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PROGRESS.[I. INVOCATION, PLEDGE & ROLL CALL]
GOOD MORNING AND WELCOME TO THE CITY COUNCIL SPECIAL MEETING.WELL, WHERE WE WILL BE REVIEWING OUR BUDGET.
THE CITY COUNCIL OF THE CITY OF PORT ARTHUR WILL CONDUCT THE SPECIAL MEETING SCHEDULED TODAY AT 10:00 AM CENTRAL STANDARD TIME ON BY TELEPHONIC AND VIDEO CONFERENCE.
IN ADDITION TO ALLOWING IN-PERSON ATTENDANCE, A QUORUM OF CITY COUNCIL WILL BE PHYSICALLY PRESENT IN THE CITY COUNCIL CHAMBER, FIFTH FLOOR CITY HALL, 4 4 4 FOURTH STREET, PORT ARTHUR, TEXAS.
THE PUBLIC MAY PARTICIPATE IN THE MEETING IN PERSON OR BY DIALING ONE OF THE FOLLOWING TOLL FREE NUMBERS AND ENTERING THE MEETING ID 8 9 8 3 9 2 5 9 2 3 6 AND PASSCODE 6 4 8 1 7 0.
THEY MAY ALSO USE THE US TOLL FREE NUMBER OF 8 7 7 8 5 3 5 2 4 7 OR 8 8 8 7 8 8 0 0 9 9 IN COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT.
THE CITY OF PORT ARTHUR WILL PROVIDE FOR REASONABLE ACCOMMODATIONS FOR PERSONS ATTENDING CITY COUNCIL MEETINGS TO BETTER SERVE YOU.
REQUEST SHOULD BE RECEIVED 24 HOURS PRIOR TO THE MEETING.
PLEASE CONTACT THE CITY SECRETARY'S OFFICE AT 4 0 9 9 8 3 8 1 1 5 OR THROUGH THE WEBSITES AT WWW PORT ARTHUR TX.GOV.
PLEASE TURN OFF OR MUTE YOUR MOBILE DEVICES AND WE'LL STAND FOR THE INVOCATION PLEDGE OF ALLEGIANCE AND THEN HAVE ROLL CALL.
WILL YOU BOW WITH ME? OH HEAVEN.
ANY FATHER, THANKS AGAIN FOR ALLOWING THIS COUNCIL TO COME TOGETHER IN YOUR NAME, CONTINUE BLESSING THIS GREAT CITY OF PORT ARTHUR AND THE CITIZENS.
ALSO BLESS THIS MEETING THAT WE CONDUCTED IN YOUR EYES.
ALSO CONTINUE TO BLESS EACH AND EVERY ONE OF US HERE.
I PLEDGE OF 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 CITY.
SECRETARY, MAY WE PLEASE HAVE A ROLL CALL.
MAYOR PROTE HAMILTON PRESENT, COUNCIL MEMBER LEWIS.
COUNCIL MEMBER FRANK, YOU HAVE A QUORUM.
[II. WORKSHOP To Discuss The Proposed Fiscal Year 2023 – 2024 Budget]
YOU, MA'AM.TODAY'S WORKSHOP IS TO DISCUSS THE PROPOSED FISCAL YEAR 20 23, 20 24 BUDGET.
JUST FOR, UM, REFERENCE, WHEN WE ARE HAVING A WORKSHOP, COUNCIL IS ABLE TO ASK QUESTIONS AND THE PUBLIC MAY BE ABLE TO ASK QUESTIONS FOLLOWING THAT, HOWEVER, THEY'RE ONLY ABLE TO ASK QUESTIONS TO THE TRAINER OR WHOMEVER IS PRESENTING.
IS THAT CORRECT? TECHNICALLY, THE THE PUBLIC IS NOT ENTITLED TO ASK QUESTIONS UNLESS WE'RE TAKING ACTION WHEN WE DO HAVE TWO ACTION ITEMS. SO THEY CAN, THEY CAN SPEAK ON ANY ACTION ITEMS. OKAY.
SO FOR ANY MEMBERS OF THE PUBLIC, IF YOU DO HAVE QUESTIONS, WE'LL BE SCHEDULING A PUBLIC HEARING.
AND AT THAT TIME, I WOULD SUGGEST THAT YOU COME TO ASK YOUR QUESTIONS, BUT YOU'RE ALSO AVAILABLE TO SEND THOSE QUESTIONS IN ADVANCE AND DISCUSS THOSE IN DETAIL WITH YOUR COUNCIL MEMBER, CITY MANAGER, MAYOR PRO.
TIM, MAY I ASK A QUESTION? YES, MA'AM.
AND CITY MANAGER, JUST TO REMIND YOU ALL, UM, I DON'T KNOW IF YOU WANT TAKE IT OUT OF ORDER.
I DON'T WANT TO CHANGE THE MEETING ROUND, BUT WE DO HAVE TWO RESOLUTIONS MM-HMM.
TO VOTE ON AT AFTER THE PRESENTATION.
I GUESS THAT'S WHERE IT'S LISTED.
AND ON THOSE TWO ACTION ITEMS, THESE TWO PRS, IF SOMEONE WANTS TO SPEAK, THEY CAN.
UM, MAYOR
COULD YOU PULL YOUR MIC A LITTLE BIT CLOSER? SHE CAN CATCH YOU.
UM, THANK YOU FOR THAT OPPORTUNITY AGAIN.
UM, I JUST WANT TO THANK MS. DANIEL AND THE TEAM, UH, HER STAFF THAT HAS, UM, WORKED WITH US TO PREPARE THIS BUDGET.
WE DO HAVE A BUDGET THAT'S BEEN PRESENTED WITH SOME $40 MILLION IN CAPITAL IMPROVEMENTS, YOU KNOW, UM, UM, ADDED TO WHAT THE VARIOUS PROGRAMS AND PROJECTS WE HAVE UNDERTAKEN IN THE LAST BUDGET, WHICH WE CARRY OVER IN, INTO THIS
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BUDGET.UM, WE DO HAVE A VERY HEALTHY FUND BALANCE, WHICH, UM, OUR FINANCIAL DIRECTOR WILL INFORM US ABOUT.
AND, UM, SO WE WILL CONTINUE TO BUILD ON THAT AS WE MOVE ALONG.
UM, SO AT THIS POINT, LET ME HAND OVER TO MS. DANIEL TO BEGIN HER PRESENTATION.
I DO HAVE, WE DO HAVE TWO PRESENTATIONS FOR YOU THIS MORNING.
UH, I'VE GOT A LITTLE OVERVIEW FOR YOU, UM, GIVING YOU A LITTLE MORE DETAILS ON WHAT WE HAD LAST WEEK.
AND THEN WE ALSO HAVE A PRESENTATION FROM DR.
SO, UH, THIS IS THE FIRST PART, UM, FIRST PAGE, UH, LINDSAY IS PAGE TWO.
UH, WE HAVE A COMPARISON OF THE ASSESSED VALUE, AND THESE NUMBERS ARE IN BILLIONS.
AND YOU CAN SEE THAT THE CERTIFIED VALUE FROM FISCAL FROM TAX YEAR 22, WHICH IS FISCAL YEAR 23, WAS $3,769 MILLION FOR THIS FISCAL YEAR, WHICH IS TAX YEAR 23.
THE CERTIFIED VALUE WAS, UH, 4,238 MILLION, OR A $469 MILLION INCREASE, OR 12%.
SO, UH, THE ASSESSED VALUE DOES CONTINUE TO INCREASE, AND AS I MENTIONED BEFORE, THAT THE INCREASE IN VALUES LEADS TO A DECREASE IN THE TAX RATE.
NEXT PAGE, LINDSEY, UH, THIS IS THAT, UH, TAX RATE CALCULATION THAT I SHOWED YOU THE LAST TIME.
HOW THE JEFFERSON COUNTY CALCULATES THE NEW, NEW NO NEW REVENUE TAX RATE IS PREVIOUS, IS, UH, PREVIOUSLY CALLED THE EFFECTIVE TAX RATE.
AND IT'S BASICALLY THE TAX RATE NEEDED TO GENERATE THE SAME AMOUNT OF TAXES AS LAST YEAR.
THE VOTER APPROVAL RATE PREVIOUSLY KNOWN AS THE ROLLBACK RATE, IS THE HIGHEST TAX RATE A TAXING UNIT CAN ADOPT WITHOUT HOLDING AN ELECTION.
THERE WAS NEW LEGISLATION IN 2021, WHICH CREATED A MODIFICATION OF THE FORMULA USED FOR THE MAINTENANCE AND OPERATIONS RATE, AND IT CHANGED THE MAXIMUM RATE FROM 8% TO A THREE AND A HALF PERCENT INCREASE WITHOUT REQUIRING, REQUIRING AN AUTOMATIC ELECTION.
AND, UH, WE DID GET THE, UH, THE RATES FROM JEFFERSON COUNTY.
WE RECEIVED THEM ON AUGUST THE SECOND LAST WEEK, WHICH WAS AFTER OUR MEETING.
UH, AND IT DID RESULT IN A 4 CENT REDUCTION IN THE PROPERTY TAX RATE.
NEXT PAGE, LINDSEY, THIS KIND OF OUTLINES, UH, THE RATES THAT WE RECEIVED.
UH, THE NO NEW REVENUE TAX RATE, UH, THE NEW RATE IS 0.5 4 7 7 9 5, AND THAT IS THE 7 CENT DECREASE.
UH, THAT IS THE AMOUNT NEEDED TO GENERATE THE SAME AMOUNT OF TAXES.
AND THEN THE VOTER APPROVAL RATE IS 0.6486 4.6 4 8 6 4 1.
AND THAT IS A 4 CENT DECREASE.
AND THAT'S THE MAXIMUM RATE THAT WE CAN ADOPT.
AND IT'S A 4 CENT DECREASE FROM LAST YEAR.
SO IF YOU LOOK BELOW THAT, OUR PROPOSED RATE WOULD THEN BE, UH, THE, A TOTAL PROPOSED RATE OF 0.6 4 8 6 4 1, WHICH IS A 4 CENT DECREASE FROM LAST YEAR.
OUR DEBT RATE, UH, IS BASICALLY FLAT, ABOUT A HALF CENT DIFFERENCE, BUT THE MAINTENANCE AND OPERATIONS RATE, WHICH IS THE GENERAL FUND RATE, IS A 4 CENT REDUCTION.
UH, SO, UM, HOWEVER, UH, NO, NO DECREASE IN THE ESTI ESTIMATED PROPERTY TAX REVENUE WAS NEEDED.
UH, WHEN I DID THE ORIGINAL ESTIMATE FOR THE PROPOSED, UH, BUDGET, WE INCREASED THE REVENUES BY THREE AND A HALF PERCENT FROM THE CURRENT YEAR ESTIMATE FOR THE GENERAL FUND.
AND THIS ESTIMATE, THIS ESTIMATE APPROXIMATED THE REVENUES GENERATED, UM, FROM THE VOTER APPROVAL RATE, WHICH WAS 3.5% MORE THAN LAST YEAR.
SO THE REVENUES THAT I PROPOSED IN THE ORIGINAL BUDGET WILL STAY THE SAME AS FAR AS THE TAX REVENUES GO, BUT IT WILL RESULT IN A FOUR AND DECREASE IN THE RATE.
UH, WE HAVE, UH, A LITTLE EXPLANATION ABOUT FUND BALANCE.
FUND BALANCE IS VERY IMPORTANT.
UM, UH, IT IS AN ACCUMULATION OF REVENUES MINUS EXPENDITURES.
THE BEGINNING FUND BALANCE REPRESENTS AVAILABLE SPENDABLE RESOURCES OF THE FUND.
AND IT IS ES IT IS ESSENTIAL THAT GOVERNMENTS
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MAINTAIN ADEQUATE LEVELS OF FUND BALANCE TO MITIGATE REVENUE, SHORTFALLS AND UNANTICIPATED EXPENDITURES.NEXT PAGE, THIS SHOWS OUR FUND BALANCE POLICY.
AND, UH, AS MENTIONED BEFORE, THE TARGET FUND BALANCE IS 60 DAYS OF OPERATING EXPENDITURES PLUS ONE AND A HALF MILLION.
