[Town Hall Budget]
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COMMUNITY THE SEPTEMBER 7TH 2020 TO PROSPER BUDGET TOWN MEETING. MY NAME IS DAVID BRISTOL. I'M THE MAYOR. AND, UH SO I WANTED TO JUST THANK YOU GUYS FOR COMING THIS EVENING. THANK THE STAFF WHO IS HERE THIS EVENING AND THE STAFF WHO PUT IN THE TIME TO GET THIS PREPARED. WHAT YOU'RE GONNA SEE TONIGHT IS ABOUT 15 MINUTES WORTH OF SLIDES ON THE BUDGET AND WHERE WE ARE TODAY, AND THEN WE'LL OPEN UP THE CITIZENS INPUT FROM THERE. SO FOR THOSE OF YOU WHO MAY BE ONLINE YOU'LL HAVE THE OPPORTUNITY TO INTERACT AND SEE THE SLIDES AT THE SAME TIME. SO WITH THAT OUR SPEAKER THIS EVENING IS BOB SCOTT, THE TOWN'S FINANCE DIRECTOR. BOB, YOU'VE GOT THE FLOOR. THANK YOU. OKAY? SO THIS IS REALLY THE CULMINATION OF A LONG PROCESS.
AND THESE ARE JUST SOME OF THE DATES WE PLAN TO ADOPT NEXT TUESDAY ON THE 13TH, SO THERE'S STILL TIME FOR COMMENTS. SO WE HAVE BEEN MAKING A LOT OF CHANGES THIS YEAR. THERE HAS BEEN A COMPLETE VISION OF OUR FINANCIAL POLICIES. THESE POLICIES WERE ORIGINALLY ADOPTED IN 2017. AND FIVE YEARS IS ABOUT RIGHT TO TAKE A ANOTHER LOOK, SO WE CHANGED OUR OPERATIONS SERVICE BE TO 60 40, WHICH WAS MUCH MORE REALISTIC. GIVEN THE BOND PROGRAM THAT WAS PASSED IN NOVEMBER. 2020 WE HAVE A DEBT MAXIMUM NOW OF 4% OF TAX PROCESS EVALUATION. WE'RE GOING TO TALK A LOT MORE ABOUT MANAGING THAT DEBT PROGRAM AS PART OF OUR CAPITAL PROGRAM. THE TAX RATE.
THIS IS ONE OF THE BIGGER CHANGES FOR THE BUDGET THIS YEAR. IS PREVIOUSLY ALL OF THE TAX RATES SIMPLY TO THE GENERAL FOUND FOR OPERATIONS. AND RECOGNIZING THE NEED SIGNIFICANT CAPITAL NEEDS HERE IN THE TOWN. WE HAVE NOW DIVIDED THAT UP BETWEEN A MAINTENANCE AND OPERATIONS, WHICH IS GENERAL FUND AND CAPITAL DEDICATED FUTURE STAFFING AND WHAT THE PART OF THE TAX LEVY DOES IS. IT HELPS US MANAGE OR DEBT LEVELS. WHILE MAINTAINING THE CAPITAL PROGRAM AT LEAST THE SAME PACE WE HAD PLANNED. REALLY, HOPEFULLY MAYBE EVEN A LITTLE BIT FASTER. WE HAVE REVISED BUDGET TRANSMITTAL LETTER, WE ADDED MORE INFORMATION ON ASSESSED VALUATION, WHICH RELATES TO PROPERTY TAXES. WE'RE NOW DIFFERENTIATING BETWEEN RECURRING AND NON RECURRING REVENUES SO WE CAN GET A BETTER IDEA OF THE SUSTAINABILITY OF OUR BUDGET WHEN WE ADOPTED AND WE'RE ALSO DOING A LOT MORE FUTURE FORECASTING IN TERMS OF FIVE YEAR FORECAST OF BOTH STAFF STAFFING NEEDS AND OUR CAPITAL PROGRAM AND THEN TRYING TO MATCH THEM TOGETHER. WE ARE SEEING IN PLAY IMPACTS AND WE'RE LOOKING AT THAT. AND THEN WE ALSO CREATED FOR THE FIRST TIME IN SOLID WASTE FUND SO WE CAN TRACK THE COST OF SOLID WASTE. UH PREVIOUSLY IT WAS INCLUDED IN THE WATER AND SEWER FUN. SO HERE'S A LITTLE BIT OF INFORMATION. ON ASSESSED VALUATION WERE. PROPOSING TO CONTINUE WITH THE 51 SET TAX RATE, BUT WE HAVE SHIFTED JUST UNDER 2/10 OF A CENT BACK TO MAINTENANCE STOP ORATIONS DUE TO STRONG GROWTH. WE ARE ALSO HAVE ESTABLISHED ABOUT A $7.6 MILLION CAPITAL LEVY, WHICH IS APPROXIMATELY 11.2 CENTS. AND THAT WILL MAKE A HUGE DIFFERENCE IN TERMS OF THE AMOUNT OF CAPITAL PROGRAMS THAT WE CAN MAINTAIN. THEN AS I MENTIONED BEFORE, IT ALSO HELPS US MANAGE OUR OVERALL DEBT LEVEL. SO EVERYONE KNOWS THAT WE'RE SEEING VERY ROBUST HOME VALUES. IT'S SLOWED DOWN A LITTLE BIT IN THE LAST FEW MONTHS, BUT IN TERMS OF THE TAX ROLLS. THE AVERAGE HOME STOOD INCREASED FROM 504,002. JUST UNDER 539,000 THIS LAST YEAR. AND HERE'S OUR REVENUE
