May 16, 2024 Board of Directors Budget Planning Session

[00:00:13]

>> GOOD AFTERNOON AND WELCOME TO THE WOODLANDS TOWNSHIP BOARD OF DIRECTORS BUDGET PLANNING SESSION BUT MAY 16, 2024 AT

[1. Invocation / Pledge of Allegiance;]

INVOCATION. >> THANK YOU. HEAVENLY FATHER, WE THANK YOU FOR THIS DAY. WE THANK YOU FOR THIS RAIN BUT DO NOT WANT TOO MUCH. WE THANK YOU FOR EVERYONE WHO IS HERE AND BE WITH THOSE WHO ARE UNABLE TO MAKE IT THAT WANTED TO BE HERE.

WE PRAY THAT YOU WOULD GIVE US WISDOM AND GUIDE US AS WE MAKE DECISIONS AND HOPEFULLY TO FURTHER YOUR WELL WHO HAVE GIVEN US THE PRIVILEGE TO BE HERE TODAY. WITH THAT WE THANK YOU AND WE ASK THAT YOU BLESS THIS NATION'S , STATE AND COMMUNITY AND ALL OF US AND OUR FAMILIES. GIVE US HEALTH AND SAFETY. IN JESUS ' NAME WE PRAY, AMEN.

>> THANK YOU, KYLE. DIRECTOR FRANKS, IF YOU WOULD LEAD US IN OUR PLEDGE TO OUR COUNTRY AND OUR STATE.

>> I PLEDGE 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. ON THE TEXAS FLAG. ONE STATE UNDER GOD.

[2. Call meeting to order;]

>> I CALLED THE MEETING TO ORDER AT 3:33 AND DECLARE THAT IN ACCORDANCE WITH STATE LAW, NOTICE OF THIS MEETING WAS POSTED 72 HOURS IN ADVANCE OF THE MEETING AND THIS POSTING OCCURRED INSIDE THE BOUNDARIES OF THE TOWNSHIP AT THIS OFFICE BUILDING. STATE LAW REQUIRES THAT AT LEAST FOUR OF OUR BOARD MEMBERS BE IN ATTENDANCE TO ESTABLISH A QUORUM FOR CONDUCTING BUSINESS GRID I ASK EACH BOARD MEMBER TO PLEASE INDICATE HIS OR HER PRESENCE I RESPONDING WITH SOME AUDIBLE SOUND OF ACKNOWLEDGMENT AS ROLE IS CALLED. DIRECTOR BAILEY

PREMIUM HERE FOR >> DIRECTOR FRANKS. TWO YEAR.

DIRECTOR HEISER PER >> YEAR PER

>> DIRECTOR ALLISON >> YEAR.

>> DIRECTOR SEKULA-GIBBS. >> HERE.

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

>> BY THE ROLL CALL IT IS DETERMINED THAT A SUFFICIENT NUMBER OF MEMBERS ARE PRESENT TO DECLARE THAT WE HAVE A QUORUM . THAT BRINGS US TO AGENDA ITEM THREE TO RECEIVE AND ACT UPON THE ADOPTION OF ÚTHE MEETING AGENDA. IS THERE A

MOTION AND SECOND? >> SO MOOT.

>> SECOND . ALL THOSE IN FAVOR SIGNIFY BY SAYING , AYE.

>> AYE. >> ANY OPPOSED? THE MOTION PASSES. THERE IS NO ELECTED OFFICIALS AND THE AUDIENCE.

ALSO NO ONE HAS SIGNED UP FOR PUBLIC COMMENT. THAT WILL BRING

[6. Receive, consider and act upon review of the proposed 2025 Budget Objectives and the related Five-Year Plan;]

LOOKING FORWARD. >> ME TOO. GOOD AFTERNOON, EVERYONE.

TODAY IS THE OFFICIAL KICKOFF OF THE BUDGET SEASON . FOR STAFF THAT GOES ON ALL YEAR LONG AND WE HAVE BEEN BUSY FOR THE PAST COUPLE OF MONTHS. I RECOGNIZE -- I THINK EVERYONE IN HERE IS STAFF AND WE HAVE ALL BEEN BUSY WORKING ON THIS TICKET TO THIS POINT. WE ARE BUSY PUTTING INFORMATION FROM THE DEPARTMENTS INTO THE MODEL BUT WE WILL NOT GET INTO DETAILS THIS AFTERNOON. WHAT WE ARE DOING HERE IS -- I WANT TO GO THROUGH THE STATUS OF WHERE WE ARE NOW AND GET BACK FROM THE BOARD OF DIRECTORS ON YOUR OBJECTIVES AND PRIORITIES LEADING UP TO THE PROCESS TO MAKE SURE THAT STAFF HAS PLENTY OF TIME TO DO THE RESEARCH AND ANALYSIS WE NEED SO THAT WHEN

[00:05:01]

EVEN THOUGH I HAVE BOARD DISCUSSION LISTED LAST YEAR, AS I JUST MENTIONED, PLEASE FEEL FREE TO DISCUSS WITHOUT.

PACIFICALLY, WE DO NEED MORE INPUT ON BUDGET INITIATIVES THAT YOU WOULD LIKE DISCUSSED AND WE WILL GET EXEMPT SOME OF THAT. THERE IS SOME THAT I AM AWARE OF AND WE WILL HAVE THAT LISTED OUT AND WE ALSO NEED TO TALK ABOUT EXEMPTIONS, IF THERE IS ANY INTEREST IN FURTHER ANALYSIS ON THAT. ANY EXEMPTIONS HAVE TO BE SUBMITTED TO THE COUNTY TAX ASSESSOR BY JULY 1ST. IT MEANS YOU WILL HAVE TO BRING THOSE BACK IN JUNE. WHEN WE TALK ABOUT A CONSOLIDATED BUDGET, THIS IS WHAT WE MEAN. WE CALL THEM BUCKETS FOR LACK OF A BETTER WORD. WHAT WE WILL TALK ABOUT TODAY DOES INCLUDE ALL OF YOUR DIFFERENT COMPONENTS, WHICH IS GENERAL FUND , PRIMARY FUND, DEBT SERVICE CAPITAL, ECONOMIC DEVELOPMENT ZONE, TRANSPORTATION. THE NUMBERS THAT YOU SEE TODAY ENCOMPASS ALL OF THOSE. YOU HAVE SEEN THE SLIDE BEFORE. I ALWAYS SHOW THIS DURING OUR BUDGET DISCUSSIONS BECAUSE IT IS A VERY IMPORTANT CONCEPT THAT I TRIED TO BREAK DOWN A VERY COMPLICATED BUDGET PROCESS INTO ONE SLIDE. THESE ARE THE DIFFERENT COMPONENTS WE WILL TALK ABOUT AND WHAT IS IMPORTANT IS THAT AS THE BOARD MAKES DECISIONS REGARDING WHAT OF THESE COMPONENTS , IT NECESSARILY IMPACTS AT LEAST ONE, IF NOT MULTIPLE OF THE OTHER COMPONENTS. THERE IS A LOT OF GIVE AND TAKE WITH IN THIS . SOMETIMES I DESCRIBE IT AS A BALLOON. IF YOU POKE THE BALLOON ONE PLACE, THE AIR WILL HAVE TO GO SOMEONE -- SOMEWHERE ELSE BECAUSE IT IS ALL CONTAINED IN THE BALANCING ACT OF ALL OF THIS IS THE FINAL DETERMINATION THE BOARD MAKES IN THE PROCESS, SETTING THE PROPERTY TAX RATE. WITH THAT, IF THERE'S NO QUESTIONS, I WILL START OFF GOING THROUGH THE COMPONENT STARTING WITH OUR DEBT. JUST TO GIVE US HIGHLIGHTS OF WHERE WE HAVE BEEN, WE HAVE PAID OFF $22.7 MILLION IN DEBT OVER THE PAST 10 YEARS. THAT HAS RESULTED IN INTEREST EXPENSE. WE HAVE REFINED SINCE 46 POINT -- BACK WHEN THE RATES WERE NEXT TO NOTHING. THAT RESULTED IN ABOUT $5.7 MILLION OF SAVINGS. IF WE ACHIEVE THE BRAUN RATING OF DOUBLE A+. THAT IS THE HIGHEST BOND RATING HELD IN THE STATE OF TEXAS BY A SPECIAL-PURPOSE DISTRICT. AND WE GET ANNUALLY RATED BY OUR CREDIT RATING AT THE AGENCIES BUT WHAT THEY CONTINUE TO TALK ABOUT IN TERMS OF OUR RATING IS OUR STRONG FISCAL MANAGEMENT, OUR HISTORY OF SOUND RESERVES , CONSIDER BUDGETING PRINCIPLES, ARE LARGE AND DIVERSE TAX BASE AND ARE BEAUDETTE. HERE IS A LOOK AT WHERE WE ARE RIGHT NOW WITH OUR LOW DEBT OUTSTANDING DEBT AT THE END OF THIS YEAR WILL BE $25.7 MILLION . WE HAVE TWO BOND ISSUANCE IS OUT. OUR SALES TAX AND HOTEL TAX BONDS. THEY ARE RELATED TO THE CONVENTION CENTER, THE OUTSTANDING DEBT IS $7.9 MILLION AND WE PAY $2.9 MILLION ANNUALLY IN DEBT SERVICE. WE HAVE GEO BONDS THAT ARE PAID WITH BY A ONE CENT PROPERTY TAX, $17.8 MILLION OUTSTANDING THERE WITH AN ANNUAL DEBT SERVICE OF $3.1 MILLION. THE MOST IMPORTANT THING I WANT TO POINT OUT ABOUT THE DEBT IS BECAUSE WE HAVE REFINANCE OR PAY OFF ANYTHING, THERE IS NOT ANYTHING THAT WE CAN REALLY DO WITH THAT RIGHT NOW. THERE IS REQUIREMENTS THAT YOU HAVE TO WAIT 10 YEARS. THE NEXT THING THAT WE CAN DO OR WHEN THE BONDS BECOME CALLABLE, WHICH IS AFTER EXPIRATION DATE.

>> WHAT WAS THE ORIGINAL NUMBER FOR THE CONVENTION CENTER?

>> $28 MILLION? I WANT TO SAY SOMETHING LIKE THAT. I CANNOT

REMEMBER >> THANK YOU.

[00:10:02]

>> HERE IS OUR OUTSTANDING DEBT BALANCES. LOOKING FROM 2014 TO 2024, THE LAST 10 YEARS. THE PREVIOUS BOARDS OF DIRECTORS REALLY CONCENTRATED ON PAYING DOWN THE DEBT AND REFINANCING WHENEVER THERE WAS OPPORTUNITIES AND THIS IS THE RESULT. IF WE TAKE WHERE WE END UP IN 2024 WHICH IS $25.7 MILLION YOU CAN SEE THE FAIRLY RAPID CONTINUATION OF PAYING OFF THIS DEBT ACCORDING TO THE SCHEDULE FROM 2024 TO 2032.

OVER THE NEXT EIGHT YEARS. IF THERE IS NO OTHER DEBT ISSUED, WE WOULD BE FULLY PAID OFF IN 2032. AND THEN WE HAVE TALKED ABOUT THIS FOR. IT IS IMPORTANT TO REMEMBER IN TERMS OF OUR DEBT SERVICE PAYMENTS IN 2028 IS WHEN THE CONVENTION CENTER BONDS ARE PAID OFF. THAT WILL RESULT IN A $2 MILLION DECREASE IN OUR ANNUAL DEBT SERVICE PAYMENTS. AND THEN IN 2031, WE HAVE A LARGE CHUNK OF OUR GEO BONDS THAT ARE PAID OFF WHICH WILL RESULT IN ANOTHER DECREASE IN DEBT SERVICE PAYMENT. ANY QUESTIONS ON DEBT BEFORE I CONTINUE? OKAY, RESERVES. OUR RESERVES ARE EXTREMELY IMPORTANT TO US. IT REALLY IS ONE OF THE THINGS THAT ARE CREDIT AGENCIES COMMENT ON MOST WITH WHAT MAKES US UNIQUE COMPARED TO A LOT OF OTHER LOCAL GOVERNMENT . I ALSO THINK THERE IS A LOT OF MISUNDERSTANDING ABOUT OUR RESERVES AND UNDERSTANDABLY SO WHEN YOU HAVE A NUMBER THAT IS $147 MILLION. THAT IS A LOT OF MONEY. I THINK THERE IS, AGAIN, A MISUNDERSTANDING OF WHAT THAT MEANS AND HOW THAT IS ALLOCATED IN THE REGULATIONS THAT ARE AROUND THAT. THAT IS WHAT I WANT TO SPEND TIME TALKING ABOUT TODAY. WE HAVE A CAPITAL REPLACEMENT RESERVE, AS YOU ALL KNOW, WITH A BALANCE OF $41.6 MILLION IN IT. THAT IS FUNDED MOSTLY BY PROPERTY TAX ALLOCATION EACH YEAR OF $4.2 MILLION BUT WE ALSO ALLOCATE A PORTION OF BUDGET VARIANCES TOWARDS THIS. WHAT THAT ALLOWS US TO DO IS WE HAVE ALMOST $500,000 -- $500 MILLION OF CAPITAL ASSETS BETWEEN PARKS AND REC AND THE FIRE DEPARTMENT. AS THE ASSETS REACH THE END OF THEIR USEFUL LIVES, IT ALLOWS US TO BE ABLE TO REPLACE THOSE ASSETS OR MAKE CAPITAL REPAIRS ON THEM WITHOUT HAVING TO GO OUT TO THE BOND MARKET AND ISSUE BONDS, WHICH IS WHAT MOST CITIES DO. THAT IS WHAT PUTS US IN A VERY FAVORABLE LIGHT. THIS CAPITAL RESERVE MONEY IS NOT FROM NEW PROJECTS. WE DO NOT HOLD THIS AT BAY IN ORDER TO BUILD NEW AMENITIES. THAT IS A DECISION THAT EACH BOARD OF DIRECTOR MAKE SURE THAT EACH BUDGET SEASON WE HAVE TO SET ASIDE NEW MONEY FOR THIS THIS IS JUST FOR THE REPLACEMENT OF OUR CAPITAL . IF WE DO NOT HAVE THIS, WE WOULD HAVE TO GO OUT AND BOND FOR IT OR THAT ARE ASSET EXISTS BE ON THEIR USEFUL LIVES BEFORE WE COULD SAVE ENOUGH MONEY IN ORDER TO REPLACE THEM. OUR OPERATING RESERVES OF $31.8 MILLION IS TIED TO 25% OF GENERAL FUND OPERATING EXPENSES. THAT IS THE BASE REQUIREMENT FROM OUR CREDIT AGENCIES IN ORDER TO HAVE THE TYPE OF CREDIT RATING THAT WE DO. WE ARE NOT UNIQUE IN TERMS OF HOLDING 25% IN A RESERVE . MOST LOCAL GOVERNMENTS HAVE THAT AMOUNT. SOME CANNOT AFFORD THAT. SOME ARE 15% AND THE HAVE B CREDIT RATINGS. SOME HAVE MUCH MORE THAN ASPIRATE SOME HAVE 30 OR 35% BUT WE CAN KEEP OUR AA RATING WITH MAINTAINING A 25% BALANCE AND THAT IS WHAT WE DO. THAT IS WHAT THE 31.8 REPRESENTS. RIGHT NOW, ONE OF THE MAIN REASONS THAT OUR RESERVE BALANCE IT IS THE 140S IS BECAUSE OF THE NEXT THREE BLOCKS THAT YOU SEE HERE BUT IT TOTALS $48.2 MILLION. THE BOARD, LAST YEAR, AND THE YEAR BEFORE WITH IN THE BUDGET ALLOCATIONS, WE HAD A FAVORABLE VARIANCES. AND WE REALLOCATED A PORTION OF THIS THAT CAME FROM WHAT USED TO BE THE CORPORATION RESERVE TO FUND THESE. WE HAVE A RESERVE OF $18 MILLION TO FUND OUR PARKS NEEDS ASSESSMENT PROJECT. THAT IS ONLY A TINY PORTION BUT IF YOU RECALL THE ASSESSMENT IN AND OF ITSELF WERE HUNDREDS OF MILLIONS OF DOLLARS WORTH OF PROJECTS AND ALL WE DID WAS SET ASIDE $20 MILLION FOR THE HIGHEST PRIORITIES. AND THEN THE BOARD -- SORRY .

