[1. 20-4889 Staff presentation of the FY 2021 Proposed Budget focusing on, but not limited to, the following City Departments or Initiatives: [Erik Walsh, City Manager; Scott Huizenga, Director, Management and Budget] A. Public Works, Transportation, and Capital Budget B. Debt Management Plan]
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UH, TIME IS 2:06 PM ON THIS TUESDAY, AUGUST 25TH.
GO AHEAD AND CALL OUR CITY COUNCIL.
UH, SPECIAL BUDGET SESSION TO ORDER.
UH, MADAM CLERK, THE ROLE COUNCIL MEMBER VINNO HERE.
COUNCIL MEMBER ANDREW SULLIVAN.
COUNCIL MEMBER SANDOVAL PRESENT.
AND EVERYONE, WE HAVE TWO PRESENTATIONS TODAY.
WE WILL DO THOSE CONSECUTIVELY, UH, AND THEN GET INTO OUR DISCUSSION.
SO LEMME TURN IT OVER TO STATE MANAGER ERIC WAFS.
COUNSEL, UH, TODAY'S PRESENTATION, THE FIRST ONE, WILL, UH, RAJI WILL COVER OUR PUBLIC WORKS DEPARTMENT BUDGET.
I'VE ASKED ROD SANCHEZ TO COVER A COUPLE OF THE SLIDES TOWARDS THE END OF THAT PRESENTATION TO TALK ABOUT THE TRANSPORTATION DEPARTMENT.
AND THEN OUR SECOND PRESENTATION WILL BE, UH, UH, BEN GO AND OUR DEBT MANAGEMENT PLAN, UH, AND CAPITAL BUDGET.
SO WITH THAT, RAZZY, YOU'RE UP.
CAN YOU HEAR ME? YES, WE CAN HEAR YOU NOW.
GOOD AFTERNOON, MAYOR AND COUNCIL.
I'M CEI DIRECTOR, CITY ENGINEER FOR PUBLIC BOOKS DEPARTMENT.
THANK YOU FOR OPPORTUNITY TO PRESENT OUR PROPOSED 2021 BUDGET.
PUBLIC WORKS CONTINUES TO BE COMMITTED TO OUR MISSION AND ENSURE THROUGH INNOVATION AND DEDICATION, WE BUILD AND MAINTAIN SAN ANTONIO INFRASTRUCTURE.
THE DEPARTMENT MAJOR PROGRAMS ARE DELIVERY OF 2017 BOND PROGRAM AND CAPITAL PROJECTS, THE FIVE YEARS INFRASTRUCTURE MANAGEMENT PROGRAM, TRAFFIC PROGRAMS, STORMWATER OPERATING PROGRAMS, AND NEIGHBORHOOD ACCESS AND MOBILITY PROGRAMS. SECOND SLIDE, JOHN, PLEASE.
PUBLIC WORKS BUDGET FOR 2021 IS 667 MILLION AND INCLUDES 867 POSITION.
OUR DEPARTMENT MANAGES SIX POUNDS FOCUSED ON STREETS, TRAFFIC, STORMWATER, AND CAPITAL PROJECTS.
A 5 20 21 PROPOSED BUDGET INCLUDES THE REORGANIZATION OF TRANSPORTATION AND CAPITAL IMPROVEMENT DEPARTMENT INTO THE TRANSPORTATION DEPARTMENT AND PUBLIC WORKS DEPARTMENT.
867 POSITION WILL REMAIN IN PUBLIC WORKS AND FOCUS ON STREET MAINTENANCE, CAPITAL CONSTRUCTION, DRAIN AND TRAFFIC INFRASTRUCTURE IMPROVEMENTS.
13 POSITION WILL TRANSFER TO NEW DEPARTMENT TO ENHANCE AND FOCUS ON TRANSPORTATION PLANNING, MANAGEMENT AND AS WELL AS EMERGING TRANSPORTATION SYSTEMS. 13.
POSITION TRANSFER TO FINANCE DEPARTMENT IS STANDARDIZED CITYWIDE RECRUITMENT AND OF COURSE, REPOSITION TRANSFER TO DEVELOPMENT SERVICES DEPARTMENT TO STREAMLINE TRAFFIC IMPACT REVIEWS FOR PRIVATE DEVELOPMENT.
BUDGET EQUITY TOOL DURING THE FISCAL YEAR PUBLIC WORKS MADE STEPS FOR THE IMPLEMENTING EQUITY.
WE HAVE FIVE MEMBER EQUITY TEAM THAT HAS PROVIDE 120 TRAINING OVER 60 EMPLOYERS HIRED A PEDESTRIAN MOBILITY OFFICER.
THIS POSITION PLAYS A KEY ROLE MEETING WITH THE OTHER DIVISION ON SIDEWALK PROJECT IDENTIFICATION AND TO PRIORITIZE SIDEWALK GAPS AND REPAIRS IN COMMUNITY OF THE COLOR AND LOW INCOME.
MOVING FORWARD INTO 2021, PUBLIC WORKS IS FARTHER COMMITTED TO ADDRESSING THE NEEDS OF THE CITY'S MOST VULNERABLE BROADWAY USER.
WE WILL LAUNCH DEPARTMENT EQUITY ASSESSMENT.
WE HAVE ALSO INCORPORATED EQUITY IN SEVERAL PROGRAM IN DEPARTMENT VISION ZERO IS ONE OF THEM.
THERE WILL BE A CRITERIA WE WILL INCLUDE FOR PROJECT SELECTION ON VISION ZERO TO PROVIDE PROJECT IN A COMMUNITY OF THE COLOR AND LOW INCOME FOR 5 MILLION STREET MAINTENANCE PROGRAM.
UNDER I M P, 50% OF THE FUNDS ARE ALLOCATED BASED ON EQUITY AT LESS
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AND THE REMAINING 50% OF FUNDS ARE ALLOCATED BASED ON MYLAB THE GAP IN THE COUNCIL DISTRICT UNDER THE N 30 2022 BOND PROGRAM.STAFF WILL ALSO INCLUDE EQUITY AS A SCORING CRITERIA FOR PROJECT SELECTION, ESPECIALLY IF PROJECTS ARE LOCATED IN THE COMMUNITY OF THE COLOR ON LOW INCOME.
OUR STREET NETWORK IS 4,160 MILE CENTER MILE COUNCILMAN PLUS YOU ARE CORRECT.
THIS IS A DISTANCE FROM SAN ANTONIO TO ANCHORAGE, ALASKA.
I'M PLEASED TO SAY 42% IS GRADE A OR EXCELLENT CONDITION.
23% IS GRADE B OR GOOD CONDITION 16% IS FAIR AND GRADE C AND SO ON.
OVER THE LAST FEW YEARS, THE CITY'S INVESTMENT ON THE STREET HAS IMPROVED.
P C I SIGNIFICANTLY, GRADE A HAS GONE UP FROM 25% IN 2018 TO TO 42% IN F 5 20 20 17% INCREASE.
THIS IS SLIDE SHOWS THE CITY'S ANNUAL FUNDING AND CITYWIDE AVERAGE P C I.
OUR GOAL TO MAINTAIN CITI'S ROADWAY PAYMENT CONDITION INDEX OF 76 OR ABOVE FOR 2021.
OUR SS M P BUDGET 102 MILLION, WHICH INCLUDES 1006 268 PROJECT TOTAL IN 371 CENTER LINE MILE.
THE 43 MILLION IN PROJECT DEFER FROM 2020 FISCAL YEAR WILL BE A PRIORITY IN DELIVER IN 2021.
THE REMAINING 59 MILLION IS FOUND ALLOCATED BASED ON EACH COUNCIL DISTRICT PAYMENT CONDITION AND SIZE OF THE DISTRICT NETWORK.
OVERALL, WE ARE MOVING IN THE RIGHT DIRECTION TO IMPROVE THE CONDITION OF CITY STREET NETWORK.
JOHN CITY FUNDING TO BE OUR BUS SERVICES.
THE CITY WILL CONTINUE THE $10 MILLION ALLOCATION UNDER THE GENERAL FUND TO BE IN 2021.
HOWEVER, VR WILL BE PROVIDED FLEXIBILITY AND THE $10 MILLION ALLOCATION WILL NOT BE TIED TO 18 ROUTES AND CORRIDORS.
THIS WILL PROVIDE VR FLEXIBILITY TO ADJUST THEIR ROUTE AND FREQUENCY IN RESPONSE TO PANDEMIC.
WE ARE, WE ALSO EXPECTED TO PROVIDE PERIOD BRIEFINGS TO THE CITY COUNCIL.
KEY TRAFFIC INFRASTRUCTURE IMPROVEMENT PROGRAM WILL REMAIN IN THE PUBLIC WORKS DEPARTMENT.
WE WILL CONTINUE OVERSEE $1 MILLION ANNUAL IS CALLED PET SERVICE PET SAFETY PROGRAM, 5.6 MILLION PAYMENT MARKING AND 1 MILLION NEIGHBORHOOD TRAFFIC COMING PROGRAM.
ADVANCED TRANSPORTATION DISTRICT.
THE PROPOSED BUDGET FOR ADVANCED TRANSPORTATION DISTRICT IS 17.2 MILLION, INCLUDES 11.8 MILLION FOR CAPITAL PROJECTS.
THE FUND'S REVENUE IS QUARTER CENTS.
SHE TAX PROVIDED BY THE VOTER IN NOVEMBER, 2040 2004.
THE PROGRAM FUNDED UNDER A D T IN ROUTE SIDEWALK TRAFFIC SIGNALS AND BIKES.
THIS PROGRAM HELPS INCREASE MOBILITY, REDUCE TRAFFIC CON CONGEST, AND IMPROVE NEIGHBORHOOD CONNECTIVITY.
THIS SLIDE SHOWS THE EXISTING SIDEWALK MILES AND THE GAP MILES BROKEN BY EACH CONCEPT.
THIS WEEK CITYWIDE, WE HAVE 5,270 MILES OF THE, THE EXISTING SIDEWALK AND 1,760 MILES OF GAP SIDEWALK PROGRAM.
THE PROPOSED BUDGET FOR SIDEWALK IS 18 MILLION.
13 MILLION FROM 2017 POUND PROGRAM AND 5 MILLION FROM I M P PUBLIC WORKS.
SIDEWALK REPAIR CREW WILL REPAIR TWO MILE DETERIORATED SIDEWALK IN, IN TOTAL THE F 5 21 EFFORTS WILL RESULT IN 67 USABLE SIDEWALK MILES FOR 5 MILLION.
SIDEWALK PROGRAM UNDER I M P EQUITY WAS CRITERIA USED IN ALLOCATION OF THE FUND.
50% OF THE FUND ARE ALLOCATED BASED ON EQUITY AT LESS AND THE REMAINING 50% WAS USED BASED ON THE MILE OF THE GAP FOR EACH DISTRICT COUNCIL.
I AM PLEASED TO SAY SINCE YOU HAVE THE LARGEST GAP IN YOUR YOUR DISTRICT, YOU ARE GOING TO GET LARGEST MONEY, UH, FROM THIS 5 MILLION.
AND CONS MANINO, I WANT TO THANK YOU FOR THE IDEA ABOUT THE
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REPAIR THE SIDEWALK WE ARE GETTING ALMOST IN RETURN WHEN WE RE REPLACE REPAIR ONE MILE, WE GET 3.5 MILE USABLE SIDEWALK.THE PROPOSED BUDGET FOR STORMWATER OPERATION FUND IS 48.5 MILLION.
THIS FUND'S REVENUE IS GENERATED THROUGH THE STORMWATER UTILITY ACCESSORIES, RESIDENTIAL, COMMERCIAL, AND INDUSTRIAL PROPERTY THAT DISCHARGES STORMWATER INTO CITY'S DRAINAGE SYSTEM.
THE FEES COLLECTED ON THE MONTHLY SOUTH WATER BILL, THIS FUNDS PAID FOR THE OPERATION SERVICES INCLUDED THE STREET SWEEPING VEGETATION MANAGEMENT, LOCALIZED FLOOD CONTROL MEASURES, AS WELL AS CAPITAL PROJECTS.
NEXT SLIDE, JOHN STORMWATER OPERATION.
THIS SLIDE PROVIDED DESCRIPTION OF THE MAJOR OPERATIONAL PROGRAM AND SERVICES FUNDED UNDER THE STORMWATER OPERATION FUND.
OUR STORMWATER OPERATIONS FOCUSES ON FLOOD MANAGEMENT, CHANNEL CREEK MAINTENANCE, VEGETATION MAINTENANCE, AND STREET SWEEPING.
THE PROPOSED BUDGET FOR STORMWATER REGIONAL FUND IS 4 MILLION AND INCLUDES 14 POSITIONS.
THE FUND'S REVENUE IS GENERATED FROM FEE IN LEO ONSITE DETENTION IMPLEMENTED IN 1997.
DEVELOPER PAYS THIS FEE WHEN THERE IS NO ADVERSE IMPACT ON STREAM AND ONSITE DETENTION IS NOT REQUIRED WITH THESE FUND.
THE CITY REVIEWS DEVELOPMENT PLANS AS WELL AS REGIONAL FRAUD CONTROL PLANS, MANAGEMENT AND CONSTRUCTION OF CAPITAL PROJECT.
NEXT SLIDE, JOHN, STORMWATER ENGINEERING.
THIS SLIDE PROVIDES DESCRIPTION OF THE STORMWATER ENGINEERING SERVICES.
WE HAVE A STORMWATER ENGINEERING TEAM AT D S T FOCUSES ON FRAUD PLAN MANAGEMENT.
THAT INCLUDES REVIEWS OF THE PRIVATE DEVELOPMENT PLANS AND PERMITS AS WELL AS CITY'S CAPITAL PROJECT.
WE ALSO HAVE A SURVEY ENGINEERING TEAM FOCUSED ON THE IDENTIFYING, MEDICATING AND REGULATING THE STORMWATER ISSUE THROUGH PLANNING, DESIGN AND CONSTRUCTION OF CAPITAL DRAINAGE PROJECT.
THREE NEW REGIONAL PROJECTS ARE PROPOSED TO BE FOUND UNDER STORMWATER REGIONAL FOR 2021 SOUTH FOSTER ROAD, 1.2 MILLION TO ELIMINATE THE LOW WATER CROSSING ALONG THE SOUTH FOSTER ROAD REGIONAL DRAINAGE PROJECT PLANNING HALF A MILLION, DEVELOPED AN UPDATE DRAINAGE PROJECT AS WELL AS REGIONAL MASTER PLAN.
WOODLAND LAKE DAM STUDY, 350,000 PRELIMINARY ENGINEERING TO INCLUDE AND ANALYSIS AND MODIFICATION TO EXISTING SPILLWAY ALONG WITH THE DOWNSTREAM ANALYSIS.
CAPAR PROJECT F 5 21 BUDGET FOR CAPAR PROGRAM IS 641 MILLION, WHICH INCLUDES 383 PROJECT, WHICH IS THE LARGEST ONE OF THE STREET MAINTENANCE PROJECT.
200 STREET PROJECT 233 MILLION.
OUR BUDGET, WE HAVE 13.4 MILLION FOR STREET BRIDGE ALLEYS WARRANTED SIGNAL.
WE HAVE 11 MILLION FOR THE ENERGY IMPROVEMENT, 4 MILLION FOR LIBRARY, 4.8 MILLION FOR PARK IMPROVEMENT, AND 5 MILLION FOR FACILITY.
I BELIEVE THE LIST OF THIS PROJECT WAS DISTRIBUTED TO EACH COUNCIL EARLY TODAY.
38 PROJECT OR 21% IS COMPLETED.
64 PROJECT OR 36% IS UNDER CONSTRUCTION.
AND 74 PROJECT OR 41% UNDER DESIGN OVERALL, 57% IN DESIGN OR UNDER CONSTRUCTION.
NEXT SLIDE, JOHN, 2017 BOUND PROGRAM.
WE ARE LOOKING TO ADVERTISE AND HAVE A 43 YEAR PROJECT COMES NEXT YEAR UNDER CONSTRUCTION AT VALUE OF A QUARTER BILLION DOLLARS, 256 MILLION.
THE LIST OF THIS PROJECT, FEW OF THE LIST OF THE PROJECT IS SHOWN ON THE TOP.
JOHN, AT THIS TIME, THIS CONCLUDES MY PRESENTATION.
I'D LIKE TO INTRODUCE ASSISTANT CITY MANAGER, ROSS SANCHEZ, WHERE HE WILL BE DISCUSSING THE NEW TRANSPORTATION DEPARTMENT.
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THANK YOU, APPRECIATE THAT.UM, ALL RIGHT, HERE'S THIS NEXT SLIDE.
UH, JUST, UH, TO TAKE YOU ALL DOWN MEMORY LANE A LITTLE BIT.
UH, BACK IN FEBRUARY, UH, ERIC SENT OUT THE MEMO ANNOUNCING, UH, THE CREATION OF THIS, UH, THIS DEPARTMENT, THE TRANSPORTATION DEPARTMENT.
AND THE IDEA WAS TO SEPARATE, UH, TRANSPORTATION PLANNING FROM FROM OPERATIONS.
I MEAN, WE, WE ALL KNOW, UH, PUBLIC WORKS AND OPERATIONS DEPARTMENT, THEY'RE GONNA BUILD STREETS.
UH, THEY'RE GONNA BUILD SIDEWALKS.
THEY'RE GONNA BUILD DRAINAGE SYSTEMS. UH, BUT THIS IS MORE OF A, A PLANNING DEPARTMENT, YOU KNOW, A VISIONARY, UH, DEPARTMENT.
SO WE TOOK 13 POSITIONS, UH, FROM PUBLIC WORKS.
UH, WE'VE ESTABLISHED A, A BUDGET OF, UH, $5.8 MILLION FOR THIS DEPARTMENT.
UH, WE ARE CURRENTLY, THESE POSITIONS ARE, ARE STILL WORKING UNDER RAZZI WHILE WE SEARCH FOR A, A DIRECTOR.
UH, BUT THAT SEARCH HAS BEGUN.
UH, WE HAVE HIRED, UH, A, A CONSULTANT AND, UH, THE JOB IS CURRENTLY BEING ADVERTISED, UH, AS WE SPEAK.
AND, UH, THEY'RE GETTING, UH, GOOD RESPONSES FROM, FROM AROUND THE COUNTRY.
SO, UH, WE'RE HOPING, UH, BY NOVEMBER, UH, WE WILL HAVE A, A SELECTION FOR THIS POSITION.
SO A LITTLE BIT ABOUT, ABOUT THE DEPARTMENT AND WHAT WE WERE THINKING.
AS I MENTIONED, THERE'D BE 13 POSITIONS.
UH, HERE'S WHAT YOU KNOW, THE FOCUS IS ON, OBVIOUSLY, LIKE I SAID, TRANSPORTATION PLANNING.
YOU GONNA LOOK AT OUR AREA CORRIDORS.
UH, WE'RE GONNA LOOK AT OUR MAJOR THOROUGHFARE PLAN.
SO THIS ARE THE FOLKS THAT ARE GONNA LOOK AT THE LINES ON THE MAP.
DO THESE LINES MAKE SENSE? DO THEY NEED TO BE REDRAWN? DO THEY NEED TO BE ADJUSTED? DO WE NEED TO DELETE SOME? OR MAYBE WE NEED TO ADD SOME.
THIS IS THE GROUP THAT'S GOING TO FOCUS ON THOSE THINGS AND ANSWER THOSE QUESTIONS.
UH, THIS GROUP'S GONNA LOOK AT, UH, VISION ZERO, UH, OUR BIKE FACILITIES, OUR, OUR SIDEWALK PROGRAM.
YOU KNOW, ONCE AGAIN, THESE ARE DIFFERENT, DIFFERENT MODES OF, OF TRANSPORTATION.
WHERE, WHERE DO WE NEED THEM? WHERE DO WE NEED TO ENHANCE THEM? UH, COUNCILWOMAN SANDOVAL TRANSPORTATION DEMAND MANAGEMENT.
THIS IS A GROUP THAT'S GOING TO GONNA TAKE THE TORCH, UH, ON, UH, ON THIS PROGRAM AND, AND LOOK AT OTHER THINGS, YOU KNOW, OTHER ALTERNATIVES TO, UH, GETTING IN YOUR SINGLE PASSENG VEHICLE AND, AND DRIVING TO WORK.
YOU KNOW, WHAT ELSE CAN WE DO? CAN WE TAKE TRANSIT? CAN WE TAKE A BIKE? CAN WE WALK? UH, THIS IS A GROUP THAT'S GONNA HELP US, UH, WITH THAT.
LIKE I SAID, THIS IS A GROUP THAT'S GONNA PICK UP, UH, VISION ZERO.
UH, SO THEY'RE GONNA FOCUS ON THAT.
UH, AND, YOU KNOW, PUBLIC WORKS HAS BEEN WORKING ON THIS.
