[Budget and Fiscal Affairs on April 26, 2022.]
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STAFF FROM COUNCIL POSITION AT LARGE, ONE AT LARGE, FOUR AND AT LARGE FIVE.
AND STAFF FROM COUNCIL DISTRICT C IF THERE ARE ANY MEMBERS OF THE PUBLIC WHO ARE HERE IN PERSON AND WOULD LIKE TO PARTICIPATE IN THE PUBLIC COMMENT.
THERE IS A SIGNUP SHEET IN THE FRONT TABLE TO YOUR RIGHT, TO MY LEFT.
AT THIS TIME, WE HAVE ONE PUBLIC SPEAKER.
UH, MY STAFF MEMBER CAROLINA WILL BE MONITORING THE PUBLIC SPEAKERS LIST.
THE FY 2023 BUDGET WORKSHOP HAS BEEN FINALIZED AND THERE IS A COPY OF THE SCHEDULE AT EACH COUNCIL MEMBER'S CHAIR.
ADDITIONALLY, THE BUDGET WORKSHOP SCHEDULE WILL BE POSTED ON THE BFA WEBSITE AT THE CONCLUSION OF THIS MEETING.
ALL B BUDGET MEETINGS, ALL BUDGET WORKSHOPS WILL BE IN PERSON.
AT THIS TIME, I'D LIKE TO WELCOME CONTROLLER CHRISTOPHER BROWN AND DIRECTOR TAN EMO TO PROVIDE THE MONTHLY FINANCIAL REPORT FOR A PERIOD ENDING MARCH 31ST, 2022.
I'D LIKE TO WELCOME COUNCIL MEMBER TIFFANY THOMAS FROM DISTRICT F, TIFFANY D. THOMAS.
UM, I'M PLEASED TO PRESENT THE MONTHLY FINANCIAL REPORT FOR THE PERIOD ENDING MARCH 31ST IN THE GENERAL FUND, THE CONTROLLER'S OFFICE IS PROJECTING AN ENDING FUND BALANCE OF 300 MILLION FOR FY 2022.
THIS IS 14.5 MILLION LOWER THAN THE PROJECTION, THE FINANCE DEPARTMENT.
IS THAT OKAY FOR YOU? I'M GOOD.
BASED ON OUR CURRENT PROJECTIONS, THE FUND BALANCE WILL BE 132.8 MILLION ABOVE THE CITY'S TARGET, UPHOLDING 7.5% IN RESERVES.
OUR REVENUE PROJECTIONS INCREASED BY 45 MILLION FROM THE FEBRUARY REPORT.
AND THIS IS, UH, FOR THE FOLLOWING REASONS.
SALES TAX INCREASED BY 33.7 MILLION, AND THAT WAS DUE TO LARGER THAN ANTICIPATED RECEIPTS.
OTHER FRANCHISE INCREASED BY 1.9 MILLION, AND THAT WAS DUE TO LARGER ANTICIPATED RECEIPTS FOR CABLE AND SOLID WASTE.
INTERGOVERNMENTAL INCREASED BY 2.1 MILLION.
CHARGES FOR SERVICE INCREASED BY 4.3 MILLION MUNICIPAL COURTS, FINES AND FORFEITS INCREASED BY 1.2 MILLION.
MISCELLANEOUS OTHER, UH, INCREASED 1 MILLION.
THE EXPENDITURE ESTIMATES INCREASED BY 3.8 MILLION AS FOLLOWS.
GENERAL GOVERNMENT INCREASED BY 5.6 MILLION.
DEBT SERVICE INCREASED BY 1 MILLION, AND THE DEDICATED DRAINAGE AND STREET RENEWAL FUND, A VALOREM TAX FUND DECREASED BY 899,000.
MOVING ON TO THE ENTERPRISE FUNDS, THE CONVENTION ENTERTAINMENT OPERATING TRANSFERS DECREASED BY 7.4 MILLION.
THE COMBINED UTILITY SYSTEM WATER SALES INCREASED BY 13 MILLION.
THAT WAS DUE TO INCREASE IN WATER USAGE.
INTEREST ON INVESTMENTS DECREASED 5 MILLION DUE TO LOWER INVESTMENT RETURNS AND THE DEDICATED DRAINAGE AND STREET RENEWAL AD VALOREM TAX TRANSFER IN SPECIAL REVENUE DECREASED BY 899,000.
SO WE ARE, UH, PROJECTING NO CHANGES FROM THE ADOPTED BUDGET IN THE AVIATION OPERATING FUND, THE STORMWATER FUND, THE DEDICATED DRAINAGE AND STREET RENEWAL FUND, OR THE DEDICATED DRAINAGE AND STREET RENEWAL METRO FUND THIS MONTH.
AND IF YOU LOOK AT THE COMMERCIAL PAPER AND BONDS, ALL OF THE VARIABLE RATE DEBT IS WELL BELOW THE 20% THRESHOLD.
SO, MR. CHAIRMAN, I'LL MOVE ON TO THE QUARTERLY INVESTMENT IN SWAP REPORT.
AS OF MARCH 31ST, THE CITY HAD $5.6 BILLION INVESTED IN OUR GENERAL INVESTMENT POOL.
UH, THE CHARACTER OF THIS POOL IS OUT OF A SHORT TERM BOND FUND THAT HOLDS INVESTMENTS OF VERY HIGH CREDIT QUALITY.
FITCH RECENTLY RATED OUR, UH, REVIEWED OUR POOL AND ASSIGNED THE HIGHEST RATING THAT OF AAA.
UH, INVESTMENTS ARE 368 MILLION HIGHER THAN LAST YEAR.
AND THIS IS DUE TO THE BOND PROCEEDS COMMERCIAL PAPER ISSUANCE AND INCREASE IN REVENUE FUND FROM AVIATION UPTOWN TOURS, RECEIPTS IN THE SPECIAL REVENUE FUND.
AND AS OF MARCH 31ST, THE GENERAL INVESTMENT POOL WAS YIELDING 0.772%, WHICH IS UP FROM 0.702% YIELD IN THE PRIOR QUARTER.
AND MOVING ON TO THE SWAP REPORT, ALONG WITH OUR INVESTMENT REPORT, WE INCLUDE, UH, THE QUARTERLY SWAP REPORT AS REQUIRED BY THE CITY SWAP POLICY.
THE CITY HAD POSITIVE RECEIPTS FOR NINE MONTHS AS OF MARCH 31ST, 2022 FROM ITS SWAPS OF 9 MILLION 886 8, I'M SORRY, $868,329.