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FROM VARIOUS FUNDS AS YOU CAN SEE PROPERTY TAX OR LARGEST SINGLE REVENUE. UH FOLLOWED BY UTILITY FEES AND THEN SALES TAXES. IMPACT FEES, UH, WERE THINKING WILL START SLOW DOWN AS THE CITY REACHES BUILT OUT AND THEN FACT WE ARE NOW OVER HALFWAY BUILT. OUR PROJECTED POPULATION BUILD OUT IS 72,000. AND SO WE'RE JUST OVER THAT WE'RE OVER HALFWAY THERE, AND WE NEED TO START PLANNING FOR THAT. SO SPEAKING OF PLANNING FOR THAT , WHAT ARE OUR FINANCIAL CHALLENGES? WE'VE INVESTED HEAVILY IN OUR CAPITAL NEEDS. RESULTING IN WE CURRENTLY HAVE ABOUT $195 MILLION WORTH OF TAX SUPPORTED DEBT, SO DIVIDE THAT BY OUR POPULATION AND IT COMES TO A PER CAPITA OF ABOUT 5300. DOLLARS AND SO YOU THINK ABOUT AN AVERAGE FAMILY BEFORE $20,000 WORTH OF JUST TOWN DEBT, NOT COUNTING THE SCHOOL DISTRICT OR THE COUNTY AND SO THAT'S REALLY HIGH. WE DON'T WANT TO SEE IT GO MUCH HIGHER. AND SO. ALL IT TAKES, THOUGH, IS TO DRIVE AROUND TOWN AND NO, WE'RE NOT NEARLY DONE IN TERMS OF THE CAPITAL MOVEMENTS THAT NEED TO TAKE PLACE. THERE IS A LOT MORE NEEDED. AND SO THAT IS OUR CHALLENGE OF WE ALREADY HAVE FAIRLY HIGH DEBT LEVELS. BUT WE STILL HAVE A HUGE AMOUNT OF NEEDS. SO THE COUNCIL'S RESPONDED BY CREATING AS I MENTIONED BEFORE A UH, PART OF THE MAINTENANCE AND OPERATIONS LEVY DEDICATED TO CAPITAL NEEDS. AND THIS DEDICATED CAPITAL B. COMBINED WITH THE 18 CENTS OF DEBT SERVICE. MEANS THAT ABOUT 57% OF OUR PROPERTY TAXES ARE FUNDING CAPITAL NEEDS RATHER THAN OPERATIONS. AND SO AS YOU'LL SEE IN A MINUTE, THAT'S NOT FAIRLY SIGNIFICANT SHIFT FROM WHERE WE'VE BEEN. SO LET'S TALK ABOUT THE CAPITAL NEEDS AND I'M NOT GOING TO GO OVER THESE IN DETAIL. BUT YOU CAN SEE SOME OF THE UH, INITIAL FOR THIS SEVEN. OVER $7 MILLION OF CAPITAL DEDICATED LEVY. YOU CAN SEE SOME OF THE NEEDS FOR THIS YEAR. EVERYONE HAS HEARD ABOUT THE INFLATIONARY PRESSURES WERE EXPERIENCING THE SUPPLY CHAIN ISSUES AND WE'VE SEEN A LOT OF COST OVERRUNS. AND SO WE'RE USING SOME OF THAT INITIAL CAPITAL DEDICATED LEVY TO ADDRESS. SOME OF THE COST OVERRUNS THAT WE'RE SEEING, BUT WE STILL HAVE OVER $4 MILLION TO ALLOCATE FOR FUTURE PROJECTS AND WE'RE LOOKING AT PROBABLY LATE OCTOBER LAST OCTOBER, MEETING OR NOVEMBER MEETING TO, UH, GO THROUGH. WHERE THAT ADDITIONAL LEVY CAN BE SPENT. MOST PRODUCTIVELY. AND SO WHEN YOU LOOK AT THE CAPITOL DEDICATED LEVY, YOU CAN SEE SOME OF THE PROJECT. WE'RE LOOKING AT $18 BILLION FOR A PARK. SIX MILLION FOR LEGACY. 5.5 MILLION FOR KOMEN. AGAIN SOME HUGE ROAD, UH , NEEDS THAT WE HAVE HERE IN THE TOWN. AND THEN BEYOND, UH, PHYSICAL YEAR 2028 BEYOND YOU CAN SEE SOME OF THE NEEDS. PARVIN AND PROSPER TRAILS BEING TO THE LARGEST PARTS OF THAT. MORE FOR LEGACY AND MORE FOR COURT ROAD. SO SIGNIFICANT CAPITAL NEEDS THAT WE'RE LOOKING AT IN THE NEXT FIVE PLUS YEARS. OKAY, SO. THESE ARE SOME OF THE PROJECTS LOOKING AT A MAP OF THE TOWN YOU CAN SEE. AH! THAT LISTED OUT BY YEAR. WE COLOR CODED BY YEAR. AND I THINK IT'S SIGNIFICANT TO NOTE DALLAS NORTH TOLLWAY IS 2024. AND IT IS.[00:10:05]
DALLAS NORTH POLE WAYS BUILT OUT WE ALL KNOW HOW THAT'S GOING TO SPUR DEVELOPMENT UP THAT ENTIRE FOUR DOOR. SO. WE HAVE TWO GOALS WE HAVE ACTUALLY. BOB GOALS, BUT TWO OF OUR GOALS STRATEGIC GOALS THAT THE COUNCIL HAS SET FOR US. IT IS. UH PROVIDING EXCEPTIONAL SERVICES AND INVESTING IN PROSPEROUS FUTURE. THE CAPITAL AND WE ASKED COUNCIL DIRECTLY. UH DURING THE BUDGET PROCESS.WHAT DO YOU WANT US TO EMPHASIZE , AND THE ANSWER IS VERY CLEAR. THAT WE PUT A LOT MORE WEIGHT.