THE PROPOSED BUDGET WILL GENERATE, UH, AN ENDING FUND BALANCE OF 22 MILLION.
THE REQUIRED 60 DAYS EQUATES 12.5 MILLION, AND THE ADDITIONAL ONE AND A HALF MILLION IS SEVEN MORE DAYS, LEAVING THE EXCESS FUND BALANCE OF ABOUT 8 MILLION OR 40 DAYS.
NEXT PAGE, WE DO HAVE SOME, UH, STAFF RECOMMENDED CHANGES TO THE PROPOSED BUDGET WE GAVE YOU LAST WEEK.
UM, FOR THE GENERAL FUND, UH, WE, WE HAVE AN INCREASE IN REVENUES, UH, THE TRANSFER FROM THE WATER FUND FOR ADMINISTRATIVE AND COLLECTION COSTS.
WE NEED TO INCREASE THAT BY $587,000.
SO THAT GIVES US THE OPPORTUNITY TO INCREASE EXPENDITURES AS WELL.
UH, WE PROPOSE A, TO INCREASE THE COST OF LIVING ADJUSTMENT THAT WE RECOMMENDED FROM 2% TO 3%, AND THAT IS 524,000 FOR THE GENERAL FUND.
THAT WOULD ALSO INCREASE THE TRANSFER TO TRANSIT FOR THE CITY SHARE OF ADDITIONAL SALARY INCREASE $5,500, UH, INCREASE.
AND UH, ALSO WE WOULD LIKE TO INCREASE THE TRANSFER TO CAPITAL RESERVE TO PURCHASE A LYFT TRUCK FOR PARKS.
THE EFFECT ON THE OTHER FUNDS WOULD BE MINIMAL.
UM, UH, OTHER FUNDS INCREASE IN EXPENDITURES, UH, MAINLY DUE TO THE INCREASE IN COST OF LIVING ADJUSTMENT FROM 2% TO 3% WOULD AFFECT THE WATER FUND BY 96,000.
SOLID WASTE FUND BY 34,000 PLEASURE ISLAND FUND 6,000 TRANSIT 22,000 E D C 10,000.
AND THE REGULATORY ENFORCEMENT FUND $630, BUT ALSO INCREASE THE CAPITAL RESERVE FUND FOR THE PURCHASE OF THE LYFT TRUCK FOR PARKS.
NEXT PAGE, THIS SHOWS THE GENERAL FUND.
UM, AS WE PROPO, AS WE SUBMITTED THE PROPOSED WITH THE CHANGES, THE CHANGES RESULT IN A NET DECREASE TO FUND BALANCE OF ABOUT 87,000.
SO WE GO FROM AN ENDING FUND BALANCE OF 21.9 TO, UH, SLIGHTLY UNDER, UH, THAT OF 2020 1.9, ALSO 22 MILLION TO SLIGHTLY UNDER 22 MILLION.
BASICALLY, IT'S NOT A, IT'S NOT A BIG DIFFERENCE.
THE NEXT PAGE, UH, WE DO SHOW THE GENERAL FUND SUMMARY.
WE HAVE THE 23 BUDGET, THE 23 YEAR END ESTIMATE, AND THEN THIS IS THE 24 PROPOSED WITH THE REVISIONS THAT I JUST DISCUSSED.
UM, THE 24 BUDGET, WE HAD AN ENDING FUND BALANCE OF $24.7 MILLION.
AND YOU CAN SEE THAT THE S THAT THE ENDING BALANCE FOR THE ESTIMATE IS 27.8, UH, DUE TO HIGHER THAN EXPECTED REVENUES AND LOWER EXPENDITURES, WE WERE ABLE TO INCREASE THE FUND BALANCE BY ABOUT 3.1 MILLION.
AND THEN THE, UH, LAST COLUMN IS THE, UM, PROPOSED WITH THE REVISIONS AND THAT WOULD, UH, RESULT IN REVENUES OF 79.7 MILLION, OPERATING EXPENDITURES OF 75 MILLION TRANSFERS AND OTHER EXPENDITURES OF 10.6.
AND THAT WOULD BE, UM, EXPENSES OVER REVENUES OF 5.9 MILLION.
BUT THE POLICY BEING THAT WE WILL BALANCE THE BUDGET FOR OPERATING EXPENDITURES AND, UH, WE WOULD ONLY USE FUND BALANCE FOR TRANSFERS TO CAPITAL.
AND THE CAPITAL AMOUNT, UH, THAT WE'RE TRANSFERRING IS 7 MILLION.
SO WE ARE WITHIN THAT, UM, ALLOWED AMOUNT THERE, UH, RESULTING IN AN ENDING FUND BALANCE, LIKE I SAID, OF JUST UNDER 22 MILLION.
NEXT PAGE, UH, THIS JUST, UH, KIND OF OUTLINES THE TRANSFERS FROM THE GENERAL FUND, ALL OF THE DIFFERENT TRANSFERS.
AND YOU CAN SEE THAT THE CAPITAL AND EQUIPMENT TRANSFER IS 7 MILLION.
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THE GENERAL LIABILITY TRANSFER WILL BE 2.6 MILLION, AND THAT IS AN INCREASE OVER THE PREVIOUS YEARS OF 1.875.SO ALL THE FUNDS HAVE TO CONTRIBUTE A LITTLE BIT MORE THIS YEAR TO THE GENERAL LIABILITY FUND, UH, DUE TO THE FACT THAT WE'VE HAD A 65% INCREASE IN, UH, INSURANCE IN THAT AREA.
SO, UM, AND THEN WE HAVE A FEW OTHER SMALL TRANSFERS, E D C, UH, 133,000.
UM, E O C RENT, UH, THE TRANSIT OPERATING COSTS THIS YEAR, 673,000.
YOU NOTICE IN THE PREVIOUS YEAR WE DIDN'T HAVE ANYTHING FOR OPERATIONS AND THAT'S BECAUSE THEY HAD SOME EXCESS GRANTS THAT THEY WERE ABLE TO, UH, UTILIZE.
AND WE DIDN'T HAVE TO HAVE A COST TO THE GENERAL FUND IN THE PREVIOUS YEAR FOR TRANSIT THIS YEAR WE DID, UH, HEALTH GRANTS, 89,000.
THE GOLF COURSE, 50,000 TURNS, 45,000, MAKING A TOTAL OF 10.6 MILLION PER TRANSFERS OUT OF THE GENERAL FUND.
NEXT PAGE, UH, WE HAVE JUST A LITTLE OVERVIEW OF THE WATER UTILITIES FUND.
UM, YOU CAN SEE THAT, UH, OUR BUDGET FOR 2023, WE WERE EXPECTING A NET OF $625,000, UH, REVENUES OVER EXPENSES.
THE YEAR END ESTIMATE FOR, UH, 23, UH, IS TWO 2 MILLION.
AND AGAIN, DUE TO HIGHER THAN EXPECTED REVENUES AND LOWER, UH, EXPENSES, UH, WE, WE WERE ABLE TO INCREASE THE WATER FENCE POSITION BY ABOUT 1.4 MILLION FOR FISCAL YEAR 24.
UM, WE'RE SHOWING REVENUES OF 37.5 MILLION.
YEAH, THIS SLIDE YOU JUST READ A WHAT? WATER UTILITY FUND SUMMARY.
WHAT'S YOUR QUESTION, COUNSEL? YOU SAID THERE WAS, WHAT, WHAT WERE THE NUMBERS YOU READ? NO WATER FUND ONE FOR THAT LINDSAY WATER FUND.
IS THAT WHERE WE ARE? THAT'S RIGHT.
IS EVERYONE OKAY NOW? I'M SORRY.
I MAY HAVE FORGOTTEN TO TELL 'EM TO CHANGE THE PAGE.
I MAY HAVE FORGOT TO TELL 'EM TO CHANGE THE PAGE.
OKAY, THE WATER FUND, NOW WE'RE ON THE RIGHT PAGE.
UM, WOULD YOU LIKE ME TO START OVER WITH THE WATER FUND? JUST, YEAH,
THE, THE FISCAL YEAR 24 WATER FUND REVENUES REFLECT 37.5 MILLION, AND THAT IS AN IN A 7% INCREASE THAT WE BUILT INTO THE REVENUES FOR NOW.
UH, OPERATING EXPENDITURES OF 27.7, TRANSFERS OF 9 MILLION, LEAVING, UH, ABOUT AN $831,000, UM, POSITIVE, UH, IMPACT REVENUES OVER EXPENDITURES.
AND THEN THE LAST, NEXT PAGE, LINDSEY, IS THE SOLID WASTE.
UM, HERE AGAIN FOR, UH, THE 2023 BUDGET, WE EXPECTED, UH, TO COME IN ABOUT 689,000 REVENUES OVER, UH, EXPENSES.
UH, AND DUE TO A MUCH HIGHER REVENUE DUE TO, UM, A NEW CUSTOMER AT THE LANDFILL AND A SLIGHT REDUCTION IN THEIR EXPENSES, THEY'RE ABLE TO, UH, SHOW ABOUT A $1.5 MILLION INCREASE IN THEIR YEAR END, UH, ESTIMATE OF REVENUES OVER EXPENDITURES OF ABOUT 2.2 MILLION, UH, FOR 24.
UH, THAT DOES INCLUDE, UH, THE ESTIMATE FOR THE NEW, UM, POSITIONS, UH, THE, THE 1% ADDITIONAL IN, UH, SALARIES, UH, REVENUES OF 11.5 MILLION, UH, OR 11.6 MILLION OPERATING EXPENDITURES OF ABOUT 8 MILLION TRANSFERS OF 3 MILLION, LEAVING ABOUT A $500,000, UH, REVENUES OVER EXPENSES AT YEAR END.
AND, UH, THE NEXT PAGE, UM, THIS JUST REITERATES THE CALENDAR THAT WE SHOWED YOU LAST TIME.
THE NEXT WORKSHOP WILL BE ON THE 15TH.
AND THE LAST PAGE, LINDSAY, UM, LIKE I SAID, THE NEXT WORKSHOP WILL BE ON AUGUST 15TH, AND WE WILL BE DISCUSSING CAPITAL AND ANY OTHER TOPICS THAT YOU WOULD LIKE TO DISCUSS OR HAVE QUESTIONS ABOUT, WE'LL TRY TO GET THOSE ANSWERS FOR YOU FOR
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NEXT TIME.UH, IN THE MEANTIME, WE DO HAVE ONE MORE PRESENTATION BY DR.
TOME ON THE, UM, THE WATER RATES.
SO IF HE'S HERE, HE CAN COME UP AND DO THAT CITY MANAGER WHILE HE'S COMING UP, WHAT IS THE MOST EFFECTIVE WAY THAT YOU WOULD LIKE FOR US TO SEND YOU THOSE QUESTIONS? IS THERE AN OPPORTUNITY FOR US TO CREATE A MESSAGE BOARD? NO.
THOSE ADDITIONAL QUESTIONS THAT SHE'S TALKING ABOUT IN PREPARATION FOR THE, IT COULD BE MY EMAIL AS WELL.
YOU KNOW, AND THAT WOULD GIVE ME ENOUGH TIME TO WORK WITH THE FINANCE DEPARTMENT, UM, IN PREPARATION, IF YOU HAVE ANY QUESTIONS OR CONCERNS BEFORE THE 15TH, YOU KNOW, UM, SEND IT IN MY EMAIL SO THAT I WOULD HAVE THE ENOUGH TIME TO SIT WITH CANDY AND THE OTHERS TO DISCUSS IT.
THAT'S OUTSIDE OF THOSE QUESTIONS THAT WE WILL HAVE TODAY.
BUT IF THERE ARE ADDITIONAL ONES, THE MOST EFFECTIVE WAY IS ABSOLUTELY TO SEND THEM BY EMAIL.
UH, ABOUT THE WORKSHOPS WE HOLD IN THE WORKSHOPS AND WE GOT QUESTIONS, WE SHOULD BE BRINGING 'EM UP AT THE WORKSHOP.
I MEAN, IF, IF A COUNCIL PERSON EMAILED A QUESTION IN IF WE ALL MIGHT BENEFIT FROM IT, BUT IF WE DON'T HAVE THE, IF WE DON'T HEAR THE QUESTION, WE CAN'T BENEFIT FROM IT.
