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Test test Test test.

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And let's go ahead and say it is 6:30.

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We are going to go ahead and call this

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meeting to order. And first we'll begin

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with roll call. We can go ahead and take

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care of roll call.

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here.

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» Present.

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>> All right. Thank you, ma'am. Appreciate

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that. Okay. Let's go ahead and stand and

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let's go ahead and do our pledge of

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allegiance.

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>> Okay. Amen.

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» To the flag of the United States of

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America and to the republic for which it

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stands. One nation under God,

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indivisible, with liberty and justice

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for all.

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>> All right. Thank you so much. Appreciate

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that, council. All right. Let's go ahead

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and jump into item number three. And

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this is a presentation, discussion, and

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direction concerning the budget for

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fiscal year 2026 to 2027. And the areas

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that we're going to go ahead and cover

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are the water and wastewater utility

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rates, b the tax rate, and c other

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departmental budget uh changes or

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challenges. So, let's go ahead and uh

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start with A with water and wastewater

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utility rates.

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>> Yeah. So, um I'm going to just uh

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introduce you all. I know uh most of

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youall I think were here last time uh

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when uh New Jen was here. Uh but um been

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working over the last I guess couple

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months again with uh Matthew uh Garrett

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and his team at New Gen. uh we had a lot

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of changes uh you know and and I know he

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will go over that but since the last

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time uh last year when we um we made

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utility rate changes obviously as you

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all know uh we issued new debt uh in the

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utility uh which does have a factor in

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uh kind of the utility rates uh and so

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uh Ivonne and I spoke and we felt like

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it was really critical to really hone in

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on where our utility rates need to be. I

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know there's been a lot of conversations

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at the council level of what that needs

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to look like. Uh and and the idea was um

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let's get somebody in here that um

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really understands that world uh best

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practices and the like. Uh and so uh we

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brought Newgen back in uh and started uh

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to speak with him and his team. And so

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Matthew is here to kind of give you a a

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picture of of where we're at uh with

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those conversations and uh kind of how

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we potentially look at proceeding. I

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know he's got a couple different maybe

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options to kind of explore. So, I'll

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turn it over to Matthew to kind of walk

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through that conversation with y'all.

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So,

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>> and that should work. The big

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>> Yes, sir. Thank you very much. Howdy,

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mayor, members of council. Matthew

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Garrett, partner with New Gen Strategies

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and Solutions. Always good to be back in

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front of you. Um,

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so when Zach called us, right, we were

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going to do a quick update and the quick

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update turned into we've got a lot going

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on and then we have a master plan and we

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have a laundry list of projects and

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there's no way we could fund them all,

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but we have one big one and we'll talk

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about that in a minute. Um, so what does

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that look like to Lidal going forward?

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So the good news is you're looking at

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this beyond one year at a time and

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that's what we're going to do. Again,

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we're going to forecast that fiveyear

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horizon, kind of talk about the needs.

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Um, a couple things that we're going to

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talk about. You you do have a little bit

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of growth coming in. I think we max out

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at around 180 new connections in 27 and

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then we level off to 100 and then kind

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of wayne because we can't be sure of

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what's coming after.

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But like most right forecasts, we want

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to put the known and measurable inputs

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in and then the further out we get the

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less we want to bet on the come right.

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So I think that's a good conservative

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approach. Additionally, last year we had

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recommended that that small business

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rate which is equal to residential

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effectively be gone. Uh parts of it have

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remained and so we're again recommending

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that small commercial just be roped in

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and charged like all other commercial.

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Um primary reason is you've already

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addressed the meter size equivalency,

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right? So a larger meter can now pay

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more. And so within your commercial

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class, you already have segregation or

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differentiation and who pays based on

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potential volume, right? Additionally,

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you also have um volumetric rates which

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pick up the volume component. So again,

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no good reason in our mind for that

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small commercial customer to continue

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paying a lesser rate, especially in the

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face of major investments. Um yeah, so

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that and we are continuing a phase in of

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that meter equivalency. We'll talk about

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what that looks like. Important note,

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last time there was a communication

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problem and we did not include a debt

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service which is currently on the books

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of a half million dollars. Um, so that

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made things look a little better than

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they really are. So we've added that in.

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Additionally, you've since issued debt

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is 26 issuance 25. Yeah. And that's

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around 350, 370 uh peranom in principal

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and interest payments. Um, so we

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factored that in. You do have a

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wastewater treatment plant. subject to

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winning big tonight. Uh you will need to

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fund it and uh that is a rough roughly a

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million dollars per year payment even on

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a 30-year note. And among the many

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things that Zach and engineers will

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share around their master plan, we only

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funded that one in this horizon. So all

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that to say, it's not we aren't

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packaging up the wish list. We're

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putting in the need and the need is

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still a big jump at a $19 million clip,

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right? Across 2,000 connections, maybe

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2,300 2400 by the end of this. Uh that's

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a pretty good jump.

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That said, your your cost will grow from

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2.7 million to over 4 million. So that's

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the hill we have to climb. That's an

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average annual increase of cost alone of

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10 and a half%. Now, here are the costs

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that make that up. your O andM like a

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lot of operations and maintenance

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expenses your people other than

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well we don't have any major jumps right

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so you're not adding 10 staffers and so

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your on andm your operations line is a

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pretty steady growth uh in accordance

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with inflation

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your capital outlays are anticipated in

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that yellow line or yellow yellow middle

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bar excuse me so you do have some cash

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capital each year uh and lastly that

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projected debt service. Um,

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so the yellow line is very faint, but

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you have your existing layer of debt

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service. Again, that's around 900,000.

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You add again another million once that

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wastewater treatment plant debt comes

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on. And that'll first affect you in 29

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if you issue in 28. Okay.

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So again, currently uh the residential

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and small commercial rates are identical

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uh except for the asterric which is that

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your residents pay a volumetric winter

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quarter average. Um additionally another

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footnote, you do have multi-unit billing

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and so that will affect each unit build

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like a single family equivalent uh at

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the 5/8 inch base rate. Pretty common

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approach. Uh that said, your minimum

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charges are between $20 and $83. Uh

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there aren't many residents with a

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4-inch meter, probably zero, actually.

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Uh we may have a couple larger inch and

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a half meters out there. Um I'm sure

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they may have approached Zach and talked

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about what to do if they want to get a

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smaller one. U but this mostly is

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affecting your small commercial today.

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Um you do have an inclining block rate

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as discussed before. That is a good uh

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opportunity to send a price signal. If

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you do not have some conservation price

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signal, you would very likely have to

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build additional capacity, more storage,

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more elevated storage to pressurize your

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system just for July through September,

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right? Just for the big piece when it's

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104 outside and people are watering. Um,

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so to that end, this is a good approach.

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One thing before we leave this slide,

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I'll recommend in the future, we are in

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the industry and in Texas kind of going

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away from included volumes. your minimum

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charge is already pretty low and then

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you are effectively including 3,000

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gallons in the minimum. There are other

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ways to to handle different customer

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types. Um we haven't suggested that

211
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change today, but again as we have a

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pretty steep hill to climb, you have

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other rate strategies you can employ in

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the future and this is one that probably

215
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warrants a review

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with that. Uh same is true on um sewer,

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$22. Uh and then you have an inclining

218
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block rate right there.

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Commercial rate structure. Again, just

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want to point out we do have uh the

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meter equivalency starting in. So that

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was at about 20% of the industry

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standard. We did that because we didn't

224
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want to expression rip the band-aid.

225
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didn't want to have a major rate shock

226
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to our commercial customers, but we do

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anticipate phasing them in to the full

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additional cost of having a large meter.

229
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Again, that principle is that a large

230
00:22:19,280 --> 00:22:21,039
meter puts additional demand on your

231
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system and as a result, its minimum is

232
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higher to represent your fixed cost

233
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which are higher for those larger

234
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meters.

235
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So, my doomsday chart and I apologize

236
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for it. It is the burning platform. It

237
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just says we can't stay here. If you do

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nothing with rates and you need to spend

239
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what we have according to plan, it

240
00:22:39,760 --> 00:22:41,919
doesn't work right. So, as the dashboard

241
00:22:41,919 --> 00:22:43,760
goes, your expenses are in that gold or

242
00:22:43,760 --> 00:22:46,320
orange bar, revenues, uh, they're at

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around 2 million. Don't keep up. Um,

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because your growth's not enough to to

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pull it over, uh, the additional burden.

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Your debt service coverage, the bond

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community will not like it if you're not

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making your notes. Uh, and so you miss

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on that mark. And then we literally go

250
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negative. And so uh I share it only to

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show you the impetus. We we do have to

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do something about rates. Um as proposed

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again

254
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to say one more time, we are planning to

255
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increase the commercial rate phasing in

256
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up to that 40% of meter equivalency.

257
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Again, meter equivalency is sort of an

258
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industry standard. uh there are basic

259
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metrics that say this meter is two

260
00:23:28,799 --> 00:23:31,520
times, four times, eight times the

261
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capacity. Uh and that's why these rates

262
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are now moving up. You'll see that 1 in,

263
00:23:36,240 --> 00:23:38,559
2 in, and 4 in have a little bit bigger

264
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steps than they did before because we're

265
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implementing a 40% equivalency factor.

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Meanwhile, the rate goes up from 20 to

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27. Uh on the residential base bill,

268
00:23:48,480 --> 00:23:50,720
we've left the 3,000 gallons included

269
00:23:50,720 --> 00:23:52,799
for the time being, trying not to do too

270
00:23:52,799 --> 00:23:55,840
much at once. Um it's a lot to explain

271
00:23:55,840 --> 00:23:58,480
uh if we do too much at once. Uh again,

272
00:23:58,480 --> 00:24:00,799
the sewer rate was 22 before. We're

273
00:24:00,799 --> 00:24:03,120
recommending 2970

274
00:24:03,120 --> 00:24:05,919
going into 2027. And you'll see the

275
00:24:05,919 --> 00:24:08,799
other rates have some increases along

276
00:24:08,799 --> 00:24:11,120
the way. No change to the winter average

277
00:24:11,120 --> 00:24:12,720
policy,

278
00:24:12,720 --> 00:24:14,880
but we have assumed that this new

279
00:24:14,880 --> 00:24:16,960
residential chart does not apply to a

280
00:24:16,960 --> 00:24:19,279
small commercial customer. Right? So

281
00:24:19,279 --> 00:24:21,200
we've taken them off this slide. small

282
00:24:21,200 --> 00:24:22,880
commercial now is going to live with

283
00:24:22,880 --> 00:24:25,120
other commercial pay their if they're

284
00:24:25,120 --> 00:24:27,440
small lower minimum charge and pay

285
00:24:27,440 --> 00:24:29,039
volumes just like a commercial customer

286
00:24:29,039 --> 00:24:32,799
would. Um so again the rate

287
00:24:32,799 --> 00:24:37,200
differentials here um we have increased

288
00:24:37,200 --> 00:24:41,120
right the equivalency up to 40%. Uh that

289
00:24:41,120 --> 00:24:44,320
puts that commercial rate at 38.48

290
00:24:44,320 --> 00:24:46,080
uh and you see the associated changes

291
00:24:46,080 --> 00:24:48,080
kind of rowby row. I don't want to read

292
00:24:48,080 --> 00:24:50,240
the detail to you. Any questions though

293
00:24:50,240 --> 00:24:55,279
on the the residential changes to rates?

294
00:24:55,279 --> 00:24:57,520
Any of my

295
00:24:57,520 --> 00:24:58,960
opinions on a design?

296
00:24:58,960 --> 00:25:00,240
>> Go back to the commercial.

297
00:25:00,240 --> 00:25:01,840
>> Yes sir.

298
00:25:01,840 --> 00:25:05,600
>> So Pete, how many just on top of your

299
00:25:05,600 --> 00:25:08,799
head, how many of our small businesses,

300
00:25:08,799 --> 00:25:11,200
you know, start falling into the 2 in

301
00:25:11,200 --> 00:25:13,279
and above?

302
00:25:13,279 --> 00:25:17,830
When you look at the small businesses,

303
00:25:17,840 --> 00:25:20,880
» we have kind of like I have an idea.

304
00:25:20,880 --> 00:25:22,720
>> I don't I don't know. I do have the

305
00:25:22,720 --> 00:25:24,720
data. Didn't we move all the 2 inch and

306
00:25:24,720 --> 00:25:26,320
above to normal commercial or do we have

307
00:25:26,320 --> 00:25:29,279
a few left in small?

308
00:25:29,279 --> 00:25:31,279
>> I think most of them.

309
00:25:31,279 --> 00:25:36,159
>> Okay. So, so we're looking at the

310
00:25:36,159 --> 00:25:39,760
>> but that was there's still some like

311
00:25:39,760 --> 00:25:44,630
have a situation where

312
00:25:44,640 --> 00:25:46,240
Ivon and I were looking the other day.

313
00:25:46,240 --> 00:25:48,720
We we pulled like the top 10 users,

314
00:25:48,720 --> 00:25:50,720
commercial users, right? I'm just going

315
00:25:50,720 --> 00:25:52,559
to point an example, not to like point

316
00:25:52,559 --> 00:25:56,159
any of our users out, but like AutoZone

317
00:25:56,159 --> 00:25:58,720
for instance, is listed in our system as

318
00:25:58,720 --> 00:26:01,600
a small business commercial. That's just

319
00:26:01,600 --> 00:26:04,159
because originally it was based on meter

320
00:26:04,159 --> 00:26:06,480
size, but a national brand probably

321
00:26:06,480 --> 00:26:08,880
doesn't make sense to be listed as a

322
00:26:08,880 --> 00:26:11,600
small business commercial. So I think

323
00:26:11,600 --> 00:26:14,320
with the idea behind us moving to that

324
00:26:14,320 --> 00:26:16,960
meter equivalency is why we felt like

325
00:26:16,960 --> 00:26:19,520
it's probably doesn't make sense anymore

326
00:26:19,520 --> 00:26:21,679
to

327
00:26:21,679 --> 00:26:23,600
keep the two distinguishing small

328
00:26:23,600 --> 00:26:25,600
business and commercial and just have

329
00:26:25,600 --> 00:26:27,600
them just switch to commercial because

330
00:26:27,600 --> 00:26:29,120
they're already going to be paying less

331
00:26:29,120 --> 00:26:32,480
based on their need. So

332
00:26:32,480 --> 00:26:34,720
that's why we have that. That's just one

333
00:26:34,720 --> 00:26:36,159
example. I think I think that's where

334
00:26:36,159 --> 00:26:38,320
the shop might be or you might get a

335
00:26:38,320 --> 00:26:40,880
little bit but those businesses totally

336
00:26:40,880 --> 00:26:42,880
agree with you in a sense but I'm just

337
00:26:42,880 --> 00:26:45,279
looking at say just even the one inch

338
00:26:45,279 --> 00:26:47,200
right now with a small business if they

339
00:26:47,200 --> 00:26:49,440
they're paying you know local business

340
00:26:49,440 --> 00:26:52,000
it's like 2267 and we're going to jump

341
00:26:52,000 --> 00:26:54,559
all the way to 4874

342
00:26:54,559 --> 00:26:56,159
until

343
00:26:56,159 --> 00:26:58,000
you know small business that goes along

344
00:26:58,000 --> 00:26:59,679
with that

345
00:26:59,679 --> 00:27:01,760
>> and we do have I know we have the data

346
00:27:01,760 --> 00:27:03,679
on who's listed there

347
00:27:03,679 --> 00:27:05,520
>> yeah I mean I have my laptop. I assume

348
00:27:05,520 --> 00:27:06,720
you didn't want me to pull it out and go

349
00:27:06,720 --> 00:27:08,559
deep, but I can if we actually want to

350
00:27:08,559 --> 00:27:10,080
talk about detail.

351
00:27:10,080 --> 00:27:11,520
>> I was just wondering how many fell in

352
00:27:11,520 --> 00:27:12,480
there. Oh, yes,

353
00:27:12,480 --> 00:27:15,120
>> that was basically it. We had enough.

354
00:27:15,120 --> 00:27:18,159
>> Yeah. The good news is we are not only

355
00:27:18,159 --> 00:27:20,640
increasing the minimum equivalency. So,

356
00:27:20,640 --> 00:27:23,840
the bigger ones are going to feel share

357
00:27:23,840 --> 00:27:25,919
in in the pain and the burden. but also

358
00:27:25,919 --> 00:27:27,440
to that same commercial customer

359
00:27:27,440 --> 00:27:29,679
politely as a council, you can say, "Our

360
00:27:29,679 --> 00:27:32,159
residents are going up $7 on the minimum

361
00:27:32,159 --> 00:27:34,559
and you're going up 12 or or whatever

362
00:27:34,559 --> 00:27:36,559
that delta was. I forgot the reference,

363
00:27:36,559 --> 00:27:41,279
but um yeah, there there is a a shared

364
00:27:41,279 --> 00:27:42,640
uh it's not like we're just doing this

365
00:27:42,640 --> 00:27:45,360
to commercial. We're not we're not

366
00:27:45,360 --> 00:27:47,840
paying the bills off of rates only that

367
00:27:47,840 --> 00:27:50,000
they're affected by. So, but we can

368
00:27:50,000 --> 00:27:51,919
provide that data. We can follow up uh

369
00:27:51,919 --> 00:27:53,360
as well to council if that would help in

370
00:27:53,360 --> 00:27:54,720
decision making. I'm sorry I didn't have

371
00:27:54,720 --> 00:27:56,159
it with me.

372
00:27:56,159 --> 00:27:58,480
>> A few a few of the residents. Yeah.

373
00:27:58,480 --> 00:28:01,120
Especially, you know, those that are

374
00:28:01,120 --> 00:28:03,600
very very limited, but I know the big

375
00:28:03,600 --> 00:28:05,919
jump is going to be for those small

376
00:28:05,919 --> 00:28:08,559
business just we did have a few

377
00:28:08,559 --> 00:28:11,039
residents after we

378
00:28:11,039 --> 00:28:15,200
see this last year that were on higher

379
00:28:15,200 --> 00:28:18,080
meters that have come in and said, "I

380
00:28:18,080 --> 00:28:20,399
want to go down to a lower meter." So,

381
00:28:20,399 --> 00:28:21,840
we did have a few of those that went

382
00:28:21,840 --> 00:28:24,000
down to a lower meter. They probably

383
00:28:24,000 --> 00:28:26,640
didn't realize they were on a higher

384
00:28:26,640 --> 00:28:28,159
obviously

385
00:28:28,159 --> 00:28:31,520
be on a higher side. So

386
00:28:31,520 --> 00:28:33,600
>> yeah. So we have had some changes and

387
00:28:33,600 --> 00:28:35,360
fluctuations

388
00:28:35,360 --> 00:28:39,430
not.

389
00:28:39,440 --> 00:28:40,159
» Thank you.

390
00:28:40,159 --> 00:28:43,750
>> Oh yes sir.

391
00:28:43,760 --> 00:28:45,440
» All right. So with the proposed rates

392
00:28:45,440 --> 00:28:48,640
sort of in hand um we go back to the

393
00:28:48,640 --> 00:28:50,399
dashboard. Right. We've tinkered. We've

394
00:28:50,399 --> 00:28:54,159
retoled. And now we can make uh the

395
00:28:54,159 --> 00:28:56,799
bills, right? We were able to pay for

396
00:28:56,799 --> 00:28:59,440
our increasing expenses over time. We're

397
00:28:59,440 --> 00:29:01,600
able to hit a debt service coverage rate

398
00:29:01,600 --> 00:29:04,080
of better than one. Uh right now, I

399
00:29:04,080 --> 00:29:05,440
don't believe we have a bond covenant

400
00:29:05,440 --> 00:29:08,159
that requires that red line there, that

401
00:29:08,159 --> 00:29:11,120
1.1. Um that's a target, not a mandate

402
00:29:11,120 --> 00:29:12,480
at the moment.

403
00:29:12,480 --> 00:29:14,720
um should your financial advisor or the

404
00:29:14,720 --> 00:29:17,840
next debt issuance have a hard and fast

405
00:29:17,840 --> 00:29:21,200
line then we we can't accept less than

406
00:29:21,200 --> 00:29:23,520
right so if 1.1 becomes the new floor

407
00:29:23,520 --> 00:29:26,080
we'll have to do a little more in 29 if

408
00:29:26,080 --> 00:29:28,640
all my other assumptions hold but I'm

409
00:29:28,640 --> 00:29:30,240
not assuming that at the moment uh

410
00:29:30,240 --> 00:29:32,000
especially if you're doing taxbacked

411
00:29:32,000 --> 00:29:34,640
debt uh oftentimes it doesn't carry that

412
00:29:34,640 --> 00:29:36,240
additional pledge because you have the

413
00:29:36,240 --> 00:29:37,760
full faith and credit of your taxing

414
00:29:37,760 --> 00:29:40,320
ability should you ever need to right

415
00:29:40,320 --> 00:29:43,279
and so um on a CO or certificate of

416
00:29:43,279 --> 00:29:45,279
obligation, it's very common that you

417
00:29:45,279 --> 00:29:46,720
would not have to have an additional

418
00:29:46,720 --> 00:29:49,360
revenue pledge above and beyond paying

419
00:29:49,360 --> 00:29:51,840
for operations and paying for the debt,

420
00:29:51,840 --> 00:29:53,840
right? Because you've got this backing

421
00:29:53,840 --> 00:29:56,080
of your tax ability, not that you plan

422
00:29:56,080 --> 00:29:59,360
to use taxes. Additionally, right now,

423
00:29:59,360 --> 00:30:00,960
uh, because we're on plan and because

424
00:30:00,960 --> 00:30:02,720
we're hitting debt service coverage and

425
00:30:02,720 --> 00:30:05,279
we're phasing in meters, you do see that

426
00:30:05,279 --> 00:30:08,320
in years three, four, and five, we start

427
00:30:08,320 --> 00:30:10,559
to actually build a little bit of a cash

428
00:30:10,559 --> 00:30:12,320
balance, right? We're not really

429
00:30:12,320 --> 00:30:14,320
trucking along. Our target there is 90

430
00:30:14,320 --> 00:30:16,960
days. So, it's not like

431
00:30:16,960 --> 00:30:18,320
we're not living paycheck to paycheck

432
00:30:18,320 --> 00:30:20,000
anymore, but we're also not playing bank

433
00:30:20,000 --> 00:30:22,960
and have two years of cash in the bank.

