Jul 13, 2026 Public Utilities Board on 2026-07-13 9:00 AM

[2. CONSENT AGENDA] [A. PUB26-108 Consider approval of the June 22, 2026 minutes.] [B. PUB26-113 Consider recommending approval of a resolution of the City of Denton, Texas authorizing the submission of an application to the Texas Water Development Board (TWDB) for the Water Supply and Infrastructure Grant Program in an amount up to $35,000,000 for the funding of an Advanced Metering Infrastructure project; designating the City Manager as the authorized representative of the City for the purposes of furnishing such information and executing such documents as may be required in connection with such grant application and the rules of the TWDB, and to take those actions necessary in connection with such application, award and administration of the grant; designating the City’s financial advisor, engineer and bond counsel and authorizing them to aid, assist and appear on behalf of the City before TWDB; approving the TWDB application filing and authorized representative resolution document and the execution thereof by the Mayor; and providing an effective date.] [C. PUB26-107 Management Reports 1. Future Agenda Items 2. New Business Action Items] [A. PUB26-053 Receive a report, hold a discussion, and give staff direction regarding the Solid Waste, Water, Wastewater, Drainage, Electric, and Customer Service budgets.] [00:48:43] THAT'S WHY IT'S SEPARATED OUT. >> YEAH. SO SO WE CASH FUND ALL VEHICLES AND EQUIPMENT IN THE [00:48:49] ELECTRIC FUND AND SOMETHING THAT THE OTHER UTILITIES ARE ACTUALLY WORKING TOWARDS AS [00:48:52] WELL. AND THAT'S WHAT THAT 3.5 MILLION IS. >> OKAY. AND THEN INTERFUND [00:48:58] TRANSFERS. >> THOSE ARE FOR THE ADMIN COST OF SERVICES TO THE INTERNAL [00:49:02] SERVICES. >> I'M SORRY. COULD YOU SAY THAT AGAIN. [00:49:05] >> SO ADMIN TRANSFERS OR COST SERVICES FOR SAY YOUR RISK YOUR ENGINEERING CUSTOMER SERVICE, [00:49:14] THE ADMIN COST FOR THE GENERAL ADMINISTRATION. >> OKAY. GENERAL FUND TRANSFERS [00:49:19] ARE KIND OF MORE THE TRANSFERS WE'RE USED TO SEEING IN THE CITY BUDGETS. [00:49:23] >> YES, SIR. >> OKAY. I JUST SAW THOSE THREE TRANSFERS IN A ROW AND I'M LIKE, [00:49:27] WELL, HOLD ON A MINUTE. >> YES. THOSE INTERFUND TRANSFERS GO TO CENTRALIZED FUNDS THAT PROVIDE SERVICES BACK TO UTILITIES. SO RATHER THAN HAVE BUDGET PEOPLE, ACCOUNTING, PEOPLE LEGAL, YOU KNOW, FOLKS IN, IN THE UTILITY, WE TRANSFER THAT TO THE GENERAL FUND OR TO THE INTERNAL SERVICE FUNDS WHERE THOSE ACTUALLY BUDGETED. >> RIGHT? WE SEE THAT IN OTHER BUDGETS. SO IT MAKES MORE SENSE. BUT I SAW THE THREE OF THEM LINED UP THERE AND IT SEEMED LIKE IT WAS OVERKILL. THANK YOU. YES, SIR. >> I'M SORRY I HAVE TO GO BACK THEN. TO ADMINISTRATIVE COST AGAIN. WE'RE THINKING IT'S GOING TO BE 24 MILLION THIS YEAR, BUT NEXT YEAR WE'RE BUDGETING 34 MILLION. WHAT'S AN [00:50:07] ADMINISTRATIVE COSTS? >> THIS IS THE ROI AND FRANCHISE FEE OF THE REVENUE FOR ME THAT GOES TO GENERAL FUND. >> IS THAT STRICTLY JUST ROI AND FRANCHISE? YES, SIR. OKAY. SO I NOTICED IN SOLID WASTE, I THINK THEY JUST HAVE A FRANCHISE FEE LINE. THAT WOULD ALMOST BE THE EQUIVALENT HERE. THAT'S CORRECT. OKAY. >> MISTER CHAIR. SLIDE SEVEN PLEASE. I'M INTRIGUED WITH THE METERS WITH THE NEW MODELS THAT ARE COMING OUT. WILL THEY BE WILL THEY BE GIVING THE SAME. WILL THEY OPERATE THE SAME COMMERCIAL AND RESIDENTIAL, DOING ALL THE VERY. THE VERY CHANGES COMMUNICATION SUCH THAT WE'RE WANTING TO HAVE WILL THE COMMERCIAL AND THE RESIDENTIAL METERS BE ALL THE SAME AS FAR AS THE OPERATION? >> ALMOST, ALMOST. SO CURRENTLY ALL OF OUR CUSTOMERS DO HAVE AM I SO SO THE NEW GENERATION, IT'S BIDIRECTIONAL. WE CAN TALK TO THE METER. SO A LOT OF YOUR NEW INTERNET OF THINGS AND ALL THESE DEMAND SIDE PROGRAMS YOU WANT TO DO TAKE THE NEW TYPE OF METERS, BUT BASICALLY THEY WILL BE OPERATING THE SAME. WE DO HAVE REMOTE DISCONNECT FOR RESIDENTIAL. YOU REALLY DON'T HAVE THAT FOR COMMERCIAL. >> THAT'S WHAT I WAS. >> CURIOUS AT A CERTAIN AT A CERTAIN POWER CONSUMPTION. THERE'S JUST NOT THE THE SMART METER TECHNOLOGY TO PUSH A BUTTON AND DISCONNECT A CUSTOMER, ESPECIALLY IF THEY'RE THREE PHASE, THEY HAVE TS OR CTS IN THERE. WE HAVE TO ACTUALLY GO MANUALLY DISCONNECT THOSE, BUT WE CAN STILL GET A READ. BASICALLY EVERY NIGHT THESE METERS SEND IN WHAT THEIR WHAT THEIR DAILY USE IS. AND THEN GOING FORWARD, THEY'RE ACTUALLY TALKED ABOUT BEING ABLE TO SEE YOUR USAGE ON YOUR ON YOUR CELL PHONE. IF YOU LIVE OUTSIDE OF DENTON, A LOT OF THOSE APPLICATIONS ARE OUT THERE THAT WILL ALLOW US TO POSSIBLY TAKE ADVANTAGE OF THOSE IN THE FUTURE. >> I WAS CURIOUS BECAUSE SOME OF THE COMMERCIAL TENANTS THAT I HAVE WILL HAVE THEIR METERS, BUT THEN OUR HOUSE METER, I UNDERSTAND TALKING TO SOME OF THE METER OFFICE OR METER HOME THING. THOSE ARE THE. THEY'RE ADDRESSED DIFFERENTLY IN THAT THEY HAVE TO COME OUT THERE AND ACTUALLY DO WORK ON THOSE BECAUSE THEY'RE NOT THEY'RE NOT SO ELECTRONIC, ACCEPTABLE. >> CORRECT. AND DON'T HOLD ME TO IT. THERE'S ONLY ABOUT A THOUSAND OF THOSE ON OUR SYSTEM OUT OF OUR 70. >> BUT MY POINT IS, WILL THAT BE ALTERED WITH THE NEW METERS COMING IN, OR WILL THAT. >> BE SOMETHING WE TAKE A LOOK AT? YEAH, I'D HAVE TO GET THAT ANSWER. SO HOPEFULLY WE CAN. BUT WHEN WE WHEN WE INSTALL THESE METERS TEN YEARS AGO, THAT TECHNOLOGY WASN'T. >> THERE JUST FOR MY OWN EDIFICATION. DO WHAT YOU NEED