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THANK YOU ALL.WE HAVE, UM, JUST ONE ITEM TODAY ON OUR B SESSION AGENDA.
WE'RE RECONVENING FROM OUR PUBLIC HEARINGS REGARDING VOLUNTARY ANNEXATIONS ITEM TWO AND THREE.
SO WE'LL TAKE UP ITEM NUMBER ONE AT THIS TIME.
UH, I DON'T THINK THERE'S ANY NEED TO RECA TO CALL THE ROLE AGAIN, SINCE OUR MEETING IS ALREADY CONVENED.
UH, BUT I DID WANNA RECOGNIZE OUR FORMER COLLEAGUE AND A MEMBER OF OUR STATE DELEGATION AT THIS POINT.
OUR, UH, STATE REPRESENTATIVE FROM 1 25 RAY LOPEZ, IS WITH US TODAY.
RAY, THANK YOU FOR ALL YOUR GOOD WORK, UH, THIS YEAR, RAY.
ALRIGHT, WE'LL MOVE NOW TO, UH, ITEM NUMBER ONE, MAYOR AND COUNCIL.
UH, TODAY'S BRIEFING, UH, UH, BEFORE YOU, UH, WILL BE PROVIDED BY, UH, JEFF COYLE, WHO WILL, IN OUR RECAP, UH, THE LEGISLATIVE SESSION.
WE'VE HAD PLENTY OF, UH, COUNCIL DISCUSSIONS, UH, BOTH HERE AS WELL AS AS A SESSION.
UM, I DID WANT TO, ON THE FRONT END, THERE ARE A NUMBER OF STAFF MEMBERS AND, AND FOLKS THAT WE WORK WITH THAT'LL BE HERE AS PART OF TODAY'S RECAP.
BUT I WANTED TO TO RECOGNIZE THAT, YOU KNOW, WE HAD A NUMBER OF STAFF WHO SPENT A CONSIDERABLE AMOUNT OF TIME UP IN AUSTIN, JEFF, MEGAN, CHRISTINE, UM, A LOT OF RESOURCES.
ALSO WANT TO THANK, UH, UH, A NUMBER OF YOU WHO MADE TIME TO GO TO AUSTIN, UH, AS WELL AS, UH, COUNCILMAN SYA AS THE CHAIR OF THE I G R COMMITTEE.
IT WAS, UH, THESE, UH, THIS COMES AROUND EVERY TWO YEARS, AND THERE'S A LONG LEAD TIME TO PREPARE.
AND, UH, SIX MONTHS SOMETIMES GOES BY.
IT FEELS LIKE IT'S GOING BY REAL FAST.
AND IN OTHER, OTHER POINTS OF TIME, IT, IT SEEMS LIKE IT'S, UH, DRAGGING A LITTLE BIT.
BUT I WANTED TO RECOGNIZE THE TEAM AND THANK THEM FOR ALL THE WORK.
UH, IT WAS, IT'S A GRIND AND WE ALL KNOW IT, AND I WANTED TO RECOGNIZE THEM UP FRONT.
SO JEFF IS GONNA WALK US THROUGH A RECAP, UH, OF THE LEGISLATIVE SESSION.
UM, ON ONE PARTICULARLY TOUGH DAY DURING THE SESSION, I MUST HAVE COMPLAINED TO ERIC DURING ONE OF OUR 10 30 AT NIGHT DAILY PHONE CALLS ABOUT HOW ROUGH THINGS WERE BECAUSE THE NEXT MORNING THERE WAS A, UH, DIRECTOR'S, UH, MEETING, DEPARTMENT HEAD MEETING GOING ON HERE THAT I WAS MISSING.
AND, UH, ERIC MUST HAVE RELAYED TO EVERYBODY, UH, THAT I COULD USE A LITTLE BOOST OF SUPPORT.
AND SO I WAS GETTING READY TO GO TO A 8:00 AM HEARING, AND MY PHONE WITHIN TWO MINUTES, STARTED GOING DINGING, DING, DING, DING, DINGING, DINGING, DINGING.
I HAD MAYBE THREE OR FOUR DOZEN TEXTS IN A ROW FROM ALL COLLEAGUES ACROSS THE CITY EXPRESSING THEIR SUPPORT AT A BOY.
KEEP GOING, KEEP FIGHTING FOR US.
SO IF THERE'S ANY QUESTION AS TO WHAT KIND OF LEADER ERIC IS, I THINK THAT SUMMARIZED IT WELL.
UM, I ALSO WOULD LIKE TO JUST THANK A FEW PEOPLE BEFORE WE START.
CHRISTINE WRIGHT, UH, OF THE 140 DAY SESSION, EASILY SPENT NORTH, NORTH OF A HUNDRED OF THOSE DAYS, UH, AT THE CAPITOL IN AUSTIN DAYS WHEN I COULDN'T BE THERE.
UM, EDUARDO CARRASCO, UH, WAS HANDLING ALL OF THE DIALOGUE AND COMMUNICATION WITH ALL THE DEPARTMENTS, ANALYZING THOUSANDS OF BILLS, UH, TO BE ABLE TO INFORM OUR EFFORTS.
UH, MEGAN DODGE, IN ADDITION TO PICKING UP ALL THE DUTIES THAT I WAS DROPPING BY BEING UP THERE, UH, WAS HANDLING ALL THE LETTERS OF SUPPORT AND OPPOSITION THAT WE WERE CONSTANTLY DISTRIBUTING UP THERE.
SO OUR TEAM, UH, DID A LOT OF WORK, AND I WANNA THANK ALL YOU GUYS.
UM, IN CASE YOU HAVE QUESTIONS FOR THEM, A NUMBER OF MEMBERS OF OUR LOBBY TEAM ARE HERE AS WELL.
SNAPPER CARR, CARRIE SIMMONS, MARK RODRIGUEZ, AND JESSE AND SARAH.
UH, AT A TIME WHEN BEING A, UH, A CITY LOBBYIST IS NOT THE MOST POPULAR JOB IN THE CAPITOL, THESE GUYS WORKED REALLY, REALLY HARD FOR US.
UH, AND THEN ALSO ERIC MENTIONED ALL OF OUR PARTNERS.
WE HAD A GREAT SESSION WORKING WITH ALL OF OUR OTHER COMMUNITY ORGANIZATIONS.
IN THE ROOM RIGHT NOW IS HILLARY FROM THE RIVER AUTHORITY, SETH, DEB, AND NAOMI FROM OUR SCHOOL DISTRICTS.
ASHLEY FROM VISIT SAN ANTONIO, UH, ALBERT FROM U T S A, JAMIE FROM THE UT HEALTH SCIENCE CENTER, PETE FROM VIA SOPHIA FROM THE PORT, STEPHANIE FROM THE CHAMBER, VIC FROM SAMCO, AND WARREN FROM THE, UH, FIRE AND POLICE PENSION FUND.
SO WE HAD A GREAT SESSION WITH ALL THEM, AND WE'RE GRATEFUL FOR THE, FOR THE WORK YOU GUYS SEEN.
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MENTIONED IT, BUT, UH, OUR REPRESENTATIVE, UH, LOPEZ, WAS FABULOUS IN HIS SHORT FIRST SESSION.OUR WHOLE DELEGATION WAS, AND YOU'LL SEE IN MY REPORT HERE, UH, THEIR CONTRIBUTIONS SPRINKLED THROUGHOUT.
SO, FIRST OF ALL, AS AN OVERVIEW, UH, THE, THIS SESSION SAW JUST OVER 7,500 BILLS, WHICH IS TYPICAL.
UH, IN THE END, UNDER 15, LESS THAN 1500 OF THEM PASSED, SO LESS THAN 20% PASSAGE RATE, WHICH EXEMPLIFIES IT'S, UH, IT'S DIFFICULT TO GET LEGISLATION THROUGH THE FULL PROCESS.
UH, OUR CITY TRACKED ABOUT 1600 OF THEM.
WHAT I MEAN BY TRACKED IS IDENTIFIED A BILL THAT COULD HAVE AN IMPACT ON THE CITY, SENT IT TO DEPARTMENTS TO ANALYZE FOR OUR EFFORTS, MONITORED AS IT MOVED ALONG IN THE PROCESS, AND THEN PARTICIPATED, UH, THROUGH TESTIMONY OR WRITTEN SUPPORT OR OTHERWISE WHEN NECESSARY.
UH, NOW THAT THE SESSION'S OVER, THE GOVERNOR HAS A PERIOD TO SIGN OR VETO BILLS, OR JUST LET THEM GO INTO LAW, AND THE DEADLINE FOR THAT IS, UH, SUNDAY, JUNE 16TH.
AS YOU RECALL, THIS COUNCIL PASSED OUR LEGISLATIVE PROGRAM LAST YEAR.
IT WAS STRUCTURED WITH OUR, WITH SIX PRIORITIES FIRST, UH, SECOND, THE INITIATIVES, THE BILLS THAT WE TAKE FORWARD IN THEIR VERY FEW OF THOSE, UH, THE ENDORSEMENTS, OUR SUPPORT FOR THE EFFORTS OF OTHER PARTNERS IN THE COMMUNITY, UH, PROTECTION OF OUR COMMUNITY INTEREST, WHICH IS OUR CATCHALL OF ALL THE BILLS THAT WE DON'T SPECIFICALLY SPELL OUT, CAN'T ANTICIPATE, BUT NONETHELESS COME UP AND WE HAVE TO ENGAGE ON.
AND THEN FINALLY, OUR LIST OF OUR COMMUNITY PARTNERS, UH, WITH WHOM WE'RE ALL UP THERE REPRESENTING OUR COMMUNITY AND OUR COMMUNITY'S INTERESTS.
SO, OUR FIRST PRIORITY, I'M GONNA STRUCTURE OUR REPORT BASED ON THOSE PRIORITIES IN OUR PROGRAM.
OUR FIRST PRIORITY, OF COURSE, WAS MEANINGFUL PROPERTY TAX RELIEF.
UH, WE SAID WE WERE SEEKING MEANINGFUL RELIEF THROUGH A COMBINATION OF MORE STATE FUNDING FOR SCHOOLS AND MORE FLEXIBILITY FOR YOU AT THE LOCAL LEVEL TO PROVIDE TARGETED RELIEF.
AND THERE WERE THREE COMPONENTS OF THAT.
THE FIRST, OF COURSE, WAS THE, AN INCREASE IN THE, IN THE STATE'S SHARE OF PUBLIC ED, WHICH TAKES THE BURDEN OFF LOCAL TAXPAYERS.
I THINK YOU ALL KNOW THAT HB THREE PASSED.
IT WAS THE PRIORITY LEGISLATION FOR THE HOUSE.
IT PROVIDES MORE THAN $11 BILLION IN NEW FUNDING FOR PUBLIC SCHOOLS.
SIX AND A HALF OF THAT, UH, IS DIRECT MONEY TO ISDS.
SO THAT'S FOR TEACHER RAISES, THAT'S FOR EXPANDING, UH, PRE-K TO FULL DAY FOR ELIGIBLE KIDS.
IT'S MORE MONEY FOR DUAL LANGUAGE.
IT ALSO CREATES A MORE FAVORABLE, UM, FORMULA FOR AT RISK, UH, COMMUNITIES AND, AND STUDENTS.
AND THEN THE OTHER 5 BILLION OF THAT 11 POINT A HALF IS PROPERTY TAX RELIEF.
AND THAT'S ACCOMPLISHED BY THE STATE.
UM, CAPPING SCHOOL DISTRICTS AT 2.5%.
UH, IS THE, THE PERCENTAGE THEY CAN GROW IN M AND O PROPERTY TAX REVENUES WITH THE STATE INTENDING TO MAKE UP THE LOST REVENUE.
THEY'VE DONE THAT WITH THIS BIENNIUM, UH, GOING FORWARD IS WHAT REMAINS TO BE SEEN.
THERE WERE NO NEW FUNDING SOURCES CREATED FOR IT.
SO THAT'S THE, THE LOOMING DISCUSSION, UH, TWO YEARS FROM NOW, UH, WITH WHAT THEY DID THIS SESSION.
THE STATE'S SHARE OF LOCAL EDUCATION OF, OF STATEWIDE EDUCATION FUNDING HAS INCREASED FROM 38 TO 45%.
SO VERY MUCH IN KEEPING WHAT WITH WHAT WE WERE HOPING TO SEE OUT OF THIS LEGISLATURE.
THE SECOND PIECE WAS MORE FLEXIBILITY FOR YOU ALL TO TARGET RELIEF.
THERE WERE BILLS TO CREATE ANCHOR NEIGHBORS, UH, WHICH WOULD FREEZE TAXES FOR THOSE WHO HAVE BEEN IN THEIR COMMUNITIES FOR A LONG TIME.
UH, MORE FLEXIBILITY AROUND HOMESTEAD EXEMPTIONS TO OFFER FLAT RATES, FOR EXAMPLE, INSTEAD OF JUST, UH, FLAT AMOUNTS INSTEAD OF JUST PERCENTAGES.
UH, THOSE BILLS DID NOT, UH, PASS THE SESSION.
AND THEN THE THIRD PART OF THIS PRIORITY WAS THE CITY BEING OPPOSED TO A REDUCED ROLLBACK RATE THAT PROVIDED LITTLE RELIEF TO TAXPAYERS, BUT WOULD HURT THE CITY'S ABILITY TO PROVIDE CRITICAL SERVICES, AS YOU ALL KNOW AS WELL, SB TWO PASSED, THAT WAS THE PART AND PARCEL TO HB THREE, THE SCHOOL FUNDING BILL AND THE PROPERTY TAX BILL.
AND WHAT SB TWO DOES IS REDUCE THE CURRENT ROLLBACK RATE OF 8% TO 3.5%.
SO IT WOULD TRIGGER AN AUTOMATIC ELECTION IF OUR PROPERTY TAX REVENUES WERE TO EXCEED THREE PER 0.5% IN ANY GIVEN YEAR.
UH, IT EXCLUDES JUNIOR COLLEGES AND HOSPITAL DISTRICTS, AND ANY TAXING UNIT THAT, UH, ASSESSES LESS THAN HILLARY, WHAT IS IT, 0.25, 2.5%.
UM, THIS IS AN IMPORTANT PIECE.
IT INCLUDES A CARRY FORWARD PROVISION, WHICH IS WHAT, WHICH WAS THE PIECE WE FOUGHT HARDEST TO GET INCLUDED.
THAT ESSENTIALLY SAID, ALLOWS A TAXING UNIT TO BANK ANY UNUSED TAX RATE INCREMENT.
SO IF THE CAP IS AT 3.5%, AND WE ARE AT 2.5% IN ONE YEAR, WE CAN BANK THAT 1% OF CAPACITY FOR UP TO THREE YEARS AND USE IT TO EXCEED THE 3.5% IN A SUBSEQUENT YEAR WITHOUT
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THAT AUTOMATIC ELECTION.SO WHAT IT DOES IS SMOOTH OUT THE UPS AND DOWNS THAT YOU ALL ARE FAMILIAR WITH, UH, IN TERMS OF PROPERTY TAXES.
IT ALSO ENDED UP CUTTING THE NEGATIVE IMPACT TO THE CITY, UH, IN ABOUT HALF.
AND SO, UH, THAT LAST POINT RIGHT THERE SUMMARIZES THAT IF, IF A 3.5% HAD BEEN IN PLACE FOR THE PAST DECADE FROM OH NINE TO 19, THE CITY WOULD'VE LOST $81 MILLION IN REVENUE OVER THOSE 10 YEARS.
