[00:00:02] >> IT'S 2:00. THE CITY COUNCIL IS NOW CONVENING IN WORK SESSION REGARDING ITEMS FOR PRESENTATION AND DISCUSSION ON SUCH ISSUES AS MAY REQUIRE IN DEPTH CONSIDERATION BY THE CITY COUNCIL. THAT IS UNDERSTATING WHAT'S GOING TO HAPPEN. IT IN DEPTH IS FOR SURE. [1. Presentation and discussion of the Proposed FY 2025-26 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.] TAKE IT AWAY, CITY MANAGER. HAVE FUN WITH US TODAY, [LAUGHTER] >> SOMEBODY HELPED ME REMEMBER. HE SAID, HAVE FUN TODAY. MAYOR CITY COUNCIL, WELCOME. IF WE COULD GO AHEAD AND SWITCH OUR INPUTS OVER, THANK YOU. MAYOR, COUNSEL, WE'VE GOT COPIES OF THIS PRESENTATION, PHYSICAL COPIES ON THE WAY DOWNSTAIRS TO YOU. THEY SHOULD BE HERE AT ANY MOMENT. YOU ALSO HAVE THIS SAME PRESENTATION IN YOUR EMAIL FROM JUST MOMENTS AGO. AS WE ALWAYS DO, A COUPLE OF STATEMENTS I NEED TO MAKE AS WE BEGIN. WHAT YOU'RE GOING TO SEE TODAY AND TOMORROW AND POTENTIALLY WEDNESDAY AND THURSDAY IS THE PROPOSED BUDGET. IT'S THE BUDGET THAT I BRING AND GIVE TO YOU. IT COMPLIES WITH STATE LAW. IT COMPLIES WITH CITY CHARTER. IT IS A BALANCED BUDGET. YOU WILL SEE HOW THAT COMES OUT WHEN WE GET TO IT. IN MY OPINION, BEST REPRESENTS THE NEEDS OF THE CITY. ULTIMATELY, IT IS YOUR BUDGET, THOUGH. AS WE GO THROUGH, ANY QUESTIONS, SUGGESTIONS, COMMENTS, CHANGES, PLEASE PUT THOSE UP FOR DISCUSSION, AND WE WILL BE GLAD TO WORK OUR WAY THROUGH THOSE. WE'LL DO A LITTLE BIT ON THE SCHEDULE. DON'T NEED TO SPEND MUCH TIME ON THAT. WHAT YOU HAVE TODAY IS PART 1. PART 2, OF COURSE, WILL BE YOUR ENTERPRISE FUNDS, YOUR INTERNAL SERVICES, COMPONENT UNITS, ALL OF THAT, AS WELL AS A GOOD ROUND UP DISCUSSION WHEN WE END. COUNSEL, THERE ARE NO ACTIONS TO TAKE THIS WEEK. THE FIRST ACTION ON THE BUDGET IS YOUR AUGUST THE 12TH MEETING. THAT IS THE DAY THAT YOU PROPOSE THE MAXIMUM TAX RATE. YOU'LL PROBABLY REMEMBER THAT FROM PRIOR YEARS. IT'S NOT VOTING ON. IT IS NOT APPROVING. IT'S GIVING US WHAT WE NEED TO FOLLOW THE STATE PROCESS OF PUBLICATION, NOTICES IN THE PAPER, AND ALL THAT STUFF. REAL QUICK, LOOK AT OUR CURRENT YEAR FISCAL YEAR 25. THIS SHOULD LOOK FAMILIAR. THIS WAS THE OUTCOME WHEN WE FINISHED THE BUDGET. LAST SEPTEMBER, THE THING THAT IS RELEVANT TO NOTE AND NOT A SURPRISE, THE PIE CHART ON THE LEFT, SALES TAX AT 105.6 MILLION. THAT'S THE BUDGET NUMBER. REMEMBER, THAT'S NOT WHERE WE'RE GOING TO LAND, BUT THAT WAS THE BUDGET NUMBERS, AND ALL THESE SLIDES ARE BUDGET TO BUDGET. THE GENERAL FUND, JUST UNDER 291 MILLION, YOU SEE THE SAME THING ACROSS THE TOP WITH YOUR REVENUES. AGAIN, THE 105.6 IS THE ONE THAT'S NOT GOING TO WORK. THEN YOU SEE THE EXPENSES ACROSS THE BOTTOM, THREE YEAR COMPARISON. REMINDER OF WHERE WE ENDED UP ON THE PROPERTY TAXES LAST YEAR, AND YOU CAN GO AHEAD AND SEE WE'VE LAID THE PROPOSED PROPERTY TAXES ON HERE. WE'LL GET INTO THEM IN DETAIL HERE IN A MOMENT. ACTUALLY, WE HAVE THIS SLIDE SLIGHTLY OUT OF ORDER. MY APOLOGIES. THIS IS THE ONE THAT GOES LATER. HERE'S THE SHORT VERSION. WE'LL GO AHEAD AND DO IT WHILE WE'RE HERE. THE TAX RATE CAPTURES THE FULL VALUE OF NEW GROWTH AND DEVELOPMENT, WHICH IS ACTUALLY DOWN SIGNIFICANTLY. WE DO HAVE A ONE HALF PENNY. YOU ALL HELP ME. I'M GOING TO TRY TO SAY PENNIES AND PER CENT RATHER THAN CENTS PER CENT. BUT PENNY, ONE HALF PENNY IS MOVING FROM YOUR INTEREST AND SEEKING OR INS RATE OVER TWO MAINTENANCE AND OPERATIONS. NOW, MOVING THAT HALF CENT OVER IS MORE REVENUE INTO THE MAINTENANCE AND OPERATIONS. IT IS LESS REVENUE INTO THE INS. IT IS NO CHANGE TO A TAXPAYER'S BILL. YET BY LAW, THAT IS A TAX INCREASE. WHEN WE TALK ABOUT THE 3.5%, KNOW THAT THIS ONE HALF PENNY IS ALREADY IN THERE. IT'S NOT 3.5% PLUS THIS. WE'RE ALREADY HAVING TO ACCOUNT FOR THAT ONE HALF PENNY. CURRENT YEAR, YOUR TAX RATE IS COMPOSED OF MAINTENANCE AND OPERATIONS AT 35.7456 PENNIES, AND YOUR INTEREST IN SINKING RATE IS 11.2664. TOTAL 47.0120 PENNIES. FOR THE PROPOSED BUDGET. YOU SEE MAINTENANCE AND OPERATIONS IS TO 37.1779, [00:05:02] THAT INCLUDES THAT ONE HALF PENNY. THEN YOU SEE INTEREST IN SINKING, IT'S REDUCED TO 10.75 86. TOTAL PROPOSED TAX RATE IS 47.9365 PENNIES. IT'S JUST UNDER A ONE PENNY PROPOSED CHANGE. YOU SEE AT THE BOTTOM, SALES TAX. WE'VE ALREADY TALKED ABOUT IT, JUST KNOW THAT THAT'S A THEME THAT KIND OF RIPPLES ITS WAY THROUGH OUR BUDGET. LAST YEAR, THE CURRENT BUDGET YEAR THAT WE SIT IN. THESE WERE THE FEE CHANGES THAT WERE IN THAT BUDGET. YOU'RE GOING TO SEE MUCH FEWER OF THOSE IN THE PROPOSED BUDGET. CPI OR INFLATION IS COMING DOWN. IT REALLY IS. YEAR OVER YEAR, WE'RE AT 2.7%. THAT'S GOOD. THAT IS HELPFUL. COUNSEL, I KNOW YOU ALL ARE AWARE, BUT JUST FOR THE AUDIENCES AT LARGE, WHEN INFLATION COMES DOWN, THAT DOES NOT MEAN THAT PRICES COME DOWN. IT MEANS THAT PRICES QUIT GOING UP AS FAST. IT DOESN'T ACTUALLY LOWER THEM. BUT NONETHELESS, THIS IS GOOD NEWS. HERE'S YOUR UNEMPLOYMENT RATE. WOULD NOTE THAT WHILE IT IS JUST VERY SLIGHTLY HIGHER THAN PRE PANDEMIC, WE ARE STILL RIGHT WHERE LUBBOCK HISTORICALLY SITS. WE HAVE A STRONG EMPLOYMENT MARKET. WE'RE GOING TO COME IN JUST UNDER THE STATE, CERTAINLY UNDER THE NATIONAL. WE'RE DOING REALLY GOOD WITH THIS ONE. THESE ARE OUR FULL TIME EQUIVALENT OR FTE COUNTS FOR THE LAST FOUR YEARS. YOU'LL SEE IN THE GENERAL FUND THIS YEAR, WE'RE LOWERING THAT COUNT AGAIN. QUESTIONS ON 25 BEFORE WE JUMP INTO 26. YOU ALL SAT THROUGH THAT FOR HOURS AND HOURS LAST YEAR, SO. >> ARE THERE ANY QUESTIONS? I DON'T SEE ANY. >> THESE NEXT COUPLE OF SLIDES ARE A LITTLE DIFFERENT THAN WHAT WE'VE DONE BEFORE. I'LL GO RIGHT BACK TO WHAT YOU'RE USED TO SEEING, BUT I REALLY FELT THE NEED TO PUT THESE OUT AND DISCUSS THEM. AS WE GO INTO THIS BUDGET, THERE'S A COUPLE OF THINGS THAT ARE BIG CHANGES, INCLUDING THE FACT I CAN'T TALK ANYMORE. IT'S SO EMOTIONAL. [LAUGHTER] WE HAVE ACCOMPLISHED A LOT AS A CITY AND A CITY COUNCIL OVER THE LAST FOUR OR FIVE YEARS, REALLY WITH EITHER NO OR VERY MINOR CHANGES TO THE TAX RATE. I THINK IT'S IMPORTANT TO SHOW HOW WE'VE BEEN ABLE TO DO THAT. IF YOU TALK JUST ABOUT SALES TAX, AND I'M NOT COUNTING OUR CURRENT YEAR BECAUSE WE KNOW WHERE IT IS. BUT IF YOU GO BACK THOSE FOUR PRIOR YEARS, THE AVERAGE YEAR OVER YEAR GROWTH IN SALES TAX WAS JUST A HAIR OVER $6,000,000. PLUS SIX. CURRENT YEAR, WE KNOW WE'RE GOING TO BE DOWN ROUGHLY FIVE. FOR THE NEW YEAR, WE STARTED AT 103.5. IT CONTINUED TO SCARE ME AS WE WORK THROUGH TO THE END OF IT. THE PROPOSED SALES TAX BUDGET IS GOING TO BE 103. THAT'S 2.5 MILLION LESS THAN WE BUDGETED FOR THIS YEAR, BUT WE KNOW WE'RE NOT GOING TO HIT THAT BUDGET ANYWAY. IT'S JUST A LITTLE OVER A 2% YEAR OVER YEAR ACTUAL TO NEW BUDGET. THAT'S COMING. NEW PROPERTY NEEDS TO BE DISCUSSED. THE VALUE OF NEW PROPERTY, THIS IS PROPERTY THAT WHEN YOU DID YOUR BUDGET THE PRIOR YEAR WAS NOT ON THE ROLLS IN ITS IMPROVED STATE. IT WAS A VACANT RESIDENTIAL LOT. IT WAS A COMMERCIAL CORNER, IT WAS AN INDUSTRIAL SITE. OVER THE COURSE OF THE TAX YEAR, WHICH IS A LITTLE DIFFERENT THAN THE FISCAL YEAR, BUT OVER THE COURSE OF THE TAX YEAR, IMPROVEMENTS WERE MADE. THE VALUE CHANGED, AND THAT VALUE THEN OF NEW PROPERTY COMES ONTO YOUR BUDGET, COMES ONTO YOUR TAX ROLLS BEFORE WE GET TO THE POINT OF TALKING ABOUT ANY CHANGES IN TAXES. IN FISCAL YEAR 24, YOU HAD $796 MILLION VALUE OF NEW PROPERTY THAT CAME ONTO YOUR TAX ROLLS, THAT GENERATED 3.8 MILLION DOLLAR. YOU TAKE THE NEW PROPERTY, YOU APPLY THE OLD RATE TO IT, AND THAT'S YOUR REVENUE. IN 25, THE CURRENT YEAR. IT WAS 701 YIELDING 3.3 MILLION. FOR THE BUDGET WE'RE STARTING TO TALK ON TODAY, [00:10:03] YOU'RE DOWN TO 408, YIELDING 1.52. THAT'S A 50% DROP OVER THREE YEARS. I WANT TO PROVIDE JUST A LITTLE BIT OF A CAUTIONARY NOTE, BUT THEN I'M GOING TO TRY TO FOLLOW IT UP WITH WHAT I THINK IS GOOD NEWS. WE'VE GOT TO KEEP IN MIND NOT FOR THIS BUDGET, BUT FOR WHEN WE SIT HERE NEXT SUMMER. THESE VALUES OF NEW PROPERTY FOR THE BUDGET YOU DO NEXT SUMMER WILL BE BASED ON THIS DECEMBER. DECEMBER 31, 2025 WILL SET THAT VALUE OF NEW PROPERTY THAT WE DO IN THE FOLLOWING BUDGET. WHY DO I BRING THAT UP? WE KNOW THAT BUILDING PERMIT, SINGLE FAMILY RESIDENTIAL PERMITS ARE GOING TO COME IN SOMEWHERE AROUND THAT 1,400 RANGE, MAYBE JUST A LITTLE UNDER, MAYBE A LITTLE OVER. I CANNOT SEE NOW HOW THE NEW PROPERTY VALUE FOR THE NEXT BUDGET IS GOING TO BE MUCH DIFFERENT THAN IT IS FOR THIS BUDGET. I REALLY THINK YOU'VE GOT TWO YEARS OF THIS. THEN, AND I'M ALSO MAKING SOME OTHER ASSUMPTIONS THAT ARE NOT WITHIN OUR CONTROL. THEY'RE IN WASHINGTON, DC. IF SOME OF THOSE DECISIONS ARE MADE, THE FY 28 BUDGET, YOU'RE LIKELY TO SEE A TRUE SPIKE. I DO NOT THINK WE'RE GOING TO SEE IT FOR THE FOLLOWING BUDGET FOR THE FY 27 BUDGET. THAT MAKES SENSE. IT'S ODD THAT YOU'RE DOING A BUDGET IN AUGUST, BUT YOUR TAX VALUES ARE BASED ON DECEMBER OF THE PRIOR YEAR. >> WE'RE ALWAYS WORKING ALMOST A YEAR BEHIND. >> CORRECT. >> ON FIGURES. THEY'RE ALMOST A YEAR OLD. CONSTRUCTION THAT MIGHT BE STARTING NOW IF IT'S COMPLETED IT WON'T BE COMPLETED UNTIL NEXT YEAR, BUT WON'T COME ONTO THE ROLLS THE FOLLOWING YEAR. >> THAT IS CORRECT. >> THAT'S WHY YOU'RE SAYING THAT WE CAN'T REALLY GIVEN THE SITUATION AT THE MOMENT, WE CAN'T BE LOOKING FOR THIS SITUATION TO IMPROVE MUCH AT ALL NEXT YEAR, IS THAT? >> YES, EXACTLY. >> EVEN IF WE HAD EXPLOSION OF HOUSE BUILDING STARTING RIGHT NOW, WE WON'T SEE THE RESULTS OF THAT. >> CORRECT. YOU HAVE FOUR MONTHS UNTIL THE VALUE LOCKS FOR THE FISCAL YEAR 27 NUMBER? >> HOUSES AREN'T GOING TO BE COMPLETED. THE OTHER QUESTION I HAD AND OTHERS MAY HAVE QUESTIONS BACK ON THE SALES TAX, IF WE COULD, WE WERE TRACKING THAT EARLIER IN THE YEAR, AND THIS SITUATION EXISTED ACROSS THE STATE AND MY UNDERSTANDING, ACROSS THE UNITED STATES AS WELL. ARE YOU STILL SEEING THAT? >> YEAH. WE WENT OVER THE JULY REPORT IN A WORK SESSION AND YOU'RE 100% CORRECT, MAYOR. WE ARE NOT UNUSUAL. THERE ARE ONLY TWO OF THE TOP TEN CITIES IN THE STATE THAT SHOW ANY SIGNIFICANT GROWTH YEAR OVER YEAR, MUCH LESS BUDGET VERSUS ACTUAL. WE'RE PREDICTING, AND OUR MODEL HAS BEEN VERY CLOSE ALL ALONG. WE ARE PREDICTING THAT WE'RE GOING TO COME IN JUST A COUPLE OF 100,000 OVER WHERE WE WERE THE PRIOR YEARS ACTUAL. >> THIS DOESN'T REALLY PORTEND TO WEAKNESS IN THE ECONOMY IN LUBBOCK SPECIFICALLY. IT IS ACROSS THE BOARD WEAKNESS. >> IT IS. >> ANYONE ELSE HAVE ANY QUESTIONS UP TO THIS POINT? I DON'T WANT TO GET TOO FAR AHEAD. MR. ROSE. >> SORRY. I JUST WANTED TO GO BACK AND EXPLAIN TO AT LEAST CITIZENS BECAUSE IT'S A HARD CONCEPT ON HOW WE ARE ABLE TO MOVE THAT HALF A PENNY FROM THE INTEREST IN SINKING TO THE M&O. >> YOU BET I'VE GOT MORE ON IT HERE IN A LITTLE BIT, BUT LET ME GO AHEAD AND LET ME GO AHEAD. >> IF YOU'VE GOT IF YOU'VE GOT SOMETHING MORE AHEAD, I DIDN'T WANT TO GET AHEAD OF YOU, BUT IF YOU GOT A LITTLE MORE AHEAD. >> WE'LL GO AHEAD AND DO IT NOW. IT'S A GREAT QUESTION. WE'LL STAY OVER HERE. FOR US, THE TAX RATE IS TWO DIFFERENT NUMBERS. IT'S THAT INTEREST AND SINKING, IT'S THAT MAINTENANCE AND OPERATIONS. THE INS TAX RATE STANDS ON ITS OWN, AND IT IS TO CREATE A FUND THAT GENERATES THE DOLLARS NEEDED TO PAY THE DEBT, INTEREST AND SINKING. OF COURSE, IT HAS A RESERVE COMPONENT, ALL THAT FUND STUFF THAT GOES WITH IT. THE SHINING STAR IN OUR BUDGET THIS YEAR IS INTEREST EARNINGS. WHEN WE DID ALL THE INTEREST RATE STUFF LAST SUMMER, WORKED WITH FINANCIAL ADVISORS, WORKED WITH ANY AND EVERYTHING WE COULD FIND. THERE WAS A DEFINITE EXPECTATION THAT INTEREST RATES WOULD DECLINE. THEY DID NOT. [00:15:06] BECAUSE YOUR INTEREST AND SINKING FUND HAS TWO POTS OF MONEY INSIDE OF IT. ONE IS THE REVENUE FROM THE TAX LEVY. THE SECOND IS THE INTEREST EARNINGS THAT ARE GENERATED OFF DOLLARS IN HAND. THAT FUND, AND SOME OF THIS IS RELATED TO TIMING OF WHEN WE DO THE DRAWDOWNS OR THE TRANCHES ON THE BIG ROAD BONDS. THAT FUND, IS GENERATING TREMENDOUS AMOUNTS OF INTEREST. WE ARE ABLE TO USE THAT INTEREST THIS YEAR, NEXT YEAR. WE ACTUALLY HAVE A FIVE YEAR PROJECTION. I DON'T WANT TO ASK YOU TO MOVE THIS PENNY AND THEN COME BACK NEXT YEAR AND SAY, GUESS WHAT? I'M A HALF PENNY SHORT. WE ARE NOT DOING THAT. THE REVENUE DIFFERENTIAL, WHICH IS ROUGHLY 1.2 MILLION DOLLAR OFF THAT HALF CENT. THAT REVENUE DIFFERENTIAL IS COVERED BY THE INTEREST EARNINGS. YOU'RE PULLING A DRAWDOWN ON THAT. THERE ARE SUFFICIENT, BOTH IN HAND AND FUTURE EARNINGS. THIS ISN'T GOING TO CAUSE US TO POP IT BACK UP. IN FACT, IN OUR FIVE YEAR MODEL, THE ONLY POP, IF YOU WANT TO CALL IT THAT, IN THE INS RATE IS THE NEXT TIME THAT THERE'S A LARGE DRAWDOWN MADE, BECAUSE THEN YOU START MAKING PAYMENTS ON THAT NEXT SET. >> THAT'S GREAT. THANK YOU. >> TAKING WHAT WAS ON THAT PRIOR SLIDE, I'M GOING TO FINISH UP WITH WHERE WE ENDED UP HAVING TO START THIS YEAR. IN THE PRIOR YEARS WITH A ROUGHLY SIX MILLION PLUS DOLLAR INCREASE IN SALES TAX AND A TWO AND A HALF PLUS MILLION DOLLAR INCREASE IN NEW PROPERTY, NEITHER OF THOSE ARE A COMPONENT OF A TAX INCREASE. YOU'VE STARTED EVERY BUDGET YEAR EIGHT AND A HALF MILLION TO THE GOOD. THIS YEAR, SALES TAX TWO AND A