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WE'LL CALL THE SESSION[1. CALL SESSION TO ORDER]
CITY COUNCIL WORK SESSION.ORDER FOR THURSDAY, JANUARY 18TH, 2024.
[3.1. Capital Improvement Project Updates (Matt Rector)]
PROJECT UPDATES.SO LAST WORKSHOP WE STARTED DOWN TALKING ABOUT THE, UH, WATER AND WASTEWATER IMPACT FEE.
UH, IMPACT LIST IS THE CAPITAL IMPROVEMENT LIST, THE END OF THOSE ON, UH, THE AMOUNT OF DEBT THAT WE MAY BE HAVING TO LOOK AT ISSUING.
SO TONIGHT WE HAVE THE ADDITIONAL, NOT MORE, YOU KNOW, CONVERSATION AROUND THAT REGARD WITH SOME ADDITIONAL INFORMATION.
SO WHAT WE'RE LOOKING FOR TONIGHT IS, UH, TO OPEN UP FEEDBACK FROM COUNSEL.
IF THERE'S ANYTHING THAT WAS ON THE PROPOSED REVISED LIST TO MOVE OUT OF THE FIVE YEAR CIP INTO LATER YEARS THAT, UH, COUNCIL FILL SHOULD NOT BE MOVED OUT FOR ANY NUMBER OF REASONS OR WANTS TO ASK QUESTIONS ABOUT 'EM TO BE ABLE TO DO THAT.
UM, IF THERE'S ITEMS THAT ARE CURRENTLY IN THE FIVE YEAR LIST THAT YOU KNOW, UH, AS A COUNCIL, YOU WOULD RECOMMEND THAT WE CONSIDER MOVING OUT OF THE FIVE YEAR HORIZON.
UM, WE DEFINITELY WANT TO HAVE THE OPPORTUNITY TO HEAR THAT.
UH, ALBERTA HAS, UH, BEEN BUSY OUR FIRST TWO WEEKS HERE AND, UH, DOING A LOT OF MATH AND PROJECTIONS ON, UM, THE, THE GROWTH PROJECTIONS FROM THE MASTER PLAN.
AND THEN WHAT WE ARE, WE ARE THINKING IS MORE REALISTIC WITH THE STAFF NUMBERS AS WELL, UH, AND HOW ALL THAT PLAYS INTO RATES AND SO ON AND SO FORTH.
SO THERE'S A LOT OF INFORMATION AVAILABLE.
AGAIN, NONE OF THIS IS STAFF RECOMMENDING TO DO A, B, OR C, YET WE'RE STILL IN THE DISCUSSION TO GATHER INFORMATION PHASE.
SO WITH THAT, UH, WE HAVE A, A SHORT SLIDE SHOW TO KIND OF SUMMARIZE, UH, THE INFORMATION FROM LAST TIME.
AND THEN WE HAVE THE PROJECT LIST AND WE ALSO HAVE SOME VISUALS TO TALK, YOU KNOW, GEOGRAPHIC KIND OF WHERE THE DIFFERENT PROJECTS ARE.
SO THAT MAY HELP COUNSEL, UM, HONE IN ON AREAS THAT YOU, YOU MIGHT WANNA SEE DELAYED OR ADDED OR MOVED UP OR BACK.
AND THEN LASTLY, WE HAVE THE, THE MATH TO TALK ABOUT THE MONIES ASPECT, UM, FOR WATER USERS AND, AND
SO INVOICE WATER USERS, RIGHT? SO REAL QUICK, WE'LL JUST RECAP WHAT WE COVERED.
SO THIS IS BASICALLY THE CIP AS IT'S APPROVED TODAY.
UM, TOTAL IS 124 PROJECTS, ONE LITTLE OVER A BILLION DOLLARS.
52 OF THOSE PROJECTS ARE WATER AND WASTEWATER FOR A LITTLE OVER 600 MILLION.
UM, THESE ARE SOME OF THE WATER AREAS THAT WE WERE, THAT ARE OUR CONCERNS.
UM, THIS IS THE LIST OF ALL THE WATER PROJECTS.
AND YOU CAN SEE OVER THE FIVE YEAR PERIOD, YOU'RE TALKING ALMOST 220 MILLION FOR WATER.
AND THEN THIS IS WHAT, WHAT MY FIRST PASS WAS TO REVISE THIS DOWN.
UM, AND THIS IS WHAT WAS PRESENTED LAST TIME.
AND THEN THESE ARE THE AREAS OF MOST CONCERN FOR WASTEWATER THAT WE TALKED ABOUT LAST TIME.
THIS IS THE CURRENT CIP AS IT CURRENTLY STANDS TODAY WITH, UM, I, A TOTAL LOAN THERE, BUT IT WAS LIKE 600, NO, 400 AND SOME ODD MILLION DOLLARS I THINK, UH, TOTAL FOR THE FIVE YEAR.
THIS WAS MY RECOMMENDATIONS ON HOW WE COULD SHIFT THINGS AND TRY TO DECREASE THAT.
UM, AND HERE'S THE ULTIMATE WHERE THAT
UM, NO, I FLEW THROUGH THAT PRETTY QUICK, BUT I FIGURED YOU GUYS WANNA GET TO THE MATH STUFF MORE THAN REHASHING STUFF THAT WE TALKED ABOUT LAST TIME.
WELL, AND THE OTHER THING THAT, THAT I WANT, UH, TO HIGHLIGHT TO COUNSEL IS THAT, THAT THIS LIST ISN'T PAIRED DOWN AS FAR AS IT NEEDS TO BE PARED DOWN, YET.
IT NEEDS TO BE PARED DOWN EVEN FURTHER.
AND TO MAKE THAT POINT APPARENT, YOU KNOW, WE'LL TALK, WE'LL TALK MATH, WE'LL TALK IMPACTS, YOU KNOW, TO RATE PAYERS AND THOSE SORTS OF THINGS AND, AND DEBT SERVICE.
SO, WE'LL, WE'LL LET ALBERTA GO THROUGH THAT INFORMATION SO YOU AT LEAST HAVE AN UNDERSTANDING OF WHAT WE'RE TALKING ABOUT.
AND THEN WE KIND OF NEED TO GO BACK TO GETTING INPUT FROM COUNSEL ON AREAS.
WE WANT TO FOCUS ON AREAS WE WANT TO DELAY AND SO ON AND SO FORTH.
SO WE CAN PAIR DOWN THE LIST EVEN FURTHER.
AND BRIEFLY, I JUST WANT TO TOUCH ON THIS EXHIBIT THAT'S UP THERE.
SO LAST TIME WE PRESENTED THE WATER USAGE AND, UH, SOME OF THE QUESTIONS THAT WERE ASKED WAS, YOU KNOW, TALKING ABOUT EMERGENCY CAPACITY, ACTUAL CAPACITY, AND THEN WHERE ARE THE WATER RESTRICTIONS
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KICK IN.SO I'VE UPDATED THIS SO THAT YOU CAN SEE THE YELLOW LINE THERE.
PHASE ONE WATER RESTRICTIONS, THAT ORANGE LINE WHERE WE GO PHASE TWO, WATER RESTRICTIONS, AND THAT RED LINE PHASE THREE WATER RESTRICTIONS.
AND I KNOW THESE NUMBERS ARE SMALL, BUT YOU CAN SEE THAT HAVE INDICATED OUR PEAK DAY USE FOR EACH OF THOSE THREE YEARS.
AND YOU CAN SEE THAT WE'RE PRETTY STEADILY CLIMBING FOR OUR, OUR PEAKS.
WE KNOW THERE'S DIPS AND VALLEYS BACK AND FORTH, BUT IF YOU PUT A SET A TREND LINE TO THIS, YOU'LL SEE THAT WE'RE, WE'RE INCREASING AND OUR, OUR DAILY PEAKS ARE GETTING MORE AND MORE CLOSE TO THAT MAXIMUM CAPACITY THAT WE HAVE AVAILABLE TO US.
SO, UM, THIS IS IN YOUR, UH, YOUR ONEDRIVE OR YOUR COUNCIL BOX.
SO IT'S THERE FOR YOU TO REVIEW.
I JUST WANTED TO LET YOU KNOW THAT WE HEARD YOU, WE PROVIDED YOU THE INFORMATION.
AND SO I JUST WANTED TO MENTION THIS BEFORE WE LET ALBERT GO.
JUST THE SLIDE SHOWS IN THERE.
UH, THE WHOLE SLIDESHOW SHOULD BE IN THERE.
OKAY, SO YOU GONNA FORGOT HOW TO GET IN THERE.
SO, UM, THIS IS THE FIRST SHEET WITH THE ADOPTED CIP WATER AND WASTEWATER PROJECTS THAT, UM, WAS PRESENTED, UM, LAST MEETING ON JANUARY 4TH.
SO WE STARTED WITH THE PROJECTED WATER, WATER LS WITH AN ANNUAL GROWTH RATE RATE FOR THE MASTER PLAN PROJECTIONS.
UM, AND THEY WERE PROJECTING EIGHT POINT 18.8% ON AN ANNUAL GROWTH RATE.
UM, THE THESE FOR WATER? FOR WATER, YES.
AND THESE ARE OUR CURRENT OR OUR ACTUAL NUMBERS AS FAR AS LU UP THROUGH FEBRUARY OF 23.
AND SO WE TOOK THESE NUMBERS STRAIGHT FROM THE MASTER PLAN THAT WERE PRESENTED ON THE FOURTH.
AND THEN HERE'S THE PROJECTED WASTEWATER L UES, UH, BASED OFF THE WASTEWATER PLANT.
UM, AGAIN, THESE ARE ACTUAL NUMBERS HERE IN BLACK, STARTING IN 24 IS THE PERCENTAGES AND THE, THE INCREASE IN THE NUMBER OR THE TOTAL NUMBER OF WASTEWATER, LU AS OF FEBRUARY, PROJECTIONS BASED AGAIN ON THE MASTER PLAN.
UM, BUT WE DO WANNA NOTE THAT, UM, THE WATER MASTER PLAN AND THE WASTEWATER MASTER PLAN WERE DONE BY TWO SEPARATE CONSULTANTS.
SO, UM, THE GROWTH RATE AND THE GROWTH NUMBERS AREN'T, THEY DON'T CORRELATE.
SO, UM, WE JUST WANNA POINT THAT IS THAT 18.8% THROUGH 2024 TO 27 CORRECT? OR EACH YEAR IS 18? NO, EACH YEAR, I BELIEVE EACH YEAR.
EACH YEAR THEY SAID THEIR ANNUAL GROWTH RATE WAS 18.8%.
I'D HAVE TO DO THE MATH TO SEE IF THAT'S RIGHT.
10% OF 10,000 WOULD BE A THOUSAND.
AND THEN SO YOU ALMOST LOOK AT RIGHT? YEAH.
2000 JUST UNDER 2000 ES PER YEAR, WHICH IS WHAT IT'S SHOWING.
WHAT I QUESTION THAT IS, WE HAVEN'T HAD 18% GROWTH IN OUR BUSIEST YEAR EVER.
WELL, THERE'S NO REASON TO BOTHER WITH QUESTIONING IT.
THIS IS JUST THE STATED FACTS OF ARE IN THE PLANS.
SO NOW WE FLIP TO THE NEXT PAGE.
THAT'LL BE COMING UP, WHICH IS US LEVELING THIS, WHAT WE THINK IS ACTUALLY RELEVANT.
WE JUST WANTED TO SHOW YOU, THIS IS WHAT THE MASTER PLAN INDICATED.
LOOKS LIKE THEY UNDER PROJECTED THE LUE FOR WASTEWATER, THOUGH.
