[Budget Work Session on July 23, 2024.]
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CITY OF LEAGUE CITY, UH, THE COUNCIL OF CITY OF LEAGUE CITY TEXAS WILL NOW COME TO ORDER IN A BUDGET WORKSHOP ON JULY 23RD, 2024 AT 5:00 PM UH, ROLL CALL MEMBERS.
UH, PUBLIC COMMENTS? NO ONE'S.
DISCUSSION REGARDING THE CITY OF LEAGUE CITY, PROPOSED FY 2025 BUDGET AND FY 2025 THROUGH 29 CAPITAL IMPROVEMENT PROGRAM.
GOOD EVENING, MAYOR AND COUNCIL.
TONIGHT WE'RE GONNA DISCUSS THE FY 2025 PROPOSED BUDGET.
UH, TONIGHT WE'RE PREPARED TO DO AN OVERVIEW, AN OVERVIEW.
UM, WE ARE ABLE TO TAKE QUESTIONS AT THE END OR DURING THE PRESENTATION.
UM, WE ARE NOT, UM, WE DON'T HAVE IT SCHEDULED AT THIS TIME CURRENTLY TO GO DEPARTMENT BY DEPARTMENT, BUT WE DO HAVE REPRESENTATIVES FROM EACH DEPARTMENT IN THE AUDIENCE.
THE 2025 PROPOSED BUDGET WAS PREPARED, UM, BASED ON OUR, UM, STRATEGIC GOALS.
UM, WHEN LOOKING AT TOP REVENUE SOURCES, WE DO HAVE PROPERTY TAX, WHICH EQUALS 41.15 MILLION IN THE GENERAL FUND AND ADDITIONAL 8 MILLION IN THE DEBT SERVICE.
WHEN LOOKING AT THIS, UH, REVENUE CITYWIDE, IT'S ABOUT 28% OF OVERALL REVENUES.
SALES TAXES, 30% OF GENERAL FUND REVENUES, AND WE HAVE IT ESTIMATED AT A LITTLE OVER 31 MILLION.
AND WATER AND WASTEWATER CELLS ARE A LITTLE OVER 49 MILLION AND THAT MAKES UP ADDITIONAL 28% CITYWIDE AND 96% OF THE UTILITY FUND.
ON THE SCREEN, THERE'S A CHART FOR THE PROPERTY TAX VALUES.
UM, THESE ARE BASED ON, UH, PRELIMINARY VALUES.
THEY'RE ESTIMATED AT 13.45 BILLION.
UH, WHEN PREPARING, UH, THE, THE PROPOSED BUDGET FOR 25, WE DO HAVE TO ESTIMATE WHAT WE THINK THE PROPERTY TAX RATE WOULD BE BASED ON THE REVENUE THAT WE SHOW IN THAT PROPOSED DOCUMENT.
WITH THE INFORMATION THAT WE HAVE CURRENTLY PRIOR TO RECEIVING OUR CERTIFIED ROLES, WE DO HAVE THE RATE ESTIMATED AT 0.373.
UM, THIS IS SOMETHING THAT WILL BE, UH, CALCULATED AT THE END OF THE MONTH.
FIRST PART OF AUGUST, WE WILL BE BRINGING FORWARD A SPECIAL MEETING AUGUST 6TH, UM, TO EXPLAIN TO THE COUNCIL KIND OF WHAT THE CERTIFIED ROLE LOOKS LIKE AND GIVE THEM ALL THE INFORMATION ON WHAT THE NO NEW REVENUE RATE ACTUALLY IS AND ALSO THE VOTER APPROVAL RATE.
UM, IS THAT COMPARING ONLY EXISTING DEVELOPED PROPERTIES OR DOES THAT GROWTH FROM 2023 INCLUDE THE NEW GROWTH TOO? IT'S BASED ON PRELIMINARY ROLES THAT WE RECEIVE FROM THE CAD IN APRIL.
SO IT DOES INCLUDE ANY NEW PROPERTIES THAT THEY KNOW OF.
BUT IT'S PRIOR TO ANY PROTESTS THAT HAD BEEN FILED WITH THE MAY DEADLINE.
UM, JUST HISTORICALLY SINCE 2010 OF WHAT THE, UH, TOTAL PROPERTY TAX RATE IS, THE HOMESTEAD EXEMPTION, YOU CAN SEE IT'S INCREASED FROM 10% ALL THE WAY TO 20% CURRENTLY THAT IS THE MAX.
AND THEN WHAT THAT EFFECTIVE HOMESTEAD RATE IS THERE ON THE FAR RIGHT WITH THE ESTIMATED 37.3, THEN UM, THAT EFFECTIVELY WITH THE 20% HOMESTEAD MAKES IT 29.84 IS THE RATE, BUT AS I MENTIONED, THIS WILL BE MORE SOLIDIFIED IN NEXT WEEK AND THE WEEK AFTER NEXT, LOOKING AT SALES TAX.
SO HISTORICALLY SALES TAX HAS AVERAGED ABOUT 8% ANNUALLY.
UM, INCLUDED IN THE 25 BUDGET, UH, WHEN IT WAS PREPARED, WE WERE PROJECTING, UH, 20 FOURS YEAR END AT 29.32 MILLION OR ABOUT 200,000 OVER BUDGET AT THAT TIME.
