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GOOD AFTERNOON.WELCOME TO THE CITY COUNCIL B SESSION OF JUNE 12TH, 2019.
COUNCIL MEMBER TRAVINO, COUNCIL MEMBER HALL.
COUNCIL MEMBER BROCK HOUSE COUNCIL MEMBER SANDOVAL.
COUNCIL MEMBER COURAGE PRESENT.
WELCOME EVERYONE TO OUR CITY COUNCIL B SESSION AGENDA.
THE TIME IS NOW 2:11 PM ON WEDNESDAY, JUNE 12TH.
UM, I DID WANT TO, BEFORE WE GET STARTED, UH, ACKNOWLEDGE THE, UH, MEMBERS OF COUNCIL WILL BE TAKING THEIR SEATS NEXT WEEK.
ROCHA HERE, UH, DISTRICT FOUR.
WE HAVE, WE HAVE, UH, JADA SULLIVAN HERE, DISTRICT TWO, AND I THINK SHE'S GETTING INTERVIEWED OUTSIDE.
AND I, AND I THINK THAT, UH, MELISSA HODRA IS OUTSIDE, SO SHE'LL BE JOINING US HERE, UH, SHORTLY.
AND THIS IS, UH, TODAY WE HAVE ONE ITEM ON THE AGENDA TODAY TO TALK ABOUT FINANCIAL POLICIES OF THE CITY.
UH, THIS IS AN ANTICIPATION OF OUR FY 2020 BUDGET CYCLE, WHICH WILL INCLUDE OUR BUDGET GOAL SETTING SESSION ON THE 21ST, WHICH WILL ALSO INCLUDE, UH, SOME TEAM BUILDING FOR THE NEW COUNCIL.
SO, UM, ALL THAT DETAIL WILL BE RELEASED HERE VERY SOON.
UH, BUT WE ANTICIPATE A, A GOOD COUPLE OF SESSIONS HERE TODAY AND TOMORROW, AND THEN INTO THE 21ST.
SO I'LL TURN IT OVER NOW TO OUR, UM, CITY MANAGER, ERIC WALSH.
GOOD AFTERNOON, MAYOR AND COUNCIL.
SO WE'RE GONNA DO THINGS A LITTLE BIT DIFFERENTLY.
UM, UH, MANY OF YOU HAVE GONE THROUGH THE ANNUAL, UH, UH, COUNCIL WORK SESSION FOR BUDGET.
AND, AND, UM, FROM MY PERSPECTIVE OVER TIME, UM, THOSE ONE DAY SESSIONS HAVE TURNED INTO VERY LONG DAYS OF POWERPOINT PRESENTATIONS AND, UM, UH, IN CONTEMPLATING HOW WE CAN, UH, ALLOW A LITTLE BIT MORE TIME AND THOUGHT, UH, TO HELP, UH, THE COUNCIL PREPARE FOR THE JUNE 21ST WORK SESSION.
UH, THE IDEA IS THAT TODAY, IN ADDITION TO THE FINANCIAL POLICIES THAT THE MAYOR, UH, MENTIONED, UM, THAT WE START TO COVER HIGH LEVEL SOME OF THE LARGER BUDGET POLICY ISSUES.
UM, WE'LL DO SOME THIS AFTERNOON, AND THEN TOMORROW AFTERNOON AFTER NORMAL BUSINESS AT ONE O'CLOCK, WE'LL RECONVENE AND CONTINUE, UM, THE AREAS THAT WE'LL COVER, UH, TODAY.
UH, AND TOMORROW WE'LL COVER WILL, WILL INCLUDE PROPERTY TAX RELIEF, ADDITIONAL FINANCIAL POLICIES, POLICE, FIRE INFRASTRUCTURE, UH, WE HAVE, UH, DOMESTIC VIOLENCE AND TRAUMA-INFORMED CARE HOUSING TOMORROW, EMPLOYEE COMPENSATION.
AND THEN, UH, JEFF COYLE WILL GIVE A, A BRIEF OVERVIEW OF THE SA SPEAK UP SURVEY TOMORROW, UM, WHICH WILL BE KIND OF A SNEAK PEEK INTO SOME OF THE KEY FINDINGS.
WE'LL GO INTO MUCH MORE DETAIL NEXT WEEK AT THE JUNE 21ST WORK SESSION.
SO, WE'LL, THERE, THERE'S, UH, A NUMBER OF TOPICS THAT WE'LL GO THROUGH TODAY.
AND THE IDEA IS TO SET THE TABLE FOR, FOR THE COUNCIL.
THERE MAY BE SOME THINGS THAT YOU DON'T SEE OVER THE NEXT TWO DAYS.
UM, THIS IS YOUR OPPORTUNITY TO, TO ADD SOMETHING SO THAT WE'RE ABLE TO BE PREPARED FOR THE 21ST.
THERE MAY BE SOME, UH, REQUESTS FOR INFORMATION THAT YOU HAVE, THAT YOU MAY HAVE.
UM, HAVING THIS CONVERSATION TODAY AND TOMORROW ALLOWS US A CHANCE TO GATHER THAT INFORMATION, GET IT BACK TO THE FULL MAYOR AND COUNCIL, UM, AND THEN YOU'RE PREPARED FOR JUNE 21ST.
SO, WE'VE TRIED TO STRETCH IT OUT A LITTLE BIT AND DO A LITTLE BIT MORE PREP WORK WITH THE COUNCIL.
AND, UM, AND THAT WAY ON THE 21ST, UH, WE WILL BE DESIGNING BOTH THE, THE WORK SESSION PART, BUT AS WELL AS THE, UH, THE TEAM BUILDING, UH, PORTION AT THE MAYOR, UH, MENTIONED AT THE BEGINNING.
SO, UM, TODAY'S, TODAY'S PRESENTATION WILL BE, UH, WE'LL START OFF WITH BEN, GO ON.
UH, THIS IS CRITICAL IN THE SENSE THAT, UM, EVERY CITY AND COUNTY, UH, IN TEXAS IS, UH, REVIEWING THOSE RIGHT NOW.
UM, BOTH FOOD, UM, MOODY'S AND FITCH RATING AGENCIES HAVE SENT OUT NOTICES, UM, TO THEIR BOND HOLDERS AND TO, UH, MUNICIPALITIES AND COUNTIES THAT GIVEN, UH, THE RECENT CHANGE WITH SSB TWO, THAT,
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UM, WE SHOULD CERTAINLY EXPECT TO BE QUESTIONED ON THIS AS WE, UH, ENGAGE WITH THE RATING AGENCIES GOING FORWARD.SO THAT'S PART OF THE TALK, THE DISCUSSION TODAY.
UM, SECONDLY, BEN WILL COVER PROPERTY TAX RELIEF AND THAT COMPONENT OF, OF A POTENTIAL BUDGET POLICY ISSUE.
UM, THERE'S ONE TAKEAWAY TODAY IS THAT IF WE GET SOME GENERAL DIRECTION, MOST OF YOU KNOW THAT THAT DECISION NEEDS TO BE MADE BY THE COUNCIL BEFORE JULY 1ST.
UM, AND WHAT I, DEPENDING ON THE CONVERSATION, WHAT WE WILL DO IS WE WILL PLACE AN ACTION ITEM ON THE JUNE 21ST WORK SESSION, WHICH GIVES US THE OPPORTUNITY, GIVES YOU THE, THE OPPORTUNITY TO TAKE SOME SORT OF FORMAL ACTION IN ADVANCE OF THE JULY 1ST.
UM, AFTER THOSE TWO, UH, SESSIONS, WE WILL BREAK FOR QUESTIONS, AND THEN WE'LL GO INTO POLICE, FIRE AND INFRASTRUCTURE.
AND THEN WE'VE GOT, UM, HOUSING, TRAUMA-INFORMED CARE, DOMESTIC VIOLENCE, EMPLOYEE COMPENSATION AND SURVEY TOMORROW AFTERNOON.
SO THAT'S KIND OF THE RUN OF SHOW FOR THE NEXT TWO DAYS.
AND, AND, UH, HOPEFULLY, UM, YOU, UH, IF YOU'VE GOT QUESTIONS, LET US KNOW.
WE WANNA MAKE SURE THAT YOU'RE PREPARED, CERTAINLY FOR NEXT WEEK.
UM, I THINK, UH, THE, THE LAST THING I'LL ADD IS THAT GIVEN THE CHANGES, UH, AT THE STATE LEVEL WITH SB TWO AND THE RIGHT OF WAY, UH, FEES THAT WE, UH, WILL SEE IMPACTING US BEGINNING SEPTEMBER 1ST, THE MESSAGE IS THAT ALL OF THIS IS MANAGEABLE.
IT'S MANAGEABLE THROUGH SETTING PRIORITIES, UH, SETTING, HAVING GOOD, SOLID FINANCIAL POLICIES, UH, SETTING EXPECTATIONS AND PRIORITIZING.
UM, BUT, UM, I'M NO DOUBT WE CAN MANAGE THROUGH THIS, BUT, BUT A LOT OF THAT RESTS ON HOW WE APPROACH IT AS A, UH, AS A STAFF AND, UH, THE, THE PRIORITIZATION OF THE COUNCIL.
SO WITH THAT, I'M GONNA START IT OFF WITH BEN.
GOOD AFTERNOON, MAYOR AND COUNCIL MEMBERS.
UM, AS ERIC SAID, I'LL COVER BOTH OUR FINANCIAL POLICIES AS WELL AS SOME DISCUSSION ON POTENTIAL PROPERTY TAX REFORM GOING INTO NEXT YEAR'S BUDGET.
WITH REGARD TO FINANCIAL POLICIES, AGAIN, WE'RE WANTING TO UPDATE THIS BECAUSE IN SOME RESPECTS, A LOT HAS CHANGED OVER THE PAST YEAR IN TERMS OF OUR FINANCIAL PARAMETERS.
AND WE WANNA TALK ABOUT HOW WE, MAYBE WE NEED TO ADJUST OUR FINANCIAL POLICIES AND WHAT WE DO AND HOW WE MANAGE THE ORGANIZATION.
AGAIN, THE FINANCIAL POLICIES, THINK ABOUT THEM IN TERMS OF VERY HIGH LEVEL POLICY GUIDANCE THAT WE USE TO MANAGE THE ORGANIZATION.
AND I'LL TALK ABOUT WHAT OUR POLICIES ARE TODAY, AND THEN AGAIN, WHAT THOSE RECOMMENDATIONS ARE.
THE PURPOSE OF FINANCIAL POLICIES, AGAIN, REALLY TO LOOK AT A COUPLE OF THINGS.
IT IS, WE WANNA MAINTAIN A STRONG FINANCIAL POSITION, AND THEN IF WE, IF WE'VE GOT THEM SET RIGHT, NONE OF US HAS A CRYSTAL BALL AND CAN TELL YOU EXACTLY WHAT'S GONNA HAPPEN ECONOMICALLY OVER THE NEXT FIVE OR 10 YEARS.
WE WANT TO HAVE POLICIES IN PLACE THAT ALLOW US TO ADAPT AND GIVE US SOME, GIVES US SOME FLEXIBILITY TO ADJUST AS THE ECONOMY'S DOING WELL, BUT ALSO WHEN THE ECONOMY'S NOT DOING WELL.
AND TO DO THAT SO THAT, UM, WE'RE NOT HAVING LARGE FLUCTUATIONS IN SERVICE LEVELS FROM YEAR TO YEAR.
WE WANNA 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.
I MEAN, I THINK IF YOU LOOK AT THE TESTS THAT WE WENT THROUGH WITH THE LAST BIG RECESSION, AND YOU COMPARE THAT TO OTHER BIG CITIES ACROSS THE COUNTRY, WE FARED VERY WELL.
THAT'S NOT TO SAY WE DIDN'T FEEL THE PAIN AND HAD TO MAKE ADJUSTMENTS AND, AND, AND DO THAT, BUT WE CERTAINLY WERE DOING IT TO THE LEVEL OF MANY CITIES OUT THERE.
SO I THINK OUR POLICIES REALLY WERE A PART OF THAT AND ALLOWED US TO CONTINUE TO BE ABLE TO ADJUST EVEN IN THOSE KIND OF ADVERSE CONDITIONS.
UM, POLICIES AND PRACTICES, THEY'VE GOTTA BE COHESIVE.
ALL OF 'EM HAVE TO FIT TOGETHER.
EVERYTHING WE'RE DOING ON THE CAPITAL PLANNING SIDE TO EVERYTHING WE'RE DOING ON THE OPERATING BUDGET SIDE, THEY'VE GOTTA FIT TOGETHER.
GOOD EXAMPLE OF THAT IS YOU WOULDN'T WANT TO HAVE REALLY, REALLY AGGRESSIVE REVENUE FORECASTS WITH A REALLY, REALLY LOW RESERVE TARGET.
THAT'S OBVIOUSLY NOT GONNA WORK.
UM, YOU'RE GONNA MISS THE REVENUE SIDE.
YOU DON'T HAVE RESERVES TO FALL BACK ON.
SO THEY'VE GOTTA ACTUALLY FIT TOGETHER FROM AN ASSUMPTION STANDPOINT.
AND THEN AT THE END OF THE DAY, ALL OF THAT DOES CONTRIBUTE TO OUR CREDIT PROFILE.
SO WE GO TO THE RATING AGENCIES.
THIS IS A CONTRIBUTING FACTOR TO THAT.
THEY LOOK AT OUR FINANCIAL POLICIES AND HOW WE MANAGE THE ORGANIZATION OVERALL.
UH, AND IT'S A BIG PIECE TO, 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 THAT ARE TIED DIRECTLY TO THE GENERAL FUND.
WE TALK ABOUT MANAGING A STRUCTURAL BALANCE.
ALL THAT MEANS IS WE WANNA MAKE SURE THAT ON AN ANNUAL BASIS, OUR, 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, OR EVENTUALLY THAT'S GONNA CAUSE AN ISSUE.
'CAUSE FUND BALANCE IS A ONE-TIME, UH, SOURCE VERSUS WE WANNA BE RELYING ON, ON ONGOING REVENUES.
UH, WE'VE PUT A TWO YEAR BUDGET PLAN IN PLACE AROUND AROUND 2007.
UM, THIS HAS WORKED REALLY WELL FOR US.
WE'RE ONLY LEGALLY ADOPTED TO ADOPT
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THE UPCOMING FISCAL YEAR'S BUDGET.WE HAVE SET UP, UH, IN PLACE IN ADDITION TO THE FIVE YEAR FORECAST, THIS TWO YEAR BUDGET PLAN, WE'RE ADOPTING THE COMING YEARS, FISCAL YEAR'S BUDGET, BUT ALSO 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.
WE WANNA BALANCE THAT OFF AS MUCH AS WE CAN.
UH, 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, TO CROWD OUT OTHER CORE SERVICES WITHIN THE GENERAL FUND.
AND THEN WE ALSO HAVE A TARGET HERE OF MAINTAINING A MINIMUM ENDING, UH, BALANCE IN THE GENERAL FUND OF 15%.
UM, OBVIOUSLY WE SET MODERATELY CONSERVATIVE REVENUE PROJECTIONS.
SO THE GOAL IS WE'RE GONNA DO BETTER THAN THE MINIMUM 15%.
BUT WE WANT TO HAVE, FROM A, FROM A A FUND BALANCE PERSPECTIVE, AT LEAST 15% THERE.
TO THE EXTENT, EXTENT WE GENERATE MORE THAN 15% ARE WE IN 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, UM, THERE'S ADDITIONAL DOLLARS WHEN WE CLOSE OUT THE AUDIT, THAT GOES INTO THE SUCCEEDING FISCAL YEAR.
WE DON'T HOLD THEM IN RESERVE.
SOME OF THE OTHER CURRENT, UH, POLICIES THAT WE HAVE IN PLACE ARE, WE DO MAINTAIN A CONTINGENCY IN THE JOURNAL FUND OF $1 MILLION IN $3 MILLION IN THE CAPITAL BUDGET SIDE.
THAT'S REALLY JUST IF THINGS COME UP DURING THE FISCAL YEAR AND WE NEED TO MAKE ADJUSTMENTS, WE'VE GOT SOMETHING THAT WE CAN GO TO, UH, FOR THOSE, UH, HIGH PRIORITY ITEMS THAT MAY BE IDENTIFIED DURING THE FISCAL YEAR THAT WE'RE GONNA ADDRESS INTERNAL SERVICE FUND DEFICITS WITHIN THREE TO FIVE YEARS.
THINK ABOUT THE INTERNAL SERVICE FUNDS AS FUNDS OR, OR, OR, UH, COMPANIES THAT PROVIDE SERVICES TO THE REST OF THE ORGANIZATION.
GOOD EX GOOD EXAMPLES OF THAT.
ARE IT WORKERS' COMP OR WE'RE PROVIDING WORKERS' COMP.
THEY'RE PROVIDING INSURANCE FOR THE ENTIRE ORGANIZATION.
SO THESE ARE FUNDS THAT WE MANAGE, DEPENDING UPON WHAT'S HAPPENING WITH THEM, THEIR ACTUARIAL VALUATIONS, THINGS THAT GO ON WITH THOSE FUNDS, THEY CAN GET INTO A NEGATIVE POSITION.
AND UNDER, UH, ACCOUNTING STANDARDS ARE REQUIRED TO, TO GET THEM BACK IN A POSITIVE POSITION WITHIN A REASONABLE PERIOD OF TIME.
WE'VE DEFINED IT AS THREE TO FIVE YEARS, UH, ON BOND RATINGS.
YOU'VE SEEN THIS SCALE BEFORE.
UM, THIS IS A SCALE FOR FITCH, MOODY'S AND S AND P, UH, AAA BEING THE HIGHEST RATING YOU CAN GET.
AND THEN YOU SEE THE HIGH GRADE, UPPER MEDIUM GRADE, AND LOWER MEDIUM GRADE RATINGS.
JUST PUT THIS SLIDE IN HERE MORE FOR YOUR REFERENCE IN TERMS OF WHAT THE SCALES LOOK LIKE FOR EACH OF THE ENTITIES.
AS A REMINDER, WE ARE AAA WITH BOTH MOODY'S AND STANDARD AND PORES, AND WE'RE DOUBLE A PLUS WITH FITCH.
AND THEN IN TERMS OF IMPACT OF OUR DOWN, UH, RATING DOWNGRADE ON OUR GENERAL OBLIGATION SIDE, IF YOU LOOK AT ABOUT $2.5 BILLION IN ISSUANCES, WHICH IS, UM, ABOUT WHAT WE'VE DONE SINCE 2007, YOU CAN SEE THAT A ONE NOTCH DOWNGRADE IS ABOUT 17.5 MILLION TO 37 POINT HALF MILLION DOLLARS IN, IN IMPACT.
AND, AND WHEN WE'RE TALKING ABOUT THIS, WE'RE REALLY TALKING ABOUT, UM, ALL THREE OF THEM DOWNGRADING US, NOT ONE.
SO WE'RE REALLY TALKING ABOUT TODAY WE HAVE A SPLIT RATING WHERE WE HAVE AAA WITH TWO OF THE ENTITIES AND AA PLUS WITH ONE OF THE ENTITIES.
THIS REALLY ALLOWS US TO, UM, THIS REALLY LOOKS AT, IF WE WERE TO BE DOWNGRADED BY ALL THREE, YOU CAN SEE THE IMPACT FOR TWO LEVELS AND THREE LEVELS THAT ARE NOTED AS WELL IN TERMS OF WHAT WOULD HAPPEN IF WE WERE IN FACT DOWNGRADED SEVERAL LEVELS.
SO SOME OF THE THINGS THAT HAVE CHANGED IS WHEN WE LOOK AT THIS LAST STATE LEGISLATIVE SESSION, OBVIOUSLY ONE OF THE BIGGEST CHANGES COMING OUT OF THAT IS SB TWO, 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.
UM, WE WERE HOPING THAT THAT WAS GONNA BE MORE ALONG THE LINES OF A FIVE YEAR CARRY FORWARD, BUT DURING THE CONFERENCE COMMITTEES, THEY DID CUT THAT BACK TO A THREE YEAR TIMEFRAME.
MIX IT A LITTLE BIT MORE CHALLENGING, BUT IT IS DEFINITELY SOMETHING THAT HELPS BECAUSE WE CAN USE THAT CARRY FORWARD WHEN WE'RE COMING OUT OF A RECESSIONARY PERIOD TO HELP US RECOVER.
UM, ERIC MENTIONED BOTH OF THE, UH, MOODY'S AND, UH, FITCH HAVE PUT OUT REPORTS ON SB TWO.
MOODY'S REPORT LISTED IT AS BEING A CREDIT NEGATIVE.
SO WHEN YOU HAVE BOND RATINGS, YOU HAVE SOMETHING CALLED, UH, AN OUTLOOK ON YOUR RATING CAN BE NEGATIVE, IT CAN BE STABLE, OR IT CAN BE POSITIVE.
OUR RATINGS ARE STABLE CURRENTLY.
THIS IS A BROADER REPORT THAT THEY PUT OUT THAT BASICALLY SAID FOR ENTITIES IN TEXAS THAT, THAT ARE IMPACTED BY SSB TWO, WE CONSIDER SB TWO TO BE A CREDIT NEGATIVE BECAUSE IT IMPACTS OUR REVENUE RAISING ABILITY WITHOUT HAVING TO GO FOR A PUBLIC VOTE.
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SO THEY VIEW THAT AS LIMITING AND AS SOMETHING THAT WOULD BE CONSIDERED A NEGATIVE FACTOR, BUT NOT NECESSARILY THAT THEY WOULD CHANGE THE RATING.THEY'RE GONNA LOOK TO SEE HOW ENTITIES LIKE US ADJUST TO THIS NEW, UM, FINANCIAL REALITY WITH SB TWO.
FITCH WAS PROBABLY A LITTLE BIT STRONGER, AND THEY SAID THAT, YOU KNOW, THEY EXPECTED SB TWO TO HAVE SOME IMPACT ON LOCAL GOVERNMENT RATINGS.
THEY DID EXPECT TO SEE SOME DOWNGRADES, BUT SIMILARLY, THEY'RE GONNA WAIT TO SEE HOW ENTITIES ADJUST TO THIS NEW, UM, THIS NEW PROPERTY TAX STRUCTURE.
THE OTHER THING COMING OUTTA THE LEGISLATURE WAS SSB 1152, WHICH WAS COMPENSATION FOR USE OF THE PUBLIC RIGHT OF WAY.
AND AGAIN, THAT IMPACT STARTING THIS SEPTEMBER, WHICH WOULD IMPACT US IN F Y 2020 IS ABOUT A $7 MILLION REDUCTION IN GENERAL FUND BASED REVENUE.
SO WHEN WE TALK ABOUT THINGS COMING OUTTA THE LEGISLATIVE SESSION, THESE ARE THINGS THAT, THAT CERTAINLY CHANGE THE FINANCIAL PARAMETERS THAT WE MANAGE WITHIN.
UM, SO THEY, THEY, THEY ARE A REASON WHY WE NEED TO LOOK AT AND POTENTIALLY CHANGE OUR FINANCIAL POLICIES TO ADJUST TO THIS NEW, THIS NEW STRUCTURE.
THE OTHER THING THAT HAS CHANGED FROM A PARAMETERS PERSPECTIVE IS LAST NOVEMBER WITH THE PASSAGE OF PROPOSITION C.
YOU'LL RECALL THAT THE FIRE UNIT HAS THE UNILATERAL ABILITY, ABILITY TO CALL FOR BINDING ARBITRATION.
THAT DOES CHANGE THE RISK PROFILE FOR US, AND IT LIMITS, UH, TO SOME DEGREE EXPENDITURE FLEXIBILITY.
THAT WAS ONE OF THE THINGS THAT FITCH NOTED WHEN THEY DOWNGRADED US FROM AAA TO AA PLUS IN DECEMBER OF LAST YEAR.
UH, SS AND P AND MOODY'S HAVE TAKEN MORE OF THE APPROACH OF WE'RE GONNA WAIT AND SEE HOW PROPOSITION SEE IMPACTS THE CITY, BOTH OUR FINANCIAL POSITION, BUT THEN ULTIMATELY WHEN WE DO REACH RESOLUTION ON A FIRE CONTRACT SOMETIME IN THE FUTURE, WHETHER THAT'S THROUGH BINDING ARBITRATION OR THROUGH NEGOTIATION, WHAT DOES THAT LOOK LIKE AND HOW DOES IT IMPACT OUR FINANCIAL POSITION GOING FORWARD? SO THEY'LL LOOK AT ALL OF THAT AS WE DO FUTURE RATINGS.
A LITTLE BIT OF INFORMATION ON THE TAX RATE.
UM, WHEN WE SET THE PROPERTY TAX RATE, WE'RE DOING IT IN TWO COMPONENTS.
WE'RE DOING WHAT'S CALLED A MAINTENANCE AND OPERATIONS TAX RATE.
THAT'S THE PROPERTY TAX REVENUE THAT GOES INTO THE GENERAL FUND TO SUPPORT BASIC SERVICES.
WE ALSO HAVE A SEPARATE CALCULATION THAT WE DO FOR DEBT SERVICE.
THIS GOES INTO SUPPORT OUR BOND PROGRAM AND OUR PROPERTY TAX SUPPORTED DEBT THAT, UH, IS TIED TO OUR CAPITAL BUDGET, HAS NOTHING TO DO WITH, UH, BONDS OR THINGS THAT WE ISSUE FOR THE AIRPORT OR, UH, 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 JOURNAL 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, AND ONE OF THE FINANCIAL PARAMETERS THAT WE'VE BEEN WORKING UNDER THIS IS THE TOTAL TAX RATE.
SO IT'S BOTH THE M AND 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.
UM, IT'S ACTUALLY BEEN DECREASED SEVEN TIMES OVER THIS PERIOD OF TIME, BUT IT'S NOT BEEN INCREASED.
AND WE'LL TALK ABOUT, UM, WHAT THAT LOOKS LIKE ON A SUBSEQUENT SLIDE WHEN YOU LOOK AT TAXABLE VALUE CHANGES.
SO IRRESPECTIVE OF WHAT'S BEEN HAPPENING WITH VALUES, WE'RE GOING THROUGH A RECESSION.
WE'VE NOT INCREASED THE TAX RATE.
WE'VE HELD IT EITHER CONSTANT OR IN SOME YEARS, WE'VE ACTUALLY REDUCED IT.
THIS IS THE TAXABLE VALUATION CHANGE FROM YEAR TO YEAR.
SO YOU'VE SEEN THIS SLIDE BEFORE.
THIS IS CHANGE FROM 2010 TO 2019.
WE OBVIOUSLY WERE GOING THROUGH A RECESSION FROM 2010 TO 2013.
YOU'LL RECALL PROPERTY TAXES DO LAG THE ECONOMY.
SO AS WE'RE COMING OUT OF RECESSION, IT'S GONNA BE A LITTLE BIT SLOWER ON THE, ON THE PROPERTY TAX SIDE AS WE COME OUT OF THIS.
BUT THEN YOU CAN SEE WHILE WE HELD THE TAX RATE ON THE PREVIOUS SLIDE DURING THIS TIMEFRAME AND OUR REVENUES WERE ACTUALLY DECLINING, I'LL SHOW YOU IN A SECOND WHAT THAT, WHAT THAT LOOKED LIKE.
WE'RE DOING THAT WITH THE EXPECTATION THAT THEN WE CAN RECOVER ON THE OTHER SIDE.
WE'RE COMING OUTTA 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, UH, ON THE BASE OVER THIS ENTIRE PERIOD OF TIME FROM 2010 TO 2019, IT'S 2.2%.
IF I TAKE THIS SAME TIMEFRAME AND I PUT IN PLACE THE 3.5% ROLLBACK AND OUR CURRENT FINANCIAL POLICY SAYING WE'RE NOT GONNA INCREASE THE TAX RATE EVEN WHEN, EVEN WHEN THERE'S GROWTH OF LESS THAN 3.5%, THAT FALLS TO 1.6%.
SO IT HAS AN EVEN BIGGER IMPACT ON US IF WE'RE, IF WE DON'T ADJUST THE TAX RATE IN SOME OF THOSE YEARS.
THIS IS OUR GENERAL FUND, M AND O LEVY.
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THIS IS OUR MAINTENANCE AND OPERATIONS, OR OUR GENERAL FUND TAX LEVY GOING BACK TO 2009, THE SAME PERIOD OF TIME.THIS INCLUDES NEW IMPROVEMENTS.
SO THIS ISN'T JUST BASE VALUE CHANGES, THIS INCLUDES NEW PROPERTIES COMING ONTO THE TAX ROLL.
SO THIS IS, THIS IS THE ENTIRE PROPERTY TAX REVENUE IN THE GENERAL FUND.
THIS IS SOMETHING THAT, UM, AS WE TALKED TO THE LEGISLATURE AS, UH, JEFF WAS UP THERE AND WE WERE WORKING ON SB TWO OR, OR HB TWO WE WERE TRYING TO GET ACROSS, WAS THAT THERE WAS THIS MISCONCEPTION THAT CITIES ARE RAISING THE BASE TAX BY 8% EVERY YEAR.
THIS CLEARLY SAYS THAT'S NOT THE CASE.
AND YOU WOULD ACTUALLY HEAR LEGISLATORS REFER TO SAN ANTONIO GREW THEIR TAX LEVY BY 40% OVER THE PAST FIVE YEARS.
BUT THAT INCLUDES NEW IMPROVEMENTS.
NEW IMPROVEMENTS HAVE NOTHING TO DO WITH BASE VALUES.
NEW IMPROVEMENTS ARE NEW BUILDINGS, NEW HOMES, NEW PROPERTIES COMING ONTO THE TAX ROLL.
SO IF YOU LOOK AT FROM 2014 TO 2019, OUR GENERAL FUND TAX LEVEL, INCLUDING THE NEW IMPROVEMENTS, DID GROW BY 42.2% OR AN AVERAGE OF 7.3% ANNUALLY.