TO DO. >> YES, SIR. THANK YOU. >> ANY OTHER QUESTIONS ON ELECTRICAL AT THIS TIME? SO I JUST HAVE ONE CONCERN. IF YOU GO BACK TO PAGE SIX. WE BALANCE OUR FUNDS KIND OF BY CATEGORY, YOU KNOW, SO THAT THEY, THEY EACH CATEGORY HAS ITS OWN COST, COVERS ITS OWN COST. AND I WORRY HERE, LIKE, YOU KNOW, THERE'S A SIMPLE, A SIMPLE SLOGAN, GROWTH, PAY FOR GROWTH. SO WE HAVE GROWTH KIND OF SEPARATE FROM OUR BASE RATE. BUT IT'S, BUT IN ORDER TO HAVE THOSE FUND BALANCES, THE BASE RATE IS GOING TO HAVE TO GO UP TO KIND OF COVER THE FUND, THE FUND RESERVE RESERVE FUND. SO I, I DON'T KNOW IF IT WOULD BE I WANT GROWTH TO PAY FOR GROWTH. I DON'T KNOW IF THAT'S IN THE ECA THAT INSTEAD OF TARGETING A $20 MILLION BALANCE, WE TARGET A 38% OF ANNUAL LOAD BALANCE OR SOMETHING LIKE THAT. YOU KNOW, IN GENERAL, WE'VE, WE'VE HAD THIS ATTITUDE ON ON LARGE LOADS MUST PAY FULL FREIGHT, CARRY THEIR OWN COSTS, NOT ADD ADDITIONAL COSTS. AND SO I WORRY THAT JUST BY HAVING THIS RULE AND ALL THAT GOES INTO THE BASE RATE, YOU KNOW, AND I KNOW WE'RE GOING TO WORK VERY HARD TO KEEP IT UNDER 7%, BUT THERE'S ALMOST GUARANTEED RATE INCREASES JUST TO COVER THAT RESERVE FUND. NEED. THAT'S ALL TO ALL BECAUSE OF THAT ECA KIND OF GROWTH. DOES THAT MAKE SENSE? NO. >> YEAH. SO SO ONE OF THE TWO PROJECTS THAT WE'RE WORKING ON IS THE RATE STUDY. YOU KNOW, ONE OF THE ITEMS THAT WE'RE LOOKING AT IS POTENTIAL ADOPTION OF A OF A TARIFF RATE FOR LARGE LOADS. BUT, BUT CERTAINLY, YOU KNOW, A, YOU KNOW, APPLYING THE APPROPRIATE COST TO THAT, YOU KNOW, AS KIND OF PART OF THAT PROCESS. THE OTHER ONE IS, YOU KNOW, WE ARE WORKING WITH THE FINANCE DEPARTMENT ON LOOKING AT ALL OF THE FINANCIAL POLICIES TO INCLUDE FUND BALANCES AND HOW THOSE ARE CALCULATED. AND, YOU KNOW, MATT'S HERE AND, YOU KNOW, SO WE'RE WORKING WITH HIM AND HIS TEAM ON THAT. AND WE'LL CERTAINLY KIND OF TAKE THIS INFORMATION AND AND SEE HOW WE [00:55:04] CAN BEST INCORPORATE THAT INTO THAT CONVERSATION THAT WILL BE FORTHCOMING TO THE PUB AND TO THE COUNCIL AS WELL. >> THANK YOU. SO I GUESS WHAT'S THE NEXT? >> THERE IS ONE QUICK ITEM THAT I DO WANT TO JUST KIND OF HIGHLIGHT FOR YOU IS A MINOR ITEM. IF YOU GO TO THE NEXT SLIDE, I JUST WANT TO POINT OUT THAT VERY LAST ITEM BUILDING CONSTRUCTION, $2 MILLION. IF YOU REMEMBER, WE HAD BROUGHT BACK, WE BROUGHT TO THE PUB INTO THE COUNCIL THE PURCHASE OF SOME PROPERTY TO EXPAND OR RENOVATE THE CAMPUS. WE HAD TAKEN ALL THAT OUT, $75 MILLION WE TOOK OUT. WE DID ACQUIRE THE PROPERTY. THIS 2 MILLION WOULD BE PURELY TO FENCE THAT ENTIRE PROPERTY OFF FOR SECURITY REASONS, WHICH WAS REALLY A MAJOR COMPONENT FOR THE ACQUISITION OF THAT PROPERTY. SO I JUST WANT TO POINT THAT OUT. AGAIN. THAT'S AN ESTIMATE. AND WE HOPE THAT WE DON'T NEED THE FULL 2 MILLION. BUT I JUST WANT TO KIND OF HIGHLIGHT THAT FOR YOU. >> WHILE WE'RE ON PAGE SEVEN, I HAD A QUESTION ABOUT THE COST PARTICIPATION AND WHERE THAT'S COMING FROM. >> YEAH. THESE ARE THIS IS FUNDING FROM DEVELOPERS AND WITH AGREEMENTS THAT WE HAVE WITH THEM. >> SO DO WE HAVE A PRETTY GOOD HANDLE ON WHERE THAT IS. THAT NUMBER SEEMS IT'S FLAT AND THEN IT DROPS. THEN IT GOES WAY UP. SO IS, IS THAT BASED ON SOME PROJECTIONS WE HAVE OF WHERE THINGS ARE GOING WITH DEVELOPMENTS. >> YES, SIR. IT IS. AND IT ALSO INCLUDES TXDOT PROJECTS THAT WE KNOW ARE ON THE HORIZON. SO FOR ALL OF OUR RELOCATES, WE DO ALONG LIKE I-35, THOSE ARE REIMBURSABLE. SO THOSE ARE THE BIG SWINGS YOU'RE SEEING FOR THOSE PROJECTS THAT WE KNOW ARE, THAT WE THINK ARE ON THE HORIZON. IT IS THE STATE OF TEXAS. SO IT'S VERY, VERY DYNAMIC HOW THOSE PROJECTS MOVE AROUND. >> OKAY, SO THIS ISN'T FOR COST PARTICIPATION FROM LIKE DEVELOPMENTS LIKE HUNTER OR CALL RANCH. THIS IS FROM. >> IT'S BOTH. IT'S BOTH. >> YES. OKAY. SO IT INCLUDES THAT AND THE TEX DOT REIMBURSABLE PROJECTS. >> YES, SIR. >> IT DOES. OKAY. THANK YOU. >> CUSTOMER SERVICE. >> JUST ONE REAL SIMPLE ONE ON THE CREDIT CARD FEE. IF I REMEMBER, WE CAN'T CHARGE THAT ON DEBIT CARDS, BUT WE CAN ON CREDIT CARDS. AND THAT'S WHAT WE FACTORED IN. CORRECT. >> CHRIS TO FOSTER CUSTOMER SERVICE MANAGER, THE FEE WILL APPLY TO BOTH CREDIT AND DEBIT CARDS. OKAY. >> AND THAT'S ALL RIGHT. UNDER TEXAS LAW. >> THAT IS OKAY. UNDER THE PLAN THAT WE CHOSE, THAT IS ACCEPTABLE. >> OKAY. THANK YOU. >> REMIND ME AGAIN WHY WE HAVE NO STREET COST OF SERVICE FOR STREETS ANYMORE. YEAH. >> YES. SO THE, THE SERVICES FOR STREETS THAT THEY WERE PAYING FOR WAS FOR THE 311 SERVICES. AND WE'VE CHANGED THE ALLOCATION OF THAT TO, TO, YOU KNOW, BETTER SERVE OUR FUNDS. AND SO STREETS IS NO LONGER PAYING IN OR CUSTOMER SERVICE IS NO LONGER SERVICING SERVICING STREETS THROUGH 311. >> I MAY WANT GUIDANCE FROM LEGAL ON THIS QUESTION, SINCE THIS IS A WORK SESSION AND WE'RE GOING TO BE TALKING ABOUT BUDGETS, BUT UNDER THE THE CUSTOMER SERVICE, IS IT PERMISSIBLE TO ASK OPERATIONAL QUESTIONS? WOULD THAT FALL UNDER THIS BUDGET WORKSHOP? WELL. >> IT COULD, DEPENDING ON WHAT THE OPERATIONAL QUESTION IS. THE QUESTION. AND THEN YOU SHOOT THE FLAG. >> AND SUCH. OKAY. I'D LIKE TO TALK ABOUT WE'VE GONE PAPERLESS ON THE CUSTOMER SERVICE. I UNDERSTAND. AND SO IF FROM MY UNDERSTANDING, IF SOMEONE WAS GOING TO GET, LET'S SAY TEMPORARY OR TO SHOW, THAT'S ANOTHER TERM WE'RE USING FOR TEMPORARY POWER SO THAT SOMEONE CAN GET A PARTICULAR RENTAL SPACE, EITHER READY FOR A TENANT WHO THEN WOULD COME THROUGH THE AND GET THEIR