Aug 23, 2022 City Council

[WORKSHOP AGENDA 4:00 P.M.]

[00:00:09]

.

>> SPEAKER: GOOD AFTERNOON. IT IS 4:00 P.M. TUESDAY, AUGUST 23. I CALL THE SESSION OF THE MIDLOTHIAN WORKSHOP TO ORDER. IF - - WILL LEAD US, LET US

PRAY. >> FATHER IT CAN BE FOR YOU THIS EVENING AND WE THANK YOU FOR THE ABILITY TO GATHER UNDER YOUR NAME, AND THE OPPORTUNITY TO HELP LEAD AND GOVERN THIS COMMUNITY. FATHER, THANK YOU FOR THE MUCH-NEEDED RAIN FUELING OUR PLANS AND OUR SOIL.

GOD, I PRAY THAT YOUR HAND WILL BE HONEST, YOU GUIDE US AND LEAD US AS YOU ATTEMPT TO DO WHAT YOUR WILL IS HERE FOR OUR COMMUNITY. IN CHRIST NAME I PRAY, AMEN.

I PLEDGE ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA. AND TO THE REPUBLIC, FOR WHICH IT STANDS, ONE NATION UNDER GO , INDIVISIBLE WITH LIBERTY AND JUSTICE FOR ALL. IN HONOR OF TEXAS FLAG.

I PLEDGE ALLEGIANCE TO THE TAXES, OUR STATE UNDER GOD, ONE

AND INDIVISIBLE. >> WE HAVE ONE WORKSHOP AGENDA ITEM 2022 355, REVIEW AND DISCUSS THE DRAFT FISCAL YEAR 2022 2023 CITY OF MIDLOTHIAN GENERAL FUND, UTILITY FUND, SPECIAL REVENUE FUNDS AND COMPONENT UNIT PROPOSED ANNUAL OPERATING BUDGET AND RELATED FINANCIAL MATTERS AND DIRECT STAFF AS NECESSARY PRESENT. [INAUDIBLE].

>> AS NOTE ON THE WIDESCREEN, WE ARE BEING STREAMED AND RECORDED. QUICKLY, WHERE WE HAVE MADE THE PROPOSED CHANGES, AND THIS IS IN YOUR COUNSEL PACKET, WE MADE ALL THE PROPOSED CHANGES TALKED ABOUT THE LAST WORKSHOP.

THOSE ARE IN HERE, OUR GENERAL FUND DEFICIT RIGHT NOW THAT WOULD BE MADE UP WITH UNRESERVED FUND BALANCES IS 2,569,000. OBVIOUSLY THOUGH, WE NEED TO TALK ABOUT THE TAX RATE. OBVIOUSLY WE HAVE THE ERROR THAT STAFF MADE ON PROPOSING THAT NO NEW REVENUE RATE.

THE CALCULATION WAS CORRECT, BUT WE PULLED THE WRONG NUMBER THAT WE PUT IN THE PACKET THAT YOU ALL GOT ON AUGUST 9. THAT WAS CORRECTED AND PUT INTO THE PUBLIC NOTICE CORRECTLY, BUT NONETHELESS, THAT WAS A BIG DIFFERENCE IN THE REVENUE RIGHTS PRESENTED ON AUGUST 9, AND WITH THE ACTUAL NO NEW REVENUE RATE IS. WITH THAT, THE COUNCIL HAD SAID 66.3147 I BELIEVE IS THE NUMBER AS THE CEILING THE KIND OF START THIS PROCESS. THE COUNCIL CAN ADOPT ANY RATE THAT IS BELOW THAT NUMBER, WE CANNOT RAISE IT ABOVE THAT NUMBER WITHOUT STARTING THE PROCESS OVER.

OBVIOUSLY, WE WOULD NEED TO HAVE A DISCUSSION ABOUT WHERE WE WOULD LIKE THE TAX RATE TO BE AND GET SOME CLARIFICATION BEFORE WE SETTLE ON THE FINAL SERVICE SCHEDULE FOR THE BONDS THAT WE ARE PROPOSING TO ISSUE FOR CITY HALL, THE PUBLIC SAFETY BUILDING AND WALNUT GROVE ROAD.

ANY OTHER ADJUSTMENTS WE NEED TO MAKE TO THE PROPOSED BUDGET BASED ON THIS DIFFERENCE IN THE TAX RATE.

WITH THAT, I WILL SEND FOR ANY QUESTIONS YOU MAY HAVE.

>> SPEAKER: IF YOU WISH TO SPEAK, PLEASE INDICATE.

[00:05:03]

>> SPEAKER: I WOULD LIKE TO MAKE THE COMMENT.

I THINK WE HAVE HIT THE SOURCE PRETTY HARD.

THE NUMBER YOU CAME UP WITH, IT'S A GOOD NUMBER TO START WITH AND THE NUMBER WE SAID. [INAUDIBLE].

>> I HAVE A COMMENT. IT WAS PRESENTED TO US THAT 66.314 WITH THE NO NEW REVENUE RATE .

IT IS MY INTERPRETATION THAT IT WAS THE INTENT OF THE COUNCIL THAT UNDERSTANDING THAT BE THE NO NEW REVENUE RATE, WE SET THE CEILING AT THAT RATE, IT WAS THE INTENTION OF HIS COUNSEL TO ONE WAY OR THE OTHER BRING OUR TAX RATE WHAT COULD BE CONSIDERED AN OPEN REVENUE RATE AND I DO NOT THINK THAT SHOULD

CHANGE. >> I CONCUR.

>> RICHARD RENO: YOU CONCUR WITH WHAT?

>> SPEAKER: WALTERS STATEMENT. >> RICHARD RENO: I HAVE A DIFFERENT INTERPRETATION OF THE OTHER DAY.

WALTER, I INTERPRETED WHAT YOU JUST SAID, YOU COULD FORWARD THAT THE INTENT OF COUNSEL WAS TO ADAPT THE NO NEW REVENUE RATE. THEY ARE TO KNOW NEW REVENUE RATES. WHICH ONE ARE YOU REFERRING TO?

>> WALTER DARRACH: I AM REFERRING TO 66.3 BEING THE TOTAL CALCULATION OF THE NEW TAX RATE AS A WHOLE I SUGGESTED THAT ARE NO NEW REVENUE RENOVATION BE MADE AND IT WAS WIDELY ACCEPTED THAT IF WE WERE GOING TO GO FOR A NEW REVENUE RATES, IT SHOULD BE TAKEN OFF OF THE DEBT SIDE TO ALLOW FOR THE MNO TO STAND AS PRESENTED. I WILL REITERATE, IT IS MY OPINION SPECIFICALLY, MY OPINION, IT WAS TOLD TO US THAT 66.314 WAS A TOTALIZATION OF THE NO NEW REVENUE RATE AND THUS, WHEN WE SET THE CEILING AT THAT 66.314, WE AS A COUNSEL INDICATING THAT WAS THE DIRECTION WE WERE GOING, SEEING AS WE CANNOT GO ANY HIGHER AND THAT NUMBER WAS PRESENTED AS A

NO NEW REVENUE RATE. >> THAT CREATED A 1.2 CENT

DECREASE. >> RICHARD RENO: IS THE CORRECT NUMBER FOR THE NO NEW REVENUE FOR THE TAX RATE?

>> WALTER DARRACH: 59.5914 CENTS.

>> RICHARD RENO: MY UNDERSTANDING OFTHE OTHER DAY WAS , THAT THE 1.2 WAS THE DIFFERENCE, THE DELTA BETWEEN THE MNO SIDE, THE VOTER APPROVED RATE AND THE NO NEW REVENUE RATE. WHAT WE APPROVED, THE INTENT WAS FOR THAT DELTA, NOT TO GO ALL THE WAY DOWN TO THE RATE WHICH WOULD BE.599.THAT WAS MY UNDERSTANDING OF WHAT THE COUNCIL HAD SAID LAST TIME. IF WE GO TO 599, THE CITY WILL NOT BE ABLE TO FUNCTION AND DELIVER SERVICES.

IT PROBABLY WILL NOT BE ABLE TO DO THE CITY HALL, THE SAFETY CENTER AND WALNUT GROVE. WE MAY DO ONE OF THOSE BUT

CERTAINLY CANNOT DO ALL THREE. >> SPEAKER: YOU WILL NOT BE ABLE TO SELL BONDS. I AM BACK AGAIN, WHAT WE CAME UP WITH LAST MEETING, I AM GOOD WITH THAT.

>> RICHARD RENO: BEFORE I ASK THE PERSON IN QUESTION, IS THERE ANY OTHER DISCUSSION OR COMMENTS AT THIS POINT FOR

COUNSEL? >> SPEAKER: I WANT TO UNPRINCIPLED REFUTE BOTH COMMENTS MAYOR, RESPECTFULLY,

[00:10:01]

>> RICHARD RENO: THE COST OF THE BONDS IN THE MONEY, I CERTAINLY DO NOT RECALL. WE HAD GONE THROUGH THE BUDGET, NOT ONLY DO WE NOT REDUCE IT, WE ADDED THE POSITION TO A TOTAL OF $30,000. WE CANNOT DELIVER THE SERVICE REQUIRED BECAUSE THE BUDGET PRESENTED BY STAFF IS THE BUDGET NEEDED TO DELIVER THE SERVICES.

THAT IS WHAT MY COMMENT IS BASED ON.

IF YOU GO DOWN TO 599, WE HAD TO CUT OUT SEVEN CENTS WHICH IS 3 MILLION OR $4 MILLION OUT OF THE BUDGET.

>> WALTER DARRACH: MIGHT I SUGGEST ⌟

>> RICHARD RENO: COUNCILMAN, WOULD YOU PLEASE YIELD FOR A MOMENT?I WOULD LIKE OTHER COUNCILMAN TO SPEAK.

>> WALTER DARRACH: SO YOU DON'T WANT ME TO SPEAK, BUT YOU WANT

OTHERS TO SPEAK? >> RICHARD RENO: ,NO, I AM NOT SILENCING YOU, I AM ALLOWING OTHER COUNCILMEMBERS TO SPEAK AND NOT LETTING ONE CONGRESSMAN DOMINATE THE CONVERSATION.

>> RICHARD RENO: I BELIEVE THE INSTRUCTIONS ARE AT THE LIGHT WAS ON, IT IS YOUR INTENT TO SPEAK.

>> RICHARD RENO: IF YOU WOULD BE PATIENT, I WILL ALLOW YOU TO SPEAK. COUNCILMAN HAMMONDS?

>> ANNA HAMMONDS: CAN WE GET CLARIFICATION TO DROP DOWN, IS

THAT ABOUT 4 MILLION? >> SPEAKER: 550,000 PER ONE SENT THAT WOULD NEED TO BE CUT, THAT IS CORRECT.

>> WE GOT THE NO NEW REVENUE RATE WAS .663, TO ME A 1.2 SENT DEDUCTION, RATE DEDUCTION WAS A DIFFICULT TASK TO FIND, BUT DOABLE AND THAT IS WHY WE PUSHED HARD TO FIND THAT IN THE BUDGET THAT DAY. WE ENDED UP DOING ON THE DEBT SIDEFROM WHAT I UNDERSTAND . TO TAKE THE APPROACH TO GO ALL THE WAY DOWN TO .595, CERTAINLY YOU HAVE TO DO IT ON THE DASH SIDE AS WELL AS ADDITIONAL AMOUNTS, THAT WOULD BE A TALL TASK TO ACCOMPLISH. I-4 ONE AND NOT REAL INTERESTED IN GOING BACKWARDS AND REVISITING THE ENTIRETY OF THE BUDGET AS WE HAVE A ONCE OVER OR SEVERAL TIMES OVER.

ALL THAT BEING SAID, WHENEVER WE AS A COUNSEL MAKE THE DECISION TO PUSH FORWARD WITH THE ADDED POSITIONS, ADDING 600,000 OR SO ON TOP OF IF YOU WOULD HAPPILY TAKE THAT OUT OF THE BUDGET, THAT WOULD BE A PENNY REDUCTION REDUCTION WE

COULD ACHIEVE. >> RICHARD RENO: COUNCILMAN

HAMMONDS? >> ANNA HAMMONDS: DO WE HAVE THE APPROXIMATE NUMBER OF WHAT THAT WOULD BE IF WE TOOK THE

600,000 OUT FROM THE STAFF? >> BASED ON THE 550,000, IT

WOULD BE JUST OVER A PENNY. >> IF YOU PULL UP THE STAFF, THERE WAS APPROXIMATELY 600,00 , YOU GET THE OTHER ONE

ADDITIONAL OFF OF THERE. >> RICHARD RENO: WALTER, I WILL LIKE COUNSEL TO SPEAK TO OUR INTENT.

I HAVE EXPRESSED MY UNDERSTANDING SPEAK FOR COUNSEL, AT THE REDUCTION THAT WE DID WAS THE DELTA BETWEEN THE VOTER APPROVED RATE AND THE NO NEW REVENUE RATE TO GO DOWN THAT 1.2, NOT ALL THE WAY DOWN TO THE MAX NO NEW REVENUE RATE

[00:15:04]

>> WAYNE SIBLEY: I VOTED AGAINST THE 66.314.

NOT BECAUSE I WANT IT TO GO DOWN, I WANTED TO KEEP ITWHERE IT WAS . THIS 6614 WAS DOWN 1.2.

I JUST WANT TO MAKE YOU AWARE, WE WERE TRYING TO PULL IT DOWN SOME MORE AND KEEP IT WHERE IT WAS WITH WHAT WAS SET UP.

THE QUESTION YOU ASKED TO START WITH WAS, WHAT TAX RATE DO WE NEED TO HAVE? WE DID A LOT OF SOUL-SEARCHING TO COME UP WITH THIS NUMBER RIGHT HERE.

AT THAT TIME - - I WOULD VOTE FOR IT NOW.

>> IF WE ARE SHORT $4 MILLION, IT WOULD BE IMPROPER FOR US TO BE OVER ON CITY HALL BY 7 MILLION.

5959. >> ANNA HAMMONDS: I FEEL LIKE WE DID SIGNIFICANT WORK TO GET TO THE.663.

I THOUGHT IT WAS AN EXTRA BONUS THAT WE COULD GET TO THE NO NEW REVENUE RATE I AM NOT SAYING THE ARGUMENT FOR THE .59, I WOULD LOVE TO HEAR FROM WALTER AND HUD BOTH ON HOW YOU PROPOSE GETTING US THERE, BUT RIGHT NOW ¦

>> RICHARD RENO: THANK YOU, BUT THE QUESTION FOR COUNSEL WAS WE TALK ABOUT THE NO NEW REVENUE. [INAUDIBLE] NOT SURE HOW TO WORD THE QUESTION, BUT IN YOUR MIND DO YOU VOTE FOR THE .663 OR THE .599? AT THIS POINT, WHAT IS THE INTENT. [INAUDIBLE]? DO I NEED TO CLARIFY MY QUESTION?

>> ANNA HAMMONDS: I THOUGHT I WAS ANSWERING THAT.

I FEEL LIKE THE INTENT WAS ORIGINALLY TO LOWER THE TAX RATE. WE STARTED IT WITH THE NO NEW REVENUE RATE THINKING IT WAS .663, BUT WITH IT BEING LOWER NOW, I THINK IT IS A DIFFERENT STORY.

I DON'T THINK WE CAME IN AND SAID THAT STILL NO NEW REVENUE REGARDLESS, THAT WAS MY UNDERSTANDING OF THIS.

THAT WHAT YOU ARE ASKING? >> RICHARD RENO: I GUESS I AM ASKING IF THE OTHER DAY, AND WITH THE CORRECTION THAT HAS BEEN MADE SINCE THEN, IS YOUR VOICE FOR .663 OR .599?

>> ANNA HAMMONDS: I AM LEANING TOWARDS .663 WITH POSSIBILITY OF WHAT JUSTIN JUST TALKED ABOUT.

>> THIS IS SOMETHING I DEFINITELY THOUGHT A LOT ABOUT.

I THOUGHT THIS WAS ONE SCENARIO WITH THE NO NEW REVENUE RATE.

I GUESS I HAVE THREE POINTS. THE FIRST ONE WAS I RECEIVED MORE PHONE CALLS ABOUT NEED A BETTER INFRASTRUCTURE YESTERDAY THAT I HAVE BEEN A LONG TIME. THE SECOND POINT WOULD BE, MY BIGGEST ISSUE WITH THE 59 IS WE JUST WENT OUT FOR BONDS.THOSE BONDS WERE APPROVED BY THE MAJORITY AND WE TOLD HIM THAT WE WOULD HOLD 675 AND I THOUGHT IT WAS A WIN TODAY HEY CITIZENS, WE ARE NOT ONLY COULD YOU ISSUETHOSE BONDS, WE WILL DO A TAX DECREASE OF 1.2 . IF WE DO THE .59, WE WILL END OURSELVES ON THIS BOND AND I DO NOT THINK THAT IS FAIR TO THE CITIZENS. WE WENT TO THEM, WE ASKED THEIR OPINION, THEY TOLD US THAT THESE ARE THE PROJECTS WE WANT.

I THINK WE WILL BE LIARS IF WE DO NOT DO THESE PROJECTS IN THE TIMEFRAME THAT WE TOLD THEM WE WERE GOING TO DO THEM.

[00:20:02]

DO IT . >> RICHARD RENO: THANK YOU.

JUSTIN? >> JUSTIN COFFMAN: I AGREE WITH THOSE SENTIMENTS PRETTY CLOSE TO EXACTLY.

