[Press Conference: "Mayor's Proposed Fiscal Year 2024 Budget"]
[00:00:19]
ALL RIGHT, I THINK WE ARE, I THINK WE ARE READY TO GO.OH, GOOD AFTERNOON, I SHOULD SAY.
UH, OF COURSE, THIS IS, UH, THIS IS BUDGET DAY.
AND YOU KNOW, I AM, UM, PRESENTING THE EIGHTH AND FINAL BUDGET, UM, UH, FOR ME, UH, AS MAYOR OF CITY OF HOUSTON.
AND I TAKE IT ALL CITY COUNCIL MEMBERS HAVE GOTTEN A LITTLE NICE BOOK YET COVER TO COVER.
AND, UM, AND AS YOU CAN SEE ON, ON THE BOOK COVER IS THE AILEY MULTI-SERVICE CENTER, AND WE ARE VERY PROUD OF, AND THE SUNNYSIDE MULTI-SERVICE CENTER.
AND THEN, OF COURSE, OUR CADETS ARE ALSO PRESENT.
AND IF YOU HAVEN'T GOTTEN IT, OR YOU CAN, AND CERTAINLY IT IS, IT IS ONLINE.
UM, SO LET ME ACKNOWLEDGE ALL OF THE COUNCIL MEMBERS, UM, WHO ARE STANDING WITH ME.
UM, MAYOR PRO TEM, DAVE MARTIN, UH, COUNCIL MEMBER TIFFANY THOMAS, DISTRICT F UH, AT LARGE, COUNCIL MEMBER DAVID ROBINSON AND LARGE COUNCIL MEMBER SALLY ALCORN.
UH, COUNCIL MEMBER TASHA JACKSON, WHO I MAY MIGHT ADD, JUST GRADUATED FROM TEXAS SOUTHERN UNIVERSITY.
MAGNA C*M LAUDE, I MIGHT ADD, YOU KNOW, SO CONGRATULATIONS TO YOU.
CALLIS NARIS, THE COUNCIL MEMBER OF DISTRICT H.
AND THEN, UM, UM, WE HAVE, UH, ALSO THE, THE FINANCE CHAIR, UH, WILLIAM JONES, UH, WHO IS PRESENT, AND WHEREAS MELISSA DSKY, WHERE'S MELISSA OVER HERE, DIRECTOR.
MELISSA'S OVER THERE, MEMBERS OF FINANCE.
AND, UH, PRETTY MUCH MANY OF OUR DIRECTORS WHO ARE ALSO HERE.
YOU ARE A DIRECTOR FOR THE CITY OF HOUSTON.
UH, WHY DON'T YOU STAND, UH, SO WE CAN SEE IF YOU ARE A DIRECTOR.
SO WE PRETTY MUCH, WE PRETTY MUCH HAVE CLOSE TO A FULL, FULL HOUSE.
UM, LOOK, I'M HONORED TO PRESENT, UH, THIS BUDGET TO YOU.
UM, IT IS, IT IS THE BEST, UM, BUDGET THAT WE ARE PRESENTING, UM, IN EIGHT YEARS.
UM, IT'S THE FINAL ONE, UM, BUT IT IS ALSO THE BEST ONE.
UM, AND IN THE FINAL YEAR, UH, IT IS A BUDGET THAT IN MANY WAYS IS FUTURISTIC BECAUSE, UH, WE WILL BE HANDING OFF THE BUDGET, UM, TO THE CITY, TO THE NEXT MAYOR, UH, IN BETTER FINANCIAL SHAPE, UH, THAN WHAT I INHERITED WHEN I CAME IN ON JANUARY 1ST, 2016.
IN FACT, I BELIEVE IT'S ONE OF THE BETTER BUDGETS, UH, THAT HAVE BEEN PRESENTED BY THE CITY IN QUITE SOME TIME.
SO I'M, I'M VERY PLEASED WITH THAT.
UM, THE FISCAL YEAR 2024, PROPOSED BUDGET.
UH, I'M PLEASED TO PRESENT, UH, THIS BUDGET, THE PROPOSED BUDGET FOR ALL FUNDS TOTAL $6.2 BILLION, AN INCREASE OF $379.2 MILLION, OR 6.6% COMPARED TO THE FISCAL YEAR 2023, UH, CURRENT BUDGET OF 5.8 BILLION.
AND IF YOU DRILL DOWN INTO THAT, UH, THE ENTERPRISE FUND ACCOUNTS FOR 199 MILLION.
OF THAT 379 MILLION INCREASE, PRIMARILY IN OUR COMBINED UTILITY FUND DUE TO HIGHER O AND M COSTS.
THE PROPOSED GENERAL FUND, AND I KNOW IT'S GONNA BE A LOT OF NUMBERS, UH, SO I'M NOT GONNA JUST RUSH THROUGH VERY QUICKLY.
UH, THE PROPOSED GENERAL FUND BUDGET OF $2.9 BILLION REFLECT AND INCREASE IN SPENDING OF $120 MILLION OF 4.3% FROM THE FISCAL YEAR 2023 CURRENT BUDGET OF 2.8 BILLION.
THE INCREASE IN SPENDING IS PRIMARILY DRIVEN BY A FEW FACTORS.
UH, THE PAY INCREASES FOR ALL EMPLOYEE GROUPS, INCLUDING 3% FOR MUNICIPAL EMPLOYEES, 3% FOR POLICE, AND 6% FOR FIRE, TOTALING $51 MILLION.
[00:05:01]
THE 6% FIRE PAY RAISE INCLUDED IN THIS BUDGET REPRESENTS THE THIRD YEAR OF AN 18% CUMULATIVE PAY RAISE, VALUED AT $115 MILLION, UH, $47 MILLION INCREASE IN TRANSFERS TO THE D-D-S-R-F TO SUPPORT STREETS AND DRAINAGE PROJECTS IN THE CIP COUPLED WITH A DECREASE IN DEBT SERVICE OF $7 MILLION FOR A NET INCREASE OF $40 MILLION FOR PAY AS YOU GO AND DEBT.UH, LET ME JUST STOP AND, AND FOCUS ON THAT.
I KNOW THERE'S BEEN A LOT OF ISSUES CAN AND QUESTIONS RAISED ABOUT GIVING MORE TO OUR DRAINAGE MM-HMM
UM, THAT IS EXACTLY, THAT IS OCCURRING IN THIS BUDGET.
IN TERMS AS PAY AS YOU GO, UH, WHEN THINGS STARTED, UH, WE OWED ABOUT $2.4 BILLION IN PAY AS YOU GO.
AND THE DDR AND SREF, YOU KNOW WHAT I MEAN? UM, AT THIS POINT, WE HAVE PAID ABOUT $1.8 BILLION, UM, IN PAY AS YOU GO, 1.1 BILLION IN PRINCIPLE 649 MILLION IN INTEREST, WHICH MEANS, YEAH, WHICH MEANS WHAT IS LEFT TO BE PAID ON THE PAY AS YOU GO.