ON INVESTING IN PROSPEROUS FUTURE. THAT MAY CHANGE AS WE REACH, BUILD OUT AND GET MANY OF THE ROADS AND OTHER FACILITIES, BILL, BUT RIGHT NOW WE NEED TO BE INVESTING. IN CAPITAL AND SO WHAT DOES THAT? I MEAN, AND I TOOK A THREE YEAR SNAPSHOT. OF WHERE WE HAVE ALLOCATED OUR TAX RATE YOU CAN SEE UH, IN 2021. OUR TAX RATE WAS 52 CENTS. AND. OVER TWO THIRDS OF THAT 52 CENTS WAS GOING TOWARDS OPERATIONS GOING TO THE GENERAL FUND. AND SO. IN 2022 WHEN WE REALLY STARTED ISSUING A LOT OF DEBT RELATED TO THE CAPITAL RELATED TO THE BOND ELECTION 2020 BOND ELECTION. WE SHIFTED. THREE CENTS OUT OF THE GENERAL FUND AND PUT IT INTO DEBT SERVICE TO SUPPORT THOSE HIGHER LEVELS OF DEBT. BUT THEN WE ALSO CUT THE RATE BY A PENNY AND WE WENT DOWN TO 51 CENTS. AND SO NOW, THE GENERAL FUND. UH DROPS FROM 68 A HALF TO 62. BUT THIS YEAR IS THE DRAMATIC CHANGE BECAUSE WITH THE CREATION OF THE CAPITAL DEDICATED LEVY. YOU CAN SEE. WE ONLY HAVE A LITTLE OVER 40% OF OUR TAX RATE NOW TRULY DEDICATED TO OPERATIONS WERE TRYING TO CARVE OUT. THE CAPITAL DEDICATED AND USE THAT IN CONJUNCTION WITH OUR DEBT SERVICE LEVY TO SUPPORT THE CAPITAL PROGRAM. SO THERE'S BEEN A FAIRLY SIGNIFICANT SHIFT. SO THE NEXT QUESTION IS WHEN YOU PAY YOUR PROPERTY TAX AND MOST OF US PAY VIA S GROW, AND WE PAY THAT MONTHLY AMOUNT. WE DON'T REALLY THINK ABOUT WHERE THAT PROPERTY TAX GOES. WE JUST KNOW THE ENTIRE AMOUNT THAT WE'RE PAYING EACH MONTH. OKAY AND SO WE'VE BROKEN IT OUT IF YOU LIVE IN COLLIN COUNTY. YOU CAN SEE.
66% GOES TO THE SCHOOL DISTRICT. AND THEN WHEN YOU LOOK AT THE COUNTY AND THE COLLEGE COLLEGE COLLEGE. THEN THAT BRINGS IT UP TO 77% IN 23. OF THE TOTAL PROPERTY TAXES. ACTUALLY. COME BACK TO THE TOWN. AND AS I MENTIONED, WE NOW ARE TAKING UH, ALMOST. 60% OF THAT. AND PUTTING IT INTO CAPITAL INVESTMENT OF THE TOWN TAXES. AND THESE ARE ON YOUR LEFT IS LAST YEAR AND THEN ON YOUR RIGHT IS THE PROPOSED FOR NEXT YEAR. DIDN'T CARRY IS FAIRLY SIMILAR. YOU CAN SEE AGAIN 66% OF THE PROPERTY TAXES. GO TO THE SCHOOL DISTRICT WITH ABOUT 23% STAYING WITH THE TOWN.
SO WHAT HAS THE AVERAGE UH, PROPERTY TAX BILL? WHAT IS GOING TO HAPPEN WITH THE NEW BUDGET? WE HAVE GONE FROM 25 72. 2 27 48. BUT AGAIN YOU CAN SEE IS DISTINGUISHED. THE GENERAL FUND AND THE TOURS AND LET ME EXPLAIN THE TOURS REAL QUICKLY. TAX INCREMENT REINVESTMENT ZONE.