IF YOU DO THAT UNDER, YOU'RE NOT REQUIRED TO GO TO TCQ AS QUICK IF YOU, UNLESS USE ACCURATE NUMBERS, BUT THEY'RE NOT USING ACCURATE NUMBERS 'CAUSE IT WAS 17 LAST YEAR, RIGHT? YOU SAID WHAT I SAYING THAT'S NOT PROJECTED, THAT WAS ACTUAL YEAH, IF YOU DON'T WANNA HAVE AN ISSUE, TELL ME IF I'M WRONG, MATT, IF YOU DON'T WANNA HAVE AN ISSUE WITH TCEQ AND YOU'RE NOT GONNA HIT CERTAIN MILESTONES, YOU CAN DIAL DOWN.
YOU LIE I SAY THAT 'CAUSE MATT WASN'T
NO, BECAUSE IT'S, IT THE, YOU COULD DIAL IT DOWN AND SAY WE'RE NOT GONNA HIT IT FOR A YEAR.
IT DIDN'T HAVE TO DO WITH OUR PROJECTIONS AS MUCH AS IT HAS TO DO WITH OUR ACTUAL READINGS AT THE PLANT VERSUS WHAT THE PLANTS.
UH, SO IF A-T-C-E-Q JAMES IS RIGHT, IT'S WHAT YOUR ACTUAL CAPACITY IS.
SO WE LOOK AT, WE TRACK THE FLOWS THROUGH THE PLANTS BECAUSE WE HAVE TWO PLANTS.
WE TRACK THE FLOWS THROUGH THOSE ON A REGULAR BASE ON A DAILY BASIS.
AND WHEN WE HIT 75% CAPACITY AT OUR ACTUAL FLOWS, NO PER T CQ, THAT'S WHEN WE HAVE TO START PLANNING FOR GROWTH.
SO IT'S NOT PROJECTIONS, IT'S ACTUAL, IT IS ACTUAL USE.
SO WE DON'T HAVE TO SPEND A LOT OF TIME, I THINK, ON THIS SLIDE SO YOU CAN GET TO THE REAL NUMBERS.
BUT THE POINT IS, IS THAT SHE WENT THROUGH THE EXERCISE AND I'LL LET HER WALK THROUGH THE ADDITIONAL, UH, CATEGORIES SO YOU UNDERSTAND WHAT INFORMATION'S ON HERE.
BUT SHE WALKED THROUGH ALL THE NUMBERS STATED AS THEY WERE MASTER PLAN AND THE ADOPTED CIP.
SO GO AHEAD AND, AND WRAP UP THE REST OF THE SLIDE FOR THEM.
SO AGAIN, UM, THE NEXT SECTION IS THE ADOPTED WATER AND WASTEWATER
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PROJECTS.SO THESE TWO WATER AND WASTEWATER LINES ARE, AGAIN, BASED OFF OF THE ADOPTED AMOUNTS.
AND SO FOR 14 IT'S 2 7 217 0.3 MILLION AND 1 58 0.1 MILLION AND SO ON UNDERNEATH THAT IS OUT OF THESE PROJECTS WHAT'S UNFUNDED? SO, UM, BASED ON MY CALCULATION, WE HAVE ABOUT IN 24, ABOUT 175.1 MILLION.
THAT'S UNFUNDED 25, 151 0.1 MILLION.
I WANNA POINT OUT THAT, UM, ON WASTEWATER PROJECT NUMBER 10 OF THE SOUTHEAST LOOP INTERCEPTOR, UH, WE'RE SUPPOSED TO GET FUNDS FROM THE COUNTY OF ABOUT 10 MILLION.
AND SO THOSE HAVEN'T BEEN RECEIVED YET.
SO I TOOK THAT OFF THE TOTAL OF AN UNFUNDED AMOUNT.
SO FOR THIS NEXT YEAR, WELL THIS CURRENT YEAR AT 165.1 MILLION, THE NEXT SECTION IS THE DEBT.
WHAT WOULD IT COST FOR US TO BORROW, WHAT WOULD BE OUR PRINCIPAL INTEREST PAYMENTS ON THE 24 ISSUE AT 165.1 MILLION? UM, IN 25 TO 151 MILLION.
SO FOR THE 165.1, WE'RE LOOKING AT PRINCIPAL INTEREST PAYMENTS OF 11.4, UH, A YEAR.
SO YOU TAKE THAT OUT FOR 25 YEARS.
THE 25 ISSUE, UM, THE 151.1 MILLION WOULD BE 10.495 AND YOU CARRY THAT OUT FOR 25 YEARS, SO ON AND SO FORTH.
UM, SO YOU TAKE THE SUMMARY OF THOSE PLUS OUR EXISTING DEBT FOR 24, WE'D BE AT 22,072,725, AND THEN 25 IT'D BE 32.5 MILLION.
SO BASED ON OUR CURRENT WATER AND WASTEWATER REVENUES AND OUR PROJECTIONS, AGAIN, THESE ARE ACTUALS LOOKING AT 24 AND 25 AND SO ON, BASED ON THE MASTER PLAN NUMBERS UP HERE, THIS IS WHAT KIND OF REVENUES WE WOULD BE GENERATING AND THE INCREASE OR ADDITION TO FUND BALANCE IN EACH YEAR.
AGAIN, IF THOSE PROJECTIONS WERE ACCURATE OR MAYBE NOT ACCURATE, BUT MORE REALISTIC TO WHAT WE FEEL IS GONNA HAPPEN.
SO YOUR NUMBERS THERE ARE BASED ON AN 18% INCREASE? YES.
WELL, THIS IS JUST THE EXERCISE.
SO LET'S, WELL THE REVISE, IT'S NOT GONNA BE MUCH BETTER.
RANDALL, I YOUR HOPE I'M TOO HIGH.
BUT WE HAVE TO SHOW YOU LIKE THE WAY IT IS, RIGHT? FACTUALLY.
AND THEN WHAT WE THINK YOU'RE ON A CIVILIAN, YOU'VE TAKEN OFF 165 MILLION.
SO, AND THEN THE GROWTH NUMBERS ARE GONNA BE WEAK 50 MILLION IN FIVE YEARS.
THE FIVE TIMES WHERE DEBT SERVICE MAY GO DOWN 10% OR WHATEVER.
SO THIS LAST SECTION IS WHAT FUNDS ARE AVAILABLE? SO FROM OUR, UH, UTILITY IMPACT FEE FUND, UM, WE ENDED THIS YEAR STARTING, UH, EXCUSE ME, THIS YEAR WITH 27.2 MILLION.
UM, AGAIN, BASED ON THE NUMBERS ABOVE, WE WOULD BE ADDING, UM, TO THAT FUND BALANCE OF 30 MILLION THIS YEAR, 17.7 THE NEXT YEAR.
UM, AND THEN IF WE WERE TO TAKE OUT THESE DEBT PAYMENTS THAT WE CALCULATED UP HERE, UM, THAT WOULD LEAVE THIS KIND OF FUND BALANCE FOR THE UTILITY IMPACT FEE FUND.
UM, AND THEN WHAT THE EFFECT OF THAT WOULD BE, AND THEN HOW MUCH OF THE OPERATING INCOME COULD WE USE TO OFFSET OR ASSIST THE UTILITY, UM, IMPACT FUND.
SO WE ADD THAT IN AND, AND YOU CAN SEE HERE, UM, WE COULD AFFORD, UM, THAT KIND OF DEBT PAYMENT IF THOSE NUMBERS, UM, WERE TO COME TO LIGHT AND WE WOULD BE GOOD UNTIL LIKE YEAR 26, 27.
SO NOW THAT'S WHAT EVERYBODY'S BEEN KIND OF WAITING TO SEE IS THIS IS OUR REVISED PROJECTION.
SO SAME FORMAT FOR OUR WATER L UM, THESE ARE ACTUALS BASED ON WHERE WE'RE AT NOW, WE'RE SAYING, YOU KNOW, IT IS MORE REALISTIC TO BE ABOUT 9% IN WATER TO 8,212, 9% IN 25.
AND THEN, UM, BASED ON WHAT WE ALREADY KNOW, WE HAVE APPROVED AS FAR AS LU WHEN THEY COME ONTO THE SYSTEM, THEN THE 18.8 MAY BE MORE REALISTIC.
UM, THE, THE REASON ABOUT THEM COMING ONTO THE SYSTEM IS THAT THE PROJECTS THAT ARE COMING INTO ENTITLE NOW, WE'RE NOT COMMITTING TO SERVE THEM UNTIL AFTER THE SUPPLIES ARE IN, IN PLACE THE WASTEWATER PLANT IS BUILT.
WE EXPECT THERE BE A FLOOD OF, OF FOLKS IN, YOU KNOW, GOING FORWARD WITH SECURING THEIRS AND STARTING TO BUILD.
UM, THAT'S WHAT WE'RE EXPECTING TO HAPPEN.
SO IS IT RESIDENTIAL OR IT'S IT'S A MIXTURE, BUT PREDOMINANTLY IT'S RESIDENTIAL.
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SO IN 2022 WE HAD 2080 HOMES WE OPENED UP IN THE CITY OF HAD.SO TO GET THAT 18.8% IN 2026, YOU'RE TALKING LIKE IF I HAD TO GUESS 4,000 HOMES, YOU CAN SEE EXACTLY HOW MANY YOU HAVE TO OPEN BECAUSE IT'S THE DELTA BETWEEN 89 51 AND TEN SIX THAT WOULD HAVE TO BE OPENING INSIDE THE CITY OF HU'S WATER UTILITY.
AND THAT COULD BE APARTMENTS, RIGHT? IT COULD BE OTHER THINGS.
REALLY ONLY 3000 HOMES FROM WHAT WE HAD IN 23.
JUST THINK ABOUT THAT FROM A TRAFFIC STANDPOINT.
IN ORDER FOR THIS ALL TO GO OUT, YOU'RE TALKING THAT'S LIKE THE 10% GROWTH IN POPULATION IN ONE YEAR ON TOP OF THESE OTHER YEARS WHERE WE'D BE LIKE 60,000 PEOPLE OR SOMETHING.
YEAH, BUT WE ALSO HAVE, WE ALSO HAVE SKY BOX IN THAT IS NOT, THAT'S A SIGNIFICANT NUMBER OF TOWARDS THOSE NUMBERS IF THAT THAT'S INCLUDED IN THERE, RIGHT? YES.
LIKE YOU SAID, IT WASN'T THAT MUCH.
YEAH, I DIDN'T THINK THEY WERE.
WELL, IT'S MORE, IT IS WHAT, SO IT'S MORE HAVE WE, HAVE WE GIVEN AN SCR FOR THE FULL SKY BOX OR IS IT FOR JUST THE TWO BUILDINGS THAT THEY HAVE PLANNED OR JUST THE FIRST BUILDING? WHERE, WHERE ARE WE AT WITH THAT? I BELIEVE IT WAS JUST THEIR FIRST DEVELOPMENT.
AND WHAT WAS THE NUMBER ON THAT? LOUISE? YEAH, I'LL LET HER KEEP WALKING THROUGH THE MAP, BUT OKAY.
BUT YES, SO, SO EFFECTIVELY WE'RE, WE'RE LOOKING AT ABOUT 700 L LUE FOR THE NEXT TWO YEARS IN THE, UH, CITY OF IDAHO'S WATER JURISDICTION.
AND THEN, UM, ABOUT 1200 TO 1400 IN THE SEWER BECAUSE THE SEWER CCN IS LARGER THAN THE WATER CCN.
MAKE SURE I'M UNDERSTANDING THE WATER LUE ROW.
