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AND LIKE, TO[Budget and Fiscal Affairs]
WELCOME ALL COUNCIL MEMBERS IN ATTENDANCE, WE HAVE COUNCIL MEMBER AMY PECK FROM DISTRICT A GOOD MORNING COUNCIL MEMBER ROBERT ESCOS, DISTRICT GUY, COUNCIL MEMBER DAVID ROBINSON.UH, FROM POSITION TWO, HE'S MEANDERING AROUND ON THE BACK.
AND THEN SALLY ALCORN WOULD POSITION FIVE AT LARGE.
AND THEN STAFF FROM LETITIA PLUMMER, POSITION FOUR, AND MARY ANNE HUFFMAN, DISTRICT G AND STAFF FROM MICHAEL KNOX'S OFFICE, UH, AT LARGE POSITION ONE.
COUNCIL MEMBER HUFFMAN AND COUNCIL MEMBER HUFFMAN, AND THEN STAFF FROM DISTRICT H AND STAFF FROM COUNCIL MEMBER CARLOS CIRO'S OFFICE.
MEMBERS OF THE PUBLIC WHO ARE HERE IN PERSON WOULD LIKE TO PARTICIPATE IN THIS PUBLIC COMMENT SESSION.
THERE IS A SIGN IN SHEET AT THE FRONT TABLE TO MY LEFT, TO YOUR RIGHT, MY STAFF MEMBER, MARK WA YOUR HAND MARK.
WE'LL BE MONITORING THE PUBLIC SPEAKERS LIST.
AND I KNOW THAT WE HAVE ONE THAT'S ALREADY SIGNED UP, MR. DOUG SMITH.
DOUG, COUNCIL MEMBERS AND STAFF, PLEASE HOLD YOUR QUESTIONS UNTIL THE END OF THE PRESENTATION.
UH, WE HAVE A NUMBER OF SUBJECTS THAT, THAT WE'RE GONNA TALK ABOUT IN ADDITION TO THE MONTHLY FINANCIAL REPORT.
WE'LL BE TALKING THE HOUSTON FIRST 2023 BUDGET, WHICH, UH, IS A PRETTY POSITIVE PICTURE, SO I'M LOOKING FORWARD TO THAT.
SO WITH THAT BEING SAID, AT THIS TIME, I'D LIKE TO WELCOME CONTROLLER CHRISTOPHER BROWN AND FINANCE DIRECTOR WILL JONES TO PROVIDE THE MONTHLY FINANCIAL REPORT.
COUNCIL MEMBERS AND STAFF, I'M PLEASED TO PRESENT THE MONTHLY FINANCIAL REPORT FOR THE PERIOD ENDING OCTOBER 31ST.
IN THE GENERAL FUND, THE CONTROLLER'S OFFICE IS PROJECTING AN ENDING FUND BALANCE OF 300.8 MILLION FOR FY 23.
THIS IS 37.7 MILLION LOWER THAN THE PROJECTION OF THE FINANCE DEPARTMENT.
THE DIFFERENCES DUE TO A 37.7 MILLION LOWER REVENUE PROJECTION THAN THE FINANCE DEPARTMENT.
THERE'S A GIANT LUC IN CITY HALL.
I THINK THERE'S A, UH, MAYBE THAT'S SANTA CLAUS'S ELS ON THE ROOF OR SOMETHING.
BASED ON OUR CURRENT PROJECTIONS, THE FUND BALANCE WILL BE APPROXIMATELY 127.7 MILLION ABOVE THE CITY'S TARGET OF HOLDING 7.5% OF EXPENDITURES AND RESERVES.
THE FY 23 BEGINNING FUND BALANCE IS 16.5 MILLION HIGHER THAN THE FY 22 ENDING FUND BALANCE REPORTED IN THE JUNE 30TH MONTHLY FINANCIAL REPORT.
UH, THIS INCREASES DUE TO YEAR END ADJUSTMENTS TO REVENUES AND EXPENDITURES THAT WILL NOT BE FINAL UNTIL THE FY 22 ANNUAL COMPREHENSIVE FINANCIAL REPORT IS PUBLISHED.
OUR PROJECTIONS ARE UNCHANGED FROM THE SEPTEMBER 22 REPORT, AND IF WE MOVE ON TO THE ENTERPRISE FUNDS, WE ARE, UM, PROJECTING, UH, NO CHANGES IN ANY OF OUR ENTERPRISE FUNDS.
SO FINALLY, I'LL MOVE TO THE COMMERCIAL PAPER AND BONDS.
UH, IF YOU LOOK AT OUR VARIABLE RATE DEBT, ALL OF OUR VARIABLE RATE DEBT IS WELL BELOW THE 20% THRESHOLD.
THIS IS THE FOUR PLUS EIGHT FINANCIAL REPORT FOR THE PERIOD ENDING OCTOBER 31ST, 2022.
PROJECTIONS ARE BASED ON FOUR MONTHS OF ACTUAL RESULTS IN EIGHT MONTHS OF PROJECTIONS FOR THE GENERAL FUND.
OUR REVENUE PROJECTION IS 4 MILLION LOWER THAN THE ADOPTED BUDGET, AND REMAINS UNCHANGED FROM THE THREE PLUS NINE REPORT.
UM, FOR THE EXPENDITURES, OUR EXPENDITURE PROJECTION IS 6.1 MILLION HIGHER THAN THE ADOPTED BUDGET AND REMAINS UNCHANGED FROM THE PRIOR REPORT.
WE'RE CURRENTLY PROJECTING THE ENDING FUND BALANCE OF 338.5 MILLION, WHICH IS 14.6% OF EXPENDITURES, UH, LESS DEBT SERVICE AND PAY AS YOU GO.
THE FUND BALANCE IS 165 MILLION ABOVE THE TARGET AT 7.5% OF EXPENDITURES, EXCLUDING DEBT SERVICE ON THE ENTERPRISE AND SPECIAL FUNDS.
WE ARE PROJECTING NO FORECAST CHANGES, UH, FOR THIS MONTH.
UM, AND BEFORE I CONCLUDE THE REPORT, I DID WANNA SHARE WITH COUNSEL AS WE ARE GETTING READY FOR FY 24 AND THE OUTCOME BASED BUDGET, UM, I HAVE, UH, PREPARED A SURVEY, A CITIZEN SURVEY.
SO I'M WORKING WITH THE, UH, COMMUNICATIONS MAYORS COMMUNICATIONS OFFICE TO DRAFT SOME LANGUAGE, AND I'LL BE SHARING THAT WITH COUNSEL, SO HOPEFULLY YOU GUYS CAN SEND THAT OUT TO WHATEVER FORUM YOU HAVE TO COMMUNICATE WITH, UH, CONSTITUENTS.
SO I WANT AS MUCH PARTICIPATION AS POSSIBLE.
SO I THINK IT'S THE FIRST TIME WE'VE HAD THIS AHEAD OF THE BUDGET CYCLE, AND THAT'S THE PLAN AS WE HEAD INTO FY 24.
DIRECTOR JONES, LIKE TO WELCOME STAFF FROM VICE MAYOR PRO TEM, MARTHA CASTEX, TATUM'S OFFICE.
UH, COUNCIL MEMBER SALLY ALCORN.
AND GOOD TO HEAR THAT WE'RE GONNA DO THE MY 2 CENTS SURVEY THAT I'VE BEEN DOING FOR THE PAST THREE YEARS.
GLAD, GLAD TO SEE THE, I THOUGHT YOU WOULD LIKE THAT
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SO IF YOU NEED SOME ADDITIONAL LANGUAGE OR YOU CAN, YOU CAN LOOK.
BUT, UM, BUT WE WERE GONNA MAKE SOME TWEAK STARS THIS YEAR TOO, BUT I'M SO GLAD WE'RE DOING THIS CITYWIDE.
UM, I DID DO A BUDGET AMENDMENT MY FIRST YEAR TO MAKE IT A CITYWIDE SURVEY.
SO, I MEAN, I DO IT CITYWIDE, BUT TO MY, MY UNIVERSE.
SO HOPEFULLY THAT'LL BE, THAT'LL BE REALLY, UH, THAT'LL BE GREAT.
I'M EXCITED, EXCITED THAT IT'S COMING.
UM, YOU CAN EVEN CALL IT MY 2 CENTS, IF YOU'D LIKE.
UM, AS YOU KNOW, LAST WEEK WE HAD THE ARGUMENTS, I GUESS THE FIRST SET OF ARGUMENTS AND THE PROP B AND THE, UH, COLLECTIVE BARGAINING, UM, ISSUES AT THIS, AT THE SUPREME COURT.
WE DON'T KNOW HOW THAT'S GONNA GO.
UM, BUT CAN YOU GIVE US AN IDEA OF, OF KIND OF WHAT THE LIABILITY COULD BE? UM, DEPENDING ON HOW IT GOES.
I MEAN, I'M JUST ASKING FOR A RANGE.
I'M LAUGHING BECAUSE IT'S AN UGLY PICTURE, BUT IT'S AN UGLY PICTURE.
AND I THINK THAT, UH, EVERYBODY NEEDS TO BE AWARE.
I MEAN, WE'RE, WE CAN BE OPTIMISTIC ON THE CITY SIDE OR, OR HOWEVER YOU LOOK AT IT, BUT I THINK THAT IT'S, IT'S, UM, ON US TO BE PREPARED FOR WHAT, WHAT MIGHT BE COMING DOWN THE PIPE, UH, UH, AS SOON AS NEXT SUMMER.
IS THAT WHAT THEY'RE SAYING? THAT A DECISION, UH, WILL PROBABLY BE REACHED ON THIS.
UM, THANK YOU COUNCIL MEMBER FOR YOUR QUESTION.
UM, YES, UH, AS WE ALL KNOW, UH, AND HAVE READ IN THE MEDIA, THERE ARE, UH, THEY'RE IN THE DELIBERATIONS AND WE SHOULD HEAR, UH, AN ULTIMATE VERDICT.
UM, YOU KNOW, THE CHALLENGE IS, UH, AND A LOT OF TIMES YOU GUYS HEAR ME SAY THIS, HOW DO WE PAY FOR THIS? AND, YOU KNOW, ONE OF THE THINGS MY OFFICE, UH, CONTINUALLY ARGUED FOR WAS TO TRY AND RESOLVE THIS THROUGH A COLLECTIVE BARGAINING AGREEMENT.
AND THE REASON IN PART IS BECAUSE HISTORICALLY WE HAVE MADE THESE PAY RAISES THROUGH THAT CBA AGREEMENT, AND WE HAVE DONE SO, UH, WHERE WE PHASE IN THE COSTS, JUST LIKE WE RECENTLY APPROVED RAISES FOR POLICE M AND FIRE.
UH, THOSE ARE DONE OVER A PERIOD OF THREE YEARS.
UM, I, I WANNA REFRAIN AND I, I'M HAPPY TO MAYBE DISCUSS, UH, PRIVATELY WITH YOU.
UH, JUST BECAUSE THIS IS, UH, IN, UH, COURT OF LAW, I WOULD NOT WANNA SAY ANYTHING PUBLICLY THAT COULD POTENTIALLY AFFECT, UH, THE OUTCOME.
BUT I WILL SAY, UH, THE COSTS ARE SUBSTANTIAL.
UM, AND THE REAL, UM, CHALLENGE TO THE CITY IS IF, UH, EVEN THE BEST CASE SCENARIO FINANCIALLY FOR US, IF WE ARE REQUIRED TO PAY THAT IMMEDIATELY, AGAIN, NOT THROUGH SOME KIND OF CBA OR SOME KIND OF MULTI-YEAR AGREEMENT, UH, IT'S GONNA PUT, UH, AN IMMENSE AMOUNT OF PRESSURE ON NEXT YEAR'S BUDGET.
WE HAVE NO OTHER COUNCIL MEMBERS IN Q.
JUST A QUICK UPDATE ON THE SWAPS.
THE SWAPS, UH, WE'RE SEEING, UH, CONTINUAL INCREASE IN INTEREST RATES, UM, WHICH IS NOT, YOU KNOW, GOOD FOR ISSUING DEBT FOR A SWAP PORTFOLIO.
IT IS, UH, WE'RE SEEING THE TOTAL LIABILITY AND OUR TWO SWAPS CONTINUE TO, UH, DECLINE.
UH, THE RBC SWAP, I THINK GOT AS LOW AS $16 MILLION ON THE NEGATIVE FAIR VALUE.
SO IF WE CAN GET INTO A POSITION WHERE WE CAN EXIT THOSE OUT WITHOUT ANY COSTS TO THE CITY, UH, I THINK WE'RE GONNA TRY AND, AND, AND DO THAT.
UM, I DID WANNA JUST, UH, POINT A PERSONAL PRIVILEGE.
I DID SEND OUT A MEMO TO ALL OF THE ADMINISTRATION AND COUNCIL MEMBERS YESTERDAY, UH, AS MY, UM, ROLE AS CONTROLLER AND, UH, WATCHDOG.
I WANTED TO BRING TO YOUR ATTENTION A REPORT THAT WAS MADE, UH, AWARE TO MY OFFICE ABOUT THE EAST WATER PURIFICATION PLANT.
AND, UH, IN THE SAME, UH, LINE OF, UH, DISCUSSION AS COUNCIL MEMBER ALCORN BROUGHT UP ABOUT THE POTENTIAL LIABILITY AROUND THIS, UH, COLLECTIVE BAR, OR I SHOULD SAY THE, UM, UH, PROP B LAWSUIT AND COLLECTIVE BARGAINING LAWSUIT.
UH, IT WAS MADE AWARE TO OUR OFFICE THAT THERE'S ACTUALLY, UH, APPROXIMATELY $1.14 BILLION IN DEFERRED MAINTENANCE AND, AND NECESSARY CAPITAL INVESTMENT AT THE EAST WATER PLANT.
UM, IF WE LOOK AT THE CIP UH, PLAN, UM, THERE'S ABOUT $448 MILLION, UH, PLANNED OVER THE NEXT FIVE YEARS, AND ONLY 40 MILLION OF THAT NEXT YEAR.
SO, IN LIGHT OF ALL OF THE, UH, RECENT ACTIVITIES OUT THERE, UH, WITH THE BOILED WATER NOTICE, UM, I THINK IT'S IMPORTANT THAT THIS BODY START TAKING UP SOME PUBLIC DISCUSSION ABOUT WHAT IS THE PLAN FROM, YOU KNOW, A FINANCIAL PERSPECTIVE OF HOW ARE WE GOING TO FUND THE REPAIRS AT THIS PLANT SO WE DON'T HAVE FUTURE, UH, PROBLEMS. UM, MY OPINION FROM THE CONTROLLER'S OFFICE, UH, THAT WHILE 448 MILLION IS A A LOT OF MONEY, IF YOU'RE LOOKING AT 1.14 BILLION, AND THAT IS A REPORT THAT WAS PUBLISHED 14 MONTHS AGO.
SO WE ALL KNOW INFLATION IS PLAYING A, UNFORTUNATELY, A NEGATIVE IMPACT ON OUR COSTS.
UM, BY THE TIME THIS PROJECT WERE TO START,
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THE COST COULD RISE, YOU KNOW, SEVERAL HUNDRED MILLION DOLLARS.AND, UM, WE JUST NEED A PLAN THERE, THERE.
THE GOOD NEWS IS WE DO HAVE, UM, MONEY FROM OUR ARPA FUNDS.
I THINK THERE'S A ABOUT $172 MILLION, UH, IN OUR FUND BALANCE, UH, AND THE INFRASTRUCTURE INVESTMENT AND JOBS ACT, IIJA, THERE ARE FEDERAL FUNDS, UH, ALBEIT WITH A MATCHING PERCENTAGE, 10 TO 20%.
AND IT'S POSSIBLE SOME OF THESE, UM, NEEDS COULD BE MET THROUGH THE FEDERAL FUNDING.
BUT I THINK THERE NEEDS TO BE SOME MORE PUBLIC DISCUSSION.
AND I WOULD ENCOURAGE COUNCIL, WHETHER THROUGH THIS COMMITTEE OR, OR TIA OR ANOTHER COMMITTEE, UH, TO ENGAGE IN THAT DISCUSSION SO THAT WE CAN START MAKING SOME MEANINGFUL CHANGE TOWARDS FIXING THAT PLAN.
THANK YOU CHAIR, AND THANK YOU CONTROLLER.
THE 448 MILLION THAT YOU'RE TALKING ABOUT OVER FIVE YEARS, IS THAT FOR THAT PLANT OR FOR OTHER DEFERRED MAINTENANCE OF OTHER THAT'S JUST FOR, FROM, FROM WHAT I, YOU KNOW, OUR RESEARCH AND THE CIP, THAT'S SPECIFICALLY FOR THAT PLANT.
FOR THAT PLANT 4 48 OVER, WHICH, WHICH IS A SUBSTANTIAL AMOUNT OF MONEY.
AND, AND PRIOR TO ME SEEING THAT REPORT, UH, THIS WEEK, I WOULD'VE SAID THAT PROBABLY IS RIGHT.
BUT, YOU KNOW, NOW BEING MADE AWARE OF SOMETHING THAT IS, YOU KNOW, A REPORT THAT'S BEEN OUT THERE FOR OVER A YEAR, OBVIOUSLY THOSE COSTS ARE NOT GONNA BE MET.
WELL, AND OBVIOUS WE'RE GONNA 1.14 BILLION IS GONNA HAVE TO BE PHASED IN SOME WAY.
WE DON'T HAVE THAT LYING AROUND.
AND, AND IF I CAN ADD TOO, UM, I HAVEN'T SEEN THE REPORT, BUT I KNOW DIRECTOR HADDOCK HAS PROVIDED SOME, UH, REMARKS AND SOME STEPS THAT, UH, HOUSTON PUBLIC WORKS HAS TAKEN AS A RESULT OF THAT.
AND IT WILL BE WISE OF US TOO, TO WAIT FOR THE DIAGNOSTIC THAT THE MAYOR HAS ORDERED, JUST TO MAKE SURE WE FULLY UNDERSTAND EVERYTHING THAT HAPPENED AT THE, AT THE PLANT.
SO, UM, THERE'S STILL SOME THINGS KIND OF THAT WE NEED TO KIND OF WAIT AND SEE WHAT IT ALL MEANS, BUT, UM, FOR SURE, YOU KNOW, 1.4 BILLION, LIKE I SAID, DIRECTOR HADDOCK, UM, IN, IN HOUSTON PUBLIC WORKS ARE TAKING STEPS TO, TO ADDRESS THAT.
AND I DID, I DID SEE THAT MEMO FROM DIRECTOR HADDOCK ON THE, THE, THE RFPS THAT HAVE GONE OUT.
IT DOES SEEM LIKE A LONG TIME FROM ISSUING THE RFP TO WHEN WE ACTUALLY GET TO THE CONTRACT.
I MEAN, THAT'S WHAT I NOTICED FROM THAT MEMO WHERE, AND I, AND I HEAR THAT, UM, BUT THERE'S A, FROM, FROM DIFFERENT ENTITIES THAT, THAT FROM, FROM THE RFP TO THE SELECTION TO THE CONTRACT AWARD SEEMS TO BE A, A REALLY LONG PROCESS.
AND I KNOW, I KNOW THEY'RE COMPLEX AND THINGS, BUT YOU KNOW, I'M SOMETHING TO BE CONCERNED ABOUT.
AND I WOULD ARGUE THAT'S IN EVERYTHING WE DO AROUND THE CITY, IT SEEMS TO BE A LONG DRAWN OUT PROCESS.
UM, ARE YOU REFERRING TO THE, MAKE SURE I GOT THIS RIGHT 'CAUSE I TRIED TO LOOK IT UP AND I COULDN'T, THE AECOMS, UH, CONDITION ASSESSMENT AND EVALUATION REPORT THAT THIS WAS ABOUT? YES, THIS WAS, UH, AECOM, UM, CONDITIONAL REPORT THAT WAS, UH, DATED OCTOBER, 2021, OCTOBER, 2021.
SO I KNOW THAT THE FOUR LETTER WORD IN THE CITY OF HOUSTON IS DEFERRED MAINTENANCE.
I MEAN, WE GOT BILLIONS OF DOLLARS IN DEFERRED MAINTENANCE IN A LOT OF OUR FACILITIES.
AND I DO KNOW THAT, UH, I MAY BE WRONG ON THIS, BUT I THOUGHT WE JUST RECENTLY IN SEPTEMBER, CHOSE TWO FIRMS TO WORK ON THE EAST PLANT.
THEY HAVEN'T COME TO COUNCIL YET, BUT THEY WILL.
AND I THINK THERE ARE GONE OUT FOR ANOTHER RFP FOR, UM, CONSTRUCTION WORK, AND I THINK THERE HAS BEEN SOME MONEY ALLOCATED, BUT I'M NOT SURE IF IT'S $1.13 MILLION, BUT YEAH.
BUT THANKS FOR BRINGING THAT UP, AND IT'S, UH, ALWAYS INTERESTING TO KNOW.
ANY CLOSING COMMENTS? EITHER YOU GENTLEMEN, COUNCIL MEMBER OF MARYANNE HUFFMAN.
UM, I KNOW YOU MENTIONED THE GRANT FUNDS WITH THE INFRASTRUCTURE INVESTMENT AND JOBS ACT.
UM, HAVE WE ACTUALLY APPLIED FOR ANY OF THOSE FUNDS YET? DO YOU KNOW? UH, I'M NOT AWARE.
I THINK THAT WOULD BE, UH, DIRECTOR JONES.
YEAH, I KNOW IN COLLABORATION WITH THE GOVERNMENT RELATIONS TEAM, THE CITY IS ACTIVELY WORKING ON THAT.
UM, FOR, FOR PROJECTS THAT WOULD QUALIFY AND APPLYING FOR DIFFERENT GRANTS, BUT I WOULD HAVE TO DEFER TO, TO BILL KELLY.
SO RIGHT NOW YOU THINK WE'RE WORKING ON IT, BUT WE HAVEN'T ACTUALLY APPLIED FOR ANYTHING YET? WELL, I CAN'T SAY THAT FOR SURE.
I CAN'T SAY THAT FOR SURE, BUT I, I DEFINITELY KNOW IT'S A PRIORITY FOR THE CITY AND WE HAVE BEEN WORKING ON IT, BUT I CAN'T GIVE SPECIFICS.
THAT'S WHY I WOULD DEFER TO BILL KELLY.
NO OTHER COUNCIL MEMBERS IN QUEUE.
HAVE A GREAT DAY, AND WE'LL MOVE ON TO OUR SECOND PRESENTATION.
AT THIS TIME, I'D LIKE TO WELCOME HOUSTON FIRST PRESIDENT AND CEO, MR. MICHAEL HECKMAN, AND CFO, CHIEF FINANCIAL OFFICER, MR. FRANK WILSON, TO PROVIDE A PRESENTATION ON HOUSTON'S FIRST 2023 BUDGET.
AND I KNOW YOU GENTLEMEN, ALONG WITH TRACY PRINCE, HAVE DONE A FABULOUS JOB OVER THE LAST COUPLE OF WEEKS IN MEETING WITH ALL COUNCIL MEMBERS INDIVIDUALLY.
SO WE APPRECIATE YOUR DILIGENCE IN DOING THAT.
UM, YOU KNOW, YOU LOOK AT WHEN COUNCIL MEMBER ROBINSON AND I GOT ON THIS BOARD, MAYBE 11, 12 YEARS AGO,
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11 20 14, AND, UH, THERE WAS A LOT OF CONSTERNATION ABOUT HFCS BUDGET.AND NOW WITH C CONTINUING WITH COUNCIL MEMBER ROBERT GALLEGOS SERVING IN THAT CAPACITY, UH, I THINK IT'S A PRETTY DARN IMPRESSIVE PICTURE THAT WE'RE GETTING READY TO, UH, TO SEE.
SO, UH, THANKS TO YOU MICHAEL FRANK, AND THANKS TO TRACY.
I KNOW SHE WAS OUT THERE THIS MORNING, BUT Y'ALL DID A GREAT JOB LAST COUPLE OF WEEKS GETTING US THE INFORMATION.
UM, AND WE'VE ENJOYED THE TIME THAT WE'VE SPENT, UH, GETTING TO SEE, UH, YOU ALL ON COUNCIL AND TALK A LITTLE BIT ABOUT OUR BUSINESS, UH, AND REPRESENTING WHAT, UH, THE ENTIRE TEAM AT, AT HOUSTON FIRST HAS BEEN WORKING ON, AND WHAT WE WILL BE WORKING ON, UM, GOING INTO NEXT YEAR.
UM, WE DO COME TODAY, UH, I THINK WITH A VERY BRIGHT PICTURE, UH, WHICH STANDS IN CONTRAST, I THINK, TO THE LAST COUPLE OF YEARS, UM, THAT WE'VE BEEN, UH, LOOKING AT, THERE WERE DARK TIMES DURING THE PANDEMIC FOR ALL OF OUR REVENUE STREAMS, FOR OUR ENTIRE HOSPITALITY COMMUNITY, AND, UM, THE CHALLENGES THAT WE ALL FACED.
UM, WE DO BELIEVE THAT WHILE COVID IS STILL IN OUR COMMUNITY, IN ALL COMMUNITIES, UM, UH, THAT THE, THAT THE SIGNIFICANT IMPACTS ON THE TRAVEL AND HOSPITALITY, UM, BUSINESS ARE LARGELY BEHIND US.
UM, UH, FOLKS HAVE, UM, GOTTEN BACK TOGETHER, UH, FOR TRAVEL, FOR MEETINGS, FOR SPORTING EVENTS, FOR CULTURAL EVENTS, FAMILY EVENTS, THOSE THINGS.
AND YOU CAN SEE THAT IN THE WAY THAT OUR BUSINESS HAS, HAS SIGNIFICANTLY, UM, RECOVERED.
UM, WE, UH, UH, LOOKED AT THIS YEAR WITH A BUDGET DEFICIT THAT WAS APPROVED LAST YEAR AT, AT THIS TIME FOR 2022.
UH, I'M HAPPY TO SAY THAT WE HAVE BALANCED THAT BUDGET THIS YEAR.
WE'RE VERY PROUD OF THAT, UM, UM, THROUGH STRONG MANAGEMENT OF EXPENSES, UH, OVER PERFORMANCE OF REVENUES.
UH, AND WE ALSO PRESENT A BUDGET, UH, THAT, UH, DOES HAVE A SMALL SURPLUS, UH, FOR 2023.
SO WHAT WE'LL DO TODAY, FRANK AND I WILL, UH, WE WILL GIVE, UM, SOME HIGHLIGHTS OF THOSE, ANSWER ANY QUESTIONS THAT YOU MAY HAVE.
UM, BUT WE APPRECIATE THE OPPORTUNITY, UH, TO BE ABLE TO COME TODAY AND, AND DO THIS.
SO, UM, WE DO HAVE A SLIDE SHOW THAT I THINK THAT WE'LL, WE'LL WORK THROUGH HERE.
SO, ON THE FIRST, UH, ON, ON THE FIRST SLIDE, UH, WE ALWAYS LIKE TO REMIND, UH, UH, FOLKS OF WHAT OUR, OUR JOB IS AT HOUSTON.
FIRST, OUR MISSION, OUR MISSION IS TO CREATE VALUE, UM, UH, TO BRING VISITORS HERE, TO STEWARD OUR BRAND, UH, NOT ONLY ACROSS THE UNITED STATES, BUT ALL OVER THE WORLD.
UH, AND WHEN HOUSTON FIRST IS SUCCESSFUL, OUR COMMUNITY IS SUCCESSFUL.
SMALL BUSINESSES, UH, BIG BUSINESSES, JOBS ARE CREATED.
IT'S ONE OF THE THINGS THAT, THAT IMPACTED US SO MUCH DURING THE, DURING THE PANDEMIC IS WE WERE, IT WAS SO DISAPPOINTING TO SEE SO MANY OF OUR FRIENDS IN THE, IN THE HOSPITALITY COMMUNITY THAT WERE FURLOUGHED OR LAID OFF.
WELL, THOSE, MANY OF THOSE JOBS ARE, ARE NOW COMING BACK.
UH, ON THE NEXT SLIDE, UH, WE LOOK AT THINGS IN, IN REALLY THREE STRATEGIC PILLARS AS WE GO THROUGH, UH, OUR LONG-TERM DECISION MAKING PROCESS, UM, UH, TRANSFORMATIONAL LEADERSHIP, WHERE WE NEED TO GET FOLKS, UH, OR, OR ORGANIZATIONS IN THIS COMMUNITY BEHIND A BIG IDEA, UH, TO BE ABLE TO GET THOSE THINGS DONE.
HOUSTON FIRST HAS A, HAS A UNIQUE, UH, POSITION TO BE ABLE TO DO THAT AND WORK COLLABORATIVELY, UH, ACROSS, UH, ACROSS OUR COMMUNITY FOR THE THINGS THAT, THINGS THAT WE DO.
DESTINATION DEVELOPMENTS, THE THINGS THAT YOU ALL KNOW THAT WE DO FROM TOURISM, PROMOTION, CONVENTION, SALES, MAJOR EVENTS, TV AND FILM PROMOTION, ET CETERA.
AND THEN WE'RE VERY FOCUSED ON OUR REVENUE DIVERSIFICATION, OUR ASSET GROWTH.
WE HAVE A GREAT MISSION, BUT WE NEED TO BE ON STRONG FINANCIAL FOOTING, UH, TO BE ABLE TO ACHIEVE THAT MISSION.
THE NEXT SLIDE IS THE WAY THAT WE LOOK AT THINGS INTERNALLY, UH, FOR HOW WE, UH, DELIVER ON THOSE THINGS, WHAT WE CALL OUR VALUE DRIVERS INTERNALLY FROM OUR DEPARTMENT HEADS, WHEN WE WOULD, WE WANT TO ENTER INTO AN INITIATIVE, UH, TO TIE BACK TO ONE OR MORE OF THESE, THIS IS REALLY A MANAGEMENT PHILOSOPHY THAT WE HAVE, THAT WE IMPLEMENTED BACK IN LATE 2020, UM, WHEN IT, WHEN WE REALLY HAD TO BE ABLE TO FOCUS REALLY SPECIFICALLY AND BE VERY DISCIPLINED ABOUT THE WAY THAT WE WERE DOING THINGS.
WE HAD TO, WE HAD TO MAKE SMART INVESTMENTS DURING TIMES THAT WE WERE LOOKING AT RUNNING, UH, A BUDGET DEFICIT, HARD TO BE ABLE TO DO, BUT REALLY HAD TO LOOK VERY SHARPLY AT HOW WE WERE GONNA GET THAT RETURN ON AN INVESTMENT.
NOW, IF YOU LOOK IN THE REAR VIEW MIRROR, UH, A LOT OF THOSE INVESTMENTS REALLY HAVE PAID OFF.
UH, WE HAVE TO STAY, UH, STRONG.
WE HAVE TO STAY AHEAD OF OUR COMPETITION.
OUR COMPETITION IS, IS, IS, IS ADVANCING ALL THE TIME.
BUT I THINK WE DID A LOT OF THOSE RIGHT THINGS AS WE WENT, WENT THROUGH THAT PROCESS.
UM, I'D MENTIONED A LITTLE BIT ABOUT OUR 2022 BUDGET.
UM, SO NOW I'M GONNA HAND IT OVER TO OUR CFO FRANK WILSON TO TALK A LITTLE BIT ABOUT, UH, HOW WE'RE GONNA FINISH FOR THIS YEAR.
COUNCIL MEMBERS, UM, THE STORY BEHIND THESE NUMBERS REALLY COME DOWN TO NUMBERS.
UM, 150, UH, PLUS EVENTS AT THE GEORGE R. BROWN.
AGAIN, WE'RE IN THE CONVENTION, IN THE CONVENING BUSINESS THAT, UH, THAT 150
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PLUS EVENTS REPRESENTS 1.2 MILLION PEOPLE BY THE END OF THE YEAR.THOSE ARE PEOPLE COMING BACK TOGETHER.
THAT'S THE, UH, THE PENT UP DEMAND THAT'S BEING UNLEASHED IN OUR MARKET.
UH, AS MICHAEL MENTIONED, UM, UH, WE BROUGHT TO THIS BODY A, UH, A DEFICIT BUDGET LAST YEAR OF $13.2 MILLION.
WE ARE GONNA FINISH THE YEAR IN THE BLACK.
WE EXPECT TO FINISH 1.5 MILLION IN THE BLACK OF REVENUES IN EXCESS OF EXPENSES.
THAT'S LARGELY BECAUSE, UH, OUR MAJOR REVENUES HAVE OVERPERFORMED, NOT JUST OUR PARKING REVENUES, WHO THAT STILL STRUGGLE, BUT, UM, PRIMARILY HOT IS GONNA BEAT BUDGET BY TWO TO $3 MILLION.
AND THE HILTON IS REALLY DOING GREAT GUNS.
THEY'RE GONNA OVERPERFORM THEIR BUDGET BY FIVE OR $6 MILLION THIS YEAR.
SO THOSE ARE THE MAJOR REVENUES THAT ARE MAKING A BIG DIFFERENCE ON THE OPERATING SIDE.
OUR OPERATING EXPENSES ARE WELL MANAGED, AND IN FACT, WE EXPECT TO FINISH THIS YEAR WITH OPERATING EXPENSES LESS THAN 2019, WHICH WAS PRE PANDEMIC.
UH, WITH THAT, I'LL TURN IT BACK OVER TO MICHAEL.
AND ON THE NEXT SLIDE, I, I THINK IT'S IMPORTANT TO REMEMBER WHERE WE CAME FROM.
UM, THE DEPTHS OF THE PANDEMIC.
AND IF YOU LOOK AT, UH, UH, WHAT IS IN GREEN ARE OUR CORE, UH, BUSINESS REVENUES BROKEN OUT FROM FEMA REIMBURSEMENTS AND OTHER THINGS THAT WERE POST HARVEY, UH, LESS THAN $100 MILLION IN 2020.
UH, AND LOOKING AT THIS YEAR, AND THEN AHEAD TO NEXT YEAR, NEARLY $208 MILLION OF PROPOSED BUDGETED REVENUES, UH, FOR 2023, THAT IS A DRAMATIC COMEBACK, UH, FOR OUR, OUR CORE BUSINESSES.
AND EVEN $23 MILLION AHEAD OF WHERE WE WERE, UH, EVEN PRE PANDEMIC IN, IN 2019.
SO, REALLY IMPORTANT TO REMEMBER WHERE WE CAME FROM, BUT WHERE WE'RE, WHERE WE ARE TODAY AND WHERE WE'RE HEADED.
UM, OUR PROCESS AT HOUSTON FIRST, UM, UM, STARTS, UH, WITH A VISIT WITH THE MAYOR.
UH, TALK ABOUT WHERE WE'RE GOING.
WE HAVE A, A, A PROCESS, UH, WHERE WE HAVE COMMITTEES OF OUR BOARD THAT DO A DEEP DIVE INTO EACH SECTION OF OUR, OF OUR BUSINESS, UH, AND WHICH, WHICH CONCLUDES WITH OUR FINANCE COMMITTEE, UH, ULTIMATELY APPROVING THE, UH, THE CORPORATION BUDGET, AND THEN ULTIMATELY TO THE BOARD OF DIRECTORS WHO, UH, WILL CONSIDER THE BUDGET BEFORE WE COME OVER HERE TO, TO CONSIDERATION FOR, FOR COUNCIL.
EVERY STEP OF THE WAY HERE, UH, WAS APPROVED, UM, UNANIMOUSLY NOW FOR OUR PRIORITIES FOR, FOR NEXT YEAR.
UH, YOU'VE HEARD ME, UH, YOU'VE, YOU'VE HEARD THE MAYOR TALK ABOUT OUR UNIFIED BRAND THAT WE'VE BEEN WORKING ON, IMPORTANT THAT WE CAN GET AS MANY VOICES BEHIND THAT UNIFIED BRAND.
IT MAKES US STRONGER AS A DESTINATION.
AND FOR THE MESSAGE THAT WE'VE, THAT WE'VE GOT OUT THERE, WE'LL BE FOCUSING SHARPLY ON THAT, NOT ONLY FOR NEXT YEAR, BUT FOR IN THE, IN THE YEARS AHEAD.
WE HAVE HIGH PROFILE EVENTS NEXT YEAR, LIKE THE FINAL FOUR IN APRIL.
UH, WE HAVE A FULL CONVENTION CALENDAR.
THERE'S A LOT OF THINGS, UH, AND OPPORTUNITIES AND PLATFORMS BY WHICH WE CAN DRIVE THAT MESSAGE.
WE'LL BE VERY FOCUSED ON THOSE HIGH PROFILE EVENTS WHERE THEY HAVE A LOT OF MEDIA ATTENTION TO BE ABLE TO PUT, PUT HOUSTON CENTER STAGE.
MEXICO WILL CONTINUE TO BE A FOCUS FOR US.
UM, UH, 70% OF OUR INTERNATIONAL TRAVELERS TO HOUSTON COME FROM MEXICO.
I TALKED ABOUT THIS LAST YEAR.
I'M TALKING ABOUT IT THIS YEAR.
I'LL BE TALKING ABOUT IT NEXT YEAR.
WE HAVE A HUGE OPPORTUNITY THERE.
WE WANT TO GET BACK TO NUMBER ONE POSITION, UM, AS IT RELATES TO THE MEXICAN TRAVELER TO, TO US CITIES.
AND WE'LL BE, UH, AGAIN, DOING OUR MEXICO MISSION NEXT YEAR, AS WE DID THIS YEAR, WHICH TURNED OUT TO BE QUITE SUCCESSFUL.
I MENTIONED THAT THE, UH, MAYOR STATE OF THE CITY, UH, THAT WE WOULD BE DOING A 10 YEAR DESTINATION DEVELOPMENT PLAN THAT WILL BE A MONTHS LONG PRO, UH, PROCESS NEXT YEAR WITH A LOT OF FOLKS AT THE TABLE.
WHERE DO WE WANNA BE IN 10 YEARS AS A DESTINATION? HOW CAN WE GET BETTER? WHAT ARE SOME BIG DREAMS THAT WE MAY BE ABLE TO HAVE? UM, SO BE WORKING THROUGH THAT, UH, THE MAJORITY OF NEXT YEAR, AND HOPEFULLY WE'LL HAVE SOMETHING REALLY, MAYBE Q3, UH, OF NEXT YEAR TO BE ABLE TO, TO REPORT OUT ON.
UH, THE VISITOR EXPERIENCE IS VERY IMPORTANT FOR OUR BUSINESS.
WE WANT PEOPLE LEAVING HOUSTON VERY HAPPY.
WE'VE GOT THE FRIENDLIEST PEOPLE YOU WILL FIND ANYWHERE.
WE HAVE GREAT DESTINATIONS, WE'VE GOT GREAT HOTELS, THE BEST RESTAURANTS ANYWHERE, BUT WE HAVE TO THINK ABOUT THOSE OTHER PIECES THAT MAYBE MAKE, MAKE THE VISITOR EXPERIENCE EVEN BETTER.
WE'LL BE, UH, INVESTING IN DOING THAT WORK, GETTING THE DATA BACK.
HOW CAN WE HELP OUR HOSPITALITY PARTNERS AND HOW CAN WE BE AN EVEN BETTER, UM, UM, VISITOR DESTINATION.
UH, WE'RE GOING MUCH, UH, UH, STRONGER INTO OUR DIGITAL MARKETING.
WE DID THAT PRE PANDEMIC, BUT DURING THE PANDEMIC, REALLY, REALLY WE'RE ABLE TO PERFECT A LOT OF THOSE, UM, UH, UH, OPERATIONS THAT WE HAD.
IT'S A VERY SOPHISTICATED WAY TO BE ABLE TO, TO TARGET THE CONSUMERS, BE ABLE TO GET 'EM THE RIGHT MESSAGE, UH, IN IT'S HIGHLY EFFICIENT WAY TO BE ABLE TO, TO INVEST OUR MONEY, UH, ALONG WITH THAT SOCIAL MEDIA INFLUENCERS, UH, TO BE ABLE TO AUTHENTICALLY BE ABLE TO TELL HOUSTON STORY CAN HELP AUGMENT THE THINGS THAT WE, THAT WE DO.
OUR, OUR CONVENTION SALES, UH, WILL BE, WILL BE FOCUSING ON OUR OUT YEARS, UM, UH, LARGE CITYWIDE CONVENTION SALES PACE TO GET THAT BACK UP.
UH, ALL OF OUR COMPETITORS SEEING THE SAME THING.
UH, THE OUT YEARS HAVE REALLY NOT BEEN BOOKING AT THE SAME PACE THAT THEY HAVE BEEN, BUT WE BELIEVE THAT MEETING PLANNERS, NOW THAT THEY'VE GOT 21 AND 22 BEHIND
[00:25:01]
THEM, WE'LL START LOOKING AT THAT AGAIN.BUT IN THE MEANTIME, WE HAVE A LOT OF OPPORTUNITY AND DEMAND FOR WHAT WE WOULD CALL ONE HOTEL PIECES OF BUSINESS.
THOSE ARE MAYBE 100, 200 PERSON MEETINGS THAT REALLY CAN HELP, UH, DELIVER A LOT OF VALUE BACK TO OUR HOTELS, IN OUR RESTAURANTS, IN OUR, IN OUR HOSPITALITY COMMUNITY.
OUR LEAD DEMAND FOR ONE HOTEL PIECES OF BUSINESS IS SURPASSING WHAT IT WAS PRE PANDEMIC.
SO WE'VE ADJUSTED OUR STAFFING AND, AND, AND OUR, OUR PRIORITIES TO MAKE SURE THAT WE CAN TAKE ADVANTAGE OF THAT FOR, FOR 2023.
YOU ALL KNOW WE'RE BIDDING ON MEGA EVENTS LIKE THE DNC AND THE RNC AND OTHERS OF THOSE MAGNITUDE.
THOSE ARE GREAT OPPORTUNITIES FOR HOUSTON.
HOUSTON DOES REALLY WELL AT BIG EVENTS.
AND THAT'S A SWEET SPOT FOR US TO CONTINUE TO PURSUE.
ANNUAL EVENTS IS ALSO IMPORTANT, UH, EVENTS THAT CAN HAVE THAT ANNUAL ECONOMIC IMPACT AND HELP DRIVE OUR BRAND.
WE'LL BE WORKING VERY HARD TO DEVELOP A NATIONAL LEVEL JUNETEENTH CELEBRATION.
UH, I KNOW THERE'S A LOT OF CELEBRATIONS AROUND JUNETEENTH IN OUR COMMUNITY, BUT WE WANNA MAKE SURE THAT WE ARE THE LEAD DESTINATION FOR CELEBRATING JUNETEENTH IN THAT HISTORY.
UM, HERE IN, IN THE HOUSTON REGION.
ALSO A WINE AND FOOD FESTIVAL AND OTHER, OTHER OPPORTUNITIES THAT WE HAVE FOR, FOR ANNUAL EVENTS.
YOU HAVE SEEN LYNN WYATT SQUARE FOR THE PERFORMING ARTS HAS BEEN UNDER CONSTRUCTION FOR SOME TIME.
WE HAVE NOT BEEN IMMUNE TO SUPPLY CHAIN DISRUPTIONS AND OTHER THINGS THAT HAVE THAT HAVE COME THERE.
WE WILL BE OPENING, UH, UH, LYNN WYATT SQUARE IN APRIL.
SO WE'RE VERY EXCITED ABOUT THAT.
I KNOW OUR THEATER DISTRICT PARTNERS ARE VERY EXCITED ABOUT THAT AS WELL.
THAT WILL INJECT SIGNIFICANT VIBRANCY INTO THE THEATER DISTRICT.
WE'LL BE PROGRAMMING THAT THROUGHOUT THE YEAR AND REALLY MAKE IT A WONDERFUL SPACE, NOT ONLY FOR HOUSTONIANS, BUT ALSO FOR, FOR VISITORS ALIKE.
I THINK OUR TEAM HAS DONE A REALLY GREAT JOB OF, OF, OF CELEBRATING OUR HERITAGE MONTHS.
UH, WE ARE THE MOST DIVERSE CITY IN THE UNITED STATES.
I THINK IT'S IMPORTANT THAT WE CELEBRATE THESE MONTHS, UH, THROUGH PROGRAMMING COMMUNICATION, NOT ONLY INTERNALLY, BUT THEN ALSO EXTERNALLY.
YOU'LL SEE THAT NEXT YEAR AND THEN THE YEARS THAT FOLLOW.
UM, AND THEN FINALLY, UH, TV AND FILM.
UH, WE'VE GOT GREAT OPPORTUNITY THERE.
WE NEED HELP FROM OUR FRIENDS AT THE STATE.
WE'LL BE WORKING ON THAT, UH, AT THE LEGISLATIVE, UH, SESSION UPCOMING TO SEE IF WE CAN GET A STRONGER INCENTIVE PUT IN PLACE.
UH, WE'RE NOT ABLE TO REALLY COMPETE WITH LOUISIANA, GEORGIA, ILLINOIS, NEW MEXICO, OTHER STATES THAT REALLY HAVE STRONG INCENTIVES PUT IN PLACE.
SO WE'LL BE WORKING WITH, UH, WITH OUR PARTNERS ALSO IN FORT WORTH, DALLAS, SAN ANTONIO, AND AUSTIN, TO SEE IF WE CAN GET BEHIND SOMETHING THAT, AND IN AUSTIN THAT WILL HELP DELIVER THOSE THINGS.
SO, YOU KNOW, THERE'S A LOT THAT WE DO.
WE HAVE A LOT OF THINGS THAT WE'LL BE DOING IN THE UPCOMING YEAR, BUT THAT'S A SAMPLING OF, OF OUR PRIORITIES AS WE'LL GO INTO 2023.
AND NOW I'LL TURN IT OVER TO FRANK TO TALK ABOUT HOW WE BUILT THE BUDGET THAT WILL SUPPORT THOSE PRIORITIES.
WELL, WHILE WE CERTAINLY EXPECT THAT WE'RE GONNA SEE CONTINUED GROWTH IN REVENUES THIS YEAR, 22 WAS REALLY ABOUT RECOVERY.
UH, NEXT YEAR IS REALLY GONNA BE ABOUT GROWTH AND RESILIENCE.
UM, BUT WE, IT'S NOT THAT WE DON'T HAVE SOME SIGNIFICANT, UH, UH, EXPENSE GROWTH THAT WE HAVE TO RESPOND TO.
UH, THE, THE BIGGEST, UH, AND ONE THAT I'D LIKE TO POINT OUT, UM, IS THE, YOU'RE ALL AWARE OF THE CITY'S, UH, SETTLEMENT OF THE PENSION LITIGATION.
WE'LL BE BUDGETING FOR THAT FOR THE ENTIRE YEAR.
IT'S THE LEGACY LIABILITY ASSOCIATED WITH THAT, UH, WILL COST, UH, THIS NEXT YEAR'S BUDGET, $3.4 MILLION.
WE ALSO MADE A POLICY DECISION AND THAT, UH, NOT ONLY WOULD OUR VENDORS PARKING JANITORIAL, UH, FOOD AND BEVERAGE, UH, SECURITY, BUT ALSO THE HILTON, ALL OF THEIR EMPLOYEES WILL HAVE A MINIMUM OF A $15 HOUR PER PER PAY.
THAT'LL BE $3.5 MILLION IN INCREMENTAL EXPENSE FOR NEXT YEAR.
UH, WE ALSO EXPECT TO HAVE $6.8 MILLION OF ADDITIONAL BORROWING COSTS, AND THAT'S A FUNCTION OF, UH, HIGHER INTEREST RATE ENVIRONMENT, AS WELL AS WE'RE GONNA DEBT FUND SOME SIGNIFICANT CAPITAL PROJECTS NEXT YEAR.
AND LASTLY, UH, AS YOU'RE ALL AWARE, WE, UH, WE COLLECT THE HOT AS THE CITY'S, UH, AGENT FOR HOT COLLECTION, BUT WE TURN AROUND AND WE SEND 19.3% TO THE CITY.
THE INCREMENT FROM WHICH, UH, FROM THIS YEAR'S 86 APPROXIMATE, UH, HOT COLLECTIONS VERSUS 99 MILLION THAT WE EXPECT TO COLLECT NEXT YEAR, THAT'LL BE ABOUT $2.2 MILLION.
SO, AL TOW, THERE ARE ABOUT $16 MILLION OF INCREASED EXPENSE ASSOCIATED WITH WHAT WE'RE GONNA HAVE TO DO WITH OUR BUDGET NEXT YEAR.
UM, THIS NEXT SLIDE IS KIND OF, UH, SHOWING YOU JUST KIND OF THE VERY, UH, HIGH LEVEL, 30,000 FOOT LEVEL THAT WE, WE ARE BUDGETING $207.6 MILLION IN REVENUES VERSUS $206 MILLION IN EXPENSES, UH, THAT SHOULD PRODUCE, AS MICHAEL'S, UH, ALLUDED TO ABOUT $1.6 MILLION OF REVENUES IN EXCESS OF EXPENSES.
WE'RE ALSO PLANNING TO DO IT, BE RESPONSIVE TO, UH, THE CHAIR'S, UH, DEFERRED MAINTENANCE COMMENT BY SPENDING $29 MILLION IN OUR CAPITAL BUDGET TO, UH, RESPOND TO OUR, THE NEEDS IN OUR, UH, FACILITIES.
UH, I WON'T GO INTO ALL THE ASSUMPTIONS IN THE BUDGET 'CAUSE THEY'RE LISTED HERE, BUT WE ARE NOT ASSUMING A RECESSION NEXT YEAR.
[00:30:01]
THAT INFLATION IS STILL, UH, RAVAGING THE ECONOMY IN HOUSTON AND ALL OVER THE WORLD ACTUALLY.AND THAT THERE WILL BE A RISING INTEREST RATE ENVIRONMENT THAT WE'RE GONNA HAVE TO, UH, WORK WITHIN AND BE VERY MINDFUL OF.
WITH THAT, UH, AS MICHAEL SUGGESTED, WE'RE GONNA BRING OUR FIRST BALANCED BUDGET BEFORE YOU IN THREE YEARS.
UH, THAT'S LARGELY 'CAUSE OF GROWTH IN OUR, UH, MAJOR REVENUES FROM HOT GROWING ABOUT 11 AND A HALF MILLION DOLLARS FROM THIS YEAR'S FORECAST.
UH, AS WELL AS HILTON, WE EXPECT NET CASH FROM THE HILTON TO BE AROUND $43.4 MILLION VERSUS, UH, 35 THIS YEAR.
SO, SIGNIFICANT GROWTH THERE, BUT ALSO GROWTH IN, IN PARKING, PARKING REVENUE IS, IS GONNA CONTINUE TO FACE SOME HEADWINDS AS, UM, UH, PEOPLE CONTINUE TO ENJOY THE FLEXIBLE WORK SCHEDULE.
BUT WE'RE STARTING TO SEE GROWTH AND CREATIVE PRICING IN HOW WE, UH, UH, WELCOME PEOPLE WHO WANT TO COME TO WORK ONLY THREE DAYS A WEEK.
SO WE'RE, WE'RE DOING DYNAMIC PRICING TO BE RESPONSIVE TO THAT NEED AND WIN THOSE CONTRACT CUSTOMERS BACK.
OUR EXPENSE GROWTH IS, IS NOT, IS VERY CONSISTENT WITH, UH, OUR REVENUE GROWTH.
OUR REVENUES AND EXPENSES ARE HIGHLY CORRELATED.
MORE PEOPLE IN THE BUILDING, THE MORE JANITORIAL, THE MORE SECURITY, UH, THE MORE FOOD WE SERVE.
SO THOSE EXPENSES GROW ALONG WITH THAT.
UH, WHILE THE EXPENSE, THE OPERATING EXPENSE GROWTH LOOKS LIKE IT'S SIGNIFICANT AT $11.5 MILLION, ACTUALLY, WHEN YOU COMPARE IT TO PRE PANDEMIC LEVELS IN 2019, IT'S ONLY ABOUT $2.6 MILLION.
THAT'S SIGNIFICANT IN, IN THE RES, IN, IN MOSTLY BECAUSE INFLATION HAS A, HAS HAD AN IMPACT ON OUR BUDGET, JUST LIKE EVERYONE ELSE'S.
UH, WITH THAT, I'M HAPPY TO TURN IT OVER TO MICHAEL AND ANSWER ANY QUESTIONS THAT YOU MIGHT HAVE.
BEFORE WE GO TO COUNCIL MEMBER QUESTIONS, I'D LIKE TO ACKNOWLEDGE, UH, A GROUP OF YOUNG MEN THAT WE HAVE IN THE BACK OF OUR COUNCIL CHAMBERS.
THESE ARE THE YOUNG MEN FROM THE JUNIOR GENTS PROGRAM AT BUDWIG INTERMEDIATE SCHOOL IN ALE INDEPENDENT SCHOOL DISTRICT.
WELCOME, WELCOME TO THE CITY COUNCIL CHAMBERS.
I HAVE MET YOU GENTLEMEN AT, UH, AROUND 10 O'CLOCK THIS MORNING.
I KNOW THAT YOU WERE GETTING READY TO GO IN AND TALK WITH MAYOR SYLVETA TURNER.
AND, UH, WE DID A PRETTY GOOD JOB OF, UH, REALLY MAKING HIM MAD AT US FOR AN HOUR.
SO HOPEFULLY HE WAS IN GOOD SPIRITS ONCE HE MET YOU.
SO, AND I GET, I'M GETTING TWO THUMBS UP FROM IT.
SO, UH, WELCOME TO, UH, TO CITY HALL.
GLAD TO HAVE YOU A PART OF IT.
AND, UH, I REALLY, YOU KNOW, APPRECIATE YOUNG GENTLEMEN WEARING WHITE SHIRTS AND TIES.
SO I'D LIKE, I'M AN OLD FUDDYDUDDY, BUT I'D LOVE TO SEE MORE OF THAT IN THE WORLD THAT WE, WE LIVE, LIVE IN.
UH, WE'LL GO TO COUNCIL MEMBER DAVID ROBINSON FOR YES.
I, I WANNA WELCOME, UH, THESE JUNIOR GENTS TO THE CHAMBER AS WELL.
AND YOU ALL HAVE SAT THROUGH A LITTLE BIT OF SOME BIG NUMBER CRUNCHING THAT YOU JUST HEARD FROM THE FOLKS WHO ARE UP HERE AT THE PODIUM, UM, AND THEIR 'EM.
UM, AND THEY'RE RESPONSIBLE FOR THE VISITORS AND CONVENTIONS THAT COME TO HOUSTON.
AND I WANNA CALL ON THE CEO, UH, MY FRIEND MICHAEL, AND SEE IF YOU HAVE ANY WORDS OF INSPIRATION FOR THESE YOUNG PEOPLE WHO ARE GONNA INHERIT THE CITY OF HOUSTON AS THEY GROW OLDER.
AND WHAT WE CAN EXPECT, MAYBE FOR THEM WITH REGARD TO SOME OF THE THINGS YOU ALL DO AT HOUSTON.
FIRST, THERE'S SO MUCH EXCITING STUFF GOING ON, YOU GUYS, AND THESE TWO FOLKS UP HERE HELP DELIVER IT.
UM, SO SOME OF THOSE CONVENTIONS THEY MIGHT BE INTERESTED IN.
SO, UM, UH, ONE, I WILL TELL YOU THAT, THAT HOUSTON IS THE MOST WELCOMING CITY IN THE WORLD.
IT IS A DYNAMIC CITY, IT'S A DIVERSE CITY, AND THE FUTURE OF HOUSTON IS INCREDIBLY BRIGHT.
SO IF YOU'RE GROWING UP HERE, IT'S A GREAT OPPORTUNITY.
I DID NOT GROW UP HERE, BUT I GOT HERE AS FAST AS I COULD 20 YEARS AGO.
UM, IT'S, IT'S A GREAT CITY TO GROW UP, AND THERE'S LOTS OF OPPORTUNITY, UM, THAT, THAT THAT ABOUNDS.
UM, YOU KNOW, THERE'S A LOT THAT WE DO.
THERE'S, THERE'S, THERE'S CULINARY EVENTS THAT WE'LL BE BRINGING NEXT YEAR.
THERE IS, UH, THE FIRST ROBOTICS COMPETITION, WHICH IS A STEM SCIENCE, TECHNOLOGY, ENGINEERING, AND MATH COMPETITION.
THAT'S SORT OF LIKE THE OLYMPICS OF, OF STEM THAT WILL BE HERE IN APRIL, WHICH IS REALLY INTERESTING.
AND I WOULD INVITE ALL OF YOU, UH, TO BE ABLE TO COME TO THAT.
WE'LL FOLLOW UP AND MAKE SURE WE GET YOUR CONTACT INFORMATION TO BRING YOU DOWN TO THE GEORGE R. BROWN CONVENTION CENTER AND SEE 25,000 STUDENTS COMPETING IN STEM.
SO I WOULD INVITE YOU ALL TO BE ABLE TO COME DOWN TO THAT.
UM, AND ALL OF OUR EVENTS THROUGHOUT THE YEAR, THERE'S, THERE'S PLENTY THAT'S GOING ON, UH, WITH, YOU KNOW, MICHAEL, YOU CAN'T FORGET COMIC PALOOZA.
COUNCIL MEMBER COMIC PALOOZA, IF YOU LIKE, IF YOU LIKE POP CULTURE, IF YOU LIKE THINGS THAT ARE ON TV AND MOVIES, PLEASE COME DOWN.
IT'LL BE MEMORIAL DAY WEEKEND, UM, AT THE GEORGE R. BROWN, ALONG WITH 50,000 OTHER, UH, FOLKS, SOME THAT MAY BE DRESSED UP, SOME THAT MAY BE NOT, UH, DOWN AT THE GEORGE R. BROWN.
THANK YOU FOR REMINDING ME OF THAT.
[00:35:01]
UH, FIRST OF ALL, THANK Y'ALL FOR THE GREAT PRESENTATION.UH, AND LET ME START OFF BY THANKING HOUSTON FIRST IN REGARDS TO THE NEW CONTRACT FOR THE JANITORS THERE AT THE, UH, GEORGE R. BROWN, UH, STARTING JANUARY 1ST, LIKE YOU HAD MENTIONED, UH, $15, UH, CONTRACT.
SO THANK Y'ALL SO MUCH, UH, FOR THAT.
ALSO, UH, THANK YOU, THANK YOU FOR REINVESTING IN THE WORTHHAM.
I KNOW THAT THAT WAS TERRIBLY IMPACTED IN REGARDS TO, UH, THE FLOODING.
UH, BUT, BUT THANKS TO HOUSTON FIRST, UH, THE WORTHHAM IS BACK AND RUNNING AND, AND, AND PROVIDING, UH, PROGRAMMING AND, AND, AND, AND MUSIC AND THEATER AND WHAT HAVE YOU.
SO THANK YOU SO MUCH FOR THAT.
UM, AND ALSO THANK YOU FOR YOUR SUPPORT ON DE LOS MUTOS.
UH, IT'S AN OUTSTANDING, UH, EVENT THAT WE'RE NOW HAVING HERE IN THE CITY OF HOUSTON.
WE HAD OUR SECOND ANNUAL, UH, UNFORTUNATELY, UH, WE WERE OUTDONE BY THE, UH, WORLD SERIES, SO WE DIDN'T HAVE THE, UH, THE, UH, SECOND NIGHTTIME PARADE.
UH, BUT WE STILL HAD A GREAT FESTIVAL THAT EVENING.
UH, AND, UH, LOOKING FORWARD TO THE THIRD ANNUAL THIS COMING, UH, NEXT YEAR.
UM, AND ALSO, UM, Y'ALL ARE BEING A LITTLE MOD MODEST IN REGARDS TO DESTINATION DEVELOPMENT.
UH, THE, UH, TRAVEL AND LEISURE, UH, INCLUDED HOUSTON AS ONE OF THE 50 INTERNATIONAL DESTINATIONS TO GO TO IN 2023.
UH, AND PROUD TO SAY THAT THE, UH, HOUSTON BOTANIC GARDEN WAS, UH, ON, ON THE TOP OF, UH, THE DESTINATIONS IN, IN THE CITY OF HOUSTON, WHICH I'M PROUD TO SAY, AS IN DISTRICT, I, UH, SO, UH, THANK YOU'ALL FOR EVERYTHING THAT Y'ALL DO, UH, HERE IN THE CITY IN HOUSTON, AND, AND TO MAKE SURE THAT, UH, THE WORLD KNOWS THAT WE ARE AN OUTSTANDING CITY, UH, IN SOME PLA IN A PLACE THAT PEOPLE NEED TO COME AND VISIT.
UH, AND KNOWING THAT WE ARE THE MOST DIVERSE CITY IN THE WORLD, UH, TO TOP THAT OFF.
SO THANK Y'ALL AGAIN FOR EVERYTHING Y'ALL DO.
UH, BEFORE THAT, I'D LIKE TO WELCOME TO THE HORSESHOE COUNCIL MEMBER ABBY CAYMAN.
AND THANK YOU FOR THE PRESENTATION, AND THANKS FOR COMING BY AND BRIEFING AND, AND THE DETAIL THAT YOU WENT IN.
UH, THIS IS A VERY HIGH LEVEL BUDGET, BUT TO BREAK DOWN THE DETAILS WAS, WAS REALLY IMPORTANT AND GREAT TRENDS AT, AS EVERYBODY'S SAYING, UM, THERE AT HOUSTON.
UM, UH, KIND OF RELATED TO THE, TO THE, I'M TRYING TO MAKE THIS QUESTION RELATED TO THE BUDGET, BUT, UH, IT TO THE 360 DEGREE VISITOR EXPERIENCE, I KNOW, UM, HOUSTON FIRST IS SOMEWHAT INVOLVED, AT LEAST ON A MAINTENANCE AGREEMENT FOR THE LIGHTS OVER 59.
WHAT'S, CAN YOU GIVE ME AN UPDATE ON THAT? UM, SURE.
I DROVE BY, DROVE THE OTHER DAY DOWN.
'EM, AND THEY'VE BEEN OUT FOR A WHILE.
I KNOW, UM, MONTROSE TURS, OUR MANAGEMENT DISTRICTS INVOLVED TOO.
AND CAN YOU JUST GIMME, WHAT'S HOUSTON'S, FIRST OF ALL? WELL, I THINK IT IS, IT WAS, IT WAS BEFORE MY, MY TIME, BUT I UNDERSTAND THAT THE MONTROSE MANAGEMENT DISTRICT FOLDED COUNCIL MEMBER, IS THAT CORRECT? UM, WHICH THEN THE RESPONSIBILITY, UH, FOR THAT WAS SHIFTED TO, TO HOUSTON FIRST.
UM, IT IS A COMPLICATED, UM, ISSUE.
THERE'S A COMPLICATED LIGHTING SYSTEM.
WE HAVE BEEN WORKING OVER THE PAST NUMBER OF WEEKS AND MONTHS ON AN ASSESSMENT, WHICH WE BELIEVE THAT WE WILL HAVE THE FINAL ASSESSMENT SHORTLY OKAY.
AS TO WHAT THAT, UH, REPAIR MAY LOOK LIKE.
UH, I, I UNDERSTAND THAT THAT WAS, UM, UM, WAS SOMETHING THAT WAS, UM, UH, WANTED TO GET DONE BEFORE THE SUPER BOWL.
UM, AND THAT WAS MAYBE ON A SHORT TIMELINE TO BE ABLE TO GET THAT DONE.
UM, BUT THERE ARE SIGNIFICANT ISSUES AND, AND PROBLEMS WITH IT THAT WE'VE BEEN LOOKING AT AND TRYING TO IDENTIFY NOT ONLY WHAT THE FIX WOULD BE, BUT WHAT WOULD BE THE COST RELATED TO THAT.
AND I CAN'T REMEMBER WHERE I READ THIS OR SOMETHING CAME ACROSS MY DESK ABOUT HOT TAXES AND PARKS.
I KNOW WE DON'T USE HOT TAXES FOR ANY PARKS, BUT, BUT DO, IS THAT A, IS THAT A ELIGIBLE, UM, USE DEPENDING ON WHAT THE PARK IS OR WHERE IT IS CURRENT? CURRENTLY NOT.
THERE, THERE ARE SOME SMALL CITIES AND MUNICIPALITIES ACROSS THE STATE THAT HAVE, THAT HAVE TRIED TO PURSUE THAT, UM, UM, UH, FOR THE USE OF HOT TAX.
BUT CURRENTLY IT IS NOT, UM, STATE'S PRETTY SPECIFIC ABOUT HOW THOSE DOLLARS NEED TO BE SPENT.
UM, UH, BUT CURRENTLY IT'S NOT.
COUNCIL MEMBER HULLABALU, RAY RAY, THAT WOULD BE ME,
UH, FIRST OFF, I APOLOGIZE FOR BEING LATE.
I WAS TIED UP IN ANOTHER MEETING, BUT I JUST WANTED TO, UH, PUBLICLY THANK YOU ALL AND THE ENTIRE STAFF, UH, FOR EVERYTHING THAT HOUSTON FIRST HAS DONE.
AND THE PROJECTIONS ARE COMFORTING, UH, RIGHT, COMING OUT OF THE PANDEMIC.
UH, I KNOW, AND EVERYONE AROUND THIS HORSESHOE KNOWS WHAT Y'ALL HAVE BEEN THROUGH AND WHAT YOUR STAFF HAS BEEN THROUGH.
UM, SO THANK YOU FOR CONTINUING THE WORK, DESPITE ALL OF THE CHALLENGES AND US MOVING
[00:40:01]
FORWARD IN THAT DIRECTION.UH, I'M SO HAPPY TO HEAR ABOUT THE $15, UH, WAGE INCREASE, UH, FOR JANITORIAL.
UH, I HAVE A FOLLOW UP QUESTION ON THAT.
AS IT RELATES TO EITHER HOUSTON FIRST STAFF OR CONTRACTED EMPLOYEES.
HAS THERE BEEN ANY DISCUSSION OR MOVEMENT ON, UH, PAID PARENTAL LEAVE? YEAH, THAT HAS BEEN SOMETHING THAT WE HAVE BEEN IN, UH, UH, LOOKING AT INVESTIGATING AT THE, AT THE MANAGEMENT TEAM LEVEL.
UM, WE HAVEN'T GOTTEN TO A POLICY DECISION YET ON THAT, BUT IT IS SOMETHING THAT IS VERY TOP OF MIND FOR US, AND IT'S IMPORTANT THAT WE'RE, WE'RE WORKING ON.
AND I WOULD JUST DO A SPECIAL PLUG IN ENCOURAGING, UM, US TO MOVE FORWARD ON THAT AS WE, YOU KNOW, STARTED OUT THE CITY MOVE TO OUR, OUR CITY EXTENDED BRANCHES, AND THEN HOPEFULLY ENCOURAGING THE PRIVATE SECTOR, WHICH, UH, YOU ALL HAVE A TREMENDOUS INFLUENCE IN.
BUT AGAIN, MY HEARTFELT APPRECIATION, UH, FOR EVERYTHING THAT HOUSTON FIRST IS DOING RIGHT NOW, AND A PHENOMENAL, UM, TRIBUNE EVENT, TEXAS TRIP EVENT, UH, THIS PAST WEEK.
I MEAN, I, I'M SEEING NOW ON THE CALENDAR SO MANY MORE HOUSTON FIRST EVENTS THAT ARE COMING UP, AND IT'S JUST WONDERFUL AND EXCITING.
THANK YOU, COUNCIL MEMBER AND A HECK OF A WIND SATURDAY COUNCIL MEMBER ROBERT GALLEGOS.
AND, UH, TO REPLY TO COUNCIL MEMBER ALCORN'S QUESTION IN REGARDS TO THE BRIDGES ON 59.
I KNOW THAT A FEW YEARS BACK WE HAD, UH, PUBLIC, UH, UH, INDIVIDUALS THAT CAME TO PUBLIC SESSION, UH, AND THEY WERE ASKING TO, UH, BASICALLY THEY, THEY WERE OPPOSING THE, UH, MANTRAS DISTRICT.
SO I'LL LEAVE, I'LL DEFER ALL THAT TO COUNCIL MEMBER CAYMAN IN REGARDS TO ANY UPDATES ON, ON, ON THE MANAGEMENT DISTRICT THERE IN MONTROSE.
UH, BUT THE, UH, MANAGEMENT DISTRICT AT THAT TIME, UH, WAS MAINTAINING THOSE BRIDGES.
UH, AND, UH, WHAT I UNDERSTAND, THEY'RE NO LONGER IN EXISTENCE.
SO THAT'S THE CASE, AND THAT'S WHY IT'S NOT BEING MAINTAINED.
UH, BUT AS ONE OF THE TWO COUNCIL MEMBERS ON, UH, HOUSTON FIRST, UH, REPRESENTING COUNCIL, UH, YOU KNOW, I, I FEEL LIKE WE HAVE TO BE CAREFUL BECAUSE HOUSTON FIRST IS RESPONSIBLE FOR VENUES, UH, IN MY OPINION, NOT TO MAINTAIN BRIDGES ON 59.
UH, BECAUSE THAT, IN MY OPINION, IS OPENING A CAN OF WORMS IN REGARDS TO WHAT ELSE WILL THEY BE RESPONSIBLE FOR IN THE FUTURE FOR MAINTAINING.
UH, SO, SO, UH, AGAIN, I'D LIKE TO DEFER BACK TO COUNCIL MEMBER CAMAN IN REGARDS TO THE MANAGEMENT DISTRICT, UH, UH, IN, IN, YOU KNOW, UM, OR THE MONTROSE MANAGEMENT DISTRICT.
UH, SO AGAIN, YOU KNOW, UM, I THINK WE NEED TO BE, BE, BE CAREFUL IN REGARDS TO HOUSTON FIRST, UH, BEING ASKED TO MAINTAIN THE BRIDGES ON 59.
'CAUSE I MEAN, WHAT I'M HEARING IS GONNA BE OVER A MILLION DOLLARS JUST TO DO SOME REPAIRS, AND, AND THAT DOESN'T INCLUDE FUTURE MAINTENANCE.
SO, UH, SO AGAIN, COUNCIL MEMBER CAMAN, IF YOU HAVE ANY INFORMATION REGARDS TO MONTROSE MANAGEMENT DISTRICT COUNCIL MEMBER ABBY CAMAN, UM, I'M HAPPY TO, UH, SPEAK WITH YOU ALL AND CHAIR PUBLICLY.
ANY UPDATES RELATED TO THE MANAGEMENT DISTRICT? I DON'T HAVE THOSE IN FRONT OF ME, AND I THINK IT WOULD BE BEST TO HAVE THE MOST UP-TO-DATE INFORMATION BEFORE WE'RE TALKING ABOUT THAT PUBLICLY.
UM, 'CAUSE I DON'T WANNA PROVIDE MISINFORMATION RIGHT NOW.
UM, I DO KNOW THAT, YOU KNOW, TO YOUR POINT, UM, PREVIOUSLY THE MANAGEMENT DISTRICT, UM, BECAUSE DUE TO LITIGATION HAD BEEN, UM, DEFUNCT, SO TO SPEAK, AND THAT IS NOT THE CORRECT, UM, DORMANT.
UH, BUT AS IT RELATES TO, I'LL FOCUS SPECIFICALLY ON THE BRIDGES COUNCIL MEMBER.
ALCORN, I APPRECIATE YOU RAISING THAT.
MY OFFICE CONTINUES TO GET INQUIRIES ABOUT IT AS WELL, UM, BECAUSE IT IS SUCH A SPECIAL, UM, ATTRIBUTE TO THE CITY OF HOUSTON, IT'S ICONIC.
UH, OUR BRIDGE IS THERE, AND I THINK IT'S NOT JUST FOR DISTRICT C, BUT FOR ALL OF HOUSTON.
SO REGARDLESS OF WHETHER IT'S HOUSTON FIRST, ANOTHER ENTITY, I THINK WE DO.
AND IT'S THE APPROPRIATE TIME, UH, TO COME TO THE TABLE TO FIND A SOLUTION FOR THAT, IF AT ALL POSSIBLE.
BECAUSE AGAIN, I'M, I'M HEARING FROM RESIDENTS, I'M SURE YOU ARE AS WELL, WHAT'S HAPPENING WITH THE BRIDGES.
SO I DO THINK IT'S IMPORTANT THAT WE GET AN UPDATE OUT TO THEM.
UM, EVEN IF THAT UPDATE IS, HEY, NOTHING'S HAPPENING RIGHT NOW BECAUSE OF X, Y, Z, BUT WE SHOULD BE IN COMMUNICATION ON THAT.
SORRY, NOT TO BELABOR THE BRIDGES, BUT IT'S THEIR TEXT.
IT'S TDOT IT MUST BE INVOLVED TOO.
IT'S, ARE THEY INVOLVED AT ALL IN, IN ANY OF THIS? OKAY.
NO, COUNCIL MEMBER DAVID ROBINSON.
UM, JUST WANTED TO POINT OUT, I WAS ON THE MANAGEMENT DISTRICT BOARD WHEN THE LIGHTS WERE LIT.
I ACTUALLY TOOK PART IN THE PROJECT, AND I THINK WHEN THEY, WHEN THEY CAME ABOUT, THEY, UM, AS YOU MIGHT IMAGINE, THEY WERE EXPENSIVE.
AND, UM, GETTING THEM INSTALLED WAS SOMETHING WHERE WE DID REACH OUT.
WE AS IN THE MANAGEMENT DISTRICT, DISTRICT C, THE NEIGHBORHOOD TO THE CITY, AND THERE WAS A COLLABORATIVE EFFORT WITH MULTIPLE PARTIES
[00:45:01]
TO GET THEM LIT.I THINK, UM, AS A HOUSTON FIRST FORMER BOARD MEMBER, I'LL TELL YOU THAT I THINK THE BRIDGES ARE ICONIC.
THEY HAVE BECOME SYNONYMOUS WITH THE CITY.
THEY LIGHT UP FOR OUR HOLIDAYS.
THEY REPRESENT OUR COLORS, THEY SHARE OUR PRIDE, AND THEY ARE AN IMPORTANT PART OF, UH, OUR IMAGE.
AND THAT'S, FRANKLY, A LOT OF THE BUSINESS THAT, UH, THESE GENTLEMEN ARE IN BEFORE US TODAY.
SO I THINK THE BUDGET IS IMPORTANT FOR THAT.
I AGREE WITH COUNCIL MEMBER GALLEGOS, THAT IT COULD BE A SLIPPERY SLOPE, UH, TO OTHER, UH, THINGS THAT ARE ALSO ICONIC FOR THE CITY AND NOT THE RESPONSIBILITY OF HOUSTON FIRST TO ULTIMATELY, UH, FLOAT THE BILL.
I DO THINK IT IS IMPORTANT TO GET THEM RE-LIT AND, UH, FOR THAT MATTER, I THINK, UM, UM, UH, I'M AWARE OF THE ADMINISTRATION'S INVOLVEMENT IN THIS, AND OVER TIME, UH, THERE NEEDS TO BE A SOLUTION.
SO I, I POINT TO THAT, BUT I, I DO HAVE, UH, A RELATIONSHIP WITH SOME OF THE EXCELLENT DESIGNERS THAT CAME UP WITH THAT, BOTH FROM A LIGHTING STANDPOINT AS WELL AS, UH, SOME OF THE COMPLEX RELATIONSHIPS THAT WERE FORGED, UH, WITH TDOT, UM, WITH THE MANAGEMENT DISTRICT NOW DORMANT, I THINK THAT IS THE RIGHT WORD, COUNCIL MEMBER CAYMAN.
AND, UM, YOU KNOW, FOR THE FIR FUTURE OF THE DISTRICT, THERE'S, THERE'S A LOT TO TO THINK ABOUT WITH THESE.
SO I ALSO WOULD LIKE TO GET AN UPDATE IN FRONT OF ME BEFORE SPEAKING FURTHER.
COUNCIL MEMBER ROBERT GALLEGOS.
UM, WHAT, WHAT I UNDERSTAND IN THE PAST IN REGARDS TO TXDOT IS THAT, THAT THEY ALLOW IMPROVEMENTS AND UNIQUENESS ON, ON, ON DESIGN OF A FREEWAY.
UH, BUT, BUT, BUT WITH THE AGREEMENT THAT THEY WILL NOT MAINTAIN IT.
FOR THIS, IN THIS PARTICULAR INSTANCE, THAT IS CORRECT.
TEXDOT HAS NO, NO FURTHER INVOLVEMENT.
WE HAVE ASKED THEM IF THEY WOULD LIKE TO HELP MAINTAIN THEM.
THEY DECLINED STAFF FROM COUNCIL MEMBER MIKE KNOX'S OFFICE.
ON A DIFFERENT NOTE, TELL US SOME GOOD NEWS.
WHEN IS THE SUPER BOWL COMING BACK?
WHEN IT COMES UP AS TO FUTURE INTEREST, WE CONTINUE TO, UH, LET THE, THE NFL KNOW THAT WE ARE INTERESTED.
UH, I WOULD, I WOULD SAY THAT, UH, IT IS, IT IS BID OUT AND AWARDED THROUGH, UH, AT LEAST 2026 AT THIS POINT.
SO I WOULD SAY LATER THIS DECADE, WE CONTINUE TO EXPRESS OUR INTEREST.
UM, HOUSTON HAS BEEN, AT LEAST IN RECENT MEMORY, UH, 2004 AND 2017, AN OUTSTANDING HOST, UH, OF THE GAME.
THE, THE, THE LEAGUE HAS RECOGNIZED THAT THE OWNERS RECOGNIZE THAT.
UH, AND WE ARE READY, UH, AS SOON AS THE, THE, UH, UH, THE LEAGUE WILL BE READY, WE CONTINUE TO EXPRESS INTEREST.
BUT THIS COMES UP EVERY YEAR, UH, AND WE WORK CLOSELY WITH THE, WITH SPORTS GUARD AND THE, UM, AND THE TEXANS TO CONTINUE TO SHOW THE LEAGUE THAT WE'RE INTERESTED.
THERE ARE NO OTHER COUNCIL MEMBERS IN Q.
UM, YOU GENTLEMEN DO A GREAT JOB.
IT'S WHERE A LOT OF THE COOL STUFF DOES HAPPEN IN THE CITY OF HOUSTON.
AND THIS WEEK WE PUT IN A BID FOR DNC DEMOCRATIC NATIONAL CONVENTION.
I THINK IT'S TOMORROW OR THE, OR THURSDAY WE'LL BE MEETING WITH THE REPUBLICAN NATIONAL CONVENTION FOLKS IN THE CITY.
AND WEATHER LOOKS TO BE PERFECT, AND I HOPE A LOT OF 'EM ARE FROM THE NORTH.
'CAUSE 76 DEGREES IN HOUSTON, TEXAS LOOKS PRETTY APPEALING TO ME.
BUT WE APPRECIATE EVERYTHING YOU'VE DONE OVER THE LAST COUPLE OF YEARS.
IT'S BEEN A TOUGH COUPLE OF YEARS.
AND, UH, COUNCIL MEMBER ROBINSON AND COUNCIL MEMBER GALLEGOS, IT'S BEEN A PLEASURE AND AN HONOR TO WORK WITH YOU ON THIS BOARD.
WE HAD TO TELL A LOT OF PEOPLE NO, WHICH WE DON'T LIKE TO DO.
THEY CAME IN WITH SOME GREAT IDEAS, AND THE HARDEST THING TO DO IS TO TELL 'EM NO, THAT WE DON'T HAVE THE MONEY TO FUND THEIR INITIATIVE.
AND THAT WAS TOUGH, AND I KNOW IS TOUGH ON YOU, GENTLEMEN.
SO, UM, THE FUTURE'S IN FRONT OF US.
I'D LOVE TO START THINKING ABOUT A LONG-TERM PLAN.
YOU KNOW, US THREE HAVE, UH, 12 MONTHS LEFT.
YOU THREE HAVE FOUR YEARS AND 12 MONTHS, SO EXCUSE ME, 12 MONTHS AND 24 DAYS.
SO LONG TERM STRATEGIC PLAN ABOUT WHAT WE CAN DO ON THE SOUTH END OF THE GEORGIA BROWN, AND MAKING SURE THAT WE EXPAND THAT FACILITY TO SERVICE THE NUMBER OF PEOPLE THAT, NUMBER ONE, WANT TO COME INTO THE CITY.
AND NUMBER TWO, UH, HAVE GREAT CONVENTIONS THAT WE CAN HOST, BECAUSE RIGHT NOW WE DON'T COMPETE WITH THE VEGASES, THE NEW ORLEANS, AND SOME OF THOSE CITIES HAVE THE, THAT HAVE THE BIG CONVENTION CENTERS.
BUT FOR WHAT WE HAVE AND THE FACILITIES WE HAVE, THEY'RE BEST OF CLASS.
NO ONE HAS BETTER FACILITIES THAN WE DO.
WE LOOK FORWARD TO A COUPLE OF MONTHS, THE NCAA FINAL FOUR CHAMPIONSHIP NEXT YEAR, THE NCAA CHAMPIONSHIP BA UH, FOOTBALL GAME, AND A NUMBER OF THE, UH, THE GREAT, UH, PROGRAMS THAT YOU GENTLEMEN AND YOU LADIES AT HOUSTON FIRST AND DO AND WORLD CUP IN 2026.
SO I'M BEGGING FOR TICKETS, BUT ANYWAY, BUT
[00:50:01]
KUDOS TO WHAT YOU DO EACH AND EVERY DAY.UM, GREAT PICTURE THAT YOU'VE PAINTED AND, UH, LOOK FORWARD TO PASSING THIS UNANIMOUSLY TOMORROW.
UM, THANK YOU TO ALL OF COUNCIL.
UM, UM, WE HAD SOME REALLY TOUGH TIMES, AS THE CHAIRMAN MENTIONED, UM, AND, AND REQUIRED SOME TOUGH VOTES.
UH, IT ENDED UP BEING THE RIGHT THING AT THE END OF THE DAY FOR THIS COMMUNITY.
AND WE HAVE A VERY PASSIONATE AND COMMITTED TEAM OF PROFESSIONALS THAT CONTINUE TO GO TO WORK EVERY DAY.
UM, FOR THE FOLKS, UM, IN HOUSTON AND ALL AROUND HOUSTON AND, UM, UM, UH, MR. CHAIR, UH, COUNCIL MEMBER GALLEGOS, COUNCIL MEMBER ROBINSON, THE TIME THAT YOU PUT IN, UH, FOR OUR COMMITTEE MEETINGS, THE WORK AND UNDERSTANDING THE WORK THAT WE DO, WE SINCERELY APPRECIATE THAT.
WE COULDN'T DO IT WITHOUT THE SUPPORT, UH, AND THE LEADERSHIP TO ULTIMATELY BE ABLE TO GO, UH, GET THOSE THINGS DONE.
YOU CAN'T DO BIG THINGS WITHOUT THAT KIND OF SUPPORT.
AND FOR THAT, WE REALLY APPRECIATE IT.
UH, WE HAVE ONE PUBLIC SPEAKER SIGNED UP, MR. DOUG SMITH.
FIRST OF ALL, I, THE PLANNED PERSONAL PRIVILEGE, I WOULD LIKE TO SAY HOW PROUD I AM AS A RESIDENT OF ALE TO SEE THE GROUP OF STUDENTS THAT WAS HERE TODAY.
UH, IT'S, WE HAVE A GREAT SCHOOL DISTRICT, AND I THINK THAT'S ONE INDICATION OF THAT.
AND SECONDLY, UH, I HAVE TO GO TO THE WATER WALL IN SEEING THE PICTURE ON THEIR PRESENTATION, I HAD NO IDEA THAT YOU COULD GO INSIDE THE WATER WALL.
UH, SO I'M GONNA GO THERE TO, TO TAKE A LOOK AT THAT.
BUT TO THE PRESENTATION, I TALKED TO FRANK WILSON BEFORE THE MEETING, AND, UH, AS THEY INDICATED, UH, THIS WAS A VERY HIGH LEVEL PRESENTATION.
UH, WE HAVE $200 MILLION WORTH OF REVENUE AND $200 MILLION WORTH OF EXPENSES.
I THINK YOU ALL HAVE HAD A MORE DETAILED, UH, UNDERSTANDING OF THIS, AND I WOULD LIKE TO HAVE THE SAME THING.
SO I'VE ASKED FRANK TO SEND ME THE DETAILED FINANCIALS, AND HE SAID YOU WOULD.
UH, SECONDLY, UH, YOU HAVE IN FRONT OF YOU A COUPLE PAGES.
UH, PAGE ONE, I HAVE HIGHLIGHTED.
FIRST OF ALL, THESE ARE QUESTIONS THAT I HAD AT THE LAST MEETING, AND I APPRECIATE YOU'RE SUBMITTING THEM TO THE FINANCE DEPARTMENT.
UH, THEY SAY IN RESPONSE, THE CITY'S BALLOT PROPOSITIONS HAVE BEEN CALCULATED AND DERIVED IN ACCORDANCE WITH ALL STATE LAWS, NOTABLY THE TAX CODE, ELECTION CODE.
THAT'S NOT WHAT I WAS LOOKING FOR.
WHAT I WAS LOOKING FOR PRIMARILY, AS I INDICATED THE LAST TIME THE STATE LAW INDICATED A MAXIMUM 3.5% INCREASE IN PROPERTY TAXES.
THE FINANCE DEPARTMENT HAS DONE A DETAILED ANALYSIS OF, UH, NO NEW TAXES.
IT'S LIKE A SIX PAGE ANALYSIS.
AND ON THE SECOND PAGE HERE IS THEIR ANALYSIS, UH, ON THE MAXIMUM PROPERTY TAXES THAT THE CITY, THAT'S ANOTHER WORKSHEET.
AND I'D LIKE TO SEE THE WORKSHEET FOR THE THREE AND A HALF PERCENT MAXIMUM THAT IS ALLOWED FOR THE NEW STATE LAW THAT WAS PASSED A COUPLE OF YEARS AGO.
AND JUST TO POINT OUT, I DUNNO, THIS IS JUST A HUGE COINCIDENCE, BUT IF YOU LOOK AT THE FACT THAT, UH, ON PAGE TWO IT SHOWS A POPULATION DECREASE OF 0.7% AND A POPULAR, UH, CPI INCREASE OF 4.2%, THAT IS EXACTLY 3.5%.
AND I DON'T KNOW WHETHER THAT IS JUST A COINCIDENCE OR WHETHER IT RELATES TO THE STATE MAX OF 3.5%, BUT IT CERTAINLY, IF IT'S JUST A COINCIDENCE, IT'S VERY INTERESTING.
SO, BUT IF I COULD GET A DETAILED WORKSHEET ON THE, HOW THEY LOOKED AT COMPLYING WITH THE STATE, UH, THREE POINT A HALF PERCENT MAX, I WOULD APPRECIATE IT.
SO YOU'RE LOOKING FOR THE WORKSHEET FOR THE THREE AND A HALF PERCENT MAXIMUM.
I BELIEVE THAT'S THE RIGHT FIGURE.
WE'LL WORK, WORK WITH FINANCE TO GET YOU THAT.
AND NO OTHER COUNCIL MEMBERS IN QUEUE.
WE'LL GET THAT INFORMATION TO YOU SEEING NO OTHER COUNCIL MEMBERS IN QUEUE.
UM, BEFORE WE ADJOURN, I'D LIKE TO ANNOUNCE THAT THE NEXT REGULARLY SCHEDULED BUDGET AND FISCAL AFFAIRS COMMITTEE MEETING WILL BE ON JANUARY 3RD AT 10:00 AM IF THERE ARE NO OTHER COMMENTS OR QUESTIONS, THIS MEETING IS ADJOURNED.
AND EVERYBODY HAVE A BLESSED HOLIDAY.