BUT IF YOU GO TO THE PRIOR FIVE YEARS, THE TOTAL TAX LEVY, INCLUDING DUE IMPROVEMENTS, GREW BY 3.7% IN TOTAL, OR ABOUT EIGHT TENTHS OF A PERCENT ANNUALLY.
SO IF YOU LOOK AT THE REVENUE IN 2009 OF 245.5 MILLION, IT'S LESS THAN 2010, 11, 12, 13.
FINALLY IN 14, WE GET BACK TO JUST BARELY WHERE WE BARELY OVER WHERE WE WERE IN 2009.
SO WE'RE ABLE TO MANAGE IN THAT TIMEFRAME AGAIN, WITH THE EXPECTATION THAT THERE'S GONNA BE RECOVERY AS WE COME OUT OF THE RECESSION, AND THAT WE'LL BE ABLE TO CAPTURE SOME OF THAT BASE VALUE GROWTH WITH A 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 IT'S GOT 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.
UM, IMPACT OF SB TWO DID WANNA SHOW YOU THIS REAL QUICKLY.
THAT, THAT IT'S A, IT'S A ROLLBACK RATE CAP AND HOW THEY CAP YOUR REVENUES IS, IS IT, IS, IT'S, IT'S AN IMPACT OR IT'S A CHANGE TO THE TAX RATE.
SO IF I LOOK AT THE LAST FIVE YEARS GOING BACK TO 2015, WE'VE HAD, UM, REALLY STRONG BASE VALUE GROWTH WHEN WE RUN THAT THROUGH THIS SSB TWO MODEL.
OUR ACTUAL TAX RATE HAS BEEN 35.4 SINCE IN 2015, AND THEN A LITTLE OVER 34 AND A HALF CENTS THERE.
UH, FROM 2016 TO 2019, WHEN THE THREE POINT A HALF PERCENT ROLLBACK RATE IS IN PLACE, OUR TAX RATE IS FALLING.
SO WHILE WE WERE ABLE TO HOLD OUR TAX RATE, WE DECREASED IT IN 2016 'CAUSE WE WERE ACTUALLY OVER THE 8% ROLLBACK RATE THAT YEAR.
WE'VE HELD IT CONSTANT SINCE THEN.
WE'VE NOT BEEN OVER THE, WE'VE NOT BEEN OVER THE ROLLBACK RATE.
WE WILL BE OVER THE, WE WOULD'VE BEEN OVER THE 3.5% ROLLBACK RATE IN EVERY ONE OF THESE YEARS.
SO OUR TAX RATE, INSTEAD OF BEING 34.68 CENTS TODAY WOULD BE 31 CENTS.
AND THAT WILL BE THE CASE EVERY YEAR.
IT WILL PUSH THE TAX RATE DOWN.
THE NEW IMPROVEMENTS ARE OUTSIDE OF THIS CALCULATION.
IT'LL HAVE A LITTLE BIT OF IMPACT ON NEW IMPROVEMENTS FROM THE STANDPOINT THAT IF YOU HAD $2 BILLION OF NEW IMPROVEMENTS COMING ONLINE IN 2015 AT A TAX RATE OF 35 CENTS AT THE NEW, SAME $2 BILLION IMPROVEMENTS COMING IN ONLINE IN 2019, YOUR TAX RATE'S NOT 31 CENTS.
SO THE AMOUNT OF MONEY YOU'RE GONNA GENERATE OFF A NEW IMPROVEMENTS IS A LITTLE BIT LESS.
THAT WILL COMPOUND OVER TIME AS WELL.
SO HAVING SAID ALL OF THAT, THE, THE, THE PARAMETERS HAVE REALLY CHANGED.
I MEAN, LEGISLATIVELY, WE'VE HAD A BIG CHANGE IN, IN RIGHT OF WAY USE COMPENSATION THAT'S GONNA AFFECT US NEXT YEAR.
SB TWO'S A REALLY BIG FUNDAMENTAL CHANGE, UM, IN TERMS OF HOW WE WILL LOOK AT PROPERTY TAXES.
AND AGAIN, ANYTIME WE'RE OVER THREE POINT A 5% FROM A, FROM A BASE VALUE PERSPECTIVE, THE M N O TAX RATES GOING TO FALL.
SO WHAT WE'D LIKE TO PROPOSE TO YOU IN TERMS OF, UH, UH, OF CHANGES TO THE FINANCIAL POLICIES, FIRST, WE'D RECOMMEND THAT WE MAINTAIN OUR CURRENT FINANCIAL POLICIES.
BUT THEN ON THE PROPERTY TAX MANAGEMENT SIDE, AND THIS IS REALLY GEARED TOWARDS THE MAINTENANCE AND OPERATIONS TAX RATE 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 ONE SAYS YOU WOULD ANNUALLY ADJUST THAT M AND O PROPERTY TAX RATE TO THE STATE IMPOSED ROLLBACK RATE OF 3.5%.
ANY YEAR, ANY YEAR THAT YOU'RE AT OR, OR GROWTH IS GONNA BE MORE THAN THREE POINT A HALF PERCENT, WE'RE GONNA HAVE TO CUT BACK TO THREE POINT A HALF ANYWAY, OR YOU HAVE TO GO TO AN ELECTION.
THOSE ARE REALLY YOUR ONLY OPTIONS.
SO THIS IS REALLY GEARED MORE TOWARDS THOSE YEARS WHEN WE'RE NOT AT THREE POINT A HALF PERCENT BASE VALUE GROWTH.
COULD WE ADJUST THE TAX RATE TO THE THREE POINT A HALF PERCENT CAP IN THOSE YEARS TO HELP MITIGATE SOME OF THE, SOME OF THE IMPACT HERE? THE SECOND OPTION SAYS WE WOULDN'T AUTOMATICALLY
[00:25:01]
ASSUME THAT GOING FORWARD, BUT THAT WE WOULD ANNUALLY REVIEW THAT STATE IMPOSED ROLLBACK RATE OF 3.5%, WHERE WE'RE LESS THAN IT, LESS THAN THREE POINT A HALF PERCENT.AND WE WOULD LOOK AT THINGS LIKE SERVICE DELIVERY, UM, SERVICE DELIVERY, CARRIED FORWARD TO THE PROPERTY TAX CAPACITY.
'CAUSE REMEMBER, IF WE HAVEN'T RAISED IT IN THOSE PRIOR THREE YEARS AND WE'RE UNDER THE THREE AND A HALF, THAT WILL GET CARRIED FORWARD.
SO WE'LL BE ABLE TO LOOK AT THAT.
UM, WE CAN LOOK AT, UH, SOME CERTAINLY CITY COUNCIL PRIORITIES AND THEN WE CAN LOOK AT IMPACTS TO TAXPAYERS AND THEN MAKE A RECOMMENDATION IN THE 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, AND WE'RE ACTUALLY BELOW ON PROPERTY TAX REVENUES.
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 GONNA BE LOOKING AT IT ANYTIME.
IT'S LESS THAN THREE AND A HALF.
WE'RE EITHER GONNA DO IT ANNUALLY AND MAKE THE RECOMMENDATION FOR PLANNING PERSPEC FROM A PLANNING PERSPECTIVE.
OR OPTION ONE IS WE'RE GONNA ASSUME WE'RE GONNA GO TO THAT THREE AND A HALF IF IT'S LESS THAN THREE AND A HALF.
BUT THAT THERE'S A WILLINGNESS TO DO THAT TO SOMEWHAT MANAGE THIS AND OFFSET THIS IMPACT NOT GONNA COMPLETELY OFFSET THE IMPACT.
THIS IS A BIG CHANGE GOING FROM EIGHT TO 3.5%.
YOU CAN CUMULATIVELY REDUCE THE IMPACT A LITTLE BIT FOR SB TWO, BUT JUST BECAUSE OF THE COMPOUNDING, WHEN YOU HAVE GROWTH ON BASE VALUES, YOU, YOU CAN'T REPLICATE THAT HERE EVEN WITH THIS.
BUT THIS WOULD GIVE YOU A TOOL TO BE ABLE TO ALLOW US TO, TO MANAGE THIS IN THE CONTEXT OF THE BROADER BUDGET.
ONE OF THE OTHER THINGS WE TALKED ABOUT WAS, UM, CLEARLY LOTS OF CONVERSATION ABOUT PROPERTY TAX RELIEF THAT WE SHOULD ANNUALLY BE LOOKING AT THAT AS WELL.
THE OPTIONS THAT WE HAVE UNDER CURRENT STATE LAW, UM, ARE A LITTLE BIT LIMITING.
THEY'RE VERY BROAD, SO IT'S A LITTLE BIT HARDER TO TARGET THEM INTO PARTICULAR AREAS THAT MAY BE EXPERIENCING GREATER GROWTH.
UM, BUT WE WOULD LOOK AT THOSE ON AN ANNUAL BASIS AND THEN CERTAINLY GOING INTO THE NEXT LEGISLATIVE SESSION, MAYBE NOW THAT, UM, THE ROLLBACK RATE ISSUE HAS BEEN ADDRESSED, MAYBE IT MIGHT BE, UH, A LITTLE BIT OF AN EASIER CONVERSATION TO TALK ABOUT OTHER OPTIONS FOR PROPERTY TAX RELIEF THAT ARE MORE TARGETED WITH THE LEGISLATURE TO SEE IF WE CAN GET OTHER OPTIONS PUT IN THAT WOULD GIVE US SOME ADDITIONAL FLEXIBILITY ON TAX RELIEF.
THE OTHER ONE IS THAT WE WOULD ANNUALLY REVIEW AND PERIODICALLY ADJUST FEES AND CHARGES TO PROVIDE FOR COST RECOVERY INFLATION OR ALIGNMENT WITH COMPARABLE CHARGES.
WE KIND OF DO THIS ALREADY AS A PRACTICE.
IT'S NOT A FORMAL POLICY WE'D LIKE TO PUT IN AS A POLICY.
AND AGAIN, AS WE'RE REVIEWING THOSE AND BRINGING THOSE FORWARD TO YOU, AT THE END OF THE DAY, YOU'RE GONNA LOOK AT IT IN THE CONTEXT OF THE ENTIRE BUDGET.
AND WE'LL MAKE RECOMMENDATIONS TO YOU ALL IN THE CONTEXT OF THE ENTIRE BUDGET.
BUT WE THINK IT'S IMPORTANT THAT THESE BE LOOKED AT, UM, ON AN ANNUAL BASIS.
SO THAT CONCLUDES THE FINANCIAL POLICY PRESENTATION.
AND I THINK I'M GOING RIGHT INTO THE PROPERTY TAX, UH, PROPERTY TAX RELIEF PRESENTATION.
SO ON THE PROPERTY TAX RELIEF, UH, OPTION, THERE WAS A C C R SUBMITTED BY COUNCILMAN COURAGE AND OR SPONSORED BY COUNCILMAN COURAGE AND COUNCILMAN PERRY THAT, UH, REQUESTED WE STUDY AND LOOK AT THE ESTABLISHMENT OF A GENERAL HOMESTEAD EXEMPTION, UH, THAT WE LOOK AT INCREASING THE OVER 8 65 EXEMPTION AND INCREASING OUR DISABLED PERSON'S EXEMPTION.
JUST TO GIVE YOU A LITTLE BIT OF BACKGROUND, AGAIN, OUR CURRENT PROPERTY TAX RELIEF, WE DO OFFER A $65,000 OVER 8 65, UH, EXEMPTION, AS WELL AS A $12,500 DISABLED PERSON'S TAX EXEMPTION ALONG WITH A TAX FREE.
SO WHEN YOU, I'LL TAKE THE, THE OVER 8 65 WHEN YOU TURN 65, 60 $5,000 OF TAXABLE VALUE OF YOUR HOME, UH, BECOMES NON-TAXABLE.
SO YOUR TAX BILL'S GONNA 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.
UM, 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 FROM THE PROPERTY TAX SIDE.
THERE'S JUST UNDER 473,000 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, MEANING THAT THEY'VE GOTTEN THAT $65,000 ADJUSTMENT OR $12,500 ADJUSTMENT AND THAT THEIR PROPERTY TAX BILL, THE DOLLAR VALUE HAS BEEN FROZEN OR IS FROZEN.
WE'VE GOT ABOUT, UH, 96,500 OVER 8 65 WITH JUST UNDER 8,800 DISABLED EXEMPTIONS.
AND THEN WE HAVE JUST UNDER 24,000 DISABLED VETERAN OR OTHER STATUTORY EXEMPTIONS IN
[00:30:01]
TERMS OF THE HOMESTEADS 236,754 HOMESTEADS.THIS IS BROKEN DOWN BY YEARS IN THE HOME.
SO IF YOU LOOK AT, UH, IN TOTAL WE'VE GOT 44%, AS I SAID, THAT ARE FROZEN.
IF YOU LOOK AT 'EM BY BAND, UM, THOSE THAT HAVE BEEN IN THEIR HOME FOR MORE THAN 30 YEARS, WE'VE GOT 94% OF THOSE THAT HAVE REACHED 8 65 AND THEIR TAXES ARE FROZEN.
AND THEN IF YOU LOOK AT 21 TO 30 YEARS, WE'VE GOT 71% OF THOSE IN THAT BAND THAT ARE, HAVE REACHED 8 65 AND ARE FROZEN.
UM, SOME OF THE QUESTIONS COME UP ABOUT, YOU KNOW, THAT'S WHAT WE DO.
WHAT DOES IT LOOK LIKE FOR THE OTHER TAXING ENTITIES? 'CAUSE WE'RE ONLY 21% OF THE TAX BILL.
THIS, UH, SLIDE JUST BREAKS THAT DOWN FOR YOU.
YOU CAN SEE THAT, UM, THE SCHOOL DISTRICTS HAVE A HOMESTEAD EXEMPTION AND SARAH HAS A HOMESTEAD EXEMPTION.
THE OTHER TAXING ENTITIES HERE DO NOT, UH, ALL THE ENTITIES OFFER AN OVER 65 OVER 8 65 EXEMPTION.
UH, ALL OF THEM OFFER A DISABLED EXEMPTION, WITH THE EXCEPTION, WITH THE EXCEPTION OF UNIVERSITY HEALTH SYSTEM AND ALL HAVE THE SENIOR TAX FREEZE WITH THE EXCEPTION OF UNIVERSITY HEALTH SYSTEM AND THE SAN ANTONIO RIVER AUTHORITY.
UH, THIS IS JUST A QUICK EXAMPLE TAX BILL HERE.
SO THIS IS, UH, TWO HOMEOWNERS BOTH, UH, HAVE A HOMESTEAD AT $200,000.
ONE IS AT AGE 64, 1 IS AT AGE 65.
YOU CAN SEE WHEN YOU LOOK AT THE CITY, UM, PORTION OF THE BILL HERE AT $1,100 BASED ON THAT, UH, $200,000 HOME THAT WHEN YOU TURN 65, THAT TAX BILL'S GOING TO DROP BECAUSE $65,000 OF THAT HOME IS NO LONGER CONSIDERED TAXABLE.
AND THAT $754 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.
AND THAT'LL BE THE CASE FOR, UH, ALL OF THE ENTITIES LISTED HERE BECAUSE ALL OF THEM ARE FROZEN, WITH THE EXCEPTION OF SARAH AND THE UNIVERSITY HEALTH SYSTEM.
SO THIS IS A, 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, AND IT REALLY DOESN'T MATTER WHAT, WHAT THE INCREASE ON THE VALUE OF THE HOME IS BECAUSE IT'S NOT GONNA CHANGE IN TERMS OF THE ACTUAL TAX BILL.
UM, WE KIND ALREADY TALKED ABOUT THAT.
SO WE TALK ABOUT SSB TWO 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 CARRY FORWARD.
UH, THE LOST REVENUE CUMULATIVELY TO THE CITY OVER THAT PERIOD, PERIOD OF TIME IS $81 MILLION.
UH, THE GENERAL FUND THIS YEAR WOULD BE $37 MILLION SMALLER.
THE, UM, PROPERTY TAX SAVINGS TO THE AVERAGE, UH, HOMESTEAD IS $12 OR ABOUT 98 CENTS A MONTH.
WE WERE ALSO ASKED TO LOOK AT SOME OPTIONS ON THE OVER 8 65 AND DISABLED EXEMPTIONS.
WE GAVE YOU A COUPLE OF DIFFERENT OPTIONS.
AGAIN, TODAY ON OUR 8 65 EXEMPTION, WE'RE AT $65,000.
UH, GOING TO 75,000 OR A HUNDRED THOUSAND, THAT IMPACT WOULD BE $4 MILLION FOR A $75,000 OPTION, 12.7 MILLION FOR A HUNDRED THOUSAND DOLLARS OPTION.
UM, AND WE DO 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, WHEN YOU'RE, WHEN YOU'RE CONSIDERING PROPERTY TAX RELIEF FROM A POLICY PERSPECTIVE, UM, IN TERMS OF WHERE YOU MAY GET THE, THE GREATEST VALUE, UM, TO THE MOST HOMEOWNERS, I DON'T KNOW THAT IT'S, THAT IT'S HERE BECAUSE IN THIS CASE, REMEMBER THEY'RE ALREADY FROZEN.
SO ONCE THEY REACH 8 65, YOU'RE GETTING A A LOWER TAX BILL, IT'S GONNA GO DOWN BECAUSE OF THE, THE EXEMPTION AMOUNT.
AND THEN AT THAT POINT, THE DOLLAR VALUE GETS, GETS FIXED.
SO THERE MAY NOT BE A LOT OF, UH, YOU HAVE TO FOREGO A LOT OF REVENUE HERE AND, AND IT MAY NOT HAVE AS MUCH OF AN IMPACT AS WHAT IS MAYBE WHAT YOU'RE LOOKING FOR.
UH, FROM A BROADER STANDPOINT, UH, ON THE HOMESTEAD EXEMPTION REQUIREMENTS, UH, 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, UH, A MINIMUM OF $5,000.
SO YOU CAN DO A VERY SMALL PERCENTAGE, BUT THAT MINIMUM THEN CONVERTS TO A $5,000, UH, EXEMPTION.
AND YOU CAN GO UP TO 20% OF THE APPRAISED VALUE.
UM, KEY PART HERE IS THAT IF YOU WANTED TO DO A HOMESTEAD EXEMPTION FOR F Y 2020, YOU ALL WOULD HAVE TO TAKE ACTION, UH, AS A BODY BEFORE JULY 1ST SO THAT WE COULD NOTIFY THE BARE APPRAISAL DISTRICT OF, OF YOUR INTENT TO, UH, OFFER A HOMESTEAD EXEMPTION FOR NEXT FISCAL YEAR.
AND THEN AS THE CITY MANAGER MENTIONED, YOU'D HAVE THAT OPTION TO DO THAT, UH, DURING THE GOAL SETTING SESSION ON THE JUNE, 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, THAT, UH, 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
[00:35:01]
ESTIMATED IMPACT TO THE CITY AS WELL AS THE ESTIMATED IMPACT OR SITE SAVINGS TO THE HOMEOWNER.WE GAVE YOU HOMESTEAD VALUES FROM A HUNDRED THOUSAND UP TO 500,000.
THE 1 78 9 29 IS OUR AVERAGE HOMESTEAD.
UM, OUR COSTA TAX BILL IS OVER, UH, ON THE THIRD COLUMN THERE.
AND, UM, YOU CAN SEE THE FIRST OPTION WE'RE GIVING YOU IS THE MINIMUM OPTION.
SO THE WAY YOU WOULD DO THAT IS YOU WOULD ADOPT THE HOMESTEAD EXEMPTION OF, OF A 10TH OF A PERCENT.
THAT WOULD TRIGGER THE MINIMUM REQUIREMENT.
SO EVERYBODY WOULD END UP GETTING A $5,000 HOMESTEAD EXEMPTION.
THAT WOULD COST US ABOUT $3.6 MILLION IN THE GENERAL FUND ABOUT ABOUT $2.2 MILLION IN DEBT SERVICE.
UH, THAT WOULD IMPACT CAPACITY GOING FORWARD FOR A TOTAL OF ABOUT 5.9 MILLION.
THE SAVINGS IS $28, UH, ACROSS THE BOARD THERE AGAIN, 'CAUSE 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 'CAUSE IT'S A PERCENTAGE OF THE HOMESTEAD.
AND THEN YOU CAN SEE THE IMPACT OF THE CITY STARTS GETTING MORE SIGNIFICANT IN TERMS OF LOST REVENUE TO, 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, UH, FRANCHISE, UH, 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.
UM, AND WOULD, WOULD BECOME EFFECTIVE IN, IN, UH, SEPTEMBER.
WE ALSO WE'RE ASKED TO LOOK AT THE TAX RATE REDUCTION, UH, OPTIONS HERE.
SO WE GAVE YOU EVERYTHING FROM A QUARTER CENT UP TO, UH, 1 CENT.
WE MADE THE ASSUMPTION HERE THAT THAT WOULD ALL BE IN THE GENERAL FUND, WHETHER YOU ENDED UP DOING THAT DIFFERENTLY.
UH, AND IT IMPACTED THE DEBT SERVICE FUND THAT WOULD IMPACT, UH, CAPACITY TO A GREATER UH, EXTENT.
BUT THIS GIVES YOU AN IDEA OF THE IMPACT.
UM, I'M GONNA GO TO THE FAR RIGHT, LOOK AT THE 1 CENT IMPACT.
IF WE REDUCE THE TAX RATE BY 1 CENT, IT WOULD COST US ABOUT $11.2 MILLION.
IF YOU LOOK AT THE IMPACT IN TERMS OF SAVINGS TO THE AVERAGE HOMESTEAD, UH, IT'S ABOUT $18.
I'M GONNA 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 IMPACT TO HOMESTEADS WITH A MINIMUM OPTION FOR ABOUT $5.9 MILLION VERSUS A 17 OR $18 MILLION IMPACT HERE TO THE AVERAGE HOMESTEAD IF WITH A 1 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, UH, 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, UH, UH, IN PROPERTY TAX RELIEF THIS YEAR.
ABOUT 44% OF OUR HOMESTEADS ARE FROZEN BECAUSE THEY'VE REACHED 8 65 OR OUR DISABLED.
WE'VE GOT A NEW ROLLBACK RATE STARTING AT THREE.
UH, UH, STARTING AT, UH, WE'VE GOT A NEW ROLLBACK RATE OF 3.5%, UH, AND STARTING IN 2021, UM, OUR EXISTING MAINTENANCE AND OPERATIONS, OUR GENERAL FUND PROPERTY TAXES WILL NOT GROW BY MORE THAN 3.5% WITHOUT AN ELECTION.
SO REGARDLESS OF WHAT BASE VALUES ARE DOING, WE, WE CAN'T GO ABOVE THAT.
AND THEN WE ARE GONNA FOREGO ABOUT $7 MILLION IN BASE GENERAL FUND REVENUES BEGINNING IN F Y 2020.
THE LAST THING I DID WANNA MENTION TOO IS THAT, UM, DURING THE FORECAST, WE MENTIONED TO YOU THAT C P S WAS DOWN PRETTY SIGNIFICANTLY THIS FISCAL YEAR, ABOUT NINE, ALMOST EIGHT, $9 MILLION AT FORECAST TIME.
IT HAS, UH, WE'VE MISSED THE LAST TWO MONTHS AS WELL.
SO THAT NUMBER HAS NOW GROWN TO $11 MILLION.
UM, AGAIN, WE SET MODERATELY CONSERVATIVE REVENUE PROJECTIONS.
OUR GOAL IS THAT WE'RE GONNA OUTPERFORM THOSE.
THAT HAS NOT BEEN THE CASE THIS YEAR ON C P S.
THE WEATHER HAS NOT, UH, BEEN VERY COOPERATIVE.
I GUESS DEPENDING UPON HOW YOU LOOK AT IT HAS BEEN REALLY COOL AS OPPOSED TO BEING HOT.
BUT, UH, FROM A REVENUE STANDPOINT, HASN'T BEEN REALLY COOPERATIVE.
UM, FUEL PRICES HAVE BEEN REALLY LOW.
SO ONE OF THE THINGS THAT WE'LL BE DOING IS, IN SOME RESPECTS, SOME OF THIS IS AN ANOMALY, RIGHT? YOU, YOU WOULDN'T EXPECT TO HAVE A 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 C P S FORECAST, WE'RE LOOKING AT THIS YEAR, WE'RE LOOKING AT NEXT YEAR.
WHAT, WHAT, YOU KNOW, WHAT'S THE PROBABILITY THAT WE'RE GONNA HIT THE FORECAST GOING FORWARD? AND WE DO HAVE THE OPTION, UM, 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 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, THIS IS MAYBE MORE OF AN ANOMALY, NOT AN ONGOING RECURRING ISSUE THAT WE'VE GOTTA DEAL WITH.
[00:40:01]
THAT'S SOMETHING WE'LL BE WORKING ON OVER THE COURSE OF THE SUMMER, IS LOOKING AT UPDATING THAT C P SS FORECAST, GETTING THE CERTIFIED ROLE 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, THIS ONE TIME ISSUE THAT WE'RE DEALING WITH WITH C P S REVENUES THIS YEAR.SO MAYOR WITH THAT, UH, CONCLUDES MY PRESENTATIONS ON THOSE TWO ISSUES AND I'D BE HAPPY TO ANSWER QUESTIONS.
ALRIGHT, THANK YOU VERY MUCH, UM, BEN, AND TO CLARIFY, UM, ERIC, THESE ARE THE TWO PRESENTATIONS FOR TODAY.
AND I'M JUST LOOKING FOR DIRECTION.
THESE ARE THE TWO THAT WE'RE, WE'RE LOOKING FOR SOME DIRECTION ON 'EM.
PART TWO ARE THE, UM, INFRASTRUCTURE AND PUBLIC SAFETY TOPICS.
WE'RE GONNA DO THAT TODAY TOO.
WE'RE GONNA DO THAT AFTERNOON TOO.
WELL, THIS IS A VERY HELPFUL PRESENTATION, UM, SOBERING IN SOME RESPECTS.
BEN, THANK YOU VERY MUCH FOR, UH, FOR IT.
UH, THE TWO ITEMS THAT, THAT WE NEED SOME DIRECTION FROM COUNCIL ON, UM, TO BE CLEAR, ON JULY, ON JUNE 21ST, WE'LL HAVE AN ITEM POSTED THAT WOULD ALLOW US TO TAKE ACTION.
UH, SHOULD THE COUNCIL DECIDE AT THAT POINT ON, UH, A NEW EXEMPTION, UH, ON THE PROPERTY TAX ROLLS, THAT DECISION WILL BE MADE ON JUNE 21ST? YES, SIR.
OR DEPENDING ON HOW THE CONVERSATION GOES.
ANY, UM, FOR AN, FOR AN EXEMPTION, YES.
IT NEEDS TO BE DONE BEFORE JULY 1ST.
AND, AND WE WOULD POST IT FOR THAT JUNE 21ST COUNCIL MEETING.
UM, SO I, I EXPECT WE'RE GONNA HAVE A HEALTHY DISCUSSION ABOUT IT TODAY, BUT WE'RE ALSO GETTING MORE CLARITY AS IT RELATES TO THE BUDGET ON THE 21ST.
UM, THE OTHER ITEM, UH, 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 THREE AND A HALF PERCENT 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, WITH THE BANKING ABILITY, UH, I DO BELIEVE THAT WE NEED TO REVIEW THAT ANNUALLY, UH, TO SEE WHERE OUR NEEDS ARE.
AND CERTAINLY SHOULDN'T BE LOCKED INTO JUST GOING TO THE CAP OR, UH, SAYING TO OURSELVES, WE'RE NEVER GONNA ADJUST IT EITHER.
SO I, I DO THINK THAT WE NEED TO HAVE SOME FLEXIBILITY THERE.
I MEAN, I THINK WE'VE HEARD A NUMBER OF YEARS NOW, UH, HAVING ROLLED THE RATE BACK, UH, SEVERAL TIMES OVER THE LAST 25 YEARS.
UH, 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.
AND SO I AM INTERESTED IN WHAT THE COUNCIL, UM, DISCUSSES THERE.
BUT, UH, I DO THINK IT'S, IT'S TIME WE DO LOOK AT THAT, UH, AND PROVIDE, UH, PROVIDE FOR AT LEAST A FIRST STEP IN A HOMESTEAD, UH, FOR OUR RESIDENTS.
SO EVERYTHING ELSE, I, I AGREE A HUNDRED PERCENT.
WE HAVE TO MAINTAIN OUR FI FISCAL POLICIES.
OUR DISCIPLINE IS ONE OF THE REASONS WHY WE'RE ABLE TO TALK ABOUT THESE THINGS.
UH, AS IT RELATES TO THE 66% OF PUBLIC SAFETY, OUR MINIMUM AMENDING BALANCE OF 15%.
IF ANYTHING, UH, WE SHOULD BE SANDBAGGING A LITTLE BIT RIGHT NOW KNOWING THAT, UH, WHAT THE ECONOMIC CONDITIONS ARE MORE GLOBALLY.
UM, AND I KNOW COUNCILMAN HALL HAS BROUGHT THIS UP BEFORE, BUT WE PERHAPS SHOULD BE TALKING ABOUT ADDING A HALF PERCENT, UH, TO THAT.
UM, IT'S PROBABLY NOT THE RIGHT YEAR TO DO IT, BUT, UH, LOOKING AT OUR RESERVES GOING FORWARD, I THINK, UH, WE'D BE FOOLING OURSELVES TO THINK IF THIS IS GONNA GET EASIER.
SO, UM, WITH THAT, I'M COMFORTABLE WITH, WITH WHERE THINGS ARE AND ANXIOUS TO HEAR MY COLLEAGUES' COMMENTS AS WELL.
UH, COUNCILMAN GRA THANK YOU, MAYOR.
SO FOR THE CURRENT FINANCIAL POLICIES, YOU'RE SAYING TO MAINTAIN, UH, YOUR RECOMMENDATION IS TO MAINTAIN WHAT OUR CURRENT FINANCIAL POLICIES ARE, BUT THEN LOOKING AT THOSE TWO OPTIONS? YES, MA'AM.