SO FROM 2020 TO 2022, IT GOES FROM 5,700 TO 6,200 UHHUH
IS THAT, THAT'S NUMBER OF CONNECTIONS.
NOT, WE'RE NOT ADDING 6,200, WE ARE GOING NO, THAT'S TOTAL THE TOTAL NUMBER, ACTUAL NUMBER.
SO, AND THE PERCENT SHOULD BE THE CHANGE FROM THE PREVIOUS YEAR.
SO IT'S REALLY 500 OR A LITTLE BIT LESS THAN 500 DIFFERENCE.
BETWEEN 2020 AND 2021, THE WATER, UH, LS EFFECTIVELY WENT UP.
MAKE SURE AND THE LAST QUESTION, OKAY, SO 2021 TO 2022, WE HAD A 2080 HOMES.
THEY WEREN'T ALL IN THE HU OF CCC M THEY WERE JONAH, THEY WERE MANVILLE.
AND SO THAT WAS SEVEN WHATEVER, WHATEVER HOMES AND BUSINESSES WE OPENED UP IN THE HU OF CCC NM WAS 700 LS, ROUGHLY 707.
WHEN WE SAY WE IN 2026, WE HAVE ALL THESE HOMES.
HAVE WE DELINEATED WHICH HOMES AND THINGS ARE IN JONAH IN MANVILLE AND HU ARE WE JUST SAYING BASED ON WHAT WE HAVE PLATTED LOCKS IN THE CITY LIMITS, WE HAVE X COMING.
NO, I MEAN YOU CAN SEE THE, THE WASTEWATER I WE SCORE AT A DIFFERENT RATE THAN THE WATER.
WELL, I KNOW, AND THAT'S BECAUSE, SO THE S THE WATER'S ON BOTH AND THE WASTEWATERS NOT, SO THE SCRS ARE EFFECTIVELY OUR GAS GAUGE ON THE QUESTION THAT YOU'RE ASKING BECAUSE THE SER IS GOING TO ACCOUNT FOR LUS IN THE WASTEWATER IF IT'S IN JONAH WATER.
AND IT'S GONNA ACCOUNT FOR HU WATER AND WASTEWATER IF IT'S IN THE HU WATER ZONE.
SO THAT'S EFFECTIVELY LIKE OUR GAS GAUGE SHOWING US KIND OF WHERE WE'RE AT AND WHERE WE'RE TRENDING.
AND WHAT MATT EXPLAINED TO Y'ALL LAST TIME IS, AS OF RIGHT NOW, IF YOU ADD UP WHAT HAS BEEN AUTHORIZED UNDER THE SCRS, IT'S OVER 10,000 UUVS TOTAL.
AND I DON'T KNOW HOW MUCH OF THAT'S WATER AND WASTE WATER, I DON'T REMEMBER.
BUT UM, BECAUSE I KNOW IT'S NOT ONE TO ONE, IT COULD, IT'S NOT ONE TO ONE BUSINESS IS USING 20 I OF WATER AND 400.
IT'S NOT, DOESN'T MEAN THAT A HOUSE, YOU KNOW, IT DOESN'T MEAN EVERY ONE OF THOSE AS TO DOING WHAT I'M TALKING ABOUT.
THEY'RE, THEY'RE PUTTING 'EM IN DIFFERENT POTS.
AND THAT, AND THAT'S KIND OF OUR GAS GAUGE.
THAT'S HOW WE'RE GAUGING WHERE WE'RE PERFORMING VERSUS LIKE WHAT OUR PROJECTIONS ARE.
AND TO GO BACK AND ANSWER THE QUESTION ABOUT SKYBOX, SKYBOX WAS THEIR ENTIRE FIRST DEVELOPMENT AND IT'S 519 LUE 519.
I MEAN, THAT'S STILL A SIGNIFICANT PERCENTAGE OF OUR GROWTH.
SO Y'ALL ARE KIND OF WITH THIS WHOLE SER PROCESS, Y'ALL KIND OF LIKE PUMPING THE BRAKES AND KIND OF LIKE MESSING, I MEAN NOT MESSING WITH THE GROWTH, BUT OBVIOUSLY YOU'RE HOLDING THE NUMBERS RIGHT? BECAUSE WE'RE OBVIOUSLY WAITING FOR THE WATER TO GO.
IT'S BECAUSE WE'VE, WE'VE REACHED A POINT, SO YOU'RE KIND OF MANIPULATING THIS.
WE'RE WE'RE, WE'RE MESSAGING, WE'RE MESSAGING TO THE DEVELOPMENT COMMUNITY YEAH.
THAT YOUR, THEIR PIPELINE CAN'T GET AHEAD OF OUR ABILITY TO DELIVER SERVICE.
NO, I APPRECIATE, I APPRECIATE THAT.
JUST BECAUSE, I MEAN, WHAT HAS TO BE DONE BECAUSE THE FLOW IS NOT THERE.
SO, UH, WITH THE PROJECTED WASTEWATER L LUS, UM, AGAIN, WE'RE LOOKING AT ABOUT 9%, UM, 4 20, 4 25, AND THEN WE BUMP IT UP, UM,
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IN 26, 27.AGAIN, SAME SCENARIO OR SAME METHODOLOGY.
UM, FOR THE REVISED CIP WATER, UM, AND WASTEWATER PROJECTS, UM, THOSE ARE THE ONES THAT, UH, MATT BROUGHT TO YOU LAST ON THE FOURTH, UH, PUSHING SOME OF THOSE PROJECTS OUT.
UM, BUT HERE, MOST OF THOSE THAT WERE PUSHED OUT WERE IN THE LATER YEARS, NOT SO MUCH 24 25 BECAUSE UM, WE STILL HAVE 217.2 MILLION AND 24 AND 146.4 AND 25.
WHAT'S, UM, UNFUNDED, UM, THE 10 MILLION FOR THE WASTEWATER NUMBER 10 PROJECT, UH, WE HAVE ABOUT 159.6 MILLION IN 24 THAT WE WOULD NEED TO BORROW FOR.
CAN I, CAN I ADD ONE POINT OF CLARIFICATION HERE JUST SO THAT IT'S ON EVERYBODY'S RADAR? REMEMBER WE HAVE THE WASTEWATER TREATMENT PLANT PROJECT, WHICH IS ESTIMATED TO BE $180 MILLION.
AND IF WE DO CMAR, WE HAVE TO FUND THAT $180 MILLION IN THE FIRST YEAR.
THESE NUMBERS ARE ASSUMING WE DON'T DO CMAR AND THEN WE BREAK IT UP IN 90 AND 90.
SO IF WE DECIDE TO MOVE FORWARD WITH CMAR, WE PULL 90 MILLION FROM 25 AND PUSH IT INTO 24.
SO THAT NUMBER IN 24 WOULD GET INCREASED BY AN EXTRA $90 MILLION.
WELL, THE ONLY, THE ONLY QUESTION WILL BE WHEN, BECAUSE ALL THESE NUMBERS ARE ASSUMING WE'RE NOT GETTING ANY OF THAT GRANT MONEY, BUT FROM THE FEDS WE'VE ASKED FOR, WHICH SHOULD COVER 50% OF ITS COST, RIGHT? NO, IT'S NOT 50% OF THE COST EOR GRANT IS ONLY ABOUT $30 MILLION IS TO GET THE FULL AMOUNT.
BUT THAT WOULD BE ROUGHLY A SIXTH OF THE WASTEWATER TREATMENT PLAN PROJECT.
AND, AND IF YOU GOT THAT, YOU WOULD PULL 30 MILLION OUT OF YEAR TWO INSTEAD OF NEED 300 MILLION, WE NEED 270 MILLION IF WE COULD.
SO WITH THE CMAR, THIS, THIS, SO, 'CAUSE WE HAVE A CMAR ON THE SOUTH WASTEWATER TREATMENT, THEY'RE ALREADY EXPANSION, RIGHT? THAT IS THE CMAR.
BUT THE STAGE THAT THEY'RE IN RIGHT NOW IS BASICALLY LIKE VALUE ENGINEERING OKAY.
SO WE'VE PAID THEM TO HELP BRING DOWN THE COSTS UHHUH OF THE, OF THE EXPANSION OF THE EXPANSION.
AND THEY HAVE BEEN WORKING AT THAT.
NOW WE, I KNOW WE HAVEN'T FINALED IT'S LIKE A DEAL, LIKE A PRICE, RIGHT? 'CAUSE AS THEY LIKE GET SAVINGS IN ONE AREA, THE MATERIALS GO UP IN ANOTHER.
SO THINGS ARE KIND OF SHIFTING AROUND.
BUT THEY ARE BRINGING THE NUMBER DOWN FROM 180, BUT IT'S NOT GONNA BE A SUBSTANTIAL AMOUNT.
IT WILL BE SOMETHING, BUT IT'S NOT GONNA BE LIKE ONE 60.
OH, SUDDENLY IT'S ONLY A $70 MILLION PLANT.
THAT'S NOT REALLY GONNA HAPPEN.
SO, WHICH BY THE WAY, IT PAINS ME TO SAY THAT WE'RE SPENDING $180 MILLION LITTLE WASTEWATER TREATMENT PLANT.
I, I JUST, JUST BLOWS MY MIND DOES ME TOO.
'CAUSE OTHER CITIES STARTED A YEAR BEFORE US AND THEY'RE DOING LIKE 20 MILLION GALLON EXPANSION FOR LIKE 200 AND I'M LIKE 180 FOR SIX, 200 FOR 20 MILLION.
WELL, IS IT REALLY, IS IT REALLY 20 OR IS IT, OR IS IT MORE LIKE SIX AND A HALF? THAT'S RATED FOR 20? BECAUSE THAT'S THE SAME THING WE'RE DOING.
I JUST DON'T KNOW WHAT EVERYBODY REPORTS, WHICH, YOU KNOW, IT'S PROBABLY NOT ALWAYS ONE.
I I JUST DON'T KNOW WHETHER, BECAUSE TECHNICALLY OURS IS, IS IT A THREE OR FOUR TON MULTIPLIER PEAKING FACTOR? IT WAS FOUR.
NOW WITH THE NEW RERATE, IT'S LIKE 3.5 I THINK.
SO WE'RE BUILDING A SIX MGD PLANT, BUT WE ACTUALLY HAVE TO DESIGN AND BUILD A SIX TIMES 3.5 MGD PLANT IN ORDER TO HANDLE THE PEAKING FACTOR THROUGH TCQ, WHICH IS PREDOMINANTLY INFLOW AND INFILTRATION FROM RAIN EVENTS THAT GET INTO THE SEWER LINES AND THEN OVERWHELM THE PLANT IF YOUR PLANT ISN'T SIZED APPROPRIATELY TO BUILD, TO HANDLE IT.
SO ANYWAY, SO WITH UM, THESE AMOUNT OF UNFUNDED PROJECTS FOR THESE FIRST TWO YEARS, UM, THE ESTIMATED DEBT COST IS 21.7 AND 24 AND 31.9 BASICALLY IN 25.
WE CAN GO AND GET THAT TO THE BOTTOM LINE.
WHEN YOU TALK ABOUT THAT, THAT NUMBER ABOUT PEAKING NUMBER AND STUFF, HUH? HAVE THEY EVER LOOKED AT, YOU KNOW, AS YOU GET TO A LARGER AND LARGER PLANT THAT REALLY, THAT PEAKING NUMBER SHOULD BE LESS BECAUSE THE RAIN EVENT, WHETHER THE SIZE OF YOUR PLANT OR NOT IS NOT GONNA BE THAT MUCH EXPONENTIALLY.