CERTIFICATE OF OCCUPANCY AND SUCH. THE PROCEDURE WOULD BE WE GO OVER TO THE BUILDING INSPECTION SIDE SO WE CAN GET A AN INSPECTOR COMING TO REVIEW THE SPACE. ORIGINALLY IT GETS A PERMIT NUMBER. THEN THAT PERMIT NUMBER COMES OVER TO CUSTOMER SERVICE AND CUSTOMER OUT A PAPE. MY QUESTION IS ON THE PAPERLESS FORM. IT TALKS ABOUT RESIDENTIAL. IT TALKS ABOUT COMMERCIAL. IT HAS ONE SPOT FOR TO SHOW. BUT WHEN YOU CLICK IT, IT STILL ASKS THE VERY SAME QUESTION FOR THE COMMERCIAL. BUT THE DIFFERENCE IS THE THE TO SHOW IS YOU'RE JUST TRYING TO GET POWER ON SO THAT YOU CAN GET OTHER THINGS DONE. NOW THERE'S A THREE DAY REVIEW. ONCE YOU SUBMIT THAT, BUT I'VE [01:00:06] HAD SOME INDIVIDUALS CONTACT ME AND SAYS, FORGET ABOUT THE THREE DAYS, THREE DAYS. AND THEN THEY FIND OUT THAT POSSIBLY WHAT THEY SUBMITTED WAS NOT ACCEPTABLE TO BEGIN WITH. AND THERE WASN'T AN IMMEDIATE RESPONSE BACK. I'M JUST LOOKING AT PAPERLESS FORM. IF WE GO WITH THE COMPUTER, IS THERE A WAY THAT THAT NEEDS TO BE DISCUSSED LATER TO TRY TO WORK OUT THE BUGS THAT I THINK THAT OCCUR WITH A TO SHOW VERSUS JUST A TRADITIONAL GET A COMMERCIAL GOING. NOW, HAVE I STEPPED OUT OF BOUNDS? >> I THINK YOU COULD PROBABLY JUST INDIVIDUALLY TALK TO KRISTA AFTER AND SEE, IS THAT ACCEPTABLE? YEAH, BECAUSE I DIDN'T, I DIDN'T I MEAN, THIS IS NOT MY FORTE. SO BUT I DIDN'T HEAR THE BUDGETARY PART IN THERE, SO WELL, MAYBE JUST COULD TALK. >> COULD THAT HAVE BEEN MORE EXPENSIVE HAD WE ADDED ANOTHER SHEET FOR THE PAPERLESS FORM? >> I DON'T KNOW. SO WE'RE. >> WE'RE HAPPY TO GET WITH YOU AFTERWARDS AND KIND OF TALK THROUGH THAT. >> YEAH. >> THANK YOU SO MUCH. >> APPRECIATE IT. SURE. >> ANY OTHER QUESTIONS ON CUSTOMER SERVICE AT THIS TIME? >> I THINK IT WORKS GREAT. I'M JUST JUST, YOU KNOW. >> MOVING ON TO WATER. >> OKAY. SO WHERE WHAT WE JUST APPROVED FOR THIS GRANT WOULD THAT WOULD REDUCE OUR RATE INCREASE IF WE GET THE GRANT BECAUSE WE'RE NOT GOING TO ISSUE THE BONDS. IS THAT CORRECT. BUT THIS IS A FLUID DOCUMENT. >> SO THAT IS CORRECT. AND THAT'S NOT CURRENTLY IN HERE. OKAY. IT'S BEEN APPROVED YET BUT. YES MA'AM. >> OKAY. ALL RIGHT. THAT'S MY ONLY QUESTION. >> USE OF IMPACT FEES GO WILD. CAN WE EXPLAIN WHY THEY JUMPED SO DRAMATICALLY? >> THIS IS JUST BASED ON WHERE IT HAS TO BE USED WITH WHERE THE DEVELOPMENT OCCURS. AND IT'S ALSO JUST DEPENDING UPON WHAT WE ACTUALLY RECEIVE. AND SO WE'RE USING THE IMPACT FEES AS APPLICABLE AS WE KNOW, AS WELL AS WHAT WE CAN TO OFFSET THE THE DEBT SERVICE FOR THE EXPANSION OF THE PLANT PROJECTS. >> YEAH. SO FROM 28 TO 29, IT'S THREE X. >> YES, SIR. AS, AS THOSE AS THE DEBT SERVICE FOR THOSE COME ON BOARD, WE WOULD LIKE TO ALLOCATE AS MUCH OF THE IMPACT FEES TOWARDS THAT SPECIFIC DEBT SERVICE AS POSSIBLE. AND THEN STARTING IN 32 IS WHEN THE WIFIA PAYMENTS BEGIN. AND SO THERE'S, IT'S, IT'S STRATEGIC ON PURPOSE TO TRY TO HOLD THE USE OF THOSE IMPACT FEES UNTIL LATER TO OFFSET THAT DEBT SERVICE. SO, SO IT'S RAMPING UP TO, TO BASICALLY HAVE IT AVAILABLE IN THE OUTER YEARS USING WHAT WE CAN NOW TO TRY TO HOLD RATES AS LOW AS WE CAN. BUT FOR MORE SPECIFIC USE, WHEN THE WIFIA DEBT SERVICE PAYMENTS BEGIN. >> THANK YOU. >> WHAT IS OUR TARGET. >> DEBT SERVICE COVERAGE RATIO? >> IT'S ONE AND A QUARTER. SO 1.25. >> OKAY. >> SO WHEN WE PUT TOGETHER A BUDGET LIKE THIS, WE DO SHOW WHETHER OR NOT WE'RE MEETING OUR FUND BALANCE TARGETS, BUT WE DON'T HAVE A SEPARATE LINE ITEM THAT SAYS, ARE WE MEETING YES. NO DSER TARGETS. IS THAT I THINK, SOMETHING WE SHOULD BE POINTING OUT? I MEAN, IF WE'RE TRYING TO GET 125% DEBT COVERAGE RATIO AND WE'RE ALMOST NEVER DOING IT, THAT JUST DOESN'T TELL ME WHETHER OR NOT WE'RE ACHIEVING WHAT WE WANT TO ACHIEVE. IT TURNS OUT WE'RE SHORT IN MOST YEARS UNTIL 29. >> YEAH. GOOD QUESTION. SO ONE AND A QUARTER IS IS CERTAINLY THE TARGET. NOW THIS IS MOSTLY FOR THE ISSUANCE OF REVENUE BONDS. AND WE WE ISSUE THIS AS A UTILITY SYSTEM AS A WHOLE. SO IT WOULD BE FOR WATER WASTEWATER AND DME. EXCUSE ME. AND ACROSS THE UTILITY SYSTEM WE DO AVERAGE ONE AND A QUARTER OR MORE. SO WE SHOW IT INDIVIDUALLY BY FUND. SO YOU CAN SEE IT. BUT YES, YOU ARE CORRECT. WE, WE CERTAINLY COULD, YOU KNOW, SHOW US MEETING OR NOT MEETING THAT TARGET. >> YEAH. NO, DON'T MOST DEBT COVENANTS REQUIRE A ONE ONE OR A ONE TWO, FIVE? LIKE ARE WE TRIGGERING A VIOLATION BY NOT BEING CLOSE? >> NO. SO WE WE ARE IN COMPLIANCE ACROSS THE UTILITY SYSTEM. WE JUST SHOW THEM AS BUY A FUND ON INDIVIDUALLY HERE. OKAY. >> YEAH. JUST KEEP IN MIND THIS ONLY APPLIES REALLY TO FROM A BOND STANDPOINT TO REVENUE BONDS. THERE'S ONLY THREE SERIES OF OUTSTANDING REVENUE BONDS CURRENTLY. AND SO WE VERY WELL ARE WELL ABOVE MEETING THOSE REQUIREMENTS. BUT BUT BUT BUT AS A CITY POLICY, THE 1.25 [01:05:01] IS A TARGET FOR EACH ONE OF THESE FUNDS. AND SO AS LONG AS WE'RE GETTING THERE, GENERALLY, AS LONG AS WE'RE GETTING THERE BY WITHIN THE FIVE YEAR WINDOW, WE'RE GENERALLY IN COMPLIANCE WITH OUR OWN INTERNAL POLICY. >> OKAY. >> I HAVE A QUESTION. THE INTERFUND TRANSFER IS APPEARS IN TWO PLACES THE BEGINNING FUND BALANCE AND TOTAL REVENUE. JUST CURIOUS ABOUT THAT. >> YES, SIR. SO THERE'S THERE'S TRANSFERS THAT THE FUND RECEIVES AS WELL AS IN REVENUE FROM MOUS WITH OTHER FUNDS OR, YOU KNOW, DIFFERENT REVENUE FROM OTHER FUNDS AS WELL. FORGIVE ME, I KNOW SPECIFICALLY KNOW WHAT THOSE ARE. >> WELL, SINCE THE NUMBERS ARE DIFFERENT, THEY'RE OBVIOUSLY DIFFERENT