SO IS THAT ENOUGH THOUGH? THERE'S ACTUALLY THREE, THERE'S, THERE IS THE, UH, TWO OPTIONS ON PROPERTY TAX RATE MANAGEMENT THAT WE'D LIKE SOME FEEDBACK ON.
ONE WOULD BE TO ASSUME WE'RE GONNA GO TO THE 3.5% ROLLBACK AND EVERY YEAR THAT WE'RE NOT, WHAT'RE EVERY YEAR THAT WE DON'T HAVE 3.5% GROWTH IN BASE VALUES THAT WE WOULD GO TO THREE POINT HALF PERCENT, MEANING YOU HAVE TO RAISE THE TAX RATE.
LET'S, I'M GONNA TALK ABOUT THAT IN A SECOND.
BUT YOUR FIRST ONE IS THE GENERAL FUND MANAGED STRUCTURAL BALANCE, MAINTAIN A TWO YEAR BUDGET PLAN, PUBLIC SAFETY, 66%.
UM, BUT YOU'RE ALSO TELLING US THAT THE, THE RATING AGENCIES ARE LOOKING AT US, WHAT ARE WE DOING TO COUNTER OR ELSE TO SHORE UP WHATEVER THE STATE JUST DID? THAT'S RIGHT.
SO, 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
[00:45:01]
STRUCTURAL BALANCE, ET CETERA, BUT, UM, THE OTHER OPTIONS THAT YOU'VE PUT FORWARD, THESE THREE OPTIONS, THEY WILL BE LOOKING AT ALL OF IT, BUT THEY WILL CERTAINLY FOCUS ON THE GENERAL FUND BECAUSE OF SB TWO.THIS WOULD BE A DEVIATION FROM WHAT WE DO TODAY.
BECAUSE TODAY WE, WE HOLD THE M AND O GENERAL FUND TAX RATE REGARDLESS OF WHAT VALUES YOU'RE DOING, UNLESS WE EXCEED THE 8% ROLLBACK, IT STAYS.
SO IF WE HAVE NEGATIVE GROWTH IN BASE VALUES, 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 AND SAYS OPTION ONE IS WE GO TO, WE'RE GONNA ASSUME WE'RE GONNA GO TO THE 3.5% EVERY YEAR.
AND THAT WOULD BE TO JUST THE SAME THING WE'RE DOING RIGHT NOW.
THAT WOULD ACTUALLY BE TO, WELL, ACTUALLY NO.
SO THEN OPTION TWO IS THE EVERY YEAR, RIGHT? RIGHT.
WE WOULDN'T MAKE THAT ASSUMPTION, BUT ANY YEAR WHERE WE'RE UNDER THREE POINT A HALF PERCENT, WE WOULD STUDY IT, LOOK AT IT, BRING YOU A RECOMMENDATION.
AND THEN THE OTHER TWO ARE ON SLIDE 16, I BELIEVE 16.
UH, THIS KIND OF GOES WITH THE PROPERTY TAX MANAGEMENT.
WE KNOW THAT CERTAINLY YOU'VE HAD A LOT OF CONVERSATION ABOUT PROPERTY TAX RELIEF.
SO WE WOULD BE LOOKING AT THAT ANNUALLY AS WELL.
THE OTHER ONE LISTED THERE IS WE HAVE A NUMBER OF FEES AND CHARGES, UM, THAT WE HAVE, UH, 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 I, I THINK I, I LIKE THAT ONE AS WE MOVE FORWARD IN THE OPTION TWO WITH THE MAINTAINING THE FLEXIBILITY.
UM, 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, OUR LEGISLATORS NOW TO START DESIGNING AND DRAFTING WHAT WE NEED TO DO, UM, WITH AS WE WE MOVE FORWARD, UM, FINALLY, UH, TO THE PROPERTY TAX RELIEF.
THANK YOU FOR PROVIDING ALL THIS INFORMATION.
SOME HAS BEEN THE SAME ON SLIDE NUMBER FIVE.
UM, ACTUALLY IS IT SLIDE THREE? NO, SLIDE FIVE, THE TAX, UH, THE PROPERTY TAX STATISTICS.
I THINK YOU'VE, UM, YOU'VE SHARED THIS WITH US BEFORE.
AND SO I DON'T KNOW IF WE HAVE THIS OR IT WAS PART OF OUR, THE MAYOR'S HOUSING TASK FORCE DATA OR A MAP SHEET, UM, THE DISTRIBUTION OF THIS YEARS IN HOME, THE, 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 GEN ARE BEING GENTRIFIED THAT ARE PART OF THESE MAPS IN THE, UM, THE HOUSING TASK FORCE? I KNOW THAT WE HAVE, UM, 'CAUSE I KNOW WHEN WE DID THIS ANALYSIS, I KNOW WE HAVE MAPS THAT SHOW, UH, EVERYONE THAT HAS THIS EXEMPTION.
I DON'T BELIEVE WE HAVE MAPS THAT SHOW BROKEN DOWN BY YEARS OF SERVICE.
WE WOULD HAVE YEARS OF SERVICE, UM, YEARS IN THE HOME, WE WOULD HAVE TO GO WORK ON THAT PIECE.
EVERYBODY THAT'S GOT THIS EXEMPTION, AND FROM WHAT I RECALL, IT'S PRETTY WELL SPREAD OUT OVER, OVER THE ENTIRE CITY BECAUSE THIS IS BASED ON AGE.
BUT WHAT I ALSO WANNA SEE IS IF WE CAN FOCUS OR SEE WHERE, IF WE HAVE A LARGE GROUPING IN THESE AREAS OF TRANSITION IN OUR CITY OKAY.
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, UH, MAKING ANY SPECIFICATIONS WHEN WE'RE LOOKING AT EXEMPTIONS.
IS THAT CORRECT? IN TERMS OF THE HOMESTEAD OR RIGHT.
IN TERMS OF, OF HOMESTEAD THAT ONLY IF YOU'RE IN THIS CERTAIN AREA OR SPOT, ET CETERA.
IT'S GOTTA BE, UM, THE TOOLS WE MOSTLY HAVE TODAY ARE VERY BROAD AND JUST KIND OF COVER THE ENTIRE, THE ENTIRE GROUP OF HOMESTEADS.
AND, UM, YOU SAID, UH, ON SLIDE NUMBER 10, WE WERE LOOKING AT THE OVER AGE 65 EXEMPTION AND THE AL 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
[00:50:01]
IN THE, THE FOREGO REVENUE OF $4 MILLION.UM, I THINK THAT'S, THAT'S INTERESTING IN, IN LOOKING AT THAT.
I'M, I'M INTRIGUED BY THAT AND SEEING THAT AS A TOOL.
BUT WHAT YOU MENTIONED WAS YOU DIDN'T BELIEVE THAT THIS IS WHERE WE COULD GET THE MOST, WHERE PEOPLE COULD SEE THE MOST SAVINGS.
TAXPAYERS COULD SEE THE HOMESTEAD.
HOMEOWNERS COULD SEE THE MOST SAVINGS.
WHERE DO YOU THINK HOMEOWNERS COULD SEE THE MOST SAVINGS? WELL, I, I SAID THAT IN A RELATION TO THIS BECAUSE, UM, THIS ONLY APPLIES TO, FOR EXAMPLE, THE TOP BAND.
WELL, ONCE YOU'VE GOTTEN 65, YOU GET THE $65,000 REDUCTION AND THEN IT'S FROZEN.
SO YOU DON'T HAVE TO WORRY ABOUT WHAT THE VALUE OF YOUR HOME WAS DOING.
SO IN THE CASE OF GOING TO, FOR EXAMPLE, $75,000, UM, WE WOULD BE GOING FOR, FOR GOING $4 MILLION IN REVENUES FOR ALL THOSE PEOPLE THAT ARE CAPPED.
THEY GET A LITTLE BIT OF A TEMPORARY REDUCTION 'CAUSE IT'S BEEN FROZEN FOR YEARS, AND THEN IT'LL CREEP BACK UP TO THAT SAME DOLLAR CAP AND THEN IT STAYS THERE.
THEY'LL GET SOMETHING HERE, BUT THE OTHER 55% THAT AREN'T FROZEN, OKAY.
SO YOU'RE, YOU'RE GETTING MORE OF A BENEFIT WITH THE DOLLARS THAT YOU'RE FOREGOING FROM THE CITY BUDGET? I GUESS SO, SO COUNCILWOMAN, LET ME JUST, UH, I'LL ADD JUST A LITTLE BIT.
SO BEN TALKED ABOUT THREE DIFFERENT OPTIONS.
IF YOU CHANGE THE, THE M AND O RATE, RIGHT? IT IMPACTS COMMERCIAL, RESIDENTIAL, RIGHT? EVERYBODY ACROSS THE BOARD, THIS OPTION, IF THIS IS AN OPTION, IT IMPACTS, UH, THOSE OVER 65 OR THAT ARE DISABLED AS WELL.
THE HOMESTEAD EXEMPTION OPTION IMPACTS RESIDENTIAL ONLY.
SO DEPENDING ON THE LEVER, IT IMPACTS DIFFERENT SEGMENTS OF THE, OF THE RIGHT CITY.
AND, AND THAT'S WHY I THINK WHERE 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 IN, IN DISTRICT THREE.
AND I THINK PROBABLY, WELL, I'LL JUST SPEAK FOR DISTRICT THREE.
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 ALLEVIATION.
UM, EVEN IF IT'S JUST A LITTLE BIT IN THEIR BILL, IT STILL GOES A LONG WAY.
SO THAT IS WHERE I'M TRYING, I'M SEEING THIS ALTERNATIVE OF $75,000 TO HELP THIS, UH, GROUP AND THIS POPULATION IN OUR, IN THE COMMUNITY HERE, WHO ARE THE ONES THAT ARE REALLY, UM, HAVING A HUGE IMPACT OR IT'S HAVING A HUGE IMPACT ON THEM.
SO THAT'S WHY I'M, I'M FOCUSED IN THIS AREA AND I KNOW IT WOULD ONLY TOUCH ONE LEVER, BUT, UM, IT'S ONE THAT ARE, ARE HAVING THE MOST, UM, VULNERABLE.
IT'S AT THE VULNERABLE TIME RIGHT NOW.
UM, I AM INTERESTED THOUGH, IN THE, UM, THE HOMESTEAD EXEMPTION SCENARIO AS WELL FOR THE MINIMUM 5,000 EXEMPTION.
UM, I'M, I'M INTERESTED IN THAT TOO.
SO I'M TRYING TO LOOK AT, UM, THE DOLLARS AMOUNT AS WELL.
BUT, UM, I'M GONNA 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.
UH, I THOUGHT THIS WAS A REALLY GOOD PRESENTATION, BOTH OF 'EM, AND I APPRECIATE THAT.
THERE'S STILL ONE THING THAT I, I ALWAYS, UH, HAVE HAD A QUESTION IN MY MIND ABOUT CAN YOU EXPLAIN THE TWO YEAR BUDGET PLAN MM-HMM.
COULD YOU RE-EXPLAIN THAT IN A LITTLE MORE DETAIL ABOUT HOW THAT'S SUPPOSED TO WORK? SO THE, THE, THE MINIMUM TARGET ENDING BALANCE FOR THE GENERAL FUNDS MADE UP OF TWO PIECES.
THERE'S A BUDGETED RESERVE OF 10%, AND THEN THERE'S AN ENDING BALANCE PART OF 5% THAT FLOWS THROUGH THE TWO YEAR.
AND SO WHEN WE DO THE BUDGET AND 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 IS, IT KIND OF SMOOTHS OUT SOME OF THE PEAKS AND VALLEYS THAT YOU GET FROM
[00:55:01]
VOLATILE THINGS LIKE C P S REVENUES OR SALES TAX REVENUES AS THEY'RE MOVING.THIS KIND OF SMOOTHS THAT OUT A LITTLE BIT SO THAT WE'RE NOT COMING TO YOU SAYING, HEY, WE HAVE A LOT OF MONEY.
WE CAN ADD A LOT OF RECURRING EXPENSES.
AND THEN THE NEXT YEAR WE'RE COMING TO YOU SAYING, YOU KNOW WHAT? WE GOTTA CUT A WHOLE BUNCH AND WE'RE GONNA HAVE TO ELIMINATE POSITIONS.
THIS REALLY TRIES TO HELP SMOOTH THAT OUT.
BUT IF SOME OF THAT MONEY IS INTENDED OVER A TWO YEAR PERIOD TO SMOOTH IT OUT, DOESN'T THAT AFFECT HAVING A 15%, UH, BALANCE? NO.
IT'S PART OF THAT 15% BALANCE.
WELL, I KNOW YOU AND I ARE GONNA, UH, I THINK WE'RE GONNA MEET, SO I WILL, I'LL BRING THAT.
I THINK IT'S EASIER PROBABLY JUST TO, TO SHOW YOU HOW IT FLOWS THROUGH FROM YEAR TO YEAR MM-HMM.
TO THE EXTENT WE GO OVER THAT AGAIN, WE PUT THAT BACK IN PRODUCTION IN THE NEXT FISCAL YEAR.
LET ME ASK YOU A FEW OTHER QUESTIONS.
WE HAVE, UH, AN INTERNAL, UH, OR WE HAVE BONDED INDEBTEDNESS.
AND WHAT IS OUR CURRENT BONDED INDEBTEDNESS FOR THE CITY? UH, FOR THE PROPERTY TAX SIDE? ABOUT $2 BILLION.
AND, AND NOW THAT'S OUR TOTAL CAPACITY.
THAT'S THE AMOUNT OF, UH, DEBT WE HAVE OUTSTANDING ON THE PROPERTY TAX SIDE THAT EXCLUDES AIRPORT REVENUE, BONDS, THOSE KINDS OF THINGS.
WHAT IS, WHAT IS THE CAPACITY OF OUR EMBODIED, UH, OF OUR INDEBTEDNESS WITH THAT RATE OF TWO POINT OR 21 CENTS? BASICALLY, THAT IS SOMETHING WE UPDATE EVERY YEAR.
UM, SO WE'LL BE GOING THROUGH THAT IN THE COURSE OF THE SUMMER.
UM, I DON'T HAVE IT IN FRONT OF ME.
THE, THE, WE BUILD IN FIVE YEAR, WE BUILD IN BOND PROGRAMS EVERY FIVE YEARS.
SO RIGHT NOW, BASED ON THAT 21 CENT TAX RATE, UM, WE'RE AT 925 MILLION.
SO I THINK FOR, FOR UM, 2022, WE'VE BUILT IN NINE, AM I RIGHT? 9 25? BUT $925 MILLION WOULD BE THAT PROGRAM AND A SIMILARLY SIZED PROGRAM IN 2027.
WELL, I GUESS THE WAY I'M LOOKING AT IT IS, UH, IF WE WERE TO LOWER THAT SEGMENT OF OUR TAX BILL, IN OTHER WORDS, LOWER OUR BONDING INDEBTEDNESS CAPACITY MM-HMM.
UH, ACCORDING TO WHAT YOU'RE SAYING, IF OUR CAPACITY, UH, IS, IF WHAT WE'VE GOT NOW IS 2 BILLION, WOULD WE STILL HAVE THE CAPACITY TO DO WHAT WE WANTED IN THREE OR FOUR OR FIVE YEARS? UH, AND, AND ADD SOME ADDITIONAL FUNDING IF WE'RE HAVING SOME PROBLEMS THIS YEAR OR NEXT YEAR? BY DOING THAT, LET ME, UH, LET ME PULL UP A SLIDE HERE AND I'LL, I'LL, 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 RIGHT IMPACT IS.
CAN YOU PULL UP FOR ME, SLIDE 13 FROM THE FINANCIAL POLICIES PRESENTATION PLEASE.
SB TWO, THAT 3.5% CAP ON THE M AND O ALSO INCLUDES ANY SHIFTING OF THE TAX RATE.
SO ASSUMING YOU HAVE ROOM TO SHIFT IT, AND YOU CAN STAY UNDER THE 3.5%, LET'S SAY WE HAVE BASE VALUE GROWTH OF 3.5%, THERE'S NO ROOM TO SHIFT, YOU'D BE OVER.
IF YOU HAD A YEAR WHERE YOU COULD SHIFT THIS SLIDE KIND OF SHOWS YOU WHAT'S GOING TO BE HAPPENING, YOU'D SHIFT A PENNY OVER, AND THEN AS SOON AS BASE VALUE START TO GO OVER 3.5%, YOU START LOSING THAT TAX RATE.
SO IT CON IT'S CONSIDERED PART OF THE THREE POINT A HALF PERCENT CAP.
SO IF WE RAISED, IF WE MOVE 2 CENTS OVER FROM, UH, BONDED INDEBTEDNESS TO O AND M, WE MIGHT END UP EXCEEDING THAT THREE POINT HALF AND WE REALLY COULDN'T DO IT THEN.
AND THAT, THAT WAS KIND OF THE QUESTION I, I WANTED TO FIND OUT ABOUT, UM, ON SLIDE 16, I THINK IT'S ON THIS, UH, PAGE HERE.
UM, I THINK THAT WE OUGHT TO BE CONSIDERING, UH, RENEWING THE PROPERTY TAX RELIEF, UH, UH, ON A REGULAR BASIS.
MY GOAL, AND I, I BELIEVE MY COUNCIL FRIEND'S GOAL WAS THAT WE WANTED TO BUILD UP THIS TAX RELIEF OVER TIME AND START SOMEWHERE, WHETHER IT'S A MINIMUM OF 1% OR 5% OR WHATEVER, BUT OVER A PERIOD OF YEARS, EVENTUALLY GET TO THAT 20%.
AND SO I THINK THOUGH THAT WOULD ALWAYS CALL ON AN ANALYSIS OF WHERE WE ARE YEAR BY YEAR TO SEE IF WE ACTUALLY COULD MAKE THAT LEAP.
IF WE STARTED AT SOMETHING SIMPLE LIKE 1%.
RIGHT NOW, WE KNOW THAT'S $28 FOR EVERY HOMEOWNER.
UM, AND THAT WOULD RECUR YEAR AFTER YEAR.
IF THE FOLLOWING YEAR WE WENT TO 5%, THEN THAT STARTS INCREASING.
THE MORE EXPENSIVE YOUR HOME IS, WE UNDERSTAND THAT.
[01:00:01]
UH, AND 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 BE OUR FINANCIAL CONDITION.
ALTHOUGH OUR GOAL MAY BE TO GET TO X SOMEDAY.
BUT I THINK WE OBVIOUSLY NEED TO BE LOOKING AT YOUR FINANCIAL CAPABILITY EVERY YEAR BEFORE YOU DECIDE, OKAY, WE'RE GONNA 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.
I THINK THAT'S, I THINK THAT'S, YEAH, THAT'S CORRECT.
SO YEAH, WE HAVE TO KEEP THAT IN MIND.
UH, ONE OTHER POINT I WANTED TO POINT OUT.
I'VE BEEN FOLLOWING C P S PRETTY CLOSELY AND I KNOW THEY'RE, THEY'RE LOWER NOW AND, UH, I DON'T KNOW THAT WE SHOULD BE TOO OPTIMISTIC THAT THEY'RE GONNA BE GOING UP VERY HIGH VERY SOON.
THEY CLOSED DOWN TWO PLANTS THAT PROVIDED A LOT OF EXTRA ENERGY THEY COULD SELL IN THE SUMMERTIME.
AND THAT'S A MAJOR CONTRIBUTOR, UH, TO WHY THEY'RE FORECASTING EARNING $10 MILLION LESS THIS YEAR.
UH, AND, AND THE YEAR ISN'T OVER FOR THEM OR FOR US.
SO, UH, I KNOW YOU SAY, YOU SAY THIS COULD BE AN ANOMALY, BUT I THINK WE MATTER.
WE MAYBE WANT TO CONSIDER IT MORE AS A, A LIKELY, UH, CONTINUATION.
SO JUST THROWING THAT IN ANYWAY, COUNCILMAN, WE DID BUILD, UM, WHEN WE DID THE FIVE YEAR FORECAST, WE BUILT THAT IN.
SO THE BUDGET OR THE FORECAST FOR 2020 FOR C P SS IS $360 MILLION.
UM, SO IT'S GOT A LITTLE BIT OF GROWTH OFF OF WHERE WE ARE.
UM, BUT THAT'S SOMETHING WE'RE GONNA CONTINUE TO WORK WITH THEM ON AND UPDATE.
BUT YOU'RE RIGHT, THERE'S A COUPLE OF BIG CONTRIBUTING FACTORS.
WEATHER, UH, NATURAL GAS PRICES, UH, PARTICULARLY COMING OUTTA WEST TEXAS ARE REALLY, REALLY LOW PRICES.
AND C P S IS ABLE TO GET A LOT OF THEIR GAS FROM THERE.
UM, AND THEN AS YOU MENTIONED, THE TWO, UM, UH, GAS PLANTS THAT THEY, OR NOT GAS PLANTS, COAL PLANTS THAT THEY CLOSED LAST DECEMBER WILL IMPACT THEIR CAPACITY TO DO SOME OFF SYSTEM SALES.
THEY HAVE SOME CAPACITY, BUT IT WON'T BE AS MUCH, MUCH AS THEY HAD LAST SUMMER.
UM, SO, UH, THANK YOU BEN FOR THE PRESENTATION.
AND, UM, I, I'VE TRIED TO UNDERSTAND, YOU KNOW, ALL THE CHANGES THAT ARE FORTHCOMING.
UM, 'CAUSE IT TAKES A LONG TIME JUST TO FIGURE OUT THE BUDGET.
AND THEN SUDDENLY NOW THAT I FELT REALLY CONFIDENT, WE HAD A LOT OF CHANGES, UH, FROM THE STATE.
SO JUST TO, UM, UH, UM, YOU KNOW, GIVE MY FEEDBACK, MY SENSE IS JUST GIVEN THE POTENTIAL INSTABILITY THAT WE SHOULD JUST HOLD, UH, AND NOT MAKE ANY CHANGES RIGHT NOW.
AND THAT'S REALLY WHAT I WOULD LIKE TO SEE US DO, UM, IS, IS NOT MAKE ANY ADJUSTMENTS TO THE BUDGET.
WE DO ANTICIPATE THAT THERE WOULD BE SOME, WE KNOW THAT WE'RE GONNA HAVE REDUCTION IN SOME WAYS.
I KNOW THERE IS A DESIRE AMONG SOME, AS OF US ON THE COUNCIL TO SEE SOME CHANGES IN, UH, C P S DUE TO A POTENTIAL CLIMATE ACTION PLAN.
I KNOW THAT, UM, AS WE ARE CONTINUING TO ADD STREET MAINTENANCE AND IMPROVE OUR WALKABILITY AND, UH, HOPEFULLY IMPROVE TRANSIT IN OUR COMMUNITY, UH, THAT THAT'S ALL THINGS THAT ARE STILL UNSTABLE AND JUST GIVEN, YOU KNOW, EVEN THE CONTRACT WITH THE FIREFIGHTERS, THAT'S STILL NOT YET TO BE DETERMINED.
UH, I THINK WE JUST SHOULD JUST HOLD WITH WHAT WE'VE GOT.
SO, UM, IF THERE DID, YOU KNOW, HAVE TO BE A CHANGE AND, AND THAT MY, UM, THERE WAS NOT ENOUGH DESIRE ON THE COUNCIL TO JUST STABLE, UM, PERHAPS THE ONE THAT I THINK WOULD BE THE LEAST, UH, HAVE THE LEAST IMPACT TO OUR BUDGET, UH, WOULD BE INCREASING THE OVER 65 EXEMPTION FROM 65 TO 75.
SO, UM, YOU KNOW, I, I JUST, UH, I I I, 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 THAT THOSE ARE, THAT'S MY FEEDBACK.
BUT I DO HAVE A, A QUESTION AND I, I THINK COUNCILMAN VERAN, UM, UH, ASKED THE QUESTION WHILE, BUT IF YOU COULD PLEASE JUST REITERATE, WHEN, WHEN WE'RE TALKING ABOUT A THREE, THREE AND A HALF PERCENT CAP, YOU HAVE MADE A SUGGESTION THAT WE, EVERY YEAR CHART, UH, 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.
[01:05:01]
AND, AND WHAT WOULD BE THE, THE TERM OF THAT? YOU'D BE LOOKING AT IT ON AN ANNUAL BASIS? OKAY.SO BASED ON WHATEVER'S HAPPENING WITH, WITH VALUES, CARRY FORWARD ALL OF THOSE, WE WOULD BE LOOKING AT, UM, WHAT THE IMPACT IS.
SO IF YOU 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.
IT'S, SO THE, THE CHANGE WITH THAT POLICY THAT WE'RE TALKING ABOUT IS, UM, FROM 2015 FORWARD, ROUGHLY THE BASE VALUE GROWTH IS OVER 3.5%.
WE'D HAVE TO LOWER, WE'RE GONNA HAVE TO LOWER THE TAX RATE.
YOU EITHER HAVE TO GO TO ELECTION OR YOU HAVE TO LOWER THE TAX RATE TO MEET THAT THREE POINT A HALF PERCENT REQUIREMENT.
THE THINGS THAT'S DIFFERENT IS THAT 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 THREE POINT A HALF PERCENT OR CLOSER TO THE 3.5%.
IN THE PAST, WE HAVEN'T CHANGED IT.
WE'VE JUST SAID WE'RE JUST GONNA LEAVE THE TAX RATE ALONE AND WE'LL JUST DEAL WITH LESS REVENUE.
THIS SAYS WE'RE GONNA CHANGE THE TAX RATE IN THOSE YEARS, OR AT LEAST IN SOME OF THOSE YEARS, NOT ALL THE YEARS, BUT WE'D BE LOOKING AT THAT AS PART OF THE BUDGET.
THE POLICY'S REALLY GEARED TO, TO, TO CHANGE THE DYNAMIC A LITTLE BIT IN TERMS OF SB TWO AND HOW WE'RE HAVING TO DEAL WITH IT AND NOT SAY THAT WE'RE NEVER GONNA INCREASE THE TAX RATE.
WE'LL, WE'LL ALWAYS BE CAPPED WHEN THERE'S GROWTH, BUT WHEN WE'RE LESS THAN THREE AND A HALF, WE'RE JUST NOT GONNA INCREASE THE TAX RATE.
WHAT THAT REALLY MEANS IS THAT THE TAX RATE'S GONNA BE FALLING AND THAT YOUR AVERAGE GROWTH OVER TIME WILL BE LESS THAN 3.5%.
AND SO IT MAKES IT HARDER AND HARDER FOR US TO KEEP UP WITH JUST OUR ONGOING COSTS.
AND THEN YOU WOULD HAVE TO COME TO PRESENT TO US, AL EVERY TIME.
WE WOULD THEN HAVE TO APPROVE OR NOT APPROVE, UM, WHICH I KNOW Y'ALL COME TO US EVERY QUARTER ANYWAY.
BUT IF EVERY QUARTER WE WERE HAVING TO MAKE THAT DECISION, NO, I THINK IT WOULD NOT BE GOOD.
IT'D BE PART OF THE BUDGET PROCESS ANNUALLY.
SO FROM PLANNING PERSPECTIVE, I SEE.
DO WE GO TO THREE AND A HALF OR DO WE STAY UNDER THE THREE AND A HALF? AND, 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 3.5%.
COUNCILMAN BROCK HOUSE, UM, COUNCILMAN SANDOVAL.
OH, YOUR, YOUR IPADS ARE SWITCHED.
I THINK THEY MAYBE SWITCH WITH SOMEONE ELSE, BUT I'LL GO, I'LL GO AHEAD AND GO.
UM, JUST TO THANK YOU, BEN, FOR YOUR PRESENTATION.
UH, QUICK CLARIFICATION ON THE SECOND PRESENTATION.
SLIDE SIX HAS A SAN ANTONIO AREA EXEMPTION COMPARISON.
UH, UNDER THE COUNTY JURISDICTION HAS GOT AN X ON HOMESTEAD AS OPPOSED TO A CHECK MARK.
IT IS A, THERE IS A, OH YEAH, SECOND ONE.
THE, SO YES, WE WERE JUST TRYING TO GIVE YOU A COMPARISON OF THE TAXING ENTITIES HERE.
SO, UM, SO IN TERMS OF WHO PROVIDES A HOMESTEAD EXEMPTION RIGHT NOW, THERE'S, OH, I'M READING IT BACKWARDS.
I GUESS THERE'S A MANDATORY SCHOOL DISTRICT, UH MM-HMM.
AND THEN THE SAN ANTONIO RIVER AUTHORITY ALSO OFFERS A HOMESTEAD EXEMPTION MM-HMM.
AND SO, I'M SORRY, THE COUNTY DOES NOT THEN.
AND THEN THERE, THERE 10% MAX, WHAT DO WE CALL THAT WHEN YOU CAN'T? UM, 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 SARAH, BUT NOT TO THE ACTUAL COUNTY RATE.
ANY ENTITY THAT HAS THE HOMESTEAD EXEMPTION THAT WOULD APPLY.
UM, SO, UH, I WANNA ASK, IN TERMS OF THE THANKS FOR SPLITTING THE TAX RATE INTO WHAT IS DEBT AND WHAT IS, UH, 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 AND M, BUT CAPITAL, I GUESS,
[01:10:01]
INTO DEBT? YEAH.ANYTHING THAT WE ISSUE THAT'S DEBT, WHETHER IT BE CERTIFICATES OF OBLIGATION, TAX NOTES, UM, GENERAL OBLIGATION BONDS, ANYTHING THAT'S GOT A PROPERTY TAX PLEDGE ON IT IS GONNA BE TIED TO THAT DEBT SERVICE TAX RATE OF 21 CENTS.
UM, SO IN, IN TERMS OF JUST, UH, GENERAL TAX RELIEF FOR THE PURPOSES OF, OF TODAY'S DISCUSSION, UM, WE CERTAINLY HAVE A DEMAND FOR IT FROM THE, FROM THE PUBLIC, UM, WITH THE ROLLBACK RATE, UH, LEGISLATION, AS WELL AS THE SCHOOL FINANCE REFORM BILL.
