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[(EDC) Board Meeting/(CDC) Board Meeting]
SIX THIRTY ONE, AND I CALL THIS REGULARLY SCHEDULED TITLE, ECONOMIC DEVELOPMENT CORPORATION, TYPE A AND TYPE B BOARD OF DIRECTORS MEETING TO ORDER.PRESENT VICE CHAIR LUCAS PRESENT.
SECOND CLANCY TREASURER COLEMAN.
PRESENT BOARD MEMBER MINTON HERE.
I PLEDGE ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA, AND TWO REPUBLIC FOR WHICH STANDS, ONE NATION UNDER GOD, INDIVISIBLE, WITH LIBERTY AND JUSTICE FOR UNDER THE TEXAS FLAG.
I PLEDGE ALLEGIANCE TO THE TEXAS ONE UNDER GOD.
UH, DO WE HAVE ANYBODY SIGNED UP FOR OKAY, HAVING NONE.
WE'LL MOVE ON TO CONSENT AGENDA, WHICH THERE IS NONE THERE, SO NO ACTION ON THAT.
UH, ITEM SIX, ECONOMIC DIRECTORS REPORT.
COUPLE OF QUICK THINGS TONIGHT.
UM, OBVIOUSLY THE PRIMARY REASON WE'RE HERE IS TO GET THROUGH THE RATING OF THE BUDGET AND GET THROUGH ALL OF THE, THE, UH, LINE ITEMS AND THE THINGS THAT WE'VE DONE TO KIND OF MAKE THIS THE FIRST STEP IN OUR CITY BUDGET SUBMITTAL.
UH, AS YOU KNOW, WE'RE USING CLEAR GOV.
YOU GUYS RECEIVED, I THINK, A LINK TO THE CLEAR GOV, UH, UH, SOFTWARE OVER THE WEEKEND, WHICH, UH, WE THEN PUTTED ALL OF THE STAFF RELATED COSTS AND SO ON AND SO FORTH.
JUST GOING THROUGH SIMULTANEOUS REVIEW BY BOTH THE BOARD HERE TONIGHT AND ALSO BY THE CITY.
UM, COUNCIL, AS YOU MAY HAVE HEARD, UH, PRIOR, UM, ANN LARA, OUR FINANCE DIRECTORS HERE TONIGHT, UM, SHE CERTAINLY CAN ANSWER ADDITIONAL QUESTIONS ABOUT THE PROCESS, AND WE CERTAINLY ARE IN A POSITION IF YOU WANNA MOVE FORWARD TONIGHT AND RECOMMEND A BUDGET, WE'LL HAVE A FEW FILL IN THE BLANK ITEMS FOR YOU TO KIND OF CATCH YOU UP.
BUT THERE'S ALSO NO OBLIGATION TO HAVE TO APPROVE IT THIS EVENING.
SO IF YOU FEEL LIKE YOU'RE GONNA NEED MORE TIME AND YOU WANT TO SORT OF STUDY IT A LITTLE BIT MORE IN DEPTH, UM, WE HAVE THE LUXURY OF DOING THAT.
A COUPLE OF REALLY SORT OF HIGH LEVEL COMMENTS, UM, ABOUT WHAT'S IN HERE THAT, YOU KNOW, HASN'T BEEN IN HERE IN YEARS PAST.
UM, FIRST OF ALL, THE MAJOR ISSUES, AND THERE WERE THINGS THAT YOU ALL HAVE RAISED IN THE PAST AND DISCUSSIONS IN HERE, IS THE INCREASE IN A HEADCOUNT, BASICALLY OF A BUSINESS RETENTION SPECIALIST.
UH, AN INDIVIDUAL CAN HANDLE BOTH LOCAL CALLS WITH EXISTING BUSINESS AND ALSO BEGIN TO BACK UP, UH, CHENEY AND I AND SOME RESEARCH RELATED ITEMS, AND SOME OF THE THINGS THAT WE DO TO TRY TO BRING IN SOME OF THE LARGER PROJECTS, UM, THAT WE'VE BEEN WORKING ON.
AND A, UH, INTERN, UM, THERE'S AN AWFUL LOT OF DATA GATHERING AND THINGS THAT WE NEED TO DO THAT WOULD BE GOOD FODDER FOR AN INTERN LEVEL, UH, PERSON.
SO WE'VE INCLUDED THOSE TWO, UH, IN THE BUDGET THIS YEAR.
THOSE WOULD BE THE MAJOR DEPARTURES FROM PAST YEAR SPENDING.
UM, WE ALSO, YOU'LL BE SEEING, OR IF YOU'VE LOOKED AT THE BUDGET, THAT THERE REALLY ARE TWO FUNDS.
THERE'VE ALWAYS BEEN TWO FUNDS.
THERE'S A CITY COMPONENT TO ECONOMIC DEVELOPMENT FUND 10, UM, IN THE PAST THAT HAS INCLUDED, UH, A PORTION OF SALARIES OF THE EDC STAFF, AND THEN A PORTION HAS BEEN ON THE EDC BOOKS.
UH, THE MANAGER WAS SUGGESTING THIS YEAR THAT THEY TRY TO GET ALL OF THE SALARY ITEMS INTO FUND 10 ON THE CITY CITYSIDE TO TRY TO FREE UP MORE MONIES, ESSENTIALLY FOR, UH, NON PERSONNEL RELATED COSTS, PROJECTS, THAT SORT OF THING, ON FUND 35, WHICH IS THE E D C PORTION.
SO THAT'S HOW THIS BUDGET WAS PUT TOGETHER, AND THAT'S WHAT YOU'LL SEE AS YOU GO THROUGH IT.
UM, WE HAVE A LINE ITEM, UH, IN THERE FOR PROFESSIONAL SERVICES.
AS YOU KNOW, IN THE PAST, WE HAVE REIMBURSED THE CITY FOR THINGS THAT THEY DO IN SUPPORT OF THE EDC.
UM, AS GEORGE SPOKE LAST TIME, THERE'S A REQUIREMENT THAT WE HAVE SOME OFFSET TO HAVE AN EDC CITY FUNCTION AND RELATIONSHIP.
SO IF THE SALARIES ARE GOING BACK INTO THE CITY SIDE, THERE'D HAVE TO BE SOME COMPENSATION FROM ANOTHER NON-SALARY SOURCE IN ORDER TO MAKE THAT A REALITY.
UM, THERE ARE A LOT OF DIFFERENT WAYS THAT HAS BEEN LOOKED AT FROM A DOLLAR AND CENTS POINT OF VIEW, BUT THE BUDGET THAT YOU HAVE IN FRONT OF YOU TONIGHT HAS A FIGURE OF ABOUT $300,000, UM, IN REIMBURSEMENT IN THAT LINE ITEM.
UM, A LOT OF OTHER THINGS THAT WE'VE DONE ARE NOT FLAT LINED, UH, BUT THEY'RE SORT OF STRAIGHT LINED, IF YOU WILL, GOING INTO THE BUDGET.
SO, FOR EXAMPLE, THINGS LIKE ICSC, UM, WE'VE CONTINUED TO, UH, PUT THE SAME LEVEL OF ATTENTION TO THAT THAT WE HAVE IN YEARS PAST IN TERMS OF A BOOTH, UH, TRAVEL FOR SEVERAL REPRESENTATIVES FROM THE COMMUNITY, THINGS OF THAT NATURE.
YOU'LL SEE AS YOU DRILL INTO THOSE LINE
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ITEMS THAT ONE OF THE POWERS OF CLEAR GOV IS THAT IT REALLY DOES GIVE YOU AN AWFUL LOT OF REALLY DETAILED INFORMATION ABOUT WHAT GOES INTO THOSE EVENTS, WHAT COSTS ARE, ARE BORN FOR THE, THE ACTUAL ATTENDANCE AND, AND TRAN AND TRANSPORTATION.UM, SO THAT MAY BE HELPFUL AS YOU THINK ABOUT THOSE ITEMS. THE REST OF WHAT WE WOULD BE DOING BESIDES BUSINESS RETENTION WOULD BE THE CONTINUATION, PARTICULARLY OF THE MARKETING, UM, AROUND THE LAND THAT WE OWN AT COTTONWOOD AND, AND THE MEGA SITE.
AND THEN THE OTHER ITEMS ARE GENERALLY BROUGHT FORWARD FROM, FROM YEARS PAST.
ONCE YOU GET OUTSIDE OF, OF SALARIES AND EVENTS, OBVIOUSLY WE'VE GOT LEGAL SUPPORT, WE'VE GOT SOME GENERAL LEVEL OF MARKETING SERVICES AND SOME GENERAL OVERHEAD ITEMS THAT WE'VE ALREADY DISCUSSED.
SO THOSE HOPEFULLY ARE RELATIVELY CLEAR AS YOU LOOK AT THE CLEAR GUT ITEMS. AND THEN CHENEY'S GONNA TAKE YOU THROUGH THE ACTUAL LINE BY LINE LAYOUT SO YOU HAVE A CHANCE.
IF YOU HAVEN'T LOOKED AT IT ALREADY, YOU JUST GET FAMILIAR WITH WHAT'S IN FRONT OF YOU.
AGAIN, TO ANN'S POINT, NO ACTIONS REQUIRED TONIGHT.
UM, BUT IN THE EVENT THAT YOU DO WANT TO APPROVE IT WITH CAVEATS OR ANYTHING ELSE, UH, YOU'RE ALSO ABLE TO DO THAT.
THE ONE ITEM THAT MAY CAUSE A LITTLE BIT OF CONCERN, BUT IT IT SHOULDN'T, IS THAT IN THE, UH, IN PUTTING THE FINAL 30, UH, FUND 35 BUDGET TOGETHER, WE GOT A LITTLE BIT OF CONFLICTING INFORMATION INTERNALLY ABOUT WHETHER WE SHOULD OR SHOULDN'T INCLUDE LAND SALES.
WE DID NOT INCLUDE THEM IN THIS BUDGET VERSION, BUT AS YOU KNOW, WE'VE BEEN WORKING DILIGENTLY WITH FINANCE AND THE MANAGER ON THE ISSUE OF CASH FLOWS WITH LAND SALES AND EXPENSES.
THIS BUDGET ONLY SHOWS YOU THE EXPENSE SIDE OF THE LAND BUSINESS, BUT NOT THE REVENUE SIDE.
SO THAT CAN VERY EASILY BE TRUED UP BY SIMPLY JUST ADOPTING THE CASHFLOW WORK THAT WE'VE ALREADY DONE AND FINANCE IS ALREADY SIGNED OFF ON.
SO THE QUOTE UNQUOTE NEGATIVE VALUE THAT'S IN HERE IS, IS SOMETHING THAT WE CAN RATHER EASILY ADDRESS AND HAVE A HIGH DEGREE OF CONFIDENCE THAT THE NUMBERS THAT ARE IN THE CASH FLOW, UH, STATEMENT WILL, WILL MORE THAN OFFSET.
WHAT'S THE, THIS DEFICIT IS IN THE BUDGET THAT I THINK IS THE HIGHLIGHT HIGHLIGHTS.
UM, CHENEY'S GONNA KIND OF KIND OF LEAD YOU THROUGH THE, THE, UH, OVERVIEW FROM A, FROM A CLEAR GOV PERSPECTIVE.
THE ONLY OTHER COMMENT I'LL MAKE NOW SO WE DON'T FORGET TO MAKE IT LATER, IS JULY 10TH, WHICH IS OUR NEXT REGULARLY SCHEDULED MEETING, IS A COMBO WORKSHOP WITH THE CITY COUNCIL.
UM, IT WAS PROPOSED BY SEVERAL COUNCIL MEMBERS, AND I THINK SEVERAL OF YOU ALL AS WELL AS AN OPPORTUNITY FOR US TO KINDA LEVEL SET A LITTLE BIT ON SOME OF THE THINGS WE ARE ACCOMPLISHING AND SOME OF THE THINGS WE WANNA ACCOMPLISH GOING INTO THE NEW YEAR.
UM, OBVIOUSLY IT COULD HAVE SOME BUDGET IMPLICATIONS AS WELL, UM, BUT A LOT OF IT REALLY HAS MORE TO DO, I THINK JUST WITH THE POLICIES AND THE KINDS OF, UH, PROJECTS THAT WE'RE PURSUING AND GETTING EVERYBODY COMFORTABLE.
HOPEFULLY THAT WHAT WE'RE GOING AFTER IS WHAT YOU ALL HAVE SET AS PRIORITIES.
SO THAT WILL BE, UH, A NORMAL, UH, TIME, BUT IT'LL BE A JOINT WORKSHOP WITH THE COUNCIL, AND THAT IS THE SORT OF BACKGROUND TO WHAT WE WERE GONNA DO WITH THE ACTUAL REVEAL OF THE BUDGET ITSELF.
ANY QUESTIONS? WELL, I'LL RESERVE MINE UNTIL CHANEY SPEAKS.
COMING, COMING, COMING NEXT SOON, SOON.
THEY ALL, ALL KIND OF GO TOGETHER, BUT, UH, SO WE DON'T HAVE ANYTHING UNDER PRESENTATION.
SO, UH, EIGHT ONE, DISCUSS AND CONSIDER ACTION REGARDING THE CURRENT AND PROPOSED SERVICES AGREEMENTS BETWEEN THE CORPORATION AND THE CITY OF HUTTO.
UM, MR. CHAIR, BECAUSE OF THE COMMENTS THAT WERE, UH, PREVIOUSLY DISCUSSED, UM, ARE DIRECTLY RELATED TO 8.2, UM, I'D LIKE TO ASK THAT THE, THE, UH, BOARD CONSIDER REALLOCATING THAT TO 8.2, WHICH IS YOUR BUDGET ITEM, BECAUSE ESSENTIALLY, UNLESS YOU HAVE ANYTHING MORE FOR 8.2, UM, THAT PRESENTATION HAS BEEN COMPLETED.
I HAVE 8.2 IS THE, IS THE ACTUAL ACTION ON THE BUDGET.
AND SO THE BUDGET WASN'T ACTUALLY IN THE DIRECTOR'S REPORT LISTED.
AND SO I WANTED TO JUST POINT OUT THAT THAT DISCUSSION WAS ON THE AGENDA TO HAVE THE BUDGET DISCUSSION, EVEN THOUGH IT WASN'T LISTED UNDER THE ECONOMIC DIRECTOR'S REPORT.
SO DO WE NEED TO JUST MOVE THAT TO, OR GO TO EIGHT TWO THEN JUST TO SEE IF THERE'S ANY ADDITIONAL COMMENT? OKAY.
BECAUSE THE MINUTES SHOULD REFLECT THAT DISCUSSION UNDER EIGHT TWO RATHER THAN UNDER ECONOMIC DEVELOPMENT.
I'LL ENTERTAIN A MOTION TO MOVE EIGHT TWO UP.
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I I'LL SECOND.WE HAVE A MOTION TO MOVE EIGHT TWO UP, UH, BEFORE EIGHT.
MOTION BY, UH, BOARD MEMBER CLARK, SECONDED BY, UH, VICE CHAIR LUCAS ROLL CALL BOARD MEMBER CLARK.
DISCUSS AND CONSIDER ACTION APPROVING THE PHYSICAL YEAR 24 BUDGET OF THE CORPORATION AND RECOMMENDING THE APPROVED BUDGET TO CITY COUNCIL FOR CONSIDERATION AND APPROVAL.
CAN WE TALK ABOUT REVENUES BEFORE EXPENDITURES? SURE.
IS THAT FINE WITH EVERYONE ELSE? THAT, ALL RIGHT.
SO HAS EVERYONE LOGGED IN TO CLEAR GOV? YES.
SO I DON'T HAVE REVIEWER ACCESS, SO I DON'T KNOW IF EVERYTHING THAT I'M GONNA SHOW YOU IS EXACTLY WHAT YOU SEE.
UM, BUT JUST KIND OF LAY OF THE LAND.
WE'VE GOT TWO BUDGETS OVER HERE.
SO WE HAVE OUR GENERAL FUND, AND THEN WE HAVE OUR, WHICH IS FUND 10 THAT BOB REFERRED TO.
AND THEN FUND 35 IS OUR EDC BUDGET.
AND WE JUST ARE GONNA BE LOOKING AT THE OPERATIONAL BUDGET.
SO PER BOARD MEMBER CLARK'S REQUEST, WE CAN LOOK AT REVENUES.
SO I WILL SCROLL OVER TO SHOW WHAT WE HAVE.
SO EARLIER THIS FISCAL YEAR, YOU MAY RECALL A BUDGET AMENDMENT THAT, UH, IN INCREASED THE E D C REVENUE FROM 2.5 MILLION, WHICH WAS WHAT WAS PREVIOUSLY BUDGETED FOR THE YEAR, AND INCREASED THAT TO 3 MILLION.
AND, UH, I CHECKED WITH FINANCE AND CONFIRMED THAT THE 3 MILLION WAS A GOOD NUMBER TO, UH, BUDGET FOR NEXT FISCAL FISCAL YEAR.
AND I ACTUALLY WAS TOLD THAT 3.5 WOULD BE MORE IN LINE WITH WHAT THE CITY IS BUDGETING FOR THEIR PROJECTED, UM, SALES TAX INCOME.
SO, UM, AND THEN THE OTHER REVENUE SOURCES INTEREST EARNED.
AND IF YOU'LL NOTICE, WE'RE ALREADY OVER, HOLD ON.
SO THIS IS, OUR ACTUAL HERE IS ALREADY OVER A HUNDRED THOUSAND DOLLARS FOR THIS CURRENT YEAR.
SO I WENT AHEAD AND INCREASED THAT TO A CONSERVATIVE A HUNDRED THOUSAND.
UM, SO THAT'S, THAT'S WHAT CONSTITUTES OUR REVENUES AT THIS POINT.
AND SO, SO MY QUESTION IS ON, IT WAS SPECIFICALLY ABOUT THE INTEREST EARNED.
UM, YOU KNOW, HOW WE DID A LADDERING EFFECT WITH THE CITY AND RECENTLY, AND WE WENT INTO DIFFERENT TEXT PULL ACCOUNTS TO INVEST TO GET THE, THE HIGHER RATE AT LIKE, I THINK 5% RETURN.
SO MY QUESTION IS, WHAT ARE WE DOING FOR THIS INTEREST EARNED? AND AS WE DRAW DOWN FOR THE SPINE ROAD AND EVERYTHING, WE HAVE THIS BIG POOL OF MONEY, BUT, SO WE ARE GONNA EARN INTEREST, BUT OBVIOUSLY WE'RE GONNA DRAW IT DOWN FOR THE YEAR.
SO I WANTED TO KNOW, HAVE WE HAD FINANCE LOOK AT THAT AND GIVE US THAT, UH, RECOMMENDATION? AND WE WERE, WE WENT TO THE NEW TEXAS, YOU KNOW, WE WENT TO A NEW CHECKING ACCOUNT AND WELLS FARGO.
UM, SO I JUST WANTED TO FIND OUT LIKE WHERE WE, THESE NUMBERS JUST SAYING A NUMBER, BUT IS IT ACTUALLY TIED TO THE CURRENT INTEREST RATES WE'RE GETTING IN OUR MONEY MARKET ACCOUNT AND BASED ON OUR DRAWDOWN RATES OF WHEN WE'RE EXPECTING TO EXPEND STUFF? BECAUSE I WANT TO HAVE A VERY TIGHT NUMBER THAT WE CAN TRUST AND I WOULD DEFER TO FINANCE FOR THOSE DETAILS.
I'M GONNA TELL YOU, TRYING TO GET A, A VERY PRECISE NUMBER AS IT RELATES TO INTEREST EARNED IS GOING TO BE INCREDIBLY DIFFICULT.
SO, UM, JUST BECAUSE IT'S ALWAYS GONNA FLUCTUATE BASED OFF WHATEVER PRIME IS, UNLESS YOU GOT, WELL, I GET THAT, BUT I'M LIKE, BUT I'M LIKE, MY POINT IS WE BUDGETED, FOR EXAMPLE, THE CITY A HUNDRED THOUSAND, WE MEAN 6 MILLION THIS YEAR.
SO I'M NOT SAYING TIGHTEN IT IN THAT MUCH, BUT WE SHOULD BE IN THE SAME DECIMAL POINT.
UM, SO I JUST WANTED TO MAKE SURE, UH, ON THAT.
SO FINANCE CAN ANSWER THAT CUZ THAT WILL KIND OF DICTATE WHAT WE DO ON OUR EXPENDITURE SIDE AS OUR REVENUE NUMBERS ACCURATE.
SO WE HAVE NOT BEEN ASKED TO LOOK AT THAT, BUT WE WOULD BE HAPPY TO DO SO.
AND IF YOU LOOK AT YOUR CASH FLOW ANALYSIS, YOUR CASH BALANCE WILL BE DECREASING THROUGHOUT 24.
AND WHAT WE'RE LOOKING AT EARNING ON, UH, THE INVESTMENTS
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FOR THE CITY, WE'RE LOOKING AT INVESTING IN T-BILLS AND CURRENTLY THE INTEREST RATE IS ABOUT 5.5% SO THAT YOUR FUNDS WOULD BE INVESTED IN THOSE T-BILLS.AND WE DO A POOLED CASH CONCEPT FOR ALLOCATION OF THE INTEREST.
AND SO YOU'D BE EARNING 5.5% ON YOUR DECLINING CASH BALANCE THROUGHOUT THE YEAR OF 24.
AND THEN WE COULD DO A PROJECTION ON WHAT WE THINK THE INCREASE IN THE INTEREST RATE WOULD BE.
WE'RE LOOKING AT BUYING, UM, A LADDERED STRATEGY OF T-BILLS BECAUSE WE'RE THINKING THE INTEREST RATE WILL INCREASE THROUGHOUT THE YEAR.
AND SO WE WILL HAVE T-BILLS THAT MATURE MONTHLY AND THEN WE REINVEST AT THAT POINT IN TIME AND INSTRUMENTS THAT WE BELIEVE ARE THE BEST INSTRUMENTS FOR THE CITY AT THAT POINT IN TIME.
SO WE CAN DO A CALCULATION BASED ON THE CASH FLOW ANALYSIS AND THEN PROGRAM THAT IN, BUT WE HAVE NOT BEEN ASKED TO DO THAT YET.
AND THEN I WOULD REDUCE IT BY 10% OR SOMETHING.
SO WE'RE VERY CONSERVATIVE, BUT OKAY, WE CAN DO THAT.
UM, YOU GETTING ADVICE FROM WELLS FARGO OR ARE YOU GUYS JUST MAKING A SPOT CALL ON LIKE WHAT YOU'RE PUTTING YOUR, WHAT THE MONEY INTO AND JUST KIND OF LOOKING AT WHAT INVESTMENTS YOU SAID, YOU SAID, HEY, WE'LL PUT IN THE BEST ONE.
WHO'S, WHO'S DOING THAT? IS THAT YOU DETERMINING THAT OR WELLS FARGO ADVISING YOU? SO CURRENTLY WE HAVE, UH, AN INVESTMENT COMMITTEE THAT'S COMPOSED OF MYSELF, THE CONTROLLER, AND THE SENIOR ACCOUNTANT.
CURRENTLY THE CITY DOES NOT HAVE A BROKERAGE ACCOUNT, SO IN ORDER TO BUY INSTRUMENTS OF ANY TYPE RIGHT, UH, EVEN A CD, WE WOULD HAVE TO HAVE A BROKERAGE ACCOUNT.
SO OUR RECOMMENDATION AT THIS POINT WAS TO ESTABLISH THAT BROKERAGE ACCOUNT.
AND THEN I CAN SEE IN THE FUTURE WHERE THE CITY WOULD HAVE A FINANCIAL ADVISOR.
WE'RE CURRENTLY USING, UM, HILLTOP SECURITIES AS OUR FINANCIAL ADVISOR.
HOWEVER, WE HAVEN'T ASKED THEM FOR FINANCIAL ADVICE BECAUSE WE DIDN'T HAVE THE BROKERAGE ACCOUNT AND WE DIDN'T HAVE ANYTHING.
SO T BILLS ARE A PRETTY SAFE INVESTMENT AT THIS POINT IN TIME WITH A FAIRLY HIGH INTEREST RATE.
