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SO NOW WE[FY2023 Budget Workshop: Finance ]
MOVE INTO YOUR BUDGET PRESENTATION.SO THIS IS THE BUDGET PRESENTATIONS FOR FINANCE DEPARTMENT.
YOU SHOULD HAVE A HANDOUT IN FRONT OF YOU.
BEFORE I BEGIN THE FIRST SLIDE, PLEASE LET ME QUICKLY INTRODUCE THE KEY PLAYERS IN THE FINANCE DEPARTMENT.
I KNOW YOU'VE, YOU'VE MET, UH, WILLIAM JONES.
UM, YOU MAY ALREADY INTERACTED WITH SOME OF THESE EX EXCELLENT TEAM PLAYERS IN, IN, IN THIS FINANCE DEPARTMENT SUPPORTING ME IN LEADING THIS DEPARTMENT.
WE HAVE, I JUST WANNA MAKE SURE WE HAVE THE SLIDES.
WELL, WHILE WE ARE WAITING ON THAT, I KNOW YOU HAVE YOUR HANDOUT, UH, THAT WOULD BE SLIDE TWO IN YOUR HANDOUT.
UH, WE HAVE SIX DIVISIONS IN THE FINANCE DEPARTMENTS.
UH, AGAIN, FROM THE DIRECTOR'S OFFICE WE HAVE NITA JONES.
I DUNNO IF SHE'S HERE, IF NOT, SO IF I CALL YOUR NAME, PLEASE DO STAND UP SO THAT I DON'T HAVE TO LOOK BACK.
BUT, SO WE HAVE NITA JONES, WHO OF COURSE YOU ALL MET AND VERY, VERY FAMILIAR WHO SUPPORT THE COUNCIL'S OFFICE.
WE HAVE ROCHELLE MCHENRY ANUS, SHE'S HERE.
SHE SUPPORTED THE HOUSTON FIRE DEPARTMENTS.
UH, WE ALSO HAVE WILLIAM BRYAN WHO SUPPORT THE HOUSTON INFORMATION TECHNOLOGY.
WE HAVE SHEILA MURPHY, WHO ALSO SUPPORTED, UM, THE BUSINESS OFFICE AND THE FINANCE DEPARTMENT.
UH, THE NEXT DIVISION, THIS IS TREASURY CAPITAL MANAGEMENT.
OF COURSE YOU ALL KNOW MELISSA DOKI, WHO'S NOT HERE TODAY.
UH, WE ALSO HAVE FINANCIAL PLANNING ANALYSIS.
WILLIAM JONES, UH, WHO YOU'VE MET.
UM, THE NEXT ONE IS THE FINANCIAL REPORTING AND OPERATIONS BY AFRA SHEET.
JUST WANNA MAKE SURE YOU KNOW THE FACE AND THE NAME TOGETHER.
AND OF COURSE, WE HAVE THE STRATEGIC PROCUREMENT DIVISIONS.
JERRY ADAMS, THERE GO OUR CHIEF PROCUREMENT OFFICER.
AND LAST BUT NOT LEAST IS THE PERFORMANCE IMPROVEMENT.
JESSE BOUNDS, IF HE'S HERE, THE COMPUTER FROZE IN THE BACK, SO JUST KEEP ROLLING.
SO AGAIN, FINANCE DEPARTMENTS HAS TWO FUNDS.
UM, SO WE HAVE THE GENERAL FUND FOR CITYWIDE SERVICES, AS WELL AS THE REVOLVING FUND.
UH, THAT IS A FINANCIAL SURFACE, UH, WHICH IS A SURFACE CHARGE BACK FOR FINANCIAL SERVICES PROVIDED TO CERTAIN DEPARTMENTS.
SO, LET'S, WITH THAT, WE ARE MOVING TO THE NEXT SLIDE.
IF YOU CAN FLIP YOUR PAGE AGAIN ON THE FUNCTIONAL ORGANIZATION CHARTS CHART IN THE GENERAL FUND.
UH, THE FINANCE BUDGET IS AT 20.8 MILLION, UH, WITH 116 FTES IN THIS.
UM, SO AGAIN, YOU SAW THE, UH, FUNCTIONAL IN DIRECTOR'S OFFICE FROM THE COUNCIL ADMINISTRATION'S, UH, LEGISLATIVE ANALYSIS, UH, TPIA COORDINATIONS, UH, THE TREASURY CAPITAL MANAGEMENT AT 2.9 MILLION.
UH, THIS IS THE AREA WHO THAT HANDLES THE CAPITAL BUDGET PLANNING, MANAGEMENT, REPORTING AND ANALYSIS, THE DEBT ISSUANCE AND DERIVATIVE MONITORING, UM, UH, ECONOMIC MODELING AND PROJECTION.
THE, UH, CITY'S FINANCIAL ALTERNATIVE, UM, LIQUIDITY ALTERNATIVES, UH, TAX AND REVENUES MANAGEMENT.
I KNOW MELISSA'S OFTEN WOULD COME BEFORE COUNCILS TO GIVE A PRESENTATION ON UPCOMING FINANCIAL TRANSACTIONS.
UH, THAT DIVISION ALSO HANDLES THE OPE AND PENSION SYSTEM ANALYSIS, FINANCIAL PLANNING ANALYSIS, UH, BUDGET AT 2.5 MILLION.
UH, BUT AS YOU SAW, WE HAVE, UH, VERY LIMITED, UM, UH, UM, UH, ACTIVE EMPLOYEES AT THIS POINT.
UM, AGAIN, THAT DIVISION HANDLING THE CITYWIDE ANNUAL OPERATING BUDGET, THE FIVE YEAR FORECAST, PROVIDING REVENUES AND EXPENDITURES PROJECTIONS, WE HAVE THE MONTHLY FINANCIAL REPORTING, MID-YEAR REVIEW, FUNDS MANAGEMENT, AND ANY AD HOC FINANCIAL REPORTING.
THE NEXT ON THE FINANCIAL REPORTING OPERATIONS.
SO AGAIN, THIS IS A BROAD MIX OF CITYWIDE ACCOUNTING AND REPORTING OPERATIONS.
FROM THE ACCOUNTING DISASTER RECOVERY TO FIXED ASSETS MANAGEMENT AND GRANTS MANAGEMENT, UH, INCLUDING THE TRUST FUNDS MANAGEMENT AND ACCOUNTS RECEIVABLE, UH, IS AT $6 MILLION BUDGET, UH, AT 29.2 FTES.
STRATEGIC PROCUREMENT, OF COURSE, UH, AS THE NAME IMPLIES, UM, HANDLING THE CD WIDE PROCUREMENT ADMINISTRATIONS MATERIAL VENDOR CONTRACT MANAGEMENT P CUT ADMINISTRATIONS, UM, BUDGETED FOR 5.9 MILLION AT 44.7 FTES.
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AND AGAIN, WE HAVE THE PERFORMANCE IMPROVEMENT DIVISIONS IN HERE AT 440,000.UH, THIS IS THE OFFICE OF INNOVATIONS THAT DEALS WITH THE CITYWIDE OPERATIONAL PROCESS IMPROVEMENT FROM CITYWIDE DATA ANALYTICS TO THE SMART CITY PROGRAM MANAGEMENT.
CONTINUING ON TO THE NEXT SLIDE, WHICH IS THE REVOLVING FUND.
UH, THIS IS BUDGETED AT 7.5 MILLION AT 60.2 FTES.
AGAIN, THIS SLIDE, UM, IT PROVIDES FINANCIAL SERVICES TO FLEET HITS, UM, FIRE DEPARTMENTS, GRANTS MANAGEMENT FOR HOUSING DEPARTMENT.
UH, THIS FUND ALSO HANDLES THE CITYWIDE ENERGY FINANCIAL MANAGEMENT, AS WELL AS ACCOUNTS PAYABLE FUNCTION FOR CERTAIN DEPARTMENTS.
DIRECTOR'S OFFICE BUDGETED 1.4 MILLION.
UH, THIS IS THE FISCAL ADMINISTRATORS TO OVERSEE THE FINANCIAL MANAGEMENT FOR HITS AND FIRE DEPARTMENTS.
THAT INCLUDES THE ANNUAL BUDGET, MONTHLY FINANCIAL REPORT, AND ANY AD HOC FINANCIAL ANALYSIS.
AND IN THE TREASURY AND CAPITAL MANAGEMENT, UH, BUDGETED 267,000.
THIS IS ONLY TWO FTES IN HERE SUPPORTING CLIENT DEPARTMENTS FOR CAPITAL PLANNING AND, AND COST, COST BENEFIT ANALYSIS.
UH, THIS IS FOR, UM, FLEET HITS AND, AND FIRE, UM, AS OUR CLIENT DEPARTMENTS FOR THE CAPITAL MANAGEMENT FINANCIAL PLANNING ANALYSIS AT 885,500.
THIS IS HANDLING THE ENERGY FINANCIAL MANAGEMENT, SUPPORTING THE FLEET DEPARTMENTS, UM, SORRY, ENERGY FINANCIAL MANAGEMENT FOR GSD AND ALSO SUPPORTING THE FLEET MANAGEMENTS IN THEIR OPERATING ANNUAL BUDGET AND MONTHLY FINANCIAL REPORT.
STRATEGIC PROCUREMENT AT 1.3 MILLION.
THIS IS, AGAIN, SUPPORTING THE PROCUREMENT FOR FLEETS HITS AND FIRE DEPARTMENTS.
UM, ONE THING I WANNA NOTE ON THE FINANCIAL REPORTING OPERATIONS, UM, I DUNNO IF I'M, I THINK I PROBABLY MISSED IT.
FINANCIAL REPORTING OPERATIONS AT 3.6 MILLION.
THIS IS HANDLING THE INVOICE RECONCILIATIONS AND PAYMENTS FOR SEVERAL DEPARTMENTS, INCLUDING HITS, UH, PUBLIC WORKS, FIRE DEPARTMENTS, AND PLANNING, AS WELL AS THE PAYMENT ON THE ENERGY MANAGEMENT.
THAT IS THE ELECTRICITY AND NATURAL GAS BILLS THAT WE HAVE TO, UM, PAY AS WELL AS THE SERVICE CHARGEBACK PROCESSING, INCLUDING THE EMS BILLING THAT IS ALL IN THIS REVOLVING FUND.
MOVING ON TO THE NEXT SLIDE, SLIDE FIVE.
UM, AGAIN, I'M JUST GONNA GO BRIEFLY AGAIN, YOU ALL KNOW WHAT WE DO IN THE FINANCE DEPARTMENT.
THIS IS THE MAJOR SERVICES IN THE FINANCE DEPARTMENTS IS MANAGING THE CITYWIDE DEBT AND CAPITAL MANAGEMENT, BUDGETING FOR CASTING CITYWIDE ENERGY CONTRACTS, FINANCIAL REPORTING AND AUDITING, UH, GRANTS MANAGEMENT OVERSIGHT, DISASTER RECOVERY, AS YOU'RE ALL AWARE, AS WELL AS THE PROCUREMENT, THE CITYWIDE PROCUREMENT.
NEXT SLIDE, ON THE STATUTORY REQUIREMENTS FOR SERVICE DELIVERY.
UM, WE, SO I, I WANT TO STRESS OUT, WE DO HAVE TO COMPLY WITH THE STATUTE REQUIREMENTS FOR WHAT WE DO IN THE FINANCE DEPARTMENTS.
THAT IS FROM ENSURING COMPLIANCE WITH THE TEXAS TAX CODE AND PROPOSITIONS ONE AND H, UH, TO MAKE SURE THAT THE CITY PRESENT A BALANCE BUDGET IN ACCORDANCE WITH STATE LAW AND FINANCIAL POLICIES.
WE ALSO HAVE TO FOLLOW THE FEDERAL AND STATE COMPLIANCE, INCLUDING THE PROCUREMENT LAW THAT WE HAVE TO, UH, OUT COMPLY AND ALSO COMPLETION OF THE ANNUAL FINANCIAL AND SINGLE AUDIT, AGAIN, TO BE IN COMPLIANT WITH THE STATE AND FEDERAL LAWS.
UM, SO AGAIN, ANY MISMANAGEMENT OF THIS FUNCTIONS WILL BE IMPACTING THE CITY TREMENDOUSLY.
FROM UNINFORMED DECISIONS FROM YOU ALL, AND THE MAYOR'S PROCUREMENT FAILURE THAT WILL IMPACT THE SURFACE DELIVERY AND CITY OPERATIONS, UH, TO CLAW BACK, TO CLAW BACK THE FEDERAL FUNDS, UH, AND EVEN TO DEFAULTING OF THE CITY DEBT.
SO IT IS IMPORTANT FOR US, UH, IN, IN OUR FUNCTION IN THE FINANCE DEPARTMENTS TO COMPLY WITH ALL OF THIS LAWS, UH, FOR THE, UM, SUSTAINABILITY OF THE CITY'S OPERATIONS.
SO LET'S, LET'S START LOOKING INTO THE NUMBERS AT THIS POINT.
UM, I KNOW WE DON'T HAVE THE SLIDE.
SO ON THE GENERAL FUND, UH, AGAIN, WE HAVE 2.1 BILLION.
THE BULK OF THE PROPERTY TAX AND SALES TAX IS IN THE FINANCE DEPARTMENT'S BUSINESS AREA.
UM, $2.1 BILLION GENERAL FUND IN FISCAL YEAR 23, UH, WHICH IS 50 51 0.5 MILLION HIGHER COMPARED TO THE FISCAL YEAR 22 ESTIMATES, IT IS ABOUT 2.5%, UH, INCREASE.
I KNOW WE'VE WON A GREAT DEAL IN THE BUDGET OVERVIEW ON THE PROPERTY TAX AND SALES TAX.
UH, AS WE, UH, AS, AS WE, WE SAW IT INITIALLY.
UH, AGAIN, TO KEEP IN MIND, PROPERTY TAX AND SALES TAX ALONE IS COMPRISED ABOUT 98.7% OF THE FINANCE OR REVENUES.
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FUND, WE HAVE ABOUT 7.5 MILLION IN HERE.BUT AGAIN, THIS IS A SURFACE CHARGEBACK.
SO IT IS ESSENTIAL REVENUES AS WE RECOVER THE COST OF PROVIDING FINANCIAL SERVICES TO THIS DEPARTMENT.
SO THE NEXT SLIDE, SLIDE EIGHT, IS GOING THROUGH THE DETAILS AGAIN.
UM, AGAIN, AS AS WE MENTIONED, UH, OUR PROPERTY TAX IS AT $1.28 BILLION REFLECT AN INCREASE OF 49, 48 0.9 MILLION COMPARED TO FISCAL YEAR 22 ESTIMATES.
UM, AGAIN, THIS IS BASED ON THE PROPOSITIONS ONE AND H UM, AND AGAIN, THIS IS BASED ON THE CPI INFLATION RATE OF 4.28% AND 0% GROWTH OF POPULATIONS ON THE SALES TAX.
AGAIN, WE'VE, WE'VE COVERED THIS BEFORE, OUR SALES, OUR SALES TAX REVENUES IS AT $807 MILLION, WHICH IS ASSUMING NO GROWTH AT THIS POINT.
UH, AGAIN, WE CONTINUE TO MONITOR.
WE'VE SEEN SOME OPTICS IN FISCAL YEAR 2022.
BUT AGAIN, WITH SO MANY UNCERTAINTIES AND EVEN GOING THROUGH THE CONSULTANT, UM, UM, REVIEW, UH, WE FELT THAT IT'S PROBABLY BEST TO JUST KEEP IT FLAT AT THIS POINT BECAUSE OF THIS UNCERTAINTIES IN THE INFLATIONS, UH, FOR FISCAL YEAR 23 BUDGET FOR MIXED BEVERAGE TAXES AT 20.7 MILLION REFLECTS ABOUT $570,000 INCREASE FROM FISCAL YEAR 22 ESTIMATES.
NEXT SLIDE, WHICH IS SLIDE NINE.
THIS IS THE EXPENDITURE SITE ON THE, AGAIN, A COMBINED, UM, UM, GENERAL, UM, A COMBINED BUDGET THAT WE HAVE IN FISCAL YEAR 23 IS ABOUT 28.3 MILLION.
UH, 20.8 MILLION IS FOR GENERAL FUND.
AND 7.5 OF THAT IS FOR THANK YOU REVOLVING FUND.
UM, SO WE'LL GO THROUGH THE DETAILS IN THE NEXT SLIDE.
THIS IS JUST A, AGAIN, THE COMPOSITIONS ON THE JOB FUND, UH, FOR THE PERSONNEL VERSUS NON PERSONNEL.
UH, AGAIN, PERSONNEL COMPRISE ABOUT 76%, UH, IN, IN THE GENERAL FUND OF 15.8 MILLION.
UH, AND 24 OF 24% OR 5 MILLION IS THE NON PERSONNEL OF WHICH, IF YOU LOOK AT THE, UH, PIE CHARTS ON THE RIGHT, UM, THAT COMPRISE OF BILLING COLLECTIONS ABOUT 1.3 MILLION.
SO THAT IS THE BILLING COLLECTIONS, UM, WHERE WE PAY FOR THE HARRIS COUNTY TAX OFFICE FOR THE PROPERTY TAX COLLECTED.
UH, WE ALSO HAVE AN AUDIT AUDITING CONTRACTS, 1.6 MILLION.
THIS IS WITH THE, UM, THE AUDITING CONTRACTS FOR THE YEAR END AUDIT THAT WE WORK CLOSELY WITH THE CONTROLLER'S.
OFFICE RESTRICTED ACCOUNT AT 949,000, COMPRESSED ABOUT 19% AND SERVICES, WHICH IS 1.1 MILLION.
SO THIS IS WHERE WE HAVE THE PRINTING COSTS, ADVERTISING COSTS, UH, PARKING RENTALS.
UM, AND SO SOME OF THOSE, UH, CONSULTANTS HAPPENING WITH THE OUTCOME BASED BUDGETING, FOR INSTANCE, IS ALL IN THAT SERVICES CATEGORY.
SO NOW WE'LL LOOK AT THE NET CHANGE FROM THE FISCAL YEAR 22 CURRENT BUDGET, UH, ON THE NEXT SLIDE.
SO, UH, LET'S START WITH THE OPERATING BUDGET IN FISCAL YEAR 22, STUDY AT 17.9 MILLION.
UH, AGAIN, WITH THE ADJUSTMENT, AS YOU SAW IN THE GENERAL APPROPRIATION, WE HAVE RESTRICTED ACCOUNT HOPE, UH, AND HEALTH BENEFITS ADJUSTMENT, INCLUDING THE CITY COUNCIL SURPLUS FOR A ONE TIME ADJUSTMENT THAT I GRACELY THANK YOU FOR NITA JONES OFFICE.
SO OUR FISCAL YEAR 22 CURRENT BUDGET AT THIS POINT WITH THOSE ADJUSTMENTS AT 19 MILLION.
SO NOW MOVING ON TO THE INCREMENTAL INCREASES, UM, TO, TO COME UP WITH OUR FISCAL YEAR 23.
SO AGAIN, THAT CITY COUNCIL SURPLUS IS A ONE TIME ADJUSTMENT.
UM, THIS BUDGET, IT DOES INCLUDE FUNDING FOR 10 NEW POSITIONS.
SO I DID ASK FOR FUNDING FOR 10 NEW POSITIONS IN MY DEPARTMENTS.
UM, THIS IS TO HELP, UM, ASSISTING THE STRATEGIC PROCUREMENT, UH, GRANTS OFFER SITE, AND ALSO CAPITAL MANAGEMENT.
AGAIN, WITH THIS, UM, FEDERAL MONEY THAT WE HAVE, WE NEED MORE, UM, STREAMLINED PROCESS AND, AND HELP IN THOSE PROCUREMENT DIVISIONS, UM, AS WELL AS THE GRANTS OFFER SITE.
AND SO WITH THAT, OUR CHANGING FROM OPERATING BUDGET, UM, FROM FISCAL YEAR 22 REFLECT ABOUT 5.8%.
NOW I'M GONNA MOVE ON TO THE RESTRICTED ACCOUNT AND HEALTH BENEFITS AND HOPE PAY INCREASES.
UM, SO THOSE CONTRACTUAL MANDATED INCREASES ABOUT 621,000.
SO IN TOTAL, UM, OUR BUDGET INCREASED BY 1.6 MILLION.
UH, SO THAT COMPRISED ABOUT 8.6% FROM THE FISCAL YEAR 22 CURRENT BUDGET.
SO THOSE ARE THE DETAILS THAT INCREASE DECREASE FROM FISCAL YEAR 22 TO FISCAL YEAR 23 EXPENDITURES BUDGET.
AGAIN, I MENTIONED THIS BRIEFLY.
UH, WHEN WE GO THROUGH THE NET CHANGE, AGAIN, OUR FI OUR BUDGET INCLUDES FOR BOTH REV, UH, GENERAL FUND AND REVOLVING FUND INCLUDES FUNDING FOR HEALTH BENEFITS, PENSION CONTRIBUTIONS, AND THE 3% HOPE PAY INCREASES.
UH, AGAIN, IN GENERAL FUND, UH, IT DOES INCLUDE FUNDING FOR 10 NEW EMPLOYEES, UH, NEW POSITIONS
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TO KEEP UP WITH INCREASING WORKLOAD.UM, THIS IS DEALING WITH THE STRATEGIC PROCUREMENT AND THE GRANTS MANAGEMENT AS WELL AS THE CAPITAL AND DEBT FUNCTIONS, UH, REVOLVING FUND, AGAIN, THIS IS JUST TO PROVIDE FUNDING, UH, FOR, UM, FINANCIAL PROCUREMENT AND ACCOUNTS PAYABLE, RECEIVABLE SUPPORT TO HITS FLEET AND FIRE, AS WELL AS THE ENERGY MANAGEMENT.
AGAIN, IT'S VERY STRAIGHTFORWARD.
UH, I THINK THAT'S THE END OF MY PRESENTATIONS AND I'M OPEN FOR ANY QUESTIONS.
THANK YOU, UH, DIRECTOR EMO, I, AGAIN, I JUST WANTED TO THANK YOU, UH, FOR ALL THE WORK YOU AND YOUR TEAM DO AND EVEN IN, UM, OTHER EFFORTS, EFFORTS THAT WE AS COUNSEL, UH, OUR UNDERTAKING.
WE COME TO YOU AND YOUR ALWAYS WILLING TO HELP US AND SUPPORT US.
SO THANK YOU FOR MAKING OUR JOBS A LOT EASIER.
I'M GONNA BE ASKING THIS QUESTION OF EVERY DEPARTMENT.
UM, GIVEN THE SIGNIFICANT BUDGET CONSTRAINTS THAT THE CITY CONTINUES TO FACE ARE THEIR PRIORITY ITEMS THAT YOUR DEPARTMENT IS NOT GOING TO BE GETTING IN THIS BUDGET, IT'S NOT BE GETTING, YEAH.
SO THANK YOU FOR ASKING THAT QUESTION.
UM, WITH, WITH THE PANDEMIC AND A LOT OF THE GRANTS FUNDING WE HAVE, UM, THE FIRST PRIORITY I ASK FOR THE MAYOR IS TO MAKE SURE THAT WE HAVE ENOUGH RESOURCES TO CARRY THOSE REPORTING AND MAKING SURE THAT FEDERAL MONIES ARE SPENT IN COMPLIANCE.
UM, SO I'M GRACIOUS ENOUGH TO GET THOSE DECISIONS FUNDED AS YOU SEE IN THIS BUDGET.
UH, AND THAT INCLUDES THE PROCUREMENT GROUPS.
UM, AGAIN, WE HANDLE CITYWIDE FUNCTIONS IN HERE FROM THE GRANTS OFFER SIDE AND THE PROCUREMENT.
SO, UM, I THINK I, I DON'T HAVE ANYTHING ELSE AT THIS POINT.
UM, AGAIN, IT MAY CHANGE BECAUSE AGAIN, WE'VE, WE'VE TALKED ABOUT GREAT RESIGNATIONS AND, AND, UH, COMPETITIVENESS WITH THE MARKET.
AND I THINK, AGAIN, THIS IS HAPPENING IN ALL ACROSS THE BOARDS THAT EVERYBODY'S SEEING THAT.
AND SO, UM, I MAY COME THEN, BUT AT THIS POINT, SINCE THIS IS THE START OF THE FISCAL YEAR, UM, I, I HAVE BEEN GRACIOUSLY GRANTED THOSE FUNDING.
AND SORRY IF I, UH, IF THESE QUESTIONS WERE ASKED EARLIER, BUT I JUST WANTED TO KIND OF GET A GENERAL, UM, OVERVIEW FOR THE PUBLIC ON JUST HOW FINANCIALLY SOUND, UH, STABLE WE ARE CURRENTLY.
I KNOW WE THROW OUT A LOT OF NUMBERS, AND THIS IS KIND OF A HIGH LEVEL OVERVIEW, BUT FOR THIS, THE, THE GENERAL PERSON THAT'S JUST TUNING IN, UM, WOULD YOU, WOULD YOU SAY THAT THE CITY RIGHT NOW IS FINANCIALLY SOUND? YES.
SO I JUST WANNA POINT OUT, SO FOR, UH, CREDIT RATING AGENCIES TO CHANGE THEIR OUTLOOK FROM NEGATIVE TO STABLE IS A GREAT DEAL.
UM, FOR THE ITEMS THAT THE MAYOR HAD ACCOMPLISHED WITH THE PENSION REFORM AND THE EP REFORM, UH, THOSE CREDIT RATING AGENCIES REALLY RECOGNIZE THE LEADERSHIP, INCLUDING YOU ALL, UM, TO MANAGING THE FINANCIALS OF THE CITY OF HOUSTON.
SO YES, WE ARE CURRENTLY FINANCIALLY SOUND.
ARE THERE ANY SPECIFIC SHORTFALLS THAT YOU SEE THAT WE NEED TO BE AWARE OF? UM, IT DEPENDS ON WHERE WE GO, WHERE THE PATH WE ARE MOVING FORWARD AT THIS POINT.
AND I THINK THAT'S WHY I STRESS ENOUGH ABOUT PRESERVING THIS FUND BALANCE BECAUSE WE CAN BE IN THE PATH THAT WE SHOULD, HAS THE, UH, ADMINISTRATION IDENTIFIED SPECIFIC ALLOCATIONS REGARDING THE ARPA DOLLARS THAT WILL BE COMING IN THAT WE NEED TO BE AWARE OF.
SO I KNOW I MENTIONED TO YOU ABOUT, WE HAVE ONE $60 MILLION OF ARPA FUNDING IN HERE, AND I KNOW MENTIONED MAYOR MENTIONED ABOUT THE, THE, THE USE OF THE ARPA DOLLARS FOR THE REVENUE LOSSES IN THE NEXT YEAR.
UM, I KNOW THERE'S OTHER PROJECTS THAT HAVE BEEN PRESENTED AND I THINK YOU, YOU ALL HAVE SEEN IT AS WELL.
THE ONE SAFE HOUSTON, FOR EXAMPLE, IS PART OF THE ARPA FUNDINGS.
UH, AND I CAN GIVE YOU THE LIST.
I THINK WE HAVE THE ARPA WEBSITE ALREADY OPEN SO WE CAN, WE CAN GIVE YOU THOSE DETAILS.
WELL, I WANT TO THANK YOU AGAIN AS WELL FOR YOUR LEADERSHIP AND YOUR ENTIRE TEAM.
THANK YOU, UH, FOR ALL THE HARD WORK AND THE LONG NIGHTS.
COUNCIL MEMBER DAVID ROBINSON.
AND FOLLOWING ON THE LINE OF MY TWO COLLEAGUES WITH THEIR LAST QUESTIONS.
I JUST WANT TO SAY, YOU KNOW, THANK YOU FOR EVERYTHING YOU'RE DOING.
I THINK THIS IS A GOOD WRAP UP TO THE LAST TWO DAYS WHERE WE'VE HEARD FROM YOU FROM THE MAYOR IN PARTICULAR, AND I KNOW A MOMENT AGO WHEN YOU WERE ACKNOWLEDGING YOUR STAFF, WHO WE ALL FEEL VERY STRONGLY ABOUT, GREAT JOB, EVERYONE YOU MENTIONED, UH, VENITA JONES, WHO WAS NOT IN THE CHAMBER AT THE TIME AND NITA'S HERE.
SO I JUST WANTED TO CALL PARTICULAR ATTENTION TO HER 'CAUSE SHE DOES A GREAT JOB ACROSS THE STREET,
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TAKING CARE OF US AND OUR, OUR BUDGETS FOR ALL OUR PEOPLE.AND TO THE POINT ABOUT IM, YOU KNOW, IMPACT OF THE GREAT RESIGNATION.
I KNOW SHE'S HAD A LOT OF WORK TO DO FOR A NUMBER OF OUR OFFICES.
UM, SO I JUST WANTED TO ASK YOU ONE FOLLOW UP QUESTION TO THAT.
I DON'T KNOW IF SHE HEARD IT WHEN SHE WAS ABSENT.
DID YOU MEAN THAT YOU WERE ZEROING OUT HER BUDGET? IS THAT RIGHT?
COUNCIL MEMBER SALLY ALCORN, THANK YOU AND GOOD FOR YOU FOR GETTING THE 10 NEW POSITIONS.
UM, A COUPLE ON THE, IN THE BIG BOOK YOU MENTIONED AS ONE OF YOUR PERFORMANCE MEASURES, GETTING OUR GETTING IN COMPLIANCE WITH OUR FINANCIAL POLICIES A HUNDRED PERCENT.
I JUST SEE THAT WE'RE OUT OF COMPLIANCE ON JUST TWO OF 'EM.
ONE HAS TO DO WITH INTERNAL CONTROLS AND ONE ON OUR CREDIT RATING, OUR CRED.
UM, CAN YOU EXPLAIN A LITTLE BIT FURTHER ABOUT HOW WE'RE GONNA COME IN COMPLIANCE WITH THAT? I THINK ON THE STRUCTURALLY BALANCED BUDGET STUFF, IT'S IN PROGRESS.
SO, UM, BUT THAT WAS, THOSE TWO WERE OUT OF COMPLIANCE.
SO CAN YOU TALK ABOUT THAT? YEAH, SO, UM, SO KEEP IN MIND WHEN WE HAVE THE, AND WE, WE KEEP OUR BAR HIGH, UM, WHICH IS GOOD.
WHEN WE DID THE FINANCIAL POLICY, I THINK IT WAS BASED ON FISCAL YEAR 2014, IF I'M NOT MISTAKEN.
UH, AND A LOT HAPPENED FROM FISCAL YEAR 2014 TO NOW TO NOW.
UM, SO THERE WAS A TIME WHEN WE DID GET DOWNGRADED AND I CAN'T REMEMBER WHICH ONE, AND I THINK, LIKE I SAID, WE, WE WERE, UH, HAVING A NEGATIVE OUTLOOK AND SO NOW WE ARE MOVING BACK UP.
SO WE ARE ON THE RIGHT PATH JUST BY THAT CHANGE FROM NEGATIVE TO STABLE.
AND SO NOW THE NEXT, AND IT DOESN'T, SO THAT, LET ME, LET'S START.
THE CHANGE OF THE CREDIT RATING DOES NOT COME OVERNIGHT.
SO IT TAKES SOME STEPS BECAUSE THEY WANNA MAKE SURE HOW YOU RUN IN THAT YEAR AND THEN THE NEXT YEAR THEN THEY WILL CHANGE IT.
AND SO NOW THE FACT THAT WE CHANGE FROM THE NEGATIVE TO STABLE IS GOOD.
SO THE NEXT HOPE IS, UH, WITH ALL THIS PRESERVE FUND BALANCE, HOPEFULLY WE WOULD GET THOSE ADDITIONAL INCREASE IN THE CREDIT RATING SO THAT WE CAN GO BACK TO THE COMPLIANCE COMPARED TO FISCAL YEAR 14.
ON THE RISK ASSESSMENT, UM, THERE WAS PART OF OUR BUDGET REDUCTIONS, TO BE HONEST WITH YOU, WITH THE INTERNAL AUDIT, AGAIN, DURING FISCALLY 14 TO NOW, A LOT OF THINGS HAPPEN.
THE ECONOMY LANDSCAPE HAS CHANGED.
UH, SO THERE WAS BUDGET REDUCTIONS ON THE INTERNAL AUDIT.
UM, SO THERE WAS LOT OF COMPLIANCE.
SO WE ARE GOING BACK TO SEE WHAT WE CAN DO TO PUT IT BACK, UH, IN THE COMPLIANCE STATE.
AND I HAVE SOME QUESTIONS ON SPECIFIC LINE ITEMS WITHIN GENERAL GOVERNMENT, AND YOU'RE THE APPROPRIATE PERSON TO SEND THOSE TO, I HOPE.
I, I CAN TELL YOU THE DOLLARS ON WHAT, SO, UH, SOME OF THE OPERATING, UM, QUESTIONS I PROBABLY WE WILL HAVE TO DEFER, BUT OKAY.
AND THERE ARE NO OTHER COUNCIL MEMBERS IN Q AND, UH, AMED MADE THESE COMMENTS YESTERDAY.
YOU KNOW, THE CITY OF HOUSTON BUDGET IS MADE UP BY THE ADMINISTRATION, YOU AND YOUR STAFF AND THE MAYOR AND PRESENT IT TO US AND WE MAKE AMENDMENTS TO IT.
BUT OUR FINAL VOTE IS EITHER YES OR NO.
WE EITHER ACCEPT IT OR WE REJECT IT.
UM, I THINK THIS IS, BUDGET IS IN THE BEST SHAPE OF ANY BUDGET I'VE DEALT WITH IN MY NINE YEARS HERE, AND IT'S BECAUSE OF YOU AND YOUR TEAM AND THE DILIGENCE THAT WE PUT FORWARD A YEAR AGO WHEN WE SAW SALES TAX REVENUE AND A LOT OF OUR REVENUE GONE DOWN AND WE MADE SOME SPECIFIC BUDGETARY CUTS AND, UH, WE SEE THE GOOD OF THOSE.
SO THANKS FOR YOUR LEADERSHIP.
ALWAYS ENJOY WORKING WITH YOU AND, UH, YOUR DEPUTY DIRECTORS, MR. JONES AND MS. DEBOWSKI AND YOUR ENTIRE TEAM.
Y'ALL DO A GREAT JOB DAY IN AND DAY OUT IN A TOUGH ENVIRONMENT.
AND, UH, THANKS FOR EVERYTHING YOU DO.
AND I DO BELIEVE THIS BUDGET PROCESS IS HOPEFULLY GONNA BE ONE OF THE SMOOTHEST ONES WE SEE BECAUSE OF SOME OF THE PAIN THAT YOU SAW COMING AND YOU MADE ADJUSTMENTS, YOU AND YOUR TEAM.
WE DO HAVE THREE VIRTUAL PUBLIC SPEAKERS.
THE FIRST IS, UH, SABA BLANDING STAR SIX.
AGAIN, MS. BLANDING, UNMUTE STAR SIX.
UM, I, I HAVE A QUESTION KIND OF TWO SIDES OF PROBABLY THE SAME COIN.
UM, YOU MENTIONED THE HIGH NUMBER OF VACANCIES GOING INTO THE BUDGET CYCLE.
UM, WHY IS A RETEN, WHY IS RETENTION AN ISSUE FOR YOUR DEPARTMENT, UM, BEYOND THE GREAT RE RESIGNATION AND HOW CAN WE IMPROVE IT? AND THEN KIND OF ALONGSIDE THAT AND MAYBE KINDRED TO WHAT COUNCIL MEMBER CAME IN, ASKED EARLIER, I'M JUST REALLY CURIOUS, IN A PERFECT WORLD, HOW MANY EMPLOYEES DOES YOUR DEPARTMENT NEED? IDEALLY, LIKE WHAT WOULD BE THE PERFECT NUMBER AND UH, WHAT TYPE OF, KIND OF SIMILAR TO THIS, LIKE WHAT TYPE OF PAY INCREASES, UM, WOULD THERE BE IDEALLY? SO I HAVE A MORE PRAGMATIC QUESTION ABOUT, UH, VACANCIES AND, AND RETENTION AND IMPROVING IT, AND THEN JUST KIND OF, I, I WOULD LIKE TO KNOW THE IDEAL NUMBER OF EMPLOYEES SO WE CAN KIND OF KNOW THE DIFFERENCE BETWEEN
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WHAT'S HAPPENING AND WHAT IS NEEDED.SO IT'S, IT'S A, IT'S AN INTERESTING QUESTION.
SO LET'S START WITH THE VACANCIES AT THIS POINT.
UM, SO WE, WE ARE IN THE GENERAL FUND DEPARTMENTS AND YOU'VE, YOU'VE GONE THROUGH THE BUDGET PRESENTATIONS WITH OUR LIMITED REVENUE SOURCES.
UM, AND SO WE HAVE TO CONTINUOUSLY LOOKING FOR A, UH, EFFICIENCIES AND, AND, AND PROCESS IMPROVEMENTS, UH, IN THE FINANCE AND CITY DEPARTMENT CITYWIDE.
UM, WHAT HAPPENED WITH THE PANDEMIC, I THINK IT CHANGED, AND I THINK YOU PROBABLY KNOW THIS TOO, IT CHANGED THE LANDSCAPE OF THE GLOBAL, UH, MINDSET OF, OF EMPLOYEES AND EMPLOYER TOO, RIGHT? UH, SO, UM, SOME, SOME PRIVATE SECTORS CAN PROVIDE THOSE FLEXIBILITIES THAT, THAT WE DON'T AT THE CITY OF HOUSTON, RIGHT? BECAUSE THE WORK IS DIFFERENT.
UM, WE HAVE PEOPLE WHO HAS TO BE HERE MEETING CITIZENS.
UM, AND SO, AND THE PAY THE MARKET STUDY, UM, YOU KNOW, AGAIN, IT'S, IT'S HARD TO COMPETE WITH THE PROFIT SECTORS.
OF COURSE, WHEN YOU DO A MARKET STUDY, YOU COMPARE WITH THE SAME GOVERNMENT, MUNICIPAL EMPLOYEES.
UM, AND SO WE CONTINUOUSLY LOOKING AT THAT AND OF COURSE IS THE, UM, UH, VICIOUS CYCLE, IF I CAN SAY, THE MORE WORK YOU DO, THE MORE BURNOUT YOU ARE, AND THEN THE MORE YOU ARE LOOKING FOR OTHER POSI, UH, POSITION, NOT ELSEWHERE.
RETENTIONS AT THE SAME TIME'S BECAUSE YOU DON'T HAVE ENOUGH PEOPLE AND YOU ARE OVERWORKED, UM, PAY INCREASES AND, AND, AND, AND IDEAL NUMBER OF PEOPLE, UH, AND I CAN GO BACK ON THE, UH, PREVIOUS YEARS WHEN WE DON'T HAVE ANY ALL OF THESE CUTS AND TO SEE WHAT THOSE NUMBERS ARE, YOU'RE PROBABLY LOOKING AT BACK IN 2010 OR I MEAN 2008, IF ANYTHING.
RIGHT? AND I HAVE TO LOOK AT THOSE FTES NUMBER, UH, BUT THOSE ARE, UH, YOU KNOW, IT'S DIFFICULT SITUATIONS TO HANDLE AT THIS POINT, ESPECIALLY WHEN YOU DEAL WITH THE COMPETITIVENESS WITH THE MARKET.
SO, UM, BEFORE THERE HAS BEEN A CONVERSATION ABOUT, UH, UNMET NEEDS, UH, I, I'M, I'M REALLY KIND OF INTERESTED IN, 'CAUSE SOME DEPARTMENTS COME UP AND THEY SAY WE'RE NOT ABLE TO DO X, Y, AND Z BECAUSE OF THE LIMITATIONS OR BECAUSE OF THE CUTS THAT WE'VE MADE.
AND I'M, I'M LESS CLEAR ON, ON HOW THAT IS, IS WORKING WITH THE, THE FINANCE DEPARTMENT.
SO I'M, I'M INTERESTED AND I'M CURIOUS ABOUT THESE KIND OF UNMET NEEDS FOR, FOR FINANCE.
AND THEN YOU HAD TALKED ABOUT A, A MARKET STUDY COMPARING TO MUNICIPAL EMPLOYEES.
I, UM, YOU SAID THAT WE HAD KIND OF LEVELED OUT LEGAL AND I'M, I'M WONDERING IF WE ARE COMPETITIVE, IF WE'RE LOOKING AT, UM, MUNICIPAL FINANCE EMPLOYEES.
AND I, I WANTED TO CIRCLE BACK TO THE OUTCOMES BASED BUDGETING BECAUSE I'M INTERESTED IN, UH, IF IT'S POSSIBLE, LIKE, WILL YOU MODIFY YOUR, YOU YOU HAD TALKED ABOUT CHANGING YOUR BUDGET CALENDAR DURING THE LAST PRESENTATION.
UM, SO I'M, I'M WONDERING IF YOU'LL BE MODIFYING IT TO BETTER INCORPORATE PUBLIC INPUT.
UH, FOR EXAMPLE, MANY CITIES HOLD PUBLIC WORKSHOPS BOTH BEFORE AND AFTER A PROPOSED BUDGET IS RELEASED TO REALLY GET THE COMMUNITY KNOWLEDGEABLE ABOUT WHAT'S IN THERE, UM, AND MAKE SURE THAT THEIR PRIORITIES ARE INCLUDED.
FIRST IS UNMET NEEDS SECOND COMPETITIVE BASED ON MUNICIPAL EMPLOYEES.
AND THEN THIRD ABOUT, UM, MODIFYING THE BUDGET CALENDAR AS WE SHIFT TO OUTCOMES-BASED BUDGETING.
CAN YOU SAY THE FIRST ONE AGAIN? UNMET NEEDS.
SO AGAIN, I MENTIONED IN SOME OF MY SLIDE ON THE FINANCE DEPARTMENTS.
WHAT WE DO IN THE FINANCE DEPARTMENT IS, UM, IS A LOT OF THAT IS ACTUALLY, UM, COM BIG COMPLIANCE WITH THE STATE AND, AND FEDERAL REGULATIONS, RIGHT? YOU'RE TALKING ABOUT THE, UM, THE PROCUREMENT, UM, TALKING ABOUT, AGAIN, THE, THE DEBT MANAGEMENT, MAKING SURE THAT WE ARE NOT, UM, MISMANAGING THOSE, UH, AND YOU DON'T WANNA HAVE ANY SITUATIONS WHEN WE ARE AT THE DEFAULT AT THIS POINT, UH, THE BUDGET, WHICH IS AGAIN, IS GOVERNED IN THE STATE AND LOCAL, UM, POLICIES, UH, AND AGAIN, THE GRANTS DISASTER RECOVERY, WHAT WE DO IS, IS ESSENTIALLY IS ESSENTIAL TO THE CITY.
AND SO I CANNOT SAY THAT I WOULD NOT BE MEETING THOSE FUNCTIONS BECAUSE THAT IS, UH, IT'S, IT'S, IT'S A MUST, UH, IN THAT SENSE.
UM, SO YEAH, I CANNOT SAY THAT I CANNOT MEET ANY, ANY DEMANDS BECAUSE THE DE THE, THE FUNCTION THAT WE DO ARE DIRECTLY AFFECTING, UM, OUT OF COMPLIANCE OF THE CITY, UH, TO THE STATE AND, AND, UH, LOCAL CHARTER.
[00:30:01]
IMPACT IS MAYBE, I DON'T KNOW, MAYBE A LATE, A LATE PAYMENT IF THAT IS THE CASE.BUT OF COURSE, IT, IT, IT, IT BITES YOU BACK BECAUSE THEN YOU HAVE TO PAY LATE FEES, FOR EXAMPLE, GOING BACK TO YOUR COMMENT, IT'S NOT UNMET NEEDS, BUT I PROBABLY WILL HAVE A DELAY.
I DON'T HAVE ENOUGH PEOPLE IN THE PROCUREMENTS, BUT YOU DON'T WANNA HAVE A WRONG PRODUCT BEING DELIVERED OR YOU DON'T WANNA HAVE A WRONG SCOPE BEING, UH, BEING WRITTEN.
UM, SO AGAIN, THOSE EXPERTISE IN, IN MY AREA IS VERY, VERY CRUCIAL BECAUSE WHAT WE DO IS GONNA BE AFFECTING THE ENTIRE CITY'S OPERATIONS.
UH, SO I CANNOT STRESS ENOUGH THE CITYWIDE FUNCTIONS THAT OUR DEPARTMENT'S HANDLES.
UM, SO THE LAST COMMENT YOU HAVE IS THE OUTCOME BASED BUDGETING.
WE WILL HAVE, AND I I THINK MR. JONES HAD MENTIONED TO YOU, WE DO HAVE TO PLAN HOUSTON, UH, PROCESS.
AND I THINK THE INPUT THAT WE WANT FROM THE PUBLIC IS THE PRIORITIES, EXACTLY WHAT DO YOU WANT TO SEE THE CITY, UH, SPEND THE DOLLARS.
UM, THE OUTCOME BASED BUDGETING IS JUST A VISION ON HOW IT, IT'S GONNA LOOK LIKE, BUT I THINK THE KEY THAT YOU ARE TRYING TO GET IS THE INPUT OF THE PUBLIC FOR THOSE PRIORITIES.
UH, AND I BELIEVE, I BELIEVE THAT IS ALREADY IN PLACE, BUT I CAN DOUBLE CHECK.
BUT THOSE ARE THE PRIORITIES THAT NEED SOME INPUT FROM THE PUBLIC.
NEXT SPEAKER IS MR. DOUG SMITH.
UM, I JUST WANNA GO BACK TO A QUESTION I ASKED EARLIER THAT DIDN'T GET ANSWERED.
WE, UM, WE RECEIVED $300 MILLION OF ARPA FUNDS AND WE'RE GONNA GET ANOTHER 300 MILLION.
AND THE THREE FIRST 300 MILLION WAS USED LAST YEAR.
AND IN THIS COMING BUDGET, IF I UNDERSTAND CORRECTLY, BUT YOU'RE ADDRESSING THE BUDGET GAP DOES NOT TAKE INTO CONSIDERATION THE NEXT 300 MILLION THAT WE'RE GONNA RECEIVE.
AND THEN IS THERE SOMEWHERE, UH, HOW YOU CALCULATED THE PROPERTY TAX? BECAUSE WHEN I LOOK AT THE, UH, PROJECTED INCREASE, IT'S 3.9% OVER 2022.
AND I THOUGHT THE STATE LAW, AND I DON'T KNOW THE STATE LAW, BUT I THOUGHT THE STATE LAW MANDATED TO 3.5% INCREASE.
SO I WOULD LIKE TO SEE HOW THAT CALCULATION WAS DONE.
AND FINALLY, UH, IN THE RAW DATA UNDER OTHER INTERFUND SERVICES, WHICH I UNDERSTAND YOU EXPLAINED, WELL, THERE'S REVENUES OF $7,400,000 AND WHERE DOES THAT REVENUE APPEAR IF IT DOES APPEAR IN PAGE, UH, SIX DASH 25 WHERE YOU LIST ALL OF YOUR REVENUES? THOSE ARE MY QUESTIONS.
SO I THINK, UM, CORRECT ME IF I'M WRONG, IF I GET IT RIGHT, UM, YOUR, YOUR QUESTIONS, THE ARPA DOLLAR THAT WE ARE RECEIVING OR TO BE RECEIVED IS $607 MILLION.
ABOUT $303 MILLION HAS BEEN RECEIVED LAST MAY.
ANOTHER 303 MILLION WILL BE RECEIVED SOMETIMES THIS MONTH.
AND SO, YEAH, SO THIS INCLUDES THE ALLOCATIONS OF ARPA OF 160 MILLION AT THIS POINT THAT CAME FROM THE FIRST TRANCHE, WHICH IS $303 MILLION.
AND THE NEXT 300 MILLION, YOU DID NOT TAKE THAT INTO CONSIDERATION WHEN YOU TALKED ABOUT ADDRESSING THE BUDGET GAP.
UH, YOU SAID THAT YOU DIDN'T INCLUDE THAT IN WHAT THE PROPOSED GAP MIGHT BE.
IS THAT A CORRECT STATEMENT? SO THE NEXT, THE NEXT TRANCHE, AGAIN, WE HAVE THE ONE SAFE HOUSTON, WE HAVE OTHER STUFF THAT HAS ALREADY BEEN, UM, UM, INCLUDED IN THE ARPA.
UM, AND I KNOW I INCLUDED, UM, PROJECTED GAP FOR FISCAL YEAR 24 WITH THE HOPE IS TO ALSO USE THE ARPA ARPA OF MONEY THEN.
BUT AGAIN, THAT WILL BE FROM THE SECOND TRANCHE.
AND CORRECT ME IF I'M WRONG, ARPA FUNDS CAN BE USED UNTIL DECEMBER 31ST, 2023.
YEAH, THE SECOND, IT'S THE YEAR 25 FOR US.
UM, THE SECOND QUESTIONS YOU HAVE IS ON, I BELIEVE, IS IT ON THE PROPERTY TAX CALCULATIONS? YES.
UH, BECAUSE YOU'RE SHOWING IT, UH, PROJECTED 3.9% INCREASE, AND I THOUGHT THE NEW STATE LAW MANDATED A 3.5% INCREASE.
AND I'D JUST LIKE TO UNDERSTAND, UM, AND HOW THAT PLAYS AGAINST OUR, OUR OWN PROPERTY TAX CAP.
SO, UM, SO I KNOW OUR PROPOSED BUDGET IS INCLUDING THE 4.28% INCREASE OF, OF THE, UM, UH, CPI, BUT REMEMBER WE ALSO HAVE THE 90 MILLION ON THE PROP H UM, AND I CAN, I CAN GO BACK TO YOU AGAIN TO RECONCILE, UM, YOU KNOW, THE 3.9699999999999998% VERSUS THE 4.23 OF THE CPI NUMBER.
BUT SOME OF THAT IS, COULD BE FROM THE, UM, UM, UM,
[00:35:01]
PROP H.WHAT ABOUT THE STATE CAP? IT'S THREE AND A HALF PERCENT, I THINK, IS, HOW DOES THAT PLAY INTO THIS? I WILL HAVE TO GET BACK TO YOU, UH, ON THOSE RESPON ON THOSE DETAILS ON THE CALCULATIONS.
I THINK THERE'S ALSO SOME OTHER ANNEXATIONS MAY BE INCLUDED IN THE FISCAL YEAR 22, UM, BUDGET.
UH, AGAIN, ANNEXATION IS ONLY WHEN IT'S AVAILABLE AND ONLY FOR 12 MONTHS.
YOU DON'T USE ANNEXATIONS EVERY SINGLE YEAR.
SO MAYBE SOME OTHER STUFF IN THE FISCAL YEAR 22 ESTIMATES.
JUST A REMINDER OF ANY ADDITIONAL QUESTIONS.
IF YOU WANNA SEND TO DISTRICT E@HOUSTONTX.GOV, WE WILL ANSWER 'EM AND GET BACK TO YOU.
A REMINDER TO THE COUNCIL MEMBERS, UM, COUNCIL MEMBERS SHOULD SUBMIT ANY DEPARTMENT BUDGET WORKSHOP QUESTIONS IN A WORD DOCUMENT AND WE'LL UPLOAD THAT TO SHAREPOINT AND DEPARTMENTS HAVE DIRECTED TO BEEN DIRECTED TO PROVIDE RESPONSES WITHIN 48 HOURS OF THE CONCLUSION OF THEIR PRESENTATION.
UH, DEPARTMENT RESPONSES WILL ALSO BE UPLOADED ON SHAREPOINT AND GIVE US TWO MINUTES AND WE'LL TRANSITION.
AND MY APOLOGIES TO CHIEF PENA, CHIEF WEST, AND MS. MCHENRY, UH, FOR THE DELAY.
I'M SURE, UH, YOUR PRESENTATION WILL BE WORTH IT.
WE WILL TRANSITION AND, UH, VICE CHAIR ED POLLARD WILL BE SITTING HERE TWO MINUTES.