[9. Conduct a public hearing to receive public input, consider such input, and consider and act upon an ordinance adopting the Fiscal Year (FY) 2023-2024 Annual Operating and Capital Project Funds budgets and five-year Capital Improvement Program for the fiscal year beginning October 1, 2023, and ending September 30, 2024. (RBS/CL)]

551.007 TEXAS GOVERNMENT CODE. INDIVIDUALS WHAT WISHING TO ADDRESS THE COUNCIL FOR ITEMS LISTED AS PUBLIC HEARINGS WILL BE RECOGNIZED WHEN THE PUBLIC HEARING IS OPEN. ITEM NUMBER NINE IS TO CONDUCT A PUBLIC HEARING TO RECEIVE PUBLIC INPUT , CONSIDER SUCH INPUT AND CONSIDER AND ACT UPON AN ORDINANCE ADOPTING THE FY 2023 2024 ANNUAL OPERATING CAPITAL PROJECT FUND BUDGETS AND THE FIVE YEAR CAPITAL IMPROVEMENT PROGRAM FOR THE FISCAL YEAR BEGINNING OCTOBER 1ST 2023 ENDING SEPTEMBER 30TH 2024. MR BOB SCOTT. THANK YOU, MAYOR, MAYOR AND COUNCIL AND CITIZENS IN ATTENDANCE. THE BOTH OF TEXAS LOCAL GOVERNMENT CODE AND THE TEXAS TAX CODE. UH HAVE REQUIREMENTS REGARDING THE BUDGET. WE HAVE A REQUIREMENT FOR A PUBLIC HEARING FOR THE ADOPTION OF THE BUDGET. WE HAVE A REQUIREMENT FOR A PUBLIC HEARING FOR ADOPTION OF THE TAX RATES. SO WHAT WE'RE GOING TO DO TONIGHT? IS DO ONE PRESENTATION.

AND THEN, UH, AS WE ACT ON AGENDA NINE. WE CAN JUST GO STRAIGHT INTO THE PUBLIC HEARING FOR THE ADOPTION OF THE TAX RATE. SO JUST QUICKLY SUMMARIZE WHERE WE ARE. UH WE PRESENTED PRELIMINARY BUDGET TOWN COUNCIL. TOWN COUNCIL APPROVED ALL THE ACTION ITEMS, INCLUDING ADVERTISING FOR TONIGHT'S PUBLIC HEARING. UH WE ALSO SENT. THE PRELIMINARY BUDGET BACK TO THE C IP IN FINANCE SUBCOMMITTEES. UH THEN WE MET. AH! ON THE 22ND AND INCORPORATED RECOMMENDED CHANGES INTO THE BUDGET. AND THAT IS WHAT WE'RE HERE TO TALK ABOUT. TONIGHT WE'RE HAVING THE ACTUAL FORMAL PUBLIC HEARING ALSO IN THE INTERIM ON AUGUST 31ST. WE HAD A TOWN HALL MEETING WHICH GAVE US GOOD OPPORTUNITY TO DISCUSS THE BUDGET. UH WITH SEVERAL CITIZENS IN ATTENDANCE, AND SO THE BUDGET IS BASED ON THE TOWN COUNCIL STRATEGIC VISION. AND THE STRATEGIC VISION THAT ITS BEAUTY IS ITS SIMPLICITY. IT HAS FIVE ITEMS, ACCELERATION OF INFRASTRUCTURE.

DEVELOPMENT OF DOWNTOWN PROSPEROUS AT DESTINATION. ENSURE THE TOWN'S COMMERCIAL CORRIDORS ARE READY FOR DEVELOPMENT. CONTINUE TO PROVIDE EXCELLENT MUNICIPAL SERVICES AND THEN WORK TOWARDS A GROWING AND DIVERSIFIED TAX BASE. AND REALLY, WHEN YOU THINK ABOUT THESE ITEMS, I'M GOING TO KEEP COMING BACK TO ITEM NUMBER ONE BECAUSE WE'RE PROSPER IS IN ITS GROWTH CYCLE. RIGHT NOW. A LOT OF IT IS ABOUT PUTTING THE INFRASTRUCTURE IN PLACE TO HANDLE BOTH THE GROWTH THAT HAS ALREADY TAKEN PLACE. AND THEN PREPARING FOR THE GROWTH THAT WE KNOW WILL TAKE PLACE IN TERMS OF THE COMMERCIAL CORRIDORS. ETCETERA. SO TALKING ABOUT THE BUDGET BRIEF. WE MAY, UH, HAVE A SMALL TOWN FIELD, BUT THE REALITY IS WE ARE LOOKING AT OPERATIONS OF OVER $100 MILLION AND I'VE LISTED THE CATEGORIES FOR THOSE OPERATIONS. UH, SPLIT FAIRLY EVENLY BETWEEN GOVERNMENTAL OPERATIONS AND UTILITY OPERATIONS. WE ALSO HAVE DEBT SERVICE OF JUST UNDER $15 MILLION, AND WE'RE ADDING OVER $90 MILLION OF CAPITAL PROJECTS.

[00:15:04]

UH JUST THIS YEAR ALONE TO THE ALREADY CAPITAL PROJECTS UNDERWAY UTILITY CAPITAL PROJECTS. ART 72 MILLION, PRIMARILY BECAUSE OF THE DOUGH CREEK WASTEWATER TREATMENT PLANT CONTRIBUTION THAT'S REQUIRED BY OPPURTUNITY RIVER. AT THE WAR CHIEF. SO. OUR LARGEST REVENUE AND INCREDIBLY IMPORTANT REVENUE BECAUSE IT IS STABLE. IS PROPERTY TAXES AND PROPERTY TAXES HAVE BEEN SPLIT IN THIS BUDGET. THREE DIFFERENT WAYS. WE HAVE THE GENERAL FUND AT 45.

DEBT SERVICE AT 35. AND THEN THE REMAINING ALMOST 20% GOES TO WHAT WE CALL A PAY AS YOU GO.

CAREFUL, DEDICATED TAX LEVY. AND THAT PAY AS YOU GO. IT IS VITAL TO US ACCELERATING INFRASTRUCTURE AND PUTTING THE ASSETS IN PLACE TO SUPPORT THE GROWTH. AND SO IF YOU THINK ABOUT IT WE HAVE BASICALLY A WELL OVER HALF 55% OF THE BUDGET DEDICATED TO CAPITAL IMPROVEMENTS. WE EITHER ISSUED DEBT. TO BUILD THE CAPITAL IMPROVEMENTS AND PAY IT BACK THROUGH DEBT SERVICE, OR WE HAVE PAID YOU GO DEDICATED SO. WHAT ARE THE GENERAL FUND KEY REVENUE DRIVERS. WE HAVE FOUR REVENUES. IN THE GENERAL FUND THAT REPRESENT 90% OF ALL OUR REVENUE . AS I ALREADY MENTIONED, THE LARGEST IS PROPERTY TAX, FOLLOWED BY SALES TAX. THEN DEVELOPMENT FEES BECAUSE OF WHERE WE ARE IN OUR GROWTH CYCLE AND JUST THE AMOUNT OF NEW COMMERCIAL AND RESIDENTIAL DEVELOPMENT THAT TAKES PLACE EVERY YEAR. AND THEN FINALLY, FRANCHISE FEES, WHICH ARE CHARGES TO UTILITIES FOR USE OF OUR RIGHT AWAY. SO WE ARE INCREDIBLY FORTUNATE. WE HAD VERY HEALTHY PROPERTY TAX GROWTH OF 26. WAS SLIGHTLY MORE NEW GROWTH. UH THEN ON EXISTING PROPERTY INCREASES AND EXISTING VALUE. I WOULD IMAGINE THAT NOT MANY COMMUNITIES OF 40,000 POPULATION WOULD BE ABLE TO SAY THEY HAD MORE NEW GROWTH. THEN EXISTING VALUATION THAT JUST REALLY SHOWS YOU HOW DYNAMIC WE STILL ARE THAT AS WE'VE GOTTEN AS BIG AS WE ARE NEW GROWTH IS STILL MAJOR, UH, FACTOR IN TERMS OF OUR REVENUE INCREASES. SALES TAX WILL GROW 8.6. UH FROM 2023 YEAR IN PROJECTED AND WE'RE NOW LOOKING AT ABOUT $11 MILLION JUST UNDER 11 BILLION AND SALES TAX REVENUE FOR 2020. FOR NOW, WE'LL SAY SALES TAX HAS BEEN SLOWING A LITTLE BIT, AND WE DID REFLECT THAT IN THE BUDGET SALES TAX GROWTH. DEVELOPMENT FEES WERE SHOWING A DECLINE. AND. PART OF THAT IS A LITTLE BIT OF A SLOWDOWN IN NEW PERMITS, BUT ACTIVITY IS STILL AT A VERY HEALTHY LEVEL, AND THEN FRANCHISE FEES ARE EXPECTED TO GROW 11% DUE TO GROWTH OF RESIDENTS AND BUSINESSES. SO IN THE GENERAL FUND, WE HAVE TOTAL REVENUES OF 45.9 MILLION. THAT IS ACTUALLY A LITTLE BIT OF A DECREASE. HOWEVER THE REASON IT'S DECREASES LAST YEAR WE BUDGETED CAPITAL DEDICATED IN THE GENERAL FUND AND TRANSFERRED THE MONEY OVER THE CAPITAL PROJECTS. THIS YEAR. WE'RE SENDING IT STRAIGHT TO THE CAPITAL PROJECTS FUND. IF YOU ADJUST FOR THAT WE'RE LOOKING AT ABOUT A 15. GROWTH IN THE GENERAL FUND APPROPRIATIONS INCREASED PROPORTIONATELY, WITH RECURRING REVENUES EQUAL TO RECURRING EXPENDITURES. SO THAT'S ONE THING I WANT TO STRESS. IS THIS IS A BALANCED BUDGET. NOW. GIVEN THAT RECURRING EQUALS RECURRING. WE DO WANT TO UTILIZE AVAILABLE RESOURCES TO PROVIDE SERVICES AND SO ARE FUN BALANCE WAS SIGNIFICANTLY OVER THE 21% OF EXPENDITURE STANDARD THAT COUNCIL SET AS THE MINIMUM FUND BALANCE TO MAINTAIN. AND SO. ALL THE POSITIONS. WE ADDED THIS YEAR THEY HAD CAPITAL REQUIREMENTS. POLICE OFFICERS PATROL CAR. UH IN IN VEHICLE COMPUTERS, UH, RADIOS AND ON AND ON BODY ARMOR AND ON AND ON. AND

[00:20:07]