HALF MILLION BELOW THE PRIOR BUDGET, NEW PROPERTY REVENUE AT A MILLION AND A HALF RATHER THAN THE TWO AND A HALF OR BIGGER. WE STARTED A MILLION IN THE HOLE. I FULLY EXPECT TO SEE SALES TAX GET BETTER OVER THE COURSE OF THIS NEW FISCAL YEAR. I'M NOT SEEING ANYTHING THAT MAKES ME THINK THE NEW PROPERTY IS GOING TO BE IT'LL BE DIFFERENT. I JUST DON'T THINK IT'S GOING TO BE SUBSTANTIALLY DIFFERENT. THE BOTTOM OF THIS PAGE IS A FACT THAT I'VE NOT SEEN SINCE I'VE BEEN BACK IN LUBBOCK. YOUR YEAR OVER YEAR CHANGE IN THE VALUE OF THE AVERAGE, WHAT I SOMETIMES CALL THE MYTHICAL SINGLE FAMILY HOME, CHANGED BY 1.07%. OVER THE COURSE OF THE ENTIRE YEAR, THE VALUE OF THE AVERAGE HOME INCREASED BY $2,000. IT WAS NOT THAT LONG AGO THAT THE AVERAGE HOME WAS 183,000. YOU HAVE DEFINITELY SEEN THE VALUES, WHICH ULTIMATELY DRIVE EVERYTHING ELSE THAT WE DO. YOU'RE SEEING ALL THAT STUFF REALLY GET FLAT. WE'RE NOT NEGATIVE. IN FACT, WHAT WE WERE TOLD IN PRELIMINARY VALUES VERSUS WHAT THEY CALL CERTIFIED VALUES. AT THE TOP LINE, THOSE CAME IN REALLY CLOSE TO EACH OTHER. THEY DIDN'T CHANGE MUCH. WHAT DID CHANGE, WE STARTED WITH OUR PRELIMINARY ESTIMATES THAT TOLD US NEW PROPERTY WAS A LITTLE OVER 600 MILLION AND IT ENDED UP AT 400. THIRTY THREE PERCENT DROP BETWEEN THERE. NOW, THAT SAME DROP THERE ENDED UP AS A POSITIVE ON A COUPLE OF OUR TIF ZONES, WHICH IS GREAT FOR THE TIFS, BUT IT DOESN'T TRANSFER INTO MAINTENANCE AND OPERATION MONEY FOR Y'ALL TO USE TO RUN THE CITY. GOING TO ASK A QUESTION HERE. WE WERE ANTICIPATING MAYBE 600 MILLION COMES IN AT 400 MILLION. HOW DO WE TRACK THAT OR HOW DO WE MAKE OUR ESTIMATE? IS IT JUST OFF OF PAST IN PREVIOUS YEARS FIGURES? OR DO WE TRACK THAT DURING THE YEAR? IS THERE SOME WAY WE CANNOT BE CAUGHT OFF GUARD AS EASILY AS MAYBE WE WERE THIS YEAR? >> WELL, IT'S A GREAT QUESTION, AND IT GOES BACK TO WHAT GENERALLY COMES UP AS WE TALK ABOUT THIS. THE CITY HAS NOTHING TO DO WITH VALUES. THIS ALL COMES FROM THE LUBBOCK CENTRAL APPRAISAL DISTRICT. THEY TRULY ARE INDEPENDENT FROM US. THE ONLY BAROMETER WE HAVE IS YEAR AGO PERMITS. WHICH DOESN'T NECESSARILY TRANSLATE INTO VALUE, BUT IT GIVES US AT LEAST A NUMBER OF ACTIVITY, AN AMOUNT OF ACTIVITY, BUT NOT VALUE. WE REALLY DON'T. WHEN WE STARTED THIS BUDGET, KNOWING WHERE WE STOOD WITH THE INTEREST AND SINKING FUND AND THE INTEREST EARNINGS AND WHAT APPEARED TO BE THE 600 MILLION IN NEW PROPERTY, [00:20:04] I REALLY THOUGHT YOU COULD HAVE A BIGGER MOVE IN THAT INS RATE. I'M NOT ABLE TO PULL THAT OUT, NOT WITHOUT BEING NERVOUS THAT NEXT YEAR, I'M GOING TO SAY, PLEASE GIVE ME THE HALF, THE THREE QUARTERS, THE ONE, GIVE IT BACK. >> BUT BASICALLY WHAT YOU'RE SAYING IS WE DON'T HAVE ACCESS TO ANY INFORMATION BECAUSE IT'S A CONTROVERSIAL DISTRICT INFORMATION THAT ALLOWS US TO REALLY HAVE A HANDLE ON THAT? >> THAT IS CORRECT. >> WE GET THAT INFORMATION WHEN WE GET IT. >> I GET TWO SETS OF NUMBERS A YEAR. WE GET THE PRELIMINARY VALUES, THE ESTIMATED VALUES, LATE MARCH? >> LATE MARCH. >> THEN WE GET THE CERTIFIES THE FINAL VALUES. THOSE COME OUT. WE ACTUALLY GOT THEM A LITTLE EARLIER THIS YEAR, BUT IT WAS A WEEK AGO THURSDAY WHEN THOSE CAME OUT. >> MORE ON THAT? >> WE'RE GOING TO GO BACK TO THE STUFF THAT LOOKS MORE COMMON. WE'VE ALREADY TALKED THROUGH THIS SLIDE BECAUSE I HAD THE WRONG ONE IN EARLIER. THE ONE DIFFERENCE ON THIS, THERE'S A THIRD BULLET DOWN HERE AT SALES TAX. I'VE ALREADY COVERED IT BURBE BUT THERE IT IS, IN WRITING, WE'RE BUDGETING SALES TAX AT A 103 MILLION, WHICH IS A TWO AND A HALF PERCENT DECREASE TO THE CURRENT YEAR'S BUDGET. SINCE WE'RE CENTERING UP RIGHT AT 100 MILLION, IT'S EASY TO SAY THAT'S 2.3 OVER THE ACTUALS. MAYOR. MR. ROSE. >> IT'S A DECREASE FROM WHAT WE BUDGETED LAST YEAR BUT, WHAT WAS THE INCREASE FROM LAST YEAR, ACTUAL INCREASE? >> 2.3. >> 2.3 AND THEN WE'RE BUDGETING AROUND TWO FOR NEXT YEAR. >> NO. YOU'RE TALKING ABOUT THE BUDGET FROM A YEAR BEFORE? >> WE BUDGETED IN A 4% INCREASE FROM LAST YEAR? >> SIX. >> SIX. WHAT ARE WE THINKING WE'RE GOING TO COME OUT PERCENTAGE WISE? >> ABOUT A 10TH OF A PERCENT OVER THE PRIOR ACTUAL. >> THEN THIS YEAR WE'RE DOING 2% IS WHAT'S PROPOSED. >> CORRECT. >> THANKS. >> 2.3. >> THE GOOD THING, AND WE'VE TALKED ABOUT IT SEVERAL TIMES DURING WORK SESSIONS. WE'RE NOT DIFFERENT THAN THE REST OF THE STATE, AND WE'RE NOT BELOW PRIOR YEAR, WE'RE JUST BELOW BUDGET. THAT'S WHY WE PUT THE FREEZES AND THE CUTS AND THOSE THINGS INTO PLACE. ANY MORE ON THIS ONE? SAYING AT THOSE TOP LINE DEALS. THE ONLY ALL ENCOMPASSING RATE CHANGE THAT WE HAVE PROPOSED IN THIS BUDGET IS THAT NEXT ONE DOLLAR ON SOLID WASTE. THAT BUILDS YOU IN TO THAT FINAL STEP AS WE GO TO THE TRANSFER STATION. WE'VE GOT TO CONTINUE TO DO THAT. NO CHANGES IN WATER, NO CHANGES IN WASTEWATER, NO CHANGES IN ST WATER. >> LAST YEAR, WE INCREASED WITH A DOLLAR. >> THAT IS CORRECT. >> WE'RE INCREASING IT ANOTHER DOLLAR. >> CORRECT. >> THE REASON FOR THAT IS, AGAIN. >> YOU'RE BUILDING INTO WHAT WE NEED FOR THE DEBT SERVICE AND THE INITIAL PURCHASES TO GET US GOING ON THE TRANSFER STATION. WE'RE GOING TO GO THROUGH JUST ON EACH PAGE, THE CHART WILL BE THE SAME. ON EACH PAGE THE HIGHLIGHTED PART IS WHAT WE'RE GOING TO WALK THROUGH. THIS IS YOUR BIG PICTURE ON THE GENERAL FUND. YOU SEE ON THE LEFT COLUMN WITH NUMBERS, THE FY 25, THAT'S THIS YEAR. YOU SEE THE PROPOSED FY 26. AS WE GET THROUGH THIS, YOU'LL SEE WHERE ALL THESE CHANGES ARE OR ARE NOT. PROPERTY TAX, IS IT 5.3 MILLION? THAT'S A DIFFERENT NUMBER THAN YOU'LL SEE IN OTHER PLACES. THE DIFFERENCES ARE WHAT PART GOES TO INTEREST AND SINKING, AND HOW DOES THE LEVY FOR THE SENIOR TAX FREEZE COME IN? WE'LL DRILL IT DOWN INTO THE ACTUAL DOLLARS YOU CAN SPEND, BUT THAT'S WHERE ALL THAT IS. YOU SEE THE CHANGE, THE REDUCTION IN THE SALES TAX BUDGET TO BUDGET? BUT WHAT WE WANT TO TALK ABOUT ON HERE, THERE'S A VERY SLIGHT INCREASE IN WHAT WE CALL THE OTHER TAXES. [00:25:05] DELINQUENT TAXES ARE UP SLIGHTLY. SOME OF THAT IS AS PEOPLE ARE WORKING THEIR WAY OUT OF PROTESTS AND OR VALUATION SUITS. THE SECOND IS THE BINGO TAX, FOR THE FIRST TIME IN YEARS, THAT STATE COLLECTION ON BINGO TAX IS GOING UP SLIGHTLY. THE NEXT ONE FRANCHISE FEES AND RIGHT OF WAY THIS IS AN ACCOUNT THAT CONTINUES TO DECREASE, PRETTY MUCH EVERY YEAR. SOMETIMES IT'S SLIGHT, SOMETIMES IT'S LIKE THIS, ABOUT 685,000. BUT WE NO LONGER AT THE LOCAL LEVEL, SET FRANCHISES AND FRANCHISE RATES THAT'S DONE THROUGH THE STATE. YOU STILL HAVE A LOCAL AGREEMENT THAT GOVERNS HOW YOU WORK IN THE RIGHT OF WAY, BUT YOU DON'T SET THE RATES. BUT A BIG PART OF WHAT YOU'RE SEEING IS THE IMPACT OF WHAT HISTORICALLY HAVE BEEN SEPARATE SERVICES THAT ARE NOW BEING BUNDLED. THERE WAS ALSO A CHANGE IN THE LEGISLATURE THIS YEAR THAT WHEN IT GETS ALL THE WAY THROUGH, IS GOING TO PROBABLY KNOCK THIS DOWN, AND IT'S BASED ON HOW THEY BUNDLE CERTAIN SERVICES AS THEY COME THROUGH. YOU'VE GOT A VERY SLIGHT INCREASE THAT CAME IN THROUGH SOUTH PLAINS ELECTRIC COOP, THAT'S GROWTH AND WEST TEXAS GAS. YOUR BIG ONES THAT WENT DOWN WERE SUDDENLINK AND ATMAS. REALLY, THE BIG ONE WAS SUDDENLINK, WHICH IS REALLY OPTIMUM. THEIR FRANCHISE NAME IS SUDDENLY. FEES FOR SERVICES, THAT'S REALLY THE SOLID WASTE DOLLAR THAT YOU SEE WORKING ITS WAY THROUGH THAT ACCOUNT. THERE ARE SOME SLIGHT LIKE FIELD RENTAL CHANGES THAT ARE IN PART. WE'LL GET TO THOSE AND LOOK AT THEM IN DETAIL AND THEN SOME SLIGHT DECREASES AT DEVELOPMENT SERVICES. THAT'S A VOLUME, AND THEN CITY SECRETARY AND PUBLIC HEALTH. ON THOSE THREE THAT ARE HIGHLIGHTED, QUESTIONS BEFORE I GO TO THE NEXT ONE. WE'VE GOT FOUR ON HERE THAT WE'VE HIGHLIGHTED, LICENSE AND PERMITS. ALSO, YOU'RE SEEING A VOLUME RELATED DECREASE THROUGH CONSTRUCTION, AND YOU'RE SEEING A DECLINE IN THE MIXED BEVERAGE PERMITS. THOSE ARE NEW. REMEMBER, WE LOOKED STATE WIDE, MIXED BEVERAGE TAXES ARE STILL UP AROUND THE STATE, BUT NEW PERMITS, AT LEAST IN LUBBOCK. FINES AND FORFEITURES, THAT'S MAINLY THE INCREASED ACTIVITY OVER AT MUNICIPAL COURT. THEN HERE'S YOUR BIG ONE, 2.9 INCREASE IN INTEREST EARNINGS FOR THE SAME REASONS. THE RATES HAVE STAYED HIGH BEYOND EXPECTATION. THE MONEY YOU HAVE ON HAND CONTINUES TO MAKE YOU MORE MONEY. I WOULD GLADLY TRADE THAT TO GO BACK TO A ROCKET SHIP ECONOMY, BUT THIS IS OUR BENEFIT FOR THIS YEAR. THEN OTHER REVENUES. THIS IS THE PILOT PAYMENTS FROM LUBBOCK POWER AND LIGHT WATER, WASTEWATER, STORM-WATER, MAINLY BECAUSE THEIR FIXED ASSETS TO INCREASE. PILOT IS PAYMENT IN LIEU OF PROPERTY TAX. THE NEXT ONE, WE HAVE A DECLINE IN TRANSFERS OR A DECREASE IN TRANSFERS. THIS WAS ABOUT 1.3 MILLION THAT APPLIED TO THE DEVELOPER AGREEMENT PROJECT TO PAVE QUAKER BETWEEN 146TH AND WOODROW. THAT'S THE MAJORITY OF THAT ONE. THE SMALLER VARIANCES CAME OUT OF SOLID WATER WASTEWATER TRANSFER, AIRPORT FUND, ETC. CONTINUING ON. COMPENSATION IS THE FIRST LINE HIGHLIGHTED HERE. THIS IS NOT COST OF LIVING OR RAISES. THAT'S IN A SEPARATE LINE AT THE BOTTOM. THE INCREASE IN COMPENSATION AND BENEFITS IN YOUR BASE BUDGET IS PREDOMINANTLY THE STEP INCREASES FOR CIVIL SERVICE. THERE IS A STEP INCREASE SCHEDULE THAT LARGELY IS OUTSIDE OF OUR CONTROL. THAT'S HOW A CIVIL SERVICE PERSON THAT MIGHT BE FIREFIGHTER RANK, POLICE OFFICER RANK, THAT'S HOW THEY STEP UP AS THEY GO THROUGH THEIR YEARS OF EXPERIENCE. THAT 918,000 ON THE COMPENSATION LINE, ABOUT NINETY NINE AND A HALF PERCENT OF THAT IS STEP INCREASE. MOVING DOWN, BENEFITS. WE'VE HAD SOME GOOD STUFF YOU'RE GOING TO SEE WITH HEALTH PLAN GOOD, MEANING IT DIDN'T GO UP NEAR AS MUCH AS EVERYBODY EXPECTED IT TO BE, BUT THERE'S JUST SOME OTHER COSTS THAT GO ALONG WITH BENEFITS TO INCLUDE THE VALUE OF BENEFITS RELATED TO STEP INCREASES. [00:30:05] WE HAVE MAINTENANCE GOING DOWN BY 600,000, AND WE HAVE PROFESSIONAL SERVICES GOING UP BY 668. THE BIG CHANGE IN PROFESSIONAL SERVICES IS ACTUALLY THE MOWING CONTRACT FOR PARKS, WHERE WE'RE PICKING ALL THAT BACK UP AND MAKING IT WORK. THE INCREASE IN THAT PARKS CONTRACT IS NOT ONE. IT'S A SERIES OF CONTRACTS. THAT'S 971,000. BUT THE OVERALL INCREASE IS 668. WE'VE BEEN ABLE TO PULL OUT OTHERS TO WORK ON OFFSETTING THAT. >> JUST A QUESTION ON THAT. THAT'S A PRETTY BIG JUMP RIGHT THERE IN MOWING. HOW IS THAT TAKEN CARE OF WE WERE MOWING OUR PARKS? WE WERE DOING IT INTERNALLY. NOW WE'RE DOING IT THROUGH CONTRACTS. WHAT? >> THE VAST MAJORITY OF MOWING IN LUBBOCK HAS ALWAYS BEEN BY CONTRACT. UNTIL RECENTLY, THE WAY WE HAVE DONE THAT IS PARKS DIVIDES THE CITY UP INTO ZONES, AND WE ISSUE CONTRACTS BY THE ZONE AND WE'VE HAD MULTIPLE FAILURES, I GUESS, IS THE EASIEST WAY TO SAY IT OF CONTRACTORS THAT COULDN'T GET THAT DONE. WE ALSO HAVE NOT BEEN TO THE LEVEL, WE PROBABLY SHOULD TAKING CARE OF THOSE PORTIONS OF THE TEXT DOT RIGHT AWAY THAT THE CITY BARGAINED TO DO MANY YEARS AGO BEFORE ANY OF US WERE UP HERE. WE NOW HAVE MORE OF A MASTER CONTRACT ARRANGEMENT TO DO THAT. THIS IS THE FIRST YEAR, EVEN WITH THE RAINS THAT I'M GETTING COMPLIMENTS ABOUT HOW THAT'S WORKING RATHER THAN COMPLAINTS ABOUT IT. OUR MOWING ABILITIES IN HOUSE ARE MORE LIMITED. WE MOW IN FRONT OF SPECIAL EVENTS WHEN THERE'S SOMETHING BIG GOING ON IN THE PARK. WE DO THAT IN HOUSE, BUT THAT'S BECAUSE OTHERWISE, WE PAY FOR AN OUT OF CYCLE MOWING BY OUR CONTRACTORS. WE'VE LOOKED SEVERAL TIMES AT BRINGING IT ALL IN HOUSE, AND EVEN AT THIS INCREASED COST, IT'S NOT GOING TO SAVE US MONEY TO DO THAT. PLUS I PICK UP A LONG TERM LIABILITY FROM PEP. >> WE SHOULD SEE A BENEFIT FROM THAT, THOUGH, IN OUR PARK MAINTENANCE? >> YES. >> HOPEFULLY THE CITIZENS WILL APPRECIATE. >> WELL, MAYOR, THINKING, BACK, EVEN AT OUR MOST RECENT COFFEE, WE GOT TO THANK YOU FOR THAT WHEN NORMALLY IT GOES THE OTHER WAY. WHY HAVEN'T YOU MOWED THAT PARK? THAT WAS FOLLOWING THREE WEEKS OF RAIN. >> OUR PARKS ARE LOOKING MUCH BETTER. >> THEY REALLY ARE ARE. >> THEY'RE LOOKING MUCH BETTER. ONE OTHER QUESTION I HAD. WORKERS' COMPENSATION COMES UNDER COMPENSATION. WHERE DO WE PUT THAT IN OUR BUDGET? >> WHERE DO WE PUT IT? >> YEAH. >> IT GOES INTO THE BENEFITS LINE ITEM. >> IT'S IN THE BENEFITS LINE. >> NO. MY MISTAKE. IT'S IN ION INSURANCE, AND YOU'LL SEE THE SAVINGS FOR THAT HERE IN THIS A MINUTE. WORKERS COMP ACTUALLY WENT DOWN. >> I SAW THAT IN YOUR EXECUTIVE SUMMARY, AND I WAS JUST TRYING TO FIGURE OUT WHERE IT APPEARS HERE IN YOUR CHARTS HERE. YOU'RE GOING TO TALK ABOUT THE VETERANS CEMETERY IN A MINUTE. >> YES. WHEN WE GET TO THE EMPLOYEE LOADS, WE'LL TALK ABOUT THAT. ANY MORE ON THIS ONE? THERE'S ALWAYS MORE TO COME. >> HERE'S YOUR TWO LINES HERE, OTHER CHARGES AND SCHEDULED CHARGES. OTHER CHARGES, YOU SEE A PRETTY SIGNIFICANT DECREASE. OF COURSE, COUNCIL COMPLETED THE PURCHASE OF THE BUILDING THAT IS THE GODEKE LIBRARY. YOU'RE NOW SEEING THE SAVINGS FROM NO LONGER PAYING THAT RENT. CITY HAS LONG MAINTAINED A SINGLE ITEM IN THE CITY MANAGER'S BUDGET FOR SPECIAL PROJECTS. THAT'S FOR THINGS THAT COME UP OVER THE COURSE OF A YEAR THAT WERE NOT CONTEMPLATED. I'VE GONE AHEAD AND TAKEN THAT OUT OF THE BUDGET. WE'VE REDUCED SOME OF OUR DEMOLITION