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SIX 10, AND WE WILL CALL THIS SESSION OF TOURS BOARD THREE FOR THURSDAY, JULY 9TH, 2026 TO ORDER AT 6:10 PM ALL RIGHT.UH, FIRST ITEM IS GOING TO BE ROLL CALL.
UH, WE HAVE BEEN INSTRUCTED BY LEGAL SINCE WE DO NOT HAVE A QUORUM, THAT WE SHOULD MAKE A MOTION TO PROCEED AS IF WE DO HAVE A QUORUM, RIGHT? SO BE IT.
SO YOU'RE GONNA, YOU'RE GONNA ASSUME THAT YOU HAVE A QUORUM IN CASE SOMETHING'S CHANGED THAT SHE DIDN'T HAVE ACCESS TO.
IF FOR SOME REASON SHE FINDS OUT THAT THERE'S NOT BEEN AN AMENDMENT AND THERE TRULY WAS A NEED FOR FOUR TO BE, UH, CONSIDERED A QUORUM, THEN SHE SAID WE'LL HAVE TO RE HOLD THE MEETING.
I'M, I'LL MAKE A MOTION TO, UH, CONTINUE WITH THE MEETING, UH, AND ASSUME WE HAVE A QUORUM WITH THREE AND IF WE LEARN OTHERWISE, THEN WE'LL DEAL WITH IT THEN.
AND I WILL SECOND ANY DISCUSSION THEN CALL FOR VOTE.
AND THEN WE MOVE ON TO THE ACTUAL AGENDA.
3.1, DISCUSSION AND POSSIBLE ACTION RELATING TO THE TAX INCREMENT REINVESTMENT ZONE.
TUR THREE, PROPOSED BUDGET FOR FY 2026.
GOT A LITTLE TOO EXCITED THERE.
SO, UM, WITH THE TURS, WE'RE GONNA HAVE, UM, WE'RE GONNA TALK ABOUT TWO BUDGETS THIS EVENING.
THE FIRST ONE IS THE TUR THREE, WHICH IS FUND 96 AND TURS THREE, THE DATA CENTER, THE BUSINESS PERSONAL PROPERTY, UM, IS FUND 38.
AND THERE'S A FEW CHANGES IN THIS PRESENTATION FROM WHAT I ORIGINALLY SENT OUT THE OTHER DAY.
UM, JUST SOME UPDATED INFORMATION, BUT I'LL POINT THAT OUT AS WE GO THROUGH.
SO TO TALK ABOUT TURS THREE FUND 96 FIRST, UM, THE PROPERTY VALUES LAST YEAR IN 26, OR IT'S CURRENT YEAR THAT WE'RE IN 111,584,378.
AND THIS YEAR, UM, IT'S INCREASED A LITTLE OVER 143 MILLION TO 254,683,951.
AND OF COURSE, THIS IS JUST FROM THEIR PRELIMINARY VALUES RIGHT NOW.
UM, AS A REMINDER, WE WON'T GET THE CERTIFIED VALUES TILL THE 25TH OF THIS MONTH.
SO WE'RE BASING THIS ALL ON PRELIMINARIES AT THIS TIME.
SO, JUST TO KIND OF GO THROUGH THE SUMMARY OF THIS BUDGET, UM, THE 27 PROPOSED BUDGET HAS ESTIMATED REVENUES OF A TOTAL OF 491,230, WHICH IS CONSISTENT OF ASSESSMENT REVENUE BASED ON THOSE VALUES THAT WE JUST TALKED ABOUT.
TOTALS 490,821 AND INTEREST INCOME IS BEING PROPOSED AT $409 TO GET THE TOTAL OF 4 91 230, UM, EXPENDITURES.
AND WE'LL SPEND A LITTLE BIT OF TIME ON THIS.
UM, THE ONLY EXPENDITURES THAT WE HAD THIS CURRENT YEAR WAS THE TRANSFER TO DEBT SERVICE, WHICH WAS, UM, RIGHT AT $200,000 IN THIS YEAR.
UM, NEXT YEAR WE'RE PROPOSING IT BE RAISED TO 246,250, AND IT'LL STAY THAT WAY FOR PROBABLY ABOUT FOUR YEARS, AND THEN IT'LL START INCREASING.
AND WHAT THAT IS, IS JUST THE PRINCIPAL PAYMENTS ON THE DEBT THAT'S RELATED TO THE EAST WEST SPINE ROAD.
UM, THAT'S THE SERIES 23, UM, DEBT ISSUANCE.
AND THAT MONEY'S BEING TRANSFERRED TO DEBT SERVICE TO OFFSET, UM, THAT FUND FOR THE, JUST THE PRINCIPAL PORTION OF THE PAYMENTS.
THE ECONOMIC DEVELOPMENT CORPORATION IS, UM, TRANSFERRING MONEY TO DEBT SERVICE FOR THE INTEREST PORTION.
SO THAT'S HOW THAT'S BEING COVERED.
IS THAT THE FULL, IS THAT THE FULL INTEREST? THAT IS THE FULL INTEREST FOR THAT YEAR.
AND WE'LL TALK ABOUT THAT A LITTLE BIT FURTHER BECAUSE, UM, I WANNA MAKE SURE THAT THE BOARD UNDERSTANDS THAT THAT'S JUST THIS YEAR'S THAT THERE IS, UM, SEVERAL MORE YEARS OUT THERE, LIKE 20 YEARS YET OR SO.
UM, LEFT TO, TO REACH THE TOTAL, BUT THIS IS JUST THE PRINCIPAL PORTION AND THAT'S ALL WE'VE GOT PLANNED, UM, THROUGHOUT THE LONG RANGE BUDGET.
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COMES TO ABOUT A LITTLE OVER $11 MILLION WHEN IT'S ALL SAID AND DONE FOR THE OUT YEARS.WHAT'S NEW FOR THIS YEAR, UM, IS A TRANSFER TO THE UTILITY FUND FOR 225,000.