SO WE ACTUALLY DREW DOWN FUN BALANCE TO GET BACK TO THE 21% TARGET. SO THIS BUDGET IS BALANCED, BUT IT DOES HAVE A FUN BALANCE GROW DOWN FOR THE YEAR. IN TERMS OF MAJOR ADDITIONS. WE HAD MARKET ADJUSTMENTS OF OVER $600,000. WE ALSO. INVESTED IN IT. SECURITY SYSTEMS AND OTHER ENHANCEMENTS OF 292,000 UH, POLICE WAS THE MAJOR ADDITION FOR THE YEAR. WE, UH ADDED A STRATIFIED POLICING ACCOUNTABILITY MODEL. WHICH INCLUDED SIGNIFICANT NUMBER OF NEW POSITIONS, AND THAT WAS JUST UNDER 2.4 MILLION AND THEN FIRE EMERGENCY MANAGEMENT OBVIOUSLY IS BECOMING INCREDIBLY IMPORTANT AND WE MADE INCREASES THERE. STREETS WE MADE SOME ADDITIONS FOR SAFETY ENHANCEMENTS, AND WE'VE ALSO DONE THAT ON THE CAPITAL SIDE AND ICE PRE TREATMENT EQUIPMENT AND SUPPLIES ON PARKS. WE HAVE AN INCREASE IN COMMUNITY AND VANCE AND THEN TRAFFIC SENT SIGNAL COMMUNICATION UPGRADE FOR ENGINEERING. SO IN THE OTHER FUNDS. OUR PORTABLE WATER SUPPLIER NORTH TEXAS MUNICIPAL WATER DISTRICT IS PROPOSING AND OVER 11% INCREASE IN RATES. AND AS I ALREADY MENTIONED, UH, ONE OF OUR WASTE WATER SUPPLIERS. IS REQUIRING A SIGNIFICANT PLAN EXPANSION ON THE WEST SIDE. THAT WE HAVE TO MAKE CAPITAL CONTRIBUTIONS TO AND SO, WITH THESE SIGNIFICANT, UM, EXPENSE DRIVERS, WE HIRED A RATE CONSULTANT. AND THE RATE CONSULTANT IS PROJECTING DID A FIVE YEAR PROJECTION OF COSTS AND HIS PROJECT INDEED FOR MULTIPLE YEAR INCREASES, INCLUDING A BLENDED 7% RATE NEXT YEAR, 6% PER WATER 9. FOR WASTEWATER. THIS IS THE FIRST RATE INCREASE IN FOUR YEARS SINCE 2019 AND ONE OF THE THINGS I PROBABLY SHOULD POINT OUT IS WE ARE NOT A FOR PROFIT UTILITY . WE ARE A BREAK, EVEN UTILITY. AND SO BASICALLY WHAT HAPPENS AND THE REASON WE HADN'T RAISED RATES SINCE 2019 IS BECAUSE WE'VE HAD SOME HOT SUMMERS AND REVENUES WERE GREATER THAN PROJECTED. AND SO WE JUST WOULD LET THAT DRAW DOWN SOME AND NOW WITH THESE SIGNIFICANT RATE INCREASES, WE ARE RAISING RATES, BUT THE GOAL IS TO BRACE KLAY BREAK EVEN OVER TIME WHILE MAINTAINING OUR TARGET FUND BALANCES FOR EMERGENCIES, THEN SOLID WASTE FUND WAS CREATED LAST YEAR. AND WITH THE R P AWARD WILL BE SELF SUPPORTING. THROUGH RATES. STORMWATER DRAINAGE. WE'RE NOT INCREASING RATES, ALTHOUGH WE ARE ADDING A COUPLE OF POSITIONS. A LOT OF THAT RIP REVENUE INCREASES JUST SIMPLY THROUGH GROWTH. FOR PERSONNEL AND COMPENSATION CHANGES. THE LABOR MARKET IS VERY TIGHT, ESPECIALLY HERE IN THE DFW METROPLEX. WE ALL COMPETE FOR THE SAME TALENT. SO WE HAVE A MERIT INCREASE. BUDGETED AT 3% WE HAVE MARKET ADJUSTMENTS FOR PUBLIC SAFETY EMPLOYEES BASED ON OUR BENCHMARKING OF OTHER DEPARTMENTS AND THEN FOR ALL OTHER EMPLOYEES. WE'RE LOOKING AT THOSE EMPLOYEE GROUPS. THERE ARE 5% OR MORE UNDER THE MARKET , AND WE'RE JUST IN THEM. 5. SO HERE'S A LISTING OF ALL THE NEW POSITIONS. AND GETTING BACK TO THE ACCELERATING INFRASTRUCTURE BECAUSE THIS REALLY IS A KEY PART. OF THE BUDGET IN TERMS OF JUST GETTING ALL THE ROADS AND OTHER UH, INFRASTRUCTURE IN PLACE TO SUPPORT THAT GROWTH. AND I JUST I'M GOING TO TALK JUST BRIEFLY. FROM A FINANCIAL PERSPECTIVE HOW WE'VE ACCELERATED IT, AND THEN I'M GOING TO TURN IT OVER TO HUE AND WEB TO FINISH UP WITH SPECIFIC PROJECTS, BUT IN NOVEMBER OF 2020. THERE WAS BOND ELECTION AND IT WAS ORIGINALLY PROJECTED TO BE A 10 YEAR PROGRAM AND IT WAS 210 MILLION. IN THE FIRST THREE YEARS OF 30% OF THE WAY THROUGH THE PROGRAM. WE'VE ALREADY ISSUED $110 MILLION.

[00:25:06]

THAT'S 53% OF THE TOTAL 210. AND BY 2025. WE'RE LOOKING AT HAVING ISSUED 161 MILLION, WHICH WILL BE UH, 77% AND SO HALFWAY THROUGH THE PROGRAM WILL ALREADY HAVE ISSUED 77% NOW BECAUSE. A V INCREASED FAR GREATER THAN PROJECTIONS, BOTH IN TERMS OF GROWTH AND EXISTING VALUATIONS.

WE WERE ABLE TO ACCELERATE THE INFRASTRUCTURE WHILE STILL CUTTING THE TAX RATE. 50 BY A PENNY FOR 2 51 CENTS. AND SO WE HAD TOLD THE CITIZENS WE MIGHT BE AS HIGH AS 59.5. BUT WE'RE NOW AT 51. AND WE'RE NOT PROJECTING ANY NEED TO RAISE TAX RATES TO FINISH UP THE PROGRAM.

UM SO WHAT THAT MEANS IS WE'RE LOOKING AT A NEW BOND ELECTION PLAYING FOR NOVEMBER OF 2025.

AND IT ALSO MEANS CURRENTLY WE HAVE $70 MILLION OF ARTERIAL OR COLLECTOR. ROADWAYS WHICH IS THE EQUIVALENT OF 55.2 LANE MILES ARE UNDER CONSTRUCTION WITH ANOTHER EIGHT LANE MILES. UH FOR 2025, AND THEN THE WATER AND SEWER PROJECTS ALREADY UNDERWAY . 16.5 MILLION OR MAKING THAT CONTRIBUTION TO UPPER TRINITY FOR THE DOUGH. NO BRANCH WASTEWATER TREATMENT PLANT, BUT WE WILL NOT OWN THAT FACILITY WILL SIMPLY OWN RIGHTS TO SEND WASTEWATER TO THE FACILITY. AND WITH THAT, I'M GONNA TURN IT OVER. TWO. MR WEBB TO FINISH THIS UP BEFORE WE OPEN IT UP TO THE PUBLIC. GOOD EVENING AMERICA COUNCIL. UH, SO DO A LITTLE RECAP OF THE ARMY. OKAY? SOUNDS A LITTLE LOUD UP HERE. OKAY? WE'LL JUST RECAP A LITTLE BIT. THE INITIAL CPP SUBCOMMITTEE RECOMMENDATION THAT BOB MENTIONED EARLIER. AND THEN NOW, AFTER THAT, I'LL TALK A LITTLE BIT ABOUT OUR FOLLOW UP SUBCOMMITTEE MEETING THAT WE HAD LAST WEEK, AND, UH AS WE MOVE INTO THE PROJECTS BEING PROPOSED FOR THIS NEXT YEAR, SO THE INITIAL CP SUBMITTED SOME KIDNEY SUBCOMMITTEE RECOMMENDATION. IF YOU RECALL WE, UH THERE WAS SOME ADDITIONAL ITEMS THAT WERE REQUESTED IN THE BUDGET THAT GOT MOVED OVER INTO THE CAPITAL DEDICATION PORTION OF THE BUDGET THAT INCLUDED THE LIST HERE OF THE 1.5 MILLION MOVING FOR FIRE STATION NUMBER FOUR JUST TO MOVE THAT PORTION OF FUNDING OUT TO FY 25. WE INCREASED THE PROSPER TRAIL SCREENING FROM 300,000 TO 750,000. YOU KNOW, INCLUDED THE STAR TRAIL ROAD REPAIRS OF 1.45 MILLION THE FINISH OUT OF TOWN HALL ON THE 2ND AND 1ST AND 2ND FLOORS OF 650,000. FUNDING THE FRONTIER PARK PUN UPON REPAIRS AT 473,000. WE PROPOSED TO DO A 500,000 TOWARDS ACQUIRED ZONE FOR HISTORY. THE INITIAL RECOMMENDATION WAS TO MOVE THAT TO FY 25. AND THEN I HAD A N T T A PAYMENT PENDING IN FY 25 DEPENDING ON THE NEGOTIATIONS AND APPROVE AN AGREEMENT WITH NT TO AND THAT'S WHERE THE BRAIDED RAMPS OVER 3 80. THEN THERE WAS A REMAINING 2.6 MILLION OF CAPITAL. DEDICATED FUNDS, UH, WAS TALKING ABOUT STEADY SIDE FOR SPECIFIC TRAFFIC IMPROVEMENT PROJECT THAT WOULD COME ALONG DURING THE YEAR. WHEN WE MET LAST WEEK, WE HAD DISCUSSION TO FURTHER ALLOCATE THAT 2.6 MILLION THAT I MENTIONED ON THE TRAFFIC PROJECTS AS WELL. THERE WAS AN ADDITIONAL 6.6 MILLION.

AH THAT WAS A AVAILABLE FOR PROGRAMMING AT THAT TIME. SO I WILL ASK THE COUNCIL MEMBER CARTON AS WELL AS COUNCIL MEMBER BARLEY BACK ME UP HERE IF I SAY ANYTHING WRONG? WHAT CAME OUT OF THAT SUBCOMMITTEE WAS TO REDUCE THE 2.6 MILLION THAT WE HAVE FOR TRAFFIC IMPROVEMENT PROJECTS AT TWO DOWN TO 1.4 MILLION. AND OF THAT ONE POINT 4,000,400 OF THAT. 400,000 WOULD BE FOR CROSSWALK, SIGNAGE, MARKINGS AND FLASHERS GETTING A LOT OF LOT OF REQUESTS ACROSS TOWN. AS I'M SURE YOU'RE AWARE FOR THOSE TYPES OF TREATMENTS. RECOMMENDATION WAS GO AHEAD AND MOVE THAT 500,000 THAT WE PREVIOUSLY HAD FOR THE QUIET ZONE OF HISTORY TO MOVE IT BACK FROM 25 BACK TO 24, JUST KNOWING THE TIME IT TAKES TO DEAL WITH THE RAILROAD WANT TO GO AND START THAT PROCESS. UM THE EXTENSION OF THE ROAD. THIS IS A ACTUALLY RESIDENT CAME TO US ASKING IF THERE WAS SOMETHING WE COULD DO AS AN INTERIM AND PROGRAM IMPROVEMENT ALONG THE ROAD, KNOWING THAT WE ARE DESIGNING THE ULTIMATE SIX LANES FROM 3 80 UP TO NEAR 13 85. AND

[00:30:03]

BECAUSE OF THE CURRENT EXISTING SOUTHBOUND BRIDGES THAT ARE THERE THEY THOSE BRIDGES WERE BUILT FOR THREE LANES AND SO THEY JUST SAID, WHY DON'T YOU JUST TACKLE ON THE SOUTHBOUND LANE? AND THAT WAY YOU CAN TAKE ONE SOUTH BALLET AND TO NORTH BOUND LANES IN THE INTERIM.

