Recording in progress. I now declare that the Plano City Council has convened an open session, that all council members are present at this time. We will ask if there's anyone that would like to address the council regarding the budget and CIP. I will open the public comments and anyone that wants to speak on the budget. We have two speakers registered. The first one is Nancy Markham. Nancy Markham. Okay. Bill Lisle. Well, that went well. We will we will carry on. So we will close the public comments. And I will ask Mark to present the overview. Mark. Good evening, Mayor and Council. First, thank you for attending this special work session on our budget tonight. We have a number of items for presentation for you from your boards and commissions. We have our grant funding requests from the Heritage Commission, the Buffington Community Service grants, as well as cultural arts. You're going to hear from a representative from your public improvement district for downtown, and then we will go through some detailed aspects of the tax rate again, including getting into some projections with our modeling that we've been doing. Those will be handled by Karen Rhodes Whitley. Last, we will talk a little bit about some of our compensation and benefits updates. And then we will have time for you to provide some direction, if you so choose. And we will take that and put that into work for the next meeting that we have for, for public consideration. So tonight it's going to be mostly focused on grant presentations. Those are already built into the budget. So if you're looking at the Buffington service grants, the Heritage Commission and Cultural Arts, we have those things already programed in. If there's changes to make, we can make those changes. But those are already in there. The item that we do not have funded at this point is the Public Improvement District request, but you'll hear more information on that and what those uses are. So with that, we're happy to go ahead and just start this off. The one thing that we would ask for staff is to please practice smart brevity. Let's make sure we move. Move this along. And with that, we're ready for some of the grant requests. Mayor. Okay, so let's let's move to item a presentation of Heritage Commission. Nancy. Welcome. Good afternoon. Council I'm Nancy Baldwin. I'm chair of the City of Plano heritage Commission. There are seven of us on the commission. The others that you see listed here are vice Chair Debbie Barrios, Michael Holland, David Kratovil. I think I got that right. Carol Grasdorf and Tim Bob. Before I go into the grant applications, I'd like to just touch on a few of the achievements that the Commission has had over the last year. We updated the 2024 Heritage Commission Plan Preservation Plan, the Heritage Preservation Grant program update that we did together with staff, and the Plano Development History Project, received the 2025 Celebrating Leadership and Development Excellence Award from the North Central Texas Council of Governments. As you know, certificates of appropriateness are one of the most important things that we do on the Commission in order to preserve the historic and cultural validity and openness of buildings within. To preserve that, look within the city of Plano and in the last year, 26 have been issued. 81% were approved at the staff level, and of those, 71% were approved in a day or less. Commissioners have participated in a variety of training from the National Trust for Historic Preservation, the National Alliance of Preservation Commissions, Texas Historical Commission, as well as other organizations. Preservation Dallas, for example, which I have participated in and received certifications in historic house planning. We take very seriously the Historic Preservation grants, and they are meant to preserve and promote the City of Plano's heritage by supporting and stimulating business and strengthening the culture and prosperity and welfare of Plano citizens, so that we can maintain the excellence of heritage within our city. The criteria include heritage tourism and public education, which is 50% heritage preservation merit 25%, and administrative and Fiscal responsibility, which is 25%. This gives you an overview of the timeline. The grants open online with zoom grants on April 1st, and for those of you who maybe do not know, this Zoom Grants is an online application for managing grant applications. Then there is an April 9th, or was an April 9th workshop for all of the applicants to review the process and the criteria so that they can best execute their applications. Those applications were due May 5th and then between May 5th and May 20th or June 25th. The Heritage Heritage Commission reviewed all of the applications, the information and scored it, and that information was included on the next meeting at the 25th, where each of the applicants had the opportunity to make a presentation and tell us their goals for the funds that we would be authorizing for them. Which brings us to today. And then following that, City Council will approve it and the grant cycle begins. And we have had some changes to the heritage grant program, which has expanded it. And this has been a benefit because it provides more opportunity for applicants. And it also follows up with City of Council goals for funding. So now we have four different categories for distribution. The major heritage grants, the minor Heritage grants, downtown events and the Emergency Heritage Grant fund. For example, if a tornado goes through a cemetery which has happened, then we can authorize funds for repair. One of the things I want to touch on is operations and maintenance. In the past, funds have been requested for operations and maintenance, and then in the 2009 2010 year that a cap was set by City Council on the amount that operations and maintenance could have for specific grants. So, for example. The cap that was set and this was in last year, set aside funds for Heritage Farmstead Museum at 330,000 and the Plano Conservancy at 145,000. So those funds are included in the requests for this year. Okay. This gives you an overview of the requested funds. And we have five organizations in the major heritage grant category that have requested funds requesting $1,093,326. And then for the downtown events grants, another 53,088. So that comes to a requested total amount of. $1,146,414. What this illustration shows you is, over the course of the last few years, the requested funds and the amount that has been recommended for approval. Now, in the past, the amount of funds that we had was was totaled 800 and $800,000. So that has increased. And you'll see that as we go through the applications today. So we'll start with Heritage Farmstead Museum, which is in the major heritage grants category. And the Commission is recommending acceptance, approval of this total. And one of the things you'll notice here is the requested funding is 360,000, but the total includes the O&M of 330,000. Projects for Heritage Farmstead include marketing special events such as Livestock Show, the spring Eggstravaganza lights on the farm, various site improvements, and the Amy Wilson House Fire Protection Project update. Again, we are we are recommending complete funding, and it's worth noting, and many of you know this already, that special events like lights on the farm and homeschool days, these seasonal festivals attract more than 50,000 visitors annually. The Plano Conservancy for preservation. Again, we recommend complete funding. Their heritage projects include museum updates, marketing and archeology, fair education, and cemetery improvements, and the associated administrative costs. So the total amount comes to $230,902. The Texas Pool Foundation this gives you a summary of their the projects for which they are requesting funding. This includes a roofing project, educational programs and events, marketing and administrative costs. The recommended funding is $74,400. The North Texas Masonic Historical Museum and Library. The Heritage Commission recommends again complete funding for these projects, which include the Moore House, West Wall Door and window repair, the west Wall stucco and brick repair, and Masonic sections of the Plano Mutual Cemetery for restoration, as well as their administrative costs, so the total comes to $74,888. Plano African American Museum, The Heritage Commission recommends complete funding. Their projects include the Urban Music Festival a When Food Speaks event, the West Wall restoration, summer programs, and informational sign, Black History Month events and administrative costs, which comes to $23,136. And now the next illustrations will show you the downtown events grants requests. The Plano International Festival and again, the Heritage Commission recommends complete funding. The next festival will be October 18th, so we can all put that on our calendars. $33,850. Celebrating Asian American Heritage Foundation, Plano Asia Fest. We're all familiar with. The next date for that is May 2nd of next year. The total is $7,736. Museum of Contemporary Visual Art. This takes us in a slightly different direction. The Heritage Commission does not recommend funding for this, and there are a couple of reasons for that. This is not a separate event. It is part of the Plano International Festival, for which funds we are already recommending. Also. Funds have been recommended through the Cultural Arts Commission for this. So because of those two things, we do not feel it's appropriate at this time to recommend funding for this. So this brings us to a recap of what we have recommended. And again, this includes the O&M that we talked about earlier. So the total comes to what was requested was 1,000,001 46 414. And what we are recommending is 1,000,001 34 914. Which leaves us with a balance. And let me just touch on that for a couple of minutes here. The balance of 365,086, we are recommending that some of that is that on the next slide. Right there, here we go. This is where we feel that it would be best spent for emergency heritage grant funds and for city initiated heritage program related projects, which would come before City Council at a time in the future. It would be brought before the Heritage Commission, and recommendations would come before City Council. So that is an overview. What questions can I answer for you? Thank you Nancy. Deputy Mayor pro Tem, have any projects come up before or do you have any projects in mind for those additional funds in the future? Is there something already that's come to mind that those funds could be used for, or they would sit there until a project came up? I didn't know if there's something in mind that's already been an idea that's been raised or not. There hasn't been anything yet to this point that we've discussed. Hey, Nancy, I have a question for you. Yes, sir. The I noticed that the requests were lower than the amount of money that was available. Do you think it's a marketing problem for groups not to know that there's grants available? Some other thing that's that's pushing down the request. Help me understand what happened here in terms of requests. My thought would be that because the amount has increased significantly from the last couple of years, when it was 800,000, that the full extent of the opportunity hasn't yet been taken by some of the organizations. And also they're being very careful in requesting according to exactly what they need. Very good. Okay. Okay. Thank you so much. Thank you very much. Our next item is the presentation of the Buffington Community Service Grants Johnny Sing. Curtis. I think. Good evening. Curtis Howard, director of Neighborhood Services. We are going to be providing more information on some of the grant funding. And what I wanted to do is before Mr. Sing gets up here and talks about how we did that, I just kind of wanted to give a brief overview of the grant buckets of money that we use and how we use them. So that way you kind of put it in context. So just a little bit as far as the flexibility, we got four buckets of money that when we talk about grant funding through neighborhood services, as you can see we start off the one you're going to hear about today from Mr. Sing from the Community Relations Commission, is they're going to that's that's the guy that's got the most flexible ability to use that for social services. As we go up the pyramid. CDBG funding, which you heard about a couple weeks ago, that's got a little more flexibility. The state grant, grant housing that that we get from the state. And then finally that home funding, which is which is very restrictive as far as how we can use it, as with regards to social services. So. And just a little bit as far as the state grant itself, Council heard that we don't go through a funding process like we have here that is done through a RFP in which the Salvation Army does our rapid rehousing program. And so that funding goes towards rapid rehousing for those folks in our community. And then, of course, the federal grants that we talked about that you've already heard that that comes through HUD and you've made that decision. And then finally, tonight's meeting, you're going to hear from Mr. Singh about, you know, the Buffington community grants and what CRC has recommended as far as funding goes. So with that, as far as the context there, I will turn that over to Mr. Singh. Thank you, Curtis, for setting the table for me. City Council's city manager. Mayor. Good evening. My name is Johnny Singh. As the chairperson of the Community Relations Commission, I am here on behalf of the other eight members of our commission. I was just thinking, as I'm sitting there just thinking how Heritage Foundation, they have a festival to celebrate the contributions of their commission, culture fairs. They have ballets, concerts, our contributions are a little bit invisible. So I want to take the take a quick detour. Let's see. Important detour to recognize the contribution of extensive time and competencies by our commission members. They are. Priscilla Brown. Magesh Kanda, Rick Grady, Khalid Isaac, Misty, Jackson Miller, Gina Davis, and Sandy Morris. As a group we come from. Varying different professional backgrounds, different ethnicities, different countries of origin, basically just different life experiences and different perspectives. But very clearly the common denominators that we are citizens of Plano, we have real skin in the game and we want what's best for Plano. And this is relevant and contextual to the recommendation that you and the city audience will has, will see. Because again, I believe strongly believe that our commission is a proxy for the intent and the will of the populace of the city. Plano. All right. So CRC is entrusted by City Council with the important task of implementing and overseeing the consolidated grant process for which nonprofit organizations can come to the city of Plano for specific program funding via three sources of funds. And those are CDBG home, which are both capitalized by federally by the US Department of Housing and Urban Development. Those have been our recommendations under those two buckets of funding have been previously presented to you by Curtis Howard, Director of Neighborhood Services, back in June and July. I'll take my time to focus on BCC as, which is the Buffington Community Services grant. So different from CDBG and home. CSG is funded with dollars from city Plano's general funds. With that, there's no stringent HUD usage restrictions or requirements, and no program service limits at the historically budgeted rate of $2 per capita, it is the largest source of. Not for profit grant funding offered by Plano at the same $2 per capita rate. We are the benchmark city in terms of municipal municipal support for nonprofit organizations. The last time this target rate has been raised was in fiscal year 2016. So we are coming to the ten year anniversary mark, which is impressive against the background of the high inflation rate trends for labor and cost of goods, which are two two inputs that the organizations utilize for the services provided to our community. So we want to commend the organizations that we've backed in the in that although the size of the funding pie has remained relatively stagnant, or I like to say we've been pretty efficient with the dollars we have allocated out the. But the Npos, the nonprofit organizations, have been able to find additional sources of contribution to maintain their commitment of service to the city of Plano. Well, I almost missed this. I'll be remiss not to reference the Namesake for our