434
00:30:22,960 --> 00:30:25,679
That said, it's my full expectation by

435
00:30:25,679 --> 00:30:27,520
probably the end of next year and

436
00:30:27,520 --> 00:30:30,480
certainly by the end of 2030, uh, you,

437
00:30:30,480 --> 00:30:32,399
the engineers in your system, will

438
00:30:32,399 --> 00:30:34,399
probably have another need. Remember,

439
00:30:34,399 --> 00:30:35,919
I've only put in one big capital

440
00:30:35,919 --> 00:30:38,559
project. And the list is pretty

441
00:30:38,559 --> 00:30:40,640
substantial, 30 to 40 projects. They

442
00:30:40,640 --> 00:30:42,880
aren't all required today, but in the

443
00:30:42,880 --> 00:30:44,240
next three years, something else I

444
00:30:44,240 --> 00:30:46,640
assume will be identified. And so what I

445
00:30:46,640 --> 00:30:48,320
didn't do is I didn't lowball the

446
00:30:48,320 --> 00:30:50,960
outyear rate impacts because there's a

447
00:30:50,960 --> 00:30:52,799
good chance something's going to fill

448
00:30:52,799 --> 00:30:55,200
the additional surplus that that has. So

449
00:30:55,200 --> 00:30:57,279
again, you're not making decisions I

450
00:30:57,279 --> 00:30:58,960
think this year for 5 years later,

451
00:30:58,960 --> 00:31:01,600
probably just thinking 27 uh in this

452
00:31:01,600 --> 00:31:03,440
current budget. And so with a bit of a

453
00:31:03,440 --> 00:31:06,240
focus there, um but the plan as shown

454
00:31:06,240 --> 00:31:08,720
does work. We do continue to phase in uh

455
00:31:08,720 --> 00:31:10,799
the meter equivalency until we get to

456
00:31:10,799 --> 00:31:13,360
100% in this plan.

457
00:31:13,360 --> 00:31:16,960
Um, so that's another uh next year if if

458
00:31:16,960 --> 00:31:19,360
it's me or Zach or team, that's the next

459
00:31:19,360 --> 00:31:21,440
step that's already on plan here is to

460
00:31:21,440 --> 00:31:22,799
continue phasing in our meter

461
00:31:22,799 --> 00:31:28,310
equivalency.

462
00:31:28,320 --> 00:31:29,600
With that, what does that mean to our

463
00:31:29,600 --> 00:31:31,679
resident, right? And and I can't talk

464
00:31:31,679 --> 00:31:33,360
about rate increases without thinking

465
00:31:33,360 --> 00:31:35,360
about your resident. Um, we feel for

466
00:31:35,360 --> 00:31:37,279
them. We know it hits hard, but your

467
00:31:37,279 --> 00:31:40,080
budget is taking a pretty big hit as

468
00:31:40,080 --> 00:31:42,960
well. Uh currently that typical bill at

469
00:31:42,960 --> 00:31:47,600
55 5500 gallons is paying 5130 and we'll

470
00:31:47,600 --> 00:31:48,880
show you here in a bit that that's

471
00:31:48,880 --> 00:31:50,559
pretty low compared to the market

472
00:31:50,559 --> 00:31:55,200
already. Um and moving up to 69.26 is an

473
00:31:55,200 --> 00:31:57,360
increase of 1796,

474
00:31:57,360 --> 00:31:59,440
right? So roughly it's not technically

475
00:31:59,440 --> 00:32:02,559
$8 per service. Um so it's about 10 more

476
00:32:02,559 --> 00:32:04,559
on wastewater

477
00:32:04,559 --> 00:32:08,080
um and a little shy of that on water.

478
00:32:08,080 --> 00:32:10,080
But all in, it's a total bill impact of

479
00:32:10,080 --> 00:32:11,919
$18. And that's what most residents

480
00:32:11,919 --> 00:32:14,559
think about. What's my total change

481
00:32:14,559 --> 00:32:17,440
monthtomonth? The increases do level off

482
00:32:17,440 --> 00:32:19,440
a bit in the outy years. You see, we did

483
00:32:19,440 --> 00:32:22,480
bring those increases down. $11 yet

484
00:32:22,480 --> 00:32:26,960
again in 28, 1285, and 29. That is

485
00:32:26,960 --> 00:32:28,559
consistent with the year we have to make

486
00:32:28,559 --> 00:32:31,120
that first million dollar debt payment.

487
00:32:31,120 --> 00:32:32,559
uh and then we're able to taper off

488
00:32:32,559 --> 00:32:34,720
because we will have kept up with the

489
00:32:34,720 --> 00:32:38,159
debt but the rates we needed in place uh

490
00:32:38,159 --> 00:32:39,840
even with these smaller amounts you saw

491
00:32:39,840 --> 00:32:41,919
we we were able to build a little cash

492
00:32:41,919 --> 00:32:43,600
right

493
00:32:43,600 --> 00:32:45,760
so that's the residential rate impact

494
00:32:45,760 --> 00:32:48,240
commercial bill impact uh this is a

495
00:32:48,240 --> 00:32:51,519
substantial water user a 2-in meter and

496
00:32:51,519 --> 00:32:54,159
75,000 gallons per month right so this

497
00:32:54,159 --> 00:32:57,039
isn't small commercial um that said

498
00:32:57,039 --> 00:33:00,000
currently they're paying about $926

499
00:33:00,000 --> 00:33:04,480
that goes up 357 about a 38% jump.

500
00:33:04,480 --> 00:33:06,799
Uh and we have some comparison slides on

501
00:33:06,799 --> 00:33:09,679
residential to go over. But

502
00:33:09,679 --> 00:33:13,519
>> if if we build wastewater based on water

503
00:33:13,519 --> 00:33:15,840
consumption, why isn't the increase

504
00:33:15,840 --> 00:33:18,559
proportional?

505
00:33:18,559 --> 00:33:21,120
>> And I'm sorry, if we build wastewater

506
00:33:21,120 --> 00:33:21,519
I'm sorry,

507
00:33:21,519 --> 00:33:26,000
>> based on water consumption, why is the increases why are they not

508
00:33:26,000 --> 00:33:28,080
proportional as you go up? Well, we

509
00:33:28,080 --> 00:33:29,760
actually put a little bit more on

510
00:33:29,760 --> 00:33:32,320
wastewater and in your rate design.

511
00:33:32,320 --> 00:33:34,080
>> When you look at the commercial, the

512
00:33:34,080 --> 00:33:36,080
wastewater, the green bar does not

513
00:33:36,080 --> 00:33:38,320
increase in the same proportion as the

514
00:33:38,320 --> 00:33:39,519
blue.

515
00:33:39,519 --> 00:33:40,720
>> Right. So, a couple things are

516
00:33:40,720 --> 00:33:42,080
different, right? We have different rate

517
00:33:42,080 --> 00:33:44,159
design. For starters, we're starting to

518
00:33:44,159 --> 00:33:46,720
charge in commercial for the first 3,000

519
00:33:46,720 --> 00:33:48,640
gallons. So, that's off the top. And

520
00:33:48,640 --> 00:33:51,039
then the unit rates vary. The next

521
00:33:51,039 --> 00:33:53,600
>> My understanding is the wastewater

522
00:33:53,600 --> 00:33:55,039
charge is based on the water

523
00:33:55,039 --> 00:33:56,399
consumption.

524
00:33:56,399 --> 00:33:57,600
>> It is. It is.

525
00:33:57,600 --> 00:33:59,440
>> So then why would it not be equal all

526
00:33:59,440 --> 00:34:00,960
the way across?

527
00:34:00,960 --> 00:34:02,559
>> Oh, and I think this is it, right? So

528
00:34:02,559 --> 00:34:05,200
you're taking Yes, sir. One key part of

529
00:34:05,200 --> 00:34:07,679
the formula is the consumption. But then

530
00:34:07,679 --> 00:34:09,200
that consumption goes through these

531
00:34:09,200 --> 00:34:11,839
scales which differ dramatically, right?

532
00:34:11,839 --> 00:34:13,440
No charge for the first three on the

533
00:34:13,440 --> 00:34:16,639
left, 81 cents on the right, 243 on the

534
00:34:16,639 --> 00:34:17,919
left for the next seven.

535
00:34:17,919 --> 00:34:19,679
>> So the waste water does not follow that

536
00:34:19,679 --> 00:34:20,720
same schedule.

537
00:34:20,720 --> 00:34:24,000
>> So in water, we're giving the first

538
00:34:24,000 --> 00:34:28,470
at the base rate. sewer.

539
00:34:28,480 --> 00:34:30,399
So,

540
00:34:30,399 --> 00:34:32,480
>> so the green bar should be larger than

541
00:34:32,480 --> 00:34:38,629
the blue bar

542
00:34:38,639 --> 00:34:41,520
because those are proportions

543
00:34:41,520 --> 00:34:43,520
at on the initial that's that's

544
00:34:43,520 --> 00:34:45,280
residential. You go to commercial.

545
00:34:45,280 --> 00:34:46,159
>> Yes, sir.

546
00:34:46,159 --> 00:34:48,480
>> So, if you look at the uh the green bar,

547
00:34:48,480 --> 00:34:51,440
it's less than the blue bar. yet we're

548
00:34:51,440 --> 00:34:55,119
given a 3,000galon credit for the blue.

549
00:34:55,119 --> 00:34:58,320
Why would the green not be larger?

550
00:34:58,320 --> 00:35:01,040
>> So it doesn't read this chart wrong.

551
00:35:01,040 --> 00:35:02,480
That's that's what I see.

552
00:35:02,480 --> 00:35:04,079
>> You are not, sir. But but if I were to

553
00:35:04,079 --> 00:35:06,160
put the two rates and and I

554
00:35:06,160 --> 00:35:07,599
unfortunately they're not parallel,

555
00:35:07,599 --> 00:35:09,359
right? I can't they don't line up well.

556
00:35:09,359 --> 00:35:10,960
But if you were to cross reference 0 to

557
00:35:10,960 --> 00:35:13,040
three on the left at nothing to 81

558
00:35:13,040 --> 00:35:13,599
cents.

559
00:35:13,599 --> 00:35:15,280
>> However, we do charge for sewage.

560
00:35:15,280 --> 00:35:16,400
>> You do per waste water.

561
00:35:16,400 --> 00:35:19,040
>> You do. And then 243 for the next seven,

562
00:35:19,040 --> 00:35:21,359
but then less for the next seven in

563
00:35:21,359 --> 00:35:24,400
wastewater. 8.91 for the next 15 and

564
00:35:24,400 --> 00:35:25,200
only 486.

565
00:35:25,200 --> 00:35:27,599
>> We do the same thing for residential.

566
00:35:27,599 --> 00:35:30,160
>> Yeah.

567
00:35:30,160 --> 00:35:32,160
>> The the the higher the water, the less

568
00:35:32,160 --> 00:35:33,599
the the waste water.

569
00:35:33,599 --> 00:35:35,760
>> Yeah.

570
00:35:35,760 --> 00:35:37,599
>> I mean, if we're doing that the same the

571
00:35:37,599 --> 00:35:40,160
same for residential

572
00:35:40,160 --> 00:35:41,920
>> that we're doing for commercial.

573
00:35:41,920 --> 00:35:44,800
>> Yeah. Well, residential and commercial

574
00:35:44,800 --> 00:35:48,870
are the same type,

575
00:35:48,880 --> 00:35:50,079
» right? But we're talking about

576
00:35:50,079 --> 00:35:52,720
discounts. You're saying that once they

577
00:35:52,720 --> 00:35:55,599
get to a certain point, it's less.

578
00:35:55,599 --> 00:35:56,560
That's what you just said.

579
00:35:56,560 --> 00:35:58,400
>> No. So, it's an inclining block rate.

580
00:35:58,400 --> 00:36:01,280
Um, and so, so again, on screen, the

581
00:36:01,280 --> 00:36:03,599
volumetric rates only go up. The more

582
00:36:03,599 --> 00:36:06,400
you use, the more you pay per unit.

583
00:36:06,400 --> 00:36:08,000
However,

584
00:36:08,000 --> 00:36:10,160
the current rate schedule and the

585
00:36:10,160 --> 00:36:12,000
proposed rate schedule, for instance, at

586
00:36:12,000 --> 00:36:16,960
the 50 to75 on water, you're paying 1134

587
00:36:16,960 --> 00:36:20,000
per unit. But in wastewater, that same

588
00:36:20,000 --> 00:36:23,359
amount is only 810 per unit,

589
00:36:23,359 --> 00:36:25,280
right? That's something that could be

590
00:36:25,280 --> 00:36:29,200
changed. But the one reason that could

591
00:36:29,200 --> 00:36:31,440
be the case is that the principle around

592
00:36:31,440 --> 00:36:34,079
peaking, right? The fixed infrastructure

593
00:36:34,079 --> 00:36:36,480
you have to build for high volumes of

594
00:36:36,480 --> 00:36:39,280
water is different than it is for

595
00:36:39,280 --> 00:36:41,680
wastewater. Wastewater really is general

596
00:36:41,680 --> 00:36:43,359
flow. Other than high strength

597
00:36:43,359 --> 00:36:44,880
customers, if you had any industrial

598
00:36:44,880 --> 00:36:46,720
customers with, you know, really bad

599
00:36:46,720 --> 00:36:49,520
waste water, it's actually a function of

600
00:36:49,520 --> 00:36:52,560
most flows are similar. But on the water

601
00:36:52,560 --> 00:36:54,960
side, as people get into those higher

602
00:36:54,960 --> 00:36:58,160
uses for any given day, you hit a peak

603
00:36:58,160 --> 00:37:01,040
day. And at some point, TCEQ says, "You

604
00:37:01,040 --> 00:37:04,480
have too much peak in your system.

605
00:37:04,480 --> 00:37:05,760
You're not supplying enough. You could

606
00:37:05,760 --> 00:37:07,119
even have pressure issues. I know the

607
00:37:07,119 --> 00:37:08,240
group back here could tell you better

608
00:37:08,240 --> 00:37:09,839
than I could because I've never been an

609
00:37:09,839 --> 00:37:11,839
operator." But at some point, you have

610
00:37:11,839 --> 00:37:14,160
to build additional capacity to meet

611
00:37:14,160 --> 00:37:15,280
that peak.

612
00:37:15,280 --> 00:37:16,640
>> So, pull up the commercial.

613
00:37:16,640 --> 00:37:19,520
>> Yes, sir.

614
00:37:19,520 --> 00:37:21,599
So this is doing the same thing.

615
00:37:21,599 --> 00:37:23,440
>> Yes sir. You are paying more for every

616
00:37:23,440 --> 00:37:26,880
unit of consumption but the rate for

617
00:37:26,880 --> 00:37:30,000
each K gallon or thousand of gallons is

618
00:37:30,000 --> 00:37:31,760
different between sewer and water. We

619
00:37:31,760 --> 00:37:35,119
could put those lock step but the the

620
00:37:35,119 --> 00:37:37,520
reasoning around that peak pricing for

621
00:37:37,520 --> 00:37:42,400
water is because it has a clearer

622
00:37:42,400 --> 00:37:44,160
relationship to the system demand.

623
00:37:44,160 --> 00:37:45,359
>> What comes in goes out.

624
00:37:45,359 --> 00:37:46,000
>> What's that?

625
00:37:46,000 --> 00:37:47,280
>> What comes in goes out.

626
00:37:47,280 --> 00:37:48,160
>> Yeah. Well, there's that

627
00:37:48,160 --> 00:37:48,800
>> theoretically.

628
00:37:48,800 --> 00:37:49,839
>> Yes, sir.

629
00:37:49,839 --> 00:37:52,800
>> Uh, okay. I mean, I'm just saying as

630
00:37:52,800 --> 00:37:54,720
long as they are the same, right? But

631
00:37:54,720 --> 00:37:56,480
when you look now, go to your your

632
00:37:56,480 --> 00:37:56,960
graph.

633
00:37:56,960 --> 00:37:57,920
>> Oh, yes, sir.

634
00:37:57,920 --> 00:37:59,440
>> Your bar chart. There you go.

635
00:37:59,440 --> 00:37:59,920
>> Commercial.

636
00:37:59,920 --> 00:38:01,520
>> If you start off with the commercial,

637
00:38:01,520 --> 00:38:02,880
the residential.

638
00:38:02,880 --> 00:38:03,839
>> Yes, sir.

639
00:38:03,839 --> 00:38:06,880
>> You see how the green is increasing more

640
00:38:06,880 --> 00:38:09,920
than the blue. Right now, you go to

641
00:38:09,920 --> 00:38:12,160
commercial. Look at that. It's not

642
00:38:12,160 --> 00:38:14,960
changing. Wastewater is not changing in

643
00:38:14,960 --> 00:38:17,599
comparison to the blue. It's also

644
00:38:17,599 --> 00:38:19,359
>> it's not it's not the same proportion.

645
00:38:19,359 --> 00:38:21,040
>> True. But if I were to scale this down,

646
00:38:21,040 --> 00:38:23,280
>> well, I'm just saying this does not look

647
00:38:23,280 --> 00:38:24,800
fair. That that's what I'm getting at.

648
00:38:24,800 --> 00:38:26,160
>> Okay. You just think wastewater should

649
00:38:26,160 --> 00:38:26,880
pay more.

650
00:38:26,880 --> 00:38:28,480
>> No, I'm just saying we should be paying

651
00:38:28,480 --> 00:38:29,680
the same thing because if you look at

652
00:38:29,680 --> 00:38:30,960
this graph here,

653
00:38:30,960 --> 00:38:32,960
>> look at residential versus

654
00:38:32,960 --> 00:38:33,760
>> the visual.

655
00:38:33,760 --> 00:38:35,440
>> Yeah. From a visual standpoint, it looks

656
00:38:35,440 --> 00:38:37,440
like res

657
00:38:37,440 --> 00:38:40,640
>> on on the on the wastewater.

658
00:38:40,640 --> 00:38:42,480
>> Okay. So, it's it's just how I'm going

659
00:38:42,480 --> 00:38:44,640
to take the money from your wallet. Am I

660
00:38:44,640 --> 00:38:45,760
going to take it, you know, directly

661
00:38:45,760 --> 00:38:47,520
from the front pocket or am I reach

662
00:38:47,520 --> 00:38:50,079
around for the for the wallet? And and

663
00:38:50,079 --> 00:38:53,119
when you look at the at the drawing, you

664
00:38:53,119 --> 00:38:54,960
know, the the wastewater is what I'm

665
00:38:54,960 --> 00:38:56,000
getting at.

666
00:38:56,000 --> 00:38:59,440
>> It's not in the same ratio as when you

667
00:38:59,440 --> 00:39:00,880
look at the commercial.

668
00:39:00,880 --> 00:39:04,640
>> You also have four res,

669
00:39:04,640 --> 00:39:06,400
>> but either way, it's still it's still

670
00:39:06,400 --> 00:39:08,800
who's paying the burden. It should be

671
00:39:08,800 --> 00:39:09,440
equal,

672
00:39:09,440 --> 00:39:10,320
>> right? If I were to

673
00:39:10,320 --> 00:39:12,240
>> If not, commercial should be actually it

674
00:39:12,240 --> 00:39:13,920
should be the opposite. commercials to

675
00:39:13,920 --> 00:39:16,320
be paid more than

676
00:39:16,320 --> 00:39:17,839
>> I mean we could come up with different

677
00:39:17,839 --> 00:39:19,440
commercial rates that

678
00:39:19,440 --> 00:39:20,720
>> I'm just trying right now I'm just

679
00:39:20,720 --> 00:39:22,320
trying to be fair based on what's being

680
00:39:22,320 --> 00:39:24,480
presented and I don't see that as being

681
00:39:24,480 --> 00:39:27,440
fair across the commercial versus the

682
00:39:27,440 --> 00:39:28,880
residential right

683
00:39:28,880 --> 00:39:31,359
>> taking into say could it also be that

684
00:39:31,359 --> 00:39:32,800
there are more residential than there

685
00:39:32,800 --> 00:39:33,839
are commercial

686
00:39:33,839 --> 00:39:34,480
>> absolutely

687
00:39:34,480 --> 00:39:36,480
>> that's why there there's higher green

688
00:39:36,480 --> 00:39:39,040
>> no that would the portions are still the

689
00:39:39,040 --> 00:39:39,920
same

690
00:39:39,920 --> 00:39:41,839
>> the ratio will not change based on the

691
00:39:41,839 --> 00:39:43,359
number of customers it's still the same.

