Aug 02, 2021 City Council on 2021-08-02 9:00 AM (WORK SESSION)

>> Good morning and welcome to this work session focusing on budget. I'm Mayor Pretend Paul Meltzer, the mayor is a little bit detained this morning but asks that we go ahead and get started. We do have a quorum present so we'll go right into our first work session report. It's item A, ID 21-854, receiver report, hold the discussion and give staff direction regarding the streets fund and long term funding strategies. >> Good morning Mayor Pretend and city council, David Gaines, assistant city manager. Looking forward to a number of good discussions today. This is obviously a big day on the calendar, our budget workshop and want to certainly take this time to thank all of our staff who work toward this date for most of the year. So again, looking forward to some good conversations and the first item is our streets fund conversation which we've been anticipating for a number of months now really since the retreat in February. So the objectives of this presentation, we're going to start by reviewing our current street funding tools, then look at our five year progress in street condition with the investment that we made over the past five years and some of that was touched on last week as we presented the streets, made the street improvement fund. Then we'll look forward to the next five years, present a streets plan, a streets rehabilitation and reconstruction plan for the next five years and then have that long range discussion of what does it look like for maintenance costs over the long term and how do we plan for that, how do we fund those and how do we have sustainable path moving forward which I think really was the objective that was given to staff during the council retreat in February. So again, the streets capital fund was noted and approved by council as a priority during the council retreat so that's why you see this presentation before you today during the budget workshop. So the way we interpreted that moving forward is how do we establish additional funding for street maintenance and rehabilitation that doesn't simply rely on the tools that we have right now and over the next slide I'll talk about what those tools are but one of the priorities as we move forward is how do we lessen our dependence on debt for the future street rehabilitations and reconstructions that we have into the future. So and again, how do we have a sustainable source of revenue that's going to grow hopefully with the inflation and reconstruction costs that we know are coming down the road. So to set the stage with our current state, how do we fund our street improvements and street maintenance right now? So here are a number of those buckets that we have for that funding. The first being the street maintenance fund. We had that presentation on that fund itself. It's also currently called the street improvement fund. That was established by ordinance in 2011, 2012 being the first year that we had that fund and we've gradually increased at council's direction the amount of our franchise fees that have gone into the street improvement fund. Franchise fees were the primary revenue source. There were a couple of other ones, interest income and interest savings, you can see there, but the primary revenue source being franchise fees. That percentage increased to close to 80% and that's what you've seen in the past couple of budgets. The current budget is at 77%, 77% of all of our franchise fees go into the street improvement fund and the rest remain in the general fund. So we'll look at that number a little bit later and again, as we discussed yesterday with one of our recommendations moving forward. So again, what does the street maintenance fund, what does the street improvement fund fund? Well, it funds all of our staff that works on the street. So all of the staff, all of our crews that do regular street maintenance are funded through that fund and then just the costs to do street maintenance itself. And as we go through the presentation, Ethan Cox is going to come up, our general manager of public works and talk in a little bit more detail of what that difference between street maintenance and a true street reconstruction is. So that will help give some context there. But primarily those franchise fees go to that street maintenance. They also go, then any of the excess funds we have each year have traditionally gone to street rehabilitations, those major capital projects that you see when we reconstruct the street from the ground up that you also see in our bond programs, which is a good segue to our next bucket, which is debt funding. That funding is really focused on those true rehabilitations or complete reconstructions or major roadway projects. So if you recall from the bond presentations, the bond discussions we've had in the past, we have two kind of large areas that we focus our street improvement bond propositions on. One is the street rehab program, which a simple way to think of it is those are those neighborhood streets, those non-major thoroughfares that we use to go in and have really focused over the past bond program on that neighborhood approach of going at the low OCI streets, but trying to do it holistically with our water, wastewater, and taking that process moving forward. You can see there in the box, that's the amount of total street funding that we've had in each of the bond programs over the past three bond programs in 2019, 154 million total for street improvements, 70 million of that was for that street rehab program, those neighborhood streets. The rest of that was for those major roadway projects, which you can see those listed there as well, the Hickory Creek project, Bonnie Bray, and Ryan Road, just for examples of what that delineation is between our street rehab program and those neighborhood streets and those major roadway projects. Over the past number of years, and we've had this conversation with council frequently, we've also issued additional COs to try to make up some of those gaps and ensure that we have enough funding to have that rehabilitation that we need. That does lend to some of this conversation, so that COs having this additional debt issuance isn't always the tool that we use for the additional funding. How do we create the sustainable resources moving forward? The other two buckets of dollars that we use, external funding is very significant, especially with those major roadways. As we go out for Hickory Creek and Bonnie Bray and those roads with regional impact, we're constantly working with the COG, working with the state to try to get funding to help build those roads. You see those frequently as well, and that's significant dollars that we use toward those major roadway projects. We also have our roadway impact fee funding, and as we look at developments coming in, the roadway impact fee is intended for them to pay for the roads that help address the demand that comes along with those developments. As we move forward with the mobility plan and the comprehensive plan, we'll also be bringing back an impact fee study that ties to the mobility plan so that we ensure we have our fees set at an appropriate level so that those developments are paying for the increased demand as they come on board. We talked about this last week as well, but just as a reminder, this is just the status quo that we have right now, but formalizing it. Right now, our ordinance on how we fund our street improvement fund just says franchise fees will come over. We want to formalize that and say 80% of all of our franchise fee revenue will go to streets, 20% to the general fund, and then of that streets funding, 60% will go to maintenance, and then 40% to help offset those capital costs, those true street rehabilitation costs. At this point, I'm going to hand it over to Ethan Cox, our general manager of Public Works, to talk about some of our progress over the past five years and what our goals are moving forward from an OCI perspective. Thank you, David. Good morning, members of council. So this is a slide that the city council received during last week's budget presentation for the streets maintenance fund. I want to spend a little bit of time kind of setting this up. I know some of you are familiar with this chart. You've seen it in years past, but also some of you may need a refresher or you're new to council. So every five years, the streets department goes out for what we call an overall condition index assessment. That's essentially a report card for how all of the roadways in our inventory are basically holding up and performing. It's route quality. It's also the overall condition of that roadway, and so this graphic is really intended to show our improvement over the last five years and some of the other changes that have happened in our network. So this is 2015 to 2020. Like I said, we generally go out for those studies about once every five years. So if you'll follow my mouse a little bit, I'll set up the chart for you. Over on the left-hand side, your Y-axis, that is your lane miles. So every street, every roadway in our network is depicted on this graphic here by those bar charts that you see. On the bottom axis, running left to right, you have the actual score within the OCI index. So zero, just like in grade school, is about as low as it gets, can't get much worse than zero. A hundred is as good as it gets. So left to right, you go worst to first, in essence. The bars on the left-hand side are your 2015 lane miles, and the bars on the right are your 2020 lane miles. And we've also kind of segmented this chart up into different categories. So you can kind of see some of the movement that's happened over the last five years. One of the big things that's happened during that time period is we've done a significant amount of work in the 2012 and 2014 bond packages. I know a lot of you weren't on council at that point whenever those were approved, but really the focus of those bond packages was roadways with an OCI less than 20. So really over here in this very poor category was really what those bond programs were targeted for. So you can see we made a vast improvement in the network. We kind of call that the shotgun approach, is we go out and look for every OCI street under 20 and try to rehab those. There are some weaknesses that we have with that, and I'll detail that in just a moment. Any questions now or continue? I think let's kind of get through a bunch and then we'll take questions. And so on that point, I think the '12 and '14 bond program has been extremely successful. One of the things that will happen as you rehab those very poor streets, they are then basically considered a new asset, and you'll follow my mouse. Those get bumped over into what we categorize as excellent. So they go all the way up to a point of 100 on the OCI scale. In addition, you also have roadways that are added into the network. We see about 20 lane miles a year that come into the network as new roadways. So the most significant movement we've seen on the tails of this distribution is on the left, we've reduced our very poor significantly. We've also added about 6 percent to what we call our excellent. Now the middle of this range is something I want to get into in just a moment, but I do want to highlight our network overall OCI went from a 64 to a 68. For the past 10 years, our goal has been to try to get around a 70 OCI, which is very solid for Texas City, given some of the conditions that we deal with. The other goal that we've been chasing at staff is our backlog of 10 percent or less. When we talk about our backlog, we're really talking about basically your poor all the way over to very poor. Trying to keep that at 10 percent or less really kind of helps you balance your overall investment in your roadway network, so you're not always just going after those assets that need to be reconstructed. The last thing that I'll mention on this slide, because it does set up in terms of how we're altering our approach, is the changes in poor to very good. You'll notice that both our good and very good have decreased. What happens over time, and I'll show this a little bit better on the next chart, is you lose one to three points in OCI every year on most roadways. Now for some roadways, that degradation happens very fast because of certain conditions. In other places, you may have a roadway last much longer because of heavy maintenance, or it's just not as traveled, or the soil conditions, etc. You will see that our poor and fair did increase, while our good and very good decreased. This is a simplified version of that chart. This is showing just the 2020 roadways, or the roadway conditions from 2020. You'll see we break those out into excellent to very poor, and down below that we kind of tie a couple of additional pieces to this. This really lends some importance to, we want to maintain those assets at the top end of the curve as long as we possibly can, because as you start moving from right to left, you can see you go from minor maintenance to major maintenance to reconstruction. We've included some definitions for what that entails down there, but really importantly, look at your cost. On a poor lane mile basis, it's very cheap to maintain a lane mile of a roadway that's in the excellent category. You're talking about just crack ceiling and surface treatments. You get into major maintenance, and now we're starting to pull back layers of that roadway, and having to reconstruct partially, with mill and overlays. Then you get into the reconstruction, and you're talking either partial reconstruction or a full reconstruction, which takes you all the way down to the subgrade and the base of the roadway. Like I said, that's like constructing a new asset. Your costs do increase, and in some cases, exponentially increase as you shift from one category to the next. One of the things that we've really tried to do over the last few years of staff, and you see some of this come through in the 2019 bond program, is shift away from just focusing on that very tail end of our distribution, the really very poor roadways, making sure that we're spreading out that investment elsewhere in the network. Primarily we have used bond funding, as David said, to address some of those reconstructs or rehab projects. When we met with the bond committee, one of the things that we had talked about is, do we want to change our approach? Do we want to maintain that focus on those very poor roadways, because that's certainly some merit in doing that. The disadvantage of that, as we've highlighted here on the slide, is that it does not include those connector segments. May not include those segments that are in between. You may have a 20 OCI here, a 20 OCI here, and a 40 OCI that's kind of stranded in the middle. Is that a wise practice to reconstruct around it and to neglect that in the middle? That was one of the reasons why we thought about shifting away from that shotgun approach. The other thing that we talked with the bond committee about was, do we want to take a neighborhood approach where we kind of throw a lasso around this area on a map and say, we're going to reconstruct and deal with everything in this area that needs work, not just those very poor roadways, but maybe some of the marginal OCI that's fair or poor or that has utility work that needs to be done. Ultimately, what the committee recommended and the council and the voters approved was kind of a hybrid approach, where we do continue to approach those less than 20 OCI's, but we also have kind of a neighborhood-based approach where applicable to go in and do a more holistic treatment, if you will. Over the last few months, the staff has started taking a look at this and really trying to package up how we're going to address the 2019 bond package. A few things have kind of been underway. Number one is, we have been looking at ways that we could perhaps coordinate some of this work and try to leverage additional economies of scale. So we're also under design. I believe the Southeast Denton neighborhood is probably the first one that's right out of the gates. So we are under design for that. One of the things that we're trying to do is have kind of a more holistic design, where we're not just looking at the roadways. Are there opportunities for improved lighting, sidewalk repairs, curb and gutter repairs, things like that, that we can kind of tie in there. We're also looking at utilities, both internal and external, making sure that there's good coordination on that, and that if the roadway is having subsurface utilities work done underneath it, that we factor that in, and we probably need to go ahead and reconstruct the top layer of that roadway when that utility work is done, even though it wasn't part of the bond package. Lastly, we are looking at alternative delivery methods to where we have kind of program management, if you will, for each of these neighborhoods, to where there is kind of a one-stop shop for who's managing the project, as well as accountability. So as I mentioned that, we do have that kind of neighborhood packages approach. Staff has found a way to essentially group all of the segments that are part of the 2019 bond program into bundles, if you will. That does a couple of things for us. Number one, it leads to better economies of scale. By bundling things in a geographic area, you don't have to pay for mobilization costs multiple times, so you get more bang for your buck. It's also more efficient. And I think one of the things that we had talked to the committee as well as the council about during the bond election was we really want to try to come in and do a heavy treatment on these neighborhoods, and then hopefully not have to come back for a decade or so and disrupt them with construction again. So as we've looked at that, we've seen other opportunities to include additional segments. And with the resources that we have at hand that David's going to talk about in a moment, we feel like there's opportunities to include additional segments in the 2019 bond packages and bundles that we're pushing out. Some of those are that utility work that I mentioned. Others are roadways that are in those neighborhoods that have kind of marginal OCI. Maybe it's not very poor, but it may be fair or poor, and while we're in there, we might as well go ahead and tackle those instead of having a return in five or ten years to address those. Excuse me. Mayor is here. We haven't had taken any questions yet. And I know there are at least some questions about maybe about how OCI works and so on, you know, but we haven't taken any yet. Okay. Thank you. And we haven't looked at how many slides you're close. You're about halfway through? We've probably got about five, six slides left. Okay. We'll just finish and then we'll take it. Okay. Perfect. Thank you, Mayor Pro Tem. So we talked on the previous slide about adding additional segments, so I'm going to take a little bit of time with this same chart and kind of give you an idea of what we're talking about and what kind of impact the 2019 bond program would have if we follow staff's recommendations. So here in this box underneath the chart, you'll see 2019 bond program. The original program was for 219 segments, approximately 69 lane miles. And as David mentioned, about $70 million worth of funding just to the reconstruction portion of the bond package. If we look at those subsurface utilities and reconstructing the roadways on top of those, as well as those marginal OCI connector segments, staff believes that there's an opportunity to pull in an additional or get up to 401 segments total, 114 lane miles. So about an 80% increase in the overall work output of the bond package. But because of those economies of scale, you're only increasing the price by 38 million versus the 70 million that was initially approved by voters. David will talk about how we do that. But one of the levers that he mentioned earlier is that we have had a historic practice of transferring money out of the operating fund, the streets maintenance operating fund into capital in the past. So most of this funding would be tackled by formalizing that process and kind of locking that in in the future. If we execute that program along with this ongoing maintenance over here, typically we spend about $4 to $6 million a year in ongoing maintenance that is maintaining roadways that are fair or better. As you recall in the previous slide, those costs are a little bit cheaper than going for a full reconstruct. So you can cover a bit of ground at a lower cost. We believe in kind of inflating that 5% a year to deal with the new roadways that are coming into the network, as well as those kind of cost inflation factors. Up here you can see in the chart, these dark shaded areas would be representative of those 114 lane miles that we have right here. So you can see the amount of traction we would be gaining by going in and addressing not just 2019 but those added segments. Staff believes if we're able to execute this plan, if council gives direction to do so, we foresee our OCI being around 71 to 75. We feel pretty confident that we can hit 71. And if our maintenance plan works, we think 75 is certainly achievable, which would be a very nice OCI grade for a roadway with as much asphalt in Texas as we have. The backlog, we're estimating between 12 and 15%, and if you're doing math in your head, you'd be like, well, we're down to 6% when you execute this, and that's correct. But if you look at these little bar charts right here, these little bars in fair, you're losing one to three points a year. So you will have about half of this start to shift over into that poor and very poor. The other way that I would say to look at this bar chart is these are waves moving to the left. And so you can kind of look and see future funding needs kind of coming at you as the years kind of tick by. So that's essentially my portion of the presentation. I'm going to hand it back to David, and then I'll certainly be available for questions. Thank you. So the rest of the presentation really is looking at projections on what does this look like long term over the next 5, 10, 15 years, and how do we think about funding strategies moving forward. So you can see those high level projections here, and again, want to emphasize as we go throughout this process that we made a number of assumptions, which we have laid out here below, which I'll go over briefly to come up with these numbers, but there's nothing more scientific than that to it. And we certainly think it's worthwhile to bring someone in and take a deeper dive into some of these assumptions moving forward. And I'll also say even as we look at these, and as Ethan talked about the range of trying to work more on the right side of that table and the maintenance side, the hope would be as you focus on the maintenance side, you shorten or you lengthen that time it takes to get to that full reconstruction. So there's a number of variables that could change this, but wanted to put this out here for this conversation to start thinking about what the long term liability we have and some of the concerns that could be out there as we move forward over a number of years. So if we look at the first column here, the 22 through 26, this is really what Ethan just talked about. This is inclusive of adding that additional scope of more connector streets and taking that neighborhood approach more broadly than was initially considered in the bond program. Then this gets you with just a gap of $6 million. This is built into this is taking those franchise fees, which we already do the 80% of franchise fees and splitting 40% out for capital funds, which you can see there as the capital funding franchise fee row. So this would somewhat be a status quo. There's no additional resources needed for the five years to still have that $6 million gap that we would need to address, but at least we have a good plan for the first five years based on what we know right now, understanding there is that gap below. We do see that start to increase as we move out over the next five years. Some of that's that wave coming forward that Ethan talked about. Some of it's just the assumptions we have on inflation. Inflation has been significant over the past number of years as we all know. We've shown here cost inflation of 5% moving forward, and we'll see how realistic that is as we go forward, but wanted to put that in there as a conservative estimate so you can see how that impacts us moving forward. On the bond funding, we have kept our same percentage of bond funding in the out years, but what that means is a significant bond program each five years. You can see it's that $70 million that we talked about earlier for street reconstruction that was in the 2019 program. That would be up to $146 million if we kept the same model moving forward for the next bond program. And that's really just trying to hit those goals as we've laid out of a 10% or less in our backlog and shooting for that OCI target that we mentioned earlier. So that is certainly a consideration. Is it realistic to look for a bond program that large, or do we want to start pulling some of these levers for more revenue funding sooner or change our goals and not be as aggressive as we've laid out in this presentation and in the assumptions below? So I'll touch on those assumptions briefly. We have included some growth in lane miles knowing that we will experience growth or at least in this plan we have growth anticipated at 20 lane miles per year. We know we're going to have road rate degradation and those roads are going to continue to go down the scale. What we hope is that 2.5 OCI per year is not what we actually experience. As we focus on that maintenance on the right side of the table, we're hoping that 2.5 is very conservative and we can certainly beat that, which will help us in those out years. We talked about our goal of the 10% less in the backlog and the cost inflation and I do want to make this point, especially as we look at the funding options on the next slide, franchise fees most likely will not keep pace with cost inflation. Franchise fees, we have it in here as 3% per year, which is a conservative estimate, but naturally that's going to level off at some point. Franchise fees will continue to increase as the community grows and there's more revenue coming in from those resources from either own utilities or from other utilities that are in our roadway, but it's not likely that that's going to keep pace with cost inflation over the length of time that we're talking about. Now we get into the policy funding options. If counsel's desire, if we wanted to move forward with allocating more revenue funding, getting less reliant on debt, what are some of those resources that we could dedicate? You can see up top what's already included in the proposed budget and again this is in line with our past number of years, so not a change from the 80% franchise fees that are going to streets and we also had additional funding from the general fund reserves that we have planned in the proposed budget to go out to those street rehabilitation projects. The other options, this looks similar I'm sure as we had the catalyst fund conversation a few weeks ago, there's only so many buckets that we can pull from, so we wanted to lay those out here and talk about what those could look like. We could dedicate sales tax dedication. There are a number of cities as each city has different options of what they can do with their 2% limitation on sales tax, there's a number of cities that do have dedicated sales tax to street maintenance. This proposal would not be to go that route with a dedication which would require a few elections but from counsel's direction we could divert some of our sales tax toward street reconstruction and shift that over to the fund. Now if we looked at something like an eight of a cent sales tax that is a significant dollar amount that would go over but also immediately would mean you'd have to, unless you cut resources elsewhere in the general fund, increase your property tax or other revenues associated. So if we wanted to go with sales tax we would certainly bring back an option that would phase that in as opposed to doing all that entire increase in one year. The other option would be that you dedicate a portion of our property tax which is obviously a reliable resource and that would continue to grow, assess values grow out to a streets fund, out to for some of those street reconstruction resources that we would need in those projections and I'm sure this number will