[Budget Work Session on July 22, 2025.]
[00:00:07]
THE CITY COUNCIL OF THE CITY OF LEAGUE STATE TEXAS WILL NOW COME TO ORDER IN A BUDGET WORKSHOP ON JULY 22ND, 2025 AT FIVE 30.
AND MANN, THIS IS TOMMY CONES HERE.
AND THEN THE FIRST ITEM UP IS PUBLIC COMMENTS.
AND SO WE'LL MOVE INTO DISCUSSION REGARDING THE CITY OF LEAGUE CITY PROPOSED FY 2026 BUDGET AND FY 2026 THROUGH 2030 CAPITAL IMPROVEMENT PROGRAM.
GOOD EVENING, MAYOR AND COUNSEL.
UM, WE'RE GONNA DISCUSS THE FY 2026 PROPOSED BUDGET WITH VERY HIGH LEVEL, UH, QUICK PRESENTATION.
THERE'LL BE TIME FOR DISCUSSION AND QUESTIONS AFTER, AND IF YOU HAVE QUESTIONS DURING THE PRESENTATION, FEEL FREE TO STOP ME.
SO FIRST WE'RE GONNA TALK ABOUT TOP REVENUE SOURCES.
SO CITYWIDE REVENUE, UH, FOR 2026.
WE ACTUALLY ESTIMATE THAT WATER AND WASTEWATER SALES WILL BE OUR LARGEST SOURCE OF REVENUE FOR THE FIRST TIME, FOLLOWED BY PROPERTY TAX AND THEN SELLS TAX.
SPEAKING OF PROPERTY TAX, UH, WE ESTIMATE THAT IT WILL BE 39% OF THE GENERAL FUND REVENUE AND 27% OF THE CITYWIDE.
THE UH, FY 26 PROPOSED BUDGET IS BASED UPON THE 2025 PRELIMINARY TAXABLE VALUES.
THEY'RE ESTIMATED AT 13.59 BILLION.
THAT'S AN INCREASE OF 1.4% OVER HER LAST YEAR'S VALUES OF 13.4.
WE EXPECT CERTIFIED ROLES AT THE END OF JULY.
THIS TAXABLE VALUE OF 13.59 BILLION DOES NOT INCLUDE THE INCREASE FOR SENIOR, SENIOR AND DISABLED EXEMPTIONS OF 200,000 THAT WE ANTICIPATE IN FY 2026, WHICH WILL LOWER THE TOTAL TAXABLE VALUE.
ANOTHER FACTOR THAT DECREASES THE TAXABLE VALUE IS SEVERAL APARTMENT COMPLEXES THAT HAVE BEEN PURCHASED BY A HOUSING FINANCE CORPORATION AND BEEN CONVERTED TO TAX EXEMPT STATUS.
NEW PROPERTY ADDED TO THE ROLE IS ESTIMATED AT 295 MILLION WITH AN ESTIMATED REVENUE OF JUST OVER $1 MILLION.
THE PROPOSED BUDGET WAS PREPARED BASED ON A PROPERTY TAX REVENUE OF 50.04 MILLION.
IT'S 1 MILLION MORE THAN THE CURRENT ESTIMATED TO BE RECEIVED IN FY 2025.
AND ALL OF THAT INCREASE IS ATTRIBUTED TO NEW PROPERTY.
AS I MENTIONED, THE NO NEW REVENUE TAX RATE AS SET FORTH IN SENATE BILL TWO WILL BE CALCULATED AT THE BEGINNING OF AUGUST AND COUNSEL WILL RECEIVE AN UPDATE ON THE OFFICIAL NO NEW REVENUE TAX RATE AND ANY IMPACT.
THE RATE AND SUBSEQUENT PROPERTY TAX REVENUE ESTIMATED FROM THE RATE WE'LL HAVE ON THE 26 PROPOSED BUDGET.
LOOKING AT CITYWIDE EXPENSES, WE'RE GONNA DO REALLY HIGH LEVEL.
UM, THERE IS A CONTINUATION OF OUR REINVESTMENT PROGRAM BOTH ON THE TAX SUPPORTED AND THE UTILITY SIDE.
PART OF THAT UH, TRANSFER IS $3 MILLION TO PURCHASE THE EXISTING STREETLIGHTS FROM TEXAS NEW MEXICO POWER 1.5 MILLION COMES FROM THE GENERAL FUND AND 1.5 MILLION FROM HURRICANE HARVEY FUND BALANCE.
WE ALSO HAVE SEVERAL ITEMS FOR EMPLOYEE COMPENSATION.
SO FOR CIVIL SERVICE, WHICH IS OUR POLICE, WE HAVE CONTINUED STEPPED RAISES FOR OFFICERS IN ACCORDANCE WITH THEIR PAY PLAN.
AND ACROSS THE BOARD, THREE AND A HALF PERCENT COST OF LIVING AND THAT'S FOR POLICE OFFICERS AS WELL.
ALL CIVIL SERVICE, THERE'S ALSO FUNDING OF A LITTLE OVER 300,000, WHICH REPRESENTS APPROXIMATELY 2% TO IMPLEMENT RECOMMENDATIONS, UM, FROM MARKET COMPARISONS FOR POLICE OFFICERS, SERGEANTS AND LIEUTENANTS IN JANUARY, 2026.
THERE'S ALSO FUNDING FOR A $3 PER HOUR INCREASE FOR PREMIUM PAY FOR EMPLOYEES THAT WORK ANY OF THE 10 RECOGNIZED CITY HOLIDAYS.
CURRENTLY, THAT PAY IS AT $5 AN HOUR AND IT WOULD INCREASE TO $8 AN HOUR.
CONTINUING FOR CIVIL SERVICE, THERE'S FUNDING OF A 1% INCREASE TO IMPLEMENT A LATERAL HIRING PROGRAM FOR OFFICERS, WHICH COMPENSATES FOR TIME WORKED AT ANOTHER AGENCY'S DEPARTMENT.