AND THAT'S TO, UM, PAY THE PRINCIPAL INTEREST A PORTION OF THE PRINCIPAL AND INTEREST PORTION OF THEIR PAYMENTS FOR THE DEBT THAT'S RELATED TO THE MEGA SITE WATER AND WASTEWATER PROJECTS.
SO WE BORROWED, UM, SERIES 22, UM, COS AND 24 COS TO FUND THE CONSTRUCTION OF THE, THE MEGASITE WATER AND WASTEWATER PROJECTS.
AND WE'RE NOT TAKING THE FULL PRINCIPLE AND INTEREST PAYMENTS, WE'RE JUST TAKING A PORTION OF IT.
UM, AND SO FOR THIS YEAR IT'S 225,000.
UM, WE HAVE INCLUDED ADMINISTRATIVE EXPENSES OF 2,500.
AND SO THOSE TOTALED TOGETHER IS THE 473,750.
AND THAT LEAVES, UM, A FUND BALANCE NEXT YEAR AT THE END OF SEPTEMBER AT 29,164.
SO HERE'S, UM, TO TALK ABOUT THE ANNUAL PRINCIPAL PAYMENTS ON THE 23 GOS.
SO AS YOU CAN SEE, IN 27 THROUGH 30, THE PAYMENTS WOULD BE 2 46, 2 50.
AGAIN, THAT'S JUST THE PRINCIPLE IN 31 TO 35, IT'S GONNA VARY, BUT IT'S GONNA RANGE FROM 390,000 IN 31 TO 475,000 IN 35.
THEN IN 36 IT JUMPS TO 500,000 AND GOES OUT, UM, AND VARIES UP TO 590,000.
IN 20 40 41 IT GOES TO 615,000 AND, AND THEN RANGES UP TO 6 90, 600 90,000 IN 20 44, 20 45, IT GOES TO 720,000.
IN 47, IT ENDS AT ABOUT 780,000.
AND THEN IN 48 IS THE LAST OF THE PRINCIPAL PAYMENTS ON THAT DEBT AND IT'S 815,000.
SO WHAT I WAS TRYING TO SHOW, I KNOW THAT'S A LOT OF NUMBERS AND, AND AND INFORMATION, BUT WHAT I WAS TRYING TO SHOW IS, YOU KNOW, WE'RE AT 250,000 BASICALLY RIGHT NOW.
IT'S GONNA GRADUALLY GO UP, UM, TO WHERE IT HITS THE MAX AT 815,000.
SO JUST WANTED TO MAKE, UM, THE BOARD AWARE OF THAT.
AND AGAIN, THE TOTAL THAT'S GONNA BE REIMBURSED ON PRINCIPAL PAYMENTS IS THAT 11,960,000.
AND THE PURPOSE OF DOING THIS THEN WE STARTED LAST YEAR WAS THE FIRST YEAR THAT WE HAD A BUDGET IN THIS, UM, FUND.
BUT THE IDEA IS TO, UM, MAKE THOSE PAYMENTS TO TRANSFERS TO DEBT SERVICE FUND TO LOWER THE, THE INTEREST IN SINKING PORTION OF THE TAX RATE.
SO IT DOESN'T CHANGE YOUR TAX RATE, BUT IT, IT CHANGES THE PERCENTAGE THAT GOES TO M AND O, THE GENERAL FUND MAINTENANCE AND OPERATION AND WHAT GOES TO PAY THE DEBT, WHICH IS YOUR INTEREST IN SINKING.
SO THE TAX RATE WOULDN'T HAVE TO PAY THAT PORTION OF THAT DEBT.
AND THAT'S JUST FOR THE SPINE ROAD? YES, THAT'S JUST, THAT'S JUST THE, UM, THE DEBT RELATED TO THE 23 GOSS MM-HMM
WHICH WAS THE EAST WEST SPINE ROAD.
AND THAT'S THE STREET PORTION PORTION, THAT'S THE TAX PIECE.
THE OTHER PIECE THAT WE JUST TALKED ABOUT WAS THE WATER AND WASTEWATER, WHICH IS THE UTILITY FUND.
SO HERE'S THE, THE WATER AND WASTEWATER PORTION.
AND SO THIS IS NEW FOR THIS YEAR BECAUSE OUR VALUES INCREASED ENOUGH THAT WE HAVE ENOUGH TO TAKE THAT 225,000 FOR THE PRINCIPAL INTEREST PAYMENTS OR A PORTION OF THOSE PAYMENTS, UM, IN TOTAL TO SEND OVER TO THE UTILITY FUND.
UM, AGAIN, RELATED TO THE MEGA SITE WATER AND WASTEWATER PROJECTS, UH, RIGHT NOW, UH, WE CAN ONLY DO A HUNDRED, 225,000, BUT THOSE PAYMENTS ARE REALLY, UM, CLOSE TO ABOUT 1,000,003 TO 1,000,540 OVER A PERIOD OF TIME.
UM, SO RIGHT NOW, 225 IS ALL THIS FUND CAN WITHSTAND, BUT AS WE GET MORE VALUES AND THOSE VALUES INCREASE AND THEY GET MORE OF THE, THE TURS ONLINE, UM, AS FAR AS VALUES, UM, WE CAN PUT MORE TO, UM, THE UTILITY FUND, UM, AS, AS WE GET MORE VALUES AND REVENUES.
UM, AND THIS IS TO HELP REDUCE THE NEED TO INCREASE THE UTILITY RATES.
SO THAT HELPS US MAINTAIN WHAT OUR RATES ARE BY TRANSFERRING IT TO THE UTILITY FUND BECAUSE THE UTILITY FUND IS THE ONE WHO HAS TO MAKE THE PRINCIPAL INTEREST PAYMENTS ON THIS DEBT.
SO THE NEXT PIECE OF THIS BUDGET IS THE TS THREE, THE DATA CENTER, UM, BUSINESS, PERSONAL PROPERTY.
UM, AND IN YOUR SHEET EARLIER, WE HAD A
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DIFFERENT FUND NUMBER.I THINK WE HAD IT AS 98 MM-HMM
UM, AND AS WE GOT TO LOOK, AND, UM, CHRISTINA POINTED OUT THAT WE WOUND UP USING THAT FUND DURING THE YEAR.