THE ONLY CAVEAT BEING IF THE COUNCIL WILL CONSIDER THE REMOVAL OF THE ADDED 600,000 TO THE BUDGET.

WHILE MAINTAINING THE SAME AMOUNT OF DEFICIT AND POTENTIALLY LOWERING THE RATE A PENNY.

>> RICHARD RENO: ARE YOU TALKING ABOUT - -?

>> CAN ASK FOR CLARIFICATION QUESTION?

WE ALREADY DROPPED 1.2. >> JUSTIN COFFMAN: CORRECT HIM

AN ADDITIONAL PENNY. >> WALTER DARRACH: HOW DOES THAT SUPPORT THE NEEDS OF STAFF TO HELP LIMIT AND EQUALIZE THE

WORKLOAD. >> WE HAD SOME THINGS ADDED HE FELT WE COULD GET BY WITH FOR A YEAR UNTIL THE NEXT BUDGET.

I THINK THE COUNCIL, AND WE ARE THE ONES THAT FEEL THEIR

COMPLAINT BOX. >> RICHARD RENO: WE HAVE ONE

MORE COUNCILMAN TO HEAR FROM. >> HUD HARSTON: ONE COMMENT I WANT TO MAKE THE QUICK, THERE HAS BEEN SOME GENERALIZATION SAYING WE ANYTHING THAT NEEDS TO BE ON THE INDIVIDUAL LEVEL.

WHEN IS RECOMMENDED WE DO THE .663, I FULLY UNDERSTOOD THAT WAS THE LIMIT. WE WERE VOTING ON THE LIMIT.

I STILL SAY WE NEED TO PURSUE A 90 REVENUE TAX RATE.

EVEN WITH THAT TERM THAT IS BEING THROWN AROUND TONIGHT IN A WRONG MANNER. WHATEVER RATE YOU ARE REFERRING

TO - -. >> RICHARD RENO: WE ARE TALKING ABOUT POTENTIALLY TWO DIFFERENT RATES, BUT WE ARE TALKING ABOUT THE TOTAL TAX RATE WHICH WAS .675 WHICH LOWERED THE MAX.

YOU ARE RIGHT, EVERYONE HAS EXPRESSED THEIR PERSONAL UNDERSTANDINGS. WE HAVE THREE, IF I UNDERSTAND CORRECTLY, THREE THAT WILL BEGIN FROM THE.663.THAT WOULD BE WAYNE - - MYSELF. WE HAVE JUSTIN ROLLING DOWN ANOTHER PENNY FROM 663, SORRY CLARK IS ALSO FROM 663 HUNDRED AND WALTER IF I UNDERSTAND CORRECTLY ARE LOOKING AT THE.599.IT IS MY UNDERSTANDING CORRECT? I GUESS WAYNE AND MYSELF ARE THE ONLY TWO HOLDING ON THE .663, I CAN. [INAUDIBLE] WALTER AND HUD WANT

TO GO DOWN TO THE 599. >> CLARK WICKLIFFE: IF THOSE ARE THE TWO SCENARIOS, I'M SPLIT DOWN THE MIDDLE.

I AGREE WITH WALTER, I AM SPLIT ON THAT ONE.

I'M NOT IN EITHER CAMP. >> RICHARD RENO: THE QUESTION RIGHT NOW IS THE TAX RATE. IN FACT, I'M NOT TOO SURE AT

THIS POINT IF WE CAN PROCEED. >> WALTER DARRACH: I WOULD LOVE TO HEAR THE ARGUMENT OR HEALTHY DEBATE REGARDING THE DIFFERENT PROPOSALS. MAYBE WE CAN GET CONSENSUS TO GIVE STAFF DIRECTION THIS EVENING IF YOU'RE ABLE TO TALK TO OUR THOUGHTS. FOR INSTANCE, I TYPICALLY IN MY

[00:25:03]

I FIND IN MOST THINGS, USUALLY THE TRUTH IS FOUND SOMEWHERE IN THE MIDDLE OF THE SUMMER IN THE BALANCE.

I WILL LOOK. THE ARGUMENT FOR HOW WE WOULD GET TO THE 90 REVENUE RATE WITH THE BUDGET AND ALL THAT GOOD STUFF. WE OFFER THE ARGUMENT FROM 663.

>> RICHARD RENO: WAYNE? >> WAYNE SIBLEY: I KEEP HEARING THE TERM 90 REVENUE. THE QUESTION WE STARTED OFF WITH LAST TIME IS WHAT SHOULD OUR TAX RATE BE? IT WENT FROM THIS TO THAT TO THEOTHER .

AFTER ALL THE DISCUSSIONS, WE CAME UP WITH THE 663.

I'M GOING TO WHAT CLARK SAID, WE TOLD THE CITIZENS THAT WE CAN DO ALL THESE THINGS WITH THE TAX RATE WE HAD, WE WON'T INCREASE THE TAX RATE. WE CAN DO ALL THIS.

I DON'T KNOW WHO ELSE, I KNOW I HAVE HEARD A LOT LIKE CLARK HA . YOU'RE DOING CITY HALL, WHEN ARE YOU GOING TO DO THE REC BUILDING? WHEN ARE YOU DOING THE OTHER THINGS? IF WE CUT THIS ANYMORE, THOSE THINGS GET PUSHED FURTHER AND FURTHER BACK. MOST CITIZENS FELT LIKE WHEN THEY PASSED THE BOND RATE, [INAUDIBLE].

WE KNOW THAT IS NOT RIGHT. WE HAVE TO TELL THEM WHY.

THE WAY WE SELL BONDS, WE USUALLY DO IT SO WE CAN PAY THE BIGGEST AMOUNT OFF THE FIRST COUPLE OF YEARS.

IT TAPERS OFF AFTER THAT. WE KNOW WE HAVE GOT NOW, IT COULD BE LESS.WE GOING TO HAVE TO START PAYING LESS AND IT WILL END UP COSTING US MILLIONS OF DOLLARS IN THE TERM OF THOSE NOTES. I THINK WE HAVE TALKED ENOUGH ABOUT THE TAX RATES. WE TOLD PEOPLE THAT WE COULD DO ALL OF THIS WITH THE TAX RATE THAT WE HAD AND WE HAVE ALREADY CUT IT 1.2 CENTS. WE HAVE ALREADY MADE A CUT.

WE FEEL LIKE WE CAN STILL DO WHAT WE WERE PLANNING TO DO.

BUT, IF WE CUT IT ANYMORE, I THINK IT WOULD BE A MISTAKE.

>> RICHARD RENO: THANK YOU WAYNE.

ANNA? >> ANNA HAMMONDS: I WOULD LIKE TO TALK HARD NUMBERS. I WILL WOULD LIKE SOMEONE TO EXPLAIN TO ME HOW WE CAN STICK TO THE .599 WITH THE EXPENSES COMING, WHAT IS THE PROPOSAL TO GET THERE?

>> WALTER DARRACH: I THINK THAT WOULD BE AN ANSWER FOR CHRIS.

>> RICHARD RENO: WALTER, IF YOU WOULD ALLOW ME TO DIRECT THE FLOW OF THE CONVERSATION, I WOULD APPRECIATE IT .

CHRIS? >> SPEAKER: FOR THE NO NEW REVENUE RATE, YOU CAN START WITH TAKING THE MNO PIECE DOWN WITH THE NO NEW REVENUE RATE WHICH IS 34.

OBVIOUSLY, WE HAD A LOT OF DISCUSSIONS ABOUT THAT AT THE LAST MEETING. I THINK WE PRETTY MUCH KNOW WHAT THE EFFECTS OF THAT WITH THOSE SIX OR 60,000.

THAT IT TAKES A TOTAL TAX UP TO 3.2 MILLION.

OR YOU TAKE AWAY THE FIVE POSITIONS AND IT LEAVES IT AT THE 2.6 TO 8 IS THAT, THE DEFICIT THAT IS AT TODAY.

>> ANNA HAMMONDS: I'M NOT AS SMART AS YOU CHRIS.

CAN YOU TELL ME THE TWO SIDES OF THE COIN?

WHAT ARE THEY? >> THE 90 REVENUE REVENUE, JUST THE MNO PIECE IS 34.059 ROUND CENTS.

THE VOTER APPROVAL MNO RATE WAS.352512.

THAT WAS THE 1.2 CENTS WE DISCUSSED AT THE LAST WORKSHOP..

[00:30:06]

IF WE LOWERED THE MNO FROM 352 34.

IT IS THAT ONE PIECE. THERE'S NOTHING THAT SAYS YOU CANNOT LOWER THE MNO BELOW THAT, BUT FOR THE SAKE OF THE NEW ARGUMENT, WE WILL TAKE YOU TO KNOW NEW REVENUE WITH MNO OF 34. THE REST OF IT HAS TO COME TO THE SERVICE SIDE. THAT IS WHERE YOU HAVE TO START CHANGING YOUR PROPOSED SERVICE MODEL.

AS MR. SIBLEY SAID, YOU WILL TAKE THE MODEL FROM EARLIER AND TAKE THAT DIFFERENCE OF $3.5 MILLION OFF OF THOSE FIRST-TIER PAYMENTS. LIKELY WHAT YOU'LL END UP WITH, AND HE WANTED TO ISSUE THE FULL 71 MILLION FOR THE FULL PROJECT, IT WILL PROBABLY HAVE A LOWER PAYMENT AND THAT WILL GO UP OVER TIME. AT SOME POINT, IS GOING TO LEVEL OUT. YOU WILL HAVE TO RAMP UP TO GET TO THE DEBT SERVICE NUMBER FOO .

THAT'S GOING TO COST YOU MORE IN THE BACK AND BECAUSE YOU'RE NOT PAYING AS MUCH INTEREST. IF YOU ASK ME HOW WOULD BE ACCOMPLISHED AT $0.59, THAT IS WHAT YOU HAVE TO DO .

YOU WOULD HAVE TO LOWER THOSE FIRST-TIER DEBT PAYMENTS UNTIL HE GOT TO THE AMOUNT OF MONEY YOU HAVE AVAILABLE THE TAX RAT

. >> ANNA HAMMONDS: AND THE TIMING ON THE PROJECTS? WHAT WILL HAPPEN WITH THAT?

>> YOU HAVE TO PUSH - - 2024, PROBABLY 25 OR 26, THERE ARE A LOT OF FACTORS IN THAT.I AM NOT TRYING TO MAKE ABSOLUTES HERE, A LOT IF THAT IS GOING TO DEPEND ON EVALUATION GROWTH, NEW VALUE, ETC. THERE ARE A LOT OF VARIABLES TO THAT.

>> ANNA HAMMONDS: THAT WOULD BE WHAT PROJECTS?

>> THE REC CENTER AND THE REMAINING PROJECTS, MOCKINGBIRD, THE BRIDGE DOWN ON 40TH STREET, THAT MAKES THE BALANCE OF THE WITH THE REC CENTER.

THAT IS HOW YOU WOULD HAVE TO STRUCTURE IT TO GET TO THE $0.59. AGAIN, YOU COULD TAKE MORE OUT OF IT,. IF YOU DO NOT WANT TO GO THAT FAR DOWN THE DEBT SIDE, YOU CAN PICK AND CHOOSE.

ON EITHER SIDE, MNO OR DEBT. >> ANNA HAMMONDS: MAYOR, CAN I RECAP WHAT I AM HEARING? LET ME MAKE SURE I HAVE THIS CORRECT PLEASE. IF WE CHECK OUT THE NEW POSITIONS ON THE MNO SIDE, THAT WOULD BRING US OUT OF THE

NUMBERWE NEED THEIR ? >> CORRECT, IF YOU WANT TO DO

THE SAME DEFICIT. >> THE REST WOULD COME OUT ON THE DEBT SIDE ALLOWING US TO PUSH THE PROJECT OUT AT THE VOTERS APPROVED PERFORMANCE AND IT WOULD COST US MORE MONEY IN

THE LONG RUN. >> SPEAKER: I AM BEING VERY CLEAR, POTENTIALLY. YOU MIGHT BE ABLE TO PUSH THEM BACK UP, ONCE WE SET THE DEBT SERVICE SCHEDULE, THAT IS GOING TO BE LOCKED IN. YOU WILL PAY MORE IN INTEREST BECAUSE YOU'VE LOWER THE PRINCIPAL PAYMENTS .

ONCE WE LOCK INTO THIS 71 MILLION, YOU WILL BE LOCKEDIN FOR 10 YEARS AND WE CAN REFINANCE .

FOR ALL INTENTS AND PURPOSES YOU WILL SPEND MORE ON INTEREST DOING IT THAT WAY WITH HIGHER PRINCIPLE .

AGAIN, PUSHING IT OUT, AS FAR AS HOW FAR IF AT ALL, IS DEPENDENT ON THIS EVALUATION DOES FOR THE NEXT 2 TO 3 YEARS.

HOPE THAT HELPS. >> WALTER DARRACH: A COUPLE OF

[00:35:02]

CURRENTLY EMPLOYED ON STAFF? >> A LITTLE OVER 300.

>> WALTER DARRACH: DOES THAT INCLUDE SWORN OFFICERS AND

FIREFIGHTERS? >> EVERYBODY, FULL-TIME EQUIVALENTS. HOW DOES THAT COMPARE TO THE

NEXT COMPARABLE CITY? >> AN AREA BEHIND? NOT CLEAR EXACTLYHOW MANY BUT I KNOW WE ARE BEHIND .

>> CAN YOU GIVE ME AN ESTIMATE? >> ROUGHLY 100 PEOPLE BEHIND.

>> WALTER DARRACH: 100 PEOPLE BEHIND TOO I NEED SOME HELP IN UNDERSTANDING YOUR PROPOSAL I CAN FORWARD, I SEE YOUR STAFF PROPOSAL HAS MADE IT TO THE BUDGET HAVING CERTAIN PHYSICIAN ADDITIONS AND WE CAME UP WITH SIX ADDITIONAL.

I'VE HEARD FROM THE DATA HERE THAT MAYBE WE WERE WRONG IN SUGGESTING SIX ADDITIONAL POSITIONS TO HELP ALLEVIATE STAFF STRESS? WHICH ONE IS IT.ARE WE INCORRECT AND SHOULD WE DEFER TO YOUR EXPERTISE? OR IS THERE SOMETHING THAT I DON'T UNDERSTAND GOING ON IN OUR CITY THAT WOULD ALLOW US TO BE IN THE BALLPARK OF 100 POSITIONS BEHIND? STEALING A LOT OF IT IS FINANCIAL. I BELIEVE TRYING TO STRIKE A BALANCE WHERE WE DON'T ATTACK ON LIMITED FUNDING.

PER MY RECOMMENDATION, A LOT OF THIS HAS TO DO WITHFINANCIAL SO WE PRIORITIZE THOSE . WE ARE RECOMMENDING A DEFICIT,

IS THE COMFORT. >> SO WE DON'T HAVE THE MONEY TO FILL, LET'S JUSTSAY , 75 POSITIONS?TRIMMING IS CLOSER TO A COMPARABLE CITY AND STAFF LEVEL?

>> SPEAKER: NOT WITHOUT A MAJOR USE OF DEFICIT, WEED ON THE TAX

RATE TO FIND IT. >> WALTER DARRACH: THIS PICTURE IS PAINTING SOMEWHERE IN THE VICINITY OF OVERSPENDING SOMEWHERE. WE ARE UNDERSTAFFED AND THE REGION OF THE MONEY TO PROPERLY STAFF, BUT WE ARE SPENDING IN OTHER AREAS MORE AND MORE. OUR PROPERTY VALUES ARE GOING UP EXCEPTIONALLY YEAR OVER YEA , YET WE HAVE A $2 MILLION DEFICIT GOING TO THE BUDGET PROCESS.

IN AN EFFORT TO AGAIN, AID STAFF, YOU WANT TO ADD SIX POSITIONS AND WE ARE NOW POTENTIALLY THE BAD GUYS FOR ADDING TO THE DEFICIT AND WORKING OFF A CALCULATION FOR THE ENTIRE PROCESS THAT WAS NOT PRESENTED RIGHT HERE MAYBE WAS THERE ALL ALONG BUT WAS NOT PRESENTED RIGHT .

THE ONLY POSITION WE AS COUNSEL HAPPY TO FURTHER PUT THE BURDEN BACK ON STAFF SAY PERCENT OFFICE 66 THREE, AM I MISSING

THIS? >> SPEAKER: I CAN ADDRESS ONE OF THE QUESTIONS, WE TALKED WITH DEFICIT OF GETTING BEHIND AS FAR AS TO BE ABLE TO OTHER CITIES LET'S SAY, WE'RE TALKING A LOT ABOUT IT, THERE'S NO UNIT REVENUERATE , IT'S A. WE CANNOT, EVEN IF WE SENT TO YOUR POINT, I WANT TO ADD 75 NEW POSITIONS TO THOSE, HOW WOULD WE AFFORD THAT? WE HAVE A 3.5% SO WE ARE NOT GOING ABOVE THAT.

NOT WITHOUT A VOTE.IF YOU'RE LOOKING FOR 75 NEW POSITIONS YOU NEED TO HAVE ABOUT AN ELECTION.

>> IT WOULD BE IMPROPER THINK WE COULD EVER ADD 75 TO 1 BUDGET YEAR BUT THE WAY WE WOULD DO THAT TO ADD A COUPLE OF THE POSITIONS ANNUALLY AND MAYBE EVEN AN ACCELERATED SCHEDULE TO CATCH US UP SO TO SPEAK.

