[1.A FY2027 City of Georgetown Workshop Budget and Tax Rate]
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          TO CALL US TO ORDER, AND WE'RE GOING TO GET STARTED ON OUR WORKSHOP. AS WE GO THROUGH THE BUDGET PROCESS HERE, WE GOT SOME NEW FOLKS AND JUST KIND OF WANT TO TALK ABOUT HOW WE'RE GOING TO GO THROUGH THIS. PROCEDURALLY, DAVID AND THE TEAM ARE GOING TO BE PRESENTING THE BUDGET. THEY ARE GOING TO MOVE AS SLOW OR FAST AS WE NEED THEM TO, DEPENDING ON HOW MANY QUESTIONS COMMENTS WE HAVE. BUT SINCE WE ARE TRYING TO MOVE TOWARDS A FINAL BUDGET, THE KIND OF THE RULE THAT WE'VE USED IN THE PAST AND THAT WE'RE GOING TO USE THIS TIME IS THAT NOW IS YOUR TIME TO SPEAK, AND SILENCE IS CONSENT. SO DON'T FEEL LIKE YOU GOT TO STOP AND SAY YES TO EVERYTHING. BUT AS WE GO THROUGH THE SECTIONS, IF YOU HAVE SOMETHING, NOW'S THE TIME TO SAY IT. AND IF YOU DON'T SAY ANYTHING, WE'RE GOING TO ASSUME THAT EVERYBODY'S ON BOARD WITH IT. SO KIND OF SPEAK NOW OR FOREVER HOLD YOUR PEACE. BUT I'M GOING TO TURN IT OVER TO DAVID AND LET HIM RUN WITH IT. YEAH. THANK YOU, MAYOR AND COUNCIL, I APPRECIATE THE EARLIER TIME TODAY TO REVIEW KIND OF OUR DRAFT OF OUR BUDGET. IT'S IT'S COMING TOGETHER. AND AS THE MAYOR INDICATED, THIS IS AN ITERATIVE PROCESS. SO THIS IS NOT THE ONLY TIME YOU'LL SEE THE BUDGET, BUT IT'S REALLY CRITICAL FOR US TO MAKE SURE THAT AS WE PUT THIS BUDGET TOGETHER, THAT WE'RE HITTING THE MARK AND WHAT YOU ALL WANT TO SEE IN A PROPOSED BUDGET. SO THE MORE FEEDBACK AND DIRECTION WE CAN GET EARLY, THE BETTER WE CAN MAKE SURE THAT WE MEET, MEET YOUR CONSENSUS, AND MEET YOUR GOALS OF WHAT YOU'RE TRYING TO ACHIEVE THROUGH THIS NEXT FISCAL YEAR'S BUDGET. SO. OOPS, SORRY ABOUT THAT. OKAY, SO, SO THE PURPOSE OF TODAY IS TO JUST BE ABLE TO EXPLAIN KIND OF THE CONTEXT OF HOW THIS BUDGET HAS COME TOGETHER TO GIVE SOME DETAIL AROUND WHAT'S PROPOSED IN THE BUDGET. OBVIOUSLY, RECEIVE COUNCIL FEEDBACK AS WE WORK TOWARDS THE OFFICIAL PROPOSED BUDGET OF AUGUST 11TH. AND THEN WE'LL JUST REVIEW KIND OF NEXT STEPS IN OUR PROCESS AS WE MOVE FORWARD IN TERMS OF WHERE WE FIND OURSELVES, YOU'RE NOT GOING TO BE SURPRISED BY ANY OF ANY OF THIS, BUT I THINK IT IS IMPORTANT TO TALK ABOUT ON THE FRONT END. JUST TO GIVE THE CONTEXT OF HOW THIS BUDGET WAS DEVELOPED. ONE IS WE STILL CAN SEE GROWTH IN GEORGETOWN, BUT IT'S SLOWER THAN WHAT WE'VE SEEN IN RECENT YEARS, AND THAT'S REFLECTED IN SOME OF OUR REVENUES. BUT I THINK IT'S ALSO TO UNDERSTAND THAT THE CITY CONTINUES TO FEEL THE IMPACTS OF THE PAST DECADE OF RAPID GROWTH AND EXPANSION. SO WE'RE SEEING PROPERTY TAX PLATEAU SALES TAXES PLATEAUING, BUT WE CONTINUE TO SEE INCREASED OPERATIONAL EXPENSES. YOU'LL SEE THAT WE'RE PROVIDING A RECORD AMOUNT OF INFRASTRUCTURE INVESTMENT. AND IN FACT, THIS IS THE SECOND YEAR IN A ROW WHERE THE OVERALL BUDGET PROPOSED BUDGET IS ANTICIPATED TO BE THE CAPITAL EXPENSE. 
          INFRASTRUCTURE EXPENSE IS ANTICIPATED TO BE LARGER THAN THE OPERATIONAL EXPENSE OF THE CITY. AND SO AND SO WE'LL GO OVER THAT CAPITAL IMPROVEMENT PLAN. BUT AGAIN, WE'VE GONE OVER MULTIPLE PLANS OF OUR CAPITAL IMPROVEMENT PLANS IN PREVIOUS WORKSHOPS. WE ALSO REALLY WORK. THIS BUDGET REALLY WORKS TO ALIGN WITH COUNCIL GOALS AND PUBLIC ENGAGEMENT FEEDBACK THROUGH A VARIETY OF SURVEYS. THROUGH YOUR COUNCIL GOAL SETTING SESSIONS, WE BELIEVE THAT WE'RE ON TARGET TO SAY THAT THAT, YOU KNOW, AN EMPHASIS OF THIS BUDGET, EMPHASIS OF A COMMUNITY PRIORITIES ARE TO EMPHASIZE PUBLIC SAFETY, ROAD, ROAD EXPANSION IN ORDER TO IMPROVE TRAFFIC FLOW, AS WELL AS INVEST IN WATER RESOURCES. SO HERE ARE THE SIX KEY THEMES OF THE BUDGET AS IT'S BEEN PUT TOGETHER FOR FY 27. AND WE'LL GO THROUGH EACH ONE OF THESE. FIRST IS PUBLIC SAFETY RESOURCE INVESTMENT, STRATEGIC INFRASTRUCTURE INVESTMENT, RELIABLE SERVICE DELIVERY THAT INCORPORATES FEEDBACK FROM OUR CITIZEN SURVEY, INVESTING IN OUR PEOPLE, RECOGNIZING THAT WE'RE A LARGE, YOU KNOW, ORGANIZATIONS MADE UP OF MOSTLY MOSTLY THE COSTS ARE EMPLOYEES AND CONTINUED STRONG FINANCIAL STEWARDSHIP. AND WE'LL TALK ABOUT HOW WE'RE MAINTAINING THAT THROUGH THIS PROPOSED BUDGET, AS WELL AS JUST ADDRESSING FINANCIAL TRENDS IN THE CURRENT ECONOMY AND RECOGNIZING THAT ADJUSTING NATURE OF OUR PROPERTY TAX AND SALES TAX GROWTH, AND ALSO WHAT WE'RE SEEING IN TERMS OF LARGE UTILITY GROWTH AND HOW THAT GETS TRANSLATED THROUGH OUR PAYMENT LOOP TAXES. SO IN TERMS OF PUBLIC SAFETY RESOURCE INVESTMENT, WE CONTINUE TO HAVE MARKET COMPENSATION STEP INCREASES FOR FIRE AND POLICE. THAT CONTINUES TO BE A SIGNIFICANT COST FOR US. AND WE'LL TALK ABOUT THAT WHEN IN ANOTHER SECTION OF THE BUDGET, WE'RE DESIGNING AND CONSTRUCTING AND STAFFING NEW STATION EIGHT. AND SO THIS IS THE SECOND YEAR THAT YOU'LL SEE STAFFING FOR SPECIFICALLY TO GET READY FOR STATION EIGHT OPENING IN 2028. AND THEN ALSO WE HAVE PLANS FOR DESIGNS FOR STATION EIGHT. WE HAVE ADDITIONS TO PATROL AND DETECTIVES TO ADDRESS WORKLOAD RESPONSES, MAKING SURE THAT WE'RE INCREASING OPPORTUNITIES FOR PROACTIVE POLICING AS WELL AS CRIME PREVENTION AND 
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REDUCING OVERALL INDIVIDUAL CASELOAD, AND THEN JUST RECOGNIZING THE CAPACITY THAT WE NEED TO HAVE FOR ADDRESSING COMPLEX CRIMES. THIS BUDGET ALSO INCLUDES THE REALLY IMPORTANT PARTNERSHIP THAT WE HAVE WITH ISD EIGHT, AS WELL AS WITH THE GSD, AS WELL WITH SCHOOL RESOURCE OFFICERS. FROM A STRATEGIC INVESTMENT STANDPOINT, THE MAJORITY, LIKE I MENTIONED, THE MAJORITY OF OUR PROPOSED BUDGET IS FOCUSED ON INFRASTRUCTURE INVESTMENT OVER $800 MILLION, 800 AND OVER $860 MILLION WORTH. SIGNIFICANT PROGRESS HAS BEEN MADE ON THE ROAD BOND. YOU'LL CONTINUE TO SEE THAT THROUGH THIS NEXT BUDGET CYCLE, AS WELL AS SIGNIFICANT IMPROVEMENTS TO INTERSECTIONS. INTERSECTION CAPACITY. YOU'LL SEE PLANS FOR LONG TERM WATER ENSURING RELIABLE SOURCE NOT ONLY TO MEET TODAY'S, BUT FUTURE DEMANDS, AS WELL AS YOU'LL SEE, JUST ONGOING GROWTH WITHIN OUR ELECTRIC AND WATER UTILITY AND COMMITMENTS TO MAINTENANCE AND SYSTEM RELIABILITY IN BOTH OF THOSE UTILITIES, AS WELL AS CONTINUED INVESTMENT IN OUR NEIGHBORHOOD PARKS AS WE HAVE GROWTH IN SUBDIVISIONS AS WELL AS RENEWAL OF EXISTING PARK SYSTEM, WHICH WE HAVE PLANNED IN THE BUDGET. THIS IS JUST, YOU KNOW, TO BE ABLE TO GIVE SOME CONTEXT IN TERMS OF OUR RELIABLE SERVICE DELIVERY, THE RECENT SURVEY RESULTS THAT WE HAD DONE, WHICH IS CITYWIDE AND STATISTICALLY VALID AND COMPARES STATE AND NATIONAL AVERAGE, YOU'LL SEE THAT GEORGETOWN REALLY SETS THE STANDARDS FOR SERVICES WHEN COMPARED TO OTHER COMMUNITIES. GEORGETOWN RATES ALMOST 40% HIGHER THAN OTHER THAN THE STATE AVERAGE FOR QUALITY SERVICES. AND THE CITY'S IS RATED HIGHER IN 47 OF THE 49 BENCHMARKING AREAS OF NATIONAL STATE AVERAGES, PERCEPTION OF THE CITY IS EXTREMELY HIGH. 90% OF RESIDENTS INDICATE THEY'RE VERY SATISFIED OR SATISFIED WITH GEORGETOWN AS A PLACE TO LIVE, 40% HIGHER THAN 40 PERCENTAGE POINTS, ACTUALLY HIGHER THAN THE STATE AVERAGE, AND THEN STRONG CUSTOMER SERVICE. SO 72% OF RESPONDENTS SAID THAT THEY RECEIVED EXCELLENT OR GOOD SERVICE WHEN CONTACTING THE CITY ON AN ISSUE. 
          SO FROM THE SURVEY RESULTS, RESIDENTS SHARED PRIORITIES SHOULD BE ON TRAFFIC FLOW, ECONOMIC DEVELOPMENT OPPORTUNITIES AND WATER RESOURCE DEVELOPMENT, WHICH ARE REFLECTED WITHIN THE PROPOSED BUDGET. WE ALSO CONTINUE TO RECOGNIZE THAT SGT IS CONTINUES TO GROW AS A KEY CUSTOMER SERVICE FEATURE FOR FOR RESIDENTS. SO YOU CAN SEE HERE THE METRICS BELOW IN TERMS OF HOW MANY INTERACTIONS AND TICKETS HAVE BEEN SUBMITTED, HOW MANY KNOWLEDGE BASE ARTICLES HAVE BEEN VIEWED, AND HOW MANY APPS WE'VE HAD. THAT'S 3000, NOT 300 DOWNLOADED ON APPS THAT HAVE BEEN DOWNLOADED. AND THEN WE ALSO BELIEVE, YOU KNOW, REGT IS DEFINITELY AN IMPORTANT CUSTOMER SERVICE ELEMENT AND A PART OF A RELIABLE SERVICE DELIVERY. AND WE'VE SEEN THAT CONTINUE TO GROW. AND THEN FUNDING FOR THAT SERVICE IS REFLECTED WITHIN THIS YEAR'S BUDGET AS WELL. SO INVESTING IN OUR PEOPLE, WE CONTINUE TO FOCUS ON BEING AN EMPLOYER OF CHOICE BY MAINTAINING STRONG COMPENSATION AND BENEFITS, HAVING TRAINING AND DEVELOPMENT PROGRAMS THAT CONTINUE TO BE FUNDED AND PRIORITIZED AND UNDER COMPENSATION AND BENEFITS. THE CURRENT BUDGET HAS A PLAN, 3% MERIT INCREASE FOR EMPLOYEES AS WELL AS MARKET REVIEW FOR NON. THESE ARE FOR NON ALL NON CIVIL SERVICE EMPLOYEES. THAT COMES AT A COST OF $2.2 MILLION. AND AGAIN THAT'S THAT'S ACROSS THE GENERAL FUND THE WATER UTILITY ELECTRIC FUND ALL THE OTHER FUNDS IN THE CITY. WE ALSO INCLUDE STEP PLANS AS WELL AS AND MARKET PLANS IN CIVIL SERVICE FOR PUBLIC SAFETY. THAT ALSO IS FUNDED AT TWO. THAT'S A COST OF $2.2 MILLION. THAT INCLUDES FIRE. FIRE STAFFING WILL RECEIVE BETWEEN A SEVEN AND 10% PAY INCREASE OVER THIS NEXT YEAR. THAT'S ABOUT A 5% MARKET INCREASE. AND THEN BETWEEN A FIVE AND A AND A 2% STEP INCREASE, DEPENDING UPON WHERE THOSE EMPLOYEES ARE WITHIN THEIR STEP PROGRAM ALSO INCLUDES INCREASES TO THEIR CERTIFICATION AND ASSIGNMENT PAY. AND THEN UNDER POLICE STAFFING, A 10% PAY INCREASE. 
          AGAIN, MARKET INCREASES ARE APPROXIMATELY 5% AND STEP INCREASES ARE BETWEEN 5 AND 2%, DEPENDING UPON WHERE THEY ARE. THIS BUDGET ALSO INCLUDES INCREASING THE CITY'S PORTION OF MEDICAL INSURANCE CONTRIBUTION TO THE SELF-INSURANCE FUND AT 7%, BUT WE WE DO NOT BELIEVE WE WILL NEED TO HAVE INCREASED CONTRIBUTIONS ON THE EMPLOYEE SIDE. AND SO WE'LL BE ABLE TO TO KEEP PREMIUMS. IN FACT, WE'RE LOOKING AT ADDING SOME ADDITIONAL INSURANCE OPTIONS FOR PEOPLE TO GIVE MORE OPTIONS OTHER THAN OUR TWO HSA AND PPA, PPO PROGRAM RIGHT NOW. BUT THE RESERVES MAIN HEALTHY AND THE SELF-INSURANCE FUND. SO ALL OF THIS IS IS BASED ON THE FOUNDATION OF STRONG FINANCIAL STEWARDSHIP. SO WE CONTINUE TO HAVE A CONSERVATIVE FINANCIAL FORECASTING AS WELL AS REVENUE AND SUSTAINABLE, YOU KNOW, REDUCTIONS IN EXPENSES. WE MAINTAIN HEALTHY RESERVES IN ALL OF OUR DIFFERENT FUNDS AND 
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BUILDING RESERVES IN A COUPLE OF AREAS THAT DON'T HAVE HAVEN'T FULLY HIT THEIR TARGET. 
          WE ALSO HAVE MAINTAINED THIS YEAR OUR TRIPLE A BOND RATING FOR GENERAL FUND, AS WELL AS DOUBLE A PLUS FOR OUR REVENUE BONDS. IN TERMS OF SOME OF THE FINANCIAL TRENDS, WE THOUGHT THIS WOULD BE HELPFUL FOR YOU TO SEE JUST A LITTLE BIT CLOSER. ONE OF OUR MAJOR ONE OF OUR MAJOR REVENUE SOURCES IN THE GENERAL FUND IS SALES TAX. SO SO WE RECOGNIZE THAT WE'RE SEEING SOME OF OUR COSTS SPECIFICALLY IN STAFFING, TECHNOLOGY COSTS, SOFTWARE COST, AND SPECIFICALLY IN PUBLIC SAFETY, KIND OF STARTING TO OUTPACE OUR REVENUE GROWTH. SO WE'VE SEEN PROPERTY TAX AND WE'LL GET INTO MORE DETAIL ON PROPERTY TAX, SLOWER GROWTH TRENDS COMPARED TO PREVIOUS YEARS, AS WELL AS A CHANGE IN RETAIL SECTOR SALES. AND SO OUR LARGEST RETAIL, OUR LARGEST SECTOR IS RETAIL. AND SO THIS SHOWS YOU BELOW JUST SALES TAX GROWTH IN THE RETAIL AND HOW THAT'S SHIFTED OVER TIME. YOU CAN SEE HERE BACK IN 2021 2022, SEEING SIGNIFICANT GROWTH IN, IN, IN SALES TAX, JUST AS A, FROM A, FROM A RETAIL STANDPOINT, THIS THIS CHART SHOWS COMBINING PROPERTY TAX AND SALES TAX GROWTH FROM 2022 TO 2027. AND YOU CAN SEE THAT THE GROWTH BETWEEN THOSE TWO MAJOR REVENUE SOURCES AND THE CHANGES WE'VE SEEN IN PUBLIC SAFETY'S EXPENSE ON THE PUBLIC SAFETY SIDE. SO THAT'S WHAT I'M SAYING IS WE'RE SEEING HAVE CONCERNS AND WE'RE SEEING CERTAIN SOME SOME OF OUR MAJOR REVENUE SOURCES NOT KEEPING UP WITH WHAT WE'RE SEEING FROM FROM GROWTH IN OUR MAJOR COST DRIVERS IN THE GENERAL FUND. THIS IS ANOTHER WAY TO LOOK AT JUST PUBLIC SAFETY SPECIFICALLY. 
          SPLIT OUT POLICE EXPENSE AND FIRE EXPENSE, AND JUST SHOWED THAT GROWTH AS A PERCENTAGE FROM 2022 TO 2024, SEEING THAT THERE HAS BEEN A 24% IN THE GENERAL FUND OVER THAT OVER THAT PERIOD OF TIME. AND THEN YOU CAN SEE WHAT THE GROWTH IS IN POLICE EXPENSE AND FIRE EXPENSE. I ALSO WANT TO QUALIFY THIS SLIDE THAT THIS JUST IS EXPENSE. SO THERE ARE SOME OFFSETTING REVENUES MORE MORE ACTUALLY A LARGER OFFSETTING REVENUE IN FIRE BECAUSE OF THE PORTION OF ESD EIGHT, THE ESD FUNDING RECEIVED AS A PART OF OUR PARTNERSHIP AGREEMENT AS WELL AS EMS REVENUES. BUT THIS JUST JUST SHOWING PURE EXPENSE SHOWS THE GROWTH WITHIN OUR GENERAL FUND. THE OTHER DYNAMIC THAT WE FIND THAT WE WE SEE IS ALSO GROWTH, MORE LARGER GROWTH IN PAYMENT IN LIEU OF TAXES, OUR POLICIES CONTINUE TO STAY THE SAME. SO THOSE POLICIES HAVE NOT CHANGED IN TERMS OF PERCENTAGES AND METHODOLOGY FOR THE PAYMENT OF TAXES THAT OCCUR FROM OUR UTILITIES INTO OUR GENERAL FUND. BUT THE PERCENTAGE BUT THE AMOUNT HAS CHANGED OVER TIME BASED ON THE GROWTH OF BOTH THE WATER UTILITY AND SPECIFICALLY THE ELECTRIC UTILITY, ESPECIALLY OVER THE LAST FEW YEARS WITH VERY LARGE LOADS THAT ARE COMING INTO OUR ELECTRIC SYSTEM. AND SO AND SO YOU CAN SEE HERE AS A PERCENTAGE OF THE BUDGET, HOW IT'S NOW JUST PILOT OVERALL REPRESENTS 17% OF THE GENERAL FUND REVENUE. AND THE KEY WAY IN WHICH WE'RE MITIGATING THE RISK, BECAUSE WE RECOGNIZE THAT THIS REVENUE SOURCE CAN BE MORE VOLATILE THAN, THAN, YOU KNOW, THAN, THAN PROPERTY TAX FOR SURE. AND EVEN EVEN MOSTLY SALES TAX TOO, IS THAT WE HAVE THE REVENUE STABILITY RESERVE, AND THAT'S AN ADDITIONAL RESERVE ABOVE OR ABOVE OUR 90 DAY RESERVE THAT ALLOWS FOR US TO HOLD BACK 8% OF OUR EXPENSE SO THAT IT CAN ACCOMMODATE ADJUSTMENTS IN REVENUE THAT AREN'T ON TARGET. AND YOU'LL RECALL, WE ACTUALLY UTILIZE THAT OVER THIS LAST YEAR AND REPLENISH THAT AS A PART OF THIS PROPOSED BUDGET FOR 2027. SO, SO UNDER ELECTRIC UTILITY, YOU'LL SEE HERE THAT THE IMPACT ASSOCIATED WITH THE PILOT AND, AND, AND AS I MENTIONED, IT'S VERY LARGE, LARGE LOADS. WE RECOGNIZE THAT THERE IS SOME UNPREDICTABILITY WITH THAT. AND SO WE WERE MITIGATING THROUGH A RISK MANAGEMENT POLICIES. AND WE ALSO HAVE A VERY CONSERVATIVE FORECAST FROM OUR ELECTRIC UTILITY REGARDING, YOU KNOW, DISCOUNTING CONSUMPTION THAT'S ANTICIPATED AND ALSO DISCOUNTING ANTICIPATED NEW GROWTH OF NEW CUSTOMERS. WE ALSO HAVE THE SAME THING IN TERMS OF JUST VOLATILITY RELATED TO OUR WATER UTILITY AND REVENUE WITHIN OUR WATER UTILITY. KIND OF MOVING ON TO THE LAST PORTION OF KIND OF THE INTRO SLIDES, AS BEFORE, WE GET INTO THE BUDGET ITSELF, THE THIS IS JUST SHOWING YOU THAT THIS IS NOT THE FIRST TIME YOU'VE HEARD ABOUT THE BUDGET. THIS IS KIND OF BUILDING WE BUILD ALL YEAR ROUND TO, TO BUILD THE BUDGET FOR THE NEXT YEAR. THESE ARE DIFFERENT PRESENTATIONS THAT HAVE BEEN MADE TO YOU OVER THAT PERIOD OF TIME. YOU'LL SEE CAPITAL IMPROVEMENT BUDGETS ARE PLANS 
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BEING BROUGHT IN IN THE MAY TIME FRAME. COST OF SERVICE STUDIES HAVE BEEN BROUGHT IN IN THE MAY AND JUNE TIME FRAME. LONG RANGE PLANNING ON WATER AND LONG RANGE PLANNING ON POLICE AND FIRE AS WELL AS ELECTRIC. AND SO THESE ARE ALL THE BUILDING BLOCKS TO GET TO THE BUDGET THAT WE HAVE. FOR YOUR CONSIDERATION TODAY. AND AS THE MAYOR INDICATED ON THE FRONT END, THIS IS PRELIMINARY IN NATURE. WE HAVE NOT LANDED THE BUDGET PLANE. WE'RE GOING TO PROPOSE THE BUDGET OFFICIALLY ON AUGUST 11TH AND COMPLIANCE WITH THE CITY CHARTER. SO WE RECOGNIZE TODAY IS A WORK IN PROGRESS. THERE MIGHT BE SOME THINGS THAT, YOU KNOW, THEIR ESTIMATES RIGHT NOW THAT GET MORE FINELY TUNED AS WE GET INTO JULY AND INTO AUGUST. SO THERE COULD BE SOME NUMBERS THAT CHANGE FROM NOW UNTIL THAT TIME. BUT WE AGAIN WANT TO SHOW YOU HOW THE BUDGET IS SHAPING UP AT THIS TIME. MAKE SURE WE'RE GATHERING THE FEEDBACK FROM YOU. WE DO HAVE THE PRESENTATION, SO WE'RE GOING TO BE WORKING THROUGH THIS PRESENTATION. IT I'M NOT GOING TO ADMIT TO HOW MANY SLIDES ARE IN THIS POWERPOINT PRESENTATION. THERE ARE A LOT. BUT I WILL TELL YOU, IT'S LESS SLIDES THAN PAGES WITHIN THE BUDGET WORKBOOK. SO YOU'VE GOT A LINK TO THE CLEAR GOV AND THAT'S AVAILABLE TO, TO THE PUBLIC AS WELL, WHERE IT HAS MORE DETAILED NARRATIVES AND FUND SCHEDULES IN THE BUDGET BOOK. SO THAT IS AVAILABLE TO YOU. AND OBVIOUSLY WE HAVE THE, THE POWERPOINT THAT WE'LL BE GOING THROUGH THAT'S HIGHLIGHTING KEY PIECES AND KEY ELEMENTS OF THE BUDGET ITSELF. 
          SO THE OVERALL BUDGET IS WE ANTICIPATE IT BEING PROPOSED AT 1.6 BILLION. AS I MENTIONED, THE MAJORITY OF THAT IS CAPITAL. SO YOU CAN SEE HERE THAT. THAT THE CAPITAL THAT. YEAH, SORRY ABOUT THAT. I GOT THIS I LOOKED AT THE SLIDE DIFFERENTLY. OKAY. SO THE OPERATING BUDGET OF 733 MILLION. YOU CAN SEE HERE HOW THAT'S DIVIDED UP BETWEEN THE DIFFERENT FUNDS, THE MAJOR FUNDS. NOT SURPRISING. WATER IS THE LARGEST FUND WITH ACTUALLY ELECTRIC UTILITY NOW BEING THE SECOND LARGEST FUND AND THE GENERAL FUND BEING THE THIRD UNDER THE NONOPERATING, WHICH IS CAPITAL SIDE. YOU CAN SEE HERE THE LARGE MAJORITY OF THE CAPITAL BUDGET OF 876 MILLION IS IS MADE UP OF THE WATER WATER UTILITY. AND WE'LL GO THROUGH THAT 700 MILLION. AND A GOOD PORTION OF THAT IS RELATED TO WASTEWATER PLANTS THAT ARE. WE'RE PLANNING FOR OVER THIS NEXT YEAR, AS WELL AS ADDITIONAL WATER FROM THE CARRIZO AQUIFER AND THE PIPELINE THAT WE'RE BUILDING FROM CIRCLEVILLE TO GEORGETOWN. SO BASE BUDGETS. SO WE HAVE EXISTING KIND OF BASE BASED ON THE WAY OUR OPERATING BUDGETS ARE BUILT OR ALL THE BUDGETS BUILT, WE KIND OF LOOK AT OUR OPERATING BUDGET. WE HAVE THE EXISTING BUDGET, A BASE BUDGET, WHICH IS KIND OF ALL THE EXISTING STAFFING PROGRAMS, THINGS OF THAT NATURE INCLUDES JUST NORMAL INCREASES TO CONTRACTS OR INFLATIONARY INCREASES, FULL YEAR SALARIES THAT MAYBE HAVE BEEN ADDED PARTIALLY IN THE MID YEAR. YOU CAN SEE HERE THE CAPITAL IMPROVEMENTS AND DEBT SERVICE THAT WE HAVE AS A PART OF THE BUILDING BLOCKS OF OUR BASE BUDGET. ALSO, I THINK IT'S IMPORTANT TO NOTE THAT IN ORDER FOR US TO BRING FORWARD A BALANCED BUDGET PLAN AND ALSO BE ABLE TO FUND SOME OF THE KEY NECESSARY WHAT WE BELIEVE ARE NECESSARY ENHANCEMENTS TO THE BUDGET, WE HAD TO CUT THE BASE BUDGET, AND SO WE CUT THE BASE BUDGET FOR NEXT YEAR BY $2 MILLION IN THE GENERAL FUND. AND WE WANTED THIS SLIDE TO KIND OF REFLECT THE DIFFERENT TYPE OF CATEGORIES THAT YOU SAW, CUTS FROM PROFESSIONAL FEES, CONTRACTUAL SERVICES, TRAINING, EDUCATIONAL SUPPLIES, GENERAL SUPPLIES, MAINTENANCE EXPENSE. 