THERE'S ALSO FUNDING FOR THREE POSITIONS THAT WERE APPROVED IN THE 25 OR CURRENT YEAR BUDGET.
THOSE FTES HAVE ALREADY BEEN APPROVED, BUT THE GRANT THAT WAS ANTICIPATED FOR THE FUNDING OF THOSE POSITIONS WAS NOT AWARDED.
SO THE 26 BUDGET CONTINUES TO INCLUDE THOSE THREE POSITIONS AND WE ADDED FUNDING FROM THE GENERAL FUND SO THAT THOSE POSITIONS CAN BE FILLED IN FY 2026.
[00:05:06]
OKAY.GENERAL GOVERNMENT EMPLOYEE COMPENSATION.
SO NON-CIVIL SERVICE OR CIVILIAN EMPLOYEES.
THERE'S FUNDING FOR A 2% ACROSS THE BOARD COSTS OF LIVING FOR JANUARY, 2026.
THERE'S ALSO PERFORMANCE-BASED MERIT FUNDING OF TWO AND A HALF PERCENT FOR CIVILIAN EMPLOYEES WHOSE BASE SALARY IS UNDER 76,500.
AND THERE'S ALSO A SECOND TIER FOR SALARIES OVER 76 500 OF 1.5%.
ALSO PERFORMANCE BASED MERIT FUNDING.
THESE ARE FUNDING POOLS AND THE MERIT WOULD BE DISTRIBUTED BASED ON EVALUATION SCORES.
THE $3 AN HOUR INCREASE IN PREMIUM PAY FOR HOLIDAYS WORKED ALSO APPLIES TO CIVILIANS.
THERE'S ALSO A HUNDRED THOUSAND DOLLARS INCLUDED TO IMPLEMENT RECOMMENDATIONS, UM, BASED ON MARKET COMPARISONS FOR SPECIFIC POSITIONS WITHIN GENERAL GOVERNMENT.
ALSO IN JANUARY, 2026 IMPLEMENTATION.
AND THERE'S FUNDING FOR, UM, SPECIFICALLY FOR EMS FOR MARKET COMPARISON ADJUSTMENTS AS WELL.
I KNOW THE CHART IS HARD TO READ.
I HOPE THAT IT'S BETTER ON THE SCREEN IN FRONT OF YOU.
SO THIS BREAKS DOWN 10.5 FTES, MOST OF WHICH ARE IN THE GENERAL FUND.
THERE'S ONE IN THE UTILITY FUND AND THEN ONE IN THE, UH, SPECIAL REVENUE FUND.
SO THE POSITIONS ARE AS FOLLOWS.
WE'LL GO AND ORDER AS THEY ARE ON THE LIST.
INFORMATION TECHNOLOGY HAS A CYBERSECURITY AND NETWORK ENGINEER THAT'S A FULL-TIME POSITION.
WE HAVE A CHANGE IN AN EXISTING POSITION.
IT IS A MANAGER OF COMMUNITY ENGAGEMENT AND SPECIAL PROJECTS.
CURRENTLY THEY'RE BUDGETED A HUNDRED PERCENT IN COMMUNICATIONS.
WE RECOMMEND THAT WE SPLIT THEIR TIME HALF WITH PROJECT MANAGEMENT JUST BASED ON THEIR DUTIES.
THE POLICE DEPARTMENT, IN ADDITION TO THE THREE OFFICERS I MENTIONED ALREADY FROM THE CURRENT YEAR, HAS THREE ADDITIONAL.
ALL OF THOSE TOGETHER WOULD BASICALLY GIVE TWO ADDITIONAL PATROL OFFICERS AND A FOUR MAN SIU OR SPECIAL INVESTIGATIVES UNIT.
UM, A FOUR, WHICH INCLUDES A SERGEANT FIRE MARSHAL HAS A DEPUTY FIRE MARSHAL POSITION FULL-TIME.
EMS HAS A TOTAL FTE COUNT ADDITION OF 1.5, BUT IT AFFECTS SEVERAL POSITIONS.
SO THERE'S A PART-TIME EMS QUARTERMASTER.
THERE'S ONE FULL-TIME PARAMEDIC AND ONE FULL-TIME EMT.
THERE'S ALSO A, UH, DEDUCTION OF TWO PART-TIME PARAMEDICS, WHICH IS A MINUS ONE FTE.
THESE ARE POSITIONS THAT WE'VE HAD HISTORICALLY IN THE BUDGET AS WE BROUGHT ON THE PEAK TIME AMBULANCE.
WE HAVE NOT FILLED THOSE TO DATE.
WE'RE USING EITHER PRN OR FULL TIMES TO FILL THOSE.
SO WE REALIZED THAT WE COULD ACTUALLY TAKE AWAY THE FUNDING FOR THAT AND THE FTE AND THEN ADD THE ONES THAT WE NEED.
AND THAT WOULD BE AN ADDITIONAL 1.5.
WE ALSO HAVE ANOTHER DEDUCTION THAT'S IN THE COMMUNICATIONS DEPARTMENT.
THERE WAS A POSITION THAT WAS FILLED, UM, ONCE IT WAS VACATED, IT WAS DETERMINED BASED ON WORKLOAD THAT THAT POSITION DID NOT NEED TO BE REFILLED.
AND THEN THERE IS A PART-TIME STAFF WRITER THAT THE COMMUNICATIONS DEPARTMENT WOULD LIKE TO MAKE FULL-TIME.
AND SO THAT WOULD BE AN ADDITION OF 0.5.
AND THAT ADDITION WOULD BE A HUNDRED PERCENT HOT FUNDED.
HR HAS ONE FOR EMPLOYEE LEAD COORDINATOR.
PLANNING DEPARTMENT ALSO HAS ONE FOR AN ASSISTANT ADMINISTRATION.
PARKS RECREATION HAS 0.5 OR A PART-TIME RECREATION SPECIALIST FOR ADAPTIVE PROGRAMMING AND SPECIAL EVENTS.