THE FAIR VALUE FOR THE SWAPS AS OF MARCH 31ST WAS NEGATIVE 189 MILLION, WHICH
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IS APPROXIMATELY 33 MILLION LESS THAN THAT, UH, THAN LAST QUARTER.SO, MOVING IN THE RIGHT DIRECTION, BUT STILL A LARGE NEGATIVE FAIR VALUE.
THIS IS THE NINE PLUS THREE FINANCIAL REPORT FOR THE PERIOD ENDING MARCH 31ST, 2022.
THE FISCAL YEAR 2022 PROJECTIONS ARE BASED ON NINE MONTHS OF ACTUAL RESULTS AND ONLY THREE MONTHS OF PROJECTIONS ON THE GENERAL FUND.
OUR REVENUE PROJECTION IS 80.6 MILLION HIGHER THAN THE ADOPTED BUDGET AND 38.2 MILLION HIGHER THAN LAST MONTH'S REPORT.
THE VARIANCE FROM LAST MONTH'S REPORT, MAINLY DUE TO THE FOLLOWING, 34.7 MILLION INCREASE IN THE SALES TAX.
THIS IS DUE TO HIGHER THAN ANTICIPATED SALES TAX RECEIPT, 2.2 MILLION INCREASE IN THE INTERGOVERNMENTAL.
THIS IS TO REFLECT ELIGIBLE REIMBURSEMENT TO HEALTHCARE PROVIDERS UNDER THE CARES ACT PROVIDER RELIEF FUND ATTRIBUTABLE TO COVID-19 930,000 INCREASE IN THE INDIRECT INTER FUND SERVICES.
THIS IS DUE TO HIGHER THAN ANTICIPATED INDIRECT COST RECOVERY GRANTS 307,000 INCREASE IN MISCELLANEOUS.
THIS IS TO REFLECT PRIOR YEAR REVENUE ADJUSTMENTS.
FOR THE NETWORK NOTES, OUR EXPENDITURES PROJECTION IS 33.3 MILLION HIGHER THAN THE ADOPTED BUDGET AND 3.8 MILLION HIGHER THAN LAST MONTH'S REPORT.
THE VARIANCE FROM LAST MONTH'S PROJECTIONS IS MAINLY DUE TO THE FOLLOWING 5.6 MILLION INCREASE IN THE GENERAL GOVERNMENT.
THIS IS TO REFLECT PAYMENT RELATED TO THE LIMITED PURPOSE ANNEXATIONS.
AGAIN, THIS IS AS A RESULT OF THE HIGHER SALES TAX PROJECTIONS ALSO OFFSET BY THE METRO COMMUTER PASSES, SAVING 1.9 MILLION DECREASE IN THE DEBT SURFACE.
THIS IS DUE TO THE DEBT PAYOFF FOR THE PROJECT BA BRACE LOANS AS WELL AS LOWER CAPTURED REVENUE TRANSFER TO THE DEDICATED DRAINAGE AND STREET RENEWAL FUND, THE ATUM TAX FUNDS.
WITH THAT, WE ARE CURRENTLY PROJECTING AN ENDING FUND BALANCE OF 314.5 MILLION, WHICH IS 47.3 MILLION HIGHER THAN THE ADOPTED BUDGET AND 14.1% OF THE ESTIMATED EXPENDITURES, LESS DEBT SERVICE AND PSU GO.
THIS FUND BALANCE IS 147.3 MILLION ABOVE THE TARGETED 7.5% OF THE EXPENDITURES, LESS DEBT SERVICE AND PSU GO ON THE ENTERPRISE FUNDS PROJECTION.
OUR PROJECTION IS THE SAME AS THE CONTROLLER'S OFFICE, SO I'M NOT GONNA REPEAT THOSE.
ENTERPRISE FUNDS PROJECTION, I'M GONNA GO STRAIGHT TO THE SALES, UH, TO THE SPECIAL FUNDS AND OTHER FUNDS PROJECTIONS ON THE HOUSTON EMERGENCY CENTER SPECIAL FUND.
OUR EXPENDITURES DECREASED BY 586,000.
THIS IS MAINLY DUE TO THE PERSONNEL SAVINGS, MAINTENANCE RENEWAL, AND REPLACEMENT SPECIAL FUND REVENUES INCREASED BY 500,000.
THIS IS DUE TO THE GRANT AWARD RECEIVED FROM THE GREATER HOUSTON COMMUNITY FOUNDATIONS FOR THE NEIGHBORHOOD PARKS PROJECTS, SPECIAL WASTE TRANSPORTATIONS AND INSPECTION SPECIAL FUND.
THE EXPENDITURES DECREASED BY 356,000.
THIS IS MAINLY DUE TO PERSONNEL SAVINGS.
UM, AGAIN, THIS IS A MARCH REPORT, SO WE HAVE A, A UPDATE ON THE HOUSTON ECONOMY.
SO, YOU KNOW, YOU GET MORE DETAILS IN THE REPORT.
SO I'M GONNA JUST HIGHLIGHT REAL QUICK ON THE ENERGY SECTORS.
THE AVERAGE OIL PRICE OF $108.50 FOR THE MARCH, UH, FOR THE MARCH, UH, FOR THE MONTH OF MARCH OF 2022.
THIS IS 18.4% HIGHER THAN LAST MONTH'S AVERAGE PRICE OF $91.64 COMPARED TO THE SAME PERIOD OF LAST YEAR.
THIS PRICE HAS INCREASED BY 74.1% ON THE EMPLOYMENT SECTOR.
AGAIN, ACCORDING TO THE BUREAU OF LABOR STATISTIC, THE TOTAL NON-FARM EMPLOYMENT FOR THE HOUSTON WOODLAND SUGARLAND METROPOLITAN AREA, IT STOOD AT 3.1 MILLION IN FEBRUARY, 2022.
THIS IS UP APPRO APPROXIMATELY ABOUT 1% COMPARED TO PRIOR MONTHS.
HOWEVER, WHEN YOU COMPARE TO THE SAME PERIOD OF LAST YEAR, THIS IS INCREASED BY 6% ON THE HOME SALES CATEGORY.
THE LATEST REPORT PREPARED BY HOUSTON ASSOCIATIONS OF REALTORS FOR THE MONTH OF MARCH.
IT SHOWS A TOTAL SINGLE FAMILY HOMES SALES OF 9,693.
