[00:00:01]
>> CHOSE TO BEGIN WITH THIS LITTLE MUSICAL ENTERTAINMENT,
[1. Presentation of Special Recognition to Barbara "Mother" Hubbard]
BUT A LITTLE BIT OF A CELEBRATION OF WHAT MAKES LUBBOCK ONE OF THE THINGS THAT MAKES LUBBOCK SUCH A GREAT PLACE TO LIVE.THAT'S OUR MUSIC AND OUR ENTERTAINMENT TALENT THAT HAS COME OUT OF LUBBOCK IN THE PAST AND CONTINUES TO COME OUT OF LUBBOCK.
WE WANT TO CONTINUE TO COME OUT OF LUBBOCK WAY INTO THE FUTURE.
I BELIEVE LUBBOCK REALLY IS THE MUSIC AND ENTERTAINMENT STAR OF WEST TEXAS.
DURING MY TIME AS YOUR MAYOR, I HOPE TO MAKE THAT STAR RISE EVEN HIGHER IN THE SKY.
WE'RE HERE TODAY TO FIRST OF ALL, PAY TRIBUTE TO A FEW PEOPLE WHO'VE HAD AN INCREDIBLE INFLUENCE ON THE ENTERTAINMENT INDUSTRY AND ARTISTS WHO ARE IMPORTANT TO US, AND ALSO TO LAY THE GROUND WORK FOR WHAT I HOPE WILL BECOME AN ENTERTAINMENT IDEA THAT WILL DEVELOP INTO A REALITY THAT WILL PLACE LUBBOCK EVEN MORE ON THE MAP AS THE STAR OF WEST TEXAS MUSIC AND ENTERTAINMENT.
I'M GOING TO FIRST INTRODUCE SOMEBODY HERE WHO REALLY FITS THAT PHRASE WHENEVER YOU SAY, THIS IS A MAN WHO NEEDS NO INTRODUCTION.
I'M NOT GOING TO SAY MUCH MORE ABOUT HIM.
HE'S DONE A LITTLE BIT OF EVERYTHING IN THIS CITY, NEWS DIRECTOR, RADIO HOST, CITY COUNCILMAN, AND AN AVERAGE GOLF PLAYER.
BUT, YOU KNOW, HE'S A GREAT GUY, AND I'M GOING TO BRING PAUL BEAN UP HERE.
PAUL, I WANT YOU TO KICK US OFF TODAY.
>> THANK YOU, MAYOR. THE BIG EVENT IS ABOUT TO GET UNDERWAY IN LUBBOCK, TEXAS, AND I'M EXCITED TO BE A SMALL PART OF IT.
BEFORE I INTRODUCE OUR NEXT SPEAKER, I'D LIKE TO INTRODUCE MY WIFE OF 64 YEARS.
FRANCIS, WOULD YOU HOLD YOUR ARM UP, PLEASE.
[APPLAUSE] THE MAYOR JUST SAID UNDER HIS BREATH IT'S AMAZING, AND, OF COURSE, THAT'S TRUE.
I TOLD SOMEONE RECENTLY THAT I HAD BEEN MARRIED 64 YEARS TO THE SAME WOMAN, AND THEY SAID THAT'S NOT POSSIBLE. THEY SAID, I KNOW PEOPLE.
I CAN'T STAND YOU FOR 64 MINUTES.
LET ALONE 64 YEARS, BUT I'M EXCITED TO HAVE HER WITH ME HERE TODAY AND SEATED RIGHT BEHIND HER AS A GENTLEMAN WHO'S ALREADY DONE SOME HARD WORK FOR THIS PLANNED LUBBOCK MUSIC FESTIVAL 2025 BENJAMIN SNEED.
BENJY. THANKS. I HAD A COUPLE OF THINGS TO SAY.
I WAS IN THIS COUNCIL CHAMBER SURROUNDED BY COUNCIL MEMBERS.
I HOPE NONE OF THEM ARE ARMED.
I WAS A LITTLE ALARMED WHEN I HEARD THAT THERE WAS GOING TO BE NO MORE DRAG RACING HERE IN LUBBOCK.
THE CITY COUNCIL HAD VOTED TO DEFUND DRAG RACING.
I THOUGHT, I'M AN OLD DRAG RACER. I LIKE THAT.
USED TO GO TO THE IDA LOO DRAG RACE, AND THEN SOMEBODY TOOK ME ASIDE AND EXPLAINED WHAT THE ISSUE WAS, AND I WAS REALLY SURPRISED.
BUT OUR SPEAKER TONIGHT IS OR THIS AFTERNOON IS A YOUNG MAN THAT I'VE KNOWN FOR A LONG, LONG TIME.
I WALKED THE HALLS OF THE HOSPITAL HERE IN LUBBOCK THE NIGHT HE WAS BORN.
HE IS A THIRD GENERATION BROADCASTER FROM A LEGENDARY BROADCASTING FAMILY.
HIS FATHER SERVED MAYOR OF THIS COMMUNITY.
HIS GRANDFATHER SERVED AS STATE REPRESENTATIVE FOR THIS COMMUNITY FOR YEARS.
BOTH WERE LEGENDARY BROADCASTERS, AND SO IS OUR NEXT SPEAKER, A MAN WHO'S GRACIOUSLY AGREED TO BE CHAIRMAN OF THE 2025 LUBBOCK MUSIC FESTIVAL, MR. GREG MCCALLISTER.
>> THANK YOU. IT'S AN HONOR TO BE HERE.
YOU KNOW, IN LUBBOCK, TEXAS, WHEN YOU STRIKE A CORD AT 3,200 FEET ABOVE SEA LEVEL, WHEN IT SOAKS UP INTO THE BREEZE, THERE'S LITERALLY NOTHING, LITERALLY NOTHING TO STOP IT FROM FLOWING THROUGH THE COAST AND AROUND THE WORLD.
THAT'S OUR WEST TEXAS MUSIC STORY.
IT'S FAME AND ITS TRADITION IMPACTS THE ENTIRE WORLD.
[00:05:01]
WE WANT TO HELP CELEBRATE THAT WITH THE LUBBOCK MUSIC FESTIVAL.I'M HONORED AND PROUD TO BE ASKED TO BE THE CHAIRMAN.
MR. BEAN STARTED TALKING ABOUT THE MCALISTER FAMILY AND THEIR IMPACT ON THE BROADCASTING BUSINESS IN LUBBOCK.
GRANDDAD AND DAD WERE RADIO BROADCASTERS.
BUT THEY BELIEVED IN LUBBOCK, AND THEY DEFINITELY BELIEVED IN MUSIC.
THEY WERE BRINGING BIG ACTS TO LUBBOCK BACK IN THE 60S BACK WHEN IT WASN'T ALL THAT COOL, ACTS LIKE THE RIGHTEOUS BROTHERS, JOHNNY RIVERS, ANDY WILLIAMS, HENRY MANCINI, ALL ALLEGEDLY SOLD OUT WITHIN HOURS.
THEY WERE VISIONARY PEOPLE, AND THEY LOVE LUBBOCK, AND THEY LOVE MUSIC, AND WE WANT TO PASS THAT ALONG AS WELL.
WE WANT TO EMBRACE ALL KINDS OF MUSIC HERE IN LUBBOCK, NOT JUST THE ROCK AND ROLL, THAT GOT ITS INCEPTION JUST A FEW BLOCKS FROM WHERE WE SIT AND STAND RIGHT NOW, BUT JAZZ AND LATIN AND TOHONO, BLUEGRASS, AND SO MANY MORE.
WE WANT THIS TO BE AN INCLUSIVE FESTIVAL THAT EMBRACES ALL TYPES OF MUSIC, AND THAT'S WHAT WE PLAN TO DO THROUGH A PRIVATE PARTNERSHIP.
WE WANT TO PUBLICLY THANK MAYOR MC BR, WHICH HAS A NICE RING TO IT.
I'M PREACHING TO THE CHOIR, LITERALLY.
ALSO WANT TO THANK OUR CITY MANAGER, MR. ATKINSON'S, FOR HIS HEAVY LIFTING THAT HE HAS DONE AND WILL DO GOING FORWARD TO HELP MAKE THIS FESTIVAL POSSIBLE.
IT'S MY JOB NOW TO BE A BRIDGE TO GARY BOREN.
MAX WHO'S BEEN A FRIEND OF MINE FOR A LONG TIME AND IS A DRIVING FORCE BEHIND THE LOBBY MUSIC FESTIVAL, AND HAS BROUGHT MANY BIG NAME MAX TO LUBBOCK, INCLUDING ONE OF THE FIRST STADIUM SHOWS HERE IN WEST TEXAS WITH WAS IT WILLI NELSON AND BOB DILLON AND MELLON CAMP? THE MOST RECENTLY JOURNEY, WHICH WAS AN INCREDIBLE NIGHT HERE IN WEST TEXAS.
LADIES AND GENTLEMEN GARY BOREN. [APPLAUSE]
>> THIS IS REALLY EXCITING TIME TO BE IN LUBBOCK, AND THERE'S NEVER A GOOD TIME TO START MUSIC AND YOU JUST TAKE IT AS IT COMES AND YOU MAKE IT HAPPEN, AND THAT'S WHAT WE HAVE TO DO.
THINGS LIKE THIS JUST DON'T OCCUR.
YOU HAVE TO PUSH IT AND MAKE IT HAPPEN WITH THE RIGHT MEMBERS.
WE'VE GOT A GREAT TEAM WE HAVE BUILT TOGETHER.
AS WE'RE STILL PUTTING THIS COMMISSION TOGETHER, WE'VE GOT KENT MEREDITH.
HE'S THE EXECUTIVE DIRECTOR OF THE UNITED SUPERMARKETS ARENA, WHERE HE'S SERVED SINCE 199, AND THAT'S WHERE I MET KENT.
THEN WE ALSO HAVE DWYANE HOLLAND WITH THE CACTUS, DYNE, I THINK I SAW YOU SOMEWHERE RIGHT HERE.
WE HAVE GOT A GOOD LIST HERE. HERE WE GO.
HE'S WITH THE SPIRIT RANCH WITH ESCONDO RESTAURANT, IF YOU HAVEN'T BEEN OUT THERE.
I'M TELLING YOU IT'S BEAUTIFUL. THE FOOD IS QUALITY.
THEY'VE BEEN DOING THAT SINCE 1977, IT'S GOING TO BE ONE OF OUR KEY AREAS FOR HAVING AN OUTDOOR CONCERT.
WE THINK WE CAN GET AT LEAST 5,000 PEOPLE IN THERE.
IT HAS A BEAUTIFUL PAVILION, A LANDSCAPE LAWN.
WE HAVE POWER, AND IT'LL BE FOOD BEVERAGE, IS GOING TO BE A FIRST CLASS OPERATION, SO WE'RE GLAD TO HAVE JASON WATERS.
THEN WE'LL HAVE A LANE BILL. HE COULDN'T BE HERE TODAY.
HE'S A ASSOCIATE MANAGING DIRECTOR, EXECUTIVE DIRECTOR OF CAMPUS EVENTS, JIM DOUGLASS, CHAIR OF CIVIC LUBBOCK, AND VICE PRESIDENT OF TEXAS TECH ALUMNI.
OF COURSE, SHE DOESN'T KNOW THAT WE'VE CHOSEN HER, BUT LISA THOMASON AND DIRECTOR OF CIVIC CENTER.
WE NEED HER TO BE PART OF OUR GROUP.
THEN JORDAN DALBY, SHE'S A NURSE PRACTITIONER, LUBBOCK DIGESTIVE DISEASE ASSOCIATION.
I TELL YOU IT'S TO WORK WITH THESE PEOPLE, OF COURSE, PAUL R BEAN.
I WANT TO SAY A FEW WORDS ABOUT PAUL BEAN.
60 YEARS BROADCASTING IN LUBA, KCL 950, BACK, TV, AS GREG MENTIONED.
HE WAS THE FIRST NEWS DIRECTOR OF CHANNEL 28.
HE SERVED FOUR YEARS AS A CITY COUNCILMAN.
HE WAS RESPONSIBLE FOR THE BUDDY AND MARIA HOLLY PLAZA THAT WAS BUILT.
I'M GOING TO TELL YOU ONE THING THAT MOST OF YOU DO NOT KNOW IS WHEN THEY ASKED.
THEY HAD A DONOR THAT SAID WE'D GIVE 25 MILLION IF THEY COULD USE BUDDY HOLLY'S NAME ON THE BUDDY HOLLY HALL ON THAT BUILDING.
THEY CONTACTED PAUL, PAUL CALLED ME, AND WE BOTH WENT AND WE CALLED ON MARIA HELENA HOLLY AT TURTLE CREEK IN DALLAS, CATTY CORNER OF JERRY JONES HOUSE.
WE TAKE OFF AND WE GO THERE AND WE SIT DOWN WITH HER, AND PAUL EXPLAINS THE SITUATION TO HER, WHAT'S AT STAKE, WHAT WE'D LIKE TO DO.
SHE LISTENED AND SHE SAYS, I THINK THAT'S A GREAT IDEA, PAUL.
HE SAID, WELL, HE SAID, YOU THINK WE SHOULD CALL IT THE BUDDY HOLLY AND MARIA HOLLY.
[00:10:02]
SHE SAID, NO, IT HAS TO BE BUDDY.HE'S THE STAR. THAT'S HOW THAT HAPPENED.
THAT'S A $25,000,000 GIFT RELATIONSHIPS, AND THAT'S HOW THOSE THINGS OCCUR.
THEN HE ALSO WAS THE PARTNER OWNER OF SIX LOCAL AREA RADIO STATIONS, AND THEN 2020, HE WAS ELECTED TO THE HALL OF FAME, TEXAS RADIO HALL OF FAME.
THAT'S QUITE AN HONOR TO MAKE THAT ALL LUBBOCK.
WE APPRECIATE PAUL YOU BEING PART OF THIS, WHAT WE'RE DOING.
I ALSO WANT TO RECOGNIZE SOME KEY PEOPLE WHO HAVE MADE THIS HAPPEN.
FORMER MAYOR DAVID LANGSTON, STARTED TRYING TO GET MUSIC BACK INTO THE LUBBOCK DEPOT DISTRICT AND SOME OF THESE THINGS TAKING PLACE.
WHEN HE LEFT OFFICE, MAYOR MARK MCDOUGAL CAME IN, AND MARY MCDOUGAL, IT WAS TOUGH TIMES.
THERE'S NEVER A GOOD ECONOMIC YEAR TO DO THIS STUFF.
BUT HE GOT SEED MONEY PLANTED TO START DOING CONCERTS, ACTIVITIES, MUSIC IN THE DEPOT DISTRICT AND STARTED BUILDING IT UP.
HE HAS A LOT TO DO WITH WHERE WE ARE TODAY BECAUSE HE INVESTED TIME, EFFORT, MONEY, AND BUILDING THIS YEAR AFTER YEAR.
THEN IT FELL OFF AND IT'S DRIFTED.
MARK ASKED ME, HE SAID, MY MARK MC BERG.
HE SAID, WHAT CAN WE DO TO MAKE LOVE MUSIC A PRIORITY AGAIN? I SAID, THIS IS ME SPEAKING.
I SAID, WE NEED TO COMPETE WITH SOUTH BY SOUTHWEST.
HE SAID, HOW ARE WE GOING TO DO THAT? I SAID, WE GOT THE MUSIC, WE GOT THE PEOPLE THAT CAN DO IT, BUT IT'S GOING TO TAKE TIME.
WE DON'T DESPISE THE DAYS OF SMALL BEGINNINGS. THAT'S WHAT IT'LL BE.
IT'LL BE A SMALL BEGINNING. BUT WE WANT TO USE EVERY VENUE WE CAN.
WHAT ARE THOSE VENUES? THE STADIUM? I HAD THE OPPORTUNITY TO BE ONE OF THE FIRST TO USE A TEXAS TECH STADIUM.
IT'S A TOUGH PLACE TO HAVE A CONCERT.
IT WAS UNDER CONSTRUCTION, BUT WE PULLED IT OFF.
THEN WE HAVE THE BEAUTIFUL UNITED SUPERMARKET ARENA.
THAT'S GOING TO BE PROBABLY OUR MAIN GO TO BUILDING, AND THEN WE'LL HAVE THE CACTUS.
WE'LL HAVE THE SPIRIT RANCH, ESCONDIDO, AND HOPEFULLY SOME OTHER LOCATIONS THAT WE ARE WORKING ON RIGHT NOW.
IT'LL BE MULTI PLATFORM, MULTI AREAS, WE WANT TO TAKE A MAJOR BAND TO COME IN LIKE AN ANCHOR STORE.
IT'S BEEN HERE MANY TIMES AS A PERSONAL FRIENDS OF MY BUSINESS ASSOCIATE BARBARA AND MOTHER HUBBARD, OR IT COULD BE GARTH BROOKS, WHICH I'VE HAD THE OPPORTUNITY TO BE HIS PERSONAL BODYGUARD AND WORK WITH HIM LAST TIME HE WAS HERE, OR IT COULD BE MAYBE BILLY JOEL.
MAYBE IT COULD BE SOME NAME WE DON'T KNOW.
WE'RE LOOKING AT BOOKS AND DYNE, WE'VE CONTACTED EAGLES, WE'RE CONTACTING MAJOR BANDS, SANTANA, WE'RE LOOKING AT ALL OF THEM.
WE WANT THE CITY OF LUBBOCK, WHEN WE CALL THEM TO SAY, WE REPRESENT THE CITY OF LUBBOCK.
THAT'S THE PURPOSE OF WHAT WE'RE TRYING TO DO TODAY.
WITH THAT IN MIND, I ALSO WANT TO RECOGNIZE DUSTIN BURROS.
HE COULDN'T BE HERE. HE'S BEHIND US 100%.
SENATOR CHARLES PERRY'S IN AUSTIN.
HE SAID, HEY, TELL HIM I'M BEHIND YOU, AND DO ANYTHING WE CAN TO HELP.
MATT CROW OUT OF HIS OFFICE IS HERE, SOMEWHERE, I THINK I SAW MATT OVER HERE.
THEN WE HAVE CURTIS PARRISH, COUNTY JUDGE CURTIS, BACK HERE.
WE HAVE A LOT OF PEOPLE THAT ARE INTERESTED IN SEEING MUSIC, WHICH IS PART OF LUBBOCKS' DNA FIBER START COMING UP.
AT THIS TIME NOW, I'M GOING TO TURN OVER TO KENT MEREDITH.
HE'S THE EXECUTIVE DIRECTOR OF THE UNITED SUPERMARKET ARENA SINCE 1999.
ANY MAJOR GROUP THAT'S BEEN TO LUBBOCK, HE'S INVOLVED WITH IT.
I HAD THE OPPORTUNITY TO GET TO WORK WITH HIM AND WORK FOR HIM.
HE ALSO SERVED AS ASSISTANT VICE PRESIDENT FOR THE AUXILIARY SERVICES AT TEXAS TECH.
PRIOR TO COMING TO LUBBOCK IN 1999, HE WORKED AS A BOOK AND COORDINATOR AND ASSISTANT TO THE DIRECTOR OF THE ALA MODO IN SAN ANTONIO.
HE KNOWS EVENT MANAGEMENT, AND HE KNOWS HOW TO DEAL WITH ALL THE AGENTS, THE AGENCIES. HE TALKS TO THEM.
THESE ARE THE CONNECTIONS WE HAVE TO HAVE TO HAVE THAT KENT IS ALSO CERTIFIED VENUE EXECUTIVE, AS RECOGNIZED BY THE INTERNATIONAL ASSOCIATION OF VENUE MANAGERS.
HE'S BEEN A MEMBER OF THE IA VM, WHICH IS THE COMPANY I JUST MENTIONED THE BOARD I JUST MENTIONED, WHERE HE HAS SERVED AS ON THE BOARD OF DIRECTORS TWICE.
HE'S CHAIR AND DIRECTOR OF REGION SIX, WHICH INCLUDES TEXAS, OKLAHOMA, KANSAS, NEW MEXICO, AND MEXICO.
HE HAS HIS DEGREE FROM TEXAS STATE AND MA EDUCATION FROM THE UT AT SAN ANTONIO AND A DOCTORATE IN HIGHER EDUCATION AT TEXAS TECH.
HE DID HIS DISSERTATION ON THE OPERATIONS OF STATE OWNED AND OPERATED MULTI PURPOSE ARENAS.
[00:15:04]
YOU SAID, WHAT DOES ALL THAT STUFF SUPPOSED TO MEAN? IT MEANS MUSIC IS RELATIONSHIPS, IT'S CONTACTS, IT'S KNOWING WHO TO CALL, WHO TO WORK WITH.WHO CAN GIVE YOU REFERENCES? HE'S GOT THEM ALL.
THAT IS SO POWERFUL IN WHAT WE'RE TRYING TO DO.
KENT, I APPRECIATE YOUR LEADERSHIP, APPRECIATE HE'S GOING TO PRESENT A LITTLE HISTORY OF THE UNITED SUPERMARKET ARENA AND GIVE YOU SOME IDEAS WHAT'S TAKEN PLACE HERE IN THE LAST 25 YEARS.
THANKS FOR LETTING ME BE HERE, ALTHOUGH I THINK GARY HAS SET ME UP.
HOW DO YOU FOLLOW PAUL BEAN? A PROFESSIONAL SPEAKER IN THE VOICE OF LUBBOCK AND GREG MCCALLISTER, AND THE LIVE MUSIC, DID YOU DO THAT FOR EVERY COUNCIL MEETING? I THINK IF YOU DID, THE BUDGET PROCESS WOULD GO SMOOTHER IF YOU HAD LIVE.
THERE YOU GO. BUT I'M EXCITED TO BE HERE TODAY.
I THINK THAT ANY MANAGER COULD BE HERE TODAY TALKING ABOUT WHAT THEY DO.
GARY JUST HAPPENED TO HAVE MY NUMBER, I THINK IT WAS LATE AT NIGHT AND HE CALLED ME UP AND I WAS THE FIRST ONE THAT ANSWERED.
I SAID, SURE, I'D LOVE TO BE THERE.
TALK ABOUT WHAT WE DO AT THE ARENA.
AS GARY MENTIONED, WE WILL CELEBRATE OUR 25TH ANNIVERSARY, NOVEMBER 19TH, COMING UP, SO WE'RE EXCITED ABOUT THAT.
I'VE BEEN ASKED TO TALK ABOUT THREE THINGS.
ONE, THE SHOWS THAT WE'VE DONE AT THE ARENA, WHICH I HAD A POWERPOINT, BUT I'M NOT SURE HOW I ADVANCE THINGS, SO I GUESS SOMEBODY'S DOING IT.
THANK YOU VERY MUCH. I'M SURE I PUSHED A BUTTON AND IT'S PROBABLY GOING TO GO THE WRONG WAY. THANK YOU.
TO TALK ABOUT THE EVENTS THAT WE'VE DONE AT THE ARENA, HOW WE GET THOSE EVENTS TO LUBBOCK AND TO INTRODUCE OUR GUEST OF HONOR TODAY, WHICH IS THE BIGGEST HONOR I'VE EVER HAD, I THINK, TO INTRODUCE BARBARA.
BUT FIRST, TALKING ABOUT THE UNITED SPIRIT ARENA AND WHAT WE DO.
THE ARENA WAS BUILT FOR TEXAS TECH BASKETBALL AND VOLLEYBALL.
THEY WERE HOPING TO BE ABLE TO DO A FEW OTHER THINGS.
IN FACT, I CALLED A BUDDY OF MINE WHEN I WAS AT THE ALAMO DOME AND SAID, HEY, I GOT THE JOB AT TECH.
HE SAID, YOU'RE GOING TO BE AWFUL BORED, WHICH YOU CAN'T BE BORED WITH JUST BASKETBALL, NOT THE WAY WE'VE BEEN PLAYING THE LAST COUPLE OF YEARS, BUT ANYWAY, HE SAID, YOU'RE GOING TO BE BORED BECAUSE ALL THEY'RE GOING TO DO IS BASKETBALL.
THE GUY THAT HIRED ME, JIM BRANCHES, SAID, NO, NO, NO, WE INTEND TO DO A LOT MORE.
HOPEFULLY, WE'VE EXCEEDED EXPECTATIONS IN THE EVENTS THAT WE'VE BEEN ABLE TO BRING TO LUBBOCK, EVEN THOUGH WE HAVE A PERMANENT WOODEN FLOOR, AND THAT PREVENTS US FROM DOING SHOWS AND MONSTER TRUCK SHOWS AND WHATNOT.
BUT HOPEFULLY THE MUSIC SHOWS THAT WE'VE BEEN ABLE TO BRING TO LUBBOCK.
EVERYONE'S BEEN TO, I KNOW COUNCILMAN, MARTINEZ GARCIA HAS BEEN TO OUR ARENA.
HOPEFULLY ALL OF THE COUNCIL HAS BEEN THERE FOR SOMETHING.
WE'D LIKE TO SAY WE MAKE MEMORIES.
I GOT TO TELL YOU, MARY, THIS IS GOING TO BE A MEMORY OF MINE BECAUSE HOW OFTEN DO YOU ADDRESS THE CITY COUNCIL? IF I MESS UP, BECAUSE AS I TOLD GARY, I'M THE BACK OF THE HOUSE PERSON, I DO NOT TALK IN FRONT OF A CROWD.
ANYWAY, IN MY STAFF, I WANTED TO RECOGNIZE MY STAFF, IF YOU WOULDN'T MIND STANDING UP FROM THE ARENA.
THEY'RE THE ONES THAT REALLY MAKE IT HAPPEN.
[APPLAUSE] TALKING ABOUT MUSIC, AND I THINK WE ALL GOT THAT TASTE AS WE CAME IN.
MUSIC HAS BEEN CALLED THE MEDICINE OF THE MIND IN THE HEART.
ACTUALLY, I FOUND THE QUOTE ABOUT THE MIND, BUT I ALSO BELIEVE IN YOUR HEART.
BECAUSE WHEN YOU GO TO SHOWS, YOU SOMETIMES IF IT'S LOUD ENOUGH, YOU ACTUALLY FILL IT IN YOUR HEART, AND YOU WONDER IF THAT'S GOOD FOR IT OR NOT, BUT I'VE SURVIVED.
LIVE MUSIC CAN HAVE A POSITIVE EFFECT ON MENTAL HEALTH.
THERE'S BEEN STUDIES TO SHOW THAT.
IT PROVIDES FOR SOCIAL INTERACTION AND STRESS RELIEF, AND IT BRINGS PEOPLE TOGETHER.
IT'S ALSO A QUALITY OF LIFE ENHANCEMENT FOR THE COMMUNITY.
IT'S ALSO A POSITIVE ECONOMIC IMPACT FOR LOCAL HOTELS, RESTAURANTS, AND SHOPS.
I GOT TO TELL YOU SOMETHING WHEN I FIRST GOT HERE AND I DO IT EVERY ONCE IN A WHILE, ESPECIALLY WHEN WE DO GEORGE STRAIT OR GARTH BROOKS.
I CALLED AROUND AT THE LOCAL HOTELS ON THE DAY OF THE SHOW, AND I SAID, HEY, DO YOU HAVE ANY ROOM AVAILABLE? I LOVE IT WHEN THEY SAY NO, AND I SAY, REALLY, WHAT'S GOING ON? THEY SAY, OH, THERE'S A BIG CONCERT IN TOWN. I LOVE THAT.
[00:20:02]
NOW THERE'S MORE HOTELS AND I DON'T KNOW IF WE'RE FILLING THEM UP.I DO KNOW WE DO IT FOR COMMENCEMENT.
BUT HOPEFULLY THAT CONTINUES TO HAPPEN.
WE DO ATTRACT VISITORS FROM THE COMMUNITY AND WE BOOST TOURISM.
WE KNOW FROM WORKING WITH SELECTA WHERE THE TICKETS ARE PURCHASED, WE HAVE PEOPLE BUYING THEM IN DIFFERENT STATES AND EVEN OVERSEAS FROM TIME TO TIME.
WHEN WE DID PAUL MCCARTNEY, WE HAD PEOPLE THEY FOLLOW THESE ACTS, AND THEY COME INTO TOWN AND THEY STAY OVERNIGHT, AND THEY GO OUT TO THE BUDDY HOLLY CENTER AND THEY SEE ALL THE ATTRACTIONS THAT WE HAVE.
ANY OF THE MUSIC STUFF THAT GOES ON IN TOWN, WHETHER IT'S OUR VENUE, OR THE BUDDY HOLLY HALL, OR ANY OF THESE PLACES PEOPLE GO, IT BUILDS TOURISM AS WELL.
IT'S A POSITIVE IMPACT FOR THE COMMUNITY.
REAL QUICKLY, JUST GOING OVER SOME OF THE EVENTS THAT WE'VE HOSTED.
WHEN I GOT HERE, AGAIN, THERE WAS A QUESTION ON WHETHER WE COULD DO SHOWS.
WELL, HAVING THE RELATIONSHIP WITH LIVE NATION AND AG, CALLED HIM UP AND SAID, HEY, WE HAVE A BEAUTIFUL BUILDING IN LUBBOCK.
WHAT ABOUT BRINGING SOME GREAT EVENTS TO LUBBOCK? LET ME ALSO SAY GREG HAD MENTIONED SOME OF THE EVENTS THAT LUBBOCK HAD DONE.
WE HAVE NOT STARTED THE TRADITION OF BRINGING BIG ACTS TO LUBBOCK.
GREG, I DON'T GO AS FAR BACK AS YOU DID, BUT VICKI KEY PROVIDED ME SOME THINGS.
NEIL DIAMOND, SONNY AND SHER, ELVIS PRESLEY PLAYED THE COLSEUM.
I THINK THE COUNCIL IS KIND OF YOUNG.
THEY PROBABLY DON'T REMEMBER MOST OF THOSE ACTS.
DID YOU GO TO SOME OF THOSE? WHEN YOU WERE LITTLE LIKE, 4, 5, YOU MIGHT HAVE REMEMBERED THEM.
I'M CERTAINLY NOT THE FIRST TO BRING THOSE FOLKS, AND I WON'T BE THE LAST.
BUT WE STARTED WITH ELTON JOHN.
HE LIKED IT SO MUCH AND HE TALKED ABOUT BUDDY HOLLY.
HE CAME BACK TEN YEARS LATER FOR OUR TENTH ANNIVERSARY.
WE TRIED TO GET HIM FOR OUR 20TH, BUT BY THAT TIME, HE WAS ABOUT TO RETIRE, AND HE DECIDED TO JUST PLAY STADIUMS. IF YOU CAN GET THE MONEY AND SELL THE TICKETS, WHY NOT? WE FOLLOWED WITH KISS DIXIE CHICKS WITH LOVES NATE MAINES.
JAMES TAYLOR, WHICH HONESTLY IS MY PERSONAL FAVORITE.
WE ALSO HAD THE EAGLES AND SHER, UNFORTUNATELY, WITHOUT SONNY THIS TIME.
WE HAD TOBY KEITH AND WE HAD THIS IS A LOT OF PEOPLE, ERI SMITH, SHANIA TWAIN, MATAICA, VAN HALEN, ZIZI TOP.
WE'RE GOING TO GO THROUGH THESE REAL QUICK BECAUSE I KNOW THE TIME IS LIMITED.
BUT ENRIQUE AGLACIS, AND PITBULL, GEORGE STRAIT, WHO'S BEEN HERE FIVE TIMES, ROD STEWART, HAS ANYONE BEEN TO ANY OF THESE SHOWS? GREAT. AWESOME. GARTH BROOKS, WHO'S ONLY BEEN HERE ONCE WHEN WE HAD THE ARENA BUT HE PLAYED FIVE SHOWS IN FOUR DAYS.
THAT IS GREAT, EXCEPT HE'S AN ENTERTAINER THAT GOES OVER HIS TIME AND WE HAVE PEOPLE STANDING OUTSIDE WAITING FOR THE NEXT SHOW, WHICH IS A GREAT PROBLEM TO HAVE.
PAUL MCCARTNEY. HOW OFTEN DO YOU GET A CHANCE TO HAVE ONE OF THE BEATLES? THAT WAS REALLY EXCITING TO HAVE PAUL HERE.
THE NEXT PERSON, HER CAREER WAS GOING NOWHERE UNTIL SHE PLAYED LUBBOCK.
THEN ALL OF A SUDDEN, SHE TOOK OFF AND NOW SHE'S PLAYING STADIUMS, AND I REALLY THINK IT'S BECAUSE OF LUBBOCK AND WHAT SHE DID HERE.
HOW DO WE GET THESE SHOWS? HONESTLY, IT'S RELATIONSHIPS.
YOU HAVE TO HAVE A POSITIVE RELATIONSHIP WITH THE AGENTS WITH THE ARTISTS, WITH THE PROMOTERS.
YOU CAN HAVE A BEAUTIFUL BUILDING, AND I'VE SEEN THIS IN SOME COMMUNITIES, AND IF YOU DON'T HAVE THAT RELATIONSHIP AND THAT TRUST, YOU WILL NOT BE ABLE TO BRING IN THESE SHOWS TO YOUR COMMUNITY.
TALKING ABOUT THE ARENA AND TALKING IF WE WOULD GET EVENTS WHEN WE FIRST OPENED.
THERE'S A REPORT THAT WAS DONE FOR TEXAS TECH ABOUT WHAT KIND OF EVENTS WE COULD BRING WITH A NEW ARENA.
WELL, THEY WERE SAYING, WELL, WE'RE 150TH MEDIA MARKET SIZE.
WE'RE NOT GOING TO BRING IN MANY MORE SHOWS THAN WHAT'S HERE ALREADY.
THEY WERE TALKING ABOUT AMARILLO AND MILLEN ODESSA, ALL OF THEM BEING BIGGER THAN US, MEDIA MARKET WISE.
I CAN PROBABLY TELL YOU MORE ABOUT WHAT THAT MEANS.
I THINK WE'RE STILL ABOUT THE SAME ABOUT 146, IS THAT RIGHT? THERE'S 145 MARKETS THAT ARE PROBABLY BIGGER.
IN THE MEDIA AND POPULATION AND WHATNOT.
BUT AGAIN, IT'S THE RELATIONSHIP.
WHEN WE GOT ELTON JOHN, WE FLEW A GUY OUT FROM LIVE NATION.
HE SPENT 15 MINUTES IN THE BUILDING, AND HE SAID, YEAH, YOU'VE GOT A BUILDING, AND SO WE STARTED DOING ALL THESE SHOWS.
IT'S ALSO A RELATIONSHIP WITH OUR PARTNERS HERE IN THE CITY OF LUBBOCK.
[00:25:02]
WE COULD HAVE BEEN SEEN AS COMPETITORS WITH THE COLISEUM AND THE CIVIC CENTER, AND THAT NEVER HAPPENED.I WANTED TO BRING OUR TICKETING COMPANY WITH US FROM THE ALAMO DOME.
THEY WERE THE LARGEST TICKETING COMPANY REALLY IN THE WORLD.
I THINK EVERYONE KNOWS WHO THAT PROBABLY IS.
BUT I KNEW THEM AND I HAD A RELATIONSHIP AND THEY SAID, OH, I DON'T THINK YOU'RE GOING TO DO THAT MANY SHOWS, THEY DIDN'T EVEN BID ON IT, SO WE GOT SELECT TO SEE.
WELL, ABOUT A YEAR LATER AFTER WE'VE DONE ALL THESE SHOWS, MY BUDDY FROM THAT TICKETING COMPANY CALLS AND SAID, HEY, IF YOU GO BACK OUT ON BID, LET ME KNOW.
SELECT A SEAT IS DOING A GREAT JOB.
WE'VE BEEN WITH THEM EVERY SINCE AND WHAT PARTNERS THEY HAVE.
PEOPLE MIGHT SAY, WELL, SELECT SEAT OF LUBBOCK, WHAT IS THAT? MOST OF OUR PROMOTERS KNOW NOW WITH THE INTERNET, YOU CAN BUY TICKETS FROM ANYWHERE IN THE WORLD, WHICH THEY DO.
I HAVE TO TELL YOU AND MAYOR I MEAN THIS IN CITY COUNCIL AND CITY MANAGER.
THE BEST PEOPLE THAT I'VE KNOWN IN THIS INDUSTRY WORK FOR THE CIVIC CENTER.
LISA THOMASON IS PROBABLY ONE OF THE BEST PEOPLE I KNOW.
SHE'S A BACK OF THE HOUSE KIND OF PERSON TOO WHEN SHE BECAME THE INTERIM DIRECTOR OF THE LIBRARY FOR A COUPLE OF MONTHS, I WENT AND GOT MY LIBRARY CARD JUST BECAUSE OF HER.
SHE IS SUPER TO WORK WITH AND THAT'S TALKING ABOUT RELATIONSHIPS AND PARTNERSHIPS AND ALL OF BROOKS PEOPLE, THEY DO A GREAT JOB.
WITHOUT THOSE FOLKS, WE WOULD NOT BE ABLE TO DO THE SHOWS THAT WE DO.
NOW, THE HONOR THAT I HAVE TODAY IS TO INTRODUCE BARBARA MOTHER HUBBARD.
I WAS FORTUNATE TO BE WITH BARBARA LAST WEEK IN PORTLAND.
SHE WAS ON A PANEL OF MINE, TALKING ABOUT 100 YEARS OF OUR PROFESSIONAL ASSOCIATION OF VENUE MANAGERS.
WHAT BETTER PERSON TO HAVE ON YOUR PANEL TO TALK ABOUT 100 YEARS OF YOUR ORGANIZATION THAN A 97-YEAR-OLD PROMOTER AND FORMER VENUE MANAGER.
BARBARA WAS GREAT. THE ONLY PROBLEM IS IF YOU SPEND TIME WITH BARBARA AT A CONFERENCE LIKE THIS, YOU GET NOWHERE BECAUSE EVERYONE WANTS TO COME UP TO HER AND GET A PICTURE AND TALK WITH HER.
YOU JUST GOT TO EXPECT IT'S GOING TO GO A LITTLE SLOW WITH BARBARA.
BARBARA HAS BEEN INSTRUMENTAL IN BRINGING SOME OF THE BIGGEST NAMES IN ENTERTAINMENT TO LUBBOCK, TEXAS, AS WELL AS TEXAS AND ARKANSAS AND OF COURSE HER HOMETOWN OF LAS CRUCES, NEW MEXICO.
HER REMARKABLE JOURNEY AND CONTRIBUTIONS HAVE LEFT A LASTING IMPRESSION UPON THE ENTERTAINMENT INDUSTRY.
I CAN TELL YOU I WENT TO NASHVILLE A COUPLE OF YEARS AGO WITH HER, AND THERE'S A LOT OF THE AGENCIES THERE, WILLIAM MORRIS CAA AND WHATNOT.
NORMALLY, YOU DON'T EVEN GET AN APPOINTMENT WITH THESE PEOPLE.
YOU MIGHT TALK WITH SOME INTERN ABOUT WHO YOU'D LIKE TO BRING.
BARBARA JUST WALKS RIGHT IN, AND THEY ALL KNOW HER.
SHE JUST WALKS RIGHT INTO THE OFFICES, THEY HUG HER, THEY KNOW WHO SHE IS, AND TALKING ABOUT RELATIONSHIPS.
SHE KNOWS EVERYTHING ABOUT THEIR FAMILIES.
SHE'S MET THEIR FAMILIES, THEIR KIDS, AND SHE BRINGS SOMETHING WITH HER.
IT MIGHT BE JUST A BIG PIN OR SOMETHING.
BUT SHE BRING GIFTS EVERYWHERE.
IF YOU GET TO KNOW BARBARA TODAY, NEXT TIME SHE COMES TO LUBBOCK, SHE'LL BRING YOU SOMETHING.
BARBARA IS ORIGINALLY FROM BENTON, ARKANSAS, AND SHE STARTED WORKING AT A YOUNG AGE.
SHE WAS A NEWSPAPER CARRIER, I BELIEVE WHEN SHE WAS ABOUT 10-YEARS-OLD, AND SHE ALSO MOWED LAWNS.
AROUND THAT TIME, HER FATHER HAD SOME SURGERY, WENT WRONG, AND BECAME BLIND.
BARBARA TOOK CARE OF HER FATHER, BUT SHE LEARNED A WORK ETHIC FROM HER FATHER BECAUSE HE CONTINUED TO WORK AND WORKED HARD.
FROM HIM, SHE LEARNED THE IMPORTANCE OF MAKING NO EXCUSES, SKIPPING THE COMPLAINING AND WORKING HARD, SHE'S STILL DOING THAT TO THIS DAY.
BARBARA EARNED A MASTER'S DEGREE IN BIOLOGY, AND THEN SHE DECIDED TO LEAVE ARKANSAS AND HEAD WEST BECAUSE SHE WANTED SOMEPLACE WARM.
I DON'T THINK YOU PASS THROUGH LUBBOCK BECAUSE YOU WOULD HAVE ENDED UP HERE, BUT SHE ENDED UP IN LAS CRUCES.
SERIOUSLY, JUST TO GET A HOTEL.
SOMEHOW SHE ENDED UP TALKING WITH A HIGH SCHOOL PRINCIPAL.
IN 15 MINUTES SHE HAD A JOB TEACHING HIGH SCHOOL BIOLOGY.
SHE WAS WEARING SHORTS AND A T-SHIRT WHEN SHE GOT THE JOB.
THAT'S BARBARA, AND SHE'S BEEN THERE EVERY SINCE.
THEN SHE BEGAN TEACHING AT NEW MEXICO STATE UNIVERSITY.
THEN THE BASKETBALL COACH THERE, LOU HENSON, IF YOU'RE A BASKETBALL FAN, YOU WHO HE IS, THEY JUST OPENED THE PAN AMERICAN CENTER AND THEY NEEDED SOMEBODY TO RUN IT.
BACK IN THAT DAY, THERE WERE NOT TOO MANY WOMEN THAT RAN FACILITIES LIKE THIS, BUT HE CHOSE BARBARA BARBARA STARTED
[00:30:01]
RUNNING THE BASKETBALL GAMES AND THEN SHE REALIZED SHE HAD ALL THESE KIDS WORKING FOR HER.THEY NEEDED MUCH MORE WORK THAN JUST THE BASKETBALL SEASON AND WHATNOT.
SHE DECIDED TO PUT SOME ENTERTAINMENT ACTS INTO THE BUILDING.
SHE KNEW NOTHING ABOUT HOW TO BRING THESE ACTS IN, BUT SHE QUICKLY FOUND OUT AND SHE DID IT FOR THE KIDS, BY THE WAY, WHICH REMINDS ME, SOME KEY CHANGES WERE MADE ABOUT BARBARA A COUPLE OF YEARS AGO.
ON THE BACK, IT SAYS, IT'S FOR THE KIDS.
IF YOU TALK TO BARBARA, THAT'S WHAT SHE DOES. SHE'S A NONPROFIT.
WHEN SHE BRINGS THESE SHOWS TO LUBBOCK, SHE DOESN'T MAKE A DIME.
SHE INVESTED BACK INTO THE COMMUNITY, AND I HAVE A PICTURE OF A YOUNG LADY THAT BENEFITED FROM THAT.
BUT HER FIRST ACT AT THE PAN AMERICAN CENTER WAS IC TINA TURNER, FOLLOWED BY NEIL DIAMOND AND CHARLIE PRIDE.
AGAIN, I KNOW THE COUNCIL IS REALLY YOUNG, BUT THEY WERE REALLY BIG IN THEIR TIME. I PROMISE.
[OVERLAPPING] WHERE DID SHE GET THE NAME MOTHER HUBBARD? WELL, SHE BROUGHT IN BOB HOPE FOR AN EVENT, AND HER AND BOB WORKED ON SOME DIFFERENT THINGS TOGETHER.
ANYWAY, SHE HAD BOB HOPE THERE AND THEY WERE GOING UP SOME STAIRS, AS I UNDERSTAND IT, AND BOB FELL BACK AND BARBARA SAVED HIM FROM FALLING LIKE A MOM WOULD DO.
HE GOT ONSTAGE AND HE WENT UP AND WENT TO THE MICROPHONE AND SAID, THANK YOU, MOTHER HUBBARD, AND ITS STOCK.
THAT'S REALLY HOW SHE GOT THE NAME, MOTHER HUBBARD, WAS FROM BOB HOPE.
IN FACT, THERE'S A PICTURE OF HER AND BOB HOPE.
WE'LL GO THROUGH A FEW PICTURES.
KENNY ROGERS, JOHN WAYNE, SHE HAS PLAYED CARDS WITH JOHN WAYNE AT HIS HOUSE.
IF YOU MEET BARBARA, YOU'D LIKE THAT ONE DEGREE AWAY FROM ALL OF THESE FOLKS.
