[1. 19-4463 Briefing on the City’s financial policies and potential budget policy issues in preparation for the June 21, 2019 City Council Budget Goal Setting Session for the FY 2020 Budget. (María Villagómez, Deputy City Manager; Justina Tate, Director, Management & Budget)]
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WELL, BUT ALSO WHEN THE ECONOMY'S NOT DOING WELL.AND TO DO THAT, SO THAT WE'RE NOT HAVING LARGE FLUCTUATIONS AND SERVICE LEVELS FROM YEAR TO YEAR.
WE WANT TO BALANCE THAT OFF AS MUCH AS WE CAN.
THE POLICIES THAT WE'VE HAD IN PLACE HAVE ALLOWED SAN ANTONIO TO PERFORM VERY WELL FINANCIALLY.
IT LOOKS LIKE THE TEST WE WENT THROUGH THE LAST BIG RECESSION, WE FAIRED VERY WELL.
THAT'S NOT TO SAY THAT WE DIDN'T FEEL THE PAIN AND HAD TO MAKE ADJUSTMENTS AND DO THAT, BUT WE CERTAINLY WEREN'T DOING IT TO THE LEVEL OF OF THAT AND ALLOWED US TO CONTINUE TO BE ABLE TO ADJUST, EVEN IN THOSE KIND OF ADVERSE CONDITIONS.
POLICIES AND PRACTICES, THEY'VE GOT TOE BE COHESIVE.
ALL OF THEM HAVE TO FIT TOGETHER.
EVERYTHING WE'RE DOING ON THE CAPITOL PLANNING SIDE TO EVERYTHING WE'RE DOING ON THE OPERATING BUDGET SIDE, THEY'VE GOT TO FIT TOGETHER.
A GOOD EXAMPLE OF THAT IS YOU WOULDN'T RANT TO HAVE REALLY, REALLY -- WOULDN'T WANT TO HAVE REALLY AGGRESSIVE FORECAST WITH A REALLY LOW RESERVE TARGET.
THAT'S OBVIOUSLY NOT GOING TO WORK.
SO THEY'VE GOT TO ACTUALLY FIT TOGETHER FROM AN ASSUMPTIONS STANDPOINT.
AT THE END, ALL OF THAT DOES CONTRIBUTE TO OUR CREDIT PROFILE.
SO WE GO TO THE CREDIT AGENCIES.
IT'S A BIG PIECE TO -- HOW THEY VIEW US AND HOW WE MANAGE THE ORGANIZATION.
IN TERMS OF OUR CURRENT FINANCIAL POLICIES, I'LL RUN THROUGH THESE REAL QUICK.
THERE'S SEVERAL TIED DIRECTLY TO THE GENERAL FUND.
WE TALK ABOUT MANAGING THE STRUCTURAL BALANCE, ALL THAT MEANS IS WE WANT TO MAKE SURE ON AN ANNUAL BASIS OUR ANNUAL REVENUES ARE CLOSE TO COVERING OUR ANNUAL EXPENDITURES.
SO THAT WE'RE NOT RELYING ON A LOT OF FUND BALANCE FROM YEAR TO YEAR, WE'RE EVENTUALLY THAT'S GOING TO CAUSE AN ISSUE.
BECAUSE FUND BALANCE IS A ONE-TIME SOURCE VERSUS WE WANT TO BE RELYING ON ONGOING REVENUES.
WE'VE PUT A TWO-YEAR BUDGET PLAN IN PLACE, AROUND 2,007.
THIS HAS WORKED REALLY WELL FOR US.
WE'VE SET IN PLACE ADDITION TO THE FIVE-YEAR FORECAST, THIS TWO-YEAR BUDGET PLAN, WE'RE TRYING TO SEE IF WE CAN BALANCE THAT SECOND YEAR.
SO AS WE MAKE DECISIONS ABOUT WHAT TO ADD OR ADJUST, WE'RE LOOKING AT THAT IMPACT IN THAT NEXT YEAR, SO THAT WE UNDERSTAND WHAT THAT IS, AND WE WANT TO BALANCE THAT OFF AS MUCH AS WE CAN.
THE OTHER ONE HERE, MAINTAIN PUBLIC SAFETY SPENDING BELOW 66%, AGAIN, THAT WAS SET IN ORDER TO TRY TO HAVE A TARGET TO NOT ALLOW PUBLIC SAFETY TO CROWD OUT OTHER CORE SERVICES WITHIN THE GENERAL FUND.
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AND THEN WE ALSO HAVE A TARGET HERE OF MAINTAINING A MINIMUM ENDING BALANCE IN THE GENERAL FUND OF 15%.OBVIOUSLY WE SET MODERATELY CONSERVATIVE REVENUE PROJECTIONS, SO THE GOAL IS WE'RE GOING TO DO BETTER THAN THE MINIMUM 15%, BUT WE WANT TO HAVE FROM A FUND BALANCE PERSPECTIVE, AT LEAST 15% THERE TO THE EXTENT WE GENERATE MORE THAN 15%, OR WE END THE YEAR AT MORE THAN 15%, THAT WOULD BE AS PLANNED.
THAT MONEY IS PUT INTO PRODUCTION THE FOLLOWING FISCAL YEAR.
AND THEN TO THE EXTENT THERE'S ADDITIONAL DOLLARS WHEN WE CLOSE OUT THE AUDIT, THAT GOES OUT TO THE SUCCEEDING FISCAL YEAR.
SO THOSE DOLLARS AREN'T HELD, WE DON'T HOLD THEM IN RESERVE.
WE DO MAINTAIN A CONTINGENCY IN THE GENERAL FUND OF $1,000,000.3 MILLION IN THE CAPITAL BUDGET SIDE.
THAT'S REALLY JUST IF THINGS COME UP DURING THE FISCAL YEAR WE NEED TO MAKE ADJUSTMENTS WE'VE GOT SOMETHING WE CAN GO TO FOR THOSE HIGH PRIORITY ITEMS THAT MAY BE IDENTIFIED DURING THE FISCAL YEAR.
WE'RE GOING TO ADDRESS INTERNAL SERVICE FUND DEFICITS -- -- OR COMPANIES THAT PROVIDE SERVICES TO THE REST OF THE ORGANIZATION.
GOOD EXAMPLES OF THAT ARE I.T., WORKER'S COMP AUDIO] FUNDS THAT WE MANAGE.
DEPENDING UPON WHAT'S HAPPENING WITH THEM, THEIR ACTUARIAL EVALUATION, THINGS THAT GO ON WITH THOSE FUNDS, THEY CAN GET INTO A NEGATIVE POSITION, AND UNDER ACCOUNTING STANDARDS, WE'RE REQUIRED TO GET THEM BACK IN A POSITIVE POSITION WITHIN A REASONABLE PERIOD OF TIME.
WE'VE DEFINED IT AS THREE TO FIVE YEARS.
ON BOND RATINGS, YOU'VE SEEN THIS SCALE BEFORE.
THIS IS A SCALE FOR FITCH MOODY'S AND S & P, AAA BEING THE HIGHEST RATING YOU CAN GET.
WE JUST PUT THIS SLIDE IN HERE MORE FOR YOUR REFERENCE IN TERMS OF WHAT THE KALES LOOK LIKE FOR EACH OF THE -- SCALES LOOK LIKE FOR EACH OF THE ENTITIES.
AS A REMINDER, WE'RE AAA WITH BOTH MOODIES AND STANDARD AND PORES.
IF YOU LOOK AT ABOUT $2.5 BILLION IN ISSUANCES, WHICH IS ABOUT WHAT WE'VE DONE SINCE 2007, YOU CAN SEE THAT A ONE NOTCH DOWNGRADE IS ABOUT 17.5 MILLION TO $37.5 MILLION IN IMPACT, AND WHEN WE'RE TALKING ABOUT THIS, WE'RE REALLY TALKING ABOUT ALL THREE OF THEM DOWNGRADING US, NOT ONE.
SO WE'RE TALKING ABOUT TODAY WE HAVE A SPLIT RATING WHERE WE HAVE A AAA WITH TWO OF THE ENTITIES AND A DOUBLE A PLUS WITH ONE OF THE ENTITIES.
THIS REALLY ALLOWS US -- THIS REALLY LOOKS AT IF WE WERE TO BE DOWNGRADED BY ALL THREE.
THIS SHOWS IF WE WERE DOWNGRADED SEVERAL LEVELS.
SO SOME OF THE THINGS THAT HAVE CHANGED IS WE LOOK AT THIS LAST LEGISLATIVE SESSION, ONE OF THE BIGGEST CHANGES COMING OUT OF THAT IS SB 2, THE PROPERTY TAX REFORM BILL, AND ESSENTIALLY JEFF TALKED ABOUT THIS LAST WEEK, IT LOWERS THE ROLLBACK RATE FROM 8% DOWN TO 3.5%.
IT DOES GIVE US THE ABILITY TO DO SOME CARRY FORWARD.
SO IF YOU'RE UNDER THAT 3.5% CAP IN CERTAIN YEARS YOU CAN CARRY THAT FORWARD FOR A PERIOD OF THREE YEARS.
WE WERE HOPING THAT WAS GOING TO BE MORE ALONG THE LINES OF A FIVE-YEAR CARRY FORWARD, BUT DURING THE CONFERENCE COMMITTEES, THEY CUT IT DOWN TO A THREE-YEAR TIME FRAME.
IT MAKES IT CHALLENGING, BUT IT IS DEFINITELY SOMETHING THAT HELPS IF WE'RE COMING OUT OF A RECESSION OR PERIOD TO HELP US RECOVER.
ERIK MENTIONED BOTH MOODDI'S AND FITCH HAVE PUT OUT REPORTS ON SB 2.
MOODY'S REPORT LISTED IT AS BEING A CREDIT NEGATIVE.
WHEN YOU HAVE BOND RATING, YOU HAVE SOMETHING CALLED AN OUTLOOK, IT CAN BE NEGATIVE, STABLE OR POSITIVE.
OUR RATINGS ARE STABLE CURRENTLY.
THIS IS A BROADER REPORT THAT THEY PUT OUT THAT BASICALLY SAID FOR ENTITIES IN TEXAS THAT ARE IMPACTED BY SB 2 WE CONSIDER SB 2 TO BE A CREDIT NEGATIVE, BECAUSE IT IMPACTS OUR REVENUE-RAISING ABILITY WITHOUT HAVING TO GO FOR A PUBLIC VOTE.
SO THEY VIEW THAT AS LIMITING AND SOMETHING THAT WOULD BE CONSIDERED A NEGATIVE FACTOR.
BUT NOT NECESSARILY THAT THEY WOULD CHANGE THE RATING, THEY'RE GOING TO LOOK TO SEE HOW ENTITIES LIKE US ADJUST TO THIS NEW FINANCIAL REALITY WITH SB 2.
FITCH WAS PROBABLY A LITTLE BIT LONGER, THEY SAID THEY EXPECTED SB PS TWO -- SB 2 TO HAVE SOME IMPACTS ON ENTITIES.
THEY'RE GOING TO WAIT TO SEE HOW ENTITIES ADJUST TO THIS NEW PROPERTY TAX STRUCTURE.
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THE LEGISLATURE WAS SB 1152 WHICH IS COMPENSATION FOR USE OF THE PUBLIC RIGHT OF WAY, AND, AGAIN, THAT IMPACTS STARTING THIS SEPTEMBER, WHICH WOULD IMPACT US IN FY 2020, IS ABOUT A $7 MILLION REDUCTION IN GENERAL FUND BASE REVENUE.SO WHEN WE TALK ABOUT THINGS COMING OUT OF THE LEGISLATIVE SESSION, THESE ARE THINGS THAT CERTAINLY CHANGED THE FINANCIAL PARAMETERS THAT WE MANAGE WITHIN, SO THEY -- THEY ARE A RP WHY WE NEED TO LOOK AT AND POTENTIALLY CHANGE OUR FINANCIAL POLICIES TO ADJUST TO THIS NEW STRUCTURE.
THE OTHER THING THAT HAS CHANGED FROM A PARAMETERS PERSPECTIVE IS LAST NOVEMBER WITH THE PASSAGE OF PROPOSITION C, YOU RECALL THAT THE FIRE UNIT HAS A UNILATERAL ABILITY TO CALL FOR BINDING ARBITRATION.
THAT DOES CHANGE THE RISK PROFILE FOR US, AND IT LIMITS TO SOME DEGREE EXPENDITURE FLEXIBLE.
THAT WAS ONE OF THE THINGS THAT FITCH NOTED WHEN THEY DOWNGRADED US FROM AAA TO AA PLUS DECEMBER OF LAST YEAR.
S & P AND MOODY'S HAVE TAKEN THE POSITION THAT THEY'RE GOING TO WAIT AND SEE HOW IT IMPACTS THE CITY, BOTH OUR FINANCIAL POSITION, OR WHAT HAPPENS IN THE FUTURE WITH THE FIREFIGHTERS, HOW THAT IMPACTS OUR FINANCIAL POSITION GOING FORWARD.
THEY'LL LOOK AT ALL OF THAT GOING FORWARD AS WE LOOK AT FUTURE RATINGS.
A LITTLE MORE INFORMATION ON THE TAX RATE, WHEN WE SET THE PROPERTY TAX RATE, WE'RE DOING IT IN TWO COMPONENTS.
WE'RE DOING WHAT'S CALLED THE MAINTENANCE AND OPERATIONS TAX RATE.
THAT'S THE PROPERTY TAX REVENUE THAT GOES INTO THE GENERAL FUND TO SUPPORT BASIC SERVICES.
WE ALSO HAVE SEPARATE CALCULATION THAT WE DO FOR DEBT SERVICE.
THIS GOES INTO SUPPORT OUR BOND PROGRAM AND OUR PROPERTY TAX SUPPORTED DEBT THAT IS TIED TO OUR CAPITAL BUDGET.
IT HAS NOTHING TO DO WITH BONDS OR THINGS THAT WE ISSUE FOR THE AIRPORT OR ANY OF OUR OTHER ENTERPRISE FUNDS.
THIS IS ONLY AS IT RELATES TO PROPERTY TAX SUPPORTED DEBT.
YOU CAN SEE THAT OUR RATE FOR 2019 IS JUST UNDER 35 CENTS FOR THE GENERAL FUND SIDE AND 21 CENTS FOR THE DEBT SERVICE SIDE.
FOR JUST UNDER 56 CENTS FOR THE TOTAL TAX RATE.
THIS GIVES YOU SOME PERSPECTIVE ON HOW WE HAVE MANAGED THE TAX RATE AND ONE OF THE FINANCIAL PARAMETERS THAT WE'VE BEEN WORKING UNDER.
THIS IS THE TOTAL TAX RATE, SO IT'S BOTH THE M & O, THE GENERAL FUND COMPONENT AND THE DEBT SERVICE COMPONENT, GOING BACK TO 1994.
AND YOU CAN SEE THAT THAT TOTAL TAX RATE HAS ACTUALLY FALLEN OVER TIME.
IT'S ACTUALLY BEEN DECREASED SEVEN TIMES OVER THIS PERIOD OF TIME, BUT IT'S NOT BEEN INCREASED.
AND WE'LL TALK ABOUT WHAT IT LOOKS LIKE ON A SUBSEQUENT SLIDE WHEN YOU LOOK ATTACKSABLE VALUE CHANGES.
WE'VE NOT INCREASED THE TAX RATE, WE'VE HELD IT EITHER CONSTANT OR IN SOME CASES EVEN LOWERED IT.
THIS IS THE TAXABLE VALUE FROM YEAR TO YEAR.
YOU'VE SEEN THIS SLIDE BEFORE, THIS IS CHANGED FROM 2010 TO 2019.
WE OBVIOUSLY ARE GOING THROUGH A RECESSION FROM 2010 TO 2013, WE START TO RECOVER IN 2014, YOU'LL RECALL PROPERTY TAXES DO LAG THE ECONOMY, SO -- PROPERTY SIDE AS WE COME OUT OF THIS, BUT THEN YOU CAN SEE THE PREVIOUS SLIDE DURING THIS TIME FRAME AND OUR REVENUES WERE ACTUALLY DECLINING, I'LL SHOW YOU IN A SECOND WHAT THAT LOOKED LIKE, WITH THE EXPECTATION THAT THEN WE CAN RECOVER ON THE OTHER SIDE.
WE'RE COMING OUT OF THE RECESSION, WE HAVE GROWTH ON THE BASE AND WE'RE ABLE TO RECOVER.
WITH THE NEW ROLLBACK RATE, IT NOW CAPS THAT RECOVERY AT 3.5%.
SO IF WE LOOKED AT ACTUAL AVERAGE GROWTH ON THE BASE OVER THIS ENTIRE PERIOD OF TIME FROM 2010 TO 2019, IT'S 2.2%.
IF I TAKE THIS SAME TIME FRAME AND I PUT IN PLACE THE 3.5% ROLLBACK AND OUR CURRENT FINANCIAL POLICY SAYING WE'RE --
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THERE WAS THIS MISCONCEPTION THAT CITIES WERE RAISING THE BASE TAX BY 8% EVERY YEAR.YOU WOULD HERE LEGISLATOR REFER TO SAN ANTONIO GREW THAIF TAX LEVY BY 4% OVER THE PAST FOUR YEARS.
THAT'S TRUE, BUT THAT'S BECAUSE OF NEW IMPROVEMENTS.
NEW IMPROVEMENTS HAVE NOTHING TO DO WITH BASE VALUES.
SO IF YOU LOOK AT 2014 TO 2019, OUR GENERAL FUND TAX LE VELING -- AVERAGE OF 7.3% ANNUALLY, BUT IF YOU GO TO THE PRIOR FIVE YEARS, THE TOTAL TAX LEVY INCLUDING NEW IMPROVEMENTS THROUGH BY 3.7% IN -- IN AUDIO] -- REVENUE IN 2009 IS LESS THAN 2010, '11, '12, '13 IS BARELY -- BARELY OVER WHERE WE WERE IN 2009.
SO WE'RE ABLE TO MANAGE IN THAT TIME FRAME, AGAIN, WITH THE EXPECTATION THAT THERE'S GOING TO BE RECOVERY AS WE COME OUT OF THE RECESSION AND THAT WE'LL BE ABLE TO CAPTURE SOME OF THAT BASE VALUE GROWTH WITH THE 3.5% CAP IN PLACE, THAT CHANGES IT.
OVERALL, IF YOU LOOK AT THIS ENTIRE PERIOD OF TIME, INCLUDING NEW IMPROVEMENTS, SO IT'S GOT BASE VALUES AND NEW IMPROVEMENTS IN HERE, THE AVERAGE ANNUAL INCREASE OVER THAT PERIOD OF TIME, 4%, SO NOT A LOT OF WHAT YOU HEARD IN TERMS OF BEING CLOSE TO 8% YEAR OVER YEAR.
WE CERTAINLY HAVEN'T BEEN THERE.
IMPACT OF SB 2, DID WANT TO SHOW YOU THIS REAL QUICKLY.
IT'S A -- IT'S A ROLLBACK RATE CAP, AND HOW THEY CAP YOUR REVENUES IS IT'S AN IMPACT OR IT'S A CHANGE TO THE TAX RATE.
SO IF I LOOKED AT THE LAST FIVE YEARS GOING BACK TO 2015, WE'VE HAD REALLY STRONG BASE VALUE GROWTH.
WHEN WE RUN THAT THROUGH THIS SB 2 MODEL NOW WITH CAPPED AT 3.5%, OUR ACTUAL TAX RATE HAS BEEN 35.4 CENTS IN 2015, AND THEN A LITTLE OVER 34.5 CENTS FROM 2016 TO 2019.
WHEN THE 3.5 ROLLBACK RATE IS IN PLACE, OUR M & O TAX RATE IS FALLING.
SO WHILE WE WERE ABLE TO HOLD OUR TAX RATE AND WE DECREASED IN 2016, BECAUSE WE WERE ACTUALLY OVER THE 8% ROLLBACK THAT YEAR, SO WE DID DECREASE IT, WE'VE HELD IT CONSTANT SINCE THEN. WE WILL BE OVER THE -- WE WOULD HAVE BEEN OVER THE 3.5 ROLLBACK RATE IN EVERY ONE OF THESE YEARS, SO OUR TAX RATE INSTEAD OF BEING 34.677 CENTS TODAY WILL BE 31 CENTS.
AND THAT WILL BE THE CASE EVERY YEAR THAT BASE VALUES EXCEED 3.5%, IT WILL PUSH THE TAX RATE DOWN.
THE NEW IMPROVEMENTS ARE OUTSIDE OF THIS CALCULATION.
IT WILL HAVE A LITTLE BIT OF IMPACT ON NEW IMPROVEMENT TS -- IMPROVEMENTS FROM THE STANDPOINT IF YOU HAD $2 BILLION OF NEW IMPROVEMENTS COMING ONLINE IN 2015 AT A TAX RATE OF 35 CENTS THE SAME AMOUNT COMING ON LINE IN 2009, YOUR TAX RATE IS NOW 31 CENTS.
SO THE AMOUNT OF MONEY YOU'RE GOING TO GENERATE OFF OF NEW IMPROVEMENTS IS -- AUDIO] HAVING SAID ALL OF THAT, THE PARAMETERS HAVE REALLY CHANGED.
I MEAN, LEGISLATIVELY WE'VE HAD A BIG CHANGE IN RIGHT OF WAY COMPENSATION THAT'S GOING TO AFFECT US NEXT YEAR.
SB 2 IS A REALLY BIG FUNDAMENTAL CHANGE IN TERMS OF HOW WE WILL LOOK AT PROPERTY TAXES.
AND, AGAIN, ANY TIME WE'RE OVER 3.5% FROM A BASE VALUE PERSPECTIVE, THE M & O TAX RATE IS GOING TO FALL.
SO WHAT WE'D LIKE TO PROPOSE TO YOU IN TERMS OF CHANGES TO THE FINANCIAL POLICY, FIRST WE'D RECOMMEND THAT WE MAINTAIN OUR CURRENT FINANCIAL POLICIES, BUT THEN ON THE -- PIECE, NOT THE DEBT SERVICE PIECE, BUT REALLY THAT PIECE THAT'S IN THE GENERAL FUND, WE'VE GIVEN YOU A COUPLE OF DIFFERENT OPTIONS HERE.
OPTION 1 SAYS YOU WOULD ANNUALLY ADDRESS THAT M & O PROPERTY STATE IMPOSED ROLLBACK RATE OF 3.5% IN AUDIO] OUR GROWTH IS GOING TO BE MORE THAN 3.5%, WE'RE GOING TO CUT BACK TO 3.5 ANYWAY, OR YOU HAVE TO GO TO -- THOSE ARE REALLY YOUR ONLY OPTIONS.
SO THIS IS REALLY GEARED MORE TOWARDS THOSE YEARS WHEN WE'RE NOT AT 3.5% BASE VALUE GROWTH, COULD WE ADJUST THE TAX RATE TO THE 3.5% CAP IN THOSE YEARS TO HELP MITIGATE SOME OF THE IMPACT HERE.
THE SECOND OPTION SAYS -- WE WOULD ANNUALLY REVIEW THAT STATE-IMPOSED ROLLBACK RATE OF 3.5% WHEN WE'RE LESS THAN 3.5% -- PROPERTY TAX THAT WILL GET CARRIED FORWARD SO WE'LL BE ABLE TO LOOK AT THAT.
WE CAN LOOK AT CERTAINLY SOME OF THE CITY COUNCIL PRIORITIES AND IMPACTS TO TAXPAYERS AND MAKE OUR RECOMMENDATION IN THE
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BUDGET.BOTH OF THESE RECOMMENDATIONS ARE REALLY GEARED AT, YOU KNOW, AGAIN, OUR PRACTICE HAS BEEN HOLD THE TAX RATE, BOTH IN TERMS OF WHEN WE GO THROUGH RECESSIONS AND WE'RE ACTUALLY BELOW ON PROPERTY TAX REVENUE WE'VE HELD THE TAX RATE, BUT THEN WE'VE HELD IT WHEN WE'VE HAD GROWTH.
THIS IS MORE OF A POLICY THAT SAYS WE'RE GOING TO BE LOOKING AT IT ANY TIME IT'S LESS THAN 3.5, WE'RE EITHER GOING TO DO IT ANNUALLY AND MAKE THE RECOMMENDATION FROM A PLANNING PERSPECTIVE OR OPTION 1 IS WE'RE GOING TO ASSUME WE'RE GOING TO DO TO THAT 3.5 IF IT'S LESS THAN 3.5.
BUT THAT THERE'S A WILLINGNESS TO DO THAT AND SOMEWHAT OFFSET THE IMPACT.
WE'RE NOT GOING TO COMPLETELY OFFSET THE IMPACT.
THIS IS A BIG CHANGE GOING FROM 8 TO 3 .5.
JUST BECAUSE OF THE COMPOUNDING WHEN YOU HAVE GROWTH ON BASE VALUES, YOU CAN'T REPLICATE -- AUDIO] -- BUT THIS WOULD GIVE YOU A TOOL TO BE ABLE TO ALLOW US TO MANAGE THIS IN THE CONTEXT OF THE BROADER BUDGET.
ONE OF THE OTHER THINGS WE TALKED ABOUT WAS CLEARLY LOTS OF CONVERSATIONS ABOUT PROPERTY -- -- OPTIONS WE HAVE UNDER CURRENT STATE LAW IS A LITTLE BIT HARDER TO TARGET THEM INTO PARTICULAR AREAS THAT MAY BE EXPERIENCING GREATER GROWTH, BUT WE WOULD LOOK AT THOSE ON AN ANNUAL BASIS AND THEN CERTAINLY GOING INTO THE NEXT LEGISLATIVE SESSION, MAYBE -- AUDIO].
THE OTHER ONE IS WE WOULD ANNUALLY REVIEW AND PERIODICALLY ADJUST FEES FOR COST RECOVERY, INFLATION AND/OR ALIGNMENT WITH COMPARABLE CHARGES -- IN AUDIO] -- VIEWING THOSE AND BRINGING THOSE FORWARD TO YOU AT THE END OF THE DAY, YOU'RE GOING TO LOOK AT THEM IN THE CONTEXT OF THE ENTIRE BUDGET.
WE'LL MAKE RECOMMENDATIONS TO YOU IN THE CONTEXT OF THE ENTIRE BUDGET, BUT WE THINK IT'S -- PROPERTY TAX RELIEF PRESENTATION.
SO ON THE PROPERTY TAX RELIEF -- COUNCILMAN COURAGE AND COUNCILMAN PERRY, THAT REQUESTED WE STUDY AND LOOK AT THE ESTABLISHMENT OF A GENERAL HOMESTEAD EXEMPTION, THAT WE LOOK AT OVER AGE 65 EXEMPTION AND DECREASING OUR DISABLED PERSONS EXEMPTION -- AUDIO] -- $65,000 OVER AGE 65 EXEMPTION AS WELL AS A 12,005 -- WHEN YOU TURN 65, $65,000 OF TAXABLE VALUE OF YOUR HOME BECOMES NONTAXABLE.
SO YOUR TAX BILL'S GOING TO GO DOWN BECAUSE OF THAT, AND THEN WHATEVER THAT NEW DOLLAR VALUE IS THAT GETS CALCULATED, IT GETS FROZEN.
SO THE VALUE DOESN'T GET FROZEN, THE ACTUAL DOLLAR PROPERTY TAX BILL GETS FROZEN AT THAT POINT AND DOESN'T CHANGE.
SO BETWEEN ALL OF THOSE EXEMPTIONS THAT WE OFFER FOR 2019, WE'LL FOREGO ABOUT $52 MILLION IN PROPERTY TAX REVENUES FROM BOTH THESE EXEMPTIONS AND THE FREEZE.
JUST A LITTLE BIT OF STATISTICS ON THE PROPERTY TAX SIDE.
THERE'S JUST 73,000 PARCELS WITHIN THE CITY OF SAN ANTONIO.
ABOUT HALF AND HALF ARE COMMERCIAL AND RESIDENTIAL.
OF THE RESIDENTIAL, 44% OF THOSE HAVE REACHED AGE 65 OR UNDER A DISABLED EXEMPTION -- THEIR PROPERTY TAX BILL, THE DOLLAR VALUE HAS BEEN FROZEN OR IS FROZEN.
WE'VE GOT ABOUT 96,500 OVER AGE 65, JUST UNDER 8800 DISABLED EXEMPTION, AND THEN WE HAVE JUST UNDER 24 HOW DISABLED VETERAN OR OTHER STATUTORY EXEMPTIONS.
IN TERMS OF THE HOMESTEADS, 236,754 HOMESTEADS, BROKEN DOWN BY YEARS IN THE HOME.
SO IF YOU LOOK AT IN TOTAL -- LOOK AT THEM BY BAND, THOSE THAT HAVE BEEN IN THEIR HOME FOR MORE THAN 30 YEARS, WE'VE GOT 94% OF THOSE THAT HAVE REACHED AGE 65 AND THEIR TAXES ARE FROZEN, AND THEN IF YOU LOOK AT -- WE'VE GOT 71% OF THOSE IN THAT BAND THAT ARE -- HAVE REACHED AGE 65 AND ARE FROZEN.
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SOME OF THE QUESTIONS COME UP ABOUT, YOU KNOW, THAT'S WHAT WE DO.WHAT DOES IT LOOK LIKE FOR THE OTHER TAXING ENTITIES, BECAUSE WE'RE ONLY 21% OF THE TAX BILL.
THIS SLIDE JUST BREAKS THAT DOWN FOR YOU.
