>> Mayor Muns: I NOW DECLARE THAT THE PLANO CITY COUNCIL'S CONVENED IN OPEN SESSION, THAT ALL COUNCILMEMBERS ARE PRESENT. AT THIS TIME WE'LL ASK IF THERE'S ANYONE THAT WOULD LIKE TO ADDRESS THE COUNCIL REGARDING THE BUDGET AND CIP? >> Clerk: I DON'T HAVE ANY SPEAKERS THIS MORNING. >> Mayor Muns: OKAY. LET'S MOVE ON TO ITEM THREE, MARK WOULD YOU LIKE TO PRESENT THE OVERVIEW? >> Isrealson: YES, GOOD MORNING, MAYOR AND COUNCIL. AS YOU ARE AWARE, WE PRESENTED THE BUDGET ON JULY 27TH, INCLUDING THE CAPITAL IMPROVEMENT PROGRAM, BUT I DO HAVE ONE UPDATE TO ADD, SO MY GOAL IN PRESENTING THE BUDGET TO COUNCIL IS ALWAYS TO BE TRANSPARENT, SO THAT WE CAN HAVE MEANINGFUL DISCUSSIONS AROUND STRATEGIC DECISIONS THAT AFFECT THE ORGANIZATION AND THE COMMUNITY. THE BUDGET IS OUR MOST STRATEC PLANNING DOCUMENT, BECAUSE IT FUNDS CITY'S PRIORITIES. I PRESENTED THE BUDGET TWO AND A HALF WEEKS AGO ON JULY 27TH, WHICH INCLUDED OUR REESTIMATED REVENUES AND EXPENDITURES FOR THE REST OF THE FISCAL YEAR IN ORDER TO BEGIN OUR BUDGET DISCUSSIONS. AS COUNCIL IS AWARE, THE BUBBLINGETTE IS A WORK IN PROGRESS UP UNTIL ADOPTION. AFTER THE LAST MEETING THIS PAST MONDAY WHERE THE CITY COUNCIL DISCUSSED THE TAX RATE, THE CITY WAS INFORMED OF OUR UPDATED SALES TAX NUMBERS WHICH CAME IN CLOSE TO 1.5 MILLION AHEAD OF WHAT WAS PROJECTED. WITHHAT NEW AND THE FEEDBACK FROM COUNCIL ON MONDAY, KAREN'S STAFF AND I WENT BACK AND REANALYZED EXPENDITURES SINCE WE HAD AN ADDITIONAL MONTH OF ACTUAL EXPENDITURES SINCE THE BUDGET -- THE RECOMMENDED BUDGET WAS PUT TOGETHER. AT THIS POINT, I'M PLEASED TO REPORT THE RESULTS PROVIDE THE CITY WITH ENOUGH ADDITIONAL REVENUE AND COST SAVINGS TO REACH THE NO NEW REVENUE RATE WITHOUT CUTTING PROJECTS FROM THE '22-'23 BUDGET, SO THAT IS THE UPDATE I HAVE FOR COUNCIL. WITH THAT, I'LL BE HAPPY TO >> Mayor Muns: THANK YOU. GREAT NEWS. WE WILL ADDRESS EACH ITEM IN ITEM FOUR -- ITS ACTUALLY SAYING SIX, BUT WE'LL GET ROMAN NUMERALS RIGHT ONE OF THESE DAYS. OUR FIRST ITEM IS -- WE HAD SOME REQUESTS FROM HIGH POINT TENNIS CENTER REGARDING MISTING FANS, AND, RON, GOOD RNING. >> GOOD MORNING, COUNCIL. YES, I WAS ASKED TO INVESTIGATE A REQUEST TO INSTALL MISTING FANS AT THE HIGH POINT TENNIS CENTER. I'VE PROVIDED A MEMO FOR YOUR CONVENIENCE IN YOUR PACKET THIS MORNING.& A FEW POINTS THAT I WANTED TO MAKE BEFORE ANSWERING ANY QUESTIONS THAT YOU MIGHT HAVE, THE HIGH POINT TENNIS CENTER WAS RENOVATED AND REOPENED IN 2020, JUST ABOUT 19 MONTHS AGO. DURING THE PUBLIC INPUT PRIOR TO THE REDESIGN, WE DID RECEE NO COMMENT FROM THE PUBLIC REGARDING MISTING FANS INSTALLED AT THE LOCATION, SO, THEREFORE, THERE WAS NO INFRASTRUCTURE INCLUDED IN THAT REDESIGN THAT WOULD ALLOW US TO SIMPLY PLUG AND PLAY, IF YOU WILL, MISTING FANS AT THE CHANGEOVER STATIONS. THE COST THAT RESIDENT PRESENTED, WE ACTUALLY REENGAGED THE CONSULTANT THAT DESIGNED THE RENOVATION OF HIGH POINT CENTER AND GOT AN ESTIMATE FROM THAT ORGANIZATION AND THE COST IS EXCESSIVE, THE AMOUNT IS IN THE BUDGET -- OR EXCUSE ME, IN THE MEMO THEY'VE PROVIDED. THE -- SO THAT'S ONE OF THE ISSUES, THAT WE DON'T HAVE THE INFRASTRUCTURE. WE WOULD HAVE TO DO A MAJOR RENOVATION REWORK OF THE COURTS IF WE WERE TO INSTALL THESE MISTING FANS AT THE PROPOSED LOCATIONS. ALSO, THEIR PROXIMITY TO THE BENCH AREA AND THE COURT, WE FEEL COULD CAUSE A SAFETY ISSUE WITH EXCESSIVE MOISTURE ACCUMULATION. I DO HAVE SOME ALTERNATES THAT WE COULD TALK ABOUT IF EXCESSIVE HEAT IS REALLY THE ISSUE THAT WE'RE CONCERNED WITH TENNIS PLAYERS THAT MIGHT GET OVERHEATED DURING CERTAIN TIMES OF THE YEAR THAT WE COULD TALK ABOUT, BUT I'M HAPPY TO ANSWER ANY QUESTIONS YOU MIGHT HAVE. >> MAYOR AND COUNCIL, THIS IS ONE OF SEVERAL ITEMS THAT WERE ACTUALLY BROUGHT FORWARD BY COUNCILMEMBERS, I THINK, IN RESPONSE TO ISSUES THAT HAVE COME UP OVER THE YEAR OR CITIZEN ISSUES, SO THIS IS REALLY A TIME FOR US TO DISCUSS THESE. NONE OF THESE ITEMS THAT WE'RE TALKING ABOUT ARE FUNDED AT THIS POINT, SO THIS WOU B IN ADDITION TO WHAT WE NEED AND WHAT WE'VE REQUESTED AND WHAT WE HAVE IN THE CAPITAL MAINTENANCE BUDGET, BUT I THINK MAYOR PRO TEM PROBABLY HAS SOME COMMENTS. >> Prince: I MEAN, I'D LIKE TO HEAR WHAT YOUR OTHER OPTIONS ARE IF YOU DON'T THINK THAT THE SUGGESTION MADE BY THE CITIZEN IS A VIABLE OPTION. >> Smith: YEAH, THE -- ON YOUR SCREEN IS PROPOSED -- NOT REAL EASY TO SEE THERE, BUT TWO ALTERNATES THAT WE THINK WE COULD EASILY DO IF WE'RE CONCERNED ABOUT THE HEALTH AND WELL-BEING OF TENNIS PLAYERS DURING THESE EXCESSIVE HOT SUMMERS, IF YOU WILL. WE COULD PURCHASE SOME PORTABLE MISTING MACHINES, WE DO HAVE LOCATIONS WHERE WE'VE GOT POWER AND WATER, WHICH ANY OF THESE MACHINES WOULD REQUIRE IN ORDER TO OPERATE. WE DO HAVE LOCATIONS ON SITE WHERE WE WOULD WITH SOME MINOR PLUMBING WORK AND SOME MINOR SAW CUTTING MAKE THOSE CONNECTIONS FOR WATER AND POWER WHERE WE COULD ROLL OUT MISTING MACHINES DURING THE TIMES OF YOUR WHEN THEY'RE NECESSARY, PLUG THEM IN, HOOK THEM UP TO THE WATER, AND THAT WAY PATRONS COULD COOL OFF IF THEY NEED T KD OF CREATING SOME PORTABLE COOLING STATIONS. ANOTHER ALTERNATE WOULD BE LOOKING AT THE THREE MAIN GATHERING AREAS AT THE FACILITY WHERE WE COULD INSTALL SOME MISTING FANS THERE AT THOSE THREE LOCATIONS. IT WOULDN'T BE ON THE COURT AREA, WE DON'T WANT TO HAVE ANY TRIP HAZARDS WITH CABLES AND HOSES RUNNING TO FACILITATE THESE MISTING MACHINES THAT WERE PROPOSED, BUT IF COOLING DOWN IS REALLY WHAT NEEDS TO HAPPEN THERE, WE COULD DO THOSE TWO ALTERNATES. AND IT ALSO COULD BE AS SIMPLE AS PURCHASING A LARGE QUANTITY OF HANDHELD BATTERY OPERATED MISTING BOTTLES, BRAND THEM WITH HIGH POINT TENNIS CENTER AND HAVE THEM FOR SALE AT A NOMINAL PRICE THERE AT THE PRO SHOP. >> MAYOR, SO I THINK THIS HAS BEEN AN ISSUE EVER SINCE I'VE BEEN IN COUNCIL. I THINK THAT WAS ONE OF THE THINGS THAT WAS BROUGHT UP TO ME BY MANY OF OUR RESIDTS ASKING FOR SOME SORT OF RELIEF IN THE TENNIS COURT. SO I THINK THEY WERE LOOKING FOR SOMETHING MORE PERMANENT, LIKE MAYBE SOME SORT OF COVER AREA WHERE, YOU KNOW, IT COULD BE OUT OF THE SUN. I THINK MISTING IS FINE, BUT I ALSO THINK THERE IS GOING TO BE AN ISSUE WITH WATER, YOU KNOW, MAYBE DAMAGING SOME PARTS OF OUR PROPERTY. IS THERE ANY OTHER POTENTIAL OPTIONS THAT WE COULD STA MOVING TOWARDS? I MEAN, IT DOESN'T HAVE TO BE OVERNIGHT, IT DOESN'T HAVE TO BE NEXT YEAR, BUT, YOU KNOW, GRADUALLY WE SHOULD MOVE TOWARDS HAVING SOME TYPE OF RELIEF FOR OUR TENNIS PLAYERS. YOU KNOW, AND FOR OUR OUTSIDE SPORTS RESIDENTS, SO I MEAN, IS THAT SOMETHING THAT'S PLANNABLE? I MEAN, I THINK THOSE -- YOU KNOW, TEMPORARY FIXES ARE GREAT, BUT, YOU KNOW, I THINK THEY JUST SPEND MONEY BUT THEY DON'T ULTIMATELY RESOLVE THE PERMANENT ISSUE. >> MAYOR AND COUNCIL, IF WE'RE TALKING ABOUT ENCLOSING TENNIS COURTS, NUMBER ONE, IF YOU LOOK AT THE NUMBER OF COURTS WE HAVE OUT THERE, IT'S NOT A SMALL FEAT. THIS WOULD BE A MAJOR BOND PROJECT, AND SO IF WE'RE TALKING ABOUT EVEN SHADE COVERS OVER THOSE STILL WOULD BE A PRETTY SIGNIFICANT COST BECAUSE THE DESIGN OF THOSE IS GOING TO -- WITH AN OUTDOOR SPORT, AND Y'ALL ARE WELL AWARE OF THIS, YOU HAVE TO HAVE ENOUGH APPROPRIATE CLEARANCE TO BE ABLE TO PLAY THE SPORT AS WELL. SO FOR US TO BE ABLE TO GO OUT AND DO THAT, THE STRUCTURES WULDEED TO BE CONSTRUCTED IN A WAY THAT WITH WHATEVER WEATHER IS OUT THERE, WE'RE ABLE TO CONSTRUCT SOMETHING THAT CAN WITHSTAND THE WEATHER AND IT WOULD LIKELY REQUIRE SOME SORT OF SUPPORT STRUCTURES TO BE ABLE TO SPAN THE LENGTH OF THE COURTS. BUT FOR US, I THINK THAT THAT WOULD BE MORE APPROPRIATE FOR OUR NEXT BOND ER RENOVATION DUMB, TO HAVE THAT DISCUSSION WITH THE PARKS AND RECREATION ADVISORY BOARD, AND I WOULD& SUGGEST THAT IF WE DO THAT, WE -- WE GIVE THEM SOME INSTRUCTION THAT NOT EVERY COURT NEEDS THAT, AND MAYBE IT'S A LIMITED NUMBER OF COURTS THATEEDHAT, B TH WLD BE MORE APPROPRIATE FOR A BOND REFERENDUM. >> Tu: SO I'M NOT TALKING ABOUT COVERING THE TENNIS COURT. I BELIEVE THE RESIDENTS WERE TALKING ABOUT SOME AREA IN WHICH THEY CAN GET OUTSIDE OF THE SUN. >> Isrealson: AND SO, RON, WE HAVE THE -- WHEN WE ARE OUT LIKE AT CARPENTER PARK, WE HAVE THE -- FOR THE SPECTATORS FOR THE SOCCER FIELDS, WE HAVE A CERTAIN LEVEL OF SHADE STRUCTURE THERE ALREADY, KIND OF A CANOPY TO GIVE THEM SHADE. WHEN WE HAVE THE CHANGEOVER AREAS AND WE HAVE SOME OF THOSE EAS THE COURTS, DO WE HAVE ANY SHADE BUILT INTO THOSE AREAS FOR THAT? >> Smith: THOSE CHANGEOVER BENCHES ARE COVERED AND THE LARGE GATHERING AREAS THAT WE'RE TALKING ABOUT ARE ALSO SHADE COVERED. SO THAT'S WHY WE'RE LOOKING AT THOSE LOCATIONS SPECIFICALLY IF, IN FACT, THERE IS A NEED FOR A PLACE TO GO, IF YOU'VE HAD -- IF YOU'RE IN BETWEEN GAMES OR YOU'VE JUST COMPLETED A MATCH AND YOU NEED A PLACE TO REALLY COOL DOWN, YOU CAN GO INTO THE PRO SHOP THAT IS AIR CONDITIONING OR WE CAN GO THE ROUTE WHERE WE HAVE A PORTABLE MISTING LOCATION, TWO OR THREE OF THOSEN SITE, OR THE PERMANENT INSTALLATION AT PEOPL THAT WE'VE TALKED TO THAT DO UTILIZE THE TENNIS CENTER, NOT ALL OF THEM ARE HIP TO THE IDEA OF HAVING MISTING FANS, ESPECIALLY NEAR WHERE THEY'RE KEEPING THEIR EQUIPMENT AT THE CHANGEOVER BENCH AND ALL THAT KIND OF STUFF, THAT THEY'RE NOT REALLY LOOKING FORWARD TO THAT. BUT WE CERTAINLY CAN LOOK AT THESE ALTERNATES OR THESE OPTIONS TO SEE WHAT WE CAN DO IF WE NEED TO PROVIDE SOME SORT OF COOLING ZONE OR STATION FOR PEOPLE TO GO IF THEY FEEL THEY MAYBE HAVE OVERDONE IT A LITTLE BIT. >> Mayor Muns: EXAM WILLIAMS? >> Williams: I'VE NEVER VISITED THE TENNIS COURTS, BUT I'M LOOKNG AT THE SATELLITE VIEW, AND THE CHANGEOVER STATIONS IF THAT'S WHAT I'M LOOKING AT, THEY HAVE COMPARATIVELY SMALL SHADED AREAS, HOWEVER WITH THE WAY ALL OF THE COURTS ARE SITUATED, THE SUN GOES STRAIGHT AND ARC OVER IT. SO I'M GUESSING THE SHADE AREAS PROVIDES ABOUT TWO HOURS OF SHADE A DAY. >> Smith: ABOUT HIGH NOON. THAT'S THE SAME ABOUT ANY OF OUR PARKS, WHETHER IT'S A PLER'SENCH AREA OR A SPECTATOR AREA, IN ORDER TO PROVIDE SHADE THROUGHOUT THE DAY, YOU REALLY NEED TO HAVE IT ENCLOSED. AND SO THESE AWNINGS OR THE SHADE COVERS THAT WE HAVE PROVIDE SOME RELIEF DURING THE HEAT OF THE DAY, BUT, YOU KNOW, WHEN YOU GET PAST 10:00 OR 4:00 IN THE AFTERNOON, THE LITTLE SHADE COVERS ARE NOT GOING TO PROVIDE SOME DIRECT RELIEF. >> DR. SMITH, DO YOU KNOW WITHHH IN PLACE, IF THEY WOULD ACCOMMODATE A LARGER SHADE. >> Smith: WE'D HAVE TO LOOK AT THAT, PROBABLY REENGAGE THE CONSULTANT TO MAKE SURE. I DO RECALL WHEN IT CAME TO INSTALLING THOSE SHADE COVERS, THERE WAS GREAT CONCERN ABOUT SAW CUTTING THOSE COURTS AND COMPROMISING THE POSTTENSION CABLE UNDERNEATH OR THAT'S EMBEDDED IN THE CONCRETE, SO THE CONSULTANT ACTUALLY DIRECTED US TO DO A SURFACE MOUNT, SO THEY'RE NOT -- THEY'RE NOT EMBEDDED IN THE CONCRETE. WE HAD TO DO SOME X-RAYING AND BORE THE PIL HES TOAKE SUREHAT WE ANYTHING UNDERNEATH THE SURFACE OF THE COURT. SSO AS FAR AS STRUCTURAL INTEGRITY ADDING ADDITIONAL SIZE, WE'D HAVE TO TAKE A LOOK AT THAT BEFORE WE DID ANYTHING OF THAT. >> Williams: THAT'S TOTALLY FAIR. I'D LIKE TO LOOK AT OPTIONS, BUT, OF COURSE, THIS SORT OF THING IS BETTER TO PLAN BEFORE IT'S BUILT. >> Isrealson: I THINK THE SHADE AREA, ANYTHING LARGER IS GOING TO COME INTO PLAY IN THE TENNIS COURT. SO THEY CAN'T BE REALLY ANY BIGGER THAN THEY ALREADY ARE BECAUSE TY WILL B A PROBLEM WITH, YOU KNOW AREA OF PLAY. >> Smith: YEAH, THEY WERE DESIGNED APPROPRIATE TO WHERE THEY ARE LOCATED WHEN WE RENOVATED THE FACILITY. >> Mayor Muns: COUNCILMAN RICK RICCIARDELLI? . >> Ricciardelli: THANK YOU. I WAS SAYING PROVIDING SOME SORT OF HEAT RELIEF IS A GOAL. AS FAR AS HOW TO DO IT, DIFFERENT TENNIS PLAYERS MAY HAVE DIFFERENT PREFERENCES. AND WE'VE DISCUSSED A FEW OPTIONS TODAY. I THINK IF WE PUT SOME SORT OF LINE SURVEY OUT THERE, I'M THINKING JUST AN EASY SURVEY MONKEY, LET PEOPLE PROVIDE FEEDBACK SO THAT WE'RE HEARING FROM PEOPLE. IT WAS MENTIONED THAT DURING THE DESIGN PROCESS, THERE WAS NO FEEDBACK ON THIS, WE TRIED TO GET THE WORD OUT AMONG THE TENNIS PLAYERS AT HIGH POINT, YOU KNOW, WE CAN FIND OUT MAYBE WHAT THEY BELIEVE THE BEST SOLUTION TO MEET THEIR NEEDS IS. >> AND MAYOR AND COUNCIL, WE'RE HAPPY TO CONTINUE TO STUDY THIS AND LOOK AT THIS. WE ALSO HAVE A LITTLE BIT THAT WE'RE DOING ON THE SURVEYING WITH REGARD TO PICKLEBALL, AS Y'ALL ARE WELL AWARE, SO WE'RE HAPPY TO ADD THIS TO THAT SURVEY TO REALLY UNDERSTAND THIS A LITTLE BIT FURTHER AND MAYBE WE CAN BRING SOMETHING BACK AFTER A FEW MONTHS OR MAYBE MIDYEAR TO SEE WHERE THINGS ARE. HOPEFULLY -- HOPEFULLY WE'RE ON THE BACK SIDE OF SUMMER AND THAT IT DOESN'T KEEP PROLONGING, BUT I WANT TO MAKE SURE THAT IF THERE'S A LARGER PROJECT THAT WE NEED TO ALLOCATE FUNDS TO, THAT WE'RE DOING THAT, BUT IF COUNCIL'S DIRECTION IS CONTINUE TO LOOK AT THIS, CONTINUE TO BRING BACK OPTIONS UNTIL WE FIND SOMETHING, THAT'S HELPFUL AS WELL. >> WELL, IF YOU'RE GOING TO SURVEY PEOPLE AND YOU'RE GOING TO DO A STUDY, THEN I THINK IT WOULD BE GOOD TO FIND OUT FM OUR CITIZENS IF YOU DID LONG-TERM WANT TO ENCLOSE A FEW OF THEM, HOW MUCH THEY WOULD BE USED AND HOW MUCH PEOPLE WOULD BE WILLING TO PAY TO USE ONE OF THOSE, BECAUSE I HAVE HEARD FROM CITIZENS THAT WE DON'T OFFER THAT ANYWHERE IN OUR CITY OTHER THAN, I THINK, THE LIFETIME ONE. >> Isrealson: RIGHT. >> Prince: AND I THINK THAT IT WOULD BE USED, BUT, I MEAN, I WOULDN'T WANT US TO ENDEAVOR DOWN THAT IF THAT'S NOT A CITIZEN NEED OR DESIRE. >> AND COUNCILMAN, THAT'S A SIMPLE SURVEY QUESTION F US TO FIND OUT. I TNK WE CAN DO ENOUGH RESEARCH TO FIND OUT WHAT THE COST WOULD BE AND WHAT WE WOULD NEED TO CHARGE FOR COURT TIME TO TO SEE WHAT PEOPLEEEEEEE THAT WOULD BE AN ENHANCED FEE FOR THE COMMUNITY TO USE THAT SORT OF FACILITY, BUT WE'RE HAPPY TO ADD THAT TO THAT AND WE CAN BRING THAT BACK FOR DISCUSSION. >> ONE THING COMING TO MY MIND, WHAT ARE THE UTILIZATION FIGURES OR I GUESS LACK OF UTILIZATION ON DAYS WHEN WE'RE IN TRIPLE DIGITS. HAVE WE ANALYZED THAT? ARE THE COURTS SLL -- BEUSE I KNO SINCE THE RENOVATION WAS COMPLETED, THAT, YOU KNOW, UTILIZATION HAS INCREASED, BUT WHAT ABOUT ON THE REALLY -- THESE DAYS WE'RE TALKING ABOUT? >> TO MAKE SURE I UNDERSTAND WHAT YOU'RE SAYING IS THERE A USAGE PATTERN THAT DEMONSTRATES A DROP IN UTILIZATION WHEN WE'RE 100 DEGREES HOT, SOMETHING LIKE THAT, MIDDLE OF JULY OR AUGUST. WE'LL LOOK INTO THAT AND SEE. I DO KNOW THAT OUR TENNIS NUMBERS HAVE BEEN VERY, VERY STRONG. SO I CAN LOOK AND SEE AT THOSE USAGE PATTERNS AND SEE IF WE SEE A DROP. IOULD IMAGINE - AND I DON'T HAVE TO IMAGINE BECAUSE I KNOW -- WE HAVE DATA COLLECTION ON OUR TRAIL SYSTEM THAT TRAILS ARE MOST HEAVILY USED WHEN THE WEATHER IS NICER AND THE USAGE PATTERNS, WHEN IT'S VERY, VERY HOT, NO ONE IS USING THE TRAILS. SO I WOULD IMAGINE THAT WE'RE GOING TO SEE THE SAME TREND THAT WHEN THE WEATHER IS MORE CONDUCIVE TO PLAY, WE HAVE MORE PEOPLE PLAYING. >> GREAT. THAT'S WHAT I THINK ABOUT PERSONALLY WHEN, YOU KNOW, IT'S THAT HOT, I'M NOT GOING OUTSIDE DOING ALL THE CHORES THAT MY WIFE HAS TASKED ME TO DO BECAUSE IT'S WAY TOO HOT OUT . [LAUGHTER] [SIMULTANEOUS SPEAKING]. >> EVEN UNDER THREAT, I STILL STAY INSIDE WHERE IT'S COOL AND WAIT FOR IT TO COOL DOWN. ANYWAY, THANK YOU. IF YOU CAN FIND THAT, THAT WOULD BE GREAT. >> Smith: I'M SURE YOUR HOME IS IN GOOD SHAPE. >> Mayor Muns: ALL RIGHT. I THINK WE HAVE SOME THINGS THAT WE CAN GATHER SOME MORE DATA TO HELP US MAKE SOME OF THESE DECISIONS, BUT IN THE MEANTIME, IF WE COULD FIND OUT WHAT SOME OF THE REAL ISSUES WITH A LITTLE BIT MORE BROADLY THROUGH THE PLAYERS THAT USE HIGH POINT ON A REGUL BASIS, I THINK THAT WOULD HELP US. >> Smith: HAPPY TO DO THAT. THANK YOU. >> Mayor Muns: ALL RIGHT. THANK YOU. >> MAYOR, THE NEXT ITEM IS THE PRICE ESCALATOR POLICY. THIS ACTUALLY CAME UP A FEW MONTHS AGO WITH REGARD TO A SPECIFIC CONTRACT WE HAD THAT WE'VE ACTUALLY TABLED. SO WE STILL HAVE THIS AT A TABLED STATUS RIGHT NOW FOR CITY COUNCIL. IN ONE OF THE -- ONE OF THE ELEMENTS OF THAT -- THAT CONTRACT WAS AN ANNUAL ESCALATION POLICY, AND IT WAS LESS THAN CPI. AND SO I THINK THE QUESTION FROM COUNCIL WAS -- AND THIS IS ACTUALLY ONE FOR COUNCILMAN RICCIARDELLI, DOES THE CITY OR SHOULD THE CITY HAVE A PRICE ESCALATOR POLICY, AND WHAT MIGHT THAT IMPACT BE? AND SO I'LL ASK COUNCILMAN RICCIARDELLI IF HE'D LIKE TO ADD TO THAT? >> Ricciardelli: THANK YOU, MARK. THIS IS SOMETHING I ASKED TO BE PUT ON THE AGENDA. THE FIRST OF TWO ITEMS, THE OTHER IS GREAT UPDATE REBATE ELIGIBILITY CRITERIA, AS YOU GUYS REMEMR, WE WERE LOOKING AT A CONTRACT WITH AT&T THAT HAD A PRICE ESCALATOR THAT WAS ONLY 3% EVERY 10 YEARS, SO NOT 3% A YEAR, BUT A 3% INCREAE ONCE A DECADE, WHICH, OF COURSE, IS LESS THAN INFLATION IN ANY ENVIRONMENT. OVER 30 YEARS, THAT'S GOING TO BE A LOT LESS THAN INFLATION, AND SO IT UNINTENTIONALLY TERNS A LONG-TERM CONTRACT INTO A SWEETHEART DEAL OVERTIME WHERE IT'S JUST INCREDIBLY FAVORABLE TO THE PARTY THAT'S CONTRACTING WITH THE CITY, JUST BECAUSE THE VALUE OF WHAT THEY'RE PAYING DOESN'T INCREASE COMMENSURATELY WITH INFLATION OVER TIME. IF -- AND ALSO I WOULD POINT OUT THAT IF WE TAKE THE VALUE FOR THE NEXT 30 YEARS, YOU KNOW, WHEN THAT CONTRACT COMES UP FOR RENEWAL, SAY, IN 2052 OFF OF THE ENDING POINT OF THIS 30 YEARS, THAT COULD COMPOUND IT EVEN FURTHER, SO I THINK IT'S VERY IMPORTANT THAT PRICE CONTRACTS CONTAIN PRICE ESCALATORS THAT ANNUALLY INCREASE THE PRICE PAID TO THE CITY BY THE GREATER OF CPI OR THE MUNICIPAL COST INDEX. AND THE PURPOSE OF THIS WOULD BE TO LOOK OUT FOR PLANO TAX PLAYERS BY MAKING SURE THAT PLANO FEE PAYERS PAY THEIR FAIR SHARE INSTEAD OF MUCH LESS THAN THAT, BECAUSE EVERY DOLLAR NOT COLLECTED IN FEES HAS TO BE MADE UP BY HIGHER TAXES. SO MY CONCERN IS MORE OF THE BURDEN WOULD BE PASSED THROUGH TO RESIDENTS. I DO WANT TO D ADDRESS BECAUSE THE STAFF BROUGHT UP A GREAT POINT THE FEES MAY BE PASSED THROUGH TO RESIDENTS. IF A BUSINESS LIKE AT&T HAS TO PAY FEES, THEY DON'T SAY WE'LL MAKE A LITTLE LESS PROFIT, THEY'RE GOING TO TRY TO MAKE UP FOR THAT SOMEHOW. BUT A LOT OF THESE BUSINESSES ADVERTISE RATES AND MAY NOT HAVE A SPECIAL PLANO RATE JUST FOR THE CITY OF PLANO, AND EVEN IF IT WAS PASSED THROUGH IN THAT VERY GEOGRAPHICALLY LIMITED MATTER WITH A SPECIAL PLANO RATE, THE ALTERNATIVE IS WE HAVE TO HAVE HIGHER TAXES US BA WE HAVE TO PAY FOR CITY OPERATION SOMEHOW SO EVERY DOLLAR NOT COLLECTED IF FEES LEADS TO A DOLLAR THAT HAS TO BE COLLECTED IN TAXES. IF THEY THEY DON'T HAVE A SPECIAL PLANO RATE, IT'S A BENEFIT TO PLANO RESIDENTS WITHOUT AN ASSOCIATED COST, AND FINDLY THE CONCERN ABOUT FEES BEING PASSED THROUGH IS ESSENTIALLY AN ARGUMENT THAT PROVES TOO MUCH BECAUSE IT WOULD BE AN ARGUMENT AGAINST CHARGING THE FEES AT ALL OR AN ARGUMENT AGAINST HAVING PRICE ESCALATORS AT ALL. THAT'S A CONVERSATION WE COULD HAVE, BUT I THINK IF WE'RE GOING TO HAVE PRICE ESCALATORS, LET'S TRY TO ACCURATELY PEG IT TO INFLATION SO I WOULD SUGGEST WE TAKE ON THAT POLICY. >> Isrealson: COUNCILMAN RICCIARDELLI AND I HAVE HAD A COUPLE CONVERSATIONS ABOUT THIS WITH THE COSTS THAT ARE PASSED ON TO OUR CITIZENS, BECAUSE WE RECOGNIZE THAT THE CHECKING ACCOUNT THAT PAYS THE TAX BILLS PAYS THE UTILITY BILLS AND PAYS THE GROCERY BILLS AND PAYS EVERYTHING. SO WE'RE KIND OF SENSITIVE TO WHERE THIS COMES BACK TO THE AVERAGE RESIDENT WITHIN THE CITY. AND WHAT WE'RE CONCERNED ABOUT AT SOME LEVEL IS THAT THE M MUNICIPAL FEES THAT WE HEAR ABOUT AND ANDREW'S TEAM HEARS ABOUT A LOT INCREASE IN PLANO AS COMPARED TO SOME OF OUR OTHEREIGHRING CITIES T OTHER THING THAT WE'RE CONCERNED ABOUT IF IT DOESN'T GET PASSED ALONG, IF THE CORPORATIONS AND THE BUSINESSES SAY THE COST OF DOING BUSINESS IS HIGHER IN PLANO, WE'RE GOING TO EITHER INVEST LESSOR DO LESS BUSINESS. SO FOR THE CASE OF SOMETHING LIKE AT&T JUST AS AN EXAMPLE WHICH WAS THE BASIS FOR THIS, WE'RE A SMART CITY. AND WE HAVE A LOT OF TECHNOLOGY NEEDS IN THIS COMMUNITY. AND WE DON'T WANT -- WE'RE ALWAYS SENSITIVE TO HOW OUR POLICIES AND OUR APPROACH MIGHT IMPACT THE WILLINGNESS OF THE COMPANY TO INVEST IN THE COMMUNITY AND TO PROVIDE BUST SERVICES IN THE COMMUNITY. SO WHEN WE'RE APPROACHING CONTRACTS, WE'RE TRYING TO BALANCE ALL THOSE ELEMENTS OUT AND MAKE SURE THAT WE ARE GENERATING APPROPRIATE REVENUE BACK TO THE CITY. AND SO THOSE BECOME KIND OF A CASE-BY-CASE NEGOTIATION IN MANY TIMES. BUT IF THERE IS A NEED FOR STANDARDIZED POLICY, I THINK THAT THERE'S ROOM TO TALK ABOUT WHETHER IT'S CPI OR HALF CPI OR, YOU KNOW, WHATEVER THOSE THINGS MIGHT BE, BUT I THINK THAT WHEN YOU'RE IN NEGOTIATIONS, I JUST WANT TO MAKE SURE WE'RE BEING VER TRANSPARENT. THERE'S TWO PARTIES TO THIS. AND IF THE OTHER PARTY DOESN'T AGREE TO THOSE AUTOMATIC ESCALATORS, WE MAY END UP WITH OTHER IMPACTS TO OUR CITIZENS, I WANT TO PUT THAT ON THE TABLE BECAUSE IF WE GO DOWN THAT PATH, AND THAT IS THE REACTION FROM SOME BUSINESSES, I JUST DON'T WANT IT TO BE A SURPRISE. >> Mayor Muns: THANK YOU. COUNCILMAN GRADY? >> Grady: I JUST WANTED TO SAY THAT I'M NOT OPPOSED TO THIS TYPE OF THOUGHT. IN THE CORPORATE WORLD, OF COURSE, THIS WOULD BE PART OF THE NEGOTIATION THAT WE WOULD HAVE IS THE DISCUSSION OF WHAT THE CT WOULD BE OVER A PERIOD OF TIME AND WHAT THE BENEFIT WOULD BE OVER THE PERIOD OF TIME. I THINK, HOWEVER, WE HAVE SOME VERY GOOD DATABASES THAT WE CAN CONSULT, AND THAT WOULD BE THROUGH THE NATIONAL LEAGUE OF CITIES AND THROUGH THE TEXAS MUNICIPAL LEAGUE TO FIND OUT WHAT OTHER CITIES ACROSS THIS STATE AND WHAT OTHER CITIES ACROSS THIS NATION AND HOW THEY ARE HANDLING THIS ISSUE TO FIND OUT WHAT KIND OF POLICIES DO THEY HAVE IN PLACE. AND BY TAKING A LOOK AT THOSE TYPES OF POLICIES, WE CAN DETERMINE WHETHER OR NOT GOVERNMENTAL BODIES TYPICALLY DO THIS, AND HOW THEY DO THAT RATHERHA JT SIMPLY PUTTING IN AN ESCALATOR CLAUSE LIKE WE WOULD DO IN A CORPORATE WORLD SET K. >> AND COUNCILMAN, I'LL SHARE WITH YOU THAT WE WERE ONE OF THE FIRST CITIES TO DO THIS BACK IN THE EARLY AND MID 2000S THROUGH SOME OF OUR FACILITIES AGREEMENTS FOR TELECOM AND THINGS LIKE THAT. I KNOW BECAUSE AT THAT POINT I WAS ACTUALLY NEGOTIATING THOSE. AND THE CITIES AROUND US WERE LOOKING FOR THAT, LOOKING, FOR EXAMPLE,S TO DO THAT. SO WE HAVE AS WE DO IN MANY CASES, WE HAVE SET THE STANDARD IN SOME WAYS, BUT I THINK THE ASPECT OF WHAT THAT INFLATIONARY FACTOR, IF THERE IS A MINIMUM, WE WILL ALWAYS HAVE AN INFLATIONARY FACTOR IN THERE, BUT IS THERE A MINIMUM AMOUNT THAT COUNCIL EXPECTS US TO HAVE THAT THEY WANT US TO HOLD THE LINE ON IN THOSE NEGOTIATIONS, I THINK THAT IS -- THAT'S KIND OF THE DIRECTION, I THINK, COUNCILMAN RICCIARDELLI AND I THINK THAT'S THE DIRECTION STAFF REALLY NEEDS. BECAUSE ESCALATORS ARE A PART OF MUNICIPAL CONTRACTS, WE HAVE THOSE, BUT WHAT ARE WE TYING THAT BACK TO AND IS THERE A MINIMUM STANDARD. >> Grady: I THINK ALSO TO ADD ON TO MY COMMENT, AS WE CAN SEE T KNOW, THIS IS AN INFLATIONARY RATE THAT'S CONSUMER ORIENTED. THERE IS A SIGNIFICANTLY DIFFERENT INFLATIONARY RATE ON