>> THIS IS A T-SHIRT THAT WAS MADE FOR HER 95TH BIRTHDAY PARTY.
IT'S LIKE A CONCERT TOUR SHIRT.
ON THE BACK OF THE SHIRT WHERE NORMALLY THE ACT WILL SAY WHERE THEY'RE PERFORMING, THIS IS ALL THE ACTS THAT SHE HAS HELPED WITH AND HELPED BRING.
I THINK THEY'RE PROBABLY GOING TO HAVE TO GET A BIGGER SHIRT, BARBARA, FOR THE NEXT ONE.
BARBARA ALSO STARTED THE AMERICAN COLLEGIATE TALENT SHOWCASE SCHOLARSHIP PROGRAM HELPING TO LAUNCH THE CAREERS OF PERFORMERS LIKE JEFF DUNHAM AND SINBAD.
BY THE WAY, JEFF DUNHAM, WAS THE MC AT HER 95TH BIRTHDAY PARTY.
SHE HAS ESTABLISHED ENDOWMENT PROGRAMS AT SEVERAL SCHOOLS AROUND THE UNITED STATES, INCLUDING TEXAS TECH UNIVERSITY WITH COMBINED ENDOWMENTS NEARING $1 MILLION, THAT'S JUST IN NEW MEXICO.
THESE SCHOLARSHIPS SUPPORT STUDENTS ASPIRING TO ENTER THE ENTERTAINMENT INDUSTRY AND VENUE MANAGEMENT.
PRETTY MUCH, IF YOU WANT TO GO TO NEW YORK AND SEE A BROADWAY SHOW, YOU CAN CALL BARBARA AND SHE KNOWS PEOPLE TO GET TICKETS.
WE'VE HAD STUDENTS BENEFIT FROM HER.
THIS IS OUR FIRST RECIPIENT OF THE BARBARA MOTHER HUBBARD AWARD.
MEGAN WAS ONE OF OUR STUDENTS AT TEXAS TECH.
SHE MADE IT POSSIBLE FOR HER TO CONTINUE FOR HER MASTER'S DEGREE, TO ATTEND HER FIRST CONFERENCE BACK IN 2019, AND MEGAN NOW IS AN EVENT MANAGER AT THE ARENA IN OKLAHOMA CITY.
BARBARA HAS HELPED REALLY THOUSANDS OF KIDS.
WE HAD AN INTERN WORKING OVER THE BUDDY HOLLY HALL SOON AFTER SHE GRADUATED, THAT GOT ONE OF HER SCHOLARSHIPS.
BARBARA HAS BEEN INSTRUMENTAL IN BRINGING MEMORABLE EVENTS TO LUBBOCK, INCLUDING PERFORMANCES BY RASCAL FLATTS, GEORGE STRAIT, GARTH BROOKS, AND PAUL MCCARTNEY.
SHE CONTINUES TO WORK TIRELESSLY TO ATTRACT SHOWS TO LUBBOCK.
SHE'S WON A LOT OF NUMEROUS REWARDS, WHICH I KNOW WE DON'T HAVE TIME TO GO OVER THAT, BUT SHE DID RECEIVE THE HIGHEST HONOR POSSIBLE FROM OUR VENUE MANAGEMENT ASSOCIATION, SHE'S ALSO RECEIVED HER HONORARY DOCTORATE FROM NEW MEXICO STATE, AND AS I SAID, LAST MONTH, SHE CELEBRATED HER 97TH BIRTHDAY.
BARBARA MOTHER HUBBARD'S DEDICATION, VISION, AND TIRELESS WORK HAVE LEFT AN INDELIBLE MARK ON THE ENTERTAINMENT WORLD AND SHE REMAINS A DRIVING FORCE IN THE INDUSTRY.
IT IS MY HONOR AND PRIVILEGE TO PRESENT TO YOU, MAYOR AND CITY COUNCIL, DR. BARBARA MOTHER HUBBARD.
[00:35:01]
>> WAIT A MINUTE, KEN, YOU HAVEN'T TOLD THE LAST OF IT.
HE FORGOT TO TELL YOU THAT YOU ALL ARE MY SECOND HOME, WHETHER YOU KNOW IT OR NOT.
I JUST TOLD HIM, I'M GOING HOME, AND I AM IN JUST A FEW MINUTES, AND LAY OUT A THREE-TRACK STADIUM SHOW, AND WE'LL ALL HAVE FUN.
GOD BLESS EACH AND EVERY ONE OF YOU.
I LOVE WHAT I DO, AND YES, IT IS FOR THE KIDS.
>> IT'S MY HONOR TO READ THIS SPECIAL RECOGNITION FOR BARBARA MOTHER HUBBARD.
>> YEAH, I'M NOT GOING TO READ EVERYTHING THAT'S ON HERE BECAUSE THAT WOULD BE A REPEAT OF EVERYTHING WE'VE JUST SAID, BUT I HAD DINNER WITH HER LAST NIGHT, AND [INAUDIBLE] ALL THE TIME AND THEY'RE TRYING TO IMPRESS YOU.
SHE DROPPED SO MANY NAMES, BUT IT'S NOT TRYING TO IMPRESS YOU, IT'S BECAUSE SHE REALLY KNOWS THESE PEOPLE, REALLY HAS A RELATIONSHIP WITH HER, AND IT'S ALWAYS ABOUT, AS SHE SAYS, TRYING TO HELP SOMEBODY ELSE.
IT'S NOT ABOUT HER, NEVER BEEN ABOUT HER.
SHE IS AN AMAZING WOMAN AND AN AMAZING EXAMPLE.
LET ME JUST READ THIS SPECIAL RECOGNITION.
WHEREAS BARBARA HUBBARD FONDLY NICKNAMED MOTHER HUBBARD BY BOB HOPE IS AN ICON MUSIC TRAILBLAZER, MENTOR, VISIONARY, AND TREMENDOUS GIFT TO LIVE MUSIC, AND THERE ARE VERY FEW CONCERT EXECUTIVES ALIVE TODAY WHO HAVE NOT BEEN INFLUENCED IN SOME WAY BY BARBARA, WHO'S BEEN INVOLVED IN THE CONCERT BUSINESS SINCE 1968 WHEN SHE STARTED AS PROGRAM AND STUDENT ACTIVITIES DIRECTOR AT NEW MEXICO STATE UNIVERSITY.
WHEREAS BARBARA IS PASSIONATE ABOUT MUSIC, MENTORING GENERATIONS OF PROFESSIONALS IN THE ENTERTAINMENT INDUSTRY FROM ENTERTAINERS TO CONCERT PROMOTERS, AND SHE CONTINUES TO TEACH CLASSES AND VENUE MANAGEMENT AND REMAINS EXECUTIVE DIRECTOR OF HER BRAINCHILD, THE AMERICAN COLLEGE COLLEGIATE TALENT SHOWCASE, A SCHOLARSHIP PROGRAM THAT TRAIN STUDENTS FOR SUCCESSFUL CAREERS IN MUSIC AND ENTERTAINMENT.
WHEREAS SHE'S BEEN THE RECIPIENT OF MANY AWARDS AND ACCOLADES, I'LL MENTION JUST A COUPLE, POLLSTAR'S FIRST-EVER LIFETIME ACHIEVEMENT AWARD.
POLLSTAR IS THE BIG ENTERTAINMENT AND VENUE MAGAZINE.
SHE'S GOT THEIR FIRST LIFETIME ACHIEVEMENT AWARD, AND BILLBOARD MAGAZINE'S GOLDEN CIRCLE AWARD.
HER FIRST CONCERTS, AS WE'VE TOLD YOU WERE WITH IKE TURNER.
DID JEFF DUNHAM EVER MAKE A PUPPET ON YOU? I DON'T KNOW.
I WOULD LIKE TO SEE THAT IF YOU EVER DID, BUT HERE'S THE MOST IMPORTANT THING.
SHE BELIEVES THAT IF GOD GIVES YOU A GIFT, IF GOD GIVES YOU A DREAM, YOU HAVE TO LIVE IT OUT.
SHE HAS SPENT HER LIFE LIVING OUT HER DREAM AND HELPING OTHERS TO LIVE OUT THEIR DREAMS AS WELL FOR MOST OF HER 97 YEARS.
I THINK IT'S THEREFORE APPROPRIATE FOR THE CITY OF LUBBOCK AS THE HOME OF PAST AND UP COMING MUSIC LEGENDS TO JOIN THE ENTIRE MUSIC INDUSTRY IN RECOGNIZING AND THANKING BARBARA MOTHER HUBBARD FOR ALL OUR ACCOMPLISHMENTS AND CONTRIBUTIONS TO MUSIC AND ENTERTAINMENT.
NOW, THEREFORE, WE, THE MAYOR AND CITY COUNCIL OF THE GREAT CITY OF LUBBOCK, DO HEREBY OFFER SPECIAL RECOGNITION TO BARBARA HUBBARD IN LUBBOCK AND ASK ALL CITIZENS TO JOIN US IN THANKING HER FOR A SIGNIFICANT CONTRIBUTIONS TO THE MUSIC INDUSTRY, APPLAUD HER FOR A LIFETIME OF ACHIEVEMENTS IN THE MUSIC AND ENTERTAINMENT INDUSTRY, AND CONGRATULATE HER ON A CAREER FULL OF SUCCESS AND MILESTONES, AND THANK HER FOR PROVIDING SO MUCH ENJOYMENT TO COUNTLESS INDIVIDUALS. THANK YOU, BARBARA. [APPLAUSE]
>> GOD BLESS EACH AND EVERY ONE OF YOU AND [INAUDIBLE] [LAUGHTER].
>> I'VE GOT ONE OTHER RECOGNITION HERE, AND THIS IS A SPECIAL RECOGNITION FOR HOLLY FIELDS, WHO IS HERE WITH US TODAY.
HOLLY, WOULD YOU COME FORWARD, PLEASE? CULTURAL ARTS ARE ESSENTIAL CORNERSTONE OF THE CITY OF LUBBOCK AND SOUTH PLAINS HISTORY WITH PERFORMANCES RANGING FROM THEATRIC STORYTELLING ON STAGE TO ORCHESTRAL MASTERPIECES FROM ACROSS THE GLOBE.
LUBBOCK HAS REGULARLY ASSEMBLED MASSIVE CROWDS WITH UNIQUE AND SHARED INTERESTS AND LOVE FOR ART AND CULTURE.
WHEREAS FOR THE PAST FOUR YEARS, HOLLY FIELDS HAS ACTED AS THE DIRECTOR AND REGIONAL DIRECTOR OF MARKETING AND SALES FOR THE BUDDY HOLLY HALL OF PERFORMING ARTS AND SCIENCES, HER IMPECCABLE SKILLS, DEDICATION, PROFESSIONAL BACKGROUND IN EVENT MANAGEMENT HAVE CONTRIBUTED TOWARDS COUNTLESS SUCCESSES FOR BUDDY HOLLY HALL AND CONTINUATION OF CULTURAL IMPORTANCE IN LUBBOCK EVENTS.
WHEREAS, DURING HER TIME IN LUBBOCK, SHE'S CONTRIBUTED TO IGNITING PASSION AND INTEREST IN THE ARTS AND CULTURE, AND SHE'S MOVED RECENTLY, UNFORTUNATELY, TO LAWTON, OKLAHOMA TO CONTINUE SHARING HER EXPERTISE AND TALENTS FOR COORDINATING LARGE-SCALE EVENTS WITH THE APACHE CASINO HOTEL.
[00:40:02]
IT'S APPROPRIATE TO RECOGNIZE AND COMMEND HOLLY FOR HER TIME AND SERVICE TO THE CITY OF LUBBOCK AND TO COORDINATE EVENTS AND CULTIVATE APPRECIATION FOR THE ARTS.THEREFORE, WE, THE MAYOR AND CITY COUNCIL OF GREAT CITY OF LUBBOCK, DO HEREBY EXTEND SPECIAL RECOGNITION TO HOLLY FIELDS.
>> I WANT TO THANK THE CITY COUNCIL AND ESPECIALLY WANTTO THANK [INAUDIBLE] TREMENDOUS HELP.
I JUST CAN'T REALLY TELL YOU HOW MUCH HE'S HELPED US.
ALSO, I FAIL TO RECOGNIZE RANDY JORDAN.
RANDY JORDAN IS THE CHAIRMAN THAT GOT THE EXPO DEAL PASSED IN 2018, AND HE'S BEEN STANDING FAITHFUL THROUGH COVID, THROUGH HIGH INFLATION, THROUGH HONORARY BOARD MEMBERS, BUT HE'S PUSHED THROUGH AND WE'RE ON THE VERGE NOW OF GETTING READY TO PUT A SHOVEL IN THE DIRT.
THE EXPO WILL BE A REAL JEWEL IN THE CITY OF LUBBOCK, WILL HELP OUR ENTERTAINMENT BUSINESS FINANCIALLY, ECONOMICALLY, TREMENDOUSLY.
THEN I WANT TO RECOGNIZE MIKE DALBY IF HE'S STILL HERE.
MIKE DALBY IS THE COUNTY COMMISSIONER, AND HE MIGHT HAVE ALREADY LEFT.
I APOLOGIZE FOR THAT AND I OVERLOOKED THAT ONE.
I DO APPRECIATE THE MAYOR AND THE CITY COUNCIL.
EVERYTHING YOU HAVE DONE, YOU'RE A KEY.
YOU MAKE IT HAPPEN, YOU HELP THESE RELATIONSHIPS GO.
THANK YOU VERY MUCH FOR YOUR TIME ALLOWING US TO INTERRUPT YOUR SCHEDULE TODAY.
>> THANK YOU, EVERYBODY FOR COMING TODAY AND FOR BEING A PART OF THIS.
JUST TO GIVE AN EXAMPLE THAT LUBBOCK IS SO MUCH MORE THAN JUST WHAT WE SIT UP HERE AND DO, IT'S SO MUCH MORE THAN PUTTING TOGETHER BUDGETS.
IT'S PEOPLE WHO LOVE THIS CITY AND WHO WORK TIRELESSLY TO MAKE IT A BETTER PLACE FOR ALL OF US.
THESE ARE JUST SOME EXAMPLES OF THOSE KIND OF PEOPLE WHO MAKE LUBBOCK THE GREAT PLACE TO LIVE, THE HOME THAT WE ALL ENJOY HERE. I APPRECIATE ALL OF YOU.
THERE'S MANY OTHERS IN THIS CROWD WHO'VE BEEN A PART OF THAT, SO THANK YOU FOR BEING HERE TODAY AND THANK YOU FOR ALL THAT YOU DO FOR LUBBOCK.
TODAY, WE WILL CONTINUE OUR WORK SESSION, AND LET ME JUST REMIND EVERYBODY.
IF YOU DON'T WANT TO STAY FOR THE BUDGET SESSION, THIS IS A GOOD TIME TO LEAVE, BUT IF YOU DO, YOU'RE ALWAYS WELCOME TO STAY.
I WANT TO GIVE YOU AN OPPORTUNITY TO STEP OUT GRACEFULLY.
I NOW CALL INTO SESSION THIS WORK SESSION,
[1. Presentation and discussion of the Proposed FY 2023-24 Operating Budget and Capital Program, and discuss all funds of the City, including but not limited to General Fund, Debt Service Fund, Internal Services, Enterprise Funds, Special Revenue Funds, Component Units, Related Entities, Debt and Debt Obligations, Capital Improvement Program, current and proposed American Rescue Plan Act Funds and uses, and related and associated items and use of such funds; and provide direction to the City Manager to make changes to said Budget.]
AND TO REMIND EVERYBODY, THIS IS JUST A DISCUSSION OF OUR BUDGET, AND IT'S THE BUDGET THAT HAS BEEN PREPARED AND PROPOSED TO US BY OUR CITY MANAGER.WE ARE NOT TAKING ANY ACTION ON THE PROPOSAL TODAY OR TOMORROW, WE'LL MEET AGAIN AT 2:00.
THIS IS PURELY AN OPPORTUNITY FOR OUR CITY MANAGER TO PRESENT HIS BUDGET AND FOR US TO ASK QUESTIONS OF HIM IN PREPARATION FOR VOTES THAT WE WE'LL TAKE LATER ON.
I CALL THIS SESSION TOGETHER, AND AT THIS POINT, I TURN IT OVER TO OUR CITY MANAGER MR. ATKINSON.
>> THANK YOU, MAYOR, CITY COUNCIL. TELL YOU WHAT? WE'LL TAKE JUST A QUICK MOMENT.
WE LEFT YESTERDAY'S SESSION WITH A FEW QUESTIONS.
WE HAVE ANSWERS TO SEVERAL OF THOSE, SO I'LL START WITH THAT, AND THEN WE'LL MOVE INTO TODAY'S BUSINESS.
ONE OF THE QUESTIONS THAT WAS ASKED, WHAT WOULD BE THE REVENUE GAINED FROM THE M&O, THE MAINTENANCE AND OPERATIONS PROPERTY TAX, IF YOU WENT TO THE VOTER APPROVAL RATE? REMEMBER THAT IS A PLUS 3.5% ON REVENUE.
ALSO, THEN THAT SAME QUESTION AS THE VOTER APPROVAL RATE WITH THE UNUSED INCREMENT IN IT.
YOU SEE ON THE TOP RIGHT OF THE PAGE IN FRONT OF YOU, AND COUNCIL AFTERWARDS, WE'LL CONDENSE THESE AND EMAIL THEM OUT.
THE BUDGET YOU HAVE FROM ME IS THAT NUMBER THAT IS THE 94.5 MILLION.
THE ONE RIGHT BELOW THAT, THAT IS THE PLUS 3.5% OVER THE NO NEW REVENUE RATE, OR 96.1 MILLION, WHICH WOULD BE 1.6 OVER THE BUDGET I BROUGHT FORWARD.
[00:45:06]
THE THIRD LINE ON THERE IS THEN WHERE YOU TAKE THAT VOTER APPROVAL RATE PLUS THE CREDIT FOR NOT GOING TO THE THREE-AND-HALF NUMBER IN PRIOR YEARS, IT'S WHAT'S CALLED THE UNUSED INCREMENT, THAT RATE WOULD GENERATE 99.2 MILLION OR 4.7 MILLION OVER THE NO NEW REVENUE RATE.AGAIN, THE BUDGET THAT YOU HAVE IS BALANCED WITH THAT NUMBER AT THE TOP, SO THE 94.5.
THE VERY BOTTOM LINE, WE HAD A QUESTION AND APOLOGIZE, WE HAD IT UP HERE LAST NIGHT AND JUST DIDN'T GET IT PULLED OUT IN TIME.
WHAT WAS THE VEHICLE COST? YOU SEE IT DOWN THERE.
IT'S 22.1 MILLION, AND THAT'S NOT ALL NECESSARILY VEHICLES, IT INCLUDES EQUIPMENT.
WE HAD ANOTHER ONE BROUGHT UP ABOUT THE DEBT PROFILES.
IF YOU'LL ALLOW ME, I'M GOING TO ZOOM IN JUST ON THIS ONE FOR THE MOMENT, ONE ON THE LEFT.
THAT IS THE DEBT PROFILE SPECIFIC TO YOUR WATER FUND.
I THINK WE WERE HAVING THAT DISCUSSION PART OF, IT WAS HOW DOES LAKE ALAN HENRY FIT, AND THEN I'LL FILL IN THE BLANKS? WHERE DOES LAKE 7 FIT AS YOU GO INTO THE FUTURE? IF YOU LOOK THE FISCAL YEAR '24-'25, SUBJECT OF OUR BUDGET TODAY, YOU SEE THAT THE TOTAL REQUIREMENT, PRINCIPAL PLUS INTEREST FOR THE WATER FUND IS 35.1 MILLION.
THE LARGE FALL-OFF HITS AND REALLY HAS FALLEN OUT WHEN YOU GET TO THE FISCAL YEAR '31, AND YOU'RE NOW DOWN TO 12.9 IN TOTAL REQUIREMENTS.
THAT IS LARGELY THE PURCHASE AND CONSTRUCTION OF THE LAKE, THE MINERAL RIGHTS THAT WENT WITH THAT, THE DAM, THE PIPELINE, THE PUMPING STATIONS THAT ARE IN LINE TO THAT, AND THEN ULTIMATELY, WHAT WE NOW CALL THE SOUTH WATER TREATMENT PLANT.
THERE'S THAT. AGAIN, WE'LL SEND IT OUT.
WE DID GET WASTEWATER DONE, WE'LL HAVE GENERAL FUND DONE IN THE NEXT DAY OR TWO FOR YOU.
THE MAJORITY OF THE DEBT THAT WILL BE ASSOCIATED WITH WASTEWATER IS TIED TO WHAT WE CALL THE NORTHWEST WATER RECLAMATION PLANT, THAT IS THE NEWER OF YOUR TWO SEWER PLANTS.
IT IS BASICALLY AT NORTH QUAKER AND CLOVIS, IT'S ON THE OTHER SIDE OF THE RAILROAD, BUT THAT'S WHERE THAT PLANT SITS.
THE REST OF THAT IS GOING TO BE GENERAL IMPROVEMENTS AT YOUR LARGE PLANT THAT IS DOWN BY LAKE 6, AND THEN, OF COURSE, IF WE DO VERY LARGE LINES, SOMETIMES THOSE COULD FACTOR IN THERE.
ALL IN, YOU CAN SEE IT'S LESS TOTAL REQUIREMENTS, BUT YOU ALSO SEE HOW THAT DEBT FALLS OFF.
ANY QUESTIONS ON THOSE THREE ITEMS THAT WE'VE BROUGHT YOU?
>> WE'LL KEEP MOVING. ANOTHER QUESTION WAS ASKED.
AS WE WERE LOOKING AT THE DEBT SLIDES YESTERDAY, THERE WAS A QUESTION, WHAT WAS THE LUBBOCK POWER AND LIGHT DEBT THAT WAS ON THERE? THAT WAS THE PAYMENT TO WIPE OUT OR TO END THE OLD SOUTHWESTERN PUBLIC SERVICE PARTIAL REQUIREMENTS CONTRACT, THAT WAS A FUTURE YEAR ELECTRIC SUPPLY CONTRACT, THAT HAD TO BE ELIMINATED IN ORDER TO DO THE ERCOT TRANSITION.
IT OF COURSE COULDN'T BE PUT INTO EFFECT UNTIL THE ERCOT TRANSITION WAS GOING.
WITH THAT, WE'RE STILL WORKING ON SOME SMALL NUMBERS ON SOME OTHERS.
WE HAD SEVERAL QUESTIONS ABOUT HOTEL OCCUPANCY TAX.
WE'VE BEEN ABLE TO ADD SOME INFORMATION SLIDES TO TODAY'S.
YOU'LL GET TO THAT TOWARDS THE END OF THE DECK, AND WE CAN HAVE THAT DISCUSSION.
SO IF THERE'S NO QUESTIONS, MAYOR, I CAN JUMP RIGHT IN TO WHERE WE GO.
>> COUNCIL, TODAY, NOT TALKING ABOUT TAXES, INVESTMENTS, DEBTS.
TODAY, YOU'LL BE FIRST GOING THROUGH YOUR VARIOUS ENTERPRISE FUNDS OF THE CITY.
REMEMBER, THE ENTERPRISE FUNDS ARE YOUR BUSINESS UNITS.
THEY CHARGE FOR A PRODUCT OR A SERVICE, AND THEN THEY BALANCE THAT EXPENSE THROUGH THOSE RATES OR FEES.
YOU'LL ALSO HAVE A SECTION ON SPECIAL REVENUE FUNDS.
THAT IS A WIDE RANGING GROUP, SO WE'LL TAKE THOSE WHEN WE GET THERE, INTERNAL FUNDS, AND THEN WHAT ARE CALLED COMPONENT UNITS, WHICH ARE PIECES OF THE CITY OVER WHICH ULTIMATELY, YOU, THE CITY COUNCIL HAVE THE CONTROL AS IT RELATES TO THE BUDGETS AND FINANCES.
START WITH WATER AND WASTEWATER.
YOU'LL SEE THIS IN TWO SEPARATE PIECES HERE IN A MOMENT.
BUT AS A COMBINED FUND, THE ITEMS OF NOTE, THE REVENUE FROM THE WATER METERED OPERATIONS IS DECREASED SLIGHTLY.
WE HAD A PRETTY AGGRESSIVE BUDGET LAST YEAR.
WE DID HAVE A MINOR RATE INCREASE.
BUT UP TO THIS POINT IN THE YEAR, IT'S LARGELY BECAUSE WE'VE HAD LOWER WATER USAGE.
NOW, THE WEATHER OVER THE LAST FEW DAYS COULD VERY WELL CHANGE THAT, BUT THAT'S WHERE YOU STAND AT THE MOMENT.
WASTEWATER REVENUE INCREASE DUE TO PROPOSED INCREASE TO THE BASE RATE.
[00:50:03]
WE MENTIONED THAT YESTERDAY.REMEMBER THAT IS $1 ON THE BASE.
THEN WE'VE GOT A SLIGHT INCREASE IN REVENUE FROM DEPARTMENT OPERATIONS.
THAT'S RELATED TO WATER RECONNECT FEES.
REMEMBER PREVIOUSLY, A LOT OF THAT WORK WAS DONE THROUGH LUBBOCK POWER AND LIGHT.
IT IS NOW ALL DONE THROUGH YOUR WATER DEPARTMENT.
HERE IS THE EXPENSE SUMMARY THAT MATCHES THE SAME.
AGAIN, COUNCIL, AS IT RELATES TO COMPENSATION AS TO BENEFITS, A LOT OF WHAT YOU HEARD YESTERDAY IS THE SAME AS YOU GO THROUGH THESE.
DO NOTE THAT WE HAVE A BIT OF A DECREASE IN OPERATIONS AND MAINTENANCE COST, AND SOME OF THAT'S FROM ELECTRIC.
THAT PART OF THE GAME IS WORKING FOR US.
LITTLE BIT OF SYSTEM MAINTENANCE DECREASE.
AS IT HAS SINCE THE DAY COVID BEGAN, CHEMICALS CONTINUE TO JUST ESCALATE AS WE GO FORWARD.
THAT IS SLIGHTLY DECREASING IN BOTH BONDS AND TAX NOTES.
AGAIN, THE TAX NOTES ARE FOR YOUR MORE EXPENSIVE PIECES OF HEAVY EQUIPMENT.
THE PILOT WOULD GO UP BASED ON THE PROPOSED TAX RATE.
WE HAVE ACCOUNTED FOR THAT IN YOUR BUDGET PRESENTATION.
THE FRANCHISE FEES, OF COURSE, ARE TIED TO REVENUE.
ONE NOTE TO DISCUSS, TRANSFER TO LUBBOCK POWER AND LIGHT IS INCREASING ASSOCIATED WITH BUSINESS OFFICE ALLOCATION.
THIS IS THE CITY OF LUBBOCK UTILITY OPERATION THAT LP&L RUNS.
THAT IS WHERE THE BILLS FOR THE FOUR CITY UTILITIES COME OUT.
I DON'T WANT THAT TO READ AS IF LP&L HAS INCREASED THAT COST.
RATHER WHAT IT IS, I FEEL LIKE WE'RE DOING A BETTER JOB OF ALLOCATING THAT COST ACROSS OUR FOUR UTILITIES.
THIS YEAR, WE UNDERTOOK AN ANALYSIS TO TRY TO DIVIDE OUT THE COST OF SERVICE FROM CITY OF LUBBOCK UTILITIES BASED ON THE TOTAL REVENUE THAT WENT THROUGH EACH OF THOSE UTILITIES.
I THINK THAT'S PRODUCED A MORE FAIR ALLOCATION OF COST ACROSS OUR FUNDS.
QUESTIONS ON THE TWO BIG ONES? HERE IS YOUR WATER AND WASTEWATER RATE MODEL.
IN JUST A MOMENT, I'LL ZOOM THAT UP JUST A LITTLE BIT.
NOTE AT THE TOP THOUGH THAT FOR WATER, NO RATE CHANGES.
FOR WASTEWATER, A $1 PACE RATE INCREASE, NO INCREASE TO THE VOLUME PART OF THAT RATE.
I'M GOING TO ZOOM IN JUST A BIT.
THE COLUMN THAT'S UNDER DISCUSSION TODAY IS THE PROPOSED FISCAL YEAR 2025.
YOU SEE IMMEDIATELY TO ITS LEFT, THE FORECAST NUMBER TO FINISH OUT OUR CURRENT YEAR.
HERE YOU SEE THE JUST UNDER $4 MILLION INCREASE IN THE TOTAL REVENUE.
AGAIN, A LITTLE OVER ONE MILLION OF THAT, JUST A TITCH OVER ONE MILLION.
THAT IS YOUR $1 INCREASE THAT'S COMING IN ON WASTEWATER.
NEXT LINES ARE GOING TO TAKE YOU TO THE VARIOUS EXPENSES.
YOU'VE GOT OPERATIONS AND MAINTENANCE.
YOU HAVE THAT INDIRECT COST ALLOCATION, THE TRANSFER TO LP&L.
THAT'S THE BUSINESS OFFICE PIECE OF IT, TRANSFER TO OTHER DEPARTMENTS.
VERY BOTTOM, YOU SEE CASH CAPITAL.
THIS IS PAY AS YOU GO OR CASH FUNDING THAT WE ROLL THROUGH.
COUNCIL, I CAN ZOOM IN IF YOU WOULD LIKE, BUT THE FIVE COLUMNS TO THE RIGHT, THAT CONTINUES YOUR FIVE YEAR CAPITAL PLAN.
YOUR FUTURE BUDGETS WILL BE BUILT OFF OF THOSE, BUT OF COURSE, THEY WILL BE ADJUSTED EACH YEAR FOR ACTUAL CONDITIONS AS WE ADD THE NEXT YEAR AFTER THAT TO KEEP THAT FIVE YEAR PLAN GOING.
THERE IS ANOTHER PAGE OF THAT.
WE'LL ZOOM IT IN. AGAIN, PROPOSED FISCAL YEAR 2025 IS YOUR COLUMN.
YOU SEE THE EXISTING DEBT SERVICE.
I DID MENTION BRIEFLY YESTERDAY WHEN WE DID INVESTMENTS THAT THERE ARE SOME LEVEL OF INTEREST EARNINGS ON BOND FUNDS.
YOU SEE THAT COMING IN HERE, AND THEN THE VEHICLE AND EQUIPMENT DEBT.
NOTE THAT WE PROPOSE NO NEW DEBT SERVICE.
THERE IS NOTHING COMING ON TO THESE FUNDS.
IN THIS YEAR, THERE WILL BE SOME THAT COMES ON IN THE FOLLOWING YEAR.
TOWARD THE MIDDLE AND THE BOTTOM OF THE PAGE, THESE ARE YOUR KEY FINANCIAL METRICS.
WE TALKED YESTERDAY. WE MENTIONED THE MOODY'S RATINGS.
THIS IS THE PART OF THE MATH THAT THEY REALLY LIKE TO SEE.
THEY ONLY SUBTRACT OUT THE OPERATIONS AND MAINTENANCE EXPENSE.
THEY DO THAT TO GIVE YOU A NUMBER THAT IS AVAILABLE DOLLAR FOR DEBT SERVICE COVERAGE.
FOR THE PROPOSED FISCAL YEAR, THAT AMOUNTS 106.2 MILLION.
YOU BALANCE THAT WITH YOUR 57.7 IN DEBT SERVICE.
THAT THEN GIVES YOU A COVERAGE RATIO COMPARED TO A TARGET RATIO.
AS YOU CAN SEE HERE, OUR COVERAGE RATIO IS ABOVE THE TARGET RATIO.
NOW YOU SAW THIS ALSO YESTERDAY ON THAT LARGE SHEET.
45.7 MILLION IS THE BEGINNING POSITION FOR THE YEAR.
[00:55:02]
WE ESTIMATE THE ENDING NET AT 50.9.RESERVE FUND REQUIREMENT IN THIS FUND IS 39 MILLION LEAVING 11.8, IF SOMETHING WERE TO OCCUR, AND YOU NEEDED DOLLARS WITHOUT HAVING TO GO AND GET THOSE FROM RATE PAYERS OR FROM SOMETHING ELSE.
THE VERY FINAL ROW IS BASE RATE AS A PERCENT OF DEBT SERVICE.
THAT ALSO IS A KEY METRIC WHEN WE GO THROUGH OUR FINANCIAL RATINGS.
YOU SEE THAT IN THE CURRENT YEAR WE'RE AT 91%.
IN THE NEW YEAR, WE'RE AT 98%.
PART OF THAT IS JUST AS OUR DEBT SERVICE IS SLIGHTLY DOWN AND THE FINANCIALS GET BETTER, THAT HELPS.
SOME OF THAT IS DUE TO THE PROPOSED $1 INCREASE IN THE WASTEWATER.
QUESTIONS ON THESE TWO MODEL SLIDES THAT WE'VE LOOKED AT? THAT'S A LOT ON TWO PAGES.
THIS IS THE SPECIFIC OF HOW THE RATE INCREASE WORKS.
IF YOU GO TO WATER AT THE TOP OF THE PAGE, THE SHORT VERSION OF THAT IS NO CHANGE.
AGAIN, THERE ARE NO RATE CHANGES PROPOSED RELATIVE TO YOUR WATER UTILITY.
THE BOTTOM PART OF THE PAGE, THAT IS YOUR WASTEWATER.
YOU'VE GOT A VOLUME RATE ACROSS THE TOP.
THE VERY NEXT SLIDE DOWN IS WASTEWATER BASE RATE AND THE 0.75 INCH, THAT'S A THREE QUARTER INCH METER.
WASTEWATER IS NOT METERED, THE WATER IS METERED.
YOU MATCH THE TWO OF THOSE WHEN YOU SET UP YOUR RATES.
FOR THAT, IF YOU WERE TO HAVE A THREE QUARTER INCH WATER METER, THE $1 ON BASE MEANS YOU WOULD GO FROM $16.55 TO $17.55.
THE CHANGES FARTHER DOWN THAT ARE RELATED TO LARGER AND LARGER METERS.
IT'S THE SAME PERCENT CHANGE CARRIED DOWN THROUGH THERE.
>> THE AVERAGE HOMEOWNER HAS A THREE QUARTER INCH?
>> MOST OF YOUR LITTLE BIT OLDER HOMES WILL BE THREE QUARTERS, MOST OF THE NEWER HOMES WILL BE 1 ".
>> IF WE'RE READY, WE'LL START TALKING ABOUT WATER CAPITAL.
I MAY HAVE TO KEEP THIS ONE ZOOMED OUT JUST A LITTLE BIT.
THE RECOMMENDED CAPITAL PROJECTS UNDER WATER.
THE ONGOING FIRE HYDRANT REPAIR AND REPLACEMENT PROGRAM, ASKING FOR 430,000.
THAT IS CASH. THAT'S CASH OUT OF THESE FUNDS.
IT DOES NOT COME FROM ANYWHERE ELSE.
COUNCIL, ABOUT THREE YEARS AGO GAVE US THE FUNDING TO ADD A DEDICATED CREW TO WORK ON THE FIRE HYDRANTS.
THIS IS NOT A GAME THAT WILL EVER END.
WE HAVE EVER MORE FIRE HYDRANTS, AND THE ONES WE HAVE IN THE GROUND GET OLDER AND OLDER BY THE DAY, SO WE WILL KEEP DOING THAT.
YOUR NEXT ONE, LAKE 7 PERMITTING AND MITIGATION.
THIS IS ONE OF THE TWO LAKE 7 ITEMS. ALL OF THIS LEAD UP IN THE LINEUP TO SUBMITTING THE PERMIT NOW TO THE FEDERAL GOVERNMENT.
YOU HAVE THE STATE PERMIT FINISHED, DONE, WATER RIGHTS ADJUDICATED.
YOU HAVE THAT IN HAND. YOU WILL SEE OVER THE YEARS, SLIGHTLY MORE MONEY COMING OUT INTO THIS ONE EACH TIME.
WE CAN'T ACCURATELY PREDICT IT BECAUSE WE DON'T KNOW IF THE CORPS OF ENGINEERS WILL COME BACK AND SAY, HEY, YOU SHOULD EVALUATE THIS, YOU SHOULD EVALUATE THAT. THAT KEEPS THIS GOING.
LEAD SERVICE LINE REPLACEMENT.
THIS IS ACTUALLY AN EPA MANDATE.
THIS IS A PROGRAM WHERE EVERY PUBLIC WATER UTILITY IN THE UNITED STATES IS TO GO THROUGH AND FIRST FIND OUT, ARE THERE LEAD SERVICE LINES? WE HAVE GONE THROUGH A SIGNIFICANT PORTION OF THE CITY, AND WE HAVE NOT FOUND ANY TO DATE.
WE CAN WIPE OUT, YOU CAN ZERO OUT A HUGE PART OF THAT JUST BASED ON THE DATE THAT THE SPECIFICATIONS CHANGED TO PVC.
IT'S AFTER THAT DATE YOU KNOW IT DOESN'T HAVE LEAD.
NOW WE ARE DOWN TO THE PART WHERE LITERALLY WE WILL BE OPENING A METER CAN AND LOOKING IN TO SEE WHAT'S ON THE CUSTOMER SIDE OF THAT METER, WHETHER THAT IS A LEAD LINE OR NOT.
THE NEXT STEP IN THIS PROGRAM, ONCE ALL OF THIS WORK IS DONE TO SEE, DO YOU HAVE ANY? IF YOU DO, HOW MANY AND WHERE ARE THEY? THE NEXT STEP IN THE PROGRAM REALLY IS PUBLIC NOTIFICATION.
WHAT HAPPENS AFTER THAT? WE DON'T KNOW.
IN THE GENERAL RULE, WE ARE PROHIBITED FROM WORKING ON THE CUSTOMER SIDE OF THE METER.
IT'S NOT A WHOLE LOT DIFFERENT THAN THE SEWER DISCUSSION WE'VE BEEN HAVING.
THAT'S THE PRIVATE PORTION OF THAT.
DON'T KNOW WHAT THE EPA AND ULTIMATELY THE TCEQ, THE TEXAS COMMISSIONER ENVIRONMENTAL QUALITY WILL DO.
[01:00:03]
THIS IS NOT AN OPTIONAL PROGRAM.WE'RE ABOUT THREE QUARTERS OF ONE MILLION INTO IT TO DATE.
THIS IS TO GET US TO THAT NEXT STEP IN THAT.
AGAIN, I THINK IT'S IMPORTANT TO NOTE WE'VE NOT FOUND ANY YET.
I CAN'T SAY THERE AREN'T ANY, BUT I WOULD NOT EXPECT THERE WILL BE ANY SIGNIFICANT NUMBER OF THOSE.
YES, THIS WAS ENTIRELY PROMPTED BY WHAT HAPPENED IN FLINT, MICHIGAN.
NOT TO PRETEND TO BE A SCIENTIST.
THAT WAS CAUSED LARGELY BY A CHANGE IN THE WATER THAT WAS USED.
THERE WAS A CHEMICAL COMPOSITION CHANGE THAT CAUSED THAT LEACH.
MOVING AGAIN, DEMOLITION OF ELEVATED AND GROUND STORAGE TANKS, 275,000.
ONGOING PROJECT TO LOCATE AND REPAIR WATER VALVES.
THIS IS REALLY THE SAFETY PIECE OF YOUR WATER SYSTEM.
AS LONG AS WE KNOW WHERE OUR VALVES ARE, THEY HAVEN'T BEEN PAVED OVER, THEY HAVEN'T OTHERWISE GONE TO WHERE YOU CAN'T FIND THEM.
WE NEED TO KNOW WHERE THEY ARE, WE NEED TO KNOW THAT THEY WORK.
IF THEY DON'T WORK, WE HAVE DOLLARS TO REPLACE THEM.
IF THERE'S A BREAK, IN MOST CASES, WE CAN ISOLATE A BREAK WITH EITHER NOBODY OUT OF WATER OR ONLY A VERY SMALL NUMBER OUT OF WATER.
YOU'VE GOT THE LARGE VALVE PROJECT.
THIS IS THE SAME BASIS, BUT THESE ARE FOR THE VALVES THAT ARE ON YOUR MAIN TRANSMISSION LINES, NOT ON YOUR DISTRIBUTION LINES.
I BELIEVE THIS IS THE OTHER ONE THAT IS TIED TO LAKE 7, AND IT WILL INCLUDE THE CLOSING OF THE PROPERTY.
NEXT IS NEW WATER METER SETS AND WATER METER REPLACEMENTS.
THIS IS FOR NEW GROWTH, 2.4 MILLION OVER THE YEAR.
REMEMBER, THESE METERS ARE THE AUTOMATED METERS.
THEY'RE THE ONES THAT REPORT BACK FOR CONSUMPTION.
WE HAVE AN ONGOING PROGRAM THAT WE FUND FOR WATERLINE REPLACEMENT.
WE'RE ASKING FOR ONE MILLION TO KEEP THAT GOING.
WE DO DO WATER LINES AHEAD OF STREET PAVING.
IF WE KNOW WE'RE COMING INTO A STREET AND IT'S GOING TO GET A SUBSTANTIAL REDO, WE WANT TO CHANGE OUT THE WATER LINES THERE BEFORE THEY DO THAT.
THAT IS THE PROGRAM AND THE DOLLARS THAT MAKES THAT HAPPEN.
THAT COVERS REPLACEMENT, COVERS STREET PAVING, JUMP DOWN TO WATER LINES AHEAD OF ARTERIALS.
SAME THING. BUT THE WATER LINES UNDER THE ARTERIALS ARE YOUR BIG ONES.
IT'S A SEPARATE CAPITAL PROJECT.
THEN, COUNCIL, AS WE HAVE TALKED OVER THE LAST FEW MONTHS INCLUDING ABOUT YOUR ARPA FUNDS, WEST LUBBOCK WATER SYSTEM EXPANSION, THERE IS YOUR $28 MILLION.
THAT ONE WILL BE A REVENUE BOND.
I SHOULD HAVE. FUTURE WATER SUPPLY PROJECT IS ALSO A REVENUE BOND.
THAT MEANS IT IS ISSUED ON THE CREDIT OF YOUR WATER SYSTEM, AND IT IS FUNDED ONLY BY THE REVENUE FROM YOUR WATER SYSTEM.
IT DOES NOT IMPACT YOUR GENERAL FUND.
ANY QUESTIONS ON WATER CAPITAL?
>> JERRY, CAN YOU EXPLAIN TO EVERYBODY WHAT WE'RE DOING IN THE WEST LUBBOCK WATER SYSTEM EXPANSION, JUST SO EVERYBODY BE CLEAR WHERE THAT MONEY'S GOING TO.
>> CERTAINLY. THAT IS A LOT OF MONEY, PLUS THERE'S $8 MILLION IN THE ARPA MONIES.
RECENTLY, THE CITY WAS ABLE TO TAKE ALL OF OUR WATER SYSTEM AND DIVIDE IT INTO HALF.
THEY CALL THOSE PRESSURE PLANES.
EVEN THOUGH OUR ELEVATION DOESN'T CHANGE MUCH IN LUBBOCK, IT CHANGES.
AS YOU MOVE TO THE NORTHWEST, IT GETS HIGHER, AS YOU MOVE TO THE SOUTHEAST, IT GETS LOWER.
WHEN YOU HAVE A VERY LARGE AREA THAT'S ALL OPERATING AT THE SAME PRESSURE, TO GET ENOUGH PRESSURE TO THE PEOPLE ON THE HIGH END OF THE SYSTEM, YOU'RE GIVING TOO MUCH PRESSURE TO PEOPLE ON THE LOWER END OF THE SYSTEM.
LUBBOCK IS NOW DIVIDED IN TWO, AND IT IS ROUGHLY UP AND DOWN INDIANA.
IT'S NOT EXACT BECAUSE IT GOES AROUND SO IT DOESN'T GET TO THE HOSPITALS AND STUFF LIKE THAT, BUT IT'S BASICALLY ON INDIANA.
TODAY, YOU HAVE A WEST AND YOU HAVE AN EAST. THAT DOES TWO THINGS.
IT ALLOWS US TO KEEP THOSE PRESSURES AT THE PROPER LEVEL FOR BOTH SIDES OF THE MAGIC LINE.
IT ALSO PROVIDES A BIG REDUNDANCY TO YOUR SYSTEM TO WHERE IF NEED BE, YOU CAN CROSS CONNECT THEM.
THAT'S PROBABLY THE WRONG WORD FOR THE ENGINEERS, BUT YOU CAN CONNECT THEM AND PUSH WATER FROM ONE TO THE OTHER IN AN EMERGENCY.