YOU CAN SEE THAT THE SCHOOL DISTRICTS HAVE A HOMESTEAD EXEMPTION AND SARAH HAS A HOMESTEAD EXEMPTION.
THE OTHER TAXING ENTITIES HERE DO NOT.
ALL OF THEM OFFER AN OVER AGE 65, AND DISABLED EXEMPTION WITH THE EXCEPTION OF THE UNIVERSITY HEALTH SYSTEM AND ALL HAVE THE SENIOR TAX FREEZE WITH THE EXCEPTION OF THE UNIVERSITY HEALTH SYSTEM AND THE SAN ANTONIO RIVER AUTHORITY.
THIS IS JUST A QUICK EXAMPLE TAX BILL HERE, SO THIS IS TWO HOMEOWNERS, BOTH HAVE A HOMESTEAD AT $200,000.
ONE IS AT AGE 64, ONE IS AT AGE 65.
YOU CAN SEE WHEN YOU LOOK AT THE CITYTY PORTION OF THE BILL HERE AT $1,100 BASED ON THAT $200,000 HOME, THAT WHEN YOU TURN 65, THAT TAX BILL IS GOING TO DROP BECAUSE $65,000 OF THAT HOME IS NO LONGER CONSIDERED TAXABLE, AND THAT 754-DOLLAR TAX BILL FOR THE CITY IN THIS CASE BECOMES FROZEN.
SO WHILE THE VALUE OF THE HOME MAY CONTINUE TO GO UP, THE TAX BILL WILL CONTINUE TO BE $754.
THESE FEES LISTED HERE BECAUSE ALL OF THEM ARE FROZEN WITH THE EXCEPTION OF SARAH AND THE UNIVERSITY HEALTH SYSTEM.
SO THIS IS A SIGNIFICANT FORM OF TAX RELIEF WHEN YOU GET TO THIS POINT BECAUSE AT THAT POINT IT IS LOCKED IN AT A DOLLAR VALUE AND IT REALLY DOESN'T MATTER WHAT THE INCREASE ON THE VALUE OF THE HOME IS BECAUSE IT'S NOT GOING TO CHANGE IN TERMS OF THE ACTUAL TAX BILL.
WE'VE KIND OF ALREADY TALKED ABOUT THAT.
SO WHEN WE TALK ABOUT SB 2 IMPACT, WHEN WE LOOK AT THAT 10-YEAR PERIOD THAT I WAS SHOWING YOU IN TERMS OF TAXABLE VALUE AND WE ASSUME THAT 3.5 ROLLBACK RATE WAS IN PLACE WITH THAT THREE-YEAR CARRYFORWARD, THE LOSS TO THE CITY CUMULATIVELY WAS $81 MILLION, THE GENERAL FUND WOULD BE THIS YEAR AUDIO] PROPERTY TAX SAVINGS TO THE HOMESTEAD IS ABOUT 98 CENTS A MONTH.
WE'RE ALSO ASKED TO LOOK AT SOME OPTIONS ON THE OVER AGE 65 AND DISABLED EXEMPTIONS.
WE GAVE YOU A COUPLE OF DIFFERENT OPTIONS, AGAIN, TODAY ON OUR AGE 65 EXEMPTION, WE'RE AT $65,000 GOING TO $75,000 OR 100,000, THAT IMPACT WOULD BE $4 MILLION FOR $75,000 OPTION.
12.7MILLION FOR $100,000 OPTION.
AND WE DID THE SAME THING FOR THE DISABLED EXEMPTIONS, WE GAVE YOU A COUPLE OF DIFFERENT OPTIONS THERE IN TERMS OF INCREASING IT.
I'LL SAY WHEN YOU'RE CONSIDERING PROPERTY TAX RELIEF FROM A POLICY -- IN AUDIO] -- TO THE MOST HOMEOWNERS, I DON'T KNOW THAT IT'S HERE, BECAUSE IN THIS CASE, REMEMBER, THEY'RE ALREADY FROZEN.
SO ONCE THEY REACH AGE 65, YOU'RE GETTING A LOWER TAX BILKER IT'S GOING TO GO DOWN BECAUSE OF THE EXEMPTION AMOUNT, AND THEN AT THAT POINT, THE DOLLAR VALUE GETS FIXED.
SO YOU HAVE TO FOREGO A LOT OF REVENUE HERE, AND IT MAY NOT HAVE AS MUCH OF AN IMPACT AS MAYBE WHAT YOU'RE LOOKING FOR.
ON THE HOMESTEAD EXEMPTION REQUIREMENTS, THESE ARE STATUTORY REQUIREMENTS.
IT HAS TO APPLY TO ALL HOMESTEADS REGARDLESS OF VALUE.
YOU CAN'T ADOPT IT AS A DOLLAR AMOUNT, ONLY AS A PERCENTAGE.
IT HAS TO BE A MINIMUM OF $5,000, SO YOU CAN DO A VERY SMALL PERCENTAGE, BUT THAT MINIMUM THEN CONVERTS TO A $5,000 EXEMPTION.
AND YOU CAN GO UP TO 20% OF THE APPRAISED VALUE.
KEEP PART HERE IS THAT IF YOU WANTED TO DO A HOMESTEAD EXEMPTION FOR FY 2020, YOU ALL WOULD HAVE TO TAKE ACTION AS A BODY BEFORE JULY 1ST SO THAT WE COULD NOTIFY THE BEXAR APPRAISAL DISTRICT OF YOUR INTENT TO OFFER A HOMESTEAD EXEMPTION FOR NEXT FISCAL YEAR.
AS THE CITY MANAGER MENTIONED, YOU'D HAVE THAT OPTIONTO DO THAT DURING THE GOAL-SETTING SESSION ON JUNE 21ST IF THAT'S THE DIRECTION WE GET.
WE COULD POST THAT ITEM FOR ACTION AND DURING THE GOAL-SETTING SESSION YOU COULD CONSIDER THAT ITEM.
THE NEXT SLIDE YOU'VE SEEN BEFORE, THESE ARE JUST THE DIFFERENT OPTIONS.
A COUPLE OF DIFFERENT OPTIONS AT DIFFERENT LEVELS HERE, AND THE ESTIMATED IMPACT TO THE CITY AS WELL AS THE ESTIMATED IMPACT OR SAVINGS TO THE HOMEOWNER. THE 178929 IS OUR AVERAGE HOMESTEAD.
OUR COSA TAX BILL IS OVER ON THE THIRD COLUMN THERE, AND YOU CAN SEE THE FIRST OPTION WE'RE GIVING YOU IS THE MINIMUM OPTION.
SO THE WAY YOU WOULD DO THAT IS YOU WOULD AT DON'T A HOMESTEAD EXEMPTION OF A TENTH OF A PERCENT.
THAT WOULD TRIGGER THE MINIMUM REQUIREMENT SO EVERYBODY WOULD END UP GETTING A $5,000 HOMESTEAD EXEMPTION.
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$3.6 MILLION IN THE GENERAL FUND, ABOUT $2.2 MILLION IN DEBT SERVICE.THAT WOULD IMPACT CAPACITY GOING FORWARD FOR A TOTAL OF ABOUT 5.9 MILLION.
THE SAVINGS IS $28 ACROSS THE BOARD THERE AGAIN BECAUSE IT'S NOT CHANGING, IT'S A $5,000 MINIMUM.
AS YOU GO TO THE RIGHT, FIVE, 10, AND 20% OPTIONS, YOU CAN SEE THAT THE DOLLARS WILL CHANGE BECAUSE IT'S A PERCENTAGE OF THE HOMESTEAD, AND THEN YOU CAN SEE THE IMPACT TO THE CITY STARTING GETTING MORE SIGNIFICANT IN TERMS OF LOST REVENUE TO THE CITY, BOTH IN TERMS OF THE GENERAL FUND AND OUR DEBT SERVICE FUND.
ALSO KEEP IN MIND THAT AS YOU LOOK AT THIS, YOU KNOW, ONE OF THE OTHER BIG CHANGES WAS THAT TELECOM CABLE FRANCHISE COMPENSATION FOR USE OF THE RIGHT OF WAY, SO YOU CAN KIND OF TAKE THE GENERAL FUND LINE ITEM THAT I'VE PUT HERE AND YOU CAN ADD $7 MILLION TO THAT ALL THE WAY ACROSS.
THAT'S THE IMPACT THAT WE WOULD BE LOOKING AT, BECAUSE THAT'S ALREADY IN PLACE AND WOULD BECOME EFFECTIVE IN SEPTEMBER.
WE ALSO WERE ASKED TO LOOK AT THE TAX RATE REDUCTION OPTIONS HERE, SO WE GAVE YOU EVERYTHING FROM A QUARTER CENT UP TO ONE CENT.
WE MADE THE ASSUMPTION HERE THAT THAT WOULD ALL BE IN THE GENERAL FUND, WHETHER YOU DO THAT DIFFERENTLY AND IT PACT TO THE DEBT SERVICE FUND, THAT WOULD IMPACT CAPACITY TO A GREATER EXTENT.
BUT THIS GIVES YOU AN IDEA OF THE IMPACT.
I'M GOING TO GO TO THE FAR RIGHT.
IF WE REDUCED THE TAX RATE BY ONE CENT IT COULD COST US $11.2 MILLION.
IF YOU LOOK AT SAVINGS TO THE AVERAGE HOMESTEAD, IT'S ABOUT $18.
GO BACK TO THE PREVIOUS SLIDE.
IF YOU LOOK AT THE MINIMUM OPTION THAT'S LISTED THERE FOR THE $5,000, YOU CAN SEE WE CAN HAVE A 28-DOLLAR IMPACT TO HOMESTEADS WITH THE MINIMUM OPTION FOR ABOUT $5.9 MILLION VERSUS A 17 OR $18 MILLION IMPACT HERE TO THE AVERAGE HOMESTEAD WITH A ONE CENT REDUCTION AND $11 MILLION LOSS IN REVENUES.
THE REASON THAT IS IS ONCE WE REDUCE THE TAX RATE, THAT GOES TO THE ENTIRE TAX BASE, BOTH COMMERCIAL, RESIDENTIAL, EVERYTHING THAT'S ON THE TAX ROLL.
THE HOMESTEAD IS FOCUSED JUST TO HOMEOWNERS AND HOMESTEADS, SO THAT'S WHY YOU SEE THE DIFFERENCE THERE.
SO IN SUMMARY, WE'LL FOREGO ABOUT $52 MILLION IN PROPERTY TAX RELIEF THIS YEAR.
ABOUT 44% OF OUR HOMESTEADS ARE FROZEN BECAUSE THEY'VE REACHED AGE 65 OR ARE DISABLED.
WE'VE GOT A NEW ROLLBACK RATE STARTING AT -- WE'VE GOT A NEW ROLLBACK RATE OF 3.5% STARTING IN 2021.
OUR EXISTING MAINTENANCE AND OPERATION OR GENERAL FUND PROPERTY TAXES WILL NOT GROW BY 3.5% WITHOUT AN ELECTION, SO REGARDLESS OF WHAT BASE VALUES ARE DOING, WE CAN'T GO ABOVE THAT. AND WE'RE GOING TO FOREGO ABOUT $7 MILLION IN BASE GENERAL FUND REVENUES BEGINNING IN FY 2020.
THE LAST THING I DID WANT TO MENTION, TOO, IS THAT DURING THE FORECAST, WE MENTIONED TO YOU THAT CPS WAS DOWN PRETTY SIGNIFICANTLY THIS FISCAL YEAR, ABILITY NINE -- ALMOST EIGHT, $9 MILLION AT FORECAST TIME.
IT HAS -- WE'VE MISSED THE LAST TWO MONTHS AS WELL, SO THAT NUMBER HAS NOW GROWN TO $11 MILLION.
AGAIN, WE SET MODERATELY CONSERVATIVE REVENUE PROJECTIONS.
OUR GOAL IS THAT WE'RE GOING TO OUTPERFORM THOSE.
THAT HAS NOT BEEN THE CASE THIS YEAR BECAUSE THE WEATHER HAS NOT BEEN VERY COOPERATIVE, I GUESS DEPENDING ON HOW YOU LOOK AT IT.
IT'S BEEN REALLY COOL AS OPPOSED TO BEING HOT.
FROM A REVENUE STANDPOINT, IT HASN'T BEEN REALLY COOPERATIVE.
FUEL PRICES HAVE BEEN REALLY LOW.
SO ONE OF THE THINGS WE'LL BE DOING, IN SOME RESPECTS, SOME OF THIS IS ANOMALY.
RIGHT? YOU WOULDN'T EXPECT TO HAVE A DAY WHERE YOUR HIGH IS 79 IN JUNE, BUT WE HAD THAT ON MONDAY.
SO SOME OF THAT IS IMPACTING THIS, SO SOME OF THIS, I WOULD CONSIDER TO BE ONE-TIME.
SO WE'RE LOOKING AT THE CPS FORECAST, WE'RE LOOKING AT THIS YEAR, WE'RE LOOKING AT NEXT YEAR, WHAT -- YOU KNOW, WHAT'S THE PROBABILITY THAT WE'RE GOING TO HIT THE TOARKT GOING FORWARD -- FORECAST GOING FORWARD, AND WE DO HAVE THE OPTION THAT WE'RE LOOKING AT IN TERMS OF IF THIS IS MORE OF A ONE-TIME ISSUE, WE DON'T HAVE A RESERVE FOR REVENUE LOSS, BUT IF THIS IS A MORE OF A ONE-TIME ISSUE, LOOKING AT POTENTIALLY SHIFTING THINGS, SOMETHING LIKE STREET MAINTENANCE OR SOMETHING OUT OF THE GENERAL FUND TO OFFSET THIS FOR THIS ONE YEAR, UNDERSTANDING THAT THIS IS MAYBE MORE OF ANOMALY, NOT AN ONGOING RECURRING ISSUE THAT WE'VE GOT TO DEAL WITH.
SO THAT'S SOMETHING WE'LL BE WORKING ON OVER THE COURSE OF THE SUMMER IS LOOKING AT UPDATING THAT CPS FORECAST, GETTING THE CERTIFIED ROLL FROM THE APPRAISAL DISTRICT AND THEN UPDATING OUR DEBT PLAN/CAPITAL PLAN, TO SEE CAN WE MOVE SOME OF THIS OVER TO CREATE SOME ROOM TO DEAL WITH THIS ONE-TIME ISSUE WE'RE DEALING WITH CPS REVENUES THIS YEAR.
SO MAYOR, WITH THAT, CONCLUDES MY PRESENTATION ON THOSE TWO ISSUES AND I'D BE HAPPY TO ANSWER QUESTIONS.
AND TOO CLARIFY, ERIK, THESE ARE THE TWO PRESENTATIONS FOR
[00:40:01]
TODAY? THAT'S WHERE WE'RE GOING TO END? JUST LOOKING FOR DIRECTION HERE.>> WALSH: THESE ARE THE TWO WE'RE LOOKING FOR SOME DIRECTION ON.
PART 2 ARE THE INFRASTRUCTURE AND --
>> WE'RE GOING TO DO THAT TODAY, TOO?
>> MAYOR NIRENBERG: VERY HELPFUL PRESENTATION.
SOME DIRECTION FROM COUNCIL ON TO BE CLEAR ON JULY -- ON JUNE 21ST, WE'LL HAVE AN ITEM POSTED THAT WOULD ALLOW US TO TAKE ACTION SHOULD THE COUNCIL DECIDE AT THAT POINT ON A NEW EXEMPTION ON THE PROPERTY TAX ROLLS.
THAT DECISION WILL BE MADE ON JUNE 21ST.
>> WALSH: YES, SIR, OR DEPENDING ON THE CONVERSATION GOES, ANY -- FOR AN EXEMPTION, YES.
IT NEEDS TO BE DONE BEFORE JULY 1ST.
>> WALSH: AND WE WOULD POST IT FOR THAT JUNE 21ST COUNCIL MEETING.
SO I EXPECT WE'RE GOING TO HAVE A HEALTHY DISCUSSION ABOUT IT TODAY, BUT WE'RE ALSO GOING TO GET MORE CLARITY AS IT RELATES TO THE BUDGET ON THE 21ST.
THE OTHER ITEM THAT WE DO NEED SOME DIRECTION FROM THE COUNCIL ON IS THE POLICY AS IT RELATES TO THE ADJUSTMENT YEAR TO YEAR BASED ON THE 3.5 ROLLBACK.
I THINK THE OPTIONS PRESENTED BY THE STAFF ARE PRETTY SOUND.
WE DO HAVE TO REMAIN FLEXIBLE AND THE WAY THE STATUTE IS NOW WRITTEN WITH THE BANKING ABILITY, I DO BELIEVE THAT WE NEED TO REVIEW THAT ANNUALLY TO SEE WHERE OUR NEEDS ARE AND CERTAINLY SHOULDN'T BE LOCKED IN TO JUST GOING TO THE CAP OR SAYING TO OURSELVES WE'RE NEVER GOING TO ANALYSIS JUST IT EITHER, SO I DO THINK WE NEED TO HAVE SOME FLEXIBILITY THERE.
I MEAN, I THINK WE'VE HEARD A NUMBER OF YEARS NOW HAVING ROLLED THE RATE BACK SEVERAL TIMES OVER THE LAST 25 YEARS, WE'RE TRYING TO PROVIDE PROPERTY TAX RELIEF TO OUR MOST VULNERABLE RESIDENTS, AND UNFORTUNATELY THE STATE LEGISLATURE HAS NOT PROVIDED US THE BEST TOOLS TO DO THAT, BUT WE HAVE WHAT WE HAVE.
AND SO I'M INTERESTED IN WHAT THE COUNCIL DISCUSSES THERE, BUT I DO THINK IT'S TIME WE DO LOOK AT THAT AND PROVIDE FOR AT LEAST A FIRST STEP IN A HOMESTEAD FOR OUR RESIDENTS.
SO EVERYTHING ELSE I AGREE 100%.
WE HAVE TO MAINTAIN OUR FISCAL POLICIES, OUR DISCIPLINE IS ONE OF THE REASONS WHY WE'RE ABLE TO TALK ABOUT THESE THINGS AS IT RELATES TO THE 66% OF PUBLIC SAFETY, OUR MINIMUM ENDING BALANCE OF 15%, IF ANYTHING WE SHOULD BE SAND BAGGING A LITTLE BIT RIGHT NOW, KNOWING THAT WHAT THE ECONOMIC CONDITIONS ARE MORE GLOBALLY AND I KNOW COUNCILMAN HALL HAS BROUGHT THIS UP BEFORE, BUT WE PERHAPS SHOULD BE TALKING ABOUT ADDING A HALF PERCENT TO THAT.
IT'S PROBABLY NOT THE RIGHT YEAR TO DO IT, BUT LOOKING AT OUR RESERVES GOING FORWARD, I THINK WE'D BE FOOLING OURSELVES TO THINK IF THIS IS GOING TO GET EASIER.
SO WITH THAT, I'M COMFORTABLE WITH WHERE THINGS ARE AND ANXIOUS TO HEAR MY COLLEAGUE'S COMMENTS AS WELL.
THANK YOU, BEN FOR THE PRESENTATION.
SO FOR THE CURRENT FINANCIAL POLICIES, YOU'RE SAYING TO MAINTAIN -- YOUR RECOMMENDATION IS TO MAINTAIN WHAT OUR CURRENT FINANCIAL POLICIES ARE, BUT THEN LOOKING AT THOSE TWO OPTIONS?
>> VIAGRAN: SO IS THAT ENOUGH, THOUGH?
>> GORZELL: THERE'S ACTUALLY THREE.
THERE IS THE TWO OPTIONS ON PROPERTY TAX RATE MANAGEMENT THAT WE'D LIKE SOME FEEDBACK ON.
>> GORZELL: ONE WOULD BE TO ASSUME WE'RE GOING TO GO TO THE 3.5 ROLLBACK AND EVERY YEAR THAT WE'RE NOT -- EVERY YEAR THAT WE DON'T HAVE 3.5 GROWTH IN BASE VALUES, THAT WE WOULD GO TO 3.5 PERCENT.
MEANING YOU'D HAVE TO RAISE THE TAX RATE.
I'M GOING TO TALK ABOUT THAT IN A SECOND.
YOUR FIRST ONE IS THE 66%, BUT YOU'RE ALSO TELLING US THAT THE RATING AGENCIES ARE LOOKING AT US, WHAT ARE WE DOING TO COUNTER OR ELSE TO SHORE UP WHATEVER THE STATE JUST DID.
>> VIAGRAN: WHAT THE STATE PUT FORWARD.
BUT YOU'RE PUTTING FORWARD TO KEEP THE SAME POLICIES IN OUR GENERAL FUND AND WITH OUR OTHER, BUT JUST LOOKING AT THE PROPERTY TAX RATE.
AND SO IS -- WHAT I'M TRYING TO UNDERSTAND IS IS THAT THE ONE THAT THEY WILL BE LOOKING AT THE MOST, NOT NECESSARILY OUR OTHER FINANCIAL POLICIES OF THE STRUCTURAL BALANCE, ET CETERA, BUT THE OTHER OPTIONS THAT YOU'VE PUT FORWARD, THESE THREE OPTIONS.
>> GORZELL: THEY WILL BE LOOKING AT ALL OF IT, BUT THEY WILL CERTAINLY FOCUS ON THE GENERAL FUND BAWNS OF SB 2, AND WE'RE RECOMMENDING TO MAINTAIN THE CURRENT FINANCIAL POLICIES, BUT TO ADD IN ADDITIONAL POLICIES.
ONE ON PROPERTY TAX RATE MANAGEMENT.
>> GORZELL: THIS WOULD BE A DEVIATION FROM WHAT WE DO TODAY.
>> GORZELL: BECAUSE TODAY WE HOLD THE M & O GENERAL FUND TAX RATE REGARDLESS OF WHAT VALUES ARE DOING.
UNLESS WE EXCEED THE 8% TAX RATE, IT STAYS.
[00:45:01]
SO YOU HAVE TONS OF ROOM TO RAISE THE TAX RATE.WE HAVE HISTORICALLY NOT DONE THAT WITH THE ASSUMPTION WE CAN RECOVER.
THIS CHANGES THAT, OPTION 1, WE ASSUME WE'RE GOING TO GO TO THE 3.5% EVERY YEAR.
>> VIAGRAN: AND THAT WOULD BE JUST THE SAME THING WE'RE DOING RIGHT NOW.
SO OPTION 2 IS THE EVERY YEAR.
>> GORZELL: WE WOULDN'T MAKE THAT ASSUMPTION, BUT ANY YEAR WE'RE UNDER 3.5%, WE'D STUDY IT, LOOK AT IT AND BRING YOU A RECOMMENDATION.
>> GORZELL: AND THE ZERO THERD TWOA ARE ON -- OTHER TWO ARE ON SLIDE 16, I BELIEVE.
THIS KIND GOFFS WITH THE PROPERTY TAX -- GOES WITH THE PROPERTY TAX MANAGEMENT.
WE WOULD BE LOOKING AT THAT ANNUALLY AS WELL AND SOME OF THAT MAY BE INVOLVED GOING TO THE LEGISLATURE IN THE FUTURE AND LOOKING FOR ADDITIONAL OPTIONS AND TOOLS TO PROVIDE PROPERTY TAX RELIEF, BUT THIS WOULD BE A PIECE OF THAT.
THE OTHER ONE LISTED THERE IS WE HAVE A NUMBER OF FEES AND CHARGES THAT WE HAVE ACROSS THE ORGANIZATION AND IN THE GENERAL FUND THAT WE WOULD BE LOOKING AT THOSE ANNUALLY, AND THAT PERIODICALLY WE WOULD ADJUST THEM.
AND, AGAIN THAT, WOULD BE RECOMMENDATIONS MADE AS PART OF THE BUDGET PROCESS.
I THINK I LIKE THAT ONE AS WE MOVE FORWARD AND THE OPTION 2 WITH THE MAINTAINING THE FLEXIBILITY, BUT THIS, THE ANNUAL REVIEW AND THE ADJUSTMENTS IS NEEDED.
BUT TO YOUR POINT, TO REALLY NOW, AND I THINK JEFF WAS HERE, TO START WORKING WITH OUR LEGISLATORS NOW TO START DESIGNING AND DRAFTING WHAT WE NEED TO DO WITH -- AS WE MOVE FORWARD.
FINALLY, TO THE PROPERTY TAX RELIEF, THANK YOU FOR PROVIDING ALL THIS INFORMATION.
ON SLIDE NUMBER 5, ACTUALLY IS IT SLIDE THREE -- NO, SLIDE 5, THE TAX -- THE PROPERTY TAX STATISTICS, I THINK YOU'VE SHARED THIS WITH US BEFORE.
>> VIAGRAN: AND SO I DON'T KNOW IF WE HAVE THIS OR IT WAS PART OF OUR -- THE MAYOR'S HOUSING TASK FORCE DATA OR MAP SHEET, THE DISTRIBUTION OF THIS YEAR'S IN HOME, THE 21 TO 30 YEARS OR THE PLUS 30 YEARS THAT ARE OVER 65 OR DISABLED, THE NUMBER OF HOMESTEADS.
DO WE HAVE A MAP THAT SHOWS THIS DISTRIBUTION THROUGHOUT THE CITY? AND IF NOT, CAN WE GET IT? AND OF THESE THAT ARE HOMESTEADS THAT ARE 65 AND DISABLED, ARE THEY IN THOSE AREAS OF TOWN THAT HAVE SEEN TRANSITION OR BEING GENTRIFIED THAT ARE PART OF THESE MAPS IN THE HOUSING TASK FORCE.
>> GORZELL: I KNOW THAT WE HAVE -- BECAUSE I KNOW WHEN WE DID THIS ANALYSIS, I KNOW WE HAVE MAPS THAT SHOW EVERYONE THAT HAS THIS EXEMPTION.
>> GORZELL: I DON'T BELIEVE WE HAVE MAPS BROKEN DOWN BY YEARS OF SERVICE.
YEARS IN THE HOME, WE WOULD HAVE TO GO WORK ON THAT PIECE, BUT I KNOW WE HAVE IT -- EVERYBODY THAT'S GOT THIS EXEMPTION AND FROM WHAT I RECALL, IT'S PRETTY WELL SPREAD OUT OVER THE ENTIRE CITY, BECAUSE THIS IS BASED ON AGE.
I UNDERSTAND THAT, BUT WHAT I ALSO WANT TO SEE IS IF WE CAN -- LARGE GROUPING IN THESE AREAS OF TRANSITION IN OUR CITY.
>> VIAGRAN: THAT ARE GOING THROUGH THIS TRANSITION, THAT WE'RE TRYING TO KEEP IN THEIR HOMES, THAT HAVE LIVED THERE FOR THESE 20 OR 30 PLUS YEARS IN THESE AREAS THAT WE SEE THAT ARE CHANGING.
SO I WOULD LIKE TO SEE THAT, IF YOU CAN PROVIDE THAT INFORMATION TO ME.
AND I UNDERSTAND THAT WE CAN'T MAKE ANY DESIGNATIONS WHEN IT COMES TO PERCENTAGES OR MAKING ANY SPECIFICATIONS WHEN WE'RE LOOKING AT EXEMPTIONS, IS THAT CORRECT?
>> GORZELL: IN TERMS OF THE HOMESTEAD OR --
IN TERMS OF HOMESTEAD, THAT ONLY IF YOU'RE IN THIS CERTAIN AREA OR SPOT, ET CETERA.
>> GORZELL: IT'S GOT TO BE -- THE TOOLS WE MOSTLY HAVE TODAY ARE VERY BROAD AND JUST KIND OF COVER THE ENTIRE -- ENTIRE GROUP OF HOMESTEADS.
AND YOU SAID ON SLIDE NUMBER 10, WE WERE LOOKING AT THE OVER AGE 65 EXEMPTION AND THE ALTERNATIVE TO BUMP IT UP TO $75,000.
I THOUGHT THAT WAS INTERESTING.
I'M GLAD YOU-ALL PUT THOSE FORWARD AND TO SEE THOSE CHANGES IN THE FOREGO REVENUE OF $4 MILLION.
I THINK THAT'S -- THAT'S INTERESTING IN LOOKING AT THAT.
I'M INTRIGUED BY THAT IN SEEING THAT AS A TOOL, BUT WHAT YOU MENTIONED WAS YOU DIDN'T BELIEVE THAT THIS IS WHERE WE WOULD GET THE MOST -- WHERE PEOPLE COULD SEE THE MOST SAVINGS.
>> VIAGRAN: TAXPAYERS COULD SEE THE HOMESTEAD -- HOMEOWNERS COULD SEE THE MOST SAVINGS.
WHERE DO YOU THINK HOMEOWNERS COULD SEE THE MOST SAVINGS?
>> GORZELL: WELL, I SAID THAT IN RELATION TO THIS BECAUSE THIS ONLY APPLIES TO, FOR
[00:50:01]
EXAMPLE, THE TOP BAND.WELL, ONCE YOU'VE GOTTEN 65, YOU GET THE $65,000 REDUCTION AND THEN IT'S FROZEN.
>> GORZELL: SO YOU DON'T HAVE TO WORRY ABOUT WHAT THE VALUE OF YOUR HOME IS DOING, SO IN THE CASE OF GOING TO, FOR EXAMPLE, $75,000, WE WOULD BE GOING -- FOREGOING $4 MILLION IN REVENUES FOR ALL THOSE PEOPLE THAT ARE CAPPED, THEIR TAX BILL IS SET, THEY GET A LITTLE BIT OF A TEMPORARY REDUCTION BECAUSE IT'S BEEN FROZEN FOR YEARS, AND THEN IT WILL CREEP BACK UP TO THAT SAME DOLLAR CAP AND THEN IT STAYS THERE.