>> I HAVE A QUESTION. YOU MAY HAVE ALREADY ANSWERED BUT JUST TO CLARIFY. THE PARK NEEDS ASSESSMENT PROJECTS OF $18

[00:15:01]

>> IF THE BOARD DECIDES TO NOT RECEIVE -- PROCEED WITH MANY PROJECTS. A LOT OF THEM HAVE TO DO WITH THE ALDER BRIDGE SPORTS FIELD WHICH ARE ALREADY IN PROGRESS. YOU MIGHT LIKE THE

BATTING CAGES AT BARE BRANCH. >> THAT WAS ACTUALLY NOT A NEEDS ASSESSMENT PROJECT BUT THAT IS NEW MONEY THAT WAS FUNDED FOR THAT ONE. TO ANSWER YOUR QUESTION , IF THERE IS ANY PROJECT THAT THE BOARD NO LONGER CONSIDERS A PRIORITY , THEN THOSE MONIES CAN BE DISTRIBUTED ELSEWHERE.

>> THANK YOU FOR THAT CLARIFICATION.

>> IN FEBRUARY OF THIS YEAR, THE BOARD APPROVED CAPITAL CARRYOVERS. BOTH WERE PROJECTS THAT WERE BUDGETED FOR IN 2023 BUT FOR A VARIETY OF REASONS, WE WERE NOT ABLE TO COMPLETE THEM. THOSE FUNDS HAVE BEEN CARRIED OVER INTO 2024. THE OVERWHELMING MAJORITY ARE ALREADY IN PROGRESS. THESE WERE FUNDS THAT WERE CARRIED OVER THAT WE ARE NOW FINISHING. IN YOUR FIRE DEPARTMENT FACILITIES RESERVE, WE HAVE $14.7 MILLION.

YOU WILL HAVE AN AGENDA ITEM THIS EVENING ALLOCATING -- REQUESTING $3.9 MILLION REALLOCATED FOR THE EMERGENCY CENTER AND THE REMAINING APPROXIMATELY'S $11 MILLION WOULD GO TOWARDS FIVE RECONSTRUCTION BUT AGAIN, THAT IS A LARGE AMOUNT OF MONEY, THE $48 MILLION. THE MAJORITY OF THAT ARE PROJECTS THAT ARE ALREADY IN PROGRESS AND THAT WILL BE SPENT DOWN THIS YEAR. THE REST OF THESE ARE WAY SMALLER IN AMOUNT AND I WILL GO THROUGH THEM QUICKLY. THE RESERVE IS A CONTRACTUAL OBLIGATION OF $4 BILLION. OUR TRANSPORTATION FUND BALANCE OF 3.4 PERTAINS TO THE PARTING WITH HARRIS COUNTY ON THE GREENWAY SPRING CREEK TRAILS.

AGAIN WE HAVE A CONTRACT WITH THEM AND THIS IS OUR PORTION THAT WE ARE OBLIGATED TO. OUR DEBT SERVICE RESERVE ARE REQUIRED BY BOND COVENANTS. WE CANNOT TOUCH THOSE. WE DO HAVE A HOTEL TAX RESERVE OF $5 MILLION, CURRENTLY. THOSE FUNDS ARE CIRCLED HERE BECAUSE IN A WAY THEY ARE ON ALLOCATED. WHAT THE BOARD HAS DETERMINED IS THAT WOULD BE A FUNDING SOURCE FOR POTENTIAL ECONOMIC DEVELOPMENT INITIATIVES. THAT IS WHY WE ARE RESERVING THAT AMOUNT. THERE IS NO CONTRACTUAL OR LEGAL OBLIGATIONS TIED TO THAT RESERVE.

>> SUCH AS WHAT TYPE OF ECONOMIC DEVELOPMENT

INITIATIVES? >> FOR INSTANCE, IF WE ISSUED HOTEL TAX BONDS TO PAY FOR A PERFORMING ARTS CENTER. THIS IS THE MONEY THAT WOULD BE USED TO HELP FUND ANNUAL DEBT SERVICE

ON THIS. >> THANK YOU.

>> WE HAVE A CULTURAL EDUCATION RESERVE WHICH IS OUR SHARE OF THE ADVANTA MISSION TAX, WHICH THE PAVILION IS THE ONLY WANTED ENTITY RIGHT NOW BUT THE LEGISLATION DEFINES HOW WE CAN PAY FOR THAT BUT IT CAN ONLY BE PAID FOR CULTURAL EVENTS AND EDUCATION. THE WOODLANDS, AS YOU ALL KNOW, THAT IS A SEPARATE ENTITY. OUR HEALTH INSURANCE HAVE A RECOMMENDATION. THEN WE GET DOWN TO THE BOTTOM NUMBER, WHICH IS OUR DESIGNATED FUND BALANCE $6.7 MILLION. WHAT THAT REPRESENTS OUR FUNDS WHERE WE WERE FAVORABLE IN REVENUES AND/OR EXPENSES IN 2023 A LITTLE CARRIED OVER FROM 2022 THAT ARE COMPLETELY AND DESIGNATED RIGHT NOW. THIS IS AN OPPORTUNITY OF THE BOARD -- LET ME POINT OUT ONE THING.

THIS IS GOOD FOR ONE TIME TYPE OF PURCHASES. THIS IS NOT SOMETHING THAT YOU USED TO LOWER THE TAX RATE BECAUSE IT IS JUST A SET SAVINGS ACCOUNT , IF YOU WILL, OF $7.6 MILLION.

IF YOU USE THIS TO LOWER THE RATE IN TWO YEARS, YOU HAD DEPLETED YOUR FUND AND FACE WITH NOW WE HAVE TO RAISE THE RATE IN ORDER TO GET BACK TO WHERE WE WERE. THIS IS THE ONE TIME MONEY. IN PREVIOUS YEARS AND PREVIOUS BOARDS, THEY USE THIS TO PAY OFF DEBT BURDEN THAT WAS THEIR FIRST PRIORITY ANY TIME WE HAVE EXCESS FUNDS. AND THAT IS WHY YOU SAW THE DEBT SCHEDULE A WHILE AGO. WHAT THIS IS NOW GOOD FOR IS TO PAY FOR CAPITAL ITEMS. THOSE ARE ONE-TIME ITEMS AND DO NOT HAVE ONGOING EXPENSES WITH IT. WE'RE GOING TO GO THROUGH TOWARDS THE END, A LIST OF PROJECTS THAT THIS BOARD AND TO A DEGREE STAFF HAS ALREADY IDENTIFIED. WE CAN USE THIS FUNDING TO MAKE PROGRESS ON THE PROJECTS IF THE BOARD AGREES TO FUND THEM.

COMPLETELY UP TO THE BOARD. STAFF CANNOT TOUCH THIS RESERVE

[00:20:03]

>> YOU ARE SAYING WE HAVE A LOT OF DOLLARS THAT COULD POSSIBLY

BE USED TOWARDS ONE THING ? >> MULTIPLE THINGS. THE ONLY IMPORTANT THING THERE IS A NEED TO BE TOWARDS OF ONE TYPE TYPE

ITEM. >> WHERE IN THE LIST WITH THE RENOVATION OF THE TOWNSHIP OFFICES AND BUILDING BE?

>> IT IS ALREADY IN OUR CAPITAL REPLACEMENT RESERVE. THERE IS $2.5 MILLION APPROXIMATELY THAT IS ALREADY SET ASIDE IN THE

RESERVE. >> WE WANTED TO INCREASE MAINTENANCE DOLLARS AND WE ARE 50 YEARS OLD. WHERE'D THAT

COME FROM? >> IT DEPENDS. IF THERE IS A ONE-TIME TYPE OF PROJECT, LIKE THE PAINTING OF A BRIDGE. WE CAN PULL THAT OUT OF THE UNDESIGNATED FUND BALANCE. IN TERMS OF ONGOING OPERATIONS, LIKE WE WANT TO INCREASE THE FREQUENCY IN WHICH WE PAINT BRIDGES AND GET IT ON A THREE-YEAR CYCLE. IF WE WANT TO INCREASE ANY TYPE OF ONGOING MAINTENANCE STANDARD, MOWING, CUL-DE-SACS , IF WE WANT TO START ADDING ADDITIONAL LANDSCAPING AROUND NEIGHBORHOOD SITES . ANY OF THOSE TYPES OF THINGS THAT WE ARE GOING TO DO ON A ROUTINE BASIS WOULD HAVE TO COME OUT OF YOUR ONGOING OPERATIONS, WHICH IS NEXT YEAR'S SALE TAX OR PROPERTY TAX. ANY OTHER QUESTIONS ON HERE?

>> REGARDING MR. BABY'S COMMENT, IF WE WERE TO INCREASE FREQUENCY OF MAINTENANCE OPERATION REGARDLESS IF IT IS A BRIDGE OR CUL-DE-SAC OR ANY OTHER ACTIVITIES, WOULD THAT NOT REQUIRE EXTRA EMPLOYEES AS WELL?

>> IT COULD. DEPENDING ON WHAT THE NEW STANDARD -- MAINTENANCE STANDARD ADOPTED BY THE BOARD. AS STAFF, WE ARE WORKING ON THAT. WE HAVE HEARD THAT BROUGHT UP AS A MATTER. WE ARE DEVELOPED THING THE PLANS FOR STAFFING , EQUIPMENT AS WELL AS LOOKING AT CONTRACTED SERVICES ON HOW TO BEST ADDRESS THAT.

THERE WILL BE A COST AND IT WILL HAVE TO COME FROM

OPERATING ONGOING MONEY. >> THANK YOU.

>> THIS IS JUST ANOTHER WAY TO LOOK AT THAT VERY BUSY SCHEDULE BROKEN OUT INTO A PIE CHART. YOU CAN SEE HERE, AGAIN, THE LARGEST SECTIONS ARE COMMITTED TO OUR CAPITAL PROJECTS. THE $48.2 MILLION , WHICH WE TALKED ABOUT, IS ALREADY SET ASIDE FOR THE FIRE DEPARTMENT FACILITIES OR OUR CAPITAL CARRYOVERS. WE TALKED ABOUT OUR CAPITAL REPLACEMENT RESERVE. WE TALKED ABOUT OUR OPERATING RESERVE FOR THOSE RESERVE THAT HAVE TO DO WITH CONTRACTILE OPERATIONS TO BE DONE ABOUT 41 -- $14.1 MILLION. THIS IS SORT OF A SIMPLE CHART BREAKING OUT ALL OF THOSE PIECES BUT I WILL NOT SPEND A TON OF TIME ON THIS BUT THIS IS IN YOUR MATERIALS. THESE ARE THE THREE RESERVES THAT HAVE A SYNDICATE IMPACT ON OUR TOWNSHIP'S CREDIT AGENCY RATING. ANYTHING THAT WE WOULD PULL FROM THIS RESERVE OR ANY TYPE OF POLICY CHANGES TO THIS RESERVE WOULD, POTENTIALLY HAVE AN IMPACT. WE WOULD HAVE TO BE VERY CAREFUL AND THOUGHTFUL ABOUT HOW WE WOULD GO ABOUT CHANGING ANY OF THESE RESERVES.