COUNCIL, YOU MAY REMEMBER JUST NOT EVEN A YEAR AGO, WE HAD A MAJOR WATER LINE BREAK.
IT WAS DIFFICULT TO FIND. ULTIMATELY, WE ENDED UP FINDING IT UNDERNEATH A LAKE.
BUT WE WERE ABLE TO KEEP THE PRESSURES UP IN THE SYSTEM BECAUSE WE OPENED THE VALVES FROM THE HIGH PRESSURE SIDE TO THE LOWER PRESSURE SIDE AND KEPT US UP ABOVE THOSE MINIMUMS. WHEN YOU HEAR OF CITIES HAVING BOIL WATER NOTICES, THAT IS CAUSED BY PRESSURE DROPPING BELOW MAGIC NUMBER IN THE REGULATIONS.
THAT'S THE WORLD AS IT EXISTS TODAY.
BECAUSE OF GROWTH AND GROWTH ON THE HIGH PART OF LUBBOCK, WHICH IS THE PART DUE WEST OF US, WE REALLY NEED TO TAKE THE WEST SIDE OF IT TODAY AND SPLIT IT INTO TWO.
THIS PROJECT, WEST LUBBOCK WATER EXPANSION,
[01:05:03]
WILL CREATE A THIRD PRESSURE PLANE ALL THE WAY TO OUR WEST.THINK SOMEWHERE PROBABLY RUNNING UP AND DOWN UPLAND FOR AN EXAMPLE.
THEN WE WILL HAVE A WEST, A CENTRAL AND AN EAST.
SAME BENEFITS, ALL FOR BOTH PARTS.
THE PRESSURE PART OF IT, THE CROSS CONNECTION PART OF IT, TO PROVIDE WATER, KEEP US MOVING.
EXPENSIVE, BUT THIS IS ABSOLUTELY NECESSARY FOR YOUR FUTURE GROWTH AND DEVELOPMENT IN THAT PART OF THE CITY.
>> I SEE A LINE HERE FOR WATER AHEAD OF BROADWAY.
APPROXIMATELY $100,000 HAS BEEN SPENT.
I ASSUME THAT'S FOR SOME PRELIMINARY ENGINEERING OR SOMETHING TO THAT EFFECT.
HOW DOES THIS COME INTO PLAY IF A BOND ISSUE, WHICH WE'LL HEAR ABOUT TOMORROW, I BELIEVE, IS ACCEPTED? ARE WE GOING TO BE ABLE TO FUND THESE NEW WATER LINES IN THE STREET BOND PROGRAM, OR ARE WE GOING TO NEED SOME DOLLARS IN THAT CATEGORY?
>> WE WOULD PREFER IN THE WAY YOU DID IT IN THE 2022 BOND WOULD BE IF YOU'RE FUNDING WATER, YOU FUNDED OUT OF WATER.
YOU'RE FUNDING WASTEWATER OUT OF WASTEWATER, STREETS, OUT OF STREETS.
THIS IS ACTUALLY A HOLDOVER FROM THE 2021 BOND.
AT THAT TIME, WE HAD BOTH DESIGN MONEY AND CONSTRUCTION MONEY.
WHEN THAT BOND DID NOT PASS, THE CONSTRUCTION DOLLARS WENT TO OTHER PROJECTS THAT WE COULD FUND WITH CASH, AND WE LEFT THAT EARLY PRELIMINARY DESIGN MONEY.
BASED ON YOUR ALL'S DISCUSSIONS, TOMORROW, WHICH REALLY YOUR ACTION DISCUSSIONS WOULD BE ON TUESDAY THE 13TH, IF NEED BE, WE WILL START PROGRAMMING CONSTRUCTION DOLLARS, THOSE WOULD NOT HIT THOUGH IN THE FIRST YEAR.
SO YOU HAVE ANOTHER LOOK AT THAT NEXT YEAR. THANK YOU.
>> JERRY, ARE THESE REVENUE BONDS? ARE THEY ALREADY ON THE BOOKS FOR WHAT WE HAVE PROPOSED HERE IN THE DEBT?
>> THEY ARE NOT. THEY HAVE NOT BEEN ISSUED.
IT'S JUST THE WATER IS ONE OF THOSE THINGS YOU TAKE FOR GRANTED AND IT'S BEEN ONE OF THE MOST AMAZING THINGS FOR ME TO TRY TO UNDERSTAND AND GET MY HEAD AROUND IS HOW NOT ONLY IMPORTANT WATER IS, BUT HOW DIFFICULT IT IS TO MANAGE THAT.
AND I THINK A LOT OF TIMES WE JUST TAKE FOR GRANTED, A LOT OF THINGS THAT YOUR CITY DOES FOR YOU, BUT IT'S NOT EASY TO GET WATER TO YOUR HOUSE EVEN IN A FLAT PLACE LIKE LUBBOCK.
THAT'S WHY A LOT OF THESE THINGS ARE VERY EXPENSIVE, BUT ALSO, I JUST WANT TO GO BACK TO SOMETHING A LITTLE BIT EARLIER.
WE GET LESS MONEY WHEN PEOPLE USE LESS WATER, BUT THAT'S A GOOD THING.
CAN YOU JUST TELL US, JERRY, WHERE WE ARE? LUBBOCK DOES VERY WELL ABOUT WATER CONSERVATION, DOES IT NOT?
>> THANK YOU, MARK. WE DO, AND I APPRECIATE THE COMMENTS.
IT'S A GOOD TIME FOR ME TO GIVE A SHOUT OUT.
YOU HAVE GOT MEN AND WOMEN OUT IN THIS AUDIENCE, SOME OF THEM HAVE BEEN WORKING JUST ON THE LAKE SEVEN PROJECT FOR NEARLY 20 YEARS.
SO YOUR ENGINEERING TEAM, YOUR PUBLIC WORKS TEAM, THEY ARE ABSOLUTE MASTERS AT SETTING THIS UP AND LEADING INTO THAT SAME THING.
THE THING WITH WATER IS IT IS A LONG TERM DEAL.
THESE PROBLEMS, THESE ISSUES, THESE OPPORTUNITIES, THEY DON'T COME UP IN A YEAR AND THEY DON'T GET FIXED IN A YEAR.
YOU'VE GOT TO BE 20 PLUS YEARS AHEAD OF IT AND LUBBOCK HAS GOT A HISTORY OF THAT SO THE LUBBOCK CITY COUNCIL, YOUR STAFF.
WE'VE BEEN AHEAD OF THIS FOR A LONG TIME AND YOU STAND IN A VERY GOOD CONDITION.
BACK TO THE WATER USE, YES, THE CHEAPEST WATER WE HAVE IS THE WATER YOU DON'T USE TODAY, BECAUSE IF YOU DON'T USE IT TODAY, IT'S THERE TOMORROW.
THAT'S JUST THE SIMPLE WAY TO SAY THAT.
YOU MEASURE WATER USE BY TAKING THE TOTAL OF YOUR SYSTEM AND YOU DIVIDE IT OUT ON A PER CAPITA BASIS.
WE DID A LOT OF THAT YESTERDAY.
THE MEASURE IS GALLONS PER PERSON PER DAY.
IT WAS NOT THAT LONG AGO THAT LUBBOCK'S GALLONS PER CAPITA PER DAY WERE UP REALLY CLOSE TO 200, NOT AN UNCOMMON NUMBER IN WEST TEXAS, NOT AT ALL.
SINCE THEN, AND SEVERAL THINGS HAPPENED TO EDUCATION, THE PROGRESSIVE BLOCK RATE STRUCTURE THAT WE HAVE ON WATER.
ALL OF THOSE THINGS CAME TOGETHER.
LUBBOCK NOW WILL BE AROUND 130 GIVE OR TAKE, 130 GALLONS PER PERSON PER DAY.
WHERE DOES THAT STAND? IT WILL ABSOLUTELY KEEP YOU IN THE TOP FIVE CONSERVATION LIST IN THE STATE OF TEXAS, AND WE'VE BEEN AS GOOD AS NUMBER 3.
THAT HAS HELPED. PEOPLE DOING THAT HAS HELPED.
IT DOESN'T MEAN YOU DON'T NEED WATER IN THE FUTURE.
IT MEANS WE HAVE A LITTLE MORE TIME TO ADJUST TO IT, TO PLAN FOR IT, TO TRY TO BALANCE EXPENSES ROLLING OFF WITH EXPENSES ROLLING ON.
ANOTHER WAY TO LOOK AT THAT, OUR PEAK HIT US IN 2011.
OF COURSE, 2011 WAS IN SOME WAYS A DROUGHT OF RECORD. IT WAS HOT.
[01:10:02]
IT WAS DRY FOR A VERY LONG TIME.WE USED A VERY LARGE AMOUNT OF WATER.
FAST FORWARD TO 2020 INTO 2021, WE'RE NOW 10 YEARS LATER, WE'VE GROWN THE POPULATION BY SOMETHING APPROXIMATING 30,000 PEOPLE, AND WE STILL USED LESS WATER THAN WE DID IN 2011.
THAT IS A BIG THANKS TO THE PUBLIC IN LUBBOCK, WE APPRECIATE THAT.
ALONG WITH A SHOUT OUT TO THE PEOPLE WHO WORK IN THE WATER DEPARTMENT, SHOUT OUT TO THE CITIZENS OF LUBBOCK FOR DOING THAT.
>> AND WE'VE MENTIONED LAKE SEVEN SINCE THIS IS A PUBLIC MEETING.
IT'S PART OF OUR 100 YEAR WATER PLAN HERE, AND YOU TALK ABOUT HAVING TO LOOK TO THE FUTURE OF HOW WE PLAN TO GET WATER TO PEOPLE, BUT ALSO A PLAN THAT HAVE WATER TO GET TO PEOPLE.
TELL US A LITTLE BIT ABOUT WHERE WE ARE ON LAKE SEVEN AND WHAT WE HOPE THAT WILL ACCOMPLISH.
>> OKAY. WE DO HAVE A 100 YEAR WATER PLAN IN ITS SIMPLEST FORM, IT'S A CHECK REGISTER.
THE DEPOSITS ARE THE WATER RESOURCES THAT WE HAVE TO OUR NAME, AND OF COURSE, THE WITHDRAWALS ARE WHAT WE USE.
WE CAN BALANCE ALL THAT OUT AND IT'S ACTUALLY OVER 100 YEARS NOW.
WHAT HAPPENS IS PERIODICALLY, YOU NEED ANOTHER MAJOR SOURCE OF SUPPLY.
OUR MOST RECENT WAS LAKE ALAN HENRY.
THE PROCESS TO START GETTING THE PERMITS FOR LAKE SEVEN STARTED AT THE VERY END OF 2006, FIRST OF 2007.
WE GOT THE STATE PERMIT FINALLY TWO SUMMERS AGO.
THE SECOND PART OF THAT IS GETTING THE FEDERAL PERMIT, AND WE JUST TALKED ABOUT IT.
LAKE SEVEN WILL BE LOCATED LITERALLY A HALF A MILE EAST OF THE EAST LOOP.
IT'S GOING TO BE VERY CLOSE TO LUBBOCK.
IT IS A UNIQUE LAKE BECAUSE NOW YOU ARE GOING TO RECEIVE THE BENEFIT.
THINK BACK 20 PLUS YEARS AGO WHEN YOUR STORMWATER UTILITY STARTED, AND A LOT OF MONEY.
VERY EXPENSIVE PROJECTS WERE DONE TO GET OUR PRIOR LAKES TO DRAIN INTO NOT FLOOD AREAS.
WELL, THAT DRAINAGE ALL GOES INTO THE CANYON LAKE SYSTEM.
TODAY, IT GOES RIGHT OUT THE BOTTOM OF THE CANYON LAKE SYSTEM.
THAT WON'T HAPPEN. IT'LL ALL BE CAUGHT BY LAKE SEVEN.
WE HAVE SPENT TREMENDOUS AMOUNTS OF MONEY, TENS OF MILLIONS OF DOLLARS IN WASTEWATER, HAVING THE ABILITY TO TREAT WATER TO WHAT WE CALL STREAM QUALITY.
THAT WILL GO INTO LAKE SEVEN AS WELL.
IN OTHER WORDS, YOU'RE GOING TO BUILD A LAKE THAT HAS THE LOWEST LEVEL OF RELIANCE UPON RAINFALL THAT YOU CAN GET AND STILL CALL IT A LAKE.
IT'S GOING TO BE A VERY NEAT THING WHEN IT GETS DONE.
YOU'LL HAVE ACCESS TO WATER VERY CLOSE TO LUBBOCK FOR PEOPLE THAT MAYBE DON'T WANT TO OR CAN'T GO DOWN THE LAKE ALAN HENRY.
YOU'RE GOING TO BUILD A NEARLY PERPETUAL SUPPLY OUT OF A LAKE TO PUT IT INTO YOUR SYSTEM.
AT THE MOST EXTREME CONDITIONS, IT'S GOING TO PRODUCE SOMEWHERE BETWEEN 12 AND 13 MILLION GALLONS A DAY AND THAT'S WHEN EVERYTHING THAT COULD GO BAD WENT BAD.
ON A NORMAL DEAL, IT WILL DO MUCH BETTER.
WOULD ALSO GIVE A SHOUT OUT TO THE COUNCILS THAT APPROVED ALL OF THE MONEY TO GO TO LAKE ALAN HENRY AND TO THE PEOPLE THAT DESIGNED IT.
LAKE ALAN HENRY IS A VERY UNIQUE LAKE IN WEST TEXAS.
WHEN A LAKE IS BUILT, THE MEASURE OF WHETHER IT WORKED OR NOT IS WHETHER THAT LAKE EVER FILLS AND GOES OVER ITS SPILLWAY.
WHEN IT DOES THAT, IT'S WHAT'S CALLED COMING OUT OF ITS CRITICAL PERIOD.
WE FILLED IT COMPLETELY UP, IT TRICKLED OVER THE TOP.
YOURS HAS GONE OVER MULTIPLE TIMES, AND IN FACT, WE SPENT THE LATE PART OF SPRING, VERY EARLY PART OF SUMMER WITH THAT LAKE SITTING AT 103% OF CAPACITY.
THE LAST PROJECT WAS VERY GOOD AND VERY SUCCESSFUL, AND LAKE SEVEN WILL BE THAT AS WELL.
PROBABLY MORE THAN YOU WANTED, MAYOR. MY APOLOGIES.
>> YOU'VE GOT THAT. AND COUNCILS BEFORE US HAVE TAKEN THAT LONG VIEW.
THIS COUNCIL WILL CONTINUE TO MOVE THAT FORWARD, BUT JUST IT'S ALMOST 20 YEARS TO GET THE PERMITTING PROCESS DONE.
WE WERE JUST STARTING ON THAT NOW, WE'D BE LOOKING 20 YEARS FROM.
>> ANOTHER WAY TO LOOK AT IT, PREVIOUS COUNCILS MADE THOSE VERY HARD DECISIONS TO DO THOSE DRAINAGE PROJECTS TO TAKE CREDIT FOR THOSE WATER RIGHTS THAT YOU GAINED BY DOING THOSE.
DEVELOPING WATER IS TWO DIFFERENT DEALS.
SOMEBODY HAS GOT TO ACQUIRE IT, AND THAT'S ONE THING.
SOMEBODY ELSE HAS TO COME ALONG AND DEVELOP IT SO THAT YOU CAN USE IT.
OUR PRIOR LEADERS OF THE COMMUNITY SET UP THAT ACQUIRED PART OF IT NOW FALLS TO THIS GROUP TO DO THE DEVELOPMENT AND WE DO ESTIMATE THAT WE CAN HAVE WATER THERE BY 2032.
MR. ROSE, DID YOU STILL HAVE A QUESTION?
>> A COUPLE MORE ON WATER CAPITAL.
[01:15:03]
WE HAVE PUMP STATION 11 B.THAT'S A MAJOR SYSTEM COMPONENT.
WATER PIPELINE MAINTENANCE FACILITY RENOVATION.
THE FACILITY THAT OUR WATER PIPELINE CREWS OPERATE OUT OF HAS NOT BEEN TOUCHED IN QUITE A WHILE.
WE NEED TO DO SOME WORK OUT THERE.
SAME THING FOR THE WATER METER SHOP.
THAT SHOP WAS BUILT WHEN YOU HAD SIGNIFICANTLY FEWER CONNECTIONS TO YOUR SYSTEM, AND WE HAVE A LOT MORE NOW, SO WE NEED TO KEEP THEM IN THE RIGHT PHASE.
PUMPING SYSTEM IMPROVEMENT PHASE 2, IT'S AN ONGOING PROJECT FOR THAT.
THE EAST 50TH STREET WATERLINE EXTENSION.
THAT IS A BIG MAIN LINE THAT WILL RUN DOWN EAST 50TH.
TODAY, IT'S PRIMARY CUSTOMER, OF COURSE, WILL BE YOUR NEW VETERANS CEMETERY, BUT THAT IS SET UP FOR FUTURE DEVELOPMENT COMING OFF OF IT AS WELL.
SOUTH WATER TREATMENT PLANT TSR, THAT STANDS FOR TERMINAL STORAGE RESERVOIR.
THAT IS THAT LARGE MANMADE DIRT LAKE THAT'S OUT THERE AND MEMBRANE STUDY.
THE MEMBRANES ARE THE ACTUAL DEVICES INSIDE THAT WATER PLANT THAT TAKE LAKE WATER AND TURN IT INTO SYSTEM WATER.
I KNOW SOME OF YOU ALL HAVE HAD A CHANCE TO SEE IT AND EVERYBODY ELSE IS WELCOME TO GO, BUT WE NEED TO GET IN THERE AND KEEP THAT GOING THE WAY IT IS.
PUMP STATION 12, STORAGE TANK INTERIOR PAINTING, IT'S A MAINTENANCE ITEM.
WE KEEP SOME MONEY SET ASIDE EVERY YEAR FOR WHAT WE CALL WATER LINE LOOPING, AND THAT'S EXACTLY WHAT IT MEANS, TRYING TO CONNECT LINES SO THAT WE DON'T HAVE DEAD ENDS IN THE SYSTEM.
THEN SWTP MEMBRANE BUSH WASH PRE-TREATMENT THAT IS ALSO SOUTH WATER TREATMENT PLANT, AND THIS IS A RECOMMENDED IMPROVEMENT TO EXTEND THE LIFE OF OUR MEMBRANE.
IT'S A DIFFERENT WAY OF CLEANING THE MEMBRANES.
THINK ABOUT AN RO SYSTEM WHERE IT HAS TO BACKFLUSH OR A POOL SYSTEM.
THAT'S SIMILAR TO WHAT THIS IS JUST AT A MUCH HIGHER SCALE.
YOUR ALL IN TOTAL FOR WATER CAPITAL IS 67.9, 10.6 IS CASH OUT OF THIS FUND, AND THEN 57.2 IN YOUR REVENUE BONDS. ANY WASTEWATER? JUMP INTO WASTEWATER.
START DOWN TOWARDS THE BOTTOM, MAN HOLE REPLACEMENT ON INTERCEPTORS.
INTERCEPTORS ARE YOUR VERY LARGE SEWER LINES, AND THEY'RE ALL GRAVITY LINES.
AS YOU MIGHT EXPECT, EVERYTHING ASSOCIATED WITH ONE OF THOSE LINES LIVES IN A VERY TOXIC ENVIRONMENT, AND YOU WILL PERIODICALLY BE REPLACING YOUR VAULTS, YOUR MANHOLES, YOUR COVERS, THINGS LIKE THAT.
SEWER LINE REPLACEMENTS, JUST LIKE THE ANNUAL WATER LINE REPLACEMENTS, SAME LOGIC. SEWER TAP REPLACEMENTS.
WE'VE HAD PLENTY OF DISCUSSION ON THAT.
WE'LL HAVE SOME MORE IN THE FUTURE.
MOVING OVER SEWER AHEAD OF STREET PAVEMENT.
YOU WILL SEE A LOT OF THESE PROJECTS THAT MIRROR THE WATER PROJECTS.
THEY'RE ALL IN THE SAME PLACE.
SOUTHWEST LUBBOCK SANITARY SEWER EXPANSION, THAT IS THE BIG SYSTEM.
TODAY, IT IS SITTING ROUGHLY AT WHAT WOULD BE THE NEW LOOP 88 AND FRANKFORD.
THAT LINE NEEDS TO CONTINUE TO PUSH TO THE WEST.
THIS IS NOT FULL FUNDING FOR IT.
WE MAY OR MAY NOT START IT IN THE NEXT YEAR.
IF WE'RE NOT GOING TO, WE WILL NOT ISSUE THE BONDS THAT GO WITH THAT.
WASTEWATER COLLECTION SYSTEM MAINTENANCE, WATER RECLAMATION PLANT REPLACEMENT, BOTH OF THOSE JUST ONGOING SYSTEM ITEMS. SEWRP, THAT IS THE SOUTHEAST WATER RECLAMATION PLANT.
THAT IS YOUR LARGE ONE, THAT'S THE ONE DOWN BY LAKE 6.
THIS IS THE PRIMARY CLARIFIER IS A MAIN PART OF THE TREATMENT SYSTEM.
ALSO LIVES IN A VERY TOXIC ENVIRONMENT AND IT NEEDS TO BE REHABILITATED.
LIF STATION REHABILITATION, SAME THING.
WE HAVE SEVERAL IN THE SYSTEM.
WE HAVE NUMEROUS IN THE SYSTEM, AND THESE ARE THE DOLLARS WE NEED EACH YEAR TO KEEP THEM UP AND RUNNING.
BACK TO THE SOUTHEAST WATER RECLAMATION PLANT, HEADWORKS IMPROVEMENT.
THAT'S THE DEVICE, THE MECHANISM WHERE ALL OF THE RAW EFFLUENT, THE RAW SEWAGE IS COMING INTO THE PLANT AND THEN IS DIVERTED INTO THE VARIOUS PIECES FOR THE TREATMENT.
SEWER LINE UPSIZING FOR DEVELOPMENT.
YOU DIDN'T SEE NEW MONEY FOR WATERLINE UPSIZING FOR DEVELOPMENT BECAUSE THERE'S A LITTLE MONEY THERE.
THIS IS WHERE IF A DEVELOPER IS BEING REQUIRED TO LAY A LINE.
FOR SAKE OF EXAMPLE, THEY NEED A 10 INCH LINE TO SERVE THEIR DEVELOPMENT.
[01:20:01]
BUT WE KNOW THAT THAT LINE EVENTUALLY WILL GO FURTHER THAN WHERE THEY ARE, AND TO MAKE IT GO FARTHER AND SERVE MORE, MAYBE IT NEEDS TO BE A 12 INCH OR A 14 INCH.THIS GIVES THE CITY THE ABILITY TO SAY, YOU ONLY NEED A 10, YOU ONLY PAY FOR A 10.
WE'LL GO AHEAD AND PUT THE DOLLARS IN TO UPSIZE IT SO THAT IT'S AVAILABLE DOWN THE LINE, WELL, WE DON'T DO PRO RATA ANYMORE FOR US.
WE DO IT FOR DEVELOPERS, BUT ALLOWS YOU TO KEEP MOVING AT A MUCH LOWER COST.
YOU SEE THE TAG THERE AT THE BOTTOM IN THE FUNNY BLUE COLOR.
THAT'S 50 CENTS OF YOUR RATE INCREASE.
IT IS IN THAT CAPITAL PROJECT THAT SAID ONE MILLION FOR SEWER LATERALS.
TO CONTINUE, HERE'S YOUR INDIVIDUAL FEE CHANGES. I'M SORRY. GO AHEAD.
>> YEAH. IF YOU COULD BRIEFLY TELL US ABOUT WHAT THE NEW PROGRAM IS LOOKING LIKE, THIS 50 CENT RATE INCREASE IS GOING.
>> AT THE MOMENT, BASED ON OUR LAST DISCUSSIONS, THAT IS THE DOLLARS THAT WOULD CREATE AN ASSISTANCE FUND THAT WOULD BE AVAILABLE TO PEOPLE WHO COULDN'T AFFORD IT.
HOW IT ULTIMATELY WORKS IS STILL UP TO THE COUNSEL?
THAT TOP LINE, WATER METER SET FEES, THAT'S ACTUALLY A REVENUE ACCOUNT.
MOVING BELOW THAT TO WASTEWATER FEES.
THESE ARE SOME CHANGES FIRST IN THE SEWAGE DISPOSAL, SO INDUSTRIAL, SEPTIC HAULERS.
WHEN WE HAVE TO GET IN AND CLEAN THE SEWER LINES ON BEHALF OF OTHERS, THAT'S FOR SENDING IN SOMEBODY WITH AN AIR-PACK TO DO THAT WORK.
THE CATTLE GRAZING FEE, THAT IS ACTUALLY A LEASE CONTRACT THAT YOU HAVE, AND I BELIEVE THIS ONE IS ON THE HANCOCK FARM SOUTHERN.
THAT'S ACTUALLY IN A LEASE THAT WAS JUST RENEWED, AND SO THESE ARE YOUR UPDATED NUMBERS THAT GO WITH THAT.
THEN YOU SEE THE BASE RATE, THERE IS YOUR $1 ON THE THREE QUARTER INCH METER AND HOW THAT RATIOS OUT FOR THOSE BELOW IT.
SURCHARGE FEES, TOTAL SUSPENDED SOLIDS, GREATER THAN 250 MILLIGRAMS PER LITER PER POUND.
THIS IS A SURCHARGE, IT'S AN ADDITIONAL FEE.
THIS MAY MAINLY ONLY BE FOR INDUSTRIAL TYPE USERS OR CERTAIN OTHERS, BUT MAINLY INDUSTRIAL, WHERE IF THE WASTE THAT THEY ARE SENDING US IS ABOVE OUR STANDARD TREATMENT LIMITS, THAT ACTUALLY CAUSES A LOAD ON THE FACILITY, AND IT COSTS US MORE TO TREAT THAT.
THAT'S WHAT THAT IS. SECOND LINE ITEM IS THE SAME DEAL.
IT'S JUST A DIFFERENT METRIC AND THAT'S YOUR BIOCHEMICAL OXYGEN DEMAND. SAME DEAL THERE.
YOUR SEPTIC LOAD FEES, WE ARE ADJUSTING THE HAULER PERMIT FEES, BUT YOU STILL HAVE UNDERNEATH HERE, YOUR TOTAL SUSPENDED SOLIDS, YOUR BIOLOGICAL OXYGEN, SO THOSE LOADS CAN BE CHECKED, AND THEN THE DUMPING FEE PER TIME WITH A HIGHER RATE PER WEEKEND.
WE DO HAVE HAULERS THAT HAVE TO COME IN ON THE WEEKEND.
WE HAVE TO BE ABLE TO HAVE EXTRA STAFF THERE TO TAKE THOSE. THAT'S WHAT THAT IS.
ANY QUESTIONS ON THAT? MAYOR, YOUR NEXT ONE WILL BE LUBBOCK POWER AND LIGHT.
YOU HAVE MR. JOE JIMENEZ AND JOE IS GOING TO WALK YOU THROUGH THE LP&L BUDGET FOR THE YEAR.
>> WELL, GOOD AFTERNOON, MAYOR AND COUNCIL. CAN YOU HEAR ME, IS THIS ON? AS YOU ALL KNOW, THIS HAS BEEN A VERY BUSY YEAR FOR US AS WE'VE OPTED INTO THE RETAIL MARKET.
NO LONGER DO WE OPERATE AS A VERTICALLY INTEGRATED UTILITY.
WE OPERATE MORE AS A POLES AND WIRES COMPANY, ALSO KNOWN IN THE MARKET AS A TRANSMISSION AND DISTRIBUTION UTILITY.
I'M HAPPY TO SAY THAT, WE'VE PRESENTED A BALANCED BUDGET FOR FISCAL YEAR '24-'25.
ANOTHER THING, ONE THING WE NEED TO KNOW THAT IS WE'LL BE OPPOSING MYRES COMPANY MOVING FORWARD.
THE REPS WILL BE THE RETAIL ELECTRIC PROVIDERS AND THEY'LL HANDLE THE ENERGY FOR THAT COST.
BUT WITH THAT BEING SAID, REALLY SHIFTING TO THE ERCOT MARKET HAS REALLY HELPED US AND ASSISTED US IN OUR FINANCIAL MODEL, OF COURSE, THE PCRF RATES, AS YOU CAN SEE.
IN OUR REVENUE SUMMARY, OUR REVENUES HAVE DECREASED 254 MILLION TO 180.5 MILLION.
AGAIN, THE MAJOR DRIVER OF THIS IS THE PURCHASE POWER COST.
AS WE MENTIONED, THAT WAS THE MOST VOLATILE PART OF OUR ORGANIZATION, AND WHAT WE HAVE DONE IS WE HAVE SHIFTED THAT COST TO THE RETAIL ELECTRIC PROVIDERS.
THE RETAIL ELECTRIC PROVIDERS NOW HANDLE THE ENERGY COST AND WE JUST ARE
[01:25:01]
RESPONSIBLE FOR DELIVERING THAT ENERGY TO THE END CONSUMER.OUR METER REVENUES HAVE DECREASED 30.6 MILLION.
AGAIN, THAT'S ZERO FOR NEXT FISCAL YEAR AS THESE ARE REVENUES GENERATED FROM OUR OLD BASE RATES AND SO THOSE COST HAVE REALLY SHIFTED TO OUR DISTRIBUTION SYSTEM REVENUE.
THEY HAVEN'T REALLY GONE AWAY.
WE JUST COLLECTED THEM IN A DIFFERENT METHOD THROUGH OUR DELIVERY RATE.
AS YOU CAN SEE OUR DISTRIBUTION SYSTEM REVENUES HAVE INCREASED 59.9 MILLION FOR A TOTAL OF ABOUT $133 MILLION ANNUALLY.
THESE ARE THE FEES THAT WE WILL COLLECT THROUGH THE DELIVERY RATE MOVING FORWARD.
THIS INCREASE OF 59 MILLION IS NOT RELATED TO ANY RATE INCREASES IN OUR DELIVERY RATE.
WHAT THIS IS IS IN FISCAL YEAR '24, WE COLLECTED FIVE MONTHS OF REVENUE AND IN FISCAL YEAR '25, WE WILL COLLECT A TOTAL 12 MONTHS OF REVENUE THROUGH THE DELIVERY RATE.
OUR FRANCHISE FEE EQUIVALENT HAS INCREASED $500,000 TO A TOTAL OF $13.1 MILLION.
THIS IS TRANSFERRED TO THE CITY.
THE REASON FOR THE INCREASE OR THE DRIVER OF THIS INCREASE IS STRICTLY RELATED TO LOAD GROWTH.
OUR TRANSMISSION COST OF SERVICE REVENUES HAVE DECREASED $5.8 MILLION TO APPROXIMATELY $38.8 MILLION ANNUALLY.
AGAIN, THESE ARE THE TRANSMISSION COSTS THAT WE RECEIVE FROM THE OTHER TDUS IN THE MARKET THAT THEY PAY US BACK FOR UTILIZING OUR TRANSMISSION INFRASTRUCTURE.
AGAIN, THIS 38.5 MILLION HAS NOT BEEN APPROVED BY THE PUBLIC UTILITY COMMISSION AS OF YET.
BUT HOWEVER, WE FEEL COMFORTABLE THAT THIS NUMBER OF THE 38.5 IS GOING TO BE REALLY CLOSE IN THE BALLPARK TO WHAT WE EXPECT FOR THE FINAL RULING FROM THE PUBLIC UTILITY COMMISSION.
OUR EXCESS RESERVES HAVE INCREASED $4.6 MILLION A YEAR OVER YEAR, AND YOU CAN SEE THAT THE MAJORITY OF THAT WAS UTILIZED TO FUND A ONE TIME PAYMENT OF $7.1 MILLION TO PAY OFF SERIES OF 2015 REVENUE BONDS.
ANY QUESTIONS ON THE REVENUES? MOVING FORWARD, AS I MENTIONED, WE HAVE A BALANCED BUDGET, SO YOU'LL SEE THAT OUR EXPENSES MATCH OUR REVENUES.
OUR EXPENSES IN THE SAME MANNER, WENT FROM 254 MILLION DOWN TO $180.5 MILLION.
AGAIN, THE MAJOR DRIVER OF THIS IS YOUR ENERGY AND FUEL COSTS.
AS I MENTIONED, THAT IS NOW HANDLED BY THE RETAIL ELECTRIC PROVIDERS, THAT IS THE BIG DECREASE IN OUR EXPENSES.
AGAIN, AS MR. ATKINSON MENTIONED YESTERDAY, OVER THE LAST COUPLE OF MONTHS, WE HAVE HAD TWO RATING INCREASES FROM TWO DIFFERENT RATING AGENCIES.
AGAIN, THIS IS DIRECTLY RELATED TO US ACHIEVING WHAT WE SAID WE'RE GOING TO DO AND ENTER THE RETAIL MARKET, ALONG WITH ELIMINATING OUR PURCHASE POWER COSTS.
OVER THE PAST COUPLE OF YEARS, OUR PURCHASE POWER COSTS HAVE BEEN NORTH OF $200 MILLION.
WHEN YOU THINK ABOUT IT AND YOU BACK THAT OUT OF YOUR FINANCIAL MODEL, THAT REALLY ALLEVIATES A LOT OF RISK TO THE UTILITIES.
THOSE ARE SOME OF THE REASONS THE RATING AGENCIES HAVE UPGRADED AND NOT ONLY THAT, BUT WE PROJECTED A FIVE YEAR PLAN TO GET INTO THE RETAIL MARKET AND WE ACTUALLY EXECUTED IT IN THE MANNER THAT WE SAID WE WERE GOING TO DO.
AGAIN, OUR COMPENSATION AND BENEFITS, THEY REMAINED RELATIVELY FLAT.
THEY WENT UP ABOUT $1.2 MILLION, ABOUT 975,000 OF THAT IS RELATED TO THE 4% COST OF THE LIVING ADJUSTMENT THAT WE HAVE PUT IN THE BUDGET.
WE DO SHOW A NET DECREASE OF SEVEN FTES IN OUR BUDGET.
HOWEVER, WE REPURPOSE SEVEN POSITIONS IN OUR FTE COUNT.
WHAT THIS IS IS, AS WE START WORKING AND KNOWING MORE ABOUT THE ERCOT RETAIL MARKET, WE HAVE EMPLOYEES THAT HAVE TO HAVE HIGHER PAID POSITIONS.
FOR EXAMPLE, THEY HAVE TO HAVE COMPLIANCE, THEY HAVE TO HAVE ERC CERTIFICATION.
WHAT WE'VE DONE IS WE'VE ELIMINATED SOME OF THE LOWER LEVEL EMPLOYEES THAT WERE VACANT POSITIONS, SO NONE OF THESE POSITIONS WERE FILLED, WE JUST TOOK THOSE POSITIONS AND REPURPOSE THEM AND USE THEM TO PAY FOR SOME HIGHER PAID POSITIONS.
IT'S REALLY NOT A ONE FOR ONE MATCH.
LOWER SALARIES IN THE $20,000 RANGE AND THE NEW STAFF THAT IS REQUIRED IS ABOUT 60 AND $60,000 RANGE.
AGAIN, YOU'LL SEE THAT THIS'S NOT A ONE FOR ONE MATCH, AND THAT'S WHY EVEN THOUGH WE HAVE A NET DECREASE OF 17 FTE WE STILL HAVE A SLIGHT INCREASE IN OUR COMPENSATION AND BENEFITS.
OUR TRANSMISSION COSTS DECREASED $10.7 MILLION AS COMPARED TO LAST YEAR.
IF YOU REMEMBER LAST YEAR, UP TO DECEMBER 2023, WE HAD 30% REMAINING IN SOUTHWEST POWER POOL, AND 70% WAS IN ERCOT.
WE WERE PAYING TRANSMISSION COSTS IN BOTH MARKETS LAST YEAR IN THE SOUTHWEST POWER POOL AND THE ERCOT MARKET.
BUT MOVING FORWARD AS WE MOVED ALL OUR LOAD TO THE ERCOT MARKET,
[01:30:01]
THOSE SPP TRANSMISSION COSTS HAVE BEEN ELIMINATED, AND THESE ARE STRICTLY RELATED TO OUR TRANSMISSION COSTS IN ERCOT.OUR DEBT SERVICE DID INCREASE 11.6 MILLION YEAR OVER YEAR AND AS MR. ATKINSON MENTIONED EARLIER, WE ISSUED DEBT FOR $65.7 MILLION TO FUND THE EARLY TERMINATION OF THE SOUTHWEST POWER POOL PARTIAL REQUIREMENTS AGREEMENT.
ALSO, WE DECIDED TO MAKE A ONE TIME PAYMENT OF $7.1 MILLION TO ELIMINATE 2015 SERIES REVENUE BONDS.
THIS YEAR, THEY WERE CALLABLE SO WE DECIDED THAT IT WAS IN THE BEST INTEREST OF THE UTILITY TO PAY THOSE OFF WITH EXCESS GENERAL RESERVES THAT WE HAD.
WE PAID THAT OFF AND SO THOSE ARE COMING OFF OUR BOOKS, AND THAT'S GOING TO SAVE US INTEREST COSTS IN THE FUTURE.
OUR FRANCHISE FEE INCREASED SLIGHTLY BY 434,000.
AGAIN, THIS IS JUST THE TRANSFER THAT WE COLLECT AND TRANSFER TO THE CITY FROM THE DELIVERY RATES, AND THE INCREASE IS STRICTLY DRIVEN BY LOAD INCREASE.
OUR PILOT DID INCREASE $1.26 MILLION FOR A TOTAL OF $3.7 MILLION.
AGAIN, IF YOU REMEMBER PRIOR TO THIS BUDGET, WE USED TO PAY 1% OF OUR METER REVENUES, THAT WAS A PILOT THAT WE WOULD TRANSFER TO THE CITY.
HOWEVER, THAT HAS CHANGED AND NOW WE'RE PAYING AN AD VALOREM TAX CALCULATION BASED ON OUR LP&L ASSETS.
AGAIN, OVER THE LAST THREE YEARS, WE'VE REALLY BEEFED UP OUR TRANSMISSION AND DISTRIBUTION SYSTEM.
THOSE ASSETS HAVE REALLY INCREASED YEAR OVER YEAR, AND SO THIS IS A REVENUE THAT THE CITY IS OWED DUE TO THAT TAX CALCULATION.
FINALLY, OUR THE TRANSFER TO CASH DECREASED $3.6 MILLION.
WE STILL HAVE THE SAME AMOUNT OF CAPITAL PROJECTS AS IT WAS IN LAST YEAR'S BUDGET, WHICH IS ABOUT $27.3 MILLION ANNUALLY.
HOWEVER, WE HAD SOME UNALLOCATED BONDS USED FROM CLOSED PROJECTS IN PRIOR YEARS THAT TOTALED ABOUT 6.5 MILLION.
THAT'S THE REASON YOU SEE THE DECREASE IN CASH TO THE CIP.
I'M HAPPY TO SAY THAT OUR FINANCIAL MODEL, CAPITAL PLAN IN FIVE YEARS LOOKING OUT, THERE'S NO DEPTH ANTICIPATED TO BE ISSUED FOR THAT.
ALL OUR PROJECTS AVERAGING ABOUT $33.5 MILLION ANNUALLY HAS BEEN ALL CASH FUNDED IN OUR FINANCIAL MODEL.
>> JOE, DR. WILSON HAD A QUESTION, I THINK.
>> JOE, I GOT A QUICK QUESTION FOR YOU.
FOR YOUR PAYOFF FOR YOUR DEBT SERVICE EITHER WE INCREASE ON DEBT SERVICE, THE 65.7.
THE NUMBER DOESN'T MATCH THE NUMBER THAT WE GOT YESTERDAY, THE 52.
I'M TRYING TO FIGURE OUT WHERE THE DIFFERENCE IS.
>> IT'S THE DIFFERENCE BETWEEN THE PAR ON THE BOND VERSUS THE TOTAL THAT YOU ACTUALLY ISSUED THE DEBT FOR.
THERE'S A PREMIUM ON THE BOND AND A PAR ON THE BOND.
THE PREMIUM IS THE BALANCE OF THAT.
WHAT IT MEANS IS WE ACTUALLY ENTERED INTO A FAVORABLE MARKET, SO YOU ONLY HAD TO SELL 52 MILLION IN PAR TO GET TO THAT.
>> AGAIN AS YOU ALL KNOW, THE ENTERPRISE MODELS, THEY FORECAST A FIVE YEAR OUT, SO YOU JUST KNOW THAT YOU'RE NOT BUDGETING FOR NEXT FISCAL YEAR.
YOU CAN SEE THE UTILITY CASH FUNDING OUR CAPITAL PROJECTS IN THE NEXT FIVE YEARS SHOWS THAT WE HAVE A REALLY HEALTHY FUND IN OUR BUDGET.
AS YOU CAN SEE AT THE BOTTOM, YOU'LL SEE OUR GENERAL RESERVES ARE ALL ABOVE POLICY LEVEL.
AGAIN, WE HAVE 25% OF OUR EXPENSES IS OUR GENERAL POLICY LEVEL.
WE'RE ABOVE THE POLICY LEVEL IN MOST FUTURE YEARS.
WE ARE UTILIZING GENERAL RESERVES TO CASH FUND THESE CAPITAL PROJECTS, BUT IT'S STILL KEEPING US ABOVE THE POLICY LEVEL THAT IS REQUIRED FOR THE UTILITY.
THIS IS WHERE I WAS TALKING ABOUT.
YOU'LL SEE THE VERY LAST LINE, YOUR GENERAL RESERVE EXCESS DEFICIT.
YOU CAN SEE THAT THAT NUMBER RIGHT THERE, FOR EXAMPLE, NEXT YEAR, WE ARE $48 MILLION ABOVE POLICY LEVEL, SO IT'S JUST A GOOD POSITION THAT WE'RE IN RIGHT NOW AS A UTILITY.
AGAIN, THE TRANSITION TO THE RETAIL MARKET WAS A LONG TIME COMING, BUT IT'S BEEN A GREAT DECISION.
IT REALLY TAKES OUT THE MOST VOLATILE PART OF OUR ORGANIZATION, WHICH WAS PURCHASE POWER COST.
THE RETAIL ELECTRIC PROVIDERS MOVING FORWARD WILL HANDLE THOSE PURCHASE POWER COSTS AND WE WILL SOLELY BE RESPONSIBLE FOR DELIVERING THAT ENERGY TO THE CUSTOMERS OR ANY CUSTOMER THAT'S IN LP&L CERTIFIED TERRITORY. ANY OTHER QUESTIONS?
[01:35:06]
>> ANY QUESTIONS? THANK YOU, JOE. MS. MARTINEZ GARCIA.
>> IT'S NOT MUCH OF A QUESTION.
IT'S JUST YOU GUYS HAVE REALLY DONE A GREAT JOB IN FORECASTING, AND GETTING US TO WHERE WE ARE.
THANK YOU FOR THE HARD WORK BECAUSE I KNOW IT HAS NOT BEEN EASY.
A LOT OF PUBLIC CRITICISM AT TIMES, BUT NOW WE'RE STARTING TO SEE THE MARKET, AND PEOPLE ARE STARTING TO UNDERSTAND THE CHANGES.
STILL HEARING A FEW COMPLAINTS BUT THANK YOU.
>> I UNDERSTAND BUT TO YOUR POINT, IT'S OVERALL TEAM EFFORT.
YOU DON'T REALIZE HOW MUCH WORK GOES INTO THIS, EVEN YOUR SMART METER TEXTS, YOUR COMMUNICATION WITH ERCOT, SO IT REALLY IS A TEAM EFFORT WITH THE ADMINISTRATION, AND EVEN YOUR CUSTOMER SERVICE FUNCTIONS.
>> I SEE MR. COLLINS, MAY HAVE A QUESTION FOR YOU, JOE.
>> WELL, ACTUALLY MAYBE FOR JOE, ANY WORD FROM THE PUC? YOU CAN KEEP YOUR SEAT.
>> ANY WORD FROM THE PUC REGARDING THE TRANSMISSION COST OF SERVICE RATE STUDY OR YOU HAD UP THERE.
TOMORROW, WE'RE EXPECTING TO FIND OUT WHETHER OR NOT WE'RE GOING TO BE ON THE AGENDA FOR THE 15TH NEXT WEEK.
IT'S AN EIGHT DAY LAG WHEN THEY GOT TO POST THAT.
WE'RE THINKING WE MIGHT NOT BE BECAUSE OF HURRICANE BERYL.
THEY'VE GOT SOME BIGGER FISH TO FRY AT THE MOMENT, SO IT MAY GET PUSHED ANOTHER COUPLE OF WEEKS EVEN.