AND THAT'S THE PURPOSE OF THE WORKSHOP IS THAT WE DISCUSS IT, ISN'T IT? YEP.
I WILL PROVIDE FOR THE BENEFIT OF ALL THE COUNSELORS WE SEND IN THE QUESTION AND WE'LL PROVIDE A RESPONSE TO ALL THE COUNSELORS.
YOU'RE GONNA, YOU'RE GONNA BRING THOSE IN ADDITION TO WHATEVER YOU MAY HAVE.
IN ADDITION TO WHATEVER I ALL ADDITION, YOU MAY HAVE SAID THAT.
YOU CAN STILL ASK QUESTIONS TODAY.
IN ADDITION TO WHATEVER YOU MAY HAVE EVEN ON THAT DAY, YOU KNOW, BUT I THINK IT WILL HELP THE PROCESS FASTER.
AND IT'LL GET US MORE PREPARED.
MAY I PRO COUNCIL MEMBERS, UM, CAN I GIVE YOU A SHORT PRESENTATION TODAY THAT INCLUDES A BUDGET, UH, UPDATE, UH, THE PROPOSED WARRANT AND SEWER RATE INCREASE THAT IS IMPLEMENTED IN THE BUDGET THAT CANDY JUST WENT, UH, OVER.
AND A BRIEF DESCRIPTION OF THE CAPITAL PROGRAM PROJECTS THAT, UH, THIS COMING BUDGET WILL BE COVERING.
FIRST IS THE REVENUE VERSUS, UH, EXPENDITURE, UH, DISCUSSION ON THE NEXT SLIDE, YOU WILL SEE THAT FROM 2018 TO UH, PRESENT, WE WERE ABLE TO DO, UH, THREE RATE INCREASES AND THREE OF THOSE YEARS DID NOT HAVE ANY RATE INCREASES.
ALSO, PLEASE NOTE THAT FOR FISCAL YEAR 2021, THAT RATE INCREASE AND GO INTO EFFECT TILL MARCH AND IN FISCAL YEAR 2022, IT DID NOT TAKE INTO EFFECT UNTIL AUGUST.
IN GENERAL, WE'D LIKE TO DO THESE RATE INCREASES, UH, TO BECOME EFFECTIVE OCTOBER OF THAT FISCAL YEAR.
AND THAT WILL CARRY US USUALLY THROUGH THE BUDGET PROCESS AND THROUGH THE EXPENDITURES AND THE CAPITAL PROGRAM FUNDING IN 2018.
UH, WHEN THE EFFORTS STARTED TO STABILIZE THIS FUND, SINCE IT IS AN ENTERPRISE FUND, OUR JOB IS TO MAKE SURE THAT IT IS SELF-SUFFICIENT.
IN 2018, THAT FUND WAS BASICALLY BORROWING MONEY FROM THE GENERAL FUND IN ORDER TO PAY ITS BILLS.
AND IT HAD A TAB OF ABOUT $54 MILLION THROUGHOUT THE YEARS, UH, FOR THE FIRST TIME IN 2018, YOU CAN SEE WE WERE ABLE TO MAKE ENOUGH MONEY TO COVER OUR EXPENDITURES AND STILL HAVE APPROXIMATELY $1.9 MILLION IN THE PLUS.
UNFORTUNATELY, THIS DID NOT CARRY OVER FOR THE NEXT COUPLE OF YEARS BECAUSE THERE WAS NO RATE INCREASES TO KEEP UP WITH THE EXPENDITURE.
WHAT WE ARE PROPOSING FOR THE 2024 BUDGET, UH, INCLUDES A 7% RATE INCREASE, UH, REVENUE PROJECTION OF 37.5 MILLION, AN EXPENDITURE OF AROUND 36.6 MILLION WITH THE, UH, POSITIVE BALANCE OF $926,000.
ALL THE PROJECTIONS THAT WE ARE LOOKING AT TODAY ARE BASED ON REVENUES THAT WE RECEIVED AS OF JUNE, 2023 AND ACTUAL 2122 REVENUES.
AS FAR AS EXPENDITURES, THESE ARE EXPENDITURE PROJECTIONS BASED ON END OF JUNE, 2023.
PLEASE NOTE THAT THIS REVENUE AND EXPENDITURE PROJECTIONS CAN CHANGE AT ANY TIME.
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WE CAN HAVE AN EMERGENCY TODAY AT THE WATER TREATMENT PLANT, FOR EXAMPLE, THAT CAN COST US HALF A MILLION DOLLARS.WE CAN HAVE A CAVITY ON A SEWER LINE THAT CAN COST US A HUNDRED THOUSAND DOLLARS.
AND THESE ARE ITEMS WE CANNOT SAY, HEY, WE CAN OPPOSE IT UNTIL OCTOBER 1ST STARTS AND THE NEW BUDGET KICKS IN.
SO OUR, OUR BUDGET IS VERY FLUID.
A LITTLE HISTORY ON THE RATE INCREASES.
THE LAST ROW OF THIS SLIDE SHOWS YOU THE STUDY THAT WAS PERFORMED BY WELDON IN 2020 AND THEIR PROJECTIONS OF REQUIRED RATE INCREASES TO SUPPORT THE, UH, OPERATING BUDGET AS WELL AS THE CAPITAL UH, PROGRAM.
SO THEY WERE PROPOSING TO HAVE A 9.8% IN 21, 10 0.1% IN 22, 10% IN 23, AND TO 3.6% IN 24.
IN 21 WE DID A 3% WATER, 12% SEWER.
CAUSE THE SEWER RATES WAS A LESS, A LOT LOWER THAN WHAT THE WATER RATE WAS.
IN 22, WE DID A 7% INSTEAD OF 10.1.
IN 23 WE DID 0% INSTEAD OF 10.
AND THIS YEAR WE ARE PROPOSING A 7% AND THAT WILL BE IMPLEMENTING THE IMPLEMENTED, DEPENDING ON COUNCIL'S DESIRE TO MOVE FORWARD WITH IT OR NOT.
THE ONE THING TO PAY ATTENTION TO IN 2018, THE RATE INCREASE THAT WAS IMPLEMENTED INCLUDED, UH, READY TO SURF FEE, WHICH WAS NOT AVAILABLE FOR SEWER AND AT $5 FOR WATER.
SO THAT WAS THE ITEM THAT HELPED BALANCE THAT 2018, UH, BUDGET YEAR, FISCAL YEAR, UH, SHORT ANALYSIS OF THE WATER AND SEWER RATES CURRENTLY COMPARED TO OTHER CITIES, UH, BASED ON A 5,000 GALLON USAGE PER HOUSEHOLD.
AND ON AVERAGE, UH, HOUSEHOLD OF TWO TO THREE PEOPLE CONSUMES ABOUT 3000 GALLONS OF WATER AND DISCHARGE ABOUT THE SAME ON WASTEWATER.
SO BASED ON POPULATION OF 50,000 TO UH, HUNDRED THOUSAND, UH, THE STATEWIDE AVERAGE IS $81 AND 3 CENTS FOR 5,000 GALLONS OF WATER AND A WASTEWATER SERVICE.
THE CITY OF PORT ARTHUR CURRENTLY IS AT 73.72, WHICH IS ABOUT 11% LOWER THAN THE, UH, STATEWIDE AVERAGE.
IF WE COMPARE OURSELF ON THE 5,000 GALLON RATE TO CITIES IN OUR AREA, WE'RE STILL ABOUT A LITTLE BIT HIGHER THAN THE MIDDLE OF THE GRAPH, BUT WE'RE STILL IN GOOD SHAPE IN TERMS OF WITH WHAT WE COMPARE LIKE TO OTHER, UH, CITIES IN THIS NEIGHBORHOOD.
AND PLEASE NOTE THIS IS, AGAIN, FOR 5,000 GALLONS USAGE.
OH, I DIDN'T CHANGE THOSE TWO SLIDES.
THIS IS THE ONE COMPARING OURSELVES TO CITIES POPULATION 50 TO A HUNDRED THOUSAND, AND THEN COMPARING OURSELVES FOR 5,000 GALLONS USAGE TO SERIES IN THIS AREA.
SO WHAT WILL THE, UH, PROPOSED 7% RATE INCREASE DUE TO THE EXISTING RATES? SO CURRENTLY THE MINIMUM USAGE FEE ALREADY TO SERVE FEE FOR WATER IS $8 AND 35 CENTS.
FOR SEWER, IT'S $9 AND 7 CENTS.
A 7% INCREASE WILL BRING THE WATER TO $8 AND, UH, 93 CENTS.
AND THE SEWER FOR TO $9 70 CENTS.
ON THE PER THOUSAND COST, THE CURRENT RATE IS $5 AND 63 CENTS.
IT'LL BECOME $6 AND 2 CENTS, AND THE SEWER RATE IS $5 AND 63 CENTS.
PLEASE NOTE THAT OUR ORDINANCE HAVE SEVERAL TIERS.
WHEN IT COMES TO RATES, WE HAVE ZERO TO 10,000, 10,001 AND ABOVE.
THIS IS FOR THE FIRST 10,000 GALLONS.
THIS IS HOW THIS RATE WILL BE IMPACTED.
AND THIS IS PURELY FOR INSIDE SIRI LIMIT, UH, CITIZENS.
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THAT 7% INCREASE WILL AFFECT THE, SIR, I HAVE A COUNCILMAN BEFORE YOU, BEFORE YOU MOVE ON.ARE WE READY FOR QUESTIONS RIGHT NOW? I'M READY WHEN Y'ALL ARE READY.
HOW ACCURATE ARE THE, THE METERS THAT'S IN PLACE MEASURING THIS WATER? UH, I KNOW WE GOT A, ARE WE REPLACING, WE STILL STUCK WITH THE, A LARGE NUMBER OF BAD METERS AND WE ARE AVERAGING, ARE WE AVERAGING ON THE LOW SIDE OF MEDIUM OR ON THE HIGH SIDE? WHAT ARE WE DOING? THE LAST BATCH OF METERS THAT WE PULLED OUT OF THE SYSTEM AND TESTED ARE, UH, READING AT ABOUT 90% ACCURACY.
AND RIGHT NOW WE ARE DOING A STUDY ON THE COST OF REPLACING ALL THE METERS THAT WE HAVE IN THE SYSTEM COMPARED TO WHAT REVENUE WILL BE ABLE TO GENERATE.
'CAUSE THERE ARE METERS TODAY THAT CAN READ A HUNDRED PERCENT ACCURACY FOR A LONG TIME BECAUSE THEY'RE NOT MECHANICAL AND WE ARE LOOKING AT COST.
WE ARE ALREADY PUTTING SOME OF THESE METERS IN THE SYSTEM TO TEST THEM TO SEE THEIR ACCURACY AND THE EFFICIENCY AND IF THEY'RE GONNA, YOU KNOW, WITHSTAND THE KIND OF ENVIRONMENT AND WEATHER WE HAVE.
SO WE ARE IN THE PROCESS OF COMING UP TO THE COUNCIL PROBABLY IN THE NEXT BUDGET YEAR AND PRESENTING A PLAN TO UPDATE ALL OUR METERS AND USE NEW TECHNOLOGY THAT WE WON'T LOSE THAT 10%.
BUT CURRENTLY FROM THE DATA WE TESTED, WE ARE READING 90% ACCURACY.
SO WHEN YOU TALK ABOUT LOSING 10%, AND THAT'S NOT ON THE BIG METERS, 'CAUSE THE BIG METERS GET CALIBRATED YEARLY.
WE'RE TALKING ABOUT THE RESIDENTIAL METERS FIVE EIGHT INCH AND ONE INCH.
SO WHEN YOU'RE TALKING ABOUT 10%, WE'RE TALKING ABOUT 10% OF ABOUT 17 MILLION.
SO THAT'S $1.7 MILLION OF REVENUE.
SO HOW LONG'S GONNA TAKE US TO COVER THE COST OF REPLACING ALL THESE METERS TO RECOVER THAT FUND IS WHAT WE'RE GONNA BRING TO YOU TO SHOW YOU THAT ECONOMICALLY IT MAKES SENSE.
