[00:00:04] WE'VE GOT A FULL HOUSE TODAY, GOOD TO SEE EVERYBODY. WE ARE NOW CONVENING FOR A WORK SESSION, AND WE'VE GOT SEVERAL ITEMS THAT WE'RE GOING TO BE PRESENTING HERE TODAY AND DISCUSSING REGARDING OUR BUDGET FOR THE UPCOMING YEAR. I'M GLAD TO SEE EVERYBODY HERE, REPRESENTING ALL THE DEPARTMENTS AFFECTED BY THIS BUDGET. IT'S PROBABLY THE MOST IMPORTANT THING WE DO, BUT IT IS PROBABLY THE MOST TIME-CONSUMING THING THAT YOU AND OUR CITY MANAGEMENT ARE INVOLVED IN, AND THE HOURS SPENT TO BRING TO US WHAT WE WILL HAVE TODAY IS IMMENSE, AND WE ARE GLAD TO HAVE ALL YOUR INPUT IN IT. I'M SURE EVERYBODY UP HERE HAS LOOKED ALL THE WAY THROUGH EVERY PAGE OF THE TWO BOOKS THEY GOT LAST NIGHT, LATE, AND WE'RE ALL READY TO GO HERE, BUT I WILL CALL THIS MEETING TO ORDER, AND AS WE GET STARTED, I WANT TO LET EVERYBODY KNOW THAT OUR, I GUESS, COUNCILOR-ELECT, THAT'S THE PROPER TITLE, RIGHT? COUNCILOR-ELECT TIM GREEN IS SITTING UP HERE SO THAT HE CAN GET UP TO SPEED BEFORE HE'S SWORN IN NEXT TUESDAY IS WHEN HE WILL BE SWORN IN, BUT IN THE MEANTIME, HE NEEDS TO GET UP TO SPEED WITH WHAT WE'RE DOING AND TALKING ABOUT, SO HE WILL BE UP HERE WITH US, AND HE CAN, OF COURSE, ENGAGE AND ASK QUESTIONS JUST AS ANY COUNCIL PERSON CAN AS WELL, AND SO WE'RE GLAD TO HAVE HIM UP HERE, AND WE'VE ALL BEEN IN THAT PLACE THAT HE'S GOING TO BE AT, STARING AT THESE NUMBERS AND GOING, OH MY GOSH, IT'S A LOT, AND SO BEFORE WE GET STARTED, LET ME JUST SAY THAT I'VE ASKED OUR CITY MANAGER AS HE GOES THROUGH, HE MAKES THIS PRESENTATION, AND THE FIRST ITEM THAT HE PRESENTS TO US TO GO SLOWLY THROUGH IT AND EXPLAIN EACH OF THE, NOT EACH OF THE ITEMS, BUT MANY OF THE ITEMS THAT ARE NOT SELF-EXPLANATORY AND THAT ARE THE KIND OF THINGS THAT ALL OF US HAD QUESTIONS ABOUT THE FIRST TIME WE LOOKED AT A BUDGET AND WHAT IS THIS, WHAT DOES IT MEAN, WHAT DOES IT GO FOR, AND SO HE'S GOING TO GO THROUGH THAT, NOT JUST FOR COUNCILMAN GREEN'S BENEFIT, BUT FOR ALL OF US WHO'VE FORGOTTEN AS WELL HOW A LOT OF THIS WORKS, BECAUSE IT'S NOT LIKE YOUR HOUSEHOLD BUDGET, IT'S VERY DIFFERENT, SO WE'LL TRY TO TAKE TIME GOING THROUGH THE FIRST SECTION, AND ALL OF US CAN ASK QUESTIONS, FEEL NO EMBARRASSMENT ABOUT TRYING TO REFRESH YOUR MEMORY ABOUT THINGS, THAT'S WHAT THIS IS, IT'S A WORK SESSION, AND THEN AFTER WE'VE DONE IT WITH THE FIRST SESSION, HOPEFULLY WE CAN GO QUICKER THROUGH ALL THE REST OF THEM, BECAUSE THEY'RE ALL SET UP THE SAME WAY, SO WITH THAT, WE WILL GET STARTED, [1. Presentation and discussion of the Proposed FY 2026-27 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, and Capital Improvement Program, and provide direction to the City Manager to make changes to said Budget.] AND I WILL TURN THIS MEETING OVER TO OUR CITY MANAGER, BECAUSE IT'S, THEY TELL YOU, ARE YOU READY TO ROLL? YES, SIR. ALL RIGHT. ALL RIGHT. THANK YOU, MAYOR AND COUNCIL. A COUPLE OF KIND OF REMINDERS AS WE GET STARTED, FOR THOSE THAT HAVE HAD THE ABSOLUTE THRILL OF DOING THIS FOR SEVERAL YEARS, WE'RE DOING IT BACKWARDS THIS YEAR, SO YOU MAY RECALL LAST YEAR WE GOT RUNNING DOWN THE ROAD AS WE NORMALLY DO, HAD SOME UNEXPECTED INFORMATION, WENT BACK AND FORTH, AND ACTUALLY HAD TO COME BACK, SO WE ARE GOING TO START TODAY, AND WE ARE GOING TO DO THE ENTERPRISE FUNDS, THAT IS NOT MATCHING UP ON MY THING. WE ARE GOING TO START TODAY WITH THE ENTERPRISE FUNDS, AND JUST A QUICK REMINDER, AN ENTERPRISE FUND IS BASICALLY A UNIT OR A SERVICE THAT WE PROVIDE, IS ACCOUNTING, IS MORE TYPICAL AT LEAST BUSINESS ACCOUNTING, PROVIDES A PRODUCT FOR A SERVICE, FOR A RATE, FOR A CHARGE, AND THOSE HAVE TO GO TOGETHER LIKE THAT. THEY'RE REALLY THE MORE TRADITIONAL ONES, SO WE'LL DO ENTERPRISE TODAY, WE'LL DO INTERNAL SERVICES, THESE ARE FUNDS THAT EXIST WITHIN THE OVERALL SCOPE OF THE CITY, THAT ARE THE OPERATIONS WE HAVE, WHOSE JOB IS TO PROVIDE A SERVICE TO SOME OTHER PART OF THE OPERATION. SO ONE OF THE BEST EXAMPLES OF THAT IS INFORMATION TECHNOLOGY, TELECOMMUNICATIONS, THAT'S WHERE YOU'RE GOING TO FIND YOUR RISK FUNDS, YOUR HEALTH FUNDS, THOSE THINGS THAT THEIR JOB IS TO DO SOMETHING ON BEHALF OF THE OTHER DEPARTMENTS OF THE CITY. THEY ARE ALSO ACCOUNTED FOR IN A MORE TRADITIONAL AND TYPICAL FASHION, SO A LOT OF WHAT YOU'LL SEE TODAY, THE FORMATS ARE GOING TO LOOK VERY MUCH THE SAME. WE'LL DO SPECIAL REVENUE FUNDS. SPECIAL REVENUE FUNDS ARE GOING TO BE LIKE, THINK OF YOUR TIF, YOUR TAX INCREMENT FINANCING ZONES, PUBLIC IMPROVEMENT DISTRICTS, THINGS LIKE THAT. AND THEN FINALLY, WE'LL HAVE COMPONENT UNITS TODAY. SO COMPONENT UNITS ARE [00:05:01] TECHNICALLY AN OUTSIDE OPERATION, BUT IT IS EITHER WHOLLY OR PARTIALLY FUNDED BY THE CITY, OR THOSE BOARDS THAT RUN THOSE ARE WHOLLY OR PARTIALLY SUBJECT TO THE CITY COUNCIL. THIS IS WHERE YOU'LL FIND, EXCUSE ME, THIS IS WHERE YOU'LL FIND LUBBOCK ECONOMIC DEVELOPMENT ALLIANCE. THIS IS WHERE YOU WILL FIND CIVIC LUBBOCK, INC., AND ALL OF THOSE. THOSE WILL ALSO LOOK A LITTLE MORE TRADITIONAL THAN WHAT WE'LL SEE ON FRIDAY. SO SCHEDULING-WISE, IF WE MAKE IT THROUGH PART 1 TODAY, COUNCIL, I WOULD OFFER TO GIVE YOU BACK YOUR DAY TOMORROW. THAT'LL ALLOW US TO FINISH CAPTURING AND WINDING UP AND PRINTING EVERYTHING WE NEED FOR FRIDAY. FRIDAY IS THE BIG ONE. THAT'S GOING TO BE GENERAL FUND. THAT'S WHERE WE GET TO TALK ABOUT THE T WORD, THE TAXES, AND ALL OF THOSE THINGS. THAT'S ALSO THE DAY WHERE YOU WILL SEE THE OUTPUTS OF YOUR COUNCIL PRIORITY SESSIONS AND HOW THOSE WILL LINE UP WITH THAT PARTICULAR BUDGET. A COUPLE OF Y'ALL NOTICED YOUR BOOK IS MUCH THINNER THAN YOU'RE USED TO SEEING. IT'S BECAUSE THE GENERAL FUND IS COMING LAST RATHER THAN FIRST. I WILL SAY THIS. MR. JIMENEZ, MS. BROCK, WE'RE ABLE TO HAVE THE LUBBOCK CENTRAL APPRAISAL DISTRICT GROUP OVER MONDAY AFTERNOON. WE DON'T HAVE ANY MORE SURPRISES NOW. WE'VE GOT EVERYTHING LOCKED UP. WE'RE JUST GETTING IT ALL INCORPORATED WHERE WE CAN PASS THAT OUT. YOU DO HAVE A SET OF HANDOUTS THAT WILL BE DOWN HERE MOMENTARILY. THEY WILL MATCH WHAT'S ON THE SCREEN. WHAT'S ON THE SCREEN IS BASICALLY A MORE CONCISE VERSION OF WHAT'S IN THE BOOKS THAT YOU HAVE. SO IF WE WANT TO GO DETAIL, WE GO INTO THE BINDERS. THE REST OF IT WILL BE ON THIS. YOU HAVE ALL THESE DOCUMENTS IN YOUR EMAILS ELECTRONICALLY AS WELL THAT YOU CAN DOWNLOAD AND WORK WITH. TODAY IS DAY ONE OF A NEARLY 30-DAY PROCESS. COUNCIL, THIS IS FOR ME TO HAND TO YOU THAT DRAFT BUDGET THAT, IN MY OPINION, BEST MEETS YOUR PRIORITIES AND THE NEEDS OF THE OPERATION. I WILL TELL YOU THEY WILL ALL BE BALANCED BUDGETS. THEY MEET ALL OF THE STATE LAW REQUIREMENTS, ALL OF OUR CHARTER REQUIREMENTS. THIS IS KIND OF THE HANDOFF. SO THIS IS MY BUDGET BEING HANDED TO YOU TO EXPLAIN, TO ANSWER QUESTIONS, AND THEN IT BECOMES YOUR BUDGET. JUST A QUICK REMINDER HOW THIS WILL WORK OVER THE NEXT SEVERAL WEEKS. YOU HAVE A COUNCIL MEETING NEXT TUESDAY. TUESDAY THE 11TH IS A REGULAR COUNCIL MEETING. YOU HAVE ONE BUDGET ITEM THAT YOU WILL HAVE TO TAKE ACTION UPON, AND THAT ITEM IS TO PROPOSE A MAXIMUM TAX RATE, WHICH THAT'S WHAT WE'LL DO FRIDAY. WE'LL COME UP WITH THOSE NUMBERS AND SHOW THEM TO YOU. A QUICK REMINDER FOR EVERYBODY LISTENING, THAT IS NOT THIS COUNCIL ADOPTING A BUDGET OR A TAX RATE. THAT IS A STATUTORILY REQUIRED ITEM THAT YOU HAVE TO SAY, WE PROPOSE X. THAT THEN BECOMES THE NUMBER THAT YOU CANNOT GO OVER. AS WE WORK OUR WAY THROUGH THE REST OF THE PROCESS, YOU CAN ABSOLUTELY DO LESS, BUT YOU CANNOT DO MORE. SO WE WILL DO THAT ON TUESDAY. ALSO ON TUESDAY, YOU'LL HAVE A WORK SESSION POSTING IF WE WANT TO CONTINUE BUDGET DISCUSSIONS. YOU'LL ALSO HAVE THAT ON THE 25TH. THERE ARE NO FORMAL ACTIONS ON THE 25TH. IT IS ANOTHER CHANCE FOR EVERYBODY TO WORK TOGETHER AS WE MOVE FORWARD. YOUR FIRST BUDGET ACTION WILL BE ON THE CALLED MEETING OF TUESDAY, SEPTEMBER THE 1ST, AND THAT MEETING IS SET IN THE EVENING. WE HAD A DISCUSSION LAST YEAR ABOUT COULD WE DO THE HEARINGS AFTER WORK. SO IT IS SCHEDULED TO BE AFTER WORK. I BELIEVE IT'S 6 P.M. YOU'LL DO THE HEARINGS ON THE TAX RATE AND THE BUDGET. YOU'LL HAVE PROPOSED MEET AND CONFER AGREEMENTS. YOU'LL GET MORE DETAIL ON THOSE FRIDAY AND THEN CONTINUING ACROSS. AND THEN YOU WILL TAKE THE FIRST VOTE ON A BUDGET ON A TAX RATE. IT IS STILL NOT FINAL. SO WE'LL COME BACK A WEEK LATER FOR YOUR REGULAR MEETING OF SEPTEMBER THE 8TH, AND THAT IS THE MEETING AT WHICH YOU GO THROUGH THAT. I VOTE FOR THE BUDGET. I VOTE FOR THE TAX RATE. I VOTE AGAIN FOR THE BUDGET. THAT'S WHEN YOU WILL DO THAT. IF EVERYTHING STAYS ON THAT SCHEDULE, YOU WILL HAVE ADOPTED YOUR FISCAL YEAR 27 BUDGET BY SEPTEMBER THE 8TH. SO ANY QUESTIONS ON THE SCHEDULE? OKAY. IF NOT, LET'S GO AHEAD AND WE'LL JUMP IN. DO ME A FAVOR AND TAKE YOUR BINDERS, YOUR THREE-RING BINDERS. I HAD SOME QUESTIONS ASKED THIS MORNING THAT I THINK REALLY KIND OF SPEAK TO WHAT THE MAYOR WAS MENTIONING. GET BACK TO THAT PAGE. IF YOU WOULD JUMP OVER TO PAGE 10. IT SAYS EF10 AT THE VERY BOTTOM OF IT. I'M GOING TO KIND OF GO OVER THE LAYOUT FOR HOW THESE FUNDS WORK. SO THIS PAGE 10 IS THE COMBINATION OF EVERYTHING WASTEWATER AND WASTEWATER. REMEMBER, YOU OPERATE THOSE AS A COMBINED FUND. THAT FUND HAS ITS OWN CREDIT [00:10:01] RATING. IT IS NO LONGER RELIANT UPON THE GENERAL FUND TO BE THE COSIGNER. IT HAS ALL OF THAT. SO THE QUESTION THAT WAS ASKED IS, SHOW ME YOUR FUNDING SOURCES, AND I'LL TALK ABOUT THOSE, YOUR EXPENSES, AND YOU'LL SEE THE CATEGORIES, AND THEN FUND-LEVEL EXPENSES, AND WHY IS THERE A DIFFERENCE BETWEEN THOSE? SO AT THE TOP OF THAT, WE HAVE OUR FUNDING SOURCES. YOU CAN SEE AT THE VERY TOP, YOU HAVE LICENSE AND PERMIT. YOU CAN SEE A LIST AS YOU GO DOWN. WE TAKE YOU BACK TO THE PRIOR THREE-YEAR ACTUALS. WE SHOW WHERE YOUR CURRENT BUDGET STANDS. AND IN THE FAR RIGHT COLUMN, THE ONE RIGHT IN FRONT OF WHERE THE PERCENTAGES ARE, THAT'S YOUR PROPOSED BUDGET. SO JUST TO TAKE AN EXAMPLE, IF YOU'LL LOOK ABOUT IN THE MIDDLE WHERE IT SAYS WATER METERED SALES, YOU'LL SEE THAT LAST YEAR THAT BUDGET NUMBER WAS $98.3 MILLION, AND YOUR PROPOSED BUDGET IS $102.6 MILLION. SO OBVIOUSLY THAT'S THE LARGEST REVENUE SOURCE. IF YOU SKIP TWO AND GO DOWN TO WASTEWATER METERED SERVICE, CURRENT YEAR IS $52.8 MILLION, THAT'S A BUDGET NUMBER, AND THEN THE NEW NUMBER IS $54.9 MILLION. THAT'S THE BUDGET WE'RE WORKING ON NOW. METERED SALES, AND YOU WILL SEE THIS IN SOLID WASTE, YOU WILL SEE THIS IN STORMWATER, METERED SALES MEANS BUILD. IT MEANS BUILD. OKAY. QUESTIONS ON THE REVENUES. AND YOU'LL SEE THESE BROKEN OUT IN SMALLER PIECES AS WE GO. GOT THE CONCEPT? OKAY. LET'S GO TO DEPARTMENT-LEVEL EXPENSE, MORE IN THE MIDDLE OF THE PAGE. THIS IS THE ROLL-UP OF ALL OF THE SUBSETS INSIDE OF WATER AND WASTEWATER INTO WHAT ARE STANDARD BUDGET CATEGORIES. SO COMPENSATION AT THE TOP LINE, IF WE WANT TO JUST WORK OUR WAY TO THE RIGHT, YOU SEE THE CURRENT YEAR'S BUDGET FOR COMPENSATION IS $14.6 MILLION. AND YOU SEE THE BUDGET NUMBER IS BASICALLY $13.8 MILLION. AND THEN ON THE FAR RIGHT, YOU'VE GOT THE PERCENT CHANGE. BENEFITS IS RIGHT UNDERNEATH IT. SUPPLIES SHOULD PROBABLY PAUSE FOR JUST A MOMENT. THERE IS A RELATIONSHIP BETWEEN COMPENSATION AND BENEFITS, BUT IT IS NOT ONE-TO-ONE. SO CERTAIN PIECES OF OUR COMPENSATION, AND THIS IS MAINLY GOING TO BE THE RETIREMENT. SO IN THIS GROUP, TEXAS MUNICIPAL RETIREMENT SYSTEM, THAT IS TIED DIRECTLY TO COMPENSATION, SO IT WILL MOVE. OTHER PARTS OF YOUR BENEFITS, LIKE SOME OF THE HEALTH CARE AND THINGS LIKE THAT, THOSE DON'T CHANGE BASED ON WAGE. SO THEY WOULD NOT MOVE IF WE WERE TO GET A COLA APPROVED, FOR EXAMPLE. BUT THE PORTION OF BENEFITS THAT IS RELATED TO THE RETIREMENT, TO THE PENSION, IT WILL MOVE AS COMPENSATION MOVES. NEXT ONE DOWN IS SUPPLIES. WE HAVE MAINTENANCE, PROFESSIONAL SERVICE AND TRAINING. OTHER, YOU'LL SEE DETAIL ON BOTH OTHER AND THE NEXT ONE, SCHEDULED CHARGES. AND THEN YOU SEE CAPITAL OUTLAY. AND THAT IS WHAT COULD PROBABLY BETTER BE CALLED MINOR CAPITAL. THOSE ARE THE SMALL ONGOING CARE AND FEEDING ITEMS IN THE VARIOUS DEPARTMENT-LEVEL BUDGETS. BECAUSE YOU HAVE A WHOLE SEPARATE CAPITAL BUDGET LATER. OKAY, FUND-LEVEL EXPENSE. AND YOU'LL SEE... I'LL STOP YOU RIGHT THERE JUST FOR A MOMENT. YES, SIR. SCHEDULED CHARGES. EXPLAIN WHAT SCHEDULED CHARGES ARE. GENERALLY, THAT IS HOW YOUR INTERNAL SERVICE FUNDS ARE FUNDED. SO THAT IS WHERE YOU WILL FIND THE CHARGE TO A DEPARTMENT FOR THE INFORMATION TECHNOLOGY, FOR THEIR COMPUTERS, PRINTERS, TELECOMMUNICATIONS. IF A DEPARTMENT OR DIVISION USES RADIOS, THOSE TYPES OF THINGS ARE ROLLED UP INTO SCHEDULED CHARGES. YOU'LL ALSO FIND UTILITIES. JUST LIKE ANYBODY ELSE, WE HAVE UTILITY BILLS THAT WE PAY. SO ALL THOSE WILL FIT INTO THERE. OKAY, FUND-LEVEL EXPENSES. THE DEPARTMENT-LEVEL EXPENSES ARE ASSIGNED FOR A PARTICULAR DISCRETE BLOCK OF WORK THAT CARRIES A DISCRETE SET OF EXPENSES WITH IT. THE FUND-LEVEL EXPENSES ARE THOSE THINGS THAT WE HAVE TO PAY THAT ARE THE TOTALITY OF WHAT WE DO. AND MAYBE THIS WILL MAKE MORE SENSE. AND MAYBE THIS WILL MAKE MORE SENSE. YOU LOOK AT WATER DEBT SERVICE. SO OBVIOUSLY, YOUR INDIVIDUAL DEPARTMENT. TAKE YOUR PIPELINE REPAIR GROUP. THEY DON'T PAY THE DEBT SERVICE. THE WATER-WASTEWATER FUND AS A WHOLE PAYS IT. SO WE'VE GOT IT BROKEN OUT. [00:15:03] YOU'LL SEE WATER DEBT SERVICE. YOU'LL ALSO SEE WASTEWATER DEBT SERVICE. YOU'LL ALSO SEE VEHICLE AND EQUIPMENT. THIS IS TRUE FULL-COST ACCOUNTING OF WHAT THOSE DEBT SERVICE REQUIREMENTS ARE FOR THE TOTALITY OF WATER AND WASTEWATER. ANOTHER ONE THAT BEGS A QUESTION. WHAT IS THE INDIRECT COST ALLOCATION? SO INDIRECT COST ALLOCATION IN THE NORMAL, NOT GOVERNMENT WORLD, IS WHAT'S KNOWN AS OVERHEAD. SO THINK OF THINGS LIKE A SMALL PIECE OF THE CITY COUNCIL'S BUDGET, CITY MANAGER, CITY ATTORNEY, HUMAN RESOURCES, ACCOUNTING, MS. BROCK'S FINANCIAL PLANNING AND ANALYSIS GROUP. WE PROVIDE SERVICES ALL ACROSS ALL OF THE FUNDS, AND SO THERE IS A SMALL PORTION OF THE COST ASSIGNED TO THEM. YOU ASK, WHERE DID THAT COME FROM? WE USE THE FEDERAL GOVERNMENT'S ASSIGNED INDIRECT COST PROGRAMMING, AND WE DO THAT BECAUSE OF OUR GRANT-FUNDED OPPORTUNITIES, BUT WE DON'T CHANGE THAT. SO WE'VE GOT THAT, AND IT'S SOMETHING, THE FORMAT OF WHICH IS PUT TOGETHER BY THE FEDERAL GOVERNMENT. PAYMENT IN LIEU OF PROPERTY TAX, RIGHT BELOW INDIRECT COST ALLOCATION. PAYMENT IN LIEU OF PROPERTY TAX IS PILOT. SO THESE ARE THE CHARGES TO THE ENTERPRISE FUNDS FOR THE USE OF THE PUBLIC PROPERTY. THIS IS GENERALLY GOING TO BE RIGHT-OF-WAY TO PERFORM THEIR SERVICE FOR WHICH THEY CHARGE. THE CITY OF LUBBOCK HAS LONG OPERATED ON THE PRINCIPLE ALL UTILITIES, PUBLIC OR PRIVATE, ARE TREATED THE SAME. NOW, A PRIVATE UTILITY, THINK OF THE NATURAL GAS UTILITY. THAT'S A FOR-PROFIT BUSINESS. THEY'LL ACTUALLY PAY A PROPERTY TAX. WE HAVE A CALCULATED PAYMENT IN LIEU OF THAT PROPERTY TAX THAT IS AT THE SAME RATE. FRANCHISE FEE. FRANCHISE FEE IS A CHARGE FOR THE SAME THING. YOU'RE USING A PUBLIC RIGHT-OF-WAY, BUT IT IS GENERALLY GOING TO BE BASED ON A PERCENTAGE OF REVENUE. IN LUBBOCK, ALL OF YOUR ENTERPRISE UTILITIES ARE CHARGED AT THE SAME RATE AS ANY OF THE PRIVATE UTILITIES THAT OPERATE IN LUBBOCK. SO, AGAIN, IT'S ACTUALLY A PRINCIPLE THAT'S ENSHRINED IN THE TEXAS CONSTITUTION. YOU'RE USING PUBLIC PROPERTY. THE GENERAL FUND IS THE OWNER OF THE PUBLIC PROPERTY. AND YOU'RE DOING THAT TO PROVIDE A SERVICE FOR A FEE. SO THINK OF THESE AS RENT PAYMENTS. OKAY? RENT AND LICENSING. MOVING DOWN, TRANSFER TO PAVED STREETS. THAT'S RELATED REALLY TO WHAT WE DO OVER THE COURSE OF THE YEAR RELATED TO WATER AND WASTEWATER THAT WOULD DAMAGE A PUBLIC STREET, AND THUS IT HAS TO BE REPAIRED. PAVED STREETS IS A GENERAL FUND OPERATION, AND IT'S BEEN DAMAGED BY AN ENTERPRISE, SO THE ENTERPRISE COVERS THE COST TO FIX IT. NORMALLY, THIS IS FIXING A DITCH CUT OR WHERE WE'VE HAD TO EXCAVATE TO GET TO A LEAK, SOMETHING ALONG THOSE LINES. YOU SEE THE TRANSFER TO WATER CAPITAL, FOLLOWED BY THE WASTEWATER CAPITAL. YOU'LL SEE THE CAPITAL DETAIL AS WE MOVE LATER IN HERE. THAT'S WHERE THESE DOLLARS COME FROM THAT GO TO THEIR MAJOR CAPITAL PROJECTS. COMING DOWN TO TRANSFER TO LPNL COLLECTIONS, YOU'LL SEE IN THE SUMMARIES WHAT WE REFER TO AS THE BILLING OFFICE. LUBBOCK POWER AND LIGHT OPERATES CITY OF LUBBOCK UTILITIES. THAT IS THEIR DEPARTMENT THAT HANDLES THE METERING AND THE BILLING FOR OUR ENTERPRISE FUNDS. SO WE OWE THEM DOLLARS FOR PERFORMING THAT LEVEL OF WORK, AND THAT'S WHAT THAT IS. WHAT'S SOME OTHER ONES THAT ARE INTERESTING ON HERE? YOU'VE GOT THE AMI DEBT THAT IS ABOUT ACTUALLY TO PAY DOWN AND PAY OFF. THAT WAS THE PROGRAM THAT WE INSTITUTED, I BELIEVE, IN 2018 TO GO TO THE AUTOMATIC METER READING SYSTEM RATHER THAN HAVING PEOPLE UP AND DOWN THE ALLEYS PULLING EVERY LID OFF. TERMINAL PAY AND TERMINAL PAY BENEFIT. FOR THOSE OF Y'ALL THAT HAVE BEEN THROUGH THIS BEFORE, THAT IS NOT A NEW CHARGE. WE MADE AN EFFORT A NUMBER. TEN YEARS AGO, TERMINAL PAY AND TERMINAL PAY BENEFIT WAS NOT A BUDGETED EXPENSE. IT WAS IN A TOTALLY DIFFERENT DEAL. IT WAS ACCOUNTED FOR, BUT YOU COULDN'T SEE IT BY DEPARTMENT. SO TERMINAL PAY IS WHEN AN EMPLOYEE WHO HAS VESTED THEIR BENEFITS LEAVES. AND THEN WE HAVE POLICIES OVER WHAT PORTION OF THAT VESTED BENEFIT, THINK VACATION LEAVE AND SICK LEAVE, WE WILL PAY THEM. THERE'S KIND OF A PRO RATA STRUCTURE ON THAT. WE STARTED A NUMBER OF YEARS AGO TRYING TO DO THAT AT THE INDIVIDUAL DEPARTMENT LEVEL. IT WAS A MATHEMATICAL CALCULATION. AND WHAT WE HAVE FOUND NOW THAT WE'VE DONE THAT FOR ABOUT FIVE YEARS IS WE'RE KIND OF PRETTY GOOD AT IT IN TOTAL. WE'RE HORRIBLE AT IT AT THE INDIVIDUAL DEPARTMENT LEVEL. ALL IT TAKES IS ONE TENURED EMPLOYEE THAT HAD 35 YEARS [00:20:01] RETIRING IN A SMALL GROUP THAT WASN'T ANTICIPATED VERSUS TWO WITH SHORTER TENURES IN A LARGER GROUP. WE HAVE NOT CHANGED IN ANY SIGNIFICANT MANNER THE COST OF TERMINAL PAY OR TERMINAL PAY BENEFIT. WE'VE EXTRACTED THEM OUT OF THE DEPARTMENT BUDGETS AND PUT THEM IN THE APPROPRIATE FUND BUDGET. SO IF YOU GO BACK TO LAST YEAR'S BOOK, YOU'LL SEE IT IN THE INDIVIDUALS. THIS YEAR YOU'LL SEE IT UP HERE AT THAT FUND LEVEL. MOVING DOWN, YOU'VE GOT THE TOTAL OF FUND LEVEL EXPENSE. TO CARRY ON WITH THE ONE WE'RE USING AS AN EXAMPLE, THE CURRENT YEAR BUDGET FOR THIS GROUP IS 108.1 AND THE NEW YEAR'S BUDGET IS 104.3, BOTH OF THOSE NUMBERS IN MILLION. THE NEXT ONE IS ADDITIONAL COL ADJUSTMENT, THAT IS COST OF LIVING IN THIS CASE. SO THE BUDGET DOES INCLUDE A PROPOSED 3% COST OF LIVING. IT IS NOT ALREADY ADDED TO THOSE DEPARTMENT EXPENSES FOR TWO REASONS. NUMBER ONE, IT WOULD SKEW YOUR YEAR-OVER-YEAR COMPARISON. NUMBER TWO, IT HASN'T BEEN APPROVED YET. SO WE WANT TO KEEP THAT SET OUT TO KEEP YOUR COMPARISONS CORRECT AND TO LET THE COUNCIL KNOW EXACTLY WHAT IT IS OR WHAT THE COST IS THAT IS BEING PROPOSED. IF THAT IS ULTIMATELY APPROVED, WHEN YOU SEE THE FINAL BUDGET, THAT LINE GOES AWAY AND IT WILL GO UP MAINLY INTO COMPENSATION AND IN A SMALLER AMOUNT INTO BENEFITS. THAT'S WHERE YOU'LL SEE IT END UP WHEN WE'RE DONE. SO, QUESTIONS ON THAT? MR. COLLINS. MR. COLLINS. THANK YOU. SO, COULD YOU GO BACK UP A COUPLE OF THINGS? WOULD YOU REPEAT WHAT YOU HAD SAID ABOUT SCHEDULED CHARGES, THE EXPLANATION OF SCHEDULED CHARGES? THE SCHEDULED CHARGES ARE LARGELY WHAT FUNDS INTERNAL SERVICES. CITY ATTORNEY, CITY PAYROLL, HR. WE'RE IN THE INDIRECT STUFF. YOUR SCHEDULED CHARGES, I'M SORRY, I MISSPOKE. SCHEDULED CHARGES ARE GOING TO BE FOR YOUR IT PRODUCTS AND SERVICES AND SOFTWARE, TELECOMMUNICATIONS, RADIO, UTILITIES, THINGS LIKE THAT. OKAY. OKAY. SO IF WE GO BACK TO COMPENSATION, WE SAW 24, 25 TO 26, A SIGNIFICANT BUMP IN COMPENSATION AND THEN ACTUALLY COMING DOWN. SO CAN WE GET A QUICK EXPLANATION OF HOW COMPENSATION'S DROPPED? YOU'RE GOING TO SEE SOME PERSONNEL DECREASES, SOME FULL-TIME EQUIVALENT DECREASES IN THE INDIVIDUAL DEPARTMENTS. OKAY. THAT MAKES SENSE TO YOU, SIR. THAT'S THE LARGEST. BUT WE NEED FEWER PEOPLE TO DO THE WORK THAT THEY'RE ACCOMPLISHING. I GUESS THAT'S THE DETERMINATION OF THE DEPARTMENT. A COMBINATION OF THINGS. THAT'S ONE, YES. EVERY YEAR WE EVALUATE. WE HAVE A PROGRAM THAT WILL ANALYZE VACANCY RATE ON A MONTH-BY-MONTH BASIS AND GIVE US THE METRICS. SO IF I HAVE POSITIONS THAT WE'RE FUNDING AND THEY ARE PERENNIALLY VACANT, OBVIOUSLY I DON'T NEED ALL OF THOSE POSITIONS AND I DON'T NEED TO ASK YOU TO FUND THEM. SO WE CLEAN THOSE UP EVERY YEAR. NOW, SOMETIMES WE DELETE ONE HERE AND PUT IT BACK, YOU KNOW, INTO SOMETHING THAT NEEDS IT AND CAN FILL IT. WE'VE HAD SEVERAL CHANCES WITH THE WORK THAT ERIC ROJINO AND HIS CREW ARE DOING. WE'VE DONE A REASONABLY SIGNIFICANT REORGANIZATION IN SOME OF THESE DEPARTMENTS. WE'LL HAVE ANOTHER ONE COMING, BUT IT WON'T BE IN THE BUDGET. IT'LL BE PROBABLY MID-YEAR TO DO THAT. WE'RE JUST TRYING TO MAKE THE MOST EFFICIENT USE OUT OF THE PEOPLE AND THE MONEY THAT WE CAN. SO TO SEE THIS, AND I GUESS I'M MAKING A POINT, TO SEE THIS, WE'RE NOT NECESSARILY SAYING WE WILL HAVE FEWER PEOPLE ON THE JOB. WE HAVE FEWER PEOPLE IN THE BUDGET. YES. THAT IS A WAY TO SAY IT. THANK YOU. AND IF YOU LOOK, AGAIN, FOR ALL OF OUR BENEFIT, AND MR. GREENS AS WELL, IF YOU LOOK ON PAGE 7, IT SHOWS THERE'S EIGHT REDUCTIONS IN THAT DEPARTMENT AND THE VARIOUS AREAS IN WHICH THOSE REDUCTIONS, LIKE ONE IN ADMINISTRATION, FOUR IN CUSTOMER RELATIONS, ET CETERA. AND SO THOSE ARE SPELLED OUT EARLIER IN THE OUTLAY FOR EACH OF THEM. I DIDN'T MEAN TO CUT YOU OFF, MR. COLLINS. YOU'VE GOT ANYTHING ELSE? SO, AGAIN, AS YOU GO BACK AND LOOK AT IT. YEAH. IF WE GO BACK AND LOOK AT PAGE 7 AND SEE THAT THERE'S EIGHT FEWER PEOPLE IN THE BUDGET, THAT DOES NOT NECESSARILY MEAN WE HAVE EIGHT FEWER PEOPLE IN THE WORKFORCE. [00:25:01] THERE ARE NONE OF THOSE THAT ARE OCCUPIED POSITIONS. RIGHT. OKAY. YOUR WORKFORCE DID NOT CHANGE. THE PART ABOVE THAT THAT WASN'T BEING FILLED AND USED IS WHAT'S CHANGING. THANK YOU. IMPORTANT DISTINCTION. ALL RIGHT. MAYOR, COUNCILWOMAN MARTINEZ GARCIA. THANK YOU, MAYOR. MAYOR, MY QUESTION IS, I KNOW THAT WE HAVE SET