SO A SPECIAL REVENUE FUND WOULD PAY FOR A PARKS MAINTENANCE CREW LEADER.
AND THEN THE ONE FOR UTILITY FUND IS A METER TECHNICIAN.
THE CHART SHOWS THE 12 NEW VEHICLES.
THE ONES THAT HAVE THE LITTLE SYMBOL THAT LOOKS LIKE A PERSON ARE TIED TO A NEW POSITION.
ONE IS UTILITY BILLING AND ONE IS IN THE BALLPARK.
SO THE BALLPARK IS NOT TIED TO AN INDIVIDUAL OR A NEW POSITION.
IT'S FOR GENERAL USE AT THE BALLPARK FOR THE, FOR THESE POLICE VEHICLES ARE ARE WE GETTING THE FORD EXPLORERS OR THE F1 FIFTIES? I KNOW THAT IT'S BEEN PREFERENCE, AT LEAST FROM WHAT I'VE BEEN TOLD BEFORE IS THAT FORD EXPLORERS ARE PREFERABLE.
BUT WE SEEM TO JUST KEEP GETTING THE F1 FIFTIES.
SO DO YOU KNOW IF WE'RE ACTUALLY GOING TO GET WHAT THE OFFICERS WOULD
[00:10:01]
LIKE? I BELIEVE IT'S BASED ON GO AHEAD SIR.SO THEY'RE ALL THE PROPOSED IS FORD EXPLORERS.
WE WENT TO THE F1 FIFTIES OR THE CHEVROLET PICKUP TRUCKS BECAUSE WE'VE BEEN UNABLE TO GET THE EXPLORERS.
I'M LOOKING AT THE ASSISTANT CHIEF BACK THERE AND I THINK OUR BELIEF IS WE CAN GET THE, WE CAN GET THE EXPLORERS THIS YEAR.
I KNOW FOR A FACT THAT THAT'S GONNA BEEN AN ISSUE BECAUSE WE'RE ACTUALLY GETTING FORD F TWO FIFTIES FOR US WHERE I WORK 'CAUSE THEY CAN'T GET THE, THEY HAVEN'T BEEN ABLE TO GET THE TAHOES AND SOME OF THE OTHER YEAH.
IT'S, IT'S GOTTEN A LITTLE, IT'S GOTTEN A LITTLE BETTER THIS YEAR THAN IT HAD BEEN IN THE SINCE COVID.
BUT, UH, WE CONTINUE TO TRY TO GET THE EXPLORERS IF WE CAN.
SO CONTINUING WITH THE NEW POSITION LIST.
SO, UH, THE BALLPARK IS NOT TIED TO A POSITION.
IT'S ACTUALLY FOR GENERAL USE AT THE BALLPARK.
THE ONE FOR UTILITY FUND THAT'S JUST UP FROM THAT, UM, IS FOR THE METER TECHNICIAN.
SO FOR POLICE, UH, THEY HAVE THE MOST NUMBER THAT ARE NOT TIED TO A NEW POSITION.
THERE'S THREE THAT WOULD, UM, ALLOW FOR THE CAPTAINS TO EACH HAVE AN ASSIGNED VEHICLE, WHICH THEY DON'T CURRENTLY HAVE.
AND THERE WOULD BE, UH, ONE FOR THE NEW SERGEANT AND THREE FOR THE NEW POSITIONS FOR THE SPECIAL INVESTIGATIVES UNIT.
THERE'S ALSO A NEW VEHICLE FOR THE FIRE MARSHAL DEPUTY FIRE MARSHAL POSITION.
AND THEN THERE IS FUNDING, UM, FOR A NEW AMBULANCE THAT WOULD BE AN ADDITIONAL PEAK TIME.
THE PARAMEDIC AND THE EMT YOU SAW IN THE NEW POSITION LIST ARE NOT TIED TO THIS NEW AMBULANCE.
THEY ARE BASICALLY TO FILL OUT WHAT WE'RE CURRENTLY DOING WITH CURRENT STAFFING AND SHIFTS.
ONCE THE NEW AMBULANCE IS RECEIVED IN 26, THE NEW POSITIONS FOR THAT PEAK TIME WOULD BE REQUESTED IN THE 27 BUDGET.
ANDY DOES THIS, ANGIE, DOES THIS INCLUDE ANY, UH, VEHICLE FOR THE ASSISTANT CHIEFS? NO, SIR.
SO CAPTAINS FOR THE, CAPTAINS FOR THREE CAPTAINS FOR THE POLICE DEPARTMENT.
ON THE, UH, FIRE MARSHAL, THE SILVERADO VERSUS THE F-150, IS IT, WHAT MAKES THAT SO MUCH MORE EXPENSIVE THAN SAY THE POLICE F-150? I BELIEVE IT HAS TO DO WITH THE EMERGENCY EQUIPMENT AND ALL OF THE THINGS IT HAS TO DO WITH THE POSITION, BUT I'LL LET THE FIRE CHIEF SPEAK TO THAT.
SO THE, SO THE F1 FIFTY'S ARE THE EXPLORERS ON THIS LIST? MM-HMM
SO THE, YOU KNOW, THE STREET CRIMES UNIT IS IN THE MARKED UNIT.
THE CAPTAIN'S UNITS AREN'T MARKED UNITS.
SO A FULLY OUTFITTED, YOU KNOW, POLICE UNIT IS PUSHING A HUNDRED THOUSAND DOLLARS NOW.
AND THEN THE SILVERADO VERSUS F-150, IT'S KIND OF WHICHEVER IS AVAILABLE.
WE'VE GONE BACK AND FORTH BETWEEN THE TWO OF THEM.
HEY JEFF, I KNOW YEARS AGO WE WERE LOOKING AT UH, SWITCHING TO THE RAMS. UM, WHATEVER BECAME OF THAT, WAS IT JUST NOT COST DIDN'T MAKE SENSE? AVAILABILITY? WHAT WAS THAT? I, I DON'T KNOW ON THAT.