THIS IS ABOUT 4.1% HIGHER COMPARED TO LAST MONTH'S, UM, COMPARED TO MARCH OF LAST YEAR, UH, WHICH WAS 930, UH, 9,309.
WITH THAT, UM, I CONCLUDE MY REPORT.
EMO, BEFORE WE GET TO QUESTIONS FROM COUNCIL MEMBERS, I'D LIKE TO POINT OUT TO THE AUDIENCE AS WELL AS COUNCIL MEMBER, IS THAT, UH, EVERY TIME WE DO A BUDGET MEETING, WE RECEIVE A PROJECT STATUS REPORT FROM OUR IT DIRECTOR, MS. LISA KENT, REGARDING THE OPEN FINANCE TOOL.
AND EVERYONE SHOULD HAVE RECEIVED THEIRS, UH, THIS WEEK.
UM, WITHIN THAT REPORT, UH, THIS IS THE SOFTWARE PACKAGE THAT COUNCIL MEMBER MICHAEL KUBOSH KEEPS BRINGING UP EVERY MONTH TO CHECK ON WHERE WE ARE WITH THE, THE PROGRESS.
UH, WITHIN THE DOCUMENT, YOU'LL SEE THE MAJOR MILESTONES THAT WE HAVE, UH, THE IMPORTANT NEXT STEPS IN THIS JOURNEY, AND ALSO THE BUDGET BREAKDOWN AS TO, UH, THE ALLOCATION OF COST FOR THIS PARTICULAR, UH, PIECE OF SOFTWARE.
AND I THINK THE COMPLETION DATE IS STILL SCHEDULED FOR 2023.
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THANK YOU CHAIR.UM, I NOTICED THAT THERE'S SOME DISCREPANCIES BETWEEN THIS INFORMATION AND WHAT WE'RE VOTING ON ON WEDNESDAY FOR THE GENERAL APPROPRIATIONS ITEM.
CAN YOU TALK ABOUT THE DISCREPANCY BETWEEN THE TWO? I REALIZE THAT THIS REPORT IS AS OF MARCH 31ST, BUT CAN YOU JUST TALK A LITTLE BIT ABOUT THE DIFFERENCE THERE? SO, SO AGAIN, THE, UM, THE PURPOSE OF GENERAL APPROPRIATION IS MAKING SURE THAT AT THE END OF THE FISCAL YEAR THAT THE CITY WOULD HAVE ENOUGH APPROPRIATION DOLLAR TO CARRY FOR THE REMAINING OF, OF, YOU KNOW, FOR THE, UH, THE REMAINING OF THE MONTHS, UM, REMAINING OF THE YEARS.
UM, WHAT YOU SEE IN HERE IS AN ESTIMATE.
SO AT THIS POINT, WE ARE ESTIMATING THAT THIS IS WHAT WE ARE GONNA HAVE TO, UM, UH, WHAT THE EXPENDITURES OF THE GENERAL FUND WILL BE ENDING AND ALL OF THAT, AS WELL AS, AS WELL AS THE SPECIAL FUND AND ENTERPRISE FUNDS IN HERE.
UM, BUT AGAIN, ON THE GENERAL APPROPRIATION, ESSENTIALLY THOSE ARE THE APPROPRIATE DOLLARS THAT WILL BE DIFFERENT FROM THE ADOPTED BUDGET.
ESSENTIALLY, THEY WILL BE, WHAT YOU'RE GONNA BE VOTING TOMORROW IS GONNA BE WHAT THE CURRENT BUDGET IS GONNA LOOK LIKE.
UM, AGAIN, THE ESTIMATE IN HERE MAY INCLUDE SOME FOCUSING SAVINGS, BUT AGAIN, IF SOMETHING HAPPENED IN THE NEXT THREE MONTHS, WE WANNA MAKE SURE THAT WE HAVE ENOUGH MONEY TO DO THAT BECAUSE THAT WILL BE THE LAST, UM, UH, OPPORTUNITIES FOR US TO APPROPRIATE THE DOLLAR.
UM, SO THAT WILL BE A DIFFERENCE BETWEEN WHAT YOU SEE AS AN ESTIMATE AND WHAT THE APPROPRIATION, UM, THAT WE ARE RE REQUESTING FOR, UM, TOMORROW.
AND I WOULD JUST ADD AS A EXERCISE, EVERY YEAR WE GO THROUGH THIS WITH FINANCE, UH, CHARGE OF MY OFFICE AS CONTROLLERS TO CERTIFY THE AVAILABILITY OF FUNDS.
AND, YOU KNOW, WE DO SEE, LIKE WE'RE SEEING THIS YEAR, UH, QUITE A SUBSTANTIAL INCREASE IN SALES TAX REVENUE.
SO THERE ARE SOME, UM, ADJUSTMENTS THAT ARE MADE, AND WE WILL WORK WITH FINANCE TO ASSURE THAT WE DO HAVE THE MONEY AVAILABLE TO, UH, PASS THAT GENERAL APPROPRIATIONS ORDINANCE WITHIN OUR SPENDING CAPACITY.
COUNCIL MEMBER, TIFFANY D. THOMAS.
UM, DIRECTOR EMO, CAN YOU REPEAT A FEW NUMBERS FOR ME, PLEASE? YOU WERE SHOOTING 'EM OFF FAIRLY QUICKLY.
UM, CAN YOU GO BACK TO THE $2.2 MILLION AND THEN YOU NOTED A 900,000 AND THEN A 300,000 ON THE CHANGES ON THE GENERAL FUND? YES.
UM, SO I DO HAVE 2.2 MILLION INCREASE IN THE INTERGOVERNMENTAL.
THIS IS TO REFLECT THE ELIGIBLE REIMBURSEMENT TO HEALTHCARE PROVIDERS UNDER THE CARES ACT, UH, PROVIDER RELIEF FUND ATTRIBUTABLE TO COVID-19.
UM, SO WE HAD RECEIVED THIS REIMBURSEMENT BEFORE, SO THIS IS I THINK THE FOURTH TIME THAT WE ACTUALLY RECEIVED IT, UM, UNDER THIS PROGRAM, THE PROVIDER RELIEF FUND PROGRAMS. OH, AND THEN YOU ASK FOR NEXT ONE IS THE 930,000, CORRECT.
UH, THAT IS AN INCREASE IN THE INDIRECT INTER FUND.
THIS IS PRE, UH, RELATED TO THE INDIRECT COST RECOVERY GRANTS.