A TENTATIVE 3% FOR THE ADDITIONAL COLA FOR THAT ADJUSTMENT. IS THAT FIRM? ABSOLUTELY NOT. OKAY. SO WE COULD INCREASE THAT. YES, MA'AM. OKAY. THAT'S MY QUESTION. THAT'S ANOTHER REASON WE LEAVE IT OUT. IF THAT CHANGES, WE DON'T HAVE TO RECALCULATE THE ENTIRETY OF THESE BOOKS. WE RECALCULATE THAT LINE. OKAY. THANK YOU. THANK YOU. THANK YOU. ALL RIGHT. OTHER QUESTIONS? I HAVE ANOTHER ONE, I THINK. CAN YOU EXPLAIN THE DIFFERENCE BETWEEN, WE HAVE ON FUND LEVEL EXPENSES, WE HAVE A TRANSFER TO LP&L CITIZENS TOWER, THEN WE HAVE A TRANSFER TO DEBT SERVICE FUND CITIZENS TOWER. CAN YOU EXPLAIN THE DIFFERENCE BETWEEN THOSE TWO? SO THE TRANSFER TO LP&L CITIZENS TOWER, THAT'S A PRECEDING DEAL THAT ENDED IN FISCAL 23, AND IT'S BLANKED THE REST OF THE WAY OUT. IF YOU GO TO TRANSFER TO THAT. IF YOU GO TO TRANSFER TO DEBT SERVICE FUND CITIZENS TOWER, YOU CAN THINK OF THAT, THAT IS THE RENT FOR THE ENTERPRISE PEOPLE THAT ARE USING THIS BUILDING, ITS OFFICES. IN FACT, THE FACT THAT THE CITIZENS TOWER, LP&L IS NOT THERE ANYMORE, IT'S BECAUSE WE'RE NOT REALLY USING ANY PART OF THAT FACILITY FOR WASTE, WATER, WASTE WATER. IT WAS A CLARIFICATION IN THE ACCOUNTING THAT WE DID. ONE OTHER QUESTION I GUESS I HAD WAS WHEN YOU GO TO WASTEWATER, LET'S SEE, WASTEWATER DEPARTMENT OPERATIONS, THERE WAS A 141% INCREASE THERE, WHICH IS, I KIND OF ALWAYS LOOK FOR THINGS THAT ARE RATHER PREDOMINANT OR PROMINENT. CAN YOU EXPLAIN THAT? WHAT PAGE ARE YOU ON, MAYOR? THIS IS ON 10, UP AT THE TOP UNDER FUNDING SOURCES, WASTEWATER DEPARTMENT OPERATIONS, WENT FROM $1.2 MILLION LAST YEAR TO $2.9 MILLION IN THIS BUDGET. YEAH, I'LL NEED TO FLIP OVER INTO THOSE DEPARTMENT BUDGETS. WE HAVE NOTES ON THAT, BUT I JUST CAN'T CALL THEM AT THE MOMENT. OKAY, AND THEN MY OTHER QUESTION, AND IT'LL BE THE SAME ON ALL OF THESE, SO YOU COME DOWN, YOU HAVE YOUR FUNDING SOURCES AT THE TOP, $176 MILLION, YOU HAVE YOUR EXPENSES AT THE BOTTOM OF $168 FROM YOUR DEPARTMENT-LEVEL EXPENSES AND FUND-LEVEL EXPENSES. THE DIFFERENCE THERE OF THE $8 MILLION, WHERE DOES THAT GO? EITHER TO RESERVE OR TO FUTURE CAPITAL. SO IF YOU'RE SAVING INTO A CASH-FUNDED PROJECT, BUT YOU'RE NOT SPENDING IT THIS YEAR, AND ANYTHING ELSE THAT ENDS UP AS A REVENUE BIGGER THAN AN EXPENSE, THAT GOES TO RESERVE. IT DOES NOT GO TO A DEPARTMENT TO SPEND. AND I GUESS YOU DIDN'T HAVE TIME TO MAKE A BUCKET. I HOPE TO HAVE OUR BUCKETS FOR FRIDAY. SO THE MAYOR AND I WERE TALKING ABOUT HOW TO EXPLAIN THIS, AND HE CAME UP WITH A GREAT IDEA. I WILL ATTEMPT TO DO IT WITH WORDS. BECAUSE FRIDAY, WE'RE GOING TO TRY TO DO IT GRAPHICALLY. SO, AND UNDERSTAND, AND YOU WILL SEE A SHEET ON FRIDAY THAT SHOWS YOU EVERY SINGLE RESERVE FUND AND RESERVE DOLLAR THAT THE CITY HAS. EVERY FUND HAS ITS OWN RESERVE, AND THOSE RESERVES ARE NOT INTERCHANGEABLE BETWEEN FUNDS. SO THE ANALOGY THE MAYOR WAS RECOMMENDING IS A BUCKET, AND WE'LL CALL THIS BUCKET RESERVE. WE HAVE RESERVE POLICIES, AND THIS IS LARGELY GOING TO BE RELATED TO YOUR CREDIT RATINGS AND TO YOUR DEBT SERVICE REQUIREMENTS, WHERE YOU HAVE TO KEEP A PERCENT OF OPERATIONS ALWAYS IN THAT RESERVE BUCKET. FOR THE GENERAL FUND, IT'S 20%. ALL RIGHT. SO THIS RESERVE BUCKET HAS MONEY IN IT. THERE'S A LINE SOMEWHERE ON THAT BUCKET THAT'S GOING TO SAY 20%. IT'S THE TOP OF THE BUCKET. GO AHEAD. THE TOP OF THE BUCKET IS THE RESERVE LIMIT, IS IN MY BUCKET ANALOGY. BECAUSE THEN IT GOES OVER INTO THE NEXT BUDGET. WE CAN DO IT THAT WAY. I WAS GOING TO LEAVE IT A LITTLE BELOW THE TOP SO YOU CAN GO OVER AVAILABLE RESERVES. OKAY. ALL RIGHT. GOTCHA. ALL RIGHT. NOW, THERE ARE TWO BUCKETS INSIDE OF EVERY OPERATING BUDGET. THERE'S A REVENUE. I'M TALKING ABOUT ENTERPRISES. THERE IS A REVENUE BUCKET, SO CHARGES FOR SERVICE, SELLING WATER, SELLING [00:30:01] WASTEWATER, WHATEVER. REVENUE GOES INTO THAT BUCKET. THE TOP OF THAT BUCKET IS THE AMOUNT THAT YOU APPROVED IN YOUR BUDGET. SO IF THE REVENUE GOES OVER THE TOP OF THAT BUCKET, IT SPILLS INTO THAT RESERVE BUCKET. SO ANY REVENUE OVER THE BUDGET SPILLS RIGHT INTO THE RELATIVE RESERVE BUCKET. THE SECOND DEPARTMENTAL BUDGET IS THEIR EXPENSE BUDGET. SO IT STARTS 100% AT THE BEGINNING OF THE YEAR. WHEN IT ENDS AT THE END OF THE YEAR, IF THERE IS ANYTHING REMAINING IN THAT BUCKET, IT IS PICKED UP AND POURED INTO THE ONE THAT SAYS RESERVE. THE TWO OPERATIVE NUMBERS IN ALL OF YOUR RESERVE ACCOUNTS ARE THAT POLICY RESERVE. THAT'S THE AMOUNT WE HAVE TO KEEP. AND THEN ANYTHING ELSE THAT LANDS IN THERE IS WHAT WE CALL AVAILABLE RESERVE. WHAT DO YOU DO WITH AVAILABLE RESERVE? YOU NEED TO PUT IT BACK TO WORK FOR OUR CITIZENS FOR ONE-TIME EXPENSES. THE MOST COMMON FOR US, AND I'M JUMPING BACK AND FORTH BETWEEN ENTERPRISE AND GENERAL FUND, THAT'S HOW YOU WANT TO BUY VEHICLES. THAT'S HOW YOU WANT TO DO THE CAPITAL PROJECTS THAT DON'T REQUIRE BONDING. WHAT YOU DON'T WANT TO DO WITH IT IS PAY FOR AN EXPENSE THAT LASTS MORE THAN ONE YEAR. IF IT'S A RECURRING EXPENSE, YOU WILL SOON BE IN A DEFICIT BUDGET, OKAY? BECAUSE IF YOU PLAN FOR A RECURRING EXPENSE AND YOUR PLAN WAS ALWAYS TO TAKE IT OUT OF YOUR SAVINGS ACCOUNT, YOUR SAVINGS ACCOUNT WILL ALWAYS GET SMALLER. AND WE CAN ONLY DO THAT TO THAT POLICY LINE, OKAY? AND YOU'LL SEE THROUGHOUT THE MAJORITY, NOT ALL, BUT THE MAJORITY OF OUR BUDGETS WHERE WE'RE PROPOSING TO PUT AVAILABLE RESERVES TO WORK. IN ALL CASES THAT WE ARE DOING THAT, WE ARE STILL MAINTAINING THAT POLICY LEVEL, OKAY? I HOPE THE BUCKETS, IF WE CAN GET THEM ANIMATED, WILL MAKE MORE SENSE, BUT... OKAY. ANY OTHER QUESTIONS? MR. GREEN. YEP. GOING BACK AND... OH, FIRST OF ALL, THANK YOU FOR ALLOWING ME TO BE HERE. APPRECIATE THAT. GOING BACK TO OUR COMPENSATION, LAST YEAR WE BUDGETED FOR $14.6. THIS YEAR IT'S $13.799. AGAIN, WE LOOKED BACK, WE'RE BUDGETING FOR EIGHT LESS STAFF MEMBERS ON THAT. SO, IS THAT, DOES THAT $13.799 INCLUDE THE 3% COLA? IT INCLUDED A 2.5% COLA THAT WAS APPROVED LAST YEAR. OKAY. SO, YOU, YOU, YOU, ALL OF THESE WILL HAVE THAT COMPENSATION PIECE AS A, WHATEVER IT WAS APPROVED OF LAST YEAR. IN THE LAST YEAR'S COLUMN. OKAY. THANK YOU. MR. COLLINS. ONE LAST QUESTION AS WE TALK ABOUT BUCKETS. AVAILABLE RESERVE BUCKET GETS A FEW DOLLARS PUT INTO IT FROM THE WATER AND WASTEWATER FUND. ARE THOSE AVAILABLE RESERVE DOLLARS AVAILABLE TO BE USED IN A DIFFERENT BUCKET, SUCH AS FIRE BUCKET OR POLICE BUCKET? THEY ARE NOT. THEY ARE AVAILABLE ONLY TO BE USED FOR WET WATER AND WASTEWATER, WHERE THEY'RE GENERATED, FOR THEIR OWN SHORT-TERM NEEDS FOR EQUIPMENT, ET CETERA. THAT IS CORRECT. OKAY. THANK YOU. NONE OF OUR RESERVE BUCKETS CAN BE SHARED OUTSIDE THE FUND IN WHICH THEY WERE CREATED. IT WILL HAVE A NAME ON THE BUCKET. THEY HAVE A NAME. ALL RIGHT. ANY OTHER QUESTIONS? ALL RIGHT. THANK YOU ALL FOR THAT. WE'RE GOING TO SWITCH OVER AND START WALKING THROUGH THE PRESENTATION. YOU'VE GOT IT ON THE SCREEN. YOU SHOULD HAVE IT IN EMAIL FOR YOU TO DOWNLOAD, AND YOU SHOULD ALSO HAVE A PAPER COPY OF IT. REMEMBER THAT THIS IS WHERE WE'RE PULLING SUMMARIES TOGETHER. IF ANY OF THESE WE WISH TO GO DEEPER IN, THAT'S IN THE BINDER. ALL RIGHT. SO WE CAN BOUNCE BACK AND FORTH BETWEEN THEM IF WE NEED TO. ALL RIGHT. START WITH WATER AND WASTEWATER. AGAIN, WE'VE TALKED QUITE A BIT ABOUT IT AT THE FUND LEVEL. SO THE FIRST SLIDE THAT HAS THE INFORMATION IN IT, THIS IS GOING TO BE YOUR REVENUE SUMMARY. THE GRAY BOX ON THE LEFT IS LAST YEAR. IT'S TECHNICALLY THE CURRENT FISCAL YEAR. THE GRAY BOX ON THE RIGHT IS THE BUDGET FOR THE NEW YEAR. THE NEW YEAR IS FISCAL 27, FISCAL YEAR 27. ALL OF THE LITTLE MOVES IN BETWEEN THERE REPRESENT THE CATEGORIES THAT WE HAVE. SO [00:35:01] LIKE YOU SEE WATER SALES BLUE, 4.338, THAT'S IN MILLIONS, AND THAT IS THE ESTIMATED INCREASE IN WATER SALES. WASTEWATER, YOU SEE A 2.1, SAME. REVENUE GENERATED FROM DEPARTMENT OPERATIONS. MAYOR, THIS IS WHAT YOU ASKED, THE 1.4. YOU SEE A DECREASE IN INTEREST REVENUE. THEN YOU SEE OTHER REVENUE AND USE OF AVAILABLE RESERVES. SO THE NOTES THAT ARE ASSOCIATED WITH IT ARE IN THE BOTTOM. AND AGAIN, YOU'LL SEE THIS CONSTANT FORMAT AS WE GO FORWARD. SO THE WATER-METERED OPERATIONS IS AN INCREASE DUE TO AN INCREASE IN THE BASE RATE. VOLUMETRIC RATE, REMEMBER YOUR WATER IS BILLED WITH A STATIC MONTHLY BASE FEE AND THEN A VOLUMETRIC FEE. AND THEN WE ALSO PREDICT A SLIGHT INCREASE JUST IN TOTAL OVERALL CONSUMPTION. SO TEASER BEFORE WE GET INTO THE CAPITAL. COUNCIL, THIS IS THE MULTI-YEAR REVENUE MODEL THAT IS LEADING US INTO THE LAKE 7 STUFF. OKAY? AND IT REALLY CAME IN WITHIN A FEW PRETTY CLOSE PENNIES TO WHAT WE HAD SHOWN BACK IN JANUARY. SO YOU'LL SEE THAT IN MORE DETAIL LATER, BUT THAT'S WHAT'S MAKING THAT CHANGE. WE DON'T PROPOSE A CHANGE IN YOUR WASTEWATER RATES, SO THAT GROWTH IS SIMPLY BASED ON GROWTH AND CONSUMPTION. AS WATER CONSUMPTION GOES UP, WASTEWATER COMES BACK TO US MORE. THE DEPARTMENTAL OPERATIONS, THAT IS PRIMARILY WATER RECONNECT FEES AND CERTAIN REIMBURSEMENTS THAT WE GET FROM OTHER CITIES. THE REIMBURSEMENTS FROM OTHER CITIES IS EITHER GOING TO BE THROUGH THE LABS. WE HAVE CHEMICAL LABORATORIES THAT WE OPERATE. WE ALSO OPERATE TREATMENT, OR WE TREAT ON BEHALF OF SIX OTHER CITIES, AND THOSE ARE OUR SIX CRIMWA PARTNERS. INTEREST EARNINGS DOWN. INTEREST RATES REALLY HAVEN'T COME DOWN SIGNIFICANTLY. BUT YOU COLLECT INTEREST ON THE CASH THAT YOU HOLD, WHETHER THAT'S FOR A BOND-FUNDED PROJECT LIKE THE WEST LUBBOCK WATER EXPANSION, OR THAT'S THAT RESERVE BUCKET. AS YOU PUT THOSE DOLLARS TO WORK, THEY'RE NOT IN THE ACCOUNT. THEREFORE, THEY'RE NOT GOING TO COLLECT INTEREST. INTERESTINGLY, COUNCIL, YOU KNOW WE HAD A LOT OF DISCUSSION TWO YEARS AGO ABOUT OUR SEWER LATERAL REPAIR PROGRAM. AND WE DO HAVE USE OF THAT PROGRAM. I THINK IT'S SUCCESSFUL, BUT THE UPTAKE OF THAT HAS BEEN A FRACTION OF WHAT WAS PROJECTED. IT'S ACTUALLY WE'RE DOING LESS OF THAT THAN WE WERE DOING IT IN THE PRIOR MODEL. SO STILL OUT THERE, STILL FUNDED, WILL STILL HELP. WE JUST DON'T HAVE THE DEMAND FOR IT THAT IT LOOKED LIKE WE WOULD HAVE. AND THEN FOR THE COMBINED FUND THIS YEAR, WE'RE NOT USING AVAILABLE RESERVES. SO THEIR BUCKET FOR THAT IS STILL SITTING THERE. ALL RIGHT. LET'S DO THE SAME. SO WE JUST DID REVENUE. THIS WILL BE EXPENSE. AGAIN, WE'RE AT THE TOP. WE'RE AT THE FUND LEVEL. AND, OF COURSE, THESE WILL TIE BACK TO WHAT YOU'VE ALREADY SEEN. YOU SEE THE NET REDUCTION OF THE EIGHT FTES. OUR OPERATIONS AND MAINTENANCE EXPENSE IS GOING UP. LARGELY, THAT'S GOING TO BE CHEMICALS, PROFESSIONAL SERVICES, IT, BUT THE MAJORITY OF IT IS OUR BILL FROM CRIMWA IS GOING UP. AND WE ACTUALLY ASKED FOR THAT. SO THIS WAS THE WORK THAT LUBBOCK DID BACK LATE LAST YEAR AND THEN CULMINATED IN JANUARY WHERE WE WERE ENCOURAGING CRIMWA TO MAKE CERTAIN INFRASTRUCTURE REPAIRS REALLY JUST TO GUARANTEE THE SAFETY AND RELIABILITY OF THE EXISTING PIPELINE SYSTEM. WE KNEW THAT WOULD COME AT A COST. THE BOARD HEARD OUR REQUEST. OUR REQUEST, AND OTHERS, PRETTY MUCH ALL SEVEN OF US THAT ARE THE SOUTHERN SYSTEM, MADE THE SAME REQUEST. THEY'RE STARTING TO DO THAT CAPITAL WORK. THEREFORE, WE HAVE TO PAY THEM BACK. WE DON'T PAY 100% OF THAT COST. OUR TOTAL SPREAD ALLOCATION IN CRIMWA IS ABOUT 41%. OKAY? ALL RIGHT. DEBT SERVICE IS GOING DOWN, ABOUT $1.3 MILLION. WE'RE ROLLING DEBT OFF. THAT FITS THE DEBT PROFILES THAT WE SHOW EVERY YEAR. OUR EXPENSE ASSOCIATED WITH THE BUSINESS OFFICE, CITY OF LUBBOCK UTILITIES, IS GOING UP THIS YEAR. SO YOU WILL SEE THAT IN ALL OF OUR BILLED UTILITIES. THE PILOT AND THE FF&E, SO THE FRANCHISE FEE EQUIVALENT PAYMENT AND THE TAX, THOSE ARE GOING UP BECAUSE THE REVENUES AND THE FIXED ASSETS ARE GOING UP. AND THEN WE DECREASED TRANSFERS TO CAPITAL BECAUSE CAPITAL IMPROVEMENT NEEDS ARE DECREASING SLIGHTLY. BUT WE HAVE AN INCREASED TRANSFER TO FLEET [00:40:01] FOR REPLACEMENT VEHICLES. WE SHOULD START TRIGGERING OUR FULLY FUNDED FLEET REPLACEMENT NEXT YEAR IN THIS GROUP. IT WILL NOT BE FOR EVERYTHING THAT COMES UP, BUT IT WILL BE FOR A LOT OF THEM. AND THEN THAT WILL MAKE A POSITIVE IMPACT ON THAT PARTICULAR LINE ITEM. WE'LL TALK ABOUT RATES, THE FUN STUFF. I'M GOING TO EXPAND THIS A LITTLE BIT ON THE SCREEN. THIS IS A MULTI-YEAR RATE MODEL. I'M GOING TO CHOP THE ENDS OF IT OFF JUST SO THEY'RE A LITTLE BIT LARGER, A LITTLE BIT EASIER TO SEE. THIS IS WHERE YOU ROLL EVERYTHING UP AND END UP DRIVING YOUR RATES OR CALCULATING YOUR RATES. SO AT THE TOP, YOU CAN SEE THE DECREASE IN THE INTEREST REVENUES. YOU SEE LICENSE AND PERMIT, ENTERPRISE FEES, RENTAL RECOVERY, REVENUE FROM METERED SERVICES, GETTING YOU BACK TO THAT $176.6 MILLION. YOU SEE THE CHANGES IN THE SALARIES, THE PERSONNEL, THE BENEFITS, GETTING YOU DOWN TO THE OPERATIONS AND MAINTENANCE. YOU'VE GOT THE INDIRECT COST ALLOCATION, TRANSFER TO LPL. THIS IS ALL OF THEM COMBINED OVER TO LUBBOCK POWER AND LIGHT. TRANSFERS TO OTHERS, THAT'S YOUR FLEET, YOUR CAPITAL, THOSE THINGS. PAY-AS-YOU-GO FUNDING IN THE CIP. SO WE EXPECT TO END OUR CURRENT FISCAL YEAR AT 20.9. THAT'S AT THE BOTTOM. AND OUR PAY-AS-YOU-GO, OR CASH CAPITAL FOR THE NEW YEAR, IS 16.9. ALL RIGHT? YOU TAKE THESE, THEY ROLL UP, AND THEY GO OVER HERE. SO AT THE TOP, UP IN THE BLUE, THE PROPOSAL IS FOR A $0.65 PER MONTH CHANGE TO THE BASE RATE, A 1% INCREASE ON THE VOLUME RATES, AND NO CHANGES ON WASTEWATER. SO THIS IS ALL INSIDE OF WATER FOR THIS ONE. ALL RIGHT. GO UP TO THE TOP. YOU'VE GOT EXISTING DEBT SERVICE. YOU LOOK AT 26 AND 27. YOU TAKE OUT THE INTEREST EARNINGS THAT WE'RE GENERATING OFF OF THOSE DOLLARS. VEHICLE AND EQUIPMENT DEBT, WHICH YOU SEE IS ACTUALLY ROLLING OUT IN THIS GROUP. AND THEN YOU GET YOUR TOTAL DEBT SERVICE. WE HAVE A LINE FOR NEW DEBT SERVICE. WE'RE NOT ROLLING IT ON THIS YEAR. WE'RE STARTING TO CREATE FUNDING TO COVER IT NEXT YEAR. OKAY? SO JUST AS WE CAN DO PAY-AS-YOU-GO CAPITAL, WE'RE TRYING TO DO, TO THE EXTENT WE CAN, PAY-AS-YOU-GO INTO THESE LARGE LAKE 7 EXPENSES. WE'RE TRYING TO AVOID WHAT THEY CALL RATE SHOCK. WE'RE WANTING TO DO A MORE GENTLE STEP RATHER THAN HAVING HUGE JUMPS IN IT. COME DOWN TO THE KEY FINANCIAL STATISTICS, KIND OF IN THE MIDDLE OF THE PAGE. REVENUE, EXPENSE, DOLLARS AVAILABLE FOR DEBT SERVICE COVERAGE. THESE NUMBERS REPRESENT YOUR BUDGET. THEY'RE PRESENTED DIFFERENTLY BECAUSE THIS IS HOW THE RATING AGENCIES DO THEIR MATH. YOU TAKE THAT $58 MILLION IN DEBT SERVICE, NEARLY $59 MILLION, WE HAVE A COVERAGE RATIO IN THE NEW YEAR OF 1.91. SO THAT MEANS WE GENERATE AVAILABLE REVENUE THAT IS 1.91 TIMES LARGER THAN OUR REQUIRED DEBT SERVICE. THE TARGET, WHAT WE'RE SUPPOSED TO DO TO KEEP THE RATINGS WHERE THEY ARE, TO GENERATE THE BEST INTEREST RATE THAT WE CAN GET, THAT TARGET IS 1.75. I'M GOING TO MOVE US ACROSS TO THE SIDE. NOW YOU CAN SEE OUT TO 2032. THAT'S THE COLUMN ON THE RIGHT. SO YOU CAN SEE AT THE MOMENT, WITH NO OTHER CHANGES, WE DROP TO 1.71 IN 31 AND 1.68 IN 32. SO YOU CAN SEE HOW WE SLOWLY BUILD AND WE SLOWLY COME DOWN. COUNCIL, PREVIOUSLY WE SHOWED YOU ALL A 10-YEAR MODEL. WE ALSO TOLD YOU THAT MODELS THAT FAR OUT ARE PRETTY TOUGH. IT'S IN THAT MODEL TO PULL THOSE METRICS BACK TO MATCH. OKAY? SO LET'S GO DOWN AND LOOK AT A COUPLE MORE. YOU HAVE YOUR RESERVE POLICY. THIS ONE IS 25% OF REVENUE. SO YOU TAKE THAT OUT. YOU HAVE AN ENDING NET POSITION. SO FOR 26, IT WAS $50.3 MILLION. OUR RESERVE FUND REQUIREMENT, 25% OF REVENUE, WAS $40 MILLION. THAT LEFT YOU $10.029 MILLION. [00:45:01] CARRY THAT OVER TO THE NEW YEAR, 27. WE'VE TAKEN THE 1002. IT GOES BACK INTO THE TOP OF THE CALCULATIONS. THAT'S WHERE YOU GOT $58.9 MILLION. RESERVE REQUIREMENT INCREASED SLIGHTLY BECAUSE REVENUE INCREASED. BUT IT SHOWS TO END THE YEAR AT 17.6. OKAY? SO THAT'S MOVING IN A DIRECTION THAT BUILDS YOU CASH TO APPLY TO CURRENT AND TO FUTURE PROJECTS. ALL RIGHT? ONE OF THE KEY METRICS THAT WE GET GRADED ON AS WE TRY TO BOND ALL THESE HUGE PROJECTS THAT ARE COMING IS WHAT IS YOUR BASE RATE AS A PERCENTAGE OF DEBT SERVICE? THE REASON THE RATERS DO THAT ON SOMETHING THAT'S VARIABLE. WE CAN PREDICT KIND OF HOW MUCH WATER WE'RE GOING TO SELL IN A YEAR, BUT ALL WE HAVE TO DO IS BE HOT AND DRY OR COOL AND WET, AND THAT'S CHANGED. WHAT THAT MEANS IS THE BASE RATE IS ALWAYS THE SAME. THE VOLUME WILL FLUCTUATE JUST BASED ON WHATEVER THE CONDITIONS ARE IN OUR COMMUNITY. THE RATING AGENCIES WANT TO SEE THAT BASE RATE AS A PERCENT OF DEBT SERVICE AS CLOSE TO 100 AS YOU CAN GET IT. SO IN OUR CURRENT YEAR, WE'RE AT 93. WITH THOSE CHANGES, THE 65 CENTS AND THE 1%, YOU'RE COMING UP TO 97%. I'M GOING TO START MOVING TO THE RIGHT SIDE OF THE PAGE, SO KIND OF KEEP YOUR EYES DOWN THERE ON THE BOTTOM FOR ME. YOU CAN SEE IN 28, WE THINK IT'LL BE 95, 104, 100, AND THEN IT STARTS TO FALL BACK DOWN AGAIN. SO AGAIN, THERE'S GOING TO BE FUTURE ADJUSTMENTS, BUT THE WAY WE'VE BUILT THE MODELS, THEY'RE GOING TO BE SMALL AND INCREMENTAL RATHER THAN RUNNING UP TO A STARTING LINE AND TRYING TO TAKE IT ALL AT ONCE AND COMING BACK DOWN. JUST A REMINDER FOR THOSE THAT WERE HERE WHEN WE DID THAT BACK IN JANUARY, DOING IT THIS WAY ACTUALLY ENDS UP TO WHERE IT NEVER GETS AS HIGH AS IT WOULD IF YOU DID IT BY WALKING, HOLDING STILL, AND THEN JUMP. SO THAT THIS LOOKS MORE LIKE A STAIR-STEP MODEL THAT WILL WORK ITS WAY OUT AND SLOWLY COME BACK DOWN RATHER THAN A HUGE SPIKE AND EVENTUALLY A SUBSTANTIAL DROP. SO YOU'RE GOING TO END UP CHARGING LESS AND TAKING LESS AND STILL FUND WHAT YOU'RE TRYING TO FUND. ANY QUESTIONS ON THAT? THESE ARE PRETTY CRAZY IF YOU HADN'T SEEN THEM BEFORE. COUNCILWOMAN MARTINEZ-GARCIA. OOPS. I DIDN'T. YEAH, I'M SORRY. ALL RIGHT. SO AS WE LOOK AT THE BOTTOM TOTAL AVAILABLE RESERVES, OF COURSE, THEY CLIMB ACROSS THAT TIME PERIOD. AND THOSE RESERVES ARE IN PLACE MOSTLY FOR OUR LAKE 7 PROJECT, HAVE AVAILABLE FOR OUR LAKE 7. AND IT KEEPS YOU OUT OF THE NEED OF A SHORT-TERM DEBT TO FUND CAPITAL PROJECTS THAT WE CAN NOW COVER WITH CASH. RIGHT. ALL RIGHT. ANY OTHER QUESTIONS? ALL RIGHT. OKAY. NOW, WHAT DOES ALL THAT MEAN IN REAL DOLLARS FOR OUR CUSTOMERS? ALL RIGHT. ON WATER, LET'S GO TO THE WATER VOLUME RATE. AND YOU SEE THAT 0 TO 1,000, THOSE ARE GALLONS. THOSE ARE GALLONS PER MONTH. THERE'S NOTHING ON THAT LINE ITEM. BECAUSE YOUR BASE RATE INCLUDES THE FIRST 1,000 GALLONS OF WATER. SO WE DON'T GET INTO THOSE TIERS OR THOSE STEPS UNTIL YOU GET TO THOSE NEXT CATEGORIES. SO FOR THE 1,000 TO 5,000, IT GOES FROM $4.10 TO $4.14. THE NEXT ONE'S PROBABLY THE BETTER ONE TO USE, THE AVERAGE HOUSE IN LUBBOCK. NOW, REMEMBER, YOU'RE AVERAGING ACROSS NEARLY 110,000 PROPERTIES. BUT THE AVERAGE HOUSE IN LUBBOCK IS GOING TO COME IN SOMEWHERE AROUND $7,500 TO $7,800 A MONTH. LESS IN THE WINTER, MORE IN THE SUMMER. BUT THAT PARTICULAR BAND GOES FROM $7.15 TO $7.22. AND SO A 7 CENT, 7 PENNY CHANGE. AND THEN YOU CAN SEE HOW THAT STEPS UP. FOR THE BASE RATE, A THREE-QUARTER-INCH METER TODAY IS $18.75. IT WOULD BE $19.40. A ONE-INCH METER, $31.31 TODAY, $32.40 TOMORROW. [00:50:05] AND THEN THE SPREADS GET BIGGER AS THE METERS GET BIGGER BECAUSE IT'S A HIGHER LEVEL OF SERVICE. ANY QUESTIONS ON THAT? OKAY, LET ME GO TO THE BOTTOM. THIS IS WASTEWATER. THIS IS MUCH EASIER. NO CHANGE. WHAT YOU HAVE TODAY IS WHAT YOU HAD YESTERDAY, WHICH IS WHAT WE'RE SUGGESTING THAT YOU HAVE TOMORROW. OKAY. OKAY, LET'S TALK ABOUT THE CAPITAL IN WATER. AND I'M GOING TO FOCUS PRIMARILY ON THOSE THAT HAVE SOMETHING IN THE COLUMN THAT SAYS BUDGET FY 2027. THAT'S MONEY WE'RE ADDING TO CAPITAL OR NEW CAPITAL. SO THE LAKE 7 PERMITTING AND PLANNING, CIP, THAT'S NOT THE ONLY LAKE 7 PROJECT. BUT THAT ONE'S EXCLUSIVE TO A PARTICULAR SET OF SERVICES FROM HDR ENGINEERING. WE NEED TO ADD ANOTHER $1 MILLION TO THAT, AND IT'S CASH FUNDED. LOCATE AND REPAIR WATER VALVES. THIS IS THE ONGOING KEEP YOUR SYSTEM RUNNING AND MAKE THINGS WORK THE WAY THEY ARE SUPPOSED TO WORK. $600,000 TO ADD. WATER DISTRIBUTION SYSTEM AND SUPPLY MAINTENANCE AT $100,000. THAT IS ALSO ONGOING WORK THAT MR. BEARDEN AND HIS TEAM DO FOR US. LAKE 7 DESIGN AND LAND ACQUISITION. THIS IS DIFFERENT THAN PERMITTING. THIS IS ALL OF THE PRELIMINARY ACTUAL DESIGN ENGINEERING THAT WE HAVE TO DO ASSOCIATED WITH GETTING OUR SECOND PERMIT, THE CORPS OF ENGINEERS 404 PERMIT. SO THIS IS WHERE WE'VE HAD LAND ACQUISITION MONEY. LAND ACQUISITION TO DATE HAS REALLY BEEN THE PURCHASE OF THE V8 RANCH. WE'VE GOT SOME MORE TEED-UP COUNCIL THAT YOU'RE AWARE OF AND YOU'LL BE SEEING. BUT WE ALSO HAVE TO HAVE PRELIMINARY DESIGN ON THE DAM, SOME OF THE INTAKE STRUCTURES, PUMPING, PIPING, AND TREATMENT. SO YOU'RE STARTING TO MOVE INTO MONEY. SO THAT'S $29.6 MILLION. AS THIS IS A MULTI-GENERATION PROJECT, WE SUGGEST THAT THAT NEEDS TO BE FUNDED THROUGH A 30-YEAR BOND. PEOPLE TODAY AND PEOPLE FOR GENERATIONS WILL BENEFIT FROM THAT. AND THIS SPREADS THE COST AND KEEPS ALL OF IT OFF OF TODAY. NORTH TERMINAL STORAGE RESERVOIR IMPROVEMENTS. THAT IS WHAT YOU HEAR US REFER TO AS THE TSR OR TERMINAL STORAGE RESERVOIR. THAT IS THE BIG RAW WATER RESERVOIR THAT YOU SEE OUT BY THE AIRPORT. THAT WAS CONSTRUCTED IN THE EARLY 1960S. WE NEED TO DO A LITTLE MORE CLEANING AND WORKING AND VALVES AND SO FORTH ON THAT. CACHE. WEST LUBBOCK WATER SYSTEM EXPANSION. THIS IS THAT THIRD PRESSURE PLANE THAT IS LOCATED DUE WEST. COUNCIL, REMEMBER, THAT IS A PUMP STATION, A GROUND STORAGE STATION, AN ELEVATED STORAGE TANK, A WATER TOWER, AND THEN ALL OF THE CONNECTING LINES AND OTHER THINGS THAT IT TAKES TO MAKE THAT WORK. THIS IS THE FINAL TRANCHE OF THAT PROJECT. IT WAS PREVIOUSLY FUNDED THROUGH 20-YEAR NOTE. WE'RE SUGGESTING YOU PULL THAT FINAL PIECE DOWN ALSO AS THE 20-YEAR NOTE. AGAIN, THAT IS AN IMPROVEMENT THAT WILL RUN FOR DECADES. PUMP STATION 11B. THE $6,250,000, YOU SEE HIS FUNDING TO DATE, THAT'S THE PRELIMINARY WORK THAT KIND OF GOT US TO WHERE WE KNOW WHAT WE NEED TO DO FOR 11B. THAT IS THE MAJOR PUMP STATION THAT, NUMBER ONE, IT SERVES A HUGE PART OF THE CITY TODAY, ESPECIALLY WITH THE CREMLOIS WATER COMING OUT OF NORTH TREATMENT. BUT IN THE FUTURE, 11B IS ALSO THE SURETY THAT WE NEED THAT WE CAN TAKE ANY OF THE