I'D HAVE TO ASK YOU WITH FLEET TO FIND OUT.
I KNOW THAT THE TWO RAMS WE GOT WERE, UH, ONE WAS GRANT FUNDED AND IT WAS A TIME, TIME RESTRICTION IS WHY WE WENT THAT DIRECTION BECAUSE IT WAS AVAILABILITY AT THE TIME.
JEFF, IS THERE ANY REASON YOU WANT THE SILVERADO INSTEAD OF JUST STAYING WITH FORD? REALLY, IT, IT WOULD BE WHATEVER'S, WHICHEVER WOULD BE AVAILABLE, WHETHER IT BE A SILVERADO OR THE F-150, WE WOULD PREFER THE PICKUP TRUCK SO THAT WE CAN KEEP THE, I'LL SAY CONTAMINATED EQUIPMENT, YOU KNOW, THE, THE CANCER CARCINOGENS, UH, IN THE BACK SO THEY'RE NOT IN THE CAB OF THE VEHICLES.
UM, SO WE'VE TRANSITIONED TOWARDS THE TRUCKS AS SOME OF THAT CLEAN CAB.
SO WHAT WE'VE DISCUSSED UP TILL NOW HAS REALLY AFFECTED CITYWIDE EVEN THOUGH THERE'S A COMPONENT IN THE DIFFERENT DEPARTMENTS.
UM, SPECIFIC TO THE GENERAL FUND, I WANTED TO SHOW THAT SCHEDULE AND THAT THE FY 26 PROPOSED BUDGET, UH, PROPOSES 2.8 WORKING DAYS OF CAPITAL AT THE END OF THE YEAR.
WHEN WE LOOK UP AT EXPENSES, I'M JUST GONNA DO REALLY HIGH LEVEL AND IT'S FOR SURE NOT A COMPLETE LIST.
SO IF I LEAVE SOMEBODY'S NEW ITEM OUT, UM, THAT DOESN'T MEAN THAT IT'S NOT INCLUDED IN THE BUDGET FOR FIRE.
WE HAVE ADDITIONAL STIPEND PAY INCREASES AND ALSO ADDITIONAL PENSION INCREASES.
COMMUNICATIONS HAS FUNDING FOR, UM, UH, A DA COMPLIANCE THAT'S REQUIRED BY STATE LAW THAT STARTS IN JANUARY FOR MAKING OUR CITY'S WEBSITE, UM, TO BASICALLY REMEDIATE THE DOCUMENTS TO MAKE THEM A DA COMPLIANT.
WE ALREADY TALKED ABOUT, UH, PURCHASING THE EXISTING STREETLIGHTS FROM TEXAS NEW MEXICO FOR THE GENERAL FUND, THAT'S ONE AND A HALF MILLION.
[00:15:01]
THE WHOLE PROJECT IS 3 MILLION.UM, THERE'S ALSO 900,000 INCLUDED FOR POLICE MULTI-USE TRAINING FACILITY.
UM, AND THEN AN ADDITIONAL 300,000 FUNDING TO THE CAPITAL REPLACEMENT FUND IN ANTICIPATION OF FUTURE FIRE APPARATUS.
UM, THERE'S ALSO AN INCREASE OF ALMOST 400,000 FOR SOLID WASTE THAT'S OFFSET BY REVENUE.
POLICE HAS A VARIETY OF DIFFERENT TYPES OF EQUIPMENT.
UM, THEY'RE ALSO TRYING TO IMPROVE, UM, DIGITAL, UM, I'M PROBABLY GONNA GET IT WRONG, BUT IT'S LIKE DIGITAL EVIDENCE.
SO LIKE WHEN YOU HAVE A CRIME THAT HAS TO DO WITH LIKE A LAPTOP OR A TABLET OR A CELL PHONE, IT'S HAVING PEOPLE THAT ARE TRAINED IN ORDER TO, TO UH, DEAL WITH PULLING THE EVIDENCE OFF OF THAT DEVICE.
UM, THERE'S ALSO, THERE'S ALSO JUST FOR TO BE NOTED, UH, WE INCLUDED, UM, OVER HIRE AUTHORITY FOR TWO TELECOMMUNICATORS AND FOR POLICE OFFICERS, UH, TO TRY TO COMBAT NATURAL ATTRITION.
UH, EMS HAS AMBULANCE COMPUTER REPLACEMENTS AND A NEW STRETCHER.
UM, THERE'S ALSO FUNDING FOR CONTRACTING INTERNAL AUDIT SERVICES.
STREETS DEPARTMENT HAS A GRAPPLE BUCKET AND THEN ALSO SOME MULCH ATTACHER ATTACHMENTS FOR MULCHING.
THE LIBRARY HAS TWO ITEMS. ONE IS REPLACING THE CHILD SERVICES DESK AND THEN ALSO THERE'S SOME, UH, KIOSK LEARNING STATIONS FOR, UM, FOR YOUNG LEARNERS.
AND THERE'S ALSO, UM, A CITIZEN SURVEY SATISFACTION SURVEY THAT WE DO EVERY OTHER YEAR.
THERE'S FUNDING FOR THAT AS WELL.
AND THAT'S VERY HIGH LEVEL FOR THE GENERAL FUND UTILITY FUND.
I JUST WANTED TO POINT OUT THAT THE 26 BUDGET ALSO HAS 2.3 DAYS ESTIMATED IN THE FUND BALANCE FOR THE EXPENSES.
NOTABLE THINGS AS THERE'S $8 MILLION CASH FUNDED TO REINVESTMENT PROGRAM FOR THE UTILITIES, THE OVERHEAD PAYMENT THAT THE UTILITY FUND PAYS FOR ADMINISTRATIVE SERVICES TO THE GENERAL FUND INCREASED ALMOST A HUNDRED, A $401,000.
THERE'S ALSO 576,000 INCREASE ON WATER CONTRACT PURCHASES.