          WE BASICALLY LOOKED AT A THREE YEAR HISTORY OF OUR BUDGET AND LOOKED AT YEAR END PROJECTIONS TO, TO ACTUALLY HOW THEY HOW WE ENDED THE YEAR AND HOW MUCH SAVINGS OCCURRED TO WHAT WE WERE PROJECTING IN THE YEAR AND EXPENSE AND HOW MUCH ACTUALLY OCCURRED. AND THERE IS A GAP. 
          THERE'S ACTUALLY THE ACTUAL YEAR END EXPENSES TEND TO BE LOWER THAN OUR YEAR END PROJECTIONS. AND SO WE ACTUALLY TOOK THAT TREND MARK, AND ASKED DEPARTMENTS TO CUT ACCORDINGLY WITHIN BUDGETS. SO, SO I THINK WHAT THE IMPORTANT MESSAGE TO SHARE WITH YOU ALL THAT THIS, THAT WE WE'VE SCRUBBED BASE BUDGETS SIGNIFICANTLY, CUT TWO MORE DOLLARS OUT OF BASE BUDGET IN ORDER TO BE ABLE TO, TO MEET, AGAIN, THE NECESSARY PRIORITIES THAT WE FEEL LIKE ARE, ARE IN THE PROPOSED BUDGET FOR THIS YEAR AND SPECIFICALLY IN THE GENERAL FUND. ALSO, ANOTHER CHANGE THAT YOU'LL SEE AND YOU'LL SEE THIS SHOW UP AS WE LOOK AT PERCENTAGE INCREASES IN THE BUDGET IN DIFFERENT DEPARTMENTS IS DURING Y'ALL'S COUNCIL GOAL SETTING PROCESS. 
          YOU TALKED ABOUT REALLY MAKING SURE THAT THE DEPARTMENTS, ALL THE EXPENSES OF THE DEPARTMENT KIND OF WERE IN THAT COST CENTER BUDGET SO THAT YOU COULD SEE KIND OF THE FULL COST ASSOCIATED WITH THAT. ONE OF THE MAIN COMPONENTS THAT WASN'T IN EACH DEPARTMENTAL BUDGET, BUT IN THE GENERAL FUND OVERALL WAS OUR, OUR BASICALLY OUR TRANSFER THAT WE MAKE FROM THE 
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GENERAL FUND TO JOINT SERVICES. AND THAT TRANSFER THAT WE MAKE IS TO PAY FOR SHARED SERVICES LIKE HR AND FINANCE AND THINGS OF THAT NATURE. SO THAT NUMBER, THAT NUMBER IS $8.3 MILLION. 
          AND OF THAT, IT'S SPREAD OUT. THESE THIS IS HOW IT'S SPREAD OUT AND ASSIGNED BETWEEN THE DIFFERENT DEPARTMENTS. SO NOT PICKING ON POLICE, BUT JUST PICKING ON POLICE OPERATIONS AND EXAMPLE, THEIR PORTION OF THE JOINT SERVICES THEY PAY FOR IS $1.35 MILLION. AND SO WE ACTUALLY HAVE THAT REFLECTED NOW IN THEIR COST CENTER VERSUS REFLECTED IN GENERAL GOVERNMENT CONTRACTS. SO IF YOU LOOK AT THIS FUND SCHEDULE FOR THE GENERAL FUND AND LOOK AT LINE ITEM GENERAL GOVERNMENT CONTRACTS, YOU'LL SEE THAT THERE'S A HUGE DECLINE FROM 2026 TO 2027 IN GENERAL GOVERNMENT CONTRACTS. SO THE REASON FOR THAT IS BECAUSE THOSE THOSE JOINT SERVICES EXPENSES AREN'T HELD IN GENERAL GOVERNMENT CONTRACTS ANYMORE. 
          NOW, THERE HAVE BEEN PUSHED OUT TO ALL THE DIFFERENT DEPARTMENTS. SO YOU'LL SEE THAT SOME OF THE PERCENTAGE INCREASES FROM ONE YEAR TO THE NEXT ARE LARGER THAN WHAT WE'D NORMALLY SEE. BUT THAT'S BECAUSE OF THIS, THIS TREATMENT OF HOW WE'RE WHERE WE'RE SHOWING THE COST OF THE GENERAL FUND OF THE JOINT SERVICE GENERAL FUND EXPENSE. AND SO HOPEFULLY THAT MAKES SENSE. AND WE'LL KIND OF HIGHLIGHT THAT AS WE GO THROUGH THE BUDGET PROCESS. WE ALSO RECOGNIZE THAT ONE OF ONE OF THE LARGE INCREASES THAT WE'VE SEEN AND AND I DON'T THINK WE'RE ALONE, I THINK THIS IS A COMMON THEME IS, IS JUST WE ALSO SPREAD THE TECHNOLOGY ALLOCATION BETWEEN ALL THE DIFFERENT DEPARTMENTS. SO THE IT DEPARTMENT IS FUNDED BY ALL THE DIFFERENT FUNDS AND A PORTION OF THE POLICE DEPARTMENT BUDGET, A PORTION OF THE FIRE DEPARTMENT BUDGET PORTION OF THE LIBRARY BUDGET IS GOES INTO THE TECHNOLOGY FUND. AND SO THAT SPREAD. AND WE'VE ALSO SEEN AN INCREASE IN TECHNOLOGY, INCREASE IN SUBSCRIPTION SUBSCRIPTION INCREASES ACROSS THE BOARD IN, IN TECHNOLOGY COSTS AS WELL. SO YOU'LL SEE THAT AS AN IMPACT IN THE OVERALL BUDGET. HERE IS OUR NEW PROGRAMING AND SPECIFICALLY OUR POSITIONS PROPOSED FOR THAT WE CURRENTLY ARE PROPOSING FOR NEXT YEAR'S BUDGET. YOU CAN SEE 11 IN ELECTRIC UTILITY. AND AGAIN WE'RE GOING TO GO THROUGH THESE POSITIONS. 14 IN THE GENERAL FUND. OF THOSE 14, TEN OF THOSE ARE IN PUBLIC SAFETY, SIX IN FIRE AND FOUR IN POLICE. 
          WE HAVE OUR IT DEPARTMENT OR IT FUND AT TWO POSITIONS JOINT SERVICES AT SEVEN POSITIONS, MOSTLY FOCUSED IN THE FINANCE AND PURCHASING AREA, STORMWATER SERVICES AT FOUR, WHICH IS ADDITIONAL WORK CREWS, PART TIME EMPLOYEE AND TOURISM, AND ONE EMPLOYEE IN WATER SERVICES. 
          AND THEN HERE'S THE INFRASTRUCTURE. WE HAD A PREVIOUS SLIDE THAT KIND OF SHOWED YOU HOW THAT WAS DIVIDED UP, BUT YOU CAN SEE HERE $876 MILLION OF INFRASTRUCTURE INVESTMENT, CAPITAL IMPROVEMENTS. AND YOU CAN SEE HOW THOSE ARE DIVIDED BETWEEN AS WELL AS JUST HOW WE'VE MODELED UTILITY RATES TO HELP PAY FOR THESE CAPITAL COSTS, AS WELL AS INCREASING INCREASES IN REVENUE. AND THEN OBVIOUSLY, PROPERTY TAX, GEO AND CO BONDS ON THE GENERAL FUND SIDE. AND THAT IS ALSO INCLUDED IN OUR FIVE YEAR MODELING TO. SO THE BUDGET WORKBOOK, I MENTIONED THE CLEAR GOV DIGITAL WORKBOOK. SO YOU HAVE ACCESS TO THAT. IT HAS THE TRANSMITTAL LETTER, WHICH IS REALLY KIND OF A HIGHLIGHT HIGHLIGHTING THIS YEAR'S BUDGET AS WELL AS, AS WELL AS THE DIFFERENT THINGS THAT ARE HAPPENING WITHIN OUR COMMUNITY. WE HAVE OUR FUND SCHEDULES. YOU CAN SEE HOW THEY'RE DIVIDED BETWEEN REVENUES FOR 2026 AND 27, AND THEN EXPENSES FOR 26 AND 27, AS WELL AS MORE DETAIL AROUND SERVICE LEVEL REQUESTS AND AND THEN FUND BALANCE RESERVES. THEN WE ALSO HAVE DEPARTMENT PERSONNEL SUMMARY AND CHARGES AND LINE ITEM DETAIL, CAPITAL IMPROVEMENTS, DEBT, AND THEN A REFERENCE SECTION. SO WE'LL START WALKING THROUGH THE MAJOR VARIANCES BETWEEN OUR PROJECTIONS FOR 20. AND THEN TO SHOW YOU HOW WE'RE FINISHING PROJECTING TO FINISH 26 AS WELL AS PROPOSALS FOR 2027 INCREASES DUE TO GROWTH NEW REQUEST AS WELL AS OTHER VARIANCES. BEFORE WE DO THAT, JUST A REFRESHER FOR THOSE FOR THOSE NON-CITY EMPLOYEES THAT ARE IN THE AUDIENCE AS JUST A REFRESHER ON HOW THIS BUDGET IS PUT TOGETHER. SO WE HAVE A FUND SCHEDULE FUND REPORTING STRUCTURE. EACH FUND IS SELF-BALANCING REPRESENTS BASICALLY A SET OF ACCOUNTS AND INCLUDE LIABILITIES, ASSETS, REVENUE AND EXPENSES. AND EACH ONE OF THOSE FUNDS. AND THEN WE HAVE A FISCAL AND BUDGETARY POLICY THAT OUTLINES THE REQUIREMENTS FOR EACH ONE OF THOSE FUNDS, RESERVE REQUIREMENTS AND OTHER WAYS IN WHICH WE MANAGE OUR FINANCES. 
          THE GENERAL FUND IS PRIMARY OPERATING FUND OF THE CITY. IT'S WHERE YOU THINK OF MOST TRADITIONAL SERVICES LIKE PUBLIC SAFETY, STREET MAINTENANCE, PARKS, LIBRARY, 
          [00:25:02]
THINGS OF THAT NATURE. THEY'RE PRIMARILY FUNDED THROUGH SALES TAX, PROPERTY TAXES, AND NOW RETURN ON INVESTMENT OR PAYMENT IN LIEU OF TAXES. AND WE HAVE A GENERAL DEBT SERVICE. THAT'S OUR PROPERTY TAX SUPPORTED DEBT. ACTUALLY, THE MAJORITY OF OUR THE LARGE MAJORITY OF OUR PROPERTY TAXES GOES INTO THE GENERAL DEBT SERVICE FUND, AND IS THE INTEREST AND SINKING FUND PAYING, PAYING FOR OUR DEBT THAT WE HAVE TO BE ABLE TO FUND CAPITAL PROJECTS. THEN YOU HAVE ENTERPRISE FUNDS. THESE ARE OPERATE MORE LIKE TRADITIONAL BUSINESSES HAVE RATES AND FEES THAT ARE SET TO RECOVER THOSE COSTS. SO THAT INCLUDES THE ELECTRIC UTILITY, WATER UTILITY WATER FUND, SOLID WASTE FUND, STORMWATER AIRPORT, THE INTERNAL SERVICE FUNDS, AS I'M MENTIONING, JOINT SERVICES, THE LARGEST ONE, BUT WE ALSO HAVE OTHER INTERNAL FUNDS LIKE FLEET FACILITIES, INFORMATION TECHNOLOGY AND SELF-INSURANCE FUND. AND THEN WE HAVE SPECIAL REVENUE FUNDS THAT HAVE SPECIFIC REQUIREMENTS AROUND THEM AND LIMITATIONS ON HOW THOSE CAN BE SPENT. SO THE TWO MOST COMMON ONES, TOURISM FUND FUNDED BY THE HOTEL OCCUPANCY TAX, WHICH THERE ARE CERTAIN GUIDELINES ABOUT HOW YOU CAN USE THOSE FUNDS. SAME WITH THE STREET MAINTENANCE FUND. WE HAVE THAT OUR STREET MAINTENANCE SALES TAX IS AUTHORIZED EVERY FOUR YEARS, AND IT'S DEDICATED JUST FOR STREET MAINTENANCE. SO I'M GOING TO STOP TO TAKE A SMALL DRINK OF WATER AND ANSWER QUESTIONS, OR STOP FOR A SECOND TO SEE IF THERE'S ANY QUESTIONS OR DISCUSSION BEFORE WE START GOING INTO THE BUDGET. ANY QUESTIONS BEFORE WE START DIVING IN? OKAY. LET'S ROLL. WELL, I SHOULD HAVE DONE THIS ON THE VERY BEGINNING, BUT I'LL DO IT NOW, WHICH IS JUST TO GIVE A BIG THANK YOU TO OUR TO OUR OVERALL TEAM FOR PUTTING THIS BUDGET TOGETHER. WE OBVIOUSLY HAVE OUR FINANCE AND BUDGET TEAM, BUT BUT IT'S VERY APPROPRIATE THAT WE HAVE SO MANY OF OUR OTHER CITY STAFF HERE, BECAUSE THEY'RE THE REAL FOLKS THAT PUT THE WHOLE BUDGET TOGETHER. AND, AND, AND I CAN TELL YOU THAT FROM MY STANDPOINT, I'VE WORKED IN GEORGETOWN 11 YEARS NOW AND COULDN'T BE MORE PROUD OF THE WAY IN WHICH WE MANAGE OUR FINANCES AND REALLY KNOW OUR NUMBERS IN ORDER TO BE ABLE TO, TO USE DOLLARS THAT ARE PROVIDED WISELY. AND, AND I BELIEVE THAT OUR TEAM HAD A REALLY HARD JOB THIS YEAR BECAUSE WE HAD THEY'VE DONE SUCH A GOOD JOB AND MADE REALLY COMPELLING REQUESTS FOR DIFFERENT KIND OF SERVICE LEVEL NEEDS ACROSS THE ENTIRE CITY. AND THE REALITY IS THERE'S ALWAYS LIMITED FUNDS AND LIMITED AMOUNT THAT WE CAN FUND ON AN ANNUAL BASIS. AND SO THE DECISION MAKING WAS EVEN HARDER THIS YEAR. BUT, BUT I THINK IT'S JUST IMPORTANT TO RECOGNIZE THAT THIS IS IT'S NOT JUST CITY MANAGER STAFF, OBVIOUSLY, NOT JUST THE FINANCE AND BUDGET STAFF THAT DO A GOOD JOB OF PUTTING, PUTTING THE WHOLE PLAN TOGETHER. BUT IT'S OUR ENTIRE CITY TEAM AND STAFF, KIND OF HUNDREDS OF STAFF THAT ARE PUTTING THIS BUDGET TOGETHER TO BE THOUGHTFUL FOR YOU ALL TO CONSIDER AND BE ABLE TO SHARE WITH THE PUBLIC. WITH THAT, LET ME GO AHEAD AND HAND IT OFF. I BELIEVE WE'RE GOING TO HAND IT OFF TO NATHAN TO START GENERAL FUND REVENUES. IS THAT CORRECT? ALL RIGHT. GOOD DEAL. THAT'S IT. FRESH WATER. THANK YOU. ALL RIGHT. GOOD AFTERNOON, MAYOR AND COUNCIL. NATHAN PARRIS, ASSISTANT CHIEF FINANCIAL OFFICER I'M GOING TO TALK THROUGH THE HIGH LEVEL THEMES OF THE GENERAL FUND REVENUES. DAVID, OR CITY MANAGER HAS ALREADY SPOKEN TO A LOT OF THESE. I WANT TO PROVIDE A LITTLE BIT MORE CONTEXT AND DETAIL OVER THE NEXT FEW SLIDES. EXCUSE ME. AND AS WE GO THROUGH THESE THROUGH THESE SLIDES, PLEASE FEEL FREE TO ASK ANY QUESTIONS THAT YOU MAY HAVE. WE'RE HERE TO ANSWER THOSE. AND IF WE DON'T KNOW, WE WILL WE WILL GET BACK TO YOU WITH THOSE QUESTIONS OR THOSE ANSWERS. AND THEN WE HAVE A WHOLE CAST OF SUPPORTING CHARACTERS IN HERE TO HELP US OUT FOR KEY THEMES IN THE GENERAL FUND. AGAIN, MANY OF THESE WE'VE HIGHLIGHTED IN THE INTRO, BUT OUR SLOWER GROWTH IN OUR MAJOR REVENUES. SO DAVID MENTIONED CITY, CITY PROPERTY TAX AND SALES TAX. 
          WE'LL GET GET INTO A LITTLE BIT MORE DETAIL IN A COUPLE OF SLIDES. WE TALKED THROUGH PILOT. 
          SO THAT HAS BEEN A GROWING COMPONENT OF OUR REVENUE STREAMS IN THE GENERAL FUND. 
          AND WE HAVE SOME RISK MITIGATION THAT WE'VE PUT INTO THOSE NUMBERS TO ENSURE THAT WE'RE NOT OVER RELIANT ON OUR PILOT NUMBERS. AND WHILE OUR PROPERTY TAX GROWTH STILL REMAINS STRONG, IT HASN'T IS NOT ON PACE AS WHAT WE'VE SEEN IN PREVIOUS FISCAL YEARS. AND JUST TO GIVE YOU AN IDEA OF WHAT THAT LOOKS LIKE, SO BETWEEN THE YEARS 2021 AND 2024, WE SAW AN AVERAGE INCREASE IN ASSESSED VALUE OF ABOUT 14%. OVER THE LAST TWO YEARS. WE'VE SEEN THAT DECREASE, SO MUCH SO THAT I WOULDN'T HAVE BLINKED TWICE IF WE WERE THINKING OF AN 8% INCREASE IN OUR AV MODELING YEAR OVER YEAR. SO WHEN WE LOOK AT OUR OUTLOOK FOR THE GENERAL FUND FOR THE NEXT FIVE YEARS AND OUR DEBT OBLIGATIONS, I THINK IT'S IN OUR BEST INTEREST 
          [00:30:02]
TO BE A LITTLE BIT MORE CONSERVATIVE ON ON THOSE ASSUMPTIONS. SO WHAT WE'VE DONE IN THE GENERAL FUND THIS YEAR IS PULLED BACK ON THOSE ASSUMPTIONS, ASSUMING MORE AROUND A 4 TO 5% PROPERTY TAX INCREASE ON OUR ASSESSED VALUE. AND THAT'S ALIGNING WITH WITH WHAT WE'RE SEEING FROM OUR VALUES FROM THE APPRAISAL DISTRICT, WE MENTIONED THE RISING COSTS OF PUBLIC SAFETY TO MAINTAIN CURRENT SERVICE LEVEL REQUESTS. SO ALONG WITH THE MEET AND CONFER CONTRACT, WE'RE HIRING OR PROPOSING TO HIRE TEN NEW PUBLIC SAFETY EMPLOYEES, ALIGNING THAT WITH ON THE FIRE SIDE WITH THE OPENING OF FIRE STATION EIGHT AND OUR THREE YEAR MODELING OR STAFFING PLAN. SORRY, ONE OF THE FIRST THINGS WE DO WHEN WE START TO PREPARE OUR BUDGET IS TO MAKE SURE THIS GOES TO PART OF ONE OF OUR REASONING BEHIND HAVING STRONG FINANCIAL MANAGEMENT IS MAKING SURE THAT WE HAVE FULLY FUNDED RESERVES. 
          SO ONE OF THE FIRST THINGS THAT WE DO IS MAKE SURE THAT WE ARE HITTING OUR 90 DAY OPERATING CONTINGENCY. SO WE DO HAVE THAT BAKED INTO THIS YEAR'S BUDGET, AND THEN WE HAVE REPLENISHED OUR REVENUE STABILITY RESERVE TO THE 8%. SO THAT RESERVE, THAT TOTAL AMOUNT TO GET IT UP TO 8% IS ABOUT $1.7 MILLION. WE DO HAVE THE ABILITY TO GO UP TO 10% PER FISCAL AND BUDGETARY POLICY, BUT HISTORICALLY WE HAVE FUNDED THIS AT 8%. SO YOU SEE THAT AS PART OF THIS BUDGET. 
          IN ADDITION TO THAT, WE HAVE A BELOW LINE RESERVE FOR A BENEFIT PAYOUT RESERVE. THIS IS 15% OF ACCRUED BENEFIT LIABILITY FOR ELIGIBLE EMPLOYEES. SO IF SOMEONE WERE TO RETIRE MID-YEAR, WE TRY TO MITIGATE SOME OF THAT COST BY HOLDING RESERVE BELOW LINE TO ACCOUNT FOR IT. AND THAT THAT IS 15% OF THE GENERAL FUND AND OR JOINT SERVICE OR, AND JOINT SERVICE FUND. ALL RIGHT. WE'RE GOING TO LOOK INTO THESE, THE REVENUES JUST A LITTLE BIT CLOSER. SO LET'S START WITH PROPERTY TAX. WE THE CITY CURRENTLY HAS A GREATER THAN 5000 OR 5% HOMESTEAD EXEMPTION. THAT WAS PART OF THE JUNE 2022 BUDGET PROCESS. AND MR. LANGFORD FROM THE APPRAISAL DISTRICT CAME A MONTH AGO AND TALKED THROUGH WHAT'S GOING ON AS FAR AS ASSESSED VALUE. THIS IS FROM FROM THEIR PRESENTATION. SO WE'RE SEEING A DECLINE IN THE AVERAGE HOMESTEAD TAXABLE VALUE. SO LAST YEAR THAT NUMBER WAS AROUND 397,000. THIS YEAR IT'S ADJUSTED TO 390,000. SO TYPICALLY AT THIS TIME WE'RE HAVING THIS PRESENTATION AT THE END OF JULY, AT WHICH POINT WE WOULD HAVE AT LEAST 3 TO 4 MORE DATA POINTS FROM THE FROM THE APPRAISAL DISTRICT. SO WE WOULD HAVE A BETTER IDEA ABOUT WHAT OUR PROPERTY TAX RATE WILL BE. 
          WHERE WE'RE AT RIGHT NOW IS THEY'RE GOING THROUGH THE PROCESS OF THE VALUES THAT ARE UNDER PROTEST BEING SETTLED. SO AS THEY SEND US WEEKLY REPORTS, WE GET A BETTER IDEA OF WHAT THAT REVENUE STREAM WILL LOOK LIKE. SO THIS BEING JUNE, I THINK WE COULD THEORETICALLY GET YOU INTO THE BALLPARK, MAYBE INTO OUR SECTION. DEFINITELY NOT IN OUR ROW AND DEFINITELY NOT IN OUR SEAT. SO WE'RE STILL MONITORING WHERE OUR TAX RATE WILL LAND FOR FISCAL YEAR 2027. THE CHARTS ON THE RIGHT GIVE US A GOOD IDEA OF OF THE ACTIVITY. SO THE TOP ONE IS GOING TO BE OUR TEN OR ACTUALLY OUR 20 YEAR HISTORY OF ASSESSED VALUE. AND THEN THE BOTTOM ONE, WHICH I THINK IS PARTICULARLY INTERESTING, IS THE NEW IMPROVEMENTS AND PERSONAL PROPERTY. YOU CAN SEE THAT DECLINE OVER THE LAST THREE YEARS. AND ONE OF THE REASONS THAT THAT IS IMPORTANT FOR US, THAT HAS BEEN A BIG REVENUE DRIVER ON OUR PROPERTY TAX SIDE. WE STILL DO HAVE STRONG GROWTH, BUT WE DO SEE THAT NUMBER DECLINING OVER THE LAST THREE YEARS. SO RIGHT NOW, WHERE WE ARE WITH PROPERTY TAXES, AGAIN, WE'LL CALCULATE THIS ONCE WE RECEIVE THE CERTIFIED VALUES ON OR BEFORE JULY 25TH. FOR 2026, WE'RE PROJECTING TO END THE YEAR AT BUDGET IN THE GENERAL FUND, WHICH IS 23.4 MILLION. AND FOR 2027, WE'RE FORECASTING TO GO UP IN THE GENERAL FUND TO 24.5 MILLION. SOME OF THE FACTORS THAT PLAY INTO THAT FORECAST. THE TOURS WITH TOURS ARE A GREAT THING TO HAVE TO GENERATE ACTIVITY IN A SPECIFIC AREA. BUT DURING THE ESTABLISHMENT, WHILE THE TOURS ESTABLISH THOSE PROPERTY TAX DOLLARS ABOVE AND BEYOND THE BASE VALUE, STAY IN THE TOURS. SO OUR TOURS CONTINUE TO GROW. SO THAT'S REFLECTED IN SOME OF THE REVENUES THAT WE'RE SEEING IN THE GENERAL FUND. AND THEN I MENTIONED THE $550 MILLION IN NEW IMPROVEMENTS. THAT'S A BIG PART OF OUR CALCULATION. AGAIN, THOSE NUMBERS ARE DECLINING OR HAVE BEEN DECLINING OVER THE LAST THREE YEARS AT FRANCHISE FEES IN 2026, WE'RE ANTICIPATING THESE TO COME IN LOWER THAN THAN OUR BUDGET. WE DID ADJUST MID-YEAR. IT'S PREDOMINANTLY IS RELATED TO THE VLCD II CUSTOMERS IN ELECTRIC. SO WE HAVE ADJUSTED THE REVENUE RECEIVED FROM THEM IN 2026 AND 2027. WHAT WE HAVE DONE IS REFLECTED THE FRANCHISE FEE RATES ACCORDINGLY. SO 
          [00:35:01]
CONSERVATIVELY FORECASTING THESE NEW CUSTOMERS COMING ONLINE, SPECIFICALLY THE VERY LARGE LOAD CUSTOMERS ANTICIPATING OUR ORGANIC GROWTH FROM THE UTILITY STANDPOINT AND THEN INCORPORATING THE WATER, WASTEWATER, STORMWATER AND SOLID WASTE RATE INCREASES. SO THERE IS AN INCREMENTAL INCREASE IN PILOT AND FRANCHISE FEES THAT WE'LL TALK ABOUT THAT WILL COME FROM THOSE RATE INCREASES FOR THOSE UTILITIES. INTEREST EARNINGS FOR FISCAL YEAR 2026 1.4 MILLION, AND THEN DECREASING IN 2027 TO JUST UNDER 1.4 MILLION FOR 1 MILLION. 
          SORRY. THIS IS ONE THING THAT WE ARE MINDFUL OF. SO AS RATE CHANGES HAPPEN FROM A FEDERAL LEVEL, WE NEED TO BE MINDFUL OF THAT ON AS FAR AS OUR INTEREST EARNINGS GO. SO WE'RE ALIGNING WITH THAT AND WE WILL MONITOR THAT AS WE GO INTO FISCAL YEAR 2027 AND SPECIFICALLY OVER THE NEXT FEW MONTHS, TO SEE IF WE NEED TO ADJUST SOME OF OUR INTEREST EARNINGS. NEXT SLIDE IS GOING TO COVER SALES TAX. AND TALKING ABOUT ONE, WHAT ARE WE SEEING SALES TAX YEAR TO YEAR IN THE GENERAL FUND. AND THEN TWO TAKING A DIFFERENT LENS AND GOING A LITTLE BIT TO LOOK AT EACH SECTOR AND HOW THOSE TRENDS ARE PLAYING OUT FOR 2026, WE'RE ESTIMATING A 2.6 INCREASE OVER FISCAL YEAR 2025 ACTUALS. WE HAVE BEEN WE HAVE BEEN ON THE GOOD END OF SOME NEW BUSINESSES OR I'M SORRY, SOME PAYMENTS THAT HAVE COME ONLINE IN 2026 FROM BUSINESSES THAT ARE ALREADY ESTABLISHED. NOW, WHAT WE'RE TRYING TO FIGURE OUT FROM OUR END ARE THOSE SOMETHING THAT WE CAN RELY ON MOVING FORWARD, OR ARE THESE MORE OF ONE TIME IN NATURE? SO WHEN I SAY ONE TIME IN NATURE, I THINK OF THINGS LIKE AN EQUIPMENT UPGRADE FOR A LARGE BUSINESS, THAT'S GOING TO BE A SIGNIFICANT SALES TAX RETURN TO US. HOWEVER, IT MAY ONLY HAPPEN ONCE EVERY THREE YEARS, ONCE EVERY QUARTER. SO WE NEED TO MAKE SURE WE UNDERSTAND THAT. SO RIGHT NOW WE'RE WE'RE FORECASTING THAT TO BE A 2.6 INCREASE OVER 2025. 
          AND THEN 2027, WE'RE INCREASING OR FORECASTING OUR SALES TAX BUDGET TO BE 2.1% OVER OUR PROJECTIONS. PART OF THAT IS WHAT I JUST MENTIONED IN TRYING TO UNDERSTAND SOME OF THE ACTIVITY OF BUSINESSES THAT WE SEE IN THEIR SALES TAX THAT THEY'RE PAYING INTO THE CITY. 
