>> Mayor Muns: I NOW DECLARE THAT THE PLANO CITY COUNCIL IS CONVENED IN OPEN SESSION AND THAT ALL MEMBERS ARE PRESENT. OUR FIRST ITEM IS THE OVERVIEW OF THE 2021-2022 BUDGET AND COMMUNITY INVESTMENT PROGRAM. MARK. >> MAYOR AND COUNCIL, I'M ACTUALLY GOING TO PROVIDE AN UPDATE ON THE 22-23 BUDGET AND CIP. I'M GOING TO UPDATE THAT MEMO TO THE MAYOR VERY SOON HERE, VERY SOON. I'D LIKE TO BEGIN -- >> Mayor Muns: LET'S MOVE TO ITEM 2 THEN. >> THERE WE GO. I WOULD LIKE TO BEGIN WITH THANKING TEAM PLANO FOR THEIR DEDICATED WORK ON THE BUDGET FOR FISCAL YEAR 22-23. OUR EMPLOYEES ARE TRULY OUR GREATEST ASSET AND TEAM PLANO TO SERVE THE PLANO COMMUNITY AND KEEP PLANO THE CITY OF EXCELLENCE. DURING THE BUDGET PROCESS I MET WITH EACH COUNCIL MEMBER TO HEAR EACH MEMBER'S PRIORITIES FOLLOWED BY MY TEAM AND I MEETING WITH EACH DEPARTMENT TO RECEIVE UPDATES ON CITY OPERATIONS. A QUICK SUMMARY IS THE PLANO ECONOMY AND SERVICE DEMANDS ARE BACK TO PRE-COVID LEVELS AND THE ORGANIZATION IS OPERATING AT FULL CAPACITY WHILE SIMULTANEOUSLY PLAYING SOME CATCH UP FROM COVID. THE CITY MANAGER'S RECOMMENDED BUDGET DOES NOT PROPOSE ADDING ANY NEW PROGRAMS BUT RECOGNIZES THE CITY IS CHALLENGED TO KEEP UP WITH THE SERVICE DEMANDS AND EXPECTATIONS FOR EXCELLENCE. THIS YEAR WE'RE IN A DIFFERENT ENVIRONMENT POST COVID. DURING THE BUDGET PROCESS THE PAST TWO YEARS THERE WAS A SIGNIFICANT AMOUNT OF ECONOMIC UNCERTAINTY AND WITH THAT THE RECOMMENDED BUDGET IN EACH OF THOSE YEARS BROUGHT FORWARD MINIMUM REQUESTS. THE PAST TWO YEARS THE CITY WAS FORTUNATE TO RECEIVE FEDERAL FUNDS THROUGH THE CARES ACT AND ARPA FUNDS THAT ALLOWED THE CITY TO WEATHER THE COVID ECONOMIC ROLLER COASTER WITHOUT IMPACTING SERVICE LEVELS. WITHOUT THOSE FUNDS THE CITY AND THE COMMUNITY WOULD HAVE BEEN SIGNIFICANTLY IMPACTED DUE TO THE FINANCIAL SHOFALL THE CITY FACED IN SALES TAX, HOTEL/MOTEL TAXES AND THE CITY WOULD HAVE FACED OPERATIONAL DECISIONS. OVER THE PAST THREE YEARS THE CITY HAS PASSED A RATE EQUAL TO OR CLOSE TO THE NEW NO REVENUE RATE OR EFFECTIVE TAX RATE. THIS YEAR THE CITY SPENT THE FIRST HALF OF THE YEAR LISTENING TO OUR CITIZENS AND COLLECTING FEEDBACK. THE INFORMATION FROM THE LISTENING TOUR AND THE CITIZEN SURVEY ARE IMPORTANT COMING OUT OF COVID TO ASSESS THE NEEDS AND PRIORITIES OF THE COMMUNITY. THIS STRATEGIC EFFORT CONFIRMED THE COMMUNITY DOES NOT WANT TO SEE REDUCTION IN SERVICES AND THE CITY IS A SERVICE INDUSTRY AND WE ARE SUBJECT TTHE SAME ECONOMIC CONDITIONS AFFECTING THE REST OF THE CITY. WE HAVE SEEN SIGNIFICANT INFLATION, SUPPLY CHAIN DISRUPTION, LABOR SHORTAGES OR CHALLENGES WHICH ARE AFFECTING OUR FINANCIAL CONDITION. THE CITY OF PLANO IS THE BEST VALUE FOR ANY CITY IN THE METROPLEX AND POSSIBLY ACROSS THE STATE OF TEXAS. THIS IS DUE TO THE COMMITMENT TO THE GOALS. WHILE MANY CITIES ACHIEVE ONE OR TWO GOALS THE ABILITY TO BALANCE ALL FIVE EACH YEAR MAKES PLANO THE ENVY OF MANY COMMUNITIES. AND THE CITY MANAGER'S RECOMMENDED BUDGET IS CONTINUING WITH AALANCE O THE SAME FIVE GOALS THAT MAKE PLANO THE CITY OF EXCELLENCE. THOSE FIVE GOALS ARE OUR FINANCIAL POLICIES, THE CITY MANAGER'S RECOMMENDED BUDGET BRINGS FORWARD A BALANCED BUDGET. IT MAINTAINS THE CITY'S COMMITMENT TO THE FOUND POLICIES, FUNDING LIABILITIES ANNUALLY, PAYING CASH FOR MAINTENANCE ITEMS AND TREATING OUR ENTERPRISE FUNDS LIKE A BUSINESS . THESE POLICIES HELP THE CITY ACHIEVE A AAA BOND RATING WHICH SAVES THE CITY INTEREST COSTS AND ENSURES THE CITY CAN WEATHER ECONOMIC CYCLES WITHOUT AFFECTING CITIZENS OR BUSINESSES. AS A EMPLOYER WE WANT TO MAKE SURE WE'RE COMPETITIVE. WE RECOGNIZE THAT WE ARE A COMPETITIVE MARKETPLACE AND MUST COMPETE FOR TALENT WITHIN OUR MARKET INCLUDING THE POLITIC AND PRIVATE SECTORS. THE MARKET TO ENSURE THE ORGANIZATION REMAINS COMPETITIVE FOR PERSONNEL AND THE RECOMMENDED BUDGET INCLUDES FUNDING FOR A 3.5% ACROSS THE BOARD INCREASE, COMPENSATION PLAN ADJUSTMENTS , TRAINING AND EQUIPMENT, AND 52 NEW POSITIONS. E SARY INCREASE WILL TOTAL $8 MILLION ACROSS ALL FUNDS AND THE NEW POSITIONS TOTAL $5.3 MILLION. GOAL THREE IS QUALITY INFRASTRUCTURE AND WE ARE AN AGING CITY AND WE HAVE PRIORITIZED MAKING SURE THAT WE KEEP UP WITH MAINTENANCE AND REPAIR OF OUR ASSETS. THIS ENSURES OUR COMMUNITY WILL STAY VIBRANT AND ATTRACTIVE. THE CITY WILL CONTINUE TO MAINTAIN ASSETS AT A HIGH LEVEL AND BE PROACTIVE IN PROVIDING NEEDED REPAIRS. THE COMMUNITY INVESTMENT PROGRAM WILL INCLUDE $330 MILLION WORTH OF PROJECTS DURING FISCAL YEAR 22-23 AND ADDITIONALLY PRIOR CIP ONLINE REQUIRE OPERATIONS AND MAINTENANCE FUNDINGS OF $988,000 WHICH ALSO INCLUDES SEVEN NEW POSITIONS. THE RECOMMENDED BUDGET INCLUDES $18.2 MILLION IN AMERICAN RESCUE PLAN ACT FUNDS. THESE FUNDS WERE APPLIED TO PUBLIC SAFETY SALARIES PER THE PREVIOUS DIRECTION OF CITY COUNCIL. GOAL FOUR IS THE SERVICE DEMANDS AND PROGRAMS, THE CITY WILL CONTINUE TO PROVIDE HIGH-VALUE PROGRAMS AND SERVICES FOR OUR CITIZENS AND BUSINESSES. THE CITY IS CONTINUALLY RECOGNIZED AS HAVING BEST PRACTICES ACCREDITED IN AWARD-WINNING DEPARTMENTS WHILE LOOKING FOR NEW WAYS TO INNOVATE ANDENEF OUR COMMUNITY. THERE ARE NO NEW PROGRAMS PROPOSED IN THE 22-23 BUDGET. HOWEVER, THERE ARE RESOURCES REQUESTED TO ALLOW EXISTING PROGRAMS TO MEET THE SERVICE DEMANDS OF THE COMMUNITY. THE LAST GOAL IS AFFORDABILITY AND PROPERTY TAX. THE CITY MANAGER'S RECOMMENDED BUDGET COMPLIES WITH THE CITY'S FINANCIAL POLICIES AND APPLIES THE ONE-TIME ARPA FUNDING TO PUBLIC SAFETY SALARIES AS DISCUSSED. RESULTING IN A TAX RATE OF 42.65 CENTS PER $100 OF ASSESSED PROPERTY VALUES. THIS EQUATES TO A TWO-CENT PROPERTY RATE REDUCTION FROM THE CURRENT 44.65. THE CITY HAS A MAXIMUM 20% HOMESTEAD EXEMPTION CURRENTLY IN PLACE AND ALSO THE SENIOR TAX FREEZE. THE SENIORS WITH THE FREEZE WILL NOT SEE ANY INCREASE IN THEIR TAX BILL WHILE THEIR FREEZE IS IN PLACE. THE CITY OF PLANO CONTINUES TO HAVE THE LOWEST TAX RATE BURDEN OF OUR SURROUNDING CITIES WHILE PROVIDING THE HIGHEST LEVEL OF SERVICES. THE DRIVERS FOR THE ADDITIONAL RESOURCES IN THE 22-23 BUDGET NEEDED TO RESPOND AND ADDRESS THE INCREASE IN SERVICE DEMANDS HAVE BEEN DRIVEN BY PUBLIC SAFETY AND SECURITY INCLUDING 30 POSITIONS INCLUDING MENTAL HEALTH OFFICERS FIREFIGHTERS AND TECHNOLOGY POSITIONS. INFRASTRUCTURE AND CIP NEEDS TO ADD 15 POSITIONS INCLUDING ENGINEERS PLANNERS AND NEIGHBORHOOD INSPECTORS AND THE THIRD DRIVERS ARE INFLATION AND COVID-RELATED COSTS. THE RESULT IS A RECOMMENDED BUDGET THAT WILL STAY TRUE TO OUR VALUES AND WILL PROVIDE HIGH-QUALITY PROGRAMS AND SERVICES TO MEET THE NEEDS OF OUR CITIZENS AND BUSINESSES AND KEEP PLANO THE CITY OF EXCELLENCE. THE AVERAGE HOME VALUE HAS INCREASED IN PLANO FRO $396,673 TO $493,927, WHICH IS APPROXIMATELY A 25% INCREASE IN THE AVERAGE HOME IN PLANO. AS A REMINDER, WHILE THE MARKET VALUE MIGHT HAVE INCREASED 25%, THE TAXABLE VALUE IS CAPPED AT 10% INCREASE. FOR SOME PROPERTIES. BUT IF YOU'RE OVER 65 WITH A FREEZE, YOU WILL NOT HAVE THAT