SORT OF LIKE WE DO WITH THE FIRE TRUCK THAT WE DO NOT NEED 3 TO 5 YEARS JUST TO CORRECT THE SCHEDULE IN THE FUTURE,

RIGHT? >> SPEAKER: I DO NOT THINK WILL BE FOLLOWING THE FIRE TRUCKS, THE US AND WE CAN ACCELERATE THE SCHEDULE AND EVEN WITH THE BUDGET WE PROPOSED HAD QUITE A FEW STAFF, PROBABLY MORE SO THAN WE HAD IN THE PAST WE WERE TRYING TO PLAY CATCH UP A LITTLE BIT BUT AGAIN, BALANCING THE ENTIRE THING WITH BOND ISSUANCE SINCE, RATE AND HOW FAR WE CAN GO. ONE OF THINGS WE TALKED ABOUT

[00:40:01]

TO YOUR POINT, WE WANT TO ADD MORE POSITIONS, WE NEED TO EXCEED IN A CERTAIN YEAR, PICK A YEAR TO 3.5%.

THE SCOPE OF THE VOTERS AND ASK WILLIAM OF POLICE AND FIRE DEPARTMENT. WHATEVER THE POSITIONS ARE, NEED TO RAISE THAT ABOUT THE SILLY GO TO BORDERS AND ASKED HIM TO DO THAT. I THINK WHAT OUR LONG-TERM PLAN WAS, HOPEFULLY WE CAN DO THAT WITHOUT RAISING THE OVERALL TAX RATE. I DON'T THINK ANYONE WOULD WANT TO GO TO THE RESIDENT AND SAY HEY, WE NEED TO OF ALL THESE POSITIONS, WE ARE GOING TO HAVE TO RAISE THE TOTAL TAX RATE IN ORDER TO DO THAT. HE WOULD PREFER TO FIND A WAY TO FLIP THAT. HE WILL LOWER THE DEBT RATE LITTLE BIT SO WE CAN USE SOME OF THAT TO GET INTO OPERATION TOINCREASE POSITIONS . THOSE ARE LONGER-TERM STRATEGIES THAT WE HAVE TO PLAY WITH IN THESE NUMBERS.

THAT IS WHAT IS HARD ABOUT THIS TONY REVENUE, A ONE-TIME LOOK AT A POINT IN TIME THAT IS NOT LOOKING AT MAYBE, WHAT IS THE PLAN LONGER-TERM? UNLESS WE MAKE THAT THE PLAN.

>> RICHARD RENO: THANK YOU. JUSTIN?

>> JUSTIN COFFMAN: A REALLY QUICK COMMENT, I WANT TO BRING CLARITY. ALL OF THE POSITIONS INCLUDING THE SIX ARE FULLY JUSTIFIABLE. THEY ARE MUCH NEEDED.

MY PERSONAL OPINION WAS IF WE ARE LOOKING TO CUT THE RATES, HE WILL HAVE TO CUT THE MNO PORTION.

TO ME, THAT WAS THE LOW HANGING FRUIT OF THAT.

NEVER TO CUT THAT RATE ANY AMOUNT, ESPECIALLY IF YOU WANT TO GO - - MNO SIDE. IN ORDER TO DO THAT, YOU HAVE TO POSITIONS. THAT WAS MY POINT IN SAYING THAT, NOT THAT I DID NOT THINK THE NEED WAS THERE, SIMPLY THIS WAS AN EASY WAY TO DO SOMETHIN .

>> ANNA HAMMONDS: I DO NOT UNDERSTAND WHO IS WRONG AND THE COMING ON THE STAFF POSITION IS JUST A WAY.

"OTHER STUFF, I GUESS AN UNDERSTANDING HOW DO WE GET TO THE .59? IS KIND OF HARD TO COMMUNICATE

THIS WAY. >> RICHARD RENO: GO AHEAD

WALTER. >> WALTER DARRACH: I THINK THERE ARE A LOT OF WAYS IN WHICH WE CAN WORK TO GET THE RATE CLOSER TO ITS, I HAVE SAID IT NOW MULTIPLE TIMES OVER THE LAST COUPLE OF WEEKS, I DO NOT KNOW HOW WE WENT INTO THE CITY HALL WORKSHOP $79 MILLION OVER BUDGET.

WE GO TO THE BUDGET WORKSHOPS AND WE ARE $2 MILLION AND THE WHOLE, THAT IS A BIG DEAL. WHEN HIS MOTHER MOVIES AND SAW SOMEOTHER FINANCIAL NUMBERS . THOSE WERE HIGHER THAN EXPECTED AND THAT WAS NO BIG DEAL. THEN WE WENT TO SOME MORE MEETINGS AND THOSE NUMBERS ARE HIGHER THAN EXPECTED, AND THAT WAS NO BIG DEAL. I WILL LEAVE THOSE AT THAT FOR DIFFERENT RULES. I'M TRYING TO UNDERSTAND, DO WE NEED TO COME UP WITH MONEY? OR DO YOU HAVE LIQUIDITY THAT WECAN FREELY THERE AROUND ? I HAVE HEARD BOTH SIDES OF IT

IN LESS THAN FIVE WEEKS. >> SPEAKER: THE DIFFERENCE IS ONGOING OPERATIONS VERSUS THE ONE-TIME EXPENDITURE.

TO ME, THAT'S WHERE A LOT OF THIS GOES DOWN TO.

YOU TALK ABOUT THE CITY HALL, ONCE THE MONEY IS SPENT, WE HAVE THE RESERVES AND WE SPENT IT, IT IS NOT RECURRING.

THESE POSITIONS, OR ANY POSITION, THEY WILL RECUR AND IT IS FUNDING FOR THAT ONE MECHANISM IN THE GENERAL FUND.

I THINK THAT IS THE DIFFERENCE. WE DO HAVE OTHER SOURCES OF MONEY. I THINK THAT THESE CAPITAL ITEMS ARE "EASIER" TO DO THAN THESE RECURRING EXPENSES THAT WE ARE NOT GOING TO GET RID OF EASILY.

I DO NOT WANT TO GET TO THE POSITION THAT WE ARE HAPPY TO HAVE TO TELL STAFF TO LAY PEOPLE OFF BECAUSE HE'LL HAVE THE MONEY. WE ARE NOT THERE TODAY.

>> WALTER DARRACH: SO IF WE HAD A YEAR OR TWO WHERE WE HAD

[00:45:03]

>> CHRIS: WE COULD.WE DO NOT TO FILL ANYONE OFF BUT - - ANOTHER THING I WOULD SAY ABOUT THE NO NEW REVENUE RATE.

WHEN YOU SAY WE HAVE TO GO TO THE NO NEW REVENUE, KEEP IN MIND THAT IF OUR VALUES DECREASE, WHICH THEY DID, THE NO NEW REVENUE RATE GOES UP. WE ARE ADOPTING A RATE HIGHER.

I WANT TO MAKE SURE THAT IS NOT ON THIS.

WE DID HAVE THAT IN THE LAST RECESSION WERE VALUES WENT DOWN OVERALL. IN THAT CASE, YOU HAVE AN INCREASE IN NO NEW REVENUE, BUT IT IS VERY DIFFICULT FOR COUNSEL TO RAISE THE TAX RATES DURING A RECESSION.I DON'T THINK THERE IS A STRONG LIKELIHOOD THAT YOU WOULD RAISE THAT RATE IF THAT WAS HAPPENING.

BUT I'M SPEAKING FOR FUTURE COUNSEL.

>> RICHARD RENO: THERE HAS BEEN - - IN PLAY RIGHT NOW, IT IS DIFFICULT TO ADDRESS THEM ALL. WE ARE WHERE WE ARE AT BECAUSE OF FISCAL POLICY OVER THE LAST 10 TO 15 YEARS.

WHICH HAS BEEN IN MY OPINION, VERY CONSERVATIVE AND ECONOMICALLY ACCOUNTABLE. WE TALK ABOUT STAFFING LEVELS, IS COMPARABLE TO MIDLOTHIAN? WE HAVE KEPT OUR STAFFING LEVELS, IN MY OPINION IN LINE. YOU LOOK AROUND, WE HAVE 100 LESS EMPLOYEES THAN WE DO CITY OF A COMPARABLE POPULATION SIZE DOWN THE ROAD. IS THAT GOOD OR BAD? IT IS WHAT IT IS. WE HAVE A BUDGET IN FRONT OF US THAT SAYS WE CAN TO CONTINUE TO DELIVER THE SERVICES TO THE POPULACE AND IN DOING THAT, YOU HAVE A DEFICIT THAT NEED TO BE ADDRESSED. WE DO NOT HAVE ROOM WITHOUT CUTTING SERVICES. ON ONE HAND, WE WANT TO CUT OUR TAX RATE, ON THE OTHER HAND WE WANT TO TACKLE THIS DEFICIT OF EMPLOYEES. I DON'T SEE HOW YOU DO BOTH.

THE POINT IS MADE TO THE VOTER .

THEY SAID YES, WE WANT THESE PROJECTS DONE AND PART OF THE COMMITMENT WAS THAT WE WILL MAINTAIN THE TAX RATES, YOU WILL NOT RAISE THE TAX RATES. WE WILL KEEP IT AT 675 AND WE WILL DO THAT. TO ME, THAT WAS A PART OF THE CONTRACT WITH THE CITIZENS. WE NEED CITY HALL, WE NEED A SAFETY CENTER. WE NEED ROADS AND WE NEED TO FUND THOSE AND WE NEED TO KEEP THE FLEXIBILITY IN GOING FORWARD, NOT TO ARTIFICIALLY CONSTRAIN OURSELVES.

WE MANAGE THROUGH THE LAST RECESSION BECAUSE OF FISCAL POLICY THAT GOT US THERE AT THAT POINT AND WE CONTINUE.

I AM CONFIDENT THAT WE CAN MANAGE THROUGH THIS UPCOMING FUTURE IN FRONT OF US, THOUGH I DON'T HAVE A CRYSTAL BALL.

WE NEED TO GO FORWARD WITH THESE PROJECTS.

IF WE CUT DOWN TO .599, WE HAVE WITH LITTLE BENEFIT, WE ARE TALKING ABOUT $150 ON AVERAGE TO A HOMESTEAD PROPERTY THAT WE ARE GOING TWO FOR $250, PUT OURSELVES IN A FINANCIAL BIND WE DO NOT HAVE MUCH LATITUDE AND WE ARE ALSO GOING TO LIMIT WHAT WE CAN DO IN THE FUTURE. I WILL YIELD FOR THE MOMENT.

>> CLARK WICKLIFFE: I'LL HAVE ANY QUESTIONS, MORE JUST COMMENTS. WHEN I FIRST ELECTED, I WAS IN THE 2017 BOND COMMITTEE, THEY SAID THEY WOULD HOLD - -4 SEVEN YEARS. ON THIS LAST BOND, THEY SAID THEY WOULD HOLD IT FORSEVEN YEARS AND HERE WE ARE .

I DON'T CARE WHAT OTHER VOICES ARE SAYING OUT THERE, WE HAVE SHOWN THAT WERE TRYING TO TAKE CARE OF TAXPAYERS BY GIVING THEM WHAT WE ASK FOR MAINTAINING GOOD FINANCIAL BALANCE. I FIND IT FUNNY THAT OUR

[00:50:01]

LIKE I SAID, I THINK WE HAVE DONE A GOOD JOB OF SHOWING THE CITIZENS THAT HE WILL MAINTAIN TO LOWER TAXES IS A REASONABLE PACE WHILE ISSUING THE BOND YOU ASKED FOR.THOSE WILL BE UP IN THE LAST FOUR YEARS. WE CAN TALK ABOUT DOING IT AGAIN NEXT YEAR. THE ARGUMENT WAS MADE IN THE LAST WORKSHOP THAT TAXRATES SHOULD CHANGE EVERY YEAR .

YOU WILL HAVE A DEBATE NEXT YEAR.

NOW, WE NEED THE MONEY TO DO THE PROJECTS PARTICULARLY ON THE MNO SIDE ON THE PROJECTS, WE'RE TALKING ABOUT IS WHAT CAUSES THE ISSUE. THERE'S BEEN A COUPLE OF TIMES WORKED UP BLENDED TOGETHER . WE CAN SPLIT THOSE APART FOR

CONVERSATION. >> RICHARD RENO: I THINK THE MAIN THING THE COUNCIL NEEDS TO DO, I UNDERSTAND CHRIS CLARIFIED NEED BE, WE NEED TO GIVE DIRECTION TO STAFF FOR SEPTEMBER 6 OF WHAT TAX RATE TO USE TO COMPLETE THE BUDGET AND

COMPLETE THE ISSUANCE OF DEATH. >> CHRIS: WE ARE SCHEDULED TO - - IF WE CAN GET DIRECTION BRING THE BOND SALE FOR THE TWO PROJECTS ON WALNUT GROVE. WE DO NOT WANT TO GO OUT TO THE MARKET UNTIL WE KNOW WHAT THE COUNCIL WANTS TO DO WITH THAT SO THAT THE DECK COULD BE STRUCTURED TO MEET THAT OBJECTIVE. THAT'S WHAT WE ABSOLUTELY CANNOT DO, GO TO THE MARKET AND COME BEFORE THE COUNCIL AND NOT SELL THOSE BONDS. BACK AROUND TO THE MARKET UNTIL WE HAVE THAT RATE. SO YES, A TOTAL RANGE AND WHAT YOU WANT TO DO ON THE MNO PIECE ARE APPROVED MNO RATE, WE WOULD KNOW WHAT THE REMAINING PORTION IS.

>> SPEAKER: MAYOR, HAVE A QUESTION FOR YOU.

CORRECT ME IF I'M WRONG, BUT THIS DOES REQUIRE SUPER

MAJORITY? >> RICHARD RENO: CLOSE, THE FINAL VOTE WOULD REQUIRE 60% SUPERMAJORITY WHICH IS FIVE COUNCIL MEMBERS TO SET THE TAX RATE.

TONIGHT WE ARE GIVEN A COUNSEL, WE ARE GIVING DIRECTION.

THE DECISION IS GOING TO BE THE SIXTH.

IF WE ARE GOING TO, IT WOULD BE PRESUMPTUOUS HERE, IF WE ARE GOING TO DELVE BACK INTO THE BUDGET, THEN WE NEED TO HAVE SOME SESSIONS BEFORE THE SIXTH. HOW SACRED IS THAT OR CAN THEY

BEMOVED ? >> CHRIS: WITH THE CURRENT PUBLICATION, WE CAN ADOPT ON THE 13TH, THAT THE LAST DATE WITHOUT REPUBLISHING A DIFFERENT DATE FOR THE HEARING.

IF WE NEED TO MOVE THAT BACK TO THE 13TH, WE CAN.

>> RICHARD RENO: THE 13TH IS A REGULAR COUNCIL SESSION, THE SIXTH IS A WORKSHOP, SPECIAL CALL SESSION.

[00:55:15]

>> RICHARD RENO: THE MUSICAL DOWN OTHER PATHS, I WANT TO HAVE THE QUESTION ABOUT WHAT EACH COUNCIL MEMBER THINK THE DIRECTION SHOULD BE OF STAFF BEFORE ASKED THAT QUESTION, ARE THERE OTHER AVENUES OR POINTS THAT YOU WANT TO DELVE IN

BEFORE ANSWER THAT QUESTION? >> WALTER DARRACH: THIS MAY NOT BE APPROPRIATE MAYOR, SO YOU CAN SHUT ME DOWN AND IT WILL HURT MY FEELINGS, IF I'M IN THE MINORITY OF - - IF SO, I WILL

LET THAT GO. >> RICHARD RENO: I WOULD YIELD SUCCESS INITIAL RECOGNITION, WE HAVE A PASSION FOR STAFF.

WE WOULD LIKE TO ADD TO THEM, BUT AT THIS POINT IN TIME, I COULD SEE US GOING BACK TO THE ORIGINAL PROPOSAL BY STAFF.

IN THAT CASE, I WOULD AGREE WITH YOU.

WOULD ANYONE ELSE ON THIS PARTICULAR POINT, IT IS FIVE POSITIONS, RIGHT? $600,000.

COUNSEL, DOES ANYONE WANT TO WEIGH IN ON THAT PARTICULAR

POINT? >> SPEAKER: CAN THEY NOT BE

FUNDED THROUGH THE DAILY FUND? >> CHRIS: ARE YOU TALKING ABOUT A FUND BALANCE? THAT IS BASICALLY HOW IT IS PROPOSED NOW, WE HAVE A DEFICIT AND THAT IS UP TO 2.6.

IT IS BEING FUNDED WITH THE UNRESERVED FUND NOW.

>> RICHARD RENO: THOSE NEW POSITIONS ARE BEING FUNDED REGARDLESS OF WHAT WE DO THROUGH THE FUND BALANCE? IF WE LEAVE THEM AND THEY WILL BE FUNDED, IF WE TAKE THEM OUT THEY WON'T? OKAY.

>> CHRIS: I GUESS FOR CLARIFICATION, THE USE OF THE FUND BALANCE OF THE 2.6, THAT COULD REALLY BE CONSIDERED FINDING SOMETHING FOR IT IS NOT BE SPECIFICALLY TIED TO THOSE POSITIONS, I JUST WANTED TO BE CLEAR.

IT CAN BE FUNDING ROADS OR WHATEVER YOU WANT TO CALL THAT YOU ARE USING THE FUND BALANCE FORWARD.