THAT HAS TO DO WITH THE CITY OF HOUSTON PAYMENTS.
AN ADDITIONAL 715,000, UM, THAT WE'RE TRYING TO CHANGE, UH, THE SCHEDULE IN WHICH WE MAKE OUR ANNUAL PAYMENT TO THE CITY OF HOUSTON AS A CO PARTICIPANT, THERE'S ALSO FUNDING FOR A 24 7 PAYMENT KIOSK AT THE CITY HALL DRIVE THROUGH SO THAT PEOPLE THAT COME TO PAY THEIR UTILITY BILL DON'T HAVE TO WAIT UNTIL WE'RE OPEN.
AND THERE'S ALSO FUNDING IN LINE REPAIR FOR A COVERED AWNING AND A CONCRETE SLAB TO PROTECT AND SECURE EQUIPMENT AT THE LINE REPAIR YARD.
AND THEN LASTLY, BEFORE WE OPEN IT UP TO QUESTIONS, I WANTED TO HIGHLIGHT THE BALLPARK.
I KNOW THAT'S SOMETHING THAT'S NEWER FOR US.
THE 26TH BUDGET INCLUDES SEVERAL NEW ITEMS. ONE IS PARTIAL REPLACEMENT OF RESTAURANT ENTRANCE STORES, CAMERA AND BADGE READER UPDATES.
WE ALSO HAVE SOME FUNDING IN THERE FOR ANTICIPATED LEGAL FEES.
THERE'S ALSO A THIRD PARTY OPERATIONS AUDIT FUNDING, A SECOND PHASE OF SHADE STRUCTURE INSTALLATION, PARTIAL OUTFIELD PLYWOOD REPLACEMENTS.
THERE'S A SUBCOMPACT TRACTOR LOADER BACKHOE, AND THEN THE F-150 THAT I MENTIONED ON THE VEHICLE LIST.
I DO HAVE DETAILS ON ALL THE OTHER FUNDS AT THE BACK OF THIS PRESENTATION.
UM, WE HAVE A HANDOUT THAT IS THE SCHEDULE.
OUR NEXT WORKSHOP IS AT FIVE 30 ON THE 12TH, FOLLOWED BY THE THIRD ONE ON THE 26TH.
THOSE ARE BOTH COUNCIL NIGHTS.
WE ANTICIPATE THE NEXT WORKSHOP WE'LL TALK ABOUT PROPERTY TAX, WHERE WE'RE AT WITH THE CERTIFIED ROLE AND THE NO NEW REVENUE RATE, AND GIVE THE COUNCIL INFORMATION TO PROPOSE A TAX RATE THAT NIGHT, UM, AT THE COUNCIL MEETING.
AND ALSO WE'LL TALK ABOUT CIP, WE HAVE A HANDOUT THAT WE INCLUDED TONIGHT THAT'S JUST FOCUSED ON NEW PROJECTS.
UM, AND THEN WE WOULD ALSO BE PREPARED TO TALK ABOUT DEBT ISSUANCES.
AND THAT'S ALL I HAD PREPARED.
WE GET THE QUEUE AND THEN LET'S START, UH, ASKING QUESTIONS BEFORE SHE GETS THE QUEUE.
NO, WE CAN WAIT TILL WE OH, THAT'S FINE.
YEAH, JUST SO YOU YEAH, I JUST, YOU KNOW, I WAS KIND OF SURPRISED TODAY I WAS LOOKING AT THE AGENDA, UM, FOR THE BUDGET WORKSHOPS AND EVERYTHING AND I KIND OF LOOKED AT IT MAYOR AND LOOKING AT THE COUNCIL BUDGET WORKSHOP TIMES.
[00:20:01]
I THINK, UH, FOR THE THREE TIMES THAT WE HAVE SCHEDULED, IT'S ONLY A HOUR AND A HALF.I REALLY DON'T LIKE THIS PROCESS.
I, I TOLD ANGIE TODAY, I THINK IT'S TOO QUICK, YOU KNOW, AN HOUR AND A HALF TO GO OVER THE ENTIRE CITY BUDGET.
I JUST DON'T THINK IS ENOUGH TIME, ESPECIALLY RIGHT BEFORE OUR COUNCIL MEETING.
I WOULD PREFER TO MAYBE HAVE MEETINGS LIKE WE USED TO AT THE CIVIC CENTER.
IT, IT JUST SEEMS LIKE WE'RE RUSHING THROUGH THIS FOR SOME REASON.
UH, I'M NOT FOR SURE HOW WE GOT HERE, BUT I I, I JUST DON'T THINK THERE'S ENOUGH TIME TO GO OVER ALL OF THIS INFORMATION.
UM, LIKE ANGIE SAID, THIS WAS A HIGH LEVEL REVIEW OF JUST NUMBERS AND TAX REVENUES AND, AND EVERYTHING.
BUT I WOULD HOPE THAT WE WOULD MAYBE CONSIDER HAVING SOME MORE DAYS TO LOOK AT THE BUDGET IN GENERAL.
I THINK I'D LIKE TO HEAR ALL THE INPUT FROM COUNCIL MEMBERS IF YOU, IF YOU HAVE A QUESTION OR CONCERN, UH, ABOUT THE BUDGET.
AND THIS JUST SEEMS VERY QUICK THIS YEAR ON THE BUDGET PROCESS.
I KNOW LAST YEAR SEEMED TO GO PRETTY QUICKLY TOO, BUT, UM, I WOULD, I WOULD HOPE THAT MAYBE I COULD HEAR SOME INPUT FROM OTHER COUNCIL MEMBERS, BUT IT'S VERY DIFFICULT TO GO THROUGH THE THREE LARGE BINDERS THAT WE HAVE.
AND, AND IF YOU HAVE QUESTIONS, YOU HAVE TO WRITE 'EM DOWN AND SEND 'EM TO ANGIE OR TO JOHN OR HAVE A ONE-ON-ONE MEETING WITH THEM.