ARE WE CALIBRATING THEM IN-HOUSE OR ARE WE SENDING THEM ALL, CONTRACTING THEM OUT? UH, THE LARGE METERS GET, GET CALIBRATED IN PLACE BY A CONTRACTOR.
SO WHEN WE'RE TALKING METERS, FOUR INCHES, EIGHT INCHES, THE INDUSTRIAL METERS, THEY GET CALIBRATED BY CONTRACTORS.
PLEASE, ANY OTHER QUESTIONS AT THIS TIME? MM-HMM.
IF WE DON'T MIND, WE CAN HOLD OUR QUESTIONS TO THE END SO THAT HE CAN GET THROUGH IT AND JUST JOT DOWN OUR NOTES THROUGHOUT THE, UM, THROUGHOUT THE PRESENTATION.
SO THAT 7% INCREASE, HOW WOULD IT AFFECT THE RATES FOR 10,000 TO 50,000 OR 50,000 AND UH, MORE, UH, I DON'T WANNA READ ALL OF THIS, BUT YOU CAN SEE THE IMPACT.
UH, THE RECOMMENDED RATES PER THOUSAND GALLONS IS GONNA GO FROM 5.91 TO $6.32 FOR, UH, 10,000 TO 50,000.
THEN FROM 6.21 TO 6.64 WHEN IT GOES TO 50,000 PLUS.
SO IT'S ALL BASED ON 7% INCREASE ON EVERY ITEM THAT IS, UH, CURRENTLY PRICED IN THE ORDINANCE.
THIS SLIDE REPRESENTS A GOOD, UH, DOLLAR AMOUNT IN TERMS OF HOW MUCH ARE THE CITIZENS HAVE TO PAY IF THEY ARE USING 5,000 GALLONS.
AND IF THE COUNCIL DECIDES TO IMPLEMENT THIS RATE INCREASE.
SO YOUR ADDITIONAL COST TOTAL FOR WATER AND SOURCE SERVICE WILL BE $5 AND 16 CENTS PER MONTH.
IF YOU'RE USING 5,000 GALLONS.
IF YOU'RE USING 2000 GALLONS, THE EXTRA COST IS $2 AND 80 CENTS.
AND THAT'S AGAIN FOR 10,000 AND UNDER INSIDE CITY LIMITS FOR OUR UH, CITIZENS, ONE OF THE ITEMS THAT IS FUNDED BY THIS RATE INCREASE IS OUR CAPITAL PROGRAM.
IN ADDITION TO OUR OPERATING, UH, BUDGET, I'LL BRIEFLY GO OVER THE, UH, PROJECTS THAT ARE LISTED IN THE CAPITAL PROGRAM, STARTING WITH A MILLION DOLLARS FOR LIFT STATIONS.
OUR SANITARY SEWER LIFT STATIONS ARE IN VERY BAD SHAPE.
WE HAVE 50 LIFT STATIONS THAT NEED ATTENTION AND WE'RE TRYING TO DO A LOT OF THIS DESIGN WORK IN-HOUSE TO ELIMINATE ENGINEERING COST AND BE ABLE TO FIX MORE LIFT STATIONS EVERY YEAR.
BUT OUR LIFT STATIONS NEED IMMEDIATE ATTENTION.
THE SAB BEAM PASS COLLECTION SYSTEM, WE HAVE AN AGREEMENT
[00:35:01]
WITH THE T C E Q TO REPLACE SO MANY FEET A YEAR.AND WE HAVE DONE AN AMAZING JOB OUT THERE SO FAR BECAUSE THE NUMBER OF SANITARY SEWER OFF FLOWS AND CALLS FROM THAT AREA HAVE BEEN REDUCED.
AND WE DIDN'T ONLY WORK ON THE SEWER LINES.
WE ARE ALSO WORKING ON THE WASTEWATER TREATMENT PLANT THERE FOR THE FIRST TIME IN MANY YEARS, THAT PLANT IS ACTUALLY DOING ITS JOB AND THAT'S WHY WE HAVE TO SPEND ANOTHER $394,000 AT THAT PLANT IN THIS CURRENT BUDGET YEAR.
THE SANITARY SEWER COLLECTION SYSTEM, THERE'S A MILLION DOLLARS BUDGETED TO BE A CITYWIDE PROJECT.
THIS IS BE, THIS IS BEING DESIGNED RIGHT NOW BY US CITY STAFF AND, UH, WILL BE GOING OUT TO BIDS IF THIS GET APPROVED.
WE ALSO HAVE, UH, WASTEWATER TREATMENT PLANT DE GRID SYSTEM IMPROVEMENTS AT $1.6 MILLION.
AND THAT'S THE SYSTEM THAT'S AT THE HEAD OF THE PLANT TO TAKE ALL THE GRID OUT OF THE WASTE SO IT DOESN'T DAMAGE ALL OUR PUMPS.
THE LEAD AND COPPER PHASE ONE IS, UH, MAINLY A STUDY THAT THE E P A IS FORCING EVERY CITY IN THE UNITED STATES TO DO AND TO ELIMINATE ALL THE LEAD AND COPPER PIPING THAT GOES ALL THE WAY TO THE HOUSE FROM THE CITY MAINS, UH, ELECTRICAL IMPROVEMENTS AT THE WATER TREATMENT PLANT.
AND THAT'S A VERY, VERY IMPORTANT PROJECT FOR US BECAUSE CURRENTLY THE ELECTRIC FEED AT THE WARWICK LAND IS ONE SOURCE AND THE SYSTEM ITSELF IN THE PLANT IS NOT LOOPED.
SO IF WE LOSE A SECTION OF THE PLANT, WE CANNOT POWER THE OTHER SECTION WITHOUT CONTRACTING PEOPLE OUT AND BRINGING IN GENERATORS AND GOING THROUGH A LOT OF TROUBLE.
THIS ACTUALLY HAPPENED JULY OF LAST YEAR, UH, JULY 3RD, RIGHT BEFORE 4TH OF JULY.
AND WE HAD TO BE THERE AT TWO IN THE MORNING TRYING TO GET THIS PLANT TO OPERATE PRIOR TO LOSING PRESSURE CITYWIDE.
AND WE WERE LIKE RIGHT AT THE BRINK FIXING TO ISSUE BOIL WAR NOTICES WHEN WE WERE ABLE TO GET THE PLANT BACK AND RUNNING.
AND IT ALL HAPPENED BECAUSE OF A LIGHTNING STRIKE.
SO THAT'S A PROJECT WE HAVE TO COMPLETE.
THE ATLANTA WAR LINE REPLACEMENT AT $1.5 MILLION IS ANOTHER VERY IMPORTANT PROJECT.
'CAUSE THAT LINE IS IN POOR CONDITION AND IF IT FAILS, THE CITY WILL NOT HAVE WATER.
SO WE ARE PLANNING ON AT LEAST SPENDING 1.5 MILLION ON THAT SECTION OF PIPE.
AND FINALLY WE HAVE THE FIRE HYDRANT REPLACEMENT THAT WE HAVEN'T HAD A FIRE HYDRANT REPLACEMENT PROGRAM IN A LONG TIME.
SO WE HAVE A LOT OF HYDRANTS THAT ARE NOT FUNCTIONING THAT WE HAVE TO FIX AND REPLACE.
THE GOOD NEWS IS $2 MILLION OF THAT WOULD BE PAID THROUGH CASH WHILE THE REST OF THE MONEY WILL BE PAID THROUGH A BOND APPROXIMATELY 5.6 MILLION.
THESE PROJECTS THAT WE ARE PROPOSING TO DO IN THE CAPITAL PROGRAM ARE REALLY A DROP IN THE BUCKET OF WHAT NEEDS TO BE DONE.
WE ALL UNDERSTAND EVERYBODY WHO'S BEEN AT THIS COUNCIL BEFORE OR LIVED IN THIS CITY UNDERSTAND THAT OUR INFRASTRUCTURE HAVE BEEN IGNORED FOR A LONG TIME.
AND IT IS TIME TO MOVE FORWARD WITH IT AND MAKE SURE WE ARE REPAIRING THINGS FASTER THAN THEY ARE FAILING.
MAKE SURE WE ARE CATCHING UP ON MANY YEARS WHERE THIS WORK WAS NOT DONE.
AND THAT'S EASY TO DO BECAUSE ALL OUR INFRASTRUCTURE IS UNDERGROUND.
IT'S NOT LIKE A PARK THAT HAS A SLIDE THAT'S BROKE OR YOU KNOW, A STREET THAT HAS CRACKS ALL OVER AND POTHOLES.
IT'S HIDDEN INFRASTRUCTURE AND IT'S EASY TO MISS AND IGNORE.
BUT WE CAN NO LONGER DO THAT IF WE WANNA CONTINUE AS A CITY TO PROVIDE SERVICES, WATER AND WASTEWATER SERVICES, THAT INFRASTRUCTURE HAVE TO BE REPLACED.
REHABILITATED, WE'RE DOING A GREAT JOB AT THE MAIN WASTEWATER TREATMENT PLANT RIGHT NOW, SPENDING APPROXIMATELY $67 MILLION TO UPDATE IT.
WE'VE DONE 12 LIFT STATIONS IN THE LAST TWO YEARS IN ELECTRICAL REHAB.
TWO OF THEM COMPLETELY ELEVATED STORAGE TANKS ARE BEING REHABILITATED, TWO OF THEM ARE UNDER DESIGN.
THERE'S A LOT OF WORK WE ARE DOING, BUT THERE'S A LOT MORE THAT NEED TO BE DONE AND THERE IS NO WAY TO DO IT WITHOUT FUNDS.
THE FUNDS HAVE TO COME FROM SOMEWHERE AND THIS BEING AN ENTERPRISE FUND, IT NEEDS TO BE SELF-SUFFICIENT.
WE CAN NOT CONTINUE TO BORROW FROM THE GENERAL FUND TO BALANCE BUDGETS.
AND IF YOU ALL HAVE ANY QUESTIONS, I'LL BE MORE THAN HAPPY TO ANSWER THEM.
[00:40:02]
COUNCIL MEMBER DOUCETTE.THANK YOU FOR YOUR PRESENTATION DR.
YOU DO A GOOD JOB OF TELLING US ABOUT THE NEGLECT THAT WE'VE HAD BY NOT DOING TAX.
I MEAN SOME WATER RATE INCREASES.
UH, YOU'VE DONE A PRETTY GOOD JOB OF COMPARING US WITH OTHER CITIES AND, UM, THE THING THAT CONCERNED ME MOST ABOUT THE PRESENTATIONS THAT I HEAR, BUT WHY YOU TIL I UNDERSTAND THE STATE OF OUR CITY, IT'S BEEN THAT WAY FOR QUITE A WHILE AND YOU KEEP SAYING IT AND TOUCHING ON IT AS A BIG DEAL IS IT'S BEEN NEGLECTED FOR SO LONG AND THAT IT NEEDS TO BE FIXED.
I PROBABLY THE LAST WEEK LOOK LIKE EVERY TIME I TURN AROUND THERE'S A NOTICE OF SOMEBODY WATER BEING TURNED OFF.
NOW THAT'S NOW THAT'S TURNING IT OFF TO FIX, UH, WITH ALL THIS HEAT, THESE, THESE LINES ARE POPPING LIKE FIRECRACKERS OUT THERE.
I DON'T THINK NO PLACE IS SACRED, WHICH IS AN INDICATION THAT WE HAVE SERIOUS ISSUES WITH THE UNDERGROUND, BUT THAT HAS RESULTED IN NEGLECT OVER A NUMBER OF YEARS.
SO WE GOING TO FIX THIS, THEN WE NEED TO HAVE THE POST, LIKE YOU SAID, WHERE WE GOT SO MANY LIFTS LIFT STATION, WE ARE GONNA FIX, WE'RE GONNA FIX SO MANY MAINS, WE'RE GONNA REPLACE THIS.
THAT IS THE WAY TO GO AS FAR AS THE UH, GENERAL FUND COVERING THE WALL UTILITY.
YOU ALL, YOU ALL DONE AN EXCELLENT JOB IN THE LAST FIVE, SIX YEARS.
THE 54 MILLION THAT YOU REFERRED TO, THAT'S KIND OF LIKE LONG GONE BECAUSE THAT WAS AT A TIME WHEN IT WAS OKAY JUST TO DO IT AND, AND KEEP DOING IT.
