVER 17,000.
COULD YOU, SO I DON'T KNOW, WE SPENT SOME TIME ON THIS SLIDE, BUT THE NEXT ONE WOULD, THE GRAPH WOULD SHOW YOU THE LACK OF STRUCTURE AND THE LACK OF, UH, PLANNING.
UH, YOU HAVE ANY ONE OF THESE LINES THAT PRESENT EITHER A MINIMUM USAGE FEE, WATER, MINIMUM USAGE FEE SEWER, OR A THOUSAND GALLON WATER PER THOUSAND GALLON SEWARD.
AND YOU CAN SEE THE UPS AND THE DOWNS AND, AND UPSET.
IF WE TALK A LITTLE BIT ABOUT HOW MUCH IS THE WATER AND WASTEWATER COSTING OUR CITIZENS TODAY, I CHOSE THE NUMBER OF 6,000 AS A MONTHLY USAGE BECAUSE THAT'S AN AVERAGE NUMBER FOR A FAMILY OF THREE.
SO IT'S US IN THE RANGE OF, UH, A REGULAR HOUSEHOLD.
AND IF WE COMPARE THAT 6,000 GALLONS TODAY, UH, TO CITIES THAT ARE OUR SIZE, SUCH AS NEW BROWNFIELDS, CONROE ULAS MANSFIELD TEMPLE, I WOULD WRITE A SIX TO $8 AND 23 CENTS FOR WATER WASTEWATER, INCLUDING MINIMUM USAGE FEE.
IF YOU LOOK AT THE TABLE, WE HAVE REALLY IN THE MIDDLE BETWEEN ALL THESE CITIES THAT ARE OUR SIZE.
SO WE'RE NOT UP HIGH, WE'RE NOT LOW WE'RE IN THE MIDDLE.
AND WHEN WE DO RATE INCREASES, THAT'S ONE OF THE THINGS WE ALWAYS WANT TO LOOK AT.
WE WANT TO TRY TO STAY AVERAGE IN THE MIDDLE AS CLOSE AS TO THE AVERAGE AS WE CAN, BECAUSE THAT TELLS US WE'RE NOT WITH TOO HIGH.
WE'RE NOT TOO LOW, BUT WE STILL HAVE ENOUGH RESOURCES TO GET THE JOB DONE.
[01:10:01]
WE COMPARE OURSELVES TO OUR NEIGHBORING CITIES.WE'RE STILL ALMOST IN THE MIDDLE AS WELL, BUT TAKE INTO ACCOUNT THAT CITIES LIKE NETHERLAND AND GROVES ARE VERY SMALL CITIES AND THEY ARE CAPABLE OF MAINTAINING THAT RATE LIKE THEY DO.
THEY DON'T HAVE THE OLDER INFRASTRUCTURE THAT WE HAVE THAT WE HAVE TO MAINTAIN ON A DAILY BASIS.
SO, BUT OVERALL WE'RE STILL BEATING BEAUMONT, WHICH WE'LL PROBABLY HAVE A RATE INCREASE IN OCTOBER.
SO WE WILL STILL BE A LITTLE BIT LOWER THAN THAT.
THE NEXT WE'RE GOING TO TALK ABOUT THE PROPOSED CAPITAL IMPROVEMENTS PROGRAM.
AND THAT'S THE ONE THAT IS IN THE CURRENT BUDGET THAT IS IN THE 20 23, 20 27 FIVE-YEAR PROJECTION FOR THIS COMING YEAR.
WE'RE PROPOSING TO DO $2 MILLION IN LIFT STATIONS.
WE HAVE A LIMITATION AND I WILL SHOW YOU IN PICTURES, WHY THIS IS HIGHLY NEEDED.
UH, THE SABINE PASS WASTE, UH, SEWER COLLECTION SYSTEM, HALF A MILLION THAT'S MANDATED BY, UH, AN AGREED ORDER WE HAVE WITH THE TCEQ TO DO 500,000 A YEAR, REPLACING PIPE MANHOLES, A WATER RESERVOIR AT THE WATER TREATMENT PLANT.
THE LFA CANAL WATER COMES TO THAT RESERVOIR FROM IT.
WE TAKE WATER TO THE PLANT, UH, THERE'S ABOUT THREE FOOT OF SLUDGE LIMITING HOW MUCH WE CAN STORE.
AND THAT'S NOT SOMETHING WE WANT TO BE LIMITED ON.
SO WE NEED TO DREDGE THAT CANAL.
UH, THE ELVIS, THE FORCE MAIN THE COLLECTION SYSTEM REHAB, WHICH IS INSIDE CITY LIMITS ALL OVER THE TOWN AND, UH, ELEVATED STORAGE TANK REHAB FOR 900,000.
SO WE PROPOSING TO DO $6.7 MILLION IN CAPITAL PROJECTS IN 20 23, 2 0.2 MILLION OF THAT WE WILL BE PAYING FOR IN CASH.
AND THAT'S AGAIN, BASED ON THE PROPOSED RATE INCREASE, AND 4.5 MILLION WILL BE A BOND SALE.