grant, which is named after Robert Buffington. He was a employee of City Plano as a city manager, as a as a director of community development, and also as a manager of neighborhood services. And up to his passing in 2006, he was approaching 30 years of service with City of Plano. So Bcsc supplies funds for programs that provide public services directly to Plano residents. Why do we fund nonprofit organizations with city dollars? Aside from being altruistic to those members of our community in need, the value proposition is that we want to encourage not for profit, nonprofit organizations to serve Plano, and the grant funding will be a small percentage of what it would otherwise cost for the city to handle the issues directly in house, which at times may fall upon the PD or the fire department. Funding eligibility can be summarized at to 100% of grant funding needs to be dedicated to Plano residents, and the proposed programing needs to be consistent to at least one consolidated Consolidated plan goal. The timeline. This timeline in the slide outlines the process and evaluation framework in which CRC arrived at the BCS g funding recommendations. So not all not for profit organizations submit application due diligence documents for our commission members to review. Then, over the course of scheduled public presentations in April, our commissioners have the opportunity to have an in-person dialog with the not for profit organizations. The intended takeaway of this process, ideally, is that CRC administration administers the consolidated grant process with detail transparency and accountability. So for this current grant cycle, we received a total of 26 grant applications, and that's across all three funding sources BCC, CDBG, home, and. RBS. But be as busy as. Exclusive to just public services applications. We had 24 eligible applications, which represented 1.8 million of total requests, and at the Budgeted Funding Availability Fund funding availability of 599,000. That's effectively $3 of demand chasing $1 of availability and funding. Here's a breakdown of our funding recommendations the CRC is making. We are recommending the funding of 22 organizations with the Public Services funding via BCC. The background of the 22 organizations, the purpose have been separately provided to you in a memo format. But this is kind of a visual representation of the categories that the programing request falls under. Here's a visual representation of the some of the organizations that we are recommending funding. I'll sample a few of them. City House, we're providing we're requesting funding of $38,698, of which 7103 comes from the BCC CSG. And the purpose of the funding would be for transition housing for young adults. Meals on wheels, Collin County. They provide meal delivery for seniors. We are requesting funding under BCC of $50,000. We also have Wellness Center for Older adults, also known as Morris Barnett Geriatric Wellness Center. We are requesting funding of $30,000 for preventative health care for seniors, which are delivered at Sam Houston Rec Center, and we can go through any, any, any of the other requested fundings in organizations. Should you should you have any questions? With that, I'll open it to Q&A. All right. Mayor Pro tem. Yes, I actually have a question about our community service grants. I wanted to know whether or not there's been any type of active reach out to programs or organizations that are dealing specifically with mental health issues. That is a growing concern, and they are probably, in my line of work, the largest population in, in committing minor criminal activities. So if there isn't, I would like to see in the future more focus on trying to encourage or promote those type of. Organizations in in applying for grants. Sure. And the short answer, the short answer is yes. One such organization that was a new organization that received funding last year, brand new organization. They are. Let me just locate them on my chart. They are. Yes. Grace to grow. Grace to grow. And they are an organization that's brand new to us as of last year. And we are as a change. Or is it grace? Well, it's grace to grow and then DBA grace to change. Yeah. So they they are organization. We begin funding last year and this year we are also part of the set of recommendations. They are still one of the organizations I think they're mostly they deal with people who are addicted to drugs and more of rehabilitation. I'm speaking more of type of shelter that are specifically for those people who may have, you know, serious mental illness. Not just not not not mental illness from drug addiction. And they, they can get, you know, combination to. But like I said, anything to promote that type of resources for, for those organizations. I would really like to see that happen. It gets them off. It gets individuals with mental illness off the street and out of our jails. And it also provides some type of medication and resources for them so that they can be they can be stabilized so that they don't increase the cost in our city. That's I think there's a lot of mutual benefits in in promoting that type of organization. That's how I sure my opinion. Sure. And I'll certainly bring that back to the Commission. Also share with you that as part of our public hearings with the with the organizations, we do as part of the dialog with organizations, we do hear tremendously that mental health is a key, key need within the community, in addition to transportation and also affordability of housing. With regards to mental health, where I feel like we have attempted to address it within our recommendation set, is that a lot of the services that we are proposing, proposing and funding, they are case management with mental health, you know, being top of mind for the organizations. But I'll certainly bring that feedback over. But I also want to highlight that we're kind of every single year, I look forward to your your your question regards to who have we outreached to with some. With some. Hesitation to how I should answer because the reality is we are rate our our funding rate at $2 per capita. Although we are so thankful for that these these are coming from general general funds. This it's a signal for the organizations that apply every single year that there is frankly, not more to go around. So we're in a double edged sword where we did outreach to brand new organizations to say, hey, come apply to us. But on the flip side, we really don't have the dollars. If we're doing our job correctly. We're funding each year over year. We're funding the organizations that most are providing the services efficiently to our highest needs. So we're kind of in that push and pull. But certainly I will bring that feedback to our commission members. Councilmember horn, thank you, Mr. Mayor. Johnny, thank you for a really good presentation. Appreciate that. I do have a question with regards to the allocation of $50,000 to Meals on Wheels. The Collin County Meals on Wheels is a fantastic program, but really, I'm really questioning I'm honing in on the $50,000 and that is that money going to be spent to our seniors in Plano? Can are we specifying that money to be spent to support our citizens that are needing this type of assistance? Correct answer is 100% yes. And at a larger at a higher level, the total requested funding under the $599,590, $178. Every single dollar is required to go towards the benefit of city residents. So Meals on Wheels, we have under the service contract that should this proposal get agreed upon, get approved by council within that contract of service with Meals on Wheels, under the scope of service, there is going to be requirement that these set number of meals correlating to $50,000 will be provided to residents of City of Plano. Do we have any way to audit that? I mean, you know, I mean, we have such a great need for that. Sure. And I'm not trying to be selfish to our neighbors in Collin County. But again, as you said, our dollars are tight and I want to make sure we are specific in delivering this service to our seniors that need it. Yeah, no, I can't, I can't I can't anticipate exactly what level of audit that you have in mind. But we do require quarterly quarterly reports. And they they do provide, you know, how many meals were delivered for the quarter. And this is on these funding. They're on a reimbursement basis. So they have to show how many meals are delivered. And I would imagine I haven't seen the logs before or the or specifically for Meals on Wheels, but I would imagine there's going to be some sort of paper trail in terms of these who who they service. But but like you mentioned, we are like minded in wanting to extend our ROI, maximize our ROI in terms of savings for the city's contribution. But let's put some numerical reference to things. Meals on wheels. As of Collin County, they have a total annual budget of $5 million. We are we are funding them $50,000. But what you have on the commission are people who really care about the city, Plano. So we utilize we ask during our public hearing presentation with these organizations, we say, what can we do to get a larger market share of your resources? Because that's the name of the game. I say all the time to the organization, I'm selfish for Plano, so we want to for as for we want to, we want to contribute, but we also want to get a lot back. So that's that does factor in to what you're describing. Thank you John, and thank you mayor. Thank you, Deputy Mayor Johnny, I just want to thank you and your the commission. I appreciate everybody that serves on a board and commission in the city. It's really a labor of love and it's important. And we appreciate everything that that is done. But I don't think a lot of people realize that time and the heart and soul and it's it really weighs, I'm sure, on your mind and your hearts to hear what all the needs are in the community and community relations. Sounds like it's maybe a fun job about marketing and things like that. That's what I thought when I first heard about it. And really, it's so much more than that. So I just I just want to tell you, I mean again appreciate everybody, but I don't think a lot of people realize the amount of time that you guys spend. And also, I've sat in on a lot of the grant applications over the years and, and we have some amazing organizations doing great work in our community. And so thank you for championing them. And, and, you know, contributing to this good work in the community. I appreciate that, but I'd like to just add that, you know, the needs, the needs that we when I came on the commission, you're right. I thought it was some sort of public relations commission. But surprisingly, I came to learn. I had no idea. No idea that there was this many latent needs in our city of excellence. And these late needs are housing affordability affordability basic, basic, basic care, basic food. We hear. So a lot of these are hidden from us. These these these this hidden, hidden vulnerabilities within our community. And frankly, as, as our commission when we do our jobs. Well, next year, there's still going to be housing insecurity. There's still going to it's still going to be it's still going to exist. So that's why every single year when I come here, I get a little envious. When I see the big celebrations, the cultural affairs have the big celebrations that Heritage Foundation have. But nonetheless, I'd like to say we are tasked at Community Relations Commission. It's is more it's important and serious. So appreciate it. Thank you Johnny. Appreciate it. Okay. Thank you thank you. Appreciate it. Next item is presentation of Cultural Arts Commission. Diane go. Well let's see. There we go. All right. Are. Good evening Mayor Muns. City council and city executives I'm Diane Goebel, chair of the Cultural Arts Commission, and I'm here on behalf of the commission to present our 2526 Arts and Events Grant funding recommendations. Whoops. So first, a bit about the commission. Here we are out and about around Plano, supporting the various arts and culture events where we often see some of you as well. The picture on the top left includes the entire commission and our two staff liaisons. The commissioners are myself as chair, Peter Wynn, vice chair, Alisa Klein, Rita Cosgrove, Sherrie Levine, Mark Chen and Toby Todd. And then our staff liaisons are Katie Suarez from Legal and Karen Davis, the Cultural arts grant administrator. So our goals this year were to promote innovation in arts and culture programing, to encourage new applicants and to continue to make recommendations to refine the grant process. Highlights of our accomplishments this year toward fulfilling those goals include. Improve communication or excuse me, improve commission meeting value by providing education to support the grant recipients, streamlining our meeting format to allow more time for conducting business. And then we began involving the entire commission in projects rather than just subcommittees. And then so we could make decisions as a commission commission rather than a subgroup. And then we refined the grant manual language for greater clarity. We also we helped the grant recipients with marketing by providing information on city marketing capabilities. That was presented by Visit Plano and the communications and community Outreach Development Department. We also promoted the use of Visit Plano for event promotion while streamlining the grant recipient process of having to maintain multiple event calendars. We strengthened our engagement with City Council by having more regular communication with our liaisons. I truly appreciate Deputy Mayor Pro Tem. Holmer for her letting me bend her ear quite a bit throughout this past year, and Council Member Levine, for now, stepping into that role and then also to Maria to Deputy Mayor Pro Tem Maria Tu for her role as liaison as well. We also met with all of the new council members to update them or educate them on the Cultural Arts Commission and the grant program, just because it can be kind of complex. It's a lot to learn about in this one presentation, so that those meetings proved to be very valuable. And then we also brought pressing issues to council, which led to a work session back in January to discuss things like continuing of the grant funding maximums, addressing an outdated resolution, discussing issues related to the venue shortage, recommending a grant program overhaul and your guidance. Ongoing guidance is appreciated in those areas. We also contributed to key city initiatives by commenting on the proposed bond referendum projects and also participating in the Cultural Arts plan development in 2026. Our goals are to promote innovation that leads to leads to Plano's recognition as an arts and culture destination to encourage a major emerging arts groups, while also supporting our well-established grant recipients. And then we'll continue to communicate with Council for direction on our goals as we move forward. And then also a goal for this next year is to serve as a resource to support the implementation of the Cultural Arts plan by providing support and input on the review and potential revision of the grant program. Input on the future role of the Cultural Arts Commission and any other ways that Council wishes to expand our scope. So next, I'll provide an overview of the grant programs, and I hope that you'll enjoy these photos of our grant recipients that you'll see throughout the presentation. First of all, there are three available grant types. Small Arts, major arts, and special events. A small Arts grant award can be up to $2,500, and no more than four of those can be awarded. Major arts and events are eligible for 25% of expenses, as reported on their 1990 tax filing. Small and major arts grants fit into a specified funding budget, which last year was $1.5 million. And then, whereas events are not subject to that specific funding dollar amount. We have a two part application process that consists of a written application. It includes scoreable questions and financial and organizational information. And then there's an oral presentation that to the commission that also has a Q&A session. Our timeline is as follows. In February the grant application opens. It's also in zoom grants. And it is open for about six weeks. Then in April, the applicant applicants delivered their presentations. And then we individually score the applications. In May, the scores are finalized and the commission approves the overall grant scores. Then finally in July, the city determines the fiscal year funding amount, and in August, the awards are calculated. And then that brings us to today, where we bring the recommendation to this budget work session. The application is evaluated on three key areas. 