BUT WE REALIZED THAT THAT'S WHY WE WATCHED THAT FUND OUT AND SAID WE DON'T HAVE A DEBT AND WE'RE GOING TO WORK WITH THIS THING FROM NOW ON.
FOR A CITY TO HAVE A EXPENDITURE THAT EXCEEDED THE REVENUE FOR ANY PARTICULAR YEAR IS NOT UNUSUAL.
IT'S NOT UNUSUAL, OKAY? BUT WITH THE PROBLEM WE HAVE WITH OUR PIPES AND INFRASTRUCTURE, THAT IS WHERE WE CAN HELP TO REDUCE THE EXPENDITURE COMING FROM GENERAL FUND TO SUBSIDIZE THAT BY SIMPLY PUTTING MONEY INTO REPLACING THIS, YOU GOTTA FIX THE PROBLEM.
YOU KNOW, YOU TALK ABOUT RAIDS AND WE'VE DONE COMPARISONS OF CITIES, BUT WHAT'S AMAZING AND WHAT CITIZENS REALLY DON'T REALIZE IS THAT WE SHOULD HAVE THE LOWEST WATER RATE IN THE AREA BECAUSE WE HAVE NIE.
I MEAN WE HAVE REFINERIES, WE ARE GETTING OVER A MILLION DOLLARS.
WE GOT OUR BIGGEST WATER CUSTOMER IS CHENE AND THAT THAT MAIN OUT THERE, WE JUST PUT IT OUT THERE A COUPLE YEARS.
IT AIN'T, WE AIN'T WORKING ON IT EVERY DAY.
SO WHAT THAT SAYS IS WE NEED TO FOCUS ON EXACTLY WHAT YOU ARE DOING.
AND THIS LITTLE 40 50% OR $2 $3 RAISE YOU SAY IS SMALL.
AND DO I REALLY WANT TO PUSH IT TO CITIZENS WHEN EVERY DAY I'M TURNING THE WATER OFF BECAUSE WATER IS BEING WASTED.
DO YOU THINK I WANT TO PUSH THIS, THIS TO THEM? IF WE HAVE A LARGE PERCENTAGE OF WATER LOSS AND HOW MUCH IS THIS RAISE GONNA GENERATE THIS 7%? HOW MUCH, BASICALLY HOW MUCH ABOUT HOW MUCH MONEY WILL IT GENERATE FOR UH, ABOUT 2.2 MILLION.
THAT REVENUE NEW COMES IN PROPERLY, BUT WE JUST FINISHED YEAR AND WE GOING TO, AND WE TRANSFERRING MONEY OUT, RIGHT? WE WE TRANSFERRING MONEY OUT THAT I HEAR OUT OF WATER UTILITIES 587,000 BUCKS.
SO, SO YOU KNOW, WE TRANSFERRING MONEY OUT OF IT FOR CAPITAL, YOU KNOW, SO IT'S MAKING MONEY AND ALL OF THIS WATER LOSS, BUT WE WANT TO RAISE THE RATE.
[00:45:01]
THE PROBLEM AND I'VE BEEN HEARING IT FOR YEARS.THIS IS THE FIRST TIME I EVER HEARD SOMEONE TALK ABOUT THE PROBLEM AND HAD A SOLUTION.
I JUST DON'T SEE WHERE THROWING THE BURDEN ON THE CITIZENS WHEN WE WENT SO MANY YEARS NEGLECTING IT.
SO NOW WE GOT A SOLUTION, WHY DON'T WE START FIXING IT? AND LET'S SEE HOW THAT GOES BEFORE WE START RAISING THE RATES.
LIKE I SAID, IF I'M GONNA COMPARE APPLES, I LIKE TO COMPARE APPLES WITH APPLES.
SO IF I'M GONNA TALK ABOUT MY WATER RATES COMPARED TO OTHERS IN THE AREA, I WANNA MAKE SURE THAT I MENTIONED NO, I GOT, I GOT, I GOT PROBABLY A BIGGER CUSTOMER GIVING US WATER PROBLEMS IN THIS CITY IN SOUTHEAST TEXAS WITH CHENE.
AND THEN WE GOT HAVE SIMPLE COMING ONLINE IN ANOTHER COUPLE YEARS.
I DON'T KNOW, BUT YOU KNOW, IT, IT LOOKED BRIGHT FOR WATER UTILITIES.
JUST THAT I THINK WHAT WE GOTTA DO IS STOP ALL THESE BREAKS THAT'S HAPPENING AND I THINK YOU ALL GOT THE SOLUTION TO IT.
SO, SO WHAT IF THE GENERAL FUND GOT EAT IT FOR A COUPLE YEARS BECAUSE WE NEGLECTED IT.
WHEN ARE WE GOING TO, WHEN ARE WE GONNA ASSUME RESPONSIBILITY FOR OURSELVES AS OPPOSED TO TURNING TO CITIZENS TO FIX SOMETHING THAT WE DID NOT DO? YOU KNOW, SO, OKAY, COUNCILMAN, LET ME ADDRESS YOUR, UH, COMMENTS IF YOU DON'T MIND.
FIRST OF ALL, THE NEGLECT WAS PROBABLY OVER 20 YEARS.
THIS IS NOT LIKE A NEGLECT FOR TWO, THREE YEARS ON INFRASTRUCTURE.
SECOND OF ALL, BY NO WAY THAT THAT NEGLECT WAS, THE CALL WAS CAUSED BY ANY COUNCIL OR MAYOR THAT WERE IN CHARGE AT THE TIME.
IN MY OPINION, THE NEGLECT WAS BY THE PEOPLE WHO WERE IN CHARGE WHO DID NOT BRING THESE ISSUES TO THE COUNCIL.
AND THAT'S WHAT WE ARE DOING TODAY AND THAT'S WHAT WE ARE TRYING TO LET YOU ALL KNOW.
AGAIN, IT'S A COUNCIL DECISION, NOT A UTILITIES DECISION.
SECONDLY, DURING THOSE YEARS OF NEGLECT, THEY WERE ALSO AS MANY YEARS OF NO RATE INCREASES.
THERE WERE ACTUALLY YEARS WHERE THE CITIZENS OF PORT ARTHUR DIDN'T EVEN PAY FOR A READY TO SURF FEE ON WATER FOR SEVEN YEARS IN A ROW ON SEWER FOR SIX YEARS IN A ROW.
LET ME PLEASE FINISH, I UNDERSTAND YOUR POINT EXACTLY WHAT YOU'RE SAYING, BUT THERE WERE NO RATE INCREASES FOR MANY, MANY, MANY YEARS AS WELL.
AND THAT CAUSED THE NEGLECT, THEY NEGLECTED THE SYSTEM 'CAUSE THEY DIDN'T HAVE THE MONEY TO FIX IT.
I UNDERSTOOD YOUR PRESENTATION.
IT WAS VERY CLEAR, JUST LIKE YOU'RE DEFENDING A RATE INCREASE.
ALL I DID WAS MENTION SOME THINGS THAT YOU FAILED TO MENTION, LIKE THE MONEY FROM CHENE, LIKE HOW LONG IT WENT OFF THE FACT THAT IF IT DIDN'T GET BALANCED, IF IT'S WE WORKING TO FIX IT, WE'RE GONNA FIX SOME OF THIS.
WE'RE GONNA LOWER THE WATER LOSS, WE'RE GOING TO GENERATE MORE FUNDS AND WE KEEP GOING IN THE DIRECTION WE ARE GOING, IT CAN PAY FOR ITSELF.
BUT YOU KNOW, I'M NOT, I'M NOT TALKING ABOUT THE PAST.
I MEAN, YES, IT WAS NEGLECTED, BUT THAT'S THE PAST.
I CAN'T DO NOTHING ABOUT THAT.
OKAY? BUT WE HAVE TO MOVE FROM HERE AND WHAT I'M SAYING NOW IS THE BIGGEST PROBLEM I SEE WITH WATER UTILITY IS WE LOSING TOO MUCH WATER.
THESE LINES ARE POPPING LIKE FIRECRACKERS YOU HAVE JUST PRESENTED, GAVE US A PRESENTATION THAT ADDRESSED THAT.
BUT WHAT I'M SAYING IS WE COULD RAISE THE RATE THEY KEEP POPPING, LIKE THEY POPPING.
WE AIN'T GOING NOWHERE BUT SPENDING OUR WHEELS.
SO IT'S JUST THAT I UNDERSTAND YOUR PRESENTATION, I HEARD WHAT I NEED TO HEAR.
IT'S JUST THAT THERE'S ANOTHER SIDE TO THIS THAT I WANNA MAKE SURE CITIZENS AND EVERYBODY ELSE UNDERSTAND.
AND IF I SAY SOMETHING THAT IS NOT CORRECT, PLEASE CORRECT ME BECAUSE, YOU KNOW, ADDRESS YOU.
LEMME POINTS COUNCILMAN, THIS IS NOT ABOUT CORRECTING.
I MEAN, I MEAN MY, MY JOB IS TO MAKE SURE AS A PROFESSIONAL IN THIS BUSINESS TO PROVIDE YOU WHAT I BELIEVE IS THE CORRECT INFORMATION FOR YOU ALL TO MAKE THE DECISIONS YOU SEE.
[00:50:01]
BUT LET ME ADDRESS THE REST OF YOUR POINTS THEN WE CAN, UH, GO BACK TO THE DISCUSSION.SHANIE, OUR PROJECTED REVENUE FOR 2000 FOR THIS YEAR IS $35 MILLION.
CHEN'S REVENUE FROM IT IS AROUND SIX TO 7 MILLION.
SO NIE DOES NOT COVER A LARGE PORTION OF OUR REVENUE.
THE INDUSTRIAL, UH, REVENUE THAT YOU'RE TALKING ABOUT IN THE LAST YEAR WAS APPROXIMATELY 1.9 MILLION.
SO, AND ALL THOSE RATES WILL BE ALSO IMPACTED WITH A RATE INCREASE.
THE SOLUTION WE ARE GIVING YOU TO START SOLVING THIS PROBLEM IS A DROP IN THE BUCKET OF WHAT NEEDS TO BE DONE IF WE REALLY WANNA HAVE A BIG IMPACT ON THESE WATER LEAKS AND THAT'S THE DESIRE OF THE COUNCIL.
WE HAVE 57 WATER LINES DESIGNED, READY TO GO OUT FOR BIDS.
THEY'RE GONNA COST $30 MILLION TO FIX DR.
DO WE KEEP GOING BACK? WE'RE GONNA CUT IT SHORT BECAUSE EVERY TIME I SAY SOMETHING YOU SAY SOMETHING DIFFERENT.
I HEARD YOU VERY CLEAR WITH YOUR PRESENTATION WHEN I SPOKE.
SO WE JUST KEEP GOING AROUND OUT AND WE GOT OTHER THINGS TO DO AND OTHER THINGS TO SAY, OKAY, BUT SHANIA IT, IT, IT, I JUST MENTIONED THE FACT BECAUSE WE, WE GOT SOMETHING THAT OTHER CITIES DIDN'T HAVE.
AND SO WHEN YOU DO COMPARISONS, I WANT CITIZENS TO KNOW THAT ALL YOU COMPARING RIGHT? WE GOT SOMEBODY HELPING US THAT THEY DON'T HAVE WE GOT THIS ADDITIONAL INCOME NOW.
WHEN I SPEAK I'M ONLY BRINGING SOMETHING.
YOU FEEL I DIDN'T, I DON'T QUESTION WHAT YOU SAY AND NOW THAT I DISPUTE I UNDERSTAND DISPUTE.
WE'RE GONNA GO AHEAD AND MOVE ON TO THE NEXT POINT.
TOME, THANK YOU SO MUCH FOR THIS PRESENTATION.
UM, IT REALLY TOUCHED ON SOME THINGS THAT MY CONSTITUENTS ARE CONCERNED WITH.
NAMELY, WHAT IS THE WATER BILL GONNA LOOK LIKE? SO I APPRECIATE, UH, THE DETAIL THAT YOU WENT INTO FOR THAT.
UM, I'D LIKE TO KNOW THOUGH, UM, ON PAGE 14, HOLD, HOLD ON ONE MOMENT.
