1 00:00:00,000 --> 00:00:01,660 Anybody else for public comments? 2 00:00:03,760 --> 00:00:07,200 I didn't just put the agenda right now. 3 00:00:29,630 --> 00:00:31,970 All right, all 4 00:00:34,720 --> 00:00:42,320 right. We sure appreciate everybody being here tonight. Thank you so much. It is six o'clock. So we'll 5 00:00:42,320 --> 00:00:44,640 Call this in to order and we'll have local 6 00:00:45,500 --> 00:00:46,760 Mayor Senna here 7 00:00:46,760 --> 00:00:55,360 Commissioner Smith here, Commissioner Mills here, Commissioner Fields here, Commissioner Caledon here, Commissioner Pennick here, Commissioner girth 8 00:00:55,360 --> 00:01:01,900 All right tonight. We're gonna switch it up a little bit. So we'll have the invocation by Commissioner Pennick and the pledge by Commissioner Fields 9 00:01:01,900 --> 00:01:03,200 We appreciate you 10 00:01:03,200 --> 00:01:03,640 Thank 11 00:01:05,720 --> 00:01:07,120 you, please bow 12 00:01:08,160 --> 00:01:13,840 By the God. We're so grateful to be before you to see me in Lord. I pray that you give us wisdom and guidance by the God 13 00:01:13,840 --> 00:01:18,120 to make decisions that's pleasing unto you and what's best for the people of 14 00:01:18,120 --> 00:01:23,600 Hobbes. Lord God, I pray that you watch over our community Lord, keep us safe. 15 00:01:23,920 --> 00:01:27,640 I pray that you watch over our first responders and our military men and 16 00:01:27,640 --> 00:01:31,880 women. Father, thank you for your gift on the cross that we may be forgiven of 17 00:01:31,880 --> 00:01:37,580 our sins. Father God, we love you. We praise your name and Jesus' name. Amen. I 18 00:01:37,580 --> 00:01:43,340 pledge allegiance to the flag of the United States of America and to the Republic 19 00:01:43,340 --> 00:01:49,800 for which he stands, one nation under God, indivisible, with liberty and justice for all. 20 00:01:52,070 --> 00:01:57,630 Thank you so much, commissioners, and now we'll have approval of the minutes if you've 21 00:01:57,630 --> 00:02:01,950 had a chance to look them over. We'll entertain a motion. Moved by Mayor Pro Tem, got that 22 00:02:01,950 --> 00:02:05,830 on. Second. Seconded by Commissioner Don Gurth. Voting 23 00:02:17,030 --> 00:02:19,890 is in progress. We're missing anyone. 24 00:02:21,730 --> 00:02:30,410 I think we got it very good it has past 7 to 0 tonight we do not have 25 00:02:30,410 --> 00:02:35,750 proclamations and awards of merit but we do have public comments public comments 26 00:02:35,750 --> 00:02:39,430 or citizens who wish to speak must sign the public comment registration form 27 00:02:39,430 --> 00:02:44,030 located in the commission chamber prior to the beginning of the meeting we keep 28 00:02:44,030 --> 00:02:47,850 it to three minutes per person and we have timers right up there we'll have 29 00:02:47,850 --> 00:02:52,590 Angelica Alvarado, and she wants to discuss parks, water use, and 30 00:02:52,590 --> 00:02:53,330 flock cameras. 31 00:02:53,870 --> 00:02:55,250 Thank you for being with us, Angelica. 32 00:03:00,160 --> 00:03:01,940 Hello, thank you for having me today. 33 00:03:02,260 --> 00:03:05,100 I have a few things that I want to talk about. 34 00:03:05,620 --> 00:03:08,720 The first one is, I think we should keep the park lights on till midnight. 35 00:03:09,500 --> 00:03:13,000 I was going to request on night, but I think midnight is probably better. 36 00:03:14,020 --> 00:03:17,560 Our use needs places to be young and active, leaving all the sports 37 00:03:17,560 --> 00:03:20,780 complexes lights on will be an outlet for all the community. 38 00:03:20,780 --> 00:03:25,200 older adults can go and walk on the trails. The teens have an outlet for all that 39 00:03:25,200 --> 00:03:30,400 pent up energy and families have somewhere outdoors to go bond. New York has 40 00:03:30,400 --> 00:03:34,600 left their park lights on all night and they have seen a drop in crime from the 41 00:03:34,600 --> 00:03:39,100 adolescence in their community. Children are always first in my book so let's 42 00:03:39,100 --> 00:03:43,180 start doing things that benefit our children and their future. Something as 43 00:03:43,180 --> 00:03:46,840 simple as leaving the park lights on longer can have a major impact on our 44 00:03:46,840 --> 00:03:53,400 children. We went to go play soccer at the soccerplex the other day and by the time the game was 45 00:03:53,400 --> 00:03:58,400 getting good the lights went off and everybody had to leave it was pitch dark out there and there 46 00:03:58,400 --> 00:04:03,560 was families kids a lot of people out there playing and we all had to leave. So that's when I thought 47 00:04:03,560 --> 00:04:09,460 these park lights need to be on longer you know so kids can go out there and play adults that you know 48 00:04:09,460 --> 00:04:14,400 work late if they want to go play basketball the lights are on for them baseball soccer. I think 49 00:04:14,400 --> 00:04:19,460 that would be a good thing for our community. The parks are there. Why not leave the lights on 50 00:04:19,460 --> 00:04:27,540 for everybody to use? My next one is floor cameras don't belong here. The Hood County Constable said 51 00:04:27,540 --> 00:04:33,280 that kind of permanent warrantless tracking doesn't belong in a free society. If we are truly a free 52 00:04:33,280 --> 00:04:38,720 society we should not be tracked or licensed plates should not be taken pictures of. I know that we 53 00:04:38,720 --> 00:04:43,180 all believe in limited government, but I don't like anyone in my business much less the government. 54 00:04:43,180 --> 00:04:46,320 I don't remember if there was a meeting even approving 55 00:04:46,320 --> 00:04:49,540 flock cameras here in Hobbes maybe I missed it but I think it 56 00:04:49,540 --> 00:04:52,260 should have been up to the public if they wanted to be 57 00:04:52,260 --> 00:04:53,780 surveillance in their own city. 58 00:04:54,680 --> 00:04:56,800 Here are a few examples that have, 59 00:04:57,940 --> 00:05:01,200 where flock cameras have been misused by policemen to track 60 00:05:01,200 --> 00:05:02,920 and harass ex-girlfriends and lovers, 61 00:05:03,600 --> 00:05:06,240 flock cameras are making errors that lead to individuals 62 00:05:06,240 --> 00:05:08,080 being held up at gunpoint, 63 00:05:09,060 --> 00:05:12,160 police chief used a flock system to search his ex-girlfriend 64 00:05:12,160 --> 00:05:14,460 and her new boyfriend over 200 times. 65 00:05:15,020 --> 00:05:16,880 These are all true stories that Y'all can look up. 66 00:05:17,580 --> 00:05:20,740 If you need used flock to track a woman he liked, 67 00:05:21,180 --> 00:05:23,560 deputy used a flock to track his current girlfriend, 68 00:05:23,940 --> 00:05:26,560 her mother and her father, just because he felt like it. 69 00:05:27,260 --> 00:05:30,480 Flock missed right a plate, which got a man held up at gunpoint. 70 00:05:31,120 --> 00:05:33,680 Sheriff stalked his wife hundreds of times 71 00:05:33,680 --> 00:05:34,840 with the flock cameras. 72 00:05:35,400 --> 00:05:37,760 Deputies used flock to watch over another deputy 73 00:05:37,760 --> 00:05:39,840 that he was having an affair with, 74 00:05:40,080 --> 00:05:40,620 flocked cameras, 75 00:05:42,760 --> 00:05:44,740 got grandparents and their granddaughters 76 00:05:44,740 --> 00:05:46,980 held up at gunpoint because of an error that it made. 77 00:05:47,680 --> 00:05:50,280 We're basically giving bad people access to devices 78 00:05:50,280 --> 00:05:52,440 that are being misused against women. 79 00:05:53,100 --> 00:05:56,320 We don't need to give this world new ways to abuse women, 80 00:05:56,520 --> 00:05:58,980 even if it is just tracking them through a camera. 81 00:05:59,680 --> 00:06:01,560 Let's cancel our contract with flock 82 00:06:01,560 --> 00:06:02,780 and let's take them all down. 83 00:06:03,180 --> 00:06:05,220 Let's show the people that you're actually working for 84 00:06:05,220 --> 00:06:06,660 the people, not for big brother. 85 00:06:06,660 --> 00:06:14,880 Okay. My last one is apologize if you want to finish up. Yes, I'm coming to talk about McDonald's. She missed using our water. 86 00:06:15,480 --> 00:06:25,460 If you happen to pass by McDonald's early in the morning hours, they are using water to clean their parking lots every morning every day for over an hour, almost two hours. 87 00:06:26,120 --> 00:06:36,100 Why are city residents put on water restrictions, but billion dollar corporations like McDonald's are able to use our city water every day for hours just to clean their greasy parking lot. 88 00:06:36,520 --> 00:06:39,180 There are a billion dollar company that can afford leaf blowers. 89 00:06:39,640 --> 00:06:43,100 I think that we should have McDonald's get leaf blowers to clean the parking lots instead 90 00:06:43,100 --> 00:06:44,880 of using our water every day. 91 00:06:45,600 --> 00:06:46,320 Thank you. 92 00:06:46,580 --> 00:06:47,280 Thank you so much. 93 00:06:47,360 --> 00:06:51,780 And if you'd like, if you want to leave your information, maybe with Ms. Julie in the back, 94 00:06:51,900 --> 00:06:53,900 and maybe staff can follow up with you on some of the items. 95 00:06:54,580 --> 00:06:55,400 Thank you, ma'am. 96 00:06:56,720 --> 00:07:00,160 Lorraine Villegas wants to visit about smart water meters. 97 00:07:00,660 --> 00:07:01,840 Thank you for being here, Lorraine. 98 00:07:02,500 --> 00:07:02,980 Ms. Villegas. 99 00:07:06,720 --> 00:07:07,500 Hello again. 100 00:07:07,880 --> 00:07:08,060 Hello. 101 00:07:08,780 --> 00:07:14,860 Just to pick up on what and how look I was talking about, about the smart waters and water usage, 102 00:07:15,500 --> 00:07:19,380 multi-million dollar companies, if not billion dollar companies using our water, but yet 103 00:07:19,380 --> 00:07:22,960 we're rationing the hard worker working class who pays taxes. 104 00:07:25,400 --> 00:07:27,960 And I know we already have smart water meters. 105 00:07:28,380 --> 00:07:32,320 Last time I came, I thought we didn't, and then I learned that we were just going to get 106 00:07:32,320 --> 00:07:32,820 more of them. 107 00:07:33,400 --> 00:07:35,420 And now I'm learning that we need more of them. 108 00:07:35,420 --> 00:07:39,600 So what's the goal and what are we, what are we doing with the smart meters and also? 109 00:07:40,440 --> 00:07:46,860 Well, I understand that smart meters are intended to act as a solution to monitor water use 110 00:07:46,860 --> 00:07:50,600 because it's critical and I know there's a lot of projects coming up such as decalination, 111 00:07:50,600 --> 00:07:56,320 SMRs, and a bunch of things that you guys are all advocating for. But sticking to the water, 112 00:07:57,480 --> 00:08:02,900 the majority of you guys were in office whenever this specific thing happened. 113 00:08:02,900 --> 00:08:14,720 And when the ranchers sold water rights, equating about 11.6 million barrels of fresh water 114 00:08:14,720 --> 00:08:15,240 annually. 115 00:08:16,080 --> 00:08:19,200 So, what are you guys going to do to prevent another water grab such as that? 116 00:08:19,460 --> 00:08:24,200 Are you going to work as diligently to prevent things such as that as you are pushing these 117 00:08:24,200 --> 00:08:26,020 things into our communities that we are funding? 118 00:08:27,020 --> 00:08:28,960 Are you guys listening to the community about anything? 119 00:08:29,780 --> 00:08:35,360 But because these are important conversations in regards to if you oppose them or support them 120 00:08:35,360 --> 00:08:41,560 I think the conversations need to be have they need to be had and I know I've heard 121 00:08:41,560 --> 00:08:47,420 a couple of you guys admit that you don't know really much about the technology I myself 122 00:08:47,420 --> 00:08:52,360 don't either but if there's something that you don't know look into it research learn talk 123 00:08:52,360 --> 00:08:56,560 to your community about what's being said don't just shake your head yes involve your 124 00:08:56,560 --> 00:08:59,360 had yes because the other commissioners are wobbling their head. Yes, we didn't elect 125 00:08:59,360 --> 00:09:02,380 you to be a bobblehead. We had to elect you to represent the people and your constituents, 126 00:09:02,460 --> 00:09:08,140 the hardworking. We work hard here and we pay a lot of taxes. So I just, I would like 127 00:09:08,140 --> 00:09:11,920 to see more engagement on how look it was talking about the flat cameras. Has there been 128 00:09:11,920 --> 00:09:16,700 any public hearing or meeting or town hall meeting the only time I, maybe I'm mistaken, 129 00:09:16,700 --> 00:09:20,200 the only time I've ever seen you guys hold a town hall meeting was whenever they wanted 130 00:09:20,200 --> 00:09:26,060 to have the 5G tower in Westminster. So do we have to live in Westminster to have more 131 00:09:26,060 --> 00:09:27,240 engagement for the public. 132 00:09:29,180 --> 00:09:30,280 Anyways, God bless you guys. 133 00:09:30,640 --> 00:09:31,180 Thank you. 134 00:09:31,500 --> 00:09:32,060 Thank you. 135 00:09:32,160 --> 00:09:36,180 Also, in regard to some of that, maybe you could, some of the details there. 136 00:09:36,680 --> 00:09:39,400 Maybe they could follow up with you if you leave your information with Ms. Julie also. 137 00:09:40,200 --> 00:09:40,960 Thank you so much. 138 00:09:41,500 --> 00:09:42,480 All right, consent agenda. 139 00:09:42,780 --> 00:09:44,960 The consent agenda is approved by a single motion. 140 00:09:45,060 --> 00:09:48,480 Any member of the commission may request an item to be transferred to the regular agenda 141 00:09:48,480 --> 00:09:52,340 from the consent agenda without discussion or vote will entertain a motion. 142 00:09:53,140 --> 00:09:59,860 Moved by Mayor Pro Tem, Joe Calderon, seconded by Commissioner Dwayne Pennick. 143 00:10:02,960 --> 00:10:03,680 His 144 00:10:08,610 --> 00:10:10,890 vote is in progress, and 145 00:10:13,540 --> 00:10:14,700 it has passed 7-0. 146 00:10:15,260 --> 00:10:24,300 Now for the discussion item, we'll have City Manager Manigomiz, Finance Director, Deb 147 00:10:24,300 --> 00:10:31,080 Corral, and Assistant City Manager Todd Randall for long-term financial sustainability options. 148 00:10:31,080 --> 00:10:37,800 So as we talk through this, this is a very important item if the commission will indulge 149 00:10:37,800 --> 00:10:38,420 all of us here. 150 00:10:38,820 --> 00:10:40,080 We'd like you to make your presentation. 151 00:10:40,480 --> 00:10:46,440 I'd like to say a few words and then me commissioner can chime in or any input or any questions 152 00:10:46,440 --> 00:10:46,960 along the way. 153 00:10:47,260 --> 00:10:47,600 Mr. Gomez. 