          ANOTHER PART OF THAT IS WE DO GET A SALES TAX FROM OUR ELECTRIC UTILITY. SO SOME OF THESE CUSTOMERS THAT ARE PAYING A MINIMUM DEMAND, WE CAN RIGHTFULLY ASSUME THAT AS LONG AS THEY'RE PAYING THAT, THAT WE WILL GET THOSE SALES TAX. SO WE HAVE DISCOUNTED THAT AND FACTORED IT INTO OUR PROJECTIONS HERE FOR SALES TAX. SO JUST A SLIGHT INCREASE OF 2.1% OVER LAST CURRENT YEAR PROJECTIONS. AND I JUST WANT TO MENTION THIS I'LL MENTION A COUPLE OF TIMES IN THIS PRESENTATION. BUT GOING BACK TO THE REVENUE STABILITY RESERVE. 
          SO SALES TAX PAYMENT IN LIEU OF TAXES OR PILOT AND FRANCHISE FEES VERY VOLATILE. SO WE WANT TO MAKE SURE THAT WE HAVE THAT RESERVE IN PLACE. SO AGAIN 8% IN THE GENERAL FUND. THAT'S A $1.4 MILLION INCREASE TO THAT RESERVE. THIS NEXT SLIDE AGAIN IS SALES TAX. BUT IT'S IT'S VERY TELLING OF WHAT WE'RE SEEING WHEN WE LOOK AT OUR DATA. AND WE'RE SEEING THE TREND OF SALES TAX. SO THIS IS DONE BY OUR MAJOR ROLL UP SECTORS. SO WE CAN LOOK AT THIS IN THREE LEVELS. THIS IS THE HIGHEST LEVEL WHICH IS THE ROLL UP SECTOR. THEN YOU SEE SUBSECTOR. 
          AND THEN WE CAN ACTUALLY GET INTO THE BUSINESS. SO RETAIL IS BY FAR OUR LARGEST DRIVER FOR SALES TAX IN OUR OVERALL SALES TAX. AND THE TREND FOR FOR RETAIL HAS CONTINUED TO BE EIGHT 9% OVER THE LAST THREE YEARS, WHICH IS, WHICH IS GREAT. HOWEVER, WHEN YOU LOOK AT THE BOTTOM OF THIS CHART, YOU'LL SEE ALL OF THE OTHER ROLLUP SECTORS HAVE STAYED FAIRLY FLAT. 
          EVEN A LITTLE BIT OF DECLINE IN SOME OF THESE. SO THAT GOES INTO OUR OVERALL EQUATION AS WE'RE FORECASTING SALES TAXES TO LOOK AT HOW OUR SECTORS ARE TRENDING BACK IN 2020 THROUGH 2021 AND 2022. YOU CAN SEE ALL OF THEM WERE TRENDING OR FOR THE MOST PART, IN AN UPWARD DIRECTION. THAT'S NOT THE CASE ANYMORE. SO WE AGAIN, STRONG SALES TAX BASE, BUT WE'RE IN A NEW TERRITORY, A NEW REALITY AS WE SEE GROWTH YEAR OVER YEAR. ANOTHER COMPONENT OF GENERAL FUND REVENUE IS TRANSFER ENDS. SO THIS IS GOING TO BE FOR VARIOUS OTHER FUNDS AND FOR FOR SPECIFIC REASONS THAT WE'VE IDENTIFIED. SO IN 2027, WE'RE CONTINUING THE EFFORT THAT WE'VE HAD IN PREVIOUS FISCAL YEARS OF SENDING MONEY FROM THE TOURISM FUND TO SUPPORT ARTS AND CULTURAL PROGRAMING TO THE GENERAL FUND, THE COUNCIL, SRF IN 2027 IS PAYING FOR THE GENERAL FUND PORTION OF THE LEASE. WE HAVE BEEN DOING THIS PRACTICE FOR THE LAST THREE YEARS SINCE WE'VE HAD THE LEASE IN PLACE AND THEN IN FIRE BILLING, SO IT'S VERY IMPORTANT THAT THESE HAVE TO BE ELIGIBLE EXPENSES. WE HAVE IDENTIFIED ELIGIBLE EXPENSES TO HELP OFFSET SOME OF THE COSTS FOR THE FIRE AND LIFE SAFETY SPECIALISTS, AS WELL AS A FIRE INSPECTOR GOING BACK TO PILOT. SO IN 2026, LIKE FRANCHISE FEES, WE SEE A DECREASE PREDOMINANTLY 
          [00:40:02]
RELATED TO WHAT WE'RE SEEING IN THE ELECTRIC UTILITY. IT'S AN OVERALL 3% DECREASE. AND THEN AS I MENTIONED IN 2027, WE'RE ASSUMING ORGANIC GROWTH. CONSERVATIVE MODELING FOR OUR PILOT FOR FISCAL YEAR 2027 AND ALIGNING WITH THE RAMP UP SCHEDULES OF THE KNOWN VLCAD CUSTOMERS. I THINK THIS SLIDE IS IMPORTANT TO REPRESENT HOW, HOW PILOT HAS GROWN AS A REVENUE IN THE GENERAL FUND. SO YOU'LL SEE THE TOP LINE IS OUR GENERAL FUND REVENUE. THAT IS WITHOUT PILOT. SO GENERALLY OUR REVENUES ARE GOING UP YEAR OVER YEAR, NOT A SIGNIFICANT AMOUNT. 
          BUT THEY ARE GOING UP. AND I'M LOOKING PARTICULARLY AT 25 THROUGH 27. BUT YOU CAN SEE THROUGH 24 GOING ON THAT OUR PILOT HAS BECOME A LARGER COMPONENT OF GENERAL FUND REVENUE. SO IN FISCAL YEAR 2027, WE'RE PROPOSING THE TOTAL PILOT FOR ALL UTILITIES RETURNED TO THE GENERAL FUND IS JUST OVER $20 MILLION. AND THAT EQUATES TO ABOUT 17% OF TOTAL GENERAL FUND REVENUE. LAST COUPLE SLIDES I HAVE ARE OVER NON-DEPARTMENTAL REVENUE AND EXPENSES. SO OUR REVENUES FOR FISCAL YEAR 2026 ARE PROJECTED TO BE 1.3% OVER BUDGET. WE'VE TALKED ABOUT A COUPLE OF THESE FRANCHISE FEES, SALES TAX WE TALK ABOUT. I'VE TALKED ABOUT THE WATER WASTEWATER RATE IMPACTS. AND THEN I DID WANT TO MENTION WE DO HAVE A ONE TIME REVENUE OF GRANT THAT WE RECEIVED OF $694,000. GRANT REVENUE TYPICALLY IS NOT PLANNED. SO WE WE REALIZE THAT IN FISCAL YEAR 2026, AND THAT'S FROM THE FLOOD EVENT FROM JULY 2025. OVERALL, FROM COMPARING TO FISCAL YEAR 2025 ACTUALS, THE INCREASE IN PROJECTED BUDGET OR PROJECTED REVENUE FOR FISCAL YEAR 2026 IS 5.7% OVER 2025 ON THE EXPENSES AND NON-DEPARTMENTAL. SO THIS IS THE OTHER SIDE OF THE COIN. SO THE TRANSFER OUTS TO OTHER FUNDS IN 2026, WE DO HAVE A TRANSFER OUT TO COUNCIL DISCRETIONARY FUND. WE DID ORIGINALLY PLAN ON DOING $1.5 MILLION IN THIS BUDGET. YOU WILL SEE ABOUT 500 000 A LITTLE NORTH OF $500,000 TRANSFERRED OVER TO THE COUNCIL SRF IN 2026, WITH NO CURRENT PLAN TO TRANSFER INTO 2027. WE USUALLY WAIT TILL WE GET OUR FINAL NUMBERS FROM OUR AUDIT BEFORE WE TRUE UP THAT NUMBER AND COME BACK TO COUNCIL AS PART OF THE MID-YEAR AMENDMENT TO ADJUST A TRANSFER FOR 2027. IN 2027, NON-DEPARTMENTAL REVENUES, THEY'RE UP 6% COMPARED TO THE 2026 BUDGET. LARGE PART OF THAT IS GOING TO BE DRIVEN BY OUR PILOT INCREASE. SO AGAIN, THAT'S NATIVE LOAD RATE INCREASES AS WELL AS THE RAMP UP SCHEDULES OF OUR VERY LARGE COMMERCIAL AND INDUSTRIAL CUSTOMERS. AND THEN WE SEE A SLIGHT INCREASE IN OUR GENERAL FUND ALLOCATION. SO DAVID MENTIONED THIS EARLIER. THE INCREASE ON THE JUST LIKE THE JOINT SERVICE FUND, IT'S THE GENERAL FUNDS PORTIONS FOR SUPPORT OF OTHER AREAS OF THE ORGANIZATION. SO THAT THAT REVENUE IS UP A LITTLE BIT IN FISCAL YEAR 2027 ON THE EXPENSE, THERE IS A DECREASE, AND THAT IS PREDOMINANTLY FROM WHAT I HAD JUST MENTIONED, WHICH IS THE COUNCIL TRANSFERS. SO WE DO NOT PLAN TO DO THAT AT THIS POINT IN TIME. WE'LL WAIT TILL WE FINISH OUR FISCAL YEAR 2026 AUDIT AND DREW UP THOSE NUMBERS AND PLAN TO DO THAT AS PART OF THE MID-YEAR AMENDMENT. AND AS FAR AS NON-DEPARTMENTAL GOES, I DON'T HAVE OR WE DON'T HAVE ANY SERVICE LEVEL REQUESTS IN HERE. MORE THAN HAPPY TO ANSWER ANY QUESTIONS ON OVERALL THEMES FOR GENERAL FUND REVENUES, THE TEAM OVER THE NEXT FEW STEPS JUST TO MAYBE ANSWER SOME QUESTIONS BEFORE, BUT THEY'RE GOING TO COVER REVENUES BY COST CENTER. SO IF YOU HAVE ANY GENERAL QUESTIONS ABOUT PARKS REVENUE OR ANYTHING SPECIFIC, EMS OR TO COST CENTERS, THE THE TEAM WILL ANSWER THOSE AND WE'LL COVER THOSE NEXT. ANY QUESTIONS FOR ME? OKAY. I THINK I'M GOING TO HAND IT OVER TO ASSISTANT CITY MANAGER JACK DALY. HAS HE BEEN SWORN IN OFFICIALLY? IS THERE AN OFFICIAL SWEARING IN? I THINK THIS IS IT RIGHT NOW. YEAH. YEAH. IT WAS NATE'S JOB TO DO THAT. SO THANK YOU. MAYOR. COUNCIL. JACK DALY, ASSISTANT CITY MANAGER, HERE TO TALK ABOUT THE FIRST BUCKET OF GENERAL FUND COST CENTER EXPENSES, KIND OF HOW THIS FLOW WORKS. WE'LL TALK THROUGH FISCAL 26 REVENUES, EXPENSES, THEN FISCAL 27 REVENUES AND EXPENSES, AND THEN ANY NOTABLE ITEMS OR SERVICE LEVEL REQUESTS. SO TO GET US STARTED TALKING ABOUT PARKS. SO THIS IS PARKS, PARKS AND RECREATION TENNIS CENTER AND GARY PARK REVENUES FOR THIS FISCAL YEAR ARE PROJECTED AT 2.7% UNDER BUDGET, WITH RESERVATION REVENUE AND MEMBERSHIPS SLIGHTLY BEHIND BUDGET OVERALL. AND THEN ON THE EXPENSE SIDE, PROJECTED TO BE 2% UNDER BUDGET, SOME VACANCY SAVINGS AND SOME. BALANCE WITH SOME TEMP SEASONAL EMPLOYEE 
          [00:45:08]
BUDGETS THAT ARE OVER BY ABOUT $100,000. BUT OVERALL PROJECTED INCREASE COMPARED TO 5% COMPARED TO 2025. LOOKING FORWARD TO FISCAL 2027, WE'RE EXPECTING REVENUES TO INCREASE 4.7% COMPARED TO THE 2026 BUDGET. THAT'S LARGELY DUE TO MEMBERSHIP PASSES AND ADMISSION REVENUES AND EXPENSES. YOU'LL SEE THIS. YOU KNOW, THIS 15%, I'M SURE JUMPS OUT, BUT THAT'S ATTRIBUTABLE MAINLY TO RECOGNIZING THE ACTUAL IT AND VEHICLE JOINT SERVICE COSTS IN THE FUND. SO YOU'LL SEE NUMBERS LIKE THIS RECURRING THROUGHOUT. AND THEN A SLIGHT INCREASE TO TO POOL SUPPLIES AND UTILITIES FOR RECREATION PARKS AND REC TWO SERVICE LEVEL REQUESTS PROPOSED. THE FIRST IS A PAY INCREASE FOR FITNESS INSTRUCTOR FITNESS INSTRUCTORS AT THE REC CENTER, AND THE SECOND IS TO INCREASE OUR CONTRACTED MAINTENANCE BUDGET BY ABOUT $35,000 FOR GARY PARK PHASE TWO MAINTENANCE. THE NEXT COST CENTER I'LL MOVE TO IS LIBRARY. 
          AT THE LIBRARY, REVENUES ARE PROJECTED 7.6% OVER BUDGET. THE RENTAL REVENUE IS A LITTLE LOWER THAN ANTICIPATED. THAT'S DUE TO. AND YOU'LL SEE A CORRESPONDING INCREASE IN REVENUE BECAUSE GRACE HERITAGE REVENUE DOLLARS ARE HITTING THE DOWNTOWN AND TOURISM FUND, AND THEN REGISTRATION FEES ARE LOWER THAN LAST YEAR AFTER THE FEE INCREASE. SO PROJECTED OVERALL 8.3% DECREASE COMPARED TO FISCAL 25 ON THE EXPENSE SIDE, PROJECTED AT 2.9% UNDER BUDGET, RELATIVELY SMALL SAVINGS AND A COUPLE SPEND CATEGORIES AND SOME VACANCY SAVINGS. REVENUES FOR THE LIBRARY FOR 2027, 2.1% DECREASE COMPARED TO 2026. JUST RIGHT SIZING THE ROOM RENTAL AND MISCELLANEOUS REVENUE CATEGORIES. AND THEN AGAIN, LIKE I EXPLAINED WITH PARKS, THIS 17% INCREASE IS LARGELY ATTRIBUTABLE TO THE TECHNOLOGY ALLOCATION, JOINT SERVICE, AND THEN MARKET ADJUSTMENT FOR SALARIES. AND THERE IS ONE SERVICE LEVEL REQUEST PROPOSED. IT'S ACTUALLY GOING TO BE FUNDED BY THE FRIENDS OF THE LIBRARY, AND THAT'S 17000 FOR AV UPGRADES IN THE CLASSROOM. ALL RIGHT. MOVING ON TO PUBLIC WORKS. SO PUBLIC WORKS IS A ROLL UP OF CODE COMPLIANCE, PUBLIC WORKS ADMINISTRATION, OUR STREETS DEPARTMENT AND TRANSPORTATION PLANNING. THE REVENUES ARE PROJECTED AT 52000 OVER BUDGET. YOU CAN SEE THESE NUMBERS SWING WILDLY. THIS IS NOT A LOT OF REVENUES. WE'RE TALKING ABOUT THIS LIKE 50 $70,000. AND THERE WAS A BIG THERE WAS A SOME PROPERTY DAMAGE AND THERE WAS AN INSURANCE PAYMENT THAT HAS US OVER BUDGET EXPENSES PROJECTED TO BE 4.2% UNDER BUDGET VACANCY SAVINGS, SOME SAVINGS AND OPERATIONAL MAINTENANCE. BUT WE DID HAVE AN OVERAGE IN OVERTIME, LARGELY DRIVEN BY WINTER STORM AND SPECIAL EVENT WORK. AND THEN IN 2027, AGAIN, YOU KNOW, $13,000 SWING IN REVENUES THAT'S FORECASTED, INCREASED REVENUE FOR CODE COMPLIANCE. AND THEN THIS EXPENSES, AGAIN, LARGELY ATTRIBUTABLE TO TECHNOLOGY, JOINT SERVICES, VEHICLE LEASE. AND THEN THERE ARE SOME MONIES FOR TRANSPORTATION PLANNING. THEIR RIDE WAS FUNDED AS A ONE TIME LINE ITEM IN THE FISCAL 26 BUDGET. THAT'S GOING TO BE AS I'LL TALK IN THE NEXT SLIDE. THAT WILL BE A ONGOING REQUEST FOR 2027. ALSO IN 2027, PUBLIC WORKS IS REQUESTING AN ADMINISTRATIVE ASSISTANT, THAT ADMINISTRATIVE ASSISTANT. THOSE COSTS ARE ALLOCATED FROM NOT ONLY THE GENERAL FUND, BUT STORMWATER AND SOLID WASTE, AND THEN A PROJECT MANAGER TO HELP WITH FACILITY PROJECTS. AND THEN ON THE TRANSPORTATION PLANNING SIDE, I ALREADY MENTIONED. RIGHT. AND THEN A PARTIAL UPDATE OF THE FUTURE MOBILITY PLAN TIED TO THE SOUTHWESTERN PROJECT. AND SO WITH THAT, I THINK I'LL TURN IT OVER TO WAYNE. GOOD AFTERNOON, MAYOR COUNCIL. ALL RIGHT. SO FOR PUBLIC SAFETY 2026 REVENUES AND EXPENSES. REVENUES ARE PROJECTED AT 4% OVER BUDGET DUE TO PROJECTED HIGHER THAN BUDGETED EMS REVENUE. THE PROJECTED INCREASE IS ABOUT 10% COMPARED TO 2025. ACTUALS ON THE EXPENSE SIDE, ABOUT 1.9% UNDER BUDGET. IT'S GOING TO BE SOME OVER. OVERTIME IS OVER IN FIRE SERVICES, KIND OF PARTIALLY OFFSET BY VACANCY SAVINGS. UTILITY EXPENSES ARE OVER BUDGET SAVINGS AND SALARY VACANCIES ON BOTH SIDES, CELLULAR DATA PLAN AND POLICE ADMIN AND SOFTWARE MAINTENANCE AND SUBSCRIPTIONS AND FIRE 
          [00:50:04]
SUPPORT. OVERALL PROJECTED INCREASE OF 7.4% COMPARED TO LAST YEAR. FOR 2027. REVENUES 11% INCREASE COMPARED TO 2026. THAT'S GROWTH IN EMS REVENUE AND THE ESD CONTRACT 11.2% INCREASE COMPARED TO 2026. ON THE EXPENSE SIDE, THAT'S THE MARKET INCREASES WITH AN AVERAGE OF 5% FOR BOTH POLICE AND FIRE INCREASES IN OVERTIME THAT ARE MORE IN ALIGNMENT WITH PRIOR YEAR, PRIOR YEAR ACTUALS DECREASE IN TECHNOLOGY ALLOCATION, AND THEN THE JOINT SERVICE ALLOCATION SHIFT INTO THE COST CENTER, INCREASE IN FACILITY ALLOCATION AS WELL. 
          FOR SERVICE LEVELS, YOU HAVE SIX FIREFIGHTERS, WHICH IS OUR SECOND YEAR INSTALLMENT FOR STATION EIGHT. SO NEXT YEAR WE'D HAVE ANOTHER SIX, THE EMS SUBSTATION. SO THERE'S MONEY FOR LEASE SPACE. AND THAT IS TO IMPROVE OUR EMS RESPONSE TIME DURING PEAK DEMAND OUT ON OUR WESTERN CORRIDOR ALONG 29. ON THE POLICE SIDE, YOU HAVE TWO PATROL OFFICERS. IF YOU REMEMBER, IN CHIEF CHEETAH'S UPDATE, WE HAVE MAP THE MANPOWER ALLOCATION FOR PATROL, WHICH IS A STAFFING STUDY THAT WE DO ANNUALLY. IT'S TWO TWO FOR PATROL AND THEN ONE DETECTIVE. AND THEN THE LOGISTICS TECHNICIAN IS BASICALLY OUR QUARTERMASTER THAT IS CURRENTLY A SWORN POSITION. THIS WOULD CIVILIANIZED THAT POSITION AND RECOGNIZE THAT SWORN WOULD BE MOVED TO CID. SO THERE WOULD BE A NET GAIN OF A SWORN OFFICER AND CID AS WELL. WHEN DO WE ANTICIPATE THOSE POLICE OFFICERS COMING ON? EARLY IN THE NEXT BUDGET CYCLE, OR IS THAT A I THINK THOSE ARE OCTOBER 1ST. YES, GENERALLY, PUBLIC SAFETY ARE OCTOBER 1ST. OKAY, GREAT. AND FIREFIGHTERS, THOSE WILL BE A LITTLE BIT MORE OF A LAG TIME. NO, THEY'RE PUBLIC SAFETY ARE GENERALLY OCTOBER 1ST. OKAY. GREAT. YES, MA'AM. PERFECT. THANKS. YEP. OKAY. SO MAYOR AND COUNCIL. NICK WOOLERY, ASSISTANT CITY MANAGER. SO THIS YEAR WE'VE COMBINED ALL OF ALL THE DEVELOPMENT DEPARTMENTS INTO ONE SLIDE. THAT INCLUDES DEVELOPMENT, ADMINISTRATION, DEVELOPMENT, ENGINEERING, PLANNING AND INSPECTION SERVICES. SO FOR FY 26, REVENUES ARE PROJECTED 5% UNDER BUDGET. AND THAT'S MADE UP OF PRIMARILY PLANNING FEES, WHICH ARE DOWN PRETTY SIGNIFICANTLY. 
          SO WE'RE WE'RE KIND OF IN AN INTERESTING POINT FROM A DEVELOPMENT STANDPOINT. YOU ALL HAVE SEEN A LOT OF NEW MUD AND PIT REQUESTS, WHICH IS SORT OF THE FRONT, FRONT END OF THE PROCESS. THE PLANNING SIDE IS WHAT'S NEXT. THAT'S BEEN DOWN A LITTLE BIT RECENTLY, BUT YOU'LL SEE PERMIT REVENUE, WHICH IS KIND OF THE THE LAST PIECE OF THE PROCESS IS STILL UP THIS YEAR. SO AND THAT'S, THAT'S PRIMARILY ON THE COMMERCIAL SIDE. WE'VE STILL SEEN PRETTY SIGNIFICANT COMMERCIAL DEVELOPMENT ACTIVITY ON THE EXPENSE SIDE FOR FOR FY 26, WE'RE PROJECTED ALMOST 10% UNDER BUDGET DUE PRIMARILY TO VACANCY AND SALARY SAVINGS. 
          WE'VE ALSO GOT SAVINGS IN ENGINEERING SERVICES. WE'VE DONE LESS CONTRACTING OUT OF PLAN REVIEWS THIS YEAR. AND THEN WE'VE ALSO GOT SOME OTHER CONSULTING SAVINGS ON THE PLANNING SIDE AS WELL. OVERALL, THERE'S AN INCREASE FROM FY 25. BUT AGAIN, PROJECTED 10% UNDER BUDGET FOR FY 27. REVENUES WERE SHOWING AN 8.5% DECREASE COMPARED TO FY 26. AND AGAIN, THAT'S JUST KIND OF THAT CONTINUATION OF OF PLANNING FEES BEING ADJUSTED DOWN TO A LOWER LEVEL. AND THEN ON THE EXPENSE SIDE, WE'VE GOT A 5.3% INCREASE. AND THAT'S PRIMARILY DUE TO ALLOCATIONS, VEHICLE LEASE AND MAINTENANCE, JOINT SERVICE ALLOCATION. AND THEN WE'VE GOT SOME CONSOLIDATION OF CONSULTING COSTS AND THEN MARKET ADJUSTMENT FOR SALARIES. 
          SO UNDER ADMINISTRATIVE SERVICES I WILL COVER THESE COUPLE SLIDES. THIS INCLUDES JUST THE ADMIN SERVICES COST CENTER AS WELL AS EMERGENCY MANAGEMENT COUNCIL, CITY SECRETARY AND GENERAL GOVERNMENT CONTRACTS. SO REVENUES IT'S AS YOU IMAGINE, THESE KIND OF FUNDS, THERE'S LIGHT. BUT OUR REVENUES ARE A PUBLIC INFORMATION REQUEST. AT $5,000, EXPENSES ARE PROJECTED TO BE 22% OVER BUDGET. THE PRIMARY REASONS FOR THAT ARE ECONOMIC DEVELOPMENT AGREEMENTS THAT CAME IN OVER BASICALLY OVER WHAT WE HAD FORECASTED THEM TO BE, WHICH ACTUALLY IS A GOOD THING BECAUSE THEIR PERCENTAGE BASED. SO IT JUST SHOWS THE PERFORMANCE OF OUR INCENTIVE AGREEMENTS. WE ALSO HAVE A RETIREE BENEFIT PAYOUT AND ADMINISTRATIVE SERVICES FOR ONE OF OUR ASSISTANT CITY MANAGERS WHO RETIRED. AND THEN 
          [00:55:05]
WE ACTUALLY HAVE THEN SOME VACANCY SAVINGS RECOGNIZED IN DIFFERENT COST CENTERS THAT AND THAT'S IN OUR GENERAL GOVERNMENT CONTRACTS LINE ITEM WHERE WE RECOGNIZE THOSE VACANCY SAVINGS AND OVERALL PROJECTED INCREASE FROM 2025 OF 21.8% FOR ADMINISTRATIVE SERVICES, INCLUDING ALL THOSE AREAS FOR 2027, YOU'LL SEE REVENUES, PUBLIC INFORMATION REQUEST, BUT THEN EXPENSES DECREASE FOR 55%. SO THE MAIN THE MAIN REASONS FOR THAT IS BECAUSE OF DECREASES THAT WE SAW IN OUR TECHNOLOGY AND FACILITIES ALLOCATION. JUST BASED ON OUR METHODOLOGIES, WE DID INCLUDE MARKET ADJUSTMENTS INTO OUR EXPENSES. THE JOINT SERVICE ALLOCATION MOVING OUT OF THIS IS THIS IS WHAT WE'RE TALKING ABOUT EARLIER, MOVING GENERAL GOVERNMENT SERVICES, MOVING THOSE JOINT SERVICES ALLOCATION OUT OF GENERAL GOVERNMENT CONTRACTS. SO THAT'S A VERY LARGE ITEM. BUT THEN YOU CAN ALSO SEE INCREASES THAT WE HAD IN ECONOMIC DEVELOPMENT AGREEMENTS, WHICH IS THE WOLF RANCH PIT THAT THAT'S FOR THE WOLF RANCH TOWN CENTER. THAT'S A OLDER AGREEMENT THAT WE HAVE. HILLWOOD AGREEMENT, WHICH IS FOR WOLF RANCH, WOLF RANCH RESIDENTIAL DEVELOPMENT, AND THEN COSTCO. WE DO HAVE ONE SERVICE LEVEL REQUEST, AND THAT IS FOR OUR STRATEGIC AND COMPREHENSIVE PLAN UPDATE, WHICH WE DISCUSSED WITH YOU ALL AT THE COUNCIL GOAL SETTING SESSION. AND WE'VE GOT THAT ESTIMATED AT AND IT'S UNDER ONE TIME FUNDING FOR $450,000. AND OUR PLAN WOULD BE TO KICK THAT OFF AT THE START OF 2027. I'LL NOW TRANSITION TO MUNICIPAL COURT. SO MUNICIPAL COURT PROJECTED 11% BELOW BUDGET. FROM REVENUE STANDPOINT, THE MAJOR REASON FOR THAT IS SOME OF THE VACANCIES WE'VE HAD WITHIN OUR TRAFFIC DIVISION IN THE POLICE DEPARTMENT, WHICH KIND OF THEREFORE RESULT IN REVENUE IN THE MUNICIPAL COURT. SO OVERALL PROJECTED DECREASE IS 13.2% COMPARED TO 2025. WE ANTICIPATE THAT THAT WILL BE RECOVERED OVER THIS NEXT YEAR OR INCREASE OVER THIS NEXT YEAR. EXPENSES ARE PROJECTED TO BE 1.6% UNDER BUDGET FOR MUNICIPAL COURT. LOOKING AT 2027, 11.3% INCREASE COMPARED TO 2026. THAT AGAIN, BETTER ALIGNS WITH OUR PROJECTIONS FOR PARKING FINES AND COURT FINES, AND EXPENSE IS 24.7% INCREASE COMPARED TO 2026. 