>> RICHARD RENO: WHAT WE WOULD LIKE TO DO, AND I WILL ECHO WHAT CHRIS JUST SAID, WE WOULD NOT TO LIKE USE THE FUND BALANCE TO FUND RECURRINGCOSTS .

OF COURSE, THERE IS THE CAVEAT OF ROADS WHICH I WON'T GO INTO.

FROM MY CORPORATE EXPERIENCE - - ONLY FOR CAPITAL ITEMS, NOT

FOR EXPENSE ITEMS. >> WAYNE SIBLEY: WE SPENT AN AWFUL LOT OF TIME COMING UP WITH THOSE NEW POSITIONS, SO WE REALLY NEED TO GET THEM. I UNDERSTAND WHAT YOU ARE SAYING, [INAUDIBLE] DON'T WANT TO ADD TO IT.

>> WALTER DARRACH: CAN I MAKE A COMMENT TO THAT? I JUST WANTED SOME CLARIFICATION ON THE USE OF THE TERM FUND BALANCE AND RECURRING EXPENDITURES FOR THE FUND BALANCE. CORRECT ME IF I AM WRONG, ALL OF THE MONEY COMES INTO WHAT WOULD BE THE GENERAL FUND IN THIS CASE. ONCE IT IS ALLOCATED TO AN ANNUAL LINE ITEM ON THE BUDGET, IT IS MOVED INTO THAT PAYABLE CATEGORY SO TO SPEAK. IT ALL ORIGINATES FROM THE FUND BALANCE REGARDLESS. HELP ME WHAT YOU MEAN BY

RECURRING EXPENDITURES? >> CHRIS: PERSONNEL MAINLY.

WE KNOW THEY ARE GOING TO BE THE BUDGET NEXT YEAR AND THE YEAR AFTER THAT. IF YOU LOOK AT THE ROAD REHAB PROJECT, WE WILL DO THAT REAL REHAB PROJECT, AND WE WANT TOUCH THAT ROAD AGAIN FOR ANOTHER FIVE YEARS.WE MAY

[01:00:01]

IF I WOULD CALL THAT RECURRING. >> WALTER DARRACH: ALL MONEY STARTS IN ESSENTIALLY THE GENERAL FUND, RIGHT? ASIDE FROM THE UTILITY FUND OR ANY OTHER SPECIFIED FUND, THEY ALL START AS AN UNRESERVED DOLLAR UNTIL IT IS RESERVED FOR A SALARY OR A RECURRING EXPENDITURE.

>> RICHARD RENO: READING I CALL IT COMING FROM UNRESERVED, WE HAVE THE CURRENT REVENUE. I THINK WE DIVIDED BETWEEN CURRENT REVENUES, SALES TAX ALL THE OTHER THINGS IN THE GENERAL FUND OR SHOULD THE UNRESERVED WHICH IS NOT BEING FUNDED.

MONEY AND REVENUE COMES IN, IT GOES TO A CHECKING ACCOUNT WHICH WE CALL THE RESERVE FUND. TO SPEND MONEY, WE WRITECHECKS , IT TAKES MONEY OUT OF THAT CHECKING ACCOUNT AND SPEND IT.

OVER THE COURSE OF THE YEAR THAT FUND BALANCE - - UP AND DOWN FOR THE COURSE OF THE YEAR.

I TEND TO LOOK AT THE END OF THE YEAR OR SOME COMMON POINT.

I LOOK FOR TRENDS YEAR OVERYEAR .

ALL OF OUR REVENUE GOES INTO WHO WE ARE GOING TO WRITE CHECKS AGAINST THE AS WE WRITE THE CHECKS WILL BE SPEND MONEY FOR WHATEVER REASON AND IT HAS TO BE BUDGETED, IT WITHDRAWALS.

THAT AT SOME POINT IN TIME, YOU LOOK AT THE FUND BALANCE AND THINK HOW MUCH DO WE HAVE IN OUR SAVINGS ACCOUNT? WE TEND TO TALKING DAYS WHICH IS INTERESTING BECAUSE OF THE EXPENSE PER DAY THAT WILL CHANGE OVER TIME.

THE INFLATIONARY PERIOD WILL GO UP.

>> WALTER DARRACH: WHAT IS THE EXPENSE OF ONE DAY? SO JUST REAL QUICK SO I UNDERSTAND THIS, STATE LAW REQUIRES WE KEEP A 90 DAY FUND BALANCE, IS THAT CORRECT? OUR POLICY REQUIRES BE GIVEN A 90 DAY FUND BALANCE.

HISTORICALLY WE HAVE KEPT AB? >> CHRIS: 180.

>> WALTER DARRACH: 180. IN RECENT YEARS, WE HAVE HOW

MUCH? >> CHRIS: WE HAVE EXCEEDED 200 BEFORE. I GUESS IT DEPENDS ON WHAT POINT IN TIME. IF YOU LOOK AT OUR BANK ACCOUNT IN FEBRUARY AFTER ALL THE TAX MONEY CAME IN, IT MIGHT BE 300.

>> WALTER DARRACH: THE ROLLING AVERAGE FUND RESERVE BALANCE?

>> RICHARD RENO: FOR THE LAST FOUR YEARS, WE WERE ON THE 150 TO 1 6070 BUT BECAUSE THE EVENTS OF THE LAST YEAR OR SO, THIS IS AN ANOMALY. WE WANT TO GET THE RESERVE FUND FACT DOWN IN THE 150 TO 180 RANGE.

THAT IS KIND OF WHAT I AM HEARING.

>> WALTER DARRACH: RECURRING STAFF EXPENDITURES WOULD HELP IN LOWERING THE UNRESERVED FUND BALANCE, CORRECT?

>> RICHARD RENO: IT WOULD BE A PLACE WE BRING OUR NUMBER DOWN.

>> WAYNE SIBLEY: WE HAVE GONE BELOW IT, WE HAVE GONE ABOUT IT, BUT THE GOAL IS 180 THE NEXT FEW YEARS.

JUSTIN? >> JUSTIN COFFMAN: TO MR. SIBLEY! EARLIER, I UNDERSTAND THE POINT ABOUT STAFFING SHORTAGES AND NEEDS, I WAS DEFINITELYIN THE MINORITY . I WOULD CONTEND THAT THOSE POSITIONS COULD BE FILLED OVER TIME AND GIVEN OUR POTENTIAL ECONOMIC SITUATION, IT MIGHT BE MORE PRUDENT FOR US TO LOWER THE TAX RATE THIS YEAR, PUSH THOSE POSITIONS OFF TO ANOTHER YEAR AND SEE WHERE WE END UP THERE.

I HATE TO GO BACKWARDS IN A DISCUSSION.

[01:05:11]

>> WALTER DARRACH: CAN THE SAME BE SAID FOR CITY HALL SCOPE?

>> JUSTIN COFFMAN: @I WAS SAY PROBABLY A DIFFERENT DISCUSSION, BUT YOU HAVE ONE SHOT AT CITY HALL, IT HAS TO BE

RIGHT. >> WALTER DARRACH: STATISTICALLY OVER THE LAST SEVERAL WEEKS, THE COST OF MATERIALS IS GONE DOWN. WAITING A LITTLE BIT, ESPECIALLY IN A PENDING RECESSION, MAY PROVE TO SAVE US

MONEY ON CITY HALL. >> RICHARD RENO: THAT IS TRUE AND CASUALLY, I TALKED ABOUT THAT BUT WE HAVE NEVER TAKEN IT HEAD ON. YES, WE COULD DELAY.

THE CITY MANAGER AND I TALKED TO OUR SPIRITS AND ALL THIS, A MONTHLY INCREASE IN PRICES AND THE CONTINUED DELAYS IN THE SUPPLY CHAIN . AGAIN, I DON'T HAVE A CRYSTAL BALL, BUT I THINK GOING FORWARD BECAUSE WE CANNOT IS MY INCLINATION. I THINK THE QUESTION RIGHT NOW, IS THIS DIRECTIONAL? I PREFER TO GO DOWN THE LINE AND EVERYBODY GIVEN NUMBER. IF YOU HAVE A DIFFERENT WAY OF HANDLING THIS, GOING FORWARD, WHAT IS THE TAX RATE THAT WE WILL STAFF TO PREPARE FOR 6 SEPTEMBER.

I WILL GIVE EVERYONE A MOMENT TO REFLECT.

YOU WILL START FROM LEFT TO RIGHT.

WALTER? >> WALTER DARRACH: I THOUGHT I

PUT IT DOWN, BUT 59.5914. >> RICHARD RENO: ANNA?

>> ANNA HAMMONDS: I'M NOT QUITE SURE IF I CAN ANSWER THIS QUESTION. I DO NOT FEEL LIKE WE HAVE HAD ADEQUATE DISCUSSION. I WOULD LIKE TO HEAR THE ARGUMENT FROM WALTER AND HUD OF HOW WE WILL GET TO 59, IF I WAS GOING TO PICK A NUMBER RIGHT NOW I WOULD SAY 663.

>> JUSTIN COFFMAN: I DON'T KNOW THE EXACT NUMBER, I APOLOGIZE,

I AM AT THE 65 RANGE. >> RICHARD RENO: IF I MIGHT BACK TO ANNA! ANNA'S POINT, NOW I GUESS IS THE TIME TO TACKLE THIS QUESTION.

>> WALTER DARRACH: >> SPEAKER: IS NOT THE COUNCIL MANAGER'S JOB TO TALK ABOUT - - THAT WOULD BE ABETTER QUESTION

FOR THE CITY MANAGER . >> RICHARD RENO: YES.

>> CLARK WICKLIFFE: HE DID NOT COME UP WITH THE 663 BUDGET.

MY POINT BEING THAT WE DID NOT ASK HIM TO CHANGE, WE DO SO WE WERE GOING TO ADD THE DEFICIT. IT'S REALLY NOT AS BUDGET, IT'S

THE ONE WE CREATE. >> RICHARD RENO: IF YOU TAKE THAT, ALL THINGS BEING EQUAL, I CANNOT ASK THAT.

>> SPEAKER: EXACT TIMELINES, THERE ARE A WHOLE LOT OF THINGS

[01:10:03]

- - >> IS STILL IS THE 1.2.

>> AN ADDITIONAL 1.2. >> IT WAS THE 1.2.

IF THE QUESTION AT THAT POINT DIVINE - - REDUCE THE 1.2, THAT IS EASY. LET'S OPEN THE BOOKS BACK, WE CAN PEEL SECURITY $2000 UP ENTIRE BUDGET AS LONG AS WE ARE WILLING TO GO INTO THE DEPARTMENTS AND NOT TAKE ANYTHING OVER A 10% INCREASE . 660 ON $46 MILLION BUDGET, WE

ARE ALREADY AT DEFICIT BUDGET. >> RICHARD RENO: WHEN YOU SAY THAT, IS THE ANSWER TO TAKE THE DEFICIT OUT OF THE RESERVE FUND? AND HOLD TO THE BUDGET.

TO GO TO 599, WE CANNOT DO THAT WITH THE RESERVE FUND.

YOU WILL HAVE TO DO A COMBINATION OF REDUCING THE MNO

AND THE DEBT SIDE. >> WALTER DARRACH: ARE WE STILL

WAITING TO BE CALLED ON? >> RICHARD RENO: YES,

TECHNICALLY. >> WALTER DARRACH:I WAS JUST

GOING TO SAY . >> CLARK WICKLIFFE: IF YOU COULD TELL ME HOW TO GO TO 59, I WOULD LOVE TO SEE IT.

MY WHOLE PRINCIPAL IS THAT THE VOTERS ISSUED THE DEBT, I WILL NOT TAKE THE HIT ON THE DEBT SIDE.

THEIR VOICE OUTWEIGHS ANY VOICE THAT SAYS NO NEW REVENUE.

IF YOU ALL CAN SHOW ME HOW TO DO IT WITHOUT TOUCHING THE DEB

. >> WALTER DARRACH: I WILL SUPPORT YOU HUNDRED PERCENT IF YOU CAN COMMIT TO REDUCING THE

CITY HALL BUDGET BY $7 MILLION. >> CLARK WICKLIFFE: THE CITY

PORTION? >> WALTER DARRACH: THE WHOLE BUDGET. IF YOU ARE TELLING ME WE HAVE TO STICK TO WHAT THE VOTERS VOTED FOR, I AGREE 100%, BUT THEY DO NOT BOTH FOR A $7 MILLION BUDGET OVERRUN.

>> CLARK WICKLIFFE: I AGREE. >> WALTER DARRACH: BUT IF YOU

ARE GOING TO USE THAT AS THE. >> AS TO WHY WE CANNOT DO BETTER, I WILL SAY I WILL STAND WITH YOU AND TAKE THE HIT ON THE SIDE AND CHANGE MY VOTE, BUT I WOULD CONTEND THAT WAY TO

GET CITY HALL ON BUDGET. >> CLARK WICKLIFFE: I AGREE

THAT WE WANT TO GET IN BUDGET. >> WALTER DARRACH: NOT WANT TO, HAVE TO. THAT WOULD BE MY CONDITION.

>> RICHARD RENO: WITHOUT TURNING OVER STARTING OVER, THIS IS OPINION, IT TAKES $7 MILLION OUT OF THE PROPOSED CITY HALL, WE WOULD HAVE TO START COMPLETELY OVER.

>> ANNA HAMMONDS: SAYING 7 MILLION OVER AND OVER AND OVER AGAIN, TO SAY THAT WE ARE OVER BUDGET 7 MILLION, I DO NOT LIKE THAT IS A FULLY ACCURATE STATEMENT.

ARE THERE THINGS ADDED IN THAT WERE OUTSIDE OF THE SCOPE OF WHAT LED TO THE VOTERS? THAT IS UP FOR DISCUSSION, IT CAN BE REMOVED OR POSTPONED. I'M NOT SAYING CUT IT, BUT TO SAY FLAT OUT WE ARE OVER BY $7 MILLION, IT IS NOT THAT BLACK

AND WHITE. >> WALTER DARRACH: IT'S FIRE WITH FIRE. IF YOU SEE WE HAVE TO DO ABCD, I WOULD SAY THE VOTERS VOTED FOR CITY HALL I WAS ON A CERTAIN DOLLAR AMOUNT AND IT IS NOT TO EXCEED THAT.

>> RICHARD RENO: THE DECISION TO THE COUNCIL IS TO BE SCALED BACK TO CITY HALL OR RECOGNIZE THAT FROM ONE PERSPECTIVE, THERE ARE OTHER PERSPECTIVES, THAT IS $7 MILLION MORE THAN WE SAID BACK IN THE BOND ELECTION BACK BEFORE A LOT OF THE EVENTS THAT HAPPENED. THE QUESTION IS FROM THIS PERSPECTIVE, WHAT CITY HALL DO WE WANT TO BUILD? PART IF THAT IS WHEN. HUD?

[01:15:07]

WE CAN GO TWO FOR A OR 4B, WE CAN GO TO THE RESERVE FUND.

THERE ARE OTHER THINGS, BUT I DON'T THINK THEY WOULD HAVE THE

IMPACT OF THOSE THREE. >> A AND B MONEY HAS TO BE VOTED ON AND APPROVED BY THEIR BOARDS.

IF THEY TELL US NO, IT IS NOT A VIABLE FUNDING SOURCE.

>> RICHARD RENO: WE HAVE HEARD FROM BOTH PRESIDENTS THAT THEY

ARE WILLING TO DO THAT SO FAR. >> CLARK WICKLIFFE: PRINCIPALLY, I GET IT. I AM ONE OF THE FOUR THE HEALTH OF THE PART AND I WOULD BE COMPLETELY HONEST IN SAYING ONE OF THE MOST MISERABLE TIMES IN MY LIFE ON COUNSEL, I WAS BELITTLED ON EMAILS AND PHONE CALLS, YOU KNOW PEOPLE SAY ABOUT IT TODAY? IT'S A GREAT PARK.

NOT A SINGLE PERSON TALK ABOUT HOW MUCH OVER WE WENT.

PERSONALLY I AGREE, I NEED TO CALM DOWN.

I CAN'T ANSWER FOR WHAT THE CITIZENS WANT, APPARENTLY I WAS WRONG. THEY DO NOT WANT TO KEEP IN BUDGET, THEY WANTED THIS NICE, FANCY PARK.

I AM FINE WITH TRYING TO TRIM IT DOWN AND WORK ON IT.

>> RICHARD RENO: HOW DO YOU PROPOSE TO TRIM?

>> ANNA HAMMONDS: I JUST WANT TO MAKE SURE, LET ME KNOW IF I'M MISREMEMBERING, WHEN WE HAVE A WORKSHOP ABOUT CITY HALL, I REMEMBER SOMEONE ASKED, IS THAT 25 MILLION OF THE VOTERS APPROVED, IS THAT IN HERE? ARE WE TECHNICALLY STICKING TO THAT? ARE ALL THE EXTRAS KIND OF OUTSIDE OF THE SCOPE OF WHAT

WENT TO THE VOTERS? >> FOR THE MOST PART YES.

TWO AUTHORS POINT, THERE ARE THE UTILITIES.

[INAUDIBLE]. THOSE TYPES OF THINGS THAT ARE BEING TAKEN OUT OF THE 25 MILLION.

>> WALTER DARRACH: I WAS SAY YOU CANNOT BUILD A CITY HALL AND TURN THE LIGHTS ON AT THE UTILITIES UNDERNEATH.

YOU CANNOT BUILD A CITY HALL IF THE BUILDINGS WE ARETHE BODY.