UH, 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, THE, UH, STATE PUT TOWARDS EDUCATION.
BUT I DON'T KNOW THAT I SAW ANALYSIS AROUND WHAT THE PROJECTED SAVINGS IS LIKE ON A, YOU KNOW, THE AVERAGE HOUSEHOLD OR BASED ON WHAT THE PROPERTY VALUE IS.
COUNCILMAN, I DON'T HAVE THAT IN FRONT OF ME.
AND I'M NOT SURE THE SCHOOL DISTRICTS HAVE FULLY CALCULATED EITHER.
AT LAST CHECK WHEN WE WERE HERE BEFORE YOU LAST WEEK, THEY HADN'T FULLY ANALYZED THOSE NUMBERS.
UM, IN, IN SHORT THOUGH, WHAT THE LEGISLATION DID WAS BUY DOWN LOCAL TAX RATES.
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 DOLLARS.
UH, SCHOOL DISTRICTS, LIKE CITIES AND COUNTIES COULD ALWAYS RAISE THEIR RATES AND, AND, UH, INCREASE THAT.
BUT, 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, I DON'T HAVE IN FRONT OF ME, BUT I CAN TRY TO FIND IT WHILE WE'RE IN THE ROOM HERE, COUNCILMAN, THAT'S SOMETHING WE CAN FOLLOW UP ON MM-HMM.
UM, AND, AND SEE IF WE CAN MINE SOME OF THAT WITH THE SCHOOL DISTRICTS AND GIVE IT TO YOU AND THE REST OF THE COUNCIL.
IT'D JUST BE GOOD TO, BEFORE WE COMMIT TO, TO THE RELIEF THAT WE'RE GONNA PROVIDE, I JUST WANNA KNOW WHAT CONTEXT IT IT LANDS IN.
'CAUSE WE ALSO WORKED VERY, OR YOU, JEFF WORKED VERY HARD ON, ON THE OTHER TYPES OF, OF RELIEF AS WELL.
AND, UH, I'M SORRY, BEN, WHAT DID YOU SAY? HOW MUCH DO WE ISSUE IN CERTIFICATES OF OBLIGATION ON A YEAR TO YEAR BASIS? UH, THAT'S GONNA VARY.
UM, THIS YEAR, OUR CERTIFICATES OF OBLIGATION, UM, I'M LOOKING AT THE STAFF MAYBE AROUND 60 MILLION THIS YEAR.
BALLPARK, IT'S ABOUT ABOUT 50 TO 60 MILLION THIS YEAR.
AND WHAT'S OUR, WHAT'S YOUR GUIDANCE ON HOW MUCH YOU ISSUE IN CERTIFICATES OF OBLIGATION? UH, THE BUDGET PLANNING PROCESS? SO AS WE LOOK AT THE CAPITAL BUDGET OVERALL, AND WE'RE LOOKING AT, YOU KNOW, WE HAVE FIVE YEAR GEO PROGRAMS BUILT IN EVERY FIVE YEARS MM-HMM.
SO IN BETWEEN THAT, THE NEED TO DO ADDITIONAL PROJECTS COMES OUT.
WE DO A LOT OF FACILITIES THROUGH CERTIFICATES OF OBLIGATION, UH, TAX NOTES.
WE DO SOME, UH, TECHNOLOGY PROJECTS THAT WAY.
UM, AND EVEN ON THE STREET SIDE, A LOT OF THE CEOS GO TOWARDS STREETS.
IT ACTUALLY IS HELPING US WITH OUR I M P PROGRAM.
SO NOT ALL THE 110 MILLION COMES OUT OF THE GENERAL FUND.
SOME OF THAT COMES OUT OF THE CAPITAL PRO, UH, CAPITAL BUDGET AND HAS BEEN FUNDED WITH BOTH COOS AND TAX NOTES.
AND WHEN WE DO THAT, WE DON'T, UM, 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 WE'LL 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, BUT HELPS US TAKE SOME OF THE PRESSURE OFF THE GENERAL FUND.
SO I WAS, I WAS WONDERING IF THAT'S SOMETHING WE COULD TURN TO, UM, WHEN O AND M IS LOW, THAT IS SOMETHING WE CERTAINLY CAN LOOK AT.
AND AS I MENTIONED WITH, WITH THE C P S ISSUE AND THE FACT THAT WE'RE $11 MILLION UNDER, WE'RE LOOKING AT THAT, WE'LL LOOK AT THAT, UM, DURING THE MONTH OF JULY, UM, AS WE UPDATE THE C P S FORECAST AND AS WE UPDATE THE DEBT PLAN, WE'LL LOOK AT AND SEE IS THERE SOMETHING WE CAN POTENTIALLY SHIFT SOME STREET MAINTENANCE INTO THE CAPITAL PLAN TO MAKE UP FOR THIS LOST C P S REVENUE, GIVEN THE FACT THAT IT'S MORE OF A, I I STILL THINK SOME OF THAT IS MORE OF A ONE-TIME ISSUE, HOPEFULLY, UM MM-HMM.
UM, CERTAINLY FUEL MAY STAY LOW FOR, IT DOESN'T LOOK LIKE THERE'S ANY INDICATION THAT'S GONNA COME UP GIVEN THE AMOUNT OF, UM, NATURAL GAS THAT'S BEING PRODUCED.
I DON'T KNOW WHETHER THAT'S GONNA MOVE MUCH, BUT CERTAINLY THE WEATHER.
AND WHEN WE ACTUALLY LOOK AT THE C P S FORECAST AND WE LOOK AT OUR BUDGET AND WHERE THE VARIANCES ARE, WE'RE TRYING TO LOOK AT IT BY COMPONENT, HOW MUCH OF IT IS WEATHER, HOW MUCH OF IT'S FUEL, HOW MUCH OF IT IS, UH, SALES THAT THEY'RE MAKING OFF SYSTEM SO THAT WE GET A BETTER UNDERSTANDING OF WHERE WE NEED TO ADJUST AND HOW THAT, UH, AFFECTS US GOING FORWARD.
SO, UH, THERE'S BEEN TALK OF A POTENTIAL C P S RATE INCREASE.
UH, ONE OF THEIR BOARD MEMBERS MENTIONED IT RECENTLY AFTER
[01:15:01]
REALIZING HOW MUCH REVENUE HAD BEEN LOST WITH THE CLOSURE OF ONE OF THOSE, UH, ONE OF THOSE COAL PLANTS.UM, CAN YOU REMIND ME, WHEN IT COMES TO SAWS, WE APPOINT A COMMITTEE TO ACTUALLY DO A RATE RECOMMENDATION OR A RATE REVIEW WHEN IT COMES TO C P SS, HOW IS THAT DEVELOPED? WELL, ON, ON THE SAW SIDE, YOU MAY BE REFERRING TO THE, TO THE IMPACT FEES.
THERE'S A 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 WANNA SPECIFICALLY STUDY THE RATE STRUCTURE.
SO IT'S A CITIZEN COMMITTEE TO GIVE THEM FEEDBACK ABOUT WHAT THAT STRUCTURE SHOULD LOOK LIKE.
UM, C P S HAS A CITIZENS, UM, ADVISORY COMMITTEE AS WELL THAT THEY WORK WITH THAT GIVES THEM INPUT.
BUT THE RATE CASE IS PRIMARILY DEVELOPED BY, UM, C P S, MUCH LIKE SAWS.
IF THEY WERE DEVELOPING A RATE CASE, IT'S GONNA BE THEIR STAFF WITH CONSULTANTS WITH INPUT FOR THEIR CI CITIZENS ADVISORY COMMITTEE, C P S SIMILARLY, BUT PROBABLY DOESN'T USE THE CITIZEN'S ADVISORY COMMITTEE QUITE AS MUCH.
UM, I'LL HAVE A LONGER CONVERSATION WITH YOU ABOUT THAT ONLINE.
IN TERMS OF WHAT FLEXIBILITY WE, WE HAVE HERE.
UM, I, I, UH, TEND TO AGREE WITH COUNCILWOMAN, UH, GONZALEZ ABOUT ALL THESE CHANGES HAPPENING AT THE, AT THE STATE AND, UM, KIND OF WATCHING AND, AND LOOKING AND SEEING WHAT HAPPENS BEFORE WE MAKE ANY DRASTIC CHANGES.
UM, THERE'S NO DOUBT THAT, THAT HOMEOWNERS ARE COMING TO US REQUESTING SOME KIND OF, OF RELIEF.
AND I HOPE THEY'RE GETTING SOME OF THAT THROUGH THOSE OTHER TWO MEASURES THAT HAVE PASSED AT THE STATE LEGISLATURE.
SO I THINK IT'LL BE IMPORTANT TO SEE WHAT THOSE BRING.
UM, I WOULD, UM, I WOULD CONSIDER AN INCREASE IN THE SENIOR, UM, HOME EXEMPTION AMOUNT, UH, UP FROM 65, UH, THOUSAND DOLLARS.
UH, BUT, BUT THE TRUTH OF THE MATTER IS THAT THE NEEDS THAT THE CITY HAS STILL AREN'T MET YET.
SO, I'VE KNOW I'VE HAD THIS CONVERSATION WITH SOME OF YOU, BUT WHEN WE TALK ABOUT DRAINAGE NEEDS IN, IN DISTRICT SEVEN AND DISTRICT THREE HAS SOME OF THE SAME, UM, WE'RE TALKING ABOUT A LIFETIME OF CAPITAL WORK THAT NEEDS TO BE DONE BEFORE WE MEET THE NEEDS OF BASIC INFRASTRUCTURE IN THAT, IN THAT DISTRICT.
SO WHEN WE TALK ABOUT GIVING TAX BREAKS TO, TO PEOPLE WHO LIVE IN HOMES, THAT MAY BE MORE THAN 200,000 OR 300,000 OR 400,000, I, IT'S, IT'S JUST TOUGH FOR ME TO SAY, SURE, I'LL WAIT, YOU KNOW, 120 YEARS FOR THE DRAINAGE PROJECT IN DISTRICT SEVEN TO, TO BE DONE.
UM, I DON'T, I I DON'T THINK I CAN DO THAT.
UM, ALSO IN TERMS OF, UH, TAX RELIEF, WE KNOW IT'S NOT JUST HITTING OUR HOMEOWNERS, UH, WHO, YOU KNOW, BY THE GRACE OF GOD HAVE A HOME, BUT WE HAVE A NUMBER OF RENTERS WHO HAVE NEVER BEEN ABLE TO, TO PURCHASE A HOME.
AND, YOU KNOW, I DID THE TOUR OF HAVEN FOR HOPE, UH, JUST A COUPLE WEEKS AGO.
AND THEY MENTIONED TO US THAT THEY'RE HAVING, UM, A NOT JUST INDIVIDUALS COMING THERE, BUT A BIG SPIKE IN FAMILIES THAT ARE COMING TO HAVEN FOR HOPE.
AND THE, THE THINKING OR, OR THE RATIONALE IS PROBABLY THAT IT'S FAMILIES THAT ARE BEING EVICTED FROM APARTMENTS OR, OR WHEREVER THEY'RE RENTING AND AREN'T ABLE TO TAKE THE INCREASE IN, IN PROPERTY TAX AT, I IMAGINE IT'S DUE THE PROPERTY TAXES, BUT BASICALLY IT'S HOME.
PEOPLE WHO CAN'T PAY AN INCREASE IN RENT, UH, AN UNPREDICTABLE INCREASE IN RENT FROM, FROM YEAR TO YEAR.
UM, 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 IN ENCAMPMENT.
SO I, I THINK THE RELIEF ISN'T JUST ABOUT HOMEOWNERS, BUT IT'S ABOUT THE PEOPLE WHO LIVE IN SAN ANTONIO.
AND, UH, JUST THE HOMESTEAD EXEMPTION ALONE ISN'T GOING TO HELP THEM.
SO I'D JUST 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, UH, FOR, FOR HOMEOWNERS.
SO I DON'T WANNA LOSE, UH, LOSE SIGHT OF THAT.
UM, WE DID HAVE, UM, A FEW WORKSHOPS, I KNOW I KEEP TALKING ABOUT THIS TOO, UM, WORKSHOPS FOR HOW TO PROTEST YOUR PROPERTY TAXES MM-HMM.
UM, SO I HAVE BEEN AT ABOUT SEVEN OF THOSE WORKSHOPS AND HEARD THE LECTURE.
AND I KNOW SOME PEOPLE HERE HAVE, 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 AND DO THAT.
AND IT'S BASED ON SALES VALUES, WHICH, UM, YOU KNOW, WHEN A HOME IS BEING SOLD, THAT'S WHEN IT'S IN ITS BEST CONDITION, UH, FOR THE MOST PART.
SO IN TERMS OF PEOPLE WHO HAVE BEEN IN THEIR HOMES 20 OR 30 YEARS, IT'S NOT GONNA BE IN ITS BEST CONDITION.
AND REALLY, THOSE ARE THE PEOPLE WHO NEED OUR HELP
[01:20:01]
IN FIGHTING THAT APPRAISAL OR BRINGING A MORE ACCURATE PICTURE FOR AN, A MORE ACCURATE APPRAISAL.IT'S, IT'S NOT EVEN SO MUCH A FIGHT, BUT IT'S BASICALLY GIVING BE HAD THE INFORMATION IT NEEDS TO MAKE A MORE APPROPRIATE ADJUSTMENT.
UM, SO I WOULD, IN TERMS OF PROPERTY TAX RELIEF, I THINK THAT'S ANOTHER AVENUE, UM, THAT WE CAN, THAT WE CAN CONSIDER.
CERTAINLY MY OFFICE WILL CONTINUE, UH, TO, TO DO THAT.
BUT, UH, ERIC, IF WE WANNA CONSIDER HAVING THAT BE SOMETHING MAYBE A LITTLE BIT MORE STANDARD THAT, THAT WE OFFER, UM, AND I THINK I WILL STOP THERE, BUT THANK YOU.
THANK YOU VERY MUCH, BEN AND EVERYONE.
UH, COUNCILMAN, I, I WAS JUST GONNA MENTION THAT, AND I THINK COUNCILMAN TREVINO ASKED THIS MAYBE DURING THE FORECAST MEETING, OR MAYBE IT WAS BEFORE ONE OF OUR PROPERTY TAX SESSIONS.
YOU KNOW, WE'VE GOT THIS 8 65, UH, EXEMPTION AND A SENIOR FREEZE, UM, AND BARE APPRAISAL DISTRICT WHEN, WHEN YOU, UM, SIGN UP FOR YOUR HOMESTEAD TODAY, THEY'RE COLLECTING, UH, BIRTHDATE INFORMATION SO THEY KNOW FOR THOSE NEW PEOPLE COMING ONLINE WHEN THEY'RE GONNA 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 ROLE, BUT WE WANNA HAVE MORE CONVERSATION WITH THEM ABOUT, UM, USING DATA WE HAVE, UM, THROUGH 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.
THAT'S WHAT WE'RE FINDING IN SOME OF OUR WORKSHOPS IF PEOPLE DON'T HAVE THEIR BASIC, UH, EXEMPTION.
SO I THINK THAT, UM, THAT C C R AND THAT INITIATIVE THAT THE COUNCILMAN PUT FORWARD IS A, IS A GREAT WAY TO, TO MOVE TOWARD THAT.
UM, DO YOU HAVE SOME QUESTIONS HERE FOR YOU? SLIDE, UH, SLIDE THREE.
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, UH, 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, UH, YOU CONSIDER TO BE A HIGH PRIORITY, WE'VE GOT DOLLARS THAT WE CAN GO ACCESS.
AND IT COULD, I MEAN, AGAIN, IT'S A MILLION DOLLARS ON THE GENERAL FUND.
IT'S NOT GONNA BE ANYTHING LARGE, BUT TO THE EXTENT SOME, 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 1 MILLION AND THE 3 MILLION? SOMETHING ASK MARIA MAYBE TO HELP ME WITH THAT ONE, OR HOW MUCH HAVE WE SPENT OVER THE LAST SEVERAL YEARS? SURE.
UM, COUNCILMAN, UH, JUST FOR, UH, CONTEXT, THIS FISCAL YEAR 2019, WHEN WE PRESENTED THE RECOMMENDED MID-YEAR BUDGET ADJUSTMENT TO THE COUNCIL, WE HAD, UH, ROUGHLY ABOUT $2.4 MILLION WAS APPROVED IN THE CAPITAL BUDGET APPROVED BY COUNCIL FOR HEAVEN FOR HOPE.
SO THAT THAT'S HOW WE USE THE, THE CONTINGENCY, THE BUDGET DID NOT INCLUDE THE ENTIRE 3 MILLION.
THAT IS A TARGET THAT WE HAVE, BUT WE, WHAT WE BUDGETED AND THE ADOPTED BUDGET WAS 2.4, AND THAT WAS USED FOR HEAVEN FOR HOPE AND THE OPERATING, UH, BUDGET, WHICH IS THE GENERAL FUND IN THE PAST, THAT HAS BEEN USED AS PART OF THE MID-YEAR ADJUSTMENT.
UH, THIS YEAR WE UTILIZED A PORTION OF THAT, UM, EXAMPLE THAT COMES TO MIND IS THE, UH, THE MIGRANT RESOURCE CENTER.
WE DID $141,000, AND THEN WE HAD OTHER, UM, ADJUSTMENTS.
SO AS WELL, UH, IN, IN THE GENERAL FUND, IF THE DOLLARS ARE NOT USED, THEY ARE RELEASED WHEN WE DO THE, UM, 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, UH, LESS THAN TWO MONTHS RESERVE THAT WE MAINTAIN.
AND THAT IS THERE, UM, YOU KNOW, IN THE, UH, IN THE EVENT OF SOME KIND OF CATASTROPHIC ISSUE, THAT'S OUR RESERVE.
SO THAT'S REALLY A CONTINGENCY, UH, MORE FOR CATASTROPHIC TYPE ISSUES, BUT IT'S STILL A CONTINGENCY.
IT'S A RESERVE FUND MORE, NOT A CONTINGENCY, BUT MORE RESERVE FUND.
I'M JUST TRYING TO SAY, WHY DO WE SPLIT THAT? WHY, WHY DON'T WE COMBINE ALL 4 MILLION INTO THE, UH, 15%? WHY DO WE HAVE TWO SEPARATE CATEGORIES THERE? SO THE ENDING BALANCE IS, UM, IT'S MORE OF A RESERVE.
IT'S, IT'S THE FUND BALANCE LEFT.
AT THE END OF THE DAY, WE'RE GONNA RESERVE
[01:25:01]
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 THAT YOU WANT TO DO DURING THE YEAR.
SO THEY'RE KIND OF, THEY'RE KIND OF SEPARATE.
I'LL SEPARATE, I'LL TALK A LITTLE BIT MORE WITH YOU ABOUT THAT.
I'M NOT SURE WHY WE KEEP SHOWING THIS ABOUT BEING DOWNGRADED, YOU KNOW, AND WHAT THE IMPACTS ARE GONNA BE.
ARE WE, HAVE WE BEEN APPROACHED BY THE RATING AGENCY SAYING WE'RE THINKING ABOUT DOWNGRADING YOU? I, I, I, 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 IT, AA PLUS, BUT THE OTHER TWO ARE, ARE FINE.
AS FAR AS I KNOW, AND I'M NOT SURE WHY WE KEEP, TO ME THIS IS LIKE A, 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.
THEY'RE, WE'RE UNDER CONSTANT EVALUATION.
AND SO, AS THEY EVALUATE US, WE'VE HAD SOME BIG SHIFTS HERE.
I MEAN, SB TWO IS A BIG FUNDAMENTAL SHIFT IN TERMS OF HOW LOCAL GOVERNMENTS IN TEXAS ARE GONNA MANAGE THEIR BUDGETS.
SO THERE'S CERTAINLY GONNA BE PRESSURE, BOTH TWO OF THE RATING AGENCIES HAVE ALREADY PUT OUT NOTICES ABOUT HOW THEY VIEW THAT MOODY'S SAYING 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, UM, WE'RE ALWAYS UNDER THAT SCRUTINY.
AND, YOU KNOW, WITH, WITH, UH, 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, UM, SO I GET ASKED THIS QUESTION A LOT.
THEY'RE LOOKING AT WHERE ARE YOU AT TODAY? WHAT'S YOUR FINANCIAL POSITION LOOK, LOOK LIKE.
BUT THEY'RE ALSO TRYING TO LOOK AT HOW YOU MANAGE THINGS, BECAUSE PEOPLE THAT BUY OUR BONDS ARE GONNA 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 THEY RUN THEIR SCENARIOS WHEN THEY'RE LOOKING AT US.
BUT HOW LONG HAVE YOU HAD OUR AAA RATING NOW? UH, NINE YEARS, I BELIEVE.
AND Y'ALL DID AN EXCELLENT JOB DEFENDING THAT.
I, I GUESS I'M JUST, YOU KNOW, WE KEEP THROWING THAT UP THERE THAT, HEY, THIS MAY HAPPEN.
YOU KNOW, AND IT KIND OF PUTS A DAMPER ON, YOU KNOW, WHAT OUR EXPECTATIONS ARE AND WHAT WE SHOULD BE PLANNING FOR.
I DON'T THINK WE SHOULD BE PLANNING FOR A LOWER, UH, UH, GRADE RATING BECAUSE WE ARE DOING OUR JOB AND MEETING OUR, AND HAVING A BALANCED BUDGET.
WE'RE MEETING, MEETING THE, UH, UH, BUDGET REQUIREMENTS AND THE JOB THAT Y'ALL ARE DOING, SHOWING HOW WE'RE MANAGING OUR, OUR BUDGET HERE IN SAN ANTONIO.
SO, I'M, I, I'M JUST SAYING FROM A, FROM A OPTICS PERSPECTIVE, I DON'T UNDERSTAND WHY WE KEEP SHOWING THIS AS A POTENTIAL GLOOM AND DOOM, UH, ABOUT OUR BUDGETING AND RATING AGENCIES HERE.
AND, YOU KNOW, THAT'S, THAT'S JUST MY OWN COMMENTS ABOUT THAT.
SO PART OF THAT IS, UM, WHEN WE GO IN AND WE MEET WITH THEM AGAIN, THE, THE FINANCIAL PARAMETERS HAVE SHIFTED FOR US THINGS LIKE SB TWO, I MEAN, ONE OF THE THINGS THEY'RE GONNA BE LOOKING AT AND EVALUATING, NOT ONLY FOR US, THEY'RE GONNA 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, UM, HAVEN'T HELD THE TAX RATE CONSTANT.
THEY'VE BEEN GOING TO THE ROLLBACK RATE OR CLOSER TO THE ROLLBACK RATE FOR THEM, IT'S GONNA BE A BIGGER IMPACT AND MORE OF AN ADJUSTMENT.
BUT I GUESS GUESS THE POINT IN PUTTING THIS UP HERE WAS THAT THERE IS RISK TO THE RATING.
THERE'S PRESSURE ON THE RATING TODAY FOR SURE.
WELL, THERE'S ALWAYS GONNA BE THAT BENS, THERE'S ALWAYS GONNA BE THAT.
I, I WOULD SAY OUTTA THE NINE YEARS I'VE BEEN DOING THIS, THIS IS THE MOST PRESSURE THAT'S BEEN ON THIS RATING FOR SURE.
UH, I DON'T THINK THERE'S ANY QUESTION ABOUT THAT.
UM, PART OF THE CONVERSATION WAS TO TALK ABOUT, UM, 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 THREE POINT A HALF PERCENT THAT WE'RE GONNA LOOK AT OUR BUDGET PRIORITIES, WE'RE GONNA LOOK AT OUR SERVICE DELIVERY, AND WE'RE GONNA WEIGH ALL OF THAT AND MAKE DECISIONS FROM THAT STANDPOINT.
THAT'S A DEVIATION FROM THE PAST.
'CAUSE AGAIN, IN THE PAST, AGAIN, WE'VE SAID WE'RE GONNA HOLD THE TAX RATE AND WE'RE JUST GONNA LIVE WITH IT.
AND WHEN OUR PROPERTY TAX REVENUES FALL, WE'LL JUST MAKE ADJUSTMENTS IN THE BUDGET AND THEN WE'LL RECOVER.
WELL, THE STATE'S THAT DYNAMIC, THERE IS NO RECOVERY.
SO THAT THE, THE PART OF THIS WAS JUST TO SAY,
[01:30:01]
KEEP IN MIND THAT IF IT CHANGES AND HAVING STRONG FINANCIAL POLICIES HELPS, HELPS US STAY THERE, THERE'S NOT A GUARANTEE.'CAUSE THERE'S A LOT THAT'S OUTSIDE OF OUR CONTROL THAT RIGHT.
UM, BUT FOR THE THINGS THAT WE CAN CONTROL, IT PUTS US IN A BETTER POSITION TO MAINTAIN, HOPEFULLY MAINTAIN THAT RATING, AND THEN, UM, AVOID THESE KINDS OF IMPACTS.
UM, LET'S GO TO THE NEXT, NEXT BRIEFING HERE.
UM, AS YOU KNOW, I'VE BEEN 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, UH, CONCERNS WERE GIVEN TO THEM BY THEIR, BY THEIR NEIGHBORS AND CONSTITUENTS.
UH, BUT IT HAS 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, I, I HAVE TO SAY THAT WE DO HAVE THAT 20% OF THAT TAX BILL THAT WE ARE, THAT WE CAN CHANGE ON GIVING A HOME STATE EXEMPTION.
AND PEOPLE, PEOPLE ARE REALLY, REALLY CLAMORING FOR THAT.
UH, IF YOU GO TO, UH, SLIDE FIVE, YOU KNOW, THERE'S BEEN TALK ABOUT, UH, IS THAT SLIDE FIVE? IT COULD BE AT THE OTHER PRESENTATION.
IF YOU LOOK AT THAT, THE VAST MAJORITY OF OF HOMES THAT A HOME STATE EXEMPTION WOULD, UM, IMPACT WOULD BE THAT LESS THAN 20 YEARS.
THE, THE 21 TO 30 YEARS OR 30 YEARS AND ABOVE YOU, YOU HAVE THE, THE MAJORITY OF THOSE THAT ARE ACTUALLY BEING COVERED BY AN OVER 65 OR DISABLED, UM, TAX RELIEF AND ANTIFREEZE.
SO THE VAST MAJORITY OF PEOPLE THAT ARE CLAMORING FOR THIS, UH, TAX RELIEF ARE THOSE THAT ARE, UH, 20 AND BELOW, AND THAT'S 116,000 HOUSEHOLDS THAT A HOMESTEAD WOULD EXEMPTION WOULD IMPACT, UM, AND PROVIDE SOME OF THAT RELIEF.
AND A HOMESTEAD EXEMPTION DOESN'T JUST APPLY TO THE, UM, UM, BASE HOME HOME OWNERSHIP.
IT ALSO WOULD APPLY TO THE DISABLED AND OVER 65, WOULD IT NOT? YES, IT APPLIES TO EVERY HOMESTEAD.
SO IT DOESN'T MATTER IF IT'S FROZEN OR NOT, IT APPLIES EVERY HOMESTEAD.
SO THE DISABLED AND OVER 65, THEY WOULD GET A, A HOMESTEAD EXEMPTION ALSO.
SO THIS ISN'T JUST TARGETED FOR THOSE THAT ARE LESS THAN 65 OR DISABLED.
SO THEY WOULD GET A, THEY WOULD GET A BREAK ALSO.
UM, SO I JUST WANTED TO DRAW EVERYBODY'S ATTENTION TO IT.
THE VAST MAJORITY OF PEOPLE THAT WOULD, UH, 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.
UM, THE, THE TABLE, AND I DON'T HAVE IT LISTED HERE, THE TABLE, IT ACTUALLY SHOWS A DIFFERENT PERCENTAGES.
AGAIN, WHICH TABLE IS THAT? SLIDE 12, THIS ONE ON THE HOMESTEAD EXEMPTION, YES.
AND IF YOU LOOK AT THAT, UM, OVER THE LAST SEVERAL YEARS, WE'VE, IF WE LOOKED AT OUR BUDGET, WE HAVE BEEN ABLE TO AFFORD, WE COULD HAVE AFFORDED A 5% EXEMPTION BASED ON CARRYOVERS AND EXTRA THINGS THAT WE FUNDED DURING THE MIDYEAR REVIEW.
AND, UM, 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, UH, NOT JUST THOSE THAT ARE BELOW THE 65 AND ARE NOT DISABLED.
SO, UM, I, I WOULD STILL LIKE TO SEE THAT AS, YOU KNOW, A GOAL OR A TARGET TO HELP WITH THE TAX BILLS THAT PEOPLE ARE ASKING FOR TIME YEAR AFTER YEAR AFTER YEAR HERE FROM THE CITY.
[01:35:01]
SO, UM, I'M, I THINK, I THINK WE'RE ON TARGET HERE, AND I'M GLAD TO HEAR THE MAYOR, UM, TALKING ABOUT THAT AS WELL.THAT, YOU KNOW, THAT'S TO BE RECOGNIZED HERE IN THIS CITY THAT THAT'S BEEN ASKED FOR, AT LEAST IN MY TWO ELECTIONS, THAT PEOPLE ARE REALLY WANTING TO SEE A HOMESTEAD EXEMPTION.
YEAH, I, I JUST WANNA REMIND PEOPLE ABOUT WHAT IT SHOWS RIGHT UP HERE ON THE BOARD.
IF THERE'S A 10% EXEMPTION, IF WE WERE TO RAISE THE 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, OF OUR POPULATION, AS OPPOSED TO A, A LONGER, LARGER, GREATER TERM GAIN FOR MUCH LARGER AMOUNT OF OUR POPULATION.
SO I JUST WANTED TO PUT THAT IN FOR CONSIDERATION.