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THAT IS BASICALLY REIMBURSING THE DEVELOPERS OF THE GATES OF PROSPER. AND SO A LITTLE BIT OF OUR PROPERTY TAX. NOT ALL OF IT COMES BACK TO SERVE THE TAXPAYERS. WE HAD TO INVEST SOME OF THAT PROPERTY TAX BACK TO ENCOURAGE THE ECONOMIC DEVELOPMENT THAT WE'VE SEEN. SO WHEN YOU TAKE THOSE TWO TOGETHER THIS YEAR OR A LITTLE OVER 1000 1000 $173, THE CAPITAL DEDICATED IS 604. AND THEN THE DEBT SERVICE IS 971 AND SO BASICALLY JUST UNDER $1600 OF THE AVERAGE PROPERTY BILL IS GOING TO INVESTING IN PROSPEROUS FUTURE. SO WHAT? WHAT WERE SOME OF THE MAJOR INITIATIVES ON BOTH OPERATING AND CAPITAL SIDE? NEW YORK P SOFTWARE. WHAT IS THAT? UH THAT IS BASICALLY ORGANIZATION WIDE SHOCKER. UH MOST OF YOU HAVE HEARD THE TERM PLANNED ALL LESSONS. THE SOFTWARE INDUSTRY HAS CERTAINLY HEARD THAT TERM. AND OUR CURRENT VENDOR HAS BASICALLY TOLD US THE AFTER 2024. WE WILL NO LONGER BE SUPPORTED. MEANING THERE IF HACKERS FIND VULNERABILITIES WITH OUR SOFTWARE, ETCETERA, THERE WILL BE NO PATCHES TO HELP US FEND THAT OFF. SO OBVIOUSLY WE CAN'T LEAVE THE TOWN VULNERABLE. WE HAVE TO CONTINUE TO IMPROVE THE FUNCTIONING OF OUR SOFTWARE'S THAT'S UH, BIG INVESTMENT. BUT ITS INVESTMENT WE HAVE TO MAKE TO SAY EFFICIENT IN EFFECT. WE'RE ALSO ADDING 34 POSITIONS, FIRES 15 POLICE IS SEX AND THEN ALL OTHER DEPARTMENTS IS NOT AND LUDES. YOU TELLING. AND THEN WE BIG HEADLINE IS OPENING THE NEW VIRUS. SO THAT'S A THAT'S GONNA HAPPEN. APRIL UH YOU CAN CAPITAL SLIDE THAT WAS AWAY TO COMMENT ON FIRST STREET. UM WHAT'S THIS MORNING? I WAS LOOKING OUT THE WINDOW EAST CONTRACT. BACKED UP FROM THAT'S BE OVERDUE. UH AND THEN REMAIN APPLE DAY. NOT YET HOSTILE PROGRAM IN. WITH THAT. MAYOR BEYOND IT WAS 18 MINUTES, THE THING. OKAY, SO. OPEN FOR QUESTIONS BOTH ON OVER IN PERSON. OKAY. MORE OFTEN. ABSOLUTELY OH, QUESTIONS ABOUT THE CAPITAL INVESTMENT. BUILD UP ANY WOW. CAREFUL YOU. WERE PROJECTED.BUILD A TOP. IT'S A 2000 YEARS POPULAR. AND WE'RE LOOKING AT ABOUT 55,000 FIRES SO EXTREME THAT OUTWARD, PROBABLY THE 8000 JANUARY OF THIS YEAR. WE WERE 35 4 AND WITH THE HOUSING COMPLETIONS WE'VE HAD TODAY WE'RE NOW ESTIMATING ABOUT 38. SO ANOTHER 17,000 AND THE NEXT FIVE YEARS. PROBABLY ANOTHER FIVE YEARS AT A TIME PAID FILLED OUT SO PROBABLY WITHIN 10 YEARS.
NOW WHAT? I CAN TELL YOU WHAT I'VE EXPERIENCED IN THE PREVIOUSLY I WORKED AT IT IS THINGS START TO SLOW DOWN BECAUSE AS YOU APPROACH BUILD OUT, BECAUSE ALL THE GOOD
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PARCELS OR TAKEN IT JUST SLOWS DOWN A LITTLE BIT, SO IT MAY BE LONGER THAN THAT, BUT THAT'S ABOUT WHAT WE'RE LOOKING AT. STEP BY OKAY? YEAH, OKAY. ANY OTHER PERSON QUESTIONS. HE'S LIKE OKAY? I GUESS IT IS ME TIGHT. THIS IS DOUG. CHARLES UM, SO THANK YOU FOR THE PRESENTATION. ONE OF THE QUESTIONS THAT I ACTUALLY HAVE A COUPLE OF QUESTIONS, BUT BEFORE I DO, CAN YOU HEAR ME? OKAY. OH, I'LL TAKE THAT AS A NO. HOLD ON A SECOND. LET ME TAKE OUT MY AIRPLANE. WE CAN HEAR YOU. WE CAN HEAR YOU. OKAY. IS THIS BEING BETTER? A LOT BETTER. OKAY THAT'S MY THOUGHT. OKAY ANYWAY, SO THANK YOU FOR THE PRESENTATION. I HAVE TWO QUESTIONS AGAIN. THIS STUFF, CHARLES. UM ON THE CHARTS THAT YOU DID FOR THE THREE YEARS WHEN YOU ADD INTO THE 2023 2022 UM, VERSION. I'M ASSUMING THAT THE CAPITAL IS REALLY. THINGS THAT WE ALREADY SPENT IN PRIOR YEARS . THAT CHART LOOKS LIKE THE ORANGE PIECES IS. HOW MUCH IS THAT REALLY NEW AND JUST NOW REALLOCATING KNOW HOW WE HAD PREVIOUSLY SPENT. AND THEN OF THE SECOND QUESTION IS. AROUND THE ASSUMPTIONS AROUND SALES TAX REVENUE. GIVEN OUR GROWTH YEAR OVER YEAR FOR THE LAST 2 TO 3 YEARS WE'VE HAD, YOU KNOW, WITH ALL THE STILL NEW RETAIL COMING ON, SO YOU HAVE CURRENT INSTALLED RETAIL GROWING AT SOME SMALL PACE, BUT THEN YOU HAVE A BUNCH OF NEW RETAIL AND SALES TAX AND THEN BEVERAGE TAX COMING IN AS WELL. I SAW IN THE PRESENTATION OR IN THE BUDGET DETAIL. THAT WE STILL TOOK A VERY CONSERVATIVE VIEW ON THAT.AND I'D LIKE TO MAYBE UNDERSTAND WHY WE TOOK SUCH A CONSERVATIVE YOU. I'M NOT ACCESSING GO REAL AGGRESSIVE, BUT STILL LOOKS LIKE WE ONLY TOOK A 5% YEAR OVER YEAR WHEN WE'VE SEEN MUCH MORE THAN THAT FOR THE LAST COUPLE OF YEARS, ESPECIALLY SINCE THE TAX GROWTH SO THOSE ARE THE FIRST TWO QUESTIONS AND I'LL PAUSE THERE. SO YOU GET SOME ANSWERS IN OKAY? FIRST OF ALL, LET ME JUST PAGE BACK TO THOSE AND YOU CAN SEE. FOR FY 2023 ON THE SALES TAX OR ANSWER THE SECOND ONE FIRST. AH! YOU YOU HAD, SAID 5. 5% INCREASE. WE'D BE LOOKING MORE IN THE $14 MILLION RANGE.