IT'S, UH, WE HAVEN'T BEEN WORKING ON IT, BUT, UH, OF COURSE, DUE TO THE PANDEMIC, UH, WE KIND OF HAD TO HALT, UH, THIS PROGRAM.
UH, WE WERE FORTUNATE THOUGH, TO, TO WORK WITH, UH, COUNCILWOMAN GONZALEZ ON CESAR CHAVEZ STREET, AND WORKED WITH COUNCILWOMAN SANDOVAL ON CINCINNATI STREET, AND WE WERE ABLE TO LAUNCH A SHARE THE STREET PROGRAM.
WE'RE ABLE TO DO THAT FOR A MONTH IN THESE AREAS.
WE WERE ABLE TO LEARN, UH, FROM, UH, FROM THOSE PROGRAMS, FROM THOSE PILOT PROGRAMS. AND WE ARE ARE LOOKING, UH, TO ADD SEVERAL MORE OF THOSE, UH, TO, TO DO IN THE FALL.
SO, SO THIS GROUP, UH, WILL BE WORKING ON THAT AND LOOKING TO, TO LAUNCH THAT IN THE FALL.
ALSO, UM, THIS GROUP IS, UH, ESTABLISHED AN ONLINE BIKE SURVEY AND A MAPPING TOOL THAT WILL BE ONLINE, UH, SEPTEMBER THE FIRST.
SO WE'RE LOOKING TO GET SOME FEEDBACK, YOU KNOW, ONCE AGAIN ON BIKE LANES.
UH, HOW ARE THEY WORKING, WHERE DO WE NEED TO ADD 'EM, UH, WHAT ELSE DO WE NEED TO DO THEN SO THAT PE PEOPLE WILL FEEL SAFE, UH, USING THEM.
AND THAT CONCLUDES, UH, RAZZIE AND MY PORTION OF THE PRESENTATION.
AND I GUESS WE'RE GONNA TURN IT OVER TO BEN, UH, FOR THE DEBT MANAGEMENT PORTION.
UH, GOOD AFTERNOON, MAYOR AND COUNCIL MEMBERS.
SO IN THIS NEXT SECTION, I'M GONNA COVER OUR DEBT MANAGEMENT PLANS.
AND, UH, I THINK AS WE START THAT DISCUSSION, IT'S IMPORTANT TO REMEMBER THAT DEBT IS JUST A TOOL THAT WE CAN USE TO MEET OUR FINANCIAL OR FUNDING OBJECTIVES.
IT'S USED BY INDIVIDUALS, CORPORATIONS, AND GOVERNMENTS.
UH, I THINK THE KEY IS OBVIOUSLY TO USE THAT IN A FINANCIALLY RESPONSIBLE AND PRUDENT MANNER.
AND I BELIEVE AS AN ORGANIZATION THAT WE HAVE DONE THAT, AND THAT HAS BEEN VALIDATED BY OUTSIDE AGENCIES TO INCLUDE RATING AGENCIES.
AND I'LL, AND I'LL TOUCH ON THAT A LITTLE BIT IN THE PRESENTATION, BUT TODAY I DID WANT TO FOCUS ON THE STATUS OF SEVERAL OF OUR PROGRAMS. I'M GONNA SPEND TIME ON A COUPLE OF THEM, UH, A LITTLE MORE TIME ON THEM BECAUSE THEY'VE BEEN MORE, THOSE ARE AREAS THAT HAVE BEEN MORE IMPACTED BY COVID.
SO I'M GONNA TALK WITH YOU A LITTLE BIT ABOUT OUR FINANCIAL STRATEGIES AND SOME OF THE ACTIONS OF WHAT WE'RE BRINGING FORWARD FOR YOU ALL'S CONSIDERATION OVER THE NEXT 12 MONTHS OR SO.
JUST STARTING WITH SOME BACKGROUND INFORMATION, AGAIN, ON THE TYPES OF DEBT THAT WE ISSUE.
GENERAL OBLIGATION BONDS ARE BACKED BY PROPERTY TAXES OR VOTER APPROVED.
THESE ARE THE ONES THAT YOU'RE MOST FAMILIAR WITH, WHERE WE GO OUT AND ASK VOTERS FOR APPROVAL OF PROPOSITIONS TO SUPPORT
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PROJECTS.CERTIFICATES OF OBLIGATION FUNCTION, MUCH LIKE FROM A FINANCIAL MARKET PERSPECTIVE, MUCH LIKE GENERAL OBLIGATION BONDS ARE BACKED BY PROPERTY TAXES.
THEY'RE NOT VOTER, VOTER APPROVED.
HOWEVER, WE HAVE TO FOLLOW A STATUTORY PROCESS AND GIVE, UH, PUBLIC NOTICE, INCLUDING A 45 DAY NOTIFICATION TO LET THE PUBLIC KNOW WHAT PROJECTS WE INTEND TO, UH, FINANCE WITH.
THOSE CERTIFICATES OF OBLIGATION TAX.
TAX NOTES ARE ALSO BACKED BY PROPERTY TAXES, NOT VOTER APPROVE, BUT THEY HAVE A SHORT MATURITY.
THEY CANNOT EXCEED SEVEN YEARS, UH, IN DURATION.
SO THOSE ARE GONNA BE A SHORTER MATURITY, BUT THEY ARE BACKED BY PROPERTY TAXES.
THE LAST CATEGORY IS REVENUE DEBT.
THIS IS DEBT THAT WE'VE GOT A SPECIFIC REVENUE STREAM PLEDGE TO.
GOOD EXAMPLE OF THAT WOULD BE THE AIRPORT WHERE ON THOSE BONDS WE ONLY PLEDGE AIRPORT REVENUES THROUGH REPAYMENT OF THAT DEBT.
AND THEN OF COURSE, THESE ARE NOT VOTER APPROVED.
ON THE NEXT SLIDE ARE, IS THE BOND RATING SCALE USED BY FITCH MOODY'S STANDARD AND PORS, THE THREE MAJOR RATING AGENCIES.
WHAT WE HAVE ON THIS SLIDE FOR YOUR REFERENCE IS JUST RATINGS FOR INVESTMENT GRADE BONDS.
THE LOWEST CATEGORY THERE IS TRIPLE B, THE HIGHEST RATING YOU CAN RECEIVE IS TRIPLE A.
IN TERMS OF OUR CURRENT BOND RATINGS, OUR PROPERTY TAX DEBT, I'M JUST GONNA HIGHLIGHT A COUPLE ON HERE.
OUR PROPERTY TAX DEBT, UM, RATINGS HAVE BEEN REAFFIRMED A COUPLE OF TIMES OVER THE PAST COUPLE OF MONTHS.
OUR AAA WITH MOODY'S AND STANDARD PORES, AS WELL AS OUR AA PLUS WITH FITCH.
I WANT TO HIGHLIGHT HERE THOUGH THAT ALL THREE RATING AGENCIES HAVE THE LOCAL GOVERNMENT SECTOR AS A SECTOR ON NEGATIVE OUTLOOK.
AS WE WENT THROUGH THAT RATING PROCESS OVER THE LAST COUPLE OF MONTHS, SAN ANTONIO WAS ABLE TO COME OUT OF THOSE, NOT ONLY WITH OUR RATINGS REAFFIRM, BUT ALSO HAVING THAT OUTLOOK OF NOT BEING AT NEGATIVE, BUT ACTUALLY BEING AT STABLE.
SO THAT WAS REALLY, UH, GOOD FOR US AND FOR SAN ANTONIO.
THE OTHER ONE I'LL HIGHLIGHT IS THE AIRPORT.
UH, ALL THREE RATING AGENCIES HAVE THE AIRPORT SECTOR, MOST AIRPORTS ON NEGATIVE OUTLOOK, INCLUDING OUR AIRPORT.
IN TERMS OF OUR CURRENT OUTSTANDING DEBT, WE HAVE JUST UNDER $3 BILLION.
THE BIGGEST CATEGORY OF THAT IS PROPERTY TAX DEBT AT 1.9 BILLION.
THE NEXT CATEGORY IS OUR CONVENTION CENTER EXPANSION, DEBT AT FI, JUST OVER HALF A BILLION DOLLARS.
AND THEN YOU SEE THE THREE TYPES OF AIRPORT DEBT THAT WE HAVE OUTSTANDING.
THOSE ARE THE THREE AREAS THAT I'M GONNA FOCUS ON WITH YOU THIS AFTERNOON AS WE GET INTO A LITTLE BIT MORE INFORMATION, UH, A LITTLE, UH, A LITTLE MORE INFORMATION ON THOSE AREAS.
BUT I ALSO DID LIST FOR YOU ON THIS SLIDE THE OTHER CATEGORIES OF DEBT THAT WE HAVE OUTSTANDING.
JUST FOR YOUR REFERENCE, NEXT SLIDE WE'LL TALK ABOUT AND WE'LL GO INTO OUR PROPERTY TAX DEBT.
SO AGAIN, $1.9 BILLION OUTSTANDING.
UH, WE'VE BROKEN IT DOWN BY CATEGORY HERE.
SO YOU CAN SEE GENERAL, GENERAL OBLIGATIONS, CERTIFICATES OF OBLIGATION AND TAX NOTES.
PUBLIC PROPERTY FINANCE, CONTRACTUAL OBLIGATIONS ARE BONDS THAT WE CAN ISSUE PROPERTY TAX BACK, BACK TO, UH, SUPPORT ACQUISITIONS OF EQUIPMENT.
SO WE'VE GOT $11.3 MILLION THERE.
GREAT EFFECTIVE INTEREST RATE ON THIS ENTIRE PORTFOLIO OF JUST, AND OUR AVERAGE LIFE IS 8.2 YEARS AVERAGE.
LIFE, AGAIN, IS A MEASURE THAT LOOKS AT HOW FAST AN ORGANIZATION OR AN ENTITY'S PAYING DOWN PRINCIPLE.
IN SIMPLE TERMS, IF WE WERE TO SAY, I'M GOING TO ISSUE BONDS THAT HAVE A LIFE OF 20 YEARS, THEN THEIR AVERAGE LIFE WOULD BE 10.
PAYING JUST AS MUCH PRINCIPLE IN THE FIRST 10 YEARS AS I AM IN THE SECOND 10 YEARS.
YOU CAN SEE WE'RE IN A VERY GOOD POSITION AT 8.2 YEARS.
THIS IS ONE OF THE THINGS THAT WE MANAGE IN THIS PLAN PLAN.
UM, AS THE ECONOMY'S DOING WELL, WE'LL TRY TO BRING THAT AVERAGE, THAT LIFE DOWN A LITTLE BIT, THAT POSITIONS US.
THEN WHEN THE ECONOMY'S NOT DOING AS WELL, THAT WILL START TO CREEP UP A LITTLE BIT AS WE GO OUT AND DO FINANCING.
SO THAT GIVES US SOME FLEXIBILITY TO KEEP OUR CAPITAL PROGRAMS ON TRACK.
ON THE NEXT SLIDE, WE'LL TALK A LITTLE BIT ABOUT OUR LEGAL CAPACITY.
THERE ARE TWO THINGS WE LOOK AT IN RELATION TO OUR LEGAL CAPACITY.
ONE IS THE CITY CHARTER AND ONE IS STATE LAW.
UNDER THE CITY CHARTER, WE CANNOT EXCEED WITH OUR PROPERTY TAX DEBT OUTSTANDING.
WE CAN'T EXCEED 10% OF OUR TOTAL ASSESSED VALUATION, WHICH IS CURRENTLY $14.1 BILLION.
WE CURRENTLY HAVE $1.9 BILLION OUTSTANDING.
SO YOU CAN SEE WE ARE NOWHERE NEAR THAT LEGAL LIMIT UNDER THE CHARTER.
FROM A STATE LAW PERSPECTIVE, UM, AND A LONGSTANDING ATTORNEY GENERAL OPINION, UH, A, A CITY CANNOT ISSUE OR HAVE A DEBT SERVICE TAX RATE THAT EXCEEDS A DOLLAR 50 CENTS PER $100 OF ASSESSED VALUATION.
OUR CURRENT DEBT SERVICE PROPERTY TAX RATE IS 21 CENTS.
SO WE ARE WELL UNDER THAT LEGAL REQUIREMENT AS WELL.
SO REALLY, WHEN WE TALK ABOUT MANAGING OUR PROPERTY TAX, UH, DEBT PLAN, WE'RE NOT AS FOCUSED ON THE LEGAL
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CONSTRAINTS 'CAUSE WE'RE WELL UNDER THOSE.IT'S REALLY MORE ABOUT OUR FINANCIAL CAPACITY AND MAKING SURE WE ARE DOING, UH, AND PROVIDING A PROGRAM THAT IS BOTH FINANCIALLY RESPONSIBLE.
JUST GIVES YOU A COMPARISON OF OUR AVALOR DEBT PER CAPITA.
THESE ARE THE TOP 10, UH, CITIES IN TEXAS.
THE DATA COMES FROM THE TEXAS COMPTROLLER, AND IT'S AS OF AUGUST OF 2018.
IT LAGS A LITTLE BIT, UH, BUT THIS IS THE MOST RECENT FOR INFORMATION AVAILABLE FROM THAT SITE.
OUT OF THOSE TOP 10 CITIES WERE ONE OF THE LOWEST ON AOR DEBT PER CAPITA.
ON THE NEXT SLIDE, JUST SOME INFORMATION ABOUT SOME RECENT TRANSACTIONS IN THE MONTH OF JUNE.
WE DID MOVE FORWARD WITH A REFINANCING OF BONDS, UH, TO LOWER THE INTEREST COSTS ON THOSE BONDS.
UH, TAKING ADVANTAGE OF THE HISTORICALLY LOW INTEREST RATES THAT WE'RE SEEING.
UH, WE WERE ABLE TO REFINANCE $472 MILLION IN BONDS.
WE ACHIEVED INTEREST COST SAVINGS OF $58.5 MILLION OVER THOSE OVER THE REMAINING 14 YEARS ON THOSE BONDS.
SO THAT'S GREAT NEWS FOR OUR COMMUNITY.
THAT'S $58.5 MILLION LESS IN INTEREST COSTS THAT WE WILL PAY.
UH, ON THE REMAINING TERM OF THOSE BONDS, WE LISTED THEIR NET PRESENT VALUE SAVINGS OF 51.8 MILLION.
WE ALWAYS LOOK AT FROM A FINANCING PERSPECTIVE, PARTICULARLY REFINANCING, WE WANNA MAKE SURE WE LOOK AT IT.
NET PRESENT VALUE IS IN TODAY'S DOLLARS.
WE ALWAYS WANNA MAKE SURE WE'RE TAKING INTO CONSIDERATION THE TIME VALUE OF MONEY.
SO WE ALWAYS TAKE THOSE TRANSACTIONS AND LOOK AT 'EM IN TODAY'S DOLLARS JUST TO MAKE SURE THAT THEY STILL MAKE US MAKE SENSE.
UH, CLEARLY THIS ONE WAS A VERY STRONG TRANSACTION FOR US.
I'M ALSO HAPPY TO TELL YOU THAT TODAY, UH, WE ACTUALLY SOLD $245.1 MILLION IN GEO BOND CERTIFICATES OF OBLIGATIONS AND TAX NOTES.
YOU ALL APPROVED THIS TRANSACTION BACK IN JUNE.
WE PRICED IT TODAY AND JUST WRAPPED IT UP, UH, ACTUALLY ABOUT AN HOUR AND A HALF AGO.
WE'VE GOT A GREAT INTEREST RATE ON THIS ENTIRE, UH, GROUP OF BONDS.
SOME OF THEM ARE, ARE SHORT, SOME ARE LONG, BUT OVERALL, THE TICK OR THE INTEREST COSTS ON THESE BONDS IS 1.88%.
SO WE JUST ISSUED LONG-TERM DEBT FOR 1.88%.
UH, THE PROCEEDS FOR THESE BONDS, UH, AND THIS DEBT IS GONNA BE, UH, THE NEXT INSTALLMENT OF OUR 2017 BOND PROGRAM AND ALSO PROVIDES FUNDING FOR OUR 2020 CAPITAL BUDGET.
ON THE NEXT SLIDE, I'LL JUST TALK ABOUT OUR DEBT MANAGEMENT PLAN VERY QUICKLY.
THERE'S SOME FUNDAMENTAL COMPONENTS THAT WE LOOK AT.
UM, AND FROM A POLICY PERSPECTIVE, A COUPLE OF THINGS I WANNA HIGHLIGHT FOR YOU.
UM, AS WE PUT THIS PROGRAM TOGETHER AND, AND HAVE HAD IN PLACE FOR A NUMBER OF YEARS, ONE OF THE ASSUMPTIONS IS THERE WILL BE NO CHANGE IN THE DEBT SERVICE TAX RATES.
I MENTIONED IT'S 21 SINCE IT'S BEEN 21, SINCE SINCE TWO, SINCE 2004.
SO WE MANAGE OUR CAPACITY TO THAT TAX RATE.
WE MAKE NO ASSUMPTION ABOUT THAT INCREASING IN THE FUTURE.
UM, WE PLAN FOR BOND PROGRAMS EVERY FIVE YEARS.
WE DO THAT FOR PLANNING AND FORECASTING PURPOSES.
OBVIOUSLY, AT THE END OF THE DAY, IT IS YOUR DISCRETION AS TO WHETHER WE MOVE FORWARD WITH A BOND PROGRAM OR NOT.
UH, WE CERTAINLY ARE PLANNING FOR THOSE EVERY FIVE YEARS, BUT THAT IS THE COUNCIL'S DISCRETION.
IN TERMS OF WHEN AND WHETHER YOU MOVE FORWARD WITH THE BOND PROGRAM, THERE ARE SOME OTHER COMPONENTS IN THE PROGRAM THAT WE MANAGE, SUCH AS THE AVERAGE LIFE THAT I TALKED ABOUT.
WE USE MODERATELY CONSERVATIVE REVENUE PROJECTIONS.
AND THEN ONE OF THE BIGGEST ASSUMPTIONS WE MAKE IN THIS PLAN IS THE GROWTH IN TAXABLE VALUATION.
AND I'LL TALK ABOUT THAT IN A LITTLE BIT IN A COUPLE OF SLIDES ON THE NEXT SLIDE.
THERE ARE JUST A COUPLE OF UPDATES WE WANTED TO HIGHLIGHT WITH YOU AS WE, AS WE WENT THROUGH THIS UPDATE THIS SUMMER.
COUPLE OF CHANGES THAT WE INCLUDED.
UM, AND ONE OF THE THINGS THAT IS BEEN IMPORTANT FOR THIS PROGRAM FOR US IS IT DOES GIVE US FLEXIBILITY.
THIS HAS BEEN ONE OF OUR STRENGTHS OVER THE PAST SEVERAL YEARS, THAT AS WE DEAL WITH THINGS ON, ON THE OPERATIONAL SIDE OR CHALLENGES THAT WE HAVE ON THE OPERATIONAL SIDE AND THE GENERAL FUND, OR IF WE HAVE OTHER AREAS OF THE ORGANIZATION THAT NEED, UM, FINANCIAL SUPPORT IN SOME, IN SOME CASES, WE'RE ABLE TO DO THAT THROUGH THIS PLAN.
WHAT'S LISTED ON THIS SLIDE ARE SOME EXAMPLES OF THAT.
AS PART OF THE 2020 ADOPTED BUDGET, UH, WE BUILT IN THE REFINANCING OF $11.5 MILLION IN GENERAL FUND CAPITAL LEASES.
THIS WAS, UH, LEASES THAT WERE DONE TO ACQUIRE CAPITAL.
THEY WERE BEING PAID FOR OUT OF THE GENERAL FUND.
WE REFINANCED THEM AND MOVED THEM INTO THIS PROPERTY TAX DEBT PLAN, UH, IN ORDER TO GIVE US MORE, UH, RELIEF WITHIN THE GENERAL FUND.
ON THE BOTTOM LEFT HAND, UH, SIDE, THERE'S $2.7 MILLION IN DEBT SERVICE THAT WAS DUE FROM H PARK THAT WE'RE GONNA BE PAYING FOR OUT OF THIS PLAN.
AND WE'RE ASSUMING THAT THAT WILL GET PICKED UP IN 2023.
H PARK HAD, UH, WE HAD ISSUED SOME DEBT TO SUPPORT THE PARK.
UH, H PARK'S INTENT WAS TO USE REVENUES THAT THEY WERE GOING TO GET FROM THE P THREE DEVELOPMENT
[00:30:01]
ON THE NORTHWEST CORNER OF THE PROPERTY.THAT, UH, PROJECT HAS BEEN DELAYED, SO THEY DON'T HAVE THE REVENUES IN ORDER TO MAKE THESE PAYMENTS FOR 21 AND 22.
SO WE'VE PICKED THAT UP WITHIN THIS PLAN FOR THE NEXT TWO YEARS.
ON THE RIGHT HAND SIDE, ONE OF THE AREAS THAT WE'VE BEEN MOST IMPACTED BY COVID IS IN OUR HOT FUND.