THAT WAS LIKE THE MARCH TIMEFRAME.
UH, CURRENTLY WITH JULY'S RECEIPTS, THAT IS EIGHT MONTHS OF COLLECTION AND WE ARE CURRENTLY LOOKING AT 2024, ENDING THE YEAR AT ABOUT 94,000 UNDER BUDGET.
WE HAVE SEEN A DECLINING, UH, RECEIPTS IN THE MOST, UH, CURRENT, UH, MONTHS THAT WE'VE
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RECEIVED SINCE MARCH.UM, AND SO WHEN WE LOOK AT THAT COMPARED TO THE AMOUNT THAT WE INCLUDED FOR SALES TAX IN THE 25 BUDGET, THAT PUTS US AT ABOUT A 7% OVER WHAT WE CURRENTLY ESTIMATE FOR OUR 24 YEAR IN ESTIMATE.
SO IT'S STILL JUST SLIGHTLY UNDER THE HISTORICAL AVERAGES.
LOOKING AT UTILITY REVENUE, UH, THE WATER UTILITY REVENUES BUDGETED AT 49.03 MILLION.
THAT INCLUDES WATER AND WASTEWATER FEES AND THAT IS, UM, JUST BARELY THE CITY'S SECOND LARGEST, UH, SOURCE OF REVENUE JUST BEHIND, UH, PROPERTY TAX.
AND THE PROPOSED BUDGET IS ABOUT A 6.6% INCREASE OVER AND ABOVE WHAT WE ESTIMATE THE 24 YEAR IN ESTIMATE WILL BE FOR REVENUES.
THIS DOES MIRROR WHAT WE SHOWED IN THE LONG RANGE FINANCIAL FORECAST.
SO NOW WE'RE GONNA TRANSITION A LITTLE BIT TO EXPENSES.
SO THIS IS A CHART THAT SHOWS CITYWIDE EXPENSES.
WE HAVE NETTED OUT THE TRANSFERS BETWEEN THE FUNDS TO TRY TO, UM, MINIMIZE HOW MUCH WE DUPLICATE UH, THE SAME EXPENSES IN DIFFERENT FUNDS.
UH, THIS CHART HERE IS IN THE SUMMARY OF EXPENDITURES IN THE FRONT SECTION OF YOUR PROPOSED BOOK.
IF YOU WOULD LIKE TO LOOK AT THAT OR TO READ ABOUT IT MORE IN DEPTH.
CITYWIDE WHAT'S INCLUDED IS FUNDING FOR 2.5% MERIT.
THAT IS BASED ON PERFORMANCE AND ALSO AN ADDITIONAL 2% COST OF LIVING.
UH, THAT WOULD BE A RAISE AND BOTH OF THOSE WOULD BE DISTRIBUTED IN JANUARY OF 2025.
ALSO INCLUDED IN THE CITYWIDE IS AN ACROSS THE BOARD 3.5% COST OF LIVING INCREASE FOR CIVIL SERVICE POLICE OFFICERS AND THE BUDGET NEEDED TO UH, PAY OUT THE STEP RAISES FOR POLICE OFFICERS THAT IS IN ACCORDANCE WITH THEIR PAY PLAN.
THERE'S AN ADDITIONAL $60,000 TO IMPLEMENT RECOMMENDATIONS FROM HR FOR SELECT POSITIONS TO GET INCREASES BASED ON MARKET COMPARISONS.
THERE'S ALSO FUNDING FOR A NEW PROGRAM, A $5 AN HOUR PREMIUM PAY FOR EMPLOYEES THAT WORK ANY OF THE 10 RECOGNIZED CITY HOLIDAYS.
THERE'S CONTINUATION OF FUNDING FOR THE REINVESTMENT PROGRAM, BOTH ON THE TAX SUPPORTED AND THE REVENUE SUPPORTED SIDE.
THERE'S, UH, ESTIMATED INCREASES IN PROPERTY INSURANCE, WINDSTORM INSURANCE OVER WHAT WE ESTIMATE FOR A 24 YEAR IN ESTIMATES.
AND THOSE ARE ALL THE THINGS THAT ARE CITYWIDE.
WE INCLUDED A CHART ON NEW POSITIONS.
ONE OF THOSE IS A UTILITY FUND.
THE OTHER 13 ARE GONNA BE IN GENERAL FUND.
WE DO HAVE SOME START DATES THERE TO THE FAR RIGHT THAT ARE MARKED FOR JANUARY.
WE ALSO HAVE FUNDING FOR SLICK SIX RECLASSIFICATIONS OF POSITIONS IN THE GENERAL FUND.
WE HAVE FOUR PARAMEDICS TO SHIFT LIEUTENANTS, THAT'S ONE PER SHIFT.
RECLASSING A FIRE MARSHAL PUBLIC EDUCATION SPECIALIST TO FIRE TRAINING CAPTAIN FOR THE FIRE DEPARTMENT AND RECLASSING A UH, VOLUNTEER COORDINATOR IN THE LIBRARY TO A LIBRARIAN.
NEW VEHICLES, THIS IS OUTSIDE OF REPLACEMENT.
THIS WOULD BE ADDITIONS TO THE FLEET FOR FACILITIES.
