[Budget and Fiscal Affairs]
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IF THERE ARE ANY MEMBERS OF THE PUBLIC WHO ARE HERE IN PERSON AND WOULD LIKE TO PARTICIPATE IN THE PUBLIC COMMENT SECTION, THERE'S A SIGN IN SHEET AT THE FRONT TABLE, MARK MITCHELL, TO MY LEFT.TO YOUR RIGHT, WE WILL BE MONITORING THE PUBLIC SPEAKERS LIST, COUNCIL MEMBERS AND STAFF, PLEASE HOLD YOUR QUESTIONS UNTIL THE END OF THE PRESENTATION.
AT THIS TIME, I WANT TO WELCOME MR. BILL KELLY, DIRECTOR OF GOVERNMENT RELATIONS TO PRESENT THE LEGISLATIVE PRINCIPLES FOR THE 88TH SESSION OF THE TEXAS LEGISLATURE.
BILL WAS JUST RUNNING INTO THE OFFICE.
I THINK HE FORGOT HIS PRINTOUT.
WELL, LET'S, SO HE'LL BE, LET'S SKIP, LET'S SKIP HIM.
AND LET'S GO RIGHT TO THE, UM, UH, THE MOER MORNING GENTLEMEN.
AND DIRECTOR OF FINANCE, OFFICIALLY, MR. WILL JONES.
UM, MAYOR PRO TEM, UH, COUNCIL MEMBERS AND STAFF.
UH, THE CONTROLLER'S OFFICE IS PROJECTING AN ENDING FUND BALANCE OF 291.1 MILLION FOR FY 23.
THIS IS 57.7 MILLION LOWER THAN THE PROJECTION OF THE FINANCE DEPARTMENT.
THE DIFFERENCE IS DUE TO A 57.7 MILLION LOWER REVENUE PROJECTION BASED ON OUR CURRENT PROJECTION.
THE FUND BALANCE WILL BE APPROXIMATELY $118 MILLION ABOVE THE CITY'S TARGET OF HOLDING SEVEN POINT A 5% IN RESERVES.
THE FY 23 BEGINNING FUND BALANCE IS 16.7 MILLION HIGHER THAN THE FY 22 ENDING FUND BALANCE REPORTED IN THE JUNE 30TH, 2022 MONTHLY FINANCIAL REPORT.
AND THIS INCREASE IS DUE TO YEAR END ADJUSTMENTS TO REVENUES AND EXPENDITURES THAT WILL NOT BE FINAL UNTIL THE FY 22 COMPREHEN, UH, ANNUAL COMPREHENSIVE FINANCIAL REPORT IS PUBLISHED.
OUR PROJECTIONS ARE UNCHANGED FROM THE JULY, 2022 REPORT.
UH, WE ARE PROJECTING NO CHANGES IN ANY OF OUR, UH, ENTERPRISE FUNDS.
AND IF YOU LOOK AT OUR COMMERCIAL PAPER AND BONDS, ALL OF OUR AVAILABLE RATE DEBT IS WELL BELOW THE 20% THRESHOLD.
THIS IS THE TWO PLUS 10 FINANCIAL REPORT FOR THE PERIOD ENDING AUGUST 31ST, 2022.
PROJECTIONS ARE BASED ON TWO MONTHS OF ACTUAL RESULTS IN 10 MONTHS OF PROJECTIONS, BOTH OUR REVENUE AND EXPENDITURE PROJECTIONS REMAIN UNCHANGED FROM THE ADOPTED BUDGET AND PRIOR MONTH'S REPORT.
UH, WE'RE CURRENTLY PROJECTING THE ENDING FUND BALANCE OF 348.8 MILLION, WHICH IS 44.8 MILLION HIGHER THAN THE ADOPTED BUDGET, AND 15.1% OF EXPENDITURES, LESS DEBT SERVICE IN PAYGO.
THE FUND BALANCE IS 175.6 MILLION ABOVE THE TARGETED 7.5% OF EXPENDITURES EXCLUDING DEBT.
WE ARE PROJECTING NO FORECAST CHANGES IN THE ENTERPRISE FUNDS, SPECIAL FUNDS, AND OTHER FUNDS FROM PRIOR MONTHS REPORT.
SO WE'RE TWO MONTHS INTO THE FISCAL YEAR, WHICH DOESN'T PRESENT A GREAT PICTURE FOR US.
SO, UM, WE HAVE NO COUNCIL MEMBERS IN QUEUE.
UH, MY ONLY, UH, COMMENT WOULD BE PROBABLY NOT A QUESTION.
IT GOES TO CONTROL AROUND WHAT WE'VE BEEN TALKING ABOUT FOR MANY YEARS.
WE HAVE ANYWHERE FROM 118 MILLION TO 176 MILLION OVER THE 7.5.
WHAT A GREAT OPPORTUNITY IF THIS TREND CONTINUES TO PUT SOME MONEY IN THE OPEP TRUST ACCOUNT AND TO MAKE SURE THAT MAYBE FOR THE FIRST TIME, UH, IN MY TERM ON COUNCIL, WE PRESENT A STRUCTURALLY BALANCED BUDGET.
SO, ANY COMMENTS? YEAH, I, I THINK THAT'S EXACTLY, UH, A, A GREAT EXAMPLE OF USING THIS MONEY TO LOWER OUR LONG-TERM UNFUNDED LIABILITIES AS OPPOSED TO ADD TO THEM.
UM, JUST A ADDITIONAL COMMENT TO THAT, AS YOU KNOW, UM, UH, MAYOR PRO TEM, THE HEALTH BENEFITS FUND TENDS TO RUN A SURPLUS, AND WE HAVE, UM, RE ESSENTIALLY REBATED BACK MONEY TO THE GENERAL FUND FROM THE HEALTH BENEFITS FUND FROM THE EXCESS.
SO THAT'S ANOTHER SOURCE THAT MY OFFICE BELIEVES THAT, UH, WE COULD USE IN EXCESS OF THE FUND BALANCE THAT WE HAVE RIGHT NOW.
BUT I THINK EXACTLY RIGHT, YOU'RE ON POINT.
WE NEED TO BE LOOKING AT HOW WE LOWER OUR LONG-TERM UNFUNDED LIABILITIES, AND WE HAVE THIS MONEY, WE SHOULD, UH, YOU KNOW, WELCOME THAT OPPORTUNITY.
AND, AND COMMENTS ON THIS QUESTION AS WELL FOR EITHER YOU GENTLEMEN.
UM, I THINK 23 FISCAL YEAR 23, UM, IS GONNA BE A PRETTY GOOD YEAR.
I THINK THERE'S A CLIFF COMING AT US IN FISCAL YEAR 24.
ALL THE MONEY THAT WE RECEIVE FROM THE FEDERAL GOVERNMENT, ALL THE MONEY THAT WE RECEIVE FROM, UH, PRETTY SUBSTANTIAL PROPERTY AND SALES TAX REVENUE, UH, WHO KNOWS WHERE THIS INFLATION IS GONNA BE.
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CONTINUING TO RISE.SO ANY COMMENTS AFTER CONTROLLER, YOU AND I DISAPPEAR, UH, DIRECTOR JONES WILL BE HERE.
BUT ANY COMMENTS ON WHAT YOU SEE, UH, ON THE HORIZON? BECAUSE I THINK AFTER A NUMBER OF US LEAVE, INCLUDING MAYOR TURNER, THERE'S GONNA BE SOME SIGNIFICANT CHALLENGES FROM A MONETARY STANDPOINT.
SO I KNOW YOU'VE BEEN RAISING THE FLAG AND I KNOW, WILL YOU HAVE SOME SIMILAR THOUGHTS? OH, I'LL START JUST BECAUSE I KNOW THAT I'VE, UH, REITERATED THIS VERY POINT, UH, TIME AND TIME AGAIN AT THESE MEETINGS.
UH, WE HAVE A STRUCTURALLY IMBALANCED BUDGET, AND WHEN I TOOK OFFICE THAT AMOUNT, UH, WAS AROUND $150 MILLION.
UH, IF YOU LOOK AT THE FY 25, UH, ESTIMATES, UH, THAT, YOU KNOW, NUMBERS, UH, BASICALLY GONNA DOUBLE.
UM, ADDITIONALLY, WE'RE LOOKING POTENTIALLY AT A RECESSION NEXT YEAR, TO YOUR POINT, MAYOR PRO TEM.
AND, UH, WE STILL HAVE NOT RESOLVED THE PROPOSITION, UH, B FIREFIGHTER PAY PARITY.
SO, YOU KNOW, IT'S A POSSIBILITY THAT ALL THESE, THE, ALL THESE THREE THINGS HIT IN CONJUNCTION WITH, UH, THE, YOU KNOW, UH, ENDING OF THE FEDERAL FUNDING IN DECEMBER OF 2024.
SO, I AGREE, I THINK WE'RE GONNA BE, UH, YOU KNOW, IN FY 25, UH, FACING SOME PRETTY, UH, SIGNIFICANT CHALLENGES.
AND, AND, YOU KNOW, THAT'S THE BAD NEWS.
THE GOOD NEWS IS, AS WE DISCUSSED HERE TODAY, WE HAVE, UH, YOU KNOW, BETWEEN A HUNDRED AND, UH, 18 MILLION AND, YOU KNOW, THE 160 MILLION OR SO THAT THE FINANCE DEPARTMENT OVER OUR FUND BALANCE.
SO WE HAVE THE ABILITY NOW WITH THE SURPLUS OF MONEY TO START ADDRESSING THESE LONG-TERM CHALLENGES.
BUT, UM, I KNOW, UH, DIRECTOR JONES AND I, UH, RAN INTO EACH OTHER, UH, RECENTLY AND, UH, WAS VERY HAPPY TO HEAR THAT HE, HE'S ACTUALLY LOOKING AT, UH, SOME PLANNING AROUND THIS.
SO I WOULD LET HIM, UM, YEAH, YEAH, SO ABSOLUTELY, WE, WE KNOW THEY'RE GONNA BE CHALLENGES IN 25.
UM, AND FROM MY POINT OF VIEW, WE, WE, WE HAVE A REVENUE PROBLEM, NOT AN EXPENDITURE PROBLEM.
UM, AND SO DEFINITELY THE, THE FUND BALANCE THAT WE BUILT UP AND THAT WE'VE, EVERY YEAR WE'VE TRIED TO BUILD UP TO PREPARE US FOR, FOR SUCH SITUATIONS, BUT WE DEFINITELY HAVE TO LOOK AT OTHER OPTIONS TO BE PREPARED FOR, UH, FY 25.
AND I DEFINITELY PLAN ON, YOU KNOW, LOOKING AT WHAT OTHER OPPORTUNITIES TO BRING IN MORE REVENUE TO THE CITY.
WE KNOW WE HAVE A REVENUE CAP, AND THAT'S NOT, RIGHT NOW, THAT'S NOT AN OPTION.
SO WHAT OTHER SOURCES OF REVENUE CAN WE, CAN WE TAP INTO? UM, THE ANSWER IS NOT ALWAYS TO JUST CUT EXPENDITURES, BECAUSE RIGHT NOW WE'RE ALREADY STRETCHED THIN WITH, YOU KNOW, THE, THE PUBLIC SAFETY AND WITH SOLID WASTE.
AND WE CAN'T JUST ALWAYS RELY ON, WE HAVE TO CUT, UM, BECAUSE THEN WE WON'T BE ABLE TO PROVIDE THOSE SERVICES.
UM, SO DEFINITELY THAT'S, IT'S SOMETHING WE ARE LOOKING AT, EXPLORING ALL OPTIONS AS TO HOW WE CAN, UM, BRING MORE REVENUE INTO THE CITY OF HOUSTON.
AND THAT IS GONNA BE ONE OF MY TOP PRIORITIES, EXPLORING THOSE OPTIONS.
AND EVEN, YOU KNOW, WE'VE IMPLEMENTED QUITE A BIT FROM THAT LONG RANGE PLAN.
UM, I KNOW WE DON'T TALK ABOUT IT ENOUGH, BUT WE HAVE DONE QUITE A BIT FROM THAT.
AND I'LL CONTINUE TO LOOK AT SOME OPTIONS FROM THAT LONG RANGE PLAN TO WHERE WE CAN DO THINGS A LITTLE MORE EFFICIENTLY WITHOUT SACRIFICING SERVICES.
UM, SO THERE, THERE'S DEFINITELY PLANS TO TRY AND MITIGATE WHAT COULD POTENTIALLY BE HAPPENING BY FY 25.
AND, AND AS YOU MENTIONED, WE HAVE AN EXTREMELY HEALTHY FUND BALANCE RIGHT NOW, SO LET'S MAKE SURE WE DO IT THE RIGHT WAY.
I'D LIKE TO WELCOME COUNCIL MEMBER DAVID ROBINSON AND COUNCIL MEMBER CAROLYN, CAROLYN, EVAN SHABAZZ, WHO HAVE JOINED US.
I HAVE A COUPLE OF QUESTIONS THAT CAME FROM A, UH, ONE OF OUR PUBLIC SPEAKERS, SO I'LL GO THROUGH THOSE REAL QUICK.
UH, SINCE WE HAVE, UH, I HOPE PROBABLY MORE TIME THAN WE NEED, UM, ONE OF THE QUESTIONS WAS ABOUT BOND AUTHORIZATION IN THAT 16 YEARS AGO, $15 MILLION FROM A BOND ISSUE 10 YEARS AGO.
WE HAVE 398 MILLION FROM A BOND ISSUE.
FIVE YEARS AGO THEY WERE AUTHORIZED, BUT UN ISSSUED.
SO THE QUESTION CAME AS, WHY DO WE NEED ANOTHER BOND THIS YEAR? AND REMEMBER, THE BOND DOES NOT, UH, CAUSE A TAX INCREASE.
SO ANYTHING FROM YOUR PERSPECTIVE? NO, I CAN TAKE THAT QUESTION.
SO IF YOU LOOK AT, UM, BACK IN 2006, THE, THE MAJORITY OF WHAT'S, UH, UNISSUED IS FOR STREET AND DRAINAGE, I THINK ABOUT OVER 200 MILLION.
AND SINCE WE NO LONGER ISSUE DEBT FOR STREET AND DRAINAGE, THAT'S WHY YOU'LL SEE THAT AMOUNT.
SO THAT DOES NOT IMPACT OUR CURRENT BOND ELECTION.
AND THEN WHEN YOU LOOK AT 2012 AND 17, UH, THE MAJORITY OF WHAT'S REMAINING, I BELIEVE IT'S GONNA BE LIKE IN LIBRARIES AND PARKS, WHICH IS PART OF THE REASON WHY THE ELECTION FOR THIS YEAR IS NOT, IT'S 468 MILLION, WHICH IS COMPARED TO, YOU KNOW, LIKE THE COUNTY OR OTHER ENTITIES, LIKE ONE POINT SOMETHING BILLION THAT THEY'RE GOING OUT FOR.
IT'S RELATIVELY, UM, A SMALL AMOUNT FOR BOND ELECTION.
AND SO WHAT'S NEEDED, UM, ABOUT 200 PLUS MILLION IS NEEDED TO COVER THE EXISTING CIP.
SO WHEN YOU LOOK AT, UM, THE 2017,
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AND YOU MAY SEE ABOUT 300 MILLION REMAINING, UH, WELL THAT'S ALL KIND OF ENCUMBERED FOR THE EXISTING CIP.AND THEN BEYOND THAT, WE WOULD NEED ADDITIONAL 200 MILLION.
SO YOU WILL SEE SOME AMOUNTS, AND WE DO, IF YOU COMPARE THE REPORT, UH, THIS MONTH TO LAST MONTH, YOU'LL SEE THAT WE ARE STILL DRAWING DOWN ON THAT 2012 BOND ELECTION.
UM, AND AGAIN, THE REASON WHY, UM, IS BECAUSE WE STILL HAVE PARKS LIBRARIES THAT WE'RE STILL DRAWING MONEY DOWN FROM THAT, WHICH IS WHY THE CURRENT BOND ELECTION IS NOT AS HIGH.
SO AUTHORIZED, ENCUMBERED, BUT NOT SPENT YET.
UM, THERE ARE NO OTHER COUNCIL MEMBERS IN QUEUE.
WE'LL MOVE ON TO OUR NEXT PRESENTATION, MR. JONES, DIRECTOR JONES.
AT THIS TIME, I'D LIKE TO WELCOME MR. BILL KELLY, DIRECTOR OF GOVERNMENT RELATIONS TO PRESENT THE LEGISLATIVE PRINCIPLES FOR THE 88TH SESSION OF THE TEXAS LEGISLATURE.
MAYOR PROAM AND COUNCIL MEMBERS AS OUR DIRECTOR OF GOVERNMENT RELATIONS SINCE 2016.
THIS WILL BE MY FOURTH AND FINAL TIME REPRESENTING THE CITY OF HOUSTON IN AUSTIN BEFORE THE TEXAS LEGISLATURE.
BEFORE EACH SESSION, MEMBERS OF OUR GOVERNMENT RELATIONS TEAM WORK TO PUT TOGETHER A DOCUMENT OF LEGISLATIVE PRINCIPLES THAT WILL GUIDE OUR TEAM IN ADDRESSING THE OVER 7,000 BILLS THAT ARE FILED ANNUALLY IN AUSTIN.
UH, LAST SESSION ALONE, THE CITY OF HOUSTON ANALYZED MORE THAN 2,100 PIECES OF LEGISLATION AND ACTIVELY TRACKED MORE THAN 1,700 BILLS THAT WOULD AFFECT CITY SERVICES.
THIS HERCULEAN TASK IS TAKEN UP BY OUR LEGISLATIVE MANAGER, ANDY MATE, WHOSE EXPERIENCE AND INSIGHT IS SIMPLY UNMATCHED.
ANDY REGULARLY CATCHES CONSEQUENCES IN BILLS THAT EVEN THE LEGAL TEAMS AT THE TEXAS MUNICIPAL LEAGUE SOMETIMES MISS.
BUT MORE IMPORTANT THAN HER OWN KNOWLEDGE, ANDY TAKES THE LEAD IN ORGANIZING OUR LEGISLATIVE LIAISONS WITHIN CITY DEPARTMENTS.
THESE LIAISONS COORDINATE DIRECTLY WITH THE GR TEAM IN PRODUCING ANALYSIS WITH SPECIFIC HOUSTON IMPACTS.
QUITE LITERALLY, THEY ARE THE SUBJECT MATTER EXPERTS WHO HELP EDUCATE AND BETTER INFORM OUR GOVERNMENT RELATIONS TEAM ON LEGISLATIVE CONSEQUENCES, BOTH GOOD AND BAD WITH EACH PIECE OF PROPOSED LAW.
THE LEGISLATIVE PRINCIPLES THAT YOU HAVE BEFORE YOU TODAY COME FROM THE PERSPECTIVE OF OUR DEPARTMENTAL LIAISONS AS THEY HELP TO CONVEY TO OUR GR TEAM WHAT ACTIONS ARE NECESSARY TO TAKE.
WHILE WE'RE IN AUSTIN, COUNCIL LAST PASSED THESE PRINCIPLES ON DECEMBER THE NINTH, 2020, BEFORE THE 87TH SESSION.
TODAY'S DOCUMENT IS LITTLE CHANGED FROM WHAT WAS PREVIOUSLY PASSED.
WHAT THE GR TEAM HAS TRIED TO BUILD UP TO GIVE EVEN MORE TRANSPARENCY FOR BOTH COUNCIL MEMBERS AND THE GENERAL PUBLIC IS THE ONLINE REPORTS AND ARCHIVE THAT WE'VE CREATED WITH OUR LEGISLATIVE REPORTS.
IN FACT, FOR THE FIRST TIME IN 2021, THE CITY OF HOUSTON WAS ABLE TO POST EVERY SINGLE PIECE OF WRITTEN TESTIMONY THAT WE SUBMITTED TO THE TEXAS LEGISLATURE TO BE PUT UP ONLINE.
I WANNA THANK BOB NOACK FOR HIS PATIENCE AND WORK TO CONTINUALLY POST THESE DOCUMENTS AND FOR CONTINUING TO OPEN MY EMAILS, WHICH I'M SURE ARE PROBABLY NOT HIS FAVORITE.
THE PROCESS HAS CONTINUED DURING THE INTERIM WITH THE LATEST PIECE OF TESTIMONY COMING FROM LIEUTENANT JULIE PLEASANT WITH THE HOUSTON POLICE DEPARTMENT, DETAILING REPORTING ISSUES FOR DOMESTIC VIOLENCE TO THE TEXAS HOUSE COMMITTEE ON JUVENILE AND FAMILY ISSUES ON SEPTEMBER 23RD.
THE COMBINATION OF THESE LEGISLATIVE PRINCIPLES AND THE TRANSPARENCY OF OUR OWN WRITTEN TESTIMONIES IS NOT DONE BY ANY OTHER CITY IN TEXAS.
I BELIEVE THIS LEVEL OF PUBLIC ACCESSIBILITY TO INFORMATION THAT WAS, HAS HELPED HOLD BACK CRITICS WHO WISH TO SEE THE POWERS OF LOCAL GOVERNMENT TO ADVOCATE IN AUSTIN FURTHER RESTRICTED.
SIMPLY PUT, ONCE PEOPLE SEE WHAT WE DO, THEY GET IT AND THEY APPRECIATE IT.
ADDITIONALLY, I ALSO WANT TO THANK MEMBERS OF OUR LEGISLATIVE AD HOC GROUP WHO HAVE REVIEWED THE CITY'S KEY LEGISLATIVE PRIORITIES FOR THIS YEAR.
THAT GROUP SPENDS A CONSIDERABLE AMOUNT OF TIME AND ENERGY LISTENING TO DEPARTMENTS ON WHAT CHANGES THEY NEED TO MORE EFFECTIVELY AND EFFICIENTLY OPERATE.
I AM VERY PROUD OF THE RESULTS THAT WE HAVE ACHIEVED TOGETHER, COMBINED WITH OUR ONLINE LEGISLATIVE REPORTS.
I BELIEVE THE CITY OF HOUSTON IS ABLE TO OFFER THE MOST COMPLETE PICTURE OF, OF ANY ENTITY THAT WORKS BEFORE THE STATE LEGISLATURE, THE LEGISLATIVE PRINCIPLES BEFORE YOU REFLECT HOW WE THINK ABOUT APPROACHING THE MYRIAD OF LEGISLATION THAT COMES OUR WAY AND OFFERS PUBLIC ACCOUNTABILITY FOR OUR EFFORTS.
WITH THAT, I'M HAPPY TO TAKE ANY QUESTIONS YOU HAVE ON THE LEGISLATIVE PRINCIPLES, AND THANK YOU, DIRECTOR KELLY, IF YOU WOULDN'T MIND, UH,
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INTRODUCING, UH, I KNOW ALEXIS BACK THERE.SO, UM, IF PEOPLE THINK THAT YOU DON'T DO ANYTHING WHILE THERE IS A STALL IN THE LEGISLATIVE PROCESS THAT DON'T, DOESN'T PICK UP UNTIL JANUARY OF NEXT YEAR.
UM, YOU AND ALEXA AND MYSELF AND, UM, RECOVERIES, ZA COSTELLO TOOK A TRIP TO WOODLANDS YESTERDAY TO TALK TO ONE OF OUR STATE SENATORS ABOUT ONE OF OUR LEGISLATIVE PRIORITIES THAT WE NEED.
AND WE'RE GONNA BEGIN LAYING THE GROUNDWORK.
UH, WE CAME AWAY, UH, VERY ENTHUSIASTIC.
I ACTUALLY TALKED WITH OUR STATE REPRESENTATIVE THIS MORNING ABOUT IT, AND HE KNOWS WHAT HE NEEDS TO DO IN THIS PROCESS AS WELL.
SO, UH, WE HAVE QUESTIONS FROM STAFF, FROM COUNCIL MEMBER.
WELL, FIRST WE'LL GO TO VICE CHAIR ED POLLARD.
THANK YOU, MAYOR PROTO, AND GOOD MORNING TO EVERYONE.
DIRECTOR, THANK YOU FOR BEING HERE.
UH, WANTED TO SEE IF YOU COULD HIGHLIGHT SOME OF THE, UH, PRINCIPLES THAT WE HAVE, UH, FOR THE UPCOMING LEGISLATIVE SESSION.
AND THEN A QUESTION, UH, TO FOLLOW IS, CURRENTLY HOUSTON, WE'RE UNDER TWO, UH, PROPERTY TAX REVENUE CAPS, CORRECT? THAT'S CORRECT.
I BELIEVE WE'RE THE ONLY CITY THAT IS RESTRICTED TO THOSE TWO.
UH, IS THERE ANY PUSH FOR US TO BE IN LINE WITH ALL THE OTHER CITIES SO THAT WE'RE ONLY UNDER ONE? AND IF SO, IS THAT BENEFICIAL? 'CAUSE I KNOW SOMETIMES IT MAY BE BENEFICIAL TO BE, UH, HAVING TO, BECAUSE, UM, THE CAP ISN'T AS RESTRICTIVE.
SO CAN YOU, CAN YOU EXPLAIN THAT FOR THE PUBLIC AS WELL? SURE.
LET ME TAKE YOUR SECOND QUESTION FIRST ON A, SPECIFICALLY ON THE, UH, DUALITY OF OUR VOTER IMPOSED VERSUS OUR STATE REVENUE CAP.
UM, OUR 2019 LEGISLATIVE REPORT ACTUALLY DOES A GOOD JOB ON THIS ISSUE ON SENATOR BETTEN COURT'S SB TWO.
UH, WHEN SB TWO WAS WRITTEN, WE WORKED WITH, UH, REPRESENTATIVE JIM MURPHY, UH, ON AN AMENDMENT TO SAY, IF WE ARE GOING TO HAVE A STATEWIDE RESTRICTION AT 3.5%, IT WOULD MAKE SENSE TO HAVE THAT BE THE RESTRICTION THAT HOUSTON IS UNDER.
SO WE'RE ON A LE LEVEL PLAYING FIELD WITH EVERYBODY ELSE.
UH, SENATOR BETTENCOURT AND I RECENTLY HAD A CENTER, UH, SENATE LOCAL GOVERNMENT COMMITTEE HEARING, HAD A DIFFERENCE OF OPINION, UH, ABOUT THAT HIM THINKING VOTERS, THIS, IT'S ONLY VOTERS WHO SHOULD BE ABLE TO DISAPPROVE IT, WHICH I CAN APPRECIATE.
HOWEVER, I THINK OUR TRANSPARENCY IN BEING ABLE TO SHOW OUR REPORT IN 2019, UH, THE HOUSE CHAIRMAN OF WAYS AND MEANS, UH, CHAIRMAN BURROUGHS ACTUALLY DID AN ANALYSIS OF HOW HOUSTON'S VOTER, UH, IMPOSED REVENUE CAP WAS AFFECTING PROPERTY TAX REVENUES.
AND HIS ANALYSIS, AGAIN, THESE WEREN'T OUR NUMBERS, THEY WERE HIS, WE LIST THEM ON THE WEBSITE SHOW, YOU KNOW, NUMBERS FROM ONE IN 2%, AND IN HIS VIEW THAT THAT WASN'T ABLE TO MEET THE NEEDS OF, OF MUNICIPALITIES GOING FORWARD.
SO HE WANTED TO BE ABLE TO DO THE THREE FIVE NUMBER.
UH, AND SO WHAT WE DID WITH REPRESENTATIVE MURPHY TO SAY, IN THE EVENT THE STATE PASSES SB TWO CITY OF HOUSTON WOULD THEN, UH, UH, HAVE OUR LOCAL, UH, REVENUE CAP DISSOLVED.
THE STATES WOULD TAKE PRECEDENT OVER IT.
SO WE WOULD BE ON A LEVEL PLAYING FIELD WITH EVERYBODY ELSE.
I THINK WHAT SENATOR BETTEN COURT FAILED TO TAKE INTO ACCOUNT IN OUR EXCHANGE WAS I DIDN'T FILE THAT AND GET THAT FILED AS A STANDALONE PIECE OF LEGISLATION THAT ONLY CAME WITH AN AMENDMENT ON SB TWO, MEANING THAT IF SB TWO WOULDN'T HAVE PASSED, YOU KNOW, THAT AMENDMENT WOULDN'T HAVE GONE THERE.
UNFORTUNATELY, SENATOR BETTEN COURT, UH, DID NOT ACCEPT THAT AMENDMENT.
AND SO NOW WE ARE UNDER BOTH REVENUE CAPS, UM, WHICH, WHICH KIND OF GIVES US THREE DIFFERENT WAYS.
WE HAVE EITHER THE POPULATION PLUS INFLATION NUMBER, THE 4.5%, OR THE 3.5%.
AND, YOU KNOW, I'LL LEAVE IT TO THE, UH, UH, FINANCE TEAM, WHICH IS THE SUBJECT MATTER EXPERTISE ON IT.
BUT THAT'S NO WAY TO RUN A RAILROAD.
I MEAN, IT'S, IT'S LITERALLY PRETTY CUMBERSOME.
SO THE BIGGEST THING THAT I THINK WE CAN DO AS THE GOVERNMENT RELATIONS TEAM IS TO BE ABLE TO PROVIDE THAT INFO, UH, MAKING IT ACCESSIBLE ONLINE, MAKE IT, UH, IN A WAY THAT'S NOT OVERLY JUMBLED IN LEGAL SPEAK, BUT TO BE ABLE TO KIND OF CLEARLY LAY OUT DIFFERENT EXAMPLES.
SO THAT'S WHAT WE TRIED TO DO ON, ON REV CAP, IF THAT'S HELPFUL.
OH, WE'RE GONNA TRY TO FIND ANOTHER AUTHOR THIS SESSION TO, TO PUSH THAT TYPE OF AMENDMENT OR BILL AGAIN, OR DO YOU NOT SEE THAT IT'S GONNA GET ANY TRACTION? I, I, I DON'T SEE IT AS GETTING ANY TRACTION THIS SESSION ON IT PARTICULARLY, BECAUSE IT WOULD NOW HAVE TO BE A STANDALONE PIECE OF LEGISLATION AS OPPOSED TO PART OF A COMPREHENSIVE STATEWIDE, UH, MEASURE.
SO WE THOUGHT IT MUCH MORE APPROPRIATE TO BE AN SB TWO, BUT, UM, THAT'S JUST, UH, THE WAY IT HAPPENED.
SO, BUT I, I WILL SAY THAT, UH, REPRESENTATIVE MURPHY'S AMENDMENT, WHICH WOULD'VE CODIFIED THAT WAS UNANIMOUSLY SUPPORTED BY EVERY SINGLE MEMBER OF THE TEXAS HOUSE.
SO THIS WASN'T SOMETHING THAT WE SAW AS, YOU KNOW, OVERLY CONTROVERSIAL.
IT JUST KIND OF MADE SENSE GIVEN, UH, THE TOPIC AREA THEY WERE DISCUSSING.
SO, UM, AND IN THAT YOU HAD ANOTHER QUESTION ABOUT THE LEGISLATIVE PRINCIPLES, UH, JUST KIND OF, UH, HIGH LEVEL, I THINK, UH, UM,
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THE NUMBER OF ISSUES THAT YOU AS COUNCIL MEMBERS HAVE SEEN US COME UP AND RAISE THE ALARM ON.UH, I KNOW, UH, COUNCIL MEMBER BROMAN, FOR EXAMPLE, WHEN WE'RE TALKING ABOUT THE RIGHT OF WAY FEES THAT THE CITY HAS FOR DIFFERENT, UH, UH, CABLE, UM, UH, INSTANCES, UH, THAT'S ADDRESSED IN THERE WITH REGARDS TO, UH, BEING ABLE TO EFFECTIVELY CONTROL OUR RIGHT OF WAY.
WE REALLY TRY TO GIVE SUMMARIES OF THE THINGS THAT WE WORK ON WITHIN THE PRINCIPLES.
SO I HOPE THAT THAT'S KIND OF AN ACCURATE REFLECTION.
WHEN YOU READ DOWN IT, YOU'RE LIKE, OH YEAH, I REMEMBER THE GR TEAM BEING ABLE TO BRING UP X, Y, Z ON IT.
SO THAT, THAT'S REALLY WHAT THE PURPOSE OF THE PRINCIPLES ARE, IS TO BE ABLE TO HAVE A, A LEVEL OF ACCOUNTABILITY TO SAY, THIS IS WHAT WE ARE DOING WHILE WE'RE IN AUSTIN ON IT.
BEFORE WE GO TO COUNCIL MEMBER ROBINSON, UH, WE'VE BEEN JOINED BY STAFF FROM COUNCIL MEMBER LETITIA PLUMMER'S OFFICE AND STAFF FROM COUNCIL MEMBER MICHAEL KNOX'S, OFFICE COUNCIL MEMBER ROBINSON.
AND, UM, GREAT TO HAVE YOU HERE, BILL, THANKS FOR ALL YOU DO AND YOUR TEAM WHO'S WITH US.
I KNOW Y'ALL ARE INCREDIBLE, ANDY AND, AND EVERYBODY.
UM, SO THANKS FOR ALL OF THAT.
I WANNA PICK UP ON WHAT, UH, COUNCIL MEMBER POLLARD, OUR VICE CHAIR WAS ASKING, UM, WITH SOME OF THE RESTRICTIONS AND THE REVENUE CAPS, AND JUST PUT THAT IN THE LIGHT BILL, IF YOU COULD, OF WHAT THE CONTROLLER AND WHAT, UM, OUR NEW DIRECTOR OF FINANCE HAVE BEEN TALKING ABOUT THIS MORNING, THE SURPLUS FUNDS THAT WE'VE GOT HERE AT THE CITY, AND SOME OF WHAT WE'VE HEARD LATELY, UM, NOT ON ONLY FROM OUR CONTROLLER THIS MORNING, BUT FROM THE COMPTROLLER AT THE STATE, AND JUST SOME OF THE ENORMOUS SURPLUS FUNDS THAT THE STATE OF TEXAS IS NOW ENJOYING.
AND, UM, THIS MAY BE LESS OF AN OFFICIAL POLICY AND ASKING FOR YOU TO COMMENT WITH THE NARRATIVE.
UM, WHAT DO YOU THINK THIS SETS UP FOR US IN TERMS OF, UH, FUNDING ACROSS THE STATE OF TEXAS, ESPECIALLY IN LIGHT OF SOME OF THE CHALLENGES THIS LARGE CITIES ARE FACING? LET ME, LET ME DO, UH, ANSWER THAT IN TWO WAYS WITH IT.
UH, FIRST WAS ONE OF THE PROVISIONS THAT THE MAYOR ACTUALLY ASKED THAT WE ADD TO, UH, TO THIS YEAR'S, I BELIEVE IT IS ON, IT'S THE SECTION ON, UH, EDUCATION, UH, WHICH WE HAD UPDATED.
UH, THE FIRST LINE THERE, SUPPORT STATE CONTRIBUTION TO THE COST OF PUBLIC EDUCATION RETURNING TO 60%, WHICH WOULD ALLOW LOCAL IDS TO LOWER PROPERTY TAXES.
THAT WAS SOMETHING THAT THE MAYOR WANTED TO BE ABLE TO PUT ON THERE.
SIMPLY SAYING, WHEN, WHEN HE SERVED IN THE LEGISLATURE, STARTING IN THE, UH, LATE 1980S, UH, THE STATE CONTRIBUTION FOR THE COST OF PUBLIC ED WAS MUCH HIGHER, UH, THAN IT IS TODAY.
AND THE STATE ACTUALLY REALLY DOES HAVE A PERVERSE INCENTIVE WHEN THEY LOWER, WHEN THEY, WHEN THE LOCAL AMOUNTS OF, UH, PROPERTY TAX COLLECTION FOR ISDS INCREASE THE STATE CONTRIBUTION DECREASES.
AND HAVING DECREASING COST IS DEFINITELY SOMETHING THAT, YOU KNOW, A, A BODY WOULD WANT TO GO INTO, RIGHT? IT'S, IT'S NOT AS BIG OF AN EXPENDITURE.
SO BEING ABLE TO SAY THAT PUBLIC SUPPORT NEEDS TO DRASTICALLY INCREASE SO THAT THE LEVY THAT LOCAL ISDS ARE IMPOSING ON PROPERTY TAXPAYERS, UH, CAN BE ADDRESSED ON THERE.
SO THAT'S ONE WAY WHEN WE HAVE $27 BILLION, UH, THAT YOU, YOU MIGHT BE ABLE TO EFFECTIVELY, UH, UH, LOOK AT WHAT THOSE, THOSE TAX RATES ARE FOR, UH, A NUMBER OF FOLKS.
THE OTHER THING I'LL POINT TO ON EDUCATION IS A PROVISION WE PUT IN THERE.
I WANNA SAY MAYBE IN 2017 WHEN HISD OFFICIALLY ENTERED A RECAPTURE OR THAT DEBATE WAS GOING ON, UM, BEING ABLE TO SPECIFICALLY STATE, UH, THAT, UH, LET'S SEE, I, I THINK IT'S THE 1, 2, 3, 4 FIFTH, UH, ITEM UNDER EDUCATION SUPPORT REFORMS TO THE STATE'S EDUCATION FINANCE SYSTEM THAT HALT THE PRACTICE OF REQUIRING RECAPTURE FUNDS FOR URBAN SCHOOL DISTRICTS THAT ARE DEEMED PROPERTY WEALTHY, BUT HAVE A HIGH, UH, PROPORTION OF ECONOMICALLY DISADVANTAGED STUDENTS.
BASICALLY SAYING, TAKING MONEY FROM HISD AND AND OTHER AREAS DOESN'T MAKE SENSE, UH, WITH REGARDS TO STATE FINANCING FORMULA.
SO I'M HOPEFUL OUR LAWMAKERS WILL PURSUE, YOU KNOW, BEING ABLE TO USE A NUMBER OF, OF, OF OUR FUNDS TO, TO HELP WITH PUBLIC ED.
BUT THE SECOND THING THAT I'D BRING UP AND IS FRANKLY THE REASON THAT I HAVE THIS POSITION, I WAS NOT A, I'VE NEVER BEEN A LOBBYIST.
UH, THE REASON THE MAYOR HIRED ME IS BECAUSE I WORKED FOR MENTAL HEALTH AMERICA, UH, AND MY, UH, PASSION TO BE ABLE TO HELP WITH THINGS LIKE BEHAVIORAL HEALTH.
UH, OUR STATE, AND I WANNA BE CLEAR, HAS MADE TREMENDOUS PROGRESS.
PEOPLE LIKE SENATOR JANE NELSON, UM, UH, LONGTIME, UH, STATE REPRESENTATIVE, GARNET COLEMAN REPRESENTATIVE FOR PRICE, UH, REALLY BEING ABLE TO, TO DIG IN TO FIND PROBLEMS WITH OUR STATE.
BUT OUR STATE REMAINS 51ST IN THE NATION WITH ACCESS TO MENTAL HEALTH.
AND THAT'S CHAIR, I WANT TO THANK YOU FOR A LITTLE LATITUDE ON BOTH COUNCIL MEMBER POLLARD'S QUESTION IN MIND.
'CAUSE OBVIOUSLY WE'VE GOT A WEALTH OF INFORMATION FROM BILL AND NOT WANTING TO GET TOO MUCH BACK IN THE QUEUE BILL, BUT THANKS FOR TOUCHING ON ALL THAT.
I HOPE THAT'S HELPFUL ON THE CHANGES THAT WE PUT IN THERE.
[00:25:01]
AND I TOTALLY AGREE WITH WHAT YOU STATED ABOUT SCHOOL TAXES, BUT MORE RELIEF FOR SCHOOLS ONLY IF THEY LOWER THE PROPERTY TAX.'CAUSE EVERY YEAR I SHARE MY TAX BILL AND I SHARE IT AGAIN THIS YEAR.
AND THE NUMBER OF TOTAL TAX DOLLARS THAT I PAY, WHICH IS GONNA BE VERY SIMILAR TO EVERYONE IN THE AUDIENCE AND EVERYONE WATCHING THE SCHOOL TAX COMPONENT OF IT FOR ME, IS 56%.
56% OF MY TAX DOLLARS I PAY EVERY YEAR GOES TO MY ISD 19%, GOES TO THE CITY OF HOUSTON 56, TO THE ISDS 19, TO THE CITY OF HOUSTON.
AND AS A FORMER SCHOOL BOARD MEMBER, I FIND THAT APPALLING BECAUSE NO ONE CALLS THEIR SCHOOL DISTRICT TO COMPLAIN ABOUT THEIR TAXES.
NO ONE IN THE STATE LEGISLATURE HAS ANY IDEA ABOUT CAPPING PROPERTY TAXES FOR SCHOOL DISTRICTS.
BUT THEY SURE AS HECK CALL US AND COMPLAIN.
AND THE STATE LEGISLATIVE SURE AS HECK HAND HANDCUFFS US ON WHAT WE CAN AND CANNOT DO.
MEANWHILE, THERE ARE TWO VARIABLES TO YOUR TAXES.
ONE IS CONTROLLED, AND THAT IS RATE ONE IS NOT CONTROLLED, AND THAT IS VALUE.
AND WHEN YOU LOOK AT YOUR TAX BILLS, THE VALUATIONS ARE OUT OF THE NORM.
SO PLEASE LOOK AT YOUR BILLS AS WE CLOSE IN ON CALENDAR YEAR 2022 IN THE NEXT COUPLE OF MONTHS, BECAUSE I'LL REPEAT 56% OF MY DOLLARS GO TO MY ISD AND 19% GO TO THE CITY.
BUT I NEVER HEAR ANYONE COMPLAINING ABOUT ISD TAXES, AND I NEVER SEE ANYONE SHOWING UP FOR THEIR ELECTIONS.
STAFF FROM COUNCIL MEMBER SALLY ALCORN'S OFFICE, THANK YOU MAYOR PRO TEM.
UM, SWITCHING GEARS, UM, TO TALK ABOUT NEIGHBORHOOD AND IMPROVEMENT IN QUALITY OF LIFE, YOU KNOW, AS CHAIR OF REGULATORY NEIGHBORHOOD AFFAIRS, WE HAD THAT MEETING IN JULY ABOUT PROHIBITED YARD PARKING MM-HMM
UM, AND THAT'S SOMETHING THAT SALLY WOULD LOVE TO HELP WITH IN THE NEXT ALLEGED SESSION.
HAPPY TO TESTIFY AND KEEP MOMENTUM GOING ON THAT.
UM, WE'VE ALSO BEEN TALKING WITH RESIDENTS ABOUT PERIMETER FENCING THAT WAS ALLOWED IN A SENATE BILL LAST YEAR IN CONFLICT WITH DEED RESTRICTIONS.
PEOPLE STILL ALLOWED TO PUT UP METAL FENCES UP TO EIGHT FEET, AND NO ONE KNOWS WHAT'S GOING ON BEHIND THERE.
SO LOOKING AT THAT IS SOMETHING THAT WE'D BE INTERESTED IN WORKING WITH Y'ALL ON.
ONE, UH, I BELIEVE THAT STATE REPRESENTATIVE GENE WU COULD PROBABLY QUOTE THE YING BILL WORD FOR WORD NOW GIVEN THAT HE'S CARRIED IT SO MANY TIMES WITH US.
UH, BUT THE SECOND PART, I THINK BRINGS UP A, A, A, A GOOD NUANCE THAT YOU NOTICE IN A CITY WITHOUT LAND USE REGULATION, THE IMPORTANCE OF DEED RESTRICTIONS FOR US AT THE CITY OF HOUSTON IS REALLY PARAMOUNT, UH, AS, AS WE, UH, LOOK WITH OUR LEGISLATIVE LIAISONS AND DEPARTMENT OF NEIGHBORHOODS AND OTHERS.
SO, UM, UH, AND ESPECIALLY OUR LEGAL DEPARTMENT, I KNOW WE'VE HAD, UH, SOME BACK AND FORTH OVER THE INTERIM WITH REGARDS TO HOW THE STRUCTURE OF BEING ABLE TO CHANGE DEED RESTRICTIONS, UH, COULD KIND OF LOOK WITH IT.
BUT AS ALWAYS, THAT'S, THAT'S A HUGE PART.
AND UNDERSTANDING THE PRIORITY, ESPECIALLY IN HOUSTON, THAT DEED RESTRICTIONS PLAY IS, IS A VERY BIG DEAL FOR US.
SO HAPPY TO BE ABLE TO WORK WITH YOU.
AND JUST A REMINDER THAT TOMORROW AT OUR COUNCIL MEETING, WE WILL BE LOWERING OUR TAX RATE ONCE AGAIN.
AND I THINK THIS IS EIGHT OUT OF NINE YEARS, CORRECT ME IF I'M WRONG.
UH, ONCE AGAIN, WE WILL LOWER OUR TAX RATE AND WE WILL HAVE TO READ, OR I WILL HAVE TO READ A SECTION THAT SAYS WE ARE INCREASE IN TAXES.
THAT'S BECAUSE ON THE VALUATION SIDE, WHILE WE LOWER THE TAX RATE, THE VALUATIONS CREEP UP HIGHER, AND THUS THE NUMBER OF TAX DOLLARS WE DO RECEIVE IS OVER THE AMOUNT THAT RECEIVED IN 2021.
SO DO YOU WANNA MENTION WHO SETS THAT RATE? JUST FOR THE RECORD, WHO SETS THE RATE? WHO SETS THE PROPERTY VALUE? THE STATE OF TEXAS.
COUNCIL MEMBER STAFF FROM COUNCIL MEMBER MICHAEL MONK'S OFFICE.
UM, FOLLOWING UP ON THE MAYOR PRO TIM'S COMMENTS, AND YOU WERE SHAKING YOUR, OR NODDING YOUR HEAD IN AGREEMENT.
DOES THE ADMINISTRATION SUPPORT PLACING A CAP ON SCHOOL TAXES OR THE, THE INCREASE WE HAVE NOT WEIGHED IN, UH, WITH REGARDS TO, UH, THE ABILITY FOR SCHOOL DISTRICTS, UH, OTHER THAN, UH, LOOKING AT THE LOCAL CONSEQUENCES WE'VE HAD WITH HISD ON IT, I'D SAY THE, THE AFFIRMATION I WANTED TO MAKE SURE AND GIVE MAYOR PRO TEM ON IT WAS THE MINORITY OF PROPERTY TAXES THAT
[00:30:01]
ARE PAID ON YOUR BILL THAT ACTUALLY GO TO YOUR MUNICIPAL GOVERNMENT, PARTICULARLY IN HOUSTON.WHERE, WHERE PEOPLE ARE OFTEN THEY SEE THEIR PROPERTY TAX BILL AND, AND I THINK VERY CORRECTLY, THEY DON'T IDENTIFY THEIR ISD AS THEIR BIGGEST COBRA.
AND I THINK OUR RECORD ON PROPERTY TAX RATES ARE, YOU KNOW, I'D PUT IT UP AGAINST ANYBODY.
AND, AND FOLLOWING UP ON WHAT THE MAYOR PRO TIMM SAID, DOES THE ADMINISTRATION SUPPORT REDUCING THE CURRENT HOMESTEAD APPRAISAL CAP, THE INCREASE? UH, I THINK THE ADMINISTRATION WOULD BE SUPPORTIVE OF INCREASING THE ABILITY TO BE ABLE TO ADOPT A HIGHER HOMESTEAD EXEMPTION IF THAT'S NO, I'M SORRY.
THE INCREASE IN THE VALUATION, I APOLOGIZE.
THE, UM, RIGHT NOW IT'S, IS 10% IS THE MAX INCREASE ON YOUR HOMESTEAD FOR THE VALUATION, IS THAT CORRECT? IT'S, I, I BELIEVE THAT'S CORRECT.
I'D NEED TO LOOK BACK WITH OUR FINANCE FOLKS TO BE ABLE TO FIGURE OUT, BECAUSE IT'S NOT, NOT JUST OUR RULE, BUT HOW THAT RULE WOULD AFFECT THE DUAL PROPERTY CAPS THAT WE'RE UNDER.
SO WOULD THE ADMINISTRATION SUPPORT REDUCING IT TO MAYBE 3% OR 5% ON THE EVALUATION? I'D, I'D HAVE TO CHECK WITH OUR FINANCE TEAM ON EXACTLY WHAT THE IMPLICATIONS WOULD BE ON THAT, SO.
AND LAST QUESTION, FOLLOWING UP WITH COUNCIL MEMBER POLLARD SAID EARLIER, WITH THE DIFFERENT CAPS, THE RE THE PROPERTY REVENUE CAPS THAT WE FALL UNDER MM-HMM
SO I GUESS I'M TRYING TO FIND OUT WHICH ONE SUPERSEDES WHICH ARE, IS THE CITY OF HOUSTON CURRENTLY UNDER THE INFLATION PLUS POPULATION TO A MAXIMUM OF 3.5% OR A MAXIMUM OF FOUR POINT A HALF PERCENT? IT WOULD BE THE THREE POINT HALF, BECAUSE THAT IS A STATE LAW.
SO, UH, OUR FOUR AND A HALF REALLY DOESN'T MATTER ANYMORE.
I MEAN, ESSENTIALLY, YES, SIR.
SO, JUST TO MAKE MYSELF PERFECTLY CLEAR, THE GREATEST GIFT YOU CAN GIVE OUR YOUNG PEOPLE IS THE GIFT OF EDUCATION.
THERE ARE NECESSARY DOLLARS IN THAT, BUT WHAT WE'RE SAYING IS THAT WE SUPPORT THE STATE CONTRIBUTION TO THE COST OF PUBLIC EDUCATION RETURNING TO 60%, RETURNING TO 60% OVER THE LAST NUMBER OF YEARS, THE AMOUNT OF DOLLARS PAID BY THE STATE OF TEXAS.
AND I WAS A SCHOOL BOARD MEMBER FOR 10 YEARS, AND I SAW THIS EACH AND EVERY YEAR, AND CORRECT ME IF I'M WRONG, IT WAS AT 60% OF FUNDING WAS GIVEN BY THE STATE OF TEXAS.
AND SLOWLY OVER THE LAST NUMBER OF YEARS, IT'S BEEN REDUCED.
SO THAT INCREASE COMES FROM THE TAXPAYERS.
SO WHEN YOU LOWER IT FROM 60% TO WHATEVER NUMBER IT IS TODAY, THE DELTA AND INCREASE IN COST HAS TO BE INCURRED BY THE TAXPAYERS.
THAT'S WHY MY BILL IS 56% OF MY DOLLARS GO TO MY ISD AND 19% GO TO THE CITY OF HOUSTON.
WHAT WE'RE RECOMMENDING IS THAT THE STATE GETS BACK TO THE FORMULA OF FUNDING EDUCATION TO THE TUNE OF 60%.
AND I, AND I'LL NOTE TO YOUR, UH, TO YOUR POINT TOO, MAYOR PRO TEM, THE MAYOR SPECIFICALLY HAD ME ADD THE PHRASE, ALLOWING ISDS TO LOWER LOCAL PROPERTY TAXES AT THAT 60% FUNDING.
SO KEYING IN ON THIS CAN'T JUST BE THE STATE GIVING MORE MONEY, THERE NEEDS TO BE A, UM, UM, A WEIGHTED BALANCE WITH THAT.
AND, AND COUNCIL MEMBER ROBINSON AND I ABOUT, UH, A MONTH AGO HAD THE OPPORTUNITY TO TALK TO COMPTROLLER GLENN HAGAR, AND WE TALKED ABOUT THE AMOUNT OF MONEY COMING TO THE STATE, UH, WHICH IS ENORMOUS, AND WHAT ARE THEIR PLANS AND WHAT DO THEY SEEM TO THINK IS ON THE HORIZON FOR THE NEXT LEGISLATIVE SESSION.
AND, UM, WE HAD SPECIFICALLY TALKED ABOUT FUNDING PUBLIC EDUCATION BACK TO THE TUNE OF 60%, WHERE IT'S CONTINUED TO DROP AND GIVEN PROPERTY TAX RELEASE TO THE ISDS TO THEIR TAXPAYERS.
SO, UM, WE'RE RIGHT IN, IN, IN LINE WITH SOME OF OUR, UM, OUR CHARGES FOR BEGINNING IN JANUARY OF 23.
UH, COUNCIL MEMBER STAFF FROM COUNCIL MEMBER SALLY ALCON'S OFFICE, MS. MCGINTY.
UM, ALSO ON THE TAX RATE, WE KEEP LOWERING THE TAX RATE, BUT BENEFIT IS NOT FELT BY RESIDENTS BECAUSE VALUATIONS CONTINUE TO INCREASE.
WHAT CAN WE DO AT THE STATE LEVEL TO CAP THOSE INCREASE TO, TO CAP THE INCREASES IN VALUATION? YES.
WELL, I I JUST POINT TO THE TWO, UH, UH, TWO VARIABLES THAT MAYOR PRO TIMM MARTIN, UH, DESCRIBED.
UH, THE STATE SEEMS TO BE VERY, UH, FOCUSED ON OUR RATE, UH, BUT NOT AS FOCUSED ON THE APPRAISAL.
SO, UM, I, I THINK THE MATH IS CLEAR ON THE APPRAISAL PORTION.
IT'S, IT'S A PRETTY BULLETPROOF AND VALUE, UH, IS DETERMINED BY HARRIS COUNTY APPRAISAL DISTRICT HCA.
SO, WHICH IS A FORMULA UN TO ITSELF, WHICH IS A FORMULA UNTO ITSELF.
ANY ADDITIONAL QUESTIONS FOR THIS IS THE LAST TIME WE'LL SEE HIM.
SO HE SAYS WE'LL BE, WE'LL BE BACK UP WHEN COUNSEL PASSES THEM AS A, UH, AS A WHOLE.
[00:35:01]
THE, UH, NOVEMBER ELECTION WILL BE BRINGING OUR STATE LOBBY CONTRACT BEFORE YOU, SO, UH, MORE, MORE TIMES TO, TO GET ME.SO, ANOTHER INTERESTING TIDBIT OF KNOWLEDGE WE LEARNED IS THAT DURING COID AND, AND MANY OF THE LAST COUPLE OF YEARS, THE SCHOOL DISTRICTS AROUND THE STATE OF TEXAS HAVE MORE MONEY IN THEIR FUND BALANCE THAN THE STATE OF TEXAS HAS IN THEIR ENDOWMENT FUND.
BUT THAT SINK IN, PUT THAT IN HERE.
SO, UM, LOOK FORWARD TO THE SESSION.
I THINK OUR LEGISLATIVES UH, LEGISLATORS HAVE A, UH, SIGNIFICANT CHALLENGES IN FRONT OF 'EM, BUT THEY DO HAVE A GOOD DEAL OF MONEY TO DEAL WITH IN THIS BIENNIUM.
AND, UM, WE NEED TO MAKE SURE THAT OUR PRESENCE IS KNOWN IN AUSTIN, WHICH WE ALWAYS DO.
I KNOW I LOOK AROUND IN THE HORSESHOE, AND A NUMBER OF US ARE CONSTANTLY IN AUSTIN, AND YOU GUYS AND YOUR TEAM ARE IN THERE EVERY DAY.
WHEN WILL THE LOBBY, UH, CONTRACTS COME, COME UP TO US? UH, LIKELY NOVEMBER, DECEMBER, NOVEMBER, DECEMBER.
SO WE ALWAYS WAIT UNTIL AFTER THE ELECTION JUST TO MAKE SURE.
UM, THAT, THAT GOES APPROPRIATELY.
AND IF I COULD GIVE ONE MORE SHOUT OUT IN AIRPORT, TIM, I WANT TO SHOUT OUT ALL OF OUR LEGISLATIVE LIAISONS WHO LABOR TIRELESSLY TO BE ABLE TO REVIEW THESE BILLS.
THEY COME IN, I'M SURE IT'S THEIR LEAST FAVORITE DAY OF THE WEEK ON FRIDAY MORNINGS DURING SESSION AS THEY MEET WITH ME AND MY TEAM, UH, TO BE ABLE TO GO OVER THOSE SPECIFIC CONSEQUENCES.
AND I DON'T BELIEVE ANYBODY GETS ANY KIND OF INCREASED PAY FOR IT.
THEY JUST DO IT BECAUSE WITHOUT THEM DOING IT, THEIR DEPARTMENT COULD BE ADVERSELY AFFECTED.
SO EVERYBODY FROM SOLID WASTE TO FINANCE TO LEGAL TO BARK TO, I MEAN, IT, IT, IT REALLY IS THE WHOLE PERSPECTIVE, UH, OF BILLS THAT COME UP, JUST A BIG THANK YOU TO THEM.
WE LIST THEM ON OUR LEGISLATIVE REPORT.
SO IF YOU WANT TO KNOW WHO THOSE FOLKS ARE WITHIN THE DEPARTMENTS, THEY'RE, THEY'RE WITHIN OUR 2021 LEGISLATIVE REPORT.
BUT A BIG THANK YOU FOR THEIR, UH, WILLINGNESS AND FOR THEIR DIRECTORS TO GIVE THEM THE TIME TO BE ABLE TO DO THAT.
'CAUSE IT REALLY IS IMPACTFUL.
AND, AND, AND MY FINAL WORD WILL BE A, A GREAT SHOUT OUT.
WE TALKED ABOUT THIS YESTERDAY TOO, OUR HOUSTON DELEGATION ON THE SENATE SIDE AND THE HOUSE SIDE THAT DO A GREAT JOB HELPING US WITH THIS LEGISLATIVE PROCESS AND MOVING IT FORWARD.
SO, UH, SHOUT OUT TO ALL OUR LEGISLATORS IN, IN HOUSTON, DEMOCRATS AND REPUBLICANS.
UH, WE HAD, UH, A, A STRONG DEMOCRATIC STATE REPRESENTATIVE, UH, CARRY US IN, IN APPROPRIATIONS, UH, ALLOTMENT LAST YEAR.
AND, UH, SHOUT OUT TO STATE REPRESENTATIVE ARMANDO WALLY, WHO HELPED US TREMENDOUSLY.
AND, UH, AND A LOT OF THAT HAPPENS MM-HMM
IN THE MAKES REPUBLICANS HELPING DEMOCRATS AND DEMOCRATS HELPING REPUBLICANS.
UH, HOPEFULLY WE CAN CONTINUE THAT PROCESS AND SET A GREAT EXAMPLE FOR THE REST OF THE, UH, LEGISLATIVE PROCESSES.
WE WILL MOVE TO PUBLIC SPEAKERS.
AND RECOGNIZE YOUR TEAM AGAIN FOR ME.
I HAVE, I HAVE THE FULL, UH, GOVERNMENT RELATIONS TEAM HERE.
UH, SO I MENTIONED OUR LEGISLATIVE MANAGER, ANDY MATAY.
UH, OUR NEW DEPUTY, UH, LEGISLATIVE, UH, DIRECTOR OR, UH, DEPUTY DIRECTOR OF THE GOVERNMENT RELATIONS TEAM IS ALEXA EZ.
UH, SHE COMES TO US FROM THE CITY OF ARLINGTON.
JUST CELEBRATED HER ONE YEAR ANNIVERSARY HERE WITH THE CITY.
UH, AND THEN, UH, DESMOND TAYLOR IS OUR SENIOR COMMUNICATION SPECIALIST.
DESMOND WAS THE SINGULAR INDIVIDUAL RESPONSIBLE FOR BEING ABLE TO COORDINATE THE REALLY SUCCESSFUL NON-PARTISAN CONVERSATION ON VOTER RIGHTS.
SO JUST DID AN OUTSTANDING JOB WITH IT.
SO WE ARE FOR, BUT WE ARE MIGHTY.
AND I DID FORWARD YOUR LIST OF QUESTIONS TO BOTH, UH, WELL, I DID, DID SEND IT TO THE CONTROL.
SO I WON'T ADDRESS MY QUESTIONS NOW.
IS THAT, IS THAT CORRECT? DO WHATEVER YOU, IT'S YOUR TIME.
WELL, FIRST OF ALL, I THINK IT'S TWO MINUTES AFTER HEARING BILL'S PRESENTATION.
I HAVE SECOND THOUGHTS ABOUT ELIMINATING TAXPAYER FUNDED LOBBYING.
IT SOUNDS LIKE WE GET A LOT OF BENEFIT FROM THE MONEY THAT WE SPEND ON THAT.
SO, AND THIS IS THE FIRST TIME I'VE HEARD A PRESENTATION LIKE THAT.
SO, BUT, SO I'LL, I'LL GIVE YOU, LET ME THROW MY 2 CENTS WORTH.
I THINK THEY DO A DARN GOOD JOB REPRESENTING US.
THERE ARE MANY BILLS THAT WE SEE GOING THROUGH THE STATE PROCESS THAT HAS UNINTENDED CONSEQUENCES.
A LOT OF THE REPS THAT YOU TALK TO SAY, WELL, DID WE, WE REALLY DO THAT.
SO THE LOBBY TEAM GIVES US THE OPPORTUNITY TO BRING OUR POINT OF VIEW TO THOSE LEGISLATORS AND MAKE SURE THAT THEY REPRESENT THE CITY THAT THEY LIVE IN AS WELL.
I THINK, UM, THERE'LL BE ANOTHER MOVE
[00:40:01]
TO ELIMINATE, I'M SURE LOCAL LOBBY EFFORTS.IT CAME CLOSE PAST LAST, BUT AT THE SAME TIME, UM, IF YOU WALK AROUND AUSTIN, YOU SEE A LOT OF STATE REPS, FORMER STATE REPS AND FORMER STATE SENATORS DOING LOBBY WORK.
UH, THE BUDGET WAS APPROVED FOR 20 23, 3 MONTHS AGO, AND, UH, WE STILL HAVE THE PROPOSED BUDGET ONLINE AS OPPOSED TO THE ADOPTED BUDGET.
AND I'M NOT SURE WHY THAT'S THE CASE, BUT I WOULD, AS SOMEBODY THAT REVIEWS THE BUDGET REGULARLY, I WOULD HOPE THAT THAT CAN BE PUT ONLINE.
UH, AND THEN I HAD A COUPLE OF QUESTIONS ON D-D-S-R-F AND, UH, PUBLIC HEALTH SERVICES FUND THAT HAVE LARGE PROJECTED BALANCES.
I GUESS YOU CAN'T ANSWER THOSE NOW.
AND MY QUESTION WAS, WHY DO WE NEED TO FUND THEM THIS YEAR IF THEY HAVE THESE LARGE BALANCES? AND, UH, I GUESS IF YOU, UH, FORWARD THIS, UH, FINANCE WILL GET BACK TO ME WITH THE ANSWERS.
AND THEN FINALLY, UM, THANKS FOR THE ANSWER ON THE BONDS.
UH, THAT WAS VERY EDUCATIONAL.
UH, AND I HAD SEVERAL QUESTIONS ON TOURS.
UH, BUT AFTER READING THE CHRONICLE ARTICLE THIS MORNING, I HAVE A LOT FEWER QUESTIONS ON TOURS.
UH, I DUNNO WHETHER YOU ALL HAVE SEEN THAT YET OR NOT, BUT OH, YOU SHOULD.
UH, AND THERE'S GONNA BE MORE ON THAT.
UH, BUT, UH, I HAVE A FEELING THAT, UH, ONE OF THE COMMENTS THEY MADE, WHICH WAS NEWS TO ME, WAS THAT IF A TOURS IS, UH, EXTINGUISHED, THE TAXES FROM THE TOURS, UM, COME BACK TO THE CITY AND IT'S PART OF THE CAP.
AND THE ARTICLE SAID, NO, THAT'S NOT TRUE, BECAUSE OF SOME WORDING THAT WAS, UH, HAPPENED IN 2006.
THAT'S REALLY BIG IN MY OPINION, UH, FOR QUESTIONING THE NEED FOR TOURS.
AND AS A MATTER OF FACT, I THINK MAYBE THAT MIGHT BECOME A CAMPAIGN ISSUE NEXT YEAR RELATIVE TO CANDIDATES FEELINGS ABOUT THAT BECAUSE THERE ARE SO MANY INEQUITIES IN THE CITY.
YOU LOOK AT THE GALLERIA AND YOU LOOK AT GULFTON RIGHT NEXT DOOR, AND, UH, THERE'S THIS HUGE INEQUITIES AND THAT HAS TO BE ADDRESSED.
AND, UH, ELIMINATING TOURS IS ONE WAY TO POSSIBLY DO THAT, IN MY OPINION.
OR AT LEAST SPREADING THE WEALTH WOULD BE ANOTHER WAY, WAY TO SAY THAT.
LISTEN, I DID NOT READ THE ARTICLE.
I WILL WHEN I GET BACK TO THE OFFICE, BUT, UH, I'VE HAD, LIKE MANY OF OUR COUNCIL MEMBERS, I'VE HAD EXTENSIVE CONVERSATIONS AROUND TAX INCREMENT, RE INVESTMENT ZONES.
I'VE HAD THE MOST VIBRANT ONES HAVE BEEN WITH, UH, UH, STATE SENATOR PAUL BETTENCOURT I'M SURE.
AND, UH, HE HAS A FIRM OPINION ABOUT TURS.
AND I HAVE A DIFFERENT OPINION.
MY OPINION IS, AND I WILL GO BACK TO WHEN I FIRST GOT IN OFFICE, UH, THE FIRST THREE YEARS OF MY CITY COUNCIL REGIME, THE AREA I REPRESENT NEVER RECEIVED ANY GENERAL FUND DOLLARS ZERO.
WE DIDN'T SEE RECEIVE ANY CAPITAL IMPROVEMENT PROJECTS EVERY YEAR I WOULD TALK ABOUT THE INEQUITIES OF CIP AND I WOULD SHOW THAT DISTRICT C AT THAT TIME WAS RECEIVING 13% OF THE DOLLARS AND I WASN'T RECEIVING ANYTHING.
SO WHEREAS THE EQUITY IN THAT, AND MY COMMENT TO THAT WAS BECAUSE OF THE TAX INCREMENT REINVESTMENT ZONE WAS, WHICH DOES TAKE MONEY FROM THE GENERAL FUND AND GIVES IT TO THE TAX INCREMENT REINVESTMENT ZONES, WE HAVE THE ABILITY TO DO PROJECTS BECAUSE WE DON'T RECEIVE ANY MONEY FROM THE GENERAL FUND.
THEREFORE THE MONEY WE RECEIVE FROM THE TAX INCREMENT REINVESTMENT ZONE GOES DIRECTLY TO THE NEIGHBORHOOD THAT WE ALL LIVE IN.
SO I'VE ALWAYS BEEN A BIG FAN OFT IF THEY'RE DONE PROPERLY.
UH, I THINK THAT IN OUR AREA, UH, WHERE WE DON'T RECEIVE A SIGNIFICANT NUMBER OF DOLLARS FROM THE GENERAL FUND, UH, THAT'S THE WAY WE DO PROJECTS THAT SERVE THE BEST INTERESTS OF THE RESIDENTS THAT WE ARE ELECTED TO REPRESENT.
SO I'VE HAD THAT ARGUMENT WITH SENATOR BETTEN COURT AND LET'S SAY WE JUST AGREE TO DISAGREE ON THE SUBSTANTIAL USE ON S NOW IF YOU TALK TO COUNCIL MEMBER, FORMER COUNCIL MEMBER MICHAEL LASTER, HE'LL BRING UP THE GOLDEN BOWL.
AND SOME OF THOSE TOURS ARE INDEED, UM, UM, UM, YEAH, INTERESTING WHEN YOU LOOK AT 'EM.
ANY OTHER COMMENTS FROM COUNCIL MEMBERS? SEEING NONE, I WOULD LIKE TO REMIND EVERYONE THAT OUR NEXT SCHEDULED BUDGET AND FISCAL AFFAIRS COMMITTEE MEETING WILL BE NOVEMBER 21ST.
NOVEMBER 1ST, 2022 AT 10 O'CLOCK.
AGAIN, NOVEMBER 1ST, 2022 AT 10 O'CLOCK.