WE'VE TALKED TO YOU PREVIOUSLY ABOUT THIS AND EVEN AT THE MID-YEAR BUDGET, WHERE WE LOOKED AT PROJECTS THAT WERE GOING TO BE FUNDED WITH CASH OVER THE NEXT TWO YEARS, FY UH, 20 AND 21.
UH, THINGS LIKE RETRACTABLE SEATING AT THE ALAMO DOME IMPROVEMENTS THAT WE NEEDED TO MAKE, UH, TO THE ALAMO DORM IN ORDER TO SUPPORT THE MEN'S FINAL FOUR EVENT.
UM, THOSE WERE TO BE FUNDED WITH CASH.
WE ENDED UP ISSUING DEBT OR PLANNING TO ISSUE DEBT OUT OF THIS PROPERTY TAX DEBT MANAGEMENT PLAN.
WE WILL COVER THAT DEBT THROUGH F Y 2023.
AND THEN OUR ASSUMPTION IS THAT THE HOT FUND WILL HAVE RECOVERED BY THEN AND THEN IT WILL THEN PICK UP THIS DEBT AT THAT POINT IN TIME.
BUT THAT FLEXIBILITY'S, UH, BEEN TR UH, VERY VALUABLE TO US BECAUSE WE'VE HAD, AS WE WENT THROUGH THE SPRAYING AND YOU SAW MUCH OF THE NUMBERS, WE HAD VERY LITTLE INCOME COMING INTO THAT FUND.
WHILE WE CONTINUE TO HAVE FIXED COSTS SUCH AS DEBT SERVICE, AS WELL AS STAFFING AT BOTH OF THOSE BUILDINGS THAT WE HAD TO KEEP IN PLACE IN ORDER TO KEEP THOSE, UH, UH, TAKE CARE OF THOSE BUILDINGS.
BOTTOM RIGHT HAND CORNER IS $12.3 MILLION IN DEBT SERVICE FROM THE ALMA DOME.
THIS WAS DEBT THAT WAS ISSUED SEVERAL YEARS AGO TO SUPPORT THE LAST MENS FINAL OH FOUR.
THE HOT FUND WAS PAYING FOR THIS DEBT.
UH, AGAIN, WITH THE CHALLENGES THERE, WE'VE PICKED IT UP UNDER THIS PROPERTY TAX DEBT PLAN FOR THE NEXT COUPLE OF YEARS.
AGAIN, THE ASSUMPTION IS IN FY 2024 THAT THE HOT FUND WILL PICK THIS DEBT BACK UP.
BUT THIS PROVIDED US A LOT OF FLEXIBILITY AS WE CONTINUE TO LOOK AT, UM, HOW THE HOT FUND WAS BEING IMPACTED BY COVID.
ON THE NEXT SLIDE IS WHEN WE LOOK AT ALL OF THOSE ASSUMPTIONS AND ALL THOSE CHANGES THAT WE HAVE BUILT IN, UH, THESE ARE THE RESULTING, UH, PROJECTIONS, UH, GOING FORWARD IN 2017, YOU CAN SEE OUR $850 MILLION BOND PROGRAM IS UNCHANGED.
SO WE WERE ABLE TO, EVEN THOUGH WE, UH, MAY NOT BE SEEING AS MUCH GROWTH AS WE THOUGHT, WE CONTINUE TO MOVE FORWARD WITH THAT PROGRAM ON SCHEDULE.
UH, YOU'LL NOTE THE BIGGEST CHANGES ARE IN 22 AND 27.
UH, LAST SUMMER OR LAST, YEAH, LAST SUMMER WHEN WE BRIEFED YOU ON THIS PLAN, WE WERE LOOKING AT BOND ELECTIONS IN 22 AND 27, POTENTIALLY OF AROUND 950 MILLION.
YOU CAN SEE THERE ARE LOWER HERE.
THAT IS BASED PRIMARILY ON THE LOWER TAXABLE ASSESSED VALUATION PROJECTIONS THAT WE HAVE IN PLACE RIGHT NOW.
OBVIOUSLY, WE, THE GOOD NEWS IS WE HAVE TIME BETWEEN NOW AND 2022.
WE WILL UPDATE THIS AGAIN NEXT SUMMER.
AND THE NEXT CERTIFIED ROLE WE GET NEXT YEAR WILL BE BASED ON VALUE ON THE GROUND AS OF JANUARY 1ST, 2021.
THAT CERTIFIED ROLE WE GET NEXT SUMMER WILL TELL US A LOT ABOUT, YOU KNOW, WHAT'S GONNA BE HAPPENING WITH VALUES OVER THE NEXT COUPLE OF YEARS, AND THAT WILL THEN HELP US GIVE YOU A BETTER IDEA OF WHAT THE 2022 BOND PROGRAM WOULD LOOK LIKE IF YOU DECIDED TO MOVE FORWARD WITH THAT.
SO I WOULDN'T FOCUS TOO MUCH ON THOSE AT THIS POINT IN TIME.
UM, I WISH I HAD A CRYSTAL BALL AND I COULD TELL YOU EXACTLY WHAT'S GONNA HAPPEN WITH PROPERTY TAX VALUES OVER THE NEXT COUPLE OF YEARS.
UM, A LOT OF THE INDICATORS AND THINGS THAT WE LOOK AT DURING THIS PANDEMIC, UM, HAVEN'T BEEN AS, UM, MEANINGFUL AS WE'VE KINDA LOOKED AT IT, UH, FROM A HISTORICAL PERSPECTIVE.
SO AGAIN, I THINK NEXT SUMMER WE'LL HAVE A MUCH BETTER IDEA OF WHAT THAT POTENTIAL BOND PROGRAM COULD LOOK LIKE.
ON THE NEXT SLIDE, THERE'S SOME PROPOSED DEBT ISSUANCES THAT ARE COMING UP.
WE HAVE THE, UH, FINANCING FOR THE CITY TOWER, UH, NET FINANCING OF $116.5 MILLION.
THAT'S NET OF SOME OF THE CASH THAT WE'RE USING FOR ACQUISITION OF THE OLD FROST TOWER AS WELL AS THE RENOVATION.
YOU RECALL THAT WE DID SOME SALES OF PROPERTY AND WE HAD SOME OTHER SOURCES THAT WE'RE BRINGING IN TERMS OF CASH TO THAT PROJECT.
SO THIS IS THE NET AMOUNT WE NEED TO FINANCE.
IT REFINANCES THE DEBT THAT WE HAD PREVIOUSLY ISSUED, THAT SHORT TERM THAT WE ACTUALLY USE TO BUY THE BUILDING.
AND THEN SECONDARILY, IT'LL FUND THE RENOVATION COST AS WELL.
NEXT SUMMER, WE'LL MOVE FORWARD WITH THE LAST INSTALLMENT OF THE 2017 BOND PROGRAM, UH, AT $156 MILLION.
AND THEN WE GOT, WE HAVE SOME CERTIFICATES OF OBLIGATION AND TAX NOTES, UH, FOR NEXT SUMMER THAT SUPPORT THE CAPITAL BUDGET AS WELL.
BOTTOM LEFT HAND CORNER, I'LL JUST NOTE FOR YOU THAT THROUGH OUR MUNICIPAL FACILITIES CORPORATION, WE HAVE SOME LEASE REVENUE BONDS THAT WERE, THAT WERE ISSUED TO FUND, UH, THE FIRE AND POLICE DISPATCH CENTER, THE PSAP, UM, THEY BECOME CALLABLE NEXT YEAR.
UM, CALLABLE, UH, FROM THE PERSPECTIVE THAT WHEN WE GET TO THE CALL DATE, THOSE ARE THE BONDS THAT WE CAN REFINANCE.
AFTER YOU GET TO THAT, TO THAT DATE, WE WILL
[00:35:01]
EITHER DO A REFINANCING AND KEEP IT AS A MUNICIPAL FACILITIES CORPORATION BOND AND LOWER THE INTEREST COSTS.I THINK INTEREST RATES WILL CONTINUE TO REMAIN LOW OR WE HAVE THE OPPORTUNITY TO POTENTIALLY REFINANCE THAT, MOVE IT INTO THE PROPERTY TAX DEBT PLAN.
UM, THIS DEBT IS CURRENTLY PAID FOR FROM THE GENERAL FUND.
THIS WOULD BE AN OPPORTUNITY TO MOVE IT OVER TO THE PROPERTY TAX SIDE AND, AND REMOVE IT FROM THE GENERAL FUND OPERATING BUDGET.
AND THEN THE LAST THING WE'LL CONTINUE TO DO, BECAUSE WE'RE SEEING HISTORICALLY LOW INTEREST RATES, IS WE'LL CONTINUE TO MONITOR FOR OTHER REFINANCING OPPORTUNITIES ON OUR DEBT, OUR PROPERTY TAX DEBT.
MOVING TO THE NEXT AREA ON THE HOT FUND, WE HAVE JUST OVER A HALF A BILLION DOLLARS OUTSTANDING, UH, ON THE CONVENTION CENTER EXPANSION.
UH, THE IMPORTANT THING I NEED TO NOTE HERE IS THAT THOSE BONDS ARE CALLABLE ON SEPTEMBER OF 22.
SO WE'RE APPROACHING THE CALL DATE.
WE'VE GOT A REALLY LOW INTEREST RATE, SO THERE'S GONNA BE AN OPPORTUNITY THERE HOPEFULLY TO REFINANCE THAT FOR SIGNIFICANT INTEREST COST SAVINGS.
IF WE GO TO THE NEXT SLIDE, THIS GETS A LITTLE BIT INTO THE HOT FUND AND SOME OF THE, SOME OF THE AREAS WHERE WE'VE GOT BONDS OUTSTANDING.
I'M GONNA START ON THE FAR LEFT.
THE, UH, CONVENTION CENTER HOTEL OR THE GRAND HYATT.
UM, THERE WERE BONDS THAT WERE ISSUED TO SUPPORT THE CONSTRUCTION OF THAT HOTEL.
THOSE BONDS, UH, ARE BACKED BY OUR 7% HOT THAT'S GENERATED ONLY AT THAT HOTEL, ALONG WITH OUR 2% HOT THAT IS GENERATED CITYWIDE.
THE DEBT IS SUPPOSED TO BE PAID FOR WITH HOTEL OPERATIONS.
IN THE EVENT OPERATIONS ARE INSUFFICIENT TO COVER THAT DEBT, THEN THOSE TWO PLEDGE REVENUES FROM THE CITY ARE USED TO MAKE THAT DEBT SERVICE PAYMENT.
UH, THIS WITH THE HOTEL OF THE GRAND HYATT DID SPEND OPERATIONS ON MARCH 22ND.
UH, FOR PURPOSES OF THE PROFORMA AND OUR BUDGET FOR NEXT YEAR, WE HAVE ASSUMED THAT THE HOTEL, ONCE IT'S OPEN, UM, AND OBVIOUSLY THIS IS, THIS IS STILL A GUESS AT THIS POINT BECAUSE IT WILL DEPEND HOW THINGS EVOLVE AND HOW EVENTS HAPPEN AT, AT THE CONVENTION CENTER.
UH, BUT OUR ASSUMPTION IS THAT OUR PLEDGED REVENUES WILL BE USED TO MAKE THE DEBT SERVICE PAYMENTS, UH, FOR NEXT FISCAL YEAR.
SO THAT'S THREE POINT MILLION, 3.1 MILLION THAT WE SET ASIDE AN FY 20 AND ANOTHER 10.1 MILLION IN 21.
IF OUR DOLLARS ARE USED TO MAKE THOSE DEBT SERVICE PAYMENTS FOR THE HOTEL, THEY BECOME AN OBLIGATION OF THE PROJECT TO BE PAID TO BE REPAID TO THE CITY IN THE FUTURE.
UH, THE MIDDLE COLUMN IS THE OTHER DEBT THAT I JUST WENT OVER ON SLIDE 11 THAT WE'VE, UH, NOW HAVE IN THE PROPERTY TAX DEBT PLAN.
WE'RE USING PROPERTY TAXES TO PAY FOR THOSE AND CARRY THOSE UNTIL F Y 24, AT WHICH POINT THE HOT FUND WOULD PICK THEM UP.
AND THEN THE LAST CATEGORY THERE IS OUR CONVENTION CENTER BONDS THAT I MENTIONED, THAT JUST OVER HALF A BILLION DOLLARS OUTSTANDING.
THE STRUCTURE OF THOSE BONDS IS THEY'RE INTENDED TO FOLLOW THE GROWTH IN HOT.
SO IT'S GOT A $24 MILLION, UH, DEBT SERVICE PAYMENT IN 21 THAT CONTINUES TO INCREASE.
AND BY THE TIME YOU GET TO 2042 THE LAST YEAR, THOSE BONDS ARE 62.5 MILLION.
I MENTIONED THAT WE ARE IN A HISTORICALLY LOW INTEREST RATE ENVIRONMENT.
UH, WE'RE CERTAINLY GONNA LOOK AT THAT CALL DATE OF SEPTEMBER 22.
UM, AS WELL AS WATCHING THE MARKET VERY CLOSELY.
UH, THERE'S GONNA BE AT SOME POINT, I BELIEVE, A GREAT OPPORTUNITY TO REFINANCE THIS FOR SIGNIFICANT INTEREST COST SAVINGS.
UH, BUT THE OTHER PART IN ADDITION TO HAVING LOW INTEREST RATES IS THAT WHILE OUR BONDS DON'T HAVE A DIRECT HOT REVENUE PLEDGE, UH, WE USE ANY LAWFULLY AVAILABLE REVENUES AS A PLEDGE ON THESE BONDS INVESTORS, WE WOULD HAVE TO DISCLOSE TO INVESTORS THAT WE USE HOT REVENUES TO PAY FOR THIS.
UH, THE APPETITE FOR THOSE INVESTORS IS NOT REAL HIGH RIGHT NOW, UH, GIVEN THE IMPACT TO THAT INDUSTRY.
SO THAT'S SOMETHING WE'RE GONNA HAVE TO WATCH CLOSELY.
THIS WILL BE AN AREA WHERE WE WILL LIKELY COME TO YOU IN THE NEXT, UH, FEW MONTHS UP TO A YEAR AND ASK FOR AUTHORIZATION TO REFINANCE.
WE WILL TEE THAT TEAM UP, UH, WATCH THE MARKET CLOSELY AND WHEN IT MAKES FINANCIAL SENSE TO DO SO, WE WOULD MOVE FORWARD WITH THAT TRANSACTION TO CAPTURE THAT SAVINGS.
WE'LL CONTINUE TO MONITOR THE HOT FUND CLOSELY.
UM, THE OTHER OPTION COULD BE THAT, UM, IF THINGS GET WORSE THAN WE THINK WITHIN THE PRO FORMA, WE WOULD HAVE AN OPPORTUNITY TO, TO DO A SHORT-TERM RESTRUCTURING WHERE WE WOULD JUST TAKE A SMALL AMOUNT OF THE DEBT ON THE FRONT END AND RESTRUCTURE IT WITH THE LOWER INTEREST RATES TO TAKE SOME PRESSURE OFF OF THAT FUND.
WE'LL CONTINUE TO MONITOR, UH, THAT POSITION, OUR LIQUIDITY OR OUR CASH POSITION IN THAT FUND.
BUT THIS IS SOMETHING THAT WE WILL CERTAINLY BRING FORWARD FOR YOUR CONSIDERATION IN THE FUTURE.
UH, MOVING OVER TO THE LAST CATEGORY ON THE NEXT SLIDE IS THE AIRPORT FUND.
WE HAVE $388.4 MILLION OUTSTANDING, UH, IN A COUPLE OF DIFFERENT CATEGORIES.
UH, GENERAL AIRPORT REVENUE BONDS AND OUR PASSENGER FACILITY CHARGE BONDS.
[00:40:01]
THOSE REALLY SUPPORT THE AIRPORT, UM, FACILITIES AND PROPERTY.THE CUSTOMER FACILITY CHARGE BONDS YOU SEE LISTED.
THERE WERE THE BONDS THAT WE ISSUED A FEW YEARS AGO TO SUPPORT THE, UH, CAR RENTAL FACILITY.
ON THE NEXT SLIDE, A COUPLE OF, UH, RECENT TRANSACTIONS ON THE AIRPORT SIDE, AS WELL AS SOME FEDERAL ASSISTANCE IS THAT LAST YEAR WITH LOWER INTEREST RATES, WE WERE ABLE TO REFINANCE ABOUT $178.5 MILLION IN BONDS.
WE CAPTURE $35.6 MILLION IN TOTAL INTEREST COST SAVINGS OF THE LIFE OF THOSE BONDS IN TODAY'S DOLLARS.
UM, IN TERMS OF THE AIRPORT ITSELF, AS YOU ALL KNOW, THE MASTER PLAN IS ON PAUSE MAINLY DUE TO COVID.
UH, THAT MASTER PLAN WILL OBVIOUSLY HELP DEFINE WHAT THE CAPITAL PLAN IS FOR THE AIRPORT GOING FORWARD.
ONCE WE UNDERSTAND WHAT THE CAPITAL PLAN IS AND WHAT THE TIMING IS, THEN WE WOULD BE ABLE TO PUT A FINANCING PLAN IN PLACE.
SO WE'RE IN A BIT OF A HOLDING PATTERN ON THE AIRPORT, UH, CURRENTLY.
SO OUR GOAL IS TO WORK WITH JESUS AND THE AIRPORT TEAM, UM, TO FUND ESSENTIAL CAPITAL PROJECTS.
AND HE IS DONE A REALLY GOOD JOB OF PRIORITIZING THOSE PROJECTS THAT WE NEED TO MOVE FORWARD WITH TO KEEP THE AIRPORT OPERATIONAL.
UM, AND WE'RE USING INTERIM FINANCING IN SOME CASES TO DO THAT.
UH, WE'VE GOT A HUNDRED MILLION DOLLARS, UH, INTERIM FINANCING IN PLACE FOR THE AIRPORT.
WE'VE ONLY DRAWN 36 MILLION OF THAT.
UH, SO WE'VE GOT THE REMAINDER LEFT TO SUPPORT THE AIRPORT.
YOU ALL DID APPROVE AN EXTENSION TO THAT INTERIM FINANCING IN JUNE.
SO THAT GIVES US ADDITIONAL FLEXIBILITY.
UH, WE'LL CONTINUE TO MONITOR OUR LIQUIDITY OR CASH POSITION ON THE AIRPORT AS WELL, AND WE'LL ADJUST ACCORDINGLY.
THIS INTERIM FINANCING NOTE DOES GIVE US FLEXIBILITY.
ONCE THE MASTER PLAN IS DONE AND WE PUT A PERMANENT FINANCING PLAN IN PLACE, THIS WILL BE TAKEN OUT AND REFINANCED, AND THEN WE'LL PUT THE PERMANENT STRUCTURE IN PLACE.
BUT UNTIL WE HAVE MORE CLARITY AROUND THAT CAPITAL PLAN, UH, THIS INTERIM TOOL, UH, IS REALLY IMPORTANT FOR US.
UH, THE LAST BOX THERE JUST TALKS ABOUT THE $50.6 MILLION IN CARES ACT FUNDING.
UH, SOME OF THAT IS VERY FLEXIBLE.
WE'RE ABLE TO USE THAT TO OFFSET SOME OF OUR OPERATIONAL COSTS, UM, AS WELL AS SOME OF OUR DEBT SERVICE COSTS.
SO THAT HAS BEEN IMPORTANT AS WELL AS SOME OF THAT HAS REIMBURSED US FOR MATCHING REQUIREMENTS ON FEDERAL GRANTS.
SO ALL OF THOSE THINGS HAVE HELPED, UM, MAINTAIN THE IMPORTS AIRPORT'S FINANCIAL POSITION AS IT HAS BEEN ALSO SIGNIFICANTLY IMPACTED BY.
UH, SO WITH THAT, UH, MAYOR AND COUNCIL MEMBERS, THAT CONCLUDES MY PRESENTATION AND RAZZIE ROD AND I WOULD BE HAPPY TO ANSWER QUESTIONS.
UH, BEN, UM, AS WELL AS RAZZIE FOR, UH, FOR THE PRESENTATIONS, A LOT TO UNPACK HERE.
UM, AS A REMINDER TO MY COLLEAGUES, PLEASE USE THE RAISE HAND BUTTON ON THE WEBEX, UH, TO GET IN THE QUEUE.
UM, I ONLY REALLY HAVE ONE QUESTION AND, AND I THINK MAYBE THIS IS MORE FOR ERIC THAN ANYONE.
UM, ERICA, WHAT ARE WE DOING AND, AND HOW CAN WE, UH, GET A PICTURE OF HOW CAPITAL PROJECTS ARE BEING ACCELERATED, UH, IN THE CURRENT, IN THE COMING FISCAL YEAR? YEAH, UH, WELL, MAYOR, YOU KNOW, WE TALKED ABOUT THAT IN JUNE WHEN WE DID THE WORK SESSION AND, UM, I THINK WE IDENTIFIED 17 PROJECTS THAT WE WERE LOOKING TO ACCELERATE.