692
00:39:43,359 --> 00:39:44,640
>> Yeah. The big difference is we're

693
00:39:44,640 --> 00:39:47,440
showing you a 75,000galon wastewater

694
00:39:47,440 --> 00:39:49,680
customer and then we're comparing it to

695
00:39:49,680 --> 00:39:52,000
a resident who's only got 5500 gallons

696
00:39:52,000 --> 00:39:54,800
of consumption. So if I wanted to show

697
00:39:54,800 --> 00:39:56,960
you more like for like on the green

698
00:39:56,960 --> 00:39:59,280
versus blue, then I could go to maybe

699
00:39:59,280 --> 00:40:00,960
it's AutoZone, maybe their usage is

700
00:40:00,960 --> 00:40:03,040
5,500, right? Couple flushes and some

701
00:40:03,040 --> 00:40:05,760
cleanup. Um but if you had a commercial

702
00:40:05,760 --> 00:40:08,720
user with a 5/8 inch meter, they're

703
00:40:08,720 --> 00:40:11,200
still paying more, right? on their base

704
00:40:11,200 --> 00:40:12,000
charges.

705
00:40:12,000 --> 00:40:14,960
>> Not according to your chart.

706
00:40:14,960 --> 00:40:16,400
>> Well, that's a it's a

707
00:40:16,400 --> 00:40:17,760
>> different that's I mean I'm gonna get

708
00:40:17,760 --> 00:40:20,160
stuck on that. It's that scale. That's

709
00:40:20,160 --> 00:40:21,200
exactly what it's telling me.

710
00:40:21,200 --> 00:40:23,920
>> I wish you I wish you can move forward,

711
00:40:23,920 --> 00:40:24,240
but

712
00:40:24,240 --> 00:40:26,160
>> but here's Yeah, I know. I'm trying to I

713
00:40:26,160 --> 00:40:28,560
wish that it was it was in a different

714
00:40:28,560 --> 00:40:31,280
way. But here's here's in my math book.

715
00:40:31,280 --> 00:40:34,800
So look at take away the graphs. Okay.

716
00:40:34,800 --> 00:40:37,839
>> Take away the the the the Well, not not

717
00:40:37,839 --> 00:40:40,240
you per I mean just in here. Okay. I was

718
00:40:40,240 --> 00:40:40,880
like, "Okay, great."

719
00:40:40,880 --> 00:40:42,400
>> So, you're looking at this. Go ahead and

720
00:40:42,400 --> 00:40:45,920
put this one here. Go ahead res

721
00:40:45,920 --> 00:40:46,880
put it on there.

722
00:40:46,880 --> 00:40:49,440
>> Okay. And do the gap analysis so you can

723
00:40:49,440 --> 00:40:51,680
kind of figure out. Once again, I'm

724
00:40:51,680 --> 00:40:52,960
thinking in my head, and that could be

725
00:40:52,960 --> 00:40:55,599
dangerous, but I'm looking at the gap

726
00:40:55,599 --> 00:40:56,960
difference that you actually have

727
00:40:56,960 --> 00:40:58,800
between the two. So, when you look

728
00:40:58,800 --> 00:41:00,880
proportionally, look at the the the

729
00:41:00,880 --> 00:41:02,480
spread that you have. You're looking at

730
00:41:02,480 --> 00:41:05,440
about a $5, you know, in in the

731
00:41:05,440 --> 00:41:06,720
different increments, right?

732
00:41:06,720 --> 00:41:07,119
>> Mhm.

733
00:41:07,119 --> 00:41:08,240
>> You with me?

734
00:41:08,240 --> 00:41:09,040
>> Mhm.

735
00:41:09,040 --> 00:41:10,560
>> Okay. So now go ahead and put the

736
00:41:10,560 --> 00:41:11,359
commercial on there.

737
00:41:11,359 --> 00:41:12,079
>> Yes, sir.

738
00:41:12,079 --> 00:41:14,400
>> So when you do the analysis and now

739
00:41:14,400 --> 00:41:15,680
you're doing the spread, look at the

740
00:41:15,680 --> 00:41:17,040
difference between the spread.

741
00:41:17,040 --> 00:41:19,599
>> Right.

742
00:41:19,599 --> 00:41:22,640
>> So that's where it skews the it skews

743
00:41:22,640 --> 00:41:25,280
the the actual bar chart.

744
00:41:25,280 --> 00:41:27,520
>> So it's more about the gap and the

745
00:41:27,520 --> 00:41:30,400
spread. So I know what he's talking

746
00:41:30,400 --> 00:41:30,880
about.

747
00:41:30,880 --> 00:41:31,680
>> Sure.

748
00:41:31,680 --> 00:41:34,480
>> But just doing it I that's what you need

749
00:41:34,480 --> 00:41:36,000
to pay attention to. So you actually

750
00:41:36,000 --> 00:41:38,400
have a bigger spread. That's where the

751
00:41:38,400 --> 00:41:41,280
commercial side is going to be because

752
00:41:41,280 --> 00:41:42,000
of the gap.

753
00:41:42,000 --> 00:41:44,160
>> But based on our billing system, we

754
00:41:44,160 --> 00:41:46,720
don't look at that. Based on our billing

755
00:41:46,720 --> 00:41:49,520
system is what comes in goes out. That's

756
00:41:49,520 --> 00:41:51,040
the way it should be and that should be

757
00:41:51,040 --> 00:41:53,040
represented.

758
00:41:53,040 --> 00:41:54,560
>> But it shouldn't be that way. It's based

759
00:41:54,560 --> 00:41:56,960
on on volume.

760
00:41:56,960 --> 00:41:59,920
It's like we're like we're comparing a

761
00:41:59,920 --> 00:42:02,560
resident that uses 5500 compared to

762
00:42:02,560 --> 00:42:05,920
someone a user that's using 75,000. So I

763
00:42:05,920 --> 00:42:07,680
mean it's like if we'd have to find a

764
00:42:07,680 --> 00:42:10,560
commercial user that uses 5500 or closer

765
00:42:10,560 --> 00:42:12,960
to 5500 to really show a bar graph that

766
00:42:12,960 --> 00:42:13,920
makes sense.

767
00:42:13,920 --> 00:42:15,760
>> But that's the purpose of the visual bar

768
00:42:15,760 --> 00:42:22,550
graph is to show you the ratio the the comparison

769
00:42:22,560 --> 00:42:23,760
» look at it this way.

770
00:42:23,760 --> 00:42:25,599
>> Yeah. No, I I see the numbers there, but

771
00:42:25,599 --> 00:42:28,160
still it's it's if you look at the

772
00:42:28,160 --> 00:42:30,640
wastewater, it's not being built

773
00:42:30,640 --> 00:42:33,119
proportionate to the the water when you

774
00:42:33,119 --> 00:42:35,760
compared to the residential.

775
00:42:35,760 --> 00:42:36,000
>> Yeah.

776
00:42:36,000 --> 00:42:37,280
>> And that's what I'm getting at. It

777
00:42:37,280 --> 00:42:38,480
should be the same.

778
00:42:38,480 --> 00:42:41,520
>> Yeah. But that's that's what changed,

779
00:42:41,520 --> 00:42:42,480
>> right?

780
00:42:42,480 --> 00:42:44,319
>> But the volunte

781
00:42:44,319 --> 00:42:45,680
is the same.

782
00:42:45,680 --> 00:42:46,960
>> Yeah. I mean it is I mean

783
00:42:46,960 --> 00:42:48,160
>> but not the building part of it

784
00:42:48,160 --> 00:42:51,359
>> changing where nothing has changed

785
00:42:51,359 --> 00:42:54,640
what's being charged to the res.

786
00:42:54,640 --> 00:43:00,640
>> Yeah. We'll look we'll look at the the display. Okay. We'll come back. But

787
00:43:00,640 --> 00:43:01,920
>> yeah, you might need to get a fair

788
00:43:01,920 --> 00:43:03,760
analysis of of the difference between

789
00:43:03,760 --> 00:43:04,960
commercial and residential.

790
00:43:04,960 --> 00:43:06,960
>> Yeah. Let's just look at the display and

791
00:43:06,960 --> 00:43:09,119
just look at the gap analysis and do it

792
00:43:09,119 --> 00:43:10,560
as a proportional

793
00:43:10,560 --> 00:43:12,000
>> as close as you can get it.

794
00:43:12,000 --> 00:43:13,040
>> Yeah. Yeah.

795
00:43:13,040 --> 00:43:17,280
>> Just just look at that. I think we'll get what you know in a sense a

796
00:43:17,280 --> 00:43:18,800
little bit more better visual by being

797
00:43:18,800 --> 00:43:19,680
able to do that.

798
00:43:19,680 --> 00:43:20,960
>> Yeah. So

799
00:43:20,960 --> 00:43:25,359
>> be able to do Y.

800
00:43:25,359 --> 00:43:25,920
>> Okay.

801
00:43:25,920 --> 00:43:28,079
>> All right. Let's go ahead and uh let's

802
00:43:28,079 --> 00:43:29,359
go ahead and keep going.

803
00:43:29,359 --> 00:43:30,240
>> Yes, sir.

804
00:43:30,240 --> 00:43:32,560
>> Well, this is this is the one I kind of

805
00:43:32,560 --> 00:43:34,640
like in some ways, but not in other

806
00:43:34,640 --> 00:43:36,640
ways, but it's it's good.

807
00:43:36,640 --> 00:43:38,720
>> Fair. I think the residential regional

808
00:43:38,720 --> 00:43:42,000
comparison just so because this is where

809
00:43:42,000 --> 00:43:44,160
some of us as we go through this process

810
00:43:44,160 --> 00:43:45,760
are going to get approached by our

811
00:43:45,760 --> 00:43:47,839
residents and they're going to be asking

812
00:43:47,839 --> 00:43:50,160
>> and this is a good one where you can

813
00:43:50,160 --> 00:43:52,480
look and say hey let me tell you about

814
00:43:52,480 --> 00:43:55,760
folks around us and how we tie into that

815
00:43:55,760 --> 00:43:56,319
so

816
00:43:56,319 --> 00:43:59,440
>> absolutely right so currently we are

817
00:43:59,440 --> 00:44:01,280
winning quote I don't know we're we're

818
00:44:01,280 --> 00:44:03,359
at the bottom of the chart

819
00:44:03,359 --> 00:44:04,079
>> that's winning

820
00:44:04,079 --> 00:44:06,640
>> I say I say it in how you look at it

821
00:44:06,640 --> 00:44:09,280
Yeah, right.

822
00:44:09,280 --> 00:44:12,710
>> What are we doing?

823
00:44:12,720 --> 00:44:15,119
» Yeah. Sorry for the joke. I was kind of

824
00:44:15,119 --> 00:44:16,160
>> trying to playing off what the mayor

825
00:44:16,160 --> 00:44:17,119
said. Like this is a kind of a

826
00:44:17,119 --> 00:44:20,079
double-edged sword. We we aren't maybe

827
00:44:20,079 --> 00:44:21,760
charging enough for this service. And

828
00:44:21,760 --> 00:44:26,160
that was evidenced when we looked at the stability of the fund if we don't

829
00:44:26,160 --> 00:44:28,720
change rates. Period. And we have

830
00:44:28,720 --> 00:44:31,280
substantial increases coming. Million

831
00:44:31,280 --> 00:44:32,880
dollars more in debt on top of the

832
00:44:32,880 --> 00:44:35,680
800,000 we already have. We've got to do

833
00:44:35,680 --> 00:44:38,000
something about that. Even with the

834
00:44:38,000 --> 00:44:40,560
proposed rate change in 27, now again, I

835
00:44:40,560 --> 00:44:42,640
had more rate increases proposed in the

836
00:44:42,640 --> 00:44:45,359
out years, but if this one change takes

837
00:44:45,359 --> 00:44:48,240
you from the bottom of this chart to the

838
00:44:48,240 --> 00:44:50,480
middle of the pack, and it's an

839
00:44:50,480 --> 00:44:52,640
important note, this is reflecting their

840
00:44:52,640 --> 00:44:54,319
current rates. San Antonio has already

841
00:44:54,319 --> 00:44:56,240
posted their proposed rates for the

842
00:44:56,240 --> 00:44:58,160
coming year. I didn't use them because

843
00:44:58,160 --> 00:45:00,960
it's not acted on yet. It's not adopted.

844
00:45:00,960 --> 00:45:02,319
And so you can go to their website, you

845
00:45:02,319 --> 00:45:04,000
can look up their rate schedule and you

846
00:45:04,000 --> 00:45:05,040
can find what they're going to charge

847
00:45:05,040 --> 00:45:07,040
next year. A lot of these communities

848
00:45:07,040 --> 00:45:10,000
may be looking at the same thing. A

849
00:45:10,000 --> 00:45:12,800
number of them as well, right? Helotees,

850
00:45:12,800 --> 00:45:16,480
Terrell Hills, and not Leon Valley,

851
00:45:16,480 --> 00:45:17,839
Castle Hills maybe. Oh yeah. Yeah,

852
00:45:17,839 --> 00:45:19,119
because they're all the same are the

853
00:45:19,119 --> 00:45:21,839
outside San Antonio rates. So they too

854
00:45:21,839 --> 00:45:24,160
will go up lock step. At least that's my

855
00:45:24,160 --> 00:45:25,599
understanding. I wasn't able to confirm

856
00:45:25,599 --> 00:45:27,760
with those cities, but they are outside

857
00:45:27,760 --> 00:45:32,390
the city and they're served by saws.

858
00:45:32,400 --> 00:45:34,079
Yeah. And and we did use the saws

859
00:45:34,079 --> 00:45:36,880
outside city rates.

860
00:45:36,880 --> 00:45:39,119
>> Yeah. Yeah.

861
00:45:39,119 --> 00:45:43,599
>> They don't have their own water. So they

862
00:45:43,599 --> 00:45:47,349
saw

863
00:45:47,359 --> 00:45:49,760
» Yeah. And some of those are already

864
00:45:49,760 --> 00:45:53,280
locked in. They can't grow anymore.

865
00:45:53,280 --> 00:45:55,680
Yeah. They're already limited. So, you

866
00:45:55,680 --> 00:45:57,520
know, in the sense of any

867
00:45:57,520 --> 00:45:59,119
infrastructure, it would just be the

868
00:45:59,119 --> 00:46:00,560
replacement. It wouldn't be for

869
00:46:00,560 --> 00:46:02,240
expansion

870
00:46:02,240 --> 00:46:04,000
>> as the other two. But you know the

871
00:46:04,000 --> 00:46:06,480
unique thing about it if you look and

872
00:46:06,480 --> 00:46:09,680
you look at the colors

873
00:46:09,680 --> 00:46:10,319
>> the same.

874
00:46:10,319 --> 00:46:12,560
>> No, look at the disproportionately go

875
00:46:12,560 --> 00:46:14,480
ahead and look at how much you actually

876
00:46:14,480 --> 00:46:15,839
have between the water and the

877
00:46:15,839 --> 00:46:18,000
wastewater. I mean look at the one on

878
00:46:18,000 --> 00:46:20,560
the top divine and and look which one is

879
00:46:20,560 --> 00:46:22,000
bigger than the others and you go down

880
00:46:22,000 --> 00:46:24,160
and compare the others. So that that

881
00:46:24,160 --> 00:46:27,440
also shows you where some of the other

882
00:46:27,440 --> 00:46:28,960
communities are having to spend a lot

883
00:46:28,960 --> 00:46:32,079
more money in one compared to the other.

884
00:46:32,079 --> 00:46:35,119
>> So it depends on their needs are what

885
00:46:35,119 --> 00:46:37,520
they express their capital.

886
00:46:37,520 --> 00:46:38,960
>> Yeah.

887
00:46:38,960 --> 00:46:40,960
>> So it's interesting to look at that and

888
00:46:40,960 --> 00:46:44,079
then look at our proposed one and you're

889
00:46:44,079 --> 00:46:47,599
like okay we're we're that's right in

890
00:46:47,599 --> 00:46:48,960
the middle and then in a sense it's kind

891
00:46:48,960 --> 00:46:50,640
of balanced a little bit you know based

892
00:46:50,640 --> 00:46:54,240
on the needs that we actually have. Um,

893
00:46:54,240 --> 00:46:56,480
so just a food for thought and a sense

894
00:46:56,480 --> 00:46:58,720
of consideration to try to take care.

895
00:46:58,720 --> 00:46:59,599
But

896
00:46:59,599 --> 00:47:05,200
>> would the average customer bill go up?

897
00:47:05,200 --> 00:47:06,560
>> Uh, we have that

898
00:47:06,560 --> 00:47:08,000
>> $7.

899
00:47:08,000 --> 00:47:10,000
>> Yeah. Yeah, we have that.

900
00:47:10,000 --> 00:47:12,000
>> Yeah. See, when I look at this graph, I

901
00:47:12,000 --> 00:47:12,880
see something different.

902
00:47:12,880 --> 00:47:15,200
>> Well, it' be it'd be more like $18

903
00:47:15,200 --> 00:47:18,560
total. Um, so that the question as to

904
00:47:18,560 --> 00:47:19,040
the typical

905
00:47:19,040 --> 00:47:21,040
>> Let's see what I see.

906
00:47:21,040 --> 00:47:23,839
>> There we go. I see income per capita.

907
00:47:23,839 --> 00:47:26,319
That's what I see. The differences

908
00:47:26,319 --> 00:47:29,839
>> income per capita.

909
00:47:29,839 --> 00:47:31,599
>> You're talking about Natalia versus

910
00:47:31,599 --> 00:47:36,800
Castle Hills. And and it's true. They are landlocked. They can't expand

911
00:47:36,800 --> 00:47:38,079
beyond, you know, their current

912
00:47:38,079 --> 00:47:39,359
boundary.

913
00:47:39,359 --> 00:47:42,560
>> Yeah. But some but hills, Castle Hill,

914
00:47:42,560 --> 00:47:45,040
all those are made by salt.

915
00:47:45,040 --> 00:47:45,599
>> Yeah.

916
00:47:45,599 --> 00:47:48,319
>> They are salt. So they are

917
00:47:48,319 --> 00:47:50,160
>> which is the other side of that factor.

918
00:47:50,160 --> 00:47:53,280
Yeah. So

919
00:47:53,280 --> 00:47:59,190
6.5%.

920
00:47:59,200 --> 00:47:59,760
» Yeah.

921
00:47:59,760 --> 00:48:02,400
>> No, I mean I agree that the it needs to

922
00:48:02,400 --> 00:48:05,599
come up. I I I agree with with being for

923
00:48:05,599 --> 00:48:08,640
the proposed part is it's just I had

924
00:48:08,640 --> 00:48:10,720
said in a previous meeting the opposite

925
00:48:10,720 --> 00:48:13,520
is when I see that number and I'm

926
00:48:13,520 --> 00:48:15,920
deciding where to live is going to be my

927
00:48:15,920 --> 00:48:16,640
choice

928
00:48:16,640 --> 00:48:18,400
>> because they have a lower utility bill

929
00:48:18,400 --> 00:48:22,240
than say Castle Hill or or Natalia, you

930
00:48:22,240 --> 00:48:23,359
know, any of the other surrounding

931
00:48:23,359 --> 00:48:24,240
areas.

932
00:48:24,240 --> 00:48:24,559
>> Sure.

933
00:48:24,559 --> 00:48:27,920
>> But that doesn't mean that makes us

934
00:48:27,920 --> 00:48:29,680
uh efficient

935
00:48:29,680 --> 00:48:30,319
>> to say.

936
00:48:30,319 --> 00:48:32,640
>> Yes. Yeah. So, just back to Alderman

937
00:48:32,640 --> 00:48:34,319
Martinez's question, the the typical

938
00:48:34,319 --> 00:48:37,760
impact is $18 or $1796 more precisely

939
00:48:37,760 --> 00:48:39,359
when you do the water and the wastewater

940
00:48:39,359 --> 00:48:42,160
bill difference. Um, and then sort of

941
00:48:42,160 --> 00:48:44,160
dovetailing what San Antonio plans to

942
00:48:44,160 --> 00:48:47,440
do, you're off by what, 6 32 cents right

943
00:48:47,440 --> 00:48:49,040
now for Terrell Hills, Helert, and

944
00:48:49,040 --> 00:48:51,440
Castle Hills. If they go up by that

945
00:48:51,440 --> 00:48:53,119
6.9%, you're immediately going to beat

946
00:48:53,119 --> 00:48:55,760
three other cities on this comparison.

947
00:48:55,760 --> 00:48:58,079
>> When everybody else recalibrates the 27,

948
00:48:58,079 --> 00:49:00,000
your 27 will be contrasted to theirs.

