♪ >> Mayor Muns: I NOW DECLARE THAT THE PLANO CITY COUNCIL IS CONVENED IN OPEN SESSION, THAT ALL COUNCILMEMBERS ARE PRESENT, AT THIS TIME WE'LL ASK IF THERE'S ANYONE THAT WOULD LIKE TO ADDRESS THE COUNCIL REGARDING THE BUDGET AND CIP? >> NO SPEAKERS. >> Mayor Muns: ALL RIGHT. I WILL CLOSE THE PUBLIC COMMENTS AND I ASK MARK TO PRESENT THE OVERVIEW. THANK YOU FOR YOUR TIME THIS EVENING TO GO THROUGH THE BUDGET. WE HAVE A NUMBER OF PRESENTATIONS STARTING WITH OUR GRANT FUNDING REQUESTS. WE WILL GO BACK THROUGH A LITTLE BIT OF THE TAX RATE DISCUSSION THAT WE HAD THE OTHER NIGHT JUST FOR CLARITY FOR PUBLIC SAKE. WE'VE BEEN DOING ADDITIONAL HOME WORK ON THE VOTER APPROVED RATE, AND ONE ITEM THAT I WILL POINT OUT TO YOU ON THAT IS THE LAST SEVERAL YEARS, WE'VE BEEN HIGHLY FOCUSED ON THE NO NEW REVENUE RATE, SO THE VOTER APPROVED RATE HAS TOOK A LITTLE ADDITIONAL WORK FOR US TO GET OUR ARMS AROUND SOME OF THOSE ELEMENTS OF THAT, BUT WE HAVE A SHORT PRESENTATION FOR YOU TONIGHT O THAT. AND THEN WE HAVE SOME STAFF AND ZONING COMMISSIONS TO STAFF AND ZONING COMMISSION -- DECISIONS TO MAKE ON A FEW ADDITIONAL REQUESTS, AN APPEAL OF SOME OF THE GRANT PROVISIONS AND A POSSIBLE CONSIDERATION OF SOME SECURITY PARTICIPATION WITH PISD, AND AT THAT TIME, WE WILL ASK FOR DIRECTION FROM COUNCIL, SO WITH THAT, I'LL KICK IT OVER TO KAREN RHODES-WHITLEY. > MARK. I DIDN'T REALLY HAVE ANY FORMAL -- >> PERFECT. THEN LET'S MOVE STRAIGHT INTO THE -- [ LAUGHTER ] SO THAT IS A LESSON FOR THE AUDIENCE ON HOW WE WANT TO MOVE THIS MEETING ALONG, SO WITH THAT, WE WOULD LIKE TO MOVE STRAIGHT INTO THE GRANT REQUESTS, AND WE'LL MOVE STRAIGHT INTO THE HERITAGE COMMISSION. >> I HAVE NOTHING TO ADD. NO KIDDING. [ LAUGHTER ] [ INAUDIBLE - NO MIC ] >> GOOD EVENING. MY NAME IS HAROLD SICKLER, I'M CHAIR OF THE CITY OF PLANO HERITAGE COMMISSION. AND THANK YOU SO MUCH FOR -- >> UH-HUH. THERE YOU GO. >> OKAY, PERFECT. IT'S MY PRIVILEGE TO REPRESENT THE COMMISSIONERS OF THE HERITAGE COMMISSION AND PRESENT OUR 2023-2024 HERITAGE GRANT RECOMMENDATIONS. THE HERITAGE COMMISSION IS MADE UP OF MYSELF AS CHAIR, NANCY BALDWIN AS VICE CHAIR, NAYYER SALE RASOOL, KAREN BOWEN CHRISTOPHER ROBERTSON, JOHN DUB SPENCER, AND JANE WATSON. IF YOU WANT TO TAKE A MOMENT TO LOOK AT THE SLIDE, I WANT TO TAKE THIS TIME TO TELL YOU ABOUT SOME OF OUR ACCOMPLISHMENTS AS COMMISSION. THE TEXAS POOL DESIGNATION AS PLANO'S 35th HERITAGE LANDMARK WAS COMPLETED THIS YEAR. THE SB WATSON HOUSE RECEIVED PRESERVATION DALLAS AWARD FOR THE RESIDENTIAL RENOVATION CATEGORY. HAGGARD PARK HITAG DISTRICT DESIGN STANDARDS RECEIVED THE 2022 PLANNING ACHIEVEMENT AWARD FROM THE AMERICAN PLANNING ASSOCIATION, TEXAS CHAPTER, WHICH IS A VERY IMPORTANT AWARD. AND THE HERITAGE TAX EXEMPTION ORDINANCE UPDATE WAS COMPLETED AS WELL. AS YOU KNOW, ONE OF OUR BIGGEST TASKS AS COMMISSION IS TO REVIEW CERTIFICATES OF APPROPRIATENESS, APPLICATIONS FOR EXTERIOR WORK ON HISTORIC BUILDINGS, AS YOU CAN SEE, 23CAs OR ISSUED IN 2022. 70% OF THEM WERE APPROVED AT THE STAFF LEVEL WITH 94% OF THAT NUMBER BEING APPROVED IN A DAY OR LESS. IDEAL IN MY PROFESSION WITH A NUMBER OF MUNICIPALITIES IN THE METROPLEX, I GUARANTEE YOU YOU DON'T SEE THINGS COMPLETED IN A DAY IN MOST JURISDICTIONS. THAT TELLS YOU ABOUT THE QUALITY OF THE STAFF OF THE CITY OF PLANO. WE'VE HAD SEVERAL TRAINING OPPORTUNITIES FROM THE NATIONAL PARK SERVICE, THE TEXAS HISTORICAL COMMISSION, AND THE NATIONAL ALLOWANCE. WE ATTENDED A FEW OF THE TRAINING WEBINARS HOSTED BY THE COMMISSIONS. WE'VE QUITE A FEW PROJECTS THAT WE'VE BEEN WORKING ON THAT THE COUNCIL WILL SEE IN THE COMING MONTHS. THE BIGGEST OF WHICH IS CONDUCTING -- IS CONDUCTING THE HISTORIC RESOURCES SURVEY FOR THE 2023 UPDATE OF THE HERITAGE PRESERVATION PLAN. AS NOTED IN YOUR MEMO FOR FISCAL YEAR 2022-24, THE TOTAL AMOUNT -- I MEAN REQUESTED $957,331, WHICH IS $157,331 ABOVE THE AVAILABLE FUNDS ESTIMATED AT $800,000. WHEN IT COMES TO HERITAGE GRANTS, WE HAVE CRITERIA THAT WE APPLY, AND THERE'S MANY THINGS THAT WE DO TO GET TO THE POINT TO COME TO THESE DECISION, BUT OUR GOAL IS TO PRESERVE AND PROMOTE THE CITY OF PLANO'S HERITAGE THEREBY SUPPORTING AND STIMULATING LOCAL BUSINESS AND STRENGTHENING THE CULTURE, PROSPERITY AND THE WELFARE OF PLANO CITIZENS. WE HAVE CRITERIA THAT WE FOLLOW. WHEN WE LOOK AT THE GRANTS CRITERIA, HERITAGE TOURISM AND PUBLIC EDUCATION ARE 50% OF WHAT WE'RE JUDGING THE GRANT REQUESTS ON. THE SECOND CATEGORY IS HERITAGE PRESERVATION MERIT, WHICH IS 25%. AND ADMINISTRATIVE AND FISCAL RESPONSIBILITY, HOW DO THEY HANDLE THE MONEY, HOW DO THEY DO THINGS? THAT IS 25%. AS YOU CAN SEE, AS YOU ARE PROBABLY FAMILIAR WITH, MANY OF THESE GRANTS HAVE BEEN FUNDED, HAVE FUNDED MANY GREAT PROJECTS OVER THE YEARS, AS WELL AS OPERATIONS AND MAINTENANCE OF SUCH ORGANIZATIONS THAT THE HERITAGE FARMSTED MUSEUM AND THE PLANO CONSERVANCY FOR HISTORIC PRESERVATION WHO ARE CURATORS OF THE URBAN MUSEUM. GRANT RECIPIENT ORGANIZATION SAW AN UP SWING IN VISITORS IN 2022. THE FARMSTED MUSEUM HOSTED THE NUMBER OF SUMMER CAMPS, SPECIAL EVENTS SUCH AS LIGHTS AT THE FARM AND COMPLETED THE AMY WILSON HOUSE PROJECT, CEMETERY RESTORATION PROJECT, SEVERAL EXHIBITS AND EVENTS AND PLANO PAST AND PRESENT BOOK. COMPLETED A POOL DECKING PROJECT, MARKETING PROGRAM, AND MOST IMPORTANTLY RECEIVED DESTINATION AS PLANO'S 35th HERITAGE LANDMARK. IF YOU LOOK AT THE SLIDE, YOU WILL SEE THAT THE COMMISSION RECEIVED FOUR APPLICATIONS THIS YEAR, TOTALING, AS I MENTIONED EARLIER, $957,331, WITH 8 100% THOUSAND DOLLARS WITH $800,000 AVAILABLE FOR GRANT AWARDS. THE NEXT THREE SLIDE ALSO SUMMARIZE THE PROJECTS REQUESTED BY THE FOUR APPLICANTS. SOME OF THE PROJECTS FOR THE HERITAGE FARMSTED MUSEUM INCLUDED MARKETING, SPECIAL EVENTS SUCH AS THE LIVESTOCK SHOW, THE SPRING EG EGGSTRAGGANZA, PATHWAY AND DRAINAGE IMPROVEMENTS. AND PARTIAL FUNDING FOR THE REMAINING -- FOR REMAINING RAM BARN AND OLNEY DAVIS GARAGE. PATH WAY AND DRAINAGE IMPROVEMENTS PROJECT ALSO. THE COMMISSION RECOMMENDED A SUM OF $33,000 FOR O&M, WHICH IS THE MAXIMUM ELIGIBLE THRESHOLD FOR THIS ORGANIZATION. THE TOTAL AMOUNT OF FUNDS THE COMMISSION RECOMMENDED FOR THE HERITAGE FARM SED MUSEUM WAS $505,000. THIS IS THE SUMMARY FOR TH PROJECTS OF THE PLANO CONSERVANCY MUSEUM MARKETING ARCHAEOLOGY RESEARCH. OUTREACH, AND UPDATES OF THE RAILROAD MUSEUM. THE CONSERVANCY WITHDREW THE OLD CEMETERY, THE FIVE REMAINING PROJECTS THE HERITAGE COMMISSION RECOMMENDED APPROVING COMPLETE FUNDING FOR THE SCROWT REACH IN EDUCATION PROGRAM. THE PLANO MUTUAL CEMETERY AND THE MUSEUM MARKETING AND ARCHAEOLOGY OUTREACH, AND PARTIAL FUNDING FOR THE INNER URBAN MUSEUM POST, ADA MUSEUM UPDATE PROJECT. THE COMMISSION RECOMMENDED THE SUM OF $145,000 FOR AN O&M WHICH IS MAXIMUM ELIGIBLE THRESHOLD FOR THIS ORGANIZATION. THE TOTAL AMOUNT OF THE FUNDS THE COMMISSION RECOMMENDED FOR THE PCHP WAS $222,248. THE TEXAS POOL FOUNDATION, HERE IS A SUMMARY OF THE PROJECTS FOR THE TEXAS POOL FOUNDATION. THE HERITAGE COMMISSION RECOMMENDED COMPLETE FUNDING FOR THE MASTER PRESERVATION PLAN AND MARKETING PROJECTS AND PARTIAL FUNDING FOR THE UMBRELLAS PROJECT. TOTAL AMOUNT THE COMMISSION RECOMMENDED TO THE TPF TEXAS POOL FOUNDATION WAS $50,081. NEXT WE HAVE THE NORTH TEXAS MASONIC HISTORIC MUSEUM AND LIBRARY, HE IS A SUMMARY OF THE PROJECTS THAT THE NORTH TEXAS MASONIC HISTORICAL MUSEUM AND LIBRARY HAD REQUESTED. THE HIS -- THE HERITAGE COMMISSION RECOMMENDS COMPLETE FUNDING FOR THE REFURBISH ISSUEMENT OF THE MSONIC SECTION AND PARTIAL FUNDING FOR THE PLANO MASONIC SQUARE MONOLITHIC MARKER. NOT ELIGIBLE TO RECEIVE O&M FUNDS UNDER THE PROGRAM REINSTRUCTIONS AND THEREFORE THE COMMISSION IS NOT RECOMMENDING ANY O&M FUNDING. TOTAL AMOUNT OF THE FUNDS COMMISSION RECOMMENDED FOR THE NORTH TEXAS MASONIC HISTORICAL MUSEUM AND LIBRARY WAS $22,671. JUST FOR YOUR INFORMATION, THE NORTH TEXAS HISTORICAL -- THE NORTH TEXAS MASONIC LIBRARY IS APPEALING SOME OF THE GRANT RECOMMENDATIONS AND RELEVANT DETAILS ARE CONTAINED IN THE PACKET YOU RECEIVED FOR THIS EVENING'S PROGRAM. SUMMARY, THE HERITAGE COMMISSION IS RECOMMENDING $800,000 FOR THE ALLOCATION OF THE HERITAGE PRESERVATION GRANT FUNDS FOR THE FOUR APPLICANTS AS SHOWN OS THE SLIDE. JUST AS A NOTE, MANY OF THE PEOPLE THAT APPLIED FOR FUNDS, COMING INTO THE WHOLE PROGRAM THEY REALIZE THEY DID NOT HAVE -- THERE WAS A LOT MORE -- THERE WASN'T ENOUGH MONEY TO GO AROUND, BUT EACH GROUP WAS WILLING TO SIT DOWN AND SAY, HEY, WE'RE WILLING TO BACK OFF AND TRY TO HELP ENOUGH MONEY GO AROUND FOR EVERYONE, AND SO THAT WAS ONE THING. I WANT TO COMMEND MANY OF THE FOLKS ON. IT'S REALLY A GREAT TIME FOR PEOPLE TO -- THEY SHARE IDEAS ALSO AND HOW YOU CAN APPLY FOR GRANTS SO ITS REALLY GOOD. IN SUMMARY, LIKE I SAID RECOMMENDED 800,000 FOR THE FOUREN APPLICANTS ON THE SLIDE. ANY QUESTIONS OR COMMENTS? >> Mayor Muns: ANY QUESTIONS? THANK YOU VERY MUCH. >> THANK YOU SO MUCH. APPRECIATE IT. THANK YOU SO MUCH. >> Mayor Muns: WANT TO HEAR FROM THE SPEAKER? >> City Clerk: ROBERT GREN PINNELL. >> MAYOR AND COUNCIL, MR. PINNELL HAD FORWARDED SOME INFORMATION BEFORE THIS MEETING. >> MR. MAYOR, MEMBERS OF THE PLANO CITY COUNCIL, PLANO CITY MANAGER, AND STAFF PERSONNEL, FOR THE RECORD, I AM ROBERT PINNELL, A 43 YEAR PLANO RESIDENT, SECRETARY DIRECTOR OF THE NORTH TEXAS MASONIC MUSEUM AND LIBRARY IN PLANO. RESPECTFULLY AND FORMALLY HAS APPEALED THE O&M PROPERTY ASSET PRESERVATION OF CLASSICAL LITERATURE AND HISTORIC DISPLAYS AND THE PLANO MASONIC COMMEMORATIVE MONOLITH MARKER AND MONUMENT AND REQUESTS THE CITY COUNCIL TO APPROVE AND GRANT THE MUSEUM AND LIBRARY THE $2,875 DENIED FOR THE PROPERTY SECURITY AND ASSET PRESERVATION ANDHE $9,329 TO COMPLETE AND PURCHASE THE ORIGINAL MONOLITH MARKER PROJECT ALSO DENIED BY THE HERITAGE COMMISSION. THE CITY COUNCIL HERITAGE COMMISSION LIAISON REPRESENTATIVES DEPUTY MAYOR TU, PRO TESTIMONY TU, AND COUNCILMEMBER RICCIARDELLI, AND CITY STAFF PERSONNEL HAVE BEEN PROVIDED IN WRITING ONGOING DEVELOPMENTS REGARDING THE MUSEUM APPEALS AFTER SEVERAL DISCUSSIONS WITH ALL OF THEM. A POSSIBLE ALTERNATIVE SOLUTION TO RECONCILE BOTH THE M AND L ISSUES RECENTLY BECAME APPARENT THIS PAST WEEK AND WAS ALSO PROVIDED IN WRITING FOR THE CITY COUNCIL DISTRIBUTION CONSIDERATION YESTERDAY AND SPECIFICALLY IT WAS FOR MS. HAWKINS OF THE CITY SPATIAL PROJECTS DEPARTMENT HAS BEEN TASKED TO REDESIGN AND DEVELOP A THEME FOR THE MASONIC SQUARE PROPERTY AT 1430K AVENUE TO IMPROVE ITS APPEARANCE, ATTRACT PUBLIC INTEREST AND PROMOTE THE PLANO DOWNTOWN HISTORIC DISTRICT. THE M AND L HAS RESEARCH AND ASSEMBLED AS HISTORIC OFFICIAL DATA SUPPLEMENTED WITH MASONIC ARCHIVES ON THAT SELECTED PIECE OF CITY PROPERTY AND OFFERED TO MAKE THE INFORMATION AVAILABLE WHERE IN 1860 PLANO MASONRY FIRST ASSEMBLED IN THE NOW PLANO DOWNTOWN HISTORIC DISTRICT. WE ARE THE ONLY ENTITY THAT WAS ON THAT CHART THAT'S IN THE DOWNTOWN DISTRICT. FOR YOUR INFORMATION, I HAVE A BEAUTIFUL 20 MINUTE PRESENTATION WITH SLIDES THAT I WANTED TO GIVE TO YOU, BUT MS. HENDERSON, AND MS. SNYDER OVERRULED ME, SO THEY SENT THEM OUT TO YOU. OKAY. GETTING BACK TO MS. HAWKINS, SHE SUGGESTED THAT THE CONTRACTOR MARKER MONUMENT PROJECT BE MODIFIED AND RUED TO THE TWO BRASS PLAQUES AT THEIR BID COST OF $12,654 UNTIL THE PROPERTY REDESIGN WAS COMPLETED LEAVING 5,346 REMAINING (INDISCERNIBLE) THIS MIGHT ALSO PROVIDE A VIABLE SOLUTION TO THE O&M PROPERTY SECURITY AND ASSET PRESERVATION OF CLASSICAL LITERATURE AND HISTORIC DISPLAYS PROJECT WITHOUT THE OUTLAY OF ADDITIONAL FUNDING BY PUTTING IT INTO A SPECIAL BLOCK GRANT INSTEAD OF UNDER O&M. ALL OF THE ABOVE H HAVE BEEN PROVIDED TO THE CITY COUNCIL FOR THIS DELIBERATION. MR. MAYOR, COUNCILMEMBERS, AND CITY OFFICIALS, WE THANK YOU FOR YOUR TIME AND CONSIDERATION, AND I THINK I'M YIELDING BACK FOURTEEN SECONDS, HAVE YOU ANY QUESTIONS? >> Mayor Muns: NO, WE GAVE YOU A LITTLE BIT MORE. [ LAUGHTER ] BUT I APPRECIATE IT. THANK YOU VERY MUCH. ANY QUESTIONS FOR THE SPEAKER? THANK YOU VERY MUCH, SIR. >> HELLO CITY COUNCIL, MR. MAYOR, CITY EXECUTIVES, MY NAME IS JOHNNY TSENG, I'M THE CHAIR OF THE COMMUNITY RELATIONS COMMISSION. I'M HERE ON BEHALF OF THE RELATIONS COMMISSION AND MY FELLOW MEMBERS TO PRESENT TO YOU OUR BUFFINGTON COMMUNITY SERVICES GRANT REPORT. I WANT TO RECOGNIZE MY FIVE OTHER PARTNERS ON THE COMMISSION. FIVE INDIVIDUALS WHO HAVE BEEN EXCELLENT PARTNERS WITH ME ON THE COMMUNITY RETIONS COMMISSION THIS YEAR, AND THOSE FIVE INDIVIDUALS ARE MUCH BETTER PUBLIC SPEAKERS THAN I AM, I DON'T HAVE THE ALLOTTED TIME TO SHARE WAS THE ACCOMPLISHMENTS OF THESE INDIVIDUALS, BUT I WILL TELL YOU THAT PRIOR TO THIS MEETING I TOLD THEM I WOULD BE VERY CONFIDENT IN THE REPORT THAT I'LL BE PRESENTING, VERY CONFIDENT IN THE PREPARATION WE'VE DONE, WE COMMITTED TO THIS PROCESS THIS YEAR, THE ONLY THING I WASN'T SO CONFIDENT ABOUT THAT I WOULD BE ABLE TO REPRESENT THEM IN MY PUBLIC --UBLIC SPEAKING TO REPRESENT THEM IN A SMOOTH POLISHED UNSTUTTERRING MANNER. SO IN RESPONSE TO THE INDIVIDUALS, SAID THAT THEY WOULD BE HERE TODAY, MAKE CONCERTED EFFORT AND I KNOW WE HAVE A LOT OF COMMISSIONERS THAT ARE IN THE AUDIENCE TODAY, SO THAT'S REFLECTIVE OF THE INDIVIDUALS THAT YOU HAVE APPOINTED AND THAT REPRESENTS THE LATTICE WORK OF OUR COMMUNITY. COMMUNITY RELATIONS COISSION, A BIG PART OF WHAT WE DO IS THAT YOU HAVE APPOINTED -- YOU HAVE ENTRUSTED THE COMMISSION WITH THE -- WITH OVERSEEING CONSOLIDATED GRANT APPLICATION PROCESS, AS ALL OF YOU ARE WELL AWARE, THE CITY PROVIDES GRANT FUNDING TO NONPROFIT ORGANIZATIONS TO PURSUE CERTAIN COMMUNITY NEEDS, AND WITH THE MIND SET THAT THERE ARE NONPROFIT ORGANIZATIONS OUT IN THE FIELD THAT ARE MORE EQUIPPED AND OPTIMIZED TO SERVICE THESE NEEDS, AS OPPOSED TO THE CITOF PNO ADDRESSING AND OPERATING THESE SERVICES DIRECTLY. CASE IN POINT, MEALS ON WHEELS NONPROFIT ORGANIZATION, THEY DELIVER WARM MEALS TO HOUSEHOLDS WHO ARE HAVING ILLNESS OR INABILITY TO ATTAIN THOSE MEALS, IN ADDITION TO DELIVERING THE MEALS, THEY ARE ALSO MAKING A WELLNESS CHECK, AND BECAUSE OF, YOU KNOW, GREAT MARKETING MEALS ON WHEELS, THE SERVICE IS INDICATIVE OF THEIR NAME AND THEIR MARKET PRESENCE IN TERMS OF THE VOLUNTEERS A INERMSE BENEFICIARIES ABLE TO GET PEOPLE TO VOLUNTARY BASICALLY FOR FREE, OR AS IN CONTRAST, THE CITY OF PLANO WERE TO PROVIDE MEALS DIRECTLY, THEY WOULD HAVE TO EXPEND FOR THE LABOR AND ALSO SEEK OUT THOSE BENEFICIARIES, SO THAT IS AN EXAMPLE WHEREBY PARTNERING WITH THESE ORGANIZATIONS AND FUNDING THEM, WE GET AMPLIFIED RESULTS. SO OUR REQUIREMENT FOR ALL ORGANIZATIONS THAT APPLY IS THAT THE GRANT FUNDING ARE UTILIZED IN SERVICES TO THE CITY OF PLANO RESIDENTS. THE WAY THAT THE COMMISSION MAKES A RECOMMENDATION IS OFF OF -- WE ALL REVIEW APPLICATIONS OF THE NONPROFIT ORGANIZATIONS AND WE UTILIZE A SCORING SYSTEM. WE SCORE THE APPLICANTS AND WE EVALUATE THEM OFF THE SCORE, AND OUR FUNDING RECOMMENDATIONS IS ON THE BASIS OF THEIR SCORES, SO WITH THE HIGHER SCORE ORGANIZATIONS, WITH THE HIGHER SCORES, GET AS HIGHER PERCENTAGE OF THEIR TOTAL REQUESTED FUNDING AND THE LOWER SCORES WOULD GET A LOWER PRCENTAGE. AND PRIMARILY, THE CITY -- THE CITY GRANTS ARE 3 BUCKETS OF FUNDING, OR THREE SOURCES OF FUNDS, THEY ARE COMMUNITY DEVELOPMENT BLOCK GRANT, CDBG, WHICH IS A HUD-FUNDED GRANT HOME, WHICH IS ANOTHER HUD-FUNDED GRANT, AND BUT TODAY, MY FOCUS WILL BE ON THE BUFFINGTON COMMUNITY SERVICES GRANT, THE BCSG, AS CDBG AND HOME FUND ARE RECOMMENDATIONS FROM THOSE TWO SOURCES OF FUNDING HAVE BEEN PROVIDED BY SHANETTE EADEN BACK IN LAST MONTH, JULY WITH CITY COUNCIL. SO THE BUFFINGTON COMMUNITY SERVICES GRANT IN CONTRAST TO THE CDBG GRANT AND ALSO IN CONTRAST TO THE HOME FUND IS THAT THERE'S A WIDER USE OF -- THERE'S A WIDER RANGE OF USES. THERE'S LESS -- OR PUT ANOTHER WAY, THERE'S LESS USAGE RESTRICTIONS AND SOME OF THE USE EXAMPLES WOULD BE PROVIDING FOR AFTER SCHOOL CHILD CARE SERVICES, FOR MEAL SERCES, SERVICES TO THE ELDERLY, COUNSELING SERVICES, CHILD ADVOCATES -- CHILD ADVOCACY SERVICES, BASICALLY A VERY, VERY WIDE RANGE WITH JUST NEEDS TO BE UTILIZED FOR THE CITY OF PLANO RESIDENTS. CURRENTLY, THE BCSG IS FUNDED THROUGH OUR CITY GENERAL FUNDS AT A PER CAPITA OF $2 -- AT A BUDGET AMOUNT OF $2 PER CAPITA, SO COMING OUTO APPROXIMATELY $585,800. SO BCSG ELIGIBILITY, SO BASICALLY AGAIN DIFFERENTIATING FROM THE HOME GRANT FUNDS AND THE CDBG FUNDS, WHICH ARE FUNDED THROUGH HUD, BCSG HAS A WIDER RANGE OF USAGE, SO WE HAVE IN TERMS OF THE APPLICATIONS FOR GRANT FUNDING BY THE CITY OF PLANO, TYPICALLY THEY'RE SEEKING BCSG FUNDING. IT'S THE ELIGIBILITY IS ON A SLIDE, BUT ESSTIALLY AGAIN IT'S -- IT NEEDS TO PROVIDE PUBLIC SERVICE ACTIVITIES DIRECTLY TO PLANO RESIDENTS. TO GIVE YOU A TIME ORIENTATION TO WHAT CRC DOES IN A CONTEXT OF THE CONSOLIDATED GRANT PROCESS, TYPICALLY IN AUGUST A SUBCOMMITTEE OF OUR MEMBERS WILL GET TOGETHER AND DELIBERATE ON WHAT HAS WORKED PREVIOUSLY, IN THE PREVIOUS GRANT PROCESS AND WHAT HASN'T WORKED AND COME UP WITH IDEAS TO PRESENT TO THE OVERALL COMMISSION AT LARGE. IN OUR NOVEMBER MEETING. AND IN OUR NOVEMBER MEETING, OUR COMMISSIONERS WILL DISCUSS THE GRANT APPLICATION, WHAT QUESTIONS TO EDIT, WHAT QUESTIONS TO TAKE OFF, AND ALSO KIND OF HOW ARE WE GOING TO COME ABOUT AND COMING TO A RECOMMENDATION. AND CURRENTLY AS A STANCE, WE HAVE A APPLICATION THAT IS 37 QUESTIONS, 31 TO 37 QUESTIONS, WE HAVE TWO SEPARATE APPLICATIONS, ONE FOR HOUSING, HOME IMPROVEMENT APPLICATION AND ONE FROM PUBLIC SERVICE APPLICATION, AND THOSE RANGE FROM 31 TO 37 QUESTIONS, AND WE ALSO HAVE AGREED THAT OUR RECOMMENDATION WOULD BE ANCHORED TO THE SCORING SYSTEM, WHICH WE FORMALLY CALLED THE SCORING RUBRIC WHICH WE NOW CALL THE EVALUATION GUIDELINE, AND ESSENTIALLY, WE HAVE TWO TOUCH POINTS WITH THE NONPROFIT ORGANIZATION, THE FIRST BEING THE WRITTEN APPLICATION THAT THEY SUBMIT TO THE CITY OF PLANO, AND TO THE COMMISSION, AND ALSO THERE IS A -- EACH ORGANIZATION HAS THE OPPORTUNITY TO PRESENT TO THE CRC SO THOSE ARE THE TWO TOUCH POINTS. AND THEN IN JUARY, ALL THE ORGANIZATIONS APPLICANTS ARE REQUIRED TO TAKE -- ATTEND A IN-PERSON TRAINING WITH OUR CITY STAFF WHICH THEY WILL BE INSTRUCTED ON, THE APPLICATION QUESTIONS HOW TO BEST FILL THEM OUT, WHAT WE'RE LOOKING FOR IN TERMS OF THE COMMISSIONERS, AND ALSO WHAT TO -- WHAT TYPES OF INFORMATION TO PRESENT IN THE PUBLIC HEARING. AND THEN THEY HAVE THE DEADLINE OF MARCH 1 TO SUBMIT THEIR GRANT APPLICATION THROUGH ONLINE THROUGH ZOOM GRANTS, AND THEN WE -- THE COMMISSIONERS BASICALLY HAVE THE ENTIRE MONTH OF MARCH TO REVIEW THE APPLICATION AND ALL THE DUE DILIGENCE DOCUMENTS AND SUBMIT THEIR SCORE. AND JUST AGAIN FOR A TIME REFERENCE, EACH APPLICATION PROBABLY TAKES BETWEEN 40 MINUTES TO AN HOUR TO REVIEW, AND FOR THE -- FOR THE CURRENT FISCAL YEAR 2023 GRANT YEAR, WE HAD 27 APPLICATIONS, SO 27 TIMES 1 IN APPROXIMATELY 30 DAYS OUR COMMISSIONERS HAVE COMMITTED TO THIS PROCESS. PARAAND THEN IN APRIL AND MAY IS WHEN WE SCHEDULE PUBLIC HEARING FOR ALL THE APPLICANTS FOR THIS PAST GRANT YEAR, WE HAD AGAIN 20 -- 27 