TRANSFERS. IS THERE A WAY FOR THOSE INTERFUND TRANSFERS TO BE A LITTLE BETTER IDENTIFIED? >> YEAH, WE CAN CERTAINLY GET YOU WHAT THE DETAILS ARE ON THE REVENUE SIDE, BUT THE EXPENDITURE SIDE IS IS THE SAME AS WE DISCUSSED EARLIER. IT'S THE THE COST OF SERVICE FOR THE INTERNAL SERVICE, TECH SERVICES AND THINGS. THEY AREN'T THEY AREN'T OFFSET OR RELATED NECESSARILY. IT'S JUST IT'S IT'S CLASSIFIED HERE AS INTERNAL INTERFUND TRANSFERS BECAUSE IT'S COMING FROM ANOTHER FUND WITHIN THE CITY REVENUE INTO THE WATER FUND. >> SO WE HAVE REVENUE TRANSFERS AND WE HAVE EXPENDITURE TRANSFERS. >> YES, SIR. >> ALL RIGHT. IT'S STILL NOT CLEAR WHERE THEY'RE COMING FROM AND GOING, BUT I THINK THAT WOULD BE HELPFUL FOR FUTURE REFERENCE. >> YES, SIR. JUST AS FAR AS CONSIDERING THAT THE WATER FUND ITSELF IS AN ENTERPRISE SYSTEM, YOU KNOW, THERE ARE REVENUES THAT THEY RECEIVE. WE COULD PROBABLY DO BETTER WITH THE THE DETAIL OF THE WORD WE'RE USING FOR THE DESCRIPTION HERE, WHICH WOULD BE HELPFUL. AND WE CAN CERTAINLY DO THAT FOR YOU. >> JUST RECOMMENDING THAT FOR AS YOU PROCEED THROUGH THE PROCESS TO MAKE IT CLEAR TO US AND USERS. THANK YOU. >> HI. GOOD MORNING. MATT HAMILTON CHIEF FINANCIAL OFFICER I DID JUST WANT TO NOTE ON THIS THE THE REVENUE THAT'S COMING INTO WATER, THE WASTEWATER FUND DOES NOT HAVE AN ADMINISTRATIVE UNIT, AN ADMIN DIVISION. ALL THE ADMIN STAFF ARE BUDGETED IN WATER, ALTHOUGH THEY PERFORM WATER AND WASTEWATER, YOU KNOW, TASKS. SO THE WASTEWATER FUND IS ACTUALLY MAKING A TRANSFER INTO THE WATER FUND, WHICH IS THE REVENUE THAT YOU SEE THERE AS IN THE WATER FUND. SO THANK YOU. >> THANK YOU. I THINK IT WOULD BE NICE TO IDENTIFY THAT MAYBE IN A FOOTNOTE OR SOMETHING. THANK YOU. >> IS THAT THE MAJOR SOURCE FROM THE WASTEWATER FROM OTHERS. IS THAT WHAT YOU'RE SAYING? >> YES. THAT'S THAT'S THE MAJOR SOURCE OF REVENUE THAT YOU'RE SEEING HERE IN THE INTER FUND TRANSFERS FOR FOR REVENUE IN THE WATER FUND IS FROM THE WASTEWATER FUND PAYING FOR THOSE ADMINISTRATIVE SERVICES. THE WATER IS PROVIDING. THEN ON THE EXPENDITURE SIDE, THOSE INTERFUND TRANSFERS OUT ARE FOR CENTRAL SERVICES THAT WERE DESCRIBED EARLIER. LEGAL FINANCE, YOU KNOW, THE CITY MANAGER'S OFFICE, ALL THE CENTRAL SERVICES THAT ARE PROVIDED TO TO ALL THE FUNDS. >> TO JUST OPERATIONAL EXPENSE IN. >> YES. YEP. >> THANK YOU. >> ANY FURTHER QUESTIONS ON THE WATER BUDGET PRO FORMA AS WE MOVE ON TO THE CIP QUESTIONS ON THE WATER CIP? SO MYSELF, QUESTIONS ON THE WATER CIP. AND SO YOU DID MENTION SO OBVIOUSLY A LOT OF MONEY IN PLANT IMPROVEMENTS AS WE EXPAND WATER TREATMENT PLANT CAPABILITIES AT RAY ROBERTS AND THEN THE WIFIA DEBT BASICALLY COMES DUE TOWARD THE END OF THAT. YOU MENTIONED LIKE WE'RE WITH WE'RE HOLDING BACK OUR COLLECTED. >> THE IMPACT FEES. >> IMPACT FEES. THANK YOU. AND WE'RE GOING TO USE THOSE FOR THAT DEBT SERVICE WHENEVER IT COMES DUE. >> YES, SIR. 2032 IS THE EXPECTATION. >> OKAY. I THINK WE CAN I DON'T SEE ANY FURTHER QUESTIONS ON. SORRY I SPOKE. >> TOO SOON. OKAY. YOU BROUGHT UP WIFIA WIFIA. COULD I GET A DEFINITION OF WHAT THAT IS OR WHAT FUNDING SOURCE THAT IS? >> YEAH. >> WATER INFRASTRUCTURE, SOMETHING SOMETHING LIKE THAT. >> SORRY. >> STATE WATER FUNDING. >> IT'S FEDERAL FUNDS. YES. IT'S A PROGRAM. >> IT'S THE IT'S A IT'S A LOW COST LOAN. >> YEAH, YEAH, YEAH. YOU HAD TO DO IT, DIDN'T YOU? >> SO. STEPHEN GAI GENERAL MANAGER, WATER UTILITIES AND STREET OPERATIONS. CAN YOU [01:10:05] RESTATE THE QUESTION, PLEASE. >> I'M JUST CURIOUS WHAT WIFIA IS JUST AS A FEDERAL FUNDING. SO IS THAT AN AGENCY? A DEPARTMENT? >> IT'S IT'S SPONSORED THROUGH US. EPA THE WATER INNOVATION, WATER FUNDING AND INNOVATION ACT IS WHAT IT IS. AND WHAT IT DOES IS IT ALLOWS US TO UTILIZE THE FEDERAL LOAN FROM THE FEDERAL GOVERNMENT TO COVER MAJOR PROJECTS. AND SO IT'S TARGETED SPECIFICALLY AT PROJECTS 20 MILLION AND ABOVE, RIGHT? SO THAT'S THE LOWEST AMOUNT THAT YOU CAN APPLY FOR THROUGH WITH YOU. AND THEN IT HAS SOME OTHER FEATURES IN IT, BUT IT'S A FEDERAL PROGRAM. >> OKAY. SO IT'S A FEDERAL FUNDING PROGRAM. AND WIFIA DOES STAND FOR SOMETHING. IS THAT ACT? >> YES. WATER INNOVATION FUND, WATER, WATER FUNDING AND INNOVATION INFRASTRUCTURE, WATER. INFRASTRUCTURE FUNDING AND INNOVATION ACT. THAT'S WHAT IT IS. I FORGOT THE INFRASTRUCTURE PART. >> YEAH. OKAY. THANK YOU. >> YOU'RE WELCOME. >> QUESTIONS ON WASTEWATER. >> YES. >> LOOKS LIKE THE MAJOR DRIVER IN WASTEWATER IS THE DEBT SERVICE THAT'S GOING TO BE COMING ONLINE. AND I KNOW THAT'S BECAUSE OF ALL THE GROWTH THAT'S GOING ON THAT WE HAVE TO BUILD THESE PLANTS AND STUFF. BUT ARE WE USING ENOUGH OF THE IMPACT FEES OR ARE OUR RATEPAYERS GOING TO END UP PAYING A BIT OF A BURDEN ON THIS? >> I MEAN, THAT'S CERTAINLY A DECISION THAT THE BOARD HERE AND THE COUNCIL CAN MAKE. AGAIN, IT'S SIMILAR TO AS WE TALKED ABOUT FOR WATER. YOU KNOW, WASTEWATER IS ALSO GOING TO BE RECEIVING WIFIA FUNDING AND OTHER FEDERAL FUNDING THROUGH LIKE CLEAN WATER AND THINGS WHERE WE EXPECT THOSE MAJOR DEBT SERVICE PAYMENTS TO OCCUR IN THE LATER YEARS. AND SO IN TRYING TO HAVE A REVENUE SOURCE TO PAY THAT DEBT SERVICE AS IT GETS REALLY LARGE IN THE OUTER YEARS, TO OFFSET THAT WITH IMPACT FEES THAT ARE AVAILABLE AT THE TIME. SO CERTAINLY A DECISION THIS BOARD AND AS WELL AS COUNCIL CAN GIVE US RECOMMENDATIONS ON. >> I KNOW WE HAD 11%, 11%. NOW WE HAVE NINE, EIGHT, SEVEN. I MEAN, PRETTY SOON PEOPLE AREN'T