COSTS. WE'VE MOVED THE ANNUAL WRECKED VEHICLE COST. THIS IS AN ACCOUNT WE'VE STRUGGLED WITH FOREVER, AND IT'S LARGELY USED TO PAY FOR POLICE VEHICLES THAT ARE IN WRECKS. IF THAT GETS INVOLVED IN INSURANCE, IT OFTEN IS NOT SUFFICIENT TO COVER THE COST OF A VEHICLE. IF IT GETS CAUGHT IN LITIGATION, IT CAN TAKE FOREVER AND EVER, BUT WE NEED THOSE VEHICLES. THAT'S WHAT THAT IS. SCHEDULED CHARGES, THE IT CHARGES ARE UP. PROPERTY INSURANCE IS UP SLIGHTLY. SOME OF THAT IS BECAUSE WE'VE ADDED TWO NEW FACILITIES BACK TO THE PROPERTY ROSTER, THAT BEING FIRE STATION 20 AND THE NEW PROPERTY AND EVIDENCE WAREHOUSE OVER ON THE HILL. LIABILITY WAS A VERY MINOR INCREASE. [00:35:03] NATURAL GAS IS UP A BIT. OUR ELECTRIC COSTS ARE DOWN, AND I KNOW IN THE GRAND SCHEME OF THINGS, 156,000 IS NOT HUGE. BUT REMEMBER, THIS IS THE FIRST FULL YEAR THAT WE'VE BEEN UNDER CONTRACTING FOR OUR OWN ELECTRICITY. WE PREDICTED SAVINGS, AND WE'RE ACTUALLY WE'RE SEEING IT. I'M PRETTY PLEASED WE GOT ANOTHER YEAR TO GO AND THEN WE REDO THOSE CONTRACTS. BUT THAT ONE PRETTY HAPPY ABOUT. I WISH THE NUMBER WAS BIGGER, BUT IT'S STILL A NEGATIVE. WE READY FOR THE NEXT? CAPITAL OUTLAY, A COUPLE OF CHANGES IN HERE. THE TAX NOTES FOR VEHICLES AND IN THE GENERAL FUND, THAT IS GOING TO BE LIMITED TO SOLID WASTE AND TO FIRE. THOSE ARE YOUR TAX NOTE FUNDED VEHICLES. WE'VE CHANGED, AGAIN, THIS IS ALL TRYING TO SHOW YOU THAT A SINGLE DEPARTMENT IS COVERING A SINGLE COST. YOU'VE GOT THE DEPARTMENTAL TRANSFERS THAT PAY FOR THAT ARE COMING UP INTO HERE. THE TRANSFERS ARE GOING DOWN. WE'VE BEEN ABLE TO ALSO USE THOSE AVAILABLE RESERVES. THAT'S PART OF THE TAX NOTE PAYMENT IN SOLID WASTE. THAT'S WHAT IT'S FOR. THEN YOU'VE GOT REDUCTION IN TRAFFIC, PUBLIC SAFETY STREETS, THE GENERAL CIP TRANSFER, YOU'VE GOT CIP DETAILS A LITTLE FURTHER IN TODAY. THE TRANSFER TO GATEWAY. SOME OF THAT'S BECAUSE REVENUES ARE DOWN. THAT ONE'S NOT QUITE AS GOOD NEWS. INTERNAL SERVICE FUND TRANSFER IS UP ABOUT 1.4 MILLION. FLEET TRANSFER FOR VEHICLES. THAT'S OUR ABILITY TO DO CASH PURCHASING OF VEHICLES AND THEN CEMETERY, AND THAT'S COVERING WHAT WE'RE DOING TO IMPROVE THE EXISTING LUBBOCK CEMETERY. THAT'S NOT THE VETERANS CEMETERY. YOU'RE NOT PUTTING ANY CAPITAL DOLLARS AT THE VETERANS CEMETERY. SIDE BAR, SINCE I'VE CALLED FLEET OUT, WE'LL GO AHEAD AND JUST COVER IT. YOU'VE GOT DETAIL LATER ON. BECAUSE WE'VE HAD GOOD RESERVES AND WE'VE HAD GOOD EARNINGS, WE ARE ABLE TO KEEP UP LITERALLY 100% WITH OUR FLEET PURCHASES FOR THIS YEAR. THAT'S ALL ONE TIME MONEY. I CAN'T PEEL IT OVER INTO OPERATIONS. WE'VE REALLY JUST NOW RECOVERED FROM THE TRAIN WRECK THAT COVID WAS ON OUR FLEET. NOT BECAUSE WE DIDN'T HAVE MONEY, WE DID. WE JUST COULDN'T GET THE STUFF, SO WE'VE ABOUT WORKED THAT ENTIRELY OUT. I REALLY DON'T WANT TO GET US BACK IN THAT. IT TAKES TOO LONG TO TRY TO GET THAT FIXED. I DIDN'T DO THE AVERAGE AGE THIS YEAR OF THE VEHICLES WE'RE REPLACING, BUT I BET YOU IT'S MORE THAN 10 YEARS. I REALLY WANT TO KEEP US GOING WITH THAT. ANYMORE ON THAT ONE? WHERE DO WE STAND WITH STAFFINGS? THESE ARE A LOT OF DIFFERENT NUMBERS THAT ARE WIGGLING AROUND. LET ME JUST WALK US THROUGH THE GENERAL FUND PART OF IT FIRST. THERE ARE 13 POSITIONS PROPOSED TO BE ELIMINATED. SOMEBODY'S GOING TO ASK ABOUT THE POLICE PROPERTY TECHNICIANS. THAT WAS ACTUALLY DONE OVER THE COURSE OF THIS YEAR. THAT WAS AN OPPORTUNITY THAT CHIEF HERMAN SAW TO TAKE VACANT POSITIONS, GET RID OF TWO TO INCREASE THE VALUE OF A DIFFERENT POSITION AND FILL HIS NEEDS BETTER, SO THAT ONE WAS DONE OVER THE COURSE OF THE YEAR. BUT YOU SEE THE OTHERS THAT WE ARE PULLING OUT. NOW, FOR THE GENERAL FUND, YOU HAVE 13 POSITIONS ELIMINATED. I'M PROPOSING, AND THIS IS ON THE RIGHT HAND COLUMN. THIS BUDGET PROPOSES TO ADD TWO. WE'RE GOING TO ADD TWO, AND THOSE ARE FIELD OFFICERS FOR ANIMAL CONTROL. THE ACOS, ANIMAL CONTROL OFFICERS. THE TRUE CHANGE IN THE GENERAL FUND IF WE ACCEPT THE ADDITION OF THESE ACOS, IS -11. YOU'LL SEE ALSO, THOUGH ON THE RIGHT COLUMN NINE FTES FOR THE WEST TEXAS VETERANS CEMETERY. WE HAVE TO CARRY THOSE ON OUR BOOKS, BUT THE CITY OF LUBBOCK DOES NOT PAY FOR THEM. THEY ARE 100% FUNDED THROUGH THE CONTRACT WITH THE TEXAS VETERANS LAND BOARD. THAT INCLUDES BOTH COMPENSATION AND BENEFITS. THEY PAY 100% OF THE FREIGHT. THAT MAKES SENSE? IT'S A TRUE -11 THAT IS BEING PAID FOR BY THE CITY. >> YOU'RE SAYING -11 BECAUSE YOU'RE NOT COUNTING THOSE TWO THAT WE'VE ALREADY ELIMINATED FROM THE POT? >> THEY'RE IN HERE. THERE'S YEAR OVER YEAR CHESS. IT'S -13 ADD TWO. [00:40:03] WE'RE ALSO CUTTING ONE PROJECT SPECIALIST OUT OF COMMUNITY DEVELOPMENT. GO OVER HERE, YOU'VE ALREADY TALKED ABOUT THE TWO ACOS. WE DO NEED TO ADD FOUR WATER METER TECHNICIANS FOR THE WATER DEPARTMENT. THIS IS CONTINUING THAT TRANSFER FROM WHAT HAD BEEN A LUBBOCK POWER AND LIGHT DUTY BACK OVER TO US. ONE ELECTRICIAN IN WASTEWATER. LP&L IS ADDING ONE ELECTRICAL ENGINEER POSITION AND THEN, OF COURSE, THE NINE AT THE VETERANS CEMETERY. I'M GOOD WITH THAT. QUESTIONS? STAYING UP ON THE BIG PICTURE ITEMS. STREET MAINTENANCE IS AT THE SAME LEVEL IT WAS IN THE CURRENT YEAR. IT'S 14 AND A HALF MILLION. THAT IS 14 MILLION CASH FROM THE GENERAL FUND AND 500,000 COMING OUT OF GATEWAY. WE'VE GOT STREET MAINTENANCE DETAILS A LITTLE LATER ON. WE'VE HAD SOME GOOD QUESTIONS ABOUT THE MAPS AND SO FORTH, SO WE'LL GET THERE. YOU GENERAL FUND CAPITAL PROGRAM, 78.5 MILLION 27 PROJECTS, 17 OF THOSE PROJECTS ARE CASH FUNDED, ACCOUNTING FOR JUST UNDER 20 MILLION. WE DO NEED TO DO THE NEXT PHASE ON UPLAND. THAT'S UPLAND 82ND TO 98. REMEMBER, THAT THIS IS AN OLD MPO PROJECT. IT'S ACTUALLY WHERE WE HAVE COMBINED REMAINING MPO FUNDING, BUT IT'S STILL SHORT OF HAPPENING. IF IT SITS THE WAY IT IS, IT'S A $12.5 MILLION CO, AND THAT GETS US THAT NEXT MILE. I HOPE IT'LL COME DOWN, BUT I NEED TO PUT IT IN AT FULL COST FOR NOW. THE REMAINING EIGHT PROJECTS THAT TOTAL ALL THIS UP ARE BOND PROJECTS. I KNOW IF YOU'LL LOOK AS WE GO THROUGH THE BUDGET WHEN WE GET TO YOUR CAPITAL LIST, AND SOME OF THEM, YOU'LL SEE 22B OR 24B. THAT'S THE SECRET CODE. IT'S A BOND PROJECT. THESE ARE THOSE NEXT PROJECTS FOR THE BONDS. HERE IN ABOUT 60 DAYS, YOU'RE GOING TO HAVE A BUNCH OF CONTRACTS TO AWARD. THERE'S A BUNCH OF BIG PROJECTS COMING LOOSE. THOSE ARE YOUR BOND PROJECTS. LET'S GO TO THE VEHICLES. WE ALWAYS SPEND A LOT OF MONEY ON VEHICLES. ALL IN, WE'RE BUYING 139 VEHICLES, 122 OF THEM ARE BEING PURCHASED WITH CASH. YOUR TAX NOTES FOUR FOR LUBBOCK FIRE RESCUE. WE'VE GOT EIGHT SOLID WASTE TRUCKS. WE NEED TO REPLACE OUR BIG TUB GRANDER, AND THIS THING IS MASSIVE. IT'S BIG ENOUGH TO PUT A PICKUP TRUCK IN WHEN IT GOES. THE ONE WE'VE GOT IS NO LONGER FUNCTIONAL. ONE GREATER A WHEEL LOADER, AND THEN YOU'VE GOT THOSE TWO ALLEY MAINTENANCE ITEMS. THE 122 THAT ARE CASH FUNDED. YOU SEE THE LIST THERE. THE LARGEST PART OF THAT ARE 47 POLICE VEHICLES. A LOT OF THOSE POLICE VEHICLES ARE 2014. OUR DEPARTMENT, AND I THINK LARGELY BECAUSE THEIR TAKE HOME, THEY DO A GREAT JOB OF GETTING EVERY LAST BIT OUT OF THEM. IT'S MAINLY HOURS MORE THAN MILES, BUT THESE WILL BE HIGH MILES AS WELL. THIS ONE IS NOT JUST GENERAL FUND. THIS IS CITYWIDE. TALK ABOUT OUR HEALTH AND DENTAL. THIS IS WHERE I'M SEEING THE GOOD NEWS IS A SMALL INCREASE RATHER THAN A BIG INCREASE. WE STARTED SETTING THIS BUDGET UP, BEING TOLD TO EXPECT A 10% INCREASE IN THE COST OF MEDICAL INSURANCE. WE'VE CHANGED OUR CONSULTANTS. ELIZABETH LAURA AND HER TEAM HAVE WORKED VERY HARD. YES, IT IS STILL AN INCREASE, BUT IT'S 3.5%. SO THAT ONE'S BEEN WELL MANAGED. I THINK WE ARE SEEING THE BENEFIT OUT OF OUR NEW CONSULTANT THAT'S HELPING US NEGOTIATE THAT. SURE, EVERYBODY SAW THE NEWS. WE ARE BLUE CROSS BLUE SHIELD OF TEXAS, AND THEY DID GO BACK INTO CONTRACT WITH COVENANT. WE WERE QUITE NERVOUS ABOUT THAT, WROTE SOME LETTERS. MAYOR AND I BOTH DID. I'M GLAD TO SEE THAT HAPPEN. YOU SEE THE 3.5% CHANGE ON THERE. COUNCIL, THIS IS SOMETHING AND I DO NOT MEAN FOR THE NEXT INSURANCE YEAR. INSURANCE YEAR IS CALENDAR, SO IT STARTS JANUARY 1. THIS IS SOMETHING WE'VE GOT TO LOOK AT. WE WENT AHEAD THIS TIME AND WE ASKED FOR A HIGH DEDUCTIBLE HEALTH PLAN TO BE PRICED, AND I HAVE IT. THERE IS NOT ENOUGH DIFFERENCE IN IT TO RECOMMEND ANY OF OUR PEOPLE TAKE IT. THE QUESTION IS, WHY? [00:45:04] IT'S NOT BECAUSE THE DESIGN OF THE HIGH DEDUCTIBLE HEALTH PLAN, IT'S BECAUSE WE ARE STILL SO AFFORDABLE ON OUR FULL MEAL PLAN. TODAY IN FISCAL YEAR 25, EMPLOYEE ONLY INSURANCE IS $11 AND 22 CENTS PER PAY PERIOD. THERE'S 26 PAY PERIODS. IT'S ABOUT $25 A MONTH. THE PROPOSED RATE GOES UP BY 39 CENTS, BUT THAT'S BECAUSE WE TRY TO KEEP THOSE RATE CHANGES THE SAME. THEN YOU SEE HOW IT TRICKLES DOWN AS YOU GO TO A SPOUSE CHILDREN FAMILY. THAT'S ONE OF OUR LARGER EXPENSES. I'M SUPER PLEASED THAT WE WERE ABLE TO GET IT DOWN AS FAR AS WE GOT IT DOWN THIS YEAR. BUT IF SOMEONE'S CURIOUS, THIS IS A 30 PLUS MILLION DOLLAR A YEAR COST BACK TO THE CITY. WE NEED TO PROVIDE GOOD HEALTHCARE AND IT NEEDS TO BE AFFORDABLE. LONG TERM, WE'RE GOING TO HAVE TO FIGURE OUT A WAY TO START HAVING OTHER OPTIONS THERE, BUT IT'S GOT TO BE BENEFICIAL TO THE EMPLOYEES TO DO IT AND IT'S NOT THERE YET. THAT'S FUTURE YEAR, BUT JUST KNOW THAT THAT'S ON THE RADAR. UNDERNEATH, YOU SEE THE DENTAL COVERAGE THAT'S ON THERE. ANY OF THE OTHER INSURANCE BENEFITS WE HAVE ARE 100% PAID BY THE EMPLOYEES. I'M GOING TO RUN THROUGH THIS, AND THEN I'M GOING TO TAKE A LITTLE SIDEBAR TO TALK ABOUT THE BUDGET. IN FACT, I DID NOT CALL IT OUT, AND I WILL. YOU SEE THE BOTTOM LINE ON THAT SLIDE, COMPENSATION ADJUSTMENTS, 5.789 MILLION. THAT'S WHAT I'M TALKING ABOUT. MOVE BACK OVER, I LOST IT. THAT 5.789 MILLION TO THE GENERAL FUND IS BROKEN DOWN AS FOLLOWS; 2.5% COLA FOR NON-CIVIL SERVICE EMPLOYEES. REMEMBER, THAT CPI YEAR OVER YEAR IS 2.7, AND MOST OF THE COMPETITIVE SET THAT WE WORK WITH IF THEY'RE NOT THREE, THEY'RE 4% FOR THE YEAR. AT LEAST THAT'S WHAT THEY'RE SAYING PUBLICLY. NOBODY'S VOTED ON IT YET. WE'RE GOING TO CONTINUE OUR EDUCATION ASSISTANCE PROGRAM. THAT IS REALLY TAKEN OFF LIKE A ROCKET. THE DOLLARS ARE BEING SPENT. I CALL IT OUT BECAUSE VERY MUCH APPRECIATE ALL APPROVING THAT FOR US. BUT SECOND NEXT YEAR, IS THE LAST YEAR THAT I'VE GOT ARPA MONEY TO DO THAT. MY HOPE IS WE'LL CONTINUE TO SHOW THE UPTAKE ON THAT. WE'RE IN A BETTER SPOT, AND I CAN ASK FOR MONEY TO KEEP IT GOING. BUT THAT IS ARPA DOLLARS THAT HAS BEEN DEPLOYED TO THE DIRECT BENEFIT OF OUR EMPLOYEES AND OUR WORKFORCE, SO IT'S WORKED WELL. POLICE AND FIRE COMPENSATION ADJUSTMENTS. THESE ARE SLIGHTLY ROUNDED NUMBERS, BUT IT'S 2.1 TO FIRE 2.3 TO POLICE. THAT IS THE EQUIVALENT OF 4%. THIS IS NOT MEET AND CONFER, SO I OWE YOU AN UPDATE, AND WE'RE NOW IN AN APPROPRIATE PLACE THAT I CAN DO THAT ON WHERE WE STAND WITH MEET AND CONFER. BOTH GROUPS, THE FIRE ASSOCIATION, THE POLICE ASSOCIATION, THE MANAGEMENT GROUPS IN BOTH CASES, WE HAVE CONTINUED TO WORK AND WORK THROUGH THAT, AND WE HAVE MADE A LOT OF PROGRESS. THE SIMPLE FACT IS, WE CAN'T AFFORD IT RIGHT NOW. WE CAN'T MAKE ENOUGH OF AN ADJUSTMENT, AND THEY'RE DIFFERENT BECAUSE THE DEPARTMENTS HAVE DIFFERENT NEEDS. WE CAN'T GET THERE WITH WHAT'S AVAILABLE TO US. IN THE CASE OF THE FIRE ASSOCIATION, WE HAVE AGREED TO SUSPEND NEGOTIATIONS. THAT IS NOT A BUST, THAT IS NOT A BLOW UP OF ANY FORM. ALL PARTIES HAVE BEEN SITTING AMICABLY, VERY MUCH GOOD FAITH EFFORTS, AND TRULY, WE'VE GOT DRAFTED CONTRACTS THAT WILL BE TREMENDOUSLY TO THE BENEFIT OF THOSE MEMBERS, THE DEPARTMENT, AND THE COMMUNITY AT LARGE, BUT WE'RE NOT THERE. THAT ONE HAS SUSPENDED. WE'RE GOING TO PICK BACK UP BETWEEN OCTOBER AND NOVEMBER, REALLY TO SEE WHERE WE STAND IN TERMS OF THE FISCAL IMPACT. WHILE THAT ONE IS SUSPENDED, IT MEANS WHAT IT SAYS, IS A SIMPLE WAY. THERE GROUND RULES BETWEEN THEM AND US. ALL THAT'S OFF UNTIL WE SIT BACK DOWN AGAIN. POLICE. THAT GROUP HAS ALSO DONE TREMENDOUS WORK, BUT WE'RE NOT TO WHERE WE CAN ACCOMPLISH WHAT WE NEED TO ACCOMPLISH OR FUND WITH THAT AGREEMENT AT THIS POINT IN TIME. THE 4% EQUIVALENT THAT'S BEEN OFFERED IS TO BE HANDLED THE SAME WAY WE TRADITIONALLY DO IT. THAT IS EACH RESPECTIVE CHIEF WORKING WITH THEIR FOLKS TO FIGURE OUT HOW BEST TO DEPLOY THAT. WILL IT BE FLAT RATE? WILL IT BE TARGETED TOWARDS ONE END OR THE OTHER? WILL IT GO TOWARDS CERTIFICATION AND INCENTIVE? [00:50:01] THEY'RE WORKING ON ALL OF THAT RIGHT NOW. IT'LL BE DONE WELL BEFORE WE FINISH THE BUDGET. WE ARE STILL WORKING WITH THE POLICE ASSOCIATION ON AN ENTIRELY NON-MONETARY MEET AND CONFER AGREEMENT THAT WOULD BE FOCUSED VERY EXCLUSIVELY ON RECRUITING AND RETENTION. WE KNOW THAT'S THE BIG THING WE NEED TO GET ACROSS WITH PD AND REALLY KUDOS TO ALL OF THEM, BUT ESPECIALLY TO THE POLICE ASSOCIATION WORKING WITH US BECAUSE THAT'S BEEN THEIR CONSISTENT MESSAGE. IT'S BEEN OURS. THAT ONE IS STILL IN NEGOTIATION, BUT THESE DOLLARS ARE NOT PART OF IT. DOES THAT MAKE SENSE? REMEMBER, I SAID NON-MONETARY AGREEMENT. MAYOR. >> AGAIN, AT THIS POINT, I LIKE TO COMMEND YOU FOR ALL YOUR