ENTIRELY AND SO WE THOUGHT THAT WAS A GREAT IDEA. WE LOOKED AT IT. AND SO I BROUGHT THAT TO THE C I P SUBCOMMITTEE AND THEY WERE IN SUPPORT OF THE 350,000 THAT WE ANTICIPATE TO DO THAT IMPROVEMENT. ALSO THE FUNDING THE DESIGN OF PROSPER TRAIL FROM COIT CUSTER, 4000. THAT'S MOVING THAT FROM THE OUTER YEARS STARTING TO WORK TO MAKE THE ADDITIONAL TWO LANES OF PROSPER TRAIL. UH TO COMPLETE THAT PROJECT TO MOVE THAT UP, AND THEN WE HAD ON HERE. THE ONE THIRD PAYMENT TO NTT A. IF YOU RECALL THE COST OF THE NT TO BRAID RAMPS IS A LITTLE OVER $9 MILLION THEY DID SEND AN AGREEMENT. WHICH WAS ACTUAL COST AT ABOUT 7.6 MILLION, SO ACTUAL COSTS WERE LESS THAN WHAT WE ANTICIPATED. AND WE BROUGHT THAT FOURTH BASED ON A CONVERSATION THAT CHUCK AND I HAD WITH THE INTENSITY A WITH THEIR SUPPORT. THEY DID RECOMMEND THAT DEFERRING THE FULL PAYMENT AND SUPPORTING TO THEIR BOARD PAYING THAT OUT. AND OVER THE NEXT THREE YEARS, SO I BROUGHT THAT TO THE C I P SUB COMMITTEE AND REQUESTED THEIR APPROVAL AND THAT'S PART OF THAT RECOMMENDATION IS TO MAKE THE FIRST PAYMENT THIS NEXT YEAR. UM AND THEN THE BALANCE OF FUNDS HERE YOU CAN SEE THE, UH THEY DISCUSSION WAS SETTING ASIDE SOME SOME FUNDING FOR AN INTERIM COMMUNITY CENTER. 2.25 MILLION THAT COULD BE ALLOCATED AS THE YEAR GOES ON AS THE NEED. THESE ARE AND I JUST FOUND IT ON THAT. ON THE FUNDING OF FOR THE PARTS OF PUBLIC WORKS WERE SHOWING THERE'S 1.2 MILLION COMING OUT OF THESE DEDICATED FUNDS OUT OF THE GENERAL FUND. TO GET STARTED ON DESIGN THERE ANOTHER DESIRE TO GET SOMETHING MOVING. GET SOMETHING SHOVEL READY? UH AND START THAT EARLY AND THEN THE BALANCE REMAINING HERE AT 580,680 FOR TO FIND SOME HIKING BIKE TRAILS THAT ARE PLANNED. THE UTILITY FUNDS PORTION OF THIS THERE WAS AN ADDITIONAL 2.1 MILLION. THAT WE DISCUSSED AND IT REALLY, UH ALLOCATED 600,000 OF THAT TOWARDS THE PARKS AND PUBLIC WORKS DESIGN AND I MENTIONED JUST A MOMENT AGO AND THE BALANCE WE LEFT TO KIND OF TO BE DETERMINED BECAUSE WE DO HAVE OUR IMPACT. P C I P UNDERWAY THAT UPDATE AND AT THE END OF THE MEETING, THERE WAS A POTENTIAL THAT THERE MIGHT BE SOMETHING OUT THERE THAT WE HAD ANTICIPATED. SO WE WERE. WE WILL LEAVE THAT AS A KIND OF AN UNALLOCATED BALANCE AT THIS POINT. BEFORE I MOVE ON. I WANT TO MAKE SURE THAT MISSED ANYTHING FROM THE CPP SUBCOMMITTEE OR IF THERE'S ANY QUESTIONS OR COMMENTS REGARDING ANY OF THOSE RECOMMENDATIONS. OKAY? SO AS FAR AS KIND OF THE FIVE YEAR OUTLOOK THAT YOU SEE IN THE IN THE BUDGET. UH THIS. I THINK THIS DOES HOPEFULLY CONVEY THE ACCELERATION OF INFRASTRUCTURE. IT SEEMS LIKE EVERYWHERE A LITTLE PIECE OF TOWN OVER THE NEXT FIVE YEARS IS GOING TO BE TOUCHED HER IMPACTED. SPECIFICALLY AS WHAT THE PROJECTS LOOK LIKE FOR THIS COMING YEAR IN THE BUDGET. REAL QUICKLY BROGUE AWARE OF WE'RE GOING TO DO HALF THE FUNDING FOR FIRST STREET, DNT COLEMAN. WE HAVE ANOTHER PROJECT TO DO THE CONNECTION OF TWO LANES TO TWO NORTH BOUND LANES THAT HAVE LEGACY NORTH FIRST STREET. UM WE HAVE THE COURT ROAD, THE LAND EASEMENTS FOR THE FOUR LANES AS WELL AS THE INTERSECTION IMPROVEMENT MONEY TO DO THAT PROJECT. I DO WANT TO MENTION THAT THE CRP CUT SUBCOMMITTEE DID ASK STAFF TO GO LOOK AND SEE IF THERE'S SOME COST SAVINGS TO LOOK AT, TOO. WHAT IT WOULD COST DIFFERENTIAL TO DO THE INTERSECTIONS BUT ALSO TO DO THE FOUR LANES IN BETWEEN PROSPER TRAIL AND FIRST STREET TO SEE, YOU KNOW, MAYBE BRING THAT BACK AS A POTENTIAL PROJECT VERSUS THE DOING THE INTERSECTIONS BEFORE NEXT SUMMER. I HAD A LEGACY ON ON THIS PROJECT BECAUSE THAT WASN'T THAT WAS ACCELERATED FUNDING LAST YEAR. BUT FOR US, YOU KNOW THAT WILL BE STARTED, YOU KNOW, IN FY 24 WE HAVE MONEY FOR THE U. S. 3 80 DECELERATION LANES. AND THEN THE START RAILROAD REPAIRS MENTIONED EARLIER. WE'VE GOT OUR TAIL PARKWAY PROJECT THAT'S GOING TO SUPPORT PROSPEROUS SCHOOL NUMBER FOUR FROM 3 82 THE FIRST STREET YOU CAN SEE THERE IS A THERE IS A NON TOWN FUNDING FROM THE SCHOOL DISTRICT FOR THAT. AND THEN THE NEXT TWO OR TRAFFIC SIGNALS THAT SUPPORT WHAT'S GOING ON THERE AT THAT CORNER FOR THE SCHOOL. AND THEN WITH THE EXPANSION OF DNT STARTING NEXT YEAR, WE TALKED ABOUT THE NEED TO IMPROVE THE TRAFFIC SIGNAL. DNT IN FRONT OF THE PARKWAY HAVE MONEY SET ASIDE THERE. AND THEN THE OTHER PROJECTS ON THE LIST THAT ARE IN ITALICS ARE THE ONES I MENTIONED THAT CAME OUT OF THE LAST SIP SUBCOMMITTEE RECOMMENDATIONS.

[00:35:05]

FOREST PARK PROJECTS. WE'RE SHOWING OUR LIQUID PRESERVE. PHASE TWO FOR US. THIS WAS CAPTURING SOME OF THE TOWN FUNDING THAT TO MAKE UP THE DIFFERENCE OF CLOSE TO $5 MILLION BUDGET FOR THAT PROJECT , AND WE WERE JUST TRYING TO CAPTURE THAT IN OUR BUDGET. THIS IS THE DELTA WHAT WAS PREVIOUSLY ALLOCATED THE DOWNTOWN PARK BROADWAY PARVIN DESIGN. UH WE SHOWED 50,000 IN HERE AND, UH, MADE A MISTAKE THAT THAT WAS ACTUALLY SUPPOSED TO BE PUSHED TO NEXT YEAR, SO, BUT IT'S FOR WHATEVER REASON THAT WILL BE THEIR AVAILABLE IF NEED BE. AND THEN WE HAD THE 9 MILLION. OF 18 MILLION FOR THE RAYMOND COMMUNITY PARK. 9 MILLION WAS ALLOCATED IN 23. THIS IS THE LAST OF THAT. FUNDING FOR RANDOM COMMITTEE PARK. THE WINDSONG PARKLAND FINAL PAYMENT. THE FRONTIER PARK POND REPAIRS TALKED ABOUT EARLIER. THE REALLOCATION OF THE U. S. THREE GREEN RIBBON FUNDING FOR THE MEDIAN LANDSCAPING THERE, WHICH IS THE 2.2 MILLION IS NON TOWN FUNDING. AND THE PROPER TRAIL SCREENING MENTIONED EARLIER. IN THE VARIOUS HIKING BIKE TRAILS THERE WAS THE REMAINING BALANCE OF THE RECOMMENDATIONS FOR THE LESS HAPPY SUBCOMMITTEE. THE FACILITY PROJECTS. THE BIG ONE IS THE LARGE AMOUNT FOR BOND FOR THE FIRE STATION NUMBER FOUR AGAIN JUST THIS DECISION IS STILL TO HAVE THE BALANCE OF THE 1.5 MILLION TO GET THE ALL IN $12.3 MILLION BUDGET. SHOWING 25 YEAR 2025. THE PARKS IN PUBLIC PARKING LOT IS STILL THERE FOR A MILLION TO FINISH THE FINISH OF THE TIER SPACES FOR 650,000. AND THEN THE LAST TWO PROJECTS IN ITALICS AGAIN HIGHLIGHT THE TWO THINGS ADDED SINCE THE LAST CRP SUBCOMMITTEE. YOU KNOW THE WATERSIDE. THE WATER PROJECTS MAINLY CONSIST OF THE IMPROVEMENTS TO THE LOW PRESSURE PLANE. THE PHASE TWO A THE FUNDING TO FINISH THAT PROJECT.

WE DO HAVE A COUPLE OF RELOCATIONS ALONG. SOME OF THE MAJOR ROADWAYS WITH 14 61 COMING ON THE TECH START THE MONEY TO DO THE CONSTRUCTION FOR THAT THAT'S ALREADY UNDER DESIGN AND IN THE D N T. A COUPLE OF LOCATIONS THERE WHERE WE'RE GOING TO HAVE TO DO SOME RELOCATIONS TO GET OUT OF OUR UTILITIES OUT OF THE WAY FOR THAT PROJECT. AND THEN YOU CAN SEE THE LAST TWO PROJECTS ON THE WATER, THE PARKS AND PUBLIC WORKS AND THE MASCULINE PROJECTS FOR THE LESS THE CRP SUBCOMMITTEE RECOMMENDATIONS. ON THE WASTEWATER PROJECTS. UH, BOB MENTIONED EARLIER. HAS TO DO MAJORITY HAVE TO DO WITH OPPORTUNITY. WE'VE GOT THE DOUGH BRANCH. PARALLEL INTERCEPTOR. THAT OPPORTUNITY IS SLATED TO CONSTRUCT. AS WELL AS THE ARE A PORTION OF A LITTLE FURTHER DOWN THE DEAL. BRANCH PHASE THREE WASTEWATER TREATMENT PLANT, WHICH IS ABOUT $55 MILLION PROJECT, SO YOU CAN SEE THAT'S THAT'S THAT'S THE LARGEST CONTRIBUTORS THERE AND THEN WE HAVE OUR UPPER DOPE BRANCH, WHICH IS THE SECOND PROJECT ON THAT WASTEWATER LIST FOR TYING IN TILL OVER TO THE CORNER OF FRONTIER PARKWAY, THE TOLLWAY.

AS IT MAKES ITS WAY OVER TO THE STADIUM. AND THEN THE WE HAVE THE WILSON CREEK WASTEWATER LINE THAT SUPPORTS THE FIRE STATION NUMBER FOUR. AND THEN I REIMBURSEMENT TO THE LIVE DEVELOPMENT FOR SOME UPGRADES. THEY DID TWO SANITARY SEWER LINES UNDERNEATH THEIR DEVELOPMENT. SO WITH THAT, I'D BE GLAD TO ANSWER ANY QUESTIONS YOU MAY HAVE ON ANY PROJECTS. I JUST WANT TO CONFIRM THAT COMMITTEE. YOU HAD OBVIOUSLY THE INITIAL MEETING THAT THE SECONDARY MEETING THAT WAS YOU GUYS ARE SATISFIED WITH EVERYTHING YOU THAT WE GOT PUT IN THERE. YES. AND JEFF WAS PART OF THIS AS WELL. THAT MEETING AS WELL. JUST A QUICK QUESTION IN REGARDS TO THE ORIGINAL THE MOST RECENT BOND ELECTION ARE THEIR PROJECTS THAT WERE LISTED ON THERE THAT WE DO NOT HAVE STARTED OR SLATED UM I BELIEVE ONE AND WE LOOKED AT WAS THE TRAINING FACILITY, PROBABLY ANOTHER ONE. THAT IS NOT STARTED . I BELIEVE THAT MAY BE THE ONLY MAJOR PROJECT. THAT'S A PART OF THE 2020 BOND. THEY WERE NOT TRYING TO MOVE FORWARD IS MAKING A SHOVEL READY. I THINK THAT WAS MAYBE SHOWED NEXT YEAR. OKAY? THINK THE DESIGN OF THAT IS NEXT YEAR OR THE NEXT NEXT YEAR. ANY OTHER QUESTIONS FOR HUMAN OR FOR BOB. OKAY? THEN, AT THIS TIME, I'LL GO AHEAD AND OPEN THE PUBLIC HEARING. THIS IS THIS WILL BE THE ONLY PUBLIC HEARING TO DISCUSS FISCAL YEAR 2023 2024 PROPOSED BUDGET. THE TOWN COUNCIL CONSIDERED THE PROPOSED BUDGET FIRST. FOLLOWED BY THE PUBLIC HEARING AND A VOTE ON THE PROPOSED TAX RATE. ONCE THE HEARING IS OPEN, THE PUBLIC IS ENCOURAGED TO EXPRESS THEIR VIEWS. THE PUBLIC HEARING IS NOW

[00:40:02]

OPEN FOR THE PROPOSED FISCAL YEAR. 2023 2024 BUDGET IS THERE ANYONE WHO WOULD LIKE TO SPEAK ON THIS ITEM? CLOSE THE PUBLIC HEARING AT THIS TIME COUNCIL. I NEED FURTHER DISCUSSION. YEAH I HAVE A COUPLE OF QUESTIONS. UM. TRYING TO THINK WHO WERE START HERE. UM. THIS IS FOR BOB, THEN TO IN REGARDS TO THE COMMENT ABOUT THE 2025. UPCOMING NEED FOR AN ADDITIONAL BOND ELECTION.