UH, WE OWE $637 MILLION, WHICH IS OWED 521 MILLION IN PRINCIPLE AND 116 MILLION IN INTEREST, WHICH REFLECTS THAT WE ARE PAYING THE DEBT DOWN AND AS WE PAY THE DEBT DOWN, THERE ARE MORE DOLLARS THAT WILL BE AVAILABLE TO GO TO THE PROJECTS THEMSELVES.
SO THAT IS WHAT IS OCCURRING, AND I'M PLEASED WITH THAT.
AND SO MORE MONEY IS BEING GIVEN TO D-D-S-R-A-F, AND THEN IN FACT, AND I THINK WE HAVE A SLIDE, AND IN FACT, IF NOT FOR SERIES 2017 PENSION OBLIGATION BONDS, THE GENERAL OBLIGATION OUTSTANDING DEBT OTHERWISE HAS DECREASED BY $717 MILLION SINCE FISCAL YEAR 2016.
IN ADDITION TO THE DRAIN OF THE GENERAL FUND, AN ADDITIONAL $11.3 MILLION, UH, TRANSFER IS BEING TRANSFERRED TO THE MAINTENANCE RENEWAL AND REPLACEMENT FUND TO ADDRESS DEFERRED MAINTENANCE FOR A TOTAL OF $42.9 MILLION.
AND THEN THE LAST ITEM THAT I WANNA HIGHLIGHT AS RELATES AS IT RELATES TO WHAT WE ARE SPENDING FROM THE GENERAL FUND, UH, THE OPEP, UH, I MEAN THE OTHER POST-EMPLOYMENT BENEFIT TRUST CONTRIBUTION.
NOW, UH, MAYOR PROM, UH, YOU HAVE BEEN STRONGLY SUPPORTING THE TRUST FUND, UH, IN ORDER TO FURTHER REDUCE THE OTHER POST-EMPLOYMENT, UH, BENEFIT LIABILITIES.
I KNOW COUNCILMAN MAY, YOU'VE ALSO WEIGHED IN ON THIS, IN THIS BUDGET SUBJECT TO YOU ALL'S APPROVAL, UH, THIS BUDGET WILL SET UP THAT TRUST FUND, AND WE ARE PUTTING $10 MILLION INTO THAT TRUST FUND.
UM, SO 8 MILLION OF THAT IS COMING FROM THE GENERAL FUND.
UH, 2 MILLION IS COMING FROM ENTERPRISE.
UH, SO THE 10 MILLION IS INCLUDING ALL FUNDS WITHOUT THE INFUSION OF OPERA FUNDS.
THE CITY, LIKE OTHER MUNICIPALITIES ACROSS THE NATION, WOULD HAVE BEEN FORCED TO IMPLEMENT SIGNIFICANT BUDGET CUTS AND LAYOFFS IN FISCAL YEAR 22 AND FISCAL YEAR 23 AS PERMITTED UNDER THE OPERA'S GUIDELINES, THE CITY USED OPERA FUNDING TO REPLACE HUNDREDS OF MILLIONS OF DOLLARS IN REVENUE THAT WOULD'VE BEEN USED FOR GOVERNMENT SERVICES TO MAINTAIN AND SUSTAIN CRITICAL CITY SERVICES.
THE FISCAL YEAR 2024 PROPOSED BUDGET UTILIZES $160 MILLION IN OFFER FUNDING TO FURTHER ADDRESS THE REDUCTION IN REVENUES DUE TO THE PUBLIC HEALTH EMERGENCY.
BUT EVEN IN THE ABSENCE OF THE OPERA FUNDING, AND I WANT TO UNDERSCORE THIS, EVEN IN THE ABSENCE OF THE OPERA FUNDING, THE CITY WOULD HAVE BEEN ABLE TO BALANCE THE FISCAL YEAR 2024 BUDGET BY DRAWING DOWN FROM THE FUND BALANCE.
WITH THE ASSISTANCE OF THE OPERA FUNDING, WE CONTINUE OUR COMPREHENSIVE APPROACH AGAINST VIOLENT CRIME WITH THE ONE SAFE HOUSTON CRIME REDUCTION INITIATIVE.
[00:10:01]
ADDITIONALLY, IN MARCH, 2023, I ANNOUNCED THE LAUNCH OF ONE CLEAN HOUSTON TO COMBAT ILLEGAL DUMPING.THIS INITIATIVE FOCUSES ON THREE KEY AREAS TO ADDRESS THE ISSUES.
ONE, RAPID CLEANUP, TWO VETERAN ENFORCEMENT, AND THREE, PREVENTION AND EDUCATION.
WHAT I WANNA UNDERSCORE WITH ONE SAFE HOUSTON AND ONE CLEAN HOUSTON IS THAT WE ARE UTILIZING THE UPPER FUNDING TO PAY OBLIGATIONS, UH, FOR THE NEXT YEAR AND THE YEAR AFTER.
SO THESE INITIATIVES LIKE CRISIS INTERVENTION AND THE CLEANUP INITIATIVES, OR TEARING DOWN ABANDONED BUILDINGS, THOSE INITIATIVES CAN CONTINUE, UM, BY THE NEXT MAYOR AND CITY COUNCIL FUNDED BY THOSE OPERA FUNDING.
IN TERMS OF LONG-TERM LIABILITIES, IN 2016 AND 2017, THE CREDIT RATING AGENCIES WARNED THE CITY, UH, WAS FACING THREE STRUCTURAL BARRIERS THAT THREATEN IS CREDIT RATING VIABILITY.
ONE, THE CREDIT RATINGS, UH, AGENCIES TALKED ABOUT OUR UNFUNDED PENSION LIABILITY.
TWO, IT TALKS ABOUT THE OTHER POST-EMPLOYMENT BENEFITS, AND THREE, THE REVENUE CAP.
OVER MY TWO TERMS. AS MAYOR, WE HAVE A TACKLE AND PUT INTO PLACE REFORMS THAT HAVE BEEN ADDRESSED, THAT HAVE ADDRESSED BOTH PENSIONS AND OTHER POST-EMPLOYMENT BENEFITS WITH REGARDS TO PENSION.
ON SLIDE THREE, THE PENSION COST AVOIDANCE.
IN 2017, WITH THE HELP OF VOTERS, MEMBERS OF CITY COUNCIL, WE ACHIEVE HISTORIC PENSION REFORM.
THE REFORM IMMEDIATELY REDUCED AN $8.2 BILLION LIABILITY AND PUT IN PLACE A RESPONSIBLE PLAN TO PAY OFF THE BALANCE OVER 30 YEARS.
THE PENSION LIABILITY NOW STANDS INSTEAD OF AT 8.2 BILLION.