A LOT , WE DID NOT DO THAT. IN ONE SIDE OF THE CONVERSATION, THOSE ARE EXTRAS AND NOT TO THE CONSTRUCTION OF THE CITY HALL BUILDING, BUT IN REALITY, WHAT IS REMOVABLE FROM THE SCOPE IS VERY LITTLE AND THE IMPACT IS NOT AS GREAT AS

YOU WOULD HOPE. >> ANNA HAMMONDS: I WAS GOING TO SAY SOMETHING, BUT WAYNE IS WAITING SO PATIENTLY OVERTHERE

. >> WAYNE SIBLEY: WE HAVE BEEN WITH THE CITY HALL FORQUITE A WHILE .

WE DECIDED THAT WHAT WE HAVE. [INAUDIBLE] THAT IS WHERE WE GIVE STAFF DIRECTION. WILL BE CHANGED AGAIN NEXT WEEK IN THE NEXT WEEK AFTER THAT? I THINK WE ARE GETTING TOO DEEP INTO, I DON'T KNOW, ITHINK WE ARE GETTING AWAY FROM BUDGET PER SE . NOW WE ARE SAYING WELL, WE CAN GET THAT FROM CITY HALL. WHEN YOU WANT THE PEOPLE AT CITY HALL, WE DO NOT HAVE A DRAWING, WE HAD AN ESTIMATE.

THAT IS WHAT WE WERE WORKING ON WITH THE CITIZENS.

HOW GOOD IS YOUR ESTIMATE? WE MISSED IT.

I THINK WE WOULD BE SHOT IN THE FOOT IF WE DON'T.

>> RICHARD RENO: JUSTIN? >> JUSTIN COFFMAN: MAYOR, I THINK WE ARE OFF-TOPIC HERE.I THINK THIS WARRANTS A WORKSHOP

[01:20:03]

IN ITSELF. >> RICHARD RENO: IT'S BECAUSE OF THE DEBT SIDE OF IT I AGREE WITH YOU IN PART, BUT POINT WELL TAKEN. AND I?

>> ANNA HAMMONDS: I DO NEED HELP LINKING THE CONVERSATION

TO THE ACTUAL TAX RATE. >> WALTER DARRACH: SURE, OUR

TAX RATE . >> RICHARD RENO: WALTER, WILL

YOU YIELD PLEASE? >> WALTER DARRACH: I THOUGHT

SHE WAS ASKING ME. >> ANNA HAMMONDS: I WAS LOOKING

OVER AT WALTER. >> RICHARD RENO: WALTER, I DID NOT KNOW SHE WAS LOOKING AT YOU, GO AHEAD.

>> WALTER DARRACH: CORRECT ME IF I'M WRONG, BUT OUR DEBT LOAD CAPACITY AND REPAYMENT CAPACITY IS HALF OF OUR TAX, RIGHT? THE AMOUNT OF DEBT THAT WE ISSUE IN THE REPAYMENT SCHEDULE OF THAT DEBT ISSUANCE IS 50% OF OUR TAX RATE.

IF WE SPENT A LOT OF MONEY IN DEBT, WE HAVE TO COMPENSATE AT A 50% TAX RATE TO SPEAK TO PAY IT BACK.

IF WE SPEND LESS, OUR TAX RATE CAN COME DOWN FOR THE BALANCE BETWEEN MNO AND DEBT BECAUSE OF THAT RIGHT THERE.

>> RICHARD RENO: IN PRINCIPLE, WE ARE CORRECT HOWEVER, THE DEBT SIDE IS 45% OF THE TAX RATES.

>> CHRIS: THE REMAINING 31 WAS THE DEAD.

IT IS PRETTY CLOSE. >> RICHARD RENO: WELL, DEPENDS ON YOUR APPROACH AND FISCAL POLICY AND PLAN.

I CONTEND THAT WHAT IS GOTTEN THIS YEAR IS THAT WE ARE WELL POSITIONED FOR THE NEAR TERM FUTURE.

I THINK ADVOCATE FOR THE COURSE OF THE POLICY, OR DARE I SAY IT, PHILOSOPHY LIKE ATTITUDE THAT WE SHOULD MAINTAIN.

TO TAKE A DIFFERENT APPROACH ON DEBT MANAGEMENT IS COUNTERPRODUCTIVE AND NOT IN THE BEST INTEREST OF THE CITIZENS OVER THE NEXT 5 TO 10 YEARS, OR EVEN LONGER BUT I WILL STICK TO 5 TO 10 YEARS. WALTER?

>> WALTER DARRACH: I DON'T DISAGREE WITH WHAT YOU SAID.I THINK WE HAVE DONE A GREAT JOB YEAR-OVER-YEAR.

PROBABLY THE EASIEST WAY TO SAY THIS, I THINK WE MAY LOOK LIKE WE ARE DOING BETTER THAN WE ARE BECAUSE WE HAVE ENJOYED EXPLOSIVE GROWTH YEAR-OVER-YEAR.

BECAUSE OF THAT, WE ARE PROTECTED CONSISTENTLY EXPENDITURES AND REVENUES AND WOULD BRING IN MORE AND MORE NUMBER MONEY, AND WANTED THAT WILL BE THE CASE.

BE A POLITICALLY OR ECONOMICALLY ACROSS THE COUNTRY, OR EVEN JUST WHEN WE REACH BUILD OUT, BUDGETING WILL BE WILL BE INCREDIBLY MORE DIFFICULT ONCE WE ARE BUILT OUT. WHEN WE DO NEED MASSIVE INFRASTRUCTURE DOLLARS, IT IS GOING TO TAKE TAX INCREASES TO DO SO. RIGHT NOW WE ARE SPENDING A CERTAIN AMOUNT OF A BUDGET FOR NEXT YEAR'S ANTICIPATED INFLUX THAT IS A LUXURY THAT WE GET TO ENJOY, I AM ASKING THAT WE FIND A WAY WITH HOW WE SPEND AND WHAT PACE WE SPEND FOR THE LONG-TERM FINANCIAL HEALTH. WE CAN HELP THE TAX RATE, LOWER THE TAX RATE, BUT AT THE END OF THE DAY, THAT IS FOR THREE

YEARS TIME, FIVE YEARS TIME. >> WAYNE SIBLEY: I KEEP HEARING AND SAYING THE SAME THING, WE KEEP GOING OVER IT.

I'VE GOT TO GO BACK TO WHAT THE CITY MANAGER HAS PUT TOGETHER ON THE BUDGET. $48 MILLION, I NEVER HANDLED A BUDGET UPDATE. I HAVE BEEN AGAINST PROBLEMS.

[01:25:08]

WE ALREADY CUT A 1.2. I'M NOT AGAINST CUTTING A TAX RATE, BUT NOT FOR THE SAKE OF CUTTING TAX RATE WOULD SINCE THE BUDGET WAS PRESENTED ON WHAT, 7.5? WE WOULD'VE CUT IT DOWN TO SIX AND WE HAVE TO ADJUST.

THEN THERE WILL COME A LONG AS FAILURE TO ADD TO THESE POSITIONS. WHICH WE FEEL LIKE, THEM AND ASKED FOR BY STAFF. IN OUR MIND, WE FEEL LIKE YOU ALSO DO THAT AT THIS TIME. THIS ALL STARTED CLASS MEETING WITH THE MAYOR SAID WE NEED TO DETERMINE THE MASSIVE TAX RATE.

WE WENT ALL OVER THE GLOBE AND CAME UP WITH ONE.

I AM DISAPPOINTED THAT WE ARE NOT LOOKING AT DOING THAT.

>> RICHARD RENO: THANK YOU WAYNE.

IN SOME WAYS BE BENEFIT FROM THAT, WE ARE ALSO EXPERIENCED AN INCREASED DEMAND ON THE CITY FOR SERVICES AND OTHER THINGS.

THE BUDGET AS PRESENTED HAD 11% INCREASE YEAR-OVER-YEAR.

WE DECIDED TO GIVE STAFF WHAT WILL AMOUNT TO A 15% INCREASE WHICH IS OVER, LET'S SAY HALF THE BUDGET.

THAT MEANS THE OTHER HALF MUST BE GROWING AT A FIVE OR 6% RAT . WE HAVE IN THE LAST YEAR LOOKED AT INFLATION. 3.5% NO NEW TAX RATE IS TO ACCOMMODATE FOR INFLATION. IF YOU GO BACK AND MOTHER USED TO GIVE US 8%. WE ARE MANAGING OUR CITY GOING INTO A PERIOD OF INFLATION IN EXCESS OF 3.5%.

THE FISCAL POLICY THAT WE HAVE HAS DONE US WELL AND YES, WE ARE MOVING TO BUILD OUT, BUT SAY WE WILL BUILD OUT IN 20 YEARS. AS WE APPROACH BUILDOUT, OUR REVENUE STREAMS ARE JUST REACHING A REVENUE THAT IS GOING TO CHANGE ENEMY TO CHANGE IT TO ACCOMMODATE THE POINTS THAT WERE MADE ABOUT INFRASTRUCTURE IN THE CITY.

FOR THE NEXT 5+ YEARS, I CONTEND THE PHILOSOPHY, THE APPROACH THAT WE HAVE USED, WE SHOULD MAINTAIN FOR AT LEAST FIVE MORE YEARS. THE CHANGE OF THE UNCERTAINTY AND THE CHANGE, AND THE REVENUE STREAM, THE CHANGE IN DEMAND ON SERVICES ARE 10 TO 15 YEARS OUT IN THE FUTURE.

IN THE NEAR TERM, THE 5 TO 10 YEAR WINDOW, I ARGUE THAT WE MAINTAIN THE REPORTS THAT WE ARE WHICH IS BOTH MNO AND DEBT MANAGEMENT. ANNA?

>> ANNA HAMMONDS: JUST TO REFRESH YOUR MEMORY, IF I REMEMBER RIGHT, IN ORDER TO EVEN GET DOWN TO .663, WE ARE MAKING UP 3.2 MILLION. IT WAS 2.4 50 GOING OUT EXTRA WAS 3.2. I JUST MEAN OVERALL, NOT TALKING ABOUT WHAT SIDE IT IS COMING OUT OF.

IT'S THE EQUIVALENT OF 177 DAYS IN FUND MUNICIPALITY OR RESERV , WHATEVER YOU WANT TO CALL IT. UNRESERVED BALANCE OF THE

[01:30:01]

[INAUDIBLE]. >> ANNA HAMMONDS: THAT IS IF WE WERE TO TAKE IT ALL OUT OF ONE POCKET THAT IS A GENERALIZATION, RIGHT? NO, THAT IS TO GET THE DEFICIT TO HIT THE.663. WE WERE UNDER 2.4 ALREADY WITH THE DEFICIT AT THE .675 RED 1.9.

THEN TO LOWER IT, THERE WE GO. [INAUDIBLE].

WITH THE EXTRA STAFF MEMBERS. CHRIST MILLION OFFICIALLY APPROVED THE STAFFING. IF WE WERE TO GET DOWN TO .663 WITH THE FIVE EXTRA STEPTHAT WE TALKED ABOUT , THAT IS FOR THE 3.2 MILLION COMES FROM. [INAUDIBLE].

HE WAS SAYING ATTHE 2.6 BECAUSE THE REST OF HIS COMING UP TO THE DEBT SIDE . THAT APPROXIMATELY GET US DOWN TO OUR 180 DAY MARK AND THAT DOES NOT INCLUDE THE PROJECTS WE HAVE IN FRONT OF US. [INAUDIBLE].

>> RICHARD RENO: IT IS 5:33 AND TAKE A HARD STOP AND WORKSHOP AT 5:45 SO WE CAN HAVE A BREAK. I SUPPOSE THIS DISCUSSION CAN CONTINUE TO THEFIRST AGENDA ITEM .AT 5:45 WE'RE GOING TO

TAKE A HARD STOP. >> ANNA HAMMONDS: MY POINT IN ALL IF THAT IS I FEEL LIKE SIGNIFICANT WORK AND DISCUSSION WENT TO GETTING IT UP THE.663. [INAUDIBLE].

[01:35:23]

>> ANNA HAMMONDS: ARE YOU OUT? SO, CAN I ASK?

>> WALTER DARRACH: I DO NOT HAVE ANYTHING TO SAY, I WAS JUST LETTING THEM KNOW THAT THE MICROPHONE WAS NOTWORKING .

>> ANNA HAMMONDS: GO AHEAD, I WILL THINK ABOUT HOW I AM FREE

TO ASK THIS. >> MY ONLY QUESTION IS ANNA, HE SAID ON AVERAGE WE ARE 115 BEHIND THE STAFF OF THE COMP CITIES WE JUST USED FOR THE COMPENSATION STUDY THAT WE DID? BUT WE ARE ALREADY OPERATING AT A BUDGET DEFICIT, SO CHRIS, YOUR PROFESSIONAL OPINION, ARE WE OVERSPENDING?

>> CHRIS: I THINK YOU'RE USING THE FUND BALANCE TO GET BACK TO

OUR TARGET. >> IN GENERAL PRACTICE.

ARE WE OVERSPENDING YEAR OVER YEAR ON AVERAGE DOUBLE HE WAS 115 STAFF MEMBERS BEHIND WHAT WE CONSIDERED EARLIER IN THE

YEAR COMPARABLE CITIES? >> I DO NOT UNDERSTAND YOUR LOGIC LEAD TO THEIR FROM BEING SHORT OF THIS TACTIC

OVERSPENDING. >> WE HAVE A BUDGET DEFICIT WITH 150 POSITIONS SHORTCOMING .

>> RICHARD RENO: THAT'S RELATED TO THE BUDGET DEFICIT BECAUSE THE FIRST PASS BY STAFF, USUALLY NEED TO SPEND.

IT'S TO MEET OUR OBLIGATIONS AS A CITY.

WHEN WE DO THAT, WE COME UP WITH THIS SHORTFALL WHICH NEED TO BE MADE UP SOMEHOW. THE FACT THAT WE ARE OVER UNDERSTAFFED DOES NOT CORRELAT .

>> WALTER DARRACH: IF WE HAD HUNDRED 50 MORE STAFF MEMBERS, WHICH IS THE AVERAGE OF THE CITIES BE PULLED FOR THE COMPENSATION STUDY WE JUST DID FOR OUR OWN CITY, WE WOULD BEEN

A BIG HEAP OF TROUBLE. >> RICHARD RENO: BUT THAT COMPENSATION STUDY WAS TO SAY I WAS OKAY COMPARED TO OTHER CITIES? THE INFERENCE IS NOT THAT WE ARE LIKE EACH OTHER, IN FACT WE HAVE VERY DIFFERENT PROFILES.

THIS IS FROM A STAFFING PERSPECTIVE, HOW MUCH DO WE NEED TO PAY STAFF TO BE COMPETITIVE?

>> WALTER DARRACH: I AGREE, BUT WHEN WE WENT OUT WE HIRED A FIRM TO IDENTIFY COMPARABLE CITIES.

>> CHRIS: BASED ON A SET OF CRITERIA, WE WERE TRYING TO FIND SOMETHING AS COMPARABLE AS WE COULD FIND.

I THINK WE OVERSPENDING? I THINK IF YOU LOOK THROUGHOUT LINE ITEMS THERE IS A BUNCH OF OVERSPENDING GOING ON.

I THINK YOU GET TO THE SITUATION OVER YEARS TO DIFFERENT APPROACHES BUT BECAUSE WE ARE GROWING COMMUNITY, TO YOUR POINT A LOT OF IT HAS BEEN ON THE DEBT SIDE. GO ALL THE WAY BACK TO WHEN WE DISSOLVE THE WATER DISTRICT AND TOOK ON THEIR $0.20 A DAY, IT HAMMERED THE CITY'S OPERATION RATE SO THEY DO NOT HAVE TO RAISE THE TAX DECISION. THAT'S BEEN GOING OUT TO 2004.

THEN YOU HAVE TO BUILD UP OVER TIME WITH THESE CAPS IN PLACE.

UNLESS YOU ARE GOING TO EXCEED THOSE CAPS ALL THE TIME, YOU WILL HAVE TO OPERATE IN A CERTAIN RANGE AND THAT IS HAPPENED OVER TIME. DIFFERENT COMMUNITIES ARE SO DIFFERENT ON THE INFRASTRUCTURE NEEDS, ETC. I DO NOT KNOW IF WE WERE ANY BETTER OR WORSE, WE ARE JUST DIFFERENT OBVIOUSLY TO YOUR POINT, WE NEVER DID MAKE UP 75 OR 100 STAFF MEMBERS THIS HAS BEEN A LONG TREND GOING FOR A LONG TIME.

I CAN SPEAK TO WHAT HAS BEEN HAPPENING HERE OVER THE LAST 15 YEARS, BUT BEFORE THAT I DON'T REALLY KNOW.

[01:40:13]

>> WALTER DARRACH: HAVE YOU EVER GONE TO THE VOTERS FOR A TAX RATE INCREASE VOTE?> RICHARD RENO: NO.

BUT KEEP IN MIND, THAT IS RECENT.

THE 3.5% ASSERTED THAT, SO BEFORE THAT YOU COULD.

IT WAS AFTER 2014. THEY CAME OUT AND RAISE THE TAXES AND THERE WAS AN INCREASE BEFORE THE AS WELL.

YOU ARE SUBJECT TO ROLL BACK BACK THEN BUT THAT WAS THE POSITION OF THE BORDER AND THEY DO NOT PETITION TO HAVE A VOTE.