APPLICATIONS, SO WE SCHEDULED FOUR PUBLIC HEARING DATES. EACH NIGHT WE'RE COMMITTING AROUND THREE TO FOUR HOURS IN ALLOWING THE ORGANIZATIONS TO COME UP IN FRONT OF THE COMMISSION AND -- AND IT'S NOT IN -- IT'S A W -- IT'S INRMATN GATHERING PROCESS. WE COMMUNICATE TO THE ORGANIZATION THAT THIS IS NOT MEANT TO BE THE COMMISSION JUDGING THEM AS AN ORGANIZATION. WE ACKNOWLEDGE THAT THEY'RE THE SUBJECT MATTER EXPERTS IN THE FIELD. THIS IS US LEARNING ABOUT THE ORGANIZATION, WHAT THEY DO IN OUR COMMUNITY, AND ALSO FOR US TO GATHER MORE INFORMATION ON WHAT TYPES OF GRANT NEEDS THERE ARE OUT IN THE COMMUNITY AND WHICH PERHAPS THE CITY OF PLANO CAN FILL THE GAPS IN WITH GRANT FUNDING. SO THAT HAPPENS IN APRIL AND MAY, AND THEN CRC RECONVENES IN JUNE TO DELIBERATE ON THE RECOMMENDATION THAT YOU HAVE RECEIVED AND WE MAKE A FINAL ASSESSMENT ON WHICH ORGANIZATION IS GETTING FUNDING AND WHAT DOLLAR AMOUNTS, AND WE'VE UTILIZED -- AGAIN, WE'VE UTILIZED THE SCORING SYSTEM WHICH WE WILL OVERVIEW FOR YOU IN THE COMING SLIDES, BUT BASICALLY, ANY ORGANIZATION THAT SCORES A MINIMUM THRESHOLD SCORE OF 70 POINTS GETS SOME FORM OF FUNDING. SO FOR THIS -- FOR THIS GRANT YEAR, FISCAL YEAR 2023, WE RECEIVED 27 APPLICATIONS WHICH REPRESENTS A TOTAL REQUESTED FUNDING OF APPROXIMATELY $2 MILLION. OUT OF THOSE, 24 ARE PUBLIC SERVICE APPLICATIONS, WHICH WOULD MAKE THEM ELIGIBLE FOR BCSG FUNDING, AND 24 APPLICATIONS WOULD BE REPRESENTATIVE OF APPROXIMATELY $1.6 MILLION IN TOTAL REQUESTED FUNDING, AND THIS SLIDE IS REALLY, YOU KNOW, JUST TO SHOW THERE'S A BITF A MISMATCH IN TERMS OF DEMAND AND FUNDING AND THE NEEDS OUT THERE IN THE COMMUNITY, AND OUR SUPPLY OF FUNDS. SO GOING INTO THIS, WE COMMUNICATE TO THE ORGANIZATIONS AND THEIR TRAINING AND GENERATE THAT LOOK, YOU KNOW, WE UNDERSTAND THERE'S A LOT OF NEEDS OUT THERE IN THE COMMUNITY, WE WANT TO BE TRANSPARENT AND THAT THE BUDGET FUNDING IS IN THAT $500,000 RANGE, AND SOMETHING THAT OUR COMMISSIONERS ARE VERY COGNIZANT OF IS THAT HOW WE CAN BRIDGE THE PROCESS. YOU KNOW, IN TERMS OF SHEAR MATHTHERS GOING TO BE A BUILT-IN DISAPPOINTMENT IN TRMS OF THE ULTIMATE DOLLAR RECOMMENDATION FUNDING, PUT WHAT WE CAN DO IS OUR TOUCH OF THE PROCESS, I CAN SAY IN MY OBSERVATION, FELLOW COMMISSIONERS, WE FULLY READ APPLICATIONS, WE ARE WELL AWARE OF THE ORGANIZATIONS WHEN THEY COME BEFORE US, AND THE QUESTIONS WE ASK SHOWS THAT WE, YOU KNOW, TRULY ACKNOWLEDGE THEIR EXPERTISE IN THE FIELD, AND THAT WE'RE LOOKING FOR -- WE'RE LOOKING FOR WAYS THAT WE CAN BEST ALLOCATE CITY -- EFFORTS IN THE COMMUNITY. SO I THINK THAT'S -- THAT KIND OF INTANGIBLE, IT'S SOMETHING THAT WE TRY TO UTILIZE AND BRIDGING THE TANGIBLE, YOU KNOW, BUILT-IN DISAPPOINTMENT THAT THERE'S $1.6 MILLION IN NEEDS, AND WE ONLY HAVE $585,000 TO CONTRIBUTE TO THEIR EFFORTS. SO AGAIN, WE UTILIZE A SCORING MECHANISM TO KIND OF TIE OUR RECOMMENDATION, AND ABOVE A 70 WILL GET FUNDEDES THROUGH THE CITY GRANT -- THROUGH THE BCSG FUNDING, AND WITH HIGHER SCORES HAVING A HIGHER PERCENTAGE OF THEIR TOTAL REQUESTED FUNDING BEING FUNDED. FOR THIS PAST GRANT YEAR, WE HAD 27 APPLICATIONS TOTALING 2 MILLION, OF THAT WE'RE MAKING RECOMMENDATIONS FOR CDBG AND HOME SOURCES OF FUNDING THAT HAS BEEN PRESENTED TO YOU BY SHANETTE IN JULY, AND TODAY WE ARE MAKING RECOMMENDATION FOR FOR 18 OF THOSE TO BE FUNDED THROUGH BCSG. THOSE HAVE BEEN PROVIDED TO YOU IN A MEMORANDUM. AS SOME OF YOU MAY RECALL, I WAS LAST IN FRONT OF YOU AND CITY COUNCIL BACK IN APRIL OF THIS YEAR, WE RECEIVED SOME -- WE REVIEWED THE PROCESS OF OUR -- THE CONSOLIDATED GRANT PROCESS, AND THESE THREE BULLET POINTS ARE ESSENTIALLY THE STREAMLINE TAKE AWAY OF THE AREAS OF FOCUS, AND -- AND I -- WHAT WE DID WAS THE COMMISSION THEN I TOOK THIS BACK TO THE COMMISSION, ALL COMMISSIONERS REVIEWED AND LISTENED TO THE CITY COUNCIL, THE FULL CITY COUNCIL RECORDING BACK IN APRIL 2023, AND WE -- I WANT TO PRESENT TO YOU HOW SOME OF THE CHANGES WE'VE MADE WITHIN THE PROCESS. KNOW, SOME OF THE FEEDBACKOU SPECIFICALLY I'LL POINT OUT TO COUNCILMEMBER RICCIARDELLI, WE'VE RECEIVED FEEDBACK THAT PERHAPS THE CALLING OUR EVALUATION GUIDELINES, A SCORING RUBRIC, CAN MAKE IT ALSO AND CATEGORIZING OUR POINT ALLOCATION AS WRITTEN APPLICATION AND PUBLIC HEARING CAN COME OFF AS IF THIS IS A SPEECH COMPETITION OR SOME SORT OF WRITTEN APPLICATION WRITTEN COMPETITION. AND ALTHOUGH, YOU KNOW, WHEN I TOOK THIS BACK, T FEEDBACK IS I CAN ASSURE YOU THAT WITHIN THE ORGANIZATIONS THEMSELVES WE HAVE NOT GOTTEN THAT FEEDBACK, BECAUSE, YOU KNOW, SOME OF THE PAR FOR COURSE FOR THE NONPROFIT PROCESS IS THAT THERE IS A WRITTEN APPLICATION. THERE IS A PUBLIC HEARING PRESENTATION COMPONENT. SO WITHIN THE ORGANIZATIONS THEMSELF, I DON'T THINK THAT WAS THE ISSUE. BUT THAT BEING SAID, WHEN THERE'S A PERCEPTION FROM STAKEHOLDERS IN THE COMMUNITY, WHETHER IT'S OUR CITY COUNCIL MEMBERS OR PERHAPS ORGANIZATION THAT IS NOT A PART OF THIS PROCESS, THEY MAY HAVE -- THEY MAY VE THE PERCEPTION THAT, YOU KNOW, THAT THIS IS A WRITTEN -- THAT THIS IS A WRITING COMPETITION OR THIS IS A SPEECH COMPETITION. IRONIC, BECAUSE I HAPPEN TO BE CHAIR AND SPEECH IS NOT GOING TO -- IS OBVIOUSLY NOT WHAT WE'RE LOOKING FOR. WITH THAT BEING SAID, WE RECOGNIZE THAT WE HAD A MESSAGING ISSUE. WE HAD THE WAY THAT WE'RE SIGNALING THIS PROCESS, SO WHAT WE DID IS WE -- INSTEAD OF CALLING THE EVALUATION PROCESS A SCORING RUBRIC WHICH THE COMMISSION HAS DONE SINCE 2018, WE CHANGED IT TO EVALUATION GUIDELINES. THAT BEING SAID, SUBSTANTIVELY, THE PROCESS IS STILL BASICALLY THE SAME. WE'RE STILL TWO TOUCH POINTS IN TERMS OF EVALUATING THESE APPLICANTS. WE ARE RECEIVING THE WRITTEN APPLICATION. WE ARE HAVING A PUBLIC HEARING WITH EACH OF THE APPLICANTS, AND PART OF THAT IS DUE TO SCALE. THIS YEAR THERE'S 27 ORGANIZATIONS AND WE HAVE NINE MEMBERS TO GET FAIR AND EQUAL ACCESS FOR OUR NINE MEMBERS MATCHING SCHEDULE WITH THE 27 ORGANIZES, WE HAD TO LIMIT TO THESE TOUCH POINTS. SO -- BUT WE HAVE GOTTEN RID THE CATEGORIES OF WRITTEN APPLICATION, CATEGORIES OF PUBLIC HEARING, ADMINISTRATIVE. WE JUST CALL IT -- YOU KNOW, WE STREAMLINED IT. WE'RE JUST -- WE'RE ESSENTIALLY EVALUATING THE APPLICANT SO WHY NOT BE MORE DIRECT IN WHAT WE'RE TRYING TO DO AS OPPOSED TO MISLEAD WITH SOME OF THE LABELINGS, AND SOMETHING ELSE IS THAT INSTEAD OF ANOTHER -- ANOTHER COMMENT WAS THAT WE DON'T WANT TO HAVE THE PERCEPTION THAT THERE'S ANY FAVORABLE BIAS, I BELIEVE AS COUNCILMEMBER PRINCE -- I'M SORRY, MAYOR PRO TEM PRINCE, THAT GAVE THE IMPRESSION THERE WAS FAVORABILITY GIVEN TO EXISTING ORGANIZATIONS THAT RECEIVE PRIOR FUNDING, BECAUSE WHAT IF OUR -- THE ADMINISTRATIVE CATEGORY AWARDED ADDITIONAL FIVE POINTS FOR PRIOR GRANT RECIPIENTS, SO WE'VE STRIPPED THAT OUT TO ADDRESS THAT FEEDBACK. WE'VE ALSO GOTTEN THE FEEDBACK FROM THE -- I BELIEVE IT WAS COUNCILMEMBER SMITH ABOUT JUST STREAMLINE THE APPLICATION PROCESS SO PERHAPS APPLICANTS WITH SMALLER DOLLAR AMOUNTS CAN HAVE A WAY TO -- HAVE A MORE SMOOTH PROCESS, AND I WILL ADDRESS THAT IN MY NEXT SLIDE IN JUST ONE BIT. SO RIGHT HERE, I APOLOGIZE FOR HOW THERE'S SO MUCH STACKED IN THERE, PUT I WANTED TO GIVE YOU A SIDE BY SIDE COMPARISON OF WHAT IT LOOKED LIKE, WHAT YOU GUYS SAW BACK IN APRIL, AND WHAT IT IS NOW GOING FORWARD. NEW MEANING FOR THE COMING YEAR, FISCAL YEAR 2024 GRANT YEAR, WHAT THE PROCESS IS GOING TO LOOK LIKE. IN A BIG CHANGE IS THAT IN THE WRITTEN -- WE OBVIOUSLY STRIPPED AWAY THE WRITTEN APPLICATION CATEGORY, AND THE PUBLIC HEARING CATEGORY, WE ARE JUST EVALUATING THE APPLICANT. AND A LOT OF THE QUESTIONS UNDER THE WRITTEN APPLICATION CATEGORY HAD TO DO WITH, HEY, HOW DID THEY ANSWER THE QUESTIONS? ARE THE SPEAKERS WITHIN THE TIMING OF THAT? AGAIN, WE WEREN'T GRADING ON -- THERE'S PRESENTATION SKILLS, IT WAS JUST HAVING A VERY TRANSPARENT MECHANICAL SPELLING OUT OF WHAT WE'RE LOOKING FOR AND ALSO TO INCENTIVIZE THEM TO ESSENTIALLY SHOW UP FOR THE PUBLIC PRESENTATION, BECAUSE ULTIMATELY, IN SOME WAYS THEY CAN HAVE A SUPERIOR WRITTEN APPLICATION THAT HAS PROVIDED ALL THE WRITTEN INFORMAION AND THEY DON'T NECESSARILY NEED TO SHOW UP, BECAUSE THERE'S NOT -- THERE'S NOT THAT SEPARATION SCORING. BUT NONETHELESS, WE HEARD YOUR FEEDBACK, AND WE WANTED TO STREAMLINE THE PROCESS, BECAUSE ULTIMATELY WE'RE EVALUATING THE APPLICANT -- APPLICANT. SO -- AND ANOTHER -- ANOTHER KEY CHANGE THAT YOU WILL NOTICE IS THAT WE HAVE REALLOCATED, REWEIGHTED SOME OF THE POINTS ALLOCATION, SO WE HEARD FEEDBACK FROM THE COUNCILMEMBERS THAT, YOU KNOW, WE'RE NOT PRIORITIZING ORGANIZATIONS -- ORGANIZATION THAT DOES A LOT FOR THE CITY OF PLANO, SO WHAT WE DID IS OF COURSE WE ADJUSTED IMPACT ON PLANO RESIDENTS TO 15 POINTS FROM 10, BUT I JUST WANT TO HIGHLIGHT, I THINK YOU GUYS UNDERSTAND THIS, ONE OF THE QUALIFIERS OR THE APPLICANT IS THAT THESE -- ANY DOLLAR FUNDS REWARDED TO ORGANIZATION HAS TO BE USED FOR CITY OF PLANO RESIDENTS, BUT THAT BEING SAID, THERE'S GOING TO BE ORGANIZATIONS THAT OUTSIDE OF OUR CITY FUNDING IS ALREADY PROVIDING A LOT OF SERVICES FOR THE CITY OF PLANO, SO WE DO WANT TO REWARD THEM FOR THOSE EFFORTS. PARAGRAPH ANOTHER KEY HIGHLIGHT THAT WOULD -- THAT ADDRESSES COUNCILMEMBER SMITH'S SUGGESTION THAT WE SOMEHOW STREAMLINE THE PROCESS A BIT SO THAT THE SMALLER GRANT DOLLAR APPLICANTS CAN HAVE A EASIER TIME WITH THE APPLICATION PROCESS, WE TRULY, WE DELIBERATED THAT, BUT IT'S KIND OF LIKE -- IT'S KIND OF LIKE THE SAYING WHEN WE ALL APPLIED FOR A LOAN, THE BRAIN DAMAGE IT TAKES TO APPLY FOR A $50,000 LOAN IS JUST THE SAME AS APPLYING FOR A MILLION DOLLARS LOAN, WHY? BECAUSE YOU'RE STILL NEEDING TO FILL OUT A LOAN APPLICATION. YOU STILL NEED TO PROVIDE FINANCIAL STATEMENTS, PERSONAL FINANCIAL STATEMENTS AND THE BASIC DUE DILIGENCE IS STILL GOING TO BE THERE, AND ULTIMATELY WE ARE -- OUR CITY GRANTS ARE NOT FUNDED BY INDIVIDUAL. IT'S NOT A PRIVATE FOUNDATION, JEFF BEZOS PRIVATE FOUNDATION, WE HAVE STAKEHOLDERS AND PEOPLE TO REPORT TO, SO WHEN WE DELIBERATED THAT TOPIC, OUR COMMISSIONERS JUST DIDN'T FEEL COMFORTABLE IN TERMS OF STRIPPING OUT THE BASIC REQUIREMENTS, BUT WHAT WE SUGGESTED, WHAT WE HAVE CONCLUDED IN DOING IS INPUTTING NUMBER 6 IN OUR NEW EVALUATION CRITERIA, WHICH IS EVALUATING WHETHER THE PROJECT PROPOSED -- PROSED DOLLAR FUNDING IS -- IS PROPORTIONATE TO THE AMOUNT OF SERVICE THEY PROVIDE. AN WHAT I MEAN BY ATTENTION TO THAT, IF THEY ARE -- IF AN ORGANIZATION IS COPPING TO US THAT REQUESTING $20,000, BUT THEY'RE GOING TO PROVIDE LET'S USE EXTREME NUMBER, THEY'RE PROVIDING 20,000 MEALS, WOW, WHAT A GREAT ROI, AND THAT ISING? ISSOMETHING THAT WE WOULD REALLY WEIGH, GIVE PRIORITY TO IN OUR SCORING, BUT SOMETHING I WANT TO POINT OUT, BEYOND WHAT WE HAVE IN WRITING, IN OUR PROCESS, IN THE POLICIES, IT'S THE -- IT'S THE INDIVIDUALS YOU HAVE APPOINTED, SO WHEN WE HAVE THIS KD OF SCRUTINY, THS KIND OF FEEDBACK, THIS IS HELPFUL FOR US AS INDIVIDUALS ON THE COMMISSION BECAUSE WE KNOW WHAT THE CITY COUNCIL IS LOOKING FOR. WE KNOW IT'S THE INDIVIDUALS THAT'S -- THAT'S, YOU KNOW, MAKING DETERMINATION ON THE SCORING. SO WE HEAR YOU. WE HEAR THAT WE WANT TO MAKE THIS PROCESS EASIER. AND WE ALSO WANT TO PRIORITIZE PERHAPS AN ORGANIZATION THAT IS DOING A LOT FOR VERY SMALL DOLLAR REQUEST. AND SO THIS IS -- SO TO GIVE YOU AN OVERVIEW OF THE COMING TASK, WE HAVE IN OUR NOVEMBER -- EARLY NOVEMBER SCHEDULE MEETING. THE COMMISSION IS GOING TO FURTHER -- FURTHER REFINE WHAT YOU SEE PRESENTED TO YOU IN A NEW APPLICATION -- IN A NEW EVALUATION GUIDELINE. WE'RE GOING TO GET MORE GRANULAR IN ADDITION TO WHATEVER FEEDBACK I RECEIVED FROM THE COUNCILMEMBERS TONIGHT, AND ALSO SOMETHING ELSE IS THE HOUSING TASK CREDIT PROCESS. WE -- WE AWAIT YOUR FEEDBACK AND DETERMINATION. WE UNDERSTAND THAT THE CITY OF PLANO HAS ENGAGED WITH THE CONSULTANT TO -- REGARDING THE PROCESS AND WE ARE READY WITH ANY DIRECTION IN THAT -- IN THAT REGARDS. AND OUTSIDE OF THAT, THANK YOU FOR YOUR TIME. >> Mayor Muns: THANK YOU, JOHNNY, APPRECIATE IT. ANY QUESTIONS FOR JOHNNY? COUNCILMEMBER RICCIARDELLI. >> Ricciardelli: THANK YOU, MAYOR, NOT SO MUCH A QUESTION, I JUST WANTED TO THANK YOU, CHAIRMAN TSENG, FOR BEING OPEN TO THE FEEDBACK THAT SEVERAL OF US REQUESTED AT THE MEETING BACK IN APRIL. THAT'S GREAT WORK, SO THANK YOU. >> Mayor Muns: SHELBY. >> Williams: TACK ON TO THAT, I KNOW THAT FOR A FEW YEARS NOW IT'S HAD TO FEEL YOU'RE MAKING CHANGES IN A POLICY EARTHQUAKE, BECAUSE WE KEEP TACKING ON NEW RQUIREMENTS AND CHANGING THINGS, SO I APPRECIATE THE ADAPTABILITY, AND I'LL ECHO ALSO WHAT I SAID IN CHAPE, I THINK YOU'RE DOING A FIND JOB. >> THANK YOU. YOU KNOW, THAT REMINDS ME, I DID-- I DID HEAR THE FEESH IN THE PRIOR COUNCIL MEETING THAT COUNCIL WILL LIKE MORE TIME TO REVIEW OUR RECOMMENDATION, RECOMMENDATIONS IN TERMS OF THE NOT JUST THE -- NOT JUST THE BCSG RECOMMENDATIONS BUT ALSO THE CDBG RECOMMENDATION AND THE HOME FUNDS, THAT'S HEARD, WHAT WE CAN DO IN THE FOLLOWING GRANT CYCLE IS PUSH UP AND TRUNCATE OUR SCHEDULE WITH THE PUBLIC HEARING SO THEN WE WOULD ARRIVE AT OUR RECOMMENDATION AT A MUCH EARLIER DATE. JUNE, IF YOU GUYS WOULD LIKE, SO THAT IS TOTALLY AMENABLE, AND THAT'S WHY I FEEL LIKE HAVING THIS FEEDBACK AS MUCH AS THIS CAN BE SCRUTINY -- A PROCESS OF SCRUTINY, BUT WE APPRECIATE THE FEEDBACK YOU'RE GIVING US, BECAUSE I CAN -- I CAN SAY IN THE PAST -- PAST YEARS OR SO, WE HAVEN'T ITE TTEN THAT FEEDBACK, WITH THIS THERE CAN BE A FLY WHEEL EFFECT WHERE WE CAN -- WE CAN, YOU KNOW, MAKE THE PROCESS BETTER, NOT PERFECT, BUT BETTER. >> Williams: GREAT EXAMPLE OF YOUR EFFORTS TO WORK AND ADAPT. THANK YOU. >> Mayor Muns: THANK YOU, JOHNNY. APPRECIATE IT. >> THANK YOU. >> Mayor Muns: >> City Clerk: CULTURAL ARTS? . >> GOOD EVENING, COUNCIL AND OTHER MEMBERS OF THIS WELL OILED MACHINE. I AM FABIAN GORDON, I'M THE CHAIR OF THE CULTURAL ARTS COMMISSION. THIS IS MY FOURTH AND FINAL YEAR WITH THE COMMISSION, SO I'M GOING TO BE LOOKING FOR SOMETHING ELSE TO BOTHER YOU GUYS WITH. SO LET'S GET STARTED. GIVE YOU AN OVERVIEW OF THE COMMISSION AS IT STANDS RIGHT NOW, ME AS THE CHAIR, MISTY HOYT IS THE VICE CHAIR, SHE TOO WILL BE AGING OUT THIS YEAR, SO THAT OPENS TWO POSITIONS FOR NEXT YEAR'S APPOINTMENTS. FOLLOWED BY EMILY MOORE, LISA CLEIN, DIANE GOEBEL. PETER WIN, AND RITA COS DPROF. COSGROVE. SOME OF THE THINGS WE ACCOMPLISHED THIS PAST YEAR, WE HAD -- ALWAYS HAD ONE SUBCOMMITTEE THAT WAS TRYING TO WORK ON ISSUES RELATED TO GRANT FUNDING AMOUNTS, FAIRNESS, CAPS, THOSE KINDS OF THINGS, AND THOSE EFFORTS OVER THE YEARS HAVE STAGNATED OR STALLED OUT, SO THE SUBCOMMITTEE, WHICH I'M REALLY PROUD WHAT THEY DID THIS YEAR, THEY DECIDED TO APPROACH THIS BY LOOKING AT ELIGIBILITY FIRST, BECAUSE ELIGIBILITY DETERMINES WHAT THE MAXIMUM AMOUNT ANY PARTICULAR ORGANIZATION CAN GET IS. AND THE WAY ELIGIBILITY HAS BEEN DONE IN THE PAST, IT WAS TAKING VERY TOP LINE NUMBER, NOT REALLY APPLYING CRITERIA THAT DETERMINES HOW MUCH OF THIS MONEY IS ACTUALLY BEING USED FOR ARTS OR FOR THINGS THAT ACCOMPLISH REVENUE SPECIFICALLY TO HOT TAX, WHICH IS THE FUND THAT THIS MONEY COMES FROM. SO IN ORDER TO KIND OF REGENERATE THOSE FUNDS, IT WOULD BE NICE TO KIND OF QUALIFY THAT A LITTLE BIT. THAT COMMITTEE HAS MADE A LOT OF PROGRESS THIS YEAR. WE STARTED A SECOND SUBCOMMITTEE TO REVIEW THE QUESTIONS, THE 20 QUESTIONS THAT GO OUT TO ALL OF THE APPLICANTS EXCEPT FOR OUR SMALL ARTS APPLICANTS WHICH I'LL COVER IN A MINUTE. THOSE QUESTIONS OVER THE YEARS HAVE BECOME A LITTLE STALE. AND IN MANY CASES, THEY'RE A LITTLE REDUNDANT, SOME OF THE THINGS THEY ASK ARE KIND OF COPY PASTE ANSWERS, DON'T REALLY MAKE A WHOLE LOT OF SENSE, THIS NEW SUBCOMMITTEE, WE FMED TWO MONTHS AGO. THEY HIT THE GROUND RUNNING. THEY'RE LOOKING AT ALL THE QUESTION, TRYING TO FIGURE OUT HOW WE QUALIFY AND GRADE THE -- THE APPLICANTS AND WITH RESPECT TO SPECIFICALLY BRINGING HEADS IN BEDS FOR THE HOT TAX, INCREASING THE VARIATION -- THE VARIETY OF ARTS AND CULTURAL ACTIVITIES, BECAUSE THIS IS A PRETTY DIVERSE GROUP HERE, AND ALSO EXPOSE THE CITY OF PLANO TO GET OTHER PEOPLE TO COME IN HERE AND SEE THOSE THINGS, EVEN IF WE CAN'T DIRECTLY AFFECT HOT TAX, WE CAN TOUCH OTHER AREAS OF TOURISM AND THINGS LIKE THAT, SO'M PREY PROUD OF THAT. WE ALSO CHANGED THIS YEAR FOR WHATEVER REASON, AND NO ONE SEEMS TO KNOW THE HISTORY OF THAT. ONE OF THE -- ONE OF THE PROCESSES THAT THE APPLICANTS PARTICIPATE THIS IS OBVIOUSLY THEY DO THE WRITTEN APPLICATION, BUT THEY HAVE A DAY THAT THEY COME IN AND DO ORAL PRESENTATIONS AND TYPICALLY THOSE ORAL PRESENTATIONS HAVE BEEN IN DIRECT SUPPORT OF THE WRITTEN APPLICATION WHICH TO ME AT LEAST, AND THE OTHER COMMISSIONERS, SEEMED A LITTLE REDUNDANT. IT'S LIKE I ALREADY READ YOUR ANSWERS, PRESENTING THOSE ANSWERS AGAIN MAKES LITTLE SENSE, SO WE OPENED UP THE -- THE ORAL PRESENTATION DAY TO WHERE THEY COULD PRESENT WHATEVER THEY WANTED ABOUT THEMSELVES, IN EFFECT, WE CAN LEARN MORE ABOUT WHAT THOSE ARTS GROUPS DO, BY THEM ACTUALLY EXPOSING US TO WHAT THEY DO, NOT ALL OF US, EVEN THOUGH WE'RE ENTITLED TO GO SEE EVERYTHING THEY DO, WE DON'T HAVE THAT KIND OF TIME, IT'S HUNDREDS OF EVENTS A YEAR, SO BY OPENING THE ORAL PRESENTATION TO WHATEVER FORMAT THEY WANTED, IT ALLOWED US TO SEE THINGS THAT WE HADN'T SEEN IN THEIR PERFORMANCES, THE TYPES OF ART THEY DO, THE INTERPRETATIONS OF THE ART THEY DO, WHETHER IT'S A PERFORMANCE ART, MUSICAL ART, DRAWING ART, YOU KNOW, ANY KIND OF ART, THERE'S A LOT OF DIFFERENT THINGS GOING ON HERE, THAT WAS VERY WELL RECEIVED BY NOT ONLY THE COMMISSION, BUT ALSO THE ART GRANT APPLICANTS AS WELL. SO WE'RE PRETTY PROUD OF THAT. THINGS WE LIKE TO SEE FOR NEXT YEAR, OBVIOUSLY CONTINUING TO REFINE THE ELIGIBILITY REQUIREMENTS, AND CHANGES TO PROMOTE MORE EQUITY IN THE GRANT PROCESS AND ALSO HOT TAX COMPLIANCE, CONTINUE TO PROMOTE CULTURAL AND ARTISTIC EXPERIENCES THAT ARE CREATED WITHIN PLANO, BY PLANO, AND FOR PLANO, AND IN SOME CASES WE HAVE SOME WAIVER AND EXCEPTIONS TO THAT, BUT THAT IS NOT IMPORTANT RIGHT NOW, AND ALSO ENCOURAGE NEW -- I'M A BIG FAN OF INCUBATORS AND NEW ARTISTIC GROUPS GETTING THEIR START, FINDING A WITH WAY TO KIND OF GET FUNDED THAT FIRST TIME AROUND, SO THAT'S -- THAT'S A COOL THING, WE HAVE A PROVISION FOR THAT. IT'S NOT HUGE. BUT IT IS THERE AND I WOULD LIKE TO SEE MORE PEOPLE PROMOTE THAT OR GET THE WORD OUT THAT SAYS, HEY, YOU KNOW, COME TO PLANO, BASE OPERATIONS OUT OF HERE, AND WE'LL HELP YOU KIND OF GET OFF THE GROUND AND BUILD SOMETHING, WE HAVE HISTORY THAT SHOWS THAT THAT ACTUAL WORKS. SO THE GRANT OVERVIEW PROCESS, I'LL GO THROUGH THAT REAL QUICK, THERE ARE BASICALLY THREE TYPES OF GRANTS. THIS GETS A LITTLE COMPLICATED. THE SMALL ARTS GRANTS ARE LIMITED TO $2,500 OR LESS. IT DOES NOT REQUIRE A NOT FOR PROFIT STATUS AND YOU CANNOT GET MORE -- WE CANNOT DO MORE THAN FOUR OF THOSE A YEAR. THAT PARTICULAR GRANT IS NOT IMPLICATE WHATEVER THE CAP THAT YOU FOLKS SET FOR THE YEAR, SO THAT FUNDING IS OUTSIDE OF THAT. THE MAJOR ARTS GRANT, WHICH THK INERMSF THE NUMBER OF ORGANIZATIONS THAT COME TO US, OUR ORGANIZATIONS, THEY'RE FUNDING ELIGIBILITY CANNOT EXCEED 25% OF