AND THEN ONCE WE GET EVERYTHING ESTABLISHED, WE'LL GET RECOMMENDATIONS FROM HILLTOP AND THEN IF WE NEED OR FIND THAT WE NEED ANY KIND OF ADDITIONAL ADVISOR WE CAN PAY FOR THAT SERVICE.
HILLTOP IS CURRENTLY FREE TO THE CITY FOR THEIR SERVICES.
AND THEN WE DO USE, UH, FROST BANK AS A HOLDING COMPANY FOR THE SECURITIES.
MOST OF THE TIMES WHEN YOU'RE LOOKING INTO STUFF LIKE THAT, EVEN WE HAVE PRODUCTS THAT ARE GENERALLY LIKE THAT THERE'S A FEE ASSOCIATED TO IT.
I'M NOT SAYING FIVE AND A QUARTER ISN'T KIND OF WHERE FIVE, FIVE AND A QUARTER ISN'T KIND OF WHERE THE MARKET AVERAGE IS, BUT MM-HMM.
SO NOW FOR A BIG BANK, SO NOW, UH, YOU SAY YOU'RE IN THE BANKING ENVIRONMENT MM-HMM.
SO IF THE EDC HAD SOME KIND OF AN INVESTMENT COMMITTEE, WE WOULD LOVE TO HEAR YOUR ADVICE AND UH, MAYBE YOU COULD HELP POINT US IN THE RIGHT DIRECTION.
SO I GUESS THE, THE OTHER DIRECTION THAT STAFF WOULD BE SEEKING AS WELL IS WITH REGARD TO THE SALES TAX REVENUES, UM, AS I MENTIONED, FINANCE DID SAY THAT THEY FELT COMFORTABLE GOING UP TO 3.5 FOR NEXT FISCAL YEAR.
UM, WE JUST WANNA GET YOUR DIRECTION ON THAT BEFORE MAKING THAT CHANGE TO THE BUDGET.
AND THAT'S THEIR PROJECTION OF WHERE WE'LL BE IS 3.5.
THIS IS BASED OFF THE TREND OF WHAT THEY SEE RIGHT NOW, CURRENTLY COMING IN.
YEAH, I WAS TOLD THAT THAT ALIGNS MORE WITH THE PROJECTIONS THAT THEY'RE MAKING ON THE CITY SIDE PERCENTAGE WISE.
SO, SO MY POINT WAS INSTEAD OF APPROVING SOMETHING TONIGHT, DO WE TIGHTEN THAT UP AND GO TO LIKE 3, 3, 3, 2 50? OR YOU'RE LESS CONSERVATIVE, MORE CONSERVATIVE THAN THE THE CITY? OR ARE YOU GONNA MATCH WHAT WE'RE GONNA DO ON THE CITY SIDE FOR BUDGET, FOR SALES, TAX REVENUE? FOR OUR TAX RATES? RIGHT.
HERE'S, HERE'S MY INPUT, WHICH IS FROM, FROM A REVENUE STANDPOINT, WHEN WE REALLY HAVE VERY LITTLE CONTROL OVER THAT, MY, MY BIGGER CONCERN IS ON THE EXPENDITURE SIDE.
BECAUSE OBVIOUSLY IT SHOWS UPSIDE DOWN RIGHT NOW BECAUSE LAND SALES AREN'T ACCOUNTED FOR INSIDE OF THIS.
BUT I WOULD RATHER SAY, HEY, OUR REVENUE CAME OUT HIGHER THAN, UH, EXPECTED AND BASICALLY TRY TO SAY, HEY, WE NEED TO LIVE OFF OF WHATEVER, OR HOWEVER LITTLE WE CAN.
UM, AND IF WE JUST HAPPEN TO HAVE AN EXTRA $400,000 SHOW UP ON THE ACCOUNT AFTER IT'S ALL SAID AND DONE, THEN SO BE IT.
THAT'S A GOOD PROBLEM, NOT A BAD PROBLEM.
AND I WOULD RATHER AMEND THE BUDGET SAYING, OH HEY, WE HAVE EXTRA MONEY AND HERE'S WHAT WE'RE GONNA DO WITH IT VERSUS, UM, YOU KNOW, MAKE ASSUMPTIONS BECAUSE WHO KNOWS WHAT COULD HAPPEN, UH, NEXT FISCAL
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YEAR, ANYTHING'S POSSIBLE.SO, AND THE 400,000 DOESN'T KEEP US LIKE THERE ON THE BUBBLE.
I MEAN, LOOK AT IT, IT'S NEGATIVE TOO.
SO I MEAN, I MEAN I'D RATHER CALL IT THIS AND, AND SAY WE HAVE A BETTER PROBLEM THAT WE CAME ABOVE EXPECTATIONS AND BELOW.
I UNDERSTAND YOUR CONCERN THOUGH ABOUT ACCURACY VALID.
YOU KNOW, I MEAN, I'D AT LEAST LIKE TO KNOW THE BALLPARK ON THE INTEREST EARNED.
AND SO I THINK THIS IS WHERE WE NEED TO BE CAREFUL.
UM, SO RIGHT NOW WE ONLY HAVE TWO ACCOUNTS.
WE HAVE, OR I GUESS TECHNICALLY MORE WE HAVE, YOU KNOW, THE TREASURY SIDE BEING WELLS, YOU KNOW, AND ALSO FORMALLY CADENCE IF ANY FUNDS STILL REMAIN OVER THERE.
AND THEN WE HAVE TEXT POOL, THAT'S IT.
SO RIGHT NOW, TEXT POOL AS OF TODAY IS PULLING 5.32 AT PRIME AND 5.06, UH, SEVEN DAY YIELD FOR EITHER ONE I STAND CORRECTED.
SO JESUS, THOSE ARE GREAT VALUES.
THOSE ARE MORE THAN I GET IN THE PRIVATE SECTOR.
UM, SO I THINK THAT'S A GREAT, UH, CONDUIT.
NOW I THINK WHERE TREASURY BILLS AND OTHER ITEMS COME INTO PLAY, UM, IT IS A FIXED INTEREST RATE AND IT'S, YOU KNOW, AND, AND IT'S LOCKED.
WHEREAS TAX FULL, IF THE FED DROPS THE, YOU KNOW, UH, INTEREST RATES BY 150 BASIS POINTS, WELL IT'S GONNA BE HIT THERE.
UM, SO FOR RIGHT NOW, AS LONG AS THE FED REMAINS HIGH, I THINK WE, WE'VE BEEN DOING WE'LL CONTINUE TO WORK.
IF IT STARTS TO DROP OR ANYTHING OF THE SORT, THAT'S WHEN WE NEED TO START LOOKING AT OTHER AVENUES THAT ARE, UM, THAT ARE GONNA TIE UP FUNDS FOR A LITTLE BIT LONGER.
AND THAT'S GONNA BE THE OTHER CONCERN WITH TREASURY BILLS IS, YEAH, YOU CAN SELL 'EM, BUT YOU HAVE TO FIND SOMEBODY TO BUY THEM AND THEY'RE LOCKED IN FOR HOWEVER, YOU KNOW, YOU KNOW, PREDETERMINED AMOUNT OF TIME MM-HMM.
SO, UM, THEY COULD INCREASE IN VALUE, THEY COULD ALSO DECREASE IN VALUE IN THEORY.
SO, UM, YOU KNOW, AGAIN, PRIVATE SECTOR, MY ORGANIZATION INVESTS SOME, UH, IN THAT, BUT IT IS VERY MUCH A, UH, A LARGER MIX THAT RANGES FROM MONEY MARKET, WHICH IS THE MAIN SIDE OF IT, WHICH IS ESSENTIALLY WHAT TEXTUAL WOULD BE.
AND THEN THERE'S SOME INVESTMENT, YOU KNOW, ITEMS THERE, BUT IT'S, IT'S NEGLIGIBLE.
THE MAJORITY OF IT'S IN TEXT OR THERE'S A TEXT POOL EQUIVALENT.
SO ANYTHING ELSE ON REV? I I DO HAVE ONE OTHER, UM, ASK FOR DIRECTION.
UM, I KNOW FINANCE SHARED THAT AND IN MY EMAIL THAT I SENT OUT TO Y'ALL, UM, WITH THE BUDGET DETAILS, UM, LAND SALES ARE NOT INCLUDED IN THE BUDGET PREFERENCE ON THAT.
DO WE WANT TO INCLUDE THEM HERE TO MATCH THE CASH FLOWS? I KNOW, I THINK THAT'S FINANCE'S PREFERENCE FOR THAT SO THAT THEY ARE ALIGNED.
WELL, AND JUST TO BE CLEAR, SINCE WE'VE WORKED AT SOME AMOUNT OF TIME NOW TO GET THE CASH FLOWS RIGHT, TO GET THE TIMING OF THE CASH FLOWS RIGHT, UM, WE ARE REALLY DOING OURSELVES A DISSERVICE IN MY OPINION.
WE GOT ALL THE EXPENSES BAKED INTO THIS AND WE TAKE IN NO ACCOUNTING WHATSOEVER FOR THE REVENUE SIDE.
NOW OBVIOUSLY IF WE HAVE A HICCUP ON REVENUE, IT HAS AN IMPLICATION TO THE OVERALL OPERATING BUDGET, BUT, UM, IT, IT JUST SEEMS SORT OF SILLY TO HAVE ONE SET OF BOOKS THAT BASICALLY WE KEEP INTERNALLY AND ANOTHER SET THAT WE SORT OF DISCUSS PUBLICLY.
SO UNLESS THERE'S SOME OVERWHELMING REASON FOR THE BOARD FEELS UNCOMFORTABLE WITH THAT ANALYSIS, I DON'T SEE ANY REASON WHY WE SHOULD TAKE IT OUT FROM WHERE I SIT.
YOU KNOW, RANDALL, JUST TO KIND OF PIGGYBACK ON ON WHAT YOU'RE SAYING, JUST MAYBE IN A LITTLE DIFFERENT WAY, IT'S LIKE EVERYTHING REVENUE WISE IS ALL ASSUMPTIONS.
SO WE DO THE SAME WITH SALES TAX.
I THINK IT WOULD BE THE SAME WITH LAND IN MY OPINION.
YOU KNOW, AND IF SOMETHING COMES TO FRUITION OR IF IT DOESN'T, THAT PART KIND OF IS WHAT IT IS.
SO, UM, CUZ EITHER WAY THE EDC IS STILL WHOLE FROM A CASHFLOW STANDPOINT FOR AT LEAST THE NEXT FISCAL YEAR.
MY OPINION, IT'S A LOT EASIER SAYING THAT WE'RE NEGATIVE TWO AND THEN VERSUS WE'RE POSITIVE FOUR AND THEN NOTHING SELLS AND WE'RE NEGATIVE TWO.
I MEAN, JUST THE PERCEPTION OF THAT JUST BAD IN MY OPINION.
BUT AS LONG AS YOU'RE WILLING TO DO, I WOULD THINK BUDGET AMENDMENTS THE MORE A SALE OCCURS, UM, THEN THAT WAY YOU WOULD SHOW THAT.
I MEAN THAT MAYBE THAT'S THE COMPROMISE.
BUT I MEAN THIS IS MY LAST MEETING SO I MEAN, YOU KNOW, I DON'T
THE LAND SALES OUT, LAND SALES OUT.
WHAT SAY YOU TREASURE? WELL, I'D HAVE SEVEN POINTS OF NOTES THAT I'VE TAKEN AND IT'S SO MANY, LIKE I HAVE A LOT OF ISSUES WITH THE WAY THAT THE BUDGET, THERE'S SO MANY BLANK SPOTS WHERE IT'S JUST ZERO FOR THIS.
BUT THEN IF YOU LOOK LIKE FOR, THAT'S WHY I WAS GONNA WAIT TO SEE, WELL I WAS ASKING FOR LAND SALES IN OR OUT BUT
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A LOT OF MY, IT'S IN THE LIST.SO THAT'S WHY I'M JUST GONNA WAIT UNTIL HEAR WHAT YOU HAVE TO SAY CUZ MAYBE YOU WILL ANSWER SOME OF MY QUESTIONS THAT WAY I'M NOT REPEATING MYSELF.
CUZ YOU MAY ALREADY HAVE THE ANSWER.
BUT I DO HAVE ONE QUESTION ABOUT THE LAND SALES THOUGH.
OH, SORRY SIR, YOU WERE, SO, UM, IF WE DON'T HAVE ANY OTHER ITEMS AND IT SOUNDS LIKE WE HAVE ONE, BUT IF WE'RE AFTER THAT ITEM, IF WE'RE DONE TALKING ABOUT REVENUE, LET'S GO OVER TO THE EXPENDITURE SIDE.
ALL OF MY QUESTIONS ARE EXPENDITURE AND THEN THAT WAY CHENEY CAN, YOU KNOW, CHENEY PUT ALL THIS TOGETHER.
I THINK SHE DID A GREAT JOB ON, I KNOW THERE'S SOME CONCERNS OF US BECAUSE OF HOW, HOW FUNDS HAVE CHANGED OVER THE COURSE OF TIME AND AND WHATNOT.
UM, BUT YOU KNOW, LET'S GET THROUGH THE REVENUE SIDE AND WE'LL GET INTO EXPENDITURES WHEN, YOU KNOW, DO RAPID FIRE 20 QUESTIONS IF THAT WORKS FOR CHENEY, MATT, LAND SALES IN OR OUT.
UM, I TEND TO AGREE THAT WE PROBABLY NEED TO DEAL WITH REALITY AS IT IS, RATHER THAN HOW WE WOULD LIKE IT TO BE WHERE WE'RE SELLING ALL THE LAND THAT WE HAVE.
I'D SAY LAND SALES OUT, I'LL SAY OUT.
SO, SO THE ONLY THING I WANNA SAY IS THEN IF YOU'RE SAYING IT OUT AND YOU'RE GONNA PESSIMISTICALLY SAY YOU'RE NOT GONNA GET ANY SALES FOR THE YEAR, ANY OF ALL THE DEALS, YOU HAVE ALL THIS PSAS WELL HERE'S PART OF THE PROBLEM.
I SEE THEY'RE KIND OF TIED TOGETHER BECAUSE YOU DON'T HAVE SOME OF THE EXPENDITURES IF THE LAND SALE DOESN'T HAPPEN EITHER, RIGHT? SO YOU'RE TAKING THE HIT FOR AN ECO.
SO WHAT I'M SAYING IS RIGHT NOW YOU GO, YOU'RE 2 MILLION IN THE HOLE, YOU HAVE ALL THESE EXPENDITURES FOR ALL THESE PROJECTS THAT ARE ONLY PAID OUT IF THE LAND SALE ACTUALLY HAPPENED AND THEN YOU HAD TO PAY THAT PERFORMANCE AGREEMENT.
SO I DON'T UNDERSTAND HOW YOU CAN JUST SAY MATHEMATICS, DON'T PUT ANY OF THEM IN, BUT KEEP ALL THE EXPENSES FOR ALL OF THESE PROJECTS.
CUZ IF THEY DON'T SELL, YOU DON'T HAVE THE EXPENSE EITHER.
SO AT, AT A MINIMUM, EVERY LAND SALE THAT HAS AN EXPENSE, THOSE TWO NEED TO BE TOGETHER BECAUSE THEY WOULD BOTH GO AWAY AT THE SAME TIME.
OTHERWISE, WHAT THIS TELLS ME IS YOU CAN DO NOTHING FOR THE NEXT YEAR BECAUSE YOU'RE 2 MILLION IN THE HOLE.
AND YOU DO NOTHING AND YOU CAN'T MAKE A DECISION AND YOU CAN'T LOOK AT ANYTHING.
AND THEN THE ONLY CASHFLOW YOU'RE LOOKING AT, YOU'RE LOOKING AT IN THE BACK.
THAT'S THEN GIVING A NARRATIVE THAT THE EDCS BANKRUPT BY $2 MILLION AND THAT YOU CAN'T DO ANYTHING.
AND THEN IF YOU COME OUT AND THEN DO SOMETHING IN THREE MONTHS FROM NOW AND Y'ALL MAKE A DECISION BECAUSE Y'ALL HAVE LOOKED AT THIS OTHER CASHFLOW AND YOU KNOW THESE SALES ARE GOING TO HAPPEN, OR IF THEY DON'T, THIS OTHER EXPENSE IS GONNA DROP OFF AND THEN YOU COME OUT AND MAKE A VOTE, HOW DOES THE PUBLIC KNOW THAT YOU'RE DOING THE RIGHT THING? SO I DON'T UNDERSTAND HOW YOU CAN SAY NO LAND SALES, BUT HAVE ALL THE EXPENDITURES RELATED TO THOSE LAND SALES STILL IN YOUR BUDGET.
WE DIDN'T GET EXPENDITURES YET.
I SEE WHAT YOU'RE SAYING, BUT I'M JUST SAYING IF WE'RE GONNA GO AWAY FROM REVENUE THAT THAT WAS THE OTHER POINT.
LET'S WALK ALL THE WAY DOWN THE ROAD HERE.
IF I'LL END THIS, THE REVENUE SIDE ON THIS, WHICH IS IF CITY STAFF PARTICULAR FINANCES IS RECOMMENDING THAT THOSE ARE INCLUDED, AT THE END OF THE DAY, THEY ARE THE ONES THAT ARE MAINTAINING OUR BOOKS AND OPERATING THE DAY-TO-DAY OPERATIONS.
SO IF THEY SAY IT SHOULD BE THERE, THEN I'M GOING TO TRUST THAT THEY ARE CORRECT IN THAT AND WE NEED TO, YOU KNOW, FOLLOW THROUGH WITH THAT.
IN THE EVENT THAT SOMETHING WERE TO GO SIDEWAYS OR AWRY, WHATEVER YOU WANNA CALL IT, THEN AT THAT POINT IN TIME WE CAN HAVE THAT CONVERSATION.
BUT UNTIL THEN, YOU KNOW, WE HAVEN'T BEEN FOOLED, LET'S LET 'EM DO THEIR JOB.
SO, UM, WITH THAT EXPENDITURES, OKAY, SO SORRY, JUST TO CLARIFY THEN, ARE WE PUTTING THE LAND SALES IN BECAUSE THAT'S WHAT FINANCE IS RECOMMENDING AND JUST TO BE CLEAR, WE'RE TALKING ABOUT TWO LAND SALES THAT ARE UNDER CURRENT PSAS THAT ARE CLAIM CLOSING? WELL THEY'RE, THEY'RE UNDER CLOSING, UNDER CONTRACTS AND UNDER DUE DILIGENCE.
SO YEAH, I MEAN THEY'RE NOT, WE'RE NOT JUST, WE'RE NOT WAITING ON SOMEONE TO MAIL SOMETHING IN OR WE'RE NOT WAITING ON ED MCMAHON TO COME BY WITH A, IN A COUPON BOOK OR ANYTHING LIKE THAT.
SO WHO'S HE? LET'S DO THE FULL PRESENTATION WITH EXPENDITURES AND SEE HOW THAT WORKS OUT AND THEN OKAY, RIGHT THERE.
SO, UM, I DID GET SOME FEEDBACK EARLIER TODAY ABOUT, UM, HOW TO BEST VIEW THIS.
AND SO I'M HOPING THAT MIGHT ADDRESS SOME OF, UH, TREASURER COLEMAN'S CONCERNS ABOUT THINGS THAT ZEROED OUT.
I KNOW IN SOME OF THESE COLUMNS TO THE LEFT, THERE'S A LOT OF ZEROED OUT ITEMS. HOWEVER, WHAT YOU WANNA BE LOOKING AT IS THE F Y 24 IN PROGRESS COLUMN AND THAT'LL SHOW YOU THOSE, UH, WHAT'S ACTUALLY PROPOSED AS WELL AS ALL THE NOTES RELATED TO EACH ITEM.
WHILE YOU'RE DOING THAT, JUST ONE OTHER QUICK COMMENT.
ONE OF THE PROBLEMS IN COMPARING YEAR OVER YEAR IS WE WENT ESSENTIALLY FROM AN EXCEL SPREADSHEET, RIGHT, WITH VERY LARGE BUCKETS OF EXPENSE TO THIS, WHICH IS MUCH MORE GRANULAR
[00:30:01]
AND ALLOWS YOU TO GET TO THE THINGS THAT MAKE UP THE NUMBER THAT LAST YEAR WOULD'VE BEEN PEGGED AT MAYBE, OH WE THINK IT'S ABOUT 20,000 OR 20,000 BUCKS.BUT WHEN YOU TRY TO LOOK BACK, IT'S VERY DIFFICULT TO COMPARE BECAUSE THEY WEREN'T BA BUILT ON THE SAME SYSTEM.
SO THAT'S NOT TO SAY WE SHOULDN'T BE ABLE TO EXPLAIN EVERY NUMBER THAT'S IN A COLUMN, BUT IF YOU ARE LOOKING AT IT FROM A YEAR OVER YEAR COMPARISON, IT, IT ISN'T GONNA BE EASY JUST BECAUSE OF THE WAY IN WHICH IT WAS PREPARED PRIOR VERSUS NOW.
YEAH, I, TO THAT END, I WOULD LIKE TO FRAME THIS AS OUR NEW BASELINE, UM, BECAUSE SOME THINGS HAVE MOVED SIGNIFICANTLY, SUCH AS SALARIES AND ALL BENEFITS HAVE BEEN MOVED OVER TO FUND 10 OUT OF FUND 35 COMPLETELY.
SO THAT IS A HUGE, UH, TRANSITION.
AND THEN, UH, SIMILARLY WE HAD A EXPENSES THAT, I'LL GIVE A COUPLE OF EXAMPLES WHEN WE GO THROUGH, BUT FOR ICSC FOR EXAMPLE, THAT'S OUR MOST RECENT, WELL THERE'S A LINE FOR TRAVEL.
SO DO YOU PUT THE TRAVEL EXPENSES IN THE TRAVEL LINE OR WERE THEY CHARGED TO TRADE SHOW AND CONFERENCES BECAUSE IT WAS PART OF ICSC.
AND SO THERE'S JUST A LOT OF OVERLAP AND KIND OF, UM, LACK OF ORGANIZATION AS TO WHERE TO BOOK THOSE ACTUAL EXPENSES SO THAT WE COULD THEN LOOK AT AN ENTIRE EVENT AND SAY HERE'S WHAT WE SPENT ON THAT, WHAT SHOULD WE PLAN FOR FOR NEXT YEAR? CUZ WE WOULD'VE BEEN CHASING IT IN FOUR DIFFERENT BUCKETS TO TRY TO FIGURE OUT WHAT WE ACTUALLY SPENT.
SO THIS GRANULARITY IN THE OPPORTUNITY TO SUBLINE WILL BE VERY HELPFUL MOVING FORWARD.
IT'S MUCH MORE ORGANIZED FOR US.
SO I THINK THAT'LL BE A GREAT BENEFIT.
LET'S DIG IN, SHALL WE? SO AS YOU CAN SEE, ALL OF THE SALARIES AND BENEFITS HAVE BEEN ZEROED OUT CUZ THOSE ARE ALL OVER IN FUND 10 CUZ THE CITY SIDE OF THE BUDGET, UM, FOR TRADE SHOWS AND CONFERENCES, I'VE BROKEN THIS OUT.
UM, AND THERE'S A NOTE FOR EVERY SINGLE THING.
SO I PUT IN HERE, FOR EXAMPLE, FOR OUR BOOTH THIS YEAR, UH, WHAT SIZE WE HAD, AND IT WAS 6,200.
I WOULD ANTICIPATE A HALF SIZE NEXT YEAR, UM, JUST DUE TO THIS WAS OUR FIRST YEAR HAVING LAND TO SELL AND REALLY WANTING TO MARKET IT.
I DON'T KNOW THAT THOSE EFFORTS WOULD BE REQUIRED, UH, THAT SAME LEVEL NEXT YEAR.
SO I DID DECREASE THAT COST AND THEN, UM, LOOKED AT THE TOTAL COST FOR THE VARIOUS BOOTH DISPLAYS, INSURANCE, SWAG ITEMS, BOOTH FURNITURE, AND OUR SHIPPING.
UM, SO THIS IS A PERFECT EXAMPLE OF IN PREVIOUS YEARS, THESE WOULD'VE ALL BEEN IN DIFFERENT CATEGORIES AND WE WOULD NOT BE ABLE TO SEE WHAT THE ACTUAL EXPENSE OF THE ICSC BOOTH REALLY WAS.