154 00:10:47,860 --> 00:10:51,420 Good evening, mayor commissioner, staff and members of the public. 155 00:10:51,420 --> 00:10:53,300 I want to thank you for this opportunity. 156 00:10:54,080 --> 00:11:00,540 Tonight, we'd like to discuss something that affects every service the city provides not 157 00:11:00,540 --> 00:11:06,820 just today, but for many years into the future. And that discussion is long-term financial 158 00:11:06,820 --> 00:11:13,620 sustainability. I want to begin with an important point because it sets the tone for everything 159 00:11:13,620 --> 00:11:22,760 that follows. The City of Hobbes is not facing a financial crisis today. However, that didn't 160 00:11:22,760 --> 00:11:27,800 happen by accident. It's a result of decades of conservative 161 00:11:27,800 --> 00:11:32,920 budgeting, responsible financial management, strategic 162 00:11:32,920 --> 00:11:38,300 investments, and the hard work of many city commissions, city 163 00:11:38,300 --> 00:11:42,460 staff, community leaders, who have made sound financial 164 00:11:42,460 --> 00:11:47,180 decisions over the years. Those decisions have placed 165 00:11:47,180 --> 00:11:49,040 these harms and a strong position. 166 00:11:50,020 --> 00:11:53,160 The good financial management doesn't stop 167 00:11:53,160 --> 00:11:54,940 in maintaining today's budget. 168 00:11:56,060 --> 00:12:00,080 Good financial management means looking at 5, 10, 169 00:12:00,320 --> 00:12:02,980 and even 20 years into the future. 170 00:12:03,960 --> 00:12:07,920 It means identifying trends before they become problems 171 00:12:08,940 --> 00:12:12,660 and making thoughtful decisions when we have those choices. 172 00:12:13,560 --> 00:12:16,100 And that's exactly why we're having this discussion tonight, 173 00:12:16,100 --> 00:12:20,880 mayor and commission. Several years ago House Bill 6 changed the way 174 00:12:20,880 --> 00:12:25,560 growth receipt tax revenues are distributed throughout New Mexico. Although 175 00:12:25,560 --> 00:12:31,300 Hobbes continues to serve as the commercial, the retail, the employment and 176 00:12:31,300 --> 00:12:36,320 service center for South Eastern New Mexico, that legislation permanently 177 00:12:36,320 --> 00:12:41,340 changed a revenue stream that had historically helped fund municipal 178 00:12:41,340 --> 00:12:48,440 operations and infrastructure. Since then additional changes have occurred. In 179 00:12:48,440 --> 00:12:55,220 2022 and 2023, the state reduced its portion of the Grocery seed tax, 180 00:12:55,620 --> 00:13:02,320 ignoring the total Grocery seed tax rate and knobs from 6.8125% to the 181 00:13:02,320 --> 00:13:10,980 rate of 6.56 to 5% benefiting the consumer. Today of every dollar grocery 182 00:13:10,980 --> 00:13:18,580 seed tax collected in Hobbes the state receives 4.875% while the city 183 00:13:18,580 --> 00:13:26,960 receives 1.4375%. What is the cost to our citizens? Out of a hundred dollar 184 00:13:26,960 --> 00:13:40,740 purchase the taxes $6.56. The state receives $3.65 of that $6.56 and the city receives $2.66. 185 00:13:42,040 --> 00:13:48,620 Another important fact is that the city's municipal gross receipts tax rate has remained 186 00:13:48,620 --> 00:13:55,360 essentially unchanged since 2000 and to except for the environmental grocery 187 00:13:55,360 --> 00:14:01,920 seat tax that was approved in 2004 that is dedicated slowly for the wastewater 188 00:14:01,920 --> 00:14:10,980 treatment plan debt that went into effect in January 1 of 2005. So let's think 189 00:14:10,980 --> 00:14:17,640 about everything that has changed in more than 22 years. Cost of increased across 190 00:14:17,640 --> 00:14:24,120 construction, equipment, public safety, technology, infrastructure, and staffing. 191 00:14:24,540 --> 00:14:31,100 Our residents now expect more services, advanced technology, and higher levels of 192 00:14:31,100 --> 00:14:36,780 customer service. Yet the city's recurring revenue structure has remained 193 00:14:36,780 --> 00:14:45,640 largely unchanged. Imagine your hourly rate 22 years ago. Now consider today's 194 00:14:45,640 --> 00:14:51,340 cost of living and adding responsibilities while being paid at that same hourly 195 00:14:51,340 --> 00:14:57,580 rate. What would your life look like for the city that this isn't an 196 00:14:57,580 --> 00:14:59,860 imagination. It's real. 197 00:15:00,000 --> 00:15:06,820 Goodie. And that's how we've operated for the last 22 years. When these changes, House Bill 198 00:15:06,820 --> 00:15:16,320 6, inflation, expenditures outpacing revenue, first began affecting city finances, our response 199 00:15:16,320 --> 00:15:24,400 was not to seek additional revenue, it was first to focus on managing expenditures responsibly 200 00:15:24,400 --> 00:15:27,800 and improving operational efficiency. 201 00:15:28,120 --> 00:15:30,560 We asked ourselves an important question, 202 00:15:31,220 --> 00:15:32,580 what can we do better? 203 00:15:33,860 --> 00:15:37,120 We prioritize critical needs through advanced planning, 204 00:15:37,860 --> 00:15:43,640 eliminated and consolidated approximately 110 vacant positions 205 00:15:43,640 --> 00:15:48,400 through attrition and what we call organizational right sizing. 206 00:15:49,380 --> 00:15:53,880 Improve operational efficiencies through organizational changes 207 00:15:53,880 --> 00:16:00,840 and technology, deferred selected capital projects and equipment replacement, maintain 208 00:16:00,840 --> 00:16:08,920 healthy cash reserves and liquidity, aggressively pursued grants, strengthen partnerships, we 209 00:16:08,920 --> 00:16:15,340 looked at every opportunity to reduce costs while protecting services, and those efforts 210 00:16:15,340 --> 00:16:23,280 worked. They allowed us to maintain the financial stability while minimizing impacts on our 211 00:16:23,280 --> 00:16:29,220 residents. We believe that's exactly what responsible government should do before 212 00:16:29,220 --> 00:16:35,680 considering any additional revenue options. But there's also reality that we 213 00:16:35,680 --> 00:16:42,740 almost recognize efficiencies have limits. Grants are temporary. One-time funding 214 00:16:42,740 --> 00:16:49,460 eventually disappears and reserve balances are designed to provide financial 215 00:16:49,460 --> 00:16:57,300 stability during emergencies, not to permanently support recurring operating expenses. 216 00:16:58,480 --> 00:17:03,100 As Hobbes grows, so do the cost of maintaining that growth. 217 00:17:03,900 --> 00:17:05,700 Streets, they're going to need repair. 218 00:17:06,500 --> 00:17:08,660 Parks and facilities, we've got to upkeep them. 219 00:17:08,840 --> 00:17:11,480 We just heard constituents talk about that. 220 00:17:11,960 --> 00:17:18,640 Technology and equipment must be replaced and infrastructure requires continued investment. 221 00:17:18,640 --> 00:17:22,460 and these investments, they're not extraordinary expenses. 222 00:17:23,160 --> 00:17:28,240 They are simply the ongoing responsibilities of operating a growing community. 223 00:17:29,280 --> 00:17:33,560 Another important consideration is the role that Hobbes plays throughout 224 00:17:33,560 --> 00:17:39,000 Southeastern New Mexico. Although our resident population is approximately 225 00:17:39,000 --> 00:17:45,340 50,000 people, available mobility and consumer activity data 226 00:17:45,340 --> 00:17:51,400 indicate that our daytime population routinely grows to approximately 75,000. 227 00:17:52,560 --> 00:17:55,100 Thousands of people come to Hobbes every day. 228 00:17:55,720 --> 00:17:59,040 They work, they shop, and they attend events here. 229 00:17:59,780 --> 00:18:02,420 They conduct business here, they dine in our restaurants, 230 00:18:03,120 --> 00:18:06,520 they visit our parks and facilities, they use our streets, 231 00:18:07,140 --> 00:18:11,440 benefit from our police officers, firefighters, emergency services, 232 00:18:11,920 --> 00:18:13,320 and our infrastructure. 233 00:18:13,320 --> 00:18:17,880 That regional activity is one of Hobbes' greatest strengths. 234 00:18:18,540 --> 00:18:24,340 It supports local businesses, creates jobs, and drives economic development. 235 00:18:25,520 --> 00:18:31,420 Our responsibility as staff is not to recommend a solution based on convenience. 236 00:18:32,410 --> 00:18:40,480 Our responsibility is to evaluate which options best position the city of Hobbes for long-term 237 00:18:40,480 --> 00:18:46,100 financial sustainability while maintaining the quality of services that our 238 00:18:46,100 --> 00:18:53,520 residents deserve and what our residents expect. So tonight's discussion really 239 00:18:53,520 --> 00:18:58,520 comes down to one question. Here's our long-term revenue structure line with 240 00:18:58,520 --> 00:19:02,880 the long-term responsibilities of a growing regional service center. 241 00:19:06,460 --> 00:19:06,940 That is the 242 00:19:06,940 --> 00:19:11,660 question before us. Now whether we have a crisis, now whether we have managed our 243 00:19:11,660 --> 00:19:18,180 finances responsibly because we have. The question is whether we should evaluate our financial 244 00:19:18,180 --> 00:19:25,380 structure, but we have options available to us. History tells us that the best organizations 245 00:19:25,380 --> 00:19:32,480 prepare before they are forced to react. And that's exactly Mayor Commission staff members 246 00:19:32,480 --> 00:19:41,160 of the public what responsible financial stewardship requires. We owe it to future generations 247 00:19:41,460 --> 00:19:47,960 to ensure that they inherit a city with strong public safety, well maintained infrastructure, 248 00:19:48,620 --> 00:19:56,580 healthy finances, vibrant community partnerships and the ability to continue growing. I appreciate 249 00:19:56,580 --> 00:20:03,160 you mayor the commissions will need us to engage in this conversation and at this time I'm going to ask 250 00:20:03,860 --> 00:20:11,240 city staff, Todd Randall or assistant city manager and dev corral finance director to share 251 00:20:11,240 --> 00:20:17,300 the numbers and the graphs that will help explain and justify what we're having this discussion tonight. 252 00:20:17,620 --> 00:20:23,320 Thank you mayor commission thank you man. Thank you mayor commission thank you for that introduction. 253 00:20:23,320 --> 00:20:28,440 I want to thank Deb, I want to thank Jan and the C-Mandor's Office for assistance putting 254 00:20:28,440 --> 00:20:29,000 us together. 255 00:20:29,680 --> 00:20:36,740 Financial sustainability and revenue options, so many touches, as far as HB6, revenue 256 00:20:36,740 --> 00:20:37,180 change. 257 00:20:37,580 --> 00:20:40,020 Our responsibility didn't and we did response. 258 00:20:40,440 --> 00:20:45,740 Many mentioned as far as the 110 positions eliminated and consolidated, changes to budgeted 259 00:20:45,740 --> 00:20:51,740 hours only as far as seasonal staffing, technology and operating efficiencies were implemented, 260 00:20:51,740 --> 00:20:57,320 And we have addressed as far as some fees for the core and the golf course recently. 261 00:20:57,880 --> 00:20:59,360 There has been deferred capital. 262 00:20:59,760 --> 00:21:04,420 And again, we always look for any kind of grants for our program capital expenditures. 263 00:21:05,360 --> 00:21:08,200 This next slide is a slide that EDC shared. 264 00:21:08,640 --> 00:21:16,980 And I particularly like it because it gives us a good background as far as the difference between pre-HB6 which mining, 265 00:21:17,280 --> 00:21:19,760 which is here in the red at the very top of those columns, 266 00:21:19,760 --> 00:21:27,500 was our biggest GRT contributor. You can also see everything to the left of this red line, 267 00:21:27,920 --> 00:21:34,940 the very ups and downs as far as fluctuation with the revenue. This is all illustrated in 268 00:21:34,940 --> 00:21:42,380 2026 dollars. So if you look at after HB6, you can see that the red has significantly reduced 269 00:21:42,380 --> 00:21:48,900 and even reduced every year since HB6 because that changed as far as those oil and gas businesses 270 00:21:48,900 --> 00:21:55,340 inside sea limits where we would obtain the GRT from them being source-based as far as destination 271 00:21:55,340 --> 00:22:01,820 of the services. At today, retail is our number one. Even in a downturn, you can still see that 272 00:22:01,820 --> 00:22:06,720 retail dips and we just haven't seen a downturn at all of the gas to really be able to predict as far 273 00:22:06,720 --> 00:22:14,300 as what kind of revenue limitations we would have. The biggest thing to see here is that revenue has 274 00:22:14,300 --> 00:22:19,520 flatline compared to the windfall that we would have for large projects. If we 275 00:22:19,520 --> 00:22:25,820 go to 2014 and we had the same sort of economy, which we're very busy with 276 00:22:25,820 --> 00:22:32,500 oil and gas right now, then today's numbers that would be over 115 million. 277 00:22:33,180 --> 00:22:35,500 Now we're floating just above 60 million. 278 00:22:39,510 --> 00:22:44,070 So the AmeriCobb champion as far as going to 279 00:22:44,070 --> 00:22:48,710 to the legislature and trying to explain as far as impacts to Carlsbad and the City Hobbes. 280 00:22:49,410 --> 00:22:53,550 When the state analysts reviewed this, they didn't want to look at our revenue streams. 281 00:22:54,030 --> 00:22:56,070 They didn't want to talk about how much revenue we lost. 282 00:22:56,630 --> 00:23:00,530 They wanted to look at our economic engine, so that's how many dollars that have been spent 283 00:23:00,530 --> 00:23:03,630 per capita so that it can compare us to every other community in the state. 284 00:23:04,410 --> 00:23:11,610 So here in blue, at the top, is Carlsbad, and just below that, prior to HP6 FY 2019, is 285 00:23:11,610 --> 00:23:12,310 the City Hobbes. 286 00:23:12,310 --> 00:23:14,390 So, this green line is sea hops. 287 00:23:15,070 --> 00:23:19,850 This is only populations of over 7,000 because if you get some of these smaller populations 288 00:23:19,850 --> 00:23:20,970 it gets very skewed. 289 00:23:21,430 --> 00:23:27,650 For example, a elementary school's built in their community, there's just a huge influx. 290 00:23:28,390 --> 00:23:31,130 So, basically they said, hey, you're still number six in the state. 291 00:23:31,830 --> 00:23:35,890 And so, what they were trying to say was you still have a good economic engine. 