be discussed a number of times over the rest of the day but that's about 1.5 million for each cent on the tax rate. We could also increase our city owned utility franchise fee. Our utilities pay five percent in franchise fee for which is roughly equivalent to what all the other utilities pay that are in our roadway so they pay five percent we could bump that up by a half percent with the justification that our utilities are in the roadway just like our other utilities and provide the same benefit. So that would obviously that would have no direct impact to rates but would be a cost that would be borne by utility rates ultimately and then we could all the other option from franchise fees with right now we're doing 80 percent and 20 percent we could just say eventually 100 percent or of our franchise fees go to street to street reconstruction phase that in as well maybe 85 percent one year and move forward so you would still have the same limitations or the same concerns that I talked about earlier where franchise fees alone just very likely aren't going to keep pace with cost inflation and just the wave of streets that we know are coming when we take this long term view. So this is the same chart we saw earlier that lends us to those funding gaps with number one the assumptions that we had and number two those significant investments in bond programs in the out years and we put a strategy here to address that gap of increasing those city-owned utilities franchise fees from five to five and a half percent and having a one cent property tax devoted to street reconstruction that went over to those funds. What that does over the 15 year period is get you where you at least address those funding gaps that we've outlined with the assumptions but again with those significant bond programs in the out years. This is just one way to do it. We have those funding options and certainly look forward to a good conversation with council on if you would like to do anything right now if you'd like more information or just discuss the funding options that we laid out. So our next steps we would the first step like we talked about last week if you're comfortable with the 80 percent 20 percent split that's common in past practice and then our additional split of those streets funds we would want to get an ordinance to formalize that as we move forward so it's not as open as it is now so we can say this is our plan each year moving forward. We obviously have our budget adoption which has the plan that we've outlined so far and then if there's direction from today we would include any of those changes in the budget for FY 22 as well. We would like to take that initial analysis and look at right now we're saying 15 years on some assumptions that make sense to us but let's look at a 30-40 year plan with some expertise that can come in and dig into some of those variable understand the market conditions and also think about what do streets look like as we can reconstruct them. We've continually talked about the holistic approach to roadways the complete streets what does that look like how does that play into this long-range plan. Obviously this conversation has been on funding there is a whole another conversation that we are having now in the mobility plans and elsewhere of what does it actually look like when you reconstruct these roads and how can we make sure that we're planning for what roads are going to be over the next 30 to 40 years and then we'll continue to review funding options not included in this presentation there is a transportation fee that could be applied to utility bills and that's something the city of Austin does if that's in that goes straight into streets funding if that's something Council would like more information on we can bring that back as well just as one option to say we went through the funding options that we have right now available to us but there are other things that we could consider. I know that was a lot of information we have a number of staff here for questions from the streets department finance department and engineering department so we look forward to any questions you have thank you great counts thank you David and thank you staff Councilmember Amartya yes so three three questions first and the slide where you list the policy funding options I was surprised not to see anything about an increase in impact fees for any kind of use or all uses I was wondering if you could speak to that and then I have a we'll have a follow-up question based on well we as we again when we bring that mobility plan back we're going to bring back a new impact fee ordinance and our goal would be right now we don't collect a hundred percent we don't do we have our impact fees are subsidized so we're going to we want to bring that policy discussion back to Council the reason it was included here is because this these options were really focused on those neighborhood street programs as opposed to those new kind of the impact fees that go toward major thoroughfares those roads that have a wider impact so just kind of die bifurcating those conversations to some okay thank goodness I'm thrilled to hear that because our new council members might not be aware of you know but we saw last year you know the extent to which we're not nearly you know collecting a hundred percent on on cost to service I'm really looking forward to that that conversation my other two questions are more I know philosophical one about kind of the way you know our approach to balancing you know new construction versus maintenance you know you mentioned projected 20 miles per year of new roads for it to match the growth that you know when I imagine that I imagine Denton expanding and you know taking over Texas I know it doesn't work quite that you know in that way but I'm just wondering you know what the what your sense is and maybe somebody else would rather speak to that but you know it is is there or to me to me it feels like and I might be wrong on this that kind of there's a default approach to kind of plan ahead for for future growth in a way that that sometimes you know can lead to a sense of a you know development funded a development-led city planning versus a city planner led you know city planning and you know I'm wondering if you can kind of speak to is there if that if your sense is that that's accurate or that just kind of what what the philosophy is on that on that balance of you know new construction versus maintenance sure so I'll make a couple points that assumption obviously was just an assumption to throw in for this analysis when we're looking at the 15-year funding gaps they're not those that assumptions not going to play into that because those are new roads right and we're not it's going to be 30 to 40 years before we have those major expenses now we're going to have the rehabilitation or the maintenance expenses to associate with those but we know those are less than the full rehabilitation so it doesn't necessarily change this exact discussion over 15 years but that's it does go to that point of when you add these roads there is the maintenance and the liability in the future that comes along with them one of the things that we are doing at Councils direction is we're just almost complete with our fiscal impact tool that we've been working on so that we can have that analysis of developments when they come in a more thorough analysis as opposed to the fiscal analysis that goes right that accompanies developments right now so that is going to take all that into account of what are these neighborhood roads that are put in by the neighborhood look like from a liability perspective over the next 30 to 40 years so that tool should be a great asset as we do those analysis but I think that is certainly something to consider each time new development comes on board. Thank you and I'm really excited about that new tool and thanks for mentioning that and finally I just wanted to say I really love the approach to OCI and its flexibility and the analysis that came in today's presentation so I really appreciate that. I'm wondering when investing our limited finances in road improvements how we balance OCI and streets that are just in really bad shape physically versus streets that might have a higher OCI but are public safety hazards because of any number of issues, unforeseen design flaws, speed, the need for maybe speed bumps and things like that. Are we privileging OCI over these other issues or are they really two separate issues? My sense is that they're two separate issues but I'm just kind of trying to get a sense of the way that we budget for OCI is so connected to these really wonderfully measurable metrics and when we're talking about streets that have public safety concerns we have less of a, there's not a number, at least as far as I know, that we assign it at the level of danger. So obviously we have either Becky Devaney or Ethan Cox to elaborate on this but I would say at a high level is when we're looking at these OCI and we're planning these long range plans we're doing at that just 10,000 foot level of saying here's what we're going to target an OCI. Their staffs are constantly dealing with those issues as they pop up from public safety speeding those type issues as well so I think they're both going on at the same time and they do play into each other but I don't know if you have anything you want to add to that? Council Member Guar. Thank you Mayor. I have several questions some of which might require a lengthy response but first I want to just give some sort of general direction and I'll come back later to give the more specific policy direction that you all asked for. You know you kind of indicated that you're looking for a general direction of do we want to be more conservative versus take a more aggressive approach. I would say that I favor the more aggressive approach I think that the economic conditions are right for us to really try to get a lot of this done as quickly as we can. Costs are only going to go up and we don't know how long our revenues are going to continue to increase so we need to we need to strike while the iron's hot I think. As far as oh complete streets I would say that that needs to be a pretty high priority for us I think that that needs to be considered in conjunction. You know I think I think we need to consider bike paths and sidewalks in as just part of the road especially when we talk about kind of the time frame that we're talking about here like the next 10 years we need to be making a shift in these next 10 years away from single occupancy vehicles and and toward an approach that that favors walking biking rolling public transit. So questions first I could use a little bit of a primer on franchise fees and how they work and what limitations might be placed on us regarding our ability to to collect those franchise fees I'm particularly looking at and I know that this is not you know the fund that we're talking about right now but because it's specified line by line on page 79 in the proposed program of services for the general fund it's looking to me like we we collect significantly greater franchise fees from city-owned utilities than we do from from others and I was wondering you know does that hold true for the streets improvement fund as well are there opportunities to collect more franchise fee money from from private utilities is what I'm really asking but if you could also give a general overview of how how franchise fees work sure so yeah I'll start with I'll start with that piece certainly there are our municipal owned utilities pay the largest share of our franchise fees but co-serve and at most and other folks that are in our in our right of way do pay us franchise fees and they have different percentages they're there for the most part right right at five percent they self-report their revenues to us and then and then send those to us we don't have much involvement in it other than what they self-report and then send us so we track the revenues they send us but that's really the extent of our our involvement in the process with those external utilities we simply get the revenue that they send us based on the percentage that they owe with the with our internal with our municipal owned utilities we have administratively set that at five percent to try to just be in line with what our external utilities pay but there is the ability to have a conversation as we kind of laid out of do we want to look at that at five and a half percent to have a justification there if if we were comfortable with using some of those utility funds for this purpose so to your other question of kind of this the split it would be the exact same you know what you see in the in the proposed but in the general fund is just twenty percent of the total so the eighty percent that goes to the street fund would have the same mix as um municipal owned utilities versus versus private utilities i hope that answered most of your question but um yeah that definitely partially answers my question um is is there a limit on how high franchise fees can be i guess like do does council have the authority to to raise that percentage the private franchise utilities are paying we have a there the only limit that we have on what the utilities can pay toward um and i don't have these numbers in front of me i know we did discuss them last year or at the beginning of the onset of coven when we increased the dme amount is there's a total amount of our capital assets in the utilities there's a cap on on that amount that can go over to the general fund but that cap is very high right now we're not close to it so we certainly follow up with that exact information but the half percent increase that we're contemplating here wouldn't um wouldn't be close to that cap that's in the charter okay okay um yeah i would love to see um an exploration of of raising that franchise fee rate not just for city utilities but for private franchise utilities like atmos uh as well um okay sorry what else um all right i asked that sorry my notes are very confusing um oh roadway impact fees i know we're going to kind of come back to that but i just had a question um so currently by city ordinance um uh the the use of the road back roadway impact fees uh is um restricted to capital improvements within each roadway zone that were included in the impact fee capital improvement plan um excuse me uh first what does that mean and second um does council have the authority to loosen those restrictions on the use of those funds and so we can have more flexibility with them sure uh so i'll start with what the zones in the impact fee study themselves you'll have a zone just for lack of a b and c and so a would be this defined geographic area so in that defined geographic area if the development comes in they're going to pay us impact fees but the impact fees have to be used in that area and the reason for that is the fee itself can vary within each zone based on the anticipated capital investment that you're going to need for those major roadways as they come forward so you could have very uh a wide range of fees based on if you're in a part of town that's more developed you may not have a much new construction coming on for major areas whereas if you're in one that's developing maybe you have more just as one example so you're gonna have different and so that's a justification why you have to keep the investment in that area because they're there to pay for the roads proportionally affecting that area so what is that council's discretion is and when we bring the impact fee study the impact fee study itself the impact the ordinance does prescribe those zones so you could change the way that we look at zones and have varying zones so that would be a policy discussion that we could have with council okay yeah i i think that we should um look at that sometime in the future and and just consider the possibility that um you know when when new development comes in and when our population is growing it's not just that neighborhood that has increased traffic right there's increased traffic all over the city um okay i talked about that oh can you explain why um the the sales tax dedication um and the increased franchise fee revenue allocation would mean that revenue would be offset by increased property tax rate like on on slide 12 you kind of gave us all the options what what does that mean when when you say that revenue would be offset by increased property tax rate sure so if we look at our proposed budget with which cassie will walk through very well later and you look at the general fund if we were to take say we're going to do this as as soon as this year was obviously an option if we were going to take a million out of that budget that we had dedicated to sales tax we would have two options at that point either we increase our property tax rate which is really the only thing we have control over at this point or we lower our expenses so we would have to either cut expenses by which is something we we can obviously do we can look at our supplemental packages we can look at other expenses we have in the city and lower in there so you have to do on one side of the ledger either you increase revenues which property tax would be the most direct way to do that or you decrease expenses if you're taking that money from the general fund thank you that was very obvious and i don't think that my caffeine has hit my bloodstream just yet um that's all my questions for now thank you councilmember bett thank you mr. mayor uh yeah i have a couple of clarity questions and then then you know maybe some education questions for myself um so the in trying to understand the the oci scale and the way you've been dipped either the various poor up to excellent uh i mean i'm presuming that most roads as they go in are in excellent condition you sort of alluded to that in your end and uh you know i'm presuming that generally you expect those to go at the the the aging degradation rate of about 2.5 that you mentioned in the backup um but it does sort of imply you know at minimum we're we're sliding down as you said it's it's a way of shifting so um i guess i don't quite have a good feel i know what an excellent road is it's sort of a brand new road maybe the you know concrete or asphalt that we've put in what's what's poor can you define poor because i don't have a feel for what 10 or 20 percent um i mean are we basically looking at uh wash uh dirt road i know that we have very good pictures for each of those categories but i'm not sure if we have them in this presentation if there are any concerns speak to that uh daniel kramer deputy director of operations uh there are different as you get into poor a lot of it goes into it's it's still passable at that point when you start getting into the higher levels of poor um it is you're looking at um uh base failures in the area which is larger uh potholes um it's alligator cracking which is just like it says the the road's drying out so the surface of an asphalt road is flexible pavement and as the heat comes in it dries it out and it starts cracking and opening up and as it cracks and opens up uh water gets down into the surface and destroys the base and then that makes it soft spots and base failures so it goes uh farther in we can uh share some pictures of the most recent study they have some very good examples of how they go through with different levels on how it is which would uh really help like say a picture's worth a thousand words it's um it's hard to explain but you're going to get um some rutting from the the wheel pass you're going to some very severe alligator cracking and base failures on that and the road's going to be on asphalt it's going to be very very light colored um so it's most of its moisture is out of the out of the road on that uh but this these are but poor is still what i would consider i mean what you would consider i should say not me because that's i'm asking the question um what uh is passable i mean we can we can take a road i mean it's it's not a it's not a muffler buster road it's it's not a washboard road you are yes it it is passable now uh passable has all different kinds of definitions um depending on the type of traffic that's on it if it's on a small neighborhood street which doesn't have a lot of heavy trucks it's not going to degrade really fast uh just small vehicles passenger vehicles that road can withstand for a good amount of time um if that same condition is in more of a commercial area where you're getting more heavy trucks more traffic on it the slope goes down a lot quicker so um it is passable uh but to what kind of uh extent are we looking at how how smooth is the road because your oci takes in 80 percent of a pci which is pavement condition index and 20 percent of your ride index which is the smoothness of the road and so that's how that's broken down on that um on that total oci number so that's that's great and and then that sort of that leads to a sort of a follow-up question i have that i'm trying to wrap my brain around how we're distributing funds and on a roadway plan and that is um do we see if we compare the the different roadways that have come in and development the brand new ones or text dot roads that are brand new and and and we compare these different bundles we've sort of bundled and clustered them um and are are we seeing a rate of change of the oci that varies across dentin and i you know especially uh post full renovation but you know patching as well i assume as we you know we do full renovation there's a certain age rate associated with our full renovation versus a brand new roads age rate versus a developer's brand new road in a new neighborhood versus you know these different clusters all across dentin have different uh you know change in oci as a function of time and and so i guess my question is do we see a differential response um say let's say a neighborhood i'll just give you a hypothetical to illustrate what i'm my question is uh do we see a neighborhood coming in and we say oh we don't have to worry about that that's excellent for x years but we see that age rapidly but then we see when you guys go in and put uh roads in yeah no yours really do take 15 20 30 years before they age out again and so if if we're going in and having to the the new growth that's coming in we're having to fix that sooner then that means that that wave is hitting us sooner than than the wave that we have in our background of all the repairs that we do in our sort of 50 year old roads and our 100 year old roads that we've we've been working on for decades and decades so does that make sense where i'm saying i'm i'm i'm my question is do you know if the different clusters around town show different age rates and and i would really love to get that knowledge i mean sent to us at some point if you know how the different parts of dentin are aging we don't have it specifically broken down into to different areas there are different what they call them our performance curves for collectors arterials residential streets there are a little different also on concrete versus asphalt streets on the curves so just like you mentioned we did update our our our roadway standards i think it was close to three years ago for some of the new developments coming in because we were seeing development roads failing sooner than what they should have and it was pavement thickness issues and geotechnical issues with them not having a solid geotechnical report so we did fix that on all new developments that are coming in forward that haven't already passed through the system so we are going to thicker standards for the pavement and it's either 10 on 10 on 10 or 12 on 12 and not mistaken i'll have to double check on those on the difference on different classifications of thickness of your base and also your your top on that versus our repaired roads versus what we're requiring of developers i'm a little confused yeah i think i think a couple of things that i'll add thank you danny to what danny said is um number one is the the quality of our data is we do have an asset management system that we've been maintaining for the last five or six years and so as we install roadways either they're new from a developer or we reconstruct and bump that oci all the way up to excellent we are going to be able to start trending those and see are is there an accelerated deterioration rate or is there a slower deterioration rate we don't have all that trend right here for today certainly something we can bring back to council something we're keeping an eye on uh the the other thing that i would say is that uh we have updated our specifications and standards for not only external construction but also the standards of which we rebuild roadways as well and so i think those are factors that may not necessarily been present in years past um we do have a number of roadways that we don't even know what the install date is just because we didn't have good records back then so as we move forward i think we're the quality of our data is going to get better and we can start fine tuning i think i know where you're going with this start fine tuning our maintenance and also looking at those specialized areas is the did the developer not live up to their standard you know uh is there a difference in this part of town versus the other and one of the things that danny may have mentioned is certainly conditions throughout the city are not the same you know you can have different soil types uh different traffic patterns things like that that will speed up this curve and so a lot of this is looking at the data as kind of our first step and then trying to bring it back into and find out the root cause of why we're seeing what we're seeing so um i think that's a good takeaway for staff we can certainly look at what kind of trends we have currently and maybe bring that back to the city council as we start kind of finding that data and and kind of jumping to those assumptions and conclusions so i really love that because it goes directly to sort of falling from there the the the budget implications because you know you want to charge the people uh the different groups of people whether it's through impact fees or or franchise fees or utility fees all these different options we've or globally with with with bonds and and property taxes you want to charge the people that use the roads the most for the wear and tear all right and that's going to be you know residential roads have very limited traffic for the most part arterials collectors and collectors arterials increasing up to the point where we have our major roads that everybody's using that everybody should sort of pay for because everybody's using them and and so i i i don't know how we get to the budget where we figure out what we should charge if we if we don't have that sort of number so yes please and sooner rather than later because it's going to make it difficult to say you know like like i could ask the question and um you know um say for franchise fees um you know that's sort of uh you know the justification for franchise fee is that that's our easement that's our roadway sort of and most of the time you're you're tearing into an easement or or a right of way uh is you know you're doing a utility improvement so you could argue okay that's a utility improvement it should be associated with utilities but then you might also then you know have some pushback and say well you know my utilities weren't really changed in this area and most of these utility improvements are for this neighborhood or for that industry or for this thing and so why are we distributing the utility fee rates universally across all of denton you know if if what we really should do is charge an impact fee or a rate or have a non-flat rate structure um and and so that's that's really concerning for me that you know the we're you know to some degree it's fine to distribute them the the the burden across everyone that's what communities do but i i think we without that data it's it's challenging for us to counsel to go yeah um i did have a couple questions um then that is uh the the model for the 20 miles an hour it doesn't matter who answers it the model for the the 20 additional mile the lane miles um over the next budget cycle the the last one from 15 to 20 was 4.6 per year uh you know i think you get 23 miles in in the last five years and why are we we're sort of keeping that we're projecting 20 miles every five years or 20 miles every one year i was a little confused by that it's 20 miles per year 20 miles per year so why are we going up four-fold