AND, YOU KNOW, MAYOR, MAYBE THAT WAS SOMETHING WE PROBABLY SHOULD HAVE INCLUDED.
WHAT WE'LL DO IS WE'LL RE ENCAPSULATE THAT INFORMATION AND THOSE PROJECTS AND THE TIMELINE AND SEND THAT TO COUNCIL, UH, IN A MEMO BECAUSE WHAT, WHAT PUBLIC WORKS, UH, WHAT I ASKED PUBLIC WORKS TO DO, UH, TOWARDS THE END OF SPRING WAS TO IDENTIFY THOSE PROJECTS THAT ARE GOING TO CONSTRUCTION OR NEARING THE END OF DESIGN AND, AND SEE WHERE WE CAN ACCELERATE.
UH, WE ARE, UH, THE COUPLE OF PROJECTS THAT HAVE GONE OUT TO BID.
WE'RE SEEING GOOD PRICES IN TERMS OF CONSTRUCTION AND UH, WE, WE WANT TO TAKE ADVANTAGE OF THAT.
ERIC, MAY I ADD TO THE BIT? YEAH, ROGER, GO AHEAD.
YEAH, WE HAD AT REQUESTS OF THE CITY MANAGER IN SUMMERTIME, WIND UP EXPEDITING NUMBER OF OUR PROJECT AND WE ARE GOING TO ADVERTISE IN NEXT 12 MONTHS ALTOGETHER 17 PROJECT AT THE VALUE OF $84 MILLION.
WE ARE PUSHING OUT, AND ERIC IS CORRECT, WE HAD A FIRE STATION 24 IN COUNCIL DISTRICT TWO, WE RECEIVED THREE BIDS, 13 BIDS IN THE PAST.
WE USUALLY USED TO GET FIVE OR SIX BIDS.
WE ARE GETTING BETTER PRICES AND ALSO MORE CONTACTORS BID OUR PROJECT.
WE ARE IN VERY GOOD SHAPE PUSHING THIS PROJECT OUT.
AND OF COURSE, NEXT, NEXT 12 MONTHS, WE ARE GOING TO PUSH OVER QUARTER MILLION DOLLAR OF PROJECT 256 MILLION WILL BE
[00:45:01]
ADVERTISING AND GOING CONSTRUCTION LAST THURSDAY, CONCEPT APPROVED, NUMBER OF THE PROJECTS CEILING CHANNEL 1, 1, 1 OF THE LARGE PROJECT.WE ARE GOING TO START CONSTRUCTION ON THOSE PRETTY SOON.
AND THAT'S, UH, THAT'S ALL GREAT NEWS OBVIOUSLY THAT, THAT, UM, KIND OF ECONOMIC ACTIVITIES IS HELPFUL WHEN THERE'S SUCH A DOWNTURN AND, AND CERTAINLY WITH THE COST OF MONEY BEING WHAT IT IS, WE SHOULD TRY TO DO THAT AS MUCH AS WE CAN.
HAVE YOU EVER, UM, HAVE WE EVER PUT OUT, UH, FOR DEBT AND RECEIVED, UH, A BELOW 2% INTEREST ON, ON THAT SIZE OF AN ISSUING? NOT THAT I CAN RECALL, MAYOR, THAT THIS IS REALLY A, A HISTORICALLY LOW INTEREST RATE ENVIRONMENT THAT WE'RE, THAT WE'RE OPERATING IN.
SO ISSUING LONG-TERM DEBT AT 1.88%, UH, I CAN'T REMEMBER ANOTHER TIME I'VE DONE THAT.
WELL, I, AND I, I KNOW IT PAYS, UH, OFF WHEN WE'VE, WHEN WE'RE IN A DIFFICULT STRETCH, UH, TO BE, TO HAVE THAT KIND OF FLEXIBILITY AND TO BE AGGRESSIVE WHEN WE CAN, UH, TO BE ABLE TO QUANTIFY, UH, THAT KIND OF COST SAVINGS FOR THE TAXPAYER, I THINK WOULD BE, UH, SOMETHING HELPFUL FOR US TO TALK ABOUT.
MAYBE NOT RIGHT NOW, BUT, UM, THOSE SMALL THINGS THAT DON'T ALWAYS GET WRITTEN ABOUT HAVE DONE A TREMENDOUS JOB IN, IN SAVING, UH, RESIDENTS MONEY AND, AND MAKING GOOD USE OF THE RESOURCES THAT WE DO HAVE.
ALRIGHT, LET ME GO TO COUNCIL MEMBER GONZALEZ.
SO NOW THESE TWO, UH, DEPARTMENTS ARE COMPLETELY SEPARATE.
IS THAT RIGHT? BASED ON THE PRESENTATION TODAY, THEY NOT QUITE, WE'RE, WE'RE GONNA COMPLETELY SEPARATE THEM WHEN WE HIRE THE DIRECTOR.
AND, UH, RIGHT NOW THAT POSITION IS BEING ADVERTISED, SO WE'RE LOOKING TO MAKE A SELECTION BY, UH, NOVEMBER.
ONCE THAT POSITION COMES ON BOARD, THEN WE WILL DEFINITELY SEPARATE THE, THE FUNCTIONS.
UM, SO I, I GUESS, BUT ALTHOUGH I DID HEAR, I KNOW THAT THERE, WE HAD TALKED, YOU KNOW, PRE COVID I, UH, ABOUT, UH, THAT POSITION AND, AND, AND KIND OF SEPARATING THE TWO DEPARTMENTS.
UM, BUT I KNOW THAT, YOU KNOW, MY UNDERSTANDING WE WERE IN HIRING FREEZE, BUT I, I THOUGHT I HEARD ROZY AND ROD BOTH MENTIONED ADDING POSITIONS.
SO, UM, WHERE, WHERE DOES THAT LEAVE US, ERIC? OR I DON'T KNOW WHO WHO ANSWERS THAT, BUT I, I THOUGHT I HEARD ROZY SAY 13 POSITIONS.
NO, WE'RE NOT, WE'RE NOT ADDING ANY POSITIONS THAT, THE POSITIONS THAT, UM, BOTH ROD AND ROSIE TALKED ABOUT.
WE MOVED THREE POSITIONS FROM PUBLIC WORKS TO DEVELOPMENT SERVICES.
WE MOVED, UH, POSITIONS FROM, FROM, UH, PUBLIC WORKS INTO FINANCE PROCUREMENT, SO THAT WE, UH, HAD ONE PLACE IN THE CITY THAT WAS HANDLING ALL PROCUREMENTS.
THAT WAS A TOTAL OF 13 POSITIONS.
AND THEN WE MOVED 13 POSITIONS FROM PUBLIC WORKS OUT INTO THE NEW TRANSPORTATION DEPARTMENT.
BUT WE DIDN'T, UH, THE, THE PROPOSED BUDGET IN, IN ANY, IN ALL OF THOSE AREAS ARE ONLY TALKING ABOUT EXISTING POSITIONS AND WE'RE NOT ADDING.
AND THEN, UM, JUST EVEN REGARDING THE POSITION, UH, THAT I DID SEE POSTED AND, UM, YOU KNOW, THERE, THERE'S NO MENTION OF COMPLETE STREETS IN THAT POSITION.
UH, AND YOU KNOW, WE DID RECEIVE AN AWARD, A GOLD STANDARD AWARD FOR COMPLETE STREETS, WHICH I HAVE TO ADMIT I WAS VERY SURPRISED TO SEE.
UM, BUT PERHAPS, UM, AFTER MY CONVERSATIONS, WE COULD TALK A LITTLE BIT ABOUT WHAT THAT COMPLETE STREET GOLD STANDARD MEANS.
UM, BECAUSE, UH, OF COURSE WE, IN, IN MY VIEW, WE STILL HAD A LONG WAY TO GO.
WE HAVEN'T HAD HARDLY ANY BIKE LANES OR, OR, UH, IN THE DISTRICT OR GIVEN MANY AL ALTERNATIVES IN THE DISTRICT FOR MANY, MANY YEARS, AT LEAST IN MY DISTRICT.
UM, AND, AND SO THEN JUST, IT GOES BACK TO ANOTHER QUESTION I HAD.
SO WE DO CONTINUE TO SEE A LOT OF WORK IN THE NEIGHBORHOODS AND, UM, YOU KNOW, WE'RE GRATEFUL FOR THAT.
STILL LOTS OF SIDEWALKS COMING ON, UM, SOME STREET MAINTENANCE, BUT EVERY TIME I'VE STOPPED TO TALK TO THE PEOPLE DOING THE WORK, THEY SEEM TO BE, UH, OUR DEPARTMENT, OUR, OUR OUR, I KNOW THAT WE HAVE OUR OWN CONTRACTORS, UH, AND WE HAVE THEN, UM, UH, OUT, YOU KNOW, THE WAY THAT WE OUTSOURCE.
[00:50:01]
UM, WHAT, I GUESS WHAT'S THE DIFFERENCE? UM, I THINK WHEN WE'RE, UH, UH, HOW, HOW DO YOU DETERMINE IF THOSE PROJECTS GET DONE IN-HOUSE OR IF THEY GET OUTSOURCED? MAY I RESPOND, ERIC, FOR THAT, PLEASE.ON A COUNCILWOMAN ON A SIDEWALK REPAIR, LAST YEAR WE GOT A BUDGET TO HIRE SEVEN CREW.
ALL OF THE SIDEWALK REPAIR IS DONE BY US.
HOW WE DECIDED, BECAUSE MOST OF THE TIME THESE REPAIR IS A SMALL AMOUNT WORK IS CONTRACTED, REALLY NOT INTERESTED TO DO THESE WORK.
AND IT'S MUCH, MUCH EASIER AND PRACTICAL FOR US TO DO.
WE DO LIMITED STATE MAINTENANCE.
MAJOR MAJORITY OF THE STATE MAINTENANCE WORK IS DONE BY THE CONTRACTOR, BUT WE DO SOME IN-HOUSE ALSO.
OUR BUDGET FOR STATEMENT IS 12 MILLION FROM 1 0 2.
THAT MEANS REALLY 90 MILLION GOES TO PRIVATE CONTRACTOR.
OF COURSE, WE MANAGE THOSE CONTRACTOR.
YOU MAY SEE OUR INSPECTOR OR OUR SUPERVISOR ON THE SIDE, BUT WORK IS BEING DONE BY THE CONTRACTOR.
AND, UM, YOU KNOW, I I, I FEEL LIKE I'VE SEEN BOTH, UH, BUT IT SEEMS LIKE, UH, AND I, I TRY TO STOP AND SAY HELLO, UM, TO, UH, THE PEOPLE THAT ARE DOING THE WORK AND, UM, UH, WE, YOU KNOW, AS THE COMMUNITY SEEMS SATISFIED WITH BOTH, SO I THINK THAT'S A GOOD SIGN.
UM, BUT I JUST WONDERED IN THIS TIME WHERE WE KNOW THAT WE HAVE, UM, A LOT OF PEOPLE BEING LAID OFF, UH, YOU KNOW, IS, IS ONE MORE BENEFICIAL THAN THE OTHER? I DON'T REALLY KNOW THE ANSWER TO THAT QUESTION.
I JUST WONDER, UM, I KNOW THAT IN MY DISTRICT, UH, YOU KNOW, PEOPLE ARE VERY PROUD TO WORK FOR THE CITY OF SAN ANTONIO.
AND, UM, I KNOW OVER MANY YEARS WE'VE CUT SOME OF THOSE JOBS.
UH, BUT I AM PROUD TO SEE, UM, MANY OF THOSE WORKERS AS CITY OF SAN ANTONIO WORKERS.
OF COURSE, THE SMALL BUSINESS PIECE IS ALSO VERY IMPORTANT.
SO, UM, I WON'T SPEND TOO MUCH TIME ON THAT.
UM, BUT, UH, I'M JUST GLAD TO SEE THE WORK CONTINUING TO BE DONE.
UM, AND I FEEL LIKE WE'RE OVERCOMING SOME OF THOSE INITIAL BARRIERS THAT WE HAD ABOUT COMMUNITY INPUT.
'CAUSE WE KNOW THAT WE'VE GOT TO DO COMMUNITY INPUT FOR THESE PROJECTS.
BUT, UM, YOU KNOW, I I FEEL LIKE WE PUT SOME OF IT ON HOLD EARLY ON 'CAUSE WE THOUGHT, WELL EVENTUALLY WE'RE GONNA GO BACK, WE'LL START SEEING EACH OTHER.
BUT I FEEL LIKE WE'VE ADAPTED PRETTY WELL TO THAT.
I MEAN, SO I, I SAY THIS, UM, I I I, I THINK IT'S PRAISING YOU GUYS.
I HAVEN'T HEARD ANY COMPLAINTS LATELY.
SO, UM, OR AS MANY COMPLAINTS LATELY ABOUT STREET MAINTENANCE PROJECTS.
SO I THINK THAT'S A GOOD SIGN.
UM, I ALSO THINK PERHAPS, UH, THERE ARE OTHER THINGS HAPPENING EVEN REGARDING THE HOMELESS SITUATION, UM, THAT ARE MUCH MORE VISIBLE NOW THAT PEOPLE DIDN'T COMPLAIN ABOUT, THAT THEY'RE COMPLAINING ABOUT NOW.
SO YOUR, THE SIDEWALKS AND THE STREET MAINTENANCE IS, UH, SORT OF, UM, TAKING A, A SIDE NOTE TO THAT.
SO, UM, AND I GUESS, UH, JUST BEN, REGARDING YOUR PRESENTATION, UM, THAT, UM, UH, YOU MENTIONED ABOUT THE HOT TAX AND I KNOW THAT WE'VE ALL BEEN SORT OF GRAPPLING WITH THAT AND, AND, UM, YOU KNOW, EVEN IN MY COMMENTS LAST WEEK REGARDING, UM, THE CONVENTION CENTER AND WHAT REALLY DOES APPEAR TO BE, UH, I MEAN, WHAT MAY BE A VERY SLOW RECOVERY IN THAT, COULD WE GET A, UM, SOME, UH, YOU KNOW, PERHAPS SOME ALTERNATIVE USES FOR THE CONVENTION CENTER.
UM, SEEMS LIKE HAVING A VACANT BUILDING IS A VERY BAD IDEA.
UM, AND SO IT'S MORE, UM, YOU KNOW, PERHAPS, UH, I, I GUESS IT'S A TWOFOLD QUESTION.
WHAT OTHER ALTERNATIVES ARE THERE? AND THEN, UH, GIVEN THE DEBT THAT WE HAVE AND, UM, GIVEN THE POTENTIAL SLOW RECOVERY AND HAVE WE COME UP WITH ANY ALTERNATIVES TO FUND THE HOT TAX BEYOND THE GENERAL FUND.
BEN, I'LL LET YOU, UH, LET, LET ME ANSWER THE FIRST PART OF THE QUESTION TOMORROW, COUNCILWOMAN, PATRICIA WILL BE GIVING HER BUDGET PRESENTATION AND WE CAN, WE CAN PROBABLY TALK A LITTLE BIT MORE DETAIL ABOUT THE CONVENT CENTER AND AT LEAST THE, THE PLANS THAT WE HAVE FOR 2021, KNOWING WHAT WE KNOW RIGHT NOW.
UM, AND, AND BEN, IF YOU WANT TO HANDLE THE, THE REVENUE QUESTION TO THE COUNCILMAN'S POINT, UH, YES.
AND SO ON THE CONVENTION CENTER DEBT SIDE, WE'RE LOOKING AT A COUPLE OF THINGS.
UM, SO RIGHT NOW THE FUND IS BALANCED BASED ON WHAT WE'VE PROJECTED, UH, BUT WE ARE LOOKING AT, BECAUSE OF THE VERY LOW INTEREST RATE ENVIRONMENT, THERE IS AN OPPORTUNITY TO REFINANCE THAT DEBT.
UM, PART OF IT IS WE'RE GONNA NEED TO SEE A LITTLE BIT OF A RECOVERY IN THE HOTEL SECTOR, UM, BECAUSE INVESTORS ARE GONNA WANT TO SEE THAT BEFORE THEY REINVEST IN THAT TYPE OF BOND.
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LIKE INTEREST RATES ARE GONNA STAY LOW FOR A PERIOD OF TIME THAT WILL ALLOW US TO LOWER OUR DEBT SERVICE PAYMENTS.UM, AND WE'RE TALKING ABOUT REFINANCING THE WHOLE $541 MILLION IN, IN OUTSTANDING DEBT.
THE SECOND THING WE'RE LOOKING AT COUNCILMAN, IS IN ORDER TO GIVE US ADDITIONAL FLEXIBILITY IF WE HAVE TO, DOING A SHORT TERM RESTRUCTURING.
SO WE TAKE THE DEBT SERVICE PAYMENTS FOR THE NEXT COUPLE OF YEARS AND I REFINANCE OR RESTRUCTURE THOSE TO GIVE US ROOM.
SO THOSE ARE THE TWO THINGS WE'RE LOOKING AT.
UM, THANK YOU VERY MUCH FOR THE PRESENTATIONS AND UM, UH, I'LL TURN IT OVER.
COUNCIL MEMBER GONZALEZ, UH, COUNCIL MEMBER ANDREW SULLIVAN.
UH, THANK YOU MAYOR, AND THANK YOU RAZZIE.
UM, QUESTION THAT I HAVE IN RELATION TO, UH, PAGE 26 ON THE PRESENTATION, UH, BELIEVE UNDER TRANSPORTATION OR IT MIGHT BE UNDER VISION ZERO, AND, UM, WITH THE 1 MILLION FY 20, 21 AND FIVE PROJECTS TO BE DEVELOPED, UM, DO WE HAVE ANY INFORMATION ON WHAT THOSE PROJECTS ARE OR WHERE THOSE PROJECTS WILL BE? COUNCILWOMAN? NOT YET.
WE ARE GOING TO WORK WITH YOUR OFFICE AND COMMUNITY AND CREATE THOSE PROJECTS.
WE USUALLY DESIGN THEM ONE YEAR AND BUILD IN THE NEXT FOLLOWING YEAR.
AND THEN, UM, THEN IT COMES TO COUNCIL.
DID, DID YOU HAVE, DID YOU HAVE A SUGGESTED AREA THAT MAYBE WAS, UH, THAT, THAT, THAT YOU WERE THINKING ABOUT? UM, I WAS THINKING MAYBE ALONG THE CORRIDOR OVER BY, UH,
THAT AREA IS, IS BECOMING MORE OF A, A TOURISTIC KIND OF AREA.
AND THEN VELOCITY, TEXAS IS ALSO IN THAT AREA, SO WE KNOW A LOT OF PEOPLE ARE MOVING INTO, UM, THE DISTRICT FOR THOSE OPEN JOBS.
AND SO, UM, I KNOW THAT THAT'S AN AREA I LIKE TO LOOK AT AS WELL.
ZI, WHAT WAS THAT? YEAH, WE MAKE THE NOTE.
ALRIGHT, THANK YOU SO MUCH RAZZIE.
UM, BEN, I JUST WANTED TO ASK, WITH A LOT OF CITIES BEING IN A POSITION OF UNCERTAINTY, UNCERTAINTY AND STRAITS AND OUR BUDGETS BEING ALL KIND OF, UM, OFF AT THIS PRESENT MOMENT, UM, OUTSIDE OF THE RESTRUCTURING, WHAT OTHER, UM, INITIATIVES HAVE BEEN LOOKED AT WHEN IT COMES TO, UM, THE BEST WAY TO DO, UH, CITY BONDS? UM, I THINK THE THINGS THAT WE'RE FOCUSED ON THE MOST IS JUST TRYING TO TAKE ADVANTAGE OF THE MARKET.
SO AS THE MARKET INTEREST RATES HAVE FALLEN, WE'VE LOOKED FOR THOSE REFINANCING OPPORTUNITIES.
UH, THE GENERAL OBLIGATION ONE WE DID, UH, WE'RE CERTAINLY FOCUSED ON THE CONVENTION CENTER.
ONE, I MENTIONED THAT WE'RE, WE'RE HOPEFUL THAT, UM, INTEREST RATES STAY LOW THERE AND THAT INVESTORS WILL GET INTERESTED IN THAT TYPE OF BOND.
I THINK THERE'S A GREAT OPPORTUNITY THERE TO CREATE SOME SAVINGS FOR THAT FUND LONG TERM AND POSITION THE CITY LONG TERM FOR MAYBE THE NEXT EXPANSION OF THE CENTER WHENEVER THAT HAPPENS.
SO WE'VE GOTTA BE ABLE TO, TO MAKE SURE WE'RE MAINTAINING FLEXIBILITY.
UM, ON THE LEGISLATIVE SIDE, I'LL MENTION ONE THING.
THERE WAS A BILL FILED, UH, COUNCILMAN, I BELIEVE ABOUT TWO MONTHS AGO MAYBE, UH, THAT WOULD'VE PUT BACK IN PLACE OUR ABILITY TO DO ADVANCED REFINANCINGS WITH TAX EXEMPT DEBT.
