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>> THANK YOU AGAIN, EVERYONE FOR BEING HERE TODAY, FOR MORE EXCITEMENT.
[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.]
WE WILL CONTINUE WITH OUR WORK SESSION, PREPARING TO DISCUSS OR DISCUSSING OUR BUDGET THAT THE CITY MANAGER HAS PRESENTED TO US.I WILL AT THIS TIME TURN IT OVER TO OUR CITY MANAGER TO CONTINUE WHERE WE LEFT OFF YESTERDAY.
>> THANK YOU, MAYOR. COUNCIL, WELCOME.
I DIDN'T PUT ANYBODY TO SLEEP YESTERDAY.
A COUPLE OF JUST QUICK OVERVIEW ITEMS. TODAY WILL BE PART 2.
YOU CAN SEE THE LIST UP ON THE SCREEN THERE OF WHAT WE WILL TALK ABOUT.
I DO HAVE A SERIES OF ADDITIONAL INFORMATION, CORRECTIONS, ANNOUNCEMENTS, THAT SORT OF THING THAT WE'LL NEED TO DO AT THE VERY END TODAY.
I THINK WE'LL GET A GOOD DISTANCE INTO THIS.
AS ALWAYS, STOP WITH ANY QUESTIONS THAT YOU MAY HAVE OR SUGGESTIONS.
STARTING WITH ENTERPRISE, WE'LL JUMP RIGHT IN WITH WATER AND WASTEWATER.
AT THE FUND LEVEL, SO YOUR COMBINED FUND LEVEL, YOU SEE WHERE WE STAND HERE, THE REVENUE IS EXPECTED TO BE UP SLIGHTLY IN WATER BASED ON CONSUMPTION.
IN WASTEWATER, WE HAD A LITTLE BIT OF AN AGGRESSIVE BUDGET LAST YEAR.
WE DON'T THINK WE'RE GOING TO QUITE HIT IT, SO YOU'VE GOT A LITTLE BIT OF AN ADJUSTMENT TO TRUE THAT BACK UP.
OFTENTIMES WHEN WE TALK ABOUT SELLING WATER, AND WE'RE REMINDED WE'VE BEEN BLESSED WITH A VERY WET YEAR.
TYPICALLY, YOUR HIGHEST WATER USE COMES AFTER YOU'VE HAD A WET YEAR.
EVERYBODY'S YARDS ARE NICE AND GREEN.
THEY LOOK GOOD, NOW THEY WANT TO KEEP IT THAT WAY.
I WAS ASKED ABOUT A WEEK AGO, JUST OUT OF CURIOSITY, WHERE ARE WE ON LAKE ALAN HENRY? WE DOES IT STAND? IT'S 96% FULL.
96%. WE'RE DOING REALLY GOOD THERE.
LITTLE BIT OF A CHANGE IN DEPARTMENTAL OPERATIONS, THAT'S WATER RECONNECT FEES, WHERE IT SAYS REIMBURSEMENTS FROM OTHER CITIES.
THAT IS RELATED TO THE CAPITAL PORTION OF THE COST FOR THE CRMWA CITIES FOR WHOM WE TREAT THEIR CRMWA WATER AND THEN SEND FARTHER DOWN THE PIPE.
AS WE HEARD YESTERDAY, INTEREST EARNINGS DOING WELL.
OUR SEWER LATERAL PROGRAM THAT WE SPENT QUITE A BIT OF TIME ON LAST YEAR.
WE'RE REALLY NOT PUTTING OUT THE DOLLARS THAT WE THOUGHT WE WOULD PULL OUT.
WE'VE TRUED THAT BACK DOWN A LITTLE BIT, AND WE'LL KEEP IT ON IT.
WE'VE HAD A FEW PEOPLE USE THE ASSISTANCE PROGRAM, IF YOU HAVE USED THAT PAY OVER 12 PROGRAM, BUT IT HAS BEEN SURPRISINGLY GOOD.
SURPRISINGLY GOOD. THANK YOU ALL FOR WORKING ON THAT.
WE'RE NOT DIPPING IN TO RESERVES AT THE FUND LEVEL FOR WATER WASTEWATER, EITHER.
WE'LL MOVE OVER THAT WAS REVENUE.
FOR COMPENSATION AND BENEFITS, REMEMBER WE ARE ADDING THE FOUR WATER METER TECHNICIANS.
THAT'S THAT FINAL ROLL-OFF FROM LP&L DOING ALL OF THAT WORK TO NONE.
A LITTLE BIT OF PART TIME PAY.
WE'VE HAD RETIREMENT, ALL THE TYPICAL THINGS THAT GO ON.
OUR OPERATIONS AND MAINTENANCE, SO WE SAY THIS ONE BACKWARDS SO IT DOESN'T GET CONFUSED WITH M&O PROPERTY TAXES.
REMEMBER THAT WAS LARGELY THE FIRST PORTION OF THE WEST LUBBOCK WATER EXPANSION PROGRAM OR PROJECT, AND YOU'LL SEE THE SECOND HALF OF IT HERE IN JUST A LITTLE WHILE.
TRANSFER TO LUBBOCK POWER AND LIGHT FOR UTILITY BILLING, YOU HEARD THIS YESTERDAY IN SOLID WASTE.
YOU'LL HEAR IT WITH WATER WASTEWATER, AND STORMWATER, AS WELL.
THEN SOME OF THE TRANSFERS ARE A LITTLE BIT HIGHER TO BASED ON CAPITAL.
THEN THE TRANSFER THAT GOES OVER THE FLEET TO BUY THE VEHICLES IS ACTUALLY GOING DOWN.
WE'RE DOING REALLY GOOD ON THE FLEET HERE.
I'LL IN 162.2 MILLION TO 171 MILLION.
THAT'S THE FAR LEFT AND THE FAR RIGHT.
WE'LL HIGHLIGHT A FEW AS WE GO ACROSS IT.
THIS IS WHAT WE CALL THE RATE MODEL.
THIS CAPTURES ALL OF THE REVENUES, THE EXPENSES, THE DEBT, THE CAPITAL, EVERYTHING GETS PUT INTO HERE.
THE TOP SECTION IS YOUR REVENUE SECTION.
WE FORECAST TO END THIS CALENDAR OR THIS FISCAL YEAR, FISCAL YEAR '25, AT 168.6 MILLION ON REVENUE, AND THEN PROJECTED FOR NEXT YEAR TO 171.1.
YOU COME DOWN, THEN YOU'VE GOT YOUR OPERATIONS AND MAINTENANCE COST.
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YOU HAVE YOUR INDIRECT COST.THE TRANSFER TO LP&L, AGAIN, THAT IS THE BILLING COST, AND THEN THE TRANSFERS TO OTHERS, THAT'S FLEET AND CAPITAL AND THOSE TYPES OF THINGS.
12.7-13.1, AND AGAIN, THE LARGEST CHANGE THERE IS THE BILLING OFFICE ALLOCATION.
THE NEXT SET, WHERE IT SAYS CASH CAPITAL OUTLAYS, WE'RE AT THE BOTTOM OF THE PAGE NOW.
THIS IS PAY-AS-YOU-GO FUNDING, UP FROM 16.8-20.9 IN MILLIONS.
WE'VE DIGESTED ALL THOSE, I'LL FLIP TO THE SECOND HALF OF THE MODEL.
TOP SEQUENCE ON HERE BRINGS IN YOUR DEBT SERVICE, EARNINGS, ALL THAT TYPE OF THINGS.
WHERE IT SAYS, INTEREST EARNINGS ON BOND FUNDS IN A NEGATIVE.
IT'S A REVENUE. THE REST OF IT'S AN EXPENSE.
CURRENT YEAR 161.8, YOUR NEW BUDGET YEAR, 169.
AGAIN, THE LARGEST OF THOSE CHANGES IS IN THE DEBT SERVICE, AND THAT'S WEST LUBBOCK WATER EXPANSION.
TOTAL REVENUES OVER OR UNDER EXPENDITURES, WE'RE COMING IN RIGHT AT 2.2 MILLION OVER.
THAT'S DOWN FROM THE PRIOR YEAR.
THAT'S NOT INDICATIVE OF A PROBLEM.
WE'VE RAMPED INTO A YEAR THAT WE CAN DO QUITE A BIT OF CASH CAPITAL THROUGH HERE.
THE FINANCIAL METRICS JUST UNDERNEATH THAT.
YOU'VE GOT YOUR DEBT SERVICE COVERAGE.
IT'S A SERIES OF CALCULATIONS.
IF YOU'RE ASKED, WHAT IS THE DEBT SERVICE FOR NEXT YEAR? IT'S 60.1 MILLION.
BUT THOSE TWO SMALLER NUMBERS UNDERNEATH THAT.
THESE ARE WHEN WE GET GRADED BASICALLY BY THE RATING AGENCIES.
OUR COVERAGE RATIO FOR THE NEW BUDGET WILL BE 1.83, SO WE HAVE 1.83 TIMES AVAILABLE TO COVER THE DEBT, AND OUR TARGET TO MAINTAIN OUR RATINGS IS 1.75.
IF WE GO TO TRY TO UPGRADE THIS RATING, AND WE'VE REALLY ONLY GOT ONE MORE STEP WE CAN GO UP, THAT TARGET RATE IS GOING TO GO UP.
IN OUR LAST REVIEW, IT WOULD GO UP SO MUCH.
I JUST DON'T KNOW THAT WE WANT TO HOLD ONTO THAT MUCH OF PEOPLE'S MONIES IN EXCHANGE FOR WHAT'S GOING TO AMOUNT TO JUST A COUPLE OF BASIS POINTS.
WE'LL STAY ON TOP OF THAT, JUST RIGHT NOW, I DON'T SEE US MAKING THAT RUN.
THE FINAL SET ON HERE TALKS ABOUT YOUR RESERVES.
THE POLICY FOR THIS IS 25% OF REVENUE.
REVENUE WAS ON THE FIRST PAGE OF THE MODEL.
CARRY ALL THESE NUMBERS ACROSS, TAKE OUT THE RESERVE FUND REQUIREMENTS.
WHAT YOU SEE IS ENDING THIS YEAR WITH 3.8 PREDICTED AND ENDING NEXT YEAR AT 5.2. NOW, THIS IS COMBINED.
WE'RE GETTING TIGHT, BUT YOU CAN SEE THE MODEL BRINGING THAT BACK UP PRETTY SIGNIFICANTLY IN THE FUTURE.
THE FINAL LINE IS YOUR BASE RATE.
THE BASE RATE FOR WATER, THE BASE RATE FOR SEWER AS A PERCENTAGE OF DEBT SERVICE.
WE'RE AT 56%. IT'S GOING TO COME BACK UP.
THAT'S A LITTLE BIT LOW, BUT WE'RE NOT AT THIS POINT.
WE DO NOT FEEL LIKE WE'RE IN ANY JEOPARDY AS IT RELATES TO THE RATINGS OR TO THE CASH THAT WE'LL HAVE ON HAND.
THAT'S A METRIC USED BY YOUR RATING AGENCIES.
PERFECT IS ONE. SOMETIMES YOU CAN GET THERE, MOST TIMES YOU CAN'T.
>> THANK YOU, MAYOR. ON THIS NEW DEBT SERVICE COMING ON IN FISCAL YEAR '27, WHAT IS THAT? IT'S 2.5, AND THEN RAMPS UP TO 612, 1622?
>> THE SECOND HALF OF THE WEST LUBBOCK PROJECT.
>> IF YOU ISSUE THE DEBT THIS YEAR, YOUR PAYMENTS ARE IN THE FOLLOWING.
>> I HAD ONE. JUST EXPLAIN THE BASE RATE AS A PERCENTAGE OF DEBT SERVICE.
EXPLAIN THAT A LITTLE BIT BETTER TO ME.
>> THE WATER AND WASTEWATER BOTH, YOUR BILL IS TWO COMPONENTS.
YOU HAVE YOUR BASE RATE. THAT'S THE FIXED FEE.
THEN YOU HAVE YOUR CONSUMPTION, HOW MANY THOUSANDS OF GALLONS OF WATER AND HOW MUCH IN YOUR WASTEWATER.
IT'S A COMMON METRIC IN ENTERPRISE UTILITY. YOU'LL SEE THIS.
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THESE SAME ANALYSES ARE DONE INSIDE OF NATURAL GAS, ELECTRIC, ALL DIFFERENT TYPES OF DEALS.A PERFECT WORLD, AND THIS IS NOT JARRETT, THIS IS YOUR RATING GROUPS, WILL TELL YOU THAT YOUR BASE RATE SHOULD COVER ALL OF YOUR DEBT SERVICE.
WHAT WE'RE SAYING HERE IS THE COMBINATION OF ALL OF YOUR BASE RATE REVENUE IS THE EQUIVALENT OF 56% OF DEBT SERVICE.
WE'RE NOT ASKING FOR INCREASED FEES IN EITHER OF THESE TWO.
IF YOU BACK UP LAST YEAR, WE WERE AT 96%.
THIS YEAR, WE'RE DOWN TO 56, AND YOU SEE US STARTING TO CLIMB BACK UP.
>> WHAT ARE THE OTHER SOURCES THAT WE USE TO COVER THE DEBT SERVICE THEN OTHER THAN THE BASE RATE?
>> WE COVER DEBT SERVICE WITH ALL SOURCES OF REVENUES, SO THAT'S GOING TO BE YOUR BASE RATE, YOUR VOLUME RATE IN TODAY'S WORLD INTEREST EARNINGS, AND THEN THERE'S A BUNCH OF MISCELLANEOUS REVENUE THAT COMES IN.
WE MAKE ALL OF THAT AVAILABLE FOR DEBT.
GO BACK UP TO WHERE YOU HAVE COVERAGE RATIO AND COVERAGE TARGET.
YOU SEE THAT OUR COMBINED AVAILABLE REVENUE IS 1.83 TIMES WHAT OUR DEBT SERVICE IS.
NOW, OBVIOUSLY, THAT DOESN'T COUNT EXPENSES AND ALL THAT, BECAUSE THIS IS WHAT THE PEOPLE THAT SELL YOU THE BONDS WANT TO LOOK AT.
ANY OTHER QUESTIONS? THIS FUND IS STILL STRONG.
IT'S STRONG. THAT BASES OF PERCENT WILL START TO CLIMB BACK UP WILL BE PRETTY GOOD.
THOSE ARE GOOD QUESTIONS BECAUSE THE SAME STUFF APPLIES WHEN WE KEEP MOVING.
EASIEST ONE TO LOOK AT IS TO COME ACROSS THE TOP.
WE'LL JUST 0-1,000 HAS NOTHING IN IT.
THAT'S BECAUSE YOU GET THE FIRST THOUSAND GALLONS INCLUDED IN YOUR BASE.
THE NEXT CATEGORY IS 100-5,000.
YOU SEE THAT WE'VE BEEN AT $4.10.
WE'RE STILL AT $4.10 MODEL TODAY.
UNLESS THERE'S OTHER CHANGES, WE'LL BE ABLE TO STAY AT $4.10 NEXT YEAR.
WHAT IS LIKELY TO CHANGE YOUR VOLUME CHARGES? IT'S MAINLY GOING TO BE CHEMICALS AND POWER AND THINGS LIKE THAT THAT AFFECT TREATMENT.
BECAUSE THE MORE OF THAT WE DO, THE MORE IT COSTS.
USE THE THREE QUARTER INCH METER, YOU CAN USE ANY OF THEM.
WE'LL JUST TAKE THAT TOP LINE.
THE CURRENT BASE RATE IS $18.75.
THAT INCLUDES THE FIRST 1,000 GALLONS.
WE'VE NOW BEEN FLAT FOR THE TWO YEARS IN A ROW.
THE MODEL DOES HAVE $1 IN THE FOLLOWING YEAR.
ALL THIS WILL GET RECALCULATED BEFORE YOUR NEXT BUDGET TO SEE IF THAT'S NEEDED OR NOT, BUT THAT'S WHERE IT STANDS.
FOR TODAY'S PURPOSES, FOR YOUR BUDGETS PURPOSE, NO CHANGE.
IF YOU GO DOWN TO THE NEXT, YOU'VE GOT WASTEWATER, AND YOU HAVE BOTH A VOLUME RATE THERE AND YOU HAVE A BASE RATE THERE.
RIGHT NOW, THAT MODEL IS FLAT ALL THE WAY ACROSS THE PAGE.
AS WE START GETTING CLOSER AND CLOSER TO LAKE 7, I THINK YOU'RE GOING TO SEE THAT CHANGE BECAUSE WE'VE GOT TO DO THE VERY LAST PART OF THE STREAM QUALITY UPGRADES.
BUT RIGHT NOW IT'S SHOWING PRETTY FLAT. QUESTIONS THERE? CAPITAL. THIS IS ON THE WATER SIDE.
LET ME BACK THAT OUT JUST A LITTLE.
PUTTING IN ANOTHER MILLION DOLLAR AS WE CONTINUE TO WORK ON GETTING THE 404 OR THE UNITED STATES CORPS OF ENGINEERS PERMIT.
THAT IS SOME NEW CASH AND WHERE IT SAYS OTHER, THAT'S EXISTING CASH THAT WE'VE CLOSED OUT OF SOME OTHER PROJECT.
LOCATE AND REPAIR WATER VALVES.
THAT'S AN ESSENTIAL PART OF KEEPING YOUR SYSTEM RUNNING.
WE TRY TO KEEP DOLLARS IN THAT ACCOUNT TO DO THAT.
WE'VE HAD GOOD LUCK THE LAST COUPLE OF YEARS, SO WE'RE NEEDING TO ADD ONLY 600.
NORMALLY, THAT'LL BE 750 TO ONE MILLION.
MOVE DOWN TO THE LARGE VALVE PROJECT, SAME BASIS, SAME PART OF KEEPING YOUR SYSTEM RUNNING.
THESE ARE JUST MUCH MORE EXPENSIVE PER VALVE.
A MILLION-AND-A-HALF THERE, AGAIN, ALL IN CASH.
NEW METER SETS AND METER REPLACEMENTS.
THIS IS PRIMARILY NEW SETS, AND THEN IT'S REPLACING METERS THAT HAVE BASICALLY AGED OUT OR BEEN DAMAGED.
2.535 MILLION, AGAIN, IN CASH.
NORTH TERMINAL STORAGE RESERVOIR, IMPROVEMENTS.
THAT IS ONE OF THE TWO BIG TERMINAL STORAGE RESERVOIRS THAT'S OUT BY THE AIRPORT.
REMEMBER THAT WAS BUILT IN THE EARLY 1960S.
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IT NEEDS SOME CARE AND FEEDING AS WE CONTINUE TO GO ALONG.WE THOUGHT WE WERE GOING TO HAVE TO DREDGE THAT.
WE WERE ABLE TO DO SOME OTHER WORK THAT SHOWED US NO, BUT THERE'S STILL VALVES AND PIPING AND THINGS LIKE THAT TO KEEP UP WITH.
CONTINUING OVER. HERE IS THE SECOND HALF OF THE WEST LUBBOCK WATER SYSTEM EXPANSION, ESTIMATED TODAY AT 36.4.
THAT'S A LITTLE HIGH THAN WHAT WE EXPECTED A YEAR AGO.
WHEN IT SAYS BONDS, REMEMBER, THESE ARE ALL REVENUE BONDS.
THEY ARE NOT ON YOUR TAX LEVY, THEY ARE NOT GENERAL GOVERNMENTAL DEBT.
THEN FINALLY, PUMPING SYSTEM IMPROVEMENTS, PHASE 3, AT 500, ALSO CASH.
ALL THE WEST LUBBOCK EXPANSION WILL BE CASH.
>> WHEN IT SAYS FUNDING TO DATE, MR. ATKINSON, HOW DO YOU DETERMINE THE FUNDING TO DATE? FOR EACH OF THESE PROJECTS, THERE'S A BEGINNING DATE FOR THEM.
THIS IS THE MONEY WE'VE PUT INTO THOSE PROJECTS AND THE TIME.
IT'S NOT A BALANCE IN ANY ACCOUNT OR ANYTHING LIKE THAT.
>> NO. IT IS UNIQUELY ASSIGNED TO A PARTICULAR PROJECT THAT THIS COUNCIL HAS APPROVED.
>> THESE ARE ALL ONGOING PROJECTS/.
>> THEY'RE ALL ONGOING. I'LL GIVE YOU A COUPLE OF EXAMPLES.
WEST LUBBOCK WATER EXPANSION, WE HAD A VERY SMALL AMOUNT TWO YEARS AGO, AND THAT WAS TO GET THE PRELIMINARY ENGINEERING. WE PAID CASH.
WE HAD THE BIG MONEY IN THE LAST YEAR, THIS CURRENT YEAR'S BUDGET, AND THEN YOU'VE GOT THE NEW MONEY.
THAT PROJECT WILL CLOSE WHEN THE PROJECT IS FINISHED.
WE KNOW WHEN WE START AND WE KNOW WHEN WE FINISH.
IF YOU GO BACK A PAGE, AND YOU LOOK AT THESE MAINTENANCE ACCOUNTS LIKE LOCATE AND REPAIR WATER VALVES, LARGE VALVE PROJECTS, THOSE ARE ONGOING ACCOUNTS.
WE WILL TYPICALLY THOUGH CLOSE THEM AND RESTART THEM ABOUT BETWEEN THE THIRD AND THE FOURTH YEAR, JUST DEPENDING ON WHAT IT IS.
>> THAT'S MY QUESTION. SOME OF THESE SEEM LIKE THEY'RE ONGOING WITHOUT [OVERLAPPING]
>> SOME OF THEM ARE FOUR-DIGIT NUMBERS, AND SOME OF THEM ARE FIVE-DIGIT, THAT'S WHAT YOU'RE SEEING.
>> BUT YOU SET A PERIOD OF TIME ON THEM.
>> GOOD. WE'VE GOT THE LAST PAGE OF THAT, WATER LINE REPLACEMENTS.
THAT'S HOW WE TAKE CARE OF REALLY OLD LINES OR UNDERSIZED RESIDENTIAL LINES.
THAT THING, NOTICE THAT THAT PROJECT NUMBER, IT'S A LARGER NUMBER 2025007.
WE PUT THE MONEY BACK IN THE NEW ONE.
SAME THING WITH WATER LINES AHEAD OF STREET PAVING.
WE'VE TALKED ABOUT THAT PRETTY MUCH EVERY BUDGET.
FIRE HYDRANT REPAIR AND REPLACEMENT, ALSO ONGOING, SYSTEM AND SUPPLY MAINTENANCE, AND THEN THE SECOND AND THIRD STREET WATER LINE THAT ALLOWS US TO ULTIMATELY DECOMMISSION THE OLD PUMP STATION.
NUMBER 3, BILLION AND A HALF, THOSE ARE ALL CASH.
ALL IN, IT'S 48.9 MILLION SPEND, AND 36.4 IS OUT OF THAT ONE WEST LUBBOCK PROJECT AND IS REVENUE DEBT.
>> AM I CORRECT THAT YOU'VE STARTED A NEW NUMBERING SYSTEM TO INDICATE WHAT YEAR THE PROJECT IS STARTED IN? IT LOOKS LIKE.
OTHERWISE, I'M CONSTANTLY HAVING TO ASK, JOE WHAT DOES THAT MEAN? WE'LL MOVE INTO WASTEWATER CAPITAL.
SANITARY SEWER ADJUSTMENTS, THAT YOU'VE GOT THE DATE IN IT '23, '24.
WE'RE ADDING ANOTHER 90 TO IT, SOMETHING YOU DO CONSTANTLY, AND THIS IS HOW WE TRY TO KEEP YOUR MANHOLE LIDS LEVEL WITH WHERE YOUR PAVEMENT IS, SO IT'S MAINLY WHERE WE'RE DOING NEW STREET WORK OR NEW MILL AND RELAYS.
SEWER AHEAD OF BROADWAY, SO THAT'S PART OF WHAT WE'RE GOING TO BE DOING NEXT SUMMER FOR THE BOND PROJECT.
TWO HUNDRED AND NINE THOUSAND IN EXISTING CASH, 791,000 THAT CAME OUT OF US CLOSING OLD PROJECTS AND MAKING THE MONEY AVAILABLE.
SEWER AHEAD OF STREET PAVING AT 450, SOME WORKOUT AT THE WATER RECLAMATION PLANT.
THAT PROJECT STARTED IN FY23, ADDING 1.3, IT'S ALSO CASH.
LIFT STATION REHABILITATION, 350 CASH, NORTHWEST LUBBOCK SANITARY SEWER EXPANSION, 950, THIS IS ONE OF YOUR BIG INTERCEPTORS, CASH.
THEN JUST GENERAL ELECTRICAL IMPROVEMENTS.
THIS IS MAINLY AT THE PLANTS AND THE LIFT STATIONS, 700.
WE WILL KEEP SPENDING MONEY FOR THAT BECAUSE THE VARIOUS NEC,
[00:20:03]
NATIONAL ELECTRIC CODE, STANDARDS CHANGE AND WE HAVE TO UPGRADE EQUIPMENT TO STAY CURRENT.WE NEED TO REPLACE ONE AGED OUT PIVOT ON ONE OF THE TWO FARMS. THE SCADA IMPROVEMENTS ARE TWOFOLD.
THE CURRENT SYSTEM IS HARD TO SUPPORT, AND SECOND, WE ARE MOVING TO A SCADA THAT IS MUCH MORE SECURE IN A CYBER SENSE.
VARIOUS INFLOW AND OUTFLOW METERS, MEASURING THE FLOWS AND THE VOLUMES, MAJOR LINE CONDITION ASSESSMENT AND REPAIR, MANHOLES ON THE BIG INTERCEPTOR LINES, GENERAL SEWER LINE AND SEWER TAP REPLACEMENTS, OF COURSE SEWER TAP REPLACEMENTS, THAT IS THE LATERAL LINE PROGRAM, AND THEN JUST GENERAL MAINTENANCE.
WHAT YOU'RE GOING TO SEE HERE, 9.4 IN WASTEWATER, AND IT'S ALL NEW CASH OR EXISTING CASH THAT CAME OUT OF OLD PROJECTS.
AGAIN, YOU'VE GOT THE 36.4 FOR THE SECOND HALF OF WEST LEVEL.
>> JUST A REMINDER WHAT THE SCADA IS, IT'S THE MEANS BY WHICH WE CONTROL THE VALVES.
>> STEMS FOR SUPERVISORY CONTROL AND DATA ACQUISITION.
SIMPLE MINDED PEOPLE SUCH AS MYSELF, IT'S THE REMOTE CONTROL.
>> THE REMOTE CONTROL FOR OUR SYSTEM.
>> I KNOW THERE'S SOME TRUE SCADA PROFESSIONAL SITTING OUT THERE WATCHING US, BUT THEY'VE HEARD ME CALL IT A REMOTE CONTROL BEFORE.
THESE ARE NOT YOUR WATER BILL.
THESE ARE UNIQUE AND SPECIFIC FEES.
FOR WATER DISCONNECTS AND RECONNECTS, IF YOU'VE GOT REGULAR HOURS, YOU HAVE AFTER HOURS OR HOLIDAYS, WE'RE ASKING FOR $5 ON THAT.
THEN THE METER SET FEES WE ACTUALLY HAVE IN THE BUDGET ORDINANCE EVERY YEAR THAT THESE WILL READJUST TO MEET ACTUAL COSTS, SO IT UPDATES FOR MATERIAL AND LABOR AND SO FORTH, AND YOU SEE WHAT THOSE CHANGES ARE YEAR OVER YEAR.
AGAIN, IF YOU'RE NOT GETTING A NEW METER SET, YOU'RE NOT PAYING ANY OF THIS.
THEN THE LAST, WE HAVE A VERY FANCY, VERY CAPABLE LAB, AND WE DO SAMPLE WORK FOR A LOT OF OTHER CITIES FOR PRIVATE PARTIES.
WE NEED TO UP THAT. YOU'LL REMEMBER IN THIS BUDGET YEAR, WE JUST BOUGHT THAT GIANT CHROMATOGRAPH THING THAT I CAN'T EVEN PRONOUNCE, BUT THOSE COSTS ARE UP JUST A BIT.
>> JUST TO CONFIRM THE RECONNECT AND DISCONNECT FEE THAT IS FOR THE PUBLIC?
>> YES. THAT IS SOMEBODY THAT FOR AN EXTENDED PERIOD OF TIME DID NOT PAY THEIR BILL AND WE HAD TO TURN AN ORDER.
>> THEN THE WATER METER SET FEES WOULD BE A NEW DEVELOPMENT HOME BUSINESS?
>> THEN JUST TO CONFIRM, THE MICROBIOLOGY LAB SERVICE FEE WOULD BE FOR CUSTOMERS UTILIZING [OVERLAPPING]
>> WE'RE READY FOR LUBBOCK POWER AND LIGHT? WE'LL HAVE MR. HARVEY HALL, CFO.
HARVEY, IF YOU'LL POINT AT ME OR SOMETHING, I'LL ADVANCE YOUR SLIDES FOR YOU.
>> WE'LL DO. THANK YOU VERY MUCH.
IT'S THE MISSION OF LUBBOCK POWER AND LIGHT TO DELIVER SAFE, RELIABLE ENERGY ON A CONSISTENT BASIS TO BE ABLE TO DO THAT IN A COST EFFECTIVE WAY TO MAINTAIN FINANCIAL STRENGTH AND HEALTH OF THE UTILITY ITSELF, TO PRESERVE CUSTOMER ASSETS, AND ALSO ENGAGE OUR CUSTOMERS IN AN ONGOING WAY TO ENSURE EXCELLENT CUSTOMER SERVICE.
WHAT YOU'LL SEE BEFORE YOU IS, PING.
DO YOU EVER REMEMBER IN SCHOOL WHEN THEY WOULD FLIP TO THE NEXT SIDE, YOU HEAR THE PING? WE JUST FLIP TO THE NEXT THING. LV IS BANG.
>>I KNOW I JUST DID. THANK YOU VERY MUCH.
I'M ACTUALLY 29, BUT LIKE TO SHOW HERE THAT WHAT WE HAVE HERE IS OUR EXPENSE SUMMARY.