292 00:23:36,590 --> 00:23:40,330 What they were getting at is we have one of the lowest year T's in the state in Mexico. 293 00:23:40,330 --> 00:23:42,670 So basically, you can fix your own problem. 294 00:23:43,390 --> 00:23:45,230 You have a good economic engine. 295 00:23:46,110 --> 00:23:50,950 Most communities at 6 would say that would be jealous of us. 296 00:23:53,580 --> 00:23:55,240 Again, no relief from the state. 297 00:24:01,340 --> 00:24:04,920 So, this next graph is looking at our gross receipts. 298 00:24:05,040 --> 00:24:07,880 These are actual gross receipts that we received. 299 00:24:08,240 --> 00:24:12,420 I was trying to figure out when we were putting this presentation together, 300 00:24:13,020 --> 00:24:16,200 what the trend in our growth has been since House Bill 6. 301 00:24:16,200 --> 00:24:25,700 I wanted to see if there was any uptick that was pretty consistent that I could use to forecast and what I found was we're all over the place. 302 00:24:26,460 --> 00:24:38,060 So, what this is showing you is if you look at 2019, that's the largest graph up, we received $66 million and it was a 31% increase from the prior year. 303 00:24:38,800 --> 00:24:42,220 And then in 2020, we received $64 million. 304 00:24:42,220 --> 00:24:53,860 was a negative 2%. Then we had 2021. We had a negative 32% where we received only $44 million in GRT. 305 00:24:54,580 --> 00:25:01,740 What this tells me is we're safe at our 30% reserve because that's the kind of swing that we see. 306 00:25:02,480 --> 00:25:11,720 And since House Bill 6, the last were pieces of that graph. I was looking for an upward trend because that's what happens 307 00:25:11,720 --> 00:25:14,540 to our revenue and our, to our expenditures, right? 308 00:25:14,920 --> 00:25:18,760 They increase every year, but we're not seeing that here. 309 00:25:19,300 --> 00:25:25,040 We're seeing 3%, 2%, 8%, 6%, so it's really hard to forecast. 310 00:25:25,720 --> 00:25:27,800 So we have to be conserved in our budgeting 311 00:25:27,800 --> 00:25:29,940 because we just don't know where we're going to land. 312 00:25:33,460 --> 00:25:38,580 So hops is in a crisis today, but return revenue must keep pace. 313 00:25:38,580 --> 00:25:55,020 So, debt kind of hit the state's mandatory reserves is 112 or 8.33% because the prior leadership, as said with the flux of income with oil and gas, we adopted a minimum of 30%. 314 00:25:55,020 --> 00:26:03,240 The FY27 plenary budget, we said at 35%, the FY27 final was actually 45%, and anything 315 00:26:03,240 --> 00:26:09,460 above the 30 gets reprogrammed as far as additional capital, because with the FY27 budget, 316 00:26:09,620 --> 00:26:13,420 we cut a significant capital, and we'll show that later in the slide. 317 00:26:16,230 --> 00:26:19,850 So when we talk about revenue for the city of Hobbes, there's multiple levers. 318 00:26:19,850 --> 00:26:25,590 gross receipts tax is probably our well is our broadest based as more of a 319 00:26:25,590 --> 00:26:32,690 regional effect lease-consistrated impact be for services such as the 320 00:26:32,690 --> 00:26:38,230 golf and the core that directly hits those people using those fees but 321 00:26:38,230 --> 00:26:43,370 historically we try to keep those things affordable because we may affect 322 00:26:43,370 --> 00:26:49,370 access and can't and obviously fees can't fund every essential service grants 323 00:26:49,370 --> 00:26:54,270 some partnerships. We've been partnering with the county. We've been seeking any kind of grants 324 00:26:54,270 --> 00:26:59,210 we have as far as our capital improvements. Very generous to our senators and representatives on 325 00:26:59,210 --> 00:27:04,530 capital outlay. Last few years we've gotten more than what we have in historically. A lot of those 326 00:27:04,530 --> 00:27:11,030 from the effects of HB6. Property tax is one of the most stable, but any kind of increase of property 327 00:27:11,030 --> 00:27:17,930 tax directly affects local business owners or individuals with their own homes. And then we have 328 00:27:17,930 --> 00:27:23,050 utility rates. And those are typically closest thing to business is our water and sewer enterprise 329 00:27:23,050 --> 00:27:28,570 fund. So the utility rates that we charge pay for all the services, pay for replacement of 330 00:27:28,570 --> 00:27:35,330 existing infrastructure. But typically we don't use those rates for growth infrastructure. When 331 00:27:35,330 --> 00:27:41,390 we're talking about new replacement of waste for our treatment plants or the expansion of it, 332 00:27:41,850 --> 00:27:46,070 that really was why the environmental tax was directed towards that. We did have to do a rate 333 00:27:46,070 --> 00:27:51,410 increase for that, but we also directed that environmental tax directly to that to help 334 00:27:51,410 --> 00:27:56,070 subsidize the ratepayers didn't have to take a burden on everything. For example, we 335 00:27:56,070 --> 00:28:00,990 need additional waterflowers, too, in fact, plus we need additional wells and well fields. 336 00:28:01,730 --> 00:28:06,670 The last one that we haven't really pursued but has been brought up by the Commission 337 00:28:06,670 --> 00:28:12,930 is potential and excise tax. That's potentially targeting a specific source, and then also 338 00:28:12,930 --> 00:28:15,310 so we would have to dedicate that to specific use. 339 00:28:17,660 --> 00:28:24,500 So diving into GRT only, or GRT, or general fund revenue, totally. 340 00:28:25,080 --> 00:28:29,340 GRT represents 76%, that's going to be this big blue. 341 00:28:30,240 --> 00:28:33,960 Property tax is about 5% or 4.3. 342 00:28:34,580 --> 00:28:36,640 When we talk about fees or ingesting fees, 343 00:28:36,960 --> 00:28:40,060 which includes franchise fees, is about 5.5. 344 00:28:40,060 --> 00:29:06,860 We do have some grants that are going to the journal fund for capital or for operations and the biggest one is funding from the county for the airline for the airline for the airline and then others are just small amounts as far as and PD purchase both proof vest the library and then we have other which includes donation to the animal adoption center. 345 00:29:06,860 --> 00:29:11,720 There are some miscellaneous fees and permits associated with that one, but you can see 346 00:29:12,200 --> 00:29:14,280 GRTUs are the biggest driver for the journal fund. 347 00:29:14,900 --> 00:29:18,940 We won't be talking about utility fund, are the rates, we're going to be sticking strictly 348 00:29:18,940 --> 00:29:19,920 with the journal fund. 349 00:29:23,860 --> 00:29:24,660 Turned over to that? 350 00:29:27,000 --> 00:29:32,060 So, what we're looking at here is our preliminary budget, so important to note that we are talking 351 00:29:32,060 --> 00:29:33,380 budget on this slide. 352 00:29:33,940 --> 00:29:39,040 So, we have a list of four years for you just to give you some sort of a trending of what 353 00:29:39,040 --> 00:29:42,680 But our revenue looks like this is for general fund only. 354 00:29:44,480 --> 00:29:48,220 So we have a column that gives you our total estimated revenues. 355 00:29:49,020 --> 00:29:53,480 And then we give you a column for transfer so that reduces our revenue because we're sending 356 00:29:53,480 --> 00:29:57,160 not money to other funds core golf cemetery. 357 00:29:57,820 --> 00:29:59,900 So then we have, in the next column, 358 00:30:00,000 --> 00:30:25,080 Are available general fund revenue. So this is net of the transfers. And the next one in red is your payroll and operating expense. Again, there's no capital in this budget. Just payroll and operating expense. And what we see here is that we're budgeting our revenue conservatively. We're budgeting 100% of the budgeted positions 100% of the operating needs expressed by the departments. 359 00:30:25,080 --> 00:30:30,860 and we're spending in 2023, 115% of our revenue. 360 00:30:31,440 --> 00:30:33,900 So that means we're spending savings. 361 00:30:34,200 --> 00:30:35,980 We're budgeted to spend savings. 362 00:30:36,680 --> 00:30:39,040 And you'll see that trend tighten up a little bit. 363 00:30:39,040 --> 00:30:44,600 In 2024, it was 116%, and then with a change in our budgeting practices 364 00:30:44,600 --> 00:30:49,260 and us consolidating positions and making things more efficient, 365 00:30:49,480 --> 00:30:53,940 you see our numbers come down a little to 103 and 107%. 366 00:30:54,680 --> 00:30:57,680 On the next slide, we're talking actuals. 367 00:30:57,960 --> 00:31:03,360 So this is actual, cash received, and actual operating expense. 368 00:31:03,600 --> 00:31:06,660 The paychecks for the employees, the paychecks for the light bills. 369 00:31:07,520 --> 00:31:12,400 So again, we have the same type of columns, total revenue, transfers to other funds, 370 00:31:12,660 --> 00:31:17,240 operating expense only, giving us an available general fund revenue. 371 00:31:17,540 --> 00:31:23,520 When we're looking at 2023 again, we had $67.2 million in revenue. 372 00:31:23,520 --> 00:31:29,580 so we came in higher than our budget and revenue, we came in lower than our budget in payroll 373 00:31:29,580 --> 00:31:37,860 and operating at 56 million, which means we only spent 83%. That's keeping in mind that that 374 00:31:37,860 --> 00:31:44,820 was before we were making all of our changes. You see that shrink a little bit in 2025, 2026, 375 00:31:44,820 --> 00:31:49,520 six were 82%. This will change as those vacancies are filled out. 376 00:31:53,250 --> 00:31:55,010 So when you're figuring payroll, 377 00:31:55,730 --> 00:31:58,590 are you figuring all what is budgeted for payroll? 378 00:31:58,930 --> 00:32:01,830 Are you figuring that based on the flowback as well? 379 00:32:02,010 --> 00:32:02,210 Are you? 380 00:32:02,970 --> 00:32:05,490 Is that's a good point because I think what Commissioner 381 00:32:05,490 --> 00:32:07,630 Penex leading to, if I can jump in with him, 382 00:32:07,810 --> 00:32:11,570 is that now that we're seeing what Chief Jones is doing 383 00:32:11,570 --> 00:32:14,290 in the police department, that flowback's going to disappear. 384 00:32:14,290 --> 00:32:20,590 here. Exactly. So we could be a lot closer to 100% if we're filling all those positions 385 00:32:20,590 --> 00:32:24,750 and paying all the extra salary. So that number is going to get higher. 386 00:32:26,250 --> 00:32:31,990 Point. And if I may mayor and commissioner Pinnick, our common practice and policies has 387 00:32:31,990 --> 00:32:38,910 been that we budget the number of staff that have been identified needed. So the previous 388 00:32:38,910 --> 00:32:43,590 this slide showed the budget and what percentage would be if they were all filled. 389 00:32:44,430 --> 00:32:44,670 Exactly. 390 00:32:45,470 --> 00:32:46,190 Thank you, ma'am. 391 00:32:46,250 --> 00:32:46,530 Good points. 392 00:32:46,690 --> 00:32:46,930 Thank you. 393 00:32:47,110 --> 00:32:48,010 That's a good point, Commissioner. 394 00:32:50,850 --> 00:32:54,530 So, Jert is the largest and broadest revenue generator. 395 00:32:55,290 --> 00:32:58,590 So, it's a broad tax base across taxable purchases and services. 396 00:32:58,970 --> 00:33:05,850 It has a regional spending impact as far as visitors, non-residents, contributing to the money that they spend. 397 00:33:06,850 --> 00:33:14,450 It's less contract concentrated, broader than property tax fees or utility increases, but there's still a public impact. 398 00:33:15,310 --> 00:33:20,290 So any kind of GRT increase, businesses will just pass that GRT through purchases. 399 00:33:21,150 --> 00:33:26,970 Want to note that there is no GRT on qualified groceries, vehicle fuel, and certain medical. 400 00:33:27,550 --> 00:33:30,690 That's something the state did several years back. 401 00:33:30,690 --> 00:33:35,890 And there used to be a hold harmless where we got to separate distribution of dollars to make us hold with that 402 00:33:36,690 --> 00:33:44,790 The state since then has dissolved that and phased it out and so we no longer get the hold harmless as far as for food and medical 403 00:33:46,790 --> 00:33:47,930 Medical and fear 404 00:33:48,570 --> 00:33:54,810 Yeah, I feel and because any time you start talking about GRT increase everybody's gonna go to those basic 405 00:33:56,070 --> 00:34:00,230 Commodities and just want to point that out as far as that's something the state did several years ago 406 00:34:00,230 --> 00:34:01,810 by removing tax on those. 407 00:34:03,890 --> 00:34:09,450 So when we look at General Fund, many mentioned it as far as this is breakdown of all the 408 00:34:10,030 --> 00:34:13,830 different funding sources, or the breakdown of the GRT. 409 00:34:14,410 --> 00:34:22,910 So at 6.56125, the state gets 3.65, the state actually shares 1.225, and that makes up 410 00:34:22,910 --> 00:34:23,710 part of the General Fund. 411 00:34:23,710 --> 00:34:32,810 And I should note this is that when they changed from location of business to destination, which is all outside C limits, 412 00:34:34,490 --> 00:34:38,190 10 or 8 of our top 10 GRT producers were on gas. 413 00:34:38,850 --> 00:34:47,350 And the reason that the state would share that portion with us is because that business located inside C limits in our services and support as far as those people. 414 00:34:47,350 --> 00:34:49,790 So, that business still is inside sea limits. 415 00:34:50,130 --> 00:34:55,830 We just no longer get our local option or the state share, the state gained 30% by getting 416 00:34:55,830 --> 00:34:58,090 the key that portion of it for themselves. 417 00:34:58,970 --> 00:35:00,750 The other is the local option. 418 00:35:00,910 --> 00:35:04,730 The last time a local option was done by the city of Haas for general purposes. 419 00:35:05,830 --> 00:35:07,770 Madam Clerk was in the 90s? 420 00:35:08,010 --> 00:35:08,430 93. 421 00:35:09,130 --> 00:35:09,470 93. 422 00:35:09,630 --> 00:35:09,870 93. 423 00:35:10,290 --> 00:35:18,010 So the local option that's the previous commission that adopted is 1.22 or 1.25. 424 00:35:18,630 --> 00:35:25,670 This is also general fund and then many mentioned the infrastructure tax in 2001 dedicated 425 00:35:25,670 --> 00:35:31,890 to infrastructure and then the environmental tax at 0.0625 dedicated to utility debt and 426 00:35:31,890 --> 00:35:35,830 then the county still receives 0.25 whether inside or outside ceilings. 427 00:35:36,510 --> 00:35:41,570 That's kind of been a misnomer that people thought this county gained. 428 00:35:41,870 --> 00:35:44,590 They had .25 across the entire county. 