AT SOME POINT, WE WILL HAVE TO GO OUT TO THE VOTERS AND ASK THEM TO DO THAT, BUT THAT WILL BE A CHOICE OF COUNSEL AT THAT TIME TO SEE WHAT THATNEEDS TO BE .

HOW MUCH AND WHEN THAT NEEDS TO TAKE PLACE.

>> ANNA HAMMONDS: THOSE IN FAVOR OF LOWERING TO THE .59, IS IT BEING OKAY WITH A RESTRUCTURING OF THE DEBT AND THEREFORE DELAYING PROJECTS? IS THAT THE COMPROMISE?

>> AM VERY OKAY WITH THAT. >> CAN YOU DRAW THE LINE FOR ME OF WHY WE ARE STICKLERS ON THE WHOLE 25 MILLION FOR THE BAR FOR CITY HALL BECAUSETHAT IS WHAT THE VOTERS SAID ?

>> PERSONALLY ME, WE TOOK ON TOO MANY PROJECTS AT THE SAME TIME. BECAUSE OF MY POSITION AS A COUNCILMAN, I MUST OVERSEE THAT PROJECT, BUT I DON'T SUPPORT THE AMOUNT OF DEBT THAT WE CARRY WITH THE MASSIVE MUNICIPAL INFRASTRUCTURE PROJECTS THAT WE JUST PUT INTO PLACEAT THE SAME TIME. I THINK WE ARE FEELING SOME OF THE AND WILL CONTINUE OVER THE NEXT COUPLE OF YEARS .

>> THE ROAD PROJECTS, YOU THINK THAT WILL BE A PROBLEM TO PUSH

THOSE BACK? >> THE ROAD WILL HELP THE COMPANY FOR CITY HALL WE WILL HAVE TO AN ANSWER IS COUNCILMAN, WITH A SHOULD HAVE HAPPENED FIRST.

PEOPLE ARE ALWAYS COMPLAINING ABOUT THE ROADS ANDRIGHTLY SO .

IF YOU WANT 15 STAFF MEMBERS B THE COMPARABLE CITY , DO WE NEED CITY HALL TODAY? CAN WE GET CITYHALL IN FIVE

YEARS ? >> WE COULD HAVE DONE IT ALL, BUT WE DECIDED TO DROP YOU TAX RATE AT 5.9.

>> THE ANSWER TO THAT FOR ME, I WOULD GET VOTED OUT, I WILL DO

SO WITH MY HEAD I. >> CLARK WICKLIFFE: I'M NOT TALKING ABOUT INDICATED VOTED OUT, - - DECIDED TO NOT LISTEN TO YOU AND CUT TAXES TO 59 AND NOT LISTEN TO THE PROJECTS.

>> WE ARE GOING TO DO THE PROJECT, WE DON'T HAVE TO DO THEM ALL THIS YEAR OR NEXT YEAR.

IF GETTING A LOWER TAX RATE DELAYS SOME OF THESE PROJECTS TWO YEARS, I THINK THAT IS A PRETTY FAIR COMPROMISE.

>> WHAT IF ITENDS UP COSTING THEM $10 MILLION MORE ?

>> WE ARE ON A DOWNTURN NOW. >> WE WERE IN A DOWNTURN WITH COVID THAT LASTED 60 TO 90 DAYS AT BEST? I'M JUST MAKING SURE THAT WE HAVE A RESPONSE TO HOW WDS PROJECTS, OUR RESPONSES WE DECIDED TO NOT LISTEN TO YOUR QUOTE AND CUT THE TAX DOWN TO 500 IS ESSENTIALLY WHAT WE ARE

SAYING. >> DELAY, WE WILL DO.

IN 2008 WITH THE FIRST PART BOND AND IN 2008 WE PROMISED THE PARK, IT TOOK 18 YEARS AND $40 MILLION IN RESOURCES.

HOW DO WE DO ON THAT? >> I AGREE.

YOU KEEP SEEING DELAY, WILL COST US THAT MONEY.

>> I WAS SAY THEY WERE CONSIDERABLY MORE EFFECTIVE TO THAT. A TWO-YEAR DELAY TO STICK TO THE REVENUE, I AM OKAY WITH THAT.

>> RICHARD RENO: COUNSEL, IT IS APPROACHING 5:45.

>> WAYNE SIBLEY: CAN MAKE A QUICK STATEMENT?

>> RICHARD RENO: MAKE A QUICK. >> WAYNE SIBLEY: WALTERS TALKING ABOUT THE PEOPLE, THIS EVALUATION WITH THE SALARY RANGES, THE GET SIX PEOPLE DOING THE SAME THING.

WE LOOK AT THE SAME SALARY RANGE.

[01:45:02]

THAT IS, PEOPLE ASKED FOR. THEY DO NOT PUT US IN YOUR TO SAY NO, WE DON'T LIKE WHAT YOU SAID, WE ARE GOING TO CHANGE IT.HAT IS WHAT YOU ARE SAYING.

>> RICHARD RENO: THANK YOU ED. WHAT I'M HEARING, COUNSEL, I AM SURE YOU LET ME KNOW YOUR THOUGHTS BETWEEN NOW AND WHEN WE HAVE TO, I HEAR THAT WE ARE GOING TO HAVE ANOTHER WORKSHOP ON AUGUST 30. WE STILL HAVE SOME THINGS TO DECIDE. PLEASE LET ME KNOW YOUR FEELINGS. AT 5:46 THIS WORKSHOP STANDS

[Call to Order, Invocation, and Pledge of Allegiance.]

>> RICHARD RENO: GOOD EVENING. IT IS 6:012 TO AUGUST 23.

I CALLED THE SESSION OF THE THE LOTHIAN CITY COUNCIL TO ORDER.

LEADING US IN OUR IMPLICATION IS - - CLARK, YOU LEAD US IN THE PLEDGE. PUSH THE RED BUTTON THERE,

THANK YOU. >> HOLY FATHER, WE ARE HUNDRED HUMBLED BY YOUR PRESENCE AND THANK YOU FOR THE AFTERNOON PRAYER TO BE ABLE TO SPEAK WITH YOU.

GOD, I WANT TO LOOK AT THE CITY COUNCIL AS A THANK YOU FOR THE SERVICE LORD THANK YOU FOR BLESSING US WITH LEADERS TO LEAD OUR TOWN, TO MAKE TOUGH DECISIONS AND WORK TOGETHER SO WE CAN BECOME A BETTER PLACE, LORD.

I PRAY THAT YOU CONTINUE TO BE SOVEREIGN AND WE ACKNOWLEDGE YOUR SOVEREIGNTY WITH EVERYTHING WE DO IN OUR LIVES.

YOU WANT TO LIFT YOU UP IN HONOR YOU AND THANK YOU FOR WHAT YOU ARE BLESSED MIDLOTHIAN WITH.

I PRAY THAT YOU CONTINUE TO UTILIZE THIS TOWN TO BLESS THE COUNTY A NEW LIFE THIS COUNTY TO BLESS THE STATE HELP US TO ALWAYS LOOK TO YOU FOR GUIDANCE AND WISDOM, PLEASE GIVE ADDITIONAL WISDOM TO THE COUNCIL TONIGHT.

GOD, THANK YOU SO MUCH FOR YOUR SON JESUS CHRIST, AND HIS NAME WE PRAY. AMEN.

>> CLARK WICKLIFFE: I PLEDGE ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA. AND TO THE REPUBLIC FOR WHICH IT STANDS, ONE NATION UNDER GOD INDIVISIBLE WITH LIBERTY AND JUSTICE FOR ALL. EYE ON THE TEXAS FLIGHT, PLEDGE

ALLEGIANCE TO THE THROUGH GOD. >> RICHARD RENO: ITEM 2022 57 CITIZENS TO BE HEARD, COUNSEL INVITE CITIZENS SPEAK OVER THE ITEM ON THE AGENDA. WE WILL BE GIVEN THREE MINUTES,

[CONSENT AGENDA]

>> WALTER DARRACH: I MOVE THAT WE REMOVE ITEM 2022 360 FOR

CLARIFICATION. >> RICHARD RENO: 2022 360 WILL BE REMOVED TO THE REGULAR AGENDA.

A MOTION TO BE APPROVED THE SECOND ITEM, PLEASE VOTE.

THE CONSENT AGENDA IS APPROVED EXCEPT FOR ITEM 2022 Ã360.

[2022-360]

INVESTMENT POLICIES. >> ANNA HAMMONDS: I WANTED TO

[01:50:08]

THE CONSULTANTDID NOT GIVE US THE CORRECT LIST .

SO THAT LIST HAS BEEN UPDATED. EVERYTHING IN THE INVESTMENT POLICY IS EXACTLY THE SAME, IT IS JUST THE BROKER LIST ITSELF.

THEY REVIEW THAT EVERY YEAR AND CHANGE THAT.

THAT WAS THE REASON IT IS COMING BACK.

>> SO NO ADDITIONAL CHANGES TO THE POLICIES?

>> NO, IT IS THATONE ATTACHMENT TO HAVE THE BROKER LIST .

>> THANK YOU. >> AND MAKE AMOTION TO APPROVE.

>> I SECOND . >> RICHARD RENO: THE MOTION TO APPROVE IS SECONDED, PLEASE VOTE.

ITEM 360 IS APPROVED SEVEN Ã ZERO.

[2022-362]

HAVE ONE SPEAKER, LISA HEALY. >> SPEAKER: HI, LISA HEALY, 418 MILLIGAN DRIVE. THANK YOU FOR THE TIME TONIGHT.

TYPICALLY, TRY TO LOOK AT YOU GUYS, BUT TONIGHT I WILL READ BECAUSE I HAVE A COUPLE OF THINGS TOGETHER AND I WANT TO MAKE SURE I DO. IN MY TIME ALLOTTED.

PLEASE UNDERSTAND, I AM NOT ACCUSING ANYONE OF NEFARIOUS ACTS, THIS JUST FACTUAL AND WHAT I HAVE BEEN EXPERIENCING THROUGH THE BUDGET PROCESS. DID YOU KNOW THAT THIS YEAR'S BUDGET RAISES TAXES BY $5 MILLION? WHICH IS A 14.2% INCREASE IN BUDGETS.

THE AMOUNT, 1.7 MILLION IS REVENUE RAISED FROM THE NEW PROPERTY ADDED TO THE TAX ROLL THIS YEAR.

DID YOU KNOW, THAT THE PROPOSED TAX RATE IS .00 ZERO .000003 LESS THAN THE BORDER TAX RATE. IF WE WERE TO DO THE 6.75 TAX RATE, HE WOULD HAVE TO VOTE ON IT.

THAT TAX RATE WAS BASED ON A LOWER ASSESSED VALUE OF PROPERTY. JUST WANTED TO CLARIFY THAT FOR YOU. PERSONALLY, I THINK THE CITY MANAGER HAS BEEN A DISSERVICE TO YOU THE CITY COUNCIL, AND TO US AS CITIZENS. IT IS FOUR YEARS SINCE THE TAX REFORM WAS PUT INTO PLACE AND THE CITY MANAGER - - NO NEW REVENUE RATE IS SUPPLIED. HIS RESPONSIBILITY TO GIVE YOU THE CORRECT INFORMATION AND PRESENT IT IN A CLEAR AND CONCISE MANNER. FOR EXAMPLE, HE SHOULD HAVE PRESIDED A TABLE WITH DIFFERENT SCENARIOS AND THE IMPACT THAT WOULD HAVE ON THE BUDGET ON BOTH SIDES, MNO AND THE DEBT SERVICE I. THAT WAS NOT DONE. A LOT OF TIMES IT IS DOING QUICK CALCULATIONS, AND I DO NOT KNOW THAT IS TRANSPARENT OR FAIR TO YOU AS THE CITY COUNCIL TO MAKE THE BEST DECISIONS FOR THE CITIZENS OF OUR CITY. WHETHER THE MAYOR BELIEVES IT OR NOT, WE ARE IN A RECESSION. PEOPLE ARE LOSING THEIR JOBS AND HAVING TO CHOOSE BETWEEN GROCERIES OR GAS.

YES, HERE IT MIDLOTHIAN. ALAN FROM MCDC TOLD ME THE OTHER NIGHT, THE NUMBER OF FREE SCHOOL SUPPLIES WENT FROM 700 TO OVER 2600 STUDENTS. HERE IN MIDLOTHIAN, HE TOLD ME THAT THE MEETING THE OTHER NIGHT.

I WAS AT WALMART YESTERDAY, THERE WAS A YOUNG COUPLE IN FRONT OF ME WITH YOUNG SON AND THE BABY ON THE WAY.

THEY CANNOT PAY THEIR $51 GROCERY BILL.

I AM FOR YOU TO ASK THE CITY MANAGER TO BRING YOU A BUDGET AT THE NO NEW REVENUE RATE WITH ALL THE IMPLICATIONS THAT

[01:55:05]

>> CHRIS: MAYOR, AS WE JUST DISCUSSED IN THE WORKSHOP, I THINK THAT THE PRIMARY THING WE NEED TO FINISH IS A DECISION ON WHAT THE TOTAL TAX RATE WILL BE THAT THE COUNCIL WANTS AND WHERE THAT IS COMING FROM, THE MNO, DEBT SERVICE RATE ORBOTH .

HE WILL SEE THE DECISIONS POSITIONS THAT WERE ADDED PUT BACK IN FROM THE CITY COUNCIL AND SOME OF THE OTHER MINOR CHANGES, LIKE THEREDUCTION OF THE ZONING ORDINANCE .

>> RICHARD RENO: COUNSEL, DO YOU WANT TO ASK QUESTIONS AND HAVE A DISCUSSION? OR WOULD YOU PREFER TO CLOSE THE OPENING CORRECT DISCUSSION? IS THERE A PREFERENCE HERE? WE HAVE A MOTION TO CLOSE PUBLIC HEARING, DO WE HAVE A SECOND? PLEASE VOTE.

THE PUBLIC HEARING WAS CLOSED. I HAVE HEARD THREE NUMBERS AND THEN, TO GIVE DIRECTION, IF THE REDUCTION IS TO COME FROM SERVICES, BOTH OR MNO, WHAT I HAVE HEARD IS SIGNIFICANT DIGITS, .663, SOMETHING IN THE NEIGHBORHOOD OF .5 SOMETHING.

WE NEED TO MOVE WILL BE DIFFERENT DIRECTION.

WE ARE NOT VOTING PER SE, BUT WE WILL VOTE FOR A CLEAR DIRECTION . WITH THAT, I WILL OPEN IT UP FOR DISCUSSION. WALTER?

>> WALTER DARRACH: MY ONLY QUESTION IS WHAT RESIDENT HEALY SUGGESTED, IS THAT POSSIBLE? CAN YOU NOT PRODUCE AN EXAMPLE AT 663 AND ITS IMPACT AT 599 HAD ITS IMPACT? FORGIVE ME ON THE BUDGETING AND POSSIBLE SOLUTIONS TO EACH?

>> RICHARD RENO: ALL ON THE DEBT SIDE OR BOTH?

>> WALTER DARRACH: BOTH. >> WALTER DARRACH: WE CAN TALK ABOUT IT, IF YOU TAKE 1.2 CENTS AUTHORITATIVEDEFICIT TO 3.2 .

THAT IS OBVIOUSLY LEAVING IN THE POSITIONS THAT WERE PUT BACK IN AT THE LAST WORKSHOP. IF YOU TAKE THEM OUT, A COAT THE 2.6. WE CAN SHOW YOU WHAT THAT WILL LOOK LIKE. I'VE TALKED ABOUT EARLIER, AT 5.9, HE WOULD BE INVERTED, THEN INCREASED TO A CERTAIN AMOUNT AND LEVEL OFF AS OPPOSED TO WHAT YOU HAVE NOW IS A HIGHER CAME IN THE FIRST COUPLE OF YEARS, THEN TAPERS DOWN .

IF IT'S IN THE MIDDLE, SAY 65, THAT IS TO BE SOMETHING IN THE MIDDLE. IT IS THOUGHT TO BE HIGHER IN THE FIRST COUPLE OF YEARS, THEN TAPERING DOWN.

WE HAVE RUN SOME OF THE SCENARIOS.

[02:00:02]

WAYNE? >> WAYNE SIBLEY: THAT IS NOT TO MAKE THE FINAL COST OF THIS DEBT GREATER BY $7 MILLION, IS

THAT CORRECT? >> RICHARD RENO: DEPENDING ON WHAT IS RAISE. YOU PAY LESS PRINCIPAL AT FIRST, THEN PAY MORE INTEREST COST WILL BE SOME RANGE WE ARE PAYING MORE INTEREST COST. WHAT IMPACT WILL THAT HAVE ON THE TIMING OF THE THREE MAJOR PROJECTS?

>> CHRIS: WHEN YOU'RE TALKING ABOUT THE THREE MAJOR? THE THREE WE TALKED ABOUT, WHILE MICRO, THE PUBLIC SAFETY CENTER AND CITY HALL, THOSE WOULD STAY ON SCHEDULE.

YOU ARE JUST STRUCTURING THE DEBT DIFFERENTLY.

>> CHRIS: THE TIMING IS NOT INFECTED?

>> THE TIMING COULD BE PUSHED OUT OF THE RATE IS REALLYLOW .

ANNA? >> ANNA HAMMONDS: IN YOUR YOU NUMBERS, YOU ESTIMATE OUT THE SPECIFIC PROJECTS HE'S TALKING ABOUT, THE TIMELINE FROM APPROVAL TO THE ESTIMATED PROJECT START? OR IS THAT TOO RELATIVE? I WOULD LIKE TO KNOW THE DELAY ON IT.