WE'RE GOING FROM ABOUT A $5.8 MILLION DROP IN OUR EXPENSES FROM $185 MILLION IN THE PRIOR YEAR TO JUST OVER 179 MILLION IN THE CURRENT PROPOSED BUDGET YEAR.
THE MAIN DRIVERS FOR THIS, I'LL JUST WALK ACROSS THE AISLE HERE ON THESE.
THIS IS THE, SORRY, ON THE REVENUE SIDE, SO REVENUE WENT DOWN.
FOR WORK ORDERS, WE HAD A DECREASE IN OUR WORK ORDERS HERE BECAUSE PRIOR YEAR,
[00:25:02]
WE HAD COST RECOVERY FROM HURRICANE MILTON.WE HAD SENT, AND WE'VE DONE THIS A COUPLE OF TIMES, WE'VE SENT CRUISE TO FLORIDA DURING STORM EVENTS.
PART OF THAT WAS COST RECOVERY FOR WORK ORDERS RELATED TO THAT WE WERE RECOVERING FEE MONEY FROM THAT WE RECEIVED LAST YEAR, AND THEN WHILST WE HAD SOME STREET LIGHT ORDERS, SOME FAIRLY LARGE DEVELOPMENTS THAT WE COVERED LAST YEAR.
WE DON'T ANTICIPATE THAT THIS YEAR, SO ABOUT $100,000 DELTA THERE.
FOR DISTRIBUTION REVENUE, WE HAVE A DECREASE PROPOSED FROM LAST YEAR TO THIS YEAR OF JUST ABOUT 2.4 MILLION.
THAT'S RELATED TO WHAT WE ANTICIPATE IS GOING TO BE A RATE DECREASE.
WE'VE JUST RECEIVED OUR RATES, AND WE'RE GOING THROUGH THOSE.
IF THERE IS A RATE DECREASE, IT'LL BE A FAIRLY SMALL ONE ON THE ORDER OF MAYBE A PERCENT, PERCENT AND A HALF, IT'LL BE FAIRLY SMALL, BUT WE DO INCREASE THAT WE ANTICIPATE THAT WE'LL BE AVAILABLE TO DO THAT.
OUR FEES AND CHARGES, WE LOOK FOR THOSE TO INCREASE AS WE CONTINUE THE COLLECTION OF DISCONNECT AND RECONNECT FEES FOR METERS.
WE HAVE FOR OUR FFE, OUR FRANCHISE FEE EQUIVALENT, THAT'S THE 5% THAT WE GIVE TO THE CD OR WHAT WE ANTICIPATE IS GOING TO BE THE 5% NOW.
WE DO ANTICIPATE THAT TO GO UP SLIGHTLY WITH INCREASE IN OUR LOAD BECAUSE RIGHT NOW, WE HAVE A RATE THAT WE APPLY TO OUR LOAD.
AS LOAD GOES UP, THAT MEANS THERE'S MORE FRANCHISE FEE REVENUE AVAILABLE FOR THE CITY THAT WOULD GET TO THE CITY AND IT'S GOING TO BE RATHER SMALL.
OUR LOAD INCREASES BY ABOUT A HALF A PERCENT A YEAR, SO THERE'S NOT ANY BIG CHANGES IN THERE, SO THAT'S EVERYTHING THAT WE HAVE THAT'S KNOWN AND FORESEEABLE THAT WE WOULD SEE DURING THE CURRENT YEAR.
OUR T COSTS, WHICH IS OUR TRANSMISSION COST OF SERVICE REVENUE.
THAT'S FOR ALL OF OUR TRANSMISSION ASSETS THAT SIT OUTSIDE THE CITY.
THAT WAS PART OF OVER $300 MILLION WORTH OF TRANSMISSION ASSETS THAT WE BUILT TO CONNECT WITH ERCOT, TO GET US INTO ERCOT AND INTO RETAIL COMPETITION.
EFFECTIVELY, THE T COST REVENUES IS REALLY A TOLL BOOTH, SO AS OTHER ENERGY COMPANIES MOVE THEIR ENERGY ACROSS OUR SYSTEM, IT'S MANAGED BY ERCOT.
WE HAD BUDGETED LAST YEAR FOR THAT TO BE ABOUT 38.5 MILLION.
WE LOOK AT THAT TO BE A LITTLE OVER 43 MILLION THIS COMING YEAR, ACTUALLY 44.4 MILLION THAT WE'RE BUDGETING FOR THIS YEAR.
WE GOT A FAVORABLE RULING FROM THE PUBLIC UTILITY COMMISSION LAST YEAR THAT BASICALLY ENABLED US TO, WE THOUGHT WE WERE GOING TO GET A CUT.
THEY ACTUALLY GAVE US AN INCREASE THAT WE ASKED FOR, SO THAT WAS A FAVORABLE JUDGMENT ON OUR SIDE. THAT'S MORE MONEY.
THE IMPORTANT PIECE OF THAT IS THAT MEANS THAT FOR THOSE ASSETS THAT SIT OUTSIDE THE CITY AND THE DEBT SERVICE ASSOCIATED WITH IT, THE CITIZENS OF LUBBOCK ARE NOT PAYING FOR THAT.
IT'S EVERYBODY OUTSIDE THE CITY OF LUBBOCK THAT PAYS FOR THOSE ASSETS.
THAT'S A BENEFIT THAT WE HAVE FOR THE CITY, THAT WE HAVE CONTROL OF OUR SYSTEM, AND WE ALSO HAVE ASSETS THEY ARE BEING PAID FOR OUTSIDE THE CITY.
THAT BURDEN IS BEING CARRIED NOT BY THE CITIZENS OF LUBBOCK ON THAT PART OF IT.
FOR OUR INTEREST RATES, INTEREST RATES CONTINUE TO REMAIN FAIRLY HIGH.
THE FED OBVIOUSLY IS NOT BACKING OFF OF INTEREST RATES, SO INTEREST RATES APPLIED TO OUR EARNINGS, OUR RESERVE, CONTINUE TO REMAIN ROBUST.
DURING THE YEAR, WE USED A LITTLE OVER $19 MILLION IN RESERVES FROM LAST YEAR.
WE'RE GOING TO USE JUST ABOUT ALMOST $12.7 MILLION LESS THIS YEAR.
WE HAD SOME MAJOR PROJECTS WE WERE LOOKING TO GET DONE LAST YEAR.
OUR GOAL HAS BEEN TO, AS WE HAVE FUNDS AVAILABLE TO USE CASH TO FUND THOSE, AND WE'VE MAINTAINED THAT, WE CONTINUE ON THAT PATH, AND SO THAT HELPS US TO NOT HAVE TO CONTINUE TO INCUR ADDITIONAL DEBT.
THAT GETS US TO OUR 179235 ON THE REVENUE.
ON THE EXPENSE SIDE, WE HAVE AN INCREASE IN OUR COMPENSATION AND BENEFITS, ABOUT 1.6 MILLION.
IT'S AN ELECTRICAL ENGINEER ONE THAT WE'VE ADDED.
WE MADE AN ASSUMPTION ON WHAT A COLU WOULD BE.
AT THE TIME WHEN WE MADE THE ESTIMATION, CPI WAS SITTING ABOUT 3%.
WE JUST USED THAT AS A PLUG UNTIL WE KNEW WHERE WE'RE EVENTUALLY GOING TO LAMB, SO THAT'S WHAT WE HAVE IN THERE.
FOR PROCESSIONAL SERVICES AND TRAINING, WE HAD A NERC.
NERC REQUIRED TESTING OF ALL OF OUR SUBSTATION TRANSFORMERS FOR THEIR OIL TESTING.
IT'S A RELIABILITY TESTING TO MAKE SURE THEY'RE OPERATING PROPERLY.
[00:30:02]
WE HAD A ONE TIME EXPENSE OF THAT THAT WE WILL NOT INCUR THIS YEAR, WE HAD SOME OTHER EXPENSES RELATED TO THAT.>> HEY, HARVEY, I'M NOT GOING TO LET YOU GET AWAY WITH CALLING IT A NERC.
>> IT'S NATIONAL ELECTRIC RELIABILITY CORPORATION.
>> THAT'S THE ARM OF THE FEDERAL ENERGY REGULATORY COMMISSION, FERC, THAT BASICALLY MANAGES THE SAFETY AND RELIABILITY OF ELECTRIC UTILITIES AND THE TRANSFER OF ENERGY.
SORRY ABOUT THAT. I JUST THREW A NERC, FERC THING, SO I KNOW EXACTLY.
[LAUGHTER] NO. EXCELLENT QUESTION.
OUR CITY OF LUBBOCK UTILITY REIMBURSEMENT IS INCREASED $1.7 MILLION TO THE CITY.
THAT'S THE SERVICES THAT WE PROVIDE FOR THE BILLING AND THE COLLECTION OF REVENUE FOR WATER, WASTEWATER, STORMWATER, AND SOLID WASTE.
WE STILL DO THAT. THAT'S TRUE.
I ALMOST WENT AND SAID THAT'S NOT, BUT IT IS.
PART OF THAT IS THE COST ASSOCIATED WITH OUR ORACLE SYSTEM.
WE'RE DOING SOME BEEFING UP IN OUR ORACLE SYSTEM, SOME OTHER THINGS, TOO.
OTHER MAINTENANCE AND OPERATION.
WE HAD SOME SUNDRY COSTS THERE THAT WE PUT IN THERE FOR TREE TRIM.
TREE TRIMMING IS UP A LITTLE BIT.
VEGETATION MANAGEMENT IS A VERY CRITICAL ASPECT, MEANING RELIABILITY IN A UTILITY.
THAT'S ONE OF THE NUMBER 1 CAUSES TO HAVE SYSTEM OUTAGES IS IF YOU DON'T MAINTAIN YOUR VEGETATION.
WE'VE SEEN OBVIOUSLY FROM CENTER POINT, WHAT CAN HAPPEN IF YOU DON'T.
THERE CAN BE ISSUES OF THAT, SO WE MAINTAIN THAT.
THAT'S PART OF OUR SYSTEM RELIABILITY THAT WE MAINTAIN.
FOR DEBT SERVICE, DEBT SERVICE HAS DROPPED 8.4 MILLION.
A LARGE CHUNK OF THAT WAS WE MADE A PREPAYMENT ON OUR 2015 REVENUE BOND, AND THAT WAS A $7.2 MILLION ISSUANCE THAT WAS ON ITS 10-YEAR CALLABLE PERIOD.
WE WENT AHEAD AND EXTINGUISHED THAT.
THAT WAS A VERY GOOD FINANCIAL MOVE FOR US.
THE COUPON RATES FOR THAT THAT WE OWED AN INTEREST WERE AT A STRAIGHT 5% FOR THE NEXT 10 YEARS, AND WE'RE ONLY EARNING ABOUT 4.3% OR SO IN OUR RESERVES.
IT MAKES SENSE THAT WHEN WE HAVE THAT AVAILABLE, TWO THINGS, IT SAVES US INTEREST, AND THE OTHER PART IS IT ALSO ALLOW FREE UP CASH FLOW FOR FUTURE YEARS.
THEN THE OTHER PART TOO, IS IT ALSO INCREASES OUR CREDIT WORTHINESS.
LAST YEAR, WE GOT FROM ALL THREE AGENCIES.
WE GOT A RATING INCREASE FROM FITCH, FROM STANDARD AND POOR'S, AND MOODY'S, AND SO WE'RE NOW UP INTO AA TERRITORY FOR THE FIRST TIME IN ALMOST 12 YEARS.
WE'RE DOING VERY WELL THERE AS WELL.
FFE, SO OUR FRANCHISE FEE EQUIVALENT, THAT EXPENSE GOES UP $131,000 JUST AS IT CORRESPONDS ON THE OTHER SIDE WITH THE INCREASE IN THE REVENUE.
WE INCLUDE THAT IN OUR RATES THAT WE COLLECT.
OUR PILOT, OUR PAYMENT IN LIEU OF TAX IS GOING UP 46,000, AND AGAIN, THAT'S A FUNCTION OF WHAT WE'RE ANTICIPATING AT THIS POINT AND IS JUST A SMALL CHANGE IN OUR ASSETS TO COVER AD VALINE TAX.
OUR CAPITAL IMPROVEMENT PLAN EXPENSE IS GOING UP JUST ABOUT 5.2 MILLION, AND THAT IS WHAT WE CASH FUND OR WE'RE USING THE CASH FUND OUR CAPITAL.
WE'RE LOOKING TO INCREASE THAT.
WE'VE GOT A NUMBER OF PROJECTS THAT ARE ON TAP FOR THIS YEAR AND SOME MAJOR PROJECTS, SO WE CONTINUE TO WORK WITH THAT.
WE'LL SHOW YOU THAT IN A LITTLE MORE DETAIL, AT LEAST ACROSS WHERE WE'RE HEADED WITH OUR CAPITAL ON THE NEXT PAGE, NOT YET.
THEN ON TRANSFERS, ACTUALLY, WE'VE GOT A DECREASE IN $2.4 MILLION THERE AS WELL.
LET'S GO AHEAD AND GO TO THE NEXT SLIDE.
>> THIS WILL SHOW YOU A LITTLE BIT HIGH LEVEL, EVERYTHING THAT WE'VE REALLY TALKED ABOUT HERE.
I THINK SOME HIGHLIGHT POINTS OF THIS IS IF WE GO DOWN YOU CAN SEE WHERE THE INTEREST RUNNING, SO ON OUR REVENUE.
YOU CAN SEE WHERE OUR FUNDING SOURCES ARE GOING.
YOU CAN SEE OUR INTEREST RATES.
OUR INTEREST EARNINGS ARE GOING UP.
WE HAVE OUR RENTALS AND RECOVERIES.
A BIG CHUNK OF THAT HAS TO DO WITH THE FEE THAT WE CHARGE OTHER COMMUNICATION COMPANIES TO ATTACH THEIR EQUIPMENT TO THE CITY OF LUBBOCK POLES.
THERE'S OUR DISTRIBUTION REVENUE SYSTEM, SO THAT IS OUR DELIVERY RATE THAT WE CHARGE OUR CUSTOMERS.
IT'S INTENDED TO COVER THAT 129.5 MILLION PLUS THE FRANCHISE FEE EQUIVALENT OF $13.2 MILLION.
TOGETHER, THAT'S A LITTLE OVER $142 MILLION.
[00:35:03]
THAT'S WHAT WE COLLECT IN OUR RATES.AS WE GO DOWN, I THINK AN IMPORTANT THING IS WE HAVE OUR ERCOT HOLD HARMLESS CREDIT.
PART OF THE COST OF US GOING INTO ERCOT WAS THE AGREEMENT OF A FIVE YEAR PERIOD OF $110 MILLION THAT WE WOULD PROVIDE A BENEFIT TO THE TRANSMISSION OWNERS OF ERCOT.
WE DIVIDED THAT BY FIVE, SO IT'S A $22 MILLION A YEAR CREDIT THAT WE STARTED BACK IN 2022.
WE'RE GOING TO CARRY THAT THROUGH.
THAT ENDS IN FEBRUARY OF 2027, AND THAT MEANS THAT'S EFFECTIVELY $22 MILLION A YEAR STARTING IN FEBRUARY OF 27 THAT WE CAN KEEP NOW FOR THE BENEFIT OF OUR PAYERS.
YOU CAN SEE THAT DOWN THERE, PROBABLY IT'S ABOUT HALFWAY DOWN ON THE FUNDING SOURCES.
YOU'LL SEE THAT LINE GO FROM 22 MILLION, 22,000,007.3, AND THEN IT STOPS.
I'LL GO DOWN TO THE USE OF GENERAL RESERVE.
AGAIN, THERE'S WHERE YOU SEE THE SIGNIFICANT DROP OF OVER $12 MILLION THAT WE USED A LITTLE OVER $19.1 MILLION IN THE CURRENT YEAR FOR PROJECTS, WE'LL USE ABOUT $6.4 MILLION THIS YEAR, ANOTHER 7 MILLION NEXT YEAR AND 3.3 THE YEAR AFTER.
THEN AT THAT POINT, WE ARE SUFFICIENT TO BE ABLE TO STOP DIPPING INTO THAT.
THE BIGGEST CONTRIBUTOR TO THAT IS THE FACT THAT WE'LL HAVE THE HOLD HARMLESS THAT FALLING OFF AT THAT POINT.
DOWN TO DEPARTMENTAL EXPENSES.
YOU'LL SEE THAT YEAR OVER YEAR, THEY REMAIN FAIRLY CONSTANT.
THEY ACTUALLY GO DOWN SOMEWHAT FROM 90.9 DURING THE CURRENT YEAR DOWN TO ABOUT 90.4.
THEY GO SLIGHTLY LESS AND THEY REMAIN FAIRLY STABLE. ON THE NEXT SLIDE.
OUR DEBT SERVICE ACTUALLY DROPS IN THE CURRENT BUDGET YEAR.
THAT'S A REFLECTION OF THE 2015 REVENUE BOND THAT WE EXTINGUISHED, AND YOU'LL SEE THE DROP IN PAYMENTS THERE.
THAT ACTUALLY REPRESENTS CASH FLOW THAT HAS BEEN FREED UP.
THE NEXT YEAR, YOU'LL SEE IT GO UP, AND THAT IS IN RELATION TO WHAT WE WILL BE PROPOSING IS THE BUILDING OF PARTICIPATING IN A PROJECT TO BUILD A WEST SIDE TRANSMISSION LOOP, AND THAT WILL BE IN PARTNERSHIP WITH ANOTHER UTILITY, WE BELIEVE.
THAT PROJECT WE WOULD BE NEEDING TO TAKE OUT A BORROWING OF THAT.
WE ESTIMATE THAT BORROWING TO BE SOMEWHERE NEAR $120 MILLION.
THAT WOULD BE T COSTS RELATED.
THE COST THE DEBT SERVICE OF THAT, WE GO INTO OUR TRANSMISSION COST OF SERVICE.
WE'LL LOOK TO HAVE A FULL FILING OF THAT WHEN THAT'S COMPLETED IN 2028, AND THEN THAT WILL IN TURN GET CARRIED INTO OUR T COST REVENUE LINE, WHICH IS ABOUT 44.4 RIGHT NOW.
THAT WILL INCREASE THAT WHAT WE BELIEVE COULD BE IF ALL GOES WELL WITH THE PUC, ANOTHER $7 MILLION.
THEN THAT'S WHAT GOES TO IN TURN PAY THAT DEBT SERVICE.
THE IMPORTANT POINT THERE IS, THAT TRANSACTION AND THAT DEBT DOES NOT INCREASE OUR RATES.
THAT STAYS ON THE TRANSMISSION COST OF SERVICE SIDE.
THEN FINALLY, WE HAVE ON THE DEBT SERVICE UP ABOVE THE THIRD LINE DOWN, DEBT SERVICE EARLY RETIREMENT.
WE HAVE PROJECTED OUT ACTUALLY THREE YEARS OUT FROM TODAY OR TWO YEARS BEYOND THE BUDGET PERIOD TO LOOK AT EXTINGUISHING THE 2014 AND 2016 REVENUE BONDS.
WE'LL LOOK AT THAT AND THAT'S GOING TO BE CONSIDERED IN THE FUTURE.
THEN I'LL GET TO THE LAST LINE OF REVENUE, BASICALLY OUR RESERVE POSITION.
AT THE END OF THIS FISCAL YEAR, WE ANTICIPATE TO BE AT ABOUT $26,000,000 OVER OUR MINIMUM REQUIREMENT.
THAT'S 90 DAYS CASH IS WHAT THAT REFLECTS.
AS WE SPEAK, WE'RE SITTING JUST A LITTLE OVER 170 DAYS RIGHT NOW, SO WE'RE DOING FAIRLY WELL ON CASH.
AT THE END OF OUR PROPOSED BUDGET YEAR, WE'LL BE JUST ABOUT 21.2, 21.3, THEN DOWN TO 10 MILLION, THEN DOWN TO 5.4 MILLION AT THE LOWEST POINT, AND THEN WE START TO BUILD THAT RESERVE BACK AND HOLD HARMLESS FALLS OFF, AND YOU CAN SEE THAT GOING UP TO 18 AND THEN OUT IN THE FUTURE YEARS.
WITH THAT, I WILL STOP AND REFER TO THE CITY COUNCIL FOR ANY QUESTIONS.
>> HARVEY, ON THE HOLD HARMLESS,
[00:40:02]
THAT DROPS OFF, YOU SAID IN FEBRUARY OF NEXT YEAR, IS THAT?>> YOU MENTIONED THE INCREASE IN THE COST TO TREE TRIMMING?
>> IS THAT IN PARTNERSHIP WITH PARKS AND REC? IS THAT DOING SOME WORK WITH THEM OR JUST.
>> NO. THAT'S WORK FOR AROUND OUR SUBSTATIONS AND INTO OUR WIRES AND ON OUR POLES.
AS THE TREE AS TREES AND VEGETATION GROWS UP NEXT TO OUR INFRASTRUCTURE, WHETHER IT'S A SUBSTATION OR WHETHER THAT'S THE POLES AND LINES, WE NEED TO MAINTAIN A BUFFER OF THAT SO THAT IN THE EVENT OF A WINDSTORM OR ANYTHING LIKE THAT.
THAT'S WHERE YOU GET A COMMON OUTAGE IS WHEN A LIMB OR SOMETHING COLLAPSES ON A LINE, CROSSES A PHASE, A SHORT CIRCUIT AND THEN POWER GOES OUT.
THAT'S TO MAINTAIN THE ASSURANCE THAT WE KEEP THAT SAFE.
>> ANY OTHER QUESTIONS? THANK YOU, HARVEY.
>> GREAT. THANK YOU. [BACKGROUND]
>> COUNSEL, WE'LL PICK BACK UP WITH STORMWATER.
STORMWATER REVENUE SUMMARY 25.7 FOR THE CURRENT YEAR TO 23.6 IN THE NEW YEAR.
THE REVENUE IS DECREASING, AND THAT IS JUST BASED ON UPDATED CURRENT YEAR PROJECTIONS OF WHERE THAT'S GOING, SO NO CHANGE IN THE RATE.
SOME OF THIS IS NOT QUITE AS MUCH GROWTH AS WHAT WE ANTICIPATED WHEN WE BUILT THE BUDGET LAST YEAR.
INTEREST EARNINGS ARE GOING DOWN, NOT BECAUSE OF THE INTEREST RATE, BUT BECAUSE WE'RE USING CASH ON HAND.
EXCESS RESERVE USE FOR THE NEW YEAR HAS GONE DOWN SLIGHTLY BECAUSE WE WERE ABLE TO DO QUITE A BIT OF WORK IN THE CURRENT YEAR.
MOVE OVER TO THE EXPENSE SIDE.
WE'RE HAVING COMP AND BENEFIT DECREASES.
WE DO HAVE SOME INCREASES BECAUSE OF CERT PAY TMRS, ETC., EVERYTHING WE TALKED ABOUT YESTERDAY.
ON MAINTENANCE AND OPERATIONS.
THIS IS A TRANSFER BACK TO ENGINEERING, AND THIS IS MORE OF YOUR CITY ENGINEER AND HIS TEAM DOING WORK IN HOUSE.
WE ARE CONTINUING TO SEE DEBT ROLL OFF HERE.
THE PILOT FEES ARE GOING UP JUST VERY SLIGHTLY.
THAT'S JUST THE VALUES OF THE FIXED ASSETS.
THE INCREASE COMING FROM THE BUSINESS OFFICE AT LP&L, AND THEN OTHER TRANSFERS IS DOWN IN NEARLY $5 MILLION.
REVENUE VERSUS EXPENSE, HERE IS THE MODEL.
IT WILL BE PRETTY SIMILAR TO WHAT WE LOOKED AT A MOMENT AGO.
THE FIRST COLUMN WITH THE NUMBERS IS YOUR CURRENT YEAR.
THEN YOUR PROPOSED YEAR, YOU SEE THAT SAME CHANGE IN REVENUE FROM 23.8 DOWN TO 23.6.
AGAIN, THAT'S YOUR GENERAL METERED REVENUE, SLIGHT DECREASE IN INTEREST.
COME ON DOWN THROUGH YOUR EXPENDITURES.
SAME THINGS HERE YEAR OVER YEAR TOTALS.
THAT'S 25.7 MILLION, NOW THE NEW YEAR 21.0, AND LEAVING US WITH 2.5 MILLION OF REVENUE OVER EXPENDITURES, WHICH FALLS DOWN TO THE BOTTOM OF THE PAGE, WHICH IS WHERE WE LOOK AT THE RESERVES.
THIS ONE ALSO REQUIRES 20% OF YOUR OPERATING COSTS TO BE HELD IN RESERVES.
WE ENDED LAST YEAR, WE PREDICT TO END THE YEAR AT 4.99, BASICALLY 5 MILLION, BRINGING THAT BACK UP TO 7.5, AND THEN YOU CAN SEE HOW IT PREDICTS OVER THE YEARS.
AGAIN, I THINK MORE IMPORTANTLY, ON THE RATES, NO CHANGES TO THE RATES HERE.
>> ANY QUESTIONS? JART, I NOTICED THAT THE PAY AS YOU GO FUNDING INTO THE CAPITAL IMPROVEMENTS GOES FROM 4.4 DOWN TO 9,000 AND THEN BACK UP AGAIN.
CAN YOU EXPLAIN THAT? WHAT ARE WE?
>> WE'RE BUILDING BACK UP TO A LOT OF CASH IN HAND TO BE ABLE TO DO THAT IN THE FOLLOWING YEAR.
WE DON'T HAVE AS MUCH NEED THIS YEAR, BUT WE KNOW WHAT'S COMING.
>> THE CAPITAL PROGRAM FOR THE YEAR.
325,000 FOR WATERSHED BOUNDARY AND DRAINAGE STUDIES.
IT WILL ALWAYS BE A FUNCTION AS LONG AS EITHER A,
[00:45:01]
WE'RE MAKING DRAINAGE IMPROVEMENTS THAT ALLOWS PROPERTIES TO COME OUT OF THE FLOODPLAINS OR B TO BE ABLE TO ACCOMMODATE GROWTH AND MANAGE THE WATER.UPLAND AND 66 STREET PLAYA DRAINAGE IMPROVEMENTS.
THAT IS A PROJECT THAT IS CURRENTLY UNDER CONSTRUCTION.
THE MAJORITY WAS FUNDED OVER THE LAST TWO YEARS.
WE NEED JUST A LITTLE BIT MORE TO COME IN AND FINISH THAT ONE OUT.
WE RUN INTO LOTS OF THINGS IN OUR EASEMENTS THAT WE'RE NOT SUPPOSED TO BE IN OUR EASEMENTS THAT WE'RE WORKING THROUGH.
I'M SORRY. ANYWAY, STORMWATER SYSTEM IMPROVEMENTS? [LAUGHTER] YOUR GENERAL ONGOING HERE, 625,000 STORMWATER SYSTEM REHABILITATION AND MAINTENANCE, ALSO ONGOING.
DRAINAGE IMPROVEMENT FOR ARTERIAL PROJECTS, THAT IS FUNDING AVAILABLE THAT WE HAVE AS WE WORK ON THESE MAJOR PROJECTS FOR THE DRAINAGE PIECE OF IT.
YOU'LL NOTICE THAT ALL BUT THE LITTLE BIT OF THE STORM DRAINAGE ON BROADWAY, ALL OF IT IS IN THE OTHER CATEGORY, AS FAR AS YOUR SOURCE OF FUNDING, THOSE ARE ALL PRIOR PROJECTS THAT WE'RE CLOSING OUT AND BASICALLY RECAPTURING WHAT'S LEFT WITHIN THEM, SO NO NEW ASSOCIATED DEBT ON THIS ONE.
LET'S GO TO LAKE ALAN HENRY, AND AGAIN, NEARLY 96% FULL.
REVENUE IS INCREASING OUT HERE BECAUSE OF ENTRANCE AND CAMPING FEES AND ANNUAL PERMITS.
I DON'T KNOW WHO'S HAD A CHANCE TO GET OUT TO THE LAKE DURING THE SUMMER MONTHS, BUT IT IS VERY WELL UTILIZED.
COMPENSATION AND BENEFITS GOING DOWN SLIGHTLY, LARGELY DUE TO TERMINAL PAY THAT WAS OFFSET BY THE INCREASE IN HEALTH PREMIUMS AND DENTAL.
LITTLE BIT ON THE VEHICLES FOR MAINTENANCE.
PROFESSIONAL SERVICES IS DOWN.
WE NO LONGER HAVE THE INTER LOCAL CONTRACT WITH KARZA COUNTY.
THAT WAS LARGELY AT THEIR REQUEST.
SCHEDULED CHARGES ARE DOWN DUE TO ELECTRICITY AND PROPERTY INSURANCE.
FUN FACT, LAKE ALAN HENRY'S ALWAYS BEEN AN ERCOT.
TOTALLY DIFFERENT FROM ANYTHING WE DO UP HERE.
THE FUND LEVEL EXPENSES ARE GOING UP BECAUSE OF THE TRANSFER TO A FLEET, WE'VE GOT SEVERAL VEHICLES THAT WE NEED TO REPLACE OUT THERE.
IF YOU COME ACROSS AND LOOK AT THAT, YOU'VE GOT 772,000 IN REVENUE FOR THE NEW BUDGET.
THIS ONE'S ON THE FAR RIGHT HAND SIDE VERSUS 821 PRIOR YEAR, AND THEN COME DOWN SAME NUMBERS THAT BALANCE OUT ON YOUR EXPENSES.
PRIOR YEAR, YOU GAVE US THE DOLLARS TO BUILD A DUMP STATION FOR RVS.
WE'RE GOING TO HAVE THAT FINISHED HERE PRETTY QUICK.
WE NEED TO GET A NOMINAL FEE BACK FOR THE USE OF THAT, SO THE 5-15 IS BASED ON THE SIZE OF THE RIG THAT'S USING IT.
[BACKGROUND] YOU GO TO AIRPORT.
ON THE REVENUE SIDE, ALL IN FOR THE CURRENT YEAR, 20.3 MILLION UP TO 21.2 MILLION FOR THE FOLLOWING YEAR.