THE AVERAGE SAVINGS, UH, TO THE, TO THE MEDIAN, UM, HOMESTEAD WOULD'VE BEEN, UH, JUST ABOUT A DOLLAR PER MONTH.
BUT THOSE NUMBERS WERE SIGNIFICANTLY HIGHER.
WELL, THE LOST REVENUE WAS SIGNIFICANTLY HIGHER WITHOUT THE CARRY FORWARD.
IT WAS, UH, 137 MILLION, AND THE SAVINGS STILL JUST A DOLLAR 65 TO THE AVERAGE HOMEOWNER.
SO THE, THE, UH, IMPACTS OF THIS OBVIOUSLY WILL BE FELT GOING FORWARD.
IT WAS TALKED ABOUT EXTENSIVELY AT THE SESSION.
WHAT THIS IS, IS A CAP ON FUTURE GROWTH IN PROPERTY TAXES.
UH, AND I SUSPECT THAT AS, AS YOU ALL MEET, TO DISCUSS FINANCIAL POLICIES AND OF COURSE, THE BUDGET IN THE COMING WEEKS, UH, THE IMPACTS OF THIS BILL WILL BE, UH, CERTAINLY FRONT AND CENTER.
OUR SECOND PRIORITY IS PROTECTING, UH, THE TAXPAYER'S INVESTMENT IN OUR PUBLIC UTILITIES, PRIMARILY.
THERE WAS DISCUSSION BEFORE THE SESSION ABOUT C P S ENERGY AND POTENTIALLY A DIVERSION OF, UH, THE CITY'S RETURN ON OUR INVESTMENT FOR OWNING THE UTILITY.
THERE WAS A BILL FILED THAT DIDN'T DO THAT EXACTLY, BUT IT WOULD'VE ALLOWED THE COUNTY TO ASSESS FRANCHISE FEES, UH, IN THE UNINCORPORATED AREAS OUTSIDE THE CITY, THAT THAT BILL DID NOT GO ANYWHERE.
AND SO, UM, WE WERE SUCCESSFUL IN THIS PRIORITY IN TERMS OF PROTECTING OUR UTILITIES.
OUR THIRD MARISSA IS REALLY THE, THE BIG CATEGORY, UH, CHAIRMAN SALANA, THE PRESERVING LOCAL DECISION MAKING.
THIS IS WHAT WE SPEND MOST OF OUR TIME ON, WHICH IS FIGHTING FOR THE ABILITY OF YOU AS THE LOCAL ELECTED OFFICIALS TO MAKE DECISIONS THAT YOU THINK ARE IN THE BEST INTERESTS OF YOUR CONSTITUENTS.
SO THE BIG LOSS IN THAT CATEGORY WAS RELATED TO RIGHT OF WAY FEES.
THE, UH, CABLE INDUSTRY, AS YOU KNOW, BROUGHT A BILL FORWARD THAT RELIEVES THEM OF PAYING ONE OF THE TWO RIGHT OF WAY FEES THAT THEY CURRENTLY PAY TO USE OUR PUBLIC PROPERTY TO RUN THEIR FOR-PROFIT SERVICE IN STATE LAW.
THERE'S ONE FOR CABLE FRANCHISES, THERE'S ONE FOR TELEPHONE ACCESS LINE.
AND HISTORICALLY THEY'VE BEEN TWO DIFFERENT, UH, UH, REG REGULATORY REGIMES, UH, WITH, UH, SOME COMPANIES, THE BIG ONES PRIMARILY OFFERING BOTH PHONE AND CABLE SERVICES.
THEY CAME TO THE CAPITOL MAKING THE ARGUMENT THAT THEY SHOULDN'T HAVE TO PAY BOTH SERVICES ANYMORE.
AND THEY WERE SUCCESSFUL IN GETTING THAT PASSED.
THE IMPACT TO US, UH, IS ESTIMATED TO BE $7.3 MILLION TO OUR GENERAL FUND.
AND UNLIKE THE PROPERTY TAX, WHICH WILL BE A FORWARD-LOOKING IMPACT, EXCUSE ME, THIS WILL TAKE EFFECT IMMEDIATELY WITH THE START OF THE NEXT FISCAL YEAR.
THOSE, UH, THAT WE WILL SEE A, A REDUCTION IN REVENUE FROM OUR FRANCHISE FEES OF ABOUT SEVEN AND A HALF MILLION DOLLARS.
WE ANTICIPATE, UH, LITIGATION FROM CITIES AFTER THE SESSION.
THERE'S A CONSTITUTIONAL CLAUSE THAT SAYS, WE ARE PROHIBITED FROM GIVING AWAY PUBLIC PROPERTY WITHOUT FAIR COMPENSATION FOR IT.
UH, AND THERE'S ALREADY A PENDING LAWSUIT FROM THE LEGISLATION, THE SESSION BEFORE, OVER THE SMALL CELL TECHNOLOGY THAT WE ANTICIPATE WILL BE AMENDED TO BRING THIS, UH, PIECE INTO THAT.
ALSO, UNDER THE LOCAL DECISION MAKING, OF COURSE, WE'RE, UH, AT LEAST FOUR BILLS THAT WOULD'VE INTERFERED WITH OUR ALAMO MASTER PLAN PER, UH, SPECIFICALLY THE PLANS TO MOVE THE TAF 500 FEET, UH, TO A MORE PROMINENT LOCATION IN THE PLAZA.
ALL FOUR OF THOSE BILLS WERE NOT SUCCESSFUL.
COUPLE OF THEM WE AMENDED TO, UH, SO AS TO NOT HARM THE PLAN A FEW OTHERS WOULD HAVE.
AND, UH, AND WE WERE SUCCESSFUL IN STOPPING THEM.
SENATOR MENENDEZ WAS AMONG, UH, MANY WHO FOUGHT VERY VALIANTLY, UH, TO DEFEND THE PLAN THAT HAD GONE THROUGH SUCH EXTENSIVE PUBLIC OUTREACH ALREADY.
AND THEN HERE'S JUST THE BEGINNING OF THE LONG LIST OF OTHER BILLS THAT DIED, THAT, THAT WOULD'VE HURT LOCAL DECISION MAKING A BILL TO PROHIBIT ANY TAXPAYER EXPENDITURE ON LOBBYING AT THE CAPITOL TO MAKE US GO UP THERE AND, AND BE THE, UH, THE ONLY ONES WITHOUT, WITHOUT RESOURCES TO FIGHT THE GOOD FIGHT, UH, BILLS THAT WOULD'VE TAKEN AWAY OUR E T J AUTHORITY BILLS THAT WOULD'VE PREEMPTED THE SHORT-TERM RENTALS ORDINANCE.
THERE WAS A SUPER PREEMPTION BILL THAT WOULD'VE DONE AWAY WITH ANY ORDINANCES THAT THE STATE DOESN'T BLESS BILLS THAT WOULD'VE PREEMPTED OUR TREE ORDINANCE, OUR EMINENT DOMAIN AUTHORITY.
WE RESOLVED AN ISSUE WITH THE COUNTY OVER, UH, FIR AND FOOD INSPECTIONS IN, IN, UH, COUNTY FACILITIES.
AND THERE ARE A WHOLE BUNCH OF BILLS RELATED TO ELECTION LANGUAGE AND
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DEBT.UM, SOME THINGS, FOR EXAMPLE, REQUIRING A SUPER MAJORITY TO PASS BOND PROGRAMS INSTEAD OF A SIMPLE 51%, UH, OTHER BILLS THAT WOULD'VE ADDED, UH, LANGUAGE TO THE BALLOT, THAT WOULD'VE MADE IT VERY PROBLEMATIC.
AND, AND ALL OF THOSE BILLS WERE UNSUCCESSFUL.
THERE ARE A FEW FEW THAT PASSED THAT WERE NOT PROBLEMATIC.
THEY REQUIRE THINGS THAT WE ALREADY DO, LIKE PRODUCE A, UH, VOTER INFORMATION GUIDE AND GROUP OUR PROJECTS IN SPECIFIC CATEGORIES THE WAY WE DO ON OUR BALLOTS.
THERE IS A BILL THAT, UM, IMPROVES THE WORKERS' COMP STATUTE.
THE, UH, THERE ARE CERTAIN CANCERS THAT ARE PRESUMED TO BE WORK RELATED FOR FIREFIGHTERS, BUT THERE'S BEEN, UH, LITIGATION IN OTHER CITIES, NOT IN OURS, UH, OVER WHAT, WHAT THAT STATUTE MEANS.
UH, THE STATEWIDE FIRE ASSOCIATION BROUGHT A BILL FORWARD TO PUT THE SPECIFIC CANCERS IN STATUTE TO END THE DEBATE OVER THAT.
AND IN THE PROCESS, WE WORKED HARD WITH THEM AND NEGOTIATED A NUMBER OF IMPROVEMENTS TO THE PROCESS THAT WE THINK ARE BETTER FOR, FOR ALL PARTIES.
FOR EXAMPLE, CURRENTLY WHEN WE GET A WORKERS' COMP CLAIM FROM A FIREFIGHTER FOR CANCER, WE HAVE TO RESPOND YAY OR NAY WITHIN 15 DAYS.
AND IT'S IMPOSSIBLE TO REVIEW MEDICAL RECORDS AND MAKE A DETERMINATION IN THAT PERIOD OF TIME.
AND IT JUST CREATES A, A DIFFICULT SITUATION WHEN YOU DISAPPROVE SOMETHING RIGHT OUT OF THE GATE.
SO, UM, SO WE'VE WORKED A NEW LANGUAGE IN THERE THAT ALLOWS US TO PROVIDE NOTICE AND A REQUEST FOR THE INFORMATION THAT WE'RE GONNA NEED TO BE ABLE TO REVIEW THE CASE AND SO FORTH.
SO IN THE END, IT WAS AN AGREED TO, UH, PIECE OF LEGISLATION WITH US IN THE STATEWIDE FIRE UNION, AND I THINK ALL, ALL WALKED AWAY HAPPY.
THERE WERE A WHOLE HOST OF BILLS RELATED TO OUR BUILDING REGULATIONS AND, AND LAND DEVELOPMENT REGULATIONS.
ONE NOTABLE ONE THAT PASSED, UH, PROHIBITS CITIES FROM REGULATING THE TYPE OF BUILDING MATERIALS USED.
IN OTHER WORDS, YOU CAN'T SAY YOU MUST USE, UH, BRICK IN THIS AREA, OR YOU CANNOT USE SIDING IN THIS AREA.
WE WORKED HARD WITH THE PROPONENTS OF THE BILL TO ADJUST THE LANGUAGE, AND WERE SUCCESSFUL IN EXEMPTING OUR HISTORIC DISTRICTS, OUR WORLD HERITAGE BUFFER AREAS, OUR ALAMO, OUR RIVER OVERLAYS, OUR DOWNTOWN DESIGN GUIDE, AND OUR DARK SKIES ORDINANCE.
UH, SO, UH, LARGELY SUCCESSFUL IN, IN MITIGATING THE PROBLEMS THAT WE HAVE.
HOWEVER, WHAT THAT DOES MEAN IS THAT OUTSIDE OF THOSE SPECIALLY ZONED AND DESIGNATED AREAS, WE WOULDN'T BE ABLE TO REQUIRE A CERTAIN TYPE OF MATERIAL AND FUTURE CONSTRUCTION.
UH, THERE WAS A PREEMPTION BILL THAT WOULD'VE TAKEN US OUT OF THE BUSINESS OF, OF LICENSING OR REQUIRING ANYTHING OF THOSE WHO ARE LICENSED BY THE STATE THAT FAILED, AS DID A SCOOTER, UH, STATEWIDE REGULATION, AS DID A, A SOLID WASTE PREEMPTION OF, OF OUR LOCAL FEES.
UH, AND THEN FINALLY, THERE'S A BILL RELATED TO ESDS THAT SAID, IF WE ANNEX AN AREA WE OWE NOT JUST THE PROPERTY TAX, UH, FOR THAT TAX TAX BASE TO THAT E S D, BUT ALSO SALES TAX, UH, WHICH WOULD'VE UNDERCUT AGREEMENTS THAT HAVE BEEN AGREED TO MANY YEARS AGO BETWEEN THE CITY AND ESDS IN BEXAR COUNTY.
AND SO WE WERE ABLE TO GET AN EXEMPTION IN THERE THAT ESSENTIALLY GRANDFATHERED THOSE, UH, PREVIOUS, UH, AGREEMENTS, UH, CONTINUING ON OUR PRIORITIES WITH SUPPORT FOR MILITARY CITY U SS A THIS WAS VERY SUCCESSFUL ACROSS THE BOARD, $30 MILLION PUT INTO THE STATEWIDE, UH, GRANT PROGRAM DAG UH, SNAPPER AND, AND HIS TEAM OUTSIDE OF THEIR WORK FOR THE CITY ALSO REPRESENT A COALITION OF MILITARY CITIES ACROSS THE STATE, AND WORKED VERY HARD ON IT.
IT, THAT NUMBER WAS 20 MILLION LAST YEAR.
SO THAT'S, UH, BEEN AN INCREASE.
AND, UH, THE PORT ALSO WORKED VERY HARD ON THAT.
THE PORT ALSO PUSHED, UH, SOME CHANGES TO A REVOLVING LOAN FUND THAT HAS BEEN LARGELY UNUSED, UH, BECAUSE IT, IT, THERE'S BEEN MORE COMPETITIVE LOANS TO BE HAD IN THE PRIVATE MARKET THAN THROUGH WHAT THE STATE OFFERED.
AND SO, THROUGH SOME TWEAKS TO THAT, UH, WE EXPECT THAT PROGRAM TO BE BETTER, TO BORROW MONEY, MAKE IMPROVEMENTS FOR OUR BASES, AND THEN HAVE THEM BE PAID BACK OVER TIME.
UH, WE STATED FROM THE BEGINNING THAT WE'RE OPPOSED TO ANY LEGISLATION THAT THREATENS OUR MISSIONS, PARTICULARLY AS IT RELATES TO DEVELOPMENT AROUND THEM.
AND A BILL THAT WOULD'VE BASICALLY UNDONE OUR ABILITY TO ENFORCE THE PROTECTIONS THAT WERE PUT IN PLACE AROUND CAMP BULLIS AND LACKLAND THROUGH THE ELECTION LAST NOVEMBER, UH, WE WERE FINALLY LATE IN THE SESSION, ABLE TO AMEND ON THE HOUSE SIDE SO THAT IT PRE EXEMPTED OUR AREAS.
AND THEN IN THE END, UH, THE BILL DIED ANYWAY, OTHER, OTHER COMMUNITIES FOUGHT IT, AND, AND IT DIED.
I'LL MOVE A LITTLE FASTER HERE.
UH, OUR NEXT PRIORITY WAS KEEPING SAN ANTONIO, UH, COMPETITIVE FROM AN ECONOMIC STANDPOINT.
A BILL PASSED THAT, UH, ALLOWS THAT, IT CONTINUES THE SUNSET OF THE STATE LAW THAT ALLOWS US TO USE STATE SALES AND HOT TAXES TO DO PROJECTS AROUND THE CONVENTION CENTER THAT SUPPORT THE CONVENTION CENTER.
THAT WAS TO BE SUNSETTED LATER THIS YEAR.
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AND IT WAS EXTENDED AND WE'RE ABLE TO CONTINUE WITH THE PROGRAMS THAT WE'RE WORKING ON.150 MILLION IN TOTAL IS IN THE TEXAS ENTERPRISE FUND.