INCREASE. AS MENTIONED EARLIER, THE CITY HAS ADDITIONAL EXEMPTIONS ON TOP OF THOSE. THE TAX RATE NEEDED FOR THE PROPOSED BUDGET IS REDUCED FROM LAS YEAR BUT SLIGHTLY ABOVE THE NO NEW REVENUE RATE. THE RESULTING IMPACT FOR THE TAX BILL FOR THE AVERAGE HOME IS $268 ANNUALLY OR $22.35 PER MONTH. THE VOTER APPROVAL TAX RATE WILL BE PRESENTED TO CITY COUNCIL FOR DISCUSSION . ADDITIONALLY I WILL BE HAVING ADDITIONAL ONE-ON-ONE MEETINGS WITH COUNCIL MEMBERS TO DISCUSS FURTHER THE BUDGET AND ANSWER QUESTIONS. THE MAJORITY OF THE DISCUSSION TONIGHT HAS BEEN ON THE CITY'S GENERAL FUND WHERE PROPERTY TAXES ARE AN IMPORTANT SOURCE OF REVENUE. THIS YEAR I NEED T MAKE NOTE AT OUR COSTS IN THE WATER AND SEWER FUND AND ENVIRONMENTAL SERVICES FUND HAVE INCREASED DUE TO OUR CONTRACTS WITH NORTH TEXAS MUNICIPAL WATER DISTRICT. THEY'RE EXPERIENCING SIMILAR ISSUES OF INFLATION, SUPPLY CHAIN, LABOR, AND INCREASE IN SERVICE DEMANDS WHICH ARE DRIVING THEIR COSTS AS THEY REPORTED TO COUNCIL EARLIER IN JUNE. THE CITY MANAGER'S RECOMMENDED BUDGET PASSES THROUGH THESE INCREASED COSTS INTO OUR RATES TO OUR RESIDENTS AND CORPORATIONS THAT PAY FOR SERVICE. IN CONCLUSION, I WANT TO THANK OUR EXECUTIVE TEAM FOR ALL THEIR HARD WORK. MY DEPUTIES, SHELLY, SAM, AND JACK FOR ALLHEIR WORK PUTTING THIS TOGETHER AND I WANT TO THANK KAREN RHODES AND THE ENTIRE BUDGET TEAM WHO WORKED TIRELESSLY UP UNTIL YESTERDAY WAITING FOR FINAL NUMBERS FROM ONE OF OUR CENTRAL APPRAISAL DISTRICTS TO GET THIS BUDGET PUT TOGETHER. WITH THAT, KAREN, WOULD YOU GO AHEAD AND PRESENT THE 22-23 BUDGET TO CITY COUNCIL? >> Rhodes-Whitley: GOOD EVENING. KAREN RHODES, BUDGET DIRECTOR, CITY OF PLANO. THE DOCUMENT THAT'S BEEN POSTED OUT ON THE INTERNET, WE HAVE THE RECOMMENDED BUDGET THAT THE CITY MANAGER'S GONE OVER. WE HAVE ALSO A PROPOSED CIP THAT'S TOTALING $330 MILLION. THE DOCUMENT THIS YEAR IS 563 PAGES LONG. I TOLD THE EXECUTIVE TEAM THIS MORNING ONLY THE CITY MANAGER, HIS MEMO'S THREE PAGES OUT OF ALL THAT CIP. THAT MEANS ALL THOSE OTHER PAGES ARE PROJECTS THAT ARE GOING ON HERE AT THE CITY OF PLANO. IT'S JUST ABSOLUTELY AMAZ. AS MENTIONED BY MARK, THE BUDGET HAS BEEN BUILT REGARDING OUR GOALS THAT WE HAVE, WHICH IS TO KEEP UP OUR QUALITY INFRASTRUCTURE, HANDLE OUR SERVICE DEMANDS, MAKE SURE THAT WE ARE ADHERING TO OUR FINANCIAL POLICIES AND OUR AAA BOND RATING. MAKE SURE THE PROPERTY TAX IS AFFORDABLE AND THEN, OF COURSE, TO GO AHEAD AND HANDLE ALL OUR PERSONNEL AND OUR STAFFING ISSUES, INCLUDING A SALARY INCREASE THIS YEAR. OH MY. THE BUDGET FOCUS THIS YEAR WAS ON OUR PUBLIC SAFETY AND SERVICE DEMANDS. WE HAVE FIREFIGHTERS THAT ARE NEEDED TO HANDLE TWO DIFFERENT AMBULANCES THAT WE'RE GOING TO BE BRINGING ON. WE'RE HIRING TWO MENTAL HEALTH POLICE OFFICERS TO HANDLE CRISES. WE HAVE SEVEN DIFFERENT TECHNOLOGY POSITIONS THAT ARE NEEDED QUALITY ENGINEERS, PLANNERS, AND OFG COURSE NEIGHBORHOOD INSPECTORS. AND THEN WE'RE HAVING TO HANDLE OUR INFLATION COSTS. AND THEN COVID-DELAY COSTS. WE HAVE INCLUDED IN THE BUDGET OVER $2 MILLION JUST HANDLING INFLATIONARY COSTS AMONG THE DIFFERENT DEPARTMENTS. IN ADDITION, AT THE AUGUST 13th SATURDAY BUDGET WORK SESSION YOU'RE GOING TO HEAR ABOUT OUR HEALTH INSURANCE FUND. OUR HEALTH INSURANCE FUND HAS STARTED DEPLETED OUR FUND BALANCE DURING COVID AND IT'S CONTINUING GOING DOWN DUE TO THE FACT THAT A LOT OF PEOPLE DID NOT GO SEEK MEDICAL TREATMENT DURING COVID AND HAVE NOW BEEN GOING IN. SO OUR HEALTH CLAIM FUNDS HAVE BEEN GOING UP. THE COMBINED BUDGET RESOURCES, THIS IS YOUR REVENUES FOR THE CITY. TAXES IS THE NUMBER ONE AT $328 MILLION. YOUR CHARGES FOR SERVICES IS NUMBER TWO AT $249 MILLION. NOW, THE MAJORITY OF THAT CHARGES FOR SERVICES, THAT'S GOING TO BE YOUR WATER AND SEWER AND YOUR SOLID WASTE CHARGES. YOUR THIRD TOP ONE IS FUND BALANCE, WHICH TOTALS 102, AND THAT'S ACCORDING TO OUR FINANCIAL POLICIES. YOUR BUDGET EXPENDITURES TOTAL THIS YEAR $677 MILLION. BETWEEN THAT AND THE CIP THAT WE'RE GOING TO BE PRESENTING ON AUGUST h, THE TOTAL BUDGET FOR THE CITY OF PLANO NOW TOTALS OVER A BILLION DOLLARS. ONCE AGAIN WATER AND SEWER IS LEADING ON THE EXPENDITURES AND, ONCE AGAIN, THAT IS DUE TO THE FACT THAT WE HAVE THE NORTH TEXAS MUNICIPAL WATER DISTRICT CONTRACT. IT HAS REALLY GONE UP, AS MARK HAD MENTIONED. THEY WERE HIT, JUST LIKE US, WITH A BUNCH OF INFLATIONARY COSTS. THEY'VE GOT STAFF SHORTAGES. EVERYBODY IS SEEING THE SAME THING. SO YOUR NUMBER TWO EXPENDITURE IS GOING TO BE FOR PUBLIC SAFETY AND IT TOTALS 26.4% OR $178 MILLION. GENERAL GOVERNMENT IS YOUR THIRD LARGEST EXPENDITURE AT 110. HOWEVER, THAT DOES INCLUDE THE TRANSFERS THAT WE HAVE GOING OUT TO LIKE YOUR CAPITAL MAINTENANCE FUND AND TECHNOLOGY FUND. SO THAT INCLUDES YOUR TRANSFERS. THE TOTAL FOR THE GENERAL FUND BUDGET IS $362 MILLION AND OF COURSE HALF OF THAT IS FOR PUBLIC SAFETY AND HEALTH FOLLOWED BY OUR NON-DEPARTMENTAL AND OUR TRANSFERS AT $75 MILLION. AND THEN YOUR THIRD LARGEST GOES TO PARKS AND RECREATION AT 9.2% OR $33 MILLION. JUST WANTED TO SHOW Y'ALL THIS CHART. THIS IS INFLATIONARY COSTS. I'M SURE Y'ALL HAVE ALL READ ABOUT THIS AND SEEN IT ON THE NEWS. THEY KEEP GOING UP AND UP AND UP. THE JUNE READING WAS 9.1%. AUGUST 10th THEY WILL COME OUT WITH THE JULY READING. I HOPE THAT IT STARTS GOING DOWN BUT THIS IS WHERE WE'RE CURRENTLY AT TODAY. LET'S TALK ABOUT YOUR PROPERTY TAX ROLL. WE ACTUALLY ARE STILL -- WELL, DENTON COUNTY, THE DENTON CENTRAL APPRAISAL DISTRICT, THEY HAD TO GIVE US A CERTIFIED ESTIMATE THE OTHER DAY. THEY ARE NOT COMPLETED WITH THEIR ROLL. BY LAW IF YOU HAVE A COUNTY THAT HAS 250,000 OR MORE PEOPLE, YOU CAN TAKE A LITTLE BIT LONGER AND ALL THEY NEEDED TO DO WAS GIVE US AN ESTIMATE. SO THEY'RE AT 90%. YOU'RE SUPPOSED TO BE AT 95%. COLLIN COUNTY, THE MAJORITY OF YOUR ROLL, IS IN COLLIN COUNTY AND WE HAVE THEIR FINAL NUMBERS. WE ARE STILL WAITING ON DENTON. SO THE INFORMATION THAT I'M GOING TO SHOW YOU TONIGHT HAS THEIR ESTIMATE IN IT AND THEN THE CERTIFIED VALUES. I AM HOPING WE'RE GOING TO HAVE A WHOLE TAX RATE DISCUSSION ON MONDAY AUGUST 8. I AM HOPING WE WILL HAVE MORE UPDATED NUMBERS BY THEN, SO WE HAVE NOT TOTALLY FINALIZED THESE YET. I JUST WANT TO LET Y'ALL KNOW. THE RECOMMENDED PROPERTY TAX, AS MARK JUST MENTIONED, WE ARE PLANNING ON GOING DOWN BY TWO CENTS, 42.65 CENTS. THAT'S WHAT IS INCLUDED IN THE DOCUMENTS TODAY. THE INFORMATION THAT WE HAVE RIGHT NOW, WHEN YOU GO AND CALCULATE THE NO NEW REVENUE RATE, IT GOES DOWN TO 41.77 CENTS. YOUR VOTER APPROVAL RATE IS 43.8 CENTS. RA THAT STATES IF YOU GOIS THE OVER THAT YOU NEED TO HAVE AN ELECTION IN NOVEMBER. SO WE ARE NOT GOING TO BE IN THAT. IF Y'ALL DECIDE YOU WANT TO GO DOWN TO THE NO NEW REVENUE RATE, WE NEED TO COME UP WITH $4.5 MILLION TO CUT OUT OF THE BUDGET. THE FINAL CERTIFIED NO NEW REVENUE TAX RATE AND VOTER APPROVAL RATE, WE ARE SCHEDULED TO DISCUSS THAT ON MONDAY NIGHT AUGUST 8. THE CITY COUNCIL AT THAT ENING MEENG WL ALSO NEED TO DECIDE -- WE HAVE