THE HANGAR RENTALS GO UP EVERY YEAR, AND IN FACT, EVERY LEASE AT THE AIRPORT, AND THERE ARE A LARGE NUMBER OF THEM ARE ON A SCHEDULE THAT CHANGES YEAR OVER YEAR.
WE'RE NOT ASKING FOR SOMETHING NEW OR DIFFERENT.
IT'S ALREADY IN THOSE DOCUMENTS.
PARKING REVENUES SEEM TO BE AGAIN GOING UP.
WE'RE PRETTY PLEASED WITH THAT.
THE PFC, WHICH IS PASSENGER FACILITY CHARGE, AND THE CFC, WHICH IS THE CUSTOMER FACILITY CHARGE.
THOSE ARE GOING UP A LITTLE BIT BASED ON THE ANNUAL DEBT SERVICE.
MISCELLANEOUS REVENUE WENT DOWN A LITTLE BIT ON INTEREST EARNINGS, BUT WE ALSO SPENT SOME CASH CAPITAL OVER THE LAST YEAR THERE.
GO TO THE EXPENSE SIDE, 18.4 UP TO 21.2.
YOU'VE GOT A LITTLE BIT OF A CHANGE IN YOUR COMPENSATION AND BENEFITS.
WE'RE ABLE TO TAKE MAINTENANCE AND OPERATIONS DOWN.
WE BOUGHT A NEW STREET SWEEPER DEDICATED TO THE AIRPORT AND SOME OTHER EQUIPMENT THAT WE DON'T HAVE TO BUY AGAIN THIS YEAR.
AGAIN, YOU'VE GOT AN INCREASE IN YOUR DEBT SERVICE, AND THEN OUR TRANSFER TO ARFF, WHICH IS AIRPORT RESCUE FIRE FIGHTING.
WE TALKED ABOUT IT YESTERDAY WITH THE PFAS PROJECT.
ARFF IS UP, AS WELL AS THE TRANSFER TO CAPITAL BEING UP.
YOU SEE THE NEW BUDGET YEAR ON THE LEFT WITH THE BLUE BOXES.
[00:50:06]
TOTAL FUNDING SOURCES AGAIN, 21.2, CARRY YOUR DEPARTMENT EXPENSES DOWN FOR 10.7.THEN YOU'VE GOT YOUR NET DEBT SERVICE, THE VEHICLE, AND EQUIPMENT DEBT, INDIRECT AIRPORT RESCUE AND FIREFIGHTING, CAPITAL TRANSFER OF 3.672, ALL IN YOUR TOTAL EXPENSES AT 21,251.
>> VERY BOTTOM OF THE PAGE OR YOUR RESERVE CALCULATIONS.
WE'LL START THE YEAR WITH 24.8 MILLION.
TAKE AWAY 4.2 MILLION AS THE REQUIRED RESERVE LEAVING AVAILABLE 20.5.
REMEMBER THE AIRPORT EXISTS AND THEY DON'T SHOW UP ON HERE, BUT YOU EXIST IN A UNIQUE ENVIRONMENT WHERE THERE ARE CERTAIN GRANTS THAT COME TO THE AIRPORT ON A FORMULA BASIS, CALL THE ENTITLEMENT GRANTS.
YOU HAVE SOME THAT KELLY AND HER TEAM HAVE BEEN VERY SUCCESSFUL IN GETTING THAT ARE CALLED DISCRETIONARY GRANTS.
LARGELY, THAT'S WHEN SOME OTHER AIRPORT CAN'T SPEND THE GRANT MONEY THEY WERE GIVEN.
KELLY AND HER TEAM IS ALWAYS READY TO STEP IN AND SAY, GIVE IT TO US.
YOU HAVE TWO OTHER SOURCES IN THE AIRPORT.
AIRPORT HAS ITS OWN VERSION OF ARPA.
IT IS NOT RELATED TO WHAT WE'VE BEEN DOING THROUGH THE COUNCIL.
IT'S DEDICATED TO THE AIRPORT.
THEY ALSO HAVE RECEIVED FUNDING THROUGH THE B-I-L OR THE BIL OR THE BIPARTISAN INFRASTRUCTURE LAW, WHATEVER WE'RE CALLING IT TODAY.
WHAT YOU'RE SEEING ON THESE SLIDES HAS BEEN THE EARNED INCOME.
FOR CAPITAL, PAVEMENT MAINTENANCE PHASE 2, $200,000 IN CASH, ONGOING PROJECT THAT WILL LIVE FOREVER.
PROPERTY IMPROVEMENTS, PHASE 2, 400,000 IN CASH.
IMPROVEMENTS TO THE FREIGHT ROAD. THERE WE GO.
FREIGHT ROAD AND PARKING IMPROVEMENTS 500, PERIMETER ROAD, 885,000.
IF YOU'VE NEVER HAD A CHANCE TO TAKE A DRIVE AROUND THE PERIMETER ROAD WHILE YOU'RE RIDING WITH ONE OF THE AIRPORT PEOPLE, YOU'LL BE SHOCKED AT HOW FAR IT IS AROUND THE AIRPORT.
YES, PEOPLE DO GET IN THERE AND TRY TO DO IT IMPROPERLY.
RENTAL CAR FACILITY IMPROVEMENTS AT 200.
I BELIEVE THAT'S WORKING ON THE ROOF OF THAT STRUCTURE.
MOVING OVER, WE NEED TO GET IN LINE FOR THE NEXT NEW RF TRUCK, 1 MILLION CASH, SNOW REMOVAL EQUIPMENT AT 7:50 IN CASH.
PASSENGER BOARDING BRIDGE, THESE WILL EITHER BE REPLACED OR REFURBISHED, LIKELY REPLACED.
THE 675 IN CASH, THAT IS YOUR MATCH.
THE 12.8 IS THE GRANTS THAT COME ON IT IN THERE.
SOME HEAVY EQUIPMENT REPLACEMENT, SOME EQUIPMENT AND VEHICLE REPLACEMENT, ALL IN 17.7 MILLION IN CAPITAL, 4.8, NEARLY 4.9 IN CASH, 12.8 THROUGH THE GRANTS. DR. WILSON.
>> ANY PLAN TO EXPAND PARKING AT OUR AIRPORT? I OBVIOUSLY NOT WITHIN THIS YEAR, BUT JUST LONG TERM.
I THINK THAT'S THE BIGGEST COMPLAINT THAT I SEE FROM AIRPORT IS EVERY TIME PEOPLE ARE GOING OUT THERE, THE PARKING GARAGE IS FULL, THE FLAT, SURFACE LOT IS FULL ON LONG TERM.
>> WE'VE ACTUALLY HAD SOME CONVERSATIONS WITH AN OUTSIDE PARTY OVER POTENTIALLY NOT GARAGE, BUT COVERS AND MAKING THAT WORK, EXPANDING IT BEYOND THE FOOTPRINT AND IT'S AT TO GET NET NEW SPACES, WE'RE GOING TO HAVE TO GO UP, AND THAT'S GOING TO BE SEVERAL YEARS OUT BECAUSE IT'S THE QUESTION OF, AND WE HAVE A SPOT.
WE'VE PRESERVED A FOOTPRINT THAT YOU COULD BUILD A NEW GARAGE THEN WHEN YOU'RE DONE TO COME AND TAKE THE OLD ONE DOWN.
OR RATHER LEAVE THAT AS OPEN, SHORTER TERM PARKING, TAKE THE GARAGE OUT, BE WITHOUT IT FOR A BIT OF TIME AND THEN PUT A BIGGER GARAGE UP.
THEY'RE ALL ON THE DECK. THEY'RE NOT IN THE NEXT PROBABLY THREE YEARS.
THEN WE STILL DO HAVE SHELTER PARK AND THE UTILIZATION DOWN THERE HAS GONE UP.
>> I JUST HAD A PRAISE FOR KELLY AND HER TEAM.
THE AIRPORT IT LOOKS PHENOMENAL.
IT'S RUNNING I MEAN, AMAZINGLY SMOOTH.
IT'S NICE TO HAVE I HAVE BUSINESS PEOPLE COME IN AND AND THEY TELL ME HOW GREAT OUR AIRPORT IS, HOW CLEAN IT IS, AND HOW WELL IT OPERATES. KEEP UP THE GOOD WORK.
AGAIN, THIS IS WHAT WE TALKED ABOUT UP FRONT.
THESE ARE BUILT IN TO YOUR VARIOUS LEASES AND SO FORTH.
[00:55:03]
THAT'S THE ACTUAL CHANGE PER SQUARE FOOT PER MONTH ON THOSE.CARRIES OVER. THERE'S QUITE A FEW OF THEM.
WHAT YOU DO SEE ON THE BOTTOM OF THIS PAGE, YOU START GETTING INTO THE RENTAL CAR PARKING.
THIS IS A CHARGE TO THE RENTAL CAR AGENCIES FOR PARKING ON OUR PART OF IT, AND THEN YOU SEE THE LANDING FEE CHANGES THAT ARE PROPOSED ON THE LAST TWO LINES, AND THAT'LL CLOSE OUT AIRPORT.
OUTLINED IN THE BLUE ON THE RIGHT HAND SIDE.
YOU SEE THE PROPOSED BUDGET, IMMEDIATELY TO THE LEFT OF IT, OF COURSE, IS THE CURRENT BUDGET.
TOTAL OPERATING REVENUES THIS YEAR, 9.465, NEW YEAR 9.45.
SOMETHING TO KEEP IN MIND AS GRANTS BEGIN TO WIND OUT OVER THE FUTURE, NOT NEXT YEAR, BUT LATER OUT YEARS, AS THOSE WIND DOWN.
YOU'RE GOING TO BE LOOKING AT INCREASED TRANSFER FROM THE GENERAL FUND.
THAT'S WHAT CITY TRANSFER IS, OR SOME KIND OF A MODIFICATION IN SERVICE OR A COMBINATION OF BOTH.
WE'RE NOT THERE YET, BUT IT IS COMING.
CHRIS MANDRELL AND HIS TEAM HAVE USED A LOT OF THESE DOLLARS THAT CAME RUNNING IN TO TREMENDOUS ADVANTAGE.
THEY'VE DRAMATICALLY LOWERED THE AGE OF THE FLEET.
THEY'VE DONE A LOT OF GOOD THINGS.
THEY STARTED THE MICRO VERSION.
JUST KNOW THAT THAT'S GOING TO COME IN AND CHANGE.
YOU HAVE THE 9.45 IN YOUR OPERATING REVENUES, YOU COME IN TO THE NEXT SET, AND THOSE ARE YOUR VARIOUS GRANTS, YOUR PRIOR YEAR GRANT CARRYOVERS, THINGS OF THAT NATURE, TOTAL OF 19.7, AND THEN YOU GO DOWN TO THE EXPENSE LINE ITEM AND COME OUT AT THE SAME NUMBER, 19.69. QUESTIONS ON CITIBUS.
>> ON THE, AND I NOTICED THIS THERE'S GOING FROM FUND TO FUND AND DIFFERENT THINGS.
THERE'S A LOT OF DISCREPANCIES OR DIFFERENCES IN THE PROFESSIONAL SERVICES AND TRAINING.
I NOTICE WHERE THAT GOES UP LIKE A COUPLE OF HUNDRED THOUSAND.
IS THERE ANY EXPLANATION FOR THAT?
>> PROFESSIONAL SERVICES AND TRAINING CURRENT YEAR IS 1.436 MILLION.
I BELIEVE A BIG PART OF THAT CHANGE IS THE VARIOUS SOFTWARES THAT THEY USE, MAINLY FOR DISPATCHING, THE MICROTRANSIT, AND STUFF LIKE THAT, BUT I WOULD BET EITHER BILL OR CHRIS. MICHAEL'S HERE.
>> I SHOULD HAVE SAID NICE THINGS ABOUT MICHAEL INSTEAD OF CHRIS.
>> NO PROBLEM. YES. HE WAS CORRECT.
MOST OF THAT, THE PROFESSIONAL SERVICE AND TRAINING WENT UP AND PART OF THAT'S THE INCREASE FOR CITY IT CHARGES THAT WE GET YOU'VE SEEN THAT ACROSS EVERYBODY ELSE, OUR CROSS WENT UP FOR CITY IT CHARGES.
THE OTHER PART IS FROM OUR TECHNOLOGIES THAT WE'VE PUT INTO PLACE SWIFTLY AND SPARE AND THOSE KIND OF THINGS.
THEN ALSO, WE HAD A CONTRACT FOR OUR SHELTER MAINTENANCE AND WENT UP ABOUT 20,000.
BUT THAT'S WHAT MAKES UP THE DIFFERENCE THERE IN THE FIRST ROOM TECHNICAL. THANK YOU.
>> FUN FACT, NO CITIBUS EMPLOYEES ARE CITY OF LUBBOCK EMPLOYEES.
YOU ACTUALLY HAVE A THIRD PARTY THAT RUNS THAT, YOU PROVIDE A PAYMENT TO THEM IN EXCHANGE, THEY MAKE ALL THAT HAPPEN.
SOME FEE CHANGES ARE PROPOSED AND SOME ELIMINATION OF FEES ARE PROPOSED.
THEN ON A FARTHER BASIS, PARATRANSIT FIVE AND ON THE LONGEST RUNS 10.
YOU SEE THAT CHANGES OR NOT CHANGES, BUT ACTUALLY CREATING THE ON DEMAND FEES, AND THEN THE ELIMINATION OF THE FOUR AT THE BOTTOM OF THE PAGE.
WHAT MICHAEL AND CHRIS AND TEAM ARE DOING, THEY KNOW WHERE THE BIG DEMAND IS RIGHT NOW AND IT'S THE ON DEMAND AND THE PARATRANSIT, AND THEY'RE TRYING TO JUST HELP US COVER THE COSTS.
YOU'LL NEVER GET THERE WITH FEE BOXES, BUT YOU CAN DO WHAT YOU CAN TO OFFSET IT.
I WANT TO GO TO THE CEMETERY. YOU DO SEE SOME CHANGES HERE.
WE HAVE A DECREASE IN OUR LOT AND OUR MAUSOLEUM.
[01:00:04]
WE ARE HAVING TO UP THE GENERAL FUND TRANSFER TO HELP BALANCE THIS BUDGET, AND THEN PULLING DOWN A LITTLE BIT ON USING OUR AVAILABLE RESERVES.SO 83 ON THE REVENUE SIDE, 800 THAN TO ONE POINT.
GO OVER TO THE EXPENSE SIDE, YOU SEE LARGELY THE SAME.
OUR COMPENSATION AND BENEFITS IS GOING DOWN A BIT.
MAINTENANCE AND OPERATIONS IS UP.
MAINLY, THAT IS THE MOWING CONTRACT.
CEMETERY LOOKS BETTER THAN I THINK IT HAS LOOKED IN YEARS WHEN WE GET THAT IRRIGATION PROJECT FINISHED, IT'S GOING TO BE EVEN BETTER.
BUT BECAUSE OF THE IRRIGATION PROJECT, YOU DO HAVE THE DEBT SERVICE PAYMENT THAT WE'VE NOT HAD PRIOR.
THEY ARE ALSO REPLACING A COUPLE OF VEHICLES.
THE LAST LINE THAT 92889, THE $2 MILLION.
THAT'S WHAT YOU DID A YEAR AGO.
YOU ALSO HAD PREVIOUSLY FUNDED PERIMETER FENCING.
NOW WE'RE ASKING JUST FOR $30,000 IN CASH MONEY TO JUST KEEP UP WITH THE GENERAL CARE AND FEEDING OF A CEMETERY THAT IS ACTUALLY OLDER THAN THE CITY IS.
THE CEMETERY WAS CREATED MANY YEARS BEFORE LUBBOCK EXISTED.
CIVIC CENTER. OVERALL, YOU'RE GOING TO SEE A REDUCTION HERE, AND IT'S REALLY FROM THE UTILIZATION OF RESERVES.
BUT 4.3 MILLION DOWN TO 3.9 ON THE REVENUE SIDE.
LISA AND HER TEAM DO EXPECT EVENTS TO INCREASE, BUT MOST OTHER SOURCES TO REMAIN FLAT.
THEY'VE ALSO HAD A VERY SLIGHT DECREASE IN INTEREST EARNINGS, NOT BECAUSE OF THE RATE, BECAUSE OF USING THEIR DOLLARS.
WE HAVE INCREASED THE HOT TRANSFER A BIT, AND THEN NO CASH FUNDED CAPITAL FOR THE NEW YEAR, BUT I'LL SHOW YOU WHY WE'RE SETTING IT UP THAT WAY.
THE EXPENSE SUMMARY. SAME THING.
COMPENSATION AND BENEFITS IS JUST A VERY SLIGHT MOVE.
MAINTENANCE AND OPERATION IS LARGELY DUE TO IT INSURANCE, PEST CONTROL.
THEN AGAIN, WE'RE DOWN ON THE CAPITAL PROJECTS, THE CASH FUNDED CAPITAL.
HERE'S THE CAPITAL BUDGET AND THESE ARE ALL PRIOR YEAR FUNDINGS.
SOME OF THESE WERE HOLDING THEM.
WE'RE JUST NOT DOING THEM AT THE MOMENT, SO THE DOLLARS REMAIN AVAILABLE IF NEEDED.
THE PROJECT THAT DID GO THROUGH WAS THE AMPHITHEATER EROSION REPAIRS THAT'S COMING FROM THAT PARKING LOT, GOING BACK DOWN TO WHERE THE AMPHITHEATER IS.
THE MAINTENANCE FUND AND THE EQUIPMENT FUND SOME GETS SPENT OUT OF THAT.
BUT WE'RE TRYING TO HOLD ONTO AS MUCH OF IT AS WE CAN, AS WE TALK ABOUT POTENTIAL CHANGES AND IMPROVEMENTS AT CIVIC CENTER.
WE ARE ASKING FOR SOME CHANGES HERE.
THE MAJOR CHANGE OVER TO GO FROM A VARIOUS RATE, AND I BELIEVE LISA IS HERE AND CAN EXPLAIN THAT TO ONE HALF TIMES WHATEVER THE BASE RENT IS.
THAT'S THAT MAJOR GETTING PEOPLE IN AND THEIR EVENTS AND GETTING PEOPLE OUT.
STORAGE CLOSETS HAVE BECOME HOT REAL ESTATE AT THE CIVIC CENTER.
AS YOU MIGHT IMAGINE THERE'S A LIMITED NUMBER OF THE M. THEREFORE, THEY SHOULD PROBABLY NOT BE FREE TO OUTSIDE PARTIES, WE'RE ASKING TO BE ABLE TO CHARGE FOR THE USE OF OUR STORAGE CLOSETS.
THEN FINALLY, THE FACILITY IMPROVEMENT FEE.
THAT'S BEEN $1 A TICKET SINCE WE IMPLEMENTED IT A NUMBER OF YEARS AGO.
WE'D LIKE TO ADD ONE QUARTER OR $0.25 TO THAT.
>> THAT FACILITY IMPROVEMENT FEE, WHERE DOES THAT MONEY GO INTO A FUND?
>> BACK INTO REVENUE. ANY QUESTIONS? MAYOR, I DON'T MEAN TO INTERRUPT, BUT SOMETHING I SHOULD HAVE SAID AT THE START.
YOUR CIVIC CENTER HAS NO GENERAL FUND OR TAX DOLLARS IN IT.
IT STANDS ON ITS OWN, YOU COVER ITS LOSS THROUGH ITS HOT REVENUE, AND YOU USE HOT PRIMARILY ALSO TO DO CAPITAL. WELL RUN.
>> IT DOES. IT'S GETTING CLOSE TO HAVING A MILESTONE BIRTHDAY.
MEADOW BROOK, AND COUNSEL'S WELL AWARE OF SOME PRETTY SIGNIFICANT AND TO THIS DATE AND TIME, VERY POSITIVE CHANGES THAT HAVE BEEN MADE AT THE GOLF COURSE.
THIS RUNS THROUGH A THIRD PARTY.
[01:05:03]
YOU'VE GOT ONLY TWO BUDGET YEARS.THAT'S ALL WE'VE HAD UNDER THIS ARRANGEMENT.
WE'RE GOING TO COLLECT A SMALL AMOUNT OF INTEREST ON CASH ON HAND.
MEMBERSHIPS, YOU SEE GREEN FEES GOING UP.
THIS COURSE HAS ACTUALLY SET SOME RECORDS WITHIN ITS OWN NETWORK FOR HOW MUCH IT'S BEING UTILIZED.
PRO SHOP SALES, CART FEES GOING UP A LITTLE BIT.
RANGE SALES FLAT. WE ARE MAKING SOME IMPROVEMENTS AT THAT RANGE. IT NEEDS IT.
THE TOTAL REVENUE SOURCES COME UP TO 2.8 MILLION UP FROM 2.6 MILLION.
THEN YOU SEE DOWN BELOW A LITTLE BIT OF AN INCREASE IN SUPPLIES, DECREASE IN MAINTENANCE BECAUSE SO MUCH GOT DONE THIS YEAR ON PROFESSIONAL SERVICES AND TRAINING.
SAME WITH OTHER OR OTHER IS DOWN, AND THEN AN INCREASE IN THE SCHEDULED CHARGES THAT WE PUT TO THE COURSE.
REVENUE BUDGET OF 2.85 COMPARED TO AN EXPENSE BUDGET OF 2.79.
THE DIFFERENCE WILL HELP YOU BUILD THE AVAILABLE RESERVES.
YOU HAD A PROJECT FUNDED IN THIS CURRENT YEAR AT 107,000 TO MAKE IMPROVEMENTS OUT THERE.
WE'RE NOT ASKING TO FUND THAT AGAIN.
I'M GOING TO MOVE INTO INTERNAL SERVICE, MAYOR.
I DON'T KNOW WHEN YOU WANTED TO TAKE OUR BREAK.
>> NOW'S A GOOD TIME. WE'LL TAKE A 10 MINUTE BREAK.
WE'LL JUMP NOW ON TO THE INTERNAL SERVICE FUNDS.
INTERNAL SERVICE FUNDS EXIST TO PROVIDE SERVICES TO OTHER CITY OPERATIONS, SO THEIR CUSTOMERS ARE ALL INTERNAL.
FLEET, OF COURSE, IS ONE OF THE LARGEST OF THOSE.
IF YOU LOOK ON BLOW THAT UP JUST A LITTLE BIT.
IF YOU LOOK AT THE DEPARTMENT LEVEL EXPENSES CURRENT YEAR 13.9, PROPOSED BUDGET IS 14.2.
WE'VE GOT A BIT OF AN INCREASE IN BENEFITS LARGELY DUE TO TMRS HEALTH AND DENTAL.
THE MAINTENANCE AND OPERATION INCREASE IS THE VEHICLE MAINTENANCE, WHICH IS A LARGE PART OF WHY THEY'RE THERE.
WE'VE TAKEN LAST YEAR, WE PURCHASED A LARGE AIR COMPRESSOR.
WE DON'T NEED IT AGAIN, SO THAT MONEY COMES BACK OUT.
YOUR VEHICLE AND EQUIPMENT DEBT IS GOING UP, AND THAT'S TAX NOTES FOR SOLID WASTE AND LUBBOCK FIRE RESCUE.
REMEMBER THAT THOSE DEPARTMENTS ARE CHARGED FOR THAT, SO YOU SEE IT IN THEIR BUDGETS, AND THEN IT COMES OVER HERE.
TRANSFER TO CAPITAL IS GOING DOWN.
WE DON'T HAVE AS MANY CASH CAPITAL PROJECTS THIS YEAR.
QUESTIONS ON FLEET BEFORE WE GO TO BENEFIT.
THIS IS DUE TO SOME STAFFING CHANGES AND REALLOCATION OF THOSE COSTS.
YOU SAW THE NEGATIVE THAT'S ASSOCIATED WITH THE POSITIVE IN THE HUMAN RESOURCES BUDGET.
FROM GENERAL FUND BACK OVER HERE.
YOU REALLY NEED SOME HELP HERE. SUPPLIES INCREASING DUE TO BUDGET FOR IMMUNIZATION SUPPLIES.
THE PROFESSIONAL SERVICES INCREASE IS ALMOST ENTIRELY FOR THE EMPLOYEE ASSISTANCE PROGRAM THAT WE PROVIDE.
WE HAVE HAD A LITTLE BIT HIGHER MEDICAL AND PRESCRIPTION CLAIMS, AND THEN THERE'S DIFFERENT CREDITS THAT HAVE COME BACK AND FORTH, AND YOU SEE THE BOTTOM LINE CHANGE ON THAT.
BENEFITS, EXPENDITURES FROM 46.1, YOUR HEALTH PLAN, ALL THAT STUFF IS INSIDE OF HERE, DOWN TO 47.1 OR UP TO 47.1.
GO TO INFORMATION TECHNOLOGIES.
THE CURRENT BUDGET ON EXPENDITURES BY CATEGORIES IS 13.7.
BIG PART OF THAT IS IN COMPENSATION CHANGES AND THE BENEFITS CHANGES ASSOCIATED WITH.
THE MAINTENANCE IS YOUR LARGEST SINGLE LINE ITEM CHANGE, AND THAT'S VARIOUS EQUIPMENT, SOFTWARE MAINTENANCE.
THAT IS NOT BECAUSE THAT TAX NOTE DEBT HAS PAID OFF.
IT'S BECAUSE IT'S BEEN MOVED OVER INTO THE RADIO SHOP WHERE IT MORE APPROPRIATELY BELONGS.
AT THE BOTTOM LINE, CURRENT YEAR TOTAL EXPENSES, 15 MILLION NEW BUDGET 15.9.
WE'VE BEEN IN ALL THESE OTHER BUDGETS AND WE TALK ABOUT SCHEDULED CHARGES GOING UP, GOING UP FOR IT, THIS IS WHERE THAT COMES FROM.
[01:10:02]
GIS AND DATA SERVICES PRETTY FLAT.ON THIS ONE, SCHEDULED CHARGES DID GO DOWN A LITTLE BIT.
BENEFITS DID GO UP A LITTLE BIT.
BOTTOM LINE TOTAL FOR THIS, 938,000 IN THE CURRENT YEAR.
WITH THE COMPENSATION ADJUSTMENT THAT'S BEEN PROPOSED, THEY WOULD GO TO 955,000.
Y'ALL HAVE ALL SEEN A LOT OF THEIR PRODUCTS.
THEY'RE HANGING ON THE WALLS UP ON THE 11TH FLOOR.
I GO TO TELL YOU WHAT, IF YOU NEED SOMETHING FROM THIS GROUP, THEY'RE FAST AND THEY'RE GOOD.
THEY REALLY LOT OF POWER IN THAT GROUP TO HELP US SHOW THINGS.
THAT TOP LINE OR THAT TOP COMMENT ABOUT COMMUNICATIONS, MAINTENANCE GOING UP BECAUSE OF THE COST OF THE INTERACTIVE VOICE RESPONSE SYSTEM.
THAT IS ACTUALLY A TELEPHONE SOFTWARE THAT'S USED BY LP&L IN THE UTILITY CUSTOMER SERVICE OFFICE.
IT DOES ULTIMATELY GET CHARGED BACK TO LP&L.
BUT HERE YOU CAN SEE THE EXPENSE OF IT.
WE DO HAVE A DECREASE IN CAPITAL BECAUSE WE WERE ABLE TO REPLACE QUITE A BIT OF THE BACKGROUND PART OF THE PHONE SYSTEMS. YEAR OVER YEAR CHANGE IS 1.78 MILLION TO 1.749 MILLION.
RADIO SHOP, SLIGHT COMPENSATION DECREASE, THAT'S JUST DUE TO HOW THE STAFFING IS LAID OUT.
THERE'S A SMALL BENEFITS INCREASE.
WE ARE NOT DOING A TRANSFER TO THE CIP FOR THE NEW YEAR.
REMEMBER THOUGH FOR THE NEW YEAR, WE ARE GOING TO DO A MAJOR RADIO SYSTEM UPGRADE ACROSS THE WHOLE CITY.
THEN TRANSFER TO FLEET, THEY ARE REPLACING A VEHICLE THAT THEY HAVE.
CURRENT YEAR 2.18 NEW YEAR 1.77.
THIS IS WHERE ALL THOSE INTEREST EARNINGS THAT YOU'VE BEEN SEEING ARE GENERATED.
WE HAVE ONE STAFF MEMBER THAT IS LARGELY CHARGED TO THIS AND A PIECE OF ANOTHER.
BUT THE BENEFITS COST IS UP, THE COMPENSATION WITHOUT THE ADJUSTMENT.
THE COMPENSATION IS VERY FLAT.
SUPPLIES ARE DOWN, PROFESSIONAL SERVICES ARE UP, AND THAT'S THE CHARGES THAT WE GET FROM OUR BANK AND THEN SCHEDULED CHARGES BACK TO THE FAMOUS IT DEPARTMENT.
CURRENT YEAR 208, NEARLY 209,000 NEW YEAR 220,000.
PRINT SHOP HAD A VERY SLIGHT DECREASE IN COMPENSATION, THAT'S JUST BASED ON A NEW EMPLOYEE.
THE PROFESSIONAL SERVICES ARE UP SLIGHTLY, AND THAT IS DUE TO OUR THIRD PARTY MAIL SERVICE.
THE ONE TIME EXPENSE THAT WE HAD FOR OUR NEW SOFTWARE TO ALLOW THEM TO CHARGE OUT TO OTHER DEPARTMENTS, THAT'S BEEN BOUGHT PAID FOR, SO IT GOES DOWN NOW, AND THEN A SLIGHT INCREASE COMING IN FROM IT, BOTTOM LINE NUMBER 247,000-253,000.
WAREHOUSE. SLIGHT COMPENSATION DECREASE, VERY SLIGHT.
OUR SUPPLIES INCREASE IS DUE TO THE WEATHER GEAR, THE PPE THAT WE BUY, AND JUST VARIOUS OTHER THINGS.
IT IS TIME TO REPLACE THEIR PICKUP TRUCK.
OUR SCHEDULED CHARGES ARE UP FOR IT, PROPERTY INSURANCE, AND ELECTRIC.