HARD WORK ON THAT. WE WISH WE COULD GET SOME PLACE WITH THAT THIS YEAR, BUT WE ALSO APPRECIATE OUR PUBLIC SAFETY PEOPLE WORKING WITH US, REALIZING THE CONSTRAINTS WE'RE UNDER AND WORKING WITH US ON THAT. GOING BACK UP TO THE COST OF LIVING ADJUSTMENTS ON THE NON-CIVIL SERVICE EMPLOYEES, I'VE CALCULATED THAT. THAT IS ABOUT 1.38 MILLION. IS THAT ABOUT WHAT YOU HAVE? >> ROUGHLY, YES. >> THANK YOU. ANY OTHER QUESTIONS? >> JUST A QUICK UPDATE. THESE ARE OTHER PROGRAMS THE COUNCIL'S APPROVED FOR US OVER THE YEARS. WE LIKE TO COME BACK AND REPORT. CDL APPRENTICE PROGRAM CONTINUES TO BE USED, AND THAT'S BOTH APPRENTICE TRAINING, MEANING SOMEBODY COMING IN THAT'S NEVER DONE THIS, AS WELL AS EXISTING EMPLOYEES WHO CAN IMPROVE THEIR ABILITY TO PROMOTE OR TO TRANSFER BY GETTING A CDL. SUMMER FIELD AND NOW SUMMER OFFICE. THE SUMMER FIELD PROGRAM IS A YEAR OLDER THAN THE SUMMER OFFICE PROGRAM IS. WE HAVE JUST WRAPPED THAT UP AGAIN. SUCCESSFUL YEAR. WE'VE HIRED SEVERAL OF THEM, I BELIEVE, SEVEN. MOST OF THEM INTO ENTERPRISE FUNDS BECAUSE THEY'RE NOT UNDER A HIRING FREEZE, BUT THAT PROGRAM IS FUN, AND IT'S WORKING WELL. EVEN IF WE DON'T END UP HIRING THEM, NUMBER 1, THEY GET PAID FOR A PART TIME JOB THROUGH THE SUMMER. NUMBER 2, I HOPE WE'RE SHOWING THESE YOUNG PEOPLE, THERE'S A LOT OF OPPORTUNITIES OUT THERE. AT THE END OF THE DAY, I WANT THEIR OPPORTUNITY TO BE HERE, THAT SELFISH, BUT WE'LL LEAVE IT OUT THERE. THE FLEX WORK SCHEDULES. WE'VE HAD THAT FOREVER IN THE FIELD. WE DO IT NOW IN THE OFFICE, SUBJECT TO THE NEEDS OF THE DEPARTMENT. I GET LOTS OF GOOD REPORTS ON THAT. IN FACT, SOME OF YOU MAY OCCASIONALLY GET AN EMAIL. IF YOU'LL READ THE SIGNATURE BLOCK, THEY'LL TELL YOU WHAT THEIR SCHEDULE IS. QUESTIONS ON THAT ONE? WE'RE READY FOR THE REALLY, REALLY BIG PICTURE STUFF NOW? THESE WILL ALL START TYING BACK TOGETHER. DRAW YOUR ATTENTION TO THE COLUMN THAT SAYS, BUDGET '24-'25. THAT'S THE CURRENT BUDGET. AS YOU LOOK AT THE CHANGE FROM BUDGET, THAT'S WHAT IT'S COMPARED TO. THAT FIRST LIGHT BLUE LINE IN THE MIDDLE, THE ALL IN GENERAL FUND WAS 314,360,00 CURRENT YEAR. THAT'S THE REVENUE SIDE. WE'RE NOT HITTING IT BECAUSE OF THE $5 MILLION SHORTFALL IN SALES TAX, BUT THAT'S REVENUE BUDGET. COLUMN TO THE RIGHT, THAT'S THE BUDGET WE'RE DOING TODAY. BOTTOM LINE ON IT, 316.6 MILLION 7/10 OF A PERCENT, 2.3 MILLION. THE FULL VALUE OF THAT REQUESTED TAX INCREASE IS ALREADY FACTORED IN HERE. IT'S NOT BACK ON TOP OF IT. THE TAX INCREASE IS ROUGHLY FIVE MILLION TIME YOU ADD THE NEW PROPERTY TO IT. IT'S 3.55 IS THE ACTUAL INCREASE. WE'RE STILL COMING IN UNDER THAT. INTERNAL SERVICE FUNDS. THIS IS WHERE YOU HAVE INFORMATION TECHNOLOGY AND ALL THOSE 97.8-201, YOUR VARIOUS ENTERPRISE FUNDS. AIRPORT STATISTICALLY IS FLAT, 884,000 CHANGE. LP&L BUDGET IS SIX MILLION LESS THAN IT WAS THE PRIOR. STORMWATER, ABOUT TWO MILLION LESS. WATER/WASTEWATER SLIGHT INCREASE, ABOUT 5.5 MILLION THAT'S COMBINED WHEN WE DO THEIR DEPARTMENTS. YOU'LL SEE WHERE EACH OF THOSE ARE. THEN THE OTHER ENTERPRISE FUNDS, THE LITTLE ONES THAT ARE ALL LUMPED TOGETHER, YOU SEE THAT CHANGE THERE 148,000. ALL IN THE ENTERPRISE FUNDS ARE DOWN ABOUT 1.6 MILLION. SPECIAL REVENUE DECLINING BY 9% OR 6.5 MILLION, AND THEN DEBT SERVICE COMING DOWN BY 24.7 MILLION. [00:55:05] YOU'VE GOT SLIDES THAT HAVE ALL THE DETAILS ON THOSE. ALL IN YEAR OVER YEAR, EVERYTHING FOR THE CITY, CAPITAL, THE WHOLE NINE YARDS. THE '25 BUDGET IS 981.2, AND THE '26 BUDGET, THE NEW BUDGET, IS 953.898, BASICALLY 954. $27.4 MILLION ALL IN DROP. QUESTIONS ON THAT ONE? YOU'RE GOOD? HERE'S HOW IT BREAKS OUT. YOU GOT A PIE CHART ON THE RIGHT. YOU'VE GOT THREE YEARS IN THE BAR CHART ON THE LEFT. OBVIOUS CHANGE THAT JUMPS OUT, LUBBOCK POWER AND LIGHT THREE YEARS AGO AT 287 MILLION, NEW BUDGET AT A 179 MILLION. TWO EIGHTY-SEVEN THAT WAS THE LAST YEAR THAT THEY WERE GETTING OUT OF THE BUSINESS OF BUYING AND SELLING POWER. THE PLAN THAT THEY'VE HAD IN PLACE TO PULL THOSE EXPENSES DOWN IS WORKING. THIS IS THE SAME THING, BUT NOW WE'RE ON THE EXPENSE SIDE. AGAIN, USE THE '25 COLUMN. THAT'S THE COMPARISON TO THE '26 COLUMN. THIS IS BY MAJOR OPERATIONAL GROUPS. ADMINISTRATIVE SERVICES YEAR OVER YEAR IS DOWN 3%, AND THAT'S ABOUT 735,000. CULTURE AND REC, THIS INCLUDES PARKS, IT'S UP 3.7 OR ABOUT 729,000. BUT REMEMBER, JUST THAT MOWING CONTRACT WAS 921. THERE'S STILL BEEN REDUCTIONS IN THERE. DEVELOPMENT SERVICES STATISTICALLY IS FLAT, 1/10 TO 1%. PUBLIC WORKS AND SOLID WASTE DOWN ABOUT 2.6 MILLION OR 6.5%. PUBLIC SAFETY IS YOUR ONLY INCREASE. THAT'S 3.7% OR 6.5 MILLION, AND THEN YOUR OTHER VARIOUS EXPENSES THAT COME IN, TRANSFERS, ALL THAT FUN STUFF, DECREASED BY 3.6 OR 1.5, TWO TOTAL. THIS INCLUDES THE REQUESTED COMPENSATION NUMBERS. THE GENERAL FUND WENT FROM 314 MILLION TO 316 MILLION FOR A NET CHANGE OF 2.3. REMEMBER THE REQUESTED TAX INCREASE ALONE IS 3.5. INTERNAL SERVICE FUNDS. THE REST OF THESE PRETTY MUCH ARE GOING TO MATCH THE EXPENDITURE OR THE REVENUES JUST LIKE THIS ONE DID. YOU'RE BACK TO YOUR BOTTOM LINE TOTALS, 969 MILLION TO 943 REDUCTION OF 26 MILLION. DIFFERENCES OR CAPITAL, WHAT'S BEING PUT IN A CAPITAL PROJECT. QUESTIONS ON THAT ONE? SOME OF THESE WILL MAKE YOUR EYES CROSS IF YOU LOOK TOO CLOSE. HERE'S THOSE SAME EXPENSES NOW. TO THE RIGHT IS THE CHART FOR THE YEAR, TO THE LEFT IS THE THREE-YEAR RUNNING CHANGE. READY TO DO RESERVES? GENERAL FUND RESERVE. TOP LINE, TOP ROW. GO ALL THE WAY OVER TO WHERE IT SAYS, FY '25 YEAR END FORECASTED AVAILABLE RESERVES. THAT NUMBER IS 22,033,000. THE NUMBER RIGHT AHEAD OF IT, YOUR POLICY LEVEL. THAT'S WHAT BY POLICY WE HAVE TO HOLD, SO IT'S NOT AVAILABLE. THAT'S 56.2. THEN JUMP ACROSS IT AND GO ONE TO THE RIGHT PROJECTED CHANGE TO AVAILABLE RESERVES. THAT IS THE UTILIZATION. THAT'S THE DOLLARS OUT OF THAT RESERVE THAT ARE BUILT INTO THIS BUDGET TO SPEND FOR THE BENEFIT OF OUR COMMUNITY. WITH THESE NUMBERS, WE WOULD END NEXT YEAR AT 10.2. MY FAVORITE NUMBER IS 12 TO PUT IN THAT BOX. I'LL GO WITH 10.2. I'M OKAY THERE. YOU NOW SEE THEN THAT SAME SET OF CALCULATIONS FOR EVERY FUND THAT WE'VE GOT. AIRPORT, WHICH CONTINUES TO BE VERY STRONG, THAT'S BECAUSE SO MUCH CAPITAL HAS BEEN ABLE TO BE SHIFTED TO [01:00:01] THEIR VERSION OF ARPA OR TO WHAT THEY CALL THE BIL, THE BUILD MONEY. WATER/WASTEWATER, CIVIC CENTER STORMWATER CARRIES ALL THE WAY DOWN, FLEET SQUARES UP AT THE END OF THE YEAR. IT SHOWS AS A NEGATIVE EVERY TIME YOU ROLL THROUGH AND THEN THE CHARGES THROUGHOUT THE YEAR ARE COMING BACK INTO THAT. THE HEALTH FUND IS SHOWING A NEGATIVE AVAILABLE. THE POLICY LEVEL IS JUST RIGHT AT FULLY FUNDED, SO WE'RE OKAY. I THINK THE REDUCTION IN THE INCREASE AND I SOUND LIKE THE FEDERAL GOVERNMENT WHEN I SAY THAT. BUT THE REDUCTION IN THE INCREASED COST IS GOING TO HELP THAT HEALTH FUND AS IT GOES OUT. THE IT FUND, WE'RE BEING ABLE TO PUT MONEY THERE TO USE, AND THAT'S REALLY GOING TO END UP HELPING WITH A BIG EXPANSION TO OUR RADIO SYSTEM THAT WE'RE DOING WITHOUT TAKING ON ANY ADDITIONAL DOLLARS OR ANY ADDITIONAL DEBT. CARRY THAT ALL THE WAY DOWN INTO YOUR SPECIAL REVENUE FUNDS. GATEWAY IS ALWAYS A QUESTION. GATEWAY IS REQUIRED TO HAVE 5.7 MILLION IN IT. YOU'VE GOT AN ADDITIONAL 1.63. WE'RE GOING TO USE 139, SEE HOW IT CARRIES OUT ALL THE WAY TO THE BOTTOM LINE. FISCAL YEAR '25, CURRENT YEAR, WE PREDICT TO HAVE AVAILABLE RESERVES FROM ALL SOURCES OF 85.9 MILLION. THAT'S THE VERY BOTTOM ROW. WITH THE NET CHANGES TO IT, WE'RE GOING TO COME DOWN TO ABOUT 75.9. AGAIN, THE BIGGEST UTILIZATION OF THAT IS IN THE GENERAL FUND. IT'S THAT 11.7. WHEN YOU'RE ASKED, HOW MUCH CASH DOES THE CITY HAVE, THERE'S YOUR ANSWER. >> THAT IS INCLUDED IN THE CASH WE HAVE, BUT IT'S NOT REALLY AVAILABLE FOR US TO USE WITHOUT NEGATIVELY AFFECTING OUR RATING OR SOMETHING ELSE. >> CORRECT. THE WAY TO LOOK AT THAT ONE, THE COLUMN THAT SAYS POLICY LEVEL RESERVES. THAT'S NOT AVAILABLE. THAT'S LOCKED. THE NEXT COLUMN TO THE RIGHT [OVERLAPPING] >> SO TO SPEAK, IN A LOCK BOX. >> IN A LOCK BOX. >> YEAH. >> CONTRIBUTING GREATLY TO YOUR INTEREST EARNINGS, BUT YES, IN A LOCK BOX. THE COLUMN TO THE RIGHT IS THE AVAILABLE RESERVES. THAT TOTAL IS 85.9 ALL IN, BUT YOU SPEND IT BY FUND. THESE ARE NOT FUNGIBLE TO WHERE WE CAN MOVE THEM BACK AND FORTH. >> IF I GO BACK UP TO YOUR VERY TOP LINE AND IT SAYS, USE OF AVAILABLE RESERVES IN FISCAL YEAR 2025 FOR OUR BUDGET WAS 18 MILLION, RIGHT? >> CORRECT. >> THIS YEAR, WE'RE PROPOSING 12 MILLION. IS THAT CORRECT? >> CORRECT. >> WHAT ACCOUNTS FOR THE BIG DIFFERENCE? >> BESIDES THE INTEREST EARNINGS, JUST WHEN YOU FULLY FUND THE REVENUE BUDGET, YOU SEE A MUCH BIGGER BENEFIT AS OUR DEPARTMENT HEADS MANAGE THEIR BUDGETS. REDUCED EXPENSES GO BACK INTO THAT. THAT'S YOU'RE NOT GOING TO ADD MUCH IN THIS YEAR BECAUSE WE'RE FIVE MILLION SHORT TO START WITH. ANY OTHER QUESTIONS? THE DREADED T WORD PROPERTY TAX SUMMARIES. HERE IS THE TOP 14 LARGE CITIES IN THE TAX RATE. PLEASE ALLOW ME NOW TO ADD MY DISCLAIMER. I STILL CONTEND THE RATE IS NOT WHAT WE NEED TO FOCUS ON. WHAT WE NEED TO FOCUS ON IS THE TAX BILL. WHAT DO PEOPLE WRITE A CHECK TO THE CITY FOR? RATES EASIER BECAUSE IT'S A NUMBER. BUT THERE'S A LOT OF THINGS TO GO INTO THE RATE THAT DON'T NECESSARILY TELL YOU WHAT THE BILL IS. WHAT'S THE VALUE OF THE AVERAGE HOUSE? WHAT'S THE VALUE OF THE FROZEN LEVIES? ALL OF THOSE THINGS. I'M GOING TO GET IT DOWN TO WHERE WE TALK ABOUT THE TAX BILL. BUT THIS IS A QUESTION I'M CONSTANTLY ASKED. HERE IS THE ANSWER TO THAT. THERE'S 14 COMPARATIVE CITIES. NOW, THREE OF THESE CITIES DON'T SHOW UP ON THE NEXT SLIDES JUST BECAUSE WE CAN'T GET THE DATA FROM THEM JUST YET. BUT HERE'S THE 14, HERE'S THE TAX RATE. IT'S ALWAYS INTERESTING TO ME, MIDLAND IS LOW. LOOK AT HOW ABILENE IS. WE TALK ABOUT OUR COMPETITIVE SET. [01:05:02] THERE'S THE SPREAD. WHAT'S REALLY GOING TO MATTER IS THE REVENUE THAT'S GENERATED OFF OF THIS AND WHAT THAT RESULTS IN THE BILL. HERE I'M DOWN TO THE 11. THIS IS MAINTENANCE AND OPERATIONS REVENUE PER CAPITA. YOU TAKE THAT TOTAL TAX LEVY FOR MAINTENANCE AND OPERATIONS DIVIDED BY YOUR PEOPLE. THAT'S WHAT YOU'VE GOT. YOU SEE WE STAY DOWN AT THE LOWER END OF THAT SCALE. I WOULD ALSO CONTEND THAT DEBT COMES INTO THIS, AND I'VE GOT THOSE SLIDES LATER, BUT HERE'S WHERE THAT LINES UP. HERE'S SALES TAX PER CAPITA. YOU SEE US AT 384, ABILENE IS AT 387, MIDLAND IS AT 345, RELATIVELY THE SAME. REMEMBER THAT LUBBOCK IS UNIQUE AND THAT WE GIVE UP A PORTION OF THE LOCAL SALES TAX, OR WE DID GIVE IT UP YEARS AGO, AND IT GOES TO THE COUNTY. WE'D BE EVEN BETTER. I'VE SEEN TO THE LOCAL SALES TAX IS 2%. COUNTY GETS A HALF, LEDA GETS AN EIGHTH, THE CITY GETS ONE AND THREE EIGHTHS. MOST OF THESE CITIES DO GIVE UP SOMETHING TO THEIR ECONOMIC DEVELOPMENT. THAT IS TRUE. THEY DO NOT GIVE UP TO THEIR COUNTIES. >> WHEN PEOPLE WERE TO LOOK AT THESE FIGURES AND SAY, WELL, HOW IS IT IN THE WORLD THAT ABILENE BRINGS IN MORE THAN WE DO? IT'S BECAUSE THEY CAPTURE ALMOST ALL OF THE 2% THEY'RE ALLOWED TO CAPTURE. >> CORRECT. >> WE GAVE IT UP. WE WON'T GO BACK AND TRY TO FIGURE OUT WHEN THAT WAS OR WHO DID THAT, BUT THAT'S [OVERLAPPING] >> THAT'S THE IMMUTABLE DECISION. WE LIVE WITH IT. COMBINE THOSE TWO, REVENUE PER CAPITA, SALES TAX PER CAPITA. SALES TAX IS THE LARGEST SOURCE TO THE GENERAL FUND, PROPERTY TAX IS THE SECOND. COMBINE THEM, DIVIDE THEM BY THE NUMBER OF PEOPLE, THIS IS THE ANSWER. THERE WE GO. YOU TAKE THE DIFFERENCE BETWEEN SAY, ABILENE AT 771, LUBBOCK AT 734. IT'S ABOUT $9.5 MILLION. IF YOU EXTENDED THAT BACK TO LUBBOCK. I'M SORRY, LET'S COMPARE THEM WELL. LUBBOCK TO ABILENE, $71 DIFFERENCE IS 18.9, GET MY FACTS STRAIGHT. 18.9 MILLION TO THEIR GENERAL FUND. >> NOT ARGUING TO CHANGE, JUST WANT TO BE SURE WE UNDERSTAND WHERE THAT STANDS. IF YOU COMPARED, IF YOU TOOK THE $212 TO MIDLAND AND EXTENDED IT BACK, MIDLAND HAS A LOWER TAX RATE. THEY HAVE A HIGHER AVERAGE VALUE THAT THEY'RE COLLECTING AGAINST. ANY QUESTIONS ON THESE? AGAIN, THESE ARE ALL IN YOUR PACKET AND ALL IN THE ELECTRONIC FILE. STATE REQUIRED LANGUAGE. I HAVE TO READ THIS. I'LL EXPLAIN THE DIFFERENCES WHEN WE GET DONE WITH IT, BUT HERE IT IS. SO THIS BUDGET WILL RAISE MORE TOTAL PROPERTY TAX THAN LAST YEAR BY 4,572,395 OR 3.75%. OF THAT AMOUNT, 01,957,555 IS TAX REVENUE FROM NEW PROPERTY ADDED TO THE ROLL THIS YEAR. SEVERAL SLIDES BACK. I TOLD YOU THAT NUMBER WAS $1.5 MILLION. THE DIFFERENCE IS HOW IT ROLLS INTO THE I&S FUND ALSO. IF YOU CARRY DOWN, AND WE'RE WAITING FOR THE THIRD SET OF CALCULATIONS FROM LCAT, BUT THEY'LL BE HERE QUICK. NO NEW REVENUE IS 46.6749, VOTER APPROVAL RATES 48.7920. THAT IS BECAUSE OF THE NEXT LINE. YOU'VE GOT THE UNUSED INCREMENT AT 1.3034. ADD THOSE UP TO 497260. YOUR PROPOSED RATE, BOTH COMPONENTS, INS M&O IS 47.9365. GO TO THE NEXT TWO. I TOLD YOU THAT THE TOTAL VALUES DIDN'T CHANGE MUCH BETWEEN PRELIMINARY AND CERTIFIED, AND THEY REALLY DIDN'T. [01:10:01] 28.7 BILLION WAS THE NUMBER WE WERE GIVEN TO START. WE LANDED AT 28,700,257,110. SO $257,000 CHANGE WAS IT. THE REASON IT IMPACTED HOW THIS BUDGET IS PREPARED, THOUGH WAS THAT ADDITIONAL 200 MILLION THAT CAME OUT OF NEW PROPERTY AND WENT OVER INTO THE TIFS. SO YOU SEE THE OVER-65 EXEMPTION LEVY, AND THAT HAS CHANGED A LITTLE BIT. THE CERTIFIED NET TAXABLE VALUE IS 28.5 BILLION OR A 2.5% INCREASE OVER THE PRIOR YEAR? THESE ARE ALL STATE-REQUIRED. THE NUMBERS THAT ARE FILLED IN AND ALL OF YOUR OTHER TABLES ARE YOUR ACTUALS. HOW DOES THAT BREAK DOWN? 4.572 IS THAT CHANGE NUMBER. 