GOING TO BE ABLE TO AFFORD TO FLUSH THEIR TOILETS. JUST JUST BOTHERS ME. SORRY. >> ANY FURTHER ANY OTHER QUESTIONS ON THE WASTEWATER BUDGET? >> WE'D JUST LIKE TO TAG ALONG WITH THAT QUESTION, CONCERN ABOUT THE INCREASES THERE IN THE DEBT SERVICE. SO WE DO HAVE A LOT OF PROJECT WORK COMING UP, BUT IT LOOKS LIKE WE'RE GOING TO BE PROVIDING SOME PRETTY SERIOUS YEAR OVER YEAR INCREASES TO CHARGES AND TO OUR CUSTOMERS IN ORDER TO ACCOMMODATE THAT. SO I'D JUST LIKE TO POINT OUT THAT MIGHT BE A PAIN POINT FOR THE COUNCIL AWARE OF. >> THAT, AND I'M NOT SURE THERE'S AN ANSWER. I THINK I MEAN, IT PROBABLY IS WHAT IT IS. IT'S JUST THAT'S SIGNIFICANT. YEAH. >> IT'S A LOT OF INCREASES. I'D BE CONCERNED IF I WERE ON COUNCIL. THANK YOU. >> CAN WE MOVE TO THE I BELIEVE WE MOVE TO THE CIP SLIDE. AND HERE WE SEE WATER HAD A $750 MILLION CAPITAL BUDGET. AND WASTEWATER IS ABOUT, YOU KNOW, A LITTLE OVER 1.1 BILLION. AND SO WE'RE LOOKING AT, YOU KNOW, WITH ALL OF THE CAPITAL BUDGETS, LIKE $2.4 BILLION IN CAPITAL EXPENDITURES IN THE NEXT FIVE YEARS. SO I THINK THE IMPACT FEE WERE LIKE THAT. THAT CHIP IS KIND OF SAILED. WE'LL HAVE TO WAIT FOR THIS FOR THIS ROUND OF CAPITAL. WE CAN'T SUDDENLY INCREASE OUR IMPACT FEES TO CATCH ALL THIS UP. YOU KNOW, THESE ARE MAJOR STEP IMPROVEMENTS THAT ARE NEEDED EVERY 20 YEARS OR SOMETHING. SO BUT I DO THINK WE NEED TO KEEP IN MIND OUR NEXT IMPACT FEE DISCUSSION THAT WHEN WE HIT THESE CERTAIN POPULATION MILESTONES AND WE NEED TO BUILD ANOTHER BILLION DOLLAR PLANT OR ANOTHER $500 MILLION EXPANSION, THAT IF THERE IF THAT MONEY HASN'T BEEN COLLECTED AND IMPACT FEES, THEN EVERYBODY GETS FIVE YEARS OF ESCALATING RATES. >> I FALL BACK WITH THOMAS'S CONCERN. BANG, THE NEXT YEAR, GUESS WHAT? WE'RE ALL MOVING TO CRUM. AND WE NEED. WHAT'S THE ANSWER WITHOUT. I KNOW WE'RE SET FOR FIVE YEARS, BUT I MEAN, WE. THANK YOU. >> ARE THERE ANY OTHER QUESTIONS ON ON THE WASTEWATER CIP? MOVING ON TO DRAINAGE. OH, [01:15:06] SORRY. >> THERE'S A NOTE ON PAGE 16, SLIDE 16 ABOUT INCREASED TRANSFER TO ENGINEERING FOR CAPITAL PROJECT MANAGEMENT. SPEAKING OF BONDS AND BOND REVENUES, AREN'T THE BONDS PAYING FOR ALL OF THE DESIGN AND MANAGEMENT OF THESE CAPITAL PROJECTS? >> THERE ARE PROPOSITIONS FOR THAT. YES, SIR. FOR THE AMOUNT THAT ENGINEERING TAKES ON FOR THEIR COSTS THERE, THERE WERE SOME ISSUES WITH THEM NETTING OUT IN THEIR FUND. AND SO AND WORKING WITH THE DEPARTMENT AND TRYING TO RIGHTSIZE ALL OF THAT. WE VISITED THE ALLOCATION MODEL, AND THIS IS IN TERMS OF THAT INTERNAL TRANSFER LINE THAT YOU'RE TALKING ABOUT, WHERE WE NEED TO INCREASE WHAT THE DRAINAGE FUND WAS PAYING TO ENGINEERING TO MAKE THEM WHOLE FOR THE SERVICES THAT ENGINEERING IS COVERING WITH THE DRAINAGE PROJECTS. SO THERE ARE IT'S NOT ENTIRELY DEBT FUNDED. THERE IS THERE ARE SOME PROJECTS THAT. THAT RECEIVE FUNDING FROM DRAINAGE TO PAY FOR. >> OKAY. SO THE BONDING AND THE PROJECTS THAT ARE BEING OVERSEEN BY ENGINEERING, THEIR COSTS ARE NOT COVERED IN THE BONDING THAT HAS TO COME OUT OF. >> YES, SIR. >> THE OPERATIONS OF THE DEPARTMENT. >> YES, SIR. >> INTERESTING. >> AND SO THIS IS TO TRUE THAT UP. AND SO YOU'LL SEE A A LARGE EXPENSE GOING FROM FOR THE INTERNAL TRANSFER FROM THE 26 BUDGET, 1.1 MILLION. AND THEN YOU'LL SEE IN THE 27 BUDGET, 3.2 MILLION. AND THAT'S A LOT OF WHAT THE 12% RATE INCREASE IS COVERING. AND AGAIN, THESE ARE PRELIMINARY AND WE CAN TAKE RECOMMENDATIONS. >> CAN WE CAN WE GO BACK TO THE PERFORMANCE. THANK YOU. THERE'S A SIGNIFICANT VARIANCE BETWEEN WHAT WE RECEIVED AND WHAT'S ON THE SCREEN. IT'S SIGNIFICANT. 13.5 YEAR OVER YEAR VERSUS 12 AND ONE YEAR. WHY WHY IS THAT. WHY IS THAT? I UNDERSTAND IT'S A WORKING DOCUMENT, BUT THAT'S ONE OF THEM DOUBLES THE RATE IN FIVE YEARS THAT OUR RATEPAYERS ARE PAYING NOW. AND THIS ONE IS JUST A 12%. >> YES. SO THERE'S A COST OF SERVICE STUDY THAT WE'RE CURRENTLY WORKING ON. IT'S NOT READY YET. IT'S STILL BEING FINALIZED. AND SO IN IN THE DECISION AS THIS PRESENTATION WAS BEING PUT TOGETHER FOR YOU, THE BOARD HERE, IT WAS A DECISION ON WHETHER WE SHOULD SHOW 12% AND BRING IT TO THE BOARD AND LET YOU GUYS SEE THAT AND MAKE RECOMMENDATIONS, OR TO GO WITH 13.5% THROUGH THE OUT YEARS, JUST WITHIN THE TIMING OF WHAT WAS PUT IN THE PRESENTATION AND WHAT WE'RE SHOWING HERE, THE DECISION WAS TO GIVE YOU 12%, AND THAT'S WHAT WE'RE PRESENTING THIS THIS MORNING. >> SO HOW CERTAIN ARE WE WITHIN THE ERROR BARS THAT IN 27, 28, 29, WE'RE NOT GOING TO HAVE A 12 OR 13.5% RATE INCREASE? >> IT'S A LOT OF IT REALLY DEPENDS ON, LIKE I SAID, REALLY THE DECISION FOR THE TRANSFER TO ENGINEERING AND WHETHER THAT IS PART OF THEIR BUDGET OR NOT, IF THAT'S SOMETHING THAT THIS BOARD DECIDES TO RECOMMEND AND COUNCIL DECIDES TO APPROVE. WITHOUT THAT, WE MAY NOT NEED AN INCREASE, BUT IT JUST DEPENDS ON WHAT COMES FROM THE COST OF SERVICE STUDY. WHEN THAT'S READY TO BE PRESENTED. OKAY. >> AND PERSONNEL SERVICES DROPS. >> WHY THIS IS DUE TO PRIOR SLIDE. YOU SAW THAT THE THE WATERSHED SERVICES WERE MOVED OUT OF THIS FUND, AND THEY NOW ARE IN AN ENVIRONMENTAL SERVICES. >> AND INSURANCE COSTS AS WELL ARE PRETTY SIGNIFICANT DROPS. >> THOSE ARE RELATED TO THE FTES THAT MOVED. OKAY. THAT'S THE RISK INSURANCE. >> ALL RIGHT. THANK YOU. >> ANY OTHER QUESTIONS ON DRAINAGE? MOVE TO THE CIP. ANY QUESTIONS ON THE DRAINAGE CIP? WE'LL MOVE ON TO SOLID WASTE. >> TELL ME WHAT'S AGAIN IS IN THE