VERSUS A HOMESTEAD EXEMPTION WHICH IS GOING TO TARGET EVERYBODY, INCLUDING THIS GROUP, THEY'LL GET SOMETHING HERE, BUT THE OTHER 55% THAT AREN'T FROZEN, THEY GET THAT BENEFIT.
>> GORZELL: SO YOU'RE GETTING MORE OF A BENEFIT WITH THE DOLLARS THAT YOU'RE FOREGOING FROM THE CITY BUDGET, I GUESS.
>> WALSH: SO COUNCILWOMAN, I'LL ADD JUST A LITTLE BIT.
BEN TALKED ABOUT DIFFERENT OPTIONS, IF YOU CHANGE THE M AND O RATE, IT AFFECTS EVERYBODY ACROSS THE BOARD.
IF THIS IS AN OPTION, IT IMPACTS THOSE OVER 65 OR THAT ARE DISABLED AS WELL.
THE HOMESTEAD EXEMPTION OPTION IMPACTS RESIDENTIAL ONLY.
>> WALSH: SO DEPENDENT ON THE LEVER, IT IMPACTS DIFFERENT SEGMENTS OF THE POPULATION.
>> VIAGRAN: RIGHT.AND THAT'S WHE WE ALL HAVE TO HAVE THE CONVERSATION, BUT WHERE WE -- WHERE MYSELF, I'M THINKING OF WHERE ARE THE AREAS OF MOST VULNERABLE WHO ARE IN IMMEDIATE VULNERABLE SITUATIONS? AND THIS IS -- AND IN DISTRICT 3, AND I THINK PROBABLY -- WELL, I'LL JUST SPEAK FOR DISTRICT 3, IT'S A LOT OF MY SENIORS THAT ARE OVER 65 IN THEIR GENERATIONAL HOMES THAT ARE SEEING THE TRANSITIONS THAT THIS COULD BE A LOT OF ALEVE YAITION, EVEN IF IT'S JUST A LITTLE BIT IN THEIR BILL, IT STILL GOES A LONG WAY.
SO THAT'S WHERE I'M TRYING -- I'M SEEING THIS ALTERNATIVE OF $75,000 TO HELP THIS GROUP IN THIS POPULATION IN OUR -- IN THE COMMUNITY HERE, WHO ARE THE ONES THAT ARE REALLY HAVING A HUGE IMPACT, OR IT'S HAVING A HUGE IMPACT ON THEM.
SO THAT'S WHY I'M FOCUSED IN THIS AREA.
AND I KNOW IT WOULD ONLY TOUCH ONE LEVER, BUT IT'S ONE THAT ARE HAVING THE MOST -- THAT'S AT A VULNERABLE TIME RIGHT NOW.
I AM INTERESTED, THOUGH, IN THE HOMESTEAD EXEMPTION SCENARIO AS WELL, FOR THE MINIMUM $5,000 EXEMPTION, I'M INTERESTED IN THAT, TOO.
SO I'M TRYING TO LOOK AT THE DOLLARS AMOUNT AS WELL.
BUT I'M GOING TO YIELD THE FLOOR HERE, BUT SO YOU KNOW, THAT'S WHY I'M THINKING LEANING MORE ON THE OVER 65 AND DISABLED BECAUSE OF THE VULNERABLE POPULATIONS THAT ARE SEEING MORE OF AN IMMEDIATE NEED.
>> MAYOR NIRENBERG: THANK YOU, COUNCILWOMAN VIAGRAN.
I THOUGHT THIS WAS A REALLY GOOD PRESENTATION.
THERE'S STILL ONE THING THAT I ALWAYS HAVE HAD A QUESTION IN MY MIND ABOUT.
CAN YOU EXPLAIN THE TWO-YEAR BUDGET PLAN WHERE WE LOOK AT 10% AND 5%? COULD YOU RE-EXPLAIN THAT IN A LITTLE MORE DETAIL ABOUT HOW THAT'S SUPPOSED TO WORK.
>> GORZELL: THE MINIMUM TARGET ENDING BALANCE FOR THE GENERAL FUND'S MADE UP OF TWO PIECES.
THERE'S A BUDGETED RESERVE OF 10% AND THERE'S AN ENDING BALANCE PART OF 5% THAT FLOWS THROUGH THE TWO-YEAR.
AND SO WHEN WE DO THE BUDGET, THE FORECAST, WE'RE JUST LOOKING AT OUR REVENUES, EXPENSES AND OUR ENDING BALANCE TO ENSURE THAT WE STAY AT 15% AND WE DON'T DROP BELOW THAT.
THE TWO YEAR IS A LITTLE BIT DIFFERENT BECAUSE IT ALSO LOOKS AT, IT SAYS GOING INTO 2020 AS WE MAKE DECISIONS ABOUT FISCAL YEAR 2020, WE'RE ALSO RUNNING IN MORE DETAIL 2021 AND WE'RE TRYING TO MAKE SURE 2021 STAYS BALANCED AS WELL.
AND REALLY WHAT THAT DOES, THOSE THINGS WORKING TOGETHER, IT KIND OF SMOOTHS OUT SOME OF THE PEEKS AND VALLEYS OF VOLATILE THINGS FROM CPS REVENUES IN THEY'RE MOVING, WE'RE NOT COMING TO YOU SAYING WE HAVE A LOT OF MONEY, WE CAN ADD A LOT OF RECURRENT EXPENSES AND THE NEXT YEAR WE'RE SAYING WE'RE GOING TO HAVE TO CUT A BUNCH OF POSITIONS.
>> COURAGE: BUT IF SOME OF THAT MONEY IS INTENDED OVER A TWO-YEAR PERIOD, DOESN'T THAT AFFECT THE 15% BALANCE.
>> GORZELL: NO, IT'S PART OF THE 15% BALANCE.
[00:55:01]
MEET, I THINK IT'S EASIER PROBABLY JUST ZERO TO SHOW YOU HOW IT FLOWS THROUGH FROM YEAR TO YEAR, BUT THAT IS OUR GOAL TO MAINTAIN THAT MINIMUM 15% BALANCE.DO THE EXTENT WE GO OVER THAT, AGAIN, WE PUT THAT BACK INTO PRODUCTION IN THE NEXT FISCAL YEAR.
LET ME ASK YOU A FEW OTHER QUESTIONS.
>> COURAGE: WE HAVE AN INTERNAL -- OR WE HAVE BOND INDEBTEDNESS, WHAT IS OUR CURRENT BONDED INDEBTEDNESS.
>> GORZELL: FOR THE PROPERTY TAX SIDE ABOUT 2 BILLION.
NOW, THAT'S OUR TOTAL CAPACITY.
>> GORZELL: NO, SIR, THAT'S THE AMOUNT OF DEBT WE HAVE OUTSTANDING ON THE PROPERTY TAX SIDE.
THAT EXCLUDES AIRPORT, REVENUE BONDS, THOSE KIND OF THINGS.
>> COURAGE: WHAT IS THE CAPACITY OF OUR INDEBTEDNESS WITH THAT RATE OF TWO-POINT -- OR 21 CENTS, BASICALLY?
>> GORZELL: THAT IS SOMETHING WE UPDATE EVERY YEAR, SO WE'LL BE GOING THROUGH THAT IN THE COURSE OF THE SUMMER.
I DON'T HAVE IT IN FRONT OF ME.
WE BUILD IN BOND PROGRAMS EVERY FIVE YEARS, SO RIGHT NOW BASED ON THAT 21 CENT TAX RATE, WE'RE AT 925 MILLION.
SO I THINK FOR 2022, WE'VE BUILT IN -- AM I RIGHT -- 925.
$925MILLION WOULD BE THAT PROGRAM AND A SIMILAR SIZE PROGRAM IN 2027.
>> COURAGE: I GUESS THE WAY I'M LOOKING ATE -- AT IT IS, IF WE WERE TO LOWER THAT SEGMENT OF OUR TAX BILL.
IN OTHER WORDS, LOWER OUR BONDING INDEBTEDNESS CAPACITY, REDUCE THAT TO 20 CENTS, OR 19 CENTS, AND THEN PUT THAT PENNY OR TWO BACK INTO O & M, INTO GENERAL FUND, ACCORDING TO WHAT YOU'RE SAYING IF OUR CAPACITY IS -- IF WHAT WE'VE GOT HERE IS 2 BILLION, WOULD WE STILL HAVE THE CAPACITY TO DO WHAT WE WANTED IN THREE OR FOUR, FIVE YEARS AND ADD SOME ADDITIONAL FUNDING, IF WE'RE HAVING SOME PROBLEMS THIS YEAR OR NEXT YEAR BY DOING THAT?
>> GORZELL: LET ME PULL UP A SLIDE HERE AND I'LL ANSWER THAT QUESTION FROM THE STANDPOINT THAT WE WOULD NEED TO -- IF YOU ADJUST THAT DEBT SERVICE TAX RATE, WE'D THEN HAVE TO RUN THAT TO SEE WHAT THE CAPACITY IMPACT IS.
>> COURAGE: RIGHT IMORS CAN YOU PULL UP FOR ME --
>> GORZELL: CAN YOU PULL UP FOR ME SLIDE 13 FROM THE FINANCIAL POLICIES
>> GORZELL: ASSUMING YOU HAVE ROOM TO SHIFT THE TAX RATE AND YOU CAN STAY UNDER THE 3.5% -- LET'S SAY E WE HAVE BASE VALUE GROWTH OF 3.5%, THERE'S NO ROOM TO SHIFT.
IF YOU HAD A YEAR WHERE YOU COULD SHIFT, THIS SLIDE KIND OF SHOWS YOU WHAT'S GOING TO HAPPEN, YOU'D SHIFT A PENNY OVER, AND AS SOON AS BASE VALUE STARTS TO GO OVER 3.5%, YOU START LOSING THAT TAX RATE.
IT'S CONSIDERED PART OF THE 3.5% CAP.
SO IF WE RAISED -- IF WE MOVE TWO CENTS OVER FROM BONDED INDEBTEDNESS TO O & M, WE MIGHT END UP EXCEEDING THAT 3.5 AND WE REALLY COULDN'T DO IT THEN.
>> COURAGE: THAT WAS KIND OF THE QUESTION I WANTED TO FIND OUT ABOUT.
ON SLIDE 16, I THINK IT'S ON THIS PAGE HERE, I THINK THAT WE OUGHT TO BE CONSIDERING RENEWING THE PROPERTY TAX RELIEF ON A REGULAR BASIS.
MY GOAL, AND I BELIEVE MY COUNCIL FRIEND'S GOAL WAS THAT WE WANTED TO BUILD UP THIS TAX -- IN AUDIO] -- IF WE DECIDED THE THIRD YEAR TO GO UP TO 10%, THEN IT INCREASES AGAIN.
HOWEVER, ANY OF THOSE YEARS, I THINK WE NEED TO LOOK AT IT AND FIND OUT WHAT IS GOING TO ALTHOUGH OUR GOAL MAY BE TO GET TO X SOME DAY, WE OBVIOUSLY CAN'T GO TO X NEXT YEAR, AND WE MAY NOT BE ABLE TO REACH IT QUITE AS QUICKLY AS WE MIGHT WANT TO, BUT I THINK THAT'S THE GOAL OF TRYING TO GET THERE AS QUICKLY AS WE CAN, BUT I THINK WE OBVIOUSLY NEED TO BE LOOKING AT YOUR FINANCIAL CAPABILITY EVERY YEAR BEFORE YOU DECIDE,
[01:00:01]
OKAY, WE'RE GOING TO BUMP IT UP TO 5% OR 10 OR 15, AND EVENTUALLY GET TO 20.BUT ONCE YOU GO UP, YOU CAN'T GO DOWN, RIGHT, ON THAT HOMESTEAD EXEMPTION?
>> GORZELL: I THINK THAT'S -- I THINK THAT'S -- YEAH.
>> COURAGE: YEAH, SO WE HAVE TO KEEP THAT IN MIND.
ONE OTHER POINT I WANTED TO POINT OUT.
I'VE BEEN FOLLOWING CPS PRETTY CLOSELY, AND I KNOW THEY'RE LOWER NOW AND I DON'T KNOW THAT WE SHOULD BE TOO OPTIMISTIC THAT THEY'RE GOING TO BE GOING UP VERY HIGH VERY SOON.
THEY'VE CLOSED DOWN TWO PLANTS THAT PROVIDED A LOT OF EXTRA ENERGY THEY COULD SELL IN THE SUMMERTIME.
AND THAT'S A MAJOR CONTRIBUTOR TO WHY THEY'RE FORECASTING EARNING $10 MILLION LESS THIS YEAR.
AND THE YEAR ISN'T OVER FOR THEM, NOR FOR US.
SO I KNOW YOU SAY THIS COULD BE ANOMALY, BUT I THINK WE MAYBE WANT TO CONSIDER IT MORE AS A LIKELY CONTINUATION.
>> WALSH: COUNCILMAN, WHEN WE DID THE FIVE-YEAR FORECAST, WE BUILT THAT IN SO THE BUDGET -- OR THE FORECAST FOR CPS IS $360 MILLION, THE BUDGET THIS YEAR IS 363.
SO IT'S GOT A LITTLE BIT OF GROWTH OFF OF WHERE WE ARE, BUT THAT'S SOMETHING WE'RE GOING TO CONTINUE TO WORK WITH THEM ON AND UPDATE.
>> GORZELL: BUT YOU'RE RIGHT, WEATHER, NATURAL GAS PRICES COMING OUT OF WEST TEXAS ARE REALLY, REALLY LOW PRICES AND CPS IS ABLE TO GET A LOT OF THEIR GAS FROM THERE.
AND THEN AS YOU MENTIONED THE TWO GAS PLANTS THAT THEY ARE -- NOT GAS PLANTS, COAL PLANTS THAT THEY CLOSED LAST DECEMBER WILL IMPACT THEIR CAPACITY TO DO SOME OFFSYSTEM SELLS.
THEY HAVE SOME CAPACITY, BUT IT WON'T BE AS MUCH AS THEY HAD LAST SUMMER.
>> MAYOR NIRENBERG: THANK YOU, COUNCILMAN COURAGE.
>> GONZALES: THANK YOU, MAYOR.
THANK YOU, BEN, NOR THE PRESENTATION.
I'VE TRIED TO UNDERSTAND ALL THE CHANGES THAT ARE FORTHCOMING BECAUSE IT TAKES A LONG TIME JUST TO FIGURE OUT THE BUDGET, AND THEN SUDDENLY WHEN I FELT CONFIDENT, WE HAD A LOT OF CHANGES FROM THE STATE.
YOU KNOW, GIVE MY FEEDBACK, MY SENSE IS JUST GIVEN THE POTENTIAL INSTABILITY THAT WE SHOULD JUST HOLD AND NOT MAKE ANY CHANGES RIGHT NOW.
AND THAT'S REALLY WHAT I WOULD IS NOT MAKE ANY ADJUSTMENT TO THE BUDGET.
WE DO ANTICIPATE THAT THERE WOULD BE WE KNOW THAT WE'RE GOING TO HAVE REDUCTION IN SOME WAYS.
I KNOW THERE IS A DESIRE AMONGST SOME OF US ON THE COUNCIL TO SEE SOME CHANGES IN CPS DUE TO POTENTIAL CLIMATE ACTION PLAN.
I KNOW THAT AS WE ARE CONTINUING TO ADD STREET MAINTENANCE AND IMPROVE OUR WALKABILITY AND HOPEFULLY IMPROVE TRANSIT IN OUR COMMUNITY, THAT'S ALL THINGS THAT ARE STILL UNSTABLE AND JUST GIVEN, YOU KNOW, EVEN THE CONTRACT WITH THE FIREFIGHTERS THAT'S STILL NOT -- IS YET TO BE DETERMINED, I THINK WE SHOULD JUST HOLD WITH WHAT WE'VE GOT.
SO IF THERE DID, YOU KNOW, HAVE TO BE A CHANGE AND MY -- THERE WAS NOT ENOUGH DESIRE ON THE COUNCIL TO JUST STABLE, PERHAPS THE ONE THAT I THINK WOULD BE THE LEAST -- HAVE THE LEAST IMPACT TO OUR BUDGET WOULD BE INCREASING THE OVER 65 EXEMPTION FROM 65 TO 75.
SO, YOU KNOW, I JUST -- I HAVE -- I FEEL A LOT OF UNCERTAINTY IN OUR BUDGET AND I WOULD JUST FEEL A LITTLE BIT MORE CONFIDENT IF WE JUST HELD.
SO THOSE ARE -- THAT'S MY FEEDBACK, BUT I DO HAVE A QUESTION, AND I THINK EXAM EXAM -- COUNCILWOMAN VIAGRAN ASKED THE QUESTION WELL BUT IF YOU COULD JUST REITERATE.
WHEN WE'RE TALKING ABOUT A 3.5% CAP, YOU HAVE MADE A SUGGESTION THAT WE, EVERY YEAR, I GUESS WE TRY TO WORK TO THAT CAP, RIGHT? SO RATHER THAN -- SO WE MAY BE INCREASING OR LOWERING OUR TAX RATE AT ANY GIVEN YEAR?
>> GONZALES: AND WHAT WOULD BE THE TERM OF THAT FORS YOU'D BE LOOKING AT IT ON AN ANNUAL BASIS, BASED ON WHATEVER'S HAPPENING WITH VALUES, CARRYFORWARD, WE WOULD BE LOOKING AT WHAT THE IMPACT IS.
SO IF YOU'LL PULL SLIDE 11 UP FROM THE FINANCIAL POLICIES.
OH, FROM THE OTHER PRESENTATION.
IT'S THE SLIDE THAT'S GOT THE TAXABLE VALUE GROWTH ON IT.
[01:05:01]
SO THE CHANGE WITH THAT POLICY THAT WE'RE TALKING ABOUT IS FROM 2015 FORWARD, ROUGHLY THE BASE VALUE GROWTH IS OVER 3.5%.WE'D HAVE TO -- WE'RE GOING TO HAVE TO LOWER THE TAX RATE.
THERE'S NOT AN OPTION, YOU HAVE TO GO TO ELECTION OR YOU HAVE TO LOWER THE TAX RATE TO MEET THAT 3.5% REQUIREMENT.
THE THINGS THAT'S DIFFERENT IS WHEN YOU GO PRIOR TO 2015, THOSE YEARS WHERE WE WERE EITHER NEGATIVE OR NOT AT 3.5%, YOU HAVE THE ABILITY TO INCREASE THE TAX RATE SO THAT YOU CAN GET TO THAT 3.5% OR CLOSER TO THE 3.5%.
IN THE PAST, WE HAVEN'T CHANGED IT, WE'VE JUST SAID WE'RE GOING TO LEAVE THE TAX RATE ALONE THIS SAYS WE'RE GOING TO CHANGE THE TAX RATE IN THOSE YEARS, OR AT LEAST IN SOME OF THOSE YEARS, NOT ALL OF THOSE YEARS, BUT WE'D LOOK AT THAT AS PART OF THE BUDGET.
THE POLICY IS REALLY GEARED TO -- TO CHANGE THE DYNAMIC A LITTLE BIT IN TERMS OF SB 2 AND HOW WE'RE HAVING TO DEAL WITH IT AND NOT SAY THAT WE'RE NEVER GOING TO INCREASE THE TAX RATE.
WE'LL ALWAYS BE CAPPED WHEN THERE'S GROWTH, BUT WHEN WE'RE LESS THAN 3½ WE WON'T INCREASE THE TAX RATE.
WHAT THAT MEANS IS THE TAX RATE WILL BE FALLING AND YOUR AVERAGE GROWTH OVER TIME WILL BE LESS THAN 3½%.
AND SO IT MAKES IT HARDER AND HARDER FOR US TO KEEP UP WITH JUST OUR ONGOING COSTS.
>> RIGHT, AND THEN YOU WOULD HAVE TO COME TO PRESENT --
>> WE WOULD THEN HAVE TO APPROVE OR NOT APPROVE, WHICH I KNOW YOU ALL COME TO US EVERY QUARTER ANYWAY.
>> BUT IF EVERY QUARTER WE WERE HAVING TO MAKE THAT DECISION I THINK IT WOULD NOT BE GOOD.
>> IT WOULD BE PART OF THE BUDGET PROCESS ANNUALLY, SO FOR PLANNING PERSPECTIVE, DO WE GO TO THE 3½ OR DO WE STAY UNDER THE 3½ AND THAT WOULD BE PART OF THE BUDGET DIALOGUE WE HAVE WITH THAT EVERY YEAR.
THIS POLICY SIGNALS TO US AND TO THE RATING AGENCIES WE'RE WILLING TO AT LEAST LOOK IN THOSE YEARS AT POTENTIALLY INCREASING THE TAX RATE IF WE'RE BELOW 3½%.
WELL, THANK YOU FOR THAT, AND THANK YOU MAYOR.
>> MAYOR NIRENBERG: THANK YOU, COUNCILWOMAN GONZALES.
COUNCILMAN BROCKHOUSE? COUNCILMAN SANDOVAL? YOUR IPADS ARE SWITCHED.
>> I THINK THEY'RE MAYBE SWITCHED WITH SOMEONE ELSE BUT I'LL GO AHEAD AND GO.
THANK YOU, BEN, FOR YOUR PRESENTATION.
A QUICK CLARIFICATION ON THE SECOND PRESENTATION, SLIDE 6, HAS A SAN ANTONIO AREA EXEMPTION COMPARISON UNDER THE COUNTY JURISDICTION HAS GOT AN X ON HOMESTEAD AS OPPOSES TO A CHECK MARK.
>> SLIDE 6, THE -- SO YES, WE'RE JUST TRYING TO GIVE YOU A COMPARISON OF THE TAXING ENTITIES HERE.
SO IN TERMS OF WHO PROVIDES A HOMESTEAD EXEMPTION RIGHT NOW, I'M READING IT BACKWARDS, I GUESS.
>> THERE'S A MANDATORY SCHOOL DISTRICT HOMESTEAD EXEMPTION THAT ALL THE SCHOOL DISTRICTS OFFER, AND THEN THE SAN ANTONIO RIVER AUTHORITY ALSO OFFERS A HOMESTEAD EXEMPTION.
>> SANDOVAL: AND SO, I'M SORRY, THE COUNTY DOES NOT, THEN?
AND THEN THEIR 10% MAX, WHAT DO WE CALL THAT WHEN YOU CAN'T -- I MEAN, THEY ASK US TO FILL OUT A FORM THAT SAYS DO YOU HAVE A HOMESTEAD EXEMPTION, AND WE CHECK IT, SO THAT APPLIES JUST TO SCHOOL DISTRICTS AND SARA BUT NOT TO THE ACTUAL COUNTY COUNTY.
>> RIGHT, AND THE ENTITY THAT HAS THE HOMESTEAD EXEMPTION THAT WOULD APPLY.
SO I WANT TO ASK, IN TERMS OF -- THANKS FOR SPLITTING THE TAX RATE INTO WHAT IS DEBT AND WHAT IS OPERATIONS AND MAINTENANCE.
HOW MUCH DO WE HAVE IN TERMS OF CERTIFICATES OF OBLIGATIONS ON A YEAR TO YEAR BASIS? AND WOULD THAT FALL INTO NOT O&M BUT CAPITAL, I GUESS, INTO DEBT?
>> YEAH, ANYTHING THAT WE ISSUE THAT'S DEBT, WHETHER IT BE CERTIFICATES OF OBLIGATION, TAX NOTES, GENERAL OBLIGATION BONDS, ANYTHING THAT'S GOT A PROPERTY TAX PLEDGE ON IT IS GOING TO BE TIED TO THAT TAX DEBT RATE OF 29 CENTS.
SO IN TERMS OF JUST GENERAL TAX RELIEF FOR THE PURPOSES OF TODAY'S DISCUSSION, WE CERTAINLY HAVE A DEMAND FOR IT FROM THE -- FROM THE PUBLIC.
WITH THE ROLLBACK RATE LEGISLATION AS WELL AS THE
[01:10:02]
SCHOOL FINANCE REFORM BILL, WHAT TAX RELIEF CAN OUR RESIDENTS EXPECT DIRECTLY FROM THOSE TWO?>> I DON'T KNOW THAT I CAN ANSWER THAT.
JEFF CAN MAYBE HELP A LITTLE BIT IN TERMS OF THE SCHOOL FINANCE IS A BIG PART OF THAT, IN TERMS OF THE DOLLARS THAT THE STATE PUT TOWARDS EDUCATION, BUT I DON'T KNOW THAT I SAW ANALYSIS AROUND WHAT THE PROJECTED SAVINGS IS.
>> SANDOVAL: LIKE ON A -- YOU KNOW, THE AVERAGE HOUSEHOLD OR BASED ON WHAT THE PROPERTY VALUE IS.
>> COUNCIL, I DON'T HAVE THAT IN FRONT OF ME AND I'M NOT SURE THE SCHOOL DISTRICTS HAVE CALCULATED EITHER.
AS LAST CHECK LAST WEEK THEY HADN'T FULLY ANALYZED THOSE NUMBERS.
IN SHORT, THOUGH, WHAT THE LEGISLATION DID WAS BUY DOWN LOCAL TAX RATES, SO IT COMPRESSED -- THEY'RE UNDER A 2.5% CAP, NOT A 3.5% CAP, AND IT COMPRESSED THEIR TAX RATES WITH THE STATE MAKING UP THE DIFFERENCE IN STATE SCHOOL DISTRICTS LIKE CITIES AND COUNTIES COULD ALWAYS RAISE THEIR RATES AND INCREASE THAT, BUT THE SPIRIT OF THE LEGISLATION WAS THAT THEIR LOCAL RATES WOULD BE COMPRESSED AND MADE UP FOR IN STATE DOLLARS, AND TO WHAT EXTENT, I'M TRYING TO FIND IT WHILE WE'RE IN THE ROOM HERE.
>> COUNCILMAN, THAT'S SOMETHING WE COULD FOLLOW UP IN THE INTERIM BEFORE THE 21ST AND SEE IF WE CAN MINE SOME OF THAT WITH THE SCHOOL DISTRICTS AND GIVE IT TO YOU AND THE REST OF THE COUNCIL.
>> SANDOVAL: THAT WOULD BE HELPFUL.
IT WOULD JUST BE GOOD TO RELIEF WE'RE GOING TO PROVIDE.
I WANT TO KNOW WHAT CONTEXT IT LANDS IN, BECAUSE WE ALSO WORKED VERY -- OR YOU WORKED VERY HARD ON THE OTHER TYPES OF RELIEF AS WELL.
BEN, WHAT DID YOU SAY, HOW MUCH DO WE ISSUE IN CERTIFICATES OF OBLIGATIONS?
>> THAT'S GOING TO VARY BASED ON THE BUDGET.
THIS YEAR THE CERTIFICATES OF OBLIGATION -- I'M LOOKING AT THE STAFF, AROUND 60 MILLION THIS YEAR, BALLPARK? IT'S ABOUT 50 TO 60 MILLION THIS YEAR.
AND WHAT'S OUR -- WHAT'S YOUR GUIDANCE ON HOW MUCH YOU ISSUE IN CERTIFICATES OF OBLIGATION?
>> THE BUDGET PLANNING PROCESS, AS WE LOOK AT THE CAPITAL BUDGET OVERALL AND WE'RE LOOKING AT -- YOU KNOW, WE HAVE FIVE-YEAR GO PROGRAMS BUILT IN EVERY FIVE YEARS.
SO BETWEEN THAT, THE NEED TO DO ADDITIONAL PROJECTS COMES OUT.
WE DO A LOT OF FACILITIES THROUGH CERTIFICATES OF OBLIGATION, TAX NOTES WE DO SOME, TECHNOLOGY PROJECTS THAT WAY.
AND EVEN ON THE STREET SIDE A LOT OF THE COS GO TOWARD STREETS HELPING US WITH OUR I MP PROGRAM SO NOT ALL COMES OUT OF THE CAPITAL FUND.
SOME COMES OUT OF THE CAPITAL BUDGET AS FUNDED WITH COS AND TAX NOTES, AND WHEN WE DO THAT WE DON'T ISSUE ALL OF THAT WITH A 20-YEAR LIFE BEING PAID BACK OVER 20 YEARS.
A LOT OF THAT WE WILL ACTUALLY SHORTEN UP, AND WE TALK ABOUT THAT AS PART OF OUR DEBT MANAGEMENT STRATEGY THAT WILL PAY THE PRINCIPAL DOWN REALLY FAST.
SOME OF THAT BUILDS INTO THAT AS WELL.
SO IT ALMOST BECOMES AN EXTENSION OF THE OPERATING SIDE, A LITTLE BIT.
SO CAPITAL PROJECTS HELPS US TAKE SOME OF THE PRESSURE OFF THE GENERAL FUND.
>> SANDOVAL: RIGHT, SO I WAS WONDERING IF THAT'S SOMETHING WE COULD TURN TO WHEN O&M IS LOW.
>> THAT IS SOMETHING WE CERTAINLY CAN LOOK AT, AND AS I MENTIONED WITH THE CPS ISSUE AND THE FACT THAT WE'RE $11 MILLION UNDER, WE'RE LOOKING AT THAT, WE'LL LOOK AT THAT DURING THE MONTH OF JULY AS WE UPDATE THE CPS FORECAST AND AS WE UPDATE THE DEBT PLAN WE'LL LOOK AT SOMETHING AND SEE IF THERE'S SOMETHING WE CAN SHIFT THE STREET MAINTENANCE INTO THE CAPITAL PLAN TO MAKE UP FOR THIS LOST CPS REVENUE, GIVEN THE FACT THAT IT'S MORE -- I THINK SOME OF THAT IS MORE OF A ONE-TIME ISSUE HOPEFULLY, THAT, YOU KNOW, THERE'S SOME WEATHER IMPACTS THERE, CERTAINLY FUEL MAY STAY LOW FOR -- DOESN'T LOOK LIKE THERE'S ANY INDICATION THAT'S GOING TO COME UP GIVEN THE AMOUNT OF NATURAL GAS THAT'S BEING PRODUCED.