429 00:35:45,310 --> 00:35:51,010 One thing they did gain was, I believe, a 1-16th environmental tax, but it's a small 430 00:35:51,010 --> 00:35:51,370 amount. 431 00:35:51,630 --> 00:35:54,250 So they've always kept the 1.25 with the tax change. 432 00:35:54,830 --> 00:35:58,130 Where, remind me where the lead of taxes and these buckets. 433 00:35:58,630 --> 00:36:04,990 So we adopted the lead of ordinance, and we took it to vote for retail. 434 00:36:04,990 --> 00:36:13,410 We never implemented the lead attacks, so we've only been using a general fund, which we can go to 10% of our 435 00:36:13,410 --> 00:36:14,530 general funds that we've 436 00:36:15,190 --> 00:36:21,170 cordoned off so far have really just come out of what otherwise would be general fund. 437 00:36:21,650 --> 00:36:29,250 Correct, correct. So that that point 2.5 is already available if we enacted that four 438 00:36:29,250 --> 00:36:36,090 leader and then in lieu of shift and money from the general fund today for that purpose that 439 00:36:36,090 --> 00:36:41,530 tax could be used for that. And that's above and above anything that we're talking here is 440 00:36:41,530 --> 00:36:42,150 first year correct. 441 00:36:44,490 --> 00:36:49,010 And one thing as far as any kind of leader tax and you probably saw in the 442 00:36:49,010 --> 00:36:54,750 paper as far as something the Tatum's looking at is that .25 leader that has to go to public vote. 443 00:36:55,450 --> 00:36:56,710 So that's my statute. 444 00:36:57,710 --> 00:37:03,030 I think it's important also that we let the public understand that when we lost the destination 445 00:37:03,030 --> 00:37:08,170 tax through all these city-based businesses and the welfare companies that are doing services 446 00:37:08,750 --> 00:37:14,630 outside city limits, they use all of our streets, all of our EMS services, our fire department, 447 00:37:14,850 --> 00:37:20,770 our police department, all the things that they're using within our city, they're not having 448 00:37:20,770 --> 00:37:24,930 to pay anything for. Now, and I personally think it's a 449 00:37:24,930 --> 00:37:28,290 travesty that the state, I feel like the state stole that 450 00:37:28,290 --> 00:37:31,650 money from the city of Hobbes. But I think it's important that 451 00:37:31,650 --> 00:37:34,830 they know that we've lost that funds. Those bad decisions. 452 00:37:35,150 --> 00:37:37,170 Those businesses still are in size limits. 453 00:37:37,410 --> 00:37:39,950 Right. That's actually right. Good points. Very good. 454 00:37:41,050 --> 00:37:44,450 So when we, we've talked about the journal fund, we've talked 455 00:37:44,450 --> 00:37:48,230 about payroll and operating. And what we haven't talked 456 00:37:48,230 --> 00:37:52,070 about it all is all those numbers previously didn't have any kind of capital 457 00:37:52,070 --> 00:37:56,950 improvements. So if we look at our ICIP for the which is a five-year plan there's 458 00:37:57,470 --> 00:38:03,010 363 million of unfunded projects. And I'm not going to talk about all of them 459 00:38:03,010 --> 00:38:07,810 because the ICIP sometimes can turn into a wish list with a lot of added 460 00:38:07,810 --> 00:38:11,250 service, a lot of quality life improvements. So we're only going to talk about the 461 00:38:11,250 --> 00:38:16,730 basics which right now the goal has been to do about $10 million per year in 462 00:38:16,730 --> 00:38:22,150 roadway street improvements. This is just maintenance and talking with Sheila in the study that was 463 00:38:22,150 --> 00:38:27,150 done for our streets to actually make an improvement right now. We have a PCI which is pavement 464 00:38:27,150 --> 00:38:33,910 condition index of in the 50s to actually make on a scale of 1 to 100 to actually make improvements 465 00:38:33,910 --> 00:38:39,310 and get that into the 70s. We need a lot more reconstruction of pavement, not just maintenance. 466 00:38:39,990 --> 00:38:45,530 So estimated about 20 million dollars a year over the next 10 years. So that's a hundred million 467 00:38:45,530 --> 00:38:50,230 dollars for next five years. If we're looking at facilities and just maintain our facilities 468 00:38:50,230 --> 00:38:57,090 and talk about buildings, just to say at a fair condition, that's about $2 million or $10 million 469 00:38:57,090 --> 00:39:02,410 over the next five years, doesn't include adding any kind of new facility. I should mention 470 00:39:02,410 --> 00:39:06,650 as far as roadways, that doesn't include drainage improvement sidewalks, ADM improvements, 471 00:39:06,910 --> 00:39:10,970 new roadways, or even lane expansions. That's the maintained existing roadways we have. 472 00:39:11,850 --> 00:39:15,410 We've recently finalized a water and sewer master plan. 473 00:39:15,950 --> 00:39:20,510 This is all related to water and sewer and future growth infrastructure, which has estimated 474 00:39:20,510 --> 00:39:23,190 about $49 million over the next five years. 475 00:39:23,870 --> 00:39:29,250 Like I said, it includes two water towers, includes a new well-filled, new pumping station, 476 00:39:29,950 --> 00:39:34,850 some strategic sewer line replacements as far as up sizing in order to meet needs. 477 00:39:35,350 --> 00:39:38,590 One of the things that we're looking for the college lane project as far as what do we 478 00:39:38,590 --> 00:39:42,450 need to fully serve college lane with water and sewer. Don't want to do a roadway project 479 00:39:42,450 --> 00:39:47,110 just to tear it up to put utilities later. And then just for our fleet, Sheila provide 480 00:39:47,110 --> 00:39:52,810 this number as far as just to maintain and replace all of our existing fleet, this includes 481 00:39:52,810 --> 00:40:03,690 all lawnmores, kids, deers, large heavy vehicles and then just vehicles for staff. Again, this 482 00:40:03,690 --> 00:40:07,930 This doesn't include anything as far as quality life projects or expansion of any existing 483 00:40:07,930 --> 00:40:08,370 buildings. 484 00:40:11,090 --> 00:40:17,710 So when we look at as far as comparison on state-wide, Hobbes is one of three lowest when 485 00:40:17,710 --> 00:40:20,870 we talk about Miss Palais, Hobbes, Tatum, and Captain. 486 00:40:21,570 --> 00:40:30,770 So if we look on a state-wide comparison, we're at 6.5625, Albuquerque's at 7.625, Santa 487 00:40:30,770 --> 00:40:35,310 the phase or lost cruises of highest on this list at 8.39%. 488 00:40:35,310 --> 00:40:41,050 And just to give comparison, the state of Texas caps as far as what a Miss Paladin can 489 00:40:41,050 --> 00:40:41,290 do. 490 00:40:41,530 --> 00:40:44,810 And so both Midland and Lubbock are at the max at 8.25. 491 00:40:46,430 --> 00:40:52,330 When we look at just South East in Mexico, we're still one of the lowest with Roswell at 492 00:40:52,330 --> 00:41:00,230 the highest 8.2708, Carl's bad actually generates more GRT than the City of Hobbes with a smaller 493 00:41:00,950 --> 00:41:07,770 population. A lot of that has to do with with their GRT rate. And plus they're 494 00:41:07,770 --> 00:41:13,250 taking advantage of warehouse retail. I can't remember exactly that particular one 495 00:41:13,250 --> 00:41:18,590 where they they didn't have as much of a HP 6 impact as we did because you saw 496 00:41:18,590 --> 00:41:24,410 that our keys or crawls bag was still number one. And then when you look at Lee 497 00:41:24,410 --> 00:41:35,550 county, it ranges from Tatumahob's at 6.5625 to JAL, which is at 7.1875. So, what does 498 00:41:36,190 --> 00:41:42,850 a GRT increase look like? So, there's multiple increments. Here, we're looking at one-sixteenth 499 00:41:42,850 --> 00:41:49,150 of an increment. If you'll see the middle highlighted area that says max. The max commission 500 00:41:49,150 --> 00:41:55,190 Commission can do as far as without a public vote, is capping the local option at 2.05. 501 00:41:56,310 --> 00:41:58,510 So each increment is about 1.5 million. 502 00:41:59,190 --> 00:42:04,970 The max at current, at current grocery stores would do you want to repeat that, I think 503 00:42:04,970 --> 00:42:05,690 quite catch that. 504 00:42:05,770 --> 00:42:15,110 So the max that the Commission can do without a public vote is a 2.05% cap. 505 00:42:15,110 --> 00:42:24,550 So that would be an increase of 0.6125 for a GRT rate at 7.1750. That would generate 506 00:42:24,550 --> 00:42:32,210 $14.7 million per year, correct. So there's other incumbents but all these 507 00:42:32,210 --> 00:42:37,630 increments below would have to go to a public vote. So the max as far as with a 508 00:42:37,630 --> 00:42:47,290 local option is 7.6250. The max with a public vote would generate 25.5 million. So just looking 509 00:42:47,290 --> 00:42:53,710 at the max as far as without a public vote, that's going to have an impact of about 61 cents per 510 00:42:53,710 --> 00:42:54,630 hundred dollar purchase. 511 00:42:56,670 --> 00:43:02,090 And again, those increments can be done all at once or the commission can select as 512 00:43:02,090 --> 00:43:04,050 far as an increment that they would like to see. 513 00:43:06,340 --> 00:43:08,640 Todd, I have a question before we move on to the next slide. 514 00:43:12,000 --> 00:43:12,800 House Bill 6. 515 00:43:12,940 --> 00:43:17,580 So possibly how much did the state take from us? 516 00:43:18,560 --> 00:43:23,280 So what shows the best is going back to the chart. 517 00:43:24,400 --> 00:43:28,860 And so we had in 2014 just an enormous revenue. 518 00:43:29,240 --> 00:43:32,100 I mean, that was windfall that you can't even look at. 519 00:43:32,100 --> 00:43:38,840 So historically, Toby and Deb, I think, had stated that anywhere it's from 12 to $17 million 520 00:43:38,840 --> 00:43:39,540 a year. 521 00:43:39,840 --> 00:43:41,280 Did you go back to that last chart? 522 00:43:41,520 --> 00:43:41,620 Yes. 523 00:43:47,790 --> 00:43:55,610 So if the commission were to consider the max, that rate would be 7.1750 and would generate 524 00:43:55,610 --> 00:43:57,170 about $14.7 million. 525 00:43:57,170 --> 00:43:57,590 dollars. 526 00:43:59,950 --> 00:44:11,150 So with that the 61 the impact per $100 be a 61 cent increase. That's important. 527 00:44:11,370 --> 00:44:23,610 So today the consumer pays $6.56. So adding the 61 cents will now pay $7.17. 528 00:44:23,610 --> 00:44:29,790 And how much grocery seats tax every time someone goes to Sam's or Costco in Lubbock? 529 00:44:30,650 --> 00:44:33,930 Third charge 8.25 and whatever, or thank you, gas costs. 530 00:44:34,690 --> 00:44:40,590 There you go. Go on. What I was looking at was that I was just looking at some numbers. 531 00:44:41,630 --> 00:44:48,230 I was looking at it. And if I may mayor and commission feels when you pose the question regarding the effects of House Bill 6 and how 532 00:44:48,230 --> 00:44:53,390 much of state benefit. I attended a city manager, New Mexico City Manager, 533 00:44:53,950 --> 00:44:59,830 Association meeting, and they talked about how state policies have and can 534 00:45:00,020 --> 00:45:29,260 In you to have impact, negative impact on municipalities. In 2025, and they called it and categorize it as the death by a thousand cuts. In 2025, the cuts alone from the state to municipalities led to a hundred million dollars benefiting to the state out of local municipalities. And this is coming from the New Mexico municipal. What did they add when they reduced? 535 00:45:29,260 --> 00:45:31,480 So when they reduce, they did that. 536 00:45:31,500 --> 00:45:33,200 That is a nice headline for questions. 537 00:45:33,300 --> 00:45:34,620 Yeah, I think they increased. 538 00:45:34,960 --> 00:45:42,240 That is, as we communicated about the changes in 2022 and 2023 to the state's portion. 539 00:45:43,880 --> 00:45:48,060 Research also identifies that the cannabis tax had increased. 540 00:45:48,860 --> 00:45:54,980 Gasoline tax had increased and then the whole harmless was retracted. 541 00:45:54,980 --> 00:46:00,220 So again, there's been, you know, not only some benefit, if you will. 542 00:46:00,220 --> 00:46:05,680 As I mentioned to the consumer, there's been other effects and cuts that have benefited 543 00:46:05,680 --> 00:46:08,140 the state and affected municipalities. 544 00:46:08,640 --> 00:46:09,760 I've got the money somewhere else. 545 00:46:09,980 --> 00:46:10,080 Yes. 546 00:46:11,160 --> 00:46:11,360 What? 547 00:46:11,740 --> 00:46:12,400 The point. 548 00:46:12,760 --> 00:46:13,440 Thank you. 549 00:46:13,980 --> 00:46:22,260 Well, to that point, I think it's interesting this page 4 slide that you said the state 550 00:46:22,260 --> 00:46:23,640 financial analyst did. 551 00:46:23,640 --> 00:46:31,800 I mean, it's clear that there's, to me, it's almost like a mission to force municipalities 552 00:46:32,460 --> 00:46:39,040 to increase their burden on themselves because, I mean, if they're highlighting saying, 553 00:46:39,200 --> 00:46:46,800 hey, your rate is too low, it's like they want to carve out more for themselves and then 554 00:46:46,800 --> 00:46:52,880 leaves the municipalities in the situation we're in to say, okay, we've got to go from 555 00:46:52,880 --> 00:46:59,140 six and a half to seven something and then they still keep the same chump but then there's just more 556 00:46:59,140 --> 00:47:06,100 it's another layer of tax it's on you know everybody stay wide yeah it's it's no different when 557 00:47:06,100 --> 00:47:11,220 they did the whole thing. Even though they are kicking back some in grants but I mean I think you 558 00:47:11,220 --> 00:47:16,240 just don't like to play that game as you know this power because you can't as a player. We never know 559 00:47:16,240 --> 00:47:23,400 One of the mayor and Commissioner Smith in that same session with the New 560 00:47:23,400 --> 00:47:28,540 Mexico Municipal League they talked about tax effort and they utilized tax 561 00:47:28,540 --> 00:47:35,320 effort meaning what we is the community of municipality have asked of our 562 00:47:35,320 --> 00:47:42,400 constituents of our tax payer and they they compared Hobbes obviously the lowest 563 00:47:42,400 --> 00:47:49,640 gross receipt tax in the state compared to Red River, other municipalities, I mean 564 00:47:49,640 --> 00:47:56,800 obviously a different population, but they demonstrated that there is a lack in their 565 00:47:56,800 --> 00:48:05,460 opinion of tax effort by this community in the years past, and again, it's one of those 566 00:48:05,460 --> 00:48:13,020 things that when they identified the economic engine, they see that there's no question 567 00:48:13,020 --> 00:48:19,500 that per capita the available resources we had, especially under HP strikes, were significant. 