THAT'S THE STATE'S PIECE OF ECONOMIC DEVELOPMENT INCENTIVES.
UH, 50 MILLION WAS PUT INTO, UH, FILM INCENTIVES FOR THE STATE, WHICH OUR ARTS AND CULTURE DEPARTMENT ARE REALLY EXCITED ABOUT.
AND, UH, OF COURSE, NO BATHROOM BILL THAT REALLY DIDN'T COME UP THIS SESSION.
WHILE THAT WAS SUCH A BIG, UH, FOCUS LAST SESSION, UH, ALSO THE LOCAL PROPERTY TAX ABATEMENTS THAT WE, UH, OFFER AS PART OF ECONOMIC DEVELOPMENT DEALS ARE IN STATE LAW.
AND THAT CHAPTER THREE 12 WAS SET TO EXPIRE, UH, LATER THIS YEAR THAT WAS EXTENDED.
IT DOES HAVE A NEW REQUIREMENT THAT ANY DEAL THAT WE BRING TO COUNCIL, UH, RELATED TO AN ECONOMIC DEVELOPMENT PROJECT OR TAX ABATEMENT WOULD HAVE TO BE POSTED 30 DAYS IN ADVANCE.
THERE'S SOME CONCERN ABOUT THAT MAKING US, UH, UNCOMPETITIVE WITH OTHER STATES AROUND THE COUNTRY WHO MIGHT SEE A DEAL THAT'S BEING MADE HERE AND TRY TO UNDERCUT IT.
BUT NONETHELESS, IT WAS PART OF THE NEGOTIATION THAT WAS NECESSARY TO GET THE EXTENT THE, UH, ABATEMENTS EXTENDED AND THEN NO CHANGES TO THE MAJOR EVENTS TRUST FUND.
OF NOTE, ON THE TRANSPORTATION FRONT, WE SUPPORTED ANYTHING THAT WOULD ALLOW LOCAL OFFICIALS TO CONSIDER ADDITIONAL FUNDING OPTIONS.
REPRESENTATIVE MEAN HOTTEST FILED TWO VERY, UH, GOOD BILLS RELATED TO AN OPTIONAL COUNTY REGISTRATION VEHICLE REGISTRATION FEE, AND A POSSIBILITY OF INCREASING THE SALES TAX TO SUPPORT THE A T D.
SHE WAS ABLE TO MOVE BOTH THROUGH THE TRANSPORTATION COMMITTEE AND THE A T D BILL, UH, WHICH WAS A VIA BILL, UH, ALL THE WAY TO THE HOUSE FLOOR, UH, BEFORE IT RAN INTO SOME TROUBLE THERE.
AND SHE ULTIMATELY TABLED IT FOR A FUTURE DISCUSSION.
SO I THINK VIC WILL BE THE FIRST ONE TO TELL YOU THAT THESE SORTS OF THINGS TAKE MULTIPLE SESSIONS.
UH, HER HAVING MOVED IT ALMOST ENTIRELY THROUGH THE HOUSE, UH, REALLY STARTED AN IMPORTANT CONVERSATION THAT WE HOPE WILL BE CONTINUED NEXT YEAR, ESPECIALLY AS WE LOOK FOR, FOR FUNDING NEEDS FOR CONNECT SA AND OUR, OUR LONG-TERM GROWTH HERE.
AND THEN, UH, SAMCO FOUGHT VERY HARD TO EXTEND PROP ONE THAT WAS THE STATEWIDE, UH, VOTER APPROVED FUNDING SOURCE FOR TXDOT.
IT WAS SET TO EXPIRE IN 2024 THAT HAS NOW BEEN EXTENDED TO 2034.
SO IT'S A LONG-TERM FUNDING SOURCE FOR THE STATE OF TEXAS.
OUR ONLY INITIATIVE UNDER THAT CATEGORY WAS A BITE STICKS BILL, WHICH IS ESSENTIALLY A, UH, ALLOWING OUR CODE ENFORCEMENT OFFICERS TO CARRY A, A DEVICE THAT CAN BE USED AS A DETERRENT TO A DOG ATTACK WHEN THEY'RE INSPECTING PROPERTIES.
UH, REPRESENTATIVE CORTEZ CARRIED THAT BILL AND SENATOR MENENDEZ, AND THEY WERE ABLE TO PASS THAT FOR US.
I'LL GO THROUGH A WHOLE HOST OF OTHER THINGS OF INTEREST.
UH, TOBACCO 21 HAS BECOME THE MODEL FOR THE STATE THAT BILL IS HEADED TO THE GOVERNOR, THAT THE SMOKING AGE WILL BE 21.
IT IS, UH, GOING TO BE A STATEWIDE OFFENSE NOW TO COMMIT MALE THEFT.
UH, AN ISSUE THAT THE POLICE CHIEF AND THIS COUNCIL HAVE TALKED ABOUT, GJ SUTTON, WHICH SOME OF YOU HAVE BEEN ON THE COUNCIL FOR A WHILE, MAY REMEMBER, IS A EAST SIDE STATE OFFICE BUILDING THAT WENT VACANT SOME YEARS AGO BECAUSE OF PROBLEMS WITH THE STRUCTURE.
UH, WE HAD GOTTEN MONEY IN THE BUDGET IN THE STATE BUDGET TWO SESSIONS AGO TO HAVE IT REBUILT, AND IT WAS VETOED BY THE GOVERNOR.
AND SINCE THEN, NOTHING'S HAPPENED.
AND SO REPRESENTATIVE GERVIN HAWKINS, UH, GOT A BILL THROUGH THAT ALLOWS THE STATE TO SELL THAT PROPERTY SO THAT IT CAN BE REDEVELOPED AND, AND PUT INTO PRODUCTIVE USE.
OUR AIRPORT WAS SUPPORTIVE OF A BILL THAT, UH, PROTECTS SAFETY.
IT, IT PROHIBITS GUNS IN SECURED AREAS OF THE AIRPORT.
UH, THERE'S A PARKS FUNDING BILL THAT ENSURES THAT THE SALES TAX THAT WAS INTENDED TO BE FOR PARKS GOES TO, ITS, IS DEDICATED TO ITS INTENDED PURPOSE.
UH, AND THEN I'LL JUST MOVE OVER TO THE OTHER SIDE.
TUITION, REVENUE BONDS FOR CAPITAL PROJECTS AT OUR UNIVERSITIES WAS NOT SUCCESSFUL.
SOME REFORMS TO OUR LOCAL FIRE AND POLICE PENSION FUND WERE NOT SUCCESSFUL.
A PRIMA FASCIA LOWERING OF THE STATEWIDE DEFAULT SPEED LIMIT, UH, IT WAS NOT SUCCESSFUL.
YOU ALL KNOW THE PAID SICK LEAVE PREEMPTION FAILED, UH, AND A BILL THAT WOULD'VE, UH, PROHIBITED TETHERING OF ANIMALS SIMILAR TO OUR LOCAL ORDINANCE THAT WOULD'VE MADE IT STATEWIDE, FAILED ON A POINT OF ORDER ON THE HOUSE FLOOR.
OUR PARTNERS HAD SOME GREAT SUCCESSES AS WELL.
C P S ENERGY HAS ADDED THEIR UTILITY WORKERS TO THE UTILITY WORKER SAFETY STATUTE.
IN OTHER WORDS, WHEN YOU PASS A C P SS OR A SAWS WORKER ON THE SIDE OF THE ROAD, YOU HAVE TO SLOW DOWN AND PROVIDE SAFE PASSAGE FOR THEM.
UH, THE BROOKS FOUGHT VERY HARD FOR STATE FUNDING FOR A NEW STATE MENTAL HEALTH HOSPITAL.
AND, UH, SENATOR FLORES, UH, WAS THE CHAMPION FOR THAT BILL.
AND THERE ARE IS $200 MILLION IN THE BUDGET TO ALLOW FOR A NEW STATE HOSPITAL, UH, RIGHT NEAR BROOKS.
UH, SAWS WAS SUCCESSFUL IN GETTING, UH, SOME REFORMS TO GROUNDWATER DISTRICTS THAT ALIGN TRANSFER PERMITS WITH PRODUCTION PERMITS
[00:25:01]
SO THAT THERE'S A RELIABLE SOURCE OF WATER WHEN TRANSFERRED INTO THE REGION.THERE WAS A THREAT TO TOURISM FUNDING, UNUSED HOT FUNDING THAT VISIT SAN ANTONIO ENGAGED ON, AND THAT WAS DEFEATED.
SO THAT MARKETING DOLLAR, THAT MARKETING FUND REMAINS, THERE'S AN AIR QUALITY, UH, FUNDING PROGRAM FOR NEAR NON-ATTAINMENT COMMUNITIES THAT HAS BEEN IN PLACE FOR YEARS, ALTHOUGH THE GOVERNOR VETOED IT LAST SESSION.
UH, WE ARE NOW IN A, IN, UH, NON-ATTAINMENT, SO WE'RE NOT ELIGIBLE FOR THAT SOURCE OF FUNDS.
BUT ACOG WORKED TO MAKE SURE THAT THE SEVEN SURROUNDING COUNTIES COULD STILL ACCESS THOSE DOLLARS.
UH, SARAH FOUGHT HARD FOR A STATE FUNDING PLAN AND AN INFRASTRUCTURE FUND, ABOUT 3 BILLION FROM THE RAINY DAY FUND BEING DIVERTED TO A FLOODING INFRASTRUCTURE FUND STATEWIDE.
AND THEN ON THE HIGHER ED FRONT, THE FORMULA FUNDING WAS INCREASED ACROSS THE BOARD.
UH, U T S A, FOR EXAMPLE, IS, UH, GONNA GET A 13.5% INCREASE IN STATE FUNDING, ABOUT $26 BILLION, ALBERT, UH, OVER THE NEXT BIENNIUM AS A RESULT OF THAT.
SO A LOT OF GOOD THINGS, UH, FOR OUR COMMUNITY PARTNERS.
IN SUMMARY, UH, SENATE BILL TWO, THE PROPERTY TAX BILL AND SENATE BILL 1152, THE FRANCHISE FEES FOR, UH, TELECOMS, UH, BOTH PASSED AND WILL HAVE A SUBSTANTIAL FISCAL EFFECT ON THE CITY.
MOST OF THE PREEMPTION BILLS THAT WE FACED, UH, WERE EITHER FIXED THROUGH LANGUAGE OR DEFEATED.
AND OVERALL, WHEN WE LOOKED DOWN AT THE LIST OF LEGISLATION THAT WE ACTIVELY ENGAGED ON, EITHER THROUGH TESTIMONY, THROUGH LOBBYING EFFORTS, THROUGH WRITTEN EFFORTS, UH, WE WALKED AWAY WITH AN A ROUGHLY 83% SUCCESS RATE THIS SESSION.
SO, UH, ALL TOLD WE'RE, WE'RE PLEASED THAT IT'S OVER.
AND WITH THAT, UH, WE WILL ANSWER QUESTIONS.
THANK YOU VERY MUCH, JEFF, UH, FOR THE GREAT WORK.
UH, YOU AND YOUR TEAM, UH, MEGAN, CHRISTINE, EDUARDO, UH, ALL THE GOOD STUFF THAT HAPPENED UP THERE, UH, UNDER DIFFICULT CIRCUMSTANCES FOR SURE.
I DO WANNA ALSO THANK OUR DELEGATION RAY, UH, ALONG WITH HIS COLLEAGUES AND OUR AGENCIES THAT HAVE BEEN UP THERE, UH, VIC SAMCO, UH, VIA BEXAR COUNTY C P S, SO MANY OTHERS TO, TO, UH, THANK FOR THEIR COOPERATION.
I DO HAVE TO SAY THOUGH, UH, TWO YEARS AGO, THE EASIEST APPOINTMENT I EVER MADE, UM, WAS TO APPOINT COUNCILMAN SALANA AS CHAIR OF OUR INTERGOVERNMENT RELATIONS EFFORT.
THERE WASN'T, UH, PROBABLY THE, THE BEST PREPARED CHAIRMAN, I THINK IN CIRCUMSTANCES LIKE THIS WHEN THERE'S A LOT OF, UH, KNOWNS.
I MEAN, WE KNEW KIND OF WHAT WE WERE UP AGAINST IN TERMS OF THEIR PRIORITIES WITH REGARD TO PROPERTY TAXES.
THERE WERE A LOT OF UNKNOWNS, OBVIOUSLY, WITH CHANGING PERSONNEL.
A NEW SPEAKER, UH, AND COUNCILMAN SALANA, UH, HANDLED ALL THAT IN STRIDE AND DID VERY, VERY WELL, I THINK AN 83% SUCCESS RATE.
WE DON'T KNOW THE METRICS INVOLVED IN THAT, BUT CERTAINLY WE WALKED AWAY, UH, IN, IN FAIRLY GOOD SHAPE, ALL, ALL TOLD.
SO THANK YOU VERY MUCH FOR YOUR GREAT WORK, RAY.
UM, AND I'LL, I'LL ASK HIM TO GO INTO DEPTH.
I JUST WANTED TO MENTION A FEW THINGS, THOUGH.
UH, YOU, YOU'VE HIGHLIGHTED SOME OF THE, THE MAJOR OUTCOMES.
UM, BUT I WILL SAY THAT IT WAS HISTORIC IN THE SENSE THAT WE FINALLY TURNED THE TIDE ON SCHOOL FINANCE REFORM.
AND I THINK IT WAS IN NO SMALL PART DUE TO THE FACT THAT THIS CITY, UH, FOR THE FIRST TIME IN MY MEMORY, TREATED ITS PUBLIC SCHOOL SYSTEM AS A MEMBER OF ITS DELEGATION.
I THINK YOU MIGHT REMEMBER A LOT OF FOLKS MIGHT REMEMBER IN THIS ROOM, UH, A YEAR AND A HALF AGO AGO OR SO, WE CONVENED ALL THE SUPERINTENDENTS TO TALK ABOUT OUR LEGISLATIVE PRIORITIES IN GENERAL.
AND WE KNEW THAT THERE WAS GOING TO BE PROPERTY TAX, UH, DISCUSSIONS, MULTIPLE BILLS BEING FILED.
UH, BUT WE MAINTAINED THE COURSE AND I THINK CONVENED OTHER CITIES AROUND THE NOTION THAT IF WE'RE ACTUALLY GONNA GET PROPERTY TAX RELIEF FOR TEXAS PROPERTY OWNERS, IT WOULD HAVE TO COME IN THE FORM OF SCHOOL FINANCE REFORM.
AND I'M HAPPY TO SAY ONE OF OUR VERY OWN FORMER COLLEAGUES, DIEGO BERNAL, PLAYED A HUGE ROLE IN THAT.
AND THE FACT THAT, UH, STATE PROPORTION OF FUNDING IS GOING UP FROM 38% TO 45% IN ONE YEAR IS A HUGE STEP FORWARD.
AND, AND SO THANK YOU, UH, TO COUNCILMAN AL, UH, REPRESENTATIVE AL, UH, TO RAY TO OUR SCHOOL SYSTEMS, OUR SCHOOL DISTRICTS HERE IN SAN ANTONIO, FROM PLAYING A HUGE ROLE IN THAT.
I DON'T THINK WE CAN UNDERESTIMATE THE IMPACT THAT THAT'S GONNA HAVE.