I DON'T KNOW THAT THAT'S GOING TO MOVE MUCH, BUT CERTAINLY THE WEATHER -- AND WHEN WE ACTUALLY LOOK AT THE CPS FORECAST AND WE LOOK AT OUR BUDGET AND WHAT THE VARIANCES ARE, WE'RE TRYING TO LOOK AT IT BY COMPONENT, HOW MUCH IS WEATHER, HOW MUCH OF IT IS FUEL, HOW MUCH OF IT IS SALES THEY'RE MAKING OFF SYSTEM SO THAT WE GET A BETTER UNDERSTANDING OF WHERE WE NEED TO ADJUSTAGE HOW THAT -- AND HOW THAT AFFECTS US GOING FORWARD.
>> SANDOVAL: THTHERE'S BEEN TALK OF A POTENTIAL CPS RATE, ONE OF THEIR BOARD MEMBERS MENTIONED IT AFTER REALIZING HOW MUCH REVENUE HAD BEEN LOST WITH THE CLOSURE OF ONE OF THOSE COAL PLANTS.
ARE YOU REMIND ME, WHEN IT COMES TO SAWS, WE APPOINT A COMMITTEE TO DO A RATE RECOMMENDATION OR RATE REVIEW.
WHEN IT COMES TO CPS, HOW IS THAT DEVELOPED?
>> WELL, ON THE SAWS SIDE, YOU MAY BE REFERRING TO THE IMPACT FEES --
>> NO, NO, WE JUST GOT A MEMO ABOUT A RATE STRUCTURE COMMITTEE FOR SAWS.
>> SO THAT'S THE RATES ADVISORY COMMITTEE.
THEY'LL SET THAT UP SO THAT THEY -- THEY WANT TO SPECIFICALLY STUDY THE RATE
[01:15:02]
STRUCTURE, SO IT'S A CITIZEN COMMITTEE TO GIVE THEM FEEDBACK ABOUT WHAT THAT STRUCTURE SHOULD LOOK LIKE.CPS HAS A CITIZENS ADVISORY COMMITTEE AS WELL THAT THEY WORK WITH THAT GIVES THEM INPUT.
BUT THE RATE CASE IS PRIMARILY DEVELOPED BY CPS, MUCH LIKE SAWS, 23 THEY WERE DEVELOPING -- IF THEY WERE DEVELOPING A RATE CASE IT'S GOING TO BE THEIR STAFF WITH CONSULTANTS WITH INPUT FOR THEIR CITIZENS ADVISORY COMMITTEE.
CPS SIMILARLY BUT PROBABLY DOESN'T USE A CITIZENS ADVISORY COMMITTEE QUITE AS MUCH.
I'LL HAVE A LONGER CONVERSATION WITH YOU ABOUT THAT ON-LINE IN TERMS OF WHAT FLEXIBILITY AUDIO] TEND TO AGREE WITH COUNCILWOMAN GONZALES ABOUT ALL THESE CHANGES HAPPENING AT THE -- AT THE STATE AND KIND OF WATCHING AND LOOKING AND SEEING WHAT HAPPENS BEFORE WE MAKE ANY DRASTIC CHANGES.
THERE'S NO DOUBT THAT HOMEOWNERS ARE COMING TO US REQUESTING SOME KIND OF RELIEF, AND I HOPE THEY ARE GETTING SOME OF THAT THROUGH THOSE OTHER TWO MEASURES THAT HAVE PASSED AT THE STATE LEGISLATURE, SO I THINK IT WILL BE IMPORTANT TO SEE WHAT THOSE BRING.
I WOULD -- I WOULD CONSIDER AN INCREASE IN THE SENIOR HOME EXEMPTION AMOUNT UP FROM $65,000, BUT THE TRUTH OF THE MATTER IS THAT THE NEEDS THAT THE CITY HAS STILL AREN'T MET YET, SO, YOU KNOW, I'VE HAD THIS CONVERSATION WITH SOME OF YOU, BUT WHEN WE TALK ABOUT DRAINAGE NEEDS IN DISTRICT 7 AND DISTRICT 3 HAS SOME OF THE SAME, WE'RE TALKING ABOUT A LIFETIME OF CAPITAL WORK THAT NEEDS TO BE DONE BEFORE WE MEET THE NEEDS OF BASIC INFRASTRUCTURE IN THAT DISTRICT.
SO WHEN WE TALK ABOUT GIVING TAX BREAKS TO PEOPLE WHO LIVE IN HOMES THAT MAY BE MORE THAN 200,000 OR 300,000 OR 400,000, IT'S JUST TOUGH FOR ME TO SAY, SURE, I'LL WAIT, YOU KNOW, 120 YEARS FOR THE DRAINAGE PROJECT IN DISTRICT 7 TO BE DONE.
I DON'T -- I DON'T THINK I CAN DO THAT.
ALSO, IN TERMS OF TAX RELIEF, WE KNOW IT'S NOT JUST HITTING OUR HOMEOWNERS WHO, YOU KNOW, BY THE GRACE OF GOD HAVE A HOME, BUT WE HAVE A NUMBER OF RENTERS WHO HAVE NEVER BEEN ABLE TO PURCHASE A HOME, AND, YOU KNOW, I DID THE TOUR OF HAVEN FOR HOPE JUST A COUPLE WEEKS AGO, AND THEY MENTIONED TO US THAT THEY'RE HAVING NOT JUST INDIVIDUALS COMING THERE BUT A BIG SPIKE IN FAMILIES THAT ARE COMING TO HAVEN FOR HOPE, AND THE THINKING OR THE RATIONALE IS PROBABLY THAT IT'S FAMILIES THAT ARE BEING EVICTED FROM APARTMENTS OR WHEREVER THEY'RE RENTING AND AREN'T ABLE TO TAKE THE INCREASE IN PROPERTY TAX -- I IMAGINE IT'S DUE TO THE PROPERTY TAXES BUT BASICALLY IT'S PEOPLE WHO CAN'T PAY AN INCREASE IN RENT, AN UNPREDICTABLE INCREASE IN RENT FROM YEAR TO YEAR.
SO WE'RE PAYING FOR IT IN OTHER WAYS, RIGHT? WE HAVE FAMILIES THAT ARE WITHOUT -- WITHOUT HOUSING THAT ARE LANDING AT HAVEN FOR HOPE OR IN OTHER PLACES OR ENCAMPMENTS, SO I THINK THE RELIEF ISN'T JUST ABOUT HOMEOWNERS BUT IT'S ABOUT THE PEOPLE WHO LIVE IN SAN ANTONIO.
AND JUST THE HOMESTEAD EXEMPTION ALONE ISN'T GOING TO HELP THEM, SO I JUST WOULD LIKE FOR US TO CONSIDER WHAT -- WHAT WE CAN DO ALONG THOSE LINES.
I KNOW WE HAVE SOME SMALL PROGRAMS THAT PROVIDE A LITTLE BIT OF RELIEF, BUT THIS IS -- THIS IS A MUCH BIGGER PROBLEM, I THINK, THAN JUST FOR HOMEOWNERS.
SO I DON'T WANT TO LOSE -- LOSE SIGHT OF THAT.
WE DID HAVE WORKSHOPS -- I KNOW I KEEP TALKING ABOUT THIS -- WORKSHOPS FOR HOW TO PROTEST YOUR PROPERTY TAXES, SO I HAVE BEEN AT ABOUT SEVEN OF THOSE WORKSHOPS AND HEARD THE LECTURE, AND I KNOW SOME PEOPLE HERE HAVE -- INCLUDING MY STAFF, OF COURSE, HAVE BEEN AT A LOT OF THOSE, AND THE MOST IMPORTANT THING THAT I LEARNED FROM THERE IS THAT THE MASS APPRAISAL SYSTEM THAT THE COUNTY DOES IS NOT VERY ACCURATE, RIGHT? IT'S A MASS APPRAISAL SYSTEM.
THEY DON'T HAVE ONE PERSON THAT CAN GO TO EVERY HOUSE AND DO THAT, AND IT'S BASED ON SALES VALUES, WHICH, YOU KNOW, WHEN A HOME IS BEING SOLD, THAT'S WHEN IT'S IN ITS BEST CONDITION, FOR THE MOST PART.
SO IN TERMS OF PEOPLE WHO HAVE BEEN IN THEIR HOMES 20 OR 30 YEARS, IT'S NOT GOING TO BE IN ITS BEST CONDITION, AND REALLY THOSE ARE THE PEOPLE WHO NEED OUR HELP IN FIGHTING THAT APPRAISAL, OR BRINGING A MORE ACCURATE PICTURE FOR A MORE ACCURATE APPRAISAL.
IT'S NOT EVEN SO MUCH A FIGHT BUT IT'S GIVING THE INFORMATION THAT'S NEEDED TO MAKE A MORE APPROPRIATE ADJUSTMENT.
SO I WOULD -- IN TERMS OF PROPERTY TAX RELIEF, I THINK THAT'S ANOTHER AVENUE THAT WE CAN -- THAT WE CAN CONSIDER.
CERTAINLY MY OFFICE WILL CONTINUE TO DO THAT, BUT ERIK, IF WE WANT TO CONSIDER HAVING THAT BE SOMETHING MAYBE A LITTLE BIT MORE STANDARD THAT WE OFFER?
[01:20:07]
AND I THINK I WILL STOP THERE.THANK YOU VERY MUCH, BEN, AND EVERYONE.
>> COUNCILWOMAN, I WAS GOING TO MENTION, AND I THINK COUNCILMAN TREVINO ASKED THIS MAYBE DURING THE FORECAST MEETING OR MAYBE IT WAS BEFORE ONE OF OUR PROPERTY TAX SESSIONS.
WE'VE GOT THIS 865 EXEMPTION AND A SENIOR FREEZE, IN BEXAR COUNTY APPRAISAL DISTRICT WHEN YOU SIGN UP FOR YOUR HOMESTEAD TODAY THEY'RE COLLECTING BIRTH DATE INFORMATION SO THEY KNOW FOR THOSE NEW PEOPLE COMING ON-LINE WHEN THEY'RE GOING TO TURN 65, BUT THERE'S A POPULATION THAT THEY DON'T HAVE THAT INFORMATION FOR, SO WE HAVE BEEN TALKING WITH THEM.
I KNOW THEY'RE REALLY, YOU KNOW, BUSY RIGHT NOW TRYING TO GET THROUGH THE CERTIFIED ROLL, BUT WE WANT TO HAVE MORE CONVERSATION WITH THEM ABOUT USING DATA WE HAVE, DO DATA SHARING, TO SEE HOW WE CAN MAYBE IDENTIFY MAYBE THOSE SENIORS OUT THERE THAT -- THAT HAVEN'T TAKEN ADVANTAGE OF THIS EXEMPTION SO THAT WE CAN HELP GET THEM THE EXEMPTION.
>> SANDOVAL: YOU'RE ABSOLUTELY RIGHT.
THAT'S WHAT WE'RE FINDING IN SOME OF OUR WORKSHOPS IS PEOPLE DON'T HAVE THEIR BASIC EXEMPTION.
SO I THINK THAT CCR AND THAT INITIATIVE THAT THE COUNCILMAN PUT FORWARD IS A GREAT WAY TO MOVE TOWARD THAT.
>> MAYOR NIRENBERG: THANK YOU, COUNCILMAN SANDOVAL.
I DO HAVE SOME QUESTIONS HERE FOR YOU.
SLIDE -- SLIDE 3 ON THE FIRST -- FIRST PRESENTATION.
EXPLAIN TO ME WHAT THIS CONTINGENCY OF 1 MILLION IN THE GENERAL FUND AND 3 MILLION CAPITAL BUDGET ARE FOR.
>> THIS IS AN APPROPRIATION THAT WE HAVE PUT IN PLACE THE LAST SEVERAL YEARS SO THAT WHEN YOU ADOPT THE BUDGET, IT DOESN'T HAVE A SPECIFIC EXPENDITURE TIED TO IT.
IT'S A CONTINGENCY, SO THAT IF SOMETHING COMES UP DURING THE COURSE OF THE YEAR, THAT YOU CONSIDER TO BE A HIGH PRIORITY, WE HAVE DOLLARS THAT WE CAN IT'S A MILLION DOLLARS IN THE GENERAL FUND, IT'S NOT GOING TO BE ANYTHING LARGE, BUT TO THE EXTENT SOME ISSUE CAME UP, WE'VE GOT SOME DOLLARS THAT WE CAN APPLY TOWARDS THAT.
TO THE EXTENT THAT NEVER HAPPENS, WE JUST DON'T USE IT.
>> HAVE WE SPENT IT IN THE LAST SEVERAL YEARS, THE [INDISCERNIBLE] MILLION AND THE 3 MILLION?
>> I'M GOING TO ASK MARIA TO HELP ME WITH THAT ONE.
>> OR HOW MUCH HAVE WE SPENT OVER THE LAST SEVERAL YEARS?
>> COUNCILMAN, JUST FOR CONTEXT, THIS FISCAL YEAR 2019, WHEN WE PRESENTED THE MIDYEAR BUDGET TO THE COUNCIL, WE HAD ROUGHLY ABOUT $2.4 MILLION WAS APPROVED IN THE CAPITAL BUDGET, APPROVED BY COUNCIL FOR HAVEN FOR HOPE, SO THAT'S HOW WE USED THE CONTINGENCY.
THE BUDGET DID NOT INCLUDE THE ENTIRE 3 MILLION.
THAT IS A TARGET THAT WE HAVE, BUT WHAT WE BUDGETED IN THE ADOPTED BUDGET WAS 2.4 AND THAT WAS USED FOR HAVEN FOR HOPE.
IN THE OPERATING BUDGET, WHICH IS THE GENERAL FUND, IN THE PAST THAT HAS BEEN USED AS PART OF THE MIDYEAR ADJUSTMENT.
THIS YEAR WE UTILIZED A PORTION OF THAT.
EXAMPLE THAT COMES TO MIND IS THE MIGRATE RESOURCE CENTER, WE DID $141,000.
AND THEN WE HAD ADJUSTMENTS AS WELL IN THE GENERAL FUND.
IF THE DOLLARS ARE NOT USED, THEY ARE RELEASED WHEN WE DO THE FINAL ESTIMATE FOR THE FISCAL YEAR IN PREPARATION FOR THE PROPOSED BUDGET.
AND THEN WHAT IS THE MINIMUM ENDING BALANCE OF 15% ABOUT? WHAT IS THAT FOR?
>> SO THAT IS OUR MINIMUM -- THAT'S OUR RESERVE.
>> SO IT'S LESS THAN TWO MONTHS' RESERVE THAT WE MAINTAIN, AND THAT IS THERE, YOU KNOW, IN THE EVENT OF SOME KIND OF CATASTROPHIC ISSUE, THAT'S OUR RESERVE.
>> PERRY: SO THAT'S REALLY A CONTINGENCY?
>> MORE FOR CATASTROPHIC-TYPE ISSUES.
>> PERRY: BUT IT'S STILL A CONTINGENCY.
>> YES, IT'S A RESERVE FUND, NOT CONTINGENCY BUT MORE A RESERVE FUND.
>> PERRY: I'M JUST TRYING TO SAY WHY DO WE SPLIT -- WHY DON'T WE COMBINE ALL 4 MILLION INTO THE 15%? WHY DO WE HAVE TWO SEPARATE CATEGORIES THERE?
>> SO THE ENDING BALANCE IS -- IT'S MORE OF A RESERVE.
IT'S THE FUND BALANCE LEFT AT THE END OF THE DAY.
WE'RE GOING TO RESERVE AND NOT SPEND THAT.
THE 1 MILLION AND THE 3 MILLION IS ACTUALLY A BUDGET APPROPRIATION THAT IS AVAILABLE.
>> -- THAT YOU CAN SPEND IF YOU ALL DECIDE THAT THERE'S A HIGH PRIORITY THING YOU WANT TO DO IN THE YEAR.
I'LL TALK A LITTLE BIT MORE WITH YOU ABOUT THAT.
>> PERRY: I'M NOT SURE WHY WE KEEP SHOWING THIS ABOUT BEING DOWNGRADED, YOU KNOW,
[01:25:02]
AND WHAT THE IMPACTS ARE GOING TO BE.HAVE WE BEEN APPROACHED BY THE RATING AGENCIES SAYING WE'RE THINKING ABOUT DOWNGRADING YOU? I JUST DON'T UNDERSTAND WHY WE KEEP SHOWING THIS KIND OF INFORMATION, BECAUSE AS FAR AS I KNOW THERE'S ONLY ONE RATING AGENCY, THE LESSER OF THE THREE, THAT DOWNGRADED US TO A AA+, BUT THE OTHER TWO, WE'RE FINE AS FAR AS I KNOW, AND I'M NOT SURE WHY WE KEEP -- TO ME THIS IS LIKE PUTTING CLOUDS IN THE SKY OVER OUR BUDGETING PROCESS.
>> SO I WOULD SAY FINE IS A RELATIVE TERM.
I'M FINE ONCE WE WALK OUT THE DOOR AND WE HAVE THAT RATING, BUT THAT RATING DOESN'T STAY IN PLACE.
WE'RE UNDER CONSTANT EVALUATION.
>> AND SO AS THEY EVALUATE US, WE'VE HAD SOME BIG SHIFTS HERE.
I MEAN, SB 2 IS A BIG FUNDAMENTAL SHIFT IN TERMS OF HOW LOCAL GOVERNMENTS IN TEXAS ARE GOING TO MANAGE THEIR BUDGETS, SO THERE'S CERTAINLY GOING TO BE PRESSURE -- TWO OF THE RATING AGENCIES HAVE ALREADY PUT OUT NOTICES ABOUT HOW THEY VIEW THAT.
THAT'S A CREDIT NEGATIVE, SO THAT'S ADDITIONAL PRESSURE ON THE RATING, IN ADDITION TO MAINTAINING YOUR FINANCIAL POSITION IN TERMS OF -- AND ALSO IN TERMS OF MEETING YOUR SERVICE DELIVERY AND ALL THE NEEDS IN THE COMMUNITY.
SO WE'RE ALWAYS UNDER THAT SCRUTINY, AND, YOU KNOW, WITH -- WITH PROP C BEING ON THE EXPENDITURE SIDE WITH THAT RISK ASSOCIATED WITH THAT, THEY HAVE TO WEIGH ALL OF THAT, AND IT'S NOT A -- I GET ASKED THIS QUESTION A LOT.
IT'S A SHORT-TERM LOOK, THEY'RE LOOKING AT WHERE YOU'RE AT TODAY, WHAT'S YOUR FINANCIAL POSITION LOOK LIKE, BUT THEY'RE ALSO TRYING TO LOOK AT HOW YOU MANAGE THINGS, BECAUSE PEOPLE THAT BUY OUR BONDS ARE GOING TO GET PAID BACK OVER SOMETIMES 15, 20 YEARS.
SO THEY KIND OF WANT TO KNOW FROM A GOVERNANCE STANDPOINT HOW WE'RE MANAGING, WHAT WE'RE DOING AND WHAT THAT FUTURE MIGHT LOOK LIKE.
SO THEY'RE BUILDING ALL OF THAT IN WHEN TWHE RUN THEIR SNARE -- WHEN THEY RUN THEIR SCENARIOS AND THEY'RE LOOKING AT US.
>> HOW LONG HAVE WE HAD OUR AAA RATING NOW?
>> AND YOU ALL DID AN EXCELLENT JOB DEFENDING THAT.
I GUESS I'M -- WE KEEP THROWING THAT UP THERE, HEY, THIS MAY HAPPEN, AND IT KIND OF PUTS A DAMPER ON WHAT OUR EXPECTATIONS ARE AND WHAT WE SHOULD BE PLANNING FOR.
I DON'T THINK WE SHOULD BE PLANNING FOR LOWER GRADE RATING, BECAUSE WE ARE DOING OUR JOB AND MEETING OUR -- AND HAVING A BALANCED BUDGET, WE'RE MEETING -- MEETING THE BUDGET REQUIREMENTS AND THE JOB THAT YOU ALL ARE DOING SHOWING HOW WE'RE MANAGING OUR BUDGET HERE IN SAN ANTONIO.
SO I'M -- I'M JUST SAYING FROM A -- FROM AN OPTICS PERSPECTIVE I DON'T UNDERSTAND WHY WE KEEP SHOWING THIS AS A POTENTIAL GLOOM AND DOOM ABOUT BUDGETING AND RATING AGENCIES HERE.
YOU KNOW, THAT'S -- THAT'S JUST MY OWN COMMENTS ABOUT THAT.
>> SO PART OF THAT IS WHEN WE GO IN AND WE MEET WITH THEM, AGAIN, THE FINANCIAL PARAMETERS HAVE SHIFTED FOR US, THINGS LIKE SB 2.
I MEAN, ONE OF THE THINGS THEY'RE GOING TO BE LOOKING AT AND EVALUATING NOT ONLY FOR US, THEY'RE GOING TO LOOK AT PEOPLE ACROSS THE STATE, HOW ARE YOU GOING TO ADJUST AND MANAGE UNDER THAT NEW TAX STRUCTURE? AND FOR EVERY CITY IT'S A LITTLE BIT DIFFERENT.
SOME CITIES HAVEN'T HELD A TAX RATE CONSTANT.
THEY'VE BEEN GOING TO THE ROLLBACK RATE, OR CLOSER TO THE ROLLBACK RATE.
FOR THEM IT'S GOING TO BE A BIGGER IMPACT AND MORE OF AN ADJUSTMENT.
BUT I GUESS THE POINT IN PUTTING THIS UP HERE IS THERE'S RISK TO THE RATING, THERE'S PRESSURE ON THE RATING TODAY --
>> THERE'S ALWAYS GOING TO BE THAT, BEN.
THERE'S ALWAYS GOING TO BE THAT.
>> I WOULD SAY OUT OF THE NINE YEARS I'VE BEEN DOING THAT THIS IS THE MOST PRESSURE THAT'S BEEN ON THIS RATING FOR SURE.
I DON'T THINK THERE'S ANY QUESTION ABOUT THAT.
PART OF THE CONVERSATION WAS TO TALK ABOUT AMENDING OR CHANGING OUR POLICIES TO ADAPT TO THIS NEW FINANCIAL REALITY AND TO SHOW THEM THAT WE ARE GOING TO CONTINUE TO MANAGE PRUDENTLY AND THAT WE ARE GOING TO BE WILLING TO ADJUST THE TAX RATE, FOR EXAMPLE, IN A YEAR WHEN WE'RE NOT AT THE 3½%, THAT WE'RE GOING TO LOOK AT OUR BUDGET PRIORITIES, WE'RE GOING TO LOOK AT OUR SERVICE DELIVERY AND WE'RE GOING TO WEIGH ALL OF THAT AND MAKE DECISIONS FROM THAT STANDPOINT.
THAT'S A DETERI DEVIATION FROM E PAST.
BECAUSE IN THE PAST WE SAID WE'RE HOLDING THE TAX RATE AND WE'LL LIVE WITH IT AND THE REVENUES FALL WE'LL MAKE A ADJUSTMENT AND THEN WE'LL RECOVER.
THE STATE MAKES THAT - THERE IS NO RECOVERY.
SO PART OF THIS WAS TO SAY KEEP IN MIND THAT IF IT CHANGES, AND HAVING STRONG FINANCIAL POLICIES HELPS US STAY -- THERE'S NOT A GUARANTEE, BECAUSE THERE'S A LOT THAT'S OUTSIDE OF OUR CONTROL THAT --
>> -- WE CAN'T CONTROL, RIGHT? BUT FOR THE THINGS THAT WE CAN CONTROL THAT PUTS US IN A BETTER POSITION TO MAINTAIN, HOPEFULLY MAINTAIN THAT RATING, AND THEN AVOID THESE KINDS OF IMPACTS.
LET'S GO TO THE NEXT -- NEXT BRIEFING HERE.
[01:30:01]
PUSHING FOR A HOMESTEAD EXEMPTION FOR THE LAST COUPLE YEARS, AND I KNOW OUR NEW COLLEAGUES COMING ON BOARD, I DON'T KNOW WHAT THEIR MAIN CONCERNS WERE GIVEN TO THEM BY THEIR -- BY THEIR NEIGHBORS AND CONSTITUENTS, BUT IT WAS CONSISTENT AGAIN THIS YEAR IN MY ELECTION.PROPERTY TAXES, CRIME AND INFRASTRUCTURE.
THOSE ARE THE THREE MAIN TOPICS.
AND AGAIN, IT WAS PROPERTY TAXES THIS YEAR.
AND I HAVE TO SAY THAT WE DO HAVE THAT 20% OF THAT TAX BILL THAT WE ARE -- THAT WE CAN CHANGE ON GIVING A HOMESTEAD EXEMPTION, AND PEOPLE -- PEOPLE ARE REALLY, REALLY CLAMORING FOR THAT.
IF YOU GO TO SLIDE 5, YOU KNOW, THERE'S BEEN TALK ABOUT -- IS THAT SLIDE 5?
>> IT COULD BE IN THE OTHER PRESENTATION.
>> PERRY: MAYBE IT'S THE OTHER.
YEAH, IF YOU LOOK AT THAT, THE VAST MAJORITY OF HOMES THAT A HOMESTEAD EXEMPTION WOULD IMPACT WOULD BE THAT LESS THAN 20 YEARS.
THE 21 TO 30 YEARS OR 30 YEARS AND ABOVE, YOU HAVE THE MAJORITY OF THOSE THAT ARE ACTUALLY BEING COVERED BY AN OVER 65 OR DISABLED TAX RELIEF.
SO THE VAST MAJORITY OF PEOPLE THAT ARE CLAMORING FOR THIS TAX RELIEF ARE THOSE THAT ARE 20 AND BELOW.
AND THAT'S 116,000 HOUSEHOLDS THAT A HOMESTEAD EXEMPTION WOULD IMPACT AND PROVIDE SOME OF THAT RELIEF.
AND A HOMESTEAD EXEMPTION DOESN'T JUST APPLY TO THE BASE HOME -- HOME OWNERSHIP.
IT ALSO WOULD APPLY TO THE DISABLED AND OVER 65, WOULD IT NOT?
IT APPLIES TO EVERY HOMESTEAD.
SO -- (VOICES OVERLAPPING) SO DISABLED AND OVER 65, THEY WOULD GET A HOMESTEAD EXEMPTION ALSO, SO THIS ISN'T JUST TARGETED FOR THOSE THAT ARE LESS THAN 65 OR DISABLED, IT APPLIES TO EVERYBODY.
SO THEY WOULD GET -- THEY WOULD GET A BREAK ALSO.
SO I JUST WANTED TO DRAW EVERYBODY'S ATTENTION TO IT.
THE VAST MAJORITY OF PEOPLE THAT WOULD REALLY GET A BIG BANG FOR THEIR BUCK IS EVERYBODY ACROSS THAT BOARD, BUT THOSE THAT ARE REALLY CLAMORING FOR IT ARE THOSE THAT ARE IN THERE -- IN THE 20 AND BELOW, BECAUSE THEY DON'T GET ANY -- THEY DON'T GET ANY BREAKS.
YOU KNOW, NOT BEING OVER 65 OR DISABLED.
SO THOSE ARE THE ONES THAT ARE REALLY CALLING FOR THAT.
THE -- THE TABLE -- AND I DON'T HAVE IT LISTED HERE -- THE TABLE THAT ACTUALLY SHOWS THE DIFFERENT PERCENTAGES AGAIN, WHICH TABLE IS THAT?
THIS ONE ON THE HOMESTEAD EXEMPTION OPTIONS?
AND IF YOU LOOK AT THAT, OVER THE LAST SEVERAL YEARS WE'VE -- IF WE LOOKED AT OUR BUDGET, WE HAVE BEEN ABLE TO -- WE COULD HAVE AFFORDED A 5% EXEMPTION BASED ON CARRY-OVERS AND EXTRA THINGS THAT WE FUNDED DURING THE MIDYEAR REVIEW, AND I -- I WOULD STILL LIKE TO SEE A 5% EXEMPTION IN THERE AND WORK IT INTO THE BUDGET SOME KIND OF WAY, BECAUSE, YOU KNOW, WE TALK ABOUT HOUSING AFFORDABILITY.
THE PEOPLE THAT ARE OUT THERE COMPLAINING ABOUT THEIR TAXES, WE AS A CITY CAN OFFER SOME MEANINGFUL TAX RELIEF TO OUR HOMEOWNERS HERE ACROSS THE CITY, AND AGAIN, FOR EVERY HOMEOWNER, NOT -- NOT -- NOT JUST THOSE THAT ARE BELOW THE 65 AND ARE NOT DISABLED.
SO I WOULD STILL LIKE TO SEE THAT AS A GOAL OR TARGET TO HELP WITH THE TAX BILLS THAT PEOPLE ARE ASKING FOR YEAR AFTER YEAR AFTER YEAR HERE FROM THE CITY.