THE CONSTRUCTION SIDE OF THINGS. ESPECIALLY WHEN WE'RE TALKING ABOUT NONRESIDENTIAL CONSTRUCTION THAT THE INFLATION RATE IS SIGNIFICANTLY DIFFERENT THAN WHAT WE'RE SEEING ON THE SCREEN HERE, SO I THINK WE HAVE TO TAKE THAT INTO CONSIDERATION. >> Mayor Muns: COUNCILMAN RICCIARDELLI? >> Ricciardelli: THANK YOU, MAYOR. I JUST WANTED TO CLARIFY SOMETHING. I THINK THIS IS -- THE IDEA WOULD BE THAT THE POLICY WOULD GIVE GENERAL GUIDANCE. I DON'T KNOW THAT IT WOULD BE& INF INFLEXIBLE THAT, YOU KNOW, THIS IS THE MINIMUM WE COULD NEVER GO BELOW. I THINK IT IT WOULD BE MORE IF THE STAFF PROPOSED SOMETHING BELOW THIS POLICY, THERE WOULD BE A GOOD POLICY FOR THAT. WE WEREN'T GOING TO GET INSTRA STRUCTURE BUILD BY A PRIVATE COMPANY, BUT ESSENTIALLY, IN THE ORDINARY CASE, THIS IS HOW IT SHOULD BE AND THERE SHOULD BE A GOOD REASON IF WE DEPART FROM THAT. AND THE OTHER THING I WANTED TO CLARIFY, JUST SINCE THERE WAS A MENTION OF FEES BEING PAID FROM THE SAME CHECKBOOK, WHICH IS COMPLETELY TRUE, I'M NOT PROPOSING THIS FOR ANY FEES PAID DIRECTLY BY PLANO RESIDENTS. THIS IS NOT, YOU KNOW, FOR THE WATER BILL OR FOR ANY OTHER BILL YOU WOULD GET FROM THE CITY. THIS IS FOR CONTRACTS WITH CORPORATIONS THAT ALREADY TYPICALLY INCLUDE PRICE ESCALATOR CLAUSES, HOW MUCH& SHOULD IT BE, SHOULD IT BE PEGGED TO INFLATION, LESS THAN INFLATION. I'M NOT PROPOSING TYING ANYBODY'S WATER BILL TO INFLATION, SO I JUST WANT TO MAKE THAT VERY CLEAR. >> Isrealson: I APPRECIATE THAT. AND FOR CLARIFICATION, I KNOW THAT THIS SIDE HASN'T SPOKEN INN THIS YET, BUT FOR CLARIFICATION, WHAT I HEARD COUNCILMEMBER AND I WANT TO MAKE SURE THAT WE'RE ON THE SAME PAGE, IS RATHER THAN HARD AND FAST RULE, WE HAVE A TARGET, BASICALLY, IS WHAT I'M HEARING, IS A IS A TARGET WE WORK TOWARDS, AND IF WEWE'RE NOT ABLE TO ACHIEVE IT, WE HAVE A RATIONALE BEHIND THAT. >> HOWEVER, I WANT TO CAUTION THAT WE NEED TO TREAT SIMILARLY SITUATED BUSINESSES, ORGANIZATIONS, PEOPLE THE SAME. SO THIS IDEA THAT IF THEY PUSH BACK AND SAY THEY WON'T BUILD, SO WE JUST GIVE THEM A BREAK IS NOT REALLY HOW WE APPROACH CONTRACTS. >> Mayor Muns: GO AHEAD, SHELBY. >> I AGREE WITH MOST EVERYTHING THAT'S BEEN SAID SO FAR. THE -- AND COUNCILMAN GRADY IS RIGHT, THE CONSTRUCTION COSTS AND THE INFLATION THEREIN ARE VERY DIFFERENT FROM THE CONSUMER PRICE INDEX, WHICH IS WHY I THINK COUNCILMEMBER CCIARDELLI'S SUGGESTION OF, LET'S NOT SAY TYING TO BUT TARGETING EITHER THE MUNICIPAL PRICE INDEX IS A GOOD IDEA. AND YOU'RE AB ABSOLUTELY, RIGHT, MARK, WHEN YOU GO INTO THIS, IT REQUIRES NEGOTIATIONS. AND SO HAVING THAT GUIDANCE, THIS IS WHAT WE NEED TO MOVE TOWARDS I THINK SERVES THE BEST INTEREST OF THE CITY AND OUR PEOPLE WHILE NOT ALIENATING ANY TYPE OF SERVICE THAT MAY BE CONSIDERING INVESTING INUR CITY, BUT I CAN SAY ON THE FLIP SIDE OF THAT, I'M HOLY UNC WHOLLY UNCOMFORTABLE WITH A 3% PER DECADE AUTOMATIC. >> Mayor Muns: ANYBODY ELSE? YOU WANT TO -- >> Isrealson: WELL, I THINK GOING BACK TO PAIGE'S POINT, A TARGET IS GREAT AND TREATING EVERYBODY EQUALLY IS IMPORTANT FOR THAT, SO I THINK WHAT I'M HEARING IS -- FROM THE COUNCIL PERSPECTIVE THAT WE NEED TO MOVE TOWARDS THE MUNICIPAL COSTING -- I'LL JUST USE THE MUNICIPAL COST INDEX, THE MUNICIPAL COST INDEX OR THE CONSUMER PRICE INDEX AS THE STANDARD THAT WE MOVE TO ON ANNUAL BASIS WITHIN OUR CONTRACTS, AND THEN IF WE'RE UNABLE TO REACH AGREEMENT, THEN BRING THAT BACK TO COUNCIL FOR CONSIDERATION. >> Mayor Muns: EVERYBODY OKAY WITH THAT? >> Isrealson: OKAY. >> Mayor Muns: THANK YOU. THE GREAT UPDATE REBATE. >> Isrealson: MAYOR AND COUNCIL, AYOU KNOW, WE HAVE A HIGHL SUCCESSFUL PROGRAM WITHIN THE CITY WHICH PROVIDES CITY PARTTATION IN THE UPDATE OF CERTAIN RESIDENTIAL FACILITIES IN THE CITY. AND LORI SCHWARTS' GROUP AND NEIGHBORHOOD SERVICES HAS GROWN THIS PROGRAM SIGNIFICANTLY OVER THE LAST DECADE, AND THERE'S A LOT THAT'S CHANGED IN OUR COMMUNITY OVER THE LAST DECADE. I THINK WHEN WE STARTED DOING THIS, THE AVERAGE HOME VALUE IN PLANO WAS PROBABLY IN THE 200,000S, NOW WE'RE BORDERING $500,000 FOR THE AVERAGE HOME IN PLANO, AND COUNCILMAN RICCIARDELLI HAD BROUGHT UP SOME CRITERIA FOR DISCUSSION AS FAR AS OWNERSHIP AS WELL AS WHAT THE MONEY CAN BE USED FOR, BUT I WANTED TO LET LORI PROVIDE A QUICK OVERVIEW OF& THE PROGRAM. >> GOOD MORNING, EVERYBODY. I JUST HAVE SOME QUICK INFORMATION THAT I WANTED TO PROVIDE TO YOU. I APOLOGIZE IT WASN'T ABLE TO GET IN YOUR PACKET. WE NEEDED TO GET SOME UPDATED MAPS TO PRESENT TO YOU TODAY, SO THAT IS THE REASON THAT YOU DIDN'T GET IT UNTIL THIS MORNING, BUT JUST KIND OF GOINGACK TO SORT OF THE HISTORY OF WHAT HAPPENED WITH THE GREAT UPDATE REBATE, THIS WAS INITIATED BACK IN APRIL OF 2014, AND THERE WERE KIND OF FOUR STATED PURPOSES AT THE TIME. I THINK ALL OF US CAN KIND OF LOOK AT THE BULLET POINT NUMBER ONE AND THINK ABOUT HOW DIFFERENT OUR HOUSING MARKET WAS AT THAT TIME. BACK WHEN WE STARTED IN 2014, OUR MAXIMUM HOUSE VALUE THAT WE WERE LOOKING AT FOR THIS PROGRAM WAS 200,000. AND SO THAT JUST GIVES YOU AN IDEA OF HOW SIGNIFICANTLY THAT HAS CHANGED. I DON'T THINK THAT NECESSARILY THE FIRST BULLET POINT IS AS OF THE SAME IMPORTANCE AS IT WAS AT THAT TIME, BUT IT CERTAINLY IS SOMETHING TO CONSIDER AS WE LOOK AT HOUSING MARKET CHANGES OVER TIME. BECAUSE EVEN THOUGH WE'RE IN AN UPSWING MARKET FOR HOUSING, IT IS POSSIBLE THAT THAT COULD SHIFT IN THE FUTURE. THE SECOND BULLET POINT WAS REALLY TO INCENTIVIZE REINVESTMENT INTO OUR EXISTING NEIGHBORHOODS AND HOUSING, TO ALSO REMAIN COMPETITIVE IN THE REGION. WE HAVE A SIGNIFICANT NUMBER OF HOUSING UNITS THAT ARE OVER 30 YEARS OLD, AND SO ONE OF THE THINGSHATE WERE LOOKING AT AS PART OF THIS PROGRAM IS TO ENSURE THAT WE WERE BEING COMPETITIVE IN THE MARKET. WE DON'T HAVE AS MANY NEW HOUSING UNITS, SO HOW CAN WE INCENTIVIZE PEOPLE TO MOVE HERE AND INVEST IN OLDER HOMES THAT HAVE A LITTLE BIT MORE UPKEEP. AND THEN OVERALL, THIS IS PROBABLY THE MOST IMPORTANT PART IS MAKING SURE THAT WE HAVE QUALITY HOUSING STOCK, QUALITY HOUSING INFRASTRUCTURE. OUR HOUSING UNITS ARE A LARGE PART OF OUR PUBLIC INFRASTRUCTURE. IF YOU THINK OF IT AS A HOLISTIC IDEA, AND WE WANT TO MAKE SE THAT WE'RE CONTINUING TO SEE THAT REINVESTMENT INTO HOUSING BECAUSE WE CERTAINLY DON'T WANT TO MOVE INTO SOMETHING WHERE WE HAVE BLIGHTED HOUSES OR THINGS LIKE THAT. SO THOSE WERE JUST SORT OF THE FOUR FIRST BULLET POINTS. LOOKING AT THIS MAP, I KNOW Y'ALL HAVE SEEN THIS A LOT, BUT THIS IS JUST GIVING YOU AN IDEA OF SORT OF THE HOUSING DEVELOPMENT OVER TIME. THE RED, ORANGE, YELLOW ARE OUR OLDEST HOUSING UNITS, SO THOSE ARE THE UNITS -- IT ALMOST IS LIKE A CONCENTRIC CIRCLE KIND OF MOVING OUT FROM HISTORIC DOWNTOWN, AND THE MAJORITY OF OUR HOUSES AT THIS POINT, 63% OF ALL OF OUR HOUSING UNITS AT THIS POINT ARE 30 YEARS OR OLDER. SO THAT IS -- I THINK THAT'S A PRETTY SIGNIFICANT NUMBER FOR EVERYONE TO KNOW. SO JUST A LITTLE BIT MORE ABOUT THE PROGRAM BACKGROUND. AS MENTIONED, IT WAS INTENDED TO SPUR REINVESTMENT INTO OUR OLDER MODERATELY PRICED HOMES. WE WERE LOOKING AT HOUSES 35 YEARS OR OLDER, AND SO THAT'S BEEN SOMETHING THAT'S BEEN CONSISTENT SINCE 2014. HOUSING ADMINISTRATION SINGLE FAMILY MORTGAGE LENDING LIMIT. SOME OF YOU MAY REMEMBER, I CAME TO YOU AT THE END OF LAST YEAR AND ASKED TO SHIFT THAT BECAUSE WE HAD BEEN AT 70% OF THAT LIMIT FOR MOST OF THE HISTORY OF THIS PROGRAMMING. THE REASON WE DID THAT IS BECAUSE WE WERE STARTING TO SEE THAT WE WERE NOT KEEPING UP. AND THE NUMBER OF HOUSES THAT WE STARTED AT WITH GREAT UPTAKE REBATE WAS ABOUT 16,000, AND WE WERE GOING TO DROP SIGNIFICANTLY I WE DID NOT SHIFT THIS INDEXING THAT WE WERE CURRENTLY USING. THE OTHER THING THAT WE SHIFTED LAST YEAR IS THE MANDATORY INVESTMENT. SO IT IS THE LESSER OF 10% OF THE APPRAISED VALUE OR $20,000, WHICHEVER IS LESS. AND SO WE HAD HAD IT AT 20,000 FOR A VERY LONG TIME BECAUSE THAT WAS 10% OF A $200,000 HOUSE IN 2014. BUT WITH THE SHIFTS IN THE HOUSING MARKET, WE DID NOT FEEL THAT WE COULD ASK PEOPLE TO -- WE DN'T WANTO KEEP THAT 10%, BECAUSE IT GETS VERY DIFFICULT TO TRY AND DO SOME OF THOSE INVESTMENTS ONCE IT GETS PAST 20,000. AND THE OTHER THING THAT'S REMAINED STATIONARY IS THAT $5,000 MAX REBATE. THAT WAS PART OF THE PROGRAM TO BEGIN WITH, AND THAT CONTINUES TO THIS DAY. SO THIS IS JUST AN UPDATED MAP. SO THIS IS SHOWING FULL PROGRAM STATISTICS AT THIS POINT. SINCE 2014, WE HAVE HAD 1100 APPLICATIONS. THE CITY OF PLANO HAS PUT IN $4.5 MILLION INTO THE GREAT UPDATEEBATE PROGRAM. WE HAVE SEEN INVESTMENTS BY PROPERTY OWNERS OF 31.5 MILLION, SO THIS IS A SIGNIFICANT REINVESTMENT PROGRAM INTO OUR NEIGHBORHOODS. SO WE'RE SEEING A TOTAL INVESTMENT OF OVER $36 MILLION. AND I DON'T KNOW IF YOU WOULD LIKE, I CAN ALWAYS KIND OF GO A LITTLE BIT MORE ABOUT WHAT THOSE COLORS ARE, BUT ESSENTIALLY THOSE ARE BASED OFF OF SORT OF AGE OF HOUSE. THE BROWN IS 1970 TO 1979, SO THOSE ARE HOUSES -- BECAUSE THAT'S THE PREDOMINANT COLOR ON THERE, I JUST WANTED TO EXPLAIN WHAT THAT COLOR WAS. THAT'S MAINLY HOUSING THAT IS BUILT IN THE '70S. SO THIS IS ANOTHER MAP KIND OF SHOWING YOU WHAT THE ELIGIBLE PROPERTIES ARE RIGHT NOW. AS NOTED, THE SHIFT TO THE 85% OF OUR INDEX MODEL NOW HAS A MAXIMUM HOUSE VALUE OF 383,180, SO I WANTED TO JUST TALK TO YOU A LITTLE BIT ABOUT WHAT HAPPENS OVER THE COURSE OF A YEAR. SO THIS IS UPDATED ONCE A YEAR, THE MORTGAGE LENDING LIMIT IS UPDATED ONCE A YEAR. AND SO WE ADJUST THE ELIGIBLE HOUSES ADJUST WHEN WE GET THAT UPDATE. THE OTHER TIME THAT IT UPDATES IS RIGHT NOW, WHEN WE GET THE APPRAISAL ROLL UPDATED. SO WE'LL SEE HOUSES ROLL OFF DURING APPRAISAL UPDATES BECAUSE RIGHT KNOW WE'RE IN A HOUSING M MARKET THAT'S GROWING, WHEN WE SHIFT TO THE UPDATED INDEX MODEL, THEN WE SEE MORE COMING ON. SO TWICE A YEAR WE'RE LOOKING AT ELIGIBILITY OF PROPERTIES ACROSS THE CITY. AND THEN THIS ONE IS JUST SHOWING YOU THE DIFFERENCE BETWEEN 2021 AND 2022, SO THE ELIGIBLE PROPERTIES IN 2021 WERE BLUE. AND THOSE ELIGIBLE IN 2022 ARE ORANGE.3 SO SOME OF THE THINGS THAT, YOU KNOW, WE'VE GOTTEN SOME FEEDBACK ON THIS, SO SOME OF THE THINGS THAT WE DID, BECAUSE OF THE CHANGE IN THE HOUSING MARKET IS WE'VE EXTENDED THAT TIME PERIOD TO COMPLETE PROJECTS FROM THREE TO FOUR MONTHS, BECAUSE OF SUPPLY CHAIN ISSUES AND OTHER CONSTRUCTION PROJECTS. AND THE OTHER THING THAT WE'RE CONTINUING TO DO IS ENSURE THAT OUR PROGRAM FUNDING IS FIAL YEAR.FORE THE END OF THE DURING PANDEMIC, WE STILL HAD A STRONG DEMAND FOR THIS PROGRAM. WHERE WE USED TO RUN OUT OF MONEY IN APRIL, MAY, IT'S BEEN MORE MAY/JUNE, BUT WE'RE STILL CONTINUING TO SEE THAT. AND IN THIS YEAR, WE'RE STILL CONTINUING TO HAVE APPLICATIONS COME IN. AND JUST SOME IDEAS TO THINK ABOUT, I KNOW THAT THERE'S SOME THINGS THAT COUNCILMEMBER RICCIARDELLI WOULD LIKE FOR US TO CONSIDER AND WE JUST WANTED TO PROVIDE SOME FEEDBACK, WE DO THINK THAT IT MAY BE TIME TO GAIN SOME ADDITIONAL FEEDBACK, SINCE THE PROGRAM'S BEEN IN PLACE FOR EIGHT YEARS. WHEN WE INITIALLY CREATED THIS PROGRAM, WE MET WITH THE COLLIN COUNTY ASSOCIATION OF REALTORS, GOT GREAT FEEDBACK FROM THEM ABOUT HOW TO DEVELOP OUR PROGRAM. WE'D LIKE TO TALK TO PAST PROGRAM PARTICIPANTS AND THEN ALSO JUST GENERAL PUBLIC MEETINGS TO GAIN SOME INPUT, POTENTIALLY LIKE HOAS THAT HAVE HOUSING THAT WOULD BE ELIGIBLE FOR THIS. THE OTHER THING WE'D LIKE TO TALK AS PART OF THIS IS CONSIDERING PROGRAMMATIC CHANGES TO ASSIST SENIORS. WHAT WE'RE SEEING AT THIS POINT IS THAT $20,000 IS DIFFICULT FOR SOME OF THE SENIORS ON FIXED INCOME TO BE ABLE TO PARTICIPATE IN THE PROGRAM, SO THAT IS SOMETHING THAT AS WE TALK ABOUT THI WE WOULD LIKE T TO ALSO HAVE COUNCIL CONSIDER. THAT'S JUST A QUICK OVERVIEW AND I'M AVAILABLE FOR ANY QUESTIONS YOU MIGHT HAVE. >> Mayor Muns: MAYOR PRO TEM. >> Prince: YES, THANK YOU FOR THIS REPORT. AS YOU MENTIONED WITH THE CHANGE IN OUR HOUSING MARKET, I THINK PERSONALLY MY CONCERN IS A LITTLE BIT DIFFERENT, YOU KNOW, THAN IT WAS BEFORE ABOUT MAKING SURE THAT WE HAD PROPERTIES THAT WERE ONES THAT PEOPLE WANTED TO COME TO, BECAUSE NOW WE DON'T HAVE A LOT FOR PEOPLE TO COME TO. BUT SOME OF THE THINGS THAT VE HEARD CONCERNS ABOUT IS WITH OUR AGING PROPERTIES, A LOT OF PEOPLE HAVE NOW OR ARE EVENTUALLY GOING TO HAVE MAJOR PLUMBING ISSUES THAT THEY HAVE TO ADDRESS AND THEN FOUNDATION ISSUES, ESPECIALLY WITH SO EVEN IF YOUR MARKET VALUE INCREASES ON YOUR HOUSE THIS MUCH, IT DOESN'T MEAN THAT YOUR INCOME HAS GONE UP AND IT DOESN'T MEAN YOU'RE REALIZING THAT INCOME UNLESS YOU'RE SELLING YOUR HOUSE. SO I THINK I HAVE CONCERNS THAT WE MAY SEE WITH THE HOUSES AGING, AN INFLUX OF PEOPLE WHO ARE NOT GOING TO BE ABLE TO ADDRESS THOSE NEEDS FINANCIALLY, EVEN THE PLUMBING ISSUES, THE FOUNDATION ISSUES, SOME OF THOSE MAJOR UPKEEPS ON THEIR HOUSE. AND SO I FEEL LIKE BETWEEN THE -- RESTRICTIONS ON THE RENOVATION PROGRAM AND SOME OF THESE, LIKE YOU MENTIONED THE SENIORS, IF WE DON'T MAKE SOME ADJUSTMENTS, I THINK THERE ARE GOING TO BE A LOT OF PEOPLE WHO MIGHT HAVE BEEN ABLE TO BENEFIT FROM THIS BEFORE WHO PROBABLY NEEDED IT, BUT NOW ARE GOING TO BE TAKEN OFF A WE'RA BIG PERCENTAGE OF PEOPLE WHO ARE GOING TO BE STRUGGLING TO ADDRESS SOME OF THOSE MAIRNG MAJOR NEEDS IN THEIR HOUSE. >> Ricciardelli: LORI, THANK YOU FOR THAT GREAT PRESENTATION. BEFORE I PROPOSE A COUPLE OF IMPROVEMENTS, I WANTED TO ASK A COUPLE OF QUESTIONS. FIRST I SAW IN THE NUMBERS THAT YOUR TEAM PROVIDED, THAT AS IS THE CASE EVERY YEAR, THERE ARE MANY MORE APPLICANTS& THAN THERE ARE FUNDS TO GO AROUND. AND THIS YEAR THIS PAST YEAR WE WERE ABLE TO DISTRIBUTE A LITTLE OVER 600,000, I BELIEVE, BUT THERE WERE 127 INTERESTED PROPERTY OWNERS STILL ON THE CONTACT LIST AFTER THE FUNDS WERE ENCUMBERED. AND AT THE MAXIMUM $5,000 REBATE PER PROPERTY, THAT 127 TIMES 5,000 WOULD BE 635,000. THAT SUGGESTS THAT WE WERE ONLY ABLE TO PROVIDE FUNDING TO ABOUT HALF OF THE PEOPLE IN PLANO WHO WERE INTERESTED IN THE GREAT UPDATE REBATE. WOULD YOU AGREE WITH THAT ASSESSMENT? >> I WOULD. AND IF I COULD GIV YA LITTLE BIT OF CONTEXT, I'VE SHARED THIS WITH COUNCIL -- THE CITY MANAGER AS WELL. BACK IN 2018 BEFORE MARK BECAME CITY MANAGER, WE WENT TO CITY MANAGER GLASSCOCK WITH OUR CONCERNS ABOUT THIS. SO ONE OF THE THINGS THAT WE HAVE DONE FOR THE LAST SEVERAL YEARS IS THAT AFTER THE NEIGHBORHOOD VITALITY AND BEAUTIFICATION GRANT CYCLES HAVE BEEN COMPLETED, WE HAVE TAKEN WHATEVER REMAINDER FUNDS ARE PART OF THAT NEIGHBORHOOD REINVESTMENT AND HAVE TRANSFERRED IT OVER TO GREAT UPDATE REBATE TO MANAGE THAT WAITLIST, BECAUSE THE WAITLIST HAS BEEN VERY, VY DIFFICULT. SO THESE ARE ALREADY FUNDS THAT ARE WITHIN THE SAME COST CENTER, THAT THEN WE ARE TRYING TO HELP MANAGE THAT. SO WE HAVE BEEN ADDRESSING THAT FOR THE LAST FOUR YEARS. BUT YOU ARE 100% CORRECT, EVEN WITH THAT WE STILL END UP HAVING WAITLISTS PROPERTIES. >> Ricciardelli: AND THAN YOU FOR THAT, LORI. AND THEN THE OTHER QUESTION WAS -- I DON'T THINK -- AND THIS IS NOT REALLY THE PURPOSE OF THE PROGRAM AS I UNDERSTAND IT, BUT WE DON'T TYPICALLY SEE AN INCREASE IN TAXABLE VALUES SUCH THAT THIS IS -- THIS IS NOT REALLY LIKE AN ECONOMIC DEVELOPMENT PROGRAM TO -- YOU KNOW, TO INCREASE THE VALUE OF THE TAX BASE OR ANYTHING LIKE THAT. >> NO, SIR. THIS REALLY -- THE MAIN PURPOSE OF THE PROGRAM, IT DOES SECURE THAT HOUSING VALUE RETENTION WHICH, YOU KNOW, LIKE I SAID, THIS MARKET'S DIFFERENT. >> Ricciardelli: FOR SURE. >> BUT OVER TIME IF WE SHOULD EVER HAVE A SHIFT IN THE MARKET, WHAT WE'VE SEEN IS THAT PEOPLE ARE MORE WILLING TO PURCHASE INTO IMPROVED HOMES THAN THEY ARE HOMES THAT ARE NOT IMPROVED. I THINK IT'S VERY DIFFICULT IF YOU'RE NOT PART OF THE CONSTRUCTION INDUSTRY TO BE WILLING TO TAKE ON A HOUSING HAB PROJECT. I DID A COUPLE YEARS AGO AND IT WAS OVERWHELMING. AND I'M EVEN IN, YOU KNOW, THIS BUSINESS. AND, YOU KNOW, SO I THINK THAT PART OF THE CHALLENGE THAT WE'VE HAD IS ENSURING THAT WE'RE ABLE TO HELP PEOPLE IMPROVE THOSE HOMES. YOU'RE 100% CORRECT, THAT WE HAVE HAD A LOT OF PEOPLE COMING TO US WITH PLUMBING PROBLEMS, LIKE SIGNIFICANT SLAB -- WHERE WE'VE HAD SLABS -- ONE OF THE CHALLENGES WITH ALL OF THIS IS THAT BACK IN THE '80S IS WHEN WE HAD THE SHIFT WITH THE MATERIALS FOR PLUMBING, AND IF YOUR HOUSE IS BUILT BEFORE 1983, YOU HAVE CAST IRON PIPES. THAT HAS A LIFETIME. AND SO WHAT WE'RE SEEING IS A LOT OF PEOPLE ARE HAVING TO DO REPLACEMENT OF THAT PLUMBING UNDERNEATH THEIR SLAPS. SLABS. THOSE ARE SIGNIFICANT COST PROJECTS. AND SO WE'VE HAD A LOT OF APPLICATIONS COMING FORWARD FOR THOSE. THEY ARE CONSIDERED EXTERIOR REPAIRS FOR US, WHICH MEANS IT'S A 25% REBATE, SO IT HAS BEEN AN INCREDIBLE PROGRAM TO HELP PEOPLE WITH THAT KIND OF MAINTENANCE BECAUSE I DON'T KNOW HOW MANY OF Y'ALL HAVE SEENHE D UPRONT YARDS AT THIS POINT, BUT THIS HEAT AND SOME OF THE WATERING COSTS HAVE MADE IT -- HAVE CAUSED SOME OF THESE ISSUES TO HAPPEN. SO YOU'RE 100% CORRECT, THAT WE'RE TRYING TO HELP PEOPLE MAINTAIN HOMES, BUT ALSO TO HAVE A HOUSING STOCK THAT IS STAYING CURRENT WITH MARKET CONDITIONS. >> Ricciardelli: WELL. AND THANK YOU FOR THAT, LORI, THANK YOU FOR THE GREAT PRESENTATION AND FOR YOUR GREAT WORK ON THIS PROGRAM WITH THAT, I'LL MOVE INTO THE IMPROVEMENTS THAT I WAS PLANNING TO PROPOSE. ONE IS TO CLOSE WHAT I SEE AS A LOOPHOLE AND THE SECOND IS TO ALIGN THE PROGRAM WITH THE PUBLIC BENEFIT, EVEN MORE SO THAN AT PRESENT. AND I ALSO WANT TO SAY THAT I AGREE WITH THE POINT THAT WAS MADE ABOUT SEEKING INPUT. YOU KNOW, WE DON'T NECESSARILY HAVE TO VOTE ON THIS TODAY, I THINK, YOU KNOW, STARTING DOWN THE ROAD AND THEN SEEKING INPUT ON WHAT WE'RE PROPOSING, I THINK, IS A GOOD IDEA. SO -- AND ALSO I THINK WE SHOULD EVALUATE ALL OF THIS AGAINST THE BACKDROP OF THE FACT THAT WE TYPICALLY DO RUN OUT OF FUNDS BEFORE THE END OF THE YEAR AND AT PRE PRESENT, WE'RE ONLY ABLE TO APPROVE ABOUT HALF -- I DON'T KNOW IF IT'S HALF OFHE APPLICATIONS, BUT HALF OF THE PEOPLE WHO ARE INTERESTED IN USING THE GREAT UPDATE REBATE. AND SO WE WANT TO MAKE SURE TO USE THESE FUNDS WISELY. SO CLOSING THE LOOPHOLE, APPLYING FOR THE REBATE MUST BE OWNER OCCUPIED. AS WE JUST DISCUSSED WE ALREADY HAVE A CRITERION IN PLACE WHERE THE CAD VALUATION MUST BE LESS THAN OR EQUAL TO THE HOUSING, FOR THE COUNTY FOR THE CURRENT YEAR, THAT'S 383,180. THE PURPOSE OF THAT LIMIT, AS I HAVE ALWAYS UNDERSTOOD IT, IS TO ENSURE THAT TAXPAYER FUNDS ARE ONLY ASSISTING THOSE FOR WHO NEEDED PREPARES MIGHT PRESENT AN UNDUE FINANCIAL BURDEN IN THE ABSENCE OF THE GREAT UPDATE REBATE. ESSENTIALLY THE HOME VALUE LIMIT FOR ELIGIBILITY IS APPROXIMATELY FOR MEANS TESTING THE PROGRAM. THE VALUE OF THE RESIDENCE IS OF COURSE ONLY A MEANINGFUL PROXY FOR MEANS TESTING WHEN THE RESIDENCE IS OWNER OCCUPIED. AT LEAST IT'S SOME PROXY. IT COMPLETELY BREAKS DOWN WHEN THE HOUSE IS NOT OWNER OCCUPIED AND THIS IS ESPECIALLY GIVE IMPORTANT GIVEN THE RISE IN PRIVATE EQUITY FIRMS INVESTING IN THE PORTFOLIOS OF SINGLE FAMILY RESIDENT HOMES. HERE'S THE LOOPHOLE, A PRIVATE EQUITY FIRM THAT OWNS AND RENTS OUT A PORTFOLIO OF HOUSING THAT INCLUDES A $350,000 HOUSE IN PLANO QUALIFIES FOR THE REBATE. A SHORT TERM RENTAL QUALIFIES. A HOUSE FLIPPER, AND DON'T GET UPPER, BUT A HOUSE FIXER WHO FIXES UP AND SELLS A $350,000 IN THE CITY OF PLANO CAN USE THE GREAT UPDATE REBATE TO PAY FOR SOME OF THE REPAIRS, AND THEREBY INCREASE THEIR PROFIT MARGIN BUT A MIDDLE CLASS PLANO RESIDENT LIVING IN A $400,000 CLASS DOES NOT QUALIFY. I DON'T THINK THAT WAS EVER OUR INTENT. I PROPOSE THAT WE CLOSE THIS LOOPHOLE BY REQUIRING A RESIDENT MUST BE OWNER OCCUPIED TO QUALIFY FOR THE REBATE, OTHERWISE WE WOULD NEED TO REMOVE THE MAXIMUM VALUE WHERE A MILLION DOLR PRIVATE EQUITY FIRM CAN QUALIFY BUT SOME MIDDLE CLASS RESIDENTS DO NOT, BUT I WOULD PROPOSE WE ZERO HONOR THE INTENT OF THE HOME VALUE FOR PROGRAM ELIGIBILITY BY REQUIRING THAT THE RESIDENTS BE OWNER OCCUPIED. AND I WOULD FURTHER STATE, I GOT SOME NUMBERS FROM THE STAFF, THIS WOULD NOT BE A GREAT DEPARTURE FROM WHAT'S CURRENTLY HAPPENING OF THE 134, AND LORI, PLEASE CORRECT ME IF I'M WRONG IF BUT OF THE 134 APPLICATIONS APPROVED, THERE WERE 129 HOMEOWNERS AND FIVE IN INVESTORS, SO FINANCIALLY IT WOULD NOT BE A HUGE CHANGE TO THE PROGRAM. BUT WE DON'T KNOW WHAT HAPPENS IN THE FUTURE. THE FIVE INVESTORS WOULD HAVE BEEN IMPROVED, COULD HAVE BEEN FIVE MORE HOMEOWNERS WHO LIVED IN PLANO WHO COULD HAVE BEEN APPROVED. SO MAYBE WE SHOULD CHANGE THAT UP FOR DISCUSSION. >> Mayor Muns: WELL, WHAT I'D LIKE TO DO, IF YOU DON'T MIND -- YOUR RECOMMENDATIONS ARE VALID AND THEY HAVE MERIT, BUT I'D REALLY LIKE LORI TO DO THE WORK AND FIND OUT IF IT'S ACTUALLY FEASIBLE TO DO THAT. >> Ricciardelli: OH, SURE. >> I HAVE A QSTIO >> Mayor Muns: HOLD ON. AND I'D ALSO LIKE TO CONSIDER DOING THESE PROGRAM CHANGES IN REGARDS TO THE FEEDBACK AND WHAT THE CHANGES TO ASSIST SENIORS WOULD ACTUALLY MEAN, SPECIFICALLY. >> Ricciardelli: UH-HUH. >> Mayor Muns: SO IF EVERYBODY'S OKAY -- AND, AGAIN, I DON'T WANT TO -- HOLD ON JUST A SECOND, MARIA, BUT TO COME BACK ON AN AGENDA ITEM FOR ACTION TO LOOK AT THESE RECOMMENDATIONS AND SEE WHETHER OR NOT THEY WOULD HAVE AN AFFECT ON US POSITIVELY. MARIA? >> SO I HAVE A QUESTION ABOUT WHAT ANTHONY JUST RAISED ABOUT PRIVATE EQUITY FIRMS BEING PART OF -- THEY'RE ELIGIBLE TO APPLY. SO THROUGHOUT THE TIME THAT WE'VE BEEN DOING THIS, HAS THERE BEEN A -- YOU KNOW, I GUESS AN INCREASE OR A GROUP OF INVESTORS WHO HAVE APPLIED AND BEEN ELIGIBLE? AND WHAT I'M TALKING ABOUT PRIVATE EQUITY FIRMS, I'M NOT TALKING ABO PRIVATE INVESTORS. YOU KNOW, LIKE I LIVE IN A HOUSE THAT'S OWNED BY MY DAUGHTER. SO I'M TECHNICALLY CONSIDERED A RENT IR. BUT, YOU KNOW, I'M THE ONE WHO UPKEEPS THE HOUSE. AND I THINK A LOT OF SENIOR CITIZENS MAY BE THAT WAY. THEY MAY BE LIVING IN THEIR DAUGHTER OR SON'S HOUSE, BUT, YOU KNOW, THEY'RE THE ONE WHO'S ACTUALLY TRYING TO MAINTAIN AND UPKEEP WHILE THEIR DAUGHTERS AND SONS MAY HAVE ALREADY MOVED TO ANOTHER PLACE. SO I GUESS THAT'S MY MAIN QUESTION IS -- AND THEN ALSO THE -- I LIKE TO SEE THE FOCUS MORE ON SENIOR CITIZENS AND THE NEED OF INDIGENCE RATHER THAN, YOU KNOW, BROADENING TO EVERYBODY. >> SO IN RESPONSE TO THE QUESTION ABOUT INVESTOR PROPERTIES, MAXIMUM -- AND REALLY OVER TIME, OUR NUMBERS ARE ABOUT 9% OF INVESTOR PROPERTIES OVER THE ENTIRE LIFETIME OF THE PROGRAM. WHAT WE HAVE SEEN MORE RECENTLY, AND I THINK IT'S PROBABLY A DIRECT REFLECTION OF THE HOUSING MARKET, IS THAT THAT NUMBER'S DROPPED. I DON'T THINK THAT WE ARE -- WITH HAVING INCREASED HOUSING VALUES, I DON'T THINK WE ARE AS ATTRACTIVE AS WE MIGHT HAVE ONCE BEEN FOR INVESTORS TO COME IN AND REHAB PROPERTIES OR FLIP BECAUSE IT'S MORE EXPENSIVE TO BUY INTO PLANO AT THIS POINT. BUT I DON'T KNOW SPECIFICALLY THE ANSWER TO YOUR QUESTION ABOUT HAVE WE SEEN SORT OF INVESTOR OWNERS OWNERS PASSED THE BASIC INFORMATION. I'LL SEE IF IT'S POSSIBLE TO PULL THAT INFORMATION. I THINK THAT ULTIMATELY, YOU'RE RIGHT, WE DON'T HAVE A TON OF INVESTOR APPLICANTS FOR