UM. IS THAT DRIVING ON FUTURE PROJECTS OR. YES THAT WOULD DRIVE PRIMARILY ON FUTURE PROJECTS. LET'S SEE IF I CAN FLIP OVER REAL QUICK. I WANT TO ACTUALLY CLARIFICATION. WE HAVEN'T CALLED FOR WHAT WE HAVEN'T SAID THAT WE'RE PROPOSING. THAT'S WHERE IN THE PLANNING PROCESSES UNDER. THE COUNCIL STRATEGIC VISION UNDER LONG. AH YEAH. YEAH, YOU CAN SEE MY READING GLASSES WEEK WE SAY INCORPORATE LONG TERM FACILITY PROGRAM AND STAFFING NEEDS THAT CANNOT BE COMPLETED IN THE SHORT TERM, SO THAT'S REALLY WHAT WHAT WERE TRYING. TO GET COUNSEL TO START THINKING ABOUT, BUT IT'S VERY MUCH IN THE FUTURE, BUT I THINK COUNCIL AS YOU DEVELOP YOUR STRATEGIC VISION. CLEARLY WAS LOOKING IN THAT DIRECTION. AND SO THAT'S WHY WE'RE SAYING THIS WOULD BE ABOUT THE RIGHT TIME AND THE ONE OF THE REASONS IT WOULD BE ABOUT THE RIGHT TIME. IS WE WANT TO KEEP A STABLE TAX RATE THAT'S PREDICTABLE. TO OUR TAXPAYERS.

AND IF WE DON'T DO A NEW BOND ELECTION IN A TIMELY MANNER. THEN ONCE WE RUN OUT OF EXISTING AUTHORIZATION WE WOULD, UH. HAVE TO PAUSE AND THEN THE TAX RATE WOULD GO DOWN. AND THEN IF WE WANTED TO UH, ISSUE MORE DEBT FOR THESE OTHER NEEDS THAN WE WOULD HAVE TO RAISE IT BACK. AND SO WHAT WE'RE TRYING TO DO IS HAVE A WELL THOUGHT OUT SMOOTH, UH, CAPITAL PROGRAM WHERE YOU ALWAYS KNOW, 345 YEARS IN ADVANCE. WHAT THE PLAN IS AND COMPLAINED BOTH FOR THE CAPITAL IMPROVEMENT ITSELF, AND THEN ALSO THE OPERATING IMPACTS. SO I THINK THIS IS GOES ON WITH THAT.

SO FOR THE ORIGINAL, UM PLAYING WAS FOR A 10 YEAR PROGRAM FOR TUNE IN 10 MILLION SO ARE WE GOING TO BE ISSUING THE ENTIRE 210 MILLION. AND WHAT WOULD BE PRIMARY. WILL IT BE FOCUSED ONLY ON THOSE BOND PROJECTS OR IS THAT JUST CAPACITY THAT WE'RE USER BASED ON THE BOND ELECTION . WE PLAN TO ISSUE THE ENTIRE 210 MILLION NOW. ONCE THE BOND AUTHOR IF THEY IF A NEW ELECTION IS HELD UH THEN IT WOULD BE THE COUNCIL'S CHOICE. TWO. FINISH OUT THE CURRENT BOND PROGRAM BEFORE STARTING ANY OF THE NEW ITEMS OR YOU MIGHT WANT TO START DESIGN ON SOME OF THE NEW ITEMS AND ISSUES SMALL PIECES OF THE NEW AUTHORIZATION TO START THE DESIGN ON THE NEW ITEMS, SO THERE IS YOU FINISH UP THE OLD BOND PROGRAM. YOU'RE ACTUALLY SHOVEL READY ON SEVERAL PROJECTS . BUT THAT'S ALL DISCUSSION FOR THE FUTURE. BUT WHAT WE'RE TRYING TO DO IS JUST START. THAT THOUGHT PROCESS SO THAT, UH, IT WON'T BE A SURPRISED ANYBODY AND WE CAN HAVE A VERY SMOOTH TRANSITION AS WE START TO FINISH UP. THE CURRENT PROGRAM. I THINK, UM. I'LL JUST MAKE A COUPLE OF COMMENTS INITIALLY QUESTION FOR BOB, BUT I THINK THAT THE REASON THAT REALLY TRIGGERED AN ADDITIONAL THOUGHT IN MY MIND HERE THAT MAYBE I HADN'T THOUGHT ABOUT PRIOR TO THIS AND OTHER MEETINGS IS THAT UM, YOU KNOW, WE'RE RUNNING AHEAD OF SCHEDULE. PART OF THAT IS BECAUSE I'M RIGHTFULLY SO WE'RE AGGRESSIVELY TRYING TO USE CASH OR CAPITAL DEDICATED FUNDS TO ACHIEVE THE GOALS WITHOUT INCREASING OUR DEBT. SO YOU KNOW, WE ALREADY HAVE A FAIRLY HIGH DEBT PER CAPITA NUMBER LIKE AND I CONFIRM WITH BOB BEFORE THAT, ALTHOUGH WE'RE PAYING SOMETHING'S OFF AND MOVING UP AND POPULATION IS GOING UP. WE'RE STILL GOING TO PROBABLY HAVE AROUND 53 5500. DOLLARS OF DEBT PER CAPITA, UM AND, UM, THAT'S RELATIVELY HIGH. SO UM

[00:45:03]

AND I APPLAUD STAFF FOR ALL THE EFFORTS AND ALSO THE CPC COMMITTEES, AND ALL OF US HERE, I THINK ARE COMPLETELY DEDICATED TO USING AS MUCH OF THAT MONEY AS WE CAN TO ACHIEVE OUR OBJECTIVES WITHOUT FURTHER ENCUMBERING DEBT OF POSSIBLE. OBVIOUSLY SOME OF THESE ARE LONG TERM PAYOFF PROJECTS, AND IT MAKES SENSE TO USE THAT I'M NOT OBJECTING TO THAT PIECE OF IT.

UM I THINK IT'S JUST WHEN I START LOOKING AT HOW THIS ALL ADDS UP AND HOW I CAN SEE WE'VE HAD SUCH A INCREASING NOT ONLY OUR VALUES, BUT ALSO, UM IN OUR NEW TAX ROLLS. UM IT JUST GIVES ME ADDITIONAL PAUSE. I THINK WHEN I'M LOOKING AT THIS, UM, AND TO CONSIDER MOVING FORWARD UNDER THE SAME TAX RATE UM WHEN . UM CLEARLY, WE HAVE CAPACITY. UM AND SOME OF THESE PROJECTS.

UM CAN'T MOVE FORWARD AS FAST AS PROBABLY WHAT WE MIGHT BE ABLE TO GET THEM STARTED. JUST BASED ON OUR YOU KNOW, WE'RE ALREADY AHEAD OF OUR ORIGINAL BOMB PROGRAM. WE'RE GOING TO BE FIVE YEARS AHEAD AGAIN. THOSE ARE ALL GOOD THINGS. I THINK WE NEED TO SIMPLE STRUCTURE. I'M NOT TRYING TO SAY THAT WE DON'T. UM IT JUST GETS HARDER AND HARDER FOR ME TO EXCEPT THERE WERE ROLLING ALL THIS MONEY INTO NEW THINGS EVERY YEAR AND NOT LOWERING THE RATE, AT LEAST SOME, AND SO I JUST WANTED TO KIND OF PUT THAT OUT. THERE ALSO WAS LOOKING AT UM YOU KNOW OUR DEBT MANAGEMENT POLICIES DIFFER 40% NOT TO BE MORE THAN THAT TO BE OUR DEBT MANAGEMENT POLICY. LIMIT AND SO THAT MEANS, YOU KNOW, OUR OVERALL TAX RATE COULD GO DOWN TO AS LOW AS 44 CENTS, AND WE'D STILL CURRENTLY BE WITHIN OUR POLICY. NOT THAT WE WANT TO BUMP UP AGAINST THAT. I'M NOT SUGGESTING THAT, BUT I MEAN, I THINK THAT THERE'S JUST SO MUCH ROOM HERE FOR US TO PRIORITIZE STUFF. I ALSO NOTICED AGAIN. I THINK IT'S VALUABLE THAT WE'RE WORKING ON THESE PROJECTS. I'M NOT SUGGESTING ANYTHING THAT'S ON OUR LIST IS FRIVOLOUS AT THIS POINT, BUT THEY ARE THERE ARE PLENTY OF THINGS THAT WE'RE ADDING THAT WEREN'T PART OF THE ORIGINAL BOND ELECTION. AND AT THE SAME TIME SIMPLY BECAUSE THERE'S CAPACITY. BUT THERE'S ALSO SOME OF THESE BOND PROJECTS THAT WE HAVEN'T EVEN STARTED YET. SO I DON'T KNOW IF THERE'S UM ANY APPETITE BY ANY OTHER MEMBERS ON THE COUNCIL TO, UM YOU KNOW, APPROACH IT, UM SOME SORT OF A COMPROMISE HERE ON THE TAX RATE. UM I KNOW IT'S LATE IN THE PROCESS, BUT I THINK, UM YOU KNOW THINGS THAT HAVE COME TO LIGHT. UM YOU KNOW, OVER THE SINCE THEIR ORIGINAL, UM PRESENTATION OF THE BUDGET. UM, JUST MAKES ME UNCOMFORTABLE, NOT AT LEAST CHECKING THE PULSE. SO I'LL ADDRESS SO ONE. I AGREE WITH YOUR COMMENTS. UH, AND THE THINGS THAT HAVE COME TO LIGHT UM AND THE NEED TO BE VERY CONSCIENTIOUS OF TAXPAYER DOLLARS. HOWEVER THE THAT WE AS THE FINANCE COMMITTEE AND IN THE C I P COMMITTEE HAVE LOOK AT THESE THINGS TO TRY AND PRIORITIZE THE PROJECTS AND THE BEST WAY POSSIBLE. I WOULD BE VERY HESITANT TO MAKE A CHANGE IN OUR PROJECTED TAX RATE. NOW ACTUALLY, WHAT WE'RE TALKING ABOUT ON THIS PARTICULAR ITEM IS THE BUDGET ITSELF. SO YEAH, WHICH DOES AFFECT I DON'T DISAGREE WITH YOU AT ALL. SO I JUST WANT TO MAKE IT CLEAR YOUR LOGIC. I COMPLETELY AGREE WITH I AM VERY HESITANT AT THIS POINT OF THE PROCESS TO MAKE A LAST MINUTE COURSE CORRECTION. THAT COULD NEGATIVELY AFFECT WHERE WE ARE. I BELIEVE THAT GOING FORWARD. YOUR POINTS ARE WELL TAKEN ALSO, THOUGH, THAT THAT'S MY OPINION. I DEFER TO THE REST OF THE COUNCIL ON THAT, TOO. WELL I AGREE WITH CHRIS AS WELL AND SOMEWHAT WITH DAVID, BUT, UH . TO ME SOMEWHAT BECAUSE I DO THINK THAT IT IS NOW IS, IN FACT , THE TIME TO MAKE THOSE DECISIONS. UH, IF WE'RE GOING TO DO SOMETHING. IT WOULD BE GREAT TO MAKE THE DECISIONS EARLIER, BUT THE DECISION AS TO THE TAX RATE ISN'T MADE UNTIL THIS MEETING. SO TO ME. NEW INFORMATION. CAME TO LIGHT OVER THE LAST FEW WEEKS AS TO ADDITIONAL FUNDS AVAILABLE TO THE TO THE TOWN. AND THAT HAS AN IMPACT THE FINANCE COMMITTEE HADN'T MET WITH REGARD TO THOSE FUNDS. THOSE ADDITIONAL FUNDS. THE DIFFERENCE BEING IF YOU PARDON? PARDON? MY INTERRUPTION IS THE FUNDS THAT ARE WERE TALKING ABOUT OR NON RECURRING ONE TRY. BUT THERE ARE ALSO 66 PLUS MILLION AND THE C I P COMMITTEE. HAD A VERY CHALLENGING TIME. ALLOCATING THE CAPITAL DEDICATED AMOUNT BECAUSE IT WAS AT 1.2 0.6 MILLION IN EXCESS CAPITAL DEDICATED AS WELL. SO WE HAD TOTAL ACCESS FUNDS OF ABOUT $9 MILLION. WOW 6.6 M. THAT IS ONE TIME EVENT. I

[00:50:09]

JUST WOULD AGREE WITH CHRIS THAT I THINK WE OUGHT TO GIVE SERIOUS CONSIDERATION EVEN IF IT'S ONLY KNOCKING 800,000 OUT OF OUR $15 MILLION WE HAVE IN CAPITAL DEDICATED FUNDS. REDUCING THAT BY 800,000 TO REDUCE THE RIGHT ONE CENT OR EVEN A MILLION SIX TO REDUCE THE RATE TWO CENTS.