SO I'M -- I THINK -- I THINK WE'RE ON TARGET HERE AND I'M GLAD TO HEAR THE MAYOR TALKING ABOUT THAT AS WELL, THAT'S HERE IN THE CITY THAT'S BEEN ASKED FOR, AT LEAST IN MY TWO ELECTIONS, THAT PEOPLE ARE REALLY WANTING TO SEE A HOMESTEAD EXEMPTION.
>> MAYOR NIRENBERG: THANK YOU, COUNCILMAN PERRY.
>> COURAGE: YEAH, I JUST WANT TO REMIND PEOPLE ABOUT WHAT IT SHOWS RIGHT UP HERE ON THE BOARD.
IF THERE'S A 10% EXEMPTION, IF WE WOULD HAVE RAISED THE
[01:35:02]
SENIOR EXEMPTION FROM 65 TO 75, WE'RE TALKING ABOUT $56 A YEAR, AND IN TWO OR THREE YEARS WHEN THE VALUE OF THEIR HOUSE GOES UP, IT'S GONE.IF WE GET INTO A MORE PERMANENT PROCESS OF RAISING THE EXEMPTION OVER TIME FOR ALL OF THE HOMEOWNERS, WE MAKE A MUCH BIGGER IMPACT FOR A MUCH LONGER PERIOD OF TIME.
SO I THINK THAT -- LET'S NOT LOOK AT A SHORT-TERM GAIN FOR A CERTAIN PORTION, EVEN A VERY NEEDY PORTION OF OUR POPULATION, AS OPPOSED TO A LONGER, LARGER, GREATER TERM GAIN FOR A MUCH LARGER AMOUNT OF OUR POPULATION.
SO I JUST WANTED TO PUT THAT IN FOR CONSIDERATION.
>> MAYOR NIRENBERG: THANK YOU, COUNCILMAN COURAGE.
BEN, I HAVE -- I ALSO HEAR QUITE OFTEN FROM MY CONSTITUENTS, WE WANT TAX RELIEF, WE WANT TAX RELIEF.
WHEN WE EXPLAIN TO THEM, YOU KNOW, WHAT WE CAN AND CAN'T DO, JUST SIMPLY BECAUSE OF THE CONSTRAINTS IMPOSED UPON US BY THE LAW AND MATHEMATICS, THAT AUDIO] IT'S REALLY INTERESTING, RIGHT ARE? BECAUSE PEOPLE SAY NOBODY HAS EVER EXPLAINED IT TO ME THAT WAY.
I THOUGHT YOU GUYS RAN BEXAR COUNTY APPRAISAL DISTRICT AND I THOUGHT YOU GUYS WERE IN CHARGE OF CARLOS -- NOT CARLOS, ALBERT URESTE AND PRETTY MUCH EVERYTHING THAT HAPPENS TO ME WITH REGARD TO TAXES IS YOU GUYS AND IT'S NOT TRUE.
WE HAVE THAT CONVERSATION, AND IT'S ON US AS LEADERS KNOW, YOU KNOW, AUDIO] WORKS.
AND THAT'S SOMETHING THAT WE DO QUITE OFTEN, AND COUNCILWOMAN SANDOVAL SEVEN TIMES HAS DONE THESE, YOU KNOW, HEAR THEY'RE VERY EFFECTIVE AND IT'S REALLY IMPORTANT WORK THAT WE GIVE AUDIO] AS A TOOL AUDIO].
SO I'M TRYING TO ANSWER THE QUESTION THAT'S ASKED OF ME OFTEN, WHICH IS LET'S SAY YOU GAVE ME A 10%, YOU KNOW, HOMESTEAD EXEMPTION IN AUDIO].
I THINK YOU DID THAT ANALYSIS FOR US, BUT WHAT IS THE DOLLAR AMOUNT THAT THE AVERAGE SAN ANTONIAN TAXPAYER SAVES?
>> THE AVERAGE HOMESTEAD IS $178,000 HERE ON THIS SLIDE.
THE AVERAGE SAVINGS FOR THEM, ANNUAL SAVINGS, WOULD BE $100.
>> PELAEZ: SO A HUNDRED DOLLARS OVER A YEAR, RIGHT?
>> PELAEZ: SO WHEN WE TALK TO THEM ABOUT THAT AND WE BREAK IT DOWN OVER, YOU KNOW, WHAT THEY WOULD EXPECT TO SAVE OVER A MONTH, RIGHT, PER MONTH ON THEIR TAXES, AUTHENTICITY OR GEN -- AUTHENTIC OR GENUINE TAX RELIEF, AND THE REASON IT DOESN'T SOUND THAT WAY TO THEM IS BECAUSE THEY'RE SMART.
BECAUSE IT'S NOT AUTHENTIC AND GENUINE TAX RELIEF.
[CHUCKLE] AND WHILE I CELEBRATE THE OPPORTUNITY TO DO A HOMESTEAD EXEMPTION, AND THAT'S FINE, WHAT I DON'T WANT TO DELIVER TO THESE FOLKS IS THIS EXPECTATION THAT WE ALL GO OUT THERE AND DO A VICTORY LAP AND SPIKE THE BALL AND SAY, WE GOT YOU A TAX EXEMPTION, ONLY FOR THEM TO COME BACK NEXT YEAR AND SAY, WAYS A SECOND, BCAD SENT ME THIS LOVE LETTER AND IT WASHED AWAY THIS HUNDRED DOLLAR SAVINGS, AND YOU GUYS TOOK AN INAUTHENTIC VICTORY LAP, RIGHT? AND SO WHAT OTHER OPTIONS DO WE HAVE OTHER THAN A HOMESTEAD EXEMPTION?
>> WELL, THE OTHER OPTION IS REALLY YOU CAN INCREASE THAT OVER 65 OR DISABLED EXEMPTION.
AGAIN, THAT'S A SMALLER POPULATION.
THAT ONE HAS A LITTLE BIT OF A DIFFERENT IMPACT BECAUSE THEY'RE ALREADY FROZEN, 65 WE RECALCULATE THE TAX BILL THAT'S FROZEN, SO IF YOU DECIDE TO INCREASE THAT EXEMPTION IT JUST LOWERS THAT AMOUNT, BUT ONCE THEY GET TO 65 THEY'RE NOT EXPERIENCING MAYBE WHAT OTHER HOMEOWNERS ARE EXPERIENCING.
YOU'RE HAVING VALUE CHANGES AND MY BILL IS GOING UP.
IT CAN'T GO UP, REGARDLESS IF THE HOME GOES UP BY 10% VALUE, THAT TAX BILL IS FROZEN.
>> SO WE'VE GOT LIMITED OPTIONS, IT'S THE HOMESTEAD EXEMPTION, THE OVER 65 EXEMPTION, THE DISABLED EXEMPTION.
I THINK IT'S ALSO IMPORTANT FOR US --
>> OH, PROPERTY TAX REDUCTION IF YOU WANTED TO DO THAT.
>> PELAEZ: WE COULD DROP OUR RATE, RIGHT?
AND I THINK THE NEW REALITIES, COUNCILMAN, IS THAT EVERY YEAR WE'RE AT 3½% WE ARE GOING TO BE DROPPING THE RATE.
>> SO THE $100 ANNUAL SAVINGS FOR THE HOMESTEAD EXEMPTION EXAMPLE WE JUST WENT THROUGH, WHAT IS THAT NET HIT TO THE CITY, BUDGET?
>> WELL, $14.8 MILLION TO THE GENERAL FUND, $9 MILLION TOT SERVICE FUND, SO $24 MILLION INE $9 MILLION IN THE DEBT SERVICE, REMEMBER, THAT'S AN ANNUAL AMOUNT THAT WE APPLY
[01:40:01]
TOWARDS THE DEBT SERVICE, SO YOU'RE TALKING ABOUT PROBABLY WELL OVER A HUNDRED MILLION DOLLARS IN CAPACITY.>> PELAEZ: SO WHAT WORRIES ME IS OVER THE LAST TWO BUDGET CYCLES, WE DID THE MATH IN MY OFFICE, WE BROUGHT HOME -- AND BY BRING HOME, I MEAN WE BROUGHT BACK TO DISTRICT 8 ABOUT $13.8 MILLION IN ADDITIONAL POLICE HEADCOUNT, FIRE HEADCOUNT AND EQUIPMENT AND FACILITIES FOR FIRE AND POLICE.
HAVING TO GO BACK AND SAY, LOOK, IN EXCHANGE FOR YOUR $100 A YEAR, WE WOULD HAVE HAD TO FIGURE OUT HOW TO NOT DO THAT AND CONTINUE TO DELIVER THE SERVICES, RIGHT? OR CUT SERVICES IN SOME OTHER PLACES IN ORDER TO CONTINUE THE INVESTMENT THAT WE MADE, RIGHT? BECAUSE I DO ASK THE FOLKS, WOULD YOU BE OKAY WITH ME NOT BRINGING HOME THAT AMOUNT, YOU KNOW, IN THE NEXT BUDGET CYCLE? AND MOST OF THEM SAY, ARE YOU CRAZY, RIGHT? I WANT YOU TO BRING HOME MORE AND SO THAT'S -- I MEAN, I GET IT.
THERE'S -- TO THEM IT MAKES MATHEMATICAL SENSE, RIGHT, THAT WE TAX LESS, SPEND MORE BUT REALLY DON'T SPEND MORE.
THERE'S A WHOLE BUNCH OF MAGICAL THINKING GOING ON AND OUR JOB AS LEADERS IS TO ALSO HELP -- YOU KNOW, HELP EXPLAIN HOW TAXATION WORKS.
I'M A TAXPAYER TOO AND I HATE PAYING TAXES.
I'M A BUSINESS OWNER AND I HATE PAYING TAXES.
BUT WELCOME TO THE FIRST WORLD COUNTRY.
THIS IS HOW WE PAY FOR THINGS.
THE OTHER THING I WANT TO LET YOU KNOW IS I'M LOOKING AT THE PURPOSE OF FINANCIAL POLICIES, AND THE LAST POINT IS TO CONTRIBUTE TO THE CITY'S CREDIT PROFILE.
AND SO WHEN YOU DO SHOW US THE AAA BOND RATINGS EVERY SINGLE YEAR, I MEAN, THAT'S PART OF SETTING THESE FINANCIAL POLICIES, RIGHT, IS TO MAKE SURE THAT WE CONTINUE TO MAINTAIN THAT HEALTH, AND, YOU KNOW, FOR THE PAST 45 YEARS I'VE BEEN LIVING WITH A PRETTY HEALTHY CHOLESTEROL SCORE BUT MY DOCTOR CONTINUES TO CHECK MY CONGRATULATES EVERY SINGLE YEAR AND JUST BECAUSE I'VE HAD IT FOR 44 YEARS DOESN'T MEAN WE SHOULD STOP CHECKING.
AND NOW WE CHECK MY A 1 C AND ALL THAT.
I'VE HAD GREAT SCORES THE PAST SEVERAL YEARS BUT IT WOULD BE RIDICULOUS TO SUGGEST TO MY FRIENDS WE NEED TO STOP CHECKING THOSE THINGS BECAUSE IT'S A DOWNER.
AND SO I -- I WANT TO MAKE SURE THAT EVERY SINGLE TIME THAT YOU HAVE AN OPPORTUNITY TO REMIND US WHAT OUR CREDIT SCORE IS, THAT WE EMBRACE THAT OPPORTUNITY AND WE HAVE A CONVERSATION ABOUT IT.
THERE'S NOTHING WRONG WITH HAVING A CONVERSATION ABOUT HOW MAYBE IT'S OKAY FOR US TO DAMPEN THU ENTHUSIASM FOR OUR PROJECTS, BECAUSE THAT'S THE POINT.
POINT OF FISCAL LEADERSHIP IS TO MAKE SURE THAT OUR EYES AREN'T BIGGER THAN OUR WALLET, RIGHT? THANKS SO MUCH, MAYOR.
>> MAYOR NIRENBERG: THANK YOU, COUNCILMAN PELAEZ.
>> HALL: AND THANK YOU, MAYOR, AND THIS IS FROM AN OUT GOING COUNCILMAN WHOSE OPINION MAY NOT MATTER.
BUT I DID WANT TO -- I WAS GOING TO MAKE THIS POINT ANYWAY, BUT COUNCILMAN PERRY KIND OF IT'S ALONG WHAT COUNCILMAN PELAEZ WAS SAYING AS WELL.
MY BACKGROUND WAS IN PUBLIC FINANCE, AND SO WE STRUCTURED BONDS SO WE WERE VERY FAMILIAR WITH BOND RATINGS AND THAT KIND OF THING.
AND SO I'M ONE OF THESE THAT IS OF THE OPINION THAT YOU -- THAT THE BOND RATING IS SOMETHING YOU PROTECT.
AND MY COMPLETE LENS WAS FIRST THE BOND RATING, BECAUSE WHAT THE BOND RATING DOES, IT TELLS YOU FROM AN OUTSIDE ENTITY HOW WELL YOU'RE DOING, YOUR POLICIES, YOUR STRUCTURE AND ALL THAT KIND OF STUFF AS WELL, BUT THERE'S ALSO A FISCAL IMPACT.
AND SO LEVEL STEP, I THINK YOUR SLIDE SHOWED 17 TO $37 MILLION FISCAL IMPACT PER YEAR THAT COMES OUT OF THE BUDGET IF THE BOND RATING DROPS.
SO WE GOT TWO OUT OF THREE THAT STILL KEEP US AT THE AAA, BUT FOR ME THAT'S THE LENS THAT I LOOKED AT AND I WOULD ENCOURAGE COUNCIL MEMBERS TO LOOK AT WHEN THEY'RE LOOKING AT THE BUDGET.
AND SO HOW DOES THAT TRANSLATE INTO -- INTO POLICY AND PRACTICE? AND THIS IS SOMETHING THAT I PERSONALLY DID WHEN I WAS ON COUNCIL, IS I WENT OUT TO -- AND THIS IS BEFORE WE HAD THE AAA BOND RATING.
I WENT OUT TO ALL -- I THINK THE TOP FIVE, FIVE OR SEVEN OF THE LARGE CITIES WITH AAA BOND RATINGS, AND OF COURSE THEY LOOK AT LOTS OF THINGS BUT THE TWO THINGS THAT WERE CONSISTENT FOR ALL FIVE TO SEVEN OF THOSE CITIES WERE TWO THINGS.
NUMBER ONE, A TWO-YEAR BUDGET, AND NUMBER TWO, A RESERVE RATE, AND I THINK MOST OF THOSE ENTITIES WERE AT 30%.
THOSE OTHER CITIES DON'T HAVE SOMETHING THAT WE HAVE IN SAN ANTONIO, WHICH IS CPS, BUT FOR ME THOSE TWO THINGS WERE WHAT WE IMPLEMENTED WHEN I WAS ON COUNCIL, AND THE YEAR AFTER THAT OUR BOND RATING SHOT UP TO AAA.
AND SO MY MENTALITY -- MY SUGGESTION TO YOU ALL AS COUNCIL IS I WOULD PROTECT TWO THINGS.
APART FROM THE BOND RATINGS TWO THINGS.
THE TWO-YEAR BUDGET, AND THE CONSTANT ADDITION TO THE RESERVE.
I THINK AT THAT POINT WE MIGHT HAVE BEEN AT 7 OR 8%.
I'M GLAD TO SEE IT'S AT 15%, AND I WOULD ENCOURAGE US TO GET HIGHER THAN THAT AND MAYOR SUGGESTED THIS MAY NOT
[01:45:01]
BE THE RIGHT TIME AND HE'S PROBABLY RIGHT, BUT I THINK MENTALLY WE AS A COUNCIL OR YOU ALL AS A COUNCIL SHOULD REALLY BE LOOKING TO INCREASE THAT RESERVE GOING FORWARD.SO WHEN I THINK ABOUT POLICY AND PRACTICE AND BUDGETING PROCESS, I WOULD BE OPEN TO EXEMPTIONS, I'M OPEN TO TAX CAPS AND ALL THE STUFF THAT'S HAPPENING, ALAMO COLLEGE WILL BE MAKING A REQUEST.
YOU'VE GOT LOTS OF THINGS THAT ARE HAPPENING AROUND, BUT AT THE END OF THE DAY IF I CAN SUPPORT IT AND STILL KEEP THE TWO-YEAR BUDGET AND A 15% RESERVE AND PLUS, THEN HEY, I'M ALL FOR IT.
BUT ANYTIME WE START TO DIG INTO THAT RESERVE OR REDUCE FROM A TWO-YEAR BUDGET, THEN AT THAT POINT I THINK YOU'RE HAVING PROBLEMS. NOW, THAT SAID, WHEN WE THINK ABOUT THE -- WHAT WAS I GOING TO SAY -- RIGHT NOW WE GIVE A $52 MILLION -- GIVE UP $52 MILLION A YEAR BECAUSE UNDER CURRENT POLICY AND EXEMPTIONS.
AND SO IF WE INCREASE THAT THAT'S GOING TO INCREASE THAT $52 MILLION TO SOMETHING, DEPENDING ON WHAT YOU ALL DO AS A COUNCIL.
AND WHEN YOU DO THAT AND, YOU KNOW, INCREASE THAT EXPENSE TO THE BUDGET YOU'VE GOT TO CUT FROM SOMEWHERE.
SO JUST KNOW THAT IN ORDER TO BE ABLE TO KEEP YOUR TWO-YEAR BUDGET AND BE ABLE TO KEEP YOUR 15% RESERVE, YOU MAY HAVE TO CUT INTO OTHER AREAS AND GOING BACK TO COUNCILWOMAN SANDOVAL'S POINT, THAT MAY BE STREETS, THAT MAYBE DRAINAGE, IT MAY BE OTHER THINGS, BUT AT THE END OF THE DAY THERE'S GOT TO BE A CONSTANT BALANCE, AND IT'S OKAY TO SUPPORT REVENUE REDUCTION ITEMS, BUT YOU'VE ALSO GOT TO BE ABLE TO SUPPORT COST REDUCTION ITEMS IN ORDER TO BE ABLE TO KEEP WHAT I BELIEVE ARE THE TWO CRITICAL THINGS TO FINANCIAL HEALTH AND POTENTIALLY AAA BOND RATING.
>> MAYOR NIRENBERG: THANK YOU, COUNCILMAN HALL.
>> SALDANA: THANK YOU, MAYOR, AND BEN, YOU'VE BEEN REALLY WONDERFUL IN THE WAY THAT YOU'VE BEEN PRESENTING THIS, BECAUSE I THINK YOU'VE DONE IT IN A WAY THAT IS BOTH SOBERING TO POLICY MAKERS WHO HAVE BEEN HERE FOR A WHILE AND EYE OPENING TO THOSE INDIVIDUALS WHO ARE COMING THROUGH AS NEW COUNCIL MEMBERS.
AND EACH TIME YOU'VE SORT OF REMINDED US THAT WE DIDN'T GET HERE BY ACCIDENT.
IT REALLY WAS ON PURPOSE, AND A GOOD EXAMPLE OF THAT IS IF YOU TRACK THE CITY'S AAA RATING AND WHEN WE DIDN'T HAVE OUR AAA RATING, IF YOU TRACK, TO COUNCILMAN HALL'S POINT, BACK IN 2003, 2005-ISH, WE STARTED ADDING TO OUR RESERVE.
WE STARTED GETTING BETTER RATINGS AS A CITY, AND SO HAPPEN BY ACCIDENT AUDIO] IMPORTANT DECISIONS AND JUST THAT EASILY I THINK WE CAN TAKE THEM FOR GRANTED AND SAY 15% ISN'T THAT BIG OF A DEAL, LET'S MOVE IT DOWN TO 14.
AND LOOK, IF THE FORMULA HAS PROVEN ITSELF TO BE BROKEN AT THIS POINT I THINK WE SHOULD CONTINUE WITH THESE VERY PRUDENT, CONSERVATIVE WAYS TO MANAGE OUR BUDGET, AND I'M GRATEFUL THAT YOU'VE GIVEN US SOME OF THAT NOW.
I JUST WANT TO POINT TO ONE OR TWO SLIDES, 10 AND 11.
BECAUSE I WANT TO MIRROR BACK I THINK WHAT YOU TOLD ME AND MAKE SURE THAT I'VE GOT THIS RIGHT.
>> SALDANA: SO IN 1994 WHEN WE WERE AT A 59 -- I CALL THAT A 59 CENTS --
>> YES, 59-CENT TAX RATE, FOR THAT SAME EFFORT WE WERE PROBABLY GETTING LESS THAN WHAT WE'RE GETTING CURRENTLY AT A LOWER RATE OF 55.
WHAT YOU TOLD ME IS THAT WE'RE GOING TO CONTINUE TO MOVE DOWN IN THIS TREND SO THAT THE CITY TAXPAYER WHO RECEIVES THEIR BILL IS GOING TO SEE NOT A 55.8, THEY'RE GOING TO SEE A 54, 53, MAYBE NOT BY OUR CHOOSING.
YOU'RE SAYING THAT DECISION NOW IS BEING FORCED UPON BY THE STATE.
SO BEFORE UNDER CURRENT LAW YOU GOT AN 8% ROLLBACK RATE.
SO WE COULD HOLD THIS RATE AS BASE VALUES FOR GROWING AS LONG AS WE DIDN'T EXCEED 8%.
WE DID A COUPLE YEARS AND WE ROLLED IT BACK TO THE 8% AND WE PUT IT THERE.
WHEN THEY LOWERED TO 3½ IT LOOKS MORE LIKE SLIDE 13, SO THIS IS THE SAME -- THIS IS THE LAST FIVE YEARS ARE ARE.
THE ACTUAL TAX RATE IS THE ACTUAL TAX RATE THAT YOU ALL ADOPTED AS PART OF THE DUCT.
THAT LAST COLUMN IS WHAT THE TAX RATE WOULD HAVE BEEN HAD THE 3½% CAP BEEN IN PLACE, SO IT WOULD HAVE ACTUALLY THIS YEAR INSTEAD OF ADOPTING A TAX RATE OF A LITTLE OVER 34.6 CENTS, WE'D BE AT 31 CENTS, AND THIS LOWERING OF THE TAX RATE WOULD HAVE HAD TO HAVE HAPPENED UNLESS YOU CALLED FOR AN ELECTION TO CALL FOR AN INCREASE IN THE TAX RATE.
BUT THAT'S A DYNAMIC THAT'S CHANGED, IS THAT -- I THINK WE LOWERED IT SEVEN TIMES OVER THAT -- ON THAT PREVIOUS SLIDE.
END OF THE YEAR [INDISCERNIBLE] GROWTH, THE TAX RATE IS GOING TO HAVE TO COME DOWN.
>> PLEASE TAKE ME THROUGH THIS VERY SAME EXERCISE BUT DON'T USE 2015 TO 2019.
[01:50:03]
TO 2014, BECAUSE THOSE -- [INDISCERNIBLE] HALF OF THIS DECADE IT WAS A RECESSION.>> AND IF YOU ARE SOMEBODY WHO FOLLOWS THE MARKET, SOMEBODY WHO READS THE NEWSPAPER, YOU'LL KNOW THAT A RECESSION IS -- IS POTENTIALLY LIKELY IN THE NEXT DECADE, SO WHAT YOU'RE GOING TO BE FACED WITH, FUTURE COUNCILS, IS YEARS THAT LOOK MORE LIKE 2010 TO 2014.
NOW, IN THAT CASE WE COULD KEEP OUR TAX RATE, AS LONG AS IT DOESN'T GO ABOVE 3½%.
HELP ME THINK THROUGH THAT WITH THE SAME EXERCISE.
>> SAME CONCEPT AS THE 8%, WHAT YOU JUST SAID, DOWNTOWN HAVE TO DECREASE YOUR TAX -- YOU DON'T HAVE TO DECREASE YOUR TAX RATE IN 2010 TO 2014 ON THIS SLIDE.
WHAT WE'RE PROPOSING AS PART OF THE POLICY IS YOU ACTUALLY RAISE IT IN SOME OF THOSE YEARS.
AND WE HAD THIS CONVERSATION AS WE WERE UP THERE TALKING WITH THE STATE ABOUT IN AUDIO] WE HAVE HISTORICALLY SAID, LOOK, WE'RE GOING THROUGH THESE NONGROWTH PERIODS, WE'RE NOT GOING TO INCREASE THE TAX RATE.
BUT WE DID THAT WITH THE EXPECTATION WHEN WE GOT TO 2015 COMING OUT OF RECESSION, YOU'RE GOING TO GET GROWTH, WE CAN RECOVER.
WE CAN MANAGE FOR A COUPLE YEARS OF HAVING THAT KIND OF IMPACT.
WE CAN'T MANAGE THAT LIKE RECOVERY.
WHAT THE STATE DID WAS THEY CAME IN AND SAID, WE'RE GOING TO CHOP THAT 2015 TO 2019 OFF.
SO WE'D LIKE YOU TO CONSIDER DEVIATING FROM THE POLICY OF NOT CHANGING THE TAX RATE AND WHEN WE LOOK AT YEARS LIKE 2014 AND PRIOR, THAT IN SOME OF THOSE YEARS WE MAY NEED TO ADJUST THE TAX RATE UP.
>> BEN, YOU'RE VERY SMART, AND I WANT TO TRY TO SAY WHAT YOU'VE SAID IN A WAY THAT I WOULD TO EXPLAIN IT TO AN ELEMENTARY KID STUDENT.
SO WHAT IS GOING TO HAPPEN IN THE FUTURE, STUDENTS OR KIDS, IS THAT WE'RE GOING TO GO POTENTIALLY INTO A RECESSION AND WE WON'T BE ABLE TO GO BACK AND SAY IN GOOD YEARS WHEN WE GOT UP TO 4 OR 5%, WE'RE NOT GOING TO BE ABLE TO SAY WE CAN USE THAT EXTRA FUNDING THAT WE HAD AND PLUG THE HOLE.
DURING A RECESSION WHEN PEOPLE ARE PROBABLY SUFFERING THE MOST, WE'RE GOING TO HAVE TO ASK FOLKS TO PAY MORE IN THE TAX RATE BECAUSE WE'RE GOING TO GO UP TO 3 A 3½%.
THERE WOULD BE AN ADJUSTMENT, BUT REMEMBER THAT A COUPLE OF THINGS.
PROPERTY TAXES ACTUALLY LAG THE ECONOMY, SO WHEN YOU LOOK AT LIKE --
>> IT TAKES A WHILE FOR THE PROPERTY TAXES 20 CATCH UP WITH THE ECONOMY SO WE WOULD BE LOOKING AT MORE OF THOSE YEARS WHERE THE ECONOMY HAS KIND OF RECOVERED.
WE'RE NOT IN THE DEPTH OF THE RECESSION AND MAYBE WE START TO INCH THAT TAX RATE UP.
THE OTHER THING THAT COMES INTO PLAY IS THE CARRY FORWARD, SO IF WE'RE NOT USING THAT 3½ THEN WE CAN CARRY IT FORWARD.
WE REALLY WANT IT FIVE YEARS BECAUSE YOU CAN SEE AS WE COME OUT IT TAKES A LITTLE TIME FOR THAT TO HAPPEN.
FIVE-YEAR WOULD HAVE GIVEN US A LOT OF FLEXIBILITY.
THREE YEARS GIVES US SOME FLEXIBILITY, BUT IT -- IT REALLY IS GOING TO LEAVE US SHORT AT THE END OF THE DAY.
>> YEAH, I THINK I'M WEAR -- IF I WERE A POLICY MAKER IN THE NEXT BUDGET SESSION I'D BE EXACTLY WHERE COUNCILWOMAN GONZALEZ IS ON THIS, IS IF YOU CONSIDER THE POSSIBILITY OF A RECESSION, IF YOU CONSIDER THE IMPACTS WHICH WE HAVE NOT YET BEEN ABLE TO MEASURE AROUND SB 2, THE STATE IS TELLING THE CITIES, YOU'RE GOING TO BRING IN LESS REVENUE, NOT BY CHOICE BUT BY FORCE, AND THEN AT THE SAME TIME IF WE AS A COUNCIL WANT TO START TALKING ABOUT WAYS TO BRING IN LESS REVENUE BECAUSE THAT'S WHAT A HOMESTEAD EXEMPTION WOULD BE, IT'S THE CITY WILLINGLY SAYING, WE'RE GOING TO TAKE IN LESS REVENUE.
I WOULD BE OKAY WITH ALL OF THAT IF AT THE SAME DOORS THAT FOLKS ARE ASKING ME FOR PROPERTY TAX RELIEF, THEY'RE NOT ALSO ASKING FOR MORE POLICE PATROLS, THEY'RE NOT ALSO ASKING FOR MORE PARKS INVESTMENTS AND DRAINAGE INVESTMENTS, AND WE CAN'T SEPARATE THE TWO, AS MUCH AS FOLKS ARE LOOKING FOR PROPERTY TAX RELIEF, I'D BE -- SORRY.
SOMEBODY IS ALREADY YELLING AND SCREAMING ABOUT MY POSITION ON THIS.
[LAUGHTER] I THOUGHT I'D AT LEAST GO BACK TO AN EMAIL, BUT NOW I'M GETTING IT REALTIME.
[LAUGHTER] YEAH, THE IDEA OF PROPERTY TAX RELIEF I THINK IS A QUESTION OF WILL YOU BE ABLE TO DELIVER TO THE RESIDENT? BECAUSE WE HAVE LOWERED OUR TAX RATE, AND YOU WOULD ASSUME PEOPLE WOULD PAT US ON THE BACK FOR LOWERING OUR TAX RATE, BUT THEY'RE LIKE, LOOK, I DIDN'T FEEL IT.