YOU CAN SEE WE HAVE STEPPED UP. IN FACT, WHEN I ARRIVED, THAT WAS ONE OF THE FEEDBACK ITEMS FROM THE COUNCIL WAS, THEY FELT SALES TAXES TOO CONSERVATIVE AND WE HAVE TRIED TO ADDRESS THAT NOW. OKAY I WILL. I WILL TELL YOU, HOWEVER, THAT. SALES TAX IS VERY, VERY VOLATILE AND THE REASON WE ARE CONSERVATIVE AND TRY TO BE CONSERVATIVE ON IT IS BECAUSE UH, OVER THE YEARS WE'VE SEEN UH, PARTICULARLY WHEN WE GO INTO RECESSION SALES TAX DROP VERY, VERY QUICKLY. PROPERTY TAXES INSULATED. THERE'S ALWAYS A LAG BETWEEN WHEN THE ECONOMY GOES SOUTH AND PROPERTY TAXES GO SOUTH. ALTHOUGH IN MY PREVIOUS CITY I'VE SEEN IT GO DOWN THREE YEARS IN A ROW IN TERMS OF TOTAL ASSESSED VALUATION. RIGHT NOW. WE ARE VERY FORTUNATE IN THAT WERE IN THAT GROWTH MODE AND AS LONG AS WE'RE ADDING NEW ROOFTOPS, WE'RE GOING TO CONTINUE TO SEE THE PROPERTY TAXES GO UP EVERY YEAR, PROBABLY EVEN IN A RECESSION, WHERE MAYBE VALUES OR STARTING TO PLATEAU.
BUT THAT'S ON THE SO YOU CAN SEE ON THE SALES TAX SIDE WE ESTIMATED JUST UNDER A FOUR MILLION INCREASE OVER THE PREVIOUS YEAR. NOW THIS IS BUDGET TO BUDGET AND SO WHAT WE DO. IS WE LOOK AT WHAT OUR ACTUAL EXPERIENCE IS, UH, YEAR TO DATE, AND I THINK THE LATEST SALES TAX WE HAD WAS THROUGH THE AUGUST PAYMENT, WHICH REPRESENTS JUNE SALES AND TOOK THAT AND THEN WE EXTRAPOLATED THAT FORWARD, WHICH IS HOW WE ARRIVED AT THAT $17 MILLION NUMBER THE
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17 554. NOW YOUR OWN QUESTION CHART. MY OTHER QUESTION WAS MORE ABOUT UM, THE CHARTS THAT YOU DID THE LITTLE PIE CHARTS 21 22 22 23 YOU SHOWED. THE NEW CAPITAL CONTRIBUTION. I WAS ASKING HOW MUCH OF THAT IS REALLY GOING TO BE NEW VERSUS RE CLASSING PRIOR YEARS, YOU KNOW INTO THAT SORT OF CAPITAL ALLOCATION NEW NATURAL OUT. IT'S REALLY ALL NEW ACT. I WON'T TELL YOU THAT IN THE PAST THERE THERE WASN'T SOME. ALLOCATION IN THE GENERAL FUND FOR A PARTICULAR CAPITAL ITEM. AND IN FACT, WE STILL UH EVERY YEAR, FOR EXAMPLE , WE ADD POSITIONS. WE HAVE A LOT OF WHAT WE CALL NON RECURRING, MOST OF WHICH IS CAPITAL RELATED TO THAT AN EXAMPLE WOULD BE TAHOE. YOU HAD A POLICE OFFICER. YOU'RE ADDING A TAHOE AND ALL THE THINGS RELATED TO THE TAHOE, INCLUDING ALL THE, UH OUTFITTING. AND THE RUGGEDIZED COMPUTER AND ALL THOSE DIFFERENT THINGS. AND SO, UH, THOSE ARE STILL IN THE GENERAL FUND BUDGET IT IN THE GENERAL FUND. WHAT THAT ORANGE IS ROAD PROJECTS, PARKS PROJECTS. AND WHAT WE'RE DOING IS WE'RE CARVING IT OUT, AND WE'RE CARVING IT OUT FOR A GOOD REASON. BECAUSE WHAT HAPPENS WITH GROWTH IS IF YOU ADD 1000 ROOFTOPS. IN A SINGLE YEAR. UH, THAT'S NOT GOING TO JUSTIFY. A NEW PARK NECESSARILY, OR A NEW FIRE STATION OR A NEW SPORTS COMPLEX. YOU ADD 1000 ROOFTOPS 567 YEARS IN A ROW, AND ALL OF A SUDDEN YOU DO NEED THAT NEW FIRE STATION OR THE NEW SPORTS COMPLEX. AND SO WHAT HAPPENS IN A HIGH GROWTH ENVIRONMENT THAT WE'RE IN IS THE GROWTH COMES IN INCREMENTALLY YEAR BY YEAR. WE GET ALL THIS NEW TAX REVENUE BECAUSE WE NOW HAVE 1000 NEW HOMES. AND YET WE REALLY HAVEN'T SPENT THE MONEY THAT THAT NEW REVENUE IS INTENDED FOR YET BECAUSE WE HAVEN'T ADDED THOSE FACILITIES WE CAN'T AGAIN. WE CAN'T ADD ONE LANE OF A SIX LANE ARTERIAL AT A TIME. AND SO THE REVENUES COMING IN