A PUBLICATION THAT WILL NEED TO GO INTO THE PAPER THE NEXT DAY. ON THIS PUBLICATION YOU NEED TO VOTE ON AND DECIDE WHAT YOUR TAX RATE THAT YOU'RE PROPOSING TO GO THROUGH THE WHOLE BUDGET PROCESS, YOU CANNOT GO UP FROM THAT TAX RATE BUT YOU CAN GO DOWN. AND IT DOES GO INTO THE PAPER. TENTATIVELY WE HAVE A PUBLIC HEARING. RIGHT NOW WE HAVE ONE SCHEDULED FOR AUGUST 22 AND ONE FOR SEPTEMBER 12. IF FOR SOM REASON YOU DO GO BY THE VOTER -- I MEAN, THE NO NEW TAX RATE AT THAT 41.77 CENTS, YOU DO NOT HAVE TO HAVE A PUBLIC HEARING. HOWEVER, NORMALLY Y'ALL DECIDE YOU'RE GOING TO HAVE A PUBLIC HEARING. LAST YEAR WE JUST DID IT ON THE SAME DAY THAT YOU ADOPTED THE TAX RATE. YOUR ASSESSED PROPERTY VALUE RIGHT NOW IS AT $51.9 BILLION. YOU HAVE EXISTING PROPERTY THAT'S COMING ONLINE THAT TOTALS $3.6 BILLION. YOUR NEW PROPERTY GROWTH IS $573 MILLION. YOUR CHANGE IN YOUR BASE OR YOUR EXISTING PROPERTIES WENT UP 7.67% OVERALL, INCLUDING NEW GROWTH. YOU'VE GONE UP 8.87%. SO NEARLY 9%. SOMETHING THAT IS GOING ON, IF YOU GO IN AND YOU LOOK AT THE RESIDENTIAL VERSUS THE COMMERAL, COMMERCIAL WAS OVERTAKING RESIDENTIAL A COUPLE OF YEARS AGO. YOU WILL SEE BACK IN 2021 WE WERE AT 53% ON THE COMMERCIAL SIDE. THIS YEAR WE'RE AT 52% -- I DON'T KNOW IF Y'ALL REMEMBER OR NOT BUT LAST YEAR THE COMMERCIAL SIDE DID GO DOWN. THAT WAS THE DELAYED EFFECT OF COVID. YOU HAVEN'T GONE DOWN THIS YEAR. IT MAINTAINED ABOUT THE SAME VALUE. HOWEVER, ON THIS 51%, YOU HAVE GONE DOWN ON THE SHARE THAT THEY ARE PAYING INN THE PROPERTY TAXES AND RESIDENTIAL HAS GONE UP. LIKE I SAID, WE WILL HAVE MORE DISCUSSION ON THE TAX RATE AND THE TAX ROLL ON AUGUST 8th. THIS CHART SHOWS, IF WE TAKE THE ASSESSED PROPERTY VALUE TIMES THE 42.65 CENTS TAX RATE, WE SHOULD BE GETTING IN $221 MILLION. OUT OF THIS, $109 MILLION, OR 49.2% IS COMINGN FROM TH RESIDENTIAL SIDE. THAT COMPARES TO 48% FROM LAST YEAR. ON THE COMMERCIAL SIDE YOU'RE GETTING $86.9 MILLION OR 39% COMPARED TO $85 MILLION LAST YEAR. AND THEN YOUR MULTIFAMILY STAYED ABOUT THE SAME AT 11.6. IT'S THE DIFFERENCE BETWEEN 24.6 AND $25.6 MILLION. THIS IS A LOOK AT YOUR AVERAGE HOME VALUE. THAT HAS GONE UP 2 THIS LAST YEAR. THIS IS SOMETHING THAT'S GOING ON ALL OVER THE NORTH TEXAS AREA. THE NEW TOTAL FOR THE AVERAGE HOME VALUE IS $493,960. WHEN YOU GO AND EQUATE ALL OUR EXEMPTIONS, WE HAVE $12.5 BILLION THAT COMES OFF THE TAX ROLL IN EXEMPTIONS. THIS IS EXEMPTIONS FOR RESIDENTIAL DISABLED TAX ABATEMENTS, ALL THAT'S INCLUDED IN THERE. YOUR SAVINGS FROM THIS EXEMPTION TOTAL $53.2 MILLION. AND YOUR OVER 65 TAX FREEZE, THE SAVINGS IS GOING TO BE $6.1 MILLION. BEFORE WE LOWERED THE TAX RATE TO THAT 42.65 CENTS, THAT NUMBER WAS AROUND $8 MILLION. THEY HAD SUBSTANTIAL GAIN. BUT SINCE WE HAVE LOWERED THE TAX RATE, IT'S GOING TO EQUATE TO ABOUT THE SAME AS LAST YEAR. THIS IS A LOOK SINCE 2019 ON THE ACTUAL TAX RATE THAT WAS INCLUDED IN THE BUDGET VERSUS THE NO NEW TAX RATE. AS MARKS HAD MENTIONED, THE LAST THREE YEARS WE HAD PASSED THE NO NEW TAX RATE OR SOMETHING NEAR THE NO NEW TAX RATE. RIGHT NOW HERE'S WHERE WE STAND TODAY, INCLUDED IN THE RECOMMENDED BUDGET, IS 42.65 CENTS. YOUR NO NEW REVENUE RATE RIGHT NOW IS 41.77 CENTS. THIS IS A LOOK. IT DOES NOT MATTER WHICH WAY THESE NUMBERS ARE RAN. THE AVERAGE HOME VALUE INCREASING IN THAT SIZE OF AMOUNT, THERE IS NO WAY YOU WOULD HAVE TO GO DOWN TO A 35-CENT TAX RATE IN ORDER FOR THE CITIZENS OF PLANO NOT TO SEE AN INCREASE IN THEIR TAXES. AND, OF COURSE, THIS IS GOING TO DEPEND ON WHAT HOME THEY'RE LIVING IN AND HOW MUCH THEIR VALUE APPRAISE FOR. RIGHT NOW, ACCORDING TO THE CENTRAL APPRAISAL DISTRICT, LAST YEAR A HOME WAS $396,000. IT'S $493,000 THIS YEAR. WE HAVE APPLIED A 2-CENT TAX RATE REDUCTION. AT THE END OF THE DAY IT'S A $268 INCREASE FOR THE AVERAGE HOUSE VALUE. LOOKING AT IT ANOTHER WAY, THIS IS THE ADOPTED FROM LAST YEAR WAS 1417. IF YOU WERE TO GO DOWN TO THE NO NEW REVENUE RATE, YOU GO DOWN TO 1651. YOU STILL HAVE AN INCREASE. NOW, ONCE AGAIN, THIS IS LOOKING AT THE AVERAGE HOME VALUE. EVERY SINGLE HOME IS GOING TO BE DIFFERENT. THIS IS JUST THE AVERAGE FOR THE WHOLE CITY. NOW, IF YOU GO DOWN TO THE NO NEW REVENUE RATE, WE'VE GOT IN HERE 42.65 CENTS. YOU GO DOWN TO THE NO NEW REVENUE RATE AT 41.77. THEY WOULD SAVE $34 OFF THIS SCENARIO. THIS IS A LOOK AT ALL FOUR OF THE ENTITIES THAT THE TAXES ARE PAID INTO. THE CITY OF PLANO AND PISD'S NUMBERS OR VALUES, THAT'S WHAT EVERYBODY IS PROJECTING HERE, WE HAVE NOT HEARD FROM COLLIN COUNTY AND HAVE NOT HEARD FROM THE COLLEGE DISTRICT BUT IF YOU WERE TO ADD UP EVERYBODY RIGHT NOW BASED ON AN AVERAGE HOME VALUE, THEY WOULD BE SALES TAX.$8,871. SALES TAX IS ONE OF OUR FINANCIAL POLICIES. WE HAVE BEEN UNDER THAT THREE-YEAR AVERAGE EVER SINCE 2008 -- YES. SINCE 2008. THESE ARE THE VARIOUS SCENARIOS THAT WE HAVE FOLLOWED THE LAST COUPLE OF YEARS. WANTED TO LET Y'ALL KNOW -- I THINK ACTUALLY THE CITY COUNCIL -- SOME CITY COUNCIL MEMBERS HAD MENTIONED THIS. WE DO THE THREE-YEAR AVERAGE. WE NET OUT ANY AUDIT ADJUSTMENTS AND THEN THAT'S NORMALLY WHAT WE GO IN AND OJECT. WELL, THIS YEAR IF WE WERE TO DO THE THREE-YEAR AVERAGE, WE'RE COLLECTING $104 MILLION THIS YEAR. YOUR THREE-YEAR AVERAGE WOULD BE AT $95 MILLION, WHICH IS SIGNIFICANTLY LOWER. SO Y'ALL TOLD US GO IN AND ADD INFLATION INTO THE NUMBER AND THAT'S WHAT WE HAVE DONE. WE HAVE ADDED A 7% INFLATIONARY FACTOR IN HERE. SO HERE'S WHAT IS INCLUDED IN YOUR BUDGET. LET ME JUST GO PAST THAT. RIGHT NOW $104 MILLION IS WHAT WE ARE PROJECTING WE'RE GOING TO COLLECT THIS FISCAL YEAR. WE DID THE THREE-YEAR AVERAGE, ADDED THE 7% SO FOR NEXT YEAR WE ARE PROJECTING $100 MILLION. THIS THREE-YEAR CAP HAS WORKED REALLY WELL FOR US. IN FACT, I KNOW A LOT OF OTHER CITIES THAT ARE STARTING TO USE IT. IT INSULATES YOU LIKE IF A RECESSION IS REALLY COMING, AS THEY'RE ALL MENTIONING IN THE NEWS. WE DO KNOW THAT WE HAVE PEAKED AS FAR AS OUR INCREASES ON THE AUGUST 13th CITY COUNCIL WORK SESSION I'M GOING TO BRING YOU A WHOLE BUNCH OF SALES TAX NUMBERS BACK SO YOU CAN SEE WHAT'S ACTUALLY GOING ON. BUT THIS IS WHERE WE ARE TODAY. OUR SALES TAX CAP POLICY HAS BEEN WONDERFUL. WE HAVE BEEN ABLE TO ADD $24.9 MILLION TO OUR CAPITAL MAINTENANCE FUND, 6.8 TO THE ECONOMIC DEVELOPMENT INCENTIVE FUND, PLUS A HOST OF OTHER ONE-TIME EXPENDITURES HAVE BEEN FUNDED BY THAT SALES TAX CAP POLICY. THIS PAST YEAR Y'ALL DECIDED OUR EXCESS SALES TAX FROM LAST YEAR TOTALED NEARLY $3 MILLION AND WE DID PUT THAT INTO CAPITAL MAINTENANCE FUND. SOME BUDGET HIGHLIGHTS. AS MARK MENTIONED, WE HAVE NO NEW PROGRAMS OR SERVICES INCLUDED IN HERE. WE ARE AT 30 DAYS OF WORKING CAPITAL IN THE GENERAL FUND. WE HAVE $18.2 MILLION THAT HAS BEEN APPLIED TO THE PUBLIC SAFETY SALARIES. WE ALSO HAVE TWO CENTS OTHE TAX RATE, $10.3 MILLION WILL GO INTO THE ECONOMIC DEVELOPMENT INCENTIVE FUND. THE 3.5% ACROSS THE BOARD SALARY INCREASE TOTALING $8 MILLION HAS BEEN INCLUDED. PUBLIC SAFETY EXPENDITURES, WE ARE ADDING IN $6.9 