>> CHRIS: AS MENTIONED EARLIER, GOING TO BE NO NEW REVENUE RATE PUSHED OUT A YEAR, MAYBE TWO. FROM A ISSUE ON 2020 4225 OR 2 , THAT IS NOT ANSWER WHEN THE PROJECT WOULD GET STARTED, BUT THAT IS HOW YOU WOULD ISSUE BONDS.

IT WOULD BE AFTER THAT. A LOT OF FACTORS, GROWTH RATE, ETC.. IT COULD HAPPEN SOONER, COULD HAPPEN LATER. BEFORE IN THE END, I WILL LOOK TO THE ROADS, ESTIMATED ROADS A PART OF THAT BOND AND HOW MUCH WE ARE DELAYING ROAD IMPROVEMENTS IF IT WERE TO GO DOWN THAT ROUTE. ARE YOU SAYING THAT IT IS

OBVIOUSLY ESTIMATIONS. >> CHRIS: LIMITED THE BOND ELECTIONS IN 2021, WE HAD THE ASSUMPTIONS OF 5%.

IF YOU LOOK AT LAST YEAR'S OVERALL INCREASE IN VALUE, IT ONE OF 3.6. OBVIOUSLY THIS YEAR, IT IS GREATLY EXCEEDING THAT. YOU HAVE TO GET THOSE, WE WILL HAVE TO MAKE SOME ASSUMPTIONS ON WHAT THOSE GREAT GROWTH

RATES OVER TIME ARE. >> JUSTIN COFFMAN: QUICK QUESTION FOR DEBT ISSUANCE CHRIS, IS IT MORE OR LESS EXPENSIVE THAN THE PREVIOUS 24 MONTHS?

>> CHRIS: IT HAS BEEN GOING UP RECENTLY, THE COSTS.

FROM MY UNDERSTANDING THERE HAS BEEN AN INVERTED YIELD CURVE BECAUSE THEY KEEP RAISING RATES TOWARDS COUNTER INFLATION BUT CURES TWO, THREE AND FOUR COME BACK UP CLOSE TO THE 10 YEAR.

>> I WILL GO BRIEFLY, THE ACTIONS OF THE FEATHER TO SLOW INFLATION AND REDUCE INFLATION WHICH SHOULD MAKE DEBT ISSUANCE FOR US CHEAPER. IF WE LET THAT PLAY OUT, IT MAY

END UP SAVING US THE TIME. >> CHRIS: I WISH I HAD THE.

>> POTENTIALLY? >> CHRIS: POTENTIALLY, YES.

>> THANK YOU. >> JUSTIN COFFMAN: > RICHARD RENO: CHRIS, WHEN CAN YOU MAKE THE INFORMATION AVAILABLE THAT

THE COUNCILMAN HAS REQUESTED? >> CHRIS: WE COULDHAVE A REALLY QUICK . WE WILL RUN ONE AT 66, 31, 59.

>> RICHARD RENO: TOMORROW OR NEXT DAY?

[02:05:02]

>> CHRIS: YES. >> RICHARD RENO: WITH THAT BEING SAID, HOW DO YOU WISH TO PROCEED WITH THE INFORMATION? COUNCILMAN? DO WE COME BACK AS A BODY AND

DISCUSS IT? >> I WOULD THINK PROBABLY FOR

TRANSPARENCY SAY, YES. >> RICHARD RENO: THAT WOULD BE

NEXT TUESDAY? >> WHAT IS PUBLIC HEARING, PARTICULAR ITEM,THE PUBLIC HEARING ON A MAX RATE OF 663, CORRECT ? I'M JUST SAYING FOR THIS ITEM, THERE IS NO ACTION BECAUSE IT IS ONLY A PUBLIC HEARING FOR A MAX RATE OF 663. THEREFORE, WE CAN JUST MOVE ON

TO THE NEXT DATE. >> CHRIS: IT IS JUST FOR THE BUDGET IN GENERAL. ANY QUESTIONS OR DISCUSSION ABOUT THE BUDGET IN GENERAL, WE CAN DISCUSS.

>> RICHARD RENO: CHRIS, DO YOU NEED DIRECTION FROM COUNSEL AS TO THE TAX RATES SO YOU CAN PREPARE FOR SEPTEMBER 6?

>> CHRIS: YES, PRIOR TO THAT. WE WILL BRING THE DEBT ISSUANCE BACK IN SEPTEMBER 6, BUT WE NEED TO KNOW WHERE COUNSEL WANTS TO BE SO YOU CAN STRUCTURE THAT BEFORE WE SEND IT OUT TO THE MARKET TO GET THOSE NUMBERS.

>> RICHARD RENO: WE ARE NOT VOTING ON THAT BUT WE ARE GIVING DIRECTION TO COUNSEL AND THAT IS A VERY SERIOUS THING.

TO DO THAT, THEY NEED FURTHER INFORMATION RELATIVE ON HOW TO

STRUCTURE THE DEATH DEBT. >> WALTER DARRACH: FURTHER INFORMATION, HOW? ARE YOU ASKING US?

>> RICHARD RENO: AGAIN, MY UNDERSTANDING CHRIS, CHRIS NEEDS A TAX RATE, THIS IS VERY SERIOUS, HE NEEDS DIRECTION ON THE TAX RATE SO THAT YOU COMPARE THEDOCUMENTS FOR SEPTEMBER 6 . THE PRIMARY THING THAT IS THE

ISSUANCE OF DEBT. >> WALTER DARRACH: NEXT QUESTION FOR KEVIN, IF WE DELAY THIS TODAY UNTIL WE HAVE THE PICTURE IN WRITING, SO TO SPEAK OF THE THREE TAX RATES PROPOSE , WHAT DOES THAT DO FOR THE SEPTEMBER 6 TIMELINE?

OR DOES IT DO ANYTHING? >> RICHARD RENO: IF HE GIVES US THE ANSWER TO YOUR QUESTION, WE CAN COME BACK AND HAVE A WORKSHOP AND SET IT ON THE 30T .

[INAUDIBLE]. >> NO OFFICIAL ACTION SHOULD BE TAKING UNTIL WE ANNOUNCE THE PUBLIC HEARING DATES FOR THE BUDGET. WE CAN MOVE ON AND HE CAN GIVE

US THAT INFORMATION, RIGHT? >> CHRIS: WE CAN COME UP WHICH NEED TO BE IN ADVANCE OF SEPTEMBER 6. IF WE DON'T MAKE THAT COME UP WILL PUSH THE ADOPTIONBACK TO THE 13TH .

WE NEED TO REALLY CHECK WITH OUR BOND FOLKS AND SEE HOW LONG IN ADVANCE THEY NEED TO HAVE THIS DECISION THEY COULD GET.

I DON'T WANT TO SAY COME IN ON TUESDAY, GIVE THEM A RATE AND THAT GIVES THEM A WEEK OR LESS TO GO TO THE MARKET.

THEY MAY BE ABLE TO DO THAT, BUT I WANT TO CONFIRM THAT BEFORE WE SAY YES. OBVIOUSLY BECAUSE OF SOME POSTING, THE 30TH IS PROBABLY THE MOST REALISTIC TIME TO DO OUR NOTICE AND GET OUR POSTING TO THE AGENDA DONE.

AT THIS POINT, THE EARLIEST THAT WE CAN MEET IS ON SATURDA

. >> RICHARD RENO: COMMENTS FROM

COUNSEL, PLEASE? >> MY ONLY COMMENT IS THAT I FEEL LIKE WE ARE STILL ON TRACK.

ONCE WE GET THOSE NUMBERS, WE CAN DISCUSS THEM FURTHER.

UNTIL THEN, THE MAX RATE HAS ALREADY BEEN SAID, NOACTION IS TO BE TAKEN . I FEEL LIKE WE ARE IN A GOOD

[02:10:01]

PLACE. >> RICHARD RENO: THE INFORMATION WILL BE PREPARED AND WE WILL COMEBACK HERE ON THE 30TH FOR DISCUSSION . BEYOND THAT, WE DON'T HAVE TO

DO ANYTHING AT THIS POINT. >> ANNA HAMMONDS: THE ONLY THING I WOULD ASK IS THAT YOU DO PUBLICLY ANNOUNCE THAT YOU ARE GOING TO TAKE BOTH THE BUDGET AND TAX RATE" TO ADOPT THE BUDGET AND TAX RATE ON SEPTEMBER 6. IF YOU DON'T DO THAT NOW, WE WILL BE ABLE TO TAKE THAT ACTION ON SEPTEMBER , YOU COULD ALWAYS DECIDE NOT TO DO WITH THAT DAY AND THEN COME BACK AND WE CAN MOVE IT TO THE 13TH OR SO.

JUST LIKE IT SAYS IN THE RECOMMENDATION, I WOULD LIKE FOR YOU ALL TO PUBLICLY ANNOUNCE THAT YOU ARE GOING TO

ADDRESS THOSE. >> RICHARD RENO: ARE YOU ARE COMFORTABLE WITH MAKING THE STATEMENT THAT THE TAX RATE AND THE BUDGET WILL BE SET ON SEPTEMBER 6 OF THE PUBLIC HEARING? BEYOND THAT, WE ARE TAKING NO ACTION. WITH THAT BEING SAID, WE WILL MOVE ON TO THE REGULAR AGENDA. ITEM 2022 363, CONSIDER ASK FOR

[2022-363]

>> SPEAKER: GOOD EVENING MAYOR AND COUNCIL.

IT IS GOOD TO BE WITH EVERYONE TONIGHT.

THIS IS AN ITEM THAT IS BEING BROUGHT FORWARD BY THE MIDLOTHIAN DEVELOPMENT. CAN YOU SET THIS ITEM FOR MY OFFICE TO REMIND THE BOARD AS I'VE SAID IN OTHER WAYS, THE MIDLOTHIAN ECONOMIC DEVELOPMENT IS A SEPARATE ENTITYFROM THE CITY . THERE IS DIRECT OVERSIGHT WITH THE CITY AND OUR BOARD, COUNSEL PRIMARILY HAVE THE ABILITY TO APPOINT THE BOARD MEMBERS, COUNSEL ALSO HAS THE ABILITY TO APPROVE ALL OF OUR PROGRAMS AND EXPENDITURES.

WITH THAT SAID, THOUGH THERE IS A SEPARATE, SEPARATION BETWEEN THE TWO, IT IS OUR BOARD'S DESIRE TO ALWAYS BE UNITED WITH THE COUNCIL AND THE CITY IN EVERYTHING THAT WE DO.

OUR PURPOSE IS TO HELP THE CITY IN GROWING DEVELOPMENT.

WITH THAT SAID, THERE ARE COUPLE OF THINGS THAT WE HAVE PUT FORWARD IN OUR BYLAWS AND WHO SEEK THE ADDITIONAL APPROVALOF THE CITY COUNCIL TO DO SO .

AGAIN, WE ARE TAKING ADDITIONAL STEPS TO ENSURE ALIGNMENT BETWEEN OUR BOARD AND BETWEEN THE CITY COUNCIL.

I WANTED TO REVIEW SOME OF THE CHANGE THAT WE HAVE TODAY AND INCLUDED IN THE PACKET IS A REDLINE SO YOU CAN SEE THEM.

IT DOES CHANGE SOME OF THE REGISTRATION INFORMATION WHICH IS A FORMAL REPORTING SYSTEM. ONE OF THE BIG CHANGES YOU SEE THROUGHOUT THE TITLE ACTUALLY HAS TO DO WITH THE CHANGE MY TITLE FROM PRESIDENT AND CEO JUST CEO.

THAT GOES TO ALIGN WITH THEIR OFFICER TITLES WHICH ARE CURRENTLY CHAIR, VICE CHAIR, SECRETARY TREASURER.

OUR INTENTION IS TO ALIGN WITH THE STATE STATUTE THAT OUTLINES THE PRESIDENT OF THE CHAIR, SOME OF THE OTHER CHANGES, WE HAVE AMENDED SOME OF THE DATES THAT WE ARE REQUIRED TO COME INTO REPORTING TO COUNSEL IN OUR BUDGETING TO BADGER BETTER ALIGN THE BUDGET PROCESS WE ARE GOING THROUGH.

ALSO, OUR PRESENTATION OF THE ANNUAL PLAN THAT PUTS IT AFTER THE FISCAL YEAR SO WE CAN REPORT EVERYTHING AS IT IS COMPLETED. THE LAST CHANGES THE ONE THAT REALLY IS POTENTIALLY THE MOST SUBSTANTIAL AND THAT CURRENTLY, UNDER SECTION 8 OF THE MVD BYLAWS, AND ED HAS ELECTED ADDITIONAL REQUIREMENTS TO GO ABOVE AND BEYOND THE ADDITIONAL REQUIREMENTS ARE YOUR ADOPTED ALL THE CITY'S POLICIES.

THAT CREATES ADDITIONAL POLICIES FOR US AS A RELATES PRIMARILY TO PURCHASING, BUT THERE ARE OTHER AREAS WHERE THERE ARE DIFFERENCES IN OUR ORGANIZATIONS FROM CITY

OPERATIONS. >> WHICH SUBSECTION, WHICH

ARTICLE? >> THE VERY LAST, PAGE 12 OF THE VERY END. I JUST REALIZE THAT THERE ARE MULTIPLE SECTIONS. OUR INTENTION WOULD BE THAT WE

[02:15:08]

WITH THAT, ARE THERE ANY QUESTIONS FROM THE COUNCIL?

>> I HAVE A COUPLE OF EASY ONES IF I MAY.

I SEE YOU GUYS HAVE STRUCK OUT THE THREE SIGNIFICANT UNEXCUSED

ABSENCES, WHY IS THAT? >> SPEAKER: YOU GOT THE ONE I DID NOT MENTION. PRESIDENT OUTLINING A SPECIFIC PROCESS, WE POINT TO THE CITY'S GOVERNANCE POLICY.

IF THAT WERE CHANGED, IT WOULD NOT REQUIRE A CHANGE TO OUR

BYLAWS. >> YOU GUYS OBSTRUCT THE CITY'S FINANCIAL - - LEAVE THE MAYOR AND CITY MANAGER LEAVE IN PLACE, WHY THE CITY MANAGER OR DIRECTOR?

>> IT INCLUDES THE CITY MANAGER DESIGNEE.

>> SO YOU WERE JUST CLEANING UP THE LANGUAGE?

OKAY, THANK YOU. >> I AM A LITTLE BIT CONFUSED BUT THE THREE CONSECUTIVE UNAPPROVED ABSENCES, IS THAT IN ALIGNMENT WITH WHAT OTHER BOARDS ARE DOING AS WELL?

>> SPEAKER: OUR INTENTION, RATHER THAN HAVING A VERY SPECIFIC REQUIREMENT OUTLINED IN THE BYLAWS, INSTEAD HE WOULD JUST POINT TO THE DOCUMENT THAT THE CITY USES.

THE STATE LAW, THE ONLY REQUIREMENT AS IT RELATES TO STATE LAW AND OUR BOARD IS THAT OUR BOARD IS APPOINTED BY CITY COUNCIL. THERE IS NO PROCESS THAT OUTLINES US. IT IS AT THE DISCRETION OF YOU

IN THE CITY COUNCIL. >> SPEAKER: LET ME CLARIFY LITTLE BIT, WHAT HAPPENED THAT IS HAPPENING TONIGHT, EVERY TIME I BYLAWS CHANGED, YOU HAVE TO FORMALIZE IT TO THE MED BOARD AND CITY COUNCIL FOR APPROVAL WERE RESTS WITH THE REGULAR BOARD OR COMMISSION, ALL THEY DO IS THAT YOUR POLICIES WITH GOVERNING BOARDS AND COMMISSION WHICH IS A ONE-TIME BOAT. IT'S A LOT OF EXTRA WORK AND AS LONG AS THE BYLAWS ARE IN ALIGNMENT, EAGER NOT TO GO THROUGH THAT FORMAL PROCESS EACH TIME WITH THE DOUBLE-ACTION OF EACH BOARD. IT SAVES TIME AND RESOURCES.

>> I ALWAYS CARRY WITH ME, BUT THE ONE I DON'T HAVE IS THE GOVERNANCE POLICY. SO WE APPROVE THIS AS PRESENTED, WHEREVER WE UPDATED TO WE AUTOMATICALLY FOLLOW.

>> IN PART, THE INTENTION THERE IS THAT OUR BOARD IS SELECTED BY YOU PERIOD. HOWEVER YOU CHOOSE TO DO THAT, YOU HAVE THAT COMPLETE AUTHORITY TO SELECT THE BOARD

ANYWAY YOU CHOOSE. >> RICHARD RENO: THIS SIMPLIFIES, DOES NOT REMOVE THE DILIGENCE OF THE COUNCIL, DOES NOT CHANGE THAT COLLEGE IS CLEANING THINGS UP.

THE FIRST TIME I SAW THIS, I HAVE A LOT OF QUESTIONS.

>> SPEAKER: I MAKE A MOTION TO APPROVE AS PRESENTED.

>> RICHARD RENO: PROMOTION APPROVED AS PRESENTED AND SECONDED, PLEASE VOTE. ITEM PASSES SEVEN ÃZERO, KYLE,

[2022-364]

CONSIDER AND ACT UPON AUTHORIZING CITY MANAGER TO ENTER AN AGREEMENT FOR FURNISHING MEMBRANE FILTRATION EQUIPMENT FOR THE AUGER WATER TREATMENT PLANT EXPANSION THE 24 MILLION GALLONS PER DAY PROJECT WITH FILMTEC CORPORATION DUPONT WATER SOLUTIONS WITH AN AMOUNT NOT TO

EXCEED $4,630,000. >> SPEAKER: GOOD EVENING COUNSEL. THIS IS PART OF THE EXPANSION

[02:20:03]

WE ARE RIGHT NOW OUT FOR COMPETITIVE PROPOSAL AND WILL BE RECEIVING THOSE ON SEPTEMBER 15.