five-fold i think it's a five-year cycle um i believe what we've seen in terms of additions to the network and so basically from 2015 to 2020 we saw our network go from hopefully i'm correct on this about 1450 to 14 or 1550 lane miles so simple math divide that by five and it gives us about that 20 new lane miles to the total network per year the the 2015 numbers in your chart was 1427 and the 2020s numbers were 1450 which is 23 miles different i can certainly double check that um if that assumption is incorrect we can come back and correct it i i just the i don't have a problem with what the number is but it depends on what the multiplier is then right i mean so if you have a hundred additional miles then you want to have a you know an x times multiplier and if you only have 20 additional miles then you want to have a y times multiplier uh in terms of making sense to what we should approve so i think it it's it's less germane what the actual absolute value is and versus what the delta is uh on that number and and the last one i have on my notes was um uh this alludes to a question that council maguire has is are these the road renovations and both the renovation uh and maintenance versus the the original build out all these budgets include all elements of the project so not just the roadway and curb cuts but bike lanes painting striping any indicator signs everything that we would put in to roadways is is is fully uh mortized into the per mile costs and everything that we've been seeing it is especially as you get into your reconstruction there's certainly design cost and you know program management project management cost that goes into there uh the one exclusion to that is utilities is handled separately so any utility costs that's incurred is not included in these numbers uh because we were strictly looking at the funding mechanisms available to the general fund and the streets fund and david i don't know if you wanted to add to that okay okay so briefly that brings up a real partial question and that is um when we're doing when we have a utility project that must do road disruption i assume then that they are only budgeting patching they're not they're not restoring the road to sort of where they found it and i think even you can come um correct me if i if i don't say this correctly so it depends on the extent of the work needed if it's if it can be done with just a patch right the utilities would pay for the patch if it results in a full reconstruction they would utilities would essentially pay their portion uh we would kind of say if streets was doing it would it cost x amount but this total cost this amount and so the difference is what the utility would pay for for going all the way so so that sort of makes sense but then it it goes back to my first question about the rate of change of the oci because a patched road is it going to age super quickly compared to a fully nice you know held together pristine road where where there's no seams and cracks and and no voids left over from renovation so i i mean i i think without that that sort of rate of change of oci across across a roadway network map i mean i'm amazed you guys can can figure it out because um it's it's it seems like you know we're sort of lumping everything together and merging them and and and i don't know i could i wouldn't be able to sleep well at night sure no i certainly understand that and have similar thoughts what i would say for this presentation this discussion we were just trying to zoom out to that 10,000 foot level and what is a streets fund how could it um what would it mean for us what needs do we have at this very high level so even the 2.5 number that number is not going to be accurate and we hope it's better we hope doing the maintenance on that other side helps make it better and and the new homes coming in just assumptions to have this very high level conversations but there it does lead to a lot more of those detailed conversations and mr mayor if you might i have one really short really short question and are the numbers we're using it's very concise is it median or mean that was three words i believe it's average so mean okay so it's mean okay that that that biases the road distribution is how you do it so i okay thank you it's councilman burke i must say that it's uh it's always a challenge coming after uh councilmember beck because by by uh questions are always very basic in general uh i mean i appreciate councilmember beck tremendously um but i'm really simple here my initial question uh was for the people and i'm asking for the people uh what does oci mean to anyone what does that mean oci we've heard it a lot we use a lot of acronyms and before you add before you answer that question i would be who anyone else that is coming up to speak before us when you're getting ready to use an acronym would you please say the what it is and even maybe give a little background on you know what it means right so i would say and danny can you can if it's if i don't give a good enough explanation but again they're very high level i think i can answer it so oci's overall condition index and it is basically just giving us a report card on what the road looks like so you're gonna have some roads that are in poor shape some roads that are in good shape and that was on that table that we saw so a new road's gonna have a hundred there it's it's a brand new road it is it's in great shape it has a hundred oci and what we've looked at over the past number of years is anything below that 20 to 30 range has poor oci it's a poor the road is in poor quality it needs significant rehabilitation so that's at a very high level that's that's what that means is just trying to report on trying to and it's difficult right you're trying to quantify what condition the road is in so we just wrapped up overall analysis of our roads where the roads were actually looked at and and given the score that's done every five or so years and then we have to make assumptions from that point in between the five years of what the degradation looks like but that's hopefully that at that very high level answers that question. What was that beginning amount before the the 2019 bond election and you add an additional 70 million so just so that that's specifically talking about the street rehabilitation those neighborhood roads so in 2012 we devote with 20 million dollars toward that in 2014 60 or a little less 60 million was a total reconstruction off the top of my head I don't know the exact not just for the neighborhood roads that there was an investment there we also edition issued additional CEOs some additional debt on that so we have all those numbers we can certainly in our follow-up we'll say exactly all the investment before the 70 million and what the 70 million was intended to do okay 70 million the 70 million dollars for 70 million dollars program includes 219 street segments what are street segments I'll let Daniel come up and answer that one because he'll give a better answer to me a segment is actually how we break down our roadways so it is a block to block so as some blocks can be an eighth of a mile some can be a mile depend on where they're at as we start going through you'll see another term that we use is lane miles also which that is a standard term across the board so a lane mile is actually one mile long and ten foot wide because our city streets are a ten foot width so those would be the two numbers that we usually use to quantify our streets the segment is and so that's a segment is it's not as it isn't we're not looking at corner to corner but anything that's in between the corner to the next corner that's the segment part not the corner yes okay okay so it also says that you begin organizing the roadways into neighborhood construction bundles okay so how how did you all decide to let me which how did you all decide which neighborhood goes first second third how does that play out so some of that conversation happened during the bond committee process as we we listed out a number of neighborhoods that we knew needed this total investment and then the bond committee prioritized those neighborhoods so as far as actually going forward with them really where where was the biggest need what where do we need to focus our energies first and that's what made the most sense economically is obviously mixed in there to some degree and that's how we landed where we are now where we've we've we've started some of those the shotgun approach that we've talked about a little bit but we've also started southeast it and as that first true neighborhood approach okay true neighborhood approach so for the folks that are listening out there when when the city comes in and works on your neighborhood streets they're going to be working and taking care of all of the utilities they're going to pull up the entire street and segments no segments and take care of all of the utility work all of the subsurface work all of the what is this what is this word subsurface utility work how much how long with something like that can you anticipate you know a neighborhood being uh i know you know the basic thing is it depends on the size of the neighborhood and the number of the streets but let's say if we take a neighborhood street like southeast didn't area that you're talking about what can be like the anticipation of how long something like that would take to get done because i can imagine someone emailing me in the middle of the night saying they've been doing this for two or three years i'm tired of it i don't know is it that long i'll ask seth can answer that question directly what i will say is southeast didn't as an example we've done numerous community meetings with them to have those exact conversations where seth has laid out here's exactly what you need to expect here's what's going to look like here's long as how long it's going to take but he'll give a better answer for the exact time all right good morning mayor and council seth garcia program manager with capital projects uh so specifically to talk about southeast didn't the two packages that you're kind of referencing one is about twice the size southeast didn't package b is about 45 street segments package a is 22 um so for package a we're looking at roughly a one-year construction time frame so some of that work that's going to be sequenced as you said the utility work goes in first then we come through with the stabilization of the subgrade and then we put the final asphalt layer over the top so in one particular street segment you might see active construction somewhere three to six months to get all of those portions complete now not every street segment will have full water replacement wastewater replacement um they will all have new roadway replacement but that could vary the length of the time frame for each individual segment now when we get into something like package b which has 45 street segments you might see additional time for detours concrete crews might be ahead doing curb and gutter work so that length of time for construction might be slightly longer but it is our goal to be able to process these street segments to where you come in you do the street segment you get out and it's not going to be a full one-year completion for every street segment within the neighborhood hopefully it'll be you're impacted three to six months and then we're out okay thank you very much i appreciate that i knew that already but you know everybody doesn't know that i'm also looking at the franchise fee the utility franchise fee i think that that it's something that can be shared you know amongst the you know entire population is affecting everyone all at the same time so thank you very much that's all that i have just some basic questions like that i appreciate that thank you mayor protein melton yeah thank you uh i really appreciate this exercise and i know where it's coming from i think it's good to have you know kind of worked it all the way through but it's it's led me to some some skepticism about the general uh sort of framing of it so i don't know that i really are just basically different versions of saying it would come out of the general fund i mean franchise fees that don't go to something else go into the general fund so if you increase the use of franchise fees for this so it's coming out of the general fund sales tax you dedicate a certain portion of it what goes into the general fund property tax you dedicate a certain portion so it's coming out of the general fund so uh it leads me to question the uh the point really of trying to find a dedicated revenue stream and locking in a mechanism do you want to say something before i continue my rant look i mean i certainly agree you know there's only some it's one pot and i think if you look at it in one year that's certainly true yeah i think some of the nuance would be if you if you dedicate this portion if you say we're going to take x percent of sales tax it's going to it's going to float with sales tax receipts as they come in and as you plan out over 30 years you can kind of say this is put aside for that and then we'll address budget concerns as we have them with that so i would say that's certainly true in a one to two year time frame but over 30 years you could think about the most appropriate revenue stream for that purpose and it gives you that ability to plan out over 30 years and say this is going here and it's not just a budget consideration each year but it's it's always at council's um well i you know this on the one on the one hand you can take a one year look and just every year the other hand you can take a 30 year look uh my my inclination is uh to have a reasonable timing horizon i'm not against planning one thing i've observed about the future over the course of my life it always comes the future will come so it makes sense to plan uh and i think a reasonable time horizon uh planning horizon like we use for other utilities is something like 10 years when you try to plan way beyond that just it's just uh the world changes too much you know you don't really know what it's going to look like land use patterns how we live we're going from a world of of uh stores and offices to world of you know data centers and distribution centers i mean just it's just so much moving parts but you know kind of 10 years you can kind of imagine i mean i if you look 10 years back it doesn't look you know that that different uh so my my uh point of view would be that uh what should drive it is the projected need based on some reasonable targets and like you've shared uh and and then try to match uh just a chunk of you know a chunk of uh general fund to those needs up against weighed up against other funding priorities i mean it's a budget process it's not you when you i think there are inevitably errors uh to be made when we kind of lock in a mechanism like that uh i'm just expressing a point of view you can take another point of view david uh but uh when i look in the past councils observed the streets in denton are lousy and they're just getting worse and so they they made this mechanism of a portion of the franchise fee went into the streets fund it gave the impression that they were doing something about it well it wasn't nearly enough the streets continued to deteriorate but it gave the impression that we're doing something about it the the in my view the correct path is identify what the need is then figure out how to fund that not not an arbitrary funding mechanism that is unrelated to the size of the need so um as far as what the goal ought to be uh i think parts of this parts of uh what we've looked at with oci have more impact on quality of life than others i think the emphasis on reducing the backlog the streets that are poor and very poor i think that is super right and incredibly irritating to people when the streets are poor and very poor putting a lot of money into making the average oci go from one number to another uh i think that i don't know i think if the uh look at see even very prosperous communities you know what they don't target like 100 oci nor are we uh but the difference between of you know riding on a very good street or an excellent street i don't know that that's worth piling millions of two making sure that we don't have poor and very poor streets to any great extent you know i think that's great and i also agree with the strategy of of addressing whole neighborhoods so that takes a little bit beyond just poor and very poor but i wouldn't honestly worry that much about about the average oci if you're keeping the backlog low uh and and are not impacting neighborhoods again and again and again i think those are really the quality of life issues as far as what the actual gap is that you've identified in a very reasonable timing horizon next four years it looks like you're looking at about a million and a million and a half gap uh i think it's plausible especially as we get into the session tomorrow that we'll see some opportunities in the franchise fee to cover that million and a half but i wouldn't uh say just tie off the jib at 80 percent and you know that you can make the opposite mistake of the past council past council said we're going to set this this funding stream and it wasn't nearly enough if you just set it at 80 percent even if your franchise fees double triple quadruple so now you've got revenue only dedicated to this one priority and you've you've now said to council well that that's off the table as you look at other funding priorities so so uh bottom line for me thanks for listening to the long rant uh is uh uh i would target keeping the backlog low and doing whole neighborhoods if that still equates to the million and a half gap i'd consider whether there are opportunities uh uh in our franchise fees but uh to meet the need not to meet a formula i'm done thanks okay and just to we're getting ready getting into the second round of uh comments and we need to move towards direction so i want to reread the the caption and refocus our use david's words at the higher level uh and i think some of these details can come back i have a summary but i'm going to reserve that until my comments but um i think the just of it is in this and as it states long-term funding strategies is is item a so it's not uh i think the questions are important to get to that right so uh as we kind of focus on strategy long-term strategy funding direction uh we go into our second questions and as succinct as possible we've been at it for almost an hour and a half uh for this so direction long-term strategies councilman ramter yes thank you so i i want to to give my direction um in in doing so to you know respond to uh the comments that have been made so far because i've really appreciated all of them um i'll begin with you know i i i second uh you know councilmember uh mcguire's um you know uh concerns that uh uh that uh people who use public transportation who bike who walk you know is there are do these things as their primary uh you know or at least partial modes of transportation um you know they're they're paying for a lot of these street repairs that they don't cause right and um and i i really like the idea of you know including uh you know bike lanes and and and sidewalk and this kind of infrastructure as just kind of part and parcel of what we do when we plan ahead i also like her idea um and i understand from what you said that it's it's complicated you know about kind of putting more of the burden on as much as we can on uh private private utilities for for franchise uh fees when it comes to franchise fees um i do so on on the one hand um uh responding to you uh you know mayor protem's um comments i i appreciate and agree you know with the idea that uh if we're looking at policy funding um it shouldn't be our it shouldn't be arbitrary right we'll kind of pick from this one one source that has nothing to do with or or some um immeasurable you know connection to uh street degradation and we look for there from the funding source um but um i i think i distinguished myself from uh mayor protem in that i i do like the idea um of a direct uh uh funding option not necessarily to subsidize a hundred percent of it um but because um anything we do that comes out of the general fund without a targeted funding source is obviously going to take away you know from from other priorities um so when i look at these options and this it's a difficult conversation to have because whatever it is we're saying you know this is more money that we're getting from people but it's to do things that we all agree i think are extremely important um and that is repairing our roads um so kind of my problem with um increased uh franchise fees and utility fees outside of the option of increasing the private franchise fees which i like to the extent that that's possible um is is that there's not that and i think both uh councilmember beck and mcguire touched on this that um kind of direct traceable connection you know between utilities and uh and road repair uh and uh when you talk about city utilities you're stretching you're stretching it out and having all utility users pay for it including those who you know but bikers and pedestrians and people who take the bus so for me of all these options i like the idea of exploring sales tax possibilities uh not across the board um but you know really targeted uh sales tax um that focuses on the causes of road degradation uh so you know something like and i'm just you know throwing out some options uh uh a sales tax uh on uh new vehicles right that maybe that doesn't apply to and and by the way some of this might be illegal you know right so but but i'm i'm just um you know uh brainstorming here and i've been researching looking at what some possibilities are um sales taxes on uh new vehicles uh that cause the most damage to roads and the most environmental damage and you know not having that sales tax on smaller vehicles use vehicles smaller use vehicles or electric and hybrid vehicles you know something that would kind of incentivize um uh you know uh use of vehicles that do less damage and that would kind of just disincentivize doing the you know the kind of behaviors that that cause uh road damage with the understanding that road damage is just inevitable and happens over time and there's nothing wrong with using our roads that's what they're for right um uh so uh you know that is is something i am really strongly open to considering and i just throwing out those ideas but would be interested to know you know not necessarily now but at some future point what ideas staff might have about sales tax possibilities where we could tell the people you know for instance an increased gas tax that's a municipal tax uh i i know people complain about how much they pay for gas um but uh you know i i think that that that makes sense um uh so uh and finally i just just wanted to address um you know mayor pro tem's comment about uh you know focusing more on the uh low oci and less on the middle you know um to me although i i i agree and like the idea of focusing on the low oci um as i understand it the reason why we focus on the middle is just a matter of preventative maintenance which is ultimately a cost savings you know if we um and it's less um you know we're less likely to get thanked for it because people see you know their road repair going on or what appears to be a perfectly decent road but just like when you go to the doctor and they tell you you're fine just watch your salt intake you know it's that is saving you from waiting until you have a personal zero you know oci and you're going in for some major operation so it's really like preventative medicine of roads and and you save money by doing it so that's kind of my that's why i'm okay with it if i could just make one comment on the sales tax just to make sure it's clear so we have a two percent city sales local sales tax in the city of denton half half percent goes to dcta one and a half percent comes to the general fund outside of that we really don't have any authority on the sales tax so we just couldn't get as granular as you as you're mentioning of a new sales tax or anything like that now we could look at the one and a half percent that comes to the general fund and talk about how we want to divide that up and think about some options like that we just want to make sure it was clear that we some of those things we just we just don't have the power to do at that you mean it's cities in texas at the municipal level do not okay well yeah i'll be very interested when the discussion comes forward about how our sales tax can be divvied up you know what all of the possibilities are for you know for sales tax and you know including maybe what some and i'll be doing the you know research of my own what other cities do this is something i had asked that tony pointe about early on when he was you know head of finance what what can we and can't we tax so anyway i'll be very interested to hear that conversation done for okay thank you councilman back thank you mayor um so yeah i i want to say that you know again in general i i agree with others characterization of me that i think they share some of those characterizations that there's some concerns about tying utilities to non-utility to non-infrastructure um i i said that uh i also um i do agree with mayor pro tem that in general um everything ends up in the general fun one way or the other and so um it i'd like to see us maintain our flexibility and again back to the utility i don't see we're trying to justify and my point of the questions of is our utilities causing our roadway degradation a little bit but it's more the use and if you're going to get to the use then it's it's the surrounding properties of those roads and and if we can't go to a a fine grain uh property tax then perhaps we can do something in inverted like um i i i guess my my direction is i i don't see a reason to go a whole hog on on tying to franchise fees i have nothing against per se collecting those um i just think it's my direction is not necessarily to tie everything to that i i think that's and my other direction is i'd be interested in exploring and i know this is a dirty three-letter word but the the property tax um because we could do something like adjust that rate and then you know if you want to get creative you and i talked about this a couple weeks ago we could double the homestead exemption so now you raise the rate overall for everyone but now you make residences cheaper by by doubling their homestead exemption and and bam now now we're part we're splitting the baby so because we control our own homestead exemption not not the county's part not the state's part but so i guess i'm more interested in uh that's it's a general funding mechanism it tends to hit the people property taxes tend to hit the people uh who are using who the surrounding property uh and i don't see the utilities being the ones that are necessarily causing the roadway degradation it's use so my direction is more pushing their direction of property taxes and and just leave the franchise fee as a as an additional source to that we can it'll the roadways can come out of that partially because that's our pool we have our big pool of money uh that we have various streams i just don't see the connection directly between franchise fees and and roadway repair i don't begrudge it but i just don't see that we need to like lock it in with an iron bar so okay um i'm uh there we go council member burr thank you uh mr mayor i am leaning towards the uh increase in city-owned utility franchise fees uh i appreciate the frequency that it's going to be awarded on an annual basis i appreciate the fact that there's no impact of the general fund as we've already talked about the general fund could be extended in other places that we really need to pay some more attention to um and especially if this is you know coming at the uh you know those minimal impacts to the tax rate payer um they are already going to be there we were we're already over extended with our property taxes and we're already going through a process to make sure that they stay the same or we lower them we go every year to make sure our property taxes are low so i just don't want to touch that uh the approximate 1.5 million dollars per year with uh you know some increase on that uh i think that in any area that we do look at we're always kind of looking forward to our utilities increasing anyway you know we're balking about that as well you know as a as a as a rate payer so uh but my only concern right now that you all have is no direct impact of the