MILLION FOR PUBLIC SAFETY. THAT INCLUDES 23 POSITIONS, EQUIPMENT, AND PROGRAM ENHANCEMENTS IN POLICE, FIRE, AND PUBLIC SAFETY COMMUNICATIONS. WE ADDED IN AN ADDITIONAL $2 MILLION FOR THE CAPITAL MAINTENANCE FUND TRANSFER. YOUR LIBRARY BOOKS ARE AT $.4 MILLION. ON LIBRARIES WE ALSO HAVE FUNDED -- IT'S NOT IN THE GENERAL FUND, IT'S IN THE TECHNOLOGY FUND -- $1.6 MILLION TO CHANGE OUT THEIR RFID LIBRARY BOOK SOFTWARE TECHNOLOGY. CIP COMING ONLINE TOTALS $988 MILLION -- OR THOUSAND DOLLARS SORRY. SEVEN ADDITIONAL POSITIONS. AND IN KEEPING WITH THE PHILOSOPHY THAT WAS DISCUSSED DURING THE 2021 BOND REFERENDUM, WE ALWAYS HAVE TO TELL CITIZENS, WELL, IF ALL THE BOND PACKAGES DO PASS AFTER WE ISSUE ALL THE DEBT, AFTER FOUR YEARS AT THE TIME WE MAY NEED TO INCREASE THE TAX RATE TWO CENTS. WE'RE NOT INCREASING THE TAX RATE TWO CENTS. WHAT WE'RE DOING IS WE'RE PREFUNDING ON THE DEBT SIDE AND WE'VE GOT OUR DEBT RATE GOING UP GRADUALLY. SO AT THE END, IN 2024, WE WILL NOT BE HAVING TO INCREASE THE TAX RATE. AND MORE OF THAT WILL BE DISCUSSED AT THE AUGUST 8th BUDGET WORK SESSION. THIS IS A LISTING OF THE 52 FULL-TIME POSITIONS. FOR THE GENERAL FUND AT TOTALS $4 MILLION. PUBLIC SAFETY, AS WE DID MENTION BEFORE, IS 23 POSITIONS. 16 OF THOSE ARE THE FIREFIGHTERS THAT ARE GOING TO BE GOING ON THE AMBULANCES. SEVEN IS FOR CIP COMING ONLINE. AND THEN WE HAVE A HOST OF OTHER POSITIONS INCLUDING OVER IN PROPERTY STANDARDS FOR THE SHORT-TERM RENTAL PROGRAM THAT RECENTLY WE'RE GOING TO BE IMPLEMENTING. IN ADDITION, WE HAVE SEVERAL OTHER POSITIONS THAT ARE BEING ADDED OVER IN THESE OTHER FUNDS, INCLUDING THAT I HAVE ALREADY TALKED ABOUT ON TECHNOLOGY SERVICES, WE HAVE SEVEN FULL-TIME POSITIONS THAT ARE NEEDED OVER THERE. THE TOTAL COST FOR ALL NEW POSITIONS IS $5.3 MILLION. CIP OPERATING EXPENDITURES COMING ONLINE, WHENEVER YOU HAVE A BOND REFERENDUM WE ALWAYS MENTION TO THE PUBLIC, HEY, IF THESE PROJECTS ARE PASSED, WE'RE GOING TO NEED THIS OPERATING EXPENDITURE, SO WE'RE FOLLOWING THROUGH ON OUR PLAN. SOME OF THEM INCLUDED IN HERE IS FUNDING FOR UTILITIES, CUSTODIAL EXPENSES AT THE FIRE TRAINING CENTER, HERRINGTON LIBRARY, AND THE OAK POINT RECREATION CENTER POOL. ON PARKS AND RECREATION, THIS IS THE ADDITION OF FULL-TIME POSITIONS VEHICLES AND EQUIPMENT FOR OAK POINT PARK NATURE CENTER, HILLSIDE, ATHLETIC FIELDS, AND THE COLLIN COUNTY PARK SITE. ENGINEERING AND PUBLIC WORKS, WE NEEDED SEVERAL ADDITIONAL FULL-TIME POSITIONS , VEHICLES, AND EQUIPMENT FOR THE EXPANDED PROJECT LOAD ASSOCIATED WITH THE BOND REFERENDUM. JUST SOME OTHER INFORMATION. WATER AND SEWER. WE RECEIVED JUNE 30th THEY ARE GOING TO HAVE AN INCREASE OF 13% ON THE WHOLESALE WATER RATES. ORIGINALLY WE HAD PLANNED ON A 5% INCREASE. WHEN WE RECEIVED THE LETTER, WE WENT AHEAD -- WE'RE BRINGING BACK IN WHEELDON FINANCIAL ADVISERS ARE WORKING ON UPDATING OUR WATER AND SEWER RATE MODEL. WE WILL HAVE A PRESENTATION TO CITY COUNCIL AT THE AUGUST 13th BUDGET WORK SESSION. IN ADDITION, THE WER YEAR ENDS JULY 31st. IT LOOKS LIKE WE'RE GOING TO USE 22 BILLION GALLONS. LAST YEAR WE USED 20. THE YEAR BEFORE WE ONLY USED 18 BILLION GALLONS. THE WASTEWATER TREATMENT IN UPPER EAST -- SORRY. LET'S GO BACK. PRELIMINARY ESTIMATES ARE SHOWING WE'RE PROBABLY GOING TO BE INCREASING WATER RATES BY 9%. ORIGINALLY WE HAD 5%. IT'S PROBABLY GOING TO BE 9%. WASTEWATER TREATMENT IN UPPER EAST FORK INTERCEPTOR CONTRACT COSTS ARE GOING UP BY $4.3 MILLION. PRELIMINARY ESTIMATES SHOW THAT WE'RE GOING TO NEED AN 8% INCREASE ON WASTEWATER. ALL THE RATE INCREASES WILL BE IMPLEMENTED ON NOVEMBER 1, 2022. IN ADDITION, THE WATER AND SEWER CIP, WHICH YOU WILL HEAR MORE ABOUT AT THE AUGUST 8th BUDGET WORK SESSION, WE HAVE BEEN ON THE PAY AS YOU GO PHILOSOPHY SINCE 1993. THE FUND -- BOTH FUNDS,ATER AND SEWER, ARE STARTING TO GO IN A DEFICIT POSITION. THE PAY AS YOU GO, SOMEHOW WE HAVE GOT TO START, WHETHER IF WE INCREASE THE RATES ONE MORE PERCENT, WHICH I KNOW EVERYBODY WOULD HATE TO DO, SOMEHOW WE'VE GOT TO PROVIDE MORE FUNDING TO FUND OUR CAPITAL PROJECTS. IN ORDER FOR US TO GET BY THIS YEAR WE ARE TRANSFERRING $5 MILLION FROM THE GENERAL FUND OVER TO WATER AND SEWER. THE SEWER SIDE OF THE EQUATION, DURIN COVIDHE LAST TWO OR THREE YEARS WE'RE FINALLY BACK TO PRE-COVID LEVELS. WE WERE LOSING $4 MILLION TO $5 MILLION A YEAR ON THAT REVENUE SOURCE BECAUSE OF THE SCHOOLS BEING CLOSED AND COMMERCIALS BEING CLOSED. ANYWAY, WE WILL HAVE MORE DISCUSSION ON THAT. THE ENVIRONMENTAL WASTE FUND, WE ARE NEEDING A RATE INCREASE IN THERE. THEY WERE IN A DEFICIT POSITION. THE PRIMARY REASONS: INFLATIONARY PRESSURE, INCREASE IN THEIR FUEL COSTS, STAFFING SHORTAGES, AND THE RISE IN THE EQUIPMENT COST. IN FACT, ON THOSE TRUCKS, WE ARE HAVING TO PREORDER A COUPLE OF YEARS AHEAD OF TIME ON THOSE TRUCKS TO LOCK IN CHEAPER PRICES. YOU WILL HEAR MORE ABOUT THIS, THOUGH, AT THE AUGUST 13th BUDGET WORK SESSION. RIGHT NOW THOUGH THE 68-GALLON CART, WE'RE LOOKING FOR $1.43 PER MONTH INCREASE. THE 95-GALLON CART, A TWO DOLLARS PER MONTH INCREASE. AND AN EXTRA CART WOULD BE $1.67 PER MONTH INCREASE. THE FUND, EVEN AFTER WE INCLUDE THIS REVENUE INCREASE, IS ONLY AT A DAY WORKING CAPITAL. OUR FINANCIAL GOAL, OUR POLICY IS AT 15 DAYS. THEY WILL BE BRINGING BACK BENCHMARK DATA. MOST OF THE OTHER CITIES WILL BE GOING UP AT THE SAME TIME. AND WE WILL HAVE ALL THAT INFORMATION FOR YOU. CIP, TALKEDBOUT IT A MINUTE AGO, $330 MILLION. STREET IMPROVEMENTS IS THE MAIN ONE AT $127 MILLION. PARKS AND REC IS $44.4 MILLION. WATER AND SEWER AT $42.4 MILLION. THE MUNICIPAL DRAINAGE, THAT $25.3 MILLION, THAT IS COLLIN COUNTY MALL. MUNICIPAL FACILITIES AT $25 MILLION. THEN WE HAVE TECHNOLOGY AT $9 MILLION. INCLUDED IN THE BUDGET IS THE PRINCIPAL AND INTEREST PAYMENT. IN ORDER TO ISSUE A TAX NOTE, $9 MILLION FOR SEVERAL PROJECTS THAT YOU WILL HEAR MORE ABOUT FOR OUR TECHNOLOGY PROJECTS. ANYWAY, IT'S A TAX NOTE. IT WOULD STEM OVER SEVEN YEARS BUT WE WILL BE DISCUSSING MORE INFORMATION ON THAT. WE PLAN ON HAVING A BOND SALE. AS YOU KNOW WE HAD THE $364 MILLION BOND AUTHORIZATION. THIS IS THE SECOND YEAR THAT WE WILL BE IMPLEMENTING AND WORKING ON THE PROJECTS. THE TOTAL FOR THE BOND SALE THAT WILL HAPPEN NEXT SPRING IS $80.7 MILLION. IT'S FOR PARKS AND REC MAINTENANCE FACILITIES, LIGHTING REPLACEMENTS, AND COMMUNITY AND NEIGHBORHOOD PARK RENOVATIONS. ON THE STREET SIDE, STREET REPAIRS, RESIDENTIAL STREETS, ALLEY REPAIRS, AND ON PUBLIC SAFETY. FIRE STATION 5 REMODELING AND THEN THE COUNCIL CHAMBERS RENOVATION. THE CAPITAL MAINTENANCE FUND, ONCE AGAIN THIS IS ONE OF OUR POLICIES AND OUR BEST PRACTICES. NOW, THIS -- I WOULD LIKE, JASON, WHAT IN THE WORLD? LOOK AT THE FY '22. OUR GOAL IN THIS FUND IS TO PROVIDE FUNDING THAT'S EQUAL TO 75% OF THE ANNUAL DEPRECIATION. THE REASON FOR THAT 96% IS THIS WORKS OFF REVENUE. COMPARED TO THE ANNUAL DEPRECIATION. WE'VE HAD --AST YEAR WE HAD EXCESS SALES TAX GO IN THERE. THIS PAST YEAR YOU HAD EXCESS