WHY DO WE HAVE CAPITAL IMPROVEMENT PROJECTS? BECAUSE WE WANT TO PROTECT PUBLIC HEALTH AND SAFETY, PROVIDE UNINTERRUPTED SERVICES TO OUR CITIZENS AND IMPROVE THE QUALITY OF LIFE.
SECONDLY, WE HAVE TO MEET OR EXCEED THE ENVIRONMENTAL PROTECTION AGENCY AND TCEQ RULES, REGULATIONS, AND REQUIREMENTS.
AND WE HAVE TO HAVE CAPITAL PROGRAMS TO REHABILITATE AGING INFRASTRUCTURE AND REPLACE IT BECAUSE IT IS IMPOSSIBLE TO DO ALL THAT USING OPERATING FUND AND I'M GOING TO DEMONSTRATE TO YOU IN FEW PICTURES, THE NEED FOR THE, UH, PROGRAMS WASTEWATER CONVEYANCE SYSTEM.
WE HAVE PLENTY OF CAVITIES ON SILVER LINES THAT NEED TO BE REPLACED MANHOLES THAT ARE FAILING.
THE BIGGEST PROBLEM WE ARE FACING TODAY AS A UTILITY IS OUR SANITARY SEWER LIFT STATIONS, LOOKING AT THESE PICTURES AND SEEING THE ELECTRIC WIRING, THE RUST ON THE PIPING, THE CORROSION ON THE PUMPS.
THESE ARE ITEMS THAT NEED TO BE ADDRESSED.
WE HAVE TO FIX OUR SHOULDER LIFT STATIONS.
WE HAVE 12 OF THEM RIGHT NOW, UNDERGOING MAJOR HABILITATION ON ELECTRICALS AND CONTROL PANEL, BUT WE HAVE A LOT MORE WORK TO DO.
THAT'S WHY YOU SAW A $2 MILLION CAPITAL PROGRAM FOR REHABILITATION OF LIFT STATIONS, THE WATER DISTRIBUTION SYSTEM.
AGAIN, WE HAVE A $9 MILLION WORTH OF WATER LINES THAT ARE DESIGNED, READY TO GO FOR THE BEDS, BUT WE'RE NOT PROPOSING THIS FOR THIS YEAR.
IT WOULD BE COMING IN THE 2024 BUDGETS AND THEN THE RATE INCREASE OPTIONS AND IMPACTS AND, UH, DR.
COSMIN MARK NEEDED TO ASK YOU SOMETHING.
BEFORE YOU GO FOR IT, YOU JUST WANTING TO GO BACK TO WHERE YOU, YOU WERE TALKING ABOUT THE CAPITAL IMPROVEMENT OBJECTIVES AND ON THAT BULLET POINT, NUMBER THREE, REHABILITATE REPLACE AGING INFRASTRUCTURE.
I DIDN'T SEE ON THE, UH, THE LISTING HERE IN THIS YEAR, THE, UH, 19TH STREET TERMINAL ROAD, UH, THE INFRASTRUCTURE THAT WE, BECAUSE WE, WE CONTINUE TO HAVE THE FLOODING ISSUE OVER THERE ON THE WEST SIDE.
AND I THOUGHT WE HAD GONE THROUGH AS A DRAINAGE.
I JUST WANT TO MAKE SURE, OKAY.
WELL, CAN I GIVE YOU SOME OPTIONS AND SOME NUMBERS THAT, UH,
[01:15:01]
YOU CAN CONSIDER AND THEN DECIDES WE WANT TO STOP THE PROGRESS.DO WE WANT TO GO BACKWARDS? AND I MAINTAIN THE SAME PHASE.
AND THESE ARE OPTIONS THAT THE COUNCIL WILL HAVE TO MAKE WITH THE MAYOR.
SO WE START WITH THE 10% INCREASE.
SO I'M THINKING I MISSED A SLIDE, SORRY.
THE W IN MAY, UH, 12 20, 22, THE CITY HIRED A COMPANY CALLED WELDON FINANCIAL TO EVALUATE THE WATER FUND, THE RATES, THE OPERATING COST, THE PROJECTED CAPITAL PROGRAMS. AND THIS COMPANY CAME UP WITH A PROJECTED RATE INCREASES STARTING IN 2021 THROUGH 2025.
AND THEY PROPOSE A 9.8% IN 21 THAT WAS SUPPOSED TO TAKE PLACE IN JANUARY.
IT TOOK PLACE IN MARCH IN 2022, THEY PROPOSE A 10.1%.
THEN IT GOES DOWN IN 2024 TO 3.6% IN 2025 TO 3.6%.
THEY DIDN'T HAVE THE NUMBERS THAT WE HAVE TODAY.
THEY DIDN'T HAVE THE INFLATION WE'RE FACING TODAY.
SO THEY'RE NOT VERY, VERY ACCURATE, BUT THEY'RE CLOSE TO WHERE WE CAN BE TO KEEP US BALANCED AND KEEP THAT MOMENTUM GOING.
HANNAH, DID WE HAVE A WORKSHOP? UH, UH, ONLY LOOKED LIKE WE HAD LIKE A WORKSHOP ON ZOOM WITH THIS COMPANY, A ZOOM WORKSHOP IN 2020.
THEY DID A WORKSHOP WITH THIS CAMERA.