SUPPLEMENTALS OF 731,000. >> THESE ARE FEES. NEW FEES AS SOLID WASTE IS PLANNING FOR THE TRANSFER STATION TO BE COMING ONLINE. >> OKAY. ALL RIGHT. >> THANK YOU. >> QUESTION. THERE'S $1 MILLION COST OF SERVICE TRANSFER AS A [01:20:11] PLACEHOLDER FOR A LAND SWAP. ANY DETAILS OF WHAT THAT LAND SWAP MIGHT ENTAIL OR WHERE IT'S LOCATED? >> YES, SIR. IF NOT SPEAKING TO THAT. >> TONY OR I, GO AHEAD. YOU WANT TO EVERYBODY NEEDS TO BE HERE FOR SOME. GOOD MORNING. BRENDA HANEY, SOLID WASTE DIRECTOR. THERE IS. WE PURCHASED A PIECE OF LAND SEVERAL YEARS AGO, RIGHT BEHIND WHERE CORE AND DME ARE. DME HAS GOT A REALLY GREAT PIECE OF PROPERTY RIGHT NEXT TO THEM. THAT'S MUCH BETTER FOR US FOR THE TRANSFER STATION BECAUSE IT HAS BETTER ACCESS TO GEM CRYSTAL. SO WE'RE LOOKING AT SWAPPING THOSE TWO PIECES OF LAND. THAT MILLION DOLLARS IS RETIRING THE DEBT THAT DME HAS ALREADY PAID FOR THAT LAND. SO WE'LL PAY THEM BACK FOR THAT LAND, AND THEN WE'LL PAY THAT ANNUAL COST OF SERVICE TO TO RETIRE THAT DEBT GOING FORWARD. >> OKAY. SO WE ACTUALLY HAD DISCUSSED THIS PARTICULAR LAND ACQUISITION PREVIOUSLY. YES. OKAY. >> THANK YOU. YOU'RE WELCOME. >> I REALLY. >> WANT TO PAY HIM. >> IT WAS. >> ALL ABSORBED IN THE SAME PLACE. I JUST. >> I WANT POWER TO MY TRANSFER STATION. SO. >> MOM AND DAD ARE. >> ADDITIONAL QUESTION. >> GO AHEAD. I'M SORRY. I HAD ONE OTHER QUESTION ON THIS PARTICULAR PAGE, WHICH IS THE FUND BALANCE. I NOTICED THERE'S QUITE A SWING IN THE NUMBERS BETWEEN THE ACTUAL FROM LAST YEAR AND THE YEAR BEFORE THEN THE BUDGET AND THE ESTIMATE AND THE PROPOSAL. I'M JUST KIND OF CURIOUS WHY THESE NUMBERS ARE FLUCTUATING SO MUCH SIGNIFICANTLY. >> YES, SIR. IS HEALTHY FUND BALANCE AND SOME OF THIS A LOT OF THIS IS REALLY STRATEGIC. IN ORDER FOR US TO REVENUE FUND VEHICLES PURELY FROM OPERATING GOING FORWARD. AND THAT'S WHAT YOU SEE IN 2027 AS WELL. THAT WHOLE $7 MILLION IN THE USE RESERVE IS FOR US TO DRAW DOWN THAT CASH BALANCE, TO PAY ENTIRELY FOR THE VEHICLES, AND WE CONTINUE TO USE AS MUCH CASH AS POSSIBLE TO KEEP THAT RATE AS LOW AS POSSIBLE IN THE OUT YEARS. SO THAT'S WHAT THAT'S BEING USED FOR. >> OKAY. SO WE'VE HAD KIND OF A RUN UP ON THAT AND YOU'RE TRYING TO WORK IT BACK DOWN. IS THAT IN A NUTSHELL? >> THAT'S CORRECT. AND AS THE TRANSPORTATION COMES ONLINE AND SOLID WASTE IS EXPECTING A LOT OF GROWTH, YOU KNOW, WE, WE ANTICIPATE THAT, YOU KNOW, THIS IS A THIS IS THE PLAN AS OF NOW, PRELIMINARILY AND USING AS MUCH CASH AS POSSIBLE TO TRY TO KEEP THAT RATE AS LOW AS POSSIBLE. >> THANK YOU. >> YES, SIR. >> I HAVE ONE MORE JUST IN GENERAL. SO THE NEXT PRESENTATION YOU'RE GOING TO SHOW US WHERE WE ARE IN COMPARISON TO OTHER UTILITIES AND WITH MOST OF THESE RATES TOO. >> YES, MA'AM. WE CAN BRING ALL THAT TO YOU. TO THE BOARD. >> YES, MA'AM. THANK YOU. THAT'S HELPFUL, BECAUSE, I MEAN, I MIGHT GET ALL UPSET ABOUT THESE RATE INCREASES, BUT IF WE'RE PROBABLY ON THE LOWER END, WE'RE JUST CATCHING UP WITH THE REST OF THE PEOPLE. SO THANK YOU. >> YES, MA'AM. >> YEAH. >> SO ON THE THE REVENUE SIDE OF SOLID WASTE RATE REVENUES, DOES THAT INCLUDE I DON'T IS IT POSSIBLE TO SEE REVENUE FROM IN THE CITY KIND OF SOLID WASTE CUSTOMERS VERSUS THE WAY STATION AT THE LANDFILL, THE COMMERCIAL NONCOMMERCIAL CONTRACTS IS THAT IS THAT IS LIKE IS RATE ALL OF THAT OR IS RATE THE RESIDENTS GETTING A BILL IN THE MAIL AND THEN WHOLESALE A NON RATE THE LANDFILL? >> YEAH. THOSE THOSE. >> YEAH. >> I THOUGHT WE DID. WE GOT THAT. >> YEAH. I DON'T KNOW IF IT WAS BUDGET OR IF IT WAS JUST AN UPDATE. BUT YEAH, SO I'M JUST TRYING. >> TO WE CAN, WE CAN SHOW THAT SEPARATED OUT OR AND GIVE YOU THAT, THAT DETAIL, BUT THE, THE WHOLESALE AND NON RATES. SO TO ANSWER YOUR QUESTION, YES, IT IS INCLUDED IN THAT LINE IN THE RATE CHANGE WOULD IMPACT THAT AS WELL. SO THERE'S NO RATE CHANGE FOR 27. BUT IT IS ALL IN THE RATE REVENUE. >> RIGHT. AND I'M JUST TRYING TO UNDERSTAND. SO A BUDGET THAT GOES UP BECAUSE THE ENTERPRISE FUND FINDS MORE EXTERNAL CUSTOMERS AND YOU KNOW IS A DIFFERENT STORY THAN, YOU KNOW, A BUDGET THAT GOES UP BECAUSE COST OF SERVICE FOR THE EXISTING, YOU KNOW, RESIDENTS GOES UP. SO I JUST TRIED TO TRYING TO PICK THAT APART IN THIS. AND SO YEAH, THAT'D BE GREAT IF WE COULD GET THE COMPARISON OF. >> THAT BREAKDOWN. >> YEAH. >> AND THEN I HAVE TWO [01:25:02] QUESTIONS AND I APOLOGIZE IF THESE HAVE BEEN ANSWERED. AND I JUST MIGHT HAVE MISSED IT WHEN TRYING TO COMPARE MY NUMBERS TO WHAT NUMBERS ARE ON THE SCREEN OPERATIONAL. PRETTY BIG JUMP IN OPERATIONAL COSTS. DID I MISS THE EXPLANATION ON WHY THERE'S ABOUT A 35% INCREASE? >> SO THAT INITIAL INCREASE IN OPERATIONS IS JUST DUE TO THE ANTICIPATED GROWTH FOR SOLID WASTE AND. I THINK THAT'S THAT'S ALL THAT'S THAT LINE FOR LOOKING AT THE COST OF SERVICE TRANSFERS. THAT'S WHERE THE THE ONE TIME MILLION DOLLARS IS. BUT IT'S JUST DUE TO THE INCREASE THAT SOLID WASTE NEEDS AND EXPENDITURES IN TERMS OF OPERATIONS AND THE NEW DEVELOPMENTS THAT ARE COMING ON. >> AND PERSONNEL COSTS EVERYWHERE ELSE, IT'S BEEN 3 TO 3 AND A HALF, 6% HERE. ARE WE ANTICIPATING GROWTH IN THAT DEPARTMENT OR. >> THAT IS CORRECT. WE'RE RAMPING UP THE GROWTH FOR THE TRANSFER STATION. SO IN THIS PARTICULAR PROFORMA YOU WILL SEE A DIFFERENT INCREASE ON PERSONNEL OF ABOUT 6% FOR 28, 2930, AND I THINK 9% IN 2031. >> AND THIS IS THAT 731,000 OF SUPPLEMENTAL, RIGHT? >> THAT'S THAT'S SEPARATE. >> SORRY, LET ME JUST