Aug 24, 2022 Board Budget Workshop #3

[1. Invocation / Pledge of Allegiance;]

[00:00:07]

>> WELCOME TO WOODLANDS BUDGET WORKSHOP NUMBER 3.

WE DON'T HAVE A PASTOR SIGNED UP FOR A CONVOCATION.

IF ANYBODY WANTS TO GIVE ONE WE ARE OPEN FOR VOLUNTEERS.

>> LET'S PRAY. GOOD MORNING.

HEAVENLY FATHER, WE ARE GRATEFUL TO COME IN YOUR PRESENCE AS YOUR PEOPLE AND AS THE SONS AND DAUGHTERS OF THE KING.

WE ASK YOU CONTINUE TO POUR YOUR SPIRIT INTO OUR LIVES AND EMPOWER US AND EMPLOY US FOR YOUR MINISTRY AND FOR YOUR GLORY AND FOR THE WORK OF YOUR KINGDOM.

THANK YOU FOR EVERY PERSON GATHERED AND FOR WHO YOU CREATED THEM TO BE AND FOR WHO YOU CALLED THEM TO.

WE ASK YOU GIVE THEM A SPIRIT OF WISDOM SO WE CAN CONTINUE TO DISCERN YOUR WILL AND WAY FOR OUR LIVES BOTH INDIVIDUALLY AND COLLECTIVELY. BE WITH US NOW AND BE WITH OUR LOVED ONES WHEREVER THEY ARE IN THE WORLD.

WE ASK YOUR PROTECTION BE UPON THEM AND UPON OUR CHILDREN AND OUR EDUCATORS AND OUR TEACHERS IN SCHOOL RIGHT NOW.

WE ASK YOU GUARD THEM WITH YOUR ANGEL ARMIES.

WE PRAY THIS IN THE NAME OF JESUS.

>> AND NOW THE PLEDGES TO OUR FLAGS.

>> PLEDGE UH -- ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA. AND TO THE REPUBLIC FOR WHICH IT STANDS, ONE NATION UNDER GOD, INDIVISIBLE WITH LIBERTY AND JUSTICE FOR ALL. HONOR THE TEXAS FLAG.

I PLEDGE ALLEGIANCE TO THEE, TEXAS, ONE STATE UNDER GOD ONE,

AN INDIVISIBLE. >> THIS MEETING WAS POSTED 72

[2. Call meeting to order;]

I WILL NOW TAKE ROLE. DIRECTOR BROWN.

>> HERE. >> DIRECTOR MILL NEAR.

>> HERE. >> DIRECTOR NELSON.

>> HERE. >> DR. SNYDER.

>> HERE. >> I AM HERE SO WE HAVE 6 OF THE

[3. Receive, consider and act upon adoption of the meeting agenda;]

AGENDA. >> SO MOVED.

>> DO WE HAVE A SECOND. >> SECOND.

>> ALL IN FAVOR SAY I. >> I.

>> ANY OPPOSED? WE HAVE OUR AGENDA ADOPTED.

WE DON'T HAVE ANY PUBLIC OFFICIALS WHO HAVE SIGNED IN FOR RECOGNITION AND WE DO NOT HAVE ANYBODY ON OUR PUBLIC COMMENT

[6. Receive, consider and act upon the 2023 Preliminary Budget for The Woodlands Township;]

>> IT IS GETTING LATER IN THE WEEK WHERE MONIQUE IS GETTING CLOSER TO THE DESK INSTEAD OF WALKING THE LENGTH OF THE

BOARDROOM. >> JUST TRYING TO BE EFFICIENT.

THAT'S RIGHT. GOOD MORNING, EVERYONE.

TODAY WE ARE GOING TO HOPEFULLY CONCLUDE OUR DISCUSSION ON THE BUDGET INITIATIVES AND AT YOUR DIRECTION YESTERDAY, CHRIS NUNES WENT BACK AND LOOKED AT THE NEEDS PROJECT AND PRIORITIZED THOSE INTO DIFFERENT GROUPS AND THAT IS WHAT HE IS PLANNING TO PRESENT TO YOU TODAY. IN FRONT OF YOU IS A -- THERE'S TWO 11 BY 17 DOCUMENTS. ONE IS A LIST OF THE DIFFERENT PROPBLG STKWREBGT -- PROJECTS THAT DR. NOONES IS GOING TO TALK ABOUT, BUT HE HAS A POWER POINT PRESENTATION TO WALK YOU THROUGH, AND THE OTHER IS A LIST OF WHERE WE STAND RIGHT NOW IN TERMS OF OUR DIFFERENT RESERVE BALANCES AND FUND BALANCES.

THAT'S THE TWO-PAGE SHEET. YOU HAVE THE ITEMS SHADED IN GREEN AND THOSE ARE THE ONES THAT THE BOARD APPROVED YESTERDAY, AT LEAST ON A TEMPORARY BASIS.

THE ONES IN RED ARE NOT APPROVED AND THE ONES IN WHITE ARE THE ONES THAT ARE STILL PENDING DECISIONS FROM THE BOARD OF DIRECTORS. AT THE BOTTOM OF THE SECOND PAGE IS A LIST -- IT IS THE BALANCES THAT ARE IN EACH OF THOSE RESERVES. HOWEVER, I'M GOING TO PUT A CLARIFICATION ON THAT. THAT ASSUMES SOME OF THE RESERVE ALLOCATIONS THAT I MADE UP AT THE TOP OF THE FIRST SHEET WHICH ARE JUST SUGGESTIONS AT THIS POINT, JUST SOMETHING FOR THE BOARD TO CONSIDER INSTEAD OF HAVING A BLANK SLATE IN FRONT OF YOU, THEY ADDRESSED WHAT YOU TALKED ABOUT YESTERDAY IN TERMS OF A PRIORITY OF GETTING THE OPERATING RESERVE BALANCE AT A BALANCE OF 25% MINIMUM, A GENERAL OPERATING FUND EXPENSE AND THEN CREATING A FUND, IF YOU WILL, A POT OF MONEY FOR THE FIRE DEPARTMENT PROJECTS AT $10 MILLION AND THEN WHAT IS LEFT OVER IN ORDER TO FUND PARKS AND RECREATION PROJECTS.

AFTER DR. NUNE -- AFTER DR. NOONES, PRESENTATION WE CAN TALK ABOUT THOSE AND HOW TO ALLOCATE THOSE FUNDS.

I JUST WANTED TO GIVE YOU SOMETHING TO START OFF WITH.

[00:05:04]

>> THANK YOU, MONIQUE. >> THANK YOU.

>> THANK YOU VEY MUCH, CHAIRMAN BUNCH AND BOARD OF DIRECTORS.

THE LAST 24 HOURS, I SPENT A FAIR AMOUNT OF TIME REVIEWING WHAT IS INCLUDED IN THE PARKS AND RECREATION NEEDS ASSESSMENT.

AS YOU'RE AWARE, THERE'S A NUMBER OF DIFFERENT PROJECTS AND HAVE SOME DIFFERENT HIGH VALUE FROM A TOTAL COST.

WHAT WE TRY TO DO IS GO THROUGH EACH ONE OF THE INDIVIDUAL PROJECTS, FIND IF THERE ARE DEFICIENCIES AND FIND OUT WHERE THE PUBLIC -- WHERE THE PUBLIC BENEFIT IS.

SO THE PROJECTS YOU ARE GONNA SEE ARE BROKEN UP INTO WHERE THEY ARE A TOWN PARK, VILLAGE PARK OR AREA OR COMMUNITY PARK AND DISTRIBUTION ACROSS THE -- OF THE ASSETS ACROSS THE VARIOUS VILLAGES. THEY ARE ALL REALLY TIED INTO THE GOALS OF IDENTIFYING, ONE, LOOKING AT THE COMMUNITY ASSETS OVERALL, AND ALSO LOOKING AT THE VARIOUS IMPLEMENTATION THAT WE CAN DO FROM A TOURISM ASPECT OF DRAWING PEOPLE THROUGH THE USE OF OUR FACILITY. SO WHAT WE ARE GOING TO LOOK AT IS TOWN WIDE IMPROVEMENTS. LOOKING AT THE -- THERE IS A GROUP THERE AND THE -- PROBABLY THE MOST CHALLENGING FACILITY WE HAVE IS WHAT WE CALL THE BUNKER RESTROOM.

I YOU HAVE EVER BEEN AT THAT FACILITY IT IS A RESTROOM BELT IN A PW*UPLGER. -- BUNKER.

PEOPLE DON'T WANT TO GO IN THERE AND IT IS A CHALLENGE TO MANAGE.

WE DON'T KNOW FROM A STANDPOINT OF -- THERE IS NO DESIGN CRY TEAR -- CRITERIA, BUT IT IS A POT OF MONEY TO TRY TO SOLVE THE ISSUES. WHAT YOU SEE NEXT IS PROBABLY ONE OF THE MORE NEEDED AMENITIES THAT'S THE LED REPLACEMENTS.

THE LED TECHNOLOGY, I THINK WE HAVE TALKED ABOUT THE LED OVER THE YEARS. IT IS A MORE SOLID ROI AND WE SHOULD SEE ADDITIONAL COST SAVINGS IN THE ELECTRICAL ASPECT. AND A PLAYGROUND, THAT IS A SUCCESSFUL ONE, AND WE -- IT IS NICE WHEN YOU HAVE TWO CHILDREN AND ONE IS PLAYING SOCCER OR LACROSSE AND THE OTHER IS IN THE PLAY AREA. IN GOSLING WE ARE LOOKING AT LED REPLACEMENT AND TURFING FIELD 4. THAT IS THE LARGEST REMAINING GRASS FIELD. THAT WOULD ALLOW US TO -- ONE, IT WOULD ENHANCE THE USERS OF THE SOCCER GROUP, BUT IT IS A GREAT DRAW FOR ADDITIONAL TOURNAMENTS COMING INTO THE COMMUNITY. I WOULD PUT ONE CAVEAT THERE.

THAT'S AT THE 25-YEAR STPHRAOD -- FLOOD PLAIN AND WE HAVE TO DO ANALYSIS TO SEE IF IT CAN GO INTO TURF.

AND THEN FINALLY WE LOOK AT THE LARGEST PROJECT OF THIS GROUPING AND THAT'S THE ALDEN BRIDGE SPORTS PARK.

THIS IS NOT THE ENTIRE DOLLAR AMOUNT.

IT IS A PORTION OF IT. THE CHALLENGE IS WE HAVE TO SOLVE THE PARKING ISSUE. IF YOU DO THE PARKING I'M -- IMPROVEMENTS WE TAKE OUTFIELDS AND WE HAVE TO MAKE UP THE FIELDS SOMEHOW. WHAT I WILL SHOW YOU IN YELLOW/HIGHLIGHTED, IF YOU CAN SEE WHERE WE ADD ADDITIONAL PARKING WHERE CURRENT FIELD 4 IS AND THE TOP OF FIELD 5 IS GOING FROM, YOU WOULD SEE EAST AND THEN HIGHLIGHTED IN YELLOW, WE DON'T KNOW IF WE CAN HAVE AN ACCESS POINT TO THE OTHER PROPERTY THAT IS OWNED BY HOWARD HUGHES, THE DEVELOPMENT COMPANY, BUT WE CAN FIGURE OUT A TURN AROUND THERE IF WE WERE ABLE TO GET AN AGREEMENT IN PLACE. THEN WHAT WE DO IS LOOK AT PUTTING PARKING AROUND THE BASEBALL/SOFTBALL FIELDS.

THAT WOULD BE A REALLY GOOD THING.

PEOPLE WANT TO PARK CLOSE TO THEIR FACILITY.

HOPEFULLY THIS WILL MITIGATE AND MANAGE THE LARGER CONCERN OF PARKING ON 242. THE SAYING WE TALKED ABOUT IS WE

[00:10:02]

I MEANT TO LOOK AT THIS THIS MORNING.

ALSO INCLUDED THIS IS THE RESTROOM FACILITY BY THE SOCCER FIELDS THAT WAS CITED AS A CONCERN BY THE BOARDS AND THE USER GROUPS, A PLAYGROUND AND YOU CAN SEE THE FIELD FURTHEST TO THE EAST IN YELLOW CONVERTED TO TURF AS WELL AS THE FIELD THAT IS THE FIRST ONE NEXT TO THE GRAY FIELD.