INCREMENTALLY. AT THE EXPENDITURES GO OUT AND BIG CHUNKS. AND SO WHAT WE'RE TRYING TO DO. WITH THAT CAPITAL DEDICATED IS IT'S EASY TO SAY OH, WE'VE GOT ALL THIS NEW REVENUE IN WE ARE DOING REALLY, REALLY WELL. UNLESS YOU LOOK FOR THE NEXT FIVE YEARS ON WHAT ARE PROJECTED CAPITAL IMPROVEMENTS NEED TO BE AND SO THE CAPITAL DEDICATED HELPS US SMOOTH THAT OUT. THE REVENUE COMES IN AND THE ONLY REASON WE WERE ABLE TO DO THAT BIG OF A CAPITAL DEDICATED AND STILL ADD NEW POSITIONS WAS BECAUSE OF THE TREMENDOUS AMOUNT OF NEW CONSTRUCTION THAT WE HAD WE HAD OVER 600 MILLION, OR ABOUT $600 MILLION OF NEW CONSTRUCTION ADDED TO THE ROLE THIS YEAR. SO THAT HELPED US A LOT. BUT THAT. ORANGE THE CAPITAL DEDICATED IS REALLY INTENDED FOR MAJOR CAPITAL PROJECTS. IT'S NOT INTENDED FOR EQUIPMENT OR OTHER TYPES OF THINGS LIKE THAT. HELL, NO, IT BENNETT'S SEGWAYS INTO MY LAST TWO QUESTIONS. OKAY THEM IS WHEN YOU LOOK BEYOND THE FIVE YEARS AS WE GET OUR GROWTH SORT OF STABILIZED, AND NOW IT'S JUST SORT OF MAINTENANCE. HOW DOES THIS CAPITAL FUND AND TRANSITION INTO MAINTAINING AND THE INFRASTRUCTURE THAT WE HAVE NOW BUILT AND INFRASTRUCTURE THAT IS ALREADY MAYBE NEEDING TO BE UPGRADED INTO ARE MAINTAINED. SO AS YOU THINK THROUGH BEYOND AND IT'S MORE PHILOSOPHICAL QUESTION, BUT I'M CURIOUS AS TO HOW THAT WORKS BECAUSE THAT'S ONE OF MY CONCERNS IS THAT AS A CITIZEN IS WE DIDN'T BUILD BILL WHILE WE GOT THIS GREAT GROWTH, BUT THEN HOW DO WE MAKE SURE THAT WE'RE RESERVING LONG TERMS THAT WE CAN KEEP THE INFRASTRUCTURE WORLD CLASS AND KEEP IT UPDATED? WELL, I THINK IT PLAYS RIGHT INTO THAT BECAUSE UH, YOU'RE ABSOLUTELY RIGHT. BUT[00:30:07]
I CAN TELL YOU FROM PERSONAL EXPERIENCE THAT DOING A BUNCH OF PANEL REPLACEMENTS TO TAKE A CONVERT ROAD THAT IS RATED AT A 70 BACK UP TO AN 85 OR 90 IS A WHOLE LOT LESS EXPENSIVE. THEN TAKING A TWO LANE COUNTRY ROAD ACQUIRING ALL THE RIGHT AWAY NECESSARY TO WIDEN IT TO A 46 LANE ROAD. AND UH AND THEN PUTTING IN A CONCRETE ROAD WITH NICE LANDSCAPED MEDIANS. UH THE MAINTENANCE IS INCREDIBLY IMPORTANT. AND ONE OF THE THINGS THAT WILL BE LOOKING AT IS DEVELOPING AN INFRASTRUCTURE MANAGEMENT ASSESSMENT PROGRAM GOING FORWARD WHERE WE CAN EVALUATE ON A PERIODIC BASIS. ARE WE KEEPING THAT. ROAD RATING ABOUT EVEN OVER TIME. BUT. IT'S NOT GOING TO BE QUITE AS EXPENSIVE AS BUILDING FROM SCRATCH THE FIRST TIME, PARTICULARLY WHEN YOU CONSIDER THE LAND ACQUISITIONS THAT WE'VE HAD MAKE IN ORDER TO GET THE RIGHT AWAY. SO WHAT WE WOULD EXPECT IS GOING FORWARD AS WE REACH BUILD OUT. BUT AS WE'RE ALSO BUILDING SOME OF THE FACILITIES THERE ARE CITIZENS WILL WANT LIKE A NEW LIBRARY LIKE A SENIOR CENTER AND A REC CENTER. AND THOSE REQUIRE STAFFING. THERE MAY BE A LITTLE BIT OF A SHIFT OF THAT CAPITAL DEDICATED BACK TO THE GENERAL FUND WANTS THE BIG PROJECTS ARE DONE. WE DON'T KNOW YET. BUT LIKE CREATING THAT CAPITAL DEDICATED, IT ALLOWS US TO KEEP OUR OPERATIONS LEAN. AND PUT THE MAJORITY OF OUR TAX RATE INTO INVESTING IN THE FUTURE. NO I LIKE THAT. AND UH, THAT TRIGGERED ONE MORE QUESTION AND THEN I'LL THEN I'LL PAUSE AND TURNED OVER SOMEONE ELSE. ON THE CAPITAL FUND AGAIN GOING BACK TO THAT PARTICULAR PIECE. HOW DO WE MAKE SURE THAT IT'S UM RESERVED FOR