WELL, SO HERE'S THE FUNNY THING ABOUT THAT, RANDALL, I I, I GOT TAUGHT WAY BACK WHEN THAT WHEN YOU BUILD A BIGGER PLANT, YOU BUILD BIGGER PIPES AND THE BIGGER PIPES CONVEY WATER FASTER.
SO, SO EVEN THOUGH IT MAY BE THE SAME RAINFALL EVENT, IT'S JUST WHAT COULDN'T GET TO THE PLANT BEFORE THROUGH HYDRAULIC, YOU KNOW, CONSTRICTION, NOW YOU HAVE A BIGGER SUCTION, YOU KNOW, DRAWING IT DOWN TO THE PLANT BECAUSE YOU HAVE TO, THAT THEN ALLOWS EVEN MORE WATER TO GET TO THE PLANT.
THAT'S, AND THEN AS YOU GROW
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AREA AND YOU GROW, YOU HAVE MORE IMPERVIOUS COVER, SO THERE'S LESS, YOU KNOW, GROUND TO ABSORB THE WATER.IT'S KIND OF, IT'S ALL GONNA FLOOD.
USUALLY WHERE YOU END UP HAVING IT IS THE, IS THE, UM, AND, AND RICK WILL PROBABLY LAUGH WHENEVER I SAY THIS, BUT IT'S USUALLY THE MANHOLE THAT IT'S FLOODED, RIGHT? THE THE, THE CREEKS COME UP AND IT'S THE MANHOLE'S UNDER IT.
THAT'S USUALLY THE MANHOLE THAT BUSTS AND THEN ALL THE CREEK WATER STARTS RUNNING IN AND THEN IT JUST MAKES IT WAY DOWN TO THE PLANT.
BUT ANYWAY, SO, SO NOW YOU'RE GONNA GET DOWN TO THE BOTTOM LINE HERE, UH, WITH THE ACTUAL PROJECTED NUMBERS THAT, WITH THE REVISED, UH, LIST.
SO SAME SCENARIO, UM, THE UTILITY IMPACT FEE FUND, UM, STARTED WITH 27.2 MILLION.
THIS PROJECTED ADDITION IS BASED ON OUR LUE PROJECTIONS ABOVE.
SO YOU TAKE THE L LUE PROJECTED ABOVE, MULTIPLY IN TIMES THE EXISTING IMPACT FEES, AND THAT'S THE ADDITION TO FUND BALANCE NUMBER, RIGHT? IMPACT FEE'S ONLY, NOT, UM, USAGE.
USAGE IS GONNA BE DOWN OPERATIONS.
SO WITH THE DEBT, UM, PAYMENTS, UM, HERE'S THE EFFECTS ON THE UTILITY, UH, IMPACT FUND OR WE'RE OUT MONEY IN 25.
UH, YOU'RE YES, YOU, YOU ARE NEGATIVE FUND BALANCE IN 25.
THIS IS, THAT'S COMING UP BELOW IT.
BUT YEAH, IF I GET THAT TRUE, EVEN STILL WITH THE $10, YOU'RE STILL OUT OF MONEY.
YOU'RE 3.1 SHORT WITH A $10, UH, AND THAT'S NOT A $10, THAT'S $10 WATER AND $10 WASTEWATER.
SO IF YOU'RE A COMBINED CUSTOMER, THAT'S A $20 HIT.
RIGHT? SO THAT SAYS WITH RATE INCREASE, AND THAT'S WHICH ONE ON THIS RATE INCREASE SHEET, IT'S GONNA BE THE ONE THAT'S THE $10 BECAUSE YOU HAVE PERCENTAGES AND DOLLARS.
THE REVISED SHEET IS DOUBLE-SIDED.
WELL I THINK HE WAS LOOKING AT THE LIST THAT HAS LIKE THE BILLING, THE BILLING ON IT, WHICH IS THIS WITH THIS RIGHT HERE, RANDALL.
SO IF WE GO TO 20 BUCKS A MONTH, WE'RE OUTTA MONEY IN 2025.
IT IS 20 BUCKS A MONTH IF YOU'RE BOTH A WATER AND SEWER CUSTOMER, BUT IT'S JUST $10 TO EACH SIDE.
AND SO THEN WE HAVE TO FIGURE OUT HOW MUCH WE CAN HIT THE WASTEWATER.
MORE CUSTOMERS THERE SO MUCH YOU CAN GET FROM THE HU OF WATER.
SO HERE'S, HERE'S WHERE YOU START MOVING LEVERS, RIGHT? YEAH.
SO IT'S KIND OF LIKE BEING IN THE, IN THE, UH, ENGINEERING ROOM OF A, OF A LOCOMOTIVE.
YOU, YOU HAVE ALL THE LEVERS AND YOU CAN START MOVING 'EM AND TRIMMING THINGS AND DOING THE DIFFERENT THINGS.
SO ONE THING THAT YOU CAN DO IS WE CAN GO BACK INTO THE LIST OF PROJECTS AND NOT SPEND AS MUCH MONEY FOR CONSTRUCTION PROJECTS NOW, WHICH MEANS PUSHING MORE PROJECTS OUT OR SAYING THE THE RATE PAYERS AREN'T GONNA PAY FOR THOSE DEVELOPMENT IS, OR IT'S GONNA BE PAID FOR BY THET.
THAT'S ONE WAY TO GET MONEY OUT OF THE, THE, THE SLIPS.
THE NEXT THING WOULD BE TO LOOK AT THE IMPACT FEES.
YOU COULD INCREASE IMPACT FEE RATES AND INCREASE REVENUE THERE, WHICH HAS NOTHING TO DO WITH THE MONTHLY BILL OF SLOW DOWN YOUR GROWTH.
YOU NOW TAKE AWAY FROM YOUR RATE.
YOU CAN'T, YOU, YOU CAN'T JUST RAISE IMPACT FEES INFINITELY.
THAT'S TRUE BECAUSE WE DO HAVE, BECAUSE OF THE TCQ LEVEL OF ALREADY HITTING THE 75% PEAK, WE STILL HAVE TO BUILD THE PLANT.
YOU'RE GONNA HAVE TO BUILD THE PLANT.
THERE'S NOTHING YOU CAN DO ABOUT THE PLANT PER SE.
BUT, UM, THERE'S A NUMBER OF THOSE OTHER PROJECTS THAT ARE IN THE, IN THE LATER YEARS.
SO IN OTHER WORDS, LIKE IF YOU GO BACK TO THE, THE, UM, THE SLIDE BEFORE THIS ONE, THE UTILITY RATE COMPARISON.
NOW THE ONE THAT SHOWED THE NEGATIVE FOR THE $10 INCREASE WITH THE, UH, PROJECTED, I THINK IT WAS THAT WATER USAGE TAB, BUT THEN BACK A SLIDE ON THAT ONE.
IT'S ON, MAYBE YOU CLOSE IT ON ACCIDENT, UH, UNDER I DO UNDER MENU AND THEN DO OPEN, UH, DOWNLOADS.
SO IF YOU GO DOWN TO THE BOTTOM AND LOOK AT THE RED NUMBERS, OKAY? NOW IS THIS ALSO TAKING AN ACCOUNT, US PAYING FOR RESERVATION FEES FOR WATER? THAT'S SOMEWHAT, THAT'S SOMEWHAT REFLECTED IN THE, IN THE, UH, OPERATIONS.
SO YOU SEE THAT IF, IF YOU DID ALL THE PROJECTS IN 24 AND 25, YOU'RE 3 MILLION, 3.1 MILLION SHORT 25 ON EFFECTIVELY.
OKAY? SO IT, NOW IF YOU FLIP BACK TO THE, THE UTILITY BILLS, THE RESIDENTIAL BILLS, AND YOU SCROLL ALL THE WAY DOWN TO THE BOTTOM, YOU'LL SEE A HOW MUCH EACH OF THESE SCENARIOS GENERATE AND DOLLARS FOR WATER
[00:30:01]
WASTEWATER.SO YOUR $10 INCREASE FOR WATER AND WASTEWATER GENERATES ROUGHLY $2.5 MILLION A YEAR.
THAT'S, THAT'S THE FAR RIGHT, YOU KNOW, BOTTOM RIGHT.
SO THAT WOULD TELL YOU YOU WOULD DO A $20 INCREASE THIS YEAR RIGHT NOW AND THEN NEXT YEAR YOU'D BE DOING ANOTHER 20 TO $30 INCREASE NEXT YEAR IN ORDER TO ACCOUNT FOR EVERYTHING WITH RATE PAYERS ONLY THAT ARE, THAT ARE CURRENTLY IN THE REVISED PROPOSED LIST.
THAT'S HOW YOU DO, THAT'S HOW YOU DO THIS EXERCISE.
SO HOW DOES THIS LEVEL WORK? YOU DO 5% INCREASE, YOU STILL RUN OUTTA MONEY 2025 MM-HMM
BUT YOU CAN RAISE RATES AGAIN, I KNOW FOR IS THAT'S A $10 INCREASE IN FOUR YEARS.
WE'RE ONLY 3 MILLION IN THE HOLE AND FOUR YEARS NEED 39 MILLION.
SO WHAT I WANNA KNOW IS HOW MANY ZEROS GO AFTER THAT 10 TO GET US TO BRIDGE THE GAP BETWEEN THE 3 MILLION DEFICIT AND THE $39 MILLION? WELL, BECAUSE THERE'S NO SENSE TO ME IN RAISING SOMEONE'S RATES $10 TODAY.
SO WE MAKE THEM FEEL BETTER KNOWING THAT IN THREE YEARS MM-HMM,
WELL, SO WELL WE OVER SET IT WITH IMPACT OR FEES OR OTHER OR UH, SKY BOX MONEY.
WE'D HAVE TO ALLOCATE IT TO PAY.
YOU CAN UNDERWRITE THIS WITH TAX DOLLARS.
YOU CAN, SOME OF THESE SPREADSHEETS ARE CALCULATED WRONG.
SO THE NUMBERS AREN'T ADDING UP HERE.
WHERE AT, UH, WELL WHICH ONE DO YOU WANT US TO, THE COMBINED ONE, THE 50,000 GALLON CONSUMPTION PERCENTAGE INCREASES ARE ALL WRONG.
AT BOTTOM 50,000 MAKING BECAUSE THAT, THAT'S BARELY 1%.
UH, THE, THE PERCENT, NO, IT'S UP A LITTLE MORE THE, THE GREEN, THE NEXT GREEN BAR OR THERE IT IS THAT ONE 3%.
SO 3% OF $519 AND 20 CENTS IS A LOT MORE THAN 6 42 AND 5% OF $523 IS A LOT MORE THAN 10 68.
THAT'S, THAT'S, THAT'S WHERE I'M TRYING TO FIGURE OUT WHERE THAT CAME FROM.
SO THE CURRENT BILL FOR WATER IS 5 12 78.
RIGHT? SO 3% WOULD BE MORE THAN $15? NO, IT'S JUST 3% ON THE RATE.
BUT IF THE RATE IS 512 78, IT'S NOT 10 PERCENT'S.
SO YOU'RE SAYING THAT SOME OF IT THAT IS A BASE CHARGE AND SOME OF IT'S THE RATE FOR THE WATER, RIGHT? IS THAT THAT'S A BASE CHARGE AND A PER THOUSAND CONSUMPTION FOR THIS IS LIKE FOR 50,000 GALLON CONSUMPTION, A HIGH END USER, THE 6,000 IS YOUR AVERAGE USER.