AND NOW WE ARE GOING WEST. AND IT WOULD BE CONVERTED TO TURF. THE ORIGINAL TWO FIELDS ARE TURF ALREADY. AND THEN WE WOULD GO INTO ADDING TURF TO TWO MORE FIELDS. THERE IS SOME SYNERGY THAT I REALIZED WHEN WE GET TO THE DESIGN OF THIS WE WILL BE GOING THROUGH THE TURF REPLACEMENT AT ALDON BRIDGE 1 AND 2 AND AS WELL AS 1, 3, 4 AND 5. THERE IS SYNERGY IN THAT PROJECT. THE OTHER FACTOR IS ALL OF THE FIELDS, INCLUDING THE BASEBALL FIELDS, WILL HAVE AN LED CONVERSION. LOOKING TO CONVERT THAT AND UPGRADE TO SAVE ADDITIONAL DOLLARS.

THAT IS OUR BIGGEST THING. AND YOU NOTICED TRAIL WAYS, PATHWAYS TO THE PARK COMING FROM EITHER NORTH GREEN BRIDGE OR ALDEN WOODS. WE ARE WORKING ON THE FINAL CONNECTION. WHAT WE ARE NOT DONE IS CONNECTING THE BASEBALL FIELDS TO ARTIFICIAL TURF AND WHAT WE WILL CALL FIELD FOUR AND FIVE. THOSE WOULD EXPAND THE FACILITY, BUT THEY COME AS AN COST. AS A REMINDER I MADE MENTION TAT WE HAVE A LOT OF WORK TO DO BEFORE ONE SHOVEL GOES IN THE GROUND. WE HAVE TO FURTHER EXPLORE THE FEASIBILITY. WHAT YOU ARE SEEING IS A CONSTANT POINT. WE NEED TO GET TO SOME MORE DETAILED SITE AM -- ANALYSIS OF WHAT WE CAN DO AND FURTHER REFINE THE PROBABLE COST THAT CAN BE DONE THE NEXT SEVERAL MONTHS FROM THAT. LOTS OF DETAIL THERE.

WE LOOK AT OUR VILLAGE PARK IMPROVEMENTS AND AGAIN WE GO BACK INTO LOOKING AT SOME OF THE NEEDS THAT HAVE BEEN BROUGHT FORTH TO THE BOARD OF PICKLEBALL AS WELL AS TENNIS.

W LOOK AT THE FACT THAT WE ARE IDENTIFYING ALDEN BRIDGE PARK FOR PICKLEBALL. THAT WAS INCLUDED IN THE MAP, THAT VISION PLAN FOR ALDON BRIDGE PARK.

MOST LIKELY ALDON BRIDGE WILL BE THE NEXT VILLAGE PARK AS RENOVATED THROUGH THE VILLAGE PARK PROGRAM.

WE GO TO FOREST GATE AND LOOKING TO ADDING TWO COURTS, PICKLEBALL OR TENNIS. AND WE WILL TALK ABOUT THE FLEXIBILITY OF THIS PLAN, IF THE NEED ARRIVES FOR FLEXIBILITY.

AND THEN WE START TO GO BACK INTO LOOKING AT THE WENTWOOD PARK AND THE TURF AND THE LED REPLACEMENTS THERE.

THE FINAL AREA IN FACES -- PHASE ONE IS FINAL PARK IMPROVEMENTS.

THERE ARE ABOUT FIVE REST -- RESTROOMS THAT ARE WHAT I WOULD CALL THE OLDER FREE-STANDING RESTROOMS. THOSE FACILITIES ARE C AND -- CNE BLOCK AND DATED FACILITIES AND WE SEE A LOT OF CONCERN FROM RESIDENTS GOING IN THERE.

THERE ARE VERY CLEAN STANDARDS, BUT ONE OF THE THINGS I REMEMBER IS ONE OF OUR CONTRACTORS -- ONE OF OUR PARK AND PATHWAY CONTRACTORS SAYING YOU TOLD US THEY WERE USED A LOT, BUT WE NEVER REALIZED IT. WHO WE RECEIVED IN THE SYSTEM IS X TIMES OTHER COMMUNITIES IN THERE.

THESE FACILITIES ARE USED -- THAT'S DUE TO YOU CONTINUALLY INVESTING MONEY. WE HAVE TO HIT THE BATHROOMS WHICH WAS A NEED. AND THEN WE GO INTO SOME OF THE THINGS OF DOG PARK, ADDING SOMETHING POTENTIALLY AT MAY VALLEY. THERE IS A PIPELINE THAT WE MAY BE ABLE TO USE THAT SPACE AND IT IS OPEN.

IT REDUCES A POSSIBLE CLEARING PERSPECTIVE.

LOOKING AT CAT TAIL OR CRANE BROOKE FOR A COMMUNITY GARDEN.

I SPOKE TO ANGEL NICKS AND THERE ARE 43 WAITING SPOTS IN THAT AND

[00:15:01]

IT ENHANCES THE PARKING GREATLY AS THE RESTROOM COMPLEX DOES SOME SAVINGS OF ELECTRICAL CONSUMPTION AND WATER CON UM -- CONSUMPTION WITH THE TURF FIELDS.

AND THEN GETTING INTO SOME OF THE TENNIS, PICKLEBALL PARKING -- PICKLE PICKLEBALL PARKS AS WELL.

WHAT WE ARE LOOKING AT IS A PROJECT DURATION OF THREE PLUS YEARS. ALDON BRIDGE WOULD TAKE A LOT OF TIME. WHERE THE FLEXIBILITY COMES IS WHEN WE START IDENTIFYING IF WE PUT ON ALDON BRIDGE AND YOU HAVE ON THE BOOKS -- IF IT STARTS AND THERE IS A LEVELING OUT OF NEEDS AND DEMANDS BY OUR RESIDENTS, I COMING BACK OR JOHN MCGOWAN COULD COME BACK AND SAY WE DON'T NEED TO PULL THE PLUG ON ANOTHER ARTIFICIAL FIELD. WE CAN REALLOCATE THAT MONEY WITH BOARD APPROVAL WITH SOME OF THE OTHER AMENITIES THAT ARE NOT BEING DONE IN THIS ROUND. THIS IS A PLAN.

THE PLANS ARE ABLE TO BE MODIFIED.

THE OTHER THING IS TO EXPEDITE THESE PROJECTS.

LOOKING AT CO-OP PURCHASING AND THE CURRENT CONTRACTORS THAT ARE ALREADY UNDER CONTRACT. YOU AS A BOARD APPROVED -- WHEN WE -- YOU APPROVED, WHEN WE BUILT GOSLING A BUY BOARD CONTRACT FOR THE USE OF LIGHTS AS THE OVERALL CONSTRUCTION PROJECT. THAT WILL SAVE TIME AND SAVE DOLLARS. THE OTHER TWO IS THIS IS A LARGE SUM OF PROJECTS FOR ANY GROUP OF STAFF.

RIGHT NOW THE PROJECT MANAGEMENT GROUP IS ONE PERSON WITH OUR PROJECT MANAGER. SHE DOES A PHENOMENAL JOB.

SHE BRINGS THE CREATIVE DESIGNS FOR THE PLAYGROUNDS AND DOES THE BRIDGEWORK REPAIRS. BUT WE ARE TALKING ABOUT ADDING A LOT MORE WORK TO THAT GROUP IN ADDITION TO THE GROUP THAT IS APPROVED BY THE BOARD AS WELL AS PATHWAY EXTENSION WE WILL BE REQUESTING IF SOME LEVEL OF THIS PACKAGE IS A PROJECT SUPERVISOR -FPLD. THE PROJECT SUPERVISOR WAS IN THE FIVE-YEAR PLAN FOR THE BUDGET.

BEFORE I GO INTO PHASE 2 IS OPEN UP FOR ANY QUESTIONS YOU MIGHT

HAVE. >> I HAVE A COUPLE.

NUMBER ONE, FOR A PROJECT THIS SIZE, DID YOU CONSIDER HIRING A PROJECT MANAGEMENT FIRM? IT'S TOO BIG AND TOO INTENSE TO BE DOING THIS IN HOUSE. IF YOU ARE LOOKING AT A THREE-YEAR DURATION TO MANAGE ALL THIS STUFF, YOU WOULD BE VERY WELL SERVED IN HIRING A PROFESSIONAL MANAGEMENT FIRM TO DO THAT. THE SECOND THING IS, WE SHOULD CONSOLIDATE ALL OF THESE LED LIGHT RETROFITS AND GO AFTER A LEAD GRANT WITH THE FEDERAL GOVERNMENT BECAUSE THEY WOULD FUND A SIGNIFICANT PORTION OF THAT.

WE JUST REDID THE RAMP LIGHTING AT IHH AND THE FEDERAL GOVERNMENT PAID FOR 50% OF IT AND THE PAY BACK IS LESS THAN FIVE YEARS. I THINK THERE IS REAL SAVINGS THERE. A NITPICKY POINT ON THE FIRST SLIDE ON ALDON BRIDGE PARK, THE PROPOSED DEAL, ADDITIONAL PARKING, I THINK YOU SHOULD CONSIDER LOSING THE PARKING IN THAT ONE SECTION WHERE YOU ARE COMING OFF THE DRIVE FROM THE BASEBALL FIELDS AND HEADING TOWARD 242, YOU SHOULDN'T HAVE PARKING ON BOTH SIDES IN THAT FIRST SECTION.

JUST PARK ON ONE SIDE TO GIVE YOU MORE ROOM TO GET TRAFFIC

THROUGH THERE. >> I SEE WHAT YOU ARE SAYING.

>> AND SO I WOULD -- YOU MAY LOSE A FEW SPOTS IN GAINING THE ONES AROUND THE BASEBALL PARK. OBVIOUSLY, WHILE IT WOULD BE GREAT TO HAVE AN EXTENDED EXIT ON THE EASTSIDE THERE IS NO REASON YOU COULDN'T HAVE A STOP SIGN AND A DIRECT 90-DEGREE EXIT THAT WOULD STILL BE WITHIN THE BOUNDARIES OF THE FACILITY.

YOU JUST NEED THE EASE MEANT ACCESS TO PUT THE ROAD IN.

[00:20:01]

>> I SEE WHAT YOU ARE SAYING. >> BUT THIS IS A GREAT PLAN.

THAT'S ALL I REALLY HAVE. >> IF YOU VERY MUCH FOR POINTING OUT THE LED GRANT. ONE OF THE CHALLENGES -- WE WILL DEFINITELY EXPLORE IT. ONE OF THE CHALLENGES IS U.N WITH OF THE DIFFERENCES -- ONE OF THE DIFFERENCES IS THOSE ARE ON SUN UP TO SUN DOWN. OURS ARE ONLY ON THREE TO FOUR HOURS SO THEY DON'T MEET THE THRESHOLD.

ONE OF THE THINGS WE WORKED ON FOR THIS BUILDING AND SOME OF THE OTHER BUILDINGS IS ATTRACTING REBATES.

THERE ARE OTHER FORMS THERE TOO. >> AND IN ACTUAL FACT THE FORMULA WORKS IN A WAY THAT IT IS CUMULATIVE HOURS.

BECAUSE YOU ARE TALKING ABOUT AN ENORMOUS EXPANSE OF TERRITORY YOU ARE ILLUMINATING IT IS HOURS AND ACREAGE.

THE RAMP LIGHTING, YES, IT IS DAWN TO DUSK, BUT IT IS IN A FAIRLY SMALL AREA, BELIEVE IT OR NOT.

THE RAMP BEHIND TERMINAL D IS THE SIZE OF FOUR FOOTBALL FIELDS. THAT'S IT.

IT IS NOT THIS HUGE AREA YOU THINK IT IS.

THE REASON FOR THAT -- FRANKLY, THE REASON FOR THAT IS LIGHT IS REALLY GOOD CLOSE TO THE BUILDING, BUT IT IS NOT GOOD IF THE AIRFIELD. THAT'S WHY YOU DON'T SEE A TON OF LIGHTING ON THE ROADWAYS. HERE, AS THEY SAY, WITH THE ACREAGE THAT YOU ARE TALKING ABOUT ILLUMINATING, I THINK YOU

WOULD GET FAVORABLE TREATMENT. >> WE WILL CERTAINLY

INVESTIGATE. >> I ALSO THINK THIS IS AN EXCELLENT PLAN. I HAVE A COUPLE OF QUESTIONS.