THIS. AND STAFF I NOT OPPOSED TO THE CONCEPT OF RESTRICTING IT TO THE OWNER OCCUPIED ONLY. SO I JUST WANTED TO GIVE YOU THAT FEEDBACK. >> Ricciardelli: THANK YOU, LORI. AND TO -- DEPUTY MAYOR PRO TEM, TOO'S POINT, I THINK IF WE SAID OWNER OCCUPIED OR OCCUPIED BY AN IMMEDIATE FAMILY MEMBER OF THE OWNER, THAT WOULD TAKE CARE OF THAT CONCERN, IT WOULD STILL PREVENT THE FIRMS OF GOING TO INVESTORS WHO DON'T REALLY NEED THEM. AND WOULD NOW BE A GOOD TIME TO OUTLINE THE SECOND PROPOSED CHANGE OR -- >> Mayor Muns: WELL -- I MEAN, THAT'S FINE. JUST AGAIN, THESE ARE PROSPECTS THAT I WANT NEIGHBORHOOD SERVICES TO LOOK INTO AND THEN BRING IT BACK FOR AN ACTION ITEM. >> Ricciardelli: ABSOLUTELY. YEAH, NOT EXPECTING ACTION ON THIS, BUT I GUESS SINCE WE'RE ON THE AGENDA, I'LL JUST TRY TO QUICKLY OUTLINE THIS. THE SECOND PROPOSAL TO ALIGN WITH THE PUBLIC BENEFIT OF THE PROGRAM IS THAT, YOU KNOW, THE PUBLIC BENEFIT, AS I THINK IT'S BEEN IDENTIFIED AT THE UPKEEP OF AGING NEIGHBORHOODS, AND SO I THINK THAT SHOULD BE THE PRIORITY. OF COURSE, THE RESIDENTS ALREADY HAS TO BE 35 YEARS OLD TO QUALIFY, YOU KNOW, AND YOU KIND OF HAVE THE BROKEN WINDOWS TORY, TT WHEN A NEIGHBORHOOD ISN'T KEPT UP AND BECOMES BLIGHTED, EVERYONE IN THE NEIGHBORHOOD IS AFFECTED, EVEN IF YOU'RE KEEPING UP YOUR INDIVIDUAL PROPERTY, IF YOUR NEIGHBOR'S NIGHT, BLIGHT INVITES CRIME, DECREASED PROPERTY VALUES, THINGS OF THAT NATURE. AND I THINK EXTERNAL RENOVATION SERVE THIS PURPOSE BY KEEPING UP THE APPEARANCE OF A NEIGHBORHOOD. INTERNAL RENOVATIONS DON'T SERVE THAT PURPOSE BECAUSE NO ONE OUTSIDE OF THE HOUSE CAN SEE THE INSIDE OF THE HOUSE UNLESS THEY'RE INVITED IN AS A GUEST. ANOTHER POSSIBLE PUBLIC BENEFIT WOULD BE TO INCREASE THE TAX BASE, BUT THAT'S NOT REALLY BEEN OUR EXPERIENCE WITH THIS PROGRAM NOR IS IT REALLY THE PURPOSE. SO WHAT I WAS GOING TO PROPOSE, KEEPING IN MIND THAT I BELIEVE, YOU KNOW, THE FOUNDATION, THE CAST IRON PIPES, THOSE ARE CONSIDERED EXTERNAL, I BELIEVE, RIGHT? >> UH-HUH. >> Ricciardelli: SO SOME OF THOSE THE MAYOR PRO TEM BROUGHT UP ARE CONSIDERED EXTERNAL, I THINK THAT WOULD MAKE INTERNAL RENOVATIONS INLEGALLABLE FOR THE GREAT UPDATE UNLESS THEY'RE A DISABILITY RENOVATION FOR A DISABLED RESIDENT OR 65 OR OLDER. I'M THINKING OF RENOVATIONS FOR A CHAIR LIFT THAT SOMEONE COULD NO LONGER USE T CHAIRS THAT THAT WOULD QUALIFY AND WE STILL WANT THOSE ACCESSIBILITY RENOVATIONS TO QUALIFY, BUT GIVEN THAT WE'RE NOT ABLE TO FUND ALL THE PEOPLE THAT ARE INTERESTED IN THE GREAT UPDATE REBATE I THINK IT WOULD MAKE SENSE TO GET STAFF FEEDBACK ON THIS, TO PUT THEM WHERE THEY'RE MOST IMPACTFUL WHICH IS EXTERNAL RENOVATIONS, INCLUDING THE FOUNDATION, THE PLUMBING, THOSE ISSUES AND ACCESSIBILITY INTERNAL RENOVATIONS FOR PEOPLE WHO HAVE A DISABILITY OR ARE OLDER AND NEED HELP MAKING THEIR HOUSE MORE FUNCTINAL AS OPPOSED TO THINGS LIKE, YOU KNOW, A COUNTERTOP OR SOMETHING LIKE THAT. AND SO -- >> Mayor Muns: OKAY. >> Ricciardelli: SO I'D PROPOSE THAT CHANGE AS WELL AND OBVIOUSLY INTERESTED DOWN THE ROAD ON THE STAFF'S FEEDBACK. >> Mayor Muns: MAYOR PRO TEM. HOLD ON JUST A SECOND. >> Prince: WHEN YOU COME BACK TO US WITH SOME SUGGESTS, I'D LOVE IF YOU COULD EITHER BRAINSTORM OR POTENTIALLY LOOK AT IF THERE ARE THINGS THAT ARE GOING TO MAKE THE HOUSE POTENTIALLY UNINHABITABLE, LIKES A FOUNDATION FALLING APART OR THE SEWER LINES BREAKING, MAYBE THERE IS A WAY THAT THOSE EITHER GET HIGHER PERCENTAGE OF MONEY THAT WER WILL GIVE THEM OR PERCENTAGE, I'D LOVE TO SEE IF THOSE ARE PROGRAMMATIC CHANGES THAT WE COULD LOOK AT. >> OKAY. IF I COULD JUST RESPOND REALLY QUICKLY ON THAT ONE. RIGHT NOW, EXTERIOR PROJECTS OR LIKE THE PLUMBING PROJECTS THAT WE'VE LOOKED AT, SEWER AND WATERLINE REPAIRS, YOU KNOW, SOME OF THOSE HEAVY DUTY LIFTS, THOSE ARE 25% REBATE. SO CURRENTLY INTERIOR RENOVATIONS, WHICH WOULD BE SOME OF THESE KITCHEN REMODELS, THE BATHROOM REMODELS ARE ONLY REBATED AT 10%, SO WE ALREADY HAVE BUILT THINHE PROGRAM, AND THIS HAS BEEN SINCE THE BEGINNING, A PREFERENCE TOWARDS EXTERIOR PROJECTS VERSUS INTE INTERIOR PROJECTS. JUST REAL QUICK FOR THE PROGRAM YEAR OF THIS PAST YEAR, HALF OF THE PROJECTS THAT WERE APPROVED WERE NOTHING BUT EXTERIOR PROJECTS. AND THEN THE OTHER HALF WAS EITHER A SPLIT OF INTERIOR, SO A FOURTH OF THEM WERE INTERIOR ONLY AND A FOURTH OF THEM WERE BOTH EXTERIOR AND INTERIOR. SO THAT'S PRETTY NORMAL TO SEE KIND OF THE SHIFT OF HOW THIS PROGRAM WORKS, BUT WE'RE HAPPY TO LOOK AT THAT. I THINK IT WOULD BE REALLY HELPFUL FOR US, ALSO, TOAVE THE FEEDBACK FROM THE PROGRAM PARTICIPANTS AND THE HOAS TO UNDERSTAND A LITTLE BIT MORE ABOUT HOW IMPORTANT THESE INTERIOR REBATES ARE. >> Mayor Muns: PLEASE. >> AND JUST GET SOME FEEDBACK FOR COUNCIL, BECAUSE I THINK THAT WOULD BE VERY HELPFUL. >> Mayor Muns: THANK YOU. COUNCILMEMBER HOLMER? >> Holmer: I AGREE WITH ANTHONY -- COUNCILMEMBER RICCIARDELLI. I DON'T THINK WE NEED TO BE PUTTING MONEY INTO INTERIOR RENOVATIONS. I THINK THAT THE MARKET IS SO HOT RIGHT NOW THAT PEOPLE -- IN ORDER TO SELL THEIR HOMES, THEY'RE GOING TO UPDATE THEM. I THINK IT'S IMPTANT TO ENCOURAGE PEOPLE TO HAVE THEIR EXTERIORS LOOKING NICE SO THAT OUR NEIGHBORHOODS LOOK GOOD, BUT I DIDN'T REALIZE THAT AND I'M VERY GLAD TO HEAR THAT, BECAUSE I'VE BEEN RECEIVING A LOT OF PHONE CALLS AND WE JUST FOUND OUT WE'RE GOING TO HAVE TO REDO OUR CAST IRON. I WOULD BE INTERESTED IN MAYBE EXPLORING -- AND I DON'T KNOW WHAT THE RULES ARE, IF THERE'S ANY FEDERAL GUIDELINES, IN MAYBE LOOKING AT THE CAP OF THE VALUE OF THE HOME FOR DOIN HEAVY DUTY INFRASTRUCTURE LIKE FOUNDATION AND CAST IRON, BECAUSE WE HAVE A LOT OF PEOPLE THAT OWN THEIR HOMES, THEY'VE PAID FOR THEIR HOMES, BUT THEY'RE NOW ON A FIXED INCOME, SO MAYBE IF WE COULD GIVE THEM A LITTLE BIT OF GRACE BECAUSE OTHERWISE, I'M HEARING FROM PEOPLE THAT MAY HAVE TO SELL THEIR HOME BECAUSE THEY CAN'T AFFORD THE HEAVY DUTY COST TO DO THAT. SO I'D BE INTERESTED IN THAT. >> ONE OF THE POSITIVES ABOUT THIS IS THIS IS NOT A FEDERAL PROGRAM, IT WAS OUR >> Holmer: THAT WAS ANOTHER QUESTION I HAD. I'M GLAD YOU BROUGHT THAT UP. SO CAN YOU TELL ME WHERE THOSE FUNDS COME FROM. >> THE GENERAL FUND. >> Holmer: IS IT A PERCENTAGE OR JUST A CAPPED AMOUNT EACH. >> WE'VE HAD A CAP L AMOUNT SINCE THE PROGRAM. THAT'S ANOTHER THING JUST TO MENTION TO COUNCIL, WE HAVE KEPT THE SAME BUDGET FOR EIGHT YEARS, SO THAT WAS WHY A NUMBER OF YEARS AGO, WE ASKED FOR THAT EXCESS FUNDS FROM THE SAME NEIGHBORHOOD REVITALIZATION TO HELP US WITH THE WAITLIST BECAUSE WE'VE BEEN UNDER A VERY TIGHT BUDGET DUE TO THE PANDEMIC AND OTHER THINGS THAT HAVE BEEN HAPPENING, SO WE FELT THAT THAT WAS THE BEST USE OF FUNDS TO MAKE SURE THAT IT'S CONTINUINGO G BACK INTO NEIGHBORHOOD REVITALIZATION. SO IT HAS STAYED STABLE AT BASICALLY, I THINK WE'RE AT A HALF A MILLION RIGHT NOW. IS THAT CORRECT? >> Holmer: I HAVE 4.5 MILLION. >> NO, NO, I'M SORRY ANNUALLY. ANNUALLY IT'S ONLY 500,000. >> Holmer: OKAY. I ALSO REALLY LIKE WHAT COUNCILMAN RICCIARDELLI SAID ABOUT IT BEING OWNER OCCUPIED. I DON'T KNOW IF YOU CAN TIE THAT TO MUST HAVE A HOMESTEAD EXEMPTION ON IT. I DON'T KNOW IF THAT WOULD BE A WAY TO -- >> I THINK WE COULD. >> Holmer: I DON'T KNOW, MARIA, DO YOU HAVE A HOMESTEAD EXEMPTION? YOU DON'T? OKAY. I DIDN'T KNOW WITH YOUR DAUGHTER OWNING -- OKAY. SO IF THERE WAS MAYBE SOME WAY TO CONNECT THOSE, BUT... BUT, YEAH, THOSE ARE MY MAIN POINTS. I DO FEEL STRONGLY THAT WE SHOULDN'T BE GIVING PEOPLE REBATES TO PUT IN GRANITE COUNTERTOPS INSIDE THEIR HOME. I THINK THE MARKET'S SO HOT RIGHT NOW, PEOPLE ARE GOING TO UPDATE WHAT THEY NEED TO DO TO SELL THEIR HOMES. SO I APPRECIATE Y BRINGIG UP THOSE POINTS. THANK YOU. >> Ricciardelli: ABSOLUTELY. THANK YOU. >> Mayor Muns: COUNCILMEMBER WILLIAMS? >> Williams: THANK YOU, MAYOR, AND THANK YOU, LORI. I AM ALL IN FAVOR OF HEARING WHAT RECOMMENDATIONS YOU HAVE AS WELL AS RECEIVING COMMUNITY INPUT. I CAN ALSO SAY THAT CATEGORICALLY FOR MYSELF, IF WE'RE GOING TO PUT MONEY TOWARD A PROGRAM SUCH AS THIS TO MAYOR PRO TEM'S POINT, I WOULD -- I WOULD PUT IT TOWARD INSURING THE HEALTH AND SAFETY OF OCCUPANTS WHO MAYBE CANNOT TAKE CARE OF THESE ISSUES THEMSELVES. EVEN IF IT IS A PROXY FOR ANS TESTI AS COUNCILMEMBER RICCIARDELLI NOTED. AND EVEN IF IT'S A SMALL PERCENTAGE OF CASES, I'M NOT COMFORTABLE WITH THE FACT THAT TODAY IN OUR CURRENT PROGRAM INVESTORS CAN GET $5,000 A POP TO UPDATE FORMICA COUNTER TOPS TO QUARTZ AND PAD THEIR PROFIT MARGIN. >> OKAY. >> BECAUSE THIS ITEM. >> Mayor Muns: I THINK HAVE COUNCILMEMBERS SUBMIT THEIR QUESTIONS TO MARK AND HAVE IT COME UP ON A FUTURE AGENDA RATHER THAN HAVE YOU TRY TO ANSWER ALL THE QUESTIONS AND SPEND YOU AWAY. I CAN ALSO SAY THAT REPLACING MY FRONT DOOR, $5,000 DOES NOT EVEN BUY A FRONT DOOR. I THINK THERE'S A LOT OF DISCUSSION TO HAVE ON THIS. THE USE OF FUNDS, WHO'S THE GC ON THE PROJECT, ARE WE DOING THAT, STAFF TIME, ET CETERA. SO MY SUGGESTION IS TO GET ON WITH THE MAJOR PORTION OF OUR MEETING TODAY, SUBMIT THOSE QUESTIONS, IDEAS AND THOUGHTS TO THE CITY MANAGER AND THEN WE CAN BRING THIS UP AT A FUTURE TIME. >> IF I WAS ALLOWED TO SECOND A SUGGESTION, I WOULD SECOND THAT. JUST SAYING. BUT I REALLY APPRECIATE LORI AND HER TEAM'S APPROACH TO THIS. AND OUR DISCUSSION UP UNTO ROBUST DISCUION FROM WHERE WE STARTED TO WHERE WE ARE NOW IT'S TIME FOR US TO GO BACK, RELOOK AT THE GOALS, RELOOK AT THE PROGRAM, DO SOME FOCUS GROUPS, DO SOME RESEARCH TO SEE WHAT'S GOING TO MEET THE NEEDS OF THE COMMUNITY GOING FORWARD FOR THE NEXT EIGHT TO 10 YEARS. SO LORI AND HER TEAM ARE UP FOR THAT. I COMPLETELY AGREE WITH COUNCILMAN GRADY, SEND THEM IN, WE'LL COMPILE THEM WE'LL START SOME FOCUS GROUPS AND HAVE GOOD DISCUSSIONS, BRING BACK SOME RECOMMENDATIONS AND COUNCIL CAN GIVE US DIRECTION. THIS NEXT PROGRAM IS ALREADY BAKED IN BUT IT WILL PROBLY BE FOR THE PROGRAM YEAR AFTER THAT THAT WE'RE REALLY TALKING ABOUT. BUT IT'S A GREAT OPPORTUNITY TO DISCUSS EVERYTHING FROM FUNDING TO USES TO PARTICIPANTS TO, YOU KNOW, WHAT OUR GOALS ARE. AND I THINK WE CAN BRING ALL THOSE THINGS BACK IN A WORK SESSION ITEM THAT WE CAN MAKE SURE THAT IT'S MEETING THE NEEDS OF THE COMMUNITY. >> Mayor Muns: EVERYBODY OKAY WITH THAT? THANK YOU. >> ALL RIGHT. THANK YOU. >> Mayor Muns: THANKS, LORI. >> Isrealson: THE LAST ONE ON THIS PARTICULAR SECTION IS THE ADDITIONAL BUDGET [AUTOMOBILE] >> THIS ONE'S BEEN TAKEN CE OF. WE'VE JUST ADDED AN AGENDA ITEM. COUNCILMAN WILLIAMS WAS ASKING FOR AN ADDITIONAL OPPORTUNITY FOR THE COMMUNITY. WE HAVE PUBLIC HEARINGS ON THE BUDGET AND CIP, THIS IS AN OFFICIAL ITEM TO MAKE SURE WE'RE GETTING FEEDBACK FROM THE COMMUNITY, SO UNLESS THERE'S ADDITIONAL ASPECTS THAT EXAM WILLIAMS WANTS TO HAVE, WE ALREADY HAVE IT PROGRAMMED INTO THE AGENDA FOR THE 22ND TO HAVE THAT OPPORTUNITY FOR FEEDBACK. >> Williams: ONLY TO SAY IF NOBODY SIGNSP TO SPEAK, WE MOVE ALONG. >> Mayor Muns: THANK YOU. LET'S MOVE ON TO GRANT FUNDING REQUESTS. OUR FIRST ITEM IS THE COMMISSION, HAROLD SICKLER? >> Sickler: GOOD MORNING MR. MAYOR, MEMBERS OF THE CITY COUNCIL, CITY STAFF AND INTERESTED COMMUNITY MEMBERS. I SERVE AS THE CHAIR OF THE PLANO HERITAGE COMMISSION. OUR HERITAGE CMISSION IS MADE UP AS MYSELF AS CHAIR OBVIOUSLY, NANCY IS VICE CHAIR [INAUDIBLE] KAREN BOWEN, CHRISTOPHER ROBINSON, JOHN SPENCER AND JANE WATSON. I WANT TO TAKE TIME TO TELL YOU ABOUT SOME OF OUR ACCOMPLISHMENTS AS A COMMISSION. OUR 2021 MAJOR ACCOMPLISHMENTS WERE THE H HAGGARD PARK HERITAGE COMMISSION WHICH YOU'RE FAMILIAR WITH, OBVIOUSLY. DESIGNATION OF THE ALDRIDGE HOUSE AS A TEXAS HISTORIC LANDRK A THE HERITAGE PRESERVATION ORDINANCE UPDATE AND THEN THE LAST FIVE YEARS THE COMMISSION HAS COMPLETED MAJOR UPDATES ON ALL OF -- TO ALL ORDINANCES AND REGULATORY DOCUMENTS RELATED TO THE HERITAGE PRESERVATION PROGRAM. AS YOU CAN SEE, THE 42 CAS OR CERTIFICATE OF APPROPRIATENESS ISSUED IN021, 60% OF THEM WERE APPROVED AT THE STAFF LEVEL. 72% OF THAT NUMBER WERE APPROVED IN A DAY OR LESS, AND THIS IS A REMARKABLE THING. IF YOU'RE UNFAMILIAR WITH THE PRESERVATION COMMUNITY IN COLLIN COUNTY, THAT'S REMARKABLE TO HAVE THAT ABILITY TO DO THAT. OUR COMMISSION TRAINING, OVER THE PAST YEARS, WE'VE HAD SEVERAL TRAINING OPPORTUNITIES FROM THE NATIONAL PARKS SERVICE, THE TEXAS HISTORIC COMMISSION, -- HISTORICAL COMMISSION AND NATIONAL ALLIANCE OF PRESERVATION COMMISSIONS OR NAPC. DURING THE LAST FEW MONTHS, WE'VE ATTENDED A FEW WEBINARS HOSTED BY T NAPC AND THE NATIONAL PARKS SERVICE. LAST MONTH WE ATTENDED THE NAPC FORUM 2022 CONFERENCE IN CINCINNATI OHIO. IT WAS AN HONOR TO HAVE DEPUTY MAYOR PRO TEM MARIA TU ATTEND THE FORUM WITH US. THANK YOU FOR GOING WITH US, AND WE'RE STILL FRIENDS, SO... [LAUGHTER] >> ACTIVE AND FUTURE PROJECTS, GO A LITTLE BIT OUT OF ORDER HERE BECAUSE I WANT TO COMMENT ON SOME OF THE ITEMS. WE HAVE COLLABORATE WITH OTHERS IN PLANO'S SES QUEN 10IAL YEAR OF CELEBRATIONS.& OUR CONTINUING EDUCATION AND COMMUNITY OUTREACH EFFORTS. AND THE BIGGEST PROJECT IS THE HISTORIC RESOURCES SURVEY FOR 2023 UPDATE OF THE HERITAGE PRESERVATION PLAN. THIS IS GOING TO BE A MAJOR PROJECT AND IT WILL BE SOMETHING THAT WE'LL BE PRESENTING TO YOU. AS NOTED IN YOUR MEMO, FOR YE 2022-'23 THE TOTAL AMOUNT OF FUNDING QUESTIONED IS 768 THOUGHT $300 WHICH IS LESS THAN THE AVAILABLE FUNDS ESTIMATED OVERALL THE REQUESTS HAVE REMAINED STABLE AROUND 800,000 FOR A NUMBER OF YEARS. REGARDING HERITAGE PRESERVATION GRANTS AND OUR CRITERIA, OUR GOAL IS TO PRESERVE AND PROMOTE THE CITY'S OF PLANO'S HERITAGE, THEREBY SUPPORTING AND STIMULATING LOCAL BUSINESS AND STRENGTHENING THE CULTURE, PROSPERITY AND WELFARE O PLANO CITIZENS. OUR CRITERIA, HERITAGE TOURISM, PUBLIC EDUCATION IS 50%, HERITAGE PRESERVATION MERIT IS 25%, ADMINISTRATIVE AND PHYSICAL RESPONSIBILITY IS 25%. THOSE ARE FACTORS THAT WE CONSIDER WHEN LOOKING AT GRANTS. REGARDING THE HERITAGE PRESERVATION GRANTS AND RECENT PROJECTS, THESE GRANTS HAVE FUNDED MANY GREAT PROJECTS OVER THE YEARS AS WELL AS THE OPERATIONS AND MAINTENANCE OF SUCH ORGANIZATIONS AS THE HERITAGE FARM STEAD MUSEUM AND THE PLANO CONSERVANCY FOR HISTORIC PRESERVATION, CURATORS OF THE INNER URBAN MUSEUM. REGARDING HERITAGE PRESERVATION GRANTS DURING 2022, THE PAST TWO YEARS HAVE BEEN CHALLENGING FOR ALL THE GRANT RECIPIENTS, BUT THEY CAME UP WITH CREATIVE IDEAS TO REMAIN ENGAGED IN THE COMMUNITY AND TO GENERATE VIRTUAL TOURISM. THE FARMSTEAD MUSEUM HOSTED VIRTUAL SUMMER CAMPS, THE PLANO CONSERVANCY MOVED THEIR EXHIBIT OUTDOORS, INCREASED SOCIAL MEDIA AND BLOG CONTENT. THE TEXAS POOL MASKS -- REQUIRED MASKS FOR THE BRIEF PERIOD THEY WERE OPEN AND COMPLETED PHASE THREE OF THE POOL DECKING PROJECT. 2022-'23 GRANT FUNDING REQUEST. THE COMMISSION RECEIVED THREE APPLICATIONS THIS YEAR TOTALING $768,340 WITH [INDISCERNIBLE] AVAILABLE FOR GRANT REWARDS. REGARDING THE APPLICANTS THE HERITAGE FARMSTEAD MUSEUM HAD APPLIED FOR $480,700, THE PLANO CONSERVANCY FOR HISTORIC PRESERVATION INCORPORATED REQUESTED $214,430,000, THE TEXAS POOL REQUESTED 73,227 FOR A TOTAL OF 768340. THE NEXT THREE SLIDES WILL SUMMARIZE THE PROJECTS REQUESTED BY THE THREE APPLICANTS. HETAGE FARMSTEAD HEUMS,R THE SORRY ABOUT THAT, LET ME MOVE FORWARD THERE, SOME INCLUDED MARKETING, SPECIAL EVENTS SUCH AS THE LIVESTOCK SHOW, SPRING EXTRAVAGANZA, LIGHTS ON THE FARM, RESTORATION OF THE AMY WILSON HOUSE, SPENCER PARK PATHWAY AND THE FARMSTEAD MUSEUM IS REQUESTING THEIR ANNUAL $330,000 FOR OPERATION AND MAINTENANCE FOR A TOTAL OF -- WE'RE RECOMMENDING A TOTAL BUDGET FUNDING FOR THEM FOR $480,000 TOTAL ON THAT. OKAY? THE PLANO CONSERVANCY FOR HISTORIC PRESERVATION, HERE'S A SUMMARY OF THE PROJECTS FOR THE PLANO CONSERVANCY, CEMETERY RESTORATION OF THE PLANO MUTUAL CEMETERY. THE CONSERVANCY IS ALSO REQUESTING THEIR ANNUAL $145,000 FOR OPERATION AND MAINTENANCE. AND THE RECOMMENDED FUNDING TOTAL IS $214,413. THE TEXAS PULL FOUNDATION, HERE'S THE SUMMARY OF THE PROJECT FOR THE TEXAS POOL FOUNDATION. THE HERITAGE COMMISSION RECOMMENDS COMPLETE FUNDING FOR THE MARKETING PROGRAM AND ALSO RECOMMENDS COMPLETE FUNDING FOR THE SEATING PROJECT WITH THE PROVISO THAT THE TEXAS POOL SEEK A LOCAL HERITAGE LANDMARK DESIGNATION WITH THE CITY OF PLANO. THE RECOMMENDED FUNDING IS $31,500. THERE'S A CHANGE FROM WHAT I MENTIONED EARLIER ON WHAT THEY HAD ASKED. WE RECOMMENDED NO FUNDING FOR THE SITE AND TECHNOLOGY PROJECT AS IT APPEARED TO BE AN OPERATION AND MAINTENANCE OR O & M PROJECT AND THE TEXAS POOL FOUNDATION IS NOT ELIGIBLE TO RECEIVE FOR O & M FUNDS, SO THE RECOMMENDED FUNDING IS $31,500. SO IN SUMMARY, THE HERITAGE COMMISSION IS RECOMMENDING $726,613 FOR ALLOCATION OF THE HERITAGE PRESERVATION GRANT FUNDS TO THREE APPLICANTS SHOWN ON THE SLIDE. ADDITIONALLY, THE COMMISSION RECOMMENDED TO USE THE REMAINING $73,387 FOR ACTIVITIES RELATED TO PLANO'S 150TH ANNIVERSARY CELEBRATIONS IN 2023. THIS WILL BE CONSISTENT WITH THE HERITAGE PROGRAM GOALS TO PROMOTE HERITAGE TOURISM WITHIN PLANO AND CITIZENS REGARDING THE CITY'S HISTORY. ANY QUESTIONS OR COMMENTS? >> Mayor Muns: SORRY, ANY QUESTIONS. >> Isrealson: MAYOR AND COUNCIL, I WILL SHARE WITH YOU THAT SHAUNA HAYLEY'S TEAM, THERE SHE IS BACK THERE, WE ARE PLANNING AN EVENT FOR THE 150TH, JUST SO WHEN MR. SICKLER IS TALKING ABOUT THE HERITAGE OF THE CITY, I THINK IT'S IMPORTANT THAT WE RECOGNIZE THAT 150TH BIRTHDAY, SO THERE'S GOING TO BE A VERY LARGE GATHERING TO SING HAPPY BIRTHDAY TO THE CITY, I THINK, IN HAGGARD PARK THAT SHAUNA IS PLANNING, SO WE WILL HAVE MORE DETAILS ABOUT THAT IN THE FUTURE, BUT I KNOW THERE'S BEEN A NUMBER OF PEOPLE IN THE COMMUNITY ASKING ABOUT THAT, SO I THINK THAT'S IMPORTANT AS WELL. SO I JUST WANTED TO ADD THA >> Mayor Muns: THE PRESSURE'S ON YOU, SHAUNA. JUST SAYING. COUNCILMAN GRADY? >> Grady: HAROLD, THANK YOU VERY MUCH FOR THE PRESENTATION. ONE QUICK QUESTION, I'M SURE THAT I HAVE FORGOTTEN THIS, I PROBABLY LEARNED IT OVER TIME, BUT TIME AND FALLING OF HAIR HAS CAUSED MY MEMORY TO BE A LITTLE BIT LESS. WHY DO SOME PROGRAMS QUALIFY FOR O & M AND OTHER PROGRAMS DO NOT QUALIFY FOR O & M? >> MR. BILL, IF YOU CAN ANSWER THAT QUESTION FOR ME. I ALWAYS DEPEND UPON STAFF FOR THESE WONDERFUL -- I CAN EXPLAIN IT TO YOU, BUT HE'S VERY SUCCINCT, SO... >> THANK YOU. MIKE BILL, COMPREHENSIVE PLANNING MANAGEMENT. THAT WAS A CHANGE MADE BACK IN 2009-2010 AS A RESULT OF THE ECONOMIC DOWNTURN. THEY THOUGHT THOSE FUNDS SHOULD BE KIND OF CAPPED FOR THE PROGRAMS THAT WERE GRANDFATHERED IN. SO THEY WERE NOT A GRANT RECIPIENT AT THAT TIME THEY'RE NOT ELIGIBLE FOR THE O & M FUNDS AT THIS TIME. >> Grady: IS THERE EVER ANY THOUGHT OF TING A LOOK AT THAT AGAIN NOW THAT THE GREAT RECESSION IS BEHIND US BY 12 YEARS? >> CERTAINLY, WE CAN BE HAPPY TO BRING THAT. >> MR. MAYOR? >> Mayor Muns: GO AHEAD. >> SO I JUST WANTED TO COMMENT, THANK YOU, MR. SICKLER, FOR PRESENTING YOUR BUDGET AND ALSO YOUR RECOMMENDATIONS. I WANTED TO COMMENT ON EVEN THOUGH I'VE BEEN SITTING ON THE HERITAGE COMMISSION AS A LIAISON, I REALLY HAD NO IDEA ABOUT PLANO'S, UM-- U PROJECTS, AND HOW WE ARE VIEWED BY THE REST OF TEXAS AS WELL AS OTHER STATES. UNTIL I WENT TO OHIO AND ACTUALLY ATTENDED THE NATIONAL HERITAGE PRESERVATION CONFERENCE. AND AT THAT PLACE, THAT'S WHEN I FOUND OUT THAT PLANO IS LOOKED UP UPON. WE ARE THE LEADER IN ALL OF OUR HERITAGE PRESERVATION PROJECTS. AS A MATTER OF FACT, UM, I THINK THAT KNOW WHO PERSON ACTUALLY CAME UP TO ME FROM A SMALLER CITY AND SAYS THAT THE WENT ONLINE AND TOOK WORD-FOR-WORD VERBATIM OF OUR ORDINANCES AND THEN COPIED IT AND PUT IT ON THEIR CITY, IS THAT RIGHT? YES. AND THEY WOULD ASK -- AND HE ASKED, CAN YOU PLEASE PUT MORE UPDATES ON THERE, BECAUSE -- [Laughter] BECAUSE WE NEED MORE. >> Mayor Muns: ENCOURAGED. >> Tu: THAT'S RIGHT. SO I THOUGHT HOW AMAZING, I DIDN'T REALIZE THAT WE -- YOU KNOW, WE ARE SUCH A LEADER IN OUR CITY, IN OUR STATE, AS WELL AS NATIONALLY. ANOTHER THING IS THAT THE REASON WHY WE DIDN'T GET AN AWARD THIS YEAR WAS BECAUSE MR. PATEL IS NOW ON THE BOARD, IS THAT RIGHT? >> YES, THAT'S CORRECT. >> Tu: YES, HE'S SITTING THERE IN THE GALLERY. >> THEY DON'T GIVE AWARDS TO AMATEUR? >> Tu: THERE'S A CONFLICT OF INTEREST, BECAUSE HE WOULD BE AWARDING -- [Laughter] BUT APPARENTLY -- >> A VERY HUMBLE MAN. >> Tu: SO APPARTLY PLANO, WE HAVE BEEN WINNING AWARD AFTER AWARD AND FINALLY SAID, FORGET IT WE WON'T GIVE PLANO ANYMORE, AND WE'LL JUST ADOPT HIM AND PUT HIM PERMANENTLY ON THE BOARD. >> Mayor Muns: THAT'S RIGHT. >> Tu: SO I JUST WANTED TO COMMEND YOU AND THE JOB THAT YOU GUYS HAVE DONE FOR, YOU KNOW, BRINGING PLANO INTO THE -- INTO THE SPOTLIGHT FOR THE HERITAGE PRESERVATION. THANK YOU SO MUCH. >> Mayor Muns: THANK YOU SO MUCH, APPRECIATE IT. COUNCILMAN WILLIAMS. >> Williams: I WANTED TO RECOGNIZE THE INCLUSION WITH THE S STRATEGIC SELLING. >> THEY PARTICIPATE, AND WHEN THEY PARTICIPATE THEY WILL BE RECOGNIZED, THANK YOU SO MUCH. [Laughter]. >> Mayor Muns: THANK YOU SO MUCH HAROLD. OUR NEXT PRESENTATION IS THE BUFFINGTON COMMUNITY SERVICE GRANTS. JOHNNY TSENG. >> YES, HI, GOOD MORNING, OR GOOD MID-MORNING, MAYOR, COUNCIL, AND CITY STAFF. I'VE HAD THE PRIVILEGE TO SERVE ON THE COMMUNITY RELATIONS COMMISSION AS CHAIR THIS FIRST YEAR, AND I WANT TO TAKE MY TIME WITH YOU TODAY TO JUST KIND OF SHARE WITH YOU OUR ACCOMPLISHMENTS, AS A COLLECTIVE, AND ALSO OUR MEANS IN ACHIEVING THOSE. BUT, FIRST, LET'S -- LET ME SHARE WITH YOU THE WHO THAT MAKES UP THIS COMMISSION. WE ARE A COMMISSION COMPOSED OF NINE COMMISSIONERS, AND I'M JUST REALLY ENCOURAGED IN MY EXPERIENCE AND OBSERVATION THAT -- THAT THE DIVERSITY OF THIS COMMISSION IN ETHNICITY AND PROFESSIONAL BACKGROUND HAS JUST PROVIDED SUCH A -- SUCH A SYNERGY AND I CAN ALSO SHARE WITH YOU THAT IT REALLY GIVES US WHEN WE ARE IN FRONT OF ORGANIZATIONS, IT REALLY GIVES A STANDING TO BOTH TO ENCOURAGE AND TO INQUIRE HOW THEIR BOARDS MIGHT BE MORE DIVERSE ALSO. AND ALSO IT WOULD BE -- I WOULD BE REMISS TO NOT MENTION JUST E OUTSTANDING EFFORTS THAT THE PLANO CITY STAFF PROVIDES FOR US. WE'RE STRONGLY RELIANT ON THEM AND THEIR -- THEIR PREPAREDNESS AND PROFESSIONALISM REALLY SETS A TONE IN THE CULTURE OF THIS COMMISSION. SO AS PART OF -- THE FEDERAL HOUSING TAX CREDIT APPLICATION PROCESS, THE MUNICIPALITY PLAYS A ROLE IN THE AWARDING OF POINTS ON A DEVELOPER'S APPLICATION. AND THE -- AND HOW THAT -- AND HOW THE CITY PROVIDES IS A -- PROVIDES SUPPORT IS A RESOLUTION OF SUPPORT -- SORRY -- HOW THE CITY PROVIDES -- OH, I'M -- UM, LET ME THINK ABOUT THIS. SO, A DEVELOPER IS ABLE TO EARN AN ALLOCATION OF UP TO 17 POINTS UNDER APPLICATION IF THE LOCAL GOVERNMENT PROVIDES A RESOLUTION SUPPORT. AND THE CITY OF PLANO HAS, UM, ENTRUSTED THE COMMUNITY RELATIONS COMMISSION WITH THIS RESPONSIBILITY TO RECOMMEND WHETHER WE PROVIDE THAT RESOLUTION OR NOT. AND AS A PART OF THAT PROCESS, WE REFINE THE EVALUATION TOOLS TO MAKE THIS PROCESS MORE TRANSPARENT, AND WE CREATED -- SINCE THIS IS THE SECOND YEAR THAT THE