THE PREVIOUS YEAR'S EXPENSES, THEY DO REQUIRE NONPROFIT STATUS AND THEIR RECOMMENDED AWARD IS PART OF THE MILLION DOLLARS CAP OF FUNDS THAT WE RECEIVE. WE ALSO GET QUARTERLY REPORTS FROM THEM, THEY HAVE ATTENDANCE REQUIREMENTS, OUR MONTHLY MEETINGS AND THEY'RE ALSO REQUIRED TO PROVIDE ACCESS TO THEIR EVENTS OR REHEARSALS TO THE DIFFERENT COMMISSIONERS IN THE GROUP. THE EVENTS GNTS, WE HAVE FO OF THOSE, THOSE ARE ORGANIZATIONS ARE ALSO LIMITED TO 25%, THEY ALSO REQUIRE NONPROFIT STATUS. THEY MAY REQUEST CASH OR IN KIND CITY SERVICE, IF YOU SEE WHO THOSE ARE LATER, YOU WILL UNDERSTAND THAT A LITTLE BIT, AND OF COURSE THEY REPORT THEIR ACTIVITIES ATTENDANCE NUMBERS, ALLOCATION OF CITY FUNDS, YOU KNOW, IN THE LAST 60 DAYS, ALL OF THIS IS MONITORED THROUGHOUT THE YEAR. ONCE THEY RECEIVE THEIR GRANT, THEIR CONTRACT SAYS THIS IS HOW ARE YOU GOING TO RECEIVE YOUR FUNDS, WHEN ARE YOU GOING TO RECEIVE YOUR FUNDS AND YOU HAVE TO REPORT COMPLIANCE TO THAT. SO IT' TWO PART PROCESS, ONE PART OF THE WRITTEN APPLICATION I MENTIONED EARLIER, WINDOW FOR THAT OPENS IN FEBRUARY AND CLOSES IN APRIL. IN THE SMALL ARTS GRANTS, THERE'S 8 QUESTIONS WORTH 0 TO 5 POINTS, ONE OF THE THINGS I WOULD LIKE TO SEE CHANGED TO FIVE, ONE TO FIVE DOESN'T MAKE SENSE. IN THE MAJOR ARTS AND EVENTS GRANTS, THAT IS A 20 QUESTION, A SYSTEM THAT WE HAVE CALLED ZOOM GRANTS THAT WE OPERATE OUT OF. ALL THEIR ANSWERS GO INTO THAT SYSTEM, WE REVIEW THEM. THEY MUST SUBMIT TIR 990 INFORMATION, THEIR TAX EXEMPT INFORMATION, AND ALL OF THAT IS VERIFIED AND ELIGIBILITY IS ACCOUNTED FOR BY THE BUDGET OFFICE. AND THEN PART 2, WE TALKED ABOUT, THERE ARE APPLICATION, WE HAVE TEN MINUTES BASICALLY TO TELL US WHAT THEY DO, HOW THEY DO IT, AND WHY THEY DO IT. AND WE GET TEN MINUTES TO ASK THEM QUESTIONS AND ANSWERS, AND SOME OF IT WILL BE RELATED TO THE ANSWERS THEY PROVIDED, AND SOME OF IT WILL BE TO THE PRESENTATION THAT WE -- THE FORMAT IS DETERMINED BY THEM. TO FUNDING RECOMMENDATIONS. THERE WERE FOUR EVENTS, APPLICATIONS RECEIVED THIS YEAR, AND 17 SMALL AND MAJOR ARTS, ONE OF THOSE APPLICATIONS WAS A SMALL ARTS APPLICATION. ONE OF THE APPLICANTS DID NOT PASS MUSTER. THEY HAVE TO SCORE 70% OR HIGHER ON OUR WRITTEN QUESTIONNAIRE, AND THEN THAT'S WHAT DETERMINES ALSO WHAT THEY GET. SO THERE WAS ONE DENIAL THIS YEAR. IT'S NOT THE FIRST YEAR IT'S HAPPENED, BUT I BELIEVE THERE'S AN AGENDA ITEM TO DEAL WITH THAT ATOME POINT. HISTORICALLY, YOU KNOW, THE AMOUNT OF MONEY THAT HAS BEEN GIVEN TO US GOING BACK FIVE YEARS HAS BEEN PRETTY FLAT WITH THE EXCEPTION OF COURSE OF 2020. BUT EVERYTHING IS PRETTY COPACETIC. WHAT WAS REQUESTED BETWEEN THE SMALL AND MAJOR ARTS, WHAT WAS AWARDED BY SCORING THEM WAS A MILLION 710560. IF YOU WOULD HAVE GOTTEN 100 ON THAT QUESTIONNAIRE, THE WAY THE SCORES PANNED OUT, IT SCALES THEM DOWN TO A MILLION 7, THAT'S A MILLION DOLLARS CAP, OBVIOUSLY THE CAP BELOW THE AWARDED BY SCORE AMOUNT, SO EVERYTHING GETS CAPPED AT A MILLION DOLLARS, AND EVERYBODY'S SCORES GET SCALED DOWNWARD TO FIT THAT CAP. IN THE EVENTS CATEGORY WHAT WAS REQUESTED WAS $396,918, WHAT WAS AWARDED AT 3,698,987. THIS IS WHAT THEY WERE ELIGIBLE FOR. THIS IS WHAT THEY REQUESTED. THOSE NUMBERS DON'T ALWAYS MATCH. YOU SEE THEIR INDIVIDUAL SCORES AND WHAT THEY WERE ELIGIBLE, AWARDED BASED ON SCORE ONLY, AND THEN THE FINAL COLUMN IS THE RECOMMENDATION SCALED TO FIT THE MILLION DOLLARS CAP. AND YOU'LL SEE ONE -- THERE'S ONE SMALL ARTS GRANT IN THERE, AND THERE WAS ONE ORGANIZATION THAT DID NOT QUALIFY BECAUSE THEY GOT LESS THAN A 70% ON THEIR QUESTIONNAIRE. FORWARD. IN THE EVENTS CATEGORY, WE HAD FOUR DIFFERENT EVENTS THAT SOLICITED FUNDING. THIS IS HOW THEIR NUMBERS PAYED OUT, HOW THEIR ELIGIBILITY NUMBERS VARY WILDLY, I'M SURE YOU CAN UNDERSTAND WHY WHEN YOU SEE WHO THEY ARE, WHAT THEY REQUESTED AND THEIR SCORES. THEIR SCORES ARE GENERALLY PRETTY HIGH, EVENTS SCORE PRETTY HIGH TYPICALLY, AND FUNDING RECOMMENDATION ON THE RIGHT IS THE RESULT OF THAT SCORE. SCORING. THAT'S ALL I HAVE. ANY QUESTIONS? >> Mayor Muns: THANK YOU, FABIAN. Y QUESTIONS FOR FABIAN? >> I DO. SO I WANTED YOU TO GO BACK TO THAT SLIDE WITH REGARD TO THAT ONE -- ONE GRANT THAT WAS DENIED. YEAH, THE PLANO ART ASSOCIATION. >> UH-HUH. >> Tu: WE'RE DEALING WITH -- SO BASICALLY YOU HAVE TO BE 70 TO PASS, RIGHT? >> YOU HAVE TO HAVE A 70 TO PASS, THAT'S CORRECT. >> Tu: AND SO WE'RE TALKING LESS THAN -- LESS THAN EVEN 1%. >> AGREED. >> Tu: IS THERE LIKE AN APPEAL PROCESS WHERE PEOPLE CAN ACTUALLY SAY, LOOK, CAN YOU RELOOK AT IT OR LIKE IN COURT, YOU HAVE A MOTION TO RECONSIDER -- >> WE DISCUSSED THAT. WE DISCUSSED THAT. AND WE KIND OF TOOK A DIFFERENT ROUTE TO SOLVE THIS ISSUE. AND I BELIEVE, CORRECT ME IF I'M WRONG, IT'S ON THE AGENDA FOR LATER. >> IT'S THE NEXT ITEM. >> GOOD. I CAN STAY HERE. I DON'T KNOW. SO HERE IS THE SITUATION. THERE'S A SYSTEM THAT DOES SCORING, AND THE SCORING -- THERE'S SEVEN COMMISSIONERS THAT PUT IN THEIR SCORES AND THE SYSTEM GIVES YOU WHAT THAT SCORE IS, THE DECISION COMES OUT TO A TWO DIGIT PRECISION. IT'S ALWAYS BEEN THAT WAY. WE'VE NEVER ROUNDED ANYTHING. IT'S JUST NEVER HAPPENED THAT WAY. IN ADDITION, EVERYBODY REVIEWED THESE SCORES AND THESE -- THESE NUMBERS WERE ACCEPTED VOTED UNANIMOUSLY. >> Tu: YEAH, I'M NOT -- I'M NOT TALKING ABOUT THE SCORING PROCESS, ALL I'M ASKING SPECIFICALLY, WHEN IT COMES TO THAT CLOSE TO A DECISION OF GRANT OR NOT GRANT, IS THERE A PROCESS FOR SOMEBODY WHO IS SEEKING A GRANT TO CE BACK AND ASK FOR A RECONSIDERATION OR ASK FOR SOME TYPE OF WAY TO, YOU KNOW, MAKE THEMSELF, YOU KNOW, THEIR WRITTEN PRODUCT MORE PRESENTABLE? THAT'S ALL I'M ASKING -- >> SO IN THE CURRENT GRANT MANUAL, I DON'T BELIEVE THERE IS, BUT ALSO I KIND OF NEED YOU TO UNDERSTAND THAT THEIR GRADE IS BASED NOT ONLY ON THE ANSWERS TO THEIR QUESTIONS, IT'S THERE -- HOW MANY OF THE MEETINGS HAVE THEY ATTENDED, HAVE THEY MET THOSE REQUIREMENTS? HAVE THEY PROVIDED ACCESS TO THEIR PERFORMANCES OR WHATEVER IT IS THEY DO. IN THIS PARTICULAR CASE, THIS ORGANIZATION WAS NOT PRESENTHENHESE NUMBERS WERE REVEALD. SO -- SO I'M NOT SURE YOU WOULD HAVE GOTTEN VERY FAR. I KNOW I'VE SPOKEN TO A COUPLE OF DIFFERENT COMMISSIONERS WHO EFFECTIVELY DROVE THE SCORE DOWN, AND THEY WOULD NOT BUDGE ON THAT, SO I'M NOT SURE AN APPEAL PROCESS IF ONE EXISTED WOULD HAVE HELPED, BUT NO, THE ANSWER -- DIRECT ANSWER TO YOUR QUESTION IS >> Tu: WHAT ABOUT DISCUSSING THE REASON FOR THE FINAL SCORE THAT CAUSED THEM TO BE DENIED? I MEAN, DO YOU SIT DOWN WITH THEM AND TELL THEM, LOOK, YOU KNOW, IF YOU'VE DONE THIS BETTER OR THAT BETTER, WE WOULD HAVE INCREASED YOUR SCORE? I MEAN, IS THERE A COMMUNICATION, A DIALOGUE? I MEAN, OBVIOUSLY, THESE ARE ALL PLANO -- >> RIGHT. >> Tu: -- ORGANIZATIONS. >> THIS PARTICULAR ORGANIZATION HAS BEEN IN THIS GRANT GROUP FOR A LONG TIME TOO. SO IT WAS PRETTY TOUGH TO SEE THAT. >> Tu: YEAH. >> THERE IS CONSTANT COMMUNICATION BETWEEN THE GRANT RECIPIENTS AND OUR BUDGET OFFICE LIAISON. I KNOW THAT COMMUNICATIONS EXISTS OFTEN. I'M SURE THEY WERE COMMUNICATED WITH AND TOLD, HEY, THIS IS THE SITUATION. THE MANAGEMENT OR THE SENIOR MANAGEMENT THE OPERATIONAL MANAGEMENT OF THIS ORGANIZATION HAS SINCE CHANGED. >> Tu: I WOULD LIKE TO SEE -- I MEAN, I'D LIKE TO MAKE THAT SUGGESTION, THAT WHENEVER THERE IS SOMETHING THAT CLOSE -- I MEAN, WE'RE IF WE'RE TALKING 50%, THAT'S A DIFFERENT STORY. WHEN WE'RE TALKING LESS THAN 1%, .1%, THAT MAYBE, YOU KNOW, A SIT-DOWN CONVERSATION -- I MEAN, I UNDERSTAND YOU RESOLVED IT MAYBE LATER ON. BUT IN THE FORMAL PROCESS, THAT NEEDS TO BE INCORPORATED WHERE YOU ACTUALLY HAVE A SITDOWN WITH THE GRANT REQUESTOR. AND ALSO ALLOWING THEM TO, YOU KNOW, AT LEAST HAVE AN OPPORTUNITY. IF THEY DON'T WANT THE OPPORTUNITY TO COME BACK, THAT'S THEIR PROBLEM. ALLOWING THEM AN OPPORTUNITY TO COME BACK AND -- >> I'M SURE THEY WANTED TO BE BACK OR THEY WOULDN'T HAVE APPLIED, FOR SURE. THE DIFFICULTY, I THINK -- AND I AGREE WITH YOU, I THINK THERE NEEDS TO BE SOME KIND OF PROCESS PUT IN THE GRANT MANUAL FOR THAT. I THINK THE PART HERE IS THIS IS BASED ON PAST PERFORMANCE, SO HOW DO YOU FIX THAT? PART OF IT WOULD BE MEETING REGULARLY WITH THE LIAISON, WITH THE COMMISSION, AND GETTING FEEDBACK FROM THE COMMISSION AND LIAISON. YOU KNOW, HEY, WE SEE SOME TROUBLE BREWING. YOU CAN AVOID THAT COME GRANT TIME IF YOU KIND OF STRAIGHTEN THESE THINGS OUT NOW. THAT PROBABLY -- WE DIDN'T HAVE THE OPPORTUNITY TO DO THAT. THERE IS A QUARTERLY REVIEW, QUARTERLY REPORT THEY HAVE TO SUBMIT, AND THEY ARE REQUIRED TO ATTEND AT LEAST ONE MEETING, ONE GENERAL MEETING PER QUARTER. >> Mayor Muns: OKAY. COUNCILMEMBER HOLMER, DID YOU HAVE SOMETHING? COMMISSION FOR YOUR WORK.TO SAY THE ARTS IN PLANO ARE SO IMPORTANT, AND I'M REALLY PROUD OF OUR CITY FOR MAKING THE ARTS A PRIORITY. DEPUTY MAYOR PRO TEM TU AND I WERE AT A CONFERENCE LAST WEEK AND WAS APPROACHED BY ANOTHER COUNCILWOMAN IN TEXAS WHO WAS FRUSTRATED WITH HOW HER CITY WAS NOT SEEING THE IMPORTANCE OF THE ARTS, SO I WAS PROUD TO REPRESENT PLANO. AND I KNOW WE'VE GOT A LOT OF PRIORITIES TO WORK ON OUR COMPREHENSIVE PLAN OF THE ARTS, AN I HAD THE OPPORTUNITY TO ATTEND PART OF YOUR ORAL PRESENTATIONS. AND I WISH I COULD HAVE BEEN THERE ALL DAY, BECAUSE IT REALLY WAS ENLIGHTENING TO SEE THE DIFFERENT ORGANIZATIONS REPRESENT THERE. AND I REALLY ENJOYED WHAT YOU DID WITH HAVING THEM DO THINGS A LITTLE DIFFERENTLY. IT WAS EXCITING TO BE THERE. SO JUST WANTED TO TELL YOU I APPRECIATE YOUR LEADERSHIP. >> THANK YOU, APPRECIATE THAT. >> Holmer: APPRECIATE THE COMMISSION'S HARD WORK AND LOOKING FORWARD TO THE ARTS IN PLANO. >> I APPRECIATE THAT. IT'S A TEAM EFFORT AND EVERYONE IS THRILLED ABOUT WHAT THEY DO. THEY'RE OBVIOUSLY DELIGHTED TO GET EXPOSED TO THESE THINGS AND PARTICIPATE IN THESE DIFFERENT THINGS AND HAVE THE SAY IN WHERE IT GOES FROM THERE. THANK YOU SO MUCH. ANYONE ELSE? >> YEAH, REAL QUICK. WHAT'S THE DOLLAR AMOUNT THAT THEY WOULD HAVE BEEN -- IF THEY WOULD HAVE SCORED AT 70, WHAT'S THE ACTUAL DOLLAR AMOUNT THAT WAS MISSED OUT? I KNOW IT'S NOT THIS TOTAL NUMBER >> IT'S NOT IN THERE. I DON'T KNOW THE EXACT NUMBER. IF THEY SCORED 70, I BELIEVE (INDISCERNIBLE). >> THAT'S WHAT I THOUGHT. >> I COULD BE STRONG. >> IT SAID 3,509. >> I WAS CLOSE. >> THANK YOU. >> Mayor Muns: APPRECIATE IT. >> MAYOR AND COUNCIL, THE NEXT ITEM IS FUNDING OF AGENCIES OUTSIDE OF PARAMETERS. SO YOU HAVE TWO ITEMS AND FORMAL APPEAL FROM THE MASONIC LODGE. AND THE WAY THAT I READ IT, MR. PINNELL, I'LL ASK THAT YOU CONFIRM THIS WITH A HEAD NOD. IT SOUNDS LIKE YOU HAVE AN ALTERNATE TO THE -- EXCUSE MY TERM -- THE MONUMENT OUT THERE GOING TO PLAQUES. AND IT SOUNDS LIKE THERE'S SOME FUNDS LEFT OVER IF YOU MOVE TO THE PLAQUES THAT YOU'RE ASKING TO USE -- YES, SIR, YOU CAN COME THERE -- THAT YOU'RE ASKING TO USE FOR OPERATIONS AND MAINTENANCE. AND THAT WOULD TOTAL $2,875. >> THE FIRST THING, MR. CITY MANAGER, IS I'M 88 YEARS OLD AND VERY HARD OF HEARING. >> OKAY. [ LAUGHTER ]. >> OKAY. IF YOU WOULD REPHRASE THAT. I'M LOOKING AT YOUR LIPS RIGHT NOIF YOU WOU REPHRE THAT. [ LAUGHTER ]. >> SO IT SOUNDS LIKE THE PROJECT FOR THE MONUMENT HAS CHANGED TO PLAQUES POSSIBLY. >> OKAY. THIS HIT US LIKE A BOLT OF LIGHTNING. >> OKAY. >> JUST LAST WEEK. >> RIGHT. >> MS. HAWKINS -- AND BY THE WAY, MIKE BELL AND MS. HAWKINS HAVE ALWAYS BEEN VERY GOOD AT WORKING WITH US ON EVERYTHING. SHE FOUND OUT ABOUT WHAT WE WERE TRYING TO DO, AND SHE SAID, DID THEY GIVE YOU ENOUGH MONEY FOR THE TWO PLAQUES? AND I SAID YES. AS A MATTER OF FACT, THERE'S A LITTLE BIT LEFT OVER. AND SHE SA TWO PLAQUES? I SAYS, IF WE DON'T GET ALL THE MONEY, IT'S A DEAD PROJECT. >> OKAY. >> AND I SAID AS IT IS RIGHT NOW. >> MM-HMM. >> I SAID I CAN'T SAY WE CAN MODIFY IT BECAUSE WE HAVE A CONTRACT WITH A CONTRACTOR. >> RIGHT. >> SHE SAYS CAN WE EXPLORE THAT POSSIBILITY? WE HAVE A CALL INTO THE CONTRACTOR WHO HAS NOT RETURNED THE CALL WITH THE IDEA -- HER IDEA WAS THE MARKER LIKE YOU SAW THE MARKER IN THE HANDOUT MIGHT NOT BE QUITE AS APPROPRIATE AS WHAT SHE WANTED FOR THE REDESIGN OF THAT AREA >> RIGHT. >> NOW, THIS IS MY TERM. SHE WAS LOOKING FOR A MEMORIAL LEGACY THEME, LET ME PUT IT THAT WAY. WELL, THE BIGGEST THEME THERE IS THE TWO MASONIC LODGES THAT WERE IN THAT PARK. >> RIGHT. >> OKAY? AND I SAID, WE'VE GOT ALL THAT INFORMATION. THE HERITAGE COMMISSION HAS HEARD ALL OF THIS BEFORE. SHE SAYS, CAN WE HAVE IT? I SAID CERTAINLY. SHE SAYS THEN CAN WE SAVE THE PLAQUES? I SAID, I DON'T KNOW. SHE SAID COULD YOU DO THAT? I SAID, WHY DON'T WE BRING IT U TO THE COUNCIL? >> RIGHT. >> BOTH DEPUTY MAYOR PRO TEM TU AND COUNCILMEMBER RICCIARDELLI HAD -- WE TALKED ABOUT THIS JUST BRIEFLY. BUT IT WASN'T PART OF THE PLAN. >> RIGHT. WELL, MR. PINNELL, I'M TRYING TO MAKE SURE WE GET THE RIGHT DOLLAR AMOUNT WE'RE CONSIDERING. >> OKAY. >> THE BOTTOM LINE, I KNOW THERE'S THE O&M SIDE AND THE DOLLAR AMOUNT. >> ACTUALLY, Y'ALL HAVE BEEN FURNISHED THAT. SINCE YOU BROUGHT IT UP -- >> I HAD $2,875 O THE O&M EXPENSE, PART OF THAT. [ LAUGHTER ]. >> THIS IS THE (INDISCERNIBLE), AND THIS WAS JUST A PHONE CALL. SO I MIGHT BE WRONG HERE. >> YOU'RE FINE. YES, PLEASE. >> I THINK MR. PINNELL WANTS TO REALLOCATE THE MONEY FROM THE -- FOR THE PLANS THAT THE PLAQUES WOULD GO ON. THE PLINTH MONEY WOULD BE REALLOCATED TOWARDS THE O&M. >> UNDERSTOOD. >> THAT WAS THE REQUEST. YOU LISTENED. >> YOU T. [ LAUGHTER ] >> THANK YOU VERY MUCH. >> ALL WITHIN THE 18,000 WOULD FUND IT. IT'S BASICALLY ALLOWING THE EXISTING FUNDING TO BE USED FOR O&M AND THE PLAQUES. AND THAT'S -- IT'S 28 -- YEAH, $2,875. I SEE YES. I SEE YESES AROUND THERE. MR. PINNELL, YOU'RE GOOD TO GO. >> GOOD FOR YOU. >> CAN I GO SIT DOWN NOW? [ LAUGHTER ]. >> YES, SIR, YOU SURE CAN. >> I DIDN'T EVEN KNOW IT. >> AS MAYOR HARRY WOULD SAY, DON'T TK PAST THE SALE, YOU DID GREAT. [ LAUGHTER ]. >> IT'S APPROVED. >> THE SECOND IS THE PLANO ARTS ASSOCIATION. THIS GOES BACK TO AN APPEAL FROM A COMMISSION DECISION. IT'S $3,500. I SEE A YES, I SEE HEADS NODDING. >> Ricciardelli: BEFORE WE MOVE ON, TO RECOGNIZE CHAIRMAN HAROLD SICKLER, IF I'M NOT MISTAKEN, THIS IS HAROLD'S LAST YEARF HIS EIGHT-YEAR TERM ON THE HERITAGE COMMISSION. HE CAME ONTO THE HERITAGE COMMISSION WE MANY, ACTUALLY, IN 2015 WHEN WE BOTH CAME ON THE HERITAGE COMMISSION BEFORE I WAS ON THE COUNCIL. HE'S HAD AN EXCEPTIONAL TENURE AS CHAIRMAN OF THE HERITAGE COMMISSION. AND I WANTED TO THANK YOU, HAROLD, FOR YOUR SERVICE. [ APPLAUSE ]. >> Mayor Muns: OKAY, KAREN. >> HEY, WE'RE GOOD. LET'S CONTINUE. WE'RE GOING TO TALK ABOUT REVENUES NOW. YOUR ASSESSED PROPERTY VALUES ENDED UP AT 7.4 BILLION. OUT OF THAT 4.7 WAS EXISTING PROPERTY VALUES. 737 MILLION WAS DUE TO NEW GROWTH. WE HAVE A WIDE RANGE OF EXEMPTIONS THAT WE DO OFFER THE CITIZENS AND OUR CORPORATIONS HERE AT THE CITY OF PLANO. THIS WILL SHOW YOU REVENUE SAVINGS THIS YEAR FROM EXEMPTIONS TOTALLED $61.8 MILLION. AND ON THE 65 AND OVER, THEY'RE SAVING $7.7 MILLION, SO NEARLY $2 MILLION MORE THAN WHAT WAS RECEIVED LAST YEAR. THE AVERAGE MARKET VALUE -- NOW, THIS IS WITH THE PROPOSED RATE, 41.76 CENTS. ANYWAY, AT THE MARKET VALUE, IT'S 1885. OF COURSE, WE HAVE A HOMESTEAD VALUE. ANYWAY, IF IT YOU ADD IN ALL THE DIFFERENT TAXING ENTITIES, THE CITIZENS OF PLANO AT THAT AVERAGE HOME VALUE, WHICH IS ACTUALLY THE MARKET VALUE, THE TAX RATE IS 1.8681 OR $8,716 FOR THE YEAR. THAT'S WITH EVERYBODY TOGETHER. I WENT OVER THIS SLIDE THE OTHER NIGHT. DUE TO OUR EXISTING PROPERTY VALUES GROWING AND OUR NEW GROWTH IS STARTING TO STOP, WE GOT 50% GOING TO RESIDENTIAL NOW AND 50% IS BEING PAID FOR BY COMMERCIAL. ONCE AGAIN, TAX EXEMPTIONS AND THE TAX FREEZE. A 20% HOMESTEAD EXEMPTION THIS SAVINGS NUALLYVINGS OF $422 IN IF YOU ARE 65 OR OVER OR DISABLED, YOU RECEIVE A $40,000 EXEMPTION, WHICH TOTALS ABOUT 171 A YEAR. AND THEN FOR THE TAX FREEZES ON THE 65 AND OVER, THAT'S $332 A YEAR. DO I HAVE ANY QUESTIONS REGARDING YOUR ASSESSED PROPERTY VALUE? OKAY. WE WANTED TO GO BACK THROUGH -- NOT GO BACK THROUGH. JUST PROVIDE SOME CLARIFICATION. [ LAUGHTER ] WE'RE NOT GOING TO GO BACK THERE AGAIN. OH, MY LORD. THAT WAS UNBELIEVABLE. OKAY. ACCORDING TO THE (INDISCERNIBLE) THE DEBT SERVICE RATE AND UNUSED INCREMENT RATE, IF APPLICABLE, TAX RATE. TOTAL VOTER APPROVAL - THE FORMULA IS RIGHT DOWN HERE. VOTER APPROVAL TAX RATE EQUALS NO NEW REVENUE, MAINTENANCE AND OPERATION TIMES THE 1.35. YOU CURRENT DEBT RATE GOES ON TOP OF THAT. ANY UNUSED INCREMENT. THE WAY YOU DO THEALCULATION FOR THE TRUTH IN TAXATION, YOU HAVE SOFTWARE, AND IT PROVIDES YOU ALL KINDS OF DIFFERENT FORMULAS. THE FORMULA THAT DOES NOT CHANGE THAT YOU HAVE TO FILL OUT IS THE ONE THAT WILL GIVE YOU THE NO NEW TAX RATE AND THE ONE THAT WILL GIVE YOU THE VOTER APPROVAL RATE. AFTER YOU GET THOSE DONE, YOU GO DOWN, AND THERE'S ALL KINDS OF DIFFERENT THINGS THAT YOU CAN GO IN AND ADD, TAKE AWAY, OR WHATEVER YOU'RE GOING TO DO. IT'S A CHECK MARK SYST. I PROVIDED A COUPLE OF EXAMPLES HERE. IF WE HAD A VOTER APPROVAL -- IF WE HAD POLLUTION CONTROL, WE COULD CHECK THAT BOX. THIS SECTION APPLIES TO US. IF WE HAD AN EMERGENCY REVENUE RATE, THAT WOULD APPLY TO US. IF WE WERE COLLECTING SALES TAX TO GO TOWARDS PROPERTY TAX, WE WOULD CHECK THAT BOX. AT THE END OF THE DAY, WE GO ON DOWN. WE HAVE THE UNUSED INCREMENT RATE. AND YOUHECK THAT BOX IF YOU'RE G. IN MY TRAINING AND DISCUSSING THIS WITH THE TAX ASSESSOR UP AT THE COUNTY, YOU DO NOT HAVE TO USE THIS BOX UNLESS YOU'RE GOING TO USE IT. THIS YEAR WE CHOSE TO USE IT. THAT BEING SAID, YOUR VOTER APPROVAL RATE IS THE $43.55. THE NO NEW REVENUE IS 38.65 CENTS, AND THE OTHER NIGHT, THE PROPOSED RATE THAT WAS DECIDED TO PUT IN THIS FORM IS THE 41.76 CENTS. SO THIS IS THE FORM THAT IS GOING TO BE PUBLISHED IN THE PAPER. MR. ISREALSON, DID I SAY ANYTHING WRONG THERE? >> I AM TRYING NOT TO COMPLICATE THIS, SO I'M GOING TO SAY NO, YOU DID NOT. [ LAUGHTER ]. >> OKAY, VERY GOOD. ANY QUESTIONS? >> Mayor Muns: ANY QUESTIONS REGARDING THAT EXPLANATION? ALL RIGHT. >> OKAY. YAY. LET'S TALK ABOUT SALES TAX REAL QUICK. OKAY. I KNOW EVERYBODY KNOWS IN HER OUR SALES TAX CAP POLICY. WE DO AN AVERAGE OF THREE YEARS, AND THEN THIS LAST YEAR, WE HAVE DECIDED TO ADD ON AN INFLATIONARY FACTOR OF 6%. YOUR SALES TAX FOR THE RE-ESTIMATE IS $114.5 MILLION. THAT'S WHAT WE'RE HOPING COMES IN FOR THIS YEAR. WE'RE LACKING TWO MONTHS. WE DID COME IN LOWER THIS LAST MONTH. HOWEVER, ONE OF THE REASONS WE WERE LOWER THIS MONTH IS BECAUSE LAST YEAR AT THIS TIME WE HAD A POSITED AUDIT ADJUSTMENT. SO WE SHOULD BE ON TRACK FOR THAT $114 MILLION. WHEN THEY DO THE THREE-YEAR AVERAGE, YOU DIVIDE IT BY THREE, ADD IN YOUR INFLATION. FOR NEXT YEAR, WE HAVE $110.7 MILLION WE'RE PROJECTING. JUST A COUPLE OF THINGS TO KNOW, LAST YEAR -- OF COURSE, THIS WAS AFTER COVID. SALES TAX REALLY WENT ON A TRAIL UP THERE. SO LAST YEAR WE ENDED UP AT 17.1% OVER THE PRIOR YEAR. THIS WAS COMING OUT OF COVID. IT HAS DEFINITELY GONE BACK DOWN. WE'RE ESTIMATING WE SHOULD BE 5% OVER THIS YEAR. IT'S SOMETHING TO ALWAYS KEEP IN MIND. THE MAJORITY OF YOUR SALES TAX IS COMING IN FROM NONRETAIL. RETAIL ACCOUNTS FOR 35%. AND OF COURSE, THAT'S WHERE WE'RE GOING TO GO TO THE MALLS OR WE'RE GOING TO GO TO TARGET. YOUR BUSINESS TO BUSINESS OR NONRETAIL ACCOUNTS FOR 65% OF THE SALES TAX COMING IN. THIS IS A LOOK AT YOUR MAJOR RETAIL INDUSTRIES. THE NUMBER ONE ONE IS GENERAL MERCHANDISE STORES. AND NUMBER TWO IS NONSTORE RETAILERS, MEANING LIKE THE AMAZONS OKAY? NUMBER THREE ON HERE IS FOOD AND BEVERAGE STORES. AND NUMBER FOUR IS ELECTRONICS. ON YOUR NONRETAIL SIDE, FOR THIS YEAR YOU'VE GOT PROFESSIONAL AND OTHER SERVICES. TELECOM AND INFORMATION SERVICES. ANDUMBER THREE THIS YEAR IS HOTEL AND FOOD SERVICES OR RESTAURANTS. THEN NUMBER FOUR IS WHOLESALE AND OTHER RELATED. WE DO HAVE A VERY NICE SALES TAX PER CAPITA AMOUNT. IT HAS GONE FROM $372 UP TO 391.86 CENTS. I JUST WANTED TO THROW THIS OUT. I REALLY THOUGHT THIS WAS GO DOWN. DURING COVID, OUR LIQUOR, WINE, AND ALL THAT, WENT WAY UP. [ LAUGHTER ]. >> WELL, HOLD ON. THIS IS REALLY SOMETHING TO THINK ABOUT. SINCE THEN, THOUGH, ALL YOUR CITIES AROUND YOU HAVE HAD ELECTIONS AND HAVE BUILT LIQUOR STORES. IN McKINNEY, THEY HAVE ALL KINDS OF STUFF. AND THAT HAS NOT GONE DOWN. TO ME, I JUST CAN'T BELIEVE IT. [ LAUGHTER ] I THOUGHT IT WOULD GO DOWN. >> Mayor Muns: YOU'RE SAYING THE COMPETITION SHOULD HAVE BROUGHT THAT DOWN? >> YES, THAT'S ALL I'M SAYING. I SWEAR TO GOD THAT'S ALL I'M SAYING. THAT'S ALL I'M SAYING. OKAY. AND OF COURSE, FACTORS IMPACTING SALES TAX IS COMPETITION FROM SURROUNDING CITIES, ECONOMIC CONDITIONS, ANY MOVEMENT OF BIG BUSINESSES, WHICH WE MONITOR OUT OF THE CITY, YOUR BUSINESS VERSUS RETAIL, AUDIT ADJUSTMENTS, THAT'S ALWAYS A BIG ONE, THE BACK-TO-SCHOOL SALES TAX HOLIDAY. AND THEN, OF COURSE, WE DO HAVE OUR POLICY THAT LIMITS US TO THE THREE-YEAR AVERAGE, WHICH HAS WORKED OUT VERY, VY WELL, ESPECIALLY DURING THE ECONOMIC DOWNTURN OR WHEN COVID HIT. IT REALLY HELPED US OUT FINANCIALLY. OKAY, ANY QUESTIONS ON SALES TAX? YAY, WE'RE MOVING RIGHT ALONG. >> Ricciardelli: THANK YOU, MAYOR. WE WILL BE, I PROMISE. >> Mayor Muns: WE'VE HIT A ROADBLOCK. >> Ricciardelli: SORRY. I'LL TRY NOT TO BE A ROADBLOCK. SO KAREN, THAT RE-ESTIMATED SALES TAX NUMBER WAS 114.5 MILLION FOR THE SALES TAX. >> YES. >> COULD YOU REMIND ME PRIOR TO THE RE-ESTIMATE, WHAT WAS THE BUDGETED NUMBER THIS PAST YEAR FOR SALES TAX. SORRY, I DIDN'T MEAN FOR THAT TO BE A MEMORY TEST. SO THE BUDGETED NUMBER FOR THE 22/23 BUDGET FOR SALES TAX. >> THEY'LL GET THAT. WHAT'S OUR ORIGINAL BUDGET NUMBER? I WANT TO SAY IT'S LIKE 110? >> 114. I'M SORRY, 110. 