I'M SORRY COUNCILWOMAN, I APOLOGIZE TO INTERRUPT YOU, BUT WE'VE LOST QUORUM SO HOLD ON ONE MOMENT.
YEAH, YOU MIGHT AS WELL RECESS UNTIL HE COMES BACK.
IS HE COMING BACK? WHO THE HECK? I DON'T KNOW.
WELL, YEAH, WELL YOU KNOW THAT.
OKAY, THANK YOU COUNCILMAN BECKHAM.
UM, MY QUESTION IS, UM, ON PAGE 14, WHEN YOU HAVE THE PROPOSED CAPITAL IMPROVEMENTS PROGRAM, UM, KINDA LINED OUT BY YEAR, WHAT IS GONNA BE THE IMPACT ON THAT 30% WATER LOSS THAT WE'RE HAVING? UH, WHEN ALL OF THESE PROJECTS ARE PUT INTO PLAY, THERE IS NO WAY TO MEASURE AND TELL YOU IF I DO THIS PROJECT, WE ARE GONNA DROP THAT TO 10%.
FOR EXAMPLE, THE STATEWIDE AVERAGE ON WEAR LOSS IS 15% AND THAT INCLUDES CITIES THAT ARE BRAND NEW THAT YOU KNOW, HAVE NO LOSS COMPARED TO CITIES LIKE US.
UH, WE SPAN OVER 144 SQUARE MILES.
SO THAT TELLS YOU HOW MUCH INFRASTRUCTURE WE HAVE AND HOW MUCH OF IT WE HAVE TO ADDRESS.
IF WE WANT AN IMMEDIATE IMPACT ON THAT WAR LOSS, WE WANT TO DROP IT RIGHT NOW.
WE'D GO AND BORROW $30 MILLION, PUT THIS JOB OUT ON, ON THE MARKET AND FINISH 57 WAR LINES.
BUT HOW ARE WE GONNA PAY FOR IT? I MEAN, WE'RE HAVING A STRUGGLE COSTING OUR CITIZENS $5 AND 42 CENTS EVERY MONTH EXTRA FOR A 7% INCREASE TO GO BORROW $30 MILLION.
WE'RE GONNA NEED TO MAKE AT LEAST AN EXTRA 30, UH, AN EXTRA 3 MILLION A YEAR TO BE ABLE TO PAY IT BACK.
SO YOU'RE TALKING ABOUT 10% A HUMONGOUS RATE INCREASE TO ACTUALLY ENGAGE IN THAT.
AND THAT'S WHY WE'RE TRYING TO DO THIS IN BITS AND PIECES A LITTLE BIT HERE, A LITTLE BIT THERE.
NO CITY IS GONNA BE ABLE TO BE IN OUR CONDITION AND COME AND FIX THE PROBLEM IN TWO YEARS.
THIS IS A 10 TO 20 YEAR PROGRAM TO GET WHERE WE NEED TO BE WITHOUT STRONGLY AND IMMEDIATELY IMPACTING OUR CITIZENS.
AND, AND, AND THE CHENE PLAYS A BIG ROLE IN THIS.
NO DOUBT IF CHENE DIDN'T COME INTO THE PICTURE, OUR RATES TODAY WILL BE OVER 30% OF WHAT THEY ARE.
SO THAT REVENUE IS HIGHLY, HIGHLY, YOU KNOW, UH, NEEDED AND IS PROTECTING OUR RATES.
SEMPRA IS NOT GONNA HAVE THAT IMPACT 'CAUSE THEIR YEARLY USAGE IS NOT EVEN $200,000 ONCE THEY ARE CONSTRUCTED AND COMPLETED.
SO, LIKE I SAID, THE REST OF THE INDUSTRY IS AROUND 1.9 MILLION A YEAR.
COUNCIL LEWIS, COUNCIL MEMBER LEWIS.
[00:55:01]
OH, BRIEFLY A CITY ATTORNEY.AN UPDATE ON SOMETHING RIGHT QUICK WHEN WE ARE BELOW QUORUM, IT'S, THIS IS A WORKSHOP.
IT'S, IT IS, IT IS NOT REQUIRED TO HAVE A QUORUM JUST, JUST TO DO A WORKSHOP.
YOU CAN'T HAVE ANY DISCUSSIONS UNLESS YOU HAVE A QUORUM.
UH, SO IF EVERYBODY, YOU KNOW, IF YOU HAVE TO STEP OUT, WE'LL JUST HAVE TO PAUSE.
UH, HERE I UNDERSTAND WHAT, YOU KNOW, THE, THIS INCREASE IS GOING TO BE IMPACTING THE, THE CITIZENS AND THE, THE NEGLECT OR LACK OF FUNDING IN THE PAST.
IN ORDER FOR US TO GET A HANDLE ON, ON THIS, WE HAVE TO WORK AHEAD OF THE CURVE.
IF WE DON'T PLAN AND WORK AHEAD OF THE CURVE, IF WE WAIT, THEN THAT'S GONNA BE AN ADDITIONAL WAY BECAUSE WE GOT THE PLAN TO BRING IN REVENUE TO TAKE CARE A PROBLEM.
RIGHT NOW ALL YOU'RE GOING GOING TO BE DOING IS AGING THE PROBLEM AND IT'S GETTING WORSE.
SO, AND THE PUBLIC HEARINGS AND, AND THESE DISCUSSIONS HERE, WE'LL LET THE SIT, WE ARE LETTING THE CITIZENS KNOW WHAT'S OUT THERE AND IT'S NEED TO BE TAKEN CARE OF.
AND IT'S URGENT BECAUSE WE GOT TREATED WATER LOSSES 30%.
I THINK I HEARD COUNCILMAN DO SAY THAT STATEWIDE IS WHAT, THREE 15%? 3%.
AND WE, WE ARE OUT HERE, WHAT, 30 SOME OR SOMEWHERE.
WE HAVE TO BITE THE BULLET AND TAKE CARE OF THESE THINGS.
YES, IT'S GOING BE AN, LIKE WE, I HEARD THE SAME THING I WAS INVOLVED WITH, WITH THE READY TO SERVE.
SOME PEOPLE HIT THE CEILING, YOU KNOW, BUT IT WAS NECESSARY.
AND THAT'S, AND IF WE HAD NOT IMPLEMENTED THAT $5 READY TO SERVE, JUST THINK HOW, HOW BIG A, A PROBLEM WE HAVE TODAY.
YOU KNOW, AND, AND IT'S GOING TO TAKE TIME AND WE WANT TO WORK IT CONTINUOUSLY AND CONTINUOUSLY AND FIND SOURCES OF REVENUE, FIND GRANTS.
THAT'S WHY I WANTED, I'VE BEEN TALKING TO THE CITY MANAGER.
WE NEED TO SET, HE NEEDS TO SET UP COUNCIL NEED TO GIVE HIM THE TOOLS TO SET UP A GRANT WRITING DEPARTMENT THAT FOCUS ON GRANTS ALL THE TIME.
WE NEED A GRANT WRITING DEPARTMENT COUNCIL NEED TO FOCUS ON THAT.
GIVE THE CITY MANAGER THE TOOLS THAT HE NEED TO DO THESE THINGS.
SO YES, I'M, I'M CONCERNED ABOUT RAISING A RAISE ON PEOPLE WITH FIXED INCOME, BUT IT IS A MUST DO.
AND, AND, AND THE PEOPLE GOT HAVE AN OPPORTUNITY AT THE PUBLIC HEARING BEFORE WE ADOPT A BUDGET TO HAVE THEIR COMMENTS.
BUT ONCE THEY, ONCE THEY UNDERSTAND, THEY, THEY GENERALLY COME ALONG WITH YOU, UH, READY TO SERVE FEE IS GENERATING APPROXIMATELY 3.6 MILLION A YEAR.
8.6 MILLION, THREE POINT ESTIMATED NUMBER.
SO THAT NUMBER WAS VERY, VERY HELPFUL IN 18 TO BRING US UP WHERE WE NEED TO BE.
FOR THE ATLANTA WATERLINE REPLACEMENT, YOU SAID THIS WAS SOMETHING THAT IS IN THE PROCESS OF BEING REPAIRED ALREADY OR IT IS PROPOSED TO BE NO MA'AM.
IT'S PROPOSED TO BE REPLACED IN THIS BUDGET HERE.
IF IT'S ONE OF THE 57 WATER LINES THAT WERE DESIGNED.
SO WE PULL OUT CAN YOU COME TO THE MIC PLEASE? ATLANTA WATER LINE IS ONE OF THE 57 WATER LINES THAT WAS, IS DESIGNED AND SHOVEL READY.
UH, IT IS A PRIMARY DISTRIBUTION LINE COMING FROM THE WATER PLANT AND IF WE LOSE IT, WE BASICALLY LOSE WATER TO THE CITY.
SO IT'S CRITICAL THAT WE START REPLACING IT AND IT'S IN REALLY BAD SHAPE.
AND, AND THE FUND PROPOSED TO REPLACE IT IS NOT TO REPLACE THE ENTIRE LINE.
WE PUT IN THE BUDGET WHAT WE CAN AFFORD WITH THIS RATE INCREASE TO AT LEAST FIX THE SECTION THAT IS IN THE WORST CONDITION.
NOW THE ONE SECTION IS THE THREE AND A HALF MILLION.
THE ONE SECTION IS 1.7 MILLION, 1.5 MILLION.
AND NEXT YEAR WE'RE PROPOSING ANOTHER 2 MILLION.
YES, I WAS, WE'RE TRYING TO FIX IT IN SECTION NOW.
SO, UM, THAT'S A PART OF THAT 30 MILLION.
OUR GOAL, PART OF THE 57 WATER LINES.
UM, THE NEXT QUESTION I HAVE IS REGARDING THE WATER RATES, COMMERCIAL WATER RATES SPECIFICALLY AT SEVERAL APARTMENT COMPLEXES
[01:00:01]
THROUGHOUT THE CITY.SO WHEN WE LOOKED AT OUR AVERAGE RATE, IT WAS, I'LL JUST SAY $73 ON AVERAGE.
AND THAT'S AT THE 2000 GALLONS.
SO LET'S SAY AT THE 5,000 GALLONS.
AND THAT WAS WITH TWO TO THREE PEOPLE ON AVERAGE LIVING IN, IN A HOUSEHOLD, A HOUSE.
UM, SEVERAL, UM, RESIDENTS ARE NOT RECEIVING A WATER BILL OF AN AVERAGE $73 A MONTH WITH TWO TO THREE PEOPLE IN THEIR HOUSE.
AND AN AVERAGE COULD BE $75 TO $150 FOR ONE OR TWO PEOPLE LIVING IN A SMALL APARTMENT OR IN A TOWNHOUSE.
AND THE AMOUNT OF GALLONS THAT THEY'RE USED IS' SHOWN BECAUSE MOST RESIDENTS LIVING IN AN APARTMENT COMPLEX DON'T EVEN RECEIVE A BILL UNLESS IT'S REQUESTED.
WHICH WE KNOW THROUGH THE STATE THAT SOMETHING THAT'S REQUIRED.
HOWEVER, I JUST WANT TO MAKE SURE I'M FOLLOWING IT CORRECTLY.
OUR CLIENT IS THE COMPLEX AND THEN THE COMPLEX DISPERSES IT THROUGH TO THE TENANTS, RIGHT? CORRECT.
SO THERE'S SO MANY OF THESE WATER LEAKS THAT THE PROPERTY OWNERS ARE NOT TAKING CARE OF AND CONTINUOUSLY PASSING IT TO THE TENANTS.
HOW ARE WE TO HOLD OUR CLIENTS? I GUESS HOW ARE WE TO HOLD OUR CUSTOMERS RESPONSIBLE FOR MAINTAINING THEIR WATER LINES THE SAME AS WE WOULD A RESIDENTIAL, YOU KNOW, PROPERTY.
THEIR WATER'S GONNA JUST CONTINUE TO INCREASE, RIGHT? THE THE RATE, THE THE COST IS INCREASE AND THEN WHEN THEY DON'T PAY THE BILL, THEY CUT IT OFF.
WELL, THAT'S NOT HAP YOU KNOW, THE, THE SAME FOR THE COMPLEXES.
