Aug 19, 2024 Board Budget Workshop #1

[1. Invocation / Pledge of Allegiance;]

[00:00:10]

>> BUDGET SHIRT -- BUDGET WORKSHOP THE INVOCATION THIS MORNINGWILL BE GIVEN BY -- AND OUR PLEDGE OF ALLEGIANCE BY DIRECTOR WATSON.

>> HEAVENLY FATHER, WE THANK YOU FOR THIS DAY AND WE THANK YOU FOR THE END OF SUMMER AND THE BEGINNING OF SCHOOL. I PRAY THAT YOU WOULD BE WITH ALL OF OUR ADMINISTRATORS, TEACHERS, THAT AS UNDER A NEW ROUTINE AND THAT YOU WOULD BLESS OUR QUALITY EDUCATION AND THAT YOU WOULD KEEP EVERYONE SAFE AND HEALTHY AS WE ENTER INTO THE SCHOOL YEAR. I PRAY THAT YOU WOULD BE WITH US TODAY AS WE LOOK DECISIONS AND YOU WOULD GUIDE US AND HELP US TO DO OUR VERY BEST FOR THOSE PUTTING THESE POSITIONS. IN JESUS' NAME I

PRAY, AMEN. >> PLEASE STAND.

>> 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.

HONOR THE TEXAS FLAG. I PLEDGE ALLEGIANCE TO THEE, TEXAS, ONE STATE UNDER GOD, ONE AND INDIVISIBLE.

[2. Call meeting to order;]

>> THANK YOU DIRECTOR WATSON AND DIRECTOR FRANK. THAT BRINGS US TO CALLING MEETING TO ORDER. I DECLARE NOTICE OF THIS MEETING WAS POSTED IN ADVANCE OF THE MEETING. THIS POSTING OCCURRED INSIDE THE BOUNDARIES OF THE TOWNSHIP STATE LAW REQUIRES THAT -- EACH WITH SOME AUDIBLE SOUND OF ACKNOWLEDGMENT. DIRECTOR BAILEY. DIRECTOR FRANKS.

DIRECTOR HEISER. DIRECTOR NELSON. DIRECTOR WATSON.

DIRECTOR SNYDER . ENOUGH MEMBERS ARE PRESENT TO DECLARE

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

>> IS HER SECOND? >> AYE. OPPOSED? PUBLIC

[6. Receive, consider and accept a report regarding the 2024 no-new-revenue tax rate and voter-approval tax rate; ]

WITH THAT , IT BRINGS US TO OUR REGULAR AGENDA, WHICH IS WHY WE ARE HERE TODAY TO RECEIVE AND ACCEPT REPORT REGARDING THE 2024 TAX RATE AND VOTER APPROVAL TAX RATE. WE HAVE HAD OUR BOARD PACKETS AS WELL AS THIS INFORMATION. TWO REVIEW TR

[00:07:11]

>> OUR BUDGET IN WHAT WAY?

>> IT AFFECTS IT BECAUSE IT GENERATES --

>> THE NUMBER AT THE BOTTOM IS WORTH EACH PENNY. IN ORDER TO LOWER THE TAX RATE TO THE NO NEW REVENUE RATE, WE HAVE TO IDENTIFY $2.8 MILLION IN SAVINGS. THE VOTER APPROVAL RATE IS THE MAXIMUM RATE THAT CAN BE ADOPTED WITHOUT GOING TO THE VOTERS ON THE NOVEMBER BALLOT FOR APPROVAL. AND THAT IS AT 19.29. YOU CAN SEE THE COMPONENTS BETWEEN MAINTENANCE AND SERVICE DOWN IF THERE ARE ANY QUESTIONS, I WOULD BE GLAD TO ANSWER THEM.

>> EMOTION PER >> SECOND.

>> IT HAS BEEN MOVED AND SECONDED , SIGNIFY BY SAYING

AYE . OPPOSED? MOTION PASSES. >> WANT TO START OUT THE PROCESS FOR THIS YEAR FOR THE REVIEW OF THE BUDGET BEFORE WE GET TO THIS PRESENTING TO THE WHOLE BOARD. EARLIER THIS YEAR THE BOARD DID APPROVE A BUDGET TASK FORCE AND THE MEMBERS THAT WERE ASSIGNED TO THAT WERE THE TREASURE RICHARD FRANKS, DIRECTOR CINDY HEISER AND DIRECTOR SHELLEY SEKULA-GIBBS .

WE JUST SPENT SOME TIME TOGETHER LAST WEEK , THE TASK FORCE WITH ME AND PROBABLY MOST OF THE TEACHERS -- PEOPLE IN THIS ROOM WITH THE EXECUTIVE MANAGEMENT TEAM AND MANAGERS WERE DOING . WE ALSO REVIEWED THE BUDGET INITIATIVES THAT WE WERE GOING TO DISCUSS EITHER LATER TODAY OR TOMORROW. WHERE APPROPRIATE , THEY WILL BE MAKING RECOMMENDATIONS AND

[00:10:03]

TRANSPORTATION PLAN, VISIT THE WOODLANDS CAPITAL. ALL THE THINGS . EVERY SOURCE OF FUNDS AND USE OF FUNDS. IF WE DON'T GET THROUGH WITH THAT TODAY, WE WILL CONTINUE THAT DISCUSSION TOMORROW. WE OUR REVIEW OF THE BUDGET INITIATIVES AND POSSIBLY VOTE INAUDIBLE ] ON ADJUSTMENTS TO THE PULMONARY BUDGET.

WEDNESDAY, WE WILL FINISH WHATEVER WE ] VOTE TO CONFIRM -- SORRY, LET ME ONE. TO TAKE A RECORDED VOTE ON THE REPORT TAX RATE.

FOR WHAT IS CALLED PROPOSED TAX RATE. THIS IS NOT THE ADOPTION OF THE RATE. THAT DETERMINES IS TO HOLD A PUBLIC HEARING INAUDIBLE ] . THE GOAL THIS WEEK IS TO GET TO A PROPOSED RATE. ANY QUESTIONS ON THE PROCESS? WHAT WE START LOOKING AT TODAY IS WHAT WE CALL THE BASE BUDGET. THIS IS THE SAME WAY THAT WE DID THIS LAST YEAR. THE BASE BUDGET MAINTAINS EXISTING SERVICE LEVELS. IT MEETS ALL OF OUR CONTRACTUAL AND OBLIGATIONS. IT ACCOMMODATES WITH CHANGING ECONOMIC FACTORS. IT MEANS ESCALATIONS AND WE GO AHEAD AND ACCOUNT FOR ABOUT , OF COURSE. IT CONTINUES THE CAPITAL PROJECTS AND OTHER INITIATIVES PREVIOUSLY APPROVED BY THIS BOARD. THIS BUDGET YOU SEE TODAY, THE NUMBERS ARE ALL BASED ON MAINTAINING THE CURRENT TAX RATE OF 17 POINT -- 17.14 CENTS. ONE OF THE FIRST INITIATIVES YOU WILL LOOK LIKE IS DIFFERENT TAX RATE SCENARIOS. WHAT WE ARE LOOKING AT TODAY IS BASED ON THE CURRENT RATE. WE WILL START THOSE LATER TODAY OR TOMORROW. SOME, AS I JUST MENTIONED, PROPERTY TAX RATE SCENARIOS. IF THERE'S ANY ENHANCED SERVICES OR AMENITIES, THAT WOULD BE CONSIDERED A BUDGET INITIATIVES. BEFORE WE DIVE INTO THE NUMBERS I DO WANT TO REMIND THE BOARD TO GIVE US A QUICK OVERVIEW OF OUR FINANCIAL ASSESSMENT. THE GOAL IS TO MAKE SURE THAT WE MAINTAIN WHAT WE NEED TO DO TO BE FISCALLY RESPONSIBLE AND MAINTAIN OUR EXCELLENT FINANCIAL POSITION. WE DO CONTINUE TO BE IN A POSITION OF STRENGTH. THIS PROVIDES RESOURCES TO MAINTAIN OUR HIGH LEVEL OF SERVICE AND AMENITIES THAT ARE DESIRED BY OUR CITIZENS AND BUSINESSES. IT BENEFITS STRONG AND DIVERSE REVENUE SOURCES AND PROVIDES FLEXIBILITY . THE REASON I SAY THAT IS BECAUSE HERE WE ARE IN AUGUST OF '24 AND THIS BUDGET HAS TO SERVICE ALL THE WAY OF DECEMBER OF 2025. THINGS HAPPEN BETWEEN NOW AND NEXT YEAR AND WE WANT TO MAKE SURE THAT WE HAVE FLEXIBILITY TO ADDRESS CHALLENGES AND OPPORTUNITIES AS THEY COME UP . IT MAINTAINS A POSITIVE CASH FLOW AND RESERVE BALANCES THAT ARE EVALUATED FAVORABLY BY OUR CREDIT RATING AGENCY. WE ARE NOT BURDENED WITH UNFUNDED COST OR LARGE VACATION AND SICK AND LEAVE BALANCES. THAT IS HUGE FOR US.

MANY CITIES AND OTHER LOCAL GOVERNMENTS ARE BURDENED WITH THOSE THINGS. THIS PORT AND PREVIOUS ONES HAVE STRUCTURED OUR AND IF IT'S SO AS TO NOT CAUSE THE UNFUNDED LIABILITIES.

WE CONTINUE TO MAINTAIN A DOUBLE A+ BOND RATING FROM STANDARD REPORT AND A AA FROM MOODY'S . THAT IS THE HIGEST THAT CAN BE ACHIEVED BY A SPECIAL-PURPOSE STRICTNESS -- DISTRICT IN THE STATE OF TECH DISPARATE CHAIRMAN SNYDER ALREADY MENTIONED THIS BUT THE THINGS THAT YOU SEE LISTED THERE AT THE BOTTOM ARE THE THINGS SPECIFICALLY MENTIONED BY OUR CREDIT AGENCIES REGARDING THE TOWNSHIP. WE WANT TO MAKE SURE THAT WE ARE ABLE TO MAINTAIN THOSE TYPES OF BENEFITS AS WE GO THROUGH THIS PROCESS. I ALSO WANTED TO MENTION THESE ARE NOT APPEARED TO HIGHLIGHT THE AWARDS BUT THE HIGHLIGHT THAT FOR G FOA, AS A PROVINCIAL FINANCIAL ORGANIZATION THERE IS STRINGENT REQUIREMENTS TO RECEIVE THESE

[00:15:04]

WE HAVE OUR EXPENSES, WHICH ARE SERVICES AND AMENITIES AND RESERVES AND DEBT PROFILE . BUT BALANCES THAT IS WHAT I MENTIONED A WHILE AGO, PROPERTY TAX REVENUE. THAT IS WHERE WE GET TO THE PROPOSED RATE. WE WILL GO THROUGH EACH ONE OF THESE . DOWN AT THE BOTTOM RIGHT-HAND CORNER, YOU SEE THE TWO AND THEY NEEDED -- UNDESIGNATED BALANCES BUT ONCE WE CONSIDER THESE COMPONENTS, THAT IS WHAT WE LOOK DOWN TO IN ORDER TO MAKE SURE THAT WE HAVE A BALANCED BUDGET FOR AND THAT WE HAVE THAT BUDGET FLEXIBILITY WE WERE TALKING ABOUT. AFTER WE GET ACCOUNTING ALL OF THESE DIFFERENT THINGS, WE WILL END UP WITH AN UNDESIGNATED FUND BALANCE NUMBER AND WE WANT THAT NUMBER TO BE POSITIVE. AND IT IS. THIS IS WHAT THE BUDGET TASK FORCE REVIEWED LAST YEAR. IN 2024 BASED ON OUR FORECAST, WE WOULD HAVE AN UNDESIGNATED FUND BALANCE . RIGHT NOW THE MATERIALS IN YOUR BOOK SAY $3 MILLION UNDESIGNATED FUND BALANCE. WE TALK WITH THE TASK FORCE LAST WEEK ABOUT REDUCING THAT BY $500,000. THE REASON FOR THAT IS THIS RIGHT HERE IS OUR LATEST SALES TAX DEPOSIT REPORT. FOR THE MONTH OF AUGUST, WE HAD A $500,000 UNFAVORABLE , BELOW THE BUDGET.

WE DO NOT KNOW YET OR HAVE THE INFORMATION FROM THE COMPTROLLER TO LET US KNOW WHAT IS CAUSING THAT I HAVE A FEELING IT IS A ONE TIME ADJUSTMENT OR FROM A SINGLE OR TWO TAXPAYER AND NOT SYSTEMATIC. I WILL SHOW YOU WHY I BELIEVE THAT IN A MINUTE. BECAUSE WE ARE $700,000 UNDER BUDGET RIGHT NOW, I DO NOT BELIEVE THAT WE WILL END UP MAKING OUR BUDGET . I DO BELIEVE WE NEED TO REDUCE OUR FORECAST BY $500,000. AS BATTED THAT SOUNDS, I WANT TO HIGHLIGHT THE POSITIVE ON THIS. IF YOU LOOK AT THE COLUMN THE ACTUAL '24 /'23, WE ARE UP AND I WILL SHOW YOU OTHER DETAILS TO SAY WHAT I BELIEVE WE ARE STILL IN A VERY STRONG POSITION FINANCIALLY. IT IS JUST OVER BUDGETED FOR 2024.

THAT IS THE '24 FUND BALANCE. THE 2025 FUND BALANCE, CURRENTLY, ASSUMING WE MAINTAIN THE RATE AT 17.14 CENTS IS ABOUT $957,000 . GOING TO SUGGEST WE TAKE ABOUT $150,000 OFFER THAT TO GET TO ABOUT $800,000. AND THAT IS RELATED TO THE 500,000 SALES TAX THA WE TALKED ABOUT FOR 2024. WE WILL GO OVER A LOT MORE OF THIS. JUST TO SHOW YOU THESE ARE THE BALANCES WE STILL HAVE TO WORK WITH WITHIN A BALANCED BUDGET. THIS IS JUST SHOWING BASED ON THE RATE OF 1714 WE WILL GENERATE REVENUE . THIS INCLUDES ALL REVENUE SOURCES , NOT AS PROPERTY TAX, PROPERTY TAX, HOTEL TAX. ABOUT 167 MILLION AND THIS COLUMN SHOWS HOW IT WILL BE DISTRIBUTED AMONGST OUR VARIOUS CATEGORIES. AGAIN, LEAVING AN UNDESIGNATED FUND BALANCE ABOUT 950,000. WITH THAT WE WILL GO INTO REVENUE SOURCES. AS MENTIONED WE ARE PROJECTING A 2025 BUDGET ABOUT $167 MILLION THAT IS A $7.4 MILLION OR 4.6% INCREASE OVER OUR CURRENT BUDGET IN '24. THESE ARE THE DIFFERENT COMPONENTS THAT MAKE UP OUR '25 REVENUES SALES AND USE TAX IS THE LARGEST. $78 MILLION REPRESENTS ABOUT 47% OF OUR TOTAL REVENUE SOURCES. PROPERTY TAX AT $48 MILLION , REPRESENTING ABOUT 29% . I'M NOT GOING TO READ ALL OF THOSE . WE CAN TALK A LOT MORE ABOUT THOSE INDIVIDUALLY BUT IF YOU HAVE ANY QUESTIONS, I WILL BE GLAD TO ANSWER. WE LIKE TO TRACK, IN TERMS OF WHAT OUR PROPERTY TAXES FUNDING VERSUS OUR OTHER REVENUE CATEGORIES. YOU CAN SEE HERE, EVEN WITH MAINTAINING THE RATE AT 17.14 CENTS, OUR PROPERTY TAX REVENUE IS MAKING UP 29% OF OUR TOTAL REVENUE SOURCES. SALES TAX AT

[00:20:02]

THAT IS A POSITIVE THING. AND WE HAVE FACTORED IN A 3% GROWTH FACTOR FOR 2025 OVER OUR 2020 FORECAST LEVEL. THIS IS A LOOK HISTORICALLY ABOUT HOW SALES TAX -- WHAT THE PERCENTAGE GROWTH IS. THIS IS EVEN MORE INFORMATIONAL THAN THE PREVIOUS SLIDE. YOU CAN SEE, IT IS ALL OVER THE PLACE. SALES TAX IS VERY HARD TO PROJECT. THINGS HAPPEN OUTSIDE OF OUR CONTROL.

IN THE EARLY YEARS YOU CAN SEE THE BIG INCREASES , LIKE IN 2013 AND 2014. THAT IS WHEN HOWARD HUGHES LANDING WAS BEING DEVELOPED. THAT IS WHEN TOWN CENTER WAS HEAVILY UNDER DEVELOPMENT. CREEKSIDE WAS UNDER DEVELOPMENT. ALL OF THOSE WERE CONTRIBUTING HEAVILY TO OUR SALES TAX GROWTH. 2016 WAS A BAD ECONOMIC YEAR FOR THOSE OF YOU WHO REMEMBER. AND THEN WE GOT INTO A STEADY TYPE, IF YOU WILL, BETWEEN '17 AND '19.

I DO THINK LONG-TERM THAT IS WHERE WE END UP . ALL OF THESE FLUCTUATIONS IN GROWTH THAT WE SEE BECAUSE OF COVID AND OTHER ECONOMIC FACTORS. IF YOU HAD TO PICK A NUMBER TO SAY WE WOULD BE HAPPY WITH ON A LONG-TERM BASIS, WE COULD CONTINUE TO GROW AT THAT AMOUNT, IT WOULD BE IN THAT 2.5 TO 3% RANGE.