SALES TAX PLUS ARPA, THE $8 MILLION IN ARPA. SO THAT'S WHAT IS JUST A ONE-TIME THING. ANYWAY, NEXT YEAR WE WILL GO BACK DOWN TO THE 76, 75% IS WHERE WE WANT. OKAY. LET'S TALK ABOUT SOME DATES. OF COURSE TONIGHT WE SUBMIT THE RECOMMENDED BUDGET AND CIP TO Y'ALL. WE ALSO WILL HAVE IT ON THE WEITE AND ALL LIBRARIES. IN ADDITION, WE HAVE UPDATED OUR PORTAL. THE ONLINE PORTAL THROUGH SOCRATA. THAT SHOULD BE UP AND RUNNING TOMORROW. AUGUST 8 YOU WILL HAVE A PRESENTATION REGARDING THE PROPOSED CIP. PUBLIC HEARING ON THE OPERATING BUDGET AND COMMUNITY INVESTMENT PROGRAM. THIS IS THE EVENING WHERE YOU WILL DECIDE WHAT THE PROPOSED PROPERTY TAX RATE WILL BE. IT GOES INTO THE PAPER THE NEXT DAY AND YOU ALSO WILL APPROVE THE CERTIFIED TAX ROLL THAT COMES IN FROM COLLIN COUNTY AND DENTON COUNTY. AUGUST 11th WE HAVE A TOWN HALL MEETING ON THE BUDGET AND CIP. AUGUST 13th IS AN ALL-DAY SATURDAY BUDGET WORK SESSION. THIS YEAR, THE LAST COUPLE OF YEARS WE'VE BEEN DOING THE GRANT FUNDING FOR ARTS, SOCIAL SERVICES, ALL THAT HERITAGE PRESERVATION ON WEDNESDAY. IT'S BEEN ROCKING AND ROLLING PRETTY GOOD SO WE DECIDED TO MOVE IT TO SATURDAY MORNING. FORWARD TO ON SATURDAY. I HAVE TENTATIVELY PUT IN HERE THE PUBLIC HEARING ON THE TAX RATE ON AUGUST 22, WHICH IS A MONDAY. AND THEN ON SEPTEMBER 12th, THE COUNCIL ADOPTS THE OPERATING BUDGET, CIP AND SETS THE TAX RATE. WHICHEVER ONE YOU WANT, YOU CAN EITHER HAVE THE TAX RATE ON THE 22nd OR ON THE 12th. THEY CHANGED THAT UNDER SENATE BILL 2. YOU ONLY HAVE TO HAVE ONE. AND THEN OF COURSE THE NEW FISCAL YEAR BEGINS. LIKE I MENTIONED, ALL THIS WILL BEVAILLE AT THE LIBRARIES AND ON OUR WEBSITE AND THE OPEN BUDGET WEB PORTAL. AND WHAT QUESTIONS DO YOU HAVE? >> Mayor Muns: THANK YOU, KAREN. ANY QUESTIONS FOR KAREN? SHELBY. >> Williams: KAREN, I WANT TO TAKE THE OPPORTUNITY TO RECOGNIZE YOU AND THE REST OF STAFF DENISE MARK EVERYBODY WHO HAS CONTRIBUTED TO THIS. PUTTING TOGETHER A BUDGET UNDER THE CONDITIONS WE FACED THE LAST COUPLE OF YEARS ISN'T EASY AND WE ALL MADE IT LESS EASY. SO I'M DEEPLY APPRECIATIVEF THE EFFORTS. >> Rhodes-Whitley: THANK YOU VERY MUCH. I'LL PASS IT ON. >> Williams: WHILE I WOULD LOVE TO SEE IF WE COULD COME UP WITH THAT EXTRA $4.5 MILLION TO GET THE NO NEW REVENUE RATE, I WANT TO STATE THAT I AM NOT WILLING TO FOREGO THE 3.5% ACROSS THE CURRENT INFLATIONARY ENVIRONMENT. I WOULD LIKE FOLKS TO RECOGNIZE THAT EVEN A 3.5% PAY INCREASE IS A PAY CUT IN REAL TERMS. THAT'S NOT SOMETHING I'M WILLING TO DO WITHOUT. >> Rhodes-Whitley: THANK YOU FOR YOUR COMMENTS. >> Mayor Muns: COUNCIL MEMBER RICCIARDELLI. >> Ricciardelli: THANK YOU, MAYOR AND THANK YOU, KAREN FOR THAT GREAT PRESENTATION. I WANT TO ECHO WHAT COUNCIL MEMBER WILLIAMS SAID, WHAT YOU AND MARK AND YOUR WHOLE TEAM HAVE DONE IN CONDITIONS THAT HAVE BEEN UNCERTAIN IN A VARIETY OF WAYS TO COME UP WITH A PROPOSED BUDGET IS A REMARKABLE ACCOMPLISHMENT AND, YOU KNOW, A GREAT STARTING POINT FOR THIS PROCESS. THANK YOU FOR YOUR GREAT WORK ON THAT. JUST AS A PRELIMINARY QUESTION, I WANTED TO LK ABOUT BUDGETED ATTRITION IN POSITIONS. I NOTICED IN THE BUDGET THAT IT LOOKS LIKE IN DIFFERENT FUNDS IT'S BUDGETED AT EITHER 4% OR 1% AND MY RECOLLECTION IS THAT HISTORICAL ATTRITION MAY BE HIGHER THAN THAT AND SO I WAS WONDERING HOW WE CAME UP WITH THAT ATTRITION AND WHAT IMPACT THAT WOULD HAVE ON THE BUDGET IF WE USED HISTORICAL ATTRITION? >> Rhodes-Whitley: THAT'S A VERY GOOD QUESTION. WHAT HE IS ASKING ABOUT IS ATTRITION. FOR DIFFERENT FUNDS WE USE A DIFFERENT ATTRITION RATE. THE WAY THE BUDGET DEPARTMENT DOES ALL SALARIES AND BENEFITS. THE WAY WE CALCULATE SALARIES, ALL THE ATTRITION, ALL THE SAVINGS, THE MINUTE WE DO, THE SALARY PROJECTIONS HAVE ALREADY BEEN ACCOUNTED FOR FOR THE LAST EIGHT MONTHS. WE HAVE TO COME UP WITH A FIGURE -- AND IT IS 4% RIGHT NOW IN THE GENERAL FUND. SOME OF THE OTHER FUNDS THOUGH, LIKE WATER AND SEWER AND MUNICIPAL DRAINAGE, THEY HAD A HIGHER ATTRITION RATE, LIKE 18%. BUT WE'VE ALREADY ACCOUNTED FOR THAT. AND NOW THEY'RE N HING AS MANY LABOR SHORTAGES. WE CALL UP THE DIRECTORS THEMSELVES, WHEN ARE YOU PLANNING ON HIRING XYZ? WHAT ARE YOU SEEING FOR THIS? WE WORK WITH HR. SO ALL THE ATTRITION'S PRETTY MUCH IN HERE. IF YOU WERE TO LOOK -- NORMALLY WE HAVE ON THE ANNUAL BUDGET FOR 2021 VERSUS THE REESTIMATE FOR 21-22. NORMALLY YOU'LL SEE SALARY SAVINGS IN THERE. WE DON'T HAVE IT THIS YEAR. TWO PRIMARY REASONS: MID-YEAR WE SAW WHAT WAS GOING ON WITH THE HEALTH INSURANCE FUND. WENT AHEAD AND INCREASED THE REESTIMATE 5% ON THE HEALTH INSURANCE SIDE. SO THAT TOOK CARE OF THAT. ALSO, WE WOULD LOVE IT IF PEOPLE WOULD QUIT RETIRING. [LAUGHTER] WE HAVE A LOT OF RETIREES. NORMALLY WE GO IN AND WE PROJECT EVERY YEAR $2 MILLION. WE'RE OVER $3 MILLION AND WE ARE NOT EVEN AT THE END. SO THAT TOOK YOUR SALARY SAVINGS. ANOTHER THING ON SALARY SAVINGS. IT IS NOT ALLOWED TO BE USED. WE CAN'T HAVE DEPARTMENTS -- DEPARTMENTS DON'T CALL US UP, HEY, I NEED THIS FOR XYZ. WE JUST DON'T DO IT. AGREE MARK? >> 100%. WE CONTROL THAT THROUGH THE BUDGET OFFICE SO IT DOESN'T BECOME A FLOAT DOWN TO OTHER OPERATIONAL ASPECTS BECAUSE AS WE MENTIONED OUR PERSONNEL COSTS TYPICALLY ARE BETWEEN 60 AND 70% OF OUR ENTIRE BUDGET. THE OTHER THING THAT KAREN WAS MENTIONING, WHEN YOU LOOK AT OUR SALARY COSTS, THAT ALSO INCLUDES OUR OVERTIME COSTS AND WE HAVE SEEN A TREMENDOUS AMOUNT OF OVERTIME NEEDED WHICH TRANSLATES TO THE POSITIONS COMING THROUGH. TO YOUR POINT, COUNCILMAN, IN THIS ENVIRONMENT OVER THE LAST COUPLE OF YEARS, OUR ATTRITION RATES HAVE ACTUALLY BEEN REMARKABLY LOW DUE TO THE STABILITY OF THE ORGANIZATION AND WHAT WE'VE SEEN IS PEOPLE THAT WERE CONTEMPLATING RETIREMENT HELD OFF BUT NOW WE'RE CATCHING UP ON THAT AND SO SOME OF THOSE PEOPLE ARE EXTREMELY TENURED. WE'RE SEEING 30, 35, AND 40-YEAR EMPLOYEES RETIRE. THEY HAVE ACCRUED A LITTLE BI OFT WE'RE PAYING OUT. >> Ricciardelli: THANK YOU FOR THAT INFORMATION. AND THEN ANOTHER QUESTION THAT GOES ALONG WITH THIS -- AND MY APOLOGIES IF IT'S IN THE DOCUMENT. I CAN'T SAY I HAVE MADE MY WAY ALL THE WAY THROUGH THE THOROUGH 932-PAGE BUDGET DOCUMENT YET. OBVIOUSLY THERE'S GOING TO BE LEAD TIME FOR THE NEW POSITIONS THAT ARE, YOU KNOW, THAT ARE IN THE BUDGET. IN FACT, WITH, YOU KNOW, PUBLIC SAFETY POSITIONS. YOU OFTEN HEAR OF AN 18 MONTH LEAD TIME. I KNOW FOR POLICE OFFICERS COMING ONLINE. HOW IS THAT REFCTED IN THE BUDGET IF WE WERE TO APPROVE ALL OF THESE POSITIONS? >> Rhodes-Whitley: IT IS NOT. THE LAST YEAR WHAT WE DID, TO COVID, ONCE WE GOT FINISHED ROLLING ALL THIS OUT, WE WENT AHEAD AND LET THEM START POSTING. NOW, SEVERAL OF THE POSITIONS THAT ARE INCLUDED IN HERE HAVE DIFFERENT START DATES. IT JUST DEPENDS ON WHEN THE DIRECTOR SAID. THAT WILL BE SOMETHING MORE OF AN ATTRITION OR SALARY SAVINGS FOR NEXT YEAR. >> Ricciardelli: GOTCHA. >> COUNCILMAN, ON THE PUBLIC SAFETY SIDE, WHEN THOSE EMPLOYEES START GOING THROUGH THE TRAINING, WE'RE PAYING THEM THAT ENTIRE