AND IF THAT'S A CONTINUED EFFORT INTO THE NEXT COUPLE OF SESSIONS, THEN WE MIGHT BE ACTUALLY TURNING THE CORNER ON BETTER SCHOOL OUTCOMES IN TEXAS, WHICH WOULD BE A GOOD THING FOR EVERYONE.
SO, UM, I JUST HAVE TWO QUICK QUESTIONS AND THEN I'LL TURN IT OVER TO OUR CHAIRMAN.
UH, IT ALSO IS NOTABLE THAT DR.
BRIDGER AND HER TEAM PLAYED A, A SIGNIFICANT ROLE IN THE FORMATION OF OUR AGENDA AS WELL.
AND I'M PROUD TO SAY THAT WE LED THE CHARGE HERE IN THE CITY WITH THE ADOPTION OF TOBACCO 21, BUT ALSO
[00:30:01]
NOW, UM, PROBABLY SHOCKINGLY SO SUCCESSFUL AT THE STATE LEVEL THAT IT'S NOW ON THE GOVERNOR'S DESK.WHAT'S YOUR PROGNOSIS FOR THAT BUILDING SIDE? THUMBS UP.
UH, THE LAST ONE, OR THE SECOND QUESTION I HAD, JEFF, IS, UH, THE LEGAL ISSUES REGARDING THE RIGHT OF WAY, RIGHT? UH, IF THERE WERE NONE, IF WE'RE MOVING FORWARD AND THERE'S NO, UH, LEGAL, UM, QUESTION THAT ARISES, WE'RE TAKING AN $8 MILLION HAIRCUT IN THE F Y 20 BUDGET, RIGHT? YES.
SO WHAT'S GOING ON LEGALLY WITH REGARD TO THAT BILL? WHAT'S OUR ROLE IN IT? UM, HAS SOMEONE ALREADY FILED WHAT'S GONNA HAPPEN? UM, THERE'S BEEN A LOT OF DISCUSSION IN TERMS OF, UH, CITIES, UH, EITHER JOINTLY OR INDIVIDUALLY, UH, CHALLENGING THE, THAT MAYOR, UH, FROM A LEGAL STANDPOINT, UH, WE'RE MONITORING THAT AND WE'LL PROBABLY HAVE A RECOMMENDATION TO COUNSEL PRETTY SOON.
UM, BUT MOVING FORWARD, ERIC, INTO THE BUDGET, UH, SESSION FOR 20, ARE WE PREPARING, UH, TO BACK OUT THAT REVENUE? YES, SIR.
AND YOU'LL RECALL WHEN WE DID THE FINANCIAL FORECAST HERE SEVERAL WEEKS AGO, WE ASSUMED THAT THAT BILL WOULD MAKE IT THROUGH.
SO WE'VE MADE THOSE ADJUSTMENTS IN THE FORECAST, BUT IT IS A SIGNIFICANT HIT.
WELL, UM, CONGRATULATIONS EVERYBODY.
IT COULD HAVE BEEN A WHOLE LOT WORSE,
BUT, UH, REALLY THOUGH, UH, THANK YOU RAY, UH, IN YOUR LAST YEAR AT COUNCIL, I THINK DID HUGE WORK, UH, TO MAKE SURE IT WAS A SUCCESSFUL SESSION FOR US.
SO, UH, THE FLOOR IS YOURS, CHAIRMAN.
AND I THINK IT'S, IT'S, IT'S REALLY, UM, UH, UM, I THINK, I THINK YOU'RE OVERSELLING THE AMOUNT OF, UH, OF, OF, OF CREDIT THAT I SHOULD GET WITH RESPECT TO, UH, WHAT HAPPENED IN, IN, IN WITH ANYTHING THAT WAS WEARING THE SAN ANTONIO TAG.
UH, YOU KNOW, JEFF AND HIS TEAM OF WHICH, UH, INCLUDES SOME OF THE FOLKS WHO WE'VE HIRED ON AS THE LOBBYIST WHO WOULD CARRY THE WATER FOR A LOT OF ISSUES THAT WE HAVE, UH, HERE IN SAN ANTONIO ARE, ARE HERE WITH US AS WELL.
UH, BUT CHRISTINE AND MEGAN AND JEFF, UH, REALLY ARE, ARE THE TIP OF THE SPEAR.
AND TO JUST BE THANKFUL TO GOD THAT WE ONLY HAVE TO DEAL WITH THIS ONCE EVERY TWO YEARS.
YOU HAVE TO BE AN EXPERT IN A NUMBER OF DIFFERENT ISSUES, TRACKING WHAT, 1600 BILLS JUST FOR OUR CITY.
AND I WANT TO MAYBE TAKE A MOMENT TO ASK ABOUT, UH, ONE OF THEM AS IS HUMAN NATURE.
YOU REMEMBER YOUR LOSSES MORE THAN YOU DO YOUR, YOUR VICTORIES.
SO I THINK IT'S, UH, IMPORTANT FOR US TO TRY TO TRY TO DISSECT OR JUST HAVE A CONVERSATION, JEFF.
AND IF YOU NEED TO BRING IN HELP TO, TO, TO ANSWER THIS IS THE QUESTION ABOUT SSB 1152, WHICH IS THE, THE UTILITIES.
AND IN MY MIND, IT, IT SPEAKS TO THE WORST KIND OF, UH, OF POLITICS THAT FOLKS TYPICALLY THINK ARE, ARE THE WAY THAT WE TELL THE STORY AROUND BIG, BIG MONEY, MULTI-BILLION DOLLAR BUSINESS INDUSTRY WITH ENOUGH MONEY TO PAY FOR EVERY LOBBYIST IN TOWN TO GET THEIR WAY DID SO.
AND SSB 1152 IS PROBABLY THE BEST EXAMPLE OF THAT, WHERE THEY'RE ESSENTIALLY IN JUST SAN ANTONIO'S CASE, YOU KNOW, TAKING A STRAW TO OUR REVENUE AND SUCKING OUT $8 MILLION THAT OTHERWISE COULD GO TO JUST AN EXAMPLE.
YOU KNOW, WE PROBABLY PUT ABOUT, UH, $15 MILLION INTO SIDEWALKS FOR THE ENTIRE CITY.
UH, THIS IS ABOUT $7 MILLION WORTH OF WHAT COULD HAVE GONE INTO SIDEWALKS.
WE'RE GONNA, YOU ALL ARE GONNA DISCUSS THE OPPORTUNITY TO DO A HOMESTEAD EXEMPTION.
UH, THE HOMESTEAD EXEMPTION MIGHT COST A CITY, UH, AT WHATEVER RATE, BUT LET'S JUST PICK ONE.
I THINK ONE WAS LIKE THE 1 CENT OR 1%, I CAN'T REMEMBER, THAT ACCUMULATED TO $5 MILLION THAT WE WOULD'VE TO FIND SOMEWHERE.
UM, THIS IS THE UTILITIES WITH A LOT OF BIG MONEY COMING IN AND JUST TAKING THAT REVENUE FROM THE CITY.
AND WE'RE NOT EVEN THE BIGGEST HURT BY THIS.
IT'S HOUSTON THAT'S LOSING 25 MILLION, RIGHT? THIS IS THE QUESTION OF CABLE COMPANIES SAYING, YEAH, YEP, YOU HAVE CHARGES FOR PUBLIC RIGHT OF WAY.
WE DON'T WANNA DO THAT ANYMORE, SO WE'RE GONNA WIN THE ARGUMENT AND PAY FOR IT UP IN, IN AUSTIN.
SO THE QUESTION I HAVE IS, I DON'T, I DON'T REMEMBER HAVING CONVERSATIONS ABOUT THAT AS A THREAT EARLY IN THE, IN THE SEASON.
AND SO IT SEEMS LIKE WE MIGHT'VE GOTTEN PLAYED BY THE TIMING OF THIS.
'CAUSE WE JUST DIDN'T SEEM TO HAVE A LOT OF PREPARATION FOR IT.
AND WE WERE SCUTTLING A LITTLE BIT AT THE END, UM, ON PURPOSE, I'M SURE FROM, FROM WHAT WE WERE COMPETING AGAINST.
BUT WHAT, WHAT DID WE LEARN? HOW, HOW DID WE, HOW DID WE MISS THAT? IS IS JUST A QUESTION OF SURE.
TRACKING SO MANY BILLS AND THIS JUST BEING SNUCK UP ON US.
WELL, I'M GONNA ASK SNAPPER TO COME UP WHO REALLY HAS BEEN WORKING ON THESE RIGHT OF WAY ISSUES SINCE 2005 OR BEFORE EVEN.
UM, BUT LET ME ANSWER THAT DIRECTLY ON THAT PIECE.
UM, EVERY OTHER, UH, MAJOR REFORM TO RIGHT OF WAY LAW IN TEXAS HAS BEEN DISCUSSED OVER A PERIOD OF TIME NEGOTIATED BETWEEN STAKEHOLDERS.
USUALLY SOME AGREEMENT REACHED IN THE INTERIM AND THEN A BILL BROUGHT TOGETHER COLLECTIVELY.
THERE WAS NO DIALOGUE ABOUT THIS LEADING UP TO THE SESSION.
[00:35:01]
COMPANIES THAT THIS WAS A PROBLEM OR THAT THIS WAS COMING.I PERSONALLY, I'M SHARING MY OPINION HERE, BELIEVE IT WAS AN, A MATTER OF A SESSION WHERE CITIES WERE DOWN AND, AND FOLKS KNEW IT.
AND, AND A BILL WAS BROUGHT FORWARD THAT, UM, RIGHT WHEN IT WAS FILED, WE KNEW WHAT THE IMPACT WAS, BUT STOPPING IT, AND AS YOU MENTIONED, THE WELL OVER A HUNDRED LOBBYISTS PUSHING IT, UH, WAS A WHOLE OTHER MATTER.
AND SO I'LL PAUSE FOR A MINUTE.
I'M ONE OF THE CONSULTANTS FOR THE CITY, AND, AND HE WAS KIND BY WAY OF BACKGROUND.
I'VE BEEN WORKING ON MUNICIPAL RIGHT OF WAY ISSUES AND ALL THESE SYSTEMS SINCE 1995 AND HELP NEGOTIATE ALL OF THE CURRENT SYSTEMS ON BEHALF, UH, OF THE TEXAS MUNICIPAL LEAGUE AND, AND OTHER MUNICIPALITIES BEGINNING WE'LL BACK UP REAL QUICK TO, TO, NOT THIS SESSION, BUT THE SESSION BEFORE LAST WAS SENATE BILL 10 0 4, AND THAT WAS A BILL LED BY THE TELECOM INDUSTRY PRIMARILY.
AND IT WAS THE FIRST TIME THAT CITIES, UH, WERE DEFEATED, UH, THAT TO JEFF'S POINT THAT WE DIDN'T HAVE AN AGREED TO BILL WITH INDUSTRY, UH, WHERE WE, UH, HAD A SYSTEM THAT SAID, HERE IS WHAT THE TAXPAYERS ARE PAID FOR THE USE OF THEIR PROPERTY.
UH, WHEN A PERSON, AND LET'S ALL BE REAL CANDID AND CLEAR ABOUT THIS, THE USERS OF THE CABLE SYSTEM PAY FOR IT, MUCH LIKE THE USER OF A TOLL ROAD PAYS FOR THE TOLL.
SO THOSE THAT USE THE SERVICES PAY THE TOLL AND THE RENTAL, THE REST OF THE CITIZENS BENEFIT FOR GETTING A PROFIT AS THE CONSTITUTION REQUIRES, UH, THAT, THAT WE DO ON BEHALF OF TAXPAYERS.
UM, YOU'RE VERY CORRECT TO SAY, ALTHOUGH A FEW OF US THAT WERE DEEP IN THE UTILITY DISCUSSIONS WERE CONVINCED THAT SOMETHING WOULD BE PUT FORWARD.
I ACTUALLY THOUGHT THAT IT WOULD BE MORE DEALING WITH YOUR PEG FEES, THE 1% PEG FEE THAT THE CITY GETS, UH, THAT WOULD BE LOOKED AT, NOT SOMETHING AS GRAND AS, AS LITERALLY WIPING OUT, UH, LARGE, LARGE SECTIONS OF, OF RIGHT OF WAY REVENUES THAT HAVE BEEN ON THE BOOKS FOR 20 YEARS.
THE, THESE SYSTEMS AREN'T NEW.
UH, THEY'VE BEEN ON THE BOOKS FOR 20 YEARS.
I THINK THE MAIN THING, IF YOU WERE TO DISSECT IT, TO YOUR POINT, THAT WAS DISAPPOINTING.
ONE, THAT A GREATER DISCUSSION OF THE UNCONSTITUTIONAL ASPECTS OF THIS WERE NOT BROUGHT FORWARD.
UH, THEY WERE ALMOST DISMISSED AND THEY SEEMED TO BE FACIALLY UNCONSTITUTIONAL IN SOME REGARDS.
SECONDLY, UH, IS THAT THIS WAS BILLED AS A BIG BENEFIT TO CONSUMERS THAT YOU AND I AS AS CUSTOMERS, WILL SEE A BIG DECREASE, UNFORTUNATELY, UH, EVEN THOUGH THERE WERE ATTEMPTS TO SIMPLY BECAUSE STATE LAW, UH, FEDERAL LAW PREVENTS CABLE AND TELECOM RATES FROM BEING REGULATED.
THUS THERE WAS NO WAY TO ENSURE THAT ANY REDUCTION THAT WENT AWAY, UH, WAS ACTUALLY PUT INTO THE POCKETS OF THE CONSUMERS AND NOT TO THESE MULTI-BILLION NATIONAL CORPORATIONS LIKE COMCAST AND CHARTER THAT LED THIS EFFORT.
AND SO THERE WERE AMENDMENTS, UH, SOME THAT THIS DELEGATION PUT FORWARD THAT WOULD'VE REQUIRED, UH, REPORTING OF BASE RATES TO THE PUBLIC UTILITY COMMISSION.
SO WE COULD ACTUALLY TRACK WHEN SAN ANTONIO TAKES THIS $8 MILLION HIT IF THE CONSUMER SAW ANYTHING ON THE OTHER SIDE, OR IF THAT JUST WAS A WINDFALL FOR THESE CORPORATIONS THAT WAS DEFEATED HANDILY.
AND, AND TO YOUR POINT, I THINK THE BIGGEST DISAPPOINTMENT THAT WE, AND THAT WORK FOR AND REPRESENT UTILITIES IN, UH, AUSTIN AND AT THE UTILITY COMMISSION IS THAT THE INDUSTRY CHOSE NOT TO COME TO THIS COUNCIL OR TO THE COUNCIL IN HOUSTON WHERE THEY SEND A REPRESENTATIVE EVERY WEEK AS, AS CHARTER, UH, CABLE DOES TO BRING THAT FORWARD, KNOWING THE MASSIVE HIT THAT IT WOULD HAVE TO BUDGETS, UH, AND TO SAY THAT THAT WAS PROBABLY A, YOU KNOW, THEY COME TO AUSTIN AND SAY THEY'RE COMMUNITY PARTNERS.
AND THAT WAS SOMETHING I THINK THAT WE WOULD EXPECT MORE OF OUR PARTNER.
AND, AND SNAPPER, THIS IS NOT A, A ONE-TIME LOSS OF REVENUE.
THIS WILL BE ON AN ANNUAL BASIS THAT IT IS GONNA GO UNREALIZED FOR THE CITY.
AND IF THOSE REVENUES WERE TO GROW, IT WOULD HAVE, HAVE, THEY'RE, THEY'RE TAGGED TO, TO HOW MUCH PROFIT OR REVENUE IS GAINED OFF OF THE USE OF THAT, THAT RIGHT OF WAY.