fy uh 21 22 utility rates i can just only imagine what those could be if we go this route uh what those would be after the fact so uh again increase in city-owned utilities franchise free i'm i'm more comfortable with that area thank you all right councillor maguire thank you mayor hudspeth um so my direction is um i absolutely want to see us um looking at franchise fees um i think in order to address the the shorter term needs the immediate needs i would be fine with an increase in franchise fee revenue allocation with the understanding that we're really just we're just taking that out of the general fund and we therefore need to find a way to increase revenues somehow i absolutely want to look at an increase in utility franchise fees i think that um i i don't see any reason why we should only look at city-owned um i think we we need to look at at utility franchise fees in general including private ones um i will email staff later but i think that we probably need a work session on that topic separately um to really dig into uh the details of our franchise fees but i think that there's a lot of opportunity there to increase revenue through franchise fees um and to council member beck's point i think we need to examine um other options for increasing revenue in general not just moving moving money from the general fund but increasing revenue um and getting creative about it so that it's not putting an undue burden on um rate payers and property tax payers who are you know living paycheck to paycheck um but that we are collecting revenue where we can and increasing that revenue so that's my direction thank you i would just want to make one point on the franchise fees as we have these budget work sessions any items like that that come up we'll provide you a full report on franchise fees and we've already discussed that on both private and public side excellent thank you yep all right uh so i'll i have a couple of questions and then i'll summarize we'll move on um so with respect to the growth of new roads and new additions i'd like to see that kind of i'd like to understand that better so my question is a new development comes on that new road then that would be built by the by the developer and then we would take it over and it would last some number of years right so but so i'm i guess i'm looking at what percentage of new roads aren't associated with that right like what new roads are we putting in as a city that wouldn't be text out roads wouldn't be i-35 wouldn't be state roads that's what you know am i missing something we're talking neighborhood roads it's going to be the developers putting in those neighborhood roads and that's how the lane miles increasing now another way lane miles could increase is we're doing bonnie bray and we're expanding bonnie bray that inherently is going to increase our lane miles so i think those are the two two routes there and also with impact fees the developer could be paying us impact fees to then go do the major roadway so i would just kind of separate the neighborhood roads which developer would do versus some of those major roadways which might be would be handled a little bit differently okay that may be something to look at going forward just kind of looking at that you know obviously we're taking back on roads that sort of thing as well so state roads that sort of thing so thank you and then if staff could help me this will help me formulate my thoughts the risk versus reward of starting and stopping so the out the plan outlined for the strategy is five years and then looking at it in the out years if i understand that right what's the risk of yes we're in for the first five years and then we'll take a look how do we regress a significant amount do we do we lose what we've gained if we take this approach and get the value take the value now we're already there we realize that value and then five years later we say we don't want to do it again what do we lose you know i think the risk would be if we don't want to be so reliant on debt that if we're hit with a big wall in a couple years and we haven't been able to maybe even build up a kind of sinking fund to some degree if we don't need it so if we have revenue funding if we don't need it that year we could at least put it into a fund and then use it as cash funding for a project as opposed to hey we have this need this year we have to go issue either additional co's or put it into a bond package so i think that's the risk is just how much do you want to debt fund your your ultimate road reconstruction okay thank you very much uh so here's you can go back and watch it and and there wasn't concise direction one way or another i think and so what i'll tell you is what i glean and then you can reconcile it against your notes i think really what i hear is the need to do kind of the bullet on the um consultant approach right and i think that starts with a question on uh some sort of survey to to this council looking forward to kind of set the base level of understanding that they can then come in and do the analysis on what the policy direction is from this body uh but it it kind of comes around um there's a lot of talk about increasing funds but the the the decision point and kind of the the discovery would be do you think you increase funds by raising fees or do you increase funds by lowering fees and driving activity in theory right i mean i think to understand where this body sits uh then drives that consultant next level next decisions um i think also in that in that uh kind of consultant phase you would then figure out uh where what the appetite is for a long-term look the complete street analysis but then last and i think uh something that's not been discussed enough is street reduction right do we want uh three lanes headed into downtown right and so once we take that street over do we want to do a street reduction enhance sidewalks etc etc so i think when you're talking lane miles and you're an analysis of how many we're going to remove or what the appetite is to remove some of those lane miles would be uh noteworthy when we're talking about forecasting forward you know because that's different right it's like we're going to build sidewalks and less maintenance going forward once we have that initial cost that sort of thing so i think really that that's what i've heard and then also um let's see yeah yeah yeah okay and then the only other thing that that i'll try to get your direction on and and and because we we didn't uh we missed it and i'll start and maybe that'll that'll get us going uh i'm okay with the initial five years right the plan that you've that staffs outlined uh i'm okay with the taking advantage of the economy of scale i think that's just going to be important i think if we're because everyone leading up to this point and said hey we're going to come in we're going to do your streets and then we're going to go away and so that's if we come in do your streets and then circle back because this segment this connecting street wasn't done then it almost gives the perception that we misled people and said we wouldn't be back right but it's it's truly like we're just doing these one also i think the the and and just the math works out right just the number and the value of street segments lane miles etc that you get uh the bang for that buck is is significant so i i support that uh and so my question would be is there i just need to hear from folks that do not agree with staffs analysis of the uh the initial five-year approach and and the the connecting streets taking advantage of that economy of scale if you do not um please just kind of make that known so that we can uh wrap this up so if you'll you'll have to use the button to to speak to say you do not agree with staffs proposal of the short term addressing the the connecting streets if you will so if you could do that um council member does that you to speak or that from before perfect okay thank you no worries just wanted to make sure uh so anyone that does not agree david anything okay great i'm not seeing any yes i just well i just one question and let if you're if you're moving on from that just want to confirm based on consensus from council for my hearing is nothing necessarily over the next month to change the fy-22 budget but have more long-term discussion than obviously there was discussion on franchise fee i just didn't know if there was consensus on looking at for the fy-22 budget or had those long-range conversations where we talk about property tax in conjunction with a consultant just to try to get to the fy-22 budget specifically was there anything yeah yeah and so if we could yeah just and restate your objective because i'm going to try to hold people to it and we're going to try to get to the next thing do we want to make any decisions over the next month and obviously we could bring them back in august for the fy-22 budget okay councilor margaret is as concise as possible yeah so in answer to that question i myself would would really like to have those discussions consideration of you know making some change in in this year's budget i understand that what that you know been hearing a lot of well i'm interested in this i'm interested in that i mean you know i am what i sense one area where i find agreement is that there's a kind of a lot of interest in looking into various options uh so i i would strongly welcome that all right councilor maguire thank you so to clarify my intention in expressing support for increased franchise fee revenue allocation and um a discussion about increasing utility franchise fees not just for city-owned utilities but across the board i would prefer that those happen in time to impact the 2021-22 budget because you know to my point earlier about the aggressive approach i strongly favor an aggressive approach i think that the longer we wait the more it's going to cost so we need to we need to to do what we can to to increase funding for these projects now councilor back i favor the the sort of aggressive approach that the council maguire was talking about in terms of the the road road construction but i also concur that i would like to see the options in this budget and not kick it down for another year so my my direction is is to include those options this year okay we'll bring back a discussion in a couple weeks um in one of our august follow-up meetings all right thank you very much that concludes item a uh that'll take us to item b which is id 211595 receive report hold discussion give staff direction regarding fire station nine good morning mayor city council kenneth hedges fire chief should only take me about 20 minutes here okay starting again mayor pro tem i'm gonna ask you use the word you used earlier about we need to prepare for the future so today that's exactly what i'm here to discuss so i want to kind of go over some brief data on our response volume over the past few years and talk about a future fire station nine and then we'll go over next steps so this is no secret to anybody on council and population it's here it's coming and if you look in the next nine years now prediction of almost 60 000 additional citizens to city as well how do we plan for that and what are we experiencing now on our call volume for the fire department this is our total calls for service this is just one metric we use on measuring operational use of vehicles and personnel it's a lot of data here kind of going through 2015 through 2019 our average growth was just 5.8 which is significant if you actually look at 2019 there and we saw a significant growth there we really didn't have anything other ordinary nothing covid whatsoever it's just the call volume has increased 2019 going into 2020 with pandemic we actually decreased obviously that was to be expected the interesting note on this in 2020 through june through november we actually had a higher call volume for those months in 2020 that we did compared in 2019 so even with the pandemic present we're call volume is still increasing as well so we're trending in 2021 is 18 000 calls for service and i did back out a thousand calls for the winter storm uri knowing that was anomaly so removing a thousand calls we're still predicting to have the most significant call volume our department has ever seen and then just going back to 5.8 growth calculating 2022 to 19 000 so i'm being very conservative on my calculations slowly for council in case you are not aware of our current fire station locations we have a map here and each station is located with the dot and the number that correlates with it the most recent one is the opening of station eight there in the southeast portion of the city we opened that in march that is the first station that has increased our response enhancement since 2013 and that's when station seven was built in the southwest portion of city so we had identified in southeast portion of the city that we had extended response times and call volume was increasing so over the time that station went in service in march we've seen the effect of it relieving station six there to the southwest and also station two up to the north busy slide i know this i really won't kind of just focus on a few different bars here so if you look in 2018 station one is in blue that's downtown station the station six is in our south portion of the city you see that was the two busiest districts and we're saying districts because it doesn't necessarily mean the vehicles in those districts it's the district as a whole so then we go over to 2019 station one's still busy station six decreased some because we actually had district eight was developed and we had placed the amazon service in partnership with denton or medical city denton we had a lease agreement with them so we put a medic in service that year and that was able to offload some of the calls for station six but what was really kind of sneaking up they really kind of caught us off guard was look in the red here this is station five's district which five is located up bonnie bray and winsor as well so without us really paying attention closely they're starting to sneak up and actually get more calls for service so what's really alarming is when we go to 2020 and there were only 36 calls behind station one is to be in the busiest district in the entire city the difference between station five and station one is station one has three different apparatus assigned to make calls so they have a little bit more resources versus station five only having two so where we're seeing predicting trends for 2021 also as well and it still removes some of the calls for service from the winter storm urey is they will be the busiest district in the city and their average average around 2600 calls for service for 2021 as of right now so what does this create it creates response challenges everything's tied to our time how quick can we get there how quick can we deliver emergency services i'm just pulling a few things like that obviously as dent high school develops we've seen the development coming up along bonnie bray and winsor as well there have more calls for service in that area and then raising ranch as well response times are increasing that's just there's no options around that with traffic build up around 380 quarter or university our crews are having challenges getting out to the west and the next thing is once these units are dedicated to calls and other calls come into the district we're having to pull from other areas of the city into station five's district and i'll label just the primary stations if available it comes back into five's district and just as a map there's a couple of things here i won't point out this outline here is actually the current district for station five and you can see there's a lot of miles within this district some this is undeveloped we understand that preparing for the future we know the growth is coming as well specifically out here on western 380 also this is just a heat map of station five's district we want to keep it simple and not show you the entire city as well you see the hot spots is the university and 380 corridor this is hinkle one of our big consumers is obviously nursing homes and assisted living centers so you get down hinkle i cannot explain why on 35 this area is other than i guess there's a lot of nva's that area i'm assuming and then we're 77 connects 35 here as well so what happens when a call generates here and this unit's already committed so we're having to pull it's just based on gps also as well whether station four station one or station three they're all having come back into this district to make coverage of these calls and you saw from the bar graph one is the busiest district three is right behind and four is actually increasing call volume as well also while we're on this slide i want to just point out so the proposal here a discussion about a future fire station nine would actually be located at the edge of the airport so right where airport road terminates into the airport so we went ahead and included a dot here so how do we measure success there's several different ways nfpa national fire protection association standard 1710 which it's right there i'm not going to read it out it's a long title for this document it's a recommendation i won't be sure and be very clear that it's not law it's not a mandate but it's a recommendation it's the best practices so they identify what is the effective response force the goal is is to have one engine and this is on fire calls arrive within four minutes 90 percent of the time to all incidents that's a significant goal and it's a hefty goal as well second one is they expect a full alarm assignment to rely arrive within eight minutes travel time to an eight percent of incidents right now if they didn't fire department effective response force totals 19 different personnel on several different pieces of apparatus we have one ladder truck for the entire city so i can assure you one ladder truck will not make it to the outskirts of the city within eight minutes so once again this is a goal to strive for doesn't mean we're meeting this today but we all need to have our benchmarks to work towards in the bottom right of the screen i won't just kind of show what is our chain of events when you have a mercy call i used fire here you could overlay a mercy medical incident just any type of emergency response fire department responds to so on a fire call you get the ignition from the ignition from the time that it's actually witnessed by a citizen and they make a call into our dispatch center call received until alarm that's actually our dispatchers how quick can they get the alarm turned around and dispatch the units alarm to turn out turnout time is how quick can our personnel get dressed get in the vehicles actually start moving towards that incident and then arrival so arrival time how long does it take to go down city streets to get the allocation where is the closest fire station net are those units in service are they out of service as well and the rest just depends on the type of incident how quick can get one on fire how quick can you get the fire under control as well so let's talk about station nine this is a unit that was purchased almost two years ago it arrived past december so this is one component of a fire station at the airport as well this is a huge resource our fire department we've never had anything like this before this is a aircraft rescue firefighting truck carries 3000 gallons of water 400 gallons of foam and is able to be operated by one personnel in the cab with two different turrets this right now is being housed at the airport unmanned in a spare building on the south end of the airport grounds a little bit about den air enterprise airport so this shouldn't be a surprise to anybody i just want to kind of highlight everybody knows how busy they are so that their eighth business airport in texas second for contractor towers i want to also point out here in last year they dispensed over 1.4 million gallons of fuel and just to be clear our closest fire station right now is station three which is 3.3 miles away so you're averaging about eight to nine minutes to for that unit to arrive at the airport so that's a lot of fuel to be dispensed with resources not in close proximity and the last bullet point is denna enterprise airports only two of the top 10 business airports of texas does not currently have a fire station the other one is a private airport in houston so we commissioned a consultant to do two different studies and this is just a highlights from in february 2020 ash presented city council standards to cover this is part of our accreditation process where we go through all the hazards in the city and the consultant left us with numerous different recommendation recommendations which several were implementing right now it was just implement a new fire station in the future to address really your deficiencies on the western portion of the city and we went back to the same consultant to really look at coal hunter ranch there was a demand stay there's like that full build out what would the fire department's footprint look like in that development and through the course that we want to relook at the airport area in the industrial as well so with that you see in march 2020 a second recommendation again that they're recommending a future fire station in the vicinity airport road and wash branch so let's go into just a little charts here we have all seven or eight stations identified if you look at the dark green right now this is tied to the nfpa 1710 standard i just mentioned the dark green is four minute response time that equates to about a mile and a half response time the light green is eight minutes so if you look in station five's district everything on the eastern side of 35 they can get to within four minutes and i also want to point out so you're going to see some areas that's not covered this is only by current roads there's that's the only way you can calculate the current infrastructure so i really want to kind of focus on the western portion really we don't have with exception a little slice here on 380 we don't have anything that can get outside 35 to the west within four minutes so if we add in and drop station nine at the airport what would that look like well this is going to be your new four minute response time so you do have coverage for the industrial area going up onto 380 and probably the most significant slide is this next one so a new fire station at the airport which would be labeled station nine would actually this would be the new eight minute response time so how much can they come back in the city within eight minutes and you really have all this covered now the big thing is offloading the work of these other units and other stations haven't come into station five's district so station nine this was a exercise we had completed in 2018 by local architect is just a fit test there's land identified right east of the airport terminal this is airport terminal here this is airport road work termination at the airport so we had the architect really kind of do some very high level planning on what would a station look like and would it fit so results is about a 13 000 square foot station would require to be two story that's the only downfall to this is the fact that the footprint is not large enough to go out you're going to have to go up so primary response for station nine obviously didn't impress airport we have the capabilities to work with airport and become part 139 compliant under faa i know they went through other exercises and purchases and acquisitions to actually develop everything for part 139 i'm not going to go into that because it's very detailed i have some as far as fire protection but it's when you can actually deliver schedule passenger service to that airport fire protection is a very important component of that so this would this station here would actually allow from the fire protection side capabilities for part 139 airport industrial area we know the area has grown out there as far as big box warehouses various things of that nature in the new development biggest thing is western quarter of 380 we know that's raw land out there that's where developments coming it's happening right now it's no secret and the closest unit now station five going through the traffic on 380 trying to get out to the western section of our city interstate 35 is a backup and then the big thing is a backup in its station five's district what i've pointed out is the growing concern now so what the station look like really from the time we kicked off from design it's going to be a 30 month process so if funding was there october of this year you're still talking april of 2024 before the station could actually open so with anything it takes time i think the last thing i just want to point out here is design opportunities really whether you want to do a heavy brick and mortar like other stations or if you want to kind of match the area in the airport hangars is more of a metal clad financial i don't know if you want to say anything or not though finances added three quarters a million that was the estimate given to us by facilities working with their consultant on the needs to go through full design and get to notice to proceed and construction expenses are planned in fy 2023 staffing what we propose on that we've been successful two different times on applying for the fema staffing for adequate fire and emergency response grants which is titled safer in the past that was a cost sharing between the municipality and the federal government for the past two years with covid specifically they have changed that words 100 cost sharing by the fema and the federal government so for three years they will pay for personnel at 100 cost at the end of year three on four that's when the city takes over 100 so you really have fte's free for three years so that would be an opportunity for the next two years and you look very favorable on safer grants if you're opening new station or if you're expanding your resources expanding your call capabilities you get graded higher on safer grants and then the last thing is potential of cost sharing of construction and future personal costs with muds currently right now we're in discussion with two different ones on the west portion of our city and i'll have a map here right next that they would like dentin fire department city dent to provide fire and emf service to them with that it's going to be a cost not just on cip but also the annual operating cost for personnel we added just to kind of show you awareness out here on 380 where i said our times are outside our industry standards is we're currently in discussion with two here in this area and these are more that's in the emphasis stages right now planning that you know there's a possibility to partner with others and increase the amount of funding that would actually go towards fire station 9 at the airport that's really it trying to be quick next steps purchasing is working on a pre-qualified architect list that's rfq upon approval on that you go in and select architect based on the project and scope negotiate with that architect and then move towards design of a future fire station the big thing i want to commit here is return to council with design options i know we did that on station three we brought back two different options and really we solicited feedback from councils what do you want that station to look like as well i mean staff can give recommendations all day long but it's really up to you what do you want that to look like in the community and that is all i have got it thank you chief and david and if you whatever your normal comments are you know what those are but then also if you need direction what is that it doesn't read like you need direction that's going to come back to us but if you if you need some guidance from a policy perspective some of it will come back to you in the next presentation as we look at the cip so certainly that would be a great opportunity as well and we'll bring it back i just wanted to give a little bit of context on why you're seeing this today you know typically obviously we would be looking at fire stations with bond programs as they as they come forward knowing the needs at the airport and the other needs that the chief laid out said do we want to start thinking about this sooner or at least bring that to council and then the last piece that he mentioned on the muds play play a big piece into that we've been having these negotiations with the muds about providing service and having them give