LAKE 7 WATER ACROSS TOWN TO ANY OTHER POINT IN TOWN. REMEMBER, WE'VE DONE A LOT OF PROJECTS OVER THE LAST 10 YEARS SUCH THAT ANY OF YOUR THREE SOURCES OF SUPPLY TODAY CAN GO TO ANY SPOT IN YOUR SYSTEM. THIS WILL DO THE SAME WHEN LAKE 7 ROLLS ON. OKAY, NEXT PAGE, WATERLINE REPLACEMENT FISCAL YEAR 2025. THIS IS YOUR ONGOING REPLACEMENT OF OLD AND UNDERSIZED WATERLINES. THESE ARE PRIMARILY FOUND IN RESIDENTIAL AREAS AND GENERALLY IN THE OLDER RESIDENTIAL AREAS. WE ALWAYS PUT MONEY IN. WE ALWAYS DO THOSE CHANGE-OUT PROJECTS. MOST OF THAT WORK WE DO IN-HOUSE. FIRE HYDRANT REPAIR AND REPLACEMENT. IT'S KIND OF A SHOCKING NUMBER HOW MANY FIRE HYDRANTS WE HAVE. I BELIEVE WE'RE PUSHING 8,000 ACROSS TOWN, SO WE KEEP ALL THOSE WORKING. LARGE VALVE PROJECT. THIS IS A SPECIAL SET-ASIDE OF MONEY OR A UNIQUE SET-ASIDE OF MONEY FOR THE VERY, [00:55:02] VERY BIG VALVES THAT ARE ON OUR MAIN TRANSMISSION LINES. SO THINK 24-INCH, 36-INCH, AND BIGGER THAN THAT. VALVES ARE VERY LARGE. THEY'RE VERY EXPENSIVE. PUMP STATION 8 IMPROVEMENTS. ONGOING, KEEPING THINGS RUNNING OUT THERE. GOING TO THE NEXT, THE POST BOOSTER PUMP STATION VALVE REPLACEMENT. SO THE LAKE ALLEN HENRY WATER COMES OUT BEHIND THE DAM. IT IS PRESSURIZED AND PUMPED UPHILL TO POST. FROM POST, IT IS PRESSURIZED AGAIN AND PUSHED UP TO THE SOUTH TREATMENT PLANT. WE NEED TO DO SOME WORK ON SOME OF THE VALVES IN THERE. IT IS CRITICAL FOR THE REDUNDANCY AND THE SAFETY OF THAT SYSTEM. THAT'S CASH. LAKE 7 DISTRIBUTION PIPELINE FOR WEST LUBBOCK. THAT'S GETTING US READY TO DO WHAT WE NEED FOLLOWING 11B AND THESE OTHER THINGS TO KEEP IT ALL CONNECTED. LAKE ALLEN HENRY SUPPLY SYSTEM TREATMENT IMPROVEMENTS. THAT IS WORK AT YOUR SOUTH PLANT. FIRE HYDRANT METER REPLACEMENTS. THESE ARE THE METERS, THE FIRE HYDRANT METERS, THAT WE RENT GENERALLY TO CONTRACTORS THAT ALLOW THEM TO CONNECT TO A FIRE HYDRANT TO GET WATER TO USE FOR PROJECTS IN LUBBOCK. THIS ALSO IS LETTING US CONVERT THOSE METERS TO AUTOMATED READING METERS. CASH MONEY. REDUNDANT BACKWASH PUMPING. SOME OF THESE NAMES ARE REALLY FUN. REDUNDANT BACKWASH PUMPING, NWTP, THAT IS THE NORTH WATER TREATMENT PLANT. THAT'S THE BIG ONE AT THE AIRPORT. THAT IS WHERE ALL OF THE CREMOL WATER COMES IN TO LUBBOCK. SO REDUNDANT BACKWASH MEANS WHAT IT SAYS. WE HAVE MASSIVE FILTER BEDS OUT THERE. YOU HAVE TO BACKWASH THEM OCCASIONALLY TO GET THE CONTAMINANTS OUT. WE NEED TO HAVE A SECOND SYSTEM TO DO THAT IF ONE SYSTEM IS DOWN SO THAT WE CAN KEEP THE FILTER BEDS RUNNING. AND THEN REPLACE HVAC AT NORTH WATER TREATMENT PLANT. THIS IS THE HEATING AND COOLING SYSTEM. ENTIRELY THAT PLANT WAS BUILT IN THE VERY EARLY 1960S. IT'S KIND OF HAD A HARD LIFE LATELY. SO YOU REMEMBER A YEAR AGO WE DID A BUNCH OF ROOF WORK ON IT. NOW WE'RE GOING TO COME IN AND REPLACE THE HVAC. THAT IS ALL CASH. SO LET'S GO TO THE BOTTOM LINE, THE BOTTOM ROW, TOTAL WATER. BUDGET, FISCAL YEAR 27, THERE ARE $75.6 MILLION WORTH CAPITAL PROJECTS. NEW CASH, SO MONEY WE'RE TAKING TODAY, IS $12.1 MILLION. THE OTHER CATEGORY, THAT IS EXISTING CASH. SO THOSE ARE DOLLARS THAT ARE REMAINING IN A CAPITAL PROJECT THAT'S FINISHED. SO NO NEED TO LET IT SIT. WE CAN TAKE THAT AND ASK YOU TO APPLY IT TO OUR NEW STUFF. SO THAT'S WHAT YOU'LL LET. YOU'LL SEE THAT SAME TERMINOLOGY IN ALL OF THEM. AND THEN THE BOND-FUNDED PROJECTS ARE $61.6 MILLION. PRIMARY MAJORITY OF THOSE ARE ASSOCIATED WITH LIKE SEVEN. AND THEN I GUESS I WOULD POINT OUT THAT THE FIGURE AT THE BOTTOM, THE NEW CASH, FUNDING SOURCE, $12.1 MILLION. IF YOU GO BACK TO PAGE 10, YOU WILL SEE THAT FIGURE PRETTY MUCH ON THAT ONE. TRANSFER TO WATER CAPITAL, IS THAT WHERE THAT WOULD BE? THAT IS EXACTLY WHERE IT WOULD BE, MAYOR. AND SO ON THAT LINE, TRANSFER TO WATER CAPITAL, $12.286. THERE'S A LITTLE VARIANCE BETWEEN THEM, BUT $100,000, BUT I DON'T KNOW. I MIGHT CHECK THOSE TWO FIGURES. BUT THAT'S WHERE THOSE APPEAR THEN ON THIS OTHER CHART. THAT'S CORRECT. AND THE WASTEWATER WILL BE THE SAME ONE. GO DOWN A COUPLE OF LINES, AND YOU'LL SEE THE WASTEWATER FIGURE AGAIN AS WE GO THROUGH IT. I'M DOING ALL THE THINGS, MR. GREEN, THAT I WANTED TO HAVE HAPPEN WHEN I WAS UP HERE. AND, YOU KNOW, TO MAKE THE CONNECTIONS, BECAUSE I KNOW IT'S TOUGH. YES. SO IF YOU LOOK, IF YOU SEE AT THE BOTTOM OF PAGE 12 OF WHAT HE WAS JUST WORKING OFF OF, WHERE NEW CASH FUNDING SOURCE IS 12.186039, THAT'S NEW CASH FUNDING FOR THESE PROJECTS. YOU GO OVER TO PAGE 10 IN YOUR BOOK HERE, DOWN INTO FUND LEVEL EXPENSES, ABOUT HALFWAY, ABOUT A THIRD OF THE WAY DOWN, IT SAYS TRANSFER TO WATER CAPITAL. AND YOU GO ACROSS THERE, AND IT SAYS 12.286039 THERE. THAT'S A TYPO OR SOMETHING. THEY CAN CORRECT THAT. YEAH, IT'S EXACTLY 100. WE'LL CHECK THAT OUT. YEAH, THAT'S WHERE IT APPEARS. YOU RUN THESE MANY NUMBERS. WE'RE GOING TO FIND A FEW LITTLE. BUT THAT'S WHERE IT APPEARS OVER HERE ON THIS CHART, IF YOU'RE TRYING TO. I'D LIKE TO SAY WE DID THAT SO THAT Y'ALL WOULD STAY AWAKE, BUT I PROBABLY MADE A MISTAKE. ALL RIGHT. DON'T YOU JUST LOVE IT, [01:00:01] THE ONE GUY, YOU'VE GOT 01,000, 2,000 PAGES, AND SOME GUY FINDS THAT ONE, PROBABLY THE ONLY MISTAKE IN THERE. I JUST HOPE IT IS THE ONLY ONE, BUT I'M NOT WILLING TO BET MY WATER BOTTLE ON IT. EAGLE EYE. OKAY, ANY MORE ON WATER CAPITAL? ALL RIGHT, WE'LL JUMP OVER TO THE WASTEWATER CAPITAL. YOU SEE ON HERE SEWER LATERAL LINE REPLACEMENTS. WE SAID THAT THE USE OF THAT PROGRAM WAS LESS THAN WE SUGGESTED. PRIOR, THAT HAD BEEN BUDGETED AT A MILLION A YEAR. WE STILL HAVE MONEY LEFT IN THAT TO ADD A MILLION BACK TO IT. SO WE'RE ASKING FOR 500, ALL CASH. WE MOVE DOWN TO WATER RECLAMATION, ELECTRICAL REPLACEMENT, AND MONITORING. WATER RECLAMATION IS WASTEWATER TREATMENT. SO 1.25 MILLION. LIFT STATION REHABILITATION. THAT IS AN ONGOING PROJECT THAT WE KEEP MONEY IN TO GO THROUGHOUT THE YEAR. WE HAVE 30-SOME-ODD LIFT STATIONS IN OUR SYSTEM, AND WE NEED TO KEEP THOSE GOING. SO THE BIG ONE, S-E-W-R-P, IS THE SOUTHEAST WATER RECLAMATION PLANT. THAT IS THE BIG ONE DOWN BY LAKE 6, OR SITTING ON THE BACKSIDE OF THE CEMETERY, MAYBE ANOTHER WAY TO SAY IT. THE HEAD WORKS IS WHERE ALL OF THE EFFLUENT FOR THE CITY, SAVE A VERY SMALL AMOUNT THAT GOES NORTH, COMES IN. THAT'S AN OLD PLANT. IT'S A PLANT THAT HAS BEEN CONTINUALLY UPGRADED. WE'VE DONE, THAT'S WHERE YOUR STREAM-QUALITY WATER IS MADE. THAT'S WHERE WE'RE DOING ALL OF THAT. THE NEXT BIG STEP OUT THERE IS THE HEAD WORKS. SO THIS IS WHAT THAT FUNDING IS FOR. THE SYSTEM WE HAVE TODAY, IT WORKS, BUT IT REALLY DOESN'T HAVE A FAIL-SAFE IN IT, AND IT NEEDS TO. WE NEED TO HAVE, RATHER THAN ONE LARGE SYSTEM, WE NEED TO HAVE A CHAIN OF SMALLER SYSTEMS SO THAT WE CAN KEEP IT GOING. WE ALSO DON'T HAVE A WAY TO, I WOULD SAY THIS, TO TEMPORARILY STORE INCOMING RAW EFFLUENT IF THE HEAD WORKS ISN'T RUNNING, AND HAVING SOME AMOUNT, SOME ABILITY TO KEEP SOME OF THAT WHILE YOU'RE GETTING SOMETHING ELSE BACK UP AND RUNNING IS VERY IMPORTANT. I'LL SAY THAT NICELY. I'LL BRING PICTURES IF YOU'D LIKE. NO PICTURES. NOT WHEN WE'RE TALKING WASTE WATER, PLEASE. OKAY. GOING TO THE NEXT PAGE. SEWER LINE UPSIZING FOR DEVELOPMENT. THIS IS A PROGRAM THAT WE HAVE. WE ALSO HAVE IT IN WATER, BUT WE DIDN'T PUT NEW MONEY IN IT. IF A DEVELOPMENT IS COMING IN, AND THEY'RE GOING TO EXTEND THAT SEWER SERVICE, AND WE KNOW THAT THERE'S SOMETHING COMING FARTHER DOWN THE LINE ON THE OTHER SIDE OF THAT PIPE, WE CAN PARTICIPATE IN PAYING THE DIFFERENCE BETWEEN, SAY, A 10-INCH COLLECTION LINE AND A 12-INCH COLLECTION LINE. IT MAKES SENSE. THIS IS A PARTNERSHIP DEAL THAT HAS WORKED VERY WELL. MOVING DOWN, CENTER PIVOT REPLACEMENT. $400,000. WE REPLACED A COUPLE OF THEM THIS YEAR. WE HAVE A COUPLE OF MORE TO GO. DOING THIS IS GOING TO SLOW DOWN DRAMATICALLY IN THE FUTURE, BECAUSE TODAY THAT IS PART OF HOW WE GET RID OF TREATED EFFLUENT. AS WE ROLL INTO LAKE 7, FULL STREAM QUALITY TREATMENT, WE WON'T NEED THIS AS MUCH. IN FACT, WHAT WE WILL KEEP IS A SMALL PIECE OF IT, REALLY JUST AS A SAFETY VALVE. BUT WE'RE STILL TRYING TO DO SOME UPGRADES. MANHOLE REPLACEMENT ON INTERCEPTORS. INTERCEPTORS ARE YOUR MASSIVE GRAVITY FLOW SEWER LINES WHERE ALL THE NEIGHBORHOODS HAVE ALREADY DEPOSITED THAT WASTEWATER, AND IT'S JUST DOING THE MAINTENANCE ON THAT. ANNUAL SEWER LINE REPLACEMENT PROGRAM, 425. WASTEWATER GENERAL MAINTENANCE, 250. DEMOLITION OF LIFT STATION, 45,000, 75,000. EVERY TIME WE'RE ABLE TO FIND A WAY TO ELIMINATE A LIFT STATION, WE DO. THE FEWER OF THOSE WE HAVE IN THE SYSTEM, THE BETTER. YOU'LL NEVER GET RID OF ALL OF THEM. BUT WE'VE HAD PRETTY GOOD LUCK CHEWING THEM DOWN. EXPLAIN FOR JUST A SECOND WHAT A LIFT STATION DOES. SO LUBBOCK IS NOT BLESSED WITH A LOT OF NATURAL GRAVITY. I MEAN, WE'RE FLAT. SO THERE'S A LIMIT REASONABLY TO HOW DEEP YOU WANT A SEWER LINE TO GET. SEWER LINES ARE LAID ON AN ANGLE, ALWAYS FLOWING DOWNHILL. SO THAT OLD SAYING IS TRUE. THERE'S A LIMIT TO HOW FAR DOWN WE WANT IT TO GET. SO WHAT A LIFT STATION DOES IS IT COLLECTS THAT WATER AT A PARTICULAR LOW POINT, AND IT PUMPS IT OUT UNDER PRESSURE. SO IT BECOMES WHAT YOU'LL HEAR CALLED A FORCE MAIN. IT PUMPS IT OUT UNDER PRESSURE TO THE NEXT AVAILABLE GRAVITY LINE, IDEALLY ONE OF THE BIG INTERCEPTORS. WE'RE LIFTING IT UPHILL SO THAT WE CAN TURN IT LOOSE IN SOMETHING ELSE AND LET GRAVITY TAKE BACK OVER. I FIND ALL THIS SO FASCINATING, [01:05:03] BUT MAYBE EVERYBODY DOESN'T. BUT JUST THE THING YOU NEVER SEE THAT'S UNDERGROUND THAT HAS TO HAPPEN IS JUST AMAZING TO ME. SO, YEAH. OKAY, MOVING ON. MAYOR, NOW I'VE LOST MY PLACE HERE. ALL RIGHT, HERE WE GO. SOUTHEAST WATER RECLAMATION PLANT ADMINISTRATION LAB BUILDING RENOVATIONS. THAT'S THE ONE PART OF THAT PLANT THAT WE REALLY HAVEN'T DONE A LOT TO OVER THE YEARS. AND KIND OF SHAMEFUL TO ADMIT, BUT A BIG PART OF THAT IMPROVEMENT IS THE ACTUAL SEWER LINES THAT ARE UNDER THAT BUILDING THAT SERVE THAT BUILDING. LARGE EQUIPMENT REPLACEMENT MEANS WHAT IT SAYS. THE PLANT 3 INFLUENT LINE INTEGRITY IMPROVEMENT. PLANT 3 IS ONE OF THE MULTIPLE TREATMENT SYSTEMS THAT IS INSIDE OF THE SOUTHEAST PLANT. PLANT 3 IS ONE OF THE BIG GUYS. PLANT 3 IS STREAM QUALITY. AND IT'S JUST KEEPING UP WITH IT. WASTEWATER AT ANY STEP OF ITS TREATMENT UNTIL IT'S FINISHED IS HIGHLY, HIGHLY CORROSIVE. IT IS HARD ON STUFF. THAT'S WHAT HAPPENS TO YOUR MANHOLES AND ALL OF THAT. SO THOSE WILL NEVER END. YOU'LL CONTINUE TO DO THEM. SO GOING TO THE BOTTOM, YOU HAVE A $27.9, NEARLY $28 MILLION CAPITAL PROGRAM. $4.6 OF THAT IS NEW MONEY, CASH. JUST UNDER $1 MILLION IS EXISTING, AND THEN $22 MILLION ON THE BOND. AND AGAIN, THESE ARE ALL REVENUE BONDS. NONE OF THIS TOUCHES YOUR GENERAL FUND OR YOUR TAX LEVY. YOUR GENERAL FUND NO LONGER COSIGNS THESE NOTES OR ANYTHING OF THAT NATURE. THEY STAND ON THEIR OWN. QUESTIONS? MR. GREEN. OKAY, SO GOING BACK TO YOUR RATE CORRESPONDING WITH THE FINANCIALS, WE HAVE, LOOKS LIKE WE'RE LOOKING AT $84 MILLION IN BONDS, $61 MILLION FOR WATER, $22 MILLION FOR WASTEWATER. DOES THE RATE, THE $0.65 INCREASE RATE AND THE 1% ON THE VOLUME, THAT PAYS FOR THE NEW DEBT AND EVERYTHING ELSE? IS THAT IN THEORY? IT DOES. WHEN WE ISSUE THE BONDS, THEY'RE PAID, THAT YOUR FIRST PAYMENT IS IN THE FOLLOWING YEAR. OKAY. SO YOU'VE GOT THE YEAR THAT YOU'RE BUILDING INTO IT TO GET YOU THERE, PLUS SOME, BUT... LOOK ON THE DEBT. SO WE, IN 2027, THE DEBT SERVICE IS $58 MILLION. THEN WE JUMP UP TO 2028, $62 MILLION. YOU'RE ON THE RATE MODEL? I'M ON THE RATE MODEL, YES, SIR. CAN WE GO BACK TO THAT? PAGE EIGHT. PAGE EIGHT. THERE WE GO. WHERE DOES THAT... WHERE IS THIS NEW DEBT REFLECTED? THIS NEW BOND? WHERE IS IT WHAT? WHERE IS IT REFLECTED? IN THE PROPOSED BUDGET. OKAY. AND THEN IT PICKS UP AND CHANGES AS YOU GO INTO THE FOLLOWING YEARS ON THOSE MODELS. OKAY. SO THAT'S WHERE... OKAY. SO I'LL GIVE YOU AN EXAMPLE. ON THE TOP OF THIS CHART, I'LL JUST DO THE DEBT SERVICE SIDE OF IT. OKAY. ON THE TOP OF THIS CHART, YOU DON'T SEE A NEW DEBT SERVICE PROGRAM IN 26 OR 27. YOU SEE IT IN 28. YEAH. SO YOU ISSUE IT IN 27. THAT FUNDS THE CAPITAL PROGRAM THAT WE LOOKED AT. AND YOUR FIRST PAYMENT ON THE NEW DEBT IS IN THE NEXT YEAR. OKAY. AND THEN ANOTHER QUESTION... AH, I SEE. OKAY. YEAH. THAT ANSWERS MY QUESTION. YEAH. AND THE REASON IT DIDN'T GO FROM 57 TO 57 PLUS 5.9 IS BECAUSE WE'RE ROLLING DEBT OFF AS WELL. RIGHT. WHAT DEBT ARE WE ROLLING OFF? WE CAN GET YOU A DEBT PROFILE ON THAT. WE DON'T HAVE ANY IN THE BUDGET, BUT MAYBE I'LL MENTION IT IF THE MAYOR IS OKAY WITH IT. WHEN WE MADE THE SWITCH TO WATER AND WASTEWATER BEING A RATED FUND, IT STANDS ON ITS OWN WITH ITS OWN CREDIT RATING AND ALL THAT STUFF. THAT ALLOWED US TO DO TWO THINGS. LIKE, IF YOU LOOK AT THE LAKE ALLEN-HENRY DEBT, ALL OF THAT SHOWED UP IN YOUR GENERAL FUND. GENERAL FUND NEVER PAID IT. TAXES NEVER PAID IT. BUT WATER AND WASTEWATER DIDN'T HAVE A CREDIT RATING, [01:10:02] SO THEY COULDN'T GET DEBT. SO, BASICALLY, THE GENERAL FUND WAS THE COSIGNER. THEY DIDN'T PAY IT, BUT IT'S ALL ON THEIR BOOKS. WHEN THIS BECAME A RATED FUND, IT STANDS ON ITS OWN, ITS OWN CREDIT RATING, ALL OF THAT. WE GOT TWO BIG BENEFITS FROM THAT. NUMBER ONE, IT ISSUES ITS OWN DEBT. IT'S REVENUE DEBT. SO, RATHER THAN USING A TAX PLEDGE AS A GUARANTEE, WE SAY, HERE ARE THE SYSTEM REVENUES. THAT'S WHAT THE RATIOS ARE WITH THE BOTTOM. SO, NEVER AGAIN WILL YOU HAVE WATER-WASTEWATER INSIDE YOUR GENERAL FUND. BUT NUMBER TWO, WE'VE JUST COME OUT OF A VERY, VERY FAVORABLE ENVIRONMENT TO DO REFUNDINGS, WHAT IN THE NORMAL WORLD WE CALL A REFINANCE. EVERY TIME WE HAVE HAD A WATER-WASTEWATER BOND COME UP THAT'S IN THE GENERAL FUND, WE HAVE REFUNDED IT AND PUSHED IT BACK OVER AS A REVENUE DEBT, WHICH ACTUALLY CAUSED YOUR GENERAL FUND DEBT TO START, YOU KNOW, DECLINING VERY RAPIDLY. WHEN WE DO REFUNDINGS, REGARDLESS OF WHAT FUND IT IS IN, WATER-WASTEWATER GENERAL FUND, WHATEVER, WHEN WE DO REFUNDINGS, WE NEVER EXTEND THE TERM. SO, IF WE HAD A 20-YEAR BOND AND WE REFINANCED IT AT THE 11TH YEAR, IT GOES BACK IN AS A NINE-YEAR BOND. WE NEVER EXTEND THE TERM. AND TRULY, THAT'S HOW WE GENERATE THE NET PRESENT VALUE SAVINGS FOR DOING THAT. AND WE'VE SAVED SEVERAL MILLION DOLLARS. CAN'T DO IT RIGHT NOW. THE RATE ENVIRONMENT'S NOT WHERE IT NEEDS TO BE. BUT WE HAD A LOT OF THAT WE GOT DONE. OKAY, ARE WE READY FOR THE NEXT? OKAY, THESE ARE SMALL FEES. THESE ARE NOT YOUR MONTHLY WATER BILL. WE'VE GOT A COUPLE OF ONES THAT WE'D LIKE TO PUT UP AS KIND OF A NEWER FEE. THE METER INSTALLATION INITIAL SERVICE FEE, WE'VE BEEN DOING THAT WITHOUT AN INDEPENDENT FEE, AND THAT LOAD REALLY NEEDS TO AT LEAST PAY FOR PART OF ITSELF, $40. SUBSEQUENT SERVICE FEE, IT IS NOT UNUSUAL THAT WE CAN SET A METER FOR SOMEBODY AND BEFORE SERVICE BEGINS, BEFORE SOMEBODY LIVES IN THAT HOUSE OR SOMEBODY HAS OCCUPIED THAT COMMERCIAL PROPERTY, THAT IT GETS DAMAGED, TORN UP, AND WE HAVE TO GO OUT AND DO IT ALL OVER AGAIN AND OFTEN REPAIR DAMAGE THAT WAS CAUSED AS PART OF IT. IF WE'RE GOING TO HAVE TO DO A CALLBACK BASICALLY ON THAT, WE'D LIKE TO ASK FOR A $100 FEE. FIRE HYDRANT FEE INITIAL, FIRE HYDRANT FEE SUBSEQUENT, SAME THING. OKAY? WE HAVE SOME RENTS THAT WE COLLECT THROUGH HERE. IT'S NOT MAGIC. THIS IS ALL UP ON YOUR WATER TOWERS. YOU CAN SEE TWO OF THOSE COMING OUT IN THE NEW YEAR, AND THEN YOU SEE SOME CHANGES, SOME INCREASES. WE'RE ABLE TO UP WHAT WE CHARGE THE PRIVATE TO USE THAT ON THE REST. IT DOES NOT BRING US BACK TO NET ZERO, BUT IT HELPS. DOING RECONNECTS AFTER HOURS OR ON A HOLIDAY, WE'VE CHARGED $55 FOR THAT FOR A NUMBER OF YEARS. OUR COSTS HAVE GONE UP. WE'RE ASKING FOR JUST A $5 INCREASE IN THAT CHARGE. YOUR WATER METER SET FEES, AND YOU'RE GOING TO SEE THIS THROUGHOUT. THESE ARE FEES THAT BY ORDINANCE ADJUST EACH YEAR BASED ON COST. SO THIS IS WHAT THE CALCULATED CHANGES TO THOSE ARE. I'LL SWITCH TO THE NEXT PAGE. YOU'LL SEE SOME MORE. MOVE OVER. HERE WE GO. WE'VE GOT THE SEWER LINE CLEANOUTS. ALSO FEES THAT HAVE NOT CHANGED IN A NUMBER OF YEARS. YOU ACTUALLY HAVE A LEASE WITH AN ARCHERY CLUB. IT'S OUT AT YOUR CITY FARM. THAT LEASE AGREEMENT HAS A SMALL ESCALATOR, AND I MEAN SMALL, $73 A YEAR. THE BLAKE PETRIE LEASE AND THE CURRY LAYMAN LEASE, THOSE ARE SMALL PIECES OF FARM AND OR GRASSLAND THAT WE OWN THAT SOMEBODY PAYS TO USE. PRO RATA CHARGES. THIS IS WHAT TIES UP WITH WHAT YOU WERE SEEING ON WATER. THOSE BY ORDINANCE ADJUST AS WELL. THESE ARE THE CALCULATED ADJUSTMENTS THIS YEAR. CARRIES OVER. THERE'S A VERY LONG LIST OF THESE. MOVING IN. AND THAT'LL END WATER-WASTEWATER. QUESTIONS FOR THE MOMENT ON WATER-WASTEWATER. ON THE PAGE 15, SO I THINK YOU EXPLAINED THIS, BUT YOUR FEE FOR WATER METER SET FEES, THAT'S BASED ON YOUR ACTUAL KIND [01:15:01] OF EXPENSES OF DOING THAT. AND SO YOU'VE ADJUSTED THOSE. LIKE SOME WENT UP, SOME WENT DOWN QUITE A BIT, BUT THAT'S... THERE'S A FORMULA FOR THOSE. THERE'S A FORMULA BASED ON THE COST OF DOING THAT. YES, SIR. AND YOU TRY TO ADJUST IT ACCORDING TO THAT. CORRECT. OKAY. THOSE WERE ACTUALLY ONES THAT WERE SET A NUMBER OF YEARS AGO THAT ARE BASICALLY THEY'RE AT COST RECOVERY. SO WITH COST CHANGES, WHETHER IT'S UP OR DOWN, THESE CHANGE. GOOD. OKAY. DANIEL, ARE YOU HERE? YAY. MAYOR AND COUNCIL, THIS IS DANIEL GARCIA. HE IS GOING TO PRESENT TO YOU THE LP&L BUDGET. CURTIS, YOU WANT TO SWITCH IT TO THAT COMPUTER? THANK YOU. THANK YOU. THANK YOU, JARRETT. GOOD AFTERNOON, MAYOR AND COUNCIL. SO THE PROPOSED BUDGET FOR 26-27... THERE WE GO. ...CONTINUES LP&L'S COMMITMENT TO PROVIDING RELIABLE AND ELECTRIC DELIVERY SERVICE WHILE MAINTAINING COMPETITIVE RATES AND INVESTING IN LONG-TERM. IN THE LONG-TERM RELIABILITY OF OUR SYSTEM. SO THIS BUDGET WAS REVIEWED BY THE ELECTRIC UTILITY BOARD AND IN JULY AND IS BEING PRESENTED TO YOU IN YOUR CONSIDERATION FOR FINAL APPROVAL. STARTING WITH OUR REVENUES, INTEREST EARNINGS INCREASED 1.2 MILLION, REFLECTING HIGHER EXPECTED YIELDS IN THE INVESTMENT PORTFOLIO. OUR DISTRIBUTION SYSTEM REVENUE DECREASED 3.1 MILLION DUE TO LOWER ANTICIPATED LOAD CONSUMPTION. AND OUR TCOS REVENUES, WHICH IS THE TRANSMISSION COST OF SERVICE, DECREASED 0.2 MILLION. THESE TCOS RATE FILING INCORPORATES ALL THE TRANSMISSION ASSETS RELATED TO THE ERCOT INTEGRATION AND IS SUBJECT TO PUC APPROVAL. OUR FRANCHISE FEES DECREASED 0.1 MILLION DUE TO A SLIGHT DECREASE IN THE PROJECTED LOAD. AND THE ERCOT HOLD HARMLESS CREDIT, WHICH IS AN OFFSET TO THOSE TCOS REVENUES, REFLECTS LP&L'S REQUIRED PAYMENTS UNDER THE ERCOT INTEGRATION ORDER. AND THESE PAYMENTS BEGAN FEBRUARY 22 AND WILL END IN JANUARY 2027. SO THE DECREASE IS DUE TO THAT HOLD HARMLESS CREDIT ESSENTIALLY FALLING OFF IN JANUARY 2027. OTHER REVENUES INCREASED 0.5 MILLION PRIMARILY DUE TO AN INCREASE FOR PAYMENT REQUESTS FOR INTERCONNECTION STUDIES OFFSET BY A ONE-TIME REVENUE FOR INSURANCE PROCEEDS IN 25-26. NEXT IS OUR EXPENSE SUMMARY. COMPENSATION BENEFITS INCREASED 0.8 MILLION. THIS IS MAINLY DUE TO A NET INCREASE OF THREE FTES AND ANTICIPATED 3% COLA ADJUSTMENT AND HIGHER HEALTH BENEFITS COSTS. OTHER MAINTENANCE OPERATIONS INCREASED 1.2 MILLION. THIS IS DUE TO HIGHER SAFETY SUPPLY COSTS, INCREASED MAINTENANCE IN OUR OVERHEAD AND UNDERGROUND LINES, VEHICLE MAINTENANCE COSTS, AND THEN THOSE HIGHER PROFESSIONAL SERVICES COSTS RELATED TO THE INTEGRATION STUDIES THAT WERE REQUIRED TO DO. TRANSMISSION COSTS INCREASED 2.9 MILLION. THESE ARE DUE TO HIGHER ERCOT TRANSMISSION RATES ASSOCIATED WITH THE ERCOT SYSTEM LOAD GROWTH. THE CITY OF LUBBOCK UTILITY REIMBURSEMENT INCREASED 0.5 MILLION WHICH IS AN OFFSET TO THE EXPENSE DUE TO AN INCREASE IN BUSINESS OFFICE ALLOCATION BASED UPON THE AGREED REIMBURSEMENT METHODOLOGY. OUR DEBT SERVICE DECREASED 0.8 MILLION DUE TO LOWER PRINCIPAL AND INTEREST PAYMENTS. OUR FFE AND PILOT DECREASED SLIGHTLY DUE TO THE SLIGHTLY LOWER PROJECTED LOAD. AND OUR TRANSFER TO CAPITAL INCREASED 15.2 MILLION. THIS IS DUE TO INCREASED FUNDING FOR OUR CRITICAL INFRASTRUCTURE PROJECTS INCLUDING THE SUBSTATION UPGRADES, OPERATION SYSTEM UPGRADES, CAPACITY UPGRADES, OUR NEW COLLIER SUBSTATION, AND THE MASTENGALE STATION DEMOLITION. I THINK WE ALL WANT TO KNOW WHAT A POSTAGE STAMP RATE IS FOR ERCOT. RIGHT. SO THIS IS THE RATE SET BY THE PUC WHERE ESSENTIALLY OTHER UTILITIES THAT ARE TRANSMITTING THEIR LOAD ACROSS OUR SYSTEM. IT'S THE RATE THAT THEY'RE REQUIRED TO PAY US. AND SO THAT'S WHAT A POSTAGE STAMP. ONCE THEY SET THOSE RATES, THESE ARE FORECASTED RATES BASED ON THAT METHODOLOGY BUT THEY'LL COME OUT EVERY YEAR AND THEY'LL SET THE RATE FOR THOSE UTILITIES TO PAY. AND WE'VE GOT TO PAY TO THEM JUST LIKE THEY HAVE TO PAY US. OKAY. I FIGURED THAT WAS YOUR QUESTION, MR. COLLINS. OR DO YOU HAVE ANOTHER ONE? SO JUST SO YOU KNOW, WHEN WE USE THE PHRASE POSTAGE STAMP... YEAH. SORRY. SURE. GO AHEAD. SO POSTAGE STAMP JUST MEANS IT'S UNIFORM [01:20:01] ACROSS THE STATE. EVERYBODY GETS THE SAME RATE. SO IT'S JUST LIKE A POSTAGE STAMP. NO MATTER WHETHER YOU'RE MAILING THAT LETTER ACROSS THE STREET OR ACROSS THE COUNTRY, IT'S THE SAME THING. THAT'S WHY THEY USE THE PHRASE POSTAGE STAMP. OKAY. GOT YOU. MAYOR, TO ADD TO THAT QUESTION, THAT LINE OF QUESTION ABOUT POSTAGE STAMP, SO ESSENTIALLY WHAT COULD HAPPEN IS GROWTH IN ANOTHER CITY INCREASES COST TO ERCOT. IT'S SHARED THROUGHOUT THE SYSTEM AND SO IT BECOMES A RATE INCREASE LOCALLY AS WELL. YES, SIR. IS THAT CORRECT? YES, SIR. OKAY. SO YOU CAN'T CONTROL IT, WE CAN'T CONTROL IT. BUT ACTIVITIES THAT ARE GOING ON ALL ACROSS THE STATE OF TEXAS ARE INCREASING RATES WITHIN LPNL LOCALLY. YES, SIR. AND WHEN WE INVEST IN OUR INFRASTRUCTURE AS WELL, OUR RATES AND OUR REVENUE WILL BENEFIT FROM THAT AS WELL. YEAH. YES, SIR. VERY GOOD. THANK YOU. ALL RIGHT. ALL RIGHT. ANYTHING ELSE? I SEE THAT. OKAY. ALL RIGHT. MOVING ON TO OUR FINANCIAL MODEL. I THINK IT INCORPORATES THE FOLLOWING ASSUMPTIONS. OUR TCOS REVENUES ARE BUDGETED AND INCLUDE AN ANTICIPATION INCREASE FOR THE COMPLETION OF THE WEST LOOP PROJECT. SO IF YOU SEE IN FISCAL YEAR 2930, THERE IS A JUMP IN THE TCOS REVENUES. THAT IS A REFLECTION OF THE ANTICIPATED