110.7 MILLION. >> Ricciardelli: PERFECT. >> SO WHEN HE WAS ASKING WHAT WAS OUR ORIGINAL BUDGETING NUMBER, THAT WAS 110. HOPEFULLY WE'LL COME IN AT 114. >> Ricciardelli: JUST TO FOLLOW UP, IF WE DO H THE 114.5 RE-ESTIMATE, THAT WOULD RESULT IN SURPLUS I GUESS WE'D BE LOOKING AT IN OCTOBER? >> YES, IN OCTOBER. AS SOON AS THE YEAR ENDS AND ACCOUNTING CLOSES OUT THE BOOKS, WE WILL COME BACK TO YOU. THIS LAST YEAR WE COLLECTED 2 MILLION OVER WHAT WAS RE-ESTIMATED. AND Y'ALL DECIDED AT THAT POINT TO PUT THAT 2 MILLION INTO THE RAINY DAY FUND. SOME YEARS YOU'VE PUT IT INTO CAPITAL MAINTENANCE, SOME YEARS ALLOCATED FOR ONE-TIMEX PEND TOURS. SOME YEARS YOU'VE HAD IT FOR ECONOMIC DEVELOPMENT. WE WILL COME BACK IN OCTOBER WITH THAT NUMBER. >> 22/23, 100.6 MILLION WAS THE ORIGINAL BUDGET. >> Ricciardelli: THANK YOU FOR THAT CASEY. SO WE'RE LOOKING AT A POTENTIALLY $14 MILLION SALES TAX SURPLUS COMING BACK. >> WAIT, WAIT, WAIT. >> IT'S ALREADY BAKED IN. >> Ricciardelli: SO WHEN WE RE-ESTIMATE THAT, WE'RE NOT USING THAT IN THE THREE-YEAR ROLLING AVERAGE. WE'RE SPENDING IT ALREADY IN THE BUDGET. >> YES. >> Ricciardelli: IN OCTOBER THE RE-ESTIMATE, NOT OVER -- VER >> IT'S GOT TO BE OVER THAT 114 WHEN WE COME BACK. >> Ricciardelli: VERY GOOD. THANK YOU FOR THAT CLARIFICATION. >> Tu: YOU SCARED ME, ANTHONY. NUMBER WAS BIGGER THAN USUAL. >> Mayor Muns: LET'S GO ON TO WATER AND SEWER. >> OKAY, VERY GOOD. WE HAVE FINAL NUMBERS IN FROM NORTH TEXAS MUNICIPAL WATER DISTRICT. OUR WATER YEAR ENDED ON JULY 31st. WE ENDED UP USING 21.534 BILLION GALLONS OF WATER. ATHE E OF E DAY, THEY DID SEND US A LETTER WHEN WE FIRST MET WITH Y'ALL A COUPLE WEEKS AGO. THE LETTER DATED JUNE 30th HAD AN 11% INCREASE, AND WE WERE GOING TO GO TO $3.77 PER THOUSAND GALLONS. THE NEW ONE THAT CAME IN IS A 9% INCREASE OR $3.69 PER THOUSAND GALLONS. BUT HERE'S THE DEAL. I WAS HOPING WE WERE GOING TO SAVE SOME MONEY. THATIDN'T HAPPEN. AT THE END OF THE DAY, THEY MOVED A WATER TRANSMISSION FACILITY LINE THAT LOOKS TO ME IT WAS UP THERE INCLUDED IN THE WATER PART. MOVED IT DOWN TO A SEPARATE ITEM, AND THAT TOTALS $1.7 MILLION. SO WHEN I WENT IN TO REDO ALL THE RATES, WE REALLY DIDN'T SAVE THAT MUCH MONEY. SO AT THE END OF THE DAY, WE ARE STICKING WITH OUR PASS-THROUGH WATER RATE OF 6%, OKAY? ON THE WATER SIDE. ON THE WASTEWATER SIDE, NOTHING REALLY CHANGED ON WASTEWATER. WE'RE GOING WITH A 3%, EVEN THOUGH THE DISTRICT IS GOING UP, LIKE 10%. WE'RE GOING WITH 3. AT THE END OF ALL THIS, WHAT WE HAVE IS WE'RE GOING TO END -- WHEN I FIRST TALKED TO Y'ALL A COUPLE WEEKS AGO WITH 79 DAYS OF WORKING CAPITAL. NOWE HA 80 DAYS CAPITAL. SO WE'RE PASSING THROUGH A 6% WATER, 3% ON WASTEWATER, AND WE HAVE SPOKEN TO THE FINANCE DEPARTMENT. THE UTILITY SYSTEM WE USED TO HAVE, YOU HAD TO PASS THROUGH THE RATES NOVEMBER 1st. NOW WE CAN PASS THEM THROUGH OCTOBER 1st. SO THESE ARE GOING TO GO INTO EFFECT OCTOBER 1st. JUST A COUPLE OTHER SLIDES TO SHOW YOU, THIS IS THE MEMBER CITY WATER RATE, THE HISTORICAL FROM NORTH TEXAS MUNICIPAL WATER DISTRICT. THIS IS A SLIDE THAT LOOKS ALL OVER THE PAGE, BUT AT THE END OF THE DAY, THAT BLUE LINE REPRESENTS OUR TAKE OR PAY MINIMUM. THE CURRENT YEAR IS 25.7 BILLION. OUR NEW TAKE OR PAY IS 25.1 BILLION. WE HAVE THE COST OF UNDELIVERED WATER IS 10.6 MILLION. AND THE ACTUAL GALLONS WE'RE USING IS 21.8. I MEA 21.5. SO THAT'S WHAT THIS CHART DOES. WHAT DOES ALL THIS MEAN TO THE AVERAGE CUSTOMER? WE CONSIDER THE 5,000-GALLON WATER TO BE LIKE OUR SENIOR RATE OKAY? SO IF AN INDIVIDUAL USES 5,000 GALLONS OF WATER, 5,000 ON THE WASTEWATER SIDE, THEY WILL SEE AN INCREASE OF 4.2% OR $3.24 A NTH. AN AVERAGE WATER USER AT THE 10,000 WATER, 5,000 FOR WASTEWATER, WILL SEE AN AVERAGE INCREASE OF $4.48. THE PEOPLE THAT ARE WATERING THEIR LAWNS A LOT, USING A LOT OF WATER AT 30,000 GALLONS OF WATER, 5,000 OF WASTEWATER, WILL SEE AN $11.89 RATE INCREASE PER MONTH OR 5%. COMMERCIAL, 50,000 GALLONS OF WATER AT A TWO-INCH METER, 50,000 AT WAEWATER, IS $44.44 OR A 4.6% INCREASE. SO THESE INCREASES ARE A LOT SMALLER THAN THE ORIGINAL 11%, 9% THAT THE DISTRICT WAS PASSING ON. ANY QUESTIONS REGARDING THE NEW RATES? AND THAT'S JUST A LOOK AT YOUR FINAL SUMMARY AT THE 80 DAYS. ANY QUESTIONS REGARDING WATER AND SEWER? >> I'D REMIND YOU WE HAVE FOUR MORE YEARS IN THE GLIDE PATH TO GET TO THE FIVE-YEAR ROLLING AVERAGE, CONTINUE TO SEE OUR TAKE OR PAY, REDUCING NOMINALLY EACH YEAR. IT IS HEADING IN THE RIGHT DIRECTION, I LIKE TO CALL THAT THE ISRAEL DEPRSON DEPRESSION, DOWN IN A POSITIVE WAY. THE GROWTH OF THE REGION IS DEMANDING ADDITIONAL WATER RESOURCES. THEY'LL BE NOTHING MORE THAN MORE IN THE FUTURE. IT WILL CTINUE TOINCREASE. IT TRULY IS OUR MOST PRECIOUS RESOURCE FOR THE GROWTH OF THE AREA. DON'T WANT ANYONE TO BE SURPRISED THAT WE CONTINUE TO SEE THAT TRAJECTORY. >> ARE WE GOOD? LET'S TALK ABOUT SOLID WASTE. THE LAST COUPLE YEARS THE SOLID WASTE FUND HAS BEEN STRUGGLING. THEY HAVE BEEN HIT. THE COST OF EQUIPMENT HAS TRIPLED QUADRUPLED. THE COST OF FUEL HAS DONE THE SAME THING. WE HAVE RAN INTO INFLATIONARY ISSUES, PERSONNEL COSTS. ANYWAY, WE HAVE A FINANCIAL POLICY THAT STATES WE'RE SUPPOSED TO HAVE 15 DAYS OF WORKING CAPITAL. WE'VE BEEN RUNNING NEGATIVE THE LAST COUPLE OF YEARS. THE LAST TIME WE HAD A POSITIVE FUND BALANCE THAT MET OUR FINANCIAL POLICIES WAS BACK IN 2021. AT THE END OF THE DAY, WE DECIDED TO HIRE IN A RATE CONSULTANT. PLUS, THEY DID A FULL FIVE-YEAR COST OF SERVICE PLAN FOR US. AND YOU'RE ABOUT TO HEAR FROM THEM. HE WORKS FOR NUGEN. GARRETT. WE'VE ALL WORKED ON THIS PLAN. ABBY IS GOING TO COME UP, AND SHE'S GOING TO LET YOU KNOW WHAT'S BEEN HAPPENING OVER IN SOLID WASTE. THEN WE'RE GOING TO GET MATTHEW UP TO TALK ABOUT THE NEW RATES. COME ON UP. >> GOOD EVENING. I'M ABBY OWENS, ONE OF THE ASSISTANT DIRECTORS IN PUBLIC WORKS, AND I JUST RAN TO GET MY GLASSES, SO I'M CATCHING MY BREATH. I WAS HERE WITH YOU GUYS LAST YEAR ON A BEAUTIFUL SATURDAY AND JUST WANTED TO KINDF HHLIGHT SOM ABOUT LAST YEAR TO PROMPT WHY WE BROUGHT IN THE CONSULTANT FOR OUR STUDY. OUR RATE HISTORY INCREASE IS IN FRONT OF YOU THERE. WE'VE REALLY KIND OF HELD OUR RATE RELATIVELY LOW AND CONSTANT FOR A WHILE. LAST YEAR WE ASKED FOR $2.50. AND THE GOAL WAS TO GET US TO ZERO WORKING DAYS. UNFORTUNATELY, DUE TO WHAT KAREN MENTIONED, IN SOLID WASTE, WE HAVE THREE PRETTY CONSISTENT COSTS THAT CONTINUE TO INCREASE, EQUIPMENT, PERSONNEL TO DRIVE THE EQUIPMENT AND COMPLETE THE SERVICES, AND THE TIPPING CTS FO ACTUALLY TAKING OUR GARBAGE TO THE LANDFILL. AND SO THIS YEAR BASED UPON WHAT WE'VE FOUND THROUGH THE STUDY, WE ARE RECOMMENDING A $4 INCREASE TO THE 95-GALLON CART WITH A PROPORTIONAL INCREASE, IT'S ABOUT A 20% RATE INCREASE FOR THE 68 GALLON AND EXTRA CART AS WELL. OUR EQUIPMENT IMPACTS, THIS IS A FAMILIAR SLIDE FROM LAST YEAR. WE WERE ACTUALLY ABLE TO SECURE CONSISTENT PRICING FOR 22/23 AND 23/24. WHEN WE PURCHASED OUR SIDE AND REAR LOADERS AND PLACED THOSE ORDERS, WE'VE BEEN AE TO HOLD THAT CONSTANT. THE INKLINGS WE'RE GETTING FOR FUTURE YEARS IS GOING TO BE AT LEAST PROBABLY 10% OF AN INCREASE, SO THAT'S CONCERNING. ALSO OUR GRAPPLE TRUCK, WE PURCHASED ONE LAST YEAR AND THE ONE THIS YEAR HAS CONTINUED TO INCREASE, NOW ALMOST $300,000 FOR THIS VEHICLE. THOSE TRUCKS ARE USED FOR PAID COLLECTIONS AND BULKY COLLECTIONS. SO THIS WAS OUR SOLID WASTE FUND BALANCE BREAKDOWN THAT I SHOWED YOU LAST YEAR. BACK IN 2015/16, WE HAD WONDERFUL WORKING CAPITAL UP TO 72 AND 77 WORKING DAYS. ALSO REMEMBER OUR COST PER DAY TO OPERATE WAS LOWER AS WELL. LAST YEAR THE AUDITED BALANCE HD US FINISHING AT NEGATIVE $586,000, WHICH IS LESS THAN ZERO WORKING DAYS. AND THEN THIS YEAR AT OUR RE-ESTIMATE, IT'S GOING TO BE AT 719, BUT THAT INCLUDES A $2.5 MILLION LOAN FROM THE WATER AND SEWER FUND. THEN THE RATE INCREASE WE'RE PROPOSING OF $4, WILL BRING US BACK TO -- HOPEFULLY, IF WE CAN COTINUE WITH THE RATE WE'RE GOING, ABOUT $900,000 POSITIVE TO END NEXT FISCAL YEAR. THIS DOES INCLUDE REPAYMENT OF THE WATER AND SEWER LOAN FUND THAT WE RECEIVED BACK OVER THE NEXT FIVE YEARS? OKAY, FIVE YEARS. WE JUST KIND OF WANT TO HIGHLIGHT THESE TO SHOW YOU THAT WORKING BALANCES CONTINUE TO GO DOWN AND WE'VE CONTINUED TO SEE THAT HAPPEN. AND LAST YEAR IS REALLY WHAT KIND OF PUSHED US OVER THE EDGE. GARRETT WITH NUGEN STRATEGIES SO HE CAN WALK YOU THROUGH THE FINDINGS OF OUR STUDY >> THANK YOU, ABBY. SO GOOD EVENING, MAYOR AND COUNCIL. OFFICE JUST ACROSS THE WAY HERE IN RICHARDSON BUT LIVE IN McKINNEY. GLAD TO BE WITH YOU. AM I DRIVING? >> YES. >> SPRING FORWARD. >> THAT'S FANCY. >> IF YOU WANT THE BIG -- >> WELL DONE, WELL DONE. >> THERE YOU GO. THEN GO THERE. >> I WAS LOOKING FOR A CLICKER. FANTASTIC. A QUICK DITTY ABOUT NUGEN, WE SUPPORT UTILITIES RANGING FROM HAWAII TO AMERICAN SAMOA. BY AND TEXAS-CENTRIC FAIRM. WE HAVE SOLID WASTE, WASTEWATER PRACTICE AND HELP IN THE GENERAL FUND AS NEEDED. PURPOSE OF THIS STUDY -- FORMATTING IS A LITTLE OFF, MY APOLOGIES -- IS TO CONDUCT A COMPREHENSIVE STUDY RELATIVE TO THE PROGRAM HERE AT THE CITY OF PLANO. THE SECOND OBVIOUSLY IS WE HAVE TO HAVE THE LONG-TERM VIABILITY. YOU SAW YOUR CAPITAL DAYS GO DOWN. THAT'S NOT THE TRAJECTORY YOU'D EFER. YOU HAVE A POLICY THAT WOULD DICTATE OTHERWISE, SO WE WANT TO GET BACK IN THE BLACK WITH THIS RATE INCREASE. ADDITIONALLY, WE PROVIDE A FIVE-YEAR RATE FORECAST. AND THEN AT THE END, YOUR STAFF WILL GET OUR WORKING MODEL AS A TOOL. THAT'S WHAT THAT MEANS AS A FINANCIAL PLANNING TOOL GOES. GENERALLY THIS CHART IS BLEAK IN THAT THE LIGHT BLUE LINE COVERS YOUR RESIDENTIAL REVENUES. AND THE DARK BLUE LINE IS YOUR COST. AND AGAIN, I HAVE TO APOLOGIZE. SOMETHING GOT LOST IN TRANSMISSION HERE. HOPEFULLY YOUR PRINTED PACKET LOOKS CORRECT. >> I WAS GOING TO SAY, Y'ALL NEED TO GO BY WHAT'S IN YOUR PACKET OR THE PACKET WE SENT YOU OUT ELECTRONICALLY. WE CAME AND REVIEWED THIS EARLIER TODAY, AND IT WASN'T MESSED UP LIKE THIS, SO I DON'T KNOW WHAT'S HAPPENED. >> WE HAVE A PROJECT TO IMPROVE THE TECHNOLOGY. [ LAUGHTER ]. >> OKAY. SORRY, MATT. >> NO, NO, NO WORRIES AT ALL. >> THEY DO HAVE A PACKET THAT'S SHOWING THEM. >> FANTASTIC. AS LONG AS YOU SEE THE RIGHT NUMBERS. I WANT TO MAKE SURE YOU HAVE THE RIGHT INFORMATION AS WE TALK ABOUT THIS THIS EVENING. ALONG THE FORECAST, WE DO HAVE THE ADDITIONS OF FLEET. YOU'LL SEE A LITTLE BIT OF AN INCREASE RAMPING UP 25, 26, AND 27. SO THAT ACCOUNTS FOR THE DARK BLUE LINE TRENDING UP. OUR METHODOLOGY IS TO USE THE HISTORICAL BASIS AND USING KNOWN AND MEASURABLE CHANGES IN THE FUTURE. THE REVENUE REQUIREMENT EFFECTIVELY IS ALGEBRA. WE TAKE YOUR COSTS, ASTS, LEAVING US WITH THE NET AMOUNT TO MAKE UP THE RATES. TONIGHT WE'RE FOCUSING ON THE RESIDENTIAL RATE. WE DID ALLOCATE YOUR COSTS TO VARIOUS CATEGORIES AND COST OF SERVICE. AND THEN ULTIMATELY HAVE A RESOLVE OF A RATE. SO WHAT'S BAKED IN THE CAKE FOR REVENUE REQUIREMENT? REALLY THAT'S YOUR O&M. THE VEHICLE REPLACEMENT COST AND YOUR CAPITAL IMPROVEMENT PROJECT. SO A LOT OF HEAVY EQUIPMENT OUT THERE. 50-PLUS EMPLOYEES DOING THE WORK. A LOT OF ROUTES. SO YOU'VE GOT A LOT OF PEOPLE AND A LOT OF EQUIPMENT. SO THE FIXED-COSTATURE OF THIS UTILITY REQUIRES A SUBSTANTIAL REINVESTMENT OVER TIME. SO THE RATE RECOMMENDATIONS, AS ALREADY STATED BY ABBY IS TO MOVE FORWARD WITH A $4 INCREASE IN FISCAL 24 ON THE RESIDENTIAL RATE. YOU'LL SEE THAT HAS A SIMILAR EFFECT BUT NOT QUITE $4 ON THE OTHER TWO CART TYPES. THEN WE HAVE THIS METERED APPROACH WHERE WE HAVE A DOLLAR PER YEAR, SUBJECT TO CHANGE AS NEEDS CHANGE.pTHAT'S WHAT WE HA FORECAST WITH KNOWN ASSUMPTIONS. THAT INCLUDES THE NORTH TEXAS COST AND SOME OTHERS. ANY QUESTIONS ON THE RATES OKAY. FANTASTIC. SO THE FULL COST OF SERVICE REALLY DUG BELOW THE SURFACE. WE GOT DOWN AND LOOKED AT 19 1/2 EMPLOYEES DOING RESIDENTIAL TRASH. 18 DOING THE YARD WASTE. ALL OF THOSE COST COMPONENTS AND THE EQUIPMENT RELATED TO THAT ARE BAKED INTO THESE UNDERLYING FIGURES. THIS CHARGE, TO THE CREDIT OF STAFF, WAS THEIR RECOMMENDATION, REALLY BREAKS DOWN YOUR FEE OR RESIDENTIAL RATE PER MONTH INTO E VARUS SERVICES YOU PROVIDE. THAT'S IMPORTANT BECAUSE YOUR RESIDENTS COMPARE THEMSELVES TO OTHER CITIES. NOT ALL OTHER CITIES OFFER ALL OF THESE SERVICES. >> WHEN YOU PUSH THE BUTTON, IT WILL COME UP. >> DID I MISS SOMETHING? WE'RE GOOD? >> WE'RE JUST TALKING. >> OKAY, FAIR ENOUGH. >> YOUR MIC IS ON, KAREN. [ LAUGHTER ]. >> IF YOU PUSH THE BUTTON, YOUR 2360 WILL COME UP. >> FAIR ENOUGH. THANK YOU. I CAN PUSH BUTTONS. >> THERE YOU GO. >> NO APPLAUSE. [ LAUGHTER ]. >> NO APPLAUSE REQUIRED. SO AGAIN, THIS IS THE CRUX OF OUR SERVICE ANALYSES. WE SPEND A LOT OF TIME OUT LINING WHO DOES WHAT, ASSIGNING PEOPLE IN PARTIAL POSITIONS. KUDOS TO ABBY AND RYAN AND DILLON IN BUDGET WHO SPENT A LOT OF TIME WITH US. ANY QUESTIONS ABOUT THE UNDERLYING ANALYSIS WITH THIS NET RESULT RATE OF 2360? OKAY. FANTASTIC. SO THE RATE PLAN, AS YOU SEE, DOESN'T ACTUALLY ALWAYS KEEP OUR LINE ABOVE COSTS, SO THAT LINE GREEN LINE IS YOUR SERIES RELATIVE TO REVENUES. THE DARK GREEN ARE EXPENSES. AGAIN, THAT LARGE INCREASE WE CALLED OUT ON THIS SLIDE DOES TALK ABOUT THE BIG CHANGES TO FLEET. BUT BECAUSE WE HAVE TWO YEARS BEFORE OUR MODEL WOULD EVEN SHOW AN UNDER RECOVERY, A LOT CAN CHANGE IN THAT TIME. SO THIS DOLLAR PER YEAR, WE THINK, IS MORE THAN ADEQUATE. ADDITIONALLY WE HAVE SOMETHING IN OUR INDUSTRY CALLED RATE GRADUALISM. WE THINK IF THIS WORKS OVER A FIVE-YEAR PERIOD, SMOOTHING IMPACTS TO YOUR RESIDENTS, IT MAY BE MORE PALATABLE. OF COURSE, SUBJECT TO CHANGE, YOU AND FUTURE COUNCILS. THAT'S THE TRAJECTORY WE'D SHOW FROM OUR ANALYSIS TODAY. ALL RIGHT. SO RESIDENTIAL BILL COMPARISON. A BIG DISCLAIMER ON EVERY COMPARISON, WE DO THIS IN WATER AND WASTEWATER. ANY OTHER SERVICE YOU OFFER. NOT ALL SERVICES ARE ALIKE. THAT SAID, THESE ARE THE RATES YOUR RESIDENTS MAY COMPARE YOU TO. YOUR CURRENT POSITION AT 1960 PUT THEM IN THE BOTTOM QUARTILE. ADDITIONALLY, THERE ARE NOTES. HOPEFULLY THOSE ARE BIG ENOUGH TO SEE. WE DO HAVE INFORMATION RYAN GATHERED FROM OTHER CITIES RELATIVE TO WHAT THEY'RE PROPOSING. SO YOU'LL SEE THAT'S TRUE OF McKINNEY AND RICHARDSON AS THEY POSTED IT ON THEIR '24 PROJECTIONS AT THIS POINT. ALL RIGHT. SO NEXT UP IS REALLY TO LOOK A THE COST OF SERVICE-BASED RATES. OF COURSE, COUNCIL WILL TAKE ACTION ON WHATEVER RATE THEY SEE NECESSARY FOR '24. ULTIMATELY, WE THINK YOU SHOULD. THAT'S WHY WE HAVE A TOOL WE'RE GOING TO EQUIP YOUR BUDGET TEAM WITH TO DO JUST THAT. AS OTHER THINGS COME UP, TASK TWO HERE, THE BIG STEP IS TO LOOK AT OTHER AREAS. WE FOCUS ON RESIDENTIAL. YOU HAVE OTHER THINGS IN PLAY RELATIVE TO COMPOST AND FOOD WASTE PROGRAMS THAT THE COUNCIL WILL PROBABLY BE LOOKING AT IN THE NEAR FUTURE. THOSE COME UP, THEY MAY WARRANT ADJUST OF COST TO SERVICE AS WE'VE PRODUCED TODAY. WITH THAT AND HEARING NO QUESTIONS, I'D BE GLAD TO FIELD ANY NOW >> MAYOR AND COUNCIL, OUR ENVIRONMENTAL WASTE SERVICE FUND IS AN ENTERPRISE FUND, SO WE HAVE THIS FUND SELF-SUPPORTING THROUGH THOSE RATES. SO WHILE I UNDERSTAND THERE'S SOME ELEMENTS ABOUT RATE INCREASES AND THINGS OF THAT NATURE, FOR US IT'S IMPORTANT THAT WE GET BACK TO OUR FINANCIAL POLICIES AND GET THIS ON SOLID GROUND. HAVING Y'ALL ALL LIVE HERE AND KNOW TSERY WELL, OUR TRASH COLLECTION IS A VERY IMPORTANT SERVICE IN MAKING SURE THAT IT'S DONE AND DONE CORRECTLY AND THAT THE EQUIPMENT WORKS IS INCREDIBLY IMPORTANT. AND WHILE WE'LL GET TO SALARY DISCUSSIONS LATER, THIS IS ONE OF THE AREAS WE'VE HAD TO WORK ON OVER THE LAST COUPLE YEARS TO MAKE SURE WE'RE ADEQUATELY RESOURCED TO PROVIDE THIS UTILITY. WANTED TO REMIND Y'ALL OF THAT. >> Mayor Muns: THANK YOU, MATTHEW. >> THANK YOU. >> Mayor Muns: APPRECIATE IT. SO OUR NEXT ITEM IS PROGRAM CHANGES CORRECT? ALL RIGHT. COMPENSATION PLAN. MS. ROSS. >> GOOD EVENING, MAYOR MUNS, CITY COUNCILMEMBERS, MR. ISREALSON, MS. MIMS. I'M LA SHAWN ROSS, DEPUTY CITY MANAGER FOR THE CITY OF PLANO AND I SERVE AS HR DIRECTOR AND AM HERE TONIGHT IN THAT CAPACITY. KAREN, I THOUGHT YOU WERE GOING TO TELL ME TO CHANGE THESE SLIDES. WANT TO TALK TO YOU TONIGHT, JUST GIVE YOU AN OVERVIEW, SOME DETAILS, SOME CONTEXT ABOUT THE HOW WE MANAGE COMPENSATION, WHAT'S KIND OF HAPPENING WITH THAT RIGHT NOW. AND ALSO TALK TO YOU ABOUT OUR HEALTH PLAN AND GIVE YOU AN UPDATE ON THAT. YOU'LL SEE THAT I PUT SOME JUST ADDITIONAL NOTES UNDERNEATH. STEWARDSHIP AND EFFECTIVE MANAGEMENT OF FINANCIAL AND RELATIONSHIP TRANSITION. IT FEELS LIKE WE'RE IN FAIRLY COMMON TRANSITION. I WANT TO ASSURE YOU WE UNDERSTAND HOW TO MANAGE