>> GREAT. WE'LL JUMP BACK OVER AND START STORMWATER.
THE REVENUE INCREASE IS BASED ON GROWTH.
IT IS NOT BASED ON A CHANGE TO THE RATE.
COUNCIL, REMEMBER THAT LAST YEAR, THE CURRENT YEAR, YOU DID DECREASE THE STORMWATER RATE.
OUR INTEREST EARNINGS WILL GO DOWN SLIGHTLY, AND THAT IS BECAUSE WE ARE USING CASH TO GO THROUGH OUR PROJECTS.
THIS IS THE REVENUE SIDE OF IT.
WE'LL MOVE OVER NOW TO THE EXPENSE SIDE OF IT.
VERY SLIGHT INCREASE IN COMPENSATION AND BENEFITS, AGAIN, PRETTY MUCH THE SAME THING.
WE ARE COMING UP IN MAINTENANCE AND OPERATIONS, FUEL, VEHICLE MAINTENANCE, TRAINING, LIABILITY INSURANCE.
THE DEBT SERVICE IS INCREASING TO ACCOMMODATE NEW DEBT, THAT'S FROM THE YEAR AGO, I BELIEVE.
FRANCHISE FEES ARE BASED ON THE REVENUE, SO THAT IS WHY THAT CHANGES.
THIS IS ONE OF THE TWO DEPARTMENTS THAT SAW A DECREASE IN HOW WE ALLOCATED THE BILLING COST, BECAUSE AGAIN, WE'VE MOVED IT TO A REVENUE SYSTEM.
THEN THE TRANSFERS ARE GOING UP REALLY BECAUSE OF CAPITAL FUNDING, CAPITAL PROJECTS, AND VEHICLES. WE'LL MOVE OVER.
THIS WILL LOOK A LOT LIKE WATER AND WASTEWATER.
YOU'VE GOT APPROXIMATELY 929,000 IN INTEREST, 22.9 IN REVENUE FROM JUST GENERAL CONSUMERS, AND THEN DEPARTMENT OPERATIONS, AND THAT DEPARTMENT OPERATION NUMBER STAYS CLOSE TO THAT 20,000 OVER TIME.
MOVE OVER THERE. NOW YOU CAN SEE YOUR EXPENSE LINES AS YOU GO DOWN THE PAGE.
BOTTOM LINE FOR TOTAL EXPENDITURES IS 25.7 MILLION IN THE NEW YEAR VERSUS 23.4 IN THE PRIOR YEAR.
THAT DOES GIVE US A LINE ITEM TO WHERE OUR EXPENSES ARE OVER OUR REVENUES.
THAT IS WHERE YOUR FUND BALANCE COMES IN AND GETS PUT TO WORK.
TOWARDS THE BOTTOM OF THE PAGE, YOU SEE THAT.
WE HAD TOTAL EXCESS RESERVES ENDING THE PRIOR YEAR AT 4.46, GIVING US A TOTAL AVAILABLE NUMBER OF 7.3.
AFTER WE BALANCE OUT THIS YEAR'S BUDGET, YOU END AT 2.7 MILLION.
HERE ARE YOUR RATES TOWARD THE BOTTOM OF THE SCREEN.
AGAIN, THERE ARE NO CHANGES TO THOSE RATES.
WE'LL LOOK AT CAPITAL AND STOP ME AT ANY TIME.
THE FIRST PROJECT WE NEED TO FUND IS THE UPDATES TO THE WATERSHED BOUNDARIES AND TO THE DRAINAGE STUDIES.
WE HAVE STORMWATER VAULT IMPROVEMENTS.
WE HAVE BEEN ABLE TO MAKE SEVERAL OF THOSE OVER THE LAST FEW YEARS.
LARGE EXPENSE FOR TOPOGRAPHIC INFORMATION ACQUISITIONS.
WE TALKED ABOUT PART OF THE COUNTY IS HIGHER, PART OF THE COUNTY IS LOWER.
THE TOPOGRAPHY IS WHAT DEFINES HOW THE WATER MOVES.
WE UPDATE THAT ON A PERIODIC BASIS.
[01:40:01]
IT'S ACTUALLY DONE FROM AN AIRPLANE.IT'S PRETTY UNIQUE TECHNOLOGY, BUT IT'S PRETTY EXPENSIVE TECHNOLOGY.
CARRYING OVER TO THE NEXT PAGE, GENERAL CARE AND FEEDING OF YOUR STORMWATER SYSTEM AT 650,000 DRAINAGE IMPROVEMENTS ON ARTERIALS IN THE AMOUNT OF ONE MILLION.
CANYON LAKE NUMBER 6 DAM EVALUATION AND IMPROVEMENTS.
THAT IS ACTUALLY ON THE DOWNSTREAM SIDE.
IT'S NOT THE PART OF THE DAM THAT HOLDS WATER.
IT'S ONE OF THE SKIRTS OR THE APRONS THAT'S ON THE BACK OF THE ROAD.
WE'RE STARTING TO GET SOME UNDERCUT THROUGH THERE, AND THAT NEEDS TO GET LOOKED AT AND THEN FIXED.
THEN THE STORMWATER PIPE INSPECTION IS EXACTLY WHAT THAT SOUNDS LIKE.
YOUR TOTAL STORMWATER THIS YEAR IS 4.4.
LET ME SPEAK, ESPECIALLY FOR OUR NEW ONES, WHAT WE'RE DOING WITH STORMWATER.
THE STORMWATER UTILITY WAS CREATED IN THE EARLY 2000S, AND THAT IS WHAT PAID FOR ALL OF THOSE LARGE DRAINAGE PROJECTS TO KEEP THE PLAYERS FROM OVERFLOWING AND GET THE WATER DOWN TO THE CANYON LAKES.
AS SUCH, FOR A NUMBER OF YEARS IN STORMWATER, THIS REALLY FUNCTION TO WHERE 70 PLUS PERCENT OF ITS REVENUE WAS DEBT SERVICE.
DIDN'T LEAVE A LOT FOR MAINTENANCE.
AS THAT DEBT SERVICE IS FALLING OFF, WE'RE ABLE TO BOTH REDUCE RATES AND GENERATE CASH TO DO THE MAINTENANCE ON THE SYSTEM.
WE'VE BUILT IT, AND NOW WE NEED TO TAKE CARE OF IT.
NONE OF THAT STUFF LASTS FOREVER.
THERE HAVE ONLY BEEN IN THE LAST FEW YEARS VERY MINOR, AND THE MOST RECENT DEBT WE ISSUED WAS AS WE TALKED ABOUT YESTERDAY, THE BLUE SKY OR THE PLY LAKE OVER THERE THAT DRAINS TEXAS TECH.
AGAIN, THAT WATER IS ALSO GOING TO GO TO THE CANYON LAKES AND ALSO GOING TO GO TO LAKE 7.
THIS ONE'S BEEN A LONG TIME COMING.
SOME FOLKS STEPPED OUT AND DID A LOT OF VERY EXPENSIVE WORK, PRODUCED A LOT OF BENEFIT.
BUT YOU'RE NOW SEEING THAT SYSTEM MATURE TO WHERE THE DEBT SERVICE GOES DOWN, THE DOLLARS AVAILABLE FOR MAINTENANCE GOES UP.
PLUS YOU NOW HAVE THAT WATER FOR LAKE 7.
THIS ONE HAS WORKED. BUT AGAIN, AS THE MAYOR POINTED OUT EARLIER, IT DOESN'T HAPPEN QUICKLY.
HAPPENS OVER TIME. ANY QUESTIONS ON STORMWATER BEFORE WE GO TO THE ALAN LAKE.
>> MR. ATKINSON, JUST LOOKING BACK ON THE LINE ITEM PAGE, GO BACK A COUPLE OF SLIDES. THAT ONE.
LOOKING AT FOR THE FISCAL YEAR '26 DOWN THERE, IS THAT AS WE LOOK AT OUR RESERVE POLICY? IS THAT GOING TO PUT US BELOW THE RESERVE REQUIREMENTS NEXT YEAR OR WE'RE GOING TO HAVE DEBT FALL OFF TO WHERE WE DON'T END UP IN THAT POSITION?
>> YOU'RE ON THE FY26 LINE? GOOD CATCH ON THAT. YOU'LL SEE THIS IN SEVERAL OF THE MODELS.
WE WILL DIP OR WE PREDICT THAT WE WILL DIP 113,000 BELOW OUR REQUIRED RESERVES.
IF THIS FUND STILL LOOKS LIKE THIS FOR FY26, WE WILL LIKELY ADJUST THE EXPENSE THAT WE PUT OUT SO THAT IT DOESN'T.
BUT I WOULD NOTE AND YOU'LL SEE THIS TWICE IN THOSE FIVE YEARS, IF ALL THE FIVE YEARS NOTHING CHANGES, WHILE YOU DIP BELOW, YOU COME BACK ABOVE IMMEDIATELY IN THE NEXT YEAR, AND THEN IT SLIGHTLY LESS BELOW AND THEN BACK UP SIGNIFICANTLY.
YOUR BIG PAYOFFS, WHICH MEANS NOW YOU HAVE EVEN MORE CASH, YOU'RE GOING TO GET THE BENEFIT OF THAT IN THE FISCAL YEAR '29.
IT'S ALSO A POINT THAT I THINK YOU'LL BE ABLE TO START MODELING ADDITIONAL RATE DECREASES INTO THAT SYSTEM.
RUN DOWN THE LEFT SIDE OF THAT.
LAKE ALAN HENRY IS A RELATIVELY SMALL BUDGET COMPARATIVELY.
REVENUE INCREASE IS DUE TO INTEREST ON DOLLARS IN HAND.
SOME CHANGES IN OUR HUNTING FEES, OUR ENTRANCE IN THE CAMPING FEES, BOAT SLIP RENTALS, AND THERE IS ALSO A LIVESTOCK GRAVING CONTRACT OUT AT THE LAKE.
REMEMBER, WHAT YOU SEE IS THE LAKE AND IN THAT SMALL AREA WHERE OUR BOAT RAMP IS.
THE PART OF THE LAKE SHORE THAT WE OWN IS REALLY ONLY WHERE THAT BOAT RAMP IS AND WHERE THE CAMPGROUND IS.
WE'VE GOT ANOTHER TINY PIECE BACK THERE BEHIND THE DAM.
WE OWN WELL OVER 1,000 ACRES ON THE BOTTOM SIDE OF THAT DAM, AND THAT IS ACTUALLY YOUR WILDLIFE MITIGATION AREA.
IT'S A REQUIRED OFFSET FOR WHEN WE BUILT THAT LAKE.
BUT THAT PROVIDES OPPORTUNITY AND A SMALL AMOUNT OF REVENUE BACK TO THE SYSTEM.
IF WE GO OVER ON THE EXPENSES, YOU DO SEE THE SAME FOR BENEFITS, SLIDE INCREASE IN SUPPLIES, MAINTENANCE, THE PROFESSIONAL SERVICES INCREASE FOR GARZA COUNTY LAW ENFORCEMENT.
I THINK WE WILL HAVE THAT TAKEN OUT BEFORE WE ASK YOU TO ACT ON THIS BUDGET.
[01:45:05]
BUT REMEMBER THAT LAKE ALAN HENRY IS ITS OWN FUND, SO IT WILL NOT IMPACT ANY OF THE OTHER BUDGETS THAT WE HAVE LOOKED AT OR TALKED ABOUT.SLIGHT INCREASE IN IT AND ELECTRIC FUN FACT.
THIS IS NOT ON THE LP&L OR THE SPEC SYSTEM, SO IT'S AN ENTIRELY DIFFERENT ELECTRIC SYSTEM OUT THERE.
CAPITAL OUTLAY IS GOING DOWN BECAUSE WE HAVE MADE A LOT OF THE REPAIRS AND THE IMPROVEMENTS WE NEED OVER THE LAST LITTLE BIT.
TO GO TO THE RIGHT, YOUR BUDGET FOR THE NEW YEAR IS 821,000.
YOUR BUDGET IN THE PRIOR YEAR WAS A MILLION.
YOU DO SEE THAT WE'RE USING 101,000 IN EXCESS RESERVES.
YOU'VE GOT THE EXPENSES ON THE BOTTOM FROM 709,000 IN THE CURRENT YEAR DOWN TO 700 IN THE NEW YEAR.
THEN DOWN ON THE FUND LEVEL EXPENSES, YOU'VE GOT THE TRANSFER TO THE WATER DEPARTMENT.
THIS IS UNIQUE. THE WATER DEPARTMENT OWNS THE LAKE, THE PARKS DEPARTMENT RUNS THE LAKE.
COST ADJUSTMENT DOWN THERE, THE 12,707, THAT'S THE 4%.
GETS OUR TOTAL EXPENSES TO 821,000 MATCHING YOUR REVENUE AT THE TOP OF 821,000.
HERE ARE THOSE PROPOSED FEE CHANGES.
$10 THAT WE'RE REQUESTING ON THE NON-RESIDENT QUAIL.
THE RESIDENT WHITE-TAILED DOVE RIFLE SEASON.
SAME THING IN NOVEMBER FOR NON-RESIDENT, AND THEN OUT OF STATE TRYING TO ADJUST THE FEES ON THE QUAIL HUNTING.
SMALLER INCREASES ON THE HOGS, THE DOVE, QUAIL, ET CETERA, AS YOU GO DOWN THERE.
COUNCIL, WE DO NEED TO INCREASE THE ANNUAL ENTRANCE PERMIT FOR THE SENIORS.
WE HAVE NOT DONE THAT IN THE PAST SEVERAL YEARS.
WE'VE INSTEAD PUT IT ON THE NON-SENIORS, MAYBE THE JUNIORS, IF YOU WANT TO THAT.
BUT WE NEED TO CATCH THOSE BACK UP, GET A LITTLE PARITY GOING.
>> LET'S TAKE A 10-MINUTE BREAK HERE.
MR. ATKINSON, LET'S MOVE FORWARD WITH THE AIRPORT, I GUESS NOW.
>> THANK YOU, MAYOR. WE'RE GOING TO GO AHEAD AND GET CRANKING ON THIS ONE.
WE START AGAIN WITH THE REVENUE SUMMARY.
YOU SEE THAT THERE IS AN INCREASE IN AIRPORT LANDING OPS AND TERMINAL OPS, THOSE ARE OPERATIONS.
THIS IS DUE TO THE INCREASE THAT IS CALCULATED IN THE AIRLINE RATE AND CHARGES MODELS.
IN ALMOST ALL CASES, ALL OF THE RATES AND THE FEES AT THE AIRPORT ARE ULTIMATELY DONE BY THIS MODEL, THEY'RE PART OF THE VARIOUS LEASES AND ASSIGNMENTS, AND THEY'RE ULTIMATELY SUBJECT TO FAA APPROVAL.
MISS CAMPBELL AND HER TEAM ARE HERE TODAY THEY DO A GREAT JOB OF THAT.
THE PARKING REVENUES, THEY WILL INCREASE AS A RESULT OF EXPECTED PASSENGER ACTIVITY.
THE ACTUAL NUMBER OF OUR PASSENGERS CONTINUES TO NOT ONLY RECOVER, BUT TO INCREASE.
YOU SEE THAT EXTREMELY HIGH LEVEL RED MARKING THAT I'VE INSTALLED ON THAT PAGE.
OUR PFC, THAT IS PASSENGER FACILITY CHARGE.
THAT TRANSFER IS NOT INCREASED, IT IS DECREASED.
YOU'LL SEE IT ON THE NEXT PAGE, CORRECT, DUE TO A DECREASE IN THE ANNUAL DEBT SERVICE REQUIREMENTS.
OUR MISCELLANEOUS REVENUE IS GOING DOWN.
THE FEDERAL GOVERNMENT HAS HAD A PROGRAM NUMBER OF YEARS THROUGH THE TRANSPORTATION SECURITY AGENCY TO REIMBURSE US FOR A PORTION OF THE COST OF CERTAIN OF THE LAW ENFORCEMENT OFFICERS THAT ARE OUT THERE OR THE AIRPORT POLICE DEPARTMENT.
IN TOTAL, WHAT YOU'RE GOING TO SEE ON THE REVENUE SIDE IS A CHANGE FROM 18 MILLION TO JUST A LITTLE OVER 20.
AGAIN, A BIG PART OF THAT IS IN YOUR PARKING AND YOUR TERMINAL OPERATIONS A LITTLE BIT TO THE LANDING FEES.
YOU DO SEE CORRECTLY INDICATED ON THE CHART HOW THE PFC DEBT HAS GONE DOWN A BIT.
SAME THING, BUT ON THE EXPENSE SIDE OF THE REVENUE, WHAT YOU SEE ON HERE, COMPENSATION AND BENEFITS, SAME WE'VE TALKED ABOUT, MAINTENANCE AND OPERATIONS.
THIS IS DUE TO THE HVAC AND THE PLUMBING SYSTEM.
OUR PROFESSIONAL SERVICES CATEGORY HERE INCLUDES THE PARKING AGREEMENT.
WE DO NOT OPERATE THE PARKING.
IT'S TIME TO REPAINT THE TAXIWAY MARKINGS.
WE ARE PURCHASING A NEW SWEEPER AND A NEW PICKUP.
SOME OF THE THINGS WE DO AT THE AIRPORT, THEY ARE GOOD IDEAS, BUT WE HAVE TO DO THEM.
WE HAVE TO BUY CERTAIN EXPLOSIVE DETECTION EQUIPMENT OUT THERE.
OUR INSURANCE IS GOING DOWN AND RIGHT NOW OUR ELECTRIC NATURAL GAS COSTS ARE GOING DOWN.
DEBT PAYMENT AGAIN, THAT'S THROUGH THE PASSENGER FACILITY CHARGE GOING DOWN OUR TRANSFER TO ARFF, AIRPORT RESCUE FIREFIGHTING, THAT IS THE DEDICATED FIRE STATION THAT'S OUT AT THE AIRPORT THAT HAS THE GREAT BIG VEHICLES THAT TAKE CARE OF US.
THAT GOES UP. IT IS RELATED TO THE FIRE DEPARTMENT BUDGET.
[01:50:04]
WE DO HAVE SOME MORE CAPITAL MONEY THIS YEAR FOR NEW PROJECTS, AND WE ARE SLOWLY ROLLING OFF OF THE AIRPORTS CATEGORY OF THE ARPA REVENUES.THAT IS NOT THE SAME ARPA THAT WE HAVE HERE WHEN WE TALK ABOUT THE WEST LEVA QUARTER EXPANSION AND THOSE TOTALLY DIFFERENT PROGRAMS. MOVE OVER HERE AND LOOK AT YOUR BUDGET.
THE BLUE COLUMN, THE BUDGET '24-'25, THAT'S WHERE WE ARE TODAY.
YOU SEE 1.1 IN INTEREST EARNINGS, 4.3 FOR LANDING, 6.7 FOR THE TERMINAL, 4.5 PARKING, CONTINUING ON DOWN, TRANSFER FROM PFC AND CFC.
AGAIN, PASSENGER FACILITY AND CUSTOMER FACILITY CHARGE.
TWO DIFFERENT PROGRAMS, BUT PAID BY YOUR PASSENGERS.
MOVING DOWN TO COMPENSATION AND BENEFITS, MAINTENANCE AND OPERATIONS, YOUR DEPARTMENT LEVEL EXPENSES ARE 10.8.
YOU SEE THE NEW DEBT SERVICE LINE AT 3.2 MILLION, AND INDIRECT COST ALLOCATION, THE AIRPORT RESCUE AND FIREFIGHTING TRANSFER, CAPITAL TRANSFER, FOR A TOTAL OF 7.45 MILLION IN FUND LEVEL EXPENSES, TAKING YOU TO 18.292.
IF YOU'LL LOOK AT THE FUND BALANCE THERE AT THE BOTTOM, THE EXCESS RESERVES, THE BEGINNING BALANCE WOULD BE 25.6 MILLION.
WE'RE PROPOSE TO USE 4.2 OUT OF THAT, TAKING IT TO 21.4.
THIS FUND BALANCE HAS INCREASED PRETTY HANDILY, MAINLY BECAUSE OF MISS CAMPBELL AND HER CREW, HOW SUCCESSFULLY THEY'VE BEEN ABLE TO USE THE ARPA MONEY, THE BIPARTISAN INFRASTRUCTURE LAW FUNDING, AND OTHER FEDERAL GRANT PROGRAMS THAT HAVE COME THROUGH TO THE AIRPORT.
WHAT WILL THOSE DOLLARS BE USED FOR? THEY'LL BE USED FOR FUTURE PROJECTS. COUNCILMAN.
>> TELL ME ABOUT THE EXPENSE FOR FEDERAL LOBBYING SERVICES.
>> TELL YOU WHAT, I'LL START ON THAT.
IF I CAN'T GO ALL THE WAY, MISS CAMPBELL CAN COME UP AND DO THAT.
AGAIN, I JUST MENTIONED THE SUCCESS THAT WE'VE HAD WITH THE FEDERAL FUNDS OR THAT THEY HAVE HAD.
ALMOST EVERYTHING AT THE AIRPORT FROM THE REGULATIONS, TO THE SECURITY TO HOW THE FAA FUNDING PROGRAMS WORK, THAT IS ALL HANDLED AT WASHINGTON, DC.
WE ARE PART OF A NATIONAL, THE AMERICAN ASSOCIATION OF AIRPORT EXECUTIVES, AAAE.
WE WOULD LIKE TO TRY TO HAVE SOMEBODY ON OUR PAYROLL SPECIFICALLY AND JUST SEE IF WE CAN OBVIOUSLY BEAT WHAT WE'RE PROPOSING TO EXPAND ON THAT AND JUST BRING MORE MONEY TO LUBBOCK AIRPORT.
>> HOW MUCH IS INCLUDED IN THE BUDGET FOR LOBBYING SERVICES?
>> I'M GOING TO HAVE HELP ON THAT ONE.
>> GOOD AFTERNOON. WE PROPOSED AN INCREASE OF 90,000 TO PROFESSIONAL SERVICES.
[NOISE] WE'VE DECREASED A COUPLE OF OTHER LINE ITEMS IN THERE IN THAT CATEGORY.
WE EXPECT THAT TO BE AROUND 100,000 A YEAR.
>> THAT'S 100,000 YEAR TOTAL FOR LOBBYING?
>> JUST FOR LOBBYING. YES, SIR.
BUT WE JUST HAD A DELEGATION FROM JAPAN AND SOME OF THE FOLKS THAT HAVE COME FOR MULTIPLE YEARS SAID THAT OUR AIRPORT HAS NEVER LOOKED SO GOOD.
I THOUGHT YOU MIGHT KNOW ABOUT THAT.
>> ANY FURTHER QUESTIONS ON THE FUND MODEL? HERE IS YOUR CAPITAL PROGRAM FOR THE AIRPORT.
AIRPORT PAVEMENT MAINTENANCE, $200,000, THAT'S CASH.
EXTEND TAXIWAY L OR TAXIWAY LIMA.
THAT IS THE ONE ON THE WEST SIDE OF THE AIRPORT, I BELIEVE IT'S THE NEXT BIG EXPANSION ACCORDING TO OUR AIRPORT PLAN.
YOU SEE THE FUNDING SOURCES THERE, YOU'LL HAVE ABOUT $50.1 MILLION IN GRANTS THAT CAME THROUGH AND ABOUT 5.6 IN BONDS.
THOSE BONDS ARE UNIQUE TO THE AIRPORT PAID BY THE AIRPORT.
GENERAL PROPERTY IMPROVEMENTS, ALSO AN ONGOING ACCOUNT FOR THE CARE AND FEEDING OF EVERYTHING OUT THERE, ANOTHER 200.
MECHANICAL SYSTEM IMPROVEMENTS TO THE TERMINAL BUILDING, IN THE AMOUNT OF SEVEN MILLION.
[01:55:01]
THAT ALSO IS GOING TO LARGELY BE GRANT FUNDED.WE NEED TO DO MORE WORK OUT ON THE AIRFIELD LIGHTING ITSELF, AND THIS IS THE CONVERSION TO LED FOR THAT.
ALSO, A GRANT FUNDING OR A GRANT-ELIGIBLE ITEM.
YOU SEE THE STREET SWEEPER ACQUISITION.
WE'VE HAD AN EVENT OUT THERE THIS YEAR WHEN WE ENDED UP HAVING TO GET ONE OF THE BIG STREET SWEEPERS FROM HERE IN TOWN, GET IT OUT THERE, DO WHAT WE NEEDED TO DO, AND GET IT BACK.
WE NEED TO HAVE ONE OUT THERE.
MOVING OVER, FREIGHT ROAD AND PARKING SYSTEM IMPROVEMENTS, 500.
PERIMETER ROAD FIXING OF THAT ONE, 500.
IMPROVEMENTS AT THE CONSOLIDATED RENTAL CAR FACILITY IN THE AMOUNT OF 200.
ALL IN YOUR CAPITAL PROGRAM AT THE AIRPORT THIS YEAR WOULD BE 64.7, 1.8 IN AIRPORT CASH, 57 MILLION IN GRANTS, AND ABOUT 5.6 IN BONDS.
>> MR. ATKINSON OR KELLY, I'M NOT SURE IF THE QUESTIONS FOR YOU.
WHEN I'M LOOKING AT THE FUND BALANCE, IT SAYS OUR RESERVE FUND REQUIREMENT IS ONLY 4.2 MILLION.
FOR US SPEAK, IS THAT CORRECT?
>> WE HAVE 21 MILLION SITTING IN RESERVES.
WHAT DO WE TYPICALLY USE AIRPORT RESERVE MONEY FOR?
>> IT'S ALL GOING TO BE IN THE AIRPORT PERIOD.
GENERALLY, THAT WILL BE USED NUMBER 1 TO HAVE A READY SUPPLY OF DOLLARS THAT WE CAN MATCH AGAINST GRANTS THAT WILL POP UP.
SOME OF THEM ARE SCHEDULED, BUT NOT ALL OF THEM.
THEN THE REST IS FOR AIRFIELD CAPITAL OR AIRPORT CAPITAL, THAT WE CAN'T GET GRANTS FOR.
IS LIKE OUR EXTENDING THE TAXIWAY, WE'RE GOING TO TAKE OUT A BOND FOR FIVE MILLION WHEN WE HAVE 20 PLUS MILLION IN RESERVES.
WHY DON'T WE USE SOME OF OUR RESERVES IF WE'RE WELL OVER OUR RESERVE FUND BALANCE?
>> THIS PARTICULAR PROJECT IS ELIGIBLE FOR PASSENGER FACILITY CHARGE REVENUE.
THAT'S RESTRICTED TO SAFETY, SECURITY, AND CAPACITY PROJECTS.
WE WANT TO MAXIMIZE THAT FUNDING WHERE WE CAN.
THAT FUND DOES NOT HAVE THE CASH BALANCE TO USE CASH ON IT TO DO PAY-AS-YOU-GO.
YOU COULD USE RESERVES AND PUT IT INTO THE AIRLINE RATES AND CHARGES, BUT YOU'RE GOING TO DRIVE THE RATES UP.
WE'RE TRYING TO FIND A GOOD BALANCE WITH OUR AIRLINE PARTNERS SO THAT WE CAN KEEP AIRFARES LOW AND KEEP THE COST PER EMPLOYMENT DOWN.
WE COULD DO IT, BUT LIKE I SAID, WE'RE JUST TRYING TO MAXIMIZE WHEN WE HAVE RESTRICTIONS ON GRANT AND PFC FUNDING.
>> WELL, I'M STILL CONFUSED BECAUSE IF WE'RE GETTING GRANTS FOR THAT PROJECT, AND MAYBE THIS IS JUST MY NAIVETY ABOUT HOW AIRPORT STUFF WORKING ON THE NATIONAL LEVEL.
BUT IF WE'RE HAVING TO TAKE OUT 5.6 IN BONDS AND WE HAVE 21 IN CASH, I UNDERSTAND GRANTS ARE ALLOCATED TO SPECIFIC PROJECTS AND YOU HAVE TO APPLY, AND THEY GO TO ONLY TO CERTAIN UPGRADES.
BUT IF THAT'S CASH THAT WE HOLD IN RESERVES, DOES THE CASH HAVE TO BE SPECIFIC TO A CERTAIN PROJECT? I'M JUST TRYING TO UNDERSTAND WHEN WE HAVE THAT MUCH AND IT'S JUST CONTINUING TO BUILD WHY WE CONTINUE TO ISSUE DEBT FOR SOMETHING.
I'M NOT SUGGESTING YOU COMPLETELY DEPLETE YOUR RESERVES TO COMPLETELY CASH FUND EVERYTHING.
I'M JUST SAYING WE DO HAVE EXCESS, WHY MORE DEBT VERSUS REDUCING THE RESERVE BY A LITTLE BIT.
>> WE HAVE A VERY LONG LIST OF CAPITAL NEEDS.
AS YOU LOOK AT, WE'LL TAKE PARKING, FOR EXAMPLE, NONE OF THAT WOULD BE ELIGIBLE FOR GRANT FUNDING, PFC, OR CFC FUNDING.
AS WE LOOK FORWARD TO WHAT'S COMING AND WHAT WE MAY NEED ON ANY GRANT-ELIGIBLE PROJECT, WE'RE GOING TO HAVE TO HAVE A 10% MATCH.
WHEN WE FINISH THIS TAXIWAY LIMA, WE'VE GOT JUST TWO MILES OF TAXIWAY.
YOU'RE PROBABLY LOOKING AT ANOTHER 50 MILLION.
IF WE CASH FUND IN ALL OF OUR LOCAL MATCHES AND WE LIMIT OUR ABILITY ON WHAT WE CAN FUND WITH THE LESS RESTRICTIVE REVENUE SOURCES.
>> I'M NOT SUGGESTING THAT YOU COMPLETELY DEPLETE YOUR RESERVE.
I'M JUST SAYING WHAT DO WE HAVE A PLAN FOR THAT 20 MILLION RESERVE? DO YOU HAVE A PLAN FOR SOMETHING THAT'S COMING UP TO USE PART OF THAT?
NOW I WILL SAY OUR MASTER PLAN IS FROM 2007, SO WE'RE DUE A NEW MASTER PLAN IN THE NEXT FEW YEARS WHERE WE HAVE A GOOD OPPORTUNITY TO GET IN WITH A FINANCIAL CONSULTANT AND REALLY LOOK AT ALL OF THAT.
WE'VE GOT A PROJECT ON THE WEST SIDE, THAT'S $10 MILLION, WE DON'T HAVE A FUNDING SOURCE FOR.
ALL OF THESE PAYMENT PROJECTS ARE MULTIPLE SEVEN-FIGURE.
WE CAN SPLIT SOME OF THAT, DO SOME PFC AND SOME AIRPORT REVENUE,
[02:00:03]
BUT I DON'T THINK WE WOULD WANT TO REIMBURSE OUR RESERVES OUT OF PFC.PFC IS A LOCAL REVENUE SOURCE, THAT'S IT'S HEAVILY REGULATED BY THE FAA.
IT'S HARDER, YOU HAVE TO FILE AN APPLICATION AND DISCLOSE AND HAVE MEETINGS WITH THE AIRLINES.
WE WANT TO BE VERY CLEAR ON HOW WE'RE GOING TO DO THAT.
WE HAVE A DESIGN CONTRACT COMING ON THE NEXT COUNCIL MEETING, AND SO WE'LL SPEND THE NEXT NINE MONTHS DESIGNING THAT PROJECT.
WE'LL HAVE A BETTER IDEA OF WHAT WE'RE REALLY GOING TO NEED, AND WE MAY REFINE THAT.
BUT TODAY, WE THINK IT'S BETTER TO USE THE MORE RESTRICTIVE FUNDS, EVEN THOUGH IT WOULD REQUIRE ISSUING DEBT.
>> WELL, JUST FOR FUTURE, I'M ALWAYS HAPPY WHEN WE SEE GRANT MONEY FUNDING ANYTHING AND IT'S NOT TAX DOLLAR OR REVENUE THAT WE HAVE TO, BUT DEFINITELY, I DON'T WANT TO ISSUE BONDS IF WE DON'T HAVE TO JUST BECAUSE WE PAY INTEREST ON THAT MONEY.
>> WE'LL RERUN THOSE AND GET BACK WITH Y'ALL, BUT I CANNOT EXPLAIN IT NEAR AS WELL AS KELLY CAN.
THE LARGE BUCKET IS THE UNRESTRICTED CASH, YOU'RE 100% CORRECT ABOUT THAT.
THE PASSENGER FACILITY CHARGE IS A SEPARATE BUCKET IF YOU WANT TO LOOK AT IT THAT WAY.
IT'S THE FEE EVERYBODY ADDS TO THEIR TICKET, IF IT'S NOT PAID TO THE AIRPORT AND LUBBOCK GETS PAID TO THE VERY NEXT AIRPORT, THEY GET TO IT.
THAT'S THE ONE UNDER WHICH SHE'S PROPOSING TO DO THAT DEBT AND PAY IT WITH THAT PFC.
IF NOT, YOU'LL END UP DROPPING THAT PFC AND THAT DOESN'T SAVE THE PASSENGER ANY MONEY BECAUSE IT PICKS BACK UP AT THE NEXT ONE.
WE'LL RERUN IT AND THEN GET BACK WITH YOU MAY BE ABLE TO DO THAT BY NEXT TIME. MAYOR.
>> MISS CAMPBELL, I DO WANT TO APPLAUD YOU FOR YOUR GRANT EFFORTS BECAUSE YOU DON'T SEE A LOT OF CITY GOVERNMENTS DOING THAT.
I THINK YOU KNOW YOU'VE WRITTEN A GRANT, AND YOU UNDERSTAND THE PROCESS AND THE REQUIREMENTS AND BEING PREPARED, THAT'S FOR ME, I APPRECIATE WHAT YOU'RE DOING BECAUSE I'VE WRITTEN GRANTS, AND YOU DO HAVE TO HAVE THAT BACKUP AND NEEDS TO BE READY.
IF IT AIN'T FIXED, WHY BREAK IT? I THINK WE HAVE A GOOD SYSTEM.
YOU'VE OBVIOUSLY BEEN PROACTIVELY WORKING ON THAT.
I GET IT BECAUSE I'VE WRITTEN MULTIPLE GRANTS, AND I UNDERSTAND THAT THAT HAS TO BE READY AND AVAILABLE BECAUSE THE TIMING OF WRITING A GRANT AND GETTING THE PROCESS THROUGH IS NOT WHAT PEOPLE THINK SOMETIMES.
>> ONE QUESTION. ARE WE DONE WITH THE UPDATING OF THE FACILITY, THE TERMINAL ITSELF? HAVE WE COMPLETED ALL THAT PROJECT?
>> THE MAJOR PROJECT IS COMPLETE. YES, SIR.
BECAUSE THERE WERE NEW FUNDING OPPORTUNITIES, WE CAME BACK AND DID SOME WORK THAT WE DIDN'T HAVE THE OPPORTUNITY TO IN THE BIG PROJECT.
WE HAVE AN ELECTRICAL UPGRADE PROJECT THAT'S UNDERWAY.
THAT WAS WITH BIPARTISAN INFRASTRUCTURE LAW FUNDING.
I WAS A AIRPORT TERMINAL PROGRAM, A COMPETITIVE PROGRAM.
WE SUBMITTED AN APPLICATION FOR THAT AND THAT'S HOW THAT'S FUNDED.
WE FOLLOWED UP IN THE NEXT YEAR ON THE MECHANICAL SYSTEMS. THAT GRANT AND ASSOCIATED CONTRACTS ARE ON THE NEXT COUNCIL AGENDA AS WELL.
IT'S NOT AS VISIBLE TO THE PASSENGER.
THEN WE ALSO HAVE A PROJECT FOR THE SECOND FLOOR.
IF YOU'VE BEEN TO THE ADMINISTRATIVE OFFICES, YOU KNOW THAT WE DIDN'T TOUCH THAT.
THAT WASN'T ELIGIBLE FOR GRANT FUNDING OR PFCS AND WITH A FLASHBACK.
WE'RE REALLY, REALLY FAR BEHIND IN TECHNOLOGY.
WE EVEN THE ABILITY TO HAVE A WELL ELECTRONIC VERSION OF MEETINGS AND STUFF.
TO ARE SOME THINGS THAT WE STILL HAVE GOING ON, BUT THEY'RE NOT VISIBLE TO THE PASSENGER.
>> WE'LL MOVE ON. HERE ARE THE VARIOUS FEE CHANGES ASSOCIATED WITH THE AIRPORT.
AGAIN, AS YOU LOOK AT THE VARIOUS RENTS AND SO FORTH.
THESE ARE ADJUSTMENTS THAT ARE ALREADY CONTAINED WITHIN THOSE VARIOUS RENT OR LEASING DOCUMENTS, SO THAT WE'RE JUST CARRYING THROUGH WITH WHAT BOTH PARTIES HAVE AGREED TO.
SAME THING THAT YOU'LL SEE OVER HERE.
LANDING FEES ARE A BIG PART OF WHAT GOES INTO THE RATES AND FEES MODEL THAT KELLY WAS MENTIONING.
YOU DO SEE AN ADJUSTMENT ON THE TAXI CABS, PUBLIC PARKING FOR THE SHORT TERM FOR THE COVERED, AND THEN THE FEE THAT WE CHARGE TO THE RENTAL AGENCIES TO PARK THEIR CARS ON OUR PROPERTY.
THOSE ARE ALL ON THE BOTTOM OF THAT PAGE. MAYOR PER TEM?
[02:05:05]
>> MR. ATKINSON, DOES THE TAXICAB FEE, DOES THAT ALSO INCLUDE UBERS?
>> YES. THAT'S REALLY A MISNOMER.
IT'S GROUND TRANSPORTATION OF ALL SORTS.
>> THERE ARE REALLY NOT HARDLY ANY LITERAL TAXICABS LEFT. MR. ROSE.
>> HEY, KELLY. I NOTICED THE $4 GOING UP ON THE SHORT TERM PER DAY.
CAN YOU EXPLAIN? I GUESS ARE WE TRYING TO MOVE PEOPLE TOWARD MORE LONG TERM OR OFFSITE?
>> YES, SIR. THAT'S EXACTLY RIGHT.
WE'VE SEEN OUR LOTS VERY FULL SINCE THE RETURN OF TRAFFIC.
BUT IN PARTICULAR WITH COVERED AND SHORT-TERM.
WHAT WE FIND AS PEOPLE GO TO THE COVERED PARKING LOT, IT'S FULL, SO THEY JUST GO TO SHORT TERM.
WE ACTUALLY DID A PARKING STUDY IN 2019 TO SEE WHAT NEEDS WERE.
WE DETERMINE WE ACTUALLY HAVE AMPLE PARKING.
IT'S JUST NOT WHERE PEOPLE WANT IT.
THE PARKING STUDY RECOMMENDED TWO PHASES OF RATE INCREASES TO PUT MORE PRESSURE ON THE HIGH-DEMAND AREAS.
WE HAD A RATE INCREASE LAST YEAR FOR COVERED AND SHORT-TERM.
WE LEFT LONG TERM AND LONG TERM THE SAME AND ACTUALLY DECREASED AIRPORT SHELTER PARK OR OFFSITE LOCATION.
WE'VE NOT ACTUALLY SEEN THAT MAKE AS BIG OF A IMPACT AS WE HAD HOPED.
HOPING THAT WE GET THE PEOPLE WHO ARE WILLING TO PAY FOR THAT IN THOSE LOCATIONS AND PUSH MORE IF YOU'RE PRICE-SENSITIVE TO AIRPORT SHELTER PARK.
IT ACTUALLY IS A GREAT OFFERING.
I NEED PEOPLE TO GIVE IT A SHOT.
>> I JUST WANTED TO HAVE YOU HAVE A CHANCE TO EXPLAIN TO THE PUBLIC.
IT'S QUITE AN INCREASE, BUT I KNOW WE'RE TRYING TO PUSH PEOPLE OUT OF THAT FULL LOT.
>> IN PARTICULAR FOR SHORT TERM, THANK YOU FOR THE QUESTION.
COVERED, WE DO HAVE SHELTER PARK IF YOU JUST WANT COVERED PARKING, BUT FOR SHORT TERM THAT'S REALLY INTENDED FOR PEOPLE WHO ARE THERE FOR LESS THAN A DAY, AND THAT'S NOT HOW IT'S USED FOR THE CONVENIENCE.
>> THANK YOU, KELLY, MR. JACKSON.
>> WE'LL GO OVER NOW AND START ON CITIBUS.
THIS PAGE, AGAIN, WE'VE HIGHLIGHTED IN BLUE, THE COLUMN THAT IS THE NEW BUDGET, FISCAL YEAR 25.
A COUPLE OF ITEMS THAT I WILL POINT OUT.
THERE IS AN INCREASE IN THE CITY TRANSFER SO THIS IS THE GENERAL FUND DOLLAR THAT GOES TO SUPPORT THAT.
CURRENTLY, IT IS 2.45 MILLION AND IS PROPOSED TO GO TO 2.95 MILLION.
INCREASE ALSO IN THE DEPARTMENT OPERATIONS COSTS, ADVERTISING IS ACTUALLY DOWN.
THE TEXAS TECH SUBSYSTEM IS UP.
THAT'S NOT REVENUE THAT WE PAY, THAT'S WHAT TEXAS TECH PAYS TO HAVE THEIR PART OF THAT SUBSYSTEM.
WE KNOW TECH IS LOOKING AT BEING SURE THEY'VE GOT THAT WHERE THEY WANT IT, SO IT MAY CHANGE, IT MAY NOT.
BUT BASED ON YOUR CURRENT AGREEMENT YOU HAVE WITH TEXAS TECH, THAT'S THE NEXT STEP IN THEIR CONTRACT.
TICKETING AND FREIGHT AGENT, THAT IS REALLY THE SERVICES THAT WE PROVIDE AT THE TRANSFER PLAZA ON BEHALF OF GREYHOUND.
THEN WE HAVE THE LEASE AND SALE OF BUSES.
WE'RE SLOWLY BUILDING A REALLY GOOD NEW FLEET, BUT WHAT'S COMING OUT AGAIN IS JUST NOT WORTH A WHOLE LOT.
COUNCIL NOTE WHERE IT SAYS TRANSFER FROM ECONOMIC DEVELOPMENT FUND.
IN THE DAYS PRIOR TO WHERE WE STAND NOW WHEN YOU HAD THE RATE IN THAT RATE FUNDED MARKET LUBBOCK, IT HAS ALSO FOR A NUMBER OF YEARS PROVIDED $400,000 TO HELP, REALLY WHAT IT'S DOING IS OFFSETTING THE CITY PART OF THAT TRANSFER.
IT'S BUYING DOWN YOUR GENERAL FUND DOLLARS, EVEN THOUGH THOSE ARE GENERAL FUND DOLLARS.
WE'VE LEFT THAT IN THERE AT THE SAME RATE.
YOU MOVE DOWN, YOU HAVE SOME OPERATING REVENUES.
THESE ARE YOUR GRANTS THAT COME IN.
SOME CARRYOVER GRANTS FROM YEAR TO YEAR.
A LOT OF TIMES A FEDERAL GRANT OR A STATE GRANT DOESN'T NECESSARILY MATCH THE YEARS THAT WE'RE WORKING THROUGH.
YOU ACTUALLY SEE TWO BIG PIECES OF PRIOR YEAR GRANTS, ONE IN THE AMOUNT OF 1.3 MILLION, ONE AT 803,000.
TAKEN TOGETHER, THAT'S 19.1 MILLION DOLLAR.
MOVE DOWN TO THE GRANT AND DEPARTMENT LEVEL EXPENSES SO THAT YOUR OPERATING COST.
YOU SEE COMPENSATION IS UP 4.6, BENEFITS ARE UP, SUPPLIES DOWN.
PROFESSIONAL SERVICES UP A LITTLE.
THE OTHER CHARGES RELATIVELY FLAT,
[02:10:03]
SAME WITH YOUR CAPITAL OUTLAY AND REIMBURSEMENTS ON THE FIRST LINE, BUT THEY ARE DOWN ON THE SECOND LINE.IN SHORT, IT'S A $19 MILLION BUDGET THAT IS BALANCED.
IF YOU WISH TO LOOK AT IT THIS WAY AND I WOULD ENCOURAGE YOU TO DO SO, THE CITY'S CONTRIBUTION TO THE BUS SYSTEM IS 3.3 MILLION SO IT'S UP 500,000 FROM WHERE IT WAS THE YEAR BEFORE.
THE REAL CHANGE IS NOT THAT DRAMATIC OF AN EXPENSE INCREASE.
IT IS AS SOME OF THE COVID GRANTS THAT WE'VE BEEN USING TO BUY DOWN GENERAL FUND MONEY, THOSE ARE STEPPING DOWN OVER TIME.