          THE MAIN REASON FOR THAT IS FOR THE JOINT SERVICE ALLOCATION SPLIT, SO THEY'RE COVERING THEIR PORTION OF JOINT SERVICES. THE JOINT SERVICE ALLOCATION. AND WE ALSO HAVE ONE SERVICE REQUEST AND THAT'S FOR MUNICIPAL COURT SUPERVISOR. THIS TO THE RIGHT ARE JUST SHOWING YOU SOME CHARTS OF THE VOLUME OF ACTIVITY THAT WE'RE HAVING. WE HAVE WE HAVE SEEN WHAT WE'VE SEEN, NOT AS HIGH AS WHAT WE BUDGETED IN REVENUE OR YEARLY CITATIONS. WE DO. WE HAVE SEEN A BIG UPTICK FROM 2022 ALL THE WAY TO 2025. ANTICIPATE THAT THAT CONTINUES TO INCREASE AS WE CONTINUE TO BE FULLY STAFFED OR WORK THROUGH FULL STAFFING ON ON THE POLICE SIDE. SO THAT'S OUR JUSTIFICATION FOR THE SERVICE LEVEL REQUEST. I'M GOING TO HAND IT OVER TO NICK, BUT HAPPY TO ANSWER QUESTIONS BEFORE I DO THAT. OKAY. OKAY. DOWNTOWN ARTS AND EVENTS. SO FOR FY 26 PROJECTED AT A 51.5% OR $25,000 ABOVE BUDGET, YOU KNOW, THIS IS THIS IS ACTUALLY A REALLY GOOD NEWS STORY. IF YOU LOOK LOOKED AT KIND OF ALL THE CATEGORIES OF REVENUE THAT COME IN AND WE'LL TALK ABOUT THE ARTS CENTER A LITTLE BIT LATER, THE CITY TOOK OVER MANAGING THE ARTS CENTER BACK IN 2024. AND SO WE ARE SEEING CONTINUAL INCREASES IN BASICALLY ALL THE CATEGORIES OF REVENUE WITHIN THIS DEPARTMENT, WHICH INCLUDES NOT ONLY ARTS, BUT SPECIAL EVENTS. SO WE'RE SEEING ARTS CENTER MEMBERSHIPS, ARTS CENTER SALES, SPECIAL EVENT REVENUE, AND THEN ARTS CENTER INSTRUCTIONAL PROGRAMS. ALL THOSE CATEGORIES OF REVENUES HAVE CONTINUED TO GO UP DURING FY 26. EXPENSES ARE PROJECTED TO END AT BUDGET, WHICH WOULD BE A 13.4% INCREASE FROM FY 25 AND THEN MOVING TO FY 27. 
          REVENUES ARE SHOWN AT 47.2% INCREASE OVER FY 26. AND THEN ON THE EXPENSE SIDE, WE'VE GOT A 20.9% INCREASE. AND AGAIN, THAT'S PRIMARILY DUE TO JOINT SERVICE ALLOCATION AND TECHNOLOGY ALLOCATION. YOU'RE SEEING AN INCREASE IN ARTISTS. THAT'S NOT ACTUALLY AN INCREASE IN ARTISTS. IT'S IT'S SOME THINGS ON THE ACCOUNTING SIDE THAT WE'RE SHIFTING AROUND. SO WHEN WE GET REVENUE IN AT THE ART CENTER, LET'S SAY WE SELL A PIECE OF ART AT THE ART CENTER, THE, THE ART CENTER, THE CITY KEEPS A PERCENTAGE OF THAT. AND THEN A PERCENTAGE OF THAT SALE GOES BACK TO THE ARTISTS THEMSELVES. SO THAT'S BASICALLY JUST SHIFTING AROUND HOW WE PAY 
          [01:00:05]
THE ARTISTS BACK. COMMUNICATIONS AND PUBLIC ENGAGEMENT. I ALWAYS LIKE TO SAY WHEN WE TALK ABOUT THEIR BUDGET, THERE'S A LOT TO WRITE HOME ABOUT WITH CAPE IN TERMS OF WHAT THEY'RE ACCOMPLISHING FROM A BUDGET STANDPOINT. NOT A LOT TO WRITE HOME ABOUT BECAUSE THERE'S NO REVENUE. EXPENSES ARE PROJECTED UNDER BUDGET. THEY'VE GOT SAVINGS IN A FEW DIFFERENT CATEGORIES. AND THEN OVERALL, THERE'S A PROJECTED INCREASE OF 14 1%, 14.1% COMPARED TO THE FY 25 ACTUALS, AND THEN FY 27. ON THE EXPENSE SIDE, AGAIN, WE'VE GOT SOME INCREASES FROM THE ALLOCATION SHIFTS. AND THEN THERE'S ONE SERVICE LEVEL REQUEST. AND THAT IS A ONE TIME COST FOR THE MAY 2027 BOND ELECTION. AND THAT'S THE $100,000 TO HELP US WITH OUR EDUCATIONAL EFFORTS FOR THAT BOND PROGRAM. I'M THESE ARE THE LAST FEW SLIDES FOR THE GENERAL FUNDS. WE'LL PAUSE THERE AND SEE WHAT KIND OF QUESTIONS YOU'LL HAVE AT THAT TIME. SO ASKED IS FOR 2026 WE HAVE IT HAS NO REVENUE. SO NOTHING TO REPORT ON THAT. BUT EXPENSE SIDE IS PROJECTED TO ABOUT 10% UNDER BUDGET FOR VACANCY SAVINGS AND ALSO SAVINGS ON COMPUTER SOFTWARE. BUT OVERALL PROJECTED INCREASE OF 30 ALMOST 30, WELL 34 OR 5% COMPARED TO 2025. YOU'LL RECALL, THOUGH, THAT IT STARTED IN 2025, SO 2025 WAS A PARTIAL YEAR FOR SGT. LOOKING TOWARDS 2027 FROM AN EXPENSE STANDPOINT, IT'S AN INCREASE OF 3.5% COMPARED TO THE 26 BUDGET. THAT'S JUST ANTICIPATION OF BEING FULLY STAFFED AND THEN THE ALLOCATION INCREASES. WE DID HAVE A DECREASE IN THE FACILITIES ALLOCATION, AND THERE ARE NO SERVICE LEVEL REQUESTS WITHIN SGT. AND THEN I'LL WRAP UP THE GENERAL FUND WITH THE CIP SLIDES. YOU'VE SEEN THIS BEFORE, BUT THIS IS JUST A REMINDER OF WHAT'S PLANNED FOR THIS NEXT YEAR. YOU HAVE OUR IN PARKS AND ADA TRANSITION PLAN. THE MAJOR EXPENSE IN PARKS IS BLUE HOLE IMPROVEMENTS 7.9 MILLION. WE HAVE BLUFF STREET TRAIL CONNECTION PARKS, EQUIPMENT REPLACEMENT BASED ON OUR REPLACEMENT SCHEDULE, PARKS, IMPROVEMENTS IN THE MEDIUM PRIORITY CATEGORY, AND THEN AND THEN RIVER RIDGE PARK RENOVATION, WHICH WHICH IS REPLACING THE RIVER RIDGE POOL THAT WILL BE DEMOLISHED. AND. HEY, DAVID. YES, I'M GOING TO SPEAK UP FOR MR. PITTS, WHO'S NOT HERE, BUT I WAS WE ANTICIPATED HE MIGHT NOT BE HERE TODAY, SO HE ASKED ME TO BE HIS VOICE ON THIS. KEVIN WOULD LIKE TO PROPOSE THAT WE DELAY THE BLUE HOLE PROJECT. I'LL LET HIM COME IN LATER WITH HIS REASONING BEHIND THAT. BUT, YOU KNOW, HE BELIEVES THAT WE SHOULD WAIT UNTIL WE REDO ROCK STREET AND KIND OF ALL THAT STUFF GETS DONE AND AND THAT WE'VE GOT OTHER ROAD PRIORITIES THAT TAKE PRECEDENCE OVER IT. 
          AND SO HE ASKED ME TO KIND OF THROW THAT OUT FOR COUNCIL TO CONSIDER AND DISCUSS. I KNOW THAT'S A CHANGE FROM THE PATH WE'VE BEEN ON, BUT BUT THAT WAS ONE OF THE ITEMS THAT THAT HE WAS GOING TO PROPOSE TODAY. AND SINCE HE CAN'T BE WITH US RIGHT NOW, I'M THROWING THAT OUT THERE AND WANT TO KNOW IF ANYBODY'S GOT ANY THOUGHTS ON IT. YEAH. I MEAN, I'D RATHER WE DIDN'T DO THAT. I, I MEAN, WE, I THINK WE'VE HAD PRETTY EXTENSIVE DISCUSSIONS OF BLUE HOLE. I, I'VE TALKED TO KEVIN, YOU KNOW, PERSONALLY ABOUT BLUE HOLE, ALTHOUGH HE DIDN'T, HE DIDN'T MENTION THIS TO ME. I UNDERSTAND SOME OF HIS CONCERNS. I MEAN, MY RECOMMENDATION WOULD BE THAT WE LEAVE IT IN THE BUDGET FOR NOW, AND THEN MAYBE WE HAVE A MORE ROBUST DISCUSSION AT SOME POINT WHEN HE'S ON THE DAIS. BUT I THINK, I MEAN, WE HAD A PRETTY. YEAH. 
          ANYWAY, IT'S MAYBE A POLICY LEVEL DISCUSSION. I DON'T WANT TO GET INTO IT TOO MUCH. NO, NO THAT'S FINE. I MEAN, I THINK I KIND OF JUST WANTED TO GET EVERYBODY'S THOUGHTS ON IT. AND IF THE MAJORITY IS LIKE, LEAVE IT IN AND MOVE FORWARD, THEN WE DON'T HAVE TO NEED TO HAVE AN EXTENDED DISCUSSION ON IT. NO, I MEAN, I THINK IT CAN'T HURT TO LEAVE IT IN UNLESS THERE'S SOMETHING SPECIFIC THAT WE NEED THE DOLLARS FOR. MY, MY, I MEAN, IF EVERYBODY ELSE IS IN AGREEMENT, MY RECOMMENDATION WOULD BE TO LEAVE IT IN AND THEN HAVE A DISCUSSION ABOUT IT, YOU KNOW, DOWN THE ROAD. YEAH. UNDERSTOOD. AND DAVID, FROM A PROCEDURAL STANDPOINT, I MEAN, WHEN, WHEN WOULD WE BE SELLING THOSE SPECIFIC BONDS? AND THAT DEBT SALE WOULD BE IN THE SPRING. WE COME TO YOU ALL IN JANUARY TO KIND OF REVIEW OUR DEBT CAPACITY, CONFIRM THE PROJECTS AGAIN IN JANUARY OF 27 IS WHEN WE DO THAT, YOU'LL ALSO WE ALSO PLAN TO BRING BACK MORE 
          [01:05:03]
PRESENTATIONS WITH YOU ALL ON PLANNING FOR THE 2027 BOND PROGRAM, WHICH YOU'VE INDICATED INTEREST TO DO. AND SO WE WILL BE WORKING THROUGH KIND OF THE PROCESS TO SHAPE THAT BOND PROGRAM AT THAT TIME. THAT'S NOT FOR THE DEBT SALE OF 2027, BUT IT'S JUST MORE DEBT. YEAH, AND THAT'S A GOOD POINT. I MEAN, IF I MEAN, I THINK FROM WHAT KEVIN WAS TELLING ME, I MEAN, YOU KNOW, HIS PREFERENCE WOULD BE IF WE DON'T SPEND THAT MONEY THERE, WE'RE SPENDING ON ROADS. 
          AND SO THERE'S REALLY NO HARM IN LEAVING IT IN THE BUDGET AS DEBT. AND IF WE MOVE IT FROM BLUE HOLE TO ROADS, I MEAN, RIGHT, WE HAVE SOME TIME BEFORE WE HAVE TO MAKE THAT FINAL DECISION. I GUESS WE DO. WE'RE BASING THE, YOU KNOW, WE'RE BASING THE TAX RATE ON, ON THE REQUIREMENTS OF THE DEBT SERVICE AS WELL AS ON THE OPERATING SIDE. AND SO HAVING THE CAPITAL IMPROVEMENT PLAN IS A PART OF OUR MULTI-YEAR PLANNING. AND AS PART OF THE SETTING, THE TAX RATE BASED ON THAT PLAN, WHAT WE COULD DO, WHAT WE NEED TO DO IS THEN FIGURE OUT WE'D EITHER WE CAN ADJUST. EITHER WAY, WE CAN ADJUST TO HOLD. IF YOU WANT TO HOLD AND PUSH IT LATER, THEN WE PROBABLY NEED TO BRING ANOTHER PROJECT FURTHER, YOU KNOW, UP TO MATCH THAT. YEAH. AND I THINK THAT'S WHAT HE WAS, HE WAS GOING TO ADVOCATE FOR WAS JUST KIND OF MOVING IT TOWARDS A ROAD PROJECT OF EQUAL VALUE TO NOT MESS WITH THE BUDGET. I THINK WHAT'S AND NICK'S GOING TO CHIME IN HERE. ONE OF THE THINGS THAT YOU YOU MAY AS WE'VE LOOKED AT OUR 2021 ROAD BOND, WE'RE WE'VE WE'VE FUNDED IT. SO IT'S NOT AS THOUGH THERE ARE PROJECTS WAITING FOR THE 2020 ROAD BOND TO BE FINISHED OR WE DON'T HAVE I DON'T BELIEVE WE HAVE MORE PROJECTS. NICK. I DON'T KNOW IF YOU WANT TO TALK TO THAT. THERE WOULDN'T BE A THERE WOULDN'T BE A ROAD PROJECT TO JUST LIKE DROP IN NEXT YEAR. YEAH, NOT IN NEXT YEARS. I MEAN, HONESTLY, PROBABLY WHAT WE WOULD DO SINCE THERE'S NOT A ROAD PROJECT THAT JUST NECESSARILY DROP IN THE REC CENTER IS THE THING THAT'S FUNDED IN, I THINK, 28. SO IT PROBABLY WOULD JUST BE SHIFTING UP SOME OF THE DEBT FOR THE REC CENTER, BECAUSE THERE WOULDN'T THERE JUST WOULDN'T BE LIKE A NEW ROAD PROJECT THAT WE COULD DO. OKAY. NEXT SPRING. KEVIN. 
          SO HIGHLY SUPPORTIVE. SO THE THREE YEAR, YOU KNOW, WE'VE GOT, I BELIEVE WE HAVE BASED ON THE NEXT THREE YEARS, WE HAVE ALL THE CAPACITY IN THE $0.24 TAKEN UP IN THOSE PROJECTS BETWEEN THE 2020 ROAD BOND AND THE 23 FACILITIES BOND. THAT'S CORRECT. SO SO NEXT YEAR WE HAVE IN 2028, HOW MUCH IS PROGRAM FOR THE RECREATION CENTER EXPANSION? 28 IS 45 MILLION. THERE'S NOT REALLY A WAY TO MOVE 7.9 MILLION UP FOR THAT. SO WE CAN WE CAN DO SOME HOMEWORK ON THAT IF Y'ALL WANT TO, BUT IT'S GOING TO WELL, LET'S KIND OF GET EVERYBODY'S CONSENSUS BEFORE WE DO A WHOLE LOT OF LEGWORK ON IT. YEAH. SO I WOULD ALSO CONCUR THAT I THINK WE GOT A LOT OF PUBLIC FEEDBACK ON THE BLUE HOLE EXPANSION AND THE NEED FOR THAT, AND THAT BEING A HUGE PART OF OUR DOWNTOWN MASTER PLAN, EVEN THOUGH IT WASN'T, YOU KNOW, DOWNTOWN MASTER PLANNING, BUT IT CAME FORWARD FROM THE PUBLIC THAT THAT IS SOMETHING THAT THEY WANTED TO SEE FUNDED. SO I WOULD HAVE CONCERN ABOUT US CHANGING THAT. I DO UNDERSTAND THE RELATION BETWEEN ROCK STREET AND THINK THAT DOES MAKE SOME SENSE, BUT FROM MY RECOLLECTION, ROCK STREET IS ONE OF THE LATER THINGS THAT WOULD BE HAPPENING WITH THE DOWNTOWN MASTER PLAN IMPROVEMENTS. AND THAT ACTUALLY WOULDN'T BE, YOU KNOW, MY TOP PRIORITY FOR DOWNTOWN MASTER PLAN IMPROVEMENTS IN THE IN THE BEGINNING, I THINK IT'S A GREAT PROJECT. I THINK IT'S GOING TO COME LATER. AND SO TO HOLD BLUE HOLE ALL THE WAY UNTIL ROCK STREET, I WOULD HAVE SOME REAL SIGNIFICANT CONCERNS ABOUT AS WELL, BECAUSE I THINK BLUE HOLE IS, IS A DIFFERENT PROPERTY. IT'S IT'S USED DIFFERENTLY. YOU KNOW, IT JUST I THINK IT PLAYS WELL WITH ROCK STREET, BUT I THINK DOESN'T NEED TO BE DELAYED ALL THE WAY UNTIL THE ROCK STREET PROJECT. AND THEN LASTLY, I THINK, YOU KNOW, AGAIN NOW IT SOUNDS LIKE WE'RE HEARING THERE WOULDN'T BE A ROAD PROJECT THAT COULD SUB IN. AND I WOULD WANT TO KNOW, YOU KNOW, WHAT WOULD WE BE SUBBING IN FOR THESE FUNDS? SO, YOU KNOW, I'D PREFER TO LEAVE IT IN THE BUDGET AT THIS POINT. FOR ME, THE BLUE HOLE IS NOT A PRIORITY. I THINK WE'RE SPENDING MORE THAN WE NEED TO THERE. THAT DOES NEED SOME IMPROVEMENTS. I DON'T THINK IT NEEDS THAT MUCH. IF IT WAS DELAYED, AND IF WE COULD FIND A GOOD PLACE TO PUT THAT MONEY, I'D GO FOR THAT. I'M FOR LEAVING IT IN THE BUDGET FOR NOW. IF IT CAN BE ALTERED AT A LATER POINT AFTER DISCUSSION, I'M FINE WITH THAT, BUT I THINK IT NEEDS TO HAVE A PLACEHOLDER IN THERE. I'M ALSO FOR LEAVING IT IN THE BUDGET AT THE PRESENT TIME. I ECHO SOME OF WHAT COUNCIL MEMBER BORIS SAID. BLUE HOLE. AS FAR AS THE CITIZENS OF GEORGETOWN, THEY FIND THAT TO BE AN IMPORTANT PROJECT. SO I JUST LEAVE IT IN THE BUDGET. I AGREE, YEAH, I WANT TO LEAVE IT IN THE BUDGET. WE'VE DONE A LOT OF WORK UP TO THIS POINT ON THAT, AND I THINK COST ESCALATION, IF WE DELAY, IS MY BIGGEST CONCERN. SO I LIKE WHAT WE'VE GOT NOW. ALL RIGHT. LET'S LEAVE IT IN. BUT FOR THE RECORD, KEVIN'S GONNA GET MAD AT ME. IF HE WAS HERE, HE WOULD HAVE DONE 
          [01:10:02]
A MUCH BETTER JOB ARGUING FOR HIS POSITION. BUT, MAYOR, I THOUGHT YOU DID. I WAS AN OBJECTIVE. JUST PUTTING THE IDEA ON THE TABLE ON THE CAPITAL IMPROVEMENT PLAN, AS WE TALKED ABOUT, THAT WE WILL NOT SELL THE DEBT TILL THE SPRING. AND WE HAVE MADE CHANGES TO THE CAPITAL IMPROVEMENT PLAN FROM THE BUDGET TO THE ACTUAL DEBT SALE BASED ON VARIETY OF FACTORS. SO THERE'LL BE MORE TIME FOR DISCUSSION ON THAT. MOVING ON TO THE PARKS, FROM PARKS TO STREETS, YOU CAN SEE HERE WE HAVE THREE ITEMS HERE. ONE IS ANNUAL INTERSECTION IMPROVEMENTS, WHICH YOU ARE SEEING THAT BE EFFECTIVE WITH THE NORTHWEST BOULEVARD ROAD AS WELL AS LAKEWAY BOULEVARD THAT THAT ROAD JUST RECEIVED A SIGNAL UPGRADE AND THAT'S ACTIVATED AS WELL AS THE TURN LANES ARE STARTING TO BE DONE. SO THOSE ARE THE KIND OF IMPROVEMENTS YOU WOULD SEE WITH THOSE ANNUAL INTERSECTION IMPROVEMENTS. WE ALSO HAVE A PRIORITY SIDEWALK FUNDING AT $1 MILLION. AND THEN THE RIDGELINE BOULEVARD EXTENSION. AND THIS IS REALLY PREPARING FOR AN EXTENSION ON THE SOUTH SIDE OF GEORGETOWN OFF OF 1460 TO THE EAST. SO THAT SO AS WE MAKE CHANGES WITH THE INNER LOOP ROAD BEING CONSTRUCTED IN THE NEW INTERSECTION HAPPENING AT MAPLE, SAM HOUSTON AND INNER LOOP, SOME OF THE TERM MOVEMENT RESTRICTIONS. WE ALSO WANT TO MAKE SURE RIDGELINE FUNCTIONS AS A COLLECTOR ROAD AS A NEIGHBORHOOD COLLECTOR, AS WE'VE PLANNED FOR IT TO. SO THIS IS THE PHASE ONE OF THAT FACILITIES. THAT'S WHERE THE MAJORITY OF THE CIP WILL BE. AND THAT'S OUR PARTNERSHIP ON THE ANIMAL SHELTER FOR THE ANIMAL SHELTER EXPANSION, FOR OUR PARTNERSHIP IN THE REGIONAL ANIMAL SHELTER, FIRE STATION TEN IS ACTUALLY. THAT IS THE HEIRLOOM PROPERTY. SO AS A PART OF THE HEIRLOOM PYD AND THE HEIRLOOM DEVELOPMENT, THE ANNEXATION IN, THEY LEFT A SPOT FOR US FOR A STATION. WE BELIEVE IT'S MOST COST EFFECTIVE TO BUY THAT SITE AS QUICKLY AS POSSIBLE. AND SO WE WANT TO PROGRAM IT IN FOR FOR THE NEXT FISCAL YEAR FOR FIRE STATION TEN, LONG TERM PLANNING AND HEIRLOOM FOR THE FAR SOUTHWEST SIDE OF GEORGETOWN. 
          WE ALSO CONTINUED TO WANT TO DO NEEDS ASSESSMENTS IN OUR OLDER FIRE STATIONS. SO THREE AND FOUR TO KIND OF ASSESS HOW WE NEED TO MAKE FUTURE IMPROVEMENTS IN THOSE STATIONS. 
          WE ALSO HAVE JUST A SMALL RENOVATION OF THE SHOP AT THE PARKS AND RECREATION FACILITY, THE MAINTENANCE FACILITY, THE YMCA PARTNERSHIP. SO OUR PARTICIPATION IN THE REC CENTER, YMCA REC CENTER ON WILLIAMS DRIVE. AND THEN WE ALSO HAVE FUNDING FOR THE CUSTOMER SERVICE CENTER. THIS WOULD BE FOR THE JCO AREA. WHEN WE PRESENTED ON THE CUSTOMER SERVICE CENTER, YOU'LL RECALL THAT WE'RE HAVING 5000FT■!S ON THE FIRST FLOOR PLANNED FOR FUTURE RETAIL. OUR PROPOSAL IS FOR JEFFCO TO PURCHASE THAT SO THAT IT CAN BE PURCHASED AT A LATER DATE BY THE DEVELOPER OR BY SOUTHWESTERN TO BE INTEGRATED IN THE OVERALL MIXED USE PROJECT. THE OTHER ITEM WE WANTED TO HIGHLIGHT WAS WE ALSO HAVE FUNDING FROM OTHER DEPARTMENTS FOR THE CUSTOMER SERVICE CENTER, BECAUSE MANY OF THE DEPARTMENTS. IN FACT, MOST OF THE. WELL, MANY OF THE DEPARTMENTS ARE FUNDED ACTUALLY BY MULTIPLE DEPARTMENTS. THEIR OPERATING BUDGETS. SO WE BELIEVE IT'S APPROPRIATE FOR A SMALL PORTION OF THE CUSTOMER SERVICE CENTER TO ACTUALLY GO COME FROM THE FUNDING OF OTHER DEPARTMENTS, LIKE OUR WATER UTILITY AND ELECTRIC UTILITY THAT FUNDS PART OF ENGINEERING. IT FUNDS PART OF UTILITY BILLING. AND SO AND SO WE HAVE THAT PROGRAMED AT $4 MILLION. THAT'S NOT THE COST OF THE CUSTOMER SERVICE CENTER. YOU'LL RECALL THE COST OF CUSTOMER SERVICE CENTER IS CLOSER TO $60 MILLION. BUT THIS IS A PORTION PORTION OF THOSE TO ROUND OUT THE ENTIRE FUNDING FOR THAT PROJECT. WITH THAT, I'LL STOP THERE AND PAUSE AND SEE IF THERE ARE ANY QUESTIONS OR ANY OTHER ITEMS Y'ALL WANT TO DISCUSS IN THE GENERAL FUND AT THIS TIME. WHAT I PROPOSE WE DO IS MAYBE GO THROUGH A FEW, OH, GO THROUGH A FEW OF THE FUNDS, AND THEN MAYBE BEFORE WE HIT ONE OF THE MAJOR FUNDS LIKE ELECTRIC, WE CAN PAUSE AND TAKE A BREAK. I HAD A QUESTION GOING BACK TO, I THINK IT WAS JACK'S AREA THAT LIBRARY, PARKS, PUBLIC WORKS, TECH FEE ARE THOSE ONE TIME EXPENSES? ARE THOSE EXPECTED TO BE CONTINUOUS TECH UPGRADES THROUGH MANY YEARS? WHICH WHICH WHICH I THINK IT WAS. ARE YOU SPEAKING OF THE AUDIO VISUAL UPGRADES OR THE TECHNOLOGY ALLOCATION IN GENERAL? IT WAS EXPENSES WERE UP LIKE LIBRARY 17% INCREASE A LOT DUE TO TECHNOLOGY ALLOCATION. PARKS AND REC AGAIN, 15.1 INCREASE IN TECH ALLOCATION. I THINK THERE WAS PUBLIC WORKS TOO. SO I GUESS MY QUESTION IS, ARE THOSE ONE TIME EXPENSES FOR TECH UPGRADES OR THOSE GOING TO BE EXPECTED TO BE FOR THOSE? YEAH, THAT'S 
          [01:15:01]
BASICALLY THAT'S THE UPDATED ALLOCATION FOR THE USE OF TECHNOLOGY SUPPORTED TECHNOLOGY. 
          AND, AND WE CAN GET INTO MORE DETAIL ABOUT HOW WE DO THAT ALLOCATION MODEL BECAUSE IT'S, IT'S, THEY LOOK AT THE NUMBER OF USERS ON THE SYSTEM, THE TYPE, THE SOFTWARE THAT'S BEING USED IN EACH ONE OF THE AREAS. SO FOR EXAMPLE, THE ALLOCATION, TECHNOLOGY ALLOCATION AND PUBLIC SAFETY, YOU HAVE TO THINK ABOUT CAD SOFTWARE, OTHER SOFTWARE THAT THEY'RE USING IN PUBLIC SAFETY COMPARED TO OTHER OTHER DEPARTMENTS. AND SO THAT ALLOCATION IS BASED ON THAT WHOLE METHODOLOGY. AND IT'S UPDATED, UPDATED EVERY COUPLE YEARS JUST TO MAKE SURE IT'S AS ACCURATE AS POSSIBLE. BUT THAT'S AN ONGOING ALLOCATION THAT OCCURS EVERY YEAR. THE JOINT SERVICE ALLOCATION HAS BEEN HAPPENING FOR IT'S IT'S ALWAYS HAPPENED. THE SHIFT IS WE'VE MOVED THOSE FROM BASICALLY BEING AGGREGATED. THE ONE AGGREGATED TOGETHER IS ONE EXPENSE IN THE GENERAL FUND AND SPLIT THEM OUT OVER ALL THE DEPARTMENTS. SO THAT'S. THOSE ARE GOING TO HAPPEN EVERY YEAR AS WELL. THAT'S JUST MORE OF HOW WE REPRESENT THOSE COSTS IN THE FUND, NOT NECESSARILY A LARGE INCREASE IN THAT, IF THAT MAKES SENSE. AND THEN AND THEN WE ALSO LOOK AT FACILITY ALLOCATIONS. SO THAT'S JOINT AND THAT'S IT'S GOING TO BE BASED ON LIKE FIRES, THE FIRE LIKE FIRE. AS AN EXAMPLE, WHEN WE ADD STATION EIGHT, WHEN THAT'S CONSTRUCTED, THE ALLOCATION FOR FROM FACILITIES WILL GO UP. BECAUSE PART OF THE WAY WE DO THAT METHODOLOGY IS BASED ON THE AMOUNT OF SPACE THAT EACH ONE OF THOSE, EACH ONE OF THE DEPARTMENTS HAS, AND HOW MUCH IS BEING MAINTAINED BY BY FACILITY. SAME THING WHEN WE HAVE A PLAN FOR EXPANSION OR A NEW BASICALLY DEAL WITH GROWTH IN THE WATER UTILITY AND FACILITY. WE HAVE A FACILITY PLAN FOR THE WATER UTILITY AND FACILITY PLAN FOR THE ELECTRIC UTILITY. AND ONCE WE ADD THOSE THAT SQUARE FOOTAGE, THEN THAT ALLOCATION WILL GO UP IN THOSE FOR THE FACILITY ALLOCATION, IF THAT MAKES SENSE. SO I KNOW THEY LOOK HIGH, AND THAT'S WHY WE'RE TRYING TO HIGHLIGHT HOW WE CHANGE THE METHODOLOGY. BUT THE INTENT BEHIND THE CHANGING THE METHODOLOGY IS REALLY TO HAVE A MORE ACCURATE PICTURE FOR YOU ALL TO SAY, OH, WELL, WHAT DOES IT TAKE TO REALLY RUN THE LIBRARY? WELL, WE NEED TO INCLUDE THOSE ALLOCATIONS IN THE IN THE ACTUAL LIBRARY COST CENTER SO THAT, SO THAT YOU CAN SEE HOW YOU KNOW THE FULL, ALL THE FULL AS MUCH AS POSSIBLE, THE FULLY EMBEDDED COST OF RUNNING THE LIBRARY. ANY OTHER QUESTIONS OR THINGS WE NEED TO DISCUSS FURTHER? HAPPY TO DO THAT. DAVID. JUST ONE QUESTION ON KIND OF ALSO ON THE PARKS AND REC AND LIBRARY STANDPOINT, I KNOW THAT WE INCREASED FEES, ESPECIALLY IN THAT NONRESIDENT VERSUS RESIDENT AND ALSO SOME ROOM RENTAL, I THINK, FEES WITHIN THE LIBRARY. I'M ASSUMING THAT THAT IS THERE'S ALSO AN INCREASE IN THOSE REVENUES OR IS IT OR HAS THERE BEEN BASED ON, YOU KNOW, MAYBE NONRESIDENTS HAVE DECIDED. 