50% focuses on what the applicant is doing to bring people to Plano and to meet the Hot guidelines, which is especially important being as this grant. These grants are funded with hot revenue. 30% is based on the organization's operational information and 20% on how well they met. Performance milestones over the past year. The application can receive up to 100 points. The commissioners scores. Are averaged, but they can be up to 80 points. 20 points are scored on the performance milestones and are rated or scored by the grant administrator. And so added together, they can add up to 100 points. An applicant must achieve a score of at least 70 to be eligible for funding. So next I'll explain the Commission's process for determining our grant funding recommendations. So here's just some of our basic terminology. First funding request is the amount that the applicant requests, with a maximum allowed of 25% of their expenses. The overall score is the average of all individual scores. The award by score is the adjusted amount based on the applicant's overall score. The total of city provided grant funds is the total total dollars set aside by the city for major and small arts. Then the actual award. Because funding requests are typically greater than the amount that the city has provided in funding, all major arts scores are then reduced proportionately to fit the amount of total city funds, and then also no major arts applicant may receive more than 35% of the total city funds. So here's some award calculation examples. And this formula applies to both small arts and special events. So we're using 2500 here because that's the amount that a small arts applicant can ask for. Special awards events could be larger because it's based on 25% of their prior year's expenses. So you see that this so this applicant requested $2,500 and scored 81.57. So you take the 2500 by 81.57%. And that gives you $2,039.25. So that is their actual award because these are not reduced further based on a budget cap. Then major arts is a little bit more complicated. So we take the city provided grant fund total which last year. And again we're recommending this year be $1.5 million. So you take that amount, subtract the small arts awards. So the example here would be 4343 86. And so that leaves 1495 one excuse me 1,000,495 and $614 for the remaining major arts applicants. Then the. So we're going to use an example of an applicant that asked for $68,995. They scored a 93. And so when you multiply those two numbers, you get 64, 165. Then when all of those numbers are reduced proportionately to fit the 1,000,495, 624, then that particular applicant's award is adjusted to 58,804. Now for the Commission's funding recommendations. So an overview of this year's applicants. We had three small arts applicants requesting a total of $7,500. And. The recommended award total will be $4,386. For major arts. We had 14 applicants. We had two groups that did not reapply this year, and so 2,000,123 307 was requested. And then once we scored them, the award by score is 2,033,620. So then when we then we subtract the. Small arts and have an available budget of 1,000,004 95614 for major arts. Then for special events, we had two applicants for a total request of $375,708, and after being scored, then their recommended total is 363 851. So in summary, the commission received 19 applications and were recommending 18 of them for funding. So this just gives you a historical overview. It's a seven year overview starting from 2019 through the present. The blue represents major arts and the green represents. Events. It's the amount is slightly less from last year being a transition year, where two groups moved over to heritage. And then we had a large award that that the applicant did not submit an application. All right. So now we'll actually look at the individual funding recommendations for small and major arts. So looking at the spreadsheet going from left to right, you'll see there were no applicants last year, $7,500 was requested based on the scores. Two of those organizations were eligible for funding. And so that total that you'll see in the blue column on the right is 4386. Then major arts. We have a lot to squeeze onto this slide, but on the left in blue you'll see 2425 awards. The next column shows the amount that the applicant is eligible for. Then the next column the request or the maximum allowed based on 25% of their expenses. So sometime that amount is different from the one that they are actually eligible for. Sometimes it can be higher or lower. Then the next column you'll see the combined commission scores. And then finally the award by score, which is larger than the amount of city funds that were set aside. So then the next column shows how we prorated those amounts to fit into the major arts funding of available funds. And then this slide shows you a both major and small arts, so you can see where they add up to the total of award funds that are available of 1.5 million for small and major arts. All right. The next that I'll show you is special events and same as before. On the left, you'll see the 2425 awards. Then the amount that the organizations are eligible to request and then their actual request or the maximum amount they're eligible for their scores, the recommended amounts based on their scores. And then the final column that shows their actual award. And remember, they're not prorated based on a budget cap. So to recap, the Cultural Arts Commission is recommending a $1.5 million small and major arts funding and 363,000 and $851 recommended for special events awards, and that comes to a total of 1,863,000 and $851 for both arts and events grants. Any questions? And I don't have any questions. I just wanted to thank you for giving me some credit, but I really didn't contribute much other than the one thing that I did ask of you. And I so appreciate that you have somehow made it into this, this, this budget process, which is to start allowing smaller. Organizations to come in and, and apply for grants and, and basically carve out a specific piece of the pie so that they could continue to grow in the city of Plano. I just wanted to tell you how much I appreciate that. I, I'm not a number person at all, so I can't do what you do. I don't even know how you do the percentage and everything, but the fact that you were able to make all those requests into reality is really appreciated. Thank you. Well, thank you, and I have to thank our grant administrator for her wonderful calculation skills and helping us put all the numbers together. But yes, we were to. We were also excited to receive three small arts applicants and even though one wasn't funded, we still have had conversations with them since then to try to, you know, give them some encouragement and hopefully we'll see them again in the future. And to help them, you know, raise that score the next time around. So, Council Member Levine, thank you, Mayor Diane. Again, I want to I want to echo the fact that this is a lot of work and that I have begun to see the commission in action, and I want to thank you and the entire commission for the diligence that you go through to make this work and to help our city shine culturally. Thank you very much. Thank you. And yes, we're all passionate about the arts. So yeah, it's a little bit of work, but it's a lot of fun. And we love we love promoting those events and helping them flourish. So thank you. Hold on. Let me finish the questions. Then I'll let you do a finishing plug. Council member Quintanilla thank you, Diane, for that presentation. I do have a question in regards to your small grants funding. Yes. You mentioned there's only a total of four that can be funded over the course of the years. And right now you only receive three. But do you foresee maybe 15 or 16 applying in the future? And what would that four increase. Or you're going to stick to the four. You know we're we're excited and encouraged about the review of the grant program and potential changes. And, you know, we were kind of ready to get going with that. But then the arts plan came along. So we didn't want to do things that would conflict with that. So we've kind of been waiting. But now that the there's a subcommittee with council and the city where we're going to start looking at those things, and of course, the commission will give input as well. But we've been encouraging, you know, maybe more opportunity for small arts grants. So we don't know yet what all that will look like. But those are certainly things that have come up in conversations in the past. As long as we're aware of more applicants apply. If we can just look at that max of four and increase it, because I don't want to discourage people from applying. Yeah, that's a good point. When we get there, I'm just I'm very forward thinking. So I just want to make sure we take that into account. Yeah. Very good point. Thank you. Thank you. So, Diane, now would you like to promote the event this Saturday? Yeah. We have a few of the arts groups represented here, but actually a group that's been around that we all know about because it's a collaboration of many the grant recipients. But now this coming year they will be a grant recipient. And that's collaborative. Arts of Plano is going to be presenting Celebrate the Arts at the Courtyard Theater. It's Saturday, there's an afternoon performance that's geared toward children. There'll be some activities in the lobby, and then some of the more youthful performances in the afternoon and then the evening, some of the same groups, but also some different performances in the evening geared to older audiences. So there will be how many different participants? Cindy Lawrence Hansen is chairing it. And as with Plano Metropolitan Ballet, but how many participants? We have 16 separate arts groups that are going to participate, so it's a variety show of all your finest artists here. For the city of Plano, you'll see visual arts, dance, musicians, choral music, so theater. So it's a great opportunity to for anyone who wants to learn more about the arts groups in Plano. So yeah, thank you, Julie, for remembering that. All right. Thank you, Diane. Thank you so much. Appreciate it. Okay. Moving on to the budget. Nope. We do. Nope. Downtown ped. Hi. Sorry, Michelle. Good evening. I'm Michelle Hawkins, I'm the downtown Plano manager. I'll be here to answer any questions if you have any available or any after the presentation. And also to introduce Bonnie Shay with urban family concepts and urban oil and gas. And she's our chair for the downtown Plano Public Improvement District. Bonnie, I am so sorry. How could I ever forget us? So you just didn't recognize me because I don't have tennis clothes on, so. Okay, I look like somebody else coming up. You make a great point. I think that's welcome. Thank you. Thank you mayor. Thank you, Council members, I am Bonnie Shay. I am a invested stakeholder in downtown Plano with as the owner of all the Urban's, but also as the chairman of the Public Improvement district downtown for the past 11 years. We're here tonight to request a budget, ask for this next upcoming fiscal year. Kind of feels like Shark Tank right now, but. Yeah. So as opening context for those that are unaware, when the downtown ped was renewed for an additional ten years at the beginning of 2023, the amount that was contributed into the PID from the stakeholders of downtown was reduced by almost half from $150,000 to about $75,000. And that's a direct result of the large apartment buildings. And the developers in downtown not renewing the ped. Did that go in downtown? Our current challenge as the heart of the city is to continue to drive awareness to the district and provide beautification, safety and purpose for the downtown district. You might ask now, why now? Why do we need to do this? Now for the city? Well, now more than ever, we feel like that to fully develop the downtown area and provide the right amount of events for downtown to make it truly signature, we need to add three events. And those three events are monthly art and wine walks downtown to marry the arts. With downtown the Night Out on 15th Street event, which is our long table event, kind of a signature event, I think, for the city of Plano, for visitors looking into Plano, it's definitely something that we like to showcase, at least visually. If they can't attend it. And an annual mammoth Jack Festival. The other reason for why now really is also because we want to make sure that we've got these events up and running perfected in place, and part of what downtown is. Before the shiny penny across the street, Collin Creek Mall gets fully developed and starts attracting attracting people over there. So we're asking the city Council for a total of $220,000. $20,000 just replaces the PID consulting fees that we've lost out of our budget that we had in our budget for the last ten years. That's just replacing that because the consultant is being paid from the PID. The $100,000 is the city contribution to the PID, which is really only an ask of $50,000 more than what the city has been contributing to the PID for the past 11 years. And then $100,000 is for a contract event coordinator that the PID would hire contractually to professionally execute these events that we're talking about the monthly Art and wine walks, the annual night out on 15th Street, and an annual mammoth Jack Festival, the. Mammoth Jack Festival. We can discuss. We're going to discuss a little bit more at the end of the presentation. But for this upcoming fiscal year, the event coordinator that we would be hiring would be responsible for developing this festival, executing and producing it for next year, and then following the 2026 festival, we would ask that the city supplement the PID budget to continue to perform this festival year after year. We have carryover funds in the PID going into 2026, and that's how we would utilize some of those funds to put on this first festival for mammoth Jack. Mammoth Jack, we're going to talk a little bit about the history. We expect the attendance to be about 10,000 or more in the first year to come to the festival. It will marry kind of the history with the arts. We want to be flexible on the date, but also National Donkey Day is May 8th, so we wanted to be somewhere in that neighborhood to celebrate National Donkey Day. So who benefits from this budget? Budget? Ask the property stakeholders in downtown, the city of Plano, from the revenues that we will be receiving, an increased revenues and the community that we've built and attracted over 100,000 people, really on a regular basis for our heart of our city. The outcome of the budget spend is aligned with the city's strategic plan for downtown, the city's comprehensive plan and the collaborative arts Plan for Plano. The return on investment is exponentially higher than a return from a Treasury yield or a money market yield, and it protects the historical investments that the city has made to date in the heart of the city helps to maintain and preserve our city of excellence. I urge that each of you continue to place a huge amount of focus on the heart of Plano for downtown, so that we can ensure its preservation and the importance to the lifeline of Plano. As a PID, we want to be fully transparent and share with the Council the annual progress report of the PID, which we've done in the past, and we want to develop 2 to 3 key performance indicators that we all agree on, measures the success of this city and the downtown district and the investment that we're all making in downtown. And so you say, why mammoth Jack and the mammoth Jack brand? Mammoth Jack is a historical figure for downtown, and we want to take and make it a vivid icon that makes it a memorable brand for downtown mammoth. Jack the Mule is historical, but it's also contemporary in the way the artsy design and the attitude of the mule that they are preparing. Jean Dillard, our local artist in downtown Plano and our arts district, is the one that has created this vision of mammoth Jack. The result becomes a brand for downtown district, and it's an immediate identifier of our area. And again, why what's the rationale? The history basically in McCall Plaza, that was the trading yard for mules and donkeys and horses and everything in the kind of North Texas area. And the mammoth Jack was kind of the mule that everybody wanted. And it's because it was a