949
00:49:00,000 --> 00:49:01,280
And those three are likely going to be

950
00:49:01,280 --> 00:49:04,559
above you. Again, um we're still we're

951
00:49:04,559 --> 00:49:06,160
still in a lot. I mean, I don't want to

952
00:49:06,160 --> 00:49:09,040
get into other stuff, but don't I could

953
00:49:09,040 --> 00:49:11,359
easily say, let's compare ourselves with

954
00:49:11,359 --> 00:49:14,079
our property taxes. San Antonio to us,

955
00:49:14,079 --> 00:49:15,359
it's 98,

956
00:49:15,359 --> 00:49:15,760
>> right,

957
00:49:15,760 --> 00:49:18,079
>> in our tax rate. So, you can make it up

958
00:49:18,079 --> 00:49:19,680
in other ways to be able to say that

959
00:49:19,680 --> 00:49:21,680
this is a good place to live. The last

960
00:49:21,680 --> 00:49:23,599
thing I want to put on this and and the

961
00:49:23,599 --> 00:49:25,359
council I want to say take the time to

962
00:49:25,359 --> 00:49:28,559
say thanks to public works to Zach uh

963
00:49:28,559 --> 00:49:31,200
all of our folks in here because don't

964
00:49:31,200 --> 00:49:34,319
forget that before we could get here and

965
00:49:34,319 --> 00:49:35,920
Matthew being able to help us out with

966
00:49:35,920 --> 00:49:40,160
this is we were dealing with that there

967
00:49:40,160 --> 00:49:42,319
was no way we could figure this out

968
00:49:42,319 --> 00:49:44,160
unless we took care because we didn't

969
00:49:44,160 --> 00:49:47,280
know how much water we were actually

970
00:49:47,280 --> 00:49:49,280
using and the consumption and

971
00:49:49,280 --> 00:49:53,119
everything. Now, now we're close. Now we

972
00:49:53,119 --> 00:49:55,680
can figure it out. And if people ask,

973
00:49:55,680 --> 00:49:58,319
hey, we worked on it. Now we have, it

974
00:49:58,319 --> 00:50:00,160
would be hard for us to make a decision

975
00:50:00,160 --> 00:50:02,880
and be very gray. Now we're a lot more

976
00:50:02,880 --> 00:50:04,720
black and white. So, this is a perfect

977
00:50:04,720 --> 00:50:06,720
time for us to go ahead and and start

978
00:50:06,720 --> 00:50:08,960
looking at this based on what we have in

979
00:50:08,960 --> 00:50:10,960
front of us.

980
00:50:10,960 --> 00:50:13,119
Great. And then while I showed this

981
00:50:13,119 --> 00:50:14,880
comparison, if you needed to be the top

982
00:50:14,880 --> 00:50:17,200
of this chart to provide safe and

983
00:50:17,200 --> 00:50:19,200
reliable clean water to your residents,

984
00:50:19,200 --> 00:50:20,720
I'd recommend you be at the top of this

985
00:50:20,720 --> 00:50:23,359
chart. Right? Comparisons aside, you got

986
00:50:23,359 --> 00:50:24,720
to do for your community what you have

987
00:50:24,720 --> 00:50:26,800
to do because they won't come if the

988
00:50:26,800 --> 00:50:28,559
rates low and the water's brown. All

989
00:50:28,559 --> 00:50:31,440
right? Uh so so that's your paramount

990
00:50:31,440 --> 00:50:33,680
responsibility is to make sure that

991
00:50:33,680 --> 00:50:36,480
you're providing safe and reliable water

992
00:50:36,480 --> 00:50:38,160
and wastewater services and and your

993
00:50:38,160 --> 00:50:39,440
team is doing that. So I'm not saying

994
00:50:39,440 --> 00:50:42,000
there's a problem. I'm just saying

995
00:50:42,000 --> 00:50:44,640
I think I think they'd be more upset

996
00:50:44,640 --> 00:50:46,640
with problems in your system than the

997
00:50:46,640 --> 00:50:48,880
increase needed which puts them back in

998
00:50:48,880 --> 00:50:50,319
parody with the rest of the community

999
00:50:50,319 --> 00:50:52,559
for similar services. So, it's not a

1000
00:50:52,559 --> 00:50:54,079
great story to say we have an increase

1001
00:50:54,079 --> 00:50:55,839
coming. It does help to show that we

1002
00:50:55,839 --> 00:50:58,000
were behind and and to echo the mayor

1003
00:50:58,000 --> 00:50:59,520
kudos to the team for effectively

1004
00:50:59,520 --> 00:51:01,839
operating a barebones ship and keeping

1005
00:51:01,839 --> 00:51:03,440
it afloat

1006
00:51:03,440 --> 00:51:09,589
um and and doing so gracefully.

1007
00:51:09,599 --> 00:51:11,760
anything else on the comparisons or the

1008
00:51:11,760 --> 00:51:13,760
rate plan?

1009
00:51:13,760 --> 00:51:15,119
Because the next slide really just kind

1010
00:51:15,119 --> 00:51:17,040
of gets into some other things that you

1011
00:51:17,040 --> 00:51:19,520
might consider. Um, this is now very

1012
00:51:19,520 --> 00:51:20,960
forward-looking. It's not even the rate

1013
00:51:20,960 --> 00:51:23,280
plan for 27. I've already said this

1014
00:51:23,280 --> 00:51:26,480
once, maybe stop including volumes in

1015
00:51:26,480 --> 00:51:28,160
the base.

1016
00:51:28,160 --> 00:51:29,920
So, you'd start charging for those 3,000

1017
00:51:29,920 --> 00:51:32,800
gallons. Um, you could reduce the number

1018
00:51:32,800 --> 00:51:36,079
of tiers, maybe simplify a little bit.

1019
00:51:36,079 --> 00:51:37,599
nothing you have to do. It's not that

1020
00:51:37,599 --> 00:51:39,200
you're wrong today. These are just other

1021
00:51:39,200 --> 00:51:42,160
rate design options. Um, and then you

1022
00:51:42,160 --> 00:51:43,520
could mirror the commercial differential

1023
00:51:43,520 --> 00:51:45,359
in the water minimums that you have in

1024
00:51:45,359 --> 00:51:47,599
wastewater minimums. And I have a number

1025
00:51:47,599 --> 00:51:49,200
of communities throughout the state that

1026
00:51:49,200 --> 00:51:51,599
charge commercial more, not just because

1027
00:51:51,599 --> 00:51:54,000
their meters are bigger, right? That

1028
00:51:54,000 --> 00:51:55,440
that's equal, right? If you have a big

1029
00:51:55,440 --> 00:51:56,720
residential meter, you're paying more,

1030
00:51:56,720 --> 00:51:58,480
but because commercial can pay a little

1031
00:51:58,480 --> 00:52:01,359
more. Um, and so I have more and more

1032
00:52:01,359 --> 00:52:04,559
communities looking at that and making a

1033
00:52:04,559 --> 00:52:06,720
decision to charge a differential. One

1034
00:52:06,720 --> 00:52:08,480
presented this week was a 5%

1035
00:52:08,480 --> 00:52:11,119
differential. All rates need to be 5%. I

1036
00:52:11,119 --> 00:52:12,640
have another community that charges a

1037
00:52:12,640 --> 00:52:15,440
20% differential,

1038
00:52:15,440 --> 00:52:18,480
right? And they have $2 billion in their

1039
00:52:18,480 --> 00:52:20,640
CIP.

1040
00:52:20,640 --> 00:52:23,760
So they're going to need the money and

1041
00:52:23,760 --> 00:52:25,760
it's a huge community as you imagine,

1042
00:52:25,760 --> 00:52:28,400
right? Um but there is a differential

1043
00:52:28,400 --> 00:52:29,599
today on the rates and we're going to

1044
00:52:29,599 --> 00:52:31,440
maintain that for commercial. So again

1045
00:52:31,440 --> 00:52:32,800
we're not saying you have to do those

1046
00:52:32,800 --> 00:52:35,359
things but to the point of the balloon

1047
00:52:35,359 --> 00:52:38,640
how who pays what proportionality we

1048
00:52:38,640 --> 00:52:40,079
need the same amount of money to operate

1049
00:52:40,079 --> 00:52:42,960
the system safely. We could squeeze a

1050
00:52:42,960 --> 00:52:44,960
little bit right and shift a little more

1051
00:52:44,960 --> 00:52:46,000
of the burden to our commercial

1052
00:52:46,000 --> 00:52:47,839
customers perhaps without breaking the

1053
00:52:47,839 --> 00:52:49,599
bank for them which might ease the

1054
00:52:49,599 --> 00:52:52,000
burden on our residents. That's a tough

1055
00:52:52,000 --> 00:52:54,000
decision you'll make, but I can analyze

1056
00:52:54,000 --> 00:52:56,720
it. If if you instruct Zach and team to

1057
00:52:56,720 --> 00:52:58,880
look at it, we'll come back uh with some

1058
00:52:58,880 --> 00:53:01,520
of those options in in future years. So,

1059
00:53:01,520 --> 00:53:03,119
again, I wanted to paint a picture. This

1060
00:53:03,119 --> 00:53:04,800
isn't the only plan.

1061
00:53:04,800 --> 00:53:06,400
>> No, sir. This is these are some other

1062
00:53:06,400 --> 00:53:07,839
things to consider in the future to

1063
00:53:07,839 --> 00:53:10,160
mitigate the continued increases I've

1064
00:53:10,160 --> 00:53:11,839
showed you.

1065
00:53:11,839 --> 00:53:13,839
>> Uh past that, just want to say thank

1066
00:53:13,839 --> 00:53:16,559
you. Uh but I'm happy to entertain any

1067
00:53:16,559 --> 00:53:18,240
other questions or go back to slides

1068
00:53:18,240 --> 00:53:19,599
that

1069
00:53:19,599 --> 00:53:22,240
>> So I want to break down the uh the

1070
00:53:22,240 --> 00:53:23,040
increase.

1071
00:53:23,040 --> 00:53:23,920
>> Sure.

1072
00:53:23,920 --> 00:53:25,599
>> Um

1073
00:53:25,599 --> 00:53:27,760
what I don't see is I don't see numbers

1074
00:53:27,760 --> 00:53:31,040
for the on and m in comparison to our

1075
00:53:31,040 --> 00:53:34,790
current rates.

1076
00:53:34,800 --> 00:53:37,040
» Do you mean the actual cost per year of

1077
00:53:37,040 --> 00:53:38,559
your operating cost?

1078
00:53:38,559 --> 00:53:43,510
>> Okay, I have that.

1079
00:53:43,520 --> 00:53:45,359
anybody wants. I just don't have it all.

1080
00:53:45,359 --> 00:53:49,280
I apologize. Let me grab that.

1081
00:53:49,280 --> 00:53:51,040
I should have I could have shown that

1082
00:53:51,040 --> 00:53:57,030
perhaps here on your cost projections.

1083
00:53:57,040 --> 00:54:00,000
» So the rates that should keep take but

1084
00:54:00,000 --> 00:54:01,760
just so the rates that we're actually

1085
00:54:01,760 --> 00:54:03,920
adopting this is starting the next the

1086
00:54:03,920 --> 00:54:05,040
next fiscal year.

1087
00:54:05,040 --> 00:54:05,359
>> Yeah.

1088
00:54:05,359 --> 00:54:11,109
>> So it go 27.

1089
00:54:11,119 --> 00:54:13,280
» Yeah.

1090
00:54:13,280 --> 00:54:17,359
be able to do that.

1091
00:54:17,359 --> 00:54:21,200
>> So, your cost uh your operating cost in

1092
00:54:21,200 --> 00:54:24,000
2026 I show as being from a budget

1093
00:54:24,000 --> 00:54:26,800
basis. Um included some onetime items

1094
00:54:26,800 --> 00:54:29,280
about 1.9 million. Some of those onetime

1095
00:54:29,280 --> 00:54:31,599
items are coming off. So 27 I'm showing

1096
00:54:31,599 --> 00:54:33,839
1.8 million.

1097
00:54:33,839 --> 00:54:40,079
Uh so 1.845 845 in 2028, 1.906

1098
00:54:40,079 --> 00:54:43,440
in 2029, 1.968

1099
00:54:43,440 --> 00:54:47,520
in 2030, and 2.038.

1100
00:54:47,520 --> 00:54:50,480
So, it's approximately $125,000

1101
00:54:50,480 --> 00:54:52,079
more

1102
00:54:52,079 --> 00:54:53,680
um

1103
00:54:53,680 --> 00:54:55,599
than the 26 budget because you had some

1104
00:54:55,599 --> 00:54:58,720
one-time monies, right? Uh the average

1105
00:54:58,720 --> 00:55:00,079
rate of growth, again, we've already

1106
00:55:00,079 --> 00:55:01,680
kind of discussed where those are.

1107
00:55:01,680 --> 00:55:04,160
average increase all in is about 10.5%

1108
00:55:04,160 --> 00:55:06,400
inclusive of debt but your on& and M is

1109
00:55:06,400 --> 00:55:08,720
growing very slowly. Um I didn't go into

1110
00:55:08,720 --> 00:55:11,599
all the the various factors but we could

1111
00:55:11,599 --> 00:55:13,359
talk about the inflation factors applied

1112
00:55:13,359 --> 00:55:14,559
a little bit if you want.

1113
00:55:14,559 --> 00:55:17,440
>> No I want to focus on the debt service.

1114
00:55:17,440 --> 00:55:20,480
So the comment was that because of the

1115
00:55:20,480 --> 00:55:23,359
debt service is the

1116
00:55:23,359 --> 00:55:26,960
emergency state of having to increase

1117
00:55:26,960 --> 00:55:29,839
especially over the next 5year period.

1118
00:55:29,839 --> 00:55:32,720
Uh this debt service the debt service

1119
00:55:32,720 --> 00:55:35,680
was incurred to

1120
00:55:35,680 --> 00:55:39,760
work on existing infrastructure or did

1121
00:55:39,760 --> 00:55:42,000
it include future?

1122
00:55:42,000 --> 00:55:43,760
>> You're talking about the one that was

1123
00:55:43,760 --> 00:55:45,680
>> whatever debt service is being talked

1124
00:55:45,680 --> 00:55:48,079
about as being part of the reason we

1125
00:55:48,079 --> 00:55:49,280
have to increase the rates.

1126
00:55:49,280 --> 00:55:53,680
>> Yeah. So the the increase uh the the

1127
00:55:53,680 --> 00:55:55,680
increase that we just had was for the

1128
00:55:55,680 --> 00:55:56,720
new well

1129
00:55:56,720 --> 00:55:58,960
>> right. So that was the 5 million that we

1130
00:55:58,960 --> 00:56:00,880
issued in 26. That's

1131
00:56:00,880 --> 00:56:02,559
>> right. That's for future growth.

1132
00:56:02,559 --> 00:56:05,359
>> Yes, that's for the future growth. Okay.

1133
00:56:05,359 --> 00:56:08,960
Uh the 17 million that I think he that

1134
00:56:08,960 --> 00:56:11,839
Matthew built in 1617 million that's

1135
00:56:11,839 --> 00:56:14,960
shown on there uh is the projected debt

1136
00:56:14,960 --> 00:56:17,040
service that is for the wastewater

1137
00:56:17,040 --> 00:56:17,920
treatment plan.

1138
00:56:17,920 --> 00:56:19,119
>> So if you notice that

1139
00:56:19,119 --> 00:56:21,119
>> that's now that's going to be for

1140
00:56:21,119 --> 00:56:22,640
enhancements of our current

1141
00:56:22,640 --> 00:56:25,680
>> that is for to make the the growth

1142
00:56:25,680 --> 00:56:27,200
that's the

1143
00:56:27,200 --> 00:56:28,880
plans for but don't have.

1144
00:56:28,880 --> 00:56:31,839
>> So when we took out these these debts,

1145
00:56:31,839 --> 00:56:33,680
did we tell the taxpayer we were going

1146
00:56:33,680 --> 00:56:35,200
to charge them on their utility to be

1147
00:56:35,200 --> 00:56:36,160
able to pay these off?

1148
00:56:36,160 --> 00:56:38,400
>> No. So when well the original the debt

1149
00:56:38,400 --> 00:56:42,240
that we just um debt that we just issued

1150
00:56:42,240 --> 00:56:46,000
was uh obviously under a co. So it was

1151
00:56:46,000 --> 00:56:49,040
the idea that um it could be covered

1152
00:56:49,040 --> 00:56:52,400
without distribution taxes but

1153
00:56:52,400 --> 00:56:55,200
>> that and and and connection fees or

1154
00:56:55,200 --> 00:56:58,000
whatever those tap fees

1155
00:56:58,000 --> 00:56:58,400
>> right

1156
00:56:58,400 --> 00:56:59,280
>> impact impact

1157
00:56:59,280 --> 00:57:00,720
>> impact. There you go. Thank you. So

1158
00:57:00,720 --> 00:57:03,920
which are only paid by the developers of

1159
00:57:03,920 --> 00:57:04,799
new development

1160
00:57:04,799 --> 00:57:06,720
>> but that's the purpose of the impact fee

1161
00:57:06,720 --> 00:57:09,200
is to pay for any future growth

1162
00:57:09,200 --> 00:57:11,119
>> which should not be a burden of the

1163
00:57:11,119 --> 00:57:12,240
current citizens.

1164
00:57:12,240 --> 00:57:12,799
>> That's great.

1165
00:57:12,799 --> 00:57:13,520
>> Right.

1166
00:57:13,520 --> 00:57:15,520
>> So this debt service that I keep hearing

1167
00:57:15,520 --> 00:57:18,160
about this is debt service that we're

1168
00:57:18,160 --> 00:57:20,240
incurring because of the the growth of

1169
00:57:20,240 --> 00:57:21,359
lid

1170
00:57:21,359 --> 00:57:23,520
>> but yet we're having our current utility

1171
00:57:23,520 --> 00:57:25,040
customers paying this.

1172
00:57:25,040 --> 00:57:26,640
>> Yeah.

1173
00:57:26,640 --> 00:57:30,319
Right. So 12in line CO

1174
00:57:30,319 --> 00:57:31,200
>> that was CO

1175
00:57:31,200 --> 00:57:32,799
>> that should have been installed when HB

1176
00:57:32,799 --> 00:57:33,520
came along

1177
00:57:33,520 --> 00:57:36,480
>> right but when we took out these these

1178
00:57:36,480 --> 00:57:38,559
certificates of of debt or whatever it's

1179
00:57:38,559 --> 00:57:39,520
called

1180
00:57:39,520 --> 00:57:42,160
>> we did not inform the the general public

1181
00:57:42,160 --> 00:57:43,680
that it was going to be taken out of the

1182
00:57:43,680 --> 00:57:45,119
utility that they were going to have to

1183
00:57:45,119 --> 00:57:47,680
pay for through the utility.

1184
00:57:47,680 --> 00:57:50,079
>> So a portion of it from the utility but

1185
00:57:50,079 --> 00:57:51,599
a portion of it in a sense

1186
00:57:51,599 --> 00:57:53,839
>> but is that what we what we expressed to

1187
00:57:53,839 --> 00:57:55,760
them when when we had the the public

1188
00:57:55,760 --> 00:57:56,960
meetings? Yes,

1189
00:57:56,960 --> 00:57:59,119
>> we told them that these these debts that

1190
00:57:59,119 --> 00:58:00,960
we're incurring are going to be part of

1191
00:58:00,960 --> 00:58:01,760
your utility bill.

1192
00:58:01,760 --> 00:58:03,280
>> So, just think about it. I mean, what

1193
00:58:03,280 --> 00:58:03,920
are we actually

1194
00:58:03,920 --> 00:58:06,720
>> No, I I know how we can come about

1195
00:58:06,720 --> 00:58:09,680
paying for it. But what I'm getting at

1196
00:58:09,680 --> 00:58:13,680
is that we should not be taxing our

1197
00:58:13,680 --> 00:58:16,720
residents for future growth. That needs

1198
00:58:16,720 --> 00:58:18,640
to come through

1199
00:58:18,640 --> 00:58:19,440
uh

1200
00:58:19,440 --> 00:58:20,720
>> I I guess budgeting.

1201
00:58:20,720 --> 00:58:22,400
>> So, I don't think here here's the thing.

1202
00:58:22,400 --> 00:58:24,640
I don't think we obviously I wasn't here

1203
00:58:24,640 --> 00:58:27,520
when we issued the original scale and

1204
00:58:27,520 --> 00:58:29,520
that was for the 12 inch line the

1205
00:58:29,520 --> 00:58:31,040
elevated tank

1206
00:58:31,040 --> 00:58:34,880
>> right the booster station that right um

1207
00:58:34,880 --> 00:58:37,119
I I can't say that we probably

1208
00:58:37,119 --> 00:58:39,760
explicitly sat here as a council or the

1209
00:58:39,760 --> 00:58:42,000
council at that time said hey be

1210
00:58:42,000 --> 00:58:43,280
prepared your rates are going to

1211
00:58:43,280 --> 00:58:44,880
increase because of this like normally

1212
00:58:44,880 --> 00:58:47,040
that doesn't happen we didn't I know for

1213
00:58:47,040 --> 00:58:49,520
a fact we didn't do that with the de

1214
00:58:49,520 --> 00:58:52,400
just issue but I think it's uh We we

1215
00:58:52,400 --> 00:58:54,960
notice that we send out notifications

1216
00:58:54,960 --> 00:58:57,040
send out you know we have a you know

1217
00:58:57,040 --> 00:58:59,440
that hey we're issuing these projects

1218
00:58:59,440 --> 00:59:01,839
this debt is being issued it's kind of a

1219
00:59:01,839 --> 00:59:03,520
>> right and that's why we took out bonds.