IT'S JUST, TO ME, I THINK IT'S, UH, THE CITY IS GROWING SO MUCH THAT WE NEED TO REALLY HAVE BUDGET HEARINGS LONGER THAN SHORTER.
AND THAT KIND OF FEEDS INTO MY THING.
SO, UM, I DON'T, I DON'T DISAGREE WITH YOU.
SO I THINK, UH, I WOULD ASK TO MOVE THE, THE ONE ON THE 12TH TO FIVE O'CLOCK TO AT LEAST GIVE US AN HOUR THERE.
AND THEN BASED ON HOW WE FEEL AFTER THAT, YOU KNOW, WE HAVE 14 DAYS IN BETWEEN THE 12TH AND THE 26TH TO ADD, UH, TO ADD OTHER WORKSHOPS IN THERE.
NOT ON COUNCIL DAYS IF, IF EVERYBODY FEELS THOSE ARE NECESSARY.
UH, AND THEN ALSO ON THE 12TH I ASKED, UH, THE STAFF TO BRING BACK INFORMATION ABOUT THE 2 87 G PROGRAM AND OPERATION LONE STAR AND PROBABLY SEND EVERYTHING, YOU KNOW, TO YOU GUYS BEFORE THAT MEETING AS WELL.
AND SO WHAT BOTH THOSE PROGRAMS ARE, LONE STAR IS OBVIOUSLY A, A STATE OF TEXAS PROJECT OR STATE OF TEXAS GRANT OPPORTUNITY DEAL.
AND THEN 2 87 G IS A FEDERAL ONE BOTH DEALING WITH, UH, COOPERATING WITH ICE.
AND I THINK THEY'RE BOTH GERMANE CONVERSATIONS TO HAVE DURING BUDGET BECAUSE IT, OBVIOUSLY, THERE'S GRANT OPPORTUNITIES, THERE'S EXPENSES THAT COME WITH THAT.
AND SO TO INTRODUCE THAT CONVERSATION ON THE 12TH, I THINK WE'RE GONNA NEED MORE TIME.
SO MOVE THAT TO FIVE AND THEN AFTER THAT DISCUSSION ON THE 12TH, SIT DOWN AND FIGURE OUT, YOU KNOW, DO YOU KNOW, DO WE THINK WE NEED MORE, UH, WORKSHOPS AND THEN WHEN THOSE WORKSHOPS SHOULD BE BETWEEN THE 12TH AND THE 26TH? AND THEN I HAVE A COUPLE OF QUESTIONS AS WELL, JUST IN GENERAL, UH, THE A DA, UH, COMPLIANCE DEAL THAT YOU MENTIONED IS, IS THAT A ONE TIME FEE OR ARE WE EXPECTING THAT TO BE A RECURRING COST? I BELIEVE THE EXPECTATION IS IT'S A RECURRING COST.
UH, AND THEN WE TALKED ABOUT ADDING THE HR LEAVE COORDINATOR.
UH, THAT IS SOMETHING THAT CAN BE OUTSOURCED QUITE EASILY.
UH, YOU KNOW, IT'S NOT CHEAP TO DO THAT, BUT HAVE WE EXPLORED THE COST OF THE EMPLOYEE VERSUS OUTSOURCING THAT I BELIEVE IT WAS ACTUALLY TURNED INTO US FOR THE TWO OPTIONS.
AND WE CAN PULL THE BACKUP AND SEND IT OUT TO THE COUNCIL AS A WHOLE.
ANYBODY ELSE? SO, YOU KNOW, YOU MENTIONED EARLIER ABOUT THE INCREASE OF THE VALUES AND OBVIOUSLY THE VALUES HAVE INCREASED LESS THIS YEAR THAN THEY HAVE IN THE PAST AS A, AS A PERCENTAGE.
AND, AND ONE PART THAT, THAT YOU MENTIONED, BUT I WANT TO KIND OF CLARIFY A LITTLE BIT, IS ABOUT THESE APARTMENT COMPLEXES.
AND SO A BIG AMOUNT OF OUR GROWTH THIS LAST YEAR WAS EATEN UP BECAUSE SEVERAL APARTMENT COMPLEXES, IS IT THREE OR FOUR? SAY, I BELIEVE IT'S FOUR AND POSSIBLY IT'LL BE A FIFTH
THAT'S, IT'S, THAT'S INCREDIBLE.
SO FOUR OR FIVE APARTMENT COMPLEXES WENT FROM PAYING TAXES TO NO LONGER PAYING TAXES.
SO WIPING THAT GROWTH IMMEDIATELY OR ESSENTIALLY EATING ALL THE NEW GROWTH, RIGHT? IF FIVE APARTMENT COMPLEXES FEATURING A THOUSAND PLUS UNITS WIPED OFF THE TAX ROLLS.
AND SO WHAT THAT WAS, UH, JUST TO CLARIFY FOR EVERYBODY, THAT WAS BEFORE SEPTEMBER 1ST
[00:25:01]
OF THIS YEAR.IT WAS LEGAL FOR OUTSIDE HOUSING AUTHORITIES TO COME INTO LEAGUE CITY.
AND SO THESE HOUSING AUTHORITIES WERE FROM THE RIO GRANDE VALLEY, THEY'RE FROM PEGAS, TEXAS.
AND THEY COULD COME IN AND DO DEALS INSIDE THE CITY OF LEAGUE CITY.
WE HAD NO AUTHORITY, WE HAD NO KNOWLEDGE, WE HAD NO ABILITY TO STOP THEM AND THEY COULD TAKE THESE APARTMENT COMPLEXES AND MOVE THEM, UH, OFF THE TAX AS UH, KIND OF GOVERNMENT SPONSORED HOUSING.
UH, AND THAT IS NO LONGER THE LAW GOING FORWARD.
BUT THERE IS NO WAY FOR US TO STOP THE ONES THAT ALREADY HAPPENED, UH, THAT HIT THE CITY OF LEAGUE CITY PARTICULARLY HARD.