workhorse. And so people from all over North Texas came in and traded mules and came to that parking lot where Jay Place parking lot is today. The Heritage Farm Museum actually today still has the mammoth Jack. His name is poncho, and we'd like to incorporate and make sure that everybody knows that our own museum down the street has the mammoth jack of yesteryear. So the goals basically, we've discussed most of these, but overall driving people across town from legacy. We just had this workshop the other day. How do you visit Plano and drive traffic? You know, getting people from legacy, getting people now from the new shiny concrete, getting them to downtown. That's another reason to get this brand in place so that it becomes recognizable, identifiable to people through materials that they're seeing on Plano Et-cetera, the objectives basically, again, kind of the same thing, the license and copyright for the branding of mammoth Jack would be held in a long term minded, very community centered, 500 1C3 organization, which is the arts center of Plano. They would actually hold the license agreement in their 500 1C3. We would have a bank account set up in there, and the two entities would share in the profits from the branding and the merchandise and the events that are being held in the name of mammoth Jack. So the authorized use and the revenue generated would be very controlled by those two entities for the long term, and we would be able to do merchandizing things like this t shirts, mugs, hats, stickers, all kinds of things that we would put Mammoth Jack's face on. There'll be different iterations of it. Not all of them will have to be with the sunburst behind his head, but generally the trademark is the mammoth jack, and there will be a website. The website will be linked to visit Plano and all other websites so that you can go see what's happening. And you can also on the website, order materials. That are branded. And then the mammoth Jack Festival will become kind of an icon of the city. Also something people will remember and visit. Plano would, I think really benefit from because nobody else does that. And then we would have banners and things like that, and maybe introducing mammoth Jack as we roll this out and we roll the brand out, maybe these signs say, have you seen Jack? And people would be like, interested in asking, what does that mean? So yeah, as you can see, these are other city branded icons that we have that other cities have done. And so our idea would be to eventually do a 3D kind of version of our mammoth Jack and have various artists and things paint, you know, the 3D version of the of the mammoth Jack in different art colors and things and place them strategically around the downtown district. So that's all I have. Thank you. It's exciting. No, this is you know, I've lived here a long time and I wasn't aware of mammoth Jack, but now I'm a huge supporter. I'm a huge supporter. Council member Levine thank you mayor. I am a big fan of mammoth Jack and have been since moving here and understanding the historical context. And I, I really want to applaud you on taking advantage of that and making it the proposal to make this a an event to attract folks into our city and for us to enjoy this cultural icon. So thank you. Awesome. Thank you, Deputy Mayor. Exciting. It's wild to see your signage. It's got the feast sticking out right? Yeah, yeah. So I think Bonnie and I met in around 2010 and watched the evolution of different festivals, festivals downtown was one of them that that we had. And I know this is a vision that you've had for a long time. I mean, you've you've paid homage to the history and urban crust, the photographs on the walls and the saddle and, and all of that. And I just love how it ties in, you know, with the farm down the street and poncho down the street and including the, the arts groups. And I know I'm leaving something out. There were a lot of dots being connected that, you know, I like to connect the dots. And I just think congratulations for and I know you've been working on this for a lot of people have been working on a lot of people, but you've been kind of like, you know, staying on top of it. And I love it. And I think it's really exciting and, and it's unique. And I can't wait to see what it turns into. So great. And I know y'all are y'all know we're doing the alley project that's kind of in the works and everybody's aware. But, you know, for example, there is a mule alley in Fort Worth. We can name our alley too. We can have a different, you know, so that's another aspect of it too. Perfect. Councilmember. Thank you, Mr. Mayor. Bonnie, great presentation, but I'm not sure this is something addressed to Bonnie, but it's really one to get traffic downtown. I recognize that this year our July 4th parade was over there at Oak Point. I think it'd be a great idea. And I don't know what the cost and logistics here is, but to be able to have that 4th of July parade come along 15th Street so people would gather there. And again, the idea is to cross the threshold of the local stores there. Don't get me wrong, the fireworks are great at Oak Point. That's the only place we can have it. But you know, to have the 4th of July parade during the middle of the day in downtown, then have tractors and bring poncho and push Jack, I think it would just be a great idea to be able, if there's a way we can do it. And again, there's the logistics to it and everything. But again, this is just be a way to get traffic downtown. So, Councilman, we have had parades in downtown before. One of the one of the challenges or limitations we have is the rail line right there because they don't stop. So it makes for a little bit of a hazard with, with parades. But we we're happy to revisit that as well. Bringing it back downtown and looking at those things. We're happy to do it. Great. Thank you. Bonnie, thank you very much. Okay. Now moving on to the budget update for the five rear financial forecast. Hi, Karen. Good evening, Karen Rhodes Whitley. Tonight we have Matthew Garrett. He is from New Gen Strategies and Solutions. Just to give you a little bit of background, the city of Plano, we've had a three year financial forecast that we have done for ages within the fiscal roadmap project that we have going on. We decided to move to a five year financial forecast, and we hired them to come up with an economic matrix model for us. We actually introduced this back in March when we kicked off the budget. We have a phase one and phase two going on. We've ended phase one. He's going to provide an update on where we are and what the projections look like. Now that we have all the central appraisal districts and our tax stuff in, and then we will move into the phase two this fall, the whole model will be done by the end of the year, and then the budget department will take over the model. So we will have a brand new five year financial forecast to introduce to y'all next March when we kick off the budget. So he is going to go through. The revisions and the updates with you. Go on Matthew. Thank you Karen. Good evening. Mayor and Council Matthew Garrett with Nugent Strategies. Good to be back in front of most of you. Hi to some of you that are new. So if this is a repeat bear with me. A lot of these slides are similar. We haven't changed the major constructs of what we're doing. We've added a few things. We've simplified a few things, ultimately kind of under the hood. Some of it was getting complex, but I do want to go ahead and step through. First, starting off, I want to commend the city for having sound financial policies. I work around the state, out of the state as well. Constantly. I hear we want to do something like Plano. So your prior three year historical was well regarded and this five year and then actually behind the scenes there's a ten year perspective coming will only help continue to put you as a city of excellence into the future, help you to accomplish the strategies that the city and you as a deciding body set forth. Ultimately, Karen's already shared what we're doing, and so I won't belabor that point. We've updated the model inputs, so we're here to just present what those look like. So ultimately expenditures are anticipated to rise sort of a compounded average growth rate right 3.2% year over year as we've modeled this. This is using your 26 preliminary budget or proposed budget I guess at this point as a starting point, we've also added in some known and expected expenses over time. Those would be fleshed out in future years for decision. But if you don't look ahead with some anticipated additional services, it may be near-sighted. And so we have asked staff to provide some of that input. And that would surely be refined in step or phase two and in future years. So all that to say, you see the bulk of your cost, not surprisingly 70% or so is in personnel and the balance going up. Again. Just a quick summary. We have applied some general inflationary factors salaries at 3%, benefits or health at 4%. Additionally, we have general inflation at 2.5. We'll spend a minute on how we came up with that. We don't make up that number. We do rely on some statistical modeling around financial forecasters out of the Federal Reserve in Philadelphia. So that's what this point is. This is what the I think it's 60 or so data points, this most recent sample and this most recent quarter, I didn't get a count on before I came. But ultimately there are professional forecasters that provide their input quarter by quarter. So we've taken that. The way they see it going, it's going to be about 3.3% on average. We've we've assumed we ought to conservatively budget, and we've taken the 75th percentile as our starting point. That said, it's a little not bleak, but maybe optimistic on inflation that some of it's coming down. So ultimately in 26 we haven't used that data point. You'll see it averages at 2.72.9. But we're using your budget for 26. So really the only thing on this slide you need to focus on is 27 through 29, where that same group says the 75th percentile is going to be around 2.5%. This is something in the tool. This is something your staff can update. This is as simple as an Excel input. If you want it to be 17%, by all means it could be that too. But this is the method employed we don't want to over assume inflation. Additionally, on expenses you have a substantial transfer out amount. We've assumed that amount to stay steady. Again we do recommend the further you look out, the more you examine all those transfers, the more you refine the model. But right now that's an assumption. That's everything from your capital maintenance to risk management and the like items are all familiar with in the budget, I assume. So getting on to revenues expenses are relatively static. We talked about 26 as a starting point, a couple additional expenses and inflation. Now the big ask is what do we do about revenues? The primary revenue for the city is undoubtedly the property tax, approximately 50%, 47 or so percent of the total revenues covered next 20 plus in sales tax. So those two revenues alone are critical. And your ability to manage and fund the objectives and the programs you put in place. So currently. We've looked at the property tax assumptions. There's a data point labeled 2025. We are using October data points. But you'll see against that trend line a pretty strong R-squared that we've looked at this and we found this correlation, if you will, that 1% of increase in the housing price. This is going to be the Dallas, Plano and Irving metric for housing price index correlates to about 0.75% in real valuation growth for your community. So the way that pans out, just to kind of step you through at the top of this chart, there's a historical housing price growth that is put into the statistical model. We grind that out. That gives us an actual projected growth. 75% of that is then used in the model. We have to also consider an impact of the cap. We'll talk about some of those senior tax freezes, as well as the cap that's imposed by Austin more broadly. And then we back out the historical exemptions. But that's the methodology in this model that your staff has and that we are using. It is as imperfect as many. It we are we are feigning precision. We're doing our very best with a lot of variables. And so I don't want to shortchange that. The Earth could move. Every statistical model has an inflection point that ruins it, right? If you've played that game any, you're familiar with that. But what we're doing is we're using our very best methods of possible. We're also assuming a reversion to the mean, right. Most of you are familiar with that concept that over time it may come back and we're letting that smooth out. But but that's what we've employed here. Any questions as I go. All right. So your senior tax freeze, you're not alone in having this policy. But what we are seeing over time is that amount is burgeoning. It's growing right now. That's 14 or so percent of your total taxable value. We think by 2030 it may be 17 17.5% of your total taxable value. So it's not again bad. But what that means is you've lost a potential of we'll say roughly a third just based on this bar, a third to maybe 40% of that increment as those tax freezes. Come on. Now, we don't know the crystal ball perfectly, but we have assumed that wouldn't continue to grow beyond 17.5%. There clearly is some room for oncoming tax freezes and natural attrition that occurs with that same exemption. Right. So these are just factors around your property tax. Pretty critical. Your primary revenue. These are all the things that can be kind of manipulated within the model explored for various options. Should you want to look at scenarios as opposed to a static scenario. Lastly, we do have the sales tax revenue. We have found this to be very close to staff predictions. We've again commend the city for having this three year average policy. That's what's plotted on here. You have that three year average which is your actual budget line in blue. You have the actual amounts received in a given year in yellow orange. And that delta is a contingent reserve, that the city has a number of opportunities to employ as they choose on capital, on one time things and the current year. So we've held to these same modeling principles for that particular sales tax assumption. I will say staff relies on the McLean decision systems, I believe, or Lewis McLean's modeling. So we've just adopted that and employed it as well. Lastly, you have a number of other smaller revenues, but cable franchises going down. Other franchises may go up. We are looking additionally at your water and sewer rates. Again, we've looked at that this year with you. And so as that number moves, that is a transfer that can help the general fund. And so that's modeled as well okay. All right. So maybe what's more enlightening is the actual cost next to some revenues. Right. So let's talk real briefly about the revenues. This is the no new revenue rate I think Karen teaches a course on this. So I won't purport to teach you no new revenue. But if you were to adopt that rate, you would have these revenues over time. There is some natural growth in that because you have growth and you have some additional revenue potential from improvements. That's approximately $750 million per year for the first two years. And then we go down to about half a billion per year in the last three of this horizon. So expecting some growth but not being too optimistic. That's 2.2% per year. Again, that if you recall the last slide at 3.1 doesn't work. It's a little less than. So when you plot those two together you end up with this line. On the left. You have the total appropriations against total revenues. Generally, the revenues are south of the appropriation need or the expected need. As a result, you would decline in fund balance and not be able to hit your 60 day working capital mark. All right. On the other side, there is a VAR or voter approval rate. Again, you've probably heard this phrase a few times already, but if you were to adopt the VAR in this first year, in full disclosure, is the VAR with an increment in fiscal 26, but the rest of the years are assumed to be the VAR. You would have approximately 3.7% per year annual revenue growth. And the way that plots out against your expenses is you're still south, right? Actually break even in 27. I thought we got south. So you do add four days of working capital even in 27. But you'll see that number continue to tick up. So you would have what I call headroom to make some decisions about