WE MAY HAVE SEEN, OKAY, WELL THERE'S A BOOTH EXPENSE, IT MUST HAVE BEEN THAT, WELL THERE'S ALL THESE OTHER ASSOCIATED COSTS AS WELL.
SO THESE ARE THE TYPES OF THINGS THAT I INCLUDED IN THE NOTES FOR YOUR REVIEW.
SO UNDER TRADE SHOWS AND CONFERENCES IS THE PLAN NOT TO GO TO THE DALLAS CONFERENCE THIS YEAR? IT'S ON HERE.
THERE'S NO, YEAH, SEE, WE DON'T PUT A BOOTH THERE.
IT'S BASICALLY THE TYPE COST IT TAKES TO DRIVE A PERSON UP OR TWO PEOPLE UP FOR A DAY TO NETWORK.
YEAH, YOU DON'T HAVE A BIG, UM, PHYSICAL PRESENCE AT RED RIVER.
OH, SO THERE'S NO REGISTRATION COST OR ANYTHING? NO, THAT, THAT MAY ACTUALLY JUST BE THE REGISTRATION FEE.
ACTUALLY, HOLD ON
SO THIS IS JUST THE PRINTING COST.
THE COST ASSOCIATED WITH ATTENDING ARE IN THE FUND 10 BUDGET BECAUSE NO EDC BOARD MEMBERS WOULD BE GOING.
SO SOME OF THE THINGS THAT I HAD TO KIND OF CONTEMPLATE HERE IS WHAT WOULD QUALIFY AS A FUND 10? WHAT WOULD MAKE SENSE FOR A FUND 10 EXPENDITURE VERSUS A FUND 35.
AND SO, BECAUSE STAFF WOULD BE THE ONLY ONES GOING TO RED RIVER AS HAS BEEN TRADITION, UNLESS YOU DIRECT OTHERWISE, WE WOULD REALLY JUST HAVE THE PRINTING FEES ASSOCIATED WITH ATTENDANCE RATHER THAN THE O THE TRAVEL AND, UH, REGISTRATION AND THINGS LIKE THAT.
SO YOU'LL SEE SOME OF THIS STUFF IN FUND 10 AS WELL.
SO THE FUND 10 IS WHAT'S GOING THAT YOU WANT THE CITY TO PAY FOR MM-HMM.
BUT THEN IS THE PLAN THAT THAT KIND OF GETS REIMBURSED THROUGH A SERVICES AGREEMENT? SO THE PROFESSIONAL SERVICES AGREEMENT, IT'S ANOTHER TOPIC FOR DISCUSSION
UM, WE'VE ASKED THAT IT BE A FAIRLY BROAD AGREEMENT IN PREVIOUS AGREEMENTS.
IT'S BEEN FAIRLY ITEMIZED AS FAR AS WHICH DEPARTMENTS ARE INCLUDED.
UM, AND STAFF FELT LIKE THAT WAS A LITTLE BIT LIMITING BECAUSE MARKETING SERVICES WERE NOT INCLUDED IN PREVIOUS YEARS AND CITY SECRETARY SERVICES WERE, WHICH I THINK WE'VE ALL SEEN THAT MARKETING HAS BEEN USED AND CITY SECRETARY HAS NOW BEEN TAKEN OVER BY YEARS.
SO THERE'S JUST, THERE WAS A LOT OF, UM, GAPS IN THE, THE COVERAGE IF YOU WANNA CALL IT THAT.
AND SO WE'VE ASKED FOR IT TO BE FAIRLY BROAD AND WE'VE JUST PROPOSED
[00:35:01]
A $300,000 PER SOME DISCUSSION, UM, AT A, AT OUR PREVIOUS BOARD MEETING.SO THAT IS A, A TOPIC FOR DISCUSSION, BUT HOW THAT GETS ALLOCATED, I'M NOT SURE HOW THE CITY, UH, HANDLES THEIR PROFESSIONAL SERVICES AGREEMENT FROM, FROM OTHER ORGANIZATIONS.
SO IF THERE ARE ANY, OKAY, SO UNDER CONTRACTUAL SERVICES WE HAVE ATTORNEY SERVICES AND THEN THIS IS WHERE YOU'LL FIND THAT $300,000 FOR THE PROFESSIONAL SERVICES AGREEMENT WITH THE CITY.
UM, WE CURRENTLY HAVE SOME CONCEPT DESIGN CONSULTING.
IN THE NOTES YOU'LL SEE EXAMPLES OF, UM, WHAT COMPANY OR COMPANIES WE'VE USED FOR THAT IN THIS LAST FISCAL YEAR.
UM, WE DID HAVE SOME TS CONSULTING AND WE ANTICIPATE THAT TO CONTINUE AS WE SOLIDIFY T THREE AND GET TS TWO UP AND RUNNING.
AND THEN ALSO EXPLORE A POTENTIAL TUS FOUR OVER THE HISTORIC DOWNTOWN AREA AS WELL.
UM, WE DID USE SOME CONSULTING SERVICES FOR THE THREE 12.
WE, UH, ANTICIPATE HAVING SOME ADDITIONAL OPPORTUNITIES FOR THREE 12 AGREEMENTS IN THE FUTURE.
AND SO THAT MAY ALSO BE A NEED AS WELL.
UH, THE OTHER ASK FROM THE BOARD IS TO SEE ABOUT, UM, JUST ANOTHER SUBLINE FOR ADDITIONAL CONSULTING SERVICES.
UM, I TRY TO BE VERY SPECIFIC IN THESE ASKS SO THAT YOU WOULD SEE EXACTLY WHERE THAT MONEY IS GOING AND FOR WHAT PURPOSES.
HOWEVER, AN EXAMPLE FROM THIS LAST FISCAL YEAR WAS THE K FREEZE AMENDMENT FOR THE DESIGN OF THE SPINE ROAD.
THAT WAS A BIG AMOUNT AND THERE'S NOT REALLY A, I DON'T KNOW THAT THERE WILL BE A NEED FOR THAT, HOW, OR THAT THAT MUCH, UM, HOW WE DO HAVE DETENTION TO FINISH DESIGNING OUT AT THE MEGA SITE.
WE ANTICIPATE SOME REGIONAL DETENTION POSSIBILITIES ON THE COTTONWOOD PROPERTIES AS WELL.
UM, THOSE TWO ARE REALLY THE ONLY ONES THAT I CAN FORESEE AT THIS POINT.
BUT, UM, I DON'T WANNA PAD THE BUDGET, BUT I ALSO DON'T WANNA HAVE TO COME BACK AND DO A BUDGET AMENDMENT EVERY QUARTER.
SO
WHERE'D THAT THE TOTAL AMOUNT COME FROM? YOU SAID MAYBE A BIG BROAD, WAS IT LIKE A PER MONTH KIND OF THOUGHT PROCESS OR WOULD THEY SAY SO I WOULD ANTICIPATE THAT IT WOULD BE A MONTHLY TRANSFER.
SO THE 300,000 DIVIDED INTO THE 12 MONTHS, UM, WOULD GIVE YOU YOUR TOTAL PER MONTH.
UM, THAT'S TYPICALLY HOW IT'S BEEN DONE IN PREVIOUS YEARS.
UM, ALSO IN PREVIOUS YEARS, IT PUT A LOT OF BURDEN ON CITY STAFF TO RECORD THEIR HOURS SPENT ON EDC RELATED ITEMS, WHICH I THINK IS UNREALISTIC
UM, SO AGAIN, THAT'S GONNA BE BOARD DISCRETION.
THIS IS JUST A PROPOSED ITEM OR PROPOSED AMOUNT RATHER BASED ON THE DISCUSSIONS THAT THE BOARD HAD AT THE LAST MEETING REGARDING AN AMOUNT THAT THEY MAY FEEL COMFORTABLE WITH.
SO WELCOME TO CHANGE THAT AND THAT'LL BE I'M SURE A ROBUST DISCUSSION.
SO THIS IS ALSO TRADITIONALLY A FAIRLY LARGE EXPENDITURE.
I KNOW IN YEARS PAST WE HAVE JUST SIMPLY DONE A 10% OF THE TOTAL BUDGET BECAUSE THAT'S WHAT IS ALLOWED, UM, FOR MARKETING SERVICES.
HOWEVER, UM, WE RARELY SPEND THAT MUCH
SO I DID GO AHEAD AND BREAK OUT THE SERVICES THAT WE CURRENTLY USE, SUCH AS PLACER AI.
THERE ARE SOME OPPORTUNITIES FOR SOME ADD-ONS, UM, INCLUDING SOME REALLY CUTTING EDGE PERSONA DETAIL THAT WOULD BE HELPFUL FOR US AS WE START TO PURSUE MORE RETAIL TENANTS.
UM, AND THEN WE DID RUN A COMMUNITY IMPACT AD THIS YEAR THAT WAS A FULL PAGE AD I WOULD LIKE TO DO TWO NEXT YEAR.
UM, SO THAT'S ACCOUNTED FOR HERE.
UH, I WOULD ALSO LIKE TO DO SOME MORE TARGETED MARKETING EFFORTS IN SOME, UM, ECONOMIC DEVELOPMENT AND RETAIL RELATED PUBLICATIONS.
AND SO I DID GET SOME PRICING INFORMATION AND THAT'S THE AMOUNTS YOU'LL SEE THERE.
UM, BOARD SUPPLIES FAIRLY NOMINAL AMOUNT IN THE GRAND SCHEME, BUT THIS IS FOR THINGS LIKE YOUR NAME BADGES AND YOUR NAMEPLATES WHEN Y'ALL ASCEND NEW POSITIONS AND UH, YOUR SHIRTS THAT GET EMBROIDERED AND JUST ALL THOSE VARIOUS ITEMS, UM, THAT THE BOARD REQUIRES EACH YEAR.
ONE OTHER JUST QUICK COMMENT ABOUT THIS.
ONE OF THE THINGS WE'RE TRYING TO MOVE AWAY FROM ARE THE SORT OF WHAT YOU WOULD CALL THE SORT OF FIXED REPORTS WHERE YOU GET ONE UMBRELLA CONTRACT WITH A GROUP, LIKE SAY A RETAIL COACH, AND YOU GET A PROFILE OF THE LABOR MARKET THAT'S BASICALLY ONE
[00:40:01]
TIME AND IT'S NOT UPDATED AGAIN FOR ANOTHER YEAR.UM, PLACER AI FOR EXAMPLE, JUST AS A COUNTERPOINT, IS A VERY INTERACTIVE, UH, PIECE OF SOFTWARE.
SO IF YOU HAVE AN OPPORTUNITY THAT COMES IN MONTH THREE THAT DIDN'T FIT IN THE PROFILE THAT YOU ORDERED FOR $50,000 FROM ANOTHER VENDOR AND YOU WANT TO GO AHEAD AND CUSTOMIZE A REPORT FOR THAT END USER, NOT ONLY IS THE EXPENSE GOING DOWN, BUT THE FUNCTIONALITY OF THE WORKS GOING UP.
SO I THINK YOU'RE GONNA SEE MORE AND MORE TECHNOLOGY APPLIED TO NOT JUST THIS SEGMENT, BUT PARTICULARLY RETAIL.
UM, AND SO WE SHOULD GET SOME SAVINGS FROM THOSE KINDS OF THINGS GOING FORWARD, BUT WE'RE ACTUALLY GETTING MORE POWER OUT OF THE DATA AND, AND IT BEING ABLE TO CUSTOMIZE IT AT THE SAME TIME.
SO, UM, TWO ITEMS ON HERE, UM, TO NOTE COSTAR AND ZOOM PROSPECTOR, UH, PER THE EMAIL THAT I SENT WITH THE BUDGET REVIEW INFORMATION, WE WERE ABLE TO LOOK INTO THOSE AND WE FEEL CONFIDENT THAT, UM, WE CAN FOREGO THE RENEWAL OF COSTAR AND ZOOM PROSPECTOR.
SO, UM, I WOULD PROPOSE ZEROING THOSE TWO ITEMS OUT.
UM, AND THAT WOULD GIVE US APPRO JUST UNDER, UH, $20,000 AS WELL.
LET'S SEE, OUR BLUE DOT CRM SOFTWARE, SO THIS IS THE REPLACEMENT WE CURRENTLY USE SALESFORCE.
UM, IT IS WONDERFUL FOR CERTAIN THINGS, BUT IT IS NOT TOO MUCH MEANT FOR ECONOMIC DEVELOPMENT.
UM, AS PART OF THE, UM, BUSINESS RETENTION OR BUSINESS RESOURCE SPECIALIST POSITION, WE DID ALSO LOOK INTO VARIOUS SOFTWARE OPTIONS TO HELP SUPPORT THAT.
AND, UM, THE DIRECTOR AND ASSISTANT DIRECTOR POSITIONS AND, UM, BLUE DOT STOOD OUT FAR AND AWAY, UM, FROM THE OTHERS THAT WE LOOKED AT AND ALSO CAME HIGHLY RECOMMENDED FROM SOME OF THE OTHER, UM, ECONOMIC DEVELOPMENT CORPORATIONS THAT WE WERE ABLE TO CONNECT WITH.
SO, UM, THAT'S OUR PREFERRED AND PROPOSED FOR THAT SOFTWARE.
AND THE REASON THAT WE WERE ABLE, SORRY, I JUST WANTED TO ELABORATE A LITTLE BIT.
THE REASON THAT WE'RE ABLE TO MOVE AWAY FROM SOMETHING THAT'S, UM, AS ROBUST AS SALESFORCE IS BECAUSE WE ARE GONNA BE ABLE TO LEVERAGE THE CITY'S NEW, UH, PROJECT MANAGEMENT SOFTWARE CALLED RII.
AND SO THAT IS REALLY HELPFUL FOR US ONCE WE GET A CLOSED DEAL AND NOW WE'RE WORKING WITH OTHER CITY DEPARTMENTS, BUT THE CUSTOMER SERVICE MANAGEMENT THAT'S REQUIRED WHEN THERE'S CONTRACTS GOING BACK AND FORTH AND REVISIONS AND REQUESTS AND THINGS LIKE THAT, THAT WE WANNA MAKE SURE WE'RE DOCUMENTING, UM, THIS SOFTWARE IS MUCH MORE, UH, SUPPORTIVE OF THAT FUNCTION.
JUST A QUICK MOMENT, UH, SECTION 5 0 5 0.103 OF THE LOCAL GOVERNMENT CORP, UH, CODE PROVIDES THAT A TYPE B CORPORATION MAY SPEND NOT MORE THAN 10% OF THE CORPORATE REVENUES FOR PROMOTIONAL PURPOSES.
GENERALLY, WHEN THERE IS, UH, AN EXPENDITURE THAT THE BOARD IS LOOKING TO DO THAT DOES NOT FIT WITHIN A TYPICAL PROJECT, UH, AND UH, IS OUTSIDE OF THAT PRO, UH, OUT OUTSIDE OF THE PROJECTS, UM, YOU WOULD GENERALLY RELY ON YOUR PROMOTIONAL AND MARKETING FUND.
AND SO HERE WITH AN ESTIMATED 5.13, UH, MILLION DOLLAR PRO, YOUR, YOUR CAP ON THOSE PROMOTIONAL MARKETING TYPE OF PROJECTS, UM, WOULD BE JUST OVER A HALF A MILLION DOLLARS.
AND SO WHILE THERE MAY BE SPECIFIC PROJECTS THAT YOU HAVE, I JUST WANTED TO LET YOU KNOW THAT YOU HAVE UP TO HALF A MILLION DOLLARS TO PUT TO, TO SPARK THERE TO PROVIDE YOU ADDITIONAL FUNDS FOR THOSE THINGS THAT DON'T FALL.
ONE OF THOSE EXAMPLES GENERALLY HAS BEEN THE PROMOTIONAL WORK THAT, UH, WE DID FOR, UH, THE MUSIC FESTIVAL, THE KOCH FEST FEST, YEAH.
BUT IF WE MOVE THAT ONE AS A NAMED PROJECT NOW, THEN THAT DOESN'T HAVE TO FALL UNDER THAT OR IT STILL DOES THAT, THAT WHAT THERE IS NOT A ALLOCATION UNDER THE PROJECTS THAT ARE ALLOWED UNDER CHAPTER 5 0 5 AND 5 0 1 FOR THAT OTHER THAN PROMOTION MM-HMM.
AND SO THAT WOULD BE A PROMOTIONAL EXPENSE BECAUSE YOU'RE GETTING THE NAME OUT, YOU'RE PROVIDING THAT INFORMATION THERE, UM, AS AN, AS ONE OF THE EXAMPLES OF YOUR EXPENDITURES THAT FALL WITHIN PROMOTIONS THAT YOU REALLY LOOK AT MORE OF A PROJECT THAN A PROMOTION.
IT'S JUST NOT A PROJECT UNDER THE, THE OTHER PORTIONS OF THE, OF THE CODE.
YEAH, THAT WAS ACTUALLY MY QUESTION WAS DIDN'T THOSE TWO, UM, HOLIDAYS IN HUTTO AND KOCH FEST NEED TO BE UNDER THE MARKETING BUDGET AND THEN UP THE NUMBER AND THEN MAYBE, I KNOW WE WERE CONSERVATIVE AT THE 3 MILLION VERSUS THE THREE AND A HALF, BUT IF WE MAXIMIZE THE PROMOTIONAL STUFF, IT'S NOT ALLOCATED TO BE SPENT, BUT IT'S THEN ALLOCATED IN THE BUDGET IF YOU HAVE SOMETHING COME UP.
AND THEN IF FINANCES, SINCE LAND SALES DON'T HAPPEN,
[00:45:01]
YOU DON'T HAVE TO SPEND IT.OR CAN THEY MAKE A BUDGET AMENDMENT AFTER THE FACT FOR THE 10%? AND THE OTHER QUESTION, WE DIDN'T SPEND ALL OF IT THIS YEAR AND THAT 10% THAT WE, THE PORTION WE DIDN'T SPEND WAS SUPPOSED TO ROLL OVER TO THIS YEAR.
UM, SO WHERE DID THAT NUMBER, WE'LL HAVE TO CHECK THAT TO SEE WHERE IT'S, WELL, THE OTHER THING TOO IS THAT THIS FISCAL YEAR IS NOT OVER, SO WE ARE STILL SPENDING, AND SO I WOULDN'T FEEL COMFORTABLE TAKING TODAY'S NUMBER AND SAYING THAT'S WHAT'S GONNA ROLL OVER.
UM, I THINK WE'VE GOT A FEW EXPENDITURES THAT WILL BE COMING OUT OVER THE NEXT 30 TO 60 DAYS.
AND SO AT THAT POINT, OR I GUESS WE CAN CALCULATE AND TRY TO GIVE A BETTER ESTIMATE OF WHAT MIGHT ROLL OVER IN THAT CATEGORY AS WELL.
UH, FOR TRAINING AND DEVELOPMENT, UM, I DID IDENTIFY A SALES TAX TRAINING THAT I WOULD RECOMMEND.
I KNOW PER OUR BYLAWS, AND I THINK I'M GONNA GO OUT ON A LIMB HERE, GEORGE, YOU'RE GONNA HAVE TO HELP ME IST THERE A STATE REQUIREMENT THAT AT LEAST ONE OFFICER TAKE THE SALES TAX TRAINING EVERY YEAR? NO.
UM, THERE ARE THREE DIFFERENT PEOPLE.
EITHER IT'S ACTUALLY THE CITY ATTORNEY OF THE CITY.
NOT THE, NOT THE LAWYER THAT DOES THE WORK, BUT THE CITY ATTORNEY OF THE CITY, THE ECONOMIC DEVELOPMENT DIRECTOR, UM, OR ONE OTHER PERSON, BUT IT'S NOT ACTUALLY A BOARD MEMBER.
THAT IS REQUIRED TO TAKE THOSE COURSES.
UM, HOWEVER, UM, OUR BYLAWS, WE INCLUDED INFORMA OR PROVISIONS THAT ENCOURAGE TRAINING FOR THE BOARD IN ORDER FOR THEM TO BETTER BE ABLE TO MANAGE AND OVERSEE AND SUPERVISE STAFF THAT ARE, THAT ARE DOING THE ACTUAL WORK.
SO, SO THAT TAX TRAINING IS $200 PER PERSON.
UH, AND I HAVE THAT ALLOCATED FOR ALL SEVEN BOARD MEMBERS AND PLANNING FOR A THIRD STAFF MEMBER.
SO THE THREE STAFF MEMBERS, WHICH IS WHAT GETS YOU TO YOUR 2000 POSTAGE IS A FAIRLY NOMINAL AMOUNT.
UH, I MIGHT START SENDING HOLIDAY CARDS, I DON'T KNOW.
SO I JUST PUT A HUNDRED DOLLARS IN THERE.
UH, WE DO HAVE SOME NICE NEW H E D C ST, UH, STATIONARY, SO MIGHT PUT THAT TO USE.
HAVE YOU GUYS SIGN SOME CARDS FOR FOLKS? MEMBERSHIP DUES AND SUBSCRIPTIONS.
CREW IS A COMMERCIAL REAL ESTATE ORGANIZATION HERE.
UH, ACTUALLY THEY'RE A NATIONAL ORGANIZATION, INTERNATIONAL ACTUALLY.
UM, BUT THEY DO HAVE AN AUSTIN BRANCH.
UH, IT'S A REALLY GOOD NETWORKING OPPORTUNITY.
UM, THE AUSTIN BUSINESS JOURNAL, I KNOW THE CITY HAS A SUBSCRIPTION, BUT I WOULD REALLY LIKE FOR US TO HAVE OUR OWN SUBSCRIPTION.
SO, UH, AS YOU KNOW, WE GET COVERED BY THE AUSTIN BUSINESS JOURNAL QUITE A BIT.
SO I THINK US BEING ABLE TO HAVE ACCESS AND KNOW WHAT'S OUT THERE, UM, IN THE AREA WOULD BE HELPFUL.
AND THEN, UH, ICS C FOR BOARD MEMBERS, THAT REGISTRATION FEE IS CALCULATED IN HERE.
UH, IT IS A DISCOUNTED MUNICIPAL RATE OF $125.
UM, IF ALL SEVEN BOARD MEMBERS WOULD LIKE TO BE INCLUDED, YOU HAVE AN $875 EXPENSE THERE.
UM, THERE IS A LOT OF GREAT INFORMATION ON THE ICSC WEBSITE AND THEY'VE ACTUALLY ADDED SOME REALLY GREAT FEATURES THAT I THINK WOULD BE REALLY HELPFUL, ESPECIALLY IN PREPARATION FOR ICSC.
SO IF YOU ANTICIPATE, ANTICIPATE SENDING SEVERAL BOARD MEMBERS AGAIN NEXT YEAR, I WOULD HIGHLY RECOMMEND THAT THEY BE, UH, ICSC MEMBERS AND HAVE ACCESS TO THOSE, UH, MATERIALS.
IF EVERY BOARD MEMBER DID THAT, IT'D BE 38 50 T E D C.
AGAIN, TEXAS ECONOMIC DEVELOPMENT COUNCIL COUNCIL.
HAVE WE BEEN, HAVE WE BEEN PART OF THAT BOARD OR IS THIS JUST A KIND OF A BUDGETING FOR EVERYBODY TO BE PART OF IT? WE ATTEND THEIR CONFERENCES AND SO, UH, AGAIN, IN FUND 10 YOU'LL SEE STAFF MEMBERSHIP LEVEL FOR THAT.
UM, THESE ARE JUST RECOMMENDATIONS AS FAR AS, UH, THE AVAILABLE AND RECOMMENDED, UM, ORGANIZATIONS THAT BOARD MEMBERS MAY WANT TO BE A PART OF.
AND Y'ALL ARE WELCOME TO TAKE ALL NONE PART, WHATEVER YOU WOULD LIKE.
UM, IS ALSO YOUR ACCREDITATION.
UM, RECOGNIZE ACCREDITATION AND ECONOMIC DEVELOPMENT FOR THE STATE.
YOU KNOW, I DEFINITELY SEE VALUE, I DON'T, I DON'T REMEMBER BEING PART OF THAT AND I'VE BEEN PART OF THIS BOARD FOR A COUPLE OF YEARS, SO YEAH, IT'S, IT'S A PRETTY COMMON DEAL.