COMMUNITY RELATIONS COMMISSION HAS BEEN A PART OF THIS PROCESS, THE POWERPOINT PROVIDED -- PROVIDED POWERPOINT TRAINING FOR THE COMMISSIONERS FOR THIS NEW ROLE. AND, LASTLY, FOR THIS CURRENT 22 YEAR, WE REVIEWED THREE APPLICATIONS AND WE PROVIDED RECOMMENDATIONS FOR TWO RESOLUTIONS OF SUPPORT AND ONE RESOLUTION OF NO OBJECTION. AND ANOTHER BIG KEY RESPONSIBILITY OF OUR COMMISSION IS TO PROVIDE RECOMMENDATIONS ON THE CONSOLIDATED GRANT APPLICATION PROCESS. FOR THE 2022 CONSOLIDATION GRANT YEAR, WE HAVE UPDATED GRANT APPLICATIONS AND CHANGED THE MINIMUM APPLICATION SCORE TO BE CONSIDER FOR FUNDING FROM 70, UPON 5, AND REVIEWED 23 APPLICATIONS REQUESTING $1,294,200 IN FUNDING AND A KEY OBJECTIVE THAT THIS COMMISSION PROVIDES IS THAT WE -- WE ARE THE CONDUIT FOR THE APPLICANTS. AND WE -- WE HELP YOU GUYS, OBVIOUSLY, TO, UM, TO SELECT THE MOST -- THE ORGANIZATIONS THAT PROVIDE THE MOST EFFICIENT SERVICES, T ALSO THAT PROVIDE A UNIQUE UNMET NEED WITHIN THE CITY. SO THIS COMMISSION IS VERY COGNIZANT THAT RESOURCES ARE SCARCE, ESPECIALLY IN THIS ENVIRONMENT OF INFLATION, AND SO WE SEE OUR ROLES AS PROVIDING THE -- THE EFFICIENT SELECTION OF THE NON-PROFIT ORGANIZATIONS THAT DO THE ESSENTIAL WORK IN OUR COMMUNITY. FOR THIS GRANT SEASON WE AWARDEG FOUR AGENCIES FOR THE CDBG HOME FEDERAL GRANT FUNDS AND ALSO 18 AGENCIES FOR THE BUFFINGTON COMMUNITY SERVICE GRANT FUNDS. AND THOSE RECOMMENDATIONS WERE PREVIOUSLY DISTRIBUTED TO YOU. THIS NEXT SLIDE IS REALLY JUST TO KIND OF HIGHLIGHT ONE OF THE CHALLENGES THAT WE'VE COME ACROSS, AND ON THE -- ON THE LEFT CHART, YOU WILL SEE THE PERCENTAGE BREAKDOWNS OF THE APP. CATEGORIZED AS PROGRAM SUPPORT APPLICATIONS AND SITE IMPROVEMENT HOUSING APPLICATIONS. AND THEN ON THE RIGHT CHART, YOU WILL SEE THE AVAILABLE FUNDS BROKEN DOWN UNDER THOSE SAME TWO CATEGORIES. AS YOU WILL SEE, THERE'S A MISMATCH OF WHAT WE HAVE IN AVAILABLE FUNDS, AND THE REQUESTED SUBMISSION OF FUNDS. AND A KEY -- A KEY REASONING FOR A LOT OF THIS MISMATCH IS -- IS NOT SO MUCH IT'S RED TAPE ON THE MUNICIPAL LEVEL -- IT'S MORE, UM, FEDERAL REQUIREMENTS ON A USAGE OF FUNDS. AND SO WE'VE HAD OVER THE YEARS, INCLUSIVE THIS YEAR, WE'VE HAD A LACK OF AGENCIES COMING TO THE -- COMING TO THE CITY OF PLANO FOR REQUESTS ON THE SITE IMPROVEMENT AND HOUSING AVAILABLE FUNDING. AND THEN HERE IS A SLIDE ON THE -- OUR CONSOLIDATED GRANT APPLICATION GUIDELINES AND LAYERED WITHIN THESE REQUIREMENTS IS OUR APPLICATION, WHICH INCLUDES 35 QUESTIONS AND EACH YEAR THE COMPOSITION -- EACH YEAR THE COMMISSION LOOKS AT HOW WE CAN BETTER REFINE THE QUESTIONS ON THESE QUESTIONNAIRES, AND ALSO WHERE WE'RE COMING FROM -- THE SENSIBILITIES OF THE AVERAGE PLANO RESIDENT. WHO DOESN'T WANT TO BE BOGGLED DOWN WITH, UM, NEEDLESS BUREAUCRACY. BUT, AT THE SAME TIME, I MEAN, SERVING ON THE COMMISSION, WE FEEL LIKE ONE OF THE PURPOSE OF WHAT WE'RE TRYING TO DO IS TO SEPARATE -- MAKE THE DISTINCTION FROM THE ORGANIZATION SIDE -- DO A VERY EFFICIENT SERVICE FOR THE COMMUNITY, AND ALSO THE ORGANIZATIONS THAT PROVIDE A UNIQUE NEED. SO JUST TO SHARE WITH YOU WE DO -- WE DO CONSIDER -- EVERY YEAR WE LOOK AT THE QUESTIONS, THE 35 QUESTIONS THIS YEAR, AND WE WILL LOOK AT WHETHER THESE QUESTIONS ARE NECESSARY. AND A LOT OF TIMES THE WEIGHING IS DILIGENCE, WHETHER WE WANT THAT INFORMATION FOR DILIGENCE PURPOSES, BUT AT THE SAME TIME, WE DO REALLY, UM, RECOGNIZE THAT THE TIME OF THESE ORGANIZATIONS ARE LUABLE. AND SO WE -- WE DO KEEP THAT UNDER CONSIDERATION. ANOTHER HIGHLIGHT -- INSIGHT THAT I WANT TO SHARE WITH YOU -- IS THAT OUR SCORING MECHANISM IS SUCH THAT WE -- THERE'S A 100-POINT SCALE. 55 POINTS ARE AWARDED JUST ON THE WRITTEN APPLICATION WITH ANOTHER 30 POINTS AWARDED ON TE QUALITY OF THE PUBLIC HEARING BY THE ORGANIZATION. AND THEN THE REMAINING 15 POINTS ARE PROVIDED BY THE CITY STAFF EVALUATION. AND BASED ON THAT SCORING MECHANISM, WE TARGET ON THAT SLIDE THAT YOU WILL SEE -- BASED ON THE SCORE, WE WILL TARGET THE PERCENTAGE OF FUNDING REQUEST, BUT HISTORICALLY WE HAVEN'T BEEN ABLE TO FUND TYPICALLY THE FOUR REQUESTED AMOUNTS OF THE ORGANIZATIONS. AND IN ANY CASES WHERE OUR -- OUR AVAILABLE FUNDING IS LESS THAN THE TARGET SCORING, THEN WE WILL PRO-RATE DOWN BASED ON THE WEIGHTING. THIS SLIDE IS SOMETHING THAT YOU PROBABLY HAVE SEEN PRIOR YEARS, BUT I JUST WANTED TO SHA WITH YOU THE HISTORY OF THE BUFFINGTON COMMUNITY SERVICE GRANT. THE COMMUNITY SERVICE GRANT WAS ESTABLISHED IN PLANO IN 1988 AND IT WAS RENAMED FOR ROBERT, OR BOB, BUFFINGTON FOR SERVICES TO THE COMMUNITY BACK IN 2006. AND CURRENTLY WE ARE FUNDED AT $581,340 ON A BASIS OF $2 PER CAPITA. AND WE RECOGNIZE THAT RESOURCES ARE ALWAYS CONSTRAINED, AND SOMETHING IS THAT IS VERY -- I WANT TO SHARE WITH YOU ABOUT THE COMMISSIONERS ON -- ON OUR COMMISSION IS THAT WE ARE VERY COGNIZANT THAT A WAY TO MAKE OUR IMPACT AS A CONDUIT OF THE ORGANIZATIONS THAT PROVIDE THE SERVICES IN THE SAME CITY DOLLARS -- A WAY THAT WE CAN REALLY, UM, MAKE THE DOLLARS TO GO FURTHER IS TO REFINE OUR PROCESS AND TO PICK THOSE ORGANIZATIONS THAT CAN STRETCH THE DOLLAR. SO WE DON'T SEE QUITE A MILLION DOLLARS IN GRANT PROCEEDS BEING EQUAL TO ANOTHER MILLION. IT'S REALLY DEPENDENT ON THE ORGANIZATION MIX, THAT THE CITY OF PLANO DECIDES TO FUND. ALSO IH THE BCSG REQUIREMENTS AND THESE ARE JUST KIND OF TO LET YOU KNOW, TO HIGHLIGHT THAT THESE FUNDS ARE ONLY PROVIDED FOR PUBLIC SERVICE ACTIVITIES DIRECTLY TO PLANO RESIDENTS, WITH SPECIAL CONSIDERATION GIVEN TO THOSE AGENCIES OFFERING SHORT-TERM ECONOMIC ASSISTANCE OR CARE SERVICES, AND THOSE THAT OFFER IMMEDIATE RELIEF OF THE CRISIS IMPACTING THE FISCAL AND/OR THE MENTAL HEALTH OF PLANO RESIDENTS. AND, FURTHER, THERE IS A REQUIREMENT THAT IT MEETS THE HUD CONSOLIDATED GOALS. ALL RIGHT, WITH THAT, I THANK YOU FOR YOUR TIME AND I AM OPEN TO YOUR QUESTIONS. >> Mayor Muns: THANK YOU, JOHNNY, I APPRECIATE IT. COUNCILMAN GRADY. >> Grady: THANK YOU VERY MUCH. JUST A COUPLE OF THOUGHTS IS AS COUNCIL KNOWS, I HAVE PLACED IN THE LAST MEETING THAT WE HAD, THE CDBG AND HOME FUND ON THE FUTURE AGENDA WHEN WE'RE READY FOR THAT, SO I WOULD ENCOURAGE IF WE HAVE ANY QUESTIONS ON THAT PROJECT TO VOICE THEM TO THE CITY MANAGER SO THAT WE CAN GET THAT DISCUSSIO GOING ON CDBG AND HOME FUND USAGE. I WILL ADD TO THAT RIGHT NOW WHEN WE TALK ABOUT HOUSING TAX CREDITS AND AWARDING HOUSING TAX CREDITS THAT ONE OF THE MOST IMPORTANT THINGS THAT WE CAN DO AS AN AGENCY IS TO LOOK TO AX PLAY FOR A HOUSING TAX CREDIT IS THAT WHERE THEY ARE LOCATING THAT HOUSING TAX CREDIT. BECAUSE WHAT I HAVE SEEN IN THE PAST IS THAT WE WILL AWARD SOMETHING TO AN INDIVIDUAL FOR WHICH THE PROPERTY HAS -- IS NOT PREPARED FOR THE TYPE OF PROJECT THAT THEY'RE GOING TO PUT ON THE PROPERTY. THEY SPEND A GREAT DEAL OF MONEY GETTG AHITECTUR DRAWINGS, SURVEYING DONE, ETC., ONLY TO FIND OUT LATER THAT THEY CAN'T PUT WHAT THEY WOULD LIKE ON THAT PIECE OF PROPERTY. SO I WOULD ENCOURAGE US TO TAKE A LOOK AT THAT IN OUR DISCUSSION ITEMS. THE OTHER THING THAT I WOULD SUGGEST IN OUR DISCUSSION ITEMS, WHICH I WOULD LIKE TO ADD IS, UM, ARE WE APPROPRIATELY FUNDING THE BUFFINGTON COMMUNITY SERVICES GRANTS? RIGHT NOW, WE HAVE A $2-PER-CAPITA ON THAT, BUT THE NEEDS IN OUR COMMUNITY ARE GREATER IN THE NON-PROFITS THAT ARE IN OUR COMMUNIT ARE DOING EXCEPTIONAL WORK WITH THE LLARSHATHEY RECEIVE. THEY -- THEY CAN TAKE A DOLLAROR WOULD ENCOURAGE US TO REALLY LOOK AT WHAT THE BUFFINGTON COMMUNITY SERVICES GRANTS OFFER AND WHAT WE CAN OFFER TO THEM TO HELP SUPPORT AND MAYBE EXPAND WHAT THEIR OPERATIONS ARE DOING. SO I'M GOING TO ADD THAT TO THE AGENDA. >> AND, COUNCILMAN, I APPRECIATI THAT. AND I THINK THAT IT'S IMPORTANT FOR THE ORGANIZATION TO RECOGNIZE THAT, BUT FOR THESE AGENCIES PROVIDING THESE SERVICES THAT THE REQUEST COMES TO THE CITY TO DO THAT. , WE GREATLY APPRECIATE THE COMMISSION AND THE ALLOCATION OF THESE DOLLARS, BUT I DO THINK THAT IT'S ALSO APPROPRIATE, WE HAVEN'T HAD A HARD AND FAST RULE FOR HOW OFTEN WE REVIEWED THE ALLOCATION TO THE, UM, TO THE NON-PROFITS THROUGH THE BUFFINGTON SERVICE GRANT, BUT I DO THINK THAT IT WOULD BE PRUDENT FOR COUNCIL TO COME UP WITH A TIMELINE FOR REVIEWING THE APPLICATION AND WHEN THAT MIGHT NEED ADJUSTMENT KIND OF ON A GOING FORWARD BASIS. SO THAT WILL BE PART OF OUR DISCUSSION AS WE BRING THAT BACK AGENDA.AND POST THAT ON THE >> Mayor Muns: THANK YOU SO MUCH. >> THANK YOU. >> Mayor Muns: WE REALLY APPRECIATE IT. NEXT PRESENTATION OF CULTURAL ARTS COMMISSION REBECCA ANDERSON. >> GOOD MORNING, THANK YOU FOR HAVING US. I AM DELIGHTED TO BE HERE ON BEHALF OF THE ENTIRE CULTURAL ARTS COMMISSION. MOST OF WHOM ARE BEHIND ME THIS MORNING. I LOVE THIS PICTURE, BECAUSE IT SHOWS THAT WE HAVE A LOT OF FUN TOGETHER DOING THE WORK THAT WE DO. THAT WAS TAKEN ON OUR SATURDAY GRANTS REVIEW, WHICH IS A VERY LONG MEETING, BUT IT'S -- IT'S A MEETING WHERE WE GET TO HEAR THE WONDERFUL THINGS THAT ARE HAPPENING IN THE ARTS COMMUNITY AND EVALUATE THE INVESTMENT THAT YOU ARE ALL MAKING IN THOSE PROGRAMS. SO, I'M HERE ON BEHALF OF CHRIS DOWNS, FABIAN GORDON AND MISSY HOYT AND ELISA CLINE AND DIANE GOEBEL AND WE'RE ALSO THANKFUL FOR OUR COUNCIL AND STAFF LIAISONS AND MR. RICCIARDELLI MA THEMSELVES AVAILABLE TO US AND JENNIFER KNOX-WALKER IS AT EVERY MEETING AND SO WE'RE THANKFUL FOR THEIR SUPPORT AS WELL. AND JUST A LITTLE BIT ABOUT -- YOU KNOW, A REMINDER OF WHY WE DO WHAT WE DO -- IT'S TO MAKE THE CITY OF PLANO AN ARTS DESTINATION. IT IS AN ARTS DESTINATION, BUT WE WANT TO CONTINUE TO INVEST IN THAT AND WE WANT TO MAKE SURE THAT THE SURROUNDING COMMUNITIES SEE US AS THAT AND MAKE SURE THAT OUR OWN CITIZENS HAVE THE OPPORTUNITY TO ENGAGE WITH THE ARTS AND TO ENGAGE WITH THE BEAUTIFUL MULTICULTURAL PROGRAMS THAT ARE TAKING PLACE WITHIN THIS VERY DIVERSE COMMUNITY. AND SO SOME OF THE ACCOMPLISHMENTS FROM THIS PAST YEAR -- WHEN I SAT BEFORE YOU THIS TIME LAST YEAR, WE HAD BEEN OPERATING WITH A VACANCY ON THE COMMISSION FOR SOME NUMBER OF MONTHS. WE'VE SINCE ONBOARDED TWO COMMISSIONERS. WE WERE AT FULL STRENGTH FOR OUR GRANT REVIEW PROCESS THIS YEAR. AND OUR SUBCOMMITTEE HAS BEEN HARD AT WORK AND THEY HAVE DONE A TREMENDOUS AMOUNT OF BENCHMARKING, LOOKING AT DIFFERENT WAYS THAT WE CAN STRUCTURE THE PROGRAM TO PERHAPS PUT IN PLACE A CAP. THAT WORK IS STILL ONGOING, BUT THEY'VE MADE TREMENDOUS STRIDES THERE. WE'VE GOTTEN ALL OF THE GRANT AWARDEES UP ON THE PAYMENTS TO INCREASE OUR EFFICIENCY, LOOKING TO THE YEAR AHEAD AND WE WILL BE ONBOARDING TWO NEW COMMISSIONERS. MYSELF, AND CHRIS DOWNS WILL BE STEPPING DOWN. SO IT'S AN OPPORTUNITY FOR SOME NEW CITIZENS TO GET INVOLVED IN THIS EXCITING WORK. AND WE'RE GOING TO CONTINUE TO OPERATE WITH NEW EFFICIENCIES USING GOOGLE, TRAINING -- ALWAYS JUST CONTINUOUS IMPROVEMENT IS HAPPENING WITH THIS COMMISSION. SO, WE DO HAVE THREE TYPES OF ARTS GRANTS. THERE'S A SMALL ARTS GRANT. THIS IS APPROPRIATE FOR VERY, VERY SMALL ORGANIZATIONS, TEND TO BE EARLY IN THEIR OPERATIONS. IT'S A LITTLE BIT LESS RIGOROUS OF AN APPLICATION PROCESS, JUST EIGHT QUESTIONS. BUT STILL GIVES US AN OPPORTUNITY TO EVALUATE THE EFFECTIVENESS OF WHAT THEY ARE DOING. OH, AND I DO WANT TO MENTION THAT THERE'S SOME GREAT QUOTES ON THESE SLIDES THROUGHOUT, JUST SPEAKING TO THE BEAUTY OF THE ARTS AND THE TREMENDOUS VALUE THEY HAVE ON THE COMMUNITY. AND WE HAVE OUR MAJOR ARTS GRANTS AND OUR EVENT GRANTS AND THOSE ORGANIZATIONS RESPOND TO A TOTAL OF 20 QUESTIONS. IT'S A VERY RIGOROUS APPLICATION PROCESS. IT'S A VERY INVOLVED PROCESS TO READ AND SCORE THOSE APPLICATIONS. SO IN TERMS OF OUR FUNDING OVERVIEW, WE ARE RECOMMENDING AN INVESTMENT OF $1,342,394. JUST A LITTLE BIT OF HISTORY ON WHERE THIS COMMISSION IS FUNDED. L OCCUPANCY TAX. WE -- WE ARE WITHIN OUR RIGHTS TO RECOMMEND UP TO 15% OF THAT TAX BE INVESTED IN PROGRAMS LIKE THIS PER THE TAX CODE. HOWEVER, WE RECOGNIZE THAT THERE'S A NUMBER OF THINGS THAT YOU ALL NEED TO INVEST IN, THERE'S A NUMBER OF NEEDS AND DEMANDS ON THE CITY, SO WE HAVE ALWAYS OPERATED IN VERY CONSERVATIVE FASHION AND WE ARE RECOMMENDING THAT 6% BE ALLOCATED FOR THE COMING YEAR, WHICH IS RIGHT IN LINE WITH WHAT WE RECOMMENDED THIS PAST YEA AND THEN THE EVENTS GRANTS, THERE'S NO CAP ON THOSE, BUT WE'VE -- HISTORICALLY WE HAVE OPERATED IN THE 1% ALLOCATION RANGE AND WE'RE RECOMMENDING TO STAY AT THAT AS WELL. SO, THE SMALL AND MAJOR ARCH GRANTS, WE ARE RECOMMENDING $1 MILLION TO BE INVESTED FOR THOSE. THERE'S ONE SMALL ARTS GRANT APPLICANT FOR $1,600 FIGURE AND THEN THE REMAINING $998,000 GETS DIVVIED UP AMONGST THE OTHER APPLICANTS. A COUPLE OF NOTES ABOUT THIS -- THIS DOES TAKE US BACK TO A PRE-PANDEMIC AMOUNT SO WHEN MY PREDECESSOR STOOD UP BEFORE YOU THREE YEARS AGO WE ASKED FOR ONE MILLION DOLLARS. TWO YEARS AGO IN RECOGNITION OF THE IMPACTS OF COVID AND ALL OF THE RELATED CHALLENGES THEREOF WE ASKED FOR $800,000. THIS PAST YEAR WE ASKED FOR $1 MILLION, BUT IT WAS $800,000 COMING FROM THIS TAX, AND THEN $200,000 THAT WAS A BOLSTERING FROM THE AMERICAN RESCUE PLAN ACT. SO, THIS ONE MILLION DOLLARS KEEPS US ON PAR WITH WHAT WAS ASKED FOR LAST YEAR, IT DOES GET US BACK TO THAT PRE-PANDEMIC FIGURE. BUT I JUST WANTED TO MAKE THAT NOTE, YOU KNOW, THAT WE DON'T HAVE THAT $200,000 THIS YEAR BY THE ARPA SO IT WOULD BE FULLY FUNDED BY THIS TAX RATE. SO, THERE'S A LOT OF NUMBERS ON THIS SLIDE AND WE ARE NOT GOING TO GO OVER ALL OF THEM. YOU ALL HAVE RECEIVED A PACKET. IF YOU HAVE ANY QUESTIONS ABOUT THEM, KAREN IS HERE, I'M HERE, WE'RE HAPPY TO ANSWER QUESTIONS. BUT WHAT I WOULD LOVE TO DO IS TO TELL YOU A COUPLE QUICK QUICI REPRESENT. SO WE GET TO HEAR STORIES ABOUT A LITTLE GIRL WHO WAS BULLIED IN SCHOOL AND NEVER REALLY FELT LIKE SHE HAD A SENSE OF COMMUNITY UNTIL SHE FOUND HER LOVE OF THEATER. AND THROUGH THEATER, SHE FOUND A PLACE WHERE SHE BELONGED, SHE FOUND A PLACE WHERE SHE FELT CONFIDENT IN HER IDENTITY. AND GAINED A SENSE OF ACCEPTANCE. WE GET TO HEAR STORIES ABOUT IDS AND TEENS USING DANCE AND ORCHESTRA AND CHOIR ANDHEATER TOD DEPRESSION AND ANXIETY. AND SO THAT'S WHAT SOME OF THAT'S NUMBERS REPRESENT IS AN INVESTMENT IN THE KIDS OF OUR COMMUNITY THROUGH THE BEAUTIFUL PARTICIPATION OF THE ARTS AND WHAT THAT CAN DO FOR YOUR MENTAL HEALTH AND YOUR EMOTIONAL HEALTH. SOMETIMES ENTIRE FAMILIES WILL PARTICIPATE TOGETHER IN A COMMUNITY THEATER PERFORMANCE. AND SO THEY'RE GETTING OUT FROM BEHIND SCREENS AND THEY'RE SPENDING TIME TOGETHER, DOING BEAUTIFUL THINGS TOGETHER. THERE ARE CHILDREN AND TEENS IN OUR COMMUNITY WHO HAVE TREMENDOUS POTENTIAL, BUT THEY NEED SOME PRIVATE LESSONS TO BE ABLE TO GET TO THAT NEXT LEVEL IN THEIR ORCHESTRA SKILL OR BAND SKILLS AND THEY CAN'T AFFORD THOSE PRIVATE LESSONS. BUT THROUGH THESE ORGANIZATIONS THEY GAIN ACCESS TO SOME OF THOSE RESOURCES. THAT'S JUST A VALUE FOR THE PARTICIPANTS AND THE VALUE FOR OUR COMMUNITY AT LARGE IS ALSO OUTSTANDING IN THAT THESE ORGANIZATIONS ARE PUTTING ON PERFORMANCES THAT ARE AFFORDABLE AND ACCESSIBLE FOR OUR COMMUNITY TO PARTICIPATE, AND I THINK THAT'S REALLY IMPORTANT, ESPECIALLY KNOWING THAT WE HAVE A LOT OF SENIORS ON FIXED INCOME, FOR THEM TO BE ABLE TO GO TO A HIGH-QUALITY THEATER PERFORMANCE, A HIGH-QUALITY SYMPHONY PERFORMANCE RIGHT HERE IN PLANO -- THAT'S WHAT THIS MILLION DOLLARS REPRESENTS. SO I WANTED TO BE REALLY CLEAR ABOUT SOME OF THE STORIES BEHIND THIS $1.3 MILLION -- EXCUSE ME -- AND I DO WANT TO MAKE A NOTE ON THAT. SO HOW THIS BREAKS DOWN IS IF THESE ORGANIZATIONS RECEIVED ALL OF THE MONEY THAT THEY ASKED FOR, IT WOULD BE THAT $1,49000 THAT YOU SEE THERE, BUT THERE IS A SCORING PROCESS THAT'S APPLIED AS WE REVIEW THOSE GRANT APPLICATIONS. THAT TAKES THE NUMBER DOWN TO THE $1.3 MILLION THAT YOU SEE THERE. AND THEN WE FIT IT TO THAT CAP. AGAIN, WE'RE ONLY ASKING Y'ALL TO FUND THESE AT THE MILLION DOLLAR LEVEL. SO ONCE THAT MILLION DOLLAR CAP IS APPLIED, THAT'S WHERE THE NUMBERS ON THE FAR RIGHT COLUMN COME IN AS TO WHAT WE'RE ACTUALLY RECOMMENDING FOR EACH ORGANIZATION AT THE INDIVIDUAL LEVEL. AND THEN WE HAVE OUR SCIAL EVENTS GRANTS. AND, AGAIN, THE STORIES HERE ARE REALLY POWERFUL. I KNOW THAT MANY OF YOU GREW UP IN PLANO GOING TO THE PLANO BALLOON FESTIVAL AND NOW YOU HAVE THE OPPORTUNITY TO TAKE YOUR CHILDREN TO THAT. WE HAVE ASIA FEST, WE HAVE THE PLANO INTERNATIONAL FESTIVAL. THESE ARE SOME OF MY FAVORITE EVENTS AS A COMMUNITY MEMBER TO TAKE MY FAMILY TO. AND WE HAVE A COMEDY FESTIVAL THAT IS NEW AS OF THE PAST COUPLE OF YEARS. PLANO IS FUNNY. AND SO -- YOU KNOW, PROVERBS SAY THAT A MERRY HEART IS GOOD MEDICINE. AND WE HAVE THIS PHENOMENAL EVENT WITHIN THIS COMMUNITY TO HAVE PEOPLE LAUGH AND TO BRING JOY INTO THEIR LIVES. SO THESE ARE SOME OF THE EVENTS THAT WE ARE ASKING FOR YOU ALL TO CONTINUE TO INVEST IN. AND WITH THAT, I WANT TO CLOSE WITH THIS QUOTE, WHICH JUST REALLY SPEAKS TO THE FACT THAT HEALTHY COMMUNITIES ARE COMMUNITIES THAT HAVE A THRIVING ART INVESTMENT. AND SO I WOULD LOVE TO TAKE ANY QUESTIONS THAT YOU MAY HAVE. >> Mayor Muns: THANKS, REBECCA. COUNCILMAN GRADY. >> Grady: WHEN WE GET TO THIS RT IN O BUDTING, I ALWAYS HAVE COMMENTS OR QUESTIONS. AND THIS REALLY IS A COMMENT. A LOT OF PEOPLE WILL SAY WHY ARE WE INVESTING IN THE ARTS AND THEY LOOK AT STEM PROJECTS AND SAY WE REALLY NEED TO LOOK AT STEM, RATHER THAN WHAT I CALL STEAM, AND MANY PEOPLE CALL STEAM. AND HERE'S THE REASON WHY -- BACK IN THE EARLY-TO-MID 1960s THERE WERE ARTISTS AND DESIGNERS AND PLAYWRIGHTS AND OTHER INDIVIDUALS THAT WERE DESIGNING A PROGRAM CALLED "STAR TREK" AND ON "STAR TREK," THE CAPTAIN WAS REIVININFORMATION OFF OF A PAD THAT HE COULD TOUCH WITH HIS FINGER OR TALK TO. AND IT WAS WAY BEYOND WHAT THE SCOPE OF COMPUTERS WERE DURING THE DAY. TODAY WE CALL THOSE iPADS OR TABLETS. THEY EXIST. BUT IT WAS -- IT WAS THAT DESIGN THAT PUSHED THE SCIENCE. AND TO ADD A LITTLE BIT TO THAT, THE -- A LOT OF THE ARTS THAT TAKE PLACE TODAY IN -- IN DESIGNING AND ENGINEERING WHEN I WAS AT EDS AND WE WERE HIRING COMPUTER SCIENTISTS, WHICHERE VERYARD TO FIND IN THE 1970s AND THE 1980s, WHAT WE FOUND AS THE BEST COMPUTER SCIENTISTS, THE BEST CODERS, WERE MUSICIANS. AND THE REASON WHY IS BECAUSE THEY WERE USED TO REPEATS, THEY WERE USED TO PATTERNS. AND SO WHEN WE WROTE CODE, WE WERE ALWAYS OPERATIN IN PATTERNS. AND WHAT WE CALL LOOPS, WHICH WERE REALLY REPEATS IN MUSIC. THEY WERE THE BEST WHAT I WOULD CALL BEHIND-THE-SCENE PROGRAMMERS, THE BEST USER INTERFACE PROGRAMMERS WERE THE ONES THAT WERE AIS, BECAUSE THEY KNEW HOW THE HUMAN BEING OPERATED WITH THE SCREEN THAT WAS IN FRONT OF THEM. AND SO THAT'S WHY WE BECAME USED TO BEING USING ICONS AND THE SCREENS THAT LOOK TODAY THE WAY THEY LOOK TODAY IS NOT BECAUSE OF A STRAIGHT COMPUTER SCIENTIST WHO HAD A GREAT MATH BACKGROUND -- IT WAS A GREAT COMPUTER SCIENTIST THAT HAD AN ART BACKGROUND. SO I ENCOURAGE US TO CONTINUE TR COMMUNITY. THANK YOU. >> Mayor Muns: THANK YOU. COUNCIL MEMBER HOLMER. >> Holmer: THANK YOU, REBECCA, FOR YOUR PSENTATIONND I WT TO THANK EVERYONE ON THE CULTURAL ARTS COMMISSION FOR YOUR SERVICE TO THE COMMUNITY. IT'S REALLY IMPORTANT. REBECCA, THANK YOU FOR YOUR LEADERSHIP. I KNOW THAT YOU STUCK AROUND BECAUSE WE NEEDED THAT CONTINUITY AND THE GROUP GOT A GREAT TEAM TO TAKE OVER IN YOUR -- IN YOUR ABSENCE. BUT I JUST WANTED TO THANK YOU FOR ALL THAT YOU GUYS DO, THE ARTS ARE NEAR AND DEAR TO MY HEART IN PLANO. AND I THINK THAT IT'S KIND OF A SECRET, I DON'T THINK THAT A LOT OF PEOPLE REALIZE HOW MANY AAZING OPPORTUNITIES WE HAVE TO EXRIENCEHE ARTS IN PLANO. SO THANK YOU FOR ALL THAT YOU DO. >> WELL, THANK YOU. AND I DO WANT TO ADD THAT WE GET A LOT OF FOLKS FROM FRISCO AND MCKINNEY AND FOR THESE EVENTS AND THEY SPEND MONEY AT OUR RESTAURANTS AND SOMETIMES STAY AT OUR HOTELS SO LET'S NOT FORGET THAT ECONOMIC IMPACT AS WELL. >> Mayor Muns: YES. >> I WAS GOING TO MAKE A QUICK COMMENT REBECCA. I DON'T THINK HOW LONG IT'S BEEN, THE PAST TWO OR THREE YEARS, THAT I HAD THE PRIVILEGE TO BE A LIAISON TO THE CULTURAL ARTS COMMISSION AND IT'S BN A WONDERFUL THING TO WORK WITH YOU AND THANK YOU FOR YOUR TENURE. >> THANK YOU ALL FOR THE OPPORTUNITY TO BE HERE TODAY AND FOR THIS OPPORTUNITY TO SERVE. APPRECIATE IT. >> Mayor Muns: THANK YOU SO MUCH REBECCA. AND THE COMMISSION. >> YES, THE WHOLE COMMISSION. >> Mayor Muns: ABSOLUTELY. [Laughter]. >> SORRY, Y'ALL. >> Mayor Muns: WE'RE GOING TO TAKE A RECESS AND RETURN IN FIVE TO SEVEN MINUTES. SO, THANK YOU. [RECESS] >> Mayor Muns: CITY COUNCIL IS NOW RECONVENED IN OPEN SESSION. AND WE WILL MOVE ON TO THE OPERATING BUDGET. AD VALOREM TAX BASE. >> I HAVE TO TELL THAT YOU THIS SECTION WAS PREPARED BEFORE Y'ALL DECIDED BASICALLY TO GO TO THE NO NEW TAX RATE. ALSO, I WAS PLANNING ON GIVING Y'ALL NEW NUMBERS FROM DENTON, CENTRAL APPRAISAL DISTRICT, WHICH AS OF YET WE N HAVE. I'M HOPING -- MAYBE BY THE AUGUST 22ND MEETING THAT WE WILL. DID YOU WANT TO SAY SOMETHING? >> THAT WAS JUST MY EFFORT TO SPEED UP THE MEETING. [Laughter]. >> OKAY. SO BASICALLY WE'RE JUST GOING TO SPEED THIS ALONG. YOU HAVE SEEN MOST OF THESE CHARTS AND WE'RE AT $51.9 BILLION AND YOUR ROLE NOW CONSTITUTES 51% FROM COMMERCIAL, 49% FROM RESIDENTIAL. THE TOTAL COMING ONLINE INCLUDING NEW GROWTH IS $4.2 BILLION. SINCE WE'RE GOING DOWN TO THE AVERAGE HOMESTEADED TAX VALUE -- NOW, THIS IS A RESIDENCE THAT HAS AN AVERAGE -- I MEAN, A HOMESTEAD VALUE ON IT. THEIR AVERAGE TAXABLE VALUABLE IS GOING TO GO FROM $315,330 TO $338 AND $499, SO ANYWAY IT'S A CHANGE OF $23,000. YOU GO DOWN TO THE 4 TO 1.76 WHICH IS THE NO NEW REVENUE RATE SO WE'RE GOING TO BE REDUCING THE TAX RATE BY 2.89 CENTS. EVEN THOUGH WE'RE DOING THAT, THEY'RE STILL GOING TO HAVE A $6 INCREASE, WHICH IS NOT VERY BAD, CONSIDERING THAT OUR HOME VALUES HAVE REALLY GONE THROUGH THE ROOF HERE. I WILL UPDATE THIS CHART. SO YOUR BLUE AND YOUR ORANGE LINE WILL BE MATCHING AT 41.76. AND I DO WANT TO REITERATE THIS -- WHEN WE HAD THE BOND REFERENDUM, WE ALWAYS HAVE TO -- WE PUT IN ALL OF THE PUBLICATIONS, HEY, IF EVERYTHING PASSES WE ARE GOING TO BE BRINGING ON $364 MILLION OF DEBT. WE'RE NOT PLANNING ON HAVING THE TAX RATE INCREASE, BUT JUST IN CASE WE DO LET THEM KNOW. OF COURSE, WE'RE NOT GOING TO HAVE ONE, BUT WHAT WE ARE DOING EVERY SINGLE YEAR IS PUTTING A LITTLE BIT MORE ON THE DEBT SIDE TO PAY FOR ALL OF THE DEBT COMING ON. SO THIS YEAR WE WENT ON THE DEBT RATE FROM 11.35 CENTS TO 11.05. SO $780,000. AND NEXT YEAR WE HAVE A .25 CENT INCREASE THAT WILL GO OVER TO DEBT. AND THEN IN THE FOURTH AND FINAL YEAR, WHICH IS 2024-2025, IT GOES UP TO 12 C CENTS AND, OF COURSE, THESE ARE PROJECTIONS AT THIS MOMENT. ALSO IN 2024-2025, YOU WILL BE HAVING ANOTHER BOND REFER END U78, I THINK IT'S -- REFERENDUM, I THINK THAT IT'S IN MAY 2025, BUT WE WILL BE STARTING ON THE PROGRAM NEXT SEPTEMBER. WE JUST ADDED KEY DATES ON THE PROGRAM, JUST TODAY WE ADDED PUBLIC HEARING AND I NEED TO UPDATE THIS, IT WILL BE A BUDGET AND THE CIP AND THE TAX RATE AND, OF COURSE, Y'ALL