CAPITAL IS GOING DOWN BECAUSE WE HAD A ONE TIME PURCHASE THAT WE NEEDED TO MAKE LAST YEAR, WHICH WE DID.
YOUR BOTTOM LINE IS 500,000 UP TO 506,000.
THE AMOUNT OF THINGS THAT THEY INVENTORY AND PROVIDE OUT THERE ON A DAY TO DAY BASIS IS PRETTY IMPRESSIVE.
WE'VE GOT COMPENSATION DECREASE BECAUSE OF SOME STAFFING CHANGES AND SHIFTING ONE OF OUR SAFETY SPECIALISTS OVER TO THE WATER DEPARTMENT, THE CHARGE FOR THAT PERSON.
WE ARE BUDGETING FOR A NEW ROUND OF PROPERTY APPRAISAL SERVICES.
WE HAVE TO DO THAT EVERY FEW YEARS, AND THAT'S HOW WE GO OUT AND BUY OUR INSURANCE.
ALSO MAKES SURE WE ARE INSURING FOR AN APPROPRIATE REPLACEMENT COST.
SCHEDULED CHARGES DOWN BECAUSE WE HAVE TRANSITIONED INTO SELF INSURED WORKERS COMPENSATION.
I THINK THAT CAME UP YESTERDAY, AND THAT'S WHAT YOU'VE GOT HERE.
TRANSFER OF THE GENERAL FUND IS GOING UP SLIGHTLY BECAUSE OF THE ORGANIZATIONAL DEVELOPMENT PROGRAM.
IT'S ACTUALLY IN HR, BUT IT'S PAID FOR OUT OF HERE.
ALL IN THOUGH, YOU HAVE A DECREASE FROM 13.4-12.7 MILLION.
[01:15:04]
HERE IS THE CAPITAL FOR YOUR INTERNAL SERVICES.YOU SEE THE PUBLIC SAFETY RADIO SYSTEM AT 6.1 MILLION.
YOU SEE THAT SETUP AS A TAX NOTE.
THE RADIO SYSTEM WE HAVE TODAY WENT ONLINE IN 2015.
THE CITY LOOKED QUITE A BIT DIFFERENT THEN.
IT HAS TWO PRIMARY TOWERS ON IT, AND THEN A COUPLE OF SMALLER ONES THAT FEED BACK INTO THE BIG ONES.
DOING THIS IS GOING TO MAKE A MULTI SITE EXPANSION, SO WE'LL ACTUALLY HAVE NEW TOWERS.
WE ARE ALSO ABLE TO OFFSET SOME USER FEES FROM ALL THE PARTNER AGENCIES THAT ARE ON OUR NETWORK.
WE LOOKED AT DOING THIS ON A THREE YEAR CASH BASIS, BASICALLY ONE NEW TOWER IN THE RELATED STUFF EACH YEAR, REALLY TALKING TO IT, TALKING TO RADIO SHOP, TALKING TO PUBLIC SAFETY.
WE REALLY FEEL LIKE WE'RE BETTER OFF GETTING THIS DONE, GETTING IT ALL DONE AT ONCE.
WE'VE JUST OUTGROWN THE ABILITY FOR IT TO COVER.
ALL OF THE VEHICLES THAT ARE BEING REPLACED UNDER THAT CATEGORY, THE 11.5 MILLION, THOSE ARE ALL EITHER NEW CASH OR EXISTING CASH THAT CAME OUT OF THE COUCH CUSHIONS.
THEN WE DO HAVE A LITTLE BIT COMING IN ON SOME TAX NOTES, AND YOU SEE HOW THAT DIVIDES OUT. SPECIAL REVENUE.
SHORT VERSION OF SPECIAL REVENUE.
ARE THINGS LIKE TIFS, GRANT FUNDED PROGRAMS AND ITEMS LIKE THAT.
THEY ALL STAND ALONE IN AN INDIVIDUAL FUND, AND SO WE'LL WATCH THROUGH THEM NOW.
WITHIN YOUR TAX INCREMENT FINANCING ZONES, WE'LL START WITH THE CENTRAL BUSINESS DISTRICT.
THE COLUMN THAT'S BRACKETED, THAT IS YOUR NEW BUDGET YEAR, AND OF COURSE, THE COLUMN TO THE LEFT IS THE CURRENT BUDGET YEAR.
FOR THE CENTRAL BUSINESS DISTRICT OR THE DOWNTOWN TIF, CURRENT YEAR FUNDING SOURCES 1.75, NEW YEAR 1.77.
TAX COLLECTIONS ARE UP VERY SLIGHTLY, AND SO ARE INTEREST EARNINGS.
COMING ON DOWN, THE ADMINISTRATIVE COSTS, POSTAGE, BOARD INSURANCE, ALL OF THAT.
YOU HAVE YOUR DEBT SERVICE, YOU HAVE THEIR CAPITAL PROJECT FUND.
THE SMALL PIECE OF THE COMPENSATION ADJUSTMENT TAKES YOU TO 2.68 MILLION ON EXPENDITURES.
THE DELTA THERE IS IN THAT TRANSFER TO THE CAPITAL PROJECT FUND.
COMES UNDER THE LINE IN THIS CASE BY 900,000, BUT IF YOU WALK TO THE RIGHT, YOU WILL SEE HOW THAT COMES BACK AND BALANCES OUT YOUR REVENUES AND EXPENDITURES.
THAT SAME CHANGE APPEARS ON THE FIRST LINE OF YOUR RESERVES.
THIS WILL BRING 2.3 MILLION IN RESERVES FOR THE PROPOSED YEAR.
YOU HAVE A DEBT SERVICE RESTRICTION INSIDE OF IT, PULLING IT DOWN TO 1.9 THAT'S AVAILABLE, BUT WATCH TO THE RIGHT AS THAT WALKS ITSELF BACK UP AS WELL.
HERE IS YOUR DOWNTOWN TIF CAPITAL IMPROVEMENT PROGRAM.
THE NEW MONEY IS PUBLIC IMPROVEMENTS IN THE AMOUNT OF 1.5.
THAT IS NOT NEW BONDS FOR 157,000, THAT'S SOME REMAINING BONDS FROM YEARS AGO.
THEN THEY WISH TO CREATE A UTILITY INFRASTRUCTURE GRANT PROGRAM.
WHEN YOU HAVE IN THE NAME HAS JUST ESCAPED ME, WE HAVE A NEW ELECTRICAL COMPANY RIGHT OVER HERE JUST SOUTH OF BROADWAY, AND THEY WERE ABLE TO COMBINE SOME ALLEYS AND CLOSE A STREET, BUT THERE HAD TO BE INFRASTRUCTURE MOVED.
THIS WOULD BE A WAY TO OFFSET A PORTION OF THAT FOR RELEVANT OPERATIONS.
OUT OF THE 1.75 TOTAL IN CAPITAL, ROUGHLY 1.6 OF THAT IS THEIR CASH AND 157 IS OLD BOND MONEY.
GO OVER TO THE LUBBOCK BUSINESS PARK.
THIS ONE IS STRUCTURED THE SAME WAY.
YOU'VE GOT TOTAL EARNINGS IN THE AMOUNT OF 1.08 MILLION.
CASH FUNDED CAPITAL, 1.2 MILLION IN LEDA.
I BELIEVE THAT SAME NUMBER YOU'RE GOING TO SEE IT IN THE LEDA BUDGET LATER ON TODAY.
AGAIN, THE BIG DIFFERENCE HERE IS GOING TO BE THE CAPITAL.
THERE ARE ABOUT 141,000 UNDER THE LINE.
THAT ALSO QUICKLY RECOVERS AS YOU MOVE TO THE RIGHT.
THE VERY BOTTOM LINE IS THEIR RESERVES.
3.55 MILLION IN THE NEW YEAR, CARRYING OUT TO 8.7 ON THE RIGHT SIDE.
[01:20:01]
THE CAPITAL PROJECT IS THE EAST HUNTER STREET EXTENSION.MR. OSBORNE'S HERE AND PRESENT QUESTIONS LATER, HE'LL BE ABLE TO TALK TO YOU ABOUT THAT.
1.1 MILLION IN NEW CASH, 33,000 IN OLD MONEY.
NORTH OVERTON TIFF. SAME STRUCTURE, THE BRACKETED COLUMN IN THE MIDDLE IS THE PROPOSED BUDGET, REVENUES OF 6.6 MILLION, OFFSET BY EXPENSES OF 4.5.
THIS BUDGET IS 2.1 TO THE GOOD. COME DOWN THE LINE.
YOU SEE THAT IS GROWING THEIR RESERVE BALANCES, LET ME COMMENT ABOUT DEBT SERVICE RESERVE BECAUSE THIS WILL ALSO GO UP INTO YOUR DEBT SERVICE ANNUAL DEAL.
WE HAVE TWO FULL YEARS LEFT ON THE CONFERENCE CENTER DEBT OUT THERE.
THAT ALSO THEN FREES UP DOLLARS THAT GO INTO THE RESERVES.
IF YOU GO WITH ME BACK TO THE VERY BOTTOM LINE, WE'RE ESTIMATED TO HAVE 11.5 MILLION IN THAT RESERVE ACCOUNT AT THE END OF THE NEW YEAR.
THE YEAR THAT THIS IS SUPPOSED TO EXPIRE OR WILL EXPIRE, IS 41.5 MILLION.
NOW, ONCE THE DEBT SERVICE IS RETIRED, IT WOULD BE A FAIR DISCUSSION WITH THIS BOARD ABOUT ENDING THE TIF SOONER.
YOU CAN'T END IT WHILE YOUR DEBT WHILE YOUR DEBT IS OUTSTANDING.
QUESTION ABOUT THE RESERVE FUNDS, WHAT HAPPENS WHEN A TIF EXPIRES, THAT HAS RESERVES, AND THIS ONE'S WORKED PERFECTLY.
THEY ARE DISTRIBUTED BACK TO THE TAXING ENTITIES AT THE SAME RATIO THAT THEIR TAX LEVY IS TO THE TOTAL.
YOU'VE GOT CITY OF LUBBOCK, LUBBOCK COUNTY, THE HOSPITAL, AND THE GROUNDWATER DISTRICT OR THE FOUR PARTICIPATING DISTRICTS.
MAKES SENSE. NORTH OVERTON'S CAPITAL PROGRAM, YOUR GENERAL PUBLIC IMPROVEMENTS FOR 750.
THEN THE ONGOING STREET UPGRADES AND REPLACEMENTS AT 1,000,000.5.
I THINK THEY MAY ONLY HAVE ONE MORE YEAR ON THE STREET UPGRADE PROGRAM AFTER THIS, AND THEY'VE GOT ALL THAT BIG WORK DONE.
READY FOR COMMUNITY DEVELOPMENT? THIS WILL GO ON FOR A COUPLE OF PAGES HERE.
THE COMMUNITY DEVELOPMENT PROGRAM FOR THE CITY DOES NOT HAVE GENERAL FUND MONEY.
KAREN MURPHY AND HER TEAM EXIST OFF OF THE VARIOUS GRANTS THAT COME INTO THE BENEFIT OF OUR COMMUNITY.
THE TOP ONE IS THE COMMUNITY DEVELOPMENT BLOCK GRANT.
THE BUDGET FOR THE CURRENT YEAR IS RIGHT AT 2.2 MILLION, AND THEN ON THE FAR RIGHT, THE NEW BUDGET, 2.25.
THE CDBG BLOCK GRANT, WHICH FOR YEARS HAS BEEN THE MAINSTAY OF THIS, IT'S REALLY JUST WAGGLING RIGHT THERE AT THAT 2.2.
YOU HAVE YOUR EXPENDITURES THAT GO UNDERNEATH IT.
THEN THE FUND LEVEL, THOSE TOTAL TO 1.098 OR 1.1.
THEN YOU'VE GOT YOUR VARIOUS EXPENDITURE CATEGORIES COMING IN JUST SLIGHTLY UNDER THE REVENUE ON THIS ONE.
GO TO THE NEXT PAGE. THERE ARE TWO GRANT PROGRAMS HERE.
YOU HAVE THE HOME INVESTMENT PARTNERSHIP PROGRAM OR THE HOME GRANT.
THIS ONE WE THOUGHT WAS STARTING TO COME BACK UP.
IT SEEMS TO BE CENTERED THERE RIGHT ABOUT ONE MILLION DOLLARS.
THERE IS A BIT OF PROGRAM INCOME HERE.
THE REASON PROGRAM INCOME HAS GONE DOWN OVER THE LAST FEW YEARS.
WE SPENT QUITE A BIT OF IT, AND THAT WAS RELATED TO THAT MAJOR DEMOLITION PROGRAM OR PROJECT OVER IN DISTRICT 1, THAT.
SOME OF YOU ALL WERE HERE WHEN WE DID THAT.
EXPENDITURES, 983,000 FOR AFFORDABLE HOUSING DEVELOPMENT, 10% FOR THE ADMINISTRATIVE LOAD ON THIS ONE, BALANCED BUDGET AT 1.081 MILLION.
THE NEXT ONE IS THE EMERGENCY SOLUTIONS GRANT OR ESG.
THE ENTITLEMENT PORTION OF THAT IS SMALL.
THERE IS NO MORE COVID FUNDING THAT GOES IN THAT.
THIS ONE ALL GOES FOR HOMELESS HOUSING AND SERVICES MINUS A 7.5% FOR THE ADMINISTRATION THEREOF.
THE NEXT, YOU'LL HEAR US SOMETIMES USE THE WORD CAP, WHICH IS COMPREHENSIVE ENERGY ASSISTANCE PROGRAM.
THIS IS PROVIDING BILL ASSISTANCE FOR PEOPLE WITH THEIR ESSENTIAL UTILITIES.
THIS ONE ALSO HAS CENTERED UP RIGHT THERE AROUND TWO MILLION AND PROBABLY IS GOING TO STAY.
[01:25:03]
THIS ONE HAD RPA MONEY.IT WAS NOT THE SAME GENERAL MONEY THAT THE CITY HAD.
THAT'S ALL BEEN WORKED OUT OF IT.
IN THE MIDDLE, YOU'VE GOT THE DEPARTMENT EXPENDITURES.
131,000. OUT OF THAT TWO MILLION DOLLARS, KAREN AND HER TEAM PROVIDE ALL THE ADMINISTRATIVE FOR 131,000 AND PROVIDE NEARLY 1.87 BACK TO PEOPLE THAT ARE IN NEED.
YOU'VE GOT SOME MISCELLANEOUS OTHER FUNDING SOURCES.
WE'VE GOT SOME OLDER CARRYOVER MONEY THAT'S ACTUALLY WORKED ITS WAY OUT.
MOVE OVER TO THE RIGHT ON THE LAST SECTION.
THIS IS THE TOTAL OF THOSE VARIOUS GRANTS THAT ARE IN THERE AND GETTING YOU TO 5.5 MILLION.
>> READY FOR ECONOMIC DEVELOPMENT? THIS FIRST ONE, THIS IS A BIT OF THE CATCH-ALL WHERE WE RUN EVERYTHING INTO IT AND THEN IT GOES OUT INTO DIFFERENT SOURCES.
THE COMPENSATION AND THE BENEFITS, THAT'S A PORTION OF THE TWO TOTAL FTES THAT WE HAVE IN THE CITY'S BUSINESS DEVELOPMENT DEPARTMENT.
THAT'S MS. BROWN AND HER TEAM.
THEY DO A GREAT AMOUNT OF WORK.
OTHER THAN THAT, WHAT YOU'RE REALLY GOING TO SEE ARE TRANSFERS.
COME WITH ME ALMOST TO THE BOTTOM AND YOU SEE TRANSFER TO TRANSIT AT $400,000.
YOU'RE STILL PAYING OUT OF THE GENERAL FUND BUT YOU WOULD BE PAYING A LITTLE MORE THAN THAT.
SAYING THIS IS NOT GENERAL FUND IS A LITTLE BIT DISINGENUOUS.
THIS IS STILL ALL YOUR MAINTENANCE AND OPERATIONS PROPERTY TAX MONEY.
WHEN YOU HEAR US TALKING ABOUT THE M&O LEVY AND ALL THAT, THAT'S WHAT IS FUNDING THE TOTALITY OF THIS.
FOUR HUNDRED THOUSAND OF IT GOES OVER TO TRANSIT.
THAT HAS BEEN A FLAT NUMBER FOR MANY YEARS.
THEN YOU HAVE THE MARKET LUBBOCK TRANSFER.
CURRENT YEAR, THE TRANSFER TO MARKET LUBBOCK OUT OF THIS SOURCE WAS 3.505 MILLION.
WE HAVE PULLED THAT DOWN A LITTLE BIT TO 3.106 MILLION.
COLLECTIVELY, YOU'VE GOT 3.739 IN FUNDING, 3.739 IN EXPENDITURES.
ALL IN, THIS IS A 9% REDUCTION.
THIS GROUP TOOK THE SAME HIT THAT ALL THE OTHER GENERAL FUND DEPARTMENTS TOOK.
>> JUST ONE QUESTION OR ONE COMMENT ON IT.
THE PROPERTY TAX LINE IS EMPTY.
FOR THIS YEAR WAS CARRY THE MONEY BEFORE AND NOW WE PUT THE MONEY DOWN IN THE GENERAL FUND BECAUSE WE'VE CHANGED HOW WE TRANSFER.
>> THAT'S CORRECT, MAYOR. AT THE END OF THE BUDGET, NOW COMING ON TWO BUDGETS AGO, THE COUNCIL UNCOUPLED IT FROM A RATE.
WE LEFT IT WHERE IT WAS LAST YEAR.
THERE'S NO CHANGE IN HOW THEY'RE GETTING THEIR MONIES.
IT'S JUST THAT THIS IS NOW A TRANSFER FROM THE GENERAL FUND RATHER THAN SHOWING UP ON PROPERTY TAX.
ONE OF THE REASONS WE DID THAT IS INTERNALLY, IN THE PAST, WE'VE HAD TO CALCULATE THREE DIFFERENT TAX RATES WHEN STATUTORILY ONLY TWO EXIST.
WE'RE SQUARING ALL THAT UP AS WELL.
THERE WILL BE MORE DETAILS ON THE USES OF THOSE FUNDS.
YOU'VE SEEN CITY BUS, BUT YOU'LL SEE MORE ON THE MARKET LUBBOCK MONEY HERE IN A LITTLE BIT.
>> WHEN MARKET LUBBOCK WAS INITIATED, WAS IT BASED ON A PERCENTAGE OF PROPERTY TAX?
>> I HAVE BEEN TOLD IT WAS BASED ON A FLAT NUMBER OF PENNIES.
WE HAVE NOT FOUND IT, BUT WE'VE BEEN TOLD THAT.
>> [LAUGHTER] I'M GOING TO GUESS VERY EARLY 2000S.
>> BUT IT STARTED AS A FLAT NUMBER OF PENNIES PER 100.
>> THAT IS WHAT WE'VE BEEN TOLD, YES.
>> IT'S EVOLVED TO THE POINT WHERE WE DON'T DO IT THAT WAY.
DO WE HAVE ANY PROJECTION ABOUT WHERE THAT NUMBER MIGHT HAVE BEEN HAD WE LEFT THOSE PENNIES ALONE?
>> CURRENT YEAR A PENNY IS ROUGHLY 2.4 MILLION.
>> IF WE IMAGINED THAT THAT SOMEWHERE IN A DOCUMENT THAT WAS THREE PENNIES, IF I RECALL, AND SO THAT WOULD PUT US SOMEWHERE AROUND 6.6, 6.8.
>> I'M GOING TO CHEAT BECAUSE I DID MATH IN PUBLIC LAST YEAR.
>> I GOT POPPED. THREE PENNIES AT THE CURRENT VALUE WOULD BE ABOUT 7.2.
[01:30:04]
>> SEE, I DON'T DO MATH IN PUBLIC, BUT ABOUT 7.2.
OVER THE COURSE OF THIS TRANSITION, WE'VE SEEN THIS NUMBER DECLINE BY APPROXIMATELY 50%. IS THAT FAIR?
>> WOULD HAVE GROWN TO THAT REVENUE, BUT WHEN THEY HAD FIRST INITIATED THE TRANSFER TO CITY BUS, THAT CAME OUT OF WHATEVER NUMBER OF PENNIES WERE BEING ASSIGNED.
THEN WHEN WE CREATED INTERNALLY THE BUSINESS DEVELOPMENT GROUP, THAT WAS PART OF WHAT WE WORKED OUT WITH MARKET LUBBOCK AND LITA THAT WE WERE GOING TO COVER THAT.
THEN AGAIN, THERE'S NOT A DIRECT.
IT'S SO MANY PENNIES AT THIS POINT.
I WANT TO SAY 2012 IS WHEN THE CITY BUS TRANSFERS STARTED.
SOMEWHERE RIGHT IN THERE. I BELIEVE MAYOR ROBERTSON.
>> YES. I THINK EVERYTHING WAS LEFT ALONE FAIRLY WELL UP UNTIL 2012 AND THEN CHANGES STARTED TO BE MADE.
THAT'S ALL FOR NOW. THANK YOU.
>> THANK YOU. IT'S TO DO GATEWAY STREETS.
CURRENT YEAR BUDGET IS 9.3 MILLION.
GATEWAY HAS TWO SOURCES OF REVENUE, A PORTION OF THE FRANCHISE FEES COLLECTED BY THE CITY, AND THEN WHATEVER INTEREST IS EARNED.
THAT IS BECAUSE THE FRANCHISE FEES ARE DOWN.
YOU SAW THAT IN THE GENERAL FUND WHEN WE LOOKED AT THE TOP LINES ON THE REVENUE THAT OBVIOUSLY AFFECTS THEM THE SAME.
YOU WILL ALSO NOTE THAT WE'VE GOT VERY SLIGHT INCREASES FROM THIS 8.58 AS WE GO OUT IN THE FUTURE.
AGAIN, THOSE WILL GET TRUTH OUT EVERY SUMMER BECAUSE WE DON'T KNOW.
COMING DOWN, YOUR LARGEST EXPENSE INSIDE OF GATEWAY IS 7.6 MILLION FOR DEBT SERVICE.
YOU SEE HOW THAT STAYS FLAT FOR TWO MORE YEARS AND THEN BEGINS TO COME DOWN SOMEWHAT RAPIDLY.
THAT TAX NOTE PAYMENT WAS A SHORT TERM NOTE THAT WAS TAKEN OUT ON A ROAD PROJECT A COUPLE OF YEARS AGO RATHER THAN DOING IT AS A 20-YEAR BOND.
IT'S NOT LOGICAL TO HAVE DONE AS SMALL AS WE DID ON 20 YEARS.
YOU SEE THE 500,000 THAT GOES TO INCREASE YOUR STREET MAINTENANCE FOR INSIDE THE LOOP LEAVING YOU WITH A TOTAL EXPENDITURE OF 9.15, AND WE'RE SLIGHTLY UNDER THE LINE HERE AT 139,864 EXPENSE GREATER THAN REVENUE.
WE'RE BACK UP IN THE FOLLOWING YEAR, FISCAL YEAR 27.
YOU SEE THAT BIGGER NUMBER THAT COMES IN AS A NEGATIVE FOR FISCAL YEAR 28.
THE REASON BEING, WE THINK THAT IS WHEN THIS FUND CAN CARRY ITS NEXT STREET PROJECT.
RECALL THAT WHEN GATEWAY WAS ORIGINALLY BUILT, NUMBER 1, IT WAS VERY INNOVATIVE.
IT WAS NOT DONE ANYWHERE ELSE IN THE STATE THAT I'M AWARE OF.
IN FACT, I WATCHED IT JEALOUSLY FROM AFAR.
GATEWAY WAS BUILT ENTIRELY AS A DEBT SERVICE FUND.
IT REALLY WAS. WE'VE BEEN ABLE TO COME IN.
COUNCIL SEVERAL YEARS AGO CHANGED THE GATEWAY'S GUIDANCE DOCUMENTS SO THAT WE COULD USE SOME OF IT FOR STREET MAINTENANCE.
IF WE WERE ABLE EVENTUALLY TO BUILD ENOUGH CASH, YOU COULD FUND A PROJECT.
I THINK IT'S REALLY GOING TO BE ADDITIONAL MAINTENANCE INSIDE THE LOOP THROUGH THE FUTURE, AS WELL AS EVERY FEW YEARS AND BY EVERY FEW YEARS, IT SEEMS ABOUT EVERY FIVE, YOU'LL BE ABLE TO PICK UP ONE MORE STREET PROJECT FOR GATEWAY.
GO DOWN AND LOOK AT THEIR RESERVES OR THEIR FUND BALANCE.
WE ARE SLIGHTLY UPSIDE DOWN ON EXPENSE VERSUS THE REVENUE.
BUT YOU SEE THAT THE FUND BALANCE TODAY OR FOR NEXT YEAR STARTS AT 12.1 MILLION.
THE RESERVE REQUIREMENT HERE, I BELIEVE, IS 75% OF ANNUAL DEBT SERVICE.
THEN AGAIN, YOU SEE HOW THAT RISES OUT INTO THE FUTURE.
>> FOR THE BENEFIT OF ANYBODY WHO MIGHT BE WATCHING THIS AND WONDERING ABOUT WHAT THE GATEWAY, HOW IT OPERATES, WHERE DOES THE REVENUE FROM THE GATEWAY COME FROM?
>> IT'S A PORTION OF THE FRANCHISE FEES THAT ARE COLLECTED IN THE GENERAL FUND? I DON'T REMEMBER THE PERCENTAGE RIGHT OFF THE TOP OF MY HEAD. CHERYL, PROBABLY DOES.
>> PERCENTAGE OF FRANCHISE FEES THAT GO TO GATEWAY?
>> WE'LL VERIFY THAT. THAT MAYBE A LITTLE LOW.
[01:35:04]
>> MOST OF THAT WAS USED ON MILWAUKEE.
>> MILWAUKEE AND THE MARSHA SHARP FLYOVER WITH [INAUDIBLE].
>> IT'S DONE SEVERAL SMALLER ONES, WHAT I WOULD CALL MORE NORMAL STREETS SINCE THEN, BUT THAT WAS WHAT IT WAS CREATED TO DO, AND IT DID IT VERY WELL.
GATEWAY, CAPITAL, SAME 500,000 FOR STREET MAINTENANCE INSIDE THE LOOP.
CASH READY TO GO TO HOTEL OCCUPANCY?
>> COUNCIL, WE ENDED UP BRINGING THIS SLIDE FORWARD LATE IN THE BUDGET LAST YEAR, SO WE PUT IT BACK FOR THIS YEAR.
JUST KNOW THAT UNDER STATE LAW, THERE'S TWO CRITERIA YOU HAVE TO MEET TO USE YOUR HOT TAX MONEY.
THE FIRST ONE, EVERY EXPENSE MUST DIRECTLY ENHANCE AND PROMOTE TOURISM AND CONVENTION AND HOTEL INDUSTRY.
THE SECOND CRITERIA, AND THAT'S THE ONE THAT'S GOT THE LAUNDRY LIST UNDERNEATH IT.
EVERY EXPENDITURE OF HOT MUST CLEARLY FIT INTO ONE OF THOSE NINE CATEGORIES BELOW.
LAST YEAR, WE DID MAKE SOME VERY SMALL CHANGES IN HOW YOU DISTRIBUTED THE HOT TAX.
THE LARGER CHANGE WAS TWO YEARS AGO.
THESE DOLLARS USED TO BE SENT OVER TO YOUR PARTNER AGENCIES AS A PERCENTAGE RATHER THAN A DOLLAR.
IF THEY WERE GOING TO GET 25% OF YOUR LEVY, WE WOULD STILL GIVE THEM AN ESTIMATE OF HOW MANY DOLLARS THAT REPRESENTED, BUT YOU WOULD PAY IN ARREARS AFTER THE CLOSE OF THE YEAR.
IF THE HOT TAX REVENUE WAS GREATER THAN YOU PREDICTED, THEY GOT THAT PROPORTIONATE BENEFIT.
THE COUNCIL STOPPED THAT AND YOU NOW ACTUALLY ARE BUILDING A HOT TAX RESERVE FUND.
NOW WHAT WOULD HAVE BEEN TRUE UP DOLLARS GOES INTO THAT RATHER THAN BACK TO YOUR PARTNER AGENCY.
AT ANY POINT IN THE FUTURE, FOR AN ELIGIBLE PROJECT, THE COUNCIL CAN ALLOCATE THOSE DOLLARS, INCLUDING BACK TO ONE OF THE PARTNERS IF THAT'S THE BEST WAY TO DO IT.
BUT THAT WAS A FUNDAMENTAL CHANGE TWO YEARS AGO.
LAST YEAR, WE MADE SOME MORE MINOR CHANGES REALLY RELATED TO THE MUSEUMS AND SUCH AS THAT.
WE'LL WALK THROUGH IN DETAIL IF EVERYBODY'S HAD A CHANCE TO READ AND MEMORIZE THE NINE PART TEST.
>> JUST TO MAKE THE POINT BECAUSE THIS QUESTION COMES UP FREQUENTLY FROM WELL, NOT REAL FREQUENTLY, BUT EVERY NOW AND THEN PEOPLE SAY, WHY CAN'T YOU USE THAT MONEY FOR YOUR GENERAL FUND TO HELP LOWER MY TAXES ON MY HOUSE BECAUSE THE LAW DOES NOT ALLOW US TO DO THAT. IT'S RESTRICTED.
>> IT WOULD BE ILLEGAL TO DO THAT.
>> YES, IT WOULD BE ILLEGAL TO DO THAT.
THAT'S THE BEST ANSWER FOR THAT.
IT HAS TO DIRECTLY DO BOTH OF THESE THINGS. THANK YOU.
>> FOR THE FUND AS A WHOLE, YOU'VE GOT CURRENT YEAR, 9.7 MILLION IN PROJECTED RECEIPTS GOING UP SLIGHTLY TO 10.077 IN THE FOLLOWING YEAR, 9.7 MILLION BASICALLY TO 10.1 MILLION.
CARRY THAT DOWN INTO YOUR FUNDING INTEREST EARNINGS ON TOP OF THAT, LEAVING THE HOT FUND FOR THE NEW YEAR AT $10.1 MILLION ALL IN.