AND THEN THEY'RE CONTINUOUSLY INCREASING AND THEN THEY GET A NOTICE TO VACATE AS, AS A UTILITIES.
IF THERE IS A LEAK THAT'S IMPACTING OUR PRESSURE IN OUR SYSTEM.
WE HAVE THE AUTHORITY AND THE ABILITY TO GO SHUT OFF THAT METER TO PREVENT THAT FROM IMPACTING THE ENTIRE CITY AS FAR AS AN INTERNAL LEAK ON AN APARTMENT COMPLEX.
AND CAN THE CITY GET INVOLVED? I THINK THAT'S MORE A QUESTION TO LEGAL THAN IT IS TO US.
BUT I UNDERSTAND YOUR POINT THAT, THAT THE OWNERS OF THESE COMPLEXES ARE TRANSFERRING THESE BILLS TO THE RENTERS IN THESE APARTMENTS IN A DIFFERENT FORMAT THAN WE ARE BILLING THEM.
BUT ONE OF THE THINGS WE DID WITH THE APARTMENT COMPLEXES, UH, 'CAUSE OUR CITIZENS WHO PAY TAXES HERE OWNS HOMES WHO ARE BUYING HOMES ARE PAYING THAT READY TO SURF FEE.
AND IT'S NOT FAIR FOR THEM TO PAY IT WHEN SOMEBODY IS JUST A TRANSIENT THROUGH HERE.
A LOT OF TIMES LIVING IN AN APARTMENT, NOT PAYING IT.
SO WE MODIFIED THE ORDINANCE FEW YEARS AGO TO WHERE IF YOU HAVE A HUNDRED APARTMENTS COMPLEX, 75% OF THEM ARE PAYING A MINIMUM USAGE FEE OR ALREADY TO SERVE FEE, ASSUMING 25% VACANCIES.
SO WE DID TRANSFER THAT COST TO THE APARTMENT RENTERS AS WELL.
OH, IT'S DEFINITELY BEEN TRANSFERRED.
BUT ADDITIONAL FEES ARE ALSO BEING TRANSFERRED UP TO, I'VE SEEN ONE UP TO ALMOST FOUR DIFFERENT SERVICE FEES.
THAT'S, THAT'S SOMETHING THAT PROBABLY LEGAL CAN ANSWER BETTER THAN WE CAN BECAUSE IT'S, IT'S NOT A MATTER I'M INVOLVED IN, WE KNOW ON THE WATER.
SO, SO I DO WANT, THAT'S ONE OF MY QUESTIONS.
HOW ARE WE HOLDING THAT CUSTOMER, THAT COMMERCIAL CUSTOMER ACCOUNTABLE FOR MAINTAINING THEIR WATER LINES THE SAME AS WE WOULD FOR A RESIDENTIAL CUSTOMER BECAUSE THEY'LL, WE'LL GO AND SHUT 'EM OFF.
I DON'T KNOW IF IT'S, YOU KNOW, THE PROBLEM, ANSWER THAT QUESTION LAST, I WON'T TELL YOU WHICH BANK, BUT LAST WEEK THERE WAS A LARGE BANK BUILDING IN THE CITY THAT HAD A MAJOR LEAK AND WE HAD TO SHUT 'EM OFF.
I MEAN IT SHUT THE WATER OFF TO ONE FEDERAL AGENCY.
I, IT WE NOTIFIED THE OWNER TOLD HIM THAT THE LEAK IS CAUSING A PRESSURE LOSS IN THE AREA AND WE GAVE HIM A COUPLE HOURS TO GET A PLUMBER ON SITE AND THEN WE SHUT THE WATER OFF TO THE BUILDING.
BUT IT HAS TO BE A LEAK THAT ACTUALLY, AS DR.
TOME SAID IT, IT WAS IMPACTING THE, THE AREA WITH LOW WATER PRESSURE.
SO, AND YOU KNOW, IT, IT, IT'S LOST WATER, BUT IT DOES GO THROUGH, IT WAS GOING THROUGH THE METER.
I MEAN THE METER WAS MOVING QUITE RAPIDLY 'CAUSE IT WAS A SIX INCH WATER LINE THAT HAD A PRETTY BAD FAILURE IN INSIDE THE BANK PROPERTY.
[01:05:01]
SO NOW IT'S NOT THE TIME FOR THAT, BUT I DO WANT TO GET WITH YOU BECAUSE WE NEED TO FIGURE THAT PART OUT TOO.BECAUSE IT IS GOING TO TRANSFER REGARDLESS OF HOW WE ARE GOING TO, HOW COUNCIL CHOOSES TO PAY FOR THE COST FOR THESE REPAIRS WE NEED, IT'S GOING TO AFFECT NOT ONLY THE HOMEOWNERS IN OUR COMMUNITY.
UM, MR. BURTON, YOU, YOU, YOU'RE CORRECT.
AND I THINK AS WE CONTINUE TO MAKE PROGRESS, ONE OF THE THINGS THAT WE NEED TO LOOK AT IN THE NEW FINANCIAL UNITS HAS NOTHING TO DO WITH THE BUDGET, IS A RENTAL ORDINANCE WHERE EACH PROPERTY, EACH APARTMENT, EITHER ON AN ANNUAL BASIS OR ON A MONTHLY BASIS BEFORE YOU RENT A HOUSE OUT, IT SHOULD BE INSPECTED BY THE CITY.
BECAUSE SEVERAL PEOPLE HAVE HUNDREDS OF HOUSES OUT THERE.
YOU KNOW, WHEN A GUY TOLD ME, I WAS JUST GOING THROUGH, UM, T S E IN, IN, IN, IN, IN, UM, IN HOUSTON AND HE SAID, OH, I'M FROM SUCH A NEIGHBORING CITY.
WE HAVE FIVE RENTAL HOUSES AND WE ONLY COME TO PORT ARTHUR TO DO THE WORK AT NIGHTS.
SO THEY USE PORT ARTHUR TO MAKE REV TO COLLECT REVENUE, BUT THE DILAPIDATED, DILAPIDATED NATURE AND APPEARANCE REMAINS IN PORT ARTHUR.
AND THEY DON'T BRING IT TO THE NEIGHBORING CITY THAT THEY LIVE IN.
SO WE NEED TO HAVE A RENTAL ORDINANCE AND BE VERY STRICT ON THE RENTAL ORDINANCE.
YOU KNOW, TO THE POINT WHERE WE CAN EMPLOY TWO OR THREE OR FOUR MORE CODE ENFORCEMENT OFFICERS.
BUT YOU HIT THEM IN THE POCKET.
YOU HIT THE RENTERS IN THE POCKET WHERE IT HURTS, BUT IT IMPROVES THE IMAGE OF OUR CITY.
AND WE CAN ADDRESS THINGS LIKE THIS AS WELL.
WE JUST WANT TO MAKE SURE THAT WE ARE HOLDING THOSE, UM, THOSE DECISION MAKERS ACCOUNTABLE TO BE FAIR TO ALL OF OUR RESIDENTS, SPECIFICALLY WHEN WE'RE CHARGING THEM ASTRONOMICAL COST FOR A NECESSITY, AN ABSOLUTE NECESSITY.
WE CANNOT LIVE WITHOUT CLEAN WATER.
IT DID, DID YOU HAVE ANOTHER QUESTION FOR IT? YEAH.
WELL, ARE YOU, ARE WE FINISHED WITH THIS PRESENTATION? IF YOU ALL ARE DONE WITH QUESTIONS, WE ARE FINISHED.
I'D LIKE TO CLOSE WITH ONE LAST THING IF YOU, Y'ALL DON'T, UH, OH, THERE WERE SOME, I DID HAVE SOME OTHER LIGHTS, BUT WERE YOU DONE WITH YOUR PRESENTATION FOR THIS ONE? UH, I HAVE TO, I WANNA CLOSE WITH A FEW STATEMENTS IF YOU DON'T MIND.
UH, COUNCILMAN LEWIS WAS YOUR QUESTION FOR DR.
I'LL, I'LL ADDRESS THE QUESTION AFTER HE CLOSED.
LET ME CLOSE BY SAYING THAT UTILITIES IS A ENTERPRISE FUND THAT IS REGULATED BY THE STATE AND THE FEDERAL GOVERNMENT.
EVERYTHING WE DO HAS TO BE DONE BY THEIR RULES AND REGULATIONS.
UH, WE HAVE TO MEET THEIR PERMIT LIMITS.
WE HAVE TO REPORT UNAUTHORIZED SANITARY SEW DISCHARGES.
AND THESE AGENCIES HAVE ALL THE POWER IN THE WORLD TO COME DOWN AND MAKE US DO IT, VERSUS US DOING IT AT OUR OWN PACE AT WHAT WE CAN AFFORD AND MAKE THIS WORK FOR OUR CITIZENS WITHOUT STRONGLY IMPACTING THEM.
AND OUR NUMBER ONE GOAL AS A UTILITY IS TO PROTECT PUBLIC HEALTH AND SAFETY, PERIOD.
THAT'S WHY WE WORK 24 HOURS A DAY, SEVEN DAYS A WEEK, 365 DAYS A YEAR.
OUR NUMBER ONE GOAL IS TO PROTECT PUBLIC HEALTH AND SAFETY.
AND IT'S IMPOSSIBLE TO DO THAT WITHOUT ADDRESSING OUR INFRASTRUCTURE NEEDS.
WE HAVE TO ADDRESS THE INFRASTRUCTURE NEEDS TO PROTECT PUBLIC HEALTH AND SAFETY.
WE CANNOT DISCHARGE WASTEWATER IN OUR WATERWAYS.
WE CANNOT NOT HAVE PRESSURIZED SYSTEM WITH CLEAN WATER FOR CONSUMPTION.
THE APARTMENT COMPLEXES, BEFORE WE DO GARBAGE PICKUP, ARE THERE RATES, ARE WE DISCOUNTING RATES TO THOSE PEOPLE? I, I DIDN'T UNDERSTAND YOUR QUESTION, COUNSEL.
THE, THE, THE APARTMENT COMPLEXES THAT WE PICK UP, GARBAGE, ARE THERE RATE, ARE WE DISCOUNTED ANY PICKUP GARBAGE PICKUPS TO THOSE APARTMENT COMPLEX? AND IF YOU ARE, WHY ARE YOU DOING IT? UH, OFF THE TOP OF MY MEMORY, THE ORDINANCE THAT WE HAVE ON COLLECTIONS, I BELIEVE THE MORE NUMBER OF
[01:10:01]
CANS YOU HAVE, YOUR RATE GOES DOWN.BUT I'M NOT READY TO ANSWER THIS QUESTION WITH DATA TODAY.
WE NEED TO GET THE INFORMATION AND GET IT BACK TO US.
IT'S NO PROBLEM THAT, UH, A LOT OF THESE WATER LEAKS, ARE THEY OWNED PRIVATELY HOME PROPERTIES, OR DO WE HAVE ANY IDEA HOW MANY LEAKS ARE ON, ON, ON PRIVATE PROPERTY FAR AS THE RESIDENTS, HOMEOWNERS, I'LL GIVE THAT'S TOLERATING THESE LEAKS.
DO YOU HAVE, DO Y'ALL NOTE THAT WHEN YOU SEE THAT? WE DEFINITELY NOTED, I'LL GIVE YOU AN EXAMPLE.
LAST MONTH, THE WATER DIVISION RECEIVED APPROXIMATELY 430 CALLS FOR SERVICE.
SOME OF THEM WERE, SOME OF THEM WERE PROPERTY LEAKS, SOME OF THEM WERE LEAKS.
WE HAD TO FIX FIRE HYDRANTS AND SO ON SO FORTH.
BUT THAT'S THE VOLUME OF CALLS WE GET EVERY MONTH.
AND IF IT IS A, A LEAK ON THE CUSTOMER SIDE, WE NOTED WE LEAVE THEM A ON THE FLOOR.
SO WHEN IT'S ON THE, WHEN IT'S ON THE CUSTOMER SIDE, THAT'S ON THEM.
ANYTHING A MORE THAN A FOOT FROM THE METER ON THE CUSTOMER SIDE BELONGS TO THE CUSTOMER.