5.4 GOES OVER TO M&O, 831 IS OUT OF DEBT. THAT'S NOT THE 1.2 NUMBER I GAVE YOU EARLIER, BUT THAT'S BECAUSE YOU HAVE AN ADDITION AND A SUBTRACTION. IT ALL COMES BACK OUT AT THE END. FOR EXISTING PROPERTY, YOU SEE THE TWO NUMBERS. TWO MILLION OF THAT CHANGE IS EXISTING, 1.5 IS NEW. B OVER ON THE DEBT SIDE. THAT'S A NEGATIVE AND THEREFORE, EXISTING WENT DOWN 586-439. THE BOTTOM, YOU SEE WHERE THAT OVER-65 DECREASE CAME IN. CLEAR AS MUD. LET'S DO IT THIS WAY. THE PROPOSED BUDGET, AN AVERAGE THE MYTHICAL SINGLE-FAMILY RESIDENTIAL HOME SEES A $31.45 CENT INCREASE. SO THE LITTLE HOUSE ON THE LEFT, THAT'S THE CURRENT YEAR TO THE RIGHT, WE TAKE IT OVER TO THE NEW YEAR. REMEMBER THE VALUE INCREASE WAS 1.07. OVER HERE. LAST YEAR, THE SINGLE-FAMILY HOME PAID $1,045.22. WITH THE PROPOSED TAX INCREASE, THEY WILL PAY $176.66. APPRAISAL GROWTH CHANGE, TAX RATE CHANGE. BOTTOM LINE IS WHAT THE CHANGE WAS BETWEEN THE TWO YEARS, 222,230 VERSUS 224,602. THE NET CHANGE IS $31.45. WE'LL GET THAT ROW OF XS FILLED BACK IN. IT'S $31.45. ANY QUESTIONS ON THAT ONE? EVERYBODY READY FOR DEBT AND INVESTMENTS THEN. >> ANYBODY WANT TO TAKE A BREAK FOR A MINUTE? LET'S TAKE A 10 MINUTE BREAK. WE'RE BACK FROM OUR RECESS. WE'LL CONTINUE RIGHT ALONG GOING INTO DEBT AND INVESTMENTS. MR. CITY MANAGER? >> EVERYBODY'S BACK. I WOULD NOTE WE'RE ON 41 OF 98, BUT LET'S START GOING PRETTY QUICK HERE IN A MINUTE. WE DON'T WANT TO KEEP COUNCILMAN COLLINS TILL HE HAS HIS NEXT MILESTONE BIRTHDAY. >> WE WERE GOING TO TALK A LITTLE BIT ABOUT THE DIFFERENCE IN THE USE OF RESERVES. >> THANK YOU, MAYOR. THERE WE GO. ONE OF THE QUESTIONS, MAYOR ASKED IT EARLIER, AND I DID NOT ANSWER THE QUESTION THAT HE ASKED. I ANSWERED SOMETHING DIFFERENT. SECOND COLUMN TO THE RIGHT, USE OF AVAILABLE RESERVES IN FISCAL YEAR 2025 BUDGET, TOP ROW GENERAL FUND, $17.9 MILLION. THIS YEAR, IT'S 11.7. BUT REMEMBER, COUNCIL, WE'VE MADE ONE MAJOR MID-YEAR CHANGE THAT WASN'T ORIGINALLY BUDGETED, AND THAT WAS THE PURCHASE OF THE GOTAKE LIBRARY. SO THAT WAS BETTER THAN $3,000,000, AND IT'S INCLUDED IN THAT 17.9. THEN EARLIER, I HAD REFERENCED THAT TAX NOTE SHIFT OF ABOUT 2.2 IN THERE. THAT'S REALLY THE DIFFERENCE AND IT'S REALLY ONE OF THE REASONS I LIKE TO KEEP SOMETHING ON HAND. AGAIN, 12 IS MY FAVORITE NUMBER, BUT 10.2 WILL WORK. BUT YOU HAVE THE OPPORTUNITY TO DO THOSE TYPES OF THINGS WHEN YOU HAVE SOME AVAILABLE MONEY. [01:15:09] STUDENT DEBT AND INVESTMENTS. WE'RE ALMOST THROUGH THE BORING STUFF. THE REALLY FUN STUFF WILL HAPPEN HERE IN A LITTLE BIT. THIS IS TOTAL GOVERNMENTAL DEBT. THIS IS TOTAL. THIS IS NOT PER CAPITA. YOUR TRUE GOVERNMENTAL DEBT IN LUBBOCK IS 352 MILLION. YOU SEE THOSE TO THE SMALLER SIDE OF THE SCALE, YOU SEE THOSE TO THE BIGGER SIDE OF THE SCALE. THAT NUMBER IS GOING TO, AND I'LL SHOW YOU THE YEAR-OVER-YEAR CHANGE IN. IT'S GOING TO INCREASE AS WE CONTINUE TO DO THE DRAWDOWNS ON THE 303 MILLION BONDS, BUT IT'S PAIRED. IT'S NEVER GOING UP EACH YEAR BY THE TOTAL AMOUNT BECAUSE YOU'RE HAVING PAYOFF AS WELL. HERE IS THE NEXT ONE, THIS IS THAT SAME NUMBER, BUT CONVERTED TO PER CAPITA. YOU SEE THAT OUT OF THIS COMPETITIVE SET, WE'RE NEXT TO THE LOWEST. THAT BLUE BAR THAT'S JUST A HAIR UNDER 2000, THAT'S YOUR MID LINE ACROSS THERE. YOU CAN SEE TO THE RIGHT, YOU'VE GOT SOME BIGGER NUMBERS, AND THEN WALK IT BACK OVER TO WHERE WE SIT TODAY. THESE ARE ALL BASED ON AUDITS EACH YEAR. THIS WILL SHOW US OUR YEAR-OVER-YEAR CHANGE. WE'LL START UP THERE ON GENERAL GOVERNMENT. CARRY ACROSS HERE. YOU CAN SEE THE $33.3 MILLION YEAR-OVER-YEAR CHANGE. ALSO, IN GENERAL GOVERNMENT, YOU'VE GOT THE CIVIC CENTERS. YOU SEE A $442,000 DECREASE, SO YOUR NET CHANGE IS 32.9. COME BACK DOWN. WE GET INTO THE USER FEE-SUPPORTED. YOU'VE GOT SOLID WASTE WHICH PAYS FOR ITSELF THROUGH ITS RATES. $5 MILLION DECREASE, THAT'LL GO UP HERE WHEN WE ISSUE THE FINAL PART OF THE TRANSFER STATION, BUT IT'S COMING DOWN LIKE IT'S SUPPOSED TO. WATER WASTEWATER, YEAR-OVER-YEAR CHANGE OF 29. THAT'S LESS THAN THE AMOUNT THOUGH OF THE DEBT THAT WE ISSUED FOR THE FIRST HALF OF WEST LEVAQUWATER EXPANSION. IT'S A SECOND HALF COMING UP, BUT THAT WAS THAT. STORMWATER CONTINUES TO PAY DOWN. IT'S NOT ADDING ANYTHING TO ITSELF, AND SIDEBAR. THERE'S A PRETTY GOOD PIECE OF THAT $88 MILLION THAT'S OUTSTANDING THAT IS FINANCED AT 0% THROUGH A TEXAS WATER DEVELOPMENT BOARD DEAL, WE DID A NUMBER OF YEARS AGO. AIRPORT SLIGHT INCREASE. CITY BUS HAS NOW ZEROED OUT. CEMETERY. YOU SEE THE INCREASE THERE? THAT'S FOR YOUR IRRIGATION AND ALL OF THAT. LP AND L'S DEBT CONTINUES TO PAY DOWN IN VERY BIG NUMBERS. YOU'VE GOT THE INTERNAL SERVICE FUNDS UP SLIGHTLY. GATEWAY IS CONTINUING TO PAY DOWN. REMEMBER, GATEWAY WAS ORIGINALLY DESIGNED ENTIRELY AS A DEBT SERVICE FUND. WE'RE ABLE TO DO A LITTLE MORE THAN THAT WITH IT NOW, BUT YOU'RE SEEING THAT PAY DOWN. THEN THE ACCUMULATION OF THE OTHER SPECIAL REVENUE FUNDS DOWN BY ABOUT 4 MILLION. YOU TAKE THE 32.9 AT THE TOP, THE -25.9 AT THE BOTTOM, $7 MILLION YEAR OVER YEAR CHANGE. HERE'S ONE THOUGH THAT I THINK IS PRETTY IMPORTANT. YOU TAKE THE DEBT BY FUND AND YOU LOOK AT IT THIS WAY. THE CHART SHOWS YOU THE INTERNAL FUND AND WHERE THEY STAND. LP&L IS AT ABOUT 700 MILLION. YOUR SECOND LARGEST IS WATER AND WASTEWATER, 464, GENERAL FUND 403, AND THEN YOU SEE HOW THEY ALL TRICKLE DOWN FROM THAT. THAT FIRST PIE CHART THOUGH. JUST UNDER 22% OF YOUR DEBT IS ACTUALLY TAX-SUPPORTED DEBT. ADJUST OVER 78% THEN IS USER FEE SUPPORTED DEBT. THAT RATIO WAS NOT QUITE THAT FAVORABLE WHEN WE STARTED REPORTING IT IN THIS MANNER NINE YEARS AGO. WHAT'S CHANGED? WE'VE BEEN PRETTY ASTUTE WITH WHAT A COUNCIL DID OR DID NOT ISSUE FOR. BUT NUMBER 2, SINCE WE'VE BEEN ABLE TO GET WATER AND WASTEWATER AND SOME OF THE OTHER FUNDS TO STAND ON THEIR OWN, WE NO LONGER COSIGN THEIR DEBT. IF WE COSIGN IT THROUGH THE GENERAL FUND, IT'S GOING TO BE GOVERNMENTAL, EVEN IF IT'S NEVER PAID BY TAXES. A LOT OF ALL HAVE SEEN THAT TEXAS STATE CONTROLLER'S REPORT THAT SAYS LUBBOCK GOT A VERY LARGE GENERAL OBLIGATION DEBT. ONLY THE 400 OF THAT IS TRULY TAX PAID. IT'S THE REMNANTS OF EVERYTHING THAT WE CO SIGNED WITH THE GENERAL FUND. [01:20:04] WE DON'T COSIGN ANYMORE. LP&L'S DEBT STANDS ON ITS OWN, WATER WASTEWATER STANDS ON ITS OWN, ALL THAT. PLUS, EVERY TIME WE GET THE CHANCE TO DO A REFUNDING OR WHAT THE NORMAL WORLD CALLS A REFINANCING, EVERY TIME WE DO THAT, AND IT'S TRULY SHOULD BE REVENUE DEBT, WE REFUND IT AS REVENUE DEBT, AND THAT TAX GUARANTEE GOES AWAY FROM IT. THAT METRICS GO IN THE DIRECTION IT NEEDS TO GO. I LIKE THAT ONE. THE ONE ON THE RIGHT IS THE BAR CHART TURNED INTO A BAR CHART. ANY QUESTIONS ON THAT? >> WHEN WE SEE THIS 403 BREAKDOWN. >> CAN YOU TURN ON YOUR MIC, MR. COLLINS? >> I'M SORRY. NOT TODAY, BUT AT SOME POINT, WILL WE SEE THIS 403 IN A BREAKDOWN, ROADS, ETC. >> IT'S NOT IN ANY OF THE BUDGET PRESENTATIONS, BUT WE'LL BE GLAD TO PULL IT. THE CHALLENGE IS GOING TO BE SOME OF THE OLD STUFF THAT GOT REFUNDED AND WHAT WAS IT ORIGINALLY FOR. BUT WE CAN ABSOLUTELY LINE IT OUT. I'LL SHOW YOU BY SERIES WHAT THEY ARE. >> WELL, AN OLD FUND CATEGORY WOULD BE JUST FINE. LET SAY THIS MUCH IS OLD FUNDS. MAKE IT SIMPLE. THANK YOU. >> DID YOU GET THAT? GOOD. THANK YOU. INVESTMENT EARNINGS. LIKE WE SAID, THEY'RE DOING PRETTY GOOD. WE'RE ABOVE THE BENCHMARK. YOUR ACTUAL EARNINGS CONTINUE TO BE REALLY GOOD. THAT'S BEEN OUR BIG SHINING STAR FOR THE YEAR. I'M GOING TO PAUSE FOR JUST A MOMENT BECAUSE WE'RE ABOUT TO GET INTO THE ACTUAL MOVE INTO DEPARTMENTS. ANYTHING TO THIS POINT, COUNCIL, THAT WE CAN EITHER TRY TO ANSWER OR MAKE A NOTE TO BRING BACK TO YOU. WE'VE GOT THE DELINEATION OF THE OUTSTANDING GENERAL FUND DEBT. WE'LL WORK ON THAT. >> THERE'S JUST ONE THING IF PEOPLE ARE WATCHING THIS, YOU NEVER KNOW WHO IS WATCHING IT. BUT IN ONE OF THOSE EARLIER CHARTS, YOU SAW THE TAX LOAD FOR EL PASO BEING REALLY LOW, EXCEPT THAT THEIR DEBT LOAD IS HORRENDOUSLY HIGH. THERE'S A MILLION WAYS YOU CAN SKIN A CAT. SOME CITIES DON'T MAKE VERY WISE CHOICES ABOUT THAT, BUT YOU CAN'T LOOK AT ANY ONE THING IN A VACUUM AS FAR AS HOW YOU SERVICE YOUR CITIZENS' NEEDS. I THINK THAT'S THE LESSON OF THESE CHARTS. >> WELL SAID, YOU'RE RIGHT. THERE'S A COUPLE OF MORE YOU CAN HIGHLIGHT ON THERE. YOU TAKE MIDLAND FOR AN EXAMPLE. THEIR DEBT PER CAPITA IS HIGH. THEIR REVENUE FROM SALES IN MNO IS RELATIVELY HIGH. IT'S A LITTLE LOWER THAN OURS, BUT IT'S RELATIVELY HIGH. BUT THEY HAVE A VERY LOW TAX RATE. SO NONE OF THIS IS IN A VACUUM. YOU MOVE ONE AND IT'S LIKELY IS GOING TO PUSH ON ANOTHER. >> THERE'S A LOT OF OIL EQUIPMENT AND STUFF LIKE THAT DOWN IN MIDLAND THAT WE DON'T HAVE UP HERE. [OVERLAPPING]. >> THERE'S A LOT OF [OVERLAPPING]. >> TAX BASE IS TOTALLY DIFFERENT. THERE'S NO COMPARISON. >> CORRECT. IT'S A TOTALLY DIFFERENT TAX BASE, TOTALLY DIFFERENT STRUCTURE. >> THANK YOU. >> ANYBODY ELSE? >> WE'RE GOING TO JUMP RIGHT IN ON THE GENERAL FUND ON THE BOTTOM THOSE ARE YOUR GRAPH CHANGES. THIS IS ALL ON THE REVENUE SIDE AGAIN, SO TWO VERSIONS OF LOOKING AT THE SAME. WE'LL JUMP IN ON DEPARTMENTS, AND YOU'LL SEE HOW THEY ADD UP. BUT SO THERE'S YOUR EXPENSES. THESE MATCH WHAT WE WERE LOOKING AT IN THE TABLE FORMAT A LITTLE BIT EARLIER TODAY. YOUR BIG CHANGE IS IN PUBLIC SAFETY, AND THEN YOU'VE GOT DECREASES FOR THE VAST MAJORITY OF THE REST. I PROBABLY SHOULD HAVE DONE IT TO START, BUT I'LL DO IT. NOW, I'M WANT TO BRAG ON THE DEPARTMENTS AND THE DIRECTORS. I MEAN, THEY TURNED IN TWO DIFFERENT BUDGETS THIS YEAR. THE BUDGET WE THOUGHT THE WORLD LOOKED LIKE BACK WHEN WE STARTED IN MARCH, AND THEN AS WE SAW THE CHANGES AGAIN, AND I'LL TELL YOU THEIR ORIGINAL BUDGETS WERE GOOD. THEY REALLY WENT BACK AND WORKED ON IT. ANYTIME YOU SEE THINGS THAT ARE FLAT OR DOWN OVER A PERIOD OF THREE YEARS, WE'RE EATING A LOT JUST TO BE ABLE TO DO THAT. [01:25:01] NOW, THIS YEAR, THE INFLATIONARY INCREASE WAS NOT NEAR SO BAD AS IT'S BEEN LAST YEAR AND THE YEAR BEFORE, BUT I'M REALLY PROUD OF THEM. THEY'VE DONE WELL. THE TOP LINE STORY, 314.4 MILLION TO 316.7. I THINK HE'S HERE TODAY. WE HAVE THE CITY ATTORNEY. NOW WE DO THE DEPARTMENTS. SLIGHT CHANGE IN THE CITY ATTORNEY'S BUDGET. JUST A HAIR OVER $100,000. THEY'VE HAD SOME LONG, LONG, LONG SERVING EMPLOYEES THAT HAVE RETIRED, AND THAT AFFECTS TERMINAL PAY. THEY'RE NOT SNEAKING THEMSELVES RAISES IN HERE. THAT'S NOT WHAT THAT NUMBER IS, SO WE'LL SET IT ON THE TABLE AND MATLE BY ME A BARBECUE LATER. PROFESSIONAL SERVICES UP JUST A LITTLE BIT. THAT'S LITIGATION AND APPELLATE CASES THAT WE'VE GOT, AND THEN SCHEDULED CHARGES ARE KIND OF GOING DOWN. QUESTIONS ON THE CITY ATTORNEY. >> REMIND EVERYBODY WHAT SCHEDULED CHARGES ARE. >> SCHEDULED CHARGES ARE HOW A DEPARTMENT PAYS FOR ITS PIECE OF INFORMATION TECHNOLOGY, THEIR TELEPHONES, THEIR POSTAGE. THEY'RE PART OF AN INSURANCE LOAD, ANY OF THOSE TYPES OF THINGS. THEY'RE NOT A DIRECT EXPENSE THAT THEY'RE DOING A VOUCHER FOR, BUT THEY'RE BEING CHARGED FOR IT BASED ON THEIR EMPLOYEES. FOR IT, IT'S LITERALLY BASED ON THE NUMBER OF DEVICES. QUESTIONS? HOW ABOUT CITY COUNCIL? YEAR OVER YEAR CHANGE FROM 613,000 DOWN TO ROUGHLY 602,000. THE ONLY REAL INCREASE IS IN THE COMPENSATION LINE. I WANT EVERYBODY TO KNOW THAT IT'S NOT THE COMPENSATION THAT IS PAID TO THE CITY COUNCIL. THAT HAS NOT CHANGED IN WELL OVER 100 YEARS. RATHER THAT PAYS FOR THE COUNCIL STAFF, AND THEY DIDN'T EITHER GET A GIANT RAISE, WE'VE HAD TO ADJUST THE STARTING PAY TO BRING IN OUR GRADUATE INTERNS. THAT'S YOUR CHANGE THERE. >> THAT 2% FOR THE WHOLE COUNCIL WOULD HAVE AVERAGED ABOUT, I THINK, 18 BUCKS FOR THE YEAR. >> THAT'D BE 18 OVER THE COURSE OF A YEAR, MAYOR, SO DIVIDE BY 12. DOLLAR 50. CITY MANAGER, SO COMPENSATION IS THE STAFF SALARIES. THAT'S NINE-TENTHS OF 1%. THAT'S ALL TIED INTO THE PROPOSED INCREASE. YOU'VE GOT SAME SCHEDULED CHARGES AND BENEFITS ARE LARGELY GOING TO BE THE SAME IN ALL THESE. WE HAVE SHIFTED WHERE WE'VE GOT THE LUBBOCK 101 STUFF MOVING AROUND AND SHORT VERSION IS, I'M UP $10,000, SIX-TENTHS OF A PERCENT. QUESTIONS? >> AS WE'RE GOING THROUGH EACH OF THESE IN THE COMPENSATION FIGURES AS WE LOOK AT THEM, THEY INCLUDE YOUR 2.5% INCREASE FOR NON PUBLIC SAFETY CIVIL SERVICE EMPLOYEES? DOES THIS COMPENSATION LINE INCLUDE THAT? IT DOES NOT. YOU'RE HOLDING THAT AS A SEPARATE. THIS WOULD BE THE COMPENSATION WITHOUT THE [OVERLAPPING]. >> CORRECT. >> VERY GOOD. THANK YOU. >> CITY SECRETARY. SLIGHT COMPENSATION INCREASE. THIS IS MAINLY OVERTIME. HER VITAL STATISTICS TEAM IS ON CALL THROUGHOUT ALL WEEKENDS. PRETTY MUCH THE SAME WITH BENEFITS. COURTNEY AND HER TEAM HAVE NEGOTIATED A FIVE