Calling the meeting to order. City of Laro Special Council meeting, Council Chambers, Sentin Street, February 26. It is 12:09 p.m. All stand for the pledge of allegiance. I aliance to the flag of the United States of America and to the stands one indivisibley and justice for all. >> Texas pledge. >> Moment of silence, please. Thank you. May be seated, Mr. Secretary. Roll call, please. Yes, Mayor. Honorable mayor Dr. Victor Dravinho >> present. >> Honorable mayor promp and council member district 1 Gilbert Gonzalez. >> Honorable council member district 2 Ricardo Richie Ranel Jr. Honorable council member district three Melissa Saroa. >> Honorable council member district 4 Ricardo Rick Gara. >> Honorable council member district five Ruben Gutierrez Jr. >> present. >> Honorable council member district 6 doc Dr. Tyler King >> here. June. >> Honorable council member district 7, Vanessa Perez. >> Honorable council member district 8, Alisa Cigaroa. >> Mayor, you have a quorum. Thank you. I don't think we have any citizens comments. >> No, we'll go into communication. But before that, I am happy to announce that the Texas Transportation Commission unanimously voted for a or approved a fi 58.5 million dollar for the Santa Maria railgrade separation under state fund program. This is a plus for Loredo. We'll proceed with the communications presentation by mayor providing general comments on city manners upcoming initiatives and other relevant updates for the city council and the public. Some announcements regarding ethylene oxide and mentioned last meeting. We're going to have an ETO assessment press conference tomorrow at 10 a.m. at the Laredo Health. As we well aware, city council voted to request for a contested hearing for the renewal of our local sterilizing sterilizing company. Balancing public health and public interest when it comes to ethylene oxide is one of the most challenging and important policies issues facing our community and it is the reason why I propose with this support of the city council initiated our air monitoring system. With regards to trade, I want to inform the public where Laredo is currently Port Laredo remains the number one inland port in the United States. That has not changed. And terrorists have hurt international trade overall. How else do we know when you hear the Laredo move from number one to number three that comparison is not apples to apples because it is against all overall US ports combined including major sea ports airports like like the port of New York, Port of Los Angeles and those ports handle ocean containers and international air cargo. Laredo does not. We are a land port of entry and even then we were number one in that category without ships or planes. Even at that broader comparison, we are ranked number three in total trade value nationwide. It is also important to understand why New York and Los Angeles temporarily moved ahead because much of the recent increase in trade value is tied to high dollar commodities such as gold and medication which dramatically raise the total value because rankings are based on dollar value not volume by volume of trucks. Laredo commercial crossings. Laredo continues to lead. Laredo is one of the few major ports that experienced growth. We're one of the only ports that grew by almost 5% and had more volume overall. That tells us something more powerful. US Mexico supply chains remain strong even despite heavy tra heavy tariffs. Alaro remains essential to the competitives of North America. that statement to the strength of our workforce, our customs officers and our logistic partners and our bational relationship. Laredo is still the gateway to North America. Now to speak about city of Laredo efficiency study. Loredo. As mayor of the city of Laredo, I want to speak directly to our community about comprehensive efficiency study that was performed by our city manager as part of the Laredo efficiency and innovation plan or LEAP. There was a review and effort to ensure that our city government is aligned with its most important responsibility delivering essential services efficiency. responsibly and sustainably. The goal was straightforward to align our budgetary needs with the core governmental functions. These are services that our resident depend on every day, especially as we navigate economic pressures from tariffs, a shrinking economy, and the middle class and potentially impacts on city revenues. We must be proactive, not reactive. with what I along with the city council anticipate a comprehensive look at all city departments and they were asked to conduct an internal self assessment. The objective is not to reduce services is to refine them. Another key component of policies focus on strengthening our core functions like police and fire which are core services that are essential to keeping our community safe. As a leader in border security and one of the safest cities in the country, public safety remains our highest priority. And we want to ensure we are competitive, fair, and efficient while maintaining a high level of protection of our residents and what they expect. This also includes making a hard decision when it comes to our priorities to meet the demands on tomorrow's growth. Returning to core functions means prioritizing public safety, infrastructure, economic development, and essential city services. It means ensuring we remain fiscally responsible while continuing to invest in Laredo's future. With that being said, let's move forward with staff reports. >> Mayor, may I? >> Yes. Go ahead. I'd like to recognize council member Rangel, council member Garca, and council member Peris, please. >> Oh, noted. >> Thank you. >> All right, mayor and city council. Uh, today's discussion is about discipline, sustainability, and long-term stability for the city of Laredo. Over time, our community has grown in population, in economic activity, and in infrastructure responsibilities. And that growth occurred. As that growth occurred, our expenditures at times grew faster than reoccurring revenue could sustainably support. We were able to def meaningful services and we were let me get my I've just got a few points I want to make sure I get clear. So we were able to deliver meaningful services and we should be proud of that. But during the bond discussions we had clearly we heard clearly that the city must strengthen its fiscal discipline and clarify priorities. This efficiency and deficiency study reflects that responsibility. It is not a reaction. It is not a reduction exercise. It is a structured effort to ensure that our mandates are secured first. Our projects are sequenced responsibly and our long-term growth remains sustainable. What follows is a framework designed to strengthen governance, not to disrupt services, but how to refine how we manage them. Um, I've got a few slides right before we get into the study because I want to make sure that I drive a couple of these points home in a little bit better detail. Why this study was necessary. These are some of the primary points within uh what what Laredo felt over time. Our city expenditures are growing faster than the reoccurring revenue growth. We we we we've we've just been growing because we're a growing city. We're the number one port of entry. We are uh a border city. We have a lot of different things that are impacting our our our desire to get services done. Property tax growth has remained constrained. We have a we have a challenge with growing keeping our property tax growth which is our number one fund our number one revenue source in our general fund. It is constrained by the ability as to how it breathes and how it grows. Some of our rates and fees have not fully reflected service costs. We we do as much as we can with with what we have, but we find that these costs have not been fully covered within our rates and fees. The salary structures have expanded without full structural recalibration. We just went through uh when I first got here, we went through the seagull study. That was the first time that there was a comprehensive look at all the salaries outside of the CBAs um in over 30 years. We a city should not function in that manner for for those nations. We were able to deliver meaningful services. You work hard at every one of you your positions each one of you as elected official you work hard to deliver those meaningful services. But sustainability requires this realignment. And um and as I go through my slides, I I've got the little statement at the bottom because I wanted to leave you with the crux of exactly what we're t talking about there. And so that's probably one of the most important pieces of the of the uh slides as well too. But uh as we walk through this, but this is why the study was necessary and we why we were trying to look at that and um so when when we started to hear from the the community uh this was during our bond discussions. This is where this initiated and where it started and they said well take care of your house first. Where where are you spending your funds at this point in time? So they asked us to strengthen our financial discipline. They asked us to clarify priorities and ensure sustainability before expansion. Throughout the last year we have done that with a lot of our financial processes within our budget cycles. We've shifted our how we do our expenditures. we actually implemented the moratorum within our our our discretionary expenditures a little bit faster in order to help move the funds through our our system. So I I just want to make sure that the community understands we heard them and we have actually been adjusting to improve that that process. When we started looking at the efficiency and deficiency study it is a cultural shift not a one-time action. I we did not create a document that says follow this footprint and everything gets better. What it does is it establishes all the pieces that we need because I believe that um an efficiency should occur all the time. We should only spend the money on our highest priorities and we should only spend our money when it's necessary to do that. and uh and we need to make sure that when we do spend the money that the services that we provide are of a high quality and and actually serve the public and the community. So this is not a oneanddone study. Uh it is not it is not it's a permanence governance discipline. So we overlay this entire process over the entire structure and we look at at the changes on a regular basis. One of the things we talked about last year that we were bringing into this whole conversation within our budgeting is our mandates funded first. These are our highest priorities. This is our public safety services. This is all of the stuff that we are doing based upon being a number one port of entry, being on the border being all those things. We're going to take care of our mandates first and then as we as we progress through that, if we have the funding to do all the other wonderful things, we want to do those things as well too. But start with the mandates. We also want to make sure that we are clarifying our priorities before the expansion. So, and a lot of you have talked about this over the three years I've been here as well too. We need to incorporate the M conversation as we build these these uh the parks as we build the other structures. We have to look at the M cost because we have to be able to absorb them in our annual reoccurring budget. And so we want to make sure that we've clarified all of those priorities with them before we allow everything to expand. And then sustainable growth over reactionary growth and and uh or reactive growth. Um we we all know that we we want to do better with the the funds that we do have. And so we want to make sure that we have everything aligned up there. We have to be careful about doing it on a reactionary basis though because I that is normally not a sustainable process unless we've looked at all those different legs of that process. So this is about a cultural shift managing the growth responsibly. Um again we're one of those communities we have a very stable increase in population. We are we are continually growing. Laredo remains the leading landport of US and Mexico trade. We are we are uh hitting above our belt for for one of the terms that it gets used because uh as the mayor alluded to about the adjustment and how the trade numbers look. The number one and number two uh ports of entry that are being talked about there are are five million in population or bigger. We're 260,000 in population. We're hitting above our belt and that and we like to be there for that. But there is an impact to all of our services in order to get there. The infrastructure and service obligations are expanding. They're going to continue to grow because as a growing community, you have to continue you have to continue growing with that as well too. The challenge we have is that some of our revenue sources don't grow at the pace that we are growing. And so we have to be very creative about that structure. The growth in the growth increases operational demand. And this is where we get into talking about uh especially with police and fire. We continue to talk about what the need is about expanding our groups, expanding our crews, expanding our services within that structure. That is it's very very challenging in order to balance all of those conditions out. And the efficiency means prioritization and disciplined expansion. Um it is okay to say that we're not going to do something. I I I think everybody needs to understand that as well too when we look through the efficiencies and everything because it is better to do everything at a high quality level than rather than do something very mediocre or very low-end. It's not enough to just do just to get by. I think we have to focus on doing a high priority and and doing it well. So the context matters Larredo in comparison. I do want to make sure I share this because I think that uh what we saw in the bond uh discussions and everything else, everybody's out there looking at what everybody else is doing. So these comparisons are very important to look at. I just don't want to control everything. Our spending levels in Laredo are consistent with peer cities of our similar size. You you look at anybody in in Texas, we are spending at the same rate as everybody else. So there there are no there's nothing there that says that we are overspending within any of our structures that are there. I think what what happens with some of our public and everything is it becomes a u u uh the the specity of what we're spending on because in their mind they wouldn't spend the money on on that. So I I'll just say that you know they would rather not spend it on parks and recreation. They'd rather spend it on public safety or or vice versa. and and there's a lot of different personalities out there that have ideas about how they if they were sitting in your seat, how they would spend. The idea is that we bring this together, but Laredo is not overspending its funds. Laredo is right in right in line with all the comparisons that are out there that we can match up against when we're looking at that. We have different influences on our funding because we are a border city. We are the number one port of entry. We have different influences on how we spend our money. And so that major port activity does increase service demands. Uh and it does impact our public safety and our infrastructure. 