>> IS THERE ANYTHING SPECIAL THAT YOU ARE LOOKING AT THAT

WILL GROW THE 3%? >> WE LOOK AT ALL THE DIFFERENT CATEGORIES. WE WILL LOOK AT SOME OF THOSE SLIDES RIGHT NOW.

WHERE WE ARE TODAY, WE KNOW THERE IS A LOT OF CONSTRUCTION , COMMERCIAL CONSTRUCTION. I THINK THAT WILL CONTRIBUTE AND WILL REALLY HELP US, HOPEFULLY, BE ON THE 3% I AND PROJECTING.

IN SALES TAX , OUR RETAIL TRADE, OUR RETAIL SALES TAX MAKES UP BASICALLY HALF OF OUR TOTAL SALES TAX BASE. FOOD SERVICES, WHICH IS BASICALLY THE RESTAURANTS. IT MAKE UP THE NEXT BIGGEST CATEGORY AT 13%. AND THAT I WILL READ THE NEXT THREE BECAUSE THEY BECOME IMPORTANT AND WHAT WE LOOK AT.

MANUFACTURING, INFORMATION AND PROFESSIONAL SERVICES. THOSE ROUND OUT THE TOP FIVE CATEGORIES. AS I MENTIONED CONSTRUCTION IN SOME YEARS HAS BEEN AS LOW IN THE 1 TO 2%.

RIGHT NOW IT IS 4.4% AND I EXPECT THAT TO GROW. HERE IS A LOOK FROM JANUARY THROUGH JULY OF THIS YEAR OF HOW OUR RETAIL SALES TAX IS GROWING. THIS IS WHY I MENTIONED THAT EVEN THOUGH WE MAY MISS BUDGET, I AM STILL POSITIVE ABOUT OUR OVERALL POSITION IN SALES TAX REVENUE. RETAIL IS 50% OF OUR SALES TAX BASE. WHEN YOU SEE THESE TYPES OF GROWTH FACTORS , WHEN 50% OF YOUR REVENUE IS DERIVED FROM THAT, THAT IS A GOOD THING. HERE IS OUR ACCOMMODATION AND FOOD SERVICES. AGAIN, THAT MAKES UP THE NEXT BIGGEST CATEGORY OF OUR SALES TAX REVENUE. WE ARE SEEING POSITIVE GROWTH THERE.

WE BELIEVE JULY IS AN ANOMALY . WE DO NOT HAVE ALL OF THE INFORMATION YET BUT WE DO BELIEVE THAT IS AN ANOMALY AND

[00:25:01]

AGAIN, CONSTRUCTION WILL ONLY GROW OVER THE NEXT COUPLE YEARS YEARS. THE THING I WANT TO TALK ABOUT IS THAT MANUFACTURING, PROFESSIONAL SERVICES AND INFORMATION, IF YOUR MEMBER ON THE OTHER SLIDE, THOSE ARE THE CATEGORIES AND ALL OF THOSE ARE SHOWING A POSITIVE TREND, ESPECIALLY PROFESSIONAL SERVICES AND INFORMATION . YOU TAKE THAT INTO CONSIDERATION AND LOOK AT THE RETAIL, RESTAURANT AND PROFESSIONAL SERVICES , FOUR OF OUR LARGEST CATEGORIES, THEY ARE ALL GROWING IN A VERY POSITIVE WAY . I THINK THAT WILL SUSTAIN US AND HELP US MEET OUR PROJECTION OF 3% RATE GOING FORWARD. ANY QUESTIONS ON SALES TAX? WE WILL MOVE TO HOTEL TAX. HOTEL TAX , YOU CAN SEE BACK IN 2020 AND 2021, THOSE LOW NUMBERS WERE DUE TO COVID. THE VISIT THE WOODLANDS TEAM WITH OUR CHAIRMAN BRAD BAILEY HAS DONE A FANTASTIC JOB OF BEING ABLE TO COME OUT OF THAT -- DIRECTOR NELSON AND DIRECTOR FRANKS ALSO SERVED ON THE VISIT THE WOODLANDS BOARD OF DIRECTORS.

VERY GOOD NUMBERS COMING OUT OF COVID AND PROJECTING $10.2 MILLION FOR THIS YEAR AND $10.6 MILLION BASED ON A 3% GROWTH FACTOR FOR 2025 GET THROUGH THIS. AS A REMINDER OUR HOTEL TAX IS THE WAY THAT WE USE THOSE FUNDS IS FIRST IT GOES TO THE TO SERVICE OUR DEBT ON OUR CONVENTION CENTER BONDS. IT IS PLEDGED BY THE BOND COVENANTS. $2.9 MILLION GO THERE. VISIT THE WOODLANDS RECEIVES $4.1 MILLION OF THE HOTEL TAX IN ORDER TO FUND THEIR OPERATIONS. THE REST OF IT IS A RESERVE.

FORECASTED FOR $3.7 MILLION. THAT WILL BECOME IMPORTANT HERE IN A LITTLE BIT AND WE WILL TALK ABOUT THAT RESERVE AND HOW WE USE IT THE VARIOUS WAYS WE CAN USE IT.

>> THE DEBT SERVICE REPS OF WHEN?

>> 2028. >> HERE IS OUR MIXED BEVERAGE TAX REVENUE. WE HAD BUDGETED 1.2 MILLION . WHEN ME AND THE TEAM PREPARED THE FORECAST WE WENT WITH 1.4 MILLION . I THINK IT WILL BE CLOSER TO $1.5 MILLION THIS YEAR. AND THEN WE DID BUDGETED FOR A 3% INCREASE, WHICH IS HOW WE GOT TO THE 2025 BUDGET NUMBER . YOU WILL RECALL THAT THIS WAS IMPLEMENTED IN OCTOBER OF LAST YEAR DUE TO THE SUCCESSFUL LEGISLATIVE INITIATIVE BY THIS BOARD OF DIRECTORS IN TERMS OF US BEING ABLE TO GET THE BEVERAGE TAX AS OPPOSED TO THE STATE RETAINING IT. IT WAS NOT A NEW TAX BUT IT WAS JUST THE TAX WAS GOING TO THE STATE OF TEXAS AND THE SUCCESSFUL LEGISLATION PASSAGE ENABLES THE TOWNSHIP TO RECEIVE THIS $1.5 MILLION.

>> WOULD YOU PLEASE GO BACK TO PAGE 32 ?

>> YES. >> YOU MENTIONED THAT YOU THOUGHT THAT THE SALES TAX OF JULY WAS AN ANOMALY. BUT HERE WE HAVE THE HOTEL TAX DROPPING 11.4% . NOT ACTUALLY DROPPING , WELL, $100,031 . CAN YOU! NOT ONE?

>> I'M GOING TO LET -- IS NICK AND HEAR?

>> THE HOTEL TAX IS ONE MONTH LAG AND THE SALES TAX IS TWO MONTHS. THAT IS NOT THE ANSWER.

>> THIS IS RELATED -- WE DID HAVE SOME OF THE VOLUME THAT WAS DOWN IN TERMS OF BUSINESS. THE GROUP BUSINESS IS THE BIGGER CONVENTIONS -- BUT CONVENTIONS ARE CONSIDERED

[00:30:02]

LATER THIS YEAR. >> THERE WAS A MAJOR CONFERENCE LAST YEAR DURING THAT MONTH . IT IS JUST MOVING TO A DIFFERENT MONTH. WE MET YOU FEEL CONFIDENT THAT THE HOTEL TAX IS NOT ON A DOWNWARD TRAJECTORY?

>> YES >> HOPEFULLY WE WILL HIT $10 MILLION THIS YEAR, WHICH IS A HUGE JUMP FOR US. WE WILL DEFINITELY BE ON TRACK FOR THAT.

>> I AGREE THAT YOU'RE DOING WELL AND I CONGRATULATE YOU ON THAT. AS WELL AS ON THE LIQUOR TAX. HOWEVER, THE PROJECTIONS OF THE ECONOMY ARE NOT GOOD RIGHT NOW THERE ARE A LOT OF WARNING SIGNS THAT SAY WE ARE IN A RECESSION. I KNOW THAT THE TOWNSHIP HAS BEEN A RELATIVELY IMMUNE FROM A LOT OF THOSE EXTERNAL MEASURES OVER THE YEARS. IF YOU HAVE TWO THINGS THAT ARE GOING IN A DOWNWARD DIRECTION , I THINK IT IS PRUDENT FOR THIS BOARD TO TAKE A STRONG LOOK AT THAT AND TO LOOK AT WAS WHAT IS GOING ON IN THE REST OF THE COUNTRY AND NOT JUST HAVE ROSE-COLORED GLASSES ON.

>> I COMPLETELY AGREE AND WE DO LOOK AT THAT ALL OF THE TIME AND DO NOT HAVE ROSE-COLORED GLASSES ON. PART OF WHAT THE SALES TAX IS WE CAN SEE -- THAT IS WHY WE TRACK THE CATEGORIES . WE CAN SEE THAT IT IS CONCENTRATED IN THOSE TWO INDUSTRIES. WE ARE IN THE ONE INDUSTRY WITH TWO COMPANIES.

THAT IS WHAT I SHUT ALL OF THE OTHER FACTORS . WE ARE CONTINUING TO SEE THE POSITIVE GROWTH. TO YOUR POINT, IT IS ONE REASON WE ARE ONLY PROJECTING 3% SALES TAX GROWTH.

IN PREVIOUS YEARS IT HAS BEEN HIGHER THAN THAT WE DO THINK IT IS PRUDENT TO BE MORE CONSERVATIVE IN THAT APPROACH.

>> JUST TO CORRECT YOU ON THAT, YOU ARE ALWAYS CONSERVATIVE. I HAVE WATCHED YOU FOR MANY BUDGET. THREE IS YOUR SOLID NUMBER FOR PROTECTIONS OF SALES TAX BUT I WOULD SAY YOU WERE

ALWAYS CONSERVATIVE. >> I AM . IT HAS BEEN AS HIGH AS 3.5 OR 4.5. I AM STICKING WITH THREE THIS YEAR. UNLESS THE BOARD DIRECTS ME OTHERWISE.

>> THIS IS RESTRICTED FUNDS BUT I'VE HAD A COUPLE QUESTIONS ABOUT THIS. I WANTED TO SHOW IT IS OUR OTHER TAX REVENUE.

AGAIN, THIS WAS RE-CREATED THROUGH THE LEGISLATURE AND WE HAVE AN AGREEMENT WITH THE PAVILION . THE PAVILION IS THE ONLY QUALIFYING VENUE IN THE TOWNSHIP THAT IS ELIGIBLE TO RECEIVE THIS TAX AND IT IS 5% ON THE PRICE OF A TICKET. THE PAVILION, WE RETURN 90% TO THE PAVILION AND IS RESTRICTED FOR CULTURAL EDUCATION AND PROGRAMS. THE TOWNSHIP RETAINS 10% AND OURS IS SIMILARLY RESTRICTED FOR THE SAME

PURPOSES. >> LET US PAUSE FOR JUST A MINUTE. FOR THOSE OF YOU WHO HAVE HEARD ME THROUGH PREVIOUS BOARDS, YOU HAVE HEARD ME COMMENT THAT THIS ADVANCE ADMISSIONS TAX IS SOMETHING THAT I THINK IS AN UNUSUAL SITUATION WHERE WE HAVE AN OPPORTUNITY USE THIS REVENUE STREAM OF $2 MILLION THAT WOULD COME IN HANDY WITH THIS BUDGET.

AND WE WOULD NOT HAVE TO AVOID THE IDEA OF CUTTING PROPERTY TAXES BECAUSE WE WOULD HAVE THIS $2 MILLION COMING IN. AND IF YOU LOOK AT THE CONTRACT THAT WAS SIGNED WITH THE PAVILION, I THINK IT WAS DONE WELL AT THE BEGINNING OF THE TOWNSHIP, 2010. IT WILL EXPIRE IN 2031. IT HAS OUTLIVED ITS USEFULNESS. IT WAS A DONATION FROM THE TAXPAYERS TO THE CYNTHIA WOODS MITCHELL PAVILION TO HELP THEM BE SUCCESSFUL AND TO LAUNCH AND BE A CULTURAL ASSET OF THE COMMUNITY. THEY HAVE EXCEEDED THEIR REVENUE GOALS OVER TIME. THEIR ACCORDING TO THEIR 990 REPORTS TO THE FEDERAL GOVERNMENT ARE VERY, VERY LARGE. MULTIMILLION DOLLARS. THEY PAY THEIR EXECUTIVES HUNDREDS OF THOUSANDS OF DOLLARS, OVER HALF $1 MILLION. AT LEAST THE TOP NUMBERS AND I THINK WE NEED TO LOOK AT THIS STRONGLY . IS THIS A CONTINUED PRACTICE THAT WE WANT TO CONTINUE TO MARKET DO WE REALLY WANT TO GIVE THE PAVILION , A SELECTED NONPROFIT, IF YOU WANT TO CALL

[00:35:03]

>> WE ARE UNDER CONTRACT UNTIL 2030.

>> THE SENATE BILL 2515 STATED SPECIFICALLY THAT IT WAS ONLY FOR CULTURE EDUCATION IN THE DISTRICT, TO YOUR POINT IT DID NOT NAME THE CYNTHIA WOODS MITCHELL PAVILION. WITH THAT, THE FUNDS THAT WERE GIVEN FROM THE TOWNSHIP TO THE PAVILION HAS HELPED FUND AND CREATE THE CULTURAL ARTS WITH IN THE ENTIRE WOODLANDS AND HAVE DONE IT SUPERBLY . MANY YOUNG CHILDREN AS WELL AS FAMILIES AND ADULTS HAVE BENEFITED BY THE PROGRAMS THAT THEY HAVE CREATED. AND THAT HAVE BEEN LONG-TERM. AN AGREEMENT THAT DOES NOT EXPIRE FOR SEVERAL MORE YEARS, 2030 , AT THAT TIME, CAN BE ADDRESSED AND LOOKED AT. WE COULD NOT USE IT FOR CAPITAL -- WHAT CAN WE USE

IT FOR? >> WE COULD USE IT FOR THE CONSTRUCTION OF A PERFORMING ARTS CENTER AND NOT HAVE TO RELY COMPLETELY ON HOTEL TAX AND SALES TAX. WE COULD USE IT FOR THE CONSTRUCTION OF THE PERFORMING ARTS CENTER.

>> WE COULD USE IT TO -- THERE IS SEVERAL DIFFERENT THINGS.

SOME OF THIS WILL GET INVOLVED IN DIFFERENT NEGOTIATIONS. I WILL NOT TALK ABOUT IT. HOWEVER, WHAT THIS CANNOT BE USED FOR IS TO REDUCE THE PROPERTY TAX. THIS IS RESTRICTED REVENUE . IT CAN ONLY BE USED FOR CULTURAL ARTS

PURPOSES . >> I DO WANT TO SAY SOMETHING ON THIS. I THINK EVERY COMMUNITY IN THIS COUNTRY WOULD GIVE A $2 MILLION INCENTIVE TO HAVE SOMETHING LIKE THE PAVILION IN THEIR COMMUNITY. LET ME GIVE YOU A PERFECT EXAMPLE WE ARE UNDER NEW LEADERSHIP AT THE PAVILION. I WILL MISS THIS WEEKEND. HOW ACTIVELY JEFF YOUNG AND HIS TEAM ARE LOBBYING -- WHAT IS THE NAME OF THE COMPANY?

>> LIVE NATION . >> TO GET EVENTS HERE. HE SUCCESSFULLY TALKED TWO ACTS INTO COMING HERE AND DOING TWO NIGHTS AND THEN GOING TO THE TOYOTA CENTER FOR ONE NIGHT.

ONE IS CODY JOHNSON AND THE OTHER IS POST MALONE. I CAN PROMISE YOU, I WOULD BE WILLING YOU A STEAK DINNER AT MORTON'S THAT WHEN THE LIQUOR TAXES AND THE SALES TAXES AND THE HOTEL TAX COMES BACK IN AND FOR THE MONTH THAT THOSE TWO EVENTS ARE GOING ON WILL BE SUBSTANTIAL. THAT IS AN EXAMPLE OF WORKING HARDER, AND TRYING TO GET NEW THINGS IN . TO ME, I THINK YOU SEE, ALSO, THE HOME OF THE HOUSTON SYMPATHY -- SYMPHONY IS IN THE WOODLANDS. THERE ARE SO MANY FREE EVENTS. THEY COME HERE THAT THIS HELPS SUPPLEMENT. AND ROCK PAYS . IT REALLY HELPS DO SO MUCH FOR OUR COMMUNITY THAT ENHANCES WHAT WE DO INSTEAD OF THE TRACKS. I WILL AGREE WITH YOU . AS WE START WORKING ON LOOKING AT PERFORMING ARTS CENTERS OR THINGS LIKE THAT, THESE ARE THINGS WE CAN TALK TO ABOUT THAT BECAUSE I DON'T THINK ANYBODY ON STAFF WILL BE MANAGING A PERFORMING ARTS CENTER YOU WILL NEED HELP TO DO THAT. THIS IS SOMETHING WE CAN LOOK AT AND EXPLORE.