JUMP IN JUST FOR ONE SECOND. JUST WANT TO CLARIFY THAT THAT SUPPLEMENTAL IS ACTUALLY TO INCREASE THE ROUTES THAT ARE DUE TO DEVELOPMENT. SO AS CUSTOMERS GROW, THEY NEED TO ADD MORE ROUTES, THEREFORE MORE PERSONNEL AND MORE VEHICLES. OKAY. SUPPLEMENTAL PERSONNEL. >> MAKES SENSE. THANKS. >> AND OUR RESERVES ARE DECLINING EVERY YEAR. IS THAT INTENTIONAL OR IS THAT BECAUSE I'M LOOKING AT AN OLD DOCUMENT? >> YES, SIR. THAT'S THAT'S STRATEGICALLY INTENTIONAL FOR REVENUE FUNDING, VEHICLE REPLACEMENTS. >> OKAY. AND JUST IN GENERAL, OUR BUDGETS ESTIMATES FOR 2025, SIX ESTIMATES VERSUS ACTUAL THROUGHOUT THE DOCUMENT, AT LEAST IN THE DOCUMENT PROVIDED, HAVE BEEN VERY WILD. IS THERE JUST, YOU KNOW, IT'D BE GREAT TO SEE THOSE A LITTLE BIT MORE IN LINE IF POSSIBLE, BUT I DON'T KNOW IF WE JUST HAD BAD ESTIMATES OR WHAT, BUT THEY'RE PRETTY SIGNIFICANT VARIANCES. >> YEAH, CERTAINLY. I MEAN, WE, YOU KNOW, WE ESTIMATE THESE OFF OF, YOU KNOW, THE ACTUALS AT THE PERIOD OF TIME AND A LOT OF OUR UTILITIES BEING VERY SEASONAL, WE ARE JUST NOW STARTING TO SEE A LOT OF THAT RAMP UP. AND SO, YOU KNOW, AS, AS WE GET CLOSER TO THE YEAR, WE, WE DEFINITELY GET BETTER ESTIMATES AND WE WILL HAVE THESE UPDATED FOR THE 27TH PRESENTATION. >> YEAH. JUST WHEN WE'RE LOOKING AT 12% RATE INCREASES AND 7% RATE INCREASES, WHEN THE BUDGET'S VERSUS YOUR ESTIMATES ARE THAT DIFFERENT. IT'S CONCERNING BECAUSE THOSE ARE HUGE INCREASES THAT OUR BUDGETS AREN'T IN LINE WITH. OUR ESTIMATES AREN'T IN LINE WITH OUR BUDGETS. SO IT JUST MAKES ME CONCERNED THAT WE'RE GOING TO MATERIALIZE MUCH HIGHER INCREASES THAN WHAT WE'RE ESTIMATING. >> YEAH. >> I WOULD JUST POINT OUT FOR FOR WATER AND SOLID WASTE, VERY WEATHER DEPENDENT, MUCH MILDER SUMMER THAN WE HAD ANTICIPATED LAST YEAR GOING INTO THIS YEAR'S BUDGET. AND THAT'S REALLY A LOT OF THE EXPLANATION HERE. NOW THAT THINGS ARE STARTING TO RAMP UP IS KIND OF COOL, KIND OF RAINY DAY, I THINK, TOMORROW. BUT I THINK THE REST OF THE SUMMER IS PROJECTED TO, TO, TO KIND OF GET BACK TO NORMAL. AND I THINK YOU'LL SEE MORE WATER SALES AND, AND ELECTRIC. I DON'T THINK WE'RE GOING TO MAKE UP THAT DIFFERENCE. BUT AGAIN, MUCH DIFFERENT WEATHER PATTERN THAN WHAT WE HAD ANTICIPATED. >> YEAH. AND I ALWAYS LIKE TO MAKE SURE, JUST FROM A PERSONAL NOTE, AS BEING A BUSINESS OWNER, THAT WE'RE COMPENSATING OUR EMPLOYEES CORRECTLY WITH THE COST OF LIVING INCREASES AND INFLATION. AND 3% IS PRETTY CONSERVATIVE FOR WHAT WE'RE PROBABLY LOOKING AT. SO IT'D BE, YOU KNOW, IF WE'RE GOING TO SEE AN INCREASE, I'D LIKE TO SEE EMPLOYEES COMPENSATED, AT LEAST WITH THE COST OF LIVING, IF NOT MORE THAN THAT. >> YEAH. AS WE BRING ON MORE DEBT FOR THINGS LIKE THE TRANSFER STATION, HOW COME WE'RE NOT ILLUSTRATING A DEBT COVERAGE RATIO ON THIS SLIDE? >> YEAH. APOLOGIES. IT'S IT'S JUST WASN'T SHOWN HERE. BUT I BELIEVE THE 27 COVERAGE RATIO IS 1.6. >> IT LOOKS HEALTHY. >> YEAH. AND THEN FROM THERE OUT IT'S TWO OR HIGHER. >> YEAH. YEAH. IT LOOKS. >> YEAH. >> THAT'S A VERY GOOD EXPLANATION. MATT'S GOING. >> TO. >> TELL YOU IT LOOKS. >> IT LOOKS FINE TO ME. YEAH. >> YEAH. THE DEBT SERVICE COVERAGE RATIO PERTAINS TO REVENUE BONDS AND THE SOLID WASTE DEPARTMENT NOT BEING PART OF THE UTILITY SYSTEM, WHICH INCLUDES ELECTRIC WATER AND WASTEWATER DON'T ISSUE REVENUE BONDS. SO THERE IS NO DEBT SERVICE COVERAGE RATIO ASSOCIATED WITH SOLID WASTE. [01:30:01] THAT WOULD BE SHOWN OR NEEDED UNLESS THERE CAME A TIME WHEN SOLID WASTE WAS INCORPORATED INTO THE UTILITY SYSTEM AND REVENUE BONDS WERE ISSUED, WHICH WE DON'T ANTICIPATE. SO. SO THAT'S THE REASON IT'S IT'S NOT SHOWN. YEP. >> ARE THERE ANY REGULATORY OR LEGISLATIVE ACTIONS THAT WERE NOT CONSIDERING IN THIS THAT WE FEAR MIGHT HAVE AN IMPACT AT SOME POINT? >> YEAH. I DON'T KNOW IF YOU WANT TO TALK ABOUT IT, BUT CERTAINLY GOING INTO THE NEXT LEGISLATIVE SESSION, THERE'S BEEN A NUMBER OF THINGS THAT HAVE COME OUT, EVERYTHING FROM, YOU KNOW, DATA CENTER RESTRICTIONS, WHOLESALE POWER, YOU KNOW, POTENTIAL DISCUSSIONS ON CAPS, ON GENERAL FUND TRANSFERS, JUST AN ASSORTMENT OF THINGS. AND WE'LL JUST KIND OF HAVE TO TAKE A WAIT AND SEE APPROACH. AND CERTAINLY, YOU KNOW, STAFF IS ALWAYS ADVOCATING FOR LOCAL CONTROL AND BEING ABLE FOR THE COUNCIL AS A CHARTER COMMUNITY TO BE ABLE TO MAKE THOSE DECISIONS HERE LOCALLY. BUT AGAIN, YEAH, A LOT OF THINGS THAT CAN HAPPEN IN THE LEGISLATIVE SESSION. WE'LL CERTAINLY STAY ON TOP OF THAT AND, AND REACT TO THEM AS AS THEY HAPPEN, IF THEY HAPPEN. >> ANY OTHER QUESTIONS ON THE SOLID WASTE BUDGET? WE CAN MOVE ON TO THE CIP. ANY QUESTIONS ON SOLID WASTE CIP PLAN? OKAY. NOW WE MOVE ON TO THE RATE. >> COULD IN THE FUTURE, COULD WE SEE NUMBERS TO BACK UP THE ASSUMPTIONS LIKE USAGE RATES, OR IS THIS AN AVERAGE BILL OR WHAT? WHAT IS THIS ASSUMPTION? >> YES, ABSOLUTELY. WE CAN SHOW WHAT WE'RE USING AS THE BASIS. YEAH. >> SO OVERALL THAT'S 3.6% INCREASE FOR THE RESIDENTIAL. >> IS HE HERE. SO DRAINAGE WE'VE BEEN TALKING ABOUT DRAINAGE IS A 12% OR 13%. OR IF YOU STRETCH THAT 13% OUT FOR FIVE YEARS, YOU GET ALMOST A DOUBLING. BUT IT'S, IT'S A REALLY PRETTY SMALL FEE HERE. OBVIOUSLY, SOMEBODY HAD A PLAN WHEN THEY PUT THAT, THAT GROWTH. PLAN TOGETHER THAT WE SAW IN OUR ORIGINAL BACKUP. AND YOU KNOW, I KNOW WE'RE BACKING IT OUT BECAUSE OF, I'M SURE, CONCERN ABOUT REACTION TO A TO AN ALMOST DOUBLING IN FIVE YEARS. BUT I WOULD LIKE TO UNDERSTAND EITHER EITHER IF THAT