REMEMBER THAT THE CITIBUS ARE NOT CITY OF LUBBOCK EMPLOYEES, THIS IS A THIRD PARTY THAT OPERATES IT ON YOUR BEHALF.
ANYMORE ON CITIBUS? MR. COLLINS.
>> SAY THAT AGAIN. CITIBUS EMPLOYEES.
>> LET ME START MAYBE JUST A HAIR FARTHER BACK.
THE CITY OWNS THE BIG PROPERTY THAT IS OVER THERE.
ON THE BUS TRANSFER STATION. WE OWN THE BUSES.
WE HAVE A CONTRACT WITH RATP DEVELOPMENT, AND THEY PROVIDE MR. MANDREL, AND A COUPLE OF OTHERS, AND THEY RUN THAT SYSTEM.
THE PEOPLE THAT YOU SEE DRIVING THE BUSES, FIXING THE BUSES, BASICALLY MAKING IT ALL HAPPEN, THOSE ARE IN EFFECT CONTRACTORS TO RATP.
THEY ARE NOT CITY EMPLOYEES THEY ARE NOT ON YOUR CITY INSURANCE, YOUR CITY BENEFITS, ETC THAT'S MAYBE NOT A WELL KNOWN FACT, BUT THAT IS HOW THAT WORKS.
IT'S ACTUALLY HOW IT HAS ALWAYS WORKED.
IT WASN'T ALWAYS THAT SAME MANAGEMENT COMPANY.
BUT THIS HAS NEVER BEEN AN IN HOUSE SERVICE, BUT RATHER A SERVICE THAT THE CITY PAYS SOMEBODY TO PROVIDE.
>> SO WHEN WE SEE APPROXIMATELY $12 MILLION WORTH OF COMPENSATION AND BENEFITS, THAT'S GOING TO THIS CONTRACT PROVIDER?
>> IT IS AND YOU'RE PAYING APPROXIMATELY 3.3 OF THAT.
>> I'M A LITTLE CONFUSED ABOUT THE WAY IT'S ACCOUNTED FOR.
IT WOULD SEEM TO ME LIKE THAT WOULD BE CALL A SUBCONTRACTOR OR SOMETHING TO THAT EFFECT, BUT I GET IT.
>> IT WOULD. THIS COULD LITERALLY BE A BUDGET THAT HAD ALL THOSE REVENUE LINES AND THEN ONLY ONE EXPENSE LINE.
MR. MANDREL AND HIS PREDECESSORS HAVE ALWAYS PRESENTED US WITH A BUDGET THAT AS CLOSE AS POSSIBLE, LOOKS LIKE A CITY BUDGET BECAUSE THEY'RE ASKING FOR 3.3 MILLION DOLLAR OF OUR MONEY, AND IT GIVES MYSELF AND MR. HOWERTON A CHANCE TO SAY, I KNOW HOW OUR BUDGET IS MOVING, YOUR BUDGET MOVING CLOSE TO THAT.
BECAUSE WE'RE ASKING YOU, THE COUNCIL FOR THAT 3.3 MILLION.
>> JARED, I'M LOOKING AT PAGE 335 OF THE SECOND VOLUME OF THE BUDGET BOOK.
>> ON 334, I SEE NUMBERS SIMILAR TO WHAT IS IN THE PRESENTATION HERE UNDER THE HEADING COMBINED GRANT AND OPERATING OVERVIEW.
BUT ON 335, WHAT'S THE DIFFERENCE WITH THIS OPERATING FUND OVERVIEW?
>> I THINK MS. BROCK IS GOING TO BE BETTER EQUIPPED TO ANSWER THAT FOR ME, SO I'M GOING TO GET HER SPOOLED UP.
>> IF YOU LOOK AT 335, AND YOU'LL NOTICE THE REVENUES, YOU DON'T SEE THE GRANTS.
>> THIS IS THE REVENUE SIDE BUS BY ITSELF, THE REVENUE FOR THE FUND THAT THEY GET.
IT DOES NOT INCLUDE THE GRANTS.
THE COMBINED ONE SHOWS THEIR WHOLE FUNDING AND ALL OF THEIR EXPENSES.
THIS JUST SPLITS OUT THE, WE CALL IT OPERATING, BUT FOR CITIBUS, IT'S ACTUALLY ALL THE SAME DIFFERENT FUNDING SOURCES.
>> THEN THE DEPARTMENT LEVEL EXPENSES ON 335 ARE DIFFERENT
[02:15:03]
THAN 334 AND THE MATERIALS PRESENT IN THE PRESENTATION.>> THAT'S BECAUSE IT'S GRANT AND DEPARTMENT LEVEL EXPENSES ON 334.
>> I'M SORRY, BUT I STILL DON'T UNDERSTAND.
WHAT'S THE DIFFERENCE WITH THE DEPARTMENT LEVEL EXPENSES THAT ARE BEING PRESENTED ON PAGE 335 COMPARED TO 334?
>> THE ONES FROM 334 ARE INCLUDING THE EXPENSES PAID BY THE GRANTS, ON 335, IT'S ONLY THAT'S WHAT'S BEING PAID BY THE REVENUE OTHER THAN GRANTS.
>> SO WHEN WE'RE SEEING A 50% INCREASE IN BENEFITS, FOR EXAMPLE, IN THE OPERATING FUND OVERVIEW, OR 50% INCREASE IN PROFESSIONAL SERVICES, CAN YOU EXPLAIN SOME OF WHAT'S DRIVING THOSE COSTS?
>> THAT WOULD HAVE TO COME FROM CHRIS.
>> AFTERNOON. THE COMPENSATION ON 335 THAT IS WHAT IS NOT OFFSET BY GRANT REVENUE.
MOST OF THE COMPENSATION IN HERE IS GOING TO BE FOR THE UNIVERSITY SYSTEM ON THAT ONE.
WE HAVE IN THE PAST YEARS PAST, PRIOR TO THE AFFORDABLE CARE ACT, WE TRY TO DO EVERYTHING WE COULD TO HAVE PART TIME EMPLOYEES OPERATE THE UNIVERSITY SERVICE WHEN THAT CAME DOWN BECAME MORE AND MORE DIFFICULT SO WE'VE HAD TO HIRE SOME FULL TIMES TO OPERATE THAT SERVICE SO THAT'S WHERE THAT BENEFIT IS COMING FROM.
THE BENEFITS ARE COMING FROM THOSE FULL TIME EMPLOYEES OPERATING THE UNIVERSITY SYSTEM SERVICE.
>> SO THE 50% INCREASE IN BENEFITS, ABOUT HALF $1 MILLION, ARE YOU SAYING THAT'S ALL ATTRIBUTABLE TO MOVING TO FULL TIME EMPLOYEES?
>> NO. THAT'S JUST WHAT IS NOT OFFSET BY GRANT REVENUES, AND THAT'S WHAT IT'S SHOWING HERE.
OUR MEDICAL INSURANCE IS INCREASING.
WE DO NOT KNOW WHAT THAT RATE IS GOING TO BE, BUT WE PROJECTED OVERALL BUDGET A 20% INCREASE IN THE MEDICAL PREMIUM AND THIS IS JUST WHAT'S ALLOCATED THAT'S NOT PAID BY GRANTS THAT'S ALLOCATED TO UNIVERSITY SYSTEM SERVICE.
>> WHAT'S DRIVING THE INCREASE IN PROFESSIONAL SERVICES?
>> WE DO HAVE A PROJECT THAT WE WANT TO.
WE HAVE SOME ROUTE CHANGES THAT WE ARE WANTING TO IMPLEMENT AND A LOT OF SYSTEM WIDE IMPROVEMENTS THERE.
WE HAVE TRADITIONALLY BEEN IF THERE'S ANY SORT OF DETOUR OR ANY SORT OF ROUTE INFORMATION TO THE DRIVER, WE ARE TYPICALLY PRINTING OFF PIECES OF PAPER AND HANDING IT TO M FOR THE LEFT AND RIGHT TURNS, THE DETOUR INFORMATION, ALL THOSE KINDS OF THINGS.
WHAT WE'RE ASKING FOR HERE, WE HAVE A VENDOR THAT WE CURRENTLY WORK WITH THAT THEY PROVIDE THE SAME INFORMATION IN A TABLET FORM, SO WE WOULD BE ABLE TO FROM OUR DISPATCH LOCATION, SEND THAT INFORMATION OUT TO THE DRIVER FOR DETOURS.
IT WOULD GIVE THEM GPS DIRECTIONS ON THE ROUTE TO MAKE SURE THAT THEY UNDERSTAND IT AND MAKE SURE THEY KNOW IT.
IT'S ALSO GOING TO HELP POTENTIALLY WITH NEW HIRE EMPLOYEES.
WE DO ALL THE TRAINING WE POSSIBLY CAN TO MAKE SURE THEY'RE AWARE OF IT, BUT THIS WOULD ALSO HELP THEM NAVIGATE THE ROUTE IF THEY GET TO A POINT WHERE THEY CAN'T REMEMBER A CERTAIN PIECE OF IT, THAT WOULD HELP THEM SO THAT'S WHAT SOME OF THAT INCREASE IN COST IS IN THERE.
>> IS THERE ANYTHING ELSE DRIVING THE INCREASE IN PROFESSIONAL SERVICES THAT ARE NOT COVERED BY GRANTS?
>> JUST STANDARD PREVENTION MAINTENANCE AND WE UTILIZE OUTSIDE VENDORS FOR MAINTENANCE PURPOSES, THINGS THAT OUR SHOP POTENTIALLY CANNOT REPLACE OR FIX.
SOME OF THE OLDER BUSES WE HAVE IN FLEET ARE 22-YEARS-OLD THOSE PREDOMINANTLY OR NOT PREDOMINANTLY, THEY ARE DEDICATED TO THE UNIVERSITY SERVICE, AND A LOT OF TIMES THOSE VEHICLES NEED MORE OUTSIDE SERVICE.
THAT'S THE OTHER ADDITIONAL INCREASE IN THAT LINE.
>> MR. ATKINSON, JUST TO BE CLEAR.
THE CITY'S PART OF THIS IS THE CITY TRANSFER, THE 2.458 AND THE ECONOMIC DEVELOPMENT FUND TRANSFER OF 400,000, IS THAT CORRECT? IS THAT WHERE YOU GET THE 3.3 MILLION?
>> MOVE ONE COLUMN TO THE RIGHT MAYOR. THE CITY'S TRANSFER.
>> I WAS LOOK AT THE WRONG YEAR.
>> YEAH. THE CITY TRANSFER IS THE 2.9 PLUS THE 400.
[02:20:01]
I THINK MAYBE THAT'S AN EASIER WAY TO SAY THAT.THE TOTAL BUDGET IS THE 19.128 THAT YOU SEE ON THE TOP AND THE BOTTOM OF PAGE 334, WHICH IS THE SAME AS WHAT'S ON THE SLIDE.
>> ANY MORE QUESTIONS? MAYOR PRO TEM.
>> WHAT I'M SEEING HERE, I GUESS, TOP LINE OF THIS CHART, THE REQUEST OR THE BUDGETED INCREASE FROM THE GENERAL FUND IS HALF MILLION DOLLAR FOR THIS FISCAL YEAR?
>> BACK TO CHRIS, THAT HALF MILLION DOLLAR IS GOING TO FILL THE GAP.
OBVIOUSLY, MR. GARSHEEN ASKED ABOUT A SIGNIFICANT INCREASE IN BENEFITS. IS THAT RIGHT?
>> YEAH. PRE COVID SO BACK IN 2019, 2020, THE CITY TRANSFER WAS ROUGHLY 3.2 MILLION, AND SO TRANSIT GOT THEIR OWN CARES AT ARPA FUNDING THROUGH FOR COVID RELIEF SO WE'VE BEEN USING A LOT OF THAT FUNDING TO HELP OFFSET THE GENERAL FUND TRANSFER THERE.
THAT MONEY IS RUNNING OUT SO ALL WE'RE ASKING FOR IS AN INCREASE TO HELP TRY TO MAKE WHAT REMAINING COVID FUNDING WE HAVE STRETCH FURTHER, AND THEN JUST TO POTENTIALLY IN FUTURE YEARS, GET IT BACKUP TO WHAT IT WAS PRE COVID.
>> SO PRE COVID, WE'RE TALKING 2019, THE CITY WAS PROVIDING APPROXIMATELY 3.2 MILLION?
>> 3.6 BECAUSE YOU WOULD HAVE THE 400 THERE ALSO.
>> SO WE WERE PROVIDING 4 MILLION.
>> 3.6 AND WE'RE NOW BACK TO 3.3.
>> WELL, THAT'S HELPFUL. WE'VE ALL SEEN THIS ARPA SHIFT AND MAYBE IT'S JUST SHOWN UP IN YOUR BUDGET MORE VIVIDLY THAN IT HAS IN OTHERS SO THANK YOU.
>> I JUST WANT TO POINT OUT THAT THESE ROUTES, PART OF THE REASON THAT THERE IS SMALL INCREASES IS BECAUSE WE'RE GROWING.
THE CITY IS GROWING, THE NEEDS OF OUR COMMUNITY ARE GROWING ALSO, CAN YOU REMIND ME HOW MUCH DID YOU GET IN GRANTS FOR 30 NEW FLEET?
>> IN 2022, WE ARE AWARDED 39.6 MILLION FOR BUS REPLACEMENT, THE LOW EMISSION GRANT PROGRAM THROUGH A FEDERAL FUNDS ADMINISTRATION.
>> SO JUST TO POINT OUT TO THE PUBLIC THAT IS WATCHING, YOU GUYS HAVE BEEN VERY PROACTIVE WITH GRANTS, AND IT HAS DEMONSTRATED.
EVEN THOUGH WE SEE AN INCREASE NOW, IT'S BECAUSE WE'VE BEEN RELIANT ON ALL OF THESE GRANTS THAT WE GOT AS A RESULT OF ARPA, BUT NOW REALITY IS SETTING IN.
BUT I DO WANT TO ACKNOWLEDGE THAT YOU ARE BEING VERY PROACTIVE WITH THOSE GRANTS, AND I APPRECIATE THAT.
>> HAVE YOU COMPLETED YOUR REORGANIZATION OF THE ROUTES? I KNOW YOU PRESENTED A PROGRAM ON THAT A YEAR OR SO AGO. HAVE YOU COMPLETED THAT?
>> YES. OUR CONSULTANTS FINISHED THAT, FOR THE MOST PART, THE PLANNING PART OF THAT BACK IN PAPER AND PRESENTED TO OUR BOARD.
THEN THE NEXT STEP IS JUST, WE NEED TO GET THAT IN FRONT OF YOU GUYS FOR CONSIDERATION.
IF THERE ARE SOME MORE TWEAKS THAT WE'RE H TO MAKE ON IT BASED UPON THE BUDGET DISCUSSIONS WE'RE HAVING NOW, TWEAKS ON HOURS OF SERVICE AND THAT SORT OF THING, SO WE CAN MAKE IT ALL KIND OF FIT.
BUT THE PLANNING PART OF THAT IS COMPLETED.
THE ROUTES THAT WE'RE PROPOSING ARE COMPLETED.
THERE'S JUST SOME TWEAKS ON THE NUMBERS OF HOURS OF SERVICE AND THAT SORT OF THING THAT NEED TO BE FLUSHED OUT AND THEN COME TO YOU FOR DISCUSSION AND ESSENTIALLY APPROVAL.
>> ONE FINAL QUESTION, I NOTICED IN THE BUDGET FOR LAST YEAR AND THIS YEAR, THERE'S NOTHING IN THERE FOR MAINTENANCE, BUT IS THAT ALL COVERED BY FEDERAL GRANTS NOW?
>> YES, SIR. THAT IS ON, I'M LOOKING TO THIS PAGE HERE 334, I BELIEVE THAT WAS UNDER.
>> THERE ARE MAINTENANCE AMOUNTS ON PAGE 334, BUT THEY ARE ON 335 SO I'M JUST ASSUMING THOSE ARE PAID FOR BY GRANTS.
>>YEAH. ALL THE PREVENTATIVE MAINTENANCE WE GET THROUGH THE GRANT AND SO THOSE FUNDS PAY, IT'S 80% FEDERAL, 20% LOCAL MATCH FOR THOSE MAINTENANCE COSTS.
>> FROM THE BUSES TO THE CEMETERY.
[LAUGHTER] I HAVE NO IDEA IF THAT'D BE FUNNY OR NOT,
[02:25:05]
BUT WE'RE GOING STRAIGHT FROM THE BUS STOP.ANYWAY. WE'LL JUST MOVE RIGHT ON. LUBBOCK CEMETERY.
WHICH, IF ANYBODY'S CURIOUS, DOES ANYONE ON COUNCIL KNOW WHO THE FIRST PERSON THAT WAS INTERRED AT THE LUBBOCK CEMETERY? SOME OF YOU ALL HAVE SEEN MY PRESENTATION.
APPROXIMATELY 13 YEARS BEFORE LUBBOCK EXISTED.
LUBBOCK TOOK A PRIVATE CEMETERY.
THREE RANCHERS CAME TOGETHER AND EACH IN THEIR CORNERS, SET ASIDE A SMALL AMOUNT OF PROPERTY AND A COWBOY HAD PASSED AWAY.
WE CAN'T PROVE YET, BUT WE BELIEVE THAT THE LUBBOCK MEMORIAL CEMETERY IS THE LARGEST MUNICIPALLY OWNED CEMETERY IN THE STATE.
IF YOU'VE BEEN OUT THERE, THE ML ANGEL THAT IS OUT THERE, THAT'S AN ORIGINAL AND REAL AND HAS BEEN TAKEN DOWN ONCE TO BE RESTORED AND PUT BACK UP.
PRETTY NEAT PLACE. ANYWAY, MOVING RIGHT ALONG.
WHAT YOU'RE GOING TO SEE HERE, WE HAVE A INCREASE TO THE GRAVE SERVICES REVENUE, AND THAT IS JUST MORE UTILIZATION.
WE ARE GOING TO UTILIZE SOME EXCESS RESERVES INSIDE THIS FUND.
WE ARE NOT GOING TO TRANSFER FROM THE GENERAL FUND TO COVER THAT.
THAT WAS A STANDARD BUDGETING PRACTICE A NUMBER OF YEARS AGO.
WE HAVE SUCCESSFULLY WEANED OURSELVES OFF OF THAT AT THIS POINT.
YOU SEE OVER ON THE RIGHT, YOU'VE GOT ALL OF THAT WHERE WE HAVE REDUCED THE TRANSFER ABOUT 335.
WE DO HAVE SOME CHANGES IN COMPENSATION AND BENEFITS.
A LOT OF IT'S THE SAME WE'VE TALKED ABOUT.
WE ARE TRYING TO USE MORE AND MORE PART TIME WORK OUT THERE.
THE MAINTENANCE AND OPERATIONS IS UP BECAUSE OF THE VEHICLES AND THE COST OF THE MOWING CONTRACT THAT IS OUT THERE.
THAT SERVICE IS UP VERY SLIGHTLY, AND THEN WE ARE PROJECTING A TRANSFER TO CAPITAL PROJECTS.
HERE THEN ARE THOSE CAPITAL PROJECTS, $20,000 IN CASH FROM THE CEMETERY FUND FOR GENERAL IMPROVEMENTS.
WE ARE AT THE POINT WHERE THAT IRRIGATION SYSTEM IS OUT THERE.
WE CANNOT KEEP PATCHING IT AND IT'S GOING TO HAVE TO BE REPLACED IF WE'RE GOING TO KEEP THAT TO THE STANDARDS THE PUBLIC EXPECTS.
YOU DO SEE A SMALL TAX NOTE SO THAT WE CAN DO THAT AND DO IT ALL AT ONCE.
WE'VE BEEN ABLE TO GO THROUGH THE TREES AND ALL OF THOSE REPAIRS.
WE'RE STILL DOING SOME OF THEM.
THE FENCE WORK, BUT WE CAN'T REACH OUT FAR ENOUGH TO GET THE IRRIGATION SYSTEM.
WE'LL GO TO THE CIVIC CENTER NEXT.
PRETTY INTERESTING LITTLE TRIP HERE.
CIVIC CENTER. ON HERE, YOU SEE THE REVENUE SUMMARY.
CURRENTLY, IT'S $4.59 OR $4.6 MILLION, NEW BUDGET, 4.3.
OUR DEMAND IS RELATIVELY FLAT, SO WE DON'T SEE A WHOLE LOT OF NEW EVENTS COMING IN AT THIS POINT.
MOST OF OUR OTHER REVENUES ARE FLAT.
WHAT WE'RE REALLY SEEING HERE IS THE IMPACT OF A REDUCTION IN OUR INTEREST EARNINGS.
WE ARE USING EXCESS RESERVES TO COVER CASH FUNDED CAPITAL.
WE WILL HAVE A VERY SLIGHT FEE CHANGE.
WE'LL LOOK AT THAT HERE IN JUST A SECOND.
COUNCIL SHOULD PROBABLY PAUSE AND JUST REAL QUICKLY LAY OUT HOW THE FINANCES AT THE CEMETERY WORK.
THIS CIVIC CENTER, DID I SAY CEMETERY? [LAUGHTER] LET ME TALK A LITTLE BIT ABOUT HOW THE FINANCES AT THE CIVIC CENTER WORK.
CIVIC CENTER OBVIOUSLY CHARGES FEE FOR SERVICE FOR ALL OF THAT.
THIS CIVIC CENTER NOR ANY CIVIC CENTER OF WHICH I AM AWARE OPERATES AT A BREAK EVEN OR AT A PROFIT.
THAT IS WHY THE PUBLIC OWNS THEM AND PROVIDES THAT SERVICE.
IN THE CASE OF YOUR CIVIC CENTER, ALL OF THE OPERATING LOSS, IF YOU WISH TO CALL IT THAT, SO OUR EXPENSE MINUS WHAT WE BRING IN IS THE REVENUE, ALL OF THAT OPERATING LOSS IS COVERED THROUGH A HOT TAX ALLOCATION, AND LATER TODAY, WE'RE GOING TO LOOK AT THAT IN A LOT OF DETAIL.
FOR THE OPERATIONS OF THE CIVIC CENTER, THERE IS NO LOAD ON YOUR GENERAL FUND.
THERE IS NO TRANSFER FROM YOUR GENERAL FUND.
WE STARTED A COUPLE OF YEARS AGO, ALSO MAKING AND IT'S A SMALLER NUMBER, BUT MAKING A TRANSFER OUT OF HOT FOR THE CAPITAL WORK AT THE CIVIC CENTER.
WE'VE HAD ONE OF THE PARKING LOTS COMPLETELY REDONE.
WE'VE GOT A BIG HOT WATER LINE CHANGE OUT THAT'S COMING UP.
AT THIS POINT, WE'VE BEEN ABLE TO GET
[02:30:02]
THE CIVIC CENTER'S ENTIRE OPERATIONS OFF OF THE GENERAL FUND.NOW, THERE IS STILL A DEBT PAYMENT THAT'S OUT THERE, AND THAT'S ACTUALLY DUE TO A BOND FROM MANY YEARS AGO.
BUT TODAY, YOU ARE NOT USING GENERAL FUND DOLLARS TO SUPPORT YOUR CIVIC CENTER.
LET'S GO OVER AND LOOK AT THE EXPENSE SIDE.
THIS ONE'S A LITTLE UNIQUE AND THAT OUR COMPENSATION AND BENEFITS IS GOING DOWN AND THAT'S BECAUSE OF A REDUCTION IN OVERTIME AND TERMINAL PAY.
TERMINAL PAY IS WHEN A LONG TERM EMPLOYEE LEAVES OUR SERVICE.
WE DO HAVE AN INCREASE IN INSURANCE AND WORKERS' COMPENSATION.
FOR CONTRACTUAL, IT'S BUILDING MAINTENANCE AND SECURITY AND THE SECURITY THAT WE'VE BEEN ABLE TO PROVIDE OVER THERE HAS BEEN HUGE.
IT HAS REALLY CALMED SOME THINGS DOWN THAT NEEDED TO CALM DOWN.
THE DEBT CONTINUES TO DECREASE.
FOR THE NEW YEAR, WE ARE NOT MOVING AS MUCH MONEY OVER FOR CASH FUNDED CAPITAL.
THIS IS ANOTHER DEPARTMENT, THOUGH, BEING AN ENTERPRISE, IT PAYS INTO THE FLEET REPLACEMENT FUND.
I DON'T KNOW THAT I MENTIONED THIS YESTERDAY. I SHOULD.
LET ME STOP. ON ALL OF YOUR ENTERPRISE FUNDS, WHEN THEY BUY A NEW VEHICLE OR A NEW PIECE OF EQUIPMENT, WE'VE GOT TO COME UP WITH THE MONEY TO BUY IT.
YOU'LL SEE THAT AS WE GO THROUGH ALL OF THIS.
ONCE IT IS BOUGHT AND IT COMES BACK TO THAT PARTICULAR DEPARTMENT TO BE USED, THAT DEPARTMENT IN EFFECT PAYS, YOU COULD CALL IT A LEASE RATE, IF YOU WANT.
IF WE THINK THAT'S A SEVEN YEAR ASSET, WE DIVIDE THE EXPECTED REPLACEMENT COST BY THE SEVEN YEARS AND THEY PAY THAT INTO A FUND.
VEHICLE 12, THAT'S THE NEW ONE IS SLOWLY PAYING ITS WAY TO WHEN VEHICLE 12 COMES OUT OF SERVICE TO BE REPLACED, IT IS DONE WITH CASH IN HAND THAT WE'RE NOT SCRUBBING OUT OF SOME OTHER BUDGET.
WE HAVE ALL THE ENTERPRISE FUNDS ON THAT MODEL.
WE'RE ONE YEAR AWAY FROM SEEING THE FIRST OF THE VEHICLES BE REPLACED THAT WILL BE REPLACED WITH CASH IN HANDS, AND THEY'RE ALL ON DIFFERENT SERVICE LIFE, SO THAT'LL TRIGGER AT DIFFERENT TIMES.
WE ARE NOT DOING THAT IN THE GENERAL FUND.
THAT'S BEEN A GOAL OF MINE, AND THIS IS NOW THE EIGHTH YEAR THAT I'VE SAID THAT THAT IS A GOAL OF MINE.
WE JUST DON'T HAVE THE GENERAL FUND DOLLARS TO DO IT.
BUT WHEN WE DO, I PROMISE IT WILL BE MUCH EASIER ON FUTURE BUDGETS WHEN IT'S TIME TO DO THOSE REPLACEMENTS, AND YOU MAY NEVER GET ALL OF THEM.
IF YOU THINK OF 2.1 MILLION FOR A PLATFORM TRUCK FOR THE FIRE DEPARTMENT, THE COST OF PAYING INTO THAT TO REPLACE IT, NOW YOU'VE GOT 14 YEARS TO DO IT, THAT'S GOING TO GET TOUGH.
BUT YOU'RE BUYING 70 POLICE VEHICLES THIS YEAR.
WE'RE BUYING NUMEROUS PICKUPS AND THINGS LIKE THAT.
I THINK WE'RE GOING TO SEE THE BENEFIT BEGINNING NEXT YEAR, A SMALL BENEFIT, EACH YEAR, IT GETS BIGGER ON ENTERPRISE FUNDS.
JUST KNOW THAT AS A FUTURE GOAL, WE REALLY OUGHT TO LOOK AT THAT SAME MODEL FOR GENERAL FUND.
IT'S JUST PRICING IT OUT AND PAYING FOR IT.
>> THE CITY OWNS THE FLEET VEHICLES.
>> THEN EACH OF THE ENTERPRISE FUNDS THAT HAS A VEHICLE ASSOCIATED WITH IT PAYS THE CITY.
>> THEY'RE PREPAYING FOR THEIR NEW [OVERLAPPING]
>> FOR THEIR VEHICLES. VERY GOOD. THANK YOU.
>> CAPITAL FOR THE CIVIC CENTER.
WE'VE GOT PARKING LOT REPAIR, MONEY INTO THE CIVIC CENTER, MAINTENANCE FUND, AND THE EQUIPMENT REPLACEMENT AND UPGRADE FUND.
MOVING OVER HERE, YOUR FEE CHANGES THAT ARE PROPOSED.
ONE THING YOU WILL NOTE, IF YOU WALK ACROSS TO THE LEFT SIDE OF THE PAGE, THESE HAVE NOT CHANGED IN A NUMBER OF YEARS WHILE OUR EXPENSES HAVE CHANGED.
WE'RE TRYING TO CONTINUE ON THAT MODEL OF SET THEM RIGHT, AND THEN YOU CAN KEEP ADJUSTING THEM SLOWLY.
WE JUST STILL HAVE A LOT OF THEM THAT ARE WAY BEHIND.
READY TO GO GOLFING? COUNSEL, I KNOW WE HAD AN EXTENSIVE PRESENTATION IN FRONT OF Y'ALL WITH THE CHANGES AT MEADOWBROOK.
JUST KNOW THAT WHAT YOU'RE GOING TO SEE NOW IS HOW WE ROLL INTO THAT FOR THE FUTURE.
AT THE TOP, YOU'VE GOT YOUR PREDICTED REVENUES AT THE EXPENSES, SO 2.65 VERSUS 2.5.
THAT'S REALLY ABOUT IT FOR THIS.
GOT TO GET THEM HERE AND GET THEM GOING.
SHORT VERSION, YOU'RE BRINGING IN A NEW CONTRACTOR FOR THE FIRST TIME IN OVER 30 YEARS.
[02:35:03]
I THINK WE'RE GOING TO SEE GOOD IMPROVEMENTS IN THE QUALITY OF THE PRODUCT THAT WE HAVE TO OFFER AND THE SATISFACTION OF THE FOLKS THAT ARE USING IT.IT IS STILL PREDICTED NOT TO COST YOU MONEY.
THAT COVERS YOUR ENTERPRISE FUNDS.
THE REST OF THESE ARE INTERNAL SERVICE FUNDS.
WE TALKED ABOUT THAT YESTERDAY A COUPLE OF DIFFERENT TIMES.
THESE ARE CITY DEPARTMENTS THAT EXIST TO PROVIDE SOMETHING TO ANOTHER CITY DEPARTMENT.
THIS IS THE ONE THAT THINGS ARE TOUGH.
[NOISE] YOU SEE THE TOP LINE THERE ON THE DEPARTMENT LEVEL EXPENSES A CHANGED FROM 114-139.
THE BIGGEST PART OF THAT CHANGE, ALMOST ALL OF THAT CHANGE IS GOING TO BE IN THE SUPPLIES AND THE MAINTENANCE.
THIS IS TRYING TO KEEP THAT BIG FLEET GOING.
THE DEBT SERVICE IS INCREASING A LITTLE BIT FOR THE TAX NOTES FOR THE SOLID WASTE AND FOR LUBBOCK FIRE RESCUE, BUT IT'S OFFSET BY TRANSFERS.
YOU SAW THE COST OF THE FIRE TRUCKS AND SO FORTH AND SOLID WASTE IN THOSE DEPARTMENTAL BUDGETS.
WE PUT IT IN THEIR DEPARTMENT SO THAT WHEN THE COUNCIL LOOKS AT THE BUDGET, YOU KNOW EXACTLY WHAT THAT DEPARTMENT COST YOU TO OPERATE.
BUT THE DEBT SERVICE GOES TO HERE AND THEN GETS PAID OUT ON THOSE TAX NOTES.
TRANSFER TO CAPITAL IS GOING UP FOR SOME CAPITAL PROJECTS.
WE'LL LOOK AT THOSE HERE IN JUST A MINUTE.
AGAIN, OVERALL, IT IS A SIGNIFICANT INCREASE IN THE BUDGET, AND IT'S PRETTY MUCH ALL ON THE SUPPLIES AND MAINTENANCE.
>> I KNOW THAT WE DO A LOT OF STUFF IN-HOUSE, BUT WE ARE ALSO DOING A LOT OF SUBCONTRACTING.
>> I DON'T WANT TO IMPACT ONE FOR ANOTHER, BUT IS THAT SOMETHING THAT WE CAN ADDRESS TO [OVERLAPPING]
>> WE HAVE BEEN TAKING SMALL BITES OUT OF THAT.
TODAY, THE FLEET OPERATION PRIMARILY IS TRYING TO TAKE CARE OF SOLID WASTE.
THAT'S ITS MAIN CUSTOMER, AND IT TAKES CARE OF POLICE.
WE HAVE NO SPACE REALLY TO DO ANYTHING ELSE.
OVER THE LAST FEW YEARS, WE HAVE ADDED THE CAPABILITY OF DOING CERTAIN KIND OF THE TIRES.
WE DID NOT HAVE THAT CAPABILITY, WE HAVE THAT NOW.
WE HAVE THE ABILITY TO DO SOME EMERGENCY FUELING AND THINGS LIKE THAT THAT WE DIDN'T HAVE, AND WE'VE ALSO ADDED HYDRAULICS, AND WE HAVE ADDED A DEVICE AND IT'S IN THE CAPITAL THAT BASICALLY CLEANS OUT PART OF THE DIESEL TRUCK EXHAUST SYSTEM THAT IS A HUGE CAUSE OF FAILURE FOR A LOT OF THOSE TRUCKS.
ESPECIALLY A TRASH TRUCK, IT'S IDLING UP AND DOWN THE ALLEYS, AND THEN IT GETS ON THE HIGHWAY AND WE STAND ON THE GAS AND OFF WE GO.
IT'S REALLY HARD ON WHAT THEY CALL THE DPF, THE PARTICULATE FILTER THAT'S IN THERE.
WE WILL NOT GET TO WHERE WE CAN TAKE CARE OF MOST OF OUR LIGHT DUTY FLEET UNTIL WE HAVE A SIGNIFICANT EXPANSION IN TERMS OF SPACE.
WHERE DO I SEE THAT HAPPENING? REMEMBER THE PROPERTY THAT WAS PURCHASED FOR THE TRANSFER STATION IS VERY LARGE, ROUGHLY 77 ACRES OUT THERE.
THE TRANSFER STATION WILL BE PHYSICALLY PUT RIGHT IN THE DEAD MIDDLE OF IT TO GET IT AS FAR AWAY FROM OUR NEIGHBORS AS WE CAN GET IT.
GIVING US A LOT OF ROOM TO START ADDING SOME CAPABILITIES OUT THERE.
TODAY, THE MAJORITY OF YOUR CITY, WHETHER IT'S A BACKHOE OR IT'S A TRASH TRUCK, THE MAJORITY OF ALL OF THAT EQUIPMENT IS OUT HERE ON MUNICIPAL HILL.
IT SPENDS A LOT OF TIME GOING BACK AND FORTH.
LUBBOCK IS MUCH BIGGER THAN IT WAS WHEN THAT LOCATION WAS PURCHASED.
WE HAVE A SMALL CREW THAT WE CAN STATION DOWN AT 84S AND P. BUT IF IT'S NOT THOSE TWO, EVERYTHING IS GOING TO BE BACK UP THERE.
AS WE DEVELOP THE TRANSFER STATION SITE, WE'LL BE ABLE TO SPREAD THAT EQUIPMENT OUT, SHORTEN ITS DRIVE TIME TO WHERE IT NEEDS TO GO TO WORK AND WHERE IT NEEDS TO COME BACK AT THE END OF THE DAY.
I THINK THAT WILL BE ALSO THE PLACE THAT YOU CAN PUT YOUR NEXT FLEET OPERATION.
IT NEEDS SOME RISK MITIGATION TO GETTING ALL THAT STUFF OUT OF ONE PLACE.
JUMP OVER TO HEALTH. WE'VE GOT COMP AND BENEFITS DECREASING AND THAT'S JUST DUE TO SOME STAFFING CHANGES.
THE PROFESSIONAL SERVICES IS UP A BIT AND THIS IS FOR THE BENEFITS CONSULTANT THAT WE NEED TO GET GOING, AND SOME NEW PROGRAMS WE MIGHT WANT TO TRY FOR OUR MEMBERS, WHICH ARE ALL DESIGNED ULTIMATELY TO DRIVE DOWN OUR COSTS.
IF YOU LOOK AT THAT, YOU SEE YEAR OVER YEAR, YOU'VE GOT YOUR PREMIUMS AND YOUR SCHEDULED CHARGES ABOUT HALFWAY THROUGH THAT PAGE, CURRENT YEAR 41.5, NEW YEAR 45.4.
THE EXPENDITURES CARRY DOWN UNDERNEATH THAT,
[02:40:03]
AND GRAND TOTAL IS A 46.12 FOR ALL OF YOUR HEALTH BENEFITS.>> IT, TO ME, IS THE ROOT DEFINITION OF WHAT AN INTERNAL SERVICE IS.
IN IT, CURRENT YEAR BUDGET IS 12.1, NEW BUDGET IS 12.8.
YOU'VE GOT YOUR COMPENSATION AND BENEFITS INCREASE.
WE HAVE TRANSFERRED TWO FULL TIME POSITIONS THAT WERE IN THE RADIO SHOP OVER TO IT AND TO TELECOMMUNICATIONS, AND THEN YOUR STANDARD BENEFITS CHANGE.
IN THE MODERN WORLD, YOUR RADIO NETWORK REALLY IS A COMPUTER NETWORK AS WELL, THAT'S HOW THEY WORK.
THE MAINTENANCE CATEGORY IS UP, AND THIS IS JUST FROM THE NEW SOFTWARE.
WE CONTINUE, AND I PRESUME EVERY OTHER AGENCY IN THE WORLD, ONE OF OUR SINGLE LARGEST EXPENSES IN IT IS THE COST OF SOFTWARE MAINTENANCE.
MANY OF YOU ALL ARE LIKE ME, YOU'VE BEEN THROUGH SEVERAL ITERATIONS OF WHAT SOFTWARE WOULD DO FOR US.
SOFTWARE PROVIDES US TREMENDOUS CAPABILITIES.
WE'VE GOT THE NEW CAD SYSTEM FOR POLICE AND FIRE, RECORDS, THE BODY CAMERAS, TREMENDOUS BENEFIT.
NO ITERATION OF SOFTWARE HAS EVER SAVED MONEY.
MOST RECENT WAS CLOUD COMPUTING WOULD SAVE MONEY, AND THAT REALLY HASN'T DONE THAT AS WELL.
OTHER OPERATIONAL COSTS THAT WE HAVE HERE, REPLACEMENT COST OF DESKTOPS, LAPTOPS, ETC.
WHERE IT SAYS, PRINTER LEASES, THOSE ARE PRIMARILY THE BIG LARGE PRINTERS THAT YOU'LL FIND ONE PER FLOOR OR ONE PER OPERATION.
THE TAX NOTE HERE IS ALSO PAYING DOWN.
NET TO NET, YOU'VE GOT 5.9 OR 6% CHANGE IN THE COST OF IT.
THAT COST IS DIVIDED OUT ON A PER DEVICE PER SOFTWARE BASIS AND CHARGED BACK TO THE OTHER DEPARTMENT.
THIS ONE CAME IN PRETTY 50 FLAT, SMALL CHANGE IN COMPENSATION AND BENEFITS AND WHAT YOU SEE FOR HEALTHCARE, TMRS, ETC.
WE'VE BEEN ABLE TO TAKE THE PROFESSIONAL SERVICES LINE DOWN A LITTLE BIT.
IT WASN'T HUGE, BUT IT'S COMING BACK DOWN.
YEAR-TO-YEAR, IT WAS A $902,000 BUDGET GOING TO A $938,000 BUDGET.
ALSO ONE FULL TIME POSITION THAT WAS MOVED OVER TO IT.
SUPPLY AND MAINTENANCE CATEGORY IS LARGELY THE IVR INTERACTIVE VOICE RECORDER.
THAT IS THE FANCY ANSWERING MACHINE FOR CITY OF LUBBOCK UTILITIES.
THAT IS ACTUALLY COVERED BY A CHARGE TO LP&L TO PAY FOR THAT.
AS WE TALKED ABOUT YESTERDAY, WE HAVE PRETTY MUCH UNIVERSAL CELL PHONE ISSUANCE AT PD.
THAT COMES BACK OVER HERE TO GET CHARGED, BUT IT'S COMING OUT OF PD BUDGET.
THEN WE HAVE SOME CORE TELEPHONE SYSTEM STUFF THAT WE NEED TO REPLACE GOING IN.
ALSO CHARGED OUT SIMILAR TO YOUR BASE IT.
NOW, YOU'RE PICKING UP THE BENEFIT OF THOSE TRANSFERS, SO YOU SEE DECREASES HERE.
CURRENT YEAR, 1.5 DOWN TO 1.0.
LOOK AT THE BOTTOM, AND THEN YOU'VE GOT YOUR FUND LEVEL EXPENSES, CARRYING IT ALL IN.
SLIGHT ADJUSTMENT BECAUSE OF STAFFING CHANGES, LITTLE BIT OF AN INCREASE IN OUR SUPPLY BUDGET, LITERALLY ABOUT $200.
PROFESSIONAL SERVICES FOR THIS ACCOUNT IS LARGELY THE BANK SERVICE CHARGES, AND THAT'S GOING TO GO BACK DOWN.
WE'RE CONTINUING TO CHANGE THE OPERATIONS HERE, BUT THIS IS WHAT HANDLES ALL OF THE INVESTMENTS ON BEHALF OF THE CITY.
YEAR-OVER-YEAR, 287,000 - 209,000.
PRINT SHOP, ALSO A SLIGHT REDUCTION IN COMPENSATION BECAUSE OF STAFF CHANGES.
IT'S JUST UNDER 1% FOR THAT CHANGE THERE.
IT'S ACTUALLY LESS THAN $1,000.
THE PROFESSIONAL SERVICES ARE GOING UP DUE TO TRAINING ON SOME NEW EQUIPMENT THAT WE WERE ABLE TO GET THROUGH THIS YEAR.
WE'RE TRYING TO GET A BETTER SOFTWARE SYSTEM TO
[02:45:02]
MANAGE AND CHARGE OUT THE WORK THAT WE DO FROM THE PRINT SHOP.ALL OF US AT THIS DESK HAVE OUR PLACES COVERED WITH THINGS THAT CAME OUT OF THE PRINT SHOP.
CAPITAL IS DOWN BECAUSE WE DID DO THAT ONE TIME PURCHASE IN THE CURRENT YEAR, SO WE DON'T NEED TO CARRY THAT MONEY OVER.
YEAR-OVER-YEAR, YOU'VE GOT A CHANGE REDUCTION OF ABOUT 130 BUCKS.
>> MR. ATKINSON, JUST ONE QUESTION AND WE SEE THIS AT THE BOTTOM OF EACH OF THESE PAGES, THE COMPENSATION ADJUSTMENT ON EACH OF THESE.
IS THAT THE 4% THAT YOU HAVE PLAYED OUT AT THE END?
>> THAT IS, AND THE REASON IT SHOWS UP SEPARATELY HERE, THESE BUDGETS HAVE TO ALL BE RUN FIRST BEFORE WE DO ANYTHING BECAUSE THEIR CHARGES AFFECT EVERY OTHER DEPARTMENT.
SO RATHER THAN COMPLETELY RECREATING THESE BUDGETS, WE JUST SHOW YOU THE COMPENSATION ADJUSTMENT SEPARATELY.
>> MY QUESTION WOULD BE THAT DOESN'T SEEM TO BE 4% OF THE COMPENSATION FIGURE.
I'VE NOTICED THAT ON SOME OF THE OTHERS.
>> THEY'RE ALL GOING TO BE A NET FOR BASED ON WHATEVER THE OTHER CHANGES INSIDE COMPENSATION WERE.
IF A POSITION WAS BUDGETED AT A HIGHER LEVEL THAN WHAT IT ULTIMATELY FILLED AT, IT'S ALWAYS BUDGETED AT WHAT THE LEVEL IS.
THE RAISE IS CALCULATED ON WHAT WE'RE ACTUALLY PAYING.
DO EVERYBODY UNDERSTAND THAT? HERE IS YOUR CITY WAREHOUSE.
PRETTY FLAT ON THE COMPENSATION.
OF COURSE, YOU HAVE THE ADJUSTMENT DOWN THERE SEPARATELY.
BENEFITS ARE THE SAME, A BIT OF AN INCREASE IN OUR FUEL COST.
SAME THING WITH INCREASED MAINTENANCE.
OUR SCHEDULED CHARGES HERE ARE GOING DOWN JUST A LITTLE BIT, IT, PROPERTY INSURANCE, ELECTRIC, AND THE CAPITAL IS GOING UP.
WE REALLY NEED TO PURCHASE A SET OF VERTICAL RACKS TO STORE SOME OF THE MATERIAL WE HAVE INSIDE.