us significant capital contributions toward a fire station so it opens up this possibility where we can actually have them give us the funding not only for operations costs moving forward which would be part of the contract i've actually paid for salaries and everything in all the regular operations costs but also capital contributions that we can build up to help pay for the fire station itself so that's why we're bringing this expedited conversation and if count as we go as we have this conversation with council what is contemplating the budget is we start at least with design next year but that's seven hundred fifty thousand dollars we have those conversations with the muds which you'll be seeing as they come forward for agreements see what we really need as a capital investment in the out years and come up with a solid plan to give some context for why we're not just saying hey let's just wait for the next bond program for this that's what's really driving that conversation so i know the chief touched on that but just wanted to give a little bit more context okay okay so what do you need outside there'll be questions but is there any direction you need from us with respect to the that initial look at it or do you already have that budgeted well we have it in the proposed budget seven hundred fifty thousand dollars if council didn't want us to move forward that obviously that's something that could be removed over the next month but that's essentially a direction right now yeah but you have everything you need other than if someone wants to remove that they need to step state that correct yes perfect thank you uh councilmember maguire thank you mayor um i think we've my opinion is that we very clearly need to move forward with this um and it i'm very surprised that we don't already have a fire station at the airport that's a very clear need um a question will hunter and coal ranch have their own fire station are they going to be served by number nine are they going to be served by number seven in the beginning they'll be served by fire station seven it's in close proximity but we have worked with the developer to identify two different land parcels within that development at certain trigger points that we will have to have at least two more stations at full build out within the coal hunter ranch project combined okay all right thank you that answers that question um uh so i'm just looking at at the call volume chart that you provided um what are what are some of the typical causes of calls would you say that a large portion of them are traffic accidents um or like like what types of things trigger yeah i didn't go that in depth on that back and just walk you through this so 65 to 70 percent on average is ems calls and that's standard across the u.s now you know there's fire based ems there's private ems it doesn't matter the majority of work that fire departments are in do now is ems okay um fire true fire calls only counts for about three percent of a call volume but that's confirmed working fires that the crews go in and have to extinguish it as well you have so many different other types of calls yes you have motor vehicle accidents you have service calls fire alarms going off sprinkler heads broken medical lift assist somebody slipped in a nursing home and they call the fire department to come and help that person up that counts as a total calls for service as well so we have a wider range i don't have it in front of me but our call types on how they're coded if they're in the 60s or 70s and the call types we possibly go to okay all right thank you um and so you know we see you mentioned station five is really increasing um they had uh 2,483 calls for service last year um what would you consider the maximum call volume that a station could handle in a year safely there's standards out there that when you start getting around 3,000 that is considered overworked that unit the thing that's misleading about this bar graph is the fact this isn't the exact unit this is the district so we would have to dive down deeper to show exactly how busy that unit is and it's not this busy we did actually look at that but that's where i show on these other states to have to come and do that backfill there is some data you can actually dive down deeper unit hourly utilization so that goes down to each individual unit how busy are they over the course of a 24-hour period and you can see where they peak i mean we have done the studies where the busiest time for the fire department is wednesdays at one o'clock in the afternoon so don't drive stay in your home wednesdays at one okay but as every fire department as every department here starts going to more data-driven decisions we're starting to look at that and we're starting to dive deeper as well and we're going to be able to shift some operational decisions based on this data as well okay thank you thank you mayor chief i just following straight from that i mean i i love the the the data you presented you get the award for the this afternoon for me for data presentation particularly the heat map the the couple questions um is the the i guess that was like slide eight the heat map for that you showed for station five is that data available for the other stations that you could just shoot to us at some when you're when you've got time i don't think it's urgent but i think it's i mean you were clearly able to make a lot of really salient points with that heat map and and i think it would help at least me make decisions supporting your causes and and you can you can see you know the same thing that councillor McGuire is saying that we we have a clear lead so you know my my direction would be to move forward for the chief um but uh i had a sort of uh so on top of that can we have all the heat maps uh if you look at that slide six the previous one the district call volume we also had um station eight pecan creek area also seemed to be like you know just growing like crazy and i know you said you had uh um uh agreements with the the surrounding area but are are we going to is it is it your guess that we're going to be having a station 10 discussion uh about pecan creek because i mean it's essentially the same sort of argument that you're making for station five that's sort of starting to be overworked well that those charts are going to go up too do i anticipate a station 10 for pecan creek i don't envision a station in that direction pecan creek you're talking about to the southeast portion yeah it looked like the the station eight brown chart was like whoop just really exploding compared to uh to some of the others and we expected that we expect from the day that unit went in service first was the ambulance and then two or three years years later when the station actually went in service we knew that would take immediate workload off of station six this station was getting overworked they were anywhere from you know average 10 calls up to 15 60 17 calls a shift where you were just going from call to call to call you obviously have some breaks as well but with that you were seeing station three here having to come all the way down into six's district and that just kills our response timing right again that's how we measure success it's sometimes it's down to the matter of seconds whether we're success or we fail as well so we knew that location of station eight you know it's funny that you bring consultants do all the study but i can tell you i remember the fire department for the past 10 years saying we need a fire station behind medical city didn't and the consultant comes in does all the reports go you need a fire station right here it's like well we knew that but it's helpful to bring in someone from the outside to confirm this as well so we knew when we flipped that switch and we met live they would immediately relieve station six and you can see what they have and this was only just the ambulance this isn't the engine and service also and once again this is about the district so if we actually was to break it down into what did the fire truck and station eight do compared to the fire truck and station six we'd see it's more balanced okay and we envisioned that eight should you know that here's our city limits it was intended to cover all the way to the city limits and we never have to put another fire station in this area because it's nearing full development there's just running out of land there um i can just tell you from what i've seen also there's a little concern about station six's district but we expect when the construction of teesley's done it moves from two lane congested road to a six lane more arterial highway we should be able to increase our response times just by being able to maneuver around traffic so what our focus is right now we kind of always thought it's going to be the coal hunter ranch and what has really popped up is up here on 380 that's just kind of caught us out of surprise with the muds and i understand they're on our sea limits but they're in our etj as well but that's also a very good opportunity for us to actually collect some revenue and help offset some of those costs of station nine that's directly on pack every citizen in the western portion of the city so i'm glad you're bringing it up because that goes straight into my next question it it seemed like a lot of the the argument is um that uh especially an answer to council maguire's question that we're going to get these i think you said two new stations in negotiations for hunter coal which will also similarly relieve residential ems and we'll be able to extend the response time out into the muds as well um so i guess my question is is station nine do you envision it more of an industrial response station rather than a residential station servicing west park and the airport or do you see it as a mixed station it's definitely a mixed i mean if it was open today would be structural firefighting ems and also arf which is airport risky firefighting so they would actually have more responsibilities than an average fire station or city right now we understand there's not as much residential out there in this area right now we know there are some departments there on gem crystal as well so it's just what opportunities comes up on residential and it's really just primary response to the airport industrial area that's really trying to relieve the call volume up here on 380 they have direct access up to the north they're able to run 380 either west or east back in the city and you saw the hot spot was right there at razor ranch 380 and you're in 35 so they would actually be the second due which is the second unit called more than likely in that area and so if you envision more of a hybrid does that go to and this is the last part of my last question is is does that go to more the cut you ask should we do it more like a hangar airport or should we you know my question is if it's a hybrid should should we be looking to you know outfit you with with standard trucks standard ems standard everything or should we be looking more to outfit you with specialized industrial response vehicles and specialized buildings and it's sort of your weird odd man out industrial station you know which way do you envision us needing to explore that for you really what i've been on as far as the kind of give a look of the airport hangars just the visual outside of the elevation of the building as well so it's just the aesthetics is what operationally it is going to be a pure structural it'll be operate just like a normal fire station that we currently have with exception of they'll have this unit as well so the crews will actually move back and forth based on the type of the call if it's a call that generates at the airport there's a plane coming in with an alert so having engine trouble that crew would move from the structural engine over into this vehicle right here as well so we're doing that every day right now our brush trucks where we go take them grass fires they're not manned so our units are having or people are having moved from structural engines over onto the brush trucks as well it's just something we've done for years and years it's just you don't have enough staff you don't have enough call volume at this time to dedicate full time personnel for the specialty vehicles it's something we do we have in our back pocket we have those capabilities but we don't have the staffing full time and that's really kind of multidisciplinary is how we train our personnel awesome thanks chief i appreciate it council member armature okay so just a few points of direction quick question i definitely support this there's an obvious need for it and i i really appreciate the data here about the justification of the location etc i'm really happy about the plan to have muds subsidize this so thank you to whoever has been working on that and making that happen i'm really happy that it's going to happen that way as far as the aesthetic you know for me when it comes to you know fire station the functionality number one but you know if there's a way to have a kind of metal like building that would match the hangars that would be aesthetically pleasing maybe save money to and also be something that you know most importantly that's not just functional but that's a place where you know firefighters who have to work there every day like like coming to work and feel that it meets their needs so you know as far as the aesthetic you know i'd be interested to know if if fire if firefighters have any input you know on on this what kind of i don't know if a formal survey would be a good idea but just to kind of see what firefighters input is on the aesthetic you know functionality maybe concerns about maybe have it be an anonymous surveys you know people could put in their concerns that they might not feel comfortable expressing in person that would be that would be great to know and and my question is about you know how will the introduction of this new fire station move us closer to or maybe further i don't know away from the standard of recommended standard of four firefighters per vehicle you know i realize that that's not a requirement but it's a standard for safety it's one that i support so if you know everything you're describing shows that we not only need more physical infrastructure but staff is being spread thin right so i was just wondering if you could speak to that sure ashley the nfpa standard i referenced 1710 where i pulled the information about four minute eight minute response time that's actually where it recommends four person staffing as well so that's something i support but it's not to the point that i can support it in front of future stations to decrease response time so what we have done internally since we don't have four person staffing we send additional units to just one alarm assignments so you still get the amount of bodies you need on that incident they just not may not be on one particular vehicle as well so as we look at the city trying to find the best map as we look at the city and we see that we have deficiencies here on the west side of town to me at this point in my judgment call it's better and it's more sensible to add another station to get units to a scene quicker first even if there are just maybe three personnel versus four versus adding staffing to these existing stations so to answer your question yes it may be delaying that ultimate goal the 1710 recommends is four person engine staffing they also recommend five person truck staffing as well so they have different type of recommendations on the vehicles as well but right now the emphasis has to be on response time how can we decrease decrease that in the ultimate ways to put more stations on the ground put it close to where the mess will incidents and fire calls are happening as well so i hope i answer that so you know i'm a big proponent of four person staffing if you can do it and right now that is second priority versus a new station to decrease response times yes absolutely and i i have no doubt that this will decrease response time okay uh count and probably mayor pro tem melton yeah thank you uh chief i certainly uh agree with prioritizing response time i know that i've heard information from uh you all in the past about the difference between responding at four minutes versus five minutes you know but how quickly uh you can have total loss and and uh you know more severe injuries and loss of life uh my my question is about the mud funding and i'm not sure if the question is more for you or for david i think it's a uh makes all kinds of sense uh i'm curious about what are uh how much control we have over that with these deals that come up and and actually before you switch uh positions uh do we wouldn't we also expect that that whether or not we secure that funding that will be expected to meet their their fire needs through interlocal agreements with the county yeah i answered that one so currently there is just a standardized mutual aid agreement across all of dent county so if another jurisdiction needs assistance they call if the other jurisdiction can't provide it they can't they have the ability to say no there's certain times we've had say no also i can tell you i don't have the stats in here we provide way more mutual aid than we receive so when we're talking to these muds out here in the western portion of the city you look and the city of crumb is closer i can tell you the city crumb has a fire today we're going and sending mutual aid as well so it's kind of one of those things it's like okay they could collect the revenue from these muds and then call us and get our services for free under the mutual aid agreement or we can negotiate with these muds also provide full protection coverage and we can write it write that into the fire protection plan what benchmarks do we want to set as well and that's part of the negotiations they don't get to sit there and say you've got to be here within four minutes that's what we decide as well i mean we're the industry experts on that it's not going to be four minutes in probably in the first five ten years do i envision a station out on western 380 in the future yes i absolutely do i'm not going to sit there and say that i don't see that happening i don't know what the trigger point is at this time yeah but i'll let david answer the other point but yeah we're i mean right now it's kind of a blank slate on what we want to propose with these muds as well and like i said it's two different components it's the normal capital to put buildings on the ground and the biggest thing is it's an annual o and m it's that personnel cost they're covering as well and just from the little bit of information we've learned about it's really it'll be a fire tax upon the people living in the mud so it's going to be passed down to the home buyers you just know that's the way developers operate as well especially these muds so they'll be paying for fire services so we will be you know if we come to the agreement and council votes us we will be providing just the basic services to them and they have basic expectations like every citizen in the city as well i'd be interested to hear whatever you want to add david i i think chief answered answered it pretty well i as far as what where where are they coming from why would they want to enter into the agreement what would yeah what's our degree of control or leverage well you know if we don't they could go with you know i don't want to another city right a smaller city and try to have an agreement and then rely on our mutual aid but when they're talking to you know they want to it's in their interest to provide strong fire protection and have strong response time so we're able to offer that in ways that other entities aren't so i think that's it and as we're talking with them that's what's driving them is they see the benefit of having the city of didn't be them have resources for them thank you councilman burt thank you mr mayor um oh i have a couple of questions here um does the number listed here on page six the district call volume is those numbers are they true numbers for one four and three do they include the response to district five no these are the districts so we outline the district like on the the heat map right right here so we've outlined the district so this is five districts so any calls that generated in this is what's going to be reflected from that bar graph okay so but i was wondering you said that three four and three four and um one three and four sometimes they're respond you know they respond over to five are those numbers reflected on their on their lines or did you pull those out and put those out these are strictly this is not by the units responding to other districts this is strictly the hard district lines okay so station three districts in the unt 35 McCormick area so what you see here for station three even though substantially that's district three is really what we're doing it's district call volume so within those parameters those boundaries that's how many calls originated for each year their origination that's when i guess the word that i'm looking for uh and also uh you mentioned something about and we have one ladder truck and how far does a ladder truck how many floors can a ladder truck so we have a 105 foot ladder truck it's um at station one we do just to be accurate we have a second it's not called a ladder truck it's called a quint kind of go into this it's a fire truck with a 75 foot ladder on top okay and before my time it was positioned at station five so you have a bigger vehicle going on a higher number of calls that should not be going so when this is all worked out i envision putting just a regular fire truck at station five they don't need to be running a fire truck with a ladder on top extra weight so we have 105 foot ladder downtown and we have a 75 foot in the northwest portion of our city okay a contract tower what is a contract tower i know that i heard that uh from um the airport a contracted tower a contract is contracted tower yes that was probably by scott garrion that's an airport question i guess i'm sorry there it is it just came up in my good morning uh scott gray director of airport and facilities in a contract tower is a program that was instituted by the faa so you have faa run towers and then you have contract towers which is third party the faa pays the third party contractors to to run the tower for them at various airports we happen to be um one of those entities in the state okay so contract tower like literally a contracted tower contracted by the federal government okay by the federal government okay uh and i believe that is uh you know just all my all my questions for the fire department i'm very i used to want to be a firefighter when i was a kid and as a grown up i said after i became a police officer my next thing was to become a firefighter to get all of that in but i decided to be a teacher instead so maybe i'll go back to that are you all hiring old retired ladies with gray hair okay i have something to offer you later on okay thank you thanks all right well uh so summarizing i think there's consensus to move forward with the plan i think from from my perspective i'd like to make sure it's i know it is but just to echo that to make sure it's holistic in that i know we're looking at and i may get the station number wrong the hedge was high on on on google google maps i think it's six there behind the library correct right yeah and so making sure we're we're incorporating a future look at that maybe especially as we have the federal dollars come in i don't know if they apply but just making sure we take a holistic approach that if we need to sequence station nine and kind of forward looking to get station six adjusted because at the same time we need to adjust where the library is at some point so just kind of a holistic approach to that so that we can get those parts moving at the same time if possible that would be that'd be important to me then i'll say um i really like station nine for another reason you didn't add but i i would encourage you in future slides the the loop 28 expansion you know because then that's just going to be more industrial behind there that's going to happen pretty quick uh so that's noteworthy to me my question would be uh does this affect the argyle agreement we have i don't know that was before my time but once nine is in place does that affect our argyle agreement or would we wait until the other stations in the hunter coal ranch come online it we would wait um the argyle agreement with dent county mercies herses district number one i think they're full title now it really just applies to the ropes ranch area got it since they have that station now they're less than a mile from the front gate so i think that agreement went into place 2018 it's a 10-year agreement it is able to be renewed so as we get closer we'll look and see what the development is in the coal hunter ranch see if it's time to commit to a station in that area you know in the future i just can't speak for the argyle fire service but i think they didn't realize how busy they were going to be when they signed this agreement so they saw the financial benefit to help fund that station but they're going to relative ranch one if not multiple times every day as well so it's impacting their response area and their developments also okay great and then um from a just looking forward um feedback perspective as well uh i i like the negotiation with the muds i think that really would be i'd like to see us kind of mirror what we did with little m i think the 911 operators and and maybe a shared cost with the radios to help offset the motorola's cost that sort of thing would be ideal for me obviously i'll you know work through that but that's just my thoughts and then i'll leave you with uh an uncomfortable moment so i'm at a meeting and someone uh offices near the uh new fire station eight and they express their appreciation for your your fire staff washing the trucks as they look out their window so i was like oh okay well i thought we're going down i thought we're talking about how busy they were glad they were there to serve you know to do something it's like no it's great when they watch the truck out front i'm like all right got it they can go quicker than clean the vehicle yeah so uh well very good well thank you very much great presentation thanks everybody all right and so let's it's 11 28 we do have kind of light food in the in the in the hallway there uh so let's do before we take up the last item let's take a um let's call it 20-ish minutes so we'll come back at um whoa um let's come back at 11 50 and we will finish uh the rest thanks welcome back to this meeting of the denton city council it is 11 27 uh still the second of august and we're on to item c our last work session item and that's id 211087 receive report and hold discussion give staff direction regarding fyi 21 22 city manager's proposed budget hello mayor city council cassie ogden director of finance here to discuss the proposed budget with you um before i get started i do want to take a moment just to um thank the finance team and for their really diligent work over the last couple of weeks it's been a long a lot of long nights and um some weekends but we made it to the proposed budget i also want to thank all of the department directors and their staffs for their help in putting together this proposed budget we couldn't have done it without them as well as the city manager's office and giving us direction on what they want to see um as far as with the proposed budget so i just appreciate everyone's work to get to this point and with that i'll kick it off so today we're going to go over just an overview of the budget process some of the assumptions that we've built into the proposed budget as well as our tax rate and revenue assumptions an overall picture of general fund in our five-year forecast a look at the internal service fund and special revenue funds we'll go over the utility budgets and then talk about next steps and so this is a slide you've seen before just kind of a brief overview of our budgeting cycle here at the city it really is an all-year-round process we are constantly in budget mode so october 1 kicks off our new budget year in february typically the city council has their retreat to set priorities for the upcoming budget march we kick off our budget internally with our departments and they start making plans for upcoming budget they submit those budget and it goes through a review process with the city manager's office as well as the