SO WILL IT BE ASSIGNING IT FUND 38? UM, THE PROPERTY VALUES IN 26, THERE WAS NOTHING ONLINE LAST YEAR.
THIS IS THE FIRST YEAR WE HAVE AN ESTIMATED VALUE OF 10 MILLION 9 93, 4 72, ALMOST 11 MILLION THAT'S FOR COMPUTERS THAT THEY'VE GOT ONLINE.
UM, WHAT'S CHANGED FROM YOUR ORIGINAL, UM, INFORMATION THAT I SENT YOU IS THE ASSESSMENT REVENUE WE RAISED TO 42,427 BECAUSE SKYBOX HAS NOT ELECTED TO CLAIM THEIR, UH, ABATEMENT.
SO THEY HAVEN'T DONE THAT YET.
SO THEY WON'T GET THAT 50%, UM, DEDUCTION OR CONTRIBUTION JUST, JUST FOR BPP.
AND, UH, CHRISTINA HAD A GOOD POINT.
THEY PROBABLY WOULDN'T WANNA DO THAT JUST YET UNTIL THEY GET MORE OF THEIR REVENUE COMPUTERS IN THAT BUSINESS, PERSONAL PROPERTY, ONLINE AND OPERATIONAL BEFORE THEY WANNA CLAIM, UM, THAT ABATEMENT.
YEAH, IT'S A $21,000 DIFFERENCE.
I MEAN, IT'S NOT GONNA DROP IN THE BUCKET.
UM, SO THE REVENUES ARE 42,427.
WE HAVE NO PROGRAMMED EXPENDITURES AT THIS POINT.
SO THAT WOULD LEAVE YOUR FUND BALANCE AT 42,427 FOR NEXT, UM, SEPTEMBER OF 27.
AND WHAT, WHAT, WHAT'S THE PORTION THAT WE'RE GOING GOING TO ABATE ONCE THEY DO AUTHORIZE IT? IT'S 50%.
FOR SOME REASON, I DON'T REMEMBER 75, BUT OBVIOUSLY, YOU KNOW, AND BECAUSE I DON'T REMEMBER WHAT WE ENDED UP 50.
UM, SO RIGHT NOW, YOU KNOW, THIS IS THE FIRST YEAR AND THERE'S NOT MUCH WE CAN DO AT THIS POINT, UM, WITH THAT, BUT DEPENDING ON THE PROPERTY VALUES, UM, WE COULD ALLOCATE MONEY FROM THIS FUND TO GO TO CAPITAL IMPROVEMENT PROJECTS.
AND SO LOOKING AT SOME OF THE ESTIMATES THEY ORIGINALLY PROPOSED TO US WHEN, WHEN SKYBOX WAS, YOU KNOW, MAKING THEIR, THEIR MOVE TO HERE, UM, I'M ESTIMATING WE COULD HAVE ABOUT 6 MILLION TO $10 MILLION THAT WE COULD USE TO FUND CAPITAL IMPROVEMENT PROJECTS.
AND WHAT THAT WOULD DO IS, UM, EITHER ELIMINATE OR REDUCE THE AMOUNT THAT WE WOULD NEED TO BORROW FOR CAPITAL IMPROVEMENT PROJECTS BASED ON THIS CONTRIBUTION.
UM, IT DOES NOT HAVE TO BE PROJECTS IN THAT AREA.
THE WAY THE FINANCING PLAN IS WORDED, IT CAN BE FOR ANY WATER WASTEWATER STREET PROJECT, AN INFRASTRUCTURE PROJECT.
SO, UM, WE'LL KEEP THAT IN MIND AS THIS FUND GROWS AND AS WE GO THROUGH OUR CAPITAL IMPROVEMENT BUDGETS.
UM, AND WE'LL KEEP THAT IN MIND AS TO HOW WE CAN USE THOSE MONIES TO OFFSET, UM, FUTURE PROJECTS.
SO REALLY SHORT, UH, ANY QUESTIONS, ANYTHING YOU'D LIKE TO SEE DIFFERENT OR I'VE GOT, I'VE GOT SIX QUESTIONS.
SO, UH, ANYONE ELSE HAVE QUESTIONS OR SHOULD I JUMP INTO IT? LET'S GO.
UM, SO, UH, THE, THE COST OF THE SPINE ROAD IS SHOWING AT AS 11 960 11,960,000.
THAT'S WHAT WE BORROWED FOR EAST WEST.
AND, AND THAT'S WHAT I WAS TRYING TO CONFIRM BECAUSE I'VE SEEN A DIFFERENT AMOUNT ON THE CIP AND I'VE SEEN A DIFFERENT AMOUNT MM-HMM
SO I WAS JUST TRYING TO MAKE SURE WE'RE NOT COMING UP SHORT.
NO, THAT WAS JUST WHAT WAS BORROWED FOR THE STREET PORTION THROUGH THE 23 GOS WAS THE 11,000,960.
THERE WAS OTHER EXPENSES THAT ARE NOT RELATED TO THAT, THAT BORROWING MM-HMM
I JUST WANTED TO MAKE SURE WE WEREN'T COMING UP SHORT.
UH, RELATED TO THAT, THE ED, IT SAYS THAT THE EDC IS PAYING THE INTEREST AND WE'RE PAYING THE PRINCIPAL MM-HMM.
DO WE KNOW WHAT THEIR INTEREST PAYMENTS ARE? YES.
JUST GIMME ONE SECOND TO GET IT UP.
AND THE REASON I'M ASKING THIS ONE FOR EVERYONE'S INFORMATION IS EDC PULLED IN 2.8 MILLION AND IF WE'RE TAKING 10% OF THAT BUDGET, I DEFINITELY THINK THAT EDC NEEDS TO KNOW, HEY, YOU'RE PAYING 10% OF YOUR BUDGET FOR THIS.
SO IF YOU DON'T ALREADY, OKAY, SO FOR 27, THE, UM, THE BUDGET OR THE ACTUAL INTEREST PAYMENTS ARE 515,200.