YEAR-OVER-YEAR, IT'S A CHANGE FROM 477,000 - 500,000.
WE WON'T NEED TO BUY IT AGAIN NEXT YEAR.
YOU SEE THE INCREASES IN THE COMPENSATION AND BENEFITS.
THAT'S DUE TO SOME RECLASSES OF EMPLOYEES, TMRS, OUR HEALTH PREMIUMS, ALL OF THAT.
PROFESSIONAL SERVICE IS UP, WE PAY FOR THE LIFE SCAN PROGRAM THAT IS USED AT THE FIRE DEPARTMENT.
THAT HAS BEEN SOMETHING THE CITY PURCHASED, WE DON'T PURCHASE WE SUBSCRIBE, BASICALLY.
IT IS AN EARLY CANCER DETECTION PROGRAM FOR YOUR FIREMEN, FIRE WOMEN, AND THERE HAVE BEEN SOME INCREDIBLE SAVES AS A RESULT OF THAT PROGRAM.
SO YOU DO SEE AN INCREASE AND YOU HAVE A NEW LIFE SCAN CONTRACT.
YOU ACTUALLY APPROVED IT ABOUT THREE MEETINGS AGO.
IT GOES INTO EFFECT IN OCTOBER. THAT'S WHY IT'S HERE.
SCHEDULED CHARGES ARE GOING DOWN, AND A LOT OF THAT IS PROPERTY PREMIUMS, AND IT'S REALLY THE CHANGES IN THE OPERATIONS AT LP&L. IT'S DOING THAT.
WE DO HAVE SOME WORKERS COMP AND LIABILITY THAT HAVE GONE UP, BUT THAT PROPERTY PREMIUM'S GONE WAY DOWN.
TRANSFER OF THE GENERAL FUND WILL GO UP JUST A LITTLE BIT.
WE USE RISK MANAGEMENT TO HELP PAY FOR ORGANIZATIONAL DEVELOPMENT INSIDE OF HUMAN RESOURCES.
YEAR-OVER-YEAR, FROM 14.4 - 13.4.
AGAIN, THAT REDUCTION IS REALLY THE LIABILITY OF THE PROPERTY INSURANCE.
WE'RE NOW TO THE CAPITAL PART OF INTERNAL SERVICES.
THE FIRST ONE ON HERE FUNDED WITH CASH IS THE RADIO SYSTEM UPGRADE.
THIS IS ALSO SOMETHING THAT OVER TIME WILL REALLY NEVER END.
YOU'LL SKIP A YEAR, DO A YEAR, AND SO FORTH.
YOU SEE THE FUELMASTER SOFTWARE UPGRADE, THE SYSTEM WE HAVE THAT CHARGES OUT OUR FUEL AT OUR TWO FUELING LOCATIONS IS NO LONGER BEING SUPPORTED.
RADIO TOWER BUILDING REPLACEMENT, AND THAT'S A BIG FANCY NAME FOR A REINFORCED SHED.
IT'S WHERE SOME OF THE GROUND LEVEL EQUIPMENT STAYS AND WE'VE GOT ONE THAT NEEDS TO BE REDONE.
THE $100,000 IN RADIO REPLACEMENTS.
THAT IS THE ONGOING PIECE OF KEEPING THAT UP.
VEHICLE REPLACEMENTS THAT ARE COMING OUT IN CASH IS THE 11.9 HERE.
THEN YOU SEE THE TAX NOTES THAT CARRY OVER ON THE OTHER SIDE.
IF YOU REMEMBER BACK TO THE FIRST DAY,
[02:50:01]
WE WERE AT BASICALLY 9.9 IN THE TAX NOTES AND HERE YOU SEE THE DIVISION OF THAT BETWEEN SAVINGS IN PRIOR YEARS AND THE NEW YEAR.WE'RE GETTING CLOSE. THE NEXT SECTION, WE'LL START ON THE SPECIAL REVENUE FUNDS. EVERYBODY READY TO KEEP GOING? WE'RE GOING TO TALK QUITE A BIT ABOUT YOUR VARIOUS TIFS, THE TAX INCREMENT FINANCING ZONES, AND YOUR PIDS, THE PUBLIC IMPROVEMENT DISTRICTS.
I'M GOING TO SPEND MORE TIME ON THE FIRST OF EACH OF THOSE.
JUST KNOW THAT THE GENERAL DESCRIPTION APPLIES TO ALL OF THEM.
A TIF OR A TAX INCREMENT FINANCING ZONE IS A CREATED DISTRICT.
IT'S ULTIMATELY CREATED BY CITY COUNCIL.
COULD ALSO BE CREATED BY THE COUNTY IF THEY PARTICIPATE IN OTHERS.
WHAT IT DOES IS IT TAKES AN AREA, AND FOR ROUND NUMBERS, LET'S SAY WE DRAW A LINE AROUND FOUR BLOCKS, COMMERCIAL PROPERTY, AND THAT FOUR BLOCKS TODAY IS WORTH $100 MILLION.
WHEN YOU CREATE A TIF, A TAX INCREMENT FINANCING ZONE, WHAT YOU ARE DOING IS SAYING, WE ARE GOING TO TAKE THE FUTURE INCREASE IN VALUE AND REINVEST THE FUTURE INCREASE IN VALUE IN THOSE FOUR BLOCKS.
TWO FUNDAMENTAL THINGS TO NOTE.
THE TAX REVENUE THAT YOU WERE GETTING OFF OF THAT VALUE THE DAY YOU CREATED IT, THE $100 MILLION OF VALUE, YOU WILL ALWAYS CONTINUE TO GET THAT.
YOU DON'T LOSE IT. LET'S SAY THAT THE ZONE GOES UP TO 110 MILLION IN VALUE.
THE TAX INCREMENT IS NOW $10 MILLION, SO YOU MULTIPLY IT BY THE TAX RATE AND YOU GET REVENUE.
THAT REVENUE THEN IS REINVESTED IN THAT SAME FOUR-BLOCK ZONE.
KNOW THAT A PROPERTY IN A TIF DOES NOT PAY LESS TAX, AND IT DOES NOT PAY MORE TAX.
AS THE CITY CHANGES ITS TAX RATE, IT CHANGES FOR THOSE PROPERTIES AS WELL.
THE CITY IS GOING TO ALWAYS GET THE VALUE OF WHATEVER THE BASE WAS, 100 MILLION IN THIS EXAMPLE.
THE VALUE FROM THAT INCREMENT AS IT GROWS OVER TIME IS REINVESTED BACK INTO IT.
THIS PARTICULAR TIF IS THE CENTRAL BUSINESS DISTRICT, SO THIS IS YOUR DOWNTOWN TIF.
YOU SEE ON THIS PAGE, THE TOTAL OF THE FUNDING SOURCES FOR THE YEAR IS 1.85 COMPARED TO 1.67 IN THE PRIOR YEAR.
YOU'VE GOT REALLY A COUPLE OF SOURCES THAT HAVE GONE UP.
WHERE IT SAYS TAX COLLECTION, NEW YEAR AT 1.68, PRIOR YEAR AT 1.55.
THAT IS THE VALUE OF YOUR INCREMENT GROWING.
THE BASE YEAR FOR THIS IS IN YOUR GENERAL REVENUE CALCULATIONS.
IN THE CASE OF THE CENTRAL BUSINESS DISTRICT TIF, COMMONLY CALLED CBD, THEY HAVE INTEREST EARNINGS THAT HAVE ALSO GONE UP A BIT, MOST SIGNIFICANTLY ON THE BOND EARNINGS THAT THEY HAVE HELD IN THEIR CIP FUND.
IF YOU DROP TO THE MIDDLE SECTION, YOU'VE GOT YOUR EXPENDITURES, EXPENDITURES HAVE GONE UP A LITTLE BIT.
THE BULK OF THAT IS IN CASH CAPITAL, $200,000 OF THAT CHANGE IS IN THAT CASH CAPITAL.
NOTE THAT THEY HAVE MORE REVENUE THAN THEY HAVE EXPENDITURES, 566,000, THAT FALLS INTO THEIR RESERVES.
ALL OF THE TIFS HANDLE THEIR RESERVES DIFFERENTLY.
ALL OF THE TIFS HAVE AN APPOINTED BOARD.
COUNCIL HAS APPOINTMENTS TO THE THEM.
IF THERE ARE OTHER TAXING JURISDICTIONS, THEY HAVE APPOINTMENTS TO THEM.
THAT'S HOW THE DECISIONS ARE MADE.
ULTIMATELY, THE BUDGETS COME TO YOU, BUT THAT'S HOW IT'S MADE.
BUT THEY ALL TREAT THOSE RESERVES DIFFERENT.
CENTRAL BUSINESS DISTRICT TIF TRIES TO ACCUMULATE THOSE RESERVES AND THEN APPLY THEM TO WHAT THEY CONSIDER TO BE A MORE IMPACTFUL PROJECT.
YOU THINK ABOUT DOWNTOWN TO WHERE A LOT OF YOUR ELECTRIC LINES ARE NOW UNDERGROUND, THEY'VE BEEN BURIED.
THAT WAS PAID FOR BY THE CBD TIF.
THEY HAVE BUILT COMMON VAULTS TO TRY TO GET A LOT OF UTILITIES DOWN IN THEM.
YOU CAN'T FORCE A PRIVATE UTILITY INTO THEM, BUT A LOT OF THEM HAVE DONE IT, NOT ALL, BUT SOME.
IN SHORT, THAT'S HOW TIF WORKS.
IN PARTICULAR, THIS IS THE BUDGET FOR THE CBD TIF.
WHAT YOU'LL NOTICE, IF YOU LOOK ACROSS IT, YOU SEE THAT THAT FUND BALANCE, THE AVAILABLE RESERVES IS CONTINUING TO CLIMB.
THEY ALL HAVE AN END DATE, AND IT'S A LITTLE BIT LIKE THE WAY A TAX ABATEMENT WORKS.
[02:55:02]
ON THEIR END DATE, WHATEVER THAT INCREMENT WAS, IN MY PRIOR EXAMPLE, IT WENT 100 MILLION TO 130.ON THAT ENDING DATE, THAT 30 MILLION IN VALUE RETURNS TO THE CITY'S GENERAL REVENUE LEVEL, AND IT RETURNS ALL AT ONCE.
IF THERE IS CASH HELD IN A TIF WHEN IT EXPIRES, IT IS DISTRIBUTED PRO RATA BASED ON THE PARTICIPATION OF THE TAXING JURISDICTIONS.
YOU WOULD GET 0.477 OF IT USING THIS BUDGET AS AN EXAMPLE.
THE COUNTY WOULD GET WHATEVER THEIR PORT WAS AND CARRY FORWARD LIKE THAT.
DOES IT MAKE SENSE? QUESTIONS ABOUT THIS ONE PARTICULAR BUDGET? I'VE GOT THEIR CAPITAL ON THE NEXT PAGE, IF YOU WANT TO SEE IT. MR. COLLINS.
>> WHEN WAS THE CENTRAL BUSINESS DISTRICT TIF ORIGINATED?
OVERTON WAS 26. IT'S TAKEN THEM LONGER TO GROW.
>> BUT THEY WERE 185 MILLION IN BASE VALUE IN 2001.
TELL ME WHAT THE BASE VALUE IS PROJECTED IN 2025.
>> WELL, BASE VALUE REMAINS THE SAME.
>> I THINK HE'S ASKING WHAT'S THE TOTAL VALUE NOW? THE DIFFERENCE IN THE TWO IS THE INCREMENT.
>> CHERYL, ISN'T CBD THE 40-YEAR TIF? IS IT THE ONE THAT WAS EXTENDED?
>> IT IS THE ONE WITH 40 YEARS, AND LUBBOCK BUSINESS [INAUDIBLE] 30.
>> I'M TRYING TO GET TO THE MODEL. TAKE YOUR TIME.
>> I TELL YOU WHAT, MAYOR, WHILE SHE'S LOOKING THAT UP, LET ME FLIP OVER TO THE CAPITAL JUST REAL QUICK.
THE NEW CAPITAL ARE FOR PUBLIC IMPROVEMENTS THAT ARE AN ELIGIBLE EXPENSE IN THE DISTRICT.
THEY'RE SETTING ASIDE A FUND TO ALLOW THEM TO DO THAT, THERE'S NOT A SPECIFIC.
WE'RE GOING TO REPLACE X OR Y. I MENTIONED SOME OF THE OTHER THINGS THEY HAD DONE, SO LET'S GO UP ONE LINE.
UTILITY INFRASTRUCTURE UPGRADES AND RELOCATIONS, PRIOR PROJECT FUNDED, BUT WHAT WE SAID IT WAS.
GATEWAYS ARE DOLLARS THAT THEY HAVE TO WORK ON THE ENTRANCES, IF YOU WOULD, TO DOWNTOWN.
SPECIAL PROJECTS AND CONVENTION CENTER HOTEL PROJECT.
THOSE WERE PRIOR YEAR PROJECTS THAT THEY'RE REALLY HOLDING THOSE DOLLARS IN THOSE CAPITAL PROJECTS.
THEN THE HISTORIC DISTRICT DESIGNATION, AND I DON'T ACTUALLY HAVE THE LADY THAT RUNS THIS HERE TODAY.
SHE'S HAD SOME DOCTORS APPOINTMENTS TO GO TO, BUT I DON'T KNOW THAT THAT ONE'S STILL GOING.
>> NO. WE'RE GOING TO CLOSE IT.
>> THEY'LL CLOSE THAT AND PUT THE MONEY BACK INTO THEIR RESERVES. YOU'VE GOT THE NUMBERS?
>> I DO, SIR. FOR 24-25, WE'RE PROJECTING.
THE VALUE IS GOING TO BE 293 AND THEIR BASE HERE WAS ACTUALLY 100 AND LET ME BASE YEAR VALUE WAS 105.858. I WAS WRONG.
>> THEIR BASE YEAR VALUE WAS 105,000,858.
THEIR PROJECTED VALUE FOR NEXT YEAR OR FOR 24-25 IS ABOUT 293 MILLION.
>> THE INCREMENT IS ABOUT 188 MILLION?
>> WELL, AND I GUESS THAT'S THE POINT I WANT TO MAKE.
THE EFFORTS THAT THIS CITY HAS GONE THROUGH BOTH INSIDE THE CITY AND OUTSIDE HAS NEARLY TRIPLED THE VALUE OF THE PROPERTY DOWNTOWN.
>> YES. THAT'S CORRECT, 189 MILLION, IS THAT WHAT YOU SAID?
HE'S ALWAYS LAUGHING AT ME ABOUT IT.
>> WELL WE'LL POINT THIS OUT AND WE'LL TAKE THIS UP AGAIN MAYBE IN A MOMENT, BUT I THINK IT'S VERY IMPORTANT THAT WE RECOGNIZE THE VALUE OF THESE EFFORTS IN WHAT WAS A DECAYING AREA IN OUR CITY.
>> THEY'VE DONE VERY WELL, ESPECIALLY THE LAST FEW YEARS.
>> MR. ATKINSON, COULD YOU EXPLAIN GENERALLY
[03:00:05]
AGAIN FOR THE PUBLIC WHO MIGHT BE WATCHING THIS IF THEY HAVE NOTHING BETTER TO DO.WHAT IS THE PURPOSE OF A TIF? IT'S SOMETHING THAT WE CAN DO BECAUSE STATE LAW ALLOWS US TO DO THIS TO CAPTURE THAT TAX VALUE INCREASE AND GIVE IT TO THEM.
WHAT ARE THEY PERMITTED TO DO WITH IT?
>> GOOD QUESTION. I'LL TAKE THE MIDDLE ONE FIRST.
THE AVAILABILITY OF THE TIF AS A TOOL IS SET OUT IN STATE LAW.
AND THAT'S THE SAME WHETHER YOU'RE IN LUBBOCK OR ANY OTHER CITY INSIDE THE STATE OF TEXAS.
IT'S MOST SIMPLE PURPOSE IS TO ENCOURAGE GROWTH AND REDEVELOPMENT SOMEWHERE THAT THAT IS NOT HAPPENING.
THAT'S THE BASE PURPOSE FOR DOING THAT.
AGAIN, IT DOES NOT COST AN OWNER MORE, NOR DOES IT SAVE AN OWNER.
IT JUST MEANS THAT THE DOLLARS GENERATED BY THAT INCREMENT GO BACK TO FUNDING ELIGIBLE PUBLIC IMPROVEMENTS.
YOU WILL SEE HERE IN JUST A LITTLE BIT OF TIFS THAT DO THE ROADWAYS.
THEY MAY REBUILD, THEY MAY REPLACE.
THEY MAY PUT ONE IN THAT DIDN'T EXIST IF THAT WAS THE APPROPRIATE RESPONSE.
UTILITY IMPROVEMENTS ARE A BIG THING THAT GETS PAID FOR OUT OF TIFS.
MOST OF THE TIME, THIS IS NOT A PROHIBITION. IT'S JUST HOW IT WORKS.
MOST OF THE TIFS DON'T DO A WHOLE LOT OF THE ONGOING MAINTENANCE OVER TIME.
THEY CAN, AND THERE'S TIMES IT'S VERY APPROPRIATE.
IT'S JUST NOT NORMALLY WHAT THEY'RE GOING TO BE DOING.
BUT THINK OF ANY IMPROVEMENT THAT IS IN THE PUBLIC SIDE OF PROPERTY.
YOU CAN DO STREETSCAPING. NEW SIDEWALKS.
TIFS ARE ABLE TO DO A VERSION OF A GRANT TYPE DEAL, BUT WHEN THEY DO, THE BENEFIT OF THAT GRANT HAS TO BE ON THE PUBLIC SIDE OF THE RIGHT AWAY LINES.
IT'S STILL AN OVERALL PUBLIC BENEFIT WHEN THEY DO THAT.
WE'RE GOING TO GO TO THE LUBBOCK BUSINESS PARK TIF.
I THINK EVERYONE ON THE DIOCESE IS FAMILIAR WITH THE LUBBOCK BUSINESS PARK.
YEAR OVER YEAR, YOU SEE THE TAX REVENUE INCREASING FROM 975,000 TO JUST A LITTLE OVER A MILLION.
YOU SEE THE INTEREST EARNINGS COMING UP GIVING YOU A REVENUE INCREASE FROM 1.0 MILLION TO 1.7 MILLION.
THE EXPENDITURES CARRY YOU DOWN THE PAGE.
I DID NOT EXPLAIN ON THE LAST, SO I WILL ON THIS.
THE SALARY AND BENEFITS, THAT IS A CITY PERSON.
IT'S A SMALL PORTION OF A CITY PERSON BECAUSE WE DO THE ADMINISTRATIVE SIDE OF ALL THE WORK FOR ALL OF THE TIFS AND THE PITS.
THERE'S ONE EXCEPTION, BUT OTHER THAN THAT, THEY'RE ALL THE SAME.
THE POSTAGE AND MAIL HANDLING CHARGE, THOSE ARE THE REQUIRED NOTICES THAT HAVE TO BE SENT OUT EACH AND EVERY YEAR.
THE BUSINESS PARK TIF REALLY ONLY SAVES ITSELF INTO A POSITION TO DO CAPITAL PROJECTS.
THEY SPENT SOME GOOD CAPITAL MONEY IN FISCAL YEAR 23, VERY MINOR AMOUNT IN 2024.
THIS YEAR, THEY'RE BANKING THEIR DOLLARS.
>> SAME QUESTION AGAIN, WHEN WAS THE BUSINESS PARK TIF ESTABLISHED?
>> ESSENTIALLY, THAT WAS A SECTION OF VACANT FARMLAND VALUATION OF THE BUSINESS PARK AT THAT TIME WAS?
>> I'LL OPEN THEM ALL, 25 WAS, 113, 877.
>> SO 112 MILLION IS THE DELTA?
[03:05:02]
>> YEAH. THEY HAD THE O'REILLY'S WAS ALREADY OUT THERE, THE DISTRIBUTION CENTER, BUT BECAUSE THERE WAS A TAX ABATEMENT IN PLACE AT THE TIME, THAT'S WHEN THE VALUE IS 400.
>> DID YOU SAY 2009 ALSO? IT'S A 30 YEAR.
>> O'REILLY WAS ACTUALLY THERE BEFORE THAT.
WE'RE 15 YEARS AT THE BUSINESS PARK. THANK YOU.
>> JARRETT, I NOTICE WE HAVE A DEBT SERVICE FOR CENTRAL BUSINESS DISTRICT, AND THEN WE DON'T HAVE ONE FOR LUBBOCK BUSINESS PARK.
WHAT DO WE HAVE FINANCED IN THE CENTRAL BUSINESS DISTRICT?
>> IN CENTRAL BUSINESS DISTRICT, A LOT OF IT WAS FOR THE UNDERGROUND DUCK SYSTEM THAT THEY PUT IN TO BE ABLE TO PUT THE UTILITIES UNDERGROUND.
IN FACT, PROBABLY 90% OF IT WAS FOR THAT.
SOME OF IT WAS FOR IMPROVEMENT AND THE RIGHT AWAY, SOME OF IT, THEY DID ONE FOR A SEWER LINE OR A WATER LINE DOWNTOWN.
BUT MOST OF IT WAS THE DUCK SYSTEM.
>> WE'LL GO TO THE NORTH OVERTON TIF.
PRIOR YEAR, 5.2 MILLION IN THEIR INCREMENT, 5.4 MILLION IN THE NEW YEAR.
THEN YOU'VE GOT INTEREST EARNINGS, WHERE YOU SEE THE HOTEL 1% SURCHARGE IN THE HOTEL MOTEL TAX COLLECTIONS, THAT IS ALL ASSOCIATED WITH THE CONFERENCE CENTER SIDE OF THE OVERTON HOTEL.
YOU WILL SEE ONE OF THOSE TWO NUMBERS AGAIN WHEN WE GET DOWN TO THE HOT TAX ALLOCATION.
YOU SEE IN THE MIDDLE PART AGAIN, YOUR EXPENDITURES.
THE DEBT SERVICE THAT'S IN THE MIDDLE THERE, THAT DEBT SERVICE IS ALL ASSOCIATED WITH THE CONFERENCE SIDE OF THE OVERTON HOTEL, 100% OF IT.
YOU SEE A TRANSFER TO CIP IN THE AMOUNT OF $202 MILLION.
TOTAL EXPENDITURES OF JUST UNDER FIVE MILLION, SO IT'S LESS THAN THEIR REVENUE.
AGAIN, THAT FALLS INTO THEIR RESERVE BECAUSE THEY DO HAVE DEBT SERVICE, THERE'S A DEBT SERVICE RESERVE.
HOLD BACK ON THAT NUMBER, LEAVING THEM WITH JUST OVER 9.2, JUST NEARLY $9.3 MILLION IN EXCESS RESERVES.
THIS IS ONE THAT IS NOT FAR FROM EXPIRING.
THIS ONE IS NOT FAR FROM EXPIRING.
YOU DO SEE WHEN YOU ROLL OUT THEIR FIVE YEAR PLAN, YOU SEE TWO YEARS THAT HAVE PLUG NUMBERS IN THEM FOR CIP.
THEY HAVE REALLY BEEN A VERY SUCCESSFUL TIF, AND THEY HAVE DONE MOST OF THEIR WORK.
THEY STILL HAVE A LITTLE MORE TO GO, BUT THEY HAVE DONE MOST OF THAT.
THIS ONE WILL STILL HAVE A CASH BALANCE WHEN IT EXPIRES.
>> AS YOU SAID EARLIER, WHEN THEY HAVE A CASH BALANCE, THAT EITHER COMES BACK TO THE TAXING ENTITIES.
>> PRO RATA BASIS. OR THEY CAN USE IT ALL UP IN THEIR LAST YEAR, I GUESS, IF THEY HAD SOMETHING.
>> GOT TO BE AN ELIGIBLE EXPENSE.
>> IT GOT TO BE AN ELIGIBLE EXPENSE.
HERE'S THE ALLOCATION OF THE TWO MILLION DOLLAR FOR CAPITAL, GENERAL PUBLIC IMPROVEMENTS AND MORE STREET UPGRADE AND REPLACEMENT.
GO TO COMMUNITY DEVELOPMENT REAL QUICK.
AGAIN, YOUR COMMUNITY DEVELOPMENT DEPARTMENT IS REALLY ENTIRELY A GRANT FUNDED OPERATION.
THE WORD ENTITLEMENT IS NOT OURS.
THAT IS THE FEDERAL WORD FOR HOW THEY DO THE FORMULA FUNDING THAT COMES INTO US.
YOU WILL SEE THAT WE'RE GOING DOWN SLIGHTLY.
WE WERE PROVIDED 2.2 MILLION A YEAR AGO. NOW 2.2.
WE HAVE ALWAYS MAINTAINED A SMALL AMOUNT OF PROGRAM INCOME.
THAT IS PART OF THE DOLLARS THAT ASSISTED IN TAKING DOWN THE OLD APARTMENT COMPLEX THAT WE NEEDED TO GET DOWN OVER THERE.
THAT'S WHY YOU'RE NOT SEEING IT IN THE CURRENT OR WILL REALLY BE IN THE FUTURE YEAR.
YOU HAVE 2.2 MILLION DOLLAR ROUGHLY IN FUNDING SOURCES, ABOUT ONE MILLION DOLLAR IN EXPENDITURES.
THEN YOU SEE THE FUND LEVEL GRANTS OUT FOR PUBLIC SERVICE FOR NON PUBLIC SERVICE, TAKING IT TO THE 1.19 AND COMING JUST ALMOST TO A BALANCE 2.19 VERSUS 2.16 ON YOUR FUNDING.
[03:10:02]
THIS IS THE PROGRAM THAT MS. MURPHY AND HER TEAM ADMINISTER.THESE ARE THE SPECIFIC GRANT PROGRAMS THAT COME OUT OF THERE.
THE ONE ON THE TOP IS WHAT WE CALL THE HOME PROGRAM.
LIKE A LOT OF THESE, IT CONTINUES TO DECLINE.
COUNCIL, REMEMBER THAT AT THE LOCAL LEVEL, YOU HAVE HELPED MAKE UP THE DIFFERENCE, AND IT'S NOT LITERALLY BECAUSE WE DON'T GO BY THE FEDERAL RULE, YOU DO IT BY A LOCAL RULE.
YOU HAVE BEEN MAKING THAT UP THROUGH THE NORTH AND EAST LUBBOCK INFRASTRUCTURE FUND, WHICH IS YOUR OIL ROYALTIES.
WHILE THE FEDERAL FUNDING IS DECLINED, STILL HAVE DOLLARS AVAILABLE.
THAT NORTH AND EAST LUBBOCK FUND WAS STARTED WITH ITS PRIMARY GOAL OF LET'S DO THE SAME THING THAT HUD MONEY DOES, BUT LET'S DO IT FOR THOSE PEOPLE THAT NEED IT AND ARE NOT ELIGIBLE FOR HUD FOR VARIOUS DIFFERENT REASONS.
BUT SHORT VERSION, WE HAVE NO WAY TO SAY ANYTHING OTHER THAN THESE, WILL PROBABLY CONTINUE TO TRICKLE DOWN OVER TIME.
YOU'VE GOT AGAIN, THE HOME PROGRAM AT THE TOP, EMERGENCY SOLUTIONS GRANT UNDERNEATH THAT.
WHAT YOU HEAR PEOPLE CALL CEAP OR THE COMPREHENSIVE ENERGY ASSISTANCE PROGRAM.
IT HAS STAYED SOMEWHAT FLAT, TWO MILLION TO TWO MILLION.
WE HAVE A FEW OTHER SOME PRIOR YEAR CARRYOVER DOLLARS THAT WE'VE USED, SO THEY DON'T PULL UP INTO THE NEW MONEY.
THEN YOU'VE GOT YOUR GRAND TOTAL.
IF YOU'RE ASKING FOR THE BOTTOM LINE, WE'RE GOING FROM JUST UNDER 6.3 MILLION TO RIGHT AT 5.5 MILLION.
>> REALLY QUICKLY, JARRETT, FOR EDUCATIONAL PURPOSES FOR EVERYBODY.
CAN YOU TALK ABOUT ALL THE SERVICES THAT COMMUNITY DEVELOPMENT ACTUALLY PROVIDES? LIKE, WHAT ARE THESE GRANTS PROVIDE TO OUR CITIZENS?
>> THAT IS A GREAT QUESTION, AND I WOULD DO A HORRIBLE JOB ANSWERING IT.
I'M GOING TO HOPE MS. MURPHY IS STILL OUT IN THE AUDIENCE BECAUSE SHE WILL DO A GREAT JOB.
GOOD AFTERNOON. ALL OF OUR PROGRAMS, BASICALLY, WE ARE ASSISTING LOW MOD INCOME CITIZENS.
WE DO MINOR REHAB PROGRAMS, ARE VERY SUCCESSFUL, AS MR. ATKINSON WAS TALKING ABOUT.
WE USE OUR CDBG FUNDING FOR THAT.
WE ALSO USE FOR THE NLA FUNDS FOR PEOPLE THAT ARE NOT ABLE TO DO.
THEY DON'T MEET THE INCOME REQUIREMENTS OF 80% OR LOWER.
THEN ALSO WE HAVE EMERGENCY SOLUTION GRANT THAT'S ASSISTING HOMELESS.
BASICALLY, IT'S HOMELESS PREVENTION AND RAPID REHOUSING, SO HOUSING IS WHAT WE DO.
OUR HOME GRANTS ARE ALSO FOR AFFORDABLE HOUSING.
WE'VE CONCENTRATED IN THE RECENT YEARS ON AFFORDABLE RENTAL PROPERTY.
ALSO, IF YOU'LL SEE THE DECREASES, THIS IS PRETTY MUCH TRENDING OUT WHERE WE HAD A LOT OF CARES ACT MONEY COMING THROUGH [INAUDIBLE] AND RPA MONEY COMING THROUGH [INAUDIBLE], NOT THE RPA MONEY THAT YOU SEE LOCALLY, SO WE HAD A LOT OF CARES ACT MONEY, THAT'S WHY YOU'RE GOING TO SEE A LOT OF THESE GRANTS ARE LEVELING OUT.
BUT THOSE ARE ALL THE PROGRAMS. BUT THE BIGGEST PROGRAM THAT WE'VE SEEN IN JUST THIS LAST YEAR IS OUR CA PROGRAM, AND WE ARE GETTING AS MUCH FOR THAT GRANT AS WE DO OUR CDBG GRANT, WHICH IS UNHEARD OF.
BUT IT'S BECAUSE OF THAT ENERGY COST IS GETTING SO HIGH, SO THAT IS THROUGH HEALTH AND HUMAN SERVICES.
WE GET THAT THROUGH THE TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS, THAT'S A PASS THROUGH GRANT.
THIS LAST YEAR HAS BEEN INTERESTING BECAUSE NOW INSTEAD OF HAVING A VENDOR AGREEMENT, WHICH IS A STATE REGULATION THAT WE HAVE TO HAVE VENDOR AGREEMENT WITH THOSE ENERGY PROVIDERS THAT WE WRITE THE CHECK TO AND MAKING THOSE PAYMENTS FOR THE CITIZEN, WE'VE HAD MAYBE 4,5 VENDOR AGREEMENTS, WE'VE HAD TO HAVE 20 VENDOR AGREEMENTS THIS YEAR SO WE HAVE A LOT OF DIFFERENT PROVIDERS THIS YEAR.
I THINK IT'S IMPORTANT TO ALSO POINT OUT THAT A LOT OF THE PROGRAMS WE'VE NOT BEEN ABLE TO ACTUALLY ACHIEVE BECAUSE OF LACK OF CONTRACTORS, LACK OF JUST SUPPLIES.
OUR COST. WHERE WE WILL BE ABLE TO DO A ACCESSIBLE BATHROOM, WHERE WE'D HAVE A ROLL IN SHOWER,
[03:15:02]
MAKE IT MORE ACCESSIBLE, GET IT UPGRADED, AND DO WINDOWS AND DOORS AND A ROOF, WE CAN'T DO THAT ANYMORE.IT'S JUST TOO EXPENSIVE, SO WE HAVE TO DO THE HIGHEST PRIORITY NEED.
WE ARE GETTING MORE CONTRACTORS.
THANK YOU FOR HELPING US WITH THAT.
BUT WE ALSO ARE SEEING MAYBE A LITTLE BIT DIFFERENT COST.
WE'RE STARTING TO FIND WINDOWS QUICKER.
WE'RE NOT HAVING TO WAIT SIX TO NINE MONTHS FOR WINDOWS, SO THAT'S HELPING A LOT.
>> BUT IT IS ALSO A VERY THOROUGH VETTING PROCESS SO NOT ANYBODY QUALIFIES.
THIS IS THOROUGH. THANK YOU FOR THAT.
>> LET'S TAKE ANOTHER SHORT BREAK HERE BEFORE WE GET INTO THE ECONOMIC DEVELOPMENT, 10 MINUTES. THANK YOU.
CAN WE GET OUR SCREENS BACK? WE CAN LOOK AT OUR BOOKS, BUT NOBODY ELSE WILL BE ABLE TO SEE THE EXCITING INFORMATION WE'RE LOOKING AT.
>> EVERYBODY IN THE AUDIENCE REALLY LOOKING FORWARD TO SEEING THIS.
THE THREE OF THEM THAT ARE AWAKE.
>> DR. WILSON HAS A COMMENT, QUESTION?
>> GARRETT, WHILE WE'RE WAITING ON OUR SCREENS TO RELIVE THEMSELVES, IN THE BREAK, SOMEBODY HAD ASKED A REALLY GOOD QUESTION ABOUT THE DOWNTOWN PARK, AND WHO IS FUNDING THAT? WHO IS RESPONSIBLE FOR THAT? IS ANYTHING HAPPENING? CAN YOU MAYBE GIVE US SOME ENLIGHTENED INFORMATION ON THAT?
UNDERSTAND THAT THAT'S REALLY BEEN SET ASIDE FROM US FOR THE MOMENT.
IT WAS SET UP AND APPROVED BY THE COUNCIL TO BASICALLY LEASE TO A NONPROFIT, YOUR CBD TF THAT WE LOOKED AT THEIR BUDGET.
THEY HAVE FUNDED THE DEMOLITION, SO THE OLD LP&L BUILDING THAT WAS THERE FILLING IN THE BASEMENTS, AND THE DESIGN FOR HERE'S WHAT THE PROPOSED PARK WOULD LOOK LIKE.
IT IS SET UP INTENTIONALLY BY A PRIOR COUNCIL.
THERE'S NOBODY ON THE DAIS HERE TODAY THAT WAS THERE THEN.
IT WAS SET UP FOR THE FUND RAISING TO CONSTRUCT THE PARK TO BE PRIVATE.
THERE IS A GROUP WORKING TO RAISE THAT DOLLAR.
MY UNDERSTANDING THERE'S SOMEWHERE AROUND 4.5 THAT'S EITHER BEEN RAISED OR IS PLEDGED, AND THEY NEED EIGHT TOTAL TO START CONSTRUCTION.
BUT WHAT WE CAN DO IS, WE'LL GET BETTER INFORMATION AND MY STAFF LIAISON TO THAT IS NOT HERE TONIGHT, AND WE'LL GET THAT TO Y'ALL. MOVING FORWARD.
>> LET'S START WITH THE ECONOMIC DEVELOPMENT DEPARTMENT.
COUNCIL, THIS IS OUR INTERNAL ECONOMIC DEVELOPMENT DEPARTMENT. HERE WE GO.
WALK ACROSS THE TOP AND I MAY HAVE MISSTATED THAT A LITTLE BIT.
THIS IS THE PORTION OF THE M&O PROPERTY TAX THAT IS BROADLY ASSIGNED TO ECONOMIC DEVELOPMENT SO THIS IS THE TOP LINE SET OF NUMBERS.
HERE IS YOUR PROPERTY TAX ALLOCATION THAT YOU SEE OVER THE YEAR, STARTING IN FY21, AT JUST A HAIR OVER FOUR MILLION, RISING AS HIGH AS 4.4 MILLION, AND THEN NOW DOWN TO ROUGHLY 3.5, 3.461.
YOU SEE THE OTHER RELEVANT PIECES THERE THAT CARRY IT OVER, BUT YOU END UP WITH A TOTAL FUNDING SOURCE IN THIS CATEGORY, AND WE'LL LOOK AT IT IN MORE DETAIL, 4.1 MILLION DOLLARS, AND THEN GO TO THE BOTTOM IN THE EXPENDITURES AND THIS WILL SHOW YOU THE DIVISION A LITTLE BIT BETTER.
THERE'S $86,000 IN COMPENSATION THAT IS SALARY OF COURSE, BENEFITS CARRIED ON, MOVE DOWN TO THE BOTTOM.
YOU HAVE YOUR TRANSFER TO TRANSIT, SO THAT'S WHAT WE LOOKED AT IN THE CITY BUS BUDGET, AND THEN THE MARKET LUBBOCK TRANSFER, WHICH CURRENT YEAR WAS 3.99, YOUR BUDGET YEAR, IT'S PROPOSED AT 3.5, AND THEN YOU HAVE YOUR COMPENSATION ADJUSTMENT OF 4,300, THAT IS FOR MY IN HOUSE PEOPLE THAT DO THIS.
IF YOU WOULD, WELL, WE'RE GOING TO HAVE TO GET TO THE FARTHER BACK IN THE BOOK TO DO THE REST OF THIS.
BUT OPERATIVE PARTS, TODAY, THIS WOULD FUND A PORTION OF THE INTERNAL BUSINESS DEVELOPMENT DEPARTMENT, THE $400,000 TO CITY BUS, WHICH AGAIN, IS GENERAL FUND, BUT IT'S ALL THE SAME AND THEN 3.5 MILLION IN MARKET LUBBOCK.
THE DETAIL BEHIND ALL THESE WILL BE IN SOME LATER SLIDES.
LET'S DO GATEWAY, IT'S GOING TO BE QUICK.
[03:20:01]
HERE'S YOUR GATEWAY MODEL.AGAIN, WE TALKED PREVIOUSLY HOW GATEWAY WAS SET UP TO WORK.
IT WAS TO DEVELOP AND CONSTRUCT NEW GATEWAY TYPE STREETS TO THE CITY.
OF COURSE, THE HUGE SUCCESS STORY OUT OF GATEWAY.
THAT IS HOW THE CITY IS PART OF THE MILWAUKEE CORRIDOR WAS FUNDED.
GATEWAY HAS ALSO HELPED WITH SOME OTHER STREETS THROUGH THE PART OF 114TH THAT IT HELPED WITH.
I THINK THERE WERE SOME DOLLARS FROM GATEWAY THAT WENT TO THE FLYOVER ON MARSHA SHARP, THAT WASN'T PART OF THE ORIGINAL PROJECT.
THE GATEWAY REVENUE IS A PORTION OF YOUR CITY FRANCHISE FEES.
WE COVERED THOSE BACK ON SOME OF THE EARLY SLIDES YESTERDAY.
FOR NEXT YEAR, THAT TRANSFER OUT OF THE GENERAL FUND, THE FRANCHISE FEE MONEY INTO GATEWAY IS $9,000,000.
ADDED TO THEIR INTEREST ABOUT 9.3 MILLION DOLLAR TOTAL.
THE TRANSFER TO DEBT SERVICE IS JUST UNDER $8.8 MILLION.
IN ITS ORIGINAL CREATION, GATEWAY WAS DESIGNED TO BE A DEBT SERVICE FUND.
IT WAS NOT ORIGINALLY SET UP TO BE A CASH CAPITAL.
IT WAS ALL TO BE DEBT SERVICE.
YOU'VE GOT YOUR FIRST ROUGHLY $8.8 MILLION OUT OF THEIR DOLLARS THAT CONTINUE TO FUND THEIR DEBT SERVICE.
YOU SEE THAT THE BIG DROP OFF IN DEBT SERVICE HITS IN FISCAL YEAR 30 SO DROP FROM 8.8 TO 3.8.
THIS YEAR, WE HAVE PROPOSED TO USE $500,000 IN CASH FROM GATEWAY TO ENHANCE THE INSIDE THE LOOP STREET MAINTENANCE.
THAT'S WHAT GOT YOU TO THE 14.5 AND THEN A $300,000 TO STREETS CAPITAL.
REMEMBER, THAT IS FOR YOUR ONGOING ADA RAMPING PROGRAM.
SO $800,000 IS COMING OUT, TAKING YOU TO JUST ABOUT 9.6 IN EXPENSES, SO IT IS SPENDING MORE THAN IT'S TAKING IN THIS YEAR.
LET'S GO DOWN THE LINE BELOW THAT.
WE'LL LOOK AT YOUR FUND BALANCE.
YOU START THE YEAR AT ABOUT 6.4, YOU HAVE A REQUIREMENT OF 6.7.
THAT IS NOT AN EXTERNAL REQUIREMENT, THAT IS ENTIRELY AN INTERNAL REQUIREMENT.
THIS IS NOT A RATED FUND, SO WE SET THAT UP INTERNALLY.
WE USE 75% IS HOW WE'RE CALCULATING THAT RESERVE FUND REQUIREMENT, 75% OBLIGATION.
IT DOES TAKE YOU BELOW THE LINE, BUT IF YOU'LL WALK WITH ME TO THE VERY NEXT YEAR, FISCAL YEAR '26, YOU SEE THAT BOTH THE BUDGET TURNS INTO A CASH POSITIVE BUDGET AND YOUR EXCESS RESERVES GOES RIGHT BACK POSITIVE AGAIN AND WE HAVE CONTINUED TO CARRY THE 500,000 FORWARD, AND THEN IN YOUR OUT YEARS, WE'VE INCREASED IT EVEN MORE BECAUSE THE DEBT SERVICE IS COMING DOWN AT THE SAME TIME THAT THE REVENUE IS GOING UP.
HERE'S YOUR CAPITAL BUDGET. WE TALKED ABOUT THAT.
READY TO DO HOTEL OCCUPANCY TAX.
HAD SOME REALLY GOOD QUESTIONS YESTERDAY.
THOSE OF YOU THAT CAUGHT ME AFTER THE MEETING WITH SPECIFICS, THANK YOU, I APPRECIATE THAT.
THIS HAS NOT BEEN IN PREVIOUS BUDGET SLIDES, BUT IT'S REALLY JUST A SIMPLE PRIMER, AS SIMPLE AS YOU CAN MAKE IT WITH HOT TAX OF HOW IT WORKS.
HOW IT WORKS IN THIS CASE IS AN ANSWER TO THE QUESTION OF WHAT COULD YOU SPEND DOLLARS ON OUT OF HOTEL OCCUPANCY TAX? YOU HAVE TO MEET CRITERIA 1, AND THEN ONE OF THE NINE THAT IS LISTED UNDER NUMBER 2.
THERE'S A LOT OF STATUTORY DETAIL UNDERNEATH SOME OF THESE, BUT LET'S JUST GO ON THE SIMPLEST VERSION POSSIBLE.
THE CRITERIA YOU MUST ALWAYS MEET TO SPEND HOT TAX IS EVERY EXPENDITURE MUST DIRECTLY ENHANCE AND PROMOTE TOURISM AND CONVENTION AND HOTELS.
WHEN YOU HEAR THE PHRASE HEADS IN BEDS, THAT'S CRITERIA NUMBER 1, HEADS IN BEDS.
IF YOU CAN SATISFY THAT, MATCH WITH ONE OF THESE NINE, YOU CREATE AN ELIGIBLE EXPENSE.
THE NINE R, NUMBER 1, DOLLARS FOR THE ESTABLISHMENT, IMPROVEMENT OR MAINTENANCE OF A CONVENTION CENTER OR VISITOR INFORMATION CENTER.
REMEMBER, YOUR CIVIC CENTER, ALL OF THOSE LOSSES AND ALL OF THE CAPITAL ARE COVERED BY THIS.
THERE'S CATEGORY NUMBER 1, WORKS WELL.
CATEGORY NUMBER 2, PAY THE ADMINISTRATIVE COST TO FACILITATE CONVENTION REGISTRATION.
SO THINK WHEN YOU GO TO A VERY LARGE CONVENTION AND THEY HAVE 20 STATIONS ALL SET UP, THEY'RE PROCESSING THE ATTENDEES IN, THEY'RE HANDING OUT THE BADGES AND THE BAGS AND ALL OF THAT.
[03:25:02]
NUMBER 3, PAY TO ADVERTISE, SOLICIT, OR PROMOTE THINGS THAT ATTRACT TOURISTS AND CONVENTION DELEGATES TO THE CITY OR TO ITS VICINITY.WHAT IS IT IN APPLICATION? YOU'RE ADVERTISING EVENTS AT YOUR CIVIC CENTER, YOU'RE ADVERTISING EVENTS AT TOURNAMENT STYLE FACILITIES.