AND I THINK THOSE DECISIONS CAN BE MADE EVEN AT THIS LAST MOMENT, WHICH IS WHEN THESE DECISIONS ARE MADE IN THIS ENVIRONMENT, SO I'M KIND OF WITH CHRIS ON THAT THAT I THINK WE OUGHT TO. THINK SERIOUSLY ABOUT MARKING 800,000 OUT OF THIS BUDGET. AND CHRIS MIGHT THINK IT'S A BIGGER NUMBER, BUT MY NUMBER WOULD BE TO KNOCK 800,000 OUT AND BRING THE RIGHT DOWN TO 50 CENTS. ALL THE COMMUNITIES AROUND US ARE DOING THAT ALL OF OUR VALUES. WE'VE SHOWN A GUN UP. 25% ARE REVENUES ARE GROWN. WE CAN'T EVEN SPEND THE MONEY FAST ENOUGH. SO I THINK WE HAVE TO. SERIOUSLY CONSIDER THAT. SO I HAVE A QUESTION AND I DON'T EVEN KNOW IF THIS TIES INTO WHAT WE'RE TALKING ABOUT AT THE MOMENT, BUT LOOKING AT THE GENERAL FINE SUMMARY PAGE AND LOOKING AT PARTICULARLY AT OF THE WINE AMOUNT OVER OVER UNDER MINIMUM RESERVE TARGET. THAT'S GOOD. UM IF YOU LOOK AT THE OUT YEARS NEXT, YOU KNOW, THIS YEAR? 75,004 62 ABOVE THE TARGET, BUT THEN THE NEXT FOUR YEARS YOU'RE LOOKING AT GOING BELOW. IS WHAT ? I'M INTERESTING. WE'RE GOING BELOW VARIOUS AMOUNTS, SO I'M JUST WONDERING AS WE'RE KIND OF DISCUSSING THIS RIGHT NOW. WHAT WOULD BE IF WE DON'T MAKE A CHANGE? HOW DOES THAT AMOUNT BECAUSE WE HAVE TO BE WE HAVE TO BE OUR RESERVE. CORRECT. YES YES , THAT WELL. 20% IS CHARTER REQUIREMENT SO THAT CAN'T BE CHANGED VERY QUICKLY. AND THEN THE 1% IS SET BY POLICY. SO YES, WE NEED TO BE AT THAT 21% 1 OF THE THINGS THAT YOU ARE SAYING IS IN PREVIOUS YEARS. WE WEREN'T ALWAYS VERY REALISTIC ABOUT THOSE OUT YEARS. FOR EXAMPLE, WE ONLY INCLUDED POLICE AND FIRE. PROJECTED STAFF EDITIONS. WE I DIDN'T HAVE ANY OTHER STAFF EDITIONS. IN THOSE PROJECTIONS. WE ALSO DIDN'T INCLUDE ALL OF THE, UH. NON RECURRING CAPITAL THAT WAS REQUIRED FOR THE NEW ADDITIONS. SO YOU ADD A PUBLIC WORKS. EMPLOYEE OR CREW, AND YOU'RE LOOKING AT PICKUP TRUCKS AND OTHER EQUIPMENT. AND SO NONE OF THAT HAD BEEN ADDED IN AND PREVIOUS YEARS AND NOW WE ARE ADDING THAT IN AND THAT'S PART OF THE REASON WHY YOU'RE SEEING THAT REDUCTION. NOW. HAVING SAID THAT? WE COULD BALANCE BY SIMPLY NOT ADDING AS MANY POSITIONS AS WE'RE CURRENTLY SHOWING IN OUR FIVE YEAR STAFFING PLAN. SO THE FACT THAT WE ARE CURRENTLY SHOWING NEGATIVE WE'RE SAYING BASED ON WHAT THE DEPARTMENTS HAVE SUBMITTED TO US IN TERMS OF THE PERSONNEL, THEY SAY THEY'RE GOING TO NEED OVER THE NEXT FIVE YEARS AND BASED ON OUR GROWTH PROJECTIONS OF REVENUES, THIS IS WHAT IT LOOKS LIKE. BUT OF COURSE WE WOULD BRING BACK TO YOU NEXT YEAR. A BALANCED BUDGET. AND SO THE FACT THAT IT IS NEGATIVE I'VE BEEN DOING MULTI YEAR PROJECTIONS FOR MANY YEARS, AND TYPICALLY, THEY WILL BE NEGATIVE IN THOSE OUT YEARS BECAUSE YOU ARE CONSERVATIVE. ON THE REVENUE SIDE AND ON THE EXPENDITURE SIDE DEPARTMENTS WILL ASKED FOR THINGS. BUT IF THE REVENUE IS NOT THERE, YOU JUST ADJUST ACCORDINGLY. SO TONIGHT IF WE MADE THIS THIS CHANGE THAT COUNCIL, COTTON AND COLONEL. SPEAKING OF I MEAN, IS THAT HOW DOES THERE REFLECT IN THAT NUMBER. WE IT SOUNDS TO ME LIKE, WELL, I DON'T WANT TO. I DON'T WANT TO MISCHARACTERIZE THIS AND PUT WORDS IN YOUR MOUTH. THAT SOUNDS LIKE KIND OF LIKE, WELL, WE'LL FIX THAT WHEN WE GET THERE FOR 25, WHAT KIND OF FIX THAT WOULD GET THERE IN 26? HOW DOES ALL THAT WORK TOGETHER? YEAH AND AGAIN, THE REASON WE SHOW YOU THE SMALL TIME. WELL, YEARS IS SO THAT YOU CAN SEE THE ENTIRE PICTURE AND UNDERSTAND HOW TODAY'S DECISIONS WILL IMPACT THOSE FUTURE YEARS IF COUNSEL WANTS TO CUT THE TAX RATE, MY RECOMMENDATION WOULD BE TO CUT IT OUT OF CAPITAL DEDICATED AND SIMPLY MOVE THAT SOME OF THOSE PROJECTS BACK. OR ELIMINATE SOME OF THE PROJECTS. IT COULD GO EITHER WAY. UH THAT

[00:55:06]

WILL MEAN THAT YOU KNOW, IT WILL SLOW DOWN THE CAPITAL PROGRAM A LITTLE BIT, BUT THAT THAT IS VERY FEASIBLE. ANOTHER HOLD ON. SORRY TO INTERRUPT. BEFORE WE GO THERE. I JUST WANT TO KINDA INTERRUPT HERE BECAUSE WE'VE SPENT MONTHS PREPARING THIS BUDGET. WE'VE HAD MULTIPLE CONVERSATIONS. WE'VE LOOKED AT OUR TAX RATE. WE LOOKED AT OUR DEBT RATE. UM IF WE FIND FUNDS, I WOULD MUCH RATHER PAY OFF OUR DEBT RIGHT PUTS US IN A BETTER POSITION FOR RATINGS FOR WHEN WE NEED TO DRAW DOWN FOR FUTURE DEVELOPMENT. VERSUS MAKE A LAST MINUTE ADJUSTMENT. TO WHAT WE'VE PLANNED FOR, LIKE A COUPLE OF MONTHS. I THINK THE FINANCE COMMITTEE WAS AN AGREEMENT TO MAKE A RECOMMENDATION. I BELIEVE THAT YOU KNOW IT. SHOULD THERE BE FUNDS THAT WE HAVE AN EXCESS IN SALES TAX WERE CHUNKING DOWN PROJECTS AND GETTING AHEAD AND ACCELERATING. ARE DEVELOPMENT.

FUNDS THAT THE C I P COMMITTEE MAY FIND AND YOU KNOW, BY REALIGNING DIFFERENT PROJECTS. I WOULD MUCH RATHER BE PUT THAT FORWARD SHOVEL READY BUSINESS. RIGHT WHILE WE HAVE THE FUNDS TO DO THAT, SO THAT WHEN THOSE PROJECTS COME OPERATING GO, I JUST CASH CAUTION. THE COUNCIL ON THE LAST MINUTE HAIR TRIGGER CHANGE AFTER MONTHS OF PREPARATION. CAN I JUST SAY IF YOU THINGS ABOUT THE CAPITAL DEDICATED JUST BECAUSE IT'S A SUBCOMMITTEE, SO EVERYBODY DOESN'T GET TO HEAR SORT OF OUR THOUGHT PROCESS WHEN THIS ADDITIONAL DOLLARS, WHICH ARE ONE TIME DOLLARS, WE'RE NOT GOING TO GET ANOTHER SIX ADDITIONAL 6 MILLION NEXT YEAR AND THE NEXT YEAR AFTER THAT, OKAY, SO I THINK WE TOOK THAT AS AN OPPORTUNITY TO GET AHEAD OF SOME THINGS. YOU KNOW, YOU SEE THE POSSIBLE INTERIM YOU KNOW, COMMUNITY CENTER, KNOWING THAT EVEN IF WE PASS A BOND, AND IF WE PASSED A BOND IN 2025, WE WON'T HAVE A COMMUNITY CENTER FOR ANOTHER 3 TO 4 YEARS. WE'RE LOOKING AT AN OPPORTUNITY TO TAKE SOME MONEY AND GO AHEAD AND GET AHEAD OF PLANNING THE PUBLIC WORKS FACILITY AGAIN, INSTEAD OF HAVING A BOND ELECTION IN 25, THEN STARTING THE DESIGN PROCESS IT WE WE'VE ALREADY HAD A PRESENTATION THAT WE NEEDED. WE HAD THE NEEDS ASSESSMENT. SO WE, WE PAID A CONSULTANT TO TELL US WHAT WE NEED AND WE NEED AND NOW WE HAVE THE FUNDS TO GO AHEAD AND GET AHEAD OF THOSE THINGS. SO THAT WAS SORT OF OUR RATIONALE WITH THAT MONEY WAS TO GET IN FRONT OF INSTEAD OF REACTING, WHICH IS WHAT WE SEEM TO ALWAYS BE DOING RIGHT NOW IS WE'RE REACTING TO TRAFFIC OR REACTING TO PARKS NEEDS WHERE REACTING WE WANTED TO GO AHEAD AND, YOU KNOW, TAKE CARE OF THE NEEDS THAT WE HAVE IN THIS CURRENT BOND AND GET IN FRONT OF SOME FUTURE NEEDS. WE KNOW WE'RE GOING TO HAVE, UM, SO THAT'S SORT OF OUR RATIONALE. UNDERSTAND COMPLETELY WHAT YOU'RE SAYING. I'VE ALWAYS SAID FROM THE BEGINNING IF YOU CAN'T SPEND IT, GIVE IT BACK. BUT I YOU KNOW, I THINK AGAIN, IT'S THE TIMING FOR ME. IT'S JUST I THINK, I THINK WE'RE JUST LATE. AND ONE OTHER ALTERNATIVE WHICH ARE OFFER UP OUR CONSIDERATION. IT IS FOR THIS COUNCIL TO SIMPLY GIVE STAFF INSTRUCTIONS FOR NEXT YEAR. WE WILL BE BRINGING BACK THE MULTI YEAR BUDGET PROJECTIONS FOR NEXT YEAR.

