[1. Discussion and possible action on setting a public hearing date related to the proposed FY2023 Budget for the Fiscal Year beginning October 1, 2022 and ending on September 30, 2023, and discussion on the proposed FY2023 Budget for the Fiscal Year Beginning October 1, 2022]

FIRST, WE HAVE ITEM NUMBER ONE THAT'S GOING TO BE DISCUSSION, POSSIBLE ACTION ON SETTING THE PUBLIC HEARING DATE RELATED TO THE PROPOSED FISCAL YEAR 2023 BUDGET FOR FISCAL YEAR BEGINNING OCTOBER ONE, 2022 AND ENDING ON SEPTEMBER 30TH, 2023, AND DISCUSSION ON THE PROPOSED FISCAL YEAR 2023 BUDGET FOR THE FISCAL YEAR BEGINNING OCTOBER OF 2022.

TANISHA GOOD EVENING, COUNCIL.

SO OUR FIRST ORDER OF BUSINESS, I GUESS IS GOING TO BE THE BUDGET.

SO I DO HAVE A BUDGET POWERPOINT THAT I HAVE UP HERE TODAY.

I ALSO HAVE A HANDOUT SO YOU CAN HAVE IT FOR YOU.

ONE OF THE REQUESTS THAT I DID RECEIVE IS TO ALSO DO A BUDGET COMPARISON THAT IS NOT IN THIS POWERPOINT.

I WAS ABLE TO ADD THAT COLUMN IN AS WELL, SO I'LL PASS THAT OUT REAL QUICK FOR YOU.

OKAY. THANK YOU.

ALL RIGHT. SO AS WE NOTED, WE'RE TALKING ABOUT THE THE FISCAL YEAR 23, WHICH IS THE 2022 TAX YEAR FOR PROPERTY TAXATION.

YOU'LL SEE THAT THIS IS THE CITY OF ANGLETON TAX RATE.

THE CURRENT TAX RATE IS THAT 0.633041.

AND WE ARE PROPOSING THE CITY TO AGREE ON THE VOTER APPROVED RATE, WHICH IS A 0.618760. FOR THE GENERAL FUND.

YOU'LL SEE WHAT YOU'LL SEE.

FIVE COLUMNS. WELL, SIX COLUMNS NOW.

BUT FOR THE PURPOSE OF THIS PRESENTATION, THE FIRST COLUMN IS THE CURRENT YEAR.

SO YOU ALREADY SAW THAT WHEN WE DID OUR BUDGET WORKSHOPS.

AND THEN THE NEXT COLUMN IS THE ORIGINAL PROPOSAL.

THAT'S THE PROPOSED BUDGET YOU HAD PRINTED OUT IN YOUR BINDERS WITH THOSE NUMBERS.

AND SO WHAT WE DID IS WE WENT BACK, WE TALKED TO CITY MANAGEMENT, WE TALKED TO STAFF, AND WE CAME UP WITH THE FISCAL YEAR 2023 BUDGET, WHICH IS IN THE GREEN.

[00:05:06]

THE PROPOSED ORIGINAL PROPOSED HAD A DEFICIT THIS FISCAL YEAR 2023.

ONE DOES STILL HAVE A DEFICIT, BUT NOT AS LARGE 55,000.

SO WE DID REMOVE SOME ITEMS AND AS I GO THROUGH THIS PRESENTATION, I'LL NOTATE WHAT ALL WE DELETED, WHAT ALL WAS ADDED AND WHAT ALL HAS BEEN INCLUDED IN HERE.

SO YOU'LL SEE THAT DIFFERENCE ON THAT FOURTH COLUMN.

THAT MEANS IN THE GENERAL FUND, TOTAL REVENUE ACTUALLY INCREASED FROM THE NOW THIS IS FROM THE ORIGINAL PROPOSAL TO WHAT YOU HAVE IN FRONT OF YOU.

THE GENERAL FUND REVENUE INCREASED BY 1,880,000, WHICH IS AN 11% INCREASE.

AND THEN AS FAR AS THE EXPENSES, WE WERE ABLE TO REDUCE THOSE EXPENSES BY 850,000, WHICH WAS A 5% DECREASE.

SO WE'LL GO ON TO THE NEXT SLIDE AND TELL YOU WHAT THOSE DIFFERENCES ARE.

LIKE I SAID ALSO IN YOUR PRINTOUT, IT HAS THAT BUDGET TO BUDGET COMPARISON.

SO NOT ONLY DOES IT COMPARE THE ORIGINAL PROPOSAL TO YOUR FISCAL YEAR 2023, BUT IT ALSO COMPARES YOUR CURRENT BUDGET, WHICH IS THIS FISCAL YEAR, TO WHAT WE'RE PROPOSING FOR NEXT YEAR. SO WE HAVE THE COMP AND CLASS RAISES IN COLA.

THAT IS GOING TO BE THAT NUMBER IS INCLUDED WITHIN THIS GENERAL FUND NUMBER.

AND SO COUNCIL, ONE OF THE DIRECTIONS WE WERE GIVEN IS, HEY, IF WE LOOK AT THE OPTIONS OF 6% COLAS FOR THOSE THAT ARE PAID UNDER 40,000. AND SO WE DID LOOK AT THAT AND WE GOT THAT NUMBER.

AND THAT'S SOMETHING THAT COLLEEN WAS ABLE TO PROVIDE IN THE END.

WHAT IF WE LOOK AT 4% FOR THOSE EMPLOYEES WAGES THAT ARE 40 TO 60000 AND THEN A 2% FOR EMPLOYEES WHO ARE 60,000 OR ABOVE? AND SO THE NUMBER THAT YOU HAVE IN FRONT OF YOU WITH ONLY THE 55,000 DEFICIT INCLUDES THE 6% RAISE EFFECTIVE OCTOBER 1ST FOR THOSE THAT MAKE UNDER 40, IT ALSO INCLUDES THE 4% AND 2% EFFECTIVE APRIL 1ST FOR THOSE THAT ARE 40,000 OR MORE. ALSO JUST BECAUSE COUNCIL WAS ANOTHER ITEM THAT COUNCIL ASKED FOR IS THE 4% AND 2% AT THE BOTTOM. THOSE ARE THE TOTALS FOR OCTOBER 1ST AND APRIL 1ST.