UM, SO THERE IS SOME ADMIN COST, UH, THAT WE, UM, CHARGE AS THE GRANTS AT.
SO THE MORE GRANTS YOU HAVE, ESSENTIALLY THE MORE, UM, ADMIN COSTS THAT YOU WOULD GENERATE 307,000.
THIS IS AN INCREASE IN MISCELLANEOUS.
THIS IS TO REFLECT THE PRIOR YEAR REVENUE ADJUSTMENT FOR THE NETWORK NODES.
WHAT ARE NETWORK NODES? SO I NEED TO GET MORE DETAIL.
THAT IS A REVENUE SOURCE THAT WE GET.
UH, I NEED TO GET MORE DETAILS ON THE TYPE OF REVENUES THAT WE RECEIVE ON THAT NETWORK NOTES.
THANK YOU STAFF FROM COUNCIL MEMBER MICHAEL KNOX'S OFFICE.
UM, WITH THE INCREASED INTEREST RATES, COULD YOU TALK ABOUT THE BUDGETARY IMPACT IT'S GOING TO HAVE ON THE CITY, IF ANY? WELL, IN GENERAL, WE ARE SEEING RATES RISE, UM, FOR THOSE OF YOU ALL THAT, UH, PAY ATTENTION, UH, TO THIS LIKE WE DO IN MY OFFICE.
UH, WE SHOULD SEE A PRETTY AGGRESSIVE INCREASE BY THE FEDERAL RESERVE THIS YEAR.
UM, MAY SEE A HALF DOZEN RATE INCREASES.
UM, THAT INCREASES OUR COST OF BORROWING.
SO THAT'LL BE AN INCREASE COST TO THE CITY, UH, FOR OUR DEBT SERVICE AND ALL THE, UH, DEBT THAT WE TAKE ON.
UM, AS I'VE SAID BEFORE, UM, WE ANTICIPATED, YOU KNOW, POST, UH, FINANCIAL CRISIS IN OH EIGHT WHEN RATES REALLY STARTED TO DROP THAT WE WERE GOING TO BE AGGRESSIVE ABOUT REFINANCING.
THERE ARE EXISTING DEBT AND WE'VE, UH, BEEN ABLE TO DO THAT OVER THE LAST, UH, 12, 13 YEARS, UH, QUITE, QUITE SUCCESSFULLY.
SO WE'VE SAVED NOW I THINK AROUND $600 MILLION IN, UH, PRESENT VALUE DEBT SERVICE PAYMENTS.
BUT WE WILL NO DOUBT, UM, SEE AN INCREASED EXPENSE AS THOSE RATES, UH, DO RISE IN THE FUTURE, IF I CAN COMMENT ON THAT.
SO, UM, I BELIEVE YOU SAW LAST YEAR, I THINK WE HAD DONE A LOT OF REFUNDING TO, TO TAKE ADVANTAGE OF THE LOWER INTEREST RATES.
SO I'M GLAD WE DID THAT, UH, LAST YEAR.
ANOTHER PART OF THAT SHOULD MAKE OUR SWAPS LOOK A LITTLE BIT BETTER IF THEY'RE SUCH A THING.
BUT A, A SWAP IS A HEDGE AGAINST RISING INTEREST RATES.
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WERE DONE IN 2204, I THINK.AND, UM, UH, THEY EXPIRE IN 2034.
I'VE ALWAYS BEEN A ANTI SWAP GUY.
BUT, UH, IN LIEU OF RISING INTEREST RATES, UH, WE MAY FINALLY SEE US.
I DON'T KNOW IF WE'LL SEE US COME OUT OF A NEGATIVE POSITION, BUT IT'LL BE A LITTLE BIT BETTER IN APRIL THAN MAYBE WE ARE IN MARCH.
BUT ANYWAY, UH, AS A CLARIFICATION, ITEM 14 TOMORROW ON THE CITY COUNCIL AGENDA IS THE, UM, APPROPRIATION, UH, THAT'S IN LIEU OF US NOT PASSING A BUDGET WHEN WE GO FORWARD.
SO, UH, WE MAKE THAT ITEM ON CITY COUNCIL EACH AND EVERY YEAR THAT WE DO IT.
UM, NO OTHER QUESTIONS FROM COUNCIL MEMBERS? YOU KNOW, I WAS LOOKING AT THIS THE OTHER DAY WHEN I GOT IT LAST WEEK, AND I DON'T KNOW, I THINK WE'RE GETTING A LITTLE BIT STALE IN THE BFA.
IT'S SORT OF LIKE THE SAME OLD SAME OLD THAT WE HAVE.
UH, THERE'S MY OPINION, NOT A LOT OF, UH, SURPRISES, BUT I DID START LOOKING AT ENTERPRISE FUND AND IN RELATIONSHIP TO THE AVIATION, AND THERE WAS NOT A LOT OF DETAIL IN THAT.
AND ONE THING WE ALWAYS DO, WE PAY A GREAT DEAL OF ATTENTION ON THE GENERAL FUND, BUT WE REALLY DON'T LOOK AT THE ENTERPRISE FUND.
AND THE ENTERPRISE FUND HAS AS MUCH OR MAYBE EVEN MORE MONEY, ESPECIALLY THE WORK THAT'S GOING ON AT THE AIRPORT.
ANYTHING THAT YOU SEE CONTROLLER OR OR DIRECTOR EMO.
AND WHEN WE PUT THIS REPORT TOGETHER EVERY MONTH ON AVIATION OPERATING FUND ENTERPRISE FUND, I KNOW THAT, UM, THERE'S A UPTICK IN THE REVENUE WE CREATED FROM, UH, WATER RATES.
AND, UH, PEOPLE, WE GET BILL CALLS EVERY MONTH ABOUT WHY IS MY WATER BILL SO HIGH? AND I JUST WANTED TO MAKE SURE THAT WE, YOU KNOW, WE HAVE THE ABILITY TO MATCH WHAT WE DID TO EXPENSES, AND IT SEEMS LIKE THE OPERATING REVENUE THAT WE'RE RECEIVING IS A LITTLE BIT HIGHER.
I'LL HAVE TO DIG INTO THE DETAIL, BUT ANY COMMENTS THAT, AS YOU SMART PEOPLE LOOK AT EACH AND EVERY MONTH ON AVIATION, UH, UH, ENTERPRISE FUND, IT RELATES TO, UH, CUS COMBINED UTILITY SYSTEM, ET CETERA? WELL, I THINK YOU'RE EXACTLY CORRECT IN THE SENSE THESE ARE VERY LARGE SYSTEMS. UM, YOU KNOW, LOTS OF DOLLARS, VERY COMPLEX.