WERE SCHEDULED TO SET THE TAX RATE AND WE'LL HAVE A PUBLIC HEARING ON THE TAX RATE SEPTEMBER 12TH. AND THEN WE BEGIN AGAIN ON OCTOBER 1ST. LET'S TALK ABOUT SALES TAX. >> KAREN, BEFORE WE GO TO SALES TAX, MAYOR AND COUNCIL, ONE OF THE THINGS THAT CONCERNSE IS THE SUSTAINABILITY OF THE NO NEW REVENUE RATE. I HAVE EXPRESSED I THINK TO EACH OF YOU INDIVIDUALLY AND COLLECTIVELY THAT MY BELIEF IS THAT THE NO NEW REVENUE RATE IS NOT SUSTAINABLE FOR AN EXTENDED AMOUNT OF TIME WITHOUT IMPACT ON INFRASTRUCTURE. WE RECOGNIZE THAT WE ALWAYS WANT TO BE VERY PRUDENT ABOUT OUR EXPENDITURES, BUT OVER TIME WE KNOW THAT WE'RE AN AGING COMMUNITY, WE KNOW THAT OUR SERVICE LEVELS ARE BEING REQUESTED HIGHER AND HIGHER BY OUR CITENS AND THAT NO NEW REVENUE RATE OVER TIME, WHILE WE CAN ACHIEVE IT FOR PERIODS OF TIME OR YEARS, YOU KNOW, OVER AN EXTENDED PERIOD IT DOES BECOME A CHALLENGE IN MY BELIEF IS THAT IT'S NOT SUSTAINABLE OVER TIME. ONE OF THE THINGS THAT I'M GOING TO DO OVER THIS NEXT YEAR, COUNCIL, IN ORDER TO MAKE SURE THAT WE ALWAYS STAY ON TOP OF OUR TAX RATE AND OUR FINANCES IS TO BRING FORWARD A STUDY FOR COUNCIL TO PARTICIPATE IN THAT WOULD BE A FIVE-YEAR FISCAL STRATEGICLAN THAT WE START WORKING OFF OF TO MAKE SURE THAT WE DON'T END UP IN A SCENARIO WHERE THAT BILL COMES DUE AND IT SURPRISES COUNCIL OR THE COMMUNITY. AND I FEEL LIKE LOOKING AT OUR FINANCES FOR A LONGER PERIOD OF TIME IT WOULD GIVE US THAT STABILITY THAT COUNCIL WANTS, THAT THE COMMUNITY WANTS AND THAT THE STAFF CAN COUNT ON. AND I FEEL LIKE WE'RE AT THAT -- THAT AGE, THAT MATURITY, AND THAT SERVICE LEVEL THAT THIS IS -- THIS IS THE RIGHT TIME TO START LOOKING AT A STUDY LIKE THAT. SO I WILL BE BRINGING BACK A CONSULTANT TO HELP ASSIST US WITH THAT. AND SO I JUST WANTED TO MENTION TO YOU ALL THAT THERE'S THE NO NEW REVENUE RATE THIS YEAR AND I FEEL THIS IS THE RIGHT TIME TO BRING BACK A LITTLE BIT LONGER-TERM STUDY. AND THE FEEDBACK THAT I HAVE GOTTEN FROM COUNCIL MEMBERS IS I THINK THAT WOULD MEET A LOT OF THE NEEDS AND DESIRES OF COUNCIL AS WELL, TO MAKE SURE THAT WE'RE LOOKING AT NOT JUST THE IMMEDIATE TERM BUT MID-TERM AND A LITTLE BIT LONGER TERM. SO I WANTED TO JUST MAKE MENTION OF THAT AS WELL. SO, KAREN, THANK YOU. >> OKAY, OKAY, LET'S DISCUSS SALES TAX. AS Y'ALL KNOW THAT WE ARE UNDER SALE TAX CAP POLICY. IT STARTED BACK IN 2008. THIS YEAR WHAT WE'VE DONE THOUGH IS THAT WE ADDED AN INFLATIONARY RATE. WE TAKE THE THREE-YEAR AVERAGE, WE HAVE TO NAV OUT AUDIT ADJUSTMENTS THOUGH AND WE ADD TO THAT A 7%, OR WE'RE DOING THAT THIS YEAR BECAUSE INFLATION IS RUNNING REALLY HIGH. AND LET'S TAKE A LOOK -- OH, ON OUR SALES TAX CAP POLICY, WEE HAVE DONE A LOT OF VERY GOOD INITIATIVES WITH THIS OVER THE YEARS. WE HAVE PROVIDED -- Y'ALL PROVIDED AN ADDITIONAL $24.9 MILLION TO THE CAPITAL MAINTENANCE FUND AND $6.8 MILLION TO ECONOMIC DEVELOPMENT. Y'ALL HAVE BOUGHT LAND FOR THE FIRE TRAINING CENTER AND POLICE SUB-STATION. WE HAVE BUILT A FACILITY CONSTRUCTION. ANYWAY, IT IS VERY MUCH A REALLY GOOD POLICY THAT WE'VE HAD AND A LOT OF CITIES CALL US -- REGARDING THE POLICY -- AND THEY ARE SWITCHING OVER TO IT IN THEIR OWN CITY. OKAY, HERE'S A LOOK -- WHAT IS INCLUDED IN YOUR BUDGET THAT HE PRESENTED JULY 27TH. SALES TAX AT THAT TIME WAS PROJECTED TO BE $104 MILLION. SINCE WE RECEIVED THAT NEW SALES TAX CHECK, IT CAME OUT AT 10:00 THIS LAST WEDNESDAY, THE OTHER DAY, WE HAVE MOVED THAT PROJECTION UP TO $105 MILLION, OKAY, WHICH IS YOUR AVERAGE FOR NEXT YEAR AS WE HAD MENTIONED -- YOU'RE ON A THREE-YEAR PROJECTION, PLUS 7%. WE DO HAVE TO NET OUT AUDIT ADJUSTMENTS AND AUDIT ADJUSTMENTS ARE ONE-TIME REVENUES THAT COME IN. SO WE NET THOSE OF YOUR POLICY. ANYWAY, WITHIN THAT $1.5 MILLION THAT WE RECEIVED THE OTHER DAY, YOU DID HAVE NEARLY A $500,000 AUDIT ADJUSTMENT. SO THIS IS WHAT WE'RE GOING UP TO. AND JUST LOOK AT THE PERCENTAGE CHANGES FROM EACH YEAR AND YOU WILL SEE BACK IN THE PANDEMIC YEARS THAT WE WENT DOWN 1.7 AND LAST YEAR IT STARTED COMING BACK UP, 6.7, AND FOR THIS YEAR WE'RE EXPECTING NEARLY A 13% INCREASE IN OUR SALES TAX. THIS IS A LOOK AT HOW MUCH YOU HAVE COMING IN RETAIL VERSUS NON-RETAIL. SO WE STILL -- WE'VE BEEN LIKES FOR QUITE A WHILE AND THE MAJORITY OF YOUR SALES TAX IS COMING IN FROM THE NON-RETAIL OR YOUR BUSINESS-TO-BUSINESS SALES TAX. SO WE'RE AT 63%. THIS YEAR WE'RE RUNNING ABOUT 37% ON THE RETAIL SIDE. I WILL CAUTION EVERYBODY ONCE -- LIKE, WHEN AN ECONOMIC DOWNTURN COMES IN, THE BUSINESS-TO-BUSINESS IS THE ONE THAT COLLAPSES RAPIDLY. THE RETAIL STAYS PRETTY SOLID OR PRETTY STABLE, BECAUSE THERE'S STILL GOING TO BE SHOPPING OUT THERE FOR NECESSITIES. SO, JUST WANT TO LET Y'ALL KNOW. THIS IS A LOOK AT YOUR MAJOR INDUSTRIES. GENERAL MERCHANDISE IS THE TOP ONE. FOLLOWED BY NON-STORE RETAILERS. THEN FOLLOWED BY FOOD AND BEVERAGE SALES. THE NON-STORE RETAILERS ARE THINGS LIKE AMAN, THE THINGS THAT REALLY DON'T HAVE A BUILDING OKAY. SO, THAT'S YOUR SECOND LARGEST ONE. THIS IS A LOOK AT THE NON-RETAIL INDUSTRIES. YOUR NUMBER ONE IS GOING TO BE PROFESSIONAL AND OTHER SERVICES. YOUR NUMBER TWO IS TELECOM AND INFORMATION SERVICES. AND THEN NUMBER THREE IS YOUR HOTEL AND FOOD SERVICES. SALES TAXPAYER CAPITA. OUR CONSULTANT THAT WE GO THROUG LIS McLEA HAS COME UP WITH ALL OF THESE FANCY CHARTS. TO MAKE A LONG STORY SHORT, THE REASON THAT I'M SHOWING YOU THIS IS THAT FOR PLANO WE'RE AT $359.56, AND THE AVERAGE ACROSS THE STATE IS $212. SO WE FAR EXCEED THAT. WHAT ALL GOES INTO THAT FIGURE THOUGH OF COURSE IS PER YOUR CAPITA IS THAT WE DO -- OUR CITIZENS MAKE A HIGHER AVERAGE EARNING OF LIVING, AND THEN ALSO OUR BUSINS--BUSINS I SO HIGH TOO. SO THAT'S WHAT HAS US BEING AT THAT 359, AND IT'S A LOT MORE THAN THE AVERAGE. >> Israelson: KAREN HOLD THAT SLIDE REAL QUICK. MAYOR AND COUNCIL, IF YOU LOOK AT 2019 TO 2020, THAT'S THE EXAMPLE OF THE VOLATILITY OF THIS REVENUE SOURCE. THAT THREE-EAR AVERAGE HELPS TO KEEP THAT GROWTH IN CHECK AS FAR AS WHAT WE'RE COUNTING ON YEAR-OVER-YEAR AS WE'RE SETTING OUR PROGRAMS AND SERVICES. THAT'S AN EXAMPLE OF WHAT COVID IMPACT AND THE SHUTDOWN OF A LOT OF THE ECONOMY HAPPENS. AND THIS IS A PERFECT EXAMPLE AS KAREN BROUGHT BACK IN THAT FISCAL YEAR, SHE SAID THIS REALLY SAVED US WHEN WE SAW THAT DOWNTURN. AND THAT'S A PERFECT EXAMPLE OF WHAT CAN HAPPEN IN A GIVEN YEAR OF HOW THIS REVENUE SOURCE CAN GREATLY IMPACT THE OPERATIONS OF THE CITY. SO, THAT IN AND OF ITSELF IS A GREAT -- A GREAT CHART TO SHOW US WHY WE WANT TO KEEP THAT SALES TAX POLICY AND THAT THREE-YEAR AVERAGE. >> OKAY, THERE'S BEEN A LOT OF TALK ABOUT DART. SO WE THOUGHT THAT WE'D INCLUDE THIS. WE GET A REPORT FROM DART EVERY NTH THAT SHOWS HOW MUCH THEY ARE COLLECTING ON THE SALES TAX SIDE. AND THIS IS WHAT THEY GAVE US AS OF THE LAST QUARTER. THEY HAVE $68 MILLION. JUST SHOWING YOU -- THIS IS SOMETHING THAT A LOT OF CITIES ACTUALLY CALL US ABOUT. AND I REALLY THOUGHT THAT THIS WOULD FALL OFF BECAUSE A LOT OF THE OTHER CITIES NOW ARE SELLING LIQUOR, BUT IT STAYED -- IT'S STAYING AT THAT PANDEMIC LEVEL. SO WE COLLECTED $1.9 MILLION LAST YEAR AND WE COLLECTED ANOTHER $9 MILLION. I DON'T KNOW WHAT TO TELL Y'ALL. [Laughter] ANYWAY, I HAVE GOT TO RESTATE SALES TAX IS VERY, VERY VOLATILE, OKAY. THAT, LIKE MARK MENTIONED, WE HAVE THAT THREE-YEAR AVERAGE. IT REALLY DOES SHIELD US. SO WE ARE NOT GOING UP AND DOWN, UP AND DOWN ON OUR PROJECTIONS. SO, BUT IT IS, OF COURSE, WE ARE LIMITED BY THAT A LITTLE BIT. THAT'S WHY WE ADDED THAT 7% INFLATIONARY RIGHT. WE ARE ALSO COMING UP AGAINST COMPETITION FROM SURROUNDING CITIES, ECONOMIC CONDITIONS, AUDIT ADJUSTMENTS. ONE YEAR AT THE LAST MINUTE WE HAD A $3 MILLION AUDIT ADJUSTMENT AND IT WAS NOT IN OUR FAVOR. AND THEN, OF COURSE, IN THE EXPANSION ON THE SALES TAX HOLIDAY, WE'LL HAVE THAT SALES TAX. OKAY, THIS IS A CHART THAT WE CAME UP WITH. THIS IS THE TYPICAL TAXPAYER IMPACT STATEMENT. THIS IS AT YOUR NO NEW REVENUE RATE AND I'M DOING IT RIGHT HERE K ABOUT THE WATER AND SEWER INCREASE AND WE'RE ABOUT TO TALK ABOUT THE SOLID WASTE INCREASE. AT THE END OF THE DAY, THIS IS A TYPICAL TAXPAYER. THE PROPERTY TAX WILL GO UP $6 ON AVERAGE. THEIR WATER CHARGES WILL GO UP 51 FOR THE YEAR, SEWER CHARGES, 47. WHEN YOU DIVIDE THAT OUT IT'S $8 A MONTH. WE'RE NOT GOING UP ON THE DRAINAGE FEE. I KNOW THAT MARK MENTIONED THE OTHER DAY AND WE GOT LASMINUTE NORTH TEXAS MUNICIPAL WATER DISTRICT IN AFTER WE HAD ALREADY SUBMITTED THE BUDGET. THEY HAD COME BACK TO US AND, IN FACT, LET ME -- WELL, YOU WILL PROBABLY WANT TO TALK ABOUT THIA CREDIT FROM THEM. THEY'RE NO LONGER GOING TO GIVE US THAT CREDIT. SO, THE UNUSED WATER -- I'LL SHOW YOU ANOTHER CHART -- WE WILL NOT BE GETTING THAT CREDIT NEXT YEAR. SO -- BUT WE'LL DISCUSS THAT HERE IN A MINUTE. DO YOU HAVE ANY QUESTIONS ON THIS CHART? THIS IS $134 FOR THE WHOLE YEAR. >> Iaelson: THIS IS ONE OF MY FAVORITE CHARTS, MAYOR AND COUNCIL. THIS REALLY KIND OF HELPS TO SHOW THE CITY PERSPECTIVE, AND I KNOW THAT EVERYBODY IN THE CITY HAS, YOU KNOW, OTHER TAXING ENTITIES AND OTHER ELEMENTS, BUT WHEN YOU START ADDING IN THE PROPERTY TAX WITH THE UTILITY FEES, I THINK THAT THIS KIND OF SHOWS THE OVERALL IMPACT TO THE HOUSEHOLD AND AS WE WERE TALKING ABOUT, YOU KNOW, WHERE THE BILLS GET PAID FROM -- THIS I THINK IS INDICATIVE OF WHAT ALL OF THE CHARGES LOOK LIKE. AND SO I COMMEND KAREN. I THINK THAT THIS WAS A GOOD FIND WHERE SHE FOUND THIS AND MADE IT EVEN BETTER FOR PLANO'S PURPOSES, SO I ARECIATE THIS CHART A LOT. >> YEAH, IF YOU DIVIDE THAT $134, AND I MEAN, I HATE THAT ANY INCREASE IS GOING TO GOING ON BUT IT'S $11 FOR THE WHOLE YEAR, PER MONTH. BUT YOU'RE ABOUT TO HEAR ABOUT SEWER AND WATER AND SOLID WASTE. THESE ARE DIRECTLY IMPACTED BY NORTH TEXAS MUNICIPAL WATER DISTRICT. AND WE JUST DON'T HAVE ANY CONTROL. OKAY, LET'S TALK ABOUT WATER AND SEWER. DO YOU HAVE ANY QUESTIONS ABOUT WHAT I JUST SHOWED YOU? YES SIR? >> Mayor Muns: KAREN, THANK YOU VERY MUCH. I REALLY APPRECIATE THE CONVERSATION POINTS THAT YOU BROUGHT UP AND I WOULD LIKE TO ADD THIS POINT SOME EMPHASIS AS TO WHAT OUR CITY MANAGER SAID AS WELL. BECAUSE AS I LOOK AT IT FROM AN ECONOMIC STANDPOINT, I AGREE WITH WHAT THE CITY MANAGER SAID AND WHAT YOU HAVE BEEN SAYING THAT THE NO NEW TAX RATE -- OR NO NEW REVENUE RATE -- IS REALLY UNSUSTAINABLE FROM AN ECONOMIC MODELING STANDPOINT. IT'S GREAT TO OFFER THAT, BUT I GUESS THAT MY -- MY COMMENTS REALLY ARE STEERED TO OUR CITIZENS AND OUR COMMUNITY, TO HAVE THEM UNDERSTAND THAT WHEN WE TAKE A LOOK AT VERY -- AND WE SAW THIS IN YOUR CHARTING -- WE SAW THE APPRAISAL RATES THAT CERTAINLY HAVE GONE UP IN THE PAST DECADE AND THE APPRAISAL RATES HAVE DOUBLED AS FAR AS THE VALUE OF THE PROPERTIES. AND THAT'S A GOOD THING AND A BAD THING. I THINK THAT IT'S MADE PEOPLE MORE WEALTHY TO BE CANDID FROM AN ASSET STANDPOINT BUT IT AMPLIFIES INTO WHAT THEY SPEND EVERY SINGLE MONTH, WHETHER IT'S INRAE ON THEIR BUILDING OR'S ANYTHING ELSE, TO BE CANDID. SO EVEN THE INSURANCE PACKET THAT I RECEIVE EVERY YEAR AT MY HOUSE GOES UP BECAUSE THE VALUE OF MY HOUSE WENT UP. AND WOE TO THEM THAT DECIDE TO KEEP THE BASELINE THE SAME, BECAUSE IF YOU LOSE YOUR STRUCTURE, ABOUT HALF OF IT GETS REBUILT, AND THE OTHER HALF COMES OUT OF YOUR POCKET. SO IT'S A REAL DANGEROUS THING FOR OUR COMMUNITY TO LOOK AT. BUT THE THING THAT I LOOKED AT, NOT ONLY FROM THAT, BUT FROM THE -- IN THE PAST FOUR YEARS, EVEN THOUGH THE NO NEW REVUE RATE AS A VERNACULAR HAS ONLY BEEN IN PLAY FOR THE PAST YEAR AND A HALF OR SO, WE CAN SEE BY THE CHARTING THAT YOU PROVIDED THAT WE'VE BEEN HOLDING AT THE NO NEW REVENUERATE FOR THE PAST FOUR YEARS. THIS YEAR AND THE PAST THREE YEARS. AT THE SAME TIME, IF WE TAKE A LOOK AT SOME OF THE CONSTRUCTION INDEXES -- BECAUSE THE CITY IS A SERVICE INDUSTRY AND THE CITY IS A CONSTRUCTION INDUSTRY. THAT'S REALLY WHERE WE PLAY, AND SO WE PROVIDE SERVICES AND WE PROVIDE CONSTRUCTION, THAT CONSTRUCTION COULD BE ROADS OR SEWER LINES OR WATERINES OR STORM DRAINS, AND UNDERSTANDING THAT SOME OF THAT COMES OUT OF THE CIP AND OTHERS SUCH AS MANPOWER EQUIPMENT MATERIALS AND THOSE TYPES OF THINGS COME OUT OF THE GENERAL FUND. BUT I THINK THAT WHEN WE LOOK AT IT FROM THAT STANDPOINT AND WE SEE -- NOT THE CONSUMER PRICE INDEX, BUT THE CONSTRUCTION PRICE INDEX. SO, IF WE LOOK AT IT FROM MORTENSON'S CONSTRUCTION COST INDEX, WHAT WE REALLY SEE IS ABOUT A 6% ESCALATION OVER THE PAST DECADE,UTF W LOOK AT THE PAST YEAR AND THAT INDEX INDICATED THAT ALL MATERIALS USED IN CONSTRUCTION JUMPED ALMOST 20%. AND THOSE COSTS WE HAVE TO BUY. AND IF WE ARE PREPARED FOR DOING THAT, THEN THE ONLY CHANGE THAT WE HAVE IS THAT WE HAVE TO GO BACK TO THE EXPENSE SIDE OF THE LEDGER AND TO REMOVE PROGRAMS. IN ESSENCE, WE CAN'T BUY THOSE MATERIALS AND WE CAN'T PAY FOR THAT STAFF, AND WE HAVE TO REMOVE PROGRAMS AS -- AS THE ECONOMY MOVES FORWARD. IF YOU LOOK AT THE FEDERAL RESERVE BANKF ST. LOUIS AND EVERY FEDERAL RESERVE BANK HAS A SPECIAL INITIATIVE. IT HAPPENS TO BE THAT THE FEDERAL RESERVE BANK OF ST. LOUIS LOOKS AT THE HOUSING AND THE CONSTRUCTION INDUSTRY. THAT'S WHAT THEY'RE CHARGED WITH. THEY LOOK AT CONSTRUCTION COSTS AS WELL, AND THIS IS NOT RESIDENTIAL CONSTRUCTION, THIS IS COMMERCIAL CONSTRUCTION. AND THEIR INDEX FOR THIS YEAR JUMPED ALMOST 40% FOR MATERIALS OVERALL. SO IT'S A HUGE JUMP THAT WE'RE FACING AT THE SAME TIME THAT WE'RE SAYING OUR REVENUE IS GOING TO BE ABSOLUTELY FLAT. AND IF OUR REVENUE ARE FLAT AND IF WE WERE IN THE CONSUMER INDUSTRY RUNNING OF BUSINESS, WITH REVENUE BEING THE SAME EVERY SINGLE YEAR, AND THE COSTS OR THE EXPENSES FOR US WERE CONTINUING TO GROW EVERY SINGLE YEAR, WE KNOW AS BUSINESS PEOPLE WHAT WE WOULD NEED TO DO -- WE NEED TO REMOVE PEOPLE, WE NEED TO REMOVE PROJECTS, WE NEED TO REMOVE SERVICES, ALL OF THOSE TYPES OF THINGS NEED TO GO AWAY IN ESSENCE FOR US TO MAKE A BALANCED BUDGET OR PROVIDE IN THE COMMERCIAL WORLD A PROFIT, WHICH WE DON'T FROM A GOVERNMENTAL AGENCY. SO, THE CONCERN THAT I HAVE, ESPECIALLY WHEN OVER THEAST FEW YEA THA WE'VE HAD WHAT I WOULD CALL EXTRAORDINARY EVENTS THAT HAVE TAKEN PLACE, UM, IN ETIONZENS, NOT ONLY THE COVID EVENT BUT THE MONEY THAT CAME TO US FROM THE FEDERAL GOVERNMENT -- THAT -- THAT MASKED WHAT WE DO FROM A REVENUE STANDPOINT. IN ESSENCE, SOME OF THE PROJECTS THAT WE WOULD LIKE TO HAVE AND COULDN'T HAVE WITH THE NO NEW REVENUE RATE, WE WERE ABLE TO AFFORD BECAUSE WE HAD WHAT I CALLED ARTIFICIAL REVENUE COMING TO US FROM THE FEDERAL GOVERNMENT, AND WE WERE ABLE TO STRETCH THAT OVER A PERIOD OF TIME. IF WE WERE TO TAKE A LOOK, FOR R EXAMPLE THAT YOU GAVE, AND THE CHART SHOWED IT VERY WELL -- THE SALES TAX AND THE VOLATILITY IN SALES TAX LOOKS LIKE A FUN RIDE AT SIX FLAGS, BUT IT DOESN'T DO ANYTHING FOR US FROM A REVENUE STANDPOINT FOR THE CITY. WE CAN'T COUNT ON THAT. BUT WHAT WE HAVE SEEN AND AS WE MAKE DECISIONS AND AS WE MAKE CONCLUSIONS AS TO THE NO NEW REVENUE RATE WOULD BE GOOD THIS YEAR BECAUSE OF -- AND WE THROW ECONOMIC SITUATIONS INTO IT. THAT PEOPLE ARE STRUGGLING, THAT THE COST OF FOOD HAS GE UPND THE COST OF OTHER THINGS HAVE GONE UP -- AND WE HAVE DONE THAT FOR THE PAST FOUR YEARS OF PROVIDING REASONING AS TO WHY WE STAYED AT THE NO NEW REVENUE RATE. THE REASONING THAT WE HAVE TO LOOK AT IT INTO THE FUTURE IS BECAUSE THOSE PRODUCTS AND SERVICES -- THE PRODUCTS THAT WE BUY AS MATERIALS, AND THE SERVICES THAT WE PROVIDE THROUGH OUR PEOPLE, WILL NOT BE SUSTAINABLE UNDER A NO NEW REVENUE RATE -- SIMPLY WON'T. AND IF WE GET INTO A BUSTLING ECONOMY, WE'RE GOING TO FIND THAT THE NO NEW REVENUE RATE WILL NOT SUSTAIN THE STAFF THAT WE HE, IT WILL NOT SUSTAIN THE EQUIPMENT THAT WE HAVE AND WILL NOT SUSTAIN THE PROGRAMS THAT WE HAVE, AND WE'RE GOING TO HAVE TO LOOK VERY HARD INTO THE FUTURE -- NOT JUST TONIGHT, NOT NEXT WEEK -- WE NEED TO TAKE A LOOK INTO THE FUTURE AS TO WHAT WE REALLY NEED TO DO IN THIS CITY AND TO BE ABLE TO -- BE ABLE TO FUND THAT. AND TO BE ABLE TO EXPLAIN TO OUR CITIZENS THIS IS THE REASON THAT WE NEED TO DO THIS. AND IT'S NOT JUST BECAUSE WE WANT TO STICK AT A NO NEW REVENUE RATE. THAT TO ME FROM AN ECONOMICAL MODEL STANDPOINT WILL NOT SUSTAIN A CITY AS COSTS CONTINUE TO GO UP ANYWHERE BETWEEN 30% AND 40% EVERY SINGLE YEAR FOR CONSTRUCTION MATERIALS. SO, THAT'S THE CONCERN THAT I HAVE THAT I WANTED TO VOICE TO THE COUNCIL IS THAT WE DON'T HAVE A SUSTAINABLE MODEL. I UNDERSTAND THE REASONING THAT EVERYBODY WENT THROUGH THE THRASHES AND THE GROANS OF TRYING TO DISCOVER WHAT THE NO NEW REVENUE RATE IS WHICH IS REALLY AN INDICATOR TO SAY THIS IS WHAT WE WERE AT LAST YEAR AND THIS IS WHAT WE ARE AT THIS YEAR AND YOU AS CITIZENS CAN SEE HOW MUCH MORE MONEY THAT THE CITY IS GOING TO USEND WHAT THAT PERCENTAGE RATE IS, I UNDERSTAND THAT. BUT BEYOND THAT IT'S NOT A MODEL OF THAT'S WHERE YOU HAVE TO BE, SO I THINK THAT IT IS DAMAGING TO CITIES TO CONTINUE THAT -- THAT MOVEMENT FORWARD. AND I COMMEND THE CITY MANAGER FOR SAYING LET'S REALLY TAKE A HARD STAND AND LOOK AT THIS AS TO WHAT THIS CITY NEEDS, BECAUSE I CAN TELL YOU THAT EVEN THOUGH IN THE CIP THE ROADS ARE FUNDED OUT OF THAT, THEY'RE FUNDED OUT OF BONDS THAT WE HAVE TO PAY FOR FROM THE REVENUE THAT WE RECEIVE THROUGH AD VALOREM TAXES AND OTHER THINGS, AND WITHOUT THOSE TYPES OF THINGS, WE'RE GOING TO CONTUE TO HAVE MORE BUMPY STREETS WITH VERY LARGE HOLES IN THEM AND PEOPLE REPAIRING WHEELS AND AXLES AND SUSPENSION SYSTEMS AND THEY'RE NOT GOING TO LIKE THE ROADS, BUT IT'S ALL THAT WE CAN AFFORD. IT'S ALL THAT WE CAN AFFORD BECAUSE THERE'S THE NO NEW REVENUE RATE SO WE HAVE TO REDUCE THE EXPENSES SOMEWHERE. SO I WANTED TO ADD EXPENSES ON TO THAT. >> I JUST WANT TO COMMENT ON WHAT RICK GRADY SAID, DITTO, DITTO DITTO. I COMPLETELY AM ONBOARD BUT HE USES A LOT OF SOPHISTICATED WORDS -- [Laughter] AND I'M SO I ACTUALLY GAVE A PRESENTATION TO SOME YOUNG KIDS -- YOUNG FUTURE LEADERS IN OUR COMMUNITY. AND THEY SAY WELL, HOW COME PLANO IS ALWAYS FIXING ROADS. AND THE ONLY THING THAT I COULD THINK OF WAS TO SAY, WELL, YOU KNOW, HONEY, UM, WHEN YOU GET TO, LIKE 40 OR 50 YEARS OLD, YOU HAVE TO START THINKING ABOUT, YOU KNOW, A LITTLE TUCK HERE AND A LITTLE TUCK THERE. [Laughter] YOU KNOW, TO CONTINUE TO BE ATTRACTIVE TO THE PEOPLE WHO, YOU KNOW, WHO YOU MEET. WHEREAS, OUR NEIGHBORI CITIES WHEN THEY'RE LIKE IN THEIR 20s, ALL THEY HAVE TO DO IS TO FLAUNT THEMSELVES AND THEY CAN ATTRACT ANYBODY THAT THEY WANT. [Laughter] BUT FOR US OLDER CITIES WE HAVE TO KIND OF -- YOU KNOW, TO PLAY A BIT OF COSMETIC SURGERY. SO I THINK THAT IS REALLY IMPORTANT, BECAUSE WHAT WE REALLY WANT TO SEE -- I MEAN, I THINK THAT THE COUNCIL REALLY NEED TO START THINKING ABOUT IS WHAT IS OUR PRIORITY? IS OUR PRIORITY TO CONTINUE A TRACK WITH BUSINESSES, GOOD JOBS, GD EMPLOYMENT, YOUNGER FAMILIES TO COME INTO OUR CITY? OR IS IT WE JUST WANT TO BE A RETIREMENT COMMUNITY? SO, I THINK THAT THOSE ARE REALLY THINGS THAT WE NEED TO PUT INTO PRIORITY WHEN WE'RE DEALING WITH REVENUES. BECAUSE, YOU KNOW, LIKE RICK GRADY SAID, WE CANNOT HAVE ANY SUSTAINABILITY OF ATTRACTING MORE BUSINESSES, MORE GOOD PEOPLE, YOUR YOUNG PEOPLE, MORE BUSINESSES INTO OUR COMMUNITY WITHOUT, YOU KNOW, A LITTLE TUCK HERE AND A LITTLE TUCK THERE. SO, I -- I AM VERY CONCERNED. AND I -- I AM SO APPRECIATIVE THAT THAT IS BROUGHT UP, BECAUSE, YES, PRIORITY NEEDS TO BE SET, AND WE NEED TO FIGURE OUT IS IT JUST NO NEW REVENUE IS MORE IMPORTANT? OR THE FUTURE OF PLANO IS MORE IMPORTANT? >> CAN I MENTION SOMETHING REAL QUICK? I WANT TO JUST MENTION SOMETHING. MR. COUNCIL MEMBER GRADY, LET'S GO BACK TO YOUR POINT. SO SRY TO -- Y'ALL ARE TIRED OF MY HANDS. Y'ALL WEREN'T HERE BUT BACK IN 2010, THE NO NEW REVENUE RATE OR THE EFFECTIVE TAX RATE AT THAT TIME WAS 52.03, GO ALL THE WAY BACK TO 2010. WE CAPPED IT AT 48.86 CENTS. OVER TWO YEARS WE HAD TO REMOVE OVER $40 MILLION OUT OF THE BUDGET. WE HAD NOT ATTRITION, BUT WE HAD TO REMOVE 142 FULL-TIMERS. SO IT IS -- I MEAN, IT'S DEFINITELY A CHOICE. I KNOW THAT Y'ALL WEREN'T HE AND I KNOW THAT MARK WENT THROUGH IT AND WE WERE ALL ON THE SAME COMMITTEE WHERE WE HAD TO GO THROUGH THE DIFFERENT PROGRAMS AND SERVICES. SO IT'S JUST SOMETHING -- IF Y'ALL CHOOSE -- BECAUSE THIS IS -- Y'ALL'S CHOICE TO GO DOWN TO THE NO NEW REVENUE RATE. WELL, WHAT HAPPENS WHEN THE BOTTOM FALLS OUT OF THIS HOUSING MARKET AND NEXT YEAR YOUR NO NEW REVENUE RATE MIGHT BE 42.65. IT'S UP. SO IF YOU DON'T GO WITH THE NO NEW REVENUE RATE, THEN WE'RE IN THE PROCESS OF CUTTING AGAIN. I JUST WANTED TO MAKE THAT >> Grady:.RE >> Israelson: KAREN, CAN YOU MENTION THE DEPARTMENTS THAT TOOK THE BIGGEST HIT IN 2010. >> IT WAS BY FAR THE POLICE DEPARTMENT YES. IT WAS -- IT WAS AMAZING. THEY REALLY SAVED US ON ONE OF THE YEARS, THEY RE-DID A BUNCH OF STUFF AND WE HAD TO PUT SOME STUFF OFF. ALSO ANOTHER THING THAT HAPPENED THAT I REALLY NEVER WANT TO GO THROUGH AGAIN IS THAT AT THAT TIME THAT THEY DECIDED, WELL, WE'RE GOING TO STOP CONSTRUCTION ON SOME OF THESE PROJECTS,VE THOD REFERENDUM, WE'RE GOING TO STOP CONSTRUCTION. WELL, NORMALLY WHAT GOES INTO THE CIP, YOU'LL HAVE OPERATING EXPENDITURES THAT GO ALONG. BY DOING THAT, SOME OF OUR BUILDINGS DIDN'T GET BUILT FOR ANOTHER 10 YEARS. AND THE CONSTRUCTION COST HIS JUST GONE THROUGH THE ROOF. AND SO I HOPE THAT WE NEVER GET TO A SITUATION LIKE THAT AGAIN. MARK, DO YOU WANT TO MAKE COMMENTS THERE? >> WE HAVE STUFF TO GET THROUGH THIS AND I WANT TO DIVERT BACK AND WE HAVE A FEW MINUTES TO REVISIT THIS AND I THINK THAT OVERALL GENERAL THOUGHTS, BUT WE'VE GOT A TIME CRUNCH FOR A COUPLE OF COUNCIL MEMBERS THAT I WANT TO RESPECT. AND I THINK THAT EVERYBODY'S PERSPECTIVES ARE CRITICALLY IMPORTANT. BUT I WANT TO MAKE SURE THAT WE GET THROUGH SOME OF THIS AND WE DON'T GET TOO FAR ASTRAY FROM THAT AGENDA, SO RESPECTFULLY, IF WE COULD KIND OF GO BACK TO THAT WATER AND SEWER DISCUSSION. I THINK THAT IT WOULD ALLOW US TO MAKE SOME PROGRESS AND STAY ON TIME. BUT WE CAN REVISIT THAT TOWARDS THE END OF THINGS. >> Mayor Muns: COUNCILMAN SMITH. >> Smith: THANK YOU. AND WITH RESPECT TO YOUR COMMENTS THERE, I JUST WANT TO SAY SOMETHING THAT EVERYBODY KNOWS THAT WE COULD USE A LOT MORE RAIN. WE REALLY WISH WE HAD RAIN. BUT I WANT TO DO IS I WANT TO SEE IF I CAN CLEAR UP SOME OF THE DARK CLOUDS THAT HAVE BEEN TALKED ABOUT HERE. WE'RE MISSING SOMETHING VERY IMPORTANT. WE'RE MISSING -- I BELIEVE THAT IT'S AN HISTORIC MOMENT. TO MY KNOWLEDGE, AND COUNCILMAN GRADY PROBABLY WOULD KNOW IT, THAT THIS IS THE FIRST TIME THAT WE'VE EVER -- WE HAVEN'T YET BUT THAT WE'RE ON TRACK TO APT A TAX RATE LESS THAN WHAT WE PUBLISHED AS OUR PROPOSED RATE. THAT'S HISTORIC. AND THE ONLY WAY THAT WE DO THAI ENJOY A LOT OF THE COMMENTS THAT COUNCILMAN GRADY MADE, BUT THE BIGGEST REASON -- I THINK THAT ONE OF THE BIG REASONS THAT WE WERE ABLE TO DO THAT, YES, WE HAD EXTRA FUNDS AND THINGS COMING IN, BUT WE DIDN'T HAVE THE FINANCIAL MANAGEMENT AND THE LEADERSHIP STRUCTURE THAT WE HAVE, THIS WOULD