WEST LOOP PROJECT COMING ONLINE. IT DOES NOT INCLUDE ANY NEW RATE REVENUE. IT INCLUDES THE LAST YEAR OF THE WHOLE HARMLESS PAYMENT AND THE PRINCIPAL AND INTEREST FOR THE DEBT SERVICE RELATED TO THE WEST LOOP PROJECT. AND IT ALSO MAINTAINS AN EXCESS RESERVE MINIMUM OF $4.8 MILLION. THIS MODEL DOES NOT INCLUDE THE SALE OF OUR TIGHT COOK PRODUCTION PLANT AND IT DOES NOT INCLUDE THE AWARD OF ANY GRANTS THAT WE DO ANTICIPATE. AND LASTLY, IT INCORPORATES SIGNIFICANT CAPITAL IMPROVEMENTS AS 82% OF OUR CAPITAL PROGRAM IS FUNDED WITH CASH. ANY QUESTIONS? SO THE HOLD HARMLESS CREDIT, JUST EXPLAIN THAT AGAIN FOR US. RIGHT. IT'S $22 MILLION IN THIS YEAR'S BUDGET AND IT IS $7.3 MILLION IN YOUR PROPOSED BUDGET. YES, SIR. SO THEY STARTED FEBRUARY OF 22 AND THIS IS A FIVE-YEAR, $22 ANNUAL MILLION-A-YEAR REQUIREMENT, TOTALLY $102 MILLION. AND SO THE ENDING, STARTING FEBRUARY, ENDING IN JANUARY, $22 MILLION ANNUALLY. IT'S JUST, IT FALLS WITHIN THE FIRST FOUR MONTHS OF THE YEAR. SO THAT REQUIREMENT IS ONLY ONE-THIRD RATHER THAN THE FULL 12 MONTHS. ALL RIGHT. ANY OTHER QUESTIONS? OH, COUNCILWOMAN MARTINEZ-GARCIA. YES. THE THAI COOKS SELL BECAUSE WE'RE STILL, WE HAVE A WAITING PERIOD, RIGHT? IS THAT WHY IT'S NOT BEING INCLUDED IN THIS? CORRECT. YEAH, WE HAVE AN AGREEMENT IN PLACE, BUT OF COURSE, YOU KNOW, ALL SALES AREN'T FINAL UNTIL THEY ACTUALLY HAPPEN. SO WE DIDN'T WANT TO ASSUME THAT SALE WOULD HAPPEN IN THIS BUDGET AND UTILIZE THOSE FUNDS AND IF WE WEREN'T ABLE TO PROCURE THEM. AND ONCE WE DO RECEIVE, I BELIEVE IT'S $9 MILLION? YES, MA'AM. WHERE WILL THAT GO IN? SO THAT WOULD GO TO HELP OFFSET THOSE CAPITAL IMPROVEMENT COSTS LIKE THE MASSINGALE DEMINITION, THOSE OTHER ONE-TIME LARGE PROJECTS THAT WE HAVE IN HERE. OKAY. THANK YOU. YES, MA'AM. MR. GREEN. SO ON THE CAPITAL IMPROVEMENTS, SO YOU'RE PUTTING THE HOLD HARMLESS, BASICALLY, WE'RE GETTING BACK $14 MILLION THIS YEAR OR NOT PAYING $14 MILLION. CORRECT. SO, AND THE CAPITAL PROGRAM WENT FROM $28 MILLION TO $43 MILLION. IS THAT CORRECT? AGAIN, TELL ME WHERE EXACTLY THOSE, WHAT'S INCLUDED IN THAT CAPITAL PROGRAM? YES, SIR. SORRY, I MIGHT HAVE MISSED THAT. NO, SIR. SO THAT INCLUDES OUR SUBSTATION UPGRADES. THESE ARE ALL CRITICAL NEED PROJECTS THAT WE'VE POSTPONED FOR THE LAST FIVE YEARS DUE TO HAVING THAT CREDIT. AND SO NOW THAT WE'RE ABLE TO FUND THESE PROJECTS, WE HAVE $3.6 MILLION GOING TO OUR ERSKINE PROJECT, $4 MILLION IN THE OPERATION SYSTEM UPGRADES, $3.6 MILLION GOING TOWARDS OUR COLLIER SUBSTATION OR $7.6 MILLION FOR THE COLLIER SUBSTATION. AND THEN, OF COURSE, THAT MASSENGILL DEMOLITION PROJECT IS QUOTED AT $6.2 MILLION. OKAY. IS IT POSSIBLE FOR YOU TO GIVE US A BREAKDOWN OF THAT, PROVIDE US WITH THAT? YES, SIR. OKAY. I WOULD LIKE TO HAVE THAT. YES, SIR. IT IS IN YOUR BUDGET BOOKS, I BELIEVE. IS IT IN OUR BUDGET BOOK? OKAY. I HAVEN'T BEEN FLIPPING THROUGH THOSE PAGES. WHAT PAGE WOULD THAT BE ON? IT'S IN YOUR VOLUME TWO, I BELIEVE JOE SAID, BUT I'M NOT SURE EXACTLY. [01:25:01] I HAVEN'T GOT A COPY OF THAT, SO I'M NOT SURE WHAT PAGE NUMBER. STARTS ON 121 OF VOLUME TWO. OH, YEAH, ON THE OTHER. YEAH, I DON'T. OKAY. I DON'T HAVE TO HAVE IT IN HERE. OKAY. ALL RIGHT. OKAY. ALL RIGHT. THANK YOU. THANK YOU. JUST TO MAKE A NOTE WHILE WE'RE SWITCHING BACK OVER, THE CAPITAL PROJECTS THAT I WENT OVER EARLIER FOR WATER AND WASTEWATER, THEY'RE ALSO IN VOLUME TWO, AND THERE'S BOTH THE SUMMARY SHEET AND YOU'LL SEE AT LEAST A ONE-PAGE, MOST OF THEM ARE A TWO-PAGE SUMMARY ON EACH OF THOSE CAPITAL PROJECTS. MAYOR, WOULD YOU LIKE US TO MOVE INTO SOLID WASTE? YES. OKAY. SO HERE IS KIND OF THE TEE-UP TO THIS. COUNCIL, WE DISCUSSED DURING YOUR PRIORITIES MEETING TAKING SOLID WASTE OUT OF THE GENERAL FUND AND REESTABLISHING IT AS AN ENTERPRISE FUND. SO IT IS IN YOUR ENTERPRISE BOOK. THERE IT IS. IT ALSO MEANS THAT WHEN YOU SEE THE GENERAL FUND, WE HAVE GONE THROUGH AND NETTED OUT ALL OF THE SOLID WASTE STUFF THAT YOU CAN SO THAT YOUR YEAR-OVER-YEAR COMPARISONS WILL BE TRUE. SO EVERYTHING FOR SOLID WASTE IS OVER HERE. IT'S GOING TO LOOK LIKE IT'S NEW, BUT IT'S JUST BECAUSE THE PRIOR YEARS WERE INSIDE THE GENERAL FUND. WE DID HAVE A REQUEST TO LOOK AND SEE, AS WE SET THIS UP, SINCE IT'S AN ENTERPRISE FUND, IT WILL HAVE BOTH A PILOT AND AN FFE ASSOCIATED WITH IT. COULD WE DO THAT BY PHASING INTO IT TO GET THERE RATHER THAN PUTTING IT ALL IN IN ONE YEAR? AND WE HAVE BEEN ABLE TO DO THAT. SO WHAT'S IN THIS BUDGET YEAR IS 50%. IT'S ONE HALF OF EACH. AND THEN WE PUT INTO THE MODEL THAT YOU'LL SEE THAT SECOND 50% IN THE FOLLOWING YEAR. AND THE MODEL IS GOING TO TAKE A LITTLE MORE DISCUSSION BECAUSE IT'S BRAND NEW, BUT WE'LL GET OVER THERE IN JUST A MINUTE. SO IF ALL THAT MAKES SENSE. ALL RIGHT. COUNCIL MEMBER HARRIS, I THINK WE'RE ON PAGE 24 OF YOUR HANDOUT IF YOU WANT TO LOOK AT THAT. OKAY. SO TOP LINE, REVENUE INCREASE IS DUE TO THE RATE INCREASE THAT WE'VE GOT PROPOSED IN TIPPING RESIDENTIAL AND COMMERCIAL FEES. SO TIPPING, IT REFERS TO THE LANDFILL. THAT IS THE STATE'S WORD FOR THE PER TON CHARGE FOR TRASH BEING BROUGHT INTO THE LANDFILL, TIPPING FEES. I'LL COVER THAT IN MORE DETAIL IN A MOMENT. OPERATING EXPENSE, COMPENSATION AND BENEFITS ARE DECREASING SLIGHTLY. WE DO HAVE A SLIGHT INCREASE IN TEMPORARY STAFF PAY AND, OF COURSE, THE HEALTH AND DENTAL PREMIUMS. THAT'S IN EVERY FUND AND IT'S THE SAME. IT'S BASED ON PEOPLE. OUR OFFICE CHEMICALS AND, BELIEVE IT OR NOT, FUEL CHARGES ARE GOING TO GO DOWN A BIT. MAINTENANCE DECREASE IN THE VEHICLES. THIS IS SPECIFICALLY REFERRING TO THE COLLECTION TRUCKS, WHAT WE CALL TRASH TRUCKS. COUNCIL, REMEMBER, WE'VE BEEN SOMEWHAT AGGRESSIVE WITH BUYING NEW ONES OF THOSE. COVID REALLY HAMMERED THAT PROJECT, NOT BECAUSE WE DIDN'T QUIT BUYING THEM. IT WAS JUST TAKING THREE TO FOUR YEARS TO ACTUALLY GET THEM AFTER WE HAD PURCHASED THEM. THAT LOG JAM HAS CLEARED UP. THE PRICE OF THOSE TRUCKS HAS DROPPED A LITTLE. IT'S STILL WELL ABOVE WHAT IT USED TO BE, BUT IT'S DROPPED A LITTLE. AND WE'RE DOING THAT BECAUSE WHEN THE TRANSFER STATION IS OPEN, YOU WILL GO FROM ROUGHLY 48 ROUTES THAT WE HAVE TO COVER AND DRIVE TODAY, FOUR DAYS A WEEK MINIMUM, TO SOMETHING MORE 32 TO 35 ROUTES. THE PLAN BEHIND ALL OF THAT IS TO MOVE FROM THE 48, LET'S CALL IT 35 FOR TODAY, BUT TO MOVE FROM 48 TO 35 AND CHOP OFF THE OLDEST CHUNK OF THE FLEET, LEAVING US WITH A BUNCH [01:30:01] OF MUCH NEWER TRUCKS. THESE THINGS ARE MAINTENANCE INTENSIVE. THEY'RE MAINTENANCE HOGS. BUT AS WE'VE BEEN ABLE TO REDUCE THE AVERAGE AGE OF THAT FLEET, WE'RE REDUCING MAINTENANCE. AND WE'LL GET A SECOND BENEFIT FROM THAT WHEN WE QUIT HAVING TO RUN QUITE SO MANY OF THEM. PROFESSIONAL SERVICES IS DOWN. THIS IS PRIMARILY OUR CONTRACT WITH THE LUBBOCK COUNTY SHERIFF'S OFFICES TO PROVIDE INMATE LABOR THAT HELPS US KEEP THE LANDFILL CLEAN AND IN COMPLIANCE WITH THE TEXAS COMMISSION ON ENVIRONMENTAL QUALITY, TCEQ REGULATIONS. YOU WILL SEE, IT LOOKS LIKE THE FUND LEVEL EXPENSES ARE UP DUE TO THE DEBT SERVICE PAYMENT AND THE TRANSFER FOR THE VEHICLES. THOSE ARE NOT NEW CHARGES. THEY WERE INSIDE THE GENERAL FUND LAST YEAR. THEY'RE STANDING ON THEIR OWN THIS YEAR. SO ON THE RIGHT AT THE TOP, WITH THE PROPOSED RATE INCREASE, WE'RE LOOKING AT ABOUT $32.2 MILLION IN FUNDING. AGAIN, YOUR DEPARTMENT LEVEL EXPENSES CARRY DOWN, AND THEN YOUR FUND LEVEL EXPENSES, AND THIS ONE IS COMING IN SLIGHTLY OVER, SO IT'S A BALANCED BUDGET. I'LL GO INTO SOME MORE DETAIL IF YOU'D LIKE. SO HERE IS THE RATE MODEL. YOU HAVE YOUR LANDFILL FEES, ROUGHLY $8 MILLION, RECYCLING REVENUES OF $200,000, AND REVENUE FROM DEPARTMENT OPERATIONS. THAT'S THE MONTHLY SOLID WASTE BILL, $24 MILLION. TOTAL FUNDING SOURCES OF $32.2. YOU SEE THE STANDARD LINE ITEMS THAT WE'VE TALKED ABOUT ON OTHERS. GO DOWN, YOU HAVE THE TRANSFER TO FLEET MAINTENANCE, CIP, VEHICLES. TRANSFER TO LPNL, CITY OF LUBBOCK UTILITIES. THE SMALL PORTION OF CIS IS THE CUSTOMER INFORMATION SYSTEM. IT'S PART OF THE BILLING OFFICE AT LPNL. AND THEN YOU GET TO THE FRANCHISE FEE EQUIVALENT AND THE PILOT, $800,000 AND $213,000, RESPECTIVELY. DEBT SERVICE OF $3.7 MILLION. EVEN IN THE GENERAL FUND, THAT WAS BEING PAID BY SOLID WASTE REVENUES, BUT AGAIN, NOW IT'S STANDING OUT ON ITS OWN. AND THEN VEHICLE AND EQUIPMENT DEBT SERVICE. THE $3.7 MILLION IS ASSOCIATED WITH YOUR TRANSFER STATION CONSTRUCTION, PRIMARILY. AND YOUR VEHICLE AND EQUIPMENT DEBT SERVICE IS TRASH TRUCKS AND SOME OF THE LITERAL MILLION-DOLLAR EQUIPMENT THAT'S OUT AT THE LANDFILL. SO WHAT I'D LIKE TO POINT OUT ON THIS, SINCE IT'S NOW A STANDALONE FUND, IT HAS THIS RATE MODEL, AND THE METRIC THAT JOE AND I HAVE REALLY BEEN WORKING ON, STARTING FROM ZERO, WHERE DOES IT STAND? SO LOOK AT THAT REVENUE OVER OR UNDER EXPENDITURE LINE. IT'S ABOUT RIGHT HERE. SO FOR FISCAL 27, IT'S $386,000 TO THE GOOD. THAT IS A TINY FRACTION OF THE TOTALITY OF THIS FUND. BUT IF YOU JUMP FORWARD TWO YEARS WITH THE MODEL THAT'S BEEN BUILT, YOU SEE THAT FUND TRULY ACCUMULATING WHAT WILL BE ITS OWN RESERVE BUCKET. SO IT'S STARTING SLOW, BUT IT IS NOT STARTING NEGATIVE. OKAY? HAD WE PUT ALL OF THE PILOT AND FRANCHISE IN, IT WOULD HAVE BEEN. AND WE PLAYED WITH IT WITH THIRDS, AND WE TRIED A LOT OF DIFFERENT MODELS. IT'S THE HALF AND HALF WORKS, AND IT KEEPS YOUR FUTURE FUND MODEL POSITIVE AND ACTUALLY STARTS ACCRUING WHAT IT NEEDS TO ACCRUE RELATIVELY QUICKLY. ALL RIGHT? SO LET ME GO TO THE BOTTOM, YOUR FEES. PROBABLY THE ONE THAT'S EASIEST TO TALK ABOUT IS THE RESIDENTIAL RATE, KIND OF THERE IN THE MIDDLE AT $22.50. THAT'S $2 INCREASE IS WHAT THAT IS. THERE ARE ALSO INCREASES FOR COMMERCIAL. THOSE ARE ALL DONE PRO RATA AGAINST RESIDENTIAL. THAT'S HOW THE SOLID WASTE ORDINANCE HAS BEEN SET UP FOR A LONG TIME. SO THE BIGGER YOUR SERVICE LEVEL IS, THE BIGGER YOUR INCREASE IS. IT'S NOT JUST $2 ACROSS THE BOARD. EVERYTHING'S PEGGED OUT OF RESIDENTIAL. LANDFILL. EXPLAIN THE FEES HERE. TIPPING FEE, WTRDF. THAT IS WEST TEXAS REGIONAL DISPOSAL FACILITY. THAT IS YOUR LARGE LANDFILL THAT IS WEST OF ABERNATHY. AND WHEN WE SAY REGIONAL, IT MEANS WHAT IT SAYS. ABOUT HALF OF THE TRASH THAT GOES IN THERE IN A GIVEN YEAR CAME FROM LUBBOCK, AND ABOUT HALF GOES FROM EVERYWHERE ELSE. TIPPING FEE PER SPECIAL, PER TON FOR SPECIAL WASTE. CAREFUL HOW I SAY THIS. THIS IS NOT HAZARDOUS WASTE, BUT IT IS WASTE THAT HAS TO BE TREATED IN LANDFILL DIFFERENTLY THAN JUST NORMAL HOUSEHOLD WASTE. ALL RIGHT. TIPPING FEE, CALICHE CANYON. CALICHE CANYON IS THE LEGAL NAME OF WHAT WE CALL LANDFILL 69. [01:35:02] IT'S UP ON NORTH AVENUE P OR DIFFERENT MAPS WILL SHOW YOU DIFFERENT ONES. THAT IS THE LANDFILL THAT EXISTED PRIOR TO BUILDING THE BIG ONE AT ABERNATHY. IT IS DOWN TO ITS LAST CELL, SO IT'S NEARING KIND OF THE END OF ITS LIFE. SINCE ABERNATHY OPENED, THE BIG ONE OPENED, THAT ONE OPERATES FOR WHAT THEY CALL CONSTRUCTION AND DEMOLITION, CND, WASTE. WE DO NOT PUT HOUSEHOLD WASTE INTO IT. SO IT'S BASICALLY INERT STUFF THAT GOES IN THERE. WE NEED TO CLOSE THAT LANDFILL DOWN. IT'S DOING TWO THINGS RIGHT NOW. IT HAS THAT CELL OPEN. IF YOU HAVE QUALIFYING TRASH, YOU CAN BRING IT OUT THERE. IT'S OBVIOUSLY CLOSER THAN THE BIG ONE AT ABERNATHY. WE KNOW THAT. BUT SECOND, WE RUN A NO-CHARGE TRANSFER SERVICE OUT OF THERE. PEOPLE CAN BRING STUFF OUT FROM TOWN, I'M TALKING ABOUT RESIDENTS, AND UNLOAD IT OUT THERE, AND WE'LL PICK IT UP AND CARRY IT TO ABERNATHY. AND WE CAN'T DO THAT FOR $20.50 A MONTH, AND WE CAN'T DO IT FOR $22.50 A MONTH. IT'S A SERVICE. I'M GLAD WE HAVE PROVIDED IT. WE'RE NEARING THE END. SO WE'RE GOING TO WORK PRETTY AGGRESSIVELY OVER THE NEXT FISCAL YEAR, SO OCTOBER 27 FORWARD, TO ENCOURAGE THIRD PARTIES TO BRING STUFF IN THERE THAT'S APPROPRIATE AND FOR US TO TAKE EVERYTHING WE CAN FROM THE CITY, WHETHER THAT'S THROUGH CLEANUPS OR WHATEVER ELSE IT MAY BE OUT THERE, SUCH THAT WHEN WE ROLL INTO 28, FISCAL YEAR 28, YOU'LL START THE CLOSURE PROCESS. IT'S A MULTI-YEAR PROCESS. I'LL STILL HAVE TO HAVE SOME STAFF OUT THERE, BUT NOT WHAT I HAVE TODAY. I WILL NOT HAVE TO HAVE BULLDOZERS AND COMPACTORS AND ALL OF THAT EXTREMELY EXPENSIVE EQUIPMENT OUT THERE. SO JUST KNOW THAT I'M NOT DOING ANYTHING TO IT THIS YEAR, BUT IT'S KIND OF RUNNING OUT OF ITS END OF LIFE. CLOSING A LANDFILL IS EXPENSIVE, BUT LONG-TERM IT SAVES YOU MONEY BECAUSE YOU'RE NOT OPERATING AND MAINTAINING IT. MAKE SENSE? ALL RIGHT. OKAY. ALL RIGHT. CAPITAL, SO YOU WILL HAVE THE FINAL PERMIT IN HAND BY THE END OF THIS FISCAL YEAR FOR YOUR NEW TRANSFER STATION. SO YOU'LL SEE HERE AND YOU'LL SEE IN ANOTHER FUND SOME DOLLARS THAT ARE ASSOCIATED WITH FINISHING THAT PROJECT OUT. WE ANTICIPATE BIDS IN FRONT OF THE CITY COUNCIL BY JANUARY FOR YOU TO AWARD CONSTRUCTION, AND THEN OFF IT GOES TO THE RACES. WHAT YOU'RE GOING TO SEE IN THE OTHER FUNDS IS SOME OF THE EQUIPMENT WE NEED TO RUN IT AND BUILD THE FUELING STATION OUT THERE. BECAUSE REMEMBER TODAY, YOU DON'T OWN A FUELING SITE THAT IS WEST OF AVENUE PEAK. SO THIS WILL BE FOR EVERYBODY, EVERYBODY AT THE CITY, BUT WE'LL RUN IT IN AS PART OF THE TRANSFER STATION PROJECT. SO THAT'S THE BIG PIECE OF THE CAPITAL THAT'S NOT VEHICLES FOR THE SOLID WASTE FUND. ANY QUESTIONS ON THAT? ALL RIGHT. AND HERE YOU CAN SEE YOUR FEE CHANGES THAT WE ALREADY TALKED ABOUT THOSE. AGAIN, SOLID WASTE, GENERAL CONSUMER, METERED, RESIDENTIAL TODAY IS $20.50. PROPOSAL IS TO GO TO $22.50. THAT WILL FUND THE TRANSFER STATION GETTING GOING, THE EQUIPMENT. IT WILL CARRY ALL OF THE ASSOCIATED EXPENSES THAT YOU SEE OUT THERE TODAY. QUESTIONS ON THAT? MAYOR? MR. GREEN. I REMEMBER IN THE, I THINK WE WERE TALKING ABOUT, OR YOU GUYS WERE TALKING ABOUT IN THE PRIORITY SESSION, THAT LOOKING AT A $1 INCREASE IN RESIDENTIAL, AM I REMEMBERING THAT RIGHT? I THOUGHT WE WERE AT $1.50. OKAY. IT MAY HAVE BEEN $1. YOU'RE RECOMMENDING A $2. YES, SIR. AT THIS POINT. AND I KNOW THE TRANSFER STATION, GOING BACK, FILL ME IN ON HISTORY A LITTLE BIT, TRANSFER STATION WAS AN IDEA TO LOWER, EVENTUALLY LOWER, OF COURSE, THE COST ASSOCIATED WITH IT RIGHT NOW WE'RE PAYING FOR. DO YOU ANTICIPATE IN THE FUTURE RATE DECREASE BECAUSE OF THE TRANSFER STATION OR TO HOLD STEADY? I WOULD SAY THAT WE'RE GOING TO GAIN A LOT OF EFFICIENCY OUT OF THE TRANSFER STATION. WE ARE GOING TO REDUCE OUR COSTS. THE BEST WAY I WOULD CHARACTERIZE IT IS OVER TIME YOU'RE EITHER GOING TO GET TO HOLD STATIC ON RATES OR NOT HAVE TO INCREASE THEM LIKE YOU WOULD HAVE IF WE CONTINUED DOING IT THE WAY WE'RE DOING TODAY. ALL RIGHT. GOOD? [01:40:01] YEAH. WE'LL TAKE A... FIVE-MINUTE BREAK NOW? I'M SORRY? WE'LL TAKE A FIVE-MINUTE BREAK NOW? ABSOLUTELY. OKAY. ALL RIGHT. WE'RE ALL BACK OUT HERE. LET'S ALL TAKE OUR SEATS. AND WE WILL PROCEED BACK TO YOU, MR. CITY MANAGER. THANK YOU. OKAY. WE'RE GOING TO JUMP BACK IN, DO A FEW MORE OF THESE ENTERPRISE FUND BUDGETS. I THINK ALL OF OUR REPRESENTATIVES FROM YOUR VARIOUS COMPONENT UNITS ARE HERE, SO THE MAYOR AND I DISCUSSED POSSIBLY KIND OF WINDING UP ON ENTERPRISE AND THEN MOVING AND LETTING THE COMPONENT UNIT FOLKS TALK, AND THEN WE'LL GO BACK AND KIND OF GET BACK ON OUR REGULAR TRACK. SO LET'S KEEP UP WITH THE MAJOR ENTERPRISES. SO LET'S KEEP UP WITH THE MAJOR ENTERPRISES. NEXT ONE UP IS STORMWATER. SO HERE IS YOUR SUMMARY ACROSS STORMWATER. AGAIN, YOUR REVENUES ARE THE LEFT AND THE RIGHT, AND THEN YOU SEE THE DETAIL OF SUCH IN THE MIDDLE. INTEREST EARNINGS ARE SLIGHTLY DOWN HERE. AGAIN, YOU'RE GOING TO SEE THAT IN MOST OF THE FUNDS FOR THE YEARS. WE ARE APPROPRIATING AVAILABLE RESERVES FOR SOME CAPITAL PROJECTS. I'LL GO OVER THOSE IN A MOMENT. MOVE OVER TO EXPENSE. COMPENSATION IS UP SLIGHTLY DUE TO PERSONNEL. BENEFITS, OF COURSE, AGAIN, THE HEALTH, THE DENTAL. THAT IS THE SAME RATE ACROSS ALL OF THEM. MAINTENANCE AND OPERATIONS IS GOING UP LARGELY BECAUSE OF SOME HIGHER ENGINEERING SERVICE CHARGES, PARTIALLY OFFSET BY DECREASES IN VEHICLE MAINTENANCE. WE ARE CONTINUING TO ROLL THE DEBT SERVICE DOWN AND OFF. OUR FIXED ASSET VALUES ARE SLIGHTLY UP. THUS, PILOT FEES GO UP. AGAIN, THE INCREASED COST THAT WE PAY TO LP&L FOR DOING THE BILLING, AND THEN CASH-FUNDED CAPITAL, WHICH THAT'S WHERE YOUR AVAILABLE RESERVES ARE COMING IN. SO MOVING OVER TO THE RATE MODEL HERE. AND WE'LL START UP AT THE TOP. SEE OUR INTEREST REVENUES, THE REVENUE FROM GENERAL CONSUMER METERED. AGAIN, THAT'S THE BILLED CHARGE. THAT IS 95% OF IT. MISCELLANEOUS REVENUE FROM OPERATIONS. WE HAVE $23.4 MILLION COMING IN IN REVENUE. WE HAVE $23.6 MILLION GOING OUT AS EXPENSE. SO THIS ONE IS UNDER BY $270,000. THAT, OF COURSE, IS BALANCED WITH AVAILABLE RESERVES. OH, COME ON. THERE WE GO. RESERVE POLICY IS 20% OF REVENUE IN THIS FUND. SO YOU'VE GOT $13.7 MILLION IN CASH. YOU TAKE OUT YOUR 20% REQUIRED RESERVE, LEAVING $9 MILLION AVAILABLE, $9.1. YOU CAN SEE I'M GOING TO ROLL IT BACK OVER TO THE RIGHT SO WE CAN SEE THE OUT YEARS. AND IT STILL LOOKS GOOD. NOTE IN THE ROW RIGHT UNDERNEATH IT THE ACTUAL RATES. THERE ARE NO RATE CHANGES PROPOSED IN THIS ONE ALL THE WAY THROUGH THE ENTIRETY OF THE MODEL. SO WE'VE HAD PRIOR DISCUSSION, COUNCIL. REMEMBER, WHEN THE STORMWATER FUND WAS CREATED, IT WAS TO DO THOSE VERY, VERY LARGE PROJECTS TO KEEP THE FLOODING PRIMARILY OUT OF CENTRAL LUBBOCK. SO STORMWATER STARTED AS A DEBT SERVICE FUND. AND IT REALLY HAD VERY, VERY SMALL DOLLARS AVAILABLE TO IT FOR MAINTENANCE TO KIND OF KEEP UP WITH IT. IT PEAKED AT ABOUT 72% OF EVERY DOLLAR WENT TO GO TO DEBT SERVICE AND THE REST FOR MAINTENANCE. YOU'RE STARTING TO SEE THAT FLIP OVER, WHICH IS WHAT WE WANT IT TO DO. THERE WILL BE A FEW LARGER PROJECTS SCATTERED OUT IN THE FUTURE, BUT PRIMARILY THOSE ARE DONE. AND THEY'LL NEVER BE THE MAGNITUDE OF WHAT HAD TO BE DONE TO KIND OF PROTECT CENTRAL LUBBOCK. SO THIS ONE'S BEEN A LONG TIME COMING, BUT IT IS WORKING BASED ON THE LONG-TERM PLANS THAT WE PUT IN PLACE. OKAY, JUMP OVER INTO CAPITOL. GO DOWN TO TOPOGRAPHIC INFORMATION, ACQUISITION, AND DIGITAL ORTHOPHOTOGRAPHY. THIS IS OUR HIGHLY DETAILED AERIAL IMAGERY. WE USE IT IN STORMWATER. WE USE IT IN GIS. WE USE IT IN ENGINEERING. SO YOU'LL SEE ALL OF THOSE PAY A PIECE OF THAT AS WE ACQUIRE THAT NEW ONE. STORMWATER SYSTEM IMPROVEMENTS PLUS REHABILITATION AND MAINTENANCE. THESE ARE THE ONGOING MAINTENANCE ACCOUNTS FOR CAPITAL FOR STORMWATER. DRAINAGE IMPROVEMENTS FOR ARTERIALS. A LOT OF THIS IS GOING TO SUPPORT YOUR BOND PROJECTS. BECAUSE ESPECIALLY WHERE WE [01:45:01] HAVE A VERY SMALL, MAYBE A TWO-LANE STRIP PAVED ROAD THAT BECOMES A FIVE, THAT INHERENTLY BRINGS WITH IT A LOT OF DRAINAGE WORK THAT HAS TO BE DONE. AND THEN WE'VE GOT A LITTLE BIT OF WORK TO DO AT 4TH AND ELKHART. SO THIS YEAR WE'RE PROPOSING $3.875 MILLION IN STORMWATER CAPITAL. ROUGHLY $3.4 OF THAT IS NEW MONEY. AND THEN WE'VE BEEN ABLE TO CLEAN OUT A LITTLE OVER A HALF A MILLION DOLLARS FROM PRIOR PROJECTS THAT HAVE BEEN COMPLETED. LAKE ALLEN HENRY. YOU SEE THAT WE WILL HAVE SOME PROPOSED REVENUE INCREASES BASED ON OUR CAMPING FEES, OUR PERMIT FEES, OUR LIVESTOCK GRAZING. WE HAVE ENHANCED ALL OF OUR CAMPING AREA. WE NOW HAVE A, BASICALLY A SEWER DUMP FOR RVS. WE'VE GOT A KIOSK SYSTEM. HIGHLY, HIGHLY UTILIZED. AND WE'VE INCREASED SERVICE. WE'RE GOING TO SEE SOME PROPOSED INCREASES TO FEES. COMP AND BENEFIT DOWN SLIGHTLY. MAINTENANCE IS GOING UP IN VEHICLE MAINTENANCE HERE. NO MORE CREDIT CARD CHARGES. SO WE'RE ALMOST OUT OF OUR CHARGE-OUT SYSTEMS TO WHERE THE CITY HAS BEEN EATING THOSE FEES FOR USING THE CLEARINGHOUSES AND THE PROCESSING DEALS. COUNCIL MADE THAT A PRIORITY TWO YEARS AGO. WE'RE ALMOST DONE. SO SOME OF THESE WERE IN DIFFERENT CONTRACTS AND WE COULDN'T SWITCH THEM ALL AT THE SAME TIME. IT IS UP SLIGHTLY. THE WATER CHARGES ARE UP. THAT'S A TRANSFER TO THE WATER DEPARTMENT. AND THEN OUR TELECOM AND LIABILITY IS GOING DOWN. SO MOVING OVER, YOU CAN SEE OVER HERE ON THE RIGHT, THE ONE THAT IS IN A BOX IS YOUR PROPOSED BUDGET. WE'RE GOING TO SEE $804,000 IN REVENUE, $521,000 IN DEPARTMENT-LEVEL EXPENSES, FUND-LEVEL EXPENSES, COMPENSATION ADJUSTMENT, ADJUSTMENT, TAKING YOU TO A TOTAL EXPENSE OF $703,000. SO WE'RE TRYING TO START REPLENISHING THEIR RESERVE BUCKET BECAUSE THAT'S HOW WE DID A LOT OF THE IMPROVEMENTS THAT WE HAVE DONE. AND HERE IS THE FIRST PAGE ON THE FEES. THIS PAGE IS ENTIRELY YOUR VARIOUS HUNTING CHARGES. THIS IS FOR WHAT WE CALL SAM WALL WILDLIFE MITIGATION AREA. IT IS THE 2,000 ACRES BACK BEHIND THE DAM. THOSE HAVE NOT HELPED. WE ARE ALSO LOOKING AT WAYS TO INCREASE THE UTILIZATION ON THE HUNTING SIDE. IT'S ACTUALLY UNDERUTILIZED. AND WHEN THAT HAPPENS, WE HAVE TO SPEND MONEY ON THE OTHER SIDE TO DO WILDLIFE MANAGEMENT. SO WE WANT PEOPLE TO COME AND TAKE ADVANTAGE OF THAT. MOVING TO THE NEXT, THE TOP KIND OF ENDS YOUR PERMIT FEES. AND THEN YOU SEE THE ENTRANCE FEES. AND A REMINDER, AT LAKE ALLEN-HENRY, THE RESIDENT CHARGE AND THE NON-RESIDENT CHARGE ARE SLIGHTLY DIFFERENT. SO YOU SEE ENTRANCE, BOAT LAUNCHING, CAMPING, AND THEN THE ANNUAL FEES KIND OF TOWARDS THE BOTTOM THERE. AND THAT'LL END LAKE ALLEN-HENRY. OKAY. THE AIRPORT. THERE WE GO. AN AIRPORT IS THE MOST UNIQUE OF ALL OF YOUR UNIQUE FEES. IT HAS EARNED INCOME. IT HAS RENTAL INCOME. IT HAS LANDING FEES. IT HAS FEDERAL MONEY. KELLY CAMPBELL AND HER CREW DO A MASTERFUL JOB OF THAT. BUT WHAT WE'RE LOOKING AT HERE ON THE REVENUE SIDE IS A $5.9 MILLION YEAR-OVER-YEAR INCREASE. YOU'LL SEE WHERE THOSE ARE COMING FROM. $5.1 MILLION OF THAT IS GOING TO BE AVAILABLE RESERVES GOING FOR CASH CAPITAL. THE LANDING FEES, THE LANDING OPERATIONS WILL GENERATE MORE DOLLARS. TERMINAL OPERATIONS. ALL OF THE RENTAL AGREEMENTS AT THE AIRPORT HAVE ANNUAL ESCALATORS IN THEM. AND YOU'LL SEE HOW THOSE START TO TRICKLE OUT. AND THEN PARKING OPERATIONS. THE EXPENSE SUMMARY, OF COURSE, IS GOING TO MATCH OVER ON YOUR REVENUE. AND COME ON. HERE WE GO. THE EXPENSE SUMMARY IS GOING TO MATCH WHAT YOU SAW ON THE REVENUES. PARKING PROFESSIONAL SERVICES IS ESTIMATED TO GO UP. THIS IS THE YEAR THAT WE'LL DO A NEW MANAGEMENT AGREEMENT ON THE PARKING. AND THEN, AGAIN, OUR CASH CAPITAL. MOVING OVER TO ITS FUND MODEL. YOU SEE UP HERE AT THE TOP WHERE YOUR FUNDING SOURCES ARE, MOVING DOWN TO THE DEPARTMENT-LEVEL EXPENSES. AND THEN YOU SEE THE RESERVE CALCULATIONS. THE AIRPORT CONTINUES TO HAVE A VERY STRONG AND STOUT RESERVE FUND. IT ALSO, THOUGH, HAS A UNIQUELY LOW RESERVE FUND [01:50:02] REQUIREMENT. AND SOME OF THAT IS BECAUSE THE DEBT AT THE AIRPORT OFTEN HAS A UNIQUE REVENUE STREAM ASSIGNED TO IT. SO, YOU'VE SEEN ON YOUR AIRLINE TICKET, A PASSENGER FACILITY CHARGE. THAT FUNDS CERTAIN THINGS. YOU RENT A CAR, YOU WILL SEE A CUSTOMER FACILITY CHARGE. THAT FUNDS CERTAIN THINGS. ALL TAKEN IN. WE HAVE AN UNUSUALLY LOW RESERVE REQUIREMENT. BUT IT IS DUE TO THE DIVERSITY THAT WE HAVE IN THOSE REVENUE STREAMS. HERE'S WHAT THE PROPOSAL IS FOR CAPITAL. PAVEMENT MAINTENANCE. PHASE 2. EXTRA $200,000 OR AN ADDITIONAL $200,000. GENERAL PROPERTY IMPROVEMENTS. PHASE 2 ON THAT. $1,455,000. CONTINUED WORK ON THE FREIGHT ROAD AND VARIOUS PARKING PIECES. WE'RE IN A MULTI-YEAR, MULTI-PHASE PROCESS TO IMPROVE THE PERIMETER ROAD. THE CONSOLIDATED RENTAL CAR FACILITY IS DUE FOR SOME UPDATES ON IT. MOVING TO THE NEXT. THIS IS THE YEAR TO BUY THE NEXT PIECE OF SNOW REMOVAL EQUIPMENT. IT'S ALSO TIME TO WORK ON THE BOARDING BRIDGES. YOU SEE THAT. SOME HEAVY EQUIPMENT REPLACEMENTS. ONE VEHICLE REPLACEMENT. AND THEN CONTINUED WORK ON OUR BOILER SYSTEM. ALL IN, IT IS A $10 MILLION CAPITAL PROPOSAL. 