UH, WHAT WE DO PRESENT EVERY MONTH IS AN ABBREVIATED UPDATE ON SOME OF THE MOVEMENTS OF, OF MONEY.
UM, BUT I THINK IT'S ALWAYS IMPORTANT TO LOOK AT THE BIG PICTURE.
I THINK YOU REFERENCED, UH, HAS AND YOU KNOW, SPECIFICALLY SOMETHING MY OFFICE HAS LOOKED AT AS THE I TRIPP, UH, REDEVELOPMENT PROGRAM.
UM, YOU KNOW, WE'RE CONTINUING TO LOOK AT THAT, UH, 'CAUSE COSTS ARE RISING AND AS, UH, MR. MOSS ALLUDED TO, UH, RATES ARE RISING.
SO, YOU KNOW, THERE ARE CHALLENGES IN THE FUTURE FOR ENTERPRISE FUNDS, UH, SPECIFICALLY ON THEIR CAPITAL IMPROVEMENT PLANS, UH, THAT THEY MAKE SURE THAT, UH, IN THAT RISING COST ENVIRONMENT, UH, THEY'RE GONNA HAVE THE CAPACITY, UH, TO BE ABLE TO ISSUE THAT DEBT OUT IN THE FUTURE.
IT'S NUMBER ONE, YOU KNOW, MANAGING THOSE PROJECTS EFFICIENTLY, CONTAINING COSTS AND THROUGH THE CONSTRUCTION PROJECT, UH, PROCESS, BUT OTHER FACTORS THAT YOU CAN'T CONTROL, LIKE RISING INTEREST RATES AND COST OF GOODS AND INFLATION.
SO, I MEAN, I THINK IT'S SOMETHING THAT IT'S SO DETAILED, IT WOULD WARRANT, YOU KNOW, UH, THE DIRECTORS COMING AND MAYBE GIVING QUARTERLY UPDATES OR SOMETHING LIKE THAT.
BUT, UH, WE'RE HAPPY AND I'M OPEN MY OFFICE, UH, TO WHATEVER SUGGESTIONS THIS BODY MIGHT HAVE TO INCLUDE.
SO, YEAH, SO WE ARE, WE, WE DO LOOK INTO THIS, UM, ENTERPRISE FUNDS EVERY SINGLE MONTH, RIGHT? SO WE WANNA MAKE SURE THAT THE OPERATIONS IS ALIGNED WITH THE, OF THE BIGGER PICTURES, RIGHT? SO YOU DO SEE A LOT OF THE INS AND OUTS, ESPECIALLY ON THE WATER AND SEWER, FOR EXAMPLE.
YOU GET THE CONSENT DECREE OUT THERE, YOU HAVE A LOT OF CIP PROJECTS AND YOU ACTUALLY SEE THE MOVEMENT ON THE, UM, THE TRANSFER OUT FOR THE CAPITAL PROJECTS.
SO YOU COULD ACTUALLY, UM, YOU KNOW, HAVE THOSE LINE UP, UM, THE SAME AS THE AIRPORT AT THE SAME TIME.
SO WE START LOOKING INTO INCREASES IN THE REVENUES AS THEY'RE, YOU KNOW, HAVING MORE PASSENGERS WITH THE, UM, YOU KNOW, MORE, MORE ACTIVITIES AT THE AIRPORTS.
WE ARE START LOOKING INTO THAT AS WELL.
UM, GOING INTO THE CIP PROJECTS IN THE AIRPORTS, I KNOW THEY HAVE A LOT OF PROJECTS ON THOSE TERMINALS DEVELOP DEVELOPMENTS, RIGHT? AND SO, UH, THEY HAVE BEEN VERY EFFICIENT, I HAVE TO SAY, IN PUSHING THOSE PROJECTS OUT TO AVOID A LOT OF THIS, UM, INCREASED COSTS.
SO YOU WILL SEE A LOT OF THOSE DISCUSSIONS, UM, AND, AND FURTHER ON WITH THEIR WORKSHOP AS WELL.
SO YOU PROBABLY WANT TO GET INTO THOSE DETAILS.
AND ANY SUGGESTIONS THAT ANYONE WOULD HAVE TO PUT A LITTLE BIT MORE VIBRANCY IN THESE MEETINGS, I SURE WOULD APPRECIATE IT.
I LOOK AT THE AVIATION OPERATING FUND, YOU HAVE FOUR, FOUR LINE ITEMS ON OPERATING REVENUE, REALLY FOUR LINE ITEMS THAT DOESN'T GIVE US MUCH DETAIL.
YOU BOTH WORK WITH EXTREMELY BRILLIANT PEOPLE
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IN YOUR DEPARTMENTS.AND WHEN WE HAVE FOUR LINE ITEMS FOR OPERATING REVENUE AND FOUR LINE ITEMS FOR OPERATING EXPENSE, IT REALLY DOESN'T GIVE US A LOT OF INSIGHT AND THERE'S A LOT OF ACTIVITY GOING ON OUT THERE, YOU KNOW, CONTROL, YOU MENTIONED I TRIPP, WE ALSO HAVE THE HAS DEVELOPMENT CORE AND SOME OF THE THINGS THAT WE DON'T GET INSIGHT INTO, UH, ON A PERIODIC BASIS.
AND I'M TRYING TO FIGURE OUT HOW CAN WE EDUCATE PEOPLE MORE ABOUT ONE HALF OF THE COST AND OPERATING WITHIN THE CITY OF HOUSTON, BECAUSE HALF OF IT IS GENERAL AND THE OTHER HALF IS ENTERPRISE.
AND WE REALLY DON'T GET INTO THE DETAIL OF THE ENTERPRISE.
AND, YOU KNOW, NOT TO SAY THAT WE SHOULD TAKE A REALLY DEEP DIVE INTO IT, BUT I THINK IF WE'RE GONNA DO FIDUCIARY RESPONSIBILITY TO OUR RESIDENTS AND MAKE SURE WE RESPECT THE TAXPAYER MONEY, WHILE I KNOW FAA IS A LOT LARGE CONTRIBUTOR FOR THE AIRPORT, UH, JUST EDUCATION ON WHAT'S INCLUDED IN THE ENTERPRISE FUND AND WHAT DO WE LOOK AT AND MAYBE SOME THINGS DIFFERENTLY.
BUT, YOU KNOW, I LOOK AT A FOUR ITEM REVENUE AND A FOUR ITEM EXPENSE THAT DOESN'T, THAT REALLY DOESN'T TELL ME MUCH.
UM, SO I'M JUST TRYING TO PUT A LITTLE BIT MORE ENERGY INTO THESE MEETINGS TO SEE EXACTLY WHAT WE CAN DO A LITTLE BIT DIFFERENTLY TOMORROW THAN WE'RE DOING TODAY.
SO, UH, IF, IF I COULD SUGGEST, YEAH, ABSOLUTELY.
UM, UH, IN THE PAST I'VE SEEN IF, IF YOU KNOW, BFA CHAIR, IF YOU HAVE ANY CERTAIN, UM, UH, DEEP DUCK THAT YOU WANT TO SEE, FOR EXAMPLE, THAT CAN BE ADDED.
AND SO THE DEPARTMENT DIRECTORS CAN PRESENT THOSE, UM, SPECIFIC, UM, UH, PROJECTS OR SPECIFIC, UM, ITEMS, TOPICS THAT YOU WANT TO GO OVER IN THIS BFA.
AND, AND I WOULD JUST ADD SOMETHING MY OFFICE HAS BEEN ADVOCATING NOW FOR FIVE YEARS IS THE CHECKBOOK OPEN FINANCE.
I MEAN, THIS GETS AT THE HEART OF THE MATTER BECAUSE, YOU KNOW, YOU'D BE ABLE TO SEE NOT MONTHLY FOUR ITEMS YOU'D BE ABLE TO SEE DAILY IN REAL TIME.
EVERY EXPENDITURE ROLLED UP BY CAPITAL IMPROVEMENT PROJECT X ROLLED UP BY OPERATING.
YOU KNOW, AGAIN, THESE ARE, UH, THE LEVEL OF FINANCIAL TRANSPARENCY THAT, YOU KNOW, EVERY OTHER CITY IN THE COUNTRY HAS EXCEPT FOR HOUSTON.
SO, UM, WE JUST ENCOURAGE, WE'RE AT ABOUT 20%.
FOR THOSE OF Y'ALL THAT LOOKED AT THE REPORT, IT'S BEEN SIX MONTHS.
I HOPE THAT BY, UH, FEBRUARY, MARCH OF NEXT YEAR, THE PROJECT WILL BE UP AND RUNNING.
UM, I DON'T HAVE A LOT OF CONFIDENCE IN THAT AT 20% IN SIX MONTHS, BUT THIS IS EXACTLY TO YOUR POINT, AND, AND IT WILL MAKE THESE, UH, DISCUSSIONS, UH, MORE ROBUST BECAUSE PEOPLE, NOT ONLY COUNCIL MEMBERS, NOT ONLY STAFF, BUT EVERY SINGLE CITIZEN OF HOUSTON WILL BE ABLE TO GO ONTO OUR WEBSITE AND SEE EXACTLY WHAT WE'RE SPENDING OUR MONEY ON IN REAL TIME.
SO THOSE THAT WILL GENERICALLY BRING MORE PEOPLE TO PUBLIC SESSION, THAT WILL, UH, HAVE MORE INQUIRIES FROM THE MEDIA, UH, THAT IN ITSELF WILL REALLY, UH, ELEVATE THE LEVEL OF DISCUSSION I BELIEVE IN THESE COMMITTEE MEETINGS.
YES, AND I, I GOT A NOTE FROM, UH, VICE MAYOR PRO TEM, MARTHA CASTEX TATUM, WHO HEADS UP THE ECONOMIC DEVELOPMENT.
SHE SAID THAT WITHIN THE CONFINES OF THEIR MEETING, MAYBE THEY CAN HAVE HAS REVIEW SOME OF THE, UH, FINANCIAL INFORMATION THAT THEY HAVE.
YOU KNOW, YOU LOOK AT THE REVENUE FOR THE CITY OF HOUSTON, WE'RE NINE MONTHS INTO A 12 MONTH CYCLE, YET WE'RE ON, WE'RE 6% AWAY FROM OUR PROJECTED REVENUE FOR 12 MONTHS.
I THINK IT WAS $130 MILLION OVER THE 7.5.
SO AS WE GO INTO BUDGET SEASON, WHAT DO WE DO WITH THAT $130 MILLION? DO WE SAVE IT FOR NEXT YEAR? DO WE PUT, KEEP PUTTING IT IN THE RAINY DAY FUND? AND IT SEEMS LIKE EVERY YEAR WE HAVE THIS SAME DIALOGUE, AND THAT IS, WE ALWAYS PRESENT GLOOM AND DOOM, BUT AT THE END OF THE FISCAL YEAR, PEOPLE OBJECT TO ME CALLING IT A SURPLUS, BUT WE ALWAYS HAVE SOME MONEY THAT WE HAVEN'T USED AND HADN'T BEEN ALLOCATED.
SO WHAT CAN WE DO? I BELIEVE TAXPAYERS WANT US TO USE THEIR TAX DOLLARS AND NOT PUT IT IN A SAVINGS ACCOUNT.
YEAH, YOU HAVE TO BE, UH, RESPONSIBLE FROM A FIDUCIARY STANDPOINT, BUT WHAT CAN YOU DO MOVING FORWARD? UH, I'M JUST TRYING TO LOOK AT SOME IDEAS AND MAYBE PUT A, AS WE GO INTO THE NEXT, YOU KNOW, YEAR AND A HALF FOR MANY OF US TRYING TO PUT A LITTLE BIT MORE MEAT INTO WHAT WE LOOK AT FROM A BUDGET STANDPOINT AND GET INTO SOME OF THE THINGS THAT WE GENERALLY DON'T GET INTO, UH, CONTROL.
I MET WITH YOUR STAFF LAST WEEK TO TALK ABOUT THE AUDIT PROCESS AND UM, YOU KNOW, I WAS STRUGGLING WITH, OKAY, WHAT DO WE DO AGAIN THIS YEAR? YOU KNOW, MAYBE MORPHING SOMETHING LIKE THAT.
I KNOW IT'S LIMITED STAFF THAT YOU HAVE AND, AND TIMES ARE CHALLENGING, BUT OUTSIDE FORENSIC TYPE AUDIT SITUATIONS, YOU, YOU GUYS DO THE, THE, UM, THE NORMAL AUDIT OF EVERY DEPARTMENT THAT LOOKS AT, UM, SEGREGATION OF DUTIES AND THINGS LIKE THAT.
BUT WHAT ABOUT FROM A FORENSIC STANDPOINT? WHAT ABOUT, YOU KNOW, THE THING THAT COULD REALLY JUMP UP AND BITE US
[00:25:01]
IN THE REAR, AND THAT IS IF THERE'S A MANY THING GOING ON THAT WE LOOK AT THAT'S A LITTLE BIT DIFFERENTLY, YOU CAN'T TURN ON THE TV STATION ON ONE OF THE LOCAL CHANNELS WHERE THE INVESTIGATIVE REPORT DOESN'T HAVE A REPORT ON THE AIRPORT.AND WHEN PEOPLE ASK ME QUESTIONS ABOUT IT, UH, I'M SORT OF NAIVE A LITTLE BIT AND UNEDUCATED TO THE SECOND POINT IN TRYING TO ANSWER SOME OF THEIR QUESTIONS AND CONCERNS.
SO, UM, I INVITE EVERYONE TO GIVE FEEDBACK.
HOW CAN WE PUT A LITTLE BIT MORE MEAT INTO THIS? HOW CAN WE MAKE IT A LITTLE BIT MORE ENERGIZED? CONTROLLER, YOU HAVE THE SAME TERM.
AND, UH, LET'S, LET'S LOOK AT MAYBE SOME DIFFERENT THINGS THAT WE CAN LOOK AT.
I'M OPEN TO IDEAS AND COMMENTS AND SUGGESTIONS.
WELL, I JUST WANTED TO, UH, CLARIFY, ARE YOU SAYING YOU WANT SOME FIRE AT THIS COMMITTEE? YOU KNOW, I LIKE TO PLAY WITH FIRE, SO, YOU KNOW, WHAT DO YOU WANNA DO? MAYOR PRO TEM, UH, CHIEF PENAS HERE.
SO IF WE DO HAVE A FIRE, WE'LL MAKE SURE THAT WE HAVE THE GOOD.
I THINK YOU RAISE REALLY GOOD POINTS.
THE GREATEST FIRE CHIEF IN THE UNITED STATES, UH, ABILITY.
BUT I, I THINK YOU RAISE REALLY GOOD POINTS ABOUT, UM, YOU KNOW, JUST, UM, HAVING A SUBSTANTIAL UNDERSTANDING OF ALL OF OUR ACCOUNTS, RIGHT? AND, AND NOT EVEN IT'S SIMILAR TOTS, RIGHT? AND, YOU KNOW, UM, MY FAVORITE DISTRICT F RESIDENT, DOUG SMITH, UM, RAISES THIS AT THE HOUSING COMMITTEE OFTEN, BUT JUST HAVING A, A MASTERY OF THE PROCESSES AND THE FUNDS THAT WE HAVE WITHIN THE CITY, I THINK IT'S A FAIR AND REASONABLE ASK TO BE ABLE TO HAVE THAT INFORMATION PRESENTED AT THIS COMMITTEE LEVEL.
I AGREE, WHEN YOU LOOK AT WHAT WE DO, WE, WE RUN A $10 BILLION ENTERPRISE, $10 BILLION ENTERPRISE, AND, UH, WE HAVE LINE OF SIGHT INTO FIVE OF THE 10.
WE DON'T HAVE A GREAT DEAL OF INSIGHT INTO THE OTHER FIVE, BUT, UM, MAYBE WE CAN CHANGE THAT A LITTLE BIT.
I DON'T KNOW, MAYBE I'M OFF BASE, BUT ANYWAY, COUNCIL MEMBER AMY PECK.
UM, WHEN YOU WERE TALKING ABOUT THE AUDITS, UM, IT REMINDED ME OF THE SUNSET REVIEW PROCESS THAT I TALK ABOUT ALL THE TIME.
AND I THINK IF THAT'S SOMETHING THAT WE WERE TO IMPLEMENT, WE WOULD GET A BETTER GRASP ON ALL THE ENTERPRISE FUNDS AND EVERYTHING THAT WE WERE ACTUALLY SPENDING ALL OF THE TAX DOLLARS ON.
SO SOMETHING THAT I CONTINUE TO ADVOCATE FOR, TO DO MORE THOROUGH AUDITS OF DEEP DIVES.
EVEN THE FORENSIC AUDITS, LIKE YOU WERE TALKING ABOUT, IF WE WERE TO DO THAT OF EVERY SINGLE DEPARTMENT AND PROGRAM IN THE CITY.
AND THEN YOU MENTIONED $130 MILLION, THAT'S THE EXACT NUMBER I NEED FOR ALL MY FLOODING MITIGATION PROJECTS IN DISTRICT A.
SO, YOU KNOW, IF YOU'RE LOOKING FOR A PLACE TO PUT ALL THAT SURPLUS MONEY, I WILL TAKE IT FOR DISTRICT A THANK YOU.
I THOUGHT I'D USE THAT MONEY FOR THE NEW FIRE STATIONS IN KINGWOOD, CORRECT, CHIEF, THAT'S THE EXACT NUMBER THAT I NEED.
SO, BUT YEAH, EVERYBODY WANTS THAT ONE 30 IF, IF I CAN ADD, I MEAN, ALL WE NEED TO UNDERSTAND THAT WHAT WE HAVE RIGHT NOW, WE STILL HAVE ARPA FUNDING, RIGHT? I THOUGHT WE TALKED ABOUT THIS.
UM, AND SO WE, WE WON'T HAVE THAT ONCE IT'S ENDED.
SO WE DO NEED TO, UM, UM, SECURE THIS FUND BALANCE.
WELL, THANK YOU AND, UM, APPRECIATE YOUR COMMENTS.
APPRECIATE WHAT YOU DO Y'ALL, WHEN, WHEN YOU LEAVE HERE, YOU HAVE A GREAT STAFF THAT, THAT WORKS REALLY HARD AND WE APPRECIATE EVERYTHING YOU DO, UH, BOTH FROM THE CONTROLLER PERSPECTIVE AND ALSO THE CITY FINANCE.
UH, IF ANY OF YOU SMART PEOPLE SITTING OUT IN THE AUDIENCE, UH, DON'T HIDE WILL, BUT UM, HAVE ANY IDEAS ON HOW WE CAN MAKE THIS A LITTLE BIT MORE VIBRANT, I SURE WOULD APPRECIATE IT, BUT, UM, I ALWAYS, UH, ADMIRE THE, UH, THE KNOWLEDGE THAT WE HAVE IN THE CITY OF HOUSTON AND THE WORK ETHIC AS WELL.