1220
00:59:03,520 --> 00:59:04,319
>> Yeah I mean

1221
00:59:04,319 --> 00:59:06,880
>> but the bonds were not going to be t

1222
00:59:06,880 --> 00:59:09,440
they weren't earmarked to be paid by the

1223
00:59:09,440 --> 00:59:10,799
utility bills

1224
00:59:10,799 --> 00:59:11,200
>> but

1225
00:59:11,200 --> 00:59:13,760
>> so let me let me just hold on and just

1226
00:59:13,760 --> 00:59:15,200
so we can go ahead and take care of this

1227
00:59:15,200 --> 00:59:17,760
stuff uh because we got to do that. So,

1228
00:59:17,760 --> 00:59:21,359
just an example, here's the table.

1229
00:59:21,359 --> 00:59:24,240
For years and years and years and years,

1230
00:59:24,240 --> 00:59:28,720
water-wise, we've been down here.

1231
00:59:28,720 --> 00:59:30,799
>> The city has been covering the gap from

1232
00:59:30,799 --> 00:59:31,520
here to here,

1233
00:59:31,520 --> 00:59:33,119
>> right now. We need to make up for that.

1234
00:59:33,119 --> 00:59:34,960
That's that's that's without being said.

1235
00:59:34,960 --> 00:59:35,280
>> Yeah.

1236
00:59:35,280 --> 00:59:36,559
>> We have to make up for that.

1237
00:59:36,559 --> 00:59:40,799
>> So, all those that we've been there. So,

1238
00:59:40,799 --> 00:59:43,839
two of these projects directly fall into

1239
00:59:43,839 --> 00:59:46,799
that being able to do that. the rates

1240
00:59:46,799 --> 00:59:48,799
that we were charging and that we've

1241
00:59:48,799 --> 00:59:50,880
been here in a sense where the council

1242
00:59:50,880 --> 00:59:53,760
said, "Well, we don't want to burden the

1243
00:59:53,760 --> 00:59:56,559
folks and we stayed down here." The next

1244
00:59:56,559 --> 00:59:58,480
thing that came up was, "Well, we don't

1245
00:59:58,480 --> 01:00:00,000
know how much of a gap it is. Let's

1246
01:00:00,000 --> 01:00:01,680
figure that one out before we decide

1247
01:00:01,680 --> 01:00:03,599
where the line is and we got to start

1248
01:00:03,599 --> 01:00:06,400
going above it." So, for years and

1249
01:00:06,400 --> 01:00:08,640
years, we've been down here and we've

1250
01:00:08,640 --> 01:00:12,000
never elevated ourselves. So technically

1251
01:00:12,000 --> 01:00:14,960
some of this this CO is things that we

1252
01:00:14,960 --> 01:00:17,040
should have done down here. We should

1253
01:00:17,040 --> 01:00:19,040
have actually if if we would have

1254
01:00:19,040 --> 01:00:22,799
increased our rates at at this timeline

1255
01:00:22,799 --> 01:00:26,640
we would have never had the cos

1256
01:00:26,640 --> 01:00:27,680
>> because it would have been increasing

1257
01:00:27,680 --> 01:00:29,359
year

1258
01:00:29,359 --> 01:00:38,470
but I mean I'll express it as finance

1259
01:00:38,480 --> 01:00:40,160
» you're

1260
01:00:40,160 --> 01:00:43,920
coming these meetings for 27 years

1261
01:00:43,920 --> 01:00:47,280
>> and u I've heard this,

1262
01:00:47,280 --> 01:00:49,680
you know, over and over again that we

1263
01:00:49,680 --> 01:00:53,119
need to increase our rates and uh and

1264
01:00:53,119 --> 01:00:55,440
then normally we we don't ever go along

1265
01:00:55,440 --> 01:00:58,079
with whatever whatever company. That's

1266
01:00:58,079 --> 01:01:02,480
just my opinion as a citizen, not but we don't go along with whatever we we

1267
01:01:02,480 --> 01:01:04,480
say, well, we're going to do a little of

1268
01:01:04,480 --> 01:01:06,079
and then several years later, we're

1269
01:01:06,079 --> 01:01:08,319
right back in the same boat. I just I

1270
01:01:08,319 --> 01:01:10,880
mean, I could pretty much give this same

1271
01:01:10,880 --> 01:01:12,640
thing without his numbers for what he's

1272
01:01:12,640 --> 01:01:14,720
talking about. So I So like as the mayor

1273
01:01:14,720 --> 01:01:18,079
was saying, this has been ongoing.

1274
01:01:18,079 --> 01:01:20,400
It's it's it's just never really we kind

1275
01:01:20,400 --> 01:01:23,200
of not y'all, not us. You've done it to

1276
01:01:23,200 --> 01:01:24,720
protect people like me, the people

1277
01:01:24,720 --> 01:01:27,440
paying the bill, but it's really we're

1278
01:01:27,440 --> 01:01:29,839
just being kicking the can down the

1279
01:01:29,839 --> 01:01:32,160
road. That's just my input is, you know,

1280
01:01:32,160 --> 01:01:33,280
from being here and listening.

1281
01:01:33,280 --> 01:01:34,640
>> Makes sense. I mean, he's the president,

1282
01:01:34,640 --> 01:01:36,000
right?

1283
01:01:36,000 --> 01:01:37,520
>> Yeah. But the resident should not be

1284
01:01:37,520 --> 01:01:39,440
paying for future grill. That's that's

1285
01:01:39,440 --> 01:01:41,599
what I'm getting at.

1286
01:01:41,599 --> 01:01:43,440
and and and I don't know if it's legal

1287
01:01:43,440 --> 01:01:46,319
or not if we can actually charge a a

1288
01:01:46,319 --> 01:01:49,200
current utility customer for future

1289
01:01:49,200 --> 01:01:49,599
growth.

1290
01:01:49,599 --> 01:01:51,119
>> So, let me let me ask I'm going to turn

1291
01:01:51,119 --> 01:01:52,559
it around. I'm going to put my other hat

1292
01:01:52,559 --> 01:01:57,599
on. So, how can the city go back and ask

1293
01:01:57,599 --> 01:02:00,079
for the residents to cover all this when

1294
01:02:00,079 --> 01:02:02,160
they never made?

1295
01:02:02,160 --> 01:02:02,960
>> Yeah, but where

1296
01:02:02,960 --> 01:02:04,480
>> I mean that that's that that was my

1297
01:02:04,480 --> 01:02:06,640
original question based on and M where

1298
01:02:06,640 --> 01:02:08,799
are we at? And then we need to also go

1299
01:02:08,799 --> 01:02:11,599
over like at least 5% or whatever the

1300
01:02:11,599 --> 01:02:13,680
percentage is go over that to make sure

1301
01:02:13,680 --> 01:02:15,839
we have enough money to cover current

1302
01:02:15,839 --> 01:02:16,480
infrastructure.

1303
01:02:16,480 --> 01:02:18,640
>> I guess my my question would be for that

1304
01:02:18,640 --> 01:02:20,880
debt payment right for the principal and

1305
01:02:20,880 --> 01:02:23,680
interest on those cos like next year and

1306
01:02:23,680 --> 01:02:27,760
we were going to get into it with the water but I mean that's even next

1307
01:02:27,760 --> 01:02:29,599
year alone it's just shy of a million

1308
01:02:29,599 --> 01:02:31,839
dollar payment for princip and what I'm

1309
01:02:31,839 --> 01:02:33,839
getting at pay that out of

1310
01:02:33,839 --> 01:02:36,160
>> this increase is not uncalled for. Yeah.

1311
01:02:36,160 --> 01:02:39,359
>> Okay. And and no in no time did I say we

1312
01:02:39,359 --> 01:02:41,200
should not do this increase. Yeah. What

1313
01:02:41,200 --> 01:02:44,240
I'm getting at is that this utility rate

1314
01:02:44,240 --> 01:02:46,400
increase should be based on what the

1315
01:02:46,400 --> 01:02:47,760
mayor is saying,

1316
01:02:47,760 --> 01:02:49,599
>> based on what our our future

1317
01:02:49,599 --> 01:02:51,760
infrastructure, current infrastructure

1318
01:02:51,760 --> 01:02:54,640
needs to be able to maintain it, but it

1319
01:02:54,640 --> 01:02:56,880
should not include paying debt. That's

1320
01:02:56,880 --> 01:02:59,839
something that we took out in order to

1321
01:02:59,839 --> 01:03:02,000
bring in these new subdivisions. But

1322
01:03:02,000 --> 01:03:02,400
they're

1323
01:03:02,400 --> 01:03:04,400
>> and we never told the the the general

1324
01:03:04,400 --> 01:03:06,400
public that your utility bill is going

1325
01:03:06,400 --> 01:03:07,839
to go up to be paying for these.

1326
01:03:07,839 --> 01:03:09,040
>> But our current customers are going to

1327
01:03:09,040 --> 01:03:10,720
be benefiting off of the new

1328
01:03:10,720 --> 01:03:12,960
>> they won't and everything.

1329
01:03:12,960 --> 01:03:14,400
>> The thing is they won't benefit from

1330
01:03:14,400 --> 01:03:14,799
that.

1331
01:03:14,799 --> 01:03:16,160
>> It's not going to the same sewer. It's

1332
01:03:16,160 --> 01:03:18,000
all going the booster pumps. They're

1333
01:03:18,000 --> 01:03:20,240
going to be more water.

1334
01:03:20,240 --> 01:03:21,920
>> It's actually going to handle the the

1335
01:03:21,920 --> 01:03:23,920
additional customer population.

1336
01:03:23,920 --> 01:03:25,359
>> I know. So So they're going to be

1337
01:03:25,359 --> 01:03:27,200
benefiting off the same thing. So yes,

1338
01:03:27,200 --> 01:03:29,680
they should have to

1339
01:03:29,680 --> 01:03:32,559
pay for, you know, bigger and better

1340
01:03:32,559 --> 01:03:34,319
growth of vital because they're going to

1341
01:03:34,319 --> 01:03:36,160
be benefiting off the same stuff that

1342
01:03:36,160 --> 01:03:37,599
everybody else is. If you're a new

1343
01:03:37,599 --> 01:03:39,440
customer or not or a new resident or

1344
01:03:39,440 --> 01:03:41,119
not, everybody's benefiting off the same

1345
01:03:41,119 --> 01:03:44,319
thing. So it it all falls into one like

1346
01:03:44,319 --> 01:03:47,039
one big hat because everybody is g

1347
01:03:47,039 --> 01:03:48,559
again, everybody's benefiting off the

1348
01:03:48,559 --> 01:03:50,480
same. If we put a new booster plant, if

1349
01:03:50,480 --> 01:03:52,640
we put a bigger sewer, you know, it's

1350
01:03:52,640 --> 01:03:54,240
not, oh, the old customer sewer is going

1351
01:03:54,240 --> 01:03:55,440
to go to the left and then who's going

1352
01:03:55,440 --> 01:03:57,119
to go to the right. It all goes to the

1353
01:03:57,119 --> 01:03:58,160
middle. So, they're going to be

1354
01:03:58,160 --> 01:04:00,000
benefiting off of that.

1355
01:04:00,000 --> 01:04:02,400
>> Isn't it implied by calling yourself a

1356
01:04:02,400 --> 01:04:06,480
city resident that uh any bills like

1357
01:04:06,480 --> 01:04:09,200
this you pay are for the general good

1358
01:04:09,200 --> 01:04:09,839
>> of everybody,

1359
01:04:09,839 --> 01:04:12,240
>> both now and in the foreseeable future.

1360
01:04:12,240 --> 01:04:13,039
I mean, what is our

1361
01:04:13,039 --> 01:04:15,440
>> we if we do nothing and we need to put

1362
01:04:15,440 --> 01:04:18,960
in a new water tower all of a sudden and

1363
01:04:18,960 --> 01:04:20,160
in the future it's going to be $8

1364
01:04:20,160 --> 01:04:21,760
million

1365
01:04:21,760 --> 01:04:23,200
our model.

1366
01:04:23,200 --> 01:04:24,160
>> So you want to grow, right?

1367
01:04:24,160 --> 01:04:26,079
>> Yeah, we're on the grow. So I think it's

1368
01:04:26,079 --> 01:04:28,480
implied in being a resident that

1369
01:04:28,480 --> 01:04:30,799
residents help with the growth and

1370
01:04:30,799 --> 01:04:32,720
development of the city

1371
01:04:32,720 --> 01:04:34,720
>> and and we have more we have more

1372
01:04:34,720 --> 01:04:36,880
commercials coming in, right? We have

1373
01:04:36,880 --> 01:04:38,000
that's going to help also

1374
01:04:38,000 --> 01:04:40,400
>> the developers do pay their portions,

1375
01:04:40,400 --> 01:04:43,119
>> right? And they should only pay I mean

1376
01:04:43,119 --> 01:04:45,200
it's only going to pay for that specific

1377
01:04:45,200 --> 01:05:02,710
impact you know for that elequ

1378
01:05:02,720 --> 01:05:04,160
» if you're putting the soap box there I

1379
01:05:04,160 --> 01:05:04,559
will stand on

1380
01:05:04,559 --> 01:05:08,000
>> you go ahead former finance director

1381
01:05:08,000 --> 01:05:09,039
>> but see I don't know where you stand

1382
01:05:09,039 --> 01:05:10,319
with your engineers and your impact

1383
01:05:10,319 --> 01:05:12,160
process. Of course, Zach had to listen

1384
01:05:12,160 --> 01:05:14,240
to this at a conference and he had to

1385
01:05:14,240 --> 01:05:16,240
listen to it at a conference call, but

1386
01:05:16,240 --> 01:05:18,960
I'm going to just quickly I say educate

1387
01:05:18,960 --> 01:05:20,000
you because I don't know if you know the

1388
01:05:20,000 --> 01:05:22,160
depth of the impact fees, but if you're

1389
01:05:22,160 --> 01:05:24,400
looking at impact fees and if you as a

1390
01:05:24,400 --> 01:05:26,079
council say growth should pay for

1391
01:05:26,079 --> 01:05:28,160
growth, impact fees are governed by

1392
01:05:28,160 --> 01:05:30,480
local government code chapter 395. In

1393
01:05:30,480 --> 01:05:32,000
that it says you need an engineer, not

1394
01:05:32,000 --> 01:05:33,359
Matthew, not New Jen because I'm not

1395
01:05:33,359 --> 01:05:35,119
one, to give you land use assumptions

1396
01:05:35,119 --> 01:05:37,200
and CIP, right? You stack them up

1397
01:05:37,200 --> 01:05:38,400
differently. You've got a numerator of

1398
01:05:38,400 --> 01:05:42,079
CIP over units of growth. It then says

1399
01:05:42,079 --> 01:05:44,000
you have to give them a credit equal to

1400
01:05:44,000 --> 01:05:47,039
50% of that. So inherently the statute

1401
01:05:47,039 --> 01:05:50,480
says growth can't pay for all of growth.

1402
01:05:50,480 --> 01:05:52,799
However, and this is not a purposeful

1403
01:05:52,799 --> 01:05:56,000
commercial, but one thing I do in Austin

1404
01:05:56,000 --> 01:05:57,440
and Fort Worth and McKenna and a number

1405
01:05:57,440 --> 01:05:59,200
of other communities is a credit

1406
01:05:59,200 --> 01:06:02,160
calculation. And the credit calculation

1407
01:06:02,160 --> 01:06:05,440
in statute says you can do 50% of their

1408
01:06:05,440 --> 01:06:08,079
cost, the growth cost, or you can do a

1409
01:06:08,079 --> 01:06:10,240
financial calculation that allows you to

1410
01:06:10,240 --> 01:06:14,480
achieve better than 50% from growth. So

1411
01:06:14,480 --> 01:06:16,079
in all my communities that are growing

1412
01:06:16,079 --> 01:06:18,799
and blowing and have the sentiment that

1413
01:06:18,799 --> 01:06:20,079
I've heard from you,

1414
01:06:20,079 --> 01:06:21,599
>> better than 50%.

1415
01:06:21,599 --> 01:06:24,240
>> Well, actually just the opposite because

1416
01:06:24,240 --> 01:06:27,359
the the 50% method cuts you at half. A

1417
01:06:27,359 --> 01:06:29,680
finance credit calc usually lands you at

1418
01:06:29,680 --> 01:06:33,520
growth paying for more like 60 to 75%.

1419
01:06:33,520 --> 01:06:35,440
Right? And so didn't mean it to be a

1420
01:06:35,440 --> 01:06:36,960
commercial, but I want you to know in

1421
01:06:36,960 --> 01:06:39,599
the statute, you're not limited to a 50%

1422
01:06:39,599 --> 01:06:42,160
of the impact fee. That's one of two

1423
01:06:42,160 --> 01:06:44,400
credit methodologies.

1424
01:06:44,400 --> 01:06:46,559
And should you want during that study to

1425
01:06:46,559 --> 01:06:48,240
look at a credit calculation, we can

1426
01:06:48,240 --> 01:06:50,000
bolt on to most any engineer and do

1427
01:06:50,000 --> 01:06:53,920
that. Um, and without knowing everything

1428
01:06:53,920 --> 01:06:56,559
you're doing, are you doing roadway?

1429
01:06:56,559 --> 01:06:58,640
So, just water and waste water. So, I

1430
01:06:58,640 --> 01:07:01,359
could do that probably for $25,000. Come

1431
01:07:01,359 --> 01:07:02,960
present on it.

1432
01:07:02,960 --> 01:07:05,039
>> And honestly, it pays for itself in the

1433
01:07:05,039 --> 01:07:07,680
first 25 homes.

1434
01:07:07,680 --> 01:07:10,319
Um, so again, it it sounds like a

1435
01:07:10,319 --> 01:07:12,000
commercial. You have to update every 5

1436
01:07:12,000 --> 01:07:14,160
years, but I have so many communities

1437
01:07:14,160 --> 01:07:15,599
and so many councils that don't

1438
01:07:15,599 --> 01:07:17,200
understand that part of the statute that

1439
01:07:17,200 --> 01:07:19,760
they blindly accept 50% when they could

1440
01:07:19,760 --> 01:07:21,200
be getting near twothirds of the cost

1441
01:07:21,200 --> 01:07:23,440
paid by growth. So, thank you. Sorry,

1442
01:07:23,440 --> 01:07:26,400
stepping down. Um, we presented this

1443
01:07:26,400 --> 01:07:27,599
soap box went away.

1444
01:07:27,599 --> 01:07:28,960
>> Yeah. Yeah,

1445
01:07:28,960 --> 01:07:30,160
>> that soap box is taken away.

1446
01:07:30,160 --> 01:07:31,920
>> Sorry. Sorry. Kicked it.

1447
01:07:31,920 --> 01:07:34,319
>> So, I know we have a lot and we got

1448
01:07:34,319 --> 01:07:38,640
different things. Um, let's go ahead and save some of the thoughts and let's

1449
01:07:38,640 --> 01:07:39,920
go ahead and continue on and let's

1450
01:07:39,920 --> 01:07:41,680
finish up with the other stuff. Sure.

1451
01:07:41,680 --> 01:07:42,880
So, we can go ahead and

1452
01:07:42,880 --> 01:07:44,799
>> So, he's going to go back right and

1453
01:07:44,799 --> 01:07:46,319
you're going to bring us some more info

1454
01:07:46,319 --> 01:07:49,760
on the wastewater on the he's talking

1455
01:07:49,760 --> 01:07:51,280
about and stuff. So, we'll come back to

1456
01:07:51,280 --> 01:07:51,520
this.

1457
01:07:51,520 --> 01:07:53,039
>> We need some direction. Obviously, we

1458
01:07:53,039 --> 01:07:54,240
need to make some decisions pretty

1459
01:07:54,240 --> 01:07:56,240
quickly to meet some of the, you know,

1460
01:07:56,240 --> 01:07:58,480
the statuto requirements for public

1461
01:07:58,480 --> 01:07:59,599
hearing, that kind of stuff.

1462
01:07:59,599 --> 01:08:01,520
>> So, if he can get what what Councilman

1463
01:08:01,520 --> 01:08:03,200
Rodriguez is asking for, right?

1464
01:08:03,200 --> 01:08:04,559
>> Specifically, the things that y'all are

1465
01:08:04,559 --> 01:08:06,720
wanting to see,

1466
01:08:06,720 --> 01:08:08,880
you know, be happy to to get with

1467
01:08:08,880 --> 01:08:10,400
Matthew.

1468
01:08:10,400 --> 01:08:12,319
Obviously, it's a little cheaper if I go

1469
01:08:12,319 --> 01:08:14,160
ahead and he gives me the presentation

1470
01:08:14,160 --> 01:08:16,400
next time and I can present that to

1471
01:08:16,400 --> 01:08:19,279
y'all or whatever. We can save some cost

1472
01:08:19,279 --> 01:08:19,759
next time.

