Aug 04, 2016 City Council on 2016-08-04 8:30 AM

Thursday August the 4th 2016 this is a meeting of the Dent City Council basically to consider the budget so our only work session item is work session item 1a receive report hold discussion give staff direction regarding the FY 2016-17 city managers proposed budget capital improvement program and five year financial forecast. Thank You Mayor before I let Chuck kick this off I really would like to acknowledge Chuck and his staff for all the hard work that they did in assembling this budget document today. A lot of late hours and changes that were made at the last minute that they were able to accommodate and I really appreciate their efforts. The other thing I would tell the crowd everybody in this room here I know has been involved in budget in one form or another and without the help of this group that you're seeing today this budget wouldn't be possible so I really appreciate everybody's role in this. That's good and then I understand Chuck you're going to do the first part and then Tony's going to do the second part? Okay with that I'm going to turn it over to Chuck Springer our director of finance. Yes ma'am. Quick question is this the same document that came to council in our Friday packet ? Yes it's the same document we just provided a copy. We've also provided a copy at your area of the proposed occupancy tax budget we held the the hot committee held a meeting just this week and came up with the proposed so that document is is different than what's in the proposed budget and I'll go over that when I get to special revenue funds and that portion of it. I do want to mention that I'm going to do the first section and when we come up to the utility funds and capital improvement budget Tony Puente our assistant director of finance is going to do that part of the presentation. In terms of the development of the budget I go over this each year but it really starts off with the strategic plan and the five key focus areas of the city. I wanted to mention that this year in conjunction with the what works cities project there's a little bit more in the proposed strategic plan and that plan was part of your packet budget packet. We're proposing strategic outcomes key action steps in this year key performance outcomes in the 16-17 strategic plan and if you look at some of those they're really longer term in terms of some of the goals in there are more like five to seven year outcomes versus just one year outcomes. In terms of the budget priorities I know I've showed these to council on several occasions as we've had budget discussions but just to highlight what's in the budget starting out with the strategic plan outcomes expanding public safety response capacity we've got packages for police and fire that are proposed to expand that response capacity . We've proposed in addition to growth and franchise fees for street maintenance expansion kind of a 10-year plan to transition all of the franchise fees over I'll go through those numbers in there. I've got maintenance of other general government infrastructure traffic signals parking lots sidewalks buildings we've got some funding and additional funding for those so that's been another major emphasis on the utility side replacement and expansion of infrastructure again it is a priority for those maintaining just a competitive compensation plan keeping ourselves competitive with the marketplace especially in the Metroplex and again maintaining conservative budgetary management practices we've proposed a balanced budget in the general fund. In terms of the assumptions for the general fund in this budget and this is really for the upcoming year as well as the full five-year plan for 16-17 the values came in at 8.23 percent if you remember initially we had estimated 10 percent so came in about 2 percent below that assumption we're assuming conservatively for 17-18 and beyond 4 percent growth the debt service portion of the tax rate has increased just a little bit as you can see there to implement the plan from the 2014 election so the M&O portion the maintenance and operation portion really the portion of the tax rate the funds the general fund is proposed to decrease by about six tenths of a cent a little bit of that is because of the debt service tax rate increase but we've also proposed a decrease of one half cent in the proposed budget as you remember the discussions with the council the direction was a cent and a half to two cents with assessed valuations coming in at 8.2 instead of 10 that reduced the revenues about a million dollars about one cent already so we proposed an additional half cent to kind of bring it to that level of funding where the one and a half cent was at the prior estimates at 10 percent sales tax for 16-17 we're estim ating 3 percent above the revised estimate some of these are kind of net after incentive grants and 17-18 the same type of growth factor in franchise fees all the growth in franchise fees and we also have some additional revenues that go to the street maintenance fund for bond sale savings that's a little over a million dollars this year all of that is goes to the street improvement fund but as you'll see in the proposed budget an additional six hundred and twenty two thousand of base franchise fees are transferred to the street improvement fund we have about six point two two eight million still in the general fund in the current year and franchise fees so this 622 is about a tenth of that so this would be a plan over ten years to transition all of those funds to the street maintenance street improvement fund excuse me Chuck when debt is refinanced if that savings always go to street improvement funders it is it dependent on what kind of debt is being what what's going over there in terms of the bond sale savings is really when we issue tax supported debt certificates of obligation for the utilities what we do is we take the difference in what those interest rates would have been if revenue bonds would have been issued versus certificates of obligation with the city's additional tax pledge it lowers the interest rate generally may be 15 to 20 basis points so point one five two point two tenth of a percent it lowers it so each time we do a sale for the utilities that has a property tax back pledge whether it's refinancing of utility bonds with general obligation refunding bonds or new money in certificates of obligation we calculate that savings that the that the property tax rate guarantee has brought to that utility and that amount on an annual basis is transferred to the street improvement so if there was debt that was not guaranteed by property taxes it would it wouldn't necessarily go into the street correct like the planned revenue bond issuance for the electric utility there'll be no savings since that's a straight revenue bond it doesn't have a property tax pledge before you start in sort of a little housekeeping because I'm going to be focused on the presentation if y'all have a question just speaking to Mike Mary got a question because I may not see you if you raise your hand so because I know sometimes I can't get around everybody and I don't want to so sort of a housekeeping measure another question regarding the the franchise fee going to the street improvement fund does that amount put together with what we've been doing that's rolling forward have we achieved that amount of yearly maintenance money that will allow us to finally even out the conditions of the roads and start to see based on those OCI reports that we've had the currently the amount of money that's in there if you remember our last street assessment was the amount of money that's currently in there has really stabilized the degradation of our system as a whole but where we need to go in OCI spending I believe is going to be in the neighborhood of about 15 million dollars and that's OCI spending remember the street budget is made up of more than just OCI spending there there's an non OCI component that Tim Fisher went over a couple meetings ago so with the plan that we have in place now with with this amount of money plus the forecast out for transferring more from the franchise fee to that when would we hit the 15 million I'm sorry when would we hit the 15 million and well the plan that we have currently is to try to achieve the OCI spending over a 10-year window okay exactly when that occurs I'm not exactly sure but the other side of this is you need to remember that we had a 2012 Street only bond program and then we had some money so a lot a large amount of our reconstruction dollars is coming through debt yeah and I'll show the projections the five- year projections of the streetmate Street Improvement Fund after I get through the general fund so I'll show those numbers and I think roughly we've estimated right now somewhere around 60 to 65 percent of the operating dollars in the Street Improvement Fund go toward OCI so we'll look at those numbers and roughly do this 60% and Chuck would you prefer us to take a notation of the slide that we might have a question on and save the questions or would you rather have the questions sort of in real time what would be easier for you I think it's gonna be easier to do the questions in real time we've got so many so many areas to cover if I'm gonna cover that later in the presentation I'll mention that fantastic but I think especially when we get to packages and those type of things we're gonna need to cover it in real time all right thank you Chuck in terms of the the general fund the last thing I want to mention is we've proposed a slight change in the reserve policy for the general fund currently now it's set at a minimum of 20% what we're proposing is to leave that minimum at 20% but add what we call a resiliency reserve so that it can float up to 25% and have that cushion in case of emergencies what does that mean when you say you want to have a resiliency reserve so it would go up to 25% and what time period well it would it would allow the general fund balance to be up up to an amount of 25% in what time period well if you look at the charts we're really at about 25% right now our fund balance has been above the minimum of 20% for the last three to four years I've been here so I think we're really about at that 25% now okay so what is the value of doing that in your opinion the resiliency reserve it really just gives you a cushion when we're looking at a minimum balance of 20% it really gives you a cushion for un foreseen emergencies unforeseen expenditures that council would like to do one- time expenditures it really gives us that little bit of cushion when's the last time we were drew from the fund balance well if you if you look forward we're proposing a drawdown of some of the revenues over expenditures for the current fiscal year we've historically taken any excess in fund balance in the current fiscal year and tried to propose one-time expenditures of those funds excess over what over 25% no really any any revenues in excess of expenditures in the current fiscal year so any additional money that would add to the fund balance we've proposed to do that okay thank you along those lines part of the reason that we're trying to keep the fund balance at 20% is for the purpose of keeping our bond rating at the double a level double a plus double a plus sorry what is what's the difference in terms of currently the savings if we were at a triple a I mean how much less would our interest rates be if we were at triple a you know interest rates are very low now so the spread isn't big but I'd say probably somewhere between 10 basis points and 30 basis points so you know 1/10 of a percent to 3/10 of his percent I guess right now and out part of that is a function of interest rates are so low currently what have we have we talked to our agents about what steps would need to be taken if there 's anything that we can do to to change that reading from a from a double a plus which is a great rating to a triple a we usually have discussions with the rating agencies and with our financial advisors when we're rated to look at that some of the comparisons they use are simply the amount of outstanding debt some of the triple a communities tend to be more mature communities don 't know and not growing as much not needing to issue as much debt so kind of the debt load is one of those others they look at is like assessed valuation per capita and some kind of the wealth indicators those have really been the two areas that are kind of generally been pointed out to us by the rating agencies you know they're not going to give you a specific answer if you get to this exact debt level we're going to increase you those kind of things but just generally they'll talk about those areas but what I think I hear you saying them is that increasing the fund balance by several percentage points would not necessarily change our rating no I think I think that they do look at that fund balance every year one of their questions every year is do you have any plan draw downs what do you anticipate your fund balance to be during the five-year plan so they look at that but I think that 20% with the resiliency reserve would be seen very positively by the rating agencies that's not going to keep us from a triple a okay so to speak but it does help us maintain that double a plus to keep a strong fund balance I appreciate that and I also appreciate you explaining we're talking about some kind of points basis points instead of saying 1% basis point is 1% is a hundred basis points so instead of saying 1/10 of 1% I say 10 basis points it is it is 849 and it's the first new thing I 've learned today thank you in terms of just a little bit of background on property values and the proposed tax rate I gave a breakdown between maintenance and operation what goes to the general fund and debt service the proposed tax rate is a half cent point six eight four seven five lower than last year the two calculations that were required to make under state law are the effective tax rate and the rollback tax rate the effective tax rate is a calculation that tries to get at what would bring in the same amount of property taxes as the prior year excluding new construction that's the effective tax rate which is a little over two cents below the proposed tax rate the rollback tax rate you're allowed to go up to the rollback rate it's about an eight percent increase from the prior year on calculations the rollback tax rate if you exceed that tax rate the electorate can submit enough signatures on a petition to call an election and roll the tax rate back to the rollback tax rate so that's the one where there's a petition that can potentially come to the city to roll it back if the rate were to be raised above the rollback rate do you have a couple of slides that will show what the amount of new construction is it's it's and then you also have a slide showing what the TERS values are okay you know TERS value is is pretty laid in the slides but I think I just want to make sure so I wouldn't want to ask the question Joey did you have a question yeah and that provision for having those signatures to do that with the rollback tax rate I'm guessing would be if you have an old city and there's a ton of growth going on and then all of a sudden that hits their property values and they can kind of fight that with a petition or something can you kind of yeah the rollback tax rate is just it was put into place probably 30 years ago or longer and and there's a calculation that you go through and you kind of calculate the effective tax rate and you calculate it for your maintenance and operation separately you multiply that times 1.08 percent add in your necessary debt rate and that's the rollback rate so it 's a calculation that's been set for years and it gives councils the flexibility to raise that rate up to that level if you go beyond that level then potentially the voters can roll it back if you remember in the legislature there's been a lot of discussions about lowering that rollback rate there's been a lot of discussions at the state level in terms of lowering that if you've heard lowering it to six percent or four percent the rollback rate that's what that would do so okay if you were to lower it to four percent you'd probably go down about three cents okay how would decreasing the amount of funds that we increase over the 20 percent and reserve that is how would decreasing the resiliency portion of the reserve fund affect our effective tax rate this year potentially it wouldn't have any effect on the effective tax rate that calculation is strictly a calculation of the property taxes levied in the prior year and the value in the current year you're right let me clarify I'm sorry that was an artful question we're increasing the reserve fund by a certain amount of money this in your proposed budget correct I think there's a slight increase in the reserve fund after the end of this fiscal year correct okay taking that amount if we were to not do that would that have any perceivable change on the proposed tax rate that the budget department is proposing well let me break it down into two things if you were to expend that for one-time expenditures some additional one-time expenditures in this year it wouldn't have any impact on that if you were to say we want to take some packages that are funded out of the proposed tax rate for 1617 and fund those out of the fund balance it would have an impact on the tax rate but one of the things I want to talk about is is the difference between one-time expenditures and recurring expenditures what we recommend out of the fund balance in other words is one-time expenditures because that's not a recurring revenue that's just a one-time revenue source so yes you could lower the tax rate how much by how much well every every half cent on the tax rate is about four hundred and twenty thousand let me I've got an exact figure here and we're increasing the resiliency by how much this fiscal year well we're proposing a new fund balance policy to allow for resiliency reserve right now our fund balance policy just says we want to maintain a minimum of 20% the fund balance policy says we want to maintain a minimum of 20% if we fall below that 20% we'll bring it back up to that level within a five-year period we're going to we were proposing to leave that language the same but all we add is allow for an additional resiliency reserve so that fund balance can float up to 25% to have that additional cushion so how much is it is is the 5% no and US dollars how much is the amount of the resiliency that we're proposing to increase this year well please if I can slide forward I can show is that is that in a is that in a future slide I 've got the fund balance okay in a future slide and if you'll I'll come back if you can see in the proposed budget we're looking at a fund balance of about twenty seven point seven million so if you take five percent of that that's about five point four million well well but I think and correct me if I'm wrong Sarah I think what like the dip the change in the adding to the resiliency fund in this budget or adding to the fund what is this change in fund balance eight thousand one hundred seventy one dollars that would last year to this year that's just the difference between revenues and expenses okay we're not we're not taking any funds to build up the resiliency reserve I think what we're saying is we think we're at a level pretty close to that 25% now we're just saying we're gonna allow the fund balance beyond having a minimum of 20% a resiliency reserve of up to 5% in other words allowing the fund balance to float up to that level okay give us a little bit of additional cushion and all that so so so you're not proposing in this budget that we divert any money that would have been going for other programs to build up fund balance and you're not proposing that we take any of the money that that could have gone as a increase decreasing the property tax rate to using that money to to build up the fund balance the fund balance is what it is and and it's and it 's basically kind of holding steady based on our spending patterns and the fact that we generally conservatively