UH, BEN, I, I HAVE, UH, I, I ALSO HEAR QUITE OFTEN FROM MY CONSTITUENTS, YOU KNOW, I, 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, UM, THAT, THAT CONVERSATION IS, UH, IT IS REALLY INTERESTING, RIGHT? BECAUSE THEN PEOPLE SAY, WAIT A SECOND, NOBODY'S EVER EXPLAINED IT TO THAT ME THAT WAY.
I THOUGHT YOU GUYS RAN BEXAR COUNTY APPRAISAL DISTRICT, AND I THOUGHT THAT YOU GUYS WERE IN CHARGE OF, YOU KNOW, CARLOS, I'M SORRY, UH, NOT CARLOS, ALBERT, RUSTY.
AND, UH, ALL OF YOU KNOW THAT PRETTY MUCH EVERYTHING THAT HAPPENS TO ME WITH REGARDS TO TAXES IS YOU GUYS, AND IT'S NOT TRUE.
AND SO WE, WE HAVE THAT CONVERSATION AND IT'S ON US AS LEADERS TO EDUCATE, YOU KNOW, OUR, THE PUBLIC AS FAR AS WHAT, HOW THE MECHANICS OF THIS THING WORKS, RIGHT? UM, AND THAT'S SOMETHING THAT WE DO QUITE OFTEN.
AND, AND, UH, COUNCILWOMAN SANDOVAL, UM, SEVEN TIMES, UH, HAS DONE THESE, YOU KNOW, PROTESTS, UH, CLINICS AND ALL THAT.
AND I HEAR THEY'RE VERY EFFECTIVE.
AND IT'S, IT'S REALLY IMPORTANT WORK THAT WE GIVE AS MANY TOOLS TO THE PUBLIC, BUT THAT WE ALSO SET EXPECTATIONS AND THAT WE GIVE THEM, YOU KNOW, TRANSPARENT AND ACCURATE INFORMATION.
SO, I'M TRYING TO ANSWER THE QUESTION THAT'S ASKED OF ME OFTEN, WHICH IS, LET'S SAY YOU GAVE ME A 10%, UH, YOU KNOW, HOMESTEAD EXEMPTION.
HOW MUCH MONEY WOULD I SAVE AT THE END OF THE YEAR? AND I, I THINK YOU DID THAT ANALYSIS FOR US, BUT WHAT IS THE DOLLAR AMOUNT THAT THE AVERAGE SAN ANTONIO TAXPAYER SAVES? SO UNDER THE 10% EXEMPTION OPTION, YEAH.
THE AVERAGE HOMESTEAD IS $178,000 HERE ON THIS SLIDE.
UM, THE AVERAGE SAVINGS FOR THEM ANNUAL SAVINGS WOULD BE A HUNDRED DOLLARS.
SO A HUNDRED DOLLARS OVER A YEAR, RIGHT? RIGHT.
UM, 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, THE, YOU KNOW, THE LOOK ON A LOT OF MY CONSTITUENTS FACES IS KIND OF ONE OF BEING DEFLATED.
THEY'RE LIKE, WAIT A SECOND, THAT, THAT DOESN'T SOUND LIKE AUTHENTIC OR GENUINE TAX RELIEF, RIGHT? MM-HMM.
AND THE REASON IT DOESN'T SOUND THAT WAY TO THEM IS BECAUSE THEY'RE SMART.
'CAUSE IT'S NOT AUTHENTIC AND GENUINE TAX RELIEF.
UH, AND I, I'M, I, WHILE I CELEBRATE THE OPPORTUNITY TO DO A HOMESTEAD EXEMPTION, AND THAT'S FINE.
UM, 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 SAID, WE GOT YOU A TAX EXEMPTION ONLY FOR THEM TO COME BACK NEXT YEAR AND SAY, WAIT A SECOND, B C A JUST SENT ME THIS LOVE LETTER AND IT JUST WASHED AWAY THIS A HUNDRED DOLLARS SAVINGS.
UM, AND YOU GUYS TOOK A INAUTHENTIC, UH, 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 OKAY.
AGAIN, THAT'S A SMALLER POPULATION UHHUH, UM, THAT ONE HAS A LITTLE BIT OF A DIFFERENT IMPACT BECAUSE THEY'RE ALREADY FROZEN.
SO ONCE THEY HIT 65, WE RECALCULATE THE TAX BILL THAT'S FROZEN.
SO IF YOU DECIDE TO INCREASE THAT EXEMPTION, IT JUST LOWERS THAT AMOUNT.
BUT THEY'RE, ONCE THEY GET TO 65, THEY'RE NOT EXPERIENCING MAYBE WHAT OTHER HOMEOWNERS ARE EXPERIENCING WHERE YOU'RE HAVING VALUE CHANGES AND, AND MY BILL'S GOING UP, THEIR BILL'S FROZEN.
IT CAN'T GO UP, REGARDLESS IF THE HOME GOES UP BY 10%, THE VALUE THAT THAT TAX BILL IS FROZEN.
IT'S REALLY THE HOMESTEAD EXEMPTION, THE OVER 65 EXEMPTION, THE DISABLED EXEMPTION.
I MEAN, I, I, I THINK IT'S ALSO IMPORTANT FOR US TO KNOW WHAT TOOLS OH, PROPERTY TAX REDUCTION, IF YOU WANTED TO DO THAT, WHICH WE HAD ON THE LIST SO WE COULD, WE COULD DROP OUR RATE, RIGHT?
[01:40:01]
RIGHT.AND, AND I THINK THE, THE NEW REALITIES COUNCILMEN IS THAT EVERY YEAR WE'RE OVER 3.5%.
YOU'RE GONNA BE DROPPING THE RATE.
SO THE, UH, THE A HUNDRED DOLLARS ANNUAL SAVINGS FOR THE HOMESTEAD EXEMPTION EXAMPLE THAT WE JUST WENT THROUGH MM-HMM.
THE $9 MILLION IN THE DEBT SERVICE, REMEMBER, THAT'S, UH, AN ANNUAL AMOUNT THAT WE'VE APPLIED TOWARDS DEBT SERVICE.
SO YOU'RE TALKING ABOUT, I DON'T KNOW, PROBABLY WELL OVER A HUNDRED MILLION DOLLARS IN CAPACITY.
SO WHAT WORRIES ME IS THAT OVER THE LAST TWO BUDGET CYCLES, UH, WE DID THE MATH IN MY OFFICE, WE BROUGHT HOME, UH, AND BY BRING HOME, I MEAN, WE BROUGHT BACK TO DISTRICT EIGHT, ABOUT $13.6 MILLION IN ADDITIONAL, UH, POLICE HEADCOUNT, UH, FIRE HEADCOUNT AND EQUIPMENT AND FACILITIES FOR FIRE AND POLICE.
UM, YOU KNOW, HAVING TO GO BACK AND SAY, LOOK, IN EXCHANGE FOR YOUR A HUNDRED DOLLARS A YEAR, WE WOULD'VE HAD TO FIGURE OUT HOW TO EITHER NOT DO THAT AND CONTINUE TO DELIVER THE SERVICES, RIGHT.
OR CUT SERVICES FROM SOME OTHER PLACES IN ORDER TO CONTINUE THE INVESTMENT THAT WE MADE.
RIGHT? BECAUSE I DO ASK THE FOLKS, UM, WOULD YOU BE OKAY WITH ME NOT BRINGING HOME THAT AMOUNT, YOU KNOW, IN THE NEXT BUDGET CYCLE? AND MOST OF 'EM SAY, ARE YOU CRAZY? RIGHT? I WANT YOU TO BRING HOME MORE THAN $13.6 MILLION TO DISTRICT EIGHT, BUT DON'T CHARGE ME FOR IT.
RIGHT? AND THEN, UM, AND SO THAT'S, I MEAN, I GET IT.
I MEAN, THERE, THERE'S, TO THEM, IT MAKES MATHEMATICAL SENSE THAT WE TAX LESS, SPEND MORE, BUT REALLY DON'T SPEND MORE.
I MEAN, IT'S, THERE'S A WHOLE BUNCH OF MAGICAL THINKING GOING ON THERE.
AND, AND OUR JOB AS LEADERS IS TO ALSO HELP YOU HELP PEOPLE UNDERSTAND, YOU KNOW, HOW TAXATION WORKS.
I'M A TAXPAYER TOO, AND I HATE PAYING TAXES, RIGHT? AND I'M, I'M A BUSINESS OWNER AND I HATE PAYING TAXES.
BUT, YOU KNOW, WELCOME TO FIRST WORLD COUNTRY.
THIS IS HOW WE PAY FOR THINGS.
AND SO, UM, THE OTHER THING I WANNA LET YOU KNOW IS THAT I'M LOOKING AT THE PURPOSE OF THE FINANCIAL POLICIES MM-HMM.
UM, AND THE LAST POINT IS TO CONTRIBUTE TO THE CITY'S CREDIT PROFILE.
AND SO WHEN YOU DO SHOW US THE, UH, AAA BOND RATINGS EVERY SINGLE YEAR, UM, 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 CHOLESTEROL EVERY SINGLE YEAR.
AND JUST BECAUSE I'VE HAD IT FOR 44 YEARS DOESN'T MEAN THAT WE SHOULD JUST NOT CONTINUE CHECKING, RIGHT? MM-HMM.
UH, AND SO I, I, UH, I, I, I WANNA MAKE SURE THAT EVERY SINGLE TIME THAT YOU HAVE AN OPPORTUNITY TO REMIND US, YOU KNOW, WHAT OUR CREDIT SCORE IS, THAT WE EMBRACE THAT OPPORTUNITY AND WE HAVE A CONVERSATION ABOUT IT, THERE'S NOTHING WRONG WITH HAVING A, A CONVERSATION ABOUT HOW MAYBE IT'S OKAY FOR US TO DAMPEN ENTHUSIASM FOR OUR PROJECTS.
BECAUSE THAT'S THE POINT, THE POINT OF, UH, YOU KNOW, FISCAL LEADERSHIP IS TO MAKE SURE THAT, YOU KNOW, OUR EYES AREN'T BIGGER THAN OUR WALLET.
RIGHT? SO THANKS SO MUCH, MAYOR.
COUNCILMAN PLYS, COUNCILMAN HALL, AND THANK YOU MAYOR.
AND THIS IS FROM AN OUTGOING COUNCILMAN THAT WHOSE OPINION MAY NOT MATTER.
UM, BUT I DID WANNA, I WAS GONNA MAKE THIS POINT ANYWAY, BUT, BUT, UH, UH, COUNCILMAN PERRY KIND OF PRIDED THE, THE FIRE A LITTLE BIT AND, AND, UH, IT'S, IT'S ALONG WHAT COUNCILMAN ELIAS WAS SAYING AS WELL.
MY, MY, MY BACKGROUND WAS IN PUBLIC FINANCE, AND SO WE STRUCTURED BONDS, AND SO WE WERE VERY FAMILIAR WITH BOND RATINGS AND, AND THAT KIND OF THING.
AND SO, UH, I'M ONE OF THESE THAT, THAT IS OF THE OPINION THAT YOU, THAT THE BOND RATING IS SOMETHING THAT YOU PROTECT.
AND, UM, MY COMPLETE LENS, UM, WAS, WAS FIRST THE BOND RATING.
BECAUSE WHAT THE BOND RATING DOES IT, IT TELLS YOU, UH, FROM AN OUTSIDE ENTITY HOW WELL YOU'RE DOING YOUR, YOUR POLICIES, YOUR STRUCTURE AND ALL THAT KIND OF STUFF AS WELL.
BUT THE, THERE'S ALSO A FI A FISCAL IMPACT.
AND SO, YOU KNOW, JUST ONE LEVEL STEP, I THINK YOUR SLIDE SHOWED, UH, 17 TO $37 MILLION FISCAL IMPACT PER YEAR, UM, THAT COMES OUT OF THE BUDGET.
IF, IF, IF THE BOND RATING DROPS.
NOW, CERTAINLY WE GOT TWO OUTTA THREE THAT STILL KEEP US AT THE, AT THE AAA, BUT FOR ME, THAT'S, THAT'S THE LENS THAT I LOOKED AT AND I WOULD ENCOURAGE COUNCIL MEMBERS TO LOOK AT, UM, WHEN THEY'RE LOOKING AT THE BUDGET.
AND SO HOW DOES THAT TRANSLATE INTO, INTO POLICY AND PRACTICE? UM, AND THIS IS SOMETHING THAT I PERSONALLY DID WHEN I WAS ON COUNCIL, IS I WENT OUT TO, AND THIS WAS BEFORE WE HAD THE AAA BOND RATING.
I WENT OUT TO ALL, I THINK THE TOP FIVE, FIVE OR SEVEN OF THE, OF THE LARGE CITIES WITH AAA BOND RATINGS.
AND OF COURSE, BOND RATINGS LOOK AT LOTS OF DIFFERENT THINGS.
BUT THE TWO THINGS THAT WERE CONSISTENT FOR ALL FIVE OF THOSE, 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%.
UH, NOW THOSE ARE THE CITIES HAVE SOMETHING THAT WE, OR DON'T HAVE, SOMETHING THAT WE HAVE IN CITY IN SAN ANTONIO, WHICH IS
[01:45:01]
C P S.BUT FOR ME, THOSE TWO THINGS WERE WHAT WE IMPLEMENTED, UM, WHEN I WAS ON COUNCIL.
AND THE YEAR AFTER THAT, OUR BOND RATINGS SHOT UP TO, TO AAA.
AND SO MY MENTALITY AND MY SUGGESTION TO YOU ALL AS COUNCIL IS I WOULD PROTECT TWO THINGS APART FROM THE BOND RATINGS.
I'D PROTECT TWO THINGS, THE TWO YEAR BOND, UH, THE TWO YEAR BUDGET, AND THE CONSTANT ADDITION TO, TO THE RESERVE.
I THINK AT THAT POINT WE MIGHT'VE BEEN AT SEVEN OR 8%.
I'M GLAD TO SEE IT'S AT 15%, AND I WOULD ENCOURAGE US TO GET HIGHER THAN THAT MAY, UH, MAYOR SUGGESTED THIS MIGHT MIGHT NOT BE THE RIGHT TIME, AND HE'S PROBABLY RIGHT.
BUT I THINK MENTALLY, UH, WE AS A COUNCIL, 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, UH, I WOULD BE OPEN TO EXEMPTIONS.
I'M OPEN TO TAX CAPS AND ALL THIS STUFF THAT'S HAPPENING.
YOU'VE GOT, ALAMO COLLEGES GONNA BE MAKING A REQUEST.
YOU 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, UH, AND PLUS, THEN HEY, I'M ALL FOR IT.
BUT ANYTIME WE, UH, START TO, TO DIG INTO THAT, UH, RESERVE OR, UH, REDUCE FROM A TWO YEAR BUDGET, THEN AT THAT POINT, I THINK YOU'RE, YOU'RE HAVING PROBLEMS. UM, NOW, NOW THAT SAID, UH, WHEN WE THINK ABOUT THE, WHAT WAS I GONNA SAY? RIGHT NOW, WE GIVE UP $52 MILLION, UH, $52 MILLION A YEAR BECAUSE OF UNDER, UNDER CURRENT POLICY AND EXEMPTIONS.
AND SO IF WE INCREASE THAT, THAT'S GONNA INCREASE THAT 1550 $2 MILLION TO SOMETHING, DEPENDING ON WHAT YOU ALL DO AS A COUNCIL.
AND WHEN YOU DO THAT AND, AND, UH, YOU KNOW, INCREASE THAT EXPENSE TO THE BUDGET, YOU'VE GOTTA CUT FROM SOMEWHERE.
SO JUST KNOW THAT IN ORDER TO BE ABLE TO KEEP YOUR TWO YEAR BUDGET AND TO BE ABLE TO KEEP YOUR 15% RESERVE, UH, YOU MAY HAVE TO CUT INTO OTHER AREAS.
AND GOING BACK TO COUNCILWOMAN SANDOVAL'S POINT, YOU KNOW, THOSE MAY BE STREETS, THAT MAY BE DRAINAGE, THAT MAY BE OTHER THINGS.
UM, BUT AT THE END OF THE DAY, THERE'S GOTTA BE A CONSTANT BALANCE.
AND, UH, IT'S OKAY TO SUPPORT REVENUE REDUCTION, UH, ITEMS, BUT YOU ALSO GOTTA BE ABLE TO SUPPORT COST REDUCTION ITEMS IN ORDER, IN ORDER TO BE ABLE TO KEEP WHAT I BELIEVE ARE THE TWO CRITICAL THINGS TO, TO, TO FINANCIAL HEALTH AND POTENTIALLY AAA BOND RATING, WHICH IS THE TWO YEAR BUDGET AND THE, AND THE RESERVE.
AND, UH, BEN, YOU'VE BEEN REALLY WONDERFUL IN, IN THE WAY THAT YOU'VE BEEN PRESENTING THIS, BECAUSE I THINK YOU'VE DONE IT IN A WAY THAT IS BOTH, UM, SOBERING TO POLICY MAKERS WHO HAVE BEEN HERE FOR A WHILE AND EYE-OPENING TO, TO THOSE INDIVIDUALS WHO ARE COMING THROUGH AS NEW COUNCIL MEMBERS.
AND EACH TIME YOU, YOU'VE SORT OF REMINDED US THAT WE DIDN'T GET HERE BY ACCIDENT.
AND A GOOD EXAMPLE OF THAT IS IF YOU TRACK THE CITY'S, UH, UH, AAA RATING, AND WHEN WE DIDN'T HAVE OUR AAA RATING, IF YOU TRACK, UH, TO, TO COUNCILMAN HALLS POINT BACK IN 2003, 2005 ISH, WE STARTED ADDING MORE TO OUR RESERVE.
UM, YOU KNOW, WE STARTED GETTING BETTER RATINGS AS A, AS A, AS A CITY.
AND SO THOSE THINGS DON'T HAPPEN BY ACCIDENT.
THEY'RE, THEY'RE IMPORTANT DECISIONS.
AND JUST THAT EASILY, I THINK WE CAN TAKE THEM FOR GRANTED AND SAY, OH, MAYBE 15% IS NOT THAT BIG OF A DEAL.
IT'S MOVE IT BACK DOWN TO 14 AND LOOK, IF IT, IF THE FORMULA HASN'T, UH, YOU KNOW, PROVEN ITSELF TO BE BROKEN AT THIS POINT, I THINK WE SHOULD CONTINUE, UH, WITH THESE VERY PRUDENT CONSERVATIVE WAYS TO MANAGE OUR BUDGET.
AND I'M GRATEFUL THAT YOU'VE, YOU'VE GIVEN US SOME OF THAT.
NOW, UH, I JUST WANNA POINT TO ONE OR TWO SLIDES, 10 AND 11, BECAUSE I WANT TO, I WANT TO MIRROR BACK WHAT I THINK YOU TOLD ME AND, AND MAKE SURE THAT I'VE GOT THIS RIGHT.
SO IN 1994, WHERE WE WERE AT A 59, UH, UH, UH, IS IT, DO I CALL THAT AT 59 CENT OR 50 59 CENT? YES.
UH, FOR THAT, FOR THAT SAME EFFORT, UH, WE WERE PROBABLY GETTING LESS THAN WHAT WE'RE GETTING CURRENTLY AT A, AT A LOWER RATE AT 55.
UM, WHAT, WHAT YOU TOLD ME IS THAT WE'RE GONNA CONTINUE TO MOVE, MOVE DOWN IN THIS TREND SO THAT THE CITY TAXPAYER WHO RECEIVES THEIR BILL IS GONNA SEE NOT A 55.8, THEY'RE GONNA SEE A 50 54 OR 53, MAYBE NOT BY OUR CHOOSING.
YOU'RE SAYING THAT THAT DECISION NOW IS BEING FORCED UPON BY THE STATE.
RIGHT? SO BEFORE, UNDER CURRENT LAW, YOU GOT AN 8% ROLLBACK RATE.
SO WE COULD HOLD THIS RATE AS BASE VALUES ARE GROWING, AS LONG AS WE DIDN'T EXCEED X 8%.
WE DID A COUPLE YEARS AND WE ROLLED IT BACK TO THE 8% AND WE PUT IT THERE.
WHEN THEY LOWER IT TO THREE AND A HALF, IT LOOKS MORE LIKE SLIDE 13.
SO THIS IS THE SAME, THIS IS THE LAST FIVE YEARS.
THAT LAST COLUMN IS WHAT THE TAX RATE WOULD'VE BEEN, HAD THE 3.5% CAP BEEN IN PLACE.
[01:50:01]
SO IT WOULD'VE ACTUALLY, INSTEAD OF THIS YEAR, ADOPTING A TAX RATE OF A LITTLE OVER 34.60 CENTS, WE'D BE AT 31 CENTS.AND THIS, THIS LOWERING OF THE TAX RATE WOULD'VE HAD TO HAVE HAPPENED UNLESS YOU WERE WILLING TO CALL AN ELECTION TO CALL FOR AN INCREASE IN THE TAX RATE.
OKAY? NOW, SO THAT'S THE DYNAMIC THAT'S CHANGED IS THAT I THINK WE LOWERED IT SEVEN, SEVEN TIMES OVER THAT ON THAT PREVIOUS SLIDE.
ANY YEAR WE'RE OVER THREE AND A HALF PERCENT OF GROWTH, THE TAX RATE'S GONNA COME DOWN.
NOW, PLEASE TAKE ME THROUGH THIS VERY SAME EXERCISE, BUT DON'T USE 2015 TO 2019.
WHAT IF YOU WERE TO USE 2010 TO 2014? BECAUSE THOSE, AT THE BEGINNING HALF OF THAT, OF THIS DECADE, IT WAS A RECESSION.
AND IF YOU ARE, IF SOMEBODY WHO FOLLOWS THE MARKET, SOMEBODY WHO READS A NEWSPAPER, YOU'LL KNOW THAT A RECESSION IS, UM, IS POTENTIALLY LIKELY IN THE NEXT DECADE.
RIGHT? UH, SO WHAT YOU, WHAT YOU, WHAT YOU'RE GONNA BE FACED WITH, YOU KNOW, FUTURE COUNCILS IS A YEARS THAT LOOK MORE LIKE 2010 TO 2014.
NOW WHAT, WHAT, IN THAT CASE, WE COULD KEEP OUR TAX RATE AS LONG AS IT DOESN'T GO ABOVE 3.5%.
WITH THE SAME EXERCISE, SAME CONCEPT AS THE 8%, WHAT YOU JUST SAID.
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 THAT YOU ACTUALLY RAISE IT IN SOME OF THOSE YEARS.
AND, AND WE HAD THIS CONVERSATION AS WE WERE UP HERE TALKING WITH THE STATE ABOUT, UM, SB TWO AND HB TWO WAS THAT WE HAVE HISTORICALLY SAID, LOOK, WE'RE GOING THROUGH THESE NON-GROWTH PERIODS.
WE'RE NOT GONNA INCREASE THE TAX RATE.
YOU ALL SAID THAT CLEARLY DON'T DO IT.
WE MANAGE THE BUDGET, WE'RE GONNA MAKE IT, WE'RE GONNA MAKE ADJUSTMENTS.
BUT WE DID THAT WITH THE EXPECTATION THAT WHEN I GOT TO 2015 WHEN OVERCOMING OUT OF RECESSION, YOU'RE GONNA GET GROWTH.
WE CAN RECOVER, WE CAN, WE CAN MANAGE FOR A COUPLE YEARS OF HAVING THAT KIND OF AN IMPACT.
WE CAN'T MANAGE THAT LIKE CONTINUOUSLY.
WHAT THE STATE DID WAS THEY CAME IN AND SAID, WE'RE GONNA CHOP THAT 2015 TO 2019 OFF.
SO WE'D LIKE YOU TO CONSIDER DEVIATING FROM THE CURRENT 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.
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 GONNA HAPPEN IN THE FUTURE, STUDENTS OR KIDS
WE'RE GONNA HAVE TO ASK FOLKS TO PAY MORE IN THE TAX RATE.
'CAUSE WE'RE GONNA GO UP TO 3.5%.
IS THAT, IS THAT, AM I WRONG? YES, YOU'RE, YOU'RE RIGHT.
BUT REMEMBER THAT A COUPLE OF THINGS.
PROPERTY TAXES ACTUALLY LAG THE ECONOMY.
SO WHEN YOU LOOK AT LIKE 20, YEAH, IT WAS 2008 WAS THE 13, THE RECESSION, 2009, 2010, YOU START SEEING THE, SO IT TAKES A WHILE FOR THE PROPERTY TAXES TO CATCH UP WITH THE ECONOMY.
SO WE WOULD PROBABLY BE LOOKING AT MORE OF THOSE YEARS WHERE THE ECONOMY'S 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 THAT CARRY FORWARD.
SO IF WE'RE NOT USING THAT THREE AND A HALF, THEN WE GET TO CARRY IT FORWARD.
'CAUSE YOU CAN SEE AS WE COME OUT, IT TAKES A LITTLE TIME FOR THAT TO HAPPEN.
UM, FIVE YEAR WOULD'VE GIVEN US A LOT OF FLEXIBILITY.
THREE YEARS GIVES US SOME FLEXIBILITY, BUT IT, IT, IT, IT, IT REALLY IS GONNA LEAVE US SHORT AT THE END OF THE DAY.
I THINK I'M, WHERE I, I'M EXACTLY, IF I WERE A POLICYMAKER INTO THE NEXT BUDGET SESSION, I'D BE EXACTLY WHERE COUNCILWOMAN GONZALEZ IS ON THIS.
IS THAT IF YOU CONSIDER THE POSSIBILITY OF, OF A RECESSION, IF YOU CONSIDER THE IMPACTS, WHICH WE HAVE NOT YET BEEN ABLE TO MEASURE AROUND SB TWO, THE STATE IS TELLING THE CITIES YOU'RE GONNA BRING IN LESS REVENUE, UH, NOT BY CHOICE, BUT BY FORCE.
AND THEN AT THE SAME TIME AS WE, 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 SAY, LOOK, WE'RE GONNA TAKE IN LESS REVENUE.
UH, 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, UH, AS MUCH AS FOLKS ARE LOOKING FOR PROPERTY TAX RELIEF, I, I'D BE SORRY, SOMEBODY'S ALREADY YELLING AND SCREAMING ABOUT MY POSITION ON THIS
I THOUGHT I'D AT LEAST GO BACK TO AN EMAIL, BUT NOW I'M GETTING IT REAL TIME
UM, YEAH, THE, THE IDEA OF PROPERTY TAX RELIEF, I THINK IS, IS A QUESTION OF, OF WILL YOU BE ABLE TO DELIVER TO THE RESIDENT, UH, BECAUSE WE HAVE LOWERED OUR TAX RATE,
[01:55:01]
AND YOU WOULD, 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, I'M AFRAID THAT IF YOU DO A HOMESTEAD EXEMPTION ACROSS THE BOARD, UM, YOU'RE GONNA GET TO THE POINT WHERE YOU'RE GONNA HAVE, HAVE FOLKS SAY, LOOK, I DIDN'T FEEL IT.
BUT YOU'RE ALSO GONNA MEAN, IT ALSO MEANS YOU TOOK IN LESS REVENUE THAT YEAR, SO YOU'RE GONNA HAVE TO GET IT FROM SOMEWHERE.
AND IT'S FROM THE SAME FOLKS THAT ARE ASKING FOR, FOR MORE SERVICES.
SO I THINK THAT'S THE, THE REAL TENSION, UM, TO THIS.
AND I THINK, AGAIN, I'LL REITERATE FOLKS WHO NEED TAX RELIEF, UM, ARE NOT FOLKS WHO HAVE A $500,000 HOME OR A MILLION DOLLAR HOME, BECAUSE THEY TAKE IN MORE, NO DOUBT.
UM, AND I THINK THE FOLKS WHO, IF YOU WERE MAKING JUST AN ARGUMENT ON WHO NEEDS TAX RELIEF THE MOST, THERE WOULD BE FOLKS IN MY DISTRICT WHO, WHO NEED THAT.
AND I JUST DON'T KNOW HOW YOU DO ACROSS THE BOARD AND SAY, YEAH, RICH FOLKS NEED, NEED AS MUCH, UH, UH, TAX RELIEF AS POOR FOLKS, BUT IN THIS CASE, WE'RE GONNA GIVE RICH FOLKS MORE OF THE SAVINGS 'CAUSE THEY'VE GOT A MORE EXPENSIVE PROPERTY.
AND, AND LOOK, YOU ALL HAVE TO DEAL WITH THAT TENSION AT THE SAME TIME THAT YOU ALL WANT TO TAKE UP, YOU WANT TO TAKE MORE REVENUE, TAKE REVENUE AWAY FROM THE CITY AT THE SAME TIME THAT YOU WANNA PROVIDE MORE SERVICES.
AND I JUST DON'T THINK THE TWO MATCH UP.
SO, MAN, THEY'RE REALLY GIVING, GIVING IT TO ME ON THIS ONE.
SO I, I I THINK THAT'S A, THAT'S A REALLY DIFFICULT, UH, CONVERSATION THAT YOU'VE GOT.
UH, AND THERE'S JUST TOO, TOO MANY UNKNOWNS WITH THE POTENTIAL OF A, OF A RECESSION WITH SB TWO, THE LOSS OF REVENUE FROM C P I'M SORRY, FROM, UH, THE RIGHT OF WAY, UM, THAT YOU'RE LOSING 7 MILLION OFF THE TOP NEXT CYCLE.
AND, AND I THINK THAT THAT'S A REALLY, I MEAN, I'D BE WHERE COUNCILWOMAN GONZALEZ IS, LET'S JUST WAIT THIS OUT BEFORE WE TALK ABOUT AN ACROSS THE BOARD HOMESTEAD EXEMPTION.
I'M REALLY GLAD THAT WE'VE HAD THOSE, THAT MILLION DOLLAR IN CONTINGENCY, NOT JUST FOR THE TWO THAT MARIA LISTED, BUT BECAUSE THERE'S THINGS OUTSIDE OF OUR CONTROL THAT WE'VE HAD TO TAKE ON THE TORNADO THAT CUT THROUGH, UH, DISTRICT ONE.