>> I THINK JUST BE MINDFUL THAT THESE ARE NOT USUALLY EXCLUSIVE. IF THE PAVILION IS NOT DOING WELL THE TOTAL TAX

RECEIPT LINE IS NOT $2 MILLION. >> AND YOU WILL STILL HAVE

SALES. >> THE TAXES BEING DERIVED BECAUSE OF THE PAVILION SUCCESS, WHICH IS DUE IN PART TO US GIVING THEM THE 90%. TO THE EXTENT YOU START TO PULL THAT, PERHAPS, TICKET SALES GO DOWN AND THE TAX RECEIPT NUMBER GOES DOWN. IT IS ALL INTERTWINED.

>> THE CONTRACT IS GOODTHROUGH 2030 , CORRECTED?

[00:40:02]

>> 2031. >> THROUGH THE END OF '30 .

>> WE HAVE A LOT OF TIME TO BE IN THESE POSITIONS TO LOOK AT THAT IN THE NEXT FIVE OR SIX YEARS IN TERMS OF WHAT WE THINK THE ALLOCATION WILL BE. WE WILL GET A LOT MORE INFORMATION IN THE NEXT COUPLE YEARS SO THAT WE CAN USE THOSE FUNDS.

>> ANY OTHER COMMENTS? >> THE OPPORTUNITY TO RENEGOTIATE THAT IN A FEW YEARS.

>> IF NOT , PRESIDENT SHARP . >> WE HAVE DISCUSSED ALL OF OUR OTHER MAJOR REVENUE SOURCES. NOW WE WILL LOOK AT THE PROPERTY TAX REVENUE. PROPERTY TAX REVENUE IS DERIVED FROM TWO PRIMARY COMPONENTS BUT THE TAXABLE PROPERTY VALUE AND THE PROPERTY TAX RATE. LET US LOOK AT BOTH OF THOSE. STARTING OFF WITH REVENUE LOOKING BACK WITH 2020 THROUGH 2025. OVER THIS FIVE YEAR PERIOD EARLY SIX YEAR PERIOD, THIS SHOWS WHAT REVENUE GENERATED. THE 2025 REVENUE, AS I MENTIONED BEFORE, IS BASED ON MAINTAINING THE PROPERTY TAX RATE AT 17.14. WHAT I WANT TO POINT OUT IS THAT WOULD GENERATE $48.3 MILLION, WHICH IS EXACTLY THE AMOUNT THAT FIVE YEARS AGO IN 2020 WAS GENERATED. THERE HAS BEEN NO INCREASE IN PROPERTY TAX REVENUE OVER THOSE FIVE YEARS. THAT IS REMARKABLE WHEN YOU THINK ABOUT ALL OF THE SERVICES , THE ENHANCED SERVICES AND AMENITIES THAT HAVE BEEN APPROVED DURING THAT TIME. BUT THIS SHOWS IS VERY CAREFUL AND THOUGHTFUL MANAGEMENT OF THE

TAX RATE. >> OUR PROPERTY TAX VALUES, ARE TAXABLE VALUES FOR 2025 R $28.1 MILLION, ACCORDING TO THE CERTIFIED TAX RULES THAT WERE PROVIDED BY THE TAX ASSESSOR'S OFFICE. WHAT THAT MEANS IS THERE WAS AN INCREASE IN THE REVALUATION . ON AVERAGE, PROPERTY VALUES WENT UP! 5% .

THAT IS THE NUMBER ON THE BOTTOM RIGHT-HAND CORNER. THE NEW PROPERTY GROWTH ONLY COUNTERBORE ABOUT .4% OF OUR TOTAL TAXABLE VALUE GROWTH, WHICH IS THE SAME AS IT WAS IN 2024. THAT IS NOT SURPRISING. WE KNOW THERE HAS NOT BEEN, ESPECIALLY IN TERMS OF RESIDENTIAL, WE ARE BUILT OUT.

WE'VE HAD SOME CONSTRUCTION COMMERCIAL PROJECTS GOING ON THAT WHEN YOU COMPARE OVERALL TO THE $20 MILLION , IT TAKES QUITE A BIT TO MOVE THAT NEEDLE. OUR PROPERTY TAX EXEMPTIONS AFFECTS , THOSE AFFECT THE VALUES, THE TAXABLE VALUES. WE HAVE AN AGE 65 AND OLDER EXEMPTION OF $50,000. THE BOARD INCREASE THAT LEDGER FROM 40 TO 50 THAT LOWERS TAXABLE VALUES OF BY $428 MILLION AND RESULTS IN A REDUCTION IN TAXABLE REVENUE TO THE TOWNSHIP . YOU CAN LOOK AT AS A SAVINGS FOR THE TAXPAYERS OF ABOUT $734,000. THE BOARD IMPLEMENT A 3% HOMESTEAD EXEMPTION THAT LOWER TAXABLE BUYS BY ABOUT $450 MILLION AND RESULTED IN A $712,000 REDUCTION IN REVENUE THIS YEAR. HERE IS A HISTORIC LOOK AT OUR PROPERTY TAX RATE.

STARTING BACK FROM WHEN WE WERE BY COMMUNITY ASSOCIATIONS OF BOTH WOODLANDS PRIOR TO 2010, THE COMPOSITE TAX RATE BETWEEN THE VARIOUS PROPERTY OWNER ASSOCIATION WAS $.42 AT THAT TIME AND NOT TAX-DEDUCTIBLE. YOU CAN SEE THE STEADY DECREASE THERE OVER THE YEARS. AGAIN, A REFLECTION OF CAREFUL MANAGEMENT OF THE TAX RATE, DEPENDING ON WHAT THE ECONOMIC CONDITIONS WERE AT THE TIME . IT HAS NOW LOWERED TO 17.14 AS WE HAVE BEEN DISCUSSING. THE OTHER THING WE DO WITH THE TAX RATE IS TRACK IT BASED ON WHAT THE KNOWN NEW REVENUE RATE IS.

THAT IS THE TAX RATE THAT PRODUCES THE SAME AMOUNT OF REVENUE FOR THE SAME PROPERTIES THAT ARE TAXED BOTH YEARS.

TOWARDS THE BEGINNING OF THIS CHARGE, YOU CAN SEE THAT THE ADOPTED RATE WAS LOWER THAN THE NO NEW REVENUE RATE. THIS IS WHEN WE HAD VERY HEAVY HELD BOUT OF THE TOWN CENTER, STERLING RIDGE WAS STILL UNDERDEVELOPED , CRITICIZED -- CREEK SIZE BILLET WAS BEING DEVELOPED. THEY WERE ABLE TO ADOPT A LOW REVENUE RATE. 2017 WAS A HICCUP IN THE ECONOMY, AS WE DISCUSSED. THE BOARD CHOSE TO BE CONSERVATIVE AND MAINTAIN THE RATE AT THAT TIME. IT WAS LIKELY ABOVE THE NO NEW REVENUE RATES. AND IT HAS TRACKED PRETTY WELL OVER THE NEXT

[00:45:02]

>> PRESIDENT SHARP, COULD YOU PRODUCE A CHART OR GRAPH THAT SHOWS WHICH OF THESE COMMUNITIES, CURRENTLY IS WHAT IS RELEVANT ARE GOING TO ADOPT A TAX RATE BELOW OR EQUAL TO THE NO NEW REVENUE RATE ? I WOULD LIKE TO SEE THAT .

>> FOR THIS YEAR? >> I WOULD LIKE TO SEE THAT .

WE MET ONCE THAT INFORMATION BECOMES AVAILABLE .

>> SOME OF IT, I THINK, IS. >> KNOW IT HAS ADOPTED RATE YET BUT A FEW HAVE DONE A PROPOSED RATE. WE CAN GATHER THAT. I THINK THE COUNTY AND SHENANDOAH HAS. I KNOW THEY ARE NOT

ADOPTED. >> THE COUNTY IS PROPOSING A RATE HIGHER THAN THE CURRENT RATE SHENANDOAH IS LOWERING

THERE'S MARGINALLY. >> WHAT ABOUT ISD?

>> DO NOT KNOW. >> OKAY, THANK YOU.

>> WE DO TRACK THAT AND WE WILL BRING IT TO YOU AND ME ADOPT THE BUDGET. ANY QUESTIONS ON ANY OF THE REVENUE SOURCES BEFORE WE MOVE TO EXPENSES? WE WILL KEEP ON GOING. WE ARE PROTECTING CONSOLIDATED EXPENDITURES OF $171.7 MILLION.

THAT IS A DECREASE OF A $27.3 MILLION OR 13.7% FROM THE PRIOR YEAR. IS IMPORTANT TO LOOK AT THE REASONS FOR THAT DECREASE.

IT IS DECREASING BECAUSE OUR CAPITAL EXPENDITURES ARE DECREASING, NOT BECAUSE WE ARE NOT CONTINUING TO REPLACE OUR CAPITAL IN A TIMELY MANNER BUT WE JUST HAD SOME VERY LARGE PROJECTS. THEY WERE BUDGETED FOR 2024 AND THEY WILL BE COMPLETE AND WE DO NOT CARRY THOSE OVER INTO 2025. AN EXAMPLE WOULD BE THE ART DEPARTMENT STATION FIVE. I KNOW IT WILL NOT BE CONSTRUCTED UNTIL NEXT YEAR BUT IT WAS BUDGET AND WE PULLED OUT THE FUNDS IN 2024. WE DO NOT NEED

[00:50:05]

>> I HAVE QUESTIONS. >> YES?

>> FOR THE PURPOSES OF ELUCIDATING THIS PIE CHART, WOULD YOU EXPAND ON WHAT IS CONTAINED IN CUSTOMER ENGAGEMENT? THAT IS AN UNUSUAL DEPARTMENT FOR MUNICIPALITIES .

IT IS MORE LIKE SOMETHING YOU WOULD FIND AT MACY'S OR NORDSTROM'S. AND THE OTHER IS OTHER .

>> OKAY. THE CUSTOMER ENGAGEMENT INCLUDES THE ALPHA AND OMEGA CONTRACT. AND THAT THE STAFF, WHICH IS LED BY ANGEL IS INCLUDED IN THAT STAFF RELATED EXPENSES. THAT IS PRIMARILY A CONTRACT. OTHER IS OUR -- LET ME SEE. THAT IS GOING TO BE VILLAGE ASSOCIATIONS -- WHAT IS IN

OTHER? >>

>> CARLTON WOODS, WE HAD A PORTION OF THE 15% OF WHAT WE COLLECTED REVENUE GOES TO CARLTON WOODS BY AGREEMENT.

THAT IS BECAUSE WE DO NOT PROVIDE SOME OF THEIR FIRST SERVICES . WE WERE AND ALSO THEY RPA? THAT IS $2.4 MILLION SEPARATE RPA. IT IS SPREAD OUT ON THE NOTEBOOK. 8-27 IN THE

FRONT CHART. >> THE EVENTS AND MISSION TAX THAT IS JUST TALK ABOUT IS INCLUDED IN THAT NUMBER. THE VILLAGE ASSOCIATION PAYMENTS ARE INCLUDED IN THAT NUMBER.

>> IS THAT GOING UP FOR EVERYTHING OR IS IT MOSTLY THE EVENT TAX GOING UP AND THE OTHER THAT IS INCREASING?

>> LET ME LOOK. >> ONLY THE EVENT TAX IS INCREASING, OKAY. WE WILL SHARE WITH YOU THAT THE RPA AS WELL AS THE YMCA, THE CARLTON WOODS ASSOCIATION, THE VILLAGE ASSOCIATION AND THE CYNTHIA WOODS MITCHELL EVENTS TAX -- AND THEY ARE ALL OUTLINED WITH REGARD TO BUDGET FORECAST FOR '25, BUDGET FOR '25, THE CHANGE, AND THE PERCENTAGE OF THE CHANGE FROM '24 TWO '25.

>> ANY QUESTIONS ON THAT? >> THANK YOU.

>> IN TERMS OF EXPENDITURES WE WANT TO MAKE SURE WE ARE ALLOCATING OUR RESOURCES WHERE OUR RESIDENTS AND BUSINESSES WOULD LIKE FOR THAT TO BE ALLOCATED. WHAT IS IMPORTANT TO THEM. THIS IS FROM THE LAST TIME WE DID A COMMUNITY SURVEY.

THE QUESTION WAS HOW WOULD YOU RATE THE FOLLOWING IN TERMS OF IMPORTANCE? 94% OF THE RESPONDENTS LISTED MAINTAINING PATHWAYS AND STREETSCAPES. THE FIRE DEPARTMENT OR EMERGENCY

[00:55:02]

THE OTHER QUESTION WE LOOK AT IS HOW WOULD YOU RATE YOUR SATISFACTION WITH THE FOLLOWING? 96% OR HIGHER RESPONDENTS TWO YEARS AGO BUT THAT THE EMERGENCY MEDICAL SERVICES, PARKS AND RECREATION, GARBAGE COLLECTION, SWIMMING , AGAIN, RECREATION. PARKS AND RECREATION IS A HEAVY DEMON THERE. 96% HIGHER SATISFACTION RATE. I WILL BRAG ON OUR STAFF ONE MORE TIME. THIS IS SOMETHING CONSULTANT SAID WAS THE HIGHEST SATISFACTION RATE SHE HAS EVER SEEN IN HER 36 ILLUSTRIOUS CAREER. THOSE ARE GREAT RESULTS AND SHOWS US THAT WE ARE ALLOCATING OUR RESOURCES APPROPRIATELY. THIS IS A LOOK, OVERALL, OF WHERE OUR EXPENDITURES ARE INCREASING OR IN SOME CASES DECREASING. THE FIRE DEPARTMENT IS AT -- AND WE WILL GO OVER THESE IN MORE DETAIL. THIS IS JUST A HIGH-LEVEL CHART AND WE TALK ABOUT THE DIFFERENT COMPONENTS.

THE FIRE DEPARTMENT AT $1.9 MILLION. GENERAL GOVERNMENT AT $1.5 MILLION. WE WILL SHOW YOU IN A MINUTE. THERE IS A LOT OF DEPARTMENTS THAT MAKE UP GENERAL GOVERNMENT.

TRANSPORTATION IS GOING UP. SOLID WAYS, BASED ON THEIR CONTRACT RENEWAL . I'M NOT GOING TO READ THROUGH ALL OF THESE BUT WE WILL GO THROUGH THEM. PARKS AND RECREATION IS DECREASING BECAUSE WE HAVE A HUGE TREE REMOVAL BUDGET THIS YEAR, AS YOU ALL KNOW. TO THE EXTENT THAT WE DO NOT NEED ALL OF THAT GOING FORWARD, HOPEFULLY. WE HAVE REDUCED THAT DOWN TO SOMETHING A LITTLE BIT -- IT IS STILL ELEVATED BUT A LITTLE CLOSER TO NORMAL WE HAVE ALREADY TALKED ABOUT HOW OUR CAPITAL PROJECTS DECREASED BETWEEN THE YEARS. THIS IS WHAT MAKES UP THE DIFFERENT DEPARTMENTS. IT MAKES UP OUR PARKS AND RECREATION DEPARTMENT. THIS IS WHERE THE MAJORITY OF RESOURCES ARE ALLOCATED TO WE HAVE TOWNSHIP EVENTS , OUR ADMIN AND PLANNING, AQUATICS, TOWN CENTER RECREATION AND THEN PARKS OPERATION AND STREET SCAPE MAINTENANCE. THE TOTAL BUDGET OF $39.7 MILLION FOR 2025, WHICH ABOUT $224,000 DECREASE THANKS , HOPEFULLY, THE TREE REMOVAL AND WE DID NOT WANT TO JINX OURSELVES BY KEEPING ALL THAT MONEY IN THE BUDGET. WE DID DECREASE IT.

>> WE HAVE INCREASED THE BUDGET LAST YEAR TO $1 MILLION FOR TREE INSTALLATION. DO YOU CONTINUE TO KEEP THE $1 MILLION HERE FOR REPLACEMENT OF OUR TREES BECAUSE WE LOST THE VERY

MANY? >> THE FORESTRY MANAGEMENT IS STILL AT $1 MILLION. IT IS INCLUDED IN THE STREET SCAPE MAINTENANCE. THAT IS CONTAINS AN ONGOING? RATES.

>> WHAT WAS THE BUDGETED AMOUNT FOR MAINTENANCE LAST YEAR?

>> I HAVE TO LOOK IT UP. I'M GLAD THAT $1 MILLION IS STILL IN FOR THIS YEAR.

>> THAT IS WHERE TREE REMOVAL IS BUDGETED. THAT IS WHY IS GOING DOWN HOW MUCH DID YOU SAY?

>> 11.8. >> OKAY.

>> ARE THE QUESTIONS ON PARKS AND RECREATION EXPENSES?

>> WHAT IS ALL IN STREETSCAPES AGAIN?

>> TREE REMOVAL , FORESTRY MANAGEMENT AND THEN THE STREETSCAPE PROGRAM IN TERMS OF OUR MAJOR ROADWAYS. THE MOWING, CLEANING, MAINTENANCE -- ALL OF THOSE INCLUDED IN THAT. IS

IRRIGATION INCLUDED IN THAT? >>

>> BRIGHTVIEW, IS THAT WHERE IT SHOWS UP?