IT NOW STANDS AT A LITTLE BELOW 2.2 BILLION, A REDUCTION OF $6 BILLION.
NOT ONLY WAS THE UNFUNDED LIABILITY TREMENDOUSLY REDUCED, BUT ALSO THE COST AVOIDANCE OF PROJECTED ANNUAL PENSION CONTRIBUTIONS WOULD, WHICH WOULD HAVE COME FROM THE, AN THE GENERAL FUND ON AN ANNUAL BASIS.
THE COST OF AVOIDANCE, UH, WHICH THE CITY HAS BEEN TA HAS HAD THE BENEFIT OF NOT HAVING TO PAY, UM, IS EQUALS TO $1.7 BILLION SINCE 2018.
THAT'S 1.7 BILLION THAT WE WOULD'VE HAD TO PAY OUT OF THE GENERAL FUND AND WOULD HAVE REALLY PUT US IN A BIND WITH OTHER CITY SERVICES.
IN SLIDE FOUR, UM, IT IS IMPORTANT TO NOTE THAT THE THREE PENSIONS PENSION SYSTEMS ARE HEALTHIER TODAY, MUNICIPAL POLICE AND FIRE BECAUSE OF THE PENSION REFORMS WE HAVE PUT IN PLACE.
AND I DO WANT TO TAKE A NOTE BECAUSE WHEN I CAME IN, OR JUST BEFORE I CAME IN IN 2016, WHAT PEOPLE SAID IS THAT SOME PEOPLE SAID IS THAT THEY NEEDED A BUSINESS PERSON TO HANDLE THE BUSINESS MATTERS, UH, AT CITY HALL INSTEAD OF A POLITICIAN LIKE ME.
THE REALITY IS, YOU GOT THE POLITICIAN AND THE BUSINESS PERSON ALL WRAPPED UP IN ONE.
THE OTHER STRUCTURAL BARRIER THAT THE, UM, CREDIT RATING AGENCIES OUTLINED IN JANUARY OF 2022, UH, THIS ADMINISTRATION INTRODUCED O THE OTHER POST-EMPLOYMENT BENEFIT REFORMS, UH, WITH THE SUPPORT OF THE CITY COUNCIL.
AND I WANT TO THANK YOU ALL, AND THE UNFUNDED, THE OTHER POST-EMPLOYMENT BENEFIT LIABILITY WAS, UM, $9.1 BILLION.
WELL, LET ME BACK UP WITHOUT ANY REFORMS. THE O OTHER POST-EMPLOYMENT BENEFITS WOULD'VE GONE UP TO $9.1 BILLION, ESTIMATED OVER 30 YEARS WITH THE REFORMS THAT WE HAVE PUT IN PLACE, THAT $9.1 BILLION HAS BEEN REDUCED TO 4.5 BILLION, A REDUCTION OF 4.6 BILLION IN THIS FISCAL YEAR 2024 PROPOSED BUDGET.
WITH THE SUPPORT OF COUNCIL, WE WILL ESTABLISH AN O UH, EP TRUST WITH A STARTING CONTRIBUTION OF $10 MILLION, WHICH
[00:15:01]
WILL ESCALATE OVER TIME THE CITY'S ONGOING CONTRIBUTION TO THE TRUST OR ESTIMATED TO FURTHER REDUCE THE LIABILITY DOWN TO 1.1 BILLION BY THE YEAR 2048, AN ADDITIONAL REDUCTION OF $3.4 BILLION.THE GOAL OF THE TRUST IS TO SAVE AND GROW THROUGH INVESTMENT EARNINGS FUNDS THAT WILL OFFSET PAY AS YOU GO COSTS IN THE FUTURE, WHILE SIMULTANEOUSLY REDUCING THE NET OPE LIABILITY ON THE FUND BALANCE.
THE PROPOSED BUDGET INCLUDES AN ENDING FUND BALANCE OF $401 MILLION, WHICH IS 16.6% OF EXPENDITURES, LESS PAY AS YOU PAID SERVICE AND PAY AS YOU GO WELL ABOVE THE MINIMUM OF 7.5% ESTABLISHED IN THE CITY'S FINANCIAL POLICIES.
THAT IS $220 MILLION ABOVE THE 7.5% OF EXPENDITURES, LESS DEBT SERVICE AND PAY AS YOU GO.
THIS REPRESENTS THE STRONGEST FUND BALANCE IN RECENT HISTORY FOR PROPOSED BUDGET.
WITH REGARDS TO THE BUDGET STABILIZATION FUND.
THIS BUDGET, THIS BUDGET FULLY FUNDS THE BUDGET STABILIZATION FUND REPRESENTING MORE THAN $20 MILLION.
AS WE HEAD INTO HURRICANE SEASON, HOUSTON IS BETTER PREPARED FINANCIALLY TODAY THAN WE HAVE BEEN OVER THE LAST EIGHT YEARS.
ADDITIONALLY, THIS BUDGET DOES NOT DRAW DOWN FROM THE FUND BALANCE, AND THIS BUDGET DOES NOT INCLUDE ANY ONE TIME LAND SALES OR DEFERRALS WITH REGARDS TO THE IMPACT OF THE PROPERTY TAX REVENUE CAP.
SLIDE SEVEN, THE FISCAL YEAR 2024 PROPOSED BUDGET IS BASED ON THE EXISTING PROPERTY TAX REVENUE CAP.
DEPENDING ON THE TAXABLE, ON THE TAXABLE VALUE, WE MAY HAVE TO ADJUST OUR TAX RATE TO COMPLY WITH A PROPERTY TAX REVENUE CAP.
A HIGHER TAXABLE VALUE MAY RESULT IN TAX RATE REDUCTIONS IN FISCAL YEAR 2024 ALONE.
THE FULL IMPACT OF THE CAP WILL RESULT IN A LOSS OF $347 MILLION.
SINCE HITTING THE CAP IN FISCAL YEAR 2015, THE FULL CUMULATIVE IMPACT OF THE CAP IS $1.8 BILLION.
I WANT YOU TO, I WANT THAT TO SINK IN.
SO WHEN WE ARE TALKING ABOUT GARBAGE SERVICE, UH, EVEN AS IT RELATES TO ILLEGAL DUMPING, DRAINAGE ISSUES AND OTHERS, UM, POLICE, FIRE, YOU NAME IT, WITH THE REVENUE CAP IN PLACE, UM, WE WILL CONTINUE TO HAVE TO REDUCE OUR TAX RATE LAST YEAR IN VIEW OF THE INCREASE IN PROPERTY VALUE AND TO PROVIDE RELIEF TO SENIORS, TO SENIOR CITIZENS AND THE DISABLED.
THE TAX EXEMPTIONS FOR OVER 65 AND DISABLED TAX EXEMPTIONS WERE INCREASED FROM $160,000 TO $260,000 AND REMAINS IN PLACE TODAY.