PROBABLY IN FEBRUARY. AND IF COUNSEL WANTS TO HAVE A REDUCTION IN TAX RATE BASED ON WHAT WE'RE PROJECTING IN TERMS OF PROPERTY TAX INCREASES AND EVERYTHING. THAT WOULD BE A GOOD TIME TO DO IT BECAUSE THEN WE CAN BUILD IT INTO OUR PLANNING PROCESS AND MAKE SURE THAT WE'VE LOOKED AT ALL ASPECTS OF IT, SO THAT WOULD BE ANOTHER OPTION. UH STAFF IS READY TO IMPLEMENT ANY DIRECTION. THE COUNSEL WANTS TO GO. WE JUST WANT. YOU KNOW AND APPRECIATE THE FEEDBACK AND CONSIDERATION AND AH, YOU KNOW, WE CAN LOOK AT WHATEVER DIRECTION. I JUST WANT TO CLARIFY TO YOU KNOW THAT AGAIN. I COMPLETELY APPRECIATE THE PROCESS. I RESPECT THE PROCESS.

UM NOT ALL OF US INVOLVED OR ARE INVOLVED IN EVERY COMPONENT. UM AND YOU KNOW, AS CHARLES STATED, AND THAT THIS IS PART OF THE PROCESS. IT WOULD BE A LEGITIMATE TIME TO MAKE A CHANGE. SO I WILL CHALLENGE THAT STATEMENT. BUT, UM BECAUSE YOU KNOW, THIS IS OUR OPPORTUNITY TO LITIGATE IT. UM ALL TOGETHER, AND YOU KNOW, THAT'S SIMPLY WHAT I WAS SUGGESTING IS THAT WE CONSIDER IT AND AGAIN NOT OUT OF ANY DISRESPECT TO THE WORK THAT YOU GUYS HAVE DONE YOUR STAFF AND THEN I KNOW THAT THIS IS A LOT OF WORK AND A LOT OF WORK HAS GONE INTO IT. AND I'M CERTAINLY NOT CHALLENGING, UM IN THE WEEDS HERE. I'M TALKING MORE IN THE AGGREGATE AND DEFINITELY WOULD HAVE BEEN CONSIDERING SOMETHING IN REGARDS TO THE CAPITAL SPENDING. SO SOAKING DO

[01:00:03]

ME A FAVOR. LET'S GO BACK TO THE AGENDA ITEM. THAT'S CORRECT AGENDA. ITEM NUMBER NINE. OKAY SO WHAT THIS AGENDA ITEM IS THE BUDGET IS THE BUDGET. WE'RE TALKING ABOUT TAX RATES AND WHERE THEY WERE TALKING ABOUT THE BUDGET. SO I DO RECOGNIZE THAT CONNECTION ON ALL OF THIS.

BUT THE THIS COUNCIL HAS HAD AN OPPORTUNITY THROUGH TWO DIFFERENT SUBCOMMITTEES TO WEIGH IN ON THIS. AND THERE'S YOU KNOW, CHARLES IS A MEMBER OF BOTH COMMITTEES, SO YOU HAVE EXTRA ABILITY TO WEIGH IN ON THAT. THE REALITY IS, IF YOU WANT TO CUT THE TAX RATE, YOU'VE GOT THE OPPORTUNITY TO CUT IT. 7.5 CENTS. WITH THAT EXTRA MONEY, SO IF WE'RE GOING TO BE EFFECTIVE, AND WE DO WHAT WE JUST SAID. LET'S JUST CUT IT. 7.5 CENTS. RIGHT THERE. $6.5 MILLION DISAGREE, BUT THAT'S CORRECT. I KNOW YOU'RE BEING SARCASTIC, BUT I DON'T THINK THAT IS OF ANY VALUE. I WANT TO POINT OUT THAT IN THE LAST THREE WEEKS IN THE LAST THREE WEEKS WHILE IT WAS SAID WE'VE BEEN WORKING ON THIS FOR MONTHS IN THE LAST THREE WEEKS, I THINK THE CRP HAS HAS PULLED TOGETHER. AN ADDITIONAL $9 MILLION OF PROJECTS THAT WE DIDN'T HAVE UNTIL THE LAST 3 $9 MILLION. WE DIDN'T HAVE UNTIL THREE WEEKS AGO. AND SO THE IDEA THAT THIS IS NOT NOT NOT MONEY THAT WE'VE BEEN SHOULD HAVE KNOWN ABOUT IT A LONG TIME AGO, AND WE SHOULDN'T WE? WE PUSHED A LOT OF THINGS INTO THAT CRP BUDGET. UH BECAUSE THERE WAS 9 MILLION AVAILABLE IN THE LAST THREE WEEKS. THEY DIDN'T SOMETHING THAT'S BEEN WE'VE BEEN WORKING ON FOR MONTHS, AND IN FACT, WE HAD A HARD TIME COMING UP WITH THESE CRP DID. AND IN THAT GROUP . THAT GROUP, THEN PRESENTED IT, BUT FINANCE COMMITTEE HADN'T HAD A CHANCE TO VISIT ON THOSE MEN MILLION DOLLARS, MUCH LESS THAN 6 MILLION PORTION OF THAT THAT CAME AS A ONE TIME AFFAIR. I'M NOT LOOK, I'M NOT YOU KNOW, I LIKE TO GET PROJECTS GOING. I WANT TO DO THAT. I AGREE WITH PAYING DOWN DEBT WHERE WE CAN DON'T KNOW IF WE HAVE ANY DEBT REPAYABLE, YOU KNOW THAT'S A FUNCTION OF WHAT IS BECOMES REPAYABLE. AH MY PREFERENCES. LET'S SPEND IT ON CAPITAL PROJECTS. I'M JUST TELLING YOU FROM SITTING IN THOSE MEETINGS. WE SCRAMBLED. INCREDIBLY HARD TO COME UP WITH PROJECTS HERE. WHICH I THINK HAVE A VERY SOME OF WHICH ARE VERY UNLIKELY WE'RE GOING TO GET DONE NEXT YEAR. AND ALL THAT WOULD TAKE IS 800,000 OUT OF THE CAPITAL BUDGETS. KIND OF THE CAPITAL PROJECTS TO REDUCE 11 CENT. SO TO ME, IT WOULDN'T COST US JUST TO CLARIFY . OKAY OKAY. IT WASN'T FOR LACK OF PROJECTS IN OUTER YEARS THAT WE HAD A HARD TIME WITH IT WAS BECAUSE A LOT OF THOSE OUTER YEAR PROJECTS ARE CONSTRUCTION OR RIGHT AWAY ACQUISITION AND WE'RE STILL IN THE DESIGN PHASE OR WERE STILL IN A RIGHT AWAY PHASE. SO I JUST DON'T WANT THE PUBLIC TO HEAR THIS AND THINK. OH, WE'RE RUNNING OUT OF PROJECTS BECAUSE THAT IS NOT THE CASE. WE HAVE A LOT OF LOT OF LOT OF LOT OF LOT OF INFRASTRUCTURE PROJECTS. IT'S JUST THAT BECAUSE OF THE STAGES, SOME OF THEM WERE IN WE COULDN'T ALLOCATE. CRAIG STREET WAS ONE OF THEM. YOU KNOW, I WOULD HAVE SAID 3.3 MILLION IS CONSTRUCTION. LET'S DO IT RIGHT NOW. BUT IT ISN'T READY BECAUSE OF RIGHT AWAY HASN'T BEEN OBTAINED. SO I THINK I JUST DON'T WANT PEOPLE TO MISUNDERSTAND THAT AND THINK THAT WE DON'T HAVE ENOUGH PROJECTS BECAUSE WE HAVE PLENTY OF PROJECTS. WE NEED MONEY. IN FUTURE YEARS. I DON'T BELIEVE WE NEEDED THIS YEAR AND I BELIEVE WE'RE GOING TO HAVE SIGNIFICANT LEFTOVER FRONTS FROM THE CAPITAL DEDICATED ACCOUNT AT THE END OF THIS YEAR. AND SO THAT IS THE REASON I THINK YOU TURNED BACK SOME PORTION OF THAT TO THE RESIDENTS, THAT'S ALL AND I'D RATHER PAY OFF DEBT WITH IT. I'D RATHER I'D RATHER INVESTED IN OUR INFRASTRUCTURE. I JUST DON'T BELIEVE THAT WE CAN GET IT DONE.

YOU KNOW? AS HARD AS WE TRY TO GET THOSE PROJECTS THAT WE PUT ON HERE FOR PHILLIP $9 MILLION WORTH, AND WE KNOW HOW OUR PROJECTS HAVE RUN THEIR RUN BEHIND. SO IT'S UNLOCKED THAT'S NOT RUN OVER BUDGET. YEP PLENTY OF THEM. SO THAT'S MY ON THIS PARTICULAR WORKS WERE STILL ON THE BUDGET. SO YOU'RE MAKING A PROPOSAL TO REDUCE THE BUDGET BY 800 SOMETHING $1000. WHAT PROJECTS SHOULD WE TAKE OUT? HAVE A QUESTION FOR BOB. DO WE HAVE ANY SERIES 23? PLEASE FINISH THIS ONE. I THINK I'D SEND IT BACK TO THE C I P OR FINANCE COMMITTEE TO SAY WHAT? WHAT THEY'D PREFER, BUT IT'S EASY. WE JUST WE JUST STUBBED IN. YOU WANT TO LIST OF THE $9 MILLION OF PROJECTS THAT WE JUST STUCK IN AT THE LAST TIME THE LAST TWO WEEKS. THERE'S $9 MILLION WORTH OF PROJECTS WE STUCK IN THE LAST TWO WEEKS. TAKE SOME OF THAT. ANY 800,001 10TH OF THAT. DO WE HAVE ANY SERIES 2013 2014 DEBT THAT WE CAN THAT WILL COME UP THAT WE COULD PAY OFF. YOU KNOW OF, I KNOW THAT'S A THAT'S A LOADED QUESTION OFF THE TOP OF YOUR HEAD AND I UNDERSTAND IT. WE HAVE WE HAVE STRUCTURE OR DEBT. TYPICALLY HAS A TENURE CALL, AS YOU REFERRED TO 23. ISSUE WHICH WAS THE 2013 DEBT. THAT REFUNDING IS ALREADY BEEN DONE.

[01:05:11]

SO WHAT YOU WOULD BE TALKING ABOUT IS 24. AND COULD WE DO A REDEMPTION OF SOME OF THE CALL HERBAL DEBT THAT IS COMING? DO FOR 24? ABSOLUTELY IN FACT, THAT'S PART OF OUR PLAN FOR KEEPING THE TAX RATE STABLE. IS WE WOULD USE THAT AS AN OPTION TO, UH REACH A CERTAIN DEBT SERVICE LEVEL TO PAY OFF THAT DEBT. SO THAT'S ALWAYS AN OPTION, OKAY? OKAY THIS IS A LIVELY DISCUSSION. I THINK WE'VE GONE ON FOR QUITE A WHILE. I'M A CALL FOR A FIVE MINUTE RECESS AND WE'LL GET BACK TOGETHER AT 7 35. THANK YOU.

[01:16:59]

THANK YOU. WE ARE OUT OF RECESS NOW AT THIS TIME. AND WE ARE STILL ON ITEM NUMBER NINE, WHICH

[01:17:06]

IS THE DISCUSSION OF OUR PROPOSED BUDGET. FOLLOWED BY WILL BE A VOTE ON THE PROPOSED TAX RATES. COUNCIL WERE STILL IN DISCUSSION ON, UH AS CHARLES BROUGHT UP UH, POTENTIALLY REDUCING THE CAPITAL DEDICATED AMOUNT, SO WE'LL ENTERTAIN MOTIONS. THOUGHTS ANYTHING, BOB, DO YOU HAVE ANYTHING TO ADD TO THE CONVERSATION AT THIS PARTICULAR POINT? IF YOU ALLOW ME, I WOULD LIKE TO MAKE A MOTION AND IN HONOR OF ALL THE WORK THAT GOES INTO THE PROCESS.