9.6 IS NEW DOLLARS. 400 IS EXISTING DOLLARS. SO, THIS IS ALL AIRPORT CASH THAT'S GOING INTO THE CAPITAL PROGRAM. OKAY, MAYOR POTEIN. THANK YOU, MAYOR. ONE OF THE, WE TALKED ABOUT THIS BRIEFLY, BEHIND THE SCENES, IS PARKING AT THE AIRPORT. WHAT IS THE KIND OF LONG-TERM PLAN FOR EXPANDING PARKING? BECAUSE IT IS, IT HAS BECOME A COMPLAINT OF CHOICE MORE RECENTLY. IT HAS GARNERED A LOT OF ATTENTION LATELY, SO THANK YOU. MS. CAMPBELL AND HER CREW HAVE WORKED TO DEVELOP ALTERNATIVES, OPTIONS IS PROBABLY A BETTER WORD. THERE'S A LOT OF DISCUSSION ABOUT HOW MUCH SHORT-TERM, UNCOVERED SHORT-TERM PARKING WE SHOULD HAVE. IT SEEMS THAT ONE OF THE LARGER DEMANDS IS FOR TRUE GARAGE PARKING. THE TWO-STORY GARAGE OUT THERE, REALLY ONLY ONE FLOOR OF IT IS ACTUALLY COVERED PARKING. SO, THERE'S A SERIES OF ALTERNATIVES TO LOOK AT AS TO WHAT WE COULD DO. ONE OF THEM WOULD BE TAKE THAT DOWN AND, YOU KNOW, PUT ANOTHER ONE UP. IT'S LIKELY MORE FEASIBLE TO LEAVE IT WHERE IT IS AND PUT ANOTHER GARAGE, NOT TOUCHING IT, BUT CLOSE TO IT, AND MOVING SOME OF THAT AROUND. THE AIRPORT HAS DONE A PARKING SURVEY THAT THEY HAVE SENT OUT. THE RESULTS ARE BACK. I HAVE NOT HAD A CHANCE, YOU KNOW, TO GO THROUGH THEM. WE NEED TO DO SOMETHING. WE JUST HAVEN'T FIGURED OUT WHAT IT IS. THE SHELTER PARK IS STILL A BIT UNDERUTILIZED, IN FACT, LARGELY UNDERUTILIZED, BUT IT ALSO DOESN'T SEEM TO BE WHAT THE CUSTOMERS WANT. I AGREE. THAT WOULD BE SOMETHING THAT I KNOW OBVIOUSLY NOT BUDGETED IN THIS BUDGET CYCLE, BUT I THINK WE FOR SURE NEED TO MOVE FORWARD WITH IT AND LOOK AT IT. YES, MA'AM. ANY OTHER QUESTIONS? COULD YOU GIVE US A BRIEF WHAT'S IN THE AIRPORT PROPERTY IMPROVEMENTS PHASE TWO, WHETHER IT'S INCLUDED IN THAT ONE AND A HALF MILLION? DO YOU KNOW? KELLY, DO YOU KNOW? THANK YOU, MAYOR. IT'S A COMBINATION OF A FEW THINGS. SOME ADDITIONAL CCTV CAMERAS, UPGRADING OUR COMMUNICATIONS ROOM, REPLACING THE DISPATCH CONSOLE IN OUR OPS CENTER. IT HAS SOME JUST GENERAL BUILDING IMPROVEMENTS TO SOME OF OUR VARIOUS OPERATING BUILDINGS ON THE PROPERTY. ANY MORE SPECIFICS THAN THAT? OKAY. ALL RIGHT. THANK YOU. YEAH, AND THE RECENT IMPROVEMENTS TO IT, THEY LOOK REALLY NICE. I'M SORRY? THE RECENT IMPROVEMENTS, AND I SAY RECENT, YOU KNOW, IT'S BEEN A WHILE, BUT IT IS LOOKING NICE. THANK YOU. WE AIM TO KEEP IT THAT WAY. YEAH. OKAY. I MENTIONED THE VARIOUS ADJUSTMENTS THAT GO TO THE RENTAL AGREEMENTS AND SO FORTH ASSOCIATED WITH THE AIRPORT. THOSE ARE ON THIS PAGE, AND THIS PAGE, AND THIS PAGE. SO, ONE THING YOU DO SEE ON HERE IS A PUBLIC PARKING FEE ON THE LONG TERM INCREASING BY A DOLLAR A DAY. SO, THAT'S THAT FARTHER [01:55:01] OUT OPEN LOT THAT'S OUT THERE. OKAY. TRANSIT. AND TRANSIT WILL FINISH KIND OF YOUR MAJOR ENTERPRISES. ENTERPRISES, WE CAN STOP THEN AND JUMP FORWARD AND GRAB A HOLD OF OUR COMPONENT UNITS, AND THEN WE'LL COME BACK AND PICK UP THE REST. SO, CITY BUS. HERE IS THE SUMMARY FOR CITY BUS. THE THINGS I'D LIKE TO POINT OUT ON THIS ONE, IF WE LOOK AT THE TOP, THE CITY TRANSFER. SO, THE CITY TRANSFER, THAT IS GENERAL FUND DOLLARS, AND IF THIS IS THE AMOUNT WE FUND NEXT YEAR OUT OF THE GENERAL FUND, THAT TAKES US BACK TO THE LEVEL WE WERE FUNDING BASICALLY IN 2019. SO, FROM 2020 TO LAST YEAR, WE HAVE BEEN SLOWLY SPENDING DOWN BOTH WHAT'S CALLED THE CARES GRANT AND THE ARPA GRANT. BUT THEY WERE ALL COVID GRANTS. THEY'RE SEPARATE AND DISTINCT FROM THE ONES THE CITY HAD TO ALLOCATE. THEY WERE UNIQUE TO TRANSIT. MR. MANDRELL AND HIS CREW HAD MADE THE DECISION MANY YEARS AGO TO SET THOSE UP AND NOT USE THEM ALL IN ONE OR TWO YEARS, BUT TO USE THEM A PIECE AT A TIME. WELL, THOSE ARE SPENDING OUT, AND AS THOSE SPEND OUT, THE GENERAL FUND PART IS STARTING TO COME BACK. SO, AGAIN, AT BASICALLY $3.1 MILLION, THAT'S WHERE THE GENERAL FUND TRANSFER WAS IN 2019. BUT JUST KNOW THAT THAT'S COMING OUT OF YOUR GENERAL FUND. THE $948,000 RIGHT BELOW IT, DEPARTMENT OPERATIONS, THAT'S WHAT THEY GENERATE FROM ACTUAL THE FARE BOXES USING THE BUDGET, USING THE BUS. ADVERTISING, THE TEXAS TECH SUBSYSTEM, CONTINUES TO BE A LARGE PART. COUNCIL OF GALL RECENTLY APPROVED A ONE-YEAR AGREEMENT TO EXTEND THAT AND THEN RENEGOTIATE WITH TEXAS TECH. TRANSFER FROM ECONOMIC DEVELOPMENT FUND. THAT IS ALSO TAX MONEY. BUT 2012, I BELIEVE, THE DECISION WAS MADE FOR WHAT HAD BEEN TRANSFERRED TO ECONOMIC DEVELOPMENT PURPOSES, SO THINK PRIMARILY MARKET LUBBOCK, THAT HAS INCLUDED SINCE THAT POINT IN TIME $400,000 OF THAT MONEY THAT ALSO GOES TO CITY BUS. SO, IF YOU WANT TO TAKE YOUR TOTAL CITY CONTRIBUTION, IT'S $3.458 MILLION. IT ALL COMES FROM TAX. IT WAS JUST DIVIDED UP DIFFERENTLY GOING WAY BACK. SO, TOTAL REVENUE ON THE OPERATING SIDES, $9.59. THE NEXT PIECE, THE PIECE IN THE MIDDLE, THOSE ARE THE GRANT PROGRAMS THAT COME IN TO TRY TO ASSIST. AND SOME OF THEM ARE MORE GENERAL. SOME OF THEM ARE MORE TARGETED. YOU CAN SEE WHERE THE CARES GRANT HAS SPENT OUT, BUT THE ARP, WHICH IS ANOTHER ONE OF THOSE GRANTS, IS COMING IN. SO, TAKING THE TOTAL OF YOUR FUNDING SOURCES TO $19.99 MILLION. SO, IT'S A $20 MILLION A YEAR OPERATION. ON THE BOTTOM, YOU HAVE YOUR EXPENSES. SO, COMPENSATION IS UP ABOUT 3.3 PERCENT, BENEFITS 2.5 PERCENT, AND THEN YOU SEE HOW THAT CARRIES DOWN. THIS IS A BALANCED BUDGET WITH A TOP-LINE CHANGE OF 1.3 PERCENT PER YEAR. AND REMEMBER, THOSE ARE NOT CITY OF LUBBOCK EMPLOYEES. SO, IT'S A SEPARATE DEAL. YOU'RE PAYING A MANAGEMENT CONTRACT. THE MANAGEMENT GROUP IS WHO ACTUALLY DOES THAT. THE CITY OWNS ALL THE PHYSICAL FACILITIES, AND THE CITY OWNS ALL THE BUSES. A COUPLE OF CHANGES THAT HAVE BEEN PROPOSED HERE. THE VANS AND THE BUSES. SO, THESE ARE THE SMALL ONES. THEY'RE TAKING OUT ADVERTISING AT THE TRANSFER PLAZA. THAT'S JUST NOT BEEN SOMETHING THAT'S REALLY WORKED. AND THEN TAKING OUT THE BUS BENCH ADVERTISING. QUESTIONS? MAYOR, IF IT WOULD BE ALL RIGHT WITH YOU, THIS WOULD PROBABLY BE THE TIME TO SWITCH OVER TO THE COMPONENT UNITS. SO, DON'T WATCH THE SCREEN AND GET SEASICK, BUT I'LL JUMP FORWARD. JOHN, YOU WANT TO DO ECONOMIC DEVELOPMENT AS WELL? MAYOR, IF YOU WANT TO CALL MR. OSBORNE UP. HE'S ON HIS WAY. YOU READ YOUR MIND. YOU'RE FLIPPING OVER TO PAGE, WHAT, 88? OKAY, YEAH. PAGE 89. OKAY. [02:00:03] OKAY. JOHN, HANG ON JUST A SEC. I MIGHT LET YOU TAKE THIS SLIDE. YEAH, I SHOULD PROBABLY TAKE THAT SLIDE. OKAY, SOMEHOW I'VE GOTTEN MYSELF LOST ON THIS. OKAY, IF YOU WANT TO ADVANCE THAT ONE TO 101. THERE WE GO. ALL RIGHT, THANK YOU, MAYOR AND COUNCIL, APPRECIATE YOU ALLOWING ME TO BE HERE TO TALK ON OUR DIFFERENT BUDGETS. I'LL START WITH THE LEEDA BUDGET, AND SO JUST AS A REMINDER, WE WORK VERY CLOSELY WITH CITY STAFF TO RECEIVE OUR SALES TAX REVENUE NUMBER. THAT IS A PROJECTION OF WHAT THEY BELIEVE SALES TAX WILL DO IN THIS UPCOMING YEAR, AND SO WHATEVER THEIR FORMULA IS FOR DETERMINING THAT NUMBER IS WHAT WE GET THE SHARE THAT IS ONE-EIGHTH OF 1% THAT WAS VOTED ON BACK IN 2003. SO, ANYHOW, SO OUR SALES TAX NUMBER IS GOING TO BE UP, ACCORDING TO CITY STAFF, BY 3.91%. WE ARE GOING TO END UP... WE BELIEVE THAT WE'VE GOT A PROJECT THAT MAY LAND IN THIS NEXT YEAR, AND AS A RESULT OF THAT, WE MAY BE UTILIZING SOME OF OUR NET CASH ASSETS IN THE FORM OF LAND. AND SO, YOU'LL SEE THAT LINE ITEM HAS RISEN QUITE A BIT, AND THAT'S BECAUSE WE BELIEVE A PROJECT WILL HAPPEN. WHEN WE WORK ON OUR BUDGETS, WE HAVE TO KIND OF GO WITH WHAT WE THINK WILL TAKE PLACE OVER THE 12 MONTHS OF THE FISCAL YEAR, AND SO MANY OF THOSE INCENTIVES DON'T TAKE PLACE UNTIL THE FOLLOWING YEARS AS THEY ACHIEVE THEIR GOALS, BUT IN THE FORM OF THE TRANSFER OF THAT LAND, WE BELIEVE THAT THAT COULD TAKE PLACE WITHIN THE NEXT 12 MONTHS OF THE FISCAL YEAR. SO WE DO HAVE, IN OUR EXPENSES, A COST OF LIVING ADJUSTMENT OF 3%, SLIGHT INCREASE IN OUR EMPLOYMENT BENEFITS. WE DO HAVE SOME EFFORTS THAT WE'RE TRYING TO DO IN OUR MARKETING EFFORTS TO ATTRACT AND ALSO TO GROW OUR EXISTING COMPANIES, AND SO WE'VE GOT AN INCREASE RIGHT THERE. IN SOME OF OUR PROFESSIONAL SERVICES, WE ARE IN THE PROCESS OF WORKING ON OUR STRATEGIC PLAN GOING FORWARD, AND SO THAT'S WHERE YOU SEE THE INCREASE THERE. AND THEN THE FORM OF, AND THEN THE INCREASES THAT YOU SEE FOR OUR CAPITAL OUTLAY, WE'VE GOT QUITE A FEW PROJECTS THAT WE'RE WORKING ON IN THIS UPCOMING YEAR, OR THAT WE BELIEVE WILL TAKE PLACE. MANY OF THEM ARE ASSOCIATED WITH THE NORTHERN PART OF OUR COMMUNITY, UP BY RAILPORT AND THAT RYMER PROPERTY THAT WE'VE TALKED EXTENSIVELY ABOUT, MOST ESPECIALLY THE ELEVATED STORAGE TANK. WE'RE IN THE PROCESS OF FINISHING UP THE ENGINEERING SERVICES. I GOT WORD YESTERDAY THAT WE'RE NEAR HALF DONE ON THE ENGINEERING SERVICES FOR THAT PROJECT, AND OUR INTENTIONS ARE TO, IN THIS UPCOMING YEAR, TO GO TO BID FOR CONSTRUCTION OF THAT ENTIRE PROJECT. THE ONLY REASON THAT WE WOULDN'T MOVE FORWARD WITH THAT CONSTRUCTION IS IF WE START TO SEE THAT THERE'S LESS INTEREST IN COMPANIES BEING IN NORTH LUBBOCK, BUT RIGHT NOW THERE SEEMS TO BE SOME CONTINUED INVESTMENTS BEING LOOKED AT UP THERE. SO THAT'S OUR PRIMARY REASON FOR OUR CAPITAL OUTLAY. OUR INCENTIVE PAYMENTS ARE BASED ON PREVIOUS VOTES BY THE BOARD OVER THE COURSE OF TIME AND WHAT WE BELIEVE WILL BE ACHIEVED ON AN ANNUAL BASIS FOR THIS UPCOMING YEAR, WITH JUST A LITTLE BIT THAT MIGHT TAKE PLACE WITHIN THE NEXT 12 MONTHS AS WELL. AND THEN IN TERMS OF OUR SPECIAL PROJECTS, WE HAVE ADDED A NEW PROGRAM CALLED THE RED RAIDER 100, AND IT'S TO HONOR THE FASTEST 100 COMPANIES, GROWTH IN COMPANIES, THE FASTEST 100 GROWING COMPANIES, EXCUSE ME, THAT ARE EITHER OWNED OR MANAGED OR FOUNDED BY RED RAIDER. AND SO WE'RE PRETTY EXCITED ABOUT THAT PROGRAM. OUR APPLICATIONS FINISH UP THE END OF THIS MONTH FOR BEING HONORED IN THE JANUARY, FEBRUARY TIME PERIOD OF THIS UPCOMING YEAR. SO THOSE ARE THE BULK [02:05:01] OF OUR DIFFERENCES IN OUR DIFFERENT EXPENSE LINE ITEMS. THAT LEAVES OUR CASH RESERVES AT ABOUT 11.2 MILLION, WHICH IS ROUGHLY 15.6 MONTHS OF RESERVES. WE DO BELIEVE THAT WE'VE GOT PROJECTS GOING FORWARD THAT COULD TAKE PLACE IN THE NEXT COUPLE OF YEARS THAT WOULD DEPLETE THOSE CASH RESERVES PRETTY QUICKLY IF THEY WERE TO COME TO FRUITION. HAPPY TO ANSWER ANY QUESTIONS. MAYOR PATEL. THANKS, JOHN. LOOKING BACK OVER ON YOUR FUNDING SOURCE SIDE WHERE IT SAYS USE OF AVAILABLE RESERVES, YOU'VE GOT 13.5 MILLION. KNOWING HOW LIDA FUNCTIONS, DO YOU ACTUALLY HAVE SOMETHING THAT Y'ALL ARE SPENDING THAT ALREADY THAT IS PLANNED FOR THIS YEAR? OR IS THAT AN ANTICIPATED NUMBER POTENTIALLY COMING OUT OF RESERVES? THAT'S ALWAYS AN ANTICIPATED NUMBER. AND IT DOESN'T MEAN THAT WE SPENT IT ALL THIS LAST YEAR. SO SOME OF OUR PROJECTS THAT WE THOUGHT WOULD TAKE PLACE THIS YEAR GET MOVED TO NEXT YEAR BECAUSE THEY DIDN'T NEED TO BE DONE RIGHT AWAY OR THEY DIDN'T COME TO FRUITION. AND SO WITH THE USE OF NET ASSETS IN THIS UPCOMING YEAR, THAT'S WHERE WE WOULD THEN BE AT. IF WE USED EVERY ONE OF THOSE NET ASSETS, WE WOULD BE LEFT WITH ABOUT 11.2 MILLION AND 15.67 MONTHS IN RESERVES. IF YOU USE ALL OF THE 13. YES, MA'AM. BUT THAT MEANS PROJECTS ARE COMING TO FRUITION LIKE WE THINK THEY WILL OR HOPE THAT THEY WILL. OKAY. AND THEN SO LOOKING BACK AT THIS CURRENT BUDGET YEAR ON THE 25.26, DID Y'ALL ACTUALLY SPEND THE 10.9 FROM THE RESERVE OR SOME OF THAT ROLLING OVER INTO THAT 13? SOME OF THAT'S ROLLING OVER. DO YOU KNOW ABOUT HOW MUCH IS COMING OVER? AS WE TALK, I'M SURE MELIN WILL BE LOOKING THAT UP HERE FOR ME JUST SHORTLY. I DON'T HAVE THAT OFF THE TOP OF MY HEAD. BUT Y'ALL DIDN'T SPEND THE FULL 10.9 THAT YOU THOUGHT YOU WERE POTENTIALLY GOING TO. THAT'S CORRECT. AND SOME OF THAT'S COMING OVER. SO IT'S NOT A WHOLE NEW 13. THAT'S CORRECT. OKAY. THANK YOU. YES, MA'AM. MR. COLLINS. SO IT LOOKS LIKE WE'VE ONLY USED APPROXIMATELY 2 MILLION IN NET ASSETS, AND SO 8 MILLION IS ESSENTIALLY MOVING TO THIS NEXT YEAR. COUNCILMAN COLLINS. HI, JOHN. HI. COULD YOU CLARIFY A LITTLE BIT MORE ABOUT THE PROJECT? YOU SAID SOMETHING ABOUT WATER STORAGE. COULD YOU GIVE ME A LITTLE MORE INFORMATION ABOUT WHAT WE'RE TALKING ABOUT THERE? SURE. WE'VE WORKED REALLY CLOSELY WITH CITY STAFF ACTUALLY SINCE PROBABLY THE LATE 2010S, MAYBE KIND OF 20, I THINK IT STARTED TO REALLY BECOME EVIDENT IN ABOUT 16, 17, 18 TIME PERIOD THAT THERE NEEDED TO BE ADDITIONAL WATER STORAGE, ELEVATED WATER STORAGE IN NORTH LUBBOCK FOR THE BUSINESS AND INDUSTRY AND ANYBODY ELSE THAT'S USING WATER UP THERE TO HELP WITH NOT JUST AVAILABILITY OF WATER, BUT MORE IMPORTANTLY FOR FIRE SAFETY PURPOSES. AND SO WE, LIDA HAS SOME LAND THAT'S JUST WEST OF BEAR CROP SCIENCE. IT'S AS FAR NORTH AS THE CITY LIMITS GOES CURRENTLY, AND WE ARE ENGINEERING AN ELEVATED WATER STORAGE TANK, MUCH LIKE WHAT YOUR CITY STAFF HAS BEEN ENGINEERING AND BUILDING THROUGHOUT THE CITY. WE ARE DOING THAT ON BEHALF OF THE CITY OF LUBBOCK FOR NORTH LUBBOCK. AND THEN THIS PARTICULAR PROJECT IS ROUGHLY A $15 MILLION PROJECT, AND WE WOULD TIE IN THE WATER LINES RIGHT THERE AT BEAR CROP SCIENCE AND THEN COME DOWN AVENUE P DOWN TO 1294, TIE BACK INTO I-27'S WATER LINES, AND THEN COME BACK DOWN TO KUKA STREET AND TIE BACK INTO THE WATER LINES AT I-27 AS WELL. OKAY, AND IF I RECALL, THE WATER LINES THAT ARE ON THE WEST SIDE OF I-27 WERE DEVELOPED IN RESPONSE TO THE MONSANTO BEAR CROP SCIENCE PROJECT. YES, SIR. WE HAD WATER OVER IN RAILPORT, AND WE BROUGHT IT UP TO THAT NORTHERN LIMIT OF THE CITY LIMITS AND THEN BROUGHT IT UNDERNEATH THE INTERSTATE TO BEAR CROP SCIENCE, ACTUALLY MONSANTO AT THE TIME, AND THEN BROUGHT IT DOWN THE WEST SIDE OF THE INTERSTATE TO 1294 AND LOOPED IT BACK INTO RAILPORT AT THE TIME. YEAH, AND SO I ASK THESE QUESTIONS, AND REALLY I JUST WANT TO POINT OUT THE FACT THAT, YOU KNOW, WHILE LIDA DOES INCENTIVE PROJECTS AND ARE, YOU KNOW, DOING THE WORK THAT'S NECESSARY TO ATTRACT NEW BUSINESSES TO OUR CITY, THEY ARE ALSO BUILDING THE INFRASTRUCTURE REQUIRED TO SUPPORT THEM. SO THE TAXPAYER IS NOT BUILDING THAT. THE SALES TAXPAYER IS PAYING FOR THESE PROJECTS, BUT THE PROPERTY TAXPAYER IS NOT PAYING FOR PROJECTS FUNDED BY LIDA THAT SUPPORT THIS GROWTH IN INDUSTRY, WHICH CREATES NEW PROPERTY TAX. CORRECT. IS THAT A FAIR STATEMENT? YES, SIR. YEAH, I THINK IT'S JUST IMPORTANT FOR THE PUBLIC TO UNDERSTAND THAT, THAT LIDA NOT ONLY IS TRYING TO BRING IN COMPANIES, BUT THEY ARE ALSO TRYING TO CREATE THE INFRASTRUCTURE NECESSARY FOR THOSE COMPANIES TO EXIST AND TO THRIVE [02:10:02] IN OUR COMMUNITIES. AND VISITING WITH CITY STAFF, WE KNOW THAT THIS ELEVATED WATER STORAGE TANK IS NECESSARY FOR EVEN MORE THAN JUST THE LIDA-RELATED COMPANIES, THAT IT WILL HELP OUT ALL OF NORTH LUBBOCK, AND SO WE'RE GLAD TO PARTICIPATE IN THE PROJECT AND ASSIST WITH IT. WE'RE WORKING VERY CLOSELY WITH THEM, OUR ENGINEERING TEAM IS AT PARK HILL, TO MAKE SURE THAT IT FITS THE CITY'S STANDARDS. YES, THANK YOU VERY MUCH. MR. GREEN. I THINK YOU ANSWERED MY QUESTION. I WAS JUST GOING TO PIGGYBACK ON WHAT MR. COLLINS SAID. SO, THIS ELEVATED WATER STORAGE, IT IS SERVING THE OTHER PROPERTIES OTHER THAN WHAT LIDA IS TASKED TO DO AS FAR AS INDUSTRIAL AREA. IS IT SERVICING RESIDENTIAL? WILL IT BE SERVICING RESIDENTIAL AREAS TOO? SO, IT'S ACTUALLY ASSISTING ANY PROPERTY IN NORTH LUBBOCK THAT IS INSIDE THE CITY LIMITS. SO, IF THERE ARE BUSINESSES AND HOMES THAT ARE OUTSIDE THE CITY LIMITS IN NORTH LUBBOCK, THEY'RE NOT GOING TO BE SERVICED BY THIS WATER TOWER BECAUSE THE CITY OF LUBBOCK ACTUALLY HAS AN ORDINANCE THAT SAYS THAT ONLY THOSE THAT ARE INSIDE THE CITY LIMITS CAN ACTUALLY UTILIZE THOSE WATER SERVICES. SO, THE WAY THAT I UNDERSTAND IT, AND I'M AN ECONOMIC DEVELOPER, NOT AN ENGINEER, SO I MAY BE ASKING JOHN TURPIN TO JUMP UP HERE IN A SECOND, BUT THE WAY I UNDERSTAND IT IS THAT WHERE THIS ELEVATED WATER STORAGE WILL BE IS TO ASSIST ALL OF KIND OF QUOTE-UNQUOTE NORTH LUBBOCK, NOT OVER ON THE, OBVIOUSLY, THE NORTHWEST SIDE, BUT MORE SO ALONG THE I-27 CORRIDOR, THE GREATER AREA THERE, TO MAKE SURE THAT THOSE COMPANIES THAT ARE UP THERE, ANY HOMES THAT ARE IN THIS SIDE OF THE CITY LIMITS WOULD BE ABLE TO HAVE ADEQUATE PRESSURES AND AVAILABILITY ON THE OFF CHANCE THERE WAS A NEED FOR THAT FOR SOME DISASTROUS REASONS. AND HOW MUCH IS IT COSTING? THE TOTAL PROJECT IS ABOUT $15 MILLION, AND THAT INCLUDES NOT ONLY THE BUILDING OF, AND ENGINEERING AND BUILDING OF THAT WATER STORAGE, ELEVATED WATER STORAGE TANK, BUT ALSO TO CONNECT IT INTO THE SYSTEM. AS WE CONNECT IT INTO THE SYSTEM WITH THE, THOSE PIPES, IT WILL OBVIOUSLY ENABLE, LEAD IT TO HAVE WATER TO A NUMBER OF DIFFERENT PROPERTIES THAT WE OWN UP IN NORTH LUBBOCK, BUT IT ALSO ENABLES FOR FUTURE GROWTH AND DEVELOPMENT AMONG PROPERTIES WE DON'T OWN. THANK YOU. COUNCILOR ALDERMAN MARTINEZ-GARCIA. AND ONCE AGAIN, JUST TO REINFORCE, THIS WILL ALSO BENEFIT THE RESIDENTS OF THAT AREA. YES, YES, MA'AM, AND OBVIOUSLY MR. TURPIN UNDERSTANDS MUCH BETTER THAN I DO HOW FAR SOUTH THE WATER PRESSURES WILL BE FOR THAT ELEVATED STORAGE, BUT AS WE'VE BEEN TALKING ABOUT, IT'S FOR ALL OF NORTH LUBBOCK. IT'S NOT JUST FOR OUR PROPERTIES. I THINK THERE'S A MISS, AND I THINK PEOPLE DON'T REALIZE THAT THERE'S GROWTH HAPPENING EVEN IN THAT AREA OF TOWN, SO THERE'S A LOT OF GROWTH HAPPENING. YES, MA'AM. IN FACT, WE'VE BEEN LOOKING AT SOME RECENT MAPS, AND EVEN OVER THE LAST FIVE YEARS, THERE'S BEEN TREMENDOUS DEVELOPMENT IN THE HOUSING THAT'S BEEN IN NORTH AND EAST LUBBOCK, AS WELL AS IN CENTRAL LUBBOCK, WITH NEW HOUSING GOING IN. NOT OBVIOUSLY AT THE SAME PACE AS WEST OR SOUTH LUBBOCK, BUT MORE SO THAN I THINK PEOPLE REALIZE IS TAKING PLACE. AND THEN OBVIOUSLY, EVEN IN THE COMMERCIAL PERMITS AREA, WE CONTINUE TO SEE GOOD GROWTH IN NORTH AND EAST LUBBOCK. AND SO OBVIOUSLY, THIS ELEVATED STORAGE TANK IS GOING TO BE NECESSARY TO CONTINUE TO SUSTAIN THAT GROWTH. I KNOW WHAT IT IS, BUT IF YOU CAN JUST, FOR ANYBODY WATCHING, ON THE LEEDA EXPENSES, THE INCENTIVE SP, WHICH I BELIEVE IS SPECIAL PROJECTS, REMIND FOLKS WHAT THAT IS. SO AS WE WORK WITH CORPORATIONS THAT ARE LOOKING TO ESTABLISH OPERATIONS IN OUR COMMUNITY, AND THE COMMUNITY DECIDES TO OFFER INCENTIVES FOR A PARTICULAR PROJECT, BY STATE LAW, WE HAVE TO HAVE CONTRACTS WITH THEM TO OFFER THOSE INCENTIVES. THOSE INCENTIVES HAVE TO HAVE CLAWBACKS ASSOCIATED WITH THEM, AND THERE'S AGREEMENTS ON WHAT THE COMPANY'S GOING TO DO AND WHAT THE COMMUNITY'S GOING TO DO. AND SO WE, OVER TIME, AS OUR BOARD MEETS AND APPROVES THOSE, AND THEN THOSE PROJECTS THEN COME BEFORE CITY COUNCIL FOR APPROVAL, THEN WE LOG THAT INTO OUR SYSTEM TO MAKE SURE THAT WE PAY THOSE INCENTIVES WHEN THEY'RE ELIGIBLE TO BE PAID AND WHEN THEY'RE SUPPOSED TO BE PAID AND WHEN THEY'VE BEEN EARNED. AND JUST TO REINFORCE, THIS IS WHEN THEY'RE ELIGIBLE, SO AFTER THE PROJECT'S BEEN COMPLETED, THEN THAT'S WHEN WE PAY THEM, RIGHT? THERE'S A VARIETY OF DIFFERENT KIND OF TRIGGER POINTS, AND SO IF WE WERE TO GRANT THEM LAND, OBVIOUSLY THEY CAN'T BUILD THE PROJECT IF THEY DON'T HAVE THE LAND, AND SO WE HAVE A PROCESS [02:15:01] FOR THAT, BUT ALSO A CLAWBACK ASSOCIATED WITH IT. OUR JOB CREATION INCENTIVES ARE PAID AFTER THE COMPANY HIRES THE EMPLOYEE AND PAYS THE EMPLOYEE, SO THEY'RE PAID AFTER THE FACT. MANY OF OUR INCENTIVES ARE KIND OF DESIGNED THAT WAY. WE'VE EVEN MADE AN OFFER TO ASSIST WITH THE PERMITTING COSTS ASSOCIATED WITH A PROJECT, BUT THEY'VE GOT TO BE, IT'S AS A REIMBURSEMENT, SO THEY'VE GOT TO FRONT THAT FIRST, AND THEN THEY GET REIMBURSED IT ONCE THEY'VE EXPENDED IT. THANK YOU. MAYOR, WOULD YOU LIKE ME TO KEEP GOING, OR DO YOU HAVE ANY OTHER QUESTIONS? COULD YOU EXPLAIN JUST A LITTLE BIT MORE ABOUT THE SPECIAL PROJECTS, THE RED RAIDER 100? HOW DOES THAT OPERATE? BECAUSE YOU'VE GOT AN INCREASE OF ABOUT 2, A LITTLE BIT, 2.6, 2.7 MILLION DOLLARS. I ASSUME THAT'S NOT ALL GOING TO RED RAIDER, BUT... ON OUR SPECIAL PROJECTS? YES. NO, AND IT'S A LITTLE BIT OF A COMBINATION OF LINE ITEMS BETWEEN OUR BUDGET AND YOURS, AND SO I'M NOT EXACTLY FAMILIAR WITH WHICH ONES GOT PUT INTO THAT DIFFERENT AREA THERE, SO LET ME... IT'S A SIZABLE INCREASE. YEAH, FOR US, THE ONLY INCREASE IN OUR SPECIAL PROJECTS SPECIFIC LINE ITEM, IS ABOUT $71,000, AND IT'S RELATED TO THE RED RAIDER 100 PROGRAM. OKAY. THAT'S TO MARKET THAT PROGRAM, AND THEN TO HOLD AN EVENT TO HONOR THOSE WINNERS, AND SO LET ME SEE IF I CAN'T FIGURE OUT... YES, MA'AM. OH, THANKS, MELIN. MY CFO IS SITTING IN THE AUDIENCE AND KEEPING ME ON TRACK, SO THANK YOU VERY MUCH. SO WE ALSO HAVE IN THERE SOME OF THE LAND THAT WOULD BE... IS THAT FOR THE PURCHASE OF THE LAND, OR IS THAT FOR THE GRANTING OF THE LAND? OKAY, SO THAT'S