I JUST WANTED TO MAKE SURE I REMEMBER IT CORRECTLY.
IT WAS DURING COLLEGE, BUT I REMEMBER THEM DOING IT.
WHEN WE TALK ABOUT THESE PROJECTOR, A RATE INCREASE WITH THAT ALSO INCLUDES INDUSTRY AS WELL AS TOTAL ACCOUNTS.
WHEN WE TALK ABOUT THOSE MORE THAN 17 K THAT'S TOTAL ACCOUNTS AS EVERYONE.
WE HAVE ABOUT 12,000 ACCOUNTS THAT ARE RESIDENTIAL AND THE REST ARE COMMERCIAL.
THAT OTHERS, EVERYBODY QUESTION.
IS THERE ANYTHING, AND MAYBE THE ATTORNEY CAN HELP US WITH THIS, AS WE START TALKING ABOUT TRYING TO DO THOSE THINGS, UH, THAT WOULD BE EXPEDIENT AS FAR AS INCREASES THAT YOU KNOW, ARE GOING TO HAVE TO BE MADE.
IS THERE ANYTHING THAT LIMITS US FROM, UM, DOING SLIDING SCALES OR FROM, UH, UH, MAYBE, UH, PLACING MORE OF THE BURDEN ON BUSINESS AS OPPOSED TO RESIDENTIALS LEGAL QUESTION IT CHARTER.
IF WE STARTED TALKING ABOUT WHEN WE'RE DOING INCREASE, YOU KNOW, WE'RE LOOKING AT INCREASE, BUT IF WE START TRYING TO DO A SLIDING SCALE, OR IF WE START, I'M THINKING ABOUT A LOT OF THINGS, AS FAR AS SLIDING SCALE IS CONCERNED, BECAUSE I HAVE ANOTHER QUESTION THAT I WANT TO TALK TO ABOUT, AS WE'RE TALKING ABOUT THE INCREASE FOR, FOR, UH, SALARIES AND FOR EMPLOYEES AS WELL.
UH, AND I'LL GET TO THAT QUESTION BEFORE WE LEAVE, BUT IS THERE ANYTHING THAT PROHIBITS US FROM SAYING THEY WILL HAVE AN INCREASE ON BUSINESSES, BUT NOT SO MUCH OF AN INCREASE ON, ON RESIDENTIALS? OR DOES THAT INCREASE? IF WE SAY 10% IS THAT ACROSS THE BOARD, IS THAT EVERYBODY DOES THE INCREASE HAVE TO BE ACROSS THE BOARD FOR BUSINESS, RESIDENTIAL, WHATEVER.
CAN, YOU CAN STRUCTURE IT THE WAY YOU WANT, BUT YOU HAVE TWO DIFFERENT PARTS OF AN ORDINANCE IN THE ORDINANCE.
YOU HAVE ONE ORDINANCE FOR RESIDENTS AND YOU HAVE ONE ORDINANCE FOR BUSINESSES.
SO THERE ARE TWO DIFFERENT RATE STRUCTURES, BUT YOU CAN STRUCTURE EITHER ONE OF THEM THE WAY YOU WANT.
THAT'S THE QUESTION IS THIS, THIS, AND I'M SORRY, I DIDN'T MEAN TO INTERRUPT YOU AT ALL.
I CAN ALWAYS ASK YOU LATER, BUT THIS IS YOU TALKING ABOUT RESIDENTIAL.
AND ALSO WE'RE TALKING ABOUT LET'S TALK NUMBERS.
WE'RE TALKING ABOUT RESIDENTIAL IMPACT.
YOU GOT BUSINESSES, USAGE DEPENDS ON THEIR REVENUE AND THEIR REVENUES ARE UP.
THEY'RE NOT GOING TO, YOU KNOW, BE TOO CONCERNED ABOUT PAYING MORE FOR THEIR WATER.
SO IF THEY'RE NOT CONCERNED, NOT AS MUCH AS OUR RESIDENTS WOULD BE.
THAT'S WHY I ASKED THAT QUESTION EXACTLY.
WHEN WE TELL SEMPRA THAT THEIR WATER BILL IS GOING TO GO UP AND MILLION $49,000 A YEAR, IF WE DO A 15% INCREASE, WE ARE GOING TO HEAR THEIR VOICES.
BUT, UM, I'M GOING TO HEAR MS. I'M GONNA HEAR MISS MS. JONES, HIS VOICE TO ABSOLUTELY.
[01:20:01]
I I'M, I'M HITTING EVERYBODY COUNCIL.SO ABOUT THE DIFFERENT RATE INCREASES THAT, YOU KNOW, WE CAN DISCUSS WHAT I WANT YOU TO KEEP ON YOUR MIND ARE TWO NUMBERS.
THE FIRST NUMBER IS WE PROJECTING TO MAKE $36 MILLION IN REVENUE.
IF WE DO A 15% INCREASE AND WE ARE PROJECTING TO SPEND 35 MILLION TO OPERATE, IF THERE IS NO RATE INCREASE, IF THE RATE INCREASE IS ZERO, THERE'S GOING TO BE A $4.8 MILLION NUMBER THAT WE HAVE TO FIND SOMEWHERE.