THE PURPOSE AND NOT JUST USED FOR A RAINY DAY FUND OR WHAT'S THE RULES THAT SORT OF ENSURE THAT THIS IS REALLY USED FOR THE MAJOR CAPITAL PROJECTS THAT IT'S DEFINED NOW USING IT. THIS COUNCIL IS IT'S COMPOSED TODAY. THIS YEAR'S REPORT ABOUT THE THIRD COUNCIL FOURTH COUNCIL AS WE APPROACH BUILD OUT OVER THE NEXT, YOU KNOW 5 10 YEARS.IF THIS THING NEEDS TO LAST THAT LONG, HOW DO WE MAKE SURE THAT IT? THERE'S TRANSPARENCY AND THERE'S GOVERNANCE AROUND OR COORDINATES OF AROUND HOW THAT FUND IS ACTUALLY USED OR HAVE THERE BEEN PUT IN THOSE TYPE OF POLICIES? PROCEDURES SURE, SURE . I MEAN, OBVIOUSLY, THE COUNCIL PLAYS A HUGE ROLE IN THAT. BECAUSE THEY ARE THE ONES THAT PRIORITIZE IT. AND WE INTEND TO HAVE. AH YOU KNOW THAT ANNUAL PRIORITIZATION OF THE CAPITAL FUND. JUST BUILT IN AN INSTITUTIONALIZED INTO OUR BUDGET PROCESS. ANOTHER THING THAT WE COULDN'T DO IT THIS YEAR. BUT I WAS A LITTLE BIT SURPRISED THAT AS WE ADOPT THE BUDGET, WE ADOPT INDIVIDUAL PROJECTS AS YOU'LL SEE IN THE BUDGET ORDINANCE ON NEXT TUESDAY'S MEETING, BUT WE DON'T HAVE CAPITAL PROJECTS FUNDS THAT ARE PART OF THE ANNUAL BUDGET PROCESS AND SO WE'RE GOING TO BE CREATING MORE OF THAT CAPITAL PROGRAM AND CAPITAL MONITORING UH THEN WE MAY HAVE DONE IN THE PAST. AND SO I THINK THAT WILL HELP TO BUT A LOT OF IT JUST COMES DOWN TO CHARACTER INSTITUTIONALIZING RECOGNIZING THE NEEDS AND THEN BUDGETING FOR IT. AND THEN AS WE PHASE IN AND MONITORING SYSTEM IN TERMS OF OUR INFRASTRUCTURE QUALITY. THE SOCIETY OF CIVIL ENGINEERS USES , YOU KNOW, BASICALLY AN ACADEMIC GRADING OF 1 200. THAT SEEMS TO WORK PRETTY WELL AND IT'S UNDERSTANDABLE TO PEOPLE AND AS WE START COMING BACK AS WE GET MORE ROADS BUILT, AND WE START MAINTAINING THAT I THINK. ALL THOSE PROGRAMS WILL HELP PROVIDE THAT DISCIPLINE TO CONTINUE. TO PUT THE MONEY WHERE IT'S MOST NEEDED. OKAY THANK YOU FOR THAT, BECAUSE I THINK THAT WAS NO AGAIN MY CONCERN. THIS IS A HAVING TO TRANSPARENCY AND MAKING SURE THAT THESE FUNDS ARE
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GONNA BE RESERVED TO MAKE SURE THAT NOT THIS COUNCIL FOR SAY, BUT FUTURE COUNCILS ARE DRIVING THE PURPOSE OF THOSE. AND SO IT SOUNDS LIKE INSTITUTIONALIZING MEANS ALSO, MAYBE PUTTING SOME PROCEDURES AND TRANSPARENCY OF FINANCIAL REPORTING AROUND THAT, AND MY LAST QUESTION IS AND YOU MAY NOT BE ABLE TO ADDRESS IT SPECIFICALLY, AND I'M SETTING ASIDE ALL THE PUBLIC SAFETY REQUESTS AS STAFF ADS, BUT HAVE WE TRULY EVALUATED? YOU KNOW IF THERE'S THIS FEAR, AS YOU HAD SAID OF RECESSION COMING AND MAY BE IMPACTING SALES TAX REVENUE, AND WE'VE INCORPORATED LOWER OR VIRTUALLY FLAT. FEES FROM PERMITS AND ALL THE THINGS THAT WE'RE EXPECTING TO SORT OF, FLATTEN OUT OR DECLINE OVER TIME, JUST AS WE START TO MATURE. HAVE WE REALLY THOUGHT THROUGH? CONTRACTORS AND VENDORS. UH INSTEAD OF ADDING PERMANENT STAFF AND SOME OF THESE POSITIONS TO UNTIL WE REALLY HAVE A BETTER CLARITY ON SOME OF THE INFRASTRUCTURE LIKE WE'RE GOING TO BUILD A FACILITY FOR PARKS AND RECREATION IF THAT'S GOT TO BE STAFFED. YOU KNOW IN THE FUTURE OR WHATEVER THOSE STAFFING NEEDS ARE IN THE FUTURE. HAVE WE REALLY EVALUATE THE CURRENT NEEDS? AGAINST AN ALTERNATIVE STAFFING SOLUTION. ASSUMING WE NEED