>> IT IS IN STREETSCAPES. THAT IS MY QUESTION. ONE THING YOU HEARD FROM THE BOARD IS PRETTY CONSISTENT AND WANTING TO MAINTAIN OUR LEVEL NOT JUST MAINTENANCE BUT EXCEEDING EXPECTATION OF DOING THINGS. IF WE ARE DECREASING FROM OTHER .8

TO 10.5, THAT CONCERNS ME. >> WE ARE DECREASING THE BOARD JUST APPROVED A 2 MILLION DOLLAR TREE REMOVAL --

[01:00:04]

>> IT WAS AN EMERGENCY. >> WE DO NOT INTEND TO KEEP TREE REMOVAL AT $2 MILLION. I THINK WE HAVE TAKEN IT DOWN TO $800,000. ON A NORMAL YEAR TREE REMOVAL IS ABOUT 550,000. SO WE ARE STILL KEEPING IT AT AN ELEVATED $800,000. IF THERE'S A THAT IS WHY WE KEEP RESERVES BUT IT IS A ONE-TIME EXPENSE AS OPPOSED TO KEEPING IT IN OUR ONGOING OPERATIONS.

>> I DON'T KNOW IF THIS IS THE TIME TO DO IT. ONE THING I REALLY THINK WE NEED TO LOOK AT. AND I HAVE GONE THROUGH THIS MASSES -- MASSIVE BUDGET BOOK AS MS. I COULD OVER THE WEEKEND. CUTTING TREES DOWN IN OUR RIGHT-OF-WAY AREAS AND THINGS LIKE THAT, THAT IS FINE. FOR DECADES , BUT OF STUMPS HAVE NEVER BEEN REMOVED. YOU SEE THESE TREES GET CUT AND THEN THE STUMP SITS THERE IN THE MIDDLE AND IT LOOKS PRETTY BAD. I DON'T KNOW IF WE CAN ADD AN ITEM TO A STUMP REMOVAL GRINDER TO THE TOWNSHIP'S BUDGET. ESPECIALLY THE AMOUNT OF TREES THAT ARE DOWN AND HIGH-PROFILE AREAS BEING OLD-GROWTH TREES. IT WILL NOT ONLY MAKE IT APPEALING BUT FOR ANOTHER AREA TO PLANT ANOTHER TREE THAT WE CAN DO FOR

REFORESTATION. >> THAT COULD BE AN INITIATIVE THAT YOU COULD COMMENT ON OR DR. NOONS CAN ANSWER THAT NOW?

>> I KNEW WHAT DIRECTOR BAILEY IS TALKING ABOUT WE ARE STILL IN THE ACTIVE REMOVAL OF THE STATE . WHAT WE WANT TO DO IS COME BACK TO REMOVE THE STUMPS. SOME OF THE STUMPS THAT YOU ARE TALKING ABOUT, I THINK YOUR CONCERN IS WOODLANDS. THERE IS A LOT ON LAKEWOOD THAT HAVE JUST BEEN THERE FOR A LONG TIME. WE JUST KIND OF LEAVE THE STUMP. THESE ARE PRETTY PROMINENT AREAS. THERE IS A LOT THAT HAVE BEEN THERE BEFORE THE

STORM >> CORRECT. IT WOULD BE GREAT IF WE CAN ADD THAT TO WHAT OF YOUR WISH LIST.

>> THIS IS AT A HIGH LEVEL. ALL OF THE DETAIL IS BY LINE ITEM IS WITH IN YOUR BUDGET DOCUMENT. WE CAN CERTAINLY GO TO THE BINDERS FOR ANY SPECIFIC QUESTIONS. IN GENERAL PARKS ADMIN AND PLANNING IS INCREASING BY ABOUT 149,000 OR 4.7% FOR THE REASONS THAT YOU SEE HERE. OUR PARK OPERATIONS IS INCREASING BY 142,000 OR 1.5%. WE DO HAVE AN INCREASE AND WE TALK ABOUT THIS MORE IN STAFFING IN TERMS OF REQUESTING NEW POSITIONS TO ADDRESS THE THINGS WE HAVE BEEN TALKING ABOUT IN TERMS OF COMMUNITY MAINTENANCE. THAT IS OFFSET BY A REDUCTION IN SOME OF OUR CONTRACTING PARK MAINTENANCE AND ELECTRICAL REPAIRS. AGAIN, WE ARE NOT DECREASING THE LEVEL OF SERVICE. THESE WERE JUST OVERESTIMATED EXPENSES FROM LAST YEAR. IN TERMS OF THE ELECTRICAL REPAIR WE ARE SEEING HUGE SAVINGS BECAUSE OF THE L.E.D. LIGHTING, THE NEW LIGHTING TECHNOLOGY THAT IS OUT THERE AND HAS SIGNIFICANTLY REDUCED THE AMOUNT WE SPENT ELECTRICAL REPAIRS NOW. HERE ARE THE REASON FOR THE INCREASES AND DECREASES.

AQUATICS, OUR GOAL IS TO RECOVER APPROXIMATELY 50% OF EXPENSES THROUGH REVENUES . WE WILL SHOW HERE IN A SECOND THAT WE DO THAT. HERE IS A LOOK AT OUR RECREATION DEPARTMENT. OUR GOAL IS TO RECOVER 100% OF EXPENSES THROUGH REVENUES. THIS SHOWS RIGHT HERE THAT WE DO THAT IN THE 2025 BUDGET. WERE DOING IN THE 2024 FORECAST. WE EXPECT TO MORE THAN COVER OUR RECREATION EXPENSES AND TO RECOVER CLOSE TO 50% IN TERMS

OF AQUATICS. >> JUST A COUPLE SLIDES BACK IT SAID SWIM TEAM $10,000. WHAT ARE WE DOING WITH THAT?

>> WE ARE STILL KEEPING THE SWIM TEAM EXPENSES. WITH THE AMOUNT OF MONEY WE HAVE BUDGETED FOR THE DIFFERENT EQUIPMENT AND THINGS THAT ARE ASSOCIATED WITH THAT WAS HIGHER THAN WHAT WE NEED TO CONTINUE TO PROGRAM. THAT IS WHAT A LOT OF THESE ADJUSTMENTS THAT ARE ON THE SMALLER SIDE. EVERY YEAR, WE DO NOT DO ZERO-BASED BUDGETING BUT WE DO NOT JUST TAKE THE BASE BUDGET AND INCREASE IT BY A CERTAIN AMOUNT

[01:05:01]

ALL OF THOSE ARE INCLUDED HERE. YOU CAN SEE THAT ONE OF THE LARGEST INCREASES IS OUR PROGRAM EXPENSE FOR THE HOLLOWAY HOLIDAY DECORATIONS THAT WERE APPROVED BY THE BOARD EARLIER THIS YEAR. THAT IS BEING FUNDED BY HOTEL TAX REVENUE. CONTRACTED SERVICES FOR THE MAINTENANCE OF THE WATERWAY IN TOWN GREEN PARK IS INCREASING. AS YOU WILL RECALL WE TOOK OVER -- OF THE WATERWAY WAS CONVEYED TO US LAST YEAR.

AS WE HAVE GOTTEN IN THERE AND SEE WHAT IS TRULY REQUIRED FOR MAINTENANCE TO KEEP IT AT A GOOD LEVEL, AS WE JUST TALKED ABOUT BUT WE DO NEED TO INCREASE THAT BUDGET.

>> THE WATER FEATURE, IS THAT INCLUDED IN HERE WITH WHATEVER

WE HAVE TO DO WITH IT? >> NO, MA'AM. THAT IS COMING.

THIS IS THE TEAM THAT PRODUCES LIGHTING OF THE DOVES, RED HOT AND BLUE. AND THE MANY OTHER EVENTS THAT WE IN THE COMMUNITY ENJOYED DURING THE YEAR. THERE IS A DECREASE OVERALL BUT THAT IS BECAUSE THE 50TH ANNIVERSARY COST WILL NOT BE NEEDED NEXT YEAR. HERE IS A LOOK AT OUR STREETSCAPE MAINTENANCE BUDGET THAT WE WERE TALKING ABOUT THAT WE HAVE THE INCREASE IN HERE PRIMARILY IN UTILITIES FOR WATER AND ELECTRIC. WE NEED TO BOOST SOME OF THAT PARTICULARLY IN TERMS OF THE WATER. AND THEN IN THE CONTRACTED SERVICES OVERALL, A REDUCTION IN THE TREE REMOVAL EXPENSE THAT IS PARTIALLY OFFSET BY AN INCREASE TO THE TREAT -- STREETSCAPE MAINTENANCE CONTRACT TO MAINTAIN THE HIGH STANDARDS. ANYTHING ON PARKS AND REC

BEFORE WE MOVE FORWARD? >> I HAVE A QUESTION RELATED TO A GENTLEMAN THAT ASKED HIM OUT , SEVERAL TIMES, ASKED ABOUT WILDFLOWERS. I KNOW WE HAVE SOME SORT OF RELATIONSHIP WITH ONE OF THE NONPROFITS REGARDING THE WILDFLOWERS. IT IS A VERY SMALL BUDGET ITEM HERE. CAN YOU ELABORATE ON THAT SO I CAN

EXPLAIN IT TO THIS PERSON? >> WE CAN EXPLAIN IN MORE DETAIL BUT THIS IS JUST AN INCREASE TO THE WILDFLOWER PROGRAM. ALTOGETHER IT IS $40,000 . IT IS BIGGER PROGRAM.

THIS IS A SMALL INCREASE. IS THIS A PREDOMINANTLY IN THE POWER LINE EASEMENT? HOW DO YOU SELECT THE AREAS WHERE WE PUT

THESE? >> IT IS PART OF THE STREETSCAPE PROGRAM. YOU WILL SEE WITH THE SIZE OF THE ROADS, IT IS NOT UNDER THE PATHWAY. THIS WOULD BE THE POWER LINE EASEMENT. THAT IS A SEPARATE PROGRAM THAT IS MORE OF A WILDFLOWER PROGRAM. KAREN AND ANGELS TEAM COORDINATE. YOU WILL SEE A VARIETY OF WILDFLOWERS FROM FEBRUARY THROUGH THE APRIL TIME PERIODS ON OUR LARGER ROADS AND EVEN INTO THE COLLECTOR ROADS AS WELL. WE HAVE SEEN THE PRICE OF C GO UP AND THIS IS WHY THE REQUEST FOR THE ADDITIONAL

$1500. >> WE ARE NOT EXPANDING THE

AREAS? >> WE DON'T HAVE ANY NEW ROADS TO EXPAND. THAT IS WHAT THIS PROGRAM, HISTORICALLY, HAS BEEN FOR PROBABLY ABOUT 40 YEARS OF ADDING WILDFLOWER SEED TO THE

SIDES OF THE RIGHT AWAY. >> IS IN EVERY ROAD THAT? ARE WE SCATTERING SEEDS IN EVERY ROAD IN THE WOODLANDS?

>> PROBABLY ABOUT HALF OF THE TOWNWIDE AND COLLECTOR ROADS THAT DO HAVE IT. THERE ARE LARGER AREAS -- FOR EXAMPLE, IF YOU LOOK AT THE MEETING IN THE TOWN CENTER AREA FROM WOODLANDS PARKWAY TO FOREST ON THE MILL . THERE IS LARGER MEDIAN, THAT IS WHERE THEY ARE. A LOT OF SUNLIGHT GETS IN THERE AND HE CAN PROBABLY GET THOSE ON THE SIDES OF THE ROADS. I KNOW BRIDGE CROSSING HAS A NUMBER OF WILDFLOWERS AMONG WOODLANDS PARKWAY. IS IT EVERY ROAD? NO. IN AREAS WHERE WE CAN GET A LARGER MACHINERY TO SOW THE SEEDS IN, THEN YES.

>> IS SOMEBODY WANTS TO CALL THEY CALL YOU AND THEY SAY WE WANT WILDFLOWERS, THEY CAN CALL YOU .

>> RIGHT NOW WE HAVE A MAP WITH ALL THE WILDFLOWERS INCLUDING BLUEBONNETS THAT HAS BEEN OUR STANDARD FOR A NUMBER OF YEARS

[01:10:07]

>> ARE THE QUESTION FOR DR. NOONS?

>> I WILL TALK ABOUT ABOUT MAINTENANCE. I WANT TO UNDERSTAND WHERE THAT MAINTENANCE LINE ITEMS ARE. IS THIS THE BUDGET THAT WILL MAKE SURE THAT OUR WHOLE ENTIRE

COMMUNITY LOOKS IMMACULATE? >> WITH IN THAT $10.6 MILLION JUST FOR THE STREETSCAPE , THAT IS NOT THE TOWN CENTER. WHICH YOU HAVE EXPRESSED CONCERNS ABOUT AS WELL. THIS IS JUST THE RIGHT OF WAY MOWING. IN INCLUSIVE INTO THIS POT IS A FORESTRY MAINTENANCE. THAT WAS MOVED OVER A COUPLE YEARS AGO FROM PARK OPERATIONS SIDE TO THE STREETSCAPE PROGRAM. THE TREES WE ARE RESPONSIBLE OUR ALONG THE ROAD RIGHT OF WAY.

>> IN THE BUDGET INITIATIVE, WHICH WE WILL GET TO. THERE ARE NUMBER OF INITIATIVES ADDRESSING THE CONCERNS THAT SEVERAL BOARD MEMBERS HAVE EXPRESSED.

>> WE TALKED ABOUT THAT IT IS COMING.

>> WE CAN BRING MORE DETAIL BUT IN STREETSCAPE THE CONTRACTED PARKING PATHWAY MAINTENANCE IS GOING UP BY 10%. WE ARE TRYING TO DO IT WHERE IT MAKES SENSE IN TERMS OF CONTRACTING. WE ARE INCREASING THE BUDGET TO DO THAT. AS CHAIRMAN SNYDER JUST SAID WE HAVE EXPENSES WITH MAINTENANCE. WE THINK WOULD BE BETTER PERFORMED BY STAFF. WE ARE GOING TO PRESENT THAT AS A BUDGET INITIATIVE . WE WILL MOVE ONTO THE FIRE DEPARTMENT.

THE TOTAL BUDGET IS $34.4 MILLION. WHICH IS ABOUT AT $2 MILLION OR 6.1% INCREASE. THE FIRE DEPARTMENT EXPENSES ARE PRIMARILY , IN TERMS OF OPERATIONS , RELATED TO STAFFING COSTS. YOU SEE THAT THE COST THERE AND WE TALK ABOUT THAT A LITTLE MORE IN A MINUTE. IN TERMS OF OUR LAW ENFORCEMENT EXPENSES, IT IS GOING UP ONLY ABOUT $200,000 OR 1.3%. THE REASON IT DOES NOT LOOK LIKE IT IS GOING UP VERY MUCH IS BUSY -- YOU WILL RECALL LAST YEAR THE BOARD INVESTED $44 MILLION ADDITIONAL MONEY INTO CONTRACTED BOND ENFORCEMENT WITH ABOUT A 26 OR 27% INCREASE . INCLUDED IN THAT WAS A BUNCH OF ONE-TIME CAPITAL. VEHICLES AND EQUIPMENT. TO THE EXTENT WE DO NOT NEED TO REPEAT THAT EXPENSE IN 2025 OF THE VEHICLES AND EQUIPMENT, THAT IS WHY YOU SEE THE DECREASE HERE. OVERALL, IN TERMS OF LAW ENFORCEMENT THE SHERIFF'S OFFICE , WE HAVE BUDGETED AN INCREASE OF 4%. A TOTAL OF $448,000. PARIS COUNTY CONSTABLE AN INCREASE OF OR .9 . THESE ARE NUMBERS PROVIDE TO US BY THESE AGENCIES BASED ON WHAT THEY ARE ANTICIPATING THEIR BUDGET PROCESSES.

PRECINCT THREE ABOUT A 5.5% INCREASE. AND THE ONE DOWN THERE AT THE BOTTOM IS WHAT I JUST MENTIONED THAT A LOWER NUMBER OF REPLACEMENT IN VEHICLES IN 2025 COMPARED TO '24. OUR COMMUNITY SERVICES IS COMPRISED OF THESE THREE COMPONENTS, STREAMLINING, COVENANT ADMINISTRATION DEPARTMENT ARE SOLID WASTE SERVICES. THE INCREASE IS PRIMARILY RELATED TO THE SOLID WASTE CONTRACT. WE HAVE BUDGET OF 5.1% INCREASE BASED ON THEIR CONTRACT TERMS. THAT IS $440,000 PER AND THEN ADMIN INCLUDES TWO NEW STAFF POSITIONS THAT IS WHAT IS DRIVING A LOT OF THAT INCREASE THERE. WE WILL TALK ABOUT THOSE POSITIONS IN JUST A MINUTE.

GENERAL GOVERNMENT, I MENTIONED EARLIER, IS MADE UP A BUNCH OF DIFFERENT DEPARTMENTS BUT IT INCLUDES BOARD OF DIRECTORS, TOWNSHIP SECRETARY DEPARTMENT, LEGAL , FACILITIES, THE PRESIDENT'S OFFICE, HUMAN RESOURCES, NON-DEPARTMENTAL , A VARIETY OF THINGS. OUR PROPERTY AND LIABILITY INSURANCE IS IN THERE. AND THEN FINANCE AND I.T. THOSE ARE ALL THE DIFFERENT COMPONENTS OF THE GENERAL GOVERNMENT. WHERE DID THE BIGGEST INCREASE COME FROM?