I KNOW WE HAD TO POUR INTO OUR CONTINGENCY FUNDS FOR THAT.
THERE WAS A FIRE AT THE FORMER POBLANOS, UH, THAT WE HAD TO TIE INTO OUR CONTINGENCY FUNDS FOR THAT.
SO THOSE ARE THINGS THAT YOU JUST CAN'T CONTROL.
SO, UH, THAT MILLION DOLLAR HAS BEEN THERE TIME AND TIME AGAIN, PROVEN AS, AS A NECESSITY, UH, IN MOST CASES, UNFORTUNATELY.
UH, SO WITH THAT, I, I THINK, MAYOR, UM, YOU ALL HAVE A, AN IMPORTANT CONVERSATION TO TAKE UP, BUT PLEASE KEEP IN MIND THAT, UH, PROPERTY TAX RELIEF IS IMPORTANT AT THE FRONT DOORSTEP OF A LOT OF FOLKS AS WELL AS THE SERVICES THAT COME ALONG WITH THAT.
AND YOU'RE TALKING ABOUT LIMITING THE AMOUNT OF REVENUE COMING TO THE CITY.
I DON'T THINK YOU CAN DO BOTH.
AND, AND THAT'S JUST MY, MY OPINION ON THAT.
COUNCILMAN SALDANA, WE'RE GONNA MOVE ON NOW TO THE INFRASTRUCTURE STREETS.
YOU'RE IN, COUNCILMAN, YOU'RE SH YOU'RE NOT SHOWING UP HERE.
I KNOW WE HAVE SOME IT ISSUE YOU'RE IN.
YEAH, AND I, YOU KNOW, I'M, I'M GONNA HAVE TO, UH, AGREE WITH COUNCILMAN GONZALEZ AND, AND SALANI ON THIS.
AND, AND SO, UM, YOU KNOW, I WAS TRYING TO PLUG IN SOME OF THE NUMBERS, SO I DEFINITELY WANNA 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, IS UNDERSTANDING WHERE WE ACTUALLY STAND ON THE NUMBERS.
UM, SO I WAS TRYING TO DO SOME OF THE CALCULATIONS.
UH, SOME OF THIS JUST DIDN'T MATCH UP WITH, WITH WHAT I UNDERSTAND TO BE, UM, SORT OF OUR, OUR ALL, ALL OUR, UH, POTENTIAL HOMESTEADS.
UH, SECONDLY, I, YOU KNOW, WOULD JUST WANNA POINT OUT THAT UP TO 47%, UH, OF OUR FOLKS ARE, 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, UH, IN THE LONG RUN.
AND SO WE, WE JUST NEED TO HAVE A BROADER CONVERSATION.
AND I, YOU KNOW, WE, WE KNOW, UM, WE HAVE THE INFORMATION THAT TALKS ABOUT HOW OUR RENTERS ARE PAYING, EARN LESS AND PAY MORE THAN 30.
A LOT OF THEM PAY MORE THAN 30% OF THEIR, THEIR INCOME TOWARDS, TOWARDS RENT.
AND, UM, SO WE, WE'VE GOTTA BE CAREFUL ABOUT THIS.
AND THE REASON I SAY THAT IS WE JUST HAD A MEETING AT THE APPRAISAL DISTRICT, AND, UH, WE'RE GONNA BE AUDITING ALL THE HOMESTEADS.
AND WHY ARE WE DOING THAT? IS BECAUSE WE KNOW THAT NOT, NOT EVERYBODY'S TAKING ADVANTAGE OF THE OVER 65, AND CERTAINLY NOT EVERYBODY'S TAKING ADVANTAGE OF THE HOMESTEAD.
UM, AND, 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.
SO I, I THINK WE NEED TO HAVE A, A A DISCUSSION ABOUT HOW THAT AUDIT IS GONNA TURN OUT AND HOW, HOW IT MAY IMPACT YOUR NUMBERS.
BEN, I MEAN, WOULD YOU AGREE WITH THAT? I WAS NOT FAMILIAR WITH THE AUDIT, BUT WE
[02:00:01]
COULD CERTAINLY LOOK AT THAT.WELL, WHAT I'M SAYING IS THAT MY POINT IS THE AUDIT, THE AUDIT, THE, THE PROPOSAL OUTLINED IS AS, AS WE DO THE AUDIT, THE PROPOSAL SAYS THAT THERE'S GONNA BE, UM, A LOT OF FOLKS WHO, WHO ARE NOT TAKING ADVANTAGE OF THE HOMESTEAD.
AND THE OVER 65 THAT ARE GONNA BE BROUGHT IN, OBVIOUSLY THAT'S GONNA BE OFFSET BY THOSE WHO DON'T QUALIFY.
BUT THERE'S GONNA BE AN ADDITIONAL AMOUNT.
WOULDN'T THAT IMPACT YOUR NUMBERS? UM, IT WOULD, YES, IT WOULD IMPACT THE AMOUNT OF YES.
WHERE THAT LAND, YOU'RE GONNA BE MORE ELABORATE.
UM, SO I GUESS WHAT I'M GETTING AT IS, YOU KNOW, THIS, THIS, I THINK WHAT WE'RE, WHAT WE'RE SEEING IS IT'S GONNA IMPACT US EVEN MORE THAN WHAT YOU'RE SHOWING IS, IS, SO I, ONE OF THE REASONS WE DID THAT DATA SHARING, UH, C C R A COUPLE YEARS AGO WAS BECAUSE WE WANNA MAKE SURE THAT THIS INFORMATION IS, IS AVAILABLE TO YOU.
SO JUST KNOW, UH, I, UM, IN, IN, IN LIGHT OF YOUR PRESENTATION, I JUST WANNA POINT OUT THAT THE NUMBERS ARE, ARE NOT NECESSARILY COMING OUT THE WAY.
UM, AT LEAST THE WAY I THINK THAT, THAT YOU'VE CALCULATED THEM AND MORE, AND, AND MORE IMPORTANTLY, UM, I THINK WE'RE GONNA HAVE, UM, YOU KNOW, AN ADJUSTMENT OF THAT FROM THE APPRAISAL DISTRICT, UH, BECAUSE THEY'RE, THEY'RE AUDITING THAT OR THEY'RE GONNA AUDIT.
AND SO WE NEED TO, I THINK WE NEED TO GET, GET IN TOUCH WITH THEM, FIND OUT WHAT THAT TIMELINE IS, AND, 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 COUNCILMAN GONZALEZ AND SALANA, UM, ABOUT, YOU KNOW, LET'S, LET'S BE MORE, UH, METHODICAL ABOUT WHERE WE'RE REALLY LANDING ON THIS.
'CAUSE I THINK THAT THIS IS A MUCH BIGGER IMPACT THAN YOU'VE EVEN PRESENTED.
AND, AND AGAIN, I ALSO WANNA POINT OUT THAT THE APPRAISAL DISTRICT, UM, DOES DO A LOT TO, TO INFORM, UH, RESIDENTIAL HOMEOWNERS ABOUT THEIR PROTESTING RIGHTS.
THEY'VE DONE 43,000, UH, PROTESTS NOW AT 87% SUCCESS RATE.
SO, UH, THEY'RE DOING PRETTY WELL.
I ENCOURAGE ANYONE, AND IN FACT, ANY, ANY ONE OF Y'ALL WANT, WANT TO TOUR WITH ME, THE APPRAISAL DISTRICT AND SEE THAT PROCESS, I ENCOURAGE YOU TO DO THAT.
UM, IT, IT IS, UH, IT IS A VERY, VERY, UH, OPEN PROCESS AND CERTAINLY ENCOURAGE FOLKS TO, TO GET MORE AWARE ABOUT HOW THEY CAN PROTEST AND HOW THEY SHOULD DO IT.
UM, AND THEN LASTLY, I MEAN, I THINK, YOU KNOW, WE, WE WANT TO, WE ALSO WANT TO, UH, BE CLEAR ABOUT WHAT PROPERTY TAXES ARE.
PROPERTY TAXES ARE YOUR APPRAISAL AND YOUR TAX RATE, THAT'S PROPERTY TAXES.
IT'S NOT, IT'S NOT ONE OR THE OTHER.
AND, UH, WE, WE'VE, WE DO HAVE TO HAVE SOME TOUGH DIS DISCUSSIONS ABOUT THAT AND WHAT THAT REALLY MEANS, AND HOW IT CUTS, HOW IT COULD POTENTIALLY CUT SERVICES, AS COUNCILMAN ALANA POINTED OUT.
UH, IT'S INCREDIBLY COMPLEX AND THERE'S A LOT OF THINGS OUT THERE, UM, THAT IN WORKING WITH THE TAX ASSESSOR BUI THAT, UH, ARE AVAILABLE TO PEOPLE THAT NEED HELP, LIKE TAX DEFERMENTS, ESPECIALLY FOR THOSE OVER 65.
UM, SO WE, WE WANNA BE, UH, WE WANT TO HELP EDUCATE PEOPLE ABOUT THAT.
RECENTLY, I HAD SOMEBODY COME UP TO ME AND SAY, YOU KNOW, PROPERTY TAXES ARE SO UNFAIR, AND I JUST NOTICED MY, MY LAND VALUE, MY LAND PRICES SKYROCKET, AND I CAN'T DO ANYTHING ABOUT IT.
WELL, WE KNOW THAT PART OF THAT HAS, HAS BEEN HOW WE HAVE, UH, WE'RE DOING A WHITE AREA REZONING, AND IN SOME CASES THERE'S, THERE'S PROPERTIES THAT ARE ON TOP OF A 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 ZONING.
AND THIS IS A STATE THAT DOES, DOES, DOES NOT, UM, DISCLOSE SALES INFORMATION.
I MEAN, I, I KNOW A LOT OF PEOPLE THINK THAT THEY DO, THEY DON'T.
AND SO IT DOES HAVE TO SORT OF, IT'S A LITTLE CAT AND MOUSE GAME.
BUT, UM, YOU KNOW, WE, WE NEED TO HAVE THAT DISCUSSION.
AND CERTAINLY, UH, HAVING A DISCUSSION ABOUT OUR TAX RATE IS, IS, IS VERY WELCOME.
AND WE'RE GONNA BE, I THINK WE'RE GONNA 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, AND EVERY DISTRICT IS IMPACTED A LITTLE DIFFERENT FROM THE OTHER.
WE'RE, WE'LL REACH BACK OUT TO THE BARE APPRAISAL DISTRICT.
WE DID, UM, WORK WITH THEM AND PULL THIS DATA FROM THEM, BUT I I, WE'LL, WE'LL REACH BACK OUT TO
[02:05:01]
THEM.AND YEAH, AND WHEN I MENTIONED THE NUMBERS MAY CHANGE, IT'S ON THE PROPERTY TAX RELEASE SIDE, SO IF WE ENDED UP WITH A LOT OF PEOPLE THAT AREN'T ON THE 8 65 EXEMPTION, THAT OBVIOUSLY INCREASES THE AMOUNT OF PROPERTY PROTECTION.
YEAH, NO, IT'S NOT YOUR FAULT.
WE JUST, THIS WAS LITERALLY, UH, UH, JUST ON MONDAY.
SO, UM, THIS IS, THIS IS COMING UP AND I KNOW THAT, UH, THAT INFORMATION STILL HASN'T, UH, BEEN RECEIVED AND, AND SO I THINK WE JUST NEED TO CREATE A TIMELINE SO THAT IT CAN BETTER INFORM YOUR NUMBERS.
THANK YOU, COUNCILMAN TREVINO.
UM, WE'RE GONNA MOVE NOW TO THE FIRST OF THREE OF OUR INFRASTRUCTURE ITEMS. UH, THIS IS FOR PRESENTATION, UH, PURPOSES ONLY.
WE'LL, WE'LL TAKE SOME QUESTIONS, BUT KEEP IN MIND IF THERE'S A DEBATE, IT'LL HAPPEN AT THE GOAL SETTING SESSION.
I, I WILL SAY ONE LAST THING THOUGH, WHILE JEFF IS HERE AND BEN IS STILL HERE, UM, WITH REGARD TO THE IMPACT OF PROPERTY TAX RELIEF OF DIFFERENT FORMS, IT WOULD BE GOOD TO HAVE, UH, A SENSE OF THAT FROM THE NOW SIGNED HB THREE.
UH, WE DID PLAY A ROLE IN THAT.
I MEAN, WE PLAYED A SIGNIFICANT ROLE IN THAT, UH, 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, LET'S ALSO TALK ABOUT THE, THE RELIEF THAT WAS FOUND AT THE STATE LEVEL, UH, THAT WILL BENEFIT US AS WELL.
UM, SO RA'S GONNA COVER SOME STREETS AND INFRASTRUCTURE TOPICS, UM, AND I'LL SUGGEST THAT, UM, 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.
UM, WE'RE NOT ASKING YOU IN THESE TOPICAL AREAS FOR BUDGET DIRECTION.
IT'S ALL THE PREP WORK AGAIN FOR JUNE 21ST.
SO, UM, UM, WE ARE HAPPY TO RESPOND TO QUESTIONS, GET ADDITIONAL DATA, AND MAKE SURE THAT YOU'RE PREPARED, UH, FOR JUNE 21ST.
SO WE'LL MOVE, WE'LL MOVE POLICE AND FIRE TOMORROW AFTERNOON AND LET ROZI GIVE, HAVE TIME THIS AFTERNOON.
GOOD AFTERNOON, MAYOR AND COUNCIL.
I AM REZI SINI, INTERIM DIRECTOR, CITY ENGINEER FOR TRANSPORTATION AND CAPITAL IMPROVEMENT DEPARTMENT, OR T C I.
BEFORE I START MY PRESENTATION, I'D LIKE TO INTRODUCE FEW OF MY TEAM MEMBER CHRISTIE CHAPMAN FOR SUPPORT GROUP.
ANTONIA FOR STREETS NEPHEW GARZA FOR STORMWATER AND ART, REINHARDT FOR TRANSPORTATION AND PROJECT DELIVERY.
OUR MISSION STATEMENT, RENOVATION AND DEDICATION.
WE BUILD AND MAINTAIN SAN ANTONIO'S INFRASTRUCTURE.
T C I WORKS TO ENSURE RESIDENT HAVE A SAFE MULTI-MODAL ACCESS TO COMMUNITY DESTINATION, IS RESPONSIBLE FOR PLANNING AND IMPLEMENTATION OF INFRASTRUCTURE NEED, AND IS ACCOUNTABLE TO ITS RESIDENTS STREET NETWORK CONDITION.
WE HAVE THROUGHOUT THE CITY, 1,155 CENTER MILE ROADWAY WAY 38% OF THOSE EXCELLENT CONDITION OR GRADE A 24% IS IN GOOD CONDITION, OR GRADE B 14% IS IN FAIR CONDITION OR GRADE C, AND ANOTHER 14% IN POOR CONDITION WITH GRADE D AND 10% IN GRADE F, WHICH IS FAIL CONDITION.
USUALLY FOR STRAIGHT WITH IN EXCELLENT CONDITION.
WE USE A CRACK SEAL AND SEAL COAT FOR STRAIGHT WITH A GOOD CONDITION.
WE USE A SLURRY SEAL MICROSURFACING FOR STREET WITH FAIR CONDITION MILL OVERLAY, AND FOR STREET POOR AND FAIL FOR MAED MILLION OVERLAY AND BASE FAILURE REPAIR AND OF COURSE, RECONSTRUCTION AND EXAMINATION.
FOR FAIR STREET, AS I MENTIONED, WE HAVE ONE 4,155 CENTER MILE ROADWAY THROUGHOUT THE CITY.
IF WE HAVE TO BRING ALL OF THESE ROADWAY FOR EXCELLENT CONDITION, IT'LL COST US 1.5 MILLION, 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 FOG, AND SLOWLY SALE AND MICROSURFACING.
AND THE OTHER ONE IS REHABILITATION, WHICH INCLUDES MILLION OVERLAY, FULL DEPTH REC, ELIMINATION, AND OF COURSE RECONSTRUCTION.
AS YOU CAN SEE ON THE GRAPH ON THE RIGHT.
[02:10:01]
SINCE 2019 TO 2000, 2009 TO 2015, OUR STREET FUNDING HAS BEEN 30 TO 41,000, $41 MILLION.AND 2016 AND 2017 ALMOST DOUBLED THE FUNDING.
AND LAST YEAR, TWO YEARS, IT IS COMPARING FOR 2009, THAT HAS GIVEN US ABILITY TO DO MAINTENANCE ON MANY ROADWAY PROJECT AND ALSO BE ABLE TO RECONSTRUCT SOME OF THOSE STREET WHICH WAS IN D OR F CONDITION.
OUR TWO YEAR STREET IMPROVEMENT STRATEGY IS A 2018, WHICH WAS THE FIRST YEAR WE HAD 99 MILLION FUNDING, WHICH IT, THE IDEA WAS TO BRING ALL OF THE DISTRICT IN SAN ANTONIO AVERAGE P C I ABOVE 70 OVER 760 CENTER MILE OF ROADWAY WE HAVE MAINTAINED FROM THAT 475 MILES WAS IN COUNCIL DISTRICTS WITH THE LOW P C I.
AS YOU CAN SEE IN GRAPH RIGHT, WE HAD FIVE COUNCIL DISTRICT IN 2017, THEIR AVERAGE P C I WAS BELOW 70 AND WE ARE PROJECTING BY COMPLETION OF 2019 PROGRAM.
ALL COUNCIL DISTRICT, ALL 10 OF THEM IN SAN ANTONIO WILL BE 70 OR ABOVE 70.
IN 2018, 99 MILLION WAS DISTRIBUTED 64 MILLION BASED ON ROUGH PROPORTIONALITY.
AND 35 MILLION WAS DISTRIBUTED BASED ON ANY COUNCIL DISTRICT HAD THIS AVERAGE P C I OF BELOW 70 IN 2019, WHICH THE FUNDING WAS INCREASED BY 11 ADDITIONAL MILLION 110 MILLION, 64 MILLION WAS DISTRIBUTED BASED ON ROUGH PROPORTIONALITY.
35 OR ANY CONSULT DISTRICT HAD A P C I OF UNDER 70 AND 11 MILLION WAS ALLOCATED FOR TYPE C AND D.
GREAT ROADWAY IN LOOP 14 AND OLDER AREA IN CONSULT DISTRICT EIGHT AND NINE.
MOVING FORWARD, STAFF RECOMMENDING 50 50 DISTRIBUTION 110 MILLION TO DIVIDE BY 50 50, WHICH IS 55 MILLION DISTRIBUTED BASED ON THE SIZE OF THE NETWORK BECAUSE SOME CONSULT DISTRICT HAS MUCH, MUCH MORE ROADWAY TO MAINTAIN THAN OTHER.
AND THE OTHER 55, BASED ON THE CONDITION, SOME CONSULT DISTRICT HAS A STILL LOWER P C I, WE ARE RECOMMENDING BASICALLY 50 TO 50 TO GO FOR CONDITION AND 50 FOR THE SIZE OF THE NETWORK.
STREET MAINTENANCE PROGRAM DELIVERY.
HOW WE ARE LIKE TO DELIVER THIS ONE ANNUALLY TREATMENT PROGRAM.
PROJECT HAS COMPLETED WITHIN 12 MONTHS.
THESE PROJECT MAINLY ON PRESERVATION, WHICH INCLUDES CRACK, FOX, SEALING, SEAL, MICROSURFACING, AND MILL AND OVERLAY.
THESE PROJECT CAN BE DONE WITHIN YEAR OR EVEN LESS THEN TWO YEAR RECONSTRUCTION.
PROGRAM DESIGN BEGINS IN FIRST YEAR.
CONSTRUCTION BEGINS IN SECOND YEAR, AND PROJECTS WILL BE DONE WITHIN 18 TO 24 MONTHS.
USUALLY THIS, THE PROJECT REQUIRES DESIGN, REQUIRES UTILITY COORDINATION, AND OF COURSE CONSTRUCTION TAKES LONGER THAN PRESERVATION.
NOW I'M TALKING ABOUT SIDEWALK IN 2019.
WE HAVE A 19 MILLION, 9 MILLION WAS FUNDED FROM A D T AND 10 MILLION FROM 2017 POUND PROGRAM.
WE HAVE OVER 5,000 MILE OF SIDEWALK.
WE HAVE A SLIGHTLY UNDER 1900 MILE OF GAPS, AND WE ARE COMPLETING 45% OF WHAT WE WERE PLANNING TO DO THIS YEAR.
SO FAR FOR 2020 20, WE ARE RECOMMENDING 70,000,005 MILLION FROM A D T AND 12 MILLION FROM ONE PROGRAM.
[02:15:01]
AND WE ARE WORKING WITH EACH COUNCIL DISTRICT TO IDENTIFY THIS PROJECT, ESPECIALLY THE ONE IS FUNDED BY BOND TO START CONSTRUCTION OF THOSE PROJECT.WORKING WITH COUNCILMAN TINO, WE ARE LOOKING REALLY THE WAY WE HAVE DESIGNED 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 IS ALL WE ARE GOING TO DO.
SIDEWALK, NO RETAINING WALL, NO CURB, NO DRIVEWAY CONSTRUCTION.
WE ARE AVERAGING $48 PER LINEAR FOOT FOR FOOT SIDEWALK.
BUT OF COURSE FOR COMPLICATED, UH, SIDEWALK PROJECT, WHEN THERE IS A RETAINING WALL OR DRIVEWAY HAS TO BE REBUILT BECAUSE IT'S STEEPER SLOPE, THEY'RE COSTING $84 AND WE ARE STILL WORKING WITH EACH COUNCIL DISTRICT TO IDENTIFY THE PROJECT CAN BE DONE FASTER AND LESS EXPENSIVE.
VISION ZERO, 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 A FIRST FIVE MONTH OF EACH YEAR.
WE MAKE SURE WE WANNA COMPARE APPLE TO APPLE.
THE VEHICULAR FERTILITY HAS GONE DOWN.
MOTORCYCLE FATTER FATALITY HAS BEEN FLOODED OR HAS GONE DOWN ON CERTAIN YEAR COMPARING CERTAIN YEAR.
BI UH, PEDESTRIAN HAS BEEN FLAT COMPARING CERTAIN YEAR, BUT HAS GONE UP UNFORTUNATELY ANOTHER YEAR.
AND BICYCLE HAS BEEN FLAT COMPARING SOME YEAR AND HAS GONE DOWN COMPARING SOME OTHER YEARS.
BIKE FACILITY WE HAD IN 2019, 1 MILLION FOR BIKE, WE ARE DOING HALF A MILE, HALF A CENTER MILE, RAILWAY BIKE, TRAIL BIKE LANE, RE STRIPING AND SA BIKE EDUCATION AND OUTREACH.
WE ARE DONE 80% OF WHAT WE WERE PLANNING TO DO.
WE HAVE 173 LANE MILES, 13 PATH 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 ON THE MAP, REALLY HAVING VERY DETAILED 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 WAY TO PROVIDE WIDER SIDEWALK PROTECTED BIKE LANE AND ALSO PROVIDE FOR TRAFFIC TO FLOW.
WE WANNA IDENTIFY THESE WHEN WE ARE WORKING ON BICYCLE MASTER PLAN CONNECT SA SAY TOMORROW WE ARE ASKING $50,000 TO USE SOPHISTICATED SOFTWARE TO BE ABLE 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.
I'M AVAILABLE TO AN ANSWER ANY QUESTION YOU MAY HAVE.
SO, UH, COUNCILWOMAN, LET ME, THERE'S A COUPLE OF KEY TAKEAWAYS THAT ARE, THAT ARE PART OF THE, THE, UH, THE PRESENTATION.
UM, ONE WAS, UH, AND RAZZI SHOWED THAT THE STRATEGY THAT WAS, UH, LAID OUT TWO YEARS AGO TO RAISE THE P C I SCORE AND ALL THE DISTRICTS WERE PROJECTING THAT WE WILL ACHIEVE THAT BY THIS BY THIS YEAR.
UM, SECONDLY, UH, AND IT, IT KIND OF GOES BACK TO SOME INTERNAL WORK, BUT ALSO A QUESTION THAT COUNCILMAN COURAGE ASKED, UH, AT THE FORECAST PRESENTATION, WHICH IS IF WE HAVE $110,000, ARE WE SPENDING IT? I'M SORRY, 110 MILLION NOT A HUNDRED.
I GUESS THAT'S LIKE ONE SQUARE FOOT OF SIDEWALK
UM, ARE WE SPENDING IT? ARE WE BEING EFFICIENT? AND SO, UH, ONE OF THE CONCEPTS THAT WE'RE LOOKING AT, AND WE CAN FURTHER DEVELOP AND, AND HAVE READY ON THE JUNE, JUNE 21ST, BUT WE'RE 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.
UM, WE'RE SEEING BETWEEN 25 AND $30 MILLION FOR STREET RECONSTRUCTION PROJECTS.
[02:20:01]
THOSE ARE NOT ANNUAL PROJECTS.UM, THE, THE, THE, THE PREVENTATIVE WORK ON A STREET WE CAN GET DONE IN ONE YEAR.
SO THE CONCEPT IS POTENTIALLY, UM, HAVING AN ANNUAL STREET MAINTENANCE BUDGET AND A BIANNUAL STREET RECONSTRUCTION BUDGET SO WE CAN ALIGN THE DOLLARS APPROPRIATELY.
UM, RIGHT NOW, UM, RAZZI AND T C I, UM, BASED ON THE, ON THE RESPONSE TO COUNCILMAN CURTIS'S QUESTION THAT WE SHARED WITH ALL THE COUNCIL FROM THE FORECAST, THEY'RE PROJECTING TO HAVE, UM, ALL OF THE 19 PROJECTS DONE F F Y 19 PROJECTS DONE BY MID-SPRING OF 2020.
AND WHAT'S, WHAT'S WHAT THE, THE PROJECTS THAT ARE ON THE BACK END OF THAT ARE THESE RECONSTRUCTION PROJECTS.
WE GOTTA DO DESIGN IN ONE YEAR CONSTRUCTION ON THE SECOND YEAR.
SO, UM, THAT'S, THAT'S ONE TAKEAWAY.
THAT'S THE SECOND TAKEAWAY FROM THE, UM, FROM THE PRESENTATION.
THE OTHER CONCEPT THAT IS BEING INTRODUCED, AND IT'S FOR DISCUSSION AND FOR YOU TO THINK THROUGH, UH, TODAY AND THROUGH THROUGH THE 21ST, IS IF WE'VE BEEN ABLE TO, THROUGH OUR EQUITABLE EQUITY LENS, LOOK AT RAISING SCORES CITYWIDE, UH, TO, UH, THAT 70 P C I, WHAT'S NEXT? WE WANNA MAKE SURE WE'RE MAINTAINING IT.
WE WANNA MAKE SURE THAT WE'RE EFFICIENTLY USING DOLLARS.
UM, AND HOW DO WE BALANCE? AND THE, THE, THE, THE, THE, THE THOUGHT THAT WE'RE, THAT WE'RE PRESENTING TODAY, UM, IS, IS RECOGNIZING, TAKING INTO CONSIDERATION THE SIZE OF THE NETWORK, UH, BY DISTRICT, BUT ALSO THE CONDITION, RIGHT? AND SO IT'S GOT A BALANCE.
YOU'VE GOT THE QUALITY OF THE, OF THE, OF THE NETWORK OR THE SCORE VERSUS THE SIZE OF THE NETWORK, THE QUANTITY.
AND, AND, UM, WE PLAYED AROUND WITH A COUPLE OF DIFFERENT OPTIONS, UM, UM, AS WE WERE PREPARING FOR, UH, THIS SUMMER AND THIS PRESENTATION.
AND, AND, UM, THE MORE WE TALKED INTERNALLY, IT SEEMED, IT SEEMED BEST TO, TO, TO MAKE IT AN EVEN SPLIT.
UM, THERE ARE, AND YOU SAW THIS, THE, THE SLIDE THAT WE HAVE, UH, SLIDE FIVE THAT SHOWS WHAT THE AVERAGE P C I SCORE IS FOR, UH, 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 BY COUNCIL DISTRICTS.
THE LAST TAKEAWAY, UM, AND IT'S PROBABLY MORE FOR DISCUSSION ON THE 21ST, IS CONNECT SA AND HOW THAT FITS INTO THE LARGER ISSUES, UH, FROM A COMMUNITY PERSPECTIVE, BUT MORE IMPORTANTLY, UH, FROM THE CITY'S PERSPECTIVE.
AND, AND THAT PROBABLY IS PROBABLY MORE CONVERSATION FOR THE 21ST.
SO, UM, RIGHT NOW AS MY COLLEAGUES, UM, HAVE CHIMED IN THAT WE'RE LOOKING AT THE OVERALL, LOOKING AT THESE TWO YEAR IMPROVEMENT STRATEGIES AND JUST DIRECTION THAT YOU'RE LOOKING FOR DIRECTION AND, UH, IS THIS WHAT WE WANT TO LAY OUT WHEN WE'RE LOOKING AT ON THE 21ST? YEAH, THE 21ST, NOT THE 21ST, NOT TODAY.
THESE ARE, THESE ARE THINGS TO KIND OF THINK THROUGH AND, AND, UH, SURE.
'CAUSE WE COULD, 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 CONCEPT DIRECTION OR IF WE WANT TO SEE SOME OTHER LAYERS ON THERE.
I, UM, YOU KNOW, I JUST WANTED TO MAKE A COMMENT ABOUT THE, THE, YOU KNOW, I DON'T GET TO SAY THIS.
MAYBE I, MAYBE I DO GET TO SAY THIS NOW, BUT YOU KNOW, BACK IN MY DAY,
AND I THINK NOW WE'VE PUMP PUMPED IT UP TO WHAT, RAZZI 110, 110.
UH, YOU KNOW, WHAT'S FUNNY ABOUT THAT IS YOU WOULD THINK PUMPING MORE MONEY INTO STREETS YEAR AFTER YEAR.