TRANSITION. SPEAKING FOR ALL OF MY IN THE CITY FOR A VERY LONG TIME IN TERMS OF CULTURE, POLICIES, AND PROCESSES THAT WE USE. WHEN WE TALK ABOUT STEWARDSHIP AT THE CITY OF PLANO, WE TAKE IT VERY SERIOUSLY. SO I WANT TO SPEAK AGAIN FOR US. I WANT TO GIVE YOU NOT JUST THE DETAILS FOR TONIGHT. I WANT TO NOT JUST ONLY TALK TO YOU ABOUT THE FACTS AND DATA ANALYSIS FOR COMPENSATION AND HEALTH PLANS, BUT I WANT TO TALK ABOUT HOW THAT FITS INTO OUR ORGANIZATION, HOW THAT WORKS FOR OUR EMPLOYEES, HOW WE COMPARE WHEN WE TALK ABOUT OTHER CITIES, OTHER MUNICIPALITIES, OTHER ORGANIZATIONS TO, AGAIN, LET YOU KNOW -- AND I'M SURE YOU ALREADY DO, BUT TO RE-ENFORCE THE FACT THAT WE ARE ATTENTIVE TO THIS ALL THE TIME. WE UNDERSTAND THAT THERE'S A RETURN ON INVESTMENT FOR THE COMPETITIVE PAY THAT YOU ALL ALLOW US TO HAVE WHEN YOU GIVE US THE FUNDING TO TAKE CARE OF THAT. THE FACT THAT WE HAVE COMPREHENSIVE BENEFITS IS SOMETHING THAT NOT ONLY ALLOWS US TO COMPETE WITH OTHER ORGANIZATIONS, BOTH PRIVATE AND PUBLIC, BUT IT ALSO ALLOWS US TO RE-ENFORCE THE VALUE PLACED ON UNDERSTANDING THAT IT TAK EVERY ONE OF THE CITY OF PLANO EMPLOYEES THAT ARE HERE TO BE ABLE TO MAKE THIS ORGANIZATION RUN AS WELL AS IT DOES AND TO MAKE THIS CITY RUN AS EFFECTIVELY AS IT DOES. SO WE TALK A LOT ABOUT WHAT IS THE WHY? WHAT'S THE WHY FOR EVERYTHING THAT WE DO? WHAT IS THE CITY OF PLANO'S WHY? WHEN WE TALK ABOUT COMPENSATION AND WE TALK ABOUT BENEFITS, THAT WHY IS WHAT YOU SEE ON THE SCREEN. IT'S ABOUT HOW ARE WE STRUCTURING THIS TO MAKE SURE THAT WE CAN RECRUIT, WE CAN RETAIN, WE CAN HELP EMPLOYEES TO WANT TO STAY HERE. OUNEW HIRES WHEN WE TALK IN H NEW HIRE ORIENTATION TO HELP PEOPLE UNDERSTAND THAT WE UNDERSTAND THAT PEOPLE HAVE A CHOICE. THEY DON'T HAVE TO COME TO WORK FOR THE CITY OF PLANO. BUT MANY CHOOSE TO. WHAT WE FIND OVER A NUMBER OF YEARS AND CERTAINLY IN RECENT MONTHS IS THAT PROBABLY 86% OR SO OF THE PEOPLE THAT WE SEE COMING TO OUR ORGANIZATION AS NEW EMPLOYEES, SOME OF THEM ARE RETURN EMPLOYEES, AND I THINK THAT THAT SPEAKS WELL OF THE CITY. BUT MANY HAVE NEVER WORKED IN LOCAL GOVERNMENT. OUR CITY MANAGER COMES BY AND VISITS WITH THEM AND ASKS, WHERE ARE YOU COMIN FROM? HAVE YOU WORKED IN LOCAL GOVERNMENT BEFORE? SP BY AND LARGE, THEY NEVER HAVE. BUT PEOPLE HAVE A PERCEPTION THAT THERE IS SOME STABILITY IN LOCAL GOVERNMENT, THAT THERE ARE GROWTH OPPORTUNITIES, THAT THERE'S AN OPPORTUNITY TO SERVE. AND SO WHEN WE TALK ABOUT WHAT IS THE WHY, WE'RE TALKING ABOUT COMPENSATION AND BENEFITS. IT'S BECAUSE IT'S PART OF THE TOTAL PACKAGE. YES, WE WANT TO SERVE. YES, WE WANT TO BEER HOO -- BE HERE. WE WANT TO BE VALUED AND TREATED WELL AS EMPLOYEES. THE CITY WANTS TO DO THAT,ANTS TO PROVIDE THAT FOR ITS EMPLOYEES AND ALLOWS US TO HAVE THE ENVIRONMENT THAT YOU SEE REPRESENTED ON THE SCREEN HERE. WHEN WE TALK ABOUT THE CURRENT CLIMATE IN PLANO, I THINK IT'S IMPORTANT TO BRING US UP TO DATE BECAUSE WE'VE COME THROUGH SOME DIFFICULT YEARS VERY RECENTLY. WE'VE HAD A LOT OF CHANGE. WE'VE HAD A LOT OF TRANSITION. BUT THERE'S BEEN SOMETHING ABOUT THE FACT THAT THE CITY OF PLANO HAS PLANNED AND FUNCTIONED VERY WELL FOR MANY YEARS. AND SO IT'S HELPED US TO CONTINUE TO STAND IN THIS PARTICULAR CLIMATE. BUT TO GIVE YOU ANDEA OF KIND OF WHERE WE ARE, CITY EMPLOYEES ARE COLLABORATIVELY TRANSITIONING, WORKING TOGETHER, NOT JUST INTERNALLY BUT ALSO WITH SOME OF OUR EXTERNAL PARTNERS. THROUGH RECRUITMENT AND RETENTION SERVICE CHALLENGES WE'VE SEEN OVER THE LAST FOUR YEARS OR SO. YES, THERE HAVE BEEN CHALLENGES, SOME ARE CHALLENGES WE'VE NOT KNOWN OR EXPERIENCED BEFORE, BUT WE ARE CONTINUING TO DO WHAT WE HAVE ALWAYS DONE AND WORKING REALLY WELL TO BE ABLE TO MANAGE THAT TRANSITION. CUSTOMER SERVICE EXCELLENCE, CONSISTENT DELIVER OF QUALITY OF SERVICES, THAT'S OUR PRIORITY. THAT'S WHAT WE DO. THAT DOESN'T CHANGE. SO REGARDLESS OF WHAT'S GOING ON IN THE ENVIRONMENT AROUND US, WE ARE DELIVERING THE SERVICES TO THE CITIZENS IN PLANO AND CONTINUING TO DELIVER THEM REALLY WELL. NOT THAT IT'S NOT A CHALLENGE SOMETIMES AS WE DO THAT THROUGH TRANSITION, BUT WE CONTINUE TO DO IT REALLY WELL. STRATEGIC PLANNING IS A MAINSTAY WITHIN OUR DEPARTMENT. WE ARE ALSO THINKING ABOUT WHAT DOES THIS LOOK LIKE IN THE FUTURE? WHAT DO WE NEED TO BE THINKING ABOUT? JUST AS YOU ALL ARE DOING IN YOUR CAPACITY, WE ARE DOING THE SAME THING EVERY DAY. AGAIN, ON BEHALF OF ALL OF US, I WANT TO SAY TO YOU ALL THAT WE'RE THINKING ABOUT IT ALL THE TIME. AND SO BY THE TIME YOU TELL US ABOUT HEY, WE NEED YOU TO THINK ABOUT THIS, WE APPRECIATE IT AND WE ACCEPT IT AND WE ARE GOING TO MARCH RIGHT DOWN THAT ROAD, BUT WE WANT YOU TO KNOW THAT WE'RE ALREADY THINKING ABOUT IT, THAT WE'RE ALWAYS BE STRATEGIC, BECAUSE THAT IS WHAT WE'RE TRAINED TO DO. WE ARE NOT THE CITY OF EXCELLENCE JUST BECAUSE. WE'RE THE CITY OF EXCELLENCE BECAUSE OUR FOREFATHERS HAVE TAUGHT US HOW TO PLAN AND HOW TO BE SUCCESSFUL, AND WE'RE CONTINUING THAT. SO WE WANT YOU TO BE ASSURED THAT EVERY D WE' IN OUR SEATS IN THESE POSITIONS, THAT'S WHAT WE'RE DOING. AN AVERAGE OF 14 IN-PERSON CLASSES, 34 VIRTUAL CLASSES ARE OFFERED MONTHLY FOR EMPLOYEE DEVELOPMENT. WE DO AN AMAZING JOB OF INTERNAL TRAINING AND DEVELOPMENT, PERSONAL AND PROFESSIONAL DEVELOPMENT. THAT'S ONGOING ALL THE TIME. AND PEOPLE COME TO THE CLASSES, NOT JUST TO GET AWAY FROM THE JOBS, BUT TO COME AND LEARN SO THAT WE CAN GO BACK AND DO OUR JOBS EVEN BETTER. RECRUITMENT STRATEGIES CONTINUE TO EVOLVE THROUGH COLLABORATIONS WITH COMMUNICATIONS AND COMMUNITY OUEACH. WE'RE WORKING SO MUCH MORE WITH OUR COMMUNICATIONS DEPARTMENT BECAUSE WE WANT TO REALLY LEVERAGE THE EXPERTISE, TO BE ABLE TO KNOW HOW SHOULD WE GET THE WORD OUT THERE? YES, IT'S A CHALLENGING RECRUITMENT MARKET RIGHT NOW. SO HOW ARE WE -- ARE THERE OTHER OPPORTUNITIES THAT WE CAN USE? AND I'M REALLY HAPPY TO SAY THAT WE'VE HAD SOME SUCCESSFUL OUTCOMES IN WORKING WITH OUR COMMUNICATIONS DEPARTMENT AND HR, AND WE REALLY APPRECIATE THEM FOR THAT. MULTIPLE DEPARTMENTS ARE MANAGING A COMMUNITY INVESTMENT PROGRAM TO ENHANCE INFRASTRUCTURE, INTEGRITY, AND QUALITY OF LIFE IN OUR GANITION. YOU ALL HEARD ON MONDAY'S MEETING WHERE WE WERE TALKING ABOUT THE CIP PROGRAM. IT CONTINUES TO GROW SIGNIFICANTLY. AND SO WHEN WE TALK TO OUR PUBLIC WORKS DEPARTMENT, OUR PARKS AND RECREATION DEPARTMENT, OUR ENGINEERING DEPARTMENT, OUR FINANCE DEPARTMENT, OUR BUDGET DEPARTMENT, ALL OF THESE DEPARTMENTS ARE WORKING HARD TO CONTINUE TO MANAGE THE GROWTH. AND SOMETIMES IT'S NOT SO OBVIOUS THAT IT'S A CHALLENGE BECAUSE WE CONTINUE TO DO IT WELL. AND STAFF JUST PICKS UP AND DOES IT AND WE GET THE RESOURCES THAT WE NEED SOMEHOW. BUT IT CAN BE A CHALLENGE. BUT WE'RE REALLY HAPPY TO SAY THAT WE CONTINUE TO DO IT WELL. WE ACCEPT THE CHALLENGE. WE'RE GETTING IT DONE. WE MAKE THE ASK AND HOPEFULLY GET THE THINGS WE NEED TO MOVE FORWARD. BUDGET AND FINANCE DEPARTMENTS CONTINUE TO LEAD THE WAY FOR FINANCIALLY RESPONSIBLE DECISION-MAKING. WE'RE AAA BOND RATED, HAVE BEEN FOR SOMETIME. IT DOESN'T HAPPEN JUST BY CHANCE. I THINK IT'S REALLY IMPORTANT TO SAY THAT. WE WERE TALKING RECENTLY. WE HAVE COMMITTEES THAT OVERSEE OUR 115 TRUST WHICH TAKES A CLOSE LOOK AT OUR HEALTH PLAN MANAGE FOR BOTH CURRENT EMPLOYEES AND RETIREES. WE HAVE A STEERING COMMITTEE FOR DEFERRED COMPENSATION. WE HAVE ALL THESE THINGS IN PLACE. WE HAVE THE RETIREE SECURITY PLAN COMMITTEES. I SAY THIS BECAUSE IN ADDITION TO BUDGET AND FINANCE KEEPING US AAA BOND RATED AND GREAT CITY MANAGEMENT AND GREAT LEADERSHIP AT THE COUNCIL LEVEL, WE ARE TAKING VERY SERIOUSLY OUR FIDUCIARY RESPONSIBILITY AS STEWARDS OF FUNDING. AND ALL OTHE FINANCIAL RESPONSIBILITIES THAT ARE GIVEN TO US AND REALLY PROUD TO SAY THAT OUR 115 TRUST AND OUR RETIREMENT SECURITY PLAN ARE FULLY FUNDED. AND THERE ARE MANY -- IF YOU LOOK OUT OVER MANY MUNICIPALITIES AND PROBABLY MANY ORGANIZATIONS, WHEN YOU TALK ABOUT OPEB, OTHER POST EMPLOYMENT BENEFITS, NOT EVERY ORGANIZATION HAS PUT SYSTEMS IN PLACE TO HAVE A FINANCIAL PLAN TO TAKE CARE OF THOSE RETIREE BENEFITS. HAPPY TO LET YOU KNOW THAT THE CITY OF PLANO HAS DONE THAT AND NTINS TO WORK ONTHAT. PLANO CONTINUES TO ATTRACT RESIDENTIAL AND COMMERCIAL RESIDENTS. WE CONTINUE TO SEE THE GREAT WORK YOU ALL ARE SEEING ECONOMIC DEVELOPMENT AND THE THINGS THAT ARE COMING FORTH. WE'VE HAD GREAT THINGS IN PLACE FOR MANY YEARS, BUT WE'RE HAVING TO TRANSITION THE LANDSCAPE. THE ENVIRONMENT CONTINUES TO BE DIFFERENT. IT'S THIS MUNICIPAL STRUCTURE THAT WE HAVE THE NUMBER OF EMPLOYEES, THAT WE HAVE THE DEPARTMENTS AND HOW THEY'RE LAID OUT, THOSE JOB TITLES. JUST A REMINDER HERE THAT IT'S THESE DEPARTMENTS, THESE POSITIONS, THESE JOBS THAT GET IT DONE EVERY DAY. GET A LOT OF WORK DONE WITH THESE EMPLOYEES, WITH THESE NUMBERS. AND I THINK IT'S REALLY ABOUT THE PRINCIPLED DECISION-MAKING THAT WE UNDERTAKE EVERY DAY, WHETHER IT'S THE FIVE-ELEMENT FISCAL FRAMEWORK OUR CITY MANAGER PUTS BEFORE YOU AND US ALL THE TIME AND REMINDS US OF THE IMPORTANCE OF ADHERING TO THE FINANCIAL POLICIES AND PAYING ATTENTION TO OUR INFRASTRUCTURE, HOW DO WE MAINTAIN IT, TAKE CARE OF IT, HOW DO WE BUILD, TAKE CARE OF PEOPLE, BOTH EMPLOYEES AND CITIZENS? PROGRAMS AND SERVICES, AFFORDABILITY. WE ARE THINKING ABOUT THIS ALL THE TIME. I PUT THIS UP HERE TO SAY WHEN WE TALK ABOUT PRINCIPLE SDILGS MAKING, A LOT OF THIS IS BECAUSE WE HAVE THE PHILOSOPHY TO GUIDE US SO THERE'S ALWAYS SOMETHING TO GO BACK TO IN TERMS OF WHY DID WE MAKE THAT DECISION AND WHY ARE WE DISCUSSING THIS? I WANT YOU TO THINK ABOUT THE FACT WHEN WE'RE TALKING ABOUT INFRASTRUCTURE, MANY TIMES WE'RE TALKING ABOUT THE INFRASTRUCTURE OUT IN OUR COMMUNITY. BUT WE ALSO HAVE THAT POLICY-DRIVEN INFRASTRUCTURE INTERNALLY THAT DRIVES OUR DECISIONS AND ALLOWS US T MAKE PRINCIPLE DECISIONS THAT WE CAN ALWAYS COME BACK TO. A BIT OF RESEARCH IN WHAT IS BEING SAID -- AND THIS IS FROM AN ARTICLE FROM AMERICAN CITY AND COUNTY -- I WANT TO SAY WITHIN THE PAST 14 MONTHS. LOOKING AHEAD, GOVERNMENTS RANK THE OFFERING OF A COMPETITIVE COMPENSATION PACKAGE AS THEIR HIGHEST PRIORITY WITH AN ADDITIONAL 41% INDICATING AN INTENT TO PERFORM A JOB CLASSIFICATION STUDY. THIS IS WHAT'S BEING SAID OUT IN THE COMMUNITY IN THE INDUSTRY ACROSS OUR NATION. AGAIN, I WANT YOU TO KNOW THAT WE'RE DOING THIS AND HAVE BEEN DOING THIS FOR SOMETIME. SO WE CONTINUE TO LOOK AT BENEFITS AND COMPENSATION AND TRY TO UPDATE ON A REGULAR BASIS. THERE ARE BENEFITS TO DOING THAT. THE CITY OF PLANO HAS A HISTORY OF BEING VERY INTENTIONAL ABOUT HOW IT MAKES DECISIONS SO IT REFLECTS AN OUTCOME-DRIVEN TYPE OF PRACTICE. THE STEWARDSHIP THAT WE HAVE, WE PRACTICE THAT EVERY DAY. AND SO WHAT ARE SOME OF THE BENEFITS OF THAT? WE HAVE THE ANNUAL COMPENSATION REVIEW TO BENCHMARK, IDENTIFY POSITIONS. WE MAY NOT ALWAYS GO OUT AND DO A FULL-BLOWN -- BAUSE THAT'S NOT NECESSARY TO DO ON AN ANNUAL BASIS BUT MAYBE EVERY TWO TO FOUR YEARS. EVERY YEAR WE'RE WORKING WITH OTHERS TO BENCHMARK HOW ARE WE DOING IN TERMS OF COMPENSATION AND BENEFITS? IT'S AN ONGOING REVIEW. CURRENTLY CONDUCTING AN ASSESSMENT OF THE CITY'S COMPENSATION PHILOSOPHY, POLICIES, AND PRACTICES. WE'RE UNDERTAKING THIS INITIATIVE. AND I KNOW YOU'VE HEARD ABOUT IT. WE'VE TALKED ABOUT IT THROUGHOUT THIS BUDGET PROCESS. HERE WE ARE IN 2023. OUR POLICIES, OUR COMPENSATION R A VERY LONG TIME.ORKED FOR US BUT SHOULD THEY BE SOMETHING DIFFERENT NOW? WE DON'T KNOW. WE'LL TAKE A LOOK AND SEE. WE'VE ALREADY BEGUN THIS PROCESS. IT'S PART OF OUR DUE DILIGENCE, STRATEGIC THINKING, OUR BEING DISCIPLINED IN HOW WE MAKE DECISIONS. SO THAT WILL BE FORTHCOMING OVER THE NEXT PROBABLY THREE TO FOUR MONTHS. WE'RE PARTNERING TO IMPROVE MESSAGING REGARDING TOTAL COMPENSATION. ONE THING WHEN WE TALK ABOUT ACCOUNTABILITY, IT'S NOT JUST FROM THE PERSPECTIVE OF THE CITY OF PLANO BEING RESPONSIBLE TO US ASMPLOYEES BUT ALSO HOW ARE WE MANAGING THAT INFORMATION? SO WHEN WE TALK ABOUT TOTAL COMPENSATION, IT'S ABOUT SO MUCH MORE THAN WHAT DOES THAT OFFER AND WHAT DO I GET PAID JUST IN PAY? WE'RE NOT SAYING THAT THAT'S NOT IMPORTANT. WE'RE SAYING THAT THERE'S MORE TO THE STORY. SO WE LOOK AT TOTAL COMPENSATION. WE'LL BE WORKING WITH COMMUNICATIONS TO, AGAIN, TALK ABOUT HOW DO WE CRAFT MESSAGING AROUND HELPING ALL OF US AS EMPLOYEES TO TRULY UNDERSTAND WHAT OUR TOTAL COMPENSATION IS. WE USE ANNUAL TOTAL COMPENSATION STATEMENTS, BUT WE NEED TO TALK ABOUT IT A LITTLE MORE. WE ARE FORTUNATE TO HAVE A LOT OF BENEFITS. WE WANT PEOPLE TO UNDERSTAND WHAT THEY ARE AND HOW TO ACCESS THEM AND NAVIGATE THAT PROCESS. WE'RE REGULARLY COLLECTING AND ANALYZING COMPENSATION AND HEALTH DATA, AS I SAID BEFORE. FOCUSING ON EMPLOYEE COMMUNICATION ENGAGEMENT COMMUNICATION WITH EMPLOYEES, HAVING THEM TO COME IN AND BE OPEN ABOUT ASKING FOR INFORMATION WHEN THEY WANT TO DO THAT. PRIORITIZING PHYSICAL AND EMOTIONAL WELLNESS THROUGH OUR EDUCATION PROGRAMS AND INCENTIVES. THERE'S A COUPLE SLIDES GOING FORWARD. IT'S IMPORTANT WE REALLY ADDRESS THE TOTAL PERSON AS PUBLIC SERVANTS. BALANCING COST AND FINANCIAL RISKS TO THE CITY. THIS IS TO JUST RE-ENFORCE TO YOU THAT IT'S NOT JUST ABOUT US TRYING TO GIVE, GIVE, GIVE-AND-TAKE EVERYTHING IN TERMS OF RESOURCES THAT WE CAN AND DISTRIBUTE BACK TO EMPLOYEES. IT'S LOOKING AT THE MARKET, HOW IS IT THAT WE SHOW VALUE TO EMPLOYEES AND REMAIN COMPETITIVE AS AN EMPLOYER, BUT HOW DO WE MANAGE THAT? HOW DO WE MAKE SURE THAT WE ARE ANALYZING THE FINANCIAL RISKS FOR THE ORGANIZATION? WHAT SHOULD WE DO? WHEN SHOULD WE DO IT? SO AGAIN, WE'RE BEING VERY DISCIPLINED IN OUR APPROACH. PARTNERING WITH TECHNOLOGY SOLUTIONS TO MAXIMIE EFFICIENCY THROUGH APPROPRIATE TECHNOLOGY. WE WANT TO BE MEASURED IN HOW WE USE TECHNOLOGY TO MAKE SURE WE'RE BEING MORE EFFICIENT, EFFECTIVE, AND BEING GOOD STEWARDS OF OUR PROCESSES. WHEN WE GO OUT AND DO THE MARKET STUDIES, JUST WANT TO GIVE YOU A GLPSE OF IS. I THINK I SHARED LAST YEAR ABOUT WHAT OUR COMPARATORS ARE. HOW DO WE COMPARE AND WHO DO WE LOOK AT WHEN WE COMPARE COMPENSATION AND LOOK AT BENEFITS? THESE ARE THOSE COMPARATOR CITIES. CIVIL SERVICE FIRE AND POLICE LOOK DIFFERENT THAN THE PUBLIC COMMUNICATIONS PAY PLAN. THAT'S BECAUSE WE ENGAGE WITH POLICE AND FIRE TO MAKE SURE THAT WE'RE GETTING THEIR INPUT AS WELL ON SPECIFICS ABOUT HOW OTHER DEPARTMENTS ARE RUNNING, HOW THEY LOOK AS COMPARED TO US AND HOW WELL WE ALIGN. AND SO WE'RE VERY MUCH ENGAGED WITH THEM. NOW, FOR ALL OF THE NONCIVIL SERVICE PEOPLE LISTENING NOW AND THINKING LASHON, WHY DON'T WE GET TO DO THAT? WE ARE TAKING IN INFORMATION ALL THE TIME TO MAKE SURE WE'RE COMPARING APPROPRIATELY. OUR CITY MANAGER HAS GIVEN US THE GO AHEAD RECENTLY THAT WE'RE REALLY GOING TO PUT THIS ON A TIMELINE OF ABOUT EVERY TEN YEARS TO MAKE SURE THAT WE ARE GOING IN AND ENSURING THAT WE ARE STILL COMPARING APPROPRIATELY. THAT IS ALSO WHAT WE'RE TALKING ABOUT WITH OUR COMPENSATION PHILOSOPHY. WE WILL BEGIN THAT NEXT YEAR TO MAKE SURE THAT WE STILL HAVE WHAT WE NEED. WHEN WE TALK ABOUT THE LANDSCAPE OF EMPLOYMENT COSTS, WHAT IS IT REALLY COSTING EMPLOYERS IN THE CITY OF PLANO? IF YOU LOOK AT INFORMATION ABOUT WHAT WE THINK IS HAPPENING IN SOME OF OUR COMPARATOR CITIES, IT LOOKS LIKE THERE WILL BE PAY INCREASES SOMEWHERE BETWEEN 3% AND 6%. THAT'S WHAT'S BEING PROJECTED TO US. WHEN WE LOOK AT BENEFIT COSTS OF EMPLOYEE PREMIUM COMPARISONS, IT LOOKS LIKE THERE'S ANYWHERE FROM ABOUT $30 PER MONTH TO $146 PER MONTH IN TERMS OFMPLOE PREMIUM IN OUR COMPARATOR CITIES, AND PLANO IS INCLUDED IN THAT. THE HIGHEST PORTIONS OF TOTAL COMPENSATION -- AND THIS IS THROUGH THE BUREAU OF LABOR STATISTICS FOR EMPLOYERS. IT IS 6.9% ON HEALTH INSURANCE, A RISING COST THAT CONTINUES TO RISE. SOCIAL SECURITY AND MEDICARE, THE CITY OF PLANO DOES NOT PARTICIPATE IN SOCIAL SECURITY, BUT ABOUT 6%. AND VACATION TIME BEING USED. ABOUT 3.8%. WHEN WE TALK ABOUT HOW WE SHARE TOTAL COMPENSATION AND HOW WE COMPARE TO OTHER CITIES, ONE OF THE THINGS THAT WE WANT TO DO A BETTER JOB ABOUT SHARING WITH POTENTIAL EMPLOYEES IS THAT WE DON'T PARTICIPATE. THE CITY OF PLANO DOES NOT PARTICIPATE IN SOCIAL SECURITY. SO THAT IS NOT A CONTRIBUTION THAT WILL COME OUT OF EMPLOYEES' PAYCHECKS. HOWEVER, THE CITY OF PLANO DOES PROVIDE THE RETIREMENT SECURITY PLAN AT NO COST TO EMPLOYEES. SO WE HAVE TO BE ABLE TO TELL THESE STORIES A LITTLE BETTER. BECAUSE I MIGHT GO RUNNING SOMEPLACE ELSE GOING, GOSH, I GOT AN 8% PAY INCREASE. THAT'S GREAT. NOT THAT IT'S NOT GREAT, BUT IF THAT ORGANIZATION PARTICIPATES LILE SHOCKED WHEN I GET MY BE A FIRST PAYCHECK IF I HAVEN'T ASKED ALL THE QUESTIONS. SO WE ARE WORKING TO DO BETTER WITH THAT. WE HAVE PUT SOME INFORMATION ON OUR MANAGER RESOURCE SITE WHERE EMPLOYEES CAN GO IN AND WORK WITH PEOPLE THAT THEY'RE MAKING JOB OFFERS TO AND SCALE OUT SOME OF THESE THINGS. WE WANT TO DO IT A BIT BETTER. EMPLOYERS ARE CONTINUING TO INVEST IN COMPENSATION TO COMBAT PROLONGED TIGHT LABOR MARKETS WITH MORE PRUDENCE THAN WHAT WA. THIS IS A STATISTIC FROM MERCER. I INCLUDED THIS FOR YOU ALL BEC WE'RE BEING PRUDENT, AND I FEEL LIKE WE ALWAYS ARE AT THE CITY OF PLANO. JUST WANTED TO SAY THAT WE WERE ALREADY, I THINK, BEING VERY PRUDENT. NOT TO SAY THAT OUR NEIGHBORS WERE NOT, BUT WE DID NOT HAVE AS SUBSTANTIAL A JUMP TO GET THERE BECAUSE WE ALREADY HAD PROCESSES AND PATTERNS IN PLACE AS WE ENTERED INTO THIS TIGHTER JOB MARKET. SO INVEST IN AREAS THAT BOOST EMPLOYEE RECRUITMENT AND RETENTION. THIS IS WHAT THE RESEARCH SAYS AND WHAT PLANO IS DOING. COMPENSATION AND BENEFITS, CHECK, WE'RE DOING THAT. PROFESSIONAL DEVELOPMENT AND SUCCESSION PLANNING, WE'RE GOING BACK AND LOOKING AT SUCCESSION PLANNING INITIATIVES AND LOOK FORWARD TO DOING A LOT MORE WITH THAT IN THE COMING MONTHS IN FIRST QUARTER OF 2024. AND LEADERSHIP DEVELOPMENT. WE HAVE TO HAVE LEADERS. WE HAVE TO HAVE PEOPLE WHO UNDERSTAND HOW TO MAKE THIS ALL WORK AND SUPPORT PEOPLE IN DOING THAT. WE RECENTLY WORKED WITH A CROSS-SECTION OF EMPLOYEES, DID FOCUS GROUPS AND A LOT OF RESEARCH. THEY TOLD US, THIS WHAT WE NEED AS SUPERVISORS. WE NEED TO HAVE THIS INFORMATION UP FRONT. WE DON'T WANT TO LEARN THIS BY TRIAL AND ERROR. SO WE HAVE DONE A LOT OF WORK IN THAT AREA, AND IT'S GOING REALLY WELL, AND WE WILL CONTINUE TO DO THAT TO MAKE SURE THAT WE ARE EQUIPPING AND SUPPORTING EMPLOYEES TO DO THE JOBS THAT WE ARE HERE TO DO. AGAIN, PLANO VALUES THE WHOLE PERSON, AND WE PRACTICE THIS EVERY DAY. JOB SATISFACTION IS NOT JUST ABOUT THE COMPENSATION. IT'S NOT TO SAY THAT COMPENSATION IS NOT IMPORTANT. IT IS. BUT IT'S NOT JUST THE COMPENSATION. I WAS LOOKING AT SOME STATISTICS RECENTLY THAT TALKED ABOUT THE FACT THAT EMPLOYEES ARE LEAVING LOCAL GOVERNMENT, SPECIFICALLY, BECAUSE -- I TAKE THAT BACK. I THINK IT WAS PUBLIC SECTOR, WHICH WOULD INCLUDE LOCAL GOVERNMENT -- FOR THESE REASONS. BECAUSE OF WORK/LIFE BALANCE, BECAUSE OF MORALE, AND BECAUSE OF COMPENSATION. AND I AM A BELIEVER THAT YES, WE MAY GO AND WE MAY GET MORE COMPENSATION SOMETIMES, BUT SOMETIMES THAT'S NOT THE PRIMARY REASON THAT WE START TO LOOK. SO WE KEEP ALL OF THESE THINGS IN MIND AND