AND I WANT TO THANK YOU ALL THE MEMBERS OF CITY COUNCIL FOR APPROVING THAT THE CONSERVATIVE REVENUE BUDGETING SLIDE EIGHT SALES TAX BUDGET BUDGET VERSUS THE ACTUAL WHILE HAVING TO LIVE WITH, WITH THE LIMITATIONS OF THE REVENUE CAP, WHICH AS AN EDITORIAL NOTE, LET ME JUST ADD.
AS AN, AS YOUR OUTGOING MAYOR, UH, SOON TO BE YOUR REVENUE CAP HAS OUTLIVED ITS USEFULNESS.
AND SO FOR FUTURE VOTERS AND PEOPLE IN THE CITY AND FOR THE FUTURE OF THIS CITY, IN MY HUMBLE OPINION, THIS CAP SHOULD NOT REMAIN IN PLACE.
HAVING SAID THAT, UH, WE HAVE MANAGED TO CONTINUALLY PROPOSE BALANCE AND CONSERVATIVE BUDGETS, AND WE CONTINUALLY SEEK TO OUTPERFORM BUDGETED EXPECTATIONS ANNUALLY.
FOR EXAMPLE, ON SALES TAX, OUR FISCAL YEAR 2023 ESTIMATED COLLECTIONS EXCEEDED THE ADOPTED BUDGET BY $85 MILLION OR 10.6% THE FISCAL YEAR, 2024, PROPOSED BUDGET, AGAIN, IS CONSERVATIVE, WHERE WE ARE PROPOSING A 3% DECREASE
[00:20:01]
FROM FISCAL YEAR 2023.BUT EVEN WITH THESE CONSERVATIVE NUMBERS, OUR FUND BALANCE IS STRONG.
LET ME STOP EVEN BEFORE I GET TO THE END, UH, TO THANK, UH, WILL JONES AND HIS ENTIRE FINANCIAL TEAM.
QUITE FRANKLY, IF YOU ARE HERE AND YOU ARE IN FINANCE, JUST STAND UP WHEREVER YOU MAY BE IF YOU ARE IN FINANCE, MELISSA JAB, FINANCE, FINANCE.
THIS IS JUST, THIS IS JUST A SMALL, UH, REPRESENTATION OF THE FINANCIAL DEPARTMENT, BUT I BELIEVE WILL AND MELISSA, I BELIEVE THE TWO OF THEM HAVE BEEN WITH ME FOR THE PAST EIGHT YEARS, SINCE THE BEGINNING.
UH, THEY HAVE BEEN WITH ME SINCE THE BEGINNING, AND I WANT TO THANK THEM FOR THEIR STELLAR LEADERSHIP.
IN FACT, I DON'T THINK YOU WILL FIND A BETTER, UH, FINANCIAL TEAM, UM, THAN IS REPRESENTED AT THIS POINT IN TIME.
THEY HAVE BEEN WITH ME FROM THE BEGINNING, FROM DAY ONE, UH, AND IN EIGHT PROPOSED BUDGETS.
AND EVEN WHEN WE FACED $160 MILLION DEFICIT COMING IN, UH, UNDER THEIR STELLAR LEADERSHIP, WE HAVE BEEN ABLE TO PUT FORTH STELLAR BUDGETS.
NOT ONE TIME, UH, SINCE I HAVE BEEN MAYOR HAVE WE BEEN FORCED TO LAY OFF ONE SINGLE EMPLOYEE IN THE CITY OF FUTURE.
ON, ON PUBLIC SAFETY SLIDES NINE AND 10 ON HPD HIRING PER ADMINISTRATION, PUBLIC SAFETY REMAINS AT THE FOREFRONT FULLY.
WE HAVE FULLY FUNDED FIVE CADET CLASSES FOR POLICE AND FOUR FOR FIRES.
I KNOW, UH, CHIEF PENA IS, IS HERE, AND, UH, CHIEF MATT SLINKER IS HERE REPRESENTING POLICE.
I KNOW CHIEF NER IS IN DC WITH THE NATIONAL, UH, POLICE, UH, WEEK, UH, CURRENT POLICE COUNT IS 5,128 WITH FIVE CLASSES EXPECTED TO GRADUATE BY THE END OF JUNE, 2024.
BUT I DO WANT YOU TO FOCUS ON THE HIRING THAT WE HAVE DONE.
AND I SAY WE, 'CAUSE WE HAVE DONE IT TOGETHER OVER THE LAST, UH, EIGHT YEARS.
FOR THOSE WHO SAY, AND MAY COME UP TO YOU AND SAY, COUNCIL MEMBER THOMAS, WHY AREN'T YOU OUT HIRING MORE POLICE, HIRE MORE POLICE, HIRE MORE POLICE.
UH, LET ME JUST SAY, OVER THE LAST EIGHT YEARS, WE HAVE HIRED MORE POLICE.
THERE'S ONLY BEEN ONE MAYOR IN THE LAST 20 YEARS, NO, 33 DECADES YEARS.
WHEN WAS CATHERINE WHITMEYER MAYOR? NINE TWO, EARLY NINETIES.
THERE'S ONLY BEEN ONE MAYOR IN THE LAST, LET'S SAY 40 YEARS, WHO HAVE HIRED MORE POLICE THAN WE HAVE.
THAT MAYOR WAS CATHERINE J WHITMEYER.
AND IF YOU CAN RECALL, SHE SERVED FOR 10 YEARS.
THE SECOND MAYOR IN THE LAST 40 YEARS THAT HAVE HIRED MORE POLICE HAS BEEN THIS ONE.
AND SO IN LESS THAN EIGHT YEARS, WE HAVE HIRED ABOUT 2200.
AND I THINK KATHERINE J WHITMEYER IN 10 YEARS HIRED ABOUT 2,800, AS YOU CAN SEE.
THE PROBLEM HAS ALWAYS BEEN IS THAT WE HAVE A SIGNIFICANT PERCENTAGE OF POLICE OFFICERS WHO ARE ELIGIBLE TO RETIRE.
AND WHEN I CAME IN EIGHT YEARS AGO, WE HAD 38% OF THE ENTIRE POLICE FORCE THAT COULD RETIRE AT THAT POINT IN TIME.
WE ARE GRATEFUL TO OUR POLICE OFFICERS, MEN AND WOMEN WHO ARE ELIGIBLE TO RETIRE, WHO CHOSE NOT TO RETIRE WHEN THEY COULD HAVE.
AND NOW THROUGH THE HIRING PROCESS, WE'VE BEEN ABLE TO DROP THAT PERCENTAGE FROM 38% TO ABOUT 28%.
OKAY? AND AS THAT PERCENT GOES DOWN, THEN THE NUMBER OF POLICE OFFICERS ON OUR FORCE CAN GO UP.