SO THANK YOU VERY MUCH FOR YOUR TIME.
AT THIS TIME, I'D LIKE TO WELCOME MR. DOUG SMITH WHO HAS A QUESTION REGARDING FINANCE, PROUD RESIDENT OF DISTRICT A GOOD MORNING, EVERYBODY.
I HAVE A SUGGESTION, UH, TO MAKE THE MONTHLY FINANCIAL REPORT THAT YOU RECEIVE IN YOUR PACKET MORE UNDERSTANDABLE.
UH, I CAME HERE ABOUT A YEAR AGO BECAUSE I DIDN'T UNDERSTAND LIKE, WELL THIS YEAR THERE'S $160 MILLION WORTH OF ACTUAL PROPERTY TAX MONEY THAT'S BEEN COLLECTED, BUT YOU'RE ONLY PROJECTING IT TO BE, UH, $160 MILLION LESS THAN THAT.
AND I KNOW WHAT IT IS BECAUSE YOU EXPLAINED IT TO ME A YEAR AGO.
I HEARD A COUNCIL MEMBER ASK THE SAME QUESTION, AND THIS IS T'S FUNDING THAT HAS NOT BEEN ALLOCATED YET, AND I'D LIKE TO SUGGEST THAT MAYBE DIDN'T MAKE THE FINANCIAL STATEMENTS MORE UNDERSTANDABLE.
YOU BOOK A LIABILITY AGAINST THE PROPERTY TAX SO THAT WHAT YOU SHOW IS ACTUALLY COLLECTED, UH, CORRESPONDS TO WHAT'S WHAT IS IN THE BUDGET.
IT'S JUST A THOUGHT THAT I WOULD HAVE TO MAKE IT MORE UNDERSTANDABLE AND QUIT HAVING QUESTIONS RAISED.
THE UH, SECOND POINT I'D LIKE TO BRING OUT IS ON PAGE SEVEN OF YOUR MONTHLY REPORT.
UH, IT SAYS, WE ARE CURRENTLY PROJECTING AN ENDING FUD BALANCE OF $314 MILLION, WHICH IS $47 MILLION HIGHER THAN THE ADOPTED BUDGET.
[00:30:01]
AND THEN ON THE TABLE BELOW THAT, IT SHOWS THE VARIANCE TO BE $114 MILLION.AND I THINK THE $114 MILLION IS CORRECT, BUT I THINK THAT THE EX, YOU NEED TO HAVE AN EXPLANATION OF WHAT THE DIFFERENCE IS BETWEEN THOSE TWO.
WELL, EXCUSE ME, IT'S ON PAGE, LET ME SEE.
PAGE SIX, PAGE SIX OF THE MONTHLY PACKET.
AND THEN FINALLY, I WOULD LIKE TO ADD, I KNOW YOU HAVE THE SCHEDULE SET FOR THE BUDGET HEARINGS, AND I WAS GLAD TO SEE THAT AND I'M PROBABLY WILL SEE YOU HERE FOR ALL OF THOSE.
BUT I'D LIKE TO SUGGEST THAT YOU ADD ONE HEARING.
UH, AND THAT IS FOR GENERAL GOVERNMENT.
THAT IS THE THIRD LARGEST LINE ITEM IN THE GENERAL FUND BUDGET, AND WE NEVER HEAR ANYTHING ABOUT IT.
AND, UH, I THINK IT'S IMPORTANT.
I'D LIKE TO KNOW MORE ABOUT IT.
I THINK ALL COUNCIL MEMBERS SHOULD KNOW MORE ABOUT IT.
AND I THINK THE IDEAL TIME TO SCHEDULE THAT WOULD BE YOU'VE GOT A TWO HOUR BREAK ON MAY 17TH BETWEEN GENERAL SERVICES AND PARKS AND RECREATION.
THAT WOULD BE AN IDEAL TIME TO SCHEDULE A HEARING ON THAT BECAUSE I THINK YOU SHOULD KNOW MORE ABOUT THAT.
AND I KNOW THAT, UH, THE PROPERTY TAX IS A LITTLE BIT DIFFERENT FOR US BECAUSE IT'S THE TIME OF YEAR THAT WE CLOSE OUT OUR FISCAL YEAR AND PREPARE FOR THE NEXT ONE, UH, DOESN'T COINCIDE DIRECTLY WITH THE PROPERTY TAX COLLECTION AND, AND THE RIGHT FOR PEOPLE TO PROTEST THEIR PROPERTY TAXES AND THUS HAVE THE ABILITY TO REDUCE 'EM, WHICH REDUCES WHAT WE TAKE IN EVEN THOUGH WE HAVE THE PROPERTY REVENUE CAP.
BUT I KNOW IN OUR DISTRICT WE HAVE, UH, TOURIST FUNDS THAT WE SEND BACK TO OUR SCHOOL DISTRICT TO THE TUNE OF ROUGHLY ANYWHERE BETWEEN SEVEN AND $8 MILLION EVERY YEAR.
UH, THAT'S OBLIGATED THAT WE COLLECT, AND THEN WE ARE REIMBURSE THE SCHOOL DISTRICT FOR, AND, UM, UH, I'LL LOOK INTO THE, UH, THE GENERAL GOVERNMENT.
WHAT PAGE WERE, WERE YOU LOOKING AT? VI PAGE VI, YEAH, VI AT THE BOTTOM, YOU SEE THERE'S A PARAGRAPH IN THE MIDDLE WHERE THERE'S $47 MILLION.
DO YOU SEE THAT FIGURE? $47.3 MILLION HIGHER RIGHT DOWN AFTER THE FIRST TABLE BETWEEN THE TWO TABLES ON THAT PAGE.
I'LL GET WITH YOU AFTER, MAYBE YOU CAN SHOW IT TO ME.
WE HAVE NO ADDITIONAL MEMBERS OF THE PUBLIC THAT WOULD LIKE TO SPEAK IN PERSON BEFORE WE ADJOURN THE MEETING, PLEASE NOTE THAT OUR NEXT REGULARLY SCHEDULED BFA COMMITTEE MEETING WILL BE ON MAY 31ST AT 10 O'CLOCK.
IF THERE ARE NO OTHER COMMENTS OR QUESTION, THIS MEETING IS ADJOURNED.