additional needs or about additional expenditures. More than likely you're not going to adopt VAR every year. And so what we're kind of presenting to you are two extremes. The no new revenue that doesn't seem to hold to the plan of spending, at least as we understand it today in the model and the VAR, which is more than adequate for the planned level of spending and may give you an opportunity to increase service levels should there be other needs we've yet to identify. So really, we don't anticipate that we are going to set no new revenue or VAR on the nose in any given year. We've just modeled those two extremes to show you that you have a window of opportunity between those two bounds to achieve what we are told you're expected expenditures are. So again, no, new revenue is not sufficient to meet plan VAR is more than sufficient to meet plan. So some blending of those two, or a middle point we think will adequately fund what we understand to be the needs of Plano. So a couple caveats I won't read them all. Clearly, this is a big assumption. Last point to Karen's point. We are kind of winding down this first phase. We've kind of presented it here. We've worked with staff, we have cmo's input. We'll get more of that as we move on. And the next phase we'll have a couple other things, like the INS portion of the rate, looking at some other areas around economic development. So with that, thank you and be happy to answer any questions the council may have. Any questions. Bob, thank you so much for this presentation. I think it's really interesting. The model you developed, is it based on other cities you've done, or is Plano so unique that it's very specific to us? So it obviously there could be some overlap. But Plano does have its own policies. Not everyone's doing this three year sales tax. So we do think all of our products are tailored. But it's Microsoft Excel. And so we start with a blank file just as you would if you opened yours. But then we take Casey and his team have provided your budget format and layout and data. Right. And then we have others in the audience here that I get data from frequently around their certain niche areas. And so each model is technically tailored, but we all play by the same state rules. Now, the local policy may be different, and the local needs in the next five years may be different, but in truth, each model is unique in the fact that no two budgets are alike. As as much as I wish they would be. But we don't have that luxury. That's helpful. So you've really incorporated our policies into this. So when we're making adjustments to see what's really going on, and if we're trying to view the future a little bit, we can tweak it and we know it will be within our policies. Yes, sir. Absolutely. So we have the one KPI or key performance indicator right now is your 60 day working capital bar. Right. You may have some others. Again, those are just metrics to be applied. If we need to bolt on to what would be a dashboard. But if it's foregoing interest by cash funding, we can measure that over time. We can certainly estimate that into the future. So yeah, a lot of opportunity, but it's only limited by the number of sheets I can add. Very good. Thank you. Yes, sir. Mayor Pro tem. Yeah I just have a question for clarification. So. Yes, ma'am. When you were talking about the no new revenue tax rate, you showed a working capital continue to go down. But but you're you're also making an assumption that the, the, the tax revenue generated in city of Plano is continue to go up. Right. Yes, ma'am. Because the no new revenue is that same revenue from the existing or prior base. Right. Less some adjustments for refunds, less some adjustments for TIF, etcetera, etcetera. But they're in there in after is that 750 million I referenced. That's additional improvement value. So that alone would create an opportunity for additional tax base for that tax rate to be applied to for an additional levy. So the total levy does increase and the rate can move. But you're making an assumption that the property the property value continues to go up. Oh yes ma'am that as well. So absolutely if the property value does not continue to go up, let's say it starts going down, then the no new revenue rate will not be sufficient to even cover for some of the depletion that working capital is that I can defer. But what I think is you're ultimately going to have a decreased denominator or amount, right. You'll have less value. And so your tax rate to be same revenue or levy actually increases. So it's that simple algebra of total value. And a rate for an output that's similar from those same properties. So if their value went down presumably can you give me some numbers. Sure. I'm Mayor pro tem. One of the things that I think to realize on that, especially in the model, is that with the no new revenue rate, your expenditures are growing faster than your revenue is. So it's 3.2% versus 2.2. And so when you have that, you're actually increasing the gap between what your expenditures are doing versus what your revenue. Even when you're making the assumption that the property values are going up. That's correct. But if you continue to use the no new revenue rate, the expenses will continue to overcome the no new revenue rate. They outpaced the growth. The growth of expenses outpaces the growth of revenue. So if the property value actually comes down, rather than the assumption going up, then what happens that that gap grows faster? Okay. And would that be very significantly felt like within a year? I mean, is that something that so typically property doesn't doesn't have quite that volatility of shifting, you know, 20% decrease at any given? We'll see it as it comes down. It would be more gradual where we'll feel it faster as sales tax, sales tax actually swings much is much more volatile than property tax. It may be more nominal to your point, but it does. The impact of the no new revenue is to generate the same amount of revenue year over year. So that calculation does have an adjustment that would allow you to increase your tax rate to generate the same amount of revenue. And just just so you all know, the on the property tax, it's a lagging indicator. So back during the great economic recession, we did not see the effects of that big recession going on into what 2009 ten. It was a total because January 1st is when they appraised property. Okay. So you got to wait all the way to January 1st to the next year. Then you're not getting receiving your tax roll until that July. So it's probably two years lagging indicator now on his no new revenue chart. Before he had two yeah 2.2%. What we have included in here is our normal assessed property value going up 3% per year now could go down. But at the end of the day the 2.2 is because in the no new revenue rate, excludes. Is your new property value coming on. So if you're keeping your existing property value even flat. But I'm having 750 million. Come on. You're going to have some kind of increase. But if the existing property values decline you're not going to see it for like two years. Okay. Thank you very much. Okay. Also, I do want to say something real quick while I'm up here on the voter approval rate. What is not included in here? The only extra expenditures we have included in here are the ones that we know that are going to come along with the capital improvement program because the bond referendum was just approved. Okay. That's our second phase that we're going to work on this fall to get everybody's expenditures going forward that they know about, and updating the model with those. Okay. Yeah. Any more questions. But all you're up. Yeah I do have a question. There's a slide on there that you showed percentage increase I think it was like salaries 2% gas water internet. Does your model financial projections show a range of like 2 to 3% or. I'm used to working with a range within that budget, not necessarily just a flat percentage. So we don't have what would be like a scenario or a range for as many variables as we have. Right? We do certainly on this sales tax, we kind of modulate a little bit or move around and see what that does. And we've done the same in property tax. One example is this no new revenue. So we're moving the key dials. We're not fine tuning like okay that's an old reference. Some of us know what the big dial was. It was a fine tuning. But. Yes sir. Yeah I was just curious because usually when I have that range to deal with, I can pull a little bit of that percentage from one and place it into another category. So that's I was just curious. Oh fair enough. No. So it is static. But again, you could build a scenario and review it with a change set. Okay. I just didn't want us locked on say a 3% salaries and 1% gas or. Yeah. So absolutely. Thank you. Sure. Council member thank you. Mayor. Slide 11 on the property tax freeze. Oh. There we are. Okay. You note and I'm not expecting you to be able to predict the future so far out, but you've been looking at demographic data which shows this peaking around 2030. Do you happen to know if that demographic data shows this leveling off, or if does it start to drop? Because I think at some point it might be really important to know that answer. Yeah. Feel free to field it first if you'd like. Yes, ma'am. So they asked me for this data the other day. And anyway, to make a long story short, the city has some senior demographic data. It was done in 2020. The planning department right now, though, is updating that information, and they're apparently updating it based on some big study that just happened. But we're not going to have that until the fall. So anyway, this was the best we could do to put this in here is just show it. Probably at 2030. It could be 2032. I bet it's about 2030 though. Thank you. It is coming. Okay. Thank you so much. Thank you. Appreciate it. No, ma'am. Mayor, can I just add in real quick, please? One of the things council that kind of going back to the prior council, the reason why we do the modeling and the reason why we show this is, is looking at the consequences of decisions in multiple years and taking that aspect of not just looking at it as a single year, but looking at it in context over the next several years, because everything that we program this year is likely to continue on in future years. So we're trying to make sure that we're we're looking at this over a multi year basis so that we the decisions we make today don't limit our our ability in the future. So that's one of the reasons why we have the five year model and we're proud of that. But it's something we're committed to continue to develop and make sure it's robust and gives us the ability to make good policy decisions with our budgets. So that's just a little bit of background. Appreciate it. Okay. Just a recap on assessed property values. Your assessed property value this year is $64.6 billion. You have existing property value going up 1.7. And we have new growth at 650 million. This right now, our average home is $591,947. This is the tax rates that are included in everybody's budgets right now. We did include the $140,000 exemption or homestead exemption. The state we're going to have an election on that. I think it's November 5th. I'm sure it will pass. So an average home owner would owe for all four entities a little over $8,000. Now, the other night, I told y'all that all the different cities are hosting what y'all are doing right now. They are going through and they are filling out the form that we discussed the other day. It should have hit the newspapers today, if not tomorrow, where you set the tax ceiling, you cannot go up from that tax ceiling, but you can go down. And of course you're going to adopt the budget on September 8th. Our next city council meeting is August 25th. We have put on that meeting. We have a public hearing on the budget. We have a public hearing on the tax rate. Also. Right after that, we will have a discussion on how y'all want to approach the tax rate, because on September 8th, we will be bringing back all the ordinances. You will adopt the tax rate, you will approve the budget, and you will approve the capital improvement program. We made calls to all these different cities. They're going through their budget workshops right now. I do want you all to look at this chart. This is their proposed tax rates, either included on the form or the city council's already decided which way they were going to go. I will let you know. The city of Arlington, they are going up $0.03 or that's their tax ceiling is to go up $0.03. A lot of these cities chose to stay the same on the city of Frisco. About cried. You all had did that 44.06 the other night. I was like, oh, you know what? Even if you apply, the 20% will still be under Frisco. However, Frisco went from a 15% homestead exemption to a 20% homestead exemption. So we'll just be a little off from there. At the end of the day, your effective tax rate would be 35.2 $0.05. That's if you go with the 44.6 cents. Frisco is now at 34.04. Whereas before they went up to the 20%, it was 36.17. So that's just to give you a general idea on the other cities and what they're doing. We had talked about the proposed tax rate that was included in the budget, the no new revenue rates, 41.9 $0.04, the voter approval rate without the tax increments, 42.8 $0.06. And then with the unused increments 44.06. And of course, y'all seen this chart before. This is what was placed in the newspaper the other day. The 44.06 at the end of this meeting, we do have a section to discuss the property tax rate. Let me move on to sales tax. As everybody's mentioned, we do have a three year rolling average on our sales tax cap policy back in 2023 when we moved out of Covid, the City Council made the decision we could add 3% on top of that. And a look at this year we are expecting or anticipating 124 million for 2425 and your new sales tax cap policy with the 3% inflation is 122 million. I will let you know that yesterday we received some new numbers from the regarding sales tax, the sales tax for the month of July had a very big increase on it. However, I do not trust that increase whatsoever. We have not received the details from the state. They have had large swings with other cities going on, and it could be that could be a mistake. So once I get the detail in, I will notify Mark what the actual number is. So just to let you all know, this is just a look at our percentages. In 2324 we were up 3.6%. And then we're expecting a 5% increase this year. We actually very much lucked out. A lot of cities around us, their sales tax has gone down and ours has remained relatively flat this year. This is just a look for y'all. Our non-retail collections is 67% this year, and our retail is 33%. Sales tax is very volatile. So the minute like an economic recession happens, it's not the retail part that will go down that we see go down. It's the non-retail part that's going down or the business to business. This is just a look at your different places. Hold on just one second. And we're the sales tax is coming from that green bar leads the way. That is your general merchandise stores that's talking about your Walmarts, your targets, your Costco, that maroon bar. It says here, hold on just one second. Nonstore retailers. That's your Amazon's. That's the ones where goods are being shipped to their homes. Okay. Just to let you know. And then that third bar is your food and beverage. That's retail. Non-retail is your professional services. The second one is going to be your IT information services. And then your third one is hotels and food services. We actually are one of the top in the state as far as sales tax per capita. Right now for 2025, we're estimating about $416 per capita. That is very much I forgot what he said. I think we're third or fourth in the state, and a large portion of this is the amount of money that is spent in on our businesses. Okay, just to reiterate the fact sales tax is very volatile. Competition from surrounding cities, economic conditions, business to business audit adjustments. We get hit with very large audit adjustments. That's why I'm in fear on that. The sales tax check that we just got, that could be a big audit adjustment, which we need to remove out of our three year rolling average. Okay. And now we're going to well do you have any questions. Okay. Keep moving I am okay. We're going to discuss water and sewer rates a little bit of background. Last year we hired a new gen. We are on a three year rolling cycle as far as bringing in consultants for water and sewer solid waste. And then