THIS IS WHAT I AM CALLING ARE TEMPORARY RESERVES THAT ARE DEPLETED AS SPECIFIC PROJECTS ARE COMPLETED. WE TALKED ABOUT THE PARKS NEED ASSESSMENT RESERVE, THE FIRE DEPARTMENT FACILITIES AND OUR CAPITAL CARRYOVERS. THESE ARE RESERVES THAT ARE TIED TO OUR CONTRACTUAL OBLIGATIONS. THAT IS OUR TRANSPORTATION FUND BALANCE. THAT IS THE GREEN RAY TRAILS. OUR CULTURAL EDUCATION RESERVE IS RESTRICTED BY LEGISLATION. AND THEN WE HAVE A CONTRACT WITH HOWARD HUGHES ON THE COMPREHENSIVE COMMUNITY SERVICES AGREEMENT. THOSE REALLY CANNOT BE TOUCHED. THEY ARE ALREADY COMMITTED. THESE ARE SOME OF OUR MISCELLANEOUS RESERVES. WE HAVE AN ACTUARIAL REQUIREMENT TIED TO OUR SELF-FUNDED HEALTH INSURANCE.

AND THEN WE JUST HAVE $100,000 STRAGGLER THAT HAS BEEN LEFT OVER FOR YEARS THAT WE COULD PUT TOWARDS A LETTER DRAIN IS RESERVE. I WILL RECOMMEND THAT WE COLLAPSE THAT IN OUR GENERAL FUND THIS YEAR. FINALLY, THESE ARE THE TWO WHERE WE HAVE DISCRETION. THE BOARD HAS DISCRETION ON HOW THEY ARE SPENT. THE $5 MILLION IS KIND OF COMMITTED. IF WE WANT TO MAKE SURE WE HAVE FUNDS SET ASIDE , NON-PROPERTY TAX FUND SET ASIDE TO ADDRESS ECONOMIC INITIATIVES BUT THERE IS NO CONTRACTUAL OR LEGAL REQUIREMENT.

[00:25:02]

>> WE WENT THROUGH THE FLOOD AND DRAINAGE ESERVE. WHERE ARE WE GETTING MONEY THAT IS REQUIRED TO ADDRESS THE RECENT

EVENTS? >> WE DO NOT HAVE MONEY SET ASIDE FOR BAD BECAUSE IT IS NOT OUR OBLIGATION. IN THE PAST, WE DID HAVE A RESERVE. FOR INSTANCE, WE HELP FUND ONE TIME SOME FLOODGATE IS TO PUT UP SOME ADDITIONAL FLOOD GAUGES.

IT WAS MINIMAL COST OF $150,000. THAT WAS OUR PART. WE COULD DO SOMETHING MINIMAL LIKE THAT BUT WE DO NOT HAVE ANYTHING SET ASIDE TO ADDRESS MAJOR ISSUES.

>> I WAS WONDERING WHY THAT WAS. IF IT WAS SO SMALL.

>> WHEN WAS THAT DONE? >> AT LEAST FIVE , SIX OR SEVEN YEARS AGO. IT HAS BEEN HANGING OUT FOR A WHILE. THE MOST THAT IT HAD IN IT WAS THREE OR 400. I KNOW WE HAD A DRAINAGE ENGINEER LOOK AT THINGS WITH INFRASTRUCTURE BECAUSE WE HAVE AN INFRASTRUCTURE TEAM. IT WAS NOT TIED DIRECTLY -- IT WAS OUTSIDE OF WHAT THOSE ARE REQUIRED TO DO.

>> WHAT HAPPENS UNDER OUR AGREEMENTS TO HAVE ADDITIONAL LANDSCAPING OR OUR STREETSCAPE AGREEMENT AND THINGS THAT WE DO, BEAUTIFICATION STUFF. OR NOW THE WATERWAY. WHAT DO WE DO IF THERE IS AN EVENT? WHERE DOES THE MONEY COME FROM TO

ADDRESS THINGS LIKE THAT? >> WE ARE INSURED FOR ALMOST ALL OF THAT IN TERMS OF LARGE EVENTS. WE WOULD PAY A DEDUCTIBLE. OTHER THAN THAT, WE WOULD END UP GOING TO AN ALLOCATED RESERVE AND ASKED TO PULL MONEY OUT OF THAT TO

ADDRESS IT. >> THANKS.

>> I AM GOING TO MOVE ON FROM RESERVES AND INTO OUR OPERATING AND CAPITAL EXPENDITURES. THIS WAS THE 2024 BUDGET THAT WAS ADOPTED BY THE BOARD . JUST AS A REMINDER, $195 MILLION IN EXPENDITURES. YOU CAN SEE THE LARGEST COMPONENTS ARE, BY FAR, IT IS CAPITAL , PARKS AND RECREATION, FIRE DEPARTMENT AND OUR CONTRACTED LAW ENFORCEMENT. THIS IS FAIRLY CONSISTENT AMONGST YEAR , AFTER YEAR, AFTER YEAR. THIS IS NO SURPRISE -- THIS SHOULD NOT BE A SURPRISE TO ANY OF US. THIS IS TAKING THE SAME HUNDRED $95 MILLION AND LOOKING AT IT BY CATEGORY TYPE . AGAIN, NO SURPRISE. YEAR AFTER YEAR SALARY, BENEFITS AND CONTRACTED SERVICES AND CAPITAL PROJECTS ARE OUR LARGEST COMPONENT OF OUR EXPENDITURES. THIS IS A LOOK AT OUR CAPITAL PROJECTS FUND FOR 2024. TOTAL CAPITAL PROJECT OF $44.8 MILLION. I'M NOT GOING TO GO THROUGH DETAILS ON THE PROJECTS WE GET TO DO THAT IN AUGUST WHERE WE GO THROUGH SOME MORE DETAILS. THE PIE CHART AT THE BOTTOM LEFT IS WHAT IS REALLY IMPORTANT HERE. YOU CAN SEE OUT OF ALL OF THAT THAT ONLY 4% IS SPENT FOR THE GENERAL FUND AND THAT IS FOR THE NEW PROJECTS. THOSE ARE PROJECTS WE ARE NOT REPLACING.

THAT IS WHEN WE INTRODUCE -- IF THE BOARD IS INTRODUCED TO A NEW AMENITY, WE FIND IT OUT OF THE GENERAL FUND . IT IS ALWAYS A VERY SMALL PORTION OF OUR OVERALL BUDGET. WE CONCENTRATE

ON THE EXISTING ASSET . >> ONE ON CAPITAL PROJECTS , I MUST BE IN ERROR. I THOUGHT WE HAD A PROJECTS FUND FOR PARKS

AND RECREATION ADDITION ? NO? >> WE SET UP THE 2022 NEEDS ASSESSMENT. THOSE WERE NEW PROJECTS.

>> I AM TALKING ABOUT THEIR FACILITIES.

>> LAST YEAR, WE TRANSFERRED THAT INTO THE CAPITAL RESERVE , REPLACEMENT RESERVE. THERE IS $1,000,750? IT WILL END UP BEING MORE SO THAT WILL BE A BUDGET DISCUSSION WE NEED TO HAVE. THAT IS WHAT IS SET ASIDE RIGHT NOW.

>> THANK YOU. YOU MAKE ANY QUESTIONS ON CAPITAL OR EXPENSES? THAT WAS A BRIEF OVERVIEW. GOING TO GET INTO REVENUES NOW. LOOKING AT OUR REVENUE SOURCES, WE HAVE TALKED QUITE A BIT ABOUT THIS AS WELL. OUR SALES TAX REVENUE IS OUR LARGEST CONTRIBUTOR TO OUR OVERALL REVENUE SOURCES AT 47% HOTEL TAX MAKES UP ANOTHER 6%. WE OFTEN HOW WE HAVE 50% THAT IS FUNDED BY HOTEL TAX. 29% IS FUNDED BY OUR PROPERTY TAX RATE. WE HAVE TALKED ABOUT HOW UNIQUE WE ARE AS A COMMUNITY THAT OUR TAX RATE ONLY FUNDS 29% OF OUR OVERALL EXPENDITURES

[00:30:04]

>> HERE IS LOOKING AT OUR REVENUE OF $159 MILLION. IF YOU LOOK AT THE EXPENDITURE PIE CHART, IT WAS $177 MILLION BUT IT IS NOT BECAUSE WE DON'T HAVE A BALANCED BUDGET, IT IS BECAUSE MUCH OF THE CAPITAL IS PAID FOR BY THE RESERVES, LIKE WE TALKED ABOUT. I GET QUESTIONS ABOUT THAT ALL THE TIME. WHY ARE WE NOT BALANCE? WE ARE. HERE IS A LOOK AT OUR REVENUES BROKEN OUT BY THE DIFFERENT COMPONENTS OF THE HUNDRED $59 MILLION. I WILL NOT READ THROUGH THEIR BUT AS WE JUST DISCUSSED SALE TAX IS BY FAR OUR LARGEST . GETTING INTO SOME OF THE PLANNING FOR THIS UPCOMING BUDGET, WHAT WE HAVE LISTED HERE ARE THE 2024 BUDGET , WHAT WAS ADOPTED. AND THEN WHAT WE ARE FORECASTING, YOU CAN SEE IN THE FARRIGHT COLUMN SOME OF THE ADJUSTMENTS WE HAVE MADE. I WILL SAY WE ARE EARLY ON IN THE PROCESS. WE DO NOT HAVE TO NAIL THIS DOWN UNTIL AUGUST. WE HAVE THREE MORE MONTHS. HE WILL TAKE ADVANTAGE OF THE THREE MONTHS. TO BRING YOU THE ABSOLUTE BEST FORECAST THAT WE CAN. THE NUMBERS THAT YOU SEE HERE, WE ARE PRETTY COMFORTABLE BASED ON WHAT THE NUMBERS THAT WE HAVE NOW . WE THINK HOTEL TAX IS GOING TO COME IN AT 10.2 MILLION DOLLARS AT LEAST COMPARED TO 9.9 MILLION PER WE THINK ARE SEVERANCE TAX IS $7.4 MILLION BUT THESE ARE CONSERVATIVE NUMBERS. WE THINK INTEREST WILL COME IN AT 4.1 , HIGHER THAN 3.7. WHAT IS IN YELLOW IS THE BIG? AND THAT IS THE SALES TAX.

YOU HAVE BEEN HEARING FROM KELLAN IN THE MONTHLY REPORTS, FINANCIAL REPORTS THAT WE HAVE SOME CHALLENGES RIGHT NOW WITH SALES TAX. AND WE WILL GO THROUGH SOME OF THOSE DETAILS.

>> I WILL START OFF WITH HOTEL OCCUPANCY TAX. WE HAD A RECORD YEAR IN 2023 AND WE WILL HAVE ANOTHER RECORD YEAR IN 2024. WE ARE TRACKING ON A CONSERVATIVE BASIS BEING ABLE TO GENERATE $10.2 MILLION. WE'VE GOT FOUR MORE MONTHS AND THAT NUMBER MAY GROW BUT WE THINK IT WILL BE THE 9.9 MILLION. THAT IS YOUR VISIT THE WOODLANDS TEAM THAT IS RESPONSIBLE FOR THAT. BRAD BAILEY, DIRECTED RICHARD FRANKS AND DIRECTOR NELSON ARE ALL THE MEMBERS ON THAT BOARD AND HAVE DONE A TREMENDOUS JOB IN MAKING SURE THESE NUMBERS LOOK LIKE THEY DO. THANK YOU VERY MUCH.

HERE IS A LOOK AT OUR LATEST HOTEL TAX REPORT INFORMATION.

HOTEL TAXES IS REPORTED ON A TWO-MONTH LAG PRINT THESE APRIL NUMBERS THAT YOU ARE SEEING APPLY TO FEBRUARY BUT WE ACCOUNT FOR THEM WHEN WE RECEIVE THEM. YOU CAN SEE DOWN AT THE BOTTOM WE ARE TRACKING ABOUT $225,000 OR ALMOST 8% OVER THE SAME PERIOD OF LAST YEAR AND WE ARE 150,000 OR 5.1% OVER BUDGET . AGAIN, VERY GOOD NUMBERS. JUST A REMINDER, HERE IS OUR HOTEL TAX AND HOW IT IS ALLOCATED. IN TOTAL WE HAVE $9.9 MILLION THAT WAS BUDGETED AND MADE UP OF A BASE 7% HOTEL TAX, WHICH IS DEDICATED AND PLEDGE, I SHOULD SAY TO DEBT SERVICE BY OUR BOND COVENANTS. AND THEN WE HAVE A SUPPLEMENTAL 2% TAX WITH HIS PLEDGE TO VISIT THE LITTLE WINS. AFTER THAT TAX BASE, YOU CAN SEE THE DEBT SERVICE IS WHAT WE HAVE TO PAY ON THE CONVENTION CENTER BONDS. A PORTION OF IT, 1.5 GOES TO VISIT THE WOODLANDS. AND IN THE HOTEL TAX RESERVE IS ON AN ANNUAL BASIS WITH WHAT GOES INTO THE RESERVE. RIGHT NOW IT HAS A $5 MILLION BALANCE IN THE PREVIOUS SLIDES. THIS YEAR WE WILL ADD $3.3 MILLION TO IT BASED ON OUR PROJECTIONS. BY THE END OF THIS YEAR, THAT RESERVE WILL HAVE $8.3 MILLION IN IT. IF YOU GO FURTHER IN THE FIVE-YEAR PLAN, EACH YEAR 3.3, 3.5, $3.6 MILLION AS WE GO THROUGH THE FIVE-YEAR PLAN. WE

[00:35:10]

THAT IS A GREAT ENDING SOURCE TO USE FOR ECONOMIC DEVELOPMENT PROJECTS EITHER AS A DOWN PAYMENT ON ONE OR TO LEVERAGE IT FOR DEBT SERVICES ON A BOND ISSUANCE. AGAIN, WE ARE VERY UNIQUE AND BEING ABLE TO HAVE SOMETHING LIKE THIS. IT IS A NON-PROPERTY TAX . THIS IS STRAIGHT FROM THE HOTEL TAX

THAT WE ARE ABLE TO DO THAT. >> AGAIN, IF WE WERE A CITY THERE WOULD BE A LOT OF STIPULATIONS ON THIS TAX .