SO ARE THE BASE CHARGES NOT CHANGING IN THESE ASSUMPTIONS THEN EXCEPT FOR THE DOLLAR INCREASE? ONE THE PERCENT WOULD, UM, AFFECT THE BASE AND THE PER THOUSAND, THE DOLLAR INCREASES WOULD JUST AFFECT YOUR BASE RATES.
WAIT, BUT IF THE PERCENT IS SUPPOSED TO INCREASE THE BASE.
SO WHAT HE'S SAYING IS PER GALLON 50,000 GALLONS, YOU'RE AT 3% INCREASE.
IF YOUR CURRENT BILL AT FIVE 12 GOING TO FIVE 19 IS ONLY $6 DIFFERENCE.
BUT 3% OF 509, UH, $512 SHOULD BE CLOSER TO 25, $30.
SO THAT'S WHAT HE'S SAYING IS THAT THOSE PERCENTAGES, WELL, WE CAN LOOK AT THAT.
EITHER WAY IT'S, AND THEN ON THE SEWER ONLY, THERE WAS A LOT OF THE 6,000 AND THE 50,000 FOR BOTH SEEMED UP.
BUT BACK TO WHAT YOU WERE SAYING THOUGH, LIKE WITH THE FUNDING, SO OBVIOUSLY THIS IS PUTTING EVERYTHING IN THE RATE PAYER CATEGORY, RIGHT? EVERYTHING IN THE RIGHT PAYER CATEGORY.
BUT THERE WITH THE IMPACT FEES THAT WE CAN PROJECT UHHUH ALONG WITH THE LUS WE'RE EXPECTING GOT, THAT'S NOT CHANGING IMPACT FEES.
IT IS NOT, UM, IT'S NOT PUSHING THINGS TO DEVELOPERS.
IT'S NOT PAYING FOR THINGS WITH TURS, IT'S NOT DOING ANYTHING ELSE OTHER THAN MAKING SURE THAT WE CAN COVER ALL OF THE EXPENSE WITH THE RIGHT PAYERS.
AND THE ANSWER IS WE CAN'T FEASIBLY DO THAT.
SO WE CAN'T, COULD WE DO LIKE GENERAL LIKE REVENUE, RIGHT? CANADA? THE ANSWER IS YES, YOU CAN DO A LOT OF DIFFERENT OTHER THINGS.
BUT HOW MUCH YOU KIND OF, YEAH, BUT OKAY, PULL ENTIRE CITY BUDGET WAS WHAT, 30 MILLION THIS YEAR? WELL, YOUR GENERAL, GENERAL FUND PROBABLY 25, WHICH IS SALARIES.
WHAT I'M JUST SAYING WE WERE 25 MILLION.
THIS IS 39 MILLION A YEAR DEFICIT.
AND THAT THIS IS JUST WATER WASTEWATER, WHICH WE STILL HAVE.
I'M NOT TRYING TO SAY I'M FULLY TRYING TO SUPPLEMENT IT.
JUST SAYING LIKE, TO EASE THE BURDEN, RIGHT? I MEAN OBVIOUSLY THE BURDEN'S JUST KIND OF SWITCHED, RIGHT? MEAN WHERE IT IS YOU'RE STILL PAYING, THE TAXPAYER'S STILL PAYING FOR IT.
THE NEXT SLIDE, WHEN HE TELLS US WHAT IT'S GONNA COST TO BUILD ALL THE ROADS WE WANT TO BUILD, THEN YOU'RE NOT EVEN STOMACH INCREASE WATER.
LET'S, LET'S DO THIS ONE FIRST AND I CAN DO THE SAME THING IN WATER.
SO, SO THIS IS THE, AND I KNOW WE'RE, YOU KNOW, PRESSED ON TIME, BUT YOU KNOW, THIS IS IMPORTANT STUFF TAKES A WHILE TO, TO COVER ALL THIS.
SO THIS IS BASICALLY SHOWING YOU WHERE
[00:35:01]
THE, THE CLUSTER OF THE, OF THE BIGGEST PROJECTS ARE EFFECTIVELY AT AND WHERE THE, UH, EFFECTUAL, UH, EFFECTIVE CONSTRAINTS ARE IN THE SYSTEM.AND YOU CAN LOOK UP HERE AND GENERALLY SAY, OKAY, WELL, UH, MATT WENT THROUGH AND PRIORITIZED 'EM IN LIKE MOST CRITICAL FORMAT.
I BELIEVE THAT'S WHAT THE ONE THROUGH SIXES MEAN.
IS THAT ACCURATE OR NO? ANYTHING? NO, THAT WAS NOT A, IT'S NOT, IT'S NOT A PRIORITY.
SO YOU CAN TAKE A LOOK UP HERE AND YOU KNOW, YOU GOTTA DO FIVE AND FOUR COULD IN THEORY BE PAID FOR WITH, WITH TURS, RIGHT? YOU COULD ISSUE DEBT OUT OF THE TAX INCREMENT ZONE AND THEN USE THE GROWTH OVER MEGA SITE OR USE THE LAND SALES, UH, OVER THERE TO PAY FOR THOSE PROJECTS.
UM, MAYBE YOU'RE LIKE, HEY, NUMBER ONE OVER HERE, ENCLAVE LIFT STATION.
UM, MATT'S RECOMMENDATION WAS TO DO A, UH, TEMPORARY FIX TO INCREASE THE CAPACITY BY IMPROVING THE PUMPS THAT ARE, THAT ARE IN THE, UH, LIFT STATION AND SOME OTHER HYDRAULIC THINGS THAT DOESN'T GET YOU THE FULL SOLUTION, BUT IT BUYS YOU 3, 4, 5 YEARS OF TIME, RIGHT? WHICH IS WHAT YOU'RE ACTUALLY AFTER.
THESE ARE THE TYPES OF THINGS THAT, THAT WE CAN DO TO WHERE IF WE PULL OUT ALL THE MEGASITE PROJECTS AND PUT THEM WITH A DIFFERENT FUNDING SOURCE, IF WE SAY GLENWOOD INTERCEPTOR, UH, SOUTHWEST WATER PLANT HAS TO GO, THEY HAVE TO GO RIGHT NOW ENCLAVE, WE DIAL DOWN THE PLAN OVER THERE AND GO WITH LIKE A TEMPORARY UH, DEAL.
UH, NUMBER THREE, SORRY, DEVELOPMENT WORLD.
YOU GOTTA PAY FOR ALL THAT YOURSELF.
AND THEN NOW YOU HAVE A VERY DIFFERENT LIST OF, I'M NOT SAYING THAT'S WHAT YOU DO, BUT I'M SAYING THAT'S AN EXAMPLE.
YOU HAVE A VERY DIFFERENT LIST OF PROJECTS AND AMOUNT OF MONIES THAT WE NEED TO SPEND ON, ON, UH, ON WASTEWATER WATER IS THE SAME.
IF YOU LOOK AT THE, THE MAP FOR THE WATER, IT'S ALSO KIND OF SOMEWHAT COLOR CODED IN THEIR, IN, THEY'RE INTERRELATED.
YOU HAVE THE FRAME SWITCH PUMP STATION, WHICH ABSOLUTELY HAS TO GO.
THE ONE THING THAT I'M NOT EXACTLY SURE IS ONE OF THE FIRM CAPACITIES, 20 MGD UM, MAPS, CHASING THAT DOWN TO KIND OF HELP ME GET TO AN ANSWER ON THAT.
BUT, UM, EITHER WAY, YOU KNOW, YOU'RE GOING TO HAVE AT MINIMUM, UH, FIVE TO 10 MGD CAPACITY GOING THROUGH PUMP STATION, UH, AT FRAME SWITCH ONE WAY OR THE OTHER.
SO THAT'S, THAT'S ONE PROJECT.
AND THEN YOU SEE THESE OTHERS OVER HERE THAT ARE DESCRIBED AS TO WHAT'S INCLUDED IN THEM AND EFFECTIVELY WHAT THEY DO AND WHY.
AND THERE MAY BE AREAS UP HERE TOO WHERE WE GO RIGHT BACK TO WELL, UH, YOU KNOW, UH, A MEGA SITE.
WE PULL THOSE OUT, PUT 'EM OVER IN THE TIRES, WE PAY FOR THOSE WITH DEBT.
UM, YOU KNOW, THE COTTONWOOD ELEVATED STORAGE AND, AND THOSE THINGS.
WE, WE NEED TO DO THAT RIGHT NOW.
SO LET'S MAKE SURE WE HAVE THAT SCHEDULE.
THAT'S THE SORT OF STUFF THAT EFFECTIVELY WE'RE GONNA NEED TO DO, I THINK TO BE ABLE TO PARE DOWN THE, THE EXPOSURE OF HOW MUCH WE NEED TO PAY FOR IN A SHORT PERIOD OF TIME.
WELL THAT NEW SERVICE EXTENSION'S DOWN THE BOTTOM OF RED THAT WE KNOW THAT, UM, COMPANIES ARE WANTING TO DO THEIR OWN.
UH, THEY'RE FUD, RIGHT? NOT A, NOT A KID.
THEY DON'T WANNA BE IN THE CITY.
THEY WANNA, THEY'RE GOOD MUDS MUDS, RIGHT? SO LET THEM PAY FOR IT IN MUDS OUT THERE.
WELL SOME OF THAT IS ACCOUNTED FOR.
UM, I THINK THE RED ONES ARE SOMEWHAT CONSIDERED TO BE PAID FOR WITH, UH, WITH DEVELOPER CONTRIBUTIONS.
WELL, SO YEAH, SO THE UPPER KIND OF SQUIGGLY RED LINE HERE, LEMME, SO THIS UPPER RED LINE THAT IS ALREADY IN OUR CIP AND YOU SEE THAT THERE'S UM, I CAN GO AND SHOW YOU.
UM, AND SO THAT IS, THAT'S WATER HERE.
WHERE IS THAT? 1660? THAT RIGHT HERE.
BUT YOU CAN SEE WE ARE STILL ON THE HOOK FOR A MILLION DOLLARS EVEN THOUGH THE DEVELOPER'S DESIGNING IT AND BUILDING IT AND THEY'RE PAYING THEIR, THEIR FAIR SHARE, THE CITY'S STILL ON THE HOOK FOR THAT.
THE REST OF THESE ARE NOT, AT LEAST TO MY KNOWLEDGE, ARE NOT HAPPENING YET.
AND SO THOSE ALL NEED TO BE DONE.
BUT WE CAN PUSH ALL OF THOSE TO DEVELOPERS IF THAT'S WHAT YOU GUYS YES.
AND THEN HERE, THE MEGA SITE STUFF, THAT'S ANOTHER ONE THAT JAMES WAS TALKING ABOUT.
WE CAN PUSH ALL OF THAT, HAVE THE DEVELOPERS CONSTRUCT ALL THAT OR PUT THAT OFF ONTO A TURS OR SOME OTHER MECHANISM.
WE KEEP SAYING TUR, BUT MY UNDERSTANDING IS YOU HAVE TO HAVE SOMETHING YOU CAN TAX BEFORE YOU CAN HAVE A CHARGE.
WELL, AND SO YOU CAN'T JUST GO OUT, CORRECT ME IF I'M WRONG, YOU CAN'T JUST GRAB AN ISSUE 50 MILLION IN BONDS.
NO, YOU CAN, BUT YOU HAVE TO UNDERWRITE THEM WITH YOUR OWN, YOUR OWN PROPERTY TAX.
SO, SO THE CITY HAS TO GUARANTEE THEM, RIGHT? AND SO THAT, SO THEN OUR PROPERTY TAXES WOULD GO UP.