WE HAVE A F-150 EXTENDED CAB AND ALSO ANOTHER ONE FOR WASTEWATER.
I BELIEVE THAT BOTH OF THOSE ARE FOR GENERAL, UM, STAFF USE FOR THOSE DEPARTMENTS.
IF YOU'RE INTERESTED IN THE VEHICLE REPLACEMENT.
UM, AND WHAT'S UP FOR REPLACEMENT, YOU CAN FIND THAT IN THE BOOK BEHIND THE INTERNAL SERVICE TAB ON PAGE 3 34.
I DON'T HAVE A SLIDE ON IT TONIGHT, BUT I DID UH, KNOW THAT THAT'S SOMETHING THAT UH, SEVERAL COUNCIL MEMBERS HAVE ASKED QUESTIONS ABOUT IN THE PAST.
SO WE'VE COVERED THE REVENUES AND WE'VE COVERED ALL OF THE EXPENSES INCLUDED THAT ARE PRETTY MUCH CITYWIDE.
SO I WANTED TO TALK ABOUT SOME THINGS THAT ARE INCLUDED SPECIFIC TO DIFFERENT FUNDS.
SO ON THE SCREEN YOU CAN SEE THAT WE HAVE THE SCHEDULE FOR THE GENERAL FUND, THE FAR RIGHT COLUMN BEING THE PROPOSED BUDGET FOR 25 TOTALS.
IN THOSE NUMBERS, WE HAVE ANTICIPATED INCREASES OF ABOUT $460,000 THAT'S IN SOLID WASTE.
THAT'S FOR THE INCREASED COST OF SERVICE AND GROWTH IN THE NUMBER OF HOUSEHOLDS SERVICED, WHICH IS OFFSET BY SOLID WASTE COLLECTION REVENUE.
WE ALSO HAVE AN ADDITIONAL 200,000 FOR THE NOVEMBER, 2024 ELECTION EXPENSES, ALMOST $13,000 FUNDING FOR REPLACEMENT BALLISTIC VESTS WITH RIFLE PLATES FOR POLICE CANINE OFFICERS.
YEAR TWO FUNDING FOR FLOCK HOA GRANT PROGRAM OF $94,000.
AND WITH THE 24 AMOUNT THAT MAKES UP THE 200,000 THE COUNCIL HAD PREVIOUSLY APPROVED, WE HAVE A LITTLE OVER A HUNDRED THOUSAND FUNDING FOR INCREASED STAFFING FOR A SECOND STIPEND ENGINE.
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IN THE FIRE DEPARTMENT.WE HAVE A TOTAL OF 160,000 AND ADDITIONAL EMS EQUIPMENT.
THIS INCLUDES PORTABLE ULTRASOUND MACHINES, MECHANICAL CPR DEVICES AND SOME DEFIBRILLATORS.
WE HAVE $62,000 BODY CAMERAS FOR ANIMAL CONTROL AND EMS $130,000.
UH, ALMOST $26,000 IN HR FOR AN EMPLOYEE OPINION SURVEY.
$15,000 FOR A CONFLICT MONITOR, TESTER FOR TRAFFIC DIVISION, ABOUT $16,000 FOR THE LIBRARY'S SECOND FLOOR FURNISHINGS AND ALMOST 71,000 FOR SUPPLEMENTAL MOSQUITO CONTROL.
THERE'S ADDITIONAL, ADDITIONAL $3,000 FOR BAY RIDGE STORMWATER MAINTENANCE, 14,000 FOR A TRAILER FOR PARKS OPERATIONS.
AND THEN WE HAVE A 2000 GALLON UNLEADED FUELING CENTER.
UM, THAT'S GONNA BE AT THE P WALK, THE PUBLIC WORKS OPERATIONS CENTER.
IT'S GONNA BE SPLIT HALF AND HALF, HALF IN THE GENERAL FUND OF 42,500 AND THE REMAINING HALF IN THE UTILITY FUND.
SO MOVING TO THE UTILITY FUND, THE NUMBERS, UH, THE SCHEDULED STA ON THE SCREEN, THE 25 NUMBERS ARE ON THE FAR RIGHT.
SO ADDITIONS THAT ARE SPECIFIC TO THIS FUND IS THAT OTHER HALF OF THAT UNLEADED FUELING CENTER I HAD MENTIONED.
WATER CONTRACT PURCHASES INCREASE 448,000.
THERE'S 70,000 FOR A SPARE BOOSTER PUMP MOTOR FOR WATER PRODUCTION, 5,000 FOR PORTABLE GATE VALVE, OPERATED FOR LINE REPAIR AND 15,000 FOR TRANSMISSION LINE REPAIR.
LOOKING AT THE BALLPARK AND IT HAS SOME INCREASES IN 2025 OVER AND ABOVE WHAT WE HAVE FUNDED IN 24 YEAR TO DATE.
THERE'S 20,000 TO REPLACE RESTAURANT FLOORING, 300,000 FOR PARTIAL REPLACEMENT.
FIELD LIGHTING, 250,000 FOR SHADE STRUCTURES FOR THE STANDS.
25,000 TO REPLACE PLYWOOD LINING THE OUTFIELD.