estimate sales tax revenue and that it may come in over that and then we could use those those overages for one- time expenditures like we have for buying a new ambulance correct okay well I think that does clarify it it's not adding to the reserves we have the 25% now currently what we're looking at doing is in the policy describing that differently to say at a minimum we need to have 20% and the additional 5% was would be what we would call a resiliency reserve and the reason we think that's important is because if you do have economic recession economic tough times you want to have some ability to withstand that in your financial plan and that's what that resiliency redone does for us it get allows us to do that if you just have the 20% you're always at 20% from an operational standpoint it might as well be zero because you can't go below that figure so we want to have some flexibility that if you have some kind of economic conditions where you needed to draw down those dollars for whatever reason or if there was a one-time cost that the council wanted to to find that you have those dollars the the benefit of that right now is we don't have to try to increase our reserves to get there we're already there it's really just how you describe that and by policy that's it so that's what's proposed and what we've we've talked about but it's not we're not proposing to add to the reserves in this process I just want to make sure that's clear they're already there could you could you give some examples of situations that cities have faced where that resiliency fund if we faced those same things that that resiliency fund would be helpful to us sure absolutely I before my time in 2005 before my time here the city of Denton in 2005 Denton went through an economic challenge and several economic challenges and I believe it was around three to three and a half percent of the general fund had to be cut to make up some shortfalls that we had and so had we had a resiliency reserve we would have been able to weather that a little bit differently I think the year after that or two years after that a lot of that was added back but you had a lot of service disruptions and a lot of changes to the workforce and organization because of that so this gives you some ability to be more flexible with it 2007 eight nine recession that we went through having a resiliency reserve certainly would have helped the organization in the community to have some kind of reserves that you could draw down in times of difficulties and so that's that's the idea is to give us more financial flexibility when you have difficult times are there things other than the economic fluctuations that that we might need a resiliency fund for sure if there's a one-time cost that came up if there was emergence yeah if there's a one-time cost that comes up that you need to find you'd have that this Chuck was mentioning natural disasters are a great example of this Rowlett or Roanoke wherever it was on the east side of the Metroplex it had a tornado large areas of their tax base was destroyed areas that were generating sales tax and property taxes this kind of reserve helps you have some ability to withstand that maybe not all of it but it helps you withstand some of it so those are not to mention the extra cost involved in the city doing overtime and extra things to do cleanups for those guys I guess to help the people so that's that's the idea is to give us more flexibility got a question for you on that because I know for through the two south 2007 and 910 recession I think our policy was 15 percent reserve fund and then historically we moved it to a range of 15 to 20 percent in order to facilitate just a better footing with the bond rating agencies I believe that was one of them there one of several maybe but it went to 15 to 20 percent and so is part of what we're deciding in this budget cycle is a policy decision on do we want to because I'm hearing you say 20 percent now is the minimum whereas before we had a 15 to 20 percent range sort of some flexibility in there now 20 percent is we can 't draw down below 20 percent the current policy just to be clear is yes it's 20 percent but within the the five-year window we would allow it to go down as low as 15 percent provided we had a plan to get it back up to 20 percent within that five-year window so it's has some flexibility within the five-year planning window but the idea was to keep it at 20 percent what we're proposing is just to make that a little bit more explicit it's minimum of 20 percent what we've heard from the rating agencies is anything below 20 percent for a peer-level organization a double a plus rating would be considered low or potentially low and so that's what we're trying to address that with the policy to be 20 percent but have also that resiliency component which I think we need that flexibility it's essentially moving that from 15 to 20 percent as you're talking about to 20 to 25 okay that that was gonna be my next question so currently the policy is it's you're just saying we're shifting the range that's what that's what you're asking and with a minimum of 20 percent that's what that's what you're asking for that's right but that's I wanted to be clear the resiliency we're not proposing to add to that we're not putting in additional funds we have the funds we just want to designate them differently and we do believe that it just it's something that's needed for financial resiliency over time there will be things that come up that are unexpected and we want to have that financial flexibility to deal with that okay so sorry well let's see we've got one substantive slide and 35 minutes so it's not you I mean everybody's asking questions this just gives a little bit of history of appraised values the last five years may or you ask about the breakdown between new value and change so it's on this slide you can see the increase is about six hundred and ninety three million for 2016 these numbers exclude the growth in the T URS and I'll get to the growth in the TURS value when I talk about those funds of the six hundred and ninety three million about two hundred and eight million about two point four seven of the eight point two three percent it's about thirty percent was from new construction new value coming on to the role and four hundred and sixty million was from the increase in existing property appraisals the average homestead taxable values so this is the average taxable value of those that qualify for the homestead and on their property increase from a hundred and seventy nine thousand to a hundred ninety five thousand you can see at the proposed tax rate there's the average homeowners taxes would increase from 1236 to 1341 correct my help me on my math so if we just took the tax rate the current tax rate point six eight something I'm just gonna say point six eight and applied it to the new value which is excluded from the effective rate calculation the new value increases then that is what about four one point four million dollars is that about right I think that's from from the new value yeah if you just took our tax rate and applied it to the new value because yeah I think it's a little I think it's actually in the front of your book here okay it's one point four two eight nine ninety five thank you and on that if we did a property tax decrease of 1% just for the average Dent on resident can do we have one slide do you mean one cent yeah one one one cent okay sorry I said one percent what that savings would be just on that in terms of one cent would be about $19 dollars $19 okay I just take the 195 so one cent 19.5 dollars that's simple per year yes so 1341 to about 1312 1311 okay the amount would go down to yes go ahead when you're looking at the total tax able value of the city do you know offhand I know this is a crazy question what percentage of that represents homesteads we've got a breakdown in as part of the packet we kind of started the questions and answers and we've got a breakdown in there of the property values by different types of value now in here it's just residential versus homesteaded property we've probably got that but we don't have it in detail but let me look at the numbers in the current year later okay yeah she said we can defer that question to later in the presentation okay I mean I can give you in terms of the net taxable value single-family properties now that include homesteaded and then those that are owned by others and rented out is about 5.05 billion of the 9.172 commercial and industrials just a little over 2 billion this is on the memorandum and it's the first attachment of the memorandum I know one of the items that's attached to this agenda item is that memorandum kind of of questions and it's the first attachment here and then kind of the all other is about a billion and vacant land is about 616 million so we've kind of got a breakdown of what makes up the 9.172 that helps thank you Chuck is multifamily under commercial or residential multifamily is separate I'm sorry I didn't read that one out it's about 1.27 million to 2 5 million billion I'm excuse me 1. 25 billion okay thank you this is just table is just a chart of sales tax in the city we're estimating growth this year at about the current year at about 4.2% and then you can see the 3% you can see how sales tax not only declined in 1819 I'm sorry 8 9 and then flat in 910 but saw some really strong increases so you see a lot of variability in sales tax I've got three graphs on here I think one of them was requested when I did the presentation back in June and July we've broken down the proposed budget in terms of revenues you can see ad val orem property taxes about 37% sales tax is about 28% then you can see like return on investment transfers in those are charges to other funds service fees or the other three large ones you can see the franchise fees remaining in the general fund is about 4.9% of total revenues in terms of expenditures and I 've broken them down in the general fund two different ways this one breaks it down and shows that personnel services salaries and benefits is almost 72% of expenditures here I've broken out on the next table I've got economic development and I think last year it was requested kind of break out the 380 agreement payments from the rest of economic development so I've gotten that broken out you can see the transfers those are transfers mainly to the internal service funds like the technology fund materials management fleet fund for maintenance and fuel and those type of things so that's the breakdown by category and then we've got it broken down by kind of function or department here you can see police animal services and fire make up about 51% of the general fund the next largest is parks and recreation and libraries and then the other categories again here I've kind of broken out the incentive payments the 380 agreements from the rest of economic development so you can kind of see that clearly and I think in the budget book we also break that out just real quickly this is something we've had in place for several years but as part of the budget we estimate a salary savings at about 1 million dollars per year this really comes from two different items normal turnover where we have vacancies but also all of the vacancies that come up require ACM approval to fill them so this gives us the flexibility if we were to have an economic downturn and we used it in the last one we can hold positions vacant if revenues start coming in below our estimates so it just gives us that added flexibility throughout each year in terms of compensation and benefits I'll go over this and I know I think you received another memorandum from our director of human resources but what's built into the budget is civil service pay adjustments to maintain the meet and confer agreement that calls for 5% above the survey city's average there's also step increases that are time based on years of service is included also included there were some other incentive payments as part of the latest meet and confer agreement that were built in over a three-year period and that's included all other non civil service we have a 3% average merit increase and equity adjustments for those who would fall below the new range minimum future fiscal years in terms of the five-year projection have kind of a 3% overall package in them merit package and estimating the civil service pay adjustments to be at about that 3% and check no Kathleen so I think we're still gonna have to flush out the pay balance based on the compensation review that we've seen in the last two council meetings and I thank HR for breaking out the cost 50,000 and below and 50,000 and above so we have a healthy chunk of change if we follow those salary recommendations I had an issue last year with a 3% merit package across the board and of course that is really from 0 to 5 depending with an average of 3 emphasizing that the rate of inflation is 1% so last year all we had to deal with was the merit package decision this year it's the merit package in addition to how do we structure the pay equalization I guess we'd call it so there are a lot of dollars involved there so I am just want to put that on the on the board that those are some figures that we're gonna have to study carefully in this whole budget I would like to add to if I remember the compensation study done they said kind of one of the final words was to continue what you're doing to stay competitive with the market and if I don't if I didn't hear that correctly please let me know because I think that what the city has been doing sounds like it's been on track with markets surrounding cities and that sort of thing there was a ton of data in that survey though and they did touch on health insurance in that right I'm just having a difficult time remembering now that that just covered salaries that didn't cover health insurance well I would be interested on that health insurance funding part to see how competitive we are staying with other communities I mean not a big detailed thing but just where we lie with that so to follow up on m rs. Wasney's comment and mr. Mr. Joey it seems to me that that one of the one of the takeaways that I got from the from the compensation and salary study was that we had he said the smallest amount of money that of any city that he'd ever seen that we would need to do to correct and get everything in balance and I think a whole lot of that is due to the fact that we've had over the last several years we've been able to maintain the 3% merit raises and we've been able to use those not only for merit but also to adjust for pay inequ ities so it seems to me that that that adds to the argument of we need to continue doing what we've been doing because that has put us in a in a healthy salary range I went to a budget workshop a few weeks ago and heard a council member from another city saying that because they were trying to use salaries as a way to control their budget that the result has been a much bigger turnover on the part of their staff that they become the one of the cities that simply brings staff in and less experienced staff and trains them and then they leave that city to go to other cities where they where the salaries are more competitive the issue with that is that a high turnover rate actually adds to the cost because you have you have some significant and I believe they pointed it out you have some significant problems with lack of efficiency of a new staff person coming in the time to train them to get them up to speed so it becomes sort of a you're trying to save money in one area but it actually cost you money in another area because of the cost of turnover in terms of the employee contributions and the health insurance funding we 've budgeted a six percent increase in city contributions toward health care and for the upcoming year and that's what's there in in the five-year forecast in future fiscal years what we plan on is employee contributions the employee what they will pay toward the health plan an increase of ten percent for our gold plan and six percent for the silver plan the gold plan has a little bit lower deductibles lower copays than the silver plan also to control costs we're proposing this year to add a $50 surcharge for spousal coverage if available from the spouse's employer so if an employee spouse has the option of health insurance from their employer but they choose to be on the city's plan then they'll have to pay a $50 surcharge this is kind of a methodology that's becoming more common in the marketplace to simply control costs so in in this proposed budget is there an amount I see that that you're you're assuming that the three percent average merit page are you including any of the amount proposed by the compensation study to help equalize and balance out yes we that's really when I talk about the equity adjustments for those below the new range range minimum we have funds budgeted for that I think the latest estimate I saw out of the memo and the general fund was a little under hundred and twenty thousand in the general fund and we also have as I mentioned in the meet and confer in it in addition to the adjustments there's some additional incentive payments that were agreed to in that meet and confer for police and fire personnel it's a wellness incentive payment that's coming this would be the first year in 1617 funds are included for that also how much did did the study suggest that we needed to to do those equity adjustments I think the total on the numbers from the the memorandum is now a little under 300,000 across all funds and the general fund was a slightly under a hundred and twenty so so for the general fund which is the budget we're talking about here you're you're basically addressing that for all of those categories people under 50,000 people over 50,000 thank you we're also making a change to control costs for compound drugs where it requires a prior authorization that's been an area at least across the country where we've seen some extremely increased costs for compound drugs so we want to make sure we control that so it just requires prior authorization from the health plan to do that I'm going to go into the packages now that are proposed to be in included in the general fund budget for 1617 I've got some other slides of one times and from some of the other funds and these are simply in order of by departments and I've got the net cost on here this is after either anticipated revenues or transfers in from other funds in the building inspection department we've recommended a plans examiner and the technology upgrades for inspectors to make a more efficient in the field in the parks department we've got the addition of the wave pool and the concession stand so we've got the additional personnel mainly lifeguards to do that this is the net cost proposed to be offset by the higher revenues from that facility. I believe Councilmember Gary's got a question. I have a couple questions about that concession stand. First, are these part-time employees? The vast majority of them are part-time there's a couple part-time employees that they're proposing to move to full-time but the vast majority of that 13.6 I think 11 a little over 11 are part-time employees mainly what occurs with the wave pool if you think about it it takes in we have to have a lot of lifeguard coverage all around that pool if you've been like I have to the wave pool there's a lot of activity that occurs there and it takes a lot of bodies during the summer to cover that safely and then we're adding a little bit of staff to the concession stand part-time so the majority of this is summertime help. And then with the full-time staff that's being added on I'm assuming all full-time employees start contributing to the retirement plan correct? Correct. Okay so they would become eligible at some point if they meet all of their vesting their five-year vesting schedule for pensions and all that. Correct and it really the retirement plan is is permanent part-time employees kind of oh half-time or over as well as full-time employees are required to participate in the retirement plan. Okay so then my next question is with regard