NOT HAVE HAPPENED. SO, YES, THERE'S SOME THINGS THAT WE WILL LOOK AT DOWN THE ROAD, BUT LET'S TAKE A LOOK AT THGOOD THI THAT'S HAPPENING RIGHT NOW AS A RESULT OF A LOT OF THE WORK THAT YOU GUYS HAVE ALL PUT INTO IT. SO I APPRECIATE IT. >> Mayor Muns: THANK YOU. HOLD ON TO YOUR COMMENTS, SHELBY, I'LL COME TO YOU FIRST. BUT LET'S GO AHEAD AND FINISH KAREN'S PRESENTATION. >> ALL RIGHT, VERY GOOD. I'M ABOUT TO GET OUR CONSULTANTS UP HERE. DAN JACKSON HAS DONE OUR WATER AND SEWER RATE MODEL FOR A WHILE. WE WERE NOT PLANNING ON HAVING AN UPDATE UNTIL WE RECEIVED THE INFORMATION IN JUNE FROM THE DISTRICT. PREVIOUSLY THEY HAD SAID THAT THEY WERE GOING TO HAVE A 5% INCREASE ON WATER. NOW THEY'RE SAYING A 13% INCREASE ON WATER. ON THE SOLID WASTE, WE'LL GET ABBY UP HERE IN A MINUTE. PREVIOUSLY, THEY SAID NO INCREASE AND NOW THEY'RE GOING TO HAVE AN INCREASE. I'M GOING TO GO AHEAD AND GET STRAIGHT INTO -- DAN, COME ON U. AND HE WILL GO THROUGH THE PRESENTATION. AND THESE ARE THE RATES THAT ARE BEING PROPOSED. THEY WILL NOT GO INTO EFFECT UNTIL NOVEMBER 1ST, 2022. >> THANYOU, MAYOR AND MEMBERS OF THE COUNCIL. I AM DAN JACKSON, VICE PRESIDENT OF THE FINANCIAL SERVICES. I HAVE MR. DAN LANING HERE WITH ME AS WELL. WE HAD THE PRIVILEGE OF BEING THE CITY'S RATE CONSULTANTS FOR THE BETTER PART OF THE LAST DECADE. WE APPRECIATE THE CHANCE TO COME HERE AND TO TALK WITH YOU THIS MORNING. TYPICALLY, AS KAREN INDICATED, EVERY TWO OR THREE YEARS WE DO AN UPDATE OF YOUR FINANCIAL FORECAST AND YOUR LONG-TERM RATE PLAN. BUT IN THE PAST YEAR THERE'S BEEN A SERIES OF VERY UNUSUAL AND VERY EXTRAORDINARY IMPACTS AND DEVELOPMENT TO YOURATER AND WASTEWATER FUND AND THAT'S NECESSITATED A REVIEW THIS YEAR AND A REVISION TO YOUR RATE PLAN. IN THE INTEREST OF TIME I'M NOT GOING TO GO OVER EVERY CHART IN THE PRESENTATION AND YOU HAVE THAT THERE FOR YOUR REVIEW. BUT I DO WANT TO PROVIDE A BRIEF BACKGROUND ON YOUR CURRENT RATES AND WHAT PEOPLE ARE PAYING. THEN I WANT TO TALK ABOUT THE REASONS WHY THE RATES AND YOUR COSTS HAVE BEEN GOING UP IN THE LAST YEAR. AND THEN WE'LL SUMMARIZE IT BY PRESENTING A NEW RATE PLAN FOR YOU TO CONSIDER. THIS CHART RIGHT HERE IS A VERY IMPORTANT CHART BECAUSE IT'S A CHART THAT MANY UTILITIES LIKE TO TAKE A LOOK AT. COMMON QUESTION THAT IS ASKED IS HOW DO OUR RATES COMPARE TO OUR NEIGHBORS. THE CITY OF PLANO'S WATER AND WASTEWATER RATES ARE VERY COMPETITIVE WHEN YOU LOOK AT THE NORTH TEXAS CORRIDOR. THE AVERAGE CUSTOMER IN THE CITY USES SOMEWHERE AROUND 10,000 GALLONS OF WATER AND SERVICE A MONTH. THIS CHART COMPARES WHAT A PLANO CUSTOMER PAYS WITH OTHER CITIES IN THE NORTH TEXAS REGION. AS YOU CAN SEE, FOR 10,000 GALLONS OF WATER SERVICE, YOU'VE GOT JUST ABOUT THE LOWES RATES AROUND. CUSTOMER PAYS ABOUT $89.92 FOR 10,000 GALLONS OF WATER AND 5,000 GALLONS OF WASTEWATER AND IT'S ABOUT $30 BELOW THE STATE AVERAGE AND BELOW VIRTUALLY EVERY OTHER COMPARABLE CITY IN THE NORTH TEXAS CORRIDOR. SO YOUR RATES ARE VERY, VERY COMPETITIVE RIGHT NOW. SO, WHAT'S HAPPENING IN THE INDUSTRY? WHY AM I HERE TODAY? WELL, THERE ARE FOUR BASIC FACTORS THAT ARE DRIVING THE NEED FOR THE CITY TO RE-EVALUATE ITS RATE PLAN. THE FIRST IS YOUR ACCOUNT GROWTH DUE TO DELOPMENTS IN THE ECONOMY, WE'RE ASSUMING NOW THAT ACCOUNT GROWTH IS GOING TO START TO SLOW A LITTLE BIT. YOUR USAGE HAS SPIKED IN THE SUMMER OF 2022, BECAUSE IT'S BEEN VERY, VERY HOT AND WE'RE AT LEAST THINKING THAT IT'S NOT GOING TO BE QUITE THAT HOT NEXT YEAR -- AT LEAST WE HOPE THAT IT ISN'T, AND THEN THAT'S GOING TO DEPRESS YOUR USAGE A LITTLE BIT. SECONDLY -- INFLATION. AS WE ALL KNOW, INFLATION HAS SPIKED UPWARDS IN THE LAST DECADE AND INFLATION IS VERY INSIDIOUS AND IT IMPACTS ALL OF OUR LIVES, EVERY PORTION OF OUR LIVES, AND IT ALSO IMPACTS OUR WATER AND WASTEWATER COSTS. THE THIRD IS YOUR CAPITAL IMPROVEMENT PLAN. WELL, DUE TO THE FACT THAT INFLATION HAS HIT SO MUCH, IT IS SIGNIFICANTLY DRIVING UP YOUR CAPITAL COSTS. SO YOUR CAPITAL REPAIR COSTS HAVE GONE UP A TREMENDOUS AMOUNT AND YOU HAVE TO TAKE THAT INTO CONSIDERATION AS WELL. AND THEN, FINALLY, AND MOST IMPORTANTLY, IS THE IMPACT OF NORTH TEXAS MUNICIPAL WATER DISTRICT. LIKE I SAID, I'M NOT GOING TO GO OVER ALL OF THE DETAIL SLIDES. LET'S JUST TALK A LITTLE BIT ABOUT INFLATION A LITTLE BIT MORE. ALMOST EVERY YEAR OF THE LAST 30 YEARS THAT I'VE BEEN DOING WATER AND WASTEWATER RATE CONSULTING I HAVE ASSUMED A 3% INFLATION RATE. WELL, GUESS WHAT, WE CAN'T DO THAT RIGHT NOW. WE'RE IN OUR LATEST MODEL WE'RE ASSUMING THAT YOUR GENERAL INFLATION RATE IS GOING TO BE ABOUT 5% TO 6% FOR THE NEXT COUPLE OF YEARS AND THEN HOPEFULLY BEYOND 2025, IT'S GOING TO GO BACK TO ABOUT THE 3% RATE. BUT THAT RIPPLES THROUGH EVERYTHING. IT RIPPLES THROUGH SALARIES, UNIFORM COSTS, ENERGY COSTS, INSURANCE COSTS, ALL OF THAT IS GOING TO GO UP AS A RESULT OF THAT. THAT'S REALLY GOING TO PUT A LOT OF PRESSURE ON YOUR BUDGET IN THE NEXT COUPLE OF YEARS. SECONDLY, THE CITY IS NOW ASSUMING OR PLANNING FOR DOING ABOUT $19.5 MILLION IN DIRECT-TO-FUNDED CAPITAL IMPROVEMENTS IN 2022 AND $14.5 MILLION IN THE YEARS BEYOND THAT. GOOD NEWS IS THAT IS A DIRECT INVESTMENT IN THE CITY BUT IT'S A HIGHER COST AND IT'S GOING TO ENABLE YOU TO PREVENT DOING ANY LONG-TERM WATER AND WASTEWATER DEBT OVER THE NEXT SEVERAL YEARS. BUT THAT HAS TO BE ACCOUNTED FOR IN THE RATE PLAN. BUT THE BIGGEST DEAL BY FAR IS NORTH TEXAS. FOR THE FIRST TIME IN TWO YEARS, NORTH TEXAS HAS ANNOUNCED THEY'RE GOING TO BE INCREASING THE RATE THAT THEY CHARGE FOR WHOLESALE WATER TO THE CITY OF PLANO. THE RATE INCREASE IS A SIGNIFICANT INCREASE FROM WHAT THEY HAD BEEN TELLING US JUST LAST YEAR. THEY'RE ALSO PROJECTING SIGNIFICANTLY HIGHER WASTEWATER RELATED UPPER EAST FORK INTERCEPTOR COSTS, SO HITTING YOU BOTH ON THE WATER SIDE AND THE WASTEWATER SIDE. HOWEVER, IF THERE'S A SILVER LINING ON THE CLOUD IT'S THE FACT THAT THE NEW CONTRACT THAT YOU NEGOTIATED WITH NORTH TEXAS IS GOING TO MITIGATE THE IMPACT OF A LOT OF THESE FACTORS. IN 2022, YOUR USAGE HAS SPIKED BECAUSE OF -- BECAUSE OF THE HOT SUMMER. WELL, IN PRIOR YEARS, YOU HAD PAID THE IMPACT OF THAT FOREVER. NOW IT'S GOING TO BE FULLY PHASED OUT BECAUSE OF THE FACT THAT YOU NOW HAVE A ROLLING AVERAGE IN WHAT YOU PAY TO NORTH TEXAS. SO THAT HAS IMPACTED YOU SIGNIFICANTLY. AND IT'S ALSO GOING TO -- AND IT'S GOING TO IMPACT AS YOUR TAKE PAY -- BASICALLY IT'S GOING TO MEAN THAT YOU'RE NOT PAYING FOR THE WATER THAT YOU'RE NOT USING ANYMORE OVER THE NEXT SEVERAL YEARS, THAT'S GOING TO PHASE OUT, AND THAT'S GOING TO SIGNIFICANTLY BENEFIT YOUR RATEPAYERS. THIS IS NORTH TEXAS' LATEST FORECAST OF COSTS. LAST YEAR THEY TOLD US TO ANTICIPATE ABOUT A 7.4% INCREASE THIS YEAR. A COUPLE MONTHS AGO THEY SAID, NEVER MIND IT'S GOING TO BE 13.4% AND NEXT YEAR THEY'RE PROJECTING 11.2% INCREASE. FOR EIGHT OF THE NEXT NINE YEARS THEY'RE FECASTING HIGHER RATE INCREASES THAN WHAT THEY JUST TOLD US LAST YEAR, SO THAT MEANS THAT WE'VE GOT TO GO BACK AND TO ADJUST THE RATE PLAN, THE COSTS AND THE PROJECTED RATES. YOU PAY RIGHT NOW $2.99 FOR A THOUSAND GALLORS FOR NORTH TEXAS WATER. LAST YEAR THEY PROJECTED THAT RATE WOULD HIT $3.82 BY 2027, AND $4.64 BY 2031. NOW THEY'RE TELLING US THAT RATE IS GOING TO BE $6.16. THAT'S A 30% TO 40% INCREASE OVERUST O YEAR FROM WHAT THEY HAD TOLD US IN PRIOR YEARS. THIS CHART RIGHT HERE SHOWS THE AMOUNT OF WATER THAT YOU HAVE PURCHASED FROM NORTH TEXAS AND YOUR TAKE OR PAY LEVEL. AND AS YOU CAN SEE THANKS TO PRIOR YEARS THE ACTUAL AMOUNT OF WATER THAT YOU'VE BEEN PURCHASING IS THE BLUE LINE AND YOU CAN SEE THE DIFFERENCE BETWEEN THE LINE AND THE BLUE BARS -- THAT'S ALL OF THE WATER THAT YOU ARE PAYING FOR THAT& YOU'RE NOT USING. BUT LOOK WHAT'S GOING TO HAPPEN IN THE NEXT FIVE YEARS. IT'S ALL GOING TO EQUALIZE. SO, THE PROBLEM THAT YOU FACED FOR THE LAST 20 YEARS OF PAYING R WATE THA YOU'RE NOT BUYING IS GOING TO GO AWAY, THANKS TO THIS NEW CONTRACT. THIS CHART RIGHT HERE IS YOUR PROJECTED COST OF SERVICE FOR THE WATER AND WASTEWATER UTILITY. IT'S GOING TO COST YOU ABOUT $120 MILLION TO RUN YOUR WATER UTILITY THIS YEAR AND ABOUT $81 MILLION TO RUN YOUR WASTEWATER UTILITY. BUT NORTH TEXAS IS 72% OF THE COST OF WATER SERVICE. MORE THAN ALL OF YOUR OTHER COSTS COMBINED. AND THAT'S JUST A PASSTHROUGH TO YOUR RATEPAYERS AND THAT'S WHY WE KEEP HARPING ON THE SIGNIFICANCE OF THESE NORTH IT IS IMPACTING ALL OF YOUR CUSTOMER BILLS ON THE WATER SIDE, AND THE WASTEWATER SIDE AS WELL. IT ALSO MEANS THAT OVER THE NEXT 10 YEARS THAT YOUR COSTS OF PROVIDING WATER AND SEWER SERVICE ARE PROJECTED NOW TO BE ABOUT $40 MILLION MORE THAN WHAT WAS PROJECTED LAST YEAR DUE, AGAIN, PRIMARILY TO THE NORTH TEXAS INCREASES. SO, LET'S TALK ABOUT THE RATE PLAN. AND WE'RE GOING TO RECOMMEND THAT THE CITY IMPLEMENT A 9% WATER AND WASTEWATER RATE ADJUSTMENT EFFECTIVE NOVEMBER 1ST 2022. THIS RATE PROPOSAL IS NOT GOING TO BE THE LAST INCREASE THAT'S GOING T BE NEEDED BUT IT'S THE ADJUSTMENT THAT IS NEEDED FOR 2022. YOU HAVE A VERY HEALTHY WATER AND SEWER FUND BALANCE, SO THE RATE PLAN CALLS FOR A GRADUAL NOMINAL DRAWDOWN OF YOUR FUND BALANCE TO LESSEN THE IMPACT OF THE NORTH TEXAS INCREASES ON YOUR RATEPAYERS. THAT'S WHAT RESPONSIBLE UTILITY DOES, THEY USE THEIR FUND BALANCE IN TIMES WHEN COSTS ARE GOING UP TO MITIGATE THE IMPACT ON YOUR RATEPAYERS, AND THAT'S EXACTLY WHAT THIS RATE PLAN IS GOING TO BE DOING. SO THIS IS THE RATE PLAN ITSELF, I'M NOT GOING TO EVEN GO OVER ALL OF THE NUMBERS, OF COURSE, BUT IT DID SHOW INCREASES IN YOUR MONTHLY MINIMUM CHARGE, AND IN YOUR VOLUME METRIC RATE PER THOUSAND GALLONS. IT IS A 9% INCREASE. AND WE'RE ALSO SHOWING ON THIS CHART THE NEED FOR INCREASES IN FUTURE YEARS. IF NORTH TEXAS DOES NOT CHANGE ITS PLANS TO DO THESE RATE ADJUSTMENTS OVER THE NEXT THREE TO FIVE YEARS, YOU'RE PROBABLY LOOKING AT ANOTHER 9 INCREASE XT YEAR AND A 9% ADJUSTMENT IN 2024, AND A LESSER ADJUSTMENT IN 2025. BUT, AGAIN, WE RECOMMEND THAT YOU IMPLEMENT THE ONE-YEAR PLAN AND THAT YOU LOOK AT IT EACH OF THE NEXT THREE YEARS TO SEE WHETHER OR NOT THEY'VE REDUCED THEIR INCREASE AND YOU CAN PASS THOSE SAVINGS THROUGH TO YOUR ULTIMATE RATEPAYER. WHAT DOES THE IMPACT MEAN? FOR THE VAST MAJORITY OF RATEPAYER THIS IS MEANS A $6 TO $8 INCREASE FOR THE WATER AND WASTEWATER PORTION OF YOUR BILL. THE AVERAGE CUSTOMER USES ABOUT 10,000 GALLONS A MONTH AND SO THAT MEANS THAT THE VAST MAJORITY OF BILLS WILL BE 10,000 GLLONS OR LESS. THINK ABOUT HOW PEOPLE USE WATER. MOST OF THE YEAR YOU USE 8,000 TO 10,000 GALLONS AND MAYBE IN THE SUMMER MONTHS MORE THAN THAT, BUT FOR THE VAST MAJORITY OF BILLS, WE'RE TALKING ABOUT $6 TO $8 A MONTH AND IF YOU USE MORE THAN 10,000 GALLONS IT'S MORE THAN THAT, AND LESS THAN 10,000, LESS THAN THAT. BUT THE BOTTOM LINE IS THIS IS A $6 TO $8 INCREASEOR MOST RATEPAYERS OVER THE NEXT YEAR. IT'S NEVER EASY ASK RATEPAYERS TO PAY MORE BUT WITH THIS 9% ADJUSTMENT IT ENSURES THAT YOUR UTILITY IS FINANCIALLY HEALTHY AND IT ENABLES YOU TO COVER ALL OF THE COSTS OF PROVIDING WATER AND SEWER SERVICE. WITH THAT I'LL BE HAPPY TO ANSWER ANY QUESTIONS THAT YOU HAVE. >> Israelson: MAYOR AND COUNCIL, AS ALL OF YOU KNOW UTILITIES IS KIND OF MY BACKGROUND, BEN AND I HAVE A LIST A L ARE LINEAGE OF G FOR THE COMPANY YEARS AND YEARS AGO. >> I WAS FIRST, BY THE WAY [Laughter]. >> Israelson: YES, YOU WERE AND I FIXED ALL OF THOSE THINGS THAT YOU LEFT BEHIND. [Laughter] SO THE OTHER THING THAT I WOULD SHARE IS THAT IT WAS SHARED WITH ME BACK AT THAT TIME THAT THE MOST PRECIOUS COMMODITY IN THE STATE OF TEXAS IS NOT OIL AND GAS -- IT'S WATER. AND IT'S PRICED AS SUCH NOW WITHIN THIS CURRENT ECONOM THAT WE'RE IN. AND I THINK THAT THERE'S -- THERE'S A LOT TO, YOU KNOW, THE NORTH TEXAS RATES GOING UP, BUT I ALSO WANT TO MAKE SURE THAT -- THAT YOU REALIZE THAT WE'RE GOING TO RE-ENGAGE THIS NEXT YEAR IN OUR WAT CONSERVATION MESSAGING AND OUR EDUCATION BACK WITH OUR CITIZENS TOO, BECAUSE WATER IS A USAGE FEE. SO THE MORE YOU USE, THE MORE YOU PAY. AND SO WHILE THE COSTS DO HAVE TO BE PASSED ALONG, WE WANT TO MAKE SURE THAT OUR CITIZENS ALSO REALIZE THAT REDUCING THEIR SPRINKLING TIME BY TWO MINUTES AND A LOT CAN GO TO MITIGATE THOSE INCREASES. AND MOTHER NATURE CAN ALSO CONTRIBUTE A LOT AND THAT WOULD REALLY HELP THINGS ALONG, BUT FOR US I THINK THAT PART OF THAT EDUCATION IS THAT WHEN WE WERE IN THE DROUGHTS OF THE MID 2000s OR THE EARLY 2000 TEENS WE GOT VERY DISCIPLINED IN OUR TWICE A WEEK WATERING AND WE GOT VERY DISCIPLINED IN THE AMOUNT OF WATER THAT WE WERE USING. SINCE THEN WE HAVE RELAXED QUITE A BIT. WE BUILT A NEW RESERVOIR WITH THE WATER DISTRICT AND WE'VE KIND OF TAKEN IT A LITTLE BIT >> Isrealson: AND SO OVER THIS NEXT YEAR, WE'RE GOING TO WORK ON GOING BACK TO THAT EDUCATION MODEL OF WHAT OUR WATER CONSERVATION PLAN IS, WORKING WITH OUR CITIZENS, SO THEY CAN HELP IMPACT THEIR BILL AS WELL. AND IF THEY'RE LOOKING TO HELP MITIGATE SOME OF THOSE COSTS, THEY REALIZE HOW THEY CAN DO THAT THROUGH SOME OF THEIR BEHAVIORS. I JUST WANTED TO MENTION THAT AS WELL AS PART OF OUR EDUCATION EFFORT TO HELP LESSEN IS BURDENER IF WE CAN. >> Mayor Muns: MAYOR PRO TEM? >> Prince: MARK THIS IS PROBABLY A QUESTION FOR YOU. HOW MUCH AUDITING OR HOW MUCH TRANSPARENCY DO WE HAVE INTO THE ACTUAL COSTS THAT ARE BEING PASSED ON TO US BY NORTH TEXAS. >> Isrealson: THAT'S A GREAT QUESTION. AS PART OF THAT SETTLEMENT, WE ACTUALLY HAD A THIRD-PARTY AUDITOR FOR THE FIRST TIME COME IN AS TO WHAT YOU WOULD SAY AS REASONABLENESS TO THE EXPENSES AT THE WATER DISTRICT. THIS YEAR THEY ACTUALLY HAD THAT AUDIT COME THROUGH. THE RESULTS WERE THAT IT WAS WITHIN WHAT THEY WOULD CALL REASONABLE FOR THAT INDUSTRY, AS FAR AS RESERVES, PRACTICES, EXPENSES, AND THEY DID SOME MEANS TESTING OF THEIR PROGRAMS AND SERVICES, AND FOUND THAT THOSE WERE REASONABLE. BUT I DO THINK IT'S IMPORTANT THAT WE, AS A CITY, NOT ONLY CONTINUE TO ENGAGE IN THAT IN A MEANINGFUL WAY, BUT THINK IT'S IMPORTANT FOR US TO SHARE WITH OUR BOARD MEMBERS THE IMPACT OF WHAT'S HAPPENING IN THIS COMMUNITY TO OUR RESIDENTS WITH REGARDS TO THOSE BILLS, BECAUSE I KNOW FOR EVERYBODY THIS IS -- THIS IS WHAT I'VE HEARD MORE ABOUT THAN ACTUALLY EVEN ON THE PROPERTY TAX SIDE OF THINGS, IS KIND OF WHERE THE UTILITIES ARE RIGHT NOW, WHAT THE INCREASES ARE, BUT ALSO WHERE THEY'RE GOING IN THE NEXT SEVERAL YEARS. SO THERE'S ONLY CERTAINZ -- A CERTAIN NUMBER OF THINGS THAT YOU CAN DO WITH A RATE MODEL AND WITH A RATE STRUCTURE TO JUST T TRY TO MOVE THINGS AROUND, BUT WHEN YOUR COST BASIS SHIFTS ON YOU AND IS INCREASING, YOU'RE REALLY -- YOU'VE KIND OF TIED THAT BALLOON OFF. IN YOU SQUEEZE IT AT ONE END, IT'S GOING TO POP OUT AT THE OTHER. THERE'S NOT MUCH ROOM TO MOVE. SO UNLESS THE WATER THE DISTRICT REALLY FINDS A WAY OF MITIGATING SOME OF THOSE COSTS OR TO YOUR POINT, KIND OF GOING BACK THROUGH AND SEEING WHAT THEY CAN DO TO LESSEN THAT BURDEN, WE'RE -- WE'RE KIND OF COMMITTED TO FILLING THAT GAP. BUT I DO THINK IT'S IMPORTANT FOR US, AND I'M HAPPY TO ALSO SHARE THAT WITH THE ECUTIVE DIRECTOR AND OTHERS, IS THAT WE EXPECT THAT, YOU KNOW, THAT THEY'RE DOING MORE TO HELP MITIGATE SOME OF THOSE EXPENSES. >> Prince: YEAH, I WOULD APPRECIATE THAT, BECAUSE WE ALL KNOW THAT EVERYBODY'S FACING THE -- ALL THE SAME LABOR MATERIALS INFLATIONARY PRESSURES, BUT SOME OF THOSE ARE VERY SIGNIFICANT CHANGES TO PASS ON. AND AT THE LAST MINUTE, AND JUST AS AN EXAMPLE, WHEN I GO TO A ROUGH RIDERS GAME AND I SEE THAT THE NORTH TEXAS MUNICIPAL WATER DISTRICT IS ONE OF THE PRIMARY SPONSORS, I JUST THINK, IS THAT REALLY HOW THEY SHOULD BE SPENDING THEIR MONEY? COULD WE SAVE -- YOU KNOW, IT'S JUST THINGS LIKE THAT THAT JUST MAKES YOU WONDER. SO THINGS LIKE THAT, I WOULD JUST LOVE IF WE COULD MAYBE PRESS A LITTLE HARDER. >> Isrealson: HAPPY TO DO IT. >> Mayor Muns: COUNCILMEMBER WILLIAMS? >> Williams: THANK YOU. AND THIS QUESTION IS FOR ANYBODY WHO CAN ANSWER IT. YOU SHOWED THE CHANGE, 33% CHANGE IN THEIR ESTIMATED FORECAST OF WHAT THE COSTS WOULD BE IN A DECADE OVER -- VERSUS WHAT THEY ANTICIPATED LAST YEAR. WHAT CHANGED IN THAT YEAR. IT CAN'T BE ALL DUE TOHE CURRENT INFLATION BECAUSE AT THIS TIME LAST YEAR, ACCORDING TO THE CHART WE SAW EARLIER, INFLATION WAS STILL AT 5.4%, IT'S NOT THAT BIG A LEAP. >> Isrealson: SO PART OF WHAT HAS SHIFTED, AND IT SHOULD HAVE BEEN ACCOUNTED INTO THE MODEL, I'LL HAVE TO GO BACK AND ASK THAT SPECIFIC, BECAUSE THERE IS QUITE A BIT OF A DIVERGENCE FROM WHAT WAS PROJECTED VERSUS WHAT IS. WE HAVE KNOWN THAT THE BOAT ARC RESERVOIR WAS GOING TO COME ONLINE. THERE'S A GROUNDBREAKING LATER ON THIS FALL, AND THAT'S A $2 BILLION INVESTMENT. THERE'S AN ADDITIONAL PUMP STATION AND PUMPING CAPACITY COMING AT THE CITY OF LEONARD, THEY'RE GOING TO HAVE ANOTHER TREATMENT PLANT THAT'S GOING TO BE COMING ONLINE. BUT IT'S KIND OF A SUSTAINED DIVERGENCE IS WHAT I SAW IN THAT. AND I THINK IT'S IMPORTANT TO UNDERSTAND HOW THAT MOVEMENT WORKS. AND I CAN GET SOME SPECIFICS FROM THEM AND REPORT THAT BACK TO COUNCIL. >> Williams: PLEASE. BECAUSE ALL OF THOSE THINGS WERE KNOWN AT THIS TIME LAST YEAR. WE KNEW THAT IT WOULD BE IMPACTING US IN 2032. >> YEAH, IF I CAN MAKE A COMMENT REAL QUICK. IF I CAN MAKE A COMME REAL QUICK. THE DIFFERENCE BETWEEN -- BECAUSE WHAT THEY GAVE US IN JUNE AND WHAT THEY GAVE US IN JULY IS TOTALLY DIFFERENT. WHAT WE HAVE BEEN TOLD -- WE'VE BEEN ON PARTNERING MEETINGS WITH THEM, OF COURSE, INFLATION, CHEMICAL COSTS, STAFF SHORTAGES. ANYWAY, THEY HAVE A WHOLE LIST OF TREASURE TROVES THAT THEY HAVE TOLD US ABOUT THAT IS MAKING UP THAT DIFFERENCE. SO IT'S NOT JUST BOADARC LAKE BECAUSE THEY DIDN'T KNOW ABOUT THAT LAST YEAR. BUT WE WILL LOOK MORE INTO IT. WE HAVE ANOTHER MEETING WITH THEM AT THE END OF AUGUST. >> Mayor Muns: COUNCILMEMBER HOLMER? HOM >> Holmer: I WAS GOING TO SAY THE SAME THING. I TOOK A TOUR RECENTLY AT THE WATER DISTRICT AND THEY SAID THE CHEMICAL COSTS WERE DOUBLING AND TRIPLING, AND THAT WAS A HUGE PART OF THE REASON FOR THE INFLATION. >> AND I'M SURE THEY'RE LIKE US, THEY'RE BEING HIT WITH THE CONSTRUCTION COSTS, TOO, SO... >> Mayor Muns: SO HOW DO WE REPLACE THE FUND BALANCE IF WE CONTINUE TO DRAW INTO IT TO KIND OF SOFTEN THE BLOW TO OUR RESIDENT WHERE DO WE REPLACE THAT AT DOWN THE ROAD? >> YOU'LL BE REPLACING IT IN THE NEXT TWO TO THREE YEARS. ONE OF THE THINGS THAT WE'VE LEARNED IN OUR LONG YEARS OF EXPERIENCE DOING RATE WORK IS THAT RAILT PAYERS TEND TO LIKE CONSISTENT, LOWER RATE ADJUSTMENTS. AND SO YOU COULD PASS THROUGH ALL THE COSTS OF NORTH TEXAS' INCREASE IN THE FIRST YEAR, BUT IT WOULD BE A HIGHER INCREASE AND BE MORE DISRUPTIVE TO YOUR RATEPAYERS. SO ONE OF THE OTHER BENEFITS OF RUNNING THE WATER INDUSTRY IS THAT YOU KNOW THE DEMAND -- THE PRODUCT IS GOING TO BE IN DEND FOR T NEXT SEVERAL YEARS. SO WHAT YOU DO IS YOU PHASE IT IN SLOWLY. YOU TAKE -- YOU TAKE A SLOW DRAW DOWN IN THE NEXT TWO YEARS AND THEN YOU MAKE IT UP IN THE PRIOR -- IN THE FORECAST YEARS AFTER THAT. YOU JUST -- YOU'VE GOT TIME ON YOUR SIDE, YOU PLAY IT. YOU'RE GOING TO HAVE A LITTLE BIT MORE GROWTH, TAKE ADVANTAGE OF THAT AS WELL. >> Mayor Muns: COUNCILMAN RICCIARDELLI? >> Ricciardelli: THANK YOU, MAYOR. LOOKING AT THE MONTHL THAT YOU'VE GOT UP THERE, DAN, IT STRIKES ME THAT EVEN WITH THE SAME CHARGESROM THE WATER DISTRICT, EVEN WITH THE DISADVANTAGED PROVIDED BY TAKE OR PAY, CURRENTLY WHICH IS BEING PHASED OUT, WE'RE DOING BETTER THAN MOST OR ALL OF OUR NEIGHBORS. >> Rhodes-Whitley: YES. >> Ricciardelli: WHAT IS THE CITY OF PLANO DOING THAT IS FRANKLY BETTER THAN OUR NEIGHBORS, YOU KNOW, TO PASS ALONG THESE SAVINGS? >> Rhodes-Whitley: WELL, ONE OF THE PRIVILEGES OF WORKING FOR A CITY LIKE PLANO IS YOU'VE ALWAYS HAD A VERY PROFESSIONAL MANAGEMENT OF YOUR FINANCIAL SITUATION. WHEN WE'RE HIRED TO DO RATE WORK, A LOT OF TIMES IT'S FOR CITIES THAT ARE IN A WORLD OF HURT FINANCIALLY. THEY HAVEN'T MADE THE DIFFICULT DECISIONS THAT THEY'VE NEEDED TO MAKE. THEY HAVEN'T DONE THE RATE ADJUSTMENTS, THEY HAVEN'T DONE THE INVESTMENTS IN THEIR SYSTEMS. YOU GUYS HAVE. YOU HAVE A VERY WELL FUNCTIONING SYSTEM, YOU HAVE A VERY HEALTHY FUND BALANCE, BUT YOU'VE GOTTEN THAT WAY BECAUSE IN THE PAST YOU'VE MADE DIFFICULT DECISIONS. I'VE WORKED FOR SOME UTILITIES THAT HAVEN'T RAISED THEIR RATES IN MANY YEARS, AS A RESULT THEIR SYSTEMS ARE FALLING APART AND THEIR UTILITY FUND IS BANKRUPT. SO, YES, WHATOU'VE DONE, YOU'VE MADE DIFFICULT DECISIONS, YOU YOU'VE MADE THE INVESTMENT, YOU'VE HAD THE PROFESSIONAL MANAGEMENT, THAT'S WHY YOU'RE AT THE LOW END. I CAN TOLL YOU EVERY ONE OF THOSE CITIES ARE GOING TO BE DOING SIGNIFICANT RATE INCREASES OVER THE NEXT FEW YEARS. . I KNOW THAT BECAUSE I WORK FOR SOME OF THOSE CITIES. >> Ricciardelli: THANK YOU FOR THAT ANSWER. IT'S REALLY A TESTAMENT TO STAFF AND PAST COUNCILS. I ALSO WANT TO ECHO WHAT THE MAYOR PRO TEM SAID AND WHAT OTHERS HAVE SAID. YOU KNOW, I HEARD COUNCILMEMBER WILLIAMS AND COUNCILMEMBER HOLMER TALKING OUTHISVER THERE, BUT I THINK IT WOULD BE HELPFUL TO DO A WORK SESSION WITH NORTH TEXAS, HAVE THEM COME IN AND REALLY GO IN DEPTH ABOUT WHAT IS CAUSING THESE TREMENDOUS INCREASES, BECAUSE I THINK IT BEARS CLOSER ANALYSIS. IT MAY BE COMPLETELY UNAVOIDABLE, AND I UNDERSTAND THAT WE HAVE TO HAVE WATER. YOU KNOW, YOU CAN'T SAY, WELL, YOU KNOW, WE CAN'T AFFORD WATER SO WE'RE JUST NOT GOING TO HAVE WATER. YOU HAVE TO HAVE WATER. BUT ARE THERE THINGS THAT COULD BE DONE DIFFERENTLY OR IS IT JUST THE UNAVOIDABLE CHEMICAL COST INCREASES, THE NEED F ADDITIONAL RESERVOIRS, WEATHER CONDITIONS AND DROW DROUGHTS THAT ARE COMPLETELY UNAVOIDABLE. BUT I THINK DIGGING IN DEEPER WOULD BE A GOOD MOVE TO UNDERSTAND FURTHER IF NOTHING ELSE. SO I'D LOVE TO SCHEDULE THAT IN THE FUTURE. >> I THINK IT ACTUALLY MIGHT BE BETTER TO BRING OUR BOARD MEMBERS BACK FIRST AS A PRELIMINARY STEP TO DO THAT, BUT THE OTHER THING I WANTED TO MENTION, AND I SEE DENISE SITTING UP THERE. WHEN YOU TALK ABOUT DIFFERENCES IN OUR UTILITY VERSUS OTHER UTILITIES. THERE'S A COUPLE OF THINGS THAT DAN -- AND DAN HAS BEEN DOING THIS A LONG TIME. HE IS RECOGNIZED AS AN EXPERT. BUT VERY FEW CITIES ACTUALLY HAVE WATER, PAY FOR WATER, SEWER PAY FOR SEWER AND CASH FINANCE THE INFRASTRUCTURE REPAIRS AND MAINTENANCE. THERE'S A LOT OF BLENDING SUBSIDIES AND DEBT ISSUED IN THOSE UTILITIES, AND I THINK IF YOU WERE DRAWING UP HOW TO HAVE THE UTILITY FUNCTION AND HOW YOU WANTED IT TO BE FINANCED, I THINK DAN WOULD TELL YOU THAT HAVING WATER PAY FOR WATER, SEWER PAY FOR SEWER AND CASH FINANCING THIS AS AN ENTERPRISE FUND SO THAT THE INFRASTRUCTURE IS TAKEN CARE OF, IT WOULD PROBABLY BE BEST PRACTICES. >> ABSOLUTELY. IT WOULD. >> Mayor Muns: THANK YOU. REALLY APPRECIATE IT, DAN. >> THANK YOU VERY MUCH. >> GOOD MORNING, MAYOR AND COUNCIL, AND MARK ISRAELSON, CITY MANAGER MAC. MY NAME IS ABBEY OWENS. I'M HERE BEFORE YOU TODAY TO REQUEST CONSIDERATION OF INCREASING OUR RESIDENTIAL ENVIRONMENTAL WASTE