THE NUMBERS AT THE TOP INCLUDE EITHER THE COMP OR THE COLA, WHICHEVER ONE IS GREATER.

SO JUST TO MAKE THAT REFERENCE THERE.

ON THE NEXT SLIDE, YOU'LL SEE THAT THIS IS THE CHANGES THAT HAVE BEEN ADDED WITHIN THE GENERAL FUND TO COME UP WITH THAT INCREASED REVENUE AND SO WILL THE EXPENSE CHANGES WITHIN THE GENERAL FUND.

SO IT ONCE AGAIN, IT TELLS YOU THAT 6% COLA THAT 4% COLA ACCOUNT, IN THAT 2% COLA ACCOUNT, THE 6% DOESN'T HAVE THAT COMP OPTION THERE BECAUSE IF YOU'RE AT 40,000 OR LESS, THAT 6% IS GOING TO BE WAY MORE THAN WHAT YOUR COMP RAISE WOULD HAVE BEEN.

SO ACROSS THE BOARD THAT 6% COLA WAS MORE.

THEN YOU'LL ALSO SEE THE IT SOFTWARE MAINTENANCE FEES HAVE BEEN ADDED IN FROM OUR LAST BUDGET WORKSHOP.

THOSE ARE THE THINGS THAT JASON POINTED OUT WERE ALREADY EXISTING SOFTWARE THAT HE JUST NEEDED TO CONTINUE TO PAY THAT MAINTENANCE ON.

SO WE ADDED THOSE BACK IN THE BUDGET AND THEN ORIGINALLY THE ENTERPRISE WAS 373,000.

WE HAVE RECEIVED NOTICE FROM THE ENTERPRISE THAT NUMBER WE LOOK TO GET THAT FLEET IN PROBABLY MARCH OR APRIL.

SO WE WERE ABLE TO REDUCE THAT NUMBER FOR 373000 TO 190000.

AND THAT HAS BEEN ADDED TO THE BUDGET.

AND THAT'S AGAIN, THAT'S A GUESS.

SO WHAT THEY'RE TELLING US WHAT THE MARKET UPDATES ARE FOR VEHICLES, WE'RE TRYING TO, YOU KNOW, NOT TAX THE BUDGET OR AND I THINK THEY'LL BE LATER TO BE HONEST WITH YOU.

WE'LL SEE WHAT THEY END. ALL RIGHT.

ALSO, ONE OF THE OTHER THINGS WE ADDED ON THE EXPENSES ON THE GENERAL SIDE IS A WATER FUND TRANSFER, AND THAT INCLUDES ADMIN COSTS AND THEIR ENTERPRISE PORTION OF THOSE NEWLY LEASED VEHICLES.

SO IT'S NOT ALL JUST ON THE GENERAL FUND.

NEXT SLIDE, THE ITEMS THAT WE REMOVED FROM THE EXPENSE CATEGORY.

SO THIS IS WHAT ACTUALLY HELPED FLATTEN THAT BUDGET OUT.

SO PAYROLL WAGES, WE COMPLETELY FLATTEN THAT ITEM.

AS YOU CAN SEE, WE DECREASED WAGES BY 630,000.

WELL, WHAT WE DID THERE IS WE REMOVED ALL OF THE NEW POSITIONS THAT WERE REQUESTED THERE.

AND WE TOOK WE WENT INTO OUR PAYROLL SYSTEM.

[00:10:02]

WE SAID, OKAY, AS OF APRIL 1ST, WHAT WERE THE WAGES THAT WE WERE PAYING? AND WE CONTINUED THAT FLAT THROUGHOUT THE NEXT FISCAL YEAR AND FILLED ALL OF OUR VACANCIES.

SO WE'RE 100% STAFFED.

THIS IS THAT NUMBER.

AND REMEMBER ONCE AGAIN I SAID, THIS IS WHAT WE'VE ADDED.

SO WE DID STILL ADD THE COLA'S IN THERE, BUT THIS IS WAGES 100% STAFFED WITH THOSE COLA COMPS.

AND THEN AS FAR AS HEALTH INSURANCE COSTS, THAT NUMBER DID INCREASE.

WE LOOKED AT WHAT OUR AVERAGE WAS BASED ON WAGES THAT WE CURRENTLY PAY.

WE ADDED IN THAT PERCENTAGE INCREASE THAT HR SPOKE ABOUT.

AND SO THAT INCREASED BY EXTRA 171,000.

TRAVEL AND TRAINING, WE COMPLETELY FLATTEN THAT BUDGET.

SO WHATEVER OUR DEPARTMENTS HAVE THIS FISCAL YEAR FOR THEIR TRAVEL AND TRAINING IS WHAT THEY'LL HAVE IN THEIR BUDGET FOR NEXT FISCAL YEAR.

SAME THING FOR SUPPLIES WE FLATTEN THAT WHAT YOU HAVE THIS YEAR IS WHAT YOU'LL HAVE NEXT YEAR.

SIDEWALK BUDGET.

WE DID REMOVE THAT BUDGET OF 100,000.

AND THEN CITY HALL MINOR BUILDING REPAIRS.

WE JUST REDUCE THAT NUMBER BY 10,000.

WE ALSO HAD MISCELLANEOUS CAPITAL EQUIPMENT REQUESTS IN THERE AND WE REMOVED THAT $6,000 AND THEN THE CONTINGENCY BUDGET THAT WAS 25,000, WE REMOVED THAT OUT OF GENERAL FUND AND THEN A COMP PLAN THAT WAS BASICALLY A CARRYOVER FROM THIS YEAR.

IT WAS ALL IN ONE LUMP DEPARTMENT FOR ALL COMP PLANS.

BUT SINCE WE DIVIDED THAT AMONGST THE 6%, 4% AND 2%, WE DIDN'T NEED IT IN ONE PLACE.

SO WE REMOVED THAT LUMP.