TO PAY FOR THAT UNTIL THE VALUE'S THERE TO ABLE TO COVER THE COST AND THEN BUY
[00:40:01]
IT BACK DOWN.'CAUSE WHEN WE'RE MOVING LEVERS AROUND, YOU CAN MOVE THIS LEVER ALL YOU WANT, BUT IF EVERYBODY'S TAXES STILL GO UP, YOU CAN CALL IT WHATEVER YOU WANT.
BUT MORE MONEY OUT OF POCKETS, MORE MONEY OUT OF POCKET.
UM, AND WE CAN ALSO SAY WE'RE GONNA DO SHIP MORE TO DEVELOPERS, BUT WE DON'T HAVE A REAL GOOD TRACK RECORD OF MAKING DEVELOPERS PAY.
THEY COME IN AND THEN THEY TELL US HOW BAD EVERYTHING IS AND WE GIVE 'EM GRANTS AND 10 YEARS OF MONEY.
AND SO, I MEAN, HOW MANY TIMES HAVE I BEEN FIGHTING? I FIGHT WITH PEOPLE THAT I'M LIKE, I'M DONE GIVING MONEY AWAY SO YOU CAN INCREASE OUR COSTS, BUT IF WE DON'T COME TOGETHER ON SOME KIND OF PLAN AND WE JUST GIVE IT ALL BACK IN TAX REBATES, YOU'RE JUST TAXING PEOPLE MORE TO, YOU'RE JUST BUILDING TO BUILD.
I MEAN ALL, ALL I SEE IS AT SOME POINT WE GOTTA COME TO TELL PEOPLE YOUR RATE'S GOING UP.
'CAUSE YOU CAN TAKE A MILLION OUT HERE AND 3 MILLION OUT THERE, BUT YOU STILL, YOU STILL HAVE $39 MILLION IN FOUR YEARS.
AND IF YOU PUSH IT OUT, ALL YOU'RE DOING IS PUSHING OUT MORE RATING LEASES.
WELL IT, IT IS 39 MILLION BASED OFF OF THE FIRST REVISION OF MOVING PROJECTS OUT OR LATER.
THAT'S, THAT'S NOT THE END ALL END ALL.
JUST LATER THEY GET MORE EXPENSIVE TO BUILD.
THEY DO A YEAR RATE INCREASES ARE NOW IN 20 26, 20 27, 20 28.
SO, SO WHAT I'M SAYING IS MORE PLAYERS ON THE SYSTEM, IT'S ALL FACTOR IN THERE.
BUT IF YOU MOVE IT OUT OF THE FIVE YEAR WINDOW INTO YOUR 6, 7, 8, 9, 10, 11, 12, WHAT I'M SAYING IS, IS THAT THE, THE CITY GOT HANDED A PLAYBOOK OF HERE, IF YOU HAD THE IDEAL WATER AND WASTEWATER SYSTEM, HERE'S WHAT IT WOULD LOOK LIKE.
AND OH BY THE WAY, GO BUILD IT IN FIVE YEARS.
WE DO HAVE A NUMBER OF PROJECTS THAT HAVE TO GET DONE BECAUSE NOTHING GOT DONE BASICALLY AFTER 17 OR 18 ON.
SO A NUMBER OF THESE PROJECTS, UNFORTUNATELY WE'RE SADDLED WITH AND WE ACTUALLY HAVE TO FIGURE OUT A WAY TO DO.
BUT THERE IS PLENTY OF THESE PROJECTS THAT WE ABSOLUTELY DON'T HAVE TO DO.
AND I THINK THAT'S WHERE WE'RE AT IS WE HAVE TO DECIDE WHAT WE ACTUALLY HAVE TO DO.
TCEQ REQUIREMENT, UH, SYSTEM OPERATION FAILURES, YOU KNOW, THOSE TYPES OF THINGS THAT YOU GOTTA DO TO PREVENT THOSE THINGS FROM HAPPENING.
AND THAT NEEDS TO BE OUR LIST.
AND THEN MEGASITE NEEDS TO PAY FOR ITS OWN WAY, YOU KNOW, AND THOSE SORTS OF THINGS.
AND YOU START CARVING THOSE THINGS OUT AND YOU START, YOU START BRINGING DOWN THE AMOUNT OF DEBT THAT WE HAVE TO ISSUE LONG TERM OVER THAT FIVE YEAR WINDOW.
YOU'RE NOT GONNA HELP 24 MUCH.
YOU CAN HELP 24 A LITTLE BIT, BUT NOT MUCH.
IT'S 25, 26, 27, 28 THAT I'M TRYING TO GET THOSE NUMBERS DOWN TO WHAT THEY ABSOLUTELY HAVE TO BE.
AND THEN WE HAVE TO DECIDE AND THEN ALSO IMPACT FEES.
AND I KNOW MAYOR, YOU'RE EXACTLY RIGHT, YOU CAN'T JUST SET IMPACT FEES TO WHATEVER, BUT IMPACT FEES SHOULD BE BASED OFF OF WHAT YOUR ACTUAL COST OF PROJECTS ARE.
AND THESE PROJECTS ARE NOT ACCOUNTED FOR IN OUR CURRENT IMPACT FEE CALCULATIONS.
SO YOU OUGHT TO RESET AND THEN COUNSEL CAN DETERMINE DO WE WANT TO COLLECT 50% OF WHATEVER THAT NUMBER IS OR 80% OF WHATEVER THAT NUMBER IS, OR A HUNDRED PERCENT OF WHATEVER THAT NUMBER IS.
THAT WAY Y'ALL AT LEAST KNOW EVERY LUE OF CAPACITY IS COSTING WHATEVER, $20,000.
AND THEN WE'RE GONNA ASK DEVELOPMENT TO CONTRIBUTE 10 OR WHATEVER.
MATT, DID YOU GET ANY FEEDBACK FROM THE LAST MEETING ON WHAT WE COULD CUT BACK AND TAKE OFF? I KNOW YOU SAID THE PRESENTATION RIGHT AFTERWARDS FROM, FROM YOU GUYS ANYMORE.
IT'S BECAUSE THE TEMPERATURE IS WARM BECAUSE THE DRINKS GOT RESTOCK.
THAT'S WHY I'M SPEAKING, I'M NEED A SPECIAL MEETING BECAUSE WHAT I'M FEELING LIKE IS 45 MINUTE PRESENTATION, YOU GUYS GO OUTSIDE AND TALK IT OVER BETWEEN YOURSELVES ON THE D AND FIGURE THIS OUT.
AND WE'RE GONNA HAVE TO HAVE, WE'RE, WE'RE WORKING, WE'RE TRYING TO EDUCATE YOU AND GET YOU COMFORTABLE WITH LIKE WHERE WE'RE AT, WHAT THE NUMBERS ARE, WHAT THE SITUATION IS, IS DEVELOPING.
AND THEN WE'RE GONNA HAVE TO HAVE A A EITHER AN ITEM ON AN AGENDA THAT'S A LIGHT AGENDA OR A SPECIAL MEETING THAT'S DEDICATED JUST TO THIS WHERE Y'ALL ACTUALLY DO MAKE DECISIONS.
BUT I DON'T, ONE LAST MEETING, LAST WORKSHOP, HE LAID OUT ALL THE PROJECTS WHERE AT NOW THIS ONE IS NUMBERS DRIVEN.
THE RESPONSE EMAIL ABOUT WHAT YOU THOUGHT, THE PROJECTS YOU THOUGHT THAT COULD BE REMOVED OR TAKEN OUT OR PUSHED BACK.
THAT WAS THE POINT OF ANYTHING I HEARD ABOUT YOU, BUT I'M NOT A CIVIL ENGINEER THAT'S SAYING THIS IS WHAT WE ABSOLUTELY HAVE TO DO.
AND THOSE NEW NUMBERS, THEY HAVEN'T, WE'VE GIVEN THEM DIRECTION THEY'D LIKE TO COME BACK FROM THERE.
BUT NO, I DO THINK, YOU KNOW, IT MAY BE THE MARCH STRATEGIC PLAN, BUT WE'RE GONNA HAVE TO HAVE A MEETING WHERE WE DECIDE THIS AND IF IT'S GONNA TAKE ACTION THEN IT PROBABLY NEEDS TO BE A SPECIAL MEETING ON A THURSDAY.
IT'S NOT COUNSELED, IT'S JUST COMING IN FOR THIS BECAUSE WE STILL GOT ROADS AND I, I DON'T ARTICULATE THINGS REAL WELL,
[00:45:01]
BUT I MEAN I'VE BEEN DRIVING ABOUT THIS.I WAS LATE HERE BECAUSE I WAS SITTING IN A SUPER LONG TIME.
EVERYTHING, I'M LIKE MONEY, MONEY, MONEY, MONEY.
AND NOW IT'S STARTING TO COME TO FRUITION.
AND WHEN YOU GET TO US ON THE ROAD PARK, WE AIN'T SEEN PROBLEMS UNTIL WE'VE SEEN ROADS BECAUSE THAT'S DIRECTLY TO THE PROPERTY TAX.
WE'RE TALKING A $90 MILLION BRIDGE HERE, A $10 MILLION WHITING HERE AND $18 MILLION HERE.
I MEAN, SO I DO HAVE ONE, ONE THING TO THROW OUT TO TO STUFF, YOU KNOW, AND I GET, I'M VERY COGNIZANT OF PEOPLE THAT LIVE HERE.
I'M JUST, I'M JUST THROWING OUT AS A THOUGHT WHEN WE LOOK AT LIKE ROUND ROCK, GEORGETOWN OR SOME OF THESE OTHERS AND WE LOOK AT THEIR TAX RATE AND WE'RE TRYING TO SAY EQUIVALENCY IF A LOT OF THEM, IF THEY NEIGHBORHOODS ARE IN MUDS WHERE THEIR TAX OR IN A PIT WHERE THEY HAVE A PIT ASSESSMENT THAT'S ON TOP OF THEIR TAX RATE.
I DON'T KNOW THAT WE, AND I KNOW WE HAVE SOME IN OUR CITY THAT ARE ALSO PIS AND STUFF TOO, BUT I'M WONDERING, HAVE WE EVER LOOKED AT WHAT, WHEN WE'RE LOOKING AT WHAT WE CAN DO AND WHAT CAN BE EXPECTED, ARE WE LOOKING AT IT AS AN OVERALL RATE, INCLUDING THE PIS COMING IN? SO YOU CAN SAY THIS IS WHAT YOUR CITIZENS ARE PAYING OVERALL.
LIKE IS THE AVERAGE PERSON AT $3 PER UNDER EVALUATION? WHEN YOU LOOK AT CITY, UM, SCHOOL, THE, YOU KNOW, THE HOME BUILDERS THAT, THAT I'VE SPOKEN TO HAVE HAD TOLD ME, AND IT'S BEEN PRETTY, IT IS PRETTY, PRETTY CLOSE TO THE SAME ANSWER FOR THE LAST 10 YEARS, IS THAT THE, THE TOLERANCE OF THE MARKET FOR THE COMBINED RATE RATE IS ABOUT $3 AND 5 CENTS.
THE $3 AND 15 CENTS, THAT'S THE TOLERANCE FOR THE MARKET FOR THE COMBINED RATE.
BUT THAT NUMBER HASN'T CHANGED MUCH THAN 10 YEARS.
SO IF IT'S STILL THE NUMBER, THEN THAT'S WHAT YOUR, THAT'S WHAT YOUR COMBINED RATE.
AND THAT INCLUDES IF YOU'RE IN A MUD, IF YOU'RE NOT SO ON AND SO FORTH.