>> ABSOLUTELY. AND IT IS VERY RESTRICTIVE.

>> AS WE FORECAST AND WE HAVE ANOTHER HOTEL COME IN. THAT IS SOMETHING THAT WE CAN PLAY IN ?

>> EXACTLY. THAT WOULD JUST ADD TO THIS. THIS IS A VERY, VERY IMPORTANT THING TO REMEMBER. THIS IS A VERY IMPORTANT SOURCE OF REVENUE. IT ALLOWS US TO HAVE A LOT OF FLEXIBILITY AND

DO A LOT OF GOOD THINGS. >> NICK SAYS HE WILL HEAD OVER $10 MILLION THIS YEAR FOR SURE.

>> IF YOU HAVE TO DO IT YOURSELF.

>> , I WOULD LIKE A LITTLE CLARIFICATION ON THIS FOR THE RESIDENTS AT HOME. IN THE HOTEL TAX WORLD , IF YOU ARE GOING TO LEVERAGE BONDS ON A HOTEL TAX, THOSE ARE BONDS THAT ARE KNOWN AS REVENUE BONDS, RIGHT? THE DIFFERENCE BETWEEN A GENERAL OBLIGATION BOND AND A REVENUE BOND IS BECAUSE A GENERAL OBLIGATION WOULD HAVE TO GO TO THE COMMUNITY AND ASK THEIR PERMISSION TO ISSUE THOSE BONDS BECAUSE IT IS ON THEIR PROPERTY

TAX. IS THAT CORRECT? >> IT REQUIRES FOR APPROVAL .

>> REQUIRES A REFERENDUM OF THE PEOPLE.

>> CORRECTS. >> ON THE OTHER HAND, IF IT WILL BE A LARGE DEBT OBLIGATION, THERE IS NOTHING THAT WOULD RESTRICT THIS BOARD IN THE INTEREST OF TRANSPARENCY OF GOING TO THE PEOPLE AND ASKING THE APPROVAL, THEREBY IN. SOMETHING ALONG THE LINES OF $80 MILLION OR HUNDRED MILLION DOLLARS DEBT SERVICE. THERE IS NOTHING AGAINST THAT ,

ASKING THEREBY IN ON THAT. >> BECAUSE I AM NOT A BONDAGE OR ANYTHING, I WOULD HAVE TO ASK THAT QUESTION. WE WOULD HAVE TO GET ADVICE ON THAT. ALL I KNOW -- DO YOU WANT TO --

>> YOU ARE RIGHT, WE WOULD HAVE TO ASK BOND COUNCIL WHETHER YOU DO AND -- AN ADVISORY VOTE ON WHETHER THIS COMMUNITY SUPPORTS

THAT. >> WE WOULD HAVE TO ASK OUR

BOND COUNCIL. >> COULD YOU DO THAT AND GET BACK WITH US? I THINK IT IS IMPORTANT IF WE LOOK AT SOMETHING BIG IN THE FUTURE. WE DID NOT DO THAT WITH THE

CONVENTION CENTER. >> WE HAVE NEVER DONE THAT WITH

ANY BOND ISSUANCE. >> IT HAS ONLY BEEN AROUND FOR 10 YEARS. I GUESS OTHERS COULD. I DON'T KNOW IF THEY'VE EVER DONE IT. IF THERE IS A BIG PROJECT LIKE A PERFORMING ARTS CENTER OR SOMETHING ALONG THOSE LINES, WOULD THAT BE SOMETHING THAT WOULD BE ALLOWED OR COULD WE DO THAT ? THAT IS WHAT I WOULD LIKE A LEGAL OPINION ON THAT.

>> WE CAN TALK TO OUR BOND COUNCIL.

>> HYPOTHETICALLY . >> LET'S. ANY OTHER QUESTIONS?

>> WANT TO LOOK AT THE MIXED BEVERAGE TAX REVENUE?

>> WHEN WE FIRST DID THIS THE COMPTROLLER GAVE US AN ESTIMATE OF ABOUT $900,000. WE LOOK AT US AND SAID WE THINK WE CAN DO $1.2 MILLION. THAT IS WHAT WE BUDGETED OUR REPORTS, THIS IS THE LATEST ONE. WE JUST GOT IT IN YESTERDAY, I BELIEVE ELLAN DID THIS FOR US. SHOWS US THAT WE ARE $100,000 OVER BUDGET FIVE MONTHS IN PRINT WE ARE PROJECTING $1.4 MILLION FOR THE

YEAR. >> WELL DONE, DIRECTOR BAILEY.

>> TEAM EFFORT ESPECIALLY FOR REPRESENTATIVE TOTH AND SENATOR CRAYTON FOR HELPING US GET IT DONE. WHEN WAS THE FIRST MONTH

WE COLLECTED THIS TAX? >> IT WENT INTO EFFECT IN OCTOBER OF '23 DECEMBER WAS THE FIRST MONTH WE RECEIVED A

DEPOSIT FOR A TWO MONTH LAG. >> AS WE GET THROUGH THE BUDGET PROCESS, I WOULD LIKE TO LOOK AT OUR ONE YEAR ANNIVERSARY DOING HERE IS HOW MUCH WE HAVE COLLECTED IN ONE YEAR. ALL THIS MONEY IS GOING TO AUSTIN AND NOW IT STAYS HERE IN THE WOODLANDS. WE DO A LOT OF PROCLAMATION IN THE DL. I WANT A BIG CHECK UP FRONT THAT WE CAN TAKE A PICTURE OF.

[00:40:04]

>> WE WILL DO THAT. >> THANK YOU.

>> YOU ARE WELCOME. SALES AND USE TAX REVENUE . WE DID HAVE A RECORD YEAR IN THE 2024 BUDGET OF $75.7 MILLION. WE DID FORECAST ABOUT A 3% INCREASE -- SORRY, IN 2023 WE HAD A RECORD YEAR ABOUT $72 MILLION. WE BUDGET A 72% INCREASE AT $75.7 MILLION BASED ON DATA THAT WE WERE SEEING AT THE TIME. AT THIS POINT IN TIME , AS I MENTIONED BEFORE WE HAD QUESTION MARKS BY THE FORECAST. AND THIS IS WHAT ART SALES TAX LOOKS LIKE AT THE MOMENT THROUGH THE MAY REPORT. WE ARE ABOUT $977,000 BELOW BUDGET REPRESENTING ABOUT 3% . LET ME GO THROUGH A COUPLE MORE SLIDES AND WE WILL COME BACK TO THIS ONE. THIS IS THE DIFFERENT CLASSIFICATION OF SALES AND USE TAX THAT THE ACCOUNT -- TOWNSHIP COLLECTS. THIS IS HOW IT IS REPORTED TO US FROM THE TEXAS COMPTROLLER. YOU CAN SEE HERE RETAIL TRADE MAKES UP OUR LARGEST CATEGORY AT 48% FOLLOWED BY ACCOMMODATIONS AND FOOD SERVICE AT 13%. AND YOU CAN BE AT GOING ON FOR MANUFACTURING WITH OUR NEXT CATEGORY. THE TWO THINGS THAT I HAVE BOXED IN RED ARE THE TWO INDUSTRY CODES WHERE WE ARE HAVING SOME CHALLENGES RIGHT NOW. IF YOU LOOK -- IF WE COMPARE THE FOUR MONTHS ENDING IN APRIL THROUGH THE FOUR MONTHS IN APRIL '24, THIS IS WHERE WE ARE AT. THE REASON THAT WE FELT GOOD OVERALL IS BECAUSE WHEN YOU LOOK AT OUR TOP THREE CATEGORIES THAT GENERATE SALES TAX AND YOU LOOK BACK AT IT HERE, THAT IS ALMOST 65% OF OUR THINGS. THOSE ARE INCREASING. WE ARE SEEING POSITIVE TRENDS WITH RETAIL TRADE AT 4.7%. FOOD SERVICE, 6.8% MANUFACTURE, 4%. THOSE ARE ALL GOOD NUMBERS. THOSE ARE BEING OFFSET BY DECREASES IN TRANSPORTATION , WAREHOUSING AND IN WHOLESALE. BOTH OF THOSE CATEGORIES, RIGHT NOW, THE COMPANY'S. BY LAW, THEY ARE CONFIDENTIAL. I CANNOT GO INTO DETAILS. WHAT I CAN TELL YOU IS THAT THEY ARE OIL AND GAS COMPANIES THAT ARE IMPACTING THESE. IN OIL AND GAS COMPANIES, SOMETIMES IT IS THE TRANSPORTATION OF THE OIL THAT WE CAN COLLECT SALES TAX ON. SOMETIMES IT IS THE EQUIPMENT LIKE THE MANUFACTURING OF TUBING AND PIPES THAT WE CAN COLLECT SALES TAX ON. THAT IS WHY YOU SEE THIS PLAYING OUT THAT WE HAVE AN OIL AND GAS CATEGORY , WHICH IS SORT OF JUST STAYING FLAT. THESE ARE THE TWO AREAS WHERE WE ARE HAVING ISSUES. PART OF IT IS BECAUSE AS WE HAVE FOR AND REPORTING, THERE HAS BEEN A COMPANY WHO USED TO BE HEADQUARTERED HERE, WHO IS NO LONGER HEADQUARTERED HERE. ONCE THE HEADQUARTERS ARE NOT HERE, YOU LOSE THE SALES TAX REVENUE.

I HESITATE TO SAY THIS. WE DID GET A LITTLE BIT OF GOOD NEWS .

KELLAN TOLD ME TODAY AND LOOKING AT THE ANALYSIS BUT WE NEED TO CONFIRM THAT ONE OF THE COMPANIES THAT HAS NOT MADE A DEPOSIT IN A WHILE JUST MADE A DEPOSIT.

>> A LARGE ONE? >> IT WAS NOT HUGE. IT WILL NOT MAKE UP THE DIFFERENCE BUT IT IS A BEGINNING. WE DO NOT KNOW WHAT THAT MEANS. WE DO NOT KNOW IF IT WAS A ONE-TIME DEPOSIT AND LEFT OVER OR IF SOMETHING HAS GONE BACK ON TRACK OR IF THERE IS A SUBSIDIARY. THERE IS A LOT OF DIFFERENT THINGS THAT CAN AFFECT THIS. SALES AND USE TAX LAW IS COMPLICATED. THAT IS A SIGN ON THE RISE AND WE WILL HAVE TO SEE. THAT IS WHY I'M TELLING YOU WE NEED EVERY BIT OF THE NEXT THREE OR FOUR MONTHS TO FIGURE THIS OUT. THAT COULD BE POSITIVE. REGARDLESS OF WHETHER THAT ENDS UP MATERIALIZING OR NOT, THE FACT THAT THESE OTHER THREE CATEGORIES ARE STRONG. NOT ONLY JUST THESE THREE BUT WHEN YOU LOOK BACK AT ALL OF THESE, ALMOST ALL ARE TRENDING IN THE RIGHT DIRECTION. THEY'RE JUST BEING OFFSET BY THE TWO IN RED. WE ARE HOPEFUL THAT WE WILL BE ABLE TO MEET BUDGET . YEARS PASSED, WE HAVE BEEN ABLE TO EXCEED BUDGET BY A PRETTY GOOD AMOUNT ON SALES TAX. I DO NOT THINK THAT WILL HAPPEN THIS YEAR. WE WILL BE PLEASED IF WE CAN MEET BUDGET AND I THINK WE WILL.

>> I DON'T KNOW IF THIS IS THE PERFECT TIME OR NOT, MONIQUE. I WOULD LIKE AT SOME POINT AND MAYBE BUDGET WORKSHOP THREE OR FOUR . IT WILL TAKE TIME TO DIAL IN ON HOW ALL OF THIS WORKS. IF YOU HAVE AN OIL COMPANY THAT HAS A MASSIVE PIPELINE NETWORK, YOU KNOW, DOESN'T HAVE A CASH REGISTER GOING ? IF THERE HEADQUARTERED HERE, DOES IT RING HERE? NO

[00:45:06]

RECRUITING CORPORATIONS THAT ARE HEADQUARTERED HERE, IF YOU LOOK AT HOW MERGERS AND ACQUISITIONS HAVE AFFECTED OUR CORPORATE HEADQUARTERS HERE, I WOULD LOVE TO SEE THE RESEARCH STUDY OF HOW MUCH MONEY WAS PUT INTO ARGUMENT AS FAR AS DONATIONS, MATCHING GIFTS , SPONSORING , YOU KNOW, NONPROFITS , HOMES -- I MEAN, WORKERS THAT LIVE HERE. IT HAS TO BE ASTRONOMICAL. HOW DO WE GO ABOUT PUTTING A BUCKET, SO TO SPEAK, THAT IS DEDICATED TO FIGURE OUT HOW WE WANT TO DO THAT TO REALLY GET AGGRESSIVE TO GO MICRO TARGET BY COMPANIES THAT WE WANT TO COME HERE AND STAY HERE AND RELOCATE HERE? I THINK IT IS SOMETHING THAT IS IMPORTANT ESPECIALLY AS YOU LOOK AT SOME OF THE ONES THAT HAVE LEFT.

>> WE CAN DO SOME RESEARCH ON THAT. WE WILL NOT HAVE ALL OF THOSE ANSWERED. WE WILL DO THE BEST THAT WE CAN. IT IS VERY, VERY COMPLICATED. WE HAVE RESOURCES AT THE COMPTROLLER'S OFFICE THAT CAN HELP WITHOUT GOING INTO THE CONFIDENTIALITY ISSUE. I UNDERSTAND WHAT YOU ARE ASKING AND WE WILL GET

SOMETHING. >> THANK YOU.