WANT TO MAKE SURE WE'RE TAKING CARE OF THE WHOLE PERSON IN ALL OF THESE WAYS THAT ARE SHOWN ON THE SLIDE RIGHT NOW. SO HOW HAS PLANO MAINTAINED ITS COMPETITIVE ADVANTAGE? IT DOES ALL OF THESE THINGS I'VE TALKED TO YOU ABOUT. COMMITMENT TO REGULAR REVIEW AND MANAGEMENT OF THE PLANS, THE CULTURE WE CREATE, HOW WE VALUE EMPLOYEES, ENGAGE EMPLOYEES. WE DO THE KINDS OF THINGS WE'RE DOING NOW, ENGAGING WITH YOU, OUR DECISIONMAKERS, AND HAVING A CONVERSATION ABOUT WHAT'S IMPORTANT AND HOW DO WE GET TO THE GOALS THAT WE'RE LOOKING FOR? THE BUDGET ALLOCATIONS TT SUPPORT EMPLOYEE RECRUITMENT, RETENTION, AND DEVELOPMENT, ARE IN PLACE IN PLANO, ONE OF THE WAYS WE KEEP COMPETITIVE ADVANTAGE. ATTENTIVENESS TO ORGANIZATIONAL CULTURE THAT DEFINES AND RE-ENFORCES IT AS A DELIVERABLE TO OUR COMMUNITY. THE DEDICATION OF RESOURCES THAT EQUIPS AND SUPPORTS EMPLOYEES WITH WHAT THEY NEED TO DO, WHICH IS WHAT WE APPRECIATE ABOUT OUR COUNCIL AND CITY MANAGEMENT AND THAT YOU ALL GIVE US THE THINGS WE NEED TO GET OUR JOBS DONE. SERVICE DEMANDS, ACCOUNTABILITY, ENVIRONMENT, ALL OF THESE THINGS ARE VERY IMPORTANT TO US BEING ABLE TO GET THE JOBS DONE. AS I'M COMIN UP TO COMPLETING THIS DISCUSSION WITH YOU, I WANTED TO GIVE YOU PERSPECTIVE ALSO ON SOME OF THE CHALLENGES OF HEALTHCARE. SO MANY THAT WE CAN'T REALLY CONTROL FOR. BUT WE LOOK FOR THOSE, AND WE SPENT A LOT OF TIME IN MEETINGS WITH OUR HEALTH PLAN CONSULTANTS AND OUR BUDGET AND FINANCE DEPARTMENTS AND HR LOOKING FOR WAYS TO ACCOMPLISH THIS. ONE OF THE THINGS, WHEN WE TALK ABOUT OUR HEALTHCARE PHILOSOPHY, HEALTH PLAN PHILOSOPHY, WE THINK IT'S IMPORTANT THAT WE NOT JUST PROVIDE HEALTHCARE BUT THAT IT'S ACCESSLE, THAT IS AFFORDABLE, THAT IT'S COMPREHENSIVE, THAT IT IS TRULY A BENEFIT. SO IT'S NOT JUST ABOUT THE NUMBERS. WE COULD MAKE IT JUST ABOUT THE NUMBERS, AND WE CAN BALANCE THEM ANY WAY THAT WE NEED TO. BUT IT'S ABOUT THE NUMBERS AND THE COSTS AND THE HEALTHCARE ENVIRONMENT THAT HAS A LOT OF THINGS THAT WE CAN'T CONTROL FOR. THEN IT'S ALSO ABOUT HOW DOES THIS HELP THE QUALITY OF LIFE FOR EMPLOYEES AND RETIREES AND THEIR FAMILIES? SO JUST A LOOK AT THIS, IF YOU LOOK AT 2018 THROUGH 2023, YOU CAN SEE -- NOW, IFOU START CALCULATING THESE NUMBERS, YOU MIGHT SAY IT DOESN'T ADD UP TO THE TOTAL HEALTH COST. NO, IT DOESN'T BECAUSE MANY TIMES IT EXCEEDED WHAT THE CONTRIBUTIONS WERE FROM THE EMPLOYEES AND FROM THE EMPLOYER. THIS ALSO DOES NOT INCLUDE OUR RETIREE POPULATION. HOWEVER, IT GIVES YOU A GLIMPSE INTO THE COST PATTERNS FOR HEALTHCARE AND HOW EXPENSIVE IT IS AND HOW IT CONTINUES TO GROW. AND IT'S A VERY COMPREHENSIVE TASK OF LOOKING AT NUMBERS AND UNDERSTANDING PATTERNS AND LOOKING AT TRENDS. AND WE'RE DOING THIS ALL THE TIME. AGAIN, I WANT TO ASSURE YOU THAT THESE ARE REALLY BIG NUMBERS, BUT WE ALSO HAVE ALL OF THOSE EMPLOYEES THAT I SHOWED YOU ON THE SLIDE BEFORE AND RETIREES TO TAKE CARE OF. AND THIS IS THE COST OF HEALTHCARE, AND IT'S A VERY IMPORTANT PART OF OUR BENEFITS PACKAGE. BUT THESE ARE THE NUMBERS THAT WE'RE LOOKING AT. I ALSO PUT THIS IN THIS WAY BECAUSE I WANT OUR EMPLOYEES AS WELL TO UNDERSTAND THAT, YES, WE TALK ABOUTAVIN TO RAISE CONTRIBUTIONS. NOT EVERY YEAR. BUT WE'VE TALKED ABOUT IT THE LAST COUPLE YEARS. WHEN WE LOOK AT THE TOTAL COST AND LOOK AT WHAT'S BEING ASKED OF US AS PARTICIPANTS IN THE PLAN, I THINK IT'S A FAIR TRADE HERE. SO THESE ARE THE NUMBERS. THIS IS WHAT IT'S LOOKING LIKE FOR OUR HEALTHCARE COSTS RIGHT NOW. WE ARE ALSO SEEING OVER THE PAST TWO TO THREE YEARS THAT OUR LARGE CLAIMANTS ARE GROWING. SO WHEN WE LOOK ATHOSE CLAIMS THAT ARE 50,000, 125,000 OR MORE, THEY'RE GROWING. AND SO A LOT OF THAT ACCOUNTS FOR WHERE WE ARE NOW. WE'RE ALSO CONTINUING TO TAKE STEPS TO FIGURE OUT WAYS TO DESIGN OUR PLANS SO THAT WE CAN MANAGE THAT. WHEN YOU LOOK AT THIS CHART THAT'S ON THE SCREEN HERE, WE ARE TALKING ABOUT, AS WE DID LAST YEAR -- AND IT WAS ABOUT A $4 INCREASE FOR EMPLOYEES LAST YEAR, WE ARE TALKING ABOUT AN INCREASE THIS YEAR AS WELL PROJECTED. WE ARE ASKING TO INCREASE AT. IF YOU LOO AT THE MONTHLY AMOUNT FOR THE EMPLOYEES, FROM $62 TO $71.30. ENDS UP BEING JUST OVER $9 A MONTH. THE EMPLOYER AMOUNT IS INCREASING AS WELL. AND THE EMPLOYER AMOUNT ALSO INCREASED LAST YEAR. AND SO YES, SOME OF THESE ARE -- UH-OH. DID I -- >> NO, WE'RE JUST SAYING WHAT A VALUE. >> YES, IT IS A VALUE. AND AGAI ONE OF THE THINGS THAT I RECALL US DOING MANY YEARS AGO, WE TALKED -- THE CITY TALKED ABOUT HOW ARE WE SUBSIDIZING? HOW ARE WE SHARING IN THE COSTS WITH EMPLOYEES AND DEPENDENTS? AT THAT TIME, MANY YEARS AGO, EVERYONE WAS GETTING THE SAME KIND OF SHARE. WE HAD A PHILOSOPHICAL CONVERSATION ABOUT WHO IS OUR PRIMARY? WHO IS THE CITY'S PRIMARY RESPONSIBILITY? AND IT WAS DETERMINED AT THAT TIME THAT IT'S THE EMPLOYEE. THAT'S WHO WE HAVE THE EMPLOYMENT ARRANGEMENT WITH. DOESN'T MEANHAT THE CITY ISN'T GOING TO ALSO TRY AND HELP TAKE CARE OF THAT EMPLOYEE'S FAMILY BECAUSE THAT'S A QUALITY OF LIFE ISSUE, A MORALE ISSUE THAT WE TALKED ABOUT BEFORE. BUT WE HAVE TO FIND THAT WAY TO MAKE IT WORK IN TERMS OF THE COST SHARE. SO YOU WILL SEE THAT THERE'S A 90/10 SPLIT FOR EMPLOYEES AND THE CITY AND A 75/25 FOR DEPENDENTS. THE HEALTH PLAN OUTLOOK FOR 2024 AND BEYOND, WE'RE LOOKING AT PLAN DESIGN CHANGES FOR NEXT YEAR. WE LOOK FOR WAYS TO NOT JUST TRY AND CREATE ADDITIONAL CONTRIBUTIONS JUST THROUGH PREMIUMS. WE LOOK AT UTILIZATION. WE LOOK AT TRENDS. WE LOOK AT THE OPPORTUNITY TO CONTRACT WITH DIFFERENT ORGANIZATIONS. AND SO WE'VE HAD A SUCCESSFUL YEAR WORKING WITH OUR CONSULTANT, OUR HEALTH PLAN CONSULTANT, BROWN & BROWN, WHO IS HELPING US TO GO OUT AND MAKE THOSE CONNECTIONS. SO WE'LL BE TALKING ABOUT SOME OF THOSE CHANGES GOING FORWARD. WE WANT TO GIVE MORE OPTIONS FOR THE USERS OF THE PLAN SO THAT I USE MORE HEALTHCARE, MAYBE I CAN ACCESS IN A DIFFERENT WAY. IF I HAVE OTHER OPTIONS. AND STILL HAVE LESS OUT-OF-POCKET COSTS. WE'VE ALREADY TALKED ABOUT THE INCREASES. TO INCREASE THE MAXIMUM OUT OF POCKET FROM 6,600 TO 7,000, WITH NO MAXIMUM TO THE CITY, I'M MAKING THAT POINT BECAUSE WE COULD GO TO AN IRS MAXIMUM OUT OF POCKET, WHICH WAS, I THINK, FOR 2024, WOULD BE, LIKE, 9,300 -- >> 9,400. >> YEAH, 9,400. WE TALKED ABOUT THAT. WHILE IT COULD MAKE SENSE THAT WE DO THAT, AND IT'S STILL SUBSTANTIALLY SMALLER THAN WHAT A CLAIM WOULD BE, IT WAS DETERMINED WE'RE NOT GOING TO GO THERE IN THAT MANNER FOR NOW. FOR ANYBODY WHO IS LISTENING, IF YOU'RE THINKING I SAID SHE SAID NOT NOW SO NOT NEXT YEAR. THAT'S NOT WHAT I SAID. I'M SAYING IT'S SOMETHING WE CONSIDER IN TERMS OF PLAN DESIGN. IT'S NOT JUST ABOUT COST SHIFTING. IT'S ABOUT WHAT MAKES SENSE. HOW DO WE MAKEURE THAT WE RETAIN THE INTEGRITY OF A PLAN THAT ALLOWS ACCESS FOR ALL OF US? WE CONTINUE TO LOOK AT HOW MUCH OF AN EMPLOYEE'S SALARY IS REQUIRED? WHAT PERCENTAGE IS THE HEALTHCARE OF A SALARY? WE'RE NEVER ABOUT 5% FOR THE EMPLOYEE. THAT'S IMPORTANT TO US. WE DON'T TAKE THESE DECISIONS LIGHTLY. BUT WE WILL BE CHANGING THE INCREASE OF THE ANNUAL MAX MULL OUT OF POCKET FROM 6,600 TO 7,000. I PUT THAT. I THINK IT'S SO IMPORTANT TO REALLY TALK ABOUT THAT CAVEAT OF THE NO MIMUM FOR THE CITY THAT WHILE, YES, IT'S PROJECTED TO BE RAISED FOR US AS USERS OF THE PLAN TO $7,000, MY ANNUAL OUT-OF-POCKET MAXIMUM THEN IS MAXED AT 7,000. I'M NOT GOING TO PAY ANYTHING ELSE FOR THE REST OF THE YEAR. THE CITY, ON THE OTHER HAND, THE HEALTH FUND, THERE IS NO MAXIMUM. SO AGAIN, I THINK THAT IS KIND OF A FAIR TRADE. EXPAND IMAGING BENEFITS. WE'RE LOOKING AT CONTRACTING WITH A COMPANY THAT WILL ALLOW US TO GO IN AND HAVE CERTAIN IMAGING BENEFITS. IF WE USE THESE PARTICULAR PROVIDERS, THERE WILL BE NO OUT-OF-POCKET COSTS FOR EMPLOYEES. THAT MEANS WE'LL NEED TO EDUCATE A LITTLE MORE. WE AS CONSUMERS NEED TO MAKE SURE WE UNDERSTAND THE PLAN TO WE KNOW HOW TO USE IT TO OUR BENEFIT TO GET THE CARE WE NEED AND MINIMIZE OUT-OF-POCKET COSTS. PEOPLE CAN STILL CHOOSE TO USE IT AS IT EXISTS, BUT THERE WILL BE AN OPTION TO ALSO USE THESE IMAGING ORGANIZATIONS AND PROVIDERS AND HAVE NO OUT OF POCKET AS A PARTICIPANT IN E PLAN. EXPAND BENEFITS OF SURGERY AND CANCER CARE THAT OFFERS BUNDLED COMPETITIVE PRICING. THESE ARE THINGS WE THINK COULD BE VERY BENEFICIAL TO THE PARTICIPANTS IN OUR PLAN. WE'RE INCREASING DENTAL PREMIUMS APPROXIMATELY $2 A MONTH. I THINK IT'S CLOSER TO ONE. BUT NOT MORE THAN $2. THIS WILL ALSO INCREASE THE ANNUAL BENEFIT, THE ANNUAL DENTAL BENEFIT FROM $2500 PER YEAR TO $3,000 PER YEAR. INCREASEHE ANNUAL VISION BENEFIT FROM FRAMES AND CONTACT LENSES FROM 150 TO 180. THE VISION IS COMPLETELY VOLUNTARY, SO PEOPLE WILL USE THAT IF THEY LIKE. WE'RE COMPLETING PLANNING AND NEGOTIATIONS WITH ONE OF OUR LOCAL HOSPITALS TO HAVE -- IT'S CALLED A NARROW NETWORK. AND HOPEFULLY IF WE CAN GET THAT DONE, THAT'S GOING TO BE A SIGNIFICANT PLAN DESIGN CHANGE, AND I THINK PEOPLE WHO USE THIS FACILITY ALREADY WILL BE PLEASED WHEN WE GET THE EDUCATION OUT. CONTINUING TO ENHANCE THE WELLNESS PROGRAM AND CONTINUING TO DO THAT. I WANT YOU TO KNOW THAT THE SAME THINGS WE'RE DOING WITH THE CITY AS AN ORGANIZATION, THE MULTIROAD PROJECT, WE WANT TO FOLLOW THAT AS WELL WITH OUR HEALTH PLAN AND OUR COMPENSATION MANAGEMENT. WE LOOK AT OUR SERVE VALUES, AND WE LOOK AT THE PLANS WE HAVE IN PLACE, THE PHILOSOPHIES WE HAVE IN PLACE, THE MULTIYEAR FISCAL ROADMAP. WANT TO JUST ASSURE YOU THAT THIS LEVEL OF DISCIPLINED DECISION-MAKING IS BEING DONE AT ALL LEVELS IN OUR ORGANIZATION. IF YOU COULD VISIT ANY ONE OF OUR DEPARTMENTS ON ANY GIVEN DAY REGARDING ANY PROJECT THAT'S HAPPENING, THIS IS THE LEVEL OF DISCIPLINED DECISION-MAKING THAT'S HAPPENING ALL THE TIME. THIS IS THE KIND OF STRATEGIC DISCUSSION HAPPENING ALL THE TIME. WE JUST WANT YOU TO BE ASSURED OF THAT. AND THIS IS WHY. PLANO'S PLANO. IT'S WHY WE'RE THE CITY OF EXCELLENCE. THIS STATEMENT AT THE BOTTOM IS FROM JIM COLLINS. ONE OF HIS WRITINGS. AND I'VE REFERRED TO IT FOR MANY YEARS, AND I THINK ABOUT PLANO WHEN I SEE THIS. COMPANIES THAT ENJOY ENDURING SUCCESS HAVE CORE VALUES AND A CORE PURPOSE THAT REMAIN FIXED WHILE BUSINESS STRATEGIES AND PRACTICES ENDLESSLY ADAPT TO A CHANGING WORLD. THERE HAVE BEEN THINGS OVER THE LAST FEW YEARS. WE'VE SEEN A LOT OF ORGANIZATIONS HAVING TO REALLY RAMP UP AND DO A LOT OF THINGS DIFFERENTLY, AND WE'VE NOT DONE THAT. WE'VE NOT HAD TO DO THAT. HAVE WE HAD TO PAY ATTENTION? ABSOLUTELY WE HAVE. HAVE WE HAD TO DO THINGS MAYBE A LITTLE DIFFERENTLY? ABSOLUTELY. WILL WE HAVE TO GOING FORWARD? PROBABLY SO. BUT WE'VE NOT HAD TO MAKE WHOLESALE CHANGES BECAUSE WE HAVE BEEN MAKING DISCIPLINED DECISIONS ALL THE TIME. NOT SAYING THAT OTHER PEOPLE HAVE NOT. SAYING, THOUGH, THAT WE DO ALL THE TIME. AND SO THAT'S OUR HEALTH PLAN. THAT'S WHAT WE DO EVERY DAY.. IF YOU HAVE ANY QUESTIONS, I'M HAPPY TO ANSWER THEM >> Mayor Muns: THANK YOU. ANY QUESTIONS OR STATEMENTS FROM THE COUNCIL TO LASHON? LASHON, THAT WAS A FANTASTIC PRESENTATION >> THANK YOU. >> Mayor Muns: I THINK I CAN SPEAK FOR THE ENTIRE COUNCIL. WE REALIZE THAT THE EMPLOYEES MAKE THIS A CITY OF EXCELLENCE. AND WE'RE VERY PROUD TO BE A PART OF THAT IN SUCH A SMALL WAY. BUT WE WANT ALL OF YOU TO KNOW AND ALL OF OUR EMPLOYEES TO KNOW HOW IMPORTANT THEY ARE TO US AND TO THIS COMMUNITY. >> THANK YOU SO MUCH. >> Mayor Muns: THANK YOU. OUR NEXT ITEM IS THE ADDITIONAL SCHOOL RESOURCE OFFICERS REGARDING HB 3. HELLO, CHIEF. >> HELLO, MAYOR, COUNCIL. I THINK I MUST HAVE MADE KAREN ANGRY TO HAVE ME FOLLOWING LASHON. [ LAUGHTER ] THAT'S REALLY TOUGH. I'M HERE TO TALK ABOUT HOUSE BI. IT IS SECURITY FOR THE SCHOOLS. YOU PROBABLY KNOW NEITHER ONE OF OUR SCHOOL DISTRICTS ARE ASKING FOR SROs, SO THE PURPOSE FOR MY MEETING IS TO LET YOU KNOW WHAT OUR SCHOOL DISTRICTS ARE DOING AND HOW WE DO OUR OPERATIONS ON THE STREET. SO WE WILL START WITH TALKING ABOUT EXACTLY WHAT HOUSE BILL 3 REQUIRED. THE LEGISLATURE'S CLEAR INTENT OR PREFERENCE ANYWAY WAS TO PUT A SWORN OFFICER, A POLICE OFFICER OR DEPUTY ON EACH CAMPUS. SO NEITHER ONE OF OUR SCHOOL DISTRICTS WAS INTERESTED IN STARTING THEIR OWN POLICE DEPARTMENT. THEIR PREFERENCE WAS TO USE SCHOOL RESOURCE OFFICERS. ANOTHER OPTION THEY COULD HAVE DONE WAS TO HAVE OFF-DUTY OFFICERS WORK IN AN OFF-DUTY EMPLOYMENT ROLE LIKE WE DO ACROSS THE CITIES MANY TIMES. SRO PROGRAM BEING THE PREFERRED OPTION, TWO PROBLEMS WITH THAT. NUMBER ONE IS MONEY. AND I HAVE A SLIDE THAT WILL TALK ABOUT THE COST OF THAT HERE IN A MINUTE. THE OTHER TWO IS STAFFING. IN THE CASE OF MY SCHOOLSAVIN TO COME UP WITH ABOUT 40 HOURS -- AGAIN, I'LL SHOW YOU THAT -- THAT'S ABOUT 10% OF MY WORKFORCE. WE'RE DOING VERY WELL ON HIRING RIGHT NOW. I HAVE 417 POSITIONS. I'M STAFFED AT 413. I'M DOWN LESS THAN 1%, AND I'VE GOT NINE JOB OFFERS OUT. SO WE'RE DOING PRETTY GOOD ON STAFFING. TO INCREASE MY STAFFING TO 40 WOULD TAKE ABOUT THREE YEARS TO BE ABLE TO DO THAT IS WHAT I PROJECT. FOR SOME OF YOU WHO SERVED ON THE PREVIOUS COUNCIL THAT AUTHORIZED THE OVERHIRES, THOSE ARE A BIG HELP. SOME SAY IF YOU'RE DOWN BELOW 417, THE OVERHIRES DON'T HELP YOU. THAT'S NOT TRUE. I CAN CONTINUE TO GIVE JOB OFFERS UNTIL I HIT THE 428, THE 11 POSITIONS I NOW HAVE. I WOULD NOT BE ABLE TO GIVE OUT THOSE JOB OFFERS UNLESS YOU GIVE ME THE AUTHORIZATION TO DO THE OVERHIRE. SO IT HELPS EVEN THOUGH I'M BELOW THE 417. THIS NEXT SLIDE, SO MOST OF THE SCHOO DISTRICTS AND POLICE DEPARTMENTS ARE IN A SIMILAR BOAT. THEY CAN'T HIRE ENOUGH OFFICERS TO GET THIS STARTED IN A TIMELY MANNER. SO THE LEGISLATURE ALLOWED FOR AN ALTERNATE STANDARD. DISTRICTS CAN CLAIM WHAT'S CALLED A GOOD CAUSE EXEMPTION. THAT'S WHAT EVERY SCHOOL DISTRICT I KNOW IS DOING. THAT GAVE THEM THE OPTION OF HIRING A SCHOOL MARSHAL PROGRAM OR SCHOOL GUARDIAN PROGRAM OR THEY COULD GO WITH ARMED PRIVATE SECURITY. WHAT WE SEE IN OUR COUNTY AND SURROUNDING AREAS ARE THAT MOST ARE GOING WITH EITHER A SCHOOL MARSHAL PROGRAM OR SECURITY GUARD OPTION IS WHAT WE ARE SEEING. AND OUR SCHOOLS SPLIT THAT DIFFERENCE AS WELL SO IF WE WERE, THOUGH, TO PUT AN SRO AT ALL OF OUR SCHOOLS, THAT WOULD MEAN AN ADDITIONAL 41 SROs. WE WOULD HAVE TO ADD ADDITIONAL SUPERVISORS, FOUR SERGEANTS, TWO LIEUTENANTS AND ADDITIONAL VEHICLES AS WELL. IN OUR CITY, COVER DOWN ON 38 PISD SCHOOLS, FOUR FRISCO, ONE ELEMENTARY SRO THAT SERVES AS A ROVER BETWEEN THOSE SCHOOLS. WE'D NEED TO HIRE AN ADDITIONAL THREE. 41 CAMPUSES, 41 ADDITIONAL OFFICERS WE WOULD NEED TO HIRE. THIS $12.6 MILLION COST WOULD BE THE TOTAL COST OF OUR SRO PROGRAM IF WE BROUGHT ON THE 41 ADDITIONAL OFFICERS. THE ADDITIONAL COST FOR PISD FOR THEIR SHARE OF THOSE OFFICERS WOULD BE RIGHT AT ABOUT $8 MILLION. AND THEN FOR FRISCO ISD, 4 OR $4.5 MILLION. EXACT COST VARIES BECAUSE WE INVOICE THE SCHOOLS ON THE EXACT CHARGES THAT WE PAY. TENURED OFFICERS MAKE MORE THAN JUNIOR OFFICERS. THAT WOULD BRING OUR TOTAL SRO PROGRAM UP TO 67 SROs. SO PISD ELECTED TO GO WITH THE SCHOOL MARSHAL PROGRAM AND WHAT THAT PROGRAM CONSISTS OF, YOU CAN SEE THERE HAS TO BE A SCHOOL DISTRICT EMPLOYEE, HAS TO HAVE A TEXAS LICENSE TO CARRY, AN L-3, A PSYCHOLOGICAL ASSESSMENT AND 80 HOURS OF TRAINING AND ADDITIONAL 16 HOURS O TRAINING EVERY YEAR. SO BOTH THE CITY MANAGER AND I, THE DEPUTY CITY MANAGER, WE'VE MET WITH PISD. IN MY OPINION, THIS IS THE BEST ROUTE TO GO SINCE WE CAN'T PUT SROs ON THEIR CAMPUS. I'M VERY, VERY COMFORTABLE FOR WHAT THEY'RE DOING. THEY HAVE THEIR JOB ANNOUNCEMENT ON THE STREET. MY RECOMMENDATION WAS THAT THEY TRY TO GET AS MANY RETIRED POLICE OFFICERS AS THEY CAN TO DO THIS. BUT I DON'T KNOW IF THE MARKET IS GOING TO BE ABLE TO SUPPORT THAT. A LOT OF IT WILL HAVE TO DO WITH THE PAY THAT THEY OFFER TSE GUYS. BUT THAT'S THE PROGRAM THEY'RE GOING WITH. I DID INFORM THE SUPERINTENDENT THAT TO THE EXTENT WE CAN, WE WILL ASSIST THEM WITH MAKING SURE THEIR OFFICERS ARE QUALIFIED EVERY YEAR AND FOR SURE WE WANT TO INTEGRATE THEM INTO OUR ACTIVE SHOOTER/ACTIVE THREAT TRAINING THAT WE DO EVERY YEAR. AND ALSO THE DIFFERENCE BETWEEN THE SCHOOL MARSHAL PROGRAM AND SCHOOL GUARDIAN PROGRAM THAT YOU SAW ON THE PREVIOUS SLIDE, SCHOOL MARSHALS AND SCHOOL GUARDIANS HAVE TO WORK FOR THE SCHOOL DISTRICT. SCHOOL GUARDIANS ONLY RECEIVE 16 HOURS OF TRAINING AND SCHOOL ARDIS TYPICALLY HAVE OTHER DUTIES. I WORKED OUT OF WEST TEXAS. THEY HAVE A LOT OF GUARDIAN PROGRAMS OUT THERE. USUALLY A COACH OR PRINCIPAL OR SOMEBODY AND THEY HAVE OTHER DUTIES. THEY HAVE A LICENSE OF CARRY. THE SCHOOL MARSHALS ARE TYPICALLY DEDICATED TO JUST PROVIDING THE SECURITY. THE SCHOOL MARSHAL PROGRAM IS RUN BY THE TEXAS COMMISSION ON LAW ENFORCEMENT, WHICH ALSO RUNS OUR SWORN -- OUR PROGRAM FOR COMMISSION-SWORN OFFICERS IN THE STATE AS WELL. VERSUS THE GUARDIAN PROGRAM, T CURRICULUM IS DESIGNED BY TEXAS DPS OR STATE POLICE, AND THEY PROVIDE THAT TO COMMERCIAL SERVICE PROVIDERS WHO TRAIN THE GUARDIANS. FRISCO'S PLAN IS TO USE A PRIVATE SECURITY FORM, LEVEL THREE PRIVATE SECURITY, MEANING THEY CAN CARRY A FIREARM. PLANO ISD WAS NOT COMFORTABLE WTH THAT. HOWEVER, I AM COMFORTABLE WITH WHAT FRISCO IS DOING BECAUSE THEY'RE GOING TO CONTINUE THE SRO ROVER PROGRAM. WHAT THAT INVOLVES IS AS I SAID, WE HAVE FOUR FRISCO SCHOOLS IN THECITY, ONELANO POLICE OFFICER WHO GOES -- THAT'S HIS FULL-TIME JOB, TO BE AT ONE OF THOSE SCHOOLS THROUGHOUT THE SCHOOL DAY. THEY'RE GOING TO CONTINUE TO DO THAT, EVEN THOUGH THEY'VE THESE PRIVATE SECURITY OFFICERS ON CAMPUS. THE OTHER THING WE INTEND TO CONTINUE TO DO IS SOMETHING WE IMPLEMENTED LAST YEAR, CALLED IT OUR COMMUNITY SECURITY PLAN FOR OUR SCHOOLS. IS AT OUR PISD ELEMENTARY SCHOOLS, WE HAVE EITHER THE BEAT PATROL OFFICER OR A NEIGHBORHOOD POLICE OFFICER VISIT EACH ONE OF THOSE SCHOOLS TWICE A DAY, ONCE TO DO AN EXTERIOR CHECK, ONCE TO DO AN INTERIOR CHECK. WE WILL CONTINUE THAT AT LEAST IN THE IMMEDIATE FUTURE. DO YOU HAVE ANY QUESTIONS? >> Mayor Muns: ANY QUESTIONS FOR CHIEF? COUNCILMEMBER WILLIAMS? >> Williams: YES, CHIEF. THANK YOU. YOU NOTED THAT THE OVERHIRES HELP. WITH THAT HELP US PROVIDE FLEXIBILITY FOR PISD, ADDITIONAL OVERHIRES? UNDERSTANDING THE CHALLENGES THEY'RE GOING TO HAVE TO FILL ALL OF THESE AND THE CHALLENGES WE WOULD HAVE AS WELL IF WE HAVE ADDITIONAL FLEXIBILITY THROUGH MORE OVERHIRES AS THEY TRY TO RAMP UP STAFFING FOR PISD AT THE ELEMENTARY SCHOOLS >> EVEN IF WE WERE IN THE OVERHIRE TERRITORY, BETWEEN 417 AND 428, WE WOULDN'T -- >> Williams: I MEAN ANY ADDITIONAL OVERHIRES BEYOND 428. >> NO. I MEAN, THE PRIMARY REASON I NEEDED THE OVERHIRES IS BECAUSE OF OUR LONG TRAINING PIPELINE. I HAVE 10, 11 NOW THAT I CAN HIRE. TYPICALLY I HAVE 25 TO 45 OFFICERS IN THAT TRAINING PIPELINE. THAT TEN HELPS A LOT, OBVIOUSLY. IT ALLOWS ME TO GIVE OUT THE JOB OFFERS SO I'M READY TO GO IN OCTOBER WHEN WE HAVE OUR NEXT ACADEMY. BUT I'VE STILL GOT VACANT POSITIONS WITHIN THE POLICE DEPARTMENT WITH NO NAME ON IT. WHERE ARE THOSE PEOPLE AT? THEY'RE IN TRAINING BECAUSE THEY'RE TRAINING FOR -- >> Williams: A LONG TRAINING CYCLE. >> EXACTLY. WE WOULDN'T BE ABLE TO ASSIST PISD WITH THAT. ONE OF THE THINGS THE MARSHAL PROGRAM WILL GIVE FLEXIBILITY, WE'RE NEEDING 38 -- PISD NEEDS TO COVER 