IT HAPPENED ALL OVER GALVESTON COUNTY, BUT IT HIT US PROBABLY HARDER THAN EVERYBODY.
AND SO THAT AID INTO OUR GROWTH SUBSTANTIALLY.
UH, SO I THINK WE'RE, WE'RE PICTURING THE, THE NO NEW REVENUE RATE AT BEING AT THE CURRENT TAX RATE.
I WOULD STILL LIKE TO LOOK FOR A SLIGHT TAX DECREASE ON TOP OF THAT.
UH, HOWEVER, WHEN ARE WE GOING TO GET BACK THE EXACT, UH, CALCULATION ON THE NNR? SO THE CERTIFIED RULE COMES OUT AROUND JULY 25TH.
THERE'S STILL A LOT OF ESTIMATES THAT'S PART OF THAT, BUT IT IS MARKED CERTIFIED THAT ALLOWS THE GALVESTON COUNTY TAX OFFICE TO PERFORM THE CALCULATION FOR NOT ONLY THE VOTER APPROVAL RATE BUT THE NO NEW REVENUE RATE.
I SHOULD HAVE THAT IN EARLY AUGUST.
UM, ONCE I HAVE THAT, I'LL PREPARE AN AGENDA ITEM THAT THE COUNCIL WILL SEE IN THEIR PACKET.
AND ONE OF THOSE ITEMS IS A COMPLETE REPORT ON THE TAX ROLL.
AND WE'LL TALK ABOUT WHAT THE NO NEW REVENUE RATE ACTUALLY CALCULATED AT WHAT THE VALUES ACTUALLY SETTLED AT FOR THE CERTIFIED NUMBER.
UM, AND THEN WE WILL LOOK AT HOW DOES THAT AFFECT OUR CALCULATION FROM A REVENUE STANDPOINT.
'CAUSE THOSE ARE TWO KIND OF DIFFERENT CALCULATIONS.
'CAUSE THERE'S ASSUMPTIONS MADE ABOUT, UM, PROTESTS AND HOW MUCH YOU'LL LOSE TO PROTEST WHEN YOU'RE CALCULATING THE RATE.
BUT THERE COULD BE DIFFERENT ASSUMPTIONS WHEN WE TALK ABOUT REVENUE JUST BASED ON HISTORICAL.
AND SO WE'LL LOOK AT WHAT WE TYPICALLY LOSE BETWEEN CERTIFIED AND OUR FINAL VALUATIONS, WHICH WE, YOU KNOW, GET THROUGHOUT THE YEAR.
SO, UM, WE'LL PROVIDE AS MUCH AS WE CAN TO THE COUNCIL EARLY IN AUGUST SO THAT YOU CAN MAKE SOME DECISIONS ABOUT YOU, WHAT YOU'D LIKE TO SEE THE PROPOSED TAX RATE BE AT THE FIRST MEETING IN AUGUST.
MS. MANN, YOU KNOW, HAVING BEEN THROUGH A FEW OF THESE NOW, UM, YOU CAN SPEND A LOT OF TIME TRYING TO BREAK DOWN, UH, THE INDIVIDUAL DEPARTMENTS AND THEN YOU'LL GET YOUR KIND OF GET WRAPPED AROUND THE AXLE FOR ON, ON THINGS LIKE, AH, THIS TRUCK VERSUS THAT TRUCK.
AND IN MANY WAYS THE PROCESS IS ALMOST DESIGNED TO DO THAT.
AND WHEN IN FACT REALLY OUR TOTAL CONTRIBUTION TO THIS IS A, THE NO NEW REVENUE TAX RATE.
BUT ALSO THE SECOND ELEMENT THAT I THINK NEEDS TO BE EXPLORED THIS YEAR IS TOTAL DEBT LOAD AND MORE IMPORTANTLY, UH, DEBT.
WHAT IS IT? THE INTEREST ON THE DEBT, WHAT'S THE, WHAT'S THE TERM? THE INTEREST? THE DEBT SERVICE.
AND WHAT I'D LIKE TO SEE, BECAUSE WHAT I DON'T, WHAT I, WHAT I SUSPECT IS HAPPENING IS YOU GUYS ARE RUSHING TO A, GET WHAT YOUR DEPARTMENTS NEED, BUT THEN ALSO DO IT UNDER NO NEW REVENUE SO THAT WE DON'T GET MAD.
BUT I FEAR THAT WE'RE LOADING UP ON DEBT TO MAKE THAT NUMBER.
AND SO I'D LIKE TO SEE, I'D LIKE TO BE WRONG, I HOPE I'M WRONG, BUT IT'S, YOU KNOW, FOR US TO POINT TO THE NO NEW REVENUE TAX RATE AS THIS GREAT THING THAT WE'RE DOING, WHICH IT'S AWESOME, BUT CAN WE EXPLORE HOW MUCH IS THIS IS AFFECTING OUR DEBT SERVICE OVER TIME? STARTING LIKE, GO BACK TO 20, I DON'T KNOW, 10, 20 15 SHOULD BE A PRETTY STRAIGHTFORWARD GRAPH.
SO IF YOU COULD ADD THAT IN TO THE ANALYSIS.
'CAUSE LIKE I SAID, EVERY YEAR WE END UP ARGUING OVER, I REMEMBER ONE YEAR IT WAS I THINK CHALLENGE COINS FOR THE COPS, YOU KNOW, MASSIVE $5,000 AND HUNDREDS OF MILLION DOLLAR BUDGET.
SO, UM, WHEN IN FACT, I MEAN AT OUR LEVEL REALLY THOSE TWO TOP FIGURES ARE OUR CONTRIBUTION TO, TO THE ACTUAL, UM, I DON'T KNOW, THE TRUE CONSERVATIVE, UH, VALUES THAT WE'RE TRYING TO PUSH THROUGH TO THE ORGANIZATION.
YEAH, I THINK THAT MAKES A LOT OF SENSE.