finance department and then in june and july we present those department budgets to you and here we are august for the workshop with the budget hearings and the tax rate hearings as well as adoption in september so a bit of review the compensation and benefits we've we've talked about this a little bit before but just as a reminder we do have a three percent cost of living adjustment in the fy 22 budget future fiscal years 23 and beyond have an average of three percent merit increase programmed in we have no changes to our city contributions for our health insurance as well as no increases to employee contribution rates in this fy 22 budget the retirement tmrs rate is it went from 17.79 percent to 17.65 and our fire pension rate remains the same at 18 and a half percent from previous budget years so just some assumptions for the general fund we have seen a 7.88 percent increase in our assessed values from last year that's a 7.3 percent increase in non-frozen values so overall 7.88 once you take out the frozen values it's about 7.3 percent we have we in 22 i will talk about in just a minute the the proposed tax rate that we've assumed in the proposed budget however in 23 and beyond we are reducing that mno tax rate to score correspond with increase in ab values so the debt service portion of our tax rate also called the ins rate we did increase it about a half a percent half a cent excuse me in fy 22 and that was part of the anticipated plan with the 2019 bond program we've had those discussions several times throughout the the last year two years because as we issue more debt we knew that that rate was going to have to increase to to fund that those programs and so the mno portion of the tax rate it is decreasing by about a half a half a cent in fy 22 so we're keeping our our proposed budget includes a total proposed tax rate of the same tax rate as last year that 0.59 with our sales tax we have seen about a five percent we're we're estimating a five percent increase in each of the years as well as the franchise fees we've already discussed in depth earlier 80 percent of the revenues are transferring to streets and 20 staying in general fund with a three percent escalation annually and so this year came with its own unique set of challenges last year we had certified estimates at this time instead of certified values and this year we have a change in the tax rate calculation with which has caused a lot of problems for us and we're hearing from our from other cities around the state that we are not unique in this that a lot of cities are having similar challenges so we do not have a certified tax rate yet from the county we are still going back and forth on how that rate should be calculated because initially the the rate came in at substantially lower than what we expected to see and we just know it wasn't correct so we're still having those ongoing conversations but you can see this is kind of we calculate our own what we call the no new revenue rate so we we do that in finance just to kind of make sure that what we're getting from the county lines up with what we would expect it to see and so i've added that just very high level calculation for you this is the calculation that we're getting for our no new revenue rate again this is not certified by the county this is our own calculation this was subject to change as we continue those discussions with the county but that 0.375 is what we're calculating the mno rate of the no new revenue rate to be and so our appraised values so you can see the total certified appraised values is 14.4 billion and that does exclude all of the ters so again that 7.88 percent increase compared to last year that i already talked about um we've had 820 million increase in value and you can see the breakout between new value and change from existing properties and then just overall when you take out that frozen value 7.3 increase and then average homestead value did increase from 248 000 to a little over 275 000 and that's something that we look at every year and i'll get i'll get we'll talk about that more on a future slide so just another way to look at the assessed value history just kind of a showing you our property growth over the last several years and so to talk about what does this look like for the tax rate as part of the proposed budget like i said we are keeping the same overall tax rate the the 59 cents however with you know our average taxable value increasing the average tax bill does increase by 96 right now and that is with the increase that a debt service rate but a decrease on the mno rate so overall remained the same however with um with increasing tax values that that is an increase the average residential bill so again we're using an average so there are going to be people on either side of that average that some will see a decrease some will see an increase that's just the average taxable value and so you can see our sales tax this is a really a history of our sales tax along with our current estimate uh nine percent above um the the 2020 rate and then we're projecting a five percent increase next year in 2022 this has been good news out of covid our sales tax has remained strong through covid and into the recovery so so good good news for the city and here is the five-year forecast for the general fund and i will walk you through some of the parts i have additional slides to kind of go over those one-time expenses and the supplemental requests those reoccurring expenses in future slides but just high level total revenues of 150 million we do have reserve targets of 20 to 25 percent in the general fund so you can see that we are remaining steady and slightly we're forecasting to be slightly above that target this year in fy 2021 and so a couple of things to note on this slide um we are our ending fund balance in 2021 really does carry forward over the next couple of years and helps us remain above that or in the middle of that reserve target range of two and a half percent um if you'll recall that in 2023 that increased roi from dme does decrease that's one of the reasons you're seeing that negative 2.877 million so the more that we decrease this year so if we were to reduce the tax rate this year you're going to see that that negative go up substantially next year so it's really kind of helping us level out that um that decrease over the next couple of years i'm going to talk about the reoccurring expenses on another slide in the one-time expenses but overall this is with the proposed budget our five-year forecast for general fund so again just another way to look at the proposed budget and all of our revenue streams property tax obviously the largest portion of our revenue along with sales tax is the second largest and then third is franchise fees that we've already discussed um we also you know there are other fees and fines that we collect as part of our regular operating business and then also transfers in from the other other funds and then just a look at expenditures by category these are some of our main kind of category expenses in the general fund so you can see general fund we are heavy on salaries that is the majority of our expenses personnel services along with our other types of regular operating expenses transfers or other transfers from general fund to other funds maintenance and repairs materials and supplies and then you can see those those supplemental packages right there in the gray pie slice so just to recap the one-time expenses the um if you'll recall on that the previous slide you saw the suit to 7.26 million dollars and fy21 so because we were um the general fund was is forecasted to be much stronger this year than we originally anticipated and budgeted we felt like um it was a good time to use some of these to pay for one of these some of these one-time expenses that are not reoccurring expenses that are not going to roll into future years um and so excuse me so you can see overall fy21 we had a total ask of 7.5 million and that impact the general fund is 7.26 million and that was built into that five-year forecast that you already saw so library having um conference room and study room addition security cameras um service desk replacements we have a debt management software that we're purchasing or requesting to purchase in finance a walkability study for development services um and then several technology replacements for tech services as well as you can see our 311 equipment the capital funding i do have those broken out into the capital in the capital funding presentation so if you don't mind i'm going to wait to talk about those in my second presentation and so with that we'll go into the supplemental requests so total supplemental requests in the proposed budget is 2.2 million with council council initiated supplemental requests of 130,400 and then we do have internal service fund requests with a total impact to general fund of 475,000 and so you have seen all of these already in the department presentations this is what the directors presented to you um and so you may recall animal services is asking for an animal control officer libraries has asked for reinstatement of some of the positions that they lost during covid fire is asking for a reoccurring um hose program for um their fire hose replacements and then the emergency management program manager you may recall from our arp discussion last week that is 50 we have it programmed in 50 funding from arp and 50 in the general fund because that arp funding does go away after two years we've added the police positions that chief dixon previously discussed in his department presentation as well as that street outreach positions that will be half funded through arp as well community development is requesting two new positions a neighborhood services coordinator a housing services coordinator municipal court is requesting an assistant rep two that that position was lost during covid as well internal audits requesting an audit intern so a half time person as well as a citizen survey through public affairs and the city manager's office is requesting a records management specialist parks is requesting funding for their maintenance program so you can see those two lines they have fte requests so additional personnel to help with their parks maintenance that they lost during covid as well as for additional equipment and things for their maintenance program and then in leisure services there is an offsetting revenue so we're only counting the impact of the general fund there but they're adding two fte's for rec coordinators and i do have the department directors here if you have questions specific questions about any of these supplementals they they'll happy to give you more information and so these are the council initiated requests that we've heard so far and we do have these in the proposed budget already funded so that dtv closed captioning the live spanish translation additional remote production capabilities and the public meeting attendant for a total of hundred and thirty thousand four hundred dollars so just a reminder of our position summary overall so as you can see a lot of the supplemental requests this year our positions because of coming out of covid and reopening trying to ramp back up our services so we have a net overall addition of 40 ft 40 and a half fte's over all of our funds 23 in general fund and 17 and a half in the other other funds internal service funds and utility funds just a quick reminder about our american rescue plan act we discussed this at link last week but i just wanted to remind you that those reoccurring positions are programmed in at 50 percent on the general fund side and 50 on the arp funding side and i wanted to show the community services this has been a focus of council over the last couple of years is increasing our our budget and our funding for our community services and so these are all of the different funding that community services utilize this does not include the new american rescue plan act funding though so that will increase this total amount but danny shaw is here if you have specific questions on this slide or want to want to discuss any additional items and so with that mayor if you this is a good time to take a break and ask questions for that that first section of general fund okay yes then and and so help me draw some because you're going to looking forward we can we're going to get into some of those other things so for this segment the question should be focused around the general fund and those supplemental packages that we've already discussed perfect okay uh and councilman armature around that that kind of topic yes um see a couple questions uh one uh so the i uh really like the uh public affairs editions of the closed captioning and live spanish translation and remote production capabilities etc for greater accessibility um i'm just wondering um if uh there has been any thought uh either in this department or since this department falls under the city manager kind of um you know citywide of also hiring uh more spanish-speaking uh staff uh to uh you know answer call especially in in customer service uh who can you know answer these calls live in addition to having a translation service because the translation service is great i'm thrilled about it um that you know i can imagine if some of that uh you know sometimes things get lost in translation and the person doing the translation um might not know certain details on policy so just wondering about that the answer to that council member is yes we're always looking for um bilingual or multilingual employees um we don't uh make that a criteria per se but i know in the customer service area i know ryan can certainly address it from a three one one perspective but it does help us so we can communicate with all of our community members so we're always looking to try to hire more multilingual employees and i know hr is uh excuse me taking on an approach to try to do that as well from our um our added value of uh you know being more equitable and diverse uh and inclusive so the answer is yes yes and yes thank you excellent yeah especially in our uh more public facing uh departments um police as well it would be great um let's see um then um so about uh the police funding so of the proposed increase it's a significant increase is i guess 552 of that is from you know is for personnel is that correct um yes so the additional um it would be one sworn officer and five civilian sworn officers and that's the 878 000 um and that goes back to the matrix study you may recall we did the staffing study and that was the recommendation that we add at least five positions a year for the next five years and so this would be the second year in a row we're adding positions however we are adding civilian civilian civilian positions excuse me this year instead of the majority of sworn officers yes so just one sworn officer and can you remind me of the with the five civilian positions are um there was i may have to have chief come remind me good afternoon mayor council frank dixon chief of police the five civilian positions are going to be one for a quarter master we're going to have two they're going to be doing direct file for a caseload and then we're going to have two they're going to be administrative in nature as well so in essence all five are going to be administrative positions all five administrative okay yes so and thank you i would i would love to see like in a staff report not necessarily now just a little more about you know what those administrative functions would be and the need for the need for those that would be great to hear and the the two street outreach positions i i would be interested to know and you don't have to answer this now this is just kind of you know direction moving forward you know why it's important that those come from police instead of say mhmr in other words i support i i believe that we do need more staff for street outreach you know i'm wondering um what the best way is of um uh you know allocating resources and and hires in that area you know to best meet our needs that's a great question council member so the reason that we're keeping those internally so we have greater flexibility of utilizing them as you know when you utilize outside services you can only control them as much as your partnerships allow this is going to get us greater flexibility to not only allow them to go out with the homeless outreach team but to also interact because they're going to be housed within the mental health division so this is really kind of a collective working relationship between ourselves the street outreach team for the city overall in working with united way mhmr and a variety of other okay thank you thank you okay uh mayor pertin melter thank you um wasn't actually on that point i i although since you're standing there chief i'll say that uh i think it's uh great that we're funding more public safety with and more sensitivity and compassion in the you know in the execution of that of that responsibility my questions about tax about tax rate first of all what is the dispute about how with the state you know about or the county or i don't know who it is about how to calculate the new taxes rate what you showed us makes perfect sense what are the other points of view right so the the state puts out a calculation form every year and it's about eight to ten pages long it's very lengthy and the way that it's laid out this year is basically and it's penalizing us for our increase in sales tax in lieu of property taxes so um we don't believe it's accurate um but we have yet to um have an update to the form so i know that they're our professional organization the government finance officer association has put out a webinar this week about the the tax rate changes and the calculation changes trying to explain what's going on the comptroller knows it's an issue but um this was um just unexpected they put out the form about a week no two days before our certified values were were um given to us so it was not a lot of time to um for rework or changes someone decided to mute me there uh okay i'll i'll stand by but now that having been said i've asked you know at a couple of points through the process of budget presentations whether to the best of our ability to project you know whether the supplementals that we're seeing were anticipated to be within the no new taxes rate and you know we don't know certified values a lot of you know moving parts but we do have our own point of view now on what the no new taxes rate ought to be and i see that you know what's been presented is not within that rate so did we take a look at what it would be to program within that rate and you know i mean i just i've just been sort of led to expect that we would see a presentation that at least you know started there i mean i'm not saying that i need to end up there personally i'm sure we'll have a policy discussion on that uh but you know what happened with that direction so um we did look at another a reduction if you if you reduce the tax rate by another let's say half a cent um you lose that seven hundred thousand dollars on the bottom line in general fund and it really hurts us next year so it's really not so much this year but next year with that dme roi rolling back down to three and a half percent it it we fall below or we stay right at that 20 reserve target in those future years um but that is obviously up to council's decision we can't lower the tax rate um because the dme uh rate of return was a temporary okay that's a like another policy lever right yes it could be discussed okay i mean i'll you know kind of save my comments uh you know as far as your action for later but i appreciate hearing that thank you okay uh council member mcguire thank you mayor um so regarding the uh uh supplemental requests and fte's um i'm inclined to want to include as many of them as we can i know that pardon me um i know that we uh starting in 2018 especially we've we've seen some reductions in staff um and not only do we need to be building back to our pre-covid levels of staffing but we we need to uh you know look forward to to the growth of our city staff needs to grow along with the city um and i i definitely uh have seen um several departments in which i i think under staffing is is a real significant concern so i mean i think it's good that we you know kind of downsized a little bit and we're able to take stock of where that staff was really needed and now now it is time to start uh rehiring uh in some of those positions or creating some new positions um can you speak a little bit to um cost of living adjustments um so we're we're looking at a cost of living adjustment of three percent for the coming year and then switching to a merit increase i cannot remember where this was but switching to a merit increase can you speak to um why what what the reasoning is behind that and then yeah that's it that's my question sorry um david's going to come answer that question for you so the out years that's just a placeholder to say we have three percent bucket in those years we haven't made a determination on the out years if we're going to stick with colas in those years or go back to some version of a merit um type system so we're going to use the next year six months to a year to analyze that and think about what the best solution is moving forward so there's no commitment on those out years for that three percent okay thank you that makes sense okay uh councillor bet thank you mayor um so for the well let's just follow that one so we will be consistent in thought is the is the is the idea that um or can you remind me the current rate of inflation i can't remember that off the top of my head does anyone know i don't know have it off the top of my head but i can look it up for you no and it's germane for for the uh the the colas are essentially to offset that versus merit is merit and so i i i have a similar concern that if if you know we have two different goals and sometimes we can't meet both those goals you know of merit versus versus offsetting inflation um but it feels like we're lumping them together with with you know two distinct goals are being lumped together into one pool of three and and i'm that's just something i would like to like maybe clarify as we go forward in the future i mean if you can address it now that's fine otherwise we can address it in the future um what is it 5.4 next year all right yes i would i would just address it to say we're having the same exact conversation you're having as we we're changing our hr system so it was an opportunity for us to step back and say we don't have the capability to do the merit the way we want to this year so we're going to do a cola this year but those are the conversations we're going to have over the next year is what is the most appropriate what are we trying to accomplish is this the tool that we want to accomplish for performance evaluations should it be tied to that or should it be strictly a cola for inflation and cost rising so we'll come back to you over the next six months to a year and have those conversations and as we go into the next budget you'll have a have a plan moving forward so okay so in line with your thoughts so that would be next year and this year we're just sort of saying well we'd like three percent to just cover our bases it's essentially this year is sort of a holding pattern of three percent for both of those goals and and we'll we'll refine it in future budgets all right okay um and that's tied to the fact that our hr we're having hr system transition right now and we just won't have the capabilities to do the performance based merit based increases the way that we would like to okay without the metric assessments okay that actually that makes a lot of sense um for the variation we're having with the county do you end can you do you have a ballpark of like uh you know high and low end range of what what you know how badly are we going to be messed up on one end and how flush are we going to be on the other so we've received we've received values that anywhere from 45 cents to 56 cents so and anywhere in between so that's why i was showing our calculation right now um i think that we will be closer to the 56 57 cent value but still too early to say i don't know unless they revise the form so i guess that gets me to two other things where we're talking about distribution and and trying to make an assessment for what what we should approve so i'm going to double down on something that previous the mayor pro tem and some others have said and that is um it it would help me if if i knew sort of the um the impact of all of all the sort of supplements we discussed you know as sort of like okay well here's the no new tax rate and these are the ones we're presenting under the bar and then like okay this would be marginal this would be you know if we could have a scale for because if we came back with just like you know lost in the noise tax rate you know but we could get a dozen really nice things then why shouldn't we do that or on the other side if if we can you know if they're all going to be hideously expensive and they're they're just going to throw monkey wrenches into the machinery then okay we need to know that too like any one thing would just screw everything up so i guess what i'm sort of saying is it doesn't well i always council says it doesn't have to be perfect yeah i but uh the if we could get an assessment for some of the supplements we've talked about in their sort of anticipated impact on rates were we to improve approve increases or decreases to the rate that would be that would be awesome um and in the same token this idea of understanding ranges of the last couple questions um you said there was the we were expecting sort of with this current no new tax rate 96 dollars as the the average uh increase in in taxes is is is that that was mean right yes okay so i guess i'm gonna go forward with like one of the things in analytics is i gotta know the mean versus the medium because it looks to the distribution and you know um if you've got a skewed tail distribution and and i mean if you've got a long long tail of poor or long tail wealthy then you're going to mess up the average uh versus what the typical person is so this this this question of mean versus a median goes to say what is the typical person going to experience versus what is the average person going to experience and the average could be completely blown out when we do the average by you know if we are biased towards poor or biased towards wealthy depending on how that goes so i would like to see medians and and means in the future just because it helps because they're really close then all the modeling and predictions is is going to be pretty accurate and if they're if it's really skew then then we're going to have to make different assessments because it goes to the number of people we impact versus um the class of people we impact so i do have the median value yes um it's 247 171 um the reason i didn't show it on the slide is because i don't have the history of the last several years to compare it to but that is the median value for the awesome that was fast thank you so much and then uh let's see oh um do you happen to have in your in your in your data backup there what the sum of our homestead expenses are because i mentioned earlier this morning you know we could play with rates versus homestead exemptions so i'd be really curious um what the expense that we're spending on homestead exemptions are because if we did you know a half of a half of a cent or quarter of a cent one way then then offset for certain categories of people in another way then we this is a way of fine graining some of our our tax base that's in our power not not somebody else in austin's power um i don't have that off hand but i can definitely follow up oh that'd be awesome i appreciate it um oh and and this is my last question is uh uh can you educate me why sales tag you mentioned earlier the mayor pretend that sales tax was part of the formula why is our sales tax part of their formula i i guess i don't understand that because isn't it our sales tax yes it is but it goes to the total revenue available um and i i don't want to get into it's a very long formula we've gone back and forth but just to say that we are not the only city experiencing this then because of its complication if there's not a short answer if you could send me some some backup like uh links or something where i could get more comfortable more familiar with why they're doing that i think i can help a little bit so we have