          SALLY. SO, SALLY, LET ME ANSWER AT A HIGH LEVEL AND SEE IF YOU WANT TO GET MORE DETAIL. SO YES, WE DID INCREASE THOSE FEES LAST YEAR AND WE, WE ACTUALLY DID SEE A LOWERING OF THE NUMBER OF PEOPLE SIGNING UP. SO, SO, YOU KNOW, PART PART OF THAT IS COST RECOVERY. PART OF IT'S MANAGING THE DEMAND ON SERVICES, YOU KNOW, RIGHT. SO THERE'S KIND OF A, BOTH OF THOSE COMPONENTS ON THE PARK SIDE, YOU MAY RECALL THAT WE CHANGED SOME POLICIES ON PARKS. WE'VE HAD A NONRESIDENT RATE. WE'LL CONTINUE TO LOOK AT THAT. WE'RE ACTUALLY WORKING THROUGH THE COST RECOVERY STUDY RIGHT NOW, OR THAT WILL BRING BACK TO YOU ALL ON PARKS AND REC. SO THERE MAY BE MORE FEE DISCUSSIONS, KIND OF AS WE HIT EARLY FALL AND CAN BE CONSIDERED MID-YEAR. 
          THE. BUT YOU'LL RECALL, WE ALSO WE LOOKED AT LIKE, FOR EXAMPLE, THE BASKETBALL BASKETBALL WAS A ALWAYS, ALWAYS, YOU KNOW, ALWAYS SOLD OUT. AND SO WE GAVE PREFERENCES FROM TIMING TO ALLOW FOR RESIDENTS TO USE THAT, YOU KNOW, AND, AND SO WE ACTUALLY WERE, WE WERE NOT CURIOUS, BUT WATCHING THAT CLOSELY TO SEE IF WE HAD MORE RESIDENTS SIGN UP THAN NONRESIDENTS, WOULD THAT CHANGE OUR REVENUE PICTURE? AND IT'S BEEN OKAY, WE'VE, WE'VE SEEN IT FILL UP, FILL UP. SO WE HAVEN'T HAD A PROBLEM WITH ANYTHING FILLING UP. BUT BUT THAT REVENUE PICTURE HAS BEEN. ALL RIGHT. OKAY. AND I THINK THAT THAT'S, I MEAN, I'M STILL, YOU KNOW, I THINK IT WAS STILL A GOOD MOVE TO MOVE TO CHANGES IN THOSE RESIDENT NONRESIDENT FEES. 
          I THINK WE NEED MORE THAN A YEAR TO JUST LOOK AT WHAT THAT DATA LOOKS LIKE. BECAUSE ALSO, I THINK THERE'S ALSO, YOU KNOW, ECONOMY SHIFTS AND THINGS HAPPENING RIGHT NOW IN THE WORLD THAT ARE MAYBE ALSO CAUSING PEOPLE TO MAKE DIFFERENT CHOICES IN THEIR LIVES, BUT JUST WANTED TO SEE KIND OF WHAT WHERE THAT HAD PLAYED OUT. THANKS. ALL RIGHT. 
          I'VE GOT A QUESTION TOO, SINCE EVERYBODY'S TALKING. THE AND THE PUBLIC SAFETY SIDE, THE EMS SUBSTATION, IS THAT JUST FITTING OUT A PORTION OF EXISTING FIRE FIREHOUSE OR 
          [01:20:04]
SOMETHING? BECAUSE THAT'S LIKE, THAT'S VERY LITTLE TALK ABOUT THAT. THAT'S NOT VERY MANY DOLLARS. AND NO, IT'S IT'S A LEASE. IT'S A LEASE, OKAY. IT'S JUST A LEASE. JUST A LEASE FOR SPACE. OKAY. ALL RIGHT. AND A NOMINAL AMOUNT OF UPFIT, WHATEVER THAT LEASE SPACE IS, JUST SOMEWHERE THEY CAN RESPOND FROM DURING PEAK DEMAND HOURS. ALL RIGHT. THANKS. YES, SIR. 
          YES. IT'S REALLY IT'S REALLY WORKING ON RESPONSE TIMES AND MAKING SURE AVAILABILITY. YOU RECALL THAT COUNCIL WE FUNDED THAT PEAK UNIT LAST YEAR. AND SO MAKING SURE THAT IT'S POSITIONED AS WELL AS POSSIBLE. SO THAT'S THAT'S THE PLAN ON THAT. OKAY. WE'LL GO AHEAD AND MOVE TO SOLID WASTE. THANKS, DAVID. ALL RIGHT. SOLID WASTE FUND. JUST SOME KEY THEMES THIS YEAR. STAFF PRESENTED TO YOU ALL AN UPDATED COST OF SERVICE STUDY AS PART OF THE FISCAL 2027 BUDGET DEVELOPMENT. THE COST OF SERVICE STUDY RECOMMENDED RATE INCREASES OF 5% FOR RESIDENTIAL CUSTOMERS AND 8% FOR COMMERCIAL. THE RESULT OF IMPLEMENTING THESE RATE INCREASES WILL BE A FULLY FUNDED PILOT AND FULLY FUNDED FRANCHISE FEE COMING FROM THE SOLID WASTE FUND, AS WELL AS CONTINUING TO GROW INTO DEBT SERVICE AND CONTINGENCY RESERVE REQUIREMENTS OF THE FUND, WHICH SHOULD BE FULLY FUNDED BY 2031. THE OTHER BIG FOCUS FOR THE SOLID WASTE TEAM THIS YEAR IS THE DOWNTOWN, SO CONTINUING TO PROCEED WITH OUR BLOCK 40 OR THE DUMPSTER ENCLOSURE BEHIND CITY POST, AS WELL AS HOW WE'RE GOING TO HANDLE DOWNTOWN TRASH AS THINGS BECOME MORE DENSE AND THE AREAS WHERE WE HAVE DUMPSTERS TODAY GO AWAY TO BE PARKING GARAGES OR NEW INFILL DEVELOPMENT, AND THEN CONTINUING TO SUPPORT THE VARIOUS COMMUNITY EVENTS, EITHER HOUSEHOLD HAZARDOUS WASTE, COMMUNITY COLLECTION OR THE BATTERY BLITZ PROGRAM. SO LOOKING AT THIS FISCAL YEAR, THROUGH A COMBINATION OF RATE INCREASES AND GROWTH, REVENUES ARE PROJECTED TO BE ABOUT 1.1 MILLION OVER BUDGET. AND THEN THE EXPENSES ARE PROJECTED TO BE ABOUT 1.3% OVER BUDGET, LARGELY DUE TO 350 315,000 INCREASE IN SANITATION SERVICES AND SANITATION SERVICES. THAT'S A LINE ITEM. WE PAY THE TDS CONTRACT OUT OF. SO AS AS TDS, AS OUR EXPENSE TO TDS INCREASES OUR REVENUES, THERE'S A CORRESPONDING REVENUE RIGHT. THEN ON THE NON-OPERATING SIDE, WE HAVE A PROJECTED INCREASE OF ABOUT 83,000 OVER BUDGET AND MISCELLANEOUS REVENUE. TDS HAS A COUPLE OF THINGS THAT THEY PAY US FOR. WE GET A PORTION OF THEIR COMPACTOR REVENUES, AND THEN THEY RUN GARDNERVILLE OUT OF THE TRANSFER STATION, AND WE GET SOME REVENUES FROM THAT, AND THEN NON-OPERATING EXPENSES PROJECTED TO COME IN AT BUDGET, PAYING THE DEBT SERVICE ON THE TRANSFER STATION, AND THEN THE PILOT LOOKING AT 2027 BECAUSE OF THE RATE INCREASES AND GROWTH, REVENUES ARE PROJECTED TO INCREASE 1.6 MILLION, OR 8% OVER THE 26 PROJECTIONS. AND THEN THE EXPENSES INCREASE OF 17.7 MILLION. PART OF THAT IS THE INCREASE IN COST FOR THE TDS CONTRACT. THE JOINT SERVICE ALLOCATION THAT WE SPOKE ABOUT EARLIER, AND THEN THE FRANCHISE FEE EXPENSE IN 2027. 
          NONOPERATING REVENUES. WE'RE CORRECTING WHERE FRANCHISE FEES ARE RECORDED. SO HISTORICALLY THEY WERE RECORDED IN NON-OPERATING. SO THEY'RE THEY'RE NOW GOING TO BE RECORDED AND OPERATING. AND THEN NONOPERATING EXPENSES, CONTINUING THE DEBT SERVICE PAYMENT PILOT AND THE TRANSFER OUT TO GCP TO COVER THIS IS COVERING SOLID WASTE PORTION OF IT FOR ETC. TO PAY FOR THE CUSTOMER SERVICE CENTER. A FEW SERVICE LEVEL REQUESTS IN SOLID WASTE ONE 2000 FOR THE STORMWATER POLLUTION PREVENTION PLAN. PERIODICALLY, WE HAVE TO UPDATE THAT PLAN TO BE COMPLIANT WITH TCDC REQUIREMENTS. THE TDS CONTRACT INCREASE AS THEY COLLECT MORE CUSTOMERS AND HAVE DIFFERENT TYPES OF CUSTOMERS. THERE'S A CORRESPONDING INCREASE RIGHT FOR US TO PAY TDS. AND THEN I MENTIONED IN THE GENERAL FUND, PUBLIC WORKS IS GETTING AN ADMINISTRATIVE ASSISTANT. THIS IS SOLID WASTE. ONE THIRD ALLOCATION OF THE ADMINISTRATIVE ASSISTANT THAT HAPPY TO ANSWER ANY QUESTIONS OR MOVE ON TO STORMWATER. JACK, ARE WE ON YEAR FIVE OF THE TDS CONTRACT OF TEN? WAS IT A. IT'S A TEN YEAR CONTRACT. IT ENDS IN 2031, RIGHT. AND THEN I THINK IS APRIL HERE. DO YOU 20 IT ENDS IN 2030 AND IT STARTED IN 2020. IS THAT RIGHT? YEAH. SURE. YEAH. I'LL CONFIRM THOSE EXACT 
          [01:25:04]
NUMBERS. I THINK WE WERE 4 OR 5 YEAR. OKAY. YEAH, YEAH. MORE THAN HALFWAY THROUGH. OKAY. 
          THANKS. ALL RIGHT. I'LL MOVE ON TO OUR NEXT SPECIAL REVENUE FUND, THE STORMWATER FUND. I KNOW YOU ALL HAVE VISITED ABOUT THIS RECENTLY. SO BIG, BIG THEMES IN STORMWATER IS COMPLYING WITH OUR MS4 REQUIREMENTS FROM THE STATE AND EFFECTIVELY MANAGING THE STORMWATER IN GEORGETOWN. WE CONDUCTED A COST OF SERVICE STUDY THAT INCLUDES BOTH THE OPERATING AND CAPITAL COSTS NEEDED TO ACHIEVE THE GOALS OF THE STORMWATER MANAGEMENT PLAN, AND THEN CONTINUING TO INVEST IN INFRASTRUCTURE AND BETTER MANAGE RAINWATER RUNOFF TO PREVENT FLOODING AND WATER POLLUTION, STORMWATER POLLUTION. SO REVENUE VARIANCES THE STORMWATER FEE IS A MONTHLY CHARGE BILLED BASED ON IMPERVIOUS COVER. SO FOR RESIDENTS IT'S $6.50. AND THEN THERE'S A MULTIPLIER FOR NONRESIDENTIAL BASED ON THAT 650. THIS FEE WAS LAST ADJUSTED IN 2015. WE. THIS BUDGET PROPOSES INCREASING THE FEE BY $1.50 TO $8 PER MONTH PER RESIDENTIAL. AND THEN THAT MULTIPLIER FOR NON RESIDENTIAL. 
          THIS WILL RESULT IN A $1.8 MILLION INCREASE IN OPERATING REVENUE COMBINED WITH WITH GROWTH, GROWTH OF IMPERVIOUS COVER AND RESIDENTIAL GROWTH. SHORT AND SWEET FISCAL 26 EXPECTED TO END AT BUDGET FISCAL 27 16.5% INCREASE, PRIMARILY DRIVEN BY PILOT. TO ALIGN THE RATE INCREASES WITH THE. THE INCREASED REVENUE. QUITE A FEW SERVICE REQUESTS IN STORMWATER. AGAIN, THIS IS ALL PART OF OUR MASTER PLANNING EFFORTS AND WHAT'S. WHAT'S DRIVING THE NEED FOR RATE INCREASE. SO THE FIRST THING IS A STORMWATER INSPECTOR. SO THIS IS HELPING INCREASE OUR INSPECTION OF PRIVATE INFRASTRUCTURE. YOU KNOW, IF YOU IF YOU OWN STORMWATER DEVICE OR STORMWATER INFRASTRUCTURE, YOU HAVE CERTAIN RESPONSIBILITIES TO UPKEEP THAT AND MAKING SURE WE'RE INSPECTING AND INFORMING PEOPLE OF THEIR REQUIREMENTS. HERE'S THE LAST THIRD OF THE ADMINISTRATIVE ASSISTANT FOR PUBLIC WORKS PAID OUT OF STORMWATER STORMWATER DEVICE MAINTENANCE. THERE'S A WHOLE BUNCH OF NEW DEVICES COMING ON THAT REQUIRE MORE INTENSE MAINTENANCE THAN YOUR TRADITIONAL STORMWATER RETENTION OR DETENTION PONDS. SO RECOGNIZING THE COST OF ACTUALLY MAINTAINING THOSE APPROPRIATELY INCREASED DISPOSAL AS AS WE COLLECT DEBRIS FROM THOSE STORMWATER DEVICES OR STREET SWEEPING, WE HAVE AN INCREASED COST TO DISPOSE OF THOSE AT THE TRANSFER STATION. WE'RE ALSO BRINGING ON A LIGHT EQUIPMENT CREW, BASICALLY OF THREE LIGHT EQUIPMENT OPERATORS, TO HELP WITH ONGOING MAINTENANCE OF THE STORMWATER INFRASTRUCTURE, GETTING AN ON CALL VEHICLE. SO THERE'S LIMITED VEHICLES IN STORMWATER. SO MAKING SURE THERE'S AMPLE COVERAGE OF VEHICLES FOR WHEN PEOPLE ARE ON CALL. AND THEN ATLAS 14, I THINK YOU ALL HAVE HAD A WORKSHOP ON THIS. THIS IS THE UPDATED FLOODPLAIN MAPS. SO THIS IS GEORGETOWN'S PORTION OF THE COUNTY'S EFFORT TO UPDATE THE FLOODPLAIN MAPS IN WILLIAMSON COUNTY. AND THEN STORMWATER CIP. JACK, CAN YOU GO BACK TO THAT REAL QUICK? YES OF COURSE. SO MY UNDERSTANDING IS THE COUNTY OFFICIALLY ADOPTED LAST MONTH. SO WHAT ALL DO WE NEED TO DO ON THAT AND WHAT ADDITIONAL COSTS ARE GOING TO BE ASSOCIATED INTERNALLY WITH UPDATING THAT? I THINK I'M PHONING A FRIEND HERE. WAYNE. 
          YOU GOT IT. OR SO NICK'S GOT IT. THANKS. YEAH. SO THE WHAT THEY ADOPTED WAS THE DATA THAT WAS COLLECTED, THE ORIGINAL ATLAS 14 DATA THAT WAS COLLECTED. THERE'S NEW DATA. THERE'S UPDATED DATA THAT'S BEING COLLECTED NOW, WHICH IS THE WHICH IS THE ADDITIONAL COST THAT'S BEING BORN. SO IT'S, IT'S BASICALLY A NEW SET OF, OF DATA THAT'S GOING TO BE THE MOST UP TO DATE. SO WE'RE GOING TO WAIT TO UPDATE UNTIL WE GET THE NEW DATA. LIKE OUR, WHEN WE OFFICIALLY ADOPT, WE'RE GOING TO BRING COUNCIL THE ADOPTION IN EITHER JULY OR AUGUST. OKAY. 
          AND THEN ONCE THIS NEW DATA IS UPDATED, IT'LL JUST BE THE JUST UPDATE. IT'LL BE THE LATEST DATA THAT WE UTILIZE. OKAY. THANKS. ALL RIGHT THEN CIP, CURB AND GUTTER. THAT'S AN ITEM WE'VE HISTORICALLY FUNDED OUT OF STORMWATER. SO THAT REPLACING CURB AND GUTTER THROUGHOUT TOWN WHERE IT DOESN'T EXIST OR IS INADEQUATE. THERE'S A SMALL PROJECT OUT ON HAVEN LANE TO ADDRESS SOME LOCALIZED FLOODING CONCERNS. AND THEN THE BIG SPEND IS THE 
          [01:30:04]
PRELIMINARY ENGINEERING REPORT ASSOCIATED WITH SOME OF THE LARGER CAPITAL PROJECTS CONTEMPLATED IN THE STORMWATER MASTER PLAN, AND THEN SOME MONEY FOR DOING CCTV AND STORMWATER DRAINAGE INFRASTRUCTURE, AND THEN NEW VEHICLES AND STORMWATER. JACK, I'VE GOT A QUESTION ON THAT. AND IT'S NOT BUDGET NECESSARILY. IT'S RELATED FOR THE CURB AND GUTTER. DO WE REPLACE EXISTING DAMAGED CURB AND GUTTER OUT OF THIS FUND AS WELL, OR IS THAT CAPTURED MORE? AND THE REASON I ASK IS, IS WHEN WE DID OUR LAST SECTION OF REPAVING, YOU KNOW, THE CUTTER PROCESS OR CUTLER PROCESS, I HAD LOTS OF PEOPLE SAY, HEY, YOU KNOW, IT'S GREAT THAT MY MY STREETS ARE REPAVED. IT LOOKS GREAT, BUT THERE'S A GIANT CHUNK OF CURB AND GUTTER THAT'S CRACKED AND DAMAGED THAT YOU PAVED UP NEXT TO YOU. I DON'T KNOW IF THAT'S CAPTURED IN HERE OR IF IT'S KIND OF A CASE BY CASE BASIS. SO TYPICALLY, LIKE WHEN WE DO STREET MAINTENANCE, THE CURB AND GUTTER FOR THAT, IF NEW CURBS OR CURBS NEED TO BE ADDED, IT'S PAID FOR OUT OF THIS. IF YOU HAVE SPECIFIC LOCALIZED MAINTENANCE CONCERNS, I MEAN, WE CAN TALK OFFLINE AND ADDRESS THOSE SPECIFICALLY. OKAY. YEAH, THAT THAT ANSWERS MY QUESTION ENOUGH. ALL RIGHT. THANKS. ALL RIGHT. I'LL TURN IT OVER TO YOU. ARE WE GOING TO YEAH. READY? GO. 
          ALL RIGHT. WE'LL GO AHEAD AND GET STARTED UP AGAIN. AND I WILL DO MY BEST TO NOT DO ANY DAD JOKE PUNS DURING ELECTRIC PRESENTATION. IT'S HARD FOR ME AS. YES. OKAY. ALL RIGHT. 
          MOVING RIGHT ALONG. OKAY. I NEED A PHOTO OF THAT. OF THAT PICTURE OF THE FACE THAT LEE MADE AT ME DURING THAT RIGHT THERE. THAT'D BE HELPFUL FOR THE FUTURE. ALL RIGHT, SO THE ELECTRIC FUND, THE KEY THEMES FOR THE ELECTRIC FUND IS JUST RECOGNIZING THAT THE COST OF SERVICE STUDY THAT WAS DONE AS PART OF THE 2027 BUDGET DEVELOPMENT SHOWED NO PROPOSED RATE INCREASES WERE NEEDED. AND WE MEET ALL OF OUR REQUIREMENTS AND FINANCIAL METRICS. THE BUDGET DOES SEEM LOW GROWTH ASSUMPTIONS FOR RESIDENTIAL, COMMERCIAL AND INDUSTRIAL CLASSES AND AND PREDOMINANTLY CONTINUED SEEING CONTINUED ADDITIONAL INDUSTRIAL CUSTOMERS THAT HAVE VERY LARGE LOADS, LARGE GROWTH. SO SO WE SEE THAT THE IMPACT OF CUSTOMER GROWTH FOR THE VERY LARGE CUSTOMER CATEGORY, BOTH INCREASING REVENUE DEVELOPER CONTRIBUTIONS AND CIP EXPENSE. IT'S ALSO THEN TRANSLATES IN ADDITIONAL EXPENSE FOR US ON THE OPERATING SIDE, WITH SEVERAL PROPOSED POSITIONS THAT WE'LL TALK ABOUT. 11 OF THOSE PROPOSED POSITIONS REALLY FOCUSED IN ELECTRICAL ENGINEERING AND OPERATIONS. AGAIN, RESPONDING TO THAT LOW GROWTH THAT WE'RE SEEING WITH LARGE, VERY LARGE, LARGE LOAD CUSTOMERS AS WELL AS CUSTOMER GROWTH. AND THEN WE HAVE ADDITIONAL SUPPLIES NEEDED FOR ENHANCED TECHNOLOGY AND SECURITY OF OUR ELECTRIC SYSTEM. AND IN ORDER, OBVIOUSLY, THE THE PRIMARY, YOU KNOW, PURPOSE IS TO BE A SAFE, RELIABLE ELECTRIC UTILITY. SO, SO MAINTAINING THOSE AT THE FOREFRONT. 2026, OUR OPERATING REVENUES ARE PROJECTED TO END THE YEAR $42 MILLION OVER BUDGET. THIS IS PRIMARILY DUE TO DEVELOPER CONTRIBUTIONS. WE'RE ON TARGET ON ELECTRIC SALES. IT'S AFTER WE AMENDED THE BUDGET MID-YEAR TO REFLECT JUST THE LARGE SUM OF THE LARGE LOADS COMING ON LATER THAN ANTICIPATED. DEVELOPER CONTRIBUTIONS ARE FORECAST TO BE AT 64 MILLION. JUST TO GIVE YOU A PERSPECTIVE, THEIR BUDGET, THEY WERE ORIGINALLY BUDGETED AT 22 MILLION AND FEES TOTAL 4.4 MILLION. THAT INCLUDES ABOUT 1.5 MILLION OF SELLING RENEWABLE ENERGY CREDITS FOR 2027. OPERATING REVENUES ARE BUDGETED AT 181 MILLION, PRIMARILY DRIVEN BY DEVELOPER CONTRIBUTIONS, AS WELL AS INCREASES IN IN ELECTRIC SALES, WHICH YOU SEE HERE PROJECTED AT 144,000,000 IN 22, 21% INCREASE OVER 2026 PROJECTIONS, WE ARE BUDGETING INCREASES TO OUR NATIVE LOAD, BUT ALSO INCREASED FROM VERY LARGE COMMERCIAL CUSTOMERS AND ESTIMATED THAT COMMERCIAL CUSTOMERS, THOSE LARGE LOADS WILL GENERATE 166MW OF ADDITIONAL ENERGY OVER THIS NEXT YEAR, AND THOSE INCLUDE SOME OF THE COMPANIES THAT HAVE BEEN ANNOUNCED OVER THE LAST YEAR, YEAR AND A HALF, WHICH IS ZT SYSTEMS, COMPAL AND PEGATRON. 
          WE HAVE DEVELOPMENT DEVELOPER CONTRIBUTIONS BUDGETED AT 27 MILLION, DRIVEN BY THE RAMP SCHEDULES OF THE LARGE LOAD CUSTOMERS. YOU CAN SEE WHAT WE'RE BUDGETING ON. FEES. I CONTINUE TO MAINTAIN THE RENEWABLE ENERGY CREDIT SALES WILL BE ABOUT FLAT. AND THEN WE ALSO ARE PROGRAMING. THE EXPENSE IS PROGRAMED INTO THE ELECTRIC UTILITY FOR STREET LIGHT MAINTENANCE, BUT THE ACTUAL PROGRAM IS BILLED AND AND BILLED THROUGH THROUGH THROUGH THE GENERAL FUND, THROUGH UTILITY BILLING, EXCUSE ME, AND THROUGH THE GENERAL 
          [01:35:05]
FUND. SO OPERATING REVENUES, WE DON'T ANTICIPATE ANY RATE CHANGES ON ENERGY EFFICIENT AND EFFICIENCY. AND CONSERVATION PROGRAMS DO OFFER ALL THESE DIFFERENT SERVICES, BUT NO FEE INCREASES ASSOCIATED WITH THAT. AND THEN NOW WHAT I'LL DO IS I'LL GO THROUGH KIND OF THE EXPENSE CATEGORIES AND DIFFERENT SEVERAL DIFFERENT AREAS WITH THE STARTING WITH ELECTRIC TECHNOLOGY. BUT OVERALL, IF YOU LOOK AT OVERALL EXPENSES FOR 2026, AS WE'RE PROJECTING YEAR END, WE'RE ENDING UNDER 1% OVER BUDGET. SO REALLY VERY CLOSE TO BEING ON BUDGET OVERALL FOR THE ELECTRIC UTILITY, FOR ALL EXPENSES FOR 2026, FOR ELECTRIC TECHNOLOGY, THEY'RE PROJECTED TO BE 9% OVER BUDGET. THIS IS MOSTLY DUE TO MOVEMENT BETWEEN EMPLOYEES AND COST CENTERS. WE'VE ALSO DEVELOPED AN ADDITIONAL COST CENTER CALLED ENGINEERING TECHNOLOGY, AND WE IMPLEMENTED THAT MIDYEAR. SO YOU'LL SEE SOME OF THE COST SHIFTING BETWEEN THE DIFFERENT COST CENTERS IN ON THE EXPENSE SIDE. AND THEN IT'S ALSO THIS AREA IS RESPONSIBLE FOR TECHNOLOGY APPLICATIONS LIKE ENGINEERING ANALYSIS, OUTAGE MANAGEMENT, THE A I AND THE MDM MANAGEMENT SYSTEM. OPERATING EXPENSES AND ELECTRIC TECHNOLOGY FOR 2027 PROJECTED TO INCREASE BY 1.6 MILLION OVER OVER THE 26 BUDGET. THAT'S THE FULL YEAR IMPACT OF PERSONNEL AND ENGINEERING TECHNOLOGY. WE HAVE THE TECHNOLOGY ALLOCATION. SO THAT'S WHAT WE'RE TALKING ABOUT EARLIER. AND AS IT WAS IMPACTING THE GENERAL FUND, THIS ALSO, YOU SEE TECHNOLOGY AND FACILITY AND JOINT SERVICE ALLOCATIONS IMPACTING THESE OTHER FUNDS. WE ALSO HAVE INCREASED DUE TO MOVEMENT OF EMPLOYEES BETWEEN COST CENTERS. 
          THERE ARE SERVICE LEVEL REQUESTS UNDER ELECTRIC TECHNOLOGY. THE THREE INCLUDE. 