AND THEN THE LAST ONE WAS THE GRANT PREP BUDGET.

WE REMOVED THAT BUDGET AS WELL TO 45,000.

ONTO THE GENERAL FUND REVENUE.

THESE ARE THE CHANGES THAT YOU'LL SEE WITHIN THIS FISCAL YEAR 2023 COLUMN.

AND ONE OF THE MAIN THINGS THAT YOU'LL SEE ON THAT FIRST BOX IS THE CERTIFIED APPRAISED VALUES CAME IN, AS THEY SHOULD HAVE IN JULY, AT JULY 25TH.

AND SO WE WERE ABLE TO UPDATE THOSE NUMBERS.

AND SO THESE ARE ACTUALLY OUR CERTIFIED NUMBERS.

AND THOSE NUMBERS INCREASED OUR REVENUE BY 856,000.

IF WE GO WITH THE VOTER APPROVED RATE.

ORIGINALLY, YOU HAD THE NO NEW REVENUE RATE IN THERE, BUT WITH THE VOTER APPROVED, IT DOES INCREASE IT BY 856,000 JUST FOR THE PROPERTY TAX THAT.

YOU'LL HAVE YOU'LL SEE THAT SALES TAX REVENUE.

WE DID INCREASE THAT PERCENTAGE.

JUMP IN THERE.

ALSO, SOLID WASTE.

AND THEN ONCE AGAIN, THAT TRANSFER THAT WE RECEIVE FROM WATER FUND FOR ADMIN COSTS AND THEN ALSO ENTERPRISE AND THEN WE FLATTENED OUT OUR COURT FINDS PERMIT AND LICENSES THOSE BUDGETS WHAT WE HAVE FOR THIS FISCAL YEAR WE JUST KEPT AT THE SAME FOR NEXT YEAR.

ANY QUESTIONS CURRENTLY ON THE GENERAL FUND? BEFORE WE MOVE TO WATER.

I DO. YOU GO BACK A SLIDE, PLEASE.

SOLID WASTE REVENUE.

THAT'S A PASS THROUGH, THOUGH, RIGHT? SO IF IT INCREASES 130,000, YOU HAVE AN ADDED EXPENSE OF 130,000, CORRECT? RIGHT. SO YEAH, WE STRAIGHT THROUGH TO WASTE CONNECTIONS, RIGHT.

SO BUDGETARY, IT DOESN'T HAVE AN EFFECT ON US.

RIGHT. BUT I WAS JUST EXPLAINING WHAT THAT INCREASE WAS.

YEAH JUST MAKING SURE, THERE'S NEW PEOPLE ON HERE.

WE'LL MAKE SURE. GOTCHA. NO PROBLEM.

AND THEN THE CERTIFIED APPRAISAL THAT YOU SAID IS THAT THE VOTER APPROVAL RATE, RIGHT? THE 806000.

HOW MUCH DID YOU HAVE AGAIN? FOR NO NEW REVENUE.

ADDITIONAL HOUSES ON THE GROUND.

ADDING HOW MUCH? SO NEW PROPERTY ADDED 128,000 THIS YEAR.

WELL, FOR NEXT YEAR, 128.

774 WAS THE NUMBER, RIGHT? AND THEN ANOTHER QUESTION I HAD THAT I WAS KIND OF CONFUSED ON A PREVIOUS SLIDE, BUT WE CAN TALK ABOUT IT HERE.

THE TRANSFER ADDED FROM THE GO BACK.

YEAH, THAT WAS FINE. THAT WAS A SLIDE.

I WAS ACTUALLY GOING TO TALK TO THE WATER FUND.

MM HMM. THAT 300 AND THOUSAND.

THAT'S BENEFITING THE GENERAL FUND, RIGHT? BECAUSE YOU'RE TAKING OUT OF THE GENERAL FUND AND MOVING IT TO THE WATER FUND.

NO, WE'RE TAKING IT OUT OF THE WATER FUND AND MOVING IT TO THE GENERAL FUND, RIGHT? YES. YES. SO THAT'S AN INCREASE THERE.

YES. SO WE'RE GETTING FOR THE NO NEW REVENUE.

WE'RE GETTING AN EXTRA 200.

WHAT WAS THE NUMBER AGAIN? 128 128,000 PLUS WE'RE GETTING THE 370,000 FROM THE WATER FUND, WATER AND SEWER FUND.

[00:15:04]

SO THOSE TWO TOGETHER ARE ADDED REVENUE FOR THE GENERAL FUND TO OPERATE.

RIGHT NOW, THE ONLY THING IS YOU HAVE TO REMEMBER THAT WE HAVE THE $600,000 WORTH OF BOND PAYMENT FOR THE 2022 BOND.

OF THAT 10 MILLION, IT'S CUTTING.

IT'S COMING CLOSE TO THAT NUMBER.

RIGHT? RIGHT.

SO THAT'S WHERE I WAS GOING WITH IT.

YOU KNEW WHERE I WAS GOING WITH IT. RIGHT.

BUT NOW, REMEMBER, THE ONLY THING IS TO KEEP IN MIND, THOUGH, EVEN WITH THOSE EXTRA REVENUE SOURCES, ONE OF THE THINGS THAT WASN'T ORIGINALLY IN THAT BUDGET WAS YOUR ENTERPRISE, WHICH WAS ANOTHER 200,000 THAT WE PUT BACK IN THERE, PLUS THE COLA AND COMPS.

THAT WAS THE DIRECTION COUNCIL GAVE THAT WE WANTED TO INCLUDE.

SO EVEN THOUGH YOUR REVENUE INCREASED YOUR AND YOUR EXPENSES DECREASED, YOU KNOW, THAT'S WHY WE FELT WE'LL PLUG IN THAT VOTER APPROVAL RATE TO SEE WHAT THAT NUMBER GETS US.

BECAUSE THAT'S THE HIGHEST YOU CAN.

BUT WE'LL TALK ABOUT THAT LATER.

WE'LL TALK ABOUT THE BUDGET NOW.

GO AHEAD AND GO TO THE WATER.