FOR THE LAND THAT WOULD BE GRANTED, ASSUMING THAT THAT PROJECT COMES TO FRUITION, AND SO THE BALANCE OF THAT... $71,000 IS FOR THE RED RAIDER 100 PROGRAM. THE BALANCE OF THAT WOULD BE THE VALUE OF THAT PROPERTY ON THE BASIS OF HOW WE BOUGHT IT. I'M GOING TO MOVE OVER TO MARKET LUBBOCK. HAPPY TO COME BACK IF ANYBODY HAS QUESTIONS THERE. THESE NEXT TWO BUDGETS WILL BE RELATIVELY SIMPLE. THIS IS THE SAME SITUATION WITH MARKET LUBBOCK. WE FUND MARKET LUBBOCK WITH AN ALLOCATION FROM THE CITY OF LUBBOCK. IT'S TRADITIONALLY BEEN FROM THE PROPERTY TAXES, BUT IT'S A SET DOLLAR AMOUNT, AND THAT DOLLAR AMOUNT IS COMMUNICATED TO US BY THE CITY STAFF, AND SO THIS YEAR WE'VE SEEN A DECREASE OF ABOUT 1.5 PERCENT, OR ABOUT $47,000 ROUGHLY. WE ARE SPENDING QUITE A FEW OF OUR NET ASSETS, AND THAT'S TO ASSIST WITH THE 1585 BALL FIELDS TO DO THAT RENOVATION PROJECT. THAT'S A COMBINATION PROJECT FOR US. IT'S BOTH IN MARKET LUBBOCK AND IN VISIT LUBBOCK, SO I'M GOING TO TALK ABOUT IT HERE AGAIN SHORTLY. THE TOTAL PROJECT IS ABOUT $8.4 MILLION. IN OUR CURRENT MARKET LUBBOCK BUDGET YEAR, THE ONE THAT WE'RE IN AT THE MOMENT, WE'RE SPENDING JUST SHY OF $500,000 ASSOCIATED WITH ENGINEERING RELATED TO IT, BUT THE BALANCE OF IT WILL BE IN THIS UPCOMING BUDGET YEAR. WE'VE DECREASED JUST ABOUT EVERY LINE ITEM IN THAT BUDGET TO TRY TO GET TO WHERE WE WOULD BE BOTH AT THREE MONTHS CASH RESERVES, WHICH IS A LITTLE OVER $530,000, AND ALSO STILL BE ABLE TO FUND THESE BALL FIELDS. AND THE BALL FIELDS ARE INCLUDED WHERE, WHICH ARE THE EXPENSES? THE BALL FIELDS ARE GOING TO BE UNDER YOUR LINE ITEM SPECIAL PROJECTS. OKAY. WE HAD ONE INCREASE IN THE GRANTS, AND THAT IS THAT WE HAVE BEEN WORKING VERY CLOSELY WITH CITY STAFF ON THE FUNDING OF THE LUBBOCK CULTURAL ARTS FOUNDATION. STACEY HEATH IS OUR DIRECTOR OF THAT. SHE DOES A PHENOMENAL JOB, AND SO ALTOGETHER WE'VE INCREASED THEM JUST A LITTLE BIT TO MATCH WHAT THE CITY IS DOING. BUT THOSE ARE THE ONLY TWO INCREASES. ALL RIGHT. QUESTIONS? OH, MR. GREEN. THAT'S ALL RIGHT. DID YOU... I MISSED IT. [02:20:02] DID YOU GO OVER YOUR RESERVES? SO FOR OUR RESERVES, WE HAVE ABOUT $530,000. AT THE END OF THIS BUDGET YEAR, WE'LL HAVE ABOUT $530,000 IN RESERVES. THAT'S ROUGHLY THREE MONTHS OF RESERVES. AND YOU'RE SPENDING $3.3 MILLION OF YOUR RESERVES? YES, SIR. THIS YEAR? YES, SIR. AND THAT'S PRIMARILY TO FUND THE BALLPARKS. THANK YOU. MR. BRUEGEL. MR. OSBORNE, THERE'S A SUBSTANTIAL CHANGE TO THE MARKETING BUDGET FOR MARKET LUBBOCK, IT LOOKS LIKE, THIS YEAR. CAN YOU TELL ME A LITTLE BIT ABOUT THAT? SO OUR MARKET LUBBOCK BUDGET IS REALLY GEARED TO MARKETING DOWNTOWN. THIS IS WHERE WE HOUSE ALL OF OUR DOWNTOWN GRANT PROGRAMS, MARKET LUBBOCK IS, AS WELL AS THE MARKETING OF IT. WE ALSO FUND THE INNOVATION HUB GRANTS THAT WE DO THROUGH MARKET LUBBOCK. SO THOSE ARE KIND OF THE MAIN PROJECTS THAT WE DO HERE, BESIDES BALL FIELDS THIS UPCOMING YEAR. AND SO, AGAIN, TO TRY TO MAKE BUDGETS MEET AND TO STILL HAVE THREE MONTHS IN RESERVES, WE HAD TO REDUCE DOWN THE MARKETING FOR DOWNTOWN. AND THEN WE ALSO REDUCED DOWN OUR GRANTS AVAILABLE FOR OUR DOWNTOWN AND COMMERCIAL REVITALIZATION ZONES. AND THAT'S LARGELY IN PART BECAUSE OF THE BALL FIELD EXPENDITURE THIS YEAR, RIGHT? YES, SIR. OKAY. IT'S A TRADE-OFF IN SOME WAYS. YEAH. OKAY. MAYOR PORTEUM. JUST REAL QUICK, JOHN, ON THE LINE ITEM PART OF IT, IS THE GRANT THAT GOES FROM MARKET LUBBOCK TO LIDA IN THE GRANT PORTION OF THIS, OR WHERE DO YOU SEE THE EXPENDITURE? WHERE ARE YOU TRANSFERRING MONEY OVER? THAT'S, IT'S UNDER GRANT, AND THEN IT SAYS LCAF AND LIDA. AND SO LCAF IS THE LUBBOCK CULTURAL ARTS FOUNDATION, AND THEN LIDA IS THE MILLION DOLLARS. OKAY. THANK YOU. I BELIEVE THIS IS THE LAST OF THE FIVE YEARS THAT WE ARE DOING SINCE WE LANDED LEPRINO TO TRY TO HELP GET LEPRINO PAID FOR OUT OF LEGAL. THANK YOU. SO IT'S UNDER THE GRANT PART OF YOUR EXPENSES FOR MARKET LUBBOCK. IS THAT RIGHT? YES, SIR. OKAY. ON YOUR SHEET THERE, IT'S UNDER GRANTS. YES. OKAY. ON THE SCREEN, IT SAYS, RIGHT ABOVE SPECIAL PROJECTS, IT SAYS GRANTS, AND $1,112,500. ONE MILLION OF THAT IS GOING TO LIDA, AND THE OTHER $112,500 IS GOING TO LCAF. AND THAT SHOWS UP ON THE ECONOMIC DEVELOPMENT AS A GRANT FROM MLIS. YES, SIR. OKAY. THAT'S IT. AND I BELIEVE THIS IS THE LAST, UNLESS THE COUNCIL CHANGES ITS OPINIONS, THIS IS THE LAST THAT WE WILL HAVE THAT TRANSFER COMING OVER FROM HERE ON THAT IT WILL REMAIN IN MARKET LUBBOCK. ALL RIGHT. OKAY. VISIT LUBBOCK. AND VISIT LUBBOCK AND LUBBOCK SPORTS, I LOOK AT TOGETHER. THIS IS SOMETHING THAT I EVERY YEAR BRING UP, AND I ONLY BRING IT UP ONCE, AND IT'S RIGHT HERE AS WE'RE PRESENTING, SO THIS IS PROBABLY THE WRONG TIME TO DO IT. BUT I THINK ROUGHLY 50 YEARS AGO, THEY SEPARATED LUBBOCK SPORTS AND THE CONVENTION AND VISITORS BUREAU. THEY WERE TWO SEPARATE ENTITIES, AND IT WAS FUNDED SEPARATELY. AT SOME POINT, THEY MERGED THEM TOGETHER, BUT THEY DIDN'T THINK IT WOULD WORK, AND HERE WE ARE 30 YEARS LATER STILL DOING THESE SEPARATE BUDGETS. SO WHEN YOU LOOK BETWEEN THESE TWO, THE ESSENTIAL PART OF THIS IS TO SAY THAT WE CAN'T DO LUBBOCK SPORTS WITHOUT VISIT LUBBOCK, AND WE VERY MUCH BELIEVE THAT LUBBOCK SPORTS IS A PART OF VISIT LUBBOCK. AND SO INTERNALLY, WHILE WE CREATE THESE BUDGETS FOR THE CITY STAFF TO HAVE, ULTIMATELY IT IS ALL ONE BIG BUDGET FOR US OVER IN VISIT LUBBOCK. AND WE BRAND VISIT LUBBOCK AND LUBBOCK SPORTS TOGETHER UNLESS WE'RE TALKING TO A SPORTS EVENT GROUP, AND THAT SEEMS TO KIND OF WORK BEST. YOU'LL NOTICE THAT MANY OF THESE CATEGORIES ARE DOWN. OUR REVENUES FOR THE HOTEL MOTEL TAX IN BOTH THE CBB AND IN LUBBOCK SPORTS ARE DOWN SLIGHTLY, AND WE INTEND TO SPEND ABOUT $5 MILLION RELATED TO THE BALL FIELDS FOR THAT PROJECT AT 1585. THAT BALL FIELD PROJECT IS TO BASICALLY TAKE ALL THE EXISTING GRASS ON ALL FOUR QUADS AND THE [02:25:02] DIRT THAT'S IN THE INFIELD AND TURN THAT ALL INTO TURF. AND THAT WILL ENABLE US TO BE ABLE TO HOLD NATIONAL TOURNAMENTS. IT WILL IMPROVE THE QUALITY OF THE SPORTS COMPLEX FOR OUR YOUTH THAT'S LIVING HERE, BUT ALSO ENABLE US TO HAVE A TREMENDOUS NUMBER OF NEW TOURNAMENTS COMING TO OUR COMMUNITY. WE'VE BEEN EXCITED TO WORK WITH COLBY AND THE PARKS AND REC TEAM ON THIS PROJECT, AND I KNOW COLBY'S BEEN A HUGE SUPPORTER OF THIS AS WELL AS THE OPPORTUNITIES THAT THESE BALL FIELDS COULD BE UTILIZED FOR EVEN OTHER THINGS BESIDES BASEBALL, USING THE OUTFIELD FOR VARIOUS THREE-ON-THREE OR SOCCER-RELATED OR FLAG FOOTBALL OR SOMETHING ALONG THOSE LINES. AND SO IT'LL HELP WITH THE MAINTENANCE SIDE OF IT, BUT THE PART THAT WE'RE EXCITED ABOUT AS WELL IS THAT WHEN WE HAVE RAIN AND IT COMES, IT OFTENTIMES COMES IN BUCKETS, AND AS A RESULT, MAKES IT REAL DIFFICULT FOR US TO BE ABLE TO PLAY THOSE TOURNAMENTS. BUT WITH THIS TURF SYSTEM, THERE'S ACTUALLY AN UNDERGROUND WATER CATCHMENT SYSTEM SO THAT OFTENTIMES YOU CAN BE PLAYING WITHIN A FEW HOURS AFTER A RAINSTORM AND IT FEEL LIKE IT DIDN'T EVEN RAIN. SO MANY OF OUR CATEGORIES ARE DOWN. THIS IS, AGAIN, TO TRY TO MAKE OUR BUDGET MEET THE AVAILABILITY OF INCOME THAT WE HAVE FOR US, BOTH THE NUMBERS THAT WERE GIVEN TO US, BUT ALSO THAT WE HAVE IN CASH RESERVES AND STILL BE ABLE TO DO THAT BALL FIELD PROJECT. RIGHT NOW, WE BELIEVE THAT BALL FIELD PROJECT WILL BE FINISHED BY THE END OF FEBRUARY. I THINK THERE'S EVEN INCENTIVES FOR THEM TO FINISH BY THE END OF JANUARY, AND THAT WAY WE'RE READY FOR THE SPRING SEASON TO TAKE PLACE. WITH THIS BUDGET, WE'LL END UP HAVING 1.6 MILLION IN RESERVES. THAT LEAVES US ABOUT FOUR AND A HALF MONTHS OF CASH RESERVES AT THE END. COUNCILWOMAN MARTINEZ-GARCIA. THANK YOU, MAYOR. JOHN, I KNOW THAT WE ARE PROBABLY LOSING DOLLARS FOR NOT HAVING UPDATED OR DOING THESE FILLS, SO WHAT IS THE POTENTIAL THAT WE COULD SEE BY ADDING THE TURF? AND I KNOW IT'S GOING TO INCREASE THE TYPE OF TOURNAMENTS THAT WE GET, BUT DO YOU HAVE MAYBE AN ESTIMATED AMOUNT THAT WE COULD POTENTIALLY SEE? WELL, WE ARE IN A CHALLENGING SITUATION BECAUSE MANY OF OUR NEARBY CITIES ARE ACTUALLY HAVING TURF FIELDS BUILT FOR THEM. I THINK DOWN IN THE MIDDLE IN ODESSA, COLBY, CORRECT ME IF I'M WRONG, I BELIEVE THAT THE HEAD OF THE OIL COMPANY ACTUALLY BUILD THE FIELDS FOR THE CITY OF MIDLAND AND DONATE IT TO THEM. I'VE HEARD THAT ABILENE IS ALSO GETTING FIELDS AS WELL. THIS ALMOST KEEPS US IN THE RUNNING TO BE ABLE TO CONTINUE TO GET TOURNAMENTS, BUT THE THING THAT IT ALSO DOES IS IT ALLOWS US TO PLAY LONGER THROUGH THE YEAR BECAUSE YOU'RE ON TURF AND NOT WEARING OUT THAT GRASS WHEN IT'S NOT GROWING AND IT'S NOT RAINING AND YOU'RE NOT IN SEASON, SUCH AS THE WINTERTIME. AND IT ALSO ENABLES YOU TO HAVE OTHER TYPES OF SPORTS BEING ON THERE SO THAT WE CAN MORE MAXIMIZE THE EVENTS THAT TAKE PLACE. OTHER TYPES OF EVENTS CAN TAKE PLACE DURING THE EARLY PART OF THE WEEK. AND THEN THE THING THAT WE, AGAIN, LIKE THE MOST ABOUT IT IS THE FACT THAT WE WON'T BE SUBJECT TO RAIN OUTS. THIS, IN THE LAST 15 OR SO MONTHS OR SO, I CAN'T TELL YOU HOW MANY TIMES SCOTT'S COME TO ME AND SAID, OF ALL THE DAYS FOR IT TO RAIN, THURSDAY, FRIDAY, AND SATURDAY WAS THE WRONG TIME. LIKE WE NEEDED THE RAIN, WE NEEDED IT DESPERATELY, BUT THAT THURSDAY, FRIDAY, AND SATURDAY WE HAD, WE WERE MAXED OUT ON TOURNAMENTS HERE IN OUR COMMUNITY AND THEY ALL GOT RAINED OUT. AND SO IT CAN HAVE A TREMENDOUS NEGATIVE IMPACT BY NOT HAVING THOSE TURKEYS. YEAH, I HEAR IT A LOT FROM DIFFERENT TEAMS, DIFFERENT SPORTS. SO I'M GLAD THAT WE'RE STARTING TO MOVE, BUT WE STILL HAVE A LONG WAY TO GO. YES. COUNCILMAN COLLINS. THANK YOU, MAYOR. SO, JOHN, CORRECT ME IF I'M WRONG, OVER THE COURSE OF THE LAST SAY, EIGHT YEARS SINCE 2019, MARKET LUBBOCK AND VISIT LUBBOCK HAS CONTRIBUTED ABOUT, WHAT, $17 MILLION TO SPORTS FIELDS? YES, SIR, PRETTY CLOSE TO THAT. THE BURL-HUFFMAN FIELDS, THAT WHEN WE RENOVATED THOSE IN 2019, FINISHED IT IN 2020, WE PUT IN ALL NEW IRRIGATION SYSTEM AND THEN ALSO ADDED BATHROOM, A BATHROOM THAT NEEDED TO BE DONE UP THERE. AND THEN WE ALSO PUT IN THOSE CHAMPIONSHIP FIELDS THAT WERE TURFS THAT PEOPLE COULD PLAY EVEN IF IT RAINED. AND JUST TO GIVE A BETTER EXPERIENCE TO BOTH THE FANS AND THE PLAYERS, THAT WAS ABOUT AN $8 MILLION PROJECT THAT WAS COMPLETELY FUNDED OUT OF MARKET LUBBOCK. THIS PROJECT WE COULDN'T DO OUT OF MARKET LUBBOCK. WE DIDN'T HAVE ENOUGH FUNDS TO DO IT JUST OUT OF MARKET LUBBOCK. SO WE PUT THE BULK OF THE EXPENSE ACTUALLY ON VISIT [02:30:02] LUBBOCK. AND SO ABOUT $5 MILLION OF THE $8.4 MILLION IS IN VISIT LUBBOCK. THE REMAINING $3.5 MILLION IS COMING OUT OF MARKET LUBBOCK. SO TO PIGGYBACK A LITTLE BIT ON THE COUNCILWOMAN'S QUESTION, WE AS A COMMUNITY AND THESE TWO ORGANIZATIONS ARE DOING THINGS WITH THE INTENTION OF BRINGING IN TOURNAMENTS, HEADS AND BEDS, VISITORS INTO THE COMMUNITY, RIGHT? BUT WOULD YOU SAY THAT THOSE FIELDS ARE UTILIZED 50% BY LOCALS OR 60, 40? DO YOU HAVE ANY KIND OF IDEA OF HOW MUCH UTILIZATION COMES FROM THE LOCAL COMMUNITY? LET ME SEE, COLBY. COLBY, YOU'RE STILL IN THE OFFICE? COUNCIL CHAIRMAN? SORRY, COLBY, I DIDN'T MEAN THAT. NO PROBLEM. I WOULD SAY, HONESTLY, IT'S ABOUT HALF AND HALF BECAUSE PRIMARILY ON THE WEEKENDS IS WHEN WE'RE BRINGING IN THE TOURNAMENTS. THROUGHOUT THE WEEK, WE ARE ABLE TO FACILITATE OUR LOCAL YOUTH LEAGUES AND DIFFERENT THINGS TO THAT NATURE. AND SO MONDAY THROUGH THURSDAY, LOCAL STUFF. FRIDAY, SATURDAY, SUNDAY IS GOING TO BE MORE OF YOUR OUTSIDE TOURNAMENTS. DO WE DO ENOUGH INFORMATION GATHERING TO TRY TO UNDERSTAND IF THERE IS A POSITIVE RETURN ON THIS INVESTMENT? OF COURSE, THERE'S ECONOMIC IMPACT STUDIES THAT YOU CAN DO AS FAR AS, YOU KNOW, THE AMOUNT OF ECONOMIC IMPACT THAT A TOURNAMENT CAN BRING IN. WE CAN PROVIDE THOSE TYPES OF THINGS. RIGHT NOW, I BELIEVE THAT'S MORE ON THEIR SIDE THAN OUR SIDE. YOU KNOW, RIGHT NOW, WE'RE HOSTING ANYWHERE FROM 42 TO 46 TOURNAMENTS A YEAR. SO WEEKENDS THAT WE'RE DOING SOMETHING OUT THERE IN THAT CONTEXT. WITH HOW MANY PLAYERS? I MEAN, WE TALK ABOUT 46. IT VARIES. WE HAVE SOME OF THEM THAT ARE LARGE. THEY'RE GOING TO USE EVERY FIELD IN TOWN THAT WE HAVE. WE HAVE SOME OF THEM THAT ARE GOING TO BE ABLE TO JUST USE 12 OF THE FIELDS. ONE OF THE NICE THINGS ABOUT ADDING THIS IS THAT YOU ARE NOW GOING TO BE ABLE TO UTILIZE ALL 16 FIELDS FOR MULTIPLE DIFFERENT ORGANIZATIONS, WHETHER IT'S A, YOU KNOW, THERE'S TWO OR THREE DIFFERENT SOFTBALL ORGANIZATIONS THAT ARE OUT THERE NATIONALLY. AND SO THE PITCHING DISTANCES, THE BASE DISTANCES ARE DIFFERENT. AND SO THIS REALLY WILL GIVE US THE FIRST TIME THAT A TOURNAMENT CAN SAY, OKAY, WE'RE GOING TO BRING, WE'RE GOING TO BE ABLE TO USE ALL 16 FIELDS AT ONE COMPLEX. AND THAT'S WHERE WE DO HAVE AN ADVANTAGE OVER SOME OF OUR COMPETITORS IN OTHER CITIES IS THAT MOST OF THOSE ARE SPREAD OUT ACROSS TOWN. AND SO YOU'RE MOVING. SO THAT'S A DRAW THAT THE TOURNAMENT DIRECTORS ARE GOING TO WANT. IT'S EASIER FOR THEM TO STAFF. YEAH. AND SO I GUESS A COUPLE OF POINTS OR QUESTIONS TO ENSURE WE ARE 46 TOURNAMENTS. THAT SOUNDS TO ME LIKE YOU'RE PRETTY BUSY. SURE. YOU KNOW. TWO WEEKS IN A YEAR. YEAH. YEAH. YEAH. EVERY WEEKEND. YOU'VE GOT SOMETHING TO DO, IF NOT MULTIPLES. AND WITH THAT, YOU, WE MENTIONED SOME COMPETITIVENESS THAT'S HAPPENING WITH SOME OF OUR NEIGHBOR CITIES, BUT YOU ARE, AGAIN, SOUNDS TO ME LIKE YOU'RE FULL. YOU'RE BUSY. AND IN ADDITION TO THIS ROI, THIS RETURN ON THIS INVESTMENT THAT WE'RE GETTING THROUGH THE TOURNAMENT PROCESS, WE'RE ALSO CREATING ABOUT 50% OF THE TIME, WE'RE CREATING QUALITY OF LIFE FOR OUR LOCAL COMMUNITY, OUR YOUNG PEOPLE WHO HAVE A PLACE TO GO, A PLACE TO PLAY, A HIGH-QUALITY PLACE. AND I JUST, YOU KNOW, I WANT TO MAKE THAT POINT TO SAY THAT EVEN THOUGH WE'RE DOING THIS MAYBE AS A BUSINESS VENTURE TO SOME DEGREE, WE'RE ALSO CREATING A GREAT DEAL OF BENEFIT TO OUR LOCAL COMMUNITY MEMBERS. AND SO, YOU KNOW, THANK YOU FOR DOING THAT. I THINK, YOU KNOW, SPEAKING ON BEHALF OF THE MARKET LUBBOCK BOARD OF DIRECTORS, THEY REALIZE THAT WE NEED TO BRING MORE VISITORS INTO THIS COMMUNITY. THEY SPEND MONEY AT OUR HOTELS AND OUR RETAIL CENTERS OR RESTAURANTS, AND THAT GENERATES A LOT OF SALES TAX REVENUE FOR US. BUT WE ALSO WANT A GOOD QUALITY OF LIFE IN WHICH OUR FAMILIES WANT TO CONTINUE TO REMAIN HERE IN OUR COMMUNITY AND MOVE BACK TO LUBBOCK. AND HAVING YOUTH SPORTS IS VERY MUCH AN ATTRACTIVE THING FOR A COMMUNITY TO HAVE. AND SO WE BELIEVE IT'S A GOOD INVESTMENT OF THOSE TAX DOLLARS FOR IT. IT DOES LIMIT OUR ABILITY, OBVIOUSLY, TO GO LAND INDUSTRIAL-TYPE PROJECTS, BUT WE HAVE BELIEVED IN IT SO MUCH THAT WE'VE VOTED FOR IT TWICE NOW TO SPEND THOSE DOLLARS. MR. GREEN. THANK YOU. I WANTED TO KIND OF REITERATE OR PIGGYBACK ON MR. COLLINS AGAIN. WE'RE, YOUTH SPORTS IS A $40 BILLION INDUSTRY IN THE UNITED STATES. AND I AGREE, WE'RE SHORTHANDED WHEN IT COMES TO COMPETING AGAINST MIDLAND AND ABILENE AND AMARILLO. AND WHAT I'M WORRIED ABOUT, THOUGH, MOST IS YOU DEPLETED YOUR RESERVES TO $530,000 FOR [02:35:06] MARKET LUBBOCK. YOU'RE USING $3.3 MILLION AND THEN $4.7 MILLION IN VISIT LUBBOCK AND DEPLETED YOUR RESERVES TO $1.6,000 FOR FOUR-AND-A-HALF MONTHS RESERVES, WHICH, AGAIN, I COMMEND. I THINK IT'S VERY IMPORTANT WHAT YOU'VE USED THE MONEY ON. AND, AGAIN, IS THAT A CONCERN? IT IS ONLY FROM THE STANDPOINT OF THE EXPECTATION THAT EVERY FEW YEARS WE CAN DO A BIG PROJECT. I'VE BEEN HERE SINCE 2010, AND WE'VE NOT DONE A BIG CAPITAL IMPROVEMENT PROJECT OUT OF VISIT LUBBOCK. AND SO WE'VE BEEN ABLE TO BUILD THAT FUND UP OVER TIME TO BE ABLE TO DO THIS. AND IN MARKET LUBBOCK, WE DID THAT ONE PROJECT THAT FINISHED IN 2020 AT BURL HUFFMAN. BUT OTHERWISE, IT TAKES US TIME TO BE ABLE TO BUILD UP THOSE AMOUNT OF FUNDS. AND SO I KNOW THAT OUR LUBBOCK SPORTS TEAM IS DISAPPOINTED THAT ONE OF OUR BIG PRIVATE-RUN BUILDINGS THAT WAS USED FOR BOTH VOLLEYBALL AND BASKETBALL IS NOW OFF THE MARKET. AND I KNOW THAT THERE'S OTHERS THAT ARE BEING PROPOSED AND HOPEFULLY WILL BE CONSTRUCTED. BUT THERE'S MORE NEEDS THAN JUST SOCCER AND BASEBALL AND SOFTBALL IN THIS COMMUNITY. AND SO OUR ABILITY TO RESERVE FUNDS OVER TIME TO BE ABLE TO DO A PROJECT LIKE THIS IS GOING TO BE MUCH MORE LIMITED GOING FORWARD. THANK YOU. LOOKING AT THE COMPENSATION FIGURE, IT WENT UP 6.8%. AND I ALSO NOTICED BETWEEN $24, $25 TO $25, $26, IT WENT UP BY ABOUT ALMOST A QUARTER OF A MILLION DOLLARS. SO HAVE YOU ADDED A LOT OF NEW EMPLOYEES? WE'VE ACTUALLY STARTED FILLING POSITIONS. WE HAVE STRUGGLED FOR MANY YEARS IN VISIT LUBBOCK WITH OUR SALES TEAM AND EVEN SOME OF OUR MARKETING TEAM MEMBERS BEING ABLE TO KEEP POSITIONS FILLED. AND ACTUALLY, I BELIEVE WE'RE FULLY STAFFED AT THE MOMENT. ALL RIGHT. LET'S MOVE ON. ANYTHING ELSE I CAN ANSWER FOR YOU? NO. MOVE ON TO SPORTS AUTHORITY, I GUESS. OH, I'M SORRY. I'VE COMBINED BOTH OF THOSE. YOU'VE COMBINED THEM. YOU'RE JUST DOING EVERYTHING OUT OF IT. I'M HAPPY TO. THERE'S NOTHING MORE TO SAY ABOUT IT. NO, SIR. IN OUR BUDGETS, WE COMBINE THOSE TOGETHER. IF I DIDN'T, LUBBOCK SPORTS WOULDN'T HAVE ENOUGH MONEY. AND SO, BUT WE SEE SPORTS AS A VERY GOOD ATTRACTOR FOR TOURISM TO OUR COMMUNITY. I WILL SAY THIS ABOUT THE BALL FIELDS, TOO. BACK WHEN WE DID THE BURL HUFFMAN PROJECT, AND AGAIN, WHEN WE PROPOSED DOING THIS BASEBALL, SOFTBALL REDO AT 1585, THE TOM MARTIN COMPLEX, OUR HOTEL COMMUNITY HAS BEEN INCREDIBLY SUPPORTIVE OF IT. THEY DO BELIEVE THAT THE MORE SPORTS THAT WE HAVE, THE BETTER IT IS FOR THEM. WE SAW ABOUT A 25% INCREASE IN THE NUMBER OF HOTELS. AND I THINK THAT WORKED OUT TO ALMOST 26% OR 28% NEW HOTEL ROOMS TO OUR COMMUNITY OVER THE 2010 DECADE. AND IT'S BEEN DECENTLY STAGNANT OVER THE LAST FIVE YEARS, BUT WE'VE SEEN A PRETTY BIG INCREASE IN REVENUES. THAT'S KIND OF LOOKING LIKE WE MIGHT START TO SEE SOME HOTEL BUILDING OVER THESE NEXT FOUR, FIVE, SIX YEARS, ESPECIALLY AS WE CONTINUE TO INVEST IN OUR SPORTS COMPLEXES LIKE THIS. AND ALSO AS WE SEE INVESTMENTS IN THE CIVIC CENTER. THAT'S ANOTHER BIG THING THAT WE'VE BEEN WATCHING AND PAYING ATTENTION TO, WORKING CLOSELY WITH CITY STAFF ON WHAT THEY'RE HOPEFUL TO PUSH GOING FORWARD. ALL RIGHT. THANK YOU. THANK YOU VERY MUCH. OKAY. MAYOR AND COUNCIL, I BELIEVE CIVIC LUBBOCK WILL BE NEXT. AND VICKI, YOU'RE GOING TO COVER FOR US? VICKI KEY. HELLO, COUNCIL. I'M VICKI KEY. I WORK FOR CIVIC LUBBOCK. AND JIM DOUGLAS IS ALSO HERE WITH THE CIVIC LUBBOCK BOARD. HE'S THE PAST PRESIDENT OF CIVIC LUBBOCK, SO HE'S HERE. VICKI, COULD YOU MOVE THAT MICROPHONE DOWN JUST A LITTLE BIT SO IT'S CLOSER TO YOU? I'M SORRY. THAT'S ALL RIGHT. IS THAT BETTER? THAT'S BETTER. OKAY. SO THE BOARD PREPARED AND APPROVED THEIR BUDGET FOR 26-27 IN MAY. THE BUDGET REFLECTS REVENUES AND EXPENSES RELATED TO THE OPERATION OF THE CORPORATION TO INCLUDE FOOD AND BEVERAGE, CATERING, TICKETING OPERATION, AS WELL AS SPECIAL PROJECTS FUNDED BY REVENUES GENERATED FROM THOSE OPERATIONS. [02:40:01] WE TEND TO BUDGET PRETTY CONSERVATIVELY ON THE REVENUE SIDE BECAUSE THE MAJORITY OF OUR REVENUES ARE EVENT-DRIVEN, AND THOSE EVENTS ARE SCHEDULED BY VENUES FOR WHICH WE PROVIDE SERVICES. SO SOME OF THE HIGHLIGHTS IN OUR OPERATIONAL BUDGET THAT DEALS WITH KIND OF OUR MISSION IS THE LOCAL GRANT PROGRAM THAT IS FUNDED THROUGH THIS PROGRAM, THROUGH THIS BUDGET. THIS PROGRAM FUNDS ARTS AND ENTERTAINMENT PROJECTS AND EVENTS THAT ARE PRESENTED BY LOCAL NONPROFIT ORGANIZATIONS THAT UTILIZE THE CIVIC CENTER OR THE AMPHITHEATER, THE CITY'S AMPHITHEATER. REVENUES FROM FOOD AND BEVERAGE, FROM CATERING, FROM THE TICKETING OPERATION HELPED FUND THAT PROGRAM. AND SO WE'RE PLEASED THAT WE WERE ABLE TO INCREASE THE AMOUNT THAT WE ARE GRANTING OUT FOR NEXT YEAR TO $110,000, WHICH IS THE HIGHEST THAT WE'VE EVER BEEN ABLE TO DO FOR THAT PROJECT. USUALLY IT RAN AROUND $50,000 TO $60,000, SO IT'S GRADUALLY INCREASED OVER THE YEARS, SO WE'RE REAL PLEASED WITH THAT. THE CONTINUATION OF PRODUCING OUR ANNUAL LOVE IT MUSIC NOW ALBUM. THAT PROJECT BEGAN IN 2016 AND HAS BEEN VERY SUCCESSFUL OVER THE LAST 10 YEARS. IN FACT, WE CELEBRATED OUR 10-YEAR ANNIVERSARY OF THAT PROJECT THIS YEAR. THE 27 ALBUM WILL BE RELEASED IN LATE JANUARY, AND JUST PRIOR TO THE AIRING OF THE 2027 LOVE IT MUSIC NOW TV SPECIAL THAT KCBB WILL BE DOING THE WORK. WORK WILL START ON THE 28 ALBUM IN LATE SPRING OF 27 WITH FUNDRAISING EFFORTS AND PROMOTING SONG SUBMISSIONS. WE ARE ABLE TO DO A LOT OF THAT PROJECT THROUGH SPONSORSHIP FUNDS, WHICH IS REALLY NICE THAT THE COMMUNITY SUPPORTS THAT. WE ALSO WILL CONTINUE TO SERVE AS FISCAL AGENT FOR 4TH ON BROADWAY FOR 2027. WE DID GET A THREE-YEAR COMMITMENT FROM HEB, THANKS TO CHRISTY, AND SO THAT WILL END NEXT YEAR IN 27. HOPEFULLY THEY WILL RENEW. SO CIVIC LUBBOCK HAS ALSO BUDGETED $25,000 OUT OF THEIR BUDGET TO RECEIVE MONEY FOR THAT PROJECT. SO THE EVENT HAS BEEN SELF-SUSTAINING THROUGH GRANTS AND CORPORATE SPONSORSHIPS. WE HAD REALLY GREAT CORPORATE SPONSORSHIPS THIS YEAR AS WELL AS LAST YEAR. AND THEN THERE'S REVENUES THAT ARE ACTUALLY GENERATED FROM THE EVENT ITSELF THROUGH COKE SALES AND VENDOR FEES AND PARADE FEES AND THINGS LIKE THAT. WE ARE ALSO HAVE SUBMITTED GRANT APPLICATIONS. WE RECEIVED A $30,000 GRANT ALREADY, AND THEN WE ARE WAITING ON ANOTHER GRANT THAT WE'LL HOPEFULLY GET THAT WE'LL FIND OUT IN AUGUST FOR THAT. SO THEN ALSO WE DO OUR WEST TEXAS WALK OF FAME INDUCTION. THAT WAS RECENTLY ANNOUNCED ON THE NEWS AS FAR AS WHO OUR INDUCTEES ARE. THAT EVENT WILL BE OCTOBER THE 8TH, 2026 IN THE CIVIC CENTER THEATER. AND THE INDUCTEES THIS YEAR ARE EDUCATOR, AUTHOR, AND COMPOSER, DR. SUSAN BRUMFIELD, VISUAL ARTIST, JIM EPLER, COWBOY SONGSTER AND PERFORMER, ANDY HEDGES, PRODUCER AND DIRECTOR, STEVE MOSS, AND AN INSTRUMENTAL GROUP FROM THE LATE 50S, EARLY 50S, THE STRING ALONGS. SO WE HOPE THAT YOU ALL WILL ATTEND AND CELEBRATE THESE ARTISTS AS WELL. SO OUR BUDGET IS PRETTY FLAT THIS YEAR. AND SO IF YOU HAVE ANY QUESTIONS ABOUT IT, DO BE GLAD TO ANSWER. ANY QUESTIONS? MS. KEY, COULD YOU EXPLAIN JUST A LITTLE BIT, IF YOU LOOK AT THESE FIGURES, THE INCOME FROM SELECT-TO-SEAT