1473
01:08:19,759 --> 01:08:21,600
>> I'm good. I'm good for that, you know,

1474
01:08:21,600 --> 01:08:23,600
and think, you know, if y'all are

1475
01:08:23,600 --> 01:08:25,279
comfortable with that after we get some

1476
01:08:25,279 --> 01:08:26,560
of that from him. But

1477
01:08:26,560 --> 01:08:28,319
>> the timeline that we actually have to go

1478
01:08:28,319 --> 01:08:30,080
ahead and implement this,

1479
01:08:30,080 --> 01:08:32,159
>> we we're still okay. Uh it probably

1480
01:08:32,159 --> 01:08:35,520
would be um uh we might have to push it

1481
01:08:35,520 --> 01:08:37,279
to the the second one in September, but

1482
01:08:37,279 --> 01:08:39,279
it might come right after the budget,

1483
01:08:39,279 --> 01:08:42,000
you know, which is okay. So hopefully

1484
01:08:42,000 --> 01:08:44,400
>> the decision that you're looking for for

1485
01:08:44,400 --> 01:08:46,640
this is whether or not we want to go

1486
01:08:46,640 --> 01:08:50,719
ahead and do the proposed. I I mean, we definitely want to see if there's any

1487
01:08:50,719 --> 01:08:52,400
additional information that y'all need

1488
01:08:52,400 --> 01:08:54,640
to be able to feel comfortable with the

1489
01:08:54,640 --> 01:08:57,120
rate that's being proposed uh on the

1490
01:08:57,120 --> 01:08:59,839
water and wastewater. Uh if y'all are

1491
01:08:59,839 --> 01:09:01,279
comfortable with that or if you'll need

1492
01:09:01,279 --> 01:09:03,279
any more information so Matthew and his

1493
01:09:03,279 --> 01:09:05,440
team can process that. If not, then

1494
01:09:05,440 --> 01:09:06,799
that's obviously what we're going to

1495
01:09:06,799 --> 01:09:09,279
proceed with and and we'll start working

1496
01:09:09,279 --> 01:09:14,239
on what we do. That's so I'm I'm gonna

1497
01:09:14,239 --> 01:09:15,359
again get him to speak with me. I know

1498
01:09:15,359 --> 01:09:17,920
he asked for some more info, but with

1499
01:09:17,920 --> 01:09:20,400
seeing what he's presented and, you

1500
01:09:20,400 --> 01:09:22,080
know, your example of the bar and being

1501
01:09:22,080 --> 01:09:24,560
below, I I feel that we need to go ahead

1502
01:09:24,560 --> 01:09:26,560
and make a decision to go ahead and

1503
01:09:26,560 --> 01:09:29,359
increase it now versus waiting for

1504
01:09:29,359 --> 01:09:32,560
another two weeks and then trying to get

1505
01:09:32,560 --> 01:09:35,040
it in and rushing and trying to put it

1506
01:09:35,040 --> 01:09:36,960
out for the public to hear. I I I think

1507
01:09:36,960 --> 01:09:40,880
we need to do it now. I mean, it it $18

1508
01:09:40,880 --> 01:09:42,640
for some people, it's a lot of money,

1509
01:09:42,640 --> 01:09:44,400
right? We understand that. But the city

1510
01:09:44,400 --> 01:09:48,239
can't keep taking all of that burden on

1511
01:09:48,239 --> 01:09:51,120
or we're just going to keep falling and falling and never be able to

1512
01:09:51,120 --> 01:09:54,000
catch up or get in.

1513
01:09:54,000 --> 01:09:55,679
>> So,

1514
01:09:55,679 --> 01:09:58,719
uh, special. So, this is So, this is not

1515
01:09:58,719 --> 01:10:00,080
considered a workshop.

1516
01:10:00,080 --> 01:10:02,640
>> Yeah, just I've seen

1517
01:10:02,640 --> 01:10:04,880
>> Yeah. Well, it's not it's they won't

1518
01:10:04,880 --> 01:10:06,880
have it listed as a as a workshop. It's

1519
01:10:06,880 --> 01:10:09,679
listed as a special meeting, right? So,

1520
01:10:09,679 --> 01:10:12,560
I think with that we do need a vote. I

1521
01:10:12,560 --> 01:10:14,000
think we need to go ahead and vote.

1522
01:10:14,000 --> 01:10:15,520
>> So then would I make a motion to go

1523
01:10:15,520 --> 01:10:18,719
ahead and approve the rate increase for

1524
01:10:18,719 --> 01:10:21,679
the new fiscal year for the what is it?

1525
01:10:21,679 --> 01:10:23,600
>> Water.

1526
01:10:23,600 --> 01:10:25,280
>> Yeah, I would say I would say go ahead

1527
01:10:25,280 --> 01:10:27,360
and direct staff because obviously we'll

1528
01:10:27,360 --> 01:10:29,520
have to actually have

1529
01:10:29,520 --> 01:10:32,400
all that kind of stuff. So I would just

1530
01:10:32,400 --> 01:10:34,239
>> go ahead and Yeah, direct staff to go

1531
01:10:34,239 --> 01:10:35,760
ahead and go with the proposed and go

1532
01:10:35,760 --> 01:10:38,400
ahead and mention it. It's a 33.08.

1533
01:10:38,400 --> 01:10:40,320
That's what you're actually looking for.

1534
01:10:40,320 --> 01:10:41,199
uh be

1535
01:10:41,199 --> 01:10:43,120
>> so when he comes back it will resemble

1536
01:10:43,120 --> 01:10:45,199
right kind of more the the nitty-gritty

1537
01:10:45,199 --> 01:10:47,440
the actual charges by type and class.

1538
01:10:47,440 --> 01:10:48,400
>> Okay. Yes sir.

1539
01:10:48,400 --> 01:10:50,000
>> Okay. I just want to make sure.

1540
01:10:50,000 --> 01:10:50,480
>> Yeah.

1541
01:10:50,480 --> 01:10:53,199
>> So you'll have you'll have all different

1542
01:10:53,199 --> 01:10:55,040
rates based on the meter size.

1543
01:10:55,040 --> 01:10:56,000
>> Okay. Got it. Got it.

1544
01:10:56,000 --> 01:10:59,360
>> I would say based on the proposal.

1545
01:10:59,360 --> 01:11:01,280
>> Yeah. Proposed. So go ahead and direct

1546
01:11:01,280 --> 01:11:03,360
staff to go ahead and

1547
01:11:03,360 --> 01:11:05,679
>> start working on what needs to get done

1548
01:11:05,679 --> 01:11:08,000
>> for the rate proposal that was presented

1549
01:11:08,000 --> 01:11:08,400
tonight.

1550
01:11:08,400 --> 01:11:09,920
>> Residential and commercial. residential

1551
01:11:09,920 --> 01:11:12,320
and commercial for the 12th of August.

1552
01:11:12,320 --> 01:11:14,960
>> So if we approve it, there's no way we

1553
01:11:14,960 --> 01:11:19,120
can go lower on it. Um we can when we

1554
01:11:19,120 --> 01:11:20,080
present it.

1555
01:11:20,080 --> 01:11:21,760
>> So let me let me hold off hold up right

1556
01:11:21,760 --> 01:11:23,280
now. We'll go into discussion. Do I have

1557
01:11:23,280 --> 01:11:24,640
another motion? Do I have a second

1558
01:11:24,640 --> 01:11:25,520
motion on that?

1559
01:11:25,520 --> 01:11:28,239
>> I can do it. You said fourth of August

1560
01:11:28,239 --> 01:11:30,000
12th.

1561
01:11:30,000 --> 01:11:31,520
I was presented today at the 12th of

1562
01:11:31,520 --> 01:11:32,960
August.

1563
01:11:32,960 --> 01:11:34,880
>> Okay. So I got a motion now discussion.

1564
01:11:34,880 --> 01:11:36,159
Here we go. Go ahead.

1565
01:11:36,159 --> 01:11:38,000
>> Oh yeah. I'm just saying if if they

1566
01:11:38,000 --> 01:11:45,760
approve it, but we able to just say for some reason it's too much, we go uh

1567
01:11:45,760 --> 01:11:49,920
so you say the 33, we do 30. Can it

1568
01:11:49,920 --> 01:11:54,000
still be u so when when I when I what

1569
01:11:54,000 --> 01:11:55,840
I'm going to do based on that if that is

1570
01:11:55,840 --> 01:11:58,480
the vote ultimately if if the majority

1571
01:11:58,480 --> 01:12:01,040
passes that direction tonight, I'm going

1572
01:12:01,040 --> 01:12:04,000
to start working on getting it set for

1573
01:12:04,000 --> 01:12:06,480
that proposal and bring it forth. And if

1574
01:12:06,480 --> 01:12:08,480
you all choose at that time after you

1575
01:12:08,480 --> 01:12:10,239
know chewing it over and looking at you

1576
01:12:10,239 --> 01:12:12,640
think hey actually on second thought we

1577
01:12:12,640 --> 01:12:14,880
want to go down a little bit presented

1578
01:12:14,880 --> 01:12:17,760
at that time then that's when we need to knock that down

1579
01:12:17,760 --> 01:12:19,600
>> and and we also have the public hearings

1580
01:12:19,600 --> 01:12:20,000
>> correct

1581
01:12:20,000 --> 01:12:21,760
>> so we would have public hearings

1582
01:12:21,760 --> 01:12:22,800
involved with that.

1583
01:12:22,800 --> 01:12:25,199
>> So the current rate proposal increase is

1584
01:12:25,199 --> 01:12:26,480
35%.

1585
01:12:26,480 --> 01:12:29,910
>> Yes.

1586
01:12:29,920 --> 01:12:33,920
» Okay. Anything else for discussion?

1587
01:12:33,920 --> 01:12:38,470
Okay. All those in favor?

1588
01:12:38,480 --> 01:12:43,600
» One, two, three, four. Okay. Nace.

1589
01:12:43,600 --> 01:12:44,320
>> Hi.

1590
01:12:44,320 --> 01:12:47,600
>> Got it. Okay.

1591
01:12:47,600 --> 01:12:49,199
So, let's continue our work with that.

1592
01:12:49,199 --> 01:12:55,669
We'll take the next phase and uh

1593
01:12:55,679 --> 01:12:57,760
» thank you for your presentation, sir. Go

1594
01:12:57,760 --> 01:13:00,080
ahead and take the next

1595
01:13:00,080 --> 01:13:01,760
>> the next step. So, we can go ahead and

1596
01:13:01,760 --> 01:13:04,560
further do that. All right. Thank you,

1597
01:13:04,560 --> 01:13:05,040
sir.

1598
01:13:05,040 --> 01:13:05,600
>> Thank you very much.

1599
01:13:05,600 --> 01:13:07,440
>> Appreciate it. Please look at those

1600
01:13:07,440 --> 01:13:10,800
numbers so we can go ahead and get make

1601
01:13:10,800 --> 01:13:13,360
sure that we can take care of the uh the

1602
01:13:13,360 --> 01:13:16,960
uh Mr. Rodriguez's, you know, the the

1603
01:13:16,960 --> 01:13:17,840
proportional portion.

1604
01:13:17,840 --> 01:13:20,239
>> I'll follow if you're up on what we

1605
01:13:20,239 --> 01:13:20,800
need.

1606
01:13:20,800 --> 01:13:21,280
>> Yep.

1607
01:13:21,280 --> 01:13:21,679
>> Okay.

1608
01:13:21,679 --> 01:13:22,320
>> So much.

1609
01:13:22,320 --> 01:13:23,600
>> Appreciate that.

1610
01:13:23,600 --> 01:13:27,920
>> All right, Zach. Tech, here we go.

1611
01:13:27,920 --> 01:13:31,040
>> All right. Uh so the worksheet uh was

1612
01:13:31,040 --> 01:13:33,360
included uh on the dis there for y'all.

1613
01:13:33,360 --> 01:13:37,679
Uh this uh nice little packet here. Uh

1614
01:13:37,679 --> 01:13:40,159
it says 2026 tax rate calculation

1615
01:13:40,159 --> 01:13:42,000
worksheet. Uh I'm really just going to

1616
01:13:42,000 --> 01:13:45,920
call y'all's attention to the very back

1617
01:13:45,920 --> 01:13:50,560
um page which has uh Loretta Holly's uh

1618
01:13:50,560 --> 01:13:52,560
signature on the very back. So last last

1619
01:13:52,560 --> 01:13:57,120
page. Um so you'll see there uh that is

1620
01:13:57,120 --> 01:14:00,000
uh shows the no new revenue tax rate the

1621
01:14:00,000 --> 01:14:02,080
voter approval tax rate and the

1622
01:14:02,080 --> 01:14:08,950
dimminimous tax rate and then

1623
01:14:08,960 --> 01:14:12,800
she left this sheet uh as well maybe in

1624
01:14:12,800 --> 01:14:15,520
color maybe not I don't remember

1625
01:14:15,520 --> 01:14:18,080
>> maybe not yeah okay um and so that just

1626
01:14:18,080 --> 01:14:20,800
shows some additional uh breakdowns of

1627
01:14:20,800 --> 01:14:25,679
what that would look like Um so

1628
01:14:25,679 --> 01:14:30,239
um obviously the uh no new revenue rate

1629
01:14:30,239 --> 01:14:34,800
uh is slightly lower than our uh current

1630
01:14:34,800 --> 01:14:37,840
uh tax rate. Uh and then uh the voter

1631
01:14:37,840 --> 01:14:40,640
approval rate uh is obviously a little

1632
01:14:40,640 --> 01:14:45,360
bit higher um than that. um staff. Uh

1633
01:14:45,360 --> 01:14:47,360
just as we have in the last couple

1634
01:14:47,360 --> 01:14:50,719
years, we are recommending to take it um

1635
01:14:50,719 --> 01:14:54,719
up to uh just right below the voter

1636
01:14:54,719 --> 01:14:58,000
approval rate. Um so that way uh we're

1637
01:14:58,000 --> 01:15:00,400
not going over the voter approval rate.

1638
01:15:00,400 --> 01:15:03,920
Um but uh and that number is what is uh

1639
01:15:03,920 --> 01:15:06,640
currently been built in um to the

1640
01:15:06,640 --> 01:15:08,800
numbers uh within the the changes that

1641
01:15:08,800 --> 01:15:10,560
we've made on the the budget. So that

1642
01:15:10,560 --> 01:15:13,120
would be the uh 485

1643
01:15:13,120 --> 01:15:15,199
Um and that is shown on the

1644
01:15:15,199 --> 01:15:16,880
>> uh

1645
01:15:16,880 --> 01:15:17,440
total

1646
01:15:17,440 --> 01:15:18,000
>> approval

1647
01:15:18,000 --> 01:15:21,360
>> total tax rate here. Uh so the the voter

1648
01:15:21,360 --> 01:15:22,960
approval is

1649
01:15:22,960 --> 01:15:24,800
>> 485025.

1650
01:15:24,800 --> 01:15:26,960
So we're just taking that 025 off

1651
01:15:26,960 --> 01:15:28,000
basically.

1652
01:15:28,000 --> 01:15:28,480
>> Um

1653
01:15:28,480 --> 01:15:31,040
>> so 485.

1654
01:15:31,040 --> 01:15:33,920
>> Yeah.

1655
01:15:33,920 --> 01:15:36,400
>> Um the uh kind of just to go over some

1656
01:15:36,400 --> 01:15:38,719
other numbers on here uh on on the sheet

1657
01:15:38,719 --> 01:15:41,280
that um Ivonne had kind of produced for

1658
01:15:41,280 --> 01:15:43,199
y'all. uh the total taxable number at

1659
01:15:43,199 --> 01:15:46,400
the very top uh corner uh that is the

1660
01:15:46,400 --> 01:15:49,520
total certified value number that uh we

1661
01:15:49,520 --> 01:15:55,520
got from all three tax entities. Um and

1662
01:15:55,520 --> 01:15:58,560
uh then you'll see the the three uh

1663
01:15:58,560 --> 01:16:00,719
again the three current the no new

1664
01:16:00,719 --> 01:16:03,520
revenue the the voter approval rate uh

1665
01:16:03,520 --> 01:16:06,320
what the staff again is recommending and

1666
01:16:06,320 --> 01:16:08,400
then just some breakdowns on uh on some

1667
01:16:08,400 --> 01:16:10,480
home valuations. So, two, you know, on a

1668
01:16:10,480 --> 01:16:14,400
200,000, $250,000, a $300,000 um

1669
01:16:14,400 --> 01:16:18,239
valuation home, what those um rates

1670
01:16:18,239 --> 01:16:20,960
would look like for those uh homeowners

1671
01:16:20,960 --> 01:16:23,199
uh with those valuations. So, uh which

1672
01:16:23,199 --> 01:16:25,199
is something that um if y'all recall

1673
01:16:25,199 --> 01:16:29,520
last year, we had to the tax

1674
01:16:29,520 --> 01:16:31,920
uh code changed where we have to show

1675
01:16:31,920 --> 01:16:34,000
kind of like a taxpayer statement. Now

1676
01:16:34,000 --> 01:16:36,320
when we produce the agenda when we go

1677
01:16:36,320 --> 01:16:39,040
for budget uh next uh when we adopt the

1678
01:16:39,040 --> 01:16:40,960
budget uh next time we actually have to

1679
01:16:40,960 --> 01:16:42,640
put a taxpayer statement where it shows

1680
01:16:42,640 --> 01:16:45,600
how it would impact homeowners of a

1681
01:16:45,600 --> 01:16:47,440
certain thing. So this is very key

1682
01:16:47,440 --> 01:16:49,760
information uh to to produce out there

1683
01:16:49,760 --> 01:16:52,000
and and it also helps if you know

1684
01:16:52,000 --> 01:16:53,840
depending on which direction council

1685
01:16:53,840 --> 01:16:55,360
takes when you're talking to people if

1686
01:16:55,360 --> 01:16:57,920
you get asked too. So what that would

1687
01:16:57,920 --> 01:16:59,840
look like.

1688
01:16:59,840 --> 01:17:02,400
>> So I'm looking at both but I want to

1689
01:17:02,400 --> 01:17:05,280
make sure. So our current rate is that

1690
01:17:05,280 --> 01:17:05,679
one.

1691
01:17:05,679 --> 01:17:07,600
>> Our current rate is

1692
01:17:07,600 --> 01:17:08,320
>> 43

1693
01:17:08,320 --> 01:17:10,480
>> 439 439.

1694
01:17:10,480 --> 01:17:11,199
>> Okay.

1695
01:17:11,199 --> 01:17:14,000
>> The no new revenue uh is proposed at

1696
01:17:14,000 --> 01:17:16,320
409. So that would mean that if we

1697
01:17:16,320 --> 01:17:18,800
adopted that that's that's us saying

1698
01:17:18,800 --> 01:17:21,280
we're not bringing in any additional.

1699
01:17:21,280 --> 01:17:23,120
We're not bringing anything more or

1700
01:17:23,120 --> 01:17:24,400
less. We're just

1701
01:17:24,400 --> 01:17:26,320
>> So that's just so you get confused.

1702
01:17:26,320 --> 01:17:29,120
Don't look at the one that is up here on

1703
01:17:29,120 --> 01:17:31,120
the left. Look at down here for the

1704
01:17:31,120 --> 01:17:34,320
current. Okay. So it doesn't confuse you

1705
01:17:34,320 --> 01:17:38,320
with So it's literally So it's a

1706
01:17:38,320 --> 01:17:42,480
43 going to a 48, right?

1707
01:17:42,480 --> 01:17:44,320
>> That's what staff is recommending, but

1708
01:17:44,320 --> 01:17:47,199
of course that is totally up to council.

1709
01:17:47,199 --> 01:17:47,760
Um

1710
01:17:47,760 --> 01:17:49,199
>> well, if we go above that, it needs to

1711
01:17:49,199 --> 01:17:49,840
go out for

1712
01:17:49,840 --> 01:17:52,800
>> if you go above that, which obviously I

1713
01:17:52,800 --> 01:17:55,840
would never suggest to do, uh we'll need

1714
01:17:55,840 --> 01:17:59,199
to go out for a vote. Uh and then I

1715
01:17:59,199 --> 01:18:00,320
don't even know what that even that

1716
01:18:00,320 --> 01:18:02,640
looks like. I've never done that. So,

1717
01:18:02,640 --> 01:18:04,800
um, yeah, unless you're adopting the

1718
01:18:04,800 --> 01:18:06,320
dimminimous rate, which I don't even

1719
01:18:06,320 --> 01:18:07,600
know how to do that either. So, I

1720
01:18:07,600 --> 01:18:11,120
wouldn't even start that process.

1721
01:18:11,120 --> 01:18:13,360
I don't even want to talk about that.