THAT WOULD BE ANOTHER WAY TO GENERATE INTEREST, COST SAVINGS.
I DON'T THINK THAT BILL HAS MOVED YET, BUT WE CURRENTLY CLOSELY COORDINATE WITH JEFF AND HIS TEAM AND WE'RE WATCHING THAT.
THAT'S THE INFORMATION I WAS LOOKING FOR.
I WAS WONDERING WHERE THAT BILL WAS AT THIS TIME.
UM, THOSE ARE ALL THE QUESTIONS THAT I HAVE.
COUNCIL MEMBER ANDREW SULLIVAN, COUNCIL MEMBER ROCHE GARCIA.
AND THANK YOU ROSIE AND BEN FOR YOUR PRESENTATIONS.
UM, I HAVE A, A QUICK QUESTION.
WELL, FIRST OF ALL, RAZZI, CONGRATULATIONS.
I SAW THAT YOU ALL HAD EXCEEDED YOUR MILES OF CONSTRUCTED OR IMPROVED, UH, SIDEWALKS BY 23 MILES.
SO THAT, UM, THERE'S GREAT NEWS AND I JUST WANTED TO MAKE SURE THAT I, I GAVE YOU KUDOS ON THAT TO YOUR TEAM.
UH, ON THE ESSAY BIKES, EDUCATION AND OUTREACH, I KNOW THAT WE'RE HIRING A DIRECTOR RIGHT NOW OF TRANSPORTATION THAT I'M ASSUMING WILL BE, UH, INFLUENCED BY THE MICRO MICRO MOBILITY MASTER PLAN UPDATE.
MY QUESTION IS, WILL WE WAIT TO UPDATE THAT PLAN UNTIL WE GET THE NEW TRANSPORTATION DIRECTOR OR IS THAT SOMETHING THAT'S GOING ON? NO,
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IT IS.WE ALSO GOT 1 MILLION IN, IF BY 20 AND WE ARE USING THAT ONE.
WE ARE NOT WAITING ON NEW DIRECTOR, NEW DIRECTIVE.
HOPEFULLY WE CAN FINALIZE THIS IN PLANNING, BUT WE ARE MOVING FORWARD.
SO MAYBE I CAN GET AN UPDATE FROM TIM HAYES, UM, WHEN YOU ALL GET A CHANCE.
UH, BECAUSE I MET WITH HIM, UH, I GUESS LAST YEAR WHEN I STARTED.
AND SO, UM, I WANTED TO BIKE RIDE TO MY OFFICE AND SO HE LITERALLY DROVE WITH ME AND TOLD ME IT WOULDN'T BE SAFE TO DO SO, AND I SAID HOPEFULLY ONE DAY THAT CAN BE CHANGED.
UM, BUT IT, IT, IT MADE ME REALIZE THAT THERE WAS A LOT IN THERE THAT WE COULD DO, UH, INVOLVING TECHNOLOGY.
I HAD MENTIONED AT THE TIME AN APP, UH, THAT I THOUGHT I THOUGHT WOULD BE USEFUL TO A LOT OF OUR RESIDENTS AND IDENTIFYING WHERE, UM, SOME OF THE TRAILS ARE AND WHERE THEY COULD CONNECT, ET CETERA.
AND SO I'D LIKE TO ASK IF THERE'S BEEN ANY, UM, MOVEMENT OR IF THERE'S ANY IDEAS REVOLVING AROUND THAT ON THE NEW BIKE EDUCATION AND OUTREACH PLAN.
AND THEN ALSO, CAN YOU TELL ME, ROSIE, WHERE THE, THE TWO NEW REGIONAL CENTERS, OR REMIND ME, I THINK YOU MIGHT HAVE MENTIONED IT ON PAGE 63, AND ACTUALLY I THINK IT MIGHT HAVE BEEN ROD, UH, THE TWO REGIONAL CENTERS THAT WE'RE TALKING ABOUT IN, IN THE BUDGET.
WAS IT THE SHARE YOUR STREETS? IS THAT WHAT YOU WERE TALKING ABOUT? SHARE? NO, IT WAS, UH, SPECIFICALLY, UM, IN OUR BUDGET BOOK ON PAGE 63, IT SAYS THAT THE BICYCLE PROGRAM, THE BIKE PROJECTS WILL INCLUDE THE CREATION OF TWO REGIONAL CENTER PLANS, INCLUDE, AND THEN TALKS ABOUT MAINTENANCE AND ENHANCED STREET MAINTENANCE PROJECTS, ET CETERA.
BUT I WAS WONDERING WHERE THE TWO REGIONAL CENTERS WERE GOING TO BE LOCATED.
I THINK YOU'RE LOOKING COUNCIL, AND IF I AM FOLLOWING YOU CORRECTLY, DOWNTOWN AND MID MIDTOWN REGIONAL CENTER IMPLEMENTATION PLAN.
OUR BIKE MASTER PLAN WAS DONE IN 2011, AND IT REALLY WASN'T TOO DETAILED.
THERE WAS A LOT LINE ON THE MAP.
WE JUST COULDN'T FOLLOW THAT ONE ON BUILD BIKE LANE.
WE DECIDED READY THEN UPDATING WHAT WE HAD VERY LARGE MAP LAST YEAR BUDGET.
WE ARE LOOKING DOWNTOWN AND MIDTOWN REGIONAL CENTER IMPLEMENTATION PLAN.
YOU ROSIE? UH, I, I JUST WASN'T SURE AND IT WASN'T REFERENCED.
I DIDN'T KNOW IF I HAD MISSED SOMETHING.
AND SO OTHER THAN THAT, UM, I, UH, WE HAVE, UH, IN MY OFFICE, SO WE HAVE DISTRICT FOUR IN PEA OR, OR PIERCE PARK DISTRICT FOUR.
AND SO I KNOW STORM REACHED OUT TO US ABOUT, UM, A MOUNTAIN BIKE, UH, TRAIL BASICALLY.
AND I KNOW THAT, YOU KNOW, WE'RE TRYING TO WORK WITH THEM TO SEE IF WE CAN HELP WITH SOME ADDITIONAL GRANTS.
AND SO I'M JUST EXCITED THAT THERE'S SEEMS TO BE SOME MOVEMENT.
AND I'M, I'M HAPPY THAT THE TRANSPORTATION DIRECTOR AND THE ANNOUNCEMENT, IT TALKS, THERE'S, IT'S VERY SPECIFIC TO, UM, AS WELL AS BIKE LANES.
I KNOW A LOT OF MY RESIDENTS ARE INTERESTED IN THAT AS WELL.
SO JUST WANNA THANK YOU FOR ADDING UP, TAKING THE TIME TO CONSIDER THAT TO, UM, BOTH YOU, ZI AND ROD.
COUNCIL MEMBER ROCHA GARCIA, UH, COUNCIL MEMBER PERRY.
UM, UH, I ALSO HAD QUESTIONS ABOUT THE PERSONNEL, BUT YOU ANSWERED THAT, UH, CAPITAL PROJECTS.
UM, I HAD ASKED FOR A LIST OF ALL THE CAPITAL PROJECTS HERE IN TOWN.
I, I THINK, UH, I THINK WE ALL NEED TO TAKE A LOOK AT THAT.
AND REASON, REASON BEING, I, I KIND OF RAISED MY EYES ON ONE OF THE PROJECTS THAT IS LISTED RIGHT NOW.
YOU KNOW, WE, WE'VE GONE THROUGH TI TIGHTENING OUR BELTS IN A LOT OF DIFFERENT AREAS, BUT I SAW ONE OF THE PROJECTS, OR IT WAS BRIEFED TO ME THAT WE'RE REPAINTING THE, THE MAIN LIBRARY DOWNTOWN.
I KNOW IT DOESN'T LOOK THE BEST.
IT'S GOT SOME ISSUES, BUT DO WE HAVE, I I THINK IT WAS LIKE $2 MILLION TO PAINT THAT BUILDING.
DO WE HAVE TO DO THAT THIS NEXT YEAR? CAN WE PUT IT OFF A YEAR OR, YOU KNOW, TO USE THAT MONEY THIS YEAR WHERE WE REALLY NEED THAT MONEY? AND, AND THAT'S THE KIND OF THING THAT I'D LIKE TO TAKE A LOOK AT THAT WHOLE LIST OF CAPITAL PROJECTS TO MAKE SURE THAT, YOU KNOW, WE ARE, AND I'M NOT SAYING YOU HAVEN'T PRIORITIZED AND, AND PUT FORTH THE PROJECTS THAT REALLY NEED TO BE DONE, BUT I THINK WE ALL AS COUNCIL MEMBERS NEED TO SCRUB THAT LIST AND MAYBE COME UP WITH, UH, DIFFERENT PRIORITIES OR, UM, QUESTION SOME OF THESE.
SO I'D, I'D STILL LIKE TO SEE THAT LIST OF CAPITAL PROJECTS.
WE'LL, COUNCIL, WE'LL, WE'LL, UH, PREPARE THAT COMPLETE LIST.
UH, WE SENT A LIST OUT, UH, YESTERDAY, THE DAY BEFORE BY DISTRICT.
YES, I GOT MINE FOR DISTRICT 10.
WE'LL DO IT FOR THE ENTIRE CITY AND SHARE IT WITH THE COUNCIL.
UH, SLIDE NUMBER FIVE F STREET.
[01:05:01]
CAN PULL THAT UP.RAZZI, YOU, YOU SAID WE, WE MADE SOME GOOD PROGRESS IN THESE.
UM, UM, I, I'M STILL A LITTLE CONCERNED ABOUT, YOU KNOW, THE PROGRESS THAT WE'RE MAKING ACROSS THE BOARD.
YOU MENTIONED WE HAD A CERTAIN PERCENTAGE THAT WE, UM, MADE GOOD.
I'D LIKE TO SEE WHAT THOSE PERCENTAGES ARE THAT WE WERE ABLE TO, UM, GET BETTER STREETS IN EACH ONE OF THOSE CATEGORIES.
UM, WE'D LIKE TO TAKE A LOOK AT THAT, THAT DETAIL.
AND TAKING A LOOK AT THIS SLIDE, UM, LOOKING BETWEEN 20 AND WHAT YOU'RE ESTIMATING FOR 2021, EITHER THAT'S AN OPTICAL ILLUSION, BUT I'M SEEING IN 20 IS 77.45.
AND IT LOOKS LIKE THE LINE KEEPS GROW GOING HIGHER TO 21, BUT IT'S ONLY 77.05.
SO THAT SHOULD BE A DECREASE IN THAT LINE.
JUST TO ME, IT LOOKS LIKE IT'S STILL GOING UP, BUT THAT'S NOT, THAT'S NOT THE DIRECTION THE NUMBERS SHOW.
SO, UH, WOULD LIKE TO CHECK ON THAT.
AND THEN OF COURSE, IN 2022 AS WELL, UM, COUNCIL COUNCILMAN, YOU ARE CORRECT.
LET US TO CHECK NUMBER NUMBERS SUPPOSED TO GOING UP 77.0 SHOULD BE HIGHER THAN 77.04.
YEAH, SO WE NEED TO CHECK THAT.
UM, AND AGAIN, I'M CONCERNED ABOUT THE F STREETS.
YOU KNOW, WE'VE BEEN TALKING ABOUT THAT ON THE PREVIOUS SLIDE.
10% OF OUR 4,000 MILES, THAT'S OVER 400 MILES IN THIS CITY THAT ARE F STREETS.
AND THAT'S NOT WHAT OUR, OUR RESIDENTS OUT THERE USING OUR STREETS ARE EXPECTING.
WE, WE NEED TO, WE NEED TO PUT SOME EMPHASIS ON THE F STREETS.
LOOKING AT, UH, BEN SLIDE ON THE UPCOMING BOND, UH, I'M CERTAINLY STILL CONCERNED THAT WE'RE, THAT THAT NUMBER RIGHT THERE IS GONNA CONTINUE TO GROW BECAUSE WE'RE NOT ABLE TO DO THAT MANY F STREETS IN THE I M P AND WE'RE HOPING TO DO A LOT OF 'EM IN THE BOND.
BUT I, I'M, I'M VERY SKEPTICAL THAT WE'RE GONNA BE ABLE TO MAKE A, A DENT IN THE F STREETS.
SO NEED TO, YOU KNOW, I'M STILL STILL VERY CONCERNED ABOUT THAT.
AND THEN THE SLIDE SHOWING THE SIDEWALK, UH, REPAIRS.
I DON'T, I DIDN'T CATCH WHICH SLIDE NUMBER THAT WAS, BUT I JUST SAW THAT, UH, DISTRICT 10 DOES HAVE A LOT OF GAPS AND, UH, A LOT OF SIDEWALK REPAIRS.
AND HOW MUCH MONEY DID WE GET IN LAST BOND RAZZY? WE HAD, UH, 48 MILLION THROUGHOUT THE CITY.
EIGHT COUNCIL DISTRICT HAD MONEY, TWO OF THEM DID NOT.
AND UNFORTUNATELY, COUNCIL DISTRICT 10 WAS ONE OF THEM DID NOT HAVE ANY PEDESTRIAN MOBILITY PART OF 2017 BOND PROGRAM.
AND THE OTHER ONE WAS COUNCIL DISTRICT EIGHT.
I JUST WANT TO KEEP THAT ON EVERYBODY'S MIND THAT WE DID NOT GET ANY RELIEF IN OUR SIDEWALKS ON THIS LAST, UH, BEN SLIDE SEVEN.
NO, IN BEN'S PRESENTATION, SLIDE SEVEN.
I'M GONNA RECLAIM SOME OF MY TIME HERE.
I, I'M WORKING HARD, COUNCILMAN, IT'S JUST NOT SHARING.
JOHN, PAUSE THE, PAUSE THE CLOCK, JOHN.
OH, WHILE JOHN'S PULLING THAT UP, COUNCILMAN ON THAT CHART? YOU'RE RIGHT.
THAT THAT NUMBER IS INCORRECT.
UH, THE 2020 NUMBER IS SUPPOSED TO BE 76.09.
WE'RE WAY BELOW THE, BELOW THE DEBT CEILING, UM, WHICH, WHICH I THINK IS GREAT, BUT TWO, TWO DATA POINTS THAT I WANT TO POINT OUT THAT WE SHOULD ALSO TAKE A LOOK AT, BECAUSE WE OWN SAWS, WE
[01:10:01]
OWN C P SS AND THEY CARRY DEBT AS WELL.AND I THINK SINCE WE OWN THOSE TWO UTILITIES, WE NEED TO BE ADDING THOSE TO THIS DEBT CEILING OR HAVE IT IN A SHADOW BOX OR SOMETHING TO REFLECT WHAT OUR TOTAL DEBT IS.
'CAUSE THAT 1.9 BILLION DOES NOT REFLECT, UH, C P SS OR SAWS, RIGHT? BEN? NO, SIR.
THIS IS SPECIFICALLY FOR PROPERTY TAX DEBT BECAUSE THESE ARE WHAT THESE LIMITATIONS APPLY TO.
SO EVEN FOR US, THAT 1.9 BILLION IS A PORTION OF OUR DEBT OUTSTANDING.
WE'RE ACTUALLY JUST UNDER 3 BILLION WHEN YOU INCLUDE AIRPORT CONVENTION CENTER AND THOSE THINGS, THOSE THINGS.
BUT WE'RE SPECIFICALLY REFERENCING HERE IS THE LEGAL LIMIT THAT'S PLACED ON ONLY PROPERTY TAX DEBT.
IT DOESN'T APPLY TO AIRPORTS, C P SS SAWS OR ANY OF THAT STUFF.
AND, UH, AND THIS IS WHAT BROUGHT MY ATTENTION TO THAT.
I UNDERSTAND THIS CHART, BUT WHAT I'D LIKE TO SEE IS AN AGGREGATE CHART THAT SHOWS WHAT OUR TOTAL DEBT IS HERE FOR THE CITY OF SAN ANTONIO, WHICH INCLUDES, LIKE YOU SAID, THE AIRPORT.
UM, IT INCLUDES SAWS, IT INCLUDES C P S, WHAT IS OUR AGGREGATE DEBT THAT WE'RE BUILDING HERE IN SAN ANTONIO.
SO I'D REALLY LIKE TO SEE THAT PUT TOGETHER ON SLIDE EIGHT.
THE NEXT ONE, YOU KNOW, THIS IS AN INTERESTING SLIDE HERE, BEN.
AND, YOU KNOW, LOOKING AT ALL THOSE CITIES ACROSS THERE, YOU KNOW, WE KEEP SAYING, DO YOU KNOW OUR POVERTY REPORT, WE HAVE THE MOST, WE'RE THE, THE MOST POVERTY OF A LARGE CITY IN THE US.
AND I WOULD SAY THAT OUR BAR SHOULD BE EVEN LOWER THAN FORT WORTH AS FAR AS THE, THE DEBT PER CAPITA.
UM, BECAUSE WE KEEP PROCLAIMING THAT WE ARE THE, THE POOREST CITY.
AND I THINK THAT OUR, OUR DEBT SERVICE SHOULD BE REFLECTIVE OF THAT BASED ON, YOU KNOW, HOW THE WEALTH OF OUR TOTAL CITY.
SO I WOULD LIKE TO SEE US SHOOT TO GET THAT BAR DOWN INSTEAD OF CLIMBING UP THAT LADDER.
IF I CAN JUST COMMENT THERE SO THAT, THAT SLIDE, SORRY JOHN.
IT'S JUST TAKING OUR DEBT SERVICE AND CONVERTING IT TO A PER CAPITA NUMBER.
OBVIOUSLY THE CHALLENGE IS, AND, AND, AND PART OF THE BALANCING THAT WE'RE GOING THROUGH, RIGHT? AS WE'RE TRYING TO MAINTAIN AN ISSUE DEBT IN A RESPONSIBLE WAY.
BUT ALSO MEET ALL THE NEEDS OF THE COMMUNITY.
AS YOU KNOW, WE'RE, WE'RE A VERY LARGE CITY.
WE COVER A LOT OF SQUARE MILES, SO WE'RE ALWAYS LOOKING FOR THAT BALANCE.
AND, YOU KNOW, PART OF THAT DIRECTION WOULD BE POLICY DIRECTION FROM YOU ALL.
UH, BUT THAT IS THE CHALLENGE, IS WE TRY TO MEET ALL THOSE NEEDS ACROSS THE COMMUNITY.
HOW DO WE, HOW DO WE DO THAT AND, AND CONTINUE TO HAVE AFFORDABLE, UH, OF THAT DEBT LIMIT.
AND JUST A COUPLE MORE QUESTIONS.
YOU CAN ANSWER THESE AT, UH, UH, THE CONVENTION CENTER AND ALAMO DOME.
WHICH PROJECTS HAVE WE NOT STARTED? AND CAN WE DELAY THOSE INSTEAD OF, INSTEAD OF HITTING AND, AND PAYING FOR THAT UPFRONT THROUGH OUR TAXES VERSUS THE HOT TAX? I THINK THAT'S IMPORTANT THAT WE KNOW THAT.
AND ALSO THE HOTEL, YOU KNOW, YOU SAID THAT, UH, PER THE AGREEMENT, IF, UH, THEY'RE NOT MEETING THEIR FINANCIAL OBLIGATIONS, THE CITY WOULD STEP IN, BUT DADGUMIT, THEY'RE CLOSED.
HOW CAN WE NOT, WHY SHOULD WE BE RESPONSIBLE FOR COVERING THAT DEBT WHEN THEY'RE NOT EVEN OPEN TRYING TO MAKE ANY MONEY? SO I, I GOT A QUESTION ABOUT THAT AND I'D LIKE TO HAVE A SEPARATE MEETING WITH THEM.
AND THEN BEN, HAVE YOU TAKEN A LOOK AT ANYTHING ABOUT MICROBONDS THAT OPENS UP BONDING, UM, OPPORTUNITIES FOR THE AVERAGE CITIZEN INSTEAD OF PAYING THIS HUGE OVER, UM, YOU KNOW, THIS HUGE BURDEN TO BIGGER COMPANIES TO, UH, ISSUE BONDS? CAN WE SEE ABOUT OPENING IT UP FOR SMALLER BONDS CALLED MICRO BONDS THAT, UH, WE'VE DONE SOME RESEARCH AND THEY'RE DOING THAT IN CALIFORNIA.
I'D LIKE TO DISCUSS THAT AS WELL.
ALRIGHT, COUNCILMAN, I'LL FOLLOW UP WITH YOU ON THOSE THREE ITEMS. OKAY.
UH, COUNCIL MEMBER PERRY, COUNCIL MEMBER GRA.
UM, LET ME START WITH THE, UM, HOTEL, THE CONVENTION CENTER HOTEL.
UM, THEN, SO IF IT IS ANY ACTIVITY THAT TAKES PLACE AT THAT HOTEL, DOES THAT THEN HELP THE, UM, TRYING TO GET TO THE, IT SAYS HOTEL OPERATIONS PAY FOR DEBT SERVICE.