          THE FIRST IS A DATA PLANS FOR NEW IEDS. THOSE ARE INTELLIGENT ELECTRIC DEVICES. THEY'RE HELPING MAINTAIN THE SAFETY AND SECURITY OF OUR OF OUR OF OUR SYSTEM. AND SO THESE ARE DATA PLANS ASSOCIATED WITH THAT. WE ALSO HAVE A SUBSTATION AUTOMATION AND PROTECTION SUPERVISOR. THIS IS REALLY FOCUSED ON MANAGING LARGE, LARGE LOADS AND THE ENERGY QUALITY AND MANAGEMENT ASSOCIATED WITH THAT. WE HAVE ONE POSITION, ADDITIONAL POSITION IN ELECTRIC CONTROL CENTER. THIS WOULD BE A SENIOR UTILITY SYSTEM OPERATOR. THIS ALLOWS ALLOWS US TO HAVE TWO PEOPLE PER SHIFT TO BE IN THE CONTROL CENTER. FOR A SAFETY AND RESILIENCY STANDPOINT, AS WE MOVE TO ELECTRIC ADMINISTRATION FOR FY 26, WE HAVE PROJECTED INCREASE OF 600,000 OVER BUDGET FROM 2025. THERE'S VACANCY SAVINGS THAT WE SAW THROUGHOUT THE YEAR, BUT WE ALSO HAVE HAD INCREASES IN LEGAL SERVICES, WHICH THOSE ARE PREDOMINANTLY PASS THROUGH COSTS. AS WE'RE DEVELOPING ESA'S EMERGENCY ENERGY SERVICES AGREEMENT, WE ALSO HAVE INCREASES DUE TO MOVEMENT OF EMPLOYEES BETWEEN COST CENTERS. 
          AND THEN WE HAVE THE ALLOCATIONS OF FUNDING CHANGES IN THE BUDGET IN 2027, PROJECTED TO BE OVER BUDGET FROM OR INCREASED BUDGET FROM 2026. YOU CAN SEE FRANCHISE FEE EXPENSE THAT GOES INTO THE GENERAL FUND JOINT SERVICE ALLOCATION INCREASE. WE HAVE A DECREASE IN THE GENERAL FUND ALLOCATION. SO AGAIN THESE CAN WORK BOTH WAYS DEPENDING UPON UPDATED METHODOLOGIES WE LOOK AT. AND THEN WE ALSO HAVE A VACANCY FACTOR THAT WE PROGRAM INTO THE ELECTRIC BUDGET. SO ASSUMING THAT WE'LL HAVE VACANCIES THROUGHOUT THE YEAR AND FACTOR THAT IN, WE ALSO DO THE SAME THING IN OUR OTHER FUNDS. SO IT HAPPENS IN THE GENERAL FUND AND WATER FUND. AND SO THAT VACANCY FACTOR IS BUDGETED AT 5%, JUST ASSUMING SOME ATTRITION THROUGHOUT THE YEAR, SERVICE LEVEL REQUESTS AND ELECTRIC ADMINISTRATION. 
          THERE'S FOUR REQUESTS HERE. FIRST IS CONSULTING BUDGET INCREASES. THIS IS PRIMARILY DUE TO. SORRY ABOUT THAT. THIS IS PRIMARILY DUE TO CONTRACTS WITH CONSULTANTS WE'RE USING FOR BRINGING LARGE LOADS ON. THIS IS A PASS THROUGH COST THAT WE HAVE. WE ALSO HAVE A. 
          PROPOSING AN ENERGY MARKET PORTFOLIO ANALYST. THIS IS AGAIN ASSOCIATED WITH LARGE LOAD MANAGEMENT. THE. WE HAVE LEGAL SERVICES INCREASING AT 120,000. AND THIS IS A PASS THROUGH COST THAT WE CHARGE FOR TO TO ENTITIES THAT ARE. WE'RE WORKING ON ENERGY SERVICES AGREEMENTS. AND THEN THIS LAST PORTION IS A IS A PORTION OF A POSITION THAT'S ACTUALLY PRIMARILY FUNDED IN THE GENERAL FUND, THIS PROJECT MANAGER. THEY'RE GOING TO FUND 13,000 OF THE PROJECT MANAGER POSITION. AND THAT IS BECAUSE OF THE WORK FACILITIES WORK THAT THAT THEY WILL BE DOING TO WORK ON THE NEW. AND YOU'LL SEE IN THE CIP BUDGET PLANNING FOR A NEW ELECTRIC FACILITY BASED ON GROWTH AND KIND OF OUTSTRIPPING THE SPACE THAT WE HAVE IN THE CURRENT FACILITY. AND SO THIS PROJECT MANAGER IS FUNDED BY MULTIPLE FUNDS, BUT PART OF THEIR DUTIES WILL BE TO WORK ON THE FACILITY PLANS THEY'RE IN DEVELOPING THAT COMPLEX. UNDER 
          [01:40:05]
ELECTRIC MANAGEMENT RESOURCES, ENERGY RESOURCES. THIS IS A BIG A BIG PORTION OF BUDGET BECAUSE THIS IS WHERE PURCHASED POWER EXPENSES ARE. SO PURCHASE POWER EXPENSE IS PROJECTED TO BE ALIGNED WITH THE 2026 BUDGET. SO WE'RE PROJECTING IN THE YEAR IT'S 11% INCREASE OVERALL FROM FY 25. EXPENSES INCREASED 22% OVER OVER PROJECTIONS FOR 2027. EXCUSE ME, FOR 2027, WE PROJECT FOR PURCHASE POWER TO INCREASE 22% OVER 2026. THIS IS DRIVEN MOSTLY BY LARGE LOAD AS WELL AS ORGANIC GROWTH. AND IT ALSO ANTICIPATES NEW CUSTOMERS COMING ONLINE IN 2027. BUT THAT IS ALSO, YOU KNOW, WE'RE HAVING A CERTAIN AMOUNT OF. TAKING A CONSERVATIVE APPROACH ON THOSE ESTIMATES, MAKING SURE THAT WE'RE NOT BEING TOO AGGRESSIVE WITH WHAT WE ANTICIPATE FROM REVENUE STANDPOINT, AS WELL CORRESPONDING EXPENSES. OPERATING EXPENSES. THIS IS FOR ELECTRIC T AND D SERVICES AND ELECTRICAL ENGINEERING. THIS IS WHERE SEVERAL POSITIONS ARE BEING PROPOSED. AND THIS IS ABOUT MAINTAINING AND MANAGING OUR PLANT AND GROWING OUR INFRASTRUCTURE BASED ON LOW GROWTH THAT WE'RE SEEING IN 2026. WE HAVE OPERATING EXPENSES PROJECTED THE YEAR 2,012% UNDER BUDGET. SO WE HAVE VACANCY SAVINGS AS WELL AS THERE IS SOME INCREASE IN LEGAL SERVICES. WE DO CAPITALIZE LABOR HERE. SO WE CAPITALIZE PART OF OUR LABOR FOR ELECTRIC PROJECTS THAT WE'RE DOING. IT'S A FINANCIAL MANAGEMENT TOOL. 
          WE'VE BEEN DOING THAT FOR A NUMBER OF YEARS NOW. ALSO PLAN TO DO THAT IN 2027 AS WELL. SEE A BUDGET INCREASE OVERALL OF 5% WITH CONTINUATION, CONTINUATION OF CAPITALIZATION OF LABOR IN 2027. THERE ARE SEVERAL SERVICE LEVEL REQUESTS THAT WE HAVE FOR THE ELECTRIC UTILITY. WE HAVE A BOOM TRUCK AS WELL AS AS WELL AS A BACKYARD MACHINE, A BUCKET MACHINE. SO THIS BASICALLY THE BOOM TRUCK IS TO GO ALONG WITH ADDITIONAL ELECTRIC CREW, WHICH YOU CAN SEE THE STAFFING HERE. 
          I WISH THE BOOM TRUCK DOES NOT COST $13,600. THE BOOM TRUCK TRUCK COSTS A LOT MORE THAN THAT. IT COSTS ABOUT $535,000. BUT OF THAT, 535 535 IS THE ONGOING MAINTENANCE EXPENSE OF THE BOOM TRUCK. SO THAT'S JUST THE MAINTENANCE EXPENSE OF THE BOOM TRUCK. SAME THING WITH THE BUCKET WITH THE BACKYARD MACHINE. THIS IS TO GET IN. WE DO HAVE AREAS IN OUR ELECTRIC UTILITY WHERE WE HAVE ELECTRIC SERVICE AND PEOPLE'S BACKYARDS AND NO WAY TO ACCESS EXCEPT FOR THROUGH A SIDE YARD. THIS IS A SPECIALIZED EQUIPMENT THAT LETS US GET INTO TIGHT SPACES. THE OVERALL COST OF THIS IS $336,000. AGAIN, THE MAINTENANCE COST ANNUAL MAINTENANCE COST IS ONGOING IS AROUND $9,600. THEN YOU HAVE THE ELECTRIC CREW LEADER, ELECTRIC JOURNEYMAN LINEMAN AND TWO ELECTRIC JOURNEYMAN LINEMEN THAT ARE PART OF A DRONE INSPECTION PROGRAM THAT ARE PART OF ADDING A NEW CREW TO OUR SYSTEM. THE REASON FOR THIS IS BASED ON JUST THE AMOUNT OF LOW GROWTH THAT WE'VE HAD. SO SYSTEM GROWTH, THIS MAINTENANCE GROWTH IS ALSO OUR ELECTRIC CREWS ARE PART OF IMPLEMENTING THE NEW NEW ELECTRIC LINES. AND SO IT CORRESPONDS WITH THAT GROWTH AS WELL. AND AND THE DRONE PROGRAM IS ACTUALLY A WAY MORE COST EFFECTIVE WAY TO BE ABLE TO USE DRONE AND INFRARED TECHNOLOGY TO REALLY LOOK FOR HOTSPOTS WITHIN OUR ELECTRIC LINES AND LOOK FOR OTHER CONFLICTS IN THE LINES FROM A MAINTENANCE STANDPOINT. SO AS WE INSPECT OUR LINES AND SHOULD CONTINUE TO ENHANCE OUR RELIABILITY AND RESILIENCY OF OUR SYSTEM, AND YOU CAN SEE HERE HOW WE'VE BUDGETED CAPITALIZATION OF LABOR. SO WE KNOW WE ANTICIPATE THAT THE ELECTRIC CREW WILL BE CAPITALIZED. WE ALSO HAVE CAPITALIZATION OF LABOR IN THE ELECTRIC ENGINEERING AREA. SO THESE POSITIONS ARE REALLY ANTICIPATED TO BE NEEDED BASED ON, AGAIN, THE GROWTH IN OUR SYSTEM MANAGING, DESIGNING OUR NEW NEW SYSTEM, NEW IMPROVEMENTS THAT ARE ASSOCIATED WITH LINE EXTENSIONS RELATED TO VERY LARGE LOADS AND NATIVE LOAD AND, AND JUST INCREASED WORKLOAD FROM PROJECT MANAGEMENT AND MAKING SURE WE'RE RESPONSIVE AND MEETING THE TIMELINES OF OUR CUSTOMERS AS WE HAVE NEW COMPANIES AND BUSINESSES COMING TO GEORGETOWN. 
          SO YOU HAVE AN ELECTRIC ENGINEERING ANALYST, AN ELECTRIC ENGINEERING MANAGER, AND THAT ACTUALLY IS TO HELP REESTABLISH THAT POSITION. BECAUSE WE HAD GROWTH IN THE DEPARTMENT, WE HAD THE PROMOTION OF ELECTRIC ENGINEERING MANAGER, MOVED INTO AN ENGINEERING AND OPERATIONS MANAGER, AND THEN THE ELECTRIC PROJECT COORDINATOR IS BECAUSE OF THE INCREASED NUMBER OF PROJECTS THAT WE'RE SEEING WITHIN THE WITHIN THE UTILITY. 
          AND THEN WE ALSO HAVE THE SENIOR ELECTRIC DISTRIBUTION DESIGNER, WHICH IS AGAIN, PART OF THAT GROWTH OF OUR SYSTEM AND MAKING SURE WE'RE RESPONSIVE TO KEEP UP WITH GROWTH. SO THIS IS THESE ARE KIND OF THE BULK OF THE PERSONNEL REQUESTS IN THIS AREA, BUT IT REALLY REPRESENTS THE INCREASED AMOUNT OF LOW GROWTH THAT WE'RE SEEING, AS WELL AS NEW PROJECTS COMING INTO OUR SYSTEM. WE ALSO HAVE CIP OF $75 MILLION, AGAIN, INCREASING 
          [01:45:01]
CAPACITY AND DISTRIBUTION SYSTEM RESILIENCY, RESPONDING TO CUSTOMER GROWTH, AND CUSTOMER AND COMMERCIAL GROWTH, AND THEN JUST BALANCING THE FUNDING THROUGH A COMBINATION OF CASH AND DEBT. SO THESE ITEMS AND SOME OF THAT EQUIPMENT THAT I WAS TALKING ABOUT, THE BOOM TRUCK AND THINGS OF THAT NATURE ARE COMING INTO TO SOME OF THESE LINE ITEMS, LIKE REPLACEMENT OF VEHICLES AS WELL AS THE NEW FLEET. WE ALSO HAVE THE LAND ACQUISITION FOR THE ELECTRIC UTILITY OPERATIONS CENTER. SO BUDGETED FOR THIS NEXT YEAR. 
          AND THEN UNDER CIP, THE REST OF THE CIP, YOU CAN SEE HERE, A LOT OF YOU CAN SEE HERE THE ELECTRIC OPERATIONS CENTER BUILDING. THIS IS THE FIRST PHASE FUNDING OF THAT DOING DESIGN WORK. AND THEN YOU HAVE A LOT OF SYSTEM IMPROVEMENTS. SO YOU CAN SEE SYSTEM IMPROVEMENTS, STARTING WITH SEXUALIZATION, GOING ALL THE WAY DOWN TO VOLTAGE CONVERSION. 
          SO THOSE ARE DIFFERENT CATEGORIES. YOU ALSO HAVE A NEW DEVELOPMENT WHICH IS THE LARGEST CATEGORY OF. AND THAT'S NEW DEVELOPMENT. THAT'S BASED ON NEW CUSTOMER GROWTH AND VERY LARGE LOAD GROWTH. AND SO THAT WILL BE HELP OFFSET BY DEVELOPER CONTRIBUTIONS THAT COME IN. SO YOU'LL RECALL A VERY LARGE DEVELOPER CONTRIBUTION. THAT'S WHERE THESE FUNDS ARE BEING EXPENDED. WE ALSO HAVE MAKE READY FOR POLE ATTACHMENTS. WE ALSO HAVE INFRASTRUCTURE RELOCATION FOR ROAD WIDENING SIMILAR TO OTHER UTILITIES. AS OUR ROADS WIDEN IN GEORGETOWN, UTILITIES HAVE TO BE MOVED FOR THAT. SO THIS IS THE COST ASSOCIATED WITH THAT. AND THEN WE ALSO HAVE NEW DEVELOPMENT FOR VERY LARGE LOADS AT THE VERY BOTTOM ESTIMATED $1 MILLION. SO THIS MAKES UP THE BULK OF OUR CIP $63 MILLION IN THESE AREAS. 
          WITH THAT, I'LL PAUSE. DANIEL'S ALSO HERE IN THE AUDIENCE TO HELP ANSWER QUESTIONS. IF WE'VE GOT QUESTIONS THAT ARE BEYOND MY CAPABILITY, MR. BUTLER HAS A COUPLE. SO I NOTICED THAT WE HAVE $64 MILLION OR SO IN DEVELOPER CONTRIBUTIONS. DO WE PAY DOES THE ELECTRIC FUND PAY PILOT AND FRANCHISE FEES ON THAT, OR IS THAT SOMETHING THAT IS KIND OF OFF LINE? THAT'S NOT WE DON'T KNOW. WE DO NOT PAY. NATHAN. I DON'T KNOW IF YOU WANT TO GET INTO THAT. THE THE PILOT AND FRANCHISE FEES ARE GOING TO BE BASED ON THE ELECTRIC RETAIL SALES REVENUE. 
          SO BUT AS AS THOSE ON THE MONTHLY BILLINGS, NOT THE WHAT THE DEVELOPERS CONTRIBUTE TO BRING THE SYSTEM UP SO THEY CAN NOW, NOW CONNECT AS THOSE AS THOSE DEVELOPMENTS COME ONLINE, THEN THOSE BUSINESSES WILL CONTRIBUTE THROUGH PILOT AND FRANCHISE FEES AS THEIR USAGE WITH THEIR NORMAL MONTHLY BILLINGS. YES. OKAY. THANK YOU. HAPPY TO ANSWER ANY OTHER QUESTIONS. ALL RIGHT. WE'LL MOVE OVER TO WATER LEAVES. GOING TO COVER THIS. I'LL SAVE ALL THE PUNS FOR YOU. NATHAN SAID. I SHOULD SAY IT WAS SHOCKING THAT YOU HAD NO DAD JOKES FOR THE ELECTRIC FUN. GOOD AFTERNOON, COUNCIL. LEE WALLACE, CHIEF FINANCIAL OFFICER. I'LL BE GOING THROUGH THE WATER FUND FOR YOU THIS AFTERNOON. WE WERE HERE WITH NEW GEN STRATEGIES AND SOLUTIONS TO GO OVER RATES AND COST OF SERVICE AT YOUR MAY 26TH MEETING, AND THAT WAS FOCUSED ON A FIVE YEAR FORECAST. LOOK AT THE FUND. SO TODAY I'LL FOCUS MORE ON 2026 AND 2027. KEY THEMES FOR OUR WATER UTILITY. CONTINUED INVESTMENT IN OUR WATER RESOURCE PLANNING AND OUR INFRASTRUCTURE. AND AS WE'VE ALREADY MENTIONED EARLIER IN THE PRESENTATION, WE DO HAVE A TERM SHEET WITH RECHARGE WATER FOR UP TO 34,800 ACRE FEET. WE'RE NOT CURRENTLY PAYING ANY RESERVATION FEES ON THAT WATER, BUT WE'LL TALK ABOUT HOW THAT IS PROGRAMED IN. BUT THAT'S A MAJOR COMPONENT FOR OUR FUTURE YEARS. WE'VE ALSO ALREADY DISCUSSED WITH YOU, BUT I'VE SUMMARIZED HERE THE RATE INCREASES FOR 2027. SO FOR YOUR AVERAGE RESIDENTIAL CUSTOMER, WHICH THAT'S ABOUT 10,000 GALLONS PER MONTH, IT'S ABOUT A $14 PER MONTH INCREASE THAT IS MADE UP OF A 4% INCREASE ON THE BASE RATE AND A 14% INCREASE TO VOLUMETRIC. AND OUR WASTEWATER PROJECTED AT A 12% INCREASE. AND THOSE RATES ARE REFLECTIVE OF THE POLICY CHANGE THAT WE BROUGHT TO YOU IN THE SPRING THAT YOU APPROVED TO MOVE FORWARD, WHERE WE BACKED OFF OF OUR 65% OF FIXED COSTS RECOVERED THROUGH THE BASE RATE AND 90% THROUGH THE FIRST TIER, AND WE'VE MOVED THAT TO 50% THROUGH THE BASE RATE AND 75% THROUGH THE FIRST TIER. AND THEN, OF COURSE, CAPITAL INFRASTRUCTURE FOR THE 
          [01:50:09]
WATER UTILITY IS REALLY THE LARGEST SINGLE EXPENSE CATEGORY FOR THIS CITY, TOTALS 706,000,000 IN 2027. BUILT OFF OF THE MASTER PLANNING PROCESS FOR THE UTILITY. A COUPLE OF THE HIGHLIGHT PROJECTS HERE WE'VE GOT THREE WASTEWATER TREATMENT PLANTS THAT ARE IN VARIOUS PHASES OF REHABILITATION AND EXPANSION, AND THE SAN GABRIEL INTERCEPTOR IS ANOTHER MAJOR PROJECT IN 2027. SO LOOKING AT 2026 OPERATING REVENUES, THOSE ARE PROJECTED TO COME IN AT ABOUT 208 MILLION. THAT'S A FULL YEAR OF THE RATE INCREASES THAT WERE ADOPTED IN 2026. I BELIEVE IT'S ALSO BEEN ABOUT A FULL YEAR SINCE WE'VE HAD THE SOUTH LAKE PLANT STARTING TO OPERATE. AND SO THAT HAS ALLOWED US TO DO THE CHANGES IN THE WATERING SCHEDULE AND HAVE MORE SALES. SO WATER CHARGES PROJECTED TO END THE YEAR AT ABOUT 100 MILLION. YOU KNOW, WE WILL CONTINUE TO EVALUATE THAT OVER THE SUMMER. IT HAS BEEN A LITTLE BIT OF A RAINY SPRING, SO WE WILL KEEP A CLOSE EYE ON THAT. WASTEWATER CHARGES PROJECTED TO END ON BUDGET AROUND 38 MILLION. WE PREVIOUSLY WERE CLASSIFYING THE WRONG DATE IRRIGATION FINES UNDER SALES REVENUE. AND IN 2026, WE'VE MOVED THOSE TO PENALTIES. SO THAT'S ALL YOU SEE THE YEAR OVER YEAR INCREASE THERE. AND THEN IMPACT FEES ARE PROJECTED AT 34.7 MILLION. FOR 2027. WE HAVE BUDGETED TOTAL OPERATING REVENUES AT 250 MILLION. AGAIN, THAT REFLECTS THE SALES. THE RATE INCREASES FOR WATER SALES. WE ALSO HAVE FEE REVENUES PROJECTED AT 6.8 MILLION, A 24% INCREASE OVER 2026, AND THEN IMPACT FEE REVENUES BUDGETED AT 59.4 MILLION. THAT'S ANOTHER AREA WHERE WE TRY TO BE CONSERVATIVE ON FORECASTING NEW CONNECTIONS, BUT NOT TOO CONSERVATIVE. SO WE'VE GOT A BALANCE THERE LOOKING AT 3400 NEW CONNECTIONS FOR WATER AND 2400 FOR WASTEWATER. 2026 OPERATING EXPENSES ARE PROJECTED TO END THE YEAR AT ABOUT 3.3 MILLION UNDER BUDGET. THERE'S A VARIETY OF FACTORS THERE. THERE ARE VACANCY SAVINGS ACROSS THE DIFFERENT COST CENTERS. THERE ARE A FEW OPERATIONAL SAVINGS IN RAW WATER CONTRACTS AND WHOLESALE WATER. WE'VE NOT NEEDED TO RELY ON THOSE CONTRACTS AS HEAVILY THIS YEAR AS WE ORIGINALLY THOUGHT. AGAIN, WE'RE NOT CURRENTLY PAYING ANY RESERVATION FEES WITH RECHARGE, BUT WE ARE PROJECTING THAT WE WILL COULD BE PAYING THEM LATE IN THE FISCAL YEAR. BASED ON THE TIMING OF THAT CONTRACT. WE HAVE SOME SAVINGS IN UTILITIES, SO THE COST OF POWER TO RUN THE PLANTS IN VARIOUS INFRASTRUCTURES AND THEN SAVINGS IN CHEMICALS OF ABOUT $1 MILLION. FOR THOSE OPERATING AREAS. FOR 2027, THEY'RE BUDGETED AT 80 MILLION. THAT'S ABOUT A 15% INCREASE COMPARED TO 2026. WE ARE ANTICIPATING A FULL YEAR OF RESERVATION FEES TO RECHARGE. WE HAVE REFLECTED THE INCREASE IN FRANCHISE FEES FROM THE RATES. THE SAME TECHNOLOGY ALLOCATION CHANGES ARE AFFECT THE UTILITY FUNDS AS WELL. THERE'S AN INCREASE IN THE JOINT SERVICES ALLOCATION AND THE GENERAL FUND ALLOCATION FOR SOME OF THE SERVICE LEVEL REQUESTS THAT WE'VE PREVIOUSLY TALKED ABOUT. AND THEN WE'RE ESTIMATING A $1 MILLION INCREASE IN THE RAW WATER AND WHOLESALE EXPENSES. AND WE BUDGET THE VACANCY FACTOR IN THE ADMINISTRATION COST CENTER. 
          AND WE'VE ESTIMATED THAT AT 5%. FOR 2027. THERE ARE ALSO CHANGES TO THE TECHNOLOGY ALLOCATION IN THE DISTRIBUTION COST CENTER. WE'VE LOOKED AT REALIGNING THE CHEMICALS BUDGET IN PLANT MANAGEMENT TO BE IN LINE WITH THE MULTI YEAR TREND THAT WE'VE LOOKED AT OF ACTUALS. 
          WE'VE ALSO GOT CHANGE IN THE TECHNOLOGY ALLOCATION IN THE REGULATORY CONSERVATION AND CONTROL CENTER COST CENTERS. AND THEN YOU'LL SEE WE'VE REFLECTED A FULL YEAR OF THE REORGANIZATION OF THE CONTROL CENTER SERVICE LEVEL REQUESTS FOR WATER OPERATIONS. SO ONE 
          [01:55:07]
POSITION, THE WATER UTILITY HAS GROWN SIGNIFICANTLY IN PRIOR YEARS. AND WE'VE SOMETIMES ADDED FIVE, TEN, 15 POSITIONS IN A YEAR. BUT THIS YEAR, JUST THE ONE POSITION SCADA TECHNICIAN THAT'S FOR EQUIPMENT MAINTENANCE. WE ALSO HAVE RECLASSING TWO VEHICLES SO THAT THEY HAVE AN F-550 WITH A CRANE. THE FRANCHISE FEE EXPENSE, WATER SHARE OF THE CIP PROJECT MANAGER ALLOCATION THAT WE'VE ALREADY DISCUSSED, AND THEN SOME. MAINTENANCE AND REPLACEMENT WORK. SO AT THE LAKE PLANT, THERE ARE SOME KIND OF GRATES, AND THE UTILITY DID A GREAT JOB BRINGING IN, SHOWING PICTURES OF HOW THOSE ARE WORN OUT AND NEED TO BE REPLACED WITH A HIGHER QUALITY MATERIAL. AND THEN IMPROVEMENTS FOR SECURITY BY ADDING A FENCE AND A GATE AT SOUTH SIDE. MOVING ON TO WASTEWATER OPERATIONS. SO FOR 2026, THOSE ARE PROJECTED TO BE BELOW BUDGET BY ABOUT $2 MILLION. THERE WAS A DEVELOPER REIMBURSEMENT THAT WAS BUDGETED, BUT WE DON'T ANTICIPATE THAT THAT WILL BE PAID IN THIS FISCAL YEAR. ALSO HAVE VACANCY SAVINGS AND SIMILAR SAVINGS IN THE COST OF UTILITIES AND CHEMICALS. FOR 2027. THOSE EXPENSES ARE PROJECTED TO ALIGN PRETTY CLOSELY WITH THE PREVIOUS FISCAL YEAR, CONTINUING TO SEE CHANGES IN THE TECHNOLOGY ALLOCATION ACROSS THESE COST CENTERS. NOT CURRENTLY PROJECTING ANY DEVELOPER REIMBURSEMENTS IN PLANT MANAGEMENT. THERE'S A BIG CHANGE. SO IN 2026, WE HAVE A RENTAL FOR SOME PACKAGE PLANT EQUIPMENT. AND THAT'S NOT CONTINUING AT THE SAME AMOUNT IN 2027. AND THEN WE'VE RE FORECASTED THE UTILITIES TO ALIGN WITH THOSE PRIOR YEAR TRENDS, SERVICE LEVEL REQUESTS FOR WASTEWATER, A DISPLACEMENT BLOWER GOING TO REPLACE THAT AT THE DOVE SPRINGS PLANT, ADDING A SPARE CLARIFIER DRIVE SO THAT THEY HAVE THAT EQUIPMENT ON HAND AND REDUCE DOWNTIME AT THE DOVE SPRINGS WASTEWATER TREATMENT PLANT, AND THEN ADDING SOME SCREENS AT THE SAN GABRIEL WASTEWATER TREATMENT PLANT. WE DO ALSO HAVE A MUCH SMALLER PROPORTION OF THE UTILITY THAT PROVIDES NON POTABLE REUSE IRRIGATION SERVICES FOR 2026. THOSE OPERATING EXPENSES ARE PROJECTED TO BE BELOW BUDGET, AND NO MAJOR CHANGES FOR 2027. 
          IN THE METERING AREA. THEY ALSO HAVE SOME SAVINGS IN 2026 AND THEN AN INCREASE IN 2027, $2.5 MILLION FOR METER MAINTENANCE AND REPLACEMENT. THEY CONTINUE TO DO THEIR ARMY METER PROJECT INSIDE THE CITY LIMITS, AND THEN CHANGES IN TECHNOLOGY ALLOCATION FOR WATERS NON-DEPARTMENTAL COST CENTER, THE OPERATING EXPENSES. THAT IS WHERE WE HOUSE THE BUDGET FOR UTILITY BILLING, BAD DEBT. SO BASICALLY ACCOUNTS THAT WE CAN'T COLLECT ON. AND THOSE ARE THAT TREND IS SIMILAR TO PRIOR YEARS FOR 2027 IN THE NON OPERATING NON-DEPARTMENTAL AREA. 