>> YOU ARE WELCOME. THIS IS LOOKING AT IT IN TERMS OF DOLLARS. AGAIN, YOU CAN SEE THAT SOME OF OUR TOP THREE CATEGORIES AND WHAT THEY HAVE GONE BY. LIKE WE SAID, THEY ARE BEING MORE THAN OFFSET BY THE OTHER TWO CATEGORIES. I WILL MOVE ON FROM SALES TAX UNLESS THERE IS MORE QUESTIONS. WE WILL CIRCLE BACK IN JUST A BIT. OUR TAXABLE PROPERTY VALUES .

WE DID GET THE PULMONARY TAX RULES FROM MONTGOMERY COUNTY , MONTGOMERY APPRAISAL DISTRICT IN HARRIS COUNTY. I'M GOING OFF MEMORY HERE. MANN -- MONTGOMERY COUNTY SHOWED INCREASES ABOUT FIVE AND HALF PERCENT , DOES THAT SOUND CORRECT? HARRIS COUNTY ABOUT 6.2% INCREASE IN APPRAISALS.

MONTGOMERY COUNTY IS A BIG TAX RATE. WE HAVE AVERAGE THOSE WEIGHTED AVERAGE BUT RIGHT NOW WE ARE LOOKING AT A PRELIMINARY APPRAISAL INCREASE OF 9%. WE DO NOT KNOW HOW MUCH OF THAT IS NEW PROPERTY. YOU CAN SEE THE TREND DOWN ON THE BOTTOM OF WHAT HAS BEEN DOING . IT IS GOING TO BE SMALL , MOST OF IT.

THE IMPORTANT THING IS TO REMEMBER IS THAT IT DOES NOT MATTER IF IT IS 9% OR 6% OR 5%. BY LAW, WE ARE CAPPED AT THE VOTER APPROVAL RATE INCREASE, WHICH IS 3.5%. IN TERMS OF ALL OF THIS, THE MOST THAT WE ARE GOING TO BE ABLE TO RECOGNIZE WHEN WE GO INTO OUR BUDGET MODEL IN TERMS OF APPLYING THE RATE TO THE VALUE IS 3.5%. THAT IS JUST IMPORTANT TO REMEMBER REGARDLESS OF WHAT YOU SEE HERE. WE HAVE BEEN HEARING THE COMMITTEE WHERE THEY HAVE GOTTEN HIT WITH SOME OF THESE WHAT IT MEANS FOR THEM IS AS YOU KNOW , THEY MAY NOT BE ABLE TO TAX YOU. THE APPRAISAL DISTRICT MAY NOT BE ABLE TO TAX YOU FOR THE FULL AMOUNT BUT THEY CARRIED OVER FROM YEAR TO YEAR. EVENTUALLY HE DOES CATCH UP TO YOU BUT THAT IS WHY INDIVIDUAL APPRAISALS FOR BUSINESSES AND RESIDENTIAL IS IMPORTANT FOR US AS THE TOWNSHIP, IT IS UP 3.5% LIMIT

THAT WE NEED TO REMEMBER. >> I HAVE A QUESTION THAT IS NOT ON THIS BUT IT GOES BACK. I ASKED YOU EARLIER AND I WANT TO GET MY ARMS AROUND THIS. IF WE ARE HAVING A RITZ-CARLTON BEING BUILT HERE AND THERE FINISHES WITH ALL THE SUB ZEROS AND STUFF THAT GOES INTO THAT, WE HAVE IT ON THE BOOKS OR IS THERE SOME WAY THAT ALL OF THAT IS BUT HERE IN THE WOODLANDS SO THE TOWNSHIP RECEIVES SALES TAXES ON ALL THOSE THINGS ARE BOUGHT FOR MANUFACTURING? OR A NEW SHOPPING CENTER FOR EXAMPLE. HOW IS THAT DONE AND HOW IS THAT REQUIREMENT? WHAT

DOES THAT LOOK LIKE? >> HOWARD HUGHES, FOR INSTANCE, WHAT THEY DO IN THEIR CONTRACTS, THERE SOMETHING THAT IS CALLED A SEPARATE CONTRACT. I AM DRAWING A BLANK ON WHAT THE OTHER TYPE OF CONTRACT IS. THE TYPE OF CONTRACT THEY HAVE, IT DOES NOT MATTER IF THE MATERIALS ARE BOUGHT LOCALLY.

WHAT MATTERS IS THAT THE PROJECT IS HERE LOCALLY. ALL OF THOSE SALES TAX DOLLARS THAT APPLY TO THE DIFFERENT MATERIALS, FURNITURE, FIXTURE, CONSTRUCTION AND ALL OF THAT.

IN OTHER TYPES OF CONTRACTS, IT WOULD DEPEND ON WHERE THE

[00:50:05]

TO THE TOWNSHIP. >> AS WE LOOK AT SOME OF THE THINGS ON THE HORIZON, I GUESS WE WILL INCORPORATE SOME OF

THAT. >> THOSE WILL BE FACTORED INTO

GROWTH PROJECTIONS. >> SORRY TO DIGRESS.

>> JUST AS A REMINDER FOR 2024 THAT WHEN WE LOOK AT ALL OF OUR -- THE DIFFERENT TAX ENTITIES, THIS IS WITHIN MONTGOMERY COUNTY, IT IS IMPORTANT TO REMEMBER WHEN RESIDENTS WHEN THEY GET THEIR TAX BILL FOR MONTGOMERY COUNTY FOR THIS YEAR ON A 500,000 HUNDRED HOME, THE TOTAL WAS $7451. A LOT OF TIMES BECAUSE PEOPLE, THIS IS WHAT IS CLOSEST TO THEM, THE TOWNSHIP AND WHERE THEY GO. VAPING, THE TOWNSHIP ASSESS $7451. WE SPENT A LOT OF TIME IN THIS OFFICE GOING THROUGH THIS. WE HAVE THIS OUT ON THE WEBSITE AND WE BREAK IT DOWN. WE HAVE AN INFORMATIONAL VIDEO FOR THIS UPCOMING BUDGET PROCESS THAT EXPLAINS THIS. BASED ON OUR RATE OF $.14, THE COST THAT YOU PAID WAS $831 TO THE TOWNSHIP REPRESENTING 11%. IT IS IMPORTANT FOR ALL OF YOU TO REMEMBER AS WELL WHEN YOU START GETTING QUESTIONS AND YOU CAN ALWAYS REFER THEM TO US.

>> I HAVE HAD COMMENTS FROM PEOPLE WHO LIVE -- I KNOW IT IS JUST A SMALL PERCENTAGE, WHOSE CHILDREN GO TO NOT CONNOR OIC BUT MAGNOLIA IC AS TO REMEMBER THEM AS WE ARE CALCULATING IT

ALSO. >> WE DO. WE CAN HAVE THOSE ON

THE WEBSITE. >> ISN'T GOING THROUGH ALL THE

PIE CHARTS. >> A LOT OF MOVING PARTS.

>> THERE ARE. WE DO HAVE THIS FOR HARRIS COUNTY. IT IS THE SAME THING WITH HARRIS COUNTY IN THE $500,000 WILL PAY $9000 IN TAXES. THE TOWNSHIP PORTION IS $831 AND 8%.

>> HERE IS A BOOK AT SINCE THE INCEPTION OF THE TOWNSHIP IN 2010, BUT THE TAX RATE HAS DONE OVER THAT PERIOD OF TIME. THE COMPOSITE RATE FOR THE HOMEOWNERS ASSOCIATIONS OR COMMERCIAL AND HOMEOWNERS IN 2009 WAS $.42. THAT EMILY DROPPED TO 32.8 CENTS IN 2010. THAT IS BECAUSE WE WERE ABLE TO TAKE ADVANTAGE OF SALES TAX REVENUE FOR THE FIRST TIME. YOU CAN SEE HERE OVER A PERIOD OF TIME HOW THE RATE HAS DECREASED AND WE WILL GO INTO THE REASONS FOR THAT HERE IN JUST A MINUTE.

IT IS ALSO IMPORTANT TO COMPARE THOSE TAX RATES. THE ADOPTED TAX RATE WHICH IS SHOWN IN BLUE WITH THE KNOWN NEW REVENUE RATE IT IS THE RATE WHEN IT IS APPLIED TO THE SAME HOMES THAT WERE EXISTING IN TWO YEARS FROM THE EASIEST WAY TO EXPLAIN IT, THE 9% NUMBER THAT WE JUST SAW, THE TAX RATE WOULD BE ADJUSTED SO THE TOWNSHIP WOULD NOT BE RECEIVING ANY REVENUE BASED ON THE NEW VALUE. THAT IS WHAT THE NO NEW REVENUE RATE MEANS.

YOU'RE NOT BRING IN ANY REVENUE EXCEPT FOR THE NEW PROPERTIES THAT WERE ADDED. ANYTHING THAT HAS TO DO WITH APPRAISALS, THE NO NEW REVENUE RATE FACTORS THAT OUT. YOU CAN SEE THAT WE WERE ABLE FOR MOST OF THESE YEARS -- THE BOARD WAS ABLE TO ADOPT A RATE THAT WAS EITHER AT OR LESS THAN THE NO NEW REVENUE RATE. THE AREAS WHERE YOU SEE WHERE IT WASN'T WAS IN 2017 THYME. AND IF YOU THINK BACK ON THAT THERE WAS A LOT OF NATIONAL AND REGIONAL ECONOMIC ISSUES WITH OIL AND GAS DURING THAT TIME. THAT IS WHY THE BOARD AT THAT TIME CHOSE TO KEEP THE RATE ABOVE THE NO NEW REVENUE RATE. AND ALSO COMING OUT OF COVID, ALL THE INFLATION THAT WAS GOING ON. A LOT OF THOSE ISSUES WAS ANOTHER TIME WHEN THE BOARD KEPT THE RATE THE SAME AS OPPOSED TO LOWERING THE RATE.

YOU CAN SEE WERE 2022 TO 2024 THERE HAS BEEN A BIG DROP IN THE PROPERTY TAX RATE DURING THAT PERIOD OF TIME. BECAUSE OF THAT, WHAT WE JUST TALKED ABOUT AND HAVING BEEN NO NEW REVENUE RATE. I'M SORRY I DID NOT GET TO THESE NUMBERS BUT I WILL BY TIME WE GET TO BUDGET. THE PROPERTY TAX REVENUE HAS REMAINED RELATIVELY FLAT. IN 2017 WE COLLECTED $45.1 MILLION. AND THAT HERE WE ARE SEVEN YEARS LATER COLLECTING

[00:55:05]

IT PRIMARILY HAVE TO DO WITH RAPID GROWTH IN THE COMMUNITY.

IF YOU THINK BACK TO THIS TIME, WE HAVE STILL HAD A LOT OF GROWTH GOING ON IN TOWN CENTER. AND IN HUGHES LANDING OUT IN CREEKSIDE PARK. ALL OF THOSE CONTRIBUTED. COMING OUT OF COVID , WE HAVE A LOT OF INFLATIONARY CRISIS. WE GOT TO COLLECT SALES TAX ON THE HIGHER PRICES. ANOTHER BIG THING THAT IS IN HERE IS REESE GOT TO START COLLECTING SALES TAX ON ONLINE SALES. BEFORE, IT WAS ONLY POINT OF SALE AND THEN WE GOT TO START COLLECTING SALES TAX ON THAT BECAUSE OF THE SUPREME COURT DECISION BACK IN 2017 OR 2018. ALL OF THOSE HAVE CONTRIBUTED TO THIS TREND LINE THAT YOU SEE HERE. ALL OF THOSE ARE THE REASONS WE HAVE BEEN ABLE TO KEEP ROPERTY TAX FLAT.

IF THAT TREND LINE CONTINUES, WHICH IS SHOWN IN THE BLACK LINE THROUGH OUR FIVE-YEAR PLAN, AND I IMAGINE THE BOARD WILL HAVE THE OPPORTUNITY TO CONTINUE TO DO THE SAME THING.

AS WE TALKED ABOUT, THAT IS NOT WHAT WE ARE SEEING RIGHT NOW.

RIGHT NOW WE ARE SEEING A FLATTENING OF THE SALES TAX GROWTH. IN FACT, WE HAVE BEEN PROJECTING THE GROWTH FLATTENING , NOT BEING TOTALLY FLAT BUT NOT INCREASING AT THIS LEVEL. STILL INCREASING BUT NOT AT THIS LEVEL. THAT IS ACTUALLY WHAT IS REFLECTED IN OUR FIVE-YEAR PLANS. TWO DIRECTOR BAILY'S BEAD , IN ORDER TO KEEP THE TREND LINE GOING, YOU HAVE TO BRING IN ECONOMIC DEVELOPMENT OPPORTUNITIES AND RELOCATION. THOSE TYPES OF THINGS TO KEEP THAT DIRECTION GOING. THAT IS DIFFICULT TO DO OVER A LONG SUSTAINED PERIOD OF TIME. YOU HAVE POCKETS WHEN YOU CAN DO IT. IT IS SOMETHING WE ARE GOING TO HAVE TO CONSIDER. IN ORDER TO FUND SERVICES , WE CANNOT AT SOME POINT WE WILL HAVE TO RELY ON SOME TYPE OF REVENUE OTHER THAN SALES TAX. THAT IS THE POINT THAT I WANTED TO MAKE. THAT IS REALLY HAPPENING REGIONALLY SOME OF OUR PLACES NORTH OF US ARE REALLY STRUGGLING WITH THAT.