YEAR CONTRACT RATHER THAN AN ANNUAL CONTRACT ON ONE OF THEIR MAJOR SERVICE PROVIDERS THAT IS SAVING MONEY. LASER FISH HAS FINISHED, AND THEN THERE'S A BUDGET CARRYOVER THAT GOT ROLLED OFF, BUT FY26 HAS AN ELECTION IN IT. THAT COST HAS ROLLED IN. OTHER CHARGES PRIOR YEAR HAD SOME ADDITIONAL COMPUTER EQUIPMENT. THEY PURCHASED THAT. THEY DON'T NEED TO REPURCHASE IT, SO THAT HAS COME BACK OUT. STILL ALL IN, COURTNEY'S BRINGING FORWARD NEARLY A 370 $0 DECREASE. SOME SLIGHT FEE CHANGES HERE, [01:30:02] NOTARY FEE FROM $6-10. THEN FOR HEALTH VITAL STATISTICS, THE SAME, 6-10. THEN WE FOUND OUT WE HAVE BEEN PRO RATING WRECKING YARD AND JUNK YARD PERMIT FEES AND WE'RE NOT SUPPOSED TO, IS THAT CORRECT? >> WELL, WE JUST HAD NEVER ISSUED ONE BEFORE. TO MAKE THIS, WE DID AN ANNUAL PERMIT FEE. >> WE PRO RATED THEM TO ZERO, AND NOW WE'RE DOING ALL OF IT? >> YES. >> THAT ACTUALLY WAS DISCOVERED DURING A ZONE CHANGE IN FRONT OF COUNCIL HERE. NOT VERY LONG AGO. WELL, WE'VE NOT HAD A NEW OR EXPANDED WRECKING FACILITY IN I GUESS ANYBODY'S MEMORY. IF YOU HAVE ONE NOW. FACILITIES DEPARTMENT. COMPENSATION CHANGES OVERTIME. SAME WITH BENEFITS, OUR COST OF MATERIALS AND SO FORTH CONTINUES TO RISE. OUR SECURITY CONTRACT IN THIS BUILDING, THAT'S UNDER PROFESSIONAL SERVICES. THAT'S GOT AN ESCALATOR BUILT INTO IT. THEY'RE PART OF THE PROPERTY INSURANCE AND ELECTRICITY IS GOING DOWN. THEN YOU'VE GOT AN INCREASE IN IT NATURAL GAS AND THE LIABILITY INSURANCE. WE DID PURCHASE A MINIATURIZED SNOWPLOW A YEAR AGO, MAINLY FOR USING HERE AND IN THE GARAGE. WE BOUGHT IT. WE DON'T NEED IT, SO THAT MONEY COMES OUT. ALL IN A DECREASE FROM 5.5 TO 5.1 MILLION. I'LL KEEP FLIPPING, SO PLEASE JUST STOP WHENEVER. FINANCE OPERATION. SAME INCREASE THAT YOU'RE GOING TO SEE THROUGHOUT ON THE TMRS RELATED. THEY'VE BEEN ABLE TO SLIGHTLY REDUCE THE SUPPLY BUDGET. PROFESSIONAL SERVICES IS UP A LITTLE BIT. THE BOND FIRE IT'S A SOFTWARE THAT ALLOWS US TO DO CERTAIN PURCHASING THINGS MUCH QUICKER AND EASIER THAN WE'VE DONE IT FOR YEARS. WE'VE HAD IT FOR A YEAR. IT'S TYPICAL. YOU GET THE SECOND YEAR THEY GO UP. WE HAVE A PROGRAM CALLED INSIGHT. I DON'T KNOW EXACTLY WHAT IT IS, OTHER THAN THE COST OF IT WENT UP. THEN THE SCHEDULED CHARGES HAVE GONE DOWN SLIGHTLY. ALL IN 3.96 MILLION TO 3.98 MILLION. $24,000 CHANGE HERE. HUMAN RESOURCES. WE HAVE REDUCED ONE FTE HERE. ELIZABETH HAS DONE SOME REORGANIZATION. YOU HAVE A COMPENSATION CHANGE. BENEFITS, THE PORTION OF THAT THAT'S BASED ON COMPENSATION HAS GONE DOWN, BUT THEN YOU'VE GOT TMRS, ALL THE OTHER THINGS THAT BRING IT BACK. THE SUPPLIES ARE UP, AND THIS IS FOR NEW EMPLOYEE ORIENTATION. ELIZABETH AND HER TEAM HAVE DRAMATICALLY REVISED HOW WE WELCOME AND ONBOARD OUR NEW EMPLOYEES, AND I VERY MUCH LIKE IT, VERY MUCH SUPPORTED. PROFESSIONAL SERVICE, TRAINING AND TRAVEL BUDGETS. THOSE ARE DOWN ABOUT $2,000. THE SCHEDULED CHARGES THROUGH IT RELATED ARE UP. CHANGE IN THE BUDGET OVERALL IS 1.3 MILLION TO 1.259 MILLION, SO PRETTY SIGNIFICANT. GOOD BUDGET. INTERNAL AUDIT, STAFFING CHANGES THERE. THERE'S NO ELIMINATIONS, JUST SOME STAFFING CHANGES. THAT BROUGHT DOWN COMPENSATION A LITTLE BIT, WHICH ALSO BRINGS DOWN THAT PORTION OF THE BENEFITS COST. THEY'VE BEEN ABLE TO RESET THEIR SUPPLY BUDGET, PROFESSIONAL SERVICES, MAINLY TRAVEL AND TRAINING, DO INCREASE IN SCHEDULED CHARGES, MOSTLY IT, ALL IN 307.9 OR 308 TO 308.6. >> JERRE, WE KEEP SEEING THE SCHEDULED CHARGES FOR IT COSTS GOING UP. AGAIN, REMIND US IS THAT BECAUSE OF NEW EQUIPMENT? >> YES. IT'S NEW EQUIPMENT. THERE'S A SEPARATE BUDGET THAT'LL SHOW YOU WHAT THEY'VE CHANGED OR WHAT THEY'VE INCREASED. NEW EQUIPMENT, WE HAVE GOT ONE OF THE MOST MASSIVE NETWORKS THAT YOU CAN IMAGINE. IT LITERALLY STRETCHES FROM MULES TO LAKE ALLEN HENRY AND EVERYTHING IN BETWEEN. A LOT OF IT IS CYBER, AND SOME OF THE STUFF WE'RE CONTINUING TO EITHER REPLACE OR JUST ADD ADDITIONALLY RELATED TO CYBER. >> ANOTHER QUESTION THAT JUST CAME UP AS YOU COMPARE FINANCE TO HUMAN RESOURCES, [01:35:04] FINANCE SCHEDULE CHARGES DECREASED DUE TO LIABILITY INSURANCE, BUT HUMAN RESOURCES INCREASED DUE TO LIABILITY INSURANCE. >> ONE HAS LIKELY HAD A CLAIM AND THE OTHER ONE DIDN'T. WHEN WE BUY INSURANCE, IT THEN GETS ALLOCATED ON CLAIMS EXPERIENCE AND OR RISK EXPOSURE BACK INTO EACH DEPARTMENT. THE INSURER SEES A SINGLE CHECK. WE DIVIDE IT UP THROUGHOUT. IT CAN ALSO BE A GOOD MOTIVATIONAL TOOL. WHY ARE CLAIMS UP? WHAT CAN WE DO ABOUT IT? >> WE'RE SELF-INSURED. >> WELL, WE HAVE SELF-RETENTION. >> SELF-RETENTION. >> YOU'RE SELF-INSURED ON WORKERS' COMPENSATION. >> SELF-RETENTION? >> YOU MAINLY HAVE SELF-RETENTION ON THE OTHERS. HEALTH'S A LITTLE DIFFERENT. YOU BACK HEALTH WITH A WHAT'S CALLED A STOP LOSS PLAN. IT'S INSURANCE FOR INSURANCE, BUT YOU PAY UP TO YOUR STOP LOSS. NON-DEPARTMENTAL. WE'VE ZEROED OUT THE BENEFITS LINE. THERE WAS A SMALL PIECE OF WORKERS COMP BEING CHARGED TO THIS, AND THERE'S ACTUALLY NOT A BODY IN THIS DEPARTMENT, SO THAT SHOULDN'T HAVE BEEN THERE. MAJOR CHANGES. OUR ECAD PAYMENT IS GOING UP A LITTLE BIT. THEN WHAT WE CALL PCORI, WHICH IS PATIENT SOMETHING OUTCOME RESEARCH INSTITUTE. IT'S A FEE WE HAVE TO PAY TO THE FEDERAL GOVERNMENT BECAUSE WE HAVE A HEALTH PLAN. IT GOES UP EVERY YEAR. NO SPECIAL PROJECTS IN HERE. THAT'S THE OTHER CHARGES. THIS IS THE 75,000 THAT I HAD. THEN YOU SEE AN INCREASE IN SCHEDULED CHARGES FOR STREET LIGHTING. COUNCIL, GO BACK A YEAR. WE HAD A LOT OF DISCUSSIONS ABOUT THAT. WE EXPECTED A LARGER INCREASE THIS YEAR. LP&L HAS WORKED QUITE DILIGENTLY, AND YOU HAVE A VERY MINOR INCREASE. IT'S NOT GOING TO STAY DOWN FOREVER, BUT THEY ARE HELPING US A BUNCH. ALL IN 4.8 MILLION TO 4.3 MILLION. COMMUNICATIONS AND PUBLIC ENGAGEMENT. COMPENSATIONS DOWN A BIT. WE NO LONGER NEED THE TEMPORARY HELP USING IN 311. STANDARD COMMENTS ON BENEFITS. SUPPLY BUDGET IS DOWN A BIT. THE PROFESSIONAL SERVICES. REMEMBER LAST YEAR, WE BUDGETED FOR THE NEW WEBSITE AND ALL THAT SYSTEM. WE DON'T NEED TO REBUDGET FOR IT. THEN THEY ACTUALLY GOT THEIR IT CHARGES A LITTLE BIT DOWN. SAME THING WITH LIABILITY INSURANCE, 1,085,000 TO 1,032,000. NET DECREASE HERE AS WELL. BUILDING SAFETY, SLIGHT REDUCTION AND COMPENSATION FOR STAFFING CHANGES. STANDARD BENEFITS COST, SUPPLY BUDGET IS DOWN, SAME AS THEIR FUEL COST, THEIR VEHICLE MAINTENANCE COSTS ARE DECLINING. WE CHARGE BACK THROUGH THE FLEET SO THAT WE KNOW WHAT'S GOING ON WITH THE VEHICLES. THEIR SCHEDULED CHARGES IS REALLY THE INCREASE THAT THEY HAVE, AND THAT'S LARGELY FOR IT, 3.10 MILLION TO 3.14, SOME $37 INCREASE ON THIS ONE. >> CODE ENFORCEMENT, COMPENSATION BECAUSE OF A SHIFT OF WHERE THE INSPECTORS ARE CHARGED THAT ALSO TOOK DOWN BENEFITS. THEY'VE BEEN ABLE TO PULL THEIR SUPPLY BUDGET DOWN AS WELL AS THEIR TRAINING IN TRAVEL. WE DID TAKE 100,000 OUT OF THE DEMOLITION COSTS. THAT'S SOMETHING WE'RE GOING TO WATCH OVER THE COURSE OF THE YEAR. AND THEN THEIR SCHEDULED CHARGES ARE ACTUALLY QUITE A BIT IN THIS CASE. A IN 3.3 MILLION TO 3.1 MILLION. SO JUST A HAIR OVER $200,000 REDUCTION. >> MR. COLLINS. SO WHEN WE REDUCE OUR DEMOLITION BY $100,000, DOES THAT ESSENTIALLY MEAN THERE'S POTENTIALLY $100,000 WORTH OF CODE ACTIVITIES THAT WE WON'T BE ABLE TO PERFORM? >> IF THEY CAN FULLY EXPEND THIS LINE ITEM BEFORE THE END OF THE YEAR, WE'RE EITHER GOING TO HAVE TO COME FOR A BUDGET AMENDMENT AND THAT'S FOR SOME DOLLARS, OR THEY'LL STOP. >> WE'RE 43, WE'RE GOING TO BE I LOOK AT ACTUAL FOR 23 24 AT 607. [01:40:02] YOU WOULD ANTICIPATE THAT THEY'RE GOING TO NEED THAT 100,000. >> UNDER 50, 60 AT LEAST. >> THANK YOU. >> THE YEARS THAT WE END UP WITH A COMMERCIAL STRUCTURE THAT WE HAVE TO BRING DOWN, THAT'S THE BIG EXPENSE. GETTING A SINGLE FAMILY HOME DOWN THAT'S BEEN ABANDONED IS PRETTY AFFORDABLE. IT'S WHEN WE GET HIT WITH A COMMERCIAL PROPERTY. ENVIRONMENTAL HEALTH AND VECTOR. THIS ONE DOES HAVE AN INCREASE. WE ALL KNOW WHAT'S BEEN GOING ON IN THE PUBLIC HEALTH WORLD WITH GRANTS AND SO FORTH. WE WERE COVERING COSTS FOR YEARS OUT OF SOME OF THOSE GRANTS THAT WE JUST CAN'T COVER ANYMORE. ENVIRONMENTAL HEALTH INSPECTOR AND OF THE VECTOR CONTROL STUFF. MR. WALKER THAT RUNS THIS DEPARTMENT HAS PUT A LOT OF STUFF IN PLACE TO MINIMIZE THAT, INCLUDING HIS TRAINING, ENVIRONMENTAL HEALTH ALSO BE VECTOR, IN VECTOR HAS BEEN VERY BUSY THIS YEAR, AS YOU MIGHT IMAGINE. BUT THAT IS AN INCREASE THAT YOU SEE IN THERE, ABOUT 130,000. BENEFITS, THE SAME ASSOCIATED COST. THEY'VE BEEN ABLE TO GET THE SUPPLY BUDGET DOWN A LITTLE BIT. MAINTENANCE IS GOING UP ON THEM, AND THEN THE SCHEDULED CHARGES ARE GOING UP. ALL IN 2.1 MILLION TO 2.3 MILLION. WE DO HAVE SOME REQUESTED FEE CHANGES IN VECTOR, AND THESE MAINLY HAVE NOT BEEN CHANGED IN QUITE A WHILE. $25 FOR BODY ART AND PIERCING PERMITS. THE ON PREMISE SMOKING, WHICH CONTINUES TO BE A SMALLER AND SMALLER GROUP, BUT IT'S STILL THERE. AND THEN FEE TO REVIEW A NEW FOOD FACILITY, A POOL, A SPA, ETC, $25 THERE. THE GROUP HOUSING, $25. THEN WE ARE ALSO PROPOSING THEN TO TAKE OUT A NUMBER OF FEES THAT JUST DON'T REALLY SEE THE BENEFIT FOR THAT. YOUR MOBILE FOOD VENDING PERMIT FEE, THAT'S ONE OF THEM THAT'S WRAPPED UP IN THE NEW LEGISLATION FROM THE STATE. THERE'S GOING TO COME A POINT PRETTY QUICK WHEN YOU WON'T. YES. IN ESSENCE, A PERMITTED MOBILE FOOD VENDOR ANYWHERE IN THE STATE WILL BE A PERMITTED MOBILE FOOD ANYWHERE IN THE STATE. ALL CAME OUT OF A DISPUTE IN THE MIDLAND ODESA AREA. PLANNING DEPARTMENT, REDUCING ONE FTE. WE DID RECLASS A PLANNER TO A SENIOR PLANNER. YOU HAVE A NET SAVINGS AS A RESULT OF DOING THAT, AND WE GET TO KEEP A GOOD EXPERIENCED PERSON. BENEFITS GOES DOWN BECAUSE THE FTE WENT DOWN, SLIGHT INCREASE IN THE SUPPLY LINE ITEM. TRAVEL TRAINING IS DOWN. WE BOUGHT COMPUTER EQUIPMENT IN THE CURRENT YEAR THAT WE DON'T BUY NEXT YEAR, SO THAT'S DOWN, AND THEN ALSO IT AND POSTAGE. 1.2 MILLION TO 1.1 MILLION. $700,000 DECREASE. LIBRARIES. COMPENSATION IS DOWN DUE TO STAFFING CHANGES. SAME THING WITH BENEFITS. SUPPLIES ARE DOWN. OUR SECURITY CONTRACT AT MAHON IS GOING UP. IT'S NOT THE SAME CONTRACT THAT'S AT THIS BUILDING, BUT IT HAS THE SAME ESCALATORS IN IT. YOUR OTHER CHARGES ARE DOWN. COUNSEL, THANK YOU ALL FOR BUYING THE GODEKE LIBRARY BUILDING. NOW YOU'RE SEEING THE RESULTS THEREOF. THEIR SCHEDULED CHARGES ARE DOWN, IT'S NOT IT. IT'S REALLY BECAUSE OF ELECTRIC BILLS AND THE PROPERTY INSURANCE. YOU'RE INSURING YOUR OWN BUILDING INSTEAD OF SOMEBODY ELSE'S. 4.48 MILLION TO 4.2 MILLION. MUSEUMS. IF YOU REMEMBER LAST YEAR, WE WERE ABLE TO PUT SOME OF THE COMPENSATION ON THE HOTEL OCCUPANCY TAX. IT'S APPROPRIATE, AND IT MATCHES STATE LAW. YOU'RE SEEING THAT CONTINUE OUT. BENEFITS ARE UP SLIGHTLY FOR THEM, SUPPLIES ARE DOWN. THEIR SCHEDULED CHARGES ARE UP FOR ELECTRIC IT AND PROPERTY INSURANCE. [01:45:01] ALL IN, IT'S JUST UNDER A $2,000 CHANGE YEAR OVER YEAR. JACKIE AND HER TEAM GET A LOT DONE AND PROVIDE A LOT FOR $1.4 MILLION. REALLY GOOD. PARKS AND REC. COMPENSATION IS UP SLIGHTLY. ABOUT 31,000. BENEFITS ARE GOING DOWN, AND THIS IS LARGELY BECAUSE YOU'LL REMEMBER A NUMBER OF YEARS AGO, WE TRADED FULL TIME EMPLOYEES TO GET AN EQUIVALENT DOLLAR TO USE FOR PART TIME. COBY AND HIS TEAM HAVE MADE THAT WORK TREMENDOUSLY. PROFESSIONAL SERVICES ARE GOING UP, AND AGAIN, THAT IS LARGELY YOUR MOWING CONTRACT. SCHEDULED CHARGES ARE UP, CAPITAL OUTLAY IS DOWN. IT'S ONLY $10,000, BUT I LIKE IT BECAUSE IT SHOWS THAT NEXT YEAR, THEIR TAX NOTE IS GONE. TOTALLY GONE. 14 MILLION TO 15 MILLION, 921,000 OF THAT'S THE MOWING. ENGINEERING, REDUCED BY ONE FTE. UNDER MR. TURPIN, THEY CONTINUE TO BE ABLE TO DO MORE AND MORE WORK TOWARDS CAPITAL PROJECTS. WHEN YOU DO THAT, YOU CAPITALIZE THEIR EFFORTS, SO THE CAPITAL PROJECT PAYS FOR THAT. THAT'S WHERE YOU'RE SEEING THAT CHANGE. THAT ALSO TRIGGERS THE BENEFIT. THEY'VE ALSO BEEN ABLE TO PULL DOWN THE SUPPLY BUDGET. THEY INTEND TO USE LESS OUTSIDE CONSULTING SERVICES. THEIR SCHEDULED CHARGES ARE UP. I WOULD NOTE THIS LOOKS DIFFERENT BECAUSE OF THE REIMBURSEMENT LINE ITEM. THAT'S A NEGATIVE EXPENSE, SO IT'S A REVENUE DOWN THERE. THAT'S JUST HOW THE FLOW IS OF THOSE PROJECTS THAT THEY CHARGE TO AND GET PAID BACK. THE HARD COST ACROSS THIS DEPARTMENT ARE DOWN. PROPOSED FEE CHANGES. WE'RE ASKING TO ADD A FEE TO INSPECT A COMMERCIAL APPROACH OR A COMMERCIAL DRIVEWAY CUT. WE DON'T CURRENTLY HAVE THOSE, BUT WE TAKE AN INSPECTOR OUT TO SEND THEM TO DO THAT WORK. SOLID WASTE. COMPENSATION IS DOWN, REDUCING ONE FTE. COUNSEL, I CAME TO YOU A YEAR AGO AND ASKED FOR AN ASSISTANT DIRECTOR. FAIR WARNING. NEXT YEAR YEAR AFTER, I'LL ASK TO HAVE IT BACK, BUT WE DIDN'T FILL IT. WE DO HAVE A NEW SOLID WASTE DIRECTOR, MR. JOE CAVAZOS. HE'S PROBABLY OUT THERE. HIS HAIRSTYLES LOOKS A LOT LIKE ERIC'S, CASE YOU'RE CURIOUS. WHERE ARE YOU AT, JOE? SORRY. THERE HE IS. WE'VE BEEN TRYING TO STEAL JOE FOR A NUMBER OF YEARS AND WE GOT HIM, AND I'M REALLY, REALLY PLEASED WITH IT. I THINK IF Y'ALL HAVE A CHANCE TO WORK WITH HIM. HE'LL BE VERY IMPRESSED AND JOE'S EXPERIENCE IS MUCH BROADER THAN SOLID WASTE, BUT HE'S AN ABSOLUTE EXPERT AT IT, AND I'M VERY GLAD THAT HE'S HERE. JOE, I WILL TRY TO GET THAT BACK. AT THE APPROPRIATE TIME. YOU SEE THE CHANGES IN COMP AND BENEFITS RESULTING FROM THAT? SUPPLY BUDGETS ARE DOWN SLIGHTLY HERE. PROFESSIONAL SERVICES. WE'VE REALLY TAKEN THAT AND JUST TRIED TO THREW IT BACK UP CLOSER TO ACTUALS. WE DO HAVE TO RENT OR LEASE CERTAIN MACHINES ON A DIFFERENT TIMES. THIS IS THE FIRST ONE YOU'RE SEEING WHERE IT SAYS UTILITY BILLING COSTS ARE GOING UP, SO THAT'S THROUGH LUBBOCK POWER AND LIGHT, CITY OF LUBBOCK UTILITIES. THEIR CHARGE BACK TO US TO BALL OUR UTILITIES IS GOING UP. THIS IS THE ONLY ONE IN THE GENERAL FUND, BUT YOU'LL SEE IT AGAIN IN OTHERS. SCHEDULED CHARGES, IT, AND LIABILITY INSURANCE, AND THEN CAPITAL OUTLAY DOWN A LITTLE BIT DUE TO THE TRANSFER TO DEBT SERVICE. THAT'S WHAT WE SAW BACK IN THAT DISCUSSION ON RESERVES. ALL IN A PRETTY SIGNIFICANT CHANGE, 28.5 MILLION TO 26.6, SO PRETTY GOOD REDUCTION HERE. HERE ARE YOUR FEE CHANGES. THE THIRD LINE DOWN IS THAT MONTHLY RESIDENTIAL, THE $1. EVERYTHING ELSE PRETTY MUCH DRIVES OFF OF THAT. WE ARE ASKING FOR $1 TIPPING FEE AT THE LANDFILL, THAT'S $1 A TON, AND THEN OUR SPECIAL WASTE. THE HANDLING OF THAT FOR US CONTINUES TO BE MORE AND MORE EXPENSIVE. WE NEED TO RECOVER THAT COST. STREETS. SOME STAFFING CHANGES HAVE PULLED COMPENSATION DOWN JUST SLIGHTLY. [01:50:01] BENEFITS ARE GOING UP WITH THE TMRS AND THE HEALTH PREMIUMS. DIESEL FUEL. WE'VE DONE PRETTY GOOD ON GASOLINE, NOT QUITE AS GOOD ON DIESEL. SCHEDULED CHARGES ARE UP, CAPITAL OUTLAY IS DOWN BECAUSE YOU'RE SEEING THE TAX NOTES COME DOWN. 6.79 MILLION DOWN TO 5.9 IN THE STREET DEPARTMENT. THIS IS NOT STREET MAINTENANCE. THAT'S A SEPARATE 14.5 MILLION DOLLAR BUDGET. STREET MAINTENANCE. 