I'M AFRAID THAT IF YOU DO A HOMESTEAD EXEMPTION ACROSS THE BOARD YOU'RE GOING TO GET TO THE POINT WHERE YOU'RE GOING TO HAVE FOLKS SAY, LOOK, I DIDN'T FEEL IT.
WE NEED MORE, BUT YOU'RE ALSO -- IT ALSO MEANS YOU TOOK IN LESS REVENUE, SO YOU'RE GOING TO HAVE TO GET IT FROM SOMEWHERE, AND IT'S FROM THE SAME FOLKS THAT ARE ASKING FOR MORE SERVICES.
SO I THINK THAT'S THE REAL TENSION TO THIS.
AND I THINK, AGAIN, I'LL REITERATE, FOLKS WHO NEED TAX RELIEF ARE NOT FOLKS WHO
[01:55:02]
HAVE A $500,000 HOME OR A MILLION-DOLLAR HOME, BECAUSE THEY TAKE IN MORE, NO DOUBT, AND I THINK THE FOLKS -- IF YOU WERE MAKING JUST AN ARGUMENT ON WHO NEEDS TAX RELIEF THE MOST THERE WOULD BE FOLKS IN MY DISTRICT WHO NEED THAT, AND I JUST DON'T KNOW HOW DO YOU ACROSS THE BOARD AND SAY, YEAH, RICH FOLKS NEED AS MUCH TAX RELIEF AS POOR FOLKS.BUT IN THIS CASE WE'RE GOING TO GIVE RICH FOLKS MORE OF THE SAVINGS, BECAUSE THEY'VE GOT MORE EXPENSIVE PROPERTY.
AND LOOK, YOU ALL HAVE TO DEAL WITH THAT TENSION AT THE SAME TIME THAT YOU ALL -- YOU WANT TO TAKE MORE REVENUE -- TAKE REVENUE AWAY FROM THE CITY AT THE SAME TIME THAT YOU WANT TO PROVIDE MORE SERVICES, AND I JUST DON'T THINK THE TWO MATCH UP.
SO, MAN, THEY'RE REALLY GIVING IT TO ME ON THIS.
[LAUGHTER] SO I THINK THAT'S A REALLY DIFFICULT CONVERSATION THAT YOU'VE GOT, AND THERE'S TOO MANY UNKNOWNS, WITH THE POTENTIAL OF A RECESSION, WITH SB 2, THE LOSS OF REVENUE FROM CPS -- I'M SORRY, FROM THE RIGHT-OF-WAY THAT YOU'RE LOSING 7 MILLION OFF THE TOP NEXT CYCLE, AND I THINK THAT THAT'S A REALLY -- I'D BE WHERE COUNCILWOMAN GONZALES IS, LET'S JUST WAIT THIS OUT BEFORE WE TALK ABOUT AN ACROSS THE BOARD HOMESTEAD EXEMPTION.
LAST THING, I'M REALLY GLAD THAT WE'VE HAD THAT MILLION DOLLAR IN CONTINGENCY, NOT JUST FOR THE TWO THAT MARIA LISTED BUT BECAUSE THERE'S THINGS OUTSIDE OF OUR CONTROL WE TOOK ON, THE TORNADO OUTSIDE DISTRICT 1IS, WE HAVE TO GO INTO OUR CONTINGENCY FUNDS FOR THAT.
THERE WAS A FIRE AT THE FORMER POBLANO'S, THAT WE HAD TO TIE INTO OUR CONTINGENCY FUNDS FOR THAT SO THOSE ARE THINGS YOU CAN'T CONTROL.
SO THAT MILLION DOLLAR HAS BEEN THERE TIME AND TIME AGAIN PROVEN AS A NECESSITY IN MOST CASES, UNFORTUNATELY.
SO WITH THAT I THINK, MAYOR, YOU ALL HAVE A -- AN IMPORTANT CONVERSATION TO TAKE UP, BUT PLEASE KEEP IN MIND THAT PROPERTY TAX RELIEF IS IMPORTANT AT THE FRONT DOORSTEPS OF A LOT OF FOLKS AS WELL AS THE SERVICES THAT COME ALONG WITH THAT AND YOU'RE TALKING ABOUT LIMITING THE REVENUE COMING INTO THE CITY AND I DON'T THINK YOU CAN DO BOTH.
THAT'S JUST MY OPINION ON THAT.
>> MAYOR NIRENBERG: THANK YOU, COUNCILMAN SALDAÑA.
WE'LL MOVE ON NOW TO THE INFRASTRUCTURE STREETS.
YOU'RE IN, COUNCILMAN? YOU'RE NOT SHOWING UP HERE.
OKAY, COUNCILMAN TREVINO, ONE MORE.
AND, YOU KNOW, I'M GOING TO HAVE TO AGREE WITH COUNCILWOMAN GONZALES AND SALDAÑA ON THIS, AND SO, YOU KNOW, I WAS TRYING TO PLUG IN SOME OF THE NUMBERS, SO I DEFINITELY WANT TO SIT DOWN WITH YOU, AND I AM OPEN TO HAVING THIS CONVERSATION ABOUT -- ABOUT A HOMESTEAD EXEMPTION, BUT I THINK PART OF THIS, AND I THINK COUNCILMAN HALL REALLY TOUCHED ON IT IS UNDERSTANDING WHERE WE ACTUALLY STAND ON THE NUMBERS, BECAUSE I WAS TRYING TO DO SOME OF THE CALCULATIONS.
SOME OF THIS JUST DIDN'T MATCH UP WITH WHAT I UNDERSTAND TO BE SORT OF OUR -- ALL OUR POTENTIAL HOMESTEADS.
SECONDLY, YOU KNOW, I JUST WANT TO POINT OUT THAT UP TO 47% OF OUR FOLKS -- OF OUR COMMUNITY ARE RENTERS.
THIS WOULD NOT IMPACT THEM AT ALL.
IN FACT, I THINK IT PUTS A LOT OF PRESSURE ON THEM IN THE LONG RUN.
AND SO WE JUST NEED TO HAVE A BROADER CONVERSATION.
YOU KNOW, WE KNOW -- WE HAVE THE INFORMATION THAT TALKS ABOUT HOW OUR RENTERS ARE PAYING -- EARN LESS AND PAY MORE THAN -- A LOT OF THEM PAY MORE THAN 30% OF THEIR INCOME TOWARDS -- TOWARDS RENT.
WE JUST HAD A MEETING AT THE APPRAISAL DISTRICT, AND WE'RE GOING TO BE AUDITING ALL THE HOMESTEADS, AND WHY WE'RE DOING THAT IS BECAUSE WE KNOW THAT NOT EVERYBODY IS TAKING ADVANTAGE OF THE OVER 65, AND CERTAINLY NOT EVERYBODY IS TAKING ADVANTAGE OF THE HOMESTEAD, AND THAT'S ALSO KIND OF VICE VERSA, WE KNOW THAT THERE'S A LOT OF PEOPLE WHO ARE TAKING ADVANTAGE OF THOSE THAT DO NOT ACTUALLY QUALIFY, RIGHT? SO I THINK WE NEED TO HAVE A DISCUSSION ABOUT HOW THAT AUDIT IS GOING TO TURN OUT AND HOW IT MAY IMPACT YOUR NUMBERS, BEN.
>> I WAS NOT FAMILIAR WITH THE AUDIT, BUT WE COULD CERTAINLY LOOK AT THAT.
>> TREVINO: WHAT I'M SAYING IS, MY POINT IS THE AUDIT -- THE PROPOSAL OUT INLONDON AS WE -- OUTLINED AS WE DO THE AUDIT, THE PROPOSAL SAYS THERE'S GOING TO BE A LOT OF FOLKS WHO ARE NOT TAKING ADVANTAGE OF THE HOMESTEAD AND THE OVER 65 THAT ARE GOING TO BE BROUGHT IN.
OBVIOUSLY THAT'S GOING TO BE OFFSET BY THOSE WHO DON'T QUALIFY, BUT THERE'S GOING TO BE AN ADDITIONAL AMOUNT.
WOULDN'T THAT IMPACT YOUR NUMBERS?
>> YES, IT WOULD IMPACT THE AMOUNT -- YES.
[02:00:02]
(VOICES OVERLAPPING).>> TREVINO: BE MORE ELABORATE.
SO I GUESS WHAT I'M GETTING AT IS, YOU KNOW, THIS -- I THINK WHAT WE'RE SEEING IS IT'S GOING TO IMPACT US EVEN MORE THAN WHAT YOU'RE SHOWING.
SO I -- ONE OF THE REASONS WE DID THAT DATA SHARING CCR A COUPLE YEARS AGO WAS BECAUSE WE WANT TO MAKE SURE THAT THIS INFORMATION IS AVAILABLE TO YOU.
SO JUST KNOW, IN LIGHT OF YOUR PRESENTATION I JUST WANT TO POINT OUT THAT THE NUMBERS ARE NOT NECESSARILY COMING OUT THE WAY -- AT LEAST THE WAY I THINK THAT YOU'VE CALCULATED THEM, AND MORE -- AND MORE IMPORTANTLY I THINK WE'RE GOING TO HAVE, YOU KNOW, ADJUSTMENT OF THAT FROM THE APPRAISAL DISTRICT, BECAUSE THEY'RE AUDITING THAT, OR THEY'RE GOING TO AUDIT.
AND SO WE NEED TO -- I THINK WE NEED TO GET IN TOUCH WITH THEM, FIND OUT WHAT THAT TIMELINE IS AND THEN MAYBE INFORM THIS COUNCIL ABOUT THAT INFORMATION SO THAT WE CAN BE MORE ACCURATE ABOUT THIS.
SO THAT'S WHY I AGREE WITH COUNCILWOMAN GONZALES AND SALDAÑA ABOUT, YOU KNOW, LET'S BE MORE METHODICAL ABOUT WHERE WE'RE REALLY LANDING ON THIS, BECAUSE I THINK THIS IS A MUCH BIGGER IMPACT THAN YOU'VE EVEN PRESENTED.
AND AGAIN, I ALSO WANT TO POINT OUT THAT THE APPRAISAL DISTRICT DOES DO A LOT TO INFORM RESIDENTIAL HOMEOWNERS ABOUT THEIR PROTESTING RIGHTS.
THEY'VE DONE 43,000 PROTESTS NOW AT 87% SUCCESS RATE.
I ENCOURAGE ANYONE, AND, IN FACT, ANYONE OF YOU ALL WANT TO TOUR WITH ME THE APPRAISAL DISTRICT AND SEE THAT PROCESS, I ENCOURAGE YOU TO DO THAT.
IT IS -- IT IS A VERY, VERY OPEN PROCESS AND CERTAINLY ENCOURAGE FOLKS TO GET MORE AWARE ABOUT HOW THEY CAN PROTEST AND HOW THEY SHOULD DO IT.
AND THEN LASTLY, I MEAN, I THINK, YOU KNOW, WE WANT TO -- WE ALSO WANT TO BE CLEAR ABOUT WHAT PROPERTY TAXES ARE.
PROPERTY TAXES ARE YOUR APPRAISAL AND YOUR TAX RATE.
THAT'S NOT -- IT'S NOT ONE OR THE OTHER.
AND WE DO HAVE TO HAVE SOME TOUGH DISCUSSIONS ABOUT THAT AND WHAT THAT REALLY MEANS AND HOW IT CUTS -- HOW IT COULD POTENTIALLY CUT SERVICES, AS COUNCIL MEMBER SALDAÑA POINTED OUT.
IT'S INCREDIBLY COMPLEX, AND THERE'S A LOT OF THINGS OUT THERE THAT IN WORKING WITH THE TAX ASSESSOR, URESTE, THAT ARE AVAILABLE TO PEOPLE WHO NEED HELP, LIKE TAX DEFERMENTS, ESPECIALLY FOR THOSE OVER 65.
SO WE WANT TO BE -- WE WANT TO HELP EDUCATE PEOPLE ABOUT THAT.
RECENTLY HAD SOMEBODY COME UP TO ME AND SAY, YOU KNOW, PROPERTY TAXES ARE SO UNFAIR, AND I JUST NOTICED MY LAND VALUE, MY LAND PRICES SKYROCKET, AND I CAN'T DO ANYTHING ABOUT IT.
WELL, WE KNOW THAT PART OF THAT HAS BEEN HOW WE HAVE -- WE'RE DOING A WIDE AREA REZONING, AND IN SOME CASES THERE'S PROPERTIES THAT ARE ON TOP OF ZONED LAND THAT HAS A HIGHER VALUE FOR USE AND THE APPRAISAL DISTRICT HAS NO OTHER OPTION THAN TO APPRAISE IT TO THAT ZONING VALUE.
AND THAT'S WHY WE'RE DOING THE WIDE AREA REZONING.
AND THIS IS A STATE THAT DOES NOT DISCLOSE SALES INFORMATION.
I KNOW A LOT OF PEOPLE THINK THAT THEY DO.
AND SO IT DOES HAVE TO SORT OF -- IT'S A LITTLE CAT AND MOUSE GAME.
BUT, YOU KNOW, WE NEED TO HAVE THAT DISCUSSION, AND CERTAINLY HAVING A DISCUSSION ABOUT OUR TAX RATE IS VERY WELCOME, AND WE'RE GOING TO BE -- I THINK WE'RE GOING TO BE HAVING OUR OWN FORUM ABOUT TAX RATE AND WHAT IT MEANS TO FOLKS SO THEY CAN SEE HOW THEY'RE IMPACTED.
I MEAN, WE DO HAVE TO MAKE SOME TOUGH DECISIONS, AND EVERY DISTRICT IS IMPACTED A LITTLE DIFFERENT FROM THE OTHER.
>> COUNCILMAN, WE'LL REACH OUT TO THE BEXAR APPRAISAL DISTRICT.
WE WORKED WITH THEM AND PULLED FROM THEM, BUT WE'LL REACH BACK OUT TO THEM, AND WHEN I MENTIONED THE NUMBERS MAY CHANGE IT'S ON THE PROPERTY TAX RELIEF SIDE.
SO IF WE END UP WITH A LOT OF PEOPLE THAT AREN'T ON THE THE AGE 65 TAX EXCEPTION --
>> NO, IT'S NOT YOUR FAULT, THIS WAS LITERALLY ON MONDAY, SO THIS IS COMING UP, AND I KNOW THAT INFORMATION STILL HASN'T BEEN RECEIVED AND I THINK WE JUST NEED TO CREATE A TIMELINE SO THAT IT CAN BETTER INFORM YOUR NUMBERS.
>> MAYOR NIRENBERG: THANK YOU, COUNCILMAN TREVINO.
WE'RE GOING TO MOVE NOW TO THE FIRST OF THREE OF OUR
[02:05:02]
INFRASTRUCTURE ITEMS. THIS IS FOR PRESENTATION PURPOSES ONLY.WE'LL TAKE SOME QUESTIONS, BUT KEEP IN MIND IF THERE'S A DEBATE IT WILL HAPPEN AT THE GOAL SETTING SESSION.
I WILL SAY ONE LAST THING, THOUGH, WHILE JEFF IS HERE AND BEN IS STILL HERE, WITH REGARD TO THE IMPACT OF PROPERTY TAX RELIEF, DIFFERENT FORMS, IT WOULD BE GOOD TO HAVE A SENSE OF THAT FROM THE NOW SIGNED HB 3.
I MEAN, WE PLAYED A SIGNIFICANT ROLE IN THAT.
THE CITIES ACROSS THE STATE DID.
AND THAT WILL HAVE AN IMPACT, A POSITIVE IMPACT ON HOMEOWNERS IN TERMS OF THE BUYDOWN OF THE SCHOOL TAX RATE.
SO WE HEAR IT FROM THE OTHER SIDE.
LET'S ALSO TALK ABOUT THE RELIEF THAT WAS FOUND AT THE STATE LEVEL THAT WILL BENEFIT US AS WELL.
>> MAYOR, SO ROSIE WILL COVER STREETS AND INFRASTRUCTURE TOPICS AND I'LL SUGGEST THAT SINCE WE'RE DOING THIS WITH PLENTY OF TIME WE CAN MOVE POLICE AND FIRE TO TOMORROW AFTERNOON.
THIS IS ALL DESIGNED TO GIVE YOU TIME TO ASK QUESTIONS.
WE'RE NOT ASKING YOU IN THESE TOPICAL AREAS FOR BUDGET DIRECTION.
IT'S ALL THE PREP WORK, AGAIN, FOR JUNE 21.
SO WE ARE HAPPY TO RESPOND TO QUESTIONS, GET ADDITIONAL DEAT AND MAKE SURE THAT -- DATA, AND MAKE SURE THAT YOU'RE PREPARED FOR JUNE 21.
SO WE'LL MOVE POLICE AND FIRE TO TOMORROW AFTERNOON AND LET ROZI HAVE TIME THIS AFTERNOON.
>> GOOD AFTERNOON, MAYOR AND COUNCIL.
I'M ROZI, INTERIM DIRECTOR [INDISCERNIBLE] FOR TRANSPORTATION AND CAPITAL IMPROVEMENT DEPARTMENT, OR TCI.
BEFORE I START MY PRESENTATION I'D LIKE TO ENTER THIS VIEW OF MY -- INTRODUCE MY TEAM MEMBER, CHRISTIE CHAPMAN, FOR SUPPORT GROUP, AND [INDISCERNIBLE], MATTHEW GARZA FOR STORM WATER, AND ART REINHARDT FOR TRANSPORTATION AND PROJECT DELIVERY.
OUR MISSION STATEMENT REINNOVATION AND AUDIO] AN IMPLEMENTATION OF INFRASTRUCTURE NEED AND IS ACCOUNTABLE TO ITS RESIDENTS.
WE HAVE THROUGHOUT THE CITY 1,155 ROADWAY, 38% OF THOSE IN AUDIO] CONDITIONAL GRADE B.
14% IS IN FAIR CONDITION OR GRADE C, AND ANOTHER 14% IN POOR CONDITION, GRADE D, AND 10% IN GRADE F, WHICH IS FAILED CONDITION.
USUALLY FOR EXCELLENT CONDITION WE USE A CRACK SEAL AND SEALCOAT.
FOR STREET WITH A GOOD CONDITION WE USE -- FAIR CONDITION, [INDISCERNIBLE] OVERLAY, AND FOR STREET POUR AND FAIL FOR [INDISCERNIBLE] OVERLAY AND FAILURE REPAIR [INDISCERNIBLE] CONSTRUCTION FOR FAILED STREET.
AS I MENTIONED, WE HAVE 4,155 CENTER MILE ROADWAY THROUGHOUT THE CITY.
IF WE HAVE TO BRING ALL OF THESE ROADWAY FOR EXCELLENT CONDITION IT WILL COST US 1.5 BILLION TO BRING THEM TO EXCELLENT CONDITION OR GRADE A.
OUR GOAL IS TO MAINTAIN NETWORK AT AVERAGE PAYMENT CONDITION INDEX OF 70 OR ABOVE.
HOW WE DO THAT, WE HAVE TWO PROGRAM.
ONE IS A PRESERVATION, WHICH IS CRACK [INDISCERNIBLE] AND STORY SEAL AND MICROSURFACING AND ONE IS [INDISCERNIBLE] WHICH INCLUDES OVERLAY, [INDISCERNIBLE] AND OF COURSE RECONSTRUCTION.
AS YOU CAN SEE ON THE GRAPH ON THE RIGHT, SINCE 2019 TO -- 2009 TO 2015, OUR STREET FUNDING HAS BEEN 30 TO 41,000 -- 41 MILLION DOLLAR, AND [INDISCERNIBLE] ALMOST DOUBLE THE FUNDING, AND LAST TWO YEARS TRIPLED COMPARED IN 2009.
THAT ABILITY TO DO MAINTENANCE ON MANY ROADWAY PROJECTS, AND
[02:10:03]
ALSO BE ABLE TO RECONSTRUCT SOME OF THOSE STREETS WHICH WAS A D OR F CONDITION.OUR TWO-YEAR STREET IMPROVEMENT STRATEGY IS 2018, WHICH WAS THE FIRST YEAR WE HAD 99 MILLION FUNDING BRING ALL OF THE DISTRICT IN SAN ANTONIO AVERAGE PCI ABOVE 70.
OVER 760 HAVE BEEN MAINTAINED IN AUDIO] WITH LOW PCI.
AS YOU CAN SEE IN GRAPH RIGHT, WE HAD FIVE AUDIO] IN 2017, THEIR AVERAGE PCI WAS BELOW 70, AND WE ARE PREDICTING BY COMPLETION OF 2019 PROGRAM ALL TEN OF THEM IN SAN ANTONIO WILL BE 70 OR ABOVE 70.
IN 2000 MILLION BASED ON AUDIO] AND 35 MILLION WAS DISTRIBUTED BASED ON ANY COUNCIL DISTRICT HAD AVERAGE PCI BELOW 70.
IN 2019, WHICH THE FUNDING WAS INCREASED BY 11 [INDISCERNIBLE] MILLION, 100 [INDISCERNIBLE], 64 MILLION WAS REDISTRIBUTED BASED ON PROPORTIONALITY, 35 [INDISCERNIBLE] ANY COUNCIL DISTRICT HAD A PCI AUDIO] C AND D GREATER THAN ROADWAY, IN LOOP 14 AND ALL THE AREA IN COUNCIL DISTRICT 8 AND 9.
MOVING FORWARD AUDIO] DISTRIBUTION, 110 MILLION TO DIVIDE BY 50/50, WHICH IS 105 MILLION AND THE OTHER 55 BASED ON THE CONDITION.
SOME COUNCIL DISTRICT IN AUDIO] BASICALLY 50 TO [INDISCERNIBLE] TO GO FOR CONDITION AND 50 FOR THE SIZE OF THE NETWORK.
STATEMENT AND PROGRAM DELIVERY.
PROJECT HAS COMPLETED WITHIN 12 MONTHS.
THIS PROJECT CAN BE DONE WITHIN YEAR OR EVEN LESS.
DESIGN BEGAN AUDIO] WITHIN 18 TO 24 MONTHS.
USUALLY THIS PROJECT REQUIRES DESIGN, IT REQUIRES UTILITY COORDINATION AND OF COURSE CONSTRUCTION TAKES LONGER THAN PRESERVATION.
9 MILLION WAS FUNDED FROM ADT AND 10 MILLION FROM 2017 BOND PROGRAM.
WE HAVE OVER 5,000-MILE OF SIDEWALK.
WE HAVE SLIGHTLY UNDER 1900-MILE OF GAPS, AND WE ARE COMPLETING 45% OF WHAT WE WERE PLANNING TO DO THIS YEAR SO FAR.
FOR 2020 WE ARE RECOMMENDING 17 MILLION, 5 MILLION FROM ADT AND 12 MILLION FROM BOND PROGRAM.
AND WE ARE WORKING WITH EACH COUNCIL DISTRICT TO IDENTIFY THIS PROJECT, ESPECIALLY THE ONE FUNDED BY BOND TO START CONSTRUCTION OF THOSE PROJECT.
WORKING WITH COUNCILMAN TREVINO WE ARE LOOKING REALLY TO [INDISCERNIBLE] DESIGN AND BUILD SIDEWALK.
WE ARE LOOKING TO REDUCE SOME OF THE THINGS THAT DOESN'T REALLY NEED TO BE DONE TO MAKE SURE WE CAN BUILD MORE MILEAGE FOR THE MONEY AVAILABLE.
FOR STREET ALL WE ARE GOING TO DO SIDEWALK NO RETAINING WALL, NO CURB, NO DRIVEWAY
[02:15:05]
CONSTRUCTION.WE ARE AVERAGING $48 [INDISCERNIBLE] SIDEWALK, BUT OF COURSE WE ARE COMPLICATE THE SIDEWALK PROJECT WHEN THERE IS A RETAINING WALL OR DRIVEWAY HAS TO BE REBUILT BECAUSE OF A SLIPPERY -- STEEPER SLOPE.
THEY ARE COSTING $84, AND WE ARE STILL WORKING WITH EACH COUNCIL DISTRICT TO IDENTIFY THE PROJECT CAN BE DONE FASTER AND LESS EXPENSIVE.
AS YOU CAN SEE ON THE GRAPH ON THE LEFT, THIS GRAPH IS FOR FIVE MONTHS OF THE FIVE YEARS.
WHAT I MEAN, THEY START FROM JANUARY TO MAY OF 2015, 2016, ALL OF THEM IS THE FIRST FIVE MONTHS OF EACH YEAR.
WE MAKE SURE WE WANT TO COMPARE APPLE TO APPLE.
THE VEHICULAR FATALITY HAS GONE DOWN.
MOTORCYCLE FATALITY HAS BEEN FLATTED OR HAS GONE DOWN ON CERTAIN YEAR -- COMPARING CERTAIN YEARS.
PEDESTRIAN HAS BEEN FLAT FOR CERTAIN YEARS BUT GONE UP UNFORTUNATELY FOR OTHER YEARS, AND BICYCLE HAS BEEN FLAT COMPARING SOME YEARS AND HAS GONE DOWN COMPARING SOME OTHER YEARS.
WE HAD IN 2019 1 MILLION FOR BIKE.
WE ARE DOING HALF A MILE -- HALF A CENTER MILE RAILWAY BIKE TRAIL, BIKE LANE RESTRIPING, AND I SAY BIKE, IT'S [INDISCERNIBLE].
WE HAVE DONE 80% OF WHAT WE WERE PLANNING TO DO.
WE HAVE 173 LANE MILES, 13 PAT MILES AND 74 ROUTE MILES.
WE ARE ALSO LOOKING TO UPGRADE OUR BICYCLE MASTER PLAN.
OUR BICYCLE MASTER PLAN WAS DONE IN 2011.
IS REALLY MORE LINE IN AUDIO] REALLY HAVING VERY DETAIL TO MAKE SURE THIS MASTER PLAN WE CAN IMPLEMENT.
OUR IDEA IS TO HAVE SIGNIFICANT AMOUNT COMMUNITY INPUT AND ALSO WE MAKE SURE WHAT WE ARE PLANNING -- WHAT WE ARE PLANNING WE CAN END UP DESIGNING AND BUILDING.
AS MANY OF YOU KNOW, CERTAIN ROADWAY DOES NOT HAVE THE RIGHT-OF-WAY TO PROVIDE EITHER SIDEWALK, PROTECTED BIKE LANE AND ALSO FOR TRAFFIC TO FLOW.
WE WANT TO IDENTIFY THESE WHEN WE ARE WORKING ON BICYCLE MASTER PLAN.
WE ARE ASKING TOMORROW $50,000 TO USE SOPHISTICATED SOFTWARE TO BE ABLE TO COLLECT 10,000 SURVEY BY END OF THIS YEAR, PROVIDE COMMUNICATION AND MARKETING MATERIAL TO DISTRIBUTE AT MINIMUM OF FIVE COMMUNITY INPUT MEETING PER COUNCIL DISTRICT.
THAT'S END OF MY PRESENTATION.
I'M AVAILABLE TO ANSWER ANY QUESTION YOU MAY HAVE.
>> SO COUNCILWOMAN, LET ME -- THERE'S A COUPLE OF KEY TAKE-AWAYS THAT ARE PART OF THE PRESENTATION.
ONE WAS ROZI SHOWED THAT THE STRATEGY THAT WAS LAID OUT TWO YEARS AGO TO RAISE THE PCI SCORE IN ALL THE DISTRICTS, WE'RE PROJECTING THAT WE WILL ACHIEVE THAT BY THIS YEAR.
SECONDLY, AND IT KIND OF GOES BACK TO SOME INTERNAL WORK BUT ALSO A QUESTION THAT COUNCILMAN COURAGE ASKED AT THE FORECAST PRESENTATION, WHICH IS IF WE HAVE $10,000, ARE WE SPENDING IT? THAT'S RIGHT, 110 MILLION, NOT A HUNDRED -- YEAH, THAT WOULD BE EASY, I GUESS.
[LAUGHTER] THAT'S LIKE ONE-SQUARE-FOOT OF SIDEWALK.
[LAUGHTER] ARE WE SPENDING IT, ARE WE BEING EFFICIENT? AND SO ONE OF THE CONCEPTS THAT WE'RE LOOKING AT, AND WE CAN FURTHER DEVELOP AND HAVE READY ON THE JUNE 21ST, BUT RIGHT NOW AS WE -- AS THE AMOUNT OF MONEY WE'VE SET ASIDE FOR STREET MAINTENANCE PROJECTS HAS GONE UP FROM 25 MILLION UP TO 110 MILLION, WE'RE SEEING BETWEEN 25 AND $30 MILLION FOR STREET RECONSTRUCTION PROJECTS.
THOSE ARE NOT ANNUAL PROJECTS.
THE PREVENTATIVE WORK ON A STREET WE CAN GET DONE IN ONE YEAR.
SO THE CONCEPT IS POTENTIALLY HAVING AN ANNUAL STREET MAINTENANCE BUDGET AND A BIANNUAL STREET RECONSTRUCTION BUDGET SO WE CAN ALIGN THE DOLLARS APPROPRIATELY.
RIGHT NOW ROZI AND TCI, BASED ON THE RESPONSE TO COUNCILMAN COURAGE'S QUESTION THAT WE SHARED WITH ALL THE COUNCIL FROM THE FORECAST, THEY'RE PROJECTING TO HAVE ALL OF THE 19
[02:20:02]
PROJECTS DONE, FY '19 PROJECTS DONE BY MID SPRING OF 2020.AND THE PROJECTS THAT ARE ON THE BACK END OF THAT ARE THESE RECONSTRUCTION PROJECTS.
WE'VE GOT TO DO DESIGN IN ONE YEAR, CONSTRUCTION ON THE SECOND YEAR.