we're going to start up with municipal drainage rates anyway on water and sewer. Last year, Matthew will explain more about this, but there was a big decision made. We used to we had a low tier rate and it was subsidized. Last year, the decision was made to phase in over three years. At that low tier would be paying the price of an actual thousand gallons of water. Matthew, come on up and he's going to explain more. Oh, some good news though. Within last year we were supposed to go up 8% on water and sewer. We only need to go up 7%. I will let you know. I called around today. Frisco's going up 9% on water, 15% on sewer. Let's see. Richardson's going up 4%. Water, 15.5% sewer. McKinney's going up 4%, water 5% sewer. That's all the time I had to do. Anyway, most of the places will be going up on water and sewer. Excellent. Thank you again, Karen, and good evening again, Council. So yeah, just a recap for those that didn't see it last year. We'll go very quickly through sort of the rate design. What we've changed. Last year we did have an anticipated increase this year of 8%. As Karen alluded to. We also have that last bullet where we've changed that rate design on our tier, which is the block or the lowest volumetric grouping of water. We bill for at 1 to 5000 gallons. It was less than the cost of water. And council last year decided to move away from that and at least break even with the cost per unit from North Texas Municipal Water District. So again, this is the original study or last year's study. We had 7.5% put in place. We expected 8% this year. For the sake of time, I'll go a little quicker. We have updated this effort to include your 26 budget. Most notably, we had a slight reduction to the anticipated North Texas Municipal Water District water rate. That, plus other adjustments in the budget, have allowed us to recommend a 7% increase instead of an 8% increase to both water and wastewater this year. With the one caveat we're still correcting that subsidized, we'll say rate to bring it up. So that's the one item that's unique. Ultimately, as we talked about in general fund, you do have cost pressures just as these other cities do. Wholesale services are going up. And so overall your cost to serve is about 8.4% per annum in this particular enterprise. So a 7% increase is quite positive. And last note, about 70 to 72% at the peak of your cost are really from your wholesale provider. So again this is just a proof, if you will, a dashboard that says if we raise the rate 7% and then again 8% for the next three years, we're okay. Now we are south of the line in of the 90 day in 28 and 29. We're also hoping for future change conditions. We actually say this in a number of communities. We like to look out five years, but we don't have to bank on it being perfect. You have next year to adjust, so that's why we've allowed that to be south of the line, because it's three years into the future. You or future council can can make adjustments if needed at that point. Okay, so a quick lesson on what we changed last year. If you weren't on the council at that time, we held the minimum rates the same. We took a 131 increase on that first rate. You were charging less than a dollar for water that cost for per unit or per kg or 1000 gallons. So we moved that up to 220. And we had the related increases at 7.5%. On the other volumetric rates this year, we are recommending an increase of 7% also on the minimum. So you'll see that's a highlight. That's going up 7%. So two are the bottom three tiers. That 1000 to 5000 gallon tier is recommended to go up by $1 and a quarter. And again that's 345 against a rate today that's still $4.14. So it's still not quite paying for itself. Next year will will complete the three year phase in. Or we anticipate or recommend that that council approve rates that are at least equal to the cost of water. Here are the impacts to those ratepayers. So this is a typical bill. I don't have to go through all of them. This is 10,000 gallons of water, a 5000 gallon winter average. Pretty close to your normal. It's about 11,000 technically, but there's certainly some outliers we didn't exclude in your residential class and commercial bill. Here are some bill impacts as well. Again, the good news is Karen said this is less than what we thought it would be. That said, we have to point out there were future increases still needed. All in. We have a number of changes that I haven't plotted, as Karen alluded to from your neighboring communities. They haven't put it in writing. I haven't put it on a slide, but we anticipate they are going to increase as well. Even if they did not, you still would be middle of the pack with this increase. Even greater disparity. When we have more water consumption at 10,000 gallons near the bottom, moving up to the bottom third, so too with 30,000 gallons. I want to go too quickly, but I'm not hearing questions so I can breeze by commercial. Bill, you have those impacts in your packet. Not the lowest in town, but not the highest either. Ultimately, here to answer any questions you may have, but we'd recommend that you adopt that 7%. And again, that first bill tier at $1.25 more than it is today. Karen, I do have a question about what you just said about the neighboring cities rate, and you broke it down between water and sewer and the sewer obviously being higher percentage than the water. So in city of Plano we have one rate. Is that is that oh no, we're going up 7% on water, 7% on sewer. You want your water to pay water rate to pay for your water and sewer rate to pay for your sewer. We have two rates. It's just it's the same percentage. Same percentage. Yeah. We try to level it off. And then the second question I have is even though the neighboring cities are increasing it dramatically, is it because they didn't do what we do in tearing the increases? Or is it that they are doing tearing but they're just going up higher? I cannot answer that question for you. Depending on you probably can answer it best, but what I know is each city has their own different rate methodology. It's just like for years we kept that first tier. They were no more near paying the price of water. Nobody else did that. A lot of them. I'm going to let you talk because you know more about this. I understand you better care. Oh you do. Oh my goodness Matthew, sorry. Maybe I can take over your job. I like I retire, I mean retire. I would just add in Mayor pro Tem that sometimes there's a subsidy between the between those because it comes on one utility bill. Sometimes you'll see cities that have a little bit of a subsidy. That water may be paying a little bit for the sewer or it those, those rates can become unbalanced in that as well. But for us, we try to focus on on that collection of water, paying for water, sewer paying for sewer, and this recovering 100% of the cost for that utility. And so our discipline in staying with that methodology has worked very well for us. And so for these other cities could also have major capital campaigns. They could have all sorts of things going on in those utilities to help drive some of those costs that those directions I see. But this year though, they're all going up. They they are and we share the water and sewer side of things can also be slightly different operations from city to city. So they're sometimes it's apples to apples, sometimes it's a little apples and oranges I see. Okay. And they have been for years because of all the growth that's going on. So it is that's true. It is increased almost every year. Yeah. It will increase every year. And I will tell you this, they have they're having to issue a lot of debt, especially this year on the sewer side. And I was just thinking to myself, why didn't I bring down the list that they gave me a whole list on why their increases. And that's why you see sewer going up so dramatically. Got it. Thank you Karen. Okay. You're done. Anybody else? Okay. All right. Abby, I'll call you tomorrow. Yes, ma'am. Okay. Good to see that. See? Good evening, Abby Owens. I'm the director of public works, so I will be short and sweet. So our rate study, we also use new gen a couple of years ago. And we set the rates that we looked at through 2028. And so we're just continuing on that track based upon what the model showed. We're proposing a $1 increase to the 95 gallon gallon trash cart for residential. And then we proportionately apply that same increase to the 68 gallon and the extra cart. And that's what's proposed up here. Just for comparison, this is the first time that, well, since I've been in the city at least, that our Plano solid waste rate is going to be higher than the other member cities, that everybody is proposing a rate increase. And everyone has different reasons for how they've gotten there for us and where we've proposed that $1, it gets back to our fund balance. And I'll show that slide here in a minute. But our goal is to be at 45 days for the Solid Waste fund. And we still have the $2.5 million loan that we took from the water and sewer fund that we're working on repaying, and that repayment started in 22 or 2324. We're also proposing, based upon the new fiscal roadmap fee recovery study policy, we're also proposing a 10% increase to our commercial rate for downtown customers. The city owns a combined basically processing area to take solid waste from the downtown businesses. And then we have a partnership with a apartment complex for other businesses to take it there. The reason we operate these is it's too tight of an area for each business to be able to have their own dumpster. So we decided to come up, came up with this and implemented this process. The last rate increase was in 2011. And since that time we've had equipment that needs to be repaired. We have to do increased cleanings. We used to only increase it twice a year. We now move to monthly just to improve the area and make it more pleasant when you go in to dispose your trash. But these are our proposals. We're going with the 10% increase that was allowed underneath the fiscal roadmap policy. And then we will actually incorporate this into our rate update that we work with new gen next year to be able to update our solid waste rates again. And then here's the solid waste fund balance. As I mentioned at our current estimate for this year, we're projected to end at the 45 days of operation. But I'll just remind you, that does still include the $22.5 million loan that came from water and sewer fund, and that's it. All right. Any questions for Abby? All right. Vidal I did, but I did, but she kind of answered on the last slide, but I'll go back and look at it. Okay, I was curious, what's the average days that we should have? Because we're at 45 now, and I saw 77 and 2016, I wasn't sure. Should we be up with that like 55, 60 or are we comfortable at 45. So the policy we actually updated it two years. Well this year we changed it. It used to say we would like for it to be at 15. And as you see, we used to draw that fund balance down pretty low. And whenever the recycling changed where we were no longer getting significant revenues for recycling, that's when we really had to reevaluate. And so we updated the policy this year with the fund balance to say the goal is 45 days, and that's what we're trying to be around. And then by having continued modeled rate increases and knowing what we need to be at that, that's what we're aiming for. So you're comfortable at 45. That's what we think based upon what we've looked at and where we are, we feel that that 45 is a good number for now. Perfect. Thank you. Okay. All right. Municipal drainage. Come on up, Caleb. Good evening. Karen, is there anything you need to say first? No, you go ahead and do yours. Well, I guess I could go before you just real quick if you wanted me to. At the end of the day, there seemed to be some discussion regarding the rate increase we're proposing, and I wanted to let you all know I was sitting in the audience. We need to have a rate increase. Whether or not the stream bank program is added, it is not due to the stream Bank program. Back in 2020, we came before council. The Collin Creek Mall culvert was about to begin. At that time, we needed a significant rate increase because we had not had a rate increase in over ten years in municipal drainage, the city council at that time said to phase in the rate increase over three times, we only needed two. We have not increased these rates since 2020. We have a significant CIP program that we are trying to keep up with. Also, we have to keep up with t-c-e-q mandates. We have inflationary costs. So whether or not the stream bank program is done or not, a rate increase is required in here. We also have to it's 1.25% over the debt service costs we have to keep in the fund balance. So we're we're not even going to hit that next year. Now on this slide it shows no rate increase, no stream bank projects. The next slide shows rate increase. No stream bank projects. So at the end of the day for 2627, we'd be left with $3.8 million. You see the red in 28, 29. This rate increase that we are proposing, which is dollar and a half for residential going up 0.02 $0.08 for the commercial side, is only going to last three years. We have a fiscal roadmap policy now that states that all our enterprise funds need to go through a study every three years anyway. So we've got that. That's our scenario number two. Number three is if you do the rate increase. Oh hold on. In the stream bank projects I don't know why that says no. But this is supposed to be stream bank projects. At the end of the day we're going to issue the $10 million over a three year period. Once again, we will be back in 2829 redoing the program. And this is just a summary of where we're going. So I just wanted to get that across to everybody. Unless you're just going to completely cut out the CIP program, we need a rate increase in this fund. Now I'll let. Going. Caleb, talk to you about the stream Bank program okay. All right. Good evening. Caleb Thornhill, director of engineering. So we've seen this timeline several times. Real quick, Caleb, do you want me to wait? Councilman Anthony, did you have a question? I did, but Karen walked away from the mic. But I had a she still has a mic over there. You're good. Well, it's because you jumped real quick. But my question was because on scenario three, you showed the stream banks over three year period. Yes. Are we able to do a five year period and maybe split that cost a little bit more, or does it need to be? Well, if you're going to go over five years? Russell, what was that number if we were to keep it positive for the five year period, an increase on. Yeah, the increase on the residential. It was significant 47% increase. Yeah. So we've got built in here. What is it, 28% increase. We were going to have to go up 40%. Yeah. That's how scenario one and scenario two was without the stream banks. And scenario three was with the stream banks. But a three year period. So just curious what the numbers will look like at a five year period. So no, we could we could if we wanted to extend out the critical group instead of doing it over three years, doing it over five, we can run the numbers to see what that would look like as far as allocating out over a little bit longer, period. I think that's that's what your question is, correct? Correct. Yeah. Because I think at the bottom scenario three, it showed those numbers. Yeah. The 2.8 million was the delta versus the I guess it was 1.7 or something like that. Yeah. So I was curious. So yes we could extend that out and run that to look at that. Perfect. Okay. Thank you Karen. Next time I'll hit the button faster. But nobody was at the I apologize. I'm sorry. I'm so sorry. I thought that was a good time. Okay. All right. I'm getting my steps in today. Okay. So timeline, we've talked about this. Obviously we're here tonight to discuss the rates. But also more importantly for me is the policy. So I just wanted to you guys have seen this pie chart before. Shows the 3000 locations. What we've also added there to the left. As you can see, the locations 646 locations that scored below a 60. So just to get an idea, if we just were focusing on the 60 and below, it's 646, 425 parks, 180 private owner. And there's been some discussion, and I think Mark sent out some information. Understand private owner is a private residence, a commercial property, a box store, a golf course, an RT, a railroad that is a non city owned property. And that's what we've considered private property. So again the this was the list that Mark had sent out. As far as the