NOTHING REQUIRES PRIVATE SECTOR COMPANIES TO USE PUBLIC RIGHT OF WAY.
THEY CAN BE FREE TO NEGOTIATE WITH ALL THE PRIVATE LANDOWNERS IN A COMMUNITY TO PLACE THEIR FACILITIES UPON WHICH THEY DO.
AND THEY OFTEN PAY THEM, UH, MUCH GREATER THAN, THAN SOME OF THE FEES THAT THE LOCAL GOVERNMENTS RECEIVE FOR THE SAME TYPES OF LAND.
BY WAY OF FULL BACKGROUND, I AM ONE OF THE ATTORNEYS ON, ON THE SUIT, ON THE 10 0 4 LITIGATION.
WE'LL BE VISITING WITH YOUR LEGAL DEPARTMENT ABOUT OUR EXPECTATIONS.
UH, THAT COALITION HASN'T DECIDED YET, BUT IT IS CERTAINLY LOOKING AND, AND INDICATED, UH, WHEN WE PASSED OUR TRIAL SETTING, WHICH WAS SET FOR MAY 13TH ON THE SENATE BILL 10 0 4 SUIT, UH, WE, IN AGREEMENT WITH THE ATTORNEY GENERAL'S OFFICE PASSED THAT SETTING IN ANTICIPATION OF HAVING TO AMEND THOSE PLEADINGS TO BRING THIS, UH, STATUTE
[00:40:01]
INTO IT.I THINK THOSE ARE THE OTHER QUESTIONS THAT I HAVE.
AND JUST ANOTHER QUICK COMMENT, REALLY, IT, IT'S UPSETTING FOR ME IN TWO, FOR TWO REASONS.
ONE OF WHICH IS THAT I CAN'T GO BACK AND NO MEMBER OF THE DELEGATION CAN GO BACK AND TELL THEIR, UH, RESIDENTS THAT, HEY, YOU KNOW, HERE'S THE ARGUMENT.
THEY FELT LIKE THEY DIDN'T NEED TO PAY, UH, TWICE BECAUSE THEY'RE DOING CABLE AND PHONE.
THESE RESIDENTS WHO ARE PAYING FOR SPECTRUM OR CHARTER ARE NOT GONNA BE ABLE TO CALL UP THEIR CABLE COMPANY AND SAY, HEY, I DON'T THINK I SHOULD PAY FOR BOTH MY CABLE AND MY PHONE BILL.
WHY DON'T WE JUST TAKE A PAGE OUTTA YOUR BOOK AND PAY FOR ONE? AND, AND, AND, AND THE SECOND PIECE OF WHY I'M UPSET ABOUT IT IS BECAUSE, AGAIN, WE'RE TRYING TO PREPARE A LEGISLATIVE AGENDA.
WE'RE GETTING OUR DELEGATION PREPPED TO, TO HAVE THE CITY'S POSITION ON IT.
AND IT FEELS LIKE WE DIDN'T GET, NECESSARILY GET A FAIR SHAKE OR A FAIR FIGHT IN THIS, BECAUSE WHEN WE, I DON'T, I DON'T WANNA GIVE A LOT OF CREDIT TO MY COLLEAGUES WHO ALL CHIMED IN SENT MESSAGES TO OUR DELEGATION.
BUT WHEN YOU, YOUR, YOUR, YOUR WINDOW OF OPPORTUNITY IS SO QUICK AT THE END, THIS SNEAKS UP ON YOU.
YOU KNOW, WHEN WHEN COUNCILMAN VIA IRAN OR, UH, COUNCIL COUNCILMAN PALICE SEND MESSAGES TO OUR DELEGATION, YOU COULD SENSE THAT THERE'S STILL SOME CONFUSION GOING ON BACK AND FORTH, AND WE DIDN'T HAVE UNANIMOUS SUPPORT EVEN AMONGST OUR OWN DELEGATION.
AND I THINK THAT IS FIXED WHEN YOU JUST HAVE A LITTLE MORE TIME, UH, TO EXPLAIN IT TO THE FOLKS WHO ARE REALLY ON OUR SIDE ON THIS.
AND WE CAN EXPLAIN THE LEGITIMATE, THE LEGITIMACY OF NOT HAVING $8 MILLION IN OUR GENERAL FUND.
I MEAN, THAT IS 75 POLICE OFFICERS THAT WE COULD REALIZE ON AN ANNUAL BASIS, UM, OR THAT CAN BE SUSTAINED OVER AN ANNUAL BASIS.
AND SO I THINK, AGAIN, I HATE TO HARP ON IT, BUT I, I, YOU KNOW, YOU, YOU ALWAYS REMEMBER YOUR LOSSES MORE THAN YOU DO YOUR WINS.
AND IT'S JUST TOUGH TO HAVE THAT LOSS BECAUSE, YOU KNOW, IT FEELS LIKE IF WE'RE GONNA DO ANYTHING, WE'LL JUST TAKE A LESSON FROM IT AND, AND, AND MOVE FORWARD TO, TO THE NEXT SESSION KNOWING THAT, UM, FOLKS WITH, YOU KNOW, MULTI-BILLION DOLLAR, UH, BUSINESSES WHO PROFITED, YOU KNOW, FROM THIS, UH, ARE, ARE GONNA DO IT AT THE EXPENSE OF, OF, UH, OF OUR, OUR RESIDENTS, OUR TAXPAYERS, AND OUR, OUR PUBLIC SERVICES.
SO I'M A LITTLE DISAPPOINTED ABOUT THAT.
THE OTHERS, LEMME JUST HIGHLIGHT SOME REALLY IMPORTANT WORK.
AGAIN, TO RE ECHO WHAT THE MAYOR HAS SAID, IT WAS AN INCREDIBLE SESSION FOR, UM, UH, FOR A GREAT DISCUSSION ON PUBLIC EDUCATION.
AND A LOT HAS TO DO WITH, UM, YOU KNOW, THE WORK THAT, UH, REPRESENTATIVE B BERNAL, UH, CHAIRMAN HUBERTY, WHO FOLKS REALLY BUILT OUT OVER THE LAST TWO OR THREE YEARS, THIS CONVERSATION THAT PUBLIC EDUCATION SHOULD BE INCREDIBLY IMPORTANT.
AND IT'S FUNNY BECAUSE YOU GET STRANGE BEDFELLOWS WHEN YOU TALK ABOUT PUBLIC EDUCATION AND, AND WANTING TO REALLY REDUCE PEOPLE'S, UH, PROPERTY TAXES BECAUSE THE TWO GO HAND IN HAND.
AND YOU GOT A LOT OF FOLKS AT THE LEGISLATURE TO SAY, UH, WE DO WANNA SUPPORT INCREASING FUNDING FOR PUBLIC EDUCATION.
AND WE DO, WE THINK AT THE SAME TIME, UH, WE'RE GONNA REDUCE PEOPLE'S LARGEST SHARE OF THEIR PROPERTY TAX AND WE'RE GONNA BUY DOWN THAT TAX COMPRESSION.
BUT I JUST USE THE MOMENT TO SHOUT OUT TO ANOTHER, UH, MEMBER OF THE SAN ANTONIO DELEGATION WHO'S NO LONGER A MEMBER OF THE SAN ANTONIO DELEGATION WHO STARTED THIS CONVERSATION OFF, WHICH WAS SPEAKER STRAUSS.
AND, AND I WANNA MAKE SURE THAT CREDIT IS WHERE CREDIT IS DUE, UH, WITH, UH, REPRESENTATIVE AND SPEAKER STRAUSS FOR HAVING STARTED THAT CONVERSATION.
I THINK WE'RE, WE'RE IN A BETTER PLACE TODAY AND OUR PUBLIC SCHOOLS ARE ALL MAKING SENSE OF THE NEW LEGISLATION.
AND I THINK I'M, I'M, I AM AMONG, AMONG OTHERS ARE REALLY GRATEFUL TO SEE THAT THAT, UM, YOU KNOW, WHICH IS A VERY HEAVY LIFT, UH, GOT PASSED IN THIS SESSION.
AND FINALLY, MAYOR, I KNOW THAT THERE'S SOME OTHER QUESTIONS THAT ARE GONNA GO ON, BUT I'M, I'M REALLY, UM, UH, PROUD OF THE WAY THAT WE HAVE TRIED TO HANDLE A REALLY COMPLICATED AND DIFFICULT ISSUE, WHICH WAS THE, UH, PAID SICK LEAVE ORDINANCE.
UM, THERE WAS THIS SENSE THAT IT WAS, YOU KNOW, DEAD ON ARRIVAL IN AUSTIN.
AND I THINK WHAT CAN HAPPEN WHEN THAT OCCURS IS THAT FOLKS MAY NOT BE NECESSARILY SERIOUS ABOUT THE IMPLEMENTATION OF THAT PROGRAM.
AND SO NOW WE GOT PAST THE SESSION, PAID SICK LEAVE WAS NOT KILLED IN THE LEGISLATURE, AND THERE'S THIS SENSE OF REALITY THAT, YOU KNOW, AUGUST IS THE NEXT, IS THE NEXT DEADLINE THAT WE SET FOR OURSELVES FOR IMPLEMENTATION OF THIS.
AND, AND I'M GRATEFUL THAT, UM, THAT THE COMMITTEE THAT IS CHAIRED BY, UH, COUNCILMAN PALIS IS, IS TRULY THINKING ABOUT WAYS TO MAKE THIS WORK.
BECAUSE AT THE END OF THE DAY, IT MAY NOT BE EXACTLY HOW WE PASSED IT.
UM, AND I WOULD BE HAPPY IF IT WERE IMPLEMENTED IN THE WAY THAT WE PASSED IT, BUT THAT'S NOT THE MARKER FOR SUCCESS.
BECAUSE IF YOU THINK, IF YOU THINK YOU HAVE A GOOD ARGUMENT, THEN MAKE IT PUBLIC, MAKE IT TRANSPARENT, AND MAKE SURE THAT FOLKS WHO DISAGREE WITH YOU HAVE AN OPPORTUNITY TO WEIGH IN.
AND I THINK THAT IT, IT MAY NOT BE EXACTLY WHAT I'D LIKE, BUT I WANT TO HAVE SMALL BUSINESS OWNERS AND BUSINESS OWNERS WEIGH INTO HOW WE TRULY IMPLEMENT AND EXECUTE, UM, A PAID SICK LEAVE ORDINANCE FOR THE CITY OF SAN ANTONIO.
SO THAT AT THE END OF THE DAY, UM, WE'RE NOT SHUTTING DOWN SMALL BUSINESSES.
WE'RE NOT FORCING, UH, UH, BUSINESS IN GENERAL TO HAVE TO CONTRACT, UM, BUT BENEFITING BY IMPLEMENTING THIS PROGRAM AND BENEFITING, UM, WHAT I THINK IS 300,000 SAN ANTONIONS WHO DON'T HAVE ACCESS TO PAID SICK LEAVE.
AND, AND WE GOT PAST THIS SESSION, UM,
[00:45:01]
I THINK IT WAS A, A POSITION THAT NOT A LOT OF PEOPLE BET, UH, UH, WOULD HAPPEN.BUT I'M, I'M GRATEFUL THAT, UH, WE TRIED TO THREAD THE NEEDLE HERE WITH, WITHIN THIS COMMITTEE, OVER THIS COUNCIL, AND, AND WE SAW THAT THROUGH.
UM, THERE'S STILL BILLS THERE ON THE GOVERNOR'S DESK, RIGHT? RIGHT.
ARE YOU EXPECTING ANY OF THE ONES ON HIS DESK NOT TO GET SIGNATURES? UM, YEAH.
WHAT DO YOU GUYS, WE ASK OUR TEAM HERE.
AND SNAPPER IN PARTICULAR SNAPPER, YOU GUYS WANT, UH, SPECIFICALLY ONES THAT WE'VE GONE THROUGH TODAY? YEAH.
I DON'T, I DON'T THINK OF OURS.
1152 HASN'T BEEN SIGNED EXPECTED.
THE TELECO, THE CABLE FRANCHISE BILL HASN'T BEEN SIGNED, BUT WE DO EXPECT THAT TO BE SIGNED, UH, OF, OF THE ONES THAT WE WATCHED AND CARE ABOUT THAT ARE ON HIS DESK.
I, I MEAN, IT'S, I HATE TO PREDICT BECAUSE WE'VE SEEN LAST MINUTE OVERNIGHT VETOES BEFORE THAT WE DIDN'T EXPECT.
BUT THERE DOES NOT APPEAR TO BE CONCERN AROUND THE THINGS THAT, UM, THAT WE'VE TALKED ABOUT HERE.
I'M SURE THERE WILL BE VETOES, AND I DON'T KNOW IF YOU WANT TO TALK MORE BROADLY, BUT MY NEXT QUESTION IS, IS ABOUT 1152.
ARE WE CURRENTLY ENGAGED IN CONVERSATIONS WITH THE GOVERNOR'S OFFICE, EDUCATING THEM ABOUT THE IMPACT IT'LL HAVE ABOUT ON US AND EXPRESSING THE CONCERNS YOU JUST HEARD FROM COUNCILMAN SIA? ABSOLUTELY.
AND MET WITH A, A GROUP OF, OF ATTORNEYS THAT WERE PREPARING, OF COURSE, THE GOVERNOR BEING A FORMER SUPREME COURT JUSTICE, WE'RE HOPEFUL THAT HE WILL TAKE A, AND HIS STAFF WILL TAKE A CLOSE LOOK AT THE CONSTITUTIONAL ISSUES AND THE SUPREME COURT PRECEDENT THAT, UH, WE HAVE IN TEXAS, THAT THAT IS DIRECTLY ON POINT WITH REGARD TO THIS ISSUE.
THAT WAS THE OTHER ISSUE THAT, THAT, AND, AND, AND I SAID THAT WAS DIRECTLY ON POINT WITH THIS ISSUE, THIS WAS CHARACTERIZED AS A TAX.
AND, UH, AND REGARDLESS OF THE FACT THAT WE HAVE A STATE SUPREME COURT CASE, FLEMING VERSUS THE HOUSTON LIGHTING AND POWER, THAT SAYS THAT A 4% GROSS REVENUES FEE IS FOR USE OF YOUR PUBLIC FEE STREETS.
IT'S A RENTAL FEE, UH, JUST LIKE A PRIVATE SECTOR.
AND THERE'S MULTIPLE DECISIONS, UNFORTUNATELY, WITHOUT HESITATION.
IT WAS CALLED A TAX ON THE FLOOR.
IT WAS CALLED $150 MILLION TAX REDUCTION.
UH, WE'RE HOPEFUL THAT THE GOVERNOR WILL LOOK AT THIS, UH, FROM THE LEGAL PERSPECTIVE, WE'VE SUBMITTED BRIEFS ON BEHALF OF THAT COALITION AND ON BEHALF OF T M L, UM, AND HE'S HAD IT FOR A WHILE.
BUT THERE'S, THERE'S ALSO A GREAT DEAL OF, OF SUPPORT, UH, FOR THAT, BOTH FROM MEMBERS OF THE LEGISLATURE AND, AND WITHIN OTHER STAKEHOLDERS IN THE PROCESS.
DO YOU WANTED TO SAY SOMETHING OR? NO.