TIME. >> Ricciardelli: THAT MAKES SENSE, BEFORE THEY COME ONLINE BEING OUT THERE DOING THEIR JOB, WE'RE STILL PAYING THEM. I GUESS 18 MONTHS WOULD BE WRONG BECAUSE THAT'S UNTIL THEY'RE READY TO GO. >> THAT'S UNTIL THEY ARE RELEASED IN THE FIELD ON THEIR OWN. PRIOR TO THAT THEY'RE STILL OUR EMPLOYEE AND WE'RE STILL PUTTING THEM THROUGH TRAINING AT THAT TIME. >> Ricciardelli: THAT MAKES SENSE. THANK YOU FOR THAT INFORMATION. >> Mayor Muns: MAYOR PRO TEM. >> SO YOU MENTIONED THE DECREASE WE HAD IN OUR REVENUE SOURCES FOR WATER AND SEWER DURING COVID. DURING THAT TIME DID ALL OF OUR COSTS STAY FLAT? >> Rhodes-Whitley: NO, WE DID RECEIVE -- HER QUESTION WAS THE REVENUE LOSS ON THE NORTH TEXAS MUNICIPAL WATER DISTRICT. WHAT THEY DO IS, YOU KNOW, IT GOES BY THAT ANNUAL. WE LOST MONEY THOUGH ON THE WASTEWATER SIDE BECAUSE PEOPLE WEREN'T FLUSHING THE TOILETS. IT WASN'T GOING ANYWHERE. ANYWAY, THEY DO SEND US BACK A CREDIT. WE DID GET A CREDIT. OFF THE TOP OF MY HEAD I DON'T KNOW WHAT IT IS BUT IT IS INCLUDED WITHIN THE WATER AND SEWER FUND THAT WE DID GET BACK A CREDIT. BUT YOU DON'T GET A CREDIT BACK FOR EVERYTHING. YOU JUST GET A PORTION OF THE OPERATIONS BACK. ON THE WASTEWATER SIDE THEY HAVE A TREMENDOUS AMOUNT OF DEBT THAT THEY'RE PAYING FOR. YOU DO NOT GET THAT BACK. >> Israelson: THE PROPORTION IS TYPICALLY ON THE CHEMICALS AND ELECTRICITY SIDE OF THINGS. IT'S A VARIABLE COST THEY SEND THAT CREDIT GET APPLIED BACK IN AS SOON AS WE RECEIVE IT TO THE FUND TO LOWER THE OVERALL COST. WE DON'T SET IT ASIDE AS AN OPERATIONAL WAY TO SPEND THAT, WE IMMEDIATELY PUT THAT TOWARDS THE FUND BALANCE TO BE ABLE TO INCORPORATE THAT INTO OUR NEXT RATE. WE'RE A YEAR IN ARREARS, IF YOU CONSIDER HOW THAT WORKS. WE GET THAT CREDIT, APPLY IT, AND IT AFFECTS THE RATES THAT WE ACHIEVE NEXT YEAR. >> Mayor Pro Tem: MY SECOND QUESTION REGARDING THE WATER AND THE SEWER. YOU SAID WE HAVE TO GET OUR BALANCE UP SO THAT WE HAVE MONEY TO PAY FOR CAPITAL PROJECTS THAT WE NEED. DID I UNDERSTAND THAT CORRECTLY? >> Rhodes-Whitley: YEAH, ON AUGUST 8 YOU WILL SEE WHAT'S GOING ON ON THE WATER AND SEWER CIP. >> Mayor Pro Tem: OKAY. >> Rhodes-Whitley: THIS IS NOT THE OPERATING PART, THIS IS THE CAPITAL IMPROVEMENT PROGRAM. THE OPERATIONS SIDE, WE LIKE TO HAVE 60 DAYS OF WORKING CAPITAL. WE'RE AT 56 RIGHT NOW. WHAT'S GOING ON IN THE CIP, WE HAVE A NUMBER OF CITAL PROVEMT PRECTSHAT WE ARE NEEDING TO DO. WE'VE BEEN ON PAY AS YOU GO FOREVER AND NOT ISSUING DEBT. THE ONLY DEBT WE'VE BEEN ISSUING IS TO HAVE THE WATER METER CHANGE OUT PROGRAM. SO THIS NEXT YEAR WE WOULD LIKE TO HAVE A DISCUSSION ARE WE GOING TO KEEP WITH THE TAKE OR PAY OR ARE WE GOING TO GO BACK TO ISSUING DEBT, ESPECIALLY ON SOME LARGER PROJECTS. SO FOR RIGHT NOW WE GOT THE $5 MILLION TRANSFER. THAT TRANSFER ACTUALLY IS PINPOINTED TOWARDS THE PLANO PARKER PARALLEL INTERCEPTOR SEWER PROJECT, BECAUSE WE LOST SO MUCH MONEY ON THE SEWER SIDE DURING COVID. >> Mayor Pro Tem: OKAY. THEN MAYBE I'M CONFLATING A COUPLE OF THE THINGS YOU SAID BUT IS THERE AN OPPORTUNITY TO& TAKE SOME OF EITHER THE EXCESS SALES TAX OR THAT EXTRA AMOUNT THAT WE HAVE IN CAPITAL MAINTENANCE THIS YEAR THAT YOU SHOWED US AND USE SOME OF THAT MONEY FOR THESE WATER AND SEWER PROJECTS SO THAT WE DON'T HAVE TO RAISE EVERYBODY'S S YEAR? TRASH CAN, THE WATER, THE SEWER. >> Rhodes-Whitley: SHE'S ASKING CAN WE FOREGO SOME OF THE WATER AND SEWER RATE INCREASE IF WE TAKE MONEY FROM THE OTHER PLACES. >> Israelson: I THINK THE DISCUSSION WAS WE HAD PROPOSED EARLIER THROUGH ARPA FUNDS AND THINGS LIKE THAT TO ACTUALLY PUT MONEY TOWARDS THE CAPITAL MAINTENANCE PROGRAM AND OFFSET SOME OF THAT. WHEN WE DID THE BUDGET, WE STILL CONTRIBUTED SOME FUNDS OVER THERE. WE HAVE NOT CONTRIBUTED AS MUCH AS WE HAVE PROPOSED ORIGINALLY. BUT THE ASPECT OF BEING ABLE TO MOVE MONEY OVER TO THE WATER R SOME OF THOSE COSTS FROM SALES TAX ONE-TIME USE FUNDS, THINGS LIKE THA, THAT'S NOT REALLY IN OUR POLICY RIGHT NOW BUT AS WE START HAVING THIS DISCUSSION ABOUT PAY AS YOU GO VERSUS ISSUING DEBT FOR SOME OF THOSE CAPITAL COSTS, THE DEBT COSTS, YOU'RE PAYING INTEREST COSTS. YOU'RE PAYING IT OVER THE LIFE OF THE ASSET BUT IT LOWERS THE IMMEDIATE SIDE OF THINGS. THOSE ARE SOME STRATEGIC DISCUSSIONS WE NEED TO HAVE WITH Y'ALL BUT RIGHT NOW WE DON'T HAVE A DIRECT POOL TO BE ABLE TO PULL FROM TO LOWER THAT CAPITAL COSTECAUSE IT ISN ENTERPRISE FUND SO THE WAY IT'S CURRENTLY SET UP IS THE FUNDS IN THE RATE PAYS FOR ITSELF. WE WOULD HAVE TO FIND SOMETHING TO ALLEVIATE THAT, WHICH WE HAVE DONE WITH THE ARPA FUNDS AS IT COMES THROUGH. >> Mayor Pro Tem: BUT IT IS IN OUR SALES POLICY TO USE EXCESS FUNDS FOR ONE-TIME COST. SO IF THERE IS A ONE-TIME COST WE COULD PUT IT TOWARDS. THAT'S WHAT I WAS TRYING TO GET AT. >> Israelson: YOU ARE CORRECT. >> Rhodes-Whitley: YOU CAN MOVE THAT OVER INTO THE WATER AND SEWER FUND. FOR SOME REASON AT THE END OF THIS YEAR -- RIGHT NOW WE HAVE PROJECTED 1. SAY IT COMES IN 108. THAT $4 MILLION, IF YOU WANT TO TRANSFER IT OVER TO WATER AND SEWER, YES, YOU CAN. YES. BUT WE DO WANT TO HAVE THIS DISCUSSION BECAUSE FOR YEARS IT USED TO BE $10 MILLION WE WERE TRANSFERRING IN FOR CIP. IT WENT UP TO 12.5. THE $12.5 MILLION IS NO LONGER CUTTING IT. IT'S JUST NOT CUTTING IT. EVERYTHING'S GONE UP. WE HAD A TREMENDOUS LOSS OF REVENUE ON THE WASTEWATER SIDE. OF COURSE, YOU KNOW, NOWE'RE IN A DROUGHT RIGHT NOW BUT THE LAST COUPLE OF YEARS WE HAD EXCESSIVE RAIN, DID NOT MEET OUR REVENUE MODEL AT ALL BECAUSE OF THAT. SO BUT, YES, YOU CAN DO THAT. >> Mayor Pro Tem: SO I'LL JUST MAKE ONE QUICK COMMENT. I KNOW WE DON'T WANT TO ALL GO INTO OUR LONG OPINIONS BUT I'LL JUST SAY AS YOU ALL KNOW WE HAVE LOTS OF INFLATIONARY COSTS, LIKE YOU JUST SAID, BUT FROM THE CITIZENS' PERCEPTION, EVERY DAY I SEE SOMEBODY POSTING I CAN'T AFFORD SCHOOL SUPPLIES. I JUST GOT A STATEMENT FROM MY BANK. THEY REJECTED MY ELECTRIC BILL. THE IDEA THAT WE'RE GOING TO DECREASE OUR TAX RATE BUT THEY'RE GOING TO GET AN INCREASED TAX BILL. WE'RE GOING TO INCREASE HOW MUCH THEIR TRASH CAN COSTS. WE'RE GOING TO INCREASE THEIR WATER BILL AND THEIR SEWER. IT'S JUST HARD FOR ME TO SWALLOW, TO HAND THAT ALL TO THEM. I WOULD LOVE IT IF WE CAN FIND A WAY NOT TO DO IT. I UNDERSTAND IF WE CAN'T BUT IT'S JUST HARD FOR ME TO SIT UP HERE KNOWING HOW HARD IT IS FOR A LOT OF OUR PEOPLE RIGHT NOW TO DO THAT. >> Rhodes-Whitley: WELL, OUR PHILOSOPHY'S BEEN WE PASS THROUGH ALL COSTS ON NORTH TEXAS MUNICIPAL WATER DISTRICT COMING ON. WE HAVE NOT ADDED, WE HAVE NOT CHANGED THAT PHILOSOPHY. WE HAVEN'T ADDED, HEY, WE'RE GOING TO ADD LIKE A PERCENT ON TO A RATE INCREASE JUST FOR CIP. ALL. EVERYTHING THAT WILL BE COMING FORWARD TO Y'ALL AUGUST 13 IS A DIRECT RESULT OF THE CONTRACT COSTS GOING UP FROM NORTH TEXAS MUNICIPAL WATER DISTRICT. >>sraelson MAYOR AND COUNCIL, AGAIN, WE'RE GOING TO HAVE SOME OPPORTUNITIES FOR SOME ONE-ON-ONE. TRUST ME WHEN I TELL YOU THAT THE AFFORDABILITY SIDE OF THINGS IS SOMETHING WE TAKE SERIOUS. FOR US WE KNOW THE CITIZENS' SIDE OF THINGS AND I THINK WE'VE PROVEN OVER THE LAST SEVERAL YEARS THAT WE'RE SENSITIVE TO THAT. BUT PART OF OUR CHALLENGE IS ALSO MAKING SURE THAT WE'RE PAYING FOR AND ACCOUNTING FOR THOSE FINANCIAL POLICIES AND TAKING CARE OF THOSE SERVICES IN A WAY THAT DOES NOT PUT ADDITIONAL RISK INTO OUR MODELS AS WELL. I'M HAPPY TO DISCUSS THESE FURTHER. WE'LL GET INTO A LOT MORE OF THAT AND TALK OPTIONS BUT FOR US I THINK WE ALSO WANT TO MAKE SURE THAT THERE'S A BALANCED APPROACH TO THAT. >> Mayor Muns: THANK YOU, KAREN. >> Rhodes-Whitley: THANK YOU. LOOK FORWARD TO THE NEXT COUPLE OF WEEKS. >> Mayor Muns: SEEING YOU A LOT IN AUGUST. YEAH. OKAY. SO WE HAVE ONE ITEM THAT WE JUST WEDGED IN THERE JUST BECAUSE WE'VE TRIED -- >> I'M MAKING USE OF YOUR TIME.