BUT WE ARE GRATEFUL TO EACH AND EVERY, EVERY ONE OF THEM.
UM, AND THEN ON BUDGET, PROCESS AND TRANSPARENCY, THIS FISCAL 2024 PROPOSED BUDGET BEGINS TO TRANSITION TO AN OUTCOME BASED BUDGETING MODEL.
OBB AIMS TO TRANSFORM THE WAY CITY LEADERSHIP MAKES DECISIONS ON THE ALLOCATION OF FINANCIAL RESOURCES
[00:25:01]
BY FOCUSING ON THE EXPECTED RESULTS AND OUTCOMES OF CITY PROGRAMS AND SERVICES.IN MARCH, 2023, THE CITY OF HOUSTON FINALIZED IMPLEMENTATION OF THE OPEN FINANCE INITIATIVE TO PROVIDE MORE TRANSPARENCY ABOUT THE CITY'S FINANCES.
OPEN FINANCE ALLOWS CITY ADVOCATES TO STAY INFORMED AND GAIN ACCESS TO THE SAME INFORMATION STAKEHOLDERS AND GOVERNMENT LEADERS USE TO MAKE DECISIONS IN THE DAY-TO-DAY OPERATIONS OF LOCAL GOVERNMENT.
THIS INCLUDES PUBLISHING RELEVANT, ACCESSIBLE DATA SETS ABOUT THE CITY'S BUDGET, CHECKBOOK, AND PAYROLL.
IN CONCLUSION, UH, THE FISCAL YEAR 2024 PROPOSED BUDGET IS MY EIGHTH CONSECUTIVE BUDGET THAT IS BALANCED BEFORE PENSION REFORM.
THE CITY'S PROJECTED UNFUNDED LIABILITY WAS 8.2 BILLION.
WE HAVE WORKED TOGETHER HARD TO ADDRESS THE LIABILITY, AND TODAY WITH THE REFORMS WE HAVE CREATED, THE UNFUNDED LIABILITY HAS DROPPED TO 2.2 BILLION, WHICH IS A $6 BILLION REDUCTION.
WE HAVE ADDRESSED THE OEP LIABILITY WITH REFORMS INTRODUCED LAST YEAR, PROJECTED TO REDUCE THE CITY'S O PEP LIABILITY FROM 9.1 BILLION TO 4.5 BILLION.
AND IN THIS PROPOSED BUDGET, WE WILL ESTABLISH AN O PEP TRUST FUND THAT WILL FURTHER REDUCE THE LIABILITY DOWN TO 1.1 BILLION IN THE FUTURE.
WE HAVE AUTHORIZED SIGNIFICANT PAY RAISES TO THREE EMPLOYEE GROUPS, INCLUDING 6% FOR FIRE, 3% FOR POLICE, AND 3% FOR MUNICIPAL EMPLOYEES.
IN FISCAL YEAR 24, OUR FUND BALANCE IS STRONG WITH $220 MILLION ABOVE THE REQUIRED 7.5 OF EXPENDITURES, LESS DEBT SERVICE PAY AS YOU GO, AND THE BUDGET STABILIZATION FUND IS FULLY FUNDED, BUT EVEN IF YOU INCLUDE THE ENTIRE FUND BALANCE, IT IS ABOUT $401 MILLION.
AS WE LOOK AHEAD, STRONG FINANCIAL MANAGEMENT WILL NEED TO CONTINUE BY THE NEXT MAYOR AND CITY COUNCIL.
THE CITY OF HOUSTON OPERATES UNDER ONE OF THE COUNTRY'S MOSTLY RESTRICTED PROPERTY REVENUE CAPS, IN ADDITION TO COMPLYING WITH THE STATE OF TEXAS REVENUE CAP AND THE PRESSURES OF INFLATION.
DESPITE THOSE CHALLENGES, THE FINANCIAL HEALTH, HEALTH OF THE CITY IS MUCH STRONGER THAN IT EXISTED ON JANUARY 1ST, 2016.
FOR THOSE WHO HAVE BEEN NAYSAYERS WHO HAVE SAID THE SKY WAS GOING TO FALL EIGHT YEARS AGO, IT IS STILL UP IN THE SKY SEVEN YEARS AGO.
6, 5, 4, 3, AND TWO, AND ONE, THE SKY IS STILL THERE AND THE SUN IS STILL SHINING ON THE CITY OF HOUSTON.
ANY GAP THAT MAY EXIST, ANY GAP THAT MAY EXIST IN FISCAL YEAR 2025 CAN BE FULLY COVERED BY THE FUND BALANCE, PLACING THE CITY IN GOOD FISCAL POSITION TO ADDRESS FUTURE ECONOMIC ECONOMIC UNCERTAINTIES.
IF THE NEXT MAYOR GOVERNS WITH FISCAL FINANCIAL SOUND MANAGEMENT THAT WE CANNOT GUARD AGAINST THE CITY'S NEXT, THE CITY'S NET POSITION, WHICH IS A STRONG INDICATOR OF A GOVERNMENT'S FINANCIAL STANDING, WAS THE HIGHEST IN ALMOST 20 YEARS AT $5.9 BILLION AS OF THE END OF FISCAL YEAR 22, AN INCREASE OF $2.2 BILLION COMPARED TO FISCAL YEAR 2021.
THIS IS MY FINAL BUDGET, AND I AM PROUD TO SAY I LEAVE TO THE NEXT MAYOR A BUDGET THAT IS BETTER THAN IT HAS BEEN IN A LONG, LONG TIME.
BUT I OWE IT TO 16 PARTNERS THAT I'VE HAD, PLUS BECAUSE SOME COUNCIL MEMBERS WERE NOT HERE IN 2016, BUT TO THE MEMBERS OF CITY COUNCIL, UH, LET ME THANK YOU TO THE DIRECT DEPARTMENT DIRECTORS.
TO, UM, 22,000 EMPLOYEES WHO HAVE STAYED THE COURSE.
LET ME SAY THANK YOU, THANK YOU.
AND TO THE PEOPLE OF CITY OF HOUSTON, LET ME THANK YOU FOR, UH, TRUSTING ME, UH, TO GUIDE THIS CITY FINANCIALLY.
AND FOR THOSE WHO SAY, WELL, MAYOR, BUT FOR THE FEDERAL DOLLARS, WE WOULD NOT BE HERE.
WELL, THE FEDERAL DOLLARS WASN'T HERE IN 2016.
[00:30:02]
WE BALANCED THE BUDGET ANYWAY, AND THE FEDERAL DOLLARS WEREN'T HERE IN 2017 OR 2018, OR 2019 OR 2020, BUT WE BALANCED THE BUDGET ANYWAY.IT'S NOT THE FEDERAL DOLLARS THAT WILL SAVE YOU, IS GOOD SOUND FISCAL MANAGEMENT AND KNOWING YOUR JOB AND HOW TO GET IT DONE, BECAUSE ROUGH TIMES WILL ALWAYS COME.