THE OTHER PART I THINK IT'S IMPORTANT TO KIND OF PUT ON TOP OF THAT IS THE, UH, PORTION OF THE SALES TAX THAT'S, UH, DEDICATED TO PAYING TO THE CIP AS WELL AND
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HOW THAT'S INCREASING AND HOW WE PLAN ON USING THAT MONEY, UH, GOING FORWARD TO PAY DOWN SOME OF THIS DEBT AND PAY DOWN SOME OF THESE PROJECTS.SO I THINK IT ALL KIND OF INTERACTS WITH EACH OTHER, BUT, UH, PROBABLY IN THE NEXT MEETING, I THINK YOU ALREADY DID THE, THE GRAPH THAT SHOWS THAT.
BUT IF WE COULD HIGHLIGHT THAT TO EXPLAIN THAT AS WELL, I THINK THAT WOULD BE WORTHWHILE SCREWS.
THIS IS, UH, ACTUALLY NICK, YOU'D BE PROBABLY THE BETTER ONE TO, TO ANSWER THIS.
FOR THE APARTMENT COMPLEX, IT'S A FOUR OR FIVE THAT THAT CAME OUT.
UH, DOESN'T THIS, NORMALLY THE PROGRAM IS SUPPOSED TO HAVE THEM LOWER RENT SO THAT THERE'S KIND OF, I DON'T WANNA CALL IT RENT CONTROLLED, BUT IS THERE ANY WAY FOR US TO CHECK SO THEY'RE JUST NOT PROFITING THE KEEPING THE RENTS HIGHER, BUT IT, WELL, IT'S NOT SECTION EIGHT, IT'S, IT'S NOT SECTION EIGHT.
BUT YEAH, WE TRADITIONALLY HAVEN'T PUT A, WE TRADITIONALLY HAVEN'T CHECKED BECAUSE WE HAVE NOT ALLOWED THEM, BUT WE CERTAINLY SHOULD BECAUSE NOW THEY'VE TAKEN THE MONEY FROM THE TAXPAYERS AND SO WE AT LEAST NEED TO MAKE SURE THEY'RE DELIVERING ON THEIR END OF THE BARGAIN, UM, HOW TO DO THAT.
I DON'T, I DON'T HAVE THE ANSWER FOR THAT, BUT THEY, IT IS PROBABLY SOMETHING THAT WE NEED TO ENSURE, UH, COMPLIANCE WITH, WITH, UH, WITH THE TAX DECREASE THAT THEY'RE GETTING FROM US.
HEY MR. SO, BUT YOU AND COUNCILMAN CRUZ JUST BROUGHT UP, DO WE HAVE A DOLLAR AMOUNT ON HOW MUCH TAXABLE VALUE WE LOST ON THOSE APARTMENT COMPLEXES? YES, I CAN SEND IT OUT IN AN EMAIL, MA'AM.
I CAN SEND IT OUT IN AN EMAIL.
THAT'S NOT, THAT'S NOT THE PROBLEM.
I MEAN, IT IS A PROBLEM, IT IS A PROBLEM BUDGET AND THE BUDGET AND THE BUDGET CONCERN, BUT GOING FORWARD HOW THOSE ARE MANAGED, UM, THAT'S THE REAL PROBLEM.
THAT IS, AND THAT IS A, I COMPLETELY AGREE WITH YOU ON THAT.
I'M JUST CURIOUS WHAT, WHAT KIND OF, WHAT WE JUST LOST ON 'EM TOO, IF THAT MAKES SENSE, WHAT I'M SAYING? YEAH, I MEAN I THINK IT'S A DOUBLE-EDGED SWORD, RIGHT? SO IT'S, WE'VE LOST REVENUE ON IT AND NOW WE HAVE PICKED UP AN ADDITIONAL ADMINISTRATIVE BURDEN TO MAKE SURE THAT THEY DON'T TURN INTO SECTION EIGHT EVENTUALLY.
THAT THEY DON'T GET RUN DOWN, THAT THEY DON'T, YOU KNOW, THE CODE COMPLIANCE ASPECT OF IT IS PART OF IT, BUT THEN THERE'S ALSO THE STRAIGHT COMPLIANCE THAT IF THEY'VE, UH, IF THEY'VE RECEIVED THESE TAX BREAKS, ARE THEY DELIVERING THE FINANCIAL RESULTS THAT THEY'RE SUPPOSED TO TO THE CITIZENS? SO IT'S, UH, EVERY, EVERY, ALL PARTS OF THAT, THOSE THREE, THOSE THREE LEGS OF THAT STOOL COST US MONEY.
AND UH, WE NEED TO THINK ABOUT THAT AND HOW THAT'S GONNA IMPACT US GOING FORWARD.
'CAUSE IF YOU LOOK AT SOMETHING LIKE WALMART THAT, YOU KNOW, YOU HAVE TO HAVE EXTRA POLICE 'CAUSE YOU HAVE A WALMART, AT LEAST YOU HAVE A REVENUE STREAM COMING FROM IT.
THIS IS THE WORST OF BOTH WORLDS
AND WE WERE PASSED ON, BUT THE, THE ONE PART I'LL THROW IN THAT IS THAT WE SPENT A LOT OF TIME, UH, AT THE CAPITOL THIS YEAR TESTIFYING ON THAT BILL TO, TO FIX IT GOING FORWARD, TO FIX IT GOING FORWARD.
AND UNFORTUNATELY AT THE LAST MINUTE, THEY STRIPPED OUT THE PART TO INVALIDATE THEM GOING BACKWARDS.
UH, SO IT WAS, IT WAS A DISAPPOINTMENT TO NOT GET THE FULL BILL THAT WE WANTED.
UM, BUT AT LEAST, AT LEAST IT WON'T CONTINUE TO HAPPEN INTO THE FUTURE.
AND AT 6 0 3, UH, WE WILL ADJOURN THIS MEETING AND MOVE INTO THE NEXT ONE.