GRANTS, SPECIAL PROJECTS, AND OTHER INCOME HAS FALLEN OFF SINCE 2425 TO LAST YEAR AND THEN AGAIN FOR THIS YEAR'S, WHAT ACCOUNTS FOR THAT? OKAY, CAN YOU TELL ME WHICH ONES AGAIN? I'M SORRY? SELECT-TO-SEAT INCOME, GRANT SPECIAL PROJECTS INCOME, AND OTHER INCOME FROM 2425 TO LAST YEAR AND THIS YEAR. OKAY. ON THE SELECT-TO-SEAT REVENUE, AGAIN, THAT IS REALLY DEPENDENT UPON THE NUMBER OF EVENTS THAT COME IN. A LOT OF OUR REVENUES FOR SELECT-TO-SEAT COME THROUGH EVENTS THAT ARE AT THE UNITED SUPERMARKETS ARENA. SO IF THEY HAVE MORE SHOWS, WE DO BETTER. IF THEY HAVE MAYBE LESS SHOWS, WE MIGHT NOT DO AS GOOD. SO IT REALLY IS CYCLICAL FOR THAT PARTICULAR BUDGET BECAUSE IT IS TOTALLY DEPENDENT UPON THE NUMBER OF EVENTS THAT UTILIZE THE SURVEY. SO ARE WE SEEING FEWER EVENTS IN LUBBOCK? IS THAT WHAT THIS REPRESENTS? WELL, IT MAY NOT BE. IT COULD BE A COMBINATION OF, I DON'T KNOW THAT IT'S FEWER, BUT IT MAY BE LESS ATTENDANCE OR MORE ATTENDANCE. I MEAN, IF YOU HAVE SEVERAL SOLD-OUT SHOWS, THEN IT'S GOING TO BE, YOU KNOW, A PRETTY GOOD YEAR. BUT THEN THERE ARE OTHER SHOWS [02:45:01] THAT MAY NOT GENERATE AS MUCH ATTENDANCE. BUT I THINK WE'RE, I CAN'T REALLY SPEAK FOR IF WE'VE GOT, IF THEY'RE HAVING MORE OR LESS. I JUST KNOW THAT IT KIND OF IS WHAT IT IS WHEN THE YEAR IS OVER, SO. AND TELL ME, WHAT IS THE OTHER INCOME? WHAT ACCOUNTS FOR THE OTHER INCOME? OKAY, THAT IS, WE BUDGET, THAT WAS WHAT WE BUDGET FOR OUR LOCAL GRANT PROGRAM. AND THEN IT'S ALSO REVENUE FROM BINGO THAT HELPS FUND SOME OF OUR PROJECTS AS WELL. AND SO BINGO IS KIND OF GOING DOWN. SO THAT'S WHY THAT WENT DOWN A LITTLE BIT. OKAY. ALL RIGHT. ANY QUESTIONS? COUNCILWOMAN MARQUINE IS GOING TO SEE YOU. IT'S NOT SO MUCH A QUESTION, BUT PARTIALLY, WE ALSO HAVE COMPETITION. I MEAN, FOR EXAMPLE, THE GEORGE STRAIT CONCERT, WHICH WAS EXCELLENT AND WAS VERY GOOD FOR THE CITY. WE DIDN'T DO TICKET SALES. NORMALLY, THAT WOULD HAVE BEEN A, I MEAN. WELL, WE DON'T DO SHOWS FOR THE STADIUM. RIGHT, RIGHT. WE JUST, YEAH, WE JUST DO IT FOR THE ARENA. WELL, MAN, LET'S TALK THEM INTO ANOTHER CONCERT AND WE NEED TO DO TICKET SALES. BUT THAT'S PART OF IT IS YOU ALSO HAVE THE BUDDY HOLLY PERFORMANCE HALL. SO THERE IS, THERE'S A LOT, THERE'S A LOT GOING ON IN LEVITT FOR SURE, WHICH IS GREAT. IT'S GREAT FOR THE COMMUNITY TO HAVE SO MANY GREAT EVENTS GOING ON. BUT THE ARTS ARE STRONG AND THEY HELP TO BRING A LOT OF REVENUE INTO THE CITY, SO. THEY HAVE A HUGE ECONOMIC IMPACT ON THE CITY FOR SURE. SO THANK YOU FOR ALL OF YOUR EFFORTS. SURE. THANK YOU. THANK YOU. IS THAT IT? THANK YOU. ALL RIGHT. MR. ATKINSON? OKAY. WE'RE GOING TO SWITCH THE INPUTS BACK OVER TO HERE. COUNCIL WILL BE BACK ON PAGE 49 IN YOUR PACKET. WE'RE IN THE CEMETERY NOW. LET EVERYBODY GET TURNED OVER TO THAT. THANK YOU, LAUREN. YOU PLUG IN THE RIGHT THING AND IT SEEMS TO DO THE RIGHT THING. Y'ALL HAVE SEEN MY LUCK WITH TECHNOLOGY OVER THE LAST MONTH. OKAY. HERE WE GO. BEFORE I GET INTO THE NUMBERS, COUNCIL, I WANT TO KIND OF SET A STAGE, SO TO SPEAK, FOR THIS. SO, AS YOU PROBABLY KNOW, THE LUBBOCK CEMETERY PREDATES LUBBOCK BY NEARLY 20 YEARS. INCREDIBLY HISTORIC. IT IS THE LARGEST MUNICIPALLY OWNED AND OPERATED CITY IN THE STATE OF TEXAS. IT IS HUGE. THERE ARE ALL KIND OF INCREDIBLE THINGS OUT THERE. AND GENERATIONS AND GENERATIONS OF LUBBOCKITES THAT ARE BURIED. IT ALSO SERVES AS THE CEMETERY FOR THE UNCLAIMED BURIALS. OF COURSE, THOSE ARE DONE THROUGH THE COUNTY, BUT THEY'RE DONE AT THE LUBBOCK MEMORIAL CIVIC CENTER. THE CIVIC CENTER FOR YEARS HAS BEEN SUBSIDIZED BY THE GENERAL FUND, BUT THAT SUBSIDY IS GROWING. AND IT'S GROWING PRETTY RAPIDLY. PRIMARILY, IT IS THE COST OF CAPITAL. SO, YOU MAY REMEMBER WE'VE BUILT A NEW PUMP STATION. WE'RE IN THE PROCESS OF DOING A NEW IRRIGATION SYSTEM AND ALL THOSE THINGS. THAT IS CAUSING THE CEMETERY'S BUDGET TO RUN A LITTLE BIT FARTHER IN THE NEGATIVE EACH YEAR. SO, I'LL GIVE YOU AN EXAMPLE. IN FISCAL 23, OUR GENERAL FUND TRANSFER IS JUST A LITTLE OVER $300,000. IN FISCAL 24, $335,000, WE ACTUALLY MADE IT THROUGH ONE YEAR WITHOUT A GENERAL FUND TRANSFER. BUT THEN LAST YEAR, IT WAS $554,000. SO, YOU'RE SEEING THE ROLL-ON OF ALL OF THAT CAPITAL THAT'S BEING COVERED. AND THE BUDGET I'M ABOUT TO SHOW YOU IS $854,000. SO, THERE'S TWO CAUSES TO THIS. PRIMARILY, IT IS CAPITAL. BUT SECONDARILY, IT IS THE RATES AND THE FEES THAT WE CHARGE. THE CEMETERY'S NOT DIFFERENT THAN ANY OTHER OPERATION THAT YOU HAVE. THE OPERATING COST HAS GONE UP, AND THE REVENUE HAS NOT BEEN ADJUSTED ACCORDINGLY. I'M NOT SUGGESTING TO MOVE IT TO FULL REPLACEMENT. BUT I WANT TO KIND OF SET THAT STAGE SO WE CAN WALK THROUGH THE BUDGET. SO, HERE IS WHAT WE HAVE FOR YOUR REVENUE SUMMARY. SO, A YEAR AGO, THE $1.415, NEW BUDGET $1.582. [02:50:07] WE ARE ALSO NOW IN THIS YEAR, AND I'VE DONE THIS JUST TO MINIMIZE THE INCREASE IN THE GENERAL FUND TRANSFER. WE'RE GOING TO PROPOSE TO SPEND DOWN THE LAST OF THE RESERVE FUND THAT THE CEMETERY HELD. OKAY? SO, THAT RESERVE WILL GO TO ZERO, AND YOU'RE GOING TO KEEP CARRYING THESE COSTS UNTIL WE GET PAST THE CAPITAL INJECTION, AND THEN POTENTIALLY, OVER A PERIOD OF TIME, SOME REVENUE ADJUSTMENTS. SO, THIS YEAR, WHAT YOU'RE SEEING IS ABOUT $177,000 OUT OF AVAILABLE RESERVES, AND THAT ENDS IT. THERE'S NOT A RESERVE AFTER THAT. SO, THIS FUND DOES NOT HAVE A POLICY LEVEL. IT DOESN'T HAVE DEBT AND SO FORTH IN THE PAST ASSOCIATED WITH IT. SO, EXPENSE. $1.415 VERSUS $1.582. AGAIN, THIS IS BALANCED. YOUR MAINTENANCE AND OPERATIONS HAS GONE UP A LITTLE BIT WITH OUR MOWING CONTRACT. OF COURSE, I DON'T KNOW ABOUT Y'ALL, BUT I'VE GONE TWO YEARS NOW WITHOUT A COMPLAINT ON THAT. THEY'RE DOING A GOOD JOB, BUT THAT COSTS MONEY, YOU KNOW, TO DO. THE DEBT SERVICE PAYMENT, IT'S GOING DOWN JUST SLIGHTLY. IT'LL STABILIZE. BUT, AGAIN, IT'S TRYING TO COVER THE CAPITAL COST TO GET THAT CEMETERY BACK TO WHERE IT NEEDS TO BE. ALL RIGHT. SO, FEE CHANGES. WE HAVE CHECKED AND LOOKED AT THE PRIVATELY OPERATED CEMETERIES IN AND AROUND LUBBOCK. IN A REALLY ROUGH NUMBER, WE OPERATE OUR CEMETERY AT BETWEEN ABOUT 40 AND 50 PERCENT OF WHAT THE COMMON CHARGES ARE ELSEWHERE. SO, YOU SEE ON HERE SOME PROPOSED CHANGES. SO, EVERYWHERE THAT IT'S THE COUNTY, THOSE, OF COURSE, ARE THOSE UNCLAIMED REMAINS THAT THEY HAVE TO DEAL WITH. SO, YES, WE'VE GONE UP AND TRIED NOT TO GO UP VERY FAR. CARRY DOWN INTO YOUR GRAVE SERVICES, YOUR MISCELLANEOUS FEES, THE MAUSOLEUM SALES. OOPS, THE MAUSOLEUM SALES, WHICH ARE AT THE BOTTOM. TRYING TO EXPAND THAT WHERE WE CAN SEE THEM. WE'VE HISTORICALLY RESISTED INCREASING THOSE FEES, AND I THINK FOR GOOD AND VALID REASONS. I'M SUGGESTING WE'RE PROBABLY PAST THAT POINT UNLESS WE WANT TO MAKE A CONSCIOUS DECISION THAT THIS IS GOING TO SHIFT MORE AND MORE EACH YEAR TO THE GENERAL FUND. TO THE GENERAL FUND, WE'RE GOING TO, I THINK IN REALITY, YOU'RE GOING TO NEED TO DO BOTH. WE'RE GOING TO HAVE TO HAVE A SEQUENTIAL SERIES OF INCREMENTAL INCREASES. YOU'RE STILL GOING TO INCREASE A LITTLE BIT ON WHAT THE GENERAL FUND IS CARRYING, BUT IDEALLY, WE'LL GET PAST ALL OF THIS. THAT GENERAL FUND WILL START DROPPING BACK DOWN TO WHERE IT WAS. THIS IS NOT A POPULAR THING TO TALK ABOUT, CHANGING FEES, AND I UNDERSTAND THAT. BUT HELEN AND HER TEAM ON WASHINGTON HAVE DRAMATICALLY INCREASED THE MAINTENANCE LEVEL. WE HAVE CLEANED OUT DECADES' WORTH OF OLD TREES. WE'VE PUT IN NEW TREES. WE HAVE A MILLION-PLUS-DOLLAR IRRIGATION SYSTEM THAT'S COMING IN. AND FOR NOW, WE'RE PAYING FOR IT OUT OF THE GENERAL FUND. SO THE BIG THING, THE BIG NOTE THAT COMES OUT OF THIS IS WHAT YOU'RE SEEING ON THOSE PROPOSED FEES. YOU SEE THAT YOU'VE GOT OVER $2 MILLION THAT'S BEEN INVESTED IN THE IRRIGATION SYSTEM. THAT DOES INCLUDE THAT PUMP STATION THAT I SAID WE ROLLED THEM TOGETHER, AND WE'RE ADDING ANOTHER $100,000 TO IT. SO NOT ASKING FOR ANSWERS OR NODS FOR TODAY, JUST KNOW THAT PART OF THIS BUDGET IS INCREASING THIS. IF THIS ULTIMATELY MEETS WITH THE COUNCIL'S APPROVAL OR SOME VERSION THEREOF, I TRULY THINK YOU'RE GOING TO SEE IT AGAIN PROBABLY FOR TWO MORE YEARS. SO THAT WILL JUST BECOME A POLICY DECISION OF HOW MUCH WE WANT TO OFFSET AND HOW MUCH WE WANT TO CARRY IN THE GENERAL FUND. BUT YOU ARE STILL AT JUST BARELY 50% OF THE MARKET, MAYBE JUST A HAIR OVER ON SOME OF THE LINES. BUT YOU'RE STILL A VERY INEXPENSIVE ALTERNATIVE. OKAY. ANY QUESTIONS ON THAT? OKAY. THEN WE WILL GO TO THE CIVIC CENTER. MR. COUNCILMAN HARRIS. YES, SIR. I JUST WANTED TO MAKE A FUNNY REMARK THAT THE COST OF LIVING GOES UP EVEN AFTER YOU'RE DEAD. IT DOES. I GUESS WE COULD JUST ENCOURAGE EVERYBODY TO BUY A PLOT OUT THERE. I COULD SAY SOMETHING THAT IS BEST THAT I DO NOT. IF YOU DON'T HAVE A PLOT, GO BUY ONE. [02:55:01] SO, NO, IT'S ALL GOOD. ALL RIGHT. MAYOR, CAN I GO TO THE CIVIC CENTER NOW? OKAY. CIVIC CENTER. PRETTY FLAT ACROSS THE REVENUE, 3.88 TO 3.95. WE ARE SEEING A DEMAND FOR OUR EVENTS INCREASE, AND THE LITTLE CAPITAL WE'RE HOLDING IS CONTINUING TO PAY US ON INTEREST. MISCELLANEOUS REVENUE, THAT IS THE FACILITY IMPROVEMENT FEE AND RENTING EQUIPMENT. REMEMBER, A YEAR AGO, WE REALLY WENT THROUGH AND KIND OF RESTRUCTURED HOW WE RENT TABLES AND CHAIRS AND PIECES AND PARTS FOR EVENTS. THAT'S WORKED. THAT'S WORKED WELL. THE HOT COMING IN IS GOING TO BE UP JUST SLIGHTLY. DEBT SERVICE IS GOING DOWN, AND WE'RE ALSO GOING TO DECREASE THE SPEND OUT OF AVAILABLE RESERVES. EXPENSE, YOU SEE THE SAME NUMBERS ON THE LEFT AND ON THE RIGHT, AND THEN VERY, VERY MINOR CHANGES AS YOU'VE MOVED FORWARD. THE CAPITAL BUDGET FOR THIS YEAR DOES NOT HAVE NEW MONEY PROPOSED. WE FUNDED THOSE THREE PROJECTS THAT YOU SEE ON THE LIST IN THE PAST. PART OF THAT PARKING LOT REPAIR, THAT HAS BEEN PAID OUT. WE DID HAVE TO GO IN, AND YOU ALL SAW IT IN EARLY JULY, WHERE ALL THE ADA PARKING AND EVERYTHING IS IN FRONT OF THE NORTH DOOR. SO WE GOT THAT DONE. YOU HAVE MONEY IN YOUR MAINTENANCE FUND AND YOUR EQUIPMENT FUND. AND, AGAIN, ALL REALLY POINTED TOWARDS WHAT ARE THE POSSIBILITIES OF OUR FUTURE PROJECT TO CONVERT THIS INTO A CONVENTION CENTER. SO WE'RE NOT LETTING ANYTHING COME UNWOUND OR COME APART, BUT WE'RE REALLY TRYING TO HOLD THE POWDER DRY OVER THERE. SO THERE ARE SOME FEE CHANGES. COME ON. THERE ARE SOME FEE CHANGES, AGAIN, THAT ARE PROPOSED. IN LISA THOMASON AND HER CREW'S OPINION, IT STILL KEEPS US WELL WHERE WE NEED TO BE, WHAT WE'VE DONE IN THE PAST. WE'RE ACTUALLY SEEING INCREASED DEMAND, NOT DECREASED. THERE'S SOME MORE THAT WE'LL FOLLOW THROUGH ON THE NEXT PAGE. AND YOU'LL NOTICE THAT SOME OF THESE ARE TAKING FEES OUT. AGAIN, STILL TRYING TO BE REALISTIC ABOUT WHAT WE'RE DOING AND CHARGE WHERE WE NEED TO CHARGE. GO BACK. SO YOU'LL SEE THIS IN LATER BUDGETS, BUT I WANT TO MAKE A COMMENT AS IT RELATES TO YOUR HOT FUNDS. SO THE HOT FUNDS THAT GO TO YOUR CIVIC CENTER REALLY DO TWO THINGS. CAPITAL. AND NUMBER TWO, IT OFFSETS THE OPERATING LOSS. SO TODAY, YOUR GENERAL FUND, YOUR TAX DOLLARS, DO NOT COVER THE OPERATING LOSS AT THE CIVIC CENTER. THAT'S ALL CARRIED BY HOT TAX. AS WE'RE LOOKING TOWARDS THE CONVENTION CENTER PROJECT, SOME PORTION OF THAT EXISTING HOT MONEY THAT YOU GET TODAY, SO THIS IS NOT THE PART WE TALKED ABOUT THAT'S SUBJECT TO AN ELECTION, SOME PORTION OF THAT CAN APPROPRIATELY BE USED AS ANOTHER REVENUE STREAM TO HELP SUPPORT YOUR DEBT SERVICE. SO IF YOU'LL THINK BACK, ESPECIALLY ON TO THE VISIT LUBBOCK AND LUBBOCK SPORTS NUMBERS, THOSE ARE ALL HOT TAX FUNDED. THEY LOOK TO BE VERY FLAT OR JUST VERY SLIGHTLY DOWN, $40,000 OR $50,000. WE'VE BUILT ALL THE HOT SUPPORTED BUDGETS THIS YEAR ON THE PREMISE OF TAKING THE GROWTH IN THE HOT YEAR OVER YEAR AND KIND OF HOLDING THAT BACK AND THEN A VERY MINIMAL DECREASE. AND I THINK YOU CAN GET TO THAT $1 MILLION REVENUE TARGET AND HAVE EVERYBODY ALSO RESTORED IN THE SECOND YEAR. IT EARLIER LOOKED LIKE IT WAS GOING TO BE A TWO-YEAR HIT AND A THIRD-YEAR RESTORE. I THINK WE'VE HAD ENOUGH GROWTH THAT IF YOU CAPTURE THE GROWTH TO YOUR FUTURE PROJECT, MINOR DECREASE TO OUR PARTNERS, LIKELY THEY'LL BE FULLY RESTORED IN THE SECOND YEAR, THE NEXT YEAR. AND I'VE DISCUSSED THAT IN DETAIL WITH MR. OSBORNE AND HIS CREWS. SO JUST KNOW THAT THAT'S WHY THOSE NUMBERS LOOKED AS FLAT AS THEY ARE BECAUSE LATER YOU'RE GOING TO SEE WHERE HOT TAX WENT UP. OKAY? ALL RIGHT. QUESTIONS ON CIVIC CENTER? WE'LL GO TO MEADOWBROOK. SO, AGAIN, THIS IS ONE THAT HAS HAD PRETTY SUBSTANTIAL CHANGES. THE OPERATORS HAVE CHANGED. THE COURSE IS TRULY, IT'S AS GOOD AS I'VE EVER SEEN IT. AND IT IS DOING WELL. SO, COUNSEL, YOU APPROPRIATED CAPITAL DOLLARS TWO YEARS AGO TO KIND OF HELP MAKE THAT SWITCH. [03:00:04] THEY'RE ACTUALLY GOING TO START PAYING THAT BACK EARLY TO YOUR GENERAL FUND. SO, LET ME DRAW YOUR ATTENTION. THIRD LINE DOWN. GREEN FEES. WE BUDGETED ONE AND A QUARTER FOR THIS YEAR. 28% INCREASE FOR NEXT YEAR. YEAH. YES, THE UTILIZATION AND I THINK THE SATISFACTION WITH THOSE TWO COURSES HAS GONE WAY, WAY UP. PRO SHOP SALES ARE UP. POOL CARTS UP. RANGE SALES. MISCELLANEOUS, WHICH IS EVERYTHING GOING ON IN AND AROUND, YOU KNOW, THE CLUBHOUSE. IT IS DOING TREMENDOUS. AS WE'RE USING IT MORE, AS THEY ARE USING IT MORE AND CONTINUING TO IMPROVE IT, SUPPLIES AND MAINTENANCE AND THOSE THINGS ARE GOING UP AS WELL, INCLUDING THAT MANAGEMENT FEE. THAT CONTRACT IS STRUCTURED TO WHERE THE BETTER THEY DO AT THE COURSE, THE BETTER, YOU KNOW, THEY WILL GET. BUT LOOK AT YOUR DEPARTMENT LEVEL YEAR OVER YEAR. 2.85 MILLION IN FUNDING VERSUS NEXT YEAR, 3.75 IN FUNDING. AND ABSOLUTE CONGRATULATIONS TO THIS GROUP. THEY ARE KNOCKING IT OUT OF THE PARK. ANOTHER WAY TO LOOK AT IT, AND RARE FOR US, THIS IS AN EARNED INCOME FUND. AND IT IS EARNING ITS OWN INCOME. IT IS DOING VERY WELL. YOU SEE THE MONEY THAT WAS PUT IN PRIOR FOR THE CAPITAL IMPROVEMENTS. AGAIN, THAT PAYBACK IS COMING TO YOU EARLY. AND WE'LL MOVE TO INTERNAL SERVICE. OR, MAYOR, IF YOU WANT A QUICK BREAK, WHATEVER YOU ALL WOULD LIKE TO DO. ANOTHER SHORT BREAK. ALL RIGHT. LET'S GET GOING AGAIN, AND I THINK WE CAN GO QUICKLY THROUGH WHAT'S LEFT HERE. ALL RIGHT. WE'RE GOING TO MOVE OVER NOW AND START ON INTERNAL SERVICE FUNDS. LET'S GO TO PAGE 64 IN YOUR HANDOUT FOR TODAY. FIRST ONE IS THE FLEET SERVICES. VERY FLAT BUDGET, 18.425 VERSUS 18.473. WE CAN CARRY ACROSS THAT. FLEET SERVICES IS OBVIOUSLY AN INTERNAL FUND. THEY CHARGE OUT, PULL BACK IN, AND THEY MANAGE ALL OF OUR ACQUISITIONS, MAINTENANCE, REPAIR, ALL OF THOSE TYPES OF THINGS. THE EXCLUSIONS TO THAT ARE THE FIRE DEPARTMENT AND THE AIRPORT. SO THOSE EACH HAVE THEIR OWN SHOPS. OTHER THAN THAT, IT IS IN HERE. MOVE OVER TO THE BENEFITS, AND I'M GOING TO GO QUICKLY, COUNCIL. SO IF I JUMP PAST SOMETHING, PLEASE STOP ME. BENEFITS DEPARTMENT, CURRENTLY AT 47.1, MOVING TO 48.8. WE ARE PULLING DOWN A FEW LINE ITEMS, SUCH AS SUPPLIES, OTHER CHARGES. WE BUDGETED LAST YEAR TO BUY SOME COMPUTER EQUIPMENT. THOSE DOLLARS DON'T CARRY OVER ONCE WE BUY IT. WE TAKE NEXT YEAR'S BACK OUT. THE SCHEDULE CHARGES ARE INCREASING SLIGHTLY DUE TO HIGHER MEDICAL AND PRESCRIPTION CLAIMS, AND THE REIMBURSEMENTS ARE DECREASED DUE TO THE VENDOR FORECAST. THOSE ARE THE REIMBURSEMENTS WE GET BACK THROUGH THE HEALTH PLAN ADMINISTRATION. INFORMATION TECHNOLOGY, 12.7 PRIOR YEAR, 12.89, NEARLY 12.9 FOR THE NEWER YEAR. PROBABLY THE CHANGES THAT YOU'LL PICK OUT THROUGH THERE THAT ARE BIG NUMBERS ARE GOING TO COME THROUGH THE MAINTENANCE. THAT IS LARGELY GOING TO BE CYBER AND LICENSING CHARGES FOR OUR SOFTWARE. PROFESSIONAL SERVICES, THIS IS SUPPORT THAT GOES AGAINST THE SOFTWARE THAT WE HAVE, AND WE ARE PULLING DOWN THE CAPITAL OUTLAY BECAUSE WE HAD A ONE-TIME EXPENSE LAST YEAR, AND THEN, OF COURSE, WE PULL THOSE DOLLARS BACK OUT. ANY QUESTIONS ON THAT? AND AGAIN, YOU DON'T SEE REVENUE HERE BECAUSE WHATEVER THE TOTAL IS IS WHAT IS CHARGED BACK OUT TO THE VARIOUS DEPARTMENTS. GIS AND DATA SERVICES, WE HAVE ONE OF OUR ANALYSTS THAT IS NOW PRIMARILY CHARGED AGAINST THE LUBBOCK METROPOLITAN PLANNING ORGANIZATION. WE HAVE UPPED THE PROFESSIONAL SERVICES, AND THIS IS FOR SOME HELP ON OUR DATABASES THAT WE DO. I THINK MOST EVERYONE ON THE DAIS IS AT LEAST A FREQUENT USER OF OUR GIS SYSTEM HERE. IT IS A POWERFUL TOOL THAT ALL OF THE DEPARTMENTS USE. TELECOMMUNICATIONS. THERE IS AN ODDITY [03:05:02] IN THIS ONE, LARGELY IN THAT PROFESSIONAL SERVICES LINE ITEM. SO LET ME GO TO THE VERY BOTTOM BULLET, AND I'LL EXPLAIN WHAT THOSE ARE. OTHER CHARGES IS INCREASED DUE, NUMBER ONE, TO HIGHER CELL DATA USAGE. THAT IS PRIMARILY THE POLICE DEPARTMENT. AND THE REPLACEMENT OF EOL, END-OF-LIFE COPPER LINES, REPLACING THEM WITH VOIP, OR VOICE OVER INTERNET PROTOCOL. SO ALL OF YOUR MAJOR TRADITIONAL TELEPHONE CARRIERS ARE PHASING COMPLETELY OUT OF THE COPPER WORLD, AND EVERYTHING WILL GO INTO BASICALLY THE INTERNET WORLD. THERE IS SUCH A TANGLED WEB OF OLD COPPER THAT SERVES OLD FACILITIES AND OTHER THINGS THAT WE HAVE. WE'VE GOT TO GET ALL THOSE IDENTIFIED. BE SURE THAT IF WE HAVEN'T ALREADY, THAT WE ARE REPLACING THEM ON OUR VOIP SYSTEMS. ULTIMATELY, THIS WILL BE A COST SAVINGS, BUT IT'S LIKELY NOT GOING TO BE A COST SAVINGS UNTIL THE SECOND YEAR. SO COPPER LINES THAT WE STILL HAVE ARE ACTUALLY MORE EXPENSIVE THAN ANYTHING WE DO OVER VOICE OVER INTERNET. SO THIS IS A CHANGE BEING PUSHED UPON US. IT WILL ULTIMATELY BE TO OUR BENEFIT. IT'S GOING TO COST US A LITTLE BIT IN THE COMING YEAR. QUESTIONS? RADIO SHOP? BIGGEST ONE I WOULD POINT OUT HERE, YOU SEE THE TOTAL CHANGE FROM $1.77 MILLION TO $2.5 MILLION. THAT IS LARGELY BECAUSE WE ARE CONTINUING THE DEPLOYMENT OF THAT RADIO SYSTEM EXPANSION. REMEMBER THE THIRD TOWER, ALL OF THAT THAT WE'RE DOING. THE INVESTMENT POOL. SO THIS IS WHAT IS MANAGING ALL OF THE CITY'S INVESTMENTS, BOTH CASH AND LONGER-TERM INVESTMENTS. COMPENSATION IS UP SLIGHTLY BECAUSE OF MORE ALLOCATION OF EMPLOYEE TIME. NOT IN THIS YEAR, BUT PROBABLY IN THE FOLLOWING YEAR, YOU'LL SEE PROFESSIONAL COME BACK DOWN AS WE WORK OUT OF AS MUCH THIRD-PARTY ASSISTANCE AS WE HAVE BEEN DOING. MR. JIMENEZ, MS. MCGARR, AND SOME OTHERS ARE REALLY, REALLY GETTING GOOD AT DOING THIS. THE PRINT SHOP? WE HAVE HAD A SLIGHT REALIGNMENT IN SALARY. THE SCHEDULED CHARGES ARE GOING TO GO DOWN BECAUSE OF IT AND POSTAGE. WE'RE LIKE EVERYBODY ELSE, THERE'S JUST, OTHER THAN WHAT WE HAVE TO DO BECAUSE OF THE REGULATORY OR STATUTORY REQUIREMENT, NOBODY MAILS STUFF. THEY JUST DON'T. SO THAT IS GOING DOWN. REMEMBER, TWO YEARS AGO, WE BOUGHT SOME LARGE, BIG PRINTERS, AND WE'VE BEEN ABLE TO IN-HOUSE MORE AND MORE OF THOSE SERVICES. THIS IS A VERY SMALL GROUP, AND THEY DO A TON OF WORK FOR US. THE CITY'S WAREHOUSE, COMPENSATION IS HITTING THIS, REMEMBER I TOLD YOU IT WAS OUT OF DEPARTMENTS AND INTO FUNDS, THIS IS A FUND, SO YOU'RE SEEING IT SEPARATE HERE. WE'VE HAD OUR SCHEDULED CHARGES GO DOWN FOR FUEL, PROPERTY, AND LIABILITY INSURANCE, AND THE DEBT INSURANCE, OR THE DEBT SERVICE HAS ALSO GONE DOWN. SLIGHT INCREASES IN SUPPLIES. RISK MANAGEMENT, WE ARE ADDING A PART-TIME POSITION. THIS IS WHERE YOU SEE THE SLIGHT INCREASE THAT WE TALKED ABOUT DURING PRIORITIES ON YOUR HEALTH PLAN. FLEET MAINTENANCE IS DOWN. THEIR FUEL IS GOING TO GO UP JUST SLIGHTLY. THE BIGGER CHANGE IN THE PROFESSIONAL SERVICES, REMEMBER, COUNCIL APPROVED US MOVING TO A SELF-INSURED WORKERS' COMPENSATION PROGRAM. NOW, IT'S HARD FOR ME TO GIVE YOU YEAR OVER YEAR BECAUSE INSURANCE YEAR IS CALENDAR. CITY BUDGET YEAR IS FISCAL, SO THERE'S AN OVERLAP. AT THE MOMENT, ALL THE INDICATORS ARE IT'S DOING WHAT WE SAID IT WOULD DO. WE WILL CONTINUE TO WATCH IT. IF THAT'S NOT THE BETTER WAY TO DO IT, WE'LL GO BACK INTO THE MARKET WHEN IT'S TIME. TO DO SO. INTERNAL SERVICES CAPITAL FOR THE YEAR. I MENTIONED EARLIER SOME OF THE TRANSFER STATION EQUIPMENT. YOU SEE THAT BEING PICKED UP HERE. THAT'S INTERNAL TO THE TRANSFER STATION. COUNCILMEMBER WILSON, I THINK MAYBE THE ONLY ONE ON THE DAIS THAT WENT WITH US TO THE ONE IN DALLAS. THESE ARE THE BIG GRABBERS THAT TAKE IT OUT OF THE FLOOR, PUT IT IN THE TRUCK, COMPACT IT, GET THE WEIGHTS RIGHT, AND MOVE ON. YOU SEE OUR VEHICLE REPLACEMENT SCHEDULE FOR THE YEAR, $8.7 MILLION HERE. THAT IS THE CASH VEHICLES. THAT'S INCLUSIVE OF ALL THE DIFFERENT FUNDS. AND THEN YOU SEE VEHICLE REPLACEMENT ON TAX NOTES, $10 MILLION. WE'RE BUYING THAT DOWN JUST A LITTLE BIT WITH SOME OLD CASH. THREE FIRE ENGINES AND A COUPLE OF LARGE PIECES, I BELIEVE, AT THE LANDFILL. [03:10:01] BUT THE FIRE ENGINES, THE LESS EXPENSIVE VERSIONS, $1.5 MILLION A COPY. SO WE'VE GOT THAT. WE TALKED ABOUT THE FUEL SITE THAT WOULD BE BUILT AT THE TRANSFER STATION. YOU SEE THAT THERE. ANY QUESTIONS ON INTERNAL SERVICE CAPITAL? I JUST HAVE A QUESTION JUST ABOUT THE INTERNAL SERVICE FUNDS OVERVIEW IN GENERAL. IF YOU LOOK AT PAGE ONE ON THAT. SO YOU HAVE THE BUDGETS FOR ALL THE DIFFERENT DEPARTMENTS THERE. AND, OF COURSE, THOSE ARE JUST THE EXPENSE ITEMS FOR THOSE. YES, IN THE BOOK, YEAH. FIRST PAGE OF THE INTERNAL SERVICE FUNDS. OKAY, I'M WITH YOU. OKAY. SO THOSE ARE ALL THE DEPARTMENTS YOU HAVE THAT WE'VE GONE THROUGH WHEN WE SHOW THE EXPENSES. NO REVENUE FOR THEM. THEN YOU GO DOWN HERE TO CHARGES, ALL RIGHT? THE $47 MILLION. DOES THE $47 MILLION MATCH UP WITH THE EXPENSES FOR ALL THOSE DEPARTMENTS AS WELL? WELL, IS THE $47 MILLION WHAT YOU GET IN CHARGES TO OTHER DEPARTMENTS FOR THESE SERVICES? YES. THAT'S THE FLOW IN OR IN THE REVENUES? THE REVENUES. OKAY. DO THOSE MATCH UP PRETTY MUCH? THEY ARE SUPPOSED TO. THEY'RE SUPPOSED TO. OKAY. I MEAN, THE DIFFICULTY OF LOOKING AT IT IS LIKE YOU'VE GOT A PRINT SHOP BUDGET, BUT YOU DON'T HAVE A PRINT SHOP CHARGE, FOR INSTANCE, OR ANYTHING. IT FALLS UNDER SOMETHING ELSE, I GUESS. SCHEDULED CHARGES, SO WHEN YOU'RE LOOKING AT THE PEOPLE WHO RECEIVE THESE SERVICES, THE FEE FOR THAT IS IN THEIR SCHEDULED CHARGES. OKAY. AND WE WILL DOUBLE CHECK, BUT YES, THIS AMOUNT SHOULD EQUAL WHAT WE'VE JUST GONE THROUGH, AND THESE ARE OPERATING BUDGETS. RIGHT. THIS IS THEIR REVENUES, THOSE CHARGES. AND WOULD THAT $47 MILLION