AND THAT NUMBER CAN COME FROM MULTITUDE OF THINGS THAT WE WILL DISCUSS AS WELL.
BUT IF NO RATE INCREASE, WE ARE AT $4.8 MILLION DEFICIT OR SPENDING MORE THAN WE ARE MAKING.
IF WE DO A 10% RATE INCREASE THAT 10% WILL GENERATE $3.3 MILLION.
IT WILL WORK FOR US TO END UP WITH A BALANCED BUDGET.
BECAUSE IF YOU LOOK AT CANDY'S NUMBERS FOR REVENUE AND PROJECTION, AT THE END OF THE YEAR, THERE'S A $1.5 MILLION ROUGHLY EXTRA.
SO THE 1.5 PLUS THE 3.3 WILL GET US TO THAT 4.8.
SO IF YOU DO A 10% RATE INCREASE, WE WILL STILL BE ABLE TO SPEND WHAT WE NEED TO SPEND.
BUT AT THE END OF THE BUDGET YEAR, WE WILL NOT HAVE A SURPLUS.
WE WILL BE BALANCED OR PRETTY CLOSE TO BALANCE.
IF WE'RE IN THE NEGATIVE, IT WOULDN'T BE AS BAD AND THE NEGATIVE.
SO THE 10% WILL GET US IN THAT RANGE.
IF WE GO TO THE 15%, WE'RE NOT GOING TO EVEN TALK ABOUT THAT 20%.
OKAY, WE'RE GOING TO SCRATCH THAT OFF.
IT WILL GET US TO THAT BALANCED NUMBER.
PLUS THAT SURPLUS THAT WE HAVE NOW, I HEARD YOU LOUD AND CLEAR OF WHAT YOU WANT TO DO, ESPECIALLY COUNCILWOMAN HOMES OF HOW CAN WE MINIMIZE THE IMPACT OF THAT RATE INCREASE ON OUR CITIZENS.
CAN WE DO LESS THAN 10% AND STILL BE ABLE TO FUNCTION PROPERLY? WE CAN DO LESS THAN 10%, BUT SOMETHING HAS TO BE CUT.
AND THE ITEMS THAT WE HAVE THAT WE MIGHT BE ABLE TO CUT FROM INSTEAD OF SPENDING 2 MILLION ON LIFT STATIONS, WHICH IS HIGHLY NEEDED, I MIGHT HAVE TO SPEND ON THE 1 MILLION, FOR EXAMPLE, INSTEAD OF DOING ALL THE NEW PROGRAMS THIS YEAR, I CAN CUT MAYBE 30% OF THEM.
AND THESE ARE THINGS THAT WE CAN COME BACK TO YOU WITH.
ONCE YOU GIVE US DIRECTION OF, WE DON'T WANT THAT EIGHT INCREASE.
SO WE WILL STAY WHERE WE ARE AND FIGURE OUT HOW ARE WE GOING TO CUT 4.8 MILLION OR, HEY, WE'RE WILLING TO INCREASE IT BY X PERCENTAGE.
SEE, WHERE CAN YOU GET US THERE AND MINIMIZE THE IMPACT ON PUBLIC HEALTH AND SAFETY AND ON, UH, QUALITY OF SERVICE.
SO, UH, I CAN'T MAKE THIS DECISION FOR YOU AND BELIEVE ME, I UNDERSTAND HOW DIFFICULT OF A DECISION THIS IS AT THIS TIME.
I'M GLAD I'M ON THE SIDE OF THIS BOAT, NOT ON YOUR SIDE, BECAUSE NO MATTER WHAT DECISION YOU MAKE TODAY, SOMEBODY IS GOING TO BE NOT HAPPY, NO MATTER WHAT DECISION YOU MAKE, THERE'S GOING TO BE SOME PEOPLE THAT ARE NOT GOING TO BE SATISFIED BECAUSE EITHER THEIR SERVICES ARE NOT SUPERIOR BECAUSE WE COULDN'T GO REPLACE THEIR SOLAR LINE THIS YEAR AT THEIR HOUSE, OR SOMEBODY'S GOING TO BE UPSET BECAUSE THEY HAD A WATER BILL WENT OUT.
BUT IF YOU LOOK AT THE 10% INCREASE TO GIVE YOU AN IDEA OF WHAT DOES THAT MEAN TO THE CITIZEN? IF YOU DO USE 6,000 GALLONS A MONTH, THAT'S $6 AND 82 CENTS ADDITIONAL COST FOR PEOPLE WHO ARE NOT AS FORTUNATE AS OTHERS, WHEN IT COMES TO INCOME AND FINANCIAL STABILITY USING AROUND 3000 GALLONS A MONTH, THAT WILL MEAN THEY'LL HAVE TO PAY ANOTHER $3 AND 70 CENTS A MONTH FOR THEIR WATER SERVICE.
IT'S THE KIND OF SERVICE JUST LIKE ENTITY.
YOU KNOW, I BEEN LAST MONTH WITH $150 MORE COMPARED TO SAME MONTH LAST YEAR, THE FUEL SURCHARGE, A HUNDRED
[01:25:01]
SOMETHING DOLLARS.IF I WANT TO SAVE SOME MONEY, I CAN PUT IT AT 73 AND YOU HAVE A SIMILAR TYPE SITUATION WITH UTILITIES.