38 CAMPUSES. IF YOU SAW THE PRESS RELEASE, IT SAID THEY'RE HIRING FOR 50. THEY HAVE SCHOOLS IN MURPHY, RICHARDSON, IN ALLEN, AND IN DALLAS. ONE OF THE THINGS THE SUPERINTENDENT ASKED IS SHE'S HAVING ISSUES IN ONE OF HER CITIES. SHE SAID CHIEF, CAN YOU PROVIDE -- NO, I CAN'T WORK OUTSIDE MY JURISDICTION. HAVING THOSE MARSHALS WILL TAKE THAT PROBLEM OFF THE HANDS. SHE CAN PUT THE MARSHALS WHEREVER SHE NEEDS TO. WE SPLIT THE COST 50/50. PISD's COST WOULD BE ABOUT 8 MILLION. THAT'S JUST FOR THE 38 IN PLANO. SHE'S GOT TO COVER THE OTHER CAMPUSES AS WELL. AS YOU MAY HAVE SEEN, I THINK IT'S ABOUT 4.1 FOR THEM TO COVER DOWN ON THESE 50 OFFICERS. IT WOULD HAVE BEEN ALMOST THAT MUCH FOR US TO DO JUST THE SCHOOLS THAT THEY HAVE IN PLANO. AND THAT DOESN'T COUNT THE OTHER CITIES. >> Williams: OKAY, THANK YOU. >> MM-HMM. >> Mayor Muns: THANK YOU, CHIEF. >> ALL RIGHT. >> Mayor Muns: APPRECIATE IT. NEXT ITEM IS COMMUNITY INVESTMENT PROGRAM. KAREN? >> OUR COMMUNITY INVESTMENT PROGRAM TOTALS $340 MILLION. THE OTHER NIGHT WE HAD A SERIES OF DEPARTMENT HEADS THAT RUN THE CIP COME AND GO THROUGH ALL THE DIFFERENT PROJECTS. UNLESS YOU HAVE ANY QUESTIONS FROM THE OTHER NIGHT? >> Mayor Muns: I DON'T THINK SO. >> OKAY. >> Mayor Muns: I THINK THAT WAS VERY COMPREHENSIVE. >> VERY COMPREHENSIVE. THEN WE CAN GET ONTO THE QUESTION OF THE PROPOSED AD VALOREM TAX RATE. >> Mayor Muns: OKAY. >> MAYOR AND COUNCIL, WE HAD DIRECTION FROM COUNCIL THAT THE MAXIMUM THE TAX RATE WOULD BE IS THE CURRENT TAX RATE, WHICH IS .4176. WE HAD THIS DISCUSSION ABOUT THE VOTER APPROVED RATE WITHOUT INCREMENT COMING FORWARD, WHICH WAS .4060. SO THOSE WERE THE TWO NUMBERS THAT WE USED. IN THAT TIME, WE HAD TALKED A LITTLE BIT ABOUT BRINGING BACK SOME ADDITIONAL INFORMATION, AND I SENT THAT TO YOU TODAY, AND I APOLOGIZE AGAIN ABOUT THE LATENESS OF THIS. PART OF THAT WAS THE SALARY COMPARISONS, AND SO I DID SUPPLY COUNCIL WITH SOME OF THAT SURVEY DATA FROM OTHER AREA CITIES SHOWING WHAT COMPENSATION ADJUSTMENTS LOOK LIKE, NOT ONLY FOR THIS YEAR BUT ALSO FOR LAST YEAR. AND IT DOES LOOK LIKE THAT 3% IS FALLING SHORT OF WHERE THE OTHER AREA CITIES ARE. MARK'S CHARACTERIZATION IS THAT PLANO WAS HEAD AND SHOULDERS ABOVE OTHER CITIES FOR MANY, MANYYEARS, AND TY HAVE BEEN AGGRESSIVE ABOUT CATCHING UP TO PLANO. AND A LOT OF THEM HAVE. AND SO IN ORDER TO MAKE SURE THAT WE DON'T START FALLING BEHIND IN A MEANINGFUL WAY, IT LOOKS LIKE THE NEED WOULD BE APPROXIMATELY 4.5% AT THIS POINT TO BE ABLE TO KEEP UP. AND THAT WOULD ALSO PRESERVE SOME OF THOSE FUNDS FOR THAT COMPENSATION PHILOSOPHY PLAN TO COME IN AND ALSO START TAKING MEANINGFUL STEPS TOWARDS THAT THIS YEAR AS WELL. ADDITIONALLY, I DID SHARE WITH WHAT CHIEF DRAIN JUST SHARED, PISD, TO FUND THE SCHOOL MARSHAL PROGRAM, IT'S ABOUT $4 MILLION. THE STATE FUNDING THAT THEY'VE SUPPLIED TO COVER THAT PROGRAM IS NOT GOING TO COVER THE 4 MILLION. THEY'RE GETTING A MILLION FROM THE STATE, SO THEY HAVE A $3 MILLION HOLD. THEY HAVE SHARED WITH US THAT OUR PARTNERSHIP IS MEANINGFUL FO THEM AND IF THERE'S ANYTHING THE CITY CAN DO IT WOULD BE APPRECIATED. THEY UNDERSTAND WE'RE IN A TOUGH BUDGET CYCLE AS WELL. SO THOSE TWO ITEMS A OBVIOUSLY FOR COUNCIL TO BE ABLE TO CONSIDER. AND SO WITH THAT, I'D BE HAPPY TO ANSWER QUESTIONS AND HEAR DIRECTION FROM WHERE >> Mayor Muns: SO AS NORMAL FOR ITEMS THAT ARE REALLY IMPORTANT, I WANT EVERYBODY TO BE ABLE TO HAVE AN OPPORTUNITY TO SPEAK. I'M JUST GOING TO GO AROUND THE DAIS AND LET EVERYBODY KIND OF GIVE THEIR THOUGHTS AND WHERE THEY'D LIKE TO SEE THE -- THE TAX RATE. SO IF AT ALL POSSIBLE, I'M GOING TO LET COUNCILMEMBER RICCIARDELLI START. >> Ricciardelli: OKAY, THK YOU, MAYOR, I APPRECIATE THE OPPORTUNITY TO TALK ABOUT THIS. SO I'VE BEEN WRESTLING WITH THIS, BECAUSE THIS IS A DIFFICULT BUDGET, MORE DIFFICULT THAN SOME THAT WE'VE HAD IN THE PAST FEW YEAR, OBVIOUSLY FAIRNESS TO EMPLOYEES AND STAYING COMPETITIVE REGARDING COMPENSATION IS CRITICALLY IMPORTANT, SO IS FAIRNESS TO RESIDENTS AND BUSINESSES WHO ARE TAXPAYERS REGARDING TAXES, THE BUDGET IS A BALANCING ACT AND THIS YEAR THAT BALANCING ACT IS ESPECIALLY DIFFICULT. I WANT TO FIRST SAY THAT I'VE BEEN LOOKING INTO THE NUMBERS. YOU KNOW, REGARDING WHAT OTHER CITIES ARE DOING, AND WHAT WE NEED TO DO TO REMAIN COMPETITIVE IN THE EMPLOYMENT MARKETPLACE, AND I AGREE WITH THE CITY MANAGER, I SUPPORT THE 4.5 PERCENT ACROSS THE BOARD RAISE. I THINK THAT TO REMAIN AS COMPETITIVE AS WE'VE BEEN IN THE EMPLOYMENT MARKET, WE HAVE TO DO THAT, YOU KNOW, THE NUMBERS -- THE NUMBERS BEAR THAT OUT, AND WHEN YOU CALL 911, IT HAS TO BE THE BEST OF THE BEST WHO ARE IF WE WANT A VIBRANT CITY, WE HAVE TO HAVE THE BEST OF THE BEST PLANNERS, YOU KNOW, IF WE WANT OUR TRASH TO BE PICKED UP AND NOT PILE UP OUT BACK, WE HAVE TO BE ABLE TO HIRE QUALIFIED DRIVERS FOR WASTE COLLECTION VEHICLES WHO HAVE A CDL. SO WE'RE GOING TO HAVE TO REMAIN COMPETITIVE IN THE EMPLOYMENT MARKETPLACE, SO I SUPPORT THAT RECOMMENDATION FROM THE CITY MANAGER. AT THE SAME TIME, WE HAVE TO LOOK AT AFFORDABILITY FOR OUR RESIDENTS AND BUSINESSES WHO PAY TAXES. I HAVE PUT A LOT OF TIME, AND I APPRECIAT THAT KAREN ANDER TEAM, KAYCI, WHO IS HERE, HAVE PUT A LOT OF TIME INTO ANSWERING MY QUESTIONS REGARDING AFFORDABILITY. AT A TAX RATE OF 41.76%, KEEPING THE SAME TAX RATE AS LAST YEAR, THE AVERAGE PLANO HOMEOWNER WHO HAS A HOMESTEAD EXEMPTION BUT NO OTHER EXEMPTIONS WOULD SEE AN INCREASE IN THEIR TAX BILL OF 10.2%, WHICH IS ACCORDING TO THE SPREADSHEET I'VE GOT HERE IS THE MOST -- OR T HIGHEST INCREASE IN 20 YEARS THAT ARE ON THIS CHART. 20 YEARS FROM FISCAL YEAR 2003-2004 TO THE PRESENT. THERE'S NO OTHER YEAR THAT HAS THAT CHANGE OF 10.2% NEXT TO IT. AND WHEN YOU TAKE INTO ACCOUNT ON TOP OF THAT THE CHANGE THAT HAS TO BE MADE IN THE SOLID WASTE RATE, THE INCREASE IN THE WATER RATES, WHICH OBVIOUSLY HAVE GOTTEN BETTER SINCE WE FIRST SAW THEM, WHICH IS GOOD NEWS, INEASE,UR RESIDENTS AND BUSINESSES ARE GOING TO BE FEELING A SQUEEZE, SO, YOU KNOW, I THINK THAT WE HAVE TO -- WE HAVE TO BE VERY CAREFUL ABOUT TAXATION. WE'VE BEEN TALKING ABOUT GOING ABOVE THE VOTER APPROVAL RATE OF -- OR THE ONE YEAR, YOU KNOW, WHAT WOULD BE THE ONE YEAR WITHOUT, YOU KNOW, ROLLOVER INCREMENT VOTAL APPROVAL RATE OF 40.60, AND AT THAT ONE YEAR VOTER APPROVAL RATE, OUR BUDGET WAS ALREADY GOING TO GROW 7%, AND OBVIOUSLY IF WE HAVE MORE REVENUE, THAT PERCENTAGE WILL BE HIGHER. THE STAFF VERY NICELY PREPARED ANALYSIS GOING BACK 20 YEARS, AND THAT CAME OUT OF AN EXCHANGE THAT CITY MANAGER ISRAELSON AND I HAD WHERE, YOU KNOW, WE'RE TALKING ABOUT A LOOK BACK ESSENTIALLY, USING THE ROLLOVER INCREMENT FROM THE PAST THREE YEARS, AND I SAID, WELL, THAT'S NOT THE WHOLE PICTURE BECAUSE THINGS WERE GROWIN A LOT FASTER BEFORE THE LAST FEW YEARS IN TERMS OF TAXATION AND THE LAST FEWEARS WE'VEUT THE BRAKES ON THAT A BIT, SO THERE'S A CIRCLE, SO I WANTED TO SEE THE PAST TEN YEARS TO PROVIDE CONTEXT. CITY MANAGER ISRAELSON POINTED OUT, WELL, IF YOU ONLY GET THE LAST TEN YEARS, YOU'RE MISSING WHAT HAPPENED WHEN THE CITY LOST A LOT OF GROUND DURING THE GREAT RECESSION WHICH IS A GREAT POINT THAT THE CITY MANAGER MADE, SO THE ANALYSIS WENT BACK 20 YEARS. AND AS WE ALSO KNOW, I THINK IT'S '06 '07, THE CITY ADOPTED A PROPERTY TAX INCREASE TO PAY FOR THE INCENTIVE DEVELOPMENT FUND, NOT REALLY APPLES TO APPLES, I STARTED THE YEAR OF THAT, '07-'08 AND RANSOM NUMBERS, YOU KNOW I THINK WE'RE DOING A LOT BETTER THAN OTHER CITIES, BUT YOU WILL STILL SEE THAT IF MY NUMBERS ARE CORRECT, AND AGAIN I JUST USED THE CALCULATOR ON MY COMPUTER, BUT I'M SURE THESE ARE IN THE BALLPARK, AND I THINK THEY'RE CORRECT. 62.2 -- SORRY, 62.6% GROWTH IN THE AVERAGE TAX BILL FOR THE ARAGE HOMEOWNER WITH A HOMESTEAD EXEMPTION, BUT NO OTHER EXEMPTIONS, CPI INFLATION FROM JULY 2007 TO JULY 2023, I DID JULY BECAUSE JULY 2023 IS THE LAST MONTH THAT THERE'S DATA FOR IS 46.8%, WHICH IS LESS THAN THAT, SO EVEN WITH THE ACTIONS WE'VE TAKEN OVER THE LAST FEW YEARS, IF YOU LOOK AT THAT, YOU KNOW, 16, 17 YEAR PERIOD, THE AVERAGE HOMEOWNER IS STILL SEEING GROWTH OF THE DOLLAR AMOUNT OF THEIR TAX BILL THAT EXCEEDS INFLATION AND -- AND THEN, U KNOW, AND PART OF THAT, BY THE WAY, IS THAT WE HAVE AN INCREASING NUMBER OF EXEMPTIONS OBVIOUSLY THE MORE SENIOR TAX FREEZES AND OTHER THINGS THAT WE HAVE, THAT PUSHES THE TAX BURDEN ON TO PEOPLE WHO ARE NOT SENIORS, WHO DON'T HAVE THAT FREEZE AND SO THERE'S A LOT GOING ON THERE. I THINK THE -- YOU KNOW, WE HAVE A CITY THAT'S A GREAT VALUE, AND I WANT TO MAKE IT CLEAR I'M NOT SUGGESTING OTHERWISE, BUT ALSO IF YOU LOOK AT GENERAL FUND GROWTH AND COMBINED BUDGET GROWTH NET OF PAYMENTS TO NORTH TEXAS MUNICIPAL WATER DISTRICT OVER THAT PERIOD, THEY N PLUS POPULATION GROWTH EVEN WITH OUR ACTIONS OVER THE LAST FEW YEARS, ALL OF THAT IS TO SAY WE ARE IN A POSITION WHERE WE HAVE TO -- WE HAVE TO DO WHAT WE HAVE TO DO TO ATTRACT AND RETAIN GREAT EMPLOYEES, BECAUSE THE CITY IS A SERVICE ORGANIZATION AND OUR RESIDENTS NEED GREAT SERVICES. AT THE SAME TIME WE NEED TO DELIVER AFFORDABILITY TO OUR RESIDENTS, I'M NOT COMFORTABLE WITH THE 10.2% INCREASE YEAR OVER YEAR WHICH AGAIN WOULD BE THE HIGHEST IN THE LAST 20 YES, TUGH IT ALL BEARS MENTIONING THAT LAST YEAR THAT CHANGE WAS ONLY .4%, AND, YOU KNOW, THE CPI INFLATION WAS 8.5%, WHEN YOU THROW POPULATION GROWTH IN, YOU KNOW, THAT WAS -- THAT WAS 1 1.3% AS WELL. I'D LIKE TO LOOK AT ALTERNATIVES THE DO THE 3.5%, TO BE AS CLOSE TO THE 40 THAT WE CAN BE. I'M A MBER, YOU KNOW, AT THE TOM MUEHLENBECK CENTER, IT'S A GREAT PLACE TO WORK OUT, WHEN I GET THE TIME TO DO THAT, AND I'M NOT LOOKING AT NUMBERS THAT KAREN AND HER TEAM HAVE PREPARED, AND THANK YOU AGAIN FOR THAT, BUT, YOU KNOW, I'D LIKE TO LOOK AT US GETTING CLOSER TO COST RECOVERY, YOU KNOW, MAYBE NOT 100% COST RECOVERY RIGHT NOW, BUT CLOSER TO COST RECOVERY ON SOME OF THESE THINGS, OTHER THINGS THAT WE CAN CHANGE IN THE BUDGET SO THAT IT'S NOT SO HEAVILY ON PROPERTY TAXES, BECAUSE RESIDENTS ARE GOING TO BE HIT HARD THIS NEXT YEAR IF WE DON'T DO SOMETHING ABOUT THAT. ANOTHERDEA I HAVE, WE'VE GOT A GREAT NEW POLICY TO CAP THE TRANSFER TO THE ECONOMIC DEVELOPMENT INCENTIVE FUND AT $10 MILLION. LAST YEAR IT WITH US 10.3, SO IF WE WERE TO RETROACTIVELY APPLY THAT POLICY, THAT WOULD RESULT IN A $300,000 TRANSFER FROM THE ECONOMIC DEVELOPMENT INCENTIVE FUND TO THE GENERAL FUND, AND IN FACT WE REALLY RETROACTIVELY APPLIED THE POLICY WHICH SAYS, YOU KNOW, CPI INFLATION, SUCH THAT IT WOULD BE TO BE 10 MILLION THIS YEAR, IT WOULD ACTUALLY BE ABOUT 9.7 MILLION LAST YEAR, AND INFLATION WOULD HAVE TAKEN IT UP TO 10 MILLION, I WE KE IT TO 9.7 MILLION, THAT WOULD BE A $600,000 TRANSFER -- >> Mayor Muns: WE'RE TALKING ABOUT TAX RATE, AND WE CAN -- >> Ricciardelli: SURE, SURE. >> Mayor Muns: WE CAN LET THE CITY MANAGER WORK ON SOLUTIONS WHATEVER THAT TAX RATE IS. >> Ricciardelli: ABSOLUTELY. I WILL WRAP THAT UP QUICKLY. I WOULD BE IN FAVOR OF DOING THAT WITH THE ECONOMIC DEVELOPMENT INCENTIVE FUND, I'LL LET THE CITY MANAGER COME UP WITH BETTER IDEAS PROBABLY THAN THE ONES I'M PRESENTING. WE'VE EVE GOT THE DARK FUNDS, WE DIDN'T BUDGET THEM, I THINK WE COULD GO EVEN LOWER ON THE CONTRITIONO THE CAPITAL MAINTENANCE FUND THIS YEAR, BECAUSE THERE ARE GOING TO BE PROJECTS IN THERE THAT COULD BE ELIGIBLE FOR DART FUNDING, I UNDERSTAND THAT IS NOT GUARANTEED, THAT'S WHY WE DIDN'T PUT IT IN THE BUDGET, BUT I THINK IF WE LOOK AT ONE, THINGS THAT ARE ELIGIBLE FOR DART FUNDING, AND TWO, PROJECTS THAT NEED TO BE DONE IN THE NEXT FEW YEAR, BUT NOT ABSOLUTE EMERGENCY WE DO IT THIS YEAR, WE CAN TAKE THOSE OUT OF THE BUDGET AND SAY THOSE ARE GOING TO BE DONE WITH THE DART FUNDS, WHICH IS HIGHLY LIKELY WE'LL GET BUT WE'RE NOT COUNTING ON THEM. MAYBE THERE ARE BETTER IDEAS THAT THE CITY MANAGER HAS, I'M IN FAVOR OF THE 4.5% RAISE, AND, YOU KNOW, I'D LIKE TO BE AT 40.60 FOR THE TAX RATE OR DO DOWN TRYING AND GET ABSOLUTELY AS CLOSE AS WE CAN. >> Mayor Muns: ALL RIGHT, THANK YOU. >> Ricciardelli: THANK YOU. >> Mayor Muns: COUNCILMEMBER HORNE? >> HORNE: THIS IS WHY THEY VOTED US TO TAKE THIS JOB, AND THIS IS MY FIRST GO AT THIS, SO PLEASE BE PATIENT. THOUGH I'D LIKE TO SEE THE -- PERSONALLY LIKE TO SEE THE STAY AT THE 40.60, I DON'T KNOW IF THAT'S REASONABLE, BECAUSE OUR MOST -- WE LOOK AT THIS AS A CORPORATION, THE REASON THE CITY -- PLANO IS THE CITY OF EXCELLENCE IS THE PEOPLE, AND, YOU KNOW, WE LOST GOOD PEOPLE TO OUR COUSINS TO THE NORTH, BECAUSE WE'VE TRAINED THEM, THEY'RE EXPERIENCED, AND THEY SAW OPPORTUNITIES WHERE THEY CAN GROW. AND VICE VERSA, THERE ARE PEOPLE WANTING TO COME TO PLANO, BECAUSE IT IS THE CITY OF EXCELNCE. THAT'S OUR -- THAT'S THE ONE THING WE HAVE. AND ANYBODY FROM THE MAINTENANCE SHED ALL THE WAY TO OUR DEPUTIES TO OUR CHIEFS, TO OUR CITY MANAGERS, IT'S THE WHOLE GAMUT THAT'S WHO WE'RE REPRESENTING HERE. SO I THINK OUR TOTAL COMPENSATION PACKAGE THAT WE LOOKED AT, THAT LASHAUN WAS PRESENTING TO US, MS. ROSS WAS PRESENTING TO US, IT'S ONE OF THE BEST I'VE EVER SEEN. WE WERE SITTING HERE LAHINGBOUT THE INSURANCE OKAY? BUT THAT ALL BEING SAID, THOUGH, IT COMES AT A COST. IT DOES. AND YOU KNOW, IF WE STAY AT .4060, WE STILL HAVE TO REDUCE OUR BUDGET BY, WHAT, 6.2 MILLION? WAS THAT CORRECT?>> WE WERE REDE BUDGET BY 6.2 MILLION TO GET TO THE 4060, AND THEN WE WOULD HAVE TO COME UP WITH A DIFFERENTIAL FOR ANOTHER ONE AND A HALF PERCENT IF IT'S AT 4% *6. >> HORNE: EXACTLY. I WAS HOPING THAT THAT WOULD HELP COVER THIS INCREASE IN THE COST OF OUR STAFF OF EVERYONE THAT WE HAVE HERE, AND STILL KEEP THE SERVICES THAT WE HAVE. I MEAN, WE CAN GO THROUGH LINE ITEMS ON A CAPITAL IMPROVEMENT FUND, THAT'S ALL BONDING, AND OF COURSE DEBTS AND WE ARE PAYING OFF THE DEBTS, BUT I'M JUST TALKING ABOUT OUR GENERAL FUNDS THAT WE HAVE TO MAINTAIN TO KEEP THE STAFF THAT WE WANT, YOU KNOW. THIS IS WHERE I'M HAVING THE STRUGGLE, AND, YOU KNOW, THOUGH HATE TO SEE AN INCREASE IN THE PROPERTY RATES, I THINK THAT ITS SOMETHING, IF WE'RE GOING TO HAVE TO COVER THE COST OF LABOR, AND KEEP QUALITY PEOPLE HERE AND PROVIDE THE GREAT SERVICE WE HAVE, WE SHOULD BE LEANING TOWARD THE .4176 PROPOSED TAX RATE. I THINK THAT'S WHERE WE HAVE TO GO IN MY OPINION. >> Mayor Muns: THANK YOU. MAYOR PRO TEM? > >> Prince: SO I HAVE A COUPLE OF QUESTIONS, IT'S 5 MILLIONOR EVERY 1% -- >> ACROSS ALL FUNDS, YES. >> Prince: ALL RIGHT. TO GET TO 4.5%, YOU'RE GOING TO NEED AN ADDITIONAL 3 AND A HALF? >> IT'S ABOUT 3.3. >> UH-HUH. >> KAREN IS SHAKING HER HEAD SO THAT IS A YES. >> Prince: 3.3. SO IN THE BUDGET THAT YOU PROPOSED, YOU HAVE 3%? >> CORRECT. >> Prince: ALL RIGHT. SO IF WE WANTED TO GET DOWN, WE WOULD HAVE TO BUT ALSO HAVE 4.5%, WE WOULD HAVE TO CUT OUT 6.2 MILLION PLUS FIND ANOTHER 3.3 MILLION. SO WE'RE LOOKING AT CLOSE TO 10? OKAY. DO YOU SEE A WAY TO DO THAT? >> I -- I WILL SHARE THAT YOU WILL FEEL IT. AS A COMMUNITY. SO THERE -- OVER THE LAST SEVERAL YEARS, GOING TO THE NO NEW REVENUE RATE, CANDIDLY, THERE'S NO POTS OF MONEY, THERE'S NO SECRET MONEY, IT'S ALL OUT THERE, Y'ALL SEE IT. AND THE AREAS THAT IT WILL BE TAKEN FROM WILL BE THINGS THAT AFFECT INFRASTRUCTURE, AFFECT PROGRAMS AND SERVICES. IT WILL -- IT WILL SHOW UP SOME PLACE, SO IF COUNCIL GIVES ME THE DIRECTION OF MARK, WE'RE GOING TO HAVE, YOU KNOW, THE ONE YEAR VOTER APPROVED RATE, THE 4060, AND WE WANT YOU TO GO FIND THE ADDITIONAL $3.3 MILLION, I WILL BRING YOU BACK A BUDGET THAT HAS THAT IN THERE. YOU KNOW, I C ABSOLUTELY THAT. BUT IF IT COMES FROM INFRASTRUCTURE PROJECTS, AND WE'RE DELAYED IN FILLING A POT HOLE OR WE'RE DELAYED IN PREPARING AN ALLEY, A ROAD, WHATEVER THAT MIGHT BE, IT WILL BE MORE EXPENSIVE WHEN WE COME BACK AND DO THAT TWO YEARS FROM THEN AND WE WILL HAVE THAT IMPACT. SO WE CAN ABSOLUTELY GO DO THAT, BUT WE'RE AT THAT POINT WHERE WE'RE GOING TO FEEL IT. WE'RE GOING TO FEEL IT IN THE INFRASTRUCTURE PROJECTS. WE'RE GOING TO FEEL IT IN THE PROGRAMS AND SERVICES, WE'RE JUST AT THAT POINT IN OUR LIFE CYCLE AND IN OUR ECONOMICS AT THIS POINT. SO ABSOLUTELY THERE ARE PATHS TO BE ABLE TO DO THAT. AND I -- YOU KNOW, I AM TAKING BACK ALL THE FEEDBACK FROM COUNCIL AND IF YOU GIVE ME THAT DIRECTION, I PROMISE YOU, WE WILL HIT THE NUMBER AND WE WILL DO IT THE BEST WE POSSIBLY CAN WITH MINIMIZING IMPACT, BUT I DON'T WANT TO -- I DON'T WANT TO SELL COUNCIL THAT IT WON'T BE FELT, BECAUSE I THINK THAT IS BEING DISINGENUOUS WITH WHAT IS ACTUALLY GOING TO HAPPEN. >> Prince: CAN YOU REMIND ME HOW MUCH THE NEW POSITIONS THAT YOU'RE PROPOSING IN THIS BUDGET ADDED UP TO? >> ABOUT $3.3 MILLION. THE NEW -- ALL THE NEW POSITIONS. BUT I THOUGHT JUST IN THE GENERAL FUND, I THOUGHT IT WAS. >> OH, JUST THE JE GENERAL FUND? HOLD ON. >> Prince: SO THAT IS ABOUT WHAT WE'RE LOOKING FOR. >> WHAT THE DIFFERENCE WOULD BE UH-HUH. >> Prince: YEAH. >> I THINK THE CHALLENGE THAT WE HAVE WITH THE NEW POSITIONS, TRUST ME, I'VE SPENT A LOT OF HOURS THINKING ABOUT THAT ASPECT, TOO. THE CHALLENGE FOR THE NEW POSITIONS IS THIS: WE HAVE INCREASED WORKLOAD. WE'RE HAVING INCREASED DEMANDS FROM CITIZENS. WE'RE HAVING A INCREASED NUMBER OF PROJECTS THAT WE'RE TRYING TO COMPETE WITH AND COMPLETE, AND IF WE DON'T ADD THE POSITIONS, THE -- WE'RE AT A BREAKING POINT WITH WHERE WE ARE IN OUR SERVICE LEVELS, SO I -- JUST BEING HONEST, WE WILL SEE A DECLINE IN SERVICE LEVELS, AND I FEEL LIKE WE'RE GOING TO BE ADDING MORE WORK THAT WE SHOULD BE ADDING POSITIONS TO THE EXISTING -- EXISTING STAFF, AND I -- I JUST WOULD CAUTION THAT WE WOULD NEED TO LOWER EXPECTATIONS FOR WHAT THE SERVICE LEVEL WOULD BE IF WE DON'T ADD THOSE STAFF MEMBERS? >> OKAY. ANDARK W CORRECT, IT'S $3.3 MILLION. (CHUCKLES). >> Prince: I JUST WANTED TO ASK THOSE QUESTIONS. I'M NOT READY TO SAY. I WANTED TO ASK THOSE QUESTIONS AND LISTEN TO EVERYBODY ELSE -- >> Mayor Muns: COUNCILMEMBER HORNE? >> HORNE: YEAH, MAYBE KAREN YOU MIGHT KNOW, ON THE AVERAGE HOME, NOW WITH THE SCHOOL HOMESTEAD EXEMPTION GOING TO $100,000, WHEN WE'RE LOOKING AT THE CITY TAX, ISD TAX, THE COUNTY TAX, AND ALSO COLLIN COLLEGE, HOW WOULD THAT ALL CALCULATE OUT AS AN OVERALL TAX BURDEN. >> WE DID DO THAT BEFORE, AND IT'S GOING TO GO DOWN LIKE 700 ON THE PISD SIDE. FOR AN AVERAGE HOME. >> Mayor Muns: OKAY. THANKS. DEPUTY MAYOR? >> Tu: SO UNLIKE RICK, COUNCILMAN HORNE, I HAVE NO PROBLEMS, I DON'T HAVE ANY STRUGGLES, I DON'T HAVE ANY SUPPORTING THE CITY MANAGER'S PROPOSED TAX RATE, AND THE REASON FOR THAT IS BECAUSE I DISAGREE WITH COUNCILMAN RICCIARDELLI ABOUT THE HUGE INCREASE IN TAX. I THINK A LOT OF IT HAS TO DO WITH THE FACT THAT WE CUT EVERYTHING TO THE BONES FOR THE PAST FOUR YEARS. WE GRABBED MONEY THAT WAS RIGHT AND LEFT EVERYWHERE, YOU KNOW, THAT WE COULD FIND IN ORDER TO KEEP OUR NO NEW REVENUE TAX RATE. SO AT THIS POINT, IT LOOKS LIKE WE'RE GETTING A MAJOR INCREASE IN TAX RATE, BUT WE'E NOT. IF YOU LOOK AROUND TO ALL THE DIFFERENT CITIES, ALL OF THEIR PROPOSED TAX RATES ARE ALL MOSTLY HIGHER THAN OURS. AND THEY ARE INCREASING THEIR COMPETITION AGAINST US. THEY'RE USING US AS A TARGET PRACTICE. AND UNFORTUNATELY, PLANO IS NOT, YOU KNOW, A 19-YEAR-OLD KID. YOU KNOW, WE ARE MIDDLE AGE. GOT PROBLEMS. WE'VE GOT INFRASTRUCTURES THAT WE'VE GOT TO FIX UNLIKE SOME OF OUR, NEWER, YOUNGER, PRETTIER CITIES, THEY DON'T HAVE THOSE PROBLEMS, YOU KNOW, WE NEED COSMETIC SURGERIES IN ORDER TO BE COMPETITIVE. YOU KNOW, THAT IS LIFE. >> BOTOX. >> Tu: WE NEED BOTOX, THAT'S RIGHT. >> MORE THAN BOTOX. >> Tu: SO, YOU KNOW, WE CAN'T -- WE CAN'T KEEP DOING THIS JUGGLING ACT OF, YOU KNOW, I'M GOING TO TAKE SOME MONEY FROM HERE, I'M GOING TO TRY TO FIND IT IN SOME CUBBY HOLE, AND MAYBE WE'LL BE ABLE TO BALANCE THE BUDGET, BUT THAT IS JUST NOT THE WAY TO OPERATE A CITY. I MEAN, I'VE BEEN A SMALL BUSINESS -- I MEAN, COUNCILMAN SMITH, YOU HAVE BEEN IN BUSINESS, WE DON'T -- YOU DON'T OPERATE -- >> STILL IS HOPEFULLY. >> Tu: WE DON'T OPERATE A BUSINESS BY, YOU KNOW, CUTTING OUR, OUR QUALITY TO MAKE SURE THAT OUR COSTS OUT THERE IS -- IS, YOU KNOW, CHEAP. THAT'S BASICALLY IT, CHEAP. SO WHAT DO YOU WANT? DO YOU WANT TARGET OR DO YOU WANT LUXURY? SO IN PLANO, WE'RE CITY OF EXCELLENCE RIGHT? SO I -- I DON'T -- I DON'T LIKE -- I DON'T LIKE THE FACT THAT WE'RE ALWAYS HERE CRUNCHING NUMBERS OF, YOU KNOW, THIS PENNY AND THAT PENNY. WHAT WE REALLY NEED TO LOOK AT THE BIGGER PICTURE, AND THAT'S WHAT OUR JOB IS. WE -- AS CITY COUNCIL, OUR JOB IS TO BE BOARD OF DIRECTORS TO APPROVE OR DISAPPROVE CERTAIN THINGS RATHER THAN LOOKING AROUND TRYING TO HELP OUR EXCELLENT STAFF FIND MONEY THAT DOESN'T EXIST. I MEAN WE -- WE HAVE GREAT STAFF, AND WHEN WE'RE SAYING, OH, WE LOVE YOU, WE WANT TO KEEP YOU, AND TURN AROUND AND SAY, OH, BUT, YOU KNOW, LET ME HELP YOU FIND -- LET ME HELP YOU IMPROVE YOUR RECOMMENDATION, I MEAN, WHAT ARE YOU SAYING? YOU'RE BASICALLY SLAPPING THEM ACROSS THE FACE. SO ANYWAY, I -- I HAVE NO PROBLEM, NO QUALMS. >> Mayor Muns: THANK YOU. COUNCILMEMBER WILLIAMS? >> Williams: I'M PROBABLY GOING TO SURPRISE SOME FOLKS HERE. I AGR WITH COUNCILMAN RICCIARDELLI ABOUT THE -- THE BIG JUMP THIS YEAR IN HOMESTEAD TAXES; HOWEVER, I CAME UP WITH DIFFERENT MATH, AND I'D LIKE TO COMPARE NOTES. SO, YES, IT'S A 10. 