NUMBER 4, AN EXPENDITURE THAT PROMOTES THE ARTS.
ONE OF THE DETAILS THAT COMES UNDERNEATH THERE, THIS IS THE CATEGORY THAT IS CAPPED AT 15% OF YOUR TOTAL.
YOU HAVEN'T SEEN YOUR TOTAL YET, IT'S 9.7 MILLION FOR THE NEW YEAR, SO THAT ONE'S GOT A CAP ON IT.
FUNDING HISTORICAL RESTORATION OR PRESERVATION PROGRAMS. NUMBER 6, FUNDING CERTAIN EXPENSES, INCLUDING PROMOTIONAL EXPENSES DIRECTLY RELATED TO A SPORTING EVENT WITH COUNTIES WITH A POPULATION OF LESS THAN ONE MILLION.
THIS IS A SERIES OF BRACKET BILLS. WE FIT INTO THAT.
THE NEXT, FUND ENHANCEMENT OR THE UPGRADE OF EXISTING SPORTS FACILITIES OR SPORT FIELDS FOR CERTAIN MUNICIPALITIES.
WE ARE ONE OF THE CERTAIN MUNICIPALITIES.
REMEMBER A YEAR AGO, A PROJECT WAS APPROVED JUST TO DO THE NEXT SET OF IMPROVEMENTS AT BERL HUFFMAN, PRIMARILY PAID FOR WITH HOT FUNDS.
THE BULK OF THOSE DOLLARS ARE DOLLARS COMING BACK TO US FROM DOLLARS THAT IN YEARS PAST HAVE BEEN GRANTED TO VISIT LUBBOCK OR TO LUBBOCK SPORTS.
THERE WAS SOME EXTRA THAT CAME BACK THAT HAD BEEN IN YOUR PRIOR TAX TRANSFER OVER THERE, BUT THAT CATEGORY IS BEING USED.
NUMBER 8, FUND A TRANSPORTATION SYSTEM FOR TOURISTS.
I DON'T KNOW THAT WE SPECIFICALLY HAVE ONE OF THOSE, BUT IT'S AN ELIGIBLE CATEGORY.
THEN NUMBER 9, GENERAL SIGNAGE THAT DIRECTS TOURISTS TO SITES AND ATTRACTIONS THAT ARE VISITED BY HOTEL GUESTS IN THE MUNICIPALITY.
I THINK THE COMMON OR AT LEAST THE CURRENT BUZZWORD FOR THAT IS WAY FINDING, SO IT'S THE NICE FANCY SIGNS THAT ARE NOT YOUR NORMAL STREET SIGNS.
HERE IS AN ARTS DISTRICT, HERE IS A MUSEUM, THINGS LIKE THAT.
YOU FIND SOMETHING THAT FITS UNDER ONE OF THOSE NINE, AND THAT ALSO DIRECTLY SUPPORTS TOURISM, CONVENTION, AND HOTEL.
QUESTIONS ON THAT AND IF THERE ARE HARD QUESTIONS, I'M GOING TO ASK MR. WADE TO JUMP IN ON THEM.
>> ONE QUESTION. ARE THERE ANY PERCENTAGE LIMITATIONS ON ANY OF THESE OTHER CATEGORIES OR JUST ON THE CULTURAL AND ART CATEGORY? DO IF YOU KNOW.
>> YEAH. THERE'S A 15% LIMITATION ON THE HISTORIC PRESERVATION ONE AS WELL.
THAT WOULD BE NUMBER OF HISTORIC RESERVATION OR PRESERVATION PROGRAMS.
>> WE'VE HAD TWO MUSEUMS THAT WE OPERATE, WOULD THOSE FALL UNDER THAT CATEGORY?
>> WELL, IT DEPENDS ON WHAT EXACTLY ABOUT THE MUSEUMS THAT WE'RE TALKING ABOUT.
IF IT'S A PROGRAM OR SOMETHING, IT STILL HAS TO BE.
MR. ATKINSON DID A GOOD JOB OF PUTTING THIS ALL ON ONE PAGE.
IT'S NOT ALL ON ONE PAGE IN THE STATUE, RIGHT?
>> IT'S STILL FUNDING HISTORICAL RESTORATION OR PRESERVATION PROGRAMS THAT DIRECTLY ATTRACT TOURISTS TO THERE FOR THAT PROGRAM ITSELF.
IF IT'S JUST A MUSEUM THAT WE HAVE, PROBABLY NOT JUST THE MUSEUM, BUT IF YOU HAVE A PARTICULAR PROGRAM IN A MUSEUM THAT WOULD ATTRACT PEOPLE TO IT, THEN YES, YOU PROBABLY COULD SIT THERE AND USE IT FOR THAT PARTICULAR PROGRAM.
>> MR. WADE, THE ANNUAL PROGRAM FOR THE WORLD WAR II VETERANS AND THEIR FAMILIES AT SILENT WINGS, THAT'S A DISCRETE PROGRAM.
THE VAST MAJORITY COMING FROM OUTSIDE, SO THAT COULD POSSIBLY BE ONE?
>> POSSIBLY. THE DEVIL'S ALWAYS IN THE DETAILS.
>> IS THERE A PERCENTAGE REQUIREMENT FOR HOW MANY PEOPLE WHO VISITED HAVE TO COME OUT OF TOWN? YOU'RE ALWAYS GO TO IN TOWN IF YOU'RE GOING TO VISIT?
>> NO. THERE'S PLENTY OF ATTORNEY GENERAL'S OPINIONS OUT THERE THAT KEEP TALKING ABOUT SPLITTING THOSE HAIRS.
THE MORE FACTS YOU HAVE THAT SHOW MORE PEOPLE COMING IN FOR THAT PARTICULAR THING, THEN OBVIOUSLY, THE BETTER POSITION THAT WE'RE IN TO DEFEND IT.
[03:30:02]
YOUR HOTEL OCCUPANCY ALLOCATION THAT YOU HAVE THIS YEAR, YOUR TOTAL.CURRENT YEAR, WE BUDGETED $9.4 MILLION IN REVENUE.
FOR THE NEW YEAR, THE BUDGET YEAR, WE'RE BUDGETING 9.7 MILLION.
YOUR HOTELS IN LUBBOCK ARE REALLY DOING PRETTY DARN GOOD.
TOTAL REVENUE THAT WE SHOW AVAILABLE FOR ALLOCATION IS $9.7 MILLION.
DOWN BELOW ARE THE EXPENDITURES IF WE FOLLOW THE PRIOR MODELS.
ONE THING YOU WILL NOTICE, THEY'RE ALL EITHER FLAT OR JUST REALLY CLOSE TO FLAT YEAR OVER YEAR.
CIVIC CENTER OPERATIONS AND MARKETING, IT WAS 2.609-2.600.
THE CONVENTION AND TOURISM BUREAU, THAT IS VISIT LUBBOCK, AND CURRENT YEAR ALLOCATIONS 3.7, NEW YEAR ALLOCATION 3.7.
THE CIVIC LUBBOCK, INC., GRANT PROGRAM.
CURRENT YEAR IS 556, NEW YEAR IS 574, VERY SLIGHT INCREASE THERE.
THE CATEGORY OF VISITING PARTICIPATORY AND SPECTATOR SPORTS, THAT IS LUBBOCK SPORTS AUTHORITY, 1.2-1.2.
TRANSFER TO TIFF CONFERENCE CENTER, THAT IS THE NORTH OVERTON THAT WE LOOKED AT JUST A MOMENT AGO.
THE BUDDY AND MARIA ELENA HOLLY PLAZA DEBT.
THAT'S JUST STRAIGHT DEBT SERVICE FOR BOTH OF THOSE TWO.
TRANSFER TO CAPITAL AT CIVIC CENTER.
WE DID COME DOWN JUST A LITTLE BIT ON THAT THIS YEAR, BECAUSE OUR NEEDS WERE DOWN JUST SLIGHTLY.
WE ADDED A NEW USE OF HOT TAX LAST YEAR OR THE CURRENT BUDGET, AND THAT WAS TRANSFER TO SPECIFICALLY PAY FOR THE MAINTENANCE ON OUR TWO TOURNAMENT COMPLEXES.
THAT IS BERL HUFFMAN AND TOM MARTIN, ONE IS SOCCER, ONE IS BASEBALL AND SOFTBALL.
THIS YEAR, AND THIS TIES TO OUR BUDGET DISCUSSION FROM THE FIRST DAY, VISITOR SUPPORT, AND THAT IS THOSE EXPENSES THAT WE FELT WERE ELIGIBLE, YET, SOME OF THE MUSEUM, SOME IN PARKS THAT WE ASSIGNED TO HOT.
THAT WAS A REDUCTION IN A GENERAL FUND COST.
IF THESE ALLOCATIONS ARE TO REMAIN THE SAME OR CLOSE TO THEM, IT'S BALANCED, 9.7 IN, 9.7 OUT.
NOW, YESTERDAY I WAS ASKED A QUESTION WE HAD MENTIONED A RESERVE, AND WHERE DOES THAT COME FROM? REMEMBER IN THE PAST, YOU DID ALLOCATE OUT, PRIOR COUNCILS ALLOCATED OUT DOLLARS ON A PERCENTAGE BASIS RATHER THAN HERE'S AN ASK AND HERE'S AN ANSWER.
FOR EXAMPLE, IF WE HAD BUDGETED 9.4 AND THE REAL REVENUE CAME IN AT 9.5, $100,000 WAS REDISTRIBUTED TO YOUR GRANTEES ON A PROPORTIONAL BASIS.
THAT IS WHERE YOU WILL START TO HAVE A LITTLE BIT OF ACCUMULATION.
AGAIN, IT HASN'T HAPPENED AND IT WON'T HAPPEN UNTIL SEPTEMBER 30TH OF THIS YEAR.
BUT THAT'S A WAY THAT YOU CAN START THAT.
WHEN WE DID THAT A YEAR AGO, THE COUNCIL'S DISCUSSION AND THE ULTIMATE VOTE WAS THAT FUND WOULD BE HELD FOR FUTURE USE BY THE COUNCIL FOR AN ELIGIBLE EXPENSE.
GO BACK TO THE PRIOR PAGE FOR THAT ONE.
ANY QUESTIONS TO THIS POINT, ESPECIALLY IF THEY'RE EASY ONES? NO. THIS 379,000 ON THIS PAGE MATCHES THE 379,000 ON THAT PAGE.
WE SET THAT MONEY UP SPECIFICALLY AS A CAPITAL ACCOUNT SO THAT THE PARKS PEOPLE THAT DO THIS WORK CAN CHARGE TO THIS ACCOUNT, AND WE THINK THAT WILL HELP US QUITE A BIT WITH THE ACCOUNTABILITY FOR THE USE OF THOSE DOLLARS.
WE DIDN'T JUST PUT IT INSIDE THE PARK'S BUDGET WHERE I CAN'T PROVE WHERE THE MONEY WAS USED.
DOING IT INSIDE A CAPITAL ACCOUNT, YOU CAN.
THIS IS YOUR ACCOUNTABILITY ITEM HERE.
I'D REALLY LIKE TO LEAVE IT THAT WAY.
>> REAL QUICK. WHAT IS THE DIFFERENCE BETWEEN THIS SPECTATOR SPORTS COLUMN THAT WE PUT 1.2 IN AND WHAT WE'RE DOING ON OUR BALL FIELDS?
>> ON THE BALL FIELDS, THAT IS FUNDING LITERAL COST AND EXPENSE FOR US TO MAINTAIN TOM MARTIN AND BERL HUFFMAN.
UNDER THE TRANSFER TO THE PARTICIPATORY AND SPECTATOR SPORTS, THAT IS MONEY THAT GOES TO LUBBOCK SPORTS AUTHORITY THAT IS USED FOR MARKETING, FOR PROMOTIONS, FOR ATTRACTING TOURNAMENTS.
I BELIEVE IF THEY NEED TO, THEY CAN ASSIST IN EXPENSES TO DO THAT.
[03:35:02]
ONE IS A DIRECT COST TO US, THE SMALL NUMBER, AND THE OTHER IS A BROADER CATEGORY THAT GOES TO LUBBOCK SPORTS.>> THEN I'M JUST TRYING TO FIGURE OUT WHAT ALL THIS MONEY IS USED FOR, BASICALLY.
CONVENTION AND TOURISM BUREAU.
THAT'S ONE OF OUR HIGHEST PAID OUT CATEGORIES AT 3.6.
DO WE KNOW THE BREAKDOWN OF WHAT THAT MONEY IS USED FOR?
>> I'VE GOT A PROPOSED BUDGET LATER ON IN THESE SLIDES AND WE GO AHEAD AND FLIP TO THEM.
WE ALSO HAVE MR. OSBORNE HERE TO ANSWER QUESTIONS.
>> MAYOR, WOULD JUST BE A GOOD TIME FOR ME TO BLANK THE SCREEN AND THEN FLIP OVER?
>> BUT DIDN'T BREAK IT. THERE WE GO.
COUNCIL, THIS IS THE PROPOSED VISIT LUBBOCK OPERATING BUDGET.
IF YOU LOOK ON THE LEFT, YOU'VE GOT THE REVENUE SIDES OF IT, 150,000 IN INTEREST EARNINGS.
YOU'VE 3.697 THAT WAS ON THE PRIOR ALLOCATION SIDE, AND THEN SOME MISCELLANEOUS REVENUE.
MR. OSBORNE'S GROUP IS SHOWING YOU A USE OF EXCESS RESERVE IN THE NEW YEAR OF 715,004.11 IN THE PRIOR YEAR.
REMEMBER, THOSE ARE DOLLARS THAT ARE GOING OUT TO THE TOM MARTIN COMPLEX.
ON THE RIGHT, YOU SEE HIS PROPOSED EXPENSES.
THEN AT THE PODIUM, YOU SEE MR. OSBORNE HIMSELF.
MAYOR, IF YOU WOULD LIKE, MAYBE COUNCIL COULD ASK QUESTIONS.
>> I BELIEVE MR. COLLINS HAS A QUESTION.
>> I GOT LOST. I THINK THAT WAS FROM TUESDAY.
>> GOOD EVENING, MAYOR AND COUNCIL. THANKS FOR HAVING ME HERE TODAY.
WE DO HAVE A PROPOSED BUDGET IN FRONT OF YOU.
WE VERY MUCH ABIDE BY THOSE SAME RULES THAT YOU SAW EARLIER THAT ALL OF OUR EXPENSES HAVE TO MEET THOSE TWO PARTS OF THE TEST IN ORDER FOR US TO BE SPENDING OUR ITEMS ON THOSE.
BACK IN THE DAY, JUST AS A POINT OF CLARIFICATION, ESPECIALLY FOR SOME OF OUR NEW COUNCIL MEMBERS, LUBBOCK SPORTS AND VISIT LUBBOCK, THE CONVENTION VISITS BUREAU USED TO BE TWO SEPARATE ENTITIES.
AT ONE POINT IN TIME, THE COUNCIL AND THE COMMUNITY DECIDED TO PUT BOTH OF THOSE ENTITIES UNDER MARKET LUBBOCK AS A DBA, AND WE CALL THAT VISIT LUBBOCK.
INTERNALLY, IT'S ALL TOGETHER.
WE WORK VERY CLOSELY HAND IN HAND, AND SO OUR BUDGETS WE DO SPLIT OUT FOR CITY STAFF PURPOSES.
BUT IN REALITY, THE WAY THAT WE HANDLE THINGS IS THAT WE GO AFTER SPORTING EVENTS TO GET THEM HERE AND WE GO AFTER CONVENTION OF VISITORS TO COME.
WE AGAIN, RECEIVE OUR REVENUE NUMBER FROM THE CITY OF LUBBOCK.
THAT NUMBER CAME IN AT THE $4.9 MILLION NUMBER.
WE DO HAVE A FEW ITEMS THAT WE GET FROM INVESTMENT INCOME AND SOME MINOR AMOUNTS RELATED TO THE SALE OF PROMOTIONAL ITEMS AND THE SUCH.
WE DO GO AFTER OTHER FUNDS TO TRY TO HELP FUND THE DIFFERENT GROUPS TO COME TO OUR COMMUNITY.
ONE OF THE BIG FUNDS THAT WE GO AFTER IS THE EVENTS TRUST FUND, AND THAT IS A FUND THAT IS PUT UP AT THE STATE LEVEL FOR GROUPS THAT ARE COMING HERE IN WHICH THEY'RE HOLDING A CHAMPIONSHIP TYPE EVENT OR SOME KIND OF EXCEPTIONAL TYPE MEETING IN WHICH MEETS CERTAIN CLASSIFICATIONS AND CLARIFICATIONS.
WE ARE ABLE TO GET REIMBURSED FOR THE STATES PORTION OF THE SALES TAX GENERATED BY THE PEOPLE THAT CAME FROM OUT OF STATE FROM THAT EVENT.
USUALLY LAGS. WE APPLIED FOR, I BELIEVE EIGHT DIFFERENT EVENTS THIS LAST YEAR.
I THINK WE'VE GOT FOUR THAT WE'RE APPLYING FOR THIS NEXT YEAR.
WE WON'T GET REIMBURSEMENT FOR THE FOUR UNTIL PROBABLY AT LEAST THE YEAR AFTER, IF NOT THE YEAR AFTER THAT.
IT IS A SIGNIFICANT DELAY, AND IT'S SOMETHING THAT WE'VE ACTUALLY BEEN WORKING WITH REPRESENTATIVE TEPPER TO TRY TO GET SOME ASSISTANCE ON.
SOME OF THE REIMBURSEMENT THAT WE GET IS LISTED THERE.
WE DO GET SOMETIMES SOME EVENT REVENUE AS A RESULT OF EVENTS THAT WE'RE HELPING HOST IN THE SUCH, MOSTLY FROM SPORTING EVENTS RELATED.
OUR COMPENSATION, EVEN THOUGH THE NUMBERS LOOK UP SIGNIFICANTLY, IT IS ACTUALLY A 3% RAISE, BUT WE ANTICIPATE SOMEONE RETIRING ON OUR STAFF IN WHICH WE WILL THEN NEED TO
[03:40:01]
OUR PLANS ARE SHE'S GIVING US ENOUGH NOTICE AND WE NEED THE HELP FROM HER TO TRAIN THE NEXT PERSON, THAT WE WILL END UP HAVING DUPLICATE SALARIES THERE FOR A LITTLE WHILE.OUR COMPENSATION DOLLARS ARE UP MORE SIGNIFICANTLY JUST BECAUSE OF THAT, BUT YOU SHOULD KNOW THAT WE'RE PLANNING A 3% RAISE IN OUR COMPENSATION.
THEN FOR THE MOST PART, ADMINISTRATIVE COSTS ARE RELATIVELY CONSISTENT, OUR OFFICE COSTS ARE RELATIVELY CONSISTENT, EXCEPT FOR WE WILL HAVE A NEW LEASE COMING UP THE MIDPOINT OF THIS NEXT FISCAL YEAR FOR US, AND WE'RE NOT YET SURE.
WE HAVE NOT NEGOTIATED THAT YET, AND SO WE DON'T KNOW EXACTLY WHERE THAT WILL LIE, AND WE'VE TRIED TO MAKE SURE THAT WE BUDGETED ACCORDINGLY FOR IT.
THEN UNDER OUR MARKETING SALES EFFORTS, WE'RE HAVING TO REMAIN DECENTLY FLAT AS A RESULT OF OUR OTHER EXPENSES AND THE FACT THAT OUR REVENUES ARE REMAINING PRETTY CONSISTENT.
WE DID ADD A LINE ITEM A YEAR AGO, AND THAT LINE ITEM CONTINUES TO BE THERE, AND THAT IS THE TOURISM CAPITAL IMPROVEMENTS PROJECT.
WE BELIEVE THAT THERE WOULD BE GOOD USE OF FUNDS TO HELP IMPROVE THE TOM MARTIN BALL FIELDS, WHERE WE'VE BEEN WORKING VERY CLOSELY WITH PARKS AND REC TO DO A STUDY ON WHAT NEEDS TO BE DONE TO THOSE FIELDS, AND THEN ALSO WHAT WOULD BE THE BEST USE OF THOSE DOLLARS.
OUT OF VISIT LUBBOCK, WE WOULD BE UTILIZING MUCH OF OUR RESERVES DOWN TO JUST UNDER THREE MONTHS, WE'D BE ABOUT 2.8 MONTHS IN RESERVES, AND THAT WOULD TOTAL ABOUT $5 MILLION THAT WE WOULD PUT FROM VISIT LUBBOCK TO EITHER BUILDING NEW FACILITIES OR RENOVATING EXISTING ONES AS WE DETERMINE IN THIS NEXT YEAR WITH THE BLESSING OF THE COUNCIL.
IT'S ABOUT $5 MILLION. THE MAIN CAVEAT OF THAT IS THAT THE STATE REQUIRES THAT ANY MONIES THAT WE SPEND OUT OF HOT FUNDS ON PARKS RELATED PROJECTS HAS TO BE UTILIZED TO BRING GROUPS AND EVENTS FROM OUTSIDE THAT BRING A LOT OF VISITORS IN.
YOU HAVE TO SHOW WHERE THERE WAS ADDITIONAL IMPACT AS A RESULT OF THOSE EVENTS COMING IN.
THAT'S ONE REASON WHY THE TOM MARTIN COMPLEX, AS WELL AS BERL HUFFMAN, BOTH QUALIFY BECAUSE WE'VE GOT EVENTS THAT CAN BE HOSTED THERE.
WE BELIEVE THAT OVER THE COURSE OF THE NEXT FIVE YEARS, WE COULD ACCOUNT FOR THE FACT THAT WE WERE SPENDING THIS KIND OF MONEY OUT OF VISIT LUBBOCK RELATED TO THOSE BALL FIELDS TO ACCOUNT FOR ALL THAT.
HAPPY TO ANSWER ANY QUESTIONS.
>> JOHN, IF YOU COULD REMIND US OF HOW MUCH VISIT LUBBOCK FUNDS WENT TO BERL HUFFMAN?
>> THERE WAS ACTUALLY NO FUNDS OUT OF VISIT LUBBOCK THAT WENT TO BERL HUFFMAN.
THAT WAS ALL FUNDED OUT OF MARKET LUBBOCK WHEN WE DID THOSE RENOVATIONS.
MARKET LUBBOCK AND VISIT LUBBOCK HAVE TWO DIFFERENT BUDGETS, AND WE DON'T COMMINGLE THOSE FUNDS BECAUSE THERE'S STATE STATUTES THAT WE HAVE TO ABIDE BY ON THE HOT FUNDS.
>> MARKET LUBBOCK FUNDS THAT WENT TO BERL HUFFMAN WERE?
>> ARE THERE MARKET LUBBOCK FUNDS GOING TO TOM MARTIN?
>> IN OUR NEXT BUDGET YEAR, WHEN I GET TO THE MARKET LUBBOCK BUDGET, YES, WE HAVE 2.75 MILLION ALLOCATED OUT OF THAT BUDGET TO ALSO GO TO THE TOM MARTIN COMPLEX.
>> OKAY. ON ANOTHER NOTE, AND CHERYL MAY HAVE THIS NUMBER MORE THAN YOU.
ANY KIND OF PERCENTAGE CHANGE THROUGH COVID REALLY IS SKEWED.
CAN YOU GIVE ME AN IDEA OF WHAT OUR HOT TAX REVENUE WAS IN 2019 PRIOR TO COVID?
>> I HAVE IT IF YOU DON'T, CHERYL.
AT LEAST RELATED TO US, NOT NECESSARILY THE FULL AMOUNT.
>> HOT WAS HIT FOR A COUPLE OF YEARS, PRETTY HARD.
NOW, SALES TAXES DIDN'T AFFECT QUITE AS MUCH FOR TWO MONTHS, MAYBE.
BUT HOT TOOK A LONG TIME TWO YEARS TO TWO-AND-A-HALF YEARS TO RECOVER FROM THAT.
WITHOUT DOING THE MATH, I GUESS MY POINT IS THAT WE'VE SEEN 75% INCREASE IN HOTEL OCCUPANCY OVER THE COURSE OF THE LAST FIVE YEARS.
YEAR OVER YEAR? WELL, FIVE YEARS, YEAR OVER YEAR IS UNFAIR.
AGAIN, IN THE LAST FIVE YEARS, WE'VE SEEN 60, 70, 80% INCREASE IN HOTEL OCCUPANCY REVENUE.
[03:45:02]
>> YES. JUST IN THE LAST FIVE YEARS.
BECAUSE PRIOR TO COVID, IT WAS CLOSE TO WHAT WE HAD AND, ONCE IT STARTED TURNING AROUND AGAIN.
>> THAT ANNUAL HOTEL REVENUE, JOHN?
>> I DON'T HAVE THOSE NUMBERS IN FRONT OF ME.
I'M SO SORRY, BUT IT HAS GONE UP SIGNIFICANTLY, PRIMARILY BECAUSE THE HOTEL INDUSTRY BUILT PRETTY SIGNIFICANTLY BETWEEN ABOUT 2015 AND 2020 OR PRIOR TO COVID, AND WE INCREASED UP TO ABOUT 7,000 ROOM NIGHTS AVAILABLE AT ANY GIVEN POINT OF THE YEAR.
ADDITIONALLY, THE CITY COUNCIL AT ONE POINT PASSED A RESOLUTION THAT ALLOWED FOR SHORT TERM RENTALS TO ALSO COLLECT THOSE HOTEL OR A REQUIREMENT THAT SHORT TERM RENTALS ALSO COLLECT THOSE HOTEL OCCUPANCY TAXES AND TO REMIT THEM TO THE CITY OF LUBBOCK.
WE HAVE SEEN AN INCREASE IN THOSE UNITS AS WELL.
>> WELL, SO WHERE I'M HEADED WITH THIS IS, WE SEE A NUMBER OF MARKETING AND PROMOTION OF $2.2 MILLION, AND I WANT TO JUSTIFY THAT SPIN.
I THINK WE CAN IF WE CAN LOOK AT THE NOTION THAT WE'VE SEEN 60, 70% INCREASE IN OCCUPANCY, SO WE'RE SUPPORTING THOSE PARTICULAR HOTEL INDUSTRY, THE PEOPLE THAT WORK IN THEM.
THEN WE'RE ASSUMING THAT EVERY ONE OF THOSE PEOPLE IN THE HOTELS ARE AT THE SHOPPING CENTERS, AT OUR RESTAURANTS, ARE DOING BUSINESS HERE WITHIN OUR CITY, WHETHER THAT'S A WEEKEND VISITOR.
OF COURSE, WE'VE TALKED OFTEN ABOUT HOW THE TOURIST IN LUBBOCK IS NOT NECESSARILY THE DISNEY WORLD STYLE OF TOURISTS, BUT SOMEONE WHO'S OFTEN COMING IN FROM OUR AREA TO VISIT THE DOCTORS OR VISIT FAMILY OR SOMETHING LIKE THAT.
BUT I DON'T THINK WE WOULD EVER HAVE THE NUMBER EXACTLY, BUT WE SEE SIGNIFICANT IMPROVEMENT IN OUR SALES TAX REVENUES.
YOU MAY HAVE A NUMBER IN THE LAST 10 YEARS.
HOW MANY HOTELS HAVE BEEN BUILT? HOW MANY NEW ROOMS?
>> IN 2010, WE HAD ABOUT 4.6 MILLION VISITORS THAT YEAR, AND THIS LAST YEAR, WE HAD ABOUT 7 MILLION VISITORS.
NOW, REMEMBER, NOT EVERY VISITOR SPENDS THE NIGHT IN HOTEL.
WE DID SEE A HUGE INCREASE IN THE NUMBER OF VISITORS SPENDING THE NIGHT IN HOTELS WHEN THE DEVELOPERS STARTED BUILDING MORE HOTEL ROOMS BECAUSE GENERALLY VISITORS LIKE TO STAY IN A NICER NEWER HOTEL THAN THEY DO IN AN OLDER PROPERTY.
THAT INVESTMENT THAT TOOK PLACE IN THE LATE 2010S REALLY REALLY HELPED US TREMENDOUSLY WITH GETTING THOSE VISITORS TO SPEND OVERNIGHT.
WHEN THEY SPEND THE NIGHT, THEY OFTENTIMES WILL EAT DINNER AND BREAKFAST AT A MINIMUM, AND THEN OBVIOUSLY THEY'RE SHOPPING MORE AND THEY'RE TAKING IN THE ENTERTAINMENT AND THE SUCH.
THAT HELPS OTHER TAX REVENUES THAT DON'T NECESSARILY GO STRAIGHT TO THE HOT TAX.
>> I WONDER IF IT MIGHT BE AN INTERESTING EXERCISE FOR AMY SOMETIME TO SEE WHAT THE PROPERTY VALUES OF HOTEL TYPE FACILITIES HOW THEY'VE CHANGED OVER THE LAST 10 YEARS AS WELL. BUT THANK YOU.
>> HEY, JOHN, THANK YOU FOR BEING HERE.
A COUPLE OF QUESTIONS FOR YOU.
FIRST OFF, ARE PLANNING TO SPEND AND DID POTENTIALLY SPEND THIS LAST YEAR, ABOUT 2.2 MILLION IN MARKETING PROMOTIONS.
TELL ME WHAT DO WE GET FOR 2.2 MILLION? WHAT DOES THAT GO TO?
>> THERE'S A LOT OF THINGS THAT WE MARKET TO, A LOT OF AUDIENCES THAT WE'RE MARKETING TO.
SOME OF THEM ARE ACTUAL SPORTING EVENT PLANNERS THAT ARE PLANNING WHERE TO HOST THEIR SPORTING EVENT.
OFTENTIMES OUR LOCALS THINK ABOUT TEXAS TECH AS HOSTING EVENTS.
WE'RE NOT REALLY GOING AFTER THOSE TYPE OF THINGS BECAUSE THEY'RE GOING TO BE TAKING PLACE AS A RESULT OF WHAT THE BIG 12 DECIDES THAT THEY WANT TO DO.
THIS IS REALLY GOING AFTER THOSE EVENT ORGANIZERS THAT ARE HOSTING YOUTH SPORTS OR AMATEUR SPORTS THAT ARE HOSTING THOSE BASEBALL TOURNAMENTS.
WE'VE OFTEN TALKED ABOUT THE MIDNIGHT MADNESS TOURNAMENT THAT IS IN MARCH THAT TAKES PLACE TO KICK OFF THE BASEBALL SEASON EARLY DURING THE MARCH FREEZE TIME PERIOD.
IT'S BRINGING IN USA ARCHERY THAT'S HERE ACTUALLY THIS UPCOMING WEEK WHERE THEY'VE GOT ARCHERS THAT ARE COMPETING TO TRY TO MAKE THE NEXT OLYMPICS.
THIS IS ONE OF THEIR QUALIFYING TIME PERIODS, AND THEY'RE COMING TO LUBBOCK TEXAS TO DO THAT QUALIFICATION RIGHT NOW OR BOWLERS IN THAT SET.
WE ALSO ARE MARKETING TO A GENERAL TOURIST TO JUST, HEY, MAKE SURE YOU'RE STOPPING IN LUBBOCK AND SPENDING THE NIGHT WHEN YOU'RE COMING THROUGH, WHETHER YOU'RE GOING TO THE MOUNTAINS TO GO SKIING OR TAKE A VACATION OR WHETHER YOU'RE COMING FROM THE MOUNTAINS AND HEADED TO THE BEACH.
THERE'S A LOT OF THAT MARKETING THAT TAKES PLACE.
THEN WE ALSO TRY TO GET ASSOCIATIONS AND DIFFERENT ORGANIZATIONS TO HOST THEIR MEETINGS HERE.
THERE'S A LOT OF DIRECT MARKETING TO THOSE GROUPS AS WELL.
>> DOES VISIT LUBBOCK USE ANY TYPE OF METRICS TO SEE IF OUR PROMOTION AND MARKETING IS EFFECTIVE?
[03:50:04]
>> YES, WE HAVE ACTUALLY SUBSCRIBED TO A COUPLE OF DIFFERENT DATABASES THAT HELP WITH SOME OF THAT INFORMATION ABOUT THE CONVERSION RATES OF WHAT THE MARKETING IS DOING.
THEN WE ALSO LOOK AT SOME OTHER METRICS AS IT RELATES TO, ARE THEY SEEING THE ADS? IS THE RIGHT TYPE OF PEOPLE SEEING THE ADS AND ARE THEY ENGAGING IN IT? ARE THEY FOLLOWING THROUGH WITH THE THINGS THAT WE'RE ASKING THEM TO MOVE FORWARD WITH? WHEN MARKETING DOESN'T HIT WHERE WE WANTED TO, WE SWITCH IT UP AND CHANGE IT UP.
>> THEN MY OTHER QUESTION FOR YOU, LAST YEAR, WE TOOK THE BIG MOVE OUT OF RESERVES, THE 4.1 OR THIS YEAR.
I SHOULD SAY LAST YEAR WE'RE WORKING ON NEXT YEAR, BUT THE 4.1, WHAT I DON'T SEE ON HERE IS, WHAT IS THE TOTAL AMOUNT IN THE RESERVE AFTER, DO WE MAINTAIN A RESERVE, HOW MUCH IS IN THERE CURRENTLY FOR VISIT LUBBOCK?
>> WE HAVE 2.8 MONTHS WORTH OF OPERATING EXPENSES AND RESERVES THAT DOESN'T INCLUDE ANY OF OUR EXPENSES RELATED TO THE MARKETING AND SALES AS WELL AS THE TOURISM CAPITAL IMPROVEMENTS.
IT'S JUST LIKE IF BY CHANCE, A COVID WERE TO HAPPEN AGAIN, AND WE WERE TO HAVE TO SHUT DOWN EVERYTHING, HOW LONG COULD WE LAST JUST WITH OUR NORMAL OPERATIONS AND NOT HAVING TO FUND ANY EVENTS OF THINGS.
>> WHAT'S A DOLLAR AMOUNT ON THAT? ESTIMATE, MAYBE?
>> I DIDN'T PULL THAT LET ME SEE IF I'VE GOT THAT.
IF IT'S ALL RIGHT WITH YOU, LET ME GET THAT INFORMATION TO THE CITY STAFF AND LET THEM GET TO THE COUNCIL.
>> I'VE GOT AN IDEA, JOHN, LET'S SAY VISIT LUBBOCK, TAKE ON A PRAIRIE DOG.
HOW ABOUT THAT? GREAT. ANY OTHER QUESTIONS? MR. MAYOR?
>> WHILE WE HAVE MR. OSBORNE HERE, YOU HAVE A SECOND BUDGET THAT'S FROM A HOT TAX ALLOCATION, AND THAT'S LUBBOCK SPORTS.
WE'VE KIND TALKED A LITTLE BIT ABOUT BOTH, BUT HERE'S THE ACTUAL BUDGET.
THEN YOU ALSO HAVE THE LIDA BUDGET, WHICH IS NON HOT TAX, NON GENERAL REVENUE, BUT THIS ONE IS HOT TAX FUND.
ON THE LUBBOCK SPORTS AUTHORITY, THE MAIN THING THAT IS PROBABLY OF INTEREST TO THE COUNCIL IS THAT THIS IS NOT ENOUGH MONEY TO ACTUALLY HOST THE SPORTING EVENTS THAT WE HOST.
WE BRING A TREMENDOUS AMOUNT OF ROOM NIGHTS TO OUR COMMUNITY AND GROUPS TO OUR COMMUNITY.
WE ACTUALLY FUND THE ADDITIONAL NEEDS FOR LUBBOCK SPORTS OUT OF THE YOU ALL CALL IT THE CONVENTION VISITOR.
>> WE FUNDED OUT OF VISIT LUBBOCK.
>> WE FUNDED OUT OF VISIT LUBBOCK. THAT'S RIGHT.
THAT'S BECAUSE AGAIN, WE THINK OF THEM AS ALL TOGETHER.
THE ONLY TIME THAT WE REALLY SEPARATE THESE OUT IS WHEN WE'RE ACTUALLY TALKING TO COACHES AND EVENT PLANNERS THAT ARE SPECIFIC TO SPORTS.
THAT'S FOR MARKETING PURPOSES TO TALK ABOUT IT.
BUT FOR THE MOST PART, THIS IS NOT ENOUGH MONEY TO ACTUALLY HOST ALL THE GROUPS THAT WE BRING TO TOWN, AND SO WE UTILIZE THE CONVENTION OF VISIT LUBBOCK OR THE VISIT LUBBOCK PORTION OF THE BUDGET TO DO THAT.
>> I THINK DR. WILSON HAD A QUESTION.
>> ON A POSITIVE NOTE, THE CITY MANAGER WAS TALKING ABOUT THE HOTEL INDUSTRY IS DOING VERY WELL.
IF YOU HADN'T SEEN ONE OF AMY ON OUR TEAMS REPORTS LATELY, THE HOTEL INDUSTRY HAS BEEN HITTING OVER 60% OCCUPANCY FOR QUITE SOME TIME NOW.
THAT'S USUALLY A REALLY GOOD INDICATOR TO THE HOTEL DEVELOPERS THAT THIS IS A GOOD PLACE TO INVEST IN.
WE'VE STARTED TO SEE MORE AND MORE HOTELS KICKED THE DIRT JUST A LITTLE BIT TO SEE ABOUT BRINGING SOME ADDITIONAL HOTEL DEVELOPMENTS HERE.
THAT WOULD BE A POSITIVE THING IN TERMS OF CREATING OPPORTUNITIES FOR VISITORS TO HAVE A PLACE TO STAY.
FOR THAT MATTER, OUR RESIDENTS TO HAVE A STAYCATION.
>> I THINK MY QUESTION IS PROBABLY GOING TO BE THE SAME ON THIS ONE, JOHN.
LOOKING AT SHIFTING A RESERVE MONEY.
YOU'RE JUST SAYING THAT HOT IS NOT ENOUGH IN WHAT YOU'RE GETTING IN REVENUE FOR LUBBOCK SPORTS AUTHORITY IS NOT ENOUGH TO DO WITH WHAT YOU GUYS WANT TO DO.
>> BUT YOU'VE ALLOCATED 5.3 MILLION AT A RESERVE FOR THIS COMING YEAR'S BUDGET,
[03:55:05]
POTENTIALLY LOOKING OVER I GUESS FOR A CAPITAL LEVEL PROJECT.HOW MUCH IS IN THE RESERVE FOR LUBBOCK SPORTS AUTHORITY TO BE ABLE TO PULL THAT MONEY OUT?
>> IT'S JUST ONE COMBINED RESERVE FOR VISIT LUBBOCK AND LUBBOCK SPORTS AUTHORITY.
>> IT IS. IT'S 2.8 MONTHS, EXCUSE ME.
>> PULLING OUT 5 MILLION STILL LEAVES YOU AT 2.8 MONTHS?
>> BY PULLING OUT 5 MILLION AND HAVING THE BUDGET THAT WE HAVE THIS YEAR, WE WILL BE AT 2.8 MONTHS BY THE END OF THE YEAR.
>> THANK YOU, JOHN. I APPRECIATE THAT YOU'RE HERE TODAY TO ANSWER QUESTIONS.
MINUS MORE, I HAVE TRIED TO GET HOT DOLLARS AND IT'S NOT SO EASY.
YOU HAVE TO REALLY VET PEOPLE THAT ARE ATTENDING YOUR EVENT?
>> JUST TO GIVE YOU AN IDEA, THIS WEEKEND, WE HAD THE [INAUDIBLE] LET'S GO FISHING EVENT.
WE'RE ASKING ALL THESE QUESTIONS AND ONE OF THE MAIN QUESTIONS IS, ARE YOU STAYING IN A HOTEL, IF YOU'RE FROM OUT OF TOWN, THAT'S EITHER YES OR NO.
A COMBINATION OF MY PARTICIPANTS AND OUR VENDORS AND SPONSORS, WHATNOT, VOLUNTEERS.
WE HAD ALMOST 3,500 PEOPLE, GUESS HOW MANY STAYED IN A HOTEL?
>> BUT NEVERTHELESS, YOU'RE HELPING TO BRING IN SO MANY SPORTS PROGRAM.
IF YOU GO TO THESE BALL FIELDS, IT IS EVIDENT THAT THERE IS TRACTION HAPPENING.
I'M SEEING, YOU HAD THE BOXING, THE NATIONAL BOXING.
MOST OF THE FOLKS FROM THAT ARE FROM OUT OF TOWN.
THERE'S A LOT OF EVENTS THAT WE'RE PROBABLY NOT PAYING ATTENTION BECAUSE, WHEN I'M DOING TOURISM IN MY BACKYARD.
I'M GOING TO THE FIRST FRIDAY ART TRAIL.
BUT NOT EVERYBODY IS SEEING THAT WE'VE GOT ALL THESE SPORTS EVENTS COMING INTO TOWN, AND IT IS BIG.
>> YES, MA'AM. I'M NOT VERY GOOD WITH ALL THE NAMES OF THE DIFFERENT SPORTING EVENTS BECAUSE THERE'S SO MANY DIFFERENT KINDS.
IF SCOTT HARRISON WERE HERE, HE'D BE MUCH BETTER AT IT.
BUT WE RECENTLY HELD A GOLF TOURNAMENT.
IT WAS A NATIONAL GOLF TOURNAMENT IN WHICH TWO LOCAL GOLFERS PLAYED IN IT.
THERE WERE TWO MORE GOLFERS FROM WITHIN 150 MILES.
EVERYBODY ELSE OUT OF THE I THINK THERE WAS A TOTAL OF 150 GOLFERS.
EVERYBODY ELSE WAS FROM OUT OF TOWN.
WE GET A LOT OF PEOPLE THAT COME IN FOR AN EVENT THAT IS BEING HELD HERE BECAUSE THIS IS A GREAT PLACE TO HOLD THE COMPETITION.
WE HAVE GREAT HOSPITALITY AND SERVICES AND PEOPLE LIKE OUR RESTAURANTS.
THEY LIKE THE FUN THINGS THERE ARE TO DO.
WE BENEFIT AS A COMMUNITY AS A RESULT BECAUSE ALL THESE VISITORS COMING IN BRING THEIR BUYING POWER AT THE RESTAURANTS AND THE SHOPPING THAT MAKE IT TO WHERE WE AS LOCALS HAVE A BETTER OPPORTUNITY TO ENJOY A RESTAURANT OR A SHOP.
>> YOU MENTIONED THE EVENTS TRUST FUND?
>> YOU TALKED A LITTLE BIT ABOUT SOME OF THE GROUPS AND HOW IT'S A SPECIAL CATEGORY?
>> THERE'S A COUPLE OF DIFFERENT DEFINITIONS, BUT THE ONE WE PRIMARILY ACCESS IT WITH IS THAT IT HAS TO BE SOME CHAMPIONSHIP TYPE EVENT, SO A SPORTING EVENT THAT'S GOT A CHAMPIONSHIP NATURE TO IT, IN WHICH IT WAS NOT HELD IN TEXAS IN THE PREVIOUS YEAR.
THEN WE'RE ABLE TO GO AFTER SOME FUNDS, AND THE STATE PUTS FUNDS UP IN WHICH THEY ARE ALLOCATING THE IMPACT OF THE VISITORS THAT ARE COMING TO THAT SPECIFIC EVENT, HOW MUCH SALES TAX THEY WOULD TYPICALLY SPEND AS A RESULT OF COMING FOR THAT EVENT, THAT WOULD GO TO THE STATE OF TEXAS AND THE STATE OF TEXAS IS WILLING TO GIVE UP SOME OF THAT IN ORDER FOR US TO BE ABLE TO LAND THAT PROJECT, AND THEN WE ARE ABLE TO USE THAT TO OFFSET SOME OF OUR EXPENSES.
IT'S ENABLED US TO I THINK, JARRETT, DO YOU RECALL, ANYWHERE FROM $500,000 -600,000 A YEAR, HAS BEEN THE MAXIMUM THAT WE'VE GOTTEN REIMBURSED.
IT'S BEEN AS LITTLE AS $50,000.
BUT I THINK IN THIS UPCOMING YEAR, WE'VE GOT IT MORE IN THE 300,000 RANGE.
LAST YEAR, YOU PROVIDED THE $5 MILLION THAT WE'RE USING TO THE SPORTS COMPLEXES.
>> HOW MUCH DID YOU SAY WE'RE GETTING THIS YEAR?
>> LET ME CLARIFY. WHAT WE'VE DONE IS WE'VE ALLOCATED, WITHIN OUR BUDGET, THE $5 MILLION.
BUT UNTIL BOTH OUR BOARD AND YOUR COUNCIL VOTES ON WHAT THE PROJECT ACTUALLY IS, WE'RE NOT NECESSARILY MOVING FORWARD.