I MEAN, WE LOOKED AT SOME NUMBERS, A FAMILY OF THREE THAT DURING THE WATER ON AND OFF, WHEN THEY'RE BRUSHING THEIR TEETH IN THE MORNINGS, THAT OF KEEP IT RUNNING CAN SAY MORE THAN $30, 70 CENTS A MONTH ON THAT, YOU KNOW, CUTTING ALONE.
SO, YOU KNOW, I'M TRYING TO MAKE A HARD DECISION, EASY FOR YOU, BUT IT'S NOT EASY.
NOTHING IS GOING TO MAKE IT EASY, BUT WE NEED DIRECTION FROM YOU.
WE NEED SOME KIND OF WHERE YOU WANT TO GO WITH THIS.
WHAT WOULD YOU LIKE US TO DO? SO WE KNOW WHAT WE NEED TO DO WITH THIS BUDGET.
AND DO WE NEED TO CONTINUE THE PROGRESS THAT WE ARE ON TODAY? DO WE NEED TO SLOW IT DOWN? DO WE NEED TO STOP IT? DR.
IN YOUR PRESENTATION, I'M WANT TO BE SURE THAT I UNDERSTAND IT CORRECTLY.
I'VE BEEN AS WELL, DAN FINANCIAL AND THEY ARE THE, UH, THAT THAT'S THE GROUP WHO DID THE PROJECTIONS FOR, WAS TO GET THE STUDY FOR US.
AND THEY HAVE COME UP WITH AN INCREMENTAL, UH, INCREASE OVER THE NEXT FIVE YEARS FROM 2021 THROUGH 2025.
BUT THAT IS BASIC SAID ON THING YOU HAD WASN'T INTO IT IS WHAT WE'RE DEALING WITH NOW WITH MAYBE GOING INTO A RECESSION AND INCREASING GOODS AND SERVICES, JUST LIKE ECONOMIES OF SCALE, I GUESS THAT'S GOING ON RIGHT NOW.
BUT WITH THEIR RECOMMENDATIONS BY 25, WITH THOSE PERCENTAGE INCREASES EACH YEAR AND WITH THE 17, 18,000 CUSTOMERS, THAT WOULD ACTUALLY LEVEL US OFF IN THE CITY, IN OUR PUBLIC WORKS OR WATER DEPARTMENT WITH, UH, FRESH WATER AND WITH, UH, DOING THE IMPROVEMENTS THAT NEED TO BE DONE AND MAINTAINING THE SERVICE LEVEL OF THE, UH, SERVICE DELIVERY TO CITIZENS THAT THEY WOULD EXPECT IF WE DON'T ADOPT THIS OR SOMETHING VERY SIMILAR, THEN WE WILL DECREASE.
IF I'M CORRECT, IF I'M UNDERSTANDING CORRECTLY, I WOULD DELIVERY TO THE CITIZENS TREMENDOUSLY.
AM I CORRECT? THAT IS CORRECT.
BECAUSE THOSE RATE INCREASES, DON'T ONLY FUND THE CAPITAL PROGRAM.
THEY ALSO FUND THE OPERATIONS.
RIGHT? I'LL GIVE YOU AN EXAMPLE.
WE WERE ABLE THIS YEAR TO PUT IN, IN THE BUDGET FOR $2.2 MILLION IN EQUIPMENT, SORRY, TWO POINTS.
AND THE REASON WE NEED TO DO THAT, IF YOU LOOK AT THE FOUR YEARS PRIOR, WE WERE SPENDING BETWEEN 300,000 AND 400,000 ON THE EQUIPMENT ON A DEPARTMENT THAT DEPENDS HIGHLY ON EQUIPMENT.
SO WE HAVE CREWS THAT ARE HAVING TO WAIT ON OTHER CREWS TO FINISH CERTAIN JOB, TO BORROW A TRAILER, FOR EXAMPLE.
SO GETTING THIS EQUIPMENT IS GOING TO GET US HIGHLY, HIGHLY, MORE EFFICIENT, TO BE ABLE TO PROVIDE BETTER AND FASTER SERVICES.
NOW, WE WERE ABLE TO DO THAT WITHOUT A BIG IMPACT ON THE BUDGET BECAUSE THIS COMING YEAR, OUR DEBT PAYMENT IS GOING DOWN BY $2 MILLION.
SO WE DIDN'T HAVE TO COME AND SAY, I NEED AN EXTRA 2 MILLION OVER WHAT I HAVE TODAY.
WE WERE ABLE TO USE THAT MONEY TO GET SOME MORE EQUIPMENT.
AND AS YOU SEE FROM THEIR PROPOSAL, IT STARTS AT 10.1 THIS YEAR, BUT IT GOES DOWN TO 3.6 FOR THE LAST TWO YEARS OF THE NEXT FIVE YEARS, BECAUSE THE MORE WE FIXED, THE LESS WE WILL HAVE TO DO, HOWEVER, THAT DOESN'T MEAN THE WORK IS GOING TO END IN FIVE YEARS, OR UTILITIES IS A CONTINUOUS OPERATION AND A CONTINUOUS REHABILITATION AND REPLACEMENT THAT TANK WE JUST PAINTED ON WEST BARAKA ROAD, 10 YEARS FROM NOW IS GOING TO NEED TO BE PAINTED AGAIN.