2025 STREET MAINTENANCE. THIS IS THE CURRENT YEAR. ALSO 14.5 MILLION, 14 MILLION GENERAL FUND, 500 GATEWAY. THIS IS HOW IT WAS SPENT. THIS IS THE FIRST YEAR SINCE COVID STARTED THAT SOME OF OUR UNIT COST PRICES ARE GOING DOWN. ASPHALTS GONE DOWN ALE BIT. THE CONCRETE PATCHING HAS GONE DOWN. WE'VE GOT A LITTLE BIT OF LEFTOVER THERE. THE MILL AND RELAY IS ABOUT TO START. BUT WHAT WE DO IS NOW WE CAN GO PICK UP KIND OF TOP OF THE LIST PROBLEMS THAT WOULD HAVE BEEN ROLLED OUT INTO THE NEXT YEAR. THEN IF WE END UP WITH A MINOR AMOUNT OF MONEY, IT'S NOT ENOUGH TO FUND SOMETHING ELSE, THAT GOES ON TOP OF NEXT YEAR. REMEMBER, THE CHALLENGE WITH STREET MAINTENANCE RELATED TO YOUR BUDGET IS THEIR SEASON DOES NOT MATCH YOUR FISCAL YEAR. THIS DOESN'T REALLY START UNTIL THE WEATHER WARMS UP, AND IT ENDS WHEN IT GETS COLD. THERE'S WHERE THE 2025 STREET MAINTENANCE PROJECTS ARE. HERE IS 2026. YOU SEE THE NEIGHBORHOODS WHERE WE'LL DO THE REJUVENATOR. THAT'S WHAT TURNS THE STREETS REALLY DARK BLACK AGAIN. THE CONCRETE PATCHING AND THE ASPHALT PATCHING. YOU DO THAT IN THE FIRST YEAR AND YOU COME BACK THE NEXT YEAR IN THAT SAME AREA AND YOU DO YOUR REJUVENATOR, AND THAT TYPE OF WORK. WE'VE GOT A PRETTY HEAVY LIST FOR TOTAL RESURFACES. WHAT WE SOMETIMES CALL THE MILL AND RELAY. YOU CAN SEE THOSE THERE. IT'S TIME TO UPDATE OUR PAVEMENT CONDITION RATING ASSESSMENT. THEN WE NEED TO REHAB THE MARTIN LUTHER KING BOULEVARD BRIDGE, THE OVERPASS. THE CITY ONLY OWNS TWO OVERPASSES. THIS IS THE BIG ONE. ON A MAP BASIS, THAT'S WHAT THAT LOOKS LIKE, AND I'LL ATTEMPT TO THERE YOU GO. THERE. THAT ALSO IN YOUR PACKET. >> JERRY, IF I COULD ASK, WHAT KIND OF A SCHEDULE DO YOU WORK ON FOR OVER WHAT PERIOD OF TIME ALL STREETS TO BE RESURFACED? >> THERE'S A LOT OF DIFFERENT WAYS TO DO THAT, AND PROBABLY DAVID OR JOHN COULD BE MORE DIRECT. WE STILL ARE NOT WHERE WE WANT TO BE WITH STREET MAINTENANCE, AND IT'S DIFFERENT RESIDENTIAL FOR ARTERIAL. ASPHALT STREETS, 7-10 YEAR LIFE. WHAT WE DO, WHAT THEY DO, AND HE SAW IT IN THAT PAVEMENT CONDITION RATING. THEY FOCUS ON AN AREA WHERE THAT PAVEMENT CONDITION RATING HAS FALLEN. THERE ARE SOME AREAS THAT STREET FOR WHATEVER REASON, LESS TRAFFIC, MAYBE JUST A DIFFERENT LOAD OF ASPHALT, IT SEEMS TO LAST LONGER. OTHER AREAS THAT DETERIORATES. WE FOCUS ON CONDITION MORE THAN WE FOCUS ON AGE. TRAFFIC. >> TRAFFIC BUDGET, REDUCTION OF ONE FTE, ASSOCIATED REDUCTION ON BENEFITS. VEHICLE MAINTENANCE AND FUEL COSTS ARE UP. THESE ARE PRIMARILY DIESELS, AND THESE ARE MOST OF THE TRUCKS YOU SEE SITTING IN THE INTERSECTIONS WITH THE BIG MAN LIFTS IN THE BACK OF THEM, EXPENSIVE. PROFESSIONAL SERVICES. THIS WILL TRIGGER OVER INTO SOME OTHER UTILITIES LATER, BUT OUR DIG TEST FEES. THE TEXAS ONE CALL THAT WE HAVE TO DO. THOSE CHARGES BACK TO US ARE GOING UP. WE NEED A NEW LATEX PRINTER. OUR SCHEDULED CHARGES ARE GOING UP, AND CAPITAL OUTLAYS GOING UP BECAUSE WE BOUGHT ANOTHER ONE OF THE BIG BUCKET TRUCKS A YEAR AGO. STILL ALL IN, IT'S AN $1,100 INCREASE. ANIMAL SERVICES. COMPENSATION IS UP DUE TO ADDING THE TWO ANIMAL CONTROL OFFICERS. [01:55:04] THAT ALSO TRIGGERS DOWN THROUGH YOUR BENEFITS. SUPPLIES ARE DECREASING DUE TO MEDICAL SUPPLIES AND FUEL COSTS GOING DOWN. I THINK ALL BUT ONE OF THE THINGS THEY OWN ARE GASOLINE. WE DO NEED TO ADD SECURITY SERVICES AT THE SHELTER. THAT'S WHAT YOU SEE THE INCREASE IS IN PROFESSIONAL SERVICES. OTHER IS COMING DOWN, WE BOUGHT SOME COMPUTER EQUIPMENT THAT WE DON'T NEED TO BUY AGAIN. SCHEDULED CHARGES ARE UP SLIGHTLY. TOTAL CHANGE, 3.7 MILLION UP TO 3.9 MILLION. WE ARE ASKING FOR TWO FEE CHANGES HERE. $25 INCREASE IN THE DANGEROUS ANIMAL, AND $25 FOR SHIPPING OUR RABIES SPECIMENS OUT. WE'RE DOWN TO ONE PLACE AND THEY'LL ONLY TAKE THE SPECIMENS IN ONE MANNER. EMERGENCY MANAGEMENT. COMPENSATION IS BASICALLY FLAT, SLIDE INCREASE IN BENEFITS. SUPPLIES ARE DOWN, MAINTENANCE IS DOWN. PROFESSIONAL SERVICES IS UP, THAT'S REALLY CONTRACTS. THIS INCLUDES ALL OF THE TECHNOLOGY THAT'S THIRD PARTY THAT'S IN THE EOC. ALSO INCLUDES YOUR SIREN ACTIVATION SYSTEM. SCHEDULED CHARGES ARE ALSO DOWN ON ELECTRIC. ONE MILLION FOURTEEN THOUSAND DOWN TO 1,008,000, NOT BIG, BUT THEY BROUGHT IT DOWN. LUBBOCK FIRE RESCUE. BACK TO THE EARLY SLIDES, COMPENSATION IS UP, NOT THE RAISE. YOU SEE THAT DOWN AT THE BOTTOM. THAT IS UP BECAUSE OF THE STEPS. YOU'LL NOTICE THAT'S ABOUT 200,000 HERE. IT'S A BIGGER NUMBER IN PD, AND THAT'S JUST BASED ON WHERE THE 400 PLUS PEOPLE STAND IN THEIR RANKS EACH YEAR. SAME CHANGES WITH BENEFITS. THEY BROUGHT THE SUPPLY BUDGET DOWN, MAINTENANCE IS DOWN BECAUSE OF RADIO SHOP CHARGES. PROFESSIONAL SERVICES ARE UP VERY SLIGHTLY TO TEST THE LADDERS. THEIR PROPERTY AND LIABILITY INSURANCE WENT UP, BUT I WOULD NOTE THAT IT WENT UP VERY SLIGHTLY. CAPITAL OUTLAY, THAT IS DUE TO THE TAX NOTE PAYMENTS BECAUSE THAT'S HOW YOU'RE BUYING THE TRUCKS. REMEMBER IF THE SEVENTH YEAR ONE ROLLS OFF, ONE ROLLS ON AND IT'LL STABILIZE, 73.5 MILLION TO 76.4, INCLUDING THE 2+2.1 MILLION IN THAT COMPENSATION ADJUSTMENT. SOME PROPOSED FEE CHANGES INSIDE OF FIRE. INSPECTION OF A FLAMMABLE LIQUID UNDERGROUND TANK, $150-300. ASKING FOR A SIGNIFICANT INCREASE IN THE FIREWORKS PERMITS, ALAN MARTIN AND HIS TEAM HAVE LOOKED AT WHAT THEY DO TO DO THOSE. EVEN AT 15, WE'RE PROBABLY NOT QUITE COVERING THE COST, AND THERE'S VERY FEW OF THOSE EACH YEAR. TENS, $15. THEY'RE PART OF THE GAME ROOM INSPECTIONS AND THEIR RE INSPECTIONS, A $100-150. THEN YOU'VE GOT REINSPECTION AFTER A FAILED INSPECTION, AND THIS IS CHANGING IT FROM ONE PENNY PER SQUARE FOOT TO TWO PENNIES PER SQUARE FOOT. IT'S A ONE PENNY CHANGE, BUT IT'S A TIMES TWO ON THE FATE. THEN SAME LOGIC ON THE NEXT ONE, WHICH IS THE FINAL INSPECTION. THEN WE'RE ASKING TO INCREASE, AGAIN, THE REINSPECTION FEES FOR FAILED INSPECTIONS. WE DIDN'T HAVE REINSPECT FEES A FEW YEARS AGO, AND WHEN WE PUT THEM IN, THE NUMBER OF REINSPECTS PLUMMETED. IT'S CHALLENGING FOR THEM TO DO THEM, BUT THIS IS DOING WHAT IT'S SUPPOSED TO DO. THE FINAL ONE IS A PLAN RESUBMITTED TO HALF A PENNY PER SQUARE FOOT. CARRYING ON? >> MR. COLLINS. >> THANK YOU, MAYOR. WOULD YOU GO BACK TO 2083? THE DIFFERENCE IN 735 AND 764. [02:00:05] THAT DOES NOT INCLUDE THE PROPOSED COMPENSATION INCREASE? >> IT DOES. >> IT DOES INCLUDE. >> IT DOES INCLUDE IT. >> ON THIS. >> YES. >> THAT'S DIFFERENT FROM WHAT YOU'VE SHOWN US BEFORE. >> YES. BECAUSE THE TIME YOU SPREAD THAT OTHER ONE, IT'S SUCH LITTLE NUMBERS. BUT NO. IT IS INCLUDED. >> THANK YOU. >> THE HARD COST CHANGE WOULD BE THE 76.4 -2.1. >> GOT YOU. >> OVERALL, THEIR HARD COST WENT UP BY ABOUT 800,000. >> BUT YOUR COMPENSATION NUMBER AT THE TOP DOESN'T CHANGE, BUT YOU'RE PUTTING THIS IN THIS ADJUSTMENT IN AT THE BOTTOM. >> VERY GOOD. >> THANKS. >> MOVING ON, WE'RE STILL IN THE FIRE MARSHAL'S OFFICE. WE'RE BACK ON PAGE 85. NURSING HOME INSPECTIONS, FOUR PER BED, 275 MINIMUM TO $8 PER BED, TO $175 MINIMUM. MOBILE FOOD VENDOR FEE. THIS IS FOR THEM TO DO THE FIRE PORTION OF THAT. THAT MAY OR MAY NOT GET CAUGHT UP IN THAT OTHER LEGISLATION, BUT WE'LL WATCH AND SEE. HYDRANT FLOW TESTING, THIS IS FOR CONSTRUCTION PROJECTS OR MAJOR REMODELS. THEN YOU HAVE OPERATIONAL PERMITS, WAS A HALF A CENT, THE MINIMUM CHARGE OF 100 AND THEY'RE UPPING IT REINSPECTION FEE FOR AN OPERATIONAL PERMIT. OPEN BURNS. THAT'S BEEN $500 FOREVER. THESE GENERALLY REQUIRE THE STANDBY OF THE FIRE DEPARTMENT, AND WE'RE NOT GOING ANYWHERE FOR $500 WITH A CREW IN A TRUCK, SO THEY'RE ASKING TO BRING THAT UP TO 2000. THEN YOU'VE GOT THE DRY PIPE, HOW SOLAR SYSTEMS WORK, ALL OF THAT STUFF. TODAY, WE DON'T HAVE THAT, BUT IT'S BECOMING A BIGGER AND BIGGER OCCURRENCE. TAKING OUT THE ANNUAL FIREWORKS PERMIT, TAKING THAT TO ZERO, BECAUSE YOU'VE GOT THE PERMIT ON THE PRIOR PAGE. THEN YOU SEE DOWN HERE WHERE THE DRY PIPE WAS $100, BUT IT'S MOVING UP TO THAT OTHER ONE. THAT ONE IS ZEROS. EVERYBODY READY FOR MUNICIPAL COURT. COMPENSATION DECREASE. THIS IS ONE OF THE REDUCED FTES. SAME IMPACT THEN ON BENEFITS. SUPPLIES ARE DOWN, MAINTENANCE IS UP A BIT. PROFESSIONAL SERVICES ARE INCREASING BECAUSE THEY'RE USING A TEMP RATHER THAN PULLING IT OVER INTO THE SALARY, AND THEIR SCHEDULED CHARGES ARE ON THEIR LIABILITY INSURANCE, TELECOM, AND POSTAGE. PRETTY GOOD ON THAT. ALL IN A CHANGE FROM TWO MILLION FLAT TO BASICALLY 1.97, ABOUT $30. POLICE? >> MAYOR POTEL. >> ON THE VEHICLE MAINTENANCE, A LITTLE REDUNDANT, BUT ARE THESE FOR THE FIRE MARSHAL VEHICLES OR? >> FOR MUNICIPAL COURT? IT'S THE MARSHALS VEHICLES. >> SORRY, GUYS. I DIDN'T MEAN. I WAS STILL THINKING FIRE OVER THERE FOR THE CITY MARSHAL. >> CORRECT. >> BUT DON'T THEY LEAVE THEIR CARS HERE AT WORK INSTEAD OF TAKING THEM HOME? >> THEY DO. NONE OF THOSE FOUR ARE TAKE HOME VEHICLES. >> WHY ARE THEY NOT TAKE HOME VEHICLES? BECAUSE, WE HAVE EVERYBODY TAKING THEIR VEHICLES HOME? >> WELL, THERE'S NOT FOUR CITY MARSHALS FOR ONE. THEY'RE USING PART TIMES. THAT'S A DIFFICULTY IN HIRING. IT'S NOT NECESSARILY THE POSITION. THEY'RE USING PART TIME HELP AND THEY'RE USING CONTRACTED SECURITY HELP, WHICH IS IT'S BEEN A GOOD MOVE FOR THEM FINANCIALLY. BUT WHY ARE THEY NOT TAKE HOMES? THEY'VE NEVER BEEN, AND THERE'S NEVER BEEN A REASON FOR THEM. THE CITY MARSHAL DUTY STATION IS AT THE MUNICIPAL COURT. >> THANK YOU. >> READY FOR POLICE? AS FAR AS COMPENSATION GOES, THIS WILL BE IDENTICAL TO FIRE. THE STEP INCREASES ARE IN THE COMPENSATION LINE, 556-563. AGAIN, OUT OF THAT TOTAL 900 AND SOMETHING THOUSAND THAT ARE STEP INCREASES. [02:05:01] THE MAJORITY OF THAT'S OVER AT THE PD. BENEFITS GO UP AS WELL. SUPPLY COSTS ARE UP. THIS IS LARGELY DUE TO AMMUNITION AND UNIFORMS. MAINTENANCE IS GOING DOWN BOTH ON VEHICLE MAINTENANCE. WE'VE BEEN ABLE TO GET A LOT OF NEW POLICE CARS, AND WE'RE BUYING A LOT MORE NEXT YEAR, AS WELL AS RADIO SHOP. PROFESSIONAL SERVICES DECREASING DUE TO THE PATROL DIVISIONS, BUILDING COSTS ARE GOING DOWN. THE OTHER CHARGES, WE ARE TRYING TO CONSOLIDATE THOSE WRECKED VEHICLE COSTS THAT I TALKED ABOUT EARLIER, THAT'S MOVED OVER INTO A CAPITAL PROJECT TO STAND ON ITS OWN. ONE OF THE BIG BENEFITS TO PUTTING THAT IN CAPITAL. IF IT'S NOT SPENT IN A YEAR, A CAPITAL PROJECT CARRIES OVER YEAR TO YEAR, AND WE KNOW THAT AND SEE IT, SO WE KNOW HOW MUCH TO ADD OR NOT ADD YEAR TO YEAR. IT'S ALSO A MOVING TARGET. NO PUN INTENDED. SCHEDULED CHARGES. INCREASING. REMEMBER, COUNSEL, WE ARE REPLACING ALL OF THE RUGGED TABLETS. THAT WAS APPROVED BY COUNSEL EARLIER. YOU'VE DONE ONE OF THREE. WE ACTUALLY HAVE THEM ALL. YOU JUST MAKE THREE PAYMENTS. LIABILITY INSURANCE AND ELECTRIC IS UP, AND THEN THE 2.3 MILLION, 2.28 MILLION FOR COMP ADJUSTMENT, SO 95.6 MILLION TO 98.97, BASICALLY 99. TAKE 2.2 OUT OF THAT, 2.3, AND THAT'LL TELL YOU YOUR HARD COST CHANGE. PUBLIC HEALTH. COMPENSATION INCREASE BECAUSE OF SHIFTING STAFFING COSTS THAT WE'RE NOT CHARGED BY THE GRANTS. WE HAVE ALSO SIGNIFICANTLY REDUCED ALL THE OTHER POSITIONS WE CAN THAT WE'RE GRANT FUNDED RATHER THAN CARRYING THEM OVER HERE. BENEFITS CHANGES AS WELL. SUPPLIES ARE DOWN. MAINTENANCE IS DOWN, OUR FEES FOR THE MEDICAL DIRECTOR, LAB DIRECTOR, AND PHARMACISTS ARE UP SLIGHTLY IN YOUR PROFESSIONAL SERVICES LINE BETWEEN ALL OF THEM, THAT'S $10,000. SCHEDULED CHARGES ARE UP ON IT, PROPERTY INSURANCE, AND ELECTRIC SO 1.84 