& >> Mayor Muns: HOPEFULLY THIS CAN BE BRIEF. SO THE RULES AND PROCEDURES DISCUSSION BY CITY COUNCIL. >> MAYOR AND COUNCIL, WE HAD A DISCUSSION SEVERAL WEEKS AGO WHERE THERE WAS AN AMENDMENT MADE OR PROPOSED FOR AN ITEM. WE GOT INTO THE COUNCIL'S LANGUAGE FOR THEIR RULES OF PROCEDURE AND THERE SEEM TO BE SOME DIFFERENCE OF INTERPRETATION ON THAT, SPECIFICALLY WHEN YOU LOOK AT SECTION -- HERE WE GO. IT IS SECTION B4. YOU SHOULD HAVE A LAMINATED COPY WITHIN YOUR DRAWER. >> IT DOESN'T SAY B4. >> Israelson: I PRINTED OFF -- THERE WE GO. SO WHEN YOU'RE LOOKING AT THE MOTION TO AMEND -- ACTUALLY THE PARAGRAPH ABOVE IT IN MOTIONS, IT SAYS A MOTION MUST RECEIVE A SECOND FROM ANOTHER MEMBER OF CITY COUNCIL BEFORE IT MAY BE DISCUSSED. IF NO SECOND IS RECEIVED, THE MOTION FAILS. NO OTH MOTIONS CAN BE CONSIDERED UNTIL THE FIRST MOTION IS VOTED ON. THAT IS THE SENTENCE. COMBINED WITH THE BENEATH SECTION THAT SAYS WHEN A MOTION IS ON THE FLOOR AND AN AMENDMENT IS OFFERED, THE AMENDMENT SHALL BE OFFERED PRIOR TO ACTING ON THE MAIN MOTION . THOSE TWO SEEM TO PROVIDE A LITTLE BIT OF CONFUSION FOR COUNCIL. AND SO WE WANTED -- THE DISCUSSION WAS TO BRING THIS BACK SO THAT WE HAD CLARITY AND THERE WAS A PREDICTABLE PROCESS FOR CONSIDERING MOTIONS. >> Williams: I'D LIKE TO MAKE A MOTION TO AMEND THE LANGUAGE, NO OTHER MOTIONS CAN BE CONSIDERED TO SAY NO UNRELATED MOTIONS CAN BE CONSIDERED. I THINK THAT MIGHT CLEAR UP EVERYTHING. A MOTION TO AMEND, A MOTION TO TABLE, SOMETHING THAT IS RELATED TO THE CURRENT MOTION. >> Mayor Muns: IT'S NOT FOR ACTION BUT WE'LL PUT IT ON FOR ACTION ON THE 8th. >> Williams: THAT'S MY SUGGESTION. >> Tu: MAYOR, WAS THAT THE ISSUE THAT WE HAD? >> Mayor Muns: YEAH, I THINK THE QUESTION WAS THERE'S IN OUR POLICY OR ORDINANCE THAT IT SAYS ONE THING ON THE PARAGRAPH ABOVE AND THEN IT SAYS ANOTHER THING ON THE MOTION TO AMEND. AND I THINK IT'S CLEARLY CONFUSING. >> Williams: I THINK THE SPIRIT IN WHICH THIS WAS FIRST CRAFTED WHEN IT SAYS NO OTHER MOTIONS MEANT UNRELATED. MOTIONS ON DIFFERENT MATTERS. >> Mayor Muns: YEAH. BUT MY CONFUSION IS IN ALL MY YEARS OF DOING THIS -- AND I AM NOT A ROBERT'S RULES OF ORDER SCHOLAR BUT WHEN THERE'S A MOTION AND A SECOND IT SEEMS TO ME THAT MOTION NEEDS TO BE VOTED BEFORE ANY AMENDMENT CAN COME. BUT, RICK, I'M SORRY. DID YOU HAVE SOMETHING TO SAY? >> Smith: I THINK THE INTENT, WHEN WE ADOPTED THESE REGULATIONS AND PROCEDURES THAT WE HAVE HERE NOW WAS WHAT WE WANTED TO AVOID WAS A MOTION T GETTING RUSHED IN THERE AND NOT HAVING TO HAVE OTHER DISCUSSION. SO WE SAID WE NEED TO HAVE A PROCESS OR WE NEED TO AGREE THAT SOMEONE CAN BRING UP AN OPTION TO PUT AN AMENDMENT ON THAT BECAUSE ONCE YOU GET THE MOTION AND SECOND AND WE VOTE ON IT, IT'S DONE. IT'S KIND OF IRRELEVANT TO BE ABLE TO MAKE AN AMENDMENT AFTERWARDS. YOU HAVE TO GO THROUGH THE WHOLE PROCESS AGAIN. THAT WAS THE INTENT BUT I THINK YOU'RE RIGHT. THE LANGUAGE IS A LITTLE LESS THAN SUPER CLEAR. WE UNDERSTAND, I THINK WE HAD JUST FORGOTTEN. IT'S NEVER REALLY CAMEP UNTIL THREE OR FOUR MEETINGS AGO. I THINK AMENDING IT TO SIMPLIFY IT SOMEWHAT WOULD BE GOOD. BUT ALL IN ALL ITS INTENT IS GOOD. >> Tu: SO SOMEONE MAKES A MOTION. MOTION TO APPROVE. AND THEN SOMEONE SECONDS IT IMMEDIATELY. BUT THEN SOMEBODY LIKE ANTHONY OR SHELBY JUMPS UP AND SAYS, BUT WAIT. >> OR JULIE OR ME. IT COULD BE ANYBODY. >> Tu: THERE'S SOMETHING ELSE I REALLY WANT YOU GUYS TO CONSIDER. KE ONE, TWO, THREE. SO WHAT DO WE DO AT THAT TIME? WHAT IS THE CURRENT PROCEDURE FOR DEALING WITH THAT RIGHT NOW? >> I THINK DEPUTY MAYOR PRO TEM, I THINK THERE'S BEEN A LONG PRACTICE OF WHAT I WOULD CALL FRIENDLY AMENDMENTS THAT PEOPLE HAVE MADE SUGGESTIONS AND THEY HAVE BEEN INCORPORATED INTO ORIGINAL MOTIONS. PEOPLE HAVE -- AND I THINK THE MOTION TO TABLE EARLIER THIS WEEK WAS ONE OF THOSE WHERE IT CAME BACK AND THERE WAS FURTHER DISCUSSION. THERE WAS A REVISION OF THE MOTI. AND I THINK -- AND THIS IS JUST MARK'S TERM SO I APOLOGIZE. THE FRIENDLY SIDE OF THINGS SEEMS TO GO VERY SMOOTH. WHEN THERE IS SOMETHING THAT THERE MIGHT BE A SLIGHT DISAGREEMENT ON, I THINK THAT'S THE ASPECT THAT WE'RE TALKING ABOUT WHERE THERE'S THIS ASPECT OF AN ALTERNATIVE OR SOMETHING THAT'S A LITTLE BIT DIFFERENT AND HOW DO YOU CONSIDER THAT IF THE PERSON THAT MAKES THE ORIGINAL MOTION IS UNWILLING TO AMEND THEIR MOTION. DID I CAPTURE THAT FAIRLY? >> Tu: I STILL DON'T UNDERSTAND. SO WHERE DO WE VOTE? ATHE POI WHERE THERE'S A MOTION AND A SECOND ON THE ORIGINAL WHATEVER RESOLUTION. THEN THERE IS A SUGGESTION FOR AN AMENDMENT. AND THAT ONE IS ALSO SUPPORTED BY SOMEBODY. SO WHAT DO WE DO? ARE WE INCORPORATING THEM ALL INTO THE ORIGINAL MOTION AND VOTE ON THE AMENDED MOTION? OR DO WE VOTE ON DO WE WANT THE AMENDMENT AT ALL FIRST AND THEN, IF THAT PASSES, THEN WE DO ANOTHER MOTION IN WHICH INCORPORATES THE AMENDMENT INTO THE ORIGINAL -- >> Israelson: YOU HAVE DESCRIBED IT VERY WELL. >> Tu: IS THAT THE WAY? >> Israelson: THAT'S WHAT'S BEING DISCUSSED RIGHT NOW. >> Mayor Muns: THAT'S THE WAY IT WOULD WORK UNDER THE WAY IT'S WRITTEN. ANTHONY, I'M SORRY.ORRY.ORRY.OR. MAYOR. SO I WAS JUST GOING TO SAY, YOU KNOW, I DON'T KNOW IF EVERYONE HAD A CHANCE TO REVIEW THE SURVEY OF OTHER CITIES' RULES THAT MARK SENT OUT BUT THE VAST MAJORITY OF NEIGHBORING CITIES ALLOW AN AMENDMENT TO BE ACTED ON BEFORE THE MN MION. AND I THINK THE SPIRIT OF THAT IS WHAT COUNCIL MEMBER SMITH TALKED ABOUT, AFTER THE MOTION IS PASSED THE AMENDMENT IS MOOT. SO YOU REALLY NEED TO ACT ON THE AMENDMENT FIRST. OUR HISTORICAL PRACTICE WAS OUT OF THE MAINSTREAM. I RECALL THE ADOPTION OF IT THE SAME WAY THAT COUNCIL MEMBER SMITH DOES. THE INTENT WAS TO ALLOW A VOTE ON A MOTION TO AMEND BEFORE THE MAIN MOTION IS ACTED ON. I THINK THE PART BEFORE THAT, YOU KNOW, IT'S REALLY NO OTHER MAIN MOTION, UNRELATED MOTION, TO USE COUNCIL MEMBER WILLIAMS'OR, TO BE ACTED ON. IF SOMEBODY SAYS I WANT TO DO SOMETHING DIFFERENT, THAT WOULD BE OUT OF ORDER. BUT IF SOMEBODY SAYS I WOULD LIKE TO TWEAK THAT MOTION, THEN A MAJORITY OF THE COUNCIL COULD VOTE TO DO THAT. OBVIOUSLY WE'RE A CITY OFW,- EXCELLENCE AND SOMETIMES EXCELLENCE MEANS BEING