AND THEN, UH, JEFF, JUST, JUST TO BE CLEAR, 'CAUSE WE KEEP SAYING THE TELECOMS AND THE TELECOMS, WE'RE TALKING ABOUT SPECTRUM, FORMERLY TIME WARNER CABLE LOBBYING, UH, THE HOUSE AND THE SENATE TO MAKE SURE THAT THEY GET TO USE OUR SIDEWALKS AND OUR STREETS AND OUR TELEPHONE POLES OR WHATEVER, OUR LIGHT POLES WITHOUT PAYING THE PUBLIC BACK FOR MAINTENANCE OF THOSE ASSETS.
WELL, IT'S NOT A COST-BASED FEE.
IT'S NOT A COST RECOVERY THING.
IT'S A, UH, FAIR, FAIR MARKET VALUE OF THE USE OF THE PROPERTY.
THAT'S THE WAY THE CONSTITUTION'S WRITTEN.
SO IT'S NOT JUST ON THE EXPENSE SIDE OF IT, UM, BUT IT, IT IS BASED ON THE FOR-PROFIT SERVICE THAT THEY PROVIDE.
SO THE CABLE FRANCHISE FEE BILL, FOR EXAMPLE, IS, UH, CABLE FRANCHISE FEE.
AN EXISTING STATUTE IS 5% OF GROSS REVENUES.
SO THE REVENUES THE COMPANY BRINGS IN, THEY PAY 5% OF THAT TO THE PUBLIC ENTITY WHOSE LAND THEY'RE USING.
UH, TELEPHONE COMPANIES PAY A PER LINE ACCESS FEE.
AND SO WHAT THE BILL DOES IS IF YOU DO BOTH OF THOSE THINGS, YOU ELIMINATE THE LESSER OF THE TWO.
SO THE, YOU'D MENTIONED SPECTRUM CHARTER COMCAST IS ANOTHER EXAMPLE.
AND, AND LET ME BE CLEAR TO YOUR FIRST PART.
IT WAS THE CABLE INDUSTRY THAT BROUGHT THE BILL, UH, IT'S STATEWIDE ASSOCIATION.
AND THOSE COMPANIES, WE SAT ACROSS THE TABLE FROM THEM EARLY IN THE SESSION WITH HOUSTON AND DALLAS AND A FEW OTHER BIG CITIES.
UM, SO THE CABLE COMPANIES WOULD NO LONGER PAY THE PHONE LINE FEE TO PROVIDE PHONE SERVICES TO THEIR CUSTOMERS.
THE TELEPHONE INDUSTRY, WHICH WENT OUT OF THEIR WAY TO SAY THEY WERE NEUTRAL ON THE BILL, UM, IS ALSO GONNA BENEFIT GREATLY BY NOT PAYING FOR THEIR VIDEO SERVICES, NOT PAYING A CABLE FRANCHISE FEE FOR THE PROVISION OF THOSE.
SO JUST TO GET THIS STRAIGHT, UM, HAVE WE SEEN, OR HAVE WE HEARD FROM SPECTRUM OR ANY OF THE OTHER COMPANIES THAT THEY HAVE AN INTENT OF PASSING ON THESE SAVINGS TO THE CONSUMERS? THE COMPANIES DID SAY THAT THEY WOULD NOT COMMIT
[00:50:01]
TO IT, AND AS SNAPPER MENTIONED, BECAUSE OF THE FEDERAL PREEMPTION, THE STATE LAW CAN'T REQUIRE IT.UM, BUT THE QUESTION WAS POSED BY US IN MEETINGS WITH THEM AND BY MEM OTHER MEMBERS ON THE FLOOR, THAT IF THIS WAS ALL ABOUT, UH, RETURNING THAT FEE TO THE CUSTOMER, THEN WHY WAS THE INDUSTRY SO INTERESTED IN IT? THERE CLEARLY WAS A, A BENEFIT TO THE COMPANY BESIDES THAT AND THE WAY IT WOULD HAPPEN.
SO THE, THESE FEES ARE PASSED ON TO ALL OF US.
WHEN YOU LOOK AT YOUR CABLE BILL, YOU SEE A MUNICIPAL FRANCHISE FEE ON THE BILL, THOSE THAT FEE WILL HAVE TO BE REMOVED FROM THE BILL, BUT THERE'S NOTHING THAT PREVENTS THE BASE RATE OF YOUR CABLE SERVICE TO GO UP.
AND IN FACT, IN THE MIDDLE OF THE SESSION, CONSUMER REPORTS CAME OUT WITH A NATIONWIDE STUDY SAYING THAT CABLE FEES WERE ON THE WAY UP EVERYWHERE.
SO THAT'S THE WAY THAT IT'S IMPOSSIBLE TO TRACK.
BACK TO SNAPPER'S POINT BEFORE.
AND DID YOU WANNA ADD SOMETHING? ONE LAST, ONE LAST THING, BECAUSE IT WAS RIGHT IN LINE WITH WHAT JEFF WAS SAYING.
MOST COMPANIES DO BREAK THAT OUT IN LINE ITEM, THE LARGER ONES.
WE HAVE CABLE COMPANIES ALL OVER TEXAS, AND IT WAS ASKED UNDER OATH IN THE HEARING, WHAT ABOUT THE CABLE COMPANIES THAT DON'T BREAK THOSE OUT, THAT THEIR BILL'S A HUNDRED BUCKS AND IT INCLUDES THIS FEE? DO THOSE COMPANIES PLAN ON REDUCING THOSE BASE FEES? AND THE ANSWER FROM THE CABLE, UH, ASSOCIATION PRESIDENT WAS, NO, NOT AT THIS TIME.
SO I THINK THAT IS A MORE CLEAR EXAMPLE OF WHERE THE MONEY IS GONNA GO THAN WHERE A LINE ITEM THAT THEY CHOOSE TO BREAK OUT TO A BILL, THEN THAT CAN BE RAISED WITHOUT ANY REGULATION AND WITH AT ANY TIME.
SO THE LARGE, I MEAN, FOR ME, THE BIGGER PICTURE HERE IS THAT WE'VE GOT A LOCAL COMPANY WHO'S WORKING REALLY, REALLY HARD TO MAKE SURE TO SAVE A BUCK BY USING CITY OF SAN ANTONIO ASSETS AND ABSOLUTELY NO COMMITMENT TO HELP BENEFIT THE PEOPLE OF SAN ANTONIO, FROM WHOM THEY MAKE A LOT OF MONEY, NUMBER ONE.
NUMBER TWO, UH, SPECTRUM CAME TO ME EARLY ON WHEN WE PUT TOGETHER THE INNOVATION AND TECHNOLOGY COMMITTEE AND WAS A LITTLE MIFFED BECAUSE HEY, WHENEVER YOU GUYS TALK ABOUT INNOVATION AND TECHNOLOGY, ALL YOU DO IS MENTION GOOGLE AND MICROSOFT, AND YOU NEVER MENTION US.
UM, AND, UH, YOU KNOW, I MEAN, I'M REALLY DISAPPOINTED.
UM, AND, UH, I'M NOT SURE THAT I, I'M NOT SURE THAT THAT'S GOOD CORPORATE CITIZENSHIP TO SORT OF NOT COMMIT TO HELPING PEOPLE WHEN YOU'RE ACTIVELY LOBBYING TO DENY, UM, THE CITY THE ABILITY TO HELP US MAINTAIN OUR ROADS AND STREETS AND ALL THAT.
IF I COULD JUST ADD ONE POINT OF THAT, WHEN WE DID MEET WITH THE CABLE INDUSTRY AND THE LARGE COMPANIES, UM, WE ACKNOWLEDGED, THEY LAID OUT THAT THE PRIMARY CONCERN HERE IS THAT THE TECHNOLOGY HAS EVOLVED IN ADVANCED AHEAD OF WHAT STATE LAW SAYS IN TERMS OF REGULATORY REGIME.
AND SO WHAT WE PROPOSED TO THEM WAS TREATING IT LIKE EVERY OTHER REFORM TO THIS LAW OVER THE YEARS, AND HA WORKING ON IT IN THE INTERIM AND CREATING SOMETHING THAT WAS FLAT AND EQUAL ACROSS THE BOARD.
SO WHETHER YOU'RE A WIRELESS COMPANY OR A TELECOM OR A CABLE COMPANY, YOU'RE COMPETING ON THE SAME LEVEL PLAYING FIELD, PAYING THE SAME AMOUNTS TO USE THE RIGHT OF WAY AS YOUR COMPETITORS, BECAUSE THAT'S WHAT'S DRIVING THIS.
THEY'RE ALL COMPETING WITH SORT OF A DIFFERENT STRUCTURE.
AND THE ANSWER WE GOT BACK WAS, WE, WE AGREE WITH YOU, WE, WE'D LOVE TO LOOK AT THAT, BUT NOT AT THE EXPENSE OF THE BILL.
THEY'D ALREADY HAD THE CHAIRMAN OF THIS SENATE COMMITTEE AND THE HOUSE COMMITTEE FILE THE BILLS, AND THEY WERE, THEY WERE ON THEIR WAY.
AND, UM, THEY WEREN'T GONNA STOP THAT TO HAVE THIS BROADER CONVERSATION ABOUT A REFORM TO THE REGULATORY STRUCTURE.
UH, I HAD A QUESTION ABOUT SOMETHING THAT DIDN'T PASS, AND I WAS WONDERING IF YOU COULD TELL ME WHAT THE POTENTIAL MIGHT BE IN A FUTURE SESSION.
IT'S IT'S ANCHOR NEIGHBORHOOD.
COULD YOU, UH, TELL US A LITTLE BIT ABOUT HOW THAT WAS GOING AND, UH, YOU KNOW, IF IT HAD ANY LEGS AT ALL, BECAUSE I KNOW WE'VE TALKED ABOUT, OR, OR GROUPS HAVE COME TO US AND, YOU KNOW, OUR AREA'S GOING WAY UP BECAUSE OF THIS GOING ON IN OUR AREA.
HOW CAN WE PROTECT OUR PROPERTY VALUES FROM GOING UP LIKE THIS? RIGHT.
AND WE TALKED A LITTLE BIT ABOUT TARGETED TAX RELIEF.
SO WHAT WAS GOING ON WITH THAT, CHRISTINE? IT DIDN'T GET A HEARING, CORRECT? IT DID GET A HEARING, BUT DIDN'T MOVE OUTTA COMMITTEE.
UH, REPRESENTATIVE BERNAL FILED IT IN THE HOUSE, SENATOR MENENDEZ IN THE SENATE.
UH, IT BASICALLY SAID IF YOU HAVE BEEN IN YOUR PROPERTY FOR A LONG PERIOD OF TIME AND SEEN VALUES GO UP AROUND YOU BY A CERTAIN PERCENTAGE, UH, THAT YOUR TAXES WOULD BE FROZEN.
SO IT'S, IT'S TO PROTECT THE PROVERBIAL EXAMPLE OF SOMEONE WHO'S BEING TAXED OUTTA THEIR HOME BECAUSE OF WHAT'S HAPPENING AROUND THEM.
UM, THE, THE ANSWER THAT I THINK THE SHORT ANSWER TO ALL THIS IS THAT THROUGHOUT THE DISCUSSION ON SB TWO AND PROPERTY TAX CENTER, BETTENCOURT,
[00:55:01]
WHO WAS THE SPONSOR OF THE SENATE BILL, SAID, THIS IS AN EVERYBODY PAYS PROBLEM.THAT WAS THE MESSAGE ALL SESSION, THAT IT'S NOT JUST ABOUT TARGETED PEOPLE IN SOME AREAS NEEDING RELIEF.
THIS IS ABOUT EVERYBODY PAYING WAY TOO MUCH AND SEEING TOO MUCH INCREASE IN THEIR PROPERTY TAX REVENUE.
SO, WITH SO MUCH FOCUS ON THE STATEWIDE REFORM, THERE JUST REALLY WASN'T AN APPETITE TO, TO, UH, RIFLE SHOT SOLUTIONS.
UM, AND IT DIDN'T, IT DIDN'T HAVE A LOT OF LEGS, IT DIDN'T HAVE A LOT OF TRACTION.
NOW, WHEN YOU THINK ABOUT WHAT THE ARGUMENT OFTEN IS, THAT PERSON WHO'S SEEING THEIR VALUES GO UP AND CAN NO LONGER AFFORD THEIR OWN PROPERTY, UH, THIS IS INCREDIBLY SMART, UM, LEGISLATION.
IT TACKLES THE PROBLEM WITHOUT, UH, DOING ANOTHER OF OTHER THINGS THAT MAYBE AREN'T NECESSARY.
BUT, UM, THERE, THERE WASN'T CAPACITY FOR IT THIS SESSION.
AND, UM, KNOWING THOSE TWO MEMBERS, I SUSPECT THEY'LL BE BACK WITH IT IN FUTURE SESSIONS.
AND, AND THERE'S A LOT OF DIFFERENT WAYS TO TARGET IT.
IT'S NOT JUST THE LONGTIME HOMEOWNER, HOMEOWNER, BUT IT'S VETERANS.
IT'S, UH, THERE'S A NUMBER OF OTHER SORT OF TARGETED RELIEF THAT UNDER STATE LAW WE CAN'T PROVIDE RIGHT NOW.
ANOTHER QUESTION I HAD WAS, UH, I THINK THE SUPREME COURT THREW OUT, UH, SOMETHING ABOUT, UH, WALKING QUORUMS, AND I THINK SOMETHING WAS PENDING IN THE LEGISLATURE TO CORRECT THAT.
SO THAT DIDN'T, DO YOU KNOW WHAT HAPPENED WITH THAT? THAT DIDN'T MOVE RIGHT, CHRISTINE? CORRECT.
THE WALKING QUORUM BILL OPEN MEETINGS ACT BILL.
UM, IT WAS FIXED IN A BILL 16.
ARE YOU, I I DON'T HAVE THAT OFF THE TOP OF MY HEAD.
DO YOU WANT TO ANSWER CHRISTINE? 16? YEAH.
BILL 1640 PASSED SENATE BILL 1640 PASSED.
WHAT DOES THAT MEAN NOW? UM, I, I DON'T HAVE IT IN FRONT OF HIM.
I, I DON'T WANT, I DON'T WANT TO GET INTO A WALKING TROUBLE, SO, YEAH.
THAT'S ALL MY APOLOGIES, COUNCILMAN.
I WANTED TO FORECAST ON TWO ITEMS TO, UH, THE NEXT, UH, I G R COMMITTEE.
SOME THINGS THAT I THINK ARE, ARE VERY EASILY GETABLE AND THEN ONE, ONE CO CAUTION.
UM, THE ONE THAT WE MISSED OUT ON, WHICH I DON'T EXACTLY KNOW, WHY WAS THE PRIMA FASCIA THAT IS MM-HMM.
AGAIN, ONE OF THE MOST COMMON COMPLAINTS THAT WE HEAR FROM OUR NEIGHBORHOOD ASSOCIATIONS WHEN WE'RE MEETING IS YOU NEED TO GET PEOPLE TO SLOW DOWN IN THE NEIGHBORHOOD.
AND WE TELL THEM, WHEN THEY ASK WHAT THE SPEED LIMIT IS, WE SAY, WELL, IF IT'S NOT POSTED, IT'S 30.
UM, AND IF YOU EVER TEST THAT THEORY AND GO 30 IN A NEIGHBORHOOD, YOU'LL GET A LOT OF FRIGHTENED PEOPLE.
SO WE WANT TO TRY TO REDUCE THAT DOWN, I THINK, TO 25.