22,000 trucks a day coming through our city. That's an impact that that not a lot of cities out there have. We also have cultural expectations that influence service delivery. I I think that's very important. We are a very family oriented city and we actually take care of ourselves very well and and that actually influences how we make some decisions as to take care of our entire community as as a as a family structure would. Um and so what I what I wanted to make sure is that this issue is not is is about structural alignment. Making sure our funds are where they are supposed to be. It is not about excessive spending. I cannot find anything out there that says that we are overspending for all the wrong things. It is about prioritization and it is about structural alignment. So, balancing the short-term stability and the long-term success. This is something that we've talked about quite a bit. We've we've looked at this within our chapter 380s. We've looked at this in a lot of different things. And this goes back to the the earlier conversation where let's take care of our house first. Let's let's get our house built on a strong foundation. Um and then let's go from that point. The the shortterm stability requires discipline expense management. It it's good to look at the future needs. It's good to look at the and chapter 380s in my mind are a are a long-term investment. We're saying we're going to get this development here because we're going to provide these incentives, but it is a long-term investment. We still have to live through the day. And so the whole structure about this efficiency study and everything is to make sure that we're taking care of what we have to do today and then we focus on what we have to do tomorrow. And I think that's the big thing that I want to make sure I just keep driving home is that the mandates and the core services must be secured first. The capital projects and and you'll hear a little bit about this. So once we get done with the efficiency study, our budget director is going to cover just a couple broad level points for where we're headed with the budget. But our capital projects must be sequenced responsibly and completed in a timely fashion. We want to make sure that every capital project out there, we've actually done an assessment on the M into the future, at least a five-year deal for that to make sure that you are fully aware what the impact is as we bring these services online for everything that we're doing. Why no dollar target was established and this this started with the conversation we started putting together the efficiency study. I got a lot of questions asked going, "Well, how much are you going to cut?" And and I wanted to make sure I expressed to you a growing city, it was very difficult to say, "Let's just cut $20 million or let's cut $40 million." We did not establish a dollar target in here because what we were looking for was a governance framework, a structure we could lay over our city and do this on a regular basis of that. We I happy in there. Everything that we do with an efficiency um will have a dollar amount associated with it. We can tell you what we estimated it's going to be at, but I we did not want to we did not want to jump so far ahead and say, "Look, we need to cut $60 million out of the budget because then we're going to impact." The negative side will be is that we're a growing community that needs 10 more officers or 10 more firefighters or or or another park system or a rec center or or we're going to fix the historical sectors in the downtown. We did not want to put that out there that way because I I truly believe that in this case the efficiency study is about prioritization of our expenses. That's the most important thing. Making sure that we are spending our dollars on the highest highest benefits back to this community. and we're going to get there. Um, I think I covered all those different points on that. All right. And I will say that council has already taken important steps. Last year, we did a lot of work. We did some significant budget resolutions to say this is what when we look at thirdparty funding, when we look at these different structures within the budget, please utilize this as our as our balancing our framework and everything. And then we build we build to that model. Uh it's not a perfect system because usually there's a cause and effect on certain things as we try to change the legislation, but your work last year helped set us up for this year. And we're going to do a lot more improvements within that budget system. And I think we're you're going to be very happy with where we're headed with that because those resolutions that we adopted last year are moving us into this year's conversation. The structural improvements to the budgetary process are going to be that's what happened within that the increased fiscal oversight and transparency. Again, we want to look at the entire entirety of what we're trying to provide and that's where you're going to start to see the departmental changes once this efficiency study gets on its on its feet and moving. This study does build off of that foundation that this council started in the last couple years working together on the next steps. Um what we want to make sure when we provide you with this information on the uh on the efficiency study, we want to make sure that we are hitting the mark of what you want as a city council. We want to confirm that we have shared priorities within the structure because otherwise we're we're going to go down different paths and we may not meet up uh with what we're trying to accomplish. Uh we want to determine the pacing of the implementation. Uh if this is if this is adopted, then we will go in and we will set the pacing of of the of the implementation. We're going to refine this as it goes. I don't believe that in in a growing community that we can lay this overlay this over the city and think everything's going to just work perfectly. I don't I just don't see that happening. We're going to adjust as we go with it. We want to continue strengthening our fiscal sustainability and all the conversations you have, the ones that you love and the one that you hate because I know that these are tough conversations about fiscal responsibility within that structure. It is a good thing and I'm so glad that you're here for that as well too because we are going to strengthen our fiscal stability within that structure and it's going to take all of us in order to do that and then also working together aligning that implementation to the year end reports. Just completed my evaluation and everything. Thank you so much for that confidence that you have in me. But what we're going to do from that is that we're going to try to stay focused on what you're asking us to get accomplished. All of our city staff and everything. So um so at the core this efficiency study effort is about balance. Laredo is a growing community with unique service demands and our responsibility is to ensure that growth is supported by structural discipline. This is not about contraction. It is about prioritization. It is not about flash. It's about governance. We begin this work. We began this work internally because lasting reform requires internal ownership. This is why I wanted to make sure we did this in-house. I wanted to make sure every department weighed in on what they believe that they needed to do. With that context established, I would now like to transition into the study framework itself, which outlines how we operate operationalize these principles through financial modernization, capital discipline, and continuous improvement. So, mayor, I'm going to bring up uh Miss Angie Angela Cantou, who we brought on staff with our budget in order to help coordinate all this information that we've collected from our departments and everything. We've we've simplified it within the uh the presentation to kind of get get it down. You've had the present or you've had the study in your hands for a while now. So, you know, we're ready for some conversations and some answers. So, um thank you. >> All right. Thank you. name and title for the record, please. >> Good afternoon, Mayor. Happy birthday. >> Thank you. >> Council members, Andrew, come through for the record. I am here to present the efficiency and deficiency study. A lot of what you're going to see in the next upcoming slides is going to reiterate what Mr. Ne has already discussed. This study establishes a unified citywide framework to improve long-term operational efficiency, fiscal sustainability, and service delivery modernization for the city of Laredo. The study emphasizes improving the performance, speed, and quality of public services through operational, technological, and structural reforms, otherwise known as governance, rather than simply cutting budgets. reducing staff or slashing services, which is austerity. We want to be able to do more with less, not less with less. Financial benefits are expected to occur over time through better alignment between service demand, staffing models, capital planning, and improved cost recovery, not through workforce reduction, or service elimination. This study focused on four core objectives. The first one was to strengthen organizational alignment and I will discuss these a little bit more in depth in the upcoming slides. Modernize financial framework, stabilize the capital improvement plan >> and institutionalize continuous improvement. The first objective is to strengthen organizational alignment. We will continue to maintain sectorbased alignment under the assistant city manager system which is organizing departments that do similar or related work under the same leadership. We will continue to consolidate and integrate division level service related functions and we will present council with strategic considerations that involve ordinance level changes and will not be an automatic restructure. These examples demonstrate how aligning related functions improves service delivery. If you look at your slide, traffic is now reporting to the engineering department. Building and development planning, building and development now reports to the planning department and animal care services reports to the health department. All of these changes were done in order to have better coordination, improve customer service and to reduce fragmentation. Right now we have employee wellness that is currently reporting to health department. That is a a division that was in progress and will come to you within the the upcoming budget that will help help align the program with public health expertise. The parking meters are going to be reporting to police department in order to enforce naturally enforcement naturally aligns with compliance functions. The next core objective is to modernize the financial framework by implementing mandate based budgeting which prioritizes legally required services to be funded such as PD and fire debt payments before spending money on discretionary programs such as holiday events, community festivals, and youth leagues. We will continue to develop budgets by service sectors, not isolated departments. And we want to strengthen the cost recovery philosophy by ensuring that fee structures reflect actual cost of service delivery. The next objective is to stabilize the city's CIP. We want to adopt a citywide project governance reform policy. This slide outlines how we stabilize this the capital improvement plan, not during construction but throughout the full life cycle of a project. On the left side, we strengthen project governance controls. These steps are designed to reduce cost escalation, prevent scope creep, and improve accountability. On the right, we're adding something equally important, life cycle, and maintenance integration. Too often, the projects are approved based on construction cost alone. This approach ensures that we analyze total cost of ownership including staffing, maintenance, utilities, and on ongoing operating expenses before the project moves forward. The flow at the bottom reinforces that capital projects don't end when construction is complete. Every project moves from planning to building to operating to maintaining. This policy ensures that we plan for all the four phases. The result is better cost control, stronger oversight, and long-term financial sustainability. Next core objective is to institutionalize continuous improvement through the creation of a permanent efficiency and innovation division under the budget function. The city will ensure that principles and strategies described in this study remain active tools of governance and rather than static recommendations. As you know, we did give out the survey to all the departments. Everybody came back with some of the issues that we had. Some of the categories were staffing and retention. It's either hard to hire people or to retain them. Outdated technology. We do have legacy systems and manual operating systems. Interdep departmental coordination. We need to work better as a team in order to make sure that services moves smoothly. We have procurement and contract delays. We have aging fleet and equipment. We have some training gaps, duplicated functions and revenue and fee misalignment. So how are we going to implement? The study proposes a phased councilg guided implementation roadmap which will emphasize stability over disruption alignment with existing year and reports and continuous improvement as a permanent operating principle. Efficiency is positioned as an ongoing governance discipline, not a one-time study or a corrective action. So what is the progress plan? We have some some areas that we can implement right away within the zero to six months and then of course there are some fixes that will take a little bit longer. This slide outlines how we move from analysis to action. who separated improvements into what can begin immediately and what requires longer term structural work. On the left are improvements that are operational in nature and can begin within the next six months. Standardized workflows. We can begin by implementing consistent processes across departments. We want to make sure that every department follows the same rules. It's not by department but rather a standardized workflow. Crossraining staff is important to reduce service disruptions and ensure continuity when employees leave or retire. We want to make sure that if somebody has a lot of institutional knowledge that it's conveyed to somebody else and it doesn't leave when that person leaves the position. Clear project ownership. Assigning clear accountability for projects reduces delays and prevents mis deadlines. A good example is a sports complex. That project involved engineering, parks, utilities. It involves a lot of departments and we need to make sure that one department takes the ownership of it and takes the lead and coordinates all the work that is being done. And that takes us to the next one which is improved coordination. And that way departments work together and not in siloed. On the right are initiatives that require planning, policy adjustments, and budget alignment. Technology modernization, upgrading systems, improves efficiency, transparency, and datadriven decision making. Right now, I know we've already started implementing subtechnology, but since these do require budget um updates, I mean, it requires us to use monies, we got to make sure that it's properly budgeted in order for us to move forward with these. The workforce classification and review ensures that compensation structures are aligned with operational needs and market realities. We need to continue the seagull study. It can't be we did the study one time and then we forget about it. We need to ensure that staff is properly paid so that we can retain them and we don't lose the knowledge that goes with them moving into the private sector because it's a better better more money rate. Capital planning alignment. Improving how we prioritize and plan capital investments enhances long-term sustainability. Shared service models. Evaluating shared service opportunities reduces duplication and strengthens consistency across departments. A good example is grant management. We currently have a lot of departments that are applying for grants, but we need to make sure that we follow the standardized workflow and that everybody follows the same procedures coming before council to get approval to go get the the funding and that all the procedures that need to take place are followed by standardizing the workflows. Of course, these initiatives take a little bit longer because they affect structure, systems, and budgeting. So, >> if I may. >> Yes. Go ahead. >> Quick question. Can you go back to the to to that uh I don't know if it's time to ask questions, but it's