WHAT WE'VE COMMITTED TO CITY STAFF IS THAT WE WOULD CONTINUE TO ALLOCATE
[04:00:04]
THOSE SAME DOLLARS IN FUTURE BUDGETS UNTIL WE CAN FIGURE OUT HOW BEST TO UTILIZE THOSE FUNDS AND TO MAXIMIZE THE IMPACT NOT ONLY FOR OUR VISITORS, BUT ALSO FOR OUR COMMUNITY.BECAUSE WE DID NOT GET A BUDGET INCREASE THIS YEAR, WE DID NOT ALLOCATE MORE DOLLARS, BUT WE ALSO DIDN'T ALLOCATE LESS DOLLARS.
JUST TO CLARIFY, IT'S NOT FIVE LAST YEAR PLUS FIVE THIS YEAR, IT'S THE SAME FIVE FROM LAST YEAR WE'RE CONTINUING TO USE THIS YEAR.
>> JOHN, FORGIVE ME. ON THAT, YOUR CAPITAL OUTLAY, THE FIVE MILLION, WE'RE JUST DECIDING WHAT TO DO WITH THAT RIGHT NOW?
>> YES, SIR. WE'VE BEEN WORKING VERY CLOSELY WITH COLBY, AND I BELIEVE IT'S PARK HILL.
COLBY IN THE ROOM? THERE HE IS PARK HILL, IS THAT RIGHT? PARK HILL IS DOING A STUDY FOR US RIGHT NOW, I SHOULD SAY, FOR THE CITY, ON HOW BEST TO PLAN WHAT THAT PARK NEEDS TO LOOK LIKE AND HOW BEST TO MAXIMIZE THE GREEN SPACE AS WELL AS THE EXPERIENCE FOR NOT JUST THE VISITOR, BUT OUR COMMUNITY PEOPLE.
THEN FROM THAT, WE'LL HELP DETERMINE WHAT BUDGET NUMBER IS NECESSARY TO MAKE THOSE GROUNDS LOOK THE WAY THAT THEY'VE ENVISIONED FROM A MASTER PLAN STANDPOINT.
THEN WE'LL SEE HOW FAR THIS MONEY CAN GO, AND ARE THERE ANY OTHER DOLLARS THAT CAN BE GONE AFTER TO HELP BECAUSE WE BELIEVE THAT IT'S GOING TO TAKE MORE DOLLARS THAN JUST WHAT WE HAVE?
>> JOHN, JUST FOR CLARIFICATION IN CLOTHING, THE FIVE MILLION, YOU'RE TALKING ABOUT DESIGN ON TOM MARTIN?
>> OKAY. OTHER QUESTION REALLY QUICKLY BACK ON VISIT LUVICK, JOHN, THERE'S A INCENTIVE LINE.
IT'S NOT VERY BIG, BUT WHAT ARE WE INCENTIVIZING AND WHAT DO WE GIVE OUT AS INCENTIVES?
>> THAT PARTICULAR LINE ITEM IS FOR GROUPS TO ACTUALLY COME, NON-SPORTING RELATED GROUPS IS WHAT THAT LINE ITEM IS.
IF YOU'RE A MEMBER OF AN ASSOCIATION AND WE'RE HOSTING THAT MEETING HERE, SOMETIMES WE HAVE TO INCENTIVIZE THEM BY HELPING TO PAY FOR THE MEETING SPACE OVER AT THE CIVIC CENTER.
THE CIVIC CENTER DOESN'T GRANT THAT FREE OF CHARGE TO OUR GROUPS.
THEY PAY THE NORMAL TYPICAL RATE THAT THE CIVIC CENTER WOULD CHARGE.
BUT A LOT OF OUR GROUPS REQUIRE THEIR SPACE TO BE FOR FREE, SO OUR INCENTIVES GO TO OFFSET THAT COST SO THAT THE GROUP IS WILLING TO COME, AND THE CITY IS MADE WHOLE.
THAT'S ONE EXAMPLE. IT COULD ALSO BE THAT WE'RE HELPING WITH, IN THE OLDEN DAYS, IT WAS BAGS AND ITEMS IN THOSE BAGS AS YOU WALK AWAY.
THAT'S LESS OF A NECESSITY THESE DAYS.
IT'S MUCH MORE RELATED TO THE OFFSETTING OF COSTS FOR HOSTING THAT EVENT IN YOUR COMMUNITY.
>> OUR SPORTING EVENT HAS ALSO SIMILAR TYPE ITEM, BUT IT IS MORE IN THE SPORTS SERVICING. SEE IT THERE.
>>. I JUST HAVE ONE MORE QUESTION BECAUSE WE HAVE LIKE THE CONVENTION INVEST CIVIC CENTER?
>> WE HAVE SOME OF THESE FACILITIES THAT ALSO LIE IN NEIGHBORHOODS OR AGING AREAS.
I NOTICED THAT ON HERE IT SAID FUNDING FOR THE ESTABLISHMENT, IMPROVEMENT OR MAINTENANCE OF THE CONVENTION CENTER.
WOULD THAT QUALIFY THE CIVIC CENTER?
>> I BELIEVE ON THAT PARTICULAR LINE ITEM, AND MR. WADE MIGHT BE ABLE TO CORRECT ME ON THIS, I BELIEVE THAT MUST BE RELATED TO A CITY OWNED PROPERTY.
I DON'T THINK A PRIVATELY OWNED FACILITY MEETING SPACE WOULD BE ELIGIBLE.
THAT MEETING SPACE ALSO HAS TO BE OPEN AND REGULARLY USED FOR VISITORS TO COME IN, AND THERE MIGHT BE, AS HE SAID, MORE DETAILS IN THERE.
>> ISN'T THE CIVIC CENTER CITY'S PROPERTY?
>> YES. BUT IF YOU REMEMBER, THE CIVIC CENTER IS GETTING SOME OF THE HOT MONEY.
FOR, I THINK, IT'S ABOUT IN THE NEIGHBORHOOD OF 24% OR SOMETHING ALONG THOSE LINES.
>> MAYBE I DON'T UNDERSTAND. COULD YOU REPEAT YOUR QUESTION, MAYOR PRO TEM?
>> I WANT MORE MONEY IN DISTRICT ONE, SPECIFICALLY IN DOWNTOWN.
HOW CAN I MAKE THAT HAPPEN? IS THERE ANYTHING THAT WE'RE OVERLOOKING THAT WE COULD POSSIBLY PURSUE?
>> WE'VE BEEN PRETTY AGGRESSIVE AT TRYING TO GET MORE DOLLARS, ESPECIALLY INTO THE DOWNTOWN AREA, AND WE LOOKED AT A VARIETY OF DIFFERENT POTS COMING FROM THE STATE, ESPECIALLY.
THE STATE IS ACTUALLY MAKING IT EVEN MORE DIFFICULT FOR US TO GO AFTER THE EVENTS TRUST FUND.
WE'RE HOPEFUL THAT OUR REPRESENTATIVES WILL BE ABLE TO MAKE SOME ADJUSTMENTS IN THE UPCOMING LEGISLATIVE YEAR BECAUSE
[04:05:01]
THAT'S ONE REASON WHY WE'VE DECREASED THE NUMBER OF EVENTS THAT WE'RE ABLE TO GET BECAUSE THEY'RE MAKING IT SO MUCH HARDER AND IT WAS HARD TO BEGIN WITH.SOME OF OUR REIMBURSEMENTS WOULDN'T COME FOR 18 MONTHS.
>> THANK YOU, MAYOR. COUNSEL, MIGHT OFFER A SUGGESTION AS WE START RUNNING A LITTLE LONG THIS EVENING.
IT IS NOT A HOT TAX BUDGET, BUT YOU HAVE ONE MORE BUDGET FOR MR. OSBORNE.
LUBBOCK ECONOMIC DEVELOPMENT ALLIANCE.
MAYOR, IF YOU WANTED TO BREAK AT THAT POINT, YOU REALLY ARE ONLY GOING TO HAVE ABOUT FIVE SLIDES TO PICK UP TOMORROW.
COUNSEL, REMEMBER TOMORROW WHEN YOU CONVENE A TWO IS WHEN YOU WILL RECEIVE THE RECOMMENDATIONS FROM YOUR CITIZENS ADVISORY COMMITTEE ON THE STREET BOND.
THEN AGAIN, JUST A VERY SMALL NUMBER OF SLIDES. WE HAVE SOME DETAILS.
WE'RE GOING TO SHOW YOU LIKE WHERE THE 14.5 AND STREET MAINTENANCE WILL GO IN THAT TYPE OF STUFF.
BUT MIGHT BE A GOOD SPOT, MAYOR, IF THAT MET YOUR APPROVAL.
>> AS MY APPROVAL. WE'LL BREAK HERE.
>> WE'RE GOING TO LET HIM COVER THIS BUDGET.
I'LL TEE IT UP AND LET JOHN TALK ABOUT THE LEDA BUDGET.
COUNSEL, REMEMBER THE DIFFERENCE IN THIS AND THE PRIOR TWO BUDGETS THAT MR. OSBORNE TALKED ABOUT.
LUBBOCK ECONOMIC DEVELOPMENT ALLIANCE.
THIS IS THE SALES TAX FUNDED OPERATION THAT JOHN AND HIS TEAM DO.
ONE EIGHTH OF A CENT FROM THE $0.02 LOCAL SALES TAX GOES TO LEDA.
OF COURSE, THEIR BOARD IS ENTIRELY APPOINTED BY THE COUNCIL.
THEY BRING BACK TO YOU A BUDGET EACH YEAR.
YOU HAVE THAT IN FRONT OF YOU TODAY.
FOR THE NEW YEAR, THAT 1/8 OF A PENNY IS BUDGETED TO BRING TO LEDA 9.6 MILLION DOLLAR.
WITH THAT, JOHN, I WILL TURN IT OVER AND IF YOU WOULD PLEASE TAKE THEM THROUGH YOUR BUDGET.
>> YES, SIR, THANK YOU VERY MUCH.
OBVIOUSLY, WE WORKED VERY CLOSELY WITH CITY STAFF, AND THEY PROVIDE US WHAT OUR SALES TAX NUMBER PROJECTION IS.
AS THAT ADJUST UP OR DOWN, THEN THAT'S WHAT WE DO AS WELL AS ADJUST S UP OR DOWN.
WE DO GET A GRANT FROM MARKET LUBBOCK FOR $1,000,000.
AT ONE POINT IN TIME, THIS WAS GENERALLY AROUND THE $3,000,000 RANGE.
WE DECREASED IT DOWN TO NONE AT ONE POINT, AND THEN, AS A RESULT OF WINNING LEPRINO, HAVE ASKED THAT IT GO BACK UP TO $1,000,000, AND THAT'S WHAT WE'VE GOT FOR THIS UPCOMING YEAR.
WE DO HAVE TWO UTILIZATION OF OUR NET ASSETS.
ONE IS NET ASSETS THAT'S CASH, AND ONE IS NET ASSETS THAT'S LAND.
AS WE BUY LAND AND THEN WE WORK TO GET A COMPANY ON IT, WE LOSE THE VALUE OF THAT LAND ON OUR BOOKS, AND THAT'S WHERE THAT LINE ITEM IS IN OUR BUDGET.
YOU'LL SEE THAT WE'VE GOT SOME OF THOSE ON BOTH ON THE BUDGET FOR THIS YEAR.
AGAIN, OUR COMPENSATION IS A 3% RAISE, EVEN THOUGH IT SHOWS THAT IT WOULD BE MORE, IT'S BECAUSE WE'VE GOT THE DUPLICATION OF ONE OF THE DUTIES OF ONE OF OUR STAFF MEMBERS, AND THAT'S ONE REASON WHY YOU SEE THAT INCREASE THERE.
WE ARE LEDA AND VISIT LUBBOCK SHARE THE SAME SPACE AND RENT, AND SO WE ALLOCATE THAT RENT BASED ON THE NUMBER OF OFFICES AND SQUARE FOOTAGE FOR THOSE, AND YET WE HAVE NOT ACTUALLY NEGOTIATED THAT RENT AT THE MOMENT, SO WE HAVE PUT SOME MONEY IN THERE FOR THAT.
FOR THE MOST PART, OUR ADMINISTRATIVE COSTS ARE REMAINING RELATIVELY FLAT OTHER THAN THAT ONE INCREASE IN THE RENT THERE.
SAME WITH OUR OFFICE EXPENSES.
ON OUR MARKETING AND SALES, WE ARE ONLY ALLOWED TO SPEND 10% OF OUR MARKETING DOLLARS TO PROMOTE OUR COMMUNITY.
THAT'S ONE DIFFERENCE BETWEEN VISIT LUBBOCK AND LEDA.
VISIT LUBBOCK IS REQUIRED OR IS THEY'RE ALLOWED AND ENCOURAGED TO SPEND AS MUCH MONEY AS POSSIBLE ON MARKETING THE COMMUNITY.
IN LEDA, WE'RE ONLY ALLOWED TO SPEND 10%.
THAT'S ONE REASON WHY THE NUMBER SITS WHERE IT DOES FROM OUR BUSINESS INCENTIVES AND SPECIAL PROJECTS THAT WE'VE GOT.
I'VE GOT A NUMBER OF DIFFERENT THINGS THAT WE HAVE BEEN WORKING ON IN OUR SPECIAL PROJECTS, WE'VE GOT SOME OF OUR WORKFORCE RELATED PROJECTS.
OUR SOUTH PLAINS COLLEGE EFFORTS TO BRING THEM DOWNTOWN ARE STILL BEING FUNDED OUT OF LEDA OUT OF THIS LINE ITEM.
THEN A COUPLE OF OTHER MINOR EXPENSES, BUT THE BULK OF THAT EXPENSE AND SPECIAL PROJECTS IS RELATED TO BRINGING SOUTH PLAINS COLLEGE TO THE DOWNTOWN FACILITY FOR THEIR ACADEMIC CAMPUS.
THEN MOVING ON DOWN TO OUR CAPITAL EXPENDITURES,
[04:10:03]
WE'VE GOT SOME LAND THAT WE BELIEVE WE WILL GO AFTER IN ORDER TO HAVE IT AVAILABLE FOR SOME BUSINESS PROSPECTS THAT WE'RE GOING AFTER.IF WE DON'T ACTUALLY PURCHASE THAT, THEN WE WON'T EXPEND IT IN THAT LINE ITEM, AND THEN WE DO KNOW THAT WE HAVE SOME SIGNIFICANT INFRASTRUCTURE COSTS, MOST SPECIFICALLY, COMPLETING SOME OF OUR LEPRINO EFFORTS TO BUILD THE INFRASTRUCTURE OUT FOR LEPRINO.
WE'LL BE FINALIZING THE ROAD CONSTRUCTION THERE FOR THEM HERE IN THIS UPCOMING MONTHS.
THEN WE'VE ALSO GOT A PRETTY SIGNIFICANT PROJECT TO BRING WATER FROM MUNICIPAL DRIVE AND GUAVA OVER TO PLANT SYSTEMS, AND THAT WILL THEN HELP WATER PRESSURES ON THE EAST SIDE AND BRING A NEW PLANE OF WATER OVER THERE ACCORDING TO MR. FRANKLIN. QUESTIONS ON ANY OF THAT.
>> JOHN, I THINK YOU KNOW WHERE I'M GOING WITH THIS ONE AS WELL.
I'M ASSUMING LEDA'S RESERVE IS NOT THE SAME AS VISIT LUBBOCK AND LUBBOCK SPORTS AUTHORITY.
>> NO, IT'S NOT. WE DID GO OUT AND SELL BONDS.
I'M HERE RECENTLY IN 2022, I BELIEVE IS WHEN IT WAS AND THAT WAS TO ENABLE US TO HAVE SOME FUNDS TO BE ABLE TO DO SOME OF THE PROJECTS THAT WE WERE WORKING ON.
WE'VE NOT EXPENDED ALL THOSE FUNDS YET, AND SO SOME OF THOSE ARE STILL IN OUR RESERVES.
IT'S DEFINITELY SIGNIFICANTLY LARGER THAN A THREE MONTHS RESERVES.
>> WHAT DO YOU KNOW YOUR NUMBER FOR YOUR CURRENT RESERVE ON THAT?
>> I DIDN'T WRITE THAT ONE DOWN, I APOLOGIZE.
>> FOR NEXT YEAR, I WOULD DEFINITELY INCLUDE RESERVE NUMBERS ON HERE.
I JUST MAKES IT EASIER FOR US TO SEE WHERE THINGS ARE GOING.
>> INCENTIVE PAYMENTS FOR LEDA.
TELL ME WHAT WE HOW WE INCENTIVIZE OTHER THAN THAT ARE NOT IN OUR CAPITAL OUTLAY PROJECTS FOR SOME OF THESE BIGGER COMPANIES.
HOW DO WE INCENTIVIZE OUR LEDA?
>> INCENTIVES ARE DEVELOPED BASED ON WHAT THE PROBLEMS ARE RELATED TO A PROJECT AND WHAT'S THE RETURN ON INVESTMENT RELATED TO THAT SPECIFIC PROJECT.
AN EASY EXAMPLE TO GIVE IS WITH LEPRINO, THEY HAD EXCESS WATER, AND WE WANTED IT AS A COMMUNITY.
ONE OF OUR INCENTIVES TO THEM WAS TO HELP BUILD THE PIPELINE BETWEEN THEIR WASTEWATER TREATMENT PLANT AND LAKE 6.
WE FELT THAT WAS A REASONABLE EXPENSE BASED ON THE PAYBACK OF THAT PARTICULAR PROJECT TO BE ABLE TO PROVIDE THAT.
SOMETIMES IT'S JOB CREATION INCENTIVES, SOMETIMES IT'S CAPITAL INVESTMENT INCENTIVES, SOMETIMES IT'S THE PURCHASE OF THE LAND.
WE'VE MOVED UTILITY POLLS BEFORE.
WE'VE EXTENDED INFRASTRUCTURE SUCH AS SEWER LINES AND WATER LINES, AND ROADWAYS AS WELL.
IT'S ALL REALLY BASED ON WHAT THOSE PROJECTS ARE AND WHAT THEIR PAYBACK IS.
EASY EXAMPLE TO GIVE IS A CALL CENTER CAN LOSE A CONTRACT REAL QUICKLY, AND SO YOU DON'T WANT A TEN YEAR PAYBACK ON A CALL CENTER.
YOU WANT AT THE MAXIMUM OF TWO OR THREE WEEK OR MONTH LONG PAYBACK.
WE TRY TO MAKE SURE THAT THOSE INCENTIVES THAT WE'RE DOING ARE APPROPRIATE BASED ON THE TYPE OF COMPANY THAT WE'RE GETTING AND WHAT THAT TYPE OF THAT PROJECT IS.
WE HAVE COMMITMENTS GOING OUT THROUGH FISCAL YEAR 30, 33 THAT TOTAL OVER $30 MILLION AND PAYMENTS TO COMPANIES THAT SHOULD THEY ACHIEVE EVERYTHING THAT THEY SAY THEY'RE SUPPOSED TO ACHIEVE.
WE WOULD BE MAKING PAYMENTS ON AN ANNUAL BASIS THAT AT THE END OF THAT NINE YEAR PERIOD, WOULD TOTAL MORE THAN $33 MILLION.
>> ARE THOSE GUESSTIMATED INCENTIVE PAYMENTS ON IF COMPANIES COME OR THE FOR SURE INCREASED.
>> THOSE ARE ONES THAT WE DID WIN AND WE HAVE A CONTRACT WITH THEM THAT SAYS, YOU DO THIS, AND WE WILL DO THAT.
WE'RE ASSUMING THESE COMMITMENTS ARE THAT THEY WILL DO EVERYTHING THAT THEY SAID THEY WILL DO, AND THEREFORE, THOSE COMMITMENTS ARE IN PLACE.
>> IS THE 4.1 MILLION IN ADDITION TO THINGS THAT YOU ALREADY KNOW YOU'RE COMMITTED TO, OR IS THAT JUST PART OF WHAT WE KNOW WE'RE COMMITTED TO FOR INCENTIVES?
>> IN LEDA, MOST OF OUR PROJECTS WHERE THE INCENTIVE STARTS TO TAKE PLACE IS USUALLY THE YEAR AFTER WE'VE KIND OF WON IT BECAUSE YOU'VE GOT TO HAVE A TIME PERIOD WHERE YOU CAN MEASURE THEM AND MAKE SURE THAT THEY ACTUALLY DID WHAT THEY SAID THEY WERE GOING TO DO.
MOST OF OUR COMMITMENTS ARE RELATED TO THE CURRENT EXCUSE ME FOR THE UPCOMING YEAR ARE RELATED TO DEALS WE'VE ALREADY WON, NOT THAT WE MIGHT WIN A DEAL HERE IN THE NEXT MONTH OR TWO, AND THEREFORE HAVE TO DO IT.
WE GREAT ONCE IN A WHILE, THERE'S ONE THAT YOU SAY, OKAY, BASED ON WE KNOW THESE PROJECTS ARE TAKING PLACE AND THEY'RE ABOUT TO HAPPEN.
IF SO, THERE MIGHT BE AN EXPENSE COME, JULY, AUGUST, SEPTEMBER, THAT'S AT THE END OF OUR FISCAL YEAR THAT WE WILL START TO INCUR.
AND SO WE'RE ABLE TO KIND OF ACCOUNT FOR THAT.
BUT IN THIS PARTICULAR CASE, IT'S FOR THE COMMITMENTS THAT WE'VE DONE UP TO NOW.
[04:15:01]
>> JOHN, YOU HAVE A METHODOLOGY BY WHICH YOU DETERMINE PAYBACK?
>> THERE'S A VARIETY OF DIFFERENT METHODS THAT MANY OF MY PEERS WILL UTILIZE A METHOD THAT DR. RAY PERRYMAN, WHO'S A RENOWNED ECONOMIST IN TEXAS, A MODEL HE'S PUT TOGETHER.
WE FOUND ONE OF THE SIMPLEST METHODS TO MEASURE IMPACT THAT'S USER-FRIENDLY FOR US, BUT ALSO DOES A GOOD JOB OF PROVIDING WHAT THOSE IMPACTS ARE, IS THROUGH A COMPANY CALLED IMPACT DATA, THEY'RE BASED IN AUSTIN.
WE HAVE ONLINE MODEL THAT WE LICENSE FROM THEM, WHERE WE CAN INPUT HERE'S HOW MANY JOBS THE COMPANY IS PROMISING, HERE'S WHAT THEIR WAGES ARE THAT THEY'RE PROMISING, HERE'S THE CAPITAL INVESTMENT THEY'RE PROMISING.
BUT WHAT WE CAN'T CHANGE IS WHAT THE MULTIPLIER IS WITH IT, IT'S BASED ON WHATEVER THE INDUSTRY IS THAT WE ARE LOCATING.
WHEN IT WAS LEPRINO, IT WAS A CHEESE MANUFACTURER, IS HOW WE CLASSIFIED IT.
IF IT'S AMAZON, THEN IT WOULD BE A DISTRIBUTION-RELATED FACILITY.
IT DOESN'T ACCOUNT FOR THE FACT THAT IT'S AMAZON VERSUS, SAY, THE JOHN OSBORNE DISTRIBUTION COMPANY.
IT LOOKS AT THE DISTRIBUTION COMPANY THE EXACT SAME NO MATTER WHO THE COMPANY IS.
>> SO YOU'VE GOT A VERY SPECIFIC PROGRAM THAT YOU INPUT DATA INTO THAT GIVES YOU A PAYBACK.
DO YOU ALSO HAVE A MINIMUM OR A MAXIMUM PAYBACK PERIOD?
>> NO, SIR, AND PART OF THAT'S BECAUSE IT'S VERY DEPENDENT ON THE COMPANIES.
THE EXAMPLE THAT I LIKE TO GIVE IS THAT IF YOU HAD THE OPPORTUNITY TO BRING A COMPLETELY NEW INDUSTRY TO OUR COMMUNITY THAT WOULD BE GAME-CHANGING FOR OUR COMMUNITY FROM A LONG-TERM OUTLOOK AND PERSPECTIVE, IT MIGHT BE THAT OUR COMMUNITY WOULD SAY, HEY, WE WANT TO DO SOMETHING LONGER THAN WHAT WOULD BE TYPICAL FOR AN INDUSTRY THAT WOULD BE DIFFERENT, THAT IS SOMETHING THAT WE'VE GOTTEN A LOT OF.
WHAT WE TRY TO DO AS STAFF IS COMMUNICATE WITH OUR BOARD, KNOWING THAT THEY REALLY REPRESENT THE COMMUNITY, AND THEN VISIT WITH OUR COUNCIL MEMBERS TO MAKE SURE THAT EVERYBODY IS ON BOARD WITH WHAT THIS PAYBACK LOOKS LIKE AS A RESULT OF THE TYPES OF PROJECTS THAT WE'RE WINNING.
THE NICE PART ABOUT THIS MODEL IS THAT YOU CAN INPUT, HERE'S WHAT THE COMPANY'S DOING, BUT YOU CAN ALSO INPUT, HERE'S WHAT INCENTIVES ARE GOING TO BE OFFERED OR HAVE BEEN OFFERED OR COULD BE OFFERED AS A RESULT OF WHAT THE NEEDS ARE, AND THAT THEN COMPUTES EVERYTHING IN A NICE WAY TO WHERE YOU CAN GET WHAT THAT PAYBACK IS, WHAT IS THE RETURN ON INVESTMENT.
>> YOUR TYPICAL TIME FRAME, IF YOU WERE TO PROVIDE US INCENTIVE, IT'S TYPICALLY PAID BACK IN ONE YEAR, FIVE YEARS.
>> MOST PROJECTS DON'T GET ANY INCENTIVES, AND SO AS A RESULT, THERE IS NO PAYBACK PERIOD BECAUSE WE DIDN'T INVEST ANYTHING INTO IT.
THE LEPRINOS ARE THE EXCEPTION, WHERE YOU'RE SITTING AT A 10-YEAR PAYBACK.
MONSANTO, I BELIEVE, WAS A SIX-YEAR PAYBACK, SEEMS LIKE BACK WHEN WE BROUGHT THEIR C PROCESSING FACILITY TO OUR COMMUNITY.
WE DID A DEAL WITH BAYER CROP SCIENCE ON SOME SEED DISTRIBUTION, AND IT WAS A TWO-AND-A-HALF YEAR PAYBACK.
IT VARIES. WE TAKE GREAT PRIDE AND SUCCESS OF WINNING A DEAL WHERE WE DIDN'T GO TO WHAT WE DETERMINED WOULD BE OUR MAXIMUM THAT THE COMMUNITY WOULD WANT US TO GO TO.
>> BUT FOR LEPRINO, WE WERE APPROXIMATELY 10 YEARS.
>> THAT'S A WHOLE NEW INDUSTRY WITH ONE OF THE LARGEST PRIVATELY-HELD FIRMS IN THE UNITED STATES BRINGING ABOUT OPPORTUNITIES FOR MANY OF THE SURROUNDING COMMUNITIES TO BE ABLE TO THRIVE WITH SOME OF THE INDUSTRY THAT'S THERE, AND SO IT MADE GOOD SENSE FOR THAT, PLUS THE FACT THAT WE WERE GOING TO THEN CREATE AN OPPORTUNITY FOR LAKE SEVEN TO BE FAST-TRACKED, AS WELL AS PROVIDES ONE OF THE LEAST EXPENSIVE WATER SOURCES THAT WE OWNED AS A RESULT OF HAVING LEPRINO HERE.
THERE WERE SO MANY FACTORS THAT SAID, ABSOLUTELY, IN FACT, DON'T TELL LEPRINO THIS, BUT WE PROBABLY WOULD HAVE GONE EVEN GREATER.
>> I GUESS THE POINT I'M LEADING YOU TO OR THE POINT THAT I WANT TO MAKE ABOUT THIS, AND YOU MENTIONED IT EARLIER, A GOOD BIT OF WHAT YOU'VE INCENTIVIZED IS INFRASTRUCTURE.
I KNOW YOU'VE INCENTIVIZED AND PAID FOR SOME ROADS, WE'VE HAD SOME HELP FROM THE CITY, AS WELL AS THE COUNTY.
BUT A LOT OF WHAT YOU'RE DOING IS INFRASTRUCTURE, IT'S NOT NECESSARILY CASH PAYMENTS TO A PARTICULAR COMPANY WHO'S COMING IN, AND SO WE'RE IMPROVING THE INFRASTRUCTURE IN OUR COMMUNITY AS WE DO THIS, AND TO OBTAIN A ONE BILLION DOLLAR FACILITY AND 600 JOBS, EVERY DOLLAR THAT YOU'VE SPENT WILL BE PAID BACK TO US WITHIN 10 YEARS.
[04:20:01]
>> YES, SIR. EVEN WITH ALL THE OTHER INCENTIVES THAT ARE THERE.
WITH EVERY INCENTIVE THAT'S BEEN PROVIDED, WITH THEM BEING IN OPERATION FOR 10 YEARS, AND AS A RESULT OF THE CONSTRUCTION AS WELL, THEN THAT PAYS BACK IN 10 YEARS.
THE REASON WHY WE GO AFTER AND TRY TO DO INFRASTRUCTURE IS BECAUSE WE KNOW THAT THE CITY OF LUBBOCK DOESN'T NECESSARILY HAVE ALL THE MEANS TO BE ABLE TO FUND THAT INFRASTRUCTURE TO BE DONE RIGHT AWAY FOR A COMPANY TO GET OPERATIONAL.
>> WHAT WE DO IS WE TRY TO DO AS MUCH AS POSSIBLE, ASSISTANCE IN EXTENDING THAT INFRASTRUCTURE TO COMPANIES, KNOWING THAT THAT OPENS UP OPPORTUNITIES WITH THE LAND SITES OR BUILDINGS THAT ARE ADJACENT TO IT.
AS WE BUILD THAT, WE THEN DEDICATE THAT TO THE CITY OF LUBBOCK FOR THEIR JUST GENERAL MAINTENANCE OF THINGS.
BUT THE PART THAT THE COMPANIES LIKE IS THE FACT THAT THEY NEED THAT INFRASTRUCTURE IN PLACE TO BE ABLE TO ACCESS THEIR BUILDING, OR TO HAVE THE WATER, THE SEWER LINE, OR THE ELECTRIC LINE, WHATEVER IT MIGHT BE, THE GAS LINE.
THEY NEED THAT INFRASTRUCTURE DONE, AND IF WE DON'T DO THAT, WE CAN'T WIN THE PROJECT, IT'S PRETTY SIMPLE.
>> THANK YOU. APPRECIATE WHAT YOU DO.
>> YOU WERE USING THE TERM PAYBACK, AT WHAT FORM DOES THAT PAYBACK COME?
>> VERY GOOD POINT. YES, THANK YOU, MAYOR.
THAT'S PAID BACK FROM THE OPERATIONS OF THE COMPANY.
IN A CASE OF A COMPANY THAT WERE TO GET AN INCENTIVE AND THEY LOCATE HERE, THEY ARE THEN PUTTING SOMETHING ONTO THE TAX ROLLS.
EVEN IF THEY'RE GETTING A TAX ABATEMENT, THERE'S OFTENTIMES FEES THAT ARE ASSOCIATED WITH THEIR PROJECT, BUILDING FEES, THE PERMITS, AND THINGS LIKE THAT THAT ARE GOING TO THE CITY OF LUBBOCK, TO LUBBOCK COUNTY.
THEN ADDITIONALLY, ANY OF THE THINGS THAT THEY ARE DOING THAT THEN IMPACT THAT DIRECTLY TO THE CITY.
BUT THEN THERE'S ALSO THE PAYMENT THAT GOES TO THE EMPLOYEES, AND THOSE EMPLOYEES THEN HAVE THE ABILITY TO HAVE HOUSES, TO BUY GOODS AND SERVICES AND RETAIL GOODS AND THINGS, AND SO THE SPENDING OF THAT TAKES PLACE, AND THAT'S REALLY MUCH MORE OF THE INDIRECT SIDE OF THINGS.
AS YOU GET INTO THAT, THE IMPACT TO THE COMMUNITY IS LESS, BUT IT'S STILL MEASURABLE, AND IT'S STILL SOMETHING THAT THEY CAN FOLLOW.
IN THE CASE OF LEPRINO, THEY'RE ACTUALLY PURCHASING WATER FROM THE CITY OF LUBBOCK, AND SO AS A RESULT, IT BECOMES A REVENUE SOURCE TO THEM THAT THEN CREATES IMPACT TO THE COMMUNITY AND TO THE CITIZENS.
>> SO THIS PROGRAM YOU WERE DESCRIBING HELPS YOU DETERMINE HOW THAT PAYBACK OCCURS?
>> HOW QUICKLY THAT PAYBACK TAKES PLACE AS A RESULT OF WHAT WE'VE OFFERED OR PROMISED.
>> NO, SIR. IT IS ABSOLUTELY NOT.
>> THERE'S ACTUALLY A PROGRAM THAT TRIES TO HELP YOU FIGURE THAT OUT.
>> IN FACT, WE HAVE IN THERE EVEN, LOOKS AT IT OVER A 10-YEAR PERIOD, AND SO IF IN YEAR 3, YOU THEN HAVE TO DO X, Y, Z AS A COMMUNITY, THEN THAT INCENTIVE GOES INTO YEAR 3 NOT INTO YEAR 1, AND SO IT LOOKS INTO ALL THOSE ASPECTS.
>> ANY OTHER QUESTIONS FOR MR. OSBORNE? DR. WILSON.
>> I'M JUST GOING TO ASK, ARE WE DOING MARKET LUBBOCK AS WELL?
>> I'M AVAILABLE IF YOU WOULD LIKE, BUT IF YOU ALL NEED DINNER, I DON'T MIND.
>> BECAUSE WE HAVEN'T DONE MARKET OR CIVIC.
ARE WE GOING TO DO THIS NOW OR ARE WE DOING IT TOMORROW?
>> IS MS. KEY STILL HERE? LET'S GRAB MARKET LUBBOCK AND THEN CIVIC LUBBOCK.
>> IDEA ON HOW MUCH MORE TIME WE MIGHT NEED FOR THAT.
I DON'T WANT TO WEAR MY COUNCIL PEOPLE OUT UP HERE.
>> MAYBE IF YOU WANT TO FINISH MARKET LUBBOCK, WE COULD SEE IF MS. KEY COULD COME BACK TOMORROW.
>> LET'S DO MARKET LUBBOCK, AND THEN WE'LL END WITH THAT.
>> THANK YOU, MAYOR. I'LL GO AHEAD AND TEE THIS ONE UP AND WE'LL TURN IT OVER TO MR. OSBORNE.
AGAIN, MARKET LUBBOCK IS THE ENTITY FROM WHICH YOU MAKE THE PROPERTY TAX TRANSFER OVER TO FUND, AND THEN, OF COURSE, VISIT LUBBOCK, LUBBOCK SPORTS ARE COMPONENTS OF MARKET LUBBOCK.
PRIOR YEAR, THE TAX TRANSFER WAS $3.9 MILLION.
THE PROPOSED ALLOCATION FOR NEXT YEAR IS 3.5.
CALLED MR. OSBORNE WHEN WE WERE WORKING ON THE BUDGET ON TRYING TO BALANCE, HE AGREED TO THAT REDUCTION, SO IT'S ROUGHLY A $500,000.
WITH THAT, JOHN, TAKE YOUR BUDGET AWAY, PLEASE.
>> THANK YOU VERY MUCH. MARKET LUBBOCK WAS ACTUALLY ESTABLISHED BEFORE LEDA, IT WAS ESTABLISHED IN 1995, AND IT WAS MEANT TO BE THE ECONOMIC DEVELOPMENT ORGANIZATION PRIOR TO LEDA.
THEN LEDA WAS ESTABLISHED MOSTLY BECAUSE, IN MARKET LUBBOCK,
[04:25:01]
YOU CANNOT BOND THOSE FUNDS BECAUSE EVERY YEAR YOU'VE GOT TO GO BEFORE THE COUNCIL, AND SO IN ORDER TO BE ABLE TO WORK ON PROJECTS, WE NEEDED THE ABILITY TO BOND FUNDS AND HAVE A DEDICATED SOURCE, AND THAT'S ONE REASON WHY LEDA WAS ESTABLISHED IN 2004.MARKET LUBBOCK AT THAT TIME WAS SUPPOSED TO BE A SISTER ORGANIZATION TO LEDA, AND WAS MEANT TO REALLY TRY TO GET JOBS AND INVESTMENT.
IT'S EVOLVED OVER TIME, AS COUNCILS HAVE EVOLVED OVER TIME.
WE DO A LOT OF OUR ECONOMIC DEVELOPMENT EFFORTS OUT OF MARKET LUBBOCK THAT WE ARE NOT ALLOWED TO DO OUT OF LEDA, BUT ARE STILL GOOD FOR OUR COMMUNITY.
BUT WE ALSO DO SOME COMMUNITY DEVELOPMENT PROJECTS OUT OF MARKET LUBBOCK.
MR. COLLINS MENTIONED BERL HUFFMAN, AND THAT WAS ONE OF THE PROJECTS THAT WE FUNDED OUT OF MARKET LUBBOCK BACK IN THE DAY.
OUR BUDGET FOR MARKET LUBBOCK ALSO INCLUDES OUR EFFORTS AT THE INNOVATION HUB, THAT'S THROUGH TEXAS TECH UNIVERSITY AND TO GROW AND DEVELOP ENTREPRENEURS AND TO CREATE START-UPS THAT ARE UTILIZING THE TECHNOLOGIES COMING OUT OF THE UNIVERSITY.
LEDA IS NOT ALLOWED TO FUND A STATE AGENCY, AND BECAUSE TEXAS TECH IS PART OF THE STATE AGENCY SYSTEM, THEN WE HAVE TO DO THAT OUT OF MARKET LUBBOCK.
MANY OF OUR DOWNTOWN BUSINESSES ARE RETAIL IN NATURE AND NOT ELIGIBLE TO BE INCENTIVIZED THROUGH LEDA, WHICH IS ONE REASON WHY WE DO OUR DOWNTOWN GRANTS AND COMMERCIAL REVITALIZATION GRANTS OUT OF MARKET LUBBOCK.
THOSE ARE JUST A FEW OF THE EXAMPLES.
LOOKING AT OUR REVENUES, THAT IS THE NUMBER THAT'S BEEN PROVIDED TO US BY CITY STAFF.
IT DOES REQUIRE US TO UTILIZE SOME NET ASSETS.
THEN FROM A COMPENSATION STANDPOINT, WE ALLOCATE ALL OF OUR PERSONNEL AMONGST ALL OF OUR ENTITIES, SO WE DON'T HAVE FOUR DIFFERENT CEOS, WE HAVE ONE CEO, AND MY SALARY IS ALLOCATED OVER ALL OF THEM.
IT'S A 3% RAISE HERE IN MARKET LUBBOCK AS WELL, BUT BECAUSE WE HAVE ONE OF OUR POSITIONS THAT IS GOING TO BE DUPLICATE IN THIS NEXT YEAR, THAT'S ONE REASON WHY YOU SEE THE INCREASE BE SO MUCH.
THEY ARE ALSO A COMPONENT OF THE RENT, AND SO SINCE WE HAVEN'T NEGOTIATED THAT, THAT'S ONE REASON WHY WE SEE THE INCREASE THERE.
THEN WE ALSO OPERATE OUR FOREIGN TRADE ZONE PROGRAM OUT OF MARKET LUBBOCK.
THERE IS A NEW ORGANIZATION IN TEXAS CALLED THE TEXAS ASSOCIATION OF FOREIGN TRADE ZONES, SO OUR MEMBERSHIP DUES ARE PART OF IT, AND IT MAKES THAT NUMBER GO UP A DECENT AMOUNT.
FROM A MARKETING PERSPECTIVE, THAT'S MOSTLY RELATED TO OUR DOWNTOWN MARKETING EFFORTS TO TRY TO GET NOT ONLY PEOPLE TO GO AND VISIT DOWNTOWN, BUT ALSO TO INVEST IN DOWNTOWN AND TO BE AWARE OF WHAT'S TAKING PLACE IN DOWNTOWN VERY SPECIFICALLY.
THEN WE DO HAVE THE MILLION DOLLAR GRANT THAT GOES TO LEDA, THAT IS PART OF OUR BUSINESS INCENTIVES AND SPECIAL PROJECTS LINE ITEM.
THERE IS 75,000 THAT GOES TO THE LUBBOCK CULTURAL ARTS FOUNDATION, WHICH IS ALSO HOUSED OVER IN OUR SHOP, AND THAT IS A JOINT EFFORT BETWEEN THE CITY OF LUBBOCK, OURSELVES, AND THE CH FOUNDATION TO HELP PROMOTE THE ARTS AND TO HELP DEVELOP THAT LONG-TERM.
OUR SPECIAL PROJECTS IS MOSTLY MADE UP OF THE BALL FIELDS, IT'S ABOUT 2.75 MILLION FOR THE 1,585 BALL FIELDS, THE TOM MARTIN COMPLEX.
WE DO HAVE SOME WORKFORCE PROGRAMS THAT WE ALSO DO OUT OF THERE.
SOME OF OUR HIGH DEMAND JOB TRAINING EFFORTS TO GROW CAREER AND TECHNICAL EDUCATION PROGRAMS THAT OUR HIGH SCHOOLS ARE DONE OUT OF THIS, OUR TEACHER EXTERNSHIP PROGRAM, OUR WORK EFFORTS ON THE TALENT PIPELINE MANAGEMENT, WHICH IS RIGHT NOW RELATED MOSTLY TO OUR HEALTHCARE AND GETTING AWARENESS OF OUR STUDENTS TO GO INTO HEALTHCARE INDUSTRIES, AS WELL AS INTO, ABOUT TO DEVELOP INTO THE MANUFACTURING SIDE OF THINGS, AND THEN JUST A FEW OTHER MINOR ONES.
THEN WE'VE GOT OUR DOWNTOWN GRANTS AS WELL AS OUR COMMERCIAL REVITALIZATION GRANTS, THOSE ARE REMAINING AT THE DOLLAR AMOUNTS THAT THEY PREVIOUSLY WERE IN THIS LAST YEAR.
THEN WE HAVE TRADITIONALLY ALLOCATED SOME MONEY AVAILABLE TO PURCHASE PROPERTY, AND IT'S BEEN USED ACTUALLY BEFORE, AND ONE OF THE BEST CASE SCENARIOS THAT WE USED IT FOR WAS WHEN WE WERE LOOKING AS A COMMUNITY TO MOVE THE DEPARTMENT OF PUBLIC SAFETY OUT OF DOWNTOWN AND MOVE IT OUT TO THE BUSINESS PARK.
THAT HELPED US TREMENDOUSLY BECAUSE IT BROUGHT A LOT OF SECURITY OUT TO THE BUSINESS PARK, BUT IT ALSO BROUGHT A NEW FACILITY FOR DPS AND 38 NEW OFFICERS INTO OUR COMMUNITY,
[04:30:01]
THEY TURNED THAT INTO A REGIONAL HEADQUARTERS.THEN ONE OF THE BEST PARTS WAS THAT THERE WAS THE ABILITY TO SWAP THAT LAND SO THAT EVENTUALLY BUDDY HOLLY HALL COULD TAKE PLACE.
HOWEVER, NONE OF THAT COULD HAVE TAKEN PLACE IF LEDA DIDN'T HAVE MARKET LUBBOCK AS ITS SISTER ORGANIZATION BECAUSE THAT LAND WAS OWNED BY LEDA AND NOT ALLOWED TO BE GRANTED TO A STATE AGENCY, SUCH AS DPS.
WHAT WE DID WAS WE HAD MARKET LUBBOCK BUY THE LAND FROM LEDA AT FAIR MARKET VALUE, GRANT THAT LAND FREE OF CHARGE TO THE CITY OF LUBBOCK, WHO THEN USED THAT TO SWAP WITH DPS, AND THAT'S WHAT MADE THAT TRANSACTION ALL TAKE PLACE.
WE'VE GOT THAT THERE PRIMARILY TO HELP US IN SITUATIONS WHERE THE PROJECT IS A GREAT PROJECT, BUT LEGALLY, WE'RE NOT ALLOWED TO UTILIZE LEDA SPECIFICALLY TO INCENTIVIZE IT.
HAPPY TO ANSWER ANY QUESTIONS.
>> ANY FURTHER QUESTIONS? THANK YOU, MR. OSBORNE.
WITH THAT, I BELIEVE WE WILL STAND ADJOURNED FOR TODAY.
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* This transcript was compiled from uncorrected Closed Captioning.