APPEAR IN EACH OTHER DEPARTMENT'S BUDGET AS A SCHEDULED SERVICE? IT'S ROLLED UP INTO THEIR SCHEDULED CHARGES. AND SO IF WE ADDED ALL THOSE UP, IT SHOULD EQUAL THE $47 MILLION AS WELL, APPROXIMATELY. IF YOU ADD UP ALL THE SCHEDULED CHARGES, IT WILL BE LARGER THAN THAT, BECAUSE YOU'RE ALSO GOING TO HAVE UTILITIES AND A FEW OTHER THINGS LIKE THAT IN THE SCHEDULED CHARGES. OH, RIGHT. IT'S NOT A ONE-TO-ONE. I REMEMBER ONE YEAR I HAD TROUBLE TRYING TO COORDINATE THOSE TWO THINGS. I THOUGHT THEY SHOULD MATCH UP, BUT THEY DON'T, BECAUSE OF OTHER CHARGES. AND NOT EVERY DEPARTMENT HAS THE SAME SET OF SCHEDULED CHARGES. IT'S LIKE THE CITY MANAGER DOESN'T HAVE A RADIO SHOP CHARGE. OKAY. WELL, MAYBE WE NEED TO GIVE YOU ONE. THEY DID, AND I GAVE IT BACK. YOU DON'T WANT TO KNOW WHAT A WALKIE-TALKIE COST US TODAY. OKAY. NOW, THAT WAS JUST ONE OF THE THINGS THAT WAS DIFFICULT FOR ME. AND THE RADIO SHOP PEOPLE ARE LAUGHING, BECAUSE I REALLY DID GIVE IT BACK. I SAID, NO, STOP. EVERYBODY WANTS A WALKIE-TALKIE? NO, OKAY. ALL RIGHT. A CHEAP ONE IS $3,500. OKAY. NOW YOU DON'T NEED ONE. ALL RIGHT. YEAH, THAT'S JUST, I WANTED TO EXPLAIN THAT. OKAY. VERY GOOD. OKAY. SPECIAL REVENUE FUNDS. PAGE 75 OF THE HANDOUT. OKAY. WE WILL START WITH YOUR TAX INCREMENT FINANCE ZONES, OR TIFS. WE CALL THEM TIFS, OR TIERS BY LAW. SO HERE'S THE FIRST. THIS IS YOUR CENTRAL BUSINESS DISTRICT TIF. WE'LL START KIND OF AT THE TOP THERE. CURRENT YEAR REVENUE OF $1.8 MILLION. BUDGET REVENUE, NEW YEAR, $2.6 MILLION. THE TWO PRIMARY CHANGES IN THAT. FIRST, THE INCREMENT HAS GROWN. SO THE REVENUE, WHICH IS WHAT WE WANT IT TO DO. WE WANT IT TO CONTINUALLY GET LARGER. THE INCREMENT HAS GROWN BY ABOUT $126,000. AND THEN THEY ARE USING $688,000 IN RESERVES. SO THAT GETS YOU YOUR $2.59 MILLION IN REVENUE. IF YOU GO DOWN TO THE BOTTOM OR THE MIDDLE OF THE PAGE, EXPENDITURES. A COUPLE OF THINGS, YOU KNOW, TO KIND OF HIGHLIGHT THERE. THE ADMINISTRATIVE COST FOR THE SALARY AND BENEFITS IS UP SLIGHTLY. THOSE ARE TIED TOGETHER WITH REVENUES. THEY'VE INCREASED THE DOLLARS AVAILABLE FOR THEIR SPECIAL PROJECTS. DEBT SERVICE IS PRETTY MUCH FLAT. IT'S DOWN JUST SLIGHTLY, BUT THAT'S HOW OURS WORKS. AND THEN A SMALL DECREASE TO THEIR CAPITAL FUNDS. SO YOU HAVE A BALANCED BUDGET WHEN YOU INCLUDE THE $688,000 IN RESERVES. COME DOWN TO THE BOTTOM. CURRENT YEAR, THERE'S $2 MILLION IN AVAILABLE RESERVES. WITH THE USE OF RESERVES NEXT YEAR, IT'S $1.33. AND YOU SEE IT START CLIMBING BACK UP OVER TIME. [03:15:07] HERE'S THEIR CAPITAL PROGRAM. THE UTILITY INFRASTRUCTURE GRANT PROGRAM. THAT HAS HELPED SEVERAL DOWNTOWN BUSINESSES. A COUPLE OF THEM ARE RIGHT OVER HERE, BASICALLY AT E AND BROADWAY. AND THEY'VE DONE ONE SOUTH OF THAT. AND THEN PUBLIC IMPROVEMENTS, $1.2 MILLION. TOTAL OF $1.25. REMEMBER THAT ONE OF THEIR MAIN PROJECTS THEY'RE DOING RIGHT NOW IS RELIGHTING DOWNTOWN. OKAY. HERE IS YOUR LARGER TIF MODEL. I'M SORRY. THIS IS THE BUSINESS PART, TIF. THAT'S WHY THE NUMBERS DON'T MATCH. HERE'S THE BUSINESS PART, TIF. TOTAL TAX COLLECTIONS ARE UP, BUT JUST SLIGHTLY. INTEREST EARNINGS ARE DOWN SLIGHTLY. SO IT'S $1.08 MILLION VERSUS $1.03 MILLION. CARRY DOWN THROUGH YOUR EXPENDITURES. THEY'RE PROPOSING $2 MILLION IN CASH-FUNDED CAPITAL PROJECTS. THEY'RE USING $997,000 IN AVAILABLE RESERVES, TAKING THEM TO A RESERVE BALANCE OF ROUGHLY 2.6. AND THEN IF THEY DON'T ADD CASH CAPITAL PROJECTS IN THE FUTURE, YOU SEE HOW THAT WILL GROW UP. THIS PARTICULAR TIF DOES NOT DO CAPITAL PROJECTS UNTIL THERE IS A NEED TO DO A CAPITAL PROJECT. SO AS LIDA LANDS PROJECTS OUT THERE, IF IT REQUIRES EITHER A ROAD EXTENSION, WATER, OR WASTEWATER, OR THE THREE BIG ONES THAT THEY DO, THEY'LL BUDGET AND DO THAT. THE $2 MILLION IS NORTHEAST HUNTER STREET SEWER LINES. NORTH OVERTON TIF, TAX REVENUE, THE INCREMENT, IS UP JUST SLIGHTLY. THEY HAVE A PRETTY SUBSTANTIAL RESERVE ACCOUNT, SO THEIR INTEREST EARNINGS ARE GOING UP. THE $65,000 RECEIVED AFTER THE FOURTH YEAR, THAT IS THE NORTH OVERTON HOTEL COMFORT CENTER GIVE BACK. THE 1% SURCHARGE AND THEN THEIR PORTION OF THE HOTEL-MOTEL TAX COLLECTIONS, THAT MONEY ACTUALLY GOES TO OFFSET DEBT SERVICE, AND THAT DEBT IS ABOUT OVER. SO THAT ALSO IS FREEING UP YOUR CURRENT LOCAL HOT. THERE'S TWO PIECES OF DEBT PAID OUT OF THE CURRENT LOCAL HOT. THIS IS THE BIG ONE, AND IT'S FOR THE COMFORT CENTER, AND IT'S ABOUT TO PAY OFF. 6.6 IN REVENUE, TOTAL EXPENDITURES OF 3.8, THUS INCREASING THE RESERVES BY 2.7. COUNCIL, IF YOU'LL NOTE, JUST LOOK OUT ACROSS 28 OUT TO 32, AND YOU CAN SEE HOW THOSE BEGIN TO GROW. SO YOU DON'T SEE THE HOTEL-MOTEL TAX COLLECTION CARRY OFF, BECAUSE ONCE THAT DEBT'S RETIRED, THAT'S BACK TO THIS COUNCIL THEN FOR YOUR REALLOCATION, WHICH SUPPORTS US GETTING TO THE NUMBER WE'RE TRYING TO GET TO TO ASSIST THE CONVENTION CENTER. GOOD? OKAY. HERE IS THEIR CAPITAL PROGRAM, CONTINUING TO DO THEIR PUBLIC IMPROVEMENTS. THIS IS A VERY MATURE TIP. THEY'RE ACTUALLY REDOING SOME PUBLIC IMPROVEMENTS. YOU'VE SEEN A LOT OF THAT ON GLEN OF GOODACRE. AND I THINK A LOT OF WHAT THEY'RE DOING WILL HELP US WITH THE EVIL GRACKLE PROBLEM WHEN WE GET INTO NEXT YEAR. THE STREET UPGRADE AND REPLACEMENT, $1.5 MILLION, ALL CASH, AND STILL CONTRIBUTING TO THEIR BOTTOM LINE. COMMUNITY DEVELOPMENT? YES, SIR. MR. BRUGEL, YEAH, SORRY. GOT A BRIEF QUESTION FOR YOU BACK ON THE CBD TIP. FIND THAT PAGE HERE. THERE'S A LOT FOR SPECIAL PROJECTS THAT INCREASED FROM $50,000 IN LAST YEAR'S BUDGET TO $300,000 IN THIS YEAR'S BUDGET. CAN YOU GIVE ME THE RUNDOWN ON WHAT THAT IS THERE? WHAT PAGE ARE YOU ON? ON PAGE 77. IS DANIEL HERE? OKAY, HERE WE GO. MOLLY'S HERE. THANK YOU, MA'AM. MOLLY BALLESTEROS, ONE OF OUR TWO FOLKS IN THE BUSINESS DEVELOPMENT DEPARTMENT. $50,000 TO $300,000 INCREASE WAS FOR THE CBD TIP TO SUPPORT SOME OPENING EVENTS FOR THE PICKERING PARK PROJECT. AND THEN THERE WERE SOME OTHER EXPENSES THAT WE HAD [03:20:01] ANTICIPATED BUDGETING AND PAYING FOR OUT OF THAT LINE ITEM. BUT SINCE THIS BUDGET WAS CREATED, WE ARE GOING TO MOVE IN A DIFFERENT DIRECTION, WHICH HAS NOT BEEN ESTABLISHED YET BY THE TIF BOARD. SO WE'LL SEE A REVISED? YES. OKAY. MOLLY, DO YOU KNOW HOW MUCH FOR THE OPENING EVENTS AT PICKERING PARK? THAT IS YET TO BE SEEN BECAUSE THE PROJECT IS NOT FINISHED YET. BUT THEY HAD ESTIMATED, I THINK, $30,000 FOR AN OPENING EVENT OR SUPPORTING PICKERING PARK'S OPENING. OKAY. THANK YOU. COUNCILMAN, IS THAT? YES. THANK YOU. READY FOR COMMUNITY DEVELOPMENT? ALL RIGHT. START ON THIS PAGE, THE HUD GRANTS, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT. THE THING YOU'LL NOTICE AS YOU CARRY ACROSS ON OUR ENTITLEMENT DOLLARS, THAT'S JUST FLAT. AND ALL INDICATIONS ARE THAT, AT BEST, THAT WILL REMAIN FLAT AS WE GO FORWARD. DEPARTMENT-LEVEL EXPENSES, YOU DO SEE A DECREASE IN QUITE A FEW OF THOSE EXPENSES. WE'RE GOING FROM A PRIOR YEAR OF $1.1 MILLION TO A NEW YEAR OF $930,000. EXPENDITURES, THOSE HAVE TO BE, THESE ARE DEFINED BY THE HUD REGULATIONS AS TO WHAT YOU CAN DO. SO UNDER PUBLIC SERVICE, IT'S $300,000. AND NON-PUBLIC SERVICE, $981,000. FOR A TOTAL EXPENDITURE OF $2.21,000, MATCHING YOUR REVENUES. SO WHAT YOU'RE SEEING IS A SHIFT OF OUR OPERATIONAL EXPENSES TO CONTINUE TO TRY TO SUPPORT PUTTING EVERYTHING OUT THAT WE CAN PUT OUT. OKAY. THE HOME INVESTMENT PARTNERSHIP, OR WHAT WE CALL THE HOME GRANTS, THAT IS UP, BUT IT'S REALLY UP $20,000 OR 2%. SO, AGAIN, THAT ONE ALSO NOT DOING A LOT. ALL THOSE DOLLARS GO BACK EITHER THROUGH AFFORDABLE HOUSING DEVELOPMENT, $900,000. AND THEN WHAT SAYS ADMIN AND DIRECT DELIVERY, THAT IS WHAT HUD ASSIGNS TO US TO DO THE ADMINISTRATION, $100,000 THERE. THE NEXT ONE DOWN IS THE EMERGENCY SOLUTIONS GRANT. THIS ONE HAS LESS THAN A 1% CHANGE YEAR OVER YEAR. YOU SEE UNDERNEATH THAT, SENDING DOLLARS TO THE HOMELESS HOUSING AND SERVICES CATEGORY. AND THIS HAS A 7.5% OPERATIONS FEE THAT GOES BACK TO MS. MURPHY AND HER CREW. COMPREHENSIVE ENERGY ASSISTANCE PROGRAM, COMMONLY CALLED THE C-APP GRANT. AND THIS ONE ACTUALLY HAS MORE DOLLARS THIS YEAR. SO WE'RE REALLY, REALLY GLAD TO SEE THAT. YOU SEE YOUR DEPARTMENT-LEVEL EXPENSES. AND THEN A SHORT VERSION OF THAT IS OF THE $2.5 MILLION, $2.338 GO OUT TO OUR PARTNERS TO ASSIST PEOPLE IN NEED. MOVING IN, IN THE PAST, BACK WHEN THESE WERE LARGER GRANTS, YOU HAD A CARRYOVER FROM EACH YEAR. AS YOU CAN SEE, WE'VE NOT HAD THAT NOW IN FOUR YEARS. THUS, WE DON'T HAVE AN EXPENSE AGAINST IT. AND THEN OVER HERE, YOU'VE GOT YOUR ROLL-UP NUMBERS. AND, AGAIN, THE BIG CHANGE IN THOSE IS THROUGH THAT LAST ONE THAT WE LOOKED AT. ECONOMIC DEVELOPMENT. OKAY. SO, I'M NOT SURE HOW FAR WE WANT TO GO INTO THIS. YOUR ECONOMIC DEVELOPMENT DOLLARS IS A SET-ASIDE FROM THE CITY'S PROPERTY TAX. OKAY. SO, WHEN WE TOTAL UP ALL OF THE PROPERTY TAXES, YOU TAKE THE ECONOMIC DEVELOPMENT OFF THE TOP. THE MAJORITY OF THOSE DOLLARS ARE WHAT HELPS OPERATE MARKET LEVEL. OKAY. NO HOT TAX. THIS IS ALL THE PROPERTY TAX THAT YOU HEARD MR. OSBORNE REFER TO. SO, THE PROPOSAL ON THIS ONE, LAST YEAR WE WERE AT $3.5 MILLION TO PUSH OVER. THIS YEAR, STILL AT $3.5 MILLION. BEST WE CAN TELL, THE DELINQUENTS, [03:25:01] THE PENALTY AND INTEREST OFF OF DELINQUENT TAXES, THEY'RE ALL GOING TO STAY RELATIVELY STATIC. THERE'S A SMALL TRANSFER FROM THE GENERAL FUND. THIS IS HELPING SUPPORT THE CITY'S INTERNAL ECONOMIC DEVELOPMENT OR BUSINESS DEVELOPMENT. SO, TOTAL REVENUE OF $3.67, AVAILABLE RESERVES OF $18, THAT IS LESS THAN WAS SPENT IN THE PRIOR YEAR, ENDING AT ABOUT $3.7 TO DISTRIBUTE. SO, I'LL START KIND OF DOWN AT THE BOTTOM, SEE IF THAT MAKES A LITTLE MORE SENSE. YOU'VE GOT THE MARKET LEVEL TRANSFER, THE TRANSFER TO TRANSIT. SO, WHEN WE DID CITY BUS, I SHOWED THAT $400,000 THAT WAS DOWN IN REVENUE. THAT'S THERE. AND THEN, SCHEDULED CHARGE, OTHER, PROFESSIONAL SERVICES, SUPPLIES, BENEFITS, COMPENSATION, THAT IS WHAT SUPPORTS YOUR INTERNAL CITY BUSINESS DEVELOPMENT, WHICH IS MS. BALLESTEROS AND MS. WILLIAMS. I DON'T KNOW IF SHE'S HERE TONIGHT, BUT THAT'S THE TWO-PERSON DEPARTMENT THAT DOES THE INTERNAL WORK. QUESTIONS ON THAT? ALL RIGHT, GATEWAY STREETS. OKAY. GATEWAY IS FUNDED THROUGH A PORTION OF YOUR FRANCHISE FEES. GATEWAY PROGRAM, MUCH LIKE STORMWATER, WAS ORIGINALLY SET UP AS A DEBT SERVICE FUND. SO, THIS IS THE GENESIS OF MILWAUKEE AND ALL THE IMPROVEMENTS OUT THERE. IT'S ASSISTED WITH GETTING THE MARCIA SHARP TO WEST LOOP FLYOVER. IT HAS FUNDED NUMEROUS OTHER MAIN ROADS AND STREETS. THIS IS VERY UNIQUE. I'M NOT AWARE OF THIS STRUCTURE IN ANY OTHER CITY, AND IT HAS REALLY WORKED. AS A PRIMARY DEBT SERVICE FUND, YOU SEE, FOR THE NEW YEAR, ESTIMATED $8.7 MILLION IN REVENUE. 7.3 OF THAT IS DEBT SERVICE. TAX NOTE PAYMENT. TAX NOTE WAS ACTUALLY SOMETHING THAT THE COUNCIL DID TO GET A PORTION OF 114TH STREET FINISHED. AND BECAUSE IT WAS A SMALL AMOUNT, WE DID IT AS A SEVEN-YEAR RATHER THAN ROLLING IT OUT ON A 20. WE STARTED A PROGRAM A COUPLE OF YEARS AGO WHERE GATEWAY STREETS CONTRIBUTES AN ADDITIONAL $500,000 TO STREET MAINTENANCE. THAT ADDITIONAL $500,000 IS ALL SPENT WITHIN THE LOOP, ON THE INSIDE OF THE LOOP. SO, Y'ALL MADE THAT COMMITMENT SEVERAL YEARS AGO. WE'RE CONTINUING TO CARRY IT FORWARD. THAT GETS ADDED TO THE CITY'S $14.5 MILLION STREET MAINTENANCE. OKAY? ALL RIGHT. YOU SEE, FOR THE NEW YEAR, WE'RE SLIGHTLY UNDER OUR REVENUES, OR SLIGHTLY UNDER OUR EXPENSES. LOOK AT THE BOTTOM AS YOUR FUND BALANCE, $6.3 MILLION FOR THE YEAR. $5.4 IS YOUR RESERVE FUND REQUIREMENT, LEAVING AVAILABLE RESERVES OF $893. NOW, THE NEXT THING YOU'RE GOING TO SEE HAPPEN IS THIS START TRICKLING BACK UP. AND WHAT WE'VE DONE FOR THE LAST FIVE YEARS, AS THIS TRICKLES UP ENOUGH TO SUPPORT ANOTHER STREET, IT BECOMES DEBT SERVICE FOR ANOTHER STREET. THE CHANGE BEING, WE'RE STILL HOLDING OUT THAT $500,000 EVERY YEAR FOR THE INCREASED STREET MAINTENANCE INSIDE THE LOOP. DOES THAT MAKE SENSE? QUESTIONS ON GATEWAY? ALL RIGHT. NOPE, GO AHEAD. YES, MR. GRAHAM. OKAY. SO, LET ME GET THIS STRAIGHT. SO, ABOUT 2028, 2029 TO 2030 IS WHEN A LOT OF THE DEBT IS GOING OFF, IS ROLLING OFF, CORRECT? CORRECT. OKAY. AND THEN YOU'RE SUGGESTING, AT THAT POINT, WE'LL START USING MORE OF THOSE RESERVES DOWN THERE AT THE BOTTOM FOR THE NEXT PROJECT. COMBINATION OF THAT, AND IF YOU CHOOSE TO, WE CAN BOND ANOTHER PROJECT BECAUSE YOU HAVE FREED UP. SO, BETWEEN 28 AND 29, WE'RE FREEING UP ANOTHER $1.2 MILLION THAT'S CURRENTLY BEING USED FOR DEBT SERVICE THAT, IF YOU REISSUE, COULD CONTINUE TO BE USED. BUT IT HAS TO BE REISSUED, IS THAT CORRECT? IT HAS TO BE NET NEW. WE, OUR DEBT FUNDING POLICIES, WE DON'T EXTEND EXISTING DEBTS. WE'RE GOING TO PAY ONE OFF AND START ONE NEW. OKAY. ALL RIGHT. HOTEL OCCUPANCY TAX. OKAY, COUNCIL, REMEMBER WE ADDED THIS SLIDE LAST YEAR. SO, THIS IS JUST A QUICK SUMMATION OF WHAT'S ELIGIBLE FOR HOT TAX. TWO-PART TEST. NUMBER ONE, YOU HAVE TO DIRECTLY ENHANCE AND PROMOTE [03:30:01] TOURISM IN THE CONVENTION AND HOTEL INDUSTRY. AND THEN NUMBER TWO, YOU ALSO HAVE TO HIT ONE OF THOSE NINE CATEGORIES. Y'ALL REMEMBER THAT DISCUSSION? SO, JUST KEEP THAT. IF YOU EVER HAVE ANY QUESTIONS, YOU LINE UP BOTH OF THOSE. YOU'VE GOT AN ELIGIBLE EXPENDITURE. IF YOU MISS ONE OR THE OTHER OF THEM, YOU DON'T. OKAY. SO, HERE'S THE HOTEL OCCUPANCY FUND. AND I TALKED ABOUT HOLDING ON TO THE INCREASE. SO, HERE'S HOW I THINK THIS CAN WORK. THE CURRENT YEAR'S BUDGET IS BASICALLY $10.1 MILLION. AND ALL OF THE MODELS THAT JOE AND CHERYL DO, WE'RE VERY CONFIDENT IN $10.5 MILLION. WE ACTUALLY THINK IT MIGHT BE AS MUCH AS $10.6 MILLION, BUT WE PUT $10.5 MILLION IN HERE. YOU'VE GOT YOUR INTEREST EARNINGS, SO YOU CARRY THAT DOWN. YOU'VE GOT THE COMPENSATION AND BENEFITS. YOU'VE GOT BASICALLY THESE INTERNAL COSTS THAT WE HAVE. THOSE ARE PRIMARILY RELATED EITHER TO CIVIC CENTER OR MUSEUMS. MUSEUMS WAS THE CHANGE THAT WAS MADE WHEN WE DID THIS A YEAR AGO. AND THEN COME DOWN TO THE LINE THAT SAYS CIVIC CENTER OPERATIONS AND MARKETING. THAT'S BASICALLY FLAT FOR THE YEAR. CONVENTION AND TOURISM BUREAU. THAT'S BASICALLY FLAT. AND IF YOU TAKE THE NEW YEAR NUMBER, THE 3.647, THAT WAS WHAT WAS IN THE NUMBERS THAT JOHN WAS SHOWING FOR VISIT LUBBOCK. SEE THE GRANT PROGRAM? THAT'S CIVIC LUBBOCK. VISITING, PARTICIPATORY, AND SPECTATOR SPORTS. THAT'S LUBBOCK SPORTS AUTHORITY. I DON'T KNOW WHY THAT NAME IS IN THERE, BUT I GUESS BECAUSE IT ALWAYS HAS BEEN. THE TRANSFER TO THE TIF FOR THE CONFERENCE CENTER, YOU JUST SAW THAT IN THE NORTH OVERTON TIF BUDGET. THE DEBT, THAT'S THE SECOND OF THE TWO DEBTS THAT YOU'RE SERVICING WITH THE HOT. TRANSFER TO THE CIP FOR THE CIVIC CENTER, THAT NUMBER IS UP BECAUSE THAT IS THE GROWTH NUMBER NET OF EVERYTHING ELSE. SO TRANSFERRING THAT TO THE CIP AND THE CIVIC CENTER IS HOW YOU'RE SETTING UP YOUR CONVENTION CENTER. YOU'RE STILL CONTINUING TO FUND THE MAINTENANCE OF THE BALL FIELDS AND TO BUILD INTO THE TURF REPLACEMENT FOR THE BALL FIELDS. SO 10.08 LAST YEAR IN EXPENSE, 10.51. AGAIN, THE CHANGE IS PUTTING THOSE DOLLARS THAT REPRESENT THE GROWTH, THE ROUGHLY HALF A MILLION DOLLARS, PUSHING OVER INTO YOUR CIVIC CENTER CIP FOR THE CONVENTION CENTER PROJECT. COUNCIL, WHEN WE PREVIOUSLY HAVE TALKED ABOUT LOCAL HOT TO SUPPORT THE CONVENTION CENTER PROJECT, WE DON'T HAVE AN AGREEMENT, WE'VE NOT MADE ANYTHING OFFICIAL, BUT JOE AND I HAVE BEEN WORKING ON A MILLION DOLLARS AS DEBT SERVICE OUT OF THE EXISTING HOT. YOU'RE GETTING ALMOST A HALF A MILLION THIS YEAR, AND WHEN THOSE TWO DEBTS RETIRE, THAT TAKES YOU UP TO THAT NUMBER. THUS, AS THIS POT CONTINUES TO GROW, YOU'RE NOT GOING TO HAVE TO TAKE MORE. YOU CHOOSE TO, BUT IN WHAT WE'RE PLAYING WITH, YOU DON'T HAVE TO, WHICH IS HOW ALL OF YOUR PARTNER AGENCIES BUILD THEIR DOLLARS BACK UP, AND THAT'S WHY I THINK THEY CAN DO THAT IN THE FOLLOWING YEAR, THE 28TH YEAR. SO I WAS DROPPING A LOT ON YOU, AND NOT EVERYBODY ON THE DIOCESE HAD THE ADVANTAGE OF THOSE DISCUSSIONS IN THE PAST. COUNCIL MEMBER GREEN'S LOOKING AT ME LIKE, WHAT IN THE WORLD? OKAY, LET ME RUN THROUGH THAT ONE MORE TIME. ALL RIGHT. TODAY, CURRENT YEAR'S BUDGET, WE HAVE $10 MILLION IN LOCAL HOT TAX. IT IS ALLOCATED STRAIGHT DOWN THE LINE, AS YOU SEE, IN THE 26TH BUDGET. DEVELOPING THE CAPITAL STACK FOR THE CONVENTION CENTER PROJECT, YOUR TWO MAJOR SOURCES OF REVENUE FOR THAT ARE FIRST, THE PFZ, OR PROJECT FINANCE ZONE, THAT THE LEGISLATURE APPROVED. THE SECOND IS THE POTENTIAL OF THE VENUE TAX, THE ADDITIONAL 2% HOT. THOSE ARE BOTH NEW REVENUE STREAMS. THE VENUE TAX, THE 2% NEW HOT, THAT GOES TO A VOTE OF THE PUBLIC. TRYING TO PUT OTHER NUMBERS TOGETHER AS WE'RE WORKING TOWARDS EXPENSE, IF YOU ADDED A MILLION DOLLARS A YEAR OUT OF THE LOCAL HOT, THAT IS SUBJECT TO THIS BODY, NOT TO ANYTHING ELSE. THAT CAN BE BUILT IN AS PART OF YOUR DEBT SERVICE TO GET TOWARDS THE TOTAL OF THE PROJECT. SO HOW DO WE GET [03:35:01] TO THAT MILLION DOLLARS WITHOUT UNDULY HARMING OUR PARTNERS? I THINK WE DO IT TWO WAYS. ONE, WE'RE PROJECTING A HALF A MILLION DOLLAR GROWTH FROM LAST YEAR TO THE NEW YEAR. IF YOU HOLD THAT, IN OTHER WORDS, YOU DON'T DISTRIBUTE IT TO YOUR PARTNERS. IF YOU HOLD THAT, THERE'S NEARLY A HALF A MILLION DOLLARS TOWARDS THAT ONE MILLION. WHEN THE TWO DEBT SERVICES EXPIRE THAT ARE OUT THERE, WHICH TODAY IS $435,000 PLUS $87,000, THOSE RETIRE NEXT YEAR. THAT'S MONEY THAT COULD BE REALLOCATED THAT DOESN'T COME OUT OF YOUR PARTNERS. YOU HIT YOUR MILLION DOLLAR TARGET. THUS, WHEN WE DO THE 28 BUDGET, ANY GROWTH THAT'S IN THAT, THE COUNCIL CAN PUT BACK TO YOUR PARTNERS. SO NONE OF THE PARTNERS HAD A SIGNIFICANT CUT AT ALL THIS YEAR, BUT THEY DIDN'T GET THE GROWTH. I'M SUGGESTING YOU KEEP THE GROWTH. TAKE THE 28 GROWTH WHEN THAT ROLLS ON AND START DOING WHAT YOU WISH WITH YOUR PARTNERS TO INCREASE THEIR FUNDING. DOES THAT FEEL BETTER? I'M NOT GOING TO DO THAT MATH IN PUBLIC. YOU ADD IT TO THE PFZ AND TO THE NEW 2% LOT. COUNCILMAN COLLINS IS THE ONE THAT CATCHES ME EVERY YEAR DOING MATH IN PUBLIC, SO I'M NOT. OKAY. I KNOW THAT WAS A BUNCH. ANY MORE QUESTIONS ON HOT? OKAY. SO HERE'S THE CAPITAL IMPROVEMENT. THE TWO ITEMS THAT ARE RELATED TO THE TOURNAMENT BALL FIELD MAINTENANCE IMPROVEMENTS THAT ARE ROLLED TOGETHER IN HERE, AND THEN THAT'S 666 FOR THE CONVENTION CENTER EXPANSION. THAT NUMBER IS BIGGER THAN THE 500 BECAUSE THERE WAS ALREADY 150,000 IN IT IF YOU ADD THE TWO TOGETHER. OKAY. YOU'VE REALLY GOT THREE PAGES LEFT, SO THANK YOU. YES, MA'AM. I'LL HURRY. AND THEY LOOK LIKE THAT. THERE, HOW'S THAT? THESE ARE YOUR UNIQUE, GENERALLY SMALLER, BUT THESE ARE YOUR UNIQUE REVENUE SOURCES THAT ALL WILL HAVE THEIR OWN REVENUE AND THEIR OWN EXPENSE. THEY'RE ALL LIMITED. THEY'RE HIGHLY REGULATED. SO LIKE THE ABANDONED VEHICLE PROGRAM. YOU SEE THAT? THAT HAD TAILED OFF. IT SEEMS TO BE PICKING BACK UP. THAT ACCRUES TO THE POLICE DEPARTMENT. THINK OF IT AS A UNIQUE GRANT FUND, AND THEY CAN ONLY USE IT FOR CERTAIN THINGS. ANIMAL ASSISTANCE PROGRAM, OBVIOUSLY FOR THE SHELTER. EVERY ONE OF YOUR PUBLIC IMPROVEMENT DISTRICTS AND EVERY ONE OF YOUR TIPS IS LISTED IN HERE. AND REMEMBER, YOU WILL SEE EACH OF THOSE PUBLIC IMPROVEMENT DISTRICTS SEPARATELY ALL OVER AGAIN STARTING NEXT TUESDAY. A COUPLE THAT I WANT TO KIND OF POINT OUT. ABOUT A THIRD OF THE WAY DOWN, THE DEPARTMENT OF JUSTICE ASSET SHARING PROGRAM, AND WE'RE ABOUT TO UPDATE THAT MOU. THAT IS EXTREMELY, EXTREMELY VARIABLE. LAST YEAR, THERE WAS SUCH SMALL REVENUE. IT WAS NOT APPROPRIATED. WE'LL TRY TO PUSH IT FORWARD INTO THE NEW YEAR. ECONOMIC DEVELOPMENT, THAT'S WHAT WE JUST WENT OVER EARLIER. YOU SEE GATEWAY STREETS IN HERE. WE'VE SEEN THAT ONE AS WELL. COME DOWN A LITTLE BIT FARTHER, AND YOU SEE NORTH AND EAST LUBBOCK INN AND I FUND. THAT'S THE NORTH AND EAST LUBBOCK NEIGHBORHOOD AND IMPROVEMENT PROGRAM. THAT IS A PORTION OF THE CITY'S OIL ROYALTIES THAT COME IN. THAT MONEY IS HELD IN A SPECIAL ACCOUNT BY YOUR COMMUNITY DEVELOPMENT PROGRAM, AND IT REALLY PROVIDES SOME OF THE SAME SERVICES THAT THE HUD GRANTS DO, BUT WE TARGET SPECIFIC GEOGRAPHY, AND WE TARGET PEOPLE WHO OTHERWISE CAN'T MEET THE HUD ELIGIBILITY REQUIREMENTS. SO WE'RE REALLY KIND OF FINDING A WAY TO CATCH SOME OF THOSE THAT FALL THROUGH THE GAP. YOU CAN SEE WHERE OVER THE YEARS THAT'S BEEN A VERY HIGH NUMBER. IT HAS REALLY CENTERED UP KIND OF IN THAT $350,000 RANGE. IF YOU GET MORE REVENUE, IT CARRIES OVER, SO IT DOESN'T GO AWAY. ANY QUESTIONS PARTICULARLY ON THIS? [03:40:01] COUNCILWOMAN, MY COMMUNITY IS GOING TO SEE YOU. ON THE NORTH AND EAST LUBBOCK INN AND I FUND, DID WE USE SOME OF THOSE DOLLARS TO SUPPLEMENT THE SURILATERAL PROJECT? WE USE SOME OF THOSE DOLLARS FOR THOSE THAT QUALIFY TO GET A GRANT. SO THIS BECOMES THE GRANT FUNDS THAT PAYS THAT $1,000 FOR THEM. BUT WE HAVE DOLLARS A MONTH JUST FOR THAT, RIGHT? YES, AND MORE THAN SUFFICIENT FUNDING. YES, OKAY, THANK YOU. OKAY, THESE ARE THE EXPENDITURES MATCHED AGAINST THE REVENUES ON THIS. AND WE'VE ALREADY DONE COMPONENT UNITS. ALL RIGHT, ARE THERE ANY FINAL QUESTIONS, WRAP-UP QUESTIONS OR ANYTHING? I COMMEND EVERYBODY FOR STAYING AWAKE THROUGH ALL OF THAT. SO THAT'S A LOT, A LOT TO DIGEST. IT DOESN'T MATTER WHETHER YOU'VE BEEN HERE FOUR YEARS OR TWO YEARS OR JUST GETTING STARTED. IT'S ALWAYS A LOT TO DIGEST. YES, SO VERY GOOD, BUT ALWAYS A GOOD PRESENTATION AND A GOOD LAYOUT. AND I'LL LOOK FOR THAT BUCKET ILLUSTRATION HERE REAL SOON. WE'RE GOING TO DO OUR BEST TO GET THAT TO YOU. AI WILL HELP YOU GENERATE A GOOD BUCKET. SO, MAYOR, WE HAVE A VERY STRICT AI USAGE POLICY AT THE CITY OF LUBBOCK. ALL RIGHT. ALL RIGHT. WELL, THANK YOU VERY MUCH. WITH THAT, WE ARE DONE. SO WE WILL NOT HAVE A MEETING TOMORROW. WE'LL COME BACK ON FRIDAY AT 2 O'CLOCK AGAIN. IS THAT WHEN IT IS? CORRECT. AND YOU'LL GET YOUR GENERAL FUND DOCUMENTS TOMORROW MUCH EARLIER THAN WHAT YOU GOT THIS STUFF. I KNOW. BUT HE'S NOT READY. HE'S NOT READY TO PRESENT IT YET. SO WE'VE GOT TO GIVE HIM SOME TIME TO GET THAT BUCKET ILLUSTRATION GOING. ALL RIGHT. WE'RE DONE HERE TODAY. * This transcript was compiled from uncorrected Closed Captioning.