IT DOESN'T NECESSARILY FOR EVERYBODY TO GO EVERY YEAR.
SO WE CAN CERTAINLY SAVE SOME MONEY, BUT UM, THEY ALSO HANDLE A TON OF TRAINING.
SALES TAX TRAINING AND SO ON AND SO FORTH.
THEY DO A GREAT JOB CALL COURSE IN BROWN ROCK, I THINK AT KALAHARI, UH, FEBRUARY, MARCH OF THIS YEAR.
YEAH, THAT'S ONE OF THE CERTIFICATION PROGRAMS. YEAH.
AND THEN THE WILCO EEDP, Y'ALL DECIDED TO JOIN WITH THAT, UH, THIS FISCAL YEAR, UM, AT A $10,000 LEVEL.
[00:50:01]
PUT 20,000 IN HERE IN CASE YOU ALL WANTED TO UP THAT MEMBERSHIP.UM, JUST TO PUT IN THE MAXIMUM AMOUNT THERE.
AGAIN, HAPPY TO ADJUST, UH, DE DEPENDING ON HOW THE BOARD WOULD PREFER.
ARE WE ALSO PART OF THE CHAMBER? IS THAT SUPPOSED TO BE FITTING IN THERE? YEAH, IT'S, YES.
SO THAT'S ACTUALLY ON THE FUND.
UM, WHAT ABOUT, YOU KNOW, WE'VE TALKED BEFORE AND IT'S ALWAYS BEEN A DEBATE AND I, I HAD SAID EARLIER IN THE YEAR THAT THE EDC SHOULD BUY A TABLE AND PUT IT AS PART OF THE BUDGET.
UM, CUZ I, I CAN IMAGINE THAT IT GETS INTO A POLITICAL REALM THAT THE EDC SHOULD JUST AVOID AND JUST DEAL WITH IT UNDER THEIR OWN BUDGET.
UM, BUT I MEAN IT CAN, YEAH, I THINK GRAIN SALT, ONE OF THE REASONS I'VE LEFT IT OVER IN FUND 10 IS BECAUSE IT IS NOT A RE IT'S NOT A TRADE SHOW OR CONFERENCE, IT'S NOT TRAINING AND DEVELOPMENT.
IT'S THE MEMBERSHIP PIECE IS OVER THERE.
WE COULD PUT OUR, UH, CHAMBER MEMBERSHIP ON THIS SIDE, BUT AS FAR AS PURCHASING THE TABLE, I THINK IT WOULD BE A MARKETING THING.
SPONSORSHIP, COMMUNITY OUTREACH, MARKETING UNDER A BUDGET WHERE WE DON'T NEED TO GET AN AMENDMENT OR APPROVED OR WE JUST NEED TO VOTE ON IT AS A BOARD.
AS LONG AS THE THE, THE AMOUNT THAT IS ON YOUR BUDGET HAS BEEN APPROVED BY THE, UM, COUNCIL, THEN YOUR, YOUR USE OF THOSE FUNDS AS LONG AS YOU STAY WITHIN THE PARAMETER OF MARKETING AND PROMOTION IS APPROVED.
SO I'M SAYING AS A COUNCIL PERSON, I WOULD WANNA SEE IT UNDER THIS FUND, NOT YEAH, THAT'S WHY THE CITY FUND.
YEAH, THAT'S WHAT I WAS ASKING AROUND FOR.
THAT IS, AND, AND ONE OF THE THINGS THAT I WOULD ASK FOR SOME CONSIDERATION ON WHEN WE LOOK AT FUND 35 AND FUND 10 IS THAT WE ARE TECHNICALLY OVER BUDGET IN FUND 35, WHEREAS WE ARE RIGHT ON BUDGET, WE'RE NOT INCREASING ANYTHING IN FUND 10.
AND SO IF WE'RE GONNA MOVE STUFF OVER THERE, I WOULD ASK THAT WE OFFSET SO THAT WE DO NOT INCREASE OUR, OUR DEBT AMOUNT OR OUR AMOUNT OVER BUDGET, I SHOULD SAY.
BUSINESS INCENTIVES, TSTC IS ON THERE FOR THEIR ANNUAL CONTRIBUTION.
AND THEN, UH, THIS WAS A CLEANUP ITEM TOO BECAUSE I THINK IN YEARS PAST THAT SORT OF GOT ROPED INTO PERFORMANCE GRANTS AND SO THIS YEAR WE TRIED TO MAKE THAT A CLEANER THAT THAT'S REALLY THE ONLY SORT OF ANNUITY PAYMENT THAT WE MAKE.
UM, AND SO FOR PURPOSES OF MAKING THE BUDGET EASIER TO UNDERSTAND YEAR OVER YEAR, UM, WE BROKE THAT OUT FROM THE NORMAL PROJECT INCENTIVES, WHICH GENERALLY HAVE A SHORTER SHELF LIFE JUST AND IT DOES REQUIRE A PERFORMANCE UPDATE AS WELL AS YOU HEARD FROM LISA, UM, A COUPLE MONTHS BACK.
SO WE THOUGHT THAT WAS THE MOST LOGICAL PLACE TO PUT IT SO WE COULD KEEP TRACK OF IT.
THE SMALL BUSINESS INCENTIVE PROGRAM, THIS IS SOMETHING THAT WE YEAR OVER YEAR HAVE NOT, UM, LEVERAGED.
HOWEVER, THERE'S A RENEWED FOCUS AND MOTIVATION FOR REVITALIZING DOWNTOWN AND, UM, OUR SMALL BUSINESS COMMUNITY.
UH, I DON'T KNOW IF Y'ALL HAVE SEEN SOME OF THE COMMUNICATION ON SOCIAL MEDIA ABOUT THE DOWNTOWN ALLIANCE AND THINGS LIKE THAT.
AND SO I DO THINK IT'S IMPORTANT AS AN ECONOMIC DEVELOPMENT ENGINE, UM, THAT WE HAVE FUNDS SPECIFICALLY TARGETED TOWARDS OUR SMALL BUSINESSES, WHETHER THAT'S FINISH OUT FACADE IMPROVEMENTS, CUZ THOSE ARE MORE EXPENSIVE, ESPECIALLY IN THE HISTORIC DISTRICTS.
SO I DID WANNA RESERVE SOME FUNDS FOR THAT, BUT I'M HAPPY TO TO ALTER THAT AMOUNT.
UM, PERFORMANCE GRANTS WE HAVE, EVERYTHING THAT HAS BEEN INKED IS INCLUDED IN HERE.
UM, AND IN THE NOTE YOU'LL, YOU'LL BE ABLE TO SEE FOR OUR NEW PROJECTS, UH, WHEN WE ANTICIPATE THESE GRANT PAYMENTS, UH, HITTING THE BOOKS, OBVIOUSLY THAT DOES CHANGE ALONG WITH THE CONSTRUCTION SCHEDULES AND THINGS LIKE THAT.
SO, UM, WE CAN UPDATE THOSE DETAILS FOR YOU, BUT THE PROJECTIONS ARE IN THE NOTES.
UH, ONE THING TO NOTE, KAY TONIC, UH, AGAIN, GOING BACK TO THE EMAIL THAT WAS SENT TO Y'ALL, UM, OUR CASH FLOWS SHOWED THAT THERE WAS A $10,000 PAYMENT THIS FISCAL YEAR AND THEN NOTHING MOVING FORWARD.
UH, I DID GO BACK AND REVIEW THE E DPA AND UH, I AM GONNA HAVE LEGAL TAKE A LOOK AT IT AS WELL.
IN MY LAYMAN'S OPINION, IT IS A LITTLE VAGUE ON THE ACTUAL AMOUNT THAT'S DUE.
UM, THERE'S SOME LANGUAGE IN THERE RELATING TO AN AMOUNT PER EMPLOYEE, UM, AND THAT WOULD RUN THE ENTIRE LENGTH OF THE AGREEMENT,
[00:55:01]
WHICH EXPIRES IN 2031.SO WE DO NEED TO PUT AN AMOUNT IN HERE.
UM, THEY DID NOT SUBMIT THEIR AFFIDAVIT WITH THEIR FULL-TIME EMPLOYEE COUNT THIS YEAR, SO WE WILL NOT HAVE A PAYMENT UM, THIS YEAR.
HOWEVER, THEY'RE REQUIRED TO PROVIDE THAT APRIL 15TH OF EACH YEAR.
SO IF THEY COME BACK NEXT YEAR AND THEY HAVE 20 FULL-TIME EMPLOYEES THAT HAVE BEEN THERE FOR A YEAR PER THE TERMS OF THE E D P A, WE'D BE REQUIRED TO PAY THEM $20,000.
SO, UM, I'LL BE HAPPY TO GET BACK TO YOU WITH SOME DETAILS ONCE I HAVE LEGAL REVIEW AND SEE WHAT EXACTLY WE'RE OBLIGATED TO.
IT'S A LITTLE UNCLEAR, UH, AT THIS POINT, BUT THAT WILL BE AN ADDITION TO THE BUDGET.
UM, OUR SPONSORSHIPS AND COMMUNITY OUTREACH HAS NOT CHANGED.
SO THE, THIS KIND OF GOT TO THE POINT WHERE I, I ASKED, UH, AS AN UPDATE TO, TO THIS, UM, BEFOREHAND, IS IF THEY'D PUT IN PARENTHESES ON THESE THAT ARE PUBLIC WHERE WE NOW KNOW THE NA THE THINGS OF THE PRO, WE'RE NOT GONNA CHANGE THE PROJECT NAMES.
BUT NOW THAT THEY'RE PUBLIC, WE THE ONES THAT ARE PUBLIC, CUZ THEY'RE FUNDED, WE PUT PARENTHESIS WHAT THOSE ARE.
CUZ YOU'VE GOT NEW BOARD MEMBERS, THEY HAVE NO IDEA WHAT PROJECT IN Q2 IS OR PROJECT V.
AND YOU'RE GONNA HAVE TWO NEW BOARD MEMBERS SITTING UP HERE.
I HAVE NO IDEA WHAT THEY'RE APPROVING ON A BUDGET ON WHAT IT IS.
UM, SO I, AND AND THE PUBLIC DOESN'T KNOW EITHER, BUT IT IS PUBLIC KNOWLEDGE.
SO CHENEY SAID THAT THAT'D BE SOMETHING THEY COULD DO, BUT THIS ALSO COMES BACK TO ON SOME OF THESE, IF THAT LAND SALE DOESN'T HAPPEN, THAT $600,000 ITEM GOES AWAY TOO.
SO THAT'S KIND OF, THAT'S MY POINT WHERE I, I DON'T SEE HOW YOU CAN'T LEAVE THE LAND SALE IN IF YOU'RE GONNA LEAVE THE EXPENSE.
WHILE, WHILE WE LOOK AT THE NEXT TWO, THE HOLIDAYS IN HU AND, UM, I, THE COKE FEST, WE HAVE BROUGHT THIS UP IN YEARS PAST OR IT'S BEEN DISCUSSED.
I DON'T, THEY THEY'VE ALWAYS MANAGED TO BE IN THE BUDGET, BUT AS TO WHETHER OR NOT WE WANTED TO DO MORE OF THAT SORT OF SORT OF COMMUNITY INVESTMENT TYPE PROJECT, IF YOU WILL.
OR IF WE WANTED TO KIND OF KEEP OUR MONEY FOCUSED ON DEALS THAT WERE, YOU KNOW, ESSENTIALLY MORE JOBS AND, AND SORT OF NEW INVESTMENT RELATED STAFF PUT 'EM IN BECAUSE HISTORICALLY WE'VE HAD THEM IN.
UM, BUT THE BOARDS IN THE PAST HAVE HAD SOME DEBATE ABOUT WHETHER THOSE SHOULD OR SHOULDN'T REMAIN PART OF THE ONGOING EFFORT.
IT'S A DIRECTION ITEM FROM STAFF'S PERSPECTIVE.
UH, THEY HAVE BEEN HISTORICALLY FUNDED, UM, AND WE'RE NOT RECOMMENDING YOU TAKE 'EM OUT.
BUT I THINK IT'S JUST GOOD TO FLAG THAT THERE'S A LITTLE DIFFERENCE BETWEEN INVESTING IN A VIVO, FOR EXAMPLE, AND A PUBLIC EVENT.
THAT'S SOMETHING THAT YOU GUYS ARE GONNA WANT TO ADDRESS.
SO, SO I HAD ONE THING ABOUT THAT ONE, UM, AND I KIND OF NEED FINANCE TO WEIGH IN ABOUT WHETHER IT'S HERE OR IN THE FUND.
I WOULD LIKE, AS A COUNCIL TO US LOOK AT TRYING TO SEE IF THE KOCH FEST COULD BE FULLY PAID FOR THROUGH A HOT TAX.
CUZ I THINK IT'S SOMETHING THAT WOULD BE A QUALITY PROJECT.
WE HAVEN'T EVER DONE THAT REALLY IN THE CITY.
AND SO THAT'S SOMETHING THAT I'VE DIRECTED STAFF FROM A COUNCIL POINT TO DO.
SO IF YOU BUDGET IT, THEN IT'LL BE EASY TO SAY, HEY, LET'S DO IT SOMEWHERE ELSE.
Y'ALL ARE WILLING TO PAY FOR IT.
SO, UM, THAT'S ONE PIECE THAT, I MEAN, I, YOU KNOW, I'M ONLY ONE COUNCIL MEMBER SPEAKING, BUT I KNOW THAT THAT IS SOMETHING I'VE DIRECTED STAFF TO, TO BRING TO COUNCIL FOR US TO DEBATE.
SO I DON'T KNOW IF IT MAKES MORE SENSE IF THAT'S THE CASE, IF GEORGE SAYS, HEY, IF YOU PUT IT IN THE FUND 10 THAN IT IS ON THE CITY, AND THEN THE CITY CAN THEN USE HOT TAX FUNDS TO PAY FOR THAT.
I WAS GONNA ASK FINANCE TO TALK ABOUT THAT.
THIS WAS ACTUALLY DISCUSSED TODAY.
SO THE TOTAL, UH, CONTRACT COSTS FOR KOCH FEST IS $350,000 A YEAR.
AND RIGHT NOW WE ARE EXPECTING TO TAKE IN $350,000 IN HOTEL TAX FUNDS NEXT YEAR.
THERE'S ALSO A FUND BALANCE, SO I THINK THE CITY IS PREPARED TO ABSORB KOCH FEST IF THAT'S, OR HAS THE ABILITY TO ABSORB KOCH FEST WITH THE HOTEL FUNDS.
SOUNDS LIKE WE ZERO OUT THAT ONE.
THAT'S, YEAH, KOCH FEST IS AN EXAMPLE OF A PROJECT THAT MM-HMM.
UM, THE OTHER THING THOUGH IS THERE, THERE ARE SOME CONTRACTS RELATED TO THE KOCH FEST OBLIGATIONS THAT WE WOULD NEED TO AMEND TO, TO ADJUST FOR THAT ALLOCATION.
SO I DON'T KNOW IF THAT'S A BOARD DIRECTION TO, TO YOU FOR THOSE AMENDED AGREEMENTS OR IF THAT'S FROM THE CITY, THE EXEC, THE, THE CITY MANAGER TO AMEND THOSE AGREEMENTS.
I DON'T KNOW WHERE THE AGREEMENT LIES, BUT IT'S, IT'S BOTH BECAUSE THIS BOARD WILL HAVE TO APPROVE IT AND THE CITY COUNCIL WILL HAVE TO APPROVE THOSE AMENDMENTS FOR THE CODE BEST PAYMENT.
[01:00:01]
ZERO THIS OUT AND TO MAKE THAT DIRECT STAFF TO COME BACK WITH THAT AGREEMENT TO AMEND THOSE AGREEMENTS SO THAT GOING FORWARD, KOCH FEST CAN BE PAID FORWARD FROM HOT.WE CAN HAVE THOSE READY FOR YOU AT THE NEXT MEETING ON OUR SIDE.
AND THEN, UH, LAST BUT WELL NOT LEAST ARE OUR CURRENT DEBT OBLIGATIONS.
UM, I DID DIVIDE THIS OUT INTO OUR PRINCIPAL PAYMENTS FOR OUR 2018 BOND AS WELL AS OUR $15 MILLION LOAN, UH, EXISTING FOR THE COTTONWOOD PROPERTIES.
AND THEN ALSO, UM, THE INTEREST PAYMENTS FOR EACH.
AND THOSE ARE THE TOTALS AS IS.
AND ALSO, UM, KIND OF TO BOARD MEMBER CLARK'S POINT AS WELL.
THIS IS ANOTHER AREA THAT WHEN WE PUT IN LAND SALES, THESE THINGS DECREASE, UM, FAIRLY SIGNIFICANTLY.
AND SO IT'S JUST REALLY UP TO Y'ALL HOW YOU WANT TO COUNT FOR THOSE THINGS.
UM, AS MENTIONED, THE TWO LAND SALES THAT WE DO HAVE INCLUDED IN THE CASH FLOWS ARE CURRENTLY MOVING ALONG IN THE RIGHT DIRECTION.
UM, AND WE, WE DON'T ANTICIPATE ANY REASON NOT TO INCLUDE THEM OR, OR SEE THOSE CLOSING IN THE NEXT FISCAL YEAR.
MR. MR. RAPID FIRE OVER THERE.
DO YOU HAVE RAPID FIRE FOR FUND 10 OR WOULD YOU LIKE ME TO GO THROUGH FUND 10 IN CASE SOME OF THOSE ANSWER YOUR QUESTIONS ABOUT FUND 35? THAT'LL DO FUND 10, YES.
CAN DO, UM, IN CONNECTION WITH THE, UH, KE TONIC, I HAVE THE FINAL RENEGOTIATED CONTRACT HERE, AND THE PROVISION THAT IS OPERABLE HERE SAYS THAT, UH, THIS GRANT SHALL EXPIRE WHEN THE STATED FUNDS HAVE BEEN EXPENDED.
THE STATED FUNDS FOR GRANT ONE B IS $10,000.
SO THAT WOULD APPLY TOWARDS, UP TO THE $1,000 PER, UM, EMPLOYEE FOR UP TO 10 EMPLOYEES, PROVIDED THAT HALF OF THAT MONEY IS AWARDED TO THE EMPLOYEE IN RECOGNITION, UH, THE EMPLOYEE'S ACHIEVEMENTS AS A MANUFACTURING EMPLOYEE IN THE CITY OF HU UNDER, UNDER THE TERMS. OKAY.
SO WE WOULD JUST NEED TO CONFIRM THAT THAT $10,000 PAYMENT HAS TAKEN PLACE.
YEAH, IF, YEAH, IF TO THIS POINT, YEAH, IF THAT PAYMENT HAS BEEN EXPENDED, THEN YOU NO LONGER HAVE AN EMPLOYEE GRANT OBLIGATION AWESOME.
LEMME MOVE THAT OVER AND THEN DO THE SAME EXERCISE HERE ALL THE WAY TO THE RIGHT.
UH, IT'S PRETTY, IT'S NOT COLOR CODED FOR ME.
UM, SO THIS ONE KICKS OFF WITH THE SALARY INFORMATION.
SO ALL OF THE SALARIES AND BENEFITS HAVE BEEN PRE-POPULATED IN HERE.
WE CAN'T REALLY DO A WHOLE LOT ABOUT THOSE AT THIS PARTICULAR JUNCTURE.
AND THIS DOES ALLOW FOR THE BUSINESS, UH, RESOURCE SPECIALIST AND THE INTERN.
THOSE ARE BOTH INCLUDED IN BOTH FUNDS FOR BUDGET PURPOSES.
WHERE WAS THE INTERN? WHAT'S THAT? WHERE WAS THE INTERN AGAIN? THAT IS A GOOD QUESTION.
IT WAS IN HERE WHEN I PUT IT IN HERE.
I THOUGHT THE IDEA WAS, OR WHAT, WHEN YOU EXPLAINED IT BEFORE WAS THAT YOU WERE GONNA HIRE THE INTERN THEN AT SOME POINT THEY WOULD TURN INTO THE THIRD PERSON.
SO YOU'RE BUDGETING FOR THE WHOLE YEAR, THE WAGE FOR THE, THE THIRD, ARE YOU TALKING ABOUT FOUR? YEAH, WE WOULD HAVE A TEAM OF FOUR FOR THREE MONTHS.
SO THE BUSINESS RESOURCE SPECIALIST IS A FULL-TIME POSITION STARTING ASAP IN THE NEW FISCAL YEAR.
THE INTERN WOULD BE JUST FOR THE SUMMER MONTHS OF FISCAL YEAR 24.
SO THEY ARE TWO SEPARATE POSITIONS.
SO I DON'T SEE THE INTERN IN HERE.
UM, I'LL HAVE TO CHECK WITH, UM, OUR BUDGET GURUS AND SEE WHERE THAT WENT.
AND ALTHOUGH WE HAVE THE THIRD PERSON IN THERE, IT'S NOT APPROVED.
WE'RE NOT, WE'RE ALSO NOT VOTING ON JUST BUDGETED FOR IT.
UM, SO THE HU CHAMBER GALA TABLE IS HERE.
UM, AS WELL AS QUARTERLY ECONOMIC DEVELOPMENT EVENTS.
I KNOW WE WERE ABLE TO HAVE THOSE, UH, AT LEAST A COUPLE OF TIMES.
NOT THIS CURRENT YEAR, BUT THE YEAR PRIOR WHEN I WAS ON THE BOARD.
CAUSE I ATTENDED SOME OF THEM.
AND WE WOULD REALLY LIKE TO REINSTATE THOSE.
AND SO I PUT A FAIRLY MODERATE AMOUNT IN THERE TO DO THOSE QUARTERLY.
[01:05:01]
EVENT.THOSE ARE GONNA LOOK VERY DIFFERENT FROM EVENT TO EVENT.
UM, THERE IS AN OPPORTUNITY FOR AN ANNUAL, UH, KOREA TRIP WITH WILCO E D P.
UM, WE GOT SOME ESTIMATED COSTS OF ATTENDANCE AND THAT WOULD BE FOR TWO STAFF MEMBERS TO GO, WHY ARE WE GOING TO KOREA AGAIN? SO WILCO HAS SPENT AN AWFUL LOT OF TIME VIA SAMSUNG CULTIVATING SUPPLIER RELATIONSHIPS.
AND THERE ARE ROUGHLY A COUPLE HUNDRED FIRMS THAT ARE GONNA BE COMING TO SOMEPLACE CLOSE TO THE MAIN PLANT SOMETIME OVER THE NEXT COUPLE OF YEARS, PARTICULARLY AS FAB ONE AND FAB TWO GET ROLLED OUT.
UM, WILCO FEELS AS IF, AND I TEND TO AGREE WITH HIM, THAT THE BEST WAY TO CULTIVATE THOSE RELATIONSHIPS WITH FIRMS THAT DON'T NECESSARILY HAVE A LARGE UH, US PRESENCE IS TO SPEND SOME TIME WITH THEM, WORK, WORK WITH THEM, GET TO KNOW THEM A LITTLE BIT, GAIN SOME CONFIDENCE.
YOU KNOW, WE'RE FOUR AND A HALF MILES FROM THE PLANT.
SO IF WE'RE WORRIED ABOUT LAND SALES, UM, ONE OF THE MOST GIFTED TARGET MARKETS IS OBVIOUSLY PEOPLE THAT NEED TO BE WITHIN A SHORT DRIVE OF, OF THAT PLANT.
DOESN'T MEAN WE CAN LOCATE THEM ALL.
IT REALLY DOESN'T MEAN WE CAN LOCATE ONES THAT ARE OUT OF ALIGNMENT WITH RESOURCE BASES THAT WE HAVE AND SAY THE WATER AREA.
BUT IT'S A PRETTY TARGET RICH GROUP AND IT'S REALLY HARD FOR ME TO THINK IF YOU WERE TO PARACHUTE INTO ANY OTHER PLACE, ANYWHERE THAT YOU'D HAVE A CAPTIVE AUDIENCE LIKE THAT.
UM, THAT HAS A MOTIVATION, A BUSINESS MOTIVATION TO NEED TO BE SOMEWHERE NEAR THE COMPANY THAT THEY'RE, UH, RELIANT ON.