MILLION TO 1.98. >> MR. COLLINS. >> IN PUBLIC HEALTH, WE SEE APPROXIMATELY $100,000 AND $110,000 INCREASE IN SCHEDULED CHARGES. IS THAT PRIMARILY DUE TO INSURING THE NEW BUILDING OR OTHER ITEMS THAT MIGHT? >> THE BIGGEST PART OF IT'S IT. >> IT'S IT? >> IS IT. YOU ALL THOUGHT YOU WERE DONE LOOKING AT ARPA, AND YOU'RE REALLY CLOSE TO BEING DONE. BUT THIS IS THE SUMMATION OF ARPA. THERE'S STILL 5.768 TO SPIN DOWN, AND THAT TAKES CARE OF ALL OF THIS. WE CAN'T CHANGE ALLOCATIONS. WE'RE PAST ALL THAT. NO ATTEMPTS TO DO SO. SHOWING YOU WHERE THOSE PIECES STAND. >> THE UTILITY PROJECT AT THE END AT 3.6. >> WEST WEST LUBBOCK WATER EXPANSION. >> THAT IS THE WEST LUBBOCK WATER. CLINTON. >> THAT WAS COMMITTED FOR SOME OF THAT LONG LEAD TIME EQUIPMENT. WHERE THE GENERAL FUND CAPITAL? ADMINISTRATIVE SERVICES. THE ONLY NEW MONEY IS IN FACILITIES, THE EQUIPMENT REPLACEMENT FUND FOR 250 FACILITY MAINTENANCE FUND FOR 200 AND ROOF REPLACEMENTS FOR 200. INSIDE OF THE ADMINISTRATIVE SERVICES GROUP, THE ONLY CAPITAL WE'RE REQUESTING IS $650,000, AND IT'S ALL GOING TO FACILITY RELATED ITEMS. >> WOULD YOU MIND EXPLAINING THE FUNDING SOURCE PART OF THAT CHART? >> WHERE IT SAYS NEW CASH AND ALL THAT STUFF. YES, I'D BE GLAD TO. THAT'LL BE ON EVERY PAGE. THANKS FOR ASKING. IF THE EQUIPMENT REPLACEMENT FUND TO COME UP WITH THAT 250,000, WE'RE CARRYING OVER 199 THAT PROJECTS HAVE FINISHED, AND THERE'S DOLLARS REMAINING. WE'VE PULLED ALL THOSE TOGETHER, AND WE'RE ADDING $50,000 BASICALLY IN NEW CASH. FOR THE MAINTENANCE FUND AND THE ROOF REPLACEMENT, NEW CASH. [02:10:09] >> ALL RIGHT. CULTURE AND RECREATION. WE HAVE ONE REQUESTED CAPITAL PROGRAM THAT IS $300,000, AND THAT IS FOR AMENITY REPLACEMENTS FOR PARKS. THAT IS NOT FOR A PARK. THAT'S 300,000. WHEN WE TALK ABOUT AMENITIES, THOSE ARE TRASH CANS, PARK BENCHES, PICNIC TABLES, JUST THE LITTLE THINGS THAT MAKE THE PARKS WORK. THAT'S ALL WE'RE ASKING HERE. PUBLIC SAFETY, $50,000 FOR OUTDOOR WARNING SIREN SYSTEM. THAT IS THE MONEY THAT IF THE NEED DICTATES IT, WE CAN ADD THE NEXT SIREN. PURCHASE INSTALLATION AND TRAINING OF SPECIALIZED CAMERA SYSTEMS. THAT IS THE BIG AXON SYSTEM AT PD THAT MANAGES EVERYTHING FROM THE BODY CAM TO THE CAR, TO ALL THE BACK END STUFF. CONTINUING ON THE ELECTRONIC TICKET RIDER PROGRAM, WHICH SEEMS TO BE WORKING VERY WELL. IN FACT, IF YOU'RE OUT IN OUR LOBBY, THERE'S ACTUALLY A VIDEO PUT TOGETHER BY POLICE ABOUT HOW THAT WORKS. THEY REALLY DID THAT TO SHOW PEOPLE WHEN THEY GET STOPPED HOW IT WORKS. GOOD DEAL. PERSONAL PROTECTIVE EQUIPMENT, THAT'S IN THE FIRE DEPARTMENT. I'LL PROBABLY SPEND TIME ON THIS NEXT ONE. ARFF FOAM TRANSITION, AIRPORT RESCUE AND FIREFIGHTING. WE'VE ALL HEARD AND TALKED ABOUT PFAS AND PFOS. THERE IS NOW, NUMBER 1, WE DO NOT USE PFAS IN THE FOAM IN THE CITY AND HAVE NOT USED IT FOR YEARS AND YEARS AND YEARS. WE STILL USE IT AT THE AIRPORT BECAUSE WE HAVE TO. IN ORDER TO MAINTAIN FAA CERTIFICATIONS, WE HAVE TO HAVE THAT. THERE IS NOW AN APPROVED ALTERNATIVE TO A FOAM AT THE AIRPORT THAT HAS PFAS. BEFORE YOU CAN USE IT, YOU HAVE TO ELIMINATE ANY AND ALL TRACES OF THE FOAM THAT HAS PFAS IN YOUR EXISTING TRUCKS. SO WE WILL BE PAYING A CONTRACTOR THAT IS LICENSED AND CERTIFIED TO COME IN AND IN EFFECT SCRUB AND CLEAN EVERY SINGLE PUMP, PIPE, NOZZLE, ANYTHING IN THOSE TRUCKS THAT HAS HAD THAT FOAM TOUCHING IT. THEN WE GET A CLEAN BILL OF HEALTH THAT WE CAN GET BACK TO THE FAA OR THE EPA. THAT ONE, WE DID HAVE A SLIGHT AMOUNT OF PRIOR YEAR CASH THAT WE PULLED OVER INTO IT, AND THEN WE'VE TALKED A COUPLE OF TIMES ALREADY ABOUT THE POLICE WRECKED VEHICLE REPLACEMENT FUNDS. PUBLIC WORKS; STREETS. THIS IS WHERE THESE SOURCES ARE GOING TO BE IMPORTANT. WE'VE GOT UPLAND, 82ND TO 98TH, 12.5. REMEMBER, THERE'S OTHER MONIES THERE ON TOP OF THIS. THEY'RE NOT OUR MONIES. THEY'RE MPO MONIES. WHEN IT SAYS OTHER ON THAT LINE ITEM, THAT'S A PROGRAM TO BE A CO TO GET THAT STREET AND TAKE ADVANTAGE OF THE MANAGING MONEY. COME DOWN, YOU'VE GOT A WHOLE SEQUENCE THAT SAY 22B ON THE REST OF THE PAGE. THOSE ARE YOUR 2022 BOND PROJECTS. WE'RE GOING TO HAVE AN EXPENDITURE, UPLAND 19TH TO 34TH, 2.2 OF EXISTING CARRYOVER DOLLARS THAT CAME OUT OF THE BONDS AND THEN NEW BOND MONEY. THEN 66 ALCOVE TO UPLAND, 8.8, BOND DRAWDOWN. RESIDENTIAL UNPAVED ROADWAYS. WE'RE GETTING NEAR TO THE END OF THAT TURNING THE DIRT RESIDENTIAL ROADS INTO PAVED RESIDENTIAL ROADS. SAME THING. CARRIES OVER ONTO THE NEXT PAGE. NOW YOU'VE GOT STREET MAINTENANCE, 14 MILLION IN CASH, THE 500 FROM GATEWAYS IN THE GATEWAY CAPITAL. BROADWAY, FIRST PART OF THAT, 13.2. NEXT SUMMER, BROADWAY WILL BE UNDER CONSTRUCTION, BUT IT WILL BE THE UTILITY PART OF IT. WE'RE GOING TO DO ALL THE UTILITIES FIRST, AND THEN 27, THEY'LL COME IN AND DO THE ROAD. YOU'VE GOT THE AVENUE P, 130TH. WE SHOULD PROBABLY START CALLING IT LOOP 88, WHICH YOU'VE GOT THAT PROJECT. FIRST PHASE ON UPLAND 98TH TO 114TH. THAT'S ALSO BOND, 146TH SLIDE TO QUAKER. WE ARE ABOUT TO DO THE RIBBON CUTTING ON 146TH INDIANA TO QUAKER. THAT ONE'S FINISHED, AND WE'RE ABOUT TO DO THE NEXT. MOVING DOWN 34TH UPLAND TO ALCOVE, FIRST PHASE OF THAT BOND PROJECT. [02:15:04] ONLY ONE THAT IS NEW CASH IS STREET MAINTENANCE. ANOTHER WORD FOR NEW CASH IS MONEY OUT OF OUR POCKET. COMING ON, STILL ON THE STREET DEPARTMENT, 2022/2024 STREET BOND CONTINGENCY FUND. WE LOST THE SCREENS. EVERYBODY'S COME BACK? THIS IS A NEW ONE, AND I'M GOING TO ATTEMPT TO EXPLAIN IT. JOE MAY HAVE TO JUMP IN, OR CHERYL MAY HAVE TO JUMP IN AND HELP ME. I AM SUGGESTING BY THE CREATION OF THIS CIP, THAT WE TAKE A PORTION OF THOSE INTEREST EARNINGS THAT ARE ACCUMULATING IN THE INS FUND, INTEREST AND SINKING FUND, AND PUSH THEM OVER INTO HERE. THIS WOULD BECOME A CONTINGENCY ITEM AS WE TRY TO FINISH OUT THROUGH THE END OF 2029, ALL THESE BOND PROJECTS. KEEPS YOU FROM COMING BACK INTO GENERAL FUND BUDGETS. THIS IS THE YEAR THAT I THINK WE CAN DO THIS, AND IT'S GOING TO GIVE YOU, I REALLY THINK THE SAFETY VALVE THAT WE'RE LIABLE TO NEED. 2024 BOND HAS A CONTINGENCY ITEM OF ITS OWN. 2022 DID NOT. IT WAS BUILT INTO THE PROJECTS WHEN WE BID THEM. SOME OF THOSE BIG ONES ARE ABOUT TO COME OUT ON 2022. COUNCIL, IT'S UP TO ALL. I REALLY THINK THIS COULD AVOID SOME HEARTACHE IN THE FUTURE. >> CAN YOU REMIND US OF WHAT THE CONTINGENCY AMOUNT IN THE 2024 BOND WAS? IS IT 3 MILLION? >> I THINK IT'S 3.4. >> 3.4 MILLION? >> I THINK IT WAS 3,400,000, BUT ERIC, DO YOU HAVE THAT NUMBER OFF TOP OF YOUR HEAD? >> MAYOR PRO TEM. >> I HAVE A QUICK QUESTION ON THE NEIGHBORHOOD TRAFFIC MANAGEMENT PROGRAM. WHAT IS THAT? I DON'T RECALL THAT. >> DID I GO PAST IT? >> IT'S ON PAGE 96. >> NO, I HAVEN'T GOT THERE YET. >> SORRY. WELL, I'M THERE. >> WE'LL ANSWER THAT WHEN WE GET THERE. >> WE'RE ON PAGE 96 OF 98. YOU WANT TO JUST GO TO 98? CALL IT GOOD. >> SORRY. >> MR. ROSE. >> THANKS, MAYOR. THE CONTINGENCY ON THE 24 BOND THAT WAS JUST FINANCED IN, HOW DID WE FUND THAT CONTINGENCY? >> THAT'S BORROWED MONEY. >> IT WAS JUST BORROWED MONEY. THAT'S ALL I HAVE. THANK YOU. >> DR. WILSON. >> THANKS, MAYOR. REAL QUICK. NOT THAT I DON'T THINK WE'LL PROBABLY END UP NEEDING IT, BUT IF WE DON'T USE THE 2 MILLION IN CONTINGENCY, WHAT WILL HAPPEN TO THE MONEY? >> IT'S AVAILABLE FOR REALLOCATION IN A FUTURE BUDGET. YOU WILL NOT LOSE IT. THAT'S A LOT OF MONEY. IT'S 1% OF THE 22. NOW, PAGE 96. THIS IS TRAFFIC. THESE ARE ALL NEW MONEY. WE'RE ASKING FOR 50,000 TO CONTINUE PUTTING THE BACKUP POWER SYSTEMS IN ALL OF OUR TRAFFIC LIGHTS. THAT HAS BEEN WORKING, AND UNFORTUNATELY, IT'S BEEN TESTED. BUT WHEN WE DON'T HAVE THEM, IT'S PRETTY EASY TO SEE. FIBER OPTIC EXPANSION PROGRAM. I THINK COUNCIL IS AWARE, I'M NOT SURE THAT EVERYBODY THAT MIGHT BE WATCHING US TODAY IS, BUT THROUGH THE TRAFFIC ENGINEERING TEAM, WHAT WAS DAVID BRAGG'S TEAM BEFORE HE PROMOTED? THEY RUN ALL THE FIBER THEMSELVES. THEY MANAGE OUR OWN FIBER NETWORK. IT HAS ALL OF OUR FIRE STATIONS, POLICE STATIONS, LIBRARIES, TRAFFIC SIGNALS, RADIO TOWERS, PUMP STATIONS. THAT'S A NEVER ENDING JOB AS THAT FIBER NETWORK CONTINUES TO GROW TO MEET OUR NEEDS. 100,000 THERE. TRAFFIC SIGNALS. THIS IS THE MONEY, AS YOU ADD, SIGNALIZED INTERSECTION. AS WE GROW, AND I KNOW WE'RE NOT GROWING AS FAST AS WE WERE, BUT AS WE GROW AS BOND PROJECTS START TO WRAP UP, THESE ARE THE DOLLARS TO DO THAT. THEY'RE NOT PUT OUT UNTIL THEY CALL IT MEETS WARRANTS. [02:20:04] IT MEETS THE ENGINEERING CRITERIA. IF IT'S NOT USED, IT'S COMING BACK, YOU'LL RE-ALLOCATE IT, BUT TO NEED IT AND NOT HAVE IT CAN GET PRETTY TOUGH. TRAFFIC OPERATIONS FACILITY RENOVATIONS FOR $300,000. THIS IS A $2 MILLION PROJECT. THE PEOPLE THAT RUN THAT DEPARTMENT AS WE WERE GOING THROUGH THIS, WE UNDERSTAND. I DON'T KNOW THAT I'D EVER SPEND $2 MILLION ON THAT BUILDING. IT'S BAD. WE'VE GOT A BUILDING THAT WAS PURCHASED WHEN WE PURCHASED MUNICIPAL HILL. IT'S DOWN OFF THE CORNER. SOME OF Y'ALL HAVE BEEN OUT TO MY ONE ON ONE DAY AND BEEN IN IT. THAT IS WHERE ALL OF THE PROGRAMMING OF EVERY SIGNAL IS DONE, ALL THE SIGNS ARE MADE, ALL THE INVENTORY, ALL THAT. THE TRUCKS START AND STOP THERE EVERY DAY, IT NEEDS HELP. IT NEEDS A LOT OF HELP. THEY HAVE WORKED WITH US TO SAY, LET'S PAINT AND PATCH, AND THAT'S WHAT WE'RE DOING. IT'S A LITTLE MORE THAN THAT, BUT THAT'S THE BASICS. NEIGHBORHOOD TRAFFIC MANAGEMENT PROGRAM, THAT IS THE PROGRAM WHERE IF THE STUDIES BEAR IT OUT, THAT WE CAN COME IN AND PUT THEY CALL THEM TRAFFIC CALMING, SPEED BUMPS. >> IT'S CALLED SPEED CUSHIONS. >> SPEED CUSHIONS. I WON'T TELL YOU THE SPEED AT WHICH THEY'RE NOT A BUMP. >> IF YOU GO OVER THEM FAST ENOUGH YOU NEVER NOTICE THEM. >> THANK YOU, MAYOR [LAUGHTER]. KEPT ME FROM SAYING IT. ACCESSIBLE PEDESTRIAN SIGNALS. THIS IS COMPLYING WITH THE NEWEST VERSIONS OF THE AMERICANS WITH DISABILITIES ACT. IT'S NOT A SINGLE PLACE. IT'S A ROLLING PROCESS TO MAKE THOSE CHANGES. TRAFFIC BUDGETS AT 1,060,000, THIS IS ALL NEW CASH. THERE ARE NO GENERAL FUND CAPITAL DOLLARS IN SOLID WASTE THIS YEAR. YOU SEE 78.4 MILLION IS YOUR TOTAL GENERAL FUND CAPITAL. BUT REMEMBER, THE BULK OF THAT ARE THE 2022 AND THE 2024 BOND PROJECTS. THE CASH PART OF IT WITH NEW CASH IS 19.2 MILLION. WE ARE DOWN THIS YEAR. MAYOR, TO ANSWER THE QUESTION OR WHOMEVER ASKED THE QUESTION, THE 2024 BOND HAS 10 MILLION IN IT FOR CONTINGENCY FOR THOSE PROJECTS, 10 MILLION. >> REMIND ME HOW THAT MONEY CAN BE USED, BECAUSE WE DETERMINED WHICH STREETS WE WANT TO BUILD OUT. IF THAT 10 MILLION IS LEFT OVER, WE CAN USE IT? >> YOU CAN. BOTH OF THOSE PROJECTS HAVE THE SAME COUNCIL RESOLUTION THAT IS WRAPPED AROUND THEM, BOTH THE BONDS DO. IT BASICALLY SAYS, YOU'RE NOT GOING TO DO ANYTHING WITH ANY OF THE MONEY UNTIL ALL THE PROJECTS IN THE BOND IDENTIFIED OR FINISHED. AT THAT POINT, WHATEVER DOLLARS ARE AVAILABLE, HAVE TO COME BACK TO COUNCIL. I CAN'T SLIP IT INTO STREET MAINTENANCE OR ANYTHING LIKE THAT. GOT TO GO BACK TO COUNSEL. COUNCIL HAS TO, TO THE EXTENT YOU CAN, DEPENDS ON HOW MUCH YOU HAVE LEFT. COUNCIL CAN THEN TAKE THOSE DOLLARS AND APPLY THEM TO A PROJECT THAT MET THE ORIGINAL CRITERIA, WHICH WAS BASICALLY NEW CAPACITY. IT'S BEEN CHANGED A LITTLE BIT, BUT IT'S BASICALLY NEW CAPACITY. A TWO TO A THREE OR A FIVE, SOMETHING LIKE THAT. >> REGARDLESS, IF THERE'S ANYTHING LEFT OVER, IT HAS TO BE USED ON NEW CAPACITY ROADWAYS? >> YES. IT CAN'T ROLL INTO STREET MAINTENANCE. >> NOW, THE 2 MILLION YOU PUT IN THERE? >> ABSOLUTELY CAN. >> IT CAN. THERE'S A DIFFERENCE BETWEEN THE TWO BECAUSE IT'S NOT BONDED MONEY. >> RIGHT. >> THANK YOU. >> MR. ROSE. >> WELL, I WAS GOING TO MAKE YOU GO BACK AT THE END, BUT SINCE WE'RE ALREADY ON THE THE 2 MILLION CONTINGENCY FOR THE 2022 BOND. WE DID 10 MILLION FOR THE 2024 BOND? >> CORRECT. >> WOULD THAT MONEY STILL SIT IN IMS? WHAT'S THE OPPORTUNITY COST GOING TO BE? >> IT'S HELD IN AN INTEREST BEARING ACCOUNT, AND THEY ALL EARN THE SAME NO MATTER WHERE THEY ARE. >> GOOD DEAL. WHAT DOES THAT COMPARE TO, WE'RE MOVING THE HALF CENT FROM INS? HOW MUCH MONEY IS THAT? I WAS TRYING TO LOOK. >> HALF CENT IS ABOUT 1.2 MILLION? >> ABOUT 1.2. THAT'S ALL I GOT. [02:25:07] >> ANY OTHER QUESTIONS? MAYOR PRO TEM. >> NOT A QUESTION. IT'S MORE OF A COMMENT. I JUST WANT TO THANK ALL THE STAFF FOR REALLY STEPPING UP. TALK ABOUT TEAMWORK. IT IS DEFINITELY EXHIBITED IN ALL OF THIS. I HOPE THAT THE CUTS WERE AS NECESSARY AS POSSIBLE AND THAT NOBODY'S GOING TO BE HINDERED BY THESE MODIFICATIONS. BUT I THINK JUST THE FACT THAT YOU MADE THAT COMMITMENT, I APPRECIATE IT. THANK YOU TO ALL THE STAFF FOR MAKING ALL THOSE ADJUSTMENTS. I KNOW IT WASN'T EASY, BUT WE'RE GOING TO GET THROUGH THIS. THANK YOU. >> WELL, IF THERE'S NOTHING ELSE TO DO, I GUESS THIS CONCLUDES. BUT AGAIN, THANK YOU FOR THAT. AS ALWAYS, IT'S A VERY GOOD PRESENTATION OF THE MATERIAL THIS YEAR. THANK YOU. WE'LL HAVE PLENTY OF TIME TO DISCUSS IT, BUT YOU'VE CERTAINLY EXPLAINED IT WELL, AND I APPRECIATE THE TIME THAT GOES INTO PRESENTING THIS TO US. I BELIEVE WITH THAT, WE ARE DONE HERE TODAY. * This transcript was compiled from uncorrected Closed Captioning.