YOU'VE GOT COMPENSATION AND BENEFITS.
THAT'S WHERE WE'VE BEEN ABLE TO ASSIGN UNDER THAT NINE PART TEST, SOME OF YOUR CITY EXPENSES, SOME PROFESSIONAL SERVICES AND TRAINING THAT SUPPORTS THAT, AND NOW YOU GET INTO YOUR TRANSFERS.
THESE ARE WHAT GOES TO YOUR PARTNER AGENCIES.
I'M GOING TO BLOW THAT PART OF IT UP.
WE'VE GOT CIVIC CENTER OPERATIONS AND MARKETING 2.75.
YOU HAVE YOUR CONVENTION AND TOURISM BUREAU, MORE COMMONLY KNOWN AS VISIT LUBBOCK, 3.7.
YOU HAVE CIVIC LUBBOCK AT 596 DISCIPLINES THE GRANT PROGRAM.
WHAT IS CALLED VISITING, PARTICIPATORY AND SPECTATOR SPORTS, OR LUBBOCK SPORTS ALLIANCE, COMES IN ON HERE AT 1.205.
WE HAVE A TRANSFER TO THE TIF FOR THE CONFERENCE CENTER, THAT IS NORTH OVERTON, 452.
BUDDY AND MARIA ELENA HOLLY PLAZA DEBT, 86,000.
THAT ONE'S GETTING CLOSE TO PAYING OFF.
WE HAVE THE TRANSFER TO THE CIP FROM THE CIVIC CENTER.
YOU'LL SEE THAT HERE IN A LITTLE BIT IN 150,000.
WE ARE ABLE TO TRANSFER SOME OF THESE DOLLARS TO YOUR TOURNAMENT BALL FIELDS.
THAT IS THE TOM MARTIN COMPLEX AND THE BERL HUFFMAN COMPLEX.
YOU SEE WE'VE BEEN DOING THAT FOR THREE YEARS.
WE NOW ARE ALLOCATING A PORTION OF THIS SPECIFICALLY
[01:40:04]
TO THE BERL HUFFMAN COMPLEX FOR THE EVENTUAL TURF REPLACEMENT ON YOUR TOURNAMENT FIELDS.THAT 494,000 IS NOT PROGRAM TO BE SPENT THIS YEAR.
THAT IS TO GO IN A CAPITAL PROJECT AND BUILD SO THAT WHEN WE NEED TO REPLACE THAT TURF, WE'LL BE ABLE TO DO SO.
THEN YOU'VE GOT VISITOR SUPPORT AT 268.
IT COMES DOWN ON A BOTTOM LINE, 10.077.
ON THE PIE CHART AS A PERCENT, YOU CAN SEE WHERE THOSE DOLLARS ARE GOING. HERE'S YOUR CAPITAL.
>> IT APPEARS TO HAVE A NEW LINE ITEM OR FROM 24,25 COMPENSATION AND BENEFITS.
WHAT PART OF OUR STAFF ARE WE?
>> IT'S PRIMARILY IN YOUR MUSEUMS.
>> CORRECT, BECAUSE WE JUST MADE THAT LAST YEAR.
>> THEY HAD BEEN PAID FOR UNDER WHAT CATEGORY?
>> MAINLY, THEY WERE COMING OUT OF THE GENERAL FUND.
>> OUT OF GENERAL FUND DOLLARS. VERY GOOD. THANKS.
>> BUT THAT WAS A LEGITIMATE USE OF THAT HOT TAX MONEY FOR THAT.
THAT WAS ONE OF THE CHANGES WE MADE.
>> THANKS, MAYOR. YOU'VE PROBABLY ALREADY WENT OVER THIS YEAR, BUT TRANSFERRED TO CIVIC CENTER, LOOKS LIKE IT WENT DOWN 60%. TRANSFERRED TO CIP?
>> WELL, REMEMBER THE MONEY THAT'S IN THEIR CIP, MAINLY WE'RE HOLDING IT EXCEPT FOR REPAIRS THAT WE NEED.
WE DIDN'T MAKE THE SAME TRANSFER THIS YEAR.
WE'RE ASKING FOR A SINGLE TRANSFER OF 150,000, AND THAT'S ACTUALLY TO WORK ON YOUR FUTURE OF THE CIVIC CENTER.
>> WE WERE ABLE TO MAKE THE CHANGE, I BELIEVE SEVEN YEARS AGO TO ENTIRELY GET THE CIVIC CENTER OFF OF YOUR GENERAL FUND, AND THIS IS WHERE THOSE COME IN.
THE MONIES THAT GO TO CIVIC LUBBOCK IN THE GRANTS PROGRAM, THAT'S FORMULAIC, CORRECT? THAT'S BASED ON SOMEWHAT ON REVENUE BY FORMULA.
>> THE PERCENTAGE THAT GOES TO EACH PARTNER IS NUMBER 1, IT'S ENTIRELY SET BY THE COUNCIL.
THE FORMULAS THAT ARE WRITTEN INTO THE HOT LAW IF I REMEMBER THEM CORRECTLY, THEY'RE ACTUALLY CAPS.
THEY'RE NOT SAYING YOU MUST GIVE X.
THEY'RE SAYING YOU CAN'T GO MORE THAN X PERCENTAGE.
EIGHT HUNDRED AND SEVENTY FOUR GOING INTO THE BALL FIELD MAINTENANCE AND IMPROVEMENT.
AGAIN, IT'S HUFFMAN AND MARTIN, AND THEN SETTING UP A CIP TO ACCUMULATE SOME EXTRA DOLLARS FOR YOUR FUTURE CONVENTION CENTER EXPANSION DISCUSSIONS.
IF THAT ENDS UP NOT BEING NEEDED, IT GOES INTO THIS RESERVE AND CAN GET REALLOCATED.
THAT JUST MEANS IT DOESN'T TAKE A LOT OF TIME THERE.
IN OTHER WORDS, THEY ALL FIT IN A BIG CHART.
YOUR NON MAJOR SPECIAL REVENUE FUNDS.
STARTS AT THE LETTER A, GOES TO W. NOTE THAT THIS IS GOING TO PICK UP ALL OF YOUR PIDS, PUBLIC IMPROVEMENT DISTRICTS.
THEY'RE ALL GOING TO BE IN HERE.
MOST OF THEM ARE AT THE BOTTOM OF THE PAGE, A COUPLE OF THEM ARE SCATTERED AROUND THERE.
ABANDONED VEHICLE FUND, THAT IS FOR THE BENEFIT OF THE POLICE DEPARTMENT.
YOU SEE THAT IT IS DOWN SLIGHTLY.
WE'RE TRYING TO GET SOME TRUE UP, DONE IN THAT FUND.
WE DON'T THINK IT'S GOING TO HIT ITS 2.9 THIS YEAR.
THIS IS NOT A REVENUE THAT'S IN ANYBODY'S CONTROL.
IT'S ULTIMATELY AFTER A VEHICLE ENDS UP SEIZED, STRUCK, AND AUCTIONED.
YOU PAY YOUR EXPENSES, AND THEN WHATEVER'S LEFT GOES INTO THIS FUND.
AT THE ANIMAL ASSISTANCE PROGRAM, ONE OF YOUR PIDS, CABLE SERVICES FUND.
[01:45:01]
WORK ACROSS ON THAT ONE.THAT IS WHAT EVERYBODY USED TO CALL PEG, WHICH WAS PUBLIC ENTERTAINMENT OR PUBLIC EDUCATION AND GOVERNMENT, IT'S YOUR TV CHANNEL.
THOSE ARE FUNDS THAT HAVE TO COME OUT REALLY OF YOUR CABLE PROVIDERS, AND YES, THE NUMBERS UP THIS YEAR.
I'LL SHOW YOU WHY HERE IN A MOMENT.
THEY'RE CONTINUING TO GO DOWN.
WE'VE MADE ONE BIG ROUND OF IMPROVEMENTS TO THE AUDIO AND THE VISUAL SYSTEM.
WE'VE GOT A LOT OF THE BACK END DONE, SECOND FLOOR IS DONE.
NEW YEAR, WE'RE GOING TO FINISH THIS.
GET ALL OF OUR STUFF HERE TO WHERE IT WORKS THE WAY IT SHOULD BE.
YOU HAVE VARIOUS GRANTS, THAT COME IN HERE.
AGAIN, MOST OF THEM ARE NOT GOING TO BE WITHIN OUR CONTROL.
THAT'S ACTUALLY A REVENUE THAT COMES BACK TO US, THAT WE CAN GENERATE ON THE BACK END OF THE HEALTH PLAN.
PRIMARILY, THEY ARE PHARMACEUTICAL REBATES.
YOU'LL NOTICE IT'S THE SAME NUMBERS PRIOR.
IT'S JUST PRETTY MUCH WHERE WE HAVE ALL OF OUR CATCH ALL.
I WOULD BRING YOU DOWN TO NORTH AND EAST LUBBOCK NEIGHBORHOOD IMPROVEMENT FUND.
THOSE ROYALTIES USED TO BE SPLIT UP AND GO TO A COUPLE OF DIFFERENT PLACES.
OIL PRICES HAVE STAYED DOWN, SO WE'RE NOT BUDGETING AS MUCH MONEY COMING IN, BUT THIS MONEY GOES NOWHERE OTHER THAN TO THOSE AUTHORIZED PROGRAMS. IT'S PRIMARILY DISTRICTS 1 AND 2.
IT BLEEDS A LITTLE BIT INTO 3. THE EXPENSE SIDE.
THE BIG ONE AGAIN, BEING THE CABLE SERVICES FUND, AT TWO MILLION.
IT'S NOT GOING TO GENERATE TWO MILLION.
THAT IS COMING OUT OF ITS RESERVE AND COMING OUT HERE SO THAT WE CAN SET IT UP AND SPEND IT.
SOME OF THE EXPENSES LOOK REALLY BIG.
YOU SEE SOME 124% ADDED UP AND CROSSING.
THAT'S A SELF ASSESSED GROUP, AND YOU WILL ACTUALLY BE DOING ALL OF THE PID BUDGETS.
I BELIEVE IT'S THE SECOND MEETING IN AUGUST, IS THAT CORRECT? YES. SECOND MEETING IN AUGUST.
YOU'LL SEE EVERY ONE OF THOSE BUDGETS. COMPONENT UNITS.
I THINK MR. OSBORNE IS STILL HERE.
JOHN, IF YOU DON'T MIND, WE'LL HAVE YOU COME UP AND WALK US THROUGH THE NEXT SEVERAL.
>> GOOD AFTERNOON, MAYOR AND COUNCIL.
THANKS FOR ALLOWING US TO BE HERE TODAY.
AS YOU ALL HAVE HEARD, OUR REVENUE SOURCES FOR OUR ENTITIES COME DIRECTLY FROM THE CITY STAFF, AND SO WE APPRECIATE THE CITY STAFF AND HOW THEY WORK WITH US TO GET US THAT INFORMATION IN A NICE TIMELY MANNER.
IT'S BEEN A GOOD EXPERIENCE THIS YEAR, AS WELL.
OUR SALES TAX NUMBERS ARE GOING TO BE DOWN JUST LIKE Y'ALLS ARE.
WE DO HAVE THE LUBBOCK BUSINESS PARK TIF REIMBURSEMENT OF 1.2 MILLION THAT YOU HEARD ABOUT IN THE TIF PRESENTATION EARLIER.
THIS PAST YEAR, WE DID A PROJECT THAT WAS A JOINT CITY COUNTY PROJECT, THAT WAS TO HELP DO THE STREET OUT THERE WEST OF LA PRINO FOR DFA, DAIRY FARMERS OF AMERICA, AND THEIR FACILITY.
WE DON'T HAVE THAT REVENUE THIS YEAR, UNLESS YOU JUST WANT TO SEND US ANY ADDITIONAL REVENUE.
WE WOULD LOVE TO HAVE IT, BUT THAT'S ONE REASON WHY THAT INCOME WAS IN THIS LAST YEAR, BUT NOT IN THIS NEXT ONE.
WE DO ANTICIPATE USING SOME CONSIDERABLE NET ASSETS IN THIS UPCOMING YEAR.
WE WON'T BE USING QUITE AS MANY NET ASSETS AS WE ANTICIPATED IN THIS BUDGET, BUT SOME OF OUR PROJECTS ARE SHIFTING.
WHERE WE THOUGHT WE WERE GOING TO GET IT DONE BY THE END OF SEPTEMBER THIS YEAR, IT ACTUALLY HAS BEEN MOVED TO NEXT YEAR.
THAT'S ONE REASON WHY THAT CONTINUES TO REMAIN HIGH ON THAT.
FROM A COMPENSATION STANDPOINT, WE HAVE SALARY ADJUSTMENTS BUDGETED AT 2.5% INCREASE.
WE HAVE HAD TO FILL QUITE A FEW VACATED POSITIONS OVER THE LAST SIX MONTHS, AND THOSE HAVE BEEN AT CURRENT MARKET WAGES.
WE DO HAVE ANTICIPATED SOME, DUAL POSITIONS FOR AN EARLY PART OF THE YEAR.
BUT OVERALL, WE'RE PLEASED THAT BENEFITS HAVE ACTUALLY GONE DOWN, AND A LOT OF THAT'S BECAUSE WE HAD OUR LEVEL FUNDED HEALTH INSURANCE PLAN, THAT WE PUT IN PLACE LAST YEAR HAS HELPED US TO REMAIN REAL COMPETITIVE THERE.
[01:50:01]
IN OUR ADMINISTRATIVE COSTS, WE HAVE SOME AREAS WHERE WE THOUGHT WE WERE HAVING PROFESSIONAL SERVICES ALL THE TIME, AND IN REALITY, THEY ARE MORE OF A LICENSE NOW AS OPPOSED TO A PROFESSIONAL SERVICE.WE'VE TAKEN SOME ITEMS THAT WERE EXPENSES IN ONE AND MOVED THEM TO THE OTHER.
BUT FOR THE MOST PART, THAT CATEGORY IS UP BECAUSE OF SOME ADDITIONAL LICENSES THAT WE'VE BEEN GETTING TO HELP MAKE US A LOT MORE EFFICIENT WITH SOME OF OUR PROGRAMS, FOR EXAMPLE, BEING ABLE TO PULL DATA INTO ONE FILE, AND GET IT TO GO TO ALL THE RIGHT PLACES, INCLUDING THE WEBSITE SO THAT IT CAN BE GOOD AND ACCURATE INFORMATION AND ALSO TIMELY.
THAT'S WHAT SOME OF THAT INFORMATION IS ON FOR US.
OUR OFFICE RELATED EXPENSES ARE RELATIVELY FLAT.
OUR MARKETING AND SALES ARE RELATIVELY FLAT, OUR BUSINESS INCENTIVES ARE RELATIVELY FLAT.
WE DO STILL HAVE SOME CAPITAL IMPROVEMENT PROJECTS THAT WE ARE PLANNING TO DO.
WE DO KNOW THAT PLANT AGRICULTURE SYSTEMS CONTINUES TO LOOK TOWARDS THE FIRST OF THE NEXT CALENDAR YEAR TO BEGIN CONSTRUCTION.
WE BUDGETED IN THIS YEAR OUR WATER LINE TO BE ACTUALLY CONSTRUCTED.
WE'VE BEEN DOING THE ENGINEERING PROCESS ON IT.
THEN ALSO WE HAVE A LIFT STATION ENFORCED MAIN FOR THEM, THAT'S ALREADY BEEN ENGINEERED THAT WE'RE WAITING FOR THEIR CONSTRUCTION TO START BEFORE WE IMPLEMENT AS WELL.
WE ALSO HAVE AS PART OF THE REIMBURSEMENT BY THE TIF, ONE OF OUR CAPITAL EXPENSES IS THE EAST HUNTER EXTENSION THAT'S IN THE BUSINESS PARK.
IT'S JUST NORTH OF VERIZON AND AMAZON'S FACILITIES THAT ARE ON THE EAST SIDE OF THE BUSINESS PARK.
IT'S JUST A LITTLE SMALL EXTENSION THAT CONNECTS THE INTERNAL ROADS OF THE BUSINESS PARK WITH MLK.
THEN WE ARE LOOKING LONG TERM AS WELL, ABOUT THE GROWTH OF LUBBOCK AND HOW WE NEED TO FIND NOT ONLY A BUSINESS PARK THAT IS NOT NEAR OTHER HOUSING.
THAT'S BEEN A HUGE CONCERN FOR MANY COMMUNITIES, INCLUDING LUBBOCK TO MAKE SURE THAT OUR BUSINESS AND INDUSTRY CAN GROW AND NOT BE RIGHT NEXT DOOR TO A NEIGHBORHOOD.
WE'VE LOOKED AT THE FAR NORTH LUBBOCK AREA.
AS WE'VE BEEN HAVING CONVERSATIONS WITH CITY STAFF, IT'S BECOME QUICKLY APPARENT THAT A WATER TOWER IS GOING TO BE NECESSARY TO BE UP THERE TO HELP WITH FIRE SUPPRESSION.
WE KNOW THAT THAT'S A PRETTY SIGNIFICANT COST STANDPOINT FOR US.
ONE OF THE BIG THINGS THAT WE'VE PLANNED FOR THIS UPCOMING YEAR IS THE ENGINEERING RELATED TO THAT.
WE CAN'T LAND ANOTHER DEAL IN NORTH LUBBOCK UNTIL WE ACTUALLY HAVE THE WATER TOWER IN PLACE.
WE'VE BEEN VERY CAREFUL ABOUT WHAT PROJECTS WE PUT UP THERE IN NORTH LUBBOCK.
WE'VE GOT QUITE A FEW THAT ARE LOOKING AT A COUPLE OF DIFFERENT PIECES OF PROPERTY AT THE MOMENT.
ONE THING THAT WE FEEL WE NEED TO MOVE FORWARD ON IS AT LEAST HAVING THE ENGINEERING DONE ON THAT WATER TIRE, SO THAT WE CAN START CONSTRUCTION ON IT AS SOON AS POSSIBLE.
WHEN IT'S TIME WITH A COMPANY GOING IN PLACE UP THERE.
>> ASK A COUPLE OF QUESTIONS THAT I THINK I ACTUALLY KNOW THE ANSWER TO.
>> ONE EIGHTH OF 1%. THE AVAILABLE AMOUNT OF SALES TAX PROVIDED BY THE STATE, HAD IT BEEN ELECTED BY THE CITY, IS HOW MUCH?
>> I'M SORRY, SAY THAT ONE MORE TIME.
>> LET ME JUST MAKE THE STATEMENT.
STATE ALLOWED 1.5 PENNY FOR SALES TAX, AND THE CITY OF LUBBOCK ADOPTED ONE EIGHT.
>> THAT'S CORRECT. THE STATE WILL ALLOW A MAXIMUM 1.5 OF 1%, BUT IT'S ALSO OF WHATEVER IS AVAILABLE.
IF THE CITY HAS NONE AVAILABLE, THEY'RE NOT ALLOWED TO DO IT BEYOND.
>> WE COULDN'T ADD ANY MORE TODAY IF WE WANTED TO.
>> NO, SIR. AN ENTITY THAT CURRENTLY COLLECTS SALES TAX, AND WOULD HAVE TO GIVE SOME UP.
I WOULD LOVE FOR THE STATE TO GIVE UP A PORTION OF THEIR 6.75%. THAT'D BE FANTASTIC.
BUT I GUESS THE POINT I WANT TO MAKE AT ONE EIGHTH PENNY, YOU OPERATE ON ESSENTIALLY 25% OF THE AVAILABLE, FUNDS THAT THE STATE WOULD HAVE ALLOWED AN ECONOMIC DEVELOPMENT ORGANIZATION TO HAVE COLLECTED.
YOU OPERATE ON 25% OF THE AVAILABLE REVENUE STREAM THAT, OUR NEIGHBORS TO THE NORTH COLLECT.
>> TO THE SOUTH AND EAST BOTH.
AT MIDLAND ODESSA, AMARO, ABLEND, FRISCO IS AT A HALF PERCENT.
THE LARGER CITIES THEY DON'T COLLECT A SALES TAX.
[01:55:02]
IT IS FOR CITIES THAT ARE LESS THAN A HALF MILLION IN POPULATION, AND IT IS MEANT TO HELP, EVEN THE PLAYING FIELD FOR SMALL AND RURAL AREAS TO BE ABLE TO COMPETE WITH THE URBAN AREAS THAT HAVE ALL THE INFRASTRUCTURE AND THE PERSONNEL AND AND THE AVAILABLE BUILDINGS.THIS IS A POT OF MONEY THAT'S SPECIFICALLY DESIGNED TO BE ABLE TO ATTRACT COMPANIES, PROVIDE SKILLED TRAINING, TO BE ABLE TO BUILD INFRASTRUCTURE AND HELP ADVOCATE FOR COMPANIES TO BE IN OUR AREA.
>> WELL, I THINK, TO COMMEND THE LITA TEAM, IF I COULD, WHICH IS THE LUBBOCK WAY, OF COURSE, BUT WE DO MORE WITH LESS THAN ANY OF OUR NEIGHBORING CITIES, RELATIVE TO OUR SIZE AND OUR SALES TAX COLLECTIONS.
WHEN YOU THINK ABOUT LANDING A PROJECT LIKE CAPRINO OR MONSANTO BEAR, AND NOT HAVING TO FUND THE INFRASTRUCTURE THAT YOU MIGHT HAVE HAD TO FUND OR COULD HAVE FUNDED BUT STILL LANDING THOSE PROJECTS IN LUBBOCK, I WANT TO TIP MY HAT TO WHAT YOU GUYS DO THE HARD WORK AND SKILL SET THAT YOU GUYS BRING TO THE TABLE WHEN IT COMES TO NEGOTIATING WITH COMPANIES WHO COULD CHOOSE TO BE ANYWHERE IN THE STATE OR ANYWHERE IN THE COUNTRY FOR THAT MATTER AND CHOOSE LUBBOCK BECAUSE OF THE PRESENTATION THAT YOU GUYS MAKE, AND SO I WANT TO SAY THANK YOU FOR THAT.
>> JOHN, REALLY QUICKLY ON THE EXPENSE SIDE, YOUR INCENTIVE PAYMENTS, AS YOU'VE GOT FOUR MILLION.
IS THAT EMPLOYEE INCENTIVES OR BUSINESS INCENTIVES?
>> BUSINESS INCENTIVES. YES, MA'AM.
ON OUR BUSINESS INCENTIVES, THAT WOULD BE ANY CASH PAYMENTS THAT WE'RE DOING FOR JOB CREATION INCENTIVES, CAPITAL INVESTMENT GRANTS, THINGS OF THAT NATURE THAT GO DIRECTLY THOSE COMPANIES.
>> ANY FURTHER QUESTIONS? THANK YOU.
>> MOVING ON TO MARKET LUBBOCK.
AGAIN, OUR REVENUES COME DIRECTLY FROM THE CITY, AND AS YOU HEARD THAT THERE WAS A DECREASE IN THE FUNDS THAT WERE COMING TO MARKET LUBBOCK, AND SO WE'RE AT 3.1 MILLION ROUGHLY.
WE DO HAVE A UTILIZATION OF NET ASSETS, AND I'LL TALK ABOUT THAT PROJECT HERE IN JUST A MINUTE.
A LOT OF THE NET ASSETS THAT WE WILL BE USING ARE RELATED TO THE BALL FIELDS OUT OF THE TOM MARTIN COMPLEX.
COMPENSATION IS AT THE 2.5%, AGAIN, THE SAME AS LITA.
THAT'S TRUE ACROSS ALL OF THE DIFFERENT ENTITIES.
THE PROFESSIONAL DUES AND SERVICES, WE DO HAVE SOME SUBSCRIPTIONS THAT WE'VE ALLOCATED AMONGST ALL THE THREE ENTITIES, AND THAT'S ONE REASON WHY THAT'S UP JUST A LITTLE BIT.
OUR SPECIAL PROJECTS ARE GOING TO BE DOWN JUST EVER SO SLIGHTLY.
THAT'S PARTIALLY BECAUSE IN THE CURRENT BUDGET YEAR, WE'VE ALREADY PAID $475,000 FOR, THE ENGINEERING TO BE DONE AT THE TOM MARTIN COMPLEX.
THE REMAINING FUNDS THAT WE HAVE FOR THAT IS ABOUT 2.75 MILLION OR EXCUSE ME 2.25 MILLION.
THAT WOULD BE FOR THE ACTUAL CONSTRUCTION TO TAKE PLACE.
KOBE MAY BE IN THE ROOM, OUR PARKS AND REC DIRECTOR.
HE'S BEEN FANTASTIC TO WORK WITH.
PARK HILL IS CURRENTLY GOING THROUGH THEIR ENGINEERING, AND I CAN'T REMEMBER THE TIME FRAME ON IT, BUT IT SEEMS LIKE IT WAS EARLY NEXT YEAR, JANUARY OR SO MAYBE FEBRUARY, THAT THEY WERE GOING TO BE DONE WITH THE ENGINEERING, WAS IT A LITTLE LATER THAN THAT.
>> SHOULD BE AROUND NOVEMBER, DECEMBER.
>> NOVEMBER, DECEMBER, LATER THIS YEAR, THE ENGINEERING SHOULD BE DONE.
WE WOULD THEN START TO LOOK AT WHAT IS THE ACTUAL CONSTRUCTION, AND WE WOULD BE GOING OUT FOR BIDS ON THAT WITH THE ASSISTANCE OF THE CITY COUNCIL.
THEN ONCE THOSE BIDS CAME BACK AND WE DETERMINED WHAT THE FUNDS COULD BE USED FOR, THAT'S WHEN THOSE FUNDS WOULD THEN BE TRANSFERRED OVER TO THE CITY FOR THE USE OF THAT PROJECT.
THAT'S OUR BIG SPECIAL PROJECT THAT WE HAVE IN MARKET LUBBOCK.
WE CONTINUED TO DO OUR GRANT PROGRAMS FOR DOWNTOWN AND FOR OUR COMMERCIAL REVITALIZATION AREA.
WE APPRECIATE THE COUNCIL'S SUPPORT OVER THIS PAST YEAR.
JORGE TELLS ME THAT HE KEEPS TRACK OF ALL THE DIFFERENT PROJECTS AS THEY COME THROUGH THAT PROCESS, AND WE HAVE HAD SOME THAT DON'T QUALIFY ANYMORE, BUT WE ALSO HAVE SOME THAT HAVE QUALIFIED FOR MORE AS A RESULT OF THE TYPE OF IMPACT THAT THEY'VE HAD.
WE FEEL THERE'S BEGINNING TO GET EVEN GREATER MOMENTUM IN THE DOWNTOWN AREA.
WE'RE APPRECIATIVE THAT YOU WILL ALLOW US TO DO THAT PROJECT.
HAPPY TO ANSWER ANY QUESTIONS ON MARKET LUBBOCK.
[02:00:01]
>> ANY QUESTIONS? OTHER THAN THE TOM MARTIN BALL FIELDS, WHAT ARE THE OTHER SPECIAL PROJECTS? ARE THERE ANY OTHER SPECIAL PROJECTS?
>> THAT'S THE BULK OF THE SPECIAL PROJECTS.
WE'VE GOT SOME OTHER THINGS THAT WE DO FOR OUR TRAINING AND HELPING WITH OUR HIGH DEMAND JOB TRAINING EFFORTS THAT ARE DONE THROUGH MARKET LUBBOCK AND SOME OF OUR MARKETING EFFORTS THAT ARE DONE THROUGH THERE.
I DON'T THINK I'VE GOT ANYTHING ELSE THAT IT WAS SOME WORKFORCE INITIATIVES THAT COULD COME OUT OF MARKET LUBBOCK THAT ARE UTILIZED THERE FOR OUR SPECIAL PROJECTS.
>> JOHN, I BELIEVE THAT I UNDERSTAND THAT MONIES FROM MARKET LUBBOCK CAN BE USED FOR ECONOMIC DEVELOPMENT.
THOSE MONIES CAN BE TRANSFERRED INTO LIDA FOR USE ON A PARTICULAR PROJECT.
>> I STARTED HERE IN 2010, AND MY PREDECESSOR PRIOR TO THAT WAS TRANSFERRING ABOUT $3 MILLION A YEAR FROM MARKET LUBBOCK TO LIDA TO HELP WITH LIDA-RELATED PROJECTS.
THAT WAS KIND OF ORIGINALLY WHAT IT WAS DESIGNED FOR WAS TO DO WHAT I CALL TRADITIONAL ECONOMIC DEVELOPMENT OF JOBS AND CAPITAL INVESTMENT, AND TRYING TO ENCOURAGE BUSINESSES TO BE HERE.
HE COULD HAVE TECHNICALLY SPENT THEM OUT OF MARKET LUBBOCK FOR THE SAME REASON, BUT THAT WAS THE POLICY THAT THEY DID BACK THEN.
WE DID THAT UP UNTIL MAYBE THE MID-2010S TIME PERIOD, AND THEN WE SHUT THAT DOWN BASED ON THE COUNCIL'S REQUEST TO KEEP MORE FUNDS IN MARKET LUBBOCK FOR MORE COMMUNITY-RELATED PROJECTS.
THEN ONCE WE HAD WON THE LA PRINO DEAL, WE ASKED THE CITY COUNCIL IF WE COULD TRANSFER $1 MILLION A YEAR FOR FIVE YEARS TO HELP WITH THE LA PRINO FOODS PROJECT, AND THE COUNCIL WAS SUPPORTIVE, AND SO WE WERE APPRECIATIVE OF IT.
JENNA, DO YOU RECALL WE HAVE TWO MORE YEARS OF THAT, AND THEN WE'LL BE FINISHED WITH THE FIVE YEARS.
>> ONE OF THE THINGS THAT I WOULD POINT OUT ABOUT LIDA AND MARKET LUBBOCK IS THEY ARE THEY'RE REALLY KIND OF CHARGED TO BE PREPARED TO ASSIST COMPANIES WHEN THEY CHOOSE TO CONSIDER LUBBOCK.