UM, BUT IT WORKS ON THE, IN THE OPPOSITE, AS YOUR PRINCIPAL
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PAYMENTS GO UP MM-HMMTHEIR INTEREST PAYMENTS ARE GOING DOWN.
SO, YOU KNOW, IT'S AT THE FIVE SOMETHING, THEN IT GOES TO 450 RANGE, THEN IT DROPS DOWN TO 300,000 AND IN THE LAST YEAR IT'S DOWN TO LIKE, IN THE HUNDREDS.
UM, THE LAST YEAR IN 48 IT'S $35,000.
SO YEAH, AS YOU PICK UP MORE, THEY'RE PICKING UP LESS THAT, THAT'S KIND OF WHAT I WAS AFRAID OF, IS THE INTEREST IS GOING TO BE A SIGNIFICANT PORTION OF EDCS BUDGET.
AND I'M NOT SURE IF THEY'RE AWARE OF THAT.
SO WANTED TO KIND OF, UM, I DO BELIEVE ALBERTA IS AWARE
ALBERTA IS AWARE AND SHE DOESN'T, SHE DOESN'T KIND OF POINT THAT OUT WHEN WE WERE TALKING ABOUT, UM, LET ME GO TO THIS NEXT SLIDE.
NOT TO INTERRUPT YOUR QUESTIONS, BUT MAYBE IT'LL GO FOR IT.
WHY IS HE NOT MOVING NOW? UH, IT'S NOT IN THE PRESENTATION, I GUESS.
CHRISTINA, CAN YOU PUT PUT IT ON THE, I GET EXPANDED I GUESS OUT FULL SCREEN.
I SHE SHOULD BE ABLE TO FROM CURRENT SLIDE.
SO WHEN WE START TALKING ABOUT FUND 38, UM, NO, I'M SORRY, LET ME BACK UP.
OH, TELL I DON'T DO THIS A LOT.
ISN'T THAT FUND 11? EXCUSE ME.
FUND 11, FUND 38 WAS THE FUND.
FOR THE BP I'M SORRY, FUND 38 WAS FOR THE BPP, RIGHT? THAT IS CORRECT.
SO FUND 11 WAS FOR THE ROAD, RIGHT? THAT'S THE DEBT FOR IT.
RIGHT? FUND 96 IS YOUR TURS THREE, WHICH IS FUNDING THE PRINCIPAL AND THE INTEREST FOR THE, THE TURS ROAD ON THE DEBT.
UM, BUT THE NEW ITEM THAT WE HAVE THIS YEAR FOR THE MEGASITE, UM, THE 2 25 NOW COUNCIL APPROVED BACK IN, I BELIEVE IT WAS MAY EDC IS PAYING, UM, OR REIMBURSING THE UTILITY FUND.
NOW IT'S REIMBURSING, UM, SOME UPFRONT COSTS THAT THE UTILITY FUND PAID FOR EAST WEST PINE ROAD AND RELATED TO WATER AND WASTEWATER.
BUT IN TOTAL, THE, THE PRINCIPAL INTEREST PAYMENTS, THOSE PORTIONS RELATED TO THE MEGASITE PROJECTS FOR WATER AND WASTEWATER ARE A LITTLE OVER $2 MILLION.
AND YES, EDC KNOWS AND THEY ARE PAYING THAT, BUT WHAT THE COUNCIL WANTS TO DO IS REDUCE THAT 2 MILLION BY OFFSETTING IT FROM THIS FUND, UH, WHILE SHE'S TAKING A SIP OF WATER.
I ALSO WANNA NOTE THAT THE EDC DOES HAVE A CASHFLOW FORECAST THAT GOES OUT ABOUT 10 TO 15 YEARS.
AND ALL OF THIS IS BUILT INTO THAT.
SO THEY HAVE THAT INFORMATION AS THEY MAKE SOME OF THESE BIG DECISIONS.
DON'T WANT TO SURPRISE ANYONE WITH HALF A MILLION DOLLAR BILL.
AND IS IT THE EDC CASH ON HAND IS ABOUT 40 MILLION? NO, RIGHT NOW IT'S ABOUT, UH, I WANNA SAY 13 MILLION WE HAD BUDGETED FOR A BIGGER SALE TO OCCUR.
AND BY THE WAY, YOU'LL HAVE A BUDGET AMENDMENT FOR THAT NEXT EDC MEETING.
SO 2 MILLION IS GOING TO BE REIMBURSED TO THE UTILITY FUND DUE TO THE IMPROVEMENTS WITH THE, THE ROAD.
SO THAT'S KIND OF THE, THE WATER AND WASTEWATER CONSTRUCTION, THE WATER WASTEWATER.
SO THIS PORTION RIGHT HERE, SO I MEAN, IT'S KIND OF APPROPRIATE.
OBVIOUSLY THE TS THREE BUDGET CAN ONLY, YOU KNOW, PAY SO MUCH YEAH.
AND THEN THE EDCS GOTTA PICK UP THE, THE OTHER PORTION.
BUT WHAT COUNCILS TRYING TO DO IS WHERE WE'RE AT 2 MILLION, THAT LONG RANGE BURDEN ON EDC AND HAVE THIS AS IT GROWS HELP OFFSET.
SO EDC DOESN'T HAVE TO TAKE THE FULL BURDEN OF THAT 2 MILLION MM-HMM
SO THAT'S WHY I SAY, YOU KNOW, IT COULD GROW TO 1.3 OR 1,000,005, JUST DEPENDING.
AND THEN WHAT IS THE PROJECTION OF IT GROWING TO THAT MILLION FIVE? THAT 1.3 AND 1.5 MM-HMM
I GUESS WHAT, WHAT'S THE TIMEFRAME ON THAT, UH, WITHIN THE NEXT FIVE YEARS? YEAH, I, I LOOKED AT THROUGH 20 THROUGH, EXCUSE ME, THROUGH 33 AND IT'S LIKE 1,000,004, 1,000,005 40, AND THEN GOES TO 1,000,003 50 AND 33.
AND THAT, THAT WAS KIND OF MY NEXT QUESTION.