1722
01:18:13,360 --> 01:18:16,320
That's uh Yeah. and you and they're

1723
01:18:16,320 --> 01:18:20,000
recommending this increase because

1724
01:18:20,000 --> 01:18:22,400
>> um well I mean we can get into the

1725
01:18:22,400 --> 01:18:24,960
budget but with the increases that we've

1726
01:18:24,960 --> 01:18:28,000
seen from expenses and things like that

1727
01:18:28,000 --> 01:18:29,679
I mean just overall we're just

1728
01:18:29,679 --> 01:18:31,280
suggesting

1729
01:18:31,280 --> 01:18:33,520
>> um you know we've

1730
01:18:33,520 --> 01:18:35,360
>> I know when we talked about the audit

1731
01:18:35,360 --> 01:18:37,280
this last year and I I know the auditor

1732
01:18:37,280 --> 01:18:38,960
had said you know the general fund took

1733
01:18:38,960 --> 01:18:42,560
a big hit right so um we're we're trying

1734
01:18:42,560 --> 01:18:44,320
to we're trying to replenish the general

1735
01:18:44,320 --> 01:18:46,159
fun. We're trying to get Yeah. I mean,

1736
01:18:46,159 --> 01:18:47,360
there's certain things we're we're

1737
01:18:47,360 --> 01:18:50,080
really trying to replenish, right? Um so

1738
01:18:50,080 --> 01:18:52,719
based on expenses, things are costing a

1739
01:18:52,719 --> 01:18:54,640
heck of a lot more nowadays, right? Um

1740
01:18:54,640 --> 01:18:56,320
and it sucks.

1741
01:18:56,320 --> 01:19:00,719
>> Um salaries. Uh so that's where we we

1742
01:19:00,719 --> 01:19:03,040
think, but um obviously it is a council

1743
01:19:03,040 --> 01:19:04,719
decision. It is something that you know,

1744
01:19:04,719 --> 01:19:07,360
but the other thing is is

1745
01:19:07,360 --> 01:19:09,360
what would happen is we need direction

1746
01:19:09,360 --> 01:19:11,920
to go ahead and propose a tax rate. I

1747
01:19:11,920 --> 01:19:14,719
always suggest going with you can

1748
01:19:14,719 --> 01:19:18,560
propose higher and come down. You can't

1749
01:19:18,560 --> 01:19:22,320
propose lower and go up. So again, kind

1750
01:19:22,320 --> 01:19:24,400
of to the last conversation, but this is

1751
01:19:24,400 --> 01:19:25,679
a little different. You can always

1752
01:19:25,679 --> 01:19:29,920
propose high and go down. So, um I I

1753
01:19:29,920 --> 01:19:33,520
would suggest go ahead and we propose

1754
01:19:33,520 --> 01:19:36,640
the voter approval and then if we come

1755
01:19:36,640 --> 01:19:39,199
to that tax rate setting hearing and we

1756
01:19:39,199 --> 01:19:41,120
s we think, okay, we're actually

1757
01:19:41,120 --> 01:19:42,239
comfortable with something a little

1758
01:19:42,239 --> 01:19:44,560
less, then we can adopt something a

1759
01:19:44,560 --> 01:19:47,920
little less. So,

1760
01:19:47,920 --> 01:19:50,239
>> so with that in mind, council,

1761
01:19:50,239 --> 01:19:51,600
>> do you need a motion on this?

1762
01:19:51,600 --> 01:19:54,239
>> Yes, sir. I'll make a motion that we set

1763
01:19:54,239 --> 01:20:02,310
the tax rate for a year at 0.485.

1764
01:20:02,320 --> 01:20:05,520
» I'll go ahead and may a second. Okay.

1765
01:20:05,520 --> 01:20:09,199
Any discussion on that? We need

1766
01:20:09,199 --> 01:20:12,800
>> this u additional revenues can be used

1767
01:20:12,800 --> 01:20:18,149
to pay off our debts.

1768
01:20:18,159 --> 01:20:20,239
» It goes at general fund. I mean it goes

1769
01:20:20,239 --> 01:20:22,640
I mean it's going to increase general

1770
01:20:22,640 --> 01:20:24,719
fund. Yeah.

1771
01:20:24,719 --> 01:20:27,280
>> A portion a portion is um

1772
01:20:27,280 --> 01:20:29,520
>> a portion of the tax rate is for INS and

1773
01:20:29,520 --> 01:20:31,760
a portion of it is general fund. So a

1774
01:20:31,760 --> 01:20:34,560
portion of the tax rate is debt service.

1775
01:20:34,560 --> 01:20:35,600
So yeah

1776
01:20:35,600 --> 01:20:37,679
>> right it is it is it is

1777
01:20:37,679 --> 01:20:39,440
>> yeah.

1778
01:20:39,440 --> 01:20:42,560
>> Okay. Any other questions? All those in

1779
01:20:42,560 --> 01:20:43,760
favor?

1780
01:20:43,760 --> 01:20:47,110
>> Any opposed?

1781
01:20:47,120 --> 01:20:51,280
Okay. Appreciate that council.

1782
01:20:51,280 --> 01:20:53,679
Okay. Uh let's go ahead and finish the

1783
01:20:53,679 --> 01:20:56,000
last one which is other department

1784
01:20:56,000 --> 01:20:59,750
changes.

1785
01:20:59,760 --> 01:21:02,560
» I'll be start off the conversation with

1786
01:21:02,560 --> 01:21:04,800
if she wants to jump in she can. Finance

1787
01:21:04,800 --> 01:21:05,840
lady.

1788
01:21:05,840 --> 01:21:10,000
>> Finance lady. Um so uh we're primarily

1789
01:21:10,000 --> 01:21:14,239
going to um talk the last three kind of

1790
01:21:14,239 --> 01:21:16,320
sheets here. the the summary and then

1791
01:21:16,320 --> 01:21:19,679
the two kind of other other sheets.

1792
01:21:19,679 --> 01:21:23,280
Yeah, y'alls are probably in maybe some

1793
01:21:23,280 --> 01:21:23,760
>> Got it.

1794
01:21:23,760 --> 01:21:27,679
>> Yeah. Um so again, we we went ahead and

1795
01:21:27,679 --> 01:21:32,640
plugged in the um the tax rate that 485

1796
01:21:32,640 --> 01:21:32,880
uh

1797
01:21:32,880 --> 01:21:33,760
>> for this right here

1798
01:21:33,760 --> 01:21:36,000
>> for this. So this is this is showing

1799
01:21:36,000 --> 01:21:41,440
that 485. Uh we have kept the the 3%

1800
01:21:41,440 --> 01:21:45,120
shown uh still in there.

1801
01:21:45,120 --> 01:21:50,400
um for the salaries. Um and uh

1802
01:21:50,400 --> 01:21:53,280
everything that we had agreed to at the

1803
01:21:53,280 --> 01:21:57,440
last budget meeting um we have stuck

1804
01:21:57,440 --> 01:22:00,560
with any of those unfunded requests were

1805
01:22:00,560 --> 01:22:02,960
not put in. Unless we talked about it

1806
01:22:02,960 --> 01:22:06,159
and agreed to it, we put it in. But

1807
01:22:06,159 --> 01:22:08,560
anything that was not discuss or you

1808
01:22:08,560 --> 01:22:10,880
know was not agreed to or still may

1809
01:22:10,880 --> 01:22:14,080
remained unfunded we we did not put in.

1810
01:22:14,080 --> 01:22:16,000
So generally where that kind of leaves

1811
01:22:16,000 --> 01:22:23,920
you um I'll kind of walk through. So the FY 2627 budget line item or column

1812
01:22:23,920 --> 01:22:25,760
is where I'm going to live on that

1813
01:22:25,760 --> 01:22:29,199
summary page. Uh so your your difference

1814
01:22:29,199 --> 01:22:31,040
in your general fund which again is

1815
01:22:31,040 --> 01:22:32,320
going to make up most of your

1816
01:22:32,320 --> 01:22:33,760
departments. It's your admin, your

1817
01:22:33,760 --> 01:22:35,920
court, police department, parks, the

1818
01:22:35,920 --> 01:22:38,159
newly created public works department,

1819
01:22:38,159 --> 01:22:40,159
animal control, library, community

1820
01:22:40,159 --> 01:22:43,440
center, and um obviously city council.

1821
01:22:43,440 --> 01:22:46,960
Um so based on expenses and projected

1822
01:22:46,960 --> 01:22:51,679
revenues, we are projecting a um a

1823
01:22:51,679 --> 01:22:55,760
positive balance of 321,000.

1824
01:22:55,760 --> 01:22:59,120
So in the positive, which is great. So,

1825
01:22:59,120 --> 01:23:01,199
uh, especially again given where we were

1826
01:23:01,199 --> 01:23:02,880
last year, we expended a lot of money

1827
01:23:02,880 --> 01:23:04,880
out of the general fund and took our

1828
01:23:04,880 --> 01:23:06,800
fund balance down quite considerably.

1829
01:23:06,800 --> 01:23:09,920
So, that's that's a a huge positive.

1830
01:23:09,920 --> 01:23:14,000
Um, debt service, uh, you see there the,

1831
01:23:14,000 --> 01:23:16,080
uh, revenue and expense, a little bit of

1832
01:23:16,080 --> 01:23:20,080
a positive there as well. Hotel, motel,

1833
01:23:20,080 --> 01:23:23,920
uh, even uh, and then we get into kind

1834
01:23:23,920 --> 01:23:26,239
of where we have issues.

1835
01:23:26,239 --> 01:23:28,480
Uh and you know it kind of leads from

1836
01:23:28,480 --> 01:23:30,480
our last conversation. Obviously we when

1837
01:23:30,480 --> 01:23:33,440
it comes to utility um but you have your

1838
01:23:33,440 --> 01:23:36,560
utility fund uh and your sewer fund.

1839
01:23:36,560 --> 01:23:38,400
is doing pretty well.

1840
01:23:38,400 --> 01:23:41,040
Our sewer has always done fairly well.

1841
01:23:41,040 --> 01:23:44,159
Um the expenses stay pretty light

1842
01:23:44,159 --> 01:23:46,800
normally in our sewer. Uh so we are in

1843
01:23:46,800 --> 01:23:49,600
the positive in sewer at 280 or at least

1844
01:23:49,600 --> 01:23:53,360
what we're we're projecting. Um, but our

1845
01:23:53,360 --> 01:23:55,920
utility fund and honestly the largest

1846
01:23:55,920 --> 01:23:59,520
percentage of where that uh in the red

1847
01:23:59,520 --> 01:24:02,000
is coming from is

1848
01:24:02,000 --> 01:24:04,080
that close to a million dollar payment

1849
01:24:04,080 --> 01:24:08,000
from the uh the bond. So we're in the

1850
01:24:08,000 --> 01:24:11,120
whole $1.6 $6 million in

1851
01:24:11,120 --> 01:24:11,920
>> for the CO

1852
01:24:11,920 --> 01:24:12,800
>> water.

1853
01:24:12,800 --> 01:24:14,639
>> And most of that, obviously, a million

1854
01:24:14,639 --> 01:24:17,600
of that is, you know, from the CO

1855
01:24:17,600 --> 01:24:21,840
>> payments uh from uh the principal and

1856
01:24:21,840 --> 01:24:25,360
the interest. Um Ivon and I have

1857
01:24:25,360 --> 01:24:26,639
scratched our heads. We don't really

1858
01:24:26,639 --> 01:24:31,440
know, we don't know what to do. Um, we

1859
01:24:31,440 --> 01:24:35,040
provided both the water fund and the the

1860
01:24:35,040 --> 01:24:37,040
sewer fund and that's what those other

1861
01:24:37,040 --> 01:24:39,760
two are just so y'all can see. Um,

1862
01:24:39,760 --> 01:24:41,440
honestly,

1863
01:24:41,440 --> 01:24:44,480
it's going to come down to um we can

1864
01:24:44,480 --> 01:24:48,159
obviously show um

1865
01:24:48,159 --> 01:24:49,600
uh Ivonne probably won't like me saying

1866
01:24:49,600 --> 01:24:51,440
this, but I don't know that we even said

1867
01:24:51,440 --> 01:24:56,550
this. We can we can probably show um

1868
01:24:56,560 --> 01:24:59,840
uh a um a negative, but the problem is

1869
01:24:59,840 --> 01:25:03,679
going to be that um it it

1870
01:25:03,679 --> 01:25:07,600
I it's going to turn into

1871
01:25:07,600 --> 01:25:10,960
a matter of unless it's an absolute

1872
01:25:10,960 --> 01:25:14,320
necessary purchase,

1873
01:25:14,320 --> 01:25:14,880
it

1874
01:25:14,880 --> 01:25:18,639
>> it's a no. I mean when it comes to the

1875
01:25:18,639 --> 01:25:19,840
water at this point.

1876
01:25:19,840 --> 01:25:22,800
>> So do these calculations include our

1877
01:25:22,800 --> 01:25:24,239
proposed

1878
01:25:24,239 --> 01:25:26,000
>> No, now we didn't have that. So there is

1879
01:25:26,000 --> 01:25:27,840
going to be a little bit of a change in

1880
01:25:27,840 --> 01:25:30,560
>> there is going to be a little bit jump.

1881
01:25:30,560 --> 01:25:31,840
>> Say it's going to take at least one

1882
01:25:31,840 --> 01:25:34,560
year, one cycle to get back in the

1883
01:25:34,560 --> 01:25:35,040
positive.

1884
01:25:35,040 --> 01:25:35,360
>> Yeah.

1885
01:25:35,360 --> 01:25:35,760
>> So

1886
01:25:35,760 --> 01:25:37,360
>> it's going to take a while.

1887
01:25:37,360 --> 01:25:40,400
>> Well, one year after the next year, yes,

1888
01:25:40,400 --> 01:25:42,880
we should be back up.

1889
01:25:42,880 --> 01:25:43,199
So

1890
01:25:43,199 --> 01:25:44,960
>> that's why I wasn't in disagreement with

1891
01:25:44,960 --> 01:25:46,639
the rate increase. Yeah.

1892
01:25:46,639 --> 01:25:48,880
>> Yeah. So, this definitely that will

1893
01:25:48,880 --> 01:25:52,880
actually show on on that. So,

1894
01:25:52,880 --> 01:25:54,400
>> yeah. So, that doesn't because we didn't

1895
01:25:54,400 --> 01:25:56,080
have necessarily that we didn't know

1896
01:25:56,080 --> 01:25:57,199
which direction y'all were going to

1897
01:25:57,199 --> 01:25:58,880
take. So, we didn't have that at the

1898
01:25:58,880 --> 01:26:01,760
time um built in. So, that that will be

1899
01:26:01,760 --> 01:26:02,480
a change.

1900
01:26:02,480 --> 01:26:03,920
>> I can tell you from the commercial side,

1901
01:26:03,920 --> 01:26:05,199
there'll be a few of them that we will

1902
01:26:05,199 --> 01:26:06,000
gain some good

1903
01:26:06,000 --> 01:26:07,600
>> that will be a change. Um

1904
01:26:07,600 --> 01:26:10,239
>> is this going to affect our city rating?

1905
01:26:10,239 --> 01:26:13,920
It could. You talk about like our our um

1906
01:26:13,920 --> 01:26:15,520
>> aa whatever we are.

1907
01:26:15,520 --> 01:26:17,840
>> We were already affected once this last

1908
01:26:17,840 --> 01:26:20,560
year and it very well could.

1909
01:26:20,560 --> 01:26:22,960
>> Um

1910
01:26:22,960 --> 01:26:26,080
it but it it honestly is going to be

1911
01:26:26,080 --> 01:26:27,520
Yeah. I mean, it's going to be a matter

1912
01:26:27,520 --> 01:26:29,920
of I know we we just, you know, talked

1913
01:26:29,920 --> 01:26:31,440
about and I talked with the staff today

1914
01:26:31,440 --> 01:26:32,639
about, you know, we're finally getting

1915
01:26:32,639 --> 01:26:34,560
the credit cards and and it's great and

1916
01:26:34,560 --> 01:26:36,159
all that, but it's honestly going to be

1917
01:26:36,159 --> 01:26:38,159
like they're going to have to ask for

1918
01:26:38,159 --> 01:26:40,960
permission before purchasing anything at

1919
01:26:40,960 --> 01:26:43,840
this point because it's just a matter of

1920
01:26:43,840 --> 01:26:46,000
>> cost. But we pretty much care everything

1921
01:26:46,000 --> 01:26:46,960
for future.

1922
01:26:46,960 --> 01:26:49,679
>> Yeah.

1923
01:26:49,679 --> 01:26:51,440
Five years. Unless it's an

1924
01:26:51,440 --> 01:26:53,760
absolute emergency or we have to have

1925
01:26:53,760 --> 01:26:56,159
it, it's going to be, you know, I'm

1926
01:26:56,159 --> 01:26:57,280
gonna have to tell them no.

1927
01:26:57,280 --> 01:26:59,199
>> And when you think about it, when you

1928
01:26:59,199 --> 01:27:03,510
think of the utility

1929
01:27:03,520 --> 01:27:07,270
from from

1930
01:27:07,280 --> 01:27:09,520
2022

1931
01:27:09,520 --> 01:27:14,320
to now, we have had some type of water

1932
01:27:14,320 --> 01:27:15,360
project.

1933
01:27:15,360 --> 01:27:15,760
>> Yeah.

1934
01:27:15,760 --> 01:27:16,719
>> Or water.

1935
01:27:16,719 --> 01:27:18,960
>> We pretty much take care of that now. So

1936
01:27:18,960 --> 01:27:24,239
by now November right bush. So so now by

1937
01:27:24,239 --> 01:27:28,080
November of this year technically all of

1938
01:27:28,080 --> 01:27:30,560
our water projects everything that we're

1939
01:27:30,560 --> 01:27:32,639
out there that's going to be taken care

1940
01:27:32,639 --> 01:27:34,480
of. The only one thing that is going to

1941
01:27:34,480 --> 01:27:36,080
be remaining is just going to be the

1942
01:27:36,080 --> 01:27:36,880
waste water

1943
01:27:36,880 --> 01:27:38,320
>> and it's starting.

1944
01:27:38,320 --> 01:27:41,920
>> Yeah. So yeah. So in in some ways we

1945
01:27:41,920 --> 01:27:42,960
have

1946
01:27:42,960 --> 01:27:45,920
>> yeah we did incur but it honestly this

1947
01:27:45,920 --> 01:27:48,080
stuff and once again I I got to

1948
01:27:48,080 --> 01:27:49,760
emphasize especially with two of those

1949
01:27:49,760 --> 01:27:52,000
projects two of those projects should

1950
01:27:52,000 --> 01:27:54,560
have been long time ago. Yeah. You know

1951
01:27:54,560 --> 01:27:57,280
why

1952
01:27:57,280 --> 01:27:59,199
when when did they put the the booster

1953
01:27:59,199 --> 01:28:04,000
stations out there? How many years ago?

1954
01:28:04,000 --> 01:28:07,520
It was way before you. Right. So why why

1955
01:28:07,520 --> 01:28:09,679
did they decide to do three instead of

1956
01:28:09,679 --> 01:28:12,560
four? It's normally paired.

1957
01:28:12,560 --> 01:28:14,400
You know, they went with that and now

1958
01:28:14,400 --> 01:28:16,320
we're the ones having to deal with that.

1959
01:28:16,320 --> 01:28:18,080
You also got to remember how much should

1960
01:28:18,080 --> 01:28:20,880
we spend to cap well number three.

1961
01:28:20,880 --> 01:28:23,120
>> Oh

1962
01:28:23,120 --> 01:28:25,520
>> 150 200 something I don't know. Yeah.

1963
01:28:25,520 --> 01:28:27,679
>> To cap the well

1964
01:28:27,679 --> 01:28:28,480
studies.

1965
01:28:28,480 --> 01:28:31,520
>> The well the well itself the well itself

1966
01:28:31,520 --> 01:28:34,880
should have been capped back since 2009.

1967
01:28:34,880 --> 01:28:36,239
at

1968
01:28:36,239 --> 01:28:37,280
least.

1969
01:28:37,280 --> 01:28:38,400
>> Yeah.

1970
01:28:38,400 --> 01:28:40,560
Should have been capped. We had to

1971
01:28:40,560 --> 01:28:43,520
absorb that, too. So, yeah. Right now,

1972
01:28:43,520 --> 01:28:46,000
when you look at this Yeah. But I like

1973
01:28:46,000 --> 01:28:47,760
to look back and say, "What have I

1974
01:28:47,760 --> 01:28:48,000
done?"

1975
01:28:48,000 --> 01:28:48,880
>> I agree.

1976
01:28:48,880 --> 01:28:51,440
>> And and honestly, you know, I think

1977
01:28:51,440 --> 01:28:54,159
we've done a lot. Yeah. It put us in a

1978
01:28:54,159 --> 01:28:56,080
little bit of a tight spot, but we are

1979
01:28:56,080 --> 01:28:57,600
going to be a lot better in the future

1980
01:28:57,600 --> 01:28:59,199
because we took care of the stuff that

1981
01:28:59,199 --> 01:29:00,639
needed to be done and we don't need to

1982
01:29:00,639 --> 01:29:04,719
worry about asking the finance lady Ivon

1983
01:29:04,719 --> 01:29:07,199
for additional funds to try to figure

1984
01:29:07,199 --> 01:29:10,400
out how to take care of a water project.

1985
01:29:10,400 --> 01:29:14,000
>> So, it'll it'll be it'll be it'll be

1986
01:29:14,000 --> 01:29:15,760
better. It's going to be a lot better.