WHILE YOU LOOK AT PROJECTS THAT MAY REQUIRE SPECIAL ASSISTANCE, WHATEVER THAT MIGHT BE, YOU DON'T KNOW WHAT IT IS UNTIL SOMEBODY KNOCKS ON YOUR DOOR.
THE POINT I WANT TO MAKE WITH THAT IS, I THINK IT'S IMPORTANT THAT WE RECOGNIZE THAT HAVING CAPITAL IN MARKET LUBBOCK OR IN LIDA HELPS US RESPOND TO THAT COMPANY THAT CHOOSES LUBBOCK OR WANTS TO CHOOSE LUBBOCK.
HOW CAN WE ASSIST THAT COMPANY? IN MY EXPERIENCE WITH LIDA, WE'RE NOT PAYING COMPANIES TO COME HERE.
WE'RE ASSISTING THEM WITH THE PROBLEMS THAT THEY NEED TO SOLVE.
WE'RE NOT BUYING THEIR BUSINESS.
I THINK THAT CAN BE SAID OF MONSANTO AND BAYER.
IT CERTAINLY CAN BE SAID OF LA PRINO.
THEY CHOSE TO COME TO LUBBOCK, AND WE HELPED THEM TO OVERCOME SOME OF THE CHALLENGES THAT THEY HAD IN THEIR RELOCATION OR THEIR NEW PROJECT.
WHEN WE LOOK AND CONSIDER, WHY IS THEIR MONEY SITTING HERE? WHY ARE THERE FREE CAPITAL? WHY ARE THEIR DOLLARS SITTING IN THESE FUNDS? IT'S VERY IMPORTANT THAT YOU BE ABLE TO REACT TO WHATEVER THAT PROJECT MAY BE, IS THAT FAIR?
>> YES, SIR. A LOT OF THE SALES TAX FOR ECONOMIC DEVELOPMENT-TYPE ORGANIZATIONS AROUND THE STATE HAVE A FUND BALANCE, AND IT'S SO THAT THEY CAN MOVE QUICKLY AT THE SPEED OF BUSINESS.
THAT THEY CAN FUND INFRASTRUCTURE TO BE PUT IN PLACE, THAT THEY HAVE THE CAPITAL TO HELP WITH ANY INCENTIVE PROGRAMS THAT ARE NECESSARY.
LIDA IS NO DIFFERENT, AND WE HAVE TRADITIONALLY USED MARKET LUBBOCK FOR MANY OF THOSE SAME ABILITIES TO TRY TO BE ABLE TO WIN DEALS AND GET THEM TO COME TO LUBBOCK.
WHEN WE HAVE FUNDS THAT ARE AVAILABLE, WE SPECIFICALLY DON'T JUST SPEND THEM FOR THE SAKE OF SPENDING.
WE SEE THAT LONG-TERM THERE IS SOME SIGNIFICANT CAPITAL NEEDS FOR THE DEVELOPMENT OF AREAS FOR BUSINESS TO GO INTO AND MANY OF THOSE AREAS AND MANY OF THOSE NEEDS, THE CITY OF LUBBOCK IS NOT GOING TO HAVE THE CAPABILITY TO ASSIST WITH GOING FORWARD, AND THAT THEN FALLS BACK ON OUR BACKS TO TRY TO HELP IN THAT CASE TO HELP GET THOSE AREAS DEVELOPED AND TO BRING IN THOSE JOBS.
>> WELL, YOU MADE THE POINT EARLIER ABOUT THE WATER TREATMENT, NOT WATER TREATMENT, BUT THE WATER STORAGE FACILITY.
WE GET HAMSTRUNG IF WE DON'T HAVE THAT FACILITY IN PLACE OR THE FUNDS TO BUILD IT.
I CERTAINLY, WHEN WE TALKED TO THE CITY MANAGER OR OTHERS TO SAY WE HAD AN EXTRA 10 OR $12 MILLION TO BUILD A WATER TOWER FOR A PROJECT THAT COMES TO TOWN,
[02:05:06]
IT DOESN'T EXIST, AND SO WE PUT THAT BURDEN ON YOU GUYS.WE HAVE TO ALLOW SOME FUNDS TO BE ACCUMULATED IN THOSE ACCOUNTS IN ORDER TO BE RESPONSIVE WHEN THAT HAPPENS.
WHAT WE'VE SEEN IN THE HISTORY OF LIDA AND LUBBOCK, IT'S NOT IF THAT HAPPENS.
THERE WILL BE A PROJECT THAT COMES TO LUBBOCK AND IS GOING TO NEED THAT WATER TOWER, AND WE'RE GOING TO LEAN ON YOU.
WE'RE GOING TO NEED TO ALLOW FOR THE ACCUMULATION OF SOME OF THOSE DOLLARS THERE AND UNDERSTAND WHY, AND IT'S TO BE ABLE TO MOVE AT THE SPEED OF BUSINESS, AS YOU MENTIONED EARLIER.
>> JOHN, LOOKING AT YOUR EXPENSE REPORT HERE FOR MARKET LUBBOCK.
I KNOW WE DO THE ONE MIL TRANSFER OVER INTO LIDA FROM MARKET LUBBOCK, CORRECT?
>> IS IT SOMEWHERE ON THE EXPENSE? I DON'T SEE A LINE ITEM FOR THAT TRANSFER.
>> THE EXPENSES UNDER OUR GRANT PROGRAM.
>> I THOUGHT YOU SAID, BUT THAT WAS THE GRANTS FOR THE DOWNTOWN GRANTS.
IS THE DOWNTOWN GRANTS PAID OUT OF LIDA OR IS IT PAID OUT OF MARKET LUBBOCK?
>> THE GRANTS ARE PAID OUT OF MARKET LUBBOCK TO LIDA.
>> I THOUGHT YOU SAID THAT MILLION WAS OUR DOWNTOWN GRANT, LIKE FACADE, ALL THAT PROGRAM RIGHT THERE.
IS IT FOR TRANSFER OR FOR THE GRANT PROGRAM?
>> IN OUR BUSINESS INCENTIVES AND SPECIAL PROJECTS, WE ACTUALLY HAVE TWO LINES THAT SAY GRANTS.
ONE SAYS, GRANTS, AND IT'S 1,000,075.
THAT IS $1 MILLION THAT GOES TO LIDA AND 75,000 THAT GOES TO THE LUBBOCK CULTURAL ARTS FOUNDATION TO HELP WITH THAT PROJECT.
THEN WE HAVE A GRANTS PROGRAM THAT'S FOR DOWNTOWN AND CRGP, AND THAT'S 1.175 MILLION.
THEN WITHIN THAT SAME WHOLE CATEGORY, WE ALSO HAVE OUR SPECIAL PROJECTS AND BUSINESS INCENTIVES.
MY APOLOGIES, WE'LL WORK ON RENAMING THAT. WE HAVE TWO GRANTS.
ONE IS DIRECTLY TO LIDA, AND THE OTHER ONE IS FOR OUR DOWNTOWN GRANTS THAT WE'RE ASSOCIATED WITH THAT.
>> THE DOWNTOWN GRANTS, LIKE OUR FACADE PROGRAM, IS COMING OUT OF THE SPECIAL PROJECTS.
AM I MISSING A GRANTS LINE? IS IT OUT OF THE SPECIAL PROJECTS LINE? I JUST WANT TO MAKE SURE I KNOW WHICH ONE'S COMING OUT OF.
>> I'M LOOKING AT YOUR SCREEN NOW INSTEAD OF MY PIECE OF PAPER, SO THAT'LL MAKE US BOTH TALK ON THE SAME WAVELENGTH.
UNDER THE GRANTS PROGRAM, THAT IS THE MILLION DOLLARS TO LIDA AND 75,000 TO THE LUBBOCK CULTURAL ARTS FOUNDATION.
STACY KEITH RUNS THAT OPERATION.
YOU ALL HAVE LISTED THE SPECIAL PROJECTS THERE AT 3515, I MISSING IT, CHERYL?
>> THAT'S WHAT I'M TRYING TO. IS IT ALL WRAPPED UP INTO SPECIAL PROJECTS, OR ARE WE MISSING A GRANT LINE FOR THE FACADE GRANTS?
>> I THINK WHAT WE'VE GOT IS UNDER BUSINESS INCENTIVES. I SEE WHAT IT IS.
YOUR INCENTIVE PAYMENTS WHAT THAT IS IS A COMBINATION OF TWO OF MY LINE ITEMS ON MY PIECE OF PAPER AND THAT WOULD BE THE BUSINESS INCENTIVES OF 125,000, AND THEN OUR GRANT PROGRAMS OF 1.75 MILLION, AND THAT'S FOR THE DOWNTOWN AND CRGP.
>> THEY'RE UNDER INCENTIVE PAYMENT?
THEY WEREN'T MATCHING THE FAMILY SELL THE ONE GRANT. THANK YOU FOR CLARIFYING.
>> MY APOLOGIES. I REALLY SHOULD USE YOUR SCREEN.
I'M JUST SO USED TO MY PIECE OF PAPER.
>> OTHER QUESTIONS ON MARKET LIMIT?
>> ANY OTHER QUESTIONS FOR MR. OSBORNE? WELL, JUST TO FOLLOW ON TO WHAT MR. COLLINS HAD SAID, I THINK THAT OTHER THREE EIGHTH PENNIES WAS THE CITIZENS VOTED TO USE THAT FOR REDUCTION IN PROPERTY TAX.
IT'S NOT LIKE WE DIDN'T CAPTURE THAT VALUE IN SOME WAY, WE CHOSE TO USE IT DIFFERENTLY, BUT THE 18 THAT THEY GET IS SIGNIFICANTLY LESS THAN OTHER CITIES HAVE TO WORK WITH AND THEY DO A GREAT JOB, IN BRINGING US BUSINESSES WITH THEIR WORK.
>> ANY OTHER QUESTIONS? YES. MAYOR PRO TEM.
>> JUST FOR THE PUBLIC TO UNDERSTAND YOUR SPECIAL PROJECTS, WILL YOU LET THEM KNOW? I KNOW WE HAVE THE CULTURAL ARTS.
IS THAT WHERE WE HAVE HELPED, ALSO, LIKE, BURL HUFFMAN?
>> IN THE PAST, MARKET LUBBOCK HAS HELPED WITH THE REDOING OF BURL HUFFMAN.
I THINK WE FINISHED THAT PROJECT IN 2020, I THINK WE STARTED IN 2019.
THAT'S WHAT BROUGHT THOSE TURF FIELDS, THERE WAS NINE ACRES OF TURF WITH LIGHTS AND ALL OUT TO BURL HUFFMAN.
THEN THAT IS ALSO THE LINE ITEM THAT WE ARE LOOKING TO USE 2.25 MILLION OUT OF FOR OUR ASSISTANCE WITH THE TOM MARKETING COMPLEX. YES, MA'AM.
[02:10:03]
>> COULD WE FUND A WATER PARK, AQUATIC CENTER, JUST ASKING.
>> BACK IN THE BURL HUFFMAN DAYS, THE CITY WAS ASKING, THEY WANTED TO SEE MORE SOCCER TOURNAMENTS.
THEY WANTED OUR LOCALS TO BE ABLE TO STAY HERE AND NOT HAVE TO TRAVEL AS MUCH, AND THERE WAS A REQUEST COULD THERE BE FUNDS THAT ARE PUT TOGETHER SPECIFICALLY FOR BURL HUFFMAN? IN THIS PARTICULAR CASE, WE'VE HAD A LOT OF CONVERSATIONS WITH PARKS AND REC DEPARTMENT AND CITY STAFF ABOUT THE NEEDS FOR ADDITIONAL BALL FIELDS AND THE CONDITION OF THE CURRENT BALL FIELDS.
THERE'S BEEN INDICATION TO US THAT THAT'S BEEN MORE OF THE PRIORITY.
WE ONLY HAVE SO MANY FUNDS, AND SO WE'RE HAPPY TO SEPARATE THOSE OUT AND TO SHIFT THEM AROUND.
IT WILL DILUTE THE ABILITIES TO ACTUALLY DO ANY ONE PARTICULAR PROJECT TO THE QUALITY THAT WE NEED TO DO TO BE ABLE TO ATTRACT THE TOURNAMENTS THAT WE'RE TRYING TO ATTRACT.
BUT IF THERE'S A DIFFERENT EMPHASIS THAT WE NEED TO DO, I WISH WE VOTED ON THAT EARLIER BECAUSE WE'RE ALREADY ENGINEERING ON THE BALL FIELDS AT THE MOMENT.
>> I KNOW THAT THE TOURNAMENTS ALSO BRING DOLLARS.
>> I KNOW THAT THAT'S IMPORTANT.
WHAT I THINK IS ALSO OF INTEREST TO THE PUBLIC, IS BECAUSE IT IS ALSO SUPPOSED TO SUPPORT RECREATIONAL OPPORTUNITIES FOR LOCAL SO THAT'S WHY I WAS ASKING.
>> YES, MA'AM. HAVING AS MANY TOURNAMENTS AS WE CAN AND MAXIMIZING THOSE FIELDS BRINGS A LOT OF ECONOMIC OPPORTUNITY FOR US.
NOT ONLY IS IT JUST RENT TO THE CITY FROM A PARK STANDPOINT, BUT PROBABLY EVEN FAR GREATER IS THE FACT THAT THEY EAT OUT, THEY SPEND THE NIGHT AT OUR HOTELS, THEY SHOP, MANY OF THEM FORGET THINGS, AND THEY WANT TO GO BUY STUFF, OR THEY JUST WANT TO GO TO THE MOVIES AND DURING THEIR DOWNTIME.
>> I MIGHT JUST ADD, AGAIN, BACK TO THE ONE-EIGHTH OF ASCENT.
A LOT OF HELP ASSISTANCE COMES TO LIDA FROM OUR OWN STAFF.
IT'S NOT A LINE ITEM IN OUR BUDGET, SO TO SPEAK, BUT I KNOW OUR STAFF DO WORK VERY HARD WITH YOU AND CONTRIBUTE ALL OF TIME AND EFFORT.
THERE IS ACTUALLY MORE EFFORT THAT GOES INTO IT THAN ACTUALLY JUST SHOWS UP IN YOUR BUDGET WHEN IT COMES TO WHAT GOES INTO GETTING THESE BUSINESSES IN.
>> ABSOLUTELY. THAT'S A GREAT POINT, MAYOR.
THE CITY STAFF IS INVALUABLE TO US WHEN WE'RE WORKING ON PROJECTS.
WE WORK VERY HARD TO NOT JUST WASTE THEIR TIME, BUT OFTENTIMES THERE'S QUESTIONS THAT NEED TO BE ADDRESSED AND ANSWERED THAT ONLY CITY STAFF KNOWS THE ANSWERS TO.
THANKFULLY, NOT ONLY DOES OUR CITY MANAGER, BUT ALSO OUR BUSINESS DEVELOPMENT DEPARTMENT AND BRIANA HELPS TO COORDINATE ALL OF THOSE EFFORTS TO MAKE SURE THAT WE GET THE RIGHT PEOPLE AT THESE MEETINGS.
IT'S ONE REASON WHY WE WIN THE DEALS LIKE LA PRINO.
THEY SEE THE JOINT EFFORT THAT EVERYBODY HAS AND WORKING TOGETHER.
>> THANK YOU VERY MUCH. THANK YOU, MR. OSBORNE.
>> TALKING THROUGH VISIT LUBBOCK, AND IF I'M NOT MISTAKEN, YOU HAD PROBABLY TWO SLIDES, VISIT LUBBOCK, AND IF YOU SLIDE ONE MORE FOR ME, JOE, YOU ALSO HAVE THE LUBBOCK SPORTS AUTHORITY.
WAY BACK WHEN, THOSE TWO WERE SEPARATE ENTITIES, AND AT SOME POINT, THE POWERS THAT B DECIDED THAT THEY NEEDED TO PUT THEM UNDERNEATH MARKET LUBBOCK AS A DBA.
FROM THAT POINT ON, OR THEY WONDERED AT THAT POINT, WOULD THIS ACTUALLY WORK? THEY'VE CONSTANTLY FUNDED IT SEPARATELY.
BUT IN REALITY, WE TREATED IT ALL AS THE SAME.
WHEN I'M TALKING ABOUT VISIT LUBBOCK, MOST OF THE TIME, I'M ACTUALLY TALKING ABOUT ALL OF VISIT LUBBOCK AND ALSO THE LUBBOCK SPORTS AUTHORITY.
THEN THERE'S SOME TIMES WHEN I'M ONLY TALKING ABOUT THE LUBBOCK SPORTS AUTHORITY, BECAUSE I'M TALKING TO A TOURNAMENT ORGANIZER THAT REALLY DOESN'T NECESSARILY UNDERSTAND THE POINT OF VISIT LUBBOCK, AND SO AT THAT POINT, I'M ONLY BRANDING IT AS LUBBOCK SPORTS AUTHORITY.
WE HAVE A COMBINATION OF THOSE TWO, AND WHAT OUR INFORMATION IS.
THE HOTEL OCCUPANCY TAX DOLLARS THAT HAVE COME TO US ARE TOLD TO US AT WHAT THE CITY HAS MENTIONED TO US, AND THAT LEVEL HAS REMAINED LEVEL FOR A NUMBER OF YEARS, CONTINUES TO REMAIN LEVEL FOR US.
OUR COMPENSATION MERIT-BASED SALARY ADJUSTMENTS ARE UP TO 2.5%, LIKE WE'VE MENTIONED BEFORE.
WE DID HAVE SOME PROFESSIONAL DUES AND LICENSING THAT WE'VE ADDED TO IT, BUT SOME PROFESSIONAL SERVICES THAT HAVE COME DOWN BECAUSE OF HOW WE'VE RECLASSIFIED SOME THINGS.
WE DID END UP GIVING BACK SOME RENT SPACE THAT WE HAD.
WHEN WE DID, WE SPLIT GARY LAWRENCE BACK IN THE DAY, HAD SET IT UP TO WHERE VISIT LUBBOCK PAID FOR THIS, AND LIDA PAID FOR THAT.
AND IN REALITY, NOW WE'RE JUST TAKING THE WHOLE SPACE AND JUST SPLITTING IT DOWN THE MIDDLE.
THERE'S JUST A LITTLE EXTRA RENT THERE.
[02:15:04]
THE BIGGEST ASPECT OF ALL THE CHANGE FOR US AMONGST OUR SPORT SALES AND MARKETING AND SPORT SERVICING.WE'VE GOT A HUGE NUMBER OF SPORTING EVENTS THAT WE'RE ANTICIPATING THIS UPCOMING YEAR, AND WE'RE VERY EXCITED ABOUT IT.
BUT THE BIG NUMBER THAT'S IN OUR BUDGET THIS YEAR IS A TOURS AND CAPITAL IMPROVEMENT PROJECT OF JUST SHY OF $5 MILLION.
IT IS RELATED TO THE TOM MARTIN COMPLEX.
IT'S NOT JUST COMING OUT OF MARKET LUBBOCK.
IT IS ALSO COMING OUT OF OUR TOURISM DOLLARS.
AS OUR CITY MANAGER MENTIONED, THERE'S A TWO-PART TEST FOR THOSE EXPENDITURES TO BE ABLE TO BE DONE, AND THE TOM MARTIN COMPLEX DOES COUNT IN WHAT THOSE EXPENDITURES CAN GO FOR IN TERMS OF IMPROVEMENT.
DOES PUT A LITTLE BIT OF ONUS ON THE CITY TO MONITOR, MAKE SURE THAT WE CONTINUE TO HOST TOURNAMENTS THAT BRING IN HOTEL NIGHTS SO THAT WE GET THAT PAID BACK OVER TIME AS A COMMUNITY.
BUT THE WHOLE SCHEME OF THINGS ENDS UP BEING JUST SHY OF $5 MILLION FOR THAT PROJECT FROM VISIT LUBBOCK.
MYSELF AND CITIZENS WANTS TO KNOW WHEN ARE YOU EVER GOING TO ATTEMPT TO DEVELOP HOTELS AND RESTAURANTS BY THE AIRPORT?
>> WE WORK VERY CLOSELY WITH DEVELOPERS FOR BOTH HOTELS, RESTAURANTS, COULD BE APARTMENTS, COULD BE EVEN HOUSING.
WE GET A LOT OF REQUESTS FROM DEVELOPERS FOR JUST INFORMATION ABOUT WHAT'S GOING ON IN THE COMMUNITY.
WE SAW A HUGE UPTAKE IN THE TOTAL NUMBER OF HOTELS IN OUR COMMUNITY FROM 2014-2019, AND YET OUR OCCUPANCY RATES DIDN'T FALL AT ALL, SO IT SHOWED THAT THERE WAS A NEED FOR IT AND DEMAND FOR IT.
THERE STARTED TO BE A LOT OF BUZZ AROUND THE POTENTIAL FOR AN AIRPORT HOTEL.
I THINK THEY HAD A COUPLE OF STARTS AND SPUTTERS WITH A COUPLE OF DIFFERENT DEVELOPERS THAT WERE THAT WERE CONSIDERING BEING OUT THERE BY THE AIRPORT, AND ULTIMATELY THEN COVID HIT.
ONCE COVID HIT, IT'S CHANGED THE TOURISM WORLD JUST A LITTLE BIT.
IT'S TAKEN IT A LITTLE BIT LONGER FOR A LOT OF THE HOTELS TO BE ABLE TO COME BACK AND BE AT THE OCCUPANCY LEVELS THAT THEY NEEDED TO BE AT, AND ALSO THE STAFFING LEVELS THAT THEY NEEDED TO BE AT.
OUR AIRPORT DIRECTOR WE WORK VERY CLOSELY WITH WHEN SHE COMES ACROSS OPPORTUNITIES FOR DEVELOPMENTS TO BE OUT THERE, WHETHER IT'S A HOTEL OR I DON'T KNOW THAT WE'VE EVER LOOKED AT A RESTAURANT ON THE AIRPORT PROPERTY OTHER THAN INSIDE THE BUILDING.
BUT THE HOTELS THEMSELVES, SHE'S ALWAYS QUICK TO GIVE US A CALL AND SO THAT WE CAN COME OVER AND BE A PART OF THOSE CONVERSATIONS.
I THINK THAT AS WE CONTINUE TO SEE NORTH LUBBOCK DEVELOPED, AND AS WE SEE THE CITY CONTINUE TO GROW, OUR COUNTIES EXPECTED TO BE AT A HALF A MILLION IN POPULATION BETWEEN NOW AND 2060, WE'RE GOING TO SEE MORE AND MORE DEMANDS FOR HOTELS AND RESTAURANTS ALONG THE INTERSTATE, INCLUDING NORTH OF OUR COMMUNITY, AND ESPECIALLY AROUND THE AIRPORT.
>> I KNOW FOR A FACT I RECENTLY MET WITH SOMEONE THAT IS ACTUALLY LOOKING AT A HOTEL IN THAT AREA, AND SOME BUSINESS DEVELOPMENT ON MLK.
>> WONDERFUL. IF OUR OFFICE HASN'T MET WITH THEM, WE'D BE HAPPY TO DO SO IN A CONFIDENTIAL MANNER.
WE'VE GOT A LOT OF STATISTICAL INFORMATION THAT WOULD BE VERY HELPFUL TO DEVELOPERS AS THEY'RE LOOKING AT THE MARKETPLACE FOR WHAT THE OPPORTUNITY IS.
>> WE DID MENTION THAT. THE THING IS THAT, DURING COVID, A LOT, THERE WAS PROBABLY A LOT MORE ENERGY.
BUT ONE THING THAT WE FOUND FROM LOOKING AT SOME OF THE PAPERWORK, IT WAS STILL REFLECTIVE OF COVID PERIOD.
HOPEFULLY, THEY'LL MAKE SOME UPDATES, AND THAT WILL BE A POSITIVE FOR THAT AREA.
>> YOU MIGHT POINT OUT THE LIMITATIONS OF ECONOMIC DEVELOPMENT MONEY, AND THEIR USAGE.
THAT THEY CAN'T BE USED TO INCENTIVIZE THE DEVELOPMENT OF RETAIL RESTAURANT SPACES OR HOTEL SPACES.
>> THAT'S ONE OF THE CHALLENGES WITH EACH OF OUR THREE ENTITIES IS THAT WITH LITA, I'M NOT ALLOWED TO ACTUALLY INCENTIVIZE A HOTEL DEVELOPER OR A RESTAURANT BY STATE LAW.
IN VISIT LUBBOCK, I AM VERY CAREFUL BECAUSE IT'S SO LIMITED DOLLARS TO BE ABLE TO TRY TO ENCOURAGE DEVELOPMENTS TO TAKE PLACE.
THERE ARE SOME RULES, AND REGULATIONS AND WE SAW THAT ALLOW FOR DEVELOPMENT TO TAKE PLACE, AND WE SAW THAT WITH NORTH OR WITH THE OVERTON IN THE NORTH OVERTON AREA.
WITH THE DEVELOPMENT OF THAT MEETING SPACE THAT'S BEING PAID THROUGH HOT TAXES.
[02:20:04]
BUT THE FUNDS THAT COME TO US, WE REALLY DON'T USE THOSE TO INCENTIVIZE COMPANIES.WE'RE DOING THAT MORE TO TRY TO ENCOURAGE MORE, AND MORE VISITORS BECAUSE THE MORE, AND MORE VISITORS WE HAVE, THE MORE INCENTIVIZE COMPANIES ARE TO OPERATE A BUSINESS HERE, SUCH AS A HOTEL OR A RESTAURANT.
ANY OTHER QUESTIONS I CAN ANSWER FOR YOU?
>> I SEE NO. JOHN, I THINK WE'VE GOT TWO MORE SLIDES. WE'VE GOT THE CIVIC LUBBOCK.
>> ON THE LUBBOCK SPORTS AUTHORITY, I REALLY COMBINED ALL OF THAT WITH OUR CONVERSATION ON THE VISIT LUBBOCK SIDE.
IN TALKING WITH JERRE, HE MENTIONED THAT YOU ALL LIKE TO SEE WHERE WE STAND FROM A EMPLOYMENT SIDE OF THINGS.
OBVIOUSLY, THE WAY THAT WE HAVE TRIED TO BE IS THAT GIVEN OUR LIMITED NUMBER OF DOLLARS THAT WE DO HAVE IS TO BE AS EFFICIENT WITH THOSE AS POSSIBLE.
WE TAKE OUR MANAGEMENT TEAM, AND OUR MARKETING TEAM, AND WE ALLOCATE THOSE AMONGST ALL THE ENTITIES.
TECHNICALLY, I AM AN EMPLOYEE OF LITA, BUT MY SALARY IS ALLOCATED AMONGST THE OTHER ENTITIES.
WE HAVE OTHER PEOPLE THAT ARE AN ACTUAL EMPLOYEE OF VISIT LEVI, AND THEIRS MAY OR MAY NOT BE ALLOCATED TO OTHER ENTITIES DEPENDING ON IF THEY'RE IN THE MARKETING OR MANAGEMENT DEPARTMENTS.
THIS SLIDE HERE SHOWS YOU, GOING BACK TO 21/22, HOW MANY TOTAL EMPLOYEES OUR ENTITIES EMPLOY, AND WHAT OUR VACANCY RATE WAS FOR ALL OF OUR FULL TIME EMPLOYMENT? HAPPY TO ANSWER ANY QUESTIONS ON THAT.
>> DID YOU DO A PRESENTATION ON CIVIC LUBBOCK, OR IS SOMEONE ELSE GOING TO DO THAT?
>> MAYOR, I BELIEVE I HAVE A SLIDE OUT OF ORDER.
THIS RESERVE SHEET IS JOHN'S LAST SLIDE, THEN WE'LL JUMP BACK AND GRAB SEC LUBBOCK, MY APOLOGIES.
>> THEN, ALSO, AT THE REQUEST OF THE CITY MANAGER, WE'VE PUT TOGETHER FOR YOU WHERE WE ARE FROM A CASH STANDPOINT IN EACH OF OUR ENTITIES.
YOU'LL SEE LITA MARKET LUBBOCK, AND VISIT LUBBOCK.
THEN BECAUSE YOU ALL ARE USED TO SEEING THE CBB, AND LUBBOCK SPORTS SEPARATED, JOHN HAS INCLUDED THOSE TWO SEPARATED OUT BELOW.
THE TWO AT THE VERY BOTTOM, IF YOU WERE TO ADD THOSE UP, THEY EQUAL WHAT IS IN VISIT LUBBOCK. IF THAT MAKES SENSE.
OUR AVAILABLE CASH AS OF 93024 IS THE AUDITED NUMBER THAT CAME BACK FOR OUR ENTITIES.
WHAT WE ANTICIPATE ARE NET CHANGE IN EXCESS REVENUES TO TAKE PLACE IN THIS FISCAL YEAR IS IN YOUR NEXT COLUMN, OUR POLICY LEVEL RESERVES, AND THEN YOU SEE ON THE FAR RIGHT WHAT THE POLICY LEVEL IS FOR EACH OF OUR ENTITIES.
ONE EXAMPLE THAT I WOULD LIKE TO GIVE HERE IS THAT IT'S NOT SIX MONTHS OF BUDGET.
IT IS SIX MONTHS OF OPERATIONS.
WE DON'T INCLUDE ALL THE CAPITAL IMPROVEMENT PROJECTS, AND INCENTIVE PAYMENTS, AND THINGS LIKE THAT INTO OUR POLICY LEVEL RESERVES BECAUSE WE FEEL LIKE THAT'S NOT GOOD USE OF OUR FUNDS.
IT'S MORE ABOUT THE OPERATIONS OF THINGS.
THEN YOU HAVE WHAT WOULD BE OUR YEAR END FISCAL YEAR 25 FORECASTED EXCESS RESERVES, GIVING US THEN IN THAT NEXT COLUMN, WHAT WE PLAN TO SPEND, AND THE CHANGE IN EXCESS RESERVES, OUR USE OF NET, USE OF NET ASSETS, AND THEN GIVING US WHAT OUR TOTAL AT THE END OF FISCAL YEAR 26 RESERVES WOULD LOOK LIKE.
FOR LITA, THAT LEAVES US ABOUT JUST SHY OF $11 MILLION.