>> WE WILL GO OVER THAT IN JUST A SECOND. LOOKING AT GENERAL GOVERNMENT, HERE IS WHERE THE INCREASE OUR. IS PRIMARILY RELATED TO STAFFING. WE DO HAVE TWO DIFFERENT POSITIONS THAT ARE INCLUDED IN THAT STAFFING. CONTRACTED SERVICES FOR I.T.

AND COMPUTER SUPPORT IN OUR PROPERTY TAX ADMIN FEE. WHICH IS WHAT WE PAY TO MONTGOMERY CENTRAL APPRAISAL DISTRICTS. I

[01:15:02]

WAS -- >> THAT IS PRESUMED TO HAVE THIS BOARD VOTED IN FAVOR OF WE DID THE COMP REVIEW?

>> THIS IS IN LINE WITH THE COMPENSATION PHILOSOPHY. WE WILL GO OVER THAT IN JUST A SECOND. IT IS STAYING WITH IN THE AVERAGE OF THE MARKET WHICH IS WHAT THE BOARD APPROVED.

THAT IS WHY WE PROPOSE THAT NUMBER. MOVING ONTO TRANSPORTATION EXPENSES, OUR PARK AND RIDE IS OUR LARGEST INCREASE THERE. THAT IS JUST A FUNCTION OF THE CONTRACT IN TERMS OF -- SORRY, THIS IS THE TOTAL. PARK-AND-RIDE IS OUR LARGEST TRANSPORTATION PROGRAM FOLLOWED BY TROLLEYS. HERE IS A LOOK OF OUR EXPENSES. THE CONTRACTED SERVICES IS GOING UP BY $747,000 FOR THE DIFFERENT TYPES OF PROGRAMS THAT YOU SEE LISTED THERE. ANY QUESTIONS ON EXPENSES?

>> DO YOU NEED A BREAK OR ARE YOU GOING TO?

>> I AM GOOD. PERSONNEL. WE ARE PROPOSING A 4% GENERAL WAGE INCREASE. AGAIN, AS DIRECTOR WATSON WAS JUST MENTIONING THIS IS IN LINE WITH THE MARKET, THE AVERAGE OF THE MARKET THAT WE HAVE TRACK SO FAR. NOT ALL OF OUR PEERS HAVE PUBLICLY STATED WHAT THEIRS IS GOING TO BE. TO THE EXTENT TO THE ONES WE HAVE TRACK SO FAR, THIS IS WHERE IT IS. THE OTHER THING WE HAVE FACTORED IN HERE IS LAST YEAR BECAUSE WE WERE IMPLEMENTING A LARGE AMOUNT OF SALARY ADJUSTMENTS BECAUSE OF THE COMPENSATION PLAN , WE DID NOT GO WITH THAT MARKET ADJUSTMENT LAST YEAR WHILE WE MADE UP FOR THOSE OTHER ONES. WE WENT WITH 3.5%. MOST OF OUR PEER COMMITTEES WERE A WHOLE PERCENTAGE HIGHER THAN THAT WE DO NOT WANT TO GET TOO FAR BEHIND WHERE THEY WERE. IN ORDER TO KEEP UP WITH SELLER AND MAINTAIN THE COMPENSATION, ALL OF THOSE FACTORED INTO THE 4% INCREASE. HEALTH INSURANCE, WE ARE EXPECTING TO GO UP BY ABOUT 7.1% OR $570,000 FOR THE NATIONAL TREND IS EXPECTED TO BE 7.5%. WE WOULD LIKE TO COMMEND ANGELA. ANGELA BRANCH, OUR HR DIRECTOR HAS DONE A FANTASTIC JOB IN NEGOTIATING THE 7.1%. IT WAS MUCH HIGHER WHEN WE GOT THE FIRST PASS THROUGH. LIKE I JUST SAID, SHE HAS DONE A REMARKABLE JOB OF CONTINUING TO MANAGE THAT CONTRACT AND HAS GOTTEN IT DOWN TO 7.1 AND IS STILL NEGOTIATING ON SOME OF OUR SMALLER BENEFITS, LIKE OUR LONG-TERM DISABILITY, SHORT-TERM AND ALL OF THAT. WE ARE HOPEFUL THAT WE CAN DECREASE THE BUDGET A LITTLE MORE. KUDOS TO HER. SHE IS A GREAT JOB IN MANAGING THINGS. WORKERS COMPENSATION IS A HUGE INCREASE. $83,000 AND THAT IS JUST BASED ON OUR EXPERIENCE. OVERALL, HERE IS A LOOK AT OUR PERSONAL COST WITH THE FIRE DEPARTMENT. OUR CURRENT EMPLOYEES , THE PAYROLL OR THE SALARIES AND BENEFITS IS ABOUT $30 MILLION. THAT IS AN INCREASE -- WE ARE PROJECTING AN INCREASE ABOUT $1.5 MILLION OR 5.5% FOR CURRENT EMPLOYEES.

THA IS BASED ON THE WAR PERCENT WAGE INCREASE PLUS SOME STEP INCREASES THAT ARE BUILT INTO THEIR PROGRAM THAT WERE APPROVED BY THE BOARD LAST YEAR . THEY ARE REQUESTING THREE NEW POSITIONS, WHICH YOU WILL TALK ABOUT IN A SECOND. AND THAT IS WHERE YOU SEE THE $312,000. IN TERMS OF OUR GENERAL EMPLOYEES, NON-FIRE DEPARTMENT EMPLOYEES, THAT TOTAL COMPENSATION PACKAGE ABOUT $32.7 MILLION AND REPRESENTS A $1.6 MILLION INCREASE WITH SALARIES AND BENEFITS 5.3%. THE NEW STAFF REQUIRED ABOUT $898,000 AND WE WILL TALK ABOUT THOSE. HERE ARE OUR NEW STAFF REQUESTS. WE ARE REQUSTING AN ADDITIONAL RECREATION SPECIALIST FOR THE RECREATION DEPARTMENT TO KEEP UP WITH THE DEMAND FOR THE TOWNSHIP'S BERRIES RECREATION PROGRAMS. AS I MENTIONED PREVIOUSLY, 100% OF RECREATION COST ARE ALL RECREATION REVENUES. THE NET IMPACT ON THIS POSITION WILL BE ZERO. EARLIER THIS YEAR, THE BOARD RECEIVED A REPORT FROM RUTH ANN ON THE RESULTS OF HER ROUTE

[01:20:02]

>> QUESTION ABOUT THIS. WITH THE SHOPPING CENTER OPENING UP WITHIN THE NEXT YEAR, WILL WE BE ABLE TO HAVE A TROLLEY GOING

OVER THERE? >> WE WILL TALK ABOUT THAT AS A

BUDGET INITIATIVE. >> THANK YOU. I HAVE A QUESTION. HELP ME UNDERSTAND -- AND I KNOW YOU HAVE WORKED TIRELESSLY TO LIMIT THE REQUEST. AND APPRECIATE THAT.

AT ONE POINT WITH HEALTH INSURANCE GOING UP AND WORKERS COMP GOING UP, WITH PAY INCREASE AT 4% EVERY YEAR , IT HAPPENS. AT WHAT POINT DO YOU LOOK AT OUTSOURCING SOME OF THESE CONSULTANTS VERSUS HIRING FULL-TIME STAFF?

>> THAT IS ALWAYS A PROCESS WE GO THROUGH. EACH YEAR DURING THE BUDGET PROCESS AND AS WE HAVE POSITIONS THAT OPEN, WE ALWAYS LOOK AT THAT. IN TERMS OF THE TOWNSHIP, WE ARE A VERY CUSTOMER SERVICE DRIVEN ORGANIZATION , AS MOST LOCAL GOVERNMENTS ARE PAIRED WE OFFER A HIGHER LEVEL OF SERVICE THAN MOST. THAT DOES REQUIRE OUR OWN STAFF COMPARED TO CONTRACTED SERVICES IN A LOT OF CASES, NOT ALL CASES. WE DO HAVE SOME MAJOR, MAJOR CONTRACTS IN THE PARKS AND RECREATION DEPARTMENT AND LAW ENFORCEMENT -- THOSE TYPES OF THINGS. OFTEN IN OUR CONTRACTED SERVICES, WE GO THROUGH THAT ANALYSIS. WHAT WOULD IT COST? NOT ONLY THE COST ANALYSIS BUT THE SERVICE LEVEL TOO. EMILY MAKES THOSE TOGETHER. IT IS SOMETHING THAT WE LOOK AT. THE CONTRACTED SERVICES, AS MUCH AS THE SALARIES AND BENEFITS GO UP, CONTRACTED SERVICES ARE GOING UP THAT MUCH AT MORE . THEY HAVE TO PAY THEIR STAFF , PLUS THEIR EQUIPMENT, PLUS THEIR OVERHEAD AND MANAGEMENT TEAM.

IT IS AN EXERCISE WE GO THROUGH AND I UNDERSTAND. SALARIES AND BENEFITS IS BY FAR OUR LARGEST COST, WHICH IS CONTRACTED SERVICE AND IT IS ALMOST NECK AND NECK . THEY MAKE UP ABOUT 80% OF OUR TOTAL BUDGET. I GET YOUR POINT AND IT IS SOMETHING

WE LOOK AT. >> I DO NOT KNOW THAT IS SOMETHING THAT WE LOOK AT WITH SALES TAX NOTCOMING IN AS HIGH AS WE HAD HOPED. YOU ALWAYS HAVE CAPS ON PROPERTY TAXES. IF WE JUST LOOK AT SOME OF THOSE THINGS BECAUSE ADDING MORE AND MORE STAFF SEEMS LIKE IT IS COSTLY. I AM NOT SAYING EVERY SINGLE POSITION YOU CAN PICK AND CHOOSE WITH SOME I KNOW MY REAL JOB, WE OUTSOURCE A LOT IN OUR COMMUNICATION AREA TO USE CONSULTANTS AND THEN WE HAVE ARE WORKER BEES IMPLEMENTING A

LOT OF THAT. >> WE DO A COMBINATION IN

ALMOST EVERY DEPARTMENT. >> THE OTHER IS TO CONSIDER AND REMEMBER AS THE TOWN RESPONSIBILITIES HAVE GROWN AND THERE WERE SEVERAL YEARS THAT WE DID NOT HIRE ADDITIONAL STAFF , LOOKING TO SEE WHAT THE FUTURE WILL HOLD , THIS IS SOMETHING -- I THINK, THE NUMBER OF REQUEST WAS MUCH HIGHER THAN WHAT IS BEING PRESENTED. EXCELLENT QUESTION, BRAD. ALWAYS SOMETHING TO CONSIDER AND LOOK INTO.

>> THIS IS FOR OUR GENERAL EMPLOYEES. WHAT OUR REQUESTS ARE FOR THESE POSITIONS. I WILL GO THROUGH THESE ONE BY ONE TO LET YOU KNOW WHAT THE REASONS ARE. THE PERCHING ANALYST IN THE FINANCE DEPARTMENT. WE HAVE NOT HAD AN INCREASE IN OUR PROCUREMENT DEPARTMENT SINCE 2010. WE HAVE SQUEEZED EVERY OUNCE OF WORK. WE HAVE USED EVERY BIT OF TECHNOLOGY.

EVERYTHING THAT WE CAN TO MAKE THIS DEPARTMENT WORK IN ORDER TO CONTINUE TO FOLLOW PROCUREMENT REQUIREMENTS AND MAKE SURE WE GET THE BEST VALUE, WE REALLY DO NEED THIS POSITION. SENIOR HELP DESK ANALYST IN THE TECHNOLOGY DEPARTMENT WE TRACK HOW MUCH TIME IT TAKES OUR HELP DESK STAFF TO RESPOND TO SERVICE REQUESTS FOR THE EMPLOYEES.

WHENEVER THERE IS A HARDWARE OR SOFTWARE PROGRAM PROBLEM, WE TRY TO KEEP THAT UNDER 24 HOURS. WE HAVE SEEN THAT NUMBER STARTING TO CREEP UP CLOSER TO THE TWO DAY CATEGORY, 40 HOUR

[01:25:02]

WE DO NEED THIS NEW POSITION. >> THE FOUR POSITIONS, SENIOR PARK TECHNICIAN AND THE PARKS TECHNICIAN ADDING TO THOSE AS WELL AS THE CONTRACT MAINTENANCE REVIEW SPECIALIST AND COVETED ADMINISTRATION HAVING ADDITIONS ALL ADDRESS SOME OF THE NEEDS THAT WE HAD CONCERNED ABOUT REGARDING MAINTENANCE ? WOULD THAT BE FAIR?

>> WHAT THESE ARE NEEDED FOR OUR JUST TO MAINTAIN OUR CURRENT LEVEL OF SERVICE. WE HAVE NOT HAVE THE PARKS AND RECREATION DEPARTMENT HAD ZERO INCREASES IN STAFF LAST YEAR AND ONLY TWO THE YEAR BEFORE. THERE HAS BEEN OTHER PRIORITIES FOR THE BOARD. UNDERSTANDABLE, VERY IMPORTANT PRIORITIES IN TERMS OF LOWERING THE TAX RATE TO THE NEW NEW REVENUE RATE.

PUBLIC SAFETY , IN TERMS OF OUR CONTRACTED LAW ENFORCEMENT BUT OUR FIRE DEPARTMENT PUTTING A SECOND COMPANY ON ALL OF THOSE WERE PRIORITIZED. PARKS AND RECREATION CONTINUED TO GROW MORE ASSETS BUT THEY WERE NOT GIVEN ANY ADDITIONAL RESOURCES.

>> I THINK THIS IS EXCITING FOR US AND WHAT WE HAVE BEEN LOOKING FOR CHRIS NEEDS A HELP FOR SURE OVER THERE AND JOHN .

>> HE DOES A FANTASTIC JOB, THE WHOLE TEAM. THIS IS JUST IN ORDER TO KEEP DOING WHAT WE ARE DOING.

>> AND RAZOR HOPEFULLY TO THE NEXT LEVEL . WE WILL DO A BUDGET INITIATIVE TO PROVIDE ENHANCED SERVICES. TO DIRECTOR BAILEY'S POINT, WE DID LOOK AT THESE IN TERMS OF CONTRACTED SERVICES OR BRING THEM IN-HOUSE. FOR INSTANCE, TWO PEOPLE OF THIS REQUEST IS ACTUALLY BRINGING STAFF IN-HOUSE FOR SOME OF THE TURF MAINTENANCE AS CONTINUING TO CONTRACTED. WE ARE NOT HAPPY WITH THEIR SERVICES AND WE CAN DO IT CHEAPER. WE WENT THROUGH THE WHOLE ANALYSIS AND WE CAN DO IT CHEAPER OR BRING IT IN-HOUSE AND GET BETTER SERVICE THAN WE CAN BY CONTRACTING IT OUT. THAT IS PART OF THE

EXERCISE THAT WE GO THROUGH. >> WE ASKED THESE QUESTIONS IN OUR COMMITTEE AS WELL. DIRECTOR BAILEY, JUST SO YOU KNOW.

>> THE SENIOR COMMUNICATIONS SPECIALIST , THIS IS BEEN IN THE FIVE YEAR PLAN FOR A WHILE NOW. AS YOU KNOW WE CONTINUE TO ASK OUR COMMUNICATIONS DEPARTMENT TO PROVIDE ADDITIONAL SERVICES AND A DIFFERENT MEANS OF COMMUNICATION. THEY HAVE DONE A FANTASTIC JOB DOING THAT. THEY DO REQUIRE -- WE DO REQUIRE ANOTHER POSITION TO BE ABLE TO CONTINUE THAT LEVEL OF SERVICE FINALLY, THE APPLICATION COORDINATOR, THERE IS TWO BEING REQUESTED IN THE ADMIN DEPARTMENT. COVENANTS HAS NOT HAD A STAFF INCREASE IN THE PAST SIX YEARS. THEY HAVE DONE VERY WELL WITH WHAT THEY HAVE.

THEY HAVE EFFECTIVELY USED TECHNOLOGY IN ORDER TO BE ABLE TO NOT ASK FOR ADDITIONAL STAFF. WE ARE AT THAT POINT IN TIME WHERE THINGS ARE BOTTLENECKING. THAT IS THE REQUEST FOR THOSE TWO POSITIONS. ANY QUESTIONS THERE? IN THE FIRE DEPARTMENT THERE IS THREE NEW POSITIONS BEING REQUESTED ONE LIEUTENANT OF LOGISTICS. THIS REALLY HAS TO DO -- MOST FIRE DEPARTMENTS HAVE THIS TYPE OF POSITION.

THIS POSITION MANAGES ALL OF THE DIFFERENT EQUIPMENT, THE LICENSING, THE RENEWAL, THE PERMITTING THAT GOES ON WITH THAT , THE UNIFORMS AND ALL THE SAFETY EQUIPMENT. WE HAVE MILLIONS OF DOLLARS INVESTED IN THAT. THIS IS TO MAKE SURE WE KEEP UP WITH THOSE TIMELY . THIS IS LONG BEEN IN THE BUDGET. IT WAS DEFERRED LAST YEAR WHILE WE PRIORITIZE OTHER THINGS BUT WE DO THINK THIS IS A PRIORITY THIS YEAR. IN ORDER TO MAKE SURE THAT WE ARE PROVIDING THE HIGHEST LEVEL OF SERVICE WITH OUR DISPATCH SERVICES, WE ARE REQUESTING TWO PUBLIC SAFETY AND TELE-COMMUNICATORS. ANY

QUESTIONS? >> ARE USED TO GOOD?