ALL RIGHT. I'LL SAVE MY QUESTIONS FOR THIS.

[INAUDIBLE].

OH, I KNOW. THE WATER IS GOING TO BE JAW DROPPING.

ALL RIGHT, SO HERE'S THE WATER FUND BUDGET.

SO THE BASICALLY THE TOTAL REVENUES INCREASE FROM ORIGINAL PROPOSAL THAT YOU HAD IN YOUR BINDER TO THIS FISCAL 23, ONE BY 30%.

AND THAT'S BECAUSE WE ACTUALLY WENT BACK AND WE SAID, OKAY, WE EXPECT TO GET MORE WATER INCOME FROM NEW HOMES, NEW SUBDIVISIONS, YOU KNOW, AND THAT IS AN INCREASE ALSO WITH THE SEWER AS WELL.

SO WE DID INCREASE THOSE NUMBERS THERE AND THOSE WERE ACTUALLY THOSE TWO THINGS CHANGE.

AND THEN THE TRANSFER THAT WAS THAT YOU HAD THAT ADDITIONAL TRANSFER FROM YOUR WATER FUND TO YOUR GENERAL FUND.

SO THOSE THAT ACTUALLY DROPPED, WE REDUCED SOME OF THAT TRANSFER AND SO THAT NET CHANGE WAS 135,000 DROP ON THE WATER SIDE REVENUE.

SAME THING HERE WE DID AS FAR AS WAGES WERE CONCERNED, WE FLATTENED THAT NUMBER OUT.

BUT I CAN ACTUALLY GO TO THE NEXT SLIDE.

SO WHAT WE THAT TRANSFER THERE, YOU SEE IT'S 1.3 MILLION.

BUT THAT'S BECAUSE WE INCLUDED THAT TRANSFER, LIKE I SAID, TO THE GENERAL FUND.

BUT IN ORDER FOR US TO BALANCE OUT THAT WATERFRONT, IT'S GOING TO HAVE A TRANSFER FROM ITS FUND BALANCE AS WELL.

AND SO THAT IS WHAT MAKES UP PART OF THAT OTHER ITEM.

AND IT WILL GO IN DETAIL ON ANOTHER SLIDE.

SO THESE ARE THE EXPENSES CHANGE.

EXCUSE ME. I THINK IT WOULD BE PRUDENT IF YOU NOT ONLY EXPLAIN TO US ON THE COUNCIL, BUT ALSO THE PEOPLE SITTING IN.

HOW THE WATER FUND.

HOW DOES THE WATER FUND GET FUNDED? AND WHERE IS THAT WATER MONEY GO? OKAY. YEAH.

ALL RIGHT. NO PROBLEM. SO AS YOU CAN SEE, THIS IS THE WATER FUND BUDGET.

SO WE GET THE REVENUE FROM YOUR WATER BILLS.

YOU KNOW, YOUR REVENUE YOU GET FROM PAYING YOUR WATER BILLS, THAT WATER IN THAT SEWER, THAT INCOME THAT COMES IN.

ALSO, WE HAVE ANY FINES AND PENALTIES THAT WE CHARGE WE GET THOSE FUNDS FROM.

THAT'S HOW WE GET THE FUNDS ALSO IN OUR WATER FUND.

THOSE EXPENSES HERE ARE JUST THE HIGHLIGHTS OF THEM, NOT NECESSARILY THE DETAIL OF IT, BUT IT MAKES UP YOU HAVE YOUR, OF COURSE, YOUR PERSONNEL, YOUR FUEL EXPENSE, REPAIR AND MAINTENANCE, ANY OF THOSE EMERGENCY SITUATIONS THAT NEED TO HAPPEN WITHIN THE CITY.

THAT INFRASTRUCTURE THAT COMES FROM THAT IS WATER RELATED WOULD COME FROM THIS WATER FUND.

SO WATER FUND EXPENSES ARE SPECIFICALLY TO WATER.

YES, WATER. YOU DON'T MOW GRASS, YOU DON'T FIX TENNIS COURTS AND STUFF LIKE THAT.

IT IS SPECIFICALLY FOR WATER, WATER STUFF.

OKAY. THANK YOU.

LET'S HOPE THAT WAS IMPLIED.

BUT, YOU KNOW, WE'VE GOT ALL KINDS OF PAYROLL COSTS AND HEALTH CARE COSTS ALL OVER THE CITY.

BUT SO JUST EVERYBODY KNOWS THAT WATER MONEY AND SERVE MONEY IS JUST FOR.

AND THAT IS AND THAT'S PRIMARILY PUBLIC WORKS DEPARTMENT.

RIGHT. EXACTLY. SO YOU MAY HAVE PERSONNEL IN HERE IN THIS WATER FUND, BUT THOSE ARE THE STAFF THAT SUPPORT THAT INFRASTRUCTURE AND THAT WATER SEWER SERVICES.

AND LIKE YOU SAY, PUBLIC WORKS SERVICE.

ALL RIGHT. SO THE EXPENSES THAT YOU'LL SEE CHANGE IN THE WATER FUND ONCE AGAIN, THAT PAYROLL WAGES ARE FLATTENED THERE AND BRINGING THEM FULLY STAFFED

[00:20:02]

AT 100%.

SO NO NEW POSITIONS THERE, JUST NO VACANCIES.

HEALTH INSURANCE THAT HAS WELL, THAT ACTUALLY DECREASED BECAUSE WE LOOKED AT THE AVERAGE AND WE SAY, OKAY, THIS IS ABOUT THE AVERAGE OF WHAT WE SPEND PER EMPLOYEE ON HEALTH INSURANCE.

AND THEN WE ADDED IN THAT 20% INCREASE THAT WE'RE GIVING DIRECTION ON OTHER PERSONNEL.

THAT'S JUST THINGS LIKE YOUR RETIREMENT AND ITEMS LIKE THAT.

SO THAT ACTUALLY INCREASED BY 57,000 BECAUSE WHEN YOUR WAGES INCREASE, SO DOES YOUR PERSONNEL AND YOUR BENEFITS INCREASE.