1987
01:29:15,760 --> 01:29:18,159
The other thing I will note, we did uh

1988
01:29:18,159 --> 01:29:20,159
we did remove

1989
01:29:20,159 --> 01:29:23,440
um out of this to help alleviate some

1990
01:29:23,440 --> 01:29:24,880
and I know it doesn't look like it

1991
01:29:24,880 --> 01:29:28,000
because it's still 1.6. Uh but we did

1992
01:29:28,000 --> 01:29:32,239
move um Pete uh Pete's salary into the

1993
01:29:32,239 --> 01:29:34,800
public works budget to help. So that's

1994
01:29:34,800 --> 01:29:37,920
been moved to the general fund. Um so

1995
01:29:37,920 --> 01:29:39,679
his his salary has been moved over

1996
01:29:39,679 --> 01:29:40,960
there. Obviously, we had talked about

1997
01:29:40,960 --> 01:29:42,560
the the new truck

1998
01:29:42,560 --> 01:29:44,000
>> purchase was already moved into the

1999
01:29:44,000 --> 01:29:45,760
general fund because it can it has a

2000
01:29:45,760 --> 01:29:47,440
little more flexibility to help support

2001
01:29:47,440 --> 01:29:48,880
that and obviously we're still in the

2002
01:29:48,880 --> 01:29:51,520
positive as seen as and talked about.

2003
01:29:51,520 --> 01:29:55,600
So, um we've tried to be as strategic as

2004
01:29:55,600 --> 01:29:57,600
possible, but yeah, it's um

2005
01:29:57,600 --> 01:30:01,199
unfortunately it's just um until and and

2006
01:30:01,199 --> 01:30:02,719
we've talked about it, but until some of

2007
01:30:02,719 --> 01:30:04,480
these things that we've, you know, we're

2008
01:30:04,480 --> 01:30:06,239
in negotiation with and we've talked

2009
01:30:06,239 --> 01:30:09,360
about till they hit, we're just going to

2010
01:30:09,360 --> 01:30:11,360
be unfortunately a little bare bones for

2011
01:30:11,360 --> 01:30:12,800
a while and and we're just going to have

2012
01:30:12,800 --> 01:30:14,320
to muddle through. So,

2013
01:30:14,320 --> 01:30:16,480
>> and we'll just take care of be that way,

2014
01:30:16,480 --> 01:30:18,000
but that's the way we got to be

2015
01:30:18,000 --> 01:30:20,000
>> and we'll just be able to just

2016
01:30:20,000 --> 01:30:21,920
>> it'll be okay.

2017
01:30:21,920 --> 01:30:23,840
It'll be it'll be okay.

2018
01:30:23,840 --> 01:30:24,719
>> So,

2019
01:30:24,719 --> 01:30:26,080
>> we stay on top of

2020
01:30:26,080 --> 01:30:28,080
>> Yeah.

2021
01:30:28,080 --> 01:30:29,199
>> So, uh

2022
01:30:29,199 --> 01:30:31,360
>> and you know, and honestly, I mean, I

2023
01:30:31,360 --> 01:30:34,000
know

2024
01:30:34,000 --> 01:30:36,400
I always I always dread the AP, you

2025
01:30:36,400 --> 01:30:38,000
know, conversation at the council

2026
01:30:38,000 --> 01:30:38,880
meeting because I know you're going to

2027
01:30:38,880 --> 01:30:40,080
find something in there and I'm not

2028
01:30:40,080 --> 01:30:41,840
going to have an answer to, but you

2029
01:30:41,840 --> 01:30:43,440
know, call us out if you think there's

2030
01:30:43,440 --> 01:30:44,719
something in there that doesn't make

2031
01:30:44,719 --> 01:30:47,040
sense, you know. So, you know, and I

2032
01:30:47,040 --> 01:30:48,639
know that's always after the fact, but

2033
01:30:48,639 --> 01:30:49,920
still, I mean, it's, you know, things

2034
01:30:49,920 --> 01:30:50,880
that we can

2035
01:30:50,880 --> 01:30:53,840
>> put up

2036
01:30:53,840 --> 01:30:54,719
that

2037
01:30:54,719 --> 01:30:56,880
>> uh well, some some things were already

2038
01:30:56,880 --> 01:30:59,040
going out, right? It's just a matter of

2039
01:30:59,040 --> 01:31:02,239
um depending on what the services are um

2040
01:31:02,239 --> 01:31:04,560
and the timing of it. So, it just I

2041
01:31:04,560 --> 01:31:05,920
mean, if if you're asking something

2042
01:31:05,920 --> 01:31:07,440
specifically, we can get offline and

2043
01:31:07,440 --> 01:31:09,600
figure out and I can I can just little

2044
01:31:09,600 --> 01:31:12,719
expensive talk like

2045
01:31:12,719 --> 01:31:13,520
all that adds up.

2046
01:31:13,520 --> 01:31:14,719
>> Well, we're bringing that in house.

2047
01:31:14,719 --> 01:31:15,760
That's what I'm saying. So all that adds

2048
01:31:15,760 --> 01:31:16,960
up protecting that, right?

2049
01:31:16,960 --> 01:31:17,760
>> Yeah.

2050
01:31:17,760 --> 01:31:19,120
>> You know, there's other little things

2051
01:31:19,120 --> 01:31:23,510
that you know.

2052
01:31:23,520 --> 01:31:23,840
» Yeah.

2053
01:31:23,840 --> 01:31:25,360
>> That ends up also help.

2054
01:31:25,360 --> 01:31:27,520
>> Yeah.

2055
01:31:27,520 --> 01:31:30,159
>> Another I know they probably don't like

2056
01:31:30,159 --> 01:31:31,520
me saying it, but another thing we've

2057
01:31:31,520 --> 01:31:34,000
talked about and really on them about

2058
01:31:34,000 --> 01:31:36,159
getting them tested so we can stop, you

2059
01:31:36,159 --> 01:31:37,840
know, paying some guys, you know, to

2060
01:31:37,840 --> 01:31:42,159
hold licenses, right? And and they're aware of those conversations.

2061
01:31:42,159 --> 01:31:43,600
We've had that. So, I mean, that just

2062
01:31:43,600 --> 01:31:46,239
helps, right? like we're we've had

2063
01:31:46,239 --> 01:31:48,719
those. So, yeah.

2064
01:31:48,719 --> 01:31:50,239
>> Yeah,

2065
01:31:50,239 --> 01:31:52,480
it'll be good.

2066
01:31:52,480 --> 01:31:56,239
>> Council, any questions on the actual

2067
01:31:56,239 --> 01:31:58,719
changes or anything? Was there anything

2068
01:31:58,719 --> 01:32:01,520
since we have the departments here? Was

2069
01:32:01,520 --> 01:32:03,840
there any changes I on what they

2070
01:32:03,840 --> 01:32:05,760
submitted and what they were asking for

2071
01:32:05,760 --> 01:32:07,360
just to make sure we can get their

2072
01:32:07,360 --> 01:32:09,760
input? I think we did we did make we did

2073
01:32:09,760 --> 01:32:14,080
add chief's uh certificate, right?

2074
01:32:14,080 --> 01:32:16,880
>> Oh yes.

2075
01:32:16,880 --> 01:32:18,880
>> And then we looked on there. I think

2076
01:32:18,880 --> 01:32:21,679
when we got the three things we talked

2077
01:32:21,679 --> 01:32:25,280
about moving money

2078
01:32:25,280 --> 01:32:27,520
>> anything that was agreed to council that

2079
01:32:27,520 --> 01:32:31,910
night.

2080
01:32:31,920 --> 01:32:34,000
» So we got we got Cassandra covered. send

2081
01:32:34,000 --> 01:32:38,000
out we'll send out an updated one to

2082
01:32:38,000 --> 01:32:39,920
everybody so they have that

2083
01:32:39,920 --> 01:32:42,320
>> mayor ask you this there's something

2084
01:32:42,320 --> 01:32:48,560
that that I see like hey you know what I don't think his salary

2085
01:32:48,560 --> 01:32:52,560
fits that person or this can we do do I

2086
01:32:52,560 --> 01:32:54,480
have to go and put them on the agenda

2087
01:32:54,480 --> 01:32:57,040
and we talk about it or bring it up and

2088
01:32:57,040 --> 01:32:59,520
say I recommend that you know of course

2089
01:32:59,520 --> 01:33:00,719
I understand we're talking about money

2090
01:33:00,719 --> 01:33:03,280
and we're we're in we're talking about

2091
01:33:03,280 --> 01:33:04,719
But, you know, I think there should be

2092
01:33:04,719 --> 01:33:06,320
an increase on this part or, you know,

2093
01:33:06,320 --> 01:33:07,120
for a certain

2094
01:33:07,120 --> 01:33:08,800
>> what I would what I would think would be

2095
01:33:08,800 --> 01:33:12,560
good is is work it to where get Zach

2096
01:33:12,560 --> 01:33:13,600
involved

2097
01:33:13,600 --> 01:33:16,400
>> and we get an HR expert to come in. You

2098
01:33:16,400 --> 01:33:19,440
know, not not charge a lot. Okay. Just a

2099
01:33:19,440 --> 01:33:19,840
little bit.

2100
01:33:19,840 --> 01:33:21,520
>> Well, I mean, even even going outside

2101
01:33:21,520 --> 01:33:24,239
and seeing what other cities you could,

2102
01:33:24,239 --> 01:33:25,199
you know,

2103
01:33:25,199 --> 01:33:26,880
>> we need to see if we've we've

2104
01:33:26,880 --> 01:33:29,120
participated in some salary surveys

2105
01:33:29,120 --> 01:33:30,639
because other cities normally

2106
01:33:30,639 --> 01:33:32,239
participate in them. And if we

2107
01:33:32,239 --> 01:33:35,840
participate, we we can get they'll send

2108
01:33:35,840 --> 01:33:37,040
us

2109
01:33:37,040 --> 01:33:38,639
>> the results. You get access to the

2110
01:33:38,639 --> 01:33:40,080
results, right?

2111
01:33:40,080 --> 01:33:43,120
>> It goes across everybody,

2112
01:33:43,120 --> 01:33:44,480
>> you know, public works or police

2113
01:33:44,480 --> 01:33:46,239
department, the library. I'm just saying

2114
01:33:46,239 --> 01:33:48,239
in general, just we have a great team.

2115
01:33:48,239 --> 01:33:48,560
>> Yeah.

2116
01:33:48,560 --> 01:33:50,239
>> Across the board with everybody we have,

2117
01:33:50,239 --> 01:33:51,280
you know, and if there's things that we

2118
01:33:51,280 --> 01:33:54,239
can do to help keep keep that going and

2119
01:33:54,239 --> 01:33:56,960
yes, it does cost something high.

2120
01:33:56,960 --> 01:33:59,520
>> Yeah. I do take, you know, from what

2121
01:33:59,520 --> 01:34:02,000
Rich said the other day, you know, about

2122
01:34:02,000 --> 01:34:03,679
>> family medical,

2123
01:34:03,679 --> 01:34:05,520
>> you know, he pays out for family

2124
01:34:05,520 --> 01:34:06,560
medical. I was just like,

2125
01:34:06,560 --> 01:34:06,960
>> yeah,

2126
01:34:06,960 --> 01:34:09,600
>> I was, you know, going on,

2127
01:34:09,600 --> 01:34:11,440
>> you know, so there's just things that I

2128
01:34:11,440 --> 01:34:12,400
would like to

2129
01:34:12,400 --> 01:34:14,880
>> help compensate on some stuff if we can.

2130
01:34:14,880 --> 01:34:15,280
>> Yeah.

2131
01:34:15,280 --> 01:34:16,639
>> Because of items like that.

2132
01:34:16,639 --> 01:34:18,880
>> Yeah. And that speaking of RFPs, like

2133
01:34:18,880 --> 01:34:21,920
that RFP went out today.

2134
01:34:21,920 --> 01:34:23,679
>> So for like the broker, the insurance

2135
01:34:23,679 --> 01:34:25,360
broker. So

2136
01:34:25,360 --> 01:34:27,199
>> it's in the paper. Yeah. So that went

2137
01:34:27,199 --> 01:34:28,719
out today. So to try to find an

2138
01:34:28,719 --> 01:34:30,400
insurance broker to find those options,

2139
01:34:30,400 --> 01:34:31,440
right?

2140
01:34:31,440 --> 01:34:33,440
>> Correct. Yeah. Unfortunately, that's not

2141
01:34:33,440 --> 01:34:36,719
>> But at any point if any council member

2142
01:34:36,719 --> 01:34:39,040
was wondering about pay for somebody, go

2143
01:34:39,040 --> 01:34:42,080
with Zach so we can get the HR involved

2144
01:34:42,080 --> 01:34:43,840
to try to figure out, you know, we might

2145
01:34:43,840 --> 01:34:45,440
already have the data or have access to

2146
01:34:45,440 --> 01:34:47,199
the data or maybe we never talked about

2147
01:34:47,199 --> 01:34:48,960
it and we need to get somebody to kind

2148
01:34:48,960 --> 01:34:51,040
of give us an idea. But either way, it's

2149
01:34:51,040 --> 01:34:52,719
still going to come back to us to go

2150
01:34:52,719 --> 01:34:54,400
ahead and review if we're going to make

2151
01:34:54,400 --> 01:34:56,159
changes and when it's going to be

2152
01:34:56,159 --> 01:34:58,719
appropriate for us to make the changes.

2153
01:34:58,719 --> 01:35:00,719
Uh but yes, it would

2154
01:35:00,719 --> 01:35:02,800
>> and the salaries were provided for

2155
01:35:02,800 --> 01:35:05,679
y'all. We we did give those as another

2156
01:35:05,679 --> 01:35:07,920
sheet. I mean, obviously I we didn't

2157
01:35:07,920 --> 01:35:10,639
necessarily have anything for sure we

2158
01:35:10,639 --> 01:35:12,400
wanted to talk to y'all unless y'all you

2159
01:35:12,400 --> 01:35:15,040
wanted to say anything, but you know,

2160
01:35:15,040 --> 01:35:17,360
but we did we did mention

2161
01:35:17,360 --> 01:35:20,000
>> we did put on there different uh

2162
01:35:20,000 --> 01:35:21,600
percentages.

2163
01:35:21,600 --> 01:35:22,480
>> Yeah. Yeah. Yeah.

2164
01:35:22,480 --> 01:35:23,920
>> Did we did put on there different

2165
01:35:23,920 --> 01:35:26,719
percentages again knowing that right now

2166
01:35:26,719 --> 01:35:30,239
what's in the budget is 3% is built in.

2167
01:35:30,239 --> 01:35:32,400
But um

2168
01:35:32,400 --> 01:35:35,840
>> I just wanted to highlight how much the

2169
01:35:35,840 --> 01:35:40,639
3% is costing the budget. And at 3% in

2170
01:35:40,639 --> 01:35:43,199
general fund, it's going to cost almost

2171
01:35:43,199 --> 01:35:45,040
51,000,

2172
01:35:45,040 --> 01:35:50,000
water almost 4,000 and sewer for uh

2173
01:35:50,000 --> 01:35:51,920
4,800.

2174
01:35:51,920 --> 01:35:53,760
Um

2175
01:35:53,760 --> 01:35:56,800
the one issue that he's talking about

2176
01:35:56,800 --> 01:35:58,880
would be in the police department. And

2177
01:35:58,880 --> 01:36:07,600
you can just kind of look at PD and we have discussed that issue and had

2178
01:36:07,600 --> 01:36:09,679
already planned on coming up with

2179
01:36:09,679 --> 01:36:12,639
something. We'll fix that.

2180
01:36:12,639 --> 01:36:13,760
>> Good. Thank you.

2181
01:36:13,760 --> 01:36:15,040
>> Yes.

2182
01:36:15,040 --> 01:36:16,719
>> I don't know what it is. I don't know

2183
01:36:16,719 --> 01:36:17,679
what the solution.

2184
01:36:17,679 --> 01:36:21,120
>> The good thing is it's general fund.

2185
01:36:21,120 --> 01:36:23,600
So, um

2186
01:36:23,600 --> 01:36:26,480
this basically just tells you how much

2187
01:36:26,480 --> 01:36:28,719
each percentage

2188
01:36:28,719 --> 01:36:30,239
um

2189
01:36:30,239 --> 01:36:33,360
we had talked and thinking,

2190
01:36:33,360 --> 01:36:35,840
but after your comment, maybe not that

2191
01:36:35,840 --> 01:36:38,880
this may not be a good idea this year or

2192
01:36:38,880 --> 01:36:42,800
maybe look at it mid year just because

2193
01:36:42,800 --> 01:36:46,000
funds are so tight. It's not going to

2194
01:36:46,000 --> 01:36:53,119
give us much money, but

2195
01:36:53,119 --> 01:36:54,960
>> it's currently set at three.

2196
01:36:54,960 --> 01:36:57,760
>> Yes. In the budget, it's at 3%.

2197
01:36:57,760 --> 01:37:00,560
>> Y'all

2198
01:37:00,560 --> 01:37:03,750
be good.

2199
01:37:03,760 --> 01:37:07,109
All right.

2200
01:37:07,119 --> 01:37:09,119
Zach, need anything else?

2201
01:37:09,119 --> 01:37:10,560
>> That's it for myself.

2202
01:37:10,560 --> 01:37:12,239
>> Okay. Do you need anything with the

2203
01:37:12,239 --> 01:37:14,880
budget, the changes? I mean,

2204
01:37:14,880 --> 01:37:16,080
>> that was it. I mean, nothing's really

2205
01:37:16,080 --> 01:37:18,080
changed. Like I said, we build those

2206
01:37:18,080 --> 01:37:19,679
things in that we talked about, we'll go

2207
01:37:19,679 --> 01:37:22,480
ahead and send out updated so everybody

2208
01:37:22,480 --> 01:37:24,639
has a copy of that. If there's anything

2209
01:37:24,639 --> 01:37:28,400
that comes out of that um that you see

2210
01:37:28,400 --> 01:37:30,159
if you know, please get with me, let me

2211
01:37:30,159 --> 01:37:32,880
know. Uh you know, but we'll kind of

2212
01:37:32,880 --> 01:37:35,440
proceed accordingly and get the like

2213
01:37:35,440 --> 01:37:40,800
utility stuff working and um prepare for

2214
01:37:40,800 --> 01:37:43,040
getting it adopted. Yeah.

2215
01:37:43,040 --> 01:37:46,000
>> So, what you presented right here, you

2216
01:37:46,000 --> 01:37:48,159
said changes. There are some changes in

2217
01:37:48,159 --> 01:37:48,719
here.

2218
01:37:48,719 --> 01:37:51,360
>> It No, it was mostly to go over.

2219
01:37:51,360 --> 01:37:53,280
>> Okay. So, we don't need to vote because

2220
01:37:53,280 --> 01:37:54,800
Okay. Yeah. I just want to make sure.

2221
01:37:54,800 --> 01:37:55,679
>> You're good.

2222
01:37:55,679 --> 01:37:57,920
>> Okay. I'll be able to do that. All

2223
01:37:57,920 --> 01:37:59,920
right. It was more the opportunity in

2224
01:37:59,920 --> 01:38:01,040
case we needed to.

2225
01:38:01,040 --> 01:38:02,800
>> Got it. Okay. So, I think that one we

2226
01:38:02,800 --> 01:38:03,920
should be okay.

2227
01:38:03,920 --> 01:38:06,400
>> All right. Council, uh, any anything

2228
01:38:06,400 --> 01:38:08,800
else? Anybody has a question? Anything

2229
01:38:08,800 --> 01:38:10,719
dealing with the budget? I I just want

2230
01:38:10,719 --> 01:38:12,560
to reiterate kind of you always say, you

2231
01:38:12,560 --> 01:38:14,000
know, we're not projects now that should

2232
01:38:14,000 --> 01:38:16,320
have been taken care of long time ago.

2233
01:38:16,320 --> 01:38:19,280
Um and I say to public because you know

2234
01:38:19,280 --> 01:38:20,800
they going to see an increase in a lot

2235
01:38:20,800 --> 01:38:26,159
of tax and water and you know um you

2236
01:38:26,159 --> 01:38:28,480
know I've heard some some comments on

2237
01:38:28,480 --> 01:38:31,199
people from my area. Hey, you know my

2238
01:38:31,199 --> 01:38:34,239
water bill is $460, right? And it's

2239
01:38:34,239 --> 01:38:35,920
going to go up again. But but again

2240
01:38:35,920 --> 01:38:38,400
we're doing it for better assistance and

2241
01:38:38,400 --> 01:38:41,440
again things taken care of now.

2242
01:38:41,440 --> 01:38:45,760
So just want to reiterate that that you

2243
01:38:45,760 --> 01:39:04,390
>> Yes sir. Yes sir.

2244
01:39:04,400 --> 01:39:06,239
» Yeah. Along with a few other projects

2245
01:39:06,239 --> 01:39:08,159
too. Hopefully everything lines up for

2246
01:39:08,159 --> 01:39:09,360
us.

2247
01:39:09,360 --> 01:39:12,639
Okay, with that in mind, it is 7:56

2248
01:39:12,639 --> 01:39:14,159
right now. Do I have a motion to

2249
01:39:14,159 --> 01:39:17,440
adjurnn? Got a motion to a second.

2250
01:39:17,440 --> 01:39:19,520
>> All those in favor?

2251
01:39:19,520 --> 01:39:22,320
>> Any opposed? All right. Thank you.

2252
01:39:22,320 --> 01:39:25,800
Appreciate it.