just real quick. Can you go back to the slide? >> Which one? >> The one where the one before. >> So, where it says uh No, after that one is it? Oh, sorry. Go back. I'm sorry. >> This one? >> That's one. Cross training. When you say crossraining staff, does that mean training like staff, individual individual staff like people that that have been working there for the longest time and let's say a supervisor leaves or isn't and you know out of for any particular reason is are they going to be trained as a super to become supervisors >> and is is that the way we're going to start retaining or growing our own staff from being, you know, regular maybe from an operator one to an operator two, which is a bigger, you know, higher step. Are we going to be training them to do that or is it or is it u is it just going to be you know waiting for them to to get you know more experience or they they're going to have to go somewhere else or we're going to look for another world another pool of people that apply because what I've heard I've seen that through cross training which is which is awesome cross training you know learn you learn about everything but at the same time learn about supervision you know it's something that's going to help with our our staff. Now, if we're going to do that, are we going to are you going to be implementing to people growing within the city? Because if they don't get the opportunity and we open up the, you know, the applications and it's we go back to the same people being the most qualified, but we have these these people trying to, you know, being crossrained and then we hire somebody from the outside. Well, what is it, you know, was it good for for us to be crossing and we're not going to hire our own people? So, that's just something that I'm trying to put out there. >> Yeah. >> And and I spoke to management about this before >> and and mayor and city council and I council member, let me I'll answer it a couple different ways, but I and I'll keep it on the broad level for that because cross trainining itself does not get you exactly where you're going with that. There is some succession planning within that. >> Actually, it does because you start learning about all different departments and you're you get educated yourself >> by time you become a supervisor. So the idea about the cross trainining is is that if we have um if we have limited personnel in one uh sector that that are covering that when you lose that person for any reason whatsoever if you don't have somebody to plant back in there that's cross trainining so that so that within a departmental structure they can actually uh do each other's jobs to a certain level. The succession planning with what you're talking about as well too that is a part of the mechanics of this entire thing. It's not actually listed in the efficiencies, but I am I'm a proponent and we've talked about this as well too. I'm a proponent that we have to train our own. Now, the challenge we have is that if we have an employee that has not um had an opportunity to get training in order to take on another role, that's in my mind that's a system that we have. The city does provide for educational training. they provide for for upticking of of their skill sets and everything because what we want to try to do is we want to take our most tenured people and you know employees grow a lot of different ways. I mean just look at the diversity on the council as they how each one of you have grown through your career and everything else. So the idea is to keep all the avenues open. So somebody that was able to go to school get an education everything that's one path. There are others that go and I I I guess it took me 25 years to get my bachelor's degree, right? I mean, I I took a different path. I didn't I didn't stay in school. I I started a family instead. And we have a lot of employees that are at different levels of that. So, the idea about this succession planning is is that if there is a desire for that employee to move up there, then there's this relationship that happens with the city and the employee. Because if the employee is not willing to devote time to improve themselves, then it's very hard to say we're going to let you take on a different role, right? And so we're trying to balance both of those out there. So, uh, we have built into our training u policies and everything that we do provide for any types of those levels of training, whether it be certifications, whether it be the training or whether it be just on the job adjustments. >> Well, and and going back to that, is there any way um that we can let's say I understand about the education and getting into the education and you know you went back 25 years is there any way that we can implement something into our system into our city that says that we can promote you can start promoting if you start taking exams as as as a department instead of just going and say well you got to go back to the school and saying you got to you know spend so much time as it is they give a great service to our community. They spend a lot of time out there. You know, maybe they don't have the the the resources to go back to school, but they've been in, you know, dedicating their their time to to the community for the past 15 20 years. So, I'm saying 15 years. And if there's an opportunity that we can give them ex give them an exam to be crossrained, correct? Because if you want a supervisor, you want a supervisor that that might know everything across the board because, you know, you're talking about troubleshooting, you're talking about, you know, whatever whatever uh uh situation they they they they come upon, you know, they can they can assess the situation because they've been crossrained from the from the from the bottom to all the way to the top. So is there any way that we can do instead of just tell them go go back to school is there any way say you know what there's an exam that we can you know as as as as a as a whole city come in do the exam if you pass the exam then you get you can you can promote >> yeah and yes there is and and actually I thought I supplied all the council within the last month or so uh a policy that actually recognized our tenur employees exactly what you're talking about that have been here with us for for a while. We have a structure as to how to coordinate that tenure uh behavior. Just keep in mind though that as we go looking for employees to do the job, we're going to select the best qualified person at every time. So the idea is that but we just want to make sure that our internal candidates have the best chance to be the best qualified for those positions as well too. Exactly what you're talking about. I just want to make sure I I preface within that conversation for that. But but the intent is is that we do have we we've already adopted administratively adopted the policy within that structure that a tenured employee can be looked at for these other positions within this control thing. Now as you move up in the organization there is at least there there is a precipice or there there's a point where you have to have the education there there you we have to get you got to get you back and get you the education. But in my mind up through some of the supervisor levels in that third or fourth tier of the supervisors and everything education is only one part of the there there's some some experience that overseas uh yeah no and that's the thing is that there are some individuals out there because of their life choices did not go to school. We have no we have we are going to find a way in order to incorporate them in there. I think I think this policy update that we've just done administratively will help with exactly what you're talking about there because the idea is that um I there there's something about technical skills and the heart >> and if they can find the heart we can always teach technical skills. I mean and so the idea of our whole structure so we will send somebody back to school if they need a if they if they're willing to go get a degree we will help them get there. All we ask for is a return on that investment uh and we can get them there. If if it takes an exam, if it takes a certification, all good for that. I believe that the policy actually adopt that we just adopted for that based upon our conversation as to try to recognize these tenured employees that grew differently than a regular traditional, you know, get out of high school, go to go to college, go up through the system. I believe that we we we've done that and I I think we can get there. Um, I'll I'll try to figure out a better way to explain it so that you're you get that comfort level of where we're at. >> And just to add to that, um, I'll use utility as an example. You have your plant operators that obviously they don't have formal education, right? But as long as they the the city will pay for their training classes once they move to the next license, they automatically do get a pay adjustment and now are considered same. They go from plant operator one to plant operator. So they have the ability to rise without having to go get formal education. And the city will pay for the training, the classes, but there are requirements that TCQ does have that says you must have worked in the industry for so many years first. And now that you met that requirement, you can now move to the next step. So they do have abilities to move up the ranks so to speak within their own within the department. >> I do have one question. Is there during the training process a motiv motivization? You motivize people to to have pride in what they do not only just because they want a job to have pride in what they're working how they're doing their job or what who they're working for. I think uh do we have any sort of training there? I think that would help. I know that the human resources department has been providing a lot of trainings and they they everything from emotional intelligence to leadership skills to managing um the art of negoti mastering the art of negotiation. They're offering a lot of trainings recently and I guess Carol can >> if we can look a little bit into motivational speed teaching the the reason they're here the pride they would have to work for the city of that I think needs to be instilled so they'll be prideful to work for the city and do a better job >> mayor. Yes. So my question is do you did we did do the study of why we're not retaining people besides you know we you were we talking about retaining did we did we do the study of why we're not retaining people why are pe why are people trying to leave because as as far as I can remember I remember everybody trying to work for the city now there's not I hear that we don't have enough uh applications for certain positions So, what is it that we're not attracting? That's what I'm trying to figure out. If we're doing this, it's like what are we try what are we not attracting? Are we not attracting? You know, I just trying to figure out >> I think there's a lot of competition. I'm sorry. >> Yes. Go ahead. I think what is saying is that there's we still have some barriers to entry issues for um you have a technical degree technical but then you apply for a position that requires a bachelor's in business so you're automatically disqualified even though that degree is not necessary for that position. And I think when it comes to the whole driver's license issue that we had talked about before, I I think we have a problem with people at the point of application when they apply, they automatically get denied and we lose a lot of good people and a lot of people don't even get an opportunity to enter into the city because right now we're talking about them ranking up, but they can't even get in. And that I think that's one of the reasons why we don't even have a valid applicant pool is because we have some glitches I believe in our in our requirements where the degree is business for like 90% of the positions or if it's a position that they could train up into with experience or requiring a bachelor's to get in and at the beginning then then they're not even going to get considered >> and some of them do require the bachelor's plus experience. So sometimes we're almost kind of the people that come straight out of college don't have an opportunity because they you you have the education, you just don't have the experience that's tagged on. So I think that's something that perhaps um at some point in time maybe the policies or how we're advertising the positions or the requirements to each one because there's a lot of people there's a lot of good people that come out of college but they can't apply because it's education and experience. >> Mayor and just that they can't apply, it's that they do apply, but the system automatically kicks them out and they get an email saying you did not meet the minimum qualifications and then we don't even know who these people are because we don't track >> the you know the denials. So, and we do have an issue there, I think, in in our process because we're not we complain that we don't have enough people or we're underst staffed and then we're we're not giving enough people or a broader scope of people an opportunity to get in and then work with those people like Mr. Neville was saying, right? I decided to step out here again because we're we're we're broaching outside of what Miss Kantu's job is for for the efficiency study, but I because I like this conversation as well too because we are trying to remove as many hurdles within our structure. Um I talked a little bit about the technical skills in the heartbeat. >> The heartbeat is a very difficult thing for anybody from the outside to understand. Laredo is difficult to find people from outside of its region to come here as well too. It's it's the center of the universe, but most of the people live on the outside skirts of the universe, I guess. Um, but the the idea is we try to get rid of all of those hurdles that are in there. The driver's license was a good one to talk about as well, too. Within our structure, we you know, we want to keep as many people within the mix as long as we can. Understand though, and I I preface this once before, we're going to hire the best qualified for the job at that time. I mean, that's going to be the challenge with that. If we're hiring at multiple positions, and it's the the multiple best ones at that time. We can also tell our our candidates what they can do to improve the the exactly what the driver's license does and what some of you are alluding to as well, too. We don't want to inadvertently cut a potential good candidate out of our mix because a lot of our jobs are very very difficult to get to. But I think all you have to do is look at the uh the candidate the cadet pool for the police and fire. We have you know we have a thousand people apply for a police cadet. We we hire 35 of them right. I mean because it weeds out over time. what you're asking about is trying not to weed them out on the top level. Let them get into it. Let them show that because I I truly believe that it is a balancing. We can teach the skills. We can teach all of those different pieces. And I I think I I may have said this during a couple conversations when we talk about personnel. You can no longer find a person that is qualified in everything we're asking them to do. you they're they they they're you're ask you're seeking the best person for that then you're going to have to teach the other pieces of those skills for that. I think that's the challenge we're all going to have and mayor going into your point as well too. We need to make sure that they understand what the ultimate role is of of a city employee uh all the way through to the technical level again of what their job is as well too and and I think we do that. We've done the recognition programs over the last two and a half years to rate make sure that they understand that we appreciate what they're doing. We just want you to appreciate the customer service on the other side of taking care of our citizens. But we won't we won't cure all of that today. I'm just that's