SO WE'RE LOOKING AT, UH, ABOUT 10.8 MILLION FOR BPP IN 26 MM-HMM
AND PRIOR TO THE UPDATE IT WAS, UH, YOU KNOW, 21,000 AND NOW IT'S 42.
SO WHEN YOU APPLY THEIR RATE AND THEN DO YOUR CALCULATION, THAT'S WHAT IT COMES TO.
SO I'M GONNA OPERATE ON THE ASSUMPTION THAT THEY'RE ASKING FOR THE ABATEMENT IN FUTURE YEARS WHEN THEY HAVE A MORE SUBSTANTIAL, THAT'S OUR ASSUMPTION.
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SO THEY NEED A REVENUE STREAM.SO RIGHT NOW, IF THE PROJECTIONS THAT WE SEE HERE ON THE BUDGET ARE CORRECT MM-HMM
AT, UH, 6.9 MILLION FOR NEXT YEAR, THAT MEANS THAT THEY WOULD HAVE TO PUT IN THREE AND A HALF BILLION DOLLARS WORTH OF BUSINESS PERSONAL PROPERTY IN THE NEXT YEAR.
PROJECTED OUT ON ANY DOCUMENTS THAT WE CAN HOLD THEM TO? OR IS THIS JUST WHAT THEY SAID? NO, THIS IS JUST WHAT THE, UM, THE ORIGINAL ESTIMATIONS WERE WHEN Y'ALL LOOKED AT SKYBOX COMING.
UM, YOU KNOW, REALLY ACTUALLY, I THINK SOME OF THIS WAS ALREADY SUPPOSED TO BE MUCH FURTHER ALONG THAN IT IS EXACTLY, BUT THEY'VE BEEN KIND OF HELD UP MM-HMM.
IF I'M NOT MISTAKEN WITH ENCORE AND SOME OTHER THINGS MM-HMM
UM, YOU KNOW, I'M NOT GOING TO WRITE IN STONE THAT WE'RE GONNA GET 6.9, THAT WAS JUST FROM THE ORIGINAL ESTIMATE.
AND AS WE GET NEW VALUES, WE'LL CONTINUALLY UPDATE THOSE.
AND, AND THAT'S, THAT'S WHAT I WAS LOOKING AT IS HOW ACCURATE IS THAT NUMBER? BECAUSE DOING THE MATH, IT'S, THAT'S THREE AND A HALF BILLION DOLLARS IN A YEAR INTO THAT FACILITY.
UH, SO THAT WAS ON THE PROJECTION.
AND THEN, UH, THE OTHER PIECE ON THE WATER WASTEWATER MAKE ONE COMMENT ON THAT.
UM, I MEAN THESE ARE, THESE ARE, YOU KNOW, VALUE VALUATIONS BASED ON WHAT'S ONLINE AND RUNNING.
SO THEY COULD HAVE A THOUSAND SERVERS IN THERE RIGHT NOW THAT AREN'T ONLINE.
SO, UM, BUT A THOUSAND SERVERS, AS FAR AS I KNOW, ISN'T THREE AND A HALF BILLION DOLLARS.
THAT COULD BE ONE QUARTER THAT MAYBE WON'T HAVE FOUR OR 5,000.
SO I'M JUST SAYING IS THAT THE, THEY, THE, THE INVENTORY IS TRICKLING IN BECAUSE SAMSUNG AND NVIDIA AND A MD, THEY CAN'T PROVIDE 4,005,000 SERVERS.
AND, AND, AND I'M NOT DISAGREEING WITH THAT.
WHAT I'M SAYING IS THAT GOING FROM A $10 MILLION BPP TO A THREE AND A HALF BILLION DOLLAR PPP IN ONE YEAR SEEMS A LITTLE AMBITIOUS.
'CAUSE WE DON'T KNOW WHAT THEY HAVE THERE NOW.
AND IF WE'RE JUST GOING OFF OF PROJECTIONS FROM WHAT THEY TOLD US, I WOULD RATHER, IF WE'RE GONNA START BUDGETING FURTHER OUT AND START ASSIGNING THIS MONEY TO PROJECTS FURTHER OUT, I'D LIKE IT A LITTLE MORE SOLID THAN WELL, THAT'S WHAT THEY SAID.
UM, AND I AGREE AND I UNDERSTAND WHAT YOU'RE SAYING, BUT KEEP IN MIND THIS ONE IS JUST GOING TO U BE USED FOR, UM, FOR THE MAIN PURPOSE OF, UM, CAPITAL IMPROVEMENT PROJECTS.
AND SO IF THEY DON'T GET A REVENUE GENERATION OF 6 MILLION OR 5 MILLION OR WHATEVER IT IS, THEN WE WON'T BE CONTRIBUTING TO CAPITAL IMPROVEMENT PROJECTS TILL THEY GET HERE.
THEY ALSO SAID, YOU KNOW, THEY'RE, THEY'RE GONNA HAVE SIX BUILDINGS.
WELL, THEY'RE JUST NOW ON THREE.
SO, YOU KNOW, I UNDERSTAND YOUR POINT, BUT WE DON'T HAVE ANYTHING OTHER THAN THEIR ORIGINAL ASSESSMENT.
WELL, BUT KEEP IN MIND WE'RE NOT ASSIGNING ANYTHING UNTIL WE ACTUALLY HAVE AND SEE THE VALUES COMING.
BUT THERE'S TWO BUILDINGS AND THE THIRD BUILDING IS GONNA BE THREE TIMES THE SIZE OF THE FOOTPRINT ALREADY.
SO THERE'S REALLY GONNA BE THREE FINAL BUILDINGS, BUT OKAY.
THE THIRD BUILDING GOOD TO KNOW, IS THREE TIMES THE SIZE OF WHAT THEY HAVE.
SO, UM, I THINK BUILDING TWO IS PRETTY MUCH DONE AND COMPLETE, BUT THEY'VE ALREADY BEGUN THEIR WORK ON
AND IT'S A BUT IT'S NOT FINISHED.