a one and a half cents that comes to our general fund for sales tax most cities just have one cent so you have one cent straight that goes to general fund every city in texas the other cent is the community has options and what they do with it the voters in the past have voted to say a half cent of that's going to go to dcta and a half cent of that's going to go into the general fund other cities could have that half cent go to uh sell to economic development to street maintenance to parks but we don't we have that half cent just go straight to the general fund so it's that half cent that which i keep saying half cent half percent that just comes to the general fund the others not all cities have the calculation the way they changed it they just didn't take that into account it's just incorrect the way they're applying that half percent of sales tax to us so not all entities are experiencing that same exact issue we are but all the cities that have the generally it's called sales tax in lieu of property tax so that half percent that's coming to our general fund is what it's what we believe is one thing that's making the calculation walkie for us okay all right that helps thank you okay um council member burke thank you um on slide eight can we take a look at slide eight okay yeah that's the one i was looking at the i don't understand this slide i'm looking at some numbers you know 2021 7.88 percent is that is that something that's explained side eight to me and also explain the yellow the yellow line that it looks like we're increasing in something property values right so the the yellow line shows our total assessed value so that 14.4 that you saw on slide seven it's it's the same information shown a little bit differently okay um so you can see the yellow line is our total our final value of 14.4 and then the value change is what's showing in that um in that blue bar so almost the nine the it's the 820 million and then that is just adding a percent so the percent change from year to year is the 7.88 percent oh okay okay same information just shown in a little bit in a different way okay because i was looking over here on slide number seven and i'm trying to connect it but it just wouldn't work for me uh but the question on slide number seven it says total certified appraised value uh excluding the t i r z why is it excluding t i r z that's our um our ters we have two different ters the downtown ters and the west park ters and that's excluded from this calculation so and i have that in a separate slide in the upcoming we'll talk about those values in just a minute okay i was wondering about that i had a question about the homestead value but i think that's already been answered over on slide number 12 scoot over to 12 okay so i know this is our general fund revenue proposed budget in down here it says and i'm looking at each one uh out but i was particularly interested in the one that says transfers is that so where are we what are we transferring in where is that coming from so those are from other funds so for instance the utilities transfer money to the general fund to pay for um hr services finance services city manager's office legal those are the transfers that happen between the funds and that is opposed to other revenues what's the difference between transfers and other revenues um i can get you what a lot but it looks like yes let me find it in my book um i can i can give you the detail of the other revenues in just a minute of okay budget team look it up for you all right thank you so uh with that being said i was looking at uh just i don't know why why three percent kept coming up three percent three percent three percent is that like a magic number or some some sort that it just seems like three percent here and three percent there we we typically use three percent as an escalator um just because that's typically falls in line with um cpi but not always it's you know it varies from year to year but we use three percent it just seems like it's a number that's not too much and then not really that much kind of fall between number uh but that's just something that i just recognize i don't know if anybody else had you know out there in the world that recognized that uh looking at patterns here uh and i'm with that being said that's all of my questions thank you thank you okay um so before we get back to uh speakers uh speaking a second time again just trying to zero in on the general fund and supplemental questions directions etc so if we could um we do have another presentation and more discussion so it's succinct as possible councilmemorater uh yes so a question about uh homestead exemption um sorry first just question about about homestead value and then homestead exemption um so you mentioned and i appreciate and concur with with councilmember beck's uh comment about you know medians being in many cases more helpful uh than means and it it being good to know that the two of them and you know to see if there's concurrence between the two so you mentioned i want to make sure that i got this right so 200 that that the median um was uh 247 171 is that right um and so what is um the what was the median the previous fiscal year i don't have it um but i can find that for you it would be great to know um you know not only like to you know put that in the staff report but also the next time this comes to us as a absolutely a budget item um uh because that's what that's how i can kind of make sense of that number to see what the increase is um assuming that there is an increase you know and then to compare it to the um the average increase which is mentioned um so i i want to say that uh i i really like uh uh kind of councilmember beck's uh questions and kind of exploration of property tax and homestead exemption and the way those two can kind of could work together i i would really like to see um uh some um you know kind of different scenarios of you know what it would look like um if we increased property taxes and say it you know doubled the homestead exemption maximize the homestead exemption so that um homeowners you know and especially homeowners who have just the one home you know that they live in would be uh would have a reduction in the amount that they would be paying um and that the city while the city could increase revenue then that would be um a really great way uh to both you know incentivize home ownership and help people out and also you know to kind of to maximize uh our our uh tax base um so i'm i'm very interested again this is not a like a policy direction but just saying that i'm really interested in that um and and seeing what those numbers look like i'm very open to that and and i do want to point out it is too late for us to increase our um exemption for this next year for fy 22 but we can definitely run the numbers for what it would look like for fy 23 when was the deadline for that um i believe it was sometime in july june sorry yeah yeah i i wish that so for next for next year i mean it'd be great to like when that rolls around um for us to have a meeting about that um you know where we can determine that apologies if we already did and i'm completely forgetting no we we did provide information in the one of the friday reports there was a staff uh informal informal staff report excuse me that outlined kind of the current exemptions and then possible future exemptions in the the timeline associated and thank you so much yes somehow i missed that there was that deadlines but uh but thank you okay um council member tim melzer yeah thanks uh just a couple of comments if if a lot of what we're seeing is conditioned by the fact that the dme roi is going to go back down uh i would suggest that we look at those in combination and you know it may well be that we might decide that you know a benefit of having having a municipally owned utility should be a higher roi you know uh so you know i don't really see why those discussions should be separate but they're all both about kind of doing the funding and then uh that goes to uh discussion about the rate i would just say i'm really glad that you show us the bill and not the rate uh only uh it's a in my opinion a perennial flim flam of elected officials to say i didn't raise your taxes i kept the rate the same your assessment went up there's nothing i could do about it but we know that's not true because we know the assessment before we set the rate so we should just be able to honestly say this is a proposal to increase the average bill 6.3 percent if you want to do that and have a discussion about that we can do that but let's just be open about it now am i saying it has to be zero i'm not it has been we have targeted zero increase for a number of cycles uh and but you know i acknowledge that costs rise uh and but it doesn't mean that dentonite's ability to pay has risen fortunately unemployment is recovering but the dfw wage inflation rate is more like about three percent and i acknowledge that all the things that are being proposed are very worthy i think we could spend the same amount again without running out of worthy things but i don't think people's you know i think people send us here saying uh you know we should do the best we can within the means uh that we're you know that they're providing us so i'd be interested in you know building on uh uh councilmember beck's request that we see sort of within the supplementals you know here's the proposed here's the where we would draw the line if we were doing our calculated no new taxes rate and here's where we would be somewhere in between if we were targeting the wage inflation rate you know so in other words take take the average tax and you double check me i'm i'm going by what mr google says you know that's three percent uh increase in the average tax rate in the average tax bill back that into a tax rate you know and then where would that put you in the supplementals that's my request okay and so before we move forward i just um i have a question for danny if i may please is she excellent good afternoon thank you um question one of your supplemental requests was a property recovery recovery grant program around numbers fifty thousand dollars can you help me understand what that is we withdrew that one we're still working with legal to find out what's the best process for that so that was no longer on the okay requests got it thank you um okay then uh for me that that's everything thank you uh so i guess my direction would be i don't know if there's support for it but um whenever it comes back the council supplementals i'm going to ask that that be a separate item somehow structured i just as it's currently constructed i don't support i think we're doubling down on the uh language translation component i think the um closed caption allows a lot of different flexibility that we need so it supports you can then take that text and have it translated in a multitude of languages so then the city's secretary's office could take that and send it to someone they can google translate in it to everything so we're in we're supporting the entire community in my estimation and it allows us to track those requests so we know which languages are primary versus making an assumption right so if if there's a student here at unt that speaks russian i want them to be able to you know understand translate that and so i think giving that opportunity or chinese or it just kind of gives us that flexibility and gives us the metrics to then make a decision on is this seventy thousand dollars warranted to spend that and so for me i think i'm going to prefer that we spend that money on an fte and i've highlighted a few just for for the notes so the library has asked for two part-time library assistant texts and that to me is obviously we've talked about how important that is and those are bringing back staff then also parks and recreation is missing three full-time and i'm saying it's it's fte's but it's a fsw number two irrigation grants that was on their supplemental that wasn't funded and so i think that's important obviously the parks department has taken a hit and then from a recreational standpoint there's a recreation coordinator position that's not field and so i think we can accomplish two things at once that serve the entirety of our community better by saying hey we're going to use the closed captioning to then serve our community have better the minutes become instantly easier for the city secretary's office then also they're able to be translated to any language so we're supporting our entire community that way and then we're bringing back fte's which we're missing which also serves our entire community so i think not doubling down there and just kind of having taken a holistic approach to me is is the best approach to get more bang for a buck and create data to then make an educated decision next year to say okay we had this many requests this many languages now we can we can kind of guide where we need translation so that that to me is important and then i think that's all individually for me but as a for your notes i think i would need to hear for the for the council i'd need to hear from i've heard two that would want to explore raising the tax rate and raising the homestead exemption that's council member back and council member armature and i've not heard a consensus there so if there's anyone that wants anyone else before staff goes down that that road of raising the tax rate to then raise the homestead extension so anyone else that wants to explore that staff needs to hear that because there's not a consensus at this point i know that doesn't stop the the individual council members from their requests but i just need to give clear direction our summarized clear direction and then the no new tax rate will come back that's my notes and and i guess my question is does that does that kind of to get in advance of that calculation coming back is it still hold true one cent is one million dollars it's about one point two okay so then those that want to explore the city manager's supplemental can look at that list and tally that up to one million dollars of what they'd want to remove and then understand that roundabout is kind of they can have that in their mind as you bring that back yes absolutely so one cent decreases about one point two million dollars loss of revenue right and you have that other is true too one one cent increases one point two million dollars right and you have those the city manager's supplemental request for the general fund that slide 16 right and so you could look at that if you're wanting to pull stuff off that's the general math that you could do in advance great okay and i think that's everything i have and we'll see so this is specifically around homestead increase tax rate increase is what i'm looking for and then we're going to move to the next section so is that what you're looking to speak to councilmember wire yes okay if you could please thank you so just to clarify um it is too late for the this upcoming fiscal year to make adjustments to the homestead exemptions so we would be talking about for the 2022 2023 fiscal year so i would like to to see that once we're through this fiscal year's budget process and we're starting to think about next years then yes i would like to see that okay thank you and mayor protein melter yeah thanks to the extent that uh there's interest in you know considering next year because we're being driven by next year with the dme rate uh roi then i think that sets the table for also being willing to look at that that other dial of homestead exemption i'm not personally advocating for uh you know increasing the tax rate but i'm but i'd certainly be interested in understanding what the impact is uh would be of uh you know of adjusting the homestead exemption so i'm going to summarize and say there's four people that are interested in discussion raising the tax rate and raising the um homestead exemption and uh councilman armater is this around the homestead conversation uh yes just just a brief uh you know correction just to distinguish between well looking you know to distinguish between property tax rate and the general tax rate okay so yeah so we were talking about i was talking about and i wasn't making a policy direction but just wanting to see uh you know what the numbers would look like um for to look at that balance between uh property tax rate increase and homestead exemption increase for the following for the following fiscal year just to make that clear i understand and and i guess uh not to but we're not going to bog down on this but i'm just going to say uh i just needed to make sure there's four people that would support that because i'm trying to be mindful of staff working the numbers to only when something's doomed to fail that's my that's my thing if if there's four that say if this comes back and it looks as i anticipate i will support it now those four that i've kept captured say yes i'm willing to consider raising a tax rate to then raise the homestead exemption then i think that's important for staff to know before they go work because otherwise it's a one-minute pitch is is what i'm saying so i'm just trying to make sure there's a consensus that would say yes when they bring it back because if it's just an exercise then make that a one-minute pitch and staff can get back to you and say if it's going to take the two hours or more that sort of thing so trying to circumvent that if there's if there's a consensus but i don't want to just send staff down to to work on an exercise and i don't i didn't really intend to take it take this much time as far as a new it's a nuanced thing but ultimately it's just a broader view to say yes i would support that policy and and and that's where we're trying to go but i just um i think there's consensus at a low level to then explore that so not an infinite amount of time but not like it has full support but just kind of a and maybe it's a friday report that says general parameters are this and at the end we're talking a year away so we'll we'll circle back uh when that time comes into focus we'll go to your your next presentation is it well let me let me catch this mayor pro tem is it something is if it's a nuanced discussion i'd rather not do it now i'd rather us you can have that conversation with staff offline but if it's if it's something substantial that would change uh what they're going to work on by all means okay thank you if you're uh i don't i don't know i wasn't tracking you know who you're counting in the four so just if if uh if there's any if you change what you do i expressed interest in uh the impact of changing the homestead exemption i did not express interest in increasing the tax rate okay next so next we'll move on to the internal service and special revenue funds some of these you've seen before in department presentations but just to give you a quick recap tech services materials management fleet risk health engineering customer service facilities management street improvement fund are all items that you have seen before in the department presentations just wanted to give you a recap of the proposed revenues and expenditures for fy 22 and again and show you the um the fund the appropriate fund balance estimate as of the current fiscal year in the next proposed fiscal year so just wanted to note though also when discussing the fund balance we have talked in the past about internal service funds not necessarily needing to keep a large fund balance because that is paid for by the other funds so you see a couple of those funds where we are reducing that fund balance intentionally and so just a recap of the airport fund you have scott presented this a couple of weeks ago you you have seen this before but again we are using reserves to draw down that fund balance in the airport fund and so with that we'll move on to the supplemental packages that were presented in the department budgets for internal service funds and so again i have a proposed fy 22 column that's the full cost of the request as well as the estimated impact to the general fund and so you can see airport the tower equipment inspection and repairs as well as the mowing contract increases both of those are going to be impacting general fund 100 and then procurement has asked for reclassifications of two positions uh warehouse specialist positions and so the estimated impact to general fund is a little less than twelve thousand dollars tech services you may recall in lisha's presentation she requested two additional fte's with an estimated impact to general fund of 125 000 and then customer service you remember krista presenting those additional requests for fte's to implement the 3-1-1 system and so now we get into the downtown turz budget so council member bird the turz is the tax increment reinvestment zone i'm sorry i did not put that on the slide but that is that is the turz acronym so you can see on the slide we did not increase as much as we originally expected in the downtown turz mainly because of that first bullet point 25 percent of the value is still under protest so this will change significantly as we move through the budget process but just wanted to make you aware of that and then we will we are contemplating 200 000 which is an increase of about 100 000 for grants and then grants that are in progress as well as funding portions of the downtown master plan update it's not currently shown in the budget but we're going to include it before we get to the adopted budget and so there you can see the history of the appraised values for the downtown turz again that 0.06 percent increase is not what we were expecting this year but will likely change as the as the protests are and so on to the tourist and convention fund you can see the um the the fy or the i'm sorry the program year 2020 actuals the program year 21 estimate and then the program year 22 recommendation the recommendation did come from the community partnership committee back in june we had multiple requests in this fund with a drawdown of our fund balance of a little less than a million dollars so the 925 000 and i do have the detail if you want to get into um the total expenditure detail in more depth but just wanted to give you an overview of the recommendations of the the community partnership committee for this fund other special special revenues funds so the parks gas well fund is really used for um parks capital projects completion it's about thirty thousand dollars that we have budgeted next year as well as the mckenna trust fund is 90 000 for ongoing park maintenance at the mckenna park and then the peg funds the public education government channels the um that is 440 000 for next year and then parkland dedication fund and parkland development fund both at 1.5 million and these are funds received from developers for neighborhood parks that are within one mile of the development or the platting and so it's used for acquisition of new park property as well as construction of parks and amenities in those parks we've discussed already at length the street improvement fund so i won't go over that again the tree mitigation fund budgeted at 753 100 000 for next year and that's for um ongoing funds for tree planning on private and public properties the rec fund which is really for our parks programs that are fee-based programs and are self-supporting that is 7.3 million proposed for next year our roadway impact fee fund we talked about that um david talked about that a little bit earlier and i will go over that again in the cip presentation so i'll spend time on it here the police confiscation fund is budgeted at 75 000 for next year as well as the economic development investment fund of 500 000 and with that i'll take any questions okay and help me frame this segment because you have one more to go right so so here it's just kind of what are we looking for um just direction on the um supplemental package requests for internal service funds okay thank you um seeing none um right now i will say i'll ask on the recreation fund um did we adjust accordingly for american legion hall coming back online obviously that was one of our largest facilities that was that were rented so i think that's going to tick up we did we're making confirmation yes that's awesome you got to watch my team yes okay um great then nothing there so we'll go to your next presentation okay and so moving on to our enterprise funds um there it goes so just brief utilities rate history um since 2018 we've really um continued our emphasis on cost containment in the utilities and been able to decrease the rates um substantially since then you can see before then we had um annual rate increases pretty substantial annual rate increases every year in all of our utilities so we're very proud of the fact that we've been able to decrease those rates over the last few years wanted to hit on the high level um we are trying to put an emphasis on uh environmental services and i've pulled that out of the water fund and budget it similar to how we budget drainage in the wastewater fund so just wanted to to hit again on the environmental services previously it was reporting in several different areas and we're bringing it all under one director that will will take us forward with environmental services so again these funds are budgeted in the water fund but you can see the expense breakdown by category by the division so sustainability industrial pre-treatment watershed protection lab and public outreach for a total of 4.1 million budgeted for next year and then again you've seen these performance so i won't go into a lot of detail but the water fund you can see in fy 22 no rate increase current revenue is projected of 1.3 million still staying with within that maximum or minimum and max reserve targets and that capital project reserve that you see there in the 25 through 27 time rain is really it's funding the design of lake ray roberts that water plant expansion so trying to cash fund some of that project before we get to that point um debt service you can see the debt service increasing as we plan to issue more debt in the fund revenue staying fairly consistent increasing year by year and then again wastewater fund you've seen this before but again we have we do have some future year increases programmed in 29 and 30 right now obviously that will depend on the debt that we issue each year so we'll be reevaluating that annually before making that final recommendation you can see the supplemental packages programmed in reoccurring expenses every year as well as the debt service debt service increasing substantially as our capital program increases in this fund but also while staying within those reserve targets dipping below in the future years but we do have those rate increases programmed and then drainage is actually part of the wastewater fund but we like to pull it out and show it to you separately not a lot of changes in drainage but we do have a target fund balance of about a million dollars in drainage and you can see that on the blue line and so with electric um you may recall we presented this a couple of weeks ago and showed you um that 2021 estimate of our winter storm and fury impact to the electric fund where we um we did refund that 140 million of commercial paper into 30 year bonds and you can see that that payment there on that bottom line the 6.2 million dollars going forward in the out years as well as the supplemental packages requested by dme and i'll get to those in a minute and then you may recall the non-rate revenue that t-costs revenue were decreasing we were previously going receiving about 28 return we're decreasing that to 13 based on the outstanding rate filing with the puc and then again the proposed reserve targets increasing based on our experience with winter storm yuri 100 million to 150 million is what we are proposing for future reserve targets for the electric fund and again we have not we're not projecting right now to have a rate increase but we'll be bringing that discussion back for council consideration in december and so solid waste again no rate increases projected for next year but you can see in fy 23 those health cell agreements falling off in 23 so the reduction of revenue the supplemental requests continue each year recurring asking for positions which i'll get to in a minute as well as maintaining our reserve targets in this fund of the 51 to 65 days and so the good news for the utilities there's no increase on our monthly rate for our our residential customers so you can see our we use our average residential customer usage right there on the on