PLAN IS COMPLETELY GONE, THAT'S FINE. BUT IF THERE IS A NEED THERE AND IT'S WE'RE TALKING ABOUT A $3 A MONTH FEE THAT THAT IF OVER THE NEXT 5 OR 5 YEARS BECOMES A $6 A MONTH FEE, IF IT PROVIDES A VALUABLE SERVICE TO THE CITY, TO THE RESIDENTS, I THINK IT WOULD BE GOOD TO, TO UNDERSTAND THAT AND TO BE ABLE TO DEBATE THAT AS OPPOSED TO, YOU KNOW, YEAH. OR NOT EVEN HAVE THE OPTION TO SEE IT. >> SORRY. I DID JUST WANT TO ADD ON, ON THE DRAINAGE FEE, IN PARTICULAR, THE DRAINAGE FEE, THE CURRENT DRAINAGE FEE WAS IMPLEMENTED IN 2002 AND HAS NOT BEEN ADJUSTED FOR 24 YEARS. SO AS WE'VE GONE THROUGH THE PROCESS OF IDENTIFYING OUR DRAINAGE NEEDS THROUGHOUT THE CITY, AND WE'RE CURRENTLY IN THE PROCESS OF CONDUCTING THE DRAINAGE STUDY, WE KNOW THAT THERE IS AN INCREASE IN CONSTRUCTION COSTS SINCE, YOU KNOW, 2002. AND WE KNOW THAT THE THE 13%, AS IT'S BEEN MENTIONED, SOUNDS LIKE A LARGE INCREASE. BUT GIVEN THAT THE RATE HASN'T INCREASED IN 24 YEARS, IN DOLLAR TERMS, IT'S RELATIVELY LOW. SO JUST WANTED TO. >> NOTE THAT THAT'S AN IMPORTANT POINT. PROBABLY SHOULD HAVE PUT THAT IN THE SLIDE. >> ONE MORE QUESTION. >> ANOTHER QUESTION. JUST LOOKING AT THIS PAGE I HAD THE QUESTION THAT MAYBE A REALLY DUMB ONE. IS THIS PAGE SUPPOSED TO BE IN THOUSANDS OF DOLLARS, OR IS THIS AVERAGE AVERAGE BILLING PER RESIDENT PER COMMERCIAL USER? I WAS JUST CURIOUS. HUNDRED AND $70 OR $270 MILLION? >> YES, SIR. WE WE DON'T HAVE THE BASIS SHOWN HERE, BUT SORRY, AS ANOTHER MEMBER POINTED OUT, WE WILL GET THAT BASIS TO YOU FOR WHAT THIS IS WHAT WE'RE BASING THIS OFF OF. >> THAT'S THE. >> THE I THINK I THINK THE ANSWER TO THAT IS THAT THIS IS THE, THE THEORETICAL MONTHLY IMPACT TO KIND OF AN AVERAGE [01:35:05] CUSTOMER. SO FOR DME, FOR EXAMPLE, THAT'S A CUSTOMER THAT USES 1000 KILOWATT HOURS PER MONTH, RIGHT? AND SO EACH ONE OF THOSE UTILITIES HAS THEIR OWN KIND OF AVERAGE CUSTOMER. SO AGAIN, THIS IS A. >> THIS IS. >> AVERAGE AVERAGE. >> CUSTOMER BILL. >> BUT THAT'S PER CUSTOMER. >> YEAH. SO $9.58. ALL OF THESE THINGS WOULD BE THE BILL IMPACT ON THE CUSTOMER. >> OKAY. AND ONLY 1420 BUCKS A YEAR AVERAGE COMMERCIAL CUSTOMER. >> THE OTHER THING I'LL POINT OUT, WE HAD A NOTE, RIGHT FOR ELECTRIC, EVEN THOUGH WE'RE DOING A 3% INCREASE, SINCE THAT 3% IS THE BASE RATE, IT'S ONLY ABOUT A 45% OF THE TOTAL. THE ACTUAL NET IMPACT OF THAT, THAT 2.3, WHATEVER REPRESENTS IS ABOUT 1.5%. >> YEAH. >> OKAY. SO AGAIN, THIS IS AN AVERAGE MONTHLY BILL PER CUSTOMER. >> PER AVERAGE CUSTOMER. >> AVERAGE CUSTOMER, AVERAGE BILL PER AVERAGE CUSTOMER. >> YEAH. AND. >> AND I WOULD. >> SAY $67. >> A MONTH, BUT I WOULD SAY IN RATE ONLY BECAUSE THE CREDIT CARD FEE COMES ALONG THIS YEAR AND THAT'S NOT IN HERE. SO I THINK OUR EFFORTS TO MAKE SURE WE'RE EDUCATING FOLKS ON THE ALTERNATIVES THAT DON'T INCUR THE CREDIT CARD FEE, WHETHER IT'S USING THE BANK TRANSFER, THEIR ONLINE BANKING, THINGS LIKE THAT, BECAUSE THAT'S ANOTHER LINE ITEM THEY'RE GOING TO SEE ON THEIR BILL. SO AS WE THINK ABOUT THESE RATES AND THE COST THAT THE BASE RATE IS BEARING, THERE'S ANOTHER LITTLE CHARGE OUT THERE THAT'S GOING TO BE NEW COMING OCTOBER 1ST TOO. SO AS WE CONSIDER THESE RATES, WE GOT TO, I THINK, KEEP THAT IN MIND AND KEEP IN MIND THE EDUCATION IT TAKES TO MAKE SURE FOLKS KNOW THERE ARE ALTERNATIVES TO THE CREDIT DEBIT CARD FEE. YEAH. >> YEAH. SO, SO I LOOK AT THIS AND I THINK JUST WRAPPING UP THE PRESENTATION, THESE ARE ALL BASICALLY RELATED TO GROWTH. THE BASE RATE IN ELECTRICAL IS TO INCREASE THE RESERVE FUNDS DUE TO INCREASED LOAD THE WATER. WE NEED A NEW WATER, A MAJOR WATER TREATMENT PLANT EXPANSION AND SOME TRANSMISSION LINE SUPPORT, YOU KNOW, TO SUPPLY MORE WATER FOR MORE PEOPLE AND WASTEWATER. YOU KNOW, IT'S A BRAND NEW WASTEWATER TREATMENT PLANT PLANNED OVER THE NEXT, YOU KNOW, UNDER CONSTRUCTION VERY SOON AND FOR THE NEXT FIVE YEARS. SO. I, I DO WISH WE HAD DONE SOMETHING DIFFERENTLY WITH IMPACT FEES FIVE YEARS AGO SO THAT WE MAYBE HAD SOME MORE IMPACT FEE STORED UP. BUT AT THIS POINT, I DON'T KNOW THAT WE'RE GOING TO GET AROUND THIS WITH THE GROWTH WE HAVE. >> CORRECT. >> SO I BLAME I BLAME THE THE PBB MEMBERS FROM FIVE YEARS AGO. >> SO YEAH, IT'S ALL THEIR FAULT. >> SO SORRY. THIS IS MY LAST TERM. >> I'LL HOLD IT A MINUTE. I JOINED THE BOARD IN 21. DOES THAT INCLUDE ME THEN? I DON'T KNOW. >> SO ARE THERE ANY OTHER QUESTIONS ON THE ON THE UTILITY RATE SUMMARY PAGE. SO WE'LL GO ON TO THE HISTORY. >> OF COURSE THE HISTORICAL AGAIN. AND THEN JUST A REMINDER OF THE NEXT STEPS. WE WILL BE BRINGING THIS BACK TO YOU ON THE 27TH. AND TAKE ANY FEEDBACK YOU MIGHT HAVE. >> I JUST WANTED TO COMMENT AGAIN ABOUT THE. WE'RE GETTING THESE BIG BUMPS. AND SO THE CITY COUNCIL, THAT MAY BE A BIT OF A PROBLEM, YOU KNOW, FROM FEEDBACK FROM CONSTITUENTS. SO JUST BE AWARE OF THAT. >> AND JUST TO PLUG IT ONE MORE TIME, LET GROWTH PAY FOR GROWTH AS MUCH AS POSSIBLE. SO I DON'T KNOW, LIKE I SAID, IN THE, IN THE RATE STUDIES THAT WE'RE LOOKING AT, OR NEXT TIME IMPACT FEES COME UP BEFORE THIS BOARD, WHICH I'M SURE WILL BE IN THE NEXT FEW YEARS, WE NEED TO CONSIDER IF WE. IF WE DON'T HAVE LARGE CUSTOMERS OR FUTURE DEVELOPMENT PAY FOR THAT INFRASTRUCTURE, THEN, YOU KNOW, WE WE ALL PAY FOR IT. EVEN EVEN THOSE IN ESTABLISHED NEIGHBORHOODS. IS THERE ANY OTHER COMMENTS OR QUESTIONS? THEN WE STAND ADJOURNED. * This transcript was compiled from uncorrected Closed Captioning.