YOU MAKE THAT ISSUE TOO. YOU ANY QUESTIONS BEFORE WE GET INTO WHAT YOU WANT? YOU ARE PROBABLY TIRED OF HEARING ME

TALK. >> WITH ALL THAT, THE FIRST THING I WANT TO TALK ABOUT OUR EXEMPTIONS. WE DO HAVE A JUNE 30TH DEADLINE. WHICH MEANS IF THE BOARD IS INTERESTED IN CONSIDERING EXEMPTIONS, I WOULD NEED TO -- THE STAFF AND I WOULD NEED TO BRING THOSE BACK AT YOUR JUNE MEETINGS. AGAIN, WANT TO TALK ABOUT HOW WE BALANCE ALL OF THESE BUDGET PRIORITIES. WE HAVE TALKED ABOUT OUR SALES TAX AND OTHER HOTEL REVENUES. WE HAVE TALKED ABOUT OUR SERVICES AND AMENITIES THAT WE PROVIDE. WE TALK ABOUT RESERVES AND DEBT.

THE BALANCING THING IN ALL OF THIS IS OUR PROPERTY TAX BUT ONCE WE CAN NAIL THESE DOWNS OR MAKE ASSUMPTIONS ABOUT ALL OF THESE OTHERS BUT IN THE END, IT IS THE PROPERTY TAX RATE THAT IS THE FINAL DECISION THAT THE BOARD MAKES IN ORDER TO MAKE SURE WE HAVE A BALANCED BUDGET AND CONFRONT ALL OF THESE THINGS. LOOKING AT THAT, WE HAVE DIFFERENT COMPONENTS OF PROPERTY TAX REVENUE. IT IS MADE UP OF TAXABLE PROPERTY BUT AND THEN IS APPLIED TO THE VALUE TO DETERMINE WHAT THE REVENUE IS. THE EXEMPTIONS, OF COURSE, FALL WITHIN -- THAT IS WHAT IMPACTSOUR PROPERTY TAX VALUE. EXEMPTIONS, JUST AS A REMINDER, THEY CAN BE RESCINDED. TARGETED GROUPS, FOR INSTANCE A RESIDENTIAL HOMESTEAD, AGE 65 AND OVER.

THOSE ARE GROUPS THAT BENEFIT FROM IT COMPARED TO A TAX RATE REDUCTION, WHICH BENEFITS ALL PROPERTY OWNERS. WE CURRENTLY

[01:00:06]

AND THAT DEADLINE IS SEPTEMBER 15TH.

>> AGE 65 AND OVER, OUR EXEMPTION BUT YOU CAN SEE AT THE TOP WHAT WE HAVE DONE OVER THE YEARS IN TERMS OF THAT EXEMPTION AMOUNT AND HOW IT HAS INCREASED INCLUDING THE FACT THAT IT HAS DOUBLED IN THE PAST TWO YEARS. IT HAS RESULTED IN ABOUT $5.9 MILLION OF PROPERTY TAX SAVINGS. AND FOR 2024 THAT EXEMPTION WAS 808,000 SAVINGS FOR TAXPAYERS. IF THE BOARD WANTED TO CONSIDER ANY OTHER TYPE OF INCREASE , THE THING TERMER IS EACH $10,000 OF EXEMPTION WOULD REDUCE PROPERTY TAX REVENUE BY APPROXIMATELY 164,000 TO 50 . SO THE CHART YOU SEE DONE AT THE BOTTOM IS BASED ON CURRENT NUMBERS , A CURRENT $50,000 EXEMPTION REDUCES PROPERTY TAX REVENUE BY 808. IF THE BOARD WANTED TO CONSIDER A 60,000 EXEMPTION THAT WOULD LOWER OUR REVENUES ANOTHER 164,000 OR TOTAL OF 972 AND SO ON THROUGH THE CHART. THAT IS JUST A CONSIDERATION BUT YOU DO NOT HAVE TO MAKE A DECISION NOW. JUST WANTED TO INTRODUCE THIS CONCEPT TO YOU SO YOU WOULD KNOW WHAT TO EXPECT. IN TERMS OF OUR HOMESTEAD EXEMPTION, IT IS CURRENTLY 3% . AT THAT 3%, WE GENERATE -- WITH THE 3% , WE GENERATE 45 POINT -- EACH 1% OF EXEMPTION THAT THE BOARD -- AT THE BOARD DESIRED TO INCREASE THAT EXEMPTION WOULD REDUCE REVENUES APPROXIMATELY 260,000 DOLLARS MORE BUT IF THEY WANT TO GO FOR 3% TO 5% HOMESTEAD, IT WOULD LOWER PROPERTY TAX REVENUE BY $534,000. I ALSO ONE TO BREAK THIS OUT WHAT THAT WOULD MEAN 28 PROPERTY OWNER OF A $500,000 HOME. THAT WOULD GIVE A 3% TO A 5% EXEMPTION WOULD RESULT IN $17.14 PER YEAR. THAT IS THE IMPORTANT THING TO REMEMBER. YOU BALANCE -- WHAT DOES IT MEAN FOR A TAXPAYER OF A $500,000 HOME TO SAVE $17 A YEAR ? NOT MINIMIZING THAT. IT IS ALWAYS IMPORTANT TO LOOK AT THOSE THINGS. WE DO HAVE TO OFFSET THAT WITH THE ENVIRONMENT AND SEE IF THAT IS -- WHAT THAT LOOKS LIKE COMPARED TO $.5 MILLION IN TOWNSHIP REVENUE WHICH IS USED IN SERVICES. ANY QUESTIONS ON EXEMPTIONS? OKAY.

FINALLY, THIS IS WHERE -- WE NEED TO HEAR FROM YOU IN TERMS OF BUDGET INITIATIVES. WE HAVE OUR BUDGET WORKSHOPS THAT WILL START ON AUGUST 19TH THROUGH IN THREE DAYS. THAT WOULD BE THE 19TH, 20 AND 21ST. THOSE ARE ALREADY ON YOUR CALENDARS.

WHAT THE STAFF WILL BRING FORWARD AND WHAT THE BUDGET TASK FORCE THAT THE BOARD AUTHORIZE WILL LOOK AT IS THE BASE BUDGET . THE BASE BUDGET JUST MAINTAINS OUR EXISTING SERVICE LEVELS. IT DOES ACCOMMODATE OUR COMMUNITY GROWTH AND MEETS OUR LEGAL AND CONTRACTUAL OBLIGATIONS. IT IS WHAT WE CALL OUR BASE BUDGET. THE ON THAT , THE BOARD LOOKS AT A VARIETY OF BUDGET INITIATIVES OR ITEMS THAT ARE NOT INCLUDED IN THE BASE BUDGET. THIS MIGHT INCLUDE VARIOUS TAX RATE SCENARIOS, ENHANCER NUMA SERVICES AND AMENITIES AND THOSE TYPES OF THINGS. THIS IS MY LAST SLIDE BUT THIS IS WHAT I WANT TO SHOW YOU. THESE ARE THINGS THAT WE A STAFF ARE ALREADY AWARE OF THAT HAVE EITHER COME FROM A BOARD MEMBER OR STAFF ANALYSIS THAT WE KNOW. EXCUSE ME. THEY ARE LIKELY TO BE BUDGET INITIATIVES. THINGS THAT WE WOULD NEED TO BE LOOKING AT AND CONSIDERING IN LIGHT OF EVERYTHING THAT WE JUST TALKED ABOUT. IN LIGHT OF WHAT WE DO THE PROPERTY TAX REVENUE. WHETHER WE OFFER EXEMPTIONS.

WHAT WE DO WITH OUR ASSUMPTIONS ON SALES TAX. ALL OF THOSE THINGS FACTOR INTO WHICH OF THESE THINGS WE CONSIDER AND

[01:05:02]

OF THINGS ARE COMING ALREADY. >> REQUESTS HAVE COME FROM THE

SHERIFF'S OFFICE? >> THE SHERIFF HAS TOLD US THEY ARE COMING. WE HAVE NOT RECEIVED IT YET.

>> WHEN IS THE EARLIEST TIME IN WHICH WE CAN GET COLOR ON THAT

TO LOOK AT IT? >> WHEN WE RECEIVE IT AND GO

THROUGH THE BUDGET. >> YOU JUST KNOW IT IS COMING?

>> YES. >> THESE BIG ONES -- WE ARE AS YOU COME UP YOUR CHEAP BUT WE KNOW WHAT YOU ARE UP TO.

>> SOME OF THOSE OUTSOURCED ONES , THE SOONER THE BETTER THAT WE CAN START PLANNING. AND GET OUR ARMS AROUND WHAT THEIR

REQUESTS ARE. >> WE STILL HAVE QUESTIONS. WE ARE TRYING TO CLARIFY. I KNOW THE BUDGET TASK FORCE HAS ALSO BEEN -- THAT IS PART OF WHAT THEY WILL DO AS WELL.

>> I STILL WANT TO RIDE IN THE SUB WE BOUGHT THEM LAST YEAR.

>> WE KNOW THAT THE DEVELOPMENT OF GOSLING SPORTS FIELD , THAT IS OUR OLD NAME FOR IT. GOSLING PARK, WHATEVER FORM THAT TAKE.

THAT IS NOT FUNDED BUT I THINK WE TALKED ABOUT THAT WHEN WE BOUGHT BACK THE FIRST PHASE ONE STUDY LAST TIME. ANYTHING WHERE WE WANT TO MAKE MOVEMENT ON THAT, I THINK WE ARE REQUIRED TO DO SOMETHING WITH IN TWO YEARS. WE WILL HAVE TO SET ASIDE SOMETHING . EVEN IF IT IS JUST A TRAIL HEAD IN A PARKING LOT. WE ARE GOING TO NEED TO DO SOMETHING THERE. WE WOULD HOPE TO START DEVELOPING PLANS AND FINDING A BUSINESS PLAN ASSOCIATED WITH THAT. WE HAVE HEARD ABOUT TRANSPORTATION INITIATIVES DIRECTOR NELSON HAD A GOOD EXPERIENCE WITH SOMETHING WHEN SHE WAS TRAVELING . SHE HAS ASKED US TO LOOK INTO THAT. WE HAVE HEARD AND HEARD EARLIER TODAY ABOUT ENHANCE COMMUNITY MAINTENANCE. THE STANDARDS THAT WE ARE OPERATING THE COMMUNITY MAINTENANCE STANDARDS ARE STANDARDS THAT HAVE ADMITTEDLY BEEN IN EFFECT FOR A WHILE. WE ARE MEETING THOSE STANDARDS BUT AS THE COMMUNITY AGES OR IF THERE IS A DESIRE FOR ENHANCED AMENITIES, THAT IS WHAT WE NEED TO LOOK AT. THAT IS WHAT CHRIS NUNES AND JOHN MCALLEN AND HIS TEAM ARE LOOKING AT RIGHT NOW. WE DO PLAN TO BRING THAT BACK TO THE BOARDS AND BUDGET WORKSHOPS. SOME WILL HAVE ACHES AND LIVING COSTS. THIS IS A LARGE COMMUNITY. WE ARTY HAVE A VERY ENHANCED LEVEL OF AMENITIES AND MAINTENANCE THAT WE PROVIDE COMPARED TO MOST COMMUNITIES. WE WANT TO TAKE THAT UP ANOTHER NOTCH, THERE IS A COST. WE WILL BRING THAT TO YOU SO THAT YOU CAN MAKE THAT DECISION. THAT IS ON THE

HORIZON. >> CAN I ASK A QUESTION? MAYBE I NEED , YOU KNOW, PRIVATE TUTORIAL OR SOMETHING. REALLY GETTING MY ARMS ON WHAT WE HAVE ON OUR PARKS NEEDS ASSESSMENT AND WHAT IS ON THE HORIZON. AND WHAT WE ARE PLANNING FOR. AND THEN WHAT IS NOT -- JUST A NEEDS ASSESSMENT. I UNDERSTAND THE REPLACEMENT OF PARKS EQUIPMENT BECAUSE IT IS OLD AND THINGS LIKE THAT. I'M TALKING ABOUT NEW PARKS. THE EXPANSION OF THE SPORTS FIELD BUT WHERE DOES THAT LAY IN THE WHOLE PROJECT? AS WE ADD , MY CONCERN IS WE HAVE TO HAVE PEOPLE TO TAKE CARE. IF WE HAD A SPLASH PARK , THAT IS ANOTHER CAUSE.

THERE IS A PERSON AN HOURLY RATE THAT GOES TO THE BATTING CAGE. DURING THIS PROCESS, I WOULD LIKE TO GET MY ARMS AROUND THAT. IT IS BEAUTIFUL. WHAT IS THE COST OF THAT MAINTENANCE? ARE WE TAKING AWAY FROM OTHER PARTS OF OUR COMMUNITY TO TAKE CARE OF THAT? WE HAVE GOT TO LOOK AT THE PEOPLE FACTOR THAT GOES INTO THIS. WHETHER IT IS A CONTRACTOR SOMEONE OR HIRING SOMEONE AND THEIR RATES AND

[01:10:02]

HEALTHCARE AND BENEFITS COSTS? >> WE WILL DO THAT. WHEN STAFF REQUEST CAPITAL PROJECTS AND WHEN IT IS PRESENTED TO YOU, THERE IS A SECTION WITHIN THE NARRATIVE THEY HAVE TO PROVIDE.

THE ANALYSIS THAT PROVIDES THE ONGOING COSTS ASSOCIATED WITH ADDING THE ASSET. THAT IS SOMETHING WE LOOK AT AND SOMETHING WE WILL DO A BETTER JOB OF COMMUNICATING SO IT IS

UNDERSTOOD. >> NOT ONLY ENHANCE SERVICE BUT I WILL EVEN SAY RIGHT NOW IN VISITING WITH THE PARKS TEAM.