SO THAT'S -- THAT'S ONE TAKE -- THAT'S THE SECOND TAKE-AWAY THE OTHER CONCEPT THAT'S BEING INTRODUCED, AND IT'S FOR DISCUSSION, AND FOR YOU TO THINK THROUGH TODAY, THROUGH THE 21ST IS, IF WE'VE BEEN ABLE TO THROUGH OUR EQUITY LENS RAISING SCORES CITYWIDE, THAT 70 PCI, WHAT'S NEXT.
WE WANT TO MAKE SURE WE'RE MAINTAINING IT, WE WANT TO MAKE SURE WE'RE EFFICIENTLY USING DOLLARS, AND HOW DO WE BALANCE IN THE -- THE THOUGHT THAT WE'RE PRESENTING TODAY IS RECOGNIZING -- TAKING INTO CONSIDERATION THE SIZE OF THE NETWORK BY DISTRICT, BUT ALSO THE CONDITION, RIGHT? SO IT'S GOT TO BALANCE.
YOU'VE GOT THE QUALITY OF THE NETWORK, OR THE SCORE, VERSUS THE SIZE OF THE NETWORK, THE QUANTITY.
AND WE PLAYED AROUND WITH A COUPLE OF DIFFERENT OPTIONS, AS WE WERE PREPARING FOR THIS SUMMER AND THIS PRESENTATION, AND THE MORE WE TALKED INTERNALLY, IT SEEMED BEST TO MAKE IT AN EVEN SPLIT.
THERE ARE -- AND YOU SAW THE SLIDE THAT WE HAVE, SLIDE 5 THAT SHOWS WHAT THE AVERAGE PCI SCORE IS FOR -- THAT WE'RE PROJECTING BY THE END OF THE YEAR, AND THERE IS A DIFFERENCE THERE, BUT THERE'S ALSO A DIFFERENCE IN THE SIZE OF NETWORKS AND THE SIZE OF THE ROADWAY BY COUNCIL DISTRICTS.
THE LAST TAKEAWAY IS PROBABLY MORE FOR DISCUSSION ON THE 21ST IS TO CONNECT SA AND HOW THAT FITS INTO THE LARGER ISSUES FROM THE COMMUNITY PERSPECTIVE, BUT MORE IMPORTANTLY FROM THE CITY'S PERSPECTIVE.
THAT PROBABLY IS PROBABLY MORE CONVERSATION FOR THE 21ST.
SO RIGHT NOW, AS MY COLLEAGUES HAVE CHIMED IN, WE'RE LOOKING AT THE OVERALL -- LOOKING AT THESE TWO-YEAR IMPROVEMENT STRATEGIES, AND THIS DIRECTION, THAT YOU'RE LOOKING FOR DIRECTION.
IS THIS WHAT WE WANT TO LAY OUT WHEN WE'RE LOOKING AT ON THE 21ST.
THESE ARE THINGS TO KIND OF THINK THROUGH AND --
WE COULD GO ALL AFTER THIS PRESENTATION RIGHT NOW.
BUT I UNDERSTAND THE STRATEGY IS WHAT WE'RE LOOKING FOR AND SEEING IS THIS THE RIGHT DIRECTION, OR IF WE WANT TO SEE SOME OTHER LAYERS ON THERE.
I JUST WANTED TO MAKE A COMMENT ABOUT THE -- I DON'T GET TO SAY THIS -- MAYBE I DO GET TO SAY THIS NOW, BUT BACK IN MY DAY, BACK IN 2011, WE WERE DOING ABOUT $33 MILLION INTO STREETS INFRASTRUCTURE.
AND I THINK WE'VE NOW BUMPED IT UP TO WHAT, ROZI, 110?
>> SALDANA: YOU WOULD THINK YEAR AFTER YEAR -- THIS IS ANNUAL.
WE'VE REALIZED 110 THIS YEAR, WE'LL REALIZE 110 NEXT YEAR.
THE MONEY IS INCREASED FOR STREETS, AND WHAT HASN'T DECREASED IS THE AMOUNT OF FOLKS COMPLAINING THAT MY STREET DOESN'T GET DONE.
SO I THINK THAT'S A GOOD EVIDENCE POINT, LIKE A DATA POINT THAT WE CAN POINT TO THAT YOU CAN SAY, LOOK, BECAUSE WE'RE PUTTING MORE MONEY INTO STREETS, THAT'S EVEN A SQUARE INCH -- YEAH.
BECAUSE I HAVE A LOT OF CONVERSATIONS WITH FOLKS WHO SAY, TELL MOW ABOUT MY STREETS, TELL ME ABOUT MY SIDEWALK.
I SAY, LET ME GET A PROJECTION, BECAUSE I WANT TO GET A COST ESTIMATE.
WE CAN DO THE SIDEWALKS, I'VE SEEN ENOUGH OF THESE, WE CAN DO 120, $300,000 WORTH OF SIDEWALK PROJECT.
THEIR EYES WIDEN AND THEY'RE SAYING, IT COSTS THAT MUCH TO DO TWO BLOCKS OF SIDEWALKS? IT SHOULDN'T COST THAT MUCH.
BUT REALLY, THESE ARE BIG NUMBERS WE'RE TALKING ABOUT NOW.
AND AT THE SAME TIME THAT WE'VE INCREASED THE AMOUNT OF FUNDING GOING INTO STREETS, WE'VE INCREASED THE AMOUNT OF BOND PROJECTS WE'VE DONE FROM SCALES OF 500 MILLION WHEN I CAME ON TO NOW CLOSE TO 815 MILLION.
THERE'S STILL A DEMAND OUT THERE.
I THINK THAT REALLY HELPS US PUT INTO PERSPECTIVE WHY IT'S REALLY TOUGH FOR US TO HAVE CONVERSATIONS ABOUT REDUCING THE YEARS GOING FORWARD.
AS WE CONTINUE TO GROW, WE CONTINUE TO AGE AS WELL, AND THE STREETS ARE NOT FROZEN IN TIME.
THEY TAKE A TON OF MAINTENANCE AND A TON OF RECOVERY.
I WANT TO TAKE THIS OPPORTUNITY TO SAY THANK YOU TO ROZI AND HIS STAFF.
I'M GLAD YOU HAVE IT ON THIS SLIDE, BECAUSE I WANT TO GIVE KUDOS TO MY TEAM.
[02:25:02]
SO DISTRICTS 1 THROUGH 5 ALL COLORED IN BLUE, BECAUSE THEY HAVE A LOW PCI SCORE, BUT FOR SOME REASON, DISTRICT 4 IS AT A 73.MUST BE ONE HECK OF A COUNCILMAN.
[LAUGHTER] MUST HAVE BEEN STOCKING AWAY MONEY WHILE EVERYBODY ELSE WAS FIGHTING OVER PENNIES.
LOOK AT WHO'S GETTING EXTRA MONEY IN THAT EQUITY BUDGET, DISTRICT 10.
[LAUGHTER] EVEN THOUGH HE'LL VOTE AGAINST -- SO, I THINK THIS IS ONE OF THE ISSUES THAT WE GET.
IF YOU LOOK AT ANY ARTICLE, AND WE'RE ALL -- FOR ALL OF US, IT'S REALLY DIFFICULT TO RESIST THE URGE TO GO INTO THE COMMENT SECTIONS ON A LOT OF THESE THINGS.
WE SEE FOLKS SAY, GET BACK TO THE BUSINESS OF STREETS, AND DRAINAGE, AND POLICE OFFICERS, THE PROOF IS IN THE PUDDING, THE PROOF IS IN THE MONEY 689 YOU CAN LOOK AT OUR BUDGET TO SEE WHERE OUR VALUES ARE AND YOU CAN SEE THE BIGGEST FOCUS IN POLICE AND FIRE, AND RIGHT AFTER THAT IT'S IN THE STREETS.
WE'VE INCREASED TO 110 MILLION AND IT'S GROWING YEAR AFTER YEAR.
I WANT TO TAKE THIS OPPORTUNITY TO THANK YOU, ROZI.
COUNCILMAN, WE HAVE THE DATA, IN 2017 EXCELLENT STREETS IN SAN ANTONIO WAS 25% OF OUR ENTIRE NETWORK.
BY END OF 2019 PROGRAM, THAT'S GOING TO BE 38%.
THAT'S A SIGNIFICANT IMPROVEMENT WE'RE SEEING FROM ADDITIONAL ESTIMATE.
[INDISCERNIBLE] WAS 30%, NOW THERE'S 24%.
IT'S GOING DOWN, WHICH IS GOOD.
THE NUMBERS ARE GOING UP, BUT THEY'RE GOING IN A DIFFERENT CATEGORY.
>> BUT IT USED TO BE 15%, NOW THERE'S 14%, THEY'RE MOVING TO BE BY GRADE B AND SO ON.
WE CAN SEE THIS MONEY IS MAKING BIG IMPROVEMENT.
>> SALDANA: ROZI, HERE'S THE ONE QUESTION I'VE GOT FOR YOU, THAT WILL LEAD INTO 2022.
SOMEBODY, I THINK IT WAS THEN LET OUT A NUMBER, I DON'T KNOW IF HE SHOULD HAVE, BUT HE DID, HE SAID WE'VE GOT CAPACITY TO DO A $925 MILLION BOND PROGRAM IN 2022.
THAT'S THE FIRST TIME I'VE SEEN THAT NUMBER.
HERE'S SOMETHING THAT YOU TAUGHT ME, ROZI, WHICH IS, 925, 850 MILLION, THAT'S ALMOST SMALL MINUSCULE NUMBERS IF YOU LOOK UP NORTH 80 MILES AND LOOK AT WHAT AUSTIN IS PROGRAMMING.
OBVIOUSLY THEY HAVE A BIG BUDGET AND THEY'VE PASSED BILLION-DOLLAR BOND PROGRAMS FOR THEIR STREETS, FOR TRANSPORTATION, FOR HOUSING, AND YOU POINTED OUT SOMETHING THAT'S IMPORTANT TO POINT OUT TO THE WHOLE COUNCIL WHICH IS, IT DOESN'T MATTER HOW BIG THE BOND PROGRAMS ARE, BUT CAN THEY EXECUTE ON THEM.
NOT ONLY CAN THEY EXECUTE ON BUILDING AN ACTUAL STRATEGY FOR SPENDING $1.5 BILLION ON STREETS, DO YOU HAVE THE CONSTRUCTION WORKERS, THE CONTRACTORS WHO CAN ACTUALLY DO THAT WORK, BECAUSE AT SOME POINT YOU GET TO THE BOTTOM END OF THAT BELL CURVE, AND THERE'S JUST NOT ENOUGH CAPACITY, PEOPLE, AND WHEREWITHAL WITHIN A DEPARTMENT TO EXCUSE THESE BIG BOND PROPOSALS.
NOW YOU ALL AN ORGANIZATION, WE AND ERIK HAS SEEN THIS, BEN HAS SEEN THIS, WE'VE GROWN INTO MOVING FROM A $500 MILLION BOND PROPOSAL TO AN $850 MILLION BOND PROPOSAL.
WE DON'T WANT TO PASS THESE THINGS AND GET TO THE END OF FIVE YEARS AND SAY, WELL, WE'VE GOT 50% COMPLETION OF THOSE PROJECTS, WHICH AUSTIN MAY BE IN A SITUATION THEY MAY NOT BE ABLE TO EXECUTE SPENDING ALL THIS MONEY AND BUILD ALL THOSE PROJECTS IN THE TIME FRAME.
I THINK AS WE TALK ABOUT CAPACITY OF OUR BOND PROPOSAL IN 2022, WE ALSO TALK ABOUT CAPACITY OF EXECUTING ON THEM.
THE WORST THING YOU CAN DO TO DAMAGE THE REPUTATION 6 OF THE CITY IS SAY YOU GO OUT AND BILLION DOLLARS THESE FACILITIES AND GET TO THE NEXT FIVE YEARS AND SAY, WE ONLY DID ABOUT 70% OF THAT.
GOOD LUCK PASSING A BOND PROPOSAL AFTER THAT.
I WANTED TO MAKE SURE YOU TALKED ABOUT THAT.
>> COUNCILMAN, BEN MENTIONED THAT.
I MAKE A NOTE, HE CANNOT CHANGE IT, BECAUSE IT'S A RECESSION.
>> SALDANA: YOU CAN GO SHOPPING NOW.
>> IF YOU GO BACK -- GO BACK ONE SLIDE, PLEASE.
AT THE VERY TOP THERE, YOU KNOW, TCI IS PROJECTING, OR ESTIMATING THAT WE HAVE $1.5 BILLION WORTH OF NEED FROM A STREET STANDPOINT ONLY.
SO WHEN YOU START TO TALK ABOUT
[02:30:01]
NUMBERS THAT LARGE, A 900 SOME AUD MILLION DOLLAR BOND PROGRAM THAT TAKES INTO ACCOUNT DRAINAGE, PARKS, FACILITIES, YOU START TO REALIZE HOW, FROM A MAINTENANCE STANDPOINT AND PREVENTION STANDPOINT, IF WE DON'T MAKE THE TYPE OF ANNUAL INVESTMENTS WE'RE MAKING, THEN THAT NUMBER WILL EXPONENTIALLY GROW OVER TIME.>> SALDANA: YOU'RE SAYING IF WE WERE ONLY SPENDING $33 MILLION ON THESE STREETS, THEY WOULD BE AGING, DECAYING, CRACKING, AND THE BOND PROPOSALS WOULD HAVE TO COST YOU MORE.
>> THE SCORES ROZI JUST LAID OUT THEY WOULD GET WORSE WHICH WOULD DRIVE THE TOTAL NEED NUMBER UP.
>> COUNCILMAN, TO DELIVER A PROJECT, YOU HAVE TO HAVE STAFF, NOT JUST A NUMBER, EXPERIENCE A NUMBER OF THE BOND PROGRAM.
YOU HAVE TO HAVE GOOD AUDIO] BECAUSE ON EVERY PROJECT WE HAVE LUCKILY CITY OWNS A THOUSAND CPAS.
THEN YOU HAVE TO HAVE CONTRACTORS TO BUILD THOSE PROJECTS.
WE HAVE VERY GOOD RELATIONSHIP WITH THE CONTRACTOR.
AND THEY REALIZE HOW MUCH OF OUR PROGRAM IS GROWING EVERY YEAR.
WE HAVE A NUMBER OF CONTRACTORS, THEY DO MAINLY STREET MAINTENANCE PROGRAM.
THEY HAVE OPENED THEIR OWN ASPHALT PLANT.
THEY WANT TO BE ABLE TO MAKE ASPHALT WHENEVER THEY WANT, HOW MUCH THEY WANT, NIGHT, WEEKEND.
AND THAT'S THE REASON WE HAVE BEEN ABLE TO DELIVER MANY BONDS, AND MANY LARGE [INDISCERNIBLE] PROGRAM.
I THINK, ERIK, YOU CLARIFIED A LITTLE BIT OF IT.
I KNOW WHEN WE DID THE EQUITY BUDGET FOR STREET MAINTENANCE, DISTRICT 5 DIDN'T GET AS MUCH AS I WOULD HAVE ANTICIPATED, IN LARGE PART BECAUSE WE HAVE A SMALLER STREET NETWORK.
AND I THINK YOU CLARIFIED THAT.
ONE OF THE THINGS MY COLLEAGUES HAVE HEARD ME TALK ABOUT THIS NOW FOR A LONG TIME, THAT DISTRICT 5 IS THE MOST SUSTAINABLE DISTRICT IN OUR CITY.
OTHERS MAY BE, TOO, I HAPPEN TO KNOW THE VERY INTIMATE DETAILS OF MINE, IS THAT WE HAVE A GRID NETWORK WHERE ALL OUR STREETS CONNECT TO EACH OTHER, AND WE ALSO HAVE MORE NARROW STREETS.
SO THE AVERAGE STREET IN DISTRICT 5 IS 28 FEET, WHERE THE AVERAGE STREET IN DISTRICT 10 IS 32 FEET.
AND SO, THEREFORE, YOU HAVE MORE ASPHALT, AND THEN GET MORE FUNDING FOR STREET MAINTENANCE.
SO THOSE ARE THINGS TO CONSIDER.
YOU KNOW, IN DISTRICT 10, AND ONLY BECAUSE I'M MAKING THE COMPARISON, MAYBE IT WOULD BE THE SAME AS 9, BUT YOU HAVE A LOT MORE CUL-DE-SACS.
MORE EXPENSIVE TO MAINTAIN THAN STREET NETWORK THAT CONNECTS TO EACH OTHER.
SO IN ALMOST EVERY STREET IN MY DISTRICT, YOU CAN CONNECT TO ANY OF THE MAJOR CONNECTORS, OR ARTERIALS.
SO THAT MAKES FOR A MUCH MORE SUSTAINABLE NETWORK.
SO I HOPE THAT WE ARE CONSIDERING THAT AS ONE OF THE THINGS WHEN WE'RE TALKING ABOUT SUSTAINABILITY OF OUR CITY.
FOR EXAMPLE, HAVE 10 HOUSES PER SQUARE MILE VERSUS A DISTRICT -- I COULD GIVE MANNY'S, FOR EXAMPLE -- MAYBE TWO OR THREE HOUSES PER SQUARE MILE.
IF EACH HOUSE WAS AVERAGED AT 200,000, WE PRODUCE MUCH MORE TAX DOLLARS THAN A SQUARE MILE THAT MAYBE ONLY HAS FOUR HOUSES AT 200,000.
IF WE HAD 10 AT THAT RATE, WE'RE PRODUCING MORE INCOME.
JUST SOME EXAMPLES OF HOW I KNOW OUR COMMUNITY TO BE MUCH MORE SUSTAINABLE, BUT WE'RE ALSO MORE DENSE.
SO DISTRICT 5 HAS A SMALLER FOOTPRINT THAN OTHERS.
EVEN THOUGH WE HAVE THE SAME POPULATION.
SO ALL THOSE THINGS I THINK ARE JUST EXAMPLES WHY DISTRICT 5 IS THE BEST DISTRICT OF ANY OTHER IN THE CITY.
[LAUGHTER] SORRY, I JUST COULDN'T RESIST, I HAD TO GO THERE.
BUT THE OTHER QUESTION THAT I DO HAVE REGARDING EVEN SIDEWALKS IS, FOR EXAMPLE, I PUT $10 MILLION IN THE BOND FOR SIDEWALKS IN MY DISTRICT.
BUT THEY ALSO DIDN'T GO AS FAR AS ANOTHER, BECAUSE WE HAVE THINGS THAT MADE IT MORE IN AUDIO] SO WE HAD UTILITY POLES.
WE HAVE RIGHT-OF-WAY CONCERNS.
ONE OF THE THINGS THAT HAPPENED, FOR EXAMPLE, OVER TIME, WE INTENDED TO, FOR EXAMPLE, PUT A SIDEWALK ON A STREET.
WELL, OVER TIME, PEOPLE JUST SORT OF TOOK OVER THAT RIGHT-OF-WAY, BECAUSE THEY THOUGHT, WE'RE NEVER GOING TO GET SIDEWALKS ANYWAY, WE'RE
[02:35:01]
GOING TO GO AHEAD AND EXTEND THE FENCE LINE TO THE STREET.BECAUSE WE ARE MAINTAINING THE PROPERTY ANYWAY.
WELL, THEN WHEN WE WANTED TO PUT A SIDEWALK IN, YOU'RE GOING TO HAVE TO TALK TO YOUR NEIGHBOR AND SAY, HEY, YOU NEED TO TAKE YOUR STREET BACK -- YOUR FENCE BACK, BECAUSE NOW YOU'RE ENCOACHING ON THE RIGHT OF WAY.
SO WE HAD A LOT OF ISSUES THAT CAME UP THAT MAYBE OTHER DISTRICTS DIDN'T.
BUT IMPACTED THE AMOUNT OF SIDEWALK WE COULD ACTUALLY LAY, BECAUSE WE HAVE OBSTRUCTIONS.
SO I DON'T KNOW HOW THAT FITS INTO WHEN WE'RE DISTRIBUTING FUNDS FOR SIDEWALKS.
IF WE CAN'T LAY AS MANY SIDEWALKS BECAUSE THERE'S UTILITY POLES IN THEM, THAT SHOULDN'T DETRACT FROM THE NUMBER OF SIDEWALKS, OR THE LANE MILES THAT WE GET, BECAUSE IT'S MORE EXPENSIVE TO DO IT.
AND THAT STILL COMES OUT OF THE SAME SIDEWALK BUDGET.
>> COUNCILWOMAN, WE ARE WORKING BRAND-NEW SIDEWALK WITH POLE IN IT.
[INDISCERNIBLE] YOU HAVE SOME MONEY FROM THE BOND SIDEWALK.
YOU CAN PROVIDE US THOSE LIST AND LET US EVALUATE AND WORK WITH YOUR OFFICE.
>> I KNOW THAT'S TRUE, THAT YOU'RE WORKING WITH CPS, BUT THERE ARE STILL COSTS ASSOCIATED WITH THAT.
ISN'T THAT STILL PART OF THE SIDEWALK BUDGET?
WE DO NOT PAY FOR CPS TO REMOVE THEIR POLE.
>> I THINK THAT'S IMPORTANT INFORMATION.
BECAUSE THAT'S NOT THE INFORMATION I WAS GETTING FROM THE CONTRACTORS WHO WERE TELLING ME THAT, YOU KNOW, DOLLAR FOR DOLLAR, DISTRICT 5 ENDS UP GETTING LESS SIDEWALK MONEY BECAUSE WE STILL ARE PAYING FOR THE REMOVAL OF THE CPS POLES.
SO THAT INFORMATION I GOT FROM A CONTRACTOR.
THEY DO IT BECAUSE OF THE PROJECT, BOND-FUNDED PROJECT, THEY DO AT THEIR COST AUDIO].
THAT'S VERY IMPORTANT INFORMATION.
BECAUSE I DID FEEL LIKE PERHAPS WE WERE NOT GETTING OUR -- WELL, THAT IT WAS GOING TO OTHER THINGS.
WE HAVE A VERY OLD COMMUNITY, HAS FOR A LONG TIME HAVE FELT LIKE THEY WEREN'T GETTING SUFFICIENT ATTENTION.
SO THEY KIND OF WENT ABOUT THEIR BUSINESS EXTENDING THEIR PROPERTY LINES AND KEEPING IT, BECAUSE THEY FIGURED NOBODY'S GOING TO COME IN AND BUILD SIDEWALKS.
SO THAT'S A COMMUNICATION ISSUE WE HAVE IN OUR COMMUNITY THAT I THINK DOESN'T EXIST EVERYWHERE.
BUT WE'RE WORKING THROUGH THAT.
THOSE ARE, I THINK, ALL OF THE QUESTIONS THAT I HAVE.
I KNOW THAT WE ARE SEEING A LOT OF WORK IN THE NEIGHBORHOOD, AND PEOPLE ARE VERY GRATEFUL.
AND SO HOWEVER, WE KNOW THAT IT'S STILL -- I MEAN, THERE'S STILL SO MUCH MORE WORK TO DO.
AND IT'S TRUE, MOSTLY THE NUMBER ONE COMPLAINT THAT WE GET IS REGARDING OUR STREETS AND SIDEWALKS.
EVEN THOUGH WE HAVE INCREASED THE AMOUNT OF FUNDING OVER THE YEARS.
SO THANK YOU FOR THE PRESENTATION.
I THINK IT'S COUNCILWOMAN PELAEZ, IT SAYS HALL, BUT HE'S NOT THERE.
ROZI, I CAN TELL YOU, SPEAKING OF SIDEWALKS, SERIOUSLY LIKE EVERY CITY COUNCIL PERSON HAS AGREED WITH YOU TODAY.
I AGREE WITH COUNCILWOMAN GONZALES.
THERE NEVER SEEMS TO BE ENOUGH SIDEWALKS.
IT'S ALWAYS THIS STRUGGLE TO CATCH UP WITH THE MAINTENANCE OF THE EXISTING NETWORK, BUILD OUT MORE OF A NETWORK, AND CLOSING THAT 1800 MILES OF GAP OR 1,900 MILES OF GAP, RIGHT? SO I'VE GOT A COUPLE OF CONCERNS.
ONE, I'LL TELL YOU, YOU KNOW, THE THING I LIKE ABOUT SIDEWALKS IS, I WAS READING SOMEWHERE A HOUSE WITH A SIDEWALK IN FRONT OF IT IS VALUED HIGHER THAN A HOUSE WITH NO SIDEWALK IN FRONT OF IT.
YOU ACTUALLY HAVE A HIGHER SALE VALUE.
AND THAT VALUE INCREASES DRAMATICALLY, IF YOU ALSO HAVE A TREE IN FRONT OF THE HOUSE.
AND I THINK THAT BRINGING IT DOWN TO THAT GRANULAR LEVEL FOR FOLKS AND SAYING, LOOK, IT'S NOT JUST A MATTER OF 4,000 MILES IN A NETWORK, BUT SIDEWALKS ARE REALLY IMPORTANT TO YOUR DAY-TO-DAY, AND IMPACTS THE MOST IMPORTANT INVESTMENT THAT YOU MAKE, RIGHT, WHICH IS YOUR HOME.
I'LL REMIND YOU ALSO THAT I THINK THERE'S A STORY TO TELL, AND COUNCILWOMAN ARE TREVINO DO IT VERY WELL, SIDEWALKS ARE WHERE YOUR KIDS LEARN HOW TO RIDE THEIR BIKES.
MY WIFE AND I HOLD HANDS EVERY SINGLE NIGHT AND WE TALK A WALK ON PART OF OUR SIDEWALKS, IT'S ONE OF THE BEST PART OF MY DAYS.
[02:40:03]
I THINK THAT WE NEED TO PRESS THE -- ON THE GAS TO MAKE SURE THAT WE INCREASE THE AMOUNT OF SIDEWALK BUILDOUT THAT WE DO, AND WHAT MAKES ME REALLY WORRIED, AND I SAID THIS TODAY AT IGR, IS THAT THE COST OF SIDEWALKS FLUCTUATE DEPENDING ON THE COST OF COMMODITIES.I DON'T KNOW WHAT I NEED TO KNOW, RIGHT? WHAT ARE THE TALK OF TARIFFS AND ALL THIS, YOU KNOW, THINGS LIKE THAT, HOW IS THAT IMPACTING THE COST OF REBAR, RIGHT? AND WHAT DOES A SIDEWALK COST WHEN WE BREAK DOWN THE ACTUAL RAW MATERIAL USED.
AND IS THERE A WAY FOR US TO INSERT STABILITY INTO THAT, YOU KNOW, INTO THAT COST GOING FORWARD.
I KNOW YOUR PREDECESSOR MIKE FRISBEE CAME TO ME AND SAID, WELL, THAT'S NOT JUST THE WAY WE DO IT.
BUT THERE'S A WAY TO START DOING THINGS DIFFERENTLY, RIGHT? AND SOMETIMES IT'S JUST A MATTER OF DOING IT DIFFERENTLY.
SO I WOULD LIKE TO SIT DOWN WITH YOU AND ERIK AND EXPLORE WHAT OPTIONS ARE AVAILABLE TO US TO INCLUDING MAYBE HEDGE BUYING SOME OF THE RAW MATERIALS.
THE SECOND THING I WANT TO TALK TO YOU ABOUT IS, BICYCLE MASTER PLAN FROM 2011, IT'S EIGHT YEARS HAVE PASSED, AND HOW MANY MILES HAVE INCREASED OF BICYCLE FACILITY SINCE THAT TIME? I MEAN, IN OTHER WORDS, HAS IT ACTUALLY WORKED? OR ARE WE JUST SPENDING A LOT OF TIME TALKING ABOUT BICYCLES?
>> COUNCILMAN, 2011 IT LAID OUT ABOUT A 1,700 MILE NETWORK AROUND THE TIME WE HAD ABOUT 100 MILES OF EXISTING FACILITIES IN PLACE.
TODAY WE HAVE ABOUT 275 MILES OF A NETWORK.
AND THAT CONSISTS OF VARYING FUNCTIONS, LANE FACILITIES, ET CETERA.
>> PELAEZ: SO WE'VE ADDED -- BROADCAST ].
>> IF YOU LOOK AT THE NETWORK, IT'S FRAGMENTED.
ESSENTIALLY WE'VE IMPLEMENTED THE LOW HANGING FRUIT.
THE NEXT UPDATE IS TO UPDATE THE MASTER PLAN AND TARGET THOSE AREAS.
>> PELAEZ: SO AT A PACE OF 100 MILES FOR EVERY EIGHT YEARS, WHEN ARE WE GOING TO REACH THAT GOAL?
>> THE KEY THING ABOUT THE MASTER PLAN IS 1,700 MILES IS A PRETTY SIGNIFICANT NUMBER, RIGHT? THAT MAY NOT REALLY BE THE NEED NOW.
WE REALLY WANT TO DEFINE THOSE CORRIDORS, WHERE THE CORRECT CONNECTIONS ARE, AND DIVE INTO THOSE AREAS.
>> PELAEZ: BUT LIKE IN EIGHT YEARS, WE HAVEN'T IDENTIFIED THEM?
>> WE'RE FOLLOWING THE VISION OF THE MASTER PLAN.
IT'S REALLY JUST A LINE ON A MAP.
IT'S NOT -- IT'S A VERY HIGH-LEVEL DOCUMENT.
WHAT WE WANT TO GO FORWARD NOW AND DO DATA ANALYSIS IS COME UP WITH DETAILED SCHEMATICS TO HELP SET UP OUR ANNUAL BIKE PROGRAM AND --
YOU'RE GIVING ME THE ONLY ANSWERS YOU CAN, AND THAT'S ALL RIGHT.