568 00:48:21,020 --> 00:48:26,320 And we were blessed with that and had the ability to keep the rate we charged ourselves 569 00:48:26,320 --> 00:48:31,300 as we were less at, but the more that stuff that you take away from those communities, 570 00:48:31,300 --> 00:48:35,140 you're going to force them into these discussions we're having tonight. 571 00:48:35,840 --> 00:48:41,460 In the highlights, most communities, if you look at the chart, did have a positive impact 572 00:48:41,460 --> 00:48:42,340 with SB6. 573 00:48:43,380 --> 00:48:47,400 We're one of the few that there's a definitely a dip. 574 00:48:47,660 --> 00:48:48,500 Well, it's going to happen. 575 00:48:48,740 --> 00:48:54,720 I mean, when you're the number one producer in that pool of rounds, and you start distributing, 576 00:48:55,100 --> 00:49:00,080 just redistributing that, I mean, that's going to be the outcome, for sure. 577 00:49:00,080 --> 00:49:05,460 So you hit it as far as the state and what they've done in the past when they did the whole harmless on food and 578 00:49:05,460 --> 00:49:10,780 Medical and said hey, we're going to write you a check. We're going to every year. Don't worry about it. 579 00:49:11,000 --> 00:49:17,260 And then they ran into the problem. They said hey, we're going to phase this out, but we're going to offer all communities ability to 580 00:49:19,720 --> 00:49:25,260 increase GRT because we're taking away the whole harmless. So yeah, they're going to they're going to help. 581 00:49:25,260 --> 00:49:31,080 They're just going to make commissioners the bad make the bad decisions and unprofitable decisions. 582 00:49:34,430 --> 00:49:44,670 So regardless, some priority uses as far as we're looking at this both internally and comments 583 00:49:44,670 --> 00:49:50,950 from the public, purpose streets drainage, capital improvements, public safety, essential services, 584 00:49:50,950 --> 00:49:56,810 and also we threw in the growth infrastructure plus grant matches because a lot 585 00:49:56,810 --> 00:50:01,550 times what we've done when we were flush, we would go out and extend the water 586 00:50:01,550 --> 00:50:06,730 and sewers. With General Fund dollars, our strategic plan back then was to extend 587 00:50:06,730 --> 00:50:10,990 annexing gas. That's what we did on Crossbed Highway, that's what we did on some 588 00:50:10,990 --> 00:50:14,910 of the other strategic areas. And so we've been blessed to be able to do that with 589 00:50:14,910 --> 00:50:18,650 General Fund, rather than taxing the ratepayers for our water and sewers. 590 00:50:21,760 --> 00:50:22,260 So next 591 00:50:22,260 --> 00:50:26,600 Next steps for staff is direction determined whether staff should proceed. 592 00:50:27,620 --> 00:50:31,280 We need to identify a range if we're going to do any kind of increase. 593 00:50:31,940 --> 00:50:33,360 We also have to define the purpose. 594 00:50:34,360 --> 00:50:37,860 So it could be municipal purpose, would create the great flexibility. 595 00:50:38,580 --> 00:50:44,760 It could be dedicated as far as capital improvements or essential services and then bring back an 596 00:50:44,760 --> 00:50:45,920 ordinance for consideration. 597 00:50:46,800 --> 00:50:50,560 And we want to emphasize that hops is not in the crisis today, strong reserves allow the 598 00:50:50,560 --> 00:50:56,420 commission to act before choices narrow. And what that looks like if we were to enact 599 00:50:56,420 --> 00:51:04,000 such would be a July 1st would be the earliest could be as far as an effective date. 600 00:51:04,660 --> 00:51:08,920 There would be have to be a model ordinance reviewed with tax and rev. We would have to 601 00:51:08,920 --> 00:51:15,180 publish that ordinance and then commission would act and then send that to TRD. Is there 602 00:51:15,180 --> 00:51:20,120 any questions? If I may commission if you would indulge me for just a moment I just want 603 00:51:20,120 --> 00:51:25,280 to make a comment on this because I know this is an important conversation, this is a conversation 604 00:51:25,280 --> 00:51:29,640 so many commissioners, I mean all of you have had with your constituents for so many years 605 00:51:29,640 --> 00:51:36,180 and so as mayor I've been, I've now been in office for eight months and eight months 606 00:51:36,180 --> 00:51:40,960 is still early in a mayoral term but I believe we've accomplished a tremendous amount together 607 00:51:40,960 --> 00:51:45,580 and I want to thank our city commission, our city staff for the work they do every single 608 00:51:45,580 --> 00:51:50,940 day to make sure that Hobbs thrives. I was elected to represent the people this community 609 00:51:50,940 --> 00:51:55,560 to listen, to solve problems, to continue leading our city forward. And as you know, part 610 00:51:55,560 --> 00:52:00,220 of leadership is being willing to face difficult challenges before they become major problems. 611 00:52:00,940 --> 00:52:05,800 One of those challenges, as we've seen tonight, and as we've seen for many, many months 612 00:52:05,800 --> 00:52:10,600 and even years, one of those challenges is our finances. And I want to be clear, our city 613 00:52:10,600 --> 00:52:16,120 staff and our commission have done an excellent job managing the resources we have, the changes 614 00:52:16,120 --> 00:52:21,320 at the state level, as we've heard so often, specifically House Bill 6 have created 615 00:52:21,320 --> 00:52:27,280 a significant financial issue for our city. As leaders we have an obligation to respond 616 00:52:27,280 --> 00:52:32,760 not just for the people of Hobbes today but for the employers, for the employees who serve 617 00:52:32,760 --> 00:52:37,760 this community and for the generations of Hobbes residents will come after us. Now Hobbes 618 00:52:37,760 --> 00:52:42,520 is growing. We know that. We see it every day. Hobbes is growing. And at the same rate our 619 00:52:42,520 --> 00:52:47,220 need for better technology and city services is also growing. We have to make sure our first 620 00:52:47,220 --> 00:52:52,160 responders are well equipped to protect our citizens. We had a gentleman come to this podium 621 00:52:52,160 --> 00:52:57,360 just a few weeks ago and talk about that. That we need more firefighters or certified firefighters. 622 00:52:57,520 --> 00:53:02,040 Isn't that right? We have to make sure we have enough police officers and more and more coming. 623 00:53:02,220 --> 00:53:05,520 Now we have to make sure we have enough police officers and firefighters to keep our 624 00:53:05,520 --> 00:53:09,500 neighborhood safe. We have to make sure our roads are maintained and our drainage systems 625 00:53:09,500 --> 00:53:14,040 can meet the needs of our growing community. We have to continue investing in our infrastructure 626 00:53:14,040 --> 00:53:18,480 and maintaining the beautiful city that we're proud to call home. We have to make sure 627 00:53:18,480 --> 00:53:23,800 Hobbes remains a place where families want to live. Businesses want to invest and people 628 00:53:23,800 --> 00:53:28,060 want to build their future and that's why. This is why I believe we need an increase 629 00:53:28,620 --> 00:53:33,280 for grocery seatstacks that we vote on here. I see this as an investment in Hobbes and 630 00:53:33,280 --> 00:53:34,580 and investment in public safety, 631 00:53:35,040 --> 00:53:36,620 and investment in our infrastructure. 632 00:53:37,180 --> 00:53:38,800 Ultimately, I see this as an investment 633 00:53:38,800 --> 00:53:40,080 in the future of our community. 634 00:53:40,640 --> 00:53:42,300 We've accomplished a lot in the last eight months 635 00:53:42,300 --> 00:53:44,220 and even years before with all these commissioners 636 00:53:44,220 --> 00:53:46,340 putting in years of tireless work. 637 00:53:47,120 --> 00:53:48,680 I believe the best day of Hobbs, 638 00:53:48,880 --> 00:53:50,900 the best days of Hobbs are still ahead of us. 639 00:53:51,020 --> 00:53:53,180 And if we're willing to make the right decisions today, 640 00:53:53,500 --> 00:53:55,480 we can continue innovating and making our city 641 00:53:55,480 --> 00:53:57,940 stronger, safer, better maintained, 642 00:53:58,180 --> 00:53:59,800 and more prosperous than the one we inherited. 643 00:54:00,460 --> 00:54:02,540 I do believe we have responsibility to take care 644 00:54:02,540 --> 00:54:06,960 of Hobbes today and an obligation to build an even better Hobbes for tomorrow and that's 645 00:54:06,960 --> 00:54:08,200 why I support this investment. 646 00:54:08,640 --> 00:54:13,540 I know that together we can build a more vibrant, safe and prosperous community and that's 647 00:54:13,540 --> 00:54:15,360 my take on it gentlemen. 648 00:54:15,780 --> 00:54:16,080 Your thoughts? 649 00:54:17,020 --> 00:54:22,220 Probably shouldn't do that today or we'll all be in the state for isn't by late and open 650 00:54:22,220 --> 00:54:29,240 meeting stuff but I would suggest that the real I've been here eight years and the last 651 00:54:29,240 --> 00:54:34,100 five years we've been talking about HB6 and I'm honestly kind of over the HB6 652 00:54:34,100 --> 00:54:38,760 deal. We haven't educated the community on HB6 yet and those people don't 653 00:54:38,760 --> 00:54:42,280 care to be educated or they don't care enough about the community to listen to 654 00:54:42,280 --> 00:54:49,020 any of it. So I mean it really is it's HB6 is a thing and if you don't know 655 00:54:49,020 --> 00:54:53,020 about it you're not really interested in sitting government. We're just speaking 656 00:54:53,020 --> 00:55:00,240 to hear or so I was talking at some point. The other thing is this is my 50th year living 657 00:55:00,240 --> 00:55:05,020 in Hobbes and we've never been treated fair by state government so that's not going 658 00:55:05,020 --> 00:55:11,440 to change either and so I mean I've sitting in one and about being mistreated by people 659 00:55:11,440 --> 00:55:18,460 in Santa Fe is the same thing that I remember my dad talking about 1984 and that's not 660 00:55:18,460 --> 00:55:24,660 going to shame. So it becomes really where is Hobbes going are we? So this is really to me about 661 00:55:24,660 --> 00:55:31,040 are we a growing community who wants to continue expand, continue to add infrastructure, continue to add 662 00:55:31,040 --> 00:55:38,340 roads, get more better restaurants, stores, etc. Or do we all probably drive to Snyder, Texas? 663 00:55:38,520 --> 00:55:43,860 Are we a town like Snyder? Which you drive to the town and there's not hard leading cars. It doesn't 664 00:55:43,860 --> 00:55:48,240 It seemed like, and you see mostly abandoned empty buildings and those sort of things. 665 00:55:48,400 --> 00:55:53,360 That's the real, I mean, I don't have big fancy language, but that's the deal that we 666 00:55:53,360 --> 00:55:59,820 want to be snider for some of these other towns in Cino, New Mexico, when we dropped Albuquerque. 667 00:56:01,280 --> 00:56:07,560 That's the real choice, is it the in Cino direction or is it the direction that has been going 668 00:56:07,560 --> 00:56:12,540 since I've lived here, which is to grow the community and improve our lives, 669 00:56:12,540 --> 00:56:15,240 and to plan a quality of life. 670 00:56:15,440 --> 00:56:18,480 So that's the real decision that we should be talking about. 671 00:56:19,320 --> 00:56:22,780 Good. Any other thoughts, Commissioner? 672 00:56:24,080 --> 00:56:26,180 Yeah, I do not. Thank you. 673 00:56:26,940 --> 00:56:32,860 Todd, you mentioned, right now we're currently at, was 6.56, 674 00:56:32,860 --> 00:56:39,160 six, that's where we at, and if we were to, I'm just looking at the chart here, anything 675 00:56:39,160 --> 00:56:43,300 above that 7.17 gold before a vote. 676 00:56:43,800 --> 00:56:44,120 Correct. 677 00:56:49,200 --> 00:56:54,000 So I guess what I'm asking is how, as 678 00:56:56,560 --> 00:57:01,540 Commissioner Meals just said, we are designed to grow, 679 00:57:01,920 --> 00:57:08,280 and we are growing, but we need to find a common ground in here with this amount that we are 680 00:57:08,280 --> 00:57:09,000 looking at. 681 00:57:10,140 --> 00:57:16,940 something that is, I guess what I've said, nothing in terms of putting a bad date on 682 00:57:16,940 --> 00:57:24,340 it, but it's something that we can, in turn, heal and grow from it, so I'm sure you 683 00:57:24,340 --> 00:57:27,220 either staff are bringing back some numbers to us. 684 00:57:27,960 --> 00:57:28,160 Yes. 685 00:57:28,420 --> 00:57:35,860 And if we could, if you'd like commissioners, if the, if, if music commission would be willing, 686 00:57:36,400 --> 00:57:43,500 staff can look at this and they could present some numbers here. We could look and see what 687 00:57:43,500 --> 00:57:50,900 would be effective here and we could come back and massage it out and bring it back for 688 00:57:51,740 --> 00:57:58,440 publication, a recommendation and publication for an ordinance if that's okay with you, gentlemen. 689 00:57:58,440 --> 00:58:02,800 I have a couple of things if I'm married mayor. 690 00:58:02,900 --> 00:58:03,020 Please. 691 00:58:04,260 --> 00:58:09,800 What it's worth, I haven't verified this, but I wanted to see in 2004, because when we 692 00:58:09,800 --> 00:58:16,740 flipped through the chart where you said everything was adjusted for $20, $26, I did some quick 693 00:58:16,740 --> 00:58:27,460 math, I used my calculator, but with $40 million in $20, $26, that implied gross receipts 694 00:58:27,460 --> 00:58:39,560 tax, somewhere in the neighborhood of $15 million back, and that's using a 1.03 percent compounded for 20 years, which surprised me. 695 00:58:40,420 --> 00:58:54,620 Then in the same, in a deal I got here, it said in 2004, our local rate was 7.1875, which is 62 and a half basis points higher than it is today. 696 00:58:56,440 --> 00:59:05,520 So when you talk about the inflationary cost, you know, to me some of that is captured 697 00:59:05,520 --> 00:59:11,580 with the rising cost of the revenue that's the factor that's driving your tax that the 698 00:59:11,580 --> 00:59:22,580 numbers based on, but to give up 62 and a half basis points have what in, you know, are 699 00:59:22,580 --> 00:59:32,640 very good years was roughly, gosh, it's probably 15% on average in the HP 6 car route that we lost 700 00:59:33,360 --> 00:59:38,920 and we lowered our rate by 62 and a half basis points. That's tough. 701 00:59:40,380 --> 00:59:47,020 I can support this. My concern is going to be, like when we talk about the slide on 702 00:59:47,020 --> 00:59:54,460 And the budget to the slides where our operating and payroll is budgeted at 100, more than 703 00:59:54,460 --> 00:59:55,140 100 percent. 