>> I COULD USE A BREAK. >> WE WILL RECESS. IT I

[01:30:03]

>>> THE BOARD WILL RECONVENE IT IS 10:15. PRESIDENT SHARP

>> THANK YOU. MOVING ON. IN ADDITION TO THE GENERAL FUND, WE HAVE TWO SEPARATE FUNDS ONE FOR VISIT THE WOODLANDS AND TRANSPORTATION FUND . WE WILL GO OVER THOSE COMPONENTS OF THE BUDGET NOW. WITH VISIT THE WOODLANDS, I GET QUESTIONS FROM TIME TO TIME ON HOW VISIT THE WOODLANDS EXPENSES FUNDED ? THIS SHOWS THOSE VARIOUS COMPONENTS. WHAT YOU SEE IN BLUE ARE THE EXPENSES THAT ARE FUNDED BY THE 2% SUPPLEMENTAL HOTEL TAX. AND 2% WAS IN ACTED SPECIFICALLY TO COVER THE COST OF VISIT THE WOODLANDS. BY LAW, ONLY 75% OF THE 2% HAS TO BE ALLOCATED TO VISIT THE WOODLANDS. WE HAVE ALWAYS ALLOCATED 100% BUT THE GREEN SHOWS THE EXPENSES THAT ARE FUNDED BY THE 7% BASE HOTEL TAX. THAT IS WHAT IS NEEDED FROM THE BASE HOTEL TAX IN ORDER TO COVER THE REST OF THEIR EXPENDITURES. AS WE SAW AT AN EARLIER SLIDE, EVEN WITH DOING THAT, WE ARE STILL SITTING ABOUT $3.5 MILLION TO A RESERVE. THERE IS MORE THAN ENOUGH REVENUE TO ACCOMPLISH THIS. HERE IS A BOOK BETWEEN 24 AND 25 AT OPERATING REVENUE.

SUPPLEMENTAL HOTEL TAX SPENDS MOST OF THE VISIT THE WOODLANDS BUDGET. ABOUT 60% COMES FROM MATT AT $2.3 MILLION. AND THE BASE HOTEL TAX AT ABOUT 41% OR $1.6 MILLION. HERE'S A LOOK AT OPERATING EXPENDITURES BETWEEN '24 AND '25. SHOWING THAT THERE IS AN INCREASE , RELATIVELY SMALL INCREASE BETWEEN THE TWO YEARS OF 89,000 OR 2.3% TOTAL BUDGET AT 3.9.

THIS IS THE VISIT THE WOODLANDS FUND BALANCE. WE DO SEE A DECREASE OF THE FUND BALANCE OVER THE YEARS LIKES TO TALK ABOUT BUDGET FLEXIBILITY THERE ARE OPPORTUNITIES THAT COME UP DURING A YEAR WHEN THAT HAS HAPPENED VISIT THE WOODLANDS HAS USED THEIR FUND BALANCE TO PAY FOR IT IN THAT PARTICULAR YEAR. THAT IS WHAT YOU ARE SEEING HERE. ONE OF THESE YEARS INCLUDED THE HOLIDAY DECORATIONS THAT THEY PURCHASED. THIS PAST YEAR, THERE WAS ADVERTISING EVENT EXPENSES THAT WERE COVERED BY THE FUND BALANCE.

>> WAS THIS HOLIDAY DECORATIONS THAT WERE AROUND THE ICE-SKATING RINK OR THE ONES THE BOARD APPROVED ALONG THE

WATERWAY? >> THESE ARE THE ONES AT THE

ICE-SKATING RINK. >> THANK YOU.

>> YOU ARE WELCOME. MOVING ONTO THE TRANSPORTATION FUND. AS WE TALKED ABOUT EARLIER OUR POCK -- PARK-AND-RIDE IS THE LARGEST PROGRAM YOU CAN SEE THAT ON THE RIGHT-HAND CHART, PARK AND RIDE USE OF THAT 80% OF RESOURCES AND THEN TROLLEYS AT $1.5 MILLION AT ABOUT 17%. IT IS LARGELY ALMOST COMPLETELY FUNDED , 80% IS FUNDED THROUGH GRANT REVENUES AND BUS FARE .

YOU CAN SEE THE DIFFERENT COMPONENT THERE. WE DO HAVE GENERAL FUND TRANSFERS ABOUT $1.5 MILLION OR 19%. THAT IS BECAUSE ALMOST ANY TYPE OF FEDERAL PROGRAM EITHER HAS TO BE A LOCAL MATCH . SOME OF OUR PROGRAMS GET MATCHED AT 80%.

SOME ARE 50%, SOME ARE 32. IT JUST DEPENDS ON THE TYPE OF PROGRAM. TO THE EXTENT WE HAVE TO FUND OUR SHARE, THAT IS WHAT

IS SHOWN THERE >> IS THE GRANT ONGOING? IS AN

EXPIRATION DATE? >> THEY DO BECOME AVAILABLE EVERY YEAR. WE HAVE TO DRAW DOWN ON THEM. AND THEN FIVE YEARS , WITHIN FIVE YEARS. ONE OF THE THINGS THAT WE SAW HAPPEN IN THE '24 BUDGET AND HAS COMPLETELY REFLECTED IN THE '25 BUDGET THIS IS SOMETHING WE TALK ABOUT DURING THE BUDGET PROCESS. THE TOWNSHIP DID RECEIVE $8.9 MILLION TO BE UTILIZED OVER FIVE YEARS AND C.A.R.E.S. ACT AND ARPA FUNDING RELATED BACK TO COVID. WE HAVE BEEN USING THOSE FUNDS THAT COULD BE IN PLACE OF OUR SHARE I JUST TALKED ABOUT OF THE TOWNSHIP FUNDS. WE WERE ABLE TO USE C.A.R.E.S. ACT AND ARPA FUNDING TO COVER THOSE PROPOSED DID EXPIRE AND WE USED ALL OF THOSE UP IN MARCH OR APRIL OF THIS YEAR. WE ARE NOW AT THE

[01:35:04]

>> AND I SAY ONE THING? I WANT TO THANK THE TRANSPORTATION DEPARTMENT. I'VE BEEN WORKING HAND-IN-HAND WITH VISIT THE WOODLANDS OF ALL OUR BUSES. HOW MANY BADGES DO HAVE AGAIN ? 25 BUSES THAT TRAVEL ALL OVER THE ENTIRE REGION. I DRIVE BEHIND THEM A LOT ON MY WAY TO WORK. AT THE END OF THE MONTH WE HAVE WRAPS ON THE BACK OF THEM HIGHLIGHTING VISIT THE WOODLANDS . IT IS A GREAT MARKETING OPPORTUNITY AND COULD HAVE BEEN DONE WITHOUT COLLABORATION OF THE TWO DEPARTMENTS. IT WILL BE EXCITING TO SEE COME SEPTEMBER

1. >> VERY PROFESSIONAL LOOK.

>> CANNOT WAIT TO SEE. >> NOW WE WILL MOVE INTO OUR CAPITAL PROJECTS. A LITTLE WHILE AGO , TOWARDS THE BEGINNING OF THIS PRESENTATION I COMPLEMENTED KEVIN ON WHAT A GREAT JOB SHE IS DOING IN TERMS OF INVESTING OUR FUNDS AND GETTING THE RATES HIGH. BECAUSE OF THAT, WE ARE PROCEEDING BY A LARGE AMOUNT THE AMOUNT OF INCOME COMING INTO OUR CAPITAL REPLACEMENT RESERVE. WE WERE ABLE TO TAKE ADVANTAGE OF THAT THIS YEAR BUT OTHER THAN TWO PROJECTS, WHICH HAVE A GRANT COMPONENT TO THEM ARE ABLE TO FUND ALL OF THE CAPITAL PROJECTS OF OUR RESERVE THIS YEAR. AGAIN, INSTEAD OF USING GENERAL FUND MONEY FOR SALE TAX MONEY, WE CAN UTILIZE OUR RESERVES IN A VERY EFFICIENT WAY. LARGELY BECAUSE OF THE ADDITIONAL INVESTMENT INCOME COMING IN. THAT IS A GOOD, GOOD THING. HERE YOU CAN SEE OUR TOTAL CAPITAL PROJECT BUDGET IS $15.1 MILLION. PRIMARILY, PROX -- PARKS AND RECREATION. IN YOUR BINDERS AND I'M HAPPY TO GO TO THE BINDERS ONLY GO THROUGH PROJECT BY PROJECT IF ANYONE WISHES OR I CAN MEET WITH YOU AFTERWARDS, HOWEVER YOU WOULD LIKE THERE IS GREAT DETAIL ON EVERY SINGLE ONE OF THE PROJECTS THAT ARE INCLUDED HERE. THE OVERWHELMING MAJORITY OF THEM ARE REPLACEMENT PROJECTS. THERE ARE PROJECTS TO REPLACE EXISTING CAPITAL AND AMENITIES AS THEY HAVE REACHED THE END OF THEIR USEFUL LIFE.

THAT IS THE BEAUTIFUL OF THE CAPITAL REPLACEMENT RESERVE THAT WE DO NOT HAVE TO BOND THAT WE DO NOT HAVE TO ISSUE BONDS IN ORDER TO DO THAT LIKE MOST LOCAL GOVERNMENTS. WE CAN UTILIZE OUR RESERVE. THE NEEDS ASSESSMENT PRODUCT THAT IS A PLACEHOLDER, WE HAVE THE SAME AMOUNT THROUGHOUT MOST OF THE FIVE-YEAR PLAN. I THINK WE HAVE GONE OVER THE 2022 NEEDS ASSESSMENT IN MEETINGS AND IN LAST YEAR'S BUDGET PROCESS.

THIS IS A PLACEHOLDER , AS THE INDIVIDUAL PARTS ARE DEVELOPED THEY COME BACK TO THIS BOARD FOR APPROVAL. THIS IS NOT AUTOMATIC YOU CAN SPEND $3 MILLION ON ANYTHING . ALL OF THESE COME BACK TO THE BOARD FOR APPROVAL.

>> ARBY'S ONGOING MAINTENANCE AND THINGS LIKE THAT? NOTHING

NEW? >> I DO NOT RECALL -- JOHN? I DO NOT RECALL ANY NEW PARKS AND HEAR? YET, THESE ARE ALL REPLACEMENTS. THESE ARE ALL LISTED IN YOUR BOOKS TO THE EXTENT THAT YOU HAVE ANY QUESTIONS , I WOULD BE GLAD TO DO THAT. WHAT WE ALSO HAVE INCLUDED THEM IN HERE ARE -- THE BOARD HAS PRIORITIZE GETTING OUR FACILITIES UNDER STANDARD AND BE ABLE TO HOUSE EMPLOYEES FOR THE NEXT FIVE TO 10 YEARS USING OUR EXISTING FACILITIES. PARTY STANDS FOR PARKS AND RECREATION DEPARTMENT ENVIRONMENTAL SERVICES. I WANT TO SAY PARTIES, THAT IS WHAT THAT STANDS FOR. WE HAVE ALLOCATED THAT AT THE LAST BOARD MEETING. WE DID TALK ABOUT THE CONSTRUCTION COMING BACK AT $4.3 MILLION. THAT IS COMPLETELY FUNDED IN THE '24 BUDGET. YOU CAN SEE THE

[01:40:06]

>> REMINDER THAT WE ARE DOING A RIBBON COMING ON THURSDAY?

>> YES. THURSDAY MORNING, THAT IS CORRECT

>> SOMEONE TOLD ME FIRE STATION FIVE WILL BE THE SIZE OF FIRE

STATION ONE. IS THAT TRUE? >> IT IS ABOUT THE SAME SIZE.

IT HOUSES TWO COMPANIES. THAT SECOND COMPANY WE ADDED A COUPLE YEARS AGO IS HOUSED THERE. IN THE HOSPITAL DISTRICT TOO WILL HAVE AN AMBULANCE OUT OF THEIR. IN TERMS OF THIS TOWN HALL CENTER, WE HAVE SOME EXPENSES BUDGETED THERE. AGAIN THESE ARE ALL REPLACEMENT ASSETS. NOTHING NEW HERE, JUST THE REPLACEMENT. ALSO FOR THIS BUILDING , THE BOARD HAS SET ASIDE FUNDS IN ORDER TO DO THE EXPANSION AND THE RENOVATIONS TO THIS FACILITY AT ABOUT $1.2 MILLION. AGAIN, FULLY FUNDED AT THIS POINT. OUR EXISTING OFFICE SPACE IS ALSO DUE FOR RENOVATION FOR PAINTING AND CARPETING. WE MOVED IN HERE IN 2011 . AND NOTHING HAS BEEN RENOVATED SINCE THEN. WE ARE AT 14 AND COMING UP ON 15 YEARS OLD AND THERE ARE THINGS THAT

NEED TO BE UPDATED >> DOES THAT INCLUDE UPDATING THE VISIT THE WOODLANDS AREA ?

>> THAT IS PART OF THE EXPANSION THAT IS GETTING READY TO START AND SHOULD START MID NEXT MONTH. TO ANSWER YOUR QUESTION, YES. THIS IS REPLACEMENT EQUIPMENT IN TERMS OF OUR HARDWARE. AND A LITTLE BIT OF SOFTWARE. AS IT REACHES THE END OF HIS LIFE TO REFRESH ALL OF THOSE, COMPLETELY FUNDED OUT OF THE RESERVE. THESE ARE THE TWO PROJECTS THAT WE ARE FUNDING BECAUSE THEY HAVE A FUND AND THEY HAVE A GRANT COMPONENT TO THEM. IT IS 171 BUT WE ANTICIPATE 90% OF THAT BEING COVERED BY A GRANT AND THEN THE PROGRAM, WHICH IS PUBLIC SAFETY ANSWERING POINT IS $50,000 AND THEN A 90% GRANT ATTACHED TO THAT. THE STORY IS ALMOST ALL OF THAT IS , OTHER THAN THE FACILITIES WE TALKED ABOUT, IS REPLACEMENT CAPITAL AND BEING FUNDED FROM THE CAPITAL RESERVE AS OPPOSED TO CURRENT YOUR TAX DOLLARS. I WILL GO INTO OUR DEBT PROFILE.

OVER THE LAST NINE YEARS. WE HAVE BEEN ABLE TO PAY OFF ABOUT $22.7 MILLION IN DEBT THAT RESULTED IN $6.8 MILLION SAVING IN INTEREST EXPENSE. WE HAVE REFINES $46.5 MILLION IN DEBT OVER THE PAST SEVEN YEARS WHEN THEY WERE AT HISTORICALLY LOW INTEREST RATE. THANK GOODNESS. WE ARE NOT ISSUING BONDS RIGHT NOW. THAT RESULT ABOUT $5.7 MILLION. ALL OF THAT HAS HELPED US ACHIEVE OUR BOND RATING OF A DOUBLE A PLUS BUT THAT IS THE HIGHEST BOND RATING HELD BY A SPECIAL-PURPOSE DISTRICT IN THE

STATE OF TEXAS. >> I WANT TO GO BACK TO THAT. I DON'T THINK WE RECOGNIZE HOW VALUABLE DOUBLE A PLUS BOND RATING IS AND HOW RARE IT IS FOR MUNICIPALITIES AND STATE AND GOVERNMENT OF ANY SIZE TO ACHIEVE . I WANT TO POINT OUT THAT THE UNITED STATES GOVERNMENT HAS BEEN THE GOLD

[01:45:01]

>> MAY JUST HAVE A LITTLE MORE DEBT THAN WE DO.

>> WELL SAID. WE ARE IN A WONDERFUL DEBT SITUATION. HERE IS A CHART THAT IS PREPARED BY THE UNITED STATES CENSUS BUREAU. THIS IS OUR INFORMATION. WE DO HAVE TO TURN IN INFORMATION EVERY YEAR TO VARIOUS AGENCIES REGARDING OUR DEBT, BOTH TEXAS AND FEDERAL. THIS IS THE TEXAS BOND REVIEW BOARD. THIS IS SHOWING WHAT OUR DIFFERENT PEER COMMUNITIES.

THEY CONSIDER THESE PEERS IN TERMS OF POPULATIONS , DEMOGRAPHICS , PROPERTY VALUES AND THOSE TYPES OF THINGS. WE

ARE, BY FAR -- >> THAT IS AMAZING.

>> IT IS RIGHT AT 201 SOMETHING.

>> WE CURRENTLY HAVE OUTSTANDING DEBT OF $20.7 MILLION . 5.4 OF THE CONVENTION CENTER. AND BACK WHEN WE BECAME ACCOUNT -- TOWNSHIP WITH ALL THE COMMITTEE ASSOCIATION PROFITS. THERE WERE BOND ISSUES FOR PARKS AND RECREATION AND OTHER DEPARTMENTS THAT REMAINS AT 15.3 MILLION. AND OUR TOTAL SERVICE IS $6 MILLION. THE PARKS AND REC AT THE FIRE DEPARTMENT BONDS ARE FUNDED BY ONE CENT PROPERTY TAX.

>> WHY DON'T WE GO AHEAD AND PAY OFF AND THERE IS A GOOD RATIONALE WHY WE HAVE NOT DONE THAT.