YOU'VE GOT YOUR TMRS AND THINGS LIKE THAT.

SO THOSE ITEMS ALSO INCREASED WITH THE WATER FUND.

WE ALSO FLATTEN THOSE SUPPLIES, BUT WE ALSO KEPT BEING $18,000 WORTH OF WELCOME KIDS.

AND SO THE WELCOME KIT IS SOMETHING JUST SO I CAN EXPLAIN.

THE WELCOME KIT IS SOMETHING THAT ALL OUR NEW RESIDENTS RECEIVE WHEN THEY COME TO THE WATER DEPARTMENT AND THEY ESTABLISHED A NEW HOME AND THEY'RE MOVING IN AND THEY WANT TO GET THEIR WATER SERVICE ON.

WE GIVE THEM THIS WELCOME KIT THAT TELLS THEM ABOUT CODE RED AND THE EMERGENCY ALERTS THAT HAPPEN HERE ABOUT OUR VOLUNTEER FIRE DEPARTMENT AND JUST DIFFERENT THINGS ABOUT ANGLETON SO THEY CAN GET FAMILIAR WITH.

AND THEN WE HAVE ALSO THE WA PURCHASE IN THERE.

AND SO THAT IS IN THERE AS WELL.

AND THAT'S SOMETHING THAT WILL BE BROUGHT TO COUNCIL, I'M SURE, AT ANOTHER DAY.

AS FAR AS THE INCREASE.

AS FAR AS HOW IT AFFECTS OUR NORMAL RESIDENTS AND THAT WATER BILL.

WE DID REMOVE 100,000 OF THE INFRASTRUCTURE MAINTENANCE OF 100.

WELL, I JUST SAID 100,000.

WE DID REMOVE CAPITAL SOME CAPITAL EQUIPMENT PROJECTS IN THERE AS WELL OF 203,000.

SO WE CAN START WITH A CLEAN SLATE AND COUNCIL CAN ADVISE ON WHAT YOU WANT ACTUALLY IN THOSE BUDGETS.

WE DID ADD THE ADMIN COSTS AND ENTERPRISE TRANSFER LIKE WE STATED EARLIER, THAT GOES TO THE GENERAL FUND.

AND ALSO THE LAST THING WE DID WAS WE REMOVED THE CARRY OVER CAPITAL EXPENSE TO COST ADDITIONAL OF 8000.

AS FAR AS WATERFRONT REVENUE IS CONCERNED, IS CONCERNED.

WE HAVE THAT RATE INCREASE THERE OF 12% AND THAT GENERATES ANOTHER $687,000.

AND THEN WE HAVE THE SEWER RATE PREDICTION THAT WE HAVE IN THERE.

AND LIKE I SAY, THESE ARE JUST ESTIMATES.

AND WHAT WE ARE ESTIMATING, WHAT MAY HAPPEN, WHAT COUNCIL MAY VOTE ON, BUT THAT CAN BE VOTED ON AT ANOTHER DAY.

BUT FOR BUDGET PURPOSES, WE HAVE THESE NUMBERS IN.

WE HAD A NEGATIVE INCOME, WE HAD A NEGATIVE REVENUE NUMBER IN THERE, WHICH SHOULD JUST BE AN EXPENSE.

SO WE JUST MOVE THAT ITEM.

SO THAT WAS THE ONLY DIFFERENCE THERE.

AND WE DID A TRANSFER FROM FUND BALANCE.

JUST SO YOU KNOW AS WELL.

ONE OF THE THINGS THAT I DID PUT ON HERE IS OUR ENDING FISCAL YEAR 2021 FUND BALANCE FOR WATER FUND.

SO YOU CAN BE IN THE KNOW OF WHAT THAT NUMBER IS.

THAT IS ALL I HAVE FOR THE BUDGET AND I AM OPEN FOR DISCUSSION BEFORE WE MOVE ON TO THE PROPERTY TAX.

IF YOU GO INTO MORE DEPTH, PLEASE, ON THE 1.3 MILLION THAT YOU'RE IN THE WATER FUND.

WHY THAT'S IMPORTANT.

WHERE THAT'S COMING FROM.

I WANT TO UNDERSTAND THAT JUST A LITTLE BETTER ON THE TRANSFER.

YES. SO ONE OF THE MAIN THINGS WAS WE HAD A NEGATIVE TRANSFER COMING IN INTO THE WATER FUND OF 850,000 AS REVENUE, BUT IT WAS COMING FROM FUND BALANCE.

SO WE JUST WE JUST MOVED THAT TO ACTUALLY AN EXPENSE TO UNDER THE WATER FUND EXPENSES.

AND WE ACTUALLY SHOWED THAT WAS THE ACTUAL REVENUE COMING IN.

SO WHAT DOES THAT DO TO OUR FUND BALANCE IN THIS ACCOUNT? WHERE ARE WE AT NOW? SO SINCE THIS FISCAL YEAR ISN'T OVER YET, WE WERE AT 4 MILLION AND WE ARE REMOVING WE'RE REMOVING ANOTHER 1 MILLION, 1.3 MILLION.

SO IT'LL BRING US ABOUT 3.4 MILLION.

AND DOES THAT 1.3 HAVE ANYTHING TO DO WITH ANY OF THE CAPITAL EXPENSES WE'VE BEEN DOING THIS YEAR THAT'S DRAWING THAT DOWN? WELL. SO THAT'S THE THING.

THIS IS THE END OF LAST YEAR'S FISCAL FUND BALANCE, RIGHT?

[00:25:05]

SO THE 1.3 IS NOT EVEN CONSIDERING THIS YEAR.

IT IS ONLY CONSIDERING NEXT YEAR'S FUND BALANCE DRAWDOWN.

SO TO BALANCE, WE'RE GOING TO TAKE FROM FUND BALANCE.

CORRECT. SO OUR RATE INCREASES ARE NOT KEEPING UP WITH COSTS.

RIGHT. BUT WHAT I'M TRYING TO GET AT IS WHERE IS THE COST? WHERE IS THE ADDED COST COMING FROM? THAT'S NOT REFLECTED IN THE RATES.