AND THERE'S A PIECE OF EQUIPMENT, WHICH IS A SPREADER SPRAYER COMBO THAT'S ALMOST 17,000.
ALL OF THOSE NEW ADDITIONS ARE INCLUDED IN THE NUMBERS THAT YOU SEE ON THE SCREEN AND IN THE SECTION MARK, THE BALLPARK, IT DOES HAVE ITS OWN TAB IN THE BOOK IF YOU'RE LOOKING FOR IT.
THERE'S A COUPLE OF OTHER SPECIAL REVENUE FUNDS I WANTED TO POINT OUT BECAUSE THEY HAD, UM, SOME NEW ITEMS INCLUDED IN THE 24.
ONE OF THEM IS THE ASSET FORFEITURE FUND.
UM, THIS WOULD BE COMPLETELY BASED ON ANTICIPATED REVENUES, MEANING IF THE REVENUES DIDN'T COME IN, THEN THE EXPENSES WOULD NOT BE EXPENDED.
THERE IS A RESCUE VEHICLE FOR THE POLICE DEPARTMENT OF 485,000.
THERE'S EXPANSION OF EVIDENCE, SHELVING OF ABOUT 300,000 AND SOME NEW DRONES AT 28,000.
ALL OF THOSE FROM THE ASSET FORFEITURE FUND, WHICH THE SCHEDULES THERE ON THE SCREEN IF YOU'RE LOOKING FOR.
WHAT SECTION IS THAT IN AT, IN THE BOOK? IT'S BEHIND THE SPECIAL REVENUE TAB.
THERE'S ALSO A CHAPTER 59 SEIZURE FUND AND THERE IS $60,000 FOR A NEW INCINERATOR FOR EVIDENCE DISPOSAL FOR THE POLICE DEPARTMENT AS WELL.
WE ALSO HAVE THE NEW FIRE MITIGATION FUND, AND I INCLUDED THE SCHEDULE THERE ON THE SCREEN.
IT'S ALSO FOUND IN THE SPECIAL REVENUE FUNDS BASED ON ANTICIPATED REVENUE.
THERE'S A THERMAL IMAGERS 20,000 8,700 FOR GEAR FOR STIPEND CREWS, 8,000 FOR REPLACEMENT MATTRESSES AND COVERS.
20,000 FOR REPLACEMENT STA STATION FURNITURE FOR FIRE STATIONS, 19,000 FOR NOX KEYS AND 108,000 FOR BREATHING AIR COMPRESSORS FOR STATION ONE AND FIVE.
I DID NOT INCLUDE THE SCHEDULE, BUT JUST TO BE NOTED, THAT OPIOID FUND HAS A FUNDING OF 159,000 TO COVER THE EXPENSE OF TWO EMTS PARAMEDIC POSITIONS.
THEY WOULD BE ASSIGNED TO THE NEW MENTAL HEALTH UNIT AND THE POSITIONS WILL ASSIST IN MENTAL HEALTH EMERGENCIES, SUBSTANCE ABUSE DISORDERS AND DEESCALATION TECHNIQUES AND CRISIS INTERVENTION.
WE DO HAVE, UH, THE REST OF THE HOUR FOR QUESTIONS FROM THE COUNCIL.
I DID INCLUDE HERE AT THE END THE BUDGET SCHEDULE GOING FORWARD.
WE DO HAVE TIME BETWEEN NOW AND AUGUST 9TH FOR ANY COUNCIL MEMBER TO ME, AS MANY TIMES AS I'D LIKE ONE-ON-ONE MEETINGS WITH THE CITY MANAGER TO DISCUSS BUDGET AND CIP THE WORKSHOPS ARE GONNA BE A LITTLE BIT MORE ABBREVIATED.
SO IF YOU DO HAVE QUESTIONS, UM, PLEASE UH, GET WITH THE CITY MANAGER OR DRE OR MYSELF AND WE'LL GET YOU ON THE CALENDAR.
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ANOTHER WORK SESSION.THIS ONE'S GOING TO BE, UM, AT THE CIVIC CENTER FROM SIX UNTIL 8:00 PM AND IT'LL BE MOSTLY FOCUSED ON THE CIP, BUT WE WILL HAVE TIME AND IT WILL BE POSTED FOR BUDGET QUESTIONS AS WELL.
IF THE COUNCIL SO CHOOSES AUGUST THE SIXTH, WE HAVE A 5:00 PM WORK SESSION.
IT'LL BE BACK HERE IN THE CHAMBERS AND WE'RE GONNA HAVE A 6:00 PM SPECIAL MEETING.
THE WORK SESSION WILL BE ANSWERING BUDGET CIP QUESTIONS THAT WE'VE HAD TO DATE, DISCUSSING THE TAX ROLL AND THE TAX RATE AND GATHER FEEDBACK FOR THE BUDGET ORDINANCE.
THE SPECIAL MEETING AT 6:00 PM IS TO HOLD A BUDGET HEARING OR A PUBLIC HEARING ON THE BUDGET.
AND ALSO THAT NIGHT THE COUNCIL WILL BE ASKED TO PROPOSE A TAX RATE.
AND THIS IS AN ORDER TO MEET THE COUNTY TIMELINE SO THAT WHEN THE CITIZENS GET THE POSTCARD IN THE MAIL AND THEY GO TO THE WEBSITE, THERE'S ACTUAL DATA THERE FOR THEM TO LOOK AT.