SO WE'RE GONNA GO ONCE TO SEE WHAT THAT FEELS LIKE AND LOOKS LIKE WHEN YOU'RE ON THE GROUND.
UM, SAMSUNG'S HANDLING ALL OF THE LOGISTICS, THEY'RE HANDLING ALL OF THE CUSTOMER TEE UP.
SO THIS SHOULD BE A RELATIVELY SEAMLESS, UH, PROCESS AND IT SHOULD GIVE US AN IDEA AS TO JUST HOW RICH AND TARGET RICH THAT MARKET IS.
I KNOW THE COUNTY HAS EVERY INDICATION THAT THEY WANT TO GO BACK.
UM, AND I'M PRETTY SURE AS LONG AS THE CURRENT FOLKS IN COUNTY LEADERSHIP ARE INVOLVED, THEY'LL BE MAKING RELATIVELY FREQUENT PILGRIMAGES.
WE DON'T HAVE TO GO EVERY TIME.
THIS IS SIMPLY AN ALLOWANCE TO ALLOW US TO GO IN THE EVENT THAT WE THINK THIS IS AS PRODUCTIVE AS WE FEEL IT'S PROBABLY GOING TO BE.
UM, BUT AGAIN, IT'S LIKE EVERYTHING ELSE IN SALES, WHETHER YOU'RE GOING TO VEGAS OR YOU'RE GOING TO SEOUL OR YOU'RE GOING TO CHICAGO, UH, IF YOU DON'T REPRESENT YOURSELF, UM, YOU PRETTY MUCH CAN'T COUNT ON SOMEONE ELSE GOING AND DOING THAT LIFT FOR YOU.
UM, IF IT WEREN'T FOR THE SIZE OF THE SAMSUNG INVESTMENT, YOU KNOW, YOU MIGHT LOOK AT SOMETHING LIKE A KOREA TRIP AS KIND OF A NICE TO HAVE.
UM, BUT THIS IS A PRETTY UNUSUAL OPPORTUNITY IN ECONOMIC DEVELOPMENT.
SO I THINK IT BEHOOVES US TO AT LEAST SPEND A LITTLE BIT OF TIME LAYING INTO THIS, PUTTING OUR SHOULDER TO THE WHEEL A BIT, SEEING WHAT COMES OUT OF THESE RELATIONSHIPS.
LIKE ANY TRIP, THERE ARE GONNA BE TRIP REPORTS, THERE'S GONNA BE EXPLANATIONS OF WHAT HAPPENED, THERE'S GONNA BE FOLLOW UP.
UM, AND OBVIOUSLY IF WE DON'T THINK IT'S PRODUCTIVE, WE'LL STOP.
UM, BUT THAT'S THE REASON IT'S IN THE BUDGET IS IS THE PERSON WHO SPENT THE LAST 20 YEARS TRAVELING TO KOREA FOR RELATIONS WITH THE SEMICONDUCTOR INDUSTRY, WHICH IS WHAT THIS IS.
AND THE SUPPLIERS, IT'S CRITICAL.
THE ROI RETURN ON THIS, EVEN JUST LANDING ONE WOULD MORE THAN MAKE IT WORTH GOING.
SO, UM, YOU KNOW, THAT WOULD BE, UH, YOU KNOW, SPEND A LOT OF TIME I THOUGHT POINTED OUT.
I THOUGHT I WOULD JUST POINTED OUT AS, AS SOMEBODY FROM HUDA LOOKING IN WOULD SEE AN ANNUAL TRIP TO KOREA AND, AND, AND ASK THOSE QUESTIONS.
SO I'M GLAD YOU GUYS WERE ABLE TO EXPLAIN IT.
SO THIS IS THE ONLY LINE ITEM FOR THIS CATEGORY BETWEEN FUN 10 AND FUN 35.
WE TYPICALLY USE OUR PCARDS ANYTIME THAT WE PURCHASE FOOD FOR CLIENT MEETINGS AND THINGS LIKE THAT.
UM, IT'S JUST MORE EFFICIENT FOR US TO KEEP IT IN FUND 10 FOR, FOR BOOKKEEPING PURPOSES.
UM, SO THERE IS A SLIGHT INCREASE HERE, UH, FOR VARIOUS WORKSHOPS AND CLIENT VISITS THROUGHOUT THE YEAR.
UH, ALSO JUST TO NOTE, CLIENTS ARE NOT ALLOWED TO PURCHASE FOOD FOR STAFF.
SO IF WE HAVE MEETINGS WE THAT MIGHT REQUIRE FOOD, UH, THAT BURDEN WOULD BE ON, ON STAFF TO DO SO.
SO THIS IS WHERE YOU'LL SEE KIND OF THE COUNTERPART TO THE BOARD MEMBER, UH, REGISTRATIONS, UH, HERE FOR ICSC LAS VEGAS AND RED RIVER.
SO THERE'S YOUR DALLAS ONE, UH, ACCOUNTED FOR OVER HERE.
[01:10:02]
FUEL AND MILEAGE, UM, AGAIN, THIS IS THE ONLY LINE ITEM BETWEEN THE TWO FUNDS.UM, SO THIS IS JUST GONNA BE OTHER CITY VISITS.
LIKE FOR EXAMPLE, EARLIER THIS YEAR WE WENT TO SMITHVILLE, UM, TO TALK WITH THEIR WORKFORCE DEVELOPMENT TEAM AND THINGS LIKE THAT.
SO JUST THESE LITTLE DAY TRIPS THAT MAY COME UP THROUGHOUT THE YEAR.
SO WE WOULD HAVE SOME, UH, OPPORTUNITY FOR MILEAGE CHENEY, THE TRAVEL AND HOTEL FOR, THAT'S FOR YOU AND BOB.
AND THEN THE OTHER, UH, 35 WAS FOR, OKAY.
SO ANY, ANY AND ALL ESTIMATES THAT I DID ARE INCLUSIVE OF HAVING A THIRD STAFF MEMBER.
THE ONLY EXCEPTION TO THAT IS THE IC LAS ICSC LAS VEGAS.
IT STILL ONLY ACCOUNTS FOR TWO.
I WILL NOT BE ATTENDING NEXT YEAR.
SO, AND I'M SORRY, I, I, I SAW SOMETHING AND I DON'T KNOW IF YOU GOT TO IT OR NOT YET, BUT DID WE, DID WE DO A CAR ALLOWANCE? WE DO, UH, CURRENTLY THAT'S FOR THE DIRECTOR ONLY.
AND THAT'S WITHIN, I, YOU KNOW, THAT'S SOMETHING FINANCE CAN ADDRESS TO BE HONEST WITH YOU, THAT'S BEEN IN THE BUDGET HISTORICALLY AT THE CITY.
I, I DON'T HAVE A LOT OF LINE OF SIGHT INTO, I MEAN THERE, THE ADVANTAGE TO IT IS THAT YOU DON'T PAY ANY ADDITIONAL REIMBURSEMENT.
SO YOU, IF I DRIVE, I, I KNOW THIS WAS A TOPIC ON, UH, I, I FEEL LIKE IT WAS A TOPIC ON THE, UM, FOR THE CITY SIDE FOR SOME, FOR SOME PEOPLE DURING THE LAST REGIME CHANGE.
UM, AND THEY WERE QUESTIONING A LOT OF THAT AROUND THAT.
SO I DON'T KNOW WHAT THE GUIDANCE IS OR IF THAT'S A NORMAL THING.
UM, WELL HERE'S THE GREAT PART.
THAT'S EFFECTIVELY NOT OUR PROBLEM.
AND THERE'S PROBABLY A BETTER WAY OF PHRASING THAT, BUT WE HAVE NO CONTROL OVER FUND 10.
JUST SAYING AT A FUNDAMENTAL LEVEL, OURS IS ONLY FUND 35.
SO REALLY THE, THE PURPOSE OF REVIEWING THE FUND 10 IS SO THAT YOU GUYS CAN SEE KIND OF THE COUNTERPART TO YOURS, RIGHT? SO YOU CAN SEE WHERE STAFF IS COVERED FOR DIFFERENT THINGS AND WHERE OTHER TRADE SHOWS AND MEMBERSHIPS AND THINGS LIKE THAT.
SO THAT AS YOU'RE ADJUSTING FUND 35, WE CAN SEE WHERE TO PULL OR PUSH FROM WITH 10, UH, THE FUND 10 AS WELL.
SORRY, THIS IS A LITTLE AWKWARD FOR ME COMING FROM THE OTHER ONE.
UM, IS THERE A REASON FOR THE PROFESSIONAL SERVICES AGREEMENT IN THIS ONE? SO NOT REALLY FOR THE PROFESSIONAL SERVICES AGREEMENT.
THIS AGAIN, ANYTHING IN FUND 10 IS GONNA HAVE TO FOLLOW THE CITY PROCUREMENT PROCESSES.
SO THIS IS ANOTHER THING TO CONSIDER WHEN YOU'RE LOOKING AT WHAT THINGS TO OFFSET OR RELOCATE OR PROPOSE IN OTHER AREAS.
SO IN PREVIOUS YEARS, THIS AMOUNT I BELIEVE WAS THE PROFESSIONAL SERVICES AGREEMENT BECAUSE THE AMOUNT LINES UP.
I DON'T KNOW THAT FOR CERTAIN.
UM, BUT IT SEEMS THAT THE PROFESSIONAL SERVICES AGREEMENT IN YEARS PAST WAS, OR SORRY, LET ME START OVER.
PROFESSIONAL SERVICES CATEGORY WAS DOUBLE COUNTED IN PREVIOUS YEARS.
SO PREVIOUSLY WE HAD SALARIES OF LIKE 194,000 AND THEN WE HAD MOVED THAT INTO PROFESSIONAL SERVICES, BUT WE ALREADY HAD PROFESSIONAL SERVICES IN THE OTHER FUND AS WELL.
SO IT LOOKS LIKE WE HAVE $400,000 IN PROFESSIONAL SERVICES WHEN IN FACT WE HAVE ABOUT HALF THAT.
SO, UM, THAT'S SOMETHING THAT WE'RE WORKING THROUGH WITH FINANCE AND THE CITY MANAGER TO MAKE SURE IT IS ACCOUNTED FOR LIKE A DUE TO DO FROM, RATHER THAN SHOWING AS AN EXPENSE FOR BOTH A FUND 10 AND A FUND 35.
CUZ IT, IT LOOKS LIKE TO ME AS SOMEONE WHO MAYBE WANTING TO GO OUT FOR OR TO BRING A, A PROPOSAL TO YOU FOR PROFESSIONAL SERVICES, IF IT LOOKS LIKE WE HAVE $400,000 BETWEEN THE TWO ACCOUNTS, WE'RE GOOD.
BUT IF IT'S ONLY HALF OF THAT, THAT'S A VERY DIFFERENT PICTURE.
AND SO WE JUST WANNA MAKE SURE WE'RE BEING VERY CLEAR.
YEAH, LOOK AT THAT AND YEAH, EITHER MOVE IT OVER OR GET RID OF IT.
SO THIS ISN'T THE PROF PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY AND THE EDC.
THIS WOULD BE FOR, UM, OTHER CONTRACT SERVICES THAT WE MAY NEED FOR ECONOMIC DEVELOPMENT, UM, SUCH AS ANY DESIGN SERVICES.
THIS IS JUST ANOTHER BUCKET FOR THOSE THINGS.
UM, AS I SPOKE ABOUT IN FUND 35, YOU MAY WANNA CONSIDER PUTTING AN ADDITIONAL 50 TO A HUNDRED THOUSAND DOLLARS.
I'M NOT SURE WHAT YOU WOULD FEEL COMFORTABLE WITH FOR THINGS SUCH AS THE DESIGN OF THE DETENTION CENTER OR DETENTION PONDS ON BOTH OF OUR PROPERTIES AND THINGS LIKE THAT.
SO THOSE THINGS HAVE NOT BEEN INCLUDED IN THE BUDGET.
SO THIS IS ANOTHER AREA WHERE AS PROJECTS COME UP OR NEEDS COME UP FOR THE VARIOUS PROJECTS, WE WOULD HAVE ANOTHER BUCKET TO DIP INTO.
HOWEVER, IT DOES HAVE TO FOLLOW THE PROCUREMENT PROCESS.
SO, UM, IT DOES TEND TO BE A LITTLE BIT SLOWER.
IT'S NOT AS NIMBLE AS FUND 35.
OKAY, LET'S SEE, WE DON'T HAVE ANY OUTSIDE PRINTING OVER HERE.
UM, THE SOFTWARE LICENSING, UH, THIS IS THE CURRENT, UH,
[01:15:01]
MODELING SOFTWARE THAT WE USE FOR, UH, CALCULATING INCENTIVES AND PAYBACK AND ALL OF THAT.UM, AND THEN WE'VE ALSO ADDED A LINKEDIN LEARNING LIBRARY EDITION.
UH, WE'VE BEEN ABLE TO SAVE SOME MONEY WITH THAT BY GOING INTO A COST SHARING WITH HR AND THE LIBRARY FOR THAT.
SO IT'S PRETTY MINIMAL INVESTMENT AND WE PLAN TO LEVERAGE THAT FOR OUR BUSINESSES TO HELP WITH UPSKILLING THEIR WORKFORCE.
AND THAT'LL BE A TOOL THAT THE BUSINESS RESOURCE SPECIALIST USES AS WELL.
PER, PER PER PERSON IT'S 2,500 PER DEPARTMENT.
SO APPROXIMATELY IT'S ACTUALLY $2,333 AND 33 CENTS BETWEEN THE THREE DEPARTMENTS.
SO IT'S ABOUT SEVEN GRAND TOTAL AND IT'S UP TO 50,000 USERS, UH, TRAINING AND DEVELOPMENT.
SO WE HAVE A VARIETY OF STUFF OVER HERE THAT IS STAFF RELATED, THUS IT IS UNDER FUND 10.
AND THERE'S THAT BASIC COURSE AND TESTING THAT WAS REFERENCED EARLIER.
SO JUST FROM A A CITY POINT, WE'RE SHOWING THERE'S $484,000 IN COST, BUT FROM FUND 35, WE'RE ONLY SAYING THAT WE'RE GONNA PAY BACK THE CITY 300,000 OF THAT, WHICH IS LIKE 60% OF THE COST.
IS THAT HISTORICALLY WHAT WE'VE DONE OVER THE YEARS, NOT EVEN CLOSE
SO WHAT HAVE WE TYPICALLY DONE IN THE PAST? UH, SO IN THIS CURRENT FISCAL YEAR, I BELIEVE THE AMOUNT IS $30,000 FOR THE YEAR.
AND OUR BUDGET, IF YOU LOOK UP AT THE TOP, IT'LL SHOW YOU IT'S ONLY A DOLLAR OVER WHAT IT IS FOR THE CURRENT FISCAL YEAR.
SO THE CURRENT FISCAL YEAR'S BUDGET WAS 4 0 9 3 17.
SO IN THE, IN THE CURRENT FISCAL YEAR, UM, YOU'RE CURRENTLY PAYING FOR A HUNDRED PERCENT OF CHENEY'S SALARY AND BENEFITS AND YOU PAY ABOUT 66% OF BOB'S SALARY AND THEN THE CITY PICKS UP THE BENEFITS.
SO THAT COST ALONE IS 300,000 AND THAT'S WHAT YOU'RE TRANSFERRING THIS YEAR.
SO THEN WHAT WAS TRANSFERRED IN 20 UH, 22 WAS $560,000.
AND WHAT WAS TRANSFERRED LAST YEAR, UH, WAS ABOUT $250,000.
I'M SORRY, I THOUGHT THE QUESTION WAS ON THE CITY SIDE, THAT COMPARISON NOT WHAT THE EDC HAS PAID FOR, BUT WHAT THE CITY WELL CUZ I WAS, MY POINT IS YOU COULD HAVE IT IN THIS FUND, BUT THEN IF THE EDC WAS COVERING THE FULL AMOUNT, WHICH IT SOUNDS LIKE THEY WERE WITH THE 500,000 RIGHT? IN 2022, RIGHT? IT WAS $560,000 WAS THE ACTUAL, IS WHAT WE TRANSFERRED FROM THE EDC TO THAT.
SO I JUST WONDER IF THIS IS GONNA CREATE A PROBLEM WHEN WE HAVE THIS LEVEL OF DETAIL AND COUNSEL'S GOING THROUGH THIS LINE ITEM THAT THIS GETS SLASHED AND THEN EDC DOESN'T THINK THEY'RE GETTING WHAT THEY THINK THEY'RE GETTING.
I JUST, SO WE'VE, WE'VE RECEIVED DIRECTION FROM THE CITY MANAGER THAT HIS INTENT IS TO TAKE THE PROFESSIONAL SERVICES AGREEMENT AMOUNT FROM THE E D C TO THE CITY DOWN TO AS CLOSE TO ZERO AS POSSIBLE OVER THE COMING YEARS.
SO HE IS OPEN TO THE 300,000 AMOUNT BECAUSE HE IS NOT GONNA BATTLE YOU GUYS IF YOU WANNA GIVE THE CITY MONEY.
BUT HIS GOAL IS TO DECREASE THE PROFESSIONAL SERVICES AGREEMENT AMOUNT FROM THE EDC TO THE CITY DOWN SO THAT ALL OF THE FUNDS ARE, AS MUCH OF THE FUNDS AS POSSIBLE CAN BE USED FOR TYPE FOUR B PURPOSES.
SO, UM, AND THAT'S, THAT'S BEEN THE INDUSTRY STANDARD MM-HMM.
AND AND THE OTHER ALLOCATION IS THAT WHILE STATE LAW REQUIRES YOU TO PAY AN AMOUNT, WHAT THAT AMOUNT IS IS UP TO THE ORGANIZATIONS TO AGREE TO.
THAT'S, THAT'S WHY YOU SEE A CHANGE HERE BECAUSE LIKE FOR INSTANCE, ANOTHER PROJECT WE HAVE IS AN ISSUE WHERE WE'RE GOING TO TRY TO, UH, DEFER IMPACT FEES MM-HMM.
AND SO NOW WE'RE TAKING MONEY FROM AN OPEN AREA AND PUTTING IT IN IT TO A VERY RESTRICTED AREA IN THE CITY.
SO THERE'S, THERE'S THIS BACK AND FORTH BETWEEN THE CITY ON PROJECTS ALL THE TIME, SO RIGHT, RIGHT.
AND SO THE CITY'S PREPARED TO TAKE WHATEVER AMOUNT THAT Y'ALL, UM, FEEL IS REASONABLE.
WHETHER THAT'S, AND AND I DID A CALCULATION AND I THINK THE TOTAL AMOUNT IF YOU PAID FOR ALL THE SERVICES YOU'RE CURRENTLY RECEIVING WOULD BE IN THE NEIGHBORHOOD OF $600,000.
[01:20:01]
IF, IF YOU, IF YOU BELIEVE THAT YOU HAVE INCENTIVES TO BRING BUSINESS INTO THE CITY AND THAT THE MONEY'S BETTER SPENT PROVIDING THOSE INCENTIVES AND YOU WANNA NEGOTIATE WITH THE CITY FOR A LOWER AMOUNT, UM, AND AND TO GEORGIA'S POINT, YOU, YOU NEED TO, TO ACTUALLY PAY FOR SERVICES.SO THE LOWEST AMOUNT THAT I WOULD ASK YOU TO NEGOTIATE WOULD BE $12, WHICH IS A $1 TRANSFER PER MONTH.
CUZ THAT MAKES IT EASY FOR ACCOUNTING
SO SOMEWHERE BETWEEN $12, 10, 12 AND 600,000 IS WHERE YOU NEED TO SETTLE.
SO, SO MY THOUGHT AS A COUNCIL PERSON, JUST BECAUSE I LIKE TO SEE NUMBERS AT LIKE A WORST CASE AND THEN BE ABLE TO MOVE BACK, I'D LIKE TO SEE, AND IF WE, WE GET THE BUDGET, IF WE CAN ASSUME WE'RE AT THE $12, MAYBE THEY PRESENT THAT, BUT AT LEAST WE CAN SAY THAT AND WHAT DOES THAT AFFECT THE TAX RATE? WHERE ARE WE AT SO THAT WE'RE TRULY GROWING THE CITY IN THE FUTURE AS A PARTNERSHIP? CUZ I FEEL LIKE THE EDC IN MY OPINION, HAS TAKEN ON A LOT THAT THE CITY HAS DUMPED ON THEM.
SO I THINK WE NEED TO KIND OF HELP THEM BACK SOME, YOU KNOW, AND UH, AND IF I LOOK AT JUST THE DEBT SERVICE OF SOME OF THE THINGS THAT HAVE HAPPENED IN, SO, SO IF WHAT YOU ARE DOING CURRENTLY IN THIS CITY IS PROVIDING GROWTH AND INCREASING THE ASSESSED VALUATION WITHIN THE CITY AND IS CAUSING A LOWERING OF THE CITY'S TAX RATE FOR ITS CITIZENS.
SO YOU CAN SEE THE ECONOMIC BENEFIT THAT'S HAPPENING FROM WHAT'S GOING ON WITHIN THIS GROUP.
AND THE OTHER POLICY ISSUE THAT YOU CAN DISCUSS OR JUST, OR DECIDE BOTH HERE AS WELL AS ON COUNCIL IS THAT, YOU KNOW, YOU'RE GOING TO HAVE A CITY ENGINEER THAT'S GONNA WORK FULL-TIME WHETHER THE ECONOMIC DEVELOPMENT CORPORATION EXISTS OR NOT, AND THEY'RE GOING TO BE PROVIDING SERVICES TO THE PUBLIC FOR FREE.
AND THAT'S AN OBLIGATION THAT THE CITY HAS.
AND SO WHILE YOU MAY CONTACT THE CITY ENGINEER AND HAVE ACCESS TO HIM, THAT ALLOCATION IS NO DIFFERENT AT FROM AS AN OBLIGATION THAT THE CITY HAS THEN WITHOUT AN MEETING STATE.
AND SO THAT, THAT'S THE POLICY WITH REGARDS TO HOW, WHY THERE CAN BE SUCH A, A HUGE DIFFERENCE BETWEEN $600,000 AND $12, RIGHT? BECAUSE THERE'S ALL OF THOSE KIND OF CONSIDERATIONS THAT ONE HAS TO MAKE THAT DECISION.
AND I'VE TAKEN THE STANCE THAT THE FINANCE DEPARTMENT FOR THE CITY IS ALSO YOUR FINANCE DEPARTMENT.
SO WHETHER YOU USE US OR NOT, THERE WILL BE A REPRESENTATIVE HERE AT EVERY ONE OF YOUR MEETINGS IN CASE YOU HAVE A QUESTION.
BECAUSE IF YOU HAVE A FINANCIAL QUESTION, SOMEBODY NEEDS TO BE THERE TO ANSWER IT.
SO WHETHER YOU'RE PAYING A PENNY FOR THAT SERVICE OR WHETHER YOU'RE PAYING $600,000 FOR THAT SERVICE WILL BE HERE FOR YOU.
YOU'RE GOING LOWER AND LOWER EVERY TIME YOU GET UP THERE.
AND, AND I THINK
I MEAN, THERE'S A LOT OF COSTS THAT ARE SUPPORTING THE EDC, BUT THEN THE EDC IS ALSO SUPPORTING THE CITY.
IT'S A PARTNERSHIP AND, AND I BELIEVE THAT THE CITY REALIZES, AND HOPEFULLY YOU CAN BACK ME UP ON THAT, BUT IT IS A PARTNERSHIP AND THAT YOU'RE PROVIDING A GREAT VALUE TO THE CITY AND WHAT YOU DO.
AND SO THAT'S WHY IT'S A NEGOTIATED TRANSFER AMOUNT.
AND SO YOU NEED TO LOOK AT YOUR BUDGET AND DECIDE WHAT AMOUNT YOU WANNA PRESENT BEFORE THE CITY AND SAY, YOU KNOW, WILL YOU PROVIDE THE LEVEL OF SERVICE WE NEED FOR X AMOUNT? AND I BELIEVE THAT WHATEVER AMOUNT YOU PUT ON THE TABLE, THE CITY'S PROBABLY GONNA SAY YES, WE AGREE TO THAT AMOUNT.