DIFFERENT FROM OTHER CITIES IN WAYS THAT ARE BETTER BUT GOING BACK TO A SYSTEM WHERE THERE'S NO WAY TO AMEND A MOTION ONCE THERE'S BEEN A MOTION AND A SECOND, I THINK WOULD NOT BE BETTER. IT REALLY MAKES IT ARBITRARY WHOEVER GETS THE FLOOR FIRST AND MAKES AOTIO AND OUR TYPICAL PRACTICE IS SOMEBODY WILL JUST TURN ON THEIR MICROPHONE AND MAKE A MOTION. SO THIS COULD LEAD TO CHAOS WHERE PEOPLE HAVE DIFFERENT VISIONS OF WHAT THE MOTION ON AN ITEM SHOULD BE, IT'S GOING TO BE LIKE JEOPARDY. WHO CAN GET IT IN FIRST. EVEN IF WE WAIT FOR THE MAYOR TO RECOGNIZE US, THAT PUTS THE MAYOR IN AN AWKWARD POSITION BECAUSE WHOEVER HE RECOGNIZES FIRST IS GOING TO GET TO DECIDE WHAT WE'RE VOTING ON -- EVEN IF A MAJORITY OF THE COUNCIL WANTED TO VOTE ON SOMETHING. >> Tu: ANTHONY, I THINK MY CONFUSION ISN'T ABOUT THE MOTION TO AMEND. I'M INOTAL AGREEMENT. IF THERE'S AN AMENDMENT, WE NEED TO VOTE ON WHETHER OR NOT WE WANT TO AMENDMENT. >> Ricciardelli: YES. >> Tu: MY PROBLEM IS I THINK AT THE LAST -- I CAN'T REMEMBER WHICH MEETING IT WAS -- THAT WE BASICALLY JUST INCORPORATED THE AMENDMENT INTO THE ORIGINAL ORDINANCE AND THEN WE JUST DID A ONE-TIME VOTE. I THINK THAT'S IRREGULAR. WE NEED TO SEPARATE THOSE TWO VOTES. ARE WE GOING TO DO THE AMENDMENT? OKAY. YES OR NO. IF IT'S YES, THEN WE DO A SECOND VOTE IN WHICH WE -- >> Williams: YEAH, THE ONE YOU'RE TALKING ABOUT IS MY MOTION. IT WOULD HAVE BEEN CLEANER BECAUSE IT WASN'T AN INTERRUPTING MOTION. WHAT WE'RE DISCUSSING HERE IS THE CONCEPT OF AN INTERRUPTING MOTION. YOU'VE GOT ONE MOTION ON THE FLOOR. YOU MAKE AN INTERRUPTING MOTION TO TWEAK THAT IN SOME MANNER. WHAT I DID IN THAT MEETING WAS I -- THERE WASN'T A MOTION ON THE FLOOR. I JUST MADE A STANDALONE MOTION TO AMEND THE ORDINANCE BEFORE US. WE VOTED FOR IT AND THEN WE WERE LEFT WITH HAVING TO MAKE A WHOLE NEW MOTION TO PASS THE THING TO BEGIN WITH. IT WOULD HAVE BEEN MOR EFFICIENT IF I HAD SIMPLY SAID I VOTE TO PASS THIS WITH THE FOLLOWING AMENDMENT. THEN WE WOULD HAVE JUST TAKEN ONE VOTE. BUT IN THE CASE OF AN INTERRUPTING MOTION, I THINK AS HAS BEEN ARTICULATED A COUPLE OF TIMES HERE -- >> Tu: THAT'S NOT WHAT I SAID. IF YOU'RE SAYING I WANT TO MAKE THE MODIFIATION, I WANT TO AMEND THE ORIGINAL WHATEVER ORDINANCE THAT WE WANT TO ADOPT, THEN WE NEED TO VOTE ON THAT FIRST. >> YEAH. >> Tu: AND THEN COME BACK AND SAY NOW THAT -- >> Mayor Muns: AND THAT CAUSED US TO HAVE TO VOTE ON THE AMENDMENT. >> Tu: AND THEN ONCE THAT AMENDMENT EITHER -- IF IT PASSES THEN WE HAVE TO STILL COME BACK TO THE ORIGINAL ORDINANCE. >> Mayor Muns: THE ORIGINAL MOTION. >> Tu: I THINK THE LAST ONE IS REALLY CONFUSING. >> MR. MAYOR, IF I MAY? >> Mayor Muns: YES, GO AHEAD RICK. >> TO KIND OF SOLIDIFY SOME OF THE THINGS THAT THE DEPUTY MAYOR PRO TEM IS SAYING AND ALSO COUNCIL MEMBER RICCIARDELLI IS SAYING, HERE ARE MY THOUGHTS. IF THERE IS A MOTION ON THE FLOOR AND IT IS SECONDED AND ANOTHER INDIVIDUAL INTRODUCES AN AMENDMENT TO THAT MOTION, THE AMENDMENT TO THE MOTION NEEDS TO BE VOTED ON. SO I MAKE AN AMENDMENT TO THE MOTION AND THAT AMENDMENT IS SECONDED. THEN THE AMENDED MOTION IS VOTED ON OR THE AMENDMENT TO THE MOTION IS VOTED ON BUT YOU'RE RIGHT. THEN YOU HAVE TO COME BACK TO VOTING ON THE NOW AMENDED MOTION. IT'S GOING TO TAKE TWO VOTES. THE VOTE TO AMEND THE MOTION AND THEN A VOTE TO APPROVE THE AMENDED MOTION. >> Mayor Muns: MAYOR PRO TEM. >> Mayor Pro Tem: WHAT I'M HEARING Y'ALL SAY IS WE ARE AMENDING MOTIONS. WHAT WE HAVE DONE SOMETIMES IS PEOPLE HAVE SAID MOTION TO APPROVE. AND THEN SOMEBODY HAS COME BACK AND SAID I WANT TO AMEND THAT TO TABLE. THAT'S NOT REALLY -- >> Mayor Muns: NO, IT'S DIFFERENT. >> Mayor Pro Tem: THAT'S COMPLETELY DIFFERENT. THAT'S COMPLETELY CHANGING THE MOTION AND I DON'T WANT IT TO BE WHERE SOMEBODY SAYS, NO, I WANT TO AMEND THAT TO A MOTION TO DENY. THAT'S COMPLETELY CHANGING IT. IF IT'S A MOTION TO AMEND WITH A STIPULATION, THAT'S ONE THING BUT TO COME AND SAY, NOPE, WE'RE GOING TO MOTION TO TABLE THIS. I FEEL LIKE THAT'S TAKING ADVANTAGE OF THE SITUATION TO TRY TO GET YOUR -- YES. SO I DON'T KNOW HOW WE KEEP THAT FROM HAPPENING BUT THAT'S WHAT I'M UNCOMFORTABLE WITH BECAUSE I KNOW THAT HAS HAPPENED BEFORE. >> Grady: AGAIN, IF I MAY MR. MAYOR AND THE POINT THAT THE MAYOR PRO TEM IS MAKING, AND THAT'S A VALID POINT. IF A MOTION IS MADE AND SECONDED AND AN INDIVIDUAL SAYS NO, I WOULD LIKE TO CHANGE THAT TO MOTION TO TABLE, YOU REALLY HAVE TO VOTE ON THE MOTION AND A SECOND. IF IT DOESN'T PASS, THEN A MOTION TO TABLE CAN BE MADE. BUT IF IT PASSES, THEN THE MOTION TO TABLE IS MOOT. >> Mayor Muns: COUNCILMAN SMITH. >> Smith: THANK YOU, MAYOR. ONE OTHER THING -- HONESTLY I DON'T REMEMBER IF IT'S WRITTEN HERE BUT ONE THING WE HAD AGREED UPON -- MAYOR, YOU HAVE DONE A GOOD JOB OF IN RUNNING THE MEETINGS IS THAT WE HAD AGREED THAT MOTION IS MADE, SECOND IS MADE. BEFORE WE VOTE, THOUGH, THE MAYOR WILL -- IF THERE'S ANY OTHER QUESTIONS OR ANY OTHER COUNCIL MEMBER WOULD LIKE TO COMMENT. THAT'S PROBABLY AS IMPORTANT BECAUSE BY DOING THAT THERE MAY BE NOT A NEED TO EVEN HAVE AN AMENDMENT TO THE ORIGINAL MOTION THERE. SO AS LONG AS WE KEEP DOING THAT I THINK WE'RE GOING TO BE IN GOOD SHAPE TOO. >> Mayor Muns: OKAY. WELL SORRY. COUNCIL MEMBER RICCIARDELLI. >> Ricciardelli: I WAS GOING TO SAY I AGREE WITH THE COMMENTS THAT HAVE BEEN MADE, WHAT MAYOR PRO TEM PRINCE SAID COCIL MEMBER SMITH.Y AND I DON'T THINK CHANGING IT FROM APPROVED TO DENY OR A MOTION TO TABLE WOULD BE APPROPRIATE. I THINK THE SITUATIONS WHERE THIS WOULD BENEFIT US IS LIKE THE TATTOO PARLOR IN DOWNTOWN PLANO. THERE WAS A DEBATE, TWO VERSUS ONE AND WE COULD HAVE HAD A VOTE TWO VERSUS ONE, DO WE WANT TO AMEND IT TO MAKE IT THE ONE BY RIGHT OR KEEP IT TO BY RIGHT. I CAN TELL YOU THAT, YOU KNOW, I FAVORED THE ONE BY RIGHT BUT IF WE HAD HAD THAT VOTE THEN, YOU KNOW, I WOULD HAVE FELT LIKE, OKAY, WE DECIDED THAT SUE AND I WOULD HAVE VOTED IN FAVOR OF IT WITH THE TWO BECAUSE WE WOULD HAVE HAD A QUORUM TO SAY WE WANTED TWO INSTEAD OF ONE. THIS YOU HAVE TO VOTE AGAINST THE WHOLE THING. >> Israelson: ACTUALLY COUNCILMAN WILLIAMS MADE A SMALL ADJUSTMENT THAT FLEW BY BUT NO UNRELATED MOTIONS -- RATHER THAN OTHER UNRELATED I THINK IS A BETTER WORD. AND SO WE'LL ADD ON THE MOTION TO AMEND. SO IF WE SAY NO UNRELATED, I THINK THAT PROVIDES CLARITY. THE AMENDMENT SHALL BE ACTED ON PRIOR TO ACTING ON THE MAIN MOTION. WE NEED TO CLARIFY THAT THE AMENDMENT WILL BE ACTED UPON, THEN THE MAIN MOTION WILL BE ACTED ON. WE'RE GOING TO SEPARATE THAT A LITTLE BIT. >> Mayor Muns: I UNDERSTAND. >> Williams: WE MIGHT MAKE IT MORE SPECIFIC TO AVOID FUTURE CONFUSION. INSTEAD OF SAYING NO UNRELATED MOTIONS, SAYING NO MOTIONS OTHER THAN AMEND CAN BE MADE. >> GREAT SUGGESTION . >> Mayor Muns: EVERYBODY OKAY WITH THAT? WE'LL BRING IT BAC AT THE NEXT MEETING AND MAKE IT AN ACTION ITEM. >> GOT IT. >> Mayor Muns: THERE BEING NO FURTHER BUSINESS, MEETING IS ADJOURNED. [MEETING ADJOURNED]