BECAUSE IF, THE REASON WE WANT PRIMA FASCIA, IF I CAN EXPLAIN IT SHORTLY, IS THAT IF, IF IT IS NOT POSTED, UM, AND YOU WANT IT TO BE 25, YOU HAVE TO PAY FOR THE POSTING AND THE CITY HAS TO GO AND PUT SIGNS EVERYWHERE THAT IT NEEDS TO, RIGHT.
OR OTHERWISE, THE PRIMA FASCIA IS JUST THE, THE STANDARD 25 ACROSS THE BOARD.
SO, UH, CAN YOU TELL US HOW DO WE, HOW DO WE GEAR UP TO FOR SUCCESS IN THAT? AND I KNOW THAT, UH, REPRESENTATIVE, UH, UH, LOPEZ IS HERE AND, UH, WE KNOW THAT AS A FORMER COUNCIL MEMBER, THAT'S SOMETHING WE HEAR A LOT ABOUT.
AND IT SEEMS LIKE THAT ONE SHOULD BE AN EASY WIN, BUT WE DIDN'T REALLY PULL IT OUT.
IT SHOULD BE, AND AS YOU RECALL, WE, WE BROUGHT IT UP TO THAT WHOLE BALLROOM FULL OF OTHER CITIES LAST SUMMER.
UH, AND THERE WERE SOME CITIES IN THE ROOM WHO DIDN'T WANT IT.
AND SO WE WENT INTO THE SESSION WITH AN AGREEMENT WITH, UH, HOUSTON, DALLAS, AUSTIN, AND SAN ANTONIO TO BRACKET A BILL ONLY TO THE FOUR LARGEST CITIES IN THE STATE AND HAVE THAT PRIMA FASCIA, PRIMA FASCIA, UH, REDUCTION ONLY APPLY TO US.
WE HAD THAT BILL FILED BY OUR MEMBERS.
MEANWHILE, A MEMBER OUT OF AUSTIN FILED A STATEWIDE BILL, WHICH SHE HAS FILED IN SESSIONS PAST.
UH, AND THE STATEWIDE BILL GOT HEARD FIRST AND OTHER COMMUNITIES THAT DIDN'T WANT IT, SPOKE UP ABOUT IT AND RAISED CONCERNS.
AND THERE IS SUCH A THING, I THINK, AS MOMENTUM IN THE LEGISLATURE.
AND WHEN THE STATEWIDE BILL WENT FIRST AND, AND LANDED WITH A THUD, IT, IT ELIMINATED SOME OF THE, UH, CAPACITY FOR THE TRANSPORTATION COMMITTEE TO LATER HEAR THE TARGETED ONE.
THEY HAD KIND OF MOVED ON FROM THAT ISSUE.
SO I THINK, UM, I THINK NEXT SESSION WE'LL HAVE TO WORK REALLY HARD TO MAKE SURE THAT IT IS THAT BRACKETED BILL THAT GETS THE ATTENTION OF THE CHAIR AND THE COMMITTEE, UH, AND NOT THE, THE ONE THAT'S GONNA DRAW OPPOSITION FROM OTHER PARTS OF THE STATE.
WHY THOSE OTHER CITIES ARE OPPOSED TO IT, WE'RE NOT ENTIRELY CLEAR, BUT IT GOES BACK TO THE LOCAL DECISIONS ARGUMENT.
IF THEY DON'T WANT LOWER SPEED LIMITS, THEN, YOU KNOW, WE'RE NOT GONNA FORCE IT ON 'EM, WHICH IS WHY WE, WE TOOK THE TARGETED APPROACH AND, AND IT JUST DIDN'T HAPPEN.
SO YOUR SUGGESTION IS FOR THE NEXT I D R COMMITTEE THAT, THAT WE DO THE BEST WE CAN TO GET
[01:00:01]
A BRACKETED VERSION OF PRIMA FACIA IF WE WANNA HAVE THIS BE SUCCESSFUL AS A TOOL.AND THAT'S WHAT WE DID THE SESSION, BUT THAT'S NOT THE BILL THAT GOT HEARD FIRST.
I THINK WE NEED TO GET THIS IN FRONT OF THE, PUT THE STATEWIDE DISCUSSION ASIDE AND FOCUS ON THE BRACKETED PIECE.
AND, AND THE SECOND, THE CAUTION THAT I WANTED TO GIVE, UH, THIS COMMITTEE AND MAYBE THE REST OF THE FOLKS WHO WERE, WHO WERE CONSIDERING THE ISSUE OF PUBLIC EDUCATION AND THE FUNDING, UM, I WAS JUST TEXTING HERE WITH, UH, WITH COUNCILMAN PERRY.
I ASKED HIM WHAT YEAR HIS CORVETTE WAS.
HE'S GOT A BEAUTIFUL 2017 STINGRAY.
AND I'M THINKING TO MYSELF, IF I REALLY WANTED TO, I THINK I COULD BUY A 2017 STINGRAY.
THE PROBLEM IS IT'S MORE CAR THAN I CAN AFFORD, AND PROBABLY MORE CAR FOR THE KIND OF MUSCLE THAT IT'S GOT.
IT'S MORE CAR THAN I CAN AFFORD.
AND IT'S SORT OF THE WAY THAT I THINK ABOUT, UH, THE WAY THAT WE, YOU KNOW, SUCCESSFULLY PASSED PUBLIC EDUCATION AND, AND A COMPRESSION ON THE TAX.
IF YOU LOOK AT 11.5 BILLION, THAT MONEY CAME FROM SOMEWHERE.
AND I ACTUALLY THINK THEY, THEY BOUGHT MORE CAR THAN THEY CAN AFFORD, IF YOU CAN, IF I CAN KEEP THE ANALOGY, BECAUSE IF THEY'RE GONNA CONTINUE TO BUY DOWN PROPERTY TAX RELIEF, UM, THEY'RE GONNA HAVE TO MAKE THE SCHOOL DISTRICTS WHOLE.
AND I JUST DON'T KNOW IF THAT'S SOMETHING THAT, UH, AS I'M PROVIDING CAUTION, YOU KNOW, WE, WE DIDN'T COMPLETELY SOLVE THE PROBLEM.
UH, I THINK WE'RE RELYING ON A, ON A TEXAS ECONOMY THAT CONTINUES TO HUM.
AND I JUST DON'T THINK THAT'S THE WAY MARKETS WORK.
UM, BUT I KNOW IF, IF SOMEBODY MAYBE WANTS TO JUST HELP ME, SETH ROWS FROM S A I PAINT THAT PICTURE SO THAT WE'RE, I JUST DON'T WANT FOLKS TO FEEL LIKE WE'VE CLOSED THE BOOK AND EVERY EVERY, EVERY PROBLEM IS SOLVED.
SO, SETH, IF YOU WANNA GIVE US A LITTLE BIT OF DOSE OF REALITY WITH SOME OF THAT MEDICINE.
THANK YOU COUNCILMAN SALANA FOR, UM, BRINGING THAT UP HERE.
SO THIS SESSION, WE ENTERED THE SESSION WITH A $9 BILLION SURPLUS.
THAT SURPLUS CAME MAJORITY FROM SALES TAX REVENUE.
SO OF THE MONEY THAT'S COMING IN, THE TOTAL PACKAGE AT THE END HERE IS ABOUT $11.6 BILLION.
SO WE HAD MOSTLY THE EXTRA SALES TAX MONEY COMING IN HERE.
THERE WERE, THERE WERE A COUPLE NEW STREAMS OF REVENUE THAT CAME IN, BUT THEY'RE MOSTLY ONE-TIME BOOSTS.
SO THERE WAS A SUPREME COURT DECISION LAST YEAR THAT WAS THE, CALLED THE WAYFAIR CASE, WHERE THE, UH, STATE OF NEW HAMPSHIRE AND, UM, WAYFAIR, THE ONLINE RETAILER, HAD GONE TO COURT OVER THE FACT THAT SINCE THEY DIDN'T HAVE A PHYSICAL PRESENCE IN THAT STATE, THAT THEY WERE NOT ABLE TO COLLECT THE SALES TAX THAT THE STATE OF NEW HAMPSHIRE PREVAILED IN THIS CASE.
SO NOW THAT ALL THE STATES IN THE COUNTRY CAN BENEFIT FROM THIS, AND THIS DOES BRING IN AN EXTRA $350 MILLION OVER, I'M SORRY, AN EXTRA $550 MILLION OVER THE NEXT TWO YEARS.
SO THAT IS ANOTHER SOURCE OF REVENUE, BUT THAT ISN'T GONNA SOLVE THIS ISSUE ALONE.
AND RIGHT NOW, ALL THE ASSUMPTIONS THAT THEY MADE IN DETERMINING HB THREE IS THAT THE STATE IS GONNA HAVE 4% SALES TAX GROWTH YEAR OVER YEAR, AND 4% PROPERTY TAX GROWTH YEAR OVER YEAR.
IF THE NUMBERS ON ARE HIGHER THAN THAT, ESPECIALLY IF THE PROPERTY TAX GROWTH IS HIGHER THAN THE SALES TAX GROWTH, WE COULD BE IN A SITUATION WHERE WE'RE GONNA NEED TO FIND ADDITIONAL SOURCES OF STATE REVENUE TO COME IN AND PLUG THE GAPS IF WE WANNA KEEP ON REDUCING PROPERTY TAXES.
AND WE EXPECT THAT THERE'S GONNA BE MORE CONVERSATIONS OVER THE INTERIM ABOUT LOOKING AT THIS, BUT THERE'S NOT GONNA BE A FORMAL SCHOOL FINANCE COMMISSION.
LIKE THERE WAS THIS PASSAGE INTERIM LOOKING AT THAT.
SO IT REALLY DEPENDS ON THE RATE OF ECONOMIC GROWTH.
AND IF ANYBODY'S INTERESTED, SETH IS THE SMARTEST GUY I KNOW ON THIS ISSUE.
AND, UM, IF YOU WANNA GET A DOWNLOAD, HE'S AVAILABLE.
UM, BUT YEAH, AS, AS I'M THINKING, AND I'VE GOT A 77 CORVETTE, WHICH IS 50 YEARS OLDER THAN THE 2017 IN THE PARKING SLOT THAT COUNCILMAN PERRY HAS.
SO AGAIN, I THINK THAT THE, THE, I THINK THAT THE STATE CAN AFFORD TO, TO DRIVE THIS CORVETTE THEY BOUGHT FOR, YOU KNOW, THE BIENNIUM.
AND WE'LL FIND OUT PRETTY QUICKLY IF WE'RE GONNA BE ABLE TO AFFORD THE COMPRESSION AND THE ADDITION TO THE, TO THE, UH, THE SCHOOLS THAT WE'RE, WE'RE LAYING OUT.
I WANTED TO TALK ABOUT THOSE TWO THINGS.
UH, THANK YOU SETH, AND THANK YOU COUNCILMAN PERRY FOR LETTING ME USE THE EXAMPLE.
THANK YOU JEFF, AND THE WHOLE TEAM FOR ALL OF YOUR HARD WORK.
UM, I KNOW I'VE HEARD, UH, STATE REPRESENTATIVE AL OFTEN SAY THAT IT'S HARD TO WORK AT THE LEGISLATURE 'CAUSE YOU CAN'T COME HOME AND SAY, HEY, I HAD A GREAT WIN.
OR AT LEAST IN PAST SESSIONS, IT'S MOSTLY ABOUT I SAVED THIS DISASTER FROM HAPPENING TODAY.
UM, BUT THIS TIME HE DID GET A WIN, SO THAT'S GREAT.
UM, SO TO CLARIFY, THE DISCUSSION THAT YOU WERE JUST HAVING, THE ROLLBACK RATE GOES FROM 8% TO 3.5, BUT THE ASSUMPTION IS THAT, UH, PROPERTY TAXES WILL INCREASE, OR VALUATIONS WILL INCREASE BY 4% THAT, YEAH, I'LL LET SETH ANSWER THE QUESTION, BUT THE, THE, THE ROLLBACK ONLY APPLIES TO THE LOCALS.
I MEAN, THE STATE BUDGET ITSELF IS RELYING ON A, WHAT, 5.5% GROWTH THIS YEAR OR SO? YEAH, I THINK SO.
SO THE, THE STATE FOR, FOR THIS BIENNIUM, THEY'RE PROJECTED IN FISCAL YEAR 20, SO THEIR FISCAL YEAR STARTS SEPTEMBER 1ST.
SO THEY'RE, UH, FOR THEIR FISCAL YEAR, THEY'RE PROJECTING 6.7% GROWTH FOR FISCAL YEAR 20, AND THEN 4.1% GROWTH FOR FISCAL YEAR 21.
SO THEY'RE ASSUMING, AND THEN THEY'RE GONNA ASSUME A FLATLINE 4% GROWTH BEYOND THAT, OBVIOUSLY WE KNOW THE ECONOMY A LOT OF TIMES IS GONNA GROW FASTER THAN THAT.
IT COULD GROW SLOWER THAN THAT.
[01:05:01]
IT'S A, AN ASSUMPTION.YEAH, I, I WISH I COULD GIVE YOU A BETTER ANSWER THAN THAT.
IT DOESN'T HAVE TO MAKE SENSE, RIGHT? NO, IT GETS TO A POINT WHERE US IN THE I S D WORLD ARE, ARE FAIRLY NERVOUS ABOUT THIS AT THE MOMENT BECAUSE IF THE ECONOMY GROWS TOO QUICKLY, THEN THEY'RE GONNA HAVE TO HAVE EVEN MORE PROPERTY TAX BUY DOWNS.
OR IF THE ECONOMY GROWS TOO SLOWLY, WHERE DOES, ARE WE GONNA BE ABLE TO HAVE ANY REVENUE TO MAKE SURE THAT WE COULD STILL AFFORD TO MAINTAIN OUR SCHOOL DISTRICTS AND JUST AS OUR CITIES, COUNTIES, AND ALL THE OTHER SERVICES THAT ARE IN THE ROOM ARE FAIRLY NERVOUS ABOUT THIS.
UM, UH, JEFF, OR, OR TO, TO STAFF, IN TERMS OF THE, THE ROLLBACK RATE, DOES THAT IN ANY WAY AFFECT OUR CREDIT RATING OR OUR ABILITY TO ISSUE BONDS OR CERTIFICATES OF OBLIGATION? I DON'T KNOW IF, BEN, DO YOU WANNA ANSWER THAT? WELL, BEN'S COMING UP TO THE PODIUM, BUT JUST REAL QUICK, COUNCILWOMAN, UM, YOU KNOW, ONE OF THE THINGS THAT WE'LL BE TALKING ABOUT NEXT WEDNESDAY ARE FINANCIAL POL FINANCIAL POLICIES.
UM, AND, AND, UM, SO EVERY TEXAS CITY AND COUNTY IS GOING TO HAVE TO LOOK AT THEIR FINANCIAL POLICIES AND, AND, AND TO DO SO, NOT JUST FROM AN, AN ANNUAL BUDGETING AND FINANCIAL, UM, POSITIONING, BUT I'M SURE THAT THE RATING AGENCIES WILL BE ASKING TEXAS CITIES AND WE'LL BE THERE, THEY'LL BE HERE, UH, IN JULY.
UM, HOW ARE WE GOING TO MANAGE THROUGH THAT? SO THAT'S PART OF NEXT WEEK'S CONVERSATION.
SO THAT'S, THAT'S KIND OF THE HIGH LEVEL ISSUE, UM, THAT EVERYBODY'S GONNA BE DEALING WITH AND WE'RE GONNA BE DEALING WITH HERE IN ABOUT A WEEK OR SO.