IF WE HAD TO DO THE WATER TIRE TODAY, IT'S AN $11 MILLION PROJECT MINIMUM.
THAT ONE PROJECT WOULD USE THE REMAINING AVAILABLE FUNDS THAT WE HAVE IN EXCESS OF RESERVES.
MARKET LUBBOCK, IT ACTUALLY TAKES US BELOW OUR SIX MONTHS POLICY TO FIVE MONTHS IN RESERVES.
SAME WITH VISIT LUBBOCK, AND THAT'S BECAUSE WE WANTED TO REMAIN INTACT, THE FUNDS THAT WOULD BE GOING FOR THE BALL FIELDS IN AN EFFORT TO TRY.
WE'RE HOPEFUL THOSE CONSTRUCTION DOCUMENTS WHEN THEY COME IN THE BIDS, WHEN THEY COME IN, THAT THEY COME IN LOWER THAN, AND ANTICIPATED SO WE CAN DO THAT PROJECT TO THE BEST OF OUR ABILITY.
BUT HOPEFULLY, THAT GIVES YOU A BETTER IDEA OF WHERE WE STAND FROM A FINANCIAL PERSPECTIVE GOING FORWARD.
[02:25:03]
>> THANK YOU. ANY OTHER QUESTIONS? THANK YOU VERY MUCH. MR. OSMAN.
>> THANK YOU. MAYOR, COUNSEL, WE'LL JUMP BACK TO CIVIC LUBBOCK, AND APOLOGIES GETTING THOSE OUT OF ORDER.
I KNOW WE HAVE MS. KEY HERE, AND I BELIEVE POSSIBLY SOME OF HER BOARD.
CIVIC LUBBOCK, ON THE LEFT AT THE TOP, YOU HAVE THE REVENUE ON THE RIGHT, YOU HAVE EXPENSE.
CURRENT YEAR, 2.034 MILLION, NEW YEAR 2.085.
COME DOWN INTO THE SOURCES OF THOSE DOLLARS, CIVIC CENTER CONCESSIONS, SELECTIVE SEAT OPERATIONS, AND THAT'S A TREMENDOUS PROGRAM.
CERTAIN GRANT SPECIAL PROJECTS, AND THEN OTHER INCOME, AND YOU SEE HOW THAT BRINGS YOUR TOTAL BACK UP.
ON THE EXPENSE SIDE, VERY FLAT ON THEIR COMPENSATIONS DOWN ON BENEFITS, AND SUPPLIES.
MAINTENANCE UP A LITTLE BIT, OTHER CHARGES SLIGHTLY UP, SAME WITH GRANTS, AND SPECIAL EVENTS, CAPITAL OUTLAY, AND REIMBURSEMENTS PRETTY FLAT, AND THEN THE COST OF GOODS SOLD, WHICH, OF COURSE, CONTRIBUTES TO THEIR REVENUE.
BALANCED BUDGET AT 2.084 MILLION.
>> OH, YOU AGREE. MAYOR PROCEED.
>> I JUST WANT TO THANK CIVIC LUBBOCK FOR HELPING US GET THAT 4TH OF JULY EVENT HAPPENING BECAUSE IT WAS A LOT OF WORK IN 4.5 MONTHS, AND Y'ALL REALLY STEPPED UP SO THANK YOU.
>> ANY OTHER QUESTIONS? I'M NOT SAYING EVERYBODY WANTS TO GET OUT OF HERE, BUT MAYBE EVERYBODY WANTS TO GET OUT OF HERE.
WHEN WE HAVE BUT WE DO HAVE A FOLLOW UP, WE HAVE SOMETHING WE WANT TO FOLLOW UP WITH HERE, BUT THANK YOU FOR ALL THIS PRESENTATION.
THANK YOU FOR EVERYBODY BEING HERE TODAY.
>> THANK YOU, MAYOR. I'M GOING TO RUN THROUGH A QUICK LIST TO WRAP US UP, SOME CHANGES THAT HAVE OCCURRED SINCE WE ACTUALLY LEFT THIS ROOM YESTERDAY.
LET ME DO THE SIMPLE PARTS OF IT FIRST.
EACH OF YOUR PLACES, YOU HAVE A SMALL HANDOUT, AND MY APOLOGIES, IT ALSO GOT LEFT OUT YESTERDAY.
THESE ARE PROPOSED FEE CHANGES INSIDE OF CULTURE, AND RECREATION.
I'M NOT GOING TO RUN THROUGH THEM FOR THE MOMENT, BUT PLEASE LOOK AT THOSE, AND GET WITH MYSELF FOR THE STAFF.
WE'LL ANSWER ANY QUESTIONS YOU MAY HAVE.
TO FOLLOW BACK UP, MAYOR GATEWAY IS 40 PERCENT OF FRANCHISE FEE TRANSFERS SO WE'VE GOT THAT.
WE'VE GOT STREET MAINTENANCE, BUT THEN WE HAVE THAT ONGOING FIGHTING THE POTHOLES ALL ACROSS TOWN.
YOU HAVE A ONE PAGE DOCUMENT THERE AT YOUR SEAT THAT TALKS ABOUT THE POTHOLES.
JUST NOTE THAT FOR THE CURRENT YEAR THAT'S YEAR TO DATE, AND THERE'S STILL TWO MONTHS LEFT TO GO IN THE YEAR.
THAT'LL TELL YOU BOTH BY NUMBERS, AND BY AREA WHERE WE'RE AERIAL COVERAGE OF WHERE WE'RE DOING THE POTHOLES.
WE WILL BE BACK TOGETHER AT YOUR REGULAR MEETING NEXT TUESDAY, AUGUST 12, WE CAN BE BACK TOMORROW, IF YOU WOULD LIKE.
BUT AUGUST THE 12TH, BUDGET WILL BE POSTED AS A WORK SESSION ITEM ON EVERY COUNCIL AGENDA FROM HERE UNTIL WE GET TO WHERE THE BUDGET IS FINALLY ADOPTED.
WE HAVE PLENTY OF CHANCE TO KEEP GOING.
NOW, LET ME TELL YOU THE ONE THAT HIT US YESTERDAY.
WE TALKED ABOUT HOW I GET A PRELIMINARY VALUE FOR TAXES.
THEN I GET A CERTIFIED VALUE OF TAXES.
THOSE, OF COURSE, ARE PREPARED BY THE LUBBOCK CENTRAL APPRAISAL DISTRICT.
REMEMBER, CITY HAS NO INPUT TO ANY OF THAT, AND THAT'S BY STATE LAW.
THE SECOND THING THAT HAS TO COME TO US FROM THE APPRAISAL DISTRICT, AND THIS IS TRUE NO MATTER WHAT CITY YOU'RE IN, THE APPRAISAL DISTRICT WILL BE DIFFERENT.
THAT IS A QUITE LENGTHY SERIES OF CALCULATIONS THAT ULTIMATELY RESULTS IN WHAT WE CALL THE NO NEW REVENUE RATE, AND THEN THE VOTER APPROVAL RATE.
WE GOT THAT YESTERDAY, CAME IN ABOUT 5:30, THAT'S TIMELY.
TIM'S TEAM IS DOING WELL ON IT.
BUT WE HAVE SOME ISSUES WITH WHAT'S IN THAT WORKSHEET.
I'M GOING TO NUMBER 1, I HOPE A LOT OF THIS IS GOING TO CHANGE.
I'M GOING TO USE ROUND NUMBERS TO JUST SET WHERE WE'RE STANDING RIGHT NOW.
THE WAY THAT SERIES OF CALCULATIONS WORKS, AND I THINK JOE'S GOT A COPY OF THAT WORKSHEET UP HERE WITH HIM.
I BELIEVE IT'S FIVE OR SIX PAGES LONG.
[02:30:01]
AND DOES A MATHEMATICAL CALCULATION, THAT WHAT IT DOES IS IT RESETS WHAT YOUR PRIOR YEAR LEVY IS.WHAT I MEAN BY THAT, WHEN THE COUNCIL ULTIMATELY ADOPTS A BUDGET, YOU'RE ADOPTING A TAX RATE.
THAT TAX RATE IS APPLIED TO YOUR VALUES, AND THAT RESULTS IN REVENUE.
PART OF IT GOES TO MAINTENANCE, AND OPERATIONS, PART OF IT GOES TO INTEREST, AND SINKING.
BUT WHEN YOU SET THAT LEVY, YOU SET A RATE AGAINST A VALUE THAT RESULTED IN A DOLLAR.
EVERY YEAR, LONG AS WE'VE BEEN DOING PROPERTY TAXES.
WITH THIS PROGRAM THAT GIVES US BACK THE NUMBERS WE USE FOR THE NEW YEAR, THIS YEAR, THAT PROGRAM RESET OR RECALCULATED THIS YEAR'S LEVY, NOT THE NEW YEAR'S LEVY, THIS YEAR'S LEVY.
WHAT THAT I DID FOR YOUR MAINTENANCE, AND OPERATIONS, AND THIS IS WITHOUT THE VALUE OF FROZEN LEVEL, THIS IS JUST THE BASE BEFORE WE GET INTO ANYTHING ELSE.
IT DROPPED LAST YEAR'S LEVY BY TWO MILLION DOLLARS, FROM 83 MILLION TO 81.
THEN IT APPLIES ALL THE MATH, AND KEEPS GOING FORWARDS.
WHAT IT MEANS IF THIS ENDS UP BEING RIGHT, AND I'LL TELL YOU WHAT WE'RE DOING ABOUT IT.
IT WOULD MEAN THAT, IN ESSENCE, THE FIRST TWO MILLION DOLLARS OF NEW REVENUE IS JUST GETTING YOU TO ZERO.
IT'S A FUNDAMENTAL CHANGE TO WHERE WE WERE.
A GROUP OF US WAS UP HERE LAST NIGHT WORKING ON IT.
MR. RADLOF WITH THE APPRAISAL DISTRICT CAME OVER EARLY THIS MORNING, AND A LOT OF THANKS TO HIM.
HE SAT WITH US FOR WHAT NEARLY THREE HOURS.
MR. RADLOF IS GOING TO THE TAX ATTORNEY GROUP, BRANDON.
THEY'RE GOING TO START WORKING ON IT.
LCAD HAS NEVER SEEN IT HAPPEN THIS WAY.
I HAVE NEVER SEEN IT HAPPEN THIS WAY, I'VE NEVER HEARD OF IT THIS WAY.
BUT THE SHORT VERSION, IF YOU ADOPT A NO NEW REVENUE TAX RATE THIS YEAR, YOU'LL HAVE $2 MILLION LESS THAN YOU DID YEAR BEFORE.
YOU GET THE 1.5 OFF A NEW SO YOU'RE 500,000 IN THE HOLE.
A COUPLE OF THINGS TO JUST KEEP IN MIND, AND AGAIN, I HOPE WE'RE ABLE TO GET ALL OF THESE TO CHANGE.
VALUES YEAR OVER YEAR ARE FLAT.
OUT OF $27 BILLION, THE CHANGE IS 27 MILLION.
NOW, WHERE THOSE VALUES ARE HAS MOVED, BUT THE ACTUAL VALUES YEAR OVER YEAR, STATISTICALLY, THEY ARE FLAT, WHICH MEANS ALL OF YOUR NUMBERS SHOULD BE FLAT.
IF VALUES GO DOWN, YOUR RATES GO UP, IF VALUES GO UP, YOUR RATES GO DOWN.
THAT'S HOW IT ZEROS EVERYTHING BACK OUT.
LAST YEAR, WHEN WE SAT HERE AND TALKED ABOUT THIS, YOUR NO NEW REVENUE TAX RATE WAS 46.6749.
AS THIS SERIES OF CALCULATIONS RESET OUR BASE LEVY, YOUR NEW NO NEW REVENUE RATE IS 46.1938, 4.5 CENT LOWER.
THAT NUMBER WAS DERIVED BECAUSE OF THAT CHANGE TO THE LEVY.
YOUR CURRENT RATE THIS YEAR, WHERE WE SIT, IS 47.012 PERCENT.
THE CALCULATED VOTER APPROVAL RATE.
THIS SHOULD BE NO NEW REVENUE DOLLAR TO DOLLAR PLUS 3.5 IS 47.1053.
THAT IS A NINE 100TH OF A PENNY CHANGE.
FROM WHERE YOU STAND TODAY TO VOTER APPROVAL RATE.
SOMETHING'S GOING ON THAT NONE OF US HAVE RUN INTO.
I THINK IT WAS IMPORTANT TO LET YOU KNOW THIS IS NOT THE FINAL ANSWER.
WE'RE GOING TO REALLY HOPE THAT JOE, AND CHERYL GOT CALLED OUT TO GO MEET WITH THEM TODAY, BUT MAYBE WE'LL DO THAT TOMORROW.
JUST KNOW WE'RE WORKING OUR WAY THROUGH IT.
MR. RADLOF HAS BEEN RIGHT ON TOP OF IT TRYING TO HELP IT.
WE DO HAVE A SCHEDULED ACTION.
NOT TO SET, BUT TO PROPOSE A MAXIMUM TAX RATE.
IF WE HAVE BETTER ANSWERS BEFORE THEN, WE'LL WORK ON IT, IF NOT, WE'LL BE BACK IN FRONT OF YOU ON THE 12TH TO DO THAT.
THIS IS I DON'T KNOW HOW TO DESCRIBE IT.
I'VE NEVER SEEN ANYTHING LIKE THIS.
YOUR CALCULATED NUMBERS VERSUS YOUR WORKSHEET NUMBERS ARE USUALLY WITHIN 10THS OF A PERCENT ON THE TOTAL, AND THEY ARE NOT.
>> WELL, THIS IS JUST THE YEAR FOR SEEING THINGS WE HAVEN'T SEEN BEFORE.
>> NO I'M JUST ADDING SALT ON TOP OF INJURY.
>> LET'S JUST HOPE IT'S A GLITCH IN THE SYSTEM SOMEWHERE, BUT WORK ON IT, AND GET US BACK THE INFORMATION WE NEED, BUT I THINK WE ALL KNOW IT'S GOING TO BE A CHALLENGING BUDGET YEAR REGARDLESS,
[02:35:03]
AND WE APPRECIATE ALL YOUR HARD WORK ON IT.THANK YOU AGAIN, EVERYBODY, FOR BEING HERE.
>> MAYOR, DO YOU ALL WANT TO COME BACK TOMORROW OR DO YOU WANT US TO CANCEL? WE CAN COME BACK AND TAKE COMMENTS, INPUT, WE CAN HOLD THAT TILL NEXT TUESDAY.
>> DOES ANYBODY HAVE ANY QUESTIONS THEY WANT TO FOLLOW UP WITH TOMORROW? ARE YOU WILLING TO WAIT TILL NEXT TUESDAY?
>> YEAH. THAT'S THE ONLY THING IF WE DON'T HAVE ANY INFORMATION TOMORROW, I DON'T SEE WHY [OVERLAPPING]
>> HOW ABOUT WE CANCEL TOMORROW? WE LEAVE THURSDAY POSTED.
THEN AS QUICK AS I KNOW, YES OR NO, WE WILL LET YOU ALL KNOW WHETHER YOU NEED TO BE HERE OR NOT ON THURSDAY.
>> IS EVERYBODY OKAY WITH THAT? PLANS TO BE BACK ON THURSDAY THAT. THANK YOU.
>> THEN MY STAFF, WE'RE ALL AVAILABLE FOR JUST ANY INDIVIDUAL QUESTIONS THAT YOU MAY HAVE.
THANK YOU [BACKGROUND] [MUSIC] SEE A TRUE SPIKE.
I DO NOT THINK WE'RE GOING TO SEE IT FOR THE FOLLOWING BUDGET FOR THE FY 27 BUDGET.
DOES THAT MAKE 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.
>> 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 UNTIL THE FOLLOWING YEAR.
>> THAT'S WHY YOU'RE SAYING THAT GIVEN THE SITUATION AT THE MOMENT, WE CAN'T BE LOOKING FOR THIS SITUATION TO IMPROVE MUCH AT ALL NEXT YEAR, IS THAT?
>> EVEN IF WE HAVE 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.
IS IT ACROSS THE STATE AND MY UNDERSTANDING, ACROSS THE UNITED STATES AS WELL.
>> YEAH, WE WENT OVER THE JULY REPORT IN A WORK SESSION AND YOU'RE 100% CORRECT, MAYOR.
THERE ARE ONLY TWO OF THE TOP 10 CITIES IN THE STATE THAT SHOW ANY SIGNIFICANT GROWTH YEAR OVER YEAR, MUCH LESS BUDGET VERSUS ACTUAL.
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 ACTUALLY.
>> THIS DOESN'T REALLY PORTEND TO WEAKNESS IN THE ECONOMY IN LUBBOCK SPECIFICALLY.
IT IS ACROSS THE BOARD WEAKNESS.
>> 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 AND LET ME GO AHEAD.
>> IF YOU'VE GOT SOMETHING MORE AHEAD, I DIDN'T WANT TO GET AHEAD OF YOU, BUT IF YOU'VE GOT A MORE AHEAD.
>> WE'LL GO AHEAD AND DO IT NOW. IT'S A GREAT QUESTION. WE'LL STAY OVER HERE.
[02:40:06]
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.
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.
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 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 SIDE.
>> 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 6 MILLION PLUS DOLLAR INCREASE IN SALES TAX, AND A 2.5 PLUS MILLION DOLLAR INCREASE IN NEW PROPERTY, AGAIN, NEITHER OF THOSE ARE A COMPONENT OF A TAX INCREASE.
YOU'VE STARTED EVERY BUDGET YEAR 8.5 MILLION TO THE GOOD.
THIS YEAR, SALES TAX, 2.5 MILLION BELOW THE PRIOR BUDGET, NEW PROPERTY REVENUE AT 1.5 RATHER THAN THE 2.5 OR BIGGER.
WE STARTED 1 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.
WHAT DID CHANGE, WE STARTED WITH OUR PRELIMINARY ESTIMATES THAT TOLD US NEW PROPERTY WAS A LITTLE OVER 600 MILLION.
THIRTY THREE PERCENT DROP BETWEEN THERE.
NOW, THAT SAME DROP THERE ENDED UP AS A POSITIVE ON A COUPLE OF OUR TIFF ZONES, WHICH IS GREAT FOR THE TIFFS, BUT IT DOESN'T TRANSFER INTO MAINTENANCE AND OPERATION MONEY FOR YOU ALL TO USE TO RUN THE CITY.
>> CAN I 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? DO WE TRACK THAT DURING THE YEAR?
[02:45:01]
IS THERE SOME WAY WE CANNOT BE CAUGHT OFF GUARD AS EASILY AS MAYBE WE WERE THIS YEAR?>> WELL, THAT'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, 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 APPRAISAL DISTRICT INFORMATION THAT ALLOWS US TO REALLY HAVE A HANDLE ON THAT IS?
>> 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.
>> THEN WE GET THE CERTIFIES THE FINAL VALUES. TO COME OUT.
WE ACTUALLY GOT THEM A LITTLE EARLIER THIS YEAR, BUT IT WAS A WEEK AGO THURSDAY. WHEN THOSE CAME OUT.
>> 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 AT BURBE, BUT THERE IT IS, IN WRITING, WE'RE BUDGETING SALES TAX AT A 103 MILLION, WHICH IS A 2.5% DECREASE TO THE CURRENT YEAR'S BUDGET.
AND SINCE WE'RE CENTERING UP RIGHT AT 100 MILLION, IT'S EASY TO SAY THAT'S 2.3 OVER THE ACTUALS. MAYOR.
>> IT'S A DECREASE FROM WHAT WE BUDGETED LAST YEAR, BUT WHAT WAS THE INCREASE FROM LAST YEAR ACTUAL INCREASE?
>> 2.3, AND THEN WE'RE BUDGETING AROUND TWO FOR NEXT YEAR.
>> OH, NO. YOU'RE TALKING ABOUT THE BUDGET FROM A YEAR BEFORE?
>> WE BUDGETED IN A 4% INCREASE FROM LAST YEAR?
>> SIX. WHAT ARE WE THINKING WE'RE GOING TO COME OUT PERCENTAGE WISE?
>> ABOUT A TENTH OF A PERCENT OVER THE PRIOR ACTUAL.
>> THEN THIS YEAR, IT'S WE'RE DOING 2% IS WHAT'S PROPOSED, CORRECT?
>> 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.
THAT'S WHY WE PUT THE FREEZES AND THE CUTS AND THOSE THINGS INTO PLACE. ANY MORE ON THIS ONE? [NOISE] STAYING AT THOSE TOP LINE BILLS, THE ONLY ALL ENCOMPASSING RATE CHANGE THAT WE HAVE PROPOSED IN THIS BUDGET IS THAT NEXT $1 ON SOLID WASTE.
AGAIN, 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 STORM WATER.
>> LAST YEAR, WE INCREASED AT $1.
>> WE WERE INCREASING IT ANOTHER DOLLAR.
>> 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.
JUST ON EACH PAGE, THE CHART WILL BE THE SAME ON EACH PAGE.
THE HIGHLIGHTED PART IS WHAT WE'RE GOING TO WALK THROUGH.
[02:50:02]
THIS IS YOUR BIG PICTURE ON THE GENERAL FUND.YOU SEE ON THE LEFT COLUMN WITH NUMBERS, THE FY 25, THAT'S THIS YEAR.
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 IN 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.
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 AGAIN, AND IT'S BASED AGAIN 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 ATMOS, AND REALLY THE BIG ONE WAS SUDDENLINK, WHICH IS REALLY OPTIMUM.
THEIR FRANCHISE NAME IS SUDDENLINK.
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 PARTS.
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.
AGAIN, 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 [INAUDIBLE] FINES AND FORFEITURES, THAT'S MAINLY THE INCREASED ACTIVITY OVER AT MUNICIPAL COURT, AND THEN HERE'S YOUR BIG ONE, 2.9 INCREASE IN INTEREST EARNINGS, AGAIN, 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, AND 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 IN WOOD ROW.
THAT'S THE MAJORITY OF THAT ONE.
THE SMALLER VARIANCES CAME OUT OF SOLID WASTE, WATER WASTE, WATER 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
[02:55:04]
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 99.5% OF THAT IS STEP INCREASE.
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.
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.
BUT THE OVERALL INCREASE IS 668.
WE'VE BEEN ABLE TO PULL OUT OTHERS TO WORK ON OFFSETTING 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.
>> 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 AWAYS THAT THE CITY BARGAINED TO DO MANY, MANY YEARS AGO BEFORE ANY OF US WERE UP HERE.
SO 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?
>> THAT HOPEFULLY THE CITIZENS WILL APPRECIATE.
>> I THINK, 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'RE LOOKING MUCH BETTER.
WORKERS' COMPENSATION COMES UNDER COMPENSATION.
WHERE DO WE PUT THAT IN OUR BUDGET?
>> IT GOES INTO THE BENEFITS LINE ITEM.
>> IT'S IN THE BENEFITS LINE. [OVERLAPPING]
IT'S IN INSURANCE, AND YOU'LL SEE THE SAVINGS FOR THAT HERE IN JUST 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, AND 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 GOT TO KEY LIBRARY.
YOU'RE NOW SEEING THE SAVINGS FROM NO LONGER PAYING THAT RENT.
CITY HAS LONG MAINTAINED A SINGLE ITEM IN 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.
[03:00:05]
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.
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 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 THAT'S 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.
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, AND THEN YOU'VE GOT REDUCTION IN TRAFFIC, PUBLIC SAFETY STREETS, THE GENERAL CIP TRANSFER, YOU'VE GOT CIP DETAILS A LITTLE FURTHER IN TODAY.
SOME OF THAT'S BECAUSE REVENUES ARE DOWN.
THAT ONE'S NOT QUITE AS GOOD NEWS.
INTERNAL SERVICE FUND TRANSFER IS UP ABOUT 1,000,004.
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.
SIDEBAR SINCE I'VE CALLED FLEET OUT.
WE'LL GO AHEAD AND JUST COVER IT.
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.
I CAN'T PEEL IT OVER INTO OPERATIONS, AND 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.
WE'VE ABOUT WORKED THAT ENTIRELY OUT, AND 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.
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.
THEY'RE ACOS, ANIMAL CONTROL OFFICERS.
THE TRUE CHANGE IN THE GENERAL FUND, IF WE ACCEPT THE ADDITION OF THESE ACOS, IS NEGATIVE 11.
YOU'LL SEE ALSO, THOUGH ON THE RIGHT COLUMN NINE FTES FOR THE WEST TEXAS VETERANS CEMETERY.
[03:05:04]
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 LANDBOARD.
THAT INCLUDES BOTH COMPENSATION AND BENEFITS.
THAT MAKES SENSE? IT'S A TRUE NEGATIVE 11 THAT IS BEING PAID FOR BY THE CITY.
>> YOU'RE SAYING NEGATIVE 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.
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, SO IT'S 14.5 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.
YOUR 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.
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 OR 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.
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 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 GRATER, 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%.
I THINK WE ARE SEEING THE BENEFIT OUT OF OUR NEW CONSULTANT THAT'S HELPING US NEGOTIATE THAT.
[03:10:03]
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.
YOU SEE THE 3.5% CHANGE ON THERE.
COUNSEL, 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.
I HAVE IT. THERE IS NOT ENOUGH DIFFERENCE IN IT TO RECOMMEND ANY OF OUR PEOPLE TAKE IT.
THE QUESTION IS, WHY? 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 $11.22 PER PAY PERIOD.
THE PROPOSED RATE GOES UP BY $0.39, 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 HEALTH CARE 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.
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 KIND OF TAKE A LITTLE SIDEBAR, TALK ABOUT.
SO THE BUDGET, AND 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.
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.
WE'RE GOING TO CONTINUE OUR EDUCATION ASSISTANCE PROGRAM.
THAT IS REALLY TAKEN OFF LIKE A ROCKET.
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 RPA 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 RPA DOLLARS THAT HAS BEEN DEPLOYED TO THE DIRECT BENEFIT OF OUR EMPLOYEES AND OUR WORKFORCE. IT'S WORTH WELL.
POLICE AND FIRE. COMPENSATION ADJUSTMENTS, THESE ARE SLIGHTLY ROUNDED NUMBERS, BUT IT'S 2.1 TO FIRE 2.3 TO POLICE.
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 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 JUST 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.
WE'RE GOING TO PICK BACK UP BETWEEN OCTOBER AND NOVEMBER, REALLY TO SEE WHERE WE STAND IN TERMS OF THE FISCAL IMPACT.
[03:15:04]
WHILE THAT ONE IS SUSPENDED, IT MEANS WHAT IT SAYS, I GUESS, IS A SIMPLE WAY.THERE ARE 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? 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. ALL RIGHT. 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 KIND OF CALCULATED THAT.
I HAVE THAT IS ABOUT 1.38 MILLION, IS THAT ABOUT WHAT YOU HAVE?
>> THANK YOU. ANY OTHER QUESTIONS?
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.
MOST OF THEM HAVE 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 PROGRAMS FUN, AND IT'S WORKING WELL.
EVEN IF WE DON'T END UP HIRING THEM, NUMBER ONE, THEY GET PAID FOR A PART TIME JOB THROUGH THE SUMMER.
NUMBER TWO, 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'S SELFISH, BUT WE'LL LEAVE IT OUT THERE.
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 ALL MAY OCCASIONALLY GET AN E-MAIL, AND IF YOU'LL READ THE SIGNATURE BLOCK, THEY'LL TELL YOU WHAT THEIR SCHEDULE WAS. QUESTIONS ON THAT ONE.
WE 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.
AS YOU LOOK AT THE CHANGE FROM BUDGET, THAT'S WHAT IT'S COMPARED TO.
THAT FIRST KIND OF LIGHT BLUE LINE IN THE MIDDLE, THE ALL IN GENERAL FUND WAS 314,000,360; CURRENT YEAR.
WE'RE NOT HITTING IT BECAUSE OF THE $5,000,000 SHORTFALL IN SALES TAX, BUT THAT'S REVENUE BUDGET.
THAT'S THE BUDGET WE'RE DOING TODAY.
BOTTOM LINE ON IT, 316.6000007 TENTHS OF A PERCENT, 2.3 MILLION.
THE FULL VALUE OF THAT REQUESTED TAX INCREASE IS ALREADY FACTORED IN HERE.
IF 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.
THIS IS WHERE YOU HAVE INFORMATION TECHNOLOGY AND ALL THOSE 97.8 201,
[03:20:01]
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. 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 26 BUDGET, THE NEW BUDGET IS 953898, BASICALLY 954.
SO 27.4 MILLION DOLLAR ALL DROP.
WE'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.
287, 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.
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.
BUT REMEMBER, JUST THAT MOWING CONTRACT WAS 921.
THERE'S STILL BEEN REDUCTIONS IN THERE.
DEVELOPMENT SERVICES STATISTICALLY IS FLAT, ONE TENTH TO 1%.
PUBLIC WORKS AND SOLID WASTE DOWN ABOUT 2.6 MILLION OR 6.5%.
PUBLIC SAFETY IS YOUR ONLY INCREASE.
AND THEN YOUR OTHER VARIOUS EXPENSES THAT COME IN, TRANSFERS, ALL THAT FUND STUFF, DECREASED BY 3.6 OR 1.5 MILLION.
TOTAL TWO TOTAL, AND THIS INCLUDES THE REQUESTED COMPENSATION NUMBERS.
THE GENERAL FUND WENT FROM 314000000-316 MILLION FOR A NET CHANGE OF 2.3.
REMEMBER THE REQUESTED TAX INCREASE ALONE IS 3.5.
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.
DIFFERENCES ARE 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.
GO ALL THE WAY OVER TO WHERE IT SAYS, FY 25 YEAR END FORECASTED AVAILABLE RESERVES.
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 AND THEN JUMP ACROSS IT AND
[03:25:04]
GO ONE TO THE RIGHT PROJECTED CHANGE TO AVAILABLE RESERVES.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 THEIR VERSION OF ARPA OR TO WHAT THEY CALL THE BIL, THE BUILD MONEY.
WATER WASTEWATER, CIVIC CENTER STORM-WATER 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, EXCUSE ME, 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 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.