UNIT AND THAT'S WHAT THE SECOND ENCORE SITE WAS.
WAS TO BASICALLY, AND DO THAT EXTRA NEED FOR THE, AND, AND THE REASON I'M LOOKING AT, YOU KNOW, FUTURE USE, WE COULD, BECAUSE THESE MEGA SITE WATER AND WASTEWATER PROJECTS WERE ON THE CIP LIST.
SO WE COULD USE THESE FUNDS THAT WE RECEIVE TO PAY THOSE OFF EARLY AND CLEAR THAT DEBT.
WE COULD UM, UH, YOU COULD, UM, BEFORE WE DID THAT THOUGH, WE NEED TO DO SOME CONSIDERATION AND, AND DISCUSSIONS WITH OUR FINANCIAL ADVISORS BECAUSE SOME OF THIS DEBT YOU DON'T WANNA PAY OFF EARLY AND SOME OF IT YOU CAN'T PAY OFF EARLY, SO MM-HMM
UM, BUT WE CAN GRADUALLY INCREASE IT BASED ON, ON WHAT WE'VE RECEIVED, PAY OFF EARLY BY BUMPING SOMETHING A YEAR AHEAD.
THEY DON'T NEED THE DEBT FOR THAT.
SO OTHER WORDS, THAT'S SIX TO 10 MILLION.
MAYBE THERE'S AN INTERSECTION THAT WE CAN NOW BUMP YEAH.
WE, WE CAN USE IT FOR OTHER WATER WEIGHT MICRO EFFECTIVELY.
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IT FOR OTHER WATER WASTEWATER PROJECTS.UM, BUT DOING THE MATH FOR, FOR THE COST OF THE TWO CAPITAL IMPROVEMENT PROJECTS THAT I WAS ABLE TO FIND, ONE FOR WATER, ONE FOR WASTEWATER FOR THE MEGA SITE, UH, THAT CAME OUT TO ABOUT $19 MILLION FOR THOSE PROJECTS.
SO THE WAY I AM READING THE BUDGET, AND CORRECT ME IF I'M WRONG, WE WOULD HAVE ENOUGH SOCKED AWAY INTO THE CAPITAL IMPROVEMENT, UH, CONTRIBUTIONS TO PAY THOSE OFF.
BUT IT WOULD BE AT THE EARLIEST, WE WOULD HAVE FREE MONEY OR MONEY FREED UP FOR OTHER CAPITAL IMPROVEMENTS.
IF WE WERE TO FOCUS ON THOSE TWO, THEN THE EARLIEST WE WOULD HAVE THAT IS 2031.
SO IF WE WERE TO PAY OFF THOSE TWO PROJECTS, IF WE COULD PAY THEM OFF EARLY, THEN WE COULD START LOOKING AT OTHER PROJECTS PROVIDED WE CAN PAY THEM OFF AND PROVIDED WE DECIDE NOT TO A, WE'LL FUND THIS ONE AND WE'LL KEEP PAYING THE RIGHT, THE PRINCIPAL AND INTEREST ON THIS, IT'S CHEAPER TO PAY THAT INTEREST.
HOW, HOWEVER THE, THE ACCOUNTING WORKS OUT ON THAT.
I WAS JUST KIND OF LOOKING AT IT LIKE, IS THIS, AM I ON THE RIGHT TRACK HERE? YOU KNOW, IS THIS SOMETHING THAT WE COULD BE LOOKING AT DOING WITH THIS? 'CAUSE ULTIMATELY, WELL, YOU KNOW, AND PROJECTIONS, YOU KNOW, IT IS AN ESTIMATE AND YEP.
AS AS, UH, ALBERTA SAID THAT, I THINK WITH THE, IF WE TAKE THE, THE ENCORE DELAYS AND THEN IF WE WERE TO PUSH THE PROJECTIONS FROM A SKY THAT SAME TIMEFRAME, I THINK WE'RE ONLINE FOR, FOR STILL BEING IN THE SAME CONFIDENCE THAT WE HAD ORIGINALLY.
WE HAVE THAT SAME CONFIDENCE GOING FORWARD.
SO IF IT'S A PLUS OR MINUS 10, 15% WINDOW MM-HMM
BUT IT'S NOW 12 MONTHS OUT, THEN I THINK YOU CAN STILL TAKE THOSE NUMBERS 'CAUSE IT'S STILL A PROJECTION IN AN ESTIMATE.
WELL THOSE WERE THE ONES THAT I HAD, I WAS JUST TRYING TO CLARIFY KIND OF WHERE THE MONEY WAS COMING FROM, WHERE THE MONEY WAS GOING AND MM-HMM
BUT THAT'S WHAT I HAD ON THIS.
I THINK THE, THE BUDGET FOR 26, 27 LOOKS SOLID.
WE'RE USING REAL NUMBERS OR ALMOST REAL NUMBERS BECAUSE WE HAVEN'T RECEIVED THE ASSESSMENT YET.
BUT, YOU KNOW, I, I THINK IT LOOKS SOLID.
SO, SO IS SKYBOX THE ONLY LIKE REVENUE GENERATING PROPERTY RIGHT NOW? BECAUSE I KNOW THAT, UM, IT LOOKS RIGHT RIGHT HERE.
UM, WHAT DO YOU CALL IT, TITAN, THEIR THEIRS HAVEN'T IMPROVED AT ALL MUCH.
'CAUSE I THINK IT'S JUST UNDEVELOPED.
AND THEN ALSO LIKE KRUGER, THESE ARE ALL PRIVATE, LIKE MM-HMM
THEY'RE STILL PARCELS, RIGHT? MM-HMM
THAT ARE STILL, YOU KNOW, BEING FARMED AND THINGS LIKE THAT.
SO IS, IS SKYBOX THE ONLY ONE THAT'S KIND OF PROPPING THIS, I GUESS BUDGET AT THIS POINT? YES.
SO JUST BECAUSE I DON'T KNOW OF ANY OTHER ACTIVITY GOING ON.
SO OUT OF THE 490,000 THAT WE'RE BUDGETING AS REVENUE, UM, THAT IS MAINLY COMING FROM SKYBOX.