to the concession stand has there been any discussion of doing an RFP and just putting it out of house just curious if that has that discussion has happened. I'll let our parks director I know they the proposed fees and the changes went through the parks board so I'll let Emerson answer that one. Hi Emerson. We've looked at it but quite frankly the the revenue is so good with it that we would rather keep it in-house. You see our number we're talking about net profit and I want to tell you that those numbers are very very conservative. Well I guess my question is if we were to put this out of house would we have more profit because somebody's paying us to go do that. Well we can look at it and see you have to remember it's a three month operation also. Okay let's all want to know. Emerson I do have a question related to that. I guess as far as the projections for the income increase yes or because in essence what we're saying is what we're doing with the wave pool and the concession stand we're attributing about six hundred and ten or six hundred thirty thousand dollars of additional revenue than what we think we would not have received without it. Correct. To offset these costs so I think what would be helpful is to see you know for me because what I don't want to do is then come next year when we have real numbers . How do we benchmark that? How do we say okay this is what we thought it would be because we're gonna have revenue coming in from all over the place. So if we know the components of the revenue and then we can sort of back check it once once we have this year. So do we have a system in place that we're able to do that in other words next year can you go okay here's the numbers we had before this here 's the numbers we have how much of that increase to attribute to these and how much do we attribute just simply to more people coming. I mean how do we check it I guess is my question. Well the the increases thank you the increases are based on an increased admission charge as well as additional bodies coming through the front gate excuse me as well as additional revenue from the concession. So the concession would be very easy to track we track those numbers that would be very easy to compare year to year. Yep. The admission as far as a number of folks coming through the gate year to year will be very easy to track and compare year to year. Well and you're right I guess though my and maybe I'm perceiving this incorrectly because when I look at the budget package and I see Wave Pool concession stand operations 13.6 employees the revenue from that will be X but the cost is this leaving us a net profit so to speak or you know not a not a loss and so at the end of the year first full year I'd be able like to go back go okay whereas if it's an ink if part of that is an increase in your admission fees if part of it is your increase in admission fees well that that would happen that may happen unless it's we're increasing the fees because of the wave pool and because it okay all right and so that's I guess that's what I'd like to see maybe just in an informal staff report how we you know so that at the end of the year after first full year of operation we can we can track because if we're short we're going to be short and in the question the answer yes that we attached we gave a detail of their increased revenues it's number nine and we've got it broken down by daily admissions rent als programming gift shop concession lockers and is that in the is that in the 130 page budget or is that is that an attachment to that whole that's that's an attachment to the backup it's a question and answer memorandum okay there is yes okay thank you I appreciate that and it's it's it's number nine so we 'll be able to track those line items good compare those line items to these that are proposed and let you know how they did well and I think that's important because we're basing this budget upon those assumptions and so if they're off one way or the other it just it we have to maybe adjust our planning yes I appreciate your questioning on it and I am so comfortable with Emerson's answer I've served several years on the parks board and I was stunned one year when we at the the Civic Center poor pool now the Quaker town pool we simply replaced an older slide with a newer nicer fancier slide that could be seen as you're driving past the pool down the street and that year alone I think attendance at that pool but looking at that to the previous year summers were basically equivalent in terms of rain days and heat days and things like that that also affect I think the attendance at that pool jumped like 30 or 40 percent and what we've heard from from the park staff is that in a an amusement pool I suppose that's what you call this it needs to be refreshed every few years because that generates more excitement it gets people coming back that have stopped coming it offers some things that that appeal to different age groups then then then what it's normally appealing to and so this is simply this is simply part of the kind of business plan that any amusement pool operator would would would execute from time to time of changing the amenities increasing the amenities and expecting in the business plan to actually see that the cost of doing that is a well offset by by increased cost for attendance and increased attendance and and and all of the other factors that come into it so fully offsetting the cost of the the extra staff and things that go on am I am I am I on target yeah I would I would add to that I've got some figures from staff just last night as a matter of fact that here at the Civic Center pool after the improvements that we made in the offseason year-to-year revenue to date is up $50,000 over last year and that's no increase in size just an increase in improvement in the aesthetic and the amenities and maybe as I'm reading the supplemental package maybe there was an assumption that I made because it just says costs that are offsetting that you know the assumption I made or at least what I thought I understood was that these changes would increase this amount and we're asking simply for this but if you put this just in the total parks budget of saying okay that's what we need and we think we're gonna have this much more revenue for a lot of it because when I look at the list daily admissions including season passes so you are asking for an increase in revenue there so yes but rentals for a Cabanas facility rentals so there's a lot of things in there that aren't directly related to the wave pool in the concession but when you take it in the totality of the operation that you're saying these new amenities so I might have been trying to say are you saying that this will create this when it's really the overall revenue is enhanced by these additional amenities and we need these additional staff to support these additional amenities so we think that we can offset those costs okay I that might have been my mistake but I appreciate the clarification that's very certainly you bet yo yes sorry Kathleen a couple of questions and then a couple of requests just in point of information for our citizens our animal shelter continues to improve and we are funding an additional staff person out there it is administration staff with this new employee last year we added an additional vet tech out there to the animal shelter again for information to our citizens when it says medic unit 8 that's a new ambulance and my two requests have to do with health and safety in our police and fire departments one is a modest request from our fire department breathing air compressor we asked the fire chief about that last time he was at the mic and he explained it's a $45,000 piece of equipment and it helps our firefighters with their breathing apparatus the other ask and the chief of police addressed this last time was the parking lot fencing behind the police station it's 60,000 and it protects the vehicle and the property behind the police station and that's a 60,000 and they're not included in the city managers recommendations and I would strongly recommend those two add-ons I also want to highlight the very last item on this list internal audit and if this council approves the hiring of a full-time employee to be our internal auditor then that 72 727 would go towards their salary is that correct yes thank you and I'll go over all of these but I appreciate that the two items you listed that are not funded and there may be discussion of more of those type of items from the council the let me go over the second parks item the executive director funding we've proposed 35,000 that the city had entered into an agreement a few years ago and funded that at 35,000 so we 've proposed 35,000 there was a higher amount that was requested by the Parks Foundation of 77,000 we've recommended funding at the kind of the current level of 35,000 so that's not that the ask was to increase that salary so the city managers budget does not is not recommending that correct yeah no that's yeah that's what I wanted to make sure okay I'm confused because I thought that she was already we already had 35,000 so this was an additional 35,000 the the original agreement was for a three-year period at 35,000 and 15 16 was the last year of that agreement so they came back I don't remember what the initial discussions were in terms of I know the city had talked about kind of seed funding that for that three-year period they came back and requested a renewal of that agreement probably for the next three-year period at a higher level their request was 77,000 which was an increase for the executive director salary I think an increase in hours as well as some office support for the executive director and I think a little bit of supplies so their request was 77,000 what it's in the proposed budget is to simply maintain at the current level of funding of 35,000 a year okay thank you the animal services as mentioned this would fund one additional position kind of a administrative position front area receptionist position at the animal shelter for the fire department it's the funding of an additional ambulance unit station 8 which would be kind of in that hospital area on the southern part of town along I 35 and this is for the personnel the six personnel and the equipment also funded as a fire training captain and necessary transportation and equipment and the self-contained breathing apparatus there 's some other items that are one-time items that will talk about proposed to be funded this year for for the fire department in terms of the police department we've recommended funding the sworn operations personnel this is one lieutenant and four officers kind of to fill out their their power shift so to speak as well as some additional coverage downtown that the traffic safety package is for two traffic safety officers I think it's two lieutenants this is a net cost we've projected that there'll be an increase in municipal court revenues that will offset a portion of this by having some kind of dedicated traffic safety officers and also recommended for dispatchers a package this is five additional dispatchers we kind of call it police and fire since they dispatch for both services they're housed under the police department in terms of control and this is what was recommended in the study the five additional dispatchers to bring us up to that level recommended in the study Chuck real quick I know we have we fund a portion of the school resource officers do we have a breakdown of what that amount is how much is the total and how much the school district's funding and how much the city is funding we have that I don't have it available at my fingertips but we'll get it okay to you before we're done thank you I appreciate it in terms of traffic control this is a kind of a pavement marking enhancement program right now we rely on the private sector to contract out for all of our pavement markings lane markings and such this is an additional staff of two people to bring the majority of this function in house you'll see some of the equipment funded out of the traffic safety fund for this really what this gives us the ability to do with our kind of enhanced street reconstruction project if the council remembers we 've added like on the water and wastewater side an additional internal crew so we kind of have to to keep up with the program to do this this is really kind of in relation to that the pavement marking so they can kind of keep up with the street reconstruction with striping for bright bike lanes as well as just replacing all the existing pavement markings and striping that's necessary around the community does that include school zones like walk pedestrian crossings crosswalks okay thank you in terms of facility maintenance one of the things we did with the OCI study was also look at city-owned parking lots to see what was necessary in terms of beginning the maintenance long-term maintenance on those and this would kind of start that by some annual maintenance for parking lots it's a little bit below the level that was recommended but at least we'll get a start on that to begin maintaining our parking lots at least in their existing condition and you'll see in another some reconstruction one-time dollars we're proposing economic development there's an economic development impact model here that's recommended I should also mention for economic development there's some software that's going to be purchased I think through the Chamber of Commerce for economic development as well and in internal audit as you mentioned we have seventy five thousand that's currently budgeted we've had the last several years that we've used to contract with outside firms what we've added is we've added a total of a hundred thousand it's net seventy two to the general fund because some of the other funds pay a portion of that but we've added a hundred thousand so there 's a hundred and seventy five thousand available for council to determine how they want to use that so if we hired an internal auditor with the other funds help pay that salary yeah the total that will be for the internal audit function the total amount funded that's proposed will be a hundred and seventy five thousand so that can be used for the salary of an internal auditor or it can be used for contractual purposes or a mixture both I guess but my what point of clarification that if we do hire an internal auditor that that salary portion of it will be paid for by some of the other departments yes electric water yeah it's part of the it's part of the the cost allocation that comes in from those other funds so we've kind of looked at the cost allocation and how much of a hundred thousand would be paid from from the other funds and that's about twenty twenty seven to twenty eight thousand but the total amount budgeted in the general fund will be this hundred thousand plus seventy five thousand that's currently there for a total of a hundred and seventy five thousand available thank you there does seem to be some confusion out there with the public at least some emails and conversations I've had that audits are not being done because we do not have an internal auditor that and that is not the case audits are still being done what we typically do right now is we hire a third party to do an audit that is more specialized in that area to do the audit that that's correct I mean we've hired different firms for different purposes some of them we've done are related to payroll and overtime and we've hired a firm that specialized in that we 've done audits of our purchasing cards of our accounts payable and those type of audits as well as several others I know mr. Langley's got a presentation teed up for work session of the council to kind of go over historically what we've done with those funds in terms of other other audit so what we've done is is basically as you stated kind of picked firms that specialized in a certain area that we wanted to have done so if an internal auditor was hired that wouldn't necessarily mean that more audits would be done the same audits would be done just by one person you'd be doing it by an internal staff member versus contracting out yeah well okay not necessarily because it may be that the internal auditor is doing some of those audits and wanting to contract out others because of the specialized nature of those audits okay the likelihood of having an internal auditor that has the skill sets and the knowledge base to do all of the kinds of audits that we've seen done by contracting out that that that one person probably would not have the skill set to be able to do that I'm not saying I'm opposed to that right I just think that that you're gonna see that that's that some of those who could be put done in house but some of them would still need to be done on the basis of what kind of audits they are well and I agree with you and that's what I was getting at is I'm kind of on the fence on that too so anyway well said though and also important function of an internal auditor is contract review and as an example in the city of Dallas the Dallas auditor just picked up several contracts that were signed with vendors coming to Fair Park and the contracts had a lot of irregularities in them and he's the one who picked that up we are almost a one billion dollar city now and we signed a lot of contracts and I think an extremely important function of an internal auditor is going to be contract review with multi- million dollar contracts that come in and out of this city every week so an important they don't just do the math you know they help us do a better job and right now the legal team reviews the contracts sorry to cut you off who does that right now if anybody the legal department is required by our charter excuse me to approve for legal sufficiency the contracts all documents that go before the council require the city attorney's signature okay but this is a legal review I'm not talking about the business terms I'm talking about a legal review okay quick question of clarification so you do have in the budget sufficient funds that if the council decided to move forward with an internal auditor to fund it this budget year is that correct yeah the 16 17 budget year correct and and my point in saying that is we still we will have work sessions scheduled on this particular issue specifically so as long as we've got it covered for the purpose of this presentation not that I think that should suffice I mean because we've got all the specifics and the substantive questions still yet to be discussed among the council so and just as a heads up we're probably gonna take a break at 10 just want to give everybody heads up okay I do want to mention when you look at this total net cost of two seven eight three that we've also included the funding of street maintenance an additional six hundred and twenty two thousand but in terms of numbers how it works it's really a reduction in general fund revenue and an increase in street improvement fund so it doesn't necessarily show up as a supplemental spending package because it's not additional spending in the general fund it's reduction of revenue so I'll show in the street improvement fund all the supplemental packages that are funded by that growth and the other but just to let you know that that's an additional kind of impact by a reduction in revenue so it's it's similar to a supplemental package but how we have to do it in budgeting terms it's a little bit different but we have a plan for six hundred and twenty two thousand reduction in general fund revenues and the increase in street improvement funds Chuck as far as on this spreadsheet you handed out this morning and if you'll just point me to I'm sure it's in in a document but where we show other funds that they're funding you know all the different and that's why I don't you didn't need to answer them all specifically now but if you could just point me to a place where it identifies you know like where some of these other funds are coming from yeah and I'll go through the other funds in here the supplemental packages okay you got it later on okay that's fine but if you look over here there's there's a little table it's