THE TWO GRASS FIELDS THAT WE WOULD POTENTIALLY LOSE, AND YOU KNOW HOW I FIELD ABOUT GRASS FIELDS, BUT I UNDERSTAND.

ARE THEY CURRENTLY 120 YARDS BY --

>> NO. EXCUSE ME.

HOW WOULD I SAY THIS? THE FIELD FOUR WHICH IS RIGHT AROUND WHERE THE WORD PARKING IS , THAT IS A SMALL FIELD.

DIMENSIONS OFF THE TOP OF MY HEAD ARE NOT COMING TO ME.

HOWEVER, IT IS NOT A FULL SIZED SOCCER FIELD.

WE ARE VERY MUCH CHALLENGED TO GET A LACROSSE FIELD BECAUSE THAT'S WHAT I DEAL WITH THE MOST BECAUSE OF MY KIDS, BUT IT MAINLY SERVES AS A PRACTICE LACROSSE FIELD WHEN THE GAMES ARE DOWN ON FIELD 1 AND 2. FIELD 5, THE WAY IT WAS DESIGNER WHEN WE DID THIS IT WAS TO GET SPACE IN THE GRASS.

WE WERE HEMORRHAGING. WE HAD SOME SETBACKS FROM THE PIPELINES THAT WE HAD TO NAVIGATE THERE.

FIELD 5 WASMENT TO BE A VERY -- FIELD 5 WAS MEANT TO BE A VERY LONG FIELD TO GET THE SMALLER SOCCER GROUPS TO PRACTICE ON THAT FIELD. WE WILL PROBABLY END UP HAVING TO MOVE A FEW LIGHT POLES FURTHER -- FULLER TO THE EAST.

>> THE TWO NEW FIELDS YOU ARE REPLACING ARE TURF FIELDS AND THEY WILL BE FULLY FUNCTIONAL AND THE OTHERS WERE NOT? THAT WILL INCREASE GAME DAY CAPACITY?

>> IT INCREASES GAME DAY CAPACITY.

THE CAPACITY IS THE SAME. WHEN THE BOARD STARTED GOING DOWN THE ROAD IS THE RELIABILITY.

NOW THAT YOU ARE NOT WORRIED ABOUT IT IS 4:00 AND AM I GETTING THE CALL FROM THE COACHES BECAUSE IT RAINED AND THE TOWNSHIP IS CLOSED FOR THE FIELDS.

YES YOU WILL HAVE PRACTICE UNLESS THERE IS LIGHTNING AND THAT IS THE STANDARD NOW. THAT IS A STANDARD THAT'S BEEN WELL RECEIVED BY RESIDENTS. THEY THOUGH THEY WILL HAVE PRACTICE WHEN THEY ARE SLATED FOR ALDON BRIDGE, GOSLING.

>> PROBABY A DUMB QUESTION, BUT DO WE HAVE LIGHTNING DETECTION

EQUIPMENT AT THE PARKS. >> NO, WE DON'T.

WE ASSIGN THAT RESPONSIBILITY TO THE CLUBS.

>> MIGHT BE WORTH WHILE CONSIDER IT.

>> WE'LL LOOK INTO IT. >> FROM A LIABILITY STANDPOINT, IF THE HORN GOES OFF, YOU HAVE TO STOP.

>> IT IS A WILDLY AND HOTLY DEBATED TOPIC IN THE PARKS AND RECREATION CIRCLE WHETHER YOU HAVE IT OR NOT BASED ON -- AND THE TECHNOLOGY HAS GOTTEN A LOT BETTER THAN IT WAS YEARS AGO.

YEARS AGO IT WAS THESE THINGS WERE GOING OFF LEFT AND RIGHT

[00:25:01]

>> AND MAKE SURE TO TURN THEM OFF AT NIGHT.

>> DR. NOONES, WHAT I HAVE APPRECIATED I KNOW AT ONE POINT IT WAS BROUGHT TO US REGARDING A PARKING GARAGE AT THE ALDON BRIDGE SPORT PARK. THE CIRCULAR PARKING AROUND THE BASEBALL FIELD REALLY IS A WONDERFUL ALTERNATIVE.

IS THE PARKING -- WILL IT ALLEVIATE THE PARKING ON 242

WITH THIS? >> I WILL NEVER SAY NEVER ON THAT ASPECT. YOU ARE TALKING ABOUT THE HUMAN CONDITION. THE HUMAN CONDITION IS --

>> GRAB IT. >> I'M GONNA BE EASY BECAUSE I WANT TO GET IN AND OUT INSTEAD OF MAKING AVAILABLE PARKING.

I KNOW AS A FREQUENT USER OF THAT PARK THAT DEPENDING ON THE EXACT TIME I GO THERE, THERE'S PARKING SOMETIMES UP AND DOWN AND I CAN FIND SPACES. HOWEVER, THAT'S BECAUSE WE'VE CONDITIONED PEOPLE, AS DIRECTOR REECE -- RAO*ERS -- REISER SAYS, BUT WE DON'T PARK BECAUSE THERE ARE AVAILABLE SPACES.

>> POINT TAKEN. WHEN I HAVE GONE TO ATTEND GAMES, IF I'M RUNNING LATE I WILL PARK ON 242 BECAUSE I MAY NOT BE ABLE TO FIND A PARKING SPOT INTERNATIONALLY.

>> RIGHT. YOU CAN ALWAYS PUT NO PARKING SIGNS OUT THERE AS WELL. THERE IS ALSO ANOTHER THING YOU WANT TO THINK ABOUT ESPECIALLY FOR THE BASEBALL PARKING AREA, THERE IS VERY COST EFFECTIVE SENSOR EQUIPMENT YOU CAN PUT IN THAT AREA THAT WILL SAY, YOU KNOW, WE HAVE 40, 50 SPOTS AVAILABLE. IT IS A LOT BETTER THAN IT USED TO BE AND IT IS A LOT CHEAPER THAN IT USED TO BE AND IT IS SOMETHING WE MIGHT WANT TO CONSIDER FOR THE AREA BECAUSE OF THE LENGTH OF THE DRIVE AROUND THERE AND COMING BACK OUT AGAIN.

>> WE DID LOOK AT THAT ABOUT TWO OR THREE YEARS AGO AND THE PRICES WERE A LITTLE TOO RICH FOR US AT THAT TIME.

IF WE ARE PUTTING IT INTO SOMETHING LIKE THIS, IT MAY MAKE

IT MORE -- >> I THINK IT WOULD BE REALLY USEFUL IN TERMS OF MANAGING THE FACILITY.

YOU HATE TO SPEND ALL THIS MONEY AND PUT PARKING SPACES IN AND PEOPLE GOING I'M RELUCTANT TO GO LOOK.

>> HAVE YOU TALKED TO TXDOT AND BY THE WAY, TXDOT, IF YOU ARE LISTENING, DIRECTOR RIESER IS JOKING.

HE DOES NOT WANT NO PARKING SIGNS ON 242 NEAR THE ALDON BRIDGE. DID YOU TALK ABOUT YOUR PLANS -- I KNOW THESE ARE FRESH, BUT WILL YOU IF YOU HAVEN'T?

>> WE WILL MAKE THEM AWARE. IF THIS IS UH -- APPROVED, THERE WILL BE CONSTRUCTION ACCESS AND WE WILL NEED TO MAKE FOLKS AWARE. THERE ARE OTHER THINGS GOING ON AS YOU KNOW ON THE 242 CORRIDOR WHETHER IT IS EXPANDED OR NOT AND WHETHER THE AREA TO THE WESS USED FOR A RETENTION POND OR NOT AND CAN WE INCORPORATE THE DETENTION POPPED INTO THE PARK FROM 1488. WE HAVE A GOOD LINE OF

COMMUNICATION. >> THE POINT I'M MAKING IS, NO, I DON'T WANT THEM TO DO IT. THE POINT IS THEY COULD DO IT.

THEY DON'T HAVE TO HAVE OUR PERMISSION TO DO IT.

THAT'S MY CONCERN. ULTIMATELY, IF THIS BECOMES A BIG ENOUGH TRAFFIC HAZARD AND IF WE GO THROUGH AND WIDENING OUT, IT MAY NOT BE NO PARKING, BUT I WOULDN'T BE SURPRISED TO SEE

EMERGENCY STOPPING. >> IF WE LOSE THE SHOULDER, THAT

WOULD BE A DISASTER. >> THERE ARE A LOT OF VARIABLES HERE ONE OF THE REASONS WE ARE CONCERNED ABOUT THE PARKING LEVELS IS BECAUSE OF THAT. IT IS THIS PRACTICE OF PARKING ON THE SHOULDER OF 242 MAY BE ELIMINATED.

AS SUCH, WE HAVE A HUGE INVESTMENT IN THE SPORTS FIELD COMPLEX AND WE NEED TO BE ABLE TO PARK PEOPLE THERE.

>> ALL RIGHT. SO YOUR RECOMMENDATION RIGHT NOW IS TO SET ASIDE CAPITAL FOR PHASE 1 OF THESE CONSOLIDATION

OF PROJECTS? >> YES, SIR.

>> AND CAN YOU REMIND EVERYBODY WHAT WE ALREADY APPROVED THROUGH THE FIRST TWO DAYS OF OUR BUDGET CYCLE BECAUSE WE HAD SOME BARE BRANCH AND OTHER PROJECTS WE GREEN LIGHTED.

[00:30:02]

>> I WILL GO OFF THE TOP OF MY HEAD.

YOU HAD ABOUT $1.2 MILLION FOR THE QUIRK AND -- KIRK AND ALL PATHWAY EXTENSION. YOU ALSO HAD --

>> SORRY, CHRIS. >> YOU ALSO HAD ABOUT $3 MILLION FOR THE BEAR BRANCH PARK. 1.5 WAS THE AWNING OVER THE RINK AND BATTING CAGE AND EXTENDED PARKING.

AND THEN YOU ADDED ANOTHER $1.5 MILLION FOR A LAZY RIVER.

AND THEN THERE WAS DISCUSSION ABOUT A DOG PARK LIGHTS WHICH

WAS $120,000. >> THE SHEET HERE SHOWS 14,000,869,000 -- $14 MILLION 869.

I AM ASSUMING THESE ARE FIGURES FROM YESTERDAY AND THIS IS NOT TAKING THE PROJECT HERE INTO ACCOUNT.

>> NO. >> YOU ALREADY HAVE RIGHT NOW IN THE PARKING -- PARKS AND REC CAPITAL PROJECT A TOTAL OF

20 MILLION 069, 041. >> SO 5.2 MILLION OF THE NUMBER JUST SAID WAS FROM THE CAPITAL RESERVE FUND WHICH WAS BASICALLY TAKING IN THOSE PROJECT THAT'S YOU MENTIONED THAT WERE ALREADY IN THE REPLACEMENT PLAN OUT OF THE CAPITAL RESERVE.

14,000,869 WOULD HAVE BEEN FROM SOMEWHERE ELSE.

>> NORMALLY IF YOU LOOK ON THE LARGE SHEET, THE GROGINS MILL PROPERTY RESERVE AND YOU LOOK DOWN THOSE LIST OF PROJECTS, MOST OF THE CAPITAL YOU APPROVED YESTERDAY, THE OVERWHELMING MAJORITY IS COMING FROM THE GROBINSVILLE PROPERTY RESERVE.

YOU STARTED OUT WITH ABOUT 5.2 MILLION AND ALL BUT ABOUT 60,000 OF THAT WAS SPENT ON PROJECTS YESTERDAY.

>> SO WHERE IS THE -- DID YOU JUST TRANSFER MONEY FROM ANOTHER

-- >> THE 14 IS WHAT I WAS TALKING ABOUT EARLIER IN TERMS OF WHERE YOUR RESERVE BALANCES ARE, THESE ARE SUGGESTIONS ONLY OF HOW WE WOULD END UP FUNDING THE PROJECTS THAT DR. NOONES JUST PRESENTED.

>> YOU ARE LOOKING AT POTENTIALLY AS MUCH AS

$20 MILLION. >> RIGHT.

>> CAPITAL RESERVE AVAILABLE FOR THESE PROJECTS.

>> EXACTLY. >> I WOULD ASSUME THAT THIS WOULD BE -- WHEN YOU LOOK AT THIS, THAT THE CAPITAL WOULD BE SPREAD OVER AT LEAST TWO OR THREE YEARS.

>> YES, SIR. EXACTLY.

>> AND SO WITH THE BULK OF IT BEING SPENT IN THE MIDDLE YEAR

-- >> I WOULD AGREE.

>> WHATEVER WE DECIDE TO DO, I SUGGEST WE THINK ABOUT A 25%, 50%, 25% KIND OF A CAPITAL ALLOCATION NUMBER OR EVEN 20%, 60%, 20% SO THAT YOU KNOW WHERE THE HEAVY SPEND IS GOING TO

FALL. >> YES, SIR.

>> AND THAT WAY WE CAN -- AS I MENTIONED WE CAN LADDER OUT OUR INVESTMENTS TO MATCH THE CASH FLOW SO WE DON'T HAVE I'D FUNDS.

IDLE FUNDS. >> YES.

>> OKAY AND ON THE 10 NOTE I HAVE A QUESTION FOR THE TEXAS TREE VENTURE EXPANSION SINCE IT APPEARED YESTERDAY WE WERE IN CONSENSUS, THAT'S COMING OUT OF THE UNDESIGNATED FUND BALANCE?

>> THAT'S CORRECT AND THE HOTEL RESERVE.

>> YES. THAT IS COMING OUT OF THE HOTEL TAX RESERVE BECAUSE IT IS MORE OF AN ECONOMIC DEVELOPMENT

TOURIST TYPE OF PROJECT. >> WHAT MIGHT BE EASIER FOR ALL OF US SINCE THESE ARE LARGE AND DETAILED SPREAD SHEETS, MAYBE WE CAN TAKE A BREAK AND COLLAPSE THE ONES WE HAVE APPROVED OUT AND THEN GET DOWN TO JUST HERE IS WHAT WE HAVE LEFT IN CAPITAL POOL AND THEN HAVE THE REMAINING INITIATIVES AS ONES WE CAN TAKE ACTION ON. I THINK THAT'S WHAT IS KIND OF CAUSING -- I'M TRACKING IT, BUT EVEN AS MUCH AS I TRACK IT, I AM GRABBING AT STRAWS. I WILL APPROVE WHAT WE HAVE IN CAPITAL PROJECTS SINCE WE HAVE THE GREEN SHEET.

FIRE STATION 5 IS FUNDED FOR A REBUILD.

ANSON FUNDING FOR ETC IMPROVEMENTS.

HARRIS COUNTY CONSTABLE OFFICER AND CAPITAL, SMALL CUL-DE-SAC MAINTENANCE FOUR TIMES A YEAR WITH AN IN-HOUSE CREW.

SALE BOAT PROGRAM FOR LAKEWOOD LANDS.

LAKEWOOD LANDS SHOULDER IMPROVEMENTS FOR WE WON'T CALL IT A BICYCLE LANE, BUT OUR BEST ATTEMPT AT A BICYCLE LANE.

[00:35:01]

THAT'S WHAT WE SKR -- THAT'S WHAT WE HAVE AGREED TO.

IF WE WANT TO TAKE THOSE THINGS OUT AND THEN COME BACK WITH A, OKAY, HERE IS WHAT YOU HAVE IN GROSS CAPITAL.

WE CAN START COLLAPSING THE EXTRA FUNDS AND MOVING OUT.

>> YES. WE WILL DO THAT.

IN TERMS OF WHILE WE ARE DOING THAT IF YOU WANT TO THINK ABOUT THE BALANCE ON THE SECOND PAGE IN YELLOW ARE THE FUNDS REMAINING. AFTER WE FUNDED ALL OF THOSE PROJECTS. THAT'S WHAT WE WERE LEFT WITH AND THAT'S HOW WE WOULD FUND THE REMAINING.

YES. WE CAN DO THAT.

>> LIKE RIGHT NOW WE DON'T HAVE A FUND CALLED PARKS AND REC.

>> WE DO. THEY ARE HIGHLIGHTED IN THE BLUE

AT THE TOP. >> WE HAVE NEVER CREATED THEM.

>> NO. THIS IS A PLANNING WORK -- WORKSHEET. YOU'RE RIGHT.

>> I THINK WE HAD TALKED ABOUT JUST PUTTING ALL OF THESE CAPITAL PROJECTS ON THE CAPITAL PLACEMENT RESERVE.

>> IF THAT'S WHAT Y'ALL WOULD LIKE TO DO.

I KNOW DIRECTOR RISE -- DIRECTOR REISER WANTED TO MAINTAIN -- WHY THEY ARE HIGHLIGHTED IN BLUE IS BECAUSE MY PROPOSAL TO YOU TODAY WAS TO GET THE FULL BENEFIT FROM THE CREDIT RATING AGENCY THAT'S -- THAT WE WOULD PUT IT IN THE CAPITAL RESERVE, BUT WE

WOULD SUBSET. >> THAT'S WHAT I WAS GOING TO SAY. I AM PERFECTLY HAPPY IF YOU WANT TO CREATE SUB CATEGORIES IN THAT PARTICULAR BUCKET SO THAT PEOPLE KNOW APPROXIMATELY WHERE THAT MONEY IS TENTATIVELY ALLOCATED.

I WILL BE JUST FINE WITH THAT. I AM ONLY ONE PERSON ON THE

BOARD. >> I AM JUST LAYING OUT THE OPTIONS AND THAT'S WHAT I WOULD PRAU -- PROPOSE THAT WE DO IT

THAT WAY. >> I KNOW ALL OF THE OTHER PROPOSALS YOU HAD ABOUT TAKING THE OPERATING RESERVES TO THE 25% AND ALL THAT IS IN THE PURPLE.

WE HAD CONSENSUS ON THOSE ITEMS. I KNOW IT WILL TAKE A LITTLE

TIME, BUT IF WE TAKE A BREAK -- >> DIRECTOR MILNER WASN'T HERE.

>> HE IS OUT VOTED. HE IS AWARE OF WHAT IS ON HERE.

IF WE WANT TO TAKE A BREAK, HOW LONG WOULD IT TAKE TO COLLAPSE THAT DOWN DOWN AND THEN WE COME BACK WITH A CLEAN GROSS CAPITAL.

>> 10 MINUTES? >> WE WILL GIVE HER 15?

>> YES! >>

>> WE HAVE RETURNED FROM RECESS AND WE HAVE A NEW VISUAL OR

SLIGHTLY CONDENSED -- >> SIGNIFICANTLY CONDENSED.

>> THIS LOOKS LIKE FINANCE FOR DUMMIES.

>> SPEAK FOR YOURSELF. >> I WILL LET MONIQUE EXPLAIN

THE NEW VISUAL. >> THERE WE GO.

SO THE FIRST SHEET YOU HAD WITH THE NUMBERS IT WAS A COMPLETE RECONCILIATION FROM WHAT WE DECIDED YESTERDAY.

THIS IS THE SUMMARY SHEET THAT YOU HAVE IN FRONT OF YOU NOW THAT TELLS US EXACTLY WHERE WE ARE.

I AM GOING TO START FROM THE LEFT AND WORK TO THE RIGHT.

THE 2023 UNDESIGNATED FUND BALANCE BASED ON THE 19-CENT RATE WE ARE CURRENTLY WORKING WITH, WE STILL HAVE $1.6 MILLION AVAILABLE THERE AND WE WILL TALK MORE ABOUT THAT IN A LITTLE BIT.

WITH ALL OF THE DECISIONS MADE YESTERDAY AND THE PROJECTS THAT WERE FUNDED FOR THE FIRE DEPARTMENT AND THE PARKS AND RECREATION WE UTILIZED THE 2022 UNDESIGNATED FUND BALANCE THAT WAS 8.2 MILLION AND WE DESIGNATED THAT FOR THE FIRE DEPARTMENT PROJECTS. THE CAPITAL CONTINGENCY LIKEWISE WAS USED -- IT WAS USED AND ACTUALLY TRANSFERRED TO WHAT WE ARE CALLING THE REMAINING UN UNDESIGNATED BALANCE THAT IS HIGHLIGHTED IN BLUE TO HIGHLIGHT PARKS AND RECREATION PROJECTS.

THE CAPITAL REPLACEMENT RESERVE BALANCE OF 51 MILLION, THAT'S WHAT WE HAVE NOW FULLY -- NOT ONLY OUR CAPITAL RESERVE

[00:40:05]

AND AS WE TALKED ABOUT A SECOND AGO, WE WILL HAVE THAT INTERNATIONALLY SPLIT OUT BETWEEN THE FIRE DEPARTMENT PROJECTS AND ALL OF THE DIFFERENT CATEGORIES.

BUT THAT'S THE FUNDING THAT'S AVAILABLE FOR THOSE.

WE STILL HAVE REMAINING UNDESIGNATED BALANCE BASED ON THOSE OF $20 MILLION WHICH CAN THEN BE UTILIZED TO FUND SOME OF THE PARKS AND REC PROJECTS FROM THE NEEDS ASSESSMENT WE TALKED ABOUT EARLIER. THE GROVE PROPERTY RESERVE HAS BALANCES OF ZERO BECAUSE THE FUNDS HAVE BEEN ALLOCATED TO FUND FIRE DEPARTMENT AND PARKS AND RECREATION CAPITAL.

AND THEN FINALLY WE HAVE AN UNDESIGNATED HOTEL TAX BALANCE OF 3,000,00500. 3 MILLION 500.

>> DID YOU TAKE SOMETHING ELSE OUT OF THAT?

>> THAT WAS THE LAZY RIVER. >> OH, THE LAZY RIVER.

I DIDN'T SAY ANYTHING ABOUT DEFUNDING THE LAZY RIVER.

>> OTHERWISE WE CAN RESTORE THAT AND THE UNDESIGNATED BALANCE

WOULD GO BACK DOWN. >> IT'S FINE.

I WENT FROM THIS SHEET TO THIS SHEET.

>> I KNOW. >> AND MYSTERIOUSLY LOST $1.7 MILLION. I'M NOT A DUMMY.

>> WE DID HAVE A LAZY RIVER FUNDED, SO THAT'S WHERE IT CAME

OUT OF FOR NOW. >> SO WHAT IS GOING TO OCCUR GOING FORWARD IS THE INCORPORATION RESERVE AND GROBINGS MILL WILL BE ELIMINATED AND THEY WILL THOUGHT BE PART OF THE FINANCIAL -- THE RESERVE CATEGORY.

THE CAPITAL CONTINGENCY RESERVE IS GOING TO BE ELIMINATED.

>> RIGHT. >> UNDESIGNATED FUND BALANCES ARE THE YEAR TO YEAR BUDGET THINGS AND THEY ARE GOING TO OCCUR WITH POSITIVE VARIANCES. THOSE TWO CATEGORIES WILL STAY ALIVE UNTIL THOSE YEARS HAVE BEEN WIPED OUT.

SO 2022 WILL GO AWAY. >> RIGHT.

>> 2023 WILL BE DEPENDENT ON THE ULTIMATE TAX RATE UH -- ADOPTION AND IT WILL ALSO BE RELATIVE TO POSITIVE VARIANCES IN THE 23

REALIZED BUDGET. >> YES, SIR.

EXACTLY. >> BASED ON THE CURRENT 19-CENT TAX RATE, IF WE LOWER THAT DOWN, THAT WILL POSSIBLY WIPE OUT THE

UNDESIGNATED 23 -- >> AND I HAVE SLIDES TO SHOW Y'ALL IN A SECOND WHAT THE IMPACT WOULD BE ON DIFFERENT

RATES. >> I WON'T GET AHEAD OF YOU.

>> DO Y'ALL WANT TO LOOK AT THAT NOW?

>> SURE. >> OKAY.

>> I MEAN, JUST FOR POINT OF CLARIFICATION, OBVIOUSLY THE 22 UNDESIGNATED FUND BALANCE IS GONE BECAUSE WE HAVE USED IT.

>> YES, SIR. >> AND SO NEXT YEAR'S BUDGET

WILL BE 23/24. >> YES.

>> IT WILL ALWAYS BE THERE. IF THERE ARE OBVIOUS VARIANCES IN THE OPERATING EXPENDITURES AT THE END OF THE YEAR.

>> EXACTLY. THAT'S A FUNCTION OF THE COUNTY.

>> THE POINT I WAS MAKING IS WHILE IT IS AVAILABLE FOR USE, IT ISN'T REALLY A RESERVE ACCOUNT AND IT HAS NEVER BEEN.

>> THAT'S RIGHT. WE CALL IT FUND BALANCE FOR THAT PURPOSE. YOU ARE EXACTLY RIGHT.

>> SO IT IS JUST SO -- SO FOR PURPOSES OF ILLUSTRATION FOR THE FOLKS THAT ARE LOOKING IN AND THEY GO, WOW, -- NO.

THOSE AREN'T RESERVES. >> IT IS A FUNDING THAT WE ROUTINELY SPEND EVERY BUDGET CYCLE.

>> IT IS BASED ON REVENUE AND EXPENSE VERY -- VARIANCES.

>> IT IS CASH FLOW. >> EXACTLY.

>> SO IN TERMS OF OUR PROPERTY TAX JUST AS A HISTORY HERE, AT THE PROPOSED RATE THAT IT IS NOT THE PROPOSED RATE, IT IS THE TARGET RATE WE ARE LOOKING AT RIGHT NOW.

IT IS 19 CENTS. THIS IS THE CHART THAT SHOWS THE HISTORY. YOU CAN SEE A DECREASE IN THE TAX RATE OVER THAT PERIOD OF TIME.

THIS IS A LOOK AT THE ADOPTED TAX RATE IN BLUE VERSUS THE NO NEW REVENUE RATE THAT IS REPRESENTED BY THE BROWN LINE.

AGAIN, THE NO NEW REVENUE RATE IS THE SAME REVENUE TAXED IN BOTH YEARS. THIS BOARD AND PREVIOUS BOARDS HAVE ALWAYS MANAGED THE TAX RATE PORTION OF THE PROPERTY TAX REVENUE IN ORDER TO LOWER THE TAX BURDEN FOR THE RESIDENTS.

SPEAKING OF WHICH THIS IS AN EXAMPLE.

[00:45:02]

YOU CAN SEE THE 19-CENT RATE AND THAT RESULTS IN A TRUE TAX DECREASE ON AN AVERAGE VALUE HOME.

THE TAX DECREASE WILL BE ACTUALLY GREATER FOR HOME THAT'S ARE BELOW THE AVERAGE VALUE. THAT REPRESENTS OVERALL FOR THE COMMUNITY A 6.4% DECREASE IN THE LEVY.

WHAT IS IMPORTANT HERE IN THE DISCUSSION THAT WE HAVE HAD IS BY MANAGING THE TAX RATE, WHAT WE DO IS ALSO A BENEFIT FOR NON-HOMESTEAD PROPERTIES. IF YOU HAVE A HOMESTEAD, BUT YOU ARE NOT MANAGING THE TAX RATE, THE TAX RATE CAN ACTUALLY GO UP.

HERE ALL TAXPAYERS BENEFIT BY THE WAY THE TAXPAYERS BOARD HAS CHOSEN TO DO IT. WHAT THIS MEANS IS PEOPLE THAT RENT, THE PEOPLE THAT RENT HOMES, THE PEOPLE THAT ARE IN NURSING HOME FACILITIES AND PEOPLE IN APARTMENTS AND YOUR SMALL AND MID-RANGE BUSINESSES, ALL OF THOSE ARE BENEFITING FROM THE TAX MANAGEMENT POLICIES OF THE TOWNSHIP BOARD.

SO HERE IS WHAT WE ARE GETTING TO NOW WHEN WE START TO TALK ABOUT THE -- WHAT'S REMAINING IN THE 2023 UNDESIGNATED FUND BALANCE. BASED ON A 19-CENT RATE YOU CAN SEE WHAT THAT OPTION IS AND YOU CAN SEE THE EFFECT ACROSS THE FIVE-YEAR PLAN. IF THE BOARD WAS TO DROP TO EACH 10TH OF A PENNY, IT REDUCES REVENUES BY 250,000.

SO YOU CAN SEE THE EFFECT THERE. EACH QUARTER PENNY REDUCES TAX REVENUE BY 620,000. AND THAT'S ON AN ANNUAL BASIS.

YOU CAN SEE IT SPREAD OUT OVER THE FIVE YEARS.

WHATEVER AS WE DROP BASED ON THOSE NUMBERS I TOLD YOU, THAT'S WHAT WE WOULD BE LOOKING AT. WE CAN RUN OTHER TAX RATE SCENARIOS, BUT THIS IS WHAT I STARTED WITH.

AND THEN I WILL SAY IN TERMS OF THE 1.6 MILLION THAT IS REMAINING IN 2023, WANTING TO BRING YOUR ATTENTION TO A COUPLE THINGS, WE DO NOT HAVE THE FINAL HARRIS COUNTY CERTIFIED VALUES.

WHAT WE ARE WORKING WITH ARE THE CERTIFIED ESTIMATES THAT WE ARE ALLOWED TO DO BASED ON OUR VISITS WITH THEM.

THEY ARE HAVING SOME ISSUES CERTIFYING THE SMALLER AREA WHICH WE ARE A SMALL FISH IN THE BIG POND.

WE HOPED TO HAVE IT THIS WEEK, BUT WE DON'T.

HOPEFULLY IT WILL BE NEXT WEEK. WE TRIED TO MAKE OUR BEST GUESS BASED ON WHAT IS GOING ON WITH PROTESTS.

WE TRY TO ALLOW AND TO ACCOUNT FOR SOMETHING.

I'M JUST SAYING I WOULDN'T NECESSARILY RECOMMEND TAKING THIS DOWN TO ZERO. WE DON'T KNOW THAT WE HAVE NAILED THE EXACT AMOUNT. I THINK WE NEED TO LEAVE SOME ROOM THERE. ALSO IN TERMS OF WHAT WE JUST TALKED ABOUT ON THIS PROJECT MANAGE MEANT -- MANAGEMENT WHETHER IT IS THROUGH STAFF OR HIRING A PROJECT MANAGEMENT FIRM, WE NEED TO LEAVE FUNDS AVAILABLE FOR THAT AS WELL.

>> WELL, THAT ACTUALLY -- YOU KNOW, THAT'S TRICKY.

YOU CAN USE RESERVE FUNDS FOR THAT.

THAT'S A TRUE PROJECT COST. IT IS AN OFFSET BECAUSE THE AMOUNT YOU WOULD HAVE TO SPEND WITHOUT THAT IS SIGNIFICANT.

MAYBE IT GETS HIDDEN, BUT IT WON'T.

OTHER AREAS WILL SUFFER AND YOU WILL HAVE TO COME UP WITH IT.

>> PROJECT MANAGEMENT CAN BE CAPITALIZED.

>> IT IS NOT AN OPERATING EXPENSE.

IT IS ACTUALLY A CAPITALIZED -- >> AND THAT'S REALLY WHERE IT

SHOULD BE. >> I AGREE.

>> IT IS NOT -- IT IS NOT AN ONGOING THING FOR THE TOWNSHIP.

MANAGING THESE THINGS, YES, OF COURSE, EVERY YEAR THERE IS SOMETHING, BUT IT STILL GOES LIKE THIS.

>> YOU ARE NOT GOING TO STAFF UP FOR --

>> IT MAKES SENSE. MONIQUE, NO MATTER WHAT HAPPENS, IT WILL MIRROR MONTGOMERY COUNTY.

IF THE APPRAISAL INCREASES ARE VERY SIMILAR AND THE HOMESTEAD CAP AND THE PERCENTAGE OF HOMES, I THINK THERE IS ACTUALLY A

[00:50:02]

HOMESTEADING. >> THAT IS CORRECT.

>> IT IS QUITE A BIT LESS, ACTUALLY.

I THINK IF YOU USE THE MONTGOMERY ASSUMPTIONS ON THE -- YOU KNOW, ON CREEK SIDE, YOU WOULD BUILD -- YOU WOULD BE BUILDING IN A NATURAL CUSHION ANYWAY.

>> WHICH IS WHAT WE DO. >> BECAUSE OF THE LOWER NUMBER OF HOMESTEADS. I THINK YOU ARE SAFE IN USING

THE ASSUMPTIONS FOR CREEK SIDE. >> THAT'S WHAT WE DID.

WE ARE PRETTY COMFORTABLE WITH IT.

I'M JUST SAYING WE DON'T HAVE THE EXACT FIGURE.

>> YOU SHOULD HAVE SAID THAT. I WOULDN'T HAVE ASKED THE

QUESTION. >> THERE ARE OTHER PARTS OF THE BUDGET THAT ARE REMOVABLE TOO. WE ARE IN OUR CURRENT BASE BUDGET AND WE ARE FUNDING HOW MUCH TOWARD CAPITAL RESERVES AND HOW MUCH TOWARD REPLACEMENT RESERVES.

>> OPERATING RESERVES, NONE. THAT'S BECAUSE OF THE TOWNSHIP BOARD'S POLICY OF USING FAVORABLE VARIANCES TO FRONT LOAD THAT. IT DOESN'T REQUIRE AN ALLOCATION OF THE TAX RATE. FOR THE CAPITAL REPLACEMENT WE ARE ALLOCATING 4 MILLION 250,000 AND THEN SUPPLEMENTING THAT WITH FAVORABLE VARIANCES TO THE EXTENT NECESSARY.

>> AND ONE OF THE THINGS WE SHOULD HIGHLIGHT IS WE ARE NOT HAVING TO ADD OPERATING RESERVES EVERY YEAR BECAUSE WE USED POSITIVE VARIANCES AND PRIOR RESERVE BALANCES TO PRE-FUND THE FIVE-YEAR OUTLOOK FOR OUR OPERATING RESERVE POLICY.

>> RIGHT. >> WHICH ACTUALLY PRODUCED THE TAX RATE. IT USED TO BE HALF A PENNY OF PROPERTY TAX FOR THE AMOUNT WE WERE PUTTING IN THERE.

>> RIGHT. AND ANOTHER POINT TO MAKE ON THIS IS I MEAN, OBVIOUSLY WE ARE USING THE BUILD UP OF FAVORABLE VARIANCES PRIMARILY IN SALES TAX TO CASH FUND A SIGNIFICANT AMOUNT OF PROJECTS THAT MOST CITIES WOULD HAVE TO BOND FOR.

THEY WOULD NOT BE ABLE TO FUND THIS LEVEL OF PARKS AND FIRE DEPARTMENT CAPITAL WITH CASH. BY DOING SO AND USING THE FAVORABLE VARIANCES WISELY LIKE THE BOARD DOES, WE ARE -- WE JUST -- WE DID A QUICK CALCULATION AND WE WERE BACK THERE. BY SAVING -- THE INTEREST EXPENSE SAVINGS IN THE MARKET BETWEEN $24 MILLION AND $28 MILLION BY BEING ABLE TO DO THAT.

THAT IS A SIGNIFICANT POINT AND A SIGNIFICANT BENEFIT TO OUR RESIDENTS BY BEING ABLE TO UTILIZE THIS.

WE INVEST IT AND THEN CASH FLOW IT OUT AS NEEDED.

>> IN ADDITION TO THE OPERATING RESERVE REQUIREMENT KIND OF FALLING OUT, WE ARE ESSENTIALLY DOING THE SAME WITH THE CAPITAL RESERVE. WE ARE PRE-FUNDING A BUNCH OF STUFF THAT REALLY WOULD HAVE BEEN STRETCHED OUT OVER THE FIVE-YEAR PLAN, REALLY. SO WHAT I WOULD SUGGEST TO YOU IS THAT THERE WOULD BE A SIGNIFICANT LESSENING OF THE REQUIREMENT GOING FORWARD. IT PROBABLY WON'T BE 4.2.

IT WILL BE CLOSER TO 5. WHAT WE ARE DOING IS VERY CONSERVATIVE. AND THERE IS ROOM TO ADJUST.

WHEN YOU LOOK AT THE NUMBERS, THAT'S WHAT ZERO IS.

>> THESE ARE CONSERVATIVE NUMBERS FOR SURE.

TO YOUR EXACT POINT, IF WE WERE FOLLOWING THE ORIGINAL RESERVE STUDY AND WHAT THOSE REQUIREMENTS WERE, WE WOULD BE AT ALMOST $6 MILLION ANNUAL CONTRIBUTION BECAUSE OF THE BOARD'S POLICIES IN TERMS OF MANAGING THE RESERVES.

WE ARE DOWN TO 4 MILLION 250 AND AS YOU SAID THAT COULD GO

FURTHER DOWN. >> AND THAT'S BECAUSE THE BULK OF THE EXCESS FUNDS THAT WE GENERATE ARE ALMOST ALWAYS PUT

INTO CAPITAL. >> YES, SIR.

>> ALMOST ALWAYS, PROBABLY 80%. >> THAT'S WHERE THE RESIDENTS'

REQUESTS COME FROM. >> AND THAT IS THE BEST WAY TO

INVEST IT. >> THAT'S TRUE TOO.

>> I ASKED THE QUESTION ABOUT THE INTEREST SAVINGS FOR THE COMMUNITY BECAUSE I THINK IT IS RELEVANT AS WE HAVE PEOPLE EXTERNALLY CRYING ABOUT OUR EXCESS RESERVES.

AND THEY SHOULD BE KNOWLEDGEABLE ABOUT THE AMENITY IMPROVEMENTS THAT THE COMMUNITY REALIZES BY HAVING CASH TO EXPAND AND REFRESH AND REPLACE WHICH GOES TO THE VALUE OF OUR PROPERTIES AND THE AGE OF OUR COMMUNITY. IT MATCHES OUR RESIDENT SURVEYS AS WHY DO THEY LIVE HERE AND WHAT DO THEY LOVE ABOUT THIS

COMMUNITY? >> RIGHT.

>> AND THERE IS A FISCAL BENEFIT TO THE WAY WE HAVE BEEN OPERATING OUR BUDGETS FOR OVER A DECADE.

>> RIGHT. >> THAT INTEREST SAVINGS IS

RELEVANT. >> IS THAT PER YEAR?

>> IT IS CUMULATIVE OVER THE LIFE OF THE LOAN.

[00:55:01]

WE ARE FUNDING IT WITH CASH. THAT'S ONE-THIRD OF THE $28 MILLION SAVINGS IS INTEREST SAVINGS ON BUILDING A FIRE STATION WITH CASH. THE DETRACTORS THAT EXIST AND ARE ALLOWED IGNORE FINANCIAL REALITY.

WHAT WE ARE DOING IS WE HAVE THE MOST CONSERVATIVE, FISCALLY RESPONSIBLE BUDGET ANYWHERE IN THIS COUNTRY.

>> YES. >> IF OUR GOVERNMENT OPERATED THE WAY WE DID, WE WOULDN'T HAVE DEFICITS.

WE WOULDN'T HAVE INFLATION -- INFLATIONARY ISSUES.

>> I WOULD ALSO REMIND YOU THAT CRIMINALS DO NOT COME TO A COMMUNITY THAT IS WELL MAINTAINED AND IS CLEAN AND THAS AREN'T RIDDLED WITH TKPWRAU -- GRAFFITI.

THEY DO NOT COME HERE. IF WE LET THOSE STANDARDS SLIP, IT IS ALMOST LIKE AN INVITATION FOR PEOPLE TO COME, AND TO PERPETRATE CRIME. IT IS AN UNMEASURED BENEFIT TO HAVE A WELL-FUNCTIONING, HIGH STANDARD COMMUNITY THAT YOU ACHIEVE BECAUSE OF THESE RESERVES.

YOU DON'T TALK ABOUT IT, BUT IT IS VALUABLE AND IT IS PALPABLE WHEN YOU WALK AROUND THE COMMUNITY AND IT IS CLEAN AND THERE IS NO GRAFFITI AND THE SERVICES ARE WELL -- THE AMENITIES ARE MAINTAINED AND THERE ARE -- WHAT ARE THEY CALLED? THE TOWN RANGERS ARE OUT THERE.

ALL OF IT SAYS TO CRIMINALS, STAY AWAY.

WE DON'T HAVE TO PUT UP A POSTER THAT SAYS DON'T COME, LIKE THE REST OF MONTGOMERY COUNTY HAS DONE.

IT IS SELF-EVIDENT. IF IT IS CLEAN AND GRAFFITI FREE, CRIMINALS SAY, WELL, MAYBE I WILL GO SOMEWHERE ELSE.

>> SO, WE'RE SAVING AT VALLEY FORD, BUT PREVIOUS BALANCES WERE USED TO PAYOFF DEBT. SO WE HAVE A DEBT REDEMPTION SOE ARTICULATING AND WE DID IT IN DAY ONE OF THE BUDGET. COME TO L CONCLUSION OF THE BUDGET WE SHOULD PRESENT TRANSPARENTLY TO OUR COMMUNITY ALL OF THE ECHOES OF SEND US A DIVIDEND AND BLEED OUT YOUR RESERVES HERE ARE THE BENEFITS THAT HAVE BEEN REALIZED BY OUR CITIZENS BY NOT DOING THAT.

THE CAPITAL PROJECT THAT'S WE OTHERWISE WOULD HAVE HAD TO EITHER BOND OR NOT BE ABLE TO PARTICIPATE IN WHICH IS HUGE.

THE REC CENTER AND THE SPORTS FIELDS, THE THINGS THAT BECAUSE WE HAD CASH ON HAND WE WERE ABLE TO ADDRESS.

THE DEBT REDEMPTION SAVINGS AND THE GOING FORWARD INTEREST SAVINGS ABOUT NOT HAVING TO BOND ANY PROJECTS, IN THE CORY SPOPDING -- IN THE CORRESPONDING TAX RATE WE DIDN'T HAVE TO IMPLEMENT TO COVER THE DEBT SERVICES.

>> RIGHT. THERE ARE VERY SIMPLISTIC, EASY TO GET PEOPLE RILED UP ABOUT, BUT IT DOES NOT FIT THE BEST INTEREST OF THE TKPHAOUPBT. -- THE COMMUNITY.

>> YOU'RE RIGHT. WE ARE AT THE MEETING TO ADOPT THE BUDGET AND WE WILL HAVE THAT OUTLINED.

>> AND EVEN MORE TELLING THAN THAT, IN AN INFLATIONARY PERIOD THAT WE HAVEN'T SEEN IN 50 YEARS, I BELIEVE THAT WE ARE THE ONLY TAX AMENITY IN THE COUNTY THAT HAS PROPOSED GOING AT OR BELOW THE NO NEW REVENUE RATE AT THIS PARTICULAR POINT IN TIME.

PEOPLE NEED TO TAKE A HARD LOOK AT THAT.

WHEN YOU SEE THESE RATES DROPPING, YES, THE RATE ITSELF IS DROPPING, BUT IT IS NOT DROPPING TO THE NO NEW REVENUE RATE. THERE IS A LOAD OF ADDITIONAL TAXES THAT ARE BEING PROPOSED BY OTHER TAX AMENITIES IN THE COUNTY. THAT'S NOT THE CASE WITH THE BOARD AND THE FACT THAT NONE OF THOSE ENTITIES HAVE SAT AT THE NO NEW TAX RATE FOR A DECADE AS WE HAVE.

WHEN YOU LOOK AT, YOU KNOW, AT WHAT IS GOING ON HERE -- AND MORE IMPORTANTLY, I THINK MORE IMPORTANT THAN THAT, YOU TAKE A LOOK AT OUR COMMUNITY SURVEY AND THERE MAY BE PEOPLE YELLING ABOUT IT, BUT MOST OF THE PEOPLE WHO LIVE HERE HAVE FIGURED IT OUT. THEY KNOW WE ARE DOING THE RIGHT THING AND THE TAX POLICY HAS BEEN VERY, VERY FAVORABLE TO THE TAXPAYERS IN THIS PARTICULAR JURISDICTION.

HAVE AT IT. WHEN YOU SAID YOU DON'T THINK, THERE ISN'T ANOTHER CITY OR ANOTHER SPECIAL PURPOSE DISTRICT IN THIS COUNTRY THAT CAN GET AWAY WITH FUNDING THE AMOUNT OF PROJECTS WE ARE PROPOSING TO DO RIGHT NOW WITHOUT A SIGNIFICANT BOND ISSUANCE OFFERING. AT FUN FACT OUT THERE, WHEN I

[01:00:07]

$50 MILLION. >> RIGHT.

>> IT IS EASY TO SIT OUT THERE AND PICK AT LITTLE PIECES OF THE BUDGET AND SAY, YOU KNOW, WELL, I DON'T AGREE WITH THAT.

I GUARANTEE YOU WHOEVER IS SITTING IN THIS SEAT NEXT YEAR IS GOING TO FIND OUT REAL QUICK THAT WHAT IS GOING ON HERE IS UNPRECEDENTED AND IT IS ABSOLUTELY THE BEST THING AND THE ONLY THING THAT WE SHOULD BE DOING, PERIOD.

>> WE WILL SHARE, DIRECTOR REISER THAT SINCE 2017 THERE WAS A 72% REDUCTION IN DEBT. AND WE WERE ALSO AT 107 MILLION AND WE ARE NOW AT 30. THAT IS A PLUS BY THE STAFF AND

THE BOARD. >> AND FOR EVEN A COMPLETELY OBJECTIVE VIEW OF ALL OF THAT OUR CREDIT READING IS IN THE GREEN BY WHAT WAS SAID. THERE ARE PROFESSIONALS THAT POUR OVER OUR FINANCIAL STATEMENTS AND OUR FINANCIAL POLICIES TO LOOK AT ALL THAT, AND THAT'S THE REASON WE HAVE A DOUBLE A PLUS. TO THE POINT YOU ARE MAKING RIGHT NOW, WE WOULD LIKELY, CAN'T GUARANTEE, BUT WE WOULD LIKELY HAVE A TRIPLE-A RATING BECAUSE OF THE OTHER ENTITIES THAT AFFECT US. WE DO GET DEEMED BY THE OVER --

OVERLAPPING DEBT. >> AND IN HARRIS COUNTY.

>> FOR THE REMAINDER OF TODAY, SINCE WE HAVE A REVISED VIEW OF THE UNDESIGNATED BALANCES, MY SUGGESTION WOULD BE, DR. NOONES, IF YOU WOULD LIKE TO RETURN TO THE PODIUM.

>> MAY I ASK ONE MORE QUESTION? >> SURE.

>> MONIQUE, WHAT WOULD BE YOUR COMFORT LEVEL IF WE WERE TO TAKE

THAT RATE DOWN TO .185? >> WE WILL HAVE TO ADJUST OUR CAPITAL CONTRIBUTIONS TO SHOW THAT THAT'S, YOU KNOW, PLAUSIBLE

>> WE COULD CERTAINLY DO THAT. IT PUTS THE NUMBER IN 2027 TO ABOUT $1.7 MILLION NEGATIVE WHERE WE HAVE BEEN THERE BEFORE AND WE HAVE SURVIVED IT JUST FINE.

AGAIN BECAUSE THESE ARE BASED ON CONSERVATIVE ESTIMATES.

MY ONLY HESITATION IS WE TRY NOT TO GO TOO FAR BEYOND THAT MILLION DOLLARS IN THE OUT YEARS, BUT IT CAN BE DOABLE IF THAT'S WHAT THE BOARD WANTS. WE HAVE A LOT OF FLEXIBILITY IN THIS BUDGET. WE CAN DO WHAT WE NEED TO DO.

>> I APPRECIATE YOUR CONSERVE -- CONSERVATISM.

I AM MARRIED TO SOMEBODY LIKE THAT.

>> WHAT I SUGGEST, DIRECTOR MILNER IS THAT WE FINALIZE THE UNDESIGNATED BALANCE OF CAPITAL WHICH IS LARGELY GOING TO BE IN THE PARKS AREA. WE ARE NOT GOING TO FINISH OUR BUDGET TODAY. WE HAVE OTHER EXTERNAL PENDING ISSUES THAT WILL MAKE US PUSH OUR BUDGET ADOPTION AND

EVERYTHING FURTHER OUT. >> THAT'S CORRECT.

TO SEPTEMBER 8TH IS WHAT WE HAVE ON THE BOOKS RIGHT NOW, AND WE MAY EVEN HAVE ANOTHER DATE BEYOND IN THE NEXT WEEK.

WHEN WE GET TO THAT PART, I WOULD LIKE TO SAY TODAY THAT I DO NEED -- UNLESS YOU ARE PLANNING ON MEETING TOMORROW, THAT IF TODAY IS THE LAST DAY I NEED A PROPOSED RATE BECAUSE THAT DETERMINES WHAT TYPE OF NOTICES WE HAVE TO PUBLISH IN THE PAPERS AND AS A REMINDER ON THE PROPOSED RATE, YOUR DEBT SERVICE RATE COMPONENT CANNOT CHANGE AND WE WOULDN'T WANT IT TO BECAUSE THAT IS SET TO EXACTLY WHAT WE NEED FOR PRINCIPAL AND INTEREST. SAY YOU WENT IN TODAY -- IF YOUR PROPOSED RATE IS 19 CENTS, YOU CAN ALWAYS LOWER IT WHEN YOU GET TO THE ACTUAL ADOPTION. YOU CAN GO -- YOU CAN DO WHATEVER YOU WANT. I'M REMINDING YOU YOU CAN ALWAYS GO LOWER THAN WHATEVER YOU DETERMINE TODAY.

>> I THINK WE LEAVE IT AT 19 UNTIL WE KNOW WHERE -- YOU KNOW, WHERE THE OTHER STUFF FALLS. I THINK MY -- YOU KNOW, MY PREFERENCE IS TO GO LOWER WITH THAT.

IF NOTHING CHANGES FROM WHERE WE ARE NOW, I STILL THINK THAT WE PROBABLY SHOULD GO DOWN TO, YOU KNOW, 18 AND THREE-QUARTERS.

THERE IS A PRETTY BIG UNKNOWN OUT THERE.

>> EXACTLY. >> BUDGETS ARE FINE.

[01:05:08]

THERE ARE A NUMBER OF DIS-- DISCLAIMERS IN YOUR PRESENTATION ON FEASIBILITY AND BASED ON FLOOD PLAINS AND THERE ARE SUGGESTIONS FOR POTENTIAL GRANTS TO HELP OFFSET SOME OF THESE COSTS. I DON'T KNOW IF WE NEED TO BE VERY SPECIFIC TO EACH ONE OF THESE PROJECTS, BUT THERE IS A $20 MILLION REMAINING UNDESIGNATED BALANCE.

WE CAN AS A BOARD IF BE -- IF WE CHOOSE, MOVE THAT TO THE CAPITAL REPLACEMENT RESERVE AND DESIGNATE THAT FOR PARKS AND RECREATION PRIORITY PROJECTS WHICH WOULD THEN COME BACK TO THE BOARD THROUGHOUT THE FUTURE YEARS.

>> THERE PROBLEM -- PROBABLY BE MULTIPLE TIMES YOU WILL SEE THESE PROJECTS AGAIN. WE ARE WORKING AT A DESIGN PHASE, LIKE WE PRESENTED FALCON PARK AND FINAL DESIGN AND BID PROCESS FOR THAT. COMING BACK TO YOU FOR APPROVAL OF VARIOUS BIDS, LED LIGHTS, RESTROOM RENOVATIONS AND THOSE TYPES OF THINGS. THERE ARE MULTIPLE TIMES THAT YOU COULD SEE THESE PROJECTS AGAIN TO MAKE A DECISION, YES OR NO. AND AS I MENTIONED FLEXIBILITY BASED ON NEEDS. IF WE START TO REPRIORITIZE ITEMS THERE IS THIS ACCOUNT THAT IS SET UP FOR THESE -- FOR ITEMS IDENTIFIED IN THE NEEDS ASSESSMENT.

>> AND WE ALSO HAVE FULLY FUNDED THE CAPITAL NEEDS FOR THE FIRE DEPARTMENT IN THIS BUDGET CYCLE. WE ONLY FUNDED 10 MILLION PLUS THE TWO OR THREE MILLION DOLLARS THAT WE HAVE THAT WAS ALREADY THERE. YOU STILL GOT SOME PROJECTS THERE THAT HAVE NOT ACTUALLY BEEN DONE EITHER.

THAT IS BEING TAKEN INTO ACCOUNT WITH THE REMAINING UNDESIGNATED

BALANCE AS WELL. >> OKAY.

SO I'M GOING TO GO BACK A PAGE, MONIQUE.

THIS WILL TAKE YOUR INVOLVEMENT HERE.

AT ONE POINT IN THE ORIGINAL SHEET YOU HAD SHOWN THAT THERE IS 5.2 MILLION, BUT THAT 5.2 MILLION WITHIN OUR ORIGINAL CAPITAL REPLACEMENT RESERVE WOULD BE PART OF THE PARK'S

REPLACEMENT BUDGET. >> THAT IS CORRECT.

>> SO IS THAT STILL -- >> I'M SORRY.

SO ACTUALLY THAT WAS AN ALLOCATION WHEN WE WERE DRAWING DOWN THE INCORPORATION RESERVE THAT I MOVED OVER THERE.

IT IS NOT -- IT WAS ADDED TO THE EXISTING CAPITAL REPLACEMENT.

>> SO IT IS NOT PART OF THE EXISTING.

GOT IT. SO WE ONLY HAVE 20 MILLION.

THERE IS NOT A MIRACLE 5 MILLION HIDING.

>> NO, SIR. I'M SORRY.

>> WE HAVE TWO CAPITAL CONSTITUENTS THAT HAVE NEEDS AND WE HAVE ONLY PARTIALLY FUNDED WHAT WE KNOW.

STATION 3 AND 4 ARE IN NEED OF REPAIR OR ENHANCEMENT.

WE DON'T KNOW THE AMOUNT OF THE NEED BECAUSE OF OPTIONALITIES

WITH BOTH OF THOSE STATIONS. >> CORRECT.

>> ETC WE GAVE SOME CAPITAL TOWARD THE SHOWERS AND THE REHABILITATION AND THE EXPANSION TO MAKE THE FACILITY MORE VIABLE. DO YOU HAVE A SUGGESTION?

>> I WOULD SAY TAKE 25% OF THE NUMBER FOR NEXT YEAR, YOU KNOW, OF THE NEED, AND ALLOCATE THAT TO THE INITIAL, YOU KNOW, PARKS REQUEST. WE PROBABLY WON'T EVEN SPEND ALL THAT IN THE FIRST YEAR. AT THAT POINT WE NEED TO BE MINDFUL IN THE FUTURE, BUDGET CYCLES, NOT SPENDING SOME OF THE CAPITAL WILL RESULT IN A POSITIVE VARIANCE AND SO YOU NEED TO MAKE SURE THAT WHATEVER THE POSITIVE VARIANCE GOES BACK IN, THAT AUTOMATICALLY GOES BACK INTO THAT CAPITAL RESERVE BECAUSE WE ARE REALLY GOING TO SPEND IT, BUT WE HAVEN'T SPENT IT YET. WE HAVE AUTHORIZED THE SPEND FOR THIS -- YOU KNOW, FOR THE EXTENT OF THE PROJECT.

AND SO THAT JUST NEEDS TO BE -- IT GETS TRICKY WHEN YOU ARE OVERLAYING YOUR MUNICIPAL BUDGET WITH A CAPITAL BUDGET.

>> YOU'RE RIGHT. THERE IS PLAN GOING FORWARD AND THERE IS A TRUE CASH FLOW. WE ARE ON THE SAME PAGE.

>> BECAUSE OF THE DIFFERENT RULES FROM THE MUNICIPAL ACCOUNTING, IT GETS -- IT IS A LITTLE TRICKIER THAN DOING A STANDARD PRIVATE COMPANY BUDGET WHERE YOU JUST SEE THIS NUMBER

[01:10:02]

>> YES, SIR. >> WHAT'S THE TOTAL ASK?

>> I'M TRYING TO CREATE A PARALLEL BETWEEN THE TWO CAPITAL REQESTS. I THINK IN THE FIRE SERVICE WE HAD ORIGINALLY ABOUT 20 MILLION IN REQUESTS?

>> YES. >> AND WE FUNDED 10 MILLION.

>> CORRECT. >> AND IN THE PARKS AND REC TABOO LAYINGS FOR PHASE 1 -- TABULATION FOR PHASE 1, 2 AND 3, IT WAS 46 MILLION. WE WOULD ESSENTIALLY HAVE FUNDED HALF AND HALF OF EACH OF THEIR FULL REQUESTS, BUT I DON'T KNOW HOW MUCH OF PHASE 2 AND PHASE 3 IS OF IMMEDIATE SEE --

IMMEDIACY. >> I THINK YOU ARE LOOKING AT THE TOTAL FOR PHASE 1, 2 AND 3. PHASE 1 IS THE 2022.

W HAVEN'T DISCUSSED PHASE 2 AND 3, BUT THOSE GO INTO LOWER PRIORITIES. IF YOU JUST GIVE ME TWO MINUTES I CAN GO THROUGH THE SLIDES AS WELL.

THIS GOES INTO ADDING PHASE 1 OF SOUTH GOSLING THAT WE THINK IT IS A REALLY POTENTIAL BEAUTIFUL PARK AND GATEWAY TO THE COMMUNITY, MINUS THE ENVIRONMENTAL CENTER AND THE NATURE CENTER. YOU ARE IN THE BALLPARK OF $9 MILLION. AND THE REST ARE TURF FIELDS AS WELL AS NEW REST -- RESTROOMS IN SUNDANCE, CAP STONE AND PEPPER DALE. THOSE ARE THREE AREA PARKS.

THEY HAVE LIGHTED BASKETBALL AND LIGHTED TENNIS.

AND THEY MOVED UP THE PRIORITIZATION LIST AND WE GET COMMENTS ABOUT WHY ARE THERE NOT BATHROOMS IN THERE.

AND BY THE TIME WE GET TO FIELD PHASE 3, IT IS THE BATHROOMS. WHAT WE FELT ON PUTTING ON A FURTHER PHASE IS WE MAY BE GETTING TO SOME OF THESE PARKS WITH THE COMMUNITIES VILLAGE PARK RENOVATION PROGRAM OR THERE ARE THINGS WE CAN DO WITHIN THE EXISTING OPERATIONAL BUDGET AND SOME SMALLER ITEMS WE CAN RECOVER FROM THAT. SINCE BATHROOMS WERE A HIGH PRIORITY CONCERN WE WANTED TO GIVE MORE OF A LEVEL OF HOW WE PLAN TO ADDRESS IT AND THAT'S HOW WE GET THE 40 AND CHANGING

NUMBER. >> TO ME THAT BATHROOM NUMBER, THAT'S A FAIRLY LOW COST FOR A BIG, BIG IMPACT ITEM.

IT CAN GET MOVED UP TO BEING DONE IMMEDIATELY.

THE PLANNING AND THE CONSTRUCTION REALISTICALLY COULD

BE ACCOMPLISHED IN 12 MONTHS. >> ARE YOU REFERENCING PHASE 2

AT CAP STONE, SUNDANCE -- >> I'M -- YES.

THAT'S EXACTLY WHAT I'M DOING. THEY SHOULD MOVE UP THE LIST.

>> WHAT I'M SUGGESTING IS A LOT OF THE STUFF IN PHASE 1, YOU HAVE EXTENSIVE PLANNING THAT HAS TO BE DONE BEFORE ANY CONSTRUCTION IS GOING TO START. THAT'S THE REASON WHY I AM TALKING ABOUT -- I DON'T THINK FUNDING IT AT 50% -- IT IS NOT LIKE THE FIRE DEPARTMENT. THEY HAVE A BETTER FIGURE -- THEY HAVE A BETTER IDEA OF WHERE THEY COULD GO.

THERE MAY BE TWEAKING, BUT IT WOULD BE LESS -- LESS PLANNING WORK THAN YOU WILL HAVE TO DO. IS THAT FAIR?

>> I WOULD SAY FROM AN ALDON PARK SPORTS PARK, THAT IS TOUGH.

THAT IS WHERE WE ARE RAW. THERE IS NOTHING THERE.

ALL OF THE OTHER PROJECTS WE HAVE DONE BEFORE, SO WE HAVE STANDARDS FOR THE LED LIGHTS. THEORETICALLY IT COULD TAKE A WEEK TO GET PROPOSALS. NOT THAT WE CAN WORK THAT FAST, BUT YOU UNDERSTAND. TENNIS COURTS, THERE ARE SPECIFICATIONS AND IT IS FAIRLY SIMPLE AND STRAIGHT FORWARD.