the chart so sorry i don't have the median but no increases proposed at this time for next year again electric more discussion to come in december and so we've i'll go through these very quickly because we've already discussed them water supplemental requests we're seeing increased materials costs licenses increase for fire hydrant maintenance line locating and then street rehabilitation and with the 413 and a half 413 000 sorry and then wastewater supplementals again same thing as in water increased material costs trying to align with the street cuts work and then line locating and and they are requesting another watershed inspector to meet their three-week inspection goal electric is requesting two f2 positions so one for a senior business intelligence analyst and then a line designer and engineering as well as their meteorologist services for a total of $400,000 and i do have all of the utilities here available if you need if you have additional questions about these supplemental requests and finally solid waste additional positions requested to meet their increased in workload some of these positions were lost during covid so some of our reinstatements and some are new with a total of five new positions being requested and so finally that is your proposed budget total of 1.4 billion dollars including the capital improvement plan which i will present in a moment but all of the budget by fund you can see on the pie chart there and so we do have some community engagement opportunities coming this month so citizens can get involved in give us feedback regarding the proposed budget before we get to the adopted budget we will be back in front of you to for your follow-up budget items august 10th and then the rest of the meetings in august we will be here discussing budget we do have a budget web page that actually citizens can provide their feedback in a form and we did purchase a new budget simulation tool which i'm very excited to show you in just a moment we can get feedback on our supplemental requests and then also we have the tax rate and public hearing scheduled for september 14th people can call in and give us their feedback at that point also so just real briefly i wanted to show you all we purchased this budget simulation tool called balancing act it does give our constituents the ability to provide feedback regarding the supplemental requests that we are proposing we've had we've had a total of 175 page views so far with 59 submissions and i will provide all the comments that we've received to you in a follow-up to the budget so you can see what what citizens are saying about our budget it is available on the city's budget web page so you can go out and take a look at it and then finally next step so again we will follow up with all of the outstanding items from this workshop on august 10th and then every meeting after that until we get to the budget and tax rate hearing and then budget adoption is scheduled for september 21st okay thank you so that's questions around the enterprise fund and those supplementals is all we have left so council member back i'm going to lead to a following up from cassie and that that that budget tool uh i've been pushing a lot of people to that and and people giving me personal feedback that they really love the playing with the games uh of you know trying to do what we're sitting here trying to do and that what you spend your career trying to do um and and they're there it's eye-opening to them we're like oh i i really love this thing but oh i can't pay for this thing so i mean that that's really really really helpful to them to see or at least to the people i've talked to um i would encourage on that that um there's not very many funding tools and and i know that that's a policy decision but to get feedback from the public over the next month and this is germane to the next month if you're going to if we're going to have these and we've really curtailed even the funding tools in that tool are smaller than the funding tools i mean i guess council has everything available to it but even the staff recommended ones are larger than um what's in that tool and so if to the extent that we're able to be um great if some more options were thrown into um expenses and revenues um for that tool just so that we can say go do it yourself if you don't believe how hard this is um i do have a couple brief questions one uh drainage is stormwater runoff uh as part of generally development and with the the new environmental services director coming on board uh and with increasing the amount of development that we're forecasting um we are going to have less and less opportunity for uh for green space uh absorption of water so that that drain that stormwater runoff just increasingly magnifies how important it is and i guess i was a little concerned that the the the budget looked fairly flat for inspections and yet it's i mean we're relying on our creek beds to take up more and more and more and more and more the runoff to the point where we're i mean you know if we don't do this right we're gonna have to channelize it like we did downtown and we'll run into the same nonsense that we did downtown and so i i would uh i i'm just i guess i'm concerned that that that rate that supplement is requested it seems um thin and then i guess um well i guess that's more of a comment than than a request for for a budget item it's almost a budget request it seems thin um and then the other one i wanted to ask about is more if if um we're not discussing the dme rate changes that we expect to discuss in december until december but we're discussing the budget past december uh feels like we're missing a piece of the pie and so um let's let's say what do do you you said it before and i believe the number was five and change anticipated rate increase is that correct it was um overall i believe it was three percent increase three percent or that six point two million dollar payment every year um but we still have a number of items outs outstanding in the fund which we feel like it would be premature for us to um have that rate discussion at this point because we do have an ongoing cost of service study that will be making recommendations about adjustments to the the rates as well as the t-cost filing um so far our transmission cost of service study um that's still outstanding and will have impacts to our revenue and our overall rates okay so but you know that's coming up in you know three and a half months uh so the i guess what you're you're generally asking us to do is to is to make a budget approximation of what we're comfortable with um neglecting any rate increases you're you're as i read the documentation you're saying we're just going to leave it stable and that's the way we'd like you to evaluate the budget uh as a as a stable even though we're anticipating somewhere around three percent if i may i think really what they're if and staff can correct me where i'm wrong but i think that we're trying it's more communicating to the public that hey we're a rate increase is not imminent to give them peace of mind for a segment of time but at the same time say hey there's some decisions and we're all aware of those that we're going to have to make and there's some studies that have to come back that may trigger an increase but to give people peace of mind for a period of time so it's not ignoring the budget timeline it's saying we have to communicate something to the citizens so they have peace of mind for a period of time and then understanding but that may change so buyer beware we're good through december but depending on decisions this body makes policy policy decisions this body makes that's subject to change fair enough do you have other questions councilman beck didn't mean to cut you off no that was a good stopping point fair enough is a good stopping point thank you okay councilman maguire thank you um could you explain to me like i'm a kindergartener what's um the terms eca and roi mean what are we talking about when we talk about those things sure the roi is the return on investment so it's basically um a percent and it's prescribed by charter that's what david was referring to earlier there is a cap on it by charter um but it's currently is it six percent six percent for dme sorry three and three and a half for water and wastewater and it's basically um a return that general fund gets from having a municipally owned utility and then the eca is the energy cost adjustment and that is part of the rate that you don't it's the rate is built in a couple of different components and i'm looking at tony or chris to maybe do a better job of explaining it than i can um oh david's going to do it so uh the and i just said a very high level the uh electric rates are really primarily made up of your base rates and in your eca rate the eca rate is intended to fluctuate with purchase power costs with the actual cost of supply so the idea is that it fluctuates more frequently than base rates if purchase if our costs go up it should fluctuate with it having said that and we've had these conversations a couple times but in december we'll have a very in-depth conversation or eca rate our eca rate has not fluctuated like that it's um just not collected exactly what it should be and we haven't been using it the way that it's intended so part of that reset in december we'll be having that conversation on the eca rate to have it align directly with our purchase power cost okay thank you yeah that's that's very helpful um okay i have a couple of other just sort of miscellaneous questions um is is dme debt um being paid out of both the general debt service fund and the electric fund um or is it all no it's all paid out of electric fund okay all right thank you and then um uh the the water rate uh forecasts that you had on on slide 31 um were you taking into account the possibility of the the bracket changes that we were discussing yes okay yes so the rate changes as they were presented we're going to bring you another option like we discussed a couple weeks ago but those were revenue neutral so those should not impact our revenues as we've forecasted currently okay thank you councillor marmotor there we go okay um just a uh suggestion about the uh um budget uh tool which i really love um i would love to see uh uh computers set aside you know maybe one at each library where um it's just set up to that maybe there's a little sign and so that people who you know i would love to see if we could grab people who might not normally look it up on their own might sit down and say oh hey i'll try this out you know maybe i don't know how realistic it is but it would be neat to have it at a little uh a little you know terminal um at city hall or customer service and where people go to um you know pay their bill or pay a pay a parking ticket or whatever um it would just be neat to try to you know see who we could catch who might not normally provide that input okay councilman councilman bird i'm looking at uh slide 40 uh the uh proposed budget fund and you know one question here it says general fund and then it says general debt service fund what is general sit general debt service fund so our tax rate you may recall is broken up into two components so it's the mno rate which really goes to pay you know all the operations in general fund and then the ins rate goes to pay specifically our debt service and so that is the fund that's it goes into a separate kind of fund and we pay all of the general government debt out of that fund and so um okay so you got the general fund and then the general debt service fund uh and the general debt service fund is where all of the payments come out of that okay got that technology services it just seems like as much technology i'm just trying to connect that with these the color wheel here but it just doesn't seem like that's uh quite a bit you know that's for technology and we are you know such a technology-based society i'm really surprised that we haven't gone you know much further with that and putting more funds into that area so we're just uh you know taking what they present or do we do we you know are we looking really far ahead to know that things are going to be more technology driven that's that's a very good question council member and um there's several things that i think you're seeing here this year and that is for uh asset management a collective asset management program we're finding out some things that we need to do two another one is this related to technology and that is looking at all of our applications that we have we have over 400 applications in the city but we don't know who's using them if they're viable those kinds of things so i would prefer us not go out and do a lot of technology investments until we know where we stand from an application standpoint because some of it could be duplicative in some cases like an asset management program different departments have it but what we need is a holistic thank you becky because always she says holistic um a holistic approach to how we do asset management and and so we're finding the same kinds of things where we departments have doing a great job they're doing those things but when you have over 400 applications that's a that's a red flag for me so technology yes there are some more things we need to do in technology and and alicia would tell you she has the needs for other things but right now i need to we need to get a handle on where we stand and then we'll go from there okay and so with that um mayor mr mayor can i ask continue to ask a question uh so with that being said uh are you all working on that or are you all you know going to wait until no no we're actually uh they just i think you just approved leashes here they just approved a contract to hire a consultant to go in and look at all of our applications the age of the applications who's using the applications is it a duplicate application all of those things okay so that's being worked on all right but that's it thank you okay um just a couple things i want to touch on um and i think this is probably a tony or someone question the transmission lines uh there's and and tell me if i'm uh getting in the areas where we can't talk about it but there's options for third parties to step in there and offset uh those costs did we evaluate that i'll let tony answer that one certainly uh mayor city council tony point the dean of the general manager yes we did look at that um at this point um as you know our transmission cost of service revenue 54 million dollars substantial amount that's really helping offset that eca uh question that you had council member maguire and so i think at this point um you know it it's not economical from our from my viewpoint we did not do an analysis but we did a visit with one potential uh company out there i think at some point if uh depending on where our transmission cost of service study comes back at that's something we may want to look at i think at that point we probably need to look at doing a proposal or request for proposals but so we're not quite there yet mayor but uh but that's the preliminary kind of discussion we've had great well i appreciate you at least looking at that so yes thank you very much um and then yeah so no not a question just a comment um i i think general budget wise just overview uh i think it's fantastic from um top down that uh depends on which slide there was a there's a circle graph and a bar graph they're a little different but it's either second or third uh revenue source is return on investment right and so that says a lot about what we're doing as a city and where we're placing funds that sort of thing and and to that end i missed it my opportunity before uh it's probably writing something down but but so forgive me but i'm gonna go back for a split second on the west park tours man that thing is performing phenomenal and that's really what we would look to that's a textbook model for that so my question is can we expand that or can we create another one to capture the the future luke 28 or how do we how do we continue that momentum uh going forward um we can definitely bring look at that i'm looking at david okay we can we can look at that and follow up sure additional information yeah because it's just found money right i mean it's just people are building and investing and then it just kind of we can continue to take care of roads so yeah whatever just whatever staff recommends around that either expanding that or creating a second uh for that as that first or i guess is our second terms but as that area is built out uh just kind of how we can move that forward that'd be fantastic to i mean because that area is obviously a growth area and it's a good opportunity to offset cost and that sort of thing so okay well thank you i see no other questions so that takes us to the next presentation yes excellent so you get me again um i'm gonna bring up the capital projects presentation okay so um as part of the budget development process obviously our capital plan is a large component of our expenditures every year and so um we we tried to do a better job this year of planning for our capital capital expenses and kind of giving you additional information more than we have in previous years about our proposed funding and so the capital budget process follows very similarly to the budget process we kicked it off in march we've been working on it through april and july and now presenting it to you today and so just to give some kind of reference for how we fund our capital improvement projects um so just like what i was talking about earlier the ins rate that debt debt tax rate that portion of our tax rate is specific for debt um and there's a couple different types of debt that the city can issue so geos which you may be familiar with um general obligation debt that is debt that requires a bond election so it's been approved by the voters so 2019 bond election perfect example we have street improvement funds land acquisition facility improvements all part of those geo bond election additionally we do issue co's so certificates of obligation those are not required to have an election but they are backed by the tax or the fee revenue so our utilities actual actually issue certificates of obligation and we use those for minor things so we try not to rely on our co issuance heavily but it's for our we do issue co's for minor maintenance so for fleet facilities and then other general government purposes utilities have separate separate funding for their cip so those are water wastewater dme solid waste projects all funded through each of those utilities so they also issue debt and revenue fund um their projects as well as there are impact fee revenue or impact fee funding available to to on projects as well as um aid to construction so and just here's the definitions of all the different types of cip funding that you're going to see in this presentation i won't read each of them but we will discuss them as we go through the presentation so again just this is you've already seen this slide today and i apologize i will add the median taxable value next time um but again this is our average taxable value so that debt rate the 21 and a half cents that we're proposing to increase that based on the issuances of the 2019 bond program so we are issuing debt annually for the next six years for the 2019 program and we did anticipate that debt rate to increase over the next couple of years as part of the 2019 bond program and just a quick recap of our bond program so 2014 bond election was 98.2 million um we we have issued all of the seat the geos so the general obligation debt as well as we did issue an additional 26 million of co's to fund to finish out those projects um the 2019 bond election you can see we're right in the middle of our issuance timeline so 220 million dollars was approved by the voters and you can see for all the different propositions street improvement public safety facilities and parks so again this is just a recap of the 2019 bond program this is our current geo issuance timeline this has changed a couple of times and will probably likely continue to change as projects you know schedules change and things like that but you can see we're we're anticipating issuing issuing 56 and a half million next year for 2019 bond programs and i do have um becky and rachel here are are here to answer any specific um capital project questions you may have also and so i told you earlier in the general fund presentation we had seven million dollars programmed in for one-time expenses for 2021 we felt like it was uh we were in a good position in the general fund to take advantage of instead of issuing co's and adding to that debt tax rate to go ahead and fund some one-time uh projects and in issue or fund them through revenue funding excuse me so we have outlined these projects that we're proposing to fund as one-time expenses out of this year's budget so a stormwater master plan for five hundred thousand dollars um following up on our winter storm uri outstanding items as generators for facilities and i believe those are at the fire stations um streets where we we are anticipating a one-time transfer to that streets capital fund of 3.8 million dollars which what we you discussed with david earlier as well as taking advantage of um using revenue fund for the athletic field lighting so replacing some of our um athletic field lighting and then replacement of two park playground equipment and the pecan creek trail master plan for a total of seven million dollars and so with that this is our proposed fy 22 capital improvement program so new funding only this does not include existing funding so we do have um some external funding that we are anticipating receiving on projects so that external funding i'll walk you through that in a moment in a future slide but that is regional toll revenue through the through the cog that we're anticipating receiving on a project um revenue funding you can see 32 million dollars anticipated for um fy 22 and that does include all the utility funds and then impact fee funding of 6.75 million geo issuance we already talked about that 56.5 million with co issuances and that includes all of the utility debt is anticipated to be issued co's issued for so 7.9 in the general government and then you can see the remainder there are utility funding and so um i have more detail broken out of each different um section of our cip so street and park maintenance um for fy 22 is about 13 and a half million so um using impact fees of three million dollars for bonnie bray phase 4b and that would fund right-of-way acquisition next year and then that external funding that i talked about earlier that is the mayhill at dcta bridge uh 4.8 million from rtr funding uh revenue funding that streets fund this anticipates the um transfer of franchise fees from the street maintenance operation our streets maintenance fund to the streets capital fund of 5.2 million you saw that last week in the streets operating budget and then bike lane funding of two hundred thousand dollars revenue funding and then additional park maintenance revenue funding of three hundred thousand dollars so facilities capital improvement program um we do have 1.8 million of co's for flooring hvac and roof so this is their um annual maintenance we issue debt for this every year um to keep up our facilities and um and then you can see the new projects that are kind of winter storm related so generators at the fire stations um and then security door and the security system along with the fire station 9 that we discussed earlier 750 000 dollars contemplated next year for the design and then 10.1 million currently scheduled for fy 23 um and i did want to note that this 10.1 like david alluded to earlier um it's scheduled for co's to expedite this project but we can it could be part of a future bond election if council so chose that and so with fleet here is our replacements and additions for our vehicles um you can see the majority of that is for fire so fire trucks and fire vehicles of 2.2 million and then um all of the other general government vehicle replacements are listed there for a total of 44.2 million dollars and terry is here if you have additional questions on the fleet replacements and then with that um just to recap really quickly about the utilities so fy 22 solid waste capital improvement plan total of 6.7 million next year and you can see future years increasing that amount water we've discussed um already but debt issuance of 34.4 million revenue 9.3 aiding construction impact fee funding and then the vehicle replacement funding for a total of 47.8 million and wastewater um i talked about this earlier they're really ramping up their capital improvement program so you can see that debt issuance line increasing the next three years um to to fund new capital program or new projects for wastewater um revenue funding of 4.7 million fy 22 for a total of 50.7 million in fy 22 and then electric um we talked about this a couple of weeks ago debt issuance of 52.9 million for a total capital improvement program next year of 58.9 again we do re-evaluate these each year so we have planned to issue this much debt but it depends on the projects um and the timing so we do re-evaluate this about halfway through the year and with that i will take any questions okay questions with respect to the capital projects budget um council member bird do you have questions that hold over thank you council member bet there we go thank you mayor uh so um on the on the streets uh let's see what slide was that just so we're on the same page and okay um i don't have a street like slide 11 maybe yes okay so uh i just it's related to the question i asked this this morning and are the bike lanes the bike striping the the side paths it i mean clearly some of these things are you're like some side paths are purely trails for parks some side paths are part of streets some bike lanes are part of streets i mean so i understand the natural overlap and confusion but and so i'm just trying to make sure i understand that the street funds is just for streets and the bike lanes is just for bikes even though this morning when i asked about street funding we said oh it's it's all merged together so i'm asking for a little clarity on that point sure so the way i understand it and becky you can correct me if i'm wrong um the street fund does contemplate the bike lanes if it's part of the street project but this funding is for items that are not contemplated in another project so somehow separate bike lanes well it's just a different funding mechanism different different funding so right so okay but then i'm back to this morning's question if then then you know we're not we're the the line items for streets sometimes therefore if we're using different funds line items to fund bike paths that means the line items for streets sometimes don't include the bike paths for the streets is that correct becky davini city engineer director of capital projects you are correct as we evaluate the street improvement program and look at individual streets and there are times that bike lanes are a part of those processes this dollar amount that you see specifically for bike lanes is to look at an overview of all the projects that are going on in the city and assess whether or not bike lanes can be added to existing streets or be as a part of a capital project okay because then we have a dearth of places where we need bike lanes so i would understand getting a separate fund light item for that i just wanted to make sure that i understood that that's sort of earlier point that we weren't we're not always including bike lanes when we do uh road repair and road funding um sometimes that's coming from a different fund and okay uh and no i think that's it thank you okay councilman burke i did have one question uh about the you noted on let me get back my computer back up here on the fleet the capital improvement program on the fleets did i hear you correctly in saying that these were replacement vehicles or or did i hear that right they're replacement and additions okay just for general government so uh i'm sure we have more than you know 37 vehicles out there so i just wanted to confirm that thank you ma'am okay um see no other questions give it a minute okay no we're all good thank you very much thank you uh that concludes item c that concludes our work session uh we are back tomorrow so we'll uh yeah so we're back tomorrow at two uh so we'll conclude this work session meeting at 143 p.m thank you everyone and we'll do it all again tomorrow thanks