WE DID THIS FOR $700,000 LAST YEAR, PROBABLY BE 1.3 MILLION IN 10 YEARS.
BUT WHAT WE HAVE TO DO IS GET TO A POINT TO WHERE WE ARE FIXING FASTER THAN IT'S FAILING.
AND RIGHT NOW IT IS FAILING FASTER THAN WE ARE FIXING.
SO WE ARE NOT CATCHING UP AND WE WILL NOT CATCH UP IF WE DON'T SPEND THAT MONEY ON THE INFRASTRUCTURE THAT WE NEED TO SPEND, THAT WILL REQUIRE ONE KIND OF RATE INCREASE OR ANOTHER.
SO, AND I'M APPRECIATIVE FOR YOUR VOTING FOR THAT 0.03 X, UH, CUTS IN A FEW WEEKS, SAVES ME $85 AT MY HOUSE.
DID YOU HAVE SOMETHING? THANK YOU MIRROR JUST,
[01:30:01]
JUST REAL QUICK.AND, UH, I TOTALLY RESPECT YOUR, YOUR, UH, PRESENTATION AND UNDERSTANDING, BUT YOU KNOW, IT KIND OF MIND BOGGLES ME WHEN WE TALKED ABOUT OPERATION SIDE OF IT.
YOU KNOW, WE, WE HAVE EMPLOYEES THAT WE DON'T HIRE IN A DEPARTMENT WHERE YOU HAVE EQUIPMENT THAT WE DON'T BUDGET FOR.
AND THEN WE, WE MAKE IT SEEM LIKE AS A DIRE NEED, IF WE DON'T DO THIS, THAT IT HAPPENED THIS WAY, BUT THERE'S OTHER FACTORS THAT HAS TO BE ACCOUNT OR PUT INTO THIS MATRIX THAT YOU'RE TALKING ABOUT, UH, WITH THE OPERATING COSTS.
SO, YOU KNOW, I WAS PUTTING THIS IN, UH, COUNCILWOMAN, MOSES, KYLE JONES, MYSELF.
UH, WE WERE IN THIS POSITION IN 18 AND, YOU KNOW, IT WAS A VERY HARD, DIFFICULT SITUATION TO BE PUT BACK IN THE SAME SITUATION AND TO GET ALL THE PHONE CALLS AND GETTING ALL THE MEDIA A RESPONSE ABOUT WHY WOULD YOU DO THAT TO THIS CITY? BUT WE HAVE SO MANY OTHER FACTORS THAT WE HAVE TO DEPEND UPON WHEN YOU TALK ABOUT OPERATION COSTS AND MAINTENANCE AND, AND EMPLOYEES THAT WE STILL, YOU KNOW, IN THE RED, ON OUR SIDE, DOING OUR SIDE AND MAKING SURE THAT IT HAPPENS.
I, I, I DO AN 18 RIGHT NOW ABOUT THIS DECISION THAT WE'RE GOING TO HAVE TO MAKE.
WHEN I THINK ON THE BUSINESS SIDE OF THIS AS A COUNCIL MEMBER, YOU KNOW, I GOT TO DO THE RIGHT THING FOR THE DISTRICT AND THE CITY, BUT THE CITY SIDE, THE STAFF SIDE HAS TO DO THE SAME THING.
WHEN THIS COUNCIL IS ASKING THESE TOUGH QUESTIONS ABOUT EMPLOYMENT AND EQUIPMENT, THE MAINTENANCE OF THIS, THE EQUIPMENT, YOU KNOW, W HOW DO YOU THINK WE FEEL WHEN WE ARE PUT IN THE SAME SITUATION YEAR AFTER YEAR, AND NOW WE'RE SAYING THIS POSSIBLY THEY'RE GOING TO HAVE TO HAVE, LIKE WHAT THE MAYOR STATED A FIVE-YEAR PROGRESSIONAL, A RATE INCREASE.
AND LIKE, YOU JUST ALSO STATED THAT IT'S JUST NOT GOING TO STOP IN FIVE YEARS.
WE'RE GOING TO STILL HAVE THESE PROBLEMS IN FIVE YEARS, AND WE HAVE TO STAY AHEAD OF THESE PROBLEMS. SO I AGREE WITH YOU, MAYBE SHE HAD COUNCILMAN AND LOOK, UH, IT'S NOT AN EASY TO SAY, AND I'LL SAY THAT ONE MORE TIME, BUT IT'S A DECISION THAT MUST BE MADE IF WE WANT TO STOP THIS FROM RECURRING OVER AND OVER AGAIN, LIKE YOU SAID, IF THIS RATE INCREASE IN 19 TOOK PLACE IN 20 TOOK PLACE AT THE FOUR TO 6%, LIKE I WAS PLANNING TO DO IT, I WOULDN'T BE HERE SAYING IT'S GOING TO TAKE 10% ACTUALLY BALANCES.