STAFF TRIED TO PICK A NUMBER THAT WE THOUGHT WAS MATERIAL, BUT KIND OF IN THE SAME GENERAL FRAME AS TO WHAT WE'VE BEEN DOING IN YEARS PAST AND NOT A DOLLAR FOR DOLLAR MATCH, BUT SOMETHING THAT SHOWED OUR GOOD FAITH.
AND I, I REALLY DO BELIEVE THAT THE MANAGER HAS EVERY INTENTION OF MAKING SURE THAT NUMBER GETS AS SMALL AS IT POSSIBLY CAN BE AS EACH YEAR GOES BY.
I THINK, BY THE WAY, NOT TO CHANGE THE SUBJECT, BUT I THINK WE'VE HIT ALL OF THE MAIN PIECES OF FUND 35 AND FUND 10, I BELIEVE.
SO NOW WOULD BE AN OPPORTUNE TIME IF THERE ARE LINE ITEM QUESTIONS OR JUST GENERAL QUESTIONS TO SORT OF WEIGH IN.
WELL, I WAS JUST GONNA GIVE SOME FEEDBACK, CHANEY, IS THERE ANY WAY OF CHANGING IT? IT SHOWS LIKE ONE X
[01:25:01]
A THOUSAND AND THEN THE TOTAL BUDGET IS A THOUSAND, BUT YET WE'LL SEE IT, IT'S FOR THREE PEOPLE.IS THERE ANY WAY OF PUTTING IT THREE AT $333 AND THAT EQUALS THE A THOUSAND? OR IS IT SURE.
SO, UM, IT'S JUST GONNA MAKE A MUCH LONGER BUDGET BECAUSE WHAT THAT'S GONNA DO IS EVERY SUBLINE IS GONNA THEN BE MULTIPLIED OUT.
SO I HAVE TO DO SUBLINES TO THE SUBLINES
SO FEEL LIKE, SAY FIVE PEOPLE GOING TO THE ED OR ICSC, IT'S GONNA SHOW FIVE SEPARATE LINES ON THAT.
YOU, YOU CAN HAVE FIVE LINES, YOU CAN HAVE 10 IF YOU'VE GOT THAT MUCH EXPENSE.
SO THE, THE DIFFERENCE, THE EFFECT THAT HAS ON YOU, BECAUSE THE, THE EXPENDITURES HAVE TO BE APPROVED BY COUNSEL IS THAT IF THEY'RE BROKEN OUT BY PER BY PERSON, THEN THAT'S A CAP PER PERSON ATTENDEE.
IF IT'S AN ALLOCATION THAT'S GENERALLY FOR THAT PROJECT, THEN ONE PERSON COULD HAVE A REALLY GOOD TIME
WELL THAT'S, THAT'S NOT GOOD EITHER.
SO THAT, THAT'S YOUR POLICY ISSUE.
UM, SO THIS IS THE FIRST YEAR THAT WE'VE HAD CLEAR GOV.
SO THIS WAS EVERYONE'S FIRST GO AT THIS.
AND SO, UM, I THOUGHT THIS WOULD BE THE MOST CLEAR WAY TO DO THAT WITHOUT GETTING REAL LENGTHY IN EACH LINE.
SUBLINE SUB SUBLINE, UH, WHICH IS WHY I CREATED A NOTE FOR PRETTY MUCH EVERY LINE TO SPELL ALL THOSE, UH, CALCULATIONS.
I DUNNO IF THIS MAKES, MAKES YOU MORE OR LESS COMFORTABLE, BUT WE ARE ALSO HAVING ONE-ON-ONES WITH THE MANAGER AND FINANCE THIS WEEK OR EVERY DEPARTMENT IS, SO THERE MAY BE SOME ADJUSTMENTS TO THIS JUST BASED ON GETTING EVERYTHING ON A KIND OF A UNIFORM LEVEL.
WELL, SOME OF THIS STUFF MAY, YOU KNOW, IT'S A THOUSAND DOLLARS BETWEEN TWO PEOPLE.
YOU KNOW, UH, $10,000 FOR, YOU KNOW, WHAT IS THAT 10 PEOPLE, ONE PERSON, YOU KNOW, IT'S THING, YOU SEE WHAT I'M GETTING AT IS IT, IT, IT, IT JUST SMALL NUMBERS.
IT'S, YOU KNOW, WHEN YOU SHOW A MEMBERSHIP OF $1,500 OR 15,000 OR SOMETHING LIKE THAT, IT'S LIKE, I THINK, UM, PERSONALLY JUST HEARING SOME FEEDBACK FROM HOW SOME OF THE, THE MEETINGS HAVE GONE AND BUDGET PROCESS THUS FAR, MY CONCERN WOULD BE THEN DO I ALSO BREAK OUT EVERY SINGLE ONE OF THESE EXPENSES PER PERSON? SO THEN THEY'RE GONNA SEE PER PERSON, PER DIEM, PER THIS, PER THAT.
AND THEN WE'RE REALLY LOOKING AT LIKE A FULL PAGE OF, OF EXPENSES FOR WHAT COULD BE, I DON'T KNOW.
I LIKE THAT LEVEL OF DETAIL, BUT YOU KNOW, AGAIN, I, IF I'M ON MY PHONE OR I'M JUST LOOKING AT THE GENERAL NUMBERS AND SEEING IT PRIOR TO CLICKING ON THE NOTE, UM, SOME OF THESE NUMBERS STAND OUT AND, AND I DON'T KNOW, I ALWAYS PUT MY HAT, I PUT MY HAT ON FOR THE EDC, BUT THEN I PUT MY HAT ON AS IF I'M IN THE CONSUMER OR THE CITIZEN LOOKING IN AND SEEING SOME NUMBERS GOING, WOW, THAT LOOKS LIKE A GREAT TRIP IN VEGAS.
I MEAN WE'RE SPENDING 15 GRAND AND IT'S LIKE, NO, IT'S FOR THIS AND THAT AND THAT AND THIS, AND THERE'S ACTUALLY FOR SEVEN PEOPLE AND BLAH, BLAH, BLAH.
SO I MEAN, IT IT, AND I GUESS I WOULD DEFER TO HOW THE CITY'S GONNA PLAN TO SHARE THIS WITH THE PUBLIC.
UM, IF THEY ARE GONNA DIRECT PEOPLE TO LEVERAGE THE NOTES SECTION, THEN THAT'S FINE.
IF THEY ARE GONNA HAVE EVERYTHING BROKEN OUT, WE JUST HAVEN'T BEEN GIVEN THAT DIRECTION.
THAT'S JUST MY PREFERENCE, SO YEAH.
YEAH, SO WE'LL, WE'LL ADHERE TO WHATEVER THEY ULTIMATELY DECIDE AS FAR AS HOW, HOW GRANULAR TO GET IN EACH SUB SUB SUB SUB LIGHT ITEM.
MY ONLY REQUEST THAT WHATEVER THE CITY DOES THAT, WE MIMIC THAT.
SO WE HAVE ONE REPORT THAT'S DONE ONE WAY AND THE CITY'S KIND OF GOT THE GORILLA VERSUS THE EDC BOARD.
IT IS JUST, AGAIN, I LOOK AT THIS AND IT SAYS LIKE THE, THE BASIC ED COURSE, 800 BUCKS SOUNDS HIGH, RIGHT? I MEAN, BUT THEN YOU BREAK IT UP AND IT'S LIKE, OH, IT'S FOUR PEOPLE.
IT'S LIKE, WELL THEN IT SOUNDS IN LINE.
SO I MEAN I I, I DON'T KNOW, AGAIN, I WAS JUST ASKING YOU IF YOU COULD PUT FOUR LIKE AS USING THAT AS AN EXAMPLE, UM, TO SHOW THAT IT'S $200, WHICH EQUALS $800 FOR THE TOTAL BUDGET VERSUS WHAT IT SHOWS IN THIS, WHICH AGAIN, SOME OF THE SMALLER NUMBERS ISN'T GONNA MATTER, IT'S JUST THE LARGER ONES OR THE ONES THAT DON'T LOOK IN LINE WITH, UM, EVERYDAY THING IS, IS WHAT I WOULD QUESTION IF I WAS LOOKING IN ON THINGS AND, AND I THINK IT CAN, I THINK YOU'RE COMPLETELY RIGHT AND THAT'S PROBABLY HOW THE CHANGE SHOULD BE BECAUSE THERE WOULDN'T HAVE A ONE TIMES THE NUMBER, RIGHT.
IF THAT NUMBER COULDN'T BE FOUR.
SO ALL HE'S WANTING IS, IS NOT, IT'D BE A BUNCH OF SUBLINES JUST THAT IT SAYS IT'S THIS DANG, FOUR TIMES, FOUR TIMES NOW IT'S ONE FOURTH, THE VALUE TIMES FOUR.
I APPRECIATE YOUR NOTES, CHANEY, BUT I JUST USE THAT AS AN EXAMPLE AND I LIKE THE NOTES STILL THERE.
I GIVE THAT GIVES EVEN MORE GRANULARITY AND THERE YOU GO.
IT'S FOR FOUR NIGHTS, RIGHT? AND, AND, AND IT MAKES SENSE.
BUT VERSUS A HOTEL NUMBER FOR 800 BUCKS COULD BE A VERY NICE ONE.
TO, YOU KNOW, RANDALL'S POINT, I WOULD DEFER TO WHATEVER THE CITY IS DOING.
I THINK THAT EVERYBODY THAT SITS UP HERE, OR AT LEAST THE GUYS THAT HAVE BEEN UP HERE LONGER, UM, WE'VE BEEN THROUGH THE, THE THICK AND THE THIN, UM, WE'VE SEEN ALL THE PROBLEMS.
[01:30:01]
UM, AND, AND WE WORRY ABOUT THINGS THAT MAY HAVE BEEN A PROBLEM AT A CERTAIN POINT IN TIME BUT ARE NO LONGER A PROBLEM.AND I THINK AT THE END OF THE DAY, IF SOMEBODY REALLY WANTS TO GO DIG INTO WHAT WE AS AN EDC ARE DOING, OR EVEN AT A MORE GLOBAL SCALE, THE CITY, THEY HAVE, YOU KNOW, THE ABILITY TO GO, YOU KNOW, THROUGH AND DO, YOU KNOW, TOMA REQUESTS AND, YOU KNOW, GO INTO CLEAR GOV.
I MEAN ALL OF IT IS OUT THERE IN THE OPEN.
THE QUESTION IS WHAT FORMAT IS IT? AND IT'S MORE OF A, I VIEW IT MORE OF A A PREFERENTIAL ELEMENT AND THAT'S JUST WHERE WE NEED TO DEFER TO THE CITY AND SAY, LOOK, Y'ALL ARE RUNNING THIS ON A DAILY BASIS.
THEY'RE DOING ALL THE FINANCIALS FOR THE EDC.
SO WHY WOULD YOU SIT THERE AND TRY TO DICTATE HOW ABOVE WORK TO THEM? OH, I'M NOT, I'M JUST, I SEE IT ANYWAYS.
YEAH, SO WE'LL ASK, WE CAN ASK THAT OF THE CITY MANAGER WHEN, WHEN WE MEET ON FRIDAY TO REVIEW.
SO WE ACTUALLY HAD OUR FIRST BUDGET MEETINGS TODAY WITH THE CITY MANAGER AND HIS REQUEST WAS TO DO EXACTLY WHAT YOU HAVE REQUESTED AND TO BREAK IT OUT FOUR TIMES, 200 EQUALS 800.
SO ALL THE WAY AROUND THE CIRCLE.
RIGHT NOW MOST OF US ARE LOCKED OUT FOR EDITING RIGHT NOW, BUT THAT WILL BE UPDATED.
DO ANY OF YOU ALL HAVE OTHER QUESTIONS THAT WE HAVEN'T TOUCHED ON THAT WE NEED TO VISIT WHILE WE'VE GOT EVERYBODY HERE? AND IT RELATES TO THE BUDGET AND THE BUDGET ALONG, RIGHT, THE LAND SALES TO GETTING ADDED BACK IN FOR THE TWO PROJECTS THAT HASN'T BEEN ANSWERED.
THAT HAS TO, WELL AGAIN, JUST FROM A STAFF PERSPECTIVE, LET'S JUST BE CONSISTENT.
IT'S EITHER IN AND THE EXPENSES ARE IN OR THE EXPENSES ARE OUT AND THE LAND SALES ARE OUT.
YOU CAN, YOU CAN'T SORT OF HAVE IT BOTH WAYS, IN MY OPINION.
I AGREE A THOUSAND PERCENT PERSONALLY, IT'S NOT 100.
I MEAN, WE'VE HAD A LOT OF DEALS THAT LOOK LIKE THEY WERE RIGHT THERE AND IT DIDN'T HAPPEN.
AND, AND IT'S NOT 100 AND I, I'VE ALREADY ERRED WHAT I, WHAT MY OPINION IS ON IT AND I CAN'T, I SEE THAT.
I SEE YOUR POINT OF, WE'VE INCLUDED SOME EXPENDITURES THAT WON'T PAY OUT BECAUSE WE WON'T CLOSE THOSE DEALS.
UM, BUT I, THAT'S JUST MY OPINION.
IF WE LEAVE IT IN, IS IT GOING TO CAUSE US TO MAKE A DIFFERENT DECISION THAN WE OTHERWISE MIGHT LEAVE IN THE LAND SALES OR, OR INCLUDE THOSE BACK LEAVE IN THE LAND SALES, WHICH IS GOING TO, YOU KNOW, TIP THE BALANCE MORE IN OUR FAVOR, RIGHT? IS IT GOING TO, ARE WE, IS IT GOING TO LEAD US TO MAKE A DIFFERENT DECISION THAN WE WOULD OTHERWISE MAKE WITH THE LAND SALES OUT? WELL, MY POINT WAS, ANY DECISION YOU MAKE, YOU'RE GOING TO HAVE THE LAND SALES IN THERE BECAUSE THAT'S YOUR CASHFLOW STATEMENT.
OTHERWISE, YOU'RE NOT DOING ANYTHING FOR THE NEXT YEAR BECAUSE YOU'RE 2 MILLION IN THE HOLE.
SO, BUT I THINK THAT'S A, A, UH, COMING TO A CONCLUSION THAT ISN'T NECESSARILY REAL.
YOU KNOW, YOU, YOU KNOW, ON PAPER THE EDC IS, YOU KNOW, PROPOSED TO, YOU KNOW, SPEND 2 MILLION BEYOND THE REVENUES THAT IT RECEIVES.
HOWEVER, THERE'S MORE THAN $2 MILLION SITTING IN, YOU KNOW, TEXT POOL OR YOU KNOW, ANY NUMBER OF THINGS.
SO I THINK IT JUST FROM A, FROM A BUDGET STANDPOINT, IT LOOKS ONE WAY, BUT IN REAL LIFE IT IS DIFFERENT.
UM, BUT I MEAN, LIKE I SAID, I'VE, IT'S, IT'S ALL OR NOTHING.
YOU EITHER INCLUDE ALL OF IT OR YOU DON'T INCLUDE ANY OF IT AND ONE FIVE OF IT WAS THAT STUFF, RIGHT? SO I MEAN, AS DEALS FALL OFF, THOSE SHOULD FALL OFF OUR BUDGET, RIGHT? WELL YOU'D HAVE TO DO A BUDGET AMENDMENT.
SO TO TAKE OUT 500,000 THAT WE WERE GONNA PAY AN INCENTIVES CUZ A DEAL FELL OUT.
AND THAT'S WHY FINANCE WANTS TO HAVE 'EM BOTH THERE.
SO THAT AND SNEAKING UP, COME ON, SNEAK IN ON UP.
AND YOU KNOW, I GOTTA TELL YOU, I REALLY THINK Y'ALL ARE OVERTHINKING THIS
SO SEE I'VE BEEN DEAD SILENT THE WHOLE TIME.
WHOEVER PREPARED THIS GAVE THIS TO US A BUDGET THAT SHOWED NEGATIVE 2 MILLION AND DIDN'T PUT IT IN THERE.
BUT, AND, AND EVEN IF YOU PUT LAND SALE REVENUE IN, IT'S STILL GONNA SHOW NEGATIVE 2 MILLION.
AND THE REASON IS BECAUSE YOU HAVE THE LAND EXPENSE ASSOCIATED WITH THAT, THAT YOU'RE GONNA TAKE OFF YOUR BOOKS, RIGHT? AND SO YOU END UP, YOU STILL SHOW 2 MILLION, BUT WHAT YOU GAIN BY INCLUDING THE LAND SALE REVENUE IN HERE IS WHAT DOESN'T GET TRACKED.
DOESN'T GET DONE BECAUSE YOU FORGET THAT YOU THOUGHT YOU WERE GONNA HAVE A LAND SALE.
AND THEN THIS IS BUDGET, RIGHT? BUDGET'S LIKE PLAN MONOPOLY.
SO YOU PUT IT IN YOUR BUDGET AND YOU TRACK IT.
WELL, IF YOU DON'T SELL THE LAND, YOU HAVE A VARIANCE BECAUSE YOU DIDN'T ACHIEVE WHAT YOU THOUGHT YOU WERE GONNA DO, BUT YOU KNOW WHY YOU DIDN'T ACHIEVE IT BECAUSE
[01:35:01]
YOU KNOW SOMETHING HAPPENED, RIGHT? AND YOU DECIDED NOT TO SELL THE LAND, BUT AT LEAST YOU PUT IT IN YOUR PLAN BECAUSE YOU ANTICIPATED YOU WANTED TO GET IT DONE.SO IF I HAD TO PROVIDE SOME A SUGGESTION TO YOU AND ADVICE, MY ADVICE TO YOU IS TO INCLUDE THE LAND SALES AND YOUR, YOUR COUNCIL AGREES.
UH, I MEAN THE, YOU YOU HAVE TO REMEMBER THAT A BUDGET IS FICTIONAL.
AND SO IT'S NOT ACTUAL FUNDS BECAUSE SAY THAT YOU HAVE A, A EMPLOYEE THAT LEAVES AND YOU DON'T HAVE ANOTHER EMPLOYEE FOR SIX MONTHS, WELL NOW YOUR EMPLOYEE NUMBER IS GOING TO BE HALF OF WHAT IT WAS, RIGHT? AND EVERYTHING DOES THAT THROUGHOUT THE YEAR.
THAT'S WHY YOU HAVE TO DO BUDGET AMENT, UH, AMENDMENTS TO ALLOCATE FOR IT.
SO, UM, I WOULD CONCUR WITH THE, UM, CHIEF FINANCIAL OFFICER WITH REGARDS TO HOW IT SHOULD BE TREATED.
I, I THINK THE WAR WILL GIVE US SOME ADDITIONAL GUIDANCE AS THE YEAR GOES ON TO ANN'S POINT OF WORK IN THE PLAN IS WE'RE GONNA HAVE PLENTY OF THINGS TO LOOK AT.
NOW NONE OF THOSE ARE GUARANTEED UNTIL THEY CLOSE.
BUT IF WE'RE NOT ACCOUNTING FOR THE LAND SALE AND THEN WE'RE KIND OF WHISTLING PAST THE GRAVEYARD BECAUSE WE DON'T THINK WE HAVE TO WORRY ABOUT IT, THIS WILL GIVE US SOME CLARITY WITH WHAT WE CAN DO AS ALTERNATIVES IN THE EVENT THAT DEAL ONE FALLS APART AND WE'RE ON DEAL THREE.
UM, IT DOESN'T GUARANTEE THAT WE'LL HIT AN EXACT NUMBER IN THE BUDGET, BUT AS EVERYBODY ELSE HAS SAID, THERE'S A REASON WHY THERE'S TONS OF BUDGET VARIANCE EVERY YEAR IN JUST ABOUT EVERYTHING THAT WE DO.
SO TREASURER, LET'S SAY YOU, I'LL RESERVE MY COMMENTS UNTIL THE JOINT SESSION ON JULY 10TH.
WELL, YOU HAVE TO PROVIDE YOUR BUDGET BEFORE THEN.
YOU CAN'T WAIT FOR, YEAH, YOU CAN'T WAIT FOR THE, YOU HAVE TO GIVE THE BUDGET TO COUNCIL.
THE JOINT SESSION ON THE 10TH IS FOR INCENTIVE DISCUSSIONS, NOT THE BUDGET.
SO HERE'S MY ISSUE WITH ALL OF THIS.
IT, IT IS LIKE ON ONE HAND IT'S LIKE WE'RE DOING THESE THINGS OUTTA TRADITION AND IT'S ALMOST LIKE PAYING, IT'S LIKE PAYING 10% TO THE BIG GUY TYPE MENTALITY.
AND WE GET CAUGHT UP INTO THIS WHERE, WELL WE JUST DO IT OUT OF TRADITION.
AND THEN YOU LOOK AT SOMETHING WHERE IT SAYS $250,000 FOR MARKETING EXPENSES, BUT YET I STILL HAVEN'T SEEN NOTHING OF WHAT WE'VE DONE FOR ICS E ON SOCIAL MEDIA, ANYTHING LIKE THAT.
SO WE UNDERSTAND THAT THERE'S THIS INTERLINKING BETWEEN THE CITY AND WHAT WE DO, BUT AT THE SAME TIME WE'RE ALSO INDEPENDENT OF AND, BUT THEN WE GET INTERWOVEN WHEN IT'S CONVENIENT.
BUT THEN WHEN IT IS NOT CONVENIENT, WE, WE ARE OUT OF THE EQUATION CAUSE WE FALL ON A CERTAIN PRIORITY FOR THE CITY.
SO MY ISSUE IS IS THAT HOW DO WE LOOK AT THESE NUMBERS? THIS IS OUR FIRST YEAR AND THEN THOSE, THAT EXCEL SHEET THAT WAS BEING WORKED ON THE FIRST HALF OF THE YEAR, HOW MUCH OF THAT ALIGNS WITH WHAT I'M SEEING HERE? BUT ALSO WHEN WE'RE MAKING THESE AMENDMENTS, DO WE FULLY UNDERSTAND WHAT WE'RE AMENDING AND WHY? WHY ALSO BEING ABLE TO DO THIS IN REAL TIME WITH WHATEVER DEADLINE THAT CITY MANAGER HAS OR WHATEVER.
ALL OF THESE PARTIES THAT TALK, WERE NOT PRIVY TO THESE MEETINGS.
SO LIKE WHEN YOU ALL HAD A BUDGET MEETING, I THINK WHAT TODAY SHE SAID THIS WAS THE FIRST TIME THEY HAD ONE, BUT THEN THIS WEEK YOU ALSO ARE MEETING AGAIN.
SO CHAIR, VICE CHAIR, WHOEVER, IF WE'RE DISCUSSING EDC BUSINESS WITH THE CITY, IT NEEDS TO BE IN LOCKSTEP FROM TOP TO BOTTOM.
LIKE CERTAIN THINGS CAN'T BE DISCUSSED WITHOUT US BEING PRESENT.
BUT THEN BROUGHT BEFORE US SAYING, WELL THE CITY IS SAYING THIS.
IT'S LIKE, WELL WE DON'T HAVE, WE CAN'T DEFEND OURSELVES.
AND THEN IT'S JUST LIKE, OH, THIS IS WHAT WE'VE DONE IN TRADITIONS, SO WE'RE MAKING DECISIONS.
THEN HE'S A COUNCIL MEMBER AS WELL.
SO HIS VIEWPOINT IS SERVING ON TWO SIDES.
SO FROM A CITY STANDPOINT, WE SPENT 45 MINUTES TALKING ABOUT CITY BUSINESS.
ARE WE THE EDC OR ARE WE THE CITY? A DIVISION OF THE REGULAR CITY OF HUDDLE.
BUT THEN WE'RE TALKING ABOUT PUBLIC PERCEPTION AND ALL THESE THINGS.
SO I JUST WANNA MAKE SURE AS WE'RE BRINGING ON NEW SEATS AND ALL THESE THINGS THAT WE'RE MOVING IN SYNCHRONIZATION AND ACTUALLY FULLY UNDERSTANDING WHAT WE'RE DOING UP HERE.
CAUSE I'M NOT COMFORTABLE WITH SIGNING MY NAME ON NOTHING THAT I DON'T FULLY KNOW WHAT I'M DOING AND WHY I'M DOING IT.
AND ALSO MAKING SURE THAT WE'RE COMFORTABLE WITH SOMETHING THAT WE'RE DOING NOW AND TWO YEARS FROM NOW WE'RE LIKE, OH YEAH, WELL RANDALL DID SAY THIS OR SHAWN SAID THIS OR WHOEVER.