UH, GOOD AFTERNOON, COUNCILMAN.
I THINK ERIC SUMMED IT UP WELL, I MEAN, THEY'RE CERTAINLY GONNA LOOK AT THAT ISSUE.
MATTER OF FACT, I THINK MOODY'S PUT SOMETHING OUT EITHER LAST WEEK OR THE WEEK BEFORE, TALKING ABOUT THIS BILL AND IT BEING A CREDIT NEGATIVE ON ENTITIES IN TEXAS, THAT BASICALLY MEANS IT'S, IT'S NOT, WE'RE NOT GONNA DOWNGRADE YOU, WE'RE NOT GONNA TAKE ACTION.
WE'RE GONNA LOOK AT IT ON A CASE BY CASE BASIS, BUT THEY CERTAINLY UNDERSTAND THAT TAX CAPS MATTER, UM, AND THEY AFFECT WHAT WE CAN DO AND HOW WE CAN DO IT.
UM, SO I THINK OUR, THE CONVERSATION WE START TO HAVE NEXT WEEK IS GONNA BE AN IMPORTANT ONE BECAUSE OUR, OUR FISCAL REALITIES, THE, THE PARAMETERS THAT WE'VE OPERATED IN HISTORICALLY HAVE CHANGED DRAMATICALLY.
AND WE'RE GONNA HAVE TO TALK ABOUT ADJUSTING WITHIN THOSE NEW PARAMETERS, AND THEY'RE GONNA WANNA LOOK AT HOW WE DO THAT AND HOW WE PLAN TO MOVE FORWARD.
SO THAT'LL BE AN IMPORTANT CONVERSATION FOR US WITH YOU ALL AS THE POLICY BOARD.
BUT THEN THE CONVERSATION THAT WE HAVE WITH THEM LATER THIS SUMMER AS WE GO OUT FOR OUR NEXT ISSUANCE OF BONDS, DOES, DOES THAT MEAN WHEN YOU'RE TALKING ABOUT A CASE BY CASE BASIS, UM, AND I, WE CAN SAY PART OF THIS FOR NEXT TIME, IF WE'RE TALKING ABOUT A CASE BY CASE BASIS AND WE HAVE THIS CAP, THEN OUR OTHER PRACTICES BECOME MORE IMPORTANT YES.
OR HAVE A HIGHER WEIGHTING WHEN THEY DETERMINE WHAT OUR CREDIT RATING IS LIKE.
I MEAN, WE'RE GONNA HAVE TO TALK ABOUT HOW WE, OR LIKE OUR CONTINGENCY OR, OR THAT KIND OF STUFF.
SO WE'RE LOOKING AT ALL OF THAT.
WE'RE GOING BACK THROUGH THE METHODOLOGY STAFF IS WITH OUR FINANCIAL ADVISORS.
WE'RE GONNA BRING FORTH SOME RECOMMENDATIONS ABOUT HOW WE TRY TO ADJUST TO THIS NEW, THIS NEW FISCAL REALITY THAT WE'RE DEALING WITH.
BUT WHEN I MEANT LIKE CASE BY CASE BASIS, IT'S REALLY THAT SOMETIMES RATING AGENCIES WILL SEE SOMETHING CHANGE IN AN INDUSTRY AND THEY MAY TAKE ACTION ACROSS THE BOARD WHAT THEY'VE, I THINK WHAT THEY'RE SAYING SO FAR, AND I HOPE IT STAYS THERE, IS THAT THEY'RE GONNA LOOK AT US ON AN ENTITY BY ENTITY BASIS.
SO THEY'RE GONNA LOOK AT WHAT IS SAN ANTONIO GONNA DO? RIGHT? WHAT ARE YOUR FINANCIAL POLICIES LOOK LIKE? HOW ARE YOU GONNA MANAGE IN THIS NEW, UH, FINANCIAL WORLD? UH, AND THEN THEY'LL MAKE THEIR ASSESSMENT BASED ON THAT.
UM, I ALSO SUPPORT, UM, REVISITING THE SPEED LIMIT ISSUE, UH, NEXT TIME AROUND.
SO LET US KNOW HOW WE CAN HELP, UH, IN THE FUTURE.
AND THEN, UH, REGARDING THE TELECOM AND THE RIGHT OF WAY.
UM, SO FOR TELECOM COMPANIES THAT RIGHT NOW ARE UTILIZING OUR RIGHT OF WAY, IT MEANS WE STOP COLLECTING ANY REVENUE FROM THEM, NOT ANY REVENUE, BUT THE LESSER OF THOSE TWO FEES THAT THEY CURRENTLY PAY.
SO AGAIN, IT, IT WOULD ONLY APPLY TO A COMPANY THAT'S DOING BOTH CABLE SERVICES AND TELEPHONE, AND WE WOULD NOT BE ABLE TO COLLECT REVENUE ON THE LESSER OF THOSE TWO FEES.
SO FOR AN AT AND T, THAT MEANS THEY WOULDN'T PAY THE, THE VIDEO SERVICE FEE.
AND FOR THE CABLE COMPANY, THEY WOULDN'T PAY A PHONE ACCESS LINE FEE.
AND, UM, SO I GUESS WHAT, I DON'T THINK WE HAVE THE ANSWER TO THIS, BUT IN THE FUTURE WHEN A, THEY WANT TO EXPAND AND USE ADDITIONAL RIGHT OF WAY AS THEY GROW, UM, WHERE DOES THAT LEAVE US IN TERMS OF ANDY OR ED? DO YOU GUYS WANNA, ARE, ARE WE STILL GOING TO BE, UM, LE LEGALLY WE'RE REQUIRED TO ALLOW THE USE OF THE RIGHT OF WAY? CORRECT.
WE, WE CAN DON'T BE PART OF OUR DISCUSSION,
AND THE ENTIRE TEAM, SAN ANTON,
[01:10:01]
TEAM SAN ANTONIO, AND ALL OF YOU WHO ARE UP THERE IN AUSTIN, APPRECIATE, UH, AND TO MY, UH, CHAIRMAN'S POINT, UM, THINGS MOVE VERY FAST.AND SO WHEN WE HAVE TO GET OUR REPRESENTATIVE AND OUR DELEGATION ON THE PHONE JUST TO TALK TO THEM, UH, THANK YOU FOR JUST CALLING US SO WE CAN MAKE THE CALLS THAT WE NEED TO AS WELL.
QUESTION ABOUT, UM, MEANINGFUL PROPERTY TAX RELIEF, THE HB THREE, NUMBER FIVE, AGAIN, IN IT, UM, YOU, IT TALKS ABOUT THE 11.6 BILLION IN NEW FUNDING FOR PUBLIC ED.
WONDERING, HAVE WE ALREADY, UM, MAYBE HAD A DEBRIEF WITH ALL OF OUR SCHOOL DISTRICTS IN THE, IN THE AREA, SEEING HOW THEY'RE GOING TO BE, UM, HOW THIS IS GOING TO BE TRANSLATING OR IMPLEMENTING, UH, HOW THEY'RE GOING TO BE IMPLEMENTING THAT? UH, I KNOW THEY'RE STILL PROBABLY TRYING TO FIGURE IT OUT, BUT HAVE WE GOTTEN ANY INDICATION OR ANY DEBRIEF FROM THEM YET IN REGULAR DIALOGUE WITH THEM? OKAY.
UM, AND I THINK ONE OF THE SUPERINTENDENTS IN THE PAPER LAST WEEK THAT IT WAS GONNA TAKE A WHILE TO UNPACK THIS WHOLE THING.
SO IS THAT A GOOD SUMMARY? UH, WE'RE, WE'RE TALKING WITH THEM, BUT I DON'T THINK ALL THE ESD ISDS HAVE ENTIRELY DETERMINED, UH, HOW, HOW THIS IS GONNA BE IMPLEMENTED AND SO FORTH.
UM, AND THEN TO THAT, THAT SAME POINT, I GUESS SETH'S GOT SOMETHING HERE.
I'LL JUST GIVE YOU A SUPER HIGH YEAH.
I'LL JUST GIVE YOU A SUPER HIGH LEVEL OVERVIEW FOR S A I S D HERE REAL QUICK.
SO WE'RE AT, WE GOT ABOUT 36 MILLION EXTRA FROM THIS BILL.
WE HAD A $16 MILLION DEFICIT THAT'S GONNA BE KNOCKED OUT THROUGH THIS, WHICH IS GREAT.
UM, THEN WE HAVE TO, WELL, THERE'S A FEW MORE TECHNICAL DETAILS, AND THEN WE'RE GONNA BE GIVING ABOUT A FI, OUR BOARD'S GONNA VOTE ON JUNE 17TH, AND THEY'RE GONNA GIVE ABOUT $15 MILLION WORTH OF RAISES.
AND THEN THERE'S GONNA BE A LITTLE BIT OF MONEY LEFT OVER FOR SOME EXTRA PROGRAM.
IF I COULD JUST ADD ONE THING TO CALDWELL FROM N E I S D JUST SAID TO ME, A LOT OF IT IS DEPENDENT ON COMMISSION RULEMAKING.
SO THE STATE AGENCY'S GONNA HAVE TO ESTABLISH THE RULES OF HOW I SEE.
OF HOW OF WHAT THE LEGISLATURE'S INTENT WAS, AND SO MM-HMM.
SO TO THAT POINT TOO, ON HERE IT SAYS 6.5 BILLION TEACHERS, RAISES, RAISES PRE-K DO DUAL LANGUAGE.
WILL THAT IMPACT OR HAVE ANY IMPACT ON OUR, ON PRE-K AND HOW THE PARTNERSHIPS THAT WE HAVE RIGHT NOW WITH PRE-K FOR SA? UH, I THINK CARLOS JUST STEPPED OUT.
I, I, I THINK THE BIGGER PICTURE ANSWER IS TO BE DETERMINED, BUT WHAT WHAT IT DOES IS PROVIDE, UH, SO THE, FIRST OF ALL, THE STATE PROVIDES FUNDING, AS DOES OUR PRE-K PROGRAM FOR, UH, CERTAIN ELIGIBLE STUDENTS.
UM, THE STATE HISTORICALLY HAS PROVIDED HALF DAY FUNDING TO A LOT OF THE DISTRICTS.
WHAT THIS BILL DOES NOW IS PROVIDE FUNDING FOR FULL DAY.
IT REMAINS LIMITED TO THOSE ELIGIBLE SETS OF, UH, STUDENTS.
AND, AND I THINK THE SCHOOL DISTRICTS THEMSELVES ARE STILL DETERMINING HOW THEY'RE GONNA USE IT IN WHAT THEY'RE GONNA BE ABLE TO OFFER.
I BELIEVE SPACE REQUIREMENTS AND SO FORTH ARE PART OF IT.
IT WILL BE REQUIRED BY LAW TO OFFER IT AT THE DISTRICT LEVEL.
SO IT WILL STILL BE STUDENTS, NOT EVERY SCHOOL.
SO IT'LL STILL BE DETER WILL, IT'S STILL GOING TO BE TO BE DETERMINED FOR US AS HOW THAT WILL RELATE WITH US IN OUR, IN OUR CONTRACT WITH DIFFERENT, YEAH.
I THINK DISTRICT, I THINK THAT'S A PENDING CONVERSATION.
I DON'T KNOW IF YOU WANNA ADD ANYTHING, CARLOS, BUT THAT WAS THE QUESTION.
AND THEN FINALLY, UM, THAT SAME SLIDE, UM, YOU SAID 38 TO 45% STATE FUNDING HAS INCREASED, BUT YOU ALSO MENTIONED IN YOUR COMMENTS, SO YOU ALSO SAID THAT THE STATE IS INTENDING TO FILL THAT GAP.
AND WHAT IS THE, WHAT DOES THAT MEAN? STATE INTENDING, WELL, MAYBE INTENDING IS NOT THE WORD.
IT'S, IT, THEY ARE FILLING THE, SO THE WAY THEY'RE, UH, LOWERING PROPERTY TAXES BY CAPPING DISTRICTS, AND THERE'S A LOT OF COMPLICATIONS AROUND COPPER, PENNIES AND SO FORTH.
BUT THE BOTTOM LINE IS THE STATE IS COMPRESSING LOCAL PROPERTY TAX RATES.
AND THEN FILLING THAT GAP WITH ADDITIONAL STATE FUNDING MM-HMM.
SO HOW IT GOES AFTER THAT, I THINK, GOES BACK TO SETH'S COMMENTS EARLIER IN TERMS OF WHAT THE STATE CAN AFFORD, OR ACTUALLY, I GUESS CHAIRMAN ANA'S COMMENTS EARLIER, OKAY.
BUT THAT, BUT THAT'S THE WAY THE TWO WORK TOGETHER ESSENTIALLY.
SO THEY, IN HB THREE, THEY COMPRESSED SCHOOL TAX RATES, PUT MORE STATE MONEY IN, IN SB TWO, THEY COMPRESSED, UH, CITY AND COUNTY TAX RATES.
AND OF COURSE, UH, WE MAKE IT UP LOCALLY OR, OR DON'T, THERE'S NOT STATE FUNDING TO CLOSE THAT GAP.
AND I THINK, UH, I THANK YOU FOR, UM, AGAIN, ALL OF OUR PARTNERS WHO WORKED HAND IN HAND WITH US, UH, TODAY.
AND THANK YOU TO OUR LOBBYING TEAM.
GLAD WE CAN KEEP YOU ALL ON BOARD AS WE MOVE FORWARD IN THE NEXT, UH, IN THE NEXT, UH, SESSION.
[01:15:01]
FOR FUTURE I G R MEETINGS, MAYOR, I'LL JUST SHARE THIS WITH YOU RIGHT NOW.AND MAYBE FOR YOU, JEFF, UH, THAT WE CAN GET A BRIEFING FURTHER DOWN THE LINE OR EVEN IN A MEMO FORM ABOUT THE, UM, WHAT THE STATE, UH, WHAT THE HOUSE JUST PASSED YESTERDAY, THE DREAM AND PROMISE ACT, UM, AND SEE WHERE WE AS A CITY CAN WORK ON THAT.
UM, THAT'S IT FOR OUR BRIEFING TODAY.
THANK YOU VERY MUCH, JEFF AND YOUR TEAM.
UH, EXCELLENT PRESENTATION AND OF COURSE GREAT RESULTS IN AUSTIN.
AND DO WE HAVE, UH, WE DO HAVE AN EXEC SESSION BRIEFLY TODAY.
THE TIME IS NOW 3:36 PM ON THIS FIFTH DAY OF JUNE, 2019.
PURSUANT TO THE AUTHORITY GRANTED BY CHAPTER 5 5, 1, THE TEXAS GOVERNMENT CODE V T C SS, TEXAS OPEN MEETINGS ACT, THE CITY COUNCIL WILL NOW RECESS INTO EXECUTIVE SESSION TO DISCUSS ECONOMIC DEVELOPMENT NEGOTIATIONS PURSUANT TO TEXAS GOVERNMENT CODE SECTION 5 5 1 0.087, ECONOMIC DEVELOPMENT, PURCHASE EXCHANGE, LEASE, OR VALUE OF REAL PROPERTY PURSUANT TO TEXAS GOVERNMENT CODE SECTION 5 5 1 0.072 REAL PROPERTY AND LEGAL ISSUES RELATED TO COLLECTIVE BARGAINING PURSUANT TO TEXAS GOVERNMENT CODE SECTION 5 5 1 0.071 CONSULTATION WITH ATTORNEY.