THOSE TYPE OF RESOURCES DO THEY HAVE TO BE PERMANENT ADS RIGHT NOW? WAS THERE ENOUGH VALUATION OR A PROCESS GONE THROUGH ON SOME OF THOSE GET NON PUBLIC SAFETY RELATED POSITION? I THINK WHAT YOU'RE GOING TO SEE DOUG IS THAT'S A MANUAL PROCESS OF LOOKING AT THAT WE ACTUALLY WENT THE OPPOSITE DIRECTION. THIS YEAR. BECAUSE OF WHAT WE WERE SPENDING WITH THE PRIVATE SPECT PRIVATE SECTOR ON BUILDING INSPECTIONS. AND. IT WAS DETERMINED THAT WE COULD DO IT MUCH LESS EXPENSIVELY IN HOUSE AND SO WE TOOK THAT IN HOUSE AND IT'S REALLY A JUST, YOU KNOW.AREA BY AREA DECISION WHAT I CAN TELL YOU WE'VE DONE IS WE'VE INSTITUTED FOR THE FIRST TIME, A FIVE YEAR STAFFING PLAN WHERE WE SHOW WHAT THE DEPARTMENT REQUESTS HAVE BEEN FOR THE NEXT FIVE YEARS. AND WE GIVE COUNSEL A LOOK AT THAT. AT THE SAME TIME WE GIVE THEM A LOOK AT THE CAPITAL NEEDS AND SO THEY BEEN PROVIDING US FEEDBACK ON WHAT THEY THINK IS REALISTIC AND TERMS OF STAFFING. AND AS WE LOOK, CONTINUE TO LOOK OUT FIVE YEARS BECAUSE NEXT YEAR WILL ADD ANOTHER YEAR TO IT WILL ALWAYS BE LOOKING AT FIVE YEARS OUT. I THINK THAT'S GOING TO HELP, UH, WITH DETERMINING YOU KNOW HOW? HOW FAST CAN WE ADD STAFF AND HOW CAN WE OPERATE MOST EFFICIENTLY, BUT I CAN I CAN TELL YOU IT. IT REALLY DEPENDS ON UM THE INDIVIDUAL DEPARTMENT IN TERMS OF IN HOUSE VERSUS OUTSOURCING IT AND I THINK THAT'S REALLY AN AREA BY AREA AND YEAR BY YEAR DECISION. NO, I AGREE. IT'S JUST AS YOU AS YOU USED PROPERTY INSPECTIONS VERY INTERESTING AS WE EXPECT BUILDING ACTIVITY GO DOWN OVER THE NEXT, YOU KNOW, LET'S SAY 5 TO 7 YEARS, ADDING STAFF UM, AND THEN ADDING INCREASES AND BENEFITS OVER FIVE YEARS, SO I'M REALLY GLAD TO HEAR THEY'RE GETTING PROJECTION OF REPLACE FIVE YEARS. BECAUSE YOU MIGHT FIND WHEN YOU LOOK AT THAT FTE COST DEMAND REALLY DRIVES DOWN. YOU MAY NOT REALLY NEED TO JUSTIFY MORE THAN IF IT'S EVEN. IT'S A LITTLE BIT MORE EXPENSIVE IN THE VERSUS THE CONTRACTOR, BUT THANK YOU FOR YOUR TIME. THANKS FOR THE PRESENTATION AND ENTERTAINING MY NUMEROUS QUESTIONS THERE. I'M GONNA GIVE BACK THE FLOOR. THANK YOU SO MUCH. PLEASURE. NO MORE ONLINE.
ANY LAST QUESTIONS. MAYOR. DO YOU WANT TO CLOSE THIS OUT OR. WHAT WAS I THINKING? ASKING A POLITICIAN IF HE WANTS TO TALK, ADDRESSED THAT BOOKS HERE. THANK YOU FOR BEING HERE AND THE STAFF FOR BOB. THANK YOU FOR PUTTING THAT TOGETHER. UH, WHAT YOU SEE IS A THOUGHTFUL, WELL LAID OUT PLAN TO, UH RESPONSIBLY USE THE CITIZENS TAX DOLLARS TO BUILD THE INFRASTRUCTURE NEEDS THAT THIS COMMUNITY IS DESPERATE TO HAVE. SO UM, YOU KNOW, TO DOUG CHARLES QUESTIONS AND THINGS LIKE THAT. IT'S A FIVE YEAR PLAN IS NOT NEXT YEAR'S PLAN, AND THIS IS WHAT THE COUNCIL HAS STOOD BEHIND. AND BOB. YOU AND YOUR TEAM HAVE DONE A GREAT JOB OF PRESENTING THIS FORWARD. SO THE LAST THING I WANT TO SAY IS THAT THE TO THE CITIZENS, YOU HAVE ANOTHER OPPORTUNITY TO, UH VISIT WITH THIS BUDGET, AND THAT'S ON THE 13TH. SO YOU'LL SEE A LOT OF THIS SAME TYPE OF
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THING ALL OVER AGAIN. BUT THAT'S A PUBLIC HEARING ON THE ON SEPTEMBER 13TH AT THE COUNCIL MEETING. SO THANK YOU, EVERYBODY FOR BEING HERE THIS EVENING. BOB.* This transcript was compiled from uncorrected Closed Captioning.