I'M JUST TRYING TO GET OUT OF THE, WE JUST DOING STUFF JUST FOR THE SAKE OF DOING IT.
[01:40:04]
SO THAT'S WHY I WAS SAYING THE JOINT SESSION ON THE 10TH PROVIDES BETTER CLARITY CUZ THEY'RE GONNA HAVE MORE QUESTIONS.SO WHATEVER WE SAY NOW, IT'S GONNA COME UP.
WE'RE GONNA TALK ABOUT IT AGAIN ON THE 10TH BECAUSE PEOPLE ARE, LIKE MATT SAID, OR LIKE HE SAID, PEOPLE ARE LOOKING AT STUFF FOR THE FIRST TIME.
SO THEN ON THE 10TH WHEN THESE CERTAIN QUESTIONS COME UP, THERE'S NOTHING THAT SAYS THAT COUNCILMAN CLARK WON'T HAVE QUESTIONS BECAUSE OF SOMETHING THAT CAME UP WHEN BOARD MEMBER CLARK THOUGHT OF AT THE EDC MEETING.
THAT'S, THAT'S ALL I'M SAYING.
SO IT'S HARD TO UNDERSTAND LIKE WHAT ARE, WHAT ARE WE VOTING ON WHEN THERE'S SO MANY QUESTIONS? WELL, WHAT WE ARE VOTING ON OR WHAT IS ON THE AGENDA IS FUND 35 AND FUND 35 ALONE.
FUND 10 IS PROVIDED AS A VISUAL AID OF HEY, HERE'S WHAT THE CITY'S DOING.
AND BASICALLY HERE'S THE MORE, UH, YOU KNOW, MACRO LEVEL, HEY, HERE'S EVERYTHING THAT'S GOING ON.
UM, REALLY WHEN YOU BOIL IT DOWN, IF YOU LOOK AT FUND 35, WHAT DO YOU HAVE IN HERE? YOU HAVE BOARD GOING TO ICSC, YOU HAVE A PROFESSIONAL SERVICES AGREEMENT AND YOU HAVE THREE 80 S AND SOME MEMBERSHIP DUES AND, AND THAT'S AND AND DEBT SERVICE.
SO IF THAT'S ESSENTIALLY IT, THEN WHY DID WE SPEND MORE TIME TALKING ABOUT 10 THAN 35? WE SPENT MORE TIME FOR THE PAST HOUR TALKING ABOUT FUND 10 THAN 35.
THAT'S SAYING IT'S YOUR JOB TO ANSWER IT, BUT I'M JUST SPEAKING OF YEAH, AND I THINK THIS IS PROBABLY A SCENARIO WHERE TOO MUCH DATA IS PROBABLY JUST AS HARMFUL AS NOT ENOUGH.
AND YOU KNOW, WE'RE, WE'RE OVER HERE LOOKING AT, I'LL CALL IT A SHINY OBJECT THAT IS REALLY NOT THE SHINY OBJECT THAT WE APPROVE OFF ON AT THE END OF THE DAY.
I MEAN, REALLY THE WAY THAT I SEE IT, ART, WHAT WE HAVE ON HERE IS PRETTY STINKING CUT AND DRY.
IT'S GOING TO THE TRADE SHOWS TRYING TO ATTRACT NEW BUSINESS AND ATTORNEYS YEAH.
ATTORNEYS, PSA AND DEBT SERVICE AND A COUPLE OTHER ODDS AND ENDS.
IT REALLY IS PRETTY BASIC WHEN YOU BOIL IT DOWN.
YEAH, I DON'T AGREE WITH THAT.
ONE, ONE OF THE REASONS WHY THERE'S BEEN THIS DISCUSSION OPENLY IS THAT THIS ALLOCATION BETWEEN FUND 10 AND FUND 35 IS NEW.
THEY HAVEN'T DONE IT THIS WAY BEFORE.
AND SO NOW THEY'RE, THEY'RE ALLOCATING THESE COSTS AND THEY HAVE THE ABILITY TO ACTUALLY SHOW THOSE WHICH THEY'VE NOT HAD IN THE PAST TO THE BOARDS, UH, TO DO SO.
AND SO WITH THIS, WITH THIS NEW ALLOCATION OF COSTS, THEY'RE TRYING TO RELATE TO THE BOARD WHAT ALLOCATIONS ARE BEING, ARE OBLIGATED BY THE CITY AND WHAT OBLIGATIONS ARE ARE BEING ENCUMBERED ENCUMBERING.
THE E D C, UM, THE, UH, THE TECHNICALLY 5 0 1 0 7 3 A DOES NOT INCLUDE THE LANGUAGE OF YOUR BUDGET.
IT JUST SAYS ALL EXPENDITURES HAVE TO BE APPROVED BY LAW.
SO WHEN THE BOARD APPROVES THEIR BUDGET, THAT'S, THIS WOULD BE YOUR APPROVED BUDGET, IT HAS TO GO TO THE CITY COUNCIL AND THEN THE CITY COUNCIL HAS TO CONSENT TO AGREE TO THAT BUDGET, OTHERWISE IT CAN MAKE LINE ITEM VETOES, IT CAN MODIFY ALLOCATIONS AND THEN APPROVE THE BUDGET AS THEY HAVE DONE.
AND THEN WE WOULD BE RESTRICTED BY THEIR APPROVAL OF THOSE FUNDS TO, TO WHAT WE CAN SPEND.
AND SO IT IS COMPLICATED AND IT'S VERY, YOU KNOW, HAVING BEEN NEW TO THE BOARD, YOU KNOW, THIS YEAR IT IS ABSOLUTELY CONFUSING, UH, BECAUSE IT'S, IT SEEMS REDUNDANT, BUT AS AN INSTRUMENTALITY OF THE CITY, THE, THE, THE POLICY, THE LEGAL POLICY IS CI UH, YOU KNOW, THE PUBLIC POLICY IS, IS THAT THERE ARE IS ONLY ONE GROUP OF PEOPLE THAT MAKE THE AB THE, THE, UH, DECISIONS TO SPEND TAX DOLLARS AND THAT'S ULTIMATELY THE PEOPLE THAT GET ELECTED.
CUZ THEN WITHOUT THAT, NO ONE HERE IS ELECTED EX BUT FOR COUNCIL MEMBER.
UM, AND SO IF YOU HAD THE SOLE AUTHORITY TO ALLOCATE THESE FUNDS, YOU WOULD HAVE TAXATION WITHOUT REPRESENTATION.
AND WE KNOW ALL WHAT HAPPENED RIGHT.
SO, SO WHAT THEY'VE DONE IS THEY'VE CREATED A VERY COMPLICATED PROCESS FOR THIS BOARD TO HAVE SOME AUTONOMY AS A NONPROFIT ECONOMIC DEVELOPMENT BOARD AND YET MAINTAIN THE ULTIMATE ELECTED, UH, ELECTED, UH, BODY AUTHORITY WITH REGARDS TO THE ULTIMATE SPENDING OF, OF TAX DOLLARS.
AND SO IF THAT HELPS, I, I'M, I'M, I'M OFFERING THAT TO HELP GIVE YOU SOME GROUND BECAUSE IT IS I ABSOLUTELY
[01:45:01]
AGREE WITH YOU THAT IT, IT TOOK ME YEARS TO, TO FINALLY RECONCILE HOW THIS PROCESS WORKS.WELL NO, MY ISSUE IS THAT I UNDERSTAND WHAT YOU'RE SAYING.
MY ISSUE IS THIS IS THE FIRST YEAR THAT EVERYBODY HAS DONE THIS, RIGHT? RIGHT.
SO THE FACT THAT WE ARE BEING PRESENTED WITH SOMETHING THAT'S NEW TO US, BUT IT'S ALSO NEW TO THE CITY WHO'S PRESENTING IT TO US.
SO EVERYBODY SHOULD BE HERE HANDS ON DECK.
LIKE WHETHER IT'S CITY MANAGER, WHOEVER, NOT SAYING YOU ALL NOT YOU ALL COUNT.
NOT SAYING THAT, BUT I'M JUST SAYING THAT THERE'S TOO MUCH, THERE'S TOO MANY QUESTIONS FOR SOMETHING.
THIS IS THE FIRST YEAR GO AROUND FOR IT.
SO WHY, WHY DO WE HAVE TO VOTE ON SOMETHING RIGHT NOW FOR SOMETHING THAT'S STILL, I MEAN WE CAN, I'M JUST SAYING WHY, I MEAN YOU'RE THE CHAIR, SO LIKE WHY, OH, YOU'RE THE CHAIR.
IF I UNDERSTAND IS IF THE BOARD DID JUST AS A POINT OF LAW, LIKE FOR EXAMPLE, IF, IF COUNCIL REFUSED TO TAKE ACTION ON THE BUDGET THAT GETS PRESENTED BY THE CITY MANAGER, THAT BECOMES THE BUDGET.
IT'S, THERE'S LEGAL THINGS THAT HAPPEN THAT WAY.
SO I, I DON'T KNOW WHAT HAPPENS IF LIKE THIS BOARD DIDN'T PRESENT THEIR BUDGET TO THE, THE CITY.
THAT'S WHY I, YEAH, SO, SO IF, IF FOR WHATEVER REASON A BUDGET THAT'S APPROVED HERE WAS NOT ALSO CONSENTED TO IN WHAT SOME FORM BY THE ECONOMIC, UH, BY THE CITY COUNCIL, THEN THERE WOULD BE A FAILURE OF APPROPRIATION LIKE YOU'VE SEEN IN THE FEDERAL GOVERNMENT WHERE YOU WOULD HAVE, UH, AN OBLIGATION TO CREATE THOSE OR YOU WOULD BE BREACHING YOUR ECONOMIC DEVELOPMENT AGREEMENTS.
YOU'D BE, YOU'D, YOU WOULD BE IN IN THOSE KIND OF SITUATIONS.
UM, UNTIL SUCH TIME YOU DID THAT ACTUALLY FOR THE CITY COUNCIL, IT'S A LITTLE DIFFERENT.
IF THE CITY COUNCIL NEVER ADOPTS A BUDGET FOR THIS YEAR, THE LAST YEAR'S BUDGET IS AUTOMATICALLY ADOPTED BY LAW BECAUSE IT WAS ALREADY DONE OR IT WAS ALREADY APPROVED.
AND, AND, AND YOU HAVE TO DO THAT BECAUSE I, I QUIT A CITY ATTORNEY FOR A CITY THAT WOULDN'T ADOPT A BUDGET
SO, UM, BECAUSE THEY FOUGHT TOO MUCH.
THE, SO, SO THAT'S, THAT'S THE ANSWER TO YOUR QUESTION.
IF, IF THAT HELPS MAKE A DECISION AND, AND TO MR. COLEMAN'S QUESTION, UH, UH OR ARE YOU KIDDING NOW? TREASURE, TREASURE TREASURER? YEAH.
UM, TREASURER COLEMAN, THE, UM, THE CITY GENERALLY EACH YEAR WILL CREATE A BUDGET SCHEDULE BECAUSE THERE ARE CERTAIN DEADLINES ASSOCIATED WITH THE ADOPTION OF THE CITY'S BUDGET PROVIDED BY THE TAX CODE.
AND SO IN ORDER TO GET ALL THE MATERIALS AND GET THIS TRAIN STARTING THE MOMENTUM, THEY START CREATING THESE DEBT DEADLINES.
THEY USUALLY START IN MARCH OR APRIL MM-HMM.
IS IT SEPTEMBER 19TH OR SOMEWHERE? SOMEWHERE AT THE VERY END OF SEPTEMBER.
SO THAT'S WHAT I WANTED TO SAY IS THAT WE ARE NOW AT, UH, UH, JUNE 26TH AND SO, UM, THE BUDGET HAS TO BE ADOPTED AND, AND IT HAS TO BE PREVENT PRESENTED TO THE SECRETARY.
IT HAS TO BE AVAILABLE TO THE PUBLIC FOR SO MANY WEEKS.
THEN THE CITY COUNCIL THEN HAS TO ADOPT IT TWICE.
UH, AND SO THERE'S, THERE'S AT TWO SEPARATE MEETINGS, THAT'S TWO WEEKS.
SO JUNE 26TH AND, UM, I HAVE UNTIL JULY 22ND TO FORMULATE THE BUD BOOK AND IT WILL BE PRESENTED TO COUNCIL IN A DRAFT FORMAT ON JULY 22ND.
SO AS LONG AS YOU GET ME SOME KIND OF NUMBERS BEFORE JULY 22ND, IT WILL GO INTO THAT DRAFT BOOK AND THEN THE CITY MANAGER WILL ACTUALLY PRESENT A PROPOSED BUDGET TO COUNCIL ON AUGUST THE FIRST.
AND THE REASON WHY IT'S AUGUST THE FIRST IS BECAUSE OF WHAT, UH, YOUR ATTORNEY JUST TOLD YOU IS THAT IT HAS TO BE PRESENTED, UM, WITHIN A CERTAIN TIMEFRAME FOR POSTING FOR PUBLIC HEARINGS AND THEN FINAL ADOPTION ON SEPTEMBER 21ST.
SO EVEN IF YOU GIVE A DRAFT BUDGET TO ME, THAT DRAFT BUDGET WILL BE INCLUDED IN THE BOOK ON JULY 22ND.
AND THEN IF YOU GIVE ME ANOTHER DRAFT THAT WILL BE INCLUDED IN THE BOOK ON AUGUST THE FIRST, ALTHOUGH I WOULD REALLY LIKE TO HAVE YOUR APPROVED BUDGET FOR THE BOOK ON AUGUST THE FIRST.
SO THAT'S WHY I SAY YOU DO NOT HAVE TO APPROVE A BUDGET TONIGHT.
BUT IF YOU COULD APPROVE A BUDGET PRIOR TO JULY 22ND, THAT WOULD BE VERY HELPFUL.
[01:50:01]
AND IN TERMS OF THIS BEING NEW THIS YEAR, THE ONLY THING THAT IS NEW IS THE TOOL THAT WE'RE USING, WHICH IS CLEAR GOV, WHICH IS A TRANSPARENT DOCUMENT THAT'S INTERACTIVE THAT PEOPLE CAN ENTER INTO AT THE SAME TIME.BUT THE BUDGET PROCESS HAS BEEN HERE AT THE CITY FOR A VERY LONG TIME, PROBABLY SINCE 1911 WHEN IT WAS INCORPORATED.
THERE'S BEEN A BUDGET EVERY SINGLE YEAR AND THE PROCESS IS BASICALLY THE SAME EXCEPT LAST YEAR THEY USED EXCEL WORKBOOKS LIKE SPREADSHEETS AND THIS YEAR WE'RE USING CLEAR GOV.
SO IT'S ONLY THE TOOL THAT'S CHANGED.
THE PROCESS IS STILL THE SAME.
UH, TREASURER COLEMAN, I I DID WANNA ALSO MENTION BECAUSE WE'RE HAVING OUR FIRST WORKSHOP ON FRIDAY, UM, WITH FINANCE AND WITH THE CITY MANAGER.
I MEAN I, I'M ASSUMING THAT'S SUPPOSED TO JUST BE STAFFED TO STAFF, BUT I'M CERTAINLY WILLING TO YEAH, ANYBODY CAN HAVE YOU GUYS COME IN IF YOU WANNA SIT DOWN ON THAT PRESENTATION, CUZ THAT MAY BE THE BEST TIME TO ASK SOME OF THE QUESTIONS THAT I THINK THAT ARE CONCERNING YOU.
UM, AND I CAN'T REMEMBER, DO YOU REMEMBER WHAT TIME OF THE DAY THAT IS? IT'S IN 11 TO 12 ON FRIDAY.
AND WHEN CHENEY SAID THAT WE'RE HAVING, UH, MEETINGS THIS WEEK IN THE BUDGET CALENDAR THAT IS AVAILABLE ON THE CITY WEBSITE THAT WE HAVE DISTRIBUTED AS WIDELY AS WE CAN DISTRIBUTE.
IT SAYS THAT THIS WEEK THAT EACH DEPARTMENT HEAD WILL MEET WITH THE CITY MANAGER TO DISCUSS THEIR BUDGET.
AND SO WHAT'S GOING TO HAPPEN ON FRIDAY, THE BUDGET THAT'S GOING TO BE DISCUSSED IS THE BUDGET THAT'S FUND 10, WHICH IS THE CITY PORTION OF THE BUDGET.
YOU ARE MORE THAN WELCOME TO ATTEND.
HOWEVER, THAT IS NOT THE BUDGET THAT YOU ARE ASKED BEING ASKED TO VOTE ON.
UM, CHAIRMAN, UM, UH, CARLSON IS CORRECT THAT YOU'RE ONLY BEING ASKED TO VOTE ON FUND 35, WHICH IS THE EDC BUDGET.
SO, UH, JUST TO KIND OF PUT THE, THE CALENDAR AND TO THE EQUATION FOR EVERYONE, SO OBVIOUSLY WE KNOW WHAT TODAY IS.
WELL OUR NEXT MEETING ON THE 10TH IS STRICTLY, UM, YOU KNOW, INCENTIVES AND YOU KNOW, BASICALLY THE VISION OF THE EDC, UM, AND PARTNERSHIP WITH COUNCIL AND REALLY TRYING TO DRIVE THAT HOME.
AND THAT'S A CONJUNCTION WITH, UH, CITY MANAGER, MAYOR SNYDER, MYSELF, AS WELL AS BOB.
UH, WE'VE ALL MET ABOUT THAT AND THAT'S WHAT, YOU KNOW, WE HAVE CHOSEN TO DO THERE.
WELL THE NEXT MEETING REGULARLY SCHEDULED IS JULY 24TH, WHICH IS AFTER THE 22ND WHEN ANN NEEDS A DOCUMENT OF SOME WAY, SHAPE, OR FORM.
UM, THEN AFTER THAT WE'RE TALKING ABOUT AUGUST 7TH, WHICH IS TOO LATE AT THAT POINT.
SO ANN, IT'S CORRECT, YES, WE HAVE TIME.
HOWEVER, IT'S GOING TO REQUIRE A SPECIAL CALLED MEETING IF WE DON'T APPROVE IT.
AND I'M NOT TRYING TO HOLD A, THE PROVERBIAL GUN TO ANYONE'S HEAD AND SAY WE HAVE TO DO SOMETHING TODAY.
BUT REALLY AND TRULY WHAT WE'RE TALKING JUST ABOUT FUND 35, TO ME THAT'S PRETTY STINKING CUT AND DRY.
AND LIKE I'VE ALREADY SAID, I THINK CHEYNEY DID A GREAT JOB ON THIS.
ARE THERE AREAS WHERE YOU MIGHT, YOU KNOW, WHERE ANY ONE OF US CAN SIT HERE AND PICK THINGS APART? SURE.
HOWEVER, I RUN A COMPANY THAT HAS OVER 10 SI OR 10 TIMES THE, UH, REVENUE AND HONESTLY EXPENSES OF THE EDC AND IN A MORE FACETS THAN ONE.
AND I CAN'T TELL YOU HOW MANY TIMES I'VE GONE BACK IN AND CHANGED A BUDGET.
IT IS ALMOST DAILY, IF NOT, OR WEEKLY, IF NOT DAILY.
SO, YOU KNOW, IT'S, IT'S A PART OF BUSINESS.
UM, TO ANN'S POINT, IT IS UNFORTUNATELY MONOPOLY MONEY AND WHAT WE SEE TODAY IS NOT WHAT IT WILL END UP, YOU KNOW, A YEAR FROM NOW.
SO, WELL HOPEFULLY WE PREDICTED SOMEWHAT CLOSE, BUT, SO I'D LIKE TO, IF I CAN I MAKE A MOTION, I WOULD LIKE TO MAKE A MOTION TO APPROVE THE BUDGET WITH THE FOLLOWING THREE, UH, TWO CHANGES.
KOCH FEST TO BE LINED OUT TO ZERO.
THE PROFESSIONAL SERVICES AGREEMENT TO COME IN AT $12 AND THE, UH, LAND REVENUE TO BE ADDED FOR THE TWO LAND SALES PER PER THE CASH FLOWS, PER THE CASH FLOWS.
[01:55:03]
SECOND.ALL RIGHT, WE HAVE A MOTION BY BOARD MEMBER CLARK, SECONDED BY BOARD MEMBER MINTON CONSISTING OF APPROVING THE BUDGET AS PRESENTED WITH THE THREE EDITS OF REMOVING KOCH FEST, THE PROFESSIONAL SERVICES AGREEMENT AT $12, AND, UH, ADDING THE LAND REVENUE PER CASH FLOWS AS PREVIOUSLY PRESENTED DISCUSSION AND OPEN IT FOR DISCUSSION.
ARE YOU, IS THERE ANY WAY OF ZEROING OUT OR LINE OR ZEROING OUT THE, THE TWO MEANING THAT WE'RE GIVING AWAY 500,001 PROJECT FOR THE EXPENSE, CAN'T WE ADD JUST 500,000 IN REVENUE FOR JUST TO OFFSET THAT TO WHERE IT WOULD STILL BE ZERO? THAT'D BE A, INSTEAD OF SAYING, HEY, WE'RE GONNA SELL LAND LAND'S, 11 MILLION HERE AND 2 MILLION HERE, BUT THAT'S A FIDUCIARY THAT YOU'RE NOW DEFRAUDING THE CITIZENS, RIGHT? BECAUSE IT WON'T EVER BE THAT MONEY IF THE LAND SALES, YOU'RE GONNA HAVE THAT REVENUE AND YOU'RE GONNA HAVE THAT EXPENSE, BUT WOULDN'T THAT REQUIRE AMENDMENT.
CAN WE JUST DO AN AMENDMENT ON THAT? IT MAKES OUR BOOKS LOOK CLEANER, IN MY OPINION.
BUT I, I THINK, I THINK THAT WE ARE, WE ALL COME FROM DIFFERENT INDUSTRIES AND, YOU KNOW, ALL OF OUR VARIOUS, YOU KNOW, PROFESSIONAL BACKGROUNDS HAVE DIFFERENT LEVELS OF, OF DETAIL THAT ARE REQUIRED.
UM, AGAIN, I'LL MAKE THE STATEMENT THAT WE DO NOT MANAGE THE DAY-TO-DAY FINANCES OF THE EDC, NOR IN ALL HONESTY WILL WE EVER, UM, SO IF FINANCE SAYS, HEY, THAT SHOULD BE THERE, THEN WE NEED TO ENTRUST THAT THEY ARE MAKING THE RIGHT DECISION AND DO THAT.
IF WE DO NOT, AND THIS IS KIND OF GOING OFF THE DEEP END, BUT IF WE CAN'T TRUST THEM TO SAY THAT, THEN WHY ARE WE HAVING HA OR WHY ARE WE TRUSTING THEM TO HANDLE OUR FINANCES AS AN ORGANIZATION? AND I KNOW THAT'S THE EXTREME, BUT IT'S THE TRUTH.
SO I, I HAVE ALWAYS TRIED TO RUN, YOU KNOW, ANY SORT OF BUSINESS WITH THE, THE SIMPLE MINDSET OF TRUST BUT VERIFY.
BUT YOU'VE GOTTA LET EVERYBODY DO THEIR PART.
AND IF THEY PROVIDE FEEDBACK, YOU TAKE THAT FEEDBACK AND YOU LET 'EM DO IT.
ANY FURTHER DISCUSSION? I WOULD ASK ONE THING, UM, ONLY BECAUSE YOU'VE GOT, MAN, THIS INTERFACE IS NOT GREAT, SUCKS,
CAN WE ADD THAT AS A TOP LINE ITEM RATHER THAN BURIED UNDER OTHER EXPENSES? SO ALL OF THESE CATEGORIES WERE PULLED STRAIGHT OVER FROM HOW LINE ITEMS APPEAR ON OUR BUDGET.
NOW, I DON'T KNOW IF THERE'S ANY YES, I THINK IT'S JUST YES, WE CAN DO THAT.
WE, WE JUST, WERE AT THE END OF THE DAY, WHAT WE'RE APPROVING IS THE DOLLARS.