SO THEN YOU GET INTO THE LIKE, LIKE THE RATES, YOU KNOW, THE WATER RATES, THE WASTEWATER RATES, ALBERTA WENT AHEAD AND UH, WENT AHEAD AND PULLED THE OTHER CITIES AROUND US AND WHAT THEIR BASE RATES ARE, WHAT THEIR COST PER THOUSANDS ARE.
SO Y'ALL CAN HAVE THAT INFORMATION.
WHAT YOU'LL SEE IS GEORGETOWN AND ROUND ROCK ARE RELATIVELY CHEAPER THAN US AND TAYLOR AND PFLUGERVILLE ARE RELATIVELY MORE EXPENSIVE THAN US.
UM, THAT, THAT'S ABOUT THE WAY THAT, THAT IT BROKE DOWN.
SO IT IS, IT, IT, IT, IT CERTAINLY MATTERS IN THE GRAND SCHEME OF THINGS.
AND I THINK, YOU KNOW, TO THE MAYOR'S POINT, IT'S LIKE, WELL EVERY DOLLAR, NO MATTER WHERE IT COMES FROM, IS STILL COMING FROM THE SAME POCKET.
SO IT DOESN'T MATTER IF IT'S TAXES OR RATES OR WHATEVER ELSE, BUT WHENEVER YOU START TRYING TO TALK ABOUT COMPARISONS TO OTHER CITIES THAT I KNOW THAT'S IMPORTANT AND I KNOW IT'S, IT'S UH, IT'S SOMETHING THAT EASY FOR PEOPLE TO UNDERSTAND, BUT EACH SYSTEM IS UNIQUE AND DIFFERENT.
YOU KNOW, IT, PFLUGERVILLE HAS A LAKE, WE DON'T HAVE A LAKE, YOU KNOW, SO IT'S NOT COMPARING NECESSARILY APPLES TO APPLES.
WE KNOW WHAT IT COST TO OPERATE, WE KNOW WHAT THE COST OF THE RAW MATERIALS ARE WATER IN THIS CASE.
AND WE KNOW WHAT INFRASTRUCTURE WE NEED IN ORDER TO BUILD ABLE TO PROVIDE THE SERVICE.
SO WE EITHER HAVE TO DECIDE HOW DO WE WANNA PAY FOR IT AND IF SO, HOW? AND IF WE DON'T WANT TO PAY FOR IT, THEN WE DON'T BUILD IT.
THAT'S BASICALLY WHAT IT PULLS DOWN TO.
WE DON'T WANNA PAY FOR IT, WE'RE PAYING FOR IT 'CAUSE IT'S TOO LATE.
YOU GOT $180 MILLION PLANT THAT'S UNDER CONSTRUCTION.
WE CAN'T JUST, WE HAVEN'T, WE HAVEN'T AWARDED THE CONTRACT TO GO BUILD THE, YOU'VE ALREADY GUARANTEED PEOPLE THE ABILITY TO GET THINGS RIGHT THAT WE CAN'T ALL OF A SUDDEN SAY WE
I MEAN YOU LOOK, I MEAN THAT'S MORE OF A LEGAL QUESTION, BUT I THINK YOU COULD SAY, LOOK, WE'RE DOING A MORATORIUM NO MORE WATER, WASTE WATER.
I I I WOULDN'T RECOMMEND IT BECAUSE IT'S USUALLY A, A DEATH STRUGGLE FOR CITIES, PARTICULARLY IN HIGH GROWTH AREAS.
'CAUSE PEOPLE WILL JUST QUIT TALKING TO YOU AND THEY'LL TALK TO EVERYBODY AROUND YOU AND THEN THEY'LL KEEP, YOU KNOW, MOVING FORWARD WITH ENTITLEMENTS JUST LIKE THEY WOULD HAVE HERE BECAUSE THEIR PROJECTS THEY'RE TALKING ABOUT TO US TODAY, THEY'RE NOT GONNA TURN THE SWITCH ON FOR TWO OR THREE YEARS ANYWAY.
SO MORATORIUM, POTENTIALLY NO INCREASE ON PEOPLE'S RATES.
IF YOU WANT TO KEEP GROWING FIVE YEARS, WE DON'T MAKE CHANGES.
WE HAVE A
IT JUST REDUCES THE AMOUNT OF DEBT THAT YOU HAVE TO, 'CAUSE YOU STILL HAVE THE CONTRACTS FOR THE WATER SUPPLIES, RIGHT? YOU STILL, YOU STILL, IF YOU'RE TELLING ME PERSONALLY, IF YOU'RE TELLING ME IN ORDER TO KEEP GROWING AND DON'T USE MORE, WE'RE GETTING READY TO PLAN AND REALLY JACK UP PEOPLE'S RATES.
SOMETHING TELLS YOU IF YOU HOLD PEOPLE AND SAID YOU WANT GROWTH AND IF YOU HAVE GROWTH, YOUR WATER BILL IS DOING THIS.
I BET MOST PEOPLE ARE GONNA SAY, WHY DON'T YOU GUYS CHILL IT OUT, SLOW IT DOWN, DO STOP BUILDING HOUSES, STOP BUILDING STUFF FOR A FEW YEARS.
I DOUBT VERY MANY PEOPLE WOULD SAY, I'M OKAY WITH A $20, $30, $40 INCREASE JUST SO WE CAN HAVE MORE HOMES BUILT IN OUR CITY.
ALL YOU DO IS GET FURTHER BEHIND.
WHEN YOU EXPLAIN IT YOUR WAY, WHICH IS COMPLETELY UNEDUCATED, YOU'RE GONNA SCARE PEOPLE AND PEOPLE ARE GONNA FREAK OUT.
PEOPLE JUST PAY THEIR BILL BECAUSE THAT'S WHAT DO, RIGHT? THAT IS NOT AN EDUCATED THING.
[00:50:01]
YOU NEED TO LISTEN TO THE PROFESS, HOLD ON.WE NEED TO LISTEN TO THE PROFESSIONALS.
WE NEED TO LISTEN TO THE PEOPLE WHO ACTUALLY KNOW WHAT THEY'RE DOING, KNOW WHAT THEY'RE TALKING ABOUT.
NOT MAKE SNAP JUDGEMENTS, COME OUT OF THIS MEETING AND START PUT POST ON FACEBOOK TO SCARE PEOPLE OF WHAT'S GONNA HAPPEN.
I THINK WE NEED TO BE PATIENT AND I THINK WE NEED TO LISTEN THROUGH THIS.
WE NEED TO HAVE MORE MEETINGS.
JUST LIKE THEY'RE SAYING WE'RE STARTING THE PROCESS HERE.
IT'S NOT TIME TO FREAK OUT, IT'S TIME TO, TO EDUCATE OURSELVES, EDUCATE EACH OTHER, GET EDUCATED, GIVE THEM FEEDBACK ON WHAT WE THINK WE REALLY NEED TO DO AND NOT MAKE THE RIGHT DECISIONS.
WE'VE GOTTA MAKE THE RIGHT, LEMME ASK YOU A QUESTION.
IN NOVEMBER OF 21, OH GOD NO MORE.
21, WE HAD A PRESENTATION BY STAFF THAT WE WERE ABLE TO REDUCE THE, THE RATE OF WATER BECAUSE PROJECTIONS SHOW ALL THIS STUFF.
SO WE REDUCED WATER ONLY TO FIND OUT TWO YEARS LATER, TERRIBLE DECISION.
WE PROBABLY SHOULDN'T HAVE REDUCED WATER.
'CAUSE NOW WE NEED ALL THAT MONEY.
AND WE'VE BEEN TALKING ABOUT THIS SINCE JULY.
WE'VE BEEN TALKING ABOUT WATER RATES ARE GOING UP AND YOU ALL KEEP TELLING ME I'M SCARING PEOPLE.
RATES AREN'T GOING UP AS BAD AS YOU THINK.
I THINK WE CAN SAY THAT PEOPLE IN CHARGE OF 2021 DID NOT MAKE THE BEST DECISIONS AT ALL.
SO WE SHOULD NOT SITTING FAIR JUDGMENT SITTING NOW WE'RE SITTING HERE TRYING TO FIGURE OUT THERE'S A $39 MILLION HOLE IN FOUR YEARS.
HOW DO WE CUT ENOUGH STUFF OUT TO WHERE THE DEBT SERVICE IS MANAGEABLE? AND WE DON'T KNOW EXACTLY WHAT WE'RE GONNA INCREASE.
'CAUSE AT $10 A MONTH, WE'RE OUT OF MONEY NEXT YEAR.
IF WE GO TO 20, WE HAVE MONEY NEXT YEAR, WE'RE OUT THE NEXT YEAR.
SO I'M JUST SAYING WE COULD BE PATIENT.
YOU AND I HAVE BEEN ON COUNCIL FOR FOUR YEARS AND FOR FOUR YEARS WE'VE BEEN TALKING ABOUT WATER ISSUES AND WASTEWATER ISSUES FOR FOUR YEARS.
HOW MANY CITY MANAGERS HAVE WE GONE THROUGH IT? MAKE ALL EXCUSES YOU WANT.
THE COUNCIL HAS BEEN A HUGE EXCUSE AND A AND A GOOD, THE COUNCIL'S BEEN TO COUNCIL AND WE'VE BEEN PATIENT.
THIS IS THE SAME COUNCIL 18 MONTHS.
AND WE'RE TALKING ABOUT TALKING ABOUT THIS IN A MEETING ON MARCH, WHICH IS ANOTHER TWO MONTHS.
AND WE TALKED AND JAMES AND I I IN AUGUST, I WAS LIKE, WHY DON'T WE GO AHEAD AND RAISE RATES FIVE OR $10 A MONTH NOW BECAUSE WE KNOW IT'S COMING.
THE SOONER WE DO IT, THE THE LESS IT IS.
AND HERE WE ARE FIVE MONTHS LATER, LET'S TALK MORE ABOUT IT.
WE CAN KEEP TALKING, BUT AT SOME POINT I HAVE NO PROBLEM.
I KNOW RATES ARE GOING UP DRAMATICALLY.
UH, I DON'T HAVE TO BE A MATHEMATICIAN.
WE CAN LOOK AT $30 MILLION GRANTS OF 5 MILLION HERE.
BUT AT THE END OF THE DAY, WE AS A GROUP ARE GONNA HAVE TO WALK OUT ONE DAY AND EXPLAIN TO PEOPLE WHY THE RATES POPPED 80 A MONTH UNDER THE MONTH ONE POINT, WHATEVER IT IS.
SO WE TALKED ABOUT ONE LEVER TONIGHT.
THERE'S PROBABLY A DOZEN LEVERS THAT WE COULD PULL AND PUSH AND, AND
NO MATTER WHAT LEVER YOU PUSH, YOU EITHER CHARGING 'EM FOR WASTEWATER WATER TAXES.
IT IS ALL YOU, YOU'RE CHARGING THE SAME PERSON.
BUT EVERYTHING IS COMING OUTTA SOMEONE'S POCKET.
SO I'M GONNA SAY THE COUNCIL IN 2021 DIDN'T MAKE THE RIGHT DECISION.
WE DIDN'T MAKE THE WRONG DECISION.
WE DIDN'T MAKE THE RIGHT DECISION.
THAT DID IT DECREASED 2021 BECAUSE I DIDN'T EVEN NOTICE IT AS A, A UTILITY BILL PAYER.
I WAS JUST LIKE, I'M ALWAYS LIKE AVERAGE ONE 50 WITH THE TRASH AND EVERYTHING.
I'M JUST LIKE, I DIDN'T NOTICE ANY DIFFERENCE.
THAT'S 'CAUSE IT'S LIKE A 20% 20 NOT ON THE BASE.