kind of small at bottom left one two three or four footnotes on them okay so if you when it has a footnote if you look at that it kind of tries to tie what other fund thank you is coming in we've even got the Chamber of Commerce for that funding of that one software package on there all right that's helpful thank you very much Chuck and in terms of supplemental packages funded in the current fiscal year this is where we're projecting revenues in the current fiscal year to be greater than expenses so we're recommending some one-time funding to basically bring down that fund balance to near net zero and these are one- time packages what we're proposing as security cameras additional security cameras at the libraries for the fire department the patient lift system this is kind of that gurney lift to be able to bring individuals into the ambul ances without so much pressure on the fire personnel and station alerting system kind of upgrades the alerting system when when they're dispatched at another station we're putting these in the new stations but also trying to upgrade the existing stations with this in terms of engineering services I think I'll wait to answer in terms of engineering services we're proposing and an ADA the American Disabilities Act comprehensive study for streets rights aways and sidewalks kind of to put together a plan in terms of what's necessary over the longer term to upgrade all of our existing street sidewalks and right of ways to meet the requirements of the American with Dis abilities Act we think this is kind of a necessary first step to have in place and a long-term plan to do that some other communities have been forced to make a very high dollar amount of expenditures in a short amount of time that weren 't addressing this issue and we hope with this study and a long-term plan to be able to address these issues and in a longer term method and not be forced in a shorter term method councilmember Gregory councilman Wasney had a question too but I want to give you a chance to get taken okay I'm wondering in this the supplemental packages these are one-time expenses these are basically from more revenue that we've received than we anticipated that we budgeted for and the total amount is 1.2 million is that the total Delta or was there extra was there more money actually available for some one-time expenses I think there's a bit more let me look in the that's what I was thinking but I'm having trouble finding the sheet real quickly and and I should say it's revenues coming in greater but it 's also spending less in some areas yes I mean one of the big areas is our savings and fuel has been pretty significant this year so some of it is that and our actually our salary savings have been a little bit higher get to the general fund budget in terms of what we estimate even with these expenditures we have about 400,000 still that would be available if you wanted to bring that up based on based on our estimates for one of the things that I want time expenditure then with that in mind a couple of things that I would suggest that we consider I don't know if this is the best time but maybe maybe some for somebody to put some placeholders and some notes the item that ms. Wasney brought up about the safety fencing for the back parking lot at the police station but maybe even looking at going a little bit further with that because I think that the estimate was for chain-link fence which is against code and in terms of I went out there and saw that lot with the chief looking at that it would seem to be maybe a solid type of offense might be might be better to look at so look at that look also at the cost that might be involved in shutting down that frame Street no it's an odd Street because it kind of circles around so going into that lot it's exposition and then it becomes oak and then it goes out on the north side being called frame Street but shutting down the East oak part of that Street so that there's no through traffic in there anymore which would be a great enhancement to the safety of the folks so that there's not folks that can just drive through the lot and check things out so I'd like to see that maybe part of that supplemental package the other thing I would like to see added to that one-time funding is the study that I requested for the work that we need to do to preserve our the cr umbling parts of our two cemeteries I think that we estimated that to be about a hundred thousand dollars that would be a one-time funding issue because I'll remind folks that we we saw pictures we took a visual tour I even have a poster of some of the pictures of that visual tour of some of the crypts that are falling apart and some of the tombstones that are falling apart and the fact that our staff doesn't have the training and the knowledge and nor the time nor the equipment to to prepare that so I would suggest those two things be added to the supplemental funding and I would direct counsel to the very last page of the handout that you have and there's an excellent list of all the items that are being paid for by the traffic safety fund and it's 1.1 million in terms of a lot of the important supplemental items that are being paid for in this budget just point of clarification the traffic signal replacement that we see up here the three hundred and forty thousand is that the replacement that's being funded by the traffic safety fund no that's an additional traffic signal so there would be one traffic signal funded out of the traffic safety fund and one funded out of here and it's later on in my presentation but I've got some details on the total number of traffic signals in the city in the age of all the traffic signals to kind of explain why we're trying to you know find some sources of funding for replacement so this there would be two traffic signals replaced with one time funding one out of the general fund supplemental in the current fiscal year and one out of the traffic safety fund and then to clarify we also have two signals that are also part of the bond package so it's really a total of four correct signals one from the traffic safety fund correct it's paid for two in the bond and so this is a real chunk of change three hundred and forty thousand for the fourth traffic signal replacement just want to clarify that correct and I'll give some more details on the traffic safety traffic signal excuse me inventory in the city and go over that a little bit later thank you a couple things I'll go ahead and do this now because councilmember Gregory threw his out we're gonna hear later on the presentation about a request I'd made about some emergency services grant funding from for one time so I just want to put that in there but and I mentioned this last time the downtown sidewalk improvement for two hundred and seven thousand dollars we need to have a conversation about is that something or some of that funding do we want to look at the TIF because this is downtown funding even if you only did half which is a hundred thousand that covers probably the police parking lot or you know something for the fire department so I just I want to bring that back to the forefront to say you know and that's why when I think we have the TIF slide later on and we see that increase that you know that'll help us to have a little bit more understanding yes and the reason I brought up the traffic signal replacement of the three hundred and forty thousand we already have three traffic signals that are funded because of this dramatic withdrawal of funding for some of our nonprofits we're looking at three hundred and forty thousand dollars there that we could move from replacing a traffic signal to helping to fund the monies that have been lost by these nonprofits that we're trying to figure out where are we going to find the money my recommendation is there's three hundred and forty thousand dollars that we could move from a traffic signal replacement into that discussion of where are we going to find this funding okay all right thank you it's good I'm sorry and I tell you what let's go to a question from councilmember Gary and then as you wrap up this slide we'll take our break actually yes along the lines of what you're both saying about the different sources of funding for some of these items that we're talking about you know when we talk about any time I see something like this I'm always thinking of where else the funds can come from aside from general fund and to the extent that you can help us see other eligible funds to pay for this I think it will help our discussions about budget priorities thank you in terms of parking lot replacement we're proposing to kind of start off the replacements with the kind of the back lot of the Civic Center in terms of replacements I think what's been identified in terms of through the OCI study what needs to be replaced in parking lots is about a million and a half I think it was estimated about a million and a half of replacement and about a hundred thousand a year in maintenance so we're we're kind of edgy starting out with that not really getting up to that full level yet but trying to do some of the replacements over time and then build up toward that hundred thousand and maintenance to maintain that necessary infrastructure again there's some downtown sidewalk improvements a portion of these are funded out of the traffic safety fund and a portion here I think the totals about 350,000 between the two of them and then the traffic signal replacement is what's proposed here so with that I'll move to the next slide we'll take a perfect timing ten o'clock on the dot so let's take about a five or ten minute break five so our net cost is roughly about five hundred about half a million correct okay thank you I'm gonna switch and I and I will get to the other like the special revenue funds and some that we have available from other sources but I'm gonna go over the internal service funds supplemental packages in terms of fleet services conference room some fuel truck cost the fuel truck is actually going to be financed by debt and paid by fleet services this is some additional cost some software replacement and a little bit of facility expansion construction funds to be paid from fleet services in materials management we're adding a position in the warehouse there's really no as you can see no net new cost the warehouse adds a little bit of markup to their merchandise to cover their cost and because of the city's kind of heightened capital program we have more demands for purchases through the warehouse so this position will really be covered by the additional revenue brought in by the additional demands this is really just to keep up with the demands at the warehouse and the distribution center covering we're going to take some of the fund balance from the materials management fund to cover some additional materials it's mainly water and wastewater piping that if it's in the direct sunlight can cause some degradation over time so we're just really adding a cover not a full building but a cover to be able to expand what we can store at the warehouse safely in terms of technology services and let me point out for technology services some of what's done by technology services is we have you can see some large one-time replacements in here like the Cisco equipment they tend to build up a little bit in their fund balance and then make those one-time kind of large replacements as are necessary so you can see there we're doing an upgrade to the fire incident reporting system I think the chief talked about that upgrade during his presentation we're adding an additional FTE and technology services for an application specialist the replacement of some of the Cisco equipment some of the back-end equipment DME has some capital costs that will be repaid through DME application automation enhancements disaster recovery some additional radar information for fire and disaster recovery services for public safety and upgrade for public safety are all out of the technology services fund yeah councilmember Hawkins. Chuck on DME capital costs you said how it's going to be paid back by DME why is that still shown like that as an expense then? Because it's an expense in the technology services fund the technology services fund is an internal service fund so it charges out its services to all the other funds of the city like general fund electric utility fund and those kind of things so any technology improvements are paid out of the technology services fund and controlled by our director of technology but depending on who the software is for it'll be paid by that fund or group of funds and in terms of the risk fund we're adding a claims administrator to handle the workload there and engineering services adding a development review senior engineer if you remember last year as part of the kind of improvement to the planning process we talked about those teams the four teams where we have fire personnel and planning personnel this gives engineering services enough staff to have a team member on each of those four teams so kind of bringing that up the question and this probably comes up every year because it's can get so kind of confusing on the internal funds so let's just take tech services for example they provide tech services for all the different departments so from the general fund whatever services they provide to departments from the general fund like parks city manager's office and those kind of things those budgets of those departments include a transfer back to those particular internal funds correct correct and so since those budgets include that then that means let's say there's if there's an increase in the tech services internal fund budget because of the different things they're doing that could depending on how that's all app ortioned create an increase in the budget item for departments within the general fund I guess correct because sometimes we think of internal funds and well they don't really impact the general fund and they don't directly but they they do so if all of a sudden there was a five million dollar increase in tech services for some reason which there's not going to be that gets apportioned out which directly is reflected in the budgets of those departments that consist of the general fund is that is that correct okay I just want to make sure because sometimes it seems like that's just sort of money that comes from somewhere but it comes from these departments that have budgets that do spend money through to the general fund or rate payers or things such as that that's correct okay thank you in terms of the supplemental packages in the special revenue funds the police confiscation fund we've proposed I think it a recent meeting the police chief had talked about some additional needs that he sees for body armor and helmets so we've proposed to pay for that out of the police confiscation fund kind of a one-time cost out of the recreation fund they're using some fund balance for kind of a refresh of some of their fitness equipment they try to do this every so often just to keep their equipment in good condition in terms of the street improvement fund I had mentioned a couple things we've got a little over a million in terms of growth of revenue the majority of additional growth and franchise fees and the 622,000 so this is what's being proposed in supplemental packages or new packages for that additional spending in the street improvement fund they propose to put an additional 200,000 for base failure maintenance an additional 500,000 for overlay material and support an additional about 175,000 to their micro seal program and a 700,000 for an additional street maintenance crew and required equipment so they're really adding a full new crew in terms of street maintenance so that's an ongoing expense correct and have we sort of forecasted how this will help in achieving our OCI rating because I presume this is part of the program to do better maintenance so that we have less reconstruction how do you have any matrix or data points on doing this will or not doing this will push us out further doing this brings us in closer to our goal any kind of what what analysis do we do on that well in addition to the the automated street report that we've just received that information as to how that funding would improve OCI to meet our objectives councils agreed to in the strategic plan is in that report but then we also look internally at how that funding may impact OCI over time or not depending upon the level of funding that we get so we do have some matrix and can produce that information yep okay thank you and when the supplemental packages are originally turned in are these items identified out of those packages where they can be funded through special revenue funds or are these in addition to those supplemental packages that were turned in it's kind of both some some supplemental packages are turned in to be funded out of a special revenue fund like Street Improve ment Fund they turn in their supplemental packages from there but some of the other supplemental packages are turned in by departments is kind of I guess you call it general fund supplemental packages and we identify special revenue funds that potentially those could be paid from okay so it's kind of a mixture of both like for example here the the helmets and body armor kind of came about later in the process but that would have been I guess you'd consider potentially general fund supplemental package that we identified that special revenue funding from and in terms of the traffic safety fund and this is an area where we've taken a lot of the requests that were I guess you term general fund supplemental packages and tried to fund them out of the fund balance of the special revenue fund and the majority of these are all one-time funding the ADA program this is really if if you think about it when you're at a traffic signal and you remember pushing the button to be able to cross part of the ADA requirements now is it also has to have a sound associated with it so those that are vision impaired can can cross the signal and know when it's time to cross and not cross so this is an upgrade to about five major signals around the city to meet those new requirements it's not a total replacement of the signal just that portion of the system related to the kind of the crosswalk portion intersection radar detection is really when you come up to a traffic signal and especially where one road is a major road and the other is a minor and it may not change the light until someone comes up and kind of kicks it off this is a more efficient way of doing that technology we find a lot of times that it doesn't recognize bicyclists coming up or pedestrians coming up or even motorcycles coming up sometimes so this is kind of an improved technology from kind of the older technology and again just doing some of the intersections there's another traffic signal replacement and later in my presentation I'll talk about the age of all our traffic signals to give you an idea of why we're trying to emphasize that the pavement marking enhancement we talked about the new crew pavement marking this is the equipment for that new crew that we identified could be paid out of the traffic safety fund preemption this is for emergency services where they're coming up to a light and can kind of change the lights in front of them to improve their flow make it faster for them to get there these are doing some additional signals in town and elected officials are going to get that technology too right I think I think you have to ask the new city manager about that maybe be a good interview question the bike count program but pedestrian bike marking safety signs the bike count is really to have automated equipment to go around and do bike counts versus visually having to go do it and some funding for just safety markings and signs the bus stop improvements if you remember I think it was last year we spoke with DCTA and they were making bus stop improvements they continue to do that but when they get to those sometimes there's a small amount of city funding that has to come in say we have to do curb cuts along the sidewalk or extend the sidewalk a small