NO, I UNDERSTAND THAT ORDER, THE UNDERSTAND THAT, BUT CAN CHANGE, YOU CAN BREAK THAT OUT INTO A SEPARATE OBJECT BY ITSELF SO THAT IT'S A STANDALONE.
I KNOW, BUT THAT'S A BIG THING.
A BIG PART OF WHAT WE DO AS AN EDC IS PAID COMPANIES TO BE HERE.
SO MY LONG-TERM ASK OF, OF THE FINANCE DEPARTMENT WHEN THE TIME COMES, IS ALIGNING OUR BUDGET TO MIRROR THE WAY THAT THE COMPTROLLER'S OFFICE REQUIRES THAT TO BE REPORTED ANNUALLY.
JUST THAT WAY IT'S IN THE RIGHT BUCKETS.
SO IT'S VERY SIMPLE FOR CHRISTINA OR ANN OR ANYBODY TO JUST GO IN THERE AND GO, HERE'S THE SUMMARY LINES FOR THIS.
THE ADC SPENT THIS, THIS, THIS, THIS, THIS.
IT'S A UNDER A FIVE MINUTE COMPLIANCE MATTER.
YOU'RE NOT HAVING TO SIT THERE AND GO, WELL THIS BUCKET IS THIS AND THIS IS THIS BECAUSE IT BECOMES CONVOLUTED AND THAT'S HOW YOU START ENDING OR YOU END UP WITH REPORTING ERRORS AND THAT'S A WHOLE NOTHER CAN OF WORMS. SO, BUT THAT'S SOMETHING THAT WE CAN TALK ABOUT ON A DIFFERENT DAY BECAUSE IT HAS NO IMPACT TO THE DOLLARS.
AND THE BUCKETS ARE STILL THERE.
WE'RE JUST TALKING ABOUT THAT'S FINE.
WHAT BUCKETS GO WHERE, CHENEY, WERE YOU GONNA ZERO OUT LIKE THE ZOOM AND THE OTHER SOFTWARE, THE 20 GRAND? UH, CORRECT.
SO, UM, THOSE PROPOSED CHANGES WERE FOR COSTAR AND ZOOM PROSPECTOR TO BE CANCELED OUT.
HOWEVER, UM, I DID MAKE A REQUEST OF THE BOARD TO POSSIBLY INCREASE MARKETING SERVICES CAUSE I KNOW WE CAN INCREASE THAT PROMOTIONAL, UM, CONTENT, POSSIBLY BUY THAT MUCH.
SO I WOULD JUST OFFSET THOSE, UH, EXPENSES.
SO THE DOLLAR AMOUNT WOULD REMAIN THE SAME, BUT THE ACTUAL BUCKETS WOULD BE DIFFERENT, WOULD BE A LITTLE BIT DIFFERENT SO THAT IT'S REFLECTIVE OF WHERE WE MIGHT ACTUALLY SPEND THOSE MONIES.
YOU WANNA MAKE THAT AS A FRIENDLY AMENDMENT? SURE.
SO THE AMENDMENT BY VICE CHAIR LUCAS, SECONDED BY BOARD MEMBER CLARK, WAS TO REMOVE BOTH ZOOM PROSPECT OR ZERO THAT OUT AS WELL AS COSTAR
[02:00:01]
PER STAFF AND REALLOCATE THOSE FUNDS TO MARKETING SERVICES AS A WHOLE.I, IF IT WAS, IF THAT'S A FRIENDLY AMENDMENT, THEN YOU'LL NEED THE SECOND TO ALSO ACCEPT THE FRIENDLY AMENDMENT.
AND I THOUGHT YOU WERE THE SECOND.
ANY FURTHER DISCUSSION, COMMENTS? HEARING NONE.
WE'LL GIVE CHANEY 30 SECONDS TO RETURN TO HER TO FINISH ALL MY WRITING A WHOLE 30 SECONDS WITH YOU.
NOW BACK TO OUR REGULAR SCHEDULED PROGRAMMING, IF YOU WILL.
UH, ITEM EIGHT ONE, DISCUSS AND CONSIDER ACTION REGARDING THE CURRENT AND PROPOSED SERVICES AGREEMENT BETWEEN THE CORPORATION AND THE CITY OF HUTTO.
SO WE KIND OF JUST HAD A PART OF THIS AND EIGHT TWO, SO YOU TAKE ACTION ON THAT.
WE DO HAVE TO TAKE ACTION ON IT.
THE AGREEMENT WAS PROVIDED VIA EMAIL ALREADY.
ALL WE WOULD NEED TO DO WOULD BE TO MODIFY THE AMOUNT THAT IS LISTED ON THE DOCUMENT TO MATCH THE BUDGET.
I'LL MAKE THAT MOTION TO APPROVE IT PENDING THE OR WITH THOSE CHANGES.
DO WE NEED TO HAVE TO MAKE IT TO BE WHAT COUNSEL ADOPTS SO THAT WE DON'T HAVE TO COME BACK? OR WE ALL HAVE TO JUST COME BACK NO MATTER WHAT.
YOU NEED TO COME BACK NO MATTER WHAT.
WE HAVE A MOTION BY VICE CHAIR LUCAS, SECONDED BY BOARD MEMBER CLARK.
HOLD ON, I GOTTA STATE THE MOTION.
UM, IT WOULD BE TO, UH, A MOTION TO APPROVE THE, UH, PROFESSIONAL, OR EXCUSE ME, UH, PROFESSIONAL SERVICE AGREEMENT BETWEEN THE CORPORATION AND THE CITY AT THE AMOUNT OF $12 PER YEAR DISCUSSION.
YOU'RE HERE FOR DISCUSSION? YEP.
YOU SAW, YOU HEARD AT $12 I MILLION MOVE PAST BUDGETARY ITEMS. WE'RE MOVING ON.
WE, WE GOT A LITTLE OUTTA ORDER BECAUSE EIGHT ONE AND EIGHT TWO REALLY DO GO VERY MUCH HAND IN HAND.
HOWEVER, THEY'VE GOTTA BE SEPARATE JUST BECAUSE YEAH, THERE'S NO, I UNDERSTAND THERE'S A DOCUMENT INVOLVED.
UM, ANY FURTHER DISCUSSION? I THINK $12 IS A GREAT IDEA.
CHAIR CARLSON A MOTION PASSES FOUR ONE ITEM EIGHT THREE.
DISCUSS AND CONSIDER ACTION TO APPROVE RESOLUTION R 20 23 1 35 APPROVING THE FIRST AMENDMENT TO THE FUNDING AND REFUNDING AGREEMENT IN THE AMOUNT OF 12 MILLION BY AND BETWEEN THE CITY OF HUTTO AND THE CORPORATION TO CONSTRUCT THE MEGASITE EAST WEST FINE ROAD PROJECT TO PROMOTE NEW OR EXPANDED BUSINESS DEVELOPMENT WITHIN THE CITY, AUTHORIZING THE CHAIRPERSON TO EXECUTE THE AGREEMENT AND PROVIDING AN EFFECTIVE DATE CHAIR.
UH, FOR PURPOSES OF THIS ITEM, AFTER UH, FURTHER, UH, CONFERRING WITH THE, UH, UH, FINANCE DEPARTMENT, UH, WE HAVE BEEN RECOMMENDED TO MODIFY THE RESOLUTION, UH, IN THIS MANNER IS TO, UH, PROVE THE FIRST AMENDMENT TO THE FUNDING AND REFUNDING AGREEMENT IN A CURRENTLY ANTICIPATED AMOUNT OF 18 MILLION BY AND BETWEEN THE CITY AND THE CORPORATION TO CONSTRUCT THE MEGASITE EAST WEST SPINE ROAD.
UH, THAT 18, THAT THAT INCREASE HAS TO DO WITH THE PROJECT BEING EXPANDED TO INCLUDE WATER AND WASTEWATER LINES, WHICH WERE NOT PREVIOUSLY IN THE, THE AMOUNT, UH, SHOWN.
AND SO WITH THE WATER AND WASTEWATER EXPANSION TO THE AGREEMENT, WE NEEDED TO MODIFY THE, UH, ANTICIPATED AMOUNT TO 18 MILLION.
AND THAT WOULD BE WHAT IS CURRENTLY PRESENTED FOR THE, UM, CONSIDERATION AND POSSIBLE APPROVAL BY THE BOARD.
DO YOU WANT ME TO GO? WELL, JUST ONE PIECE OF CLARIFICATION FOR THE BOARD MEMBERS, THERE ARE OTHER FUNDS AVAILABLE FROM WATER AND WASTEWATER FUNDS AND ADDITIONAL DOLLARS THAT ARE AVAILABLE TO FUND THIS.
SO IT'S NOT, YOU'RE NOT AUTHORIZING IT.
WE GO BACK OUT TO MARKET AND ISSUE ADDITIONAL BONDS OR ADDITIONAL ACTIVITIES.
WE'RE JUST TRYING TO GET THE TOP LINE ITEM TO CORRESPOND TO WHAT WE BELIEVE THE ACTUAL COST OF THE FULL PROJECT IS
[02:05:01]
WITH WATER WASTEWATER, DRAINAGE, ET CETERA.BUT YOUR OB YOUR ONLY OBLIGATION UNDER THE EXISTING FUNDING AND REFUNDING AGREEMENT IS TO PAY THE DEBT SERVICE ON THE EXISTING 8 MILLION.
THERE IS NO OTHER OBLIGATIONS, OR I MEAN, 12 MILLION, THERE IS NO OBLIGATIONS TO, IN ADDITION TO THAT 12 MI MILLION DOLLAR, UM, UH, YEARLY, I DUNNO IF THAT SEMI, SEMI-ANNUALLY, BUT, BUT YOUR ANNUAL DEBT SERVICE THAT IS REQUIRED FOR PURPOSES OF THAT 12 MILLION, UM, UH, BOND THAT WAS, THAT WAS PASSED.
AND YOU DID PUT THAT IN THE BUDGET WE JUST APPROVED, CORRECT? YES.
ALL THE DEBT SERVICE IS IN THERE.
SO JUST FOR CLARIFICATION FOR OUR NEWER MEMBERS, UM, ORIGINALLY THE AGREEMENT KIND OF STRAPPED THE BOARD TO JUST THE 12 MILLION AS FAR AS ACCESSIBLE FUNDS BECAUSE THE BOARD IS NOT REQUIRED TO ADHERE TO SUCH STRINGENT POLICIES REGARDING PROCUREMENT AND, UH, CONSTRUCTION.
THE IDEA WAS THAT THE BOARD WOULD RUN POINT ON THE CONSTRUCTION, AND SO WE WOULD BE EXPENDING FUNDS THAT WOULD EXCEED THIS 12 MILLION WITH THE ADDITION OF THOSE UTILITIES IN THE ROAD.
SO REALLY WHAT WE'RE ASKING IS THAT YOU JUST ALLOW FOR THOSE EXTRA FUNDS TO BE EXPENDED AND, AND REIMBURSED FROM THE CITY.
SO IT'S JUST KINDA ALLOWING THOSE ADDITIONAL EXPENSES TO BE INCLUDED RATHER THAN KEEP CAPPING IT AT THE 12 MILLION, WHICH WE, WE KNOW
SO YOU'RE AVOIDING HAVING TO MAKE A, A CHA UH, A SECOND AMENDMENT TO THE AGREEMENT AT SUCH TIME THAT YOU NEEDED ADDITIONAL FUNDS, UH, WHICH ARE CURRENTLY, UH, ALLOCATED OUT OF THE WATER ENTERPRISE FUND AND THE WASTEWATER ENTERPRISE FUND AND C I P OUT OF THE CITY.
SO THOSE, THOSE FUNDS ARE, ARE, UH, RESTRICTED FUNDS OF THE CITY THAT CAN ONLY BE SPENT ON THESE KIND OF IMPROVEMENTS.
UH, AND SO THAT'S WHY THOSE ALLOCATIONS ARE, ARE NOW BEING, UM, FUNDED BY THIS, BY THE CITY IN ORDER TO COMPLETE THE WATER AND WASTEWATER, UH, IMPROVEMENTS BECAUSE THOSE WILL ULTIMATELY BE CITY OWNED, UH, ONCE THEY ARE, UH, PUT IN PLACE AND THEN, UM, UH, DEDICATED TO THE CITY.
SO, AND JUST TO MAKE THIS, I'LL TAKE THIS EASY FOR OR, OR AS EASY AS POSSIBLE FOR EVERYBODY.
THIS IS ALL GRANT FUNDS FROM THE CITY THROUGH THE ROAD BONDS, IF I'M RECALLING CORRECTLY ON THE ENTERPRISE DOLLARS AND THAT TOO.
AND, BUT THERE'S NO REPAYMENT FROM THE EDC TO MY UNDERSTANDING FOR THE WATER WASTE WASTEWATER.
WE'RE STILL OBLIGATED TO PAY THE DEBT SERVICE ON THE 12 MILLION BOND THAT WE ISSUED THAT THE EDC WOULD'VE DONE, BUT WE GOT A BETTER INTEREST RATE THROUGH THE CITY.
SO THE CITY ISSUED THE DEBT ON BEHALF OF THE EDC.
BUT YOU'RE JUST PICKING UP THE DEBT ON IT CHAIR.
WE TABLE THIS UNTIL AFTER EXECUTIVE SESSION.
THERE'S NOTHING TO DISCUSS IN EXECUTIVE.
IF IT'S NOT LISTED IN EXEC, THEN IT'S PART OF THE MEGA CENTER.
YEAH, THE, THIS WOULDN'T BE INCLUDED IN THE MEGASITE PROJECT ON THE FIFTH LINE OF THE EXECUTIVE SESSION.
SHOULD THE BOARD NEED TO, UH, SEEK LEGAL ADVICE OR OKAY.
DISCUSS IT UNDER ECONOMIC DEVELOPMENT.
ALL RIGHT, WELL WE HAVE A MOTION OUT THERE.
ANYBODY'S WILLING TO SECOND IT? HEARING NONE, I'M GONNA SAY THAT MOTION HAS DIED.
CHAIR, I'D LIKE TO MAKE A MOTION TO APPROVE THE RESOLUTION.
R 2023 DASH 1 35 AS PRESENTED.
JUST FOR THE RECORD, UM, WHEN YOU SAY AS PRESENTED, THAT INCLUDES THE MODIFICATIONS CORRECT.
AND ALL RIGHT, WE HAVE A MOTION.
WE HAVE A MOTION BY BOARD MEMBER CLARK, SECONDED BY VICE CHAIR LUCAS TO APPROVE EIGHT THREE AS PRESENTED.
PRESENTED WITH THE CHANGES PRO PROVIDED BY COUNSEL.
[02:10:01]
SLAM IT NOW.I TRIED TO MOVE IT CLOSER AND CLOSER TO BE NICE.
YEAH, I'LL BRING UP A BIGGER GAVEL NEXT WEEK.
ITEM EIGHT FOUR, DISCUSS AND CONSIDER ACTION TO DIRECT STAFF AND BOARD SECRETARY REGARDING THE FILING AND RETENTION OF ITEMS OBTAINED FROM THE CORPORATION SAFE DEPOSIT BOX AT CADENCE BANK.
SO I KNOW AARON IS NOT HERE, HOWEVER, IT'S BEEN ABOUT TWO MONTHS SINCE THOSE CONTENTS WERE RETRIEVED FROM THE SAFE DEPOSIT BOX.
AND WE JUST WANT TO ENSURE THAT WE ARE SECURING ANY DOCUMENTS PER, UM, RETENTION POLICY AND LEGAL RECOMMENDATION.
SO, UH, STAFF HAS NOT SEEN OR READ THROUGH ANY OF THE CONTENTS, SO I DON'T KNOW IF THERE'S A RECOMMENDATION FROM LEGAL COUNSEL ABOUT HOW TO PROCEED, BUT WE JUST WANNA MAKE SURE WE'RE CLOSING THAT LOOP ON, ON THOSE ITEMS TO INVENTORY EVERYTHING AT THIS POINT.
JUST YEP, WE'VE BEEN, WE'VE INVENTORIED IT AND UM, WAS IT CONSISTENT? I THOUGHT THAT WAS PREVIOUSLY CIRCULATED.
UM, SOMEBODY'S BIRTH CERTIFICATE WILL THE OJ GLOVES.
YEAH,
IT'S WHERE JIMMY HOFF BURIED
LET'S SEE WHAT WE HAVE IN HERE.
UM, DUSTY JUNK IS WHAT IT LOOKS LIKE.
IT'S, IT'S ALMOST ALL OUR, UM, DOCUMENTS THAT, JUST ORIGINAL DOCUMENTS FROM PAST PROJECTS AND OTHER MATERIALS.
IT'S, ARE THESE COPIES, UH, COPIES OF INVENTORY? YEAH.
SO I'M GONNA READ FROM ONE YOU GUYS CAN SHARE ALONG.
UM, AND THEN I'LL GIVE THIS TO YOU.
YOU CAN LOOK AT IT ON CORPORATION AND ORIGINAL BYLAWS FROM 1997.
EXECUTIVE SESSION MINUTES, UH, FINANCIAL STATEMENTS AND AUDITOR REPORTS, MINUTES AND AUDIO EXECUTIVE SESSION INTERVIEW TAPES, UH, CLOSED EXECUTIVE SESSIONS, UM, EXECUTIVE SESSION MINUTES.
THOSE ARE, ARE, UH, NOT, UH, RECORDINGS.
UM, ANNUAL FINANCIAL REPORTS, UM, AUDIO TAPES, MINUTES MEMO, UM, CERTIFIED AGENDAS SAFE DEPO.
UH, SAFE DEPOSIT BOX INVENTORY LIST.
SO WE HAVE A, WE'VE INVENTORIED A, AN INVENTORY LIST, UM, THE, UH, CHECK STUBS FOR CERTAIN CHECKS.
UH, TEXAS HERITAGE REGION BANK, ORIGINAL DOCUMENTS FOR DEPOSIT, UM, WHICH WE HAVE NO IDEA WHAT, WHY THAT'S, IT'S TOO IMPORTANT.
UH, AND THEN OTHER AGENDAS AND FINANCIAL STATEMENTS.
NO, NONE OF THINGS PRESENT OR FOREIGN FUTURE.
SO MY ONE, MY ONE THOUGHT WAS ON ALL THOSE EXECUTIVE MINUTES, WHAT, YOU KNOW, WHY WOULDN'T WE JUST KEEP THESE WHERE WE'RE KEEPING ALL THE CURRENT STUFF WE HAVE? UH, I THINK THAT BACK IN 2004 AND 2005, THAT'S NOT THE WAY THAT IT WAS BEING DONE.
IT WAS BEING DONE TOTALLY SEPARATE AND APART FROM OPERATIONS WITHIN THE CITY, IT WAS, WE DIDN'T.
AND SO THAT'S LIKELY WHY WE DIDN'T ADOPT HOW THE CITY WAS DOING EXECUTIVE SESSION UNTIL I WAS ON THE BOARD.
MY BIGGER QUESTION WILL BE FROM A LEGAL COUNSEL STANDPOINT, THIS OBVIOUSLY IS MUCH OLDER FOR THE MOST PART WITH THE EXCEPTION OF UH, THE INVENTORY LIST OF SEVEN PLUS YEARS.
I'D HAVE TO DOUBLE CHECK THE, UM, PROVISION.
UH, JUST REGULAR MINUTES OR ARE PERMANENTLY HELD.
BUT WE COULD MOVE THEM OUT OF THIS AND INTO YOUR OTHER MINUTES IN ORDER TO DO THAT.
AND SO, UH, THE REST OF THIS, WITHOUT HAVING FURTHER INFORMATION, MOST OF IT APPEARS TO BE, UH, ELIGIBLE TO BE, UH, DESTROYED.
BUT WE WOULD HAVE TO GO THROUGH THE PROPER PROCESS, WHICH IS TO IDENTIFY THEM, ALLOCATE THEM, LIST THEM, AND THEN APPROVE THE DESTRUCTION OF THEM.
OR CAN JUST THROW IT IN ANOTHER FOLDER OR ANOTHER OR PUT IT IN, STICK IT IN ANOTHER, STICK IT IN ANOTHER BOX, DEPOSIT BOX SOMEWHERE YOU GOT SELLING SAFETY DEPOSIT BOXES.
I KNOW BANK RECORDS IS SEVEN YEARS, SO YOU DON'T NEED TO HOLD THAT STUFF FOR SECOND.
SAY PASS IT ON TO YOUR PROBLEM.
PS YOUR PROBLEM OPEN IN 20 YEARS, BUT THAT'S NO MATCHBOX CARS.
SO I KNOW AT THE TIME THE BOARD WAS NOT IN ALIGNMENT WITH THE CITY PROCESSES, HOWEVER,
[02:15:01]
IT SOUNDS LIKE OUR AGENDAS AND MINUTES PROBABLY NEED TO BE KEPT WITH THE REST.THIS SHOULD POP BE POPULATED WITH THE REMAINDER OF YOUR, UM, RECORDS IN THE ORDINARY AND BE KEPT IN THE REGULAR ORDINARY, UM, BUSINESS METHODS HERE.
SO WE SHOULD SHOVE IT IN A BOX AND HIDE IT.
IS A RECOMMENDATION OR THAT, THAT'S MY RECOMMENDATION IS THAT THE, THE MATERIAL SHOULD BE EVALUATED FOR DESTRUCTION, DESTROY THOSE THAT ARE NOT, UH, REQUIRED TO BE MAINTAINED AND FOR THE REMAINING DOCUMENTS TO BE, UH, INCORPORATED INTO THE, UH, BUSINESS RECORDS KEPT IN THE ORDINARY COURSE OF BUSINESS BY THE BOARD OR BY THE CORPORATION.
SO CAN I MAKE A MOTION THAT CHAIRMAN AND VICE CHAIR GO THROUGH THAT AND MAKE THEIR BEST ESTIMATION OF YAY OR NAY? NO.
I, I WOULD ASK THE CITY SECRETARY'S OFFICE.
JUST SO WE'RE, CUZ THEY'RE TRAINED IN ALL THE RETENTION POLICIES, DOCUMENT RETENTION AND DESTRUCTION, THINGS LIKE THAT.
SO I'LL MAKE THE MOTION TO THE CITY SECRETARY OFFICE.
WE HAVE A MOTION BY VICE CHAIR LUCAS, SECONDED BY TREASURER COLEMAN.
DUNNO WHY THAT WAS HARD TODAY TO PROVIDE ALL DOCUMENTS TO THE CITY SECRETARY FOR THE FILING AND RETENTION AND DESTRUCTION OF ANY DOCUMENTS THAT ARE NO LONGER LEGALLY REQUIRED.
HELL, THEY'RE NOT
ALL RIGHT WITH THAT ITEM NINE EXECUTIVE SESSION.
THE BOARD WILL NOW RECESS THE OPEN MEETING AND RECONVENE IN EXECUTIVE SESSION PURSUANT TO TEXAS GOVERNMENT CODE SECTION 5 51 0 7 1 ATTORNEY CONSULTATION 5 51 0 8 7 ECONOMIC DEVELOPMENT AND 5 51 0 7 2 REAL PROPERTY TO DELIBERATE AND SEEK LEGAL ADVICE REGARDING RETAIL AND RESTAURANT INCENTIVES PENDING LEGAL ACTION AGAINST BCL OF TEXAS, A FIRST LIEN ON BLANK PROJECT, GRACELAND PROJECT TITAN PROJECT SKYBOX PROJECT DC TWO PROJECT, SQL PROJECT H W B, THE MEGASITE PROJECT, THE COTTONWOOD PROPERTIES INCLUDING A PENDING FIRST LIEN ON A PART OF THE PROPERTIES, THE EVALUATION OF AVAILABLE CORPORATE FUNDS FOR INCENTIVES AND DELIBERATE WITH LEGAL COUNSEL REGARDING CORPORATE BYLAWS AND AN AGREEMENT WITH THE CITY RELATED TO THE USE OF CITY EMPLOYEES TO SUPPORT CORPORATE BUSINESS.
ALL RIGHT, THE TIME IS 10:00 PM AND WE ARE RETURNING FROM EXECUTIVE SESSION.
THERE IS NO ACTION ON TEN, ONE TEN, TWO, TEN, THREE, TEN, FOUR, TEN, FIVE, TEN, SIX, TEN, SEVEN, TEN EIGHT, AND TEN NINE WITH NO OTHER BUSINESS.