[01:15:01]
SO THAT DOESN'T MEAN THAT THE CONCEPTS OR THE MEETING HAS TO TAKE PLACE IN THE ACTUAL CONVENTION CENTER, BUT IT CAN ALSO TAKE PLACE IN JUST THE HOTEL.THAT IS CORRECT, YES OR NO? YES.
SO THE, THE, IT'S A VERY COMPLICATED STRUCTURE THAT'S IN PLACE FOR THE HOTEL, BUT AS IT GENERATES REVENUE, IT PAYS FOR ITS OPERATIONS COSTS, IT PAYS FOR, UH, DEBT SERVICE.
AND SO EVEN IF IT OPENS, IT'S GOTTA GENERATE ENOUGH INCOME TO PAY FOR PART OF THAT DEBT SERVICE.
AND, AND RIGHT NOW THIS IS A FORECASTED, UH, AMOUNT FROM OUR SIDE.
IT'LL ACTUALLY DEPEND ON WHAT HAPPENS OVER THE NEXT COUPLE OF MONTHS.
UM, THANK YOU BEN, FOR YOUR RIVETING PRESENTATION.
UM, TO ROZY, THANK YOU FOR YOUR PRESENTATION.
AND, UH, OF COURSE, ROD, ON SLIDE NUMBER SIX, ZI, IT HAS 1,268 PROJECTS, 371 CENTER LINE MILES.
SO DOES THAT MEAN WHEN WE DO THESE STREET MAINTENANCE PROJECTS, UM, WILL THOSE MAINTENANCE, THE MAINTENANCE OF THOSE STREETS, BRING THEM TO AN A OR THEY WILL JUST BRING THEM INTO A B OR, OR WHAT? MOST OF THEM WILL BE A, DEPEND ON THE TYPE OF THE APPLICATION WE DO.
AND SOME OF THEM WILL BE B BUT OVERALL IT WILL BE MOVING UP AT LEAST A FEW CATEGORIES, ESPECIALLY CERTAIN PROJECT WE DO F OF COURSE THEY'RE COSTLY PROJECT, BUT THEY END UP BEING FROM F TO A.
AND I'M GOING TO, UM, JUST SHARE, SHARE THIS FOR THE RECORD.
AND I THINK PART OF THE ISSUE, AND I'M GLAD YOU ADDRESSED IT, UM, OR THE MAYOR ASKED THE QUESTION, I'M GLAD YOU ADDRESSED IT, UH, ROZI, UM, ABOUT THE NUMBER OF PROJECTS, BECAUSE FOR OUR DISTRICT, IT'S, IT'S LIKE WE DIDN'T HAVE ENOUGH, UM, CONTRACTORS FOR THE PROJECTS THAT WE HAD GOING AND WANTING TO MOVE QUICKLY.
SO WE WERE ON A HOLDING PATTERN FOR SOME OF THE PROJECTS IN OUR DISTRICT.
WE DIDN'T HAVE ENOUGH CONTRACTORS, UH, TO, TO START OR ELSE THEY WERE ON OTHER PROJECTS WE'RE BEHIND ON OTHER PROJECTS IN DIFFERENT PARTS OF THE CITY AND WE DIDN'T HAVE ENOUGH.
SO I THINK WE NEED TO GET THAT PIPELINE OF, UM, ON-CALL OR, OR WHATEVER CONTRACTORS WE NEED TO DO TO GET MOVING.
UM, ANOTHER THING WE'RE GOING TO GET, MOVE WE NEED TO GET MOVING IS THE COORDINATION, BECAUSE I KNOW YOU'VE BEEN DOING A BETTER JOB, BUT THE COORDINATION BETWEEN SAWS AND C P S AND OUR WORK, BECAUSE IN DISTRICT THREE WE HAVE BEEN WAITING FOR ALMOST FOUR YEARS NOW FOR OUR EAST HEALTH PROJECT, WHICH IS RIGHT IN FRONT OF AN ELEMENTARY SCHOOL, UM, TO FIX IT.
WE HAVE THE MONEY, WE SET IT UP.
WE'VE BEEN WAITING FOR SOFT, WE WANTED TO COORDINATE SO WE DIDN'T HAVE TO CUT IT UP AGAIN.
BUT THAT HAS BEEN TAKING FOR, IT HAS BEEN TAKING FOREVER.
SO WHAT I WANT TO HEAR FROM YOU ROSIE AND TEAM, IS THAT YOU ALL ARE COMMITTING, 'CAUSE IT WAS ALSO PUSHED BACK WAS ONE OF THOSE THAT HAD TO BE SUSPENDED AND THEN WE HAD TO PUT MONEY JUST FOR THE SIDEWALK PORTION.
SO I WANT TO HEAR FROM YOU THE COMMITMENT THAT THIS IS GOING TO GET STARTED AND DONE, HOPEFULLY COMPLETED IN 21.
CAN YOU GIVE ME AN UPDATE WITH THAT? OF COURSE.
COUNCILMAN, REGARDING THE CONTRACT AVAILABILITY, AND YOU ARE CORRECT LATE THAT, THAT LAST YEAR AND EARLY THIS YEAR, MARKET WAS REALLY VERY HARD.
WE HAD DIFFICULTY TO GET THE CONTRACTOR TO DO OUR WORK, BUT AS I MENTIONED FOR FIRE STATION 24, WHEN WE BID THAT ONE, WE HAD 13 CONTRACTORS GOING AFTER THE PROJECT.
WHAT IT DOES, WE GET A HOPEFULLY BETTER QUALITY CONTRACTOR AND LOWER PRICE AND OF COURSE MORE CONTRACT.
THERE YOU HAVE CO MY COMMITMENT.
WE DELIVERED THAT PROJECT IN 2021.
ROZY COUNCILWOMAN, WHAT'S THE NAME OF THE STREET? EAST TOUGH.
UM, AND THEN IN SLIDE NUMBER, WERE YOU GONNA SAY SOMETHING ELSE, ERIC? NO, NO.
I'M JUST GONNA FOLLOW UP ON MY OWN.
ON SLIDE NUMBER 11, ROSSI, UM, YES, THOSE NUMBERS, UH, TRAGIC, NOT GOOD NUMBERS FOR DISTRICT THREE, ALTHOUGH WE DO KNOW THAT DISTRICT THREE IS THE LARGEST SPATIAL DISTRICT OUT THERE, SO WE HAVE A LOT OF GROUND TO COVER.
[01:20:01]
MILES, AND YOU MAY HAVE MENTIONED THIS, I DIDN'T CATCH IT, BUT OF THE EXISTING MILES, NOT JUST IN SIDEWALKS IN DISTRICT THREE, BUT IN ALL THE DISTRICTS, DO WE ALSO HAVE A BREAKDOWN? BECAUSE YOU MENTIONED USABLE SIDEWALKS.SO ARE THE UNUSABLE SIDEWALKS PART OF THE GAP MILES OR ARE THEY PART OF EXISTING MILES THAT HAVE SIDEWALKS BUT THEY'RE MAYBE NOT UP TO CODE OR, UM, BUCKLED, ET CETERA? UH, I THINK COUNCILWOMAN SOME OF THOSE UNUSABLE SIDEWALK ALSO PART OF THE EXISTING SIDEWALK, WE HAVE SOME LIMITED INFORMATION.
WHERE ARE THEY UNUSABLE SIDEWALK.
BUT WE DO NOT HAVE A HUNDRED PERCENT REGARDING CITY OF SAN ANTONIO.
I THINK THAT'S IMPORTANT DATA TO GATHER OF JUST WHEN WE'RE TALKING ABOUT THE UNUSABLE SIDEWALKS, BECAUSE IT MAY, IT MAY BE AN EXISTING, BUT IT'S ABSOLUTELY NOT USABLE.
AND EITHER FAMILIES CAN'T WALK ON THERE.
UM, PEOPLE IN THEIR, PEOPLE WITH STROLLERS, PEOPLE IN WHEELCHAIRS, PEOPLE ON ELECTRIC, UH, CHAIRS CANNOT USE THESE.
AND IT'S NORMALLY IN INNER CITY AND OLDER NEIGHBORHOODS THAT HAVE THESE UNUSABLE SIDEWALKS.
UM, SO I, I REALLY DO WANT TO SEE A CONTINUED DATA COLLECTION ON THOSE, THOSE EXISTING MILES.
'CAUSE I'D LOVE TO SEE EVEN IN, IN THOSE, UM, OLDER NEIGHBORHOODS OF MY 500 EXISTING MILES, HOW MANY ARE ACTUALLY USABLE SIDEWALKS IN DISTRICT THREE? UM, I'M HAPPY THAT WE'RE HAVING THE MOST SIDEWALK, UH, DOLLARS COMMITTED A IT'S ABOUT TIME AND I'M GOING TO BE CONTINUING TO ADVOCATE FOR THAT.
AND, YOU KNOW, AND THAT'S WHY WE AND DISTRICT, WE HEARD IT LOUD AND CLEAR AND THAT'S WHY IN THE BOND DISTRICT THREE CHOSE TO PUT SIDEWALK MONEY INTO OUR BOND BECAUSE THEY WANTED TO MAKE SURE THAT WE HAD THAT MONEY IN THE BOND FOR OUR SIDEWALKS.
BUT, YOU KNOW, GOING TO THE TRANSPORTATION PORTION OF THIS, UM, WHICH I UNDERSTAND WE'RE VISIONING AND WE'RE PLANNING, UM, BUT WE STILL KNOW THAT PART OF THE VISIONING AND PLANNING OF TRANSPORTATION AND OUR VISION ZERO AND OUR PEDESTRIAN MOBILITY, THERE ARE DISPARITIES THAT EXIST.
AND DISTRICT THREE HAS THESE DISPARITIES.
THERE'S DISPARITIES IN PEDESTRIAN STREET SCAPES.
THERE'S UM, THERE'S THIS EQUITY ISSUE.
THERE'S STILL EQUITY THAT HAS TO BE DE DEALT WITH IN NEIGHBORHOODS AND IN CERTAIN AREAS.
SO, COUPLE OF THINGS TO KEEP IN MIND.
NUMBER ONE, UH, WHEN WE'RE USING THOSE EQUITY ATLAS, WE HAVE TO KEEP IN MIND THAT EVEN WITHIN MAYBE SOME OF THOSE CENSUS TRACKS THAT HAVE A LOW, UM, EQUITY NUMBER, THERE STILL MAY BE POCKETS OF AREAS THAT NEED THAT, UM, HELP.
AND I DO WANNA SEE DIFFERENT, UH, YOU KNOW, FOCUS ON WHEN WE'RE LOOKING AT THE TRANSPORTATION SECTION, CONTINUE TO SEE, WE CAN PUT BY FACILITIES AND OTHER ITEMS IN FOR CERTAIN PARTS OF THE CITY AND HAVE NEVER HAD SIDEWALKS IN THOSE PARTS OF THE CITY, WE'RE STILL NOT ADDRESSING THE ISSUE.
SO WE HAVE TO PUT MONEY INTO THAT.
UH, CONTINUE TO PUT MONEY INTO THAT, INTO DISTRICT THREE, WHERE THOSE GAP MILES ARE.
UM, AND YES, I ALSO WANT TO ENCOURAGE YOU ALL, UM, WHEN WORKING ON THE TRANSPORTATION, THE MAJOR THOROUGHFARE PLAN, UM, WORKING TOGETHER WITH THE, UM, M P O, LET'S BE PROACTIVE WHEN WE'RE LOOKING AT TRANSPORTATION OPTIONS AND LET'S BE PROACTIVE WHEN WE'RE LOOKING AT WHAT NEEDS TO HAPPEN WITH OUR, OUR SIDEWALKS.
AND I WILL SAY RO AND TEAM, I MEAN, I LOVE THE OPTION OF A MULTI-USE TRAIL, THE OPTION OF A MULTI-USE TRAIL THAT CAN COVER, UM, SIDEWALKS, THAT CAN COVER, UH, FOR A JOGGING TRAIL THAT CAN HELP WITH BIKE RIDING ON THIS MULTI-USE TRAIL.
IT'S A GREAT OPTION AND I REALLY WANNA ENCOURAGE US LOOKING AT THAT AS MAYBE SOME MORE, UM, CREATIVITY WHEN WE'RE LOOKING TO FILL THOSE SIDEWALK GAPS.
WHAT ARE SIDEWALK GA GAPS THAT NEED TO BE CONCRETE, BUT WHAT ARE SIDEWALK GAPS CAN THAT CAN ACTUALLY GIVE YOU THOSE MULTI-USE TRAILS? UM, THANK YOU MAYOR.
AND IF I HAVE, I MAY HAVE SOME MORE, UH, QUESTIONS THAT I MISSED AND I'LL CHIME BACK IN.
UM, OR BEN, I, I WAS LOOKING AT ONE OF THE SLIDES, UM, REGARDING THE AIRPORT, UH, REVENUE BOND RATING.
I FORGET WHICH SLIDE IT WAS, BUT, UM, I NOTICED THAT OF ALL THE RATINGS WE'VE GOT, IT'S THE LOWEST ONE.
UM, TRIPLE B FITCH, RIGHT? WE'VE GOT AN A
[01:25:01]
THREE AND AN A, UM, SINCE IT'S THE LOWEST ONE, DO, DO Y'ALL HAVE A, SOME SORT OF PLAN IN PLACE ON HOW TO RAISE THAT? UM, AND, AND IF NOT, I MEAN, WHY IS IT THE LOWEST ONE AND WHAT'S GOING ON THERE? UM, SO THAT AIRPORT ONE YOU'RE REFERENCING IS THE CUSTOMER FACILITY CHARGE.THAT WAS, THOSE WERE THE BONDS THAT WE ISSUED A FEW YEARS AGO TO CONSTRUCT THE CONTRACT FACILITY.
ONCE THOSE BONDS ARE ISSUED, UM, OUR, OUR, OUR RATES ARE FIXED, SO THAT NO LONGER IMPACTS US.
SO WE'RE NOT WORKING ON TRYING TO RAISE THAT RATING PER SE.
UH, WHEN YOU LOOK AT THE SINGLE AS FOR THE OTHER AIRPORT CATEGORIES, UM, THAT'S A DECENT RATING FOR AN O AND D AIRPORT, BUT JUST AIRPORTS IN GENERAL ARE GONNA HAVE MORE RISK BECAUSE OF THE AIRLINE INDUSTRY AND HOW IT GETS IMPACTED WHEN RECESSIONS HAPPEN.
SO YOU TYPICALLY SEE, UH, LOWER RATINGS AT AIRPORTS OVERALL.
UM, SO THE OTHER, THE OTHER QUESTION I HAVE IS WITH REGARD QUESTION I HAVE IS WITH REGARDS TO THE PSAP ON YOUR PRESENTATION, SLIDE FIVE, RIGHT? I KNOW THAT WE'RE LOOKING AT, UM, YOU KNOW, A LEASE OUT THERE FROM THE M F C IS THERE, WHAT, WHAT DOES THE SCENARIO LOOK LIKE IF WE OWN IT VERSUS LEASE IT? SO IN THIS CASE, WHEN I SAY LEASE, IT'S TRULY A STATUTORY LEASE.
UM, WE ACTUALLY WENT OUT AND ISSUED DEBT TO A CORPORATION, A STATUTORY CORPORATION, RIGHT? IT'S A LEGAL CONSTRUCT.
SO WE'RE NOT, WE'RE NOT RELEASING FROM A LEASING COMPANY PER SE.
WE, WE DO OWN THE BUILDING THROUGH THE CORPORATION.
AND SO THE LEASE REVENUE BOND IS REALLY JUST A FINANCING VEHICLE? THAT'S CORRECT, YES, SIR.
AND SO, SO WHAT WE'RE PROPOSING FOR 2021 IS ISSUING MORE DEBT.
IS THAT WHAT I SAW? WELL, WE'RE LOOKING AT TWO OPTIONS.
ONE IS, UM, THOSE BONDS BECOME CALLABLE IN IN NEXT SEPTEMBER.
SO WE'RE GONNA LOOK AN OPPORTUNITY BECAUSE OF LOWER INTEREST RATES TO REFINANCE IT UNDER THAT LEASE REVENUE STRUCTURE, JUST LOWER THE INTEREST COSTS, KEEP IT IN THAT LEASE, UH, REVENUE STRUCTURE AND CONTINUE TO PAY IT FROM THE GENERAL FUND.
WE'RE JUST LOWERING OUR COST OF BORROWING.
OPTION TWO IS WE REFINANCE IT LOWER OUR COST OF BORROWING, BUT I MOVE IT OUT OF THAT LEASE FACILITY.
I MOVE IT INTO OUR PROPERTY TAX DEBT PLAN AND IT TAKES IT OUT OF THE GENERAL FUND.
IT'S NO LONGER A LEASE, UH, BOND.
IT'S SOMETHING THAT WE PICK UP ON THE PROPERTY TAX SIDE, WHICH ALSO HELPS US ON THE GENERAL FUND OPERATING BUDGET.
SO BOTH OF THOSE ARE MEANT TO LOWER OUR COSTS.
ONE MOVES THE OBLIGATION FROM, UH, THE GENERAL FUND OVER TO OUR DEBT SERVICE TAX RATE.
NOW, CONSIDERING THAT SOME OF THOSE ARE CALLABLE, LIKE YOU SAID NEXT SEPTEMBER, CAN WE, UM, I DON'T KNOW, JUMP THE GUN ON THAT ONE AND OFFER TO, YOU KNOW, UH, BY HOW TO REFINANCE THEM NOW? SO WE HAVE THE ONLY OPTION WE HAVE NOW BECAUSE WE CAN'T DO A TAX EXEMPT, UM, ADVANCED REFUNDING ANYMORE BECAUSE OF TAX LAW.
WE CAN DO IT AS A TAXABLE, UH, REFINANCING, BUT TYPICALLY TAXABLE RATES ARE GONNA BE A LITTLE BIT HIGHER BASED ON WHAT WE SEE SO FAR.
WE'RE BETTER OFF WAITING TILL NEXT SUMMER AND, UH, GETTING CLOSER TO THAT CALL DATE AND DOING IT WITH A TAX EXEMPT REFINANCING.
UH, BY THE WAY, DO WE HAVE ANY OTHER PROPERTIES THAT ARE, UH, YOU KNOW, SUBJECT TO THIS LEASE REVENUE BOND SCHEMA? SO, SO THE PUBLIC FACILITIES CORPORATION LEASE REVENUE BONDS FOR THE CONVENTION CENTER, THAT HALF BILLION DOLLARS IS ALSO UNDER THAT KIND OF A CONSTRUCT? YES.
AND THEN LASTLY, UH, ONE OF YOUR SLIDES I SAW $50.6 MILLION FOR CARES ACT THAT ARE GONNA BE FUNDING OPERATIONS TO OFFSET REVENUE SHORTFALL.
THAT I THINK GENERALLY WE, WE'VE ALWAYS BEEN TELLING PEOPLE THAT, YOU KNOW, THOSE FUNDS WEREN'T FOR THE PURPOSE OF, OF, UH, HELPING, UH, US MAKE UP REVENUE SHORTFALLS.
SO HOW DID YOU MANAGE THAT? SO UNDER THIS PARTICULAR PART OF THE CARES ACT FUNDING THAT WAS PROVIDED TO AIRPORTS, WE'RE ABLE TO, UH, PAY FOR ONGOING OPERATING EXPENSES AS WELL AS DEBT SERVICE.
BUT THAT WAS VERY SPECIFIC TO THE AIRPORT STIMULUS THAT WAS PROVIDED.
THAT DIDN'T APPLY TO THE OTHER CARESS ACT FUNDING THAT WE RECEIVED.
COUNCIL MEMBER BLA UH, COUNCIL MEMBER COURAGE.
UM, I HAVE A QUESTION FOR RAZZIE ON SLIDE EIGHT.
YOU HAVE, UM, PROJECTS LISTED AND I WANTED TO FIND OUT, ARE THOSE ACTUAL PROJECT NUMBERS OR PROJECTED? USUALLY COUNCILMAN, THAT'S THE NUMBER OF THE PROJECT WE DO
[01:30:01]
EVERY YEAR.PART OF SCHOOL PEDESTRIAN SAFETY FOR 1 MILLION PAYMENT MARKING.
THAT'S WHAT AMOUNT WE DO 235 MILES FROM JUST WHAT WE HAVE DONE IN THE PAST FOR THE SAME AMOUNT.
AND WE KNOW WE ARE GOING TO DO PRETTY CLOSE WHAT WE DID LAST YEAR AND ALSO WE HAVE 1 MILLION FOR NEIGHBORHOOD TRAFFIC COMING.
SO THOSE ARE NOT ACTUAL PROJECTS ON THE BOOKS, THOSE ARE WHAT YOU PROJECT, YOU'LL PROBABLY FILL INTO THOSE CATEGORIES? YEAH, MANY OF THEM ARE COUNCILMEN, LIKE A 205 FLASHING BACON MAINTAIN.