why I got up here as well too is that but I wanted to make sure you understood that HR is we are shifting our models. We are shifting our policies to keep the door open longer for every one of these candidates. And then we're going to try to get down through that. At the end of the day, the director of those departments will make that initial choice for those departments. I get involved at at certain times for different pieces, but it's going to be that director for that service that's being provided. I just want to make sure you understand our mechanics within that. >> Thank you. Well, thank you for that because I do think, you know, uh, council member Pettis brought up a valid point that you we some kids go off to school. We encourage that, right? They go and and they go to universities either here in town or or outside and get wonderful life experience and then when they try to come back, they do find it hard to enter into they have a love of the city. they look to the city for um hiring and and they can't seem to find their way in because of that experience. It's catch 22, >> right? >> Um and so I don't know if there's a way to have an alternative listing if they are bumped out of one category that they think they're supremely qualified for, but to have an additional listing while you can get your foot in the door with these additional departments. Maybe it's something you haven't thought of, but we see that there are skills just from your ability to persist and get this degree that we could offer you a step in here. And again, providing that initial experience that so many of these jobs require. I don't think anybody here wants to lower our standards. We do want service to be provided to the best of of everybody's ability, the city's ability, but at the same time, we see such a brain drain and we want to make sure that our kids have the opportunity to stay where they want to come home to. >> Well, and it goes back one of the things that council member Press says that I want to also address as well too. When I look at people with degrees, even myself as well too, I don't look at the degree as what what the degree is for. bachelors in business administration, masters in business administration. What I look at is that they completed a goal. They completed something. They went after it and they got they got that done. Not everybody walks within that cycle. But I also want to make sure and and this this goes into a whole different conversation which that's why we'll have to get out of this conversation. The generational attitudes of our of our employees as well too or our potential employees. We have we have individuals that are coming right out of college that are asking for director level positions. And now they may be they may be uh educationally qualified for that, but they have no practical experience as to how they're going to manage 200 people or or 50 people or anything. And so those are that criteria that we have to kind of watch for because it's like when they come out of school and I I've seen a few of them. My my kids are probably a couple of them as well too is that well I want I want what you're making. I want to be up I want to be paid that high. And it's like yes you want you want to be paid that high but go cut your teeth. Go go go learn learn some of the skills and everything and you'll be taken care of as long as you perform appropriately within the system. I think that's the other variable of this as well too because we've had we've had some candidates that we can't bring on board because of the because they they they expect a a much higher level of pay than what we're willing to contribute for even the ones that we currently have on there. >> Yes. I'd like to say something before. Is it possible for the city to provide some kind of mentorship or internship? So people that we have a lot of great candidates but they don't have experience >> and they could potentially be trained as an internship or mentorship that would amplify our resources of having all these people. >> Marian yes sir there are methods out there in order to get to that level as well too. I think we utilize some but not to the level and the magnitude of what you're talking about. I think that'd be a good thing as well. >> We can explore that. >> Yeah. Go ahead. >> We're not trying to go, you know, sideways with >> No, it's good conversation. >> We're just trying to train and then work force clarification and all that. Um what I'm just trying to figure out like you just said right now there are some people and you know talking to some some some uh individuals there are some people that the directors there's employees that know a little have more experience have dealt with a lot different situations more than the directors and yet the directors and they're they're running the job they're running the operations yet the director you know sometimes gets the credit and it's unfortunate Because sometimes and then like when you say um get the most qualified you get the person you get people some we sometimes we get people from out of town that don't know the situations as how it's running here in uh how things run. I'm not saying that about the personalities on none of that. I'm just saying the way that it's it's been functioning for the past year or the change they did. And then let's say we get a new director, they come in and we have a a supervisor that's been running the the oper operations for the past six, seven months and we don't give them the opportunity to become the director yet. But we do accept the whole year or the seven months that they've been running their their operations, everything's been running smoothly, but we're out there looking for a director. Why not give them the opportunity for that person that's been running the operations and say, "Hey, here's your your your time to shine. here's the opportunity to grow and grow within the city. So that's that's what I was talking about cross training. And when you get cross trainining, if you want to become supervisor, my opinion is coming from a blue collar background is like well you start off from the very bottom and you work yourself up. All right. Um and then that in that case you'll know every the ins and outs of of the operation that's going on and you'll be you'll be you'll be a little bit seasoned of everything that's going on or situations that be going on, >> you know. And council member just I digress into it because I really want to address some of the conversation, but we and we'll it'll be a longer conversation, but keep in mind that as we as we select our directors as well too. It isn't just about one leg of that as far as those those skill sets. Uh we have some departments that our conversation between management and the city council has been we need to shift our model and for whatever reason we've we've been slow to shift within that model. So you want to be careful about um advancing something that you're trying to adjust as well too. So there there's a balancing act. That's all I'm really saying is there's a balancing act in there. We are we are selecting very qualified individuals for all of our jobs. I'm I'm not please please understand that for the directors all the way through there they they may not be the full package for different legs for them. It also is the thing that um we need those individuals to express interest in the job and it's not when the job comes open is the best time to express interest. Say this is my goal in the next five years. I want to be in your seat because with that we can then plant and pro say this is the plan then this is your advancement. I I need you to go get a degree if that's what it's required. If you don't need a degree here let me show me these things. We have taken other employees and put them on projects for different things and and said, "Show me what you've got. Show me how you can do this work." And I think those are the opportunities that we have to work closer to the employees. Now, if the employees going to sit in their corner and and not express what their goals are, it's really hard for the city as an organization to say, "Let's advance you or let's let's get you into this advancement model." And I think that's where we break down a little bit. I think that's where the city loses that that that that process within there. And I think that's what HR is trying to bring within that. I I would argue to a certain point when we get through some of our standardization, I think we lost some of that ability to adjust for the heartbeat rather than the technical skills and and we're going to bring some of that back. >> Mayor, if I may. >> Yes. Go ahead. >> Mr. Ne, I appreciate the explanation. I think one of the things Councilman Rhett and I have discussed is that there seems to be a sense that we're looking outside the city when it comes to higher level positions instead of looking internally. And maybe that's not the case, but that's the perception. And so, um, it's almost like, uh, there's no incentive to work your way up because once you get to a certain level, they're going to look outside forever for for a director or whatever. But, um, just point out a contradiction on when you said that having a four-year degree shows that you completed something. I agree with that. However, there are people that have psychology degrees, criminal justice degrees um >> you name the degree, but then they get denied because they don't have a business degree. I think that's the barrier there is that if we can be more flexible, if our philosophy is that a degree means something as far as like your effort and completion, then our then our application process should be in line with those policies. And I don't think we've gotten it quite right yet because I think we've lost a lot of good people >> have been denied for positions because they don't have that bachelor of business even though they have a bachelor of something that they can go in there with that bachelor for that you know because they've completed that degree and we can train them into whatever or maybe they possess the other skills except that's the only missing component and their application is kicked out. And council member, I agree with you. And I I think my my intent was to express that I'm right there with you for where that's at. And you know, and and I will take it just a little bit farther because there are certain positions. >> I cannot hire somebody for an engineering position that does is not an engineer. I have I mean, you know, and so I I think everybody understands that I can't hire a doctor that's not a doctor. I mean, so but I think exactly what you're talking about these uh these multifaceted type of degrees like business administration, they they they cover a lot of different points and that's where I was trying to make sure you understood my viewpoint on that as well too is that I like it that they they achieve a goal. They they set a they set a path because we can teach all the rest of that stuff on that. >> You got Yeah. I just wanted to give you an off. >> Thank you. I can see we just didn't put the blinker on to get off. >> Oh, it's it's a good conversation though. I appreciate >> Well, I mean, well, look, I think we're doing it in my personal opinion, we're doing it right. If you look at the structural systems that the fire department and the police department have and the reason that they're good at what they're doing right now is because their life depends on it. We are looking for the best and the brightest. There's just no other way around it. for me we you want to survive as a city if you want to move forward we cannot be um reducing our standards to to get that now I'm not saying that but we do have those people in line right now but in order for for look at look at what they do at the fire department and police department havemies in order for you to advance you know and we're doing we don't do it structurally from within I still don't know really how our HR department works and I think that's a conversation for another Okay. But but we do need to find out how the process works for advancement and all that kind of stuff. But and and and and believe me, it's going to take another efficiency study like this one, which is by the way, it's good because I'm looking at uh a lot of the detailed information of of of the uh the challenges that we have. But I will say this, I I will say that, you know, in my mind, it's difficult, you know, when we say we can't find the best and the brightest. for me to say this is sometimes it's difficult for us not to find the best and the brightest here in town. And that's why we need to go nationally or or Texas or whatever it is. And and and it is because it's it's vital. It's vital that we put the right person in there, not the semi-right person, the absolute right person in there. And so, uh sometimes it's very difficult. I mean, our our police chief tells us about, you know, their testing and and makes it more difficult to get into the police department sometimes than at customs or anywhere else, you know, or our fire department. And the reason for that is because again, their life depends on it. So, they need to have somebody that's the best and the brightest to bring in. So, um there's a lot of uh a lot of conversations to have from within our structural system, within HR, and I think we need to have those. I just think that uh like you said, we're not going to solve that today. Uh but that was very interesting back and forth and and trying to figure those things out. >> Yeah. Let me let me share just one little bit and then I'm gonna bring Mr. Spars up because I think Miss Ku has finished her work as well too. >> You haven't done >> uh but Oh, go ahead. Yes, sir. >> Yeah. I don't think the colleagues are trying to reinvent the wheel. >> No, they can't. Uh I know education key uh and we there was a perfect example of the planning and zoning where we had the most experienced uh director poly in all of South Texas uh but he he wasn't uh he was lacking a a credential for for years right and well uh he had to be let go and then Miss Gerra came in and being educated in that proper field and and the city hasn't lost a step uh so yeah like I said if we go to a hand surgeon I don't know if you want to get the surgery from, you know, the one that's seen the surgeries, hundreds of surgeries, or the educated that was trained in that proper field. So, we understand that education is key. Uh the only thing is flexibility. If we can iron out those uh you know, those those uh hurdles for for you know, for staff in advancing or maybe you're doing it the right way. Uh I know uh our administrative assistant just went back to school. She's very very experienced, probably one of the most experienced uh and and she's going back and and she you know she wants to advance and stuff but uh implementing that also is the spring. >> Yes. Go ahead. >> Yeah. And I agree with with with council member our our our assistant is very you know she's very experienced and but yet she didn't get the the opportunity or they gave her the opportunity to grow or to get you know get her higher pay because the reason was go back to school. Now, she's been there been here what 15 20 years now. What you can't compare we can't compare departments. I've been hearing the fire and fire and police. We can't compare that to any the to the department. It's it's a totally different situation. You got people with guns and running into fires, but people are doing, you know, something with with their and and less and less dangerous as what we're comparing to public safety and, you know, everyday operations. It's totally different. So, that's what I've been hearing back and forth. You were comparing it. We can't compare because we got a person with a with a handgun and running into fires compared to a department that's you know doing a structural work doing infrastructure and doing all that. That's totally different. >> I'm I'm going to disagree with you though a little bit because I believe that it is a city employee as the ultimate structure because just so you know we are not hiring fully developed police officers or firefighters. These are kids out of our families from this from this organ this thing. We are creating that body exactly what you're doing when they come on board with us we are taking care of them that nation that's the other >> you will agree with me at the same time that they promote within years and they take exams within the structure to grow to become investigators sergeants lieutenants >> so it is it is it is how the city actually grows their people no matter what the role is >> I I'm a firm believer that every city employee they have a very important role with the city now some of them carry guns and some of them do not. I I I'm not discounting that. What I'm saying though is that we are trying to make sure that those individuals are all the best people that we that we can have for that. So, I don't disagree with you to that level. But, but I I would argue that um every one of these positions are important otherwise we wouldn't have them in the first place. But I I also want and I also want to make sure that I everybody understands and I can show you and I think that's where council member pros went as well too is that we hire the best it whether it be from the outside the inside all that we look at all those pieces I I truly believe the heart in the heartbeat I believe that the closer that they understand what Laredo is is the best way to do that there's not a lot of us from that come from the outside that can learn the heartbeat because you know I mean in a lot of cases people say Well, Larredo is not San Antonio. I mean, it doesn't have all the amenities there. All right. Well, but it has its own amenities >> and that's where I think >> and and uh Mr. N also at the end of the day, I believe that's why there's two or three final interviews because that's where you make the tough decision uh and and uh and and and balancing out or saying, well, what's more for this position? What is more suitable? >> And that's that's again that's when why you have the the interview process. And I will I will tell you 2,700 employees that we currently have, every one of them are the best people to have for that job today. I we can we can argue about getting better. We can argue about a lot of different things, but I want to make sure that I I provide that support for every one of our employees for that. Let me bring Mr. Spars up because I wanted him to share some efficiencies that we are moving into the budget conversation so that and then we'll close out this this item. Mayor. >> All right. Y Honorable mayor and council Jesus para with the budget department. Um I want to take a minute and just wish you a a happy birthday and a blessed day. >> Thank you >> and I am excited to be here to present the FY2627 budget strategic meeting. uh we are going to talk about certain uh strategic ideas that we have into our our budget as we start. We are also going to me uh touch a couple of items that talk about the incorporate some of the efficiency studies that Miss Cantu mentioned and some of the items that Mr. Ne mentioned as well. First item I want to cover is the budget calendar that we have. February is the kickoff of our budget process. However, we do start prior to that. Uh we've been working since December and January in fixing the the system for our in preparation for our budget process. As we move into March, we're going to be working uh with the internal service funds. The reason we look at the internal service funds is this funds get their revenues from departments from within the within the city which is our general fund, enterprise funds and our special revenue funds. Some of the key issues that we look at the internal service responses are are our rates that we have. We have our health and benefit rates that we are going to be looking at. Uh we're going to be looking at the rates that we have for uh our fleet department. We're going to be looking at rates that we have for our insuranceances. Those all those items are critical as we build our expenses for the following project. We're also looking at revenues. uh department start looking at their revenues as well as we start looking at the general fund revenues from the budget department. We look at property taxes and sales tax. We also started working on the payroll projections that we distribute to our departments. This are uh budget makes a live copy of the payroll that we have for the city and we disseminate it to our departments where they for their review making sure that everything is in correct with their benefits and number of employees and so forth. We do have our first tentative meeting scheduled for our budget workshop meeting uh on March the 25th. This is a tentative date. We will be working with council and management to uh uh make that date uh a hard date. Uh we will be doing a part of the strategy that we have this year is to mimic what we did last year with the multiple budget workshop meetings. We have three of them scheduled. Uh I think they worked very well. It allowed council uh to receive some input as to where we're doing and for us to receive some direction from council as the things that you want to see incorporated in their ideas and different programs and and so forth. As we move to April, we have our expenditures. Our department start working for their expenditures. We have their payroll reports back with our personnel. Personnel very important. is makes up most of the budget for most of the general fund um departments. April we start uh having the preliminary fund summaries uh that line from our departments. So we can now start seeing revenues and how they're matching with their uh expenditures. April is the month that we have our preliminary web appraisals. This is where we get the first look at our uh appraisal that are coming in and helps us project the property taxes revenue for for general fund. We move into May. We have another tentative date March May the 13 for our second budget workshop followed by June. We have performance measures due by our departments. We have the final funds for coming together. We have a third budget workshop scheduled tentatively for June the June the 10th. As we move into July, we are looking at and this is based on some of the conversations we had last year. It is a tenative date. We're looking at July 22nd for the submission of the budget and CIP to council. Uh we will be publishing the proposed budget and CIP summaries. We publish a notice of public hearings in local newspapers and we get in July, approximately July 25th, we get the final web appraisals on what the uh final appraisal values are for the city of Raido. We have on July 29 our final budget workshop and we have one day scheduled since we are going to have multiple uh workshops throughout the year to keep uh council a breast of what the latest developments on our on our budget. As we move to August, August 17, we have our public hearing introduction of our ordinance. At that point, August 24, we have the tenative date for the notice of tax rate that needs to be that needs to happen between August 17 and September 8th, which is our final reading in September. So this is an overall tentative calendar as to what as we start the budget kick up and put some of the dates that we have in there for council to consider some of the states budget strategy for 2627. These are some of the strategies and working with management as to what we're trying to do with the budget this coming year. Our main uh one of our main objectives is to continue to control the growth. Uh has been discussion in the previous two uh uh presentations that we've had is that we are controlling that growth. In the past, you know, uh that growth had been in double digits. So by us limiting now and focuses focusing in on the revenues, we are controlling those growth to a to a point. And the reasons for this is we're prioriti how we're going to achieve this is we're prioritizing core services and essential expenses. We're aligning spending with revenues. We're evaluating the use of reserves and fund balance. Potential revenues. We're reviewing all ordinances that we have for general general fund is specifically talking uh to address uh some old ordinances that we have that have not been looked at. We're also addressing our revenues the inflationary cost impact that is having on on our revenues. We're considering comparable cities practices as well when we look at this revenue. So this is in conjunction of budget department doing this. This is what we're asking our departments to go and look as well fund balance. We are progressing towards the 25% fund balance that we're trying to move from our 15% minimum. 15% is our minimum but the the financial advisor our financial advisor are most of the cities now are moving to a 20 25% fund balance in our general fund some of the items that were uh that were mentioned earlier were a couple of resolutions one of the ones that we're looking at because of the efficiency >> have a question here >> Mr. Spa I'm sorry if we could go back to the budget strategy for FY 2627 is Is there any consideration for and I know this is election year, campaign year, it's crazy year, but the governor right now is suggesting that he may dramatically decrease the ability for the city to collect taxes. Um, and I have personal feelings about that, but is there any consideration in these proposals at this stage? It they are a campaign rhetoric, so I I don't know how seriously we should take them, but it it does it will impact us if it were to come to realization. >> It it would definitely impact if it comes to realization, and that's an excellent point. And we we are constantly monitoring uh that last year there were a couple of items that went through the state legislation where there was an attempt to reduce that three and a half cap even further. And I I I agree with you. I've seen some of the uh items that are out there talking about even reducing it more. So it that would have a definite impact on our our number one revenue for for the general fund. But we so we keep we we monitor that and if that should happen, we would need to make the appropriate adjustments to to balance our budget. We we'll have a balanced budget one way or the other. >> And I think yeah, just piggybacking off of that as well too. We we did not develop out a full strategy for that even the last time. It would be probably be good to understand that because the only the only change you have if we keep if if they reduce our ability for that revenue to come in at a different level, then we have to either increase other revenue sources in order to offset that or we're going to have to reduce our expenses to get down to that level. And and I don't mean to suggest that we should participate in an election hearing at all, but at the same time, I think as a city, we should discuss what the real impact that that would be on our city finances and more than that on our city services. >> Yeah. And I don't disagree with that. I think that that that strategy is very important. It is not about telling them whether or not it's a good thing or a bad thing. It's telling them about what the impact is to Laredo for whatever they're whatever they're looking at doing. I I there's nothing wrong with that because again that you know that that property tax is our number one revenue source for that. We actually believe that we we're fiscally responsible. I mean we we we've held our rates for so long right where it's at. We we don't we don't ask for stuff that we don't believe we need. And I think that's something that it's lost on the legislature at times. And so but we have good people up there and I think that our representatives can help us with that. But I think we just have to tell them what the impact is >> exactly. Thank you. >> Yes. Go ahead. Um this is for staff and Mr. Esarsa. Speaking about the budget in particular, last year in the past two years, staff, budget people, I don't know who did it, but I want to hear from the departments and their needs, all their needs. I don't want staff telling them, "Don't ask for this. Don't ask for this. I don't want to hear this. I don't want to hear that. I would like to hear from the departments and what they actually need their wish list so we know exactly where we stand not them holding back or hindering what they need and not telling us and we don't know about it. So I would ask that maybe second third budget meeting um every department to ask what they need or what they think they need and then we can make a decision on whether we're going to be able to fund it or not. Right. >> Yeah. and and and mayor and council member, I I have no problem with putting that out there. Just know that as we've discussed, the amount of new revenue that we believe we're going to generate, that's going to be the controlling factor in that. If we want to provide additional funding for any other department out there that's in the general fund, that means there's less for another department. And so the balance, but I don't disagree with you. >> I want to make sure just so we know exactly what they need or what they feel they need. And then of course we make the ultimate decision whether we can fund it or guys I'm sorry you're gonna have to wait till the following year two years down the line whatever it may be from there. >> The the intent is to always build toward what the revenue sources are. >> Sure. Absolutely. And but we yeah and I understand exactly >> and I'm sure the directors understand that too. We're on a budget like everybody else is but uh yeah we just so we >> I think some of them have been very creative in their structures. So yeah happy to do that. >> Thank you. Appreciate it. >> All right. Go ahead. The uh next this slide has the grant management resolution that we're looking for. This was uh we have a couple of resolutions that we're going to uh talk about. The grant management resolution was one that we started last year and it was we were not able to bring that one forward but the grand resolution's purpose is to promote transparency and accountability in all phases of grant management. We want to mitigate operational and financial risk associ associated with external funing. We want to ensure the term substantiability of grant supported programs. We want to align funding pursuits with strategic capital and financial plans. Some of the requirements for this will be authorized authorization from the city manager office to apply for grants, cost sharing matches and long-term funding view reviewed by budget department, city council and city council authorization. Some of these items we we currently do uh we come to council for the uh applications for that. We just want to now have these resolutions so that we have a guidance for everybody to have and and follow. This is also a GFOA best practice that we have. So by us now coming up with this resolutions, it just follows with our GFO uh uh best practice. the grant management resolution. Some of the items that we have is plan first, get approved before applying to grants, know the cost, identify match staffing, and long-term expenses. Some of the grants when we have them require us once we expend it to continue doing certain reports, certain trips to do that. So we want to capture all that information when we consider those grants for for approval and make sure that we know the extent of the uh requirements that are required from some of this man uh grants partner responsibility clear role and agreements and accountability and then council oversight approval required for high-risisk or long-term commitments on this grant that we're getting. we we have a limited number of dollars that we can do as matching for grants out there. So, we want to kind of make sure that we're getting the best return on our investments for this. So, this grant management resolution will be we will be bringing forth for council's approval or review uh and provide us some input on those on that one. The other item that we're having is a CIP CIP resolution, the capital improvements plan. This was also mentioned in the efficiency report. The purpose of this process is to guide the identification, evaluation, and financing of major capital projects formally adopted by the mayor and city council reviewed annually to stay responsive to the community needs. We led by the city manager with the active participation of engineering budget finance departments in collaboration with all city departments. This is something that we started two years ago when the the CIP was put under the engineering department. So in our resolution, we would have some of these purposes and processes. Some of the benefits of this would be clear assessment of local needs, alignments with community interest and long-term goals, promotes financial stability, enhance collaboration in city governance. How it would work? We would identify infrastructure needs, rank and prioritize projects, determine funding source, monitor the progress and report to council and adjust annually through the budgeting process. One of the things that we're improving in the process that we have in the CIP was mentioned by Miss Ku in the efficiency study is CIP had a lot of the projects that we we wanted to do there but a lot of the MO not the full amount of the M was in there. So we want to make sure that when we look at a new building that we're looking at what are we paying electricity? Are we going to need custodians? Anybody to maintain the building? So all of this will be in or we're we're constantly improving this and now it would be now part of our CIP resolution that we will bring forward for council's consideration in the near future. This slide wanted to touch base just on the general fund for month actual. Just want to kind of make council aware of where we're at right now. The left table on the the table on the left in blue has the period budget. So this is the budget for four months for the general fund revenue line items. From the left we have taxes, licenses, intergovernmental revenue, so forth down the line. The next column in the middle says period actual. That is what we have received as of January. And then the following column is the budget versus actual variance. So, one of the takeaways there is that taxes, we are short 4 point four about $4 million in our taxes right now. As we look at licenses and permits, we're about 852,000 short. Intergovernmental revenues, we are 340,000 short. Charges for services, we're positive 318. And as you go down the line, you see the line items that we have, either positive or negative. The last item in there, other financing sources, that is our bridge transfer. Uh we are 929,000 almost a million dollar short in the first four months for that transfer from bridge. >> Mayor, can >> go ahead. >> Uh taxes short is what's the reason? Is is it that we're we're pending people are pending collections or is it that we're not going to expect to have that? the expectation is less like what is the reason for that? >> We we expect to collect we normally collect about 98.5 our of our taxes. We expect to collect them. One of the things that I'm noticing or in some of the conversations that I had with taxes on on looking at the shortage in there is that we see we see citizens taking advantage of the double payment. So, as we continue to monitor that, um, I'm I'm pretty confident that that revenue will be coming in in the following pay periods. Normally, within the first pay period, we get about 84%. And I have a slide specifically on the taxes to kind of look at how we're getting that through the months, but I'm thinking they're taking advantage of that second payment, uh, the two payment breakup. And so, that that is kind of changing the flow of how we're receiving that. I can answer her question as well too because I I don't really like the word short as as our finance our budget director is actually sharing. >> All of this will catch up throughout the year. So it is about the it's about the collections as when they come in and when they when they hit our books as well too. So this is a fourmon total of a 12 month year and so those those numbers will actually catch up. What I think what's good on this slide is showing that even though our revenue is down by about five million, our expenditures are down by about the same amount. >> Yes. >> So, this is just a it's more of an accounting structure and I I think that's where a council member was headed with this is that we're not in any any rough shape of this thing. It's just the way the collections come in. And so, it's understanding exactly how this money the revenues move in and the expenses move out. >> Mayor, if go ahead. >> Yeah. I think Because if you look at it on face value, it causes alarm because it looks like, oh my goodness, we're we under, you know, we we over hit the mark and we're, you know, we're way off, but that's not the the reality. So I and then Mr. Neb, your point about expenses being down isn't even reflected on here. So I think we need to see a comprehensive picture and I think if you're going to present data like this to us, it's important for for it to also come with that information that says like is is this a normal thing or when are we going to be are we are we is this in line with how we normally calculate things because just giving us a snapshot right now it looks like we're down on everything and it's a little misleading. >> Well the the uh the item The purpose of me showing this slide is just to keep council ab breast and and and the public trying to be transparent on where we're at right now. It I I would agree with the with the city manager is not cause for alarm. I don't want to alarm council or any of our citizens that we're not meeting our revenue. But I do point that at the four month which is very early because we're four months out of the 12 months. We are technically at a 5.9 variance between our budget to actuals. Varian is a work that really should be used instead of either negative or positive. It's it's a variance that we have as it relates to budget. >> Well, it's important to have a table that shows how much we're expecting to collect and how much we're pending to collect, not just that we're short. >> Okay. >> You know what I mean? >> Yes. I I would be happy. This is the first time that we present budget presents this kind of slide. So, I'm trying to bring to council things that may be useful for you all for the for the c the mayor and the council to to analyze and be aware of. So, I I'll be happy to add any I'll add those columns in here for future presentations. >> And mayor and this did match up with one of the council members that asked for some of this detail and I think that's why we put the slide out there was so that everybody could see the same information and data and at least get the proper explanation as to what it is. And and just to touch on the uh really quick on the uh uh right table on on on the side we do have it broken down by the types personnel materials contractuals. I think my takeaway there to point out is the most of that 5.9 uh potential uh variance that we have which is a positive variance that's a savings we have so far which is offsetting the negative variance that we have on the revenues. Most of our savings is in the personnel. 2 point three million almost $3 million of that savings is coming from personnel savings that we have. >> Just really quick, um I have the property tax revenue breakdown for the four four months, October, November, December. Um that's a 3.2. We've collected 84.42% 42% of our total uh property taxes of $98 million at this point. So, the majority of it has come in. Like I mentioned, uh we still have the remaining uh eight months that we have to receive property tax. The right table just it's a bar chart representing those same numbers in in a bar chart. Our second largest revenue for general fund which is our general u sales tax. This is the numbers of for the sales tax. Uh the budget for the 18 months is $18 million. We have a total budget budgeted of $57 million. Uh we've collected so far 17. So we're about almost a million dollar variance between our budget to actually we're currently about 5% below. >> Mayor, if I may. >> Yes. Go ahead. >> Again, are we is this normal or are we pending payments or what's going on? Is it that just that people aren't shopping as much? >> Yes, the sales tax that's the difference between the budget and the actual that we received. >> Okay. So, we're not actually pending any of these payments somehow. >> No, no, this are coming in. We we uh the numbers that we represent are behind, but this is what we've got so far. So, budget to actuals are keep in mind that this is our budget is 57 million right now. uh we've collected already 30% of that and as we move forward to the next 8 periods we'll be either higher or lows on those. So I'll keep coming back with you and giving you reports on that as we go and I'll add the other. Next slide is a bridge transfer um which is directly tied into our tolls and our resolution of 50%. So the four month is 14.5 million. We've collected 13.5. So we're approximately a million dollars short in the total bridge crossings revenue that comes in from bridge gender. So far we've collected 31.19. We're about 6%. Right side has the same information in this is a slide that I guess that was uh asked for in previous meetings that we have. This is a cityo overall percentage of total market value by category. This is a slide that we get from the web county appraisal. This is last year's 25 preliminary numbers that we get. But the takeaway here is just for for council and and the audience here is the total taxable value for for the city is 26.5 26.6 billion. And the pie chart there represents the single family. First one on the top right is our single single family residence and multifamily in red represents 44% of that appraised value there. Followed by the commercial and industrial at 28.11 and then our business person uh personal properties at 8.3. We have XM properties of 12.98. Those are exempt properties that are completely exempt either are veterans and part of the other item that is in there is some of the uh childcare businesses that are exempt from property taxes. This is something that has been asked. Uh if there's anything else that you all want to see here, please let me know and I'll be happy to add it in there. >> Yes. So, do you have a breakdown on the properties as far as what percentage of that percentage is growth versus what is, you know, old inventory subject to that 2.5% cap? Do we have that breakdown where it's like, okay, 49 almost I mean almost 44%. But let's say 5% of it was new growth. The other one was old growth. So the new growth >> if I if I recall correctly from the uh the actual report that we were get from the web county appraise. So we're generating about $4 million of new uh monies that are coming in from uh growth. >> But do you have that anywhere on a slide? >> I don't have it I don't have it in a slide currently. I think it would be helpful for us to see the growth trend because if we're budgeting based on a 3.5% cap, but we see that growth is 5 10% we put a value on that growth then it would help us get that average on what that growth is. >> Definitely can do that. Um the if I remember correctly on that growth uh that 4 million represented about 3% growth uh in those numbers. >> Can we see that on paper please? It would be helpful for especially going into budget for us to have that growth chart and maybe even like a trend over the past four years >> so we can see where where we where we're coming from. >> That one in our next >> right >> be good. Some of the considerations as we begin the budget process that we have in there challenges that we'll be looking at is we have both the PD contract and fire contract coming up this year. We also have our cola uh some of the things that we're looking at. We are looking at one new one which is longevity which is in line with what we were talking about in the efficiency as well. We're trying to cost out the longevity cost for all our non-collective bargaining employees. So what this would do is set up a like a rate per month very similar to what we have with police and fire and so to see if we can execute that this year and and and allow and help our employees reward them for their longevity within the city in there. So that's one of the things that we're looking at and we'll be coming back with you and and looking at uh providing you some numbers as to what this would be the cost. >> Um >> go ahead. Can you elaborate a little bit more? >> So if an employee has been with the city five years, we are trying to come up with a formula very similar to fire please that they get a certain dollar amount for every month of service that they've been with the city. >> So so it won't be across the board, you know, for for all the the employees. It will be >> No, it would be for all our non-contract employees or our regular employees. So if an employee has been >> we have it built into the CBA agreements have longevity built into both of those agreements. So the regular employees of the city the ones that have been here the longest aren't recognized for that 10 year of their time with the city. So you know a 15 or a 20 year employee does doesn't get recognized outside of what their their pay is for their job. My my question to you would that would that change would that change will that change the percentage of what we're you know that you already estimated for the next year budget is that going to change for this year's budget. >> It would not it would not ever go backwards would if we were to establish it would go everything forward at any point in time that it is there and if if you notice on both of the slides it's got longevity and tenure there. What we are trying to recognize because again there's only so many different jobs that we can place people into. We are trying to recognize that tenure for our service so that we don't we to help stop losing employees at different times and everything. Oh, what I'm going to ask this is another thing. It's like we are going to have maybe you're going to have a person that came you got promoted as a direct he got hired as a supervisor and then you're going to have an employee that's been there for 15 years yet they're going to be earning the same amount of of money. The the nice thing about the longevity which is different like the 10 year or the the COLA is a percentage of their base pay. The longevity is based on a number of months. So, if I've been here one year, I would get an amount a certain dollar amount. But if I've been here 20 years, that amount is going to be higher because it's based on the months that you've been with the city. So, it's it's even in the way that they all get the same rate, unlike the the COLA and the tenure, which is a percentage of their base salary. So, on the COLA and the the uh tenure, you're getting 1% of your base pay is the amount that you're getting. longevity. It's the same rate. It's just how many years have you been? >> That's what I'm saying. You got supervisors that are earning so much amount of money. Then you have the this this this employee that's been there for 15 20 years. Supervisor has been supervising for five years and then you have you add the cola and then you're you're going to add the longevity. So that's going to come to the same amount as supervisor. >> It sometimes does. >> So it's you know where then when the supervisor is going to complain it's like hey I'm taking the whole responsibility when we go out there my my responsibility for for employees for making sure everybody's getting proper equipment you know making sure everything is there and then but this employee yet is in earning the same thing as the same amount almost or as you know equal to the same amount that I'm earning so I think that's one of the main complaints that they're going to be you know that's that's what the longevity and I don't have no problem with longevity or the AOLA by no means, but I'm just it's common sense. Okay, you got a supervisor that's been there for 5 years. He got hired for for a supervisor position and is there for five years. Then you got a a person that's been working for the city for 10 years. Well, he's going to get super he's going to get the cola and the longevity which is going to amount the same amount as the supervisor. So the supervisor is like, well, you're earn I'm working and I'm and you and then we go back to, hey, well, I got the experience and I got the education >> and he's earning the same amount as I am. >> And Mr. Me, uh, I and I believe this is where experience counts, right? When when the longevity is there through employees and other entities. >> Yeah. Let me let me we'll put this together in a longer conversation because I this I I love talking about this because we have we have 30-year employees that are actually paid higher than some of the five-year or two-year supervisors. >> There is a difference as to why they are paid to that level. We have a minimum and maximum that we're willing to pay for every position out there. So there based upon your tenure that will adjust you on that scale to a certain level for different reasons. Now, if you wanted to build a system that's based up on responsibility from the top down, that's a different type of structure than what we've built, there will be these variances within there. But the idea is to really recognize those those people that have given their their full life within there and recognize them for that benefit. I mean, that's the whole idea about the CBAs with the police and fire and making sure the longevity is built into those as well, too. We want to keep these people that we train, we want to keep them on board. Will that will that be from I'm sorry my right no angle will that be from the structure from all the way from the top including directors >> the whole I I would say that it should be for everybody essentially underneath my position because mine is under a contractual relationship all the rest of the positions are these outweigh positions within that all the way down through the structure but that is for the council to decide I'm going to provide you with a plan as to how I could recommend to do that and that's why I think we have to have a further conversation. >> Yeah. And I think this is important when it comes to retention also because you have a you give the longevity to an operator who has a 20 year uh longevity then doesn't want to apply at the county because he's going to start getting paid way less over there than what he has uh made so far within 20 years. >> There's a really good balance within the system and and I don't think we've used all the tools that we have for all of our different classes of of employees. >> Yeah. Yeah. But I agree mayor if I may I agree with with with with mayor pro 10 what he's saying it's that you have there might be a person that's over there from the county that's earning certain amount and you know but there's no positions open as a supervisor but he wants to come to the city and he's very qualified and we want to come to the city but he's like well if I go over there I'm not I don't have long duty and then you have I'm going there as a supervisor then you have an employee that or a person that's going to be under me earning the same amount and I'm a supervisor >> and I believe that's why the county adopted implemented a longevity to retain their experience. >> And what I'd like to do is I I'd like to do a full presentation on this as well too because I want to make sure that everybody understands the same mechanics all the way up through the system. Happy to do that. So >> all right. >> Thank you. >> The uh next one in there is a tenure. Tenure is something we've been doing and the tenure is something that helps the employee move within within their their pay structure, their minimum, their pay. Uh so we're considering that's one of the considerations. The other consideration that I want to put forward to council is we are looking at trying to get some estimates on the TMRS uh TMRS plan options. The state changed their plans. They added an additional plan. They had a 510 and a se 12 and a 714 plan. Credo is currently under the 714 plan. They now have a new plan which is an 860 which is a higher plan. There is what I'm hearing there is a significant cost to move into that one and uh but we want to go ahead and look at that those that that's one of the considerations that budget and alongside HR and management are looking at because this this is another benefit that we may or we're looking at is see what is the the is it viable for the ciler rate or can we afford it or can we not as we move to the right side of that that slide we have the internal service ones which which I mentioned mentioned earlier uh medical rates are going to be uh discussed in there. We did have some uh we did have a meeting yesterday with Blue Cross, the annual meeting that we have. They do have some numbers that the they're recommending for increasing our medical rate that always a challenge and always a a point of of conversation and there's so that's another uh item that we're looking at. >> Yes, >> Mr. Espar is going to be an uncomfortable What is the general overall increase in health insurance rates that we're seeing not just for us but across the state or across the country? >> Preliminary numbers that we're hearing from Blue Cross is on our medical side 9 to 11%. And on the prescriptions 9 to 13%. Wow. >> So, and that's that is across the board. This is >> in all the plans that they're looking at. So, we do have I do have another meeting with them to start more into that because it is one of our internal service fund. It's a fund that impacts all our funds specifically general fund. Uh so that is an item that we are looking at very very intensively. >> And mayor may >> Yes. >> could could I also ask you you know at the end of the last budget cycle we did dip into reserves. Um what was presented by Miss Tenyant at the time was that we had some catastrophic cases and that just put more pressure on the overall uh budget that we had. Um the hope was to recover some of the reserves with savings from last year. Did that happen? >> That conversation we haven't had yet. We're we're having some meetings. We're we're scheduling some meetings to seeing how the fund is performing and seeing where we're at right now. So that's going to be part of the conversations we're going to have within the next month as well. >> Appreciate it. Thank you. >> Yeah. Uh one one cl one point that I want to make on that one is when we talk about the fund balance is the fund balance specifically that we have under the health and benefits uh fund itself. >> Yeah, that that's what I was asking. I just want to make sure I just remember being part of that conversation. >> Nothing to do with our general fund fund balance. >> It did dip significantly and that was the concern at the time. >> Thank you. >> Go ahead. >> Maybe looking at different provider services. I don't know if I know Blue Cross is the one we've been with with for forever, but um maybe we can look at some options and then also some creative ways that we've come up with to kind of increase the health and maybe decrease some of these these incidents that we've been experiencing over the years. Um we've been trying to get creative on on some of that that you know encouraging checkups, early detection, all those types of things, not using certain um outlets when they go and that those are more expensive. I think it would be important for for the city to also present ways that we've identified to save and policies that we're implementing to protect that that health plan for everybody just to make sure that we're spreading the maximizing the amount of money that we the usage of the money that we have. >> And and a lot of those items were uh touched on on the meeting that we had. Um, and that is the the first workshop that we have is going to be focused on on the internal service fund. So, that's going to be one of the first ones that we're going to be looking at. The other items we have in there is the TML insurance rates. Uh, this this are the insurance that we have for our properties, cars, vehicles, and all that. We we've had some increases as there as well. So those are the other items that we're going to be looking our IT charges. As we look at our efficiency and we look at our technology, we are having a a considerable amount of money that now is needs to be funneled into the IT department and it's because some of those its are now a a charge that is charged on a monthly amount because everything is mostly on the cloud now. We used to be able to buy a server with the software in there. It was a onetime expense. we could probably bond in some of those purchases, but now since it's more of an uh maintenance and an operation, now we're having to absorb that into our maintenance and operations. And this internal service fund it also is one of the ones that charge all the other funds as well. And fleet, same item in the fleet in there. Lastly, uh I want to just uh let council know that the city budget department got awarded the uh GFY Distinguished Budget Presentation Award for the October 1st, 2025. >> That concludes my presentation. >> Good job. >> Thank you, Pro Tim. And and I want to tell you, every year we go through this for our budget, we have a balanced budget every year. We'll get there. Don't don't be worried about all the numbers and everything. The goal is to lay everything on the table so nothing surprises us. That's the intent. Once we have it on the table, we know what to do with it. And I I just want to make sure that everybody understands that none of this should be shocking within that information. We are trying to provide more information on the front side than the back side. This is all tied within the efficiency and and the study that we have. Mayor Pro Tim, what I would ask for is maybe the uh adoption of this as our our framework. That that's all I would like to see if the council would be willing to adopt this as that. And then everything that we do, it ties back to that as you can kind of see within the budget structure. So, I just want to make sure that we haven't missed anything that was expected in the efficiency study. Well, I just I I I'll make the motion to accept this as a framework. >> Is there we can come back and change anything on this? >> Yes, sir. That's what I'm trying. >> Yes, sir. This the framework is built to move with exactly what we have to tackle and when we have to tackle it. So, so that's >> so there's a just a comment on this because I've been going over it as as we spoke today. There is one thing that I feel that is is missing in here and I've been talking about it but I just don't know how to get there and I believe we have shark mines in here that that might might get us there. We still haven't figured out or I haven't got a clear answer as to uh what other revenue sources we can get into that maybe other cities are going through that we might not have considered yet. And it's very important because as I was mentioning to somebody else earlier, you know, all of these things are with all the external functions that are going on out there and all the craziness that is going on around our country. We are getting affected by this and it's through no fault of any of employees or anybody up here, but we do have to face it, you know, go face to face with it and and deal with it. So, one of the things that I wanted to do and speak to you all about was how do we sit down and brainstorm or figure out a way that other revenue sources have to be out there that are available to us that can offset some of this cost increases that we're going to be facing. >> Yeah. Mayor Pro Tim and council member, I think we have the frame, we have some of that as well too already uh prepared. We just have to have the conversation. uh some of it encompasses and this is the challenge we have is that some of it encompasses additional local dollars in order to get there all the way up to uh and we've we've all talked about this. So when we are in when we are in DC and when we are in Austin Laredo is behind the eightball because of our transportation needs because it is all based upon population is not based upon being the number one port of entry. So the dollars that get divided up is all based upon population. And in my mind, I think that is that's a disservice to Laredo through the the state of Texas and through the federal government that there should be criteria for those along the border because I think every one of us have challenges that nobody else has. >> Yeah. The idea behind it is that you know obviously everybody counts on the census to to get us those monies, right? >> So uh the external challenges are the everinccreasing cost of managing our number one import which it was I I was saddened to hear yesterday that that we dropped boundary number three or something like that because of the tariffs or whatever it was. But the point of the matter is that there has to be some mechanism in there from our our federal government that says because you are that because we know that there's price increases in everything that you do because of uh the dysfunction of whatever is going on up there. You everybody down there deserves an increase in and just because of where you're at and not necessarily just because of the census, >> you know. So I think that's the point we need to get across. Uh that there's other factors that are causing all this um cost increases and uh but I think the public should be made aware of that. >> Yeah. And I and I agree and I believe that I believe the framework does allow for that that whole conversation to happen because and again we've already had that conversation. I mean if we can get all the expenses laid on the table then we have to figure out how to match up to the revenue source as well too. And then there's going to be a prioritization because I don't think we can do everything in one year or two years or so. But uh I'll let you uh wrap this conversation up first and then >> there's a motion. We just have one more discussion mayor. >> Oh yeah. >> Uh in this efficiency study, do we do we have is it also included as it's all departments across the board, right? >> The do we have a separate one for salary for PD and fire? Do we I know we went out for a stud comparison >> within within within the efficiency study. It is all laid in there departmentally to that structure. It does not get into the depth of exactly where you're going. Now, we do have a study that's coming out for police and fire for that public safety site. >> What is that? >> We'll be receiving it in the next week or two, I think. I I I thought it was the first week of March. >> Are we going to have a workshop for that? >> Uh we will we will have to have that conversation. uh because if there's any data in there of value and we've already talked about this as far as our CBA strategy which we won't talk about out here uh that's not not to offend anybody on either side of that is that we going to have that conversation that if that has an impact on that strategy yes we need to talk about it. >> Yes. >> Mayor. >> Yes. Go ahead. Uh just to address Councilman Bats's point, I mean, we have been hammering that point home for the whole time I've been on council and it falls on deaf ears. Um we've said it in Austin multiple times. We've said it in Washington multiple times. Um they don't really want to factor in the crossings that we have and and the dis the difficulty that we have budgeting for the port needs, commercial, you know, roads and industrial parks. Um take maintenance residential needs and having to split all our dollars into all those different categories. It's very frustrating for residents. I hear it all the time that they expect the streets to be um adequate in the industrial parks and then um they're not and then again in the residential side and there's just so much money that we have to go around. So, it's unfortunate that we have those problems and I'm sure we share those problems with all the border communities, not on a the same level, but um there doesn't seem to be much consideration for those types of problems. But I think what the question that m that councilman was also posing that I found interesting was u the question of how can we diversify I guess our income portfolio generation so that we can look at ways to bring in more more money. And um I think that's going to be an important component looking at whether or not our our um ordinances are our fee structures are adequate. But at the same time, you know, we do I do caution us jumping too high on fees because um again, we've we've had these these rate structures in place. Um you know, let's take the parks ordinance for example. We hadn't updated that thing since 2008. So, of course, when you've gone so many years without keeping up with inflation, and then when you finally get around to having to adjust the structure, you can't, you know, take in 10 20 years of lost uh inflation adjustment and just throw it all in in one year because then that's also not fair. Uh so, we do I do want us to be mindful in the way that we increase our rates and and and if we've identified the need to increase rates, then we need to implement something something that's more keeping up with inflation structured um and then look at ways that we can kind of backtrack. So, uh it is important for us to to to get a little bit better on on all those levels. But um efficiency definitely appreciate cutting salaries. I mean cutting um expenses. Well, my point is that I was saying cutting expenses, but I was going to say that I didn't like that most of our savings came from salaries because if you have unfilled positions, that's not really a savings because now you have an employee who's having to do the work of another position that you didn't fill and they're getting compensated. It's extra work for the same pay. And I that's why I don't consider payroll by not filling positions as savings because something's not getting done somewhere and somebody's bearing a burden of extra work. So yes, I appreciate the efficiency, but we didn't really find savings other than salaries. And that's the part that for me was disappointing because um if we're going to cut, you know spending I think, um that that was kind of the goal of of the efficiency and not just to say, well, we just didn't fill $3 million worth of payroll positions. >> Yes. Um, I I I just want to go back to Council Member Garisa's point about um the fact that we're punching above our weight class and that we need to keep constantly reminding the federal and state government that we have so much traffic and the port is so important to the rest of the country that we deserve more transportation dollars. I will say that this narrative has been out there since as long as I've been on council and probably a little bit before, but um it does it has made headway in our own Texas transportation committee. So, Alex Me, who is um the first commissioner on that Texas Transportation Committee in I think 30 years from the valley, understands the needs of the border. and um he was on Eddie Alrete's podcast um just recently talking about how he believes that this transportation committee that does designate a lot of those federal dollars that they appreciate or they have a better appreciation of what is happening on the border. So I would say that while we still don't receive enough federal dollars or transportation dollars, we are making headway and and that is what our job is, right? That we need to if if the the standard doesn't change from population, then we have to be telling our story. And I think these trips to the state capital, the trips to the federal government and talking with Department of Transportation at both levels make a real impact and and we will see it, right? It will be coming. Um and it needs to because we still are the largest landport. We could very well be the the largest port um when the final numbers come in from I think November and December. And and so we will continue to do that work. >> Sure. >> Go ahead. Um, and I appreciate Council Member Sigo's point. The the the unfortunate reality is that yes, we do have sympa sympathetic um, advocates at at at these different levels. The formulas are not updated. And that's I guess the problem is it's it's more project consideration based. like they did support us with the HAR funding gap that we had $45 million and the state was very supportive of that project and did award us that that new money but it's on a project by project basis and and that's where um it it's unreliable. It's not like something that we can say oh we're going to get this much more money because now they're factoring in the crossings or they're factoring in the port activity. we're still getting funded based on the census and there really isn't any doesn't seem like there's going to be any change in that anytime soon. So, it is important for us to continue being vocal and to continue lobbying for the needs of the community, which is why we do go on these trips and it's good to have people that understand the the plight that we have here, but um it is still on a on a on a lobbying project by project basis. So, we do also have to keep up with getting this growth projected out and getting these projects shovel ready so that then we can go push for money. And that's always been kind of a a struggle for us is getting to the point where we are shovel ready and we can ask for that funding. >> And I and I know you guys are all aware of this as well too, but I'm going to say it for the public's sake as well too. These are incredible shifts for this council, for this management of of the city as well too. We are better prepared than we ever have been in the past. And it starts with you and it and it goes all the way through the that we have to keep shaking the tree. It amazes me that we go up to DC every year and we still have to show on a map where Laredo is at. >> Yeah. >> We still have to do that every time. And but I think that we're we are structurally we are getting we're advancing those conversations. We're getting better at our data. We're getting better at showing why that value is. Uh we did get a uh conversation and this digresses a little bit but it's it's important to the point as well too. Senator Cruz reached out there is a there's some port legislation out there for land ports because the harbor ports actually have a fee built on them for dredging the harbors and so that money becomes available. They're now looking at one for land ports and of course we are still the number one inland port of entry within that. And I I'll I'll I'll talk about that just a little bit. But so we would be at the benefit beneficiary in my mind of some of the funds the federal funds because what they're trying to do is build the same structure over the inland ports as well as what they've done with the harbor ports. So I think our I think our conversations are helping with that. Um really quickly on the port of entry thing just so you know Laredo did not drop the other two punk. They went over they they climbed above us. Los Angeles and Chicago in trade value. Two cities that are significantly larger than us ended up having more trade than Laredo did. We are still the number one port of entry. Our numbers did not go backwards. Their numbers just went faster than ours going forward. And that's the story I think that everybody needs to understand. It is not about it's not about the struggles that our our our port is having. It was that the bigger dogs got more beef this time. And so and and then the slide I have up on the screen really quickly and and I and I appreciate what council member Bre says, not all of the this is this cross department initials from all of our departments. If you look within there, these are the things that we have to adjust, not just salaries because I agree with you because somebody's got to get that work done. And so the idea is to make sure that we have the right people in the right places at the right time. But along with that outdated technology is very important. We had conversations since I've been here. Why can't we take all payments online? We can get there now. I mean, we've been working on all that structure for that. We're we're slowly changing into those pieces because that technology is less expensive. If they can do all their work at home online and everything, then we're dealing with exceptions to the rule rather than the rule itself. The interdep departmental co coordination, the procurement and contract place, we're all aware of those different things. We talked a lot about the training gaps today. Uh the duplicated functions, I think that's something we talked about trying to get the consolidation right. Again, I think we are moving in the right direction. I appreciate all of that. All of this efficiency study was built to keep it open and broad enough so that we have the ability to move as we learn what we want to focus on next within that structure. So, I'll leave it at that, but I think I I covered we are the number one port of entry, inland port, just so you know. >> I didn't mean to say it that way, but >> but it's kind of like my budget director saying we've lost this money, right? We've not lost any dropped or whatever. Well, what what I didn't want to say though is that if that's the case, and it it's going to be a very interesting conversation to have in DC is these people are going up there, which is uh LA and and Chicago, and they're using their their vast improvement over the last two or three years or whatever it is, and they get more federal funding because of it, and we don't. >> That's going to be a battle that we need to take take on because It's it's the big dogs are over there barking as loud as they can and we're over here been barking very little and and but we've been doing consistently and they haven't heard us and and the reason that I say that is because it's not only the crossings that and and the wear and tear of the of our infrastructure. It is also having to manage more and more people that they're dumping on us. They're dumping more and more they're d they're they're dumping more people on us for security reasons than than than I don't know the city can handle. What is the cost of that and and having those people over here? Is it safety? Well, let's see. Let's see what it is. But I need to know those numbers and and figure out how much it costs for them to be here. Number one. Number two, what what monies are available that are supposed to be coming to us and we haven't gotten them over the last 10, 20 years or whatever it is. But it it it's it's it's going to be it's interesting to me that it hasn't happened. But it's going to be further interesting is that if if the city of Chicago and and and LA uh just because they've reached this milestone, they they get a vast amount of money or a huge amount of money because of it, then we need to be ready to to get into that battle right there. >> Sure. >> Um and and just to put a finer point, so it was $338 billion in 2024, 2025 up through either October or November, it was 52 billion for the port of Laredo. So we are growing, right? Whether we're first, second, or third, we are continuing to grow. So we are still doing things right. And like you were saying, we still need to be fighting for our fair share. Yes. Of our of these transportation dollars. Did was there I'm sorry. Was there a report on the total amount of trade? Did they were they able to finish out the entire year? Do you do you remember? No, I we we've been trying to get that information because uh where the information is coming from is a subscription base through uh world city and so we we just have to pull it all together. >> That's fine. But the reporting was Los Angeles and Chicago had had a lot of frontloading because of the tariff years and so that caused that that that spike, right? But uh we are consistent in how we keep growing year over year. >> Yeah. and and LA is a harborbased economy for their port. Chicago is an airline airport based port of entry. We're in the inland. We are the number one inland port of entry. >> How about in the western hemisphere? So, but mayor prom. Yes. Uh if if we can finish that motion. >> Yeah, there's a motion by member and a second from council Garca. >> Uh all in favor? I >> he motion passes >> and and mayor pro Tim we have another item on the agenda. We can either walk through this. What I want to do is I want to lay out the table first and then I want to recommend that maybe we take it under advisement and we worked on some of this because this uh this other item on here is uh chapter three. This is our governance manual. This chapter 3 actually governs council meetings, agendas and directives. So what I want to make sure that I cover with all of you for from the outside piece. So we have the the city charter and that defines certain ways of how we do our business. From the city charter we have our ordinance structure and within the ordinance it has some some of our other responsibilities. Then we get into what's called the protocol manual and the the uh the procedures manual. And so there are bits and pieces of how we do business in each one of those documents. Now the charter, it takes a vote of the people to adjust that. And so that that's pretty well our our foundational we have to follow the charter and then all these other steps because we've had a lot of conversations on uh the how we do our business in our business meetings and everything that that's why we were developing this out and trying to bring it up to how we do business today. But what I'm what I'm suggesting I am prepared to go section by section today. But I for uh deference to your time and and your for for what you need to get done. You do have another you have a hard copy of the chapter as written. Right now you also have what has been changed in each one of the sections. If you would like to at least take some time rather than me walk through piece by piece, take it with you, consider it and then we can bring back what we will have. >> Make a motion to do another workshop on on the section three to come back, you know, after I don't know just set up a day just have a first and second for discussion. >> Mr. Can I request that the way that this is presented to us be similar to like a bill or an ordinance modification to do that where you take the original, you scratch it out and then you have the changes next to it. That way we because it's going to be very uh difficult for us to >> to look at it, compare and contrast, especially if you're saying that this is the new one and I mean it's >> yeah a lot of changes. The only thing that I'm going to have to be careful of because some of the information will come from charter, some of it will come from the ordinance, some of it comes from these other documents. So, >> no, no, I'm just saying >> I know we'll pull it all together. Yes. >> I'm saying take the original language, scratch out what's being changed, put parenthesis, put the new language. >> That way, we can compare and contrast what's being added and in in one solid. >> Yes, ma'am. And and I mayor prom and I also want to make sure that everybody understands not all the changes you desire are in here either because I know there are some conversations on different ones for different individual reasons as to why they you want to touch it. So please don't think that it is complete. It is as complete as we could make it before we have our conversation. So that's what I want to make sure of. But yes, I'll I'll put it together in that redline format. We we I think we pretty much have that as well too. Uh I do want we'll put in there some definitions as far or not definitions but where we got the information the data from as well too but uh I think it's the simplest way to walk through it otherwise we're going to walk through it piece by piece and we'll have a conversation just like our efficiency study which is all good I love it I it's moving everything forward so I appreciate that >> Mayor Pro Tim and council with that if that if we're going to do that with that item we'll prepare it that way >> there's a motion and a second uh all in favor I >> any against? Motion carries. Uh motion to adjurnn. >> Second. All in favor? Any >> against? Motion carries. >> Thank you for all the work.