          THAT INCREASE IS ABOUT $7 MILLION. SO THAT INCLUDES THE TRANSFER OF WATER SHARE FOR THE CUSTOMER SERVICE CENTER, THE INCREASE IN PAYMENT IN LIEU OF TAXES FOR THE RATES, COST OF ISSUANCE OF BONDS. SO IT'S TYPICALLY ABOUT 1% FOR TOTAL BOND ISSUANCES ARE THE EXPENSES FOR THE COSTS FOR ATTORNEYS FINANCIAL ADVISER FEES AND THE LIKE. AND THEN WE DO HAVE AN ARBITRAGE EXPENSE IN THE WATER FUND OF $1.7 MILLION. SO FOR THE WATER UTILITIES CAPITAL INFRASTRUCTURE PROGRAM, WE HAVE SEVERAL DIFFERENT FUNDING SOURCES, REVENUE BONDS BEING THE LARGEST. SO GOING TO THE MARKET TO GET A LOAN WITH OUR BOND RATING, WE ALSO LEVERAGE IMPACT FEES AS MUCH AS WE CAN. SO THE THE DEVELOPMENT IS PAYING FOR THE GROWTH AND EXPANSION IN 2027. WE'VE ALSO BEEN AWARDED A SWIFT LOAN FROM THE TEXAS WATER DEVELOPMENT 
          [02:00:02]
BOARD FOR $111 MILLION. THAT'S A LOW INTEREST LOAN, AND THAT WILL GO TOWARDS THE GEORGETOWN REGIONAL WATER INITIATIVE PROJECT. AND RIGHT NOW, WE HAVE A PROGRAMED IN CASH CONTRIBUTIONS AT 4.7 MILLION. AGAIN, THIS IS OUR OUR FIRST DRAFT OF THE BUDGET. NOW THAT WE'VE SECURED THAT SWIFT LOAN, WE'RE GOING TO GO BACK AND LOOK AND SEE IF WE CAN SHIFT MORE PROJECTS IN 2027 TO BE FUNDED FROM CASH AND LOWER THE AMOUNT OF REVENUE BONDS THAT WE NEED TO ISSUE NEXT YEAR. SO WE WILL LET YOU KNOW IF WE HAVE ANY CHANGES AFTER WE DO THAT REVIEW. 
          AND THEN FOR DEBT SERVICE FOR DEBT THAT'S ALREADY BEEN SOLD IN 2027, IT'S 32 MILLION FOR WASTEWATER AND 31 MILLION FOR WATER. HERE ARE AGAIN, SOME OF THOSE MAJOR WASTEWATER PROJECTS. 
          I ALREADY MENTIONED. THE THREE WASTEWATER TREATMENT PLANT REHABILITATION AND EXPANSION, THREE FORKS BEING THE LARGEST AT 213 MILLION. AND THEN ON THE WATER CAPITAL PROJECT SIDE, 291 MILLION TOTAL. IN PROJECTS. I WOULD POINT POINT OUT. SO GROUNDWATER SUPPLY FROM THE EAST FOR 152 MILLION, THE TAYLOR INTAKE SITE FOR 54 MILLION AND THE COUNTY ROAD 141 SITE FOR 56 MILLION. ALL THREE OF THOSE ARE PART OF THAT GEORGETOWN REGIONAL WATER INITIATIVE PROJECT, AGAIN FUNDED BY A COMBINATION OF THE SWIFT LOAN REVENUE, BONDS AND IMPACT FEES. THAT'S THE WATER FUND. ANY QUESTIONS THAT I CAN ANSWER OR THAT I CAN ASK CHELSEA TO ANSWER? I THINK WE'RE GOOD. OKAY, GREAT. THANK YOU. ALL RIGHT. WE'LL TALK AIRPORT FUND. SO KEY THEMES FOR 27 IS JUST FACILITY MAINTENANCE REPLACEMENTS AND OUR CONTINUED PARTNERSHIPS WITH FEDERAL AND STATE GRANTS FOR REVENUE VARIANCES FOR 2026. PROJECTIONS ARE CURRENTLY AT BUDGET. WE MAY DO AN END OF YEAR BUDGET AMENDMENT FOR FUEL SALES, WHICH IS NOT UNCOMMON. THERE IS A NEW CONTRACT THAT IS DOING NEW PILOT TRAINING FOR THE AIR FORCE OUT AT THE AIRPORT, SO WE DON'T KNOW HOW THAT'S GOING TO IMPACT FUEL SALES. WE'LL KNOW OVER THE NEXT FEW MONTHS, BECAUSE THAT'S JUST COMING ONLINE OF WHAT THAT WILL LOOK LIKE. LONG TERM AND FUEL SALES ACCOUNTS FOR ABOUT 67% OF AIRPORT REVENUES AND HAS A CORRESPONDING EXPENSE. EXPENSE VARIANCES FOR 26 ARE PROJECTED AT BUDGET. BUT AGAIN, IF WE SELL MORE FUEL, WE'LL NEED A BUDGET AMENDMENT, AND AVIATION FUEL ACCOUNTS FOR ABOUT 72% OF OPERATING EXPENSES. SO FOR EXAMPLE, FOR THIS YEAR FOR 26, WE'LL HAVE I THINK WE'RE PROJECTED TO BE AT ABOUT 3.9 MILLION IN FUEL SALES. AND THEN THERE'S THE CORRESPONDING 4.6 MILLION IN REVENUE GENERATED FROM THAT. FOR REVENUE VARIANCES, 27 REVENUES BUDGETED 12.3% OVER. AIRPORT IS EXPECTING A GRANT. THERE'S ABOUT $1 MILLION GRANT. THAT WOULD BE FOR OUR FENCING PROJECT. AND THEN SMALLER GRANTS FOR MAINTENANCE FOR STREET ASPHALTIC. THERE'S TWO PROJECTS I'LL COVER AT THE END. FUEL SALES BUDGETED 4.4% OVER. 
          AND FOR 27 OPERATING EXPENSES, AIRPORT ARE BUDGETED AT 20% MORE THAN LAST YEAR. THAT'S AGAIN DUE TO THE GRANT REVENUE. BOTH THE STREET ASPHALTIC AND INCREASE IN FUEL FOR 27 NON OPERATING EXPENSES ARE 79% LESS THAN 26 BUDGET. THAT'S A DECREASE IN CIP. IF YOU REMEMBER, THIS YEAR WE HAD OVER 2 MILLION IN THE BUDGET TO DO THE MAINTENANCE FACILITY OUT AT THE AIRPORT. THAT'S CURRENTLY UNDER CONSTRUCTION. AND OVERALL 27 BUDGET EXPENSES ARE ABOUT 9.2%, LESS THAN 26. SO I WILL SAY WE ARE RECOGNIZING THERE'S THE TREND WITH AIRPORT EXPENSES OUTPACING REVENUES, EXPENSES. THIS GOING INTO INTO 27 ARE MAINLY ALLOCATIONS. MOST OF THE ALLOCATIONS WENT UP. UTILITIES FUEL, WHICH WILL BE AN OFFSETTING REVENUE. MOST OF THE PROJECTIONS THAT ARE IN THIS DRAFT RIGHT NOW ARE PRETTY CONSERVATIVE. NATHAN CAN SPEAK TO THAT. WE DON'T KNOW. AGAIN, WITH FUEL WE HAVE WE'VE DONE SOME THINGS OVER THE LAST FEW YEARS MONITORING FEES. WE CHANGED FEES, I THINK WITHIN THE LAST YEAR OR TWO, MONITORING FUEL PRICING. WE BROUGHT A POLICY TO YOU ABOUT A YEAR OR SO AGO TO ALLOW US TO CHANGE FUEL PRICING AND BE A LITTLE MORE NIMBLE. WE JUST ADJUSTED THE LEASE POLICY TO ALLOW FOR LONGER LEASES. WE HAD A LEASE APPROVED LAST MEETING. WE HAVE ANOTHER ONE ON THE WAY AND MAYBE ANOTHER 1 OR 2 FOLLOWING THAT GOING INTO THE NEXT YEAR. SO THERE'LL BE SOME NEW LEASES AND NEW REVENUE COMING ON BOARD AS WELL. AND THEN CIP, YOU HAVE TWO MILL AND OVERLAY PROJECTS, ONE AT THE CUTTER'S NORTH RAMP AND THEN TEXAS AVIONICS TAXIWAY, AND 
          [02:05:03]
THEN THE SECURITY FENCING WILL HAVE OUR 10% CITY SHARE FOR FENCING PROJECT. AND THAT IS THE AIRPORT FUND. HAPPY TO ANSWER ANY QUESTIONS. WE'RE GOOD. OKAY. THANK YOU MAYOR. 
          OKAY. I'M BACK FOR THE JOINT SERVICES FUND. SO AS DAVID WAS MENTIONING EARLIER IN THE PRESENTATION TODAY, THE JOINT SERVICES FUND HOUSES A LOT OF THE SERVICES THAT ARE SHARED AMONG ALL OF THE OTHER DEPARTMENTS, AND THOSE GET ALLOCATED OUT BASED ON HOW THE DEPARTMENTS USE THOSE SERVICES. SO SOME OF OUR HIGHLIGHTS, WE ARE INVESTING IN OUR PEOPLE THROUGH LEADERSHIP DEVELOPMENT AND HEALTH, SAFETY AND OVERALL WELLNESS PROGRAMS. THAT'S THROUGH OUR HUMAN RESOURCES DEPARTMENTS AND OUR ORGANIZATIONAL DEVELOPMENT DEPARTMENTS. IN 2026, WE DID PROVIDE ONE TIME FUNDING TOWARDS THE FUTURE DATA CENTER RELOCATION FOR OUR IT DEPARTMENT AND THE CUSTOMER SERVICE CENTER. IN 2027. WE ARE SUPPORTING RISK MANAGEMENT IN SOME KEY AREAS OF FINANCE, AS WELL AS SUPPORTING SOME CIP PROJECT EXECUTION AND OUR SYSTEMS ENGINEERING AND LEGAL DEPARTMENT. SO AGAIN, THE REVENUES FOR THIS FUND COME FROM ALLOCATIONS FROM OTHER DEPARTMENTS LIKE WATER ELECTRIC, THE GENERAL FUND, STORMWATER AIRPORT, ETC. THE METHODOLOGY IS BASED ON HOW EACH DEPARTMENT USES THEM. SO FOR EXAMPLE, HUMAN RESOURCES IS ALLOCATED BASED ON THE NUMBER OF EMPLOYEES IN EACH DEPARTMENT. IF WE HAVE ANY SAVINGS IN A FISCAL YEAR, WE'LL USUALLY APPLY THAT AS A CREDIT TO DO THE ALLOCATION FOR THE NEXT FISCAL YEAR. AND WE'VE DONE THAT BETWEEN 2026 AND 2027. WE HAVE TOTAL 2027 EXPENDITURES BUDGETED AT 35.5 MILLION, WHICH IS AN 8.7% INCREASE OVER 2026. AND WE DO HAVE A FULLY FUNDED 90 DAY OPERATING RESERVE. SO IN THE FINANCE AREAS, WHICH INCLUDES ACCOUNTING, PURCHASING, WAREHOUSE, AND OUR BUDGET AND TREASURY TEAM, THOSE EXPENSES ARE PROJECTED AT 2.5% UNDER BUDGET. WE'VE HAD A FEW VACANCIES. WE'VE HAD SOME SAVINGS IN TRAVEL AND TRAINING AND SOME SAVINGS IN SOFTWARE MAINTENANCE SUBSCRIPTIONS. IT'S OVERALL A 12% INCREASE COMPARED TO 2025. GOING INTO 2027, THERE'S A 21% INCREASE COMPARED TO 2026. WE HAVE THE MERIT INCREASES ACROSS ALL OF THE COST CENTERS, THE TECHNOLOGY ALLOCATION CHANGES THAT WE'VE PREVIOUSLY DISCUSSED, AND AN INCREASE IN OUR FACILITIES ALLOCATION. SO SERVICE LEVEL REQUESTS IN THIS AREA, WE HAVE FOUR TOTAL POSITIONS FOR OUR ACCOUNTING DEPARTMENT. THIS AREA HAS REALLY EXPERIENCED A LOT OF PRESSURE FROM WORKLOAD. WE'VE HAD SOME BURNOUT AND SOME TURNOVER IN THE AREA. AND SO THESE POSITIONS ARE ARE ADDED TO BASICALLY ASSIST WITH THAT AND KIND OF MITIGATE SOME OF OUR RISK AROUND OUR REGULAR ACCOUNTING DUTIES ON FINANCIAL REPORTING AND OTHER TASKS. SO WE'VE GOT TWO ACCOUNTANTS, ONE GRANT MANAGER. WE DO HAVE 45 GRANTS AT THIS TIME. WE HAVE REQUESTED AN ENTERPRISE RESOURCE PLANNING SOFTWARE SYSTEM ANALYST. SO THAT IS SOMEONE WHO CAN HELP US WITH UPTAKE OF FUNCTIONALITY IN OUR WORKDAY SYSTEM. THERE'S LOTS OF NEW FUNCTIONALITY THAT WORKDAY RELEASES EVERY YEAR, BUT IF WE DON'T HAVE THE BANDWIDTH TO UPTAKE IT, THEN WE DON'T GET THE BENEFIT OF ALL OF THE EFFICIENCIES FROM THOSE. SO WE WANT TO ADD THAT POSITION. WE ALSO HAVE SOME $75,000 IN TEMPORARY FUNDING TO HELP OUR ACCOUNTS PAYABLE SPECIALIST TEAM IN PURCHASING. WE HAVE BASICALLY ROLLED FORWARD THE REQUEST THAT WE ASKED LAST YEAR. WE NEED TO REPLACE OUR ELECTRONIC SOLICITATION MANAGEMENT SYSTEM AND ADD CONTRACT LIFECYCLE MANAGEMENT FUNCTIONALITY SOFTWARE. WE POSTPONE THAT PROJECT IN 2026 SO THAT WE COULD DO SOME OTHER EFFICIENCY AND OTHER TRAINING CHANGES ON OUR PROCUREMENT TEAM. SO WE'RE REQUESTING THIS AGAIN IN 2027. ALSO REQUESTING WE ADD 
          [02:10:06]
A SENIOR BUYER. THE SENIOR BUYERS WORK ON FORMAL SOLICITATIONS FOR ANYTHING OVER $100,000. AND YOU CAN IMAGINE WITH THE CITY OF OUR SIZE AND THE GROWTH WE'VE ANTICIPATED, LOTS OF THINGS COST OVER $100,000 THESE DAYS, SO NEED TO RELIEVE SOME OF THE WORKLOAD PRESSURE ON THAT TEAM, AND THEN ADDING SOME $85,000 FOR TEMPORARY ASSISTANCE FOR THAT TEAM AS WELL TO HELP US FINISH OUT THE PROJECTS THAT WE HAVE STARTED THIS YEAR TO HELP WITH PROCESS IMPROVEMENTS AND EFFICIENCIES ON THE PROCUREMENT TEAM. MOVING TO ASK A QUESTION ABOUT THE GRANT MANAGER, THE GRANT MANAGER POSITION, ARE THEY JUST MANAGING ALL THE GRANTS THAT WE ARE AND REPORTING BACK TO THOSE GRANTEES, OR THEY ALSO SEARCHING FOR NEW RESOURCES? IT IS JUST TO MAINTAIN THE REGULATORY REPORTING REQUIREMENTS FOR THE GRANTS THAT WE HAVE. WE DON'T ANTICIPATE THERE BEING A LOT OF BANDWIDTH TO HELP THE OTHER, WHAT WE CALL OUR CUSTOMER DEPARTMENTS, RESEARCH AND FIND GRANTS. THE. THE DEPARTMENTS WOULD STILL BE PRIMARILY RESPONSIBLE FOR THAT, ALTHOUGH FINANCE IS AVAILABLE TO HELP ADVISE THEM AS THEY'RE CONSIDERING WHAT GRANTS THEY WANT TO APPLY FOR. AND WE HAVE KIND OF A GRANT APPLICATION INTAKE PROCESS WHERE WE HELP THEM GO THROUGH THE COST BENEFITS OF THAT AND MAKE SURE THAT THEY'RE GOING TO BE ABLE TO COMPLY WITH WHATEVER THEY'RE SIGNING UP FOR. OKAY. THAT'S WHAT I THOUGHT YOU WERE GOING TO SAY. THANKS. OKAY, OKAY. MOVING TO OUR UTILITY CUSTOMER COST CENTER. SO THAT INCLUDES THE CALL CENTER, CUSTOMER SERVICE, AND THEN OUR CUSTOMER BILLING DEPARTMENT FOR 2026. 
          THOSE EXPENSES ARE PROJECTED AT 5.4% UNDER BUDGET DUE TO SOME VACANCY SAVINGS. WE HAD ADDED A RECRUITMENT EXPENSE IN THERE, BUT WE WERE ABLE TO FIND A GOOD CANDIDATE WITHOUT HAVING TO USE A RECRUITING AGENCY. SO WE'VE GOT SAVINGS THERE AS WELL AS SOME SAVINGS IN OUR DATA PLANS, AND THAT'S A 2% INCREASE OVER 2025. FOR 2027, IT'S A TOTAL 13% INCREASE COMPARED TO 2026, INCLUDING MERIT FOR EMPLOYEES. A SHIFT IN THE TECHNOLOGY ALLOCATION. SO BOTH OF THESE COST CENTERS HEAVILY USE OUR UMAX BILLING SOFTWARE. AND SO THERE WAS JUST A SHIFT IN IN HOW THAT WAS ALLOCATED. OF COURSE, THESE DEPARTMENTS THEN GET ALLOCATED BACK OUT VIA THEIR ALLOCATION METHOD TO THE UTILITIES. AND THEN WE BACKED OUT SOME ONE TIME FUNDING IN UTILITIES CONSULTING THAT WAS NO LONGER NEEDED. AND THEN WE HAVE A SERVICE LEVEL REQUEST FOR OUR BILLING COSTS, A CENTER FOR SOME CONTRACTED PROJECT MANAGEMENT SUPPORT. WE HAVE SOME CASHIERING SOFTWARE UPGRADES THAT ARE COMING IN THAT AREA, AND A PROJECT MANAGER SUPPORT WOULD HELP THAT GROUP. FOR HUMAN RESOURCES AND OUR ORGANIZATIONAL DEVELOPMENT DEPARTMENT. THOSE ARE PROJECTED AT 5.8% UNDER BUDGET, WITH VACANCY AND SAVINGS IN TEMPORARY AND SEASONAL STAFF. ALSO, SOME SAVINGS IN CIVIL SERVICE RECRUITMENT AND TESTING, ABOUT $80,000 IN SAVINGS IN TRAVEL AND TRAINING, AND 32,000 IN CONSULTING. 2026 IS PROJECTED TO BE AN 11% INCREASE OVER 2025. IN 2027. JUST A SLIGHT LESS THAN 1% INCREASE COMPARED TO 2026. ACROSS THESE COST CENTERS, WE DO HAVE MERIT INCREASES. WE'VE ESTIMATED OUR PROPERTY AND CASUALTY INSURANCE. WE DON'T GET THAT NUMBER FROM THE TEXAS MUNICIPAL LEAGUE UNTIL LATER IN THE YEAR, BUT THAT'S OUR BEST ESTIMATE BASED ON HISTORICAL TRENDS. AND THEN WE HAVE THE TECHNOLOGY ALLOCATION CHANGES AND SOME SAVINGS IN TRAVEL AND TRAINING. 
          AND THERE ARE NO SERVICE LEVEL REQUESTS IN THIS AREA. FOR THE NON-DEPARTMENTAL COST CENTER IN JOINT SERVICES. SO LIKE THE GENERAL FUND, THIS COST CENTER HOUSES THE BUDGET FOR VACANCY SAVINGS, BUT THOSE SAVINGS ARE ACTUALLY REALIZED ACROSS THE DIFFERENT DEPARTMENTS. WE ARE PROJECTING THAT WE WILL GO ABOUT $100,000 OVER BUDGET IN CREDIT CARD FEES. THIS COST CENTER HOUSES THE EXPENSE FOR THAT CITYWIDE. AND THEN THIS IS AN OVERALL PROJECTED INCREASE OF 7% COMPARED TO 2025. FOR 2027, THE EXPENSES SHOW A 20% DECREASE COMPARED TO 2026. SO 
          [02:15:10]
IN 2026, WE DID HAVE THAT ONE TIME TRANSFER OUT FROM THIS FUND TO THE IT FUND TO HELP WITH THE COSTS OF THE DATA CENTER NEEDS AT THE CUSTOMER SERVICE CENTER. SO THAT'S A BIG FACTOR IN THE YEAR OVER YEAR DECREASE. AND THEN WE'VE CONTINUED TO BUDGET THE VACANCY FACTOR IN THIS COST CENTER. BUT AGAIN, IT WILL BE REALIZED THROUGHOUT NEXT YEAR IN EACH DEPARTMENT AREA. WE ALSO HAVE THE CREDIT CARD FEES EXPENSE INCREASING ABOUT $200,000. WE ARE DOING A REVIEW OF MERCHANT SERVICES CITYWIDE. THAT PROJECT IS CURRENTLY UNDERWAY, BUT WE DON'T HAVE ANY RESULTS BACK RIGHT NOW IN TIME FOR THIS DRAFT OF THE BUDGET. BUT WE WILL LET YOU KNOW ONCE WE HAVE THOSE IN NO SERVICE LEVEL REQUESTS. MOVING TO SYSTEMS ENGINEERING FOR 2026. THEIR EXPENSES ARE PROJECTED AT 2.5% OR A LITTLE UNDER $100,000 UNDER BUDGET DUE TO SALARY SAVINGS, AND THERE ARE 4% INCREASE COMPARED TO LAST YEAR. 
          FOR 2027, THEY HAVE ALMOST A 12% INCREASE COMPARED TO 2026. THAT INCLUDES THEIR CHANGES TO THE TECHNOLOGY ALLOCATION, THEIR INCREASE IN VEHICLE LEASE ALLOCATIONS AND FUEL. AND THEN THEY HAVE A SERVICE LEVEL REQUEST FOR A PROJECT MANAGER. SO THEY HAVE OVER 70 PROJECTS THAT ARE IN IN THE QUEUE RIGHT NOW. AND IT'S REALLY CAUSING CAPACITY ISSUES ON THEIR TEAM. 
          AND SO WE WANT THEM TO BE ABLE TO GET TO THE HEAVY CAPITAL PLAN THAT WE HAVE AND EXECUTE ON THAT. SO WE'RE ADDING THIS POSITION AND THAT GETS ALLOCATED OUT TO THE USING DEPARTMENTS FOR UTILITY LOCATES. SO THIS IS A WAS A NEW COST CENTER THAT WE ADDED IN 2026 AS PART OF THE REORGS AND SEPARATIONS THAT WE DID BETWEEN THE WATER AND ELECTRIC UTILITY. 
          IT IS PROJECTED AT 1% UNDER BUDGET DUE TO SALARY SAVINGS AND THEN CATCHING THE FUEL EXPENSES FROM THE REORGANIZATION. IN 2027. THEY HAVE A 15% INCREASE COMPARED TO 2026. THAT INCLUDES THE TECHNOLOGY ALLOCATION CHANGES, THE VEHICLE LEASE ALLOCATION TO ALIGN WITH THE VEHICLES THAT NEEDED TO MOVE TO THIS COST CENTER, AS WELL AS THE FUEL AND NO SERVICE LEVEL REQUESTS FOR REAL ESTATE AND LEGAL FOR 2026. THE EXPENSES ARE PROJECTED AT ABOUT 2%. UNDER BUDGET, THERE IS ABOUT $30,000 IN SAVINGS IN THE MUNICIPAL PROSECUTOR SERVICES, AS WELL AS SOME SAVINGS AND APPRAISAL AND SURVEY CONTRACTS. OVERALL, PROJECTED TO BE AN INCREASE OF 19% COMPARED TO 2025. IN 2027, EXPENSES ARE PROJECTED TO INCREASE ABOUT 7.7%. THAT INCLUDES THE MERIT AND MARKET INCREASES FOR LEGAL. THEY DID PROJECT SOME SAVINGS IN LITIGATION AND SPECIAL PROJECTS. THEY HAVE THEIR CHANGES IN THE TECHNOLOGY ALLOCATION, AND THEN THEY HAVE ONE SERVICE LEVEL REQUEST A REAL ESTATE SERVICES COORDINATOR. AGAIN, THIS POSITION IS STRATEGIC TO HELP US EXECUTE ON OUR LARGE CAPITAL IMPROVEMENT PROGRAM. THEY HAVE OVER 400 PARCELS THAT THEY ARE WORKING ON. I BELIEVE THEY HAVE A TEAM OF TWO PEOPLE WORKING ON THOSE, SO ADDING A THIRD TO HELP THEM BE ABLE TO TO EXECUTE ON THOSE PROJECTS AND KEEP THOSE PROJECTS MOVING ON TIME. THE ECONOMIC DEVELOPMENT DEPARTMENT FOR 2026, JUST A PROJECTED SLIGHTLY OVER BUDGET DUE TO SALARY CHANGES FOR RECLASSING A POSITION TO ADD THE ASSISTANT DIRECTOR AND AND THEY WERE A 30% INCREASE OVER 2025. EXCUSE ME, FOR 2027, EXPENSES ARE ABOUT 8% INCREASE COMPARED TO 2026. THAT'S JUST INCLUDES OUR REGULAR INCREASES FOR MERIT MARKET AND BENEFITS. AND THEY HAVE NO SERVICE LEVEL REQUESTS. AND THAT IS THE END OF THE JOINT SERVICES FUND. ANY QUESTIONS THERE? OKAY. I'M GOING TO KEEP GOING AND DO THE FLEET FUND. SO OUR FLEET DEPARTMENT MANAGES THE PROCUREMENT AND MAINTENANCE OF ALL OF OUR MOTORIZED EQUIPMENT, AS WELL AS THEY'VE GOT TRAILERS AND OTHER NON MOTORIZED EQUIPMENT THAT THEY MAINTAIN. THEY CONTINUE TO. REVIEW THE 
          [02:20:09]
USEFUL LIFE OF THEIR ASSETS AND MAKE RECOMMENDATIONS ON WHAT NEEDS TO BE REPLACED AND WHAT CAN CONTINUE IN SERVICE AND PROVIDE A SCHEDULE FOR THAT. AND THEN THAT'S BEEN REFLECTED IN THE BUDGETS OF ALL THE FUNDS THAT YOU'VE SEEN TODAY. AND THEY WILL PURCHASE ANY NEW VEHICLES AS PART OF ANY SERVICE LEVEL REQUESTS. THEIR 2026 PROJECTIONS ARE AT BUDGET. 
          AGAIN, THIS EVERYTHING IS ALLOCATED OUT BASED ON THE COST OF THE VEHICLES FOR REPLACEMENT, FOR INSURANCE, FOR THEIR RADIOS, FOR THEIR TAGS, ALL OF THOSE THINGS FOR 2027. IT'S A 15% INCREASE OVER 2026, PRIMARILY JUST FOR THE ADDED VEHICLES THAT ARE PART OF THE FUND. AND THEN INTEREST INCOME WAS BUDGETED AT 743,000. 2026. PROJECTIONS ARE JUST SLIGHTLY OVER THE AMENDED BUDGET, SO WE DID HAVE A ROLL FORWARD BUDGET AMENDMENT FOR ANY VEHICLES OR EQUIPMENT THAT WEREN'T RECEIVED BY THE END OF 2025, AND THEN HAD AN OVERAGE IN PROPERTY AND CASUALTY INSURANCE. AGAIN, THAT WAS JUST WE DID OUR BEST TO ESTIMATE WHAT THAT WAS GOING TO BE LAST YEAR. AND THEN WHEN THE ACTUALS CAME IN, WE MISSED IT BY A LITTLE BIT. FOR 2027, IT'S A 32% DECREASE FROM 2026. AGAIN THIS IS DUE TO THE TO THE CHANGE FROM THE MAJOR CAPITAL EQUIPMENT PURCHASES. WE HAVE ESTIMATED THE INSURANCE AT $200,000 AND TRIED TO ALIGN WITH THE TRENDS THAT WE HAVE SEEN, AND THEN WE'LL HAVE OUR MARKET MERIT AND EMPLOYEE BENEFIT INCREASES IN THIS FUND AS WELL. THERE'S NO SERVICE LEVEL REQUESTS IN FLEET. THEIR CAPITAL BUDGET IS BASED ON THE FIRE AND POLICE VEHICLES THAT THEY WILL PURCHASE ON BEHALF OF THOSE DEPARTMENTS. ANY QUESTIONS ON FLEET? ALL RIGHT. I'M GOING TO KEEP GOING THEN TO FACILITIES. SO OUR FACILITIES DEPARTMENT HELPS MAINTAIN AND REPLACE THE LIFE OF OUR CITY FACILITIES AND THE ASSETS IN THOSE FACILITIES. THEIR 2026 REVENUE IS PROJECTED AT BUDGET. 
          AGAIN, THIS IS ANOTHER ALLOCATED DEPARTMENT. THEY LOOK AT HOW THE FACILITY IS USED, WHETHER IT'S A PUBLIC FACILITY OR MORE OF AN INTERNAL FACILITY. THEY LOOK AT SQUARE FOOTAGE AND COME UP WITH AN ALLOCATION METHODOLOGY FOR THAT, AND THAT WILL PRETTY MUCH BE ON BUDGET FOR 2027. THERE'S A 1% INCREASE IN THAT ALLOCATION, AND THEN A SLIGHT DECREASE IN INTEREST EARNINGS FOR 2026 EXPENSES. THOSE ARE PROJECTED JUST SHY OF 5% UNDER BUDGET DUE TO LOWER EXPENSES IN THE JANITORIAL SERVICES, REMODELING AND LANDSCAPING. AND THEN IN 2027, A 2%, A DECREASE COMPARED TO 2026. THAT'S A REALIGNING THE REMODELING AND JANITORIAL SERVICES WITH ACTUALS, BUT ALSO INCLUDES OUR EMPLOYEE SALARY AND BENEFIT INCREASES AND CHANGES IN THE TECHNOLOGY ALLOCATION. THEY DID HAVE TWO SERVICE LEVEL REQUESTS ONE, TO IMPROVE SECURITY AT OUR FACILITIES WOULD BE AN UPGRADE TO OUR SECURITY MANAGEMENT SYSTEM. SO HOW EMPLOYEES ACCESS BUILDINGS. AND THEN THE SECOND ARE THE AMERICAN DISABILITY ACT STUDY DEFICIENCIES FROM THE 2025 ASSESSMENT. SO SOME OF THE PROJECTS THEY'RE LOOKING AT COMPLETING IN 2027 ARE A NEIGHBORHOOD CENTER, THE PARKS ADMIN BUILDING, AND IMPROVEMENTS TO THE TENNIS CENTER. ANY QUESTIONS ON FACILITIES? OKAY. BACK TO YOU, WAYNE. OKAY. WE'LL COVER THE IT FUND THEMES FOR IT CYBER SECURITY, FIBER MASTER PLAN IMPLEMENTATION, AND INCREASED SOFTWARE COST ACROSS THE ORGANIZATION. WHAT'S MISSING FROM THAT IS THE DATA CENTER AS WELL, WHICH I'LL SPEAK TO FOR 26 AND 27 REVENUES, JUST REVENUES IN GENERAL. IT ALLOCATIONS AGAIN, ARE FOR SUPPORT SERVICES PROVIDED TO 
          [02:25:02]
THE CITY THROUGH IT TRANSFERS IN FOR THE PURCHASES OF NEW COMPUTERS FOR NEW EMPLOYEES. 
          INTEREST INCOME CAME IN HIGHER THAN BUDGET AND OTHER MISCELLANEOUS REIMBURSEMENTS, AND REVENUE FOR 26 REVENUE PROJECTIONS ARE 1.7% ABOVE BUDGET FOR 27 10.8% OVER 26 DUE TO GROWTH IN SOFTWARE CONTRACTS, INTEGRATIONS, AND THE NUMBER OF END USERS. AND THERE'S $151,000 TRANSFER IN FOR EQUIPMENT FOR NEW PERSONNEL. ON EXPENSES, 26 IS PROJECTED AT 0.7% LESS THAN BUDGET DUE TO SALARY, SAVINGS AND SAVINGS IN UTILITIES, AND 27 BUDGET IS 20% OVER FISCAL YEAR 26 BUDGET. NOW, THIS IS A SLIDE CHANGE THAT I WANT TO CALL OUT IN YOUR COPY. IT SHOULD SAY NETWORK. IT'S ATTRIBUTED TO NETWORK GROWTH AND CYBERSECURITY, WHICH IS NOT GOING TO BE THE CASE. THAT 20% INCREASE IS REALLY GOING TO BE HARDWARE IN THE FINER DETAIL, OR COMPUTER HARDWARE HAS BEEN INCREASED BY 3.7 MILLION, WHICH IS DUE TO THE DATA CENTER PROJECT. SO IT'S THE DATA CENTER PROJECT IN OUR INCREASE THE SOFTWARE MAINTENANCE, WHICH IS MAKING UP THAT 20%. THE SERVICE LEVEL REQUESTS THAT ARE FUNDED. ONE IS THE FIRST IS THE SENIOR IT SUPPORT SPECIALIST FOR OUR END USER SUPPORT. CURRENTLY, I THINK WE ONLY HAVE FOUR PERSONNEL IN THAT SUPPORTING 1200 EMPLOYEES. SO THIS IS AN ADDITION THERE SUPPORTING OUR IT MASTER PLAN. THERE'S AN UPGRADE FROM THE GMC TO SOUTHEAST INNER LOOP. IT IS PART OF OUR MASTER PLAN. AND THIS WILL ALSO SUPPORT REDUNDANCY TO THE DATA CENTER. 
          AND THEN SOME FUNDING FOR UNPLANNED FIBER OPTIC PROJECTS. SO ANYTIME ELECTRIC UTILITY POLES ARE MOVED, IT HAS TO GO OUT AND, AND REROUTE AND MOVE FIBER. SO AND SOMETIMES THAT'S JUST UNPLANNED AND THERE'S NOT REALLY MONEY ATTRIBUTED TO DO THAT. SO THIS COVERS THAT FOR PUBLIC SAFETY. THIS IS MOVING WATCHGUARD MIGRATION TO THE CLOUD. SO THAT IS ALL OF OUR BODY CAMERAS AND IN-CAR CAMERAS WERE BEING PUSHED TO THE CLOUD FOR THAT. AND THEN THERE IS THE DATA CENTER BUILD OUT, WHICH IS 3.7. AND THEN AN ADDITIONAL NETWORK ADMINISTRATOR. AND THAT IS THE IT FUND. I'M HAPPY TO ANSWER ANY QUESTIONS. OKAY. NEXT UP IS THE TOURISM FUND. SO. 
          JUST AS A REMINDER, THE PRIMARY FUNDING FOR THE TOURISM FUND COMES FROM THE HOTEL OCCUPANCY TAX. AND THE LOCAL HOT TAX RATE HERE IN GEORGETOWN IS 7% OF A ROOM RATE THAT'S PAID. SO FY 2026 REVENUE PROJECTIONS ARE 18.3% UNDER BUDGET. THIS WAS THIS WAS BASED ON INFORMATION WE HAD A COUPLE MONTHS AGO IN TERMS OF HOW OUR ROOM STAYS WERE GOING. WE HAVE SOME SOME NEW DATA. SO WE HAD SOME ISSUES WITH OCCUPANCY AT OUR HOTELS AT THE START OF THE FISCAL YEAR. 
          THAT'S ACTUALLY TRENDED UPWARDS IN A REALLY POSITIVE WAY HERE OVER THE PAST SEVERAL MONTHS. 
          SO WE'RE GOING TO ACTUALLY COME BACK AND UPDATE THESE PROJECTIONS FOR Y'ALL. WE'RE SHOWING ALMOST $600,000 UNDER BUDGET. WE PROBABLY WILL END UP BEING RIGHT AT BUDGET FOR FY 26. 
          JUST WANTED TO GIVE YOU THE LATEST UPDATE ON THAT. AND THEN FOR FY 27, NICK. YES. DOES THAT INCLUDE THE SHORT TERM RENTAL REVENUE AS WELL? YEAH, IT'S A COMBINATION OF OF HOTEL STAYS AND THEN STR REVENUE. OKAY. DO YOU KNOW WHAT THE STR REVENUE WAS FOR LAST. WE'RE PROJECTING I THINK WE'RE PROJECTING THIS YEAR RIGHT AROUND $200,000 TOTAL. OKAY. SO IT'S IT'S KIND OF STEADY AT THIS POINT, DEFINITELY BELOW WHAT WE WERE EXPECTING ORIGINALLY, BUT IT'S KIND OF STEADY AT THIS POINT, ABOUT $200,000. OKAY, GREAT. THANKS. YEAH. AND THEN FY 27, WE'RE PROJECTING THAT 7.54% OVER FY 26. AGAIN, THAT WILL THAT PERCENTAGE WILL LIKELY LOOK A LITTLE BIT DIFFERENT JUST BASED ON UPDATED FY 26 PROJECTIONS. AND THEN ON THE EXPENSE SIDE FOR FY 26, WE'VE GOT PROJECTIONS 5% UNDER BUDGET DUE TO VACANCY, SAVINGS AND SAVINGS AND CONSULTING. AND THEN IN FY 27, YOU'LL NOTICE A 47.7% OR $2.5 MILLION BUDGET. 
          THAT'S LESS THAN FY 26. THAT'S PRIMARILY DUE TO THE ONE TIME EXPENSE HERE IN THE CURRENT FISCAL YEAR FOR THE RENOVATION OF THE VISITOR CENTER. AND THEN WE'VE GOT ONE SERVICE LEVEL 
          [02:30:08]
REQUEST OUT OF TOURISM, AND THAT IS FOR THE ARTS CENTER INFORMATION SPECIALIST. WE CURRENTLY HAVE ONE PART TIME PERSON WHO KIND OF MANAGES THE DAY TO DAY CUSTOMER INTERACTIONS AT THE ART CENTER. THIS IS JUST ADDING A SECOND PART TIME PERSON, BASICALLY TO KEEP UP WITH THE WITH THE DEMAND THAT WE'RE SEEING. I MENTIONED EARLIER, THIS IS THE THIRD YEAR THAT THE CITY HAS MANAGED THE ART CENTER. WE'VE SEEN SIGNIFICANT INCREASES EVERY YEAR IN TERMS OF VISITORS TO THE ART CENTER. I THINK OUR FIRST YEAR IN 2024, WE SAW ABOUT 20,000 VISITORS. THIS YEAR WE'RE PROJECTING OR 2025, WE SAW 3000. WE'RE PROJECTING ALMOST 40,000 VISITORS TO THE ART CENTER THIS YEAR. SO OUR STAFF HAS DONE AN INCREDIBLE JOB. AND DUE TO THAT, WE KIND OF NEED AN ADDITIONAL PART TIME JUST TO KEEP UP WITH THE AMOUNT OF VISITORS THAT WE'RE SEEING COME INTO THE ART CENTER. ANY QUESTIONS ON TOURISM FUND? OKAY. 
          NEXT WE'VE GOT THE JETCO FUND. AS A REMINDER, THIS IS OUR OUR TYPE A ECONOMIC DEVELOPMENT SALES TAX. SO FOR FY 26, OUR REVENUE PROJECTIONS ARE 117,000 OR 3% OVER BUDGET. AND THAT IS PARTLY DUE TO SALES TAX BEING A LITTLE BIT UNDER BUDGET. AND THEN WHAT'S BRINGING US OVER IS PRIMARILY INTEREST INCOME IN THE FUND. NON-OPERATING REVENUE ARE FORECASTED TO COME IN AT BUDGET ON THE EXPENSE SIDE FOR FY 26. PROJECTIONS ARE DOWN BY 6%, AND THAT'S PRIMARILY DUE TO SAVINGS IN PROMOTIONAL MATERIALS, TRAVEL AND TRAINING. NON OPERATING EXPENSES ARE PROJECTED TO COME IN AT BUDGET. AND THEN TYPICALLY WHAT WE'LL DO. SO THIS FUND HAS A LOT OF OUR ECONOMIC DEVELOPMENT INCENTIVES THAT COME OUT OF IT. AND SO DEPENDING ON IF THEY THERE'S SOMETIMES A QUESTION ON WHEN THE PROJECT IS IS BUILT AND IS DUE THEIR INCENTIVE. SO THERE ARE SOME TIMES WHERE WE END UP ROLLING THOSE FUNDS TO THE NEXT YEAR, AND THEY'LL END UP GETTING PAID TO THE, TO THE DEVELOPMENT AT THAT POINT. AND THEN FOR FY 27 REVENUE, WE ARE LOOKING AT A 2% INCREASE OVER FY 26 PROJECTIONS. AND THAT'S PRIMARILY DUE TO SALES TAX, WHICH IS THE PRIMARY REVENUE SOURCE BEING 2% OVER PROJECTIONS. AND THEN NON-OPERATING REVENUE IS 40% UNDER THE BUDGET. AND THAT IS DUE TO OR THAT'S ALSO INCLUDES THE MISCELLANEOUS REIMBURSEMENTS FROM THE RIVER TOURS. AND THEN. 27 EXPENSE OUT OF JEFFCO. WE'VE GOT A 121,000 OR 13% INCREASE. THAT'S PRIMARILY DUE TO AN INCREASE IN JOINT SERVICES ALLOCATION. AND THEN THE NON-OPERATING EXPENSE SIDE IS $6.9 MILLION MORE THAN FY 26 PROJECTIONS. AGAIN, THAT'S DUE TO A COUPLE OF BIG PROJECTS THAT ARE DUE TO BE PAID OUT NEXT YEAR. THAT'S ALSO DUE TO A TRANSFER OF $3 MILLION FOR A ONE TIME TRANSFER FOR THE CUSTOMER SERVICE CENTER. SO IF YOU ALL REMEMBER, WE'VE GOT SOME GROUND FLOOR SPACE WITHIN THE CUSTOMER SERVICE CENTER. THAT WILL BE HOW THAT WILL HOUSE OUR ECONOMIC DEVELOPMENT TEAM. AND SO THAT IS TO MAKE THAT PAYMENT FOR THAT PORTION OF THE BUILDING. AND THEN FOR G TECH. SO G TECH IS OUR TYPE B ECONOMIC DEVELOPMENT. SALES TAX CAN ONLY BE USED FOR TRANSPORTATION RELATED IMPROVEMENTS. FY 26 REVENUE PROJECTION IS 8% OR $1,200 OVER THE FY 26 BUDGET. THAT IS. AND THEN WE'VE GOT SALES TAXES THAT'S FORECASTED SIMILAR TO TO GET COMING IN 1% UNDER BUDGET. AND THEN NON-OPERATING REVENUE IS IN LINE WITH THE BUDGET 26 EXPENSE PROJECTIONS. THE ON THE OPERATING SIDE, IT'S IT'S IN LINE WITH BUDGET. ON THE NON-OPERATING SIDE, IT IS 5% UNDER BUDGET. SO WE ALSO HAVE SOME INCENTIVE PAYMENTS THAT COME OUT OF NON-OPERATING IN G TECH. AND WE'VE GOT A FEW OF THOSE THAT WE PROJECT WILL NOT HAPPEN THIS YEAR AND WILL LIKELY BE MOVED INTO FY 27. AND THEN ON THE FY 27 REVENUE SIDE, WE'VE GOT AGAIN SIMILAR TO JED CO, THE 2% INCREASE IN SALES TAX. AND THEN ON THE NON-OPERATING SIDE, WE'VE GOT A MORE SIGNIFICANT INCREASE. AND THAT'S DUE TO BOND PROCEEDS FOR CIP PROJECTS. AND THEN THE LAST REIMBURSEMENT PAYMENT FOR THE RIVER TOURS. ON THE EXPENSE SIDE WE'VE GOT A 1% INCREASE THERE. AND THEN YOU'LL SEE A MORE SIGNIFICANT NON-OPERATING 
          [02:35:06]
EXPENSE CHANGE FOR THIS YEAR. AND THAT IS DUE TO, AGAIN, WE'VE GOT A COUPLE ECONOMIC DEVELOPMENT PROJECTS THAT SHIFTED FROM 26 TO 27. AND THEN WE'VE JUST GOT A NUMBER OF CHANGES IN CAPITAL PROJECTS, WHICH YOU'LL SEE IN JUST A MOMENT. SO THIS NUMBER, THIS SLIDE WILL, WILL LIKELY CHANGE SLIGHTLY WHEN WE COME BACK TO YOU WITH THE THE FINAL BUDGET PROPOSAL. WE'VE HAD SOME UPDATED COST NUMBERS SINCE THIS WAS WAS PUT TOGETHER. BUT THE THE PRIMARY PROJECTS THAT WE'LL SEE NEXT YEAR OUT OF G TECH INCLUDE THE NEXT PHASE OF IMPROVEMENTS TO AUSTIN AVENUE. WE'VE GOT THE SOUTHWESTERN 560 PROJECT. WE'VE GOT THE NINTH OF MAIN PARKING GARAGE. PROJECT SPUR 26 IS BASICALLY AUSTIN AVENUE FROM LEANDER ROAD TO SOUTHEAST INNER LOOP. THAT'S A PARTNERSHIP PROJECT WITH TXDOT FOR IMPROVEMENT TO THAT, THAT PORTION OF THAT ROADWAY. AND THEN WE'LL HAVE THE THE FINAL PORTION OF THE WOLF RANCH PARKWAY PROJECT PAYMENT. HAPPY TO ANSWER ANY QUESTIONS. OKAY. THIS IS THE LAST FUND. AND THEN WE'LL WRAP UP SLIDES. AND I THINK JUST IN TIME FOR A MAYOR PRO TEM TO WALK IN THE ROOM BECAUSE HE'S. YEAH, EXACTLY. SO COUNCIL DISCRETIONARY FUND, YOU'LL RECALL THIS FUND IS BASICALLY WE TAKE EXCESS FUNDS OUT OF THE GENERAL FUND AT THE END OF THE YEAR AND MOVE THEM INTO THE INTO THE COUNCIL DISCRETIONARY FUND FOR THEM TO THEN BE USED FOR SPECIFIC PURPOSES AS DIRECTED BY COUNCIL. AS YOU LOOK AT 2026, WE HAD 700,000 TRANSFER TO THE GENERAL FUND. SO THAT'S BACK TO THE GENERAL FUND. THAT INCLUDES THE ILA LEASE AND SOME ECONOMIC DEVELOPMENT AGREEMENTS AND THE RIDESHARE PROGRAM. THAT'S THE PILOT PROGRAM THAT WE HAVE THIS YEAR AND HAVE IT HAVE IT PROPOSED FOR ONGOING REVENUE FOR THE NEXT YEAR AND NOT COMING OUT OF THIS COUNCIL DISCRETIONARY FUND, ANTICIPATE THE YEAR END TRANSFER TO BE ABOUT 500,000 FROM THE GENERAL FUND. SO ENDING FUND BALANCE OF 2.8 MILLION. AS YOU LOOK AT 2027, YOU SEE WHAT THE INTEREST EARNINGS ARE OF THAT OF THOSE DOLLARS. AND THEN WE ARE PROPOSING FOR THE LEASE ON THE, YOU KNOW, THE ILA INNER LOOP FACILITY AT 350,000. SO ENDING WITH THE FUND BALANCE OF 2.6 MILLION IN COUNCIL DISCRETIONARY. WITH THAT, WE THIS IS JUST A REMINDER TO SAY WE. AND YOU SAW US TALKING THROUGH THE BUDGET PRESENTATION, HOW WE'RE STILL CHECKING SOME REVENUES AND EXPENSES. SO WE'RE STILL WORKING TO LAND THE BUDGET PLANE. BUT BUT IT'S CLOSE. AND AGAIN, THIS IS INTENDED TO SHOW YOU HOW THE BUDGET SHAPING UP AS OF RIGHT NOW, KIND OF WHAT WE ANTICIPATE TO BEING OFFICIAL PROPOSALS TO YOU ALL FOR CONSIDERATION. ONE OF THE BIG PIECES FOR US IS TO GET THE FINAL TAX VALUE TAX ROLLS AT THE END OF JULY, SO THAT WILL HELP US AND THEN BE ABLE TO HAVE THE TRUTH AND TAXATION CALCULATION WITH THE FINAL PROPOSED TAX RATE. AND THEN AND THEN THE COUNCIL WILL BE REQUIRED TO SET THE MAXIMUM RATE. THAT DOESN'T MEAN YOU THAT'S THE RATE YOU HAVE TO ADOPT. THAT'S JUST THE MAXIMUM RATE YOU CAN ADOPT. AND SO WE'RE PREPARED TO WORK THROUGH THAT PROCESS IN JULY. AND AS WE PREPARE FOR THE BUDGET, THESE ARE JUST ALL THE WAYS IN WHICH WE'VE DONE PUBLIC OUTREACH OR CONTINUE TO TO HAVE INFORMATION OUT ABOUT THE PROPOSED BUDGET. 
          YOU CAN SEE HERE WE'LL HAVE OUR PUBLIC HEARING SCHEDULES IN IN AUGUST, AND THEN OBVIOUSLY HAVE THE FULLY ADOPTED BUDGET ON OUR WEBSITE, WITH NEWS RELEASES HIGHLIGHTING DIFFERENT COMPONENTS OF THE PROPOSED BUDGET. THIS IS JUST SHOWING YOU OUR PROPOSED BUDGET CALENDAR AS WE GO THROUGH JULY AND INTO AUGUST. SO YOU'LL SEE HERE THE FINAL TAX ROLL ON JULY 25TH, AND WE'LL FILE THE BUDGET WITH THE CITY SECRETARY IN COMPLIANCE WITH CITY CHARTER. 
          THE OFFICIAL PROPOSED BUDGET WILL BE SENT TO YOU, BOTH OF THOSE ON AUGUST 3RD. WE'LL HAVE A REGULAR COUNCIL MEETING. ON AUGUST 11TH, WE'LL PRESENT THE PROPOSED BUDGET, SET THE MAXIMUM TAX RATE AND SET DATES FOR PUBLIC HEARING. YOU CAN SEE HERE THOSE PUBLIC HEARINGS WILL BE HELD ON AUGUST 25TH, AND THE FIRST READING OF THE BUDGET OF THE TAX RATE AND RATES AND FEES AND FEES, RATES, THE FEE AND RATE ORDINANCES. AND THEN SEPTEMBER 8TH, WE'LL HAVE THE SECOND READING OF THE BUDGET, SECOND READING OF THE TAX RATE, AND ALSO THE ORDINANCES RELATED TO FEES AND RATES. HEY, DAVID, CAN YOU GO BACK TO THE CALENDAR? OF COURSE, JUST OUT OF KIND OF PURE CURIOSITY, IF WE WERE TO DO A TAX RATE ELECTION, WHERE IN THIS PROCESS WOULD WE HAVE TO CALL THAT ELECTION IN A FUTURE YEAR? IS IT IS IT IN JULY OR AUGUST? IT'S IN AUGUST. 
          I DON'T REMEMBER IF IT'S THE FIRST MEETING OR THE SECOND MEETING IN AUGUST. I DON'T KNOW 
          [02:40:03]
IF WE HAVE THAT. I BELIEVE IT'S YEAH, I'M JUST KIND OF WONDERING, I'M GOING TO SAY CONSERVATIVELY, IT'S THE FIRST MEETING IN AUGUST. OKAY. SO WE WOULD JUST BE GETTING THE TAX ROLLS. WE WOULD NOT HAVE SET THE RATE OR WE WOULD MAYBE AT THE SAME MEETING, WE'D BE SETTING THE RATE. OKAY. RIGHT. AND I THINK THE INTENT BEHIND BEING ABLE TO MOVE THIS MEETING BACK TO, YOU KNOW, TYPICALLY WE DON'T HAVE THIS REVIEW OF THE BUDGET UNTIL JULY UNTIL THE FIRST COUNCIL MEETING IN JULY. WE'VE WORKED AND APPRECIATE OUR THE WHOLE BUDGET, THE WHOLE BUDGET TEAM, AS WELL AS OUR CITY OPERATIONS, MOVING OUR BUDGET SCHEDULE UP SO THAT WE CAN HAVE THIS BRIEFING WITH YOU ALL IN JUNE. WE DO NOT ANTICIPATE REQUESTING THAT TAX RATE ELECTION THIS YEAR, BUT WE WANT TO TRY TO STAY THIS SCHEDULE MOVING FORWARD TO GIVE YOU MORE OPPORTUNITY TO REVIEW INITIAL THE INITIAL BUDGET, HAVE DISCUSSIONS ON TAX RATE. 
          IF IF THAT IS SOMETHING THAT WE BELIEVE WOULD BE SOMETHING REALLY IMPORTANT TO CONSIDER. 
          AND FOR YOU ALL, WHETHER IT'S SOMETHING YOU WOULD BE WILLING TO CONSIDER AND WALK THROUGH JULY, BASICALLY THE TWO MEETINGS IN JULY TO REALLY EVALUATE THAT FURTHER. AND SO AGAIN, SO THE SCHEDULE THAT WE HAVE NOW WHERE WE PROPOSE OR KIND OF HAVE OUR INITIAL BUDGET MEETING WITH YOU ALL TO KIND OF LOOK AT THE ENTIRE BUDGET AT THE END OF JUNE, IS INTENDED TO GIVE YOU MORE TIME SO THAT YOU CAN MAKE AN INFORMED DECISION WHEN YOU HAVE TO IN AUGUST. 
          GREAT. ANY OTHER QUESTIONS FOR DAVID OR ANY OF THE STAFF ON THE BUDGET? I DON'T HAVE ANY OTHER QUESTIONS. I JUST WANT TO SIMPLY SAY, FROM LISTENING AND WATCHING PREPARATION AND PRESENTATION TODAY, THIS BUDGET IS SIMPLY A RAILROAD TRACK TO DELIVER OUR PROGRAMS, AND I WANT TO EXPRESS MY APPRECIATION TO THE ENTIRE TEAM FOR THE WORK THAT'S GONE INTO IT, TO BRING IT TO US AS EARLY THIS EARLY IN JUNE. CONGRATULATIONS. YEAH, OUR INTENT, OUR INTENT BEHIND THIS. AND IF THE INTENT AND FOR ANYBODY WATCHING THIS FROM THE PUBLIC IS YOU ALL HAVE BEEN WORKING TO HELP GUIDE AND SHAPE WHAT THIS BUDGET LOOKS LIKE FROM, YOU KNOW, FROM REALLY THE ADOPTION OF THE BUDGET TO OF LAST YEAR UNTIL NOW OF DIFFERENT BRIEFINGS AND SESSIONS WE'VE HAD. SO, YOU KNOW, THIS IS A CUMULATION OF, YOU KNOW, CAPITAL PROJECT WORK PLANNING FOR COST OF SERVICE, HAVING BRIEFINGS ON OPERATIONS. SO, YOU KNOW, THE INTENT IS FOR THIS, BUT THERE NOT TO BE A LOT OF SURPRISES IN THIS BUDGET BECAUSE BECAUSE YOU ALL HAVE BEEN ENGAGED IN THE MAJOR WORK OF THE CITY AND GIVING FEEDBACK AND DIRECTION SO THAT THIS IS ACCUMULATION OF ALL OF THAT WORK COMING TOGETHER, RIGHT? SO THAT'S THE INTENT BEHIND THE PROPOSED BUDGET. AND I APPRECIATE THE FEEDBACK. COUNCILMEMBER GARLAND YEAH, I WOULD JUST LIKE TO ECHO THAT AND SAY THAT SOMETIMES I FEEL LIKE I WANT THERE TO BE MORE QUESTIONS FOR LEE AND HER TEAM, BUT I AND FOR DAVID. BUT I HOPE THAT THEY TAKE THAT AS WE SEE ALL OF THIS, YOU KNOW, WEEK IN AND WEEK OUT AT WORKSHOPS. AND WE'RE PREPARED FOR ALL OF THIS. 
          AND SO AS I LOOK THROUGH IT, I DIDN'T SEE ANY REALLY. I CAN COME UP WITH SOME QUESTIONS IF YOU WANT ME TO JUST MAKE UP THINGS. BUT, BUT Y'ALL DO SUCH A GREAT JOB AND WE APPRECIATE THAT, THAT THERE REALLY AREN'T ANY QUESTIONS OR ANYTHING THAT I'M SURPRISED BY. SO THANK YOU SO MUCH FOR YOUR WORK. AND I WILL SAY FOR THE RECORD THIS YEAR, Y'ALL LOOK BEAUTIFUL IN YOUR VERY, VERY, VERY, VERY BRIGHT TEAL, BEAUTIFUL COLORS, INCLUDING DAVID. I FEEL VERY THANKFUL THAT I WAS INCLUDED IN THE. YEAH, THE COLOR COORDINATION THIS YEAR. AND, AND FOR THE RECORD, I DID NOT OWN THIS TIE BEFORE THIS BRIEFING, I, I BOUGHT IT FOR THIS. YOU HAD THE OTHER OUTFIT THAT YOU CAN WEAR FOR THE FORMAL COUNCIL MEETING. WE'LL 
          [Executive Session]
BRING THAT OUT LATER. ALL RIGHT. WE'RE GOING TO RECESS INTO EXECUTIVE SESSION TO COVER. 
          SORRY. SECTIONS
* This transcript was compiled from uncorrected Closed Captioning.