I MEAN WHAT, WHAT, WHETHER IT WAS 20% OR NOT, YOU KNOW, I DIDN'T SEE THE IMPACT GO DOWN LOW AVERAGE HOMEOWNER NOTICE IF THE MAYOR WASN'T POSTING THAT YOUR BILL IS ABOUT TO DRAMATICALLY INCREASE, WOULD THAT, I MEAN IF WE KEEP IT DOWN TO THE BASICS OF LIFE, YOU PAY FOR THINGS, RIGHT? YOU WANNA MAKE SURE YOU HAVE YOUR ROOF OVER YOUR HEAD, YOU GOT YOUR WATER FLOWING, YOU'VE GOT POWER.
SO YOU MAKE SURE THAT THOSE BILLS ARE PAID FIRST.
RIGHT? AND THEN FROM THERE YOU GOTTA BUDGET YOUR LIFE.
SO IF IT GOES UP 20 BUCKS, YOU PAY.
I'M OKAY 'CAUSE I HAVE WATER AND I CAN FLUSH MY TOILET HAPPENING BECAUSE IT'S A NECESSITY FOR MY FAMILY.
WE STILL RUN OUTTA MONEY NEXT YEAR.
WE STILL RUN OUTTA MONEY IF WE DON'T DO ANYTHING.
I'M JUST TRYING TO KEEP IT, WE JUST AT THE STARTING LINE OF TALKING, YOU JUST TOLD US THE NEXT TWO YEARS YOU REALLY CAN'T CHANGE IT IN THE NEXT TWO YEARS.
WELL, BUT YOU COULD INCREASE IMPACT FEES.
YOU COULD, YOU COULD RAISE THE DEBT RATE, THE PROPERTY TAX TO PAY FOR, HOLD ON.
YOU CAN'T RAISE THE DEBT RATE 'CAUSE THEY JUST SAID IT DOESN'T ALWAYS COME OUT OF POCKET.
SAY HOW DO YOU DO IT WITHOUT TAKING MORE MONEY OUT OF POCKET IMPACT FEES? WELL IT, IT'S, IT'S MORE MONEY IMPACT FEE.
WELL IT STILL COMES OUT OF POCKET, BUT IT COMES OUT OF DEVELOPMENT POCKET.
OR IF OUR TAX REVENUE HAS BEEN GROWING AND IF WE MAINTAIN THE REST OF OUR BUDGET AT THE CURRENT SPENDING LEVEL AND YOU HAVE INCREASE OF MONEY, THAT'S TOO, INSTEAD OF REDUCING DOWN TO NO NEW REVENUE, BUT YOU STAY AT YOUR RATE NUMBER, THEN YOU TURN AROUND AND SAY EVERY YEAR.
I MEAN THAT'S WHAT I'M SAYING.
IF YOU DIDN'T DO THAT FOR A YEAR AND THEN INSTEAD YOU APPLIED THAT EXTRA REVENUE THAT
[00:55:01]
CAME IN FOR THE NEW HAS BEEN HUGE TOO.YOU KNOW, THAT BUYS DOWN, THAT BUYS DOWN YOUR PROPERTY TAX RATE.
YOU TURN AROUND AND, AND APPLY THAT TO THE WATER DEBT.
THAT WOULD PROBABLY GET YOU ONE MORE.
SO I, I KNOW WE'RE PAST SEVEN O'CLOCK SO WE NEED TO GET DOWNSTAIRS.
BUT WHAT I WOULD SAY IS, IS THAT, SO THIS, ALL THIS INFORMATION'S BEEN PREPARED, WE'LL GO BACK AND RECHECK THE, THE MATH ON THE TABLE.
UM, BUT ALL THIS IS IN THE, IN THE COUNCIL FOLDERS FOR YOU TO PERUSE, FOR YOU TO LOOK AT, FOR YOU TO USE TO EDUCATE YOURSELF.
THEN WE'LL GO, I'D LIKE TO SEE THE, WHAT I WANT TO SEE FROM STAFF.
THE MOST, WHAT WE ABSOLUTELY HAVE TO DO BARE BONES MOST A STEER OPTION AND WHAT THAT NUMBER IS.
FROM WE GO WITH WHAT ABSOLUTELY HAS TO BE DONE FROM PCEQ FOR WHATEVER AND PUSH EVERYTHING OUT AS MUCH AS WE CAN TO DEVELOP OR WHATEVER AND SEE WHERE WE'RE AT FOR THAT NUMBER.
AND WE SET THE RATE FOR THE TAXPAYERS FOR THE WATER RATES IMMEDIATELY TO THAT NUMBER.
THEN WE LOOK AT WHAT ELSE WE CAN DO AND ADD BACK GOING FORWARD.
BUT AT LEAST THAT WAY WE'VE COVERED OUR MINIMUM ASK, SO TO SPEAK.
AND THEN WE CAN MOVE FORWARD FROM THERE.
JUST LIKE YOU SAY, WHAT WHAT'S THE MINIMUM WE HAVE TO DO? YEAH, THAT'S WHY I WAS SAYING IN AUGUST, WE NEED TO LET GET, LET'S GET, I WANT I SEE.
I LIKE, I DON'T, I DON'T UNDERSTAND WHY Y'ALL CAN'T GIVE US THE MINIMUM REQUIREMENT.
YOU KNOW WHAT THAT IS FOR TCQ.
WELL AND THEN SAY, WELL THAT SHORTSIGHTED, HE'S LOOKING BECAUSE WE'RE ALREADY PAST 25.
HE'S LOOKING FOR 26, 27 AND 28.
BECAUSE THOSE TWO YEARS ARE ALREADY SET.
SO WE REALLY DON'T HAVE A THAT ASK CLARK BECAUSE WE'RE BEING ASKED, NONE OF US HAVE ANY ENGINEERING EXPERIENCE.
WE'RE BEING ASKED TO LOOK AT A CIP LIST AND GO SCRATCH T 12.
NO, THAT'S NOT WHAT I'M ASKING YOU TO DO.
WHAT I'M ASKING YOU TO DO THIS LIKE ON MY END, FAIR ENOUGH.
I I WANT PROFESSIONAL PEOPLE WITH 20, 30 YEARS OF EXPERIENCE IN MANAGEMENT GOING, LOOK GUYS, HERE IS THE ORDER OF PROJECTS FROM WHAT YOU HAVE TO DO TO NOT BREAK THE LAW AND GO TO JAIL TO WHAT YOU DON'T HAVE TO DO.
THAT'S, THAT'S LAID OUT IN THE CY NICKELS AND GARBER THING, RIGHT? NO, THAT DOES NOT.
THAT'S THAT'S THE TIMEFRAMES THAT WE HAVE TO DO IT.
THAT'S THAT'S EFFECTIVELY WHAT WE'VE PROVIDED YOU IS THE LIST OF THINGS THAT WE ABSOLUTELY NEED TO GET DONE.
BUT WE DON'T HAVE TO DO IT ALL IN FIVE YEARS.
SO GIMME THAT'S WHAT I'M TRYING TO GET Y'ALL TO.
THAT'S SOMEONE GIMME A 10 YEAR HORIZON THEN THAT'S BASICALLY WHAT IT IS WITH YEARS 1, 2, 3, 4, AND FIVE.
THE PROJECTS THAT GOT MOVED TO YEARS THREE, FOUR, AND FIVE WERE PROJECTS THAT WE DON'T ABSOLUTELY HAVE TO DO IN THE NEXT TWO YEARS.
BUT THAT'S ASSUMING THAT WE STILL HAVE THE RATE PAYERS PAY FOR ALL OF THOSE PROJECTS.
WE CAN PULL OUT ALL THE MEGASITE PROJECTS AND PUT THEM IN A DIFFERENT, ALL OF THOSE PULLED OUT.
SO THAT'S WHAT I'M TALKING ABOUT.
THAT'S WHAT I'M HOPING TO SEE AT SOME POINT.
'CAUSE I STILL THINK THERE'S ROADS WE NEED TO, LIKE, SINCE WE'RE TALKING, THERE'S ROADS WE NEED TO WIDEN AND THERE'S ROADS WE NEED TO JUST EDGE.
SCHMIDT TO ME, PUT A RIGHT TURN LANE IN BLOCK TRAFFIC.
WE DON'T NEED TO BE EARMARKING 20 MILLION TO DO IT.
WE'RE GONNA HAVE TO DEAL WITH TRAFFIC SOMEWHERE.
BUT WE'RE GONNA HAVE TO PRIORITIZE OUR ROAD PROJECTS 'CAUSE WE DON'T HAVE 500 MILLION FOR ROADS EITHER OF IT.
SO, UH, WHILE I UNDERSTAND THE, THE IMPORTANCE OF TRAFFIC TO THE COMMUNITY TIMING WISE, IT'S MORE IMPORTANT THAT WE FINISH THE WATER AND WASTEWATER BEFORE THE TRAFFIC.
BECAUSE THE EARLIEST YOU COULD GET A BOND CALL ON WOULD BE NOVEMBER.
SO WE WOULD HAVE PLENTY OF TIME BETWEEN NOW AND THE END OF SUMMER FOR THE COUNCIL TO START CALLING A BOND ELECTION FOR TRAFFIC.
BUT ON THE WATER AND WASTEWATER EVERY DAY THAT WE DELAY IS A DAY LONGER THAT WE'RE NOT STARTING CONSTRUCTION ON THE WASTEWATER TREATMENT PLANT.
'CAUSE WE HAVEN'T ISSUED ANY DEBT.
SO I, I HAVE TO BE VERY CAREFUL AND COGNIZANT OF THE FACT THAT WHAT ARE WE GONNA DO? WHAT ARE WE NOT GONNA DO? YOU KNOW, BECAUSE WE GOTTA PULL THE TRIGGER OR NOT.
AND THEN WE CAN TACKLE THE TRAFFIC IMMEDIATELY AFTER THAT.
SO I WANT THE AUSTERE OF, WE, WE ALREADY TALKED ABOUT MEGASITE PAGE PER ITS OWN.
THE, THAT SOUTH WATER EXTENSION IS GONNA BE BY DEVELOPER.
UM, AND THEN ANYTHING AND THEN WHAT ACTUALLY HAS TO BE DONE TO HIT THE TCQ RERATE, WHICH WOULD BE THE FRAME, SWITCH THE THING AND LET US SEE THAT NUMBER AND WHAT THAT DEBT SERVICE IS ASSUMING.
'CAUSE WHAT IF, YOU KNOW, THE ECONOMY SLOWS DOWN AND NOTHING BUILDS OUT THERE FOR 10 YEARS.
IT IS NOT ON OUR HORIZON BECAUSE WE'RE GONNA HAVE DEVELOPER OR THE TURS MEGASITE IS GONNA PAY FOR IT OR WHATEVER.
AND IS A SIGNATURE PARK A HIGHER PRIORITY THAN WATER WASTEWATER AND ROADS? BECAUSE THAT'S 10.
BUT NOW AS WE'RE GOING THROUGH THIS, WE'RE PROGRESSING DOWN THIS ROAD TO SPEND 10 MILLION IN MY MIND ON A PARK THAT IS A WANT, NOT A NECESSITY, BUT WE HAVE A BILLION DOLLARS IN NECESSITIES.
ALTHOUGH 10 MILLIONS NOT, LET'S CANCEL THE PARK AND JUST TAKE THAT MONEY BACK.
THAT'S JUST TAKE THE MONEY BACK, CANCEL THE PARK.
NO MORE PARK KIDS DON'T GET IT PARKED.
[01:00:01]
THE TRIGGER AJOUR.