SERVICES COST. WE CURRENTLY ARE AT $17.10 FOR THE 95-GALLON CART WHICH THE MAJORITY OF OUR RESIDENTS HAVE, AND WE'RE REQUESTING AN INCREASE OF $2.50. IT'S A 14.5% INCREASE AND WE'RE ASKING TO APPLY THAT SAME TO THE 68-GALLON CART WHICH FEWER OF OUR RESIDENTS USE, AND THAT WOULD BRING THEIR RATE FROM 12.25 TO 14.03. AS CAR REN MENTIONED, WE HAD PREVIOUSLY PROPOSED A $2 INCREASE AND THAT WAS BASED UPON WHAT WE ESTIMATED THE NORTH TEXAS COST WOULD BE FOR SOLID WASTE. WE ESTIMATED THOSE AT ABOUT 8.3 MILLION. AND AT THE END OF JULY, THE REQUEST FROM NORTH TEXAS FOR NEXT YEAR IS ACTUALLY CLOSER TO 8.7 MILLION. EITHER WAY, WE'RE GOING TO REQUEST AN INCREASE. WE COMPARED OUR RATE TO OUR MEMBER CITIES THAT SHARE THE NORTH TEXAS COST WITH US FOR SOLID WASTE OPERATIONS, AND AS YOU'LL SEE HERE, EVEN WITH OUR PROPOSED $2.50 WE'RE STILL BELOW THE AVERAGE OF THESE FIVE MEMBER CITIES. ADDITIONALLY, THERE ARE TWO CITIES BELOW US AND TWO ABOVE. I WOULD LIKE TO MENTION THAT McKINNEY, EVEN THOUGH THEY'RE SHOWING THAT THEY'RE NOT INCREASING THEIR RATE, THEY ACTUALLY MADE A RATE INCREASE IN APRIL, AND THEY ARE CURRENTLY ABOUT TO GO OUT TO BID FOR THEIR SOLID WASTE CONTRACT TO DO ANOTHER ONE, SO THEY WILL LIKELY SEE IN 18 MONTHS WHENEVER THAT GOES INTO EFFECT, A RATE INCREASE AT THAT TIME. ALAN IS PROPOSING $1.50 RATE AT THIS TIME AND THEY'RE PROBABLY GOING TO ASK FOR THAT SAME AGAIN IN OCTOBER OF NEXT YEAR. SO THE MAIN REASON WE'RE ORIGINALLY COMING BEFORE YOU FOR THE $2 INCREASE WAS TO ADDRESS THE DIRECT FUEL COST IMPACTS TO THIS FUND. IN 2021, WE HAD STARTED THE YEAR BUDGETING 1.2 MILLION. AS YOU ALL HAVE SEEN, DIESEL PRICES HAVE BEEN VERY HIGH. AND SO AT REESTIMATE TIME, IT WAS INCREASED BY $600,000 TO ACCOUNT FOR THAT. AND THEN GOING INTO NEXT BUDGET YEAR, THERE'S AN ADDITIONAL INCREASE OFNOTH $400,000. SO ALTOGETHER, THE TOTAL IMPACTS TO THIS FUND JUST FOR THE FUEL COSTS IS ABOUT 1.6 MILLION. THAT WAS THE INITIAL INCREASE FOR THAT $2 REQUEST. WE'RE ALSO EXPERIENCING EQUIPMENT IMPACT COSTS. THESE ARE THE THREE PRIMARY VEHICLES THAT WE USE FOR OUR RESIDENTIAL SERVICES FOR TRASH AND RECYCLING AND BULKY WASTE AND SPECIAL PAID COLLECTIONS. YOU'LL SEE WE HAD A 22% INCREASE ON OUR SIDE LOADERS, OUR REAR LOADERS HAVE BEEN A 25%. AND THE GRAPPLE TRUCK, BOOM TRUC IS A 40% INCREASE ON THAT. WE HAVE DONE SOME THINGS TO TRY TO HELP WITH THESE COSTS. WE DID DO PREORDERS. WE'VE ALSO DONE THAT WITH OTHER LARGE ORDERS WITHIN OUR FLEET LIKE FIRE TRUCKS AND POLICE VEHICLES, AND BY DOING THOSE PREORDERS AND HAVING FUNDING AVAILABLE TO INITIALLY COMMIT TO THOSE, WE WERE ABLE TO KIND OF TAMPER SOME OF THESE COSTS. OTHER CITIES HAVEN'T BEEN ABLE TO DO THAT AND HAVE SEEN THOSE INCREASES LATER. SO OVERALL, OUR SOLID WASTE FUND BALANCE, LIKE THE CONSULTANT WAS MENTIONING BEFORE, YOU KNOW, HAVING THAT WORKING CAPITAL IS VERY IMPORTANT. GOING INTO THIS YEAR, IT WAS NOTN WITH 15 WORKING DAYS AFTER REESTIMATE. SO WE'RE PROJECTED TO END THIS YEAR WITH 15 WORKING DAYS OF CAPITAL. GOING INTO NEXT YEAR WITH THE $2.50 INCREASE, WE WOULD STILL ONLY BE AT ONE DAY'S OPERATION. HAVING THAT WORKING CAPITAL IS WHAT'S BEEN ABLE TO HELP US WITH THESE UNEXPECTED FUEL INCREASES AND EQUIPMENT INCREASES AS WELL. SO IF YOU GUYS HAVE QUESTIONS, LOVE TO ANSWER THEM, BUT AT THIS POINT, WE'RE JUST REQUESTING CONSIDERATION OF THE $2.50 ON THAT TRASH CART AND THEN 14.5%N THE SMALLER ONE. >> Isrealson: AND ABBEY, WOULD YOU SHARE A LITTLE BIT, I THINK IT'S IMPORTANT TO UNDERSTAND THAT WHILE THERE IS A LOT OF CONTROL THAT THE CITIZENS HAVE ON WATER AND SEWER, SOLID WASTE IS A DIFFERENT UTILITY. WE HAVE THE SAME NUMBER OF MILES EVERY SINGLE MONTH, EVERY SINGLE WEEK, THAT WE ACTUALLY HAVE TO DRIVE IN ORDER TO PROVIDE SERVICE TO OUR CITIZENS. THERE REALLY ISN'T A WAY TO SHORTEN THAT DOWN UNLESS WE COLLECT LESS FREQUENTLY, WHICH I ASSURE YOU, COUNCIL, YOU DO NOT WANT TO DO. AND THOSE ASPECTS OF -- THOSE ASPECTS OF PROVIDING THAT SERVICE ARE CRITICAL TO THE COMMUNITY. SO I THINK WHEN YOU TALK ABOUT FUEL PRICES, IF FUEL PRICES COME DOWN IN FUTURE YEARS, WE'RE HAPPY TO BRING BACK THAT ASPECT AS WELL, BUT I DO THINK THAT FROM THIS PERSPECTIVE, UNFORTUNATELY, THERE'S NOT A LOT OF VARIABILITY OR AREAS TO CREATE EFFICIENCY THROUGH THE TRUCKS, THE MILEAGE AND THE DIESEL. IS THAT CORRECT, ABBEY? >> YEAH I WOULD SAY, SO WE HAVE ACTUALLY SEEN A REDUCTION IN OUR GALLONS CONSUMED BUT T NESSARILY MILES. PART OF THAT'S DUE TO -- WE'VE KIND OF BEEN MONITORING TRANSFER STATION WAIT TIMES. WE DO ADJUST ROUTES. BUT, YEAH, WE STILL HAVE TO COLLECT EVERY HOUSE AT EVERY COLLECTION POINT AND MAKE SURE WE'RE HANDLING THOSE AS WELL. SO... >> Mayor Muns: COUNCILMAN GRADY? >> Grady: JUST ONE REAL QUICK QUESTION. CERTAINLY LOOKING AT THE VEHICLES, A OF ALL OF THE VEHICLES WE HAVE IN OUR FLEET, THESE ARE PROBABLY THE VEHICLES THAT TAKE THE MOST PUNISHMENT TO BE REALANDID BECAUSE THEY'RE CONSTANTLY LOADED WITH HEAVY ITEMS AND GET PET BEAT ON AS WELL. BUT DOES THIS ALSO REFLECT THE COST OF THE NORTH TEXAS WASTEWATER TO THEM. SOME OF IT GOES INTO RECYCLING, SOME OF IT WE RETURN INTO COMPOST AND MULCH, BUT OTHER STUFF GOES INTO A LANDFILL FOR WHICH THEY THEN CHARGE US FOR THE USE OF THE LANDFILL. SO IS SOME OF THE COSTING ALSO FROM THE NORTH TEXAS MUNICIPAL WATER DISTRICT? >> YES. SO THAT'S WHY WHEN WE ORIGINALLY REQUESTED A $2 RATE INCREASE. THE DIFFERENCE FROM WHAT THE NORTH TEXAS FROM WHAT WE ESTIMATED IS ABOUT A 50-CENT DIFFERENCE FROM OUR RATE. WE ESTIMATE BASED UPON HISTORICAL TONNAGE TAKEN TO THE LANDFILL WHAT WE THINK WE'RE GOING TO TAKE EACH YEAR. AND THEN NORTH TEXAS SETS THEIR PER TON RATES. THEY DO FLUCTUATE BECAUSE SOMETIMES THEY'LL HAVE MORE CONTRACTOR DROPOFFS. WE KIND OF WERE HOPING FOR THAT, BUT BASED UPON WHAT THEY GAVE US AT THE END OF JULY, THEY ARE NOT ANTICIPATING BEING ABLE TO HAVE A LOWER RATE NEXT YEAR GOING INTO THE LANDFILL, SO WE PAY BASED UPON WHAT WE ACTUALLY TAKE TO THE LANDFILL, SO IF WE HAVE LESS TRASH GOING, MORE RECYCLING, BETTER YARD DEBRIS, BUYING THINGS LESS, THEN WE WOULD BE ABLE TO TAKE LESS TO THE LANDFILL SO... >> Mayor Muns: THANK YOU VERY MUCH. >> YOU'RE WELCOME. >> Mayor Muns: OUR NEXT ITEM IS IN PROGRAM CHANGES, COMPENSATION PLAN. MRS. ROSS? >> Ross: I'M ALWAYS HAPPY TO MAKE IT DOWN THOSE STAIRS WITHOUT ONE OF THOSE. [LAUGHTER] GOOD MORNING MAYOR MUNS AND MEMBERS OF THE COUNCIL, MR. ISRAELSON, I'M LASHAUN ROSS. I'M HERE TO TALK TO YOU ABOUT COMPENSATION AND THE HEALTH PLAN TODAY, MORE IN LINE OF THE WHAT, THE WHY, THE HOW. WHAT WE DO BEHIND ALL OF THIS. KAREN RHODES AND KAYCI DO A PHENOMENAL JOB. I JUST WANT TO GET POPCORN AND WATCH WHAT Y'ALL DO. Y'ALL WORK MAGIC. I KNOW Y'ALL HAVE BEEN TALKING ABOUTHESE NUMBERS WITH KAREN KAR MANY WEEKS, I JUST WANT TO GO A LITTLE BIT DEEPER TODAY TO TALK ABOUT WHY IT'S IMPORTANT. AND I KNOW THAT YOU ALL ALREADY KNOW MUCH OF THIS, AND I JUST WANT TO DIG A LITTLE BIT DEEPER WITH YOU TODAY. SO WHEN WE TALK ABOUT THE CLEAR GUIDELINES FOR COMPENSATION AND BENEFITS, WE THINK THAT THAT ADDS AN ADVANTAGE FOR THE CITY OF TALKED ABOUT IT WHEN WE WERE LISTENING TO THE HERITAGE PRESENTATION EARLIER TODAY ABOUT THE REPUTATION THAT HAPPENS, AND MANY OF YOU HAVE HAPPENED ABOUT THE IMPORTANCE OF THE SERVICES THAT THE EMPLOYEEPROVIDE. AND THIS IS WHY IT'S IMPORTANT TO CONTINUE TO MANAGE OUR HEALTH PLAN, OUR BENEFITS, OUR COMPENSATION, BECAUSE IT IS ABOUT ATTRACTING AND RETAINING. AND IT'S NOT JUST ABOUT GETTING PEOPLE HERE, IT'S ABOUT WHAT IS THE CULTURE THAT WE PROVIDE ONCE PEOPLE ARE HERE, WHAT DOES IT FEEL LIKE TO BE HERE, HOW ARE DECISIONS MADE, HOW ARE EMPLOYEES VALUED? THERE'S THE CLARITY OF REPRESENTATION FOR TOTAL COMPENSATION, HOW DO WE LOOK AT THAT AS A PERCENTAGE OF OVERALL EXPENSES AND WHAT IS THAT IMPORTANCE FOR US. YOU KNOW, WE TALK ABOUT THE PEOPLE AT THE END OF THESE NUMBERS, MUCH OF THE TIME WHEN WE'RE TALK ABOUT OUR CITIZENS, AND WE ALL UNDERSTAND AS PUBLIC SERVANTS AT THE CITY OF PLANO THE IMPORTANCE OF PROVIDING EXCELLENT SERVICES TO OUR CITIZENS. MANY OF US ARE ALSO CITIZENS. MANY OF US ALSO PAY TAXES IN THIS COMMUNITY, AS WELL AS BEING PUBLIC SERVANTS IN THIS COMMUNITY. SO WE UNDERSTAND AND APPRECIATE THE IMPORTANCE OF THIS, SO WE ARE LOOKING AT THE TOTALITY OF ALL OF THESE THINGS AT ALL TIMES IN TERMS OF THE EMPLOYMENT EXPERIENCE THAT WE PROVIDE FOR EMPLOYEES. WE HAVE TO MAKE SURE THAT WE HAVE KNOWLEDGE OF THE INDUSTRY TRENDS, WHAT'S GOING ON AROUND US, WHAT'S IMPACTING MARKET WEE BN TALKING ABOUT THIS CERTAINLY FOR THE LAST COUPLE OF YEARS, AND WE'VE HAD CYCLICAL MOMENTS WHEN WE'VE TALKED ABOUT THAT IN YEARS PRIOR. WE HAVE TO HAVE A CLEAR BASIS FROM WHICH WE MAKE EMPLOYMENT DECISIONS. AND I WANT YOU ALL TO KNOW, AND I KNOW THAT YOU ALREADY DO, MY COLLEAGUES AND I AT THE CITY OF PLANO, WE ARE ANALYZING AND PAYING ATTENTION AND LISTENING AND TRYING TO MAKE THE BEST DECISIONS ALL THE TIME. SOMEONE TALKED ABOUT, I THINK IT WAS COUNCILMAN SMITH EARLIER THAT TALKED ABOUT THE IMPORTANCE OF THE LEADERSHIP THAT HAPPENS TO BE ABLE TO MAKE THESE TYPES OF DECISIONS, AND I ASSURE YOU ALL, THAT WE'RE DOING IT ALL THE TIME. SOHE WEOOK AT THE CITY OF PLANO'S COMPENSATION PLAN, IT SUPPORTS ITS GOAL TO ATTRACT AND RETAIN TOP QUALITY TALENT THROUGH AN EFFECTIVE PAY SYSTEM. AND WE ABSOLUTELY HAVE TOP QUALITY TALENT AT THE CITY OF PLANO, BAR NONE, IT DOESN'T MATTER IF WE'RE TALKING ABOUT PRIVATE OR PUBLIC SECTOR, WE HAVE THE BEST. COMPENSATION, PHILOSOPHY AND PRACTICE THAT WE FOLLOW. WE WANT TO LEAD THE MARKET COMPETITORS BY MEDIAN PLUS 5%. I KNOW YOU HAVE HEARD THAT PROBABLY QUITE A LOT. WE PROGRESS EMPLOYEES TO THE MIDPOINT OF THE SALARY RANGE WITHIN SIX YEARS. THAT IS THE GOAL. WE USE END-RANGE ADJUSENTS DO THAT SO THAT HOPEFULLY WE DON'T EXPERIENCE COMPRESSION ISSUES VERY OFTEN, AND WE'RE ACTUALLY MOVING PEOPLE THROUGH. SO THAT I DON'T FIND MYSELF 10 YEARS AFTER ARRIVING HERE STILL AT THE BOTTOM OF A PARTICULAR SALARY RANGE. WE HAVE JOB FAMILY PROGRESSIONS THAT WE PUT IN PLACE, AND IT'S VERY WELL MANAGED BY OUR COMPENSATION STAFF IN OUR HUMAN RESOURCES DEPARTMENT. AND THIS ALLOWS US TO MAYBE HAVE AN ACCOUNTANT ONE, AN ACCOUNTANT TWO, A SENIOR ACCOUNTANT. SO PEOPLE CAN GROW, EVEN IF THEY CHOE NOT TO MOVE FROM THEIR PARTICULAR INDUSTRY PROFESSION, IF THEY WANT TO STAY WITHIN THE AREAS THAT THEY'RE WORKING, IF THEY ENJOY THAT, THEY CAN STILL HAVE ROOM FOR GROWTH WITHOUT HAVING TO MOVE TO ANOTHER DEPARTMENT, WITHOUT HAVING TO COMPETE FOR PROMOTION IN ANOTHER POSITION, WE HAVE THAT AS A POSSIBILITY OF GROWTH SO THAT PEOPLE HAVE MULTIPLE OPPORTUNITIES TO CONTINUE TO DEVELOP. AND THEN THERE ARE THOSE PROMOTIONAL OPPORTUNITIES THROUGHOUT THE ORGANIZATION. THIS IS THE WAY, JUST AN EXAMPLE, OF WHAT IT LOOKS LIKE WHEN WE ARE SURVEYING FOR COMPENSATION WIT OUR COMPETITOR CITIES, AND THIS MEDIAN PLUS 5% TO GIVE YOU AN EXAMPLE OF WHAT THAT LOOKS LIKE, ONCE WE HAVE DONE THOSE SURVEYS AND WE'VE BENCHMARKED. AND OUR BENCHMARK DEFINITION WOULD BE THAT WE HAVE TO HAVE AT LEAST A MATCH OF FOUR ENTITIES IN LOOKING AT THAT PARTICULAR POSITION AND DOING THOSE COMPARISONS, THEN WHEN WE IDENTIFY THAT MEDIAN, WHICH HERE WOULD BE THE 35740 IN TERMS OF ANNUAL PAY, THEN WE APLIE THAT 5% TO TRY TO KEEP US ABOVE THE MEDIAN POINT OF THE MARKET. WE'RE N SUGGESTING TO ANYONE, NOT US AS EMPLOYEES, NOT TO YOU ALL, THAT WE ARE EVER LOOKING TO SAY THAT THE CITY OF PLI PLANO PAYS ALL THE HIGHEST PAY ALL THE TIME, IT DOESN'T MATTER. THAT IS NOT WHAT WE'RE SAYING. WHAT WE'RE SAYING IS WE'RE GOING TO COMPARE AT THE MARKET LEVEL AND WHERE WE IDENTIFY THAT MEDIAN FOR OUR BENCHMARK POSITIONS, WE'RE GOING TO STRIVE TO BE 5% ABOVE. WHAT WE'RE GOING TO BE LOOKING AT GOING FORWARD, AND WE'RE REALLY APPRECIATIVE TO OUR CITY MANAGER FOR ALLOWING US TO DO THIS, WE THINK THAT IT'S IMPORTANT THAT WHILE WE HAVE TIME IN OUR SALARY SURVEYS THE THAT WE DO PROBABLY EVERY COUPLE OF YEARS AND THEN WE HAVE COMPARATIVE CITIES THAT WE WORK WITH ANNUALLY AND REGULARLY TO BENCHMARK, WHAT WE'RE LOOKING AT GOING FORWARD IS TO STEP BACK AND DO A COMPENSATION STUDY THAT ALLOWS US TO LOOK AT OUR STRUCTURE, OUR PHILOSOPHY. YOU ALL HAVE TALKED ABOUT EARLIER TODAY ABOUT HOW SOMETIMES IT'S TIME TO JUST GO BACK, IT'S BEEN A WHILE, BEFORE WE'VE LOOKED AT HOW SOME OF THESE THINGS WERE PUT IN PLACE. WE'RE GOING TO DO THE SAME WITH COMPENSATION, PARTICULARLY AS WE LOOK AT THE CHANGE THAT'S HAPPENING SO QUICY IN OUR ENVIRONMENT, HOW COMPETITIVE IT IS RIGHT NOW. I THINK A LOT NOW ABOUT THE EMPLOYEE MARKET BEING MUCH LIKE THE SELLER'S MARKET FOR REAL ESTATE. THERE'S JUST A LOT OF OPPORTUNITY, BUT WE DON'T WANT TO ONLY THINK ABOUT THAT IN TERMS OF COMPENSATION. IT'S NOT JUST ABOUT COMPENSATION. WHEN YOU GO OUT THERE AND YOU LOOK AT THE RESEARCH ON THE GREAT RESIGNATION, YOU CAN ALSO FIND RESEARCH ON THE GREAT REGRET, THE GREAT RESHUFFLING, THE GREAT REIMAGINE, ALL OF THESE THINGS. AND IT ALL COMES DOWN TO THIS VALUE SHIFTING TT WE TEND TO SEE. AND WE IN PLANO TRY REALLY HARD TO MAKE SURE THAT WE'RE LOOKING AT ALL OF THOSE ASPECTS OF EMPLOYMENT AT ALL TIMES. WHEN WE ARE GOING TO THE MARKET AND LOOKING AT OUR SURVEYS, THESE ARE THE CITIES THAT WE SURVEY AGAINST IN THESE DIFFERENT CLASSIFICATIONS. WE ARE GOING TO OVER THIS NEXT YEAR AS WELL, AS WE'RE LOOKING AT THE COMPENSATION STRUCTURE AND THE COMPENSATION PHILOSOPHY, WE'RE GOING TO REEVALUATE WHETHER THESE ARE STILL THE RIGHT CITIES THAT WE WANT TO COMPARE AGAINST. WE WANT TO ALWAYS BE PAYING ATTENTION. AS I LISTEN TO A LOT OF PEOPLE TALKING TODAY ABOUT HOW PLANO TENDS TO FAIR WHEN WE ARE COMPARING OURSELVES TO OTHERS, I WAS REFLECTING ON A MEETING THAT WE WERE HAVING LAST WEEK WITH OUR [INDISCERNIBLE] TRUSTEES AND OUR CONSULTANT ACTUALLY MADE THE STATEMENT, I WROTE IT DOWN, BECAUSE I THINK IT'S SO APPLICABLE TO WHAT PLIEN NO IS HISTORICALLY AND TODAY. SHE SAID PLANO RANKS VERY WELL AS COMPARED TO PEERS. I THINK I HEARD YOU SAY ARE THAT MAYBE TODAY, MR. RICCIARDELLI, AND IT'S TRUE. AND WE TEND TO RANK WELL AS COMPARED TO OUR PEERS MUCH OF THE TIME. AND WHAT I'M BRINGING THAT UP TO SAY IS THAT THERE'S A REASON FOR THAT, BECAUSE WE AS THE EMPLOYEES, WE UNDERSTAND THE EXPECTATION OF EXCELLENCE, WE UNDERSTAND THAT YOU ALL ARE GIVING US RESOURCES AND COMPENSATION AND GUIDANCE TO BE ABLE TO DO THESE THINGS SO THAT WE CAN SERVE WITH EXCELLENCE. AND SO WE HAVE NO INTENTIONS OF NOT EVER FAIRING WELL AND COMPARING WELL WHEN WE GO OUT AND SURVEY AGAINST OTHERS. SO THE CITY OF PLANO SELF-FUNDED HEALTH PLAN ENHANCES COMPENSATION TO SUPPORT EMPLOYEES, RET RETIREES BECAUSE WE DO PROVIDE EMPLOYEE BENEFITS WITH THEIR HOLISTIC HEALTH. AGAIN, WE BRING OUR WHOLESELVES TO WORK AND THEN WE HAVE TO MAKE SURE WE'RE TAKING CARE OF THE WHOLE PERSON. SO THE CITY'S HEALTH PLAN PHILOSOPHY HAS BEEN THIS: TO PROVIDE AFFORDABLE HEALTH COVERAGE FOR EMPLOYEES WHILE ENCOURAGING RESPONSIBLE BEHAVIORS BECAUSE IT IS ABOUT NO JUST THEITY PUTTING IT'S THESE THINGS OUT HERE, I ALSO HAVE TO MAKE HOPEFULLY GOOD HEALTHCARE CHOICES AND CHOICES TO TAKE CARE OF MYSELF, AND QUALITY CARE THAT'S OUTCOME DRIVEN WITH A FOCUS ON PREVENTION. WE HAVE AN EXCELLENCE WELLNESS PROGRAM. WE TRY TO MAKE SURE THAT WE HAVE THE EDUCATION AND THE BENEFIT ACCESS FOR US TO TAKE CARE OF OUR WHOLE SELVES. SO WHY DOES IT MAKE SENSE TO DEDICATE 66% OF BUDGET TO EMPLOYEE SALARIES AND COMPREHENSIVE BENEFITS? FOR ALL THE REASONS THAT I'VE BEEN SAYING THUS FAR, THERE'S A REALLY HIGH RETURN ON THAT INVESTMENT. AND THIS IS JUST A GLIMPSE INTO WHAT IT LOOKS LIKE. WHEN WE LOOK AT PETER DRUCKER'S STATEMENT OF THE MOST VALUABLE ASSET OF A 21ST CENTURY INSTITUTION, WHETHER BUSINESS OR NONBUSINESS WILL BE IT'S KNOWLEDGE WORKERS AND THEIR PRODUCTIVITY. WE UNDERSTAND THAT AS PUBLIC SERVANTS, AS EMPLOYEES OF THE CITY OF PLANO. WE UNDERSTAND THE ASK, WE UNDERSTAND WHAT WE NEED TO DO, AND I'VE HEARD FOR YEARS THAT THE CITY OF PLANO'S EMPLOYEES ARE ITS MOST VALUED ASSETS. IF EVE HEARD THAT IN THIS COUNCIL'S CHAMBER, I'VE READ IT ON DOCUMENTS THAT HAVE COME OUT TO US, I'VE HEARD IT TODAY. AND VALUE AND APPRECIATE THAT. AND THE RETURN ON THAT INVESTMENT OF WHAT YOU ALL GIVE TO US ARE THESE THINGS. AND THIS -- YOU ALL KNOW, THIS IS JUST A FEW. WE HAVE ACCREDITED DEPARTMENTS, WE HAVE PEOPLE THAT ARE HAVING TO MAKE SURE DONE ALL THE TIME.G THE WORK- IS IT A HEAVY LIFT SOMETIMES? ABSOLUTELY, IT'S A HEAVY LIFT SOMETIMES, FOR MANY OF THE REASONS THAT YOU SAID COUNCILMAN GRADY, BECAUSE WE UNDERSTAND THAT WHATEVER DECISIONS ARE MADE IN THIS CHAMBER FOR THIS BUDGET CYCLE, WHETHER IT IS TO TAKE THE TAX RATE DOWN, WHETHERT'S NO NEW TAX RATE, WHETHER IT'S EFFECTIVE TAX RATE, WHETHER IT'S DO MORE, WHATEVER IT IS, WE UNDERSTAND THAT WE HAVE TO GO BACK AND WE HAVE TO DELIVER. AND SOMETIMES, YES, IT'S AN EXTREMELY HEAVY ASK. IT'S A HEAVY LIFT. BUT WE UNDERSTAND THAT WE'LL GET IT DONE. AND WE APPRECIATE THE SUPPORT IN ALLOWING US AND HELPING US TO BE ABLE TO DO THAT. LOCAL GOVERNMENT IS COMPLEX. MANY OF THE THINGS THAT WE DO ARE COMPLEX. THERE IS A CONSISTENT DEMAND FOR EXCELLENCE, SO WHY IS IT IMPORTANT FOR US TO TALK ABOUT PAYING THE BEST SALARIES, MAKING SURE THAT WE HAVE A GREAT BENEFITS PACKAGE? BECAUSE WE HAVE TO HAVE QUALIFIED PEOPLE WHO KNOW THE IMPORTANCE OF EXCELLENCE, TO BE ABLE TO PROVIDE THESE THINGS. WE HAVE 600 DISTINCT JOB TITLES 600. WE DON'T JUST DO ONE THING REALLY WELL, WE DO LOTS OF THINGS REALLY WELL. WE DO THAT UNDER THE CONSTANT PUBLIC SCRUTINY, BECAUSE WE UNDERSTAND THAT WE CAN BE CALLED UPON TO ANSWER FOR WHATEVER IT IS THAT WE'RE DOING AT ANY GIVEN TIME. AND WE WILL SMILE SWEETLY AND WE WILL RESPOND. THESE ARE THE KINDS OF THINGS THAT WE UNDERSTAND TO BE WHAT WE ARE IN PLACE TO PROVIDE. THERE ARE REQUIREMENTS FOR ONGOING CONTINUING EDUCATION DEVELOPMENT, WE HAVE SUBJECT MATTER EXPERTISE, WE HAVE TO ADAPT ALL THE TIME, WE HAVE COME CLIE ANSWER WITH CODES, POLICIES, THE LEGISLATIVE CHANGES, AND WE UNDERSTAND WE HAVE TO GET IT DONE. THESE ARE SOME OF THE POSITIONS THAT WE HAVE OPEN RIGHT NOW, SO SOME OF THIS IS KIND OF SHAMELESS MARKETING, I DID PUT THE -- JUST USE THAT LINK AND YOU, TOO, MAY APPLY. THESE ARE SOME OF THE PUT THIS UP HERE TO SHOW THE BREADTH OF POSITIONS AND OPPORTUNITIES. WHEN, YOU KNOW, WE TALK TO YOUNGER PEOPLE OR EVEN PEOPLE LOOKING FOR A PLACE TO HAVE A STABLE CAREER WHERE THEY CAN GROW, WHERE IT CAN BE A GREAT EMPLOYMENT EXPERIENCE, THESE ARE SOME OF THE JOBS THAT I WANT PEOPLE TO UNDERSTAND THAT THEY CAN COME HERE AND DO. MAYBE WE SEE THE WATER, WE SEE THE TRASH TRUCKS, WE SEE THE FIRE ENGINES, WE SEE THE POLICE, BUT MAYBE WE DON'T KNOW THAT IF YOU WANT TO BE ANAEROBICS INSTRUCTOR, COME ON OVER. WE CAN MAYBE LINS YOU KNOW, ALL OF THESE THINGS ARE OPPORTUNITIES FOR A GREAT CAREER OPPORTUNITY AT THE CITY OF PLANO. HOW DOES PLANO MAINTAIN THE COMPETITIVE ADVANTAGE THAT WE'VE BEEN TALKING ABOUT ALL DAY? WE ARE COMMITTED TO REGULAR REVIEW AND ANALYSIS AND MANAGEMENT OF OUR COMPENSATION PLAN, OF OUR BENEFITS PLAN, REGARDLESS OF WHAT'S GOING ON. THERE MAY BE AN ECONOMIC DOWNTURN OR THERE MAY NOT, THERE MAY BE A PANDEMIC OR THERE MAY NOT. WHAT I'M SAYING HERE IS THAT IT DOESN'T MATTER, WE OR GOING TO BE DOING THE SAME THINGS. IT'S THE CONSISTENCY OF WHAT WE DO THAT MAKES THE DIFFERENCE, REGARDLESS OF THOSE EXTERNAL PRESSURES. IT'S CONTEXT WALLACE WELL. TEXTUAL AS WELL. WE WERE LOOKING AT SOMETHING RECENTLY, IT WAS AN ARTICLE FROM A NEIGHBORING CITY, THEY HAD DONE THIS, IT WAS GREAT FOR THEM, WE'RE PAYING HIGHER RATES FOR PAY AND WE'VE ADDED ALL OF THESE BENEFITS. SO ANDREA AND I SAT DOWN WITH THAT LIST, AND GUESS WHAT? IT'S WONDERFUL THAT THEY'VE ADDED THEM, BUT WE'VE HAD THEM FOR A REALLY LONG TIME. SOMETIMES WE CAN GET CAUGHT UP IN THE HEADLINES. OH, MY GOSH, THEY'RE DOING THAT. WE ARE PAYING ATTENTION ALL THE TIME, WE ASSURE YOU. BUDGET ALLOCATIONS THAT SUPPORT EMPLOYEE RETENTION AND DEVELOPMENT, OUR BUDGET DEPARTMENT, YOU ALL MAKE SURE TH. CITY OF PLANO EMPLOYEES CAN NEVER LEGITIMATELY COMPLAIN ABOUT NOT HAVING THE RESOURCES THAT WE MADE, BECAUSE WE GET THOSE RESOURCES AND WE APPRECIATE YOU PROVIDING THEM TO US. SO ALL OF THESE THINGS TOGETHER HELP US TO MAINTAIN THAT COMPETITIVE ADVANTAGE. IF WE LOOK AT THE SALARY INCREASES THAT COUNCILS HAVE PROVIDED OVER THE LAST MANY YEARS, AND WE WANTED TO LOOK AT THIS. THERE'S A LOT OF DISCUSSION RIGHT NOW ABOUT INFLATION AND MY -- MY SORT OF WAY THAT I'VE MEASURED THIS, AND IT'SERY MUCH INFORMAL, WHEN I DRIVE TO WORK EACH DAY, I PASS BY A RACETRACK SO I CAN SEE THE GAS PRICES. AND THEN A COUPLE OF BLOCKS DOWN, I PASS BY A STARBUCKS. AND I WILL TELL YOU, AT MY NEIGHBORHOOD STARBUCKS, THE GAS PRICES HAVE NOT IMPACTED THE LENGTH OF THE LINES IN THE DRIVE-THRU STARBUCKS. THEY ARE ABOUT 14 DEEP. I DON'T SAY THAT TO MINIMIZE ANYTHING OR ANY CHOICES, I'M JUST SAYING, THE CITY OF PLANO, REGARDLESS OF WHAT'S BEEN GOING ON WITH THE C. PCHT I CHANGES A LET M JUST SAY, AT THAT 5.24 UP THERE, THAT WAS A LOOKBACK FROM JANUARY OF EARLIER THIS YEAR, WE KNOW THAT IT'S ABOUT 8.5 RIGHT NOW, BUT THAT WAS A GLIMPSE IN TIME. SO WHAT THIS INDICATES IS THAT, AGAIN, REGARDLESS OF EXTERNAL PRESSURES AND WHAT'S GOING ON, THE CITY OF PLANO HAS DONE A PHENOMENAL JOB OF MAKING SURE THAT WE ARE TAKING CARE OF EMPLOYEES. YOU ALL HAVE ALLOWED AND COUNCILS BEFORE YOU HAVE ALLOWED US TO ACKNOWLEDGE THE VALUE OF EMPLOYEES AND THE WORK THAT WE DO AND THE EXPERTISE THAT WE BRING TO THE TABLE THROUGH THESE SARY ADJUSTMENTS OVER THE YEARS. SO WE CAN SEE THAT WE HAVE BEEN SUBSTANTIALLY AHEAD IN ALL YEARS PRIOR TO THIS YEAR. SO JUST A LITTLE GLIMPSE INTO WHAT OUR WORKFORCE LOOKS LIKE. THE AVERAGE TENURE, IF WE INCLUDE FULL-TIME AND PART-TIME FOR EMPLOYEES AT THE CITY OF PLANO'S 8.4 YEARS. AVERAGE FULL-TIME TENURE, 10.65 YEARS. AS I WAS LOOKING AT THE BUREAU OF LABOR STATISTICS RECENTLY FOR LOCAL GOVERNMENT EMPLOYEES, THEIR NUMBER -- AND OF COURSE THEY'RE LOOKING AT A MUCH BROADER BAND, THEIR NUMBER WAS 6.6 YEARS. SO I THINK THAT SSOMETHING WITH US HAVING THE 10.65 YEARS. I WOULD LIKE TO THINK THAT IT'S FOR A LOT OF THE REASONS THAT WE'VE TALKED ABOUT TODAY, THAT THERE IS A REASON THAT PEOPLE WILL WANT TO COME AND THAT PEOPLE WILL WANT TO STAY. YOU CAN SEE WHERE THE AVERAGE FULL-TIME PAY HAS ADJUSTED OVER THE YEARS AS WELL. OUR INSURANCE PREMIUM INCREASES THERE, HAVE BEEN NONE SINCE 2015. WE ARE PROPOSING ONE FOR THIS YEAR. AND WE PAID A LOT OF ATTENTION AND WORKING COLLABORATIVELY WITH THE CITY MANAGER'S OFFICE WITH FINANCE AND BUDGET TO MAKE SURE THAT WE WERE COGNIZANT OF THE IMPACT THAT IT WOULD HAVE, NOT ONLY ON THE EMPLOYEE ONLY COST BUT EMPLEMPLOYEES AND DEPENDENTS, EMPLOYEES AND SPOUSES AND WE THINK THAT $4 PER PAY PERIOD WAS VERY REASONABLE PARTICULARLY WHEN WE HAVE NOT HAD TO PASS ANY OF THAT ON PREVIOUS YEARS. WHY IS THE EMPLOYEE BENEFITS PACKAGE AN IMPORTANT COMPONENT OF OVERALL COMPENSATION? IT SUPPORTS EMPLOYEES, THEIR FAMILIES, OVERALL WELLNESS AND IT