704 00:59:55,500 --> 00:59:55,660 Right. 705 00:59:58,250 --> 00:59:59,970 any enterprise that concerns you. 706 01:00:00,000 --> 01:00:28,940 Listently, can't cover payroll and operating expenses with their core revenue is destined to fail. And I would like for staff to give us suggestions on what a meaningful number that that can be. 80%, 90% over time. We're just with the normal stuff you've got coming in. 707 01:00:28,940 --> 01:00:34,380 that we can plan our payroll and our operating costs around. 708 01:00:35,220 --> 01:00:43,760 And then to the extent that we've got excess that we hope to get from this increase in the grocery seat stacks, 709 01:00:44,660 --> 01:00:49,640 just kind of play that out over the next five to ten years. 710 01:00:50,160 --> 01:00:51,180 It's not going to be exact. 711 01:00:51,840 --> 01:00:55,900 Let's see how much of this projected, you know, I think it was, 712 01:00:55,900 --> 01:01:03,600 We had 343 ICIP and then there was 149 and then close to 200 million of identified, 713 01:01:04,480 --> 01:01:06,180 seriously need these things. 714 01:01:07,300 --> 01:01:14,690 So, you know, at a minimum, if we can take whatever projections we're going to use, 715 01:01:14,690 --> 01:01:21,570 and it's interesting that 7.1875, if you go back to the slide that allows us to get to the max, 716 01:01:21,570 --> 01:01:27,350 within 10 basis points of that, to get us back to 2004 levels. 717 01:01:29,730 --> 01:01:35,970 So what I personally would like to see is plug that number in. 718 01:01:36,870 --> 01:01:47,010 Say our goal is not to go over 90% of our GRT for the operating and personnel cost. 719 01:01:47,010 --> 01:01:54,890 And let's see how much of the roughly 300, well, 200 million that we've identified 720 01:01:54,890 --> 01:02:00,050 that we'll be able to maybe chew off in the next five to 10 years. 721 01:02:01,750 --> 01:02:07,330 And the only other suggestion I would have is that, I mean, we've held community work 722 01:02:07,330 --> 01:02:12,990 sessions in my mind for situations not as important as this is. 723 01:02:12,990 --> 01:02:35,150 and I would be fine having at least an hour if not more before our meeting when we discuss this to try to get I mean we need to hear what I mean this is going to affect everybody not just us and I think it's important for everybody that wants to be part of this come out and understand what's what's going on 724 01:02:35,150 --> 01:02:44,030 I mean, the reality is, in rate terms, we took a rate cut of 62.5 basis points. 725 01:02:47,010 --> 01:02:48,650 I think that's important to point out. 726 01:02:49,850 --> 01:02:51,090 I think that was a mistake. 727 01:02:52,430 --> 01:02:54,030 In hindsight, I think it was a mistake. 728 01:02:54,690 --> 01:02:58,130 And a lot of that came when the state cuts their portion. 729 01:02:58,550 --> 01:03:01,750 They just set us up to slam the slate or on, I guess. 730 01:03:02,590 --> 01:03:06,330 And I think we made the mistake of not keeping up with that. 731 01:03:06,330 --> 01:03:12,290 because it's very difficult to move it up. It's always easy to come down. 732 01:03:12,670 --> 01:03:13,030 Sure. 733 01:03:13,630 --> 01:03:15,350 So, that's my concern. 734 01:03:15,830 --> 01:03:17,810 Okay, man. Very good. Go ahead, Commissioner. 735 01:03:19,090 --> 01:03:21,030 I was not going to comment on this this evening. 736 01:03:21,950 --> 01:03:24,370 I've been given this a lot of thought. 737 01:03:25,310 --> 01:03:30,750 In a time when everything is so costly to the citizens of this city, 738 01:03:31,870 --> 01:03:38,820 I don't care if it's something as simple as eggs and bread or whatever it is, things 739 01:03:38,820 --> 01:03:44,600 are so expensive, I want to make sure that we exhaust every means necessary before we 740 01:03:44,600 --> 01:03:46,300 ask for more money from the public. 741 01:03:46,660 --> 01:03:50,040 I'm not a big advocate of raising taxes, never have been. 742 01:03:50,980 --> 01:03:55,080 I want to make sure that we have looked at this budget and gone through this budget. 743 01:03:55,640 --> 01:04:00,860 I still believe, and I have seen emails out on this, that there are areas we can cut this 744 01:04:00,860 --> 01:04:05,600 budget where I feel like we spend where we shouldn't spend that we could look at. I think 745 01:04:05,600 --> 01:04:11,560 there's areas that we can generate more funds for this city that I have brought up multiple times 746 01:04:12,340 --> 01:04:16,720 and not on point fingers or anything because I think there's a lot of great information today 747 01:04:16,720 --> 01:04:26,400 that was shared and I agree with 90% of it and I know that we're at a decision point in Hobbes 748 01:04:26,400 --> 01:04:27,600 So we have to make a decision. 749 01:04:27,760 --> 01:04:37,800 We don't want to get 5, 10 years down the road and be operating in the red with everything 750 01:04:37,800 --> 01:04:38,520 we do budget. 751 01:04:38,600 --> 01:04:42,900 I know a lot of things we budget that we don't actually spend, but we still put it in 752 01:04:42,900 --> 01:04:43,260 the budget. 753 01:04:43,440 --> 01:04:48,000 So a lot of stuff is showing higher than what we actually spend when you look at a budget. 754 01:04:48,080 --> 01:04:49,040 And that's with any business. 755 01:04:50,520 --> 01:04:53,040 I just want to, this is my personal opinion. 756 01:04:53,640 --> 01:04:57,440 I don't make decisions based on what any other commissioner appear to things. 757 01:04:58,080 --> 01:05:02,980 I listen to them and try to understand and reason and hear their wisdom because all of 758 01:05:02,980 --> 01:05:06,840 them have something to give from businessmen and life experience. 759 01:05:07,060 --> 01:05:11,920 I really, everyone's opinion along with my city manager and my assistant city manager 760 01:05:11,920 --> 01:05:14,320 and especially our finance department. 761 01:05:14,480 --> 01:05:18,000 I know you know better than anybody where we're setting on finances. 762 01:05:18,620 --> 01:05:20,580 But I do believe there's areas we can look at. 763 01:05:20,580 --> 01:05:26,180 And I just feel like this is not a decision we rush into because of this state. 764 01:05:26,180 --> 01:05:27,940 And I don't feel like we have rushed into it. 765 01:05:28,000 --> 01:05:32,440 Don't get me wrong, but I just feel like we should look at every avenue before we go 766 01:05:32,440 --> 01:05:36,120 to our constituents to raise taxes. 767 01:05:36,520 --> 01:05:46,340 I feel like this, this country, the state, the city, we are taxed $4 and $5 on every $4 768 01:05:46,340 --> 01:05:47,900 or $5 times on every dollar we make. 769 01:05:47,900 --> 01:05:53,160 They're saying like every time I'm doing something I'm paying taxes and I'm paying taxes on it again on another purchase 770 01:05:53,160 --> 01:05:59,360 It's just it's really overwhelming what the what government asked from people 771 01:06:00,240 --> 01:06:02,380 So I'm not an advocate of it 772 01:06:02,380 --> 01:06:09,860 But I'm also not ignorant to the fact because I operate several businesses, and I know you you can't operate in a red 773 01:06:10,500 --> 01:06:13,560 so that's basically my piece on it and 774 01:06:13,560 --> 01:06:18,240 And unlike what was said earlier, comments that were all bunch of bobble heads who just 775 01:06:18,240 --> 01:06:21,100 make decisions just based willy-nilly, it's not the case. 776 01:06:21,760 --> 01:06:26,460 Every decision I make for this commission, this city, I research and I look into, I don't 777 01:06:26,460 --> 01:06:31,220 make decisions based on just whatever the hell I feel like doing at the time. 778 01:06:32,320 --> 01:06:38,800 I do appreciate everybody's time, all the knowledge and all the professionalism that you guys 779 01:06:38,800 --> 01:06:41,220 do a fantastic job with our budget and I'm so impressed. 780 01:06:42,040 --> 01:06:49,800 that's my take on it. I know what I want to say. This is my fifth year on the 781 01:06:49,800 --> 01:06:56,360 commission and I'm one thing I do do I listen. I pay attention I understand 782 01:06:56,360 --> 01:07:03,680 exactly what the finance began to present the budget. I follow along and see 783 01:07:03,680 --> 01:07:11,880 just where the cuts need to be made I can see how no one wants to increase 784 01:07:11,880 --> 01:07:18,780 taxes but when you look at the overall picture and see exactly as the city 785 01:07:18,780 --> 01:07:24,280 manager has shared with us tonight in terms of the services that we provide 786 01:07:24,280 --> 01:07:32,360 within the city and how it's like that's anything if you spend spend spend you 787 01:07:32,360 --> 01:07:35,800 have to bring something back in. And I can see how 788 01:07:38,100 --> 01:07:41,720 increase may have is there's no way 789 01:07:41,720 --> 01:07:46,960 we have to increase it. We have to increase, but the amount that we don't have to increase 790 01:07:46,960 --> 01:07:56,140 is where we at. But I just want to say thank you, Deb, say the manager or y'all for putting 791 01:07:56,140 --> 01:08:01,200 your thoughts and all working to this and we're just looking forward to what you're going 792 01:08:01,200 --> 01:08:07,560 We can bring back to us and they will sit down and we can look at the best direction we need to go for the city. 793 01:08:08,620 --> 01:08:18,940 Very good. So I believe if anyone else has any more comments, these are good things and if we could, let's look at some numbers. 794 01:08:19,760 --> 01:08:25,540 They've even talked about a work session. We can do that and let's bring it back for publication. 795 01:08:27,420 --> 01:08:28,020 Thank you. 796 01:08:28,320 --> 01:08:29,300 Thank you so much. 797 01:08:29,300 --> 01:08:29,640 Good job. 798 01:08:30,480 --> 01:08:31,720 Thank you so much. 799 01:08:31,820 --> 01:08:32,600 All right. 800 01:08:34,520 --> 01:08:41,280 Next is Action Items Resolution number 7830, authorizing and approving submission of 801 01:08:41,280 --> 01:08:46,020 a completed application for financial assistance to the New Mexico Finance Authority Water 802 01:08:46,020 --> 01:08:50,200 Trust Board for fiscal year 2027, Anthony Henry Utilities Director. 803 01:08:50,620 --> 01:08:50,960 Thank you, Mayor. 804 01:08:51,120 --> 01:08:51,240 Commission. 805 01:08:52,040 --> 01:08:55,880 This resolution is going to authorize submission of grant applications for three separate projects. 806 01:08:56,460 --> 01:09:00,740 If I have the LMO, I kind of get some maps to show you the project. 807 01:09:05,450 --> 01:09:07,090 I need to zoom that in for sure. 808 01:09:07,910 --> 01:09:08,230 Thank you. 809 01:09:09,610 --> 01:09:10,370 There we go. 810 01:09:11,470 --> 01:09:14,210 So just as Todd briefly mentioned about some of the capital projects, 811 01:09:14,210 --> 01:09:17,430 this is highlighting one that we're going to apply for. 812 01:09:17,790 --> 01:09:22,090 It's about 7,900 feet of 16-inch waterline along the Seminole Highway on the west side 813 01:09:22,090 --> 01:09:23,510 from Sanger all the way to Bender. 814 01:09:24,030 --> 01:09:27,570 This is in preparation for over-planning a new water tower in the area. 815 01:09:27,570 --> 01:09:37,830 this is just kind of a overview. The tower won't be going there right now, but we want to prepare the Taylor Ranch property for future development, whatever direction the commission sees that going in the future. 816 01:09:38,670 --> 01:09:44,770 It's important to note that this is the first year the water trust board is offering these funding and it is 100% grant. There's no match. 817 01:09:45,390 --> 01:09:52,130 We are going to apply for this three separate projects. The second one is water wells here in the high up area. 818 01:09:52,130 --> 01:09:55,290 we're seeing the most growth in the north system there and so this will be 819 01:09:55,290 --> 01:09:59,270 design funds for engineering only for five new water well locations on the 820 01:09:59,270 --> 01:10:04,110 high or the hydro system up in the high up area. The final project is going to be 821 01:10:04,110 --> 01:10:09,430 here along Joe Harvey. With the trunk line F project we're talking about resurfacing 822 01:10:09,430 --> 01:10:14,970 Joe Harvey once we get there and so this small little 2,000 feet of sewer line we 823 01:10:14,970 --> 01:10:17,790 need to replace before of course to put that spot down so we don't tear it up 824 01:10:17,790 --> 01:10:21,990 afterwards. Total revenue if the all three grant projects get approved 825 01:10:21,990 --> 01:10:27,070 to be about $1.3 million. Like with this being the first year that the funding's offered, 826 01:10:27,210 --> 01:10:31,330 we're not quite sure if we'll get awarded all three or maybe just one, but is it exciting 827 01:10:31,330 --> 01:10:35,910 to see this 100% grant? With that, it's there for any questions. 828 01:10:36,290 --> 01:10:41,050 I get to see all my questions I've got is like when you put it that last sentence, 829 01:10:41,090 --> 01:10:44,170 it's considered me like when you've got two, they're right about the same price. 830 01:10:45,090 --> 01:10:48,570 When you put the third one on there, I just don't want to get the third one only. 831 01:10:54,790 --> 01:10:58,210 We get to list them in priority order and of course the water ones are going to be 832 01:10:58,210 --> 01:10:59,330 our priority system. 833 01:10:59,490 --> 01:10:59,610 Okay. 834 01:11:00,370 --> 01:11:03,390 And these applications are due on the 17th, so coming up here pretty quick. 835 01:11:03,870 --> 01:11:04,410 Very good. 836 01:11:04,750 --> 01:11:05,910 Any other questions or comments? 837 01:11:06,770 --> 01:11:07,490 We'll entertain a motion. 838 01:11:08,290 --> 01:11:08,710 Moved. 839 01:11:08,990 --> 01:11:10,350 Moved by Commissioner Mills. 840 01:11:12,710 --> 01:11:14,010 Seconded by Mayor Pro Tem. 841 01:11:14,230 --> 01:11:14,630 Got it on. 842 01:11:24,920 --> 01:11:26,160 What is in progress? 843 01:11:28,420 --> 01:11:29,320 We miss anyone? 844 01:11:29,760 --> 01:11:30,840 Yeah, I'm on the Commissioner Mills. 845 01:11:31,380 --> 01:11:33,240 I think I had 846 01:11:36,570 --> 01:11:37,870 too much inactivity. 847 01:11:39,130 --> 01:11:40,330 So that will help me out. 848 01:11:40,770 --> 01:11:41,470 Oh, okay. 849 01:11:41,750 --> 01:11:43,090 Can you, can you, Commissioner Mills? 850 01:11:43,750 --> 01:11:44,530 Voice vote. 851 01:11:45,070 --> 01:11:46,050 Very easy for you guys. 852 01:11:46,250 --> 01:11:46,950 Oh, we got, okay. 853 01:11:47,150 --> 01:11:47,570 There it is. 854 01:11:47,850 --> 01:11:49,050 Has passed 7-0. 