BUT LET ME TELL YOU, WHEN YOU'VE GROWN UP AND YOU'VE BEEN READ WHEN YOU DIDN'T HAVE MUCH, THAT YOU HAD TO MAKE A DOLLAR STRETCH, BUT TO STILL COVER YOUR NEEDS MM-HMM
EVEN GOVERNMENT HAS TO RUN ON THOSE SOUND PRINCIPLES I BROUGHT TO CITY HALL HOME, WHAT MY MAMA AND DADDY TAUGHT ME, THEY FED NINE KIDS AND TOOK CARE OF US WELL, AND I BELIEVE TOGETHER WE HAVE DONE AN EXCELLENT JOB.
SO MEMBERS OF CITY COUNCIL, I PRESENT TO YOU THIS FISCAL 2024 BUDGET, OKAY? HOPEFULLY YOU WON'T AMEND IT TOO MUCH.
BUT, UH, LET ME, LET ME THANK YOU.
AND THEN AT THIS POINT, UH, AGAIN, I DO WANT, AGAIN, THANK FINANCE ENOUGH, WILL, I AM VERY INDEBTED TO YOU.
UM, THIS GUY KNOWS HIS STUFF, AND I WANT YOU TO KNOW I VERY MUCH APPRECIATE YOU, MELISSA.
WELL, YOU CAN STAND UP, MELISSA.
IN FACT, YOU NEED TO COME OVER HERE,
AND THE REASON WHY I SAY THAT WHEN I MEET WITH THEM THREE AND FOUR TIMES A WEEK, UH, THEY HAVE COME IN TOGETHER AND, UH, THEY HAVE DONE A INCREDIBLE, IN INCREDIBLE JOB IN SHEPHERDING THIS CITY THROUGH SOME TOUGH FINANCIAL TIMES.
YOU SEE ME? BUT I WANT TO GIVE THESE TWO AS THE LEADERS OF THE FINANCIAL DEPARTMENT, THE CREDIT THEY RIGHTFULLY DESERVE.
AND THEN LASTLY, BEFORE I YIELD THE FLOOR, LET ME THANK THE CHIEF OF STAFF BECAUSE IN ALL OF THESE MEETINGS, FINANCIAL MEETINGS, MARETTE, HANNAH HAS BEEN IN ALL OF THEM.
UM, PROBABLY KNOWS THE BUDGET, UH, AS MUCH AS WELL, MAYBE SLIGHTLY LESS THAN I DO
NOW, I'M HONORED TO YIELD THE FLOOR TO THE CHAIR OF, UH, BFA.
THAT IS NONE OTHER THAN, UH, UH, DAVID MARTIN.
AND I DO WANT TO THANK HIM, UH, FOR HIS LEADERSHIP ON THE TRUST.
AND I DO WANT TO THANK HIM FOR HIS FINANCIAL GUIDANCE AND ADVICE.
UH, HE'S BEEN A STRONG, STELLAR FISCAL LEADER AND HAS HELPED TO KEEP US ON TRACK.
IT'S ALWAYS TOUGH TO FOLLOW SYLVESTER TURNER TO THE PODIUM, BUT THIS IS MY 11TH BUDGET, MAYOR, AND I THINK COUNCIL MEMBER CISNEROS AND ROBINSON, THIS IS YOUR 10TH.
AND THEN THIS IS OUR FOURTH WORKING TOGETHER AS A GROUP.
SO IF WE KNOW SOMETHING, WE SHOULD KNOW IT BY NOW, BUT TOMORROW WE'LL BEGIN AT NOON WITH A SERIES OF BUDGET WORKSHOPS.
SO I ALWAYS GET NERVOUS AND I ALWAYS GET EXCITED ABOUT THIS OPPORTUNITY.
WE HAVE 23 INDIVIDUAL DEPARTMENT BUDGETS THAT WE'RE GONNA ANALYZE, AND THEN WILL JONES WILL HAVE HIS FIVE YEAR FORECAST, AND THEN CONTROLLER BROWN NEXT THURSDAY, WE'LL HAVE HIS PROJECTIONS AS WELL.
BUT JUST ONE THING THAT I'D LIKE TO EMPHASIZE, THE MAYOR NEVER GIVES HIMSELF AND HIS DEPARTMENT ENOUGH CREDIT NEVER DOES, BUT HE'S ALWAYS BEEN THAT WAY.
WHEN YOU LOOK AT THE REVENUE SIDE, 7.7 INCREASE, PERCENT INCREASE IN PROPERTY TAX REVENUE, AND IN OUR PROJECTION OF A 3% DECREASE ON THE SALES TAX REVENUE, AN EXTREMELY CONSERVATIVE NUMBER TO MAKE SURE THAT WE PROJECT FOR THE FUTURE, WHAT WE'RE DOING TODAY ON THE EXPENDITURE SIZE, 4.3% INCREASE IN EXPENDITURES, OF WHICH 6% GOES TO FIRE, 3% GOES TO HPD.
THOSE ARE THE TWO LARGEST BUDGETS YOU HAVE.
BUT YET, A 4.3% ON THE EXPENDITURE SIDE.
WHAT I'D LOVE FOR EVERYBODY IN THIS ROOM TO REALLY FOCUS IN ON IS A POSITION THAT WE'RE IN WITH DEBT.
[00:35:01]
EVERY CITY ACROSS THE UNITED STATES STARTS WITH SHORT AND LONG-TERM DEBT LIABILITIES THAT THEY'RE OBLIGATED TO PAY.IN 2013, WHEN I ENTERED THIS OFFICE THAT WAS ON THE HEELS OF LAYOFFS AND FURLOUGHS, THAT WAS ENTERING AN ADMINISTRATION WHERE WE HAD $160 MILLION IN DEFICIT THAT WAS PROJECTED IN YOUR FIRST YEAR.
AND I ALWAYS TELL PEOPLE, DEBT IS NOT A FOUR LETTER WORD, BUT THE WAY YOU ENGINEER YOUR WAY OUT OF DEBT IS CRITICALLY IMPORTANT TO THE FINANCIAL STABILITY OF ANY ENTITY, ESPECIALLY A PUBLIC ENTITY.
SO LET'S GO BACK TO 2016 WHEN YOU FIRST CAME INTO OFFICE.
RUNAWAY UNFUNDED PENSION LIABILITY, LET ME REPEAT THAT.
RUNAWAY UNFUNDED PENSION LIABILITY, UNDERFUNDED OPEP, OTHER POST-EMPLOYMENT BENEFITS.
PRIMARY CONTRIBUTION TO THAT IS MEDICAL COST FOR OUR RETIREES.