THEY ARE THE EXISTING IN, IN CALLED AREA.
UM, I WAS A LITTLE SURPRISED AT THE COST OF, UH, TRAFFIC CALMING.
YOU HAVE THREE PROJECTS AND I PRESUME THE THREE DESIGNS ARE FOR THOSE PROJECTS AND, UH, YOU KNOW, WHAT KIND OF PROJECTS ARE TRAFFIC CALMING THAT WOULD COST $330,000 A PIECE? WE USUALLY COUNCILMAN DESIGN THREE OF THEM AND BUILD THE THREE, WE REALLY DO SIX PROJECT ALTOGETHER.
IT IS NOT REALLY THREE PROJECTS.
SO YOU, YOU, YOU HAVE MONEY SET ASIDE TO DESIGN PROJECTS AND THEN THE REST OF THE MONEY IS TO ACTUAL BUILD SOME PROJECTS THAT HAVE ALREADY BEEN DESIGNED OR SOMETHING? YEAH, USUALLY WE DESIGN FIRST YEAR AND WE BUILD THE NEXT YEAR.
THEY INCLUDE FLASHING BEACON SPEED HOMES, PEDESTRIAN, REFUSE ISLAND, AND SO ON.
DEPEND ON THE REALLY LOCATION WE WORK WITH COUNCIL DISTRICT OFFICE AND RESIDENTS SEE WHAT THEY WANT AND WHAT'S REALLY PROPER FOR THAT PARTICULAR LOCATION.
YEAH, IT JUST SEEMS LIKE YOU GET A LOT MORE DONE THAN THREE PROJECTS, UH, FOR A MILLION DOLLARS.
I MEAN, HOW MUCH IS THE SPEED HUMP NOW? YEAH, BUT COUNCILMAN THAT ALSO PAID FOR THE DESIGN OF THE TREE PROJECT AND BUILD THE TREE PROJECT.
I UNDERSTAND IT JUST SEEMED, UH, LIKE A LOT OF MONEY.
I'D LIKE TO SEE A LITTLE MORE OF YOUR BACKGROUND INFORMATION ON THAT.
I WANTED TO FIND OUT A LITTLE MORE ABOUT DETAILS ON THAT.
JOHN, COULD YOU BRING THAT BACK UP? OKAY.
UM, I SEE ON THAT WE HAVE, UH, STREET SWEEPING, UH, AND VEGETATION MANAGEMENT AND FLOOD MANAGEMENT.
YOU KNOW, ONE OF THE THINGS THAT I I SEE AND THAT I HEAR A LOT ABOUT IS, UH, WE'VE GOT, UH, DRAIN, UH, DRAIN CHANNELS, FLOOD CHANNELS THAT ARE OVERGROWN, THAT ARE BROKEN, THAT HAVE OBSTRUCTIONS AND THINGS OF THAT NATURE.
UH, AND THEN I, I KNOW, I THINK I KIND OF UNDERSTAND STREET SWEEPING, UH, BUT HOW MANY ACTUAL PROJECTS GET DONE THROUGH THESE, UH, ALLOTMENTS OF FUNDING? I MEAN, CAN, CAN WE SEE WHAT YOU PROJECT WILL BE THE NUMBER OF PROJECTS REGARDING VEGETATION MANAGEMENT, STORM WATER, UH, OR, OR STREET SWEEPING AND FLOOD MANAGEMENT, UH, YOU KNOW, SO THAT WE HAVE AN IDEA AND ARE THESE ON OUR IPSS IF WE ARE GETTING ANY OF THESE IN OUR DISTRICT? JOHN, CAN YOU GO TO SLIDE NUMBER 15? WE HAVE THOSE NUMBER OF THE COUNCILMEN ON SLIDE NUMBER 15, FLOOD MANAGEMENT.
WE DO 60 MILE TELEVISING UNDERGROUND SYSTEM, 70 MILE MAINTAIN ANNUALLY, CHANNEL AND CREEK MAINTENANCE, VEGETATION AND MANAGEMENT, 24,000 ACRES.
AND OF COURSE, STREET SWEEPING 49,000 OF CENTER MILE WE DO ANNUALLY.
SO WE'RE AGAIN TALKING ABOUT ESTIMATES ON BASED ON PREVIOUS, WHAT WE THINK WE'LL SPEND THIS MONEY ON GOING FORWARD.
BEN, I'VE GOT A QUESTION, UH, ON SLIDE 11 OF YOUR PRESENTATION.
I JUST REALIZED YOU WERE, YOU WERE HEARING FROM A BLANK SCREEN.
SORRY, I DIDN'T HAVE THAT ON EVERYBODY.
UM, YOU HAVE, UH, IN THE UPPER RIGHT HAND CORNER SOMETHING
[01:35:01]
ABOUT, I BELIEVE IT'S, OR EXCUSE ME, LOWER LEFT HAND CORNER, UH, 2.7 MILLION, UH, FOR H PARK.NOW, I THOUGHT WE HAD SUSPENDED FINANCING THEIR OPERATION.
COULD YOU TELL ME WHAT WE ARE DOING WITH THIS DEBT SERVICE, HOW THIS IS SUPPOSED TO WORK? YES, SIR.
SO THE PART YOU'RE RECALLING IS THAT IN THE GENERAL FUND THROUGH AN AGREEMENT, WE WERE PROVIDING SUPPORT FOR OPERATIONS.
THAT AGREEMENT EXPIRES IN 2020, SO WE NO LONGER PROVIDE THAT SUPPORT.
A FEW YEARS AGO WE ISSUED SOME CERTIFICATES OF OBLIGATION TO, UH, PROVIDE FUNDING FOR IMPROVEMENTS TO THE PARK ITSELF.
AND THE INTENT WAS H PARK WAS GOING TO USE FUNDING THAT IT WAS GOING TO GET FROM THE P THREE DEVELOPMENT ON THE PARK.
THAT DEVELOPMENT HAS BEEN DELAYED, SO THEY DON'T HAVE THE FUNDING, UH, TO BE ABLE TO MAKE THOSE DEBT SERVICE PAYMENTS FOR THE NEXT COUPLE OF YEARS.
SO THAT'S WHAT WE'RE PICKING UP HERE.
THE 2.7 MILLION IS THE TOTAL FOR BOTH YEARS.
IT'S A LITTLE OVER 1,000,003 FOR EACH YEAR.
WOULD WE EXPECT THAT EVENTUALLY H PARK WOULD REIMBURSE US FOR OUR US PICKING UP THAT EXPENSE FOR THEM? WE HAVE NOT HAD THAT CONVERSATION WITH THEM YET.
WE'LL CONTINUE TO LOOK AT THAT WITH THEM.
UM, I THINK WHAT WE HAD DONE IS WE HAD TALKED ABOUT AMORTIZING THAT OVER THE REMAINING LIFE OF THE BONDS, SO THEY WOULD BE PAYING A LITTLE BIT MORE OVER TIME TO PAY US BACK.
YEAH, I JUST, BECAUSE REALLY THEY'RE INDEPENDENT AND WE'VE BEEN SUPPORTING THEM AND I RECOGNIZE THAT THEY'RE STILL LOOKING TO FURTHER DEVELOP A LOT OF AREA AROUND THERE.
AND I WOULD THINK THAT SOMEDAY WE, WE WOULD BE REIMBURSED FOR OUR COST FOR CARRYING THEM FORWARD.
SO I JUST WANTED TO BRING THAT UP.
UH, ON SLIDE 14, OH, EXCUSE ME, SLIDE 12, I APOLOGIZE.
UM, WHAT IS YOUR PROJECTION FOR A POTENTIAL BOND FOR 2022? SO YOU CAN SEE IT HERE LISTED AT $675 MILLION.
UM, BUT THE BIGGEST THING DRIVING THAT DOWN COUNCILMAN, AS I MENTIONED, IS THE PROJECTED TAXABLE VALUE GROWTH THAT WE'VE GOT IN PLACE.
WE'RE ASSUMING THAT, UM, OUR VALUES WILL DROP BY ABOUT 2% IN 22, UH, ALMOST BE FLAT THE FOLLOWING YEAR AND THEN START TO, TO COME OUT OF THAT AND, AND HAVE POSITIVE GROWTH.
UM, CLEARLY I DON'T HAVE A CRYSTAL BALL.
I CAN'T TELL YOU EXACTLY WHAT THAT'S GONNA LOOK LIKE.
THE VALUES THAT WE GET WITH THE CERTIFIED ROLE NEXT SUMMER WILL BE BASED ON VALUES AS OF JANUARY 1ST, 2021.
WE WILL UPDATE THIS PLAN AGAIN NEXT SUMMER.
THAT CERTIFIED ROLE WILL DRIVE A LOT OF OUR PROJECTIONS GOING INTO THIS BOND PROGRAM.
SO, UM, TO THE EXTENT IT DOES MUCH BETTER THAN OUR PROJECTIONS, YOU'LL SEE THAT NUMBER GO BACK UP.
ANOTHER THOUGHT, UH, MIGHT BE TO PUT IT OFF A YEAR OR TWO BECAUSE OF THE FINANCIAL SITUATION TO WHERE WE'D BE IN A BETTER POSITION TO, UH, HAVE A MUCH LARGER BOND PROJECT, WHICH COULD GUARANTEE MORE LONG-TERM WORK GET DONE.
SO, YOU KNOW, UH, I, I'D BE ANXIOUS TO SEE WHAT THE TAXABLE VALUES ARE OVER THE NEXT YEAR OR SO WHEN WE START LOOKING AT THIS, BUT IT ALMOST SEEMS TO ME WE COULD, AND PEOPLE WOULDN'T UNDERSTAND EXTENDING A PERIOD OF TIME, UH, FOR THIS, INSTEAD OF HAVING A SHORT BOND HAVE ONE THAT MAY, UH, BE INITIATED A YEAR OR TWO LATER SO THAT IT'S MORE SUBSTANTIAL AND IT'S LONG TERM FOR IT TO IMPROVE THE, WE CAN CERTAINLY HAVE THAT CONVERSATION, COUNCILMAN WITH YOU NEXT SUMMER.
UM, THAT IS CERTAINLY AN OPTION.
UH, ONCE WE GET THAT CERTIFIED VALUE, AGAIN, WE'LL GIVE YOU A BETTER INDICATION OF WHAT THAT LOOKS LIKE.
AND IF WE FOLLOW PROCESSES SIMILAR TO WHAT WE'VE DONE IN THE PAST, WE WOULD BEGIN THAT, UH, PLANNING PROCESS REALLY NEXT SUMMER.
UH, YOU'D HAVE COMMITTEES IN PLACE REALLY LOOKING AT WHAT PROJECTS TO SELECT, AND THEN YOU'D MOVE INTO MAY OF 22 FOR A POTENTIAL ELECTION.
BUT TO YOUR POINT, WE CAN TALK ABOUT WHETHER THAT MAKES SENSE GIVEN THE ECONOMIC CLIMATE OR WHATEVER THAT LOOKS LIKE NEXT SUMMER.
YOU KNOW, BECAUSE I'VE ALREADY BEEN THINKING ABOUT BRINGING PEOPLE TOGETHER TO START PLANNING FOR BONDS FOR MY DISTRICT.
UH, EVEN I WAS THINKING THIS FALL, BUT NOW IF WE'RE GONNA WAIT UNTIL NEXT SUMMER, IT GIVES US EVEN LESS TIME TO GET ALL OF THE COMMUNITY INVOLVED.
AND, UH, I'D HATE TO HAVE US BRING PEOPLE TOGETHER TO WORK FOR 600 OR 700 MILLION WHEN WE REALLY KNOW WE HAVE NEEDS.
UH, THAT MIGHT LAST A YEAR LATER TO INITIATE THAT COULD BE A BILLION.
SO, UH, YOU KNOW, I JUST WANTED TO MAKE THAT FOOD FOR THOUGHT.
[01:40:06]
MUTED.AND THAT'S ALL MY QUESTIONS, MAYOR.
UM, SO, UH, I KNOW THAT AS THE MAYOR HAD DIRECTED US TO OR DIRECTED STAFF TO MOVE FORWARD QUICKLY ON ALL THE PROJECTS THAT WE POSSIBLY COULD, UH, TO GET THINGS GOING.
UM, I WANTED TO GET A SENSE FROM YOU, RAVI, DO YOU KNOW ABOUT HOW MUCH OF THIS WORK WE ANTICIPATE TO BE DONE, UH, BY LOCAL CONTRACTORS OR EVEN OUR OWN EMPLOYEES, UH, VERSUS OUTSIDE WORKERS COMING FROM OUTSIDE OF THE METRO AREA? COUNCILWOMAN ANY PROJECT WE HAVE, WE TAKE FOR ECONOMIC DEVELOPMENT DEPARTMENT, THEY PUT A LOCAL AND MINORITY REQUIREMENT ON EVERY PROJECT.
WE HAVE SOME PERCENTAGE LOCAL REQUIREMENT, AND ALSO CONSTRUCTION IS REALLY A VERY DIFFICULT FIELD.
EVEN THEY MAY BE OUT OF TOWN, BUT THEY END UP HIRING A LOT OF PEOPLE LOCALLY.
THEY BUY MATERIAL ALSO LOCALLY.
MAJORITY OF OUR CONTRACTOR EVEN, THEY MAY BE OUT OF STATE, BUT THEY HAVE A BIG OFFICE HERE AND THEY EMPLOY PEOPLE FROM SAN ANTONIO.
AND AGAIN, THEY BUY MATERIAL FROM SAN ANTONIO.
SO, UM, DO YOU HAVE, UH, AN IDEA OF HOW MANY PEOPLE ARE LOCAL VERSUS NOT LOCAL? NO.
WE CAN ESTIMATE, BUT WE DON'T HAVE OFF IN OUR HAND.
UM, I'D LIKE TO REQUEST THAT INFORMATION IF YOU COULD FOLLOW UP.
AND THEN, UH, SO, AND I'LL TELL YOU WHY I ASK, UM, MAYBE THERE YOU RUN OUT OF LOCAL CONTRACTORS LIKE THEY DID IN D THREE, BUT I WAS RECENTLY AT A CONSTRUCTION PROJECT IN GOING ON IN ONE OF THE DISTRICT, IN MY DISTRICT IN ONE OF THE PARKS.
AND I SPOKE WITH THE, WITH THE WORKERS, REALLY GREAT GUYS, BUT THEY DROVE IN FROM DALLAS, UH, ON SUNDAY NIGHTS OR MONDAY MORNINGS, AND THEN THEY DROVE OUT ON SATURDAYS.
AND, UH, WHICH IS LIKE YOU SAID, THEY, THEY BUY MATERIALS LOCALLY.
THEY'RE PROBABLY EATING LUNCH LOCALLY.
THEY ALL SAID THAT THE FOOD HERE WAS MUCH BETTER THAN IN DALLAS.
SO THEY WERE VERY HAPPY TO COME TO SAN ANTONIO.
BUT IT DID MAKE ME WONDER, UH, YOU KNOW, WITH US HAVING SO MANY PEOPLE OUT OF WORK, UH, HOW CAN WE NOT FIND, UH, LOCAL PEOPLE TO, TO DO THAT? SO I, I'D LIKE TO EXPLORE THAT, UH, A LITTLE MORE.
I'D, I'D RATHER IT, YOU KNOW, THAT MONEY BE GOING, UH, LOCALLY.
UM, THE OTHER QUESTION I HAVE, UH, HAS TO DO WITH THE, UH, CHILD SAFETY FUND.
I BELIEVE THAT'S HOW WE FUND THE CROSSING GUARDS, IS THAT RIGHT? THAT IS CORRECT.
SO ARE WE ANTICIPATING, I MEAN, WITH, UH, WITH THINGS BEING REMOTE AND NOT REMOTE, WHAT DOES THAT LOOK LIKE FOR CROSSING GUARDS THIS YEAR? UH, WHAT WE HAVE IN THE BUDGET AT THIS POINT, COUNCILWOMAN FOR 2021, IS THE CONTINUATION OF THE PROGRAM AS WE HAVE BEEN RUNNING IT IN THE PAST.
SO WE STILL HAVE BUDGETED FOR THOSE, UH, SCHOOL CROSSING GUARDS.
UH, GRANTED AS, UM, WE CONTINUE CONVERSATIONS THAT WILL IMPACT BEGINNING OCTOBER ONE, WE MAY HAVE TO CHANGE THAT, THAT OPERATION, BUT AS OF NOW IS, IS BUDGETED, UM, LIKE WE DO IT EVERY YEAR.
AND SO ARE THE CROSSING GUARDS BEING PAID RIGHT NOW? UM, THEY ARE NOT PAID BY THE CITY RIGHT NOW.
UH, IF THEY'RE NOT UTILIZED, UH, TYPICALLY SINCE THIS, OUR EMPLOYEES WORK, UM, SOME OF THEM A FEW HOURS A WEEK WHEN THERE IS NO SCHOOL, UM, THEY'RE, THEY'RE NOT RECEIVING FUNDS FROM THE CITY, THEY, THEY TYPICALLY GO INTO UNEMPLOYMENT FOR THAT PERIOD OF TIME.
UM, ABOUT HOW MANY CROSSING GUARDS DO WE HAVE WHEN WE'RE FULLY GOING? UM, WE ARE AUTHORIZED FOR ABOUT 260 COUNCILWOMEN, ROUGHLY.
UM, I MEAN THAT'S A, THAT'S A LOT OF PEOPLE.
UH, DID WE GIVE THEM ANY ASSISTANCE IN, UH, PROCURING UNEMPLOYMENT OUT OF HR? I WILL HAVE TO CONFIRM THAT WITH, UM, UM, I WANNA SAY WE DID COUNSEL EM AND I WILL CONFIRM WITH OUR HUMAN RESOURCES DEPARTMENT.
AND AGAIN, AND I UNDERSTAND IT'S ONLY, IT'S ONLY A PART-TIME EMPLOYMENT FOR THEM, BUT, BUT YOU KNOW, SOME OF THEM ARE, ARE OLDER AND THEY HAVE, UM, YOU KNOW, FEWER, UH, OTHER EMPLOYMENT OPTIONS AT, AT THAT POINT IN THEIR, IN THEIR CAREERS.
AND REMIND ME, IS THAT, UH, OPERATED OUT OF THE POLICE DEPARTMENT OR OUT OF PUBLIC WORK? UH, IT'S OPERATED OUT OF THE
[01:45:01]
POLICE DEPARTMENT.AND THAT'S BECAUSE THE CHARTER HAS THEM ASSIGNED TO GROUND TRANSPORTATION? OR, OR WHY IS THAT? UM, I WILL CONFIRM COUNCIL COUNCILWOMAN, BUT I BELIEVE, UH, IT WAS MANAGEMENT DECISION MADE, UH, MANY YEARS AGO.
AND, UH, THAT WE HAVE, UH, CONTINUED.
I DON'T BELIEVE IT'S IN THE CHARTER.
WELL, IT MIGHT NOT NOW THAT WE'RE, UM, OR THAT YOU ARE, I DON'T WANNA TAKE THE CREDIT
IT SEEMS LIKE IT'S, THAT'S MORE TRANSPORTATION MANAGEMENT, BUT IT IS OPERATIONAL ALSO, SO I, I GET IT.
UM, MY UNDERSTANDING IS THAT, UH, SORRY, UH, I'M GONNA SKIP THAT ONE.
I'M GONNA MOVE ON TO MY FAVORITE FUND.
AND MARIA, CAN YOU GUESS WHICH ONE THAT IS? UH, IS THAT A T D COUNCILWOMAN? UH,
I WAS, AND YOU'RE LIKE, HOW COULD I HAVE MISSED THAT? AND SO, UM, YOU KNOW, EAR EARLIER THIS YEAR WHEN WE HAD THAT VERY, UH, EXCITING COUNCIL MEETING ABOUT THE ZOO AND THE PARKING GARAGE, AND THERE WAS $600,000 SPENT ON A SIGN FOR THE PARKING GARAGE, WHICH I DON'T CONSIDER THAT A TRANSPORTATION EXPENSE.
I CONSIDER THAT A MARKETING EXPENSE.
AND, UH, HOMER TOLD US AT THE TIME THAT THAT MONEY HAD BEEN, UH, BUDGETED FROM THE PARKING FUND IN, IN THE CURRENT FISCAL YEAR'S BUDGET.
SO I, I GUESS I DON'T WANNA BE CAUGHT BY SURPRISE, UH, IN THE FUTURE.
I'D REALLY LIKE TO KNOW, UM, HOW THE FUNDS IN THE PARKING FUND, AND FOR THAT MATTER, IF YOU HAVE IT, FOR THE REMAINDER OF THE FUND.
WE REALLY ONLY GO INTO DETAIL ABOUT THE GENERAL FUND, I THINK, UH, HOW THEY'RE GOING TO BE EXPENDED.