THE, THE INDIVIDUAL PERSON, WELL THEY'RE REAL PROPERTY, BUT THERE'S NOT BEEN DEVELOPMENT ON 'EM.
I MEAN THEY EQUATE TO LIKE $73 FOR US MM-HMM
AND THEN, UM, OKAY, SO THAT'S FROM THE PROPERTY TAX, RIGHT? THAT'S FROM THE IMPROVEMENT OF THE PROPERTY TAX RULES? CORRECT.
SO GOING TO THE CAPITAL IMPROVEMENT PROJECTS, LIKE FUNDING THAT PORTION, THAT'S ONLY FROM THE BUSINESS PERSONAL PROPERTY, CORRECT.
FUND, WHATEVER IT'S CALLED 38.
THE ONLY THING FUND 38 RIGHT NOW IS SCHEDULED TO DO IS REIMBURSE THE UTILITY FUND FOR, SORRY, FOR A PORTION OF TIME.
AND THEN, UM, CAPITAL IMPROVE MEMBER, WELL JUST CLARIFICATION.
SO ONCE THEY, ONCE IT COMES, ONCE IT, I GUESS THE BUSINESS PERSONAL PROPERTY AS IT INCREASES, WE'LL THEY'LL START COLLECTING THE ABATEMENT 50% OF, I GUESS, CORRECT.
YOU KNOW WHAT, WHATEVER THEIR NUMBER IS, RIGHT? CAN THEY GO, CAN THEY, I DON'T KNOW IF THIS IS A LEGAL QUESTION.
BUT CAN THEY GO BACK AND BACKTRACK AND GET THE HALF OF THE 40 FROM THIS YEAR? SO COULD THEY COLLECT, YOU KNOW, THE 20 I WOULD SAY, HEY, JUST ADD IT.
WHAT IS THAT? BUT I CAN ASK DOTTY.
OR IF IT'S JUST ONE OF THOSE LIKE, WE'RE GONNA PASS IT UP, YOU KNOW, SO OUR FUND REALLY IS AT 20 CURRENTLY, I SUPPOSE MM-HMM
[00:30:01]
IMPROVEMENTS.AND THEN, UM, I GUESS ANOTHER UH, LEGAL QUESTION FOR DOTTIE IS JUST LIKE HOW, SO THERE JUST THE WHOLE BPP, THAT PROPERTY TAX LIKE ELIMINATION POTENTIALLY IN THE FUTURE, WOULD THIS STILL, YOU KNOW, STILL BE A LIVING THING KIND OF LIKE GRANDFATHERED IN, CONTINUE ON OR IS IT THE, THE LINE IN THE SAND IS DRAWN AND THEN THERE WOULD ACTUALLY BE NO REVENUES RIGHT.
IF THAT BUSINESS PERSONAL PROPERTY TAXES ELIMINATED AT THE STATE LEVEL.
SO JUST, JUST CURIOUS ABOUT FUTURE CIP FUNDING 'CAUSE IT'S KIND OF A SCARY CLIFF.
YOU KNOW,
AND A GOOD, GREAT REVENUE SOURCE.
BUT I MEAN OBVIOUSLY WE DON'T KNOW WHAT WE DON'T KNOW.
BUT I GUESS, YOU KNOW, JUST LOOKING INTO WHATEVER THE CONTRACTS WERE AND HOW THAT MIGHT PLAY INTO THINGS, SO, OKAY.
THAT, THAT REMINDED ME OF ANOTHER QUESTION I FORGOT TO WROTE.
WRITE DOWN, UM, ON THE PROJECTIONS FOR, FOR THIS FUND 38 CONTRIBUTION ON THE PROJECTIONS FOR THAT I UNDERSTAND WE'RE GO BASICALLY GOING OFF OF WHAT THEY TOLD US AND SO ON, DO WE HAVE ANY IDEA IF THEY KIND OF FORECASTED IT, FORECASTED OUT THEIR ASSET DEPRECIATION? BECAUSE I KNOW THAT'S A THING.
SO THEIR VALUE MAY NOT ACTUALLY GO UP AS FAR AS THIS GOES.
IT MAY GO DOWN, BUT WE WOULD NEED THEIR PROJECTIONS OF ON THAT BECAUSE I KNOW, YOU KNOW, LIKE A SERVER DOESN'T HAVE AN INFINITE LIFESPAN.
IT'S GOT LIKE A FIVE YEAR, FIVE YEAR LIFE CYCLE TYPE THING.
BUT THE DEPRECIATION PROBABLY IS LIKE A FIVE DAY YEAR.
ALBERTA, I THINK IT RENEWS EVERY THREE YEARS.
LIKE THEY REPLENISH THEIR EQUIPMENT EVERY THREE YEARS THAT I'M SAYING.
SO THAT DEPRECIATION ON THE EQUIPMENT IS PROBABLY FIVE TO EIGHT YEARS, BUT PROBABLY LESS TECHNOLOGY THAN IS THINK KEEPING UP WITH THE JONESES.
THEY NEED TO REPLACE THEIR EQUIPMENT EVERY TWO YEARS.
PROBABLY, RIGHT? I WOULD SAY TWO TO THREE, FIVE.
SO I'M DEPRECIATION IT'S GONNA, YOU'RE GONNA GET VALUATION AND A LITTLE DIP AND THEN MORE VALUATION AND A LITTLE DIP.
AND I THINK THE APPRECIATION FROM THE NEW TECHNOLOGIES EVERY TWO TO THREE YEARS IS GOING TO KEEP THE SLOPE VERY POSITIVE.
I, AND THAT'S WHAT I'M HOPING FOR.
I I ALSO WANT TO BE COGNIZANT OF, HEY, THEY'RE NOT LIFE CYCLING OUT THEIR SERVERS AND NOW WE'RE GETTING LESS.
BUT I THINK THAT RIGHT, RIGHT NOW WE'RE OKAY BECAUSE IF THAT'S A DECISION, THEY'RE RAMPING UP EVEN THOUGH IT'S, IT'S GETTING OLDER.