AUGUST 13TH, WE HAVE ANOTHER 5:00 PM WORK SESSION HERE IN THE CHAMBERS.
WE WILL GATHER FEEDBACK FOR THE BUDGET ORDINANCE AND THE TAX RATE AND ANSWER ANY REMAINING QUESTIONS.
AND THEN TOWARDS THE END OF AUGUST ON THE 27TH, WE'LL HAVE THE OFFICIAL PUBLIC HEARING THAT'S REQUIRED BY LAW.
WE WILL HAVE THE FIRST READING OF THE BUDGET AND IT'LL BE FOLLOWED UP ON SEPTEMBER 10TH WITH THE, UM, SECOND READING OF THE BUDGET AND ADOPTION OF THE TAX RATE.
ANY QUESTIONS? ANYBODY HAS ANY QUESTIONS FOR ANGIE OR JOHN? SO ARE WE MOVING INTO QUESTIONS ON THE BUDGET NOW? OKAY.
UM, THIS ONE ISN'T SO MUCH A QUESTION.
UM, WITH LARRY MILLIKEN NO LONGER ON THE COUNCIL, SOMEONE HAS TO MAKE THIS REMINDER EVERY YEAR, UM, OUR ALLOTTED AMOUNT FOR REINVESTMENT.
SO THAT'S SIDEWALK REPAIR, ASPHALT REPAIR THINGS OF THOSE NATURE IS NOT THE AMOUNT THAT THE STUDY THAT WAS DONE IDENTIFIED IT SHOULD BE.
IN FACT, IT'S WELL SHORT OF IT.
UM, NOW THAT'S NOT ENTIRELY FAIR TO SAY WITH RESPECT TO THIS YEAR'S BUDGET BECAUSE THERE'S A LOT OF PROJECTS THAT WERE PASSED AS PART OF THE GO BOND THAT REALLY COULD BE CONSIDERED REINVESTMENT.
UM, SO SOME OF THE DEBT FINANCING THAT WE'RE MAKING, UM, IN THE BUDGET THIS YEAR ON THE GO BOND STUFF, UM, REALLY IS REINVESTMENT.
BUT THE CAUTION THAT I WANNA GIVE, AND IT'S ONE THAT LARRY GAVE US EVERY YEAR, IS THAT THE MORE YEARS THAT WE DON'T HAVE THAT REINVESTMENT NUMBER AT THE VALUE THE STUDY SAYS IT SHOULD BE AT IS THE MORE LIKELIHOOD THAT WE'RE GONNA HAVE A GEO BOND IN THE FUTURE WHERE WE HAVE TO ASK THE CITIZENS TO APPROVE DEBT TO PAY FOR REPAIRS THAT WE COULD BE HANDLING UNDER OUR REINVESTMENT PROGRAM.
UM, AGAIN, I I REALIZE IT'S A LITTLE UNFAIR TO US, MAYBE A LITTLE HEAVY SCRUTINY ON THE BUDGET, UM, RIGHT NOW GIVEN THAT WE ARE DOING A BUNCH WITH THE, THIS LAST ROUND OF, OF BOND PROJECTS.
BUT IT IS SOMETHING WE NEED TO KEEP IN MIND.
UM, WE'VE COME IN AT OR BELOW THE NO NEW REVENUE RATE EVERY YEAR.
UM, THAT IS GOING TO SOMEDAY BE A CHALLENGE TO DO WHILE ACTUALLY MAINTAINING OUR STUFF.
AND PART OF THE REASON WE'RE ABLE TO DO IT NOW, UM, WE ALWAYS TALK WHEN WE'RE CANDIDATES.
UM, AND I THINK THIS FITTING RIGHT NOW SINCE FILINGS OPEN FOR PEOPLE TO RUN FOR CITY COUNCIL.
UM, ONE OF THE COMMON MANTRAS, AND I SAID IT MYSELF WHEN I RAN, AND I WILL ADMIT NOW I SET IT OUT OF IGNORANCE, IS THAT, GEE, WE GOTTA MAKE SURE NEW GROWTH IS PAYING FOR NEW GROWTH.
AND FRANKLY, WE GO BEYOND THAT AND OUR NEW GROWTH PAYS FOR NEGLECTED MAINTENANCE OF OLD GROWTH.
AND WHEN WE HIT THE POINT WHERE THAT NEW GROWTH ISN'T HAPPENING ANYMORE, WE'RE GONNA HAVE SOME HARD DECISIONS TO MAKE AND WON'T BE ME, WON'T BE ANYONE ELSE UP HERE.
UH, 'CAUSE WE HAVE TERM LIMITS.
UM, AND WE NEED TO KEEP THAT IN MIND AS WE WORK THESE BUDGETS GOING FORWARD, ESPECIALLY WHEN WE HAVE THINGS AT OUR, UM, OUR DESIREMENTS THAT WE TRY TO ADD IN, UM, THROUGHOUT THE CYCLE WHILE STILL STAYING AT THE NO NEW REVENUE RATE.