SHAPES THE FINANCIAL FUTURE IN TERM TS OF THE DECISIONS WE CAN MAKE FOR OURSELVES. THE CITY OF PLANO REALLY WORKS TO PAY A COMPETITIVE SALARY TO ALLO US THEN TO B ABLE TO MANAGE OUR LIVES APPROPRIATELY. AGAIN, WE'RE NOT SAYING THAT WE'RE ALWAYS GOING TO BE THE HIGHEST PAY, BUT WE ARE GOING TO BE ATTENTIVE TO ARE WE PAYING PEOPLE A WAGE THAT ALLOWS THEM TO LIVE THEIR LIVES AND RESPECTS THE EXPERTISE THAT THEY BRING TO THE TABLE, AND IS REASONABLE FOR THE ASK FROM OUR CITIZENS IN TERMS OF FUNDING NEEDS. SO WHY DOES THE CITY OF PLANO CARE ABOUT COMP AND BENEFITS? FOREALL THOSE REASONS. RECRUITMENT RETENTION THE PERFORMANCE THAT WE'RE ABLE TO GIVE THE EXCELLENCE SERVICE THAT OUR CIZENS REQUEST, ATTENTION TO A EMPLOYEE'S PROFESSIONAL WELLNESS AND DEVELOP, ALL OF THOSE THINGS, IT'S AN A WHOLE-PERSON CONCEPT, ENHANCED INTERNAL AND EXTERNAL ENGAGEMENT TO MAKE SURE THAT OUR INTERPERSONAL AFFAIRS ARE IN ORDER. POSITIVE ORGANIZATION AGRICULTURE AND WORK ENVIRONMENT, WHEN YOU LOOK AT THE DEFINITION, IT SPEAKS TO HOW PEOPLE FEEL WHEN THEY'RE AT WORK. WE WORK REALLY HARD TO TRY TO MAKE SURE THAT THE EMPLOYMENT EXPERIENCE IS A POSITIVE ONE, THAT PEOPLE CAN HAVE. THERE IS A FULL VALUE PROPOSITION THE CITY PROVIDES ALL OF TSE THINGS, I'M NOT GOING TO GO INTO DETAIL, YOU CAN SEE THEM THERE, BUT THERE'S A LOT OF ATTENTION TO MAKE SURE THAT THERE IS A TOTAL CONCEPT THAT ADDRESSES THE WHOLE PERSON. THIS IS THE EIGHT DIMENSIONS OF WELLNESS THAT THE CITY ACTUALLY SUBSCRIBES TO. AND WE PAY A GREAT DEAL OF ATTENTION TO THAT, BECAUSE WE DO VALUE THE WHOLE PERSON. FOR EMPLOYEES TODAY, JOB SATISFACTION IS ABOUT MUCH MORE THAN JUST PAY AND BENEFITS. NEW HIRES ARE INCREASINGLY LOOKING FOR COMPANIES THAT AFFIRM THEIR VALUES, THERE IS THE VALUE SHIFTING AND PEOPLE DON'T MIND ASKING FOR IT AT THIS POINT. SO, YES, WEANT TO PAY WELL, BUT BEYOND THE PAY, WE WANT TO MAKE SURE THAT PEOPLE FEEL A SENSE OF VALUE, THAT WE'RE GIVING PEOPLE WHAT THEY NEED. THAT PEOPLE CHOOSE TO BE HERE. PEOPLE WILL ALWAYS HAVE MORE CHOICES, AND CULTURE -- THE PLANO CULTURE WILL NOT BE A FIT FOR EVERY ONE, BUT FOR THOSE THAT ARE LOOKING FOR THIS CULTURE, WE WANT THEM TO COME AND WE WANT THEM TO STAY. WHETHER WE'RE TALKING ABOUT NEW HIRE ORIENTATION OR THROUGHOUT RETIREMENT BECAUSE WE DO OFFER RETIREMENT BENEFITS, IT'S THE STRATEGY, IT'S THE COMMITMENT, IT'S THE EXECUTION THAT WE PROVIDE AS PUIC SERVANTS AND IT'S THE CONTINUITY OF WHAT WE DO. WE DON'T WAIT UNTIL SOMETHING GOES WRONG. WE DON'T WAIT UNTIL THERE'S SOME SIGNIFICANT, YOU KNOW, THING IN THE COMMUNITY THAT TELLS US THAT WE MUST PAY ATTENTION. WE'RE PAYING ATTENTION ALL THE TIME, AND THIS IS WHY PLANO'S PLANO AND THIS IS WHY WE'RE THE CITY OF EXCELLENCE, AND WE LIVE THOSE VALUES. AND OVER THERE ON THE RIGHT, IT'S -- WE'RE IN THE BOAT TOGETHER. AND REMEMBERS OF THE EXECUTIVE TEAM WHERE WE RECENTLY READ THIS BOOK AND TALKED ABOUT THIS, WE TALKED ABOUT BEING IN THE BOAT TOGETHER AND WHAT ARE THE EXPECTATIONS OF BEING IN THE BOAT TOGETHER. IT'S NOT JUST ABOUT CALLING OURSELVES A TEAM, IT'S ABOUT BEHAVING AS A TEAM ALL THE TIME. SO THAT -- ALL OF THAT JUST TO SAY THAT THE NUMBERS THAT KAREN GIVES YOU, THIS IS WHAT WE DO WITH THOSE NUMBERS WHEN YOU PROVIDE US THAT 66.3%, THIS IS WHAT WE DO TO EARN YOUR TRUST, TO EARN YOUR SUPPORT, TO PROVIDE THE EXCELLENT SERVICES TO OUR CITIZENS IN OUR COMMUNITY AND HAT IS IT. >> Mayor Muns: THANK YOU, LASHAUN. THAT WAS FANTASTIC. >> Ross: THANK YOU. >> Mayor Muns: COUNCILMEN RICCIARDELLI. >> Ricciardelli: THANK YOU FOR YOUR PRESENTATION AND THE GREAT WORK YOU'RE DOING. I HAD A COUPLE OF QUESTIONS. THAT FIRST $4 PER PAY PERIOD INCREASE ON THE EMPLOYEE HEALTH PREMIUM, DO YOU KNOW WHAT THAT IS ON A PERCENTAGE BASIS? >> Ross: ANDREA, 15%. IT'S GOING FROM 54 TO 61 FOR THE EMPLOYEE ONL AND THEN THERE ARE CHANGES IF I HAVE MY SPOUSE, IF I HAVE DEPENDENTS AND IF THERE'S FAMILY. >> Ricciardelli: OKAY. >> Ross: SO, YES, 15. >> Ricciardelli: THANK YOU FOR THAT INFORMATION AND THE REASON I ASKED IS I WANTED TO MAKE SURE -- YOU KNOW, WE HAVEN'T ADJUSTED IT SINCE 2015, AND I COMPLETELY SUPPORT. YOU CAN'T HOLD IT THE SAME DOLLAR NUMBER FOREVER, LIKE THE CONVERSATION THAT WE WERE HAVING EARLIER REGARDING THE NO NEW REVENUE RATE FOREVER, NOTHING LASTS FOREVER, BUT, YOU KNOW, I WANTED TO MAKE SURE THAT IT WAS, YOU KNOW, BELOW INFLATION SINCE 2015, WHICH IT SOUNDS LIKE IT IS, SO THAT'S IN LINE. AND THEN ON THE SENSE OF VALUE THAT YOU MENTIONED, YOU KNOW, I THINK EVERYONE ON THE COUNCIL TREMENDOUSLY VALUES THE CITY'S EXCELLENT EMPLOYEES. AND ONE WAY THAT WE SHOW THAT IS BY ADHERING TO THE MEDIAN PLUS 5 COMPENSATION PHILOSOPHY, BUT WHAT ELSE CAN WE DO? ARE THERE MORE INTANGIBLE STEPS THAT COUNCIL COULD TAKE TO SHOW HOW TREMENDOUSLY MUCH WE VALUE THE CITY'S EXCELLENT EMPLOYEES? >> Ross: I REALLY THINK -- AND THIS IS -- I REALLY THINK THAT THE MOST IMPORTANT THINGS THAT CAN HAPPEN ARE TO LISTEN AND ENGAGE WITH AND QUESTION IN A WAY THAT EMPLOYEES CAN HEAR THE QUESTIONS AND KNOW THAT THEY ARE BEING HEARD AS WELL. I THINK IT'S IN THE HOW, MR. RICCIARDELLI. I THINK IT'S IN HOW WE -- WE'RE INTERACTED WITH, HOW WE'RE MADE TO FEEL THAT, OKAY, IN FACT, IS MY EXPERTISE VALUED. AND I THINK IT'S IN HOW IT'S DONE. I CANNOT SAY THAT WE NEED SOMETHING IN TERMS OF RESOURCES THAT WE DON'T HAVE. AND IF WE DO NEED THOSE THINGS, YOU'LL SEE THEM IN THE BUDGET, AND THERE WILL BE AN ASK. I THINK IT'S IN HOW WE -- HOW WE FEEL WHEN WE'RE HERE AT THIS PODIUM, HOW WE'RE ACKNOWLEDGED, HOW WE'RE REQQUESTIONED, AND ARE WE GIVEN THE TIME TO BE ABLE TO RESPOND. IT'S IN THE VALUE PROPOSITION IN TERMS OF HOW THAT VALUE IS DEMONSTRATED WHEN WE'RE INTERACTED WITH. >> Ricciardelli: WELL, THANK YOU VERY MUCH FOR THAT FEEDBACK, LASHAUN, AND ON THAT NOTE, I'M SURE THAT'S NOT SOMETHING THAT EMPLOYEES ARE NECESSARILY GOING TO EXPRESS WITH THEIR NAME ON IT, BUT MAYBE IF THERE WAS AN OPPORTUNITY FOR AN NONMOUSE FEEDBACK ABOUT THE COUNCIL, I'D BE INTERESTED ON FEEDBACK ABOUT MYSELF INDIVIDUALLY, IF THERE'S ANYTHING WE CAN DO DIFFERENTLY TO MAKE SURE EMPLOYEES FEEL VALUED, I'D WANT TO KNOW THAT. >> Ross: I THINK WE APPRECIATE THE QUESTION AS WELL. >> Ricciardelli: THANK YOU, LASHAUN. I APPRECIATE THAT. >> Mayor Muns: DEPUTY MAYOR? >> YES. SO I HAVE A COUPLE COMMENTS, LASHAUN. I'M A SMALL BUSINESS PERSON AND I RECENTLY HAVE HAD SOME TURNOVERS IN MY EMPLOYEES BECAUSE THERE'S JUST SO MUCH COMPETITION OUT THERE. AND WHAT I'VE NOTICED IS THAT I SPENT NOT JUST MONEY, BUT TIME AND ENERGY TRYING TO TRAIN A BRAND-NEW PERSON AND, YOU KNOW, I'M PAYING THE SAME AMOUNT OF MONEY AND PROBABLY MORE OF MY TIME JUST TO TRAIN. AND I END UP DOING MORE WORK BECAUSE THE PERSON CAN'T TAKE OVER WHAT MY PREVIOUS EMPLOYEE HAS DONE. TU. SO THAT SHOWS CONTINUITY, THAT'S THE COMFORT ZONE THAT WE NEED IN PLANO IN ORDER TO MAKE SURE IT CONTINUES TO OPERATE IN ITS EXCELLENCE IN SERVICES. AND ONE THING I DO WANT TO ADDRESS WITH REGARD TO ANTHONY'S QUESTIONS ABOUT, YOU KNOW, HOW WE CAN MAKE THE EMPLEES FL THEY'RE REALLY NEED, WELL, I THINK MUTUAL RESPECT IS ABSOLUTELY IMPORTANT. WHEN THE CITY MANAGER IS HERE MAKING A PRESENTATION, I'M'M'M'M REPRESENTING ALL 2400 OF OUR CITY EMPLOYEES, RIGHT? I MEAN, HE'S NOT JUST MAKING WORDS AND SPEAKING ON HIS OWN BEHALF, BUT I THINK HE'S DOING SO ON BEHALF OF OUR CITY STAFF. AND I THINK SHOWING RESPECT TO THE CITY BY SHOWING RESPECT TO WHAT OUR CITYANAGER'S RECOMMENDING IS PROBAY ONE OF THE WAYS OF TELLING OUR MEMBERS -- OUR EMPLOYEES IN THE CITY THAT WE REALLY DO BELIEVE AND RESPECT AND HONOR EVERYTHING THAT Y'ALL DO. IT DOESN'T REFLECT IN MONEY, IT DOESN'T REFLECT IN, YOU KNOW, THE BENEFITS, BUT I THINK A LOT OF TIMES IT'S THE HONOR, IT'S THE INTEGRITY, IT'S THE RESPECT THAT WE GIVE TO PEOPLE THAT ACTUALLY MAKE PEOPLE WANT TO STAY. >> Ross: ABSOLUTELY. >> Tu: SO -- AND I JUST WANTED TO SHARE THAT, BECAUSE I THINK, YOU KNOW, IF -- YOU KNOW, IF THERE'S ANYTHING ELSE THAT WE CAN DO, PROBABLY THAT IS ONE THING I THINK WE NEED TO ALL WORK ON IN JUST SHOWING MUTUAL RESPECT FOR EACH OTHER. THANK YOU SO MUCH. >> Mayor Muns: COUNCILMEMBER HOLMER? >> Holmer: WELL, FIRST, MRS. ROSS, I BELIEVE THIS IS THE FIRST TIME YOU'VE COME TO COUNCIL SINCE YOU CAME OUT OF RETIREMENT, IS THAT CORRECT? >> Ross: IT IS. >> Holmer: SO I JUST WANT TO SAY HOW LUCKY I FEEL THAT THE CITY OF PLANO IS THAT YOU DECIDED TO RETURN. >> Ross: THANK YOU. >> Holmer: AND HOW LUCKY ALL OF THE EMPLOYEES IN PLANO TO HAVE YOU SETTING THE TONEND BEG AN ADVOCATE AND A CHAMPION FOR ALL OF THE EMPLOYEES IN PLANO. SO THANK YOU. WE'RE SO HAPPY TO HAVE YOU BACK. >> Ross: THANK YOU SO MUCH. >> Holmer: A COUPLE QUESTIONS. >> Ross: YES. >> Holmer: THE SELF-FUNDED INSURANCE, IS IT 100% SELF-FUNDED OR DO WE HAVE ANY STOP GAP INSURANCE IN PLACE? >> Ross: WE HAVE STOP-GAP MEASURES, WE HAVE OTHER INSURANCES THAT WILL KICK IN AT CERTAIN THRESHOLDS IN TERMS OF HIGH-DOLLAR CLAIMS AND SO YES, WE DO HAVE THOSE FAIL SAFES IN PLACE. WE HTHERE IS A LOOK AT ALL TIMES IN TERMS OF DECISIONS THAT WE'RE MAKING, WHAT IS THE FUND BALANCE, WHAT SHOULD THIS LOOK LIKE AND YES. >> Holmer: OKAY. I ASSUMED THAT WAS THE CASE, BUT I JUST WANTED TO CONFIRM THAT. AND THEN SECONDLY, THANK YOU FOR PUTTING THOSE JOB POSTS OUT THERE. I JUST HAD COFFEE YESTERDAY WITH SOMEONE WHO WANTS THEIR DAUGHTER TO GET A JOB AND SHE LOVES ANIMALS. IS THERE A MINIMUM AGE FOR THAT KENNEL ATTENDANT POTION? DO YOU HAVE TO BE 18? >> YES, IT IS 18. >> Ross: IT'S NOT LISTED, BUT 18. >> Holmer: OKAY. GOOD TO KNOW. THANK YOU. >> MAYOR AND COUNCIL, THANK YOU, LE SEAN, AS COUNCIL CAN SEE THAT THE PASSION, THE KNOWLEDGE, EVERYTHING THAT LASHAUN BRINGS TO THE TABLE WE'RE EXTREMELY FORWARD TO HAVE HER BACK. SHE'S NOT ALLOWED TO LEAVE AGAIN BY THE WAY. JUST A RULE THAT WE HAVE IN PLACE, BUT I ALSO WANTED TO TAKE A QUICK MOMENT WHILE WE TALK ABOUT OUR EMPLOYEES BEING OUR GREATEST ASSET, I ASKED ALL OF OUR EXECUTIVE TEAM MEER ALL OUR DEPARTMENT HEADS AND EVERYBODY ELSE TO BE HERE TODAY SHOULD THERE BE A QUESTION, AND I JUST WANTED TO RECOGNIZE THAT THAT'S WHERE EXCELLENCE HAPPENS. THEY'RE THE ONES THAT MAKE SURE EVERYTHING GETS DONE DAY IN AND DAY OUT, AND I TRULY DO HAVE THE BEST TEAM IN THE NATION. SO I'LL PUT THEM UP AGAINST ANYBODY. . [APPLAUSE] >> Mayor Muns: THANK YOU, LASHAUN. APPRECIATE IT. NOW WE HAVE CHIEF DRAIN REGARDING AN AD DIGHTS L SCHOOL RESOURCE OFFICER. >> GOOD MORNING, MAYOR AND COUNCIL. BEFORE I TALK ABOUT THIS SLIDE BECAUSE IT RELATES TO FRISCO ISD, I ALSO WANT TO GIVE YOU A QUICK UPDATE ON WHAT'S GOING ON WITH PISD, SINCE THEY HAVE A LOT MORE SCHOOLS. AFTER UVALDE, OF COURSE, THERE WAS A CALL FOR MORE LAW ENFORCEMENT OFFICERS IN OUR SCHOOLS, SO WE'VE GOT OUR MIDDLE SCHOOLS COVERED WITH SROS, OUR HIGH SCHOOLS AND OF COURSE WE HAVE TWO OFFICERS AT OUR SENIOR HIGH. SO THE GAP IS AT OUR ELEMENTARY SCHOOLS, AND SO THERE WERE A COUPLE OF OPTIONS WE COULD HAVE LOOKED AT. ONE WAS TO PLACE AN OFFICER IN EACH ONE OF OUR SCHOOLS FOR PISD, THAT WOULD HAVE BEEN 34 SCHOOLS, 38 IF YOU COUNT THE EARLY LEARNING CENTERS, OR ANOTHER MODEL COULD BETHAT WE WOULD HAVE ONE OFFICER PATROL THE FEEDER SCHOOLS, WHICH IS WHAT FRISCO IS DOING, THAT GO INTO THAT SCHOOL. AND THAT WOULD HAVE REQUIRED ROUGHLY 13 OFFICERS, NEITHER ONE OF WHICH WE COULD HAVE STARTED THIS YEAR. IT'S JUST TOO MANY. WE WOULDN'T BE ABLE TO PUT THAT MANY OFFICERS OUT THERE. SO THE PLAN THAT WE OFFERED 2PISD WAS TO HAVE OUR REGULAR PATROL OFFICERS OUR BEAT OFFICERS TO GO VISIT THAT ISIT BUT T DO DOOR NOT JUST TO CHECKS, W WALK THROUGH THE SCHOOL, MAKE SURE THEY UNDERSTAND EVERYTHING. PISD WAS GOOD WITH THAT, AND THEN THAT DOESN'T HAVE A BUDGET IMPACT BECAUSE THOSE OFFICERS ARE ALREADY OUT THERE. WE'RE ASKING -- WE'RE COUNTING THAT AS A CALL FOR SERVICE. WE'LL LOOK AT HOW MUCH TIME THAT TAKES AND IF THAT DOES HAVE A BUDGET IMPACT, WE'LL PICK THAT UP IN OUR STAFFING MODEL COME NEXT BUDGET YEAR. BUT THAT WOULD REQUIRE MORE PATROL OFFICERS, NOT MORE SROS IF WE DO THAT. IN THE CASE OF FRISCO ISD, WHAT THEY'RE DOING IN THEIR CITY IS THEY ARE GOING TO FEEDER SCHOOL ROUTE, SO ACTUALLY IN THEIR CITY, THEY'RE ONLY GOING TO HIRE THREE OFFICER TO COVER DOWN ON ABOUT ROUGHLY 30 SCHOOLS, SO EACH OFFICER WILL HAVE ABOUT 10 OR 11 SCHOOLS EACH. IN OUR CITY, THEY HAVE FOUR ELEMENTARY SCHOOLS AND THEN THEY HAVE ONE MIDDLE SCHOOL. SO WE HAVE AN OFFICER AT THEIR MIDDLE SCHOOL ALREADY. WE WANT TO BRING ON ONE OFFICER THAT WOULD COVER THOSE FOUR ELEMENTARY SCHOOLS AND ACTUALLY WHAT HAPPENED WAS FRISCO ISD CAME TO US RELATIVELY LATE IN THE BUDGET CYCLE. I FOUND OUT THAT THEY WANTED THIS OFFICER AFTER MARK HAD ALREADY BRIEFED YOU ON THE COUNCIL AND I TOLD YOU, I SAID IT'S TWO LATE I'M NOT GOING TO ASK MY BOSS FOR ANYTHING NOW. THEY CAME BACK AND SAID, WELL, WE WILL COVER THE COST 100%. I SAID, WELL, MAYBE I WILL GO TO MY BOSS, AND SO I DID. AND SO THEY ARE COVERING THE COST 100% FOR THIS UPCOMING SCHOOL YEAR, AND THEN WE WILL PICK UP THE COST 50/50 SPLIT LIKE WE TYPICALLY DO NEXT SCHOOL YEAR. SO I JUST WANTED TO MAKE YOU AWARE, THERE IS NO BUDGET IMPACT NEXT YEAR BUT THERE WILL BE A BUDGET IMPACT GOING FORWARD. ANY QUESTIONS? >> Mayor Muns: CHANGES, CHIEF. ANY QUESTIONS FOR CHIEF? I LOVE PROPOSALS THAT ARE 100% FUNDED. KEEP THEM COMING. BRILLIANT. COMMUNITY INVESTMENT PROGRAM? MAYOR AND COUNCIL, THIS IS AN OPPORTUNITY FOR ANY QUESTIONS THAT YOU MIGHT HAVE ON THE COMMUNITY INVESTMENT PROGRAM. AND FOLLOWING THIS ONE IS ACTUALLY THE OPERATING BUDGET. SO AS I MENTIONED, ALL OF EXECUTIVE TEAM IS HERE, KAREN'S HERE, WE'VE BEEN THROUGH A LOT OF INFORMATION. Y'ALL HAVE HAD THE CHANCE TO LOOK AT THIS FOR OVER A WEEK, SO IF THERE IS ANY DIRECTION THAT COUNCIL WANTS TO GIVE US OR ANY QUESTIONS, THIS IS THE OPPORTUNITY TO ASK THOSE QUESTIONS OR MAKE THOSE COMM COMMENTS. >> Mayor Muns: TELLS YOU THOUSAND THOROUGH Y'ALL HAVE BEEN FOR THIS GROUP NOT TO SPEAK UP AT THIS POINT IS PRETTY IMPRESSIVE. DO YOU WANT TO MOVE ON TO THE PROPOSED AD VALOR REM TAX RATE. >> Isrealson: YES, SIR, MAYOR. I THINK AT THAT POINT KAREN AND I WOULD PREFER WE HAVE THAT DIRECTION SO WE CAN PREPARE EVERYTHING WHEN WE'RE HAVING THE NEXT TWO PUBLIC HEARINGS. WE'RE NOTEQUIRED TO, BUT WEE HAVE TRADITIONALLY HAD THOSE AND HAD VERY LITTLE PARTICIPATION, BUT FOR US IT WOULD HELP US TO MOVE FORWARD. >> IT WOULD REALLY HELP US. WHAT WE CAN DO, AND I'M HOPING WE DO HAVE DENTON BY THEN, WE COULD BRING YOU BACK -- BECAUSE SOME OF THE MONEY WILL BE TAKEN OUT, WELL, WE DON'T NEED AS MUCH AS WHAT WE PREVIOUSLY THOUGHT IN THE CAPITAL MAINTENANCE FUND. AND THEN WE CAN GO APPLY ALL THE SALES TAX EXTRA AND BRING YOU BACK NEW FUND SUMMARIES TO SHOW YOU WHAT YOU WOULD BE ADOPTING ON SEPTEMBER 12TH. >> Mayor Muns: OKAY. COUNCILMAN SMITH IF YOU HAVE ANY REMARKS. >> Smith: I'M GOOD TO GO. >> Isrealson: GOOD TO GO THAT YOU WANT THE NO NEW REVENUE RATE OR -- >> Smith: I'M SORRY. YES, SIR, YOU DID A GREAT JOB. I WILL NOT TAKE THAT AWAY FROM YOU. >> Mayor Muns: COUNCILMEMBER HOLMER? >> Holmer: I'M IN SUPPORT OF THE NO NEW REVENUE RATE AS WELL. >> Williams: I'M ALSO IN SUPPORT OF THE NO NEW REVENUE RATE AND IT MIGHT COME AS A SURPRISE TO HEAR THAT I AGREE WITH COUNCILMAN GRADY AND MARK THAT IT IS UNSUSTAINABLE, SIMPLE MATH TELLS US THIS. IF YOU DON'T INCREASE YOUR TAX BASE, EITHER PROPERTY TAX OR SALES TAX SUFFICIENT TO ACCOUNT FOR INFLATION, WHICH HAS NOW SPIRALED OUT OF CONTROL, YOU CAN'T SUSTAIN THAT. YOU WILL HAVE TO EVENTUALLY CUT SERVICES. I THINK IN LIGHT OF WHAT'S HAPPENED IN RECENT YEARS, THE PANDEMIC, THE AFOREMENTIONED OUT OF CONTROL INFLATION AND THE FACT THAT WE HAD HAD SEVERAL TAX INCREASES THE FEW YEARS PRIOR, I THINK THAT PUTS US IN A POSITION WHERE I THINK IT'S NOT ONLY POSSIBLE, BUT RESPONSIBLE, BUT THAT CANNOT CONTINUE IN PERPETUITY. AND I ALSO -- I'M SORRY, I ALSO THINK -- I TOUCHED ON THIS ON MONDAY'S MEETING, BUT WE'RE SPENDING A LOT RIGHT NOW ON INFRASTRUCTURE UPDATES. PAID FOR WITH OUR BONDS, BUT BECAUSE PLANO IS AGING, I FORESEE A TIME IN THE VERY NEAR FUTURE WHERE WE'RE GOING TO HAVE TO INCREASE OUR MAINTENANCE SPENDING ON THAT INFRASTRUCTURE ON AN ANNUAL BASIS. AND SO MAYBE, MARK, YOUR FINANCIAL FORECAST INCLUDES IS PLAN, BUT I'D LIKE TO SEE HOW WE CAN PAY FOR SOME OF THESE THINGS THAT WE'RE CURRENTLY USING BONDS TO FINANCE OPERATIONALLY BECAUSE CURRENTLY WE'RE BUDGETED TO SPEND $20 MILLION JUST ON SERVICING OUR DEBT -- JUST THE INTEREST PORTION OF OUR DEBT. AND THAT'S $20 MILLION THAT COULD GO TOWARD A LOT OF THINGS, INCLUDING OUR ROADS. LASTLY AS PART OF THAT, I'M SURE WE ARE ALL PAINFULLY AWARE THAT WATER AND SEWER NOW MAKE UP THE LARGEST PORTION OF OUR BUDGET ECLIPSING PUBLIC SAFETY. SO I'D LIKE TO SEE AS PART OF THAT ROADMAP, THAT FIVE-YEAR ROADMAP INCLUDING OUR WATER AND SEWER IN THAT, I KNOW WE HAVE A PARTS MASTER PLAN, WE HAVE A TRANSPORTATION PLAN, I KNOW WE HAVE AN EYE TOWARD THE PARTS OF OUR WATER AND SEWER INFRASTRUCTURE THAT NEEDS HELP BUT I'M UNAWARE IF WE HAVE A MASTER PLAN THAT WE CAN FOCUS ALL OF THIS TOWARD ALONG WITH EVERYTHING ELSE. >> Isrealson: I THINK WE PROBABLY HAVE THE IDEA OF THAT IN THAT MAN'S HEAD RIGHT THERE, BUT WE WILL BRING THAT FORWARD AS PART OF THE FINAIAL PLAN IS THOSE UTILITY RATES AS WELL. THAT WAS PART OF THE INTENTION WITH THAT. >> Williams: AND THE ASSOCIATED INFRASTRUCTURE UPKEEP. >> Isrealson: ABSOLUTELY. >> Tu: SO AT THE NEXT YEAR'S BUDGET WORKSHOP, I WANT THE STAFF TO PLEASE CUT OUT WHAT COUNCILMAN WILLIAMS ALREADY SAID ABOUT THIS UNSUSTAINBILITY OF NO NEW REVENUE TAX RATE, BECAUSE I'M GOING TO MAKE SURE THAT THAT IS POSTED NEXT YEAR. SO I AM IN SUPPORT OF THE RECOMMENDED TAX RATE BY THE CITY MANAGER, WHICH HAPPENS TO BE SIMILO THE NO NEW REVENUE TAX RATE. THAT'S ALSO ANOTHER WAY OF SHOWING SUPPORT AND REQUEST FOR OUR CITY. >> YES, I'M ALSO IN SUPPORT OF THE NO NEW REVENUE RATE. . >> Grady: I CAN SUPPORT THE NO NEW REVENUE RATE WITH ALL THE CAVEATS THAT I HAVE SAID PREVIOUSLY, FROM AN ECONOMICAL STANDPOINT, FROM AN ECONOMIC MODEL STANDPOINT, THIS IS NOT A SUSTAINABLE PLACE TO BE, AND AS WE HAVE HEARD, EVEN FROM OUR DIRECTOR OF HR, THAT MAINTAINING OF THE TYPE AND CALIBER OF PEOPLE THAT WE NEED THAT DELIVER THE SERVICES TO ALL OF OUR COMMUNITY, WE NEED TO NOT BURDEN THEM BY SAYING WE ARE GOING TO HAVE A NO NEW REVENUE RATE FOREVER, AND THUS DECREASING THE AMOUNT OF STAFF THAT WE CAN HAVE, BECAUSE OBVIOUSLY IF WE HAVE A PERSON THERE, THEY CAN DO JOB PLUS ONE PLUS TWO PLUS THREE. I'VE BEEN IN THAT ENVIRONMENT BEFORE, IT IS NOT A PRETTY PICTURE. IT ENDS UP WITH A SIGNIFICANT AMOUNT OF BURNOUT, IT ENDS UP WITH A SIGNIFICANT AMOUNT OF LOSS OF TALENT AND WE JUST CAN'T SUSTAIN IT. SO I WILL SUPPORT THIS, BUT I BELIEVE THAT THE DISCUSSION IN THE FOLLOWING YEARS REALLY NEED TO BE WHAT DO WE WANT THE CITY TO BE AND DO WE WANT TO JUST SUSTAIN THIS RATE OR DO WE WANT TO IMPROVE ON IT. >> Tu: COUNCILMAN GRADY, I JUST WARRANTED TO CONFIRM THAT IT IS ALSO THE RECOMMENDED RATE BY THE CITY MANAGER, SO I TOTALLY AGREE WITH YOU. I THINK THAT, YOU KNOW, HAD THE BUDGET NOT SHOWN UP WHERE THERE IS SUFFICIENT FUNDS TO COVER FOR THIS YEAR'S BUDGET, I THINK WHATEVER IS RECOMMENDED BY THE CITY IS REALLY FROM 2400 OF OUR EXPERTS TELLING US WHAT IS NEEDED TO SUSTAIN OUR CURRENT BUDGET. AND AT THIS POINT, IF WE ARE ABLE TO SUSTAIN IT WITH THE NO NEW REVENUE, I'M IN SUPPORT OF IT, AND THAT'S THE REASON THAT. >> Grady: AND I AGREE WITH THAT COMMENT, BECAUSE I THINK BEHAVWE HAVE SEEN IN THE LAST FOUR YEARS AN INFLUX OFOLLA FOR WHICH WE DID NOT EXPECT FOR WHICH WE CAN NO LONGER COUNT ON IN THE FUTURE. I DON'T BELIEVE WE'LL SEE THOSE IMPACTS AGAIN AND WHEN YOU TAKE A LOOK AT THOSE EXTRANEOUS DOLLARS THAT CAME IN, DON'T COUNT ON THEM IN THE FUTURE OF PADDING THE DIFFERENCE OF WHAT WE NEED AND WHAT WE HAVE. >> Ricciardelli: THANK YOU, MAYOR. I ALSO SUPPORT THE NO NEW REVENUE RATE AND I VERY MUCH APPRECIATE THE WORK THAT CITY MANAGER ISRAELSON, DIRECTOR RHODES WHITLEY, KAYCI, I DON'T KNOW EXACTLY YOUR TITLE, BUT KAYCI SCHRAEDER'S TITLE, BUDGET MANAGER AND SO MANY OTHERS HAVE DONE ON THIS FANTASTIC BUDGET. I ALSO WANT TO JUMP INTO THE CONVERSATION ABOUT THE NO NEW REVENUE RATE. OBVIOUSLY WE CAN'T DO THE NO NEW REVENUE RATE FOREVER UNLESS INFLATION DISAPPEARS BECAUSE THAT FORMULA DOES NOT TAKE INTO ACCOUNT INFLATION, SO WE WOULD NOT BE ABLE TO MAINTAIN THE SAME LEVEL OF SERVICES IF WE'RE FACING INFLATION AND COSTS IF WE DO THE NO NEW REVENUE RATE FOREVER. YOU KNOW, IF WE HAD DONE THE NO NEW REVENUE RATE EVERY YEAR SINCE 1950, THE PROPERTY COLLECTIONS AND PROPERTY TAXES FROM EXISTING PROPERTIES WOULD BE THE SAME AS THEY WERE IN 1950, AND THERE'S NO WAY THAT YOU COULD FUND A CITY LIKE THAT. THAT BEING SAID, WHEN WE HAVE THE OPPORTUNITY TO DO THE NO NEW REVENUE RATE, IT'S SOMETHING I ALWAYS ADVOCATE FOR. I THINK WE HAD THAT OPPORTUNITY THIS YEAR, AS THE CITY MANAGER'S RECOMMENDATION HERE TODAY SHOWS, AND HOW MANY YEARS WE CAN DO IT GOING FORWARD, I DON'T KNOW. I DON'TNO IF THAT'S ZERO MORE YEARS, ONE MORE YEAR, THREE MORE YEARS FIVE MORE YEARS. I THINK THE DARK FUNDS AND OTHER FACTORS GOING FORWARD COULD PLAY INTO THE VIABILITY OF THE NO NEW REVENUE RATE NEXT YEAR, AND OTHER FACTORS, BUT SOONER OR LATER, THERE WILL COME A DAY WHERE YOU HAVE TO ADJUST FOR INFLATION. BUT I JUST WANT TO SAY THANK YOU TO THE STAFFMEN STAFF. YOU KNOW, I SHARED WITH MARK THE AN MAL ANALOGY, USAIN BOLT SET ANOTHER WORLD RECORD AND ANOTHER WORLD RECORD AFTER THAT, HE DIDN'T RETIRE RIGHT AWAY. THAT'S HOW I FEEL ABOUT THE PLANO STAFF. I THINK PLANO IS ALREADY THE BEST VALUE PROPOSITION AROUND AND THIS BUDGET MAKES IT EVEN BETTER, SO WE'RE SETTING A NEW WORLD RECORD AND I JUST WANT TO THANK THE STAFF AND EVERYONE INVOLVED WITH THE CITY FOR THAT. >> Mayor Muns: THANK YOU. I, TOO, AM IN FAVOR OF THE NO NEW REVENUE RATE, THE FACT THAT IT WAS RECOMMENDED BY MARK AND THAT MEANS A LOT TO ME THAT THEY FEEL LIK TY CAN MAGE IT, BUT EVEN TODAY WE HEARD FROM OUR GRANT FUNDING PEOPLE, WE HEARD FROM THE UPDATE REBATE, WE HEARD FROM ECONOMIC DEVELOPMENT, FUND BALANCE, SOLID WASTE HAS ONE DAY OF OPERATION FUND BALANCE. THOSE THINGS, WE CAN'T CONTINUE TO HOPE WILL JUST WORK THEMSELVES OUT BY KICKING THE CAN DOWN THE ROAD. SO WITH THIS BEING SAID, I SUPPORT THE NO NEW REVENUE RATE BUT I'M VERY SUPPORTIVE OF A FIVE-YEAR PLAN THAT WILL HELP US FORESEE SOME OF THESE ISSUES, AND THAT WE CAN, YOU KNOW, HOPEFULLY COME UP WITH SOLUTIONS LONG BEFORE WE'RE RIGHT AT THAT CLIFF. SO WITH THAT BEING SAID, I THINK YOU HAVE YOUR DIRECTION. AND KAREN, YOU AS WELL. >> Isrealson: MAYOR AND COUNCIL, THANK YOU FOR YOUR TIME THIS MORNING. I KNOW THAT THIS TAKES TIME OUT OF EVERYBODY'S WEEKEND. I DON'T WANT TO PROLONG THIS WITH ANY LONG STATEMENTS, STAFF ALSO HAS A WEEKEND TO HAVE STUFF AROUND I'M THE ONLY ONE STANDING BETWEEN HERE AND GETTING OUT OF HERE. SO THANK YOU VERY MUCH. >> Mayor Muns: THANK YOU. I NOW DECLARE THE MEETING IS ADJOURNED.