2% JUMP IN THE HOMESTEADED TAX BILL, AS OPPOSED TO A 5.22% OVER THE ENTIRE PRIOR FOUR YEARS, SO OVER THAT FIVE YEAR PERIOD, INCLUDING THIS NEXT TOTAL OF A 15.96% TAXLD BE A INCREASE ON THAT HOMESTEADED PROPERTY, BUT WHAT I'M SHOWING FOR CPI, ACCORDING TO THE BUREAU OF LABOR STATISTICS, IS 20.77 PERCENT INCREASE OVER THAT SAME YEAR, SO THE TAX INCREASE WOULD BE FAIRLY LESS THAN INFLATION OVER THAT SAME TIME. I ALSO LOOKED BACK OVER THE 20 YEAR HISTORY OF THIS DATA, THANK YOU FORHAT, D STA STARTS IN 2003 TO 2004. WHEN THE GREAT RECESSION STARTED, WE HAD A INCREASE IN THE BUDGET NET OF THE WATER DISTRICT OF 29.3%. MCI, MUNICIPAL COST INDEX, WHICH IS WHAT OUR COSTS ARE BASED ON OVER THAT SAME TIME PERIOD WAS 30. 90%, RIGHT ACT NECK AND NECK. THIS IS BACK WHEN THE WORLD WAS NORMAL. AND THEN THE GREAT RECESSION HAPPENED, THE WORLD TURNED A LITTLE TOPSY TURVY, WE WENT THROUGH A ROLLERCOASTER IN TH INTERVENING YEARS, BETWEEN THEN AND 2012, WHEN THE SHIP SORT OF RIGHTED, WE HAD A 2.36% INCREASE IN BUDGET OVER THOSE FOUR YEARS, BUT MCI PLUS POPULATION GROWTH WAS 12.63%. MASSIVE IMBALANCE. BETWEEN THEN AND 2019, WHEN WE STARTED ADOPTING THE NO NEW REVENUE RATE, WE HAD A 36.8% INCREASE IN BUDGET, BUT ONLY A 23.4% INCREASE IN MCI PLUS POPULATION. MAIVEMBALANCE THE OTHER WAY. AND THEN FROM 2019 TO WHEN WE STARTED ADOPTING THE NO NEW REVENUE RATE, TO PRESENT, IT'S ABOUT A 20% INCREASE IN BUDGET, BUT A 27% INCREASE IN MCI IN POPULATION. BETWEEN 2008 AND 2020, WITH I WHEN THE WORLD REALLY TURNED UPSIDE DOWN, WE HAD 40.25% INCREASE IN BUDGET, AND A 40.9% INCREASE IN. MCI IN POPULATION, BY THE END OF THE 2020-2021 FISCAL YEAR, WE HAD ACHIEVED EQUILIBRIUM AGAIN. AND WHEN I RAN IN 2019, I HAD ONLY INTENDED ON ADOPTING THE NO NEW REVENUE RATE FOR TWO YEARS IN A ROW, I SAID AT LEAST TWO YEAR, BUT STILL THE REASON WE KEPT GOING WAS BECAUSE OF THE TURBULENT ENVIRONMENT. NOW, FOR THE PAST -- WE'VE RIGHTED THE SHIP BY 2020-21. IN THE PT TW YEARS INFLATION WENT OFF THE RAILS, SO GOING ALL THE WAY BACK TO 2008, NOT ALL THE WAY TO THE 2003 BEGINNING, BUT WHEN THINGS STARTED -- WHEN THE IMBALANCE BEGAN, WE'VE HAD A 61.8% INCREASE IN THE BUDGET NET OF THE WATER DISTRICT TO PRESENT INCLUDING THE PROPOSED BUDGET, AND I'M SORRY, NOT INCLUDING THAT, 73% INCREASE IN MCI PLUS INFLATION, SO MCI PLUS INFLATION HAS GOTTEN AHEADF US SINCE 2008. WE HAD RIGHTED THE SHIP BY THE TIME INFLATION WENT OFF THE RAILS, BUT THE SHIP CAME UNMOORED AGAIN. ALL THAT SAID, WE HAVE TO BALANCE MAINTAINING EXCELLENT CITY SERVICES AND CONTINUALLY REEARNING THE NAME THE CITY OF EXCELLENCE, WITH FISCAL STEWARDSHIP, BECAUSE WE CAN NEVER FORGET THAT THE CITY'S MONEY IS NOT ACTUALLY THE CITY'S MONEY, IT'S THE TAXPAYER'S MONEY. WE ARE CHARGED WITH MANAGING THAT RESPONSIBLY. WE ALSO HAVEO BALANCE THE PRESENT WITH WHATEVER SITUATIONS THE PRESENT THROWS AT US, WHETHER THAT IS 2020, 2021, 2008, ALL SORTS OF STUFF CAN HAPPEN WITH THE FUTURE, AND I TRY TO KEEP THAT 50 YEAR ROAD MAP OF WHAT IS PLANO GOING TO LOOK LIKE WHEN I'M LONG GONE, AND MAKE SURE THAT I WASN'T THE ONE THAT SCREWED THAT UP. SO WITH ALL OF THAT SAID, I WOULD SUPPORT THE1.76 TAX RATE IF WE CAN DEVOTE THE DELTA BETWEEN 40 -- .4060 AND 4176 TO A COMPENSATION FUND, BECAUSE WE STILL HAVE A LOT OF UNCERTAINTY WITH THE OUTCOME OF THE COMPENSATION STUDY, ANY SALES TAX SURPLUS, AND THE OUTCOME OF DART. AND IF WE CAN SOCK AWAY THAT MONEY IN A COMPENSATION FUND THAT COULD BE USED FOR SALARY, OVERHIRES AND NOT JUST FOR PUBLIC SAFETY OVERHIRES TECHNOLOGY RVICES NEIGHBORHOOD SERVICE, ANYBODY THAT MIGHT NEED IT, AS WELL AS ADDITIONAL FORMS OF COMPENSATION, LIKE A SUPPLEMENT TO THE PROPOSED INSURANCE PREMIUM HIKE, AND IF WE DIDN'T USE THAT EXCESS THIS FISCAL YEAR, THAT WE COULD ROLL IT OVER TO NEXT FISCAL YEAR FOR THE ANTICIPATED INCREASES THEN AS WELL, BECAUSE I RECOGNIZE THAT OUR BIGGEST EXPENSE IS OUR PEOPLE AND THAT'S WHAT KEEPS US THE CITY OF EXCELLENCE. BUT THAT'S -- THAT'S THE CIRCUMSTANCE UNDER WHICH I WOULD BE COMFORTABLE ADOPTI THE 4176 RATE. >> Mayor Muns: THANK YOU. COUNCILMEMBER HORNER -- HOLMER. >> Holmer: WHAT DID YOU CALL ME? >> Mayor Muns: HOLMER. [ LAUGHTER ] >> Holmer: WOW. COMBINE 'EM. SO WE'VE BEEN GIVEN SO MUCH INFORMATION SINCE MONDAY AND A LOT TODAY, AND QUITE HONESTLY, I DID NOT HAVE A LOT OF TIME ON M SCHEDULE TO DEEP DIVE THE WAY SOME OF MY COLLEAGUES HAVE, SO THANK YOU VERY MUCH FOR THE WORK THAT DID YOU. YOU HAVE A POWERPOINT PRESENTATION I CAN REFER BACK TO? [ LAUGHTER ] >> IT'S ONLY EXCEL RIGHT NOW. >> Holmer: AND I DO MEAN THAT IN ALL SERIOUSNESS. I REEL APPRECIATE MY -- MY COUNCIL HERE AND ALL THE PREPARATION AND ALL THE DIFFERENT WAYS OF LOOKING AT THIS -- THIS CHALLENGE, AND IT'S EYE OPENING HEARING THE CHANGES WITH THE INFLATION. I THINK MOST OF YOU PROBABLY SAW THE ARTICLE THAT PLANO GOT AN AWARD, I DON'T KNOW THAT WE'RE SUPER PROUD OF, BUT WE'RE THE HIGHEST INFLATION RATE IN THE NATION, SO AM I SAYING THAT RIGHT MARK? >> I HOPE NOT. BUT -- >> Holmer: I THOUGHT IT WAS -- >> SOMETHING TO THAT NATURE. HIGHEST ADJUSTED YEAR OVER YEAR COST OF LIVING INCREASE, YES, SO THERE'S SOMETHING ALONG THAT, BUT -- >> Mayor Muns: VERY VAGUE. >> WE'RE QUESTIONING THAT. >> Holmer: WELL, SO MAYBE THAT WAS PLANTED BY -- BY STAFF --'M TEANG, BUT THE -- I AND A LOT OF OUR STAFF DON'T LIVE IN THE CITY, REGARDLESS, THAT WAS EYE OPENING. I THINK MY TEMPTATION IN HEARING ABOUT THE NEED TO COMPETE, I MEAN IMMEDIATELY MY MIND GOES TO, WELL, WE NEED TO BE THE BEST, WE NEED TO TAKE CARE OF OUR STAFF, WE NEED TO HAVE THE TOP PAYING FIRST RESPONDERS IN THE METROPLEX, AND SO MY MIND KIND OF WENT TO HOW CAN WE BE CREATIVE, HOW CAN WE DO THAT? AND AS MARIA VERY WELL POINTED OUT, THAT IS NOT OUR JOB, WE'VE GOT AN AMAZING STAFF TO FIGURE THAT OUT. SO HAPPY TO HAVE MS. ROSS LEADING THOSE EFFORTS, AS SHE SAID ALWAYS LOOKING FOR CREATIVE WAYS TO MAKE SURE THAT WE ARE PROVIDING AMAZING BENEFITS AND WAYS TO ATTRACT AND RETAIN OUR EMPLOYEES, SO I -- I THINK WE HAVE THE IS EXPERTS HERE. THEY'RE ALREADY DOING THE BEST THAT THEY CAN DO WITH WHAT WE'VE GOT, AND I FEEL LIKE -- I REALLY APPRECIATE YOUR SUGGESTION, SHELBY, FOR SETTING THOSE DOLLARS ASIDE. I THINK THAT SOUNDS LIKE A GREAT -- A GREAT SOLUTION. I'M STILL DIGESTING THINGS AS WELL, THIS IS A LOT OF INFORMATION TO TAKE IN. BUT JUST AS A GENERAL DIRECTIVE, I WANT TO SUPPORT MAKING SURE THAT OUR -- THAT OUR EMPLOYEES ARE TAKEN CARE OF. >> Mayor Muns: COUNCILMEMBER SMITH? >> Smith : THANK YOU, MAYOR MUNS. >> Mayor Muns: TRYING TO GET IT RIGHT. >> Smith : IEAN, PRETTY MUCH EVERYTHING HAS BEEN SAID. WE ALL HAVE DIFFERENT OPINIONS AND QUESTIONS ABOUT THINGS, BUT OVERALL, EVERYBODY HERE AT THIS DAIS WANTS WHAT IS GOING TO BE THE BEST FOR OUR CITIZENS AND THE ABILITY FOR US TO CONTINUE TO DELIVER THE SERVICE LEVEL THAT MAKES US PLANO. I THINK STARTING OUT, I THINK DEPUTY MAYOR MENTIONED THIS, BUT IT IS INTERESTING THAT PLANO OF THE AT LEAST 20 CITIES AROUND THE, YOU KNOW, AROUND US HERE IN THE METROPLEX, WE HAVE THE LOWEST TAX RATE OF ANY OF THEM. THE ONLY ONE THAT IS CLOSE IS ALLEN, OUR NEIGHBOR, ALLEN, AND THEY DON'T HAVE THE HOMESTEAD EXEMPTIONS THAT WE HAVE, SO REALLY THERE'S NOT ANYBODY CLOSE TO US, AND I THINK THAT'S AT THE .4176 THAT WE'RE TALKING ABOUT, SO I MEAN I'M -- LONG STORY SHORT, IF THAT'S WHAT THE CITY MANAGER THINKS THAT WE NEED TO CONTINUE DELIVERING THE LEVEL OF SERVICES AND BUYING THE EQUIPMENT, I HOPE EVERYBODY IS PAYING ATTENTION IN OUR SOLID WASTEREA,HE EQUIPMENT THAT WE USE TO DO THAT SERVICE HAS DOUBLED IN PRICE, THAT'S NOT CHEAP, AND THAT IS ASSUMING THAT WE CAN STILL GET THEM AND SOMETIMES THE COST IS GOING TO BE EVEN HIGHER BY THE TIME THAT COMES ACROSS, SO I THINK WE'RE STARTING FROM A GOOD PLACE. I HAVE EVERY CONFIDENCE THAT BETWEEN NOW AND WHEN WE ACTUALLY ADOPT, WE VOTE ON THE -- THE ACTUAL NUMBER THAT IT'S GOING TO BE, THAT IF THERE'S A WAY THAT THE CITY MANAGER AND STAFF DETERMINE THAT WE CAN STILL DELIVER THOSE SERVICES, THAT EVERYBODY EXPECTS, AND PAIR THE FINAL NUMBER DOWN HE'S GOING TO DO THAT, BUT I SAID THE OTHER NIGHT, I WILL SAY RIGHT NOW, WE WOULD NOT BE WHO WE ARE WITHOUT OUR PEOPLE, AND IF IT TAKES, YOU KNOW, KEEPING THE .4176 TO DO THAT, THEN THAT'S WHAT WE NEED TO DO, SO I SUPPORT THAT NUMBER, AND I WILL LEAVE IT TO YOU TO TELL US IF WE CAN CHANGE THAT. >> Mayor Muns: OKAY. THANK YOU. THANK YOU VERY MUCH. MAYOR PRO TEM? >> Prince: ALL RIGHT, SO WITH YOUR RECOMMENDED BUDGET, SINCE YOU ONLY HAVE GOING TO HAVE TO MAKE SOME ADJUSTMENTS TO GET UP TO 4.5 RIGHT? >> CORRECT. >> Prince: OKAY. SO I WOULD BE COMFORTABLE SUPPORTING THE -- YOUR RECOMMENDED BUDGET IF THAT CHANGE YOU MAKE TO GET THERE DOES NOT COME FROM CUTTING INFRASTRUCTURE, BUT -- I WON'T TELL YOU HOW TO DO IT, THE STRUGGLE I'M HAVING IS WITH $3.3 MILLION OF ADDITIONAL STAFF, SO I MEAN -- >> UNDERSTOOD. >> Prince: THAT'S WHERE I WOULD PREFER THAT IT CAME OUT, BUT I DON'T LIKE THE IDEA OF CUTTING INFRASTRUCTURE PROJECTS TO GET TO THAT. >> UNDERSTOOD. THANK YOU. >> Ricciardelli: THANK YOU MAYOR. SO AS I SAID, WHEN I STARTED OUT, I FULLY SUPPORT THE 4.5% PAY ACROSS THE BOARD PAY INCREASE AND THE $2 MILLION TO IMPLEMENT THE COMPENSATION PHILOSOPHY STUDY BECAUSE EACH PERCENTAGE IS ABOUT 2.5 MILLION, THAT MEANS ESSENTIALLY WE'RE PUTTING THE EQUIVALENT OF A 5.3% RAISE TOWARD COMPENSATION ADJUSTMENTS BECAUSE, YOU KNOW, 4.5 PLUS THE 2 MILLION FOR THE COMPENSATION FLOSS AT THIS STUDY, IF THAT WAS BE EQUAL TO .8%., IT WOULD AND, YOU KNOW, HECK, IF WE'RE TALKING ABOUT, WE NEED TO GO HIGHER, WE CAN HAVE THAT CONVERSATION TOO. WHAT I WOULD URGE US TO DO, THOUGH, IS WITH RESPECT TO WHAT COUNCILMEMBER WILLIAMS AND I BELIEVE ALSO HOLMER SAID, I DO ANTICIPATE THAT WE WILL HAVE ADDITIONAL NEEDS NEXT YEAR FOR EMPLOYEE RAISES. I MEAN, WE DO EVERY YEAR AND WE'RE GOING TO BE IMPLEMENTING A COMPENSATION FLOSS AT THIS STUDY. -- PHILOSOPHY STUDY SOME OF THE DIRECTION GIVEN WAS 4.76, LEAVE SOME OF THAT MONEY SITTING UNTIL NEXT, I THINK OUR RESIDENTS WOULD PROBABLY PREFER THAT WE LEAVE THAT MONEY IN OUR POCKETS UNTIL NEXT YEAR IF WE'RE GOING TO SPEND IT NEXT YEAR AND TAX THEM THEN. SO LOOKING AT THE MONEY THAT IS GOING TO BE REQUIRED TO IMPLEMENT THIS, SAID IT WAS AN ADDITIONAL 3.3 MILLION, THE PLAN THAT WAS PRESENTED TO GET US TO 40.60, TOOK ABOUT WHAT 6.4 6.5 MILLION -- 6.2? OKAY. AND THAT WAS A 1.16 CENTS DECREASE, SO WE'RE PROBABLY LOOKING, YOU KNOW, SOMEWHERE AROUND $5 MILLION FOR EACH CENT OF THE TAX RATE, SO JUST DOING THE QUICK MATH, THE 3.3 MILLION FOR THE -- TO DO THE 4.5% RAISE, ADD IT ON TO THE PLAN THAT WE ALREADY HAD TO BE AT 40.60, WOULD BE I BELIEVE ABOUT ANOTHER TWO-THIRDS OF A CENT, THAT WOULD PUT US AT MAYBE 41.27 -- I'M SURE IT'S NOT EXACTLY 41.27, IT'S SOMEWHERE THIS THAT 41.3 BALLPARK. YOU KNOW, HONESTLY EVEN THAT IS HIGHER THAN I'M REALLY COMFORTABLE WITH, BECAUSE I'D LOVE TO -- I'D LOVE TO SEE US DO THE THINGS WITH THE DART FUNDS. I REALLY THINK THE THING WITH THE ECONOMIC DEVELOPMENT FUND, IF IT'S A GOOD POLICY THIS YEAR TO CAP AT 10 MILLION, IT'S A GOOD POLICY FOR LAST YEAR, TOO. BUT ANYWAY, IF WE WERE IN THAT RANGE, I MIGHT BE ABLE TO SUPPORT IT. >> Mayor Muns: THERE'S SEVEN OF US THAT WILL WANT THE 41.76. >> Ricciardelli: SURE, SURE. >> Mayor Muns: SO ALL I'M SAYING IS, I APPRECIATE IT, BUT LET'S LET MARK COME UP TH SOLUTIO TO GET US TO WHATEVER. I'M GOING TO BE IN FAVOR OF THE 41.76. SAME TAX RATE AS LAST YEAR. AS RICK SAID, WE'RE THE LOWEST TAX RATE IN ALL OF COLLIN COUNTY, AND MOST OF THE METROPLEX, AND WE CAN'T RACE TO THE BOTTOM. WE JUST CAN'T. TO GET TO THE SERVICES THAT I THINK ALL OF US EXPECT IN THIS COMMUNITY, WE'RE GOING TO HAVE TO DO THAT. WE HAVE NO CONTROL OVER APPRAISED VALUES. AND IF WECT ASE APPRAISED VALUES ARE AN ACT OF SOMETHING THAT WE'VE DONE, THAT'S WRONG. WE'RE DOING THE BEST WE CAN TO KEEP THIS RATE AT THE LOWEST OF ANYONE AROUND US, AND COMPARABLY CITIES THAT ARE MUCH LIKE US, IRVING, ARLINGTON, PEOPLE LIKE THAT, THEY'RE SIGNIFICANTLY HIGHER. SO WE'RE DOING A TERRIFIC JOB OF BEING ABLE TO KEEP THAT NUMBER LOW, AND I THINK -- I THINK THAT'S A CREDIT TO THE CITY MANAGEMENT AND BEING ABLE TO HAVE SUCH A LOW TAX RATE, AND BECAUSE OF THAT, I THINK WE NEED TO REALLY KEEP AN EYE ON IT. WE'VE MADE SUCH EFFORTS TO MAKE OUR SENIORS BE MORE AFFORDABLE IN THE AREAS THAT WE CAN AT LEAST TRY TO HELP, WHICH IS 30% OF OUR PROPERTY TAX REVENUE, AND 30% OF OUR REIDENTS HAVE SENIOR EXEMPTIONS, SO THAT'S SIGNIFICANT. AND YET WE WANT TO CONTINUE TO DO THAT. WE WILL CONTINUE TO DO THAT, BECAUSE I THINK IT'S IMPORTANT FOR US TO MAKE SURE THAT THEY'RE AS RELIEVED AS POSSIBLE REGARDING PROPERTY TAX. SO I'M GOING TO BE IN FAVOR OF THE .4176 AS WELL. AND SO I BELIEVE THERE'S SOME DIRECTION FOR YOU, CITY MANAGER. >> THERE IS, BUT MAYOR AND COUNCIL, BEFORE WE -- I NEED A COUPLE OF QUICK THINGS. WE TALKED ABOUT, AND I SENT THIS OUT ABOUT THE 4.5% RAISE, I SAW UNION ANYMORE AT THIS AROUND THE DAIS TO GET THAT DONE. I'M SEEING HEADS NOD. I DID NOT HEAR ON THAT WITH SHARING WITH THE PISD FUNDS, I KNOW WE'RE FOCUSING A LITTLE BIT DIFFERENT, SHARING IN SOME OF THOSE COSTS, THAT IS NOT BAKED INTO THIS BUDGET, AND WHAT I'M HEARING IS KEEP IT AS LOW AS POSSIBLE AND CONSIDER THAT NEXT YEAR OR FUTURE YEARS, BUT THIS IS NOT GOING TO HAPPEN PARTICULARLY THIS YEAR, AND I'M MAKING SURE -- THAT'S WHY I'M ASKING THE QUESTION, MAKING SURE I'M HEARING IT CORRECTLY. AND THE OTHER TWO POINTS I HEARD WERE I HEARD $6.2 MILLION AS LONG AS IT'S GOING TOWARD COMPENSATION IN SOME FORM OR FASHION, YOU'RE OKAY WITH THAT, AND NO INFRASTRUCTURE -- DON'T TOUCH THE INFRASTRUCTURE SIDE OF THINGS. I WANT TO MAKE SURE I'M SEEING NODS AROUND THE DAIS THAT THAT'S WHERE THE -- AT LEAST THE MAJORITY IS FAIRLY COMFORTABLE. >> Smith : ONE THING I WOULD LIKE TO ADD, YOU AND I HAVE TALKED ABOUT IT ALREADY, I KNOW YOU'VE ALREADY BEEN THINKING ABOUT IT, IT IS WITH COUNCILMAN WILLIAMS, I WANT TO BE SURE WE TAKE CARE OF OUR EMPLOYEES AND PUBLIC SAFETY AND WE KEEP THE BEST OF THE BEST. I KNOW WE DO THE SALARIES A CERTAIN WAY, WE DO IT, WE INCREASE, AND THEN EVERYBODY WATCHES US, AND AS SOON AS ORS, THEY INCREASE THEIRS AGAIN, THEY KEEP JUMPING US AHEAD, I WOULD LIKE TO SEE US DO TWICE A YEAR REVIEWS OF MARKET SO WE'RE NOT BEHIND THE 8 BALL, MAYBE WE CHANGE IT UP AND KEEP EVERYBODY GUESSING, BUT I THINK THAT WOULD BE A GOOD STEP TOO. >> I DON'T HAVE AN ISSUE WITH THAT, I THINK THAT'S WHERE HOLDING TO THAT $2 MILLION TO START THAT COMPENSATION ADJUSTMENT IS CRITICAL ALSO, IF THERE ARE COUNTER MEASURES THAT ARE TAKEN, WE'RE ABLE TO KIND OF CONTINUE OUR MOVE MGHT WITH MOVH OUR PLAN. >> Ricciardelli: MAYOR, I JUST WANTED TO ASK, SO I'M A BIT UNCLEAR IF -- WE HAD A PLAN AT 40.60, OBVIOUSLY THE COMPENSATION WHICH I SUPPORT WE ALL SUPPORT, TAKES US ABOVE THAT, I WAS HOPING TO TAKE OTHER THINGS OUT, I CAN SEE THAT'S NOT THE DIRECTON OF THE COUNCIL, BUT I STILL DON'T -- I'M STILL NOT CLEAR WHAT WE'RE TALKING ABOUTS FARS THE FUNDS THAT GET US UP TO 4176? YOU KNOW, ARE WE TALKING ABOUT USING THOSE A CERTAIN WAY OR I JUST DIDN'T UNDERSTAND WHAT WE'RE SAYING THERE. >> Mayor Muns: GO AHEAD. >> YES, THE DELTA BETWEEN THE CITY MANAGER'S RECOMMENDED BUDGET AND THE -- THE 4060 WAS 6.2 MILLION, NOW, WE HAD DISCUSSED HOW WE WERE GOING TO COME UP WITH THAT, WE WERE GOING TO GO TO WHAT WE ASSUMED WAS THE VOTER APPROVAL RATE. NOW, BECAUSE OF AT LEAST FROM MY STANDPOINT, BECAU OF THE UNCERTAINTY WITH HOW THE DART WORK IS GOING TO GO, THE SALES TAX SURPLUS, WHICH I DIDN'T SAY THIS, BUT I WOULD LIKE TO PUT ANY SALES TAX SURPLUS INTO OUR RAINY DAY FUND THIS YEAR, BECAUSE WHILE WE MAY BE ACHIEVING EQUILIBRIUM WITH THE BUDGET, I DON'T TRUST THAT THE WORLD IS ACHIEVING EQUILIBRIUM, SO I WANT TO BE PREPARED FOR EEVENTALITYS. WE CAN AGREE TO THE 4.5% INCREASE RIGHT NOW, BUT ON THE OTHER SIDE OF THE COMPENSATION STUDY, WE MAY NEED TO MAKE FURTHER AND MORE CREATIVE ADJUSTMENTS AND TO THAT END, SO I ANTICIPATE THAT WE MIGHT NEED THAT 6.2 MILLION, THE ENTIRETY OF IT, BUT TO OFFER SOME CLARIFICATION, I WAS ONLY -- I WASN'T ANTICIPATING THAT WE WOULD AUTOMATICALLY ROLL SOME OF THAT OVER TO NEXT FISCAL YEAR, I WAS SAYING THAT IF WE HAPPEN TO NOT SPEND IT ALL THIS FISCAL YEAR, THEN WE COULD ROLL THAT OVER, BUT I WOULD WANT IT EARMARKED FOR COMPENSATION. >> IT WOULD BE THE PRIORITY FOR THE INCREASE IN COMPENSATION. >> AND THE BOTTOM LINE IS, AND TO MAKE SURE THAT WE'RE CLEAR, OF THE 6, 3.3 WOULD IMMEDIATELY GO TO THAT ADDITIONAL 1.5%, AND WE WOULD BE TALKING ABOUT THE DELTA BETWEEN THE 6.2 AND THE 3.3 AS BEING DEDICATED TOWARD COMPENSATION ADJUSTMENTS WITH THE COMPENSATION PHILOSOPHY ADJUSTMENTS OR BEING HELD TO BE ABLE TO BE USED IF THERE IS -- >> Mayor Muns: TO PIVOT IF NECESSARY. >> THAT'S THE WAY THAT I UNDERSTOOD THAT PROPOSAL. >> Williams: THAT'S WHAT I INTENDED. >> Ricciardelli: OKAY. WELL, THANK YOU FOR THAT CLARIFICATION. WELL, YEAH, THANK YOU. >> Mayor Muns: NO FURTHER -- ADJOURNED.