855 01:11:49,710 --> 01:11:52,890 Mr. Henry, Anthony Henry will continue Utilities Director. 856 01:11:53,090 --> 01:11:56,130 Consideration approval to purchase various sized 857 01:11:56,130 --> 01:12:01,190 metron smart water meters with digital Verizon cellular registers from water 858 01:12:01,190 --> 01:12:09,750 meters of New Mexico. Through state pricing agreement 5-0-0-0-0-0-0-0-2-4-0-0-0-1-9. 859 01:12:10,170 --> 01:12:12,330 Wow, Mr. Henry, that's a lot of numbers there. 860 01:12:12,570 --> 01:12:15,690 Thank you, Mayor. Commission, this purchase is actually going to be the final 861 01:12:15,690 --> 01:12:19,150 purchase for a water meter upgrade project that's been going on since 2018. 862 01:12:19,610 --> 01:12:23,970 This, before you tonight, is about $572,780. 863 01:12:24,450 --> 01:12:29,090 We'll purchase about 790 water meters that range from three quarter inch all the way up to six inch. 864 01:12:30,110 --> 01:12:31,930 We are purchasing one inch meters. 865 01:12:32,410 --> 01:12:36,370 A couple years ago, we were only offering three quarters, but now we're offering one inch services as well. 866 01:12:36,790 --> 01:12:39,710 And this will give us a little bit of stock that we need to have on top. 867 01:12:39,710 --> 01:12:44,750 Mr. Henry, the lady, I guess she left already, was commenting on the water meters. 868 01:12:44,930 --> 01:12:46,690 Why do you need the water meters? 869 01:12:47,390 --> 01:12:53,750 So this is going to be our larger water meters commissioner Calderon. So that's going to be your hotels. The junior college has a big water meter. 870 01:12:54,550 --> 01:13:01,770 Everywhere that has a two inch irrigation meter. So we've kind of done the smaller ones. We've got about 15,800 meters in the system. 871 01:13:02,670 --> 01:13:04,830 So we're down to the last 750 about. 872 01:13:04,830 --> 01:13:13,330 So it's fine how we've done this in phases and that's part of the entire plan because I don't think everybody sees us buy more and more meters. 873 01:13:13,830 --> 01:13:19,110 Explain how it's a phase deal where we did one size and another size and so on and so forth. 874 01:13:19,610 --> 01:13:25,030 I guess we're just various commissionals when we started in 2018 it was a test project we did about a hundred meters. 875 01:13:25,790 --> 01:13:31,150 Then we were really limited on the scope and time we can replace meters in our system due to billing, right? 876 01:13:31,150 --> 01:13:35,750 We don't want to just change them all day every day because then we can't really track billing correctly 877 01:13:35,750 --> 01:13:40,470 So that's limited limits our scopes, which as well. It's really phased. So previously 878 01:13:41,210 --> 01:13:45,390 We had Neptune meters and census meters and most of them were one inch 879 01:13:46,030 --> 01:13:52,190 3 1 1 1 and so we wanted to standardize that all to a 3 1 1 1 1. Since then we've noticed some residents 880 01:13:52,190 --> 01:13:56,630 Not happy with that smaller system. So we've we've gone to a 1 inch 881 01:13:57,350 --> 01:14:00,890 It's just taken about eight years now just because we have that limitation on 882 01:14:01,150 --> 01:14:07,230 on how we can install them so we haven't really start the smart meter program till 2024 and that's 883 01:14:08,130 --> 01:14:13,090 most of the technology that was spoken about previously was that water scope app that we offer now 884 01:14:13,090 --> 01:14:18,870 and how you can track your usage and detect water leaks and we can stop water theft a lot faster now it 885 01:14:18,870 --> 01:14:23,790 alerts our system so we're still that's a separate project from this one we call that our AMR 886 01:14:23,790 --> 01:14:26,970 change out. We still have quite a few AMRs to change out on these meters. 887 01:14:28,350 --> 01:14:33,370 I'd like to also add comments made earlier in the opening comments on the 888 01:14:33,370 --> 01:14:37,870 public. These smart meters are nothing that the city uses to control 889 01:14:37,870 --> 01:14:43,910 somebody's water uses as a as a as a insinuated. This is nothing that we this 890 01:14:43,910 --> 01:14:48,990 is strictly it cuts man hours it's we're moving up we're moving up all the 891 01:14:48,990 --> 01:14:53,670 times it's a meter that can be read from from one location. It's not something 892 01:14:53,670 --> 01:14:57,430 that we just decide we're going to put in one neighborhood or not the next 893 01:14:57,430 --> 01:14:59,970 neighborhood. This is upgrading our city. 894 01:15:00,000 --> 01:15:29,980 City's water meters, it was time to change them. They have better warranty. It's a better product. So we're just increasing to a better product to cut the workload of city staff, which also helps with our budget. And it definitely does not control somebody's water use. It does let us know like Anthony pointed out, very important. If we have like I got a, I got a letter from the water department saying I had a water leak and sure enough, I had a water leak out by my meter, which of course it was on my side. So I had to pay. 895 01:15:29,980 --> 01:15:36,820 for it but if not if not known that we we lose millions and millions of gallons of water that's a 896 01:15:36,820 --> 01:15:44,240 city loses that we built for it yeah we yeah I got it oh my gosh well with that many three thousand 897 01:15:44,240 --> 01:15:50,140 dollars with the one we had originally got the shopping center it was three thousand dollars with 898 01:15:50,140 --> 01:15:57,460 a water usage during that freeze and had we had a smart meter on that we were known so I think it's 899 01:15:57,460 --> 01:16:02,580 very important that we have these, and it's a blessing that this commission has a 900 01:16:02,580 --> 01:16:07,520 foresight to see that, to go with these new water meters, so thank you all for your 901 01:16:07,520 --> 01:16:07,680 work. 902 01:16:08,020 --> 01:16:12,160 Just to your point, Commissioner Pennick, what we look at at the utility department is how 903 01:16:12,160 --> 01:16:15,460 much water we're pumping out of the ground versus how much we're building for, and ideally 904 01:16:15,460 --> 01:16:20,040 we want those numbers to equal each other, and since 2018, we've replaced in these new 905 01:16:20,040 --> 01:16:23,720 accurate meters, that number has gotten closer and closer, so we're seeing improvements 906 01:16:26,080 --> 01:16:31,960 I'm going to go ahead, Mary, would you highlight the app that people can, they can see their 907 01:16:31,960 --> 01:16:32,540 water usage? 908 01:16:32,800 --> 01:16:33,040 Yes, sir. 909 01:16:33,220 --> 01:16:34,160 It's called WaterScope. 910 01:16:34,440 --> 01:16:37,420 There's a great presentation on the utility department website. 911 01:16:37,620 --> 01:16:40,120 If you'll call the water office Cindy, she's an expert at it. 912 01:16:40,200 --> 01:16:40,940 She'll get you set up. 913 01:16:41,080 --> 01:16:42,360 She'll kind of train you how to use it. 914 01:16:42,780 --> 01:16:43,920 Get alerts set on your phone. 915 01:16:44,080 --> 01:16:46,820 You can log into your computer or just get email alerts. 916 01:16:47,440 --> 01:16:53,200 It's fantastic for really dialing in your irrigation system or when you're not necessarily home 917 01:16:53,200 --> 01:16:55,500 all the time and see if you're toilets leaking or something like that. 918 01:16:57,440 --> 01:17:02,360 And I would suggest there is, that's not, I mean, I may not stupid, there's a little bit 919 01:17:02,360 --> 01:17:07,180 of a slippery slope problem here anytime you have digital things that reports and records 920 01:17:07,180 --> 01:17:07,700 data. 921 01:17:08,260 --> 01:17:13,700 You know what would be a good idea is that the city passed like some sort of a data usage 922 01:17:13,700 --> 01:17:20,520 policy or a privacy policy, because while we're the most honest, sweet, loving, caring individuals 923 01:17:20,520 --> 01:17:26,080 you could ever have run in a city, the guys that may be here in 15 years may not be that way. 924 01:17:26,620 --> 01:17:33,700 And they may be wanting to know what you're doing and why and what time of day you shower and all 925 01:17:33,700 --> 01:17:39,780 these things. And so what this commission could do that would be real smart to keep the people that 926 01:17:39,780 --> 01:17:45,600 follow us in line and thinking that the people who shouldn't be smiling people would be a privacy 927 01:17:45,600 --> 01:17:51,820 policy, which spells out exactly what we do with this data and what we don't. There's 928 01:17:51,820 --> 01:18:00,380 an apple for your orchard. We'll get that to our legal department. It worked for all 929 01:18:00,380 --> 01:18:06,080 yours. Right. We have a good committee, a good lawyer on our commission that can help. 930 01:18:06,620 --> 01:18:10,500 That's great. So we'll entertain a motion if we don't have any more questions or comments. 931 01:18:12,280 --> 01:18:13,360 I'll move to approve. 932 01:18:13,940 --> 01:18:16,800 Move to approve by Commissioner Smith, seconded by Commissioner Fields. 933 01:18:17,200 --> 01:18:17,460 Let's vote. 934 01:18:21,610 --> 01:18:22,070 Thank you. 935 01:18:22,170 --> 01:18:22,590 Mr. Henry. 936 01:18:23,190 --> 01:18:23,770 Great work. 937 01:18:24,550 --> 01:18:25,430 Thank you so much. 938 01:18:25,590 --> 01:18:26,470 And you have one more. 939 01:18:27,310 --> 01:18:28,370 You have two more. 940 01:18:29,250 --> 01:18:29,410 Oh. 941 01:18:30,290 --> 01:18:30,730 Yep. 942 01:18:32,280 --> 01:18:33,460 It was in progress. 943 01:18:33,640 --> 01:18:34,360 Are we missing anybody? 944 01:18:34,660 --> 01:18:35,120 Mr. Mills. 945 01:18:36,500 --> 01:18:36,940 Again. 946 01:18:39,160 --> 01:18:39,600 No. 947 01:18:39,800 --> 01:18:40,740 This thing doesn't work. 948 01:18:41,000 --> 01:18:41,500 I see everything. 949 01:18:41,680 --> 01:18:42,220 Why are you at it? 950 01:18:42,220 --> 01:18:44,700 It means she ran a policy for Chris on Agro. 951 01:18:46,620 --> 01:18:51,060 Like paying Nintendo in the 80s, and it's not responding to my controls. 952 01:18:54,260 --> 01:18:56,540 It's not a response, I see it's not even there. 953 01:18:56,760 --> 01:18:58,540 That's right, the tech mobile, y'all remember. 954 01:18:58,980 --> 01:19:00,060 Oh, Rosa. 955 01:19:03,780 --> 01:19:05,340 I have a lot of stuff. 956 01:19:07,870 --> 01:19:08,930 Here she comes. 957 01:19:10,350 --> 01:19:11,810 It's been a long time. 958 01:19:11,810 --> 01:19:11,910 It's been a long time. 959 01:19:12,830 --> 01:19:13,010 It's been a long time. 960 01:19:13,010 --> 01:19:14,290 There we go. 961 01:19:14,530 --> 01:19:15,950 There's our technological OEMS. 962 01:19:15,950 --> 01:19:16,550 We got it. 963 01:19:16,570 --> 01:19:17,010 We got it. 964 01:19:17,170 --> 01:19:17,850 We got it. 965 01:19:18,110 --> 01:19:18,310 Okay. 966 01:19:19,810 --> 01:19:20,650 Let's stay close. 967 01:19:21,090 --> 01:19:27,010 It has passed seven to zero, and so we are on item 13, consideration of approval to purchase 968 01:19:27,010 --> 01:19:32,810 replacement vehicles for the utilities department, Anthony Henry, last and final one, utilities 969 01:19:32,810 --> 01:19:33,250 director. 970 01:19:33,750 --> 01:19:38,390 Sir, American Nation, this is also to purchase replacement vehicles under state contract. 971 01:19:38,390 --> 01:19:44,030 this will be two separate vehicles for the total of $131, $801.50. 972 01:19:44,490 --> 01:19:47,690 Unit 1773 is a 2017 F250. 973 01:19:48,150 --> 01:19:49,650 I got a picture here of what we're looking at. 974 01:19:49,930 --> 01:19:53,090 I have the helmet. 975 01:20:03,900 --> 01:20:08,180 This is a supervisor vehicle and it's just really reached this operational limit. 976 01:20:08,580 --> 01:20:12,740 The next vehicle is a Unit 1639 back in July of last year. 977 01:20:12,960 --> 01:20:15,960 This vehicle was struck and totaled on Turner Street. 978 01:20:16,720 --> 01:20:19,900 This vehicle was used as primarily our heavy-duty vehicle, it's an F350. 979 01:20:20,800 --> 01:20:24,200 We carried our oxygen bottles, the settling bottles, generators, 980 01:20:26,160 --> 01:20:27,820 compressors, things like that on it. 981 01:20:27,880 --> 01:20:31,520 We had a crane on it, but we constantly were overloading it, and we haven't had suspension work done. 982 01:20:31,680 --> 01:20:35,320 We cracked a few rims on it overloading it, so we decided to operationally. 983 01:20:35,760 --> 01:20:39,720 We've looked at upgrading this vehicle to an F450, and it will be a gas engine. 984 01:20:40,960 --> 01:20:45,940 And we're going to remove the crane off, whether we're not going to put a crane back on it. 985 01:20:45,940 --> 01:20:47,320 That will serve us a little bit better. 986 01:20:51,200 --> 01:20:52,740 Would that extend for any questions? 987 01:20:53,980 --> 01:20:55,780 Any questions or comments? 988 01:20:56,260 --> 01:20:57,320 If not, we'll entertain a motion. 989 01:20:57,600 --> 01:20:57,920 So moved. 990 01:20:58,240 --> 01:20:59,320 Moved by Mayor Pro Tem. 991 01:21:00,200 --> 01:21:02,000 Got a little and seconded by Commissioner Girth. 992 01:21:02,240 --> 01:21:02,740 That's fine. 993 01:21:08,390 --> 01:21:09,570 OK, mine went through. 994 01:21:12,010 --> 01:21:12,790 Thank you, Anthony. 995 01:21:13,230 --> 01:21:13,850 Thank you, some less. 996 01:21:14,330 --> 01:21:15,690 It has passed 7-0. 997 01:21:15,890 --> 01:21:18,430 Resolution number 7831 authorizing the mayor 998 01:21:18,430 --> 01:21:21,050 to execute a memorandum of agreement with Lee County 999 01:21:21,050 --> 01:21:26,010 for a commercial airline subsidy for fiscal year 2027 Todd Randall Assistant City Manager. 1000 01:21:26,450 --> 01:21:31,310 Basically, I'm signing this after everybody votes and gives their collective approval. 1001 01:21:31,930 --> 01:21:32,170 Correct. 1002 01:21:32,930 --> 01:21:35,930 And I'll speak to both of these are both related to the airline service. 1003 01:21:36,110 --> 01:21:39,230 This first one is, and we've aren't approved the EDC contracts. 1004 01:21:39,230 --> 01:21:41,310 The expenditures are already budgeted. 1005 01:21:41,310 --> 01:21:44,610 This is for the 5050 share for the United Service with Lee County. 1006 01:21:45,030 --> 01:21:49,490 The County share would be $2,720,982 for United. 