'CAUSE THIS IS ANNUAL, THIS IS, WE'VE REALIZED, UH, YOU KNOW, 110 THIS YEAR, WE'RE GONNA REALIZE 110 AS WE BUDGET, WE HOPE NEXT YEAR.
AND THEN ON FORWARD, UH, THE MONEY HAS INCREASED FOR STREETS AND, AND YOU KNOW, WHAT HASN'T DECREASED IS THE AMOUNT OF FOLKS COMPLAINING THAT MY STREET DOESN'T GET DONE.
SO I THINK THAT'S A GOOD E EVIDENCE POINT, LIKE A DATA POINT THAT WE CAN POINT TO, TO SAY, LOOK, YOU WOULD GUESS THAT BECAUSE WE'RE PUTTING MORE MONEY INTO STREETS.
WE, WE, WE USED TO, AS 10 COUNCIL MEMBERS SHARE $33 OR $33 MILLION MM-HMM.
I MEAN, AND, AND THAT'S AN INTERESTING POINT BECAUSE I HAVE A LOT OF CONVERSATIONS WITH, UH, WITH FOLKS WHO SAY, WELL, TELL ME ABOUT MY STREET.
AND I SAID, OKAY, WELL, LET US GET A PROJECTION.
UH, 'CAUSE I WANNA GET A COST ESTIMATE BEFORE WE GO OUT.
AND SO I'LL, I'LL TELL THEM FOR YOUR STREET, FOR THOSE TWO BLOCKS, WE CAN DO THE SIDEWALKS.
IT'LL PROBABLY BE ABOUT, 'CAUSE I'VE SEEN ENOUGH OF THESE, ABOUT 120, $300,000 WORTH OF A SIDEWALK PROJECT.
AND THEIR EYES WIDEN UP TO SAY, YOU'RE TELLING ME IT COSTS THAT MUCH TO DO TWO BLOCKS OF SIDEWALKS OR A FEW BLOCKS OF SIDEWALKS.
AND I KNOW COUNCILMAN TAVEN IS GETTING EXCITED ABOUT THAT ALREADY.
UM, BUT REALLY THESE ARE BIG NUMBERS THAT WE'RE TALKING ABOUT NOW.
AND AT THE SAME TIME THAT WE'VE INCREASED THE AMOUNT OF FUNDING GOING INTO THE STREETS, UH, WE'VE INCREASED THE AMOUNT OF BOND PROJECTS THAT WE'VE DONE FROM SCALES OF 500 MILLION WHEN I CAME ON TO NOW CLOSE TO 850 MILLION.
[02:25:01]
STILL A DEMAND OUT THERE.AND, AND I THINK THAT REALLY HELPS US PUT INTO PERSPECTIVE, UH, WHY IT'S REALLY TOUGH FOR US TO, TO HAVE CONVERSATIONS ABOUT REDUCING THE AMOUNT OF REVENUE BECAUSE WE WILL PROBABLY NOT LIVE AT 110 MILLION, UH, IN THE YEARS COMING FORWARD.
BECAUSE AS WE CONTINUE TO GROW, WE CONTINUE TO AGE AS WELL.
AND THE STREETS DON'T, ARE NOT FROZEN IN TIME.
UH, THEY TAKE A TON OF MAINTENANCE AND A TON OF RECOVERY.
SO I, I WANNA TAKE THIS OPPORTUNITY TO SAY THANK YOU TO RAZZIE, UH, AND HIS STAFF.
I'M GLAD YOU HAVE IT ON THIS SLIDE BECAUSE, UH, I WANT TO GIVE KUDOS TO MY TEAM.
SO DISTRICTS ONE THROUGH FIVE ARE ALL COLORED IN BLUE BECAUSE THEY HAVE A LOW P C I SCORE, BUT FOR SOME REASON THERE'S DISTRICT FOUR IS AT A 73, UH, MUST BE ONE HECK OF A COUNCILMAN.
UH,
BUT, UH, I WANT TO THANK YEAH, LOOK AT, LOOK AT WHO'S GETTING EXTRA MONEY IN THAT EQUITY BUDGET.
UH, SO THERE, WHO'S AGAINST IT? YEAH.
EVEN THOUGH HE'LL VOTE AGAINST
IF YOU LOOK AT ANY ARTICLE AND YOU KNOW, WE ARE ALL, IT ALL IS FOR ALL OF US.
IT'S REALLY DIFFICULT TO RESIST THE URGE TO GO INTO THE COMMENT SECTION ON A LOT OF THESE THINGS.
AND YOU'LL SEE FOLKS, THE CITY SHOULD GET BACK TO THE BUSINESS OF, YOU KNOW, STREETS AND DRAINAGE AND POLICE OFFICERS.
THE PROOF IS IN THE PUDDING, THE PROOF IS IN THE MONEY.
AND, AND YOU CAN LOOK AT OUR BUDGET TO SEE WHERE OUR VALUES ARE.
AND YOU'LL SEE THE BIGGEST BOCOS INTO POLICE AND FIRE RIGHT AFTER THAT.
AND WE HAVE NOT BEEN SITTING QUIETLY AT 33 MILLION.
WE HAVE INCREASED THAT TO 110 MILLION.
AND IT'S, IT'S GROWING, UH, YEAR AFTER YEAR.
SO I WANTED TO TAKE THIS OPPORTUNITY TO THANK YOU, RAZZI.
IN 2017, EXCELLENT STREET IN SAN ANTONIO WAS 25% OF ENTIRE OUR NETWORK.
BY END OF 2019 PROGRAM, THAT'S GOING TO BE 38% MORE THAN 10% JUMP.
GOOD STREET OR GRADE B WAS 30% NOVICE, 24% IS GOING DOWN, WHICH IS GOOD.
THAT'S THE REASON THEY'RE GOING UP.
EVEN THE NUMBER IS GOING DOWN, BUT THEY'RE GOING DIFFERENT CATEGORY.
AND SO ON GRADE C USED TO BE 15%, NOVICE, 14%, THEY'RE MOVING TO BE REPLACED BY GRADE B AND SO ON.
WE CAN SEE THIS MONEY IS MAKING BIG IMPROVEMENT THROUGHOUT THE CITY.
ZI HERE'S, HERE'S THE ONE QUESTION I'VE GOT FOR YOU BECAUSE IT'S, IT'S ONE THAT'S GONNA LEAD INTO, UH, 2022.
UH, SOMEBODY, I THINK IT WAS BEN LET OUT A NUMBER THAT I DON'T KNOW HE SHOULD HAVE, BUT HE DID.
HE SAID THAT WE'VE GOT CAPACITY TO DO A $925 MILLION BOND PROGRAM IN 2022.
THAT'S THE FIRST TIME I'VE HEARD THAT NUMBER.
BUT HERE, HERE'S SOMETHING THAT YOU'VE TAUGHT ME, RAZZI, WHICH IS, I SAID, YOU KNOW, 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 BIGGER BUDGET AND THEY'VE PASSED BILLION DOLLAR BOND PROGRAMS FOR THEIR STREETS, FOR TRANSPORTATION, FOR HOUSING.
AND YOU POINTED OUT SOMETHING THAT I THINK IS IMPORTANT TO POINT OUT TO, TO THE WHOLE COUNCIL, WHICH IS THAT IT DOESN'T MATTER HOW BIG THE BOND PROGRAMS ARE, IS THAT CAN THEY EXECUTE ON THEM? NOT ONLY CAN THEY EXECUTE ON BUILDING AN ACTUAL STRATEGY FOR SPENDING $1.5 BILLION ON STREETS, UH, DO YOU HAVE THE, THE THE CONSTRUCTION WORKERS, THE CONTRACTORS WHO CAN ACTUALLY DO THAT WORK? 'CAUSE AT SOME POINT YOU, YOU GET TO THE BOTTOM END OF THAT BAIL CURVE AND THERE'S JUST NOT ENOUGH CAPACITY PEOPLE, UH, AND, AND WHEREWITHAL WITHIN A DEPARTMENT TO EXECUTE THESE BIG BOND PROPOSALS.
NOW YOU ALL, AS, AS A, AS AN ORGANIZATION, WE, AND, AND ERIC HAS SEEN THIS, BEN HAS SEEN THIS.
MARIAS WE'VE GROWN INTO MOVING FROM A $500 MILLION BOND PROPOSAL TO, UH, AN $850 MILLION BOND PROPOSAL.
WE DON'T WANNA PASS THESE THINGS AND GET TO THE END OF FIVE YEARS AND SAY, WELL, WE'VE GOT, YOU KNOW, 50% COMPLETION OF THOSE PROJECTS, WHICH AUSTIN MAY BE IN A SITUATION THEY MAY NOT BE ABLE TO EXECUTE.
UM, SPENDING ALL THIS MONEY, CONTRACTING IT OUT AND THEN BUILDING THOSE PROJECTS WITHIN THE TIMEFRAME.
AND, AND I THINK AS WE TALK ABOUT CAPACITY OF, OF OUR BOND PROPOSAL IN 2022, WE ALSO TALK ABOUT THE CAPACITY OF EXECUTING ON THAT.
'CAUSE THE WORST THING YOU COULD DO TO DAMAGE THE REPUTATION OF THE CITY IS SAY YOU'RE GONNA GO OUT AND, AND BUILD $1.5 BILLION WORTH OF STREETS, INFRASTRUCTURE, DRAINAGE FACILITIES, AND THEN GET TO THE NEXT FIVE YEARS AND SAY, WELL, WE ONLY DID ABOUT 70% OF THAT.
SO GOOD LUCK PASSING A BOND PROPOSAL AFTER THAT.
SO I WANTED TO MAKE SURE YOU TALKED ABOUT THAT.
SO COUNCILMAN BEN MENTIONED THAT NUMBER.
I WAS VERY HAPPY TO HEAR THAT ONE.
AND I MAKE THE, I I MAKE THE NOTE HE CANNOT CHANGE IT.
HE'S, HE'S ALLOWED YOU TO GO SHOPPING NOW ON 925.
WELL, BUT, AND IF YOU GO BACK, GO
[02:30:01]
BACK AS TWO SLIDE OR YEAH, ONE SLIDE PLEASE.SO LOOK AT THE VERY TOP THERE.
UM, YOU KNOW, T C I IS IS PRO PROJECTING OR ESTIMATING THAT WE HAVE $1.5 BILLION WORTH OF NEED FROM A STREET STANDPOINT.
AND SO, YOU KNOW, WHEN YOU START TO TALK ABOUT NUMBERS THAT THAT LARGE A A 900 SOME ODD MILLION DOLLAR BOND PROGRAM THAT TAKES INTO ACCOUNT DRAINAGE AND PARKS AND FACILITIES, YOU START TO REALIZE HOW IF, FROM A MAINTENANCE STANDPOINT AND, AND A PREVENTION STANDPOINT, IF WE DON'T, IF WE DON'T MAKE THE TYPE OF ANNUAL INVESTMENTS WE'RE MAKING, THEN THAT NUMBER WILL EXPONENTIALLY GROW, UH, OVER TIME.
YOU'RE SAYING IF WE WERE ONLY SPENDING 33 MILLION ON THESE STREETS, THEY WOULD BE AGING, DECAYING, CRACKING.
AND THE BOND PROPOSALS WOULD'VE TO COST YOU MUCH MORE THE, THE A B, C SCORES THAT, THAT RAZZIE JUST LAID OUT.
THEY WOULD CONTINUE TO GET WORSE, WHICH WOULD DRIVE THAT TOTAL NEED NUMBER UP.
TO DELIVER A PROJECT, YOU HAVE TO HAVE STAFF, NOT JUST A NUMBER EXPERIENCE STAFF, WHICH WE HAVE, WE HAVE NUMBER OF OUR STAFF, THEY HAVE DONE NUMBER OF THE BOND PROGRAM.
THEN YOU HAVE TO HAVE GOOD RELATIONSHIP WITH UTILITY BECAUSE ON EVERY OUR PROJECT UTILITY INVOLVED, WE HAVE LUCKILY CITY OWNS BOTH OF THE UTILITY THOUSAND CPAS.
THEN YOU HAVE TO HAVE CONTRACTOR TO BUILD THOSE PROJECT.
AND WE HAVE VERY GOOD RELATIONSHIP WITH THE CONTRACTOR AND THEY REALIZE HOW MUCH OUR PROGRAM IS GROWING EVERY YEAR.
WE HAVE NUMBER OF THE CONTRACTOR, THEY DO MAINLY STREET MAINTENANCE PROGRAM.
GUESS WHAT, WHAT THEY HAVE DONE, THEY HAVE OPENED THEIR OWN ASPHALT PLAN.
THEY WANNA BE ABLE TO MAKE ASPHALT WHENEVER THEY WANT, HOW MUCH THEY WANT NIGHT WE WEEKEND.
AND THAT'S THE REASON WE HAVE BEEN ABLE TO DELIVER MANY BOND AND MANY LARGE STREET MAINTENANCE PROGRAM.
UH, AND I THINK ERIC, YOU CLARIFIED A LITTLE BIT OF IT.
I KNOW THAT, YOU KNOW, WHEN WE DID THE EQUITY BUDGET FOR STREET MAINTENANCE, UH, DISTRICT FIVE DIDN'T GET AS MUCH AS I WOULD'VE ANTICIPATED IN LARGE PART BECAUSE WE HAVE A SMALLER STREET NETWORK.
AND I THINK YOU CLARIFIED THAT ONE OF THE THINGS, UM, AND MY COLLEAGUES HAVE HEARD ME TALK ABOUT THIS NOW FOR A LONG TIME, THAT DISTRICT FIVE IS THE MOST SUSTAINABLE DISTRICT IN OUR CITY.
OTHERS MAY BE TOO, I JUST, I HAPPEN TO KNOW THE VERY INTIMATE DETAILS OF MINE IS THAT WE HAVE A, A, A GRID NETWORK WHERE ALL OUR STREETS CONNECT TO EACH OTHER, AND WE ALSO HAVE MORE NARROW STREETS.
SO THE AVERAGE STREET IN DISTRICT FIVE IS 28 FEET, UH, 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.
UM, YOU KNOW, IN DISTRICT 10, AND ONLY BECAUSE I'M MAKING THE COMPARISON, MAYBE IT WOULD BE THE SAME AS NINE, BUT YOU HAVE A LOT MORE CUL-DE-SACS AND NEIGHBORHOODS WHERE THE STREETS DON'T CONNECT.
AND SO THAT'S MUCH MORE EXPENSIVE TO MAINTAIN THAN A 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.
UM, SO I HOPE THAT WE ARE CONSIDERING THAT AS ONE OF THE THINGS WHEN WE'RE TALKING ABOUT SUSTAINABILITY OF OUR CITY.
UH, WE ALSO, FOR EXAMPLE, HAVE 10 HOUSES PER SQUARE MILE VERSUS A DISTRICT.
I COULD GIVE MANNY'S FOR EXAMPLE, JUST BECAUSE I'M PICKING ON MY COLLEAGUES MAYBE TWO OR THREE HOUSES PER SQUARE MILE.
AND IF YOU, 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 ARE PRODUCING MORE INCOME.
SO JUST SOME EXAMPLES OF HOW, UH, I KNOW OUR COMMUNITY TO BE MUCH MORE SUSTAINABLE.
SO, UH, DISTRICT FIVE HAS A SMALLER FOOTPRINT THAN UM, OTHERS, UH, EVEN THOUGH WE HAVE THE SAME POPULATION.
SO ALL THOSE THINGS I THINK, UM, ARE JUST EXAMPLES AS TO WHY DISTRICT FIVE IS THE BEST DISTRICT OF ANY OTHER IN THE CITY.
SORRY, I JUST COULDN'T RESIST.
I WAS GOING DOWN THAT AND I JUST, I HAD TO, UH, GO THERE.
BUT, UM, BUT THE OTHER QUESTION, UH, THAT I DO HAVE REGARDING EVEN SIDEWALKS IS, SO, YOU KNOW, FOR EXAMPLE, I, I PUT $10 MILLION IN THE BOND FOR
[02:35:01]
SIDEWALKS IN MY DISTRICT, BUT THEY ALSO DIDN'T GO AS FAR AS AN ANOTHER BECAUSE WE HAVE THINGS THAT MADE IT MORE DIFFICULT TO LAY SIDEWALKS.UH, WE HAVE, UM, RIGHT OF WAY CONCERNS.
ONE OF THE THINGS THAT HAPPENED, FOR EXAMPLE, OVER TIME, UH, 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, WELL, WE'RE NEVER GONNA GET SIDEWALKS ANYWAY.
UM, WE'RE GONNA GO AHEAD AND EXTEND OUR FENCE LINE TO THE STREET BECAUSE WE ARE MAINTAINING THE PROPERTY ANYWAY.
WELL THEN WHEN WE WANTED TO GO PUT THE SIDEWALK IN, YOU'RE GONNA HAVE TO TALK TO YOUR NEIGHBOR AND SAY, HEY, YOU NEED TO TAKE YOUR, YOUR STREET BACK, YOUR FENCE BACK BECAUSE NOW YOU'RE ENCROACHING ON THE RIGHT OF WAY.
SO WE HAD A LOT OF ISSUES THAT CAME UP THAT MAYBE OTHER DISTRICTS DIDN'T, BUT, 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, IT'S MORE EXPENSIVE TO DO IT.
AND THAT STILL COMES OUTTA THE SAME SIDEWALK BUDGET.
UM, IS THAT, AM I RIGHT ABOUT THAT PART? COUNCILMAN? FIRST OF ALL, WE'RE WORKING WITH C P SS TO REMOVE ANY POLE WITHIN THE SIDEWALK.
'CAUSE WE ARE NOT BUILDING BRAND NEW SIDEWALK WITH POLE IN IT.
IT JUST LOOKS BAD, IT'S NOT FUNCTIONAL, AND THEY'RE AGREED TO DO IT.
I BELIEVE STILL YOU HAVE SOME MONEY FROM THE BOND SIDEWALK.
YOU CAN PROVIDE US THOSE LISTS AND LET US TO EVALUATE AND WORK WITH YOUR OFFICE.
AND SO, BUT, BUT WHERE DOES THAT, I MEAN, BUT I KNOW THAT THAT'S TRUE THAT Y'ALL ARE WORKING WITH C P S, BUT, BUT THERE'S STILL COST ASSOCIATED WITH THAT.
I MEAN, THAT'S NOT, ISN'T THAT STILL JUST PART OF THE SIDEWALK BUDGET? NO, WE DON'T, WE DO NOT PAY FOR C P S TO REMOVE THEIR POLE.
WELL, I THINK THAT'S IMPORTANT INFORMATION.
'CAUSE THAT'S NOT THE INFORMATION I WAS GETTING FROM THE CONTRACTORS WHO WERE TELLING ME THAT, YOU KNOW, DOLLAR FOR DOLLAR DISTRICT FIVE ENDS UP GETTING LESS SIDEWALK MONEY BECAUSE WE STILL ARE PAYING FOR THE MOVER OF THE C P S POLLS.
SO THAT INFORMATION I GOT FROM A CONTRACTOR, SO, UM, NO, WE DO NOT PAY FOR C P S.
THEY DO BECAUSE OF THIS CAPITAL PROJECT, BOND FUNDED PROJECT THEY DO AT THEIR COST OR, OR SALES.
WELL, THAT'S VERY IMPORTANT INFORMATION.
UM, AND TO HAVE, BECAUSE I I, I DID FEEL LIKE PERHAPS WE WERE NOT GETTING MM-HMM.
SO THEN THEY JUST KIND OF WENT ABOUT THEIR BUSINESS EXTENDING THEIR PROPERTY LINES AND KEEPING IT, YOU KNOW, BECAUSE THEY FIGURED, WELL, NOBODY'S EVER GONNA COME IN AND BUILD SIDEWALKS.
SO IT, THAT'S A COMMUNICATION ISSUE WE HAVE WITH IN OUR COMMUNITY THAT I THINK DOESN'T EXIST EVERYWHERE.
UH, BUT WE'RE WORKING THROUGH THAT.
SO THAT THOSE ARE, I THINK ALL THE QUESTIONS THAT I HAVE.
UM, YOU KNOW, I I KNOW THAT WE ARE SEEING, UH, A LOT OF WORK IN THE NEIGHBORHOOD AND PEOPLE ARE VERY GRATEFUL.
AND SO, UM, HOWEVER, WE KNOW THAT IT'S STILL, I MEAN, THERE'S STILL SO MUCH MORE WORK TO DO.
MOSTLY THE NUMBER ONE COMPLAINT THAT WE GET IS REGARDING OUR STREETS AND SIDEWALKS, UH, EVEN THOUGH WE HAVE INCREASED, UH, THE AMOUNT OF FUNDING OVER THE YEARS.
SO, UM, THANK YOU FOR THE PRESENTATION.
UM, I THINK IT'S COUNCILMAN BELI.
IT SAYS HALL, BUT HE'S NOT THERE.
SO I'LL TAKE, I'LL TAKE, OKAY, GO AHEAD.
UM, RAZZI, UM, I, I, I CAN TELL YOU, SPEAKING OF SIDEWALKS, AND, UH, SERIOUSLY, IT'S LIKE EVERY CITY COUNCIL PERSON HAS AGREED WITH YOU TODAY.
SO I'M GONNA, I'M GONNA TAG ON I'M, I AGREE WITH COUNCILMAN GONZALEZ.
UM, I, THERE NEVER SEEMS TO BE ENOUGH SIDEWALK, RIGHT? AND I, I UNDERSTAND THAT IT'S ALWAYS THIS STRUGGLE TO CATCH UP, RIGHT? WITH THE MAINTENANCE OF EXISTING NETWORK BUILD OUT OF MORE NETWORK, AND THEN, YOU KNOW, CLOSING THAT 1800 MILES OF GAP OR HOWEVER IT IS, 1900 MILES OF GAP, RIGHT? SO, UM, I'VE GOT A COUPLE OF CONCERNS.
ONE, UH, I'LL, I'LL TELL YOU, YOU KNOW, THE THING I LIKE ABOUT SIDEWALKS IS I WAS READING SOMEWHERE, IS THAT A HOUSE WITH A SIDEWALK IN FRONT OF IT IS VALUED HIGHER THAN A HOUSE WITH NO SIDEWALK IN FRONT OF IT.
YOU KNOW, YOU ACTUALLY HAVE A HIGHER, YOU KNOW, SALE VALUE.
UM, AND THAT VALUE INCREASES DRAMATICALLY IF YOU ALSO HAVE A TREE IN FRONT OF THE HOUSE.
UM, AND I, I THINK THAT, YOU KNOW, 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
[02:40:01]
ARE REALLY IMPORTANT TO YOUR DAY TO DAY AND IT IMPACTS YOUR, UH, THE MOST IMPORTANT INVESTMENT THAT YOU MAKE, RIGHT? WHICH IS YOUR HOME.UM, BUT I'LL REMIND YOU ALSO THAT I THINK THERE'S A STORY TO TELL, AND COUNCILMAN TREVINO DOES IT VERY WELL, UH, THAT SIDEWALKS AREN'T JUST A WAY OF GETTING FROM POINT A TO POINT B, BUT SIDEWALKS ARE WHERE YOUR KIDS LEARN HOW TO RIDE THEIR BIKES, RIGHT? AND, UH, MY WIFE AND I, WE HOLD HANDS EVERY SINGLE NIGHT AND WE TAKE A 15 MINUTE WALK ON OUR SIDEWALKS, RIGHT? IT'S ONE OF THE BEST PART OF MY DAYS.
UM, AND, UM, MY, I I THINK THAT WE NEED TO PRESS THE, YOU KNOW, ON THE GAS TO MAKE SURE THAT WE INCREASE THE AMOUNT OF SIDEWALK BUILD OUT THAT WE DO.
AND WHAT MAKES ME REALLY WORRIED, AND I SAID THIS TODAY AT I G R, IS THAT THE COST OF SIDEWALKS ARE, UH, FLUCTUATE DEPENDING UPON THE COST OF THE COMMODITY, RIGHT? STEEL AND CEMENT.
AND SO, I DON'T KNOW, AND I NEED TO KNOW, RIGHT? WHAT IS, WHAT ARE THIS 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? YOU KNOW, WHEN WE BREAK DOWN THE ACTUAL, UH, RAW MATERIAL USED, RIGHT? AND IS THERE A WAY FOR US TO INSERT STABILITY INTO THAT, YOU KNOW, UM, INTO THAT COST GOING FORWARD? I KNOW THAT YOUR PREDECESSOR, MIKE FRISBEE CAME TO ME AND WAS LIKE, WELL, THAT'S JUST NOT THE WAY WE DO IT.
WELL, I KNOW, RIGHT? UM, BUT THERE'S A WAY TO START DOING THINGS DIFFERENTLY, RIGHT? MM-HMM.
AND, UH, SOMETIMES IT'S JUST A MATTER OF DOING IT DIFFERENTLY.
AND SO I WOULD LIKE TO SIT DOWN WITH YOU AND ERIC AND EXPLORE WHAT OPTIONS ARE AVAILABLE TO, UH, TO US TO BRING STABILITY TO THAT UP TO, AND INCLUDING MAYBE HEDGE BUYING, YOU KNOW, SOME OF THE RAW MATERIALS.
RIGHT? UM, THE SECOND THING I WANNA TALK TO YOU ABOUT IS, UM, BICYCLE MASTER PLAN FROM 2011, UM, THAT'S EIGHT YEARS HAVE PASSED, AND HOW MANY MILES HAVE INCREASED OF BICYCLE LANES OR, OR, YOU KNOW, 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? UH, ART YOU HAVE, LET ME ASK ART TO ANSWER THAT.
UM, SO 2011 BIKE MASTER PLAN, IT LAID OUT ABOUT A 1700 MILE NETWORK OF BIKE FACILITIES.
AROUND THE TIME WE HAD ABOUT A HUNDRED MILES OF EXISTING FACILITIES IN PLACE.
AND TODAY WE HAVE ABOUT 275 MILES OF A NETWORK.
AND THAT CONSISTS OF, OF VARYING FUNCTIONS, LANES, FACILITIES, ROUTES, ET CETERA.
SO IN AN EIGHT YEAR PERIOD, WE'VE ADDED A HUNDRED MILES, ESSENTIALLY.
AND THAT'S ONE OF THE CHALLENGES WE HAVE.
WE'VE, IF YOU LOOK AT OUR NETWORK, IT'S FRAGMENTED, RIGHT? SO ESSENTIALLY WE'VE, WE'VE IMPLEMENTED THE LOW HANGING FRUIT, AND AS STAFF, WE FEEL THE NEXT, THE NEXT STEP IS TO UPDATE THAT MASTER PLAN TO REALLY IDENTIFY KEY CORRIDORS, ROUTES, ET CETERA, UM, AND REALLY TARGET THOSE AREAS.
SO AT A PACE OF A HUNDRED MILES PER EVERY EIGHT YEARS, UH, WHEN ARE WE GONNA REACH THAT GOAL? WELL, THE, THE KEY THING ABOUT THE, THE MASTER PLAN IS 1700 MILES IS, IS A PRETTY SIGNIFICANT NUMBER, RIGHT? AND, AND THAT MAY NOT REALLY BE THE NEED.
NOW WE WANNA REALLY DEFINE THOSE CORRIDORS WHERE THE, THE CORRECT CONNECTIONS ARE AND THEN DIVE INTO THOSE AREAS, RIGHT? BUT LIKE IN EIGHT YEARS, WE HAVEN'T IDENTIFIED THEM.
WELL, WE'RE, WE'RE FOLLOWING THE VISION OF THE MASTER PLAINTIFF.
IT'S, IT'S REALLY JUST, UH, LINE ON A MAP.
IT'S NOT, UH, IT'S A VERY HIGH LEVEL DOCUMENT.
SO WHAT WE WANT TO GO FOR NOW AND, AND REALLY DO DATA ANALYSIS COME UP WITH DETAILED, UH, SCHEMATICS TO THEN HELP SET UP BOTH OUR, OUR ANNUAL BIKE PROGRAM AS WELL AS FUTURE BOND PROGRAMS. YEAH.
I MEAN, YOU'RE GIVING ME THE ANSWERS.
THE ONLY ANSWERS YOU CAN GIVE ME ARE, AND THAT'S OKAY, RIGHT? UM, BUT I GOTTA GO BACK TO MY CONSTITUENTS AND WHEN THEY TELL ME LIKE, HEY MAN, WHAT HAVE YOU GUYS BEEN DOING IN EIGHT YEARS AND YOU'VE ONLY ADDED A HUNDRED MILES? AND IF I TELL 'EM, WELL, LOOK, IT'S JUST A REALLY HIGH LEVEL DOCUMENT AND THERE'S A MAP AND WE HAVE TO LOOK AT THE MAP AND YEAH, A HUNDRED MILES IS ALL WE GOT.
IT'S A FAIR QUESTION, RIGHT? I MEAN, LIKE, WELL, WHEN DO YOU INTEND TO HIT YOUR GOALS? AND SO I CAN'T GIVE THEM THE ANSWER, YOU JUST GAVE ME ART.
THAT'S, I MEAN, THAT'S, YOU KNOW, I'LL GET BOOED OUTTA THE ROOM AND I DON'T LIKE GETTING BOOED OUTTA ROOM.
YOU'LL, YOU'LL MAKE IT SOUND A LOT BETTER.
BUT, SO I NEED, I, I REALLY NEED HELP ERIC, ON, ON SORT OF ADDING, UH, SOME, SOME HONEST ANSWERS TO THESE FOLKS WHO QUITE HONESTLY DON'T CARE HOW HIGH LEVEL THE DOCUMENT IS, RIGHT? YOU COULD SAY WE'VE DOUBLED OUR NETWORK.
YEAH, THAT WOULD
AND THEN ALSO, I JUST WANNA MAKE SURE THAT WE GO ON RECORD, UH, MENTIONING THAT DISTRICT EIGHT, UH, MAY NOT BE THE MOST SUSTAINABLE ONE, BUT, UM, OF ALL THE DISTRICTS WE HAVE THE MOST POLITE CHILDREN.