[INAUDIBLE]. SO YOUR ADDED COST IS COMING FROM YOUR EXTRA PURCHASE FROM BWA AND YOUR 0.5 THAT YOU COMMITTED TO.

SO THAT IS A LARGE EXTRA COST.

IF YOU LOOK ON THE WATER FUND, YOU'LL SEE THAT THAT NUMBER INCREASED UNDER WATER PURCHASE BWA.

DO I HAVE A LITTLE. AWE SHUCKS I THOUGHT I HAD A LASER.

OK. BUT YOU'LL SEE.

OH, OKAY.

BUT YOU'LL SEE.

IT'S LIKE THE SIXTH LINE DOWN ON EXPENSES.

IT SAYS WATER PURCHASE BWA.

YOU'LL SEE THAT THE CURRENT YEAR WE'RE AT 2.3 MILLION.

WELL, NEXT YEAR WE'RE LOOKING TO GO TO THREE POINT ALMOST 2 MILLION.

SO THAT IS A PRETTY LARGE JUMP THERE THAT YOU'RE COMMITTING TO.

AND SO WE CAN'T REFLECT THAT FULL MILLION DOLLARS WORTH OF REVENUE NEXT YEAR BECAUSE WE WON'T HAVE THAT MANY HOMES COMING ON BOARD TO GET A WATER BILL. SO WE WILL EAT SOME OF THAT FOR A LITTLE WHILE UNTIL WE GET ALL THESE NEW DEVELOPMENTS ONLINE AND WE GET THAT WATER REVENUE IN TO TRY AND START EVEN THAT OUT. SO YOU WILL EAT SOME OF THAT FOR NOW.

ON THIS SLIDE HERE.

THE WATER INCOME AND THE SEWER INCOME.

WOULDN'T WE SEE A REFLECTION OF THE NEW HOMES ON THE GROUND? AND I SEE THAT YOU'RE RAISING FROM 4.4 ORIGINAL TO YOU'RE ALREADY AT 4.5 CURRENT YEAR.

SO ONCE AGAIN, THE CURRENT YEAR IS FULL YEAR BURDEN, RIGHT? THAT'S A FULL YEAR FORECAST.

AND YOU THINK WE'RE GOING TO GO TO 5.1? BUT YOU WERE UNDER YOUR BUDGET.

UNDER FORECASTING THE REVENUE THIS YEAR, DO YOU THINK YOU MIGHT BE UNDER FORECASTING THE REVENUE THIS YEAR AND THAT'S ON THAT AREA? I MEAN, ALL THE HOUSES? THAT'S WHAT I'M TRYING TO.

SO HOUSES GO IN PHASES? RIGHT. SO WE'RE NOT GOING TO GET ALL THE HOUSES AT ONE TIME.

SO THAT'S WHY I'M LIKE, OKAY, WELL, WE CAN DO THE 12% INCREASE THAT WE HAVE ON HERE WITH AND THAT'S WITH THE $1 BASE RATE THAT I'M PUTTING IN THERE JUST SO WE CAN, YOU KNOW, CALCULATE WHAT THAT EXPECTATION IS.

BUT JUST REMEMBER, THIS IS JUST AN ESTIMATION, CORRECT? YEAH. I'M JUST SAYING, IF, YOU KNOW, MAYBE YOU'RE LOOKING AT TRENDS OF THE LAST THREE YEARS BECAUSE IT'S KIND OF BE ANY COMPARISON PAST THREE YEARS WOULD BE VERY DIFFICULT, BUT BASED OFF THE GROWTH RATE THAT WE'RE SEEING.

SO I'M THINKING WHAT YOU'VE SEEN SO FAR.

YOU'RE RIGHT, JEFF. [LAUGHTER].

LIKE RIVERWOOD RANCH? THERE'S A LOT MORE HOUSES IN PROCESS RIGHT NOW THAN THERE WERE AT THE BEGINNING OF THIS YEAR.

SO AND WE WERE UNDER THE NUMBER IN REVENUE THIS YEAR.

I FIRMLY SUSPECT THAT YOU WERE PROBABLY GOING TO BE UNDER THAT NUMBER THIS YEAR.

SO YOU'RE SAYING YOU EXPECT US TO BE UNDER THAT NUMBER NEXT YEAR? I THINK WE'LL BE OVER THAT 5.1 MILLION.

BASED OFF OF WHAT WE'VE SEEN IN WITH THE HOUSES COMING ONLINE AND WHEN THERE'S GETTING FINISHED AND PURCHASED.

NOW, I WILL SAY PART OF HOW I CAME UP WITH THIS NUMBER IS I DID SPEAK TO OUR BUILDING DEVELOPMENT DEPARTMENT AND SAY, HEY, HOW MANY HOMES DO YOU THINK ARE GOING TO BE ON THE GROUND? AND SO THEY SAID, HEY, YOU KNOW, WE HAVE THESE DEVELOPMENTS THAT ARE COMING.

THEY'RE GOING TO BE BUILDING. BUT ALSO, YOU'VE GOT TO REMEMBER, WE'RE DEALING WITH INFLATION.

AND SO THAT MIGHT SLOW SOME OF THESE PEOPLE DOWN.

AND SO BASED OFF WHAT THEY TOLD ME IS HOW I CAME UP WITH THOSE NUMBERS.

NOW, GRANTED, IT WOULD ALWAYS BE GREAT IF WE ARE OVER THOSE NUMBERS, BUT IT'S JUST LIKE WE TALKED ABOUT SALES TAX AND ALL THE OTHER THINGS.

WE'RE KIND OF PUSHING THAT.

CRYSTAL BALL OUT THERE TO SAY WHATEVER AND LIKE SALES TAX, IF IT'S BETTER THAN WHAT WE PROJECTED, THEN GREAT.

YEAH. NO SLACK TO THE STAFF, BUT I'M A LITTLE AGGRAVATED THAT WE'RE ASKING THE CITIZENS AGAIN HERE THAT HAVE BEEN HERE TO PAY FOR THE ADDITIONAL WATER THAT WE PURCHASED FOR THE FUTURE PEOPLE.