I WOULDN'T BE COUNTING HERE AND SAYING, WE NEED MORE MONEY, BECAUSE THAT WOULD HAVE BEEN SPLIT THROUGHOUT THESE YEARS.
AND UNFORTUNATELY IT DIDN'T HAPPEN.
BUT IF WE DO THIS AND CONTINUE ON THE SAME PACE, I KNOW THESE FOLKS ARE PROPOSING A 9.8% NEXT YEAR, BUT I THINK WE CAN CUT THAT DOWN AND NOT HAVE THAT MANY PERCENTAGES INCREASED EVERY YEAR, BUT WE HAVE TO KEEP UP WITH THAT PLAN.
WE CAN NOT SPORADICALLY DECIDE WE'RE GOING TO DO ONE HERE AND ONE THERE, AND THEN START SUFFERING THESE CONSEQUENCES.
I REALLY APPRECIATE IT MANAGER, I GUESS WE'RE GETTING, AND I'VE BEEN TALKING TO RON AND HE KNOWS NO, IT'S A DIFFICULT SITUATION FOR US, BUT, UH, IF YOU WILL COME BACK WITH THOSE ALTERNATE, UH, OPTIONS FOR THE COUNCIL, SO WE CAN KIND OF BE AT EASE JUST A LITTLE BIT, YOU KNOW, PROVIDED INFORMATION FOR US.
I CAN DEFINITELY COME BACK WITH OTHER OPTIONS FOR PERCENTAGES AND SHOW YOU WHERE WE CAN LIKE, MAKE SOME CUTS FROM, AND THAT WAY, UH, IT GIVES YOU MORE OPTIONS TO PICK FROM.
WE CAN DEFINITELY DO THAT PART, LIKE, OKAY, THANK YOU, COUNCILOR MOSEY.
YEAH, JUST QUICKLY, MARY, WHEN YOU WERE, UM, YOU BROUGHT UP THE WELDON FINANCIAL, THEY WE'LL PUT THE, THE, UM, HOLD AND OUR WELDING.
AND OUR PLAN FROM WELDON WAS THAT WE DIDN'T CARRY THROUGH ON, ON OUR PART AND KEEPING US KEEPING THE INCREMENTS COMING.
AND AS A COUNCIL, WE'RE TRYING TO ALLEVIATE SOME OF THE PAIN.
OUR, UH, CITIZENS WERE SUFFERING THROUGH COVID.
SO I THINK TWO OR THREE OF THOSE STEPS THAT THEY WERE NOT CHARGED.
SO HERE WE ARE DOWN TRYING TO PLAY CATCH UP, BECAUSE AGAIN, WE DID WHAT DIDN'T GO BACK AS FAR AS WHAT PEOPLE DID, AND THE COUNCIL DID IN 2011, BUT WE CERTAINLY DIDN'T HELP, UH, BY NOT CONTINUING WHAT WE NEEDED TO DO AND LET IT BE STEADY RATHER THAN HERE.
NOW WE ARE TRYING TO PLAY CATCH UP AND IT HURTS.
SO I THINK, DO I THINK I HAVE A CLEAR UNDERSTANDING OF WHY, WHY WE'RE HERE AND WHILE WE'RE AT 10%, 15%, BECAUSE WE DIDN'T DO WHAT WE NEEDED TO DO AND CONTINUE THE PLAN REPRESENTED OR PRESENTED TO US BY WELDON FINANCIAL GROUP.
AND COUNCIL MADE IT VERY CLEAR DURING COVID THAT WE WANT TO MINIMIZE THE IMPACT ON OUR CITIZENS.
AND YOU ALL MADE THE RIGHT DECISION AT THE TIME.
AND WE TOOK A LOT OF MEASURES TO MAKE THAT HAPPEN.
[01:35:01]
THOUGH, WE DIDN'T DO A RATE INCREASE, WE WERE STILL IN THE POSITIVE.HOWEVER, THE ONLY REASON WE'D COME IN WITH THIS RATE INCREASE TODAY IS TO LET YOU ALL KNOW IF WE DON'T DO IT, WE ARE GOING TO GO BACK IN THE NEGATIVE, BUT IN THE LAST, SINCE 2021, YOU KNOW, WE'VE BEEN DOING GOOD.
SO THAT'S, MY JOB IS TO LET YOU KNOW, IF WE DON'T DO SOMETHING WE'RE GOING TO HAVE TO GO BACK TO THE NAKED.
LAST THING I KNOW WE GOT TO GO INTO CLOSED SESSION, BUT ONE OF THE THINGS THAT I WANT TO LOOK FORWARD TO, OR TO LOOK AT AS WE'RE GOING FORWARD, AS WE'RE TALKING ABOUT THIS INCREASE FOR OUR, UH, CITIZENS, UM, WE'RE TALKING ABOUT A 4% INCREASE, AND THAT'S BEEN THE RECOMMENDATION FROM STAFF.