IF, IF THEY KEEP RAMPING UP AND KEEP REPLACING THEIR STUFF AS THEY SHOULD TO STAY COMPETITIVE MM-HMM
I THINK THEY BUY MORE NEW ONES FOR BUILDING THREE TO REPLACE THOSE MM-HMM
TWO TO THREE TIMES AS OFTEN AS THEY'RE DEPRECIATING OR TURNING OVER THAN BUILDING ONE OR TWO.
AND I DEFINITELY HOPE THAT'S THE CASE.
I HOPE THAT THEY'RE NOT SITTING ON 'EM, BUT I WAS JUST WONDERING IF ANYBODY HAD ANY SENSE OF WHAT THEY WERE DOING IN GIVING US THESE PROJECTIONS.
I THINK IT'S JUST KIND OF A LEARNING CURVE AS FAR AS LIKE FINANCIAL FROM LIKE THE, YOU KNOW, TAX COLLECTOR, RIGHT.
OR WILLIAMSON COUNTY, RIGHT? YEAH.
SO IT'S GONNA BE LIKE THIS UNTIL WE GET INTO A GOOD GROOVE AND THEN 10 YEARS DOWN THE ROAD, WE'LL PROBABLY KNOW HOW, HOW IT WORKS OUT.
THEN HER BUDGET WILL BE ON POINT, HER BUDGET WILL ALWAYS WE'LL KNOW EXACTLY WHAT WE'RE DOING.
IT, IT WAS JUST, WE THINK ABOUT IT A QUESTION THAT WAS BEFORE THEM RATTLING AROUND LIKE, HMM, ARE THEY GOING TO, ARE THEY GONNA KIND OF SAY, HEY, WE DON'T WANT TO PAY TAXES SO WE'RE NOT GONNA LIFECYCLE OUR STUFF.
NO, IT'S NOT A GOOD BUSINESS DECISION AS FAR AS I'M CONCERNED, BUT YEAH.
NO, NO, BUT THANK Y'ALL FOR YOUR WORK ON THIS AND THE, THE DETAILS OF JUST THE PROPERTY, YOU KNOW, DIFFERENCES, THE, THE VALUE TAXABLE VALUE, THE INCREMENT, RIGHT, THE, THE CHANGE RIGHT.
'CAUSE THAT'S WHAT WE'RE OPERATING OFF OF, RIGHT? SO MM-HMM
CAN WE GET A MOTION ON THIS? OH YES I DID MOTION.
SO YES, I WILL ENTERTAIN A MOTION ON 3.1 UNLESS, UH, SORRY JIM, DID YOU HAVE ANYTHING? NO, NO.
MOTION TO APPROVE THE TAX INCREMENT REINVESTMENT ZONE TURNS THREE.
UH, BUDGET FOR FY 26 27 SECOND.
I HAVE A MOTION BY COMMISSIONER LAR AND A SECOND BY COMMISSIONER MORRIS.
ANY DISCUSSION ON THE MOTION? OKAY.
MOTION PASSES THREE ZERO AND WE'LL REACH OUT TO DOTTIE AND GET, ADDRESS THOSE QUESTIONS AND ONCE WE GET A RESPONSE WE'LL SEND IT OUT TO YOU MM-HMM
OR ANSWER THEM AT THE NEXT MEETING THAT
[00:35:01]
WE HAVE TO REPEATOR THAT TOO, THE NEXT MEETING.
SO ITEM FOUR IS FUTURE AGENDA ITEMS. I DO NOT REMEMBER IF WE DO A YEARLY CHAIR ELECTION.
WE DIDN'T LAST YEAR, BUT THAT WAS MY FIRST MEETING, SO I DON'T KNOW MM-HMM
I GUESS I THINK THAT, WELL I'LL TAKE AS A KIND OF AN FOR SUBCOMMITTEE FOR CITY COUNCIL IS I'M GONNA GET THE ORIGINAL DOCUMENTS FORT THREE TO SEE IF IT'S SEVEN, WHAT IS DEFINED TO THE QUO, ANYTHING LIKE THAT.
AND I WORK WITH DOTTIE ON THAT AND THEN I CAN PROVIDE THAT TO STAFF PRIOR TO THAT SO WE CAN GET THAT INFORMATION OUT AS SOON AS I GET IT.
AND I THINK THE ONLY THING IS, IS FUTURE AGENDA ITEMS IS TO, I THINK WE NEED TO VERIFY THIS MEETING RIGHT.
IF, IF IT'S, IF THERE IS ISSUES OR THINGS THAT WE NEED TO, THAT NEED TO WORK, UH, WORK OUT AGAIN AND TO CALL ANOTHER MEETING WHEN MM-HMM
WE ALL ARE AVAILABLE FOR THAT.
I, I WAS JUST, 'CAUSE I KNOW IT'S COMING UP ON UH, P AND ZI WAS LIKE, OH YEAH, IF, IF YOU'RE DOING A CHAIR ELECTION, THAT SHOULD BE ON THE NEXT RIGHT AGENDA.
WHO'S THE CHAIR? DAN RIGHT NOW? DAN? YES.
AND I'LL LOOK AT THAT DOCUMENT TO SEE WHAT, UH, WHAT OFFICERS ARE LOOKING AT AND STUFF LIKE THAT.
COULD I GET A COPY OF THIS? NOT TODAY, BUT WHENEVER THE POWERPOINT THAT YOU PRESENTED MM-HMM
AND ACTUALLY BEFORE WE ADJOURN, CAN WE SCROLL BACK TO THE CHANGED, UH, DOLLAR AMOUNT? I DID NOT WRITE THAT DOWN.
SO THAT WAS 42 4 26, IS THAT RIGHT? UH, YOU TALKING ABOUT ON THE, ON THE BPP, THE NEW FUND.
YEAH, IT'S 40 40 2040 2 4 2 7.
ALRIGHT, WELL THEN IF THERE'S NOTHING ELSE, I THINK WE ARE DONE.
SO WE WILL ADJOURN THIS MEETING OF TS BOARD THREE AT 6:47 PM.