BUT I HAVE TO GO BACK TO MY CONSTITUENTS AND SAY, HEY, MAN, IF YOU'VE ONLY ADDED 100 MILES, AND I SAY, LOOK, IT'S A HIGH LEVEL DOCUMENT AND THERE'S A MAP, AND, YEAH, 100 MILES IS ALL WE'VE GOT, IT'S A FAIR QUESTION, RIGHT? IT'S LIKE, WHEN DO YOU INTEND TO HIT YOUR GOALS? I CAN'T GIVE THEM THE ANSWER YOU JUST GAVE ME, ART.
I'LL GET BOOED OUT OF THE ROOM.
>> YOU MAKE IT SOUND A LOT BETTER.
>> PELAEZ: SO I REALLY NEED HELP, ERIK, ON SORT OF ADDING SOME HONEST ANSWERS TO THESE FOLKS.
WHO QUITE HONESTLY DON'T CARE HOW HIGH LEVEL THE DOCUMENT IS.
>> WE CAN SAY WE DOUBLED OUR NETWORK.
>> PELAEZ: THAT WOULD BE HONEST, WITH A LOWER CASE "H." I ALSO WANT TO MAKE SURE WE GO ON RECORD OF MENTIONING DISTRICT 8 MAY NOT BE THE MOST SUSTAINABLE ONE, BUT OF ALL THE DISTRICTS WE HAVE THE MOST POLITE CHILDREN.
>> I SEE MY MISTAKEN TIME TO COUNCILMAN TREVINO.
FIRST I WANT TO SAY, I THINK YOU'RE DOING A GREAT JOB, ROZI, AS INTERIM.
I'VE REALLY ENJOYED WORKING WITH YOU.
[02:45:02]
WORK, AND I KNOW YOU CARE VERY MUCH ABOUT THE DEPARTMENT AND HAVE BEEN VERY, VERY RESPONSIVE TO ALL THE QUESTIONS AND NEEDS AND PROGRAMS THAT WE'VE TACKLED.SO WE WERE JUST TALKING ABOUT SIDEWALKS, AND I WANT TO POINT OUT A COUPLE THINGS.
YOU KNOW, COUNCILMAN PELAEZ TALKED ABOUT HEDGE BUYING, WHICH IS EXACTLY WHAT WE EXPLORED WITH PRECAST CONCRETE SIDEWALKS WHICH CAN BE MASS PRODUCED AND STOCKED AS NEEDED.
OF COURSE, THAT'S NOT THE ONLY KIND OF SIDEWALK WE WANT TO USE IN OUR CITY.
ONLY IN AREAS WHERE WE KNOW THE SOILS ARE REALLY BAD.
BUT THIS IS WHERE SIDEWALKS ARE BOTH SOLVABLE.
YOU KNOW, I WANT MY COUNCIL COLLEAGUES TO KNOW WE HAVE AN AUDIT THAT ACTUALLY DOES BREAK THIS DOWN.
AND THAT AUDIT IS SOMETHING THAT I THINK IS -- HAS BEEN VERY USEFUL, IN HELPING TO COMMUNICATE EXACTLY WHERE THE COSTS ARE GOING.
A BASIC SIDEWALK, MARKET RATE, IS ABOUT $4 TO $5 A SQUARE FOOT.
ACCORDING TO THE AUDIT, WE'RE KIND OF LANDING THERE.
SO THAT'S ACTUALLY ABOUT RIGHT.
THE ISSUES ARE ALL THE EXTRA THINGS THAT WE'RE DOING THAT WE CAN ACTUALLY ADJUST, WHICH IS WHY I'VE CALLED FOR SOME DESIGN STANDARDS, AND SOME MASTER PLAN, AND I WANT TO THANK ERIK WALSH WHO ACTUALLY DID A SITE VISIT WITH ME AND WE LOOKED AT EXACTLY WHAT WE'RE BUILDING.
AND IF YOU LOOK AT THAT PICTURE, THERE'S A GOOD EXAMPLE ON THE LEFT IS ONE SIDEWALK, ON THE LEFT IS ANOTHER.
BUILDING JUST A SIDEWALK, YOU CAN SEE THERE'S A BIG DIFFERENCE IN COST.
AND WHEN YOU SLAM IT UP AGAINST THE CURB, YOU'RE REBUILDING THE CURB, TOO.
YOU HAVE TO DO SOME ASPHALT WORK.
YOU HAVE TO REDO AN ENTIRE DRIVEWAY, EVEN IF IT'S JUST FINE.
BY THE WAY, THE QUESTION ABOUT WHY ARE WE PUTTING POWER POLES IN THE MIDDLE OF OUR SIDEWALKS, WELL, THE POWER POLES WERE THERE.
WE'RE PUTTING SIDEWALKS WHERE POWER POLES EXIST.
AND WE CAN MAKE A DECISION TO REMOVE THE SIDEWALK FROM THOSE AREAS, SO THAT THEY DO NOT CREATE AN ISSUE.
ESPECIALLY WHEN IT COMES TO HANDICAPPED ACCESSIBILITY, OR COUNCILMAN PELAEZ WALKING WITH HIS WIFE HOLDING HANDS.
THAT IS AN IMPORTANT THING TO NOTE WHEN IT COMES TO HOW WE CAN ACTUALLY BUILD MORE SIDEWALKS.
AND AT THE HEART OF THIS IS, UNDERSTANDING, AS WAS ALSO STATED JUST BEFORE, WHICH REALLY CRITICAL TO POINT OUT.
WE HAVE A CERTAIN AMOUNT OF DOLLARS WE CAN SPEND.
AND IT'S LIKE WHEN MY MOTHER GAVE ME A DOLLAR AND SAID, GO BUY WHATEVER YOU WANT AT THE CORNER STORE.
BUT I WAS LIMITED TO THAT DOLLAR AND THERE I WAS TRYING TO PICK SOMETHING.
AND THAT'S WHAT WE NEED TO DO WITH SIDEWALKS.
WE NEED TO BE THOUGHTFUL ABOUT HOW WE SPEND OUR DOLLARS, MAXIMIZE AND BUILD CLOSER TO THE $48 PER LINEAR FOOT VERSUS $85.
AND SO ON TOP OF THAT, THIS IS NEW SIDEWALK.
WE ALSO KNOW IN A LOT OF OUR DISTRICTS, THERE'S EXISTING SIDEWALK.
AND WE DISCOUNT IT BECAUSE WE'VE ALSO LIMITED OURSELVES WITH OUR OWN POLICY THAT'S UDC 2911.
AND I THINK I HEARD COUNCILMAN SALDANA SAY ONCE, I HATE TELLING CONSTITUENTS, UDC 2911, IT'S YOUR RESPONSIBLE, YADA, YADA, YADA.
AND WE'VE GOT TO GET RID OF THAT.
AND IT'S NOT MEANT TO BE APPLIED TO CONSTRUCTION PROJECTS.
IT'S MEANT TO BE ABOUT MAINTENANCE OR CLEANUP.
AND IT'S LIKE OUR ALLEYS, WE DON'T EXPECT PEOPLE TO REBUILD AN ALLEY, WE EXPECT THEM TO JUST KEEP IT CLEAR OF DEBRIS.
AND SO THE KEY TO SIDEWALKS IS THAT THEY'RE CONNECTED.
THE KEY TO SIDEWALKS IS THEY'RE PART OF A BIGGER NETWORK.
AND RIGHT NOW, WE'RE ALSO DOING A SIDEWALK REPAIR PROGRAM.
AND AGAIN, I WANT TO THANK WITH THIS.
WE THINK THIS IS A SUCCESSFUL PROGRAM.
I REALLY WANT YOU TO TALK A LOT ABOUT THIS, BECAUSE I THINK THIS IS SOMETHING WE SHOULD ADOPT CITYWIDE.
WE CAN REPAIR UP TO 70% OF THE BLOCK FACE THAT BRINGS BACK THE ENTIRE BLOCK.
AND THAT IS A HUGE COST SAVINGS THAT BRINGS BACK MILES AND MILES
[02:50:02]
OF SIDEWALKS.SO THIS SHOULDN'T BE ABOUT JUST THE GAPS, IT SHOULD BE ABOUT EXISTING SIDEWALKS THAT REMAIN BROKEN, AND HAVE BEEN BROKEN FOR 10, 20 YEARS.
AND PEOPLE SAY, I CAN'T EVEN REMEMBER THE LAST TIME I HAD A SIDEWALK I CAN ACTUALLY WALK ON.
RIGHT NOW, WE'RE FIXING BASICALLY THE SIDEWALKS IN THE ENTIRE NEIGHBORHOOD OF TONEN HILL THROUGH THAT METHODOLOGY.
WE DID IT, BY THE WAY WE IMPLEMENT THE NEW SIDEWALKS IN OUR OTHER PROJECTS.
SO IT'S GOING TO TAKE BETTER DESIGN STANDARDS, UNDERSTANDING THAT THIS REPAIR PROGRAM DOES LIMIT -- OR DOES RELY ON US GETTING RID OF UDC 2911, OR AT LEAST INTERPRETING IT MUCH DIFFERENTLY THAN WE'RE DOING NOW.
AND IF WE DID THAT, WE WOULDN'T HAVE THIS PCI SCORE.
YOU KNOW, EVERY NEIGHBORHOOD WOULD BE PATCHED WITH BAD STREETS EVERYWHERE.
BUT WHAT WE DO HAVE IS A VERY PROACTIVE POTHOLE PATROL.
THEY SEE A POTHOLE, THEY FIX IT.
WELL, WE NEED TO DO THAT WITH SIDEWALKS.
YOU SEE A BAD SIDEWALK, FIX IT.
AND SO WE TALKED ABOUT HOW LONG IS THIS GOING TO TAKE.
WELL, RIGHT NOW WE DO ABOUT 40 MILES OF SIDEWALK A YEAR.
THAT'S WHAT WE ALWAYS DO, ON AVERAGE.
WE SHOULD BE DOING 200 MILES A YEAR.
AND IF YOU LOOKED AT THE GAP AND YOU LOOK AT HOW MUCH WE'RE REPAIRING, THAT MEANS THAT WE CAN HAVE A GOAL EVERY YEAR WHEN WE'RE SITTING HERE TALKING ABOUT OUR BUDGET, REVIEWING THIS, WE CAN ACTUALLY TELL OUR CONSTITUENTS, WE'RE 10% OF THE WAY THERE.
WE'RE MEASURING IT EVERY YEAR.
THAT'S WHAT THEY WANT FROM US, THEY WANT A REAL PLAN, THEY WANT US TO EXECUTE ON IT, AND THEY WANT GOOD PEOPLE LIKE ROZI TO BE ALLOWED TO JUST GET THE WORK DONE, UNSHACKLE HIM FROM WHATEVER CRAZY POLICY WE'RE CREATING THAT DOESN'T ALLOW HIM TO SIMPLY BUILD THAT AUDIO].
SO ROZI, SETTING YOU UP FOR COMMENTS ON THE REPAIR PROGRAM, AND TELL US ABOUT THE NEW PMO.
>> FIRST OF ALL, COUNCILMAN, LET ME TALK ABOUT THE SIDEWALK.
WE ARE DOING SIGNIFICANT [INDISCERNIBLE].
HISTORICALLY WE HAVE BUILT SIDEWALKS AGAINST THE CURB BECAUSE THAT'S AN EASY WAY TO DO IT, AND BUILD A 6-INCH OR 9-INCH RETAINING WALL.
IF THERE IS A NEED, AND GREAT CHANGE, WE ARE TALKING WITH, FIRST OF ALL, IF THERE'S ENOUGH TO DO IT ON THERE, AND IF NOT WE'RE GOING TO THE PROPERTY OWNER, IF THEY ALLOW US TO ELIMINATE THAT COST, AND THE TIME IT TAKES TO BUILD THAT RETAINING WALL.
WE ALWAYS USED TO FOLLOW JUST A CURB LINE, NOW WE ARE MANDATING TO AVOID THE POWER POLE, FIRE HYDRANT AND RETAINING WALL.
WE ARE DOING MORE OF THOSE $48 THAN THE $54, THAT'S THE GOOD NEWS.
ON REPAIR PROGRAM, WE ARE -- WE TALKED WITH YOU EARLIER [INDISCERNIBLE], THE IDEA WE USED TO HAVE, WE ARE GOING TO BUILD GAP.
WHEN THERE'S A SIDEWALK IN AUDIO] EVEN THERE'S A PHYSICAL SIDEWALK, BUT FUNCTIONALLY THERE IS GAP.
THAT ALSO FALLS WITHIN THE GAP.
WORKING WITH YOU, WE DECIDED MAYBE 80/20.
IF 80% OF THE NEIGHBORHOOD HAD A GOOD SIDEWALK, WHY NOT WE SPEND MONEY AND TIME, FIX THAT 20%, THEN WE MAKE THE NEIGHBORHOOD 100% ACCESSIBLE.
AND WE ARE DOING ONE OF THOSE YOUR DISTRICT.
AND AS YOU KNOW, WE HAVE HIRED THE PMO, AND WE MET WITH HIM LAST WEEK, HE'S VERY EXCITED, VERY ENERGETIC.
DIFFERENT DIVISION HAS DIFFERENT FUNDING SOURCE [INDISCERNIBLE].
ALSO, HE'S REALLY LOOKING HOW WE CAN BUILD A SIDEWALK WITH LESS COST.
>> IT'S A REAL CULTURE SHIFT, AND HAVING SOMEBODY LIKE A MOBILITY OFFICER WHO LOOKS AT WAYS TO MOVE PEOPLE AROUND, AND THIS IS SOMEBODY THAT'S GOING TO BE LOOKING AT BIKE LANES, SIDEWALKS, IT'S SO IMPORTANT.
AND I THINK ALL OF US ON COUNCIL SHOULD SEE THIS PERSON AS A RESOURCE, INVITE HIM OUT TO OUR NEIGHBORHOOD ASSOCIATION MEETINGS.
REALLY GIVE THEM THE OPPORTUNITY TO GET TO KNOW THE CITY, GET TO KNOW WHAT THE CONCERNS ARE, AND WHERE THE PRESSURES ARE, SO HE WILL BECOME THE -- HE IS THE POINT OF CONTACT WHEN IT COMES TO THESE KIND OF GOALS.
[02:55:02]
IS THAT CORRECT?>> WELL, AGAIN, THANK YOU, AND I LOOK FORWARD TO A VERY SUCCESSFUL IMPLEMENTATION OF OUR SIDEWALK DOLLARS GOING INTO BOTH THE GAPS AND REPAIR PROGRAMS. I THINK PEOPLE ARE VERY EXCITED.
I'VE JUST RECENTLY VISITED THE TOEBEN HILL NEIGHBORHOOD.
THE FIRST THING THEY KEEP SAYING ALMOST UNANIMOUSLY IS, IT'S ABOUT TIME.
>> MAYOR NIRENBERG: THANK YOU, COUNCILMAN TREVINO.
WHEN DID WE GET THE PCI SCORES UPDATED? WHEN WERE THEY UPDATED?
>> PCI, WE'LL HAVE TO UPDATE PCI END OF THIS YEAR.
>> PERRY: SO THESE SCORES AREN'T NECESSARILY ACCURATE?
>> THEY'RE PROJECTED PRETTY CLOSE.
>> PERRY: SO YOU'RE THINKING THEY'RE GOING TO BE CLOSE.
THERE STILL MIGHT BE SOME VARIANCES OUT THERE?
AND HOW OFTEN DO YOU ALL DO THAT?
>> PERRY: ONCE EVERY TWO YEARS.
>> PERRY: THREE YEARS? ALL RIGHT.
SO JUST TO LET FOLKS KNOW, THOSE AE PRELIMINARY PCI SCORES, NOT FINAL PCI SCORES FOR ALL THE DISTRICTS.
THEN I'M GLAD TO SEE US OVER THE LAST COUPLE YEARS INCREASE THE BUDGET FOR STREETS.
THAT, AGAIN, THE THREE MAIN TOPICS DURING MY LAST TWO ELECTIONS WAS INFRASTRUCTURE, WHICH STREETS ARE A PART OF.
AND I THINK WE'RE ANSWERING THAT CALL.
TAXES, AND SAFETY AND SECURITY, WE'VE WORKED ON SAFETY AND SECURITY, NOW IF WE CAN GET THE THIRD LEG TO THE STOOL, I THINK THAT WILL GO A LONG WAY TOWARD OUR RESIDENTS HERE IN SAN ANTONIO.
SO I JUST WANTED TO SAY, WE'RE HEADING IN THE RIGHT DIRECTION FOR THIS.
ALTHOUGH, YOU KNOW, WE'RE STILL PROJECTED TO GET THIS MILLION-PLUS PEOPLE OVER THE NEXT 20 YEARS, YOU KNOW, THAT PAYS A PRICE -- OR WE PAY A PRICE FOR THAT EXPANSION, NOT FOR THE NEW STREETS THAT MIGHT GO IN AS PART OF THAT EXPANSION, BUT THE WEAR AND TEAR ON OUR EXISTING STREETS, OF THE TRAFFIC, THE CONSTRUCTION, HEAVY CONSTRUCTION VEHICLES GOING ACROSS OUR EXISTING STREETS.
SO, YOU KNOW, IT'S LIKE TAKING A STEP FORWARD AND TWO STEPS BACK, YOU KNOW, WITH WHAT'S HAPPENING TO OUR STREETS.
I'M SEEING THAT IN MY DISTRICT RIGHT NOW.
BRAND-NEW STREETS THAT HAVE BEEN LAID, THE CONSTRUCTION TRAFFIC THAT'S HAPPENING ON NEW DEVELOPMENTS ARE GOING RIGHT BEHIND IT AND TEARING THEM RIGHT BACK UP AGAIN.
SO JUST SOMETHING TO KEEP IN MIND IN HOW MUCH WE ARE FUNDING TO THIS, AND IN THE AREAS THAT ARE GROWING, AND WHAT HAPPENS TO THOSE STREETS DURING THAT DEVELOPMENT PROCESS.
SO ANYWAY, THANK YOU VERY MUCH.
>> MAYOR NIRENBERG: THANK YOU, COUNCILMAN PERRY.
I WANT TO EMPATHIZE WITH COUNCILMAN GONZALES ABOUT SIDEWALKS.
I'VE HAD MORE WABATTLES ABOUT SIDEWALKS IN MY DISTRICT MORE THAN ANYTHING ELSE.
SO I EMPATHIZE WITH YOU ON THAT.
I'M CONCERNED, I THINK, LIKE ALL OF US ARE, ABOUT BIKE LANES.
I WOULD SURE LIKE TO KNOW WHAT THE MASTER PLAN IS FOR BIKE LANES IN 2011 FOR DISTRICT 9.
ART, IF YOU COULD SEND THAT TO ME, I WOULD SURE LIKE TO SEE THAT.
ONE OF THE ISSUES THAT I HAVE, AND I DON'T KNOW IF OTHER PEOPLE IN SEVERAL OF THE DISTRICTS HAVE THIS, AND IT'S THE CONNECTIVITY OF ALL THE STREETS WITHIN THE DISTRICTS.
I KNOW A LOT OF THE INNER CITY WAS BUILT MANY, MANY YEARS AGO, AND A LOT OF THOSE STREETS RUN TRUE.
THEY'RE WITHIN PATTERNS, THINGS LIKE THAT.
BUT I KNOW OUTSIDE OF 410, AS THOSE DISTRICTS GOT DEVELOPED, AND CERTAINLY OUTSIDE OF 1604, WHICH ENCOMPASSES A LOT OF MY AREA IN THE NORTHCENTRAL PART OF TOWN, THERE ARE STREETS, THAT PARTS OF THEM WERE BUMILT, BUT THEY WEREN'T COMPLETED.
THEY MADE A DEAL WITH THE DEVELOPER.
THE DEVELOPER WILL BUILD THE PART OF THE STREET IN FRONT OF THEIR BUILDING OR THEIR PROJECT, AND HOPEFULLY THE DEVELOPER DOWN THE LINE WOULD BUILD THE REST, AND BUILD THE REST.
BUT THERE'S TOO MUCH LACK OF CONNECTIVITY BETWEEN SOME OF THE MAIN STREETS IN OUR DISTRICTS.
[03:00:01]
PRIORITIZE THIS 55 MILLION FOR MAINTENANCE, SO TO SPEAK, AND 55 MILLION TO HIT SOME OF THE GREATER CONCERNS THAT NEED TO BE WORKED ON, WHETHER THE STREET'S IN REALLY BAD SHAPE, I HOPE IT ALSO, YOU KNOW, CONSIDERS STREETS THAT AREN'T CONNECTED, THAT NEED TO BE CONNECTED, TO MOVE THE PEOPLE AROUND IN OUR DISTRICTS.AND I KNOW RIGHT NOW, THERE'S ABOUT FIVE DIFFERENT STREETS THAT I THINK NEED TO BE CONNECTED IN MY DISTRICT.
BUT I DON'T KNOW HOW THAT MAY BE IN SOME OF THE OTHER DISTRICTS.
I THINK THAT SHOULD BE SOMETHING THAT SHOULD BE A PRIORITY, CONNECTING ALL OF THESE STREETS FOR THE MOVEMENT OF TRAFFIC, AND LACK OF CONGESTION.
SO I JUST WANTED TO BRING THAT UP.
>> MAYOR NIRENBERG: THANK YOU, COUNCILMAN COURAGE.
QUICKLY, TO SOME OF YOUR THINGS THAT YOU'RE PUTTING FORWARD WITH THE TWO DIFFERENT STRATEGIES NOW, LOOKING AT THE TWO-YEAR STREET IMPROVEMENT STRATEGY.
YOU MENTIONED IN YOUR STATEMENT THAT THE COMPLETION OF THE 2019 PROGRAM, BUT THAT DOESN'T MEAN THAT THEY'RE ALL GOING -- SO ARE THEY ALL GOING TO BE DONE IN 2019?
>> NO COMPLEXITY OF THE PROJECT.
AND THEN I'M VERY PROUD AND GRATEFUL FOR THE WORK THAT'S BEEN DONE OVER THESE TWO YEARS WITH OUR EQUITY BUDGET AND GETTING THE PCI SCORE AT OR ABOVE 70.
BUT TO YOUR POINT, OR TO THE POINT THAT WAS MADE, WE ONLY HAVE -- THE PCI SCORE OF DISTRICT 2 IS ONLY 70.
DISTRICT 3 IS STILL THE AVERAGE PCI IS STILL 71.
SO WE STILL HAVE A LOT OF WORK TO DO.
AND SO I AM -- I'M LOOKING FORWARD TO SEEING WHAT THIS -- THE NUMBER -- THE NETWORK SIZE, AND THE PCI SCORE STILL IS WITHIN THE DISTRICT.
I'M VERY PROUD OF WHAT WE'VE ALL BEEN ABLE TO ACCOMPLISH TOGETHER TO SEE THESE LONG, LONG OVERDUE STREETS GETTING FIXED.
TO THE SIDEWALKS, I HAVE TO CONCUR WITH WHAT MY COUNCIL COLLEAGUE WAS SAYING, COUNCILMAN GONZALES WITH THE SUSTAINABILITY.
BECAUSE I BELIEVE WHAT'S HAPPENED WITH OUR EQUITY LENS APPROACH, WHEN IT COMES TO SIDEWALKS, IT'S KIND OF BLIND BIASED, BECAUSE OF OUR OLDER NEIGHBORHOODS, BECAUSE SOME NEIGHBORHOODS WERE BUILT WITHOUT SIDEWALKS.
AND BECAUSE MANY OF OUR NEIGHBORHOODS DON'T HAVE ADA ACCESSIBLE SIDEWALKS RIGHT NOW.
SO I WOULD CONSTITUTE THAT AS STILL GAPS AS WELL.
GAPS IN SIDEWALKS, IN DISTRICT 3, THAT, ONE, THEY DON'T EXIST, THAT, TWO, THAT THEY'RE STILL TOO NARROW, AND THAT I WANT TO MAKE SURE GETTING THE SHORT END OF THE STICK OR BEING BLIND WITH OUR SIDEWALKS IN OUR OLDER NEIGHBORHOODS, IN OUR COMMUNITY.
SO I KNOW I VOICED TO YOU ALL MY CONCERN WHEN WE DID A NEW, WHAT WAS IT CALLED, POINTING SYSTEM BECAUSE OF THE MEDICAL -- THE DOCTOR OFFICES AND WE DON'T HAVE AS MANY.
>> YES, THE SELECTION CRITERIA.
>> YES, BECAUSE WE DON'T HAVE AS MANY AS OTHER PARTS OF THE COMMUNITY.
I'LL CONTINUE TO RAISE THAT CONCERN AS WE MOVE FORWARD.
AND THE SOIZ OF THE DISTRICT, I KNOW WE HAVE A LOT OF RURAL AREA IN DISTRICT 3 STILL THAT IS -- DOESN'T HAVE HOUSES, BUT WE KNOW THAT'S COMING FORWARD BUT WE KNOW THE DEVELOPERS WILL COME FORWARD AND PUT THAT CONNECTION.
SO THAT'S ONE OF MY CONCERNS WITH THE SIDEWALK PROGRAM.
AND YES, THAT'S WHY I DID PUT $9 MILLION IN THE BOND FOR OUR SIDEWALKS.
AND THAT'S WHY WE'RE GOING TO INVEST THOSE DOLLARS IN THE BOND PROGRAM.
BUT I NEED TO MAKE SURE WHEN WE'RE TALKING ABOUT THE SIDEWALKS -- YOU MENTIONED, COUNCILWOMAN GONZALES MENTIONED ABOUT THE NARROW STREETS AND HAVING TO TAKE OVER MORE OF THE PROPERTY FROM THE PROPERTY OWNERS BECAUSE OF THE NARROW STREETS AND WANTING TO HAVE THESE SIDEWALKS.
YOU MENTIONED CPS ENERGY DOESN'T HAVE THE POLES, THAT THE POLES ARE NOT IN THE MIDDLE OF THE SIDEWALKS ANYMORE, WE'RE NOT DOING THAT ANYMORE, THANK GOODNESS BECAUSE WE LEARNED FROM THAT MISTAKE.
WHERE THE STREETS ARE TOO NARROW, WE NEED THOSE SIDEWALKS, IT WOULD BE GREAT IF THEY COULD JUST PUT THOSE LINES UNDERGROUND IN ALL OF THOSE OLDER NEIGHBORHOODS.
I'M JUST GOING TO THROW THAT OUT THERE RIGHT NOW.
I WOULD SAY, COUNCILWOMAN, ESPECIALLY ON ROOSEVELT AVENUE
[03:05:02]
AND THAT NARROW STRETCH -- SAYING THOSE THINGS.I'M LOOKING FORWARD TO SEEING WHAT YOU ALL HAVE MORE INFORMATION ABOUT THIS $50,000 FOR CONNECT SA, AND WHO WOULD BE IN CHARGE OF THIS $50,000 FOR CONNECT SA, IF IT MOVES FORWARD, AND WE DO SEE MOVING THAT FORWARD, WHO WOULD BE IN CHARGE OF THIS $50,000, AND THE 10,000 SURVEYS AND THE MATERIALS, THE MARKETING MATERIALS, WOULD IT BE OUR CITY DEPARTMENT? OUR PUBLIC AFFAIRS DEPARTMENT THAT WOULD BE OVERLOOKING THE $50,000?
>> I THINK WE NEED TO GATHER UP AND DO A BROADER UPDATE IN AUDIO] $50,000 CONNECT SA ISSUE.
I THINK IT'S A LARGER POLICY CONVERSATION FOR THE ENTIRE COUNCIL.
THAT'S JUST AN ELEMENT THAT WE WANTED TO MAKE YOU AWARE OF.
>> VIAGRAN: THANK YOU FOR THAT CLARIFICATION.
BECAUSE ON THAT CONNECT SA, AS YOU'RE HAVING A LARGER POLICY DISCUSSION, I WOULD ALSO LIKE TO KNOW HOW MUCH -- IF WE'RE GOING TO BE EXPECTED TO PUT IN $50,000, I WOULD LIKE TO SEE HOW MUCH THE COUNTY IS GOING TO BE PUTTING IN AS WELL AS THE PRIVATE SECTOR.
BUT THANK YOU VERY MUCH, MAYOR.
>> MAYOR NIRENBERG: THANK YOU, COUNCILWOMAN VIAGRAN.
I THINK THAT'S IT FOR THIS PRESENTATION.
WE DO THANK YOU, EVERYONE, FOR BEING PATIENT AS WE WORK THROUGH THESE ITEMS AND GET READY FOR NEXT WEEK.
WE DO HAVE TWO OTHER PRESENTATIONS THAT WILL BE DELAYED UNTIL TOMORROW.
WE HAVE AN EXECUTIVE SESSION AT THIS TIME.
THE TIME IS 5:15 P.M. ON THIS 12TH DAY OF JUNE, 2019.
TEXAS OPEN MEETINGS ACT, THE CITY COUNCIL RECESS INTO EXECUTIVE SESSION TO DISCUSS ECONOMIC DEVELOPMENT NEGOTIATIONS PURSUANT TO TEXAS GOVERNMENT CODE 551.OH.87, LEASE OR VALUE OF REAL PROPERTY ACCORDING TO 551.072, REAL PROPERTY, LEGAL ISSUES PUSHT TO SECTION 55.1.
AND LAWSUIT INVOLVING THE CITY OF AUSTIN PUR
* This transcript was compiled from uncorrected Closed Captioning.