SO, UM, THANK YOU
[02:45:01]
DUN.WOULD YOU LIKE CHANGE YOUR VIN
FIRST I JUST WANNA SAY, I THINK YOU'RE DOING A GREAT JOB, RAZZY, UH, AS, AS INTERIM, UH, I'VE REALLY ENJOYED WORKING WITH YOU.
UH, I, I REALLY APPRECIATE, UH, YOUR HARD WORK AND, UH, I KNOW YOU CARE VERY MUCH, UH, ABOUT THE DEPARTMENT AND HAVE BEEN VERY, VERY RESPONSIVE TO ALL THE QUESTIONS AND NEEDS AND, AND, UH, PROGRAMS THAT WE'VE TACKLED.
UM, SO, YOU KNOW, WE WERE JUST TALKING ABOUT SIDEWALKS, AND I WANNA POINT OUT A COUPLE THINGS.
UH, YOU KNOW, WE, WE, WE, UH, COUNCILMAN PAUL HAS TALKED ABOUT, UH, HEDGE BUYING, UH, WHICH IS EXACTLY WHAT WE EXPLORED WITH PRECAST CONCRETE SIDEWALKS, WHICH CAN BE, UH, MASS PRODUCED AND STOCKED AND, YOU KNOW, AS NEEDED.
OF COURSE, THAT'S NOT THE ONLY KIND OF SIDEWALK WE WANT TO USE IN OUR CITY.
ONLY IN AREAS WHERE IT, WHERE, WHERE WE KNOW THE SOILS ARE, ARE REALLY BAD.
BUT THIS IS, THIS IS WHERE SIDEWALKS, UM, ARE BOTH COMPLEX BUT SOLVABLE.
AND, UM, YOU KNOW, I WANT MY COUNCIL COLLEAGUES TO KNOW, UH, WE HAVE AN AUDIT THAT ACTUALLY DOES BREAK THIS DOWN.
AND THAT, THAT AUDIT IS, IS, IS, IS SOMETHING THAT I THINK IS, HAS BEEN VERY USEFUL IN, 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, YOU KNOW, SO, SO THAT'S ACTUALLY ABOUT RIGHT.
THE ISSUES ARE ALL THE EXTRA THINGS THAT WE'RE DOING THAT WE CAN, WE CAN ACTUALLY ADJUST, WHICH IS WHY I'VE CALLED FOR SOME DESIGN STANDARDS AND SOME, A MASTER PLAN.
AND, YOU KNOW, WANT TO THANK, UM, ERIC WALSH, WHO ACTUALLY DID A SITE VISIT WITH ME.
AND WE, WE LOOKED AT EXACTLY WHAT WE'RE BUILDING.
AND IF YOU LOOK AT THAT PICTURE, THERE'S A GOOD EXAMPLE ON THE, ON THE LEFT IS ONE SIDEWALK.
ON THE LEFT IS ANOTHER, YOU KNOW, THE, BY BUILDING JUST SIDEWALK, YOU CAN SEE THAT 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, YOU HAVE TO REDO AN ENTIRE DRIVEWAY, EVEN IF IT'S JUST FINE.
AND BY THE WAY, TO THE QUESTION ABOUT WHY ARE WE PUTTING, UM, POWER POLES IN THE MIDDLE OF OUR SIDEWALKS? WELL, THE POWER POLES WERE THERE, UH, WE ARE PUTTING SIDEWALKS WHERE POWER, WHERE OUR POWER POLES EXIST, AND WE, WE CAN, WE CAN MAKE A DECISION TO, TO, UH, REMOVE THE SIDEWALK FROM THOSE AREAS SO THAT THEY DO NOT CREATE A, AN ISSUE SPEC, ESPECIALLY WHEN IT COMES TO, UM, HANDICAP ACCESSIBILITY OR, OR, OR COUNCILMAN LYAS WALKING WITH HIS WIFE, HOLDING HANDS.
UH, I MEAN, THAT IS, UH, AN IMPORTANT, AN IMPORTANT THING TO, TO NOTE WHEN IT COMES TO HOW WE CAN ACTUALLY BUILD MORE SIDEWALKS.
UM, AND AT THE HEART OF THIS IS UNDERSTANDING AS, AS, AS WAS ALSO STATED JUST BEFORE, WHICH, UM, REALLY CRITICAL TO POINT OUT, WE HAVE A CERTAIN AMOUNT OF DOLLARS THAT WE, THAT WE CAN SPEND.
AND IT'S, IT'S LIKE WHEN MY MOTHER GAVE ME A DOLLAR AND SAYS, GO BUY WHATEVER YOU WANT AT THE CORNER STORE.
BUT I WAS LIMITED TO THAT DOLLAR.
AND THERE I WAS TRYING TO PICK THE S AND THE SAPAN AND, BUT I WAS, YOU KNOW, I WAS CAREFUL.
AND, AND SO THAT'S WHAT WE NEED TO DO WITH SIDEWALKS.
WE NEED TO BE THOUGHTFUL ABOUT HOW WE SPEND OUR DOLLARS AND MAXIMIZE AND, AND BUILD CLOSER TO THAT $48 PER LINEAR FOOT VERSUS $85.
UM, 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 THAT AND WE DISCOUNT IT BECAUSE WE, WE'VE ALSO LIMITED OURSELVES WITH, WITH OUR OWN, UH, POLICY THAT'S, UH, U D C 29 11.
AND, UH, YOU KNOW, I THINK I HEARD COUNCILMAN SALDANA ONCE SAY, YOU KNOW, I HATE TELLING CONSTITUENTS, WELL, YOU KNOW, U D C 29 11, IT'S YOUR RESPONSIBILITY, YADA, YADA.
AND WE, WE'VE GOTTA GET RID OF THAT.
AND IT'S NOT MEANT TO BE APPLIED TO CONSTRUCTION PROJECTS.
IT'S MEANT TO BE ABOUT, UH, MAINTENANCE OR CLEANUP.
AND, AND IT'S LIKE OUR ALLEYS, YOU KNOW, WE DON'T EXPECT PEOPLE TO REBUILD AN ALLEY.
WE EXPECT THEM TO JUST KEEP IT CLEAR OF DEBRIS, MOW THE LAWN, CUT THE EDGES, BUT POUR CONCRETE, NO.
[02:50:01]
SIDEWALKS IS THAT THEY'RE CONNECTED.THE KEY TO SIDEWALKS IS THEY'RE PART OF A BIGGER NETWORK.
AND, UH, RIGHT NOW WE'RE ALSO DOING A SIDEWALK REPAIR PROGRAM.
AND AGAIN, I WANNA THANK, UH, ZY AND ANTHONY LIA FOR, FOR, FOR HELPING OUT WITH THIS.
UM, WE THINK THIS IS A SUCCESSFUL PROGRAM, AND I REALLY WANT YOU TO TALK A LOT ABOUT THIS BECAUSE I THINK THIS IS SOMETHING WE SHOULD ADOPT CITYWIDE.
WE NEED TO START REPAIRING SIDEWALKS FOR, YOU KNOW, WE CAN REPAIR UP TO 20% OF THE BLOCK FACE THAT BRINGS BACK THE ENTIRE BLOCK.
AND, AND THAT IS A HUGE, UH, COST SAVINGS THAT BRINGS BACK MILES AND MILES OF SIDEWALKS BRINGS, BRINGS THEM BACK ONLINE.
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 DON'T, I CAN'T EVEN REMEMBER THE LAST TIME I HAD A, A SIDEWALK I CAN ACTUALLY WALK ON.
WE'RE FIXING BASICALLY THE, THE SIDEWALKS IN THE ENTIRE NEIGHBORHOOD OF TOBIN HILL THROUGH THAT METHODOLOGY.
AND, AND WE DID IT BY DOING A COST SAVINGS WITH THE, THE, THE, THE WAY WE IMPLEMENT SIDEWALKS, THE NEW SIDEWALKS, AND OUR OTHER PROJECTS.
UM, SO IT'S, IT'S GONNA TAKE BETTER DESIGN STANDARDS, UH, UNDERSTANDING THAT THIS REPAIR PROGRAM DOES LIMIT OR, OR, OR DOES, UH, RELY ON US GETTING RID RID OF UDC 29 11, OR AT LEAST INTERPRETING IT MUCH DIFFERENTLY THAN WE'RE DOING NOW.
AND IF WE DID THAT TO STREETS, WE WOULDN'T HAVE THIS P C I SCORE.
EVERY NEIGHBORHOOD, UH, WOULD, WOULD BE, WOULD BE PATCHED WITH BAD, UH, STREETS EVERYWHERE.
BUT WHAT WE DO HAVE IS, 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, UM, YOU KNOW, WE TALKED ABOUT HOW LONG IS THIS GONNA TAKE? WELL, RIGHT NOW WE DO ABOUT 40 MILES A SIDEWALK A YEAR.
UH, ON AVERAGE WE SHOULD BE DOING 200 MILES A YEAR.
AND IF YOU LOOK AT THE, THE GAP AND YOU LOOK AT HOW MUCH WE'RE REPAIRING, THAT MEANS THAT WE CAN HAVE A GOAL THAT EVERY YEAR WHEN WE'RE SITTING HERE TALKING ABOUT OUR BUDGET AND WE'RE TALKING, REVIEWING THIS, WE CAN ACTUALLY TELL OUR CONSTITUENTS, HEY, YOU KNOW WHAT? WE'RE 10% OF THE WAY.
THERE WE'RE 70% OF THE WAY THERE.
WE'RE MEASURING IT EVERY YEAR.
WE'RE WE'RE, WE'RE JUST GETTING IT DONE.
THAT'S WHAT THEY WANT FROM US.
THEY WANT US TO EXECUTE ON IT, AND THEY WANT GOOD PEOPLE LIKE OZZY TO, TO BE ALLOWED TO, TO JUST GET, GET THE WORK DONE, UNSHACKLE 'EM FROM WHATEVER CRAZY POLICY WE'RE CREATING THAT THAT DOESN'T ALLOW THEM TO JUST SIMPLY BUILD THAT SIDEWALK.
UM, SO RAZZI JUST SETTING YOU UP FOR, UH, COMMENTS ON THE REPAIR PROGRAM AND THEN TELL US ABOUT THE NEW P M O.
FIRST OF ALL, COUNCILMAN, LET ME TALK ABOUT THE SIDEWALK.
WE ARE DOING SIGNIFICANT CULTURE CHANGE IN T C I HISTORICALLY, WE HAVE BUILT SIDEWALK AGAINST THE CURB BECAUSE THAT'S THE EASY WAY TO DO IT AND BUILD A SIX INCH OR NINE INCH RETAINING WALL IF THERE IS A NEED.
WE ARE NOT DOING THAT ANYMORE.
WE, IF THERE IS A NEED AND GREAT CHANGE, WE ARE TALKING WITH THE, FIRST OF ALL, LOOKING IF THE RIGHT AWAY HAS ENOUGH TO DO IT ON THERE.
AND IF NOT, WE ARE COMMUNICATING WITH PROPERTY ROOM IF THEY ALLOW US TO GO FOOT OR TWO ON THEIR PROPERTY TO GRADING TO ELIMINATE THAT COST.
AND THE TIME TAKES WITH THE RETAINING WALL, WE ALWAYS USED TO FOLLOW JUST THE CURB LINE, THE WAY CURB MOVES.
NOW WE ARE MEANDERING TO AVOID, AVOID THE POWER POLE FIRE HYDRANT AND RETAINING WALL AND OTHER, WE ARE DOING MORE OF THOSE $48 THAN REALLY 54.
THAT'S THE GOOD NEWS ON REPAIR PROGRAM WE ARE DOING.
WE TALKED WITH YOU EARLY APRIL OR SO.
WE START ABOUT THE IDEA WE USED TO HAVE, WE ARE GOING TO BUILD GAP WHEN THERE'S A SIDEWALK IS COMPLETELY DAMAGED, EVEN THERE IS A PHYSICAL SIDEWALK, BUT FUNCTIONALLY THERE IS GAP THAT REALLY 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 GO SPEND SOME MONEY AND TIME FIX THAT 20%.
THEN WE MAKE THE NEIGHBORHOOD A HUNDRED PERCENT ACCESSIBLE.
AND WE ARE DOING ONE OF THOSE.
YOUR DISTRICT AND SO FAR IS VERY SUCCESSFUL.
AND AS YOU KNOW, WE HAVE HIRED P M O AND HE, WE MET WITH YOU LAST WEEK.
HE'S VERY EXCITED, VERY ENERGETIC.
WE DO A LOT SIDEWALK IN T C I DIFFERENT DIVISION HAS DIFFERENT FUNDING SOURCE WE DO THROUGH THE BOND PROJECTS, THROUGH THE MAINTENANCE PROJECT, I M P AND OTHER, HE'S COORDINATING THE, WITH THEM.
AND ALSO HE'S REALLY LOOKING HOW WE CAN BUILD A SIDEWALK WITH THE LAST COST.
YEAH, AND I THINK IT'S, IT'S, IT'S, UM, AS YOU SAID, IT'S A REAL CULTURE SHIFT.
[02:55:01]
SOMEBODY, LIKE A PEDESTRIAN MOBILITY OFFICER, SOMEBODY THAT LOOKS AT, UM, WAYS TO, TO MOVE PEOPLE AROUND, AND THIS IS SOMEBODY THAT'S GONNA BE LOOKING AT BIKE LANES AND SIDEWALKS, UM, IS, IS SO IMPORTANT.AND, UM, I THINK ALL OF US ON COUNCIL SHOULD, SHOULD SEE THIS PERSON AS A RESOURCE, UH, INVITE 'EM OUT TO OUR NEIGHBORHOOD ASSOCIATION MEETINGS, UH, REALLY, UH, GIVE THEM THE OPPORTUNITY TO, TO GET TO KNOW THE CITY, GET TO KNOW WHAT THE CONCERNS ARE AND WHERE THE PRESSURES ARE SO THAT HE'S, HE WILL BECOME THE, HE IS THE POINT OF CONTACT WHEN IT COMES TO THESE KIND OF GOALS.
UH, WELL, UH, AGAIN, UH, YOU KNOW, THANK YOU AND, UH, YOU KNOW, I LOOK FORWARD TO A, A VERY SUCCESSFUL IMPLEMENTATION OF OF, OF, YOU KNOW, OUR SIDEWALK DOLLARS GOING INTO BOTH THE GAPS AND REPAIR PROGRAMS. UM, I THINK PEOPLE ARE VERY EXCITED.
I'VE, I'VE, I'VE JUST RECENTLY, UH, VISITED THE TOBIN HILL NEIGHBORHOOD AND, AND YOU KNOW, THE ONE THING THEY KEEP SAYING, UH, ALMOST, UH, UNANIMOUSLY IS IT'S ABOUT TIME.
UM, RAZZI, THANK YOU VERY MUCH.
UH, WHEN DID, WHEN DID WE GET THE P C I SCORES UPDATED? WHEN WERE THEY UPDATED? P C I, THEY'RE WORKING, THEY'RE DOING END OF THIS YEAR, WE WILL HAVE TO UPDATE P C I END OF THIS YEAR A HUNDRED PERCENT.
SO THESE SCORES AREN'T NECESSARILY ACCURATE THAT YOU'RE REPORTING.
THEY'RE PROJECTED PRETTY CLOSE, SO THEY SHOULD, YOU'RE, YOU'RE THINKING THEY'RE GONNA BE CLOSE, SO THERE STILL MIGHT BE SOME VARIANCES OUT THERE, DEPENDING ON WHAT THE IT IS POSSIBLE.
AND, UM, AND HOW OFTEN DO Y'ALL DO THAT? ONCE EVERY THREE YEARS.
SO JUST TO LET FOLKS KNOW THAT THE, THOSE, THOSE ARE PRELIMINARY, UH, P C I SCORES, NOT FINAL P C I SCORES FOR ALL THE DISTRICTS.
UM, THEN I'M, I'M GLAD TO SEE US OVER THE LAST COUPLE YEARS INCREASE THE BUDGET FOR STREETS.
UM, THAT AGAIN, THE THREE MAIN TOPICS, UH, DURING MY LAST TWO ELECTIONS WAS INFRASTRUCTURE, WHICH STREETS ARE A PART OF.
AND I THINK WE'RE ANSWERING THAT CALL, UH, TAXES AND SAFETY AND SECURITY.
WE'VE WORKED ON SAFETY AND SECURITY.
IF WE CAN JUST GET THAT THIRD LEG TO THE STOOL, I THINK THAT WILL, UH, GO A LONG WAY FOR OUR, UM, RESIDENTS HERE IN SAN ANTONIO.
SO I JUST WANTED TO SAY, UM, UH, WE'RE HEADING IN THE RIGHT DIRECTION FOR THIS, ALTHOUGH, YOU KNOW, IF, IF WE'RE STILL PROJECTED TO GET THIS, UH, MILLION PLUS PEOPLE OVER THE NEXT 20 YEARS, UM, 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, UM, YOU KNOW, IT IS LIKE TAKING STEP FORWARD AND THEN TWO STEPS BACK, YOU KNOW, WITH WHAT'S HAPPENING TO OUR STREETS.
AND I'M SEEING THAT IN MY DISTRICT RIGHT NOW IN BRAND NEW STREETS THAT HAVE BEEN LAID.
UH, THE CONSTRUCTION TRAFFIC THAT'S HAPPENING ON NEW DEVELOPMENTS ARE TEARING, GOING RIGHT BEHIND IT AND TEARING 'EM RIGHT BACK UP AGAIN.
SO IT'S JUST SOMETHING TO KEEP IN MIND ON HOW MUCH WE ARE FUNDING TO THIS AND THE, AND IN THE AREAS THAT ARE GROWING AND WHAT HAPPENS TO THOSE STREETS DURING THAT DEVELOPMENT PROCESS.
SO ANYWAY, THANK YOU VERY MUCH.
I WANNA, UH, EMPATHIZE WITH COUNCILMAN GONZALEZ ABOUT SIDEWALKS.
I'VE HAD MORE BATTLES IN MY DISTRICT ABOUT SIDEWALKS THAN I THINK ANYTHING ELSE.
PEOPLE JUST DON'T WANT SIDEWALKS 'CAUSE THEY'VE GOT THEIR MAILBOXES THERE OR THEIR GARDENS THERE, OR THEIR TREES THERE OR WHATEVER.
SO, LIKE I SAID, I EMPHASIZE, EMPATHIZE WITH YOU ON THAT.
UH, I'M CONCERNED I THINK, UH, LIKE ALL OF US ARE ABOUT BIKE LANES AND I'D SURE LIKE TO KNOW, UM, WHAT THE MASTER PLAN FOR BIKE LANES WAS FROM 2011 DISTRICT NINE.
SO ART, IF YOU COULD, UH, SEND THAT TO ME, I'D SURE LIKE TO SEE THAT.
UH, ONE OF THE ISSUES THAT I HAVE, AND I DON'T KNOW IF OTHER PEOPLE IN, IN SEVERAL OF THE DISTRICT DISTRICTS HAVE THIS, AND IT'S THE CONNECTIVITY OF ALL THE STREETS WITHIN THE DISTRICTS.
UH, I KNOW A LOT OF THE INNER CITY WAS, WAS BUILT MANY, MANY YEARS AGO, AND A LOT OF THOSE STREETS RUN TRUE THERE WITHIN PATTERNS, THINGS LIKE THAT.
BUT I KNOW THAT OUTSIDE OF FOUR 10, AS THOSE DISTRICTS GOT DEVELOPED, AND CERTAINLY OUTSIDE OF 1604,
[03:00:01]
WHICH, YOU KNOW, ENCOMPASSES A LOT OF MY, MY AREA IN NORTH CENTRAL PART OF TOWN, THERE WERE STREETS THAT WERE, THAT PARTS OF THEM WERE BUILT, BUT THEY WEREN'T COMPLETED BECAUSE THEY MADE A DEAL WITH THE DEVELOPER.THE DEVELOPER WILL BUILD THE PART OF THE STREET IN FRONT OF THEIR BUILDING OR THEIR PROJECT, UH, AND THEN HOPEFULLY THE NEXT DEVELOPER DOWN THE LINE WOULD BUILD THE REST AND BUILD THE REST.
BUT THERE'S, THERE'S TOO MUCH LACK OF CONNECTIVITY BE BETWEEN SOME OF THE MAIN STREETS IN OUR DISTRICT.
SO I HOPE THAT WHEN WE 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 THEY'RE STREETS IN REALLY BAD SHAPE, I HOPE IT ALSO CON, YOU KNOW, CON CONSIDER 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, UH, I THINK NEED TO BE CONNECTED IN MY DISTRICT.
AND I KNOW I'VE EXPRESSED THAT MM-HMM.
SO I JUST WANTED TO BRING THAT UP.
UM, JUST QUICKLY TO SOME OF YOUR, UH, YOUR, UM, THINGS THAT YOU'RE PUTTING FORWARD WITH THE TWO DIFFERENT STRATEGIES NOW, LOOKING AT THE TWO YEAR STREET IMPROVEMENT STRATEGY, UM, YOU MENTIONED IN YOUR STATEMENT THAT THE COMPLETION OF THE 2019 PROGRAM, UM, BUT THAT DOESN'T MEAN THAT THEY'RE ALL GOING.
SO ARE THEY ALL GOING TO BE DONE IN 2019? NO, NOT ALL OF THEM.
SOME WILL BE GO 2020 BECAUSE OF THE SIZE AND COMPLEXITY OF THE PROJECT.
UM, AND THEN I'M VERY PROUD AND, UH, GRATEFUL FOR THE WORK THAT'S BEEN DONE OVER THESE TWO YEARS WITH OUR, UM, EQUITY BUDGET AND GETTING THE P C I SCORE, UM, AT OR ABOVE 70.
BUT TO YOUR POINT, OR TO THE POINT THAT WAS MADE, WE ONLY HAVE THE P C I SCORE OF DISTRICT TWO IS ONLY 70 IN 2019, AND DISTRICT THREE IS, IS STILL THE AVERAGE.
SO WE STILL HAVE A LOT OF WORK TO DO.
AND, UM, SO I AM, I'M LOOKING FORWARD TO SEEING WHAT THIS, UM, THE NUMBER, THE NETWORK SIZE AND THE, UM, THE P C I SCORE STILL IS WITHIN THE DISTRICT.
I'M VERY PROUD OF EVERYTHING THAT WE'VE ALL BEEN ABLE TO ACCOMPLISH TOGETHER TO SEE THESE LONG, LONG OVERDUE STREETS GETTING FIXED.
IT'S, I THINK IT'S BEEN VERY GOOD, UM, TO THE SIDEWALKS.
UH, I'LL HAVE TO CONCUR WITH WHAT MY COUNCIL COLLEAGUE WAS SAYING, COUNCILMAN GONZALEZ WITH THE SUSTAINABILITY, BECAUSE I, I BELIEVE WHAT'S HAPPENED WITH OUR EQUITY LENS APPROACH WHEN IT COMES TO SIDEWALKS, IT'S HAD A BLIND BIAS WHEN IT COMES TO SIDEWALKS BECAUSE OF OUR OLDER NEIGHBORHOODS, BECAUSE SOME PLACES WERE BUILT WITHOUT SIDEWALKS.
AND BECAUSE OUR, MANY OF OUR NEIGHBORHOODS DON'T HAVE A D A ACCESSIBLE SIDEWALKS RIGHT NOW.
SO I WOULD CONSTITUTE THAT AS STILL GAPS AS WELL, GAPS IN SIDEWALKS IN DISTRICT THREE, THAT ONE, THAT THEY DON'T EXIST, THAT TWO, THAT THEY'RE STILL TOO NARROW AND THAT I WANNA MAKE SURE THAT WE ARE STILL NOT GETTING THE SHORT OF THE STICK OR SEEING IT BEING BLIND WITH OUR SIDEWALKS IN OUR OLDER NEIGHBORHOODS IN OUR COMMUNITY.
SO I KNOW I VOICED TO YOU ALL MY CONCERN TOO, WHEN WE DID A NEW, THE NEW, UM, WHAT WAS IT CALLED? POINTING SYSTEM BECAUSE OF THE MEDICAL, THE OFFICES, THE DOCTOR OFFICES, AND WE DON'T HAVE AS MANY SELECTION CRITERIA, RIGHT, THE SELECTION CRITERIA BECAUSE WE DON'T HAVE AS MANY AS OTHER PARTS OF THE COMMUNITY.
SO THAT WAS ONE OF MY CONCERNS AND I'LL CONTINUE TO RAISE THAT CONCERN AS WE MOVE FORWARD.
AND THE SIZE OF THE DISTRICT, I KNOW WE HAVE A LOT OF RURAL AREA IN DISTRICT THREE STILL, THAT, UM, IS, DOESN'T HAVE HOUSES, BUT WE KNOW THAT'S COMING FORWARD.
BUT WE KNOW THAT THE DEVELOPERS WILL COME FORWARD AND PUT THAT, UM, CONNECTION.
UM, SO THAT'S ONE OF MY CONCERNS WITH THE, UM, WITH THE SIDEWALK PROGRAM.
AND YES, AND THAT'S WHY I DID PUT $9 MILLION IN THE BOND FOR OUR SIDEWALKS, AND THAT'S WHERE WE'RE GONNA CONTINUE TO INVEST IN THOSE, UM, THOSE DOLLARS IN, IN THE BOND PROGRAM.
BUT I NEED TO MAKE SURE THAT WHEN WE'RE TALKING ABOUT THE SIDEWALK APPS, AND YOU MENTIONED, UH, COUNCILMAN GONZALEZ 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 THAT C P S ENERGY
[03:05:01]
DOESN'T HAVE THE, THE POLES THAT THEY WILL MOVE THEM.THAT THE POLES ARE NOT IN THE MIDDLE OF THE SIDEWALKS ANYMORE.
WE'RE NOT DOING THAT, THANK GOODNESS.
UH, BECAUSE WE'VE LEARNED FROM THAT MISTAKE.
I'D LOVE TO SEE C P S IN THOSE AREAS WHERE THE STREETS ARE TOO NARROW, BUT WE NEED THOSE SIDEWALKS.
IT WOULD BE GREAT IF THEY COULD JUST PUT THE, THOSE LINES UNDERGROUND IN ALL OF THOSE OLDER NEIGHBORHOODS.
IT MAKES A LOT OF SENSE, ESPECIALLY IN THREE AND FIVE.
I'M JUST GONNA THROW THAT OUT THERE RIGHT NOW.
UM, BECAUSE OF THE NARROW AREA, I WOULD SAY COUNCILWOMAN, ESPECIALLY ON ROOSEVELT AVENUE IN THAT NARROW STRETCH.
IT'S PART OF THE THAT'S RIGHT, THAT'S RIGHT.
SO, UM, JUST, YOU KNOW, JUST SAYING THOSE THINGS.
UM, FINALLY QUESTION ABOUT, 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 CONNECT $50,000 FOR CONNECT SA IF IT MOVES FORWARD.
AND IF WE DO SEE MOVING THAT FORWARD, WHO WOULD BE IN CHARGE OF THIS 50,000 AND, UH, THE 10,000 SURVEYS AND THE MATERIALS AND THE COMMUNICATION, THE MARKETING MATERIALS? WOULD IT BE OUR CITY DEPARTMENT, RG G UH, GOVERNMENT AND PUBLIC AFFAIRS DEPARTMENT THAT WOULD BE OVERLOOKING THE $50,000? I, I THINK WE'LL, UM, I THINK WE NEED TO GATHER UP AND, AND DO A BROADER, UH, UPDATE ON, ON MORE THAN JUST THE 50,000 CONNECT SA ISSUE.
I THINK IT'S A, PROBABLY A LARGER POLICY CONVERSATION FOR THE, FOR THE ENTIRE COUNCIL.
THAT, THAT'S JUST AN ELEMENT WE WANTED TO MAKE SURE, MAKE YOU AWARE OF, BUT I THINK IT TIES INTO THE BIGGER QUESTIONS THAT YOU'RE RAISING.
THANK YOU FOR THAT, UH, CLARIFICATION.
AND THEN, UM, ALL THAT, I THINK THAT'S ABOUT, OH, BECAUSE ON THAT CONNECT ESSAY, AS YOU'RE HAVING A LARGER POLICY DISCUSSION, I'D ALSO LIKE TO KNOW HOW MUCH, IF WE'RE GONNA BE EXPECTED TO PUT IN 50,000, I'D 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.
I THINK THAT'S IT, UH, FOR THIS PRESENTATION.
WE DO THANK YOU EVERYONE FOR, UH, BEING PATIENT AS WE WORK THROUGH THESE ITEMS AND GET READY FOR NEXT WEEK.
WE DO HAVE, UH, TWO OTHER PRESENTATIONS THAT'LL BE DELAYED TILL TOMORROW.
UH, BUT WE HAVE AN EXECUTIVE SESSION AT THIS TIME.
THE TIME IS NOW 5:15 PM ON THIS 12TH DAY OF JUNE, 2019.
PURSUANT TO THE AUTHORITY GRANTED BY CHAPTER 5 5 1 IN THE TEXAS GOVERNMENT CODE V T C SS, TEXAS OPEN MEETINGS ACT.
THE CITY COUNCIL WILL NOW RECESS INTO EXECUTIVE SESSION AND DISCUSS ECONOMIC DEVELOPMENT NEGOTIATIONS PURSUANT TO TEXAS GOVERNMENT CODE SECTION 5 5 1 0.087, ECONOMIC DEVELOPMENT, THE PURCHASE EXCHANGE LEASE, OR VALUE OF REAL PROPERTY PURSUANT TO TEXAS GOVERNMENT CODE SECTION 5 5 1 0.072 REAL PROPERTY LEGAL ISSUES RELATED TO COLLECTIVE BARGAINING PURSUANT TO TEXAS GOVERNMENT CODE SECTION 5 5 1 0.071 CONSULTATION WITH ATTORNEY AND LEGAL ISSUES RELATED TO A LAWSUIT INVOLVING THE CITY OF SANTA CITY OF AUSTIN PURSUANT TO TEXAS GOVERNMENT CODE SECTION 5 5 1 0.071.