>> YOU CANNOT PAY OFF DEBT UNTIL IT BECOMES CALLABLE BECAUSE YOUR BONDHOLDERS ARE ENTITLED TO EARN THE INTEREST TO GET A RETURN ON THEIR INVESTMENT. AND ALSO ONCE YOU REFINANCE DEBT, THERE HAS TO BE A 10 YEAR WAITING PERIOD BEFORE YOU CAN REFINANCE IT AGAIN AND OUR DEBT WILL EXPIRE BEFORE THE 10 YEARS GET HERE. THERE IS NOTHING LEFT TO DO. WE HAVE ACHIEVED THE HIGHEST THAT WE CAN . OTHERWISE, IN PREVIOUS BOARDS, PAYING OFF DEBT OR REFINANCING IT WAS ALWAYS THE HIGHEST PRIORITY. THAT IS WHERE THE FIRST PART OF ANY SAVINGS WENT TO IN ORDER TO MAXIMIZE THAT. WE CANNOT DO THAT. WHICH IS WHY WE HAVE NOT DISCUSSED IT LATELY. LOOKING AT OUR OUTSTANDING DEBT BALANCES , WE HAVE PAID OFF -- THERE HAS BEEN 75% OR $62.2 MILLION REDUCTION IN DEBT. LOOKING FOR, ACCORDING TO OUR DEBT SCHEDULE , THIS IS HOW WE WILL BE PAYING IT OFF WE WILL BE COMPLETELY PAID OFF WITH OUR EXISTING BONDS. WE CAN SEE IT IS $6.0 MILLION. WE ARE DROPPING DOWN TO $3.1 MILLION ANNUAL DEBT SERVICES THAT IS THE NEXT BIG DECREASE YOU SEE WITH $2.4 MILLION. GREAT POSITION TO BE IN. ONCE WE TAKE ALL OF WHAT WE JUST TALKED ABOUT INTO CONSIDERATION, WHAT WE ARE LEFT WITH IS OUR RESERVES AND OUR FUND BALANCES.

IS WHAT WE ARE GOING TO TALK ABOUT NEXT. A LOT OF TIMES I KNOW WE HEAR AND YOU ALL HERE THAT YOU HAVE $107 MILLION YOU HAVE SO MUCH MONEY . AND WE CAN USE THAT FOR DIFFERENT THINGS INCLUDING LOWERING THE TAX RATE FURTHER. I'M GOING TO EXPLAIN WHAT ALL THESE DIFFERENT COMPONENTS ARE AND WHY THAT STATEMENT -- WHY THERE IS MORE TO THAT STATEMENT. THE LARGEST FUND THAT WE HAVE IS THE CAPITAL REPLACEMENT RESERVE AND WE HAVE TALKED ABOUT -- WE GOT FINISHED ABOUT HOW USEFUL THAT IS TO HAVE THAT MONEY. WE JUST LOOKED AT OUR DEBT SCHEDULE AND MOST LOCAL GOVERNMENTS ARE HAVING TO ISSUE BONDS EVERY THREE, FOUR, FIVE YEARS IN ORDER TO REPLACE ROUTINE CAPITAL. THERE PARKS AND RECREATION EQUIPMENT. AND WE DON'T BECAUSE WE UTILIZE THAT RESERVE. WE PUT IN ABOUT $4.2

[01:50:04]

THEY WILL BE TIME TO REPLACE THEM. THIS IS NOT FOR NEW PROJECT THIS IS A REPLACEMENT OF EXISTING PROJECTS. EVEN THOUGH THE BALANCE IS HIGH. AND IT IS HIGH , WE WILL BE BRINGING THAT DOWN OVER THE NEXT FIVE YEARS IN A VERY DELIBERATE PLAN WAY TO BE RIGHT AT WHERE THE RESERVE RECOMMENDS THAT WE BE AT THE $23.5 MILLION. IT IS HIGH NOW BUT IT WILL COME DOWN. WE ARE AWARE OF THAT AND HAVE PLAN FOR IT. OUR OPERATING RESERVE IS $32.4 MILLION. THE OPERATING RESERVE IS REQUIRED IN ORDER TO HAVE THE DOUBLE A PLUS RATING THAT WE JUST TALKED ABOUT. WE MAINTAIN OUR OPERATING RESERVE AT 25% OF THE GENERAL FUND EXPENSES. WHICH IS WHAT THE CREDIT AGENCIES LOOK FOR IN ORDER TO HAVE A AA TYPE RATING.

YOU CAN SEE THIS ONE IS AT 32.4 MILLION COMICS LOOMING -- ASSUMING OUR EXPENSES GROW, WE WILL HAVE TO IN '27 ARE INCREASING THAT MARGINAL EACH YEAR IN ORDER TO BE ABLE TO MAINTAIN THAT. THAT IS THREE, FOUR OR FIVE YEARS OUT. WE DO MAINTAIN AT THE 25%. OUR HOTEL TAX RESERVE IS AT $10.8 MILLION. WE WILL TALK ABOUT THAT IN JUST A MINUTE. THAT IS AN INTERESTING RESERVE. OUR PARK NEEDS ASSESSMENT RESERVE, $10.6 MILLION. WE TALKED ABOUT THAT A MINUTE AGO. WE HAD THAT MONEY SET ASIDE. YOU CAN GO SPEND $10.6 MILLION. WE UTILIZE THIS OVER THE NEXT 10 FIVE YEARS AND THEY ARE BROUGHT BACK

FOR APPROVAL. >> ARE THEIR LIST OF PROJECTS

THAT ARE LISTED ON THAT? >> AND HAVE IT HERE WITH ME BUT WE CAN GET YOU THAT.

>> THIS DANCE FOR THE COMPREHENSIVE COMMUNITY SERVICES AGREEMENT, AN AGREEMENT WE HAVE WITH THE DEVELOPER. WE HAVE A CONTRACTUAL OBLIGATION ON CERTAIN PROJECTS TO FUND IT ON 50/50%. THIS IS A LONG-STANDING PRACTICE SINCE THE BEGINNING OF TIME IN THIS COMMITTEE BACK TO THE COMMUNITY ASSOCIATION DAYS. DON'T GET ME WRONG, THE DEVELOPER HAS FUNDED MANY, MANY PROJECTS AT 100% JUST LIKE THE TOWNSHIP AND THE COMMITTEE ASSOCIATION BUT THERE ARE CERTAIN PROJECTS WHERE WE AGREED TO FUND A 50/50. THAT IS WHAT THIS $4 MILLION REPRESENT AND THE HOWARD HUGHES WOULD ALSO CONTRIBUTE $4 MILLION TO THESE PROJECTS. THOSE PROJECTS WILL BE BROUGHT BACK TO YOU FOR APPROVAL. THIS IS SET ASIDE IN A RESERVE. WE CANNOT SPEND IT UNTIL THE BOARD APPROVES THEIR

PROJECTS. >> THE DEBT SERVICES ARE REQUIRED BY BOMB COVENANT BRENT I'LL GO TO THESE QUICKLY.

CULTURAL EDUCATION WE TALK ABOUT THE EVENTS ADMISSION TAX.

THAT IS WHAT WE HAVE COMMUNICATED THAT ACCUMULATED FROM THE TOWNSHIP'S SHARE BUT IT CAN BE USED FOR CULTURAL ARTS PROGRAMS OR PROJECTS, SUCH AS A PERFORMING ARTS INTERPRET HEALTH INSURANCE AS REQUIRED BY THE ACTUARIES . I THINK WE HAVE TALKED ABOUT THE OTHERS. WHAT WE GET DOWN TO IS WHERE WE START OFF TODAY'S CONVERSATION , WHICH IS THE UNDESIGNATED FUND BALANCE. AROUND $900,000, WHAT THAT TELLS US WE ARE IN BALANCE. WITH EVERYTHING WE HAVE TALKED ABOUT TODAY , WITH ALL THE REVENUE SOURCES, ALL THE EXPENSES, THE NEW STAFF , EVERYTHING COMBINED INTO THE AIR, WE ARE AT A POINT RIGHT NOW THAT WE STILL HAVE $900,000 LEFT IN 2025 THAT THE BOARD CAN USE FOR BUDGETED INITIATIVES, WHICH HE WILL DISCUSS TOMORROW.

WE HAVE REMAINING IN 2024 IS ABOUT $3 MILLION. WE DID TALK ABOUT THAT DOWN ABOUT $500,000 TO $2.5 MILLION. BUT THOSE FUNDS CAN BE USED FOR OUR ONE-TIME CAPITAL PURCHASES.

THOSE CANNOT BE USED TO PAY DOWN THE TAX RATE . THEY CANNOT

[01:55:09]

>> THAT IS A SEPARATE RESERVE THAT WE HAVE SPECIFICALLY FOR THAT. I HAVE BEEN IN COMMUNICATIONS WITH JEFF YOUNG AT THE PAVILION AND JENNIFER AT THE THING. THEY HAVE A QUOTE BUT IT WILL BE SEVEN OR EIGHT MONTHS BEFORE THE NEW ELEVATOR

COMES IN. IT IS UNDERWAY. >> HOPEFULLY NOT FROM THE SAME PLACE THAT MARRIOTT ORDERED THE ESCALATOR. THAT THING HAS NOT

WORKED IN TWO YEARS. >> WE ARE ELECTED THIS, MAINTAINING OR OPERATING RESERVE THAT WE LOOKED AT THE CAPITAL REPLACEMENT RESERVE. THERE IS THE PLANNED USE OF OUR PARKS NEEDS ASSESSMENT I SAY IT IS PLANNED USE. WE HAVE SOME FACTOR IN THEIR ASSUMING WE SPEND ABOUT THE SAME AMOUNT EVERY YEAR. THIS IS SUBJECT TO BOARD APPROVAL. HERE'S A CULTURE EDUCATION RESERVE . THIS IS A TAX THAT GROWS ABOUT $200,000 A YEAR UNTIL WE DETERMINE A USE FOR IT. THIS IS THE HOTEL TAX RESERVE I WANTED TO TALK ABOUT. WE CURRENTLY HAVE A BALANCE OF ABOUT $10.8 MILLION. WHAT IS REPRESENTED IN BLUE IS THE EXCESS HOTEL TAX THAT IS GENERATED EVERY YEAR BY EXCESS. IT IS REVENUE THAT IS NOT NEEDED TO PAY OFF THE CONVENTION CENTER DEBT OR THAT IS NOT NEEDED BY VISIT THE WOODLANDS TO FUND OPERATIONS. YOU CAN SEE IN 2027 HOW IT GOES UP FROM $4 MILLION-$7 MILLION. THAT IS WHEN WE PAID OFF THE CONVENTION CENTER DEBT. AS A SPECIAL-PURPOSE DISTRICT, WE ARE UNRESTRICTED AND HOW AND WHAT WE CAN USE THE HOTEL TAX RESERVE FOR. IT IS UNIQUE TO US BEING A SPECIAL-PURPOSE DISTRICT. THIS PORT AND PREVIOUS BOARDS HAVE ALWAYS THOUGHT ABOUT THIS IN TERMS OF USING THIS FUND FOR TOURISM OR ECONOMIC DEVELOPMENT. WHAT WE HAVE DONE HERE IS WE ARE RESERVING THIS MONEY . IT IS ACCUMULATING IN A RESERVE THAT WE CAN USE FOR ECONOMIC DEVELOPMENT PURPOSES. IF WE GET TO SOMETHING LIKE A PERFORMING ARTS CENTER, THERE IS NOT ENOUGH CASH, OBVIOUSLY. WE WILL HAVE TO ISSUE BONDS. THAT IS SOMETHING THAT MAKES A LOT OF SENSE. SOMETHING ON A BIG CAPITAL PROJECT LIKE THAT. THAT PLAYS OUT IN TERMS OF ECONOMIC DEVELOPMENT. YOU HAVE TO BE ABLE TO SHOW IN ORDER TO HAVE A BOND ELECTION, YOU HAVE TO SHOW THE SECRETARY OF THE DATE THAT YOU HAVE THE FUNDS AVAILABLE TO PAY THE DEBT SERVICE. WE ARTY HAVE THAT AND THAT IS WHY WE ARE RESERVING AND INSTEAD OF STARTING TO USE IT FOR ONGOING OPERATIONS. WE RESERVE MONEY FOR THOSE SPECIAL OPPORTUNITIES. THIS IS WHAT GIVES US ALL THE FLEXIBILITY IN THE WORLD TO TAKE ADVANTAGE OF OPPORTUNITIES THAT MAKE IT UP IN THE FUTURE. WHETHER IT IS A PERFORMING ARTS CENTER OR OTHER OPPORTUNITY. YOU CAN SEE THAT GROWS TO A BIG AMOUNT . IF IT IS NOT UTILIZED FOR DEBT SERVICE OR ANOTHER PURPOSE BY THE END OF '29, IS THAT $33 MILLION. WHEN WE SEE THE FUND BALANCE INCREASING OVER TIME, IT IS BECAUSE OF THIS VERY THING . THIS IS WHAT IS DRIVING IT. I KNOW THERE'S VARIOUS PROJECTS AND IDEAS THAT ARE UNDER DISCUSSION THAT MAY END UP UTILIZING THIS. FINALLY, I HAVE TWO SIDES LEFT. WHEN THE BOARD ADOPTS THE BUDGET, THEY WILL ADOPT A '25 BUDGET YOU DO NOT ADOPT A FIVE-YEAR PLAN. WE ALWAYS LOOK LONGER THAN THE CURRENT YEAR. WE WANT TO MAKE SURE THAT THE DECISIONS THAT ARE BEING MADE TODAY ARE NOT

[02:00:05]

EVERY FIVE-YEAR PLAN -- EVERY BUDGET THAT HAS BEEN ADOPTED HAS HAD THIS SIMILAR THING. TO PUT THIS IN PERSPECTIVE, THE $986,000 IN 2026 REPRESENTS 1/2% OF OUR BUDGET. EVEN THE HIGHEST AT 2.4 IN 29 REPRESENTS 29 OF OUR TOTAL BUDGET. IT IS OKAY. WE WANT TO LOOK AT THIS AND WE WANT TO BE MINDFUL OF IT BUT IT IS OKAY BASED ON OUR VERY CONSERVATIVE ASSUMPTIONS THAT WE USED TO BE HAVE BALANCE OUT THERE. WE WANT TO BE MINDFUL WHEN WE MAKE DECISIONS IN 2025 THAT ANYTHING WE DO TO LOWER REVENUE OR INCREASE EXPENSES IS GOING TO IMPACT THESE OUTNUMBERS. WE WANT TO MAKE SURE THOSE DON'T GET SO BIG THAT WE FIGHT WE CANNOT MANAGE THEM. THAT IS IT.

>> AS ALWAYS, THANK YOU PRESIDENT SHARP. KNOW THAT YOU AND KELLAN'S TEAM DID AN AMAZING JOB WE ARE VERY, VERY GRATEFUL. FOR THE FIRST TIME IN A WELL, WE DID HAVE A BUDGET TASK FORCE SEVERAL YEARS AGO DURING COVID KNOW THAT DIRECTOR FRANK, DIRECTOR SEKULA-GIBBS AS WELL AS DIRECTOR HEISER SAT ON THAT. YOU HAVE ADDITIONAL COMMENTS OR QUESTIONS?

>> I THINK IT WAS PRESENTED VERY WELL AND VERY MUCH THE SAME PASSION FOR US. THERE WERE SOME THINGS WE GENERALLY THOUGHT WERE OF USE TO US. WE DID NOT AGREE ON ALL OF THEM.

OUR POSITION ALWAYS WAS THERE WOULD BE CONTRITION'S FROM OTHER BOARD MEMBERS THAT MAY QUESTION SOME OF OUR THOUGHTS.

I THINK IT WAS ALSO VERY GOOD TO BE IN THERE AND GET THE FIRST ROUND OF WHAT THIS WAS ABOUT, BLAH, BLAH, BLAH. AND WE COULD REFINE SOME OF THE ISSUES AND SOME OF THE QUESTIONS THAT WE HAD. HAVING GONE THROUGH THIS AND WENT THROUGH THE SAME EXERCISE. I THINK SINCE WE HAVE A COUPLE OF SESSIONS SCHEDULED , MY RECOMMENDATION WOULD BE THAT WE TAKE THIS INFORMATION WE HAVE TODAY SO THAT PEOPLE HAVE A CHANCE TO HONE IN ON THE QUESTIONS THEY WANT TO ASK. AND START THAT WHOLE SESSION IN TERMS OF DISCUSSIONS AND QUESTIONS, ET CETERA, ET CETERA, AT OUR MEETING TOMORROW NIGHT FOR THE INITIATIVES?

>> WERE YOU CALLING AT THE WISH LIST?

>> THEY ARE IN YOUR PACKET. I WOULD LIKE TO TALK ABOUT THEM.

>> OUR WISH LIST IS TO BRING THOSE UP

>> IT IS LIKE MY KID'S SANTA LIST.

>> I HAVE A LIST OF THEM HERE TODAY. JUST A SUMMARY LIST IF EVERYONE WANTS TO GET A PREVIEW OF THEM OR THE VERY LAST SECTION IN YOUR BINDERS, THERE IS 29 , 27 , 20 SOMETHING TABS BACK THERE AND HE GOES INTO LOTS OF DETAIL.