AND THIS YEAR IS ONE OF THOSE TIMES WHERE WE'RE HAVING TO MAKE THAT UP.

THAT'S FRUSTRATING. BUT IF I REMEMBER CORRECTLY, MAYBE I'M WRONG ON THIS, AND YOU CAN CORRECT ME IF I AM.

THAT WAS BEYOND OUR CONTROL.

I'M PRETTY SURE BWA WAS BASICALLY PUSHING OUR BACKS AGAINST THE WALL.

THEY WERE? ABSOLUTELY.

HAVE TO DO IT NOW, OR WE LOSE OUT? THERE'S PEOPLE IN LINE THAT ARE WANTING THAT, WANTED THAT WATER.

AND IF WE DIDN'T GET IT, THEY WERE.

WE WERE IN A POSITION THAT WE HAD TO SECURE IT NOW.

[00:30:01]

I MEAN, I DON'T PERSONALLY I DISAGREE WITH BWA.

THEY'RE NOT A VERY GOOD PARTNER IN MY OPINION, BUT JUST THINKING ABOUT WHO THE ORIGINAL MEMBERS, FOUNDING MEMBERS WERE AND WHAT THEY'RE DOING TO THE PEOPLE THAT ARE TRYING TO.

BUT THAT'S WHY I SAID IT'S NOT AGAINST THE STAFF.

THEIR DRIVING A HARD BARGAIN, THAT'S FOR SURE.

YEAH. THEY'RE GOING OUT AND PURCHASING WATER AND CHARGING US BACK FOR THAT.

SO THEY DON'T HAVE THE WATER EITHER.

ALL RIGHT. THAT'S ALL I GOT.

WHAT DO THE RIGHTS COMPARE TO THE CITIZENRY OUTSIDE THE CITY LIMITS TO THE RATES THAT WE PAY IN THE CITY LIMITS WHEN ROSE GREEN WATER RATES VERSUS MY WATER RATE.

SO I DON'T HAVE THE WATER RATES ON ME RIGHT NOW.

BUT I DO KNOW THAT USUALLY THOSE ON THE OUTSIDE OF THE CITY PAY 25% MORE THAN THOSE THAT DO IN THE CITY OF THE CITY.

SO THEIR BILL IS 25% MORE.

AND THAT'S BOTH IN THE WATER AND THE SEWER.

YES. AND VERY FEW OF THOSE HOUSES WERE FINISHED AT THE BEGINNING OF THIS AT RIGHT NOW.

AND THEY'VE GOT A LOT COMING ONLINE THIS NEXT YEAR.

WE'RE ON FACEBOOK LIVE NOW.

ALL RIGHT. THANK YOU. TO DO THE TONIGHT YOU DO THE THERE'S THE WATER FUND PAY THE BONDED INDEBTEDNESS WE HAVE FOR LIKE WATER TOWERS AND GROUNDWATER STORAGE TANKS.

SO THE WATER FUND DOES HAVE ITS OWN BOND PAYMENTS.

YES. THAT ARE ONLY FOR WATER SERVICES.

YOU.

ALL RIGHT. THAT ALL FOR THE WATER? ANY MORE QUESTIONS? SO JUST A LITTLE ADMIN NOTE.

2.4 MILLION WE BORROWED IT WILL THE PROJECT WILL START ONE SEPTEMBER AND GO FOR 365 CALENDAR DAYS.

BE DONE ONE SEPTEMBER BY 1ST SEPTEMBER 2023.

AND THAT'S THE GROUND STORAGE TANK.

RIGHT. SO THAT'S 2.4 MILLION WE BORROWED LAST YEAR.

YEAH, LAST YEAR. SO WE'RE DOING WHAT WE SAID, BORROWING MONEY.

WE'RE INSTITUTING THE PROJECT FOR WHAT IT'S SUPPOSED TO BE MEANT FOR AND SECURING OUR FUTURE.

AND JUST TO REFRESH THAT WAS OUT OF NECESSITY BECAUSE WE WE NEEDED TO THE TANK TANK IS LEAKING 2 MILLION GALLONS A YEAR OR SOMETHING AND WAS BEYOND PATCHWORK REPAIR AND SO EXPOSED TO DO THE RIGHT THING.

ALL RIGHT. THANK YOU FOR THAT.

ALL RIGHT. SO I DID GO BACK TO REAL QUICK THE GENERAL FUND SLIDE, AND THAT'S JUST BECAUSE WE DO HAVE STILL THE DEFICIT OF THE 55.

I DO JUST WANT TO MAKE A SIDE NOTE THAT PROPERTY TAX REVENUE IS ONLY AT 98% COLLECTION.

IN THE PAST, WE'VE ALWAYS COLLECTED AT LEAST 100% OF OUR PROPERTY TAX AND PREVIOUS YEARS.

SO IF WE DID BRING THAT NUMBER UP, WE WOULD GET AN EXTRA $175,000 IN PROPERTY TAX REVENUE WITHIN OUR BUDGET, WHICH WOULD CLEAR US OF THAT 55,000 DEFICIT, WE'D ACTUALLY HAVE 120,000 SURPLUS.

AND YOU COULD ALSO JUST ADJUST SALES TAX OR COURT REVENUE OR ANY OF THE OTHER VARIABLES OUT THERE THAT WOULD.

MAKE THAT BOUNCE.

RIGHT. I COMMEND YOU FOR THAT, YOU KNOW.

A LITTLE FRIGHTY CAT FACTOR IN THERE.

DID THAT GO AWAY.

OH, YEAH. IS THAT A DIFFERENT OK? YEAH. YOU KNOW, JUST CONSERVATIVELY SPEAKING, RIGHT? MAY NOT GET EVERYTHING YOU WANT.

AND IF YOU GET EVERYTHING YOU WANT ITS COUNT YOUR BLESSINGS, YOU KNOW.

RIGHT.

ALL RIGHT. ANY MORE QUESTIONS BEFORE SHE MOVES ON TO.