THE TIMING I FEEL LIKE THE HAPPY MEDIUM, AND I WOULD LIKE TO MAKE A MOTION TO ACCEPT THE BUDGET AS PRESENTED, WITH THE EXCEPTION OF REMAND NG, UM, SOME OF THE CAPITAL DOLLARS BACK TO THE COMMITTEE IN REGARDS TO, UM SPECIFICALLY TO THE FUNDING OF THE INTERIM COMMUNITY CENTER THAT WE WOULD LOOK AT. IF THAT IS NOT A SOLUTION WITHIN THE BUDGET YEAR THAT THEY WOULD LOOK AT THAT. MONEY WOULD THEN BE PUT TOWARDS RETIREMENT OF DEBT THAT WOULD COME TO IN 2024. I'LL SECOND THAT ONE. IS IT? THAT MAKES SENSE. 2.5 MILLION LIKE THAT. PUT IT TODAY. YEAH WE'RE STILL GOING TO HAVE A DISCUSSION ABOUT MIKE. PARTIAL NOT GOOD. YES. AND I WOULD WANT TO CONSULT WITH OUR FINANCIAL ADVISOR. TO MAKE SURE THAT WE CAN ACTUALLY. HAVE THAT SERVICE OVER THE BUDGETED ABOUT THIS IS NOT SOMETHING THAT SO IN THE PAST WHEN WE USED TO COUNT BEFORE WHEN WE'VE USED CAPITAL DEDICATED FUNDS IN THE PAST TO REDUCE DEBT, I BELIEVE TO BUDGET CYCLES BEFORE THAT WAS NOT THE SAME AS WHAT THIS MOTION IS BUILT TO HIS SIGNIFICANTLY TIGHTENED UP, WHICH WAS PASSED TWO YEARS AGO HAS SIGNIFICANTLY TIGHTENED UP. THE DEBT SERVICE REQUIREMENTS AND HOW WE HAVE TO CALCULATE THIS SERVICE TAX RATE. I'M NOT SAYING WE CAN'T DO IT.

COUNCIL MEMBER CURRAN'S I JUST HAVEN'T HAD TIME TO RESEARCH IT. AND I DON'T WANT TO GIVE YOU ASSURANCES WHEN I'M NOT SURE MYSELF SO HOW ABOUT APPLYING IT TO THE TRES? I MEAN, AS AS I MENTIONED EARLIER. IF THE COUNCIL IS INCLINED TO CUT THE TAX RATE, THE SIMPLEST WAY TO DO THAT WOULD BE TO REDUCE THE CAPITAL DEDICATED LEVY BY WHATEVER MATCHY CHOOSE AND THEN REDUCE THE BUDGETED. AH CAPITAL PROJECTS FOR THE YEAR. BUT THAT ISN'T THAT ISN'T ALONG THE

[01:20:08]

MOTION ALONG THE LINES OF THE MOTION THAT CHRIS MADE. CHRIS WASN'T PROPOSING TO REDUCE THE CAPITAL DEDICATED HE'S PROPOSING TO REALLOCATE IT IF POSSIBLE. BUT YOU'RE SAYING YOU DON'T KNOW I JUST WHEN YOU HAVE A CHANGE LIKE THIS THAT HASN'T BEEN RESEARCHED. I JUST WANT TO BE VERY CAREFUL TAX LAW AND STATE LAW AND BUDGETS HAS GOTTEN VERY, VERY SPECIFIC AND RESTRICTIVE.

AND IF I HAD KNOWN IN ADVANCE, WE WOULD HAVE HAD AN ANSWER FOR YOU. WHAT IF I AMEND THE MOTION TO SAY IF ALLOWED BY LAW? TERRY, CAN YOU COMMENT ON BUT YEAH, HE'S RIGHT. I MEAN, I AGREE WITH BOB MICHAELS MOTION. AFFECTS DEBT RATE THE DEBT AMOUNT AND AGAIN. AGAIN RATHER THAN JUST TAKING A GUESS AT HOW THAT WHAT OUR FINANCIAL ADVISOR WOULD SUGGEST, AND I'M GOING TO DO THAT AS WELL. I THINK BOB SUMMARIZED CORRECTLY THAT IF WE'RE REDUCED 800,000 OF BUDGET SAY WHAT? A MILLION. WHATEVER IT IS, SAY WHATEVER YOU WANT TO REDUCE OUR BUDGET. AND THEN DO THE APPROPRIATE ACTION THE TAX RATE WHEN WE GET TO THAT, IN THAT MATTER, SOUNDS LIKE AND I DON'T WANT THAT WORDS IN YOUR MOUTH COUNSELOR CURRENT, BUT IT SOUNDS LIKE WE'RE TALKING ABOUT REALLOCATION. NOBODY WAS TALKING ABOUT REDUCING REDUCING THE BUDGET. SO WHAT I'M HEARING BOB, SAY IS THERE IS SOME. THERE ARE SOME REGULATORY ISSUES, POTENTIALLY AND I'M LOOKING, I GUESS FOR WHAT YOU SEE. OR CAN YOU MAKE A COMMENT AGAIN? I THINK THAT'S A FINANCIAL ADVISOR. QUESTION. I'M OKAY. SO WE HAVE A MOTION. WE HAVE A SECOND. WE HAVE AN OPINION FROM OUR ASSISTANT TOWN MANAGER, DIRECTOR OF FINANCE. IS THERE ANY OTHER COUNCIL DISCUSSION? THERE'S A MOTION NEED TO BE A AMENDED BASED ON THE COUNCIL FROM OUR ATTORNEY. I THINK SO. I THINK YOU KNOW, I ASKED CHRIS BASED ON WHAT YOU'RE HEARING. CHRIS IS THERE A AMENDMENT THAT YOU COULD BE COMFORTABLE WITH. PRODUCE WHAT ABOUT REDUCING THE AMOUNT FOR THE COMMUNITY COMMUNITY CENTER BY SOME AMOUNT. AND TAKING THAT AND ALLOCATING IT TO A ANOTHER DEDICATED ACCOUNT THAT WE WILL LOOK AT THE ABILITY TO APPLY THAT AGAINST DEAD AT SOME POINT. MAYBE JUST WITHDRAW THE MOTION AND KIND OF GO BACK TO THE DRAWING BOARD. BECAUSE WE'RE TALKING ABOUT A DIFFERENT MATTER THAN REALLY TWEAKING THAT MOTION IS IT WILL BE A SUBSTITUTE MOTION IN EFFECT. I WOULD TRY MY MOTION BASED ON LEGAL, OKAY? THAT WASN'T MY EMOTIONAL TRYING TO HELP CHRIS WITH HIS AND CHRIS, IF YOU'RE COMFORTABLE WITH WHAT I TRY THAT. I GUESS I'M LOOKING FOR ADVICE AND HOW CAN I ACCOMPLISH? THE MOTION WITHOUT AFFECTING UM THE WAY THE BUDGETS PREPARED. UM BECAUSE I MY OPINION THESE THESE CAPITAL SUBCOMMITTEE RECOMMENDATIONS ARE NOT REALLY CODIFIED IN THE BUDGET, RIGHT? IT'S THE AMOUNT SO LIKE IF THEY CHANGED THEIR MIND THAT HERE AND WANTED YOU SOME OF THESE AMOUNTS FOR SOMETHING ELSE IS THAT AGAINST THE BUDGET OR AGAINST, IT WOULD BE IT WOULD KEEP IN MIND. WE'VE ADOPTED CAPITAL PROJECT FUND BUDGETS THIS YEAR. AND IN THOSE CAPITAL PROJECT, FUND BUDGETS SAY LIST OUT THE SPECIFIC NEW PROJECTS BEING ADDED FOR THIS YEAR. AND SO IF THE CAPITAL COMMITTEE WAS TO WANT TO TAKE ONE. BUDGET BUDGETED PROJECT AWAY AND ADD A NEW PROJECT. THEN YOU COULDN'T DO THAT. NOW, OBVIOUSLY. IF YOU JUST DIDN'T DO SOMETHING THAT WAS APPROPRIATED . THEN THERE IS NOT A PROBLEM WITH THAT. BUT WHENEVER YOU ADD SOMETHING THAT HAS NOT BEEN BUDGED BY COUNSEL IN THE PAST, IT WOULD BE A BUDGET AND MEN. CHANCES ARE WE'RE GOING TO END UP WITH A BUDGET AMENDMENT ON A LOT OF THESE ITEMS IN THE CAPITAL. THAT WOULD DEDICATED ANYWAY, THAT'S MY OPINION. SO SO WHAT? IF THE MOTION WAS THAT WE ACCEPT THE BUDGET AS AS PRESENTED, BUT THAT IF THE MONEY IS UNSPENT SPECIFICALLY FOR THE COMMUNITY CENTER THAT THEY BRING BACK A BUDGET AMENDMENT TO

[01:25:06]

RECONSIDER IT. YOU CAN ALWAYS BRING BACK A BUDGET AMENDMENT. WELL AGAIN IF THE OLD GOAL IS TO REDUCE THE TAX RATE. THE SIMPLEST AGAIN SAFE? NO NO, THAT THAT'S I GET, AND I'M TRYING TO AVOID THAT PIECE OF IT WOULD BE SIMPLY TOO. SAY THAT. WHATEVER THE AMOUNT THAT YOU WANT TO REDUCE BY, JUST SAY. WE'RE 2024 PROJECTS REDUCED BY X DOLLARS AS TO BE DETERMINED BY THE SEA IP SUBCOMMITTEE. THEY HAD A FUTURE MEETING. AND THEN NOW INSTEAD OF ADDING. TOTAL ADDITIONAL PROJECTS OF. THE 70,000,005 19 WERE 800,000 MILLION MILLION, FIVE LESS. AND THEN, AS WE ADOPT . UH AND THEN IF YOU COME BACK ON THE NEXT ITEM AND ADOPT A LOWER TAX RATE, AND IT BALANCES STILL HAVE THE FUNDING NECESSARY TO DO THE PROJECTS THAT WE'VE ADOPTED. WE JUST WON'T DO ONE OF THOSE PROJECTS OR A PORTION OF POINT OF THOSE PROJECTS. IN MY PREVIOUS DISCUSSIONS, THAT'S NOT SOMETHING THAT I WAS. THAT I WOULD BE COMFORTABLE WITH. I THINK WHAT I WANT TO SEE DONE IS THAT MONEY SPENT OR OR ALLOCATED TO DEBT, SOMETHING CHRIS IS TRYING TO GET SOME OF IT ALLOCATED THIS. WE'RE NOT TALKING. I DON'T THINK CHRIS MOTION DIDN'T INCLUDE MINISTER SECOND ON IT DIDN'T THE REDUCTION OF. OF THE BUDGET. IT WAS JUST A REALLOCATION OF CAPITAL DEDICATED, SUCH AS SOME PORT THE IN HIS OPINION, THE $2 MILLION ALLOCATED FOR THE COMMUNITY CENTER WOULD INSTEAD BE ALLOCATED TO PREPAID DEBT. CAN'T DO THAT. THAT MOTION DOESN'T WORK. SO. OKAY THANK YOU FOR CLARIFICATION. I'M NOT SAYING YOU CAN'T DO IT CAN'T MAKE THIS SAYING THAT WE CAN DO IT, BUT THEY HAVEN'T HAD THE OPPORTUNITY TO RESEARCH THAT.

AND AGAIN. THE LAWS REGARDING DEBT SERVICE AND EVERYTHING HAVE BEEN TIGHTENED UP CONSIDERABLY IN THE PAST TWO YEARS. AND I JUST WANT TO MAKE SURE THAT WE DON'T PUT OURSELVES IN A BIND.