ownership. I just want to make sure that you guys have seen this. The 0 to 20 of the critical. There's for residential or that I believe have the homestead exemption which council member Homer I think asked last time. You see the one has a North Texas municipal water district and city. It is actually on city property. But the reason we would do the project is because of a district utility that is needs protection. We have notified the district of this location, but they have not done any improvements. It falls within that critical number. There's four locations along golf courses. There is a fifth one that is actually bordering between a HOA and a golf course. And then that's what makes up the ten total locations in the 0 to 20. So ownership we've kind of gone back and forth. This is anytime we have any kind of participation. It does create some challenges on timing. So what we had proposed is a 10,000 flat fee. That was some of the feedback we received last time for residential and HOA. And then a $20,000 flat fee for non residential. What we propose is that the acquisition or the rights would be given to the city at the beginning, the flat fee would be received at the beginning. The city would then take that and perform a boundary survey to identify any encroachments, whether there's a fence that needs to be moved or a deck, gazebo, whatever it is, that those could be adjusted. Before we begin design. Once we begin design, that would be after the acquisition rights. The fee and the encroachments have been removed. Then we would begin design. And then once the easement was identified, we'd attach that to the agreement. That's what we have proposed from a timing. It obviously creates challenges because depending on how many properties are involved, you may be having to extend those time frames out if you're waiting until that point. But that's what we've put on here for a proposal. The maintenance has been talked about several times. The maintenance is another very challenging component. We've had some conversations internally. We did some quick numbers on maintenance. There are approximately 100 locations that we felt like potentially city crews could do, from 0 to 60. There's approximately 2000 locations that are above that, and that includes all properties. So there's a lot there's a huge volume of numbers for that. If the true goal of a maintenance project is to prevent a location from getting to critical, we feel like what makes the most subjective sense is to start at 21 and work your way up from there. Addressing a project at 89 versus addressing a project at 2121 will get to a critical component before 89 will. From a subjective standpoint, it just makes the most sense. And then when you look at the sheer volume of projects that we would have to do, it's really the what we can come up with from a best solution. Now, what we've also done is, you know, there's locations that city staff can do. There's locations that we could hire a contractor and say, this is a requirements contract. Here are the types of improvements you're going to do. They may be able to get more of that volume done. And then at the end of this next year we would evaluate and say, okay, what what how much did we cover? What are we moving through? What could be our budget? Do we need more staff to address more of those locations. So kind of evaluate that over the next year and then see if we need to propose something different. But that's where we feel like we would move in this direction at this point. So question for you guys is from a policy standpoint, addressing all stream bank stabilization projects that meet that critical threshold acquisition, having the rights, encroachments and fee prior to beginning design the participation component. And then, of course, we mentioned this last time, one of the big factors that we're missing right now is we do not know the rate of erosion. So we do not know if a project is scoring an 89 today and 2 or 3 years, does it score an 88 or does it score a 48? We don't know that information until we get that data. It's really difficult to see what the cost benefit of improving those locations are. And then we'd reestablish that. So Caleb on on the reassess at the bottom because of because of what you just said. I mean, would that be a reason to. Shorten that time frame, to reassess because of just the unknown of the erosion speed, I guess? Yeah. So the typical timeframe costs come with that, right? So the typical time frame is that about that five year window. And so if you look back, we started this program in 2022. That's when we started going out and collecting data. So a lot of those locations in the first spring season or the season that we did in 2027 will come up. And so at that point is when we would start being back in front of you guys to say, we need to start our assessments again. Now, it would be 27 and probably 28 before we had that data. And then by 28, 29 is when we'd start being able to compare the previous one to the next one. Okay. Steve. Thank you. Mayor, I want to go back to the ten critical and the difference between an HOA related property and a residential property. The four residential properties, are they not in an HOA or how did you determine that they would be individual as opposed to collective? Yeah. So the four individual properties, the erosion concern is on their private property. The one HOA is on the HOA piece of property. So in some of the communities there's a shared property between the entire community that is deemed HOA. And everybody contributes and maintains and whatever component of it, that amenity that they have, the four locations that are on there, that is on private property or a private residence that is not on HOA property. It's the residential components property. And just to dig a little deeper here, the HOA in question, mandatory or voluntary? I don't know that answer. It's associated with the Gleneagles Golf Club. Mandatory. Okay. Thank you, thank you. Okay, Councilmember horn, thank you, Mr. Mayor. Caleb, great presentation again and thanks for. Providing the data. I want to look at slide five. And really and the reason why I want to look at slide five is really based on encroachment. And I've seen this. On my walks through the creeks and talking with neighbors. The if we were going back here and we were going to do mitigation on those, that's that that site right there, you got four sites there. I mean, from a cost effective perspective, you would design to go across all four pieces of property just because of the mobilization, get getting, getting it designed to meet that, my question, we talked about encroachment with fences and decks. What happens when you have a swimming pool in the backyard? That's going to be very difficult to tell a, you know, trying to get that that owner to participate. When you're saying that my design is going through your pool area, have we thought thought this through? Well, how we would go about doing that, I mean, because clearly we would take care of the South two sites and the, the north site, would we leave a gap there where that pool is? So I think what will happen is we do a case by case basis in depending on the pool, depending on the location, we may have wall anchors underneath the pool at a distance that's clear of the bottom of the pool. You know, it's five feet or whatever clear of it. And it may not be an issue, but we would have to get an easement agreement from the property owner to allow us to extend underneath their. Some property owners may say, yeah, absolutely. If you're going to save my pool in the maintenance of it, some people may not agree with that. So then we would have to look at the location and say, can we terminate our project and leave out the yellow house. It again, it's going to be a case by case and council. One of the things that we're concerned about is we're trying to avoid the checkerboard solutions. We're looking at that. But being new into this, looking at the easements and looking at this, you know, there's a lot for us to learn in this process. So we may be back quickly to council to have discussions, especially if, if there is resistance from neighbors participating. Because if you get three out of the four, you know, the project at some point doesn't make economic sense and doesn't have the impact that we're looking for. So we're hopeful that we will have some participation and support from the community doing that. But if we don't, then we may have to come back and talk about that easement and talk about what our strategy is for that. So just be aware that we do understand that there's some elements that we will be learning in this. And we recognize that we want to make sure that these projects are both economical and they actually solve the situation. Thank you mayor. Looking at this, when we were looking at this earlier this year, in many cases the HOA were tasked with responsibility for maintenance. It was in the paperwork for that. Now we're no longer, I guess in this scenario, not asking an HOA to be responsible for the 10,000. For example, we're asking the homeowner, is that what we're saying here? No. So if it was an HOA owned property, the HOA entity would be responsible for the $10,000, not the individual. Now, how they collect that is completely up to the HOA. I assume there would be some sort of assessment that would have to be levied in order to do that. I'm just thinking when a home belongs to an HOA and it was platted such that the HOA is supposed to be responsible for the maintenance, now we're saying the homeowner would be responsible for the 10,000. I'm I'm saying something a little bit differently. And communicating that or not, rather than HOA common land. I'm saying this is a homeowner who's part of an HOA who was supposed in the HOA is supposed to maintain that stream bank. Well, so in that instance, if the HOA portion of that property in these where we've identified these locations, it is on the resident's private property. It's not a part of the HOA where it's at. It's actually on their property. So would be if you were adding a pool to your property or whatever component of your property. So that's why we put it directly on that homeowner, because it's direct benefit to the back of their property. The stream bank maintenance today for that residence is not responsibility of HOA. No it's not, it's on the it's on the plat for the property owner. Thank you. That helps. I have another question. Unless you wanted to say something else related to this. So going you mentioned here that there's a critical stage in which we have to really take action and there's a maintenance stage. So you're actually considering moving some work along that would be more maintenance related as opposed to taking care of a criticality. Yeah. So we've I've had conversations with our public works department. They already do work out in the field. They have drainage staff assigned to them that they go out and do creek clearing and debris and miscellaneous repairs. What we have now is an ability to do a priority system for them instead of a complaint based system. So that's where we would evaluate over the next year. If we looked at these priorities, we still would address complaints. But what part of the priorities now can we start addressing and what can we do in-house? What does not require a design? What does not require an easement so that we can quickly go out and address it? Are these additional budget dollars that need to be spent, or are we set aside money for that kind of work? So we have budget in public works for drainage, maintenance and repair. What we don't know is how much can we do with that. And so I think that's where we'd take the next year and say, if we had another million dollars, we could have done another 20 locations. Or we may say, you know, that's the budget we had was perfect. We got, you know, 100 locations completed. Let's keep working towards that. But, you know, I think that's where we have some data. We can come back and say if we did this. Added staff, added equipment, added budget. Here's how much more, how much you know we could accomplish. Thank you for clarifying. Yep. Okay. Any other questions? Caleb. So council you've seen the proposed plan. What I'm seeing is enough head nods or I think around the dais to go ahead and move forward with the plan as as presented. Again, this will be kind of an ongoing evaluation that we have for this. So we will be checking in and letting you all know how this goes. But if you're comfortable with that, we'll build that into the budget and keep that moving along okay. Anybody okay. Thanks, Caleb. Thank you. All right. So we're on to program changes, right Karen. Yeah. Is that what that is? Victoria. So, Victoria get to get to have Victoria present all sorts of fun things. So let's start with comp plan adjustments okay. Thank you. Mayor Council. Good evening. Studies show that you know the true asset of any great organization is its people. It's not the building. It's not the policies. Those things are wonderful in setting the stage and setting the direction. But we can't forget that. It's the passion, the talent commitment of the employees that bring the vision to reality. And I just want us to think about the fact that how important it is to invest in our employees by nurturing their growth, by recognizing their contributions and empowering their potential. We're not just building a stronger workforce. We're shaping the very foundation of a very resilient, thriving, and enduring city. I'd like to start my presentation with showing you the accolades that the City of Plano has received and has enjoyed three accolades, particularly Stand Out and jump Out at Me. The first one is the number one in the best park system in Texas, and number 16 in the US by the trust for Public Land. Another one that's very noteworthy for me is the number three safest city in the US by wallet, wallet, hub. And the last one, though is really noteworthy as well. Is the best best midsize employer in the US within the government sector by Forbes. The reason why those three accolades stand out to me, particularly because they speak to the outstanding work of our employees. They speak to the culture that we embrace here and we take seriously. So we do. We work very hard to make sure that we stay competitive, that we study our employees wages, pays, benefit plans and so forth continuously to ensure that we stay competitive as compared to our peer markets. First of all, who are we? As shown in this slide, we are roughly comprised of 2300 full time employees. We have roughly 440 part time employees, 520 seasonal employees. If you take if you take a look at our full time and part time employees, our tenure is on average around nine years. But if you just look at the full time employees, the average tenure is ten years and there are 26 departments with 649 job positions. If you want to look at our employees by generations and gender, 41% of our population is made up of millennials, 37% is comprised is made up of generation X, generation Z makes up 13%, and the Baby boomers make up 9%. By gender, 68% of our employees are male and 32% are female. The next the next two slides, I want to get into the percentages of the hiring and attrition. Council has some questions about that before, so I'd like to visit that statistics. I pulled data going back three years. If you look at the data for the hiring rate in 2022, we hire roughly 14% to our employee population. In 2023, we hire roughly 15% in 2024. If you recall, we had a hiring freeze. So that number came down to 9.3%. And then for this year, as of July 1st, we're at 8.1%. Okay. In terms of attrition rate, this slide includes the retirement. The red refers to the involuntary and the green is the voluntary. But if you look at the percentages in 2022, we had the attrition rate on average of 15% and 23 and 24 around 11%. And this year, as of July 1st, we're at 7.5%. Another very interesting data that I'd like to share with you is on this slide. This is the total number of employees eligible for retirement at the executive level. Currently, 77% of your executive employees are eligible for retirement. If you go back or if you go up to four years from now, 2029, 87% will be eligible. Looking at your management staff, 47% right now are eligible in. In four years, 66% will be eligible. Those numbers are somewhat concerning to management because a lot of institutional knowledge would be walking out the door. And to be proactive and to protect, to be ahead of that. What we've done is in human resources, we've reinstated the what's