amount so we do this in conjunction with them adding those additional bus stops so they hope to you know do a certain number of bus stops each year I think it's about five or six that's planned and so we have a small amount of money to be able to do the city's part of that and then this is the other part of the downtown sidewalk improvements I think there was 207 out of the general fund in 1516 and this is another hundred and forty five thousand out of the traffic safety fund the traffic signal pre emption program my family is convinced that our automobiles have the traffic safety safety signal activation program because in about 36 years I think only two times have we hit the intersection of mingo and Bell and gotten a green light I'm just certain that our car activates the red light signal but but the question on all of that traffic safety money where does that come from that's really the the the red light camera fun per se it's it's called the traffic safety fund and so those revenues that are retained by the city part of that goes to the state right in terms of that that portion that's retained by the city can be used for specific purposes under state law so I'm counting it up and I think it's about 1.1 2 million that you're proposing this year how much of a balance then would we have in that fund after after we've used that money we were estimating we would start off this year at about there as of 10 115 we had an audited balance about 1.3 after we use this and based on the revenues this year we estimate we'll have about 1.2 million at the end of 9 30 17 still available as you remember there was some discussion where if for certain reasons if we ended that contract early we would still have some obligations under that contract so while that contract still not completed we're trying to maintain some portion of a balance to cover ourselves in case that occurs once we get to that point then we'll probably recommend budgeting the vast majority of that revenue other than a small fund balance for specifically track traffic safety enhancements allowed by state law yeah help me understand you said if for some reason now my understanding is according to the contract if the state legislature acted to end the the red light camera program that we would not be required under our contract to pay the the server the provider any funds back is that correct that's correct but if it was a decision locally to end that program then we would be required to pay them some kind of a balance back correct do we know what that current balance is that we would have to pay him back I mean I think it's wise to keep enough money in there just in case but but I think it would be wise also to spend any of the money that we don't have to to use for for these kinds of purposes yeah I don't I can't quote you the exact balance that it would be required to owe because it would depend on when that occurred right but most likely what we've heard is in this next legislative session that there's going to be a change in the transfer and in the law that will require cities to conduct a voter referendum in order to keep the program going which is actually not going to qualify as the state outlawing or changing the law to to do away with it so that would be a local decision then which would require us to be actually in breach of the contract to stop the program and then we'd owe some money so we're trying to make sure that we would have enough in case the legislature is successful in passing that and in case the voters rejected it correct okay well that's that's wise if you could you know y'all could do a little number crunching and you know anticipating time frames to see what that would be I I think that would be helpful for yes okay I can get that for you today thank you so back to that three hundred and forty thousand for the traffic signal that we're looking at coming out of general fund to confirm we have approximately 1.1 million remaining in the traffic safety fund well we're projecting it at the end of 930 17 we project about 1.2 million remaining we currently at the beginning of this fiscal year had about 1.3 with revenues less expenditures this year and 16 17 and these drawdowns we project will be at about 1.2 million by 930 17 so something to consider if we want those four traffic signals is to take the 340 out of some of that traffic safety fund and it would allow us to use that 340 again to help fund these nonprofits question to if it goes to a vote to the people that just in terms of timing would not hit until November of 2017 correct well I think it based on the legislature meeting I don't know if they could hit may I would guess yeah the trigger would be November the trigger would be too short to put it on the May election so it'd be the November election my point is we would continue to collect red light funding up until that election and then even then I'm sure they would pick a target date ahead of that or behind that ie 2018 for something to be effective so I'm just saying I think there might be some money for that fourth traffic signal in that traffic safety fund to free up that 340 to help bridge this nonprofit shortfall how much what is the percentage of the revenue from a red light violation via the cameras that goes to the state do another percent didn 't it a flat percentage for red so it's 50% after cost after after our cost we have to do you know we have to pay to review each one of those has to be certified that is a violation so after our cost we pay 50% to the state and I want to sort of echo Councilmember Gregory sentiment about it'd be nice even during this discussion if we were able to get the figures of if it were have to be paid off next year what that would be okay check in terms of the general fund projections and this is the five-year projection and let me kind of I've got two two options in here and I've put as the first one this is including the ten- year franchise fee transition so this plans as we stated this year we're moving six hundred and twenty two thousand from the general fund to the Street Improvement Fund in year two we would add another six hundred and twenty two thousand year three four and five so the cumulative amount would be about three point one million over the five years about half of what was in there at the beginning of this fiscal year so this assumption draws on that the other basic assumptions in terms of four percent growth in assessed value three percent growth in sales tax the compensation package and such are built into here I've got one of the additional item in here that's broken out if you remember we entered into an agreement with you Denton County Emergency Service District number one for the support of the fire station that's going to be just outside the city limits of Denton but will provide support to that area with that agreement that kicks in and not this fiscal year but the next fiscal year so I've got that dollar in there and then it declines over time but that's kind of a contractual obligation that we've already made that we're going to need to fund in 17 18 so under those conservative assumptions when we do do the 10-year franchise fee transition I've tried to put what 's available for new general fund supplemental expenses and you can see again under those conservative assumptions if we do better than this we'll have more but you can see there's just very small dollar amounts in 17 18 and about 200 to 400 thousand a year available for what we call recurring supplemental packages so with that I'll answer any questions you may have and you can I should point out you can see where the fund balance ends up I have tried to set these projections where revenues are equal to expenditures you can see that the fund balance declines just as a as a percentage as our expenditures grow if the fund balance were to stay the same dollars as a percentage it declines a little bit so just so I understand on in this a great idea we've been talking about this for a while so 10% of what is in the franchise fee is that six hundred and twenty two thousand dollars correct and then the next year we go up to 20% of that but additional money will be going into the franchise fees account right or is that additional money that goes in well you know right now all of the growth in franchise fees goes into the Street Improvement Fund so under this 10-year plan by the end of year 10 there would be zero franchise fee revenue in the general fund it would all be in the Street Improvement Fund. Thank you. So just so I understand your last line there on the franchise fee let 's say we didn't do that let's just say then we would go back and add that number back up to the revenues is that correct? Correct and I've got that on the next slide if you want me to kick over there I appreciate the segue Mayor. I like the concept the one anxiety that I have is we are able to collect that franchise fee because the state allows us to is that correct? Yes I mean it's under it's under state law that we have the ability to collect the franchise fee and some of those franchise fees are from the city's internal utilities. Right so we could continue to do but here's my concern with the attitude of some folks at the state level of trying to impede local government because they think that local government is somehow taking away freedoms from people they might very well as they've done in the past to try to restrict us from collecting a franchise fee. So my only anxiety about about us relying on the franchise fee primarily is our way of funding street maintenance is if something were to happen at the state level to make the franchise fee go away . So we might want to make a note and consider in our legislative package this year as we're talking to our preparing our thing to make sure that we have that as a point that we would like to be able to continue to keep that or maybe we want to not mention it and give them some ideas and they don't already have. I'll take that on as my new talking point because my marketplace Fairness Act is not working. In terms of to show what it would be without the franchise fee transition now I've left in the proposed budget for 16-17 that has the 622 but basically it would stay flat. We would have that 622 but we'd maintain about 5.6 million in the general fund and really the change that that makes if you look here is to increase what would be available for other supplemental expenses. If you remember this was about 8,000 at 630 so those additional funds would be available for other supplemental programs in the general fund so it's just a priority between street maintenance and potentially other supplemental programs. And just to make that point because it was in our budget book that it's the that allocation of franchise fees is totally at the discretion of city government correct? Of the City Council. City Council yes thank you. And here I'm going to give some projections for the Street Improvement Fund and I know this is a little bit smaller numbers but I like to go back historically to 11-12 to see where we were at. I've highlighted 16-17 you can see we're proposing revenues with the additional 622,000 of 12.965 and operating revenues. You can see operating expenditures a little bit higher we're drawing down some fund balance for some equipment in the Street Maintenance Fund and projecting a bond sale of 6 million for total expenditures related to street maintenance of 19.3 million. You know to give some history if you go back five years to 11-12 total operating revenues about 6.1 million so we'd a little bit more than double that within the five-year period by 16-17 and if you go out you can see the growth we go from just under 13 million out for years to just under 19 million in terms of operating revenues for street maintenance and I've got that last 6 million in red the bond sales from the 2012 and the 2014 election run out in 1920 so any additional bond funding would be dependent on a future bond program and to kind of compare that to the other slide without it we would stay the same in 16-17 at this 12.965 million but the growth in operating would not be as high this is a little bit more than 2 million below what the other projection it would just by not transferring the additional franchise fees. This is my attempted a chart on the traffic signals to give this to the City Council there was a lot of discussion actually during the bond committee of the traffic signals and that was one of the items where they were scheduled to replace 12 traffic signals. The city has a hundred and currently has a hundred and sixteen traffic signals and I've tried to do a little table here that kind of shows their age in years. 34 of the signals are 30 years or older we have 13 that are between 35 and 39 years and 21 so kind of the the 12 from the bond program would take care of that first tranche 35 to 39 but you can see that next large tranche of 21 of them that are continuing to age so with those two that's really what we're trying to do is to kind of start attacking that next group and then you can see we kind of edge down after that and then come back up in terms of younger signals. Are there any questions on this? I think it's a challenge to this council if in fact each traffic signal is three hundred and forty thousand dollars and we're looking at an aging infrastructure when it comes to the replacement of those traffic signals to try to get creative on how long term we want to try to set in place some kind of funding mechanism to so that each year in our budget we don 't have sticker shock to the tune of three hundred and forty thousand dollars times one or two or three coming out of the general fund and the franchise fee what is our total franchise fee revenue income stream coming in six to seven million is that correct? No in terms of between the general fund and the street improvement fund we have for 16-17 it's about eleven point six million that goes into the street improvement fund and we'll have about five point six million so about seventeen point two million in total and franchise fees between the general fund and the street improvement fund for 16-17. So my challenge is and I certainly don't have an answer because we need to think long and hard on this but I think we can come up with a better plan than we have right now of just seeing some of these astronomical traffic signal expenses in our yearly budget that let's try to think outside the box as a group and figure out how to fund this long term don't know if the franchise fee is a possibility it might be but I think it's a challenge for all of us to try to come up with the plan so that as I respect the fact that we do have an aging infrastructure and that we do need to you know mindfully replace these traffic signals but boy it 's expensive and I think the best way to do it is to try to figure out long term and so it's a challenge for council and challenge for staff on how do we move forward in future budgets and future plans on how do we start alloc ating a fund just like we made that decision to allocate funding to improve our streets let's try to figure out on this income stream how do we allocate some kind of funding to replace these traffic signals thank you oh am I wrong to assume that it's substantially less to operate a new traffic signal than an old one or not really is that too technical of a question well we have some technical experts in the audience the mayor's getting antsy with this question no no not at all not at all major operational fish efficiency the power requirements might be slightly less but that's not the component I think the concern about the price tag of the signal is is it really includes the intersection and upgrading the intersection to ADA compliance so there's a lot of concrete work okay and sidewalk work and ramp work that's also required just the pedestrian crossing for example it's not a signal that was about a hundred and fifty thousand dollars and you know why was that for a pedestrian crossing and it's like well there was a lot of concrete work necessary to bring that intersection up so that's something to be aware of well Em erson Voro likes it because it makes his restrooms look much more reasonable right right but I simply just use that as an example because you look at well why did that cost so much and it's well there was a lot of concrete work associated with the crossing I thought I had stumbled onto a good idea in my brain but it sounds like it needs a little bit more work so sorry this happens to me quite frequently thank you thank you in terms of the downtown and the West Park tours when you're talking about other special revenue funds that can be used for specific purposes the downtown tours was established in 2010 with a base value that's 79 million and the 2016 taxable value is 136 million so the growth and taxable value the revenue from that from the city goes into this fund and the revenue for 1617 is 368 million in terms of what that can be used for is kind of downtown improvements and it there's a separate turs fund that kind of recommends the expenditure of those funds and then it comes to City Council we do have some funding in there for an incentive for the rail yard project that's budgeted but we haven't budgeted any large capital projects out of there I'd like to put it to the Turz board number one that our sidewalk funds our sidewalk improvements in downtown be taken out of that fund yeah I second that and I I'm trying to think the cost on those sidewalks 200,000 do you remember well that's out of the general fund another 145 is out of the traffic safety fund so just if you want the whole cost to come out of there if you just want part of it all of it what I'd like to I like the idea of starting to use some of the funds that are coming in on the yearly basis but I think that we need to be mindful of some of the larger goals that we want to keep so I would I would be more in favor of taking the estimated revenue and using half of that in terms of yearly projects to improve downtown and the other half to to continue to increase the the balance of that fund because when we come to the point as we know that we will for some major expenditures we want to have enough money in there to do that and if we start spending that now spending all of that that fund will never grow we'll never be able to do anything else with it I just want to say that sidewalks are a major project and they are critical to downtown so I stand behind a request to pull out the 200, 000 for sidewalks and let the what was 145 out of traffic safety fund and and let that stay there but the 200,000 that was pull it out of the downtown turfs kind of respond to councilmember Gregory if you recall we're in the process of doing a facilities needs assessment currently which will include what the needs will be for our next City Hall in the January retreat that we had with City Council you all directed us that whatever that recommendation is going to be to make sure we keep it in the downtown area and we are going to be coming back to council with our consultants in the October time frame and what probably what's looking like the recommendation may include some sort of parking structure as part of that next City Hall of which the downtown TIF funds could be used for that portion of the construction so just wanted to remind you that there is this discussion that is teed up for later this year with council as to how to moving forward and trying to address our space needs and one of those would be the way will the next City Hall look like and what would be some of the features one of which is probably going to be some sort of parking structure yes councilmember Gary I don't know if you've seen some of the pictures of the sidewalk area around the courthouse in particular there's a dispute as to who owns that sidewalk but I would just like Madame attorney to please discuss some of the potential liability issues that exist for the city if those sidewalks are not repaired post-haste and not just restricted to that square area but the entire area does the city stand to potentially have liability associated with not repairing sidewalks I can I can give some general information and perhaps not address it to