WE'RE OUT OF COMPLIANCE WITH STATE LAW. DID WE FIND OUT THAT WE GET AN ANSWER ON THE, UH, THE TEARS WHETHER OR NOT THERE'S ANYTHING PRE PAYABLE IN THE TOURS. CHRIS HAD ASKED ABOUT THAT, WHETHER WHETHER WE COULD MODIFY THAT INSTEAD OF IS THERE IS THERE IN THE TERMS. THE DEVELOPER AHEAD. OR BEHIND. ON DEVELOPMENT VERSUS COLLECTIONS. WE. THE DEVELOPER HAS INCURRED, AND CHRIS LANDER MARK FINANCE DIRECTOR CAN PROBABLY SPEAK TO THIS MORE DIRECTLY BECAUSE HE OVERSEES THE TURDS. BUT AS I UNDERSTAND IT, THE DEVELOPER IN TERMS OF THE INITIAL DEVELOPMENT INCURRED FAR MORE EXPENSES FOR INFRASTRUCTURE. THAN THE TOURS HAD AVAILABLE TO PAY. AND SO BECAUSE OF THAT, WE WILL BE REPAYING WITH INTEREST INVESTMENT WITH INTEREST OVER A PERIOD OF YEARS. SO THERE'S NO SURFING THE ISSUE WITH THE TEARS . THERE'S A CAP THAT THAT ONLY SOURCE OF FUNDS TO PAY THAT HAS ALWAYS BEEN FROM THE TURNERS. AND THERE'S A CAP ON THAT TOURS OF $75 MILLION. I BELIEVE SOMETHING SOMEWHERE IN THAT NUMBER. SO WITHOUT SO IF YOU WERE TO SPEND MONEY OUT OF THE GENERAL FUND TO PRE PAY THE TOURS THEN THE QUESTION IS, ARE YOU EVER GONNA REALLY OWE THAT MONEY BECAUSE IT'S THE ONLY SOURCE WOULD HAVE BEEN FROM THE FROM THOSE TEXTS. TAXES BUT EVERYTHING I'VE SEEN. WE'RE GONNA FART SEED. THOSE THOSE NUMBERS SO PRE PAYING IT OUT OF GENERAL FUND WOULD NOT BE SOMETHING. THAT WOULDN'T BE PRACTICAL TO ME AND AGAIN. THIS IS SOMETHING WE HAVE NOT HAD TIME TO RESEARCH UNDERSTAND? I'LL MAKE A MOTION THAT WE APPROVED THE BUDGET AS IT SUBMITTED. WE HAVE A MOTION AND A SECOND. IS THERE ANY FURTHER DISCUSSION? ALL IN FAVOR. MAKE MARRIAGE JUST FOR THE RECORD OF ROLL CALL VOTES REQUIRED. WE'LL START WITH COUNCILWOMAN BARTLEY IN FAVOR. IN FAVOR. IN FAVOR. IN

[01:30:09]

FAVOR. IN FAVOR AND IN FAVOR. ALSO, THANK YOU. NEXT AGENDA ITEM IS AGENDA ITEM NUMBER. 10

[10. Conduct a public hearing to consider and act upon an ordinance adopting a tax rate of $0.51 per $100 valuation for fiscal year 2023-2024. (CL)]

CONDUCTED PUBLIC HEARING TO CONSIDER AND ACT UPON AN ORDINANCE ADOPTING THE TAX RATE OF 51 CENTS PER $100 VALUATION FOR FISCAL YEAR 2023. 24 BOBBY. YOU GONNA TAKE THIS ONE TOO? I ABSOLUTELY DO. UH AS I MENTIONED , WE'RE JUST GOING TO DO THE ONE PRESENTATION AND SO WE ARE READY FOR THE PUBLIC HEARING. GOOD AT THIS TIME I OPENED THE PUBLIC HEARING. THIS IS THE ONLY PUBLIC HEARING TO DISCUSS A FISCAL YEAR 2023 PROPOSED TAX RATE. THE TOWN COUNCIL HAS APPROVED THE PROPOSED 2023 24 BUDGET. FOLLOWING THIS PUBLIC HEARING. WILL VOTE ON PROPOSED TAX RATE PUBLIC HEARING IS NOW OPEN. IS THERE ANYONE LIKE TO SPEAK ON THIS PARTICULAR ITEM? SEEING NONE. I WILL CLOSE THE PUBLIC HEARING. COUNCIL DISCUSSION. LOWER THE TAX RATE BY FIVE CENTS. I THOUGHT YOU WANTED 7.5. I MOVE APPROVAL OF THE TAX RATE 51 CENTS. ONE SECOND WE HAVE A MOTION AND A SECOND IS THIS ONE A ROLL CALL VOTE. ALSO ALL RIGHT , WE'LL START WITH CHARLES COTTON. I'M IN FAVOR. IN FAVOR. IN FAVOR, ALSO IN FAVOR. IN FAVOR AND FAIRER. THANK YOU VERY

[11. Ratifying the property tax increase in the budget for fiscal year (FY) 2023-2024. (CL)]

MUCH. NEXT AGENDA ITEM IS AGENDA ITEM NUMBER 11 RATIFYING THE PROPERTY TAX INCREASE IN THE BUDGET FOR FISCAL YEAR 2023 2024. MAYOR FOR JUST A CHANGE IN PACE. THIS IS NOT A REAL CALL VOTE. IS THERE ANYTHING ELSE? WE NEED TO TALK ABOUT THAT? IS THERE ANY PRESENTATION, I THINK, OKAY. GREAT. YEAH WE HAVE TO DO THIS PARTICULAR ONE. COUNCIL. ANY DISCUSSION? SOMETHING BRIEF COMMENT THAT YOU KNOW, I KNOW THIS HAS BEEN LIVELY DISCUSSION TONIGHT, BUT I WANT TO THANK STAFF FOR THE SIGNIFICANT AMOUNT OF WORK TO GET THROUGH THE FISCAL TO GET THROUGH. CATCHING UP ON STATEMENTS FROM YEAH. FORMALIZING AND. FOR THE FINANCE COMMITTEE, YOU KNOW, HAVING MET FOR TWO MONTHSHS LOOKING AT THE DEBT CAN PASS THE AND HOW WE CAN ACCELERATE AS MANY PROJECTS WE'RE DOING IN A HYPER GROWTH COMMUNITY. SO UM, IT'S NOT LOST ON ME THE AMOUNT OF WORK THAT GOES INTO THAT, SO I JUST WANT TO SAY THANK YOU. I'LL MAKE A MOTION, BUT BEFORE THAT, I'LL COMMENT THAT. I THINK THIS IS WHAT THIS BODY IS SUPPOSED TO DO . AND THE FACT THAT WE'RE STRUGGLING WITH IT A LITTLE BIT , AND HAVING A DISCUSSION MEANS THAT WE ARE NOT TAKING OUR TAXPAYERS FOR GRANTED, NOR THE REVENUE THAT WE GET FROM THEM.

SO I THINK IT'S BEEN A VERY GOOD DISCUSSION, AND I THINK, UM, IT WILL INFORM OUR DECISION FOR THE NEXT YEAR AS WELL. HAVING SAID THAT I MAKE A MOTION TO RATIFY THE PROPERTY TAX INCREASE IN THE BUDGET FOR FISCAL YEAR 2023 2024. EXACTLY. THANKS. WE HAVE BEEN MOTION IN A SECOND ALL IN FAVOR. MOTION PASSES UNANIMOUSLY. THANK YOU VERY MUCH. AT THIS TIME AGENDA. ITEM

[12. Discuss and consider Town Council Subcommittee reports. (DFB)]

NUMBER 12, DISCUSSING CONSIDERED TOWN COUNCIL SUBCOMMITTEE REPORTS THE LEGISLATIVE COMMITTEE MET TODAY WITH OUR. LEGISLATIVE THE A ZON AND WE AGREED TO HAVE MONTHLY CONTINUED MONTHLY MEETINGS. EVEN OUTSIDE OF THE LEGISLATIVE SESSION OF JOKED AT ANY TIME. YEAH, I THINK, UH, THE ONLY REAL THING THAT WAS, I GUESS IN THE ANSWER IS THERE IS NO ANSWER IS THE SUPER PREEMPTION BILL. IT SOUNDS LIKE THAT, AND ROBIN KEEPS ME HONEST ON THIS. IT SOUNDS LIKE THAT BILL. UH IS GOING TO BE AND , UH, SOME KIND OF APPELLATE SITUATION. FOR THE NEXT 3 TO 6 MONTHS WE'LL GET KICKED, POSSIBLY TO THE SUPREME COURT. AND SO WE'RE IT SOUNDS LIKE WE ARE GOING TO PROBABLY HAVE TO KIND OF KEEP AN EYE ON IT AND WATCH OTHER COMMUNITIES AS THEY GO FORWARD AND IF THEY RECEIVE CHALLENGES, BUT OTHERWISE FOR US , WE NEED TO CONTINUE TO MONITOR THAT AND MAKE ANY, UM KIND OF CONTINUE ON THE PATH THAT WE'RE ON FOR CURRENT CODES AND ORDINANCES. THANK YOU. THE C I P COMMITTEE MET. WE'VE OBVIOUSLY HEARD ALL OF THAT DISCUSSION ALREADY. UNLESS C I P COMMITTEE MEMBER WOULD LIKE TO ADD TO THAT. I JUST HAVE ONE QUESTION ON LEGISLATIVE. DID THEY SAY ANYTHING ON YOUR CALL ABOUT ANY ADDITIONAL SUBJECT MATTER BEING

[01:35:04]

CONSIDERED IN THE NEXT SPECIAL, SO I KNOW IT'S SCHOOL FINANCE. BUT IS THERE ANYTHING ELSE THAT COULD AFFECT MUNICIPALITIES? ANYTHING ELSE? THEY'RE BRINGING FORWARD AGAIN THAT WE'RE DIDN'T PASS THAT ARE IN THE NEXT. I THINK WE HAVE TWO SPECIAL SESSIONS COMING CORRECT PROBLEMS. ONE PAST AND I DON'T THINK FROM WHAT I HEARD IT SOUNDS LIKE SCHOOL. SCHOOL UH, TAX ISSUES, NOT LIKE VOUCHERS AND NOTHING FOR ME IN THIS SPOT, ANYTHING IF YOU HEARD SOMETHING I. I THINK THAT WAS ALL THE SUBCOMMITTEE'S CORRECT, OKAY? NEXT AGENDA ITEM IS A POSSIBLY

[Possibly direct Town staff to schedule topic(s) for discussion at a future meeting.]

DIRECT TOWN STAFF TO SCHEDULE TOPICS FOR DISCUSSION AT A FUTURE MEETING. DOES ANY COUNCIL MEMBER HAD? I THINK THEY'D LIKE BROUGHT FORWARD A FUTURE MEETING? UNLIKE MAYBE SOME AWARENESS TO WORK COMING CLOSER TO PLANTING SEASON, YOU KNOW, AND TYPICALLY, THOSE ARE SIGNIFICANT COST WITH ALL THE THAT WAS FROZEN, TORN OUT. UM, JUST SO WE HAVE THE AWARENESS OF WHAT THAT LOOKS LIKE THE TOWN'S AREAS TO REPLANT EXACTLY IN THE MEDIANS AND SO WE'VE GOT QUITE A FEW AREAS IN TOWN IS ONE. NO, I HAVE AN UPDATE ON THAT. SAME ON CODE ENFORCEMENT. I NOTICED THAT IT LAST TIME, BUT JUST MAKING SURE THAT OUR, UH DEVELOPERS THAT HAVE HAD TO REMOVE PLANT THAT PLANT MATERIAL AND TREES ARE MAKING PLANS TO REPLANT NOW THIS TIME OF YEAR. EVERYTHING ELSE. I'D LIKE TO CONSIDER A FEW MINOR CHANGES TO THE SIGN ORDINANCE. ANYONE ELSE? THANK YOU. WE'LL MOVE TO EXECUTIVE SESSION AT THIS TIME, WE'LL RECESS INTO CLOSED SESSION IN

[EXECUTIVE SESSION]

COMPLIANCE WITH 2ND 551.001 OF THE TEXAS GOVERNMENT CODE IS AUTHORIZED BY THE TEXAS HILL FOR MEETINGS ACTIVE, DELIBERATE REGARDING SECTION 551.087 TO DISCUSS AND CONSIDER ECONOMIC DEVELOPMENT CENTERS. ALL MATTERS INCIDENT RELATED THERE TO SECTION 551.072 TO DISCUSS AND CONSIDER PURCHASE EXCHANGE LEAST FOR VALUE OF REAL PROPERTY FOR MUNICIPAL PURPOSES AND ALL MATTERS INCIDENT RELATED THERE TO SECTION 551 TO DISCUSS BEFORE DISCUSSING CONSIDER PERSONAL MATTERS AND ALL MATTERS INCIDENT AND RELATED THERE TO SECTION 551.074 TO DISCUSS APPOINTMENTS OF THE BOARD OF ADJUSTMENT CONSTRUCTION BOARD OF APPEALS PARKS AND REC BOARD LIBRARY BOARD, PROSPER ECONOMIC DEVELOPMENT CORPORATION BOARD PLANNING AND ZONING COMMISSION.