>> IN TERMS OF TIME , I THINK THAT THE BUDGET TASK FORCE PUSH THROUGH PRETTY DILIGENTLY AND MADE GOOD USE OF OUR TIME. I WOULD LIKE TO SUGGEST THAT WE DO THE SAME THING HERE BUT IF WE HAVE AN OPPORTUNITY TO PUSH ON , I WOULD LIKE TO DO THAT.

RATHER THAN RECESS AND COME BACK AND GET AS MUCH AS

[02:05:05]

POSSIBLE DONE TODAY. >> I CONCUR.

>> WE DO HAVE 30 MINUTES. DR. HEISER, ANY COMMENT ABOUT THE

BUDGET TASK FORCE? >> WE TRIED TO GO THROUGH THOSE TREES -- 28 INITIATIVES AND DISCUSS THEM IN GREAT DETAIL.

TRY TO COME TO SOME CONCLUSIONS BUT IT WILL BE GOOD TO HEAR EVERYONE'S OPINIONS ON THOSE.

>> THAT WILL THEN ALLOW US TO GO BACK TO AGENDA ITEM SEVEN

[7. Receive, consider and act upon the 2025 Preliminary Budget for The Woodlands Township; ]

>> IT DOES NOT MEAN YOU ARE ADOPTING THIS BUDGET BUT YOU CAN COME BACK AND ASK QUESTIONS WHEN JUST A REMINDER OF SEVERAL THINGS , THE VERY LAST MEETING THAT WE HAD A FOR THE BUDGET MEETING, WE WILL SET A PRELIMINARY RATE. AND THEN THE PROPOSED RATE WILL THEN BECOME THE MAXIMUM RATE THAT THE BOARD CAN CONSIDER ON THEIR MEETING THE FIRST WEEK OF SEPTEMBER.

>> THE BOARD CAN LOWER IT FROM THERE. THEY CANNOT RAISE IT.

YOU CANNOT CHANGE THE DEBT SERVICE RATING.

>> OKAY. >> IS THERE A MOTION TO RECEIVE CONSIDER AND ACCEPT PRELIMINARY BUDGET FOR THE WOODLANDS

TOWNSHIP? >> YES, MA'AM. I MOVED TO

ACCEPT. >> AND THE SECOND?

>> I WILL SECOND. >> ALL IN FAVOR SIGNIFY BY

SAYING AYE >> AYE

>> OPPOSED? MOTION PASSES. THAT BRINGS US TO AGENDA ITEM EIGHT

[8. Receive, consider and act upon Budget Initiatives related to the 2025 Preliminary Budget and Five-Year Plan;]

DID YOU PERHAPS HAVE A LIST OF ALL THE INITIATIVES? I KNOW WE DO NOT THINK WE WOULD MOVE SO QUICKLY OF ALL THE INITIATIVES

-- >> I DO BUT WE WILL NEED TO RECESS FOR ABOUT FIVE MINUTES.

>> IT IS 10:53. WE WILL RECESS AND TELL 12:05 .

[02:16:45]

>>> THAT BRINGS US TO AGENDA ITEM EIGHT TWO ACT UPON BUDGET

[02:16:50]

>> THANK YOU. WHAT I JUST HANDED OUT IS A WAY FOR YOU INDIVIDUALLY TO TRACK AS WE MAKE DECISIONS THAT WILL PROBABLY NOT HAPPEN UNTIL TOMORROW. THIS IS JUST HELPS US KEEP TRACK. OUR BUDGET DIRECTOR WILL ALSO BE TRACKING THIS ELECTRONICALLY SO YOU CAN KEEP US UP TO DATE ON WHERE WE ARE IN TERMS OF THE UNDESIGNATED BALANCES.

>> I WILL NOT GO OVER THESE SLIDES BECAUSE I THOUGHT THERE

WOULD BE A DAY. >> WE HAVE ANOTHER MEETING AT 11:30. THIS WILL GIVE US A CHANCE TO GET OUR HEAD ON IT.

YOU AGREE. WE MET NO PRESSURE ON YOU.

>> THE UNDESIGNATED FUND BALANCES ARE A REMINDER, IN TERMS OF WHAT WE CAN USE FOR A ONE TIME TIME PURCHASES THIS WOULD BE EXPENSES THAT WE THINK ARE GOING TO HAPPEN IN 2025.

THEY HAVE ABOUNDS ABOUT $2.5 MILLION. THE FIRST COLUMN SAYS THAT , ACTUALLY THE SECOND COLUMN OVER IS THE UNDESIGNATED FUND BALANCE . AND THEN WE TOOK THE $500,000 OUT OF IT THAT WE TALKED ABOUT THE SALES TAX ADJUSTMENT BUT WE ARE WORKING WITH A BALANCE OF 2.5. THE END IS A FUND BALANCE FOR 2025 IS AROUND 957,000 WE WILL TAKE 100 TO 150 OUT OF THAT THIS IS JUST A LIST. THIS IS LIKE A TABLE OF CONTENTS , IF YOU WILL OF ALL THE DIFFERENT BUDGET INITIATIVES. I WILL GO OVER THESE BRIEFLY. WHAT I DO RECOMMEND IS BASICALLY WHAT DIRECTOR WATSON JUST SAID. JUST TO GIVE YOU A FLAVOR OF WHAT IS COMING TOMORROW BUT WE WILL DISCUSS IN MORE DETAIL. EVEN TOMORROW WHEN WE GO THROUGH MY RECOMMENDATION IS WE GO THROUGH THEM ALL BEFORE WE START MAKING DECISIONS ON INDIVIDUAL ONES.

THERE IS SOME THINGS THAT I THINK YOU ARE GOING TO WANT TO SEE AND HEAR ABOUT ALL OF THEM BEFORE YOU MAKE DECISIONS ON

ANY SPECIFICS. >> WHEN WE GO THROUGH THIS, IF I LOOK AT THIS CHART CORRECTLY, THE REQUESTED AMOUNT IN GREEN , WE ARE NOT LIMITED TO JUST ONE CATEGORY OR COLUMN ON THE RIGHT IN TERMS OF WHERE THAT MONEY WOULD COME FROM. SOMETIMES THERE IS MULTIPLE OPTIONS. PERHAPS, WHEN WE DO IT THIS, SO WE CAN FOLLOW IT AND DO ROUGH MATH , YOU WILL US KNOW WHERE

IT IS AVAILABLE >> I WILL.

[02:20:04]

>> THANK YOU. >> SOME OF THE THINGS WE ARE GOING TO TALK ABOUT IN TERMS OF BUDGET INITIATIVES AND THESE WERE REQUESTED BY DIRECTORS, A FEW OF THESE ARE FROM STAFF SOME OF THESE ARE FROM RESIDENTS THIS IS FROM OUR CONTRACTED LAW ENFORCEMENT PERSONNEL. THERE IS A VARIETY

-- >> VILLAGE ASSOCIATIONS PER

>> VILLAGE ASSOCIATIONS HAVE SUBMITTED REQUEST. ONE OF THE FIRST THINGS WE LOOK AT IS LOWERING THE PROPERTY TAX RATE AS AN INITIATIVE. AGAIN, WE KNOW WE WENT IN WITH HER CURRENT RATE OF 0.1714 BUT WE GO INTO SINNERS OF WHAT THAT WOULD MEAN IF WE LOWER THE RATE AGAIN, WE WILL HAVE TO BALANCE THAT WITH LOWERING THE RATE WITH WHAT WE PROVIDE IN SERVICES. WE ARE GOING TO INTRODUCE THIS YEAR THE IMPLEMENTATION OF ADMINISTRATION FEES. JUST FOR VERY LIMITED SERVICES FOR THE SERVICES THAT ARE REQUIRING ADDITIONAL STAFF TIME BECAUSE IT PERMITS ARE REQUIRED.

INSPECTIONS ARE REQUIRED. IT IS SOMETHING THAT MOST -- NOT MOST, EVERY OTHER ONE OF OUR PEER CITIES IMPLEMENT THESE. WE ARE THE LONE WOLF IN TERMS OF NOT. WE DO THINK BECAUSE THESE ARE ENHANCED SERVICES THAT ARE PROVIDED THAT THE RESIDENTS USING THOSE SERVICES SHOULD PAY A FEE TOWARDS THEM. THAT IS WHAT THE ADMIN FEE IS ABOUT.

IS. THE ADMIN FEES. YOU CAN LOOK OVER THIS IN MORE DETAIL TOMORROW. WE ARE GOING TO LOOK IN TERMS OF PARKS, PERSONNEL AND EQUIPMENT TO ENHANCE SERVICE LEVELS. THE PARK ADDITIONS WE ASKED FOR TODAY RELATED TO WHAT WE NEED IN ORDER TO MAINTAIN OUR CURRENT SERVICE LEVELS . WE HAVE HAD A REQUEST FROM DIRECTORS AND RESIDENTS ABOUT THE LEVEL OF SERVICE THAT WE DO NOT CURRENTLY PROVIDE. THESE WOULD INCLUDE PAINTING BRIDGES ON A REGULAR BASIS. WE DO PAINT BRIDGES BUT ON A FIVE-YEAR CYCLE OR ON AN AS NEEDED CYCLE.

IN ORDER TO BE ABLE TO GET TO A MORE ROUTINE CYCLE . THAT IS JUST ONE EXAMPLE. WE WOULD NEED TO HAVE ADDITIONAL STAFF. WE HAVE ZERO CAPACITY TO DO THOSE TYPES OF MAINTENANCE PROJECTS CURRENT STAFF. WE WILL TALK ABOUT THE WATERWAY SQUARE FOUNTAIN. WE HAVE SEVERAL DIFFERENT OPTIONS FOR YOU TO CONSIDER. WE WANTED TO RESTORE IT TO ITS FORMER GLORY , WHERE IT WAS DOING PROGRAMMING WITH SHOWS, LIGHTS AND MUSIC THAT WILL COST UP TO $6.4 MILLION. THERE IS OPTIONS TO RESTORE TO A VERY, VERY NICE AND FUNCTIONAL FOUNTAIN WITH SOME LIGHT DISPLAY AND THINGS LIKE THAT AT A LOWER COST.

>> PHILIP FULL OF DIRT AND PLANT SOME FLOWERS? JUST KIDDING. WE MET THAT WAS ACTUALLY DISCUSSED I DON'T THINK THAT IS WHAT WE ARE GOING FORWARD WITH.

>> MAKE IT INTO A KOI POND. I THINK WE SHOULD MAKE IT A WISHING WELL AND YOU GO GET THE CHANGE OUT OF IT EVERY WEEK.

>> I KNOW YOU JUST GOT YOUR BOOKS ON FRIDAY. THAT IS A WHOLE BUNCH OF INFORMATION BUT YOU DO NOT HAVE TO LOOK AT ANY OTHER PART FOR TOMORROW. IF YOU HAVE A CHANCE TO LOOK ONE THROUGH 27 EIGHT TABS AT THE BACK , YOU WILL GET A LOT MORE.

I WILL WALK YOU THROUGH IT TOMORROW. THE WATERWAY BRIDGE TOWER IS THE BRICK ON THAT COLUMN OVER THE WATERWAY TOWER THAT HAS BEEN STAINED. IT WAS STAINED BADLY WHEN IT WAS DEEDED OVER TO US AND CONVEY TO US. WE HAVE SOME PLANS IN ORDER

TO BE ABLE TO REPAIR THAT. >>

>> THE BEAR SPORTS FIELD PARKING, YOU KNOW WE HAVE A TOURNAMENT AT BEAR SPORTS FIELD PARKING IS ON UP-AND-DOWN RESEARCH FORESTS. THIS IS ONE OF THINGS WE DISCUSSED EARLIER.

ABOUT EXPANDING THE PARKING UNDER THE POWER LINES. THERE IS INFORMATION THERE. WE WILL TALK ABOUT SHADE STRUCTURES , A PATH -- SEVERAL DIFFERENT PATHWAY CONNECTORS. THERE IS A RESIDENT REQUEST FOR OFFENSE REPLACEMENT WE ARE GOING TO LOOK AT REFORESTATION ALONG WITH CERTAIN COUNTY RIGHT AWAY. SOME SEASONAL PLANTING AT ENTRIES , THE SOUTH GOSLING PARK IS A PLACEHOLDER. WE WILL TALK ABOUT THESE. THESE WERE VETTED BY THE BUDGET TASK FORCE AND NOT ALL OF THESE RECOMMENDED GOING FORWARD BUT WE WANT TO PRESENT TO THE FULL BOARD AND GET YOUR INPUT. OF THE FIRE DEPARTMENT IS REQUESTING AN ADDITIONAL PERSON TO BE ABLE TO ENHANCE FIRE PREVENTION SERVICES.

MONTGOMERY COUNTY PRECINCT 3 HAS REQUESTED ADDITIONAL PERSONNEL AND VEHICLES. WE ARE REQUESTING A FULL FACILITY

[02:25:01]

MAY BE ABLE TO PROGRAM THOSE >> CAN WE GO BACK TO THE PARK AND RIDE. IS NOT A SUSTAINABLE NUMBER THAT WE HAVE TO ADD TO IT WHEN PEOPLE PAY TO RIDE IT?

>> IT IS PRETTY NOMINAL COMPARED TO THE HOLOCAUST. IT

IS NOT REVENUE NEUTRAL. >> TO RAISE THE PRICE, WOULD IT

MAKE SENSE TO OUR CONSTITUENTS? >> WE LOOK AT THAT. AND WE

RAISE THE PRICE . >> WE JUST DID AUTHORIZE -- THE BOARD JUST AUTHORIZED A PRICE INCREASE I THINK IT WAS LAST

MONTH. CAN YOU SPEAK TO THAT? >>

>> IT WAS IN JUNE THAT WE RAISED THE PRICE. IT NEVER MEETS THE FULL EXPENSE. IT IS STILL A VALUABLE SERVICE AND IT PROVIDES A LOT OF AIR-QUALITY CREDIT FOR THIS REGION TO KEEP US IN COMPLIANCE, BELIEVE IT OR NOT, WITH THE FEDERAL TRANSIT ADMINISTRATION. THEY LOOK AT THAT VERY CLOSELY.

>> AND NOW THE WHOLE WAY DOWN WILL BE HAVING BILLBOARDS ON

THE BACK >> EVEN BETTER.

>> RUTH ANN, DID THE INCREASE IN FEES AFFECT RIDERSHIP?

>> RUTH ANN, WOULD YOU COME UP TWO

>> IT IS OKAY. >> WE ARE TRYING TO MOVE ALONG.

>> TO SAY YES OR NO? >> NO .

>> THANK YOU. >> OKAY, THIS IS THE LAST PAGE, I THINK. WE TALK ABOUT REVIEWING OUR RESIDENTIAL STANDARDS . THE ALPHA AND OMEGA REQUESTED ADDITIONAL HOURS.

THERE IS A REQUEST FOR A SAFE HAVEN BABY BOX. WE WILL TALK ABOUT THAT PROGRAM. THE VILLAGE ASSOCIATION SUBMITTED VARIOUS REQUESTS. THAT IS THE LIST OF THE 28TH THAT THE BUDGET TASK FORCE WENT THROUGH IN A LOT OF DETAIL AND THAT WE WILL CONTINUE. I THINK IT STARTED NOW OR WE CAN JUST SAY WE COME

BACK TOMORROW. >> TO GIVE EACH ITEM , EACH INITIATIVE THE TIME THAT IT NEEDS AFTER OTHERS HAVE SPENT SO MUCH TIME, I WOULD LIKE A MOTION TO ACCEPT THE BUDGET INITIATIVE AS PRESENTED TODAY .

>> SO MOVED. >> SECOND.

>> IT HAS BEEN MOVED AND SECONDED. COMMENTS? IF NOT , ALL IN FAVOR SIGNIFY BY SAYING AYE

>> AYE. >> OPPOSE? MODES -- MOTION HAS

[11. Consideration of items to be placed on the agenda for next month's meeting;]

[12. Board announcements; and]

[02:30:02]

ANNOUNCEMENTS? >> I HAVE AN ANNOUNCEMENT. I WANT TO THANK DR. RAY A PHILLIPS FROM MD ANDERSON FOR WORKING WITH ME AS BOTH BOARD CERTIFIED DERMATOLOGIST. WE WERE ABLE TO PROVIDE A SKIN CANCER SCREENING FOR OUR FIREFIGHTERS LAST THURSDAY AT FIRE STATION SIX BUT WE SCREENED ABOUT 54 FIREFIGHTERS. IT WAS A GREAT -- IT IS ALWAYS REWARDING TO TAKE CARE OF PEOPLE ESPECIALLY FOLKS WHO SAVE OUR LIVES SHOULD WE NEED THEM. I APPRECIATE THE CHIEF WORKING SO HARD WITH ME OVER THE LAST SEVERAL YEARS TO FINALLY ACCOMPLISH THIS. THANKS TO THE FIREFIGHTERS TO WELCOMING US INTO THEIR STATION.

>> THANK YOU FOR LEADING THE CHARGE. OTHER ANNOUNCEMENTS? IF NOT, IS THERE A MOTION TO ADJOURN THE MEETING?

>> SO MOVED >> SECOND.

>> IT IS 11:16, MEETING ADJOURNED. SEE YOU IN THE

MORNING. ALL THOSE IN FAVOR -- >> AYE .

* This transcript was compiled from uncorrected Closed Captioning.