IS A METER BELONG TO THE CUSTOMER.
AND YOU'LL FIND A LOT OF THOSE, THERE'S BEEN ONGOING LEAKS.
THE BE THEY'RE PAYING FOR IT AND WE'RE PAYING FOR THE CHEMICALS AND WHAT HAVE YOU.
WHAT I'M LEADING TO, WE DO A LOT OF FAVORS FOR INDUSTRY ON THE, UNDER THE 4 8 4 A CORPORATIONS.
WE GIVE THEM GRANTS AND WE, YOU KNOW, UH, THOSE KIND OF THINGS.
WHAT I'VE BEEN INTERESTED IN WANTING TO LOOK INTO ALL THESE PRIVATE PROPERTIES, HOMEOWNERS GOT COMMODES LEAKING, GOT LEAKY, LEAKY FAUCETS AND WHAT HAVE YOU, AND THEY'LL BUILD THIS IS COME SOMEWHAT HIGHER.
WHAT I WOULD LIKE TO SEE DONE, AND I'M GONNA BE TALKING TO, UH, UH, E D C ABOUT IT, GIVE, GIVE A GRANT TO THESE HOMEOWNERS TO UPGRADE THEIR WATER ON THEIR LAND FROM THAT OUTPUT OF THE METER.
WE DO ALL THESE OTHER THINGS YOU WANT, YOU GOTTA COMMENT OR SOMETHING.
I, WHEN YOU FINISH, WE GOT ALL OF THESE GRANTS THAT WE GIVE INDUSTRY, AND THEN WE DON'T DO ENOUGH OF THE HOMEOWNERS THAT'S PAYING THESE SALES TAX.
AND WE HAVEN'T DONE ANYTHING FOR SMALL BUSINESSES.
AND THAT'S SOMETHING ELSE WE'LL BE WORKING ON.
THE, THE LEAD AND COPPER RULE COMING OUT OF THE E P A, THERE'S, UH, IN THE BUDGET, I DON'T REMEMBER HOW MUCH WHAT YOU, WHAT YOU CALL IT, 500,000.
THERE'S 500,000 IN THIS CAPITAL YEAR'S BUDGET FOR LEAD AND COPPER.
THIS IS A MANDATE THAT HAS BEEN ISSUED BY THE FEDERAL GOVERNMENT.
EVERY CITY HAS TO DO A, A STUDY OF HOW MUCH, UH, AN INVENTORY ACTUALLY BY STREET ADDRESS IF WE'RE LEAD AND COPPER.
LIKE IF WE, I MEAN, WE PROBABLY STILL HAVE A COUPLE OF LEAD SERVICE LINES OUT THERE.
WE REPLACE THEM IMMEDIATELY IF WE FIND THEM.
THAT'S THE LINE FROM THE MAIN TO THE METER.
BUT UNDER THE LEAD AND COPPER RULE, ANYTHING THAT WAS SOLDERED BEFORE ABOUT 1990, THE LEAD CONTENT IS TOO HIGH.
SO THE LEAD AND COPPER RULE INCLUDES THAT THE SOLDER JOINT AND THE E P A HAS MANDATED THAT THE CITY HAS TO REPLACE FROM THE WATER MAIN TO THE FACE OF THE HOUSE.
WE HAVE PUT IN FOR A 50 MILLION, $53 MILLION GRANT, I THINK.
IT'S A 50 50 WITH A ZERO LONG, I THINK IT'S 30 YEAR ZERO INTEREST LOAN FOR THE 50% WE HAVE TO PAY.
BUT UNTIL WE DO THE INVENTORY, WE BASICALLY TOOK EVERYTHING INSIDE OF 73 AND A PERCENTAGE OF PORT ACRES COUNTED THE NUMBER OF HOUSES, ESTIMATED THE COST TO REPLACE THE SERVICE LINES MM-HMM.
AND IT'S A FEDERAL MANDATE THAT WE WILL DO IT.
IT'S NOT SOMETHING THAT, I MEAN, IT WILL COST US SOME MONEY, BUT IT'S, SO YOU'LL TELL WHAT I'M HEARING.
THAT'S A 50% MATCH, I MEAN CALLED, IT'S A LOAN ZERO.
IT'S SUPPOSED TO BE A ZERO INTEREST LOAN, 30 YEAR PAYBACK FOR THE 50% MATCH.
SO FOR THE HOMEOWNER? NO, FOR US, WE HAVE TO PAY FOR IT.
YOU GOING TO, WHICH IS GONNA KIND OF BE INTERESTING WITH THE LEGAL DEPARTMENT BECAUSE WE WILL HAVE TO GO UNDER FEDERAL LAW.
WE HAVE TO GO ON PRIVATE PROPERTY AND DO THE WORK UNTIL WE DO THE INVENTORY.
SO SHE DOESN'T KNOW ANYTHING ABOUT THIS.
BUT I'M JUST LETTING YOU KNOW, THERE'S A OP, THERE'S A PROBABLY A SITUATION COMING WHERE WE'RE GONNA BE WORKING WITH THE HOMEOWNERS TO REPLACE A LOT OF THE PIPES OUTSIDE OF THEIR HOUSE AT ZERO COST TO THE HOMEOWNER.
WELL, WE NEED TO, WE NEED TO EXPEDITE THAT.
I, IT'S JUST, WE DON'T KNOW UNTIL WE DO THE INVENTORY.
THAT'S WHAT THIS, HOW LONG IS IT GONNA TAKE Y'ALL TO COMPLETE
[01:15:01]
THIS SURVEY? THE INVENTORY IS ABOUT A TWO YEAR PROCESS.AND THEN HAVE YOU GOT STARTED? UH, WE HAVE A COMPANY THAT APPLIED FOR THE GRANT FOR US.
SO WE ARE WAITING ON THE RESULTS TO START, BUT INTERNALLY, WE ARE ALREADY GATHERING ALL THAT INFORMATION WHEN WE GO TO FIX THE LEAK TO, YOU KNOW, WORK AT A METER.
WE ARE GATHERING THAT INFORMATION ALREADY.
THAT'S GONNA HELP OUR CITIZENS A LOT.
Y'ALL NEED TO, Y'ALL NEED TO PRIORITIZE THAT.
AND AS FAR AS THE PART OF YOUR QUESTION ON THE INDUSTRY, UH, THE INDUSTRIAL AGREEMENTS DON'T MENTION WATER IN THEM EXCEPT FOR ONE, WHICH IS CHENIER BECAUSE THEY SPENT 130 MILLION IMPROVING OUR INFRASTRUCTURE.
SO ALL THE INDUSTRIAL, UH, AGREEMENTS DON'T TALK ABOUT WATER.
THEY ACTUALLY SAY THE WATER AGREEMENT.
WE'RE ACTUALLY NOT POSTED TO HAVE DISCUSSION ON, ON THE INDUSTRIAL AGREEMENTS.
WE HAVE TO FOCUS ON THIS DISCUSSION OF THE BUDGET.
SO WE NEED TO MOVE ON TO THE NEXT QUESTION REGARDING THE BUDGET FROM COUNCIL MEMBER DOUCETTE, AND THEN WE'LL MOVE ON TO THE ACTION ITEMS. RON.
IT, UH, WE HAVE TIME ON THIS WATER RATE INCREASE.
SHOULDN'T THERE BE A, UH, CAN'T WE GET IN ON THE NEXT MEETING AS A, UH, RESOLUTION TO APPROVE OR, OR DISAPPROVED THIS RATE INCREASE BE RIGHT, BECAUSE WE TALKING ABOUT AN ACTION THAT WE ARE INCORPORATING IN THE BUDGET.
IF WE TAKE CARE OF THE ACTION BEFORE WE GET TO THE BUDGET, THEN WHEN YOU BRING THE PROPOSED BUDGET TO US, YOU WON'T SAY BE RECOMMENDING A WATER RATE INCREASE, BECAUSE NOW YOU'RE TYING A COUNCIL MEMBER.
IF I DON'T WANNA VOTE FOR A RATE INCREASE, THEN I WON'T BE VOTING FOR THE BUDGET BECAUSE OF THAT.
SO HOW ABOUT SEPARATING THAT, PLEASE? IT WON'T BE NO PROBLEM.
I DON'T THINK I CAN YOU, I, I WE'LL WORK ON THAT.
YEAH, BECAUSE IT MAKES IT EASIER FOR THE APPROVAL OF THE BUDGET, RIGHT? AND FOR THE YES.
[III.(1) P.R. No. 23276 – A Resolution To Consider Establishing The Proposed Fiscal Year 2023-2024 Tax Rate, Taking A Record Vote And Scheduling A Public Hearing To Receive Public Comment On The Proposed Tax Rate]
CARE OF THAT.NUMBER THREE ITEMS REQUIRING INDIVIDUAL ACTION.
NUMBER ONE, PR NUMBER 2, 3 2 7 6.
A RESOLUTION TO CONSIDER ESTABLISHING THE PROPOSED FISCAL YEAR 20 23, 20 24 TAX RATE, TAKING A RECORD VOTE AND SCHEDULING A PUBLIC HEARING TO RECEIVE PUBLIC COMMENT ON THE PROPOSED TAX RATE.
DO WE HAVE, OKAY, CAN I STATE SOMETHING ABOUT THAT? YES, MA'AM.
SO THIS IS, UM, YOU KNOW, WE'VE BEEN DOING THIS FOR A WHILE, BUT THIS IS ALL PART OF THE TRUTH, TRUTH AND TAXATION, THAT YOU ACTUALLY HAVE TO, BY RESOLUTION, ESTABLISH THE PROPOSED TAX RATE.
UM, SO THEN WHAT'LL HAPPEN AFTER THAT, UH, THE NOTICES WILL GO IN THE PAPER.
SO, UM, BASICALLY JUST LIKE YOU SAID, WE HAVE TO TAKE A RECORD VOTE, ESTABLISHING WHICH NUMBER, UM, WILL BE THE, UH, PROPOSED TAX RATE.
AND I THINK THAT'S ALREADY BEEN STATED OF COURSE, IN THE RESOLUTION.
SO WE JUST HAVE TO FORMALIZE THAT SO THAT I CAN READ THAT INTO THE RECORD.
IT'S ALREADY IN THE RESOLUTION NUMBER.
IT'S ALREADY IN THE RESOLUTION.
YEAH, IT'S THE VOTER APPROVAL TAX RATE.
UM, SO HAVE SPECIFICALLY, OH, JUST THE MANAGER'S.
IT'S IN THE SECOND WHEREAS, AND THEN IT'S ALSO IN SECTION TWO, BOTH PLACES.
AND THEN FROM THERE WE WILL, UH, YEAH, THAT'S IT.
AND THEN WE'RE ALSO SCHEDULING THE PUBLIC HEARING ON THE TAX RATE AS A PART OF THIS, WHICH WOULD BE ON THE 29TH OF AUGUST.
I MAY HAVE A MOTION TO HAVE IT ON THE FLOOR.
P WE HAVE TO HAVE A ROLL CALL.
IS THERE ANY NEED FOR DISCUSSION? OKAY.
CITY SECRETARY, MAY WE PLEASE HAVE A ROLL CALL? COUNCIL MEMBER BECKHAM? YES.
[III.(2) P.R. No. 23284 – A Resolution To Call A Public Hearing To Receive Public Comment On The Proposed Fiscal Year 2023-2024 Budget]
TWO, PR NUMBER TWO, THREE TWO, EIGHT, FOUR.A RESOLUTION TO CALL A PUBLIC HEARING TO RECEIVE PUBLIC COMMENT ON THE PROPOSED FISCAL YEAR 20 23, 20 24.
MAY I HAVE A MOTION PLEASE? MOTION WILL APPROVE.
ANY DISCUSSION NEEDED? DOES THIS ALL SO NEED TO BE BY ROLL CALL? YES.
CITY SECRETARY, MAY I PLEASE HAVE A ROLL CALL? YES.
[01:20:01]
COUNCIL MEMBER DUETTE? YES.NUMBER FOUR, ADJOURNMENT OF THE MEETING.
MAY I PLEASE HAVE A MOTION? SECOND.
WE MEETING HAS BEEN ADJOURNED AT 1133.
THANK YOU ALL FOR YOUR PARTICIPATION.