UH, ONE OF THE THINGS I WANT TO LOOK AT IT AND WANT THAT QUESTION IS, HAS THERE EVER BEEN A STUDY OR A LOOK AT A STUDY AS FAR AS THE SALARIES ARE CONCERNED FOR OUR CITIZENS, UH, FOR OUR STAFF, UM, TO MAKING ANY KINDS OF ADJUSTMENTS FOR STAFF, FOR EMPLOYEES WHO HAVE BEEN, UM, WHO HAVE GIVEN LONGEVITY TO THE, TO THE CITY, UH, AND WHETHER OR NOT, UM, YOU KNOW, THERE ARE ANY GAPS THERE FOR INDIVIDUALS WHO HAVE 10 YEARS PLUS WITH THE CITY AND THOSE, UH, AND THOSE ADJUSTMENTS.
SO I WANNA KIND OF TALK ABOUT THAT AND IS THAT INCREASE THAT WE'RE TALKING ABOUT IS THAT INCREASED GOING TO BE THAT 4% ACROSS THE BOARD? UM, BUT I WANNA LOOK AT THE GAPS AS WELL FOR, BUT SHOULDN'T BE ON THAT.
WE'RE GOING TO DEAL WITH THAT THE NEXT, WELL, I'M JUST, I'M TALKING ABOUT, I'M NOT TALKING ABOUT DOING IT NOW.
I'M TALKING ABOUT AS WE GO FORWARD, THAT'S WHAT I'M SAYING, BECAUSE THEY WERE SAYING THAT THOSE THINGS YOU'RE PROBABLY SPEAKING ON GOING TO BE THINGS THAT AT THE, ON YOU GAVE THAT THE DATES OR THE MIX, OR JUST WANTED TO PUT IT, PUT IT RIGHT HERE.
AND WHAT I'M TRYING TO DO, WE ARE WAY OFF SCHEDULE RIGHT NOW.
WE'VE GOT TO GO INTO EXECUTIVE SESSION.
WE WERE SUPPOSED TO BEGIN AT FIVE 30.
WE MAY END UP BEING AN EXECUTIVE SESSION LONGER THAN 30 MINUTES.
I EVER ATTORNEY, I DON'T SEE A PUBLIC HEARING, SO I'M NOT COMPELLED TO BEGIN A PUBLIC HEARING AT SIX O'CLOCK.
NO PUBLIC HEARINGS WERE ABOUT 20 OR 30 MINUTES OFF.
IT'S NOT GOING TO BE ANYTHING ILLEGAL.
YES, I GO RIGHT HERE AND I'M WRAPPING UP THE WORKSHOP MAY, UM, ADMIN TO SHOW THE COUNCIL THAT I WILL CONTINUE TO MEET WITH, UM, THE BUDGET STAFF, INCLUDING THE UTILITIES DEPARTMENT, UM, DR.
AND AS YOU KNEW, IT'S VERY CLEAR THAT WE DO NOT WANT TO GO BACK WHERE WE WILL.
WE ARE DIGGING FROM THE NEEDY AND, UM, SUPPLEMENTING THE ENTERPRISE PHONE, YOU KNOW, SO WE WILL CONTINUE TO WORK ON THOSE.
AND WE FIGURED, YOU KNOW, IN TERMS OF PERCENTAGES AND, UM, WE SHOULD COME UP WITH RECOMMENDATIONS TO COUNCIL AS TO WHAT WE THINK THAT COULD BE DELETED.
YOU KNOW, AND WHAT CANNOT BE DELETED AT THIS POINT THAT NEEDS, UM, ALL THE EXPEDIENT ATTENTION IN TERMS OF INFRASTRUCTURE IMPROVEMENT AND TO REITERATE, I THINK WHAT YOU SAID TO COUNSEL, UH, YOU DID SAY IF COUNCIL PERSONS HAVE CONCERNS WITH THE PROPOSED BUDGET, YOU CAN CONTACT ME BEFORE WE GET BACK TO THE, WE GET BACK TO THE NEXT SESSION.
I BELIEVE YOU WOULD AVAIL YOURSELF TO ADDRESS WHATEVER CONCERNS ANY PARTICULAR COUNCIL MEMBER WOULD HAVE.
WE WILL COME PREPARED WITH RESPONSES TO THE COUNCIL, YOU KNOW, INSTEAD WE, UM, BECAUSE REMEMBER THE BUDGET WORKSHOPS, UH, ONE OR TWO HOURS, UM, WE CAN'T ADDRESS.
IT WOULD BE BETTER IF WE DO THE RESEARCH AND WE PROVIDE IT IN OPEN SESSION SO THAT EVERYBODY KNOWS EVERYBODY'S OKAY WITH THAT.
WHAT I LIKE TO DO NOW IS WE NEED TO JOIN, UH, THE PUBLIC HEARING.
I MEAN, UP TO THE BUDGET HEARING, UH, YEAH, ESPECIALLY MEDIA AT THAT BEGAN AT THREE WITH ABOUT THREE 20, I BELIEVE.
UH, AND FAN EMOTION FOR THAT SECOND.
IT'S BEEN MOVED IN SECONDARY WITH, UH, A JAR IN THE SPECIAL MEETING THAT BEGAN AT THE DAY, THE THREE 19 DEALING WITH THE BUDGET TO BE READY TO PUT THE QUESTION ON THAT, READY TO VOTE ALL IN FAVOR.
THE AYES HAVE IT TO ITS AUDIT.
THE SPECIAL MEETING IS NOW OVER.