1007 01:21:49,490 --> 01:21:54,450 again that's already in the EDC contract both payments from the county and the city will be 1008 01:21:54,450 --> 01:22:02,170 doing separately. The second resolution 7832 is for the JSX airline subsidy. This is primarily 1009 01:22:02,170 --> 01:22:10,230 funded with a raise grant through the DOT at 2.25 million. Total estimate max subsidy is 2.8 million 1010 01:22:10,230 --> 01:22:16,170 that leaves 275,000 for the city 275,000 for the county. One thing that's different about this one 1011 01:22:16,170 --> 01:22:19,610 is the county would write us a lump sum check and their dollars would be first. 1012 01:22:20,010 --> 01:22:23,710 So we would use the grant funding, there's a match, we would use the county's funding first. 1013 01:22:23,970 --> 01:22:28,450 If there's any money left over, including ours, then we would keep those dollars. 1014 01:22:30,050 --> 01:22:32,390 I have to answer any questions or comments. 1015 01:22:33,550 --> 01:22:34,450 We'll entertain a motion. 1016 01:22:35,670 --> 01:22:39,910 Move by Commissioner Garth, seconded by Commissioner Mills. 1017 01:22:40,690 --> 01:22:41,350 let's vote. 1018 01:22:47,270 --> 01:22:48,130 It was in progress. 1019 01:22:51,990 --> 01:22:59,770 It has passed six to one. All right. And resolution number 7832 1020 01:22:59,770 --> 01:23:04,090 authorizing the Mayor to execute a memorandum of agreement with Lee County for JSX airline 1021 01:23:04,090 --> 01:23:09,770 subsidy for fiscal year 2027. Todd Randall, assistant city manager. And I actually already covered 1022 01:23:09,770 --> 01:23:16,970 that one. That is a JSX one. That's sorry that you voted on the United. So the first one that was 1023 01:23:18,770 --> 01:23:38,030 So again, I spoke to the JSX, that's the Section 1 Resolution 7832, and again, that's a grant mostly funded by a grant, 2.25 raised grant, 2.8 million dollars, maximum subsidy, and again, the county's dollars would be first for their share of $275,000, there will be first and including the grant. 1024 01:23:38,490 --> 01:23:40,550 Thank you. Any questions or comments? 1025 01:23:40,550 --> 01:23:46,250 Let's entertain a motion moved, moved by Commissioner Fields, seconded by Commissioner 1026 01:23:46,250 --> 01:23:46,650 Girth. 1027 01:23:46,870 --> 01:23:47,210 Let's vote. 1028 01:23:51,430 --> 01:23:54,090 All right, vote is in progress. 1029 01:23:58,060 --> 01:23:59,580 It has passed six to one. 1030 01:23:59,780 --> 01:24:00,620 Thank you, Mr. Randall. 1031 01:24:00,760 --> 01:24:01,580 We appreciate you. 1032 01:24:01,700 --> 01:24:02,140 Thank you, Professor. 1033 01:24:02,340 --> 01:24:03,560 I know this is a long day for you. 1034 01:24:03,660 --> 01:24:04,140 And a long night. 1035 01:24:04,280 --> 01:24:05,240 Thank you for your hard work. 1036 01:24:06,520 --> 01:24:13,100 Item number 16, Resolution number 7833, approving a professional services agreement between 1037 01:24:13,100 --> 01:24:17,200 the City of Hobbes and the Hobbes Municipal Schools regarding middle school athletic programs. 1038 01:24:17,720 --> 01:24:22,380 Michael Hughes, Superintendent with the Parks and Recreation Department, thank you for being here. 1039 01:24:23,280 --> 01:24:27,440 Mayor, Mr. Mayor and Commission, thank you for your time. 1040 01:24:28,060 --> 01:24:31,700 Tonight is for your consideration of the middle school athletic program. 1041 01:24:32,080 --> 01:24:37,500 It is going on 27 years, this partnership with the city and the schools, and it's in the amount of 1042 01:24:37,500 --> 01:24:47,600 $75,000. It's a reciprocating program where we pay for the cost of coaches and for safety 1043 01:24:47,600 --> 01:24:54,680 training. They also agree to pay $75 for upgrades to shared facilities like the high school 1044 01:24:54,680 --> 01:25:00,000 tennis courts and also the Veterans Memorial Complex. So we're the high school plays softball 1045 01:25:00,000 --> 01:25:06,540 and baseball. And this program, like I said, it's almost 27 years old. It has served a lot 1046 01:25:06,540 --> 01:25:15,460 of youth community. And I have an email from the athletic director that I'd like to read real quick, 1047 01:25:15,740 --> 01:25:22,640 much years on. We hope we can continue the partnership with the city. Sports have been thriving 1048 01:25:22,640 --> 01:25:29,900 at the lower levels and grow every year. The parents and kids love how it gives them something to do 1049 01:25:29,900 --> 01:25:34,580 and is also competitive for them. Please let us know if there's anything you can do from us. 1050 01:25:34,580 --> 01:25:40,360 The volleyball numbers from this past year, there were 267 girls that participated in that 1051 01:25:40,360 --> 01:25:40,760 program. 1052 01:25:41,300 --> 01:25:45,200 The basketball program, which is boys and girls, had 250 kids. 1053 01:25:45,780 --> 01:25:48,860 The football program had 310 kids as well. 1054 01:25:49,380 --> 01:25:52,560 If you have any questions, I'd be happy to answer them at this time. 1055 01:25:53,580 --> 01:25:54,460 Questions or comments? 1056 01:25:55,520 --> 01:25:57,740 If not, we'll entertain a motion in a second. 1057 01:25:58,000 --> 01:25:58,320 Move. 1058 01:25:58,640 --> 01:26:00,080 Move by Mayor Pro Tem Calderón. 1059 01:26:00,860 --> 01:26:01,380 Second. 1060 01:26:01,600 --> 01:26:02,880 Seconded by Commissioner Girth. 1061 01:26:05,920 --> 01:26:11,180 We appreciate you Mr. Hughes, you're a hard worker and I love how you care about the 1062 01:26:11,180 --> 01:26:15,900 team members that serve under you, that serve under your leadership and how you care 1063 01:26:15,900 --> 01:26:16,640 about young people. 1064 01:26:16,900 --> 01:26:17,280 So thank you. 1065 01:26:17,340 --> 01:26:17,600 It shows. 1066 01:26:18,020 --> 01:26:18,260 Thank you. 1067 01:26:18,400 --> 01:26:19,520 That has passed 7-0. 1068 01:26:20,920 --> 01:26:21,560 Comments you buy. 1069 01:26:21,940 --> 01:26:22,660 Thank you so much. 1070 01:26:23,040 --> 01:26:25,620 Comments by City Commissioners and City Manager, Commissioner Smith. 1071 01:26:25,920 --> 01:26:26,800 I'm good to know Mayor. 1072 01:26:26,920 --> 01:26:27,240 Thank you. 1073 01:26:27,680 --> 01:26:28,440 Commissioner Pinnick. 1074 01:26:30,670 --> 01:26:31,850 I've got a lot on the table. 1075 01:26:31,870 --> 01:26:32,310 I'm going to pass. 1076 01:26:33,270 --> 01:26:33,550 All right. 1077 01:26:33,930 --> 01:26:34,890 Mayor Proto and Calderon. 1078 01:26:34,890 --> 01:26:37,530 Yeah, thank you for the railroad track and your 1079 01:26:38,290 --> 01:26:41,790 Yes, can we get ready to talk 1080 01:26:44,190 --> 01:26:47,550 about all the big things out there, right? 1081 01:26:49,470 --> 01:26:53,990 Thank you anything else from your approach? All right, Commissioner Phil. Yeah, I just want to thank you 1082 01:26:53,990 --> 01:26:59,930 I just want to say that you know I encourage those who may be watching us to or even those 1083 01:27:00,730 --> 01:27:08,430 No, there are people who has no idea in terms of what really goes on 1084 01:27:08,430 --> 01:27:14,910 But when you come to the meetings, you'll find out what's going on and what the city is 1085 01:27:14,910 --> 01:27:15,270 doing. 1086 01:27:16,150 --> 01:27:22,630 But for someone to just sit out there and think that we're just making decisions without 1087 01:27:22,630 --> 01:27:25,250 thoroughly thinking about it, it's not fair. 1088 01:27:26,350 --> 01:27:33,390 And so I just encourage those who are listening or those who come to our meetings, listen and 1089 01:27:33,390 --> 01:27:39,550 They would understand exactly what we're doing here of making decisions for the City of 1090 01:27:39,550 --> 01:27:45,790 Hobbes not an easy thing because we're making decisions as based on the citizens here 1091 01:27:45,790 --> 01:27:53,210 in Hobbes and so for someone to assume this, that, or the other, that's not fair. 1092 01:27:54,110 --> 01:27:55,150 Thank you. 1093 01:27:55,270 --> 01:27:55,750 Thank you, sir. 1094 01:27:55,850 --> 01:27:56,250 Commissioner Mills. 1095 01:27:56,690 --> 01:28:01,550 I'd like to thank Chief Jones for a brand new two-sided decision making quarter that he 1096 01:28:01,550 --> 01:28:02,010 gave us. 1097 01:28:02,010 --> 01:28:04,650 Yes, which is what I lift, so thank you. 1098 01:28:06,130 --> 01:28:07,050 Mr. McGurth? 1099 01:28:07,410 --> 01:28:07,830 I'm good. 1100 01:28:08,310 --> 01:28:08,630 All right. 1101 01:28:08,770 --> 01:28:10,190 I want to thank all the staff members. 1102 01:28:10,330 --> 01:28:12,730 You've been going through all the budget cuts and everything else for years. 1103 01:28:13,370 --> 01:28:15,070 And so I want to thank you for your hard work. 1104 01:28:15,390 --> 01:28:19,090 And I just want you to know the conversations we're having tonight, financially, they're 1105 01:28:19,090 --> 01:28:20,570 hard conversations, no doubt. 1106 01:28:21,150 --> 01:28:22,470 But I just want you to know we're listening. 1107 01:28:23,070 --> 01:28:26,290 When you're speaking about what needs to be fixed in the city, when you're speaking 1108 01:28:26,290 --> 01:28:30,430 about, you know, need for more firefighters and more police officers. 1109 01:28:30,430 --> 01:28:31,150 We're hearing you. 1110 01:28:31,150 --> 01:28:36,290 We're here and that's that's this conversation tonight and we appreciate the members of the press 1111 01:28:37,130 --> 01:28:41,350 And he'd be in here on the new Sun and we just want the community just to look at what we're looking at 1112 01:28:41,350 --> 01:28:42,990 To look at to look at the numbers 1113 01:28:42,990 --> 01:28:47,410 We're looking at to look in what what we're doing and to see how we want to move forward 1114 01:28:47,410 --> 01:28:52,950 And we just appreciate your indulgence tonight. Thank you. Thank you so much. Mr. Gomez. Thank you, Mayor Commission 1115 01:28:52,950 --> 01:29:00,130 Just a couple of three slides one and just a reminder that our water conservation period is ending soon 1116 01:29:00,130 --> 01:29:07,130 September 15th is the last day so I do appreciate all those that help conserve our 1117 01:29:07,130 --> 01:29:11,230 Arizona's precious natural resource and thank you for our utilities 1118 01:29:11,230 --> 01:29:17,830 department to supervise and facilitate that so again just a reminder and the 1119 01:29:17,830 --> 01:29:25,870 second slide obviously you know 25 years ago this week I was a young acting 1120 01:29:25,870 --> 01:29:36,070 fire chief, when 9-11 change our nation, change the fire service, you know, and a lot of confusion, 1121 01:29:36,330 --> 01:29:44,050 a lot of just different shock just throughout, and I recall being at fire station one, but one of 1122 01:29:44,050 --> 01:29:50,990 the things that we committed was to never forget, and I think that our nation has communicated that, 1123 01:29:50,990 --> 01:29:59,630 and I want to thank each HFD, HPD, and our public safety community for continuing. 1124 01:30:00,820 --> 01:30:28,060 To allow others that probably have no idea what occurred to never forget. So again, this Friday, September 11th, the 25th anniversary. The stair climb is at 9 a.m. at Watson Stadium. And then on a run at 8 a.m., which would be, could you put that back? Thank you. Again, and that would be, where's that chief at the? 1125 01:30:29,280 --> 01:30:31,600 And Watson Stadium as well, okay. 1126 01:30:31,940 --> 01:30:36,500 So again, two thousand seventy one steps, we obviously climb to remember. 1127 01:30:36,800 --> 01:30:38,240 So thank you. 1128 01:30:38,900 --> 01:30:44,440 Last slide is National Cleanup Month, and want to thank Evelyn and Nunez for her leadership, 1129 01:30:44,900 --> 01:30:47,540 but just like anything else, we need volunteers. 1130 01:30:48,280 --> 01:30:52,140 So three different dates and three different locations. 1131 01:30:52,500 --> 01:30:57,540 This Tuesday, September 15th, trying to beat the heat, I guess. 1132 01:30:57,540 --> 01:31:05,480 at City Park from 4 p.m. to 5 p.m. and then again that following Tuesday September 22nd at 1133 01:31:05,480 --> 01:31:13,040 McCadden's Park 4 to 5 p.m. and then Tuesday the 29th at Green Metal's Park. So again Evelyn thank 1134 01:31:13,040 --> 01:31:19,820 you and I hope to see our citizens out there. Miss Evelyn maybe Miss Julie can help us too. 1135 01:31:19,860 --> 01:31:24,620 Could you just send us emails, reminders of all of those things? That would be help so much. 1136 01:31:24,620 --> 01:31:31,880 I don't invite. I speak for myself. I need a lot of reminders and sticky notes. Oh, yes, 1137 01:31:32,040 --> 01:31:36,940 calendar invites for be great. Yes, calendar invites. All of the above sticky notes. Oh, 1138 01:31:37,020 --> 01:31:43,480 yes, sir. Do you want to make one simple comment about the comment about less minister 1139 01:31:43,480 --> 01:31:47,780 getting to have a town hall that was just want to make that clear? That was done by the 1140 01:31:47,780 --> 01:31:53,120 people who live out there that asked to have a meeting concerning that 5G tower. If any 1141 01:31:53,120 --> 01:31:58,440 citizen has an issue that's important to them. I don't care where you live. My 1142 01:31:58,440 --> 01:32:02,200 phone number is public and please call me because I'm willing to listen to 1143 01:32:02,200 --> 01:32:06,600 anything anybody has to say. And I don't care if it's my district or any of 1144 01:32:06,600 --> 01:32:11,540 these gentlemen's district. I want to hear it if it's important to you. But we 1145 01:32:11,540 --> 01:32:17,500 would more than willingly any time have a town hall with an issue that's 1146 01:32:17,500 --> 01:32:23,800 important to you. So that that can be brought up if you can reach out to any of us and then it 1147 01:32:23,800 --> 01:32:29,320 would be happy to hear, but that was brought that was actually put together by citizens that live in 1148 01:32:29,320 --> 01:32:34,120 that community, not the city of Hobbes. Good point. When I used to tell Jack Andrews our good friend 1149 01:32:34,120 --> 01:32:38,920 from back in the day, some of you may remember Jack Andrews, I sat down with him at Prey Rose Cafe 1150 01:32:38,920 --> 01:32:43,760 and I said, Hey, here's my phone number. He said, Man, that three minutes is too short. I said, 1151 01:32:43,760 --> 01:32:49,740 You know what? Here's my phone number. We'll meet for two hours. So you can sit with us anytime these good folks are up here 1152 01:32:49,740 --> 01:32:54,560 They give their lives every day to serve the community and members of the public. Please contact us, man 1153 01:32:54,560 --> 01:32:58,600 We want to sit and visit with you. So thank you so much. We'll entertain a motion to the journey 1154 01:32:59,440 --> 01:33:04,080 Moved and second in the motion seconded by Commissioner Pinnick. All in favor 1155 01:33:04,080 --> 01:33:05,940 Have a great evening