THESE ARE TWO SUBSTANTIAL LIABILITIES THAT WE FACED IN 2016, AND WE WERE WARNED BY OUR CREDIT AGENCIES, MOODY'S, STANDING IN PORT FITCH, YOU BETTER DO SOMETHING ABOUT IT, OR YOU'LL BE THE NEXT DETROIT.
AND THAT WORD WAS WHISPER AROUND CITY HALL.
SO OUR SHORT AND LONG TERM, BYRON NEEDED TO TAKE A LITTLE BIT DIFFERENT APPROACH WORKING WITH THE BUSINESS COMMUNITY, THE GREATER HOUSTON PARTNERSHIP, AND EVENTUALLY THE VOTERS IN THE CITY OF HOUSTON.
WE STAND HERE TODAY AND WHAT WE'RE LOOKING AT SHOULD BE, SHOULD BE A HARVARD BUSINESS SCHOOL, TAKES CASE STUDY ON PUBLIC ENTITY DEBT REFORM.
LET ME REPEAT MYSELF, THE CITY OF HOUSTON AND WHAT WE'VE BEEN ABLE TO ACCOMPLISH, AND SINCE 2016 IN YOUR ADMINISTRATION SHOULD BE A HARVARD BUSINESS SCHOOL CASE STUDY ON HOW ENTITIES DEAL PUBLIC ENTITIES DEAL WITH DEBT REFORM.
SO AS WE PREPARE FOR JULY 1ST, WHICH IS BEGINNING OF OUR FISCAL YEAR, 24 AND 50% OF OUR BUDGET, WE WILL BE IN CHARGE OF 50%.
WE WILL TURN OVER TO A NEW ADMINISTRATION PENSION.
DEBT IN 2016 WAS $8.2 BILLION, $8.2 BILLION.
AND WHILE WE DID THE REDUCTIONS, THE THREE PENSION SYSTEMS IN THE CITY ARE IN BETTER SHAPE TODAY THAN THEY'VE EVER BEEN IN.
SO YOU LOOK AT THE OPEP OTHER POST-EMPLOYMENT BENEFIT DEBT, 2016, $6.1 BILLION TODAY, $4.5 BILLION, ALMOST 50% DECREASE IN THE LIABILITY ON OPE.
I, AGAIN, THIS DOESN'T, THIS ISN'T ACCOMPLISHED IN EVERY CITY ACROSS THE UNITED STATES.
SO WITH OUR PROPOSED BUDGET, THE ADMINISTRATION HAS ESTABLISHED FOR THE FIRST TIME AN OPEP TRUST ACCOUNT WITH THE CONTRIBUTION OF $10 MILLION TO OFFSET FUTURE POST-EMPLOYMENT BENEFIT COSTS.
AND WITH ONGOING CONTRIBUTIONS FROM FUTURE ADMINISTRATIONS, OUR EP LIABILITY IS ESTIMATED TO BE REDUCED DOWN TO 1.1 BILLION, ANOTHER 3.48 REDUCTION.
SO IF YOU LOOK AT DEBT, EVERYBODY CARRIES DEBT IN THE WORLD THAT THEY LIVE IN.
CITIES ARE ENORMOUS WITH THE AMOUNT OF DEBT THAT THEY INCUR EACH AND EVERY YEAR.
SO YOU LOOK AT, WE, WHAT WE'VE DONE, AND I'LL INCLUDE WE'VE DONE IN THIS ADMINISTRATION, IS TAKEN DOWN A SIGNIFICANT IMPACT AND MADE A DIFFERENCE IN PENSION LIABILITIES AND OPE LIABILITIES, WHICH WERE THE MOST SIGNIFICANT CHALLENGES THIS CITY, CITY FACED IN THE YEAR 2016.
SO WHILE YOU DON'T GIVE YOURSELF ENOUGH CREDIT, I WILL, BECAUSE WHAT YOU HAVE ACCOMPLISHED HAS BEEN TREMENDOUS WORKING WITH YOUR TEAM.
WELL, SOME OF US ARE EXITING STAGE, RIGHT? BUT IT'S BEEN A PLEASURE TO WORK AND TO DO THIS BECAUSE, YOU KNOW, YOU GET MAD AT ME SOMETIMES WHEN I INTRODUCE YOU IN PUBLIC AND I CALL YOU CHEAP
SO THIS IS A TREMENDOUS BUDGET THAT NEEDS TO BE LOOKED AT, BUT MORE IMPORTANT PEOPLE, DYLAN FIRST PAGE OF THE CHRONICLE SHOULD BE WHAT WE'VE DONE ON PENSION LIABILITIES AND DEBT FINANCING.
SO I'LL LOOK AT YOU 'CAUSE I KNOW YOU JUMPED FROM THERE TO THERE TO GET READY FOR YOUR, UH, QUESTIONING.
BUT MAYOR, TEAM ADMINISTRATION, COUNCIL MEMBERS, FANTASTIC JOB.
UH, THIS IS THE BEST BUDGET THAT I'VE EVER SEEN IN MY 11 YEARS.
I WOULD GARNER THAT IT'S THE BEST BUDGET THAT WE'VE EVER HAD IN THE CITY OF HOUSTON.
$220 MILLION OVER THE REQUIRED 7.5%
[00:40:01]
ON THE GENERAL FUND.AND AGAIN, WHAT WE'VE DONE ON THE DEBT, UH, KUDOS TO EVERYBODY.
AND AS WE PREPARE TO TAKE QUESTIONS, I KNOW ON, ON THE NATIONAL LEVEL, CHIEF SLINKER, UM, MANY OFTENTIMES PEOPLE TALK ABOUT DEFUND, DEFUND, POLICE, I MEAN, ON, THAT'S ON THE NATIONAL LEVEL, AND THEY ALWAYS FOCUS ON THOSE OTHER CITIES.
UM, THEY'VE NEVER REALLY, THEY'VE NEVER TALKED ABOUT THE CITY OF HOUSTON, WHAT THE CITY OF HOUSTON HAS DONE, BECAUSE THIS CITY HAS NEVER DEFUNDED POLICE, NEVER.
UM, SO A LOT OF POSITIVE THINGS THAT ARE HAPPENING IN OUR CITY.
UM, AND I COULD JUST GO DOWN, GO DOWN THE, THE LINE IN EVERY DEPARTMENT.
UH, BUT I DO, AND I'M TAKING MY TIME, BUT LOOK, THIS IS MY, THIS IS THE FINAL ONE, OKAY,
SO I'M, I'M GONNA TAKE MY TIME, TAKE ALL THAT, YOU KNOW, BECAUSE I REALLY, I REALLY DO, I REALLY DO WANT TO THANK EACH AND EVERY ONE OF THE DEPARTMENTS.
I RE I REALLY, I REALLY DO BECAUSE AS YOU ALL KNOW, UM, WE WORK ON THESE BUDGETS, NOT JUST DURING BUDGET TIME.