EVEN WITH EXISTING -- EVEN THOUGH WE ARE MEETING THE EXISTING STANDARDS, WE ARE STRUGGLING SOMETIMES WITH PARKS AND REC. I WILL TAKE FOR EXAMPLE MANNERS. IT BLOWS ME AWAY THE AMOUNT OF TIME THAT IT TAKES TO HANG UP AND TAKE DOWN BANNERS. JOHN MCALLEN, TO HIS CREDIT, AS FOR A CREW LAST YEAR TO HANG BANNERS KNOWING THIS. WE HAD SO MANY OTHER PRIORITIES IN TERMS OF THE LARGE INCREASE WITH THE ASK RAMAN ENFORCEMENT , WHICH IS ALWAYS A PRIORITY FOR THIS BOARD. A GREAT DECISION THAT WAS MADE. WE CANNOT DO EVERYTHING. ONE OF THE THINGS THAT WE DID NOT MOVE FORWARD WITH WAS THE BANNER.

WHEN EVER WE HAVE TO PUT UP BANNERS, IT TAKES AWAY FROM THE LANDSCAPING TEAM, TO YOUR POINT. WE CANNOT KEEP UP WITH EVERYTHING WITHOUT ADDITIONAL STAFF. THAT IS ALL THE ANALYSIS WE WILL BRING TO YOU THIS TIME. PARKS AND RECREATION, IF YOU LOOK AT THEIR GROWTH AND STAFF COMPARED TO PUBLIC SAFETY AND WHAT WE HAVE DONE WITH THE TAX RATE AND EXEMPTIONS AND OTHER THINGS, THEY HAVE HAD VERY LITTLE GROWTH , NOTHING DURING COVID AND NOT COMING OUT OF THAT. THEY ARE ASKED TO DO MORE, AND MORE, AND MORE. THAT IS WHERE WE NEED TO RIGHT THE SHIP. THAT WILL BE A BIG PRIORITY FROM STAFF AND ME

COMING FORWARD. >> ANOTHER THING I WOULD LIKE TO SEE IS WHEN WE SAY SPORTS FIELD, HOW MANY SOCCER FIELDS ARE THERE? I'M HEARING FROM TENNIS PLAYERS NOW. JUST SO WE CAN SEE IS THERE AN EVEN PLAYING FIELD ORDER SOCCER GETTING SO MUCH OF THE ATTENTION. YOU ARE STARTING TO SEE THE COMPETING SPORTS PEOPLE OUT THERE SAYING, WHY IS SOCCER GETTING ALL OF IT? WHY IS BASED ON NOT GETTING MORE OF IT? MAYBE JUST A LISTING OF WHAT WE HAVE GOT. SO WE CAN SHOW THOSE

THAT ARE QUESTIONING THAT. >> WE WILL BE GLAD TO DO THAT.

THAT IS A BATTLE. I CAN TELL YOU THERE IS NOT ENOUGH TENNIS COURTS FOR EVERYONE THAT WANTS THEM. NEW -- WE DO NOT HAVE

NEAR ENOUGH. >> THAT IS THE POINT RIGHT

THERE. >> PARKS AND RECREATION FROM OUR MEETING THE OTHER NIGHT IS PLANNING FOR THE EXPECTED GROWTH TO THE COMMUNITY IN PLANNING THESE DIFFERENT TENNIS COURTS AND SOCCER FIELDS. IT WOULD BE NICE TO SEE THAT INCORPORATED IN THE NUMBERS THAT EXIST TODAY. , YOU KNOW,

WE WILL DO THAT FOR SURE. >> WHEN YOU DO THAT, CAN YOU BREAK OUT -- DR. NOONS, THIS IS TO YOU. CAN YOU SEE THE AMOUNT OF RECREATIONAL FEES THAT WILL BE GENERATED. THAT WILL BE RELEVANT ESPECIALLY IF IT IS A VERY BIG COMPLEX, LIKE THE GOSLING -- SOUTH GOSLING COMPLEX COULD BE . ALTHOUGH THAT IS A CONSIDERATION CONSIDERING FLOOD ZONE. WE MAY NOT HAVE AS MUCH USABLE LAND AS WE HOPE TO HAVE. I THINK THE GENERATION OF ANY KIND OF THESE WOULD HELP BALANCE SOME OF THE CONCERNS THAT WE BOARD MEMBERS HAVE IN TERMS OF INCREASE EXPENDITURES TOO. THE OTHER PART OF THAT THAT HAS BEEN BROUGHT TO US, IS EVEN IF A GROUP WANTS MORE TENNIS OR PICKLE BALL, ALL WEATHER TURF FOR SOCCER OR WHATEVER SPORT IT MIGHT BE, THERE ARE ALSO RESIDENTS WHO LIVE AROUND THOSE COMMUNITIES AROUND THE PARKS THAT DO NOT WANT THAT. THAT IS A REALLY IMPORTANT FACTOR THEY ARE WORRIED ABOUT THE CHANGE IN THEIR LIFESTYLE ABOUT HEALTH NEEDS AND THE NOISE POLLUTION AND WATER POLLUTION, YOU NAME IT. THEY ARE WORRIED ABOUT THE DOWNSIDE TO ADDING MORE RECREATIONAL FACILITIES.

>> THAT IS ANOTHER THING WE HAVE TO BALANCE. I LIKE THE OPTION OF THE SOUTH GOSLING FIELD. NO ONE LIVES AROUND THERE, CORRECT? THAT IS ONE OF THE VERY BEST THINGS ABOUT IT.

I DON'T ANTICIPATE PEOPLE COMPLAINING BECAUSE OF BIKE

POLLUTION OR NOISE POLLUTION. >> THAT COULD BE OPPORTUNITY DEPENDING ON HOW THINGS GET SHAKEN OUT WHERE WE ARE ABLE TO

[01:15:02]

TOWNSHIPS. >> YOU ARE RIGHT. ALL OF THOSE NEEDS TO BE CONSIDERED AS WE MOVE FORWARD.

>> THE LAST , SIMILAR TO WHAT DIRECTOR GIBBS AND DIRECTOR WATSON SAID THAT WERE IN MY NOTES, MY CONCERN IS AS WE CONTINUE TO ADD , THAT WE HAVE CHALLENGES IN TAKING CARE OF WHAT WE HAVE. AND BEFORE WE AT ADDITIONAL, IN MY OPINION, WE NEED TO ENSURE THAT WE CAN TAKE CARE OF THE FACILITIES THAT WE

HAVE . >> IT COST MORE TO DO THAT TOO.

>> THAT IS EVERYTHING WE ARE TALKING ABOUT. IT IS COMPLICATED. THERE IS A LOT TO IT. IT IS A PRIORITY. WE KNOW

WE NEED TO DO THAT. >> WE NEED TO MEET.

>> EVERYTHING CALLS FOR IT. AND HOW TO ALLOCATE LIMITED RESOURCES. THAT IS WHAT A BUDGET IS, LITERALLY.

>> WHEN YOU FIGURE THAT OUT, I NEED YOU TO GO BY MY HOUSE.

>> EXACTLY. >> DON'T WORRY, MY WIFE IS NOT

WATCHING. >> OKAY. IN ADDITION TO THAT , RENOVATIONS OF WATER WAIST FOUNTAIN. THAT FOUNTAIN HAS BEEN A MAINTENANCE CHALLENGE FOR A WHILE AS MANY OF YOU KNOW. WE ARE CURRENTLY WORKING WITH A CONSULTANT TO BRING FORWARD A PLAN BASED ON STAFF ANALYSIS AND WHAT WE ARE HEARING FROM CONSULTANTS IS IT WILL VERY LIKELY BE A MAJOR RENOVATION COST , LIKE IN 1 MILLION TO MULTIPLE MILLIONS OF DOLLARS DEPENDING ON WHAT IT IS. THAT WILL BE SOMETHING THAT IS ALSO COMING FORWARD AS I THINK I HAVE TALKED A FEW HUGE ABOUT. WE WILL HAVE TO DECIDE IF THAT IS A BEAUTIFUL FOUNTAIN BUT IT DOES NOT HAVE SOME OF THE PROGRAMMING AND FUN STUFF TO IT OR IF WE WANT TO INVEST IN IT AND GET IT TO WHERE IT NEEDS TO BE. PART OF OUR PROBLEM IS WE ARE DEALING CLOSE TO SOLE PROPRIETOR ON THE PROGRAMMING. JUST BECAUSE OF HOW IT WAS DONE. THERE IS NOT A LOT OF PEOPLE WE CAN GO TO WHEN IT IS FIXED. IT GETS BROKEN DOWN FOR A LONG TIME. IT TAKES A LOT OF OUR STAFF TIME. I KNOW YOU GET A LOT OF COMPLAINTS ABOUT IT. BUT HAS THE POTENTIAL FOR BEING HUGELY EXPENSIVE AND WE WILL WAIT AND SEE. RENOVATIONS TO FIRE STATIONS THREE AND FOUR. LET ME START OFF WITH WHAT WE HAVE ALREADY FUNDED, THE EMERGENCY TRAINING CENTER. YOU HAVE AN ITEM COMING TO YOU TONIGHT AT YOUR REGULAR BOARD MEETING TO HIRE THE CONSTRUCTION ON THAT. WE HAVE $15 MILLION RESERVED FOR THE EMERGENCY TRAINING CENTER AT FIRE STATION FIVE. ASKED TONIGHT WILL BE $3.9 MILLION. WE WILL DISCUSS IT NOW BUT IT LEAVES $11 MILLION FOR FIRE STATION FIVE. THAT IS GOING TO BE CLOSE. WE ARE WORKING ON THE NUMBERS . THE CHIEF AND HIS TEAM ON THAT DOING EVERYTHING WE CAN TO STAY WITHIN THE BUDGET. THE COST OF CONSTRUCTION AND ALL OF THAT JUST CONTINUES TO RISE. WE WILL SEE IF WE CAN STAY WITHIN THE $11 MILLION OR IF WE HAVE TO USE THAT ON THE COLLOCATED MONEY TO GET THE PROJECT WHERE WE NEED TO BE. WE ALSO NEED RENOVATIONS. I THINK MOST OF YOU HAVE BEEN ON A FIRE STATION TOUR. I THINK MANY OF YOU HAVE SHOWED THREE AND FOUR BECAUSE THEY HAVE SOME CHALLENGES. THAT IS NOT CURRENTLY FUNDED RIGHT NOW. THAT IS SOMETHING WE WILL LOOK AT AND COME BACK WITH AN ESTIMATE ON THERE. IT IS TO THE EXTENT THAT THE BOARD CHOOSES TO DO THAT. WE TALKED ABOUT THE PARKS CAMPUS FACILITY EXPANSION AND RENOVATIONS AND HOW WE HAVE 1,000,007 $50. I CAN ALREADY TELL YOU THAT IS NOT GOING TO BE ENOUGH. WE ARE GOING TO COME BACK TO THE BOARD WITH WHAT WE HAVE ARCHITECT LOOKING AT THAT

ON RIGHT NOW BUT >> WE ARE NOT TEARING IT DOWN.

>> WE ALWAYS, EACH YEAR, GET REQUEST FROM VILLAGE

[01:20:02]

WE DO HAVE REQUEST FOR NEW STAFF FROM THE FIRE DEPARTMENT AND OUR GENERAL EMPLOYEES. RIGHT NOW IT IS FAIRLY SIGNIFICANT STAFF INCREASE. OUR STAFF DOES NOT ASK FOR PHYSICIANS. THIS IS A CONSTANT CYCLE WE ARE IN. WE KNOW WE CANNOT THAN 30 POSITIONS. WE ARE GOING TO GET THAT DOWN.

EACH TIME , IT JUST PUTS US A LITTLE FURTHER BEHIND. AGAIN, OUR STAFF IS GREAT. THEY DON'T ASK FOR POSITIONS THEY DON'T NEED. IT IS THAT BALANCE, AGAIN WHAT WE CAN DO WITH THE FUNDS THAT WE HAVE. THAT $6 MILLION CAN BE USED UP . SOME OF IT CAN BE USED UP ON ONE PROJECT. STAFF IS NOT PROPOSING ANYTHING. WE WILL GIVE YOU ALL THE INFORMATION YOU NEED TO START MAKING THOSE DECISIONS. WITH THAT, I WOULD LIKE TO KNOW WITH OTHER THAN THIS LIST, WHICH WE ARE RESEARCHING RIGHT NOW OR ANALYZING, IS THERE ANYTHING ELSE YOU WOULD LIKE US TO LOOK AT? WE WANT TO BE SURE THAT WE HAVE THAT SO WE CAN BE PREPARED. IF YOU DO NOT HAVE ANYTHING ON THE TOP OF YOUR MIND RIGHT NOW , IF OVER THE NEXT SEVERAL WEEKS YOU CAN THINK ABOUT THAT. WE WILL SENT OUT AN EMAIL TO YOU TO REMIND YOU TO LET THOSE KNOW WHAT THOSE WOULD BE.

>> OVER THE LAST YEAR AND A HALF WE HAVE GOT A LOT OF RESIDENTS WHO ARE LOOKING FOR SOME KIND OF HELP WITH SOME KIND OF BUFFER. WE TRIED TO DO SOME REFORESTATION. WHERE IS THE MONEY BEING TAKEN FROM RIGHT NOW? HOW DO WE EXPECT TO HELP OUT WITH THESE FOLKS IN THE FUTURE? I FEEL BAD THAT WE TEND TO -- A LOT. WE DO NOT CONTROL THE ROADS OR CERTAIN THINGS. WE ALL GET A LOT OF EMAILS. I SOMETIMES FEEL , NOT EMBARRASSED BUT I FEEL BAD THAT IS CONSTANTLY SAYING DIRECT YOURSELF TO COUNTY PRECINCT COMMISSIONER. GO HERE. WHEN THEY HAVE EXHAUSTED THE REMEDIES , THEY COME TO THAT

MICROPHONE . WHAT DO WE DO? >> WE CANNOT PLANT ON OTHER PEOPLE'S PROPERTY WITHOUT THEIR PERMISSION. THAT IS FOR SURE. CHRIS, DO UNTIE WHAT WE HAVE THOSE?

>> I AM CURIOUS. I KNOW FROM TIME TO TIME IT IS WE TRY TO DO

SOMETHING WHERE WE CAN. >> I ANCHORS WERE THAT COMES

FROM. >> THE ABILITY TO PLANT TREES WITH IN TOWNSHIP PROPERTY HAS ALWAYS RESTED IN THE BOARD AND STAFF. WE HAVE THIS MILLION DOLLAR BUDGET FOR REESE FOR STATION BUT HISTORICALLY WE HAVE TAKEN COMMENTS FROM RESIDENTS THAT SAY THIS HAS OPENED UP IN MY AREA. OR OTHER PLACES. WOODLANDS PARKWAY OVER THE YEARS. WE HAVE GONE IN WHERE WE CAN TO PLANT TREES. JUST BECAUSE IT IS RESERVED BEHIND THE HOUSE DOES NOT MEAN THAT WE CAN PLANT TREES. THERE IS A HEALTHY STAND . ADDING TREES WOULD NOT MAKE SENSE BECAUSE THEY WOULD NEVER GROW AND MATURE. IT IS JUST WAITING DOLLARS. I DO KNOW ON ANOTHER ELEMENT IS THE COUNTY ADMINISTRATION TEAM HAS REFINED SOME OF THEIR FENCING STANDARDS TO TRY TO FACILITATE SOME OF THESE CONCERNS . OVER THE LAST SIX MONTHS ESPECIALLY AS A RESULT OF THE RESEARCH FORCE CONCERNING AT BRANCH CROSSING TO TRY TO QUANTIFY THOSE STANDARDS THAT THEY CAN GO UP TO 7.52 8.5 FEET WITHOUT A VARIANCE. THERE ARE EXISTING DOLLARS. IN THE BUDGET FOR THE REFORESTATION. WHEN WE GO THROUGH LARGE TRACTS, LIKE KAYAK RIDGE , THE EXISTING BUDGET CANNOT HANDLE THAT. FIVE OR 10 TREES, 20 TREES, YEAH. THERE IS A CONCERN RIGHT NOW INAUDIBLE ] BUT PART OF THE CHALLENGES IS THE DRAINAGE BUT WE ARE STILL REVIEWING WHAT WE CAN AND CANNOT DO.

>> I AM THINKING IN TERMS OF PATTERN OF ISSUES THAT WE SEE.

IT IS WHAT DIRECTOR SEKULA-GIBBS MENTIONED A BIT AGO. WHETHER IT IS AN EXPANSION OF ROAD THAT WE CANNOT CONTROL BUT NOW WILL IT WILL GREAT PROBLEM FOR PEOPLE WHEN WE

[01:25:04]

MONEY COMING FROM? >> WHEN WE CAN DO SOMETHING WE TYPICALLY DO DO SOMETHING. WE CAN USED AS A TECHNIQUE TO HAVE THE IMPACT ON RECREATION FACILITIES. MY 18 YEARS HERE AND EVEN BEFORE THAT, THAT IS BUILT INTO SOME OF OUR CAPITAL BUDGETS. IF IT IS NOT IN THE CAPITAL BUDGET, WE PUT IT THROUGH THE REFORESTATION BUDGET, ET CETERA, ET CETERA.

>> I THINK IT IS IMPORTANT BECAUSE IT CAN CURE A LOT OF ILLS. ALL THE PROBLEMS SEEM TO END UP WITH A LOT OF THE SAME ISSUES FOR THE RESIDENTS. BE A PROBLEM THAT RELATE TO A PARK, A ROAD. EVERYONE WANTS NICE AND NEW STUFF BUT THAT COMES WITH SOME SIDE EFFECTS , JUST LIKE NO ONE LIKES TRAFFIC. IF WE START CHANGING THE TRAFFIC, THAT IS GOING TO BE MORE CARS AND MATTER. YOU IT IS CHANGE. WHERE I COULD NOT SEE IT OR NOW A TRUCK COMES BY , NOT A TRUCK COMES BY. IT IS A CHANGE. IT IS PART OF THE GROWTH OF THE COMMUNITY. AGAIN, GOING BACK TO THE REFORESTATION. WE DO MITIGATE OR READ TO COME BACK TO THE BOARD AND SAY THIS IS THE ON OUR BUDGET. ADDITIONAL

DOLLARS ARE NEEDED. >> IN THE PAST WEEK, WE DID TALK ABOUT THE HOMES THAT DO BACKUP TWO PRETTY BUSY ROADS. I DID NOT KNOW ABOUT THE FENCE VARIANCE, WHICH IS INTERESTING.

WE HAVE ALSO TALKED ABOUT POSSIBLY HOLDING SOME KIND OF EDUCATIONAL SEMINAR WITH HOW TO MINIMIZE THE NOISE BEHIND YOU.

I DON'T EVEN KNOW WHAT THERE IS SO I CANNOT SAY. I WOULD BE INTERESTED IN HEARING THAT. AT LEAST SOMETHING WE ARE DOING WHEN SOMEONE IS TALKING ABOUT A SITUATION BEHIND THEIR HOME. WE CAN VIDEOTAPE IT IF WE WANTED TO AND PUT IT ON.

>> TO THE EXTENT THAT YOU HAVE A TOOLBOX WITH SOME TOOLS IN IT AND I AM ALWAYS CONCERNED ABOUT PRECEDENT. WE HAVE TO BE MINDFUL OF WHAT WE ARE DEALING WITH. IN LOOKING EVERYTHING ON AN INDIVIDUAL BASIS JUST LIKE WE DID WITH THE PONDS AND WATER AND ALL OF THAT. BUT YOU NEED TO HAVE FUNDING FOR SOME OF THE TOOLS. I WANT TO MAKE SURE THAT IS THERE. THIS IS A BIG ISSUE

FOR OUR RESIDENTS. >> WE HAVE ALWAYS HAVE THE TOOLBOX FOR TREES. WE HAVE NOW ESTABLISHED THE FENCE STANDARDS , DIRECTOR NELSON'S, ABOUT THE EDUCATION. THANK YOU FOR BEING DESPERATE BRING THAT BACKUP. THAT WAS ON MY LIST SUMMER WE CAN LOOK AT THAT. OR IDENTIFY OTHER THINGS THAT COULD BE DONE. OF THE TOP OF MY HEAD, I DO NOT KNOW. THIS IS A CHALLENGE OF A GROWING AND DEVELOPING COMMUNITY. ONE POINT I WOULD ALWAYS WANT TO MAKE IS ALL OF THE ROADS IN THE WOODLANDS TOWNSHIP WERE PLATTED FOR THEIR MAX SIZE.

>> I WOULD ALSO LIKE TO LOOK -- CHRIS, I KNOW YOU'VE TALKED ABOUT THIS BEFORE. I WOULD LIKE TO REOPEN IT OUT. DISCUSSION ABOUT CONNOR WHY SD WITH ALL OF THEIR SPORTS FIELD ACROSS HIS COMMUNITY. THEY HAVE PLENTY OF PARKING ON SUNDAY AND SATURDAY MORNINGS OR WHAT HAVE YOU. HOW WE CAN BE GOOD STEWARDS OF TAXPAYER FUNDS AND DO CODE ALLOTMENT OF THOSE PRODUCT VERY PUTTING A FIELD ON A GRASS FIELD AT AN INTERMEDIATE SCHOOL. AND SHARING IN THAT FACILITY AND THERE IS A LOT OF CHURCHES THAT RENT HIGH SCHOOLS AND INTERMEDIATE SCHOOLS ALL AROUND ON SUNDAYS. IT SEEMS LIKE WE COULD DO SOMETHING IN A WAY OF A SPORTS FIELD AND AND I KNOW YOU HAVE OPEN THIS BAG OF WORMS BEFORE. I WANT TO HAVE TALKS BUT MAYBE WE GET A COMMITTEE FROM THIS BOARD TO WORK WITH YOU AND THE SCHOOL DISTRICT TO SAY, LET US BE GOOD STEWARDS OF TAX FUNDS AND WE CAN IMPROVE THE FACILITIES BUT WORK TOGETHER IN SHARING THE FACILITIES. SO WE DO NOT HAVE O TEAR DOWN TREES AND B MORE COURTS AND WHAT HAVE YOU. I THINK THERE IS A GOOD WAY TO FIGURE OUT -- IT HAS TO BE DONE ALL ACROSS THIS NATION. WE HAVE GOT A TON OF EXPERTISE AND FIELDS. HOW CAN WE WORK WITH THE SCHOOL DISTRICT TO BE GOOD STEWARDS OF THE TAX FUNDS?

>> THAT IS VERY COMMON FOR JOINT USE. WE HAVE MADE THOSE OVERTURES OVER THE LAST 10 YEARS. AS WELL AS WE WERE

[01:30:07]

THAT YOU JUST MENTIONED. >> WASN'T WELL-RECEIVED?

>> WE PITCH THAT -- >> IT WAS JUST KIND OF LEFT

HANGING. >> IT IS STILL UP FOR

DISCUSSION. >> I WOULD LIKE TO SAY I HAD AN EXPERIENCE WITH EXACTLY THESE ISSUES. I HAD SEVERAL PEOPLE AROUND THE LAKE PARK AREA WHEN THE PICKLE BALL COURTS WHEN AND THERE IS LONGTIME HOMEOWNERS WITH TREES AND WOODS AND ALL OF THAT. AND WORKING WITH PARKS AND REX AND WITH CHRIS, THEY DEVISED A PLAN THAT CAME UP WITH TREES THAT AT LEAST SOLVED A LOT OF THE PROBLEM. THE QUESTION WAS, IT WILL NOT BE LIKE IT WAS BEFORE. IT WILL TAKE LONGER FOR PATRICE TO GO UP. YOU NOT THE PICKLE BALL COURTS? AN EXAMPLE THAT I HAVE PERSONAL EXPERIENCE WITH, I THINK WE DID A GOOD JOB. ON ARBOR DAY, I DON'T HOW MANY TREES WE ENDED UP PLANTING BUT THERE WAS A WHOLE LOT. I THINK THAT WE HAVE MADE, IN THE PAST, SOME GREAT EFFORTS TO DO THAT. AS WE KNOW, WE GET CONFLICTED BETWEEN WE WANT MORE PICKLE BORO -- PICKLE BALL COURTS AND WE WILL MORE TREES PRETTY CANNOT WIN EVERY TIME.

>> NO ONE IS RESERVING TREES. THE MINUTE YOU NEED TO BUY ABOUT. IS THIS THING ON?

>> THANK YOU, DR. NUNES. ARE THERE ANY COMMENTS OR QUESTIONS

FOR OUR PRESIDENT AND CEO? >> NICE JOB.

>> THANK YOU. >> I ALWAYS FEEL LIKE THIS MEETING IS PREMATURE BUT THEN WE NEED MORE INFORMATION.

>> WHEN WILL YOU BE ABLE TO GUESSTIMATE OR TELL US THEN NEW REVENUE RATE YOU MIGHT NOT UNTIL AUGUST?

>> UNFORTUNATE, THAT IS THE LAST PIECE THAT COMES IN. WE DEVELOP A WHOLE BUDGET MAKING ASSUMPTIONS. WE PLUG IN VARIOUS SCENARIOS AND THEN WE FINALLY GET THE RATE, WE BRING YOU THE

SCENARIO THAT MAKES SENSE. >> IS THERE A BUDGET TASK

FORCE? >> WE WILL NOT SET THAT MEETING UP UNTIL JUNE SOMETIME. WE DO NOT EVEN HAVE ALL THE INFORMATION FROM THE DEPARTMENT.

>> I DID NOT EXPECT EVEN HAVE TO DO THAT.

>> I WOULD LIKE TO GIVE A SHOUT OUT TO OUR TRANSIENT EIGHT SHE MADE A PRESENTATION TO THE ROTARY CLUB TODAY.

WELL-RECEIVED AND VERY EDUCATIONAL. WE ALSO DID THE SAME THING FOR ALL THE VILLAGE BOARDS. WE INVITE ALL THOSE FOLKS TO COME. IT WAS A FULL HOUSE. I THINK THEY REALLY ENJOYED AND LEARNED A LOT. WE WILL BE ABLE TO SHARE A LOT OF

THAT STUFF TO THE COMMUNITY. >> THAT WAS GREAT INFORMATION

AND IT WAS UPDATED TOO. >> I DID THINGS WHERE I COULD.

>> I THINK YOU NEED A STANDING OVATION FOR A WELL DONE.

>> PRETTY SURE I CAN DO IT IN MY SLEEP AT THIS POINT.

>> AND VARIOUS ANYWHERE. >> OTHER COMMENTS? IF NOT, CALL FOR A MOTION AND SECOND TO ACCEPT THE INFORMATION.

>> SO MOVE. >> SECOND

>> IT HAS BEEN MOVED AND SECONDED. OF THOSE IN FAVOR

SIGNIFY WAS SAYING, AYE. >> AYE.

>> OPPOSE? MOTION PASSES. THERE IS NO NEED FOR EXECUTIVE SESSION. ALSO, AGENDA WILL, UPON OUR NEXT MEETING, REGULAR MEETING. ARE THERE ANY ANNOUNCEMENTS ? IF NOT, I CALL FOR A MOTION AND SECOND TO ADJOURN.

>> SO MOVED. >> SECONDED.

>> SO MOVED AND SECONDED. IT IS 5:05. ALL THOSE IN FAVOR

SIGNIFY BY SAYING, AYE. >> AYE.

>> OPPOSE?

* This transcript was compiled from uncorrected Closed Captioning.