IT GETS TO THE ALDON BRIDGE. THE BATHROOMS, DEVELOPING A NEW BATHROOM BECAUSE WE DON'T HAVE THE SMALL SCALE STAN -- STANDARD ANYMORE. THAT WILL TAKE SOME TIME.

YOU ARE RIGHT IN THE YEAR TO 18-MONTH WINDOW TO ACTUALLY GO FROM, HEY, SELECT A VENDOR. AND WE WILL MOVE ON TO THE

PROCESS. >> WHAT I'M TRYING TO AVOID IS ALLOY INDICATING -- IS ALLOCATING A BUNCH OF MONEY THAT

CAN'T BE SPENT IN THAT YEAR. >> IT IS A GOOD QUESTION.

IS THERE A WAY TO SORT THE REMAINING PARKS PROJECTS BY ACTION -- ACTIONABLE IN THE NEXT 12 TO 18 MONTHS?

>> THINKING THROUGH THIS, WE HAVE ANOTHER PRESENTATION

TONIGHT. >>

TONIGHT. >> WHAT JOHN AND I WERE TALKING ABOUT. THERE IS MOVEMENT AFOOT TO MOVE

[01:15:01]

FOR EXAMPLE, IF YOU WANTED TO START WITH ALDON BRIDGE SPORTS PARK WE WILL NEED 80% FROM A DESIGN PHASE.

THEN WE MOVE INTO CONSTRUCTION PHASE WHICH IF WE ARE IN -- 23,

24, MAYBE LATE 24 TO 25. >> I THINK THERE IS A CONSENSUS THAT WE ALL WANT TO FIX WHAT AILES -- AILS ALDON BRIDGE.

WE WILL GIVE YOU THE REST OF THE DAY TO HELP ARTICULATE THAT NEAR TERM, ACTIONABLE, AND IF THIS BOARD FUNDS THE DESIGN ELEMENT, FEASIBILITY. A FUTURE BOARD LIKE YOU SAID A YEAR, TWO, THREE DOWN THE ROAD, WOULD HAVE THE UPDATED CAPITAL ACTUAL PLAN OF WHAT IT WOULD COST TO IMPLEMENT.

ALONG THE WAY WE HAVE DONE OTHER IMPROVEMENTS.

>> AS IT IS ALREADY ON THE AGENDA FOR TONIGHT, WE WILL

DEVELOP THAT. >> WITH THAT BEING SAID I SAY WE

DON'T DO ANYTHING ELSE TODAY. >> WE NEED TO PROPOSE A RATE.

WE ALREADY HAVE 19 CENTS. I ASSERT MY INTENTION IS TO BE BELOW THAT. BY THE TIME WE FINISH.

BUT WE HAVE EXTERNAL FACTORS AND SOME ADDITIONAL DECISIONS TO DO BEFORE WE CAN NAIL DOWN WHAT THAT ULTIMATE NUMBER WOULD BE.

>> LIKE YOU SAID, WE CAN GO LOWER AT ANY POINT UNTIL THE

LAST DAY OF THE DEADLINE. >> THAT IS CORRECT.

YOU CANNOT GO HIGHER THAN WHAT YOU HAVE, BUT YOU CAN'T GO

LOWER. >> CAN YOU GO BACK TO THE SLIDE SHOW ON THE FIVE-YEAR AND SEE A FUND BALANCE OF THE TAX RATE YOU

HAVE ALREADY CALCULATED? >> YOU MAY HAVE PUT IT OVER

THERE. >> I'M STEALING HIS CHEAT SHEET.

>> SO DO YOU ALREADY HAVE WHAT THE DEBT SERVICE RATE WOULD BE AND THE SERVICE RATES WOULD BE -- OKAY.

ALL RIGHT. HIT THE 19.

THIS IS GOING TO BE AGENDA ITEM 8.

DO YOU HAVE THE SAME CALCS FOR BELOW 19?

>> HERE IT IS FOR 18/9 AND 18/7.5.

I CAN CALCULATE MORE IF YOU NEED ME TO.

>> I WILL LET THE CONSENSUS OF THE BOARD DECIDE WHICH YOU WANT TO PROMOTE -- WHICH YOU WANT TO PROPOSE.

>> I ALREADY SAID -- >> I AM IN FAVOR OF 1875.

>> IS THAT THE YEAR YOU WERE BORN, BOB?

>> WITHIN AN ACCEPTABLE -- >> HE AGES IN FOUR-YEAR BLOCKS.

>> I TOO AM IN FAVOR OF 1875. >> THAT'S FINE.

THE POINT IS THAT IT IS MORE THAN THAT.

IT IS SIGNALING TO THE COMMUNITY THAT WE ARE GUARANTEEING THAT WE ARE GOING BELOW THE NO NEW RECEIVE NOW RATE.

THE NO-NEW-REVENUE RATE. I THINK IT MAKES A HUGE STATEMENT. SO THE DIFFERENCE -- WHAT IS THE ACTUAL REDUCTION THAT WE HAVE DONE IN THE M AND O RATE.

ALL OF THE REDUCTIONS COME OUT OF THE M AND O RATE.

IT IS BASICALLY -- WHAT? I'M PROBABLY MAKING THE MATH TOO DIFFICULT. IT IS JUST UNDER 4 CENTS.

>> YES. >> WELL, I THINK THE OTHER OF

[01:20:02]

>> THAT AND OF COURSE THE WHOLE 10TH COMPANY FOR THE FIRE SERVICE AND THE EQUIPMENT THAT GOES ALONG WITH THAT.

THERE IS A LOT OF ACTION THAT HAS OCCUR ETD IN -- THAT HAS

OCCURRED IN THIS BUDGET. >> AND ADDITIONAL LAW

ENFORCEMENT OFFICERS. >> THERE IS A LOT OF BENEFIT.

>> THERE IS A HUGE BENEFIT, BUT ALSO ONCE AGAIN, AND I CAN'T REALLY -- MAYBE I AM NOT SAYING IT FORCEFULLY ENOUGH, WE COME OUT OF A THREE-YEAR CYCLE WHERE WE HAD A PANDEMIC AND WE HAD A HUGE REVENUE DROP. YET, STILL, IN THE LAST THREE BUDGETS, AT THE NO-NEW REVENUE RATE OR LOWER.

NO MATTER WHAT. GOOD TIMES, BAD TIMES, THE POLICY -- THE BUDGET POLICIES OF THIS BOARD HAVE ALLOWED US TO WEATHER EVERY POSSIBLE BUDGET CYCLE AND STILL THE RESIDENTS HAVEN'T GOT HURT. NO OFFENSE, BUT IT IS NOT BY ACCIDENT. IT IS A HECK OF A LOT OF HARD WORK ON YOUR PART AND THE STAFF AND THE WILLINGNESS -- ONCE AGAIN. THE STUFF THAT HAS GONE ON HERE FOR THE LAST THREE YEARS, THE IMMEDIATE PIVOT TO REDUCING THE OPERATING EXPENSES AND MAKING THE NECESSARY BUDGET ADJUSTMENTS TO ALLOW US TO WEATHER A 20 PLUS MILLION DOLLAR REVENUE HIT IS REMARKABLE. THAT IS WHY YOU HAVE THE RESERVE POLICY THAT THIS BOARD HAS ADOPTED.

WE DIDN'T ADOPT IT. IT HAS BEEN IN PLACE FOR 12 YEARS. IF ANYBODY DOESN'T UNDERSTAND NOW AFTER WHAT WE HAVE SEEN IN THE LAST THREE YEARS THAT EVERY TAXING ENTITY IN THE U.S. SHOULD BE LOOKING AT THIS MODEL IS -- YOU ARE JUST NOT PAYING ATTENTION.

I CAN'T SAY ENOUGH FOR FELLOW BOARD MEMBERS AND THE PROFESSIONAL STAFF HERE THAT UNDERSTAND THAT ULTIMATELY IT'S OUR JOB TO MAKE SURE THAT -- AND THERE IS NO SLIPPAGE IN SERVICE EITHER. NONE OF YOUR SERVICE WAS IMPACTED IN THE THREE YEARS. WE ARE NAMED THE BEST CITY IN AMERICA TO LIVE TWO YEARS IN A ROW.

THE PARKS AND RECREATION SYSTEM HAS BEEN AWARDED THE LAST THREE

YEARS IN A ROW. >> OUR FIRE DEPARTMENT.

>> OUR FIRE DEPARTMENT -- WELL, I AM PREJUDICE, BUT OUR FIRE DEPARTMENT IS THE BEST IN THE COUNTRY.

>> AGREED. >> YOU CAN SMILE, CHIEF.

>> HOPEFULLY, IT'S RIGHT. THE LAST THREE YEARS HAVE BEEN TUMULTUOUS. WE DIDN'T GET THE FEDERAL FUNDING BAILOUTS. WE ARE IN AN UNINCORPORATED AREA. WE DIDN'T GET THE CARES ACT FUNDING THAT THE ENTITIES WERE ENTITLED TO RECEIVED.

THAT'S $6 MILLION THAT IF WE HAD BEEN IN A DIFFERENT TYPE OF ORGANIZATION WE WOULD HAVE HAD IN ADDITION TO EVERYTHING ELSE WE DID. IT IS NOT A SMALL -- WE DIDN'T JUST OVERCOME $20 MILLION IN REVENUES FROM THE HOTEL TAX AND THE SALES TAX. WE ARE LOOKING AT FUNDING THAT IS INTENDED TO BE RECEIVED. [INAUDIBLE] WE HAD THE FLOODS, TAX DAY FLOODS, HURRICANE HARVEY.

>> FREEZES. >> WINTER FREEZE.

IN THE SPAN OF THE LAST SIX YEARS YOU HAD FIVE MAJOR CATASTROPHES THAT HAVE BEEN WEATHERED AND HAVE BEEN FINANCIALLY NAVIGATED BY OUR STAFF AND OUR BOARDS AND OUR RESIDENTS AND OUR VOLUNTEERS AND OUR FIRE SERVICE AND IT CAN STILL HAVE THE CONSISTENCY AND THE HIGH LEVELS OF SERVICE AND THE LOW DEBT AND THE LOW TAX RATES AND IT IS NOT SEEN

ANYWHERE ELSE IN THE COUNTRY. >> WE HAVE ONE OF THE TOP

[01:25:10]

WE HAVE AN OUTSTANDING GROUP OF PEOPLE WORKING OVER THERE AS WELL. KUDOS TO NICK AND ALL OF THOSE FOLKS. IT HAS CONTRIBUTED TO THE SUCCESS OF THE ORGANIZATION. IT DOESN'T GET TALKED ABOUT MUCH AND PEOPLE NEED TO REALIZE THAT -- THE WORD UNPRECEDENTED COMES TO MIND WHEN YOU TALK ABOUT WHAT GOES ON.

>> AND ALL WITH A PROPOSED RATE THAT IS 16% LOWER THAN THE

CURRENT YEAR. >> FOR EVERYBODY.

>> FOR EVERYBODY. >> SO I NEED A MOTION AND A SECOND TO APPROVE THE 2022 PROPERTY TAX RATE OF .1875.

>> SO MOVED. >> 100 OF TAXABLE VALUE CONSISTING OF A DEBT SERVICE RATE OF .0121 AND A MAINTENANCE

AND OPERATIONS RATE OF .1754. >> SO MOVED.

>> SECOND. >> ALL IN FAVOR SAY I.

>> I. >> ANY OPPOSED?

>> I'M SORRY. JUST TO BE SAFE, IF WE CAN HAVE A RECORDED VOTE. SO IF YOU CAN VOTE INDIVIDUALLY

THAT WOULD HELP. >> I WILL TAKE YOUR RECORDED IN

A LONG-WINDED MOTION. >> THANK YOU.

>> ALL IN FAVOR SAY I. >> I.

>> ACTUALLY -- OKAY. EVERYBODY.

7-0. WE HAVE A PROPOSED RATE.

IT CANNOT GO UP. IT COULD COME DOWN.

AND WE WILL NOT HAVE TO HAVE A PUBLIC HEARING BECAUSE WE ARE BELOW THE NO NEW REVENUE RATE. WE DO NOT HAVE EXECUTIVE SESSION TODAY. TONIGHT WE WILL AND THAT MOVES

US TO A MOTION TO ADJOURN. >> SO MOVED.

>> SECOND. >> ALL IN FAVOR SAY I.

>> I.

* This transcript was compiled from uncorrected Closed Captioning.