THE MEAT AND POTATOES, OR MAYBE IT'S THE BACON SOUR CREAM AND CHIVES, YOU KNOW, PART OF IT.

NO CHIVES, YEAH, ME TOO. ALL RIGHT.

MOVE ON, MISS TANISHA.

ALL RIGHT.

DO YOU NEED TO MAKE? DO YOU NEED TO GO TO THE NEXT AGENDA ITEM? OH, HOLD ON.

I'M NOT. I'M LOST IN MY AGENDA HERE.

SO FOR THIS ONE, WE ACTUALLY NOW HAVE REVIEWED OVER THE BUDGET.

BUT WE DO FOR THIS AGENDA ITEM WE NEED TO SET THE HEARING DATES.

[00:35:04]

I'M ASSUMING YOU ALREADY HAVE THAT.

WHICH ALL ARE PROPOSING FOR THAT.

RIGHT. SO WE'LL ACTUALLY DISCUSS THOSE WHEN WE HAVE IN OUR BUDGET SCHEDULE IS THE PUBLIC HEARING DATE FOR OUR PROPOSED TAX RATE AND BUDGET, AND THAT IS WHAT WE HAVE SCHEDULED FOR AUGUST 23RD.

AND IT'S JUST UP TO COUNCIL, IF YOU WOULD LIKE TO KEEP THAT DATE AND SET IT FOR MAYBE 5:30 FOR THE PUBLIC HEARING BEFORE THAT ORIGINAL COUNCIL MEETING AT SIX OR WHATEVER YOUR DESIGNATION IS.

PERSONALLY, I WOULD LIKE TO KEEP IT AT SIX AND MAYBE WE HAVE TO JUST SLIDE THE OTHER MEETING 30 MINUTES BECAUSE PEOPLE ALREADY KNOW WE START AT SIX AND THEY'RE PRESSED TO GET HERE AT SIX. ANYTHING SOONER.

SO IF THAT'S OKAY WITH COUNCIL AND STAFF WITH COUNCIL AND STAFF.

I AGREE WITH YOU, MAYOR, JUST YOU'VE GOT A SPECIAL THING THAT WE'RE GOING TO HAVE.

LET'S MAKE SURE WE DON'T.

YEAH. THROW A SPECIAL TIME OUT THERE, RIGHT? WE WANNA MAKE IT AS FLEXIBLE FOR THE RESIDENTS SHOULD THEY WANT TO COME AND GIVE COMMENT.

ALL RIGHT. NEXT COUNCILMAN, AUGUST 23RD, AUGUST 23RD O'CLOCK, 6:00.

AND THEN WILL JUST RUN IT TO OUR PEOPLE KNOW OUR OTHER MEETING WILL START AFTER.

AFTER SHORT INTERMISSION.

RECESS WILL GO INTO OUR REGULAR COUNCIL MEETING.

OKAY. DO WE ONLY HAVE ONE.

OR HOW MANY PUBLIC HEARINGS DO WE HAVE? JUST ONE. IF WE DO THE WELL WITH THE VOTER APPROVAL, IT'S ONLY ONE.

OH. OK.

COUNCIL YOU'VE HEARD THE RECOMMENDATION FROM STAFF ON OUR PROPOSED PUBLIC HEARING.

DO I HEAR A MOTION. MR. MAYOR, I MOVE WE SET A PUBLIC HEARING DATE OF AUGUST 23RD AT 6 P.M.

FOR THE PUBLIC HEARING ON THE BUDGET.

SECOND.

MOTION BY MAYOR PRO TEM WRIGHT.

SECOND BY COUNCILMAN BOOTH.

ANY FURTHER DISCUSSION? HEARING NONE. ALL THOSE IN FAVOR SIGNIFY BY SAYING AYE.

AYE. ALL THOSE OPPOSED SAME SIGN? THAT MOTION CARRIES.

SO THAT WRAPS UP ITEM NUMBER ONE.

SO NOW WE'RE GOING TO GO TO THE TOPPING ITEM NUMBER TWO DISCUSSION AND POST ELECTION FOR A RECORD VOTE ON THE 2022 PROPOSED TAX RATE

[2. Discussion and possible action for a record vote on the 2022 Proposed tax rate of $0.618760 per $100 of assessed valuation, also known as the Voter Approval Rate, and determine a date, time and place for a public hearing for the agreed upon proposed tax rate by council.]

OF 0.618760 PER 100 OF ASSESSED VALUATION, ALSO KNOWN AS THE VOTER APPROVAL RATE, AND DETERMINE A DATE, TIME AND PLACE FOR A PUBLIC HEARING FOR AGREED UPON PROPOSED TAX RATE BY COUNCIL.

THAT'S TANESHA. ALL RIGHT.

SO, COUNCIL, WE'RE GOING TO GO AHEAD AND DIVE INTO THE SECOND PORTION OF THIS POWERPOINT PRESENTATION, WHICH IS GOING TO BE OVER THE PROPERTY TAX RATE, THIS PROPOSED PROPERTY TAX RATE, BECAUSE YOU WOULD BE ADOPTING WHATEVER RATE YOU CHOOSE AT A LATER DATE.

AND SO FOR THE PURPOSE OF THIS DISCUSSION AND FOR OUR RECORD VOTE LATER ON, I WANT TO GO AHEAD AND MOVE INTO YOUR NEXT SLIDE, WHICH IS THE BENCHMARK TAX RATES.

HANG ON A SECOND, TANISHA.

SO JUDITH CHIMED IN AND SAID, WE NEED TO CALL A PUBLIC HEARING AND THEN AUTHORIZE THE PUBLIC NOTICE.

OH. IS THAT HOW THE VOTE NEEDS TO THE MOTION NEEDS TO BE? WE CALLED THE PUBLIC HEARING DOING.

WE SAID, BUT I THINK WE NEED TO AUTHORIZE THE PUBLIC NOTICE ALSO.

OH, OKAY.

WE'LL BACKTRACK AND GO BACK TO ITEM NUMBER ONE.

SO ON THE TAX RATE.

OH. ON THE TAX RATE. YES.