AN AVERAGE NUMBER ONE BLOCK IN PRICING ON THE MEMBRANE COMPONENT WHICH IS VITAL TO THE EXPANSION AS WELL AS START THE PROCESS SO WE CAN GET A COUPLE OF MONTHS AHEAD, OUR INTENT IS TO TRY TO HAVE THE EXPANSION COMPLETED PRIOR TO THE SUMMER OF 2024.WE ARE LOOKING TO ENTER THIS AGREEMENT TO GO AHEAD AND PREPURCHASE THE MEMORY COMPONENTS NEEDED FOR THE EXPANSION. THAT WILL BE UP TO 12 MILLION FOR THE PLANNED SIDE OF THINGS. IT WOULD ALLOW FOR THE SHOP DRAWINGS, ACTUAL REVIEWS AND THOSE TYPES OF THINGS TO TAKE PLACE. ONCE WE HAVE A CONTRACTOR THAT IS AWARDED TO THIS PROJECT, WE COULD DESIGN THIS CONTRACT TO THEM IN REGARDS TO ANY PAYMENT YET TO MAKE THROUGH THE CONTRACT. THE CONTRACT BE RESPONSIBLE FOR THE INSTALLATION. THIS IS A BUDGETED ITEM SO IT IS PART OF THE EXPANSION AND UTILITY FUND.

WE HAVE MONEY BUDGETED TO PURCHASE THE MEMBRANES.

WITH THAT, I WOULD BE HAPPY TO ANSWER ANY QUESTIONS THAT THE

COUNCIL MAY HAVE. >> THIS PUTS THE BUILDING AT

CAPACITY, RIGHT? >> YES, THE INTENT WHICH IS THAT WE ARE ALWAYS PLAYING FOR ITS ONCE WE GET PAST THIS PART, YOU HAVE TO BUILD ANOTHER MEMBRANE TO THE EXISTING BUILDING. LOOKING AT THE ADMIN SIDE OF IT, WE WOULD NEED THE MEMBRANE COMPONENT, YES, SIR.

>> MOVED TO APPROVE. >> SECOND.

[2022-365]

>> RICHARD RENO: ITEM PASSES SEVEN ÃZERO.

ITEM 2022 Ã365, CONSIDER AND ACT UPON THE COMPENSATION AND BENEFITS STUDY AND ANALYSIS RECOMMENDATIONS FOR THE CITY OF MIDLOTHIAN PREPARED FOR BY RAY ASSOCIATES INCORPORATED INCLUDING THE FINAL 2022 Ã2023 PAY PLANS AND RECOMMENDATION

BENEFIT ADJUSTMENTS. >> SPEAKER: THANK YOU COUNSEL.

SOMETHING YOU'VE SEEN A FEW TIMES NOW.

WE TALKED ABOUT IT IN WORKSHOP .

HE DID PROPOSE THAT THE CITY ORIGINALLY, THIS COMPENSATION PLAN LOOKED AT A 50 PERCENTILE. IT WOULD BASICALLY BE AT AN AVERAGE OF THE COMPARISON CITIES ON PAY.

HE DID ASK US TO GO BACK AND CALCULATE THAT IN THE 60TH PERCENTILE, WHICH IS VERY GENEROUS AND CERTAINLY APPRECIATED BY THE EMPLOYEES. THAT PARTICULAR ITEM, IF FULLY IMPLEMENTED, AND IS INCLUDED IN THEBUDGET PROPOSAL SO FAR THIS YEAR , WOULD COST $2,086,754 ESTIMATED AND 10.66% INCREASE IN THE BUDGET. I KNOW YOU TALKED ABOUT A 15% INCREASE THAT WE HAVE IN THE BUDGET, THE DELTA THERE IS 4% INCREASE, SHOULD EMPLOYEES EARN THAT.

I WANT TO CLARIFY THAT SO IT IS NOT CONFUSING TO ANYONE WHO IS READING THE AGENDA ITEMS. THE BENEFIT SIDE OF THIS IN ADDITION TO THE SALARY ALSO HAD A FEW RECOMMENDATIONS.

I WILL QUICKLY GO THROUGH THOSE.

ONE IS TO REDUCE THE EMPLOYEE PAY DEDUCTIBLES A MAXIMUM OUT-OF-POCKET FOR OUR BASE PPO PLAN.

WE HAVE ALREADY SAID THAT FOR THE NEXT YEAR AND THOSE PLANS ARE IN PLACE. WE ARE DOING OPEN ENROLLMENT, SO THAT IS SOMETHING WE CAN ADDRESS NEXT YEAR AND SEE IF IT IS VIABLE FOR US TO MAKE THAT CHANGE.

THERE IS ALSO RECOMMENDATION TO INCREASE THE NUMBER OF SICK LEAVE HOURS AND TO THE MEDIUM AND MARKET.

THAT WILL RESULT IN AN ADDITIONAL 40 HOURS OF SICK LEAVEPER YEAR . THAT IS FAIRLY DIFFICULT TO EVALUATE HOW MUCH THAT MIGHT COST BECAUSE IT WILL DEPEND ON EACH EMPLOYEES SITUATION AND WHETHER OR NOT THEY TAKE THAT SICK LEAVE. I DO NOT PUT AN ESTIMATE AND FOR THAT. THE THIRD ITEM IS BASICALLY DOUBLING THE VACATION LIKELY CARRIED OVER BY EMPLOYEES.

THE AVERAGE WAS SIGNIFICANTLY HIGHER THAN WHAT THE CITY ALLOWS. SO AGAIN, THAT IS ONE OF THOSE THINGS WHERE I EVENTUALLY, SOMEWHERE DOWN THE LINE WHEN AN EMPLOYEE RETIRES, IT MIGHT HAVE A FINANCIAL IMPACT, BUT ON THE CURRENT BUDGET, THERE IS NO WAY TO ESTIMATE WHAT THAT IS ON THE

[02:25:03]

IT ALSO ADDS A WASTEWATER CLASS I CERTIFICATION.

WE HAVE THE HIGHER LEVEL CERTIFICATIONS FORWASTEWATER .

IF I TOOK AN AVERAGE OF FOUR EMPLOYEES THAT WERE FAIRLY NEW AND DID NOT HAVE THAT, I AM ESTIMATING THAT THE COST THAT WOULD BE $1200 A YEAR, SO THAT IS VERY MINOR TO THE BUDGET.

THERE WAS ANOTHER CONSIDERATION TO INCREASE CURRENT AUTO ALLOWANCES AND EXPAND THOSE TO ALL DEPARTMENT HEADS.

THAT SELECTION HAS BEEN MADE BY THE CITY MANAGERS WHO WOULD RECEIVE THAT. IT IS PRIMARILY THOSE WHO DO NOT HAVE A CITY VEHICLE THAT THEY ARE CURRENTLY DRIVING.

THAT WITH INCREASING ONE AND ADDING OTHERS WOULD BE ABOUT $22,200 PER YEAR TOTAL. THE FINAL ONE THAT WAS PROPOSED IS LOOKING AT THE NUMBER OF VISITS THAT AN EMPLOYEE CAN HAVE THE EMPLOYEE ASSISTANCE PROGRAM FOR COUNSELING.

THAT WAS RECOMMENDED THAT THE INCREASE FROM 3 TO 6 AGAIN, THAT IS SOMETHING THAT IS ALREADY IN OUR BENEFIT PLAN.

YOU WILL HAVE TO ADDRESS THAT NEXT YEAR AND SEE WHAT THE ADDITIONAL COST MIGHT BE. SO THE TOTAL ESTIMATED COST AS PRESENTED AS BEST AS WE CAN RIGHT NOW IS $2,110,000 $154.

WITH THAT, I WILL BE GLAD TO ANSWER ANY QUESTIONS YOU MIGHT HAVE. THE FACT THAT I UNDERSTAND CORRECTLY THAT CERTAIN DEPARTMENT HAS TAKEN THE VEHICLE NOW AND CERTAIN DEPARTMENT HEADS DON'T BUT WE ARE GOING TO COMPENSATE THEM AS IF THEY DID ESSENTIALLY?

>> SPEAKER: GIVE THEM A SET AMOUNT, THAT IS WHAT MOST CITIES DO. SOME GIVEN ADDITIONAL COMPENSATIONBASICALLY AS A CAR ALLOWANCE , BUT THE DECISION WAS MADE AND CHRIS CAN PROBABLY EXPLAIN IT BETTER THAN ME, BUT THE DECISION WAS MADE THAT IF THE DIRECTOR HAD A CITY VEHICLE FOR RESPONSE PURPOSES OR WHATEVER, THAT IF THEY DROVE EVERY DAY THAT THEY WOULD NOT RECEIVE THAT.

>> WALTER DARRACH: UNDERSTOOD. I UNDERSTAND THE DIRECTOR LEVEL THAT HAS A CITY VEHICLE OR WORKS IN THE FIELD, BUT I DON'T SEE THE CORRELATION WITH THE DEPARTMENT HEAD JUST COME TO

CITY HALL LIKE EVERYONE ELSE. >> CHRIS: IS ANOTHER COMPENSATION PACKAGE THAT WAS FOUND LIMITED THE STUDY.

SOME OF THOSE DIRECTORS DO, EVEN THOUGH IT WILL TAKE PLANNING DIRECTOR, WE HAVE ASKED THAT THEY GET OUT A

LITTLE MORE. >> WALTER DARRACH: HOW ABOUT FINANCE DIRECTOR, DO YOU LEAVE SITE OFTEN?

>> SPEAKER: I LEAVE FOR MEETING SOME IF THAT IS ABOUT IT.

>> CHRIS: IT WOULD COMPENSATE FOR THAT SAID HAVING TO DO MILEAGE . IT'S A PART OF THE COMPENSATION PACKAGE. WE DID A STUDY AND FOUND THAT OTHER COMMUNITIES WERE OFFERING THIS.

>> RICHARD RENO: ANY OTHER COMMENTS OR QUESTIONS?

>> I MOVED TO APPROVE. >> SECONDED.

>> RICHARD RENO: THE ITEM PASSES SEVEN ÃZERO, THANK YOU

[2022-366 ]

$130,184.90. >> SPEAKER: THANK YOU MAYOR AND COUNCIL, THIS IS PROMPTED A LITTLE BIT BY THE REMOVAL OF THE BUILDINGS. THEY WANTED TO START REMOVING THOSE BUILDINGS ACROSS THE STREET WHERE CITY HALL IS GOING TO GO. APPROXIMATELY AFTER THE HERITAGE DAY WHICH IS SEPTEMBER 12-13.

IN ORDER TO DO THAT, WE NEED TO TAKE DOWN ELECTRIC LINES THAT GO TO THE MIDDLE OF THAT CLOSE TO THE OLD CPA BUILDING.

WITH THAT, WE HAVE BEEN IN DISCUSSION.I'LL TAKE MIKE ADAMS FOR OUR ONGOING DISCUSSIONS WITH ENCORE ABOUT RELOCATING THE LINES IN THIS AREA.

MAINLY WHAT THIS IS IS, HERE WE GO, WE WILL LOWER THE LINES AT

[02:30:13]

THERE IS NO OVERHEAD HERE. AS WELL IS UNDERGROUND WHAT IS GOING HERE AND THEN GO ABOVE GROUND ALONG THE AT&T BACK TO THE DOLLAR GENERAL SITE. IT WILL UNDERGROUND TO THE TEMPORARY TRANSFORMER. THEY WILL BE PLACING ONE - - ADDITIONAL TWO CONDUITS FOR I BELIEVE AT&T AND SPECTRA.

I THINK THEY ARE ALSO GOING TO PUT IN A LOW VOLTAGE FOR US WITH LIGHTING AROUND THE CITY HALL PARKING LOT AND FROM CITY HALL.THIS IS ONE OF THOSE THINGS THAT WAS NOT PLANNED OR BUDGETED FOR. IT'S A DESIRE TO GET THOSE - - $138,000. IF HE WERE TO LEAVE THOSE LINES UP, THERE WILL BE SOME ENCORE WORK AND ELECTRICAL WORK THAT WE HAVE TO DO.HERE IS ALSO SOME REROUTING OF SPECTRUM, AT&T, THOSE LINES AS WELL. WE DO KNOW HOW THEY WOULD DO THE ON SITE BUT IT WOULD BE TOO THIS AREA.

WITH THAT SAID, I WILL ANSWER ANY QUESTIONS RELATED TO THAT.

>> THIS QUALIFY AS UTILITY EXPENSE?>> I DO BELIEVE YOU CAN UTILIZE FUNDS FROM THIS AS WELL.

>> ANNA HAMMONDS: THIS WAS INCLUDED IN THE OVERALL PROJECT

BUDGET. >> NOT INITIALLYONE THIRD $25 MILLION ESTIMATE . IT IS DISCRETIONARY, THIS IS THE PART ABOUT SCOPE THAT IS MOVING.

>> IT COULD BE CAPTURED AS A CONTINGENCY.

>> CHRIS: WE HAVE ALLOCATED EXACTLY WHAT IS WOULD COME FROM. THIS COULD COME FROM FOR A, ARPA, BOND FUNDS, WE UTILIZE ALL OF THOSE.

>> ANNA HAMMONDS: TO SEE THE TIMELINE OF WHEN THIS WOULD

START? >> CHRIS: AS SOON AS THEY GET IT SIGNED, THEY WILL GET US IN THE QUEUE.

I DON'T KNOW THAT HE WILL MEET THE SEPTEMBER 12 ORSEPTEMBER 13 DEADLINE , BUT THAT GETS THE BALL ROLLING.

>> ANNA HAMMONDS: ARE THERE ANY TRAFFIC IMPACTS?

>> CHRIS: THEREWILL BE , BUT THEY ARE NOT POSSIBLY OVERCOOK THE FRUIT HERE , BUT EVERYTHING ELSE WILL BE BORED.

>> SPEAKER: WE HAVEONE MORE QUESTION .MAYBE IT IS MOREFOR THE MAYOR AND COUNCIL . I KNOW 138 IS SMALL POTATOES IN THE TOTAL BUDGET, BEFORE WE GO TOO FAR INTO THESE TYPES OF CONVERSATIONS, DO NOT WANT TO REVISIT THE UTILIZATION OF THE FUNDING MECHANISMS TO HELP DEFINITELY IDENTIFY HOW WE ARE GOING TO FIND THE OVERAGES AT CITY HALL?

>> RICHARD RENO: YES, BUT PROVING THIS TONIGHT - -

>> I ONLY SAY BECAUSE WE ARE AT THE PROPOSED NUMBER, WE ARE STARTING AT 7 MILLION. THIS ADDS TO IT AND TO JUSTIN'S COMMENT EARLIER ABOUT THE THOMPSON CONTINGENCY, IS 10%

CONTINGENCY AS WELL. >> ANNA HAMMONDS: IT IS NOT OUT

OF A CERTAINWINDOW . >> CHRIS: WILL BE ESTIMATED WAS

$150,000 FORTHIS . >> ANNA HAMMONDS: BUT WE

FIGURED IT OUT. >> CHRIS: WHAT IS PROMPTING THIS IS THE TIMEFRAME. THE COUNCIL WANTED TO GET THIS DOWN IN AUGUST AND WE DECIDED TO GET THIS DONE SEPTEMBER.

>> CLARK WICKLIFFE: BY YOUR COMMENT, DEEMING ALL THE FUNDING MECHANISMS?LET'S SAID HE WANTED TO COME OUT OF COVID MONEY AND A GENERAL FUND, DO WE HAVE TO WORK THAT OUT STILL?

[02:35:04]

>> I WOULD THINK THAT THE SENSE OF CONVERSATION HAPPEN MORE AND MORE, SO WE SHOULD PROBABLY GET CEMENTED ON HOW WE PLAN TO FIND

IT. >> HENCE THE URGENCY TO HAVE I

. >> YOU ARE CORRECT, THESE CONVERSATIONS ARE COMING DOWN VERY QUICKLY.

I DO KNOW THAT YOU HAVE TO FINALIZE THE FUNDING SOURCE HERE. IF HE COMES LATER ON AND MRS. HEIDI WANT TO USE THEARPA FUNDING FOR THIS , WE CAN REIMBURSE FOR IT. I DON'T FEEL THAT IS CRITICAL.

MAKE A MOTION? MOTION TO APPROVE.

>> RICHARD RENO: MOTION TO APPROVE, SECONDED?

[EXECUTIVE SESSION]

THIS TIME, COUNSEL WILL CONVENE TO AN EXECUTIVE SESSION PURSUANT WITH TEXAS GOVERNMENT CODE, SECTIONS 551.072, WE HAVE TWO ITEMS. FIRE STATION, LAND FOR FIRE STATION NUMBER FOUR AND SOME REAL ESTATE PROPERTY LOCATED WITHIN THE CITY OF MIDLOTHIAN. NO DECISIONS WILL BE MADE IN COUNSEL, ULTIMATELY MADE IN OPEN SESSION.

AT 6:51, WE STAND ADJOURNED TO EXECUTIVE SESSION.

* This transcript was compiled from uncorrected Closed Captioning.