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.
SO WHEN YOU'RE ASKED, HOW MUCH CASH DOES THE CITY HAVE, THERE'S YOUR ANSWER.
THAT'S REALLY CASH ABOVE OUR REQUIRED RESERVES.
I MEAN, 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 AVAILABLE. I'M SORRY.
THAT'S NOT AVAILABLE, THAT'S LOCKED.
>> CONTRIBUTING GREATLY TO YOUR INTEREST EARNINGS, BUT YES, IN A LOCKBOX.
THE COLUMN TO THE RIGHT IS THE AVAILABLE RESERVES.
THAT TOTALS 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.
IT SAYS, USE OF AVAILABLE RESERVES IN FISCAL YEAR 2025 FOR OUR BUDGET WAS 18 MILLION, RIGHT?
>> THIS YEAR, WE'RE PROPOSING 12 MILLION, IS THAT 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 5 MILLION SHORT TO START WITH.
>> 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.
[03:30:01]
WHAT DO PEOPLE WRITE A CHECK TO THE CITY FOR.RATE'S 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.
THIS IS 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.
THE CALI ABILENE IS AND WE TALK ABOUT OUR COMPETITIVE SET.
WHAT'S GOING TO MATTER IS THE REVENUE THAT'S GENERATED OFF OF THIS AND WHAT THAT RESULTS IN THE BILL.
THIS IS MAINTENANCE AND OPERATIONS REVENUE PER CAPITA.
YOU TAKE THAT TOTAL TAX LEVY FOR MAINTENANCE AND OPERATIONS DIVIDED BY YOUR PEOPLE.
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.
YOU SEE US AT 384, ABILENE IS AT 387, MIDLANDS AT 345, RELATIVELY THE SAME, 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.
YES. HALF CENT TO THE LOCAL SALES TAX IS 2%.
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.
WE WON'T GO BACK AND TRY TO FIGURE OUT WHEN THAT WAS OR WHO DID THAT, BUT THAT'S.
>> IT REALLY MUCH THE IMMUTABLE DECISION, WE LIVE WITH IT.
>> COMBINE THOSE TWO, NO 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. WE'RE ABOUT YOU TAKE THE DIFFERENCE BETWEEN SAY, ABILENE AT 771, LUBBOCK AT 734.
IT'S ABOUT 9.5 MILLION DOLLAR.
IF YOU EXTENDED THAT BACK TO LUBBOCK.
I'M SORRY. THAT'S COMPARED TO ABILENE.
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 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.
I'LL EXPLAIN THE DIFFERENCES WHEN WE GET DONE WITH IT, BUT HERE IT IS.
THIS BUDGET WILL RAISE MORE TOTAL PROPERTY TAX THAN LAST YEAR BY 4.572395 OR 3.75%.
OF THAT AMOUNT, 01,957,555 IS TAX REVENUE FROM NEW PROPERTY ADDED TO THE ROLL THIS YEAR.
I TOLD YOU THAT NUMBER WAS 1.5 MILLION DOLLAR.
THE DIFFERENCE IS HOW IT ROLLS INTO THE I&S FUND ALSO.
[03:35:01]
IF YOU CARRY DOWN, AND WE'RE WAITING FOR THE THIRD SET OF CALCULATIONS FROM CAD, 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.
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, SO 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.
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, 2 MILLION OF THAT CHANGE IS EXISTING, 1.5 IS NEW OVER ON THE DEBT SIDE.
THAT'S A NEGATIVE, AND THEREFORE, EXISTING WENT DOWN 586 TO 439.
THE BOTTOM, YOU SEE WHERE THAT OVER 65 DECREASE CAME IN.
CLEAR AS MUD. LET'S DO IT THIS WAY.
AN AVERAGE THE MYTHICAL SINGLE FAMILY RESIDENTIAL HOME SEES A $31.45 CENT INCREASE.
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, SO OVER HERE.
LAST YEAR, THE SINGLE FAMILY HOME PAID $1045.22.
WITH THE PROPOSED TAX INCREASE, THEY WILL PAY $1,076.66.
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 $1.45 AND WE'LL GET THAT ROW OF S FILLED BACK IN.
ANY QUESTIONS ON THAT ONE? EVERYBODY READY FOR DEBT AND INVESTMENTS THEN.
YOU MIGHT WANT TO TAKE A BREAK FOR A MINUTE.
LET'S TAKE A 10 MINUTE BREAK, OKAY? [BACKGROUND] WE'RE BACK FROM OUR RECESS.
WE'LL CONTINUE RIGHT ALONG GOING INTO DEBT AND INVESTMENTS.
>> 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.
[03:40:01]
>> 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 DOLLAR.
BUT REMEMBER, COUNSEL, WE'VE MADE ONE MAJOR MID YEAR CHANGE THAT WASN'T ORIGINALLY BUDGETED, AND THAT WAS THE PURCHASE OF THE GOEKE LIBRARY.
THAT WAS BETTER THAN $3,000,000, AND IT'S INCLUDED IN THAT 17.9 AND THEN EARLIER, I HAD REFERENCED THAT TAX NOTE SHIFT OF ABOUT 2.2 IN THERE.
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.
>> STILL 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, SO THIS IS TOTAL.
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.
IT'S GOING TO INCREASE AS WE CONTINUE TO DO THE DRAW-DOWNS 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.
THIS IS THAT SAME NUMBER, BUT CONVERTED TO PER CAPITA.
THEN YOU SEE THAT OUT OF THIS COMPETITIVE SET, WE'RE NEXT TO THE LOWEST.
THAT BLUE BAR, THAT'S JUST A HAIR UNDER TWO THOUSAND.
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.
YOU CAN SEE THE 33.3 MILLION DOLLAR 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.
FIVE MILLION DOLLAR 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 LUBBOCK WATER 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 LAW DEVELOPMENT BOARD DEAL WE DID A NUMBER OF YEARS AGO.
CEMETERY, YOU SEE THE INCREASE THERE.
THAT'S FOR YOUR IRRIGATION AND ALL OF THAT.
LP&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 FOUR MILLION.
YOU TAKE THE 32.9 AT THE TOP, THE -25.9 AT THE BOTTOM, SEVEN MILLION DOLLAR 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.
YOUR SECOND LARGEST IS WATER AND WASTEWATER 464, GENERAL FUND 403, AND THEN YOU SEE HOW THEY ALL TRICKLE DOWN FROM THAT.
[03:45:02]
THAT FIRST PIE CHART THOUGH, JUST UNDER 22% OF YOUR DEBT IS ACTUALLY TAX SUPPORTED DEBT, AND JUST 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.
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 CO-SIGN THEIR DEBT.
IF WE CO-SIGN IT THROUGH THE GENERAL FUND, IT'S GOING TO BE GOVERNMENTAL EVEN IF IT'S NEVER PAID BY TAXES.
A LOT OF YOU-ALL HAVE SEEN THAT TEXAS STATE CONTROLLERS 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.
LP&L'S DEBT STANDS ON ITS OWN, WATER AND 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 AND THE ONE ON THE RIGHT IS THE BAR CHART TURNED INTO A PIE CHART. ANY QUESTIONS ON THAT?
>> DO 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.
IT'LL SHOW YOU BY SERIES WHAT THEY ARE.
>> WELL, AN OLD FUND CATEGORY WOULD BE JUST FINE.
LET ME JUST SAY THIS MUCH IS OLD FUNDS.
>> DID YOU GET THAT? [BACKGROUND] GOOD.
THANK YOU. INVESTMENT EARNINGS.
LIKE WE SAID, THEY'RE DOING PRETTY GOOD.
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, COUNSEL 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.
>> IT'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 SCAN A CAT AND 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.
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 [INAUDIBLE] 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].
THEIR TAX BASE IS TOTALLY DIFFERENT.
>> 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.
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.
[03:50:05]
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 WANT TO BRAG ON THE DEPARTMENTS AND THE DIRECTORS.
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, 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.
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.
SLIGHT CHANGE IN THE CITY ATTORNEY'S BUDGET, JUST A HAIR OVER $100,000.
THEY'VE HAD SOME 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 MATT WILL BUY 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 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 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, SO THAT'S YOUR CHANGE THERE.
>>THAT 2% FOR THE WHOLE COUNCIL WOULD HAVE AVERAGED ABOUT, I THINK 18 BUCKS SO FOR THE YEAR OR SO.
>> THAT'D BE 18 OVER THE COURSE OF A YEAR, MAYOR, SO DIVIDE BY 12. [LAUGHTER]
COMPENSATION IS THE STAFF SALARIES.
THAT'S INTO THE PROPOSED INCREASE.
SCHEDULED CHARGES AND BENEFITS ARE LARGELY GOING TO BE THE SAME IN ALL OF THESE.
WE HAVE SHIFTED WHERE WE'VE GOT THE LUBBOCK CORNER ONE STUFF MOVING AROUND.
SHORT VERSION IS I'M UP $10,000, SIX TENTHS OF A PERCENT. QUESTIONS?
>> AS WE'RE GOING THROUGH EACH OF THESE AND 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? [BACKGROUND] IT DOES NOT. [OVERLAPPING]
>> YOU'RE HOLDING THAT AS A SEPARATE.
>> THIS WOULD BE THE COMPENSATION WITHOUT THE [INAUDIBLE].
[03:55:02]
SLIGHT COMPENSATION INCREASE.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, THEN THERE'S A BUDGET CARRYOVER THAT GOT ROLLED OFF.
BUT FY 26 HAS AN ELECTION IN IT.
PRIOR YEAR HAD SOME ADDITIONAL COMPUTER EQUIPMENT.
THEY DON'T NEED TO REPURCHASE IT, SO THAT HAS COME BACK OUT.
STILL ALL IN, COURTNEY'S BRINGING FORWARD NEARLY A $370,000 DECREASE.
SOME SLIGHT FEE CHANGES HERE, NOTARY FEE FROM SIX DOLLARS TO 10.
THEN FOR HEALTH VITAL STATISTICS, THE SAME SIX TO 10.
THEN WE FOUND OUT WE HAVE BEEN PRO RATING WRECKING YARD AND JUNK YARD PERMIT FEES, AND WE'RE NOT SUPPOSED TO, AIN'T THAT CORRECT?
>> WELL, WE JUST HAD NEVER ISSUED ONE BEFORE.
TO MAKE THIS CLEANER, WE DID AN ANNUAL PERMIT FEE.
>> WE PRO RATED THEM TO ZERO AND NOW WE'RE DOING ALL OF IT.
>> 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, SO YOU HAVE ONE NOW.
FACILITIES DEPARTMENT. [NOISE] COMPENSATION CHANGES OVERTIME.
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 FOR 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.
SAME INCREASE THAT YOU'RE GOING TO SEE THROUGHOUT ON THE TMRS AND 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 SUPPORT IT.
PROFESSIONAL SERVICE TRAINING AND TRAVEL BUDGETS, THOSE ARE DOWN ABOUT $2,000.
THE SCHEDULED CHARGES THROUGH IT AND 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, THERE'S JUST SOME STAFFING CHANGES THAT BROUGHT DOWN COMPENSATION A LITTLE BIT, WHICH ALSO BRINGS DOWN THAT PORTION OF THE BENEFITS COST.
[04:00:01]
THEY'VE BEEN ABLE TO RESET THEIR SUPPLY BUDGET.PROFESSIONAL SERVICES, MAINLY TRAVEL AND TRAINING, DOWN.
INCREASE IN SCHEDULED CHARGES, MOSTLY IT, ALL IN 307.9 OR 308 TO 308.6.
>> JOE, WE KEEP SEEING THE SCHEDULED CHARGES FOR IT COSTS GOING UP, AND AGAIN, REMIND US, IS THAT BECAUSE OF NEW EQUIPMENT? NEW WHAT?
[OVERLAPPING] 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 MULESHOE TO LAKE ALAN 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, 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 AND WHAT CAN WE DO ABOUT IT?
>> WELL, WE HAVE SELF-RETENTION.
>> YOU'RE SELF-INSURED ON WORKERS' COMPENSATION.
>> YOU MAINLY HAVE SELF-RETENTION ON THE OTHERS.
YOU BACK HEALTH WITH WHAT'S CALLED A STOP LOSS PLAN.
IT'S INSURANCE FOR INSURANCE, BUT YOU PAY UP TO YOUR STOP LOSS.
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.
OUR LCAD PAYMENT IS GOING UP A LITTLE BIT.
THEN WHAT WE CALL PCORI, WHICH IS PATIENT SOMETHING RESEARCH INSTITUTE, IT'S A FEE WE HAVE TO PAY TO THE FEDERAL GOVERNMENT BECAUSE WE HAVE A HEALTH PLAN, AND IT GOES UP EVERY YEAR.
THIS IS THE 75,000 THAT I HAD.
THEN YOU SEE AN INCREASE IN SCHEDULED CHARGES FOR STREET LIGHTING.
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.
WE NO LONGER NEED THE TEMPORARY HELP WE'VE BEEN USING IN 311.
STANDARD COMMENTS ON BENEFITS.
REMEMBER, LAST YEAR, WE BUDGETED FOR THE NEW WEBSITE AND ALL THAT SYSTEM; WE DON'T NEED TO RE-BUDGET FOR IT.
THEN THEY ACTUALLY GOT THEIR IT CHARGES A BIT DOWN, SAME THING WITH LIABILITY INSURANCE, 01,085,000 TO 1,032,000 MILLION THAN.
SLIGHT REDUCTION IN 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 $37,000 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.
[04:05:05]
WE DID TAKE 100,000 OUT OF THE DEMOLITION COSTS.THAT'S SOMETHING WE'RE GOING TO WATCH OVER THE COURSE OF THE YEAR.
THEN THEIR SCHEDULED CHARGES ARE DOWN ACTUALLY QUITE A BIT IN THIS CASE.
ALL IN 3.3 MILLION TO 3.1 MILLION, SO JUST A HAIR OVER $200,000 REDUCTION.
>> 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 ASK FOR SOME DOLLARS, OR THEY'LL STOP.
>> WE ARE 43, WE'RE GOING TO BE, I LOOK AT ACTUAL FOR '23-'24 AT 607, SO YOU WOULD ANTICIPATE THAT THEY'RE GOING TO NEED THAT 100,000.
>> 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 THAT'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 SOME 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 IN ENVIRONMENTAL HEALTH AND 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.
SOME $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.
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 VENDOR ANYWHERE IN THE STATE.
ALL CAME OUT OF A DISPUTE IN THE [INAUDIBLE] AREA.
PLANNING DEPARTMENT. REDUCING ONE FTE.
WE DID RE-CLASS 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.
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.
[04:10:02]
IT'S NOT THE SAME CONTRACT THAT'S AT THIS BUILDING, BUT IT HAS THE SAME ESCALATORS IN IT.COUNCIL, 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, SO 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.
ALL IN, IT'S JUST UNDER $2,000 CHANGE YEAR OVER YEAR.
JACKIE AND HER TEAM GET A LOT DONE AND PROVIDE A LOT FOR $1.4 MILLION.
COMPENSATION IS UP SLIGHTLY, IT'S 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.
SO 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, SO THAT'S WHERE YOU'RE SEEING THAT CHANGE.
THAT ALSO TRIGGERS THE BENEFIT CHANGE.
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.
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.
COUNCIL, I CAME TO YOU A YEAR AGO AND ASKED FOR AN ASSISTANT DIRECTOR.
FAIR WARNING, NEXT YEAR OR 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 INCASE 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 YOU ALL HAVE A CHANCE TO WORK WITH HIM, YOU'LL BE VERY IMPRESSED.
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 TRUE 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 & LIGHT, CITY OF LUBBOCK UTILITIES.
THEIR CHARGE BACK TO US TO BAIL OUR UTILITIES IS GOING UP,
[04:15:03]
SO 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 A PRETTY GOOD REDUCTION HERE.
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.
THEN OUR SPECIAL WASTE, THE HANDLING OF THAT FOR US CONTINUES TO BE MORE AND MORE EXPENSIVE.
STREETS. SOME STAFFING CHANGES HAVE PULLED COMPENSATION DOWN JUST SLIGHTLY.
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 BUDGET.
>> STREET MAINTENANCE. 2025 STREET MAINTENANCE, THIS IS THE CURRENT YEAR.
ALSO 14.5 MILLION, 14 MILLION GENERAL FUND, 500 GATEWAY.
THIS IS THE FIRST YEAR SINCE COVID STARTED THAT SOME OF OUR UNIT COST PRICES ARE GOING DOWN.
ASPHALT HAS GONE DOWN A LITTLE 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 TOP OF THE LIST PROBLEMS THAT WOULD HAVE BEEN ROLLED OUT INTO THE NEXT YEAR AND 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.
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.
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 AND ON A MAP BASIS, THAT'S WHAT THAT LOOKS LIKE AND I'LL ATTEMPT TO.
THERE YOU GO. THAT'S ALSO IN YOUR PACKET?
>> YEAH. JERRY, IF I COULD ASK, WHAT 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, SEVEN TO TEN YEAR LIFE.
WHAT WE DO, WHAT THEY DO AND YOU SAW IT IN THAT PAVEMENT CONDITION RATING.
THEY FOCUS ON AN AREA WHERE THAT PAVEMENT CONDITION RATING HAS FALLEN.
THERE ARE SOME AREAS THAT A STREET FOR WHATEVER REASON, LESS TRAFFIC, MAYBE JUST A DIFFERENT LOAD OF ASPHALT, IT SEEMS TO LAST LONGER.
OTHER AREAS THAT DETERIORATES SO WE FOCUS ON CONDITION MORE THAN WE FOCUS ON AGE.
[04:20:04]
>> ALL RIGHT. TRAFFIC BUDGET, REDUCTION OF ONE FTE, ASSOCIATED REDUCTION ON BENEFITS.
MAINTENANCE, 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.
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.
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.
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.
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.
SO 1,014,000 DOWN TO 1,008,000, NOT BIG, BUT THEY BROUGHT IT IN.
BACK TO THE EARLY SLIDES, COMPENSATION IS UP, NOT THE RAISE.
YOU SEE THAT DOWN AT THE BOTTOM.
[BACKGROUND] THAT IS UP BECAUSE OF THE STEPS AND 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.
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 AND CAPITAL OUTLAY, THAT IS DUE TO THE TAX NOTE PAYMENTS BECAUSE THAT'S HOW YOU'RE BUYING THE TRUCKS.
REMEMBER, AT THE SEVENTH YEAR ONE ROLLS OFF, ONE ROLLS ON AND IT'LL STABILIZE.
73.5 MILLION TO 76.4, INCLUDING THE TWO PLUS 2.1 MILLION IN THAT COMPENSATION ADJUSTMENT.
EXCUSE ME. SOME PROPOSED FEE CHANGES INSIDE OF FIRE.
INSPECTION OF A FLAMMABLE LIQUID UNDERGROUND TANK, 150 TO $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.
THEY'RE PART OF THE GAME ROOM INSPECTIONS AND THEIR RE-INSPECTIONS, $100 TO $150.
THEN YOU'VE GOT RE-INSPECTION AFTER A FAILED INSPECTION.
THIS IS CHANGING IT FROM ONE PENNY PER SQUARE FOOT TO TWO PENNIES PER SQUARE FOOT.
[04:25:03]
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 RE-INSPECTION 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?
>> THANK YOU, MAYOR. WOULD YOU GO BACK TO 83?
>> THE DIFFERENCE IN 735 AND 764.
THAT DOES NOT INCLUDE THE PROPOSED COMPENSATION INCREASE?
>> YES. THAT'S DIFFERENT FROM WHAT YOU'VE CHANGED BEFORE?
>> YES. BECAUSE TIME YOU SPREAD THAT OTHER ONE IT'S SUCH LITTLE NUMBERS.
>>THEIR HARD COST CHANGE WOULD BE THE 76.4 -2.1.
>> OVERALL, THEIR HARD COSTS WENT UP BY ABOUT 800,000.
>> BUT YOUR COMPENSATION NUMBER AT THE TOP DOESN'T CHANGE, BUT YOU'RE PUTTING THIS IN THIS ADJUSTMENT AT THE BOTTOM.
>> OKAY. MOVING ON, WE'RE STILL IN THE FIRE MARSHAL'S OFFICE.
NURSING HOME INSPECTIONS, FOUR PER BED, 275 MINIMUM TO $8 PER BED, $275 MINIMUM.
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.
RE-INSPECTION FEE FOR AN OPERATIONAL PERMIT.
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'S ZEROS.
EVERYBODY READY FOR MUNICIPAL COURT.
THIS IS ONE OF THE REDUCED FTES.
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 2 MILLION FLAT TO BASICALLY 1.97, ABOUT $30. OKAY. POLICE?
>> ON THE MAINTENANCE FOR DUE TO VEHICLE.
WELL, IT'S A MAINTENANCE FOR VEHICLE MAINTENANCE.
A LITTLE REDUNDANT, BUT ARE THESE FOR THE FIRE MARSHAL VEHICLES OR?
>> FOR MUNICIPAL COURT? IT'S THE FOUR MARSHAL'S VEHICLES.
>> I'M SORRY, NOT THE FIRE MARSHAL, SORRY, GUYS.
[INAUDIBLE] I WAS STILL THINKING FIRE OVER THERE FOR THE CITY MARSHAL.
>> 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?
[04:30:04]
>> WELL, THERE'S NOT FOUR CITY MARSHALS FOR ONE.
THAT'S A DIFFICULTY IN HIRING.
IT'S NOT NECESSARILY DE POSITION.
THEY'RE USING PART TIME HELP AND THEY'RE USING CONTRACTED SECURITY HELP, WHICH 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.
>> OKAY. READY FOR POLICE? AS FAR AS COMPENSATION GOES, THIS WILL BE IDENTICAL TO FIRE.
THE STEP INCREASES ARE IN THE COMPENSATION LINE, 556 TO 563.
AGAIN, OUT OF THAT TOTAL 900 AND SOMETHING THOUSAND THAT ARE STEP INCREASES.
THE MAJORITY OF THAT'S OVER AT THE PD.
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.
REMEMBER, COUNSEL, WE ARE REPLACING ALL OF THE RUGGED TABLETS.
THAT WAS APPROVED BY COUNSEL EARLIER.
LIABILITY INSURANCE AND ELECTRIC IS UP AND THEN THE 2.3 MILLION, 2.28 MILLION FOR COMP ADJUSTMENT.
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.
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 WERE GRANT FUNDED RATHER THAN CARRYING THEM OVER HERE.
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 MILLION.
>> MR. COLLINS, AND SO IN PUBLIC HEALTH, WE SEE APPROXIMATELY $100,000, $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.
>> OKAY. 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.
NO ATTEMPTS TO DO SO, JUST SHOWING YOU WHERE THOSE PIECES STAND.
>> THE UTILITY PROJECT AT THE END AT 3.6?
>> THAT'S THE WEST LUBBOCK WATER PANT. OKAY.
>> 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,
[04:35:02]
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?
>> YEAH 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'S 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 FUND, IT'S ALL NEW CASH.
WE HAVE ONE REQUESTED CAPITAL PROGRAM THAT IS $300,000, AND THAT IS FOR AMENITY REPLACEMENTS FOR PARKS.
WHEN WE TALK ABOUT AMENITIES, THOSE ARE TRASH CANS, PARK BENCHES, PICNIC TABLES, JUST THE LITTLE THINGS THAT MAKE THE PARKS WORK.
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 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. C PERSONAL PROTECTIVE EQUIPMENT THAT'S IN THE FIRE DEPARTMENT.
I'LL PROBABLY SPEND TIME ON THIS NEXT ONE.
RF FOAM TRANSITION, AIRPORT RESCUE AND FIREFIGHTING.
WE'VE ALL HEARD AND TALKED ABOUT PFAS AND PFOS.
THERE IS NOW, NUMBER ONE, WE DO NOT USE PFAS IN THE FOAM IN THE CITY AND HAVE NOT USED IT FOR 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.
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 FA OR THE EPA.
THAT ONE, WE DID HAVE A SLIGHT AMOUNT OF PRIOR YEAR CASH THAT WE PULLED OVER INTO IT.
THEN WE'VE TALKED A COUPLE OF TIMES ALREADY ABOUT THE POLICE WRECKED VEHICLE REPLACEMENT FUNDS.
THIS IS WHERE THESE SOURCES ARE GOING TO BE IMPORTANT.
WE'VE GOT UPLAND, 82ND TO 9,812.5.
REMEMBER, THERE'S OTHER MONIES THERE ON TOP OF THIS. THEY'RE NOT OUR MONIES.
WHEN IT SAYS ON THAT LINE ITEM, THAT'S A PROGRAM TO BE A C.O TO GET THAT STREET AND TAKE ADVANTAGE OF THE MATCHING MONEY.
COME DOWN. YOU'VE GOT A WHOLE SEQUENCE THAT SAY 22 B ON THE REST OF THE PAGE.
THOSE ARE YOUR 2022 BOND PROJECTS.
WE'RE GOING TO HAVE AN EXPENDITURE LAND 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.
WE'RE GETTING NEAR TO THE END OF THAT TURNING THE DIRT RESIDENTIAL ROADS INTO PAVED RESIDENTIAL ROADS.
[04:40:01]
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.
FIRST PHASE ON UPLAND 98 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.
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.
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.
I REALLY THINK THAT 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 WAS 3,400,000, BUT ARI, DO YOU HAVE THAT NUMBER OFF TOP OF YOUR HEAD?
AND ON THE NEIGHBORHOOD TRAFFIC MANAGEMENT PROGRAM? WHAT IS THAT? I DON'T RECALL THAT.
>> OH, I HAVEN'T GOT THERE YET. GOT THERE YET.
>> OH, SORRY. WELL, I'M THERE.
>> WE'LL ANSWER THAT WHEN WE GET.
>> THANKS, MAYOR. THE CONTINGENCY ON THE 24 BOND.
HOW DID WE FUND THAT CONTINGENCY?
>> IT WAS JUST BORROWED MONEY. OKAY. THAT'S ALL I HAVE. THANK YOU.
SO 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.
NOW, PAGE 96. THIS IS TRAFFIC.
WE'RE A AND THESE ARE ALL NEW MONEY.
WE'RE ASKING FOR 50,000 TO CONTINUE PUTTING THE BACKUP POWER SYSTEMS IN ALL OF OUR TRAFFIC LIGHTS.
[04:45:01]
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 COUNSEL'S 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 FOR 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.
IT MEETS THE ENGINEERING CRITERIA.
IF IT'S NOT USED, IT'S COMING BACK, YOU'LL REALLOCATE IT, BUT TO NEED IT AND NOT HAVE IT CAN GET PRETTY TOUGH.
TRAFFIC OPERATIONS FACILITY RENOVATIONS FOR $300,000.
THE PEOPLE THAT RUN THAT DEPARTMENT AS WE WERE GOING THROUGH THIS.
I DON'T KNOW THAT I'D EVER SPEND $2,000,000 ON THAT BUILDING. IT'S BAD.
WE'VE GOT A BUILDING THAT WAS PURCHASED WHEN WE PURCHASED MUNICIPAL HILL.
SOME OF YOU ALL HAVE BEEN OUT TO MY ONE OH ONE DAY AND BEEN IN IT.
THAT IS WHERE ALL OF THE PROGRAMMING OF EVERY SIGNAL IS DONE, ALL THE LIGHTS ARE MADE, ALL THE INVENTORY, NOT THE LIGHTS, THE SIGNS ARE MADE, ALL THE INVENTORY, ALL THAT.
THE TRUCKS START AND STOP THERE EVERY DAY.
THEY HAVE WORKED WITH US TO SAY, LET'S PAINT AND PATCH.
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 THE THEY CALL THEM TRAFFIC CALMING.
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, YOU KNOW.
>> THANK YOU, MAYOR. KEPT ME FROM SAYING IT.
ACCESSIBLE PEDESTRIAN SIGNALS.
THIS IS COMPLYING WITH THE NEWEST VERSIONS OF THE AMERICANS WITH DISABILITIES ACT.
IT'S A ROLLING PROCESS TO MAKE THOSE CHANGES.
TRAFFIC BUDGETS AT 1,060,000 THURSDAY 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.
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'VE 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 AND BOTH THE BONDS.
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 COUNSEL.
I CAN'T SLIP IT INTO STREET MAINTENANCE OR ANYTHING LIKE THAT.
COUNSEL HAS TO, TO THE EXTENT YOU CAN, DEPENDS ON HOW MUCH YOU HAVE LEFT.
COUNSEL 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.
[04:50:01]
>> NOW, THE 2 MILLION YOU PUT IN THERE.
>> OKAY. THERE'S A DIFFERENCE BETWEEN THE TWO BECAUSE IT'S NOT BONDED MONEY.
>> WELL, I WAS GOING TO MAKE YOU GO BACK AT THE END, BUT SINCE WE'RE ALREADY ON THE 2 MILLION CONTINGENCY FOR THE 2022 BOND.
THERE'S WE DID 10 MILLION FOR THE 2024 BOND?
>> OKAY. WOULD THAT MONEY STILL SIT IN IMS? LIKE, WHAT'S THE OPPORTUNITY COST GOING TO BE IF WE.
>> IT WILL ACTUALLY BE IT'S HELD IN AN INTEREST BEARING ACCOUNT.
THEY ALL EARN THE SAME NO MATTER WHERE THEY ARE.
>> OKAY. GOOD DEAL. WHAT DOES THAT COMPARE TO LIKE, WE'RE MOVING THE HALF CENT FROM INS.
HOW MUCH MONEY IS THAT I WAS TRYING TO LOOK.
>> HALF CENT. ABOUT 1.2 MILLION?
>> ABOUT 1.2. OKAY. THAT'S ALL I GOT.
>> ALL RIGHT. ANY OTHER QUESTIONS?MY PRO TEM.
>> NOT A QUESTION. IT'S MORE OF A COMMENT.
I JUST WANT TO THANK ALL THE STAFF FOR REALLY STEPPING UP.
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.
>> ALL RIGHT. 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.
ALL RIGHT. I BELIEVE WITH THAT. WE ARE DONE HERE TODAY.
* This transcript was compiled from uncorrected Closed Captioning.