to that in particular if that would work for you or I can give you a status report and and address that with particularity but let me if I can at this point in time just address it with general generality as it concerns defects it would depend on the nature of the defect and the knowledge that might be residents with the city as it concerns any potential defects there's a rather complicated equation that we look at with regard to immunities of a city as you look at these kinds of issues so without going into more detail and leaving it with gener ality I will agree with you that there are some issues as it relates to the sidewalk around the square we are in consultation at this point in time with the Civil Division of the district attorney's office as it concerns this issue and our engineering department is in consultation with the county as well as we look at some possibilities about the sidewalk around the square I will say I believe it's it's fair to say at this point in time it is our view that that sidewalk is not the city's it does in fact belong to the county it's interesting on that point that when we were talking about parking issues a while back the county was claiming that they own to the middle of the roads of all of the roads around the county courthouse and that all of that parking that was adjacent to the courthouse was theirs but that when there were problems with repairing it they were happy for it to be ours so so it'll be interesting to hear what the what the legal ownership determines well and in this I mean this is a good discussion that obviously we need to have in the future but right now we're talking about the funding of this sidewalk prepared for what I understand you're saying is that's really the question for you is where do we take this money from we need to do it we need to fix it yeah point that I'm trying to make is that you know you can talk about projects in October December or whatever and increasing that fund but the fact is that the city has needs right now and not only has needs but there are potential liability issues associated with those needs so I think that it behooves us to be prudent with meeting our obligations at the present time that's what that's the point I was trying to make thank you to comment to mr. Cabrales it's a big if this council appro ves a downtown new City Hall so it's a big if a parking garage is included which would be millions of dollars to councilwoman Baguerre's point our need right now and our discussion today is how are we going to fund some of this sidewalk repair in downtown and my point is if this is a fund to help downtown then it behooves us to look at that $200,000 cost for sidewalk funding to come out of a fund right now to address that immediate need so again it's it's need right now versus something that this council hasn't even voted on or approved all right so okay and I'm sure we've got some we've got another work session scheduled for that particular topic specifically so I just this is just a funding issue right now but it is an important topic we need to discuss sooner than later thank you and just to mention the second tours that the city has the West Park tours the value base year value is under 19,000 2.4 and the revenue for 1617 is just about eight thousand five hundred dollars in that turfs in terms of some other special revenue funds the tourist and convention fund we estimated revenues at 2.3 to 4 million and I believe you should have at your places the proposed budget that was put together by the hotel occupancy tax committee this week and so we'll entertain any questions on that proposed budget we've really proposed this to spend the amount of resources that are estimated in terms of revenues 2.3 to 4 million with increases to the majority of the applicants you have a question so understanding that this just came out today third line item the Chamber of Commerce CVP 1 million eighty four thousand nine hundred and ninety five dollars it's an increase of a hundred and sixty seven thousand dollars over last year I know that planning came forward in a work session talking about bringing some of those services in-house in terms of what the chamber does and what our economic development in-house so I would like to see a breakout of this 1 million eighty four thousand and kind of a line item analysis similar to what's here on what makes up that 1 million dollars and where where the economic development change in terms of bringing some of the marketing tasks in-house I would assume it would reduce some of this funding I'm just confused on that if if we could have a broader discussion on that that would be helpful for me a couple things we can we can give you a breakdown of their request of these funds we've got that let me try to clarify a little bit there's funding from the hotel occupancy tax revenues that go to the can to the Chamber of Commerce for their Convention and Visitors Bureau for the marketing in terms of tourist destination and then we have a separate contract with the Chamber of Commerce related to the economic development program and that's a separate contract that's funded out of the general fund and I think there's going to be some discussions of that contract at an upcoming work session that Amy will be leading so I want to make sure we segreg ate those two issues but we can give you a detailed and the question and answers will add it to the council kind of detail of their proposal and what was funded and I appreciate that and I understand that you just received this so it's it's early so thank you. Councilmember Hawkins. I chair hot funds what the the initial request was they wanted some money for CVB Welcome Center in there too I believe it was for maybe some additional staff if I'm trying to remember correctly so I think what we had decided as a group was just to give the additional money just all kind of in one account there and let them break it up as they saw fit but most of that was to for promotions of the Convention Center is that correct I'm trying to there's been a lot of meetings this week but Convention Center is kind of one of those newer items that even though it's not going to be standing here soon they do need to start promoting it and start filling that space so that was and Chuck will provide that information but I believe that's what most of that additional money was going to be used for if I'm stating that correctly. That's that's how I remember it also. Councilmember Begay. I'm wondering for I have two questions about particularly the CVB and chamber funds that they received just because it is one of the largest line items. Do we have a policy regarding how we we distribute hot funds in terms of if it 's for rent I mean is there we just give hot funds and it can be rent employment anything so that's my first question is is there a policy guiding how hot funds can be used because I know they are restricted by the legislature but I 'm curious if we have our own internal policy with that regard. The second thing is I seem to remember with the CVB that this was not going to be an ongoing funding need so I'm wondering is this something that's always going to come up on the hot funds like is it a five-year plan for the visitor visitor shop or is it like a one or two year plan what's what's the timeline that we're talking about? Some of the costs this year they're only open half a year so some of it was due to rent if I'm remembering right and then some was an additional staff is that right Chuck do you recall that? Yeah I think the majority of it was additional staff as I remember but we'll have to look at their request and we do have the committee has a policy that we send out to all the applicants with the when they apply for hot funds and so we can provide you with that policy document it's kind of approved by the committee each year prior to applications being received so we can also provide that document to you so you can see kind of the policy that that committee set for applicants. The tree mitigation fund I wanted to mention that since we made some additions last year we're continuing to budget funds for the KDB tree planting and their rebate program that we set up last year we've also got additional funding of five hundred and four thousand for tree planting in city parks for additional trees and I've got the number if I can put my hands on it that's funding for planting of approximately 720 additional trees around city parks. Councilmember Begayar? I think Council woman Briggs and I brought this up at maybe one or two meetings about the potential potentially using some of those funds to plant fruit trees or nut trees we haven't heard anything about that so if possible I'd like to hear if some of those funds are going to be used for those particular types of trees and if not why not? Thank you. You want to hear that now you want to? Yes we have every intention of planting a small orchard in the Bowling Green section attached to North Lakes Park you pick it. That's it's a plum but that's okay. I would maybe just promote it because it is a popular topic and you know there's no reason that the Parks Department shouldn't be proud of doing something like that it's very forward-thinking. Certainly will. Thank you. Thank you Mr. Ortiz. With that I 'm going to turn over the next part of the presentation to Mr. Puente I know you 'll be sad to see me turn it over to someone else but I'm gonna let him do that and then I'll just have a couple comments at the end. So we got through the general fund budget presentation in about two and a half hours. It's because Kevin's not here. Alright thank you Chuck. Mayor, City Council, I'm Tony Pu ente here to present a couple the next few slides Chuck will be back. Oh yeah so he'll be back on a couple of the slides. I was told that I had two minutes so I'm just kidding. This generally gives you an idea of what an average customer for our utilities will experience as a result of the proposed rate increases and I will go into detail on those rate increases here in the next few slides but in total and I just want to point out that this is a theoretical average customer you know not one customer necessarily sees this you know these averages and so you have to kind of look at them by utility but nonetheless the result of the increases is $3.42 per month that's about $41 a year and like I said next couple slides will go into a little more detail on what that actually means per utility. The water utility, the focus again as Chuck has previously stated is infrastructure replacement. The five-year CIP that's being proposed is totals of a hundred and twenty three point one million dollars of that's a 42 million of new debt over that period of time. Within the budget is the continual effort to mitigate and reduce the impact of zebra mussels that are as you know are an infestation to our area lakes and cause quite a bit of damage to our infrastructure. Proposed within the water utility budget is a five percent increase in rates. In the next slides we'll go through and show you the the rate increases over the five-year period. The water utilities is proposing seven new FTEs and you have the breakdown there and we further broken out the specific positions within the proposed document that we sent to you. Yes Councilman Wilson. And what was the rate increase last year? I think it was was it four and a half? It was five as well. Yes ma'am. So another five percent this year I just want to go on the record that it's that's a lot so I know you're gonna you know go through the justification I just want to go on the record whether you're a residential consumer or a business owner that's a that's 10% over the course of 24 months. All right to get into a little bit of the five-year forecast for for the water department for the current fiscal year 15-16 they are projecting a net income of 7.7 million as we 've previously discussed with you. The bulk of that is as a result of the other release of some of these revenue bond covenant dollars and that is a one- time revenue stream that comes into to the water fund and that's causing that. Over the five-year period down here at the bottom you can see that the proposed rate increases are four or five excuse me for 16-17 as being proposed four percent three two and three percent over that over that period of time. If you have specific questions about the the water utility is certainly we have staff members here that can get into the details some more with you if you'd like or I can go ahead and push on to to the wastewater fund. I have a question and this will probably question will transition over to the utility funds as well. This infusion of funds from the refinancing and the release of the reserve funds is happening so we're the wastewater water electricity are going to get some funds back. So what's the I mean we're looking at seven point seven million dollars and I forgot how much let me look here. So proposed budget okay you've got a you've got a zero proposed but you got a fund balance or an additional seven point seven million dollars. So why is not some of that used to to supplement some of the operations moving forward to decrease the increase of the rates? I'm just I'm sure the excuse me the seven the seven point I thought it's seven five but the seven seven that we're talking about that was or the seven five that was taken in and I think it was for something on water I mean wastewater we've used that in two ways one to fund what we call revenue funded capital so it's a one-time expense and then the other was to replenish the development plan line balance that was utilized for Winko and so we were used it in two ways and primarily in both water and wastewater it was done to use was used for capital expense one-time capital expense and then to mitigate the development plan. Good I appreciate that so my question then becomes and so the plan the plan line for the drainage for the water infrastructure for the distribution center I think that contribution was that a million dollars? Yes it was million dollars in water. So have we replenished that to its entirety back to a million dollars? Not the first year no sir over a period of five years four years. Okay I would be personally this is just me so I would take another look at maybe doing that quicker because I think we may have some projects later on that if they need infrastructure requirements and this is money that that's just me and everybody's got a different opinion on how to spend that so I'm not saying I'm just saying I think that I would like to see that replenished faster that because it sat there for 15 or I don't even know how many years before it was actually ever used I think if I remember correctly. We've had a number of smaller projects but to the extent that you saw this last time no it's been a while now we can do that but the thing about it we do have a policy that was approved that limits that contribution to those funds to 250 no more than 250,000 a year so that's kind of why we took that over. Sure and I think part of that policy was to not put such a burden on the rate payers to make that large contribution within a single or two-year time frame that's correct. I don't know if it contemplated that you would have so I think this is probably worthy of some additional discussion not just with this fund but probably the wastewater and the other funds as well just to get an idea of how it's being distributed and if if there were any other ways that we could maximize that. Okay and I would say that if you go back to the questions that were provided for you I believe the answer of exactly in much more detail than I've answered here how that funds were utilized it's question number 12. That's correct. Thank you. Okay any other questions on this ? And just to add mayor based on that memo four and a half four point four million went to to wastewater and about five point nine million to electric. Fantastic thank you. So in the wastewater utility again just like in the water utility and these are you know heavily infrastructure focused the utilities is the same focus for the wastewater utility certainly meeting certain regulatory requirements related to to phosphorus and expansion and rehabilitation projects is something that's a focus in in this fund. The five-year CIP for this fund is six sixty three point three million approximately 19 million of that is is new debt over that period of time. The proposed rate increase in this fund is that is two percent. They are proposing to add one new F TE in watershed protection it's an intern that will be grant funded so so there is no impact to to that fund as a result of the grant. The five- year forecast for wastewater for 15 16 they are again reflecting a six million dollar net income again part of that's attributable to to these this infusion of cash that's coming in from the release of the revenue bonds. Over the five-year period they're proposing a two percent increase across the board each each one of the those years as well. Well one as I looked at the question 12 the answers to question 12 some of these were proposed to be debt funded some of these projects in the water department so I just be curious as to what the schedule was for that and so when this occurred because debt right now is pretty inexpensive so we talked about that later but I just go ahead. The next fund to discuss with you is the solid waste and recycling fund. Major projects as we described up here for this fund is commercial organic recycling program the initiation of a grease and grit trap processing service some landfill mining for recyclables that they are planning to to get into and also expansion of the household household hazardous waste processing facility. Over the five-year period for CIP they're proposing 69.7 million dollars about 11.3 of that will be revenue funded. The proposed rate increases and this varies a little bit because of the the nature of their business 1.8 percent for a standard cart with recycling 1.5 for a large cart with recycling 3 percent for commercial refuse dumper dumpster and 2.5 percent for a commercial open top. They are proposing 11 new FTEs within this fund. Tony could I start sir how many FTEs did we add last year to this fund do we do we have that information? I believe it was nine. So help me understand from last year to this year what has occurred that's required this increase of FTEs because I know that they just they just keep growing and growing and I mean the city keeps growing and growing but that seems like a that seems like a lot. Well certainly I think you know five of those FTEs are directly related to the mining so you know that's that's about half of those the other are related to increased disposal operations with the hazardous waste facility with the grease trap processing as well and so those are additional staff members that are that are specifically addressing those new services or new programs within the fund. And this is the mining where we're mining the cells and pulling up trash from 20 or 30 years ago recycling. Pulling up recyclables that's correct. Yeah okay all right thank you. The five-year forecast for for this fund assumes a slight net income of two hundred thousand for 15-16. Over the five-year period you can see the the proposed rate increases for for standard and large cart residential refuge and also average commercial customer about 2.8 percent that for 2021 there is no rate increase for for commercial being proposed. This is the the electric utility fund and you know just to to remind you there we have a closed session item if there are more specific questions about this fund that we can certainly go into but but certainly the items that are here will kind of go through those. Again just like the other utilities replacement of aging infrastructure our budget priorities construction and transmission system with increased revenue to DME implementation of the the RDP RDP plant and the the new natural gas facility. The five-year CIP is a 64.7 million over that five-year period. They are proposing a base rate increase of four and a half percent that is offset or mitig ated through a reduction in the ECA rate resulting in a net increase of about point one percent for customers. This fund also is proposing nine new FTEs and again if you'd like to look additional detail on that we can surely go through that. So if we have questions about this it'd be more appropriate in a closed session is that my understanding? I believe so yes sir. This just gives you a breakdown of the five-year CIP for for the electric fund again 64.6 or 47 million kind of gives you a breakdown. You can see for 16 and 17 the majority that is related to distribution although you have 58 million that's directly related to transmission lines and substations. 92 million well if you can see over the next two years 220 million related to the to the new power plant. In the utilities each utility also has their own you know fund balance policies just like in in the general fund. They are proposing changes to the operating reserve component of that working capital remains the same at 8%. Each utility except for electric is proposing to increase their operating reserves slightly. As you can see for water from 17 to 25 percent range to range of 25 to 42 percent. Wastewater 12 to 16 percent and increasing to from 20 to 31 percent range . For solid waste 48 percent is their current operating reserve. They're proposing to increase that 6 to 10 percent as well. Tony are any of these proposed rate increases to fund this operating reserve or is it this is going to be a future discussion with council and at that point we've got to figure out how you accumulate that because that's I mean in water that's pretty big that's pretty big increase in the range. So if we're if we go back to the water five-year forecast where it shows that it's pretty static as far as expenses equate revenue to increase that I would think is there gonna have to be a are any in any of the rate proposal increases in the out years on the five-year forecast do they include the assumption that the reserve balances are going to be increased. I think the simple the quick answer is no. Okay. And so these are ranges that that are already being met that are existing and so again it's just to add additional flexibility within each individual fund to ensure in case of a some type of economic downturn case some weather pattern change that they have the flexibility there and the reserves needed to to be able to accommodate and react to those situations. Okay and I then I presume that when we have this discussion part of that presentation will be if this is approved how much it would require in a rate increase in order to accumulate those funds or what the impact would be. Yes. Okay. Thank you. Howard did you want to expand on that? Councilman Watson. So why is water with the operating reserve proposed so much higher than the other utilities? What is what is the logic if you could share that with me? Well let me ask Kenny Banks if he could if he could come up here and or yeah Tim Fisher he'll come up here and talk about that. A couple of factors affecting that one is water conservation based rates where you put a lot more emphasis on volume particularly seasonal volume. Weather variability has pretty big swings on our income. For example the last two fiscal years looking at just the income side we've lost seven million dollars of revenue due to weather. So if you look at some benchmarks of other water utilities out there we're on the low side for the target so that's the rationale behind that. We have a lot more revenue volatility in part because of our rate design in part because of our business with the weather variability. If you look at a business like Solid Waste some degree of wastewater their revenues are a lot more stable and predictable and not as influenced as much by weather. Does that address your question? So the loss of seven million was that across all four of these utilities or just water? Just water. It was due to the weather and could you expand on that please? Last two summers we got semi consistent rainfall during the months of June and July and so when you get rain you don't water your yard and conversely when you get into a drought situation and there's complete absence of rains then your revenues pick up. So you tend to have a bigger revenue swing potential within the business. You could do that with more flat type rates but then that really wouldn't put equity in there because there's a huge cost to provide that summer peak. But part of what causes that loss is that whether you're producing 12 million gallons or 18 million gallons a day your cost for operations pretty much remains the same isn't that correct? Our variable cost is not that huge. Okay. But the infrastructure cost to provide that peak is significant. Right so your basic operating cost is much more static and and it's just how much water you're selling and the weather and the rains especially even if it's a hot dry summer if the rains come at the right time people don't water this much. Yeah we have probably 80 % of our costs are fixed. 60% of our budget is debt service. Yeah. Okay the next fund that we'd like to talk with you a little bit about is our airport fund. Just wanted to make sure that that everybody knew that the airport fund is an enterprise fund. The changes that are being proposed will not change that designation from an accounting standpoint. They 'll continue to be and be treated as an enterprise fund. Just want to remind you that beginning in fiscal year 10-11 the airport operations was separated out of the general fund that previously been accounted for within the general fund and were separated out into its own enterprise fund primarily result of some of the additional revenues from from natural gas wells that were being drilled out there at the airport. For fiscal year 10-11 the gas royalties for the airport exceeded a little this exceeded 2.3 million dollars for 2015 those revenues came in at five hundred eighty thousand dollars. Just just part of it's a natural decline of royalty revenues, gas production. You on top of that infuse the fact that natural gas prices are a historic low and in addition to that we do have one gas well at the airport that has not been producing for a period of time and is actually scheduled to be to be capped. At least that's what we're hearing from the from the from the operator at this point and so so all that combined together you've seen a pretty drastic decrease in in revenue gas well revenue primarily to the airport. As a result of that what the proposed budget includes is that the general fund or that the general debt service fund that component of the tax rate will now begin to support the debt service associated with the airport. That's debt that's already been issued it's currently due just just so that you know for 16-17 where that's approximately four hundred sixty five thousand dollars that in debt service that will be coming to the general debt service fund there 's approximately for a little bit over four million dollars in outstanding principle of debt that has been issued for the airport that will now be supported or that's reimproposed to be supported through this through this mechanism. And again with this change the airport will continue to be designated an enterprise fund it certainly relieves some of the some of the downfall or some of the declines in revenues and will continue to smooth that out over the next five years. Well so I want to make sure so in essence we're not getting enough revenues from the airport to pay the expenses in the debt service so the general fund is having to come in and pay the debt for an enterprise fund. This is a concern I had three or four or five years ago when I was on the airport board an airport committee that eventually based upon the oil and gas revenues because I know we use that a lot to sort of shore up that budget so I think we need to really have some detailed conversation about that so we can understand that because this is the first sort of sign of a hole in the dyke so to speak and because these gas well royalties they're just going to keep going down to where they're almost nothing and and I know we've got a lot of development that's forecasted out for the airport that the city's planning on doing well that means that debt service will come out of the general fund most likely if we can't find other revenue sources so we really need to have a good discussion about not just what y'all are proposing but about the condition of of that enterprise fund is what I would request. To go on to the 16-17 capital improvement program total new funding including the utilities is 182 million you have in the utilities proposed to be issued in certificates of obligation 107 million there's also a revenue funded component for the utilities of a little bit over 37 million for general government 36 million I'll give you a little more details on how that breaks out between you know voter approved geo bonds and CEOs and then there's also a little bit over a million dollars in revenue funded capital that's being proposed in the general fund what's being proposed for street reconstruction is six million dollars in Geos that represents the final four million of the 2012 bond election and it includes an additional two million from the 2014 bond election if you recall we've previously spoken with you about the fact that's that we're delaying some of the issuance on the 2014 but then we catch that up in the out years again that part of it is you know just the ability to be able to spend all that money all at once so we're kind of delaying that a little bit in addition there's another 2.95 million associated with street expansion sidewalks and traffic signals public safety eight point eight point two one million that represents the the final issuance of the debt that was associated for public safety if you recall some of that involved reconstruction of fire stations some improvements to the police lobby and and also to the dispatch area for public safety and those that 's the bulk or that's the the geo funded or the excuse me the vote the voter approved geo bonds on the CEO side we are proposing five million dollars in CEOs two million dollars for public safety radio upgrades that includes fire and police and three million dollars for a new or replacement CAD system in addition to that we have eight and a half million dollars in in road matching funds associated with Bonnie Bray and Mayhill for four million dollars in CEOs for vehicle replacements I know we've had a lot of conversations about whether or not to to cash fund a portion of that but this assumes that all repl acements will be funded through through the issues of debt or CEOs a little bit over a million dollars for facility improvements these are HVC roofs flo oring improvements to to the city facilities and approximately two hundred thousand dollars for a for a new fuel truck in our fleet area just so you're aware this is not that this is not include the sale of revenue bonds for the for the RDP plan that that is scheduled to be sold or at least the first tranche of that scheduled to be sold in the current fiscal year we're actually in process of working on that pending you know additional discussions with the council about specific contracts and that wraps mine my skate my slides Chuck will pick up here unless you have any of the questions about the utilities or any of the other funds we've covered I'd sure like to see a new spreadsheet where the water is not a 5% because taking a look at all the utilities that's the one that really jumps out as a dramatic rate increase and again we had a dramatic rate increase last year as well so if we can sharpen our pencils and and come back to council with a rate increase less than 5% I would appreciate seeing that thank you all right thank you for your time I just got a couple slides left maybe before we break for some food that's in lunch and then if we want to go into closed session we can do that this is simply a summary of the total proposed additional positions it's seventy three point six positions we've broken it down by the utilities electric water wastewater solid waste and then some of the internal service funds materials management risk management street improvement that's the five for the additional crew technology services and engineering services again the internal service funds that we talked about and then in the general fund I should point out that 13.6 of those in neighborhood services are kind of those part times and few positions that go from part time to full-time related to the expansion at the water facility and only one is a full-time position that's in the building inspections at one addition we've proposed 20 new positions in public safety and the two and transportation are related to that marking the street marking and pavement marking crew and this table just kind of breaks it down by all funds you can see that about half of the 1.185 billion proposed budget is in the capital side I should point out on that capital side that's not only new funding but any existing funds that are available that haven't been spent are re-budgeted each year so that just to point that out and then you can see where the general fund and electric fund and some of the others come in across the spectrum there in terms of the next steps I do want to let the council know there's an item that will come to you that's required under the truth in taxation what we have to do in order us the tax rate for the council to vote on required notices we have proposed a half cent tax rate decrease what this notice is is kind of the maximum tax rate to be considered so I'm bringing that back on the 9th what I've proposed to do on that is simply bring back the same tax rate the six eight nine seven five simply for the notice requirement the tax rate set by the council can be anything below that so that will come back on the 9th will schedule as part of that resolution it schedules the public hearings on the tax rate which are set for August 23rd and September 13th and we'll also have a public hearing on the budget that's required by state law on September the 13th I we do have scheduled budget work sessions at all the meetings scheduled from August 9th through September 20th so we'll be available during the work session on all of those dates and we scheduled budget adoption for September 20th question and this may sound a little convoluted the first slide first couple slides you showed that there was the effective rate of point six six something which did not include the new revenue I mean the new growth the calculation tries to exclude that's correct so help me understand if I've seen if I see this correctly so hypothetically let's say we we went to the effective rate and so all this discussion we've had over two two hours about the general fund supplemental packages just sort of moves off stage we just sort of where we were last year but with the new growth which was I think calculated y'all said is 1.4 million or something like that so this 2.7 million which is proposed 2.7 and change part of that is also that 1.4 I mean I'm trying to in other words if we didn't do if we went back to the effective rate we would still have 1.4 million dollars to apply to supplemental packages based upon the the new growth that's not calculated in that effective rate is that is that's am I looking at that incorrectly you know that's just kind of looking at the general fund only on property taxes we have to look at all the general fund revenues and what's available okay in terms of that so in terms of I've got the number over there I'm hoping it's correct off top of my head but if we were to go to the effective rate of that 2.7 million in supplemental packages and it's really kind of 3.3 when you count the transfer of franchise that's correct the other 3.3 you'd have to reduce that by about 1.95 million a little under 2 million so you would have to take away that amount from that 3.3 so you're left with yes if you had the 1.5 1.6 and new expenditures now it's it's not all tax rate and tax rate because of all the different revenue sources that come into the general fund but roughly that's what it would be left with okay that's helpful thank you very much yes councilmember Gary. Regarding these the public hearings for the proposed tax rate do I understand this correctly that with the new truth and taxation law if we were to keep the effective tax rate we would not be required to have a proposed tax rate hearing correct if you do not go above the lower of the effective tax rate or the prior year tax rate you're not required to hold the public hearings you have to publish a different notice but you're not required to have the two public hearings on the tax rate you're still required under state law to have a public hearing on the budget so if I understand it we're really having these public hearings to put the public on notice that if we go above tax rate they can expect that they will be paying more on their taxes next year correct I think that's the general purpose of the the hearings from the state's purpose yes so that the public can give input on the tax rate thank you the council any other questions on at least this slide and this is this is the last slide unless I don't think I need to go to my question did we were we gonna have a thought we talked about on the request for some assistance on the nonprofit defunding I thought there was a present is there a presentation on that we don't have formal presentation miss Ross is available in the audience I've invited her to answer questions on that topic to give more information to the council about kind of what occurred and have some additional discussions on funding within the budget so she is she is here and some of her staff is here if you want them to come up and should kind of give it yeah I would like to hear that but I want to make sure it do are there any more questions for the budget presentation that Chuck just presented to us any other questions on that Wow we got that's okay Brian okay thank you Chuck and yes yeah let's take a let's take a is lunch out there y'all want to grab lunch right quick and is that okay Barbara - yeah okay I just didn't know all right let's grab a quick lunch and then we'll get them all right welcome back we're back in session meeting the Dent City Council on August the what is today the fourth 2016 we were going to hear about from a believe Barbara Ross about sort of some funding issues or with some of our nonprofits well actually I'm going to get Danny Shaw to come up here and talk to you about the emergency solutions grant that was not funded this year I will also point out that you will be tomorrow you will get an informal staff report that provides very good detail on the process that takes place at the Texas Department of Housing and Community Affairs they are the ones who determine the board is the one that determines what organizations get funding so you'll receive that tomorrow and be able to ask us any questions you have on that as well but Danny has worked very closely with the collaborative the four agencies that have requested funding from the state and so she can give you some good information on what has taken place and we'll be happy to answer any other questions about funding so I think I just start with whatever questions you might have but I've you've probably clearly seen in the articles recently the funding amount that's going to be lost in the community is around six hundred thousand dollars about four hundred seventy five thousand of that are directly related to agencies that are here in Denton another hundred and twenty five for CCA in Louisville so if you have specific questions that I can answer I'd be happy to do you know what the funding breakdown is or the loss per agency yes 125 for CCA didn't county friends the family's just over a hundred and forty three thousand giving hope is the largest recipient they get just over a hundred and eighty one thousand and then a hundred and fifty thousand to Salvation Army okay yeah and I have asked to bring this up to council you know I was gonna ask my colleagues about if there was a way we could do a one-time funding and honestly my thought was a hundred thousand dollars I mean if we want to do more that 's great because I also want to go ask and to invite other partners in the community to to maybe share in that the city of Louisville I spoke with that mayor through just voicemails and so I wanted to still have some conversations with him but I think what I'd want to emphasize that if we decide to do something for I want people to understand it's a one-time that this is a very unusual circumstance and from my understanding it impacts a tremendous amount of people in the community and also employees who are providing services at some of these agencies so my thought was if we had a one-time allocation from the fund balance of an amount that is agreed upon by council that that would provide us some opportunity and leverage maybe to go inquire with some other agencies some other municipalities or political subdivisions to see if they could they could help may not be able to make up the whole thing but anything I think would be helpful at least at this point because some people are receiving rent subsidies some people are receiving other kind of services and so those are my thoughts on this so I'll just leave knock it over we'll go council member Gregory council member Wasney and if you have any questions obviously we're going to be sure I like your idea I'm hearing you say a hundred thousand is a one-time emergency allotment I suppose that the bigger question is is there anything that we can do the city can do city staff can do to correct the situation for next year or is this are we doing a one-time emergency allotment or a permanent situation well the the application itself had scoring difficulties that are systematic they're not issues with the agencies inability to complete the application or any errors in the application but there are related to some systematic issues and how we are able to address homelessness in this community and one of the major parts of that is our ability to permanently house people who are homeless we have a lot of great temporary solutions and solutions that help people in the interim but that once we get them into some sort of emergency shelter some sort of temporary housing we just don't have enough of available housing stock that is accessible to people with these kinds of barriers that helps them get permanently housed and we have a huge population of chronically homeless that probably need permanent supportive housing which means they'll never be able to live independently so there's just not enough options for either one of those groups and there are a couple of other groups that are working on some of these solutions like the homeless leadership team that you guys have invested in have the staff member there and the behavior health leadership team they share a work group called the housing work group that's addressing some of those issues so some of that's being worked on automatically and already through this system but really through the emergency solutions grant in itself housing is a huge part of way we were not able to achieve the points that we needed to in order to be funded then to follow up do you have a notion as to when we 're going to get a recommendation from this group on some solutions or some strategies to go forward to provide permanent housing yes and a couple of other groups as well so you're we're looking at a housing pilot that's been development that we will pilot some options to look at solutions to see if they're successful and then if they are to scale those up in the future some of the other agencies that are working together and collaborative solutions are looking at how we better communicate and incentivize landlords to participate in this program which would also benefit other entities like the Denton Housing Authority getting more landlords to participate means we have more available housing to house people so those are all solutions that are being worked through but still need to be supported and what is the total shortfall $600,000 was the grant application that was denied 475,000 in the city of Denton 125,000 for the city of Lewisville one important organization in that group is Friends of the Family yes ma'am and they help and primary mission it's abused women and I just think the city needs to step up I come back to that three hundred and forty thousand for a traffic signal rework of an intersection versus organizations like the Salvation Army which is really one of our frontline organizations nonprofits that takes care of not just the homeless but helping them find jobs they have a food bank you know they are an unsung hero in this city and so if we're looking for funding these are critical critical nonprofits in helping this city and I just if we're going to fund four traffic lights this year two out of the bond the bond one out of the traffic safety fund then I'm still looking at that three hundred and forty thousand for that fourth traffic light I understand that it's important that we need to have a plan moving forward on traffic lights I'm going to put these nonprofits and their needs in front of a fourth traffic light and I would recommend that's where I'd like to see that funding go if we need to back off of that because other funding sources come forward to bridge the gap between three hundred and forty and what was it four hundred and four hundred and seventy five four hundred and seventy five so what's that about a hundred and thirty thousand if that funding but in terms of looking at our budget and how we can help bridge that shortfall for the for Denton and these nonprofits which are critical I come back to that fourth traffic signal I think that's a great idea you know especially kind of looking outside the box I just want to make sure you know staff brings that to us what that really means kind of the long term and what else it affects it seems like it's pretty black and white but that money that we were denied for and you said Lewisville right it goes to Christian Community Action 125,000 for homelessness prevention that just covers that's just one year that's correct the funding cycle is October 1 through September 30 annually so September 30th is when the current funding will end in the community okay thank you as I understand it in the scoring we lost some points because the city doesn't offer any services on its own that some of those are most of them were as of now passed on to other nonprofits is that that correct what the city is in a direct service provider we act as a fiduciary agent in fact we don't receive any of the funds from the grant either it's passed a hundred percent through the agencies unless there 's some additional funding that TDHCA will make available for admin but that's less than two thousand dollars usually so the money goes straight to the agencies to deliver those services that's correct is there they give those back for some of that yes because in the application the city is included as a direct delivery agent and how the application is scored so occasionally that can be a negative to collaboratives that have a city entity that's not or any other entity that's not providing direct services but we were able to on appeal get a couple of those points back related to that specific issue I just want to make sure we're doing all we can and it won't be an issue next time if there's anything we can start working on or looking into now to prevent that well we've we're already in place and I 've already corrected any of the issues where we could really improve scoring that we're directly directly able to do but there's still going to be that systematic issue of housing that will impact and will continue to create some difficulty in getting the highest score available and I am in support of contributing funds for this to get more specific I would I would support starting off with a hundred thousand I like the idea I would be open to the idea of going up to the three hundred and forty but if we if we offer that as our first offer then I'm not sure that some of the other agencies and some of the other organizations are going to step up and I use as a very specific example the the worksheet that we get each year from children's advocacy center where they do a lot of the support for children of violent crimes or other crimes and do a lot of the investigation in a much better atmosphere than it would happen in a for example in a police station Denton has committed for four to five years now to give our full fair share they figure how many kids from inside the city of Denton get served and therefore what what is our portion and they do that for every city in the county very few cities in the county pay their fair share Denton is one of the few that actually steps up and pays the full amount because we think it's a it's a worthwhile activity that's going on we want to support it but I don't I don't want to offer the full amount right now and relieve other other organizations of their obligation to step up also so I'd like to hold off on on that full amount that we're talking about and let let the mayor with his wonderful negotiating tactics and his charm work on some of these other organizations to see if he can get them to step up also if I could provide one bit of clarification right now that while it is a Denton County grant the services are primarily delivered only in Lewis ville and Denton none of the outlying communities in Denton County have services or in agencies that are able to deliver services at this time well I come back to the 340,000 is already in our budget it's there we saw it this morning and I'm assuming the 100,000 would be on top of that so my point is let's just let's just step up and I'm only one out of seven but that's that 's my my goal and my mission is to pull that out of a budget that we're looking at three hundred and forty thousand and let these nonprofits because we still have a shortfall of a hundred and thirty thousand you know so I mean this is sort of a collaborative between the four CCA is in Lewisville but yet friends of the family probably deals with clients both Lewisville didn't I mean correct it's it's it's more of a countywide even though some of these are nonprofits are housed in the city of Denton they still reach out the services around the county so let Lewisville step up and anyway you've you've heard what I have to say on it well and and I I mean I like the idea of an incremental approach because I mean to say that we're gonna fund four hundred thousand dollars or four hundred fifty thousand dollars on an initial if I could get 150 or 175 see if we can approach you know I mean I'd like to talk to the city of Lewisville and I'd like to talk to the county and just see if we can get some help in this and then if somehow that doesn't occur then we can we can have another conversation because this is something that if we don't correct whatever it is that we need to be doing differently within this year which I'm not so sure that we're going to be able to I mean given you know it's a it's a very large task to find permanent either supportive housing for a substantial number of people in our community so I think it goes without saying I think organizations know this that even if you know we can replen ish 75 80 percent of their funding this year that doesn't mean that it's going to come again next year and then of course we can't I mean as far as I mean this is a one for me a one-time kind of it was sort of came upon us so I like the idea of getting some initially and then so seeing what's left talking with the organizations seeing if they have some other alternatives I know there's some other people out in the community who are seeking grants from different other organizations outside of municipalities so I think it would be a great starter for a seed fund and then we can revisit that because I think when is the when does that grant usually get awarded and distributed well it 's the award actually happens in August but as a general rule we haven't received funding or able to start spending until January because of the length of time it takes TDHCA to process contracts and even allow us to start spending so then you're looking at implementation of the grant usually January through July or August at which time most of the agencies deplete service funds direct service funds and all that is remaining are salary so that's typically how the grant works sure sure there's an opportunity that if there are leftover funds so for example right now the state the state is predicting is going to get eight point eight million funds eight point four gets distributed if there's any increase or there are funds left over from a previous year there is the option that they will start looking at other agencies to who did not get funding awards to fund them and we are number two in line for that if that happens and we're also a city entity which makes us a little bit more likable to that funding source as well if there are leftover funds but we wouldn't know that until next January either at the same time in January that's correct so regardless so what I'm hearing is these these these organizations that have lost the funding through this grant for the upcoming year that hit really occurs based upon practice sometime towards November December January is that right I think the hit is now because they've probably deleted the funds from the previous grant and how they spend but usually we don't even get the money until January because of the length the time it takes that okay so yeah they're gonna feel that they're already laying off staff they're already feeling the implications of that grant so I think that would be sure they would be true that they're still feeling it now gotcha whether or not they're able to provide services wouldn't kick in maybe until later traditionally okay it's their ability to budget so you know they found out in August the money was not coming so as they're looking at their budgets now you know that's a dramatic decrease in the funding and so while it's easy for us to say well it's kind of sit around and talk about it and think about it and all of that these these people are really crunching the numbers as we speak and so you know it 's counsel's job to make this decision sooner than later so that they know they can budget with those funds because they they know for a fact those funds are not coming so I think council needs to act on this sooner than later oh I mean my we've got a quorum okay my goal is to at least out after this are we properly posted this is a budgetary item okay so can we make can we give direction on a budgetary item during this meeting okay so after this meeting today we can give some direction as to some amount is my understanding is that is that correct madam city attorney okay so Joey no I mean just direction wise I would feel a little bit more comfortable I think that's a great idea like I said before but maybe let staff kind of look at this a little bit I know that there were a couple times last year where the council had had an idea and they were able to kind of figure something out shift something around and just bring it to us and we looked at it so I'm maybe that's the only way to do it but I would like you know them to entertain that as an idea and then maybe they can put their heads together too and if this is direction that council is giving get have them look at that too as far as to cut to find figure out an amount that we're all comfortable with funding and then what would that amount be for you well I mean I would like to whatever council is thinking I mean if they're short six hundred thousand dollars and it sounds like I mean we we got to figure that out I don't know how quick we're gonna get with the other cities involved with this but I don't know I mean I would personally like to do a more than a hundred thousand dollars right that's just what I started yeah having not had a discussion with anybody I wasn't sure and then kind of addressing this as a more long-term issue I mean if this is gonna happen year after year this is a big conversation but well it is there there is a larger conversation to be had but I guess about the purpose of this conversation for me is to decide upon an initial amount that we can commit to that we can say here's an amount organizations that we're gonna commit to at this time well and that there may be more but also depending on because I understand if we try to find money through either CDBG or community development or we've got to take away from someone else to fund that so that's why I was thinking as a one-time or in the budget we 've got sidewalks in the downtown TIF well I love the whole idea are you able to match funds with us you know a concept like that if you call somebody up and we'll put in 200 if you put in 200 if you and then we can figure it out something like that so that's why I'm a little bit up in the air on the amount but I'm comfortable around that 100 thousand two hundred thousand dollar mark okay all right any other comments from staff because we got to give directions that you're okay with that okay with that I know you want more okay so that's what and if staff could begin to sort of look at that and and and city manager from a budgetary perspective in either through the one-time allocation from the general fund and then I'll begin to look at and of course you know staff can assist me in reaching out to the people I need to reach out to to make those those asks you said 100 to 200 that is it is there an item that I mean an amount that settled on this except I feel more comfortable with the 200 mark and I know there was 100 over here so I don't know what the consensus is I'm just trying to to figure that out you mentioned sidewalks if that goes to the downtown tip that's 200 available there for that yeah so I mean I'm okay yeah I'm okay go ahead somebody yes well what I was going to suggest that there's a specific amount that you want to look at doing we have the funds and fund balance that we can allocate to that if that's a hundred thousand or two hundred thousand there's been a dozen different things that have been talked about in terms of different things that we want to do with the budget of taking monies from one areas and using it for other things and I'm thinking until we resolve all those issues I really don't know exactly how that's going to play out but the the point is is there are funds available if the council wants to direct us to do that for a specific amount we do have them from one-time basis and then we can put all those other things on the table for future discussions is what I would suggest I'm gonna say I make a proposal that we take a one- time allocation at least initially from the fund balance of $200,000 and then we can move from there and have further discussion on that and then we would provide you direction on where and how those funds would be yeah because I know that those are administered by the city and I want to make sure that it's what the process is for the distribution of those that it may still be under the same under the same paradigm as if that money was coming from the regular funding source okay is that sounds good we okay with that all right fantastic thank you thank you thanks thank y'all so much for that conversation I believe that concludes our open session discussion of the budget oh we've got concluding items anybody have concluding items yes we learned about the parking situation at the police station and designating that parking lot for police came up in the conversation and I would just like to ask staff to look at that the police training center parking lot to be designated for police parking or city only to save those spaces okay all right I'm sorry I'm smiling because I was gonna mess with Peggy Hinklewolf but I won't anyway any other concluding items now we do have posted a closed session which I believe is to discuss DME's budget I would you know I just like to be able to go in a closed session just to be see if we have any questions and because I may have some questions on that all right there's my cheat sheet okay I will convene the closed session at 1225 we will consider the following items deliberations regarding certain public power utility competitive matters under Texas government code section five five one point oh eight six you