SO IF I LOOK AT PAGE 1 76 IN THE BUDGET FOR THOSE FOLLOWING ALONG, I'M SURE COUNCILWOMAN
UM, I SEE THAT OUR, UM, PERSONNEL EXPENSES 4.8 MILLION, BUT WE HAVE CONTRACTUAL SERVICES AT 1.7 AND SELF-INSURANCE, OTHER EXPENSES AT 1.3 AND, AND THEN A LOT OF TRANSFERS TO OTHER FUNDS.
WOULD IT BE POSSIBLE TO GET A BREAKDOWN OF WHAT YOU, WHAT IS WHAT THE CONTRACTUAL SERVICES AND THE OTHER EXPENDITURES ARE? UH, YES.
COUNCIL, MA'AM, WE CAN PROVIDE YOU WITH THAT INFORMATION.
UM, WELL, THANKS EVERY, OH, SORRY.
LASTLY, I WANNA THANK NEFI, I DON'T KNOW IF HE'S ON THE CALL, BUT FOR ALL OF HIS WORK FOR, UH, TRYING TO GET US INTO THE COMMUNITY RATING SYSTEM.
SO FOR ANYONE WHO HAS TO, UH, PAY WHEN WE ALL SHOULD, UH, FLOOD INSURANCE FOR, FOR OUR HOME, ONCE WE'RE IN THE COMMUNITY RATING SYSTEM, WE WILL SEE A DISCOUNT IN THOSE RATES FOR THOSE OF US WHO ARE IN THE, IN THE FLOODPLAIN.
AND THAT'S THE WHOLE POINT BEHIND THE CEILING CHANNEL, IS TO GET THOSE HOMES OUT OF THE FLOODPLAIN.
BUT ONCE THE PROJECT IS DONE, IT STILL TAKES FEMA A WHILE TO GET AROUND TO REDRAWING THOSE MAPS.
UH, BUT AFTER THAT, PEOPLE WILL SHOULD SEE SAVINGS OF ABOUT 20% AT LEAST ON THEIR, ON THEIR FLOOD INSURANCE, WHICH OF COURSE IS GOING UP, UH, AS OUR STORM INTENSITIES GO UP.
SO I WANNA THANK STORM WATER FOR, FOR ALL OF THEIR WORK ON THAT.
AND I WILL GIVE EVERYONE BACK THIS MINUTE AND A HALF TO DO WITH IT, WITH PAY WILL.
UM, AND THIS IS A QUESTION REGARDING OUR, OUR DEBT SERVICE.
UH, WHAT IS THE PROJECTED BUDGET RESERVE FUND FOR FISCAL YEAR 21? COUNCILMAN? ARE YOU TALKING ABOUT OUR PROPERTY TAX? UM, DEBT FUNDS? JUST, JUST THE, NO, THE, THE BUDGET RESERVE.
UH, IS THAT THE GENERAL FUND? GENERAL.
SO WE HAVE, UM, AT THIS POINT, UH, THE 10% BUDGETED RESERVE IS $126.5 MILLION, AND THEN WE HAVE OUR TWO YEAR BUDGET RESERVE THAT WE WILL NEED FOR FISCAL YEAR 2022 AT $89.5 MILLION.
[01:50:01]
ACTUAL, SO IF I ADD THOSE TWO UP, THAT'S, THAT'S WHAT WE HAVE IN OUR RESERVE FUND TODAY, THAT IS THE BUDGETED RESERVE COUNCILMAN TO FISCAL YEAR 2021 STARTING OCTOBER 1ST.AND THAT WILL BE OUR ESTIMATE AT THE END OF SEPTEMBER 30TH, 2021.
SO WHAT IS THE, UM, WHAT'S THE PROPORTION OF THE TOTAL BUDGET, UH, IN, IN THE CITY'S RESERVE FUND TO BE RATED AS FAVORABLE BY CREDIT RATING, CREDIT RATING AGENCIES? SO WHEN THE RATING AGENCIES LOOK AT, UM, LOCAL GOVERNMENTS, UM, AND CITIES, IF YOU WERE TO LOOK AT LIKE MOODY'S METHODOLOGY, YEAH, THEY ALL HAVE DIFFERENT METHODOLOGIES.
THEY WOULD LOOK AT SOMETHING, UH, MUCH HIGHER THAN THAT.
UM, I CAN'T RECALL THE EXACT AMOUNT, BUT THE MEDIAN, I BELIEVE IS AROUND 25 OR 27%.
SO HOW MUCH, HOW MUCH OF THE PROPOSED RESERVE FUND COULD, COULD THE CITY USE, UH, TO FUND, YOU KNOW, NECESSARY PROGRAMS RELATED TO THE PANDEMIC BEFORE IT IMPACTS THE RATING? COUNCILMAN, I'LL TELL YOU, AS WE TALK WITH THE RATING AGENCIES, AND ONE OF THE THINGS THAT THEY LOOK AT CLOSELY IS OUR FINANCIAL POLICIES OF MAINTAINING THAT MINIMUM ENDING BALANCE OF 15%, AS MARIA MENTIONED IN OUR TWO YEAR BUDGET PLAN.
THAT'S WHERE WE END UP IN 22, IS THAT MINIMUM 15% BALANCE ALONG WITH THAT TWO YEAR BUDGET PLAN, THEY NOTE IN THEIR OUTLOOK THAT THEY EXPECT US TO MAINTAIN OUR FINANCIAL POSITION, AND THAT IF WE WERE TO DRAW DOWN ON RESERVES, THAT THAT PUT PRESSURE ON THE RATING.
I COULDN'T TELL YOU EXACTLY WHAT WOULD TRIGGER THAT, BUT, UM, THAT IS SOMETHING CERTAINLY THEY WOULD PAY A LOT OF ATTENTION TO.
BUT IT SEEMS LIKE THEY, THEY'RE, THEY ARE LOOKING AT, UH, AT THINGS THAT WE'RE DOING THROUGH THE CRISES, RIGHT, TO, TO ALLOW US TO REBOUND, UH, AND, AND DEAL WITH SHORTFALLS THAT WE'RE FACING.
SO, UH, MAY, MAYBE THIS IS, YOU KNOW, PART OF A LONGER CONVERSATION, BUT I, I, AGAIN, I'LL JUST, UH, LEAVE THAT HERE.
UH, BUT, YOU KNOW, IF YOU COULD GET BACK TO ME, UH, HOW CAN WE LEARN MORE ABOUT WHAT THEIR EXPECTATION IS AS THIS IS A, A CITY CO CITY COUNCIL, UH, POLICY DIRECTION.
UH, MAYBE WE ALL NEED TO UNDERSTAND THIS A LITTLE BIT BETTER, ESPECIALLY SINCE WE ARE IN A PANDEMIC.
UH, I THINK IT'D BE, IT'D BE VERY IMPORTANT TO, TO KNOW THESE, UM, THESE LIMITS.
YOU KNOW, WHERE ARE WE AND WHAT CAN WE DO? UH, SO THANKS.
UM, SWITCHING GEARS TO, TO RAZZY.
UM, THANK YOU RAZZY FOR THAT PRESENTATION.
AND, UH, NUMBER ONE, I, YOU KNOW, I REALLY, UH, JUST WANNA THANK, UH, YOU AND YOUR GROUP FOR WORKING WITH ME ON A LOT OF, A LOT OF INFRASTRUCTURE PROJECTS AND ISSUES.
AND I BELIEVE AT THE, AT THE END, AT THE END OF THE DAY, WE'RE, WE'RE FOCUSED ON, ON, UM, BEING VERY CREATIVE.
I ABSOLUTELY, UH, AGREE THAT WE'VE GOTTA FIND EVERY, UH, AVAILABLE, UH, OPPORTUNITY TO, TO DEMONSTRATE THAT WE CAN ADD TO THE TOOLBOX, UH, DIFFERENT ELEMENTS, UH, OF, OF DESIGN AND PROJECT AND, AND, UH, CONSTRUCTION TO, TO EXECUTE PROJECTS, UH, THAT FIT OUR CITY.
'CAUSE NOT EVERY PART OF THE CITY IS THE SAME.
AND, UH, AND SO, UH, I I'M GONNA MAKE A, A SMALL REQUEST THAT TWO PEOPLE WE'VE NOT HEARD SPEAK TO THIS COUNCIL THAT I THINK WOULD BE REALLY BENEFICIAL WOULD BE NUMBER ONE, LET'S GET THE CITY ARCHITECT, COME, COME SPEAK TO, TO THE CITY COUNCIL, FULL CITY COUNCIL TO DEMONSTRATE, UH, THE, THE BENEFITS, UH, OF THE CITY ARCHITECT, UH, IN, IN YOUR DEPARTMENT.
AND, UH, UNDERSTANDING WHAT, WHAT HIS ROLE DOES AND HOW IT CONTRIBUTES TO, UH, SOME OF THE WAYS WE, WE THINK ABOUT OUR PROJECTS.
THE SECOND PERSON, UH, WAS ALREADY MENTIONED, OUR PEDESTRIAN MOBILITY OFFICER, TIMOTHY HAYES, UH, TO COME TALK, UH, ABOUT WHAT HE'S DOING DAY TO DAY.
UH, YOU KNOW, I'D LIKE TO LEARN MORE ABOUT BOTH OF THESE OFFICES AND, AND WHAT THEIR RESOURCES ARE.
WHAT RESOURCE RESOURCES ARE AVAILABLE TO THEM, UH, DO THEY, YOU KNOW, HOW ARE THEY, HOW ARE THEY WORKING, UH, WITHIN THE DEPARTMENTS WITH OTHER OTHER DEPARTMENTS? AND DO THEY NEED MORE RESOURCES, UH, TO DO THE, THE JOB THAT THEY'RE DOING FOR, FOR A CITY THAT IS SPREAD OUT OVER 500 SQUARE MILES, THAT'S A BIG JOB.
UH, AND, UH, AND THEN, AND THEN AGAIN, UH, WORKING WITH YOUR EXISTING STAFF, RAZZIE, I MEAN, I, I WANT TO, I WANNA THANK ANTHONY, CHIP, JULIE AND, UH, AND TINO, UH, FOR, FOR, AND GABRIELA FOR ALWAYS, ALWAYS, UH, UM, LISTENING AND, UH, WORKING THROUGH SOME, SOME OF THESE,
[01:55:01]
UM, PROJECTS AS WE'RE TRYING TO EXPAND THE, THE SIDEWALK REPAIR PROGRAM.UH, YOU KNOW, AS YOU, AS YOU HEARD, THIS IS THE REPAIR PROGRAM, I THINK IS, IS SHOWING, UH, NUMBER ONE THAT, THAT THERE ARE PROJECTS THAT THAT NEED TO BE DONE THAT BRING BACK MILES AND MILES OF SIDEWALK AT A, AT, AT A FRACTION OF, OF THE COST OF BUILDING, UH, ALL NEW SIDEWALK, UH, FOR THE ENTIRE, UH, LENGTH WHERE WE CAN, WE CAN ACTUALLY PATCH THE SIDEWALK AND, AND BRING BACK, UH, USABLE SIDEWALK, UH, IN AN, IN AN EFFECTIVE AND EFFICIENT WAY.
UM, I'M ALSO GONNA ASK THAT THE CITY ATTORNEY LOOK AT THE WAY WE INTERPRET, UH, THE WORD MAINTENANCE.
MAINTENANCE IS NOT CONSTRUCTION.
UM, AND, AND THAT'S, THAT'S CRITICAL THAT I POINT THAT OUT BECAUSE THERE'S NOT A SINGLE CONTRACTOR OUT THERE THAT WILL LOOK AT OUR SIDEWALK REPAIR PROGRAM THAT WILL LOOK AT, UH, ANY BROKEN SIDEWALK AND, AND CALL AND, AND CALL THAT, UH, MAINTENANCE.
UH, WHEN YOU HAVE TO DEMOL, UH, DEMOLISH SOME SIDEWALK, CLEAR IT OUT, REPACK IT, UH, REFORM IT, UM, AND, AND POUR, UH, NEW CONCRETE THAT'S CONSTRUCTION.
SO AGAIN, I JUST, I THINK WE'VE GOTTA, WE'VE GOTTA BE CLEAR ABOUT WHAT, WHAT THESE WORDS MEAN AND, AND HOW WE'RE ABLE TO EXECUTE ON PROJECTS THAT HAVE, HAVE BEEN REQUESTED FOR YEARS AND YEARS AND YEARS.
UM, AND, UH, I GUESS, UH, LASTLY, JUST WANNA POINT OUT THAT, UM, YOU KNOW, THE, THE NEEDS OF, OF INFRASTRUCTURE, I THINK, UH, IN OUR CITY, ESPECIALLY IN THE INNER CITY, ARE, ARE SO, SO CRITICAL, UH, AS WE MOVE TOWARDS THE, THE NEW, UM, BOND PROJECTS, UH, AGAIN, I THINK YOU WILL SEE THAT IF YOUR, IF YOUR DISTRICT IS LOOKING FOR MORE DOLLARS FOR SIDEWALKS, UH, LIKE OTHER COUNCIL MEMBERS SAID, WE WERE GRATEFUL THAT OUR, THAT OUR COUNCIL COMMITTEES, UH, WERE VERY, VERY CLEAR AND VERY, UM, FOCUSED ON MAKING SURE THAT THOSE GAPS WERE BEING, UH, UH, ADDRESSED AND, AND TACKLED IN, IN THE, IN THE LAST BOND, THE 2017 BOND.
UH, WE'LL OBVIOUSLY BE MAKING A PUSH FOR MORE OF THAT.
UH, BUT THAT'S, THAT'S WHAT IT TAKES.
SO, UH, AGAIN, HOPEFULLY WE CAN HEAR, UH, FROM OUR CITY ARCHITECT AND JUDICIAL MOBILITY OFFICER IN THE, IN THE NEAR FUTURE ABOUT WHAT'S GOING ON WITH, UH, WITH THE ROLES THAT THEY'RE PLAYING WITHIN PUBLIC WORKS.
CAN I JUST GIVE YOU A QUICK UPDATE ON THE SIDEWALK PREPARED QUESTION? YEAH.
I KNOW YOU HAD REACHED OUT TO ME, UM, LATE LAST WEEK AROUND THAT QUESTION, AND WE'VE BEEN WORKING ON THAT, LOOKING AT THAT.
'CAUSE YOU'RE RIGHT, UH, WHEN WE TALK ABOUT SIDEWALK REPAIR OR WE USE THE WORD REPAIR, UM, OUTSIDE OF SIDEWALKS, THAT TEND TENDS TO MEAN SOMETHING ELSE.
UM, WE'VE BEEN WORKING WITH PUBLIC WORKS AND, AND UNDERSTAND THAT AS WE TALK ABOUT REPAIRING SIDEWALKS, WE'RE REALLY TALKING ABOUT REMOVING DEALS, SECTIONS AND REPLACING THEM WITH NEW SECTIONS, DOING CONSTRUCTION.
SO AS WE WORK WITH PUBLIC WORKS, WE'RE GONNA BE BRINGING BACK TO Y'ALL AND WE'RE GONNA BE CLARIFYING OUR POLICY, UM, OUR ACCOUNTING POLICY AS IT RELATES TO HOW WE CAPITALIZE PROJECTS AND HOW WE CAN BOND FINANCE SOME OF THIS.
UM, WE GOT A FEW DETAILS TO WORK THROUGH, BUT I THINK WE'RE GONNA BE ABLE TO GET THERE BECAUSE TO YOUR POINT, AS, AS YOU, UH, REACHED OUT TO ME LAST WEEK, REPAIR ON THIS CASE ISN'T REALLY REPAIR PER SE.
IT'S REALLY REMOVING ALL SECTIONS OF SIDEWALKS THAT ARE DAMAGED AND UNUSABLE AND ACTUALLY DOING CONSTRUCTION TO PUT NEW, UH, SIDEWALK IN PLACE.
SO, UH, GIMME A COUPLE MORE DAYS AND I THINK WE'LL HAVE A REVISED POLICY THAT GETS US TO WHERE WE NEED TO BE.
SO I JUST WANTED TO SHARE THAT WITH YOU AND, AND THANKS FOR REACHING OUT TO ME LAST WEEK AS WELL.
THAT, THAT REALLY, THAT REALLY MEANS A LOT.
AND I THINK IT'S GONNA CHANGE THE TRAJECTORY OF HOW WE, WE, WE TACKLE SOMETHING LIKE SIDEWALKS.
UH, IN, IN THE END, WE CAN HAVE A GOOD PLAN, BUT IF IT'S, IF IT'S NOT FUNDED, THEN IT'S, IT'S REALLY GONNA GO NOWHERE.
SO, AGAIN, ALL I CAN SAY IS I HOPE THAT, UH, AS WE GET THE FUNDING, THAT UH, WE CAN MAKE SURE THAT WE CREATE THE RIGHT STRATEGY, UH, TO TACKLE THIS.
'CAUSE, UH, YOU KNOW, I FEEL LIKE THAT'S, THAT'S THE LAST ROADBLOCK TO MAKE THIS HAPPEN.
UH, BEN, DO, DO YOU WANNA, YOU KNOW, MAYBE, MAYBE FOR THE, FOR THE OTHER COUNCIL MEMBERS, BECAUSE THE, THE ISSUE THAT COUNCILMAN TREVINO BROUGHT UP LAST WEEK IS SOMETHING THAT POTENTIALLY IMPACTS, UM, UH, REALLY THAT REPAIR OR CONSTRUCTION OF, OF NON-USABLE SIDEWALKS AND HOW WE PAY FOR THAT AND, AND, AND THE COUNCILMAN'S, RIGHT? I MEAN, WHEN WE ADDED THE REPAIR PROGRAM IN THE 2020 BUDGET, WE'RE PRIMARILY LOOKING AT, UH, THE OPERATING BUDGET.
UM, BUT, BUT HIS ISSUE THAT HE RAISED
[02:00:01]
IS THAT WE'RE NOT REALLY REPAIRING IT.WE'RE DEMOLISHING IT, WE'RE CONSTRUCTING IT, LIKE BEN SAID, AND THE IDEA IS THAT IT'S GONNA BE THERE FOR 20 PLUS YEARS AND, AND POTENTIALLY BEING ABLE TO UTILIZE ANOTHER FUNDING SOURCE LIKE THE, UM, THE VAST MAJORITY OF THE SIDEWALK MONEY WE HAVE IS COMING OUT OF THE BOND PROGRAM.
SO, UM, IT REALLY, IT REALLY HAS A POTENTIAL OF IMPACTING, UH, UH, THAT PERFORMANCE AND OPPORTUNITY, UH, THROUGHOUT THE CITY.
YEAH, THAT WAS THE QUESTION, WAS WHETHER WE COULD USE BOND DOLLARS TO DO REPAIR WORK.
AND AS YOU ALL KNOW, MOST OF THE TIME WE CANNOT, UM, FOR MAINTENANCE AND THINGS LIKE THAT, UH, MAINTENANCE ACTIVITIES, WE CAN'T GENERALLY DO THAT.
UH, BUT COUNCIL TTR DID REACH OUT TO ME LAST WEEK AND, AND I'VE TALKED WITH ROSIE AND WE'VE GOT A COUPLE OF FOLKS WORKING ON THIS.
AND AS ERIC DESCRIBED, WE'RE NOT, UM, DOING REPAIR IN THE TYPICAL REPAIR SINCE IT IS REALLY DEMOLISHING BUILDING NEW SIDEWALK, IT HAS A USEFUL LIFE OF GREATER THAN 20 YEARS.
SO WE'RE CHECK MARKING ALL THE BOXES FROM A COMPLIANCE STANDPOINT THAT WE WOULD NORMALLY HAVE TO DO, UM, IN ORDER TO MEET THAT BOND REQUIREMENT.
SO FOR EACH OF YOU, WHAT THAT WOULD DO IS OPEN UP THE ABILITY TO USE SOME OF, UH, SOME OF YOUR BOND ALLOCATION, UH, NOW OR IN THE FUTURE TO DO SIDEWALK REPAIRS.
AGAIN, WE HAVE TO SET SOME PARAMETERS ON HOW WE DO THAT, BUT I, I THINK WE'RE GONNA BE ABLE TO GET TO A WORKABLE SOLUTION AND WE'LL SHARE MORE DETAIL WITH YOU ON THAT PROBABLY WITHIN THE NEXT FEW DAYS.
WE JUST NEED TO WORK THROUGH SOME DETAILS WITH PUBLIC WORKS.
UM, AND THEN I THINK WE'LL BE THERE.
UH, THANK YOU COUNCIL MEMBER TREVINO, UH, THAT IS EVERYONE, UH, WHO QUEUED UP TO SPEAK, UH, ON THESE TWO PRESENTATIONS.
SO, UH, AGAIN, THANK YOU TO OUR STAFF PRESENTATION, MY COLLEAGUES FOR GOOD DISCUSSION.
UH, THE TIME IS 4:08 PM UH, AND THE CITY COUNCIL SPECIAL SESSION IS NOW ADJOURNED.