SO WE HAVE THAT COMING UP, NOT THIS YEAR, NOT NEXT YEAR, NOT FIVE YEARS FROM NOW, BUT IT'S,
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IT'S GONNA HIT AND IT'S GONNA HIT HEAVY.UM, SO I HOPE WE KEEP THAT IN MIND AND FIGURE OUT HOW TO WORK IN THE REINVESTMENT AS REINVESTMENT FUNDING, UM, EVERY YEAR AS OPPOSED TO PUTTING IT OFF AND MAKING IT BOND PROJECTS.
AND THAT'S MY ASK FOR THE FUTURE.
I REALIZE I'M NOT ASKING FOR A CHANGE RIGHT NOW, BUT A CAUTION FOR THE FUTURE.
UM, JOHN, I DON'T KNOW THE, UM, THE NUMBERS OF THAT STUDY.
HOW FAR OFF ARE WE FROM THAT NOW? I DON'T EXPECT AN AN ANSWER RIGHT NOW, BUT DO YOU HAVE ANY ANYWHERE CLOSE? YEAH, SO IF I, IF WE CAN TALK, I'LL TALK ABOUT REINVESTMENT JUST FOR A SECOND AND A COUPLE THINGS THAT WE DO.
AND YOU KNOW, THE NUMBER THAT YOU ASKED FOR IS NORTH OF 25 MILLION.
IF YOU MAKE SOME ASSUMPTIONS SUCH AS INFRASTRUCTURE WILL LAST BETWEEN 40 AND 50 YEARS.
THE THING THAT KIND OF KEEPS US FROM BEING GROSSLY BEHIND, IF YOU THINK ABOUT LEAGUE CITY, YOU KNOW, 67% OF IT IS LESS THAN 20 YEARS OLD.
SO IT'S STILL MORE THAN HALF OF ITS USEFUL LIFE.
AND SO MOST OF OUR ROADS ARE IN PRETTY DECENT SHAPE.
YOU KNOW, WE'VE SPENT A LOT OF TIME AND MONEY INVESTING IN THE ASPHALT STREETS.
SOME TOTAL RECONSTRUCTIONS PRETTY THINGS LIKE CALDER AND GRISSOM, UH, THAT HAVE A LOT OF TRAFFIC AND THEN LIKE THE HISTORIC DISTRICT, UH, REGULAR MILL REPAIR AND OVERLAY TYPE PROGRAMS. AND SO WE'VE, LIKE I SAID, GENERALLY HAVE DONE OKAY WITH THAT.
THE OTHER THING WE DO AND WE TRY TO DO IT STRATEGICALLY IS WHEN WE LOOK AT, YOU KNOW, REV ACTUAL REVENUES COMPARED TO ACTUAL EXPENDITURES WHEN WE GET TO YEAR END, IF THERE'S UM, A SAVINGS ON THE EXPENDITURE SIDE, WE TRY TO PUSH SOME OF THAT MONEY BACK INTO THE REINVESTMENT PROGRAM.
WE DID THAT LAST YEAR AND THEN WE UM, OPEN THE BALLPARK SO WE TOOK THE SAME MILLION DOLLARS WE PUT IN THERE AND TOOK IT BACK OUT.
UH, THE OTHER THING WE'RE WE DO, AND I'LL BE, I'LL BE INTERESTED TO SEE WHAT IT LOOKS LIKE.
I HAVE CONCERN WITH THE OLDER SUBDIVISIONS IN THE CONCRETE STREETS, BUT WHEN I WATCH UM, WHAT THEY LOOK LIKE AFTER JODI'S CREWS HAVE BEEN IN THERE, I THINK WE'VE MADE AT LEAST SOME DIFFERENCE.
AND SO NOT IN THIS YEAR'S SURVEY, NOT IN THIS YEAR'S BUDGET, BUT IN THE 26TH BUDGET WE'LL DO A TOTAL STREET ASSESSMENT AGAIN FOR ALL THE STREETS THAT ARE OLDER THAN 20 YEARS OR OLDER THAN, YEAH, OLDER THAN 20 YEARS.
AND SO WE'LL GET A LOOK TO SEE IF WE GOT ANY VALUE OUTTA THAT.
'CAUSE WE DID WHOLE PANEL REPLACEMENT, BIG INTERSECTIONS AND THEY DRIVE A WHOLE LOT BETTER.
UH, WHAT IT DOESN'T GENERALLY DO IS IF WE'VE GOT A LOT OF DETERIORATION AT THE CURB LINE THAT, YOU KNOW, WE'VE GOT PONDING WATER AND DRAINAGE AND THOSE THINGS.
AND SO, YOU KNOW, I DON'T THINK WE'RE IN TROUBLE BUT I THINK THAT WE'VE GOTTA CONTINUE TO LOOK AT THAT AND YOU KNOW, AT SOME POINT WE'RE GONNA HAVE TO FIND SOME DOLLARS TO ADD TO THE REINVESTMENT PROGRAM.
SO TODAY, I DON'T RECALL IS IT 5 MILLION? WE MOVED TO REINVESTMENT THIS YEAR.
I'M ASKING HER NOW OFF THE, OFF THE CUFF.
SO SOMEWHERE BETWEEN FIVE AND $6 MILLION.
WHEN WE FIRST STARTED IT, WE WERE CLOSER TO SEVEN OR $8 MILLION PLUS WHAT WE INVESTED WITH THE UM, THE BOND PROGRAM OR OTHER CIP PROJECTS OR ACCOUNT MONEY OR ALL OF THOSE THINGS COMBINED.
UM, AND SO, YOU KNOW, WE'RE A LITTLE BIT ON THE LIGHT SIDE AND WE'LL SEE HOW THAT PROGRESSES.
JOHN FIVE, IT'S 5 MILLION IN REINVESTMENT AND ADDITIONAL TWO.
AND JUST GENERAL MISCELLANEOUS CASH TO CIP.
YEAH, SO IT'S TOTAL OF TOTAL OF SEVEN THAT WE USE FOR GENERAL FUND.
AND THEN WATER WASTEWATER HAS SEVERAL MILLION DOLLARS.
I BELIEVE IT'S NINE THIS YEAR.
UM, YOU KNOW, I'M ON PAGE I GUESS 41 AND I'M JUST LOOKING FOR THE REVENUE OVER UNDER.
AND WHAT IT LOOKS TO ME LIKE IS BASICALLY THERE'S A $3 MILLION DEFICIT.
IS THAT WHAT WE'RE SAYING FOR THIS PROPOSED BUDGET REVENUE'S OVER EXPENDITURES.
THIS IS FY 2025 PROPOSED BUDGET LAST LINE.
SO REVENUE OVER UNDER THAT'S 3 MILLION AND THEN IT HAS ENDING FUND BALANCES.
SO YOU'RE SAYING THAT'S OKAY 'CAUSE WE HAVE FUND BALANCE.
IS THAT WHAT THIS IS? I'M JUST TRYING TO, YOU'RE LOOKING AT A PDF AND SO CAN YOU GIVE ME THE PRINTED PAGE NUMBER? I THINK IT'S PDF PAGE 41.
I'M NOT SURE WHICH ACTUAL PAGE NUMBER IT IS IN THE BOOK.
IS THERE A PAGE NUMBER AT THE BOTTOM? I'M SORRY IT'S NOT NO THEY'RE NOT IN PDF.
NO, BUT IT'S HEADING FYI 2025 PROPOSED BUDGET FUND SUMMARY BY YEAR.
AND SO IT CITYWIDE OR IS IT GENERAL FUND? HMM? IS IT CITYWIDE OR GENERAL FUND? CAN YOU TELL IT'S BEGINNING FUND BALANCE IS THE TOP LINE AND THEN YOU HAVE REVENUE EXPENDITURES.
REVENUE EXPENDITURES OVER UNDER, I'M JUST TRYING TO GET A FEEL FOR IT.
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IT'S NOT JUST THE GENERAL YEAH.OH, I THINK I KNOW WHAT CHART YOU'RE LOOKING AT.
IT'S PAGE 31 IN THE BOOK, IN THE PRINTED BOOK.
SO, UM, SO ON THIS ONE, SO IT TAKES INTO CONSIDERATION EVERY FUND.
SO GENERAL FUND DEBT SERVICE, SPECIAL REVENUE FUNDS, UM, BALLPARK AND UTILITY FUND.
SO WHEN YOU COMBINE IT, IT DOES HAVE THAT MATH THAT'S IN THERE, BUT THAT IS NOT REPRESENTATIVE OF THE GENERAL FUND OR THE UTILITY FUND.
SO IF YOU USE, IF YOU LOOK AT DEBT SERVICE BY ITSELF, I BELIEVE WE TOOK SOME OF THE EXISTING FUND BALANCE AND USED IT TOWARDS NEXT YEAR'S EXPENDITURES BECAUSE WE DIDN'T WANT IT TO GROW.
AND SO WE HAD SOME THAT WE COULD USE THERE.
UM, SPECIAL REVENUE FUND WOULD BE SIMILAR IN THE SENSE THAT IF YOU BROUGHT IN REVENUE IN PAST YEARS, IT'S NOT GONNA SHOW AS A REVENUE THIS YEAR.
BUT THEN IF YOU'RE EXPENDING THOSE FUNDS THIS YEAR, EVEN THOUGH YOU HAVE MONEY IN THE FUND AND IT'S CASH, IT'S BEEN SITTING THERE, THEN THE EXPENDITURE'S GONNA BE HIGHER THAN THIS YEAR'S RECEIPT OF REVENUE.
AND SO IT ALSO WOULD BE A DECREASE IN THE REVENUE WHEN COMPARED TO EXPENDITURES.
SO JUST TO CLARIFY THE QUESTION THEN.
WHAT PAGE IS THAT ON? IS THE, SO AND THAT'S, AND THAT'S ALL I'M LOOKING FOR.
GENERAL FUND REVENUE OVER EXPENDITURE.
YOU KNOW, IT'S EVERY YEAR WE GET UP HERE WE NOD AND THAT'S REALLY ALL
AND SO YOU CAN SEE THAT YOUR UM, REVENUES ARE 300 AND SAY 16,000 LESS THAN THE EXPENDITURES FOR THE GENERAL FUND, FOR THE PROPOSED BUDGET AND THEN UTILITY FUND.
SO IF YOU'RE LOOKING ON THE PDF, THAT SHOULD BE PAGE 30.
ACTUALLY IT SHOULD BE 57 FOR YOU.
SO, AND AGAIN, EVERY YEAR WE COME UP HERE THERE'S ABOUT 16 NEW HEADS.
THERE'S A COUPLE OF DOZEN NEW CARS AND WE ALWAYS TEND TO COME IN AROUND BUDGET.
UM, THIS IS PRIMARILY THE REVENUE SIDE OF IT IS DRIVEN PRIMARILY BY SALES TAX ISN'T OR AT THE EXPANSION OF SALES TAX, ISN'T IT? OR IT'S, IS THAT, WOULD THAT BE A TRUE STATEMENT? A COMBINATION OF SALES? IT IS A COMBINATION, YEAH.
SO PROPERTY TAX IS ACTUALLY ESTIMATED TO DECREASE IN 25 WHEN YOU COMPARE IT TO 24.
AND THAT'S BECAUSE WE LOOKED AT WHAT THE REVENUE IS ESTIMATED TO BE IN 24.
WE ADDED THE VALUE THAT WE ESTIMATE FOR NEW PROPERTIES, BUT WE HAD TO DEDUCT THE AMOUNT THAT WE LOSE BECAUSE OF THE CLOSING OF TS TWO.
WHEN WE LOOK AT TOTAL PROPERTY TAX THAT WE ESTIMATE WE'LL GET IN 24 AND COMPARE THAT TO WHAT WE HAVE IN THIS BUDGET DOCUMENT IN FRONT OF YOU.
SO PROPERTY TAX IS NOT SHOWING AS AN INCREASE.
IT'S ACTUALLY A DECREASE CITYWIDE.
UM, YOU'RE GONNA HAVE AN INCREASE IN YOUR UTILITY REVENUE BECAUSE OF GROWTH AND, AND NEW PEOPLE, UH, COMING ON BOARD.
AND THEN WE ALSO HAVE A RATE INCREASE.
YOU'RE GONNA HAVE A GROWTH IN SALES TAX.
THAT 7% THAT I MENTIONED EARLIER.
WE ALSO HAVE ESTIMATED GROWTH IN THE BUILDING PERMITS 'CAUSE WE'RE SEEING MORE NEW HOMES.
UM, THOSE ARE REALLY THE MAIN AREAS THAT WE'RE GONNA SEE INCREASES IN OUR REVENUE.
BUT JUST YEAR OVER YEAR AS WE GO THROUGH THIS PROCESS, I'VE NOTICED THAT, YOU KNOW, YOU HAVE SALES TAX OR YOU HAVE SALES TAX STARTED.
IT SEEMS LIKE THE FIRST TIME I WAS ON COUNCIL WAS 10 MILLION AND NOW IT'S WHAT, 30? SO YEAH.
SO IS THAT WHAT'S I'M TRYING TO UNDERSTAND.
IT'S LIKE HOW CAN WE KEEP CONSISTENTLY GROWING THIS ORGANIZATION? SO, AND COMING IN UNDER BUDGET EVERY YEAR, A A, A COUPLE, A COUPLE THINGS.
SO SALES TAX IS A LITTLE BIT INFLATION PROOF, RIGHT? SO IT GROWS BASED ON JUST INFLATION IN GENERAL.
THE OTHER THING IS, AS A CITY WE GROW ANYWHERE FROM 1% TO 3%.
GROWTH IS PICKED UP A LITTLE BIT.
SO YOU GOT GROWTH OF MORE PEOPLE BUYING STUFF AND YOU'VE GOT INFLATION.
SO THAT DRIVES UP THE SALES TAX NUMBER.
THE OTHER PIECE OF THAT THAT WE SEE MORE CONSISTENTLY THE LAST COUPLE YEARS, NOT SO MUCH, BUT THIS NEXT YEAR WE PREDICT A THOUSAND NEW HOMES.
SO YOU HAVE THAT MANY NEW HOMES.
I USED, I I USED TO SAY THERE WAS ABOUT $3 MILLION OF A YEAR, A YEAR IN NEW REVENUE THAT ALLOWED US TO ADDRESS COMPENSATION,
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NEW PROGRAMS AND NEW STAFF.AND SO THIS YEAR'S A LITTLE, UH, IT'S A LITTLE BIT DIFFERENT.
IT'S STILL PRETTY, IT'S A COUPLE MILLION DOLLARS.
UM, BUT YOU KNOW, WE LOPPED OFF AN EXPENSE WHICH WAS TUR TWO, BUT WE HAD TO LOP OFF THAT REVENUE AT THE SAME TIME.
BUT THAT'S WHAT ALLOWS THE GROWTH IN THE BUDGET IS THAT THERE'S JUST NATURAL GROWTH FROM INFLATION AND ADDING THE NEW HOMES.
AND THEN THE BUILDING PERMITS, WE WERE AROUND THREE LAST YEAR.
I DON'T RECALL THE TWO YEARS PRIOR.
YES, THIS YEAR, 2025 WE'LL SEE A THOUSAND ISH NEW HOMES.
AND SO THAT'S GETTING PRETTY SIGNIFICANT.
NO OTHER QUESTIONS? OKAY, THAT, UH, 5:30 PM THERE BEING NO FURTHER MEETING, UH, UH, BUSINESS AS MEETINGS ADJOURNED.