WE ARE HAVING CONVERSATIONS ALL THROUGHOUT THE YEAR AND, UH, AND THEY'RE TOUGH CALLS WHEN WE DON'T WANT TO LOSE STAFF BECAUSE THEY CAN GET PAID MORE OUT IN THE PRIVATE WORLD, OR THEY'RE ASKING FOR MORE, NOT BECAUSE THEY DON'T DESERVE IT.
UH, THEY DO DESERVE IT AND NEED IT.
AND THEN THERE HAVE BEEN TIMES OVER THE LAST, SAY, YEARS WHEN WE'VE ASKED THE BUDGET DEPARTMENTS TO CUT AND THOSE ARE DIFFICULT CALLS OR, YOU KNOW, OR YOU DON'T FILL POSITIONS.
BUT HAVING SAID THAT, THE DEPARTMENT, THROUGH THEIR OWN INGENUITY, CREATIVITY, UM, WE HAVE RISEN TO THE CASE AND, AND MET CITY SERVICES AS BEST WE COULD OFTENTIMES.
SO I REALLY, REALLY WANT TO THANK THE DEPARTMENTS AND THE DIRECTORS FOR BEING ON THIS JOURNEY, UH, WITH US COLLECTIVELY.
SO THANK EACH AND EVERY, EVERY ONE OF YOU.
HAVING SAID THAT, DON'T WANNA PROLONG.
ARE THERE ANY QUESTIONS FROM ANYONE, UH, THAT ANY OF US CAN, CAN ADDRESS? HI, MAYOR.
UM, YOU MENTIONED IN THERE THAT YOU VOTE THAT THE REVENUE CAP IS USEFUL ANYMORE.
ARE THERE ANY PLANS TO ADJUST THAT ON THE SHE'S BALLOT? I HAVE NO PLANS AT THIS AT THIS MOMENT.
UH, IS THERE ANY ESTIMATE ON WHAT THE DEFICIT WOULD'VE BEEN ABSENT THE ARPA FUNDING? I KNOW YOU MENTIONED YOU WOULD'VE BEEN ABLE TO CLOSE IT WITH THE FUND BALANCE, BUT I JUST DUNNO IF THERE WAS A NUMBER.
QUITE FRANKLY, I, I, I WANT TO GIVE THE, THE, UH, BIDEN AND HARRIS ADMINISTRATION AND CONGRESS A GREAT DEAL OF CREDIT BECAUSE, UM, THE ARPA FUNDING HELPED US TO STAND UP THE 2022 FISCAL YEAR 2022 AND FISCAL YEAR 2023.
SO IT, IT BOUGHT US TIME AND IT BOUGHT TIME FOR THE ECONOMY TO RECOVER.
UH, SO IN THE ABSENCE OF IT, NOT JUST THE CITY OF HOUSTON, BUT CITIES ACROSS THE BOARD WOULD'VE GONE, GONE UNDER.
I MEAN, WE'VE HAD, WE WOULD'VE HAD TO HAVE LAID OFF 2000 EMPLOYEES AND CUT SERVICES.
SO IN FISCAL YEAR 2022 AND FISCAL YEAR 2023, THOSE FUNDS WERE INSTRUMENTAL EVEN IN FISCAL.
UH, AND AS WE MOVE FORWARD IN FISCAL YEAR 24, THEY'LL BE INSTRUMENTAL, BUT THEY'RE ALLOWING US TO DO SOME OTHER THINGS LIKE THE FUNDING TO THE ARTS THAT'S IN, YOU KNOW, THAT'S IN ADDITION TO WHAT YOU'LL FIND IN THE REGULAR BUDGET, THE 5 MILLION, UH, THE ONE CLEAN HOUSTON, FOR EXAMPLE, ILLEGAL DUMPING, THINGS OF THAT NATURE, UH, THAT'S ALLOWING US TO DO SOME THINGS AND PROVIDING CONTINUOUS PAY FOR YEAR TWO AND YEAR THREE CRISIS INTERVENTION.
AND WHEN YOU START TALKING ABOUT, UH, DOMESTIC ABUSE, UH, MENTAL BEHAVIORAL HEALTH ISSUES, AND RESPONDING CRI, THE CRISIS INTERVENTION RESPONSE TEAM, UM, AND PAYING FOR THEM FOR YEAR TWO AND THREE.
SO THE OPERA FUNDING HAS BEEN INSTRUMENTAL IN ALLOWING US IN A CREATIVE WAYS TO DO THOSE THINGS.
UM, AND IF WE DIDN'T HAVE THOSE DOLLARS IN FISCAL YEAR 22 AND 23, YEAH, THEN THEY CERTAINLY WOULD'VE HAD A DIRECT NEGATIVE IMPACT FOR FISCAL YEAR 24.
SO THEY HAVE DONE PRECISELY, I THINK, WHAT THEY WERE INTENDED TO DO WITH US UTILIZING THE DOLLARS IN THE WAY THEY INTENDED US TO USE THEM.
I THINK AFTER, YOU KNOW, THE LAST REPORT THAT THE CITY DID FOR ARPO IS THAT THEY HAD SPENT, UH, $343 MILLION PLUS THIS ONE
[00:45:01]
60, I THINK THAT WOULD BE AROUND A HUNDRED LEFT OVER.IS IT YOUR ATTEMPT TO LEAVE THAT FOR THE NEXT MAYOR OR WILL YOU GUYS
SO, UM, I HAD THIS CONVERSATION, FOR EXAMPLE, WITH FINANCE TEAM ABOUT A WEEK AGO.
UH, ALL OF THOSE DOLLARS HAVE PRETTY MUCH NOW BEEN OBLIGATED AND BAR DOLLARS.
YES, BECAUSE BEAR IN MIND, UM, WE DIDN'T WANT TO START SOME SERVICES AND THEN DROP THEM AT THE END OF DECEMBER OF, OF THIS YEAR.
SO WITH RESPECT TO THE CRISIS INTERVENTION IN HPD, THE FUNDING CONTINUES FOR THE NEXT TWO TO THREE YEARS.
SAME THING WITH ONE CLEAN HOUSTON.
SO WHEN YOU, WHEN YOU TAKE INTO EFFECT THOSE OUT YEARS THAT ARE BEING COVERED BY THE OPERA FUNDING, THOSE DOLLARS HAVE BEEN PRETTY MUCH COMMITTED.
I DON'T WANNA HOP MIC, BUT SAME THING FOR SAME, SAME THING FOR SOME OF OUR HOMELESS INITIATIVES AS WELL.
I WANTED TO ASK YOU ABOUT THE, THE DD THAT'S, SORRY, THAT'S SORRY, TRANSFER AS WELL.
SO DOES ALL THAT MONEY GO INTO THE CIP OR HOW DOES THAT MONEY END UP GETTING SPENT? UH, LISTEN, SIR, YOU WANNA COME AND TAