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GOOD MORNING,[Budget and Fiscal Affairs on March 7, 2023.]
EVERYONE.TODAY IS TUESDAY ON MY NOTICE.
IT SAYS, TODAY IS TUESDAY, JANUARY 31ST,
IT'S MARCH 7TH, TUESDAY, MARCH 7TH, AND IT IS 10:00 AM I AM MAYOR PRO TEM DAVE MARTIN, AND I CALL THIS MEETING TO ORDER.
I'D LIKE TO WELCOME ALL COUNCIL MEMBERS IN ATTENDANCE.
WE HAVE COUNCIL MEMBER AMY PECK FROM DISTRICT A COUNCIL MEMBER SALLY ALCORN FROM AT LARGE DISTRICT POSITION FIVE, LETITIA PLUMMER AT LARGE POSITION FOUR, MICHAEL KUBOSH AT LARGE, POSITION THREE.
AND EDWARD VICE MAYOR, VICE CHAIR EDWARD POLLARD, DISTRICT J AND STAFF FROM COUNCIL MEMBER ABBY CAYMAN'S.
OFFICE STAFF FROM COUNCIL MEMBER MICHAEL KNOX'S OFFICE, CARLOS S'S OFFICE AND VICE MAYOR PRO TEM MARTHA CASTEX, TATUM'S OFFICE.
IF THERE ARE ANY MEMBERS OF THE PUBLIC THAT WOULD LIKE TO PARTICIPATE IN TODAY'S PUBLIC COMMENT SECTION, THERE'S A SIGNUP SHEET AT THE FRONT DESK.
MY STAFF MEMBER WILL BE MONITORING THE PUBLIC SPEAKER'S LEASE LIST.
UH, BEFORE WE START, I'D LIKE TO ACKNOWLEDGE COUNCIL MEMBER ED POLLARD, VICE CHAIR FOR BFA FOR ANY OPENING COMMENTS.
AND COUNCIL MEMBER DAVID ROBINSON, FRESH FROM, UH, HOPE YOU REST AND RELAX FROM YOUR TRIP.
I WILL NEITHER CONFIRM NOR DENY.
AT THIS TIME, I'D LIKE TO WELCOME CONTROLLER CHRISTOPHER BROWN AND DIRECTOR WILL JONES TO PROVIDE THE MONTHLY FINANCIAL REPORT.
WE LOOKED, UH, LOOKED AT, GOT A LOT OF MONEY.
UH, MR. CHAIRMAN, COUNCIL MEMBERS AND STAFF, I'M PLEASED TO PRESENT THE MONTHLY FINANCIAL REPORT FOR THE PERIOD ENDING JANUARY 31ST, 2023.
THE CONTROLLER'S OFFICE IS PROJECTING AN ENDING FUND BALANCE OF 334.9 MILLION FOR FY 23.
THIS IS 43 MILLION LOWER THAN THE PROJECTION OF THE FINANCE DEPARTMENT, AND THAT'S DUE TO A 43.5 MILLION DIFFERENCE IN REVENUE PROJECTIONS.
BASED ON OUR CURRENT PROJECTION, THE FUND BALANCE WILL BE APPROXIMATELY 159.8 MILLION ABOVE THE CITY'S TARGET OF HOLDING 7.5% IN RESERVES.
OUR REVENUE PROJECTIONS INCREASE BY 56.3 MILLION FROM THE DECEMBER, 2022 REPORT, AND THAT WAS DUE TO THE FOLLOWING SALES TAX INCREASED BY 50 MILLION, AND THAT'S DUE TO HIGHER THAN ANTICIPATED, UH, SALES TAX RECEIPTS, MIXED BEVERAGE TAX INCREASED BY 1.3 MILLION AND THAT WAS ALSO DUE TO HIGHER RECEIPTS.
INCOME INCREASED BY 5 MILLION AND THAT WAS DUE TO HIGHER INTEREST RATES RECEIVED.
EXPENDITURE ESTIMATES INCREASED BY 5 MILLION COMPARED TO THE DECEMBER, 2022 REPORT, AND THAT WAS DUE TO AN INCREASE OF 5 MILLION IN GENERAL GOVERNMENT FOR THE LIMITED PURPOSE ANNEXATION PAYMENTS.
AND THAT WAS A RESULT OF HIGHER SALES TAX PROJECTIONS IN THE ENTERPRISE FUNDS.
UH, WE ARE PROJECTING NO CHANGES FOR THE ENTERPRISE AND SPECIAL REVENUE FUNDS.
AND IF YOU LOOK AT OUR COMMERCIAL PAPER AND BONDS, ALL OF OUR VARIABLE RATE DEBT IS WELL BELOW THE 20% THRESHOLD.
UH, THIS IS A SEVEN PLUS FIVE FINANCIAL REPORT FOR THE PERIOD ENDING JANUARY 31ST, 2023, FISCAL YEAR 2023, PROJECTIONS BASED ON SEVEN MONTHS OF ACTUAL RESULTS IN FIVE MONTHS OF PROJECTIONS IN THE GENERAL FUND.
OUR REVENUE PROJECTION IS 55.8 MILLION HIGHER THAN THE ADOPTED BUDGET, AND 61.8 MILLION HIGHER THAN LAST MONTH.
THE BEARINGS FROM THE PRIOR MONTH'S PROJECTIONS, PRIMARILY DUE TO A 54.8 MILLION INCREASE IN SALES TAX DUE TO HIGHER THAN ANTICIPATED RECEIPTS, 3.8 MILLION INCREASE IN INTEREST TO REFLECT HIGHER THAN ANTICIPATED CASH RECEIPTS AND 3.2 MILLION AND OTHER TAXES DUE TO HIGHER THAN ANTICIPATED MIXED BEVERAGE TAX.
UM, OUR EXPENDITURE PROJECTION IS 25.9 MILLION HIGHER THAN THE ADOPTED BUDGET AND 5 MILLION HIGHER THAN LAST MONTH.
AND THE VARIANCE FROM LAST MONTH'S PROJECTION IS DUE TO INCREASE, UH, IN THE GENERAL GOVERNMENT TO REFLECT PAYMENTS, UH, TO THE LPAS.
AS A RESULT OF HIGHER SALES TAX PROJECTION.
WE'RE CURRENTLY PROJECTING THE ENDING FUND BALANCE OF 378.4 MILLION, WHICH IS 56.8 MILLION HIGHER THAN PRIOR MONTH, AND 16.2% OF ESTIMATED EXPENDITURES, LESS DEBT SERVICE AND PAY AS YOU GO.
THE FUND BALANCE IS 203 MILLION ABOVE THE TARGET AT 7.5% OF EXPENDITURES, EXCLUDING DEBT SERVICE AND PAY AS YOU GO.
UM, AND WE'RE PROJECTING NO CHANGES ON OUR ENTERPRISE AND SPECIAL REVENUE FUNDS.
AND SO FINALLY, I'D LIKE TO ANNOUNCE THAT WE ARE NOW LIVE WITH THE THIRD AND FINAL PHASE OF THE OPEN FINANCE INITIATIVE, WHICH IS OPEN CHECKBOOK.
UH, OPEN CHECKBOOK PROVIDES HOUSTONIANS ACCESS TO DETAILED EXPENDITURE LEVEL DATA ON PAYMENTS TO VENDORS AND OTHER, UH, RECIPIENTS.
THIS COMPLETES THE OPEN FINANCE PROJECT WITH ALL THREE COMPONENTS ACTIVE,
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INCLUDING OPEN BUDGET, OPEN PAYROLL, AND NOW OPEN CHECKBOOK.UH, THIS INITIATIVE IS ANOTHER SIGNIFICANT STEP TOWARDS IMPROVING THE, UH, THE PUBLIC ENGAGEMENT AND PUBLIC AWARENESS OF THE CITY'S FINANCIAL ACTIVITIES.
I LIKE TO THANK MY TEAM FOR THEIR WORK ON THIS AS WELL AS DIRECTOR KENT AND THE HITS TEAM FOR THEIR EFFORTS IN THIS INITIATIVE.
UM, SO YOU CAN VISIT OPEN FINANCE DOT HOUSTON TX.GOV, UH, TO ACCESS SOCIETY.
YOU'LL SEE ALL THREE ARE ARE UP AND RUNNING.
SO, UM, UH, PROUD TO ANNOUNCE THAT IT'S FINALLY DONE WITH THE OPEN FINANCE.
SO OPEN CHECKBOOK IS THERE FOR YOU.
UM, SO THAT CON CONCLUDES MY REPORT AND THANK YOU.
AND I'D LIKE TO, UM, SAY KUDOS TO CONTROLLER CHRIS BROWN.
I REMEMBER WE WERE PREPARING FOR FISCAL YEAR 19, AND YOU AND I FIRST TALKED ABOUT IT AND LOOKED AT WHAT THEY WERE DOING IN LOS ANGELES AS FAR AS THE TRANSPARENCY TOOL, AND THEN PREPARED THE BUDGET AMENDMENT AND GOT PASSED.
AND LO AND BEHOLD, IT ONLY TOOK US, UH, FIVE YEARS TO GET HERE.
BUT, UH, WE FINALLY GOT HERE AND, UH, KUDOS TO YOU BECAUSE, UH, UH, IT WAS PART OF OUR PACKAGE THAT WE PRESENTED TO BUDGET AND FISCAL AFFAIRS AND THE, UM, BUDGET PROCESS.
AND, UH, I THINK IT'S GONNA BE A GREAT TOOL.
IT HAS BEEN WHEN YOU HAVE THE ABILITY TO LOOK AT TRANSPARENCY IN A DIFFERENT WAY.
UH, THANK YOU DIRECT TO DIRECTOR JONES FINANCE, THE HITS TEAM, THE ADMINISTRATION, COUNCIL MEMBERS.
THANK Y'ALL ALL FOR CONTINUING TO BE A ADVOCATING FOR THIS.
UH, I THINK THIS, UM, PUTS US NOW AS ONE OF THE TOP CITIES IN THE COUNTRY THAT ACTUALLY HAS, UH, THE FINANCIAL TRANSPARENCY.
AND WE WILL BE, UH, WORKING WITH THE ADMINISTRATION TO NOW SUBMIT, UH, UNDER THE STATE COMPTROLLER'S, UH, STARS PROGRAM TO GET THOSE TRANSPARENCY STARS.
'CAUSE UH, AS WE'VE SAID PREVIOUSLY, WE'RE ACTUALLY DOING ON DEBT SERVICE AND OTHER AREAS FOR THE CITY.
WE'RE ACTUALLY DOING ALL THE TRANSPARENCY ALREADY.
BUT UNTIL WE HAD THIS FIRST PIECE IN PLACE, WE CAN'T GET THAT FIRST STAR.
SO HOPEFULLY, UH, WE'LL BE ABLE TO REPORT, UH, IN THE NEXT, UH, COMING MONTHS THAT WE WERE ABLE TO, UH, SUBMIT AND GET APPROVED AND THEN, UH, BE INSTEAD OF THE LAGGARD IN TEXAS AND ACROSS THE NATION, ONE OF THE LEADERS IN TRANSPARENCY.
SO, AGAIN, UH, DID ALSO WANNA THANK, UH, MAYOR SYLVESTER TURNER ON MAKING GOOD ON HIS PROMISE THAT THIS WOULD, UH, EVENTUALLY, UH, BE DONE.
AND I DID HAVE CONVERSATION WITH LISA KEN ABOUT DOING A TUTORIAL, UH, FOR, UH, COUNCIL MEMBERS AND STAFF, AND WE WILL MAKE SURE THAT WE DO THAT.
AND, UH, THANK YOU, YOU AND YOUR STAFF AS WELL.
AND I WILL ADD THERE ARE, WHEN YOU GO TO THE WEBSITE, THERE'S, UH, INSTRUCTION VIDEO FOR THE FIRST TWO PHASES THAT WE'VE COMPLETED.
SO YOU CAN WATCH IT, IT'LL WALK YOU THROUGH THE WEBSITE, AND WE'LL DO THE SAME FOR THE, THE CHECKBOOK AS WELL.
VICE CHAIR, ED POLLARD, THANK YOU CHAIR.
AND THANK YOU BOTH FOR YOUR PRESENTATIONS, UH, WITH THE FINAL FOUR COMING IN ABOUT A MONTH OR SO.
UH, DO YOU ALL USE ANY PASS NUMBERS, UH, FOR WHEN THE, UH, TOURNAMENT WAS HERE BEFORE, UH, TO CALCULATE WITHIN YOUR PROJECTIONS GOING FORWARD? HOW DO YOU SEE THAT, UM, EVENT, UM, BRINGING IN REVENUE FOR THE CITY? YEAH, I THINK WE WOULD, WE WOULD DEFINITELY MODEL, UH, WE PREVIOUSLY HOSTED.
I THINK, UM, YOU KNOW, OVER TIME THOSE NUMBERS TEND TO INCREASE.
UH, WE'D HAVE TO GO BACK AND LOOK AT A, A WAY OF INCREASING, OBVIOUSLY WE ALL ALL ARE TALKING ABOUT INFLATION.
UH, FOR BETTER OR FOR WORSE, THAT WOULD INCREASE PROBABLY THE TOTAL, UH, NET RECEIVABLES THAT WE'RE GONNA GET FROM THIS.
BUT, UH, IT'S DEFINITELY GONNA BE A, A, A BONUS FOR HOUSTON.
UM, I CAN DO SOME WORK IN OUR OFFICE AND SEND YOU SOMETHING, UH, TO GIVE YOU AN IDEA OF HOW MUCH WE THINK IT COULD BE.
YEAH, AND I, I WOULD AGREE, UM, IT'S ALWAYS A CHALLENGE WHEN YOU TRY TO ISOLATE THOSE TYPE OF EVENTS.
'CAUSE YOU HAVE SO MANY OTHER FACTORS LIKE IN INFLATION, OTHER THINGS PLAYING A PART IN, IN THE SALES TAX.
BUT, UH, SO WHATEVER'S GONNA COME FROM THAT WILL BE, UH, YOU KNOW, BONUS.
UH, BUT IT, IT IS CHALLENGING TO SAY WE'RE GONNA GET THIS MUCH JUST FROM, YOU KNOW, THE FINAL FOUR.
UH, BUT YEAH, WE'LL, WE'LL TAKE A LOOK AT IT AS WELL TO KIND OF SEE HOW WE PERFORMED LAST TIME.
UM, LAST NIGHT I SAW CHRIS MASSEY, WHO'S, UH, IN THE SPORTS AUTHORITY AND TOLD ME ABOUT SOME OF THE WONDERFUL THINGS THAT'S HAPPENING ON SUNDAY, WHICH IS GENERALLY THE, THE DAY OF REST, NUMBER OF CONCERT CONCERTS.
AND THEN WE HAD THE HBCU ALL-STAR GAME AT TEXAS SOUTHERN.
'CAUSE THEY LOT HAVE A LOT OF REALLY COOL EVENTS AND GREAT ENTERTAINMENT.
IF YOU HAVEN'T SEEN THE LINEUP YET, COMES MEMBER SALLY ALCORN.
THANK YOU, CHAIR ON THE LIMITED PURPOSE ANNEXATION.
SO, SO ON OUR SALES TAX
REMIND ME IT'S A SPLIT PENNY TO THE, TO THE SPECIAL PURPOSE.
SO, SO IF OUR, IF OUR SALES TAX REVENUE GO UP, OBVIOUSLY OUR PAYMENT TO THOSE DIRECTLY, THAT HALF A PENNY GOES DIRECTLY TIED.
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FINANCE, I HAVE A QUESTION.UH, WILL THE CITIZENS BE ABLE TO, UH, SEE THE ENTERPRISE AND THE SPECIAL REVENUE FUNDS IN, IN THIS, UH, OPEN FINANCE? WE'LL BE ABLE TO SEE THAT.
YOU'LL BE ABLE TO SEE ALL THE FUNDS, INCLUDING THE GRANTS.
I WANT TO CONFIRM WITH THE CONTROLLER, THE GRANTS WILL BE THERE, THE ENTERPRISE FUNDS, SPECIAL REVENUE FUNDS WILL ALL BE AVAILABLE.
HOW ABOUT THE, THE TERMS? UM, YES, IT SHOULD INCLUDE ALL FUNDS, SO WE'LL BE ABLE TO SEE THOSE AS WELL.
I MEAN, IT DETERS I NEED TO, I HAVE TO PAUSE TO MAKE SURE THAT THE PAYMENTS THAT GO OUT, BUT IT INCLUDES ALL FUNDS.
WE DIDN'T EXCLUDE ANY FUNDS, PUT IT THAT WAY.
SO WILL THIS TUTORIAL BE AN ONLINE TUTORIAL OR WILL IT BE AN IN-HOUSE TUTORIAL? UM, WELL, SO WE, WE DID, UH, UH, OR ONLINE TUTORIAL FOR THE OPEN BUDGET.
AND THEN FOR THE OPEN PAYROLL, WE, WE, WE CREATED, UH, THE ONLINE TUTORIAL.
UM, I CAN GET WITH DIRECTOR HINT, UH, DIRECTOR KENT WITH HIS AND SEE, UH, WHEN WE'LL BE ABLE TO HAVE THE, THE ONLINE TUTORIAL.
BUT I MEAN, IF THERE'S DEMAND FOR SOME TYPE OF WALKTHROUGH, I'M SURE WE CAN ACCOMMODATE LIKE WE DID WITH OPEN BUDGET.
WELL, I, I REALLY APPRECIATE IT WHEN HITZ SENDS ME THE ONLINE TUTORIALS FOR, FOR, UH, CYBERSECURITY.
YOU KNOW, IT, IT'S A, IT MAKES IT, UH, UH, EASY TO UNDERSTAND.
YOU CAN GO BACK IF YOU DON'T PASS THE TEST, YOU CAN, YOU KEEP, KEEP DOING IT UNTIL YOU GOT IT.
AND I, I'D LIKE TO HAVE THAT IF, UH, IF YOU DON'T MIND HAVING A STAFF MEMBER SEND THAT TO, TO MY EMAIL ADDRESS.
YEAH, LIKE I SAID, FOR OPEN CHECKBOOK, IT'S NOT UP YET.
'CAUSE WE, WE JUST WENT LIVE WITH IT.
SO IT'LL PROBABLY BE, I, I DON'T KNOW.
IT'LL TAKE US SOME TIME TO, TO CREATE IT FOR OPEN CHECKBOOK, BUT IT IS AVAILABLE FOR THE FIRST TWO PHASES.
SO IT WILL BE THERE EVENTUALLY.
UH, CONTROLLER, UM, I, I NOTICED, UH, GO AHEAD, FINISH YOUR, I NOTICED THE, UH, INTEREST INCOME INCREASED BY $5 MILLION TO HIGHER INTEREST RATES, BUT THIS IS REALLY A DOUBLE-EDGED SWORD, AND THAT WE'RE ALSO PAYING HIGH, HIGHER, UH, INTEREST RATES.
UH, THIS IS FOR OUR, OUR INVESTMENT SIDE.
SO WE'RE GETTING, UH, SLIGHTLY HIGHER, BUT, BUT ON THE DEBT SIDE, UH, WE'RE PAYING A HIGHER RATE.
WHAT'S THE DOLLAR AMOUNT? WELL, I, I WILL SAY THAT ON THE DEBT SIDE, BECAUSE OF THE, YOU KNOW, LARGER AMOUNT OF DOLLARS, IT'S, IT'S GONNA BE MORE OF A HIT, UH, FOR US PAYING INCREASED RATES ON OUR, OUR BOND ISSUANCES.
SO, UH, I CAN GET YOU SOME EXACT NUMBERS ON THAT'S OKAY.
BUT IT IS A DOUBLE EDGED SHIRT.
YOU'RE THE ONLY ONE IN THE QUEUE.
UH, THE, THE STATE, THE STATE, WOULD YOU PLEASE EXPLAIN THIS TO, TO THE, UH, ESPECIALLY TO THE LISTENING AUDIENCE, SOMEBODY ASKED ME TO ASK YOU EXPEND THE, THE NEXT SENTENCE SAYS, EXPENDITURES INCREASED BY 5 MILLION COMPARED TO THE DECEMBER, UH, 2022 REPORT DUE TO AN INCREASE OF 5 MILLION IN THE GENERAL GOVERNMENT FOR THE LIMITED PURPOSE ANNEXATION PAYMENTS A RESULT OF HIGHER SALES TAX, UH, PROJECTION.
CAN, CAN YOU EXPLAIN, TELL 'EM WHAT THAT'S ABOUT? I BELIEVE IT'S, IT'S IN YOUR REPORT CONTROL GRANT.
UH, WE, WE JUST TALKED ABOUT THAT.
COUNCILMAN ALCO ASKED THAT SIMILAR QUESTION.
SO A PORTION OF THAT SALES TAX, UH, EIGHT AND A QUARTER, AS WE SAID, SIX, UH, AND A QUARTER GOES TO THE STATE, THE OTHER 2% IS SPLIT, UH, LOCALLY.
A PORTION OF THAT GOES TO THE LIMITED PURPOSE ANNEXATION.
SO WHEN THE SALES TAX INCOME INCREASES, OUR CORRESPONDING PAYMENT OUT TO THE LPAS INCREASES.
SO, UH, AGAIN, ANOTHER DOUBLE-EDGED SWORD.
WE'RE GETTING MORE MONEY IN SALES TAX AS EVIDENCED BY MY REPORT, UH, TODAY.
BUT WE'RE ALSO HAVING TO PAY OUT A LITTLE BIT MORE TO THE LPAS FOR, UH, OUR CORRESPONDING SHARE.
BUT, BUT WE DO NOT PROVIDE POLICE OUR FIRE EMS TO THE, UH, TO, TO THE LIMITED PURPOSE ANNEXATION AREAS.
DO WE, I I, I THINK SOME OF THAT, NO, WE DON'T, BUT THERE ARE OBVIOUSLY INFRASTRUCTURE PIECES THAT WE DO PROVIDE.
SO I'M SURE WE WOULD GO OUT THERE IF WE GOT A, IF THE CHIEF GOT A CALL FOR A FIRE OUT THERE, THOUGH, TO BACK IT UP.
AND NOAH, NO OTHER COUNCIL MEMBERS IN CUBE.
MY LAST COMMENTS WILL BE, UH, WITH A VERY SUBSTANTIAL, UH, AMOUNT OF MONEY ABOVE THE 7.5 REQUIRED.
UH, WHAT A GREAT TIME TO LOOK AT AN OPE TRUST ACCOUNT, RIGHT.
AND WE'LL BE, UM, I WILL SUBMIT THAT AGAIN FOR PROBABLY THE 10TH YEAR IN A ROW.
SO HOPEFULLY WE'LL HAVE THE OPPORTUNITY TO ACTUALLY FUND IT FOR THE FIRST TIME.
IF I MAY JUST ADD TO THOSE COMMENTS, YOU KNOW, BY SETTING UP THAT OPE TRUST, WE'RE ON A PAY GO RIGHT NOW.
SO WHEN WE, IN OUR, UH, ANNUAL AUDIT AND WHEN THE AUDITORS COME IN, THEY LOOK AT WHAT ARE WE DISCOUNTING THAT LIABILITY BACK AT? AND IT'S BASICALLY AT, UM, THE, UH, GENERAL, UH, RATE, LIKE A 30 YEAR BOND RATE.
UM, BUT IF WE SET UP THE OPEP TRUST, WE ACTUALLY CAN DISCOUNT THAT AT AN INVESTMENT RATE, SIMILAR TO WHAT WE DO WITH THE PENSIONS.
UM, NOT ONLY THAT, WE CAN EARN INCOME OFF OF THOSE INVESTMENTS TO HELP PAY FOR FUTURE LIABILITIES.
UM, SO BY DOING THAT, AND, AND NOW IS A GREAT TIME BECAUSE WE DO HAVE A
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LOT OF, UH, FUNDS, UH, AT THE MOMENT, WE CAN REDUCE A LIABILITY IN THE OPEP BY HUNDREDS OF MILLIONS OF DOLLARS.SO, YOU KNOW, THIS IS KIND OF ONE OF THE THEMES I'VE BEEN SAYING IS WE SHOULD BE USING THIS SURPLUS OF WHETHER IT'S, UH, FEDERAL MONEY OR INCREASE IN SALES TAX AND PROPERTY TAX MONEY TO REDUCE LONG-TERM LIABILITIES INSTEAD OF ADD TO 'EM.
AND THANK YOU FOR YOUR COMMENTS.
AND I'M SURE WE'LL HAVE, UH, COUNCIL MEMBER SALLY AORN SUPPORT ON THAT AS WELL.
COUNCIL MEMBER MICHAEL KUBOSH CONTROLLER.
I'D LIKE TO JUST REMIND YOU THAT YOU SAID YOU'RE JUST GONNA GIVE US SOME IDEAS OF, OF HOW MUCH MORE MONEY YOU, YOU NEED IN YOUR BUDGET.
'CAUSE THE BUDGET PROCESS IS COMING UP.
YEAH, I MEAN, WE TALKED ABOUT IT, I THINK AT THE LAST MEETING.
UH, NO, I'M NOT, IT'S NOT GETTING COMPETITIVE.
IT'S GETTING MORE COMPETITIVE TO HIRE AUDITORS.
I KNOW WE HAD AN, A COUPLE OFFERS OUT RECENTLY AND, AND PEOPLE ACTUALLY ENDED UP TAKING OTHER, UH, OFFERS THAT WE WERE TRYING TO GET MORE AUDITORS IN.
SO I, I WOULD STICK BY THE NUMBER OF ABOUT A HUNDRED THOUSAND, UH, PER AUDITOR.
SO FOR US TO CATCH UP WITH, UH, DALLAS, YOU KNOW, WE'D LOVE TO ADD 10 MORE AUDITORS.
UM, THAT TOTAL COST WOULD BE ABOUT A MILLION DOLLARS A YEAR.
UM, NOW IF THE WAGE INFLATION CONTINUES, UH, IT COULD BE A LITTLE BIT MORE, BUT I THINK THAT WOULD BE A, A HEALTHY NUMBER.
AND I THINK, AGAIN, UM, LOOKING FROM THE BUSINESS LENS AS A RETURN ON INVESTMENT, YOU KNOW, WE'VE, UH, SAVED, UH, OVER $11 MILLION IN AUDITS.
UH, DURING THE TIME I'VE BEEN CONTROLLER.
UH, OUR AUDIT DIVISION BUDGET IS A, A FRACTION OF THAT.
SO, UM, IF WE WERE TO ADD THAT MILLION DOLLARS A YEAR IN COST, UH, I THINK WE COULD AUDIT MORE PROGRAMS, FIND MORE SAVINGS, AND THERE WOULD BE A RETURN ON INVESTMENT THAT WOULD, UH, BE SOMETHING THAT TAXPAYERS WOULD SAY, THIS MAKES SENSE.
WHEN YOU DID THE AUDIT REPORT OF THE PUBLIC WORKS AND THE PERMITTING DEPARTMENT, YOU MADE SOME RECOMMENDATIONS.
DO YOU KNOW IF THOSE RECOMMENDATIONS THAT YOUR DEPARTMENT MADE HAVE BEEN IMPLEMENTED? I DON'T THINK THEY'VE BEEN IMPLEMENTED YET.
I THINK DEFINITELY WE'VE TALKED WITH THE DEPARTMENT, THEY'VE TAKEN NOTICE OF THESE.
UH, UNFORTUNATELY, A LOT OF THE RECOMMENDATIONS THAT WE MAKE, IT TAKES MONEY TO IMPLEMENT.
UH, UH, SO IT'S AN ADDITIONAL BUDGET STRAIN.
UH, A A LOT OF THEM ARE COST SAVINGS, UM, BUT SOME OF THEM ARE, UM, YOU KNOW, NOT, UH, YOU KNOW, THEY, THEY ADD ADDITIONAL COSTS.
SO, UM, YOU KNOW, WE'VE BEEN WORKING NOW THROUGH, UH, AND I WANNA THANK COURTNEY SMITH AND HER TEAM IN AUDIT, UH, GOING BACK AND LOOKING AT A LOT OF THESE, UH, PAST AUDITS THAT WE'VE DONE AND, UH, TOUCHING BASE WITH THE DEPARTMENTS TO JUST GET AN IDEA, UM, OF HOW MANY OF THESE ITEMS HAVE BEEN IMPLEMENTED.
AND I KNOW, UH, DIRECTOR JONES HAS SAID THAT HE'S, UH, YOU KNOW, WILLING TO WORK ON US, UH, WORK ON THESE WITH US GOING FORWARD.
BUT, UH, I THINK THAT THAT IS ONE THAT WE WILL HAVE TO CONTINUE TO DO SOME WORK ON.
AND I THINK, UH, BASED ON, YOU KNOW, MY OFFICE GETS CALLS ABOUT PERMITTING.
PEOPLE ARE HAVING A REALLY TOUGH TIME, UH, GETTING PROJECTS THROUGH THE CITY, UH, AGAIN, AS THE CONTROLLER, UH, THAT'S ONE AREA I THINK WE SHOULD FOCUS ON BECAUSE THESE ARE PEOPLE THAT ARE TRYING TO PUT DOLLARS, UH, INTO OUR CITY AS CAPITAL INVESTMENT.
AND, UH, IT'S INCREASINGLY DIFFICULT FOR THEM TO GET THE PERMIT TO BUILD THE NEW FACILITY OR EVEN A, YOU KNOW, REBUILDING A HOME OR, YOU KNOW, ALL THESE DIFFERENT THINGS THAT ADD TO OUR TAX BASE.
SO I, I, I THINK IT'S A GOOD RETURN ON INVESTMENT.
WE'LL WORK WITH, UH, DIRECTOR JONES AND HIS TEAM AND THE PUBLIC WORKS DEPARTMENT AND HOPEFULLY GET THOSE ITEMS IMPLEMENTED.
'CAUSE I THINK IT'S IMPORTANT.
I'LL BE ASKING YOU THIS EVERY MONTH UNTIL THE BUDGET PROCESS IS OVER.
YOU'RE NOT GONNA ASK ME WHAT I NEED FROM MY DEPARTMENT.
JUST, JUST LEAVE ME OUT THERE.
I SAID YOU'RE NOT GONNA ASK ME WHAT I NEED FROM MY DEPARTMENT TO
JUST DOVETAILING ON THAT A LITTLE BIT.
IN THE MONTH OF APRIL, WE'LL HAVE THE COMPENSATION STUDY THAT WILL COME TO BFA.
AND I THINK THAT WAS COUNCIL MEMBER SALLY ALCORN'S AMENDMENT TO THE LAST BUDGET PROCESS.
SO WE WILL TAKE THAT COMPENSATION STUDY UP IN APRIL TO SEE EXACTLY WHERE WE ARE WITH IN THE DISPARAGING IN THAT WE'RE SEEING IN PAY ACROSS THE WHOLE CITY OF HOUSTON.
THERE ARE NO OTHER COUNCIL MEMBERS IN QUEUE.
APPRECIATE YOU AND YOUR OFFICES.
NEXT WE'LL MOVE TO THE HOUSTON PUBLIC WORKS PRESENTATION ON THE DRAINAGE IMPACT FEE.
WELCOME TO MR. SAMIR SOLANKI AND DAVID WARDLOW.
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GO AHEAD.I'M THE CHIEF FINANCIAL OFFICER FOR HOUSTON PUBLIC WORKS, AND I WILL LET DAVID INTRODUCE HIMSELF.
DAVID WARDLOW, ASSISTANT DIRECTOR WITH HOUSTON PUBLIC WORKS.
UH, WE ALSO JOINED BY OUR CONSULTANTS THAT HELPED US WITH THE DRAINAGE IMPACT FEE STUDY.
I'M STEVE GALLOWAY BACK THERE AS WELL, SO WELCOME TO THEM.
WE ALWAYS LIKE TO REMIND, UH, BEFORE EVERY PRESENTATION THAT WE START THAT THERE IS A PURPOSE, UH, FOR HOUSTON PUBLIC WORKS.
AND THAT IS TOGETHER WE CREATE A STRONG FOUNDATION FOR HOUSTON TO THRIVE.
AND THAT'S WHAT WE'VE BEEN FOCUSING ON OVER THE PAST FIVE YEARS, UH, CREATING A CULTURE OF COHESIVENESS AND OPENNESS.
AND WE DO THIS BY OUR FIVE TO THRIVE VALUES, WHICH ARE SHOWING RESPECT, TAKING OWNERSHIP, HAVING GOOD COMMUNICATION, INTEGRITY, AND TEAMWORK.
AND AS YOU CAN SEE, THIS IS AN OVERVIEW OF THE SERVICE LINES FOR HOUSTON PUBLIC WORKS FROM CAPITAL PROJECTS, CUSTOMER ACCOUNT SERVICES, THE PERMITTING CENTER, HOUSTON WATER AND TRANSPORTATION AND DRAINAGE OPERATIONS.
AND HERE'S A SNAPSHOT OF THE GOOD LOOKING PEOPLE IN HOUSTON PUBLIC WORKS.
MOVE ON TO THE NEXT SLIDE, PLEASE.
AND THIS IS ANOTHER SNAPSHOT OF THE PUBLIC INFRASTRUCTURE THAT HOUSTON PUBLIC WORKS IS IN CHARGE OF.
WANT YOU TO FOCUS YOUR ATTENTION IN ON THE STORMWATER DRAINAGE AS THIS IS WHAT WE'LL BE DISCUSSING TODAY.
SO HOW IS DEVELOPER DRAINAGE IMPACT VIEWED RELATED TO THE DRAINAGE UTILITY CHARGE ITSELF? WHILE THE DRAINAGE UTILITY CHARGE APPLIES TO ALL BENEFIT OR PROPERTY WITHIN THE CITY'S DRAINAGE SERVICE AREA, AND IS PAID ON A MONTHLY BASIS FOR THE COST OF PROVIDING THESE SERVICES, THE DEVELOPER DRAINAGE IMPACT FEE IS A ONE-TIME FEE PAID ONLY BY NEW DEVELOPMENT.
THAT RESULTS IN AN INCREASE TO THE AMOUNT OF IMPERVIOUS AREA, AND THAT SHARES IN THE COST OF CAPITAL IMPROVEMENTS THAT'S ATTRIBUTABLE TO THE NEW DEVELOPMENT.
SO THE QUESTION IS, WHY ARE WE UPDATING THE IMPACT FEE? WELL, THE CITY DRAINAGE IMPACT FEE WAS IMPLEMENTED LAST TIME BACK IN 2013, AND THE TEXAS LOCAL GOVERNMENT CODE 3 95 REQUIRES REGULAR UPDATES TO THE IMPACT FEE.
SO THAT'S WHAT WE'RE HERE TODAY.
AND AS I MENTIONED, THE LOCAL GOVERNMENT CODE 3 95 REQUIRES US TO UPDATE THESE, UH, CALCULATIONS BASED UPON WHAT THE LAND USE ASSUMPTIONS ARE GOING TO BE THAT ARE FORECASTED, UH, FOR INCREMENTAL NEW DEMAND OVER THE NEXT 10 YEARS.
AND THE CAPITAL CAUSE THAT'LL BE ASSOCIATED WITH PROVIDING THE SERVICES.
SO ESSENTIALLY RECOVERING COSTS INCURRED FOR THE EXPANSION OF THE INFRASTRUCTURE NETWORK NECESSARY TO SERVE THAT NEW DEVELOPMENT.
AND I'M GONNA HAND IT OVER TO DAVID WARDLOW TO TALK ABOUT SOME OF THE COMPLEXITIES AND THE DETAILS BEHIND THE CHINESE IMPACT FEE STUDY.
AND I WILL TAKE A POINT OF PRIVILEGE AGAIN TO THANK OUR CONSULTANT TEAM THAT WORKED WITH US ON THIS STUDY.
UH, WE, THE CITY CONTRACTED WITH NUGEN STRATEGIES AND SOLUTIONS LLC, UM, ABOUT TWO YEARS AGO ALMOST NOW.
UM, BUT THE LEAD FOR THIS PART OF THAT WORK, UH, IS THE KIMLEY HORN AND ASSOCIATES TEAM.
UH, SO STEVE GALLOWAY AND KATE NAR HERE WITH US TODAY.
IN CASE WE HAVE ANY TECHNICAL QUESTIONS THAT WE'RE NOT ABLE TO ADDRESS FOR YOU, WE'LL BE ABLE TO CONSULT WITH THEM AS WELL.
SO, UM, JUST THIS MAP, UH, IS SHOWING YOU KIND OF THE STRUCTURE BEHIND THE IMPACT FEE AND HOW IT'S ASSESSED.
UH, JUST A REMINDER THAT DRAINAGE IMPACT FEE IS ADMINISTERED ON A WATERSHED BASIS.
UH, FEES COLLECTED IN EACH WATERSHED SERVICE AREA MUST GO TOWARDS THE COST OF ELIGIBLE CAPITAL IMPROVEMENTS WITHIN THE SAME SERVICE AREA.
UM, AND FOR THIS STUDY, WE HAVE RECOMMENDED MINIMAL CHANGES TO THOSE BOUNDARIES, UH, MOSTLY DUE TO NEW DATA, UH, BETTER DATA BEING AVAILABLE SINCE THE INITIAL STUDY, UH, WHERE THEY WERE BASED ON THE, THE TROPICAL STORM ALLISON RECOVERY PROJECT, UH, DATA.
UM, THE OTHER SLIGHT ADJUSTMENT TO THESE BOUNDARIES IS WE CONSOLIDATED THE RESERVOIRS, UH, INTO THEIR RECEIVING CHANNEL, UH, WHICH IS THE BUFFALO BIO WHITE OAK, UH, BAYOU, UH, SERVICE AREA.
UM, SO TWO MAIN COMPONENTS FOR, UM, THE IMPACT FEE ARE THE LAND USE ASSUMPTIONS AND THEN THE CAPITAL IMPROVEMENTS THAT ARE PROPOSED, UH, TO SERVICE NEW DEVELOPMENT.
UM, IF YOU LOOK THROUGH THE REPORT, THEY KIND OF CATEGORIZE THESE AS SHOWN ON THE MAP AND INTO CATEGORIES THAT AREN'T EXACTLY AS STRAIGHTFORWARD AS YOU MIGHT LIKE.
UM, THE CONSTRUCTED PROJECTS AND ANY CURRENT ADOPTED CIP PLUS PROJECTS THAT WE'VE ALREADY PLANNED, BUT MAY NOT BE IN THE FIVE YEAR ADOPTED CIP THINGS THAT WE MIGHT LIST IN THAT DOCUMENT AS DEFERRED RIGHT NOW.
UH, THOSE ARE LISTED IN, IN THIS REPORT AS THOSE 2022 CIP PROJECTS.
ALSO WITHIN THE DRAINAGE IMPACT FEE IMPROVEMENT PLAN ARE UNCONSTRUCTED IMPROVEMENTS THAT WERE DETAILED IN THE CITY'S PREVIOUS COMPREHENSIVE DRAINAGE PLAN THAT WAS LAST UPDATED IN 2003, AS WELL AS ADDITIONAL
[00:25:01]
IMPROVEMENTS THAT WERE IDENTIFIED IN AREAS OF DEFICIENCY.UH, DUE TO STUDY WORK THAT'S OCCURRED SINCE, UH, THE 2012 TIME PERIOD.
WE'VE ALSO INCLUDED SOME REGIONAL PROJECTS WHERE THE INVESTMENT THAT THE CITY MAKES IS TO, UH, LET'S SAY HARRIS COUNTY FLOOD CONTROL DISTRICTS, UH, SYSTEM.
UH, BUT IT'S BEING DONE IN ORDER TO PROVIDE A DRAINAGE LEVEL OF SERVICE BENEFIT, UH, FOR THE CITY, PARTICULARLY WHERE THERE'S ADDITIONAL DEVELOPMENT.
SO THIS IS THE THREE KIND OF STEPS TO WALK YOU THROUGH THE STUDY AND, UM, HOW WE GET TO THE PROPOSED FEE.
UM, THE ENGINEER, UH, AS REQUIRED UNDER STATE LAW, REALLY GETS TO THE ALLOCATED COST OR THE ATTRIBUTAL COST OF CAPITAL IMPROVEMENTS OVER DEVELOPMENT THAT IS GONNA OCCUR IN THE NEXT 10 YEARS.
AND BY THAT WE USE, UM, A GROWTH FORECAST.
IN THIS CASE, WE RELY ON DATA FROM HGAC AND A HORIZON YEAR THAT GOES OUT TO 2040.
AND THE ENGINEER THEN KIND OF LOOKS AT WHAT DEVELOPMENT IS JUST GONNA COVER FOR THE NEXT 10 YEARS OF THAT.
SO IT'S REALLY THE PRO RATA SHARE RIGHT OF DEVELOPMENT IN THE NEXT 10 YEARS AND THE COST OF THE CAPITAL IMPROVEMENTS RELATED TO THAT.
SO IT'S NOT EVERYTHING WE MIGHT BUILD, IT'S JUST THE COST OF IMPROVEMENTS NECESSARY TO SERVE DEVELOPMENT IN THE NEXT 10 YEARS.
UH, STATE LAW PROVIDES FOR A REDUCTION OR A CREDIT, UH, TO REDUCE THAT, UH, FEE TO A MAXIMUM ACCESSIBLE IMPACT FEE.
IN THIS CASE, WE'RE CONTINUING TO USE THE SAFE HARBOR 50% REDUCTION AND LIKE WE DO WITH, UM, THE, UM, THE WATER AND SEWER, UH, IMPACT FEES.
AND THEN JUST A REMINDER, YOUR ACTION TO ADOPT A FEE JUST MUST BE BELOW THAT MAXIMUM ACCESSIBLE IMPACT FEE.
UH, YOU CAN'T EXCEED IT, BUT ANYTHING BELOW THAT IS, IS KOSHER.
THIS TABLE JUST WALKS YOU THROUGH THE WORK, UH, THAT THE ENGINEER WENT THROUGH, UH, FOR EACH SERVICE AREA TO GET TO, UH, THE MAXIMUM ACCESSIBLE IMPACT FEE OR THAT CEILING THAT WE CAN EXCEED.
UM, AND AGAIN, IT JUST KIND OF WALKS YOU THROUGH, UH, THE COST OF THE CAPITAL IMPROVEMENTS IN THE SECOND COLUMN, THE 50% REDUCTION, AND THEN THE NUMBER OF SERVICE UNITS IS DRIVEN, AGAIN BY THAT AMOUNT OF DEVELOPMENT ANTICIPATED OVER THE NEXT 10 YEARS.
SERVICE UNITS HERE FOR THE DRAINAGE IMPACT FEE ARE THE, UH, EACH UNIT IS 1000 SQUARE FEET OF ADDITIONAL IMPERVIOUS COVER.
UM, AND THAT, UH, YOU KNOW, DIVIDE THE MAXIMUM ACCESSIBLE FEE BY THE, UH, SERVICE UNITS GETS YOU TO THE MAXIMUM ACCESSIBLE IMPACT FEE BY SERVICE UNIT.
WHICH GETS US TO OUR PROPOSED, UH, IMPACT FEE THAT, UH, WE HAVE FOR YOUR CONSIDERATION.
UM, JUST A NOTE HERE, THIS IS A EQUIVALENT TO ABOUT 5.3% OF THE MAXIMUM ACCESSIBLE FEE.
AND WE ARE PROPOSING TO MAKE THIS FLAT ACROSS ALL WATERSHEDS.
THAT'LL EASE IN IMPLEMENTATION AND, UH, MAKE SURE THAT EVERYBODY UNDERSTANDS VERY CLEARLY WHAT THEY NEED TO PAY.
AND JUST A NOTE HERE, WE DID ADD THAT TO THE SLIDE.
UH, PROPOSED EFFECTIVE DATE WOULD BE JULY 1ST.
SO THIS FEE WILL BE IN EFFECT FOR A FISCAL YEAR 2024.
AND THEN, UH, BY THE CURRENT ORDINANCE, THERE WOULD BE AN INFLATION ADJUSTMENT THAT WOULD KICK IN BEGINNING IN JULY OF 2024.
UH, WE'RE HAPPY TO ASK, UH, ANSWER ANY QUESTIONS YOU ALL MIGHT HAVE.
COUNCIL MEMBER DAVID ROBINSON.
I GUESS JUST A PRELIMINARY QUESTION FOR YOU GUYS, UM, REGARDING THE FEES, THE, THE MAP AND THE GEOGRAPHY LESSON THAT YOU'RE GIVING US WITH THE, THE WATERSHEDS IS HELPFUL FOR JUST KIND OF UNDERSTANDING IN, IN THE CASE OF THE TWO.
IF YOU COULD GO TO SLIDE NINE, THAT WOULD HELP FOR MY REFERENCES.
UM, SO JUST TO GET WHAT WE'RE PAYING FOR OUT IN THE OPEN THERE ON THE SOUTH SIDE OF HOUSTON, WE'RE LOOKING AT, UH, BOTH THE CLEAR CREEK SERVICE AREA AND THEN THE CLEAR CREEK CREEK WATER AUTHORITY EXCLUDED FROM CLEAR CREEK SERVICE AREA.
IT SAYS IN THE NOTES ON THE, IN THE TABLE ON THE TOP RIGHT AND THE TOP LEFT THERE.
CAN YOU MAYBE DIFFERENTIATE WHAT THE DIFFERENCES ARE THERE AND WHY THAT IMPACT FEE MIGHT BE DIFFERENT? SURE.
SO, UM, BECAUSE THAT, UH, UH, THAT AREA HAS THEIR OWN UTILITY SERVICE, RIGHT? UH, FOR DRAINAGE SERVICES, THEY'RE NOT PAYING THE IMPACT FEE.
AND LIKEWISE, THEY'RE CREDITED.
THEY DON'T PAY THE DRAINAGE CHARGE EITHER, RIGHT? IT, IT OCCURRED IN, UH, ANNEXATION OF CLEAR LAKE IN 1977, I THINK.
AND SO JUST WANTING TO POINT THAT OUT AND THE, AND THE DIFFERENCES ACROSS THE CITY OF HOUSTON, UM, SO THAT CITIZENS UNDERSTAND THE, THE FAIRNESS AND THE, THE LACK OF COMPLETE PARODY ACROSS THE WATERSHEDS.
COUNCIL MEMBER SALLY ALCORN, THANK YOU, CHAIR.
I SEE ON THE LAST PAGE, THAT WASN'T PART OF YOUR PRESENTATION, BUT WE HAVE IT HERE, WHAT THE CURRENT FEES ARE BY WATERSHED.
AND, UH, I WAS GONNA ASK HOW MUCH HAS BEEN COLLECTED THROUGH DEVELOPER IMPACT FEES SINCE THE PROGRAM'S INCEPTION? SURE.
I JUST GOT THE, THE EMAIL TRANSMITTAL TO US TODAY, UM, THROUGH
[00:30:01]
I BELIEVE JANUARY OF THIS YEAR.WE'VE COLLECTED A LITTLE OVER $5 MILLION SINCE INCEPTION.
IT'S THROUGH OCTOBER, THROUGH OCTOBER OF 22.
AND THANK YOU FOR THE PRESENTATION, UM, FOR THE BUFFALO AND WHITE OAK SERVICE AREAS.
CAN YOU TALK A LITTLE BIT MORE ABOUT WHY THAT WAS COMBINED? SURE.
UM, SO THE FIRST, UM, KIND OF KEY REASON, UM, IS THE, UM, FOR EASE OF ADMINISTRATION, RIGHT? JUST TO MAKE SURE WE HAVE EVERYTHING THAT'S FEEDING INTO THE RECEIVING CHANNELS AND THAT DEVELOPMENT UPSTREAM COULD POTENTIALLY IMPACT THOSE, UH, AREAS DOWNSTREAM.
JUST TREATING IT ALL UNDER ONE COMBINED SERVICE AREA JUST MADE LOGICAL SENSE AS THE PRIMARY REASON FOR, FOR THE COMBINATION THERE.
IF IT WASN'T COMBINED, WHAT DO YOU THINK THAT IT WOULD'VE AFFECTED THE COST AT ALL? IT COULD.
UM, SO THE SERVICE AREA AND THE, THE FEES ARE DRIVEN BY THE CAPITAL PROJECTS THAT ARE PROPOSED FOR THOSE AREAS.
UM, SO IT REALLY DEPENDS ON THE CAPITAL PROJECTS THAT ARE IN THOSE AREAS, UM, AS PART OF THE FEE.
SO YEAH, IT PROBABLY WOULD BE DIFFERENT.
SO AGAIN, SO WHEN WE WALK THROUGH THE, CAN YOU GO UP TO THE SLIDE THAT SHOWS THE TABLE? THERE YOU GO.
SO WHAT WE WOULD SEE HERE WOULD BE A MAXIMUM ACCESSIBLE FEE THAT WOULD BE PROBABLY LESS THAN THE, UH, 3 96 13 THAT'S SHOWN.
UH, BUT AGAIN, WE'RE PROPOSING A FEE THAT IS SUBSTANTIALLY LESS THAN THAT AT THIS TIME.
DOES THAT HELP? YEAH, IT DOES.
AND I, I MIGHT MEET WITH YOU OFFLINE TO GET SOME MORE INFORMATION 'CAUSE THAT'S MY ENTIRE DISTRICT AND IT'S PROBABLY SOME OF THE MOST GROWTH IN THE ENTIRE CITY.
SO TO COMBINE IT, I JUST HAVE SOME MORE QUESTIONS, BUT THANK YOU.
COUNCIL MEMBER MICHAEL KOSH, THE, UH, PAGE SEVEN, IT SAYS PROPOSED DRAINAGE IMPACT FEE.
SO CURRENTLY, UH, WE'RE PROPOSING AN ADDITIONAL $25.
IS THAT MONTHLY OR NO? SO THE IMPACT FEE, AGAIN, IS PAID ONE TIME, UH, WHEN FOLKS ARE BASICALLY PAYING FOR THEIR, UH, BUILDING PERMITS.
AND IT'S FOR THE, JUST A ONE TIME FEE.
AND IT'S ONLY FOR THE INCREMENTAL, ADDITIONAL IMPERVIOUS COVER.
SO IF YOU HAD SOMETHING ON YOUR PROPERTY THAT YOU PURCHASED AND THERE WAS COVER THERE, YOU'RE CREDITED FOR THAT AMOUNT OF EXISTING IMPERVIOUS COVER, SOME ADDITIONAL, UM, UM, EXEMPTIONS AS WELL.
SO THERE'S AN EXEMPTION, JUST LIKE FOR THE WATER AND WASTEWATER IMPACT FEE.
THERE'S AN EXEMPTION FOR A SINGLE FAMILY, AFFORDABLE HOUSING, THINGS LIKE THAT.
BUT ALL NEW CONSTRUCTION WOULD PAY THE $25 FEE.
AGAIN, IT'S PER 1000 SQUARE FEET OF ADDITIONAL IMPERVIOUS COVER.
SO IF YOU COULD BRING UP THE NEXT SLIDE, ACTUALLY, BETSY, KEEP GOING.
AND THIS IS PROVIDED IN THE FAQ DOCUMENT AS WELL.
UM, JUST TO GIVE YOU AN IDEA, WE, WE GAVE SOME EXAMPLES.
UNFORTUNATELY, EACH, EACH APPLICATION IS GONNA BE DRIVEN BY THE SPECIFICS OF THAT PROPERTY, RIGHT? WAS THERE EXISTING IMPERVIOUS COVER THERE? IS IT ELIGIBLE FOR AN EXEMPTION? UM, BUT JUST TO GIVE YOU A FEEL FOR WHAT THIS FEE WOULD ACTUALLY MEAN FOR SOMEBODY BUILDING THEIR OWN HOME OR FOR A NEW DEVELOPMENT, THIS IS AN EXAMPLE CALCULATION OF ABOUT ROUGHLY KIND OF GENERAL SIZES, RIGHT? SO AS AN EXAMPLE, SINGLE FAMILY, A NEW DEVELOPMENT ON ABOUT A 3000 SQUARE FOOT LOT IN THE GENERAL COVERAGE THAT WE SEE FOR THAT WOULD BE 1.8 SERVICE UNITS AND THEY PAY $45.
UM, IF WE LOOKED AT A NEW MULTIFAMILY, UM, TO APARTMENT, UH, DEVELOPMENT, THAT WOULD PROBABLY BE A $4,000 FEE.
SO AGAIN, THIS IS RELATIVELY MODEST FEE, UM, THAT WE'RE TALKING ABOUT.
AND THE INDUSTRIAL DISTRIBUTION, IT, IT WOULD BE $43,750.
SO AGAIN, THAT'S, THAT'S FOR 1,750 SERVICE UNITS.
SO THAT'S, THAT'S A, UH, LIKE A, I FORGET THE NUMBER OF ACRES, BUT 60 ACRES OR SOMETHING LIKE THAT.
IT'S THAT, THAT'S NOT A SMALL SITE.
AND AGAIN, THAT, THAT EXAMPLE THERE WILL BE GREENFIELD WITHOUT ANY EXISTING IMPERVIOUS COVER.
SO IF THEY WENT INTO A SITE THAT ALREADY HAD COVER, THEY'D BE CREDITED FOR WHAT WAS ALREADY THERE.
I THINK YOU SAID THAT THIS WAS ABOUT 5% OF THE WHAT WE COULD OF THE MAXIMUM.
IS THAT COMMON IN OTHER CITIES? I MEAN, IS THIS, IS THAT, IS IT MARKED DOWN TO THAT? SO THERE, WHAT, HOW DO WE COMPARE TO OTHER DEVELOPER IMPACT FEES FOR DRAINAGE? SURE.
SO THERE ARE VERY, VERY FEW OTHER EXAMPLES.
IN FACT, I'M NOT SURE STEVE, IF WE'RE AWARE OF ANY OTHERS IN THE STATE THAT CHARGE THIS PARTICULAR PART OF AS AN IMPACT FEE.
UH, THERE ARE SOME THAT CHARGE A STREET IMPACT FEE, WHICH IS A VERY COMPLICATED CALCULATION.
UM, I WOULD SAY IT'S, THIS IS A VERY MODEST FEE COMPARED TO OTHERS CHARGING FOR SIMILAR INFRASTRUCTURE.
[00:35:01]
THANK YOU.SO KNOW OUR COUNCIL MEMBERS IN QUEUE.
WE HAVE ONE PUBLIC SPEAKER, BUT JUST A LAST QUESTION SORT OF OUTSIDE TO THIS.
A LOT OF DISCUSSIONS ARE WRAPPED AROUND BIKE TRAILS, CONSTRUCTION OF BIKE TRAILS, BIKE PATHS, ESPECIALLY IN DISTRICT D, BLOT STREET, ET CETERA.
WHO PAYS FOR THAT AS FAR AS THE FEE WHEN WE REPLACE, UH, GRASS WITH IMPERVIOUS COVER? THAT'S A GOOD QUESTION AND I'M NOT SURE THAT I ACTUALLY KNOW THE ANSWER TO THAT.
'CAUSE THE AREA I REPRESENT, WE HAVE BIKE TRAILS ALL THROUGHOUT.
WE GET CHARGED THE DRAINAGE FEE.
SO I WANNA MAKE SURE THERE'S SOME CONSISTENCY AS TO WHAT WE, UH, WE ARE INCORPORATING, BUT WE'LL, WE'LL FOLLOW UP WITH THE ACCOUNT.
WE HAVE ONE PUBLIC SPEAKER THAT WOULD BE MR. DOMINIC MAZAR.
MY NAME IS DOMINIC MAZA AND I AM HERE IN COUNCIL CHAMBERS AND I'M STARTING NOW.
UH, ONE COUPLE OF THINGS I WANNA COMMENT ABOUT THE BUDGET.
NUMBER ONE, UH, SALLY, YOU MENTIONED THE, UM, GENERAL MOBILITY MONIES FROM METRO.
IT'S AT ONE QUARTER OF A CENT AND A HALF.
AND WITH THAT, UH, I WANNA TALK ABOUT A COUPLE THINGS, PARTICULARLY AGAIN WITH, WE HAD A CONVERSATION LAST WEEK CONCERNING, UM, EQUITY AND, AND TRANSPORTATION WITH, UH, LINK HOUSTON.
AND I THINK PART OF THE METRO, PART OF THE THING WITH THE, UM, RENEW HOUSTON PROJECT WAS TO USE METRO MONEY FOR THAT.
I CAN SEE THAT ON ONE CONDITION, THAT THE MONIES FROM METRO THAT TO HELP THE CITY HAVE TO HAVE A TRANSIT HOOK.
IN OTHER WORDS, REPAIR A STREET THAT IS A TRANSIT ROUTE, UH, ACCESS TO A PARK AND RISE, REDUCE FLOODING OF A STREET THAT FLOODS ALL THE TIME.
IF A STREETS FLOOD, A BUS CAN'T GET THROUGH, OR BRT OR RAIL LINE.
SO I THINK THAT NEEDS TO BE DONE.
AND MY THING IS, AND I THINK I TALKED TO YOU, UH, SENATOR LAST WEEK, AND MIKE, YOU BROUGHT IT UP AND I, I AGREE WITH YOU.
DETERRED ARE TAKING UP TO 25% OF THE ADV VALOREM TAXES OF THE CITY.
I THINK THAT, I THINK THEY NEEDS, AND WE, AND I'LL USE UPTOWN, UPTOWN HAS A BEAUTIFUL BRT THING, UH, GOING UP AND DOWN POST OAK.
BUT THE PEOPLE, PEOPLE IN THE GULFTON AREA WHO ACTUALLY NEED TRANSIT, WHO RIDE TRANSIT ALL THE TIME, DON'T.
AND THERE'S NO HARDLY ANY, I DON'T THINK THE, THE MONEY WE'RE GETTING THAT WE PUT INTO THE BRT ON POST OAK IS WORTH IT.
BUT THE PEOPLE WHO LIVE IN GULFTON NEED TRA.
I'VE BEEN OUT THERE IN THE PAST MONTH.
SO I THINK, AND I'M SURPRISED THAT THE CITY HAS NOT BEEN SUED ON A TITLE SIX VIOLATION.
IS THAT I YOU ANSWER FOR NOTES? GO AHEAD.
WELL LET, WE'LL GIVE YOU SOME LEEWAY.
BEFORE WE COUNCIL, I, I'M GONNA MAKE ONE COMMENT.
I'M SURPRISED THE CITY HAS NOT BEEN SUED ON A TITLE SIX VIOLATION BECAUSE I DON'T THINK THERE'S BEEN ANYTHING DONE WHEN THESE CHURCH WERE, WERE PRODUCED OR PUT INTO BEING CONCERNING SOCIAL JUSTICE.
AND WITH THAT, I, I WILL SEND IT BACK TO, TO THE HORSESHOE.
THIRD REFORM IS SOMETHING I'M LOOKING FOR FOR CANDIDATES RUNNING FOR THE HORSESHOE.
COUNCIL MEMBER DAVID ROBINSON.
I JUST WANTED TO APPRECIATE DOMINIC, YOUR, UH, DEDICATED SERVICE AND, UH, THE FACT THAT YOU'RE COMING TO THE BFA COMMITTEE.
I JUST WANNA SAY I'M NOT JEALOUS.
'CAUSE I KNOW YOU COME TO TTI AND TPC ALL THE TIME.
I WANT TO THANK YOU FOR YOUR, UH, DILIGENCE AND FOR THE FACT THAT YOU ARE CLEARLY PAYING ATTENTION.
DOMINIC, TELL US, UH, TELL THE COUNCIL HOW DID YOU GET HERE TODAY? OH, THANK YOU.
I GOT ON THE NA 96 FROM MY HOUSE, BEAR PARKER NORTHLINE BACKTRACKED TO NORTH SHEPHERD PARK AND RIDE AND TOOK THE 40 IN FROM THERE AND STOPPED THAT RIGHT OUT HERE BY THE LIBRARY.
AND AGAIN, THE TRAFFIC ALONG HEIGHTS BOULEVARD NOW IS GETTING SO BAD.
THIS IS WHAT I'M TALKING ABOUT.
THIS IS WHERE MOBILITY MONEY SHOULD BE PLACED, WHERE THERE'S A TRANSIT HOOK.
THE OTHER THING THAT THE TRANSIT HOOK IS, I DO AGREE THAT LETTING PEOPLE RIDE METRO TO JURY DUTY
[00:40:01]
COUNTS.I JUST WANT THE, UH, EVERYONE TO KNOW THAT HE RIDES METRO.
VICE MAYOR, UH, VICE CHAIR ED POLLARD.
THANK YOU DOMINIC, FOR COMING FORWARD.
I KNOW YOU HAD MENTIONED, UH, GOLFING AND THE NEED FOR CONNECTIVITY, ESPECIALLY THROUGH, UM, BUS RAPID TRANSIT OR SOME TYPE OF RAIL.
I CAN TELL YOU THAT, UM, THE GOLFING CORRIDOR PROJECT IS ONGOING RIGHT NOW.
THAT WAS A PART OF THE METRO NEXT BOND THAT WILL BE CONNECTING THE POST OAK LINE THROUGH GULFTON THROUGH SOUTHWEST HOUSTON.
UM, THOSE PLANS ARE ALREADY, UM, IN DESIGN PHASE RIGHT NOW, AND WE'RE GOING THROUGH PUBLIC COMMENT.
SO I, I CAN SEND THAT TO YOU SO YOU CAN BE A PART OF THAT PROCESS.
UM, BUT DEVELOPMENT IS SUPPOSED TO START IN 2023, ENGINEERING IN 2024, CONSTRUCTION IN 2025 AND OPENING IN 2027.
SO, UM, I'LL MAKE SURE THAT YOU HAVE, UM, THE INFORMATION SO THAT YOU CAN BE A PART OF THAT.
UH, WE DO NEED TO HAVE MORE CONNECTIVITY AND, UM, OPTIONS FOR TRANSIT FOR THOSE IN THE GULF AND SOUTHWEST AREA.
SO, UH, YOUR INPUT IS ALWAYS VALUABLE.
I'M ALREADY, I'VE ALREADY BEEN TO A PUBLIC HEARING.
MY THING IS THOUGH, AND I, I'LL SEND SOMETHING TO YOU.
METRO IS NOT REACHING OUT TO THE BUS CUSTOMERS ABOUT THE, ABOUT THE, BOTH THE UNIVERSITY LINE AND THE GULFTON EXTENSION.
NOW I DO AGREE THOUGH THE WAY THEY'RE DOING IT THROUGH BAILIN PARK, I THINK THAT IS A VERY MAJOR AREA THAT NEEDS TO BE COVERED.
BUT THAT'S MORE THAT, THAT DISCUSSION IS FOR THAT AREA.
BUT MY THING IS, YOU CAN SEE WHAT I'M TALKING ABOUT.
WHY IS UPTOWN GET A DRT WAY BEFORE BECAUSE THEY HAVE THE MONEY AND THESE PEOPLE DO NOT, OR, OR HAVE A SHERIFF THING, CAN'T A TURD, CAN'T A TURD SHARE IT WITH A POOR AREA? WELL, I, I BELIEVE A TUR, UH, HAS TO KEEP THEIR DOLLARS WITHIN THEIR, UM, CORRECT GEOGRAPHIC BOUNDARY LINES AND, UM, THAT'S A CONVERSATION FOR ANOTHER DAY.
BUT YES, BUT, BUT I WILL, UM, MAKE NOTE THAT METRO NEEDS TO, UM, CONTINUE TO REACH OUT TO THE ACTUAL BUS RIDERS AND OUR OFFICE WILL DO OUR PART IN ENSURING THAT, UM, WE TRY TO GET THAT INFORMATION OUT AS WELL.
BEFORE WE ADJOURN, PLEASE NOTE THAT THE NEXT REGULARLY SCHEDULED BUDGET AND FISCAL AFFAIRS COMMITTEE MEETING WILL BE ON TUESDAY, APRIL 4TH AT 10:00 AM.
IF THERE ARE NO OTHER COMMENTS OR QUESTIONED, THIS MEETING IS ADJOURNED.