called program, which is a management training program for Plano. That, along with some other leadership development programs. The goal of those programs is to equip future leaders so that we can address potential departures of high level employees. Okay. All right. So very briefly, I'd like to go over the compensation changes as well as the benefit changes that we have coming up. As you know, we did the compensation, the comprehensive market study last year. We completed it in the spring of this year. And you saw the new pay plans that I brought to you before you approved them. In June of this year, we implemented the new pay plans, and those have given us extra flexibility and allowed us to align pay with the employees expertise, experience in credentials. The philosophy. Can you let me go to the next slide for that? The city's compensation philosophy continues to be that we like to lead the market by median plus 5%, and generally, employees are expected to be at midpoint within six years of starting within their position and within the jobs there. We've designed positions to where there are job family, progressions and promotional opportunities as well. Okay. All right. With your approval of the budget the city manager has proposed certain adjustments and increases to take effect this fall. The first one is a 3% across the board increase to take effect September 29th. Another adjustment potential adjustment based on your subject to your approval is the on call and certification pay, which go into effect October 1st. But City Human Resources will work closely with departments to ensure that the implementation of the on call and certification will take place. So it may be early next year before we see those extra pays being reflected in the employees paychecks. Another change that we're going to make this fall is to compress the police department's police officers pay plans initially or currently. Actually we have pay plans going out to 11 years where officers are not able to max out at their pay until 20 years of service. What we're trying to do at this point is to reduce the number of steps to eight steps, and officers are able to max out their pay at five years. The reason for that is to enhance recruitment. Our police chief advised us that, you know, surrounding cities have pay plans going up on average seven, eight, nine, ten years, but ours went to 20 years, which deter our ability to recruit quality talent. Okay, next update I'd like to go over is a change to our medical plan. Currently, we have one plan that employees are get to pick from. But starting 2026, there will be two plans. We'll have the health care plan and Aetna plan. And the difference is that let me go back to a slide. That health care plan. If employees are going to providers they're more locally based. So hospitals doctors locally servicing out of the Plano area Oklahoma area. They're going to be covered in the health care plan. The Aetna network, however, is more of a national network. And so it will be a larger network and the premiums will be higher. This slide goes over the premium for the two plans employees, active employees who will opt for the healthcare plan will not see an increase to their premium, but employees opting the Aetna plan will see a slight increase. There will not be, other than a slight premium increase, any changes to the dental and vision plan and no changes to the pharmacy plan as well. The flexible spending account remains the same. Okay. All right. Do you have any questions before I wrap up? No. Any questions? Okay. Very good. Oh. Yes, sir. Yeah. Hello, Victoria. Thank you for hitting on the HR department. So this is kind of my jam. So I commend you because I know every hour it's different than what you had before. So your days never panned out. My main question or my main maybe heartburn is the attrition rate. There's really no trend because as you see year by year, it's going up and down, back and forth. But do you have like a succession planning? I know you mentioned training, but do you have people shadowing other individuals or attending meetings? Okay. Yeah. I don't want to lose that historical knowledge. Yes, exactly. Thank you for that question. We do have. That's the program. It's we've actually reimagined it to where it's going to be 18 months long, and employees will be able to shadow, will attend council meeting, leadership meetings and a whole lot of other classroom activities, as well as a project that they'll need to do. And with that, the goal is for them to develop the leadership skills. Perfect. Okay. So as long as that's on the radar. And then regarding the plan designs and the benefits that go with all of that. But do you have any do you think any of the employees will have heartburn about staying with the plan versus the other plan that's national, or do you think you'll be fine? I know the rates are staying the same, but the proximity of the services? Yes, right. That's a very good point. I think employees have to look at the two options very carefully. Go to the links for each of the networks, make sure their providers and hospital providers are in that network before they elect that. If they don't, if they fail to elect a plan though, by default, because we don't want them to be without insurance, they will be defaulted to the healthcare plan. But the Aetna network plan is more it's a national plan, as you know. And so we want to make sure that employees look at that carefully before they make that selection. So you don't feel that they'll have any heartburn having to choose between you know, they may, but HR is here and we've done a video. We've are trying to put together a lot of promotional marketing information to provide additional details, but we're here and open enrollment is not till the end of October. So there's plenty of time. Perfect. Yeah. Councilman, one of the things that we kind of focused on is giving the employees a choice, correct. That's what I was going to say, too. And so that that choice is, is a critical one. But it does require the education piece that that you're describing. And you never satisfy 100% of the employees anyways. So I think it's a great option. I commend you on keeping the rate with the local one and then the national one. So it's up to the employees choice. But either way, there's still great plans. Yeah. Thank you, thank you Victoria I just want to see a slide. You were talking about the category of the of the makeup of our employee, but it went through like in five seconds. I wasn't able to see. I went too fast. Okay, sorry. I just want to see that I don't have a question. Vidal asked all my questions. Okay. Where did I go? Is that I was like, the second or the third was actually before you got to compensation. There you go. There we go. Keep going back. Keep going. Okay. That's it. If you just hold it there and I'll be happy. Okay? You like to just look at that for a bit. Do you want me to conclude then? Okay. Very good. Well, I just want to reiterate that our employees are the cornerstone of our city, and we honor that by investing in their success, providing the resources, tools and budget that empower them to excel, innovate, and build a stronger future for all of us as a city here and city management, for the reasons that the accolades that we saw earlier, the city management is committed to continuing that culture of excellence. And by allotting the appropriate amount in the budget for employee recruitment, retention, development, the city is committed to that, to maintaining that standard. So I just want to end to say that we're also committed to continue to monitor and evaluate and study our compensation. The compensation and benefit plans to make sure that we stay competitive as compared to our market peers. With that, that concludes my presentation. Unless you have any questions. Thank you Victoria. Thank you. Appreciate it okay. Cost recovery update. Shelly. Thank you, thank you. All right. Honorable mayor, members of the city council. I'm Shelly Siemer, deputy city manager. And the reason why cost recovery is before you is really to refamiliarize yourself on the policy and also talk a little bit about our implementation. You will have some decision points coming to you in September and October time frame. So I'll quickly go through those. The policy really can be summarized in this graphic. And what it shows is the framework that is going to be used to recoup fees for, or our costs for programs and services. And the first area that is highlighted is the continuum of who benefits from these services. So on the first tier, that's truly just your basic core services that is provided by the city, because it is what we're here for to the other tier. And the core services benefit the community as a whole. On the other side of the spectrum is who benefits from certain programs and services may be an individual, an individual business, or a group of individuals that are participating in that service or program by choice, or because that is their area of business. The other continuum that all kind of fall within that scope is the level of cost recovery. So for basic and core services, the costs are based on zero cost recovery, but it's funded through the taxes. Right. And then on the other spectrum with an individual benefit, those are funded by 100% of fees supported. And what is the basis of the fees basically on that same continuum, how are the fees determined really? We don't have fees for that basic core service. We might have a slight fee, but we're really always looking at best practices. How do we operate? How do we make sure we're efficient? That's comparing to other cities that do we think do great in those areas on that other spectrum, how are the fees determined? It really is based on the full cost, direct and indirect, of the city providing those services. The market piece of that is we're always going to look to our neighbors and to cities that are similar in size as an information piece. When we come to you with the results of the study, it's going to be based on our actual costs. You then will direct staff where on that continuum between 0 to 100%. Do you feel most comfortable with placing these fees? We will be coming to you soon, and there's kind of two different implementation paths right now. While this is a first year, we're really implementing this overarching policy. So it starts with more of the formal fee reviews. That's where we have a consultant come in and do the deep dive into what our costs are, looking at both direct and indirect costs for providing the services. As Karen mentioned earlier, our enterprise funds will be on a three year rotation, and then our departments that have individual benefits and user fees associated are going to be on a four year rotation this year. Planning, engineering and building inspections were included in that fee review. And they are. We just got the final report this week. And so they're really working on how how is that going to fit within the continuum. And those recommendations will initially come to you at a preliminary open at the September 16th meeting. That will give you that chance to really review, look at it, hear what they are recommending, and then on October 13th, that would come to you for formal consideration to be effective November 1st. And the important piece of this is to know really on that continuum, the department's going to look at all the individual fees overall. They'll tell you from a department standpoint, overall, this is where we fall in that continuum and what we're recommending. But you ultimately tell us where you want those to be. It's very likely with some of them it will be a phased in approach. The next set is interim fee adjustments. So this is where we haven't yet done the deep dives. We've asked departments during this budget cycle to look at any fee that hasn't been updated in four years, to go ahead and look at those fees, recommend some adjustments based on CPI, but not exceeding 10% of an increase. That will give us some interim steps before the deep dive of their formal fee study will be incorporated, so the departments listed above will be coming forward on September 16th at the council meeting. Those likely will be, you know, a variety of fees that they currently use that have not been adjusted recently. Those would then be effective October 1st, in line with this fiscal year. And so it's important to note in this case, these wouldn't fall within the continuum. Yet that will come when we do the deep dive and come back to council with that recommendation of where those fall. So really just an awareness of this policy, especially for the newer council members, this was part of the fiscal roadmap initiative. And we're really excited to kind of have this overarching policy to guide these directions, especially as we're looking at revenue shrinking and expenses continuing to grow. So any questions or comments? Bob. Oh, sorry. Thank you. I have a question about the formal fee review plus the interim. The interim. The formal is more like at the enterprise fund level. This one is just some of the services we're providing. That's the distinction between these. The formal is going to be both enterprise funds will be done on a three year basis, kind of like what we've been doing with water and sewer rates. What we plan to do with the drainage fund, the department formal reviews are going to be for those fees or services that we charge. So right now, building inspections, planning and engineering do have fees associated with development. You know, wanting to have inspections or needing inspections, filing a plat plan, reviews, all of that, all part of that development process. That's part of a formal review. And that's what was conducted this year was a deep dive into those departments. So we will be looking at, I believe, parks and recreation fees next year, environmental health fees as well. And I think another department. But so we'll be picking departments on a every year. But it will be a rotation four year rotation. And Councilman, I think what I think of the interim is more of a CPI adjustment to make sure that we're keeping up with with fluctuations and changes in our costs. The when we actually do the deep dive, that's when we're going to actually use staff and consultants to actually do more cost of service. Really looking at that and doing a little bit more analysis of not just direct costs, but indirect cost, overhead costs, all those sorts of things, but doing more of a modeling, if you will, behind that. But once that's set, we don't think we need to do that every year. The interim years would be more of the cost of service and CPI type of adjustment. That makes total sense. And you just you've chosen a few items that you know that these need to be addressed sooner rather than later. And let's just let's get to this. And this is not going to be the final answer anyway. That's correct. So we're the interim adjustments right now are just are getting us moving in that direction, knowing that these are going to have to have to be adjusted. And then we'll true them up when we do that. Deeper dive. Fantastic. Thank you. Thanks, Kelly. Thank you. All right. Thank you. So next item is community investment program. This is an opportunity council for questions comments anything that you want to provide direction to Karen and myself. And we can actually take both of these at the same time. It's community investment and it's the proposed tax rate. We're happy to take any feedback. I will let you know. I had said this at the first the meeting on the property tax rate. We will have more discussion regarding that at the end of the meeting on August 25th. But do you have any questions? They did have a work session the other day regarding the CIP totals $319 million. Just making sure everybody's okay with it. Okay. All right. Oops. Okay. The council will now recess into executive session and closed session room right behind us to hold a closed executive meeting pursuant to the provisions of Vernon's Texas Codes Annotated Government Code, chapter 551, the Open Meetings Act in accordance with the authority contained in section 551 087 to discuss economic development matters. Thank you. Staff, if you want to go home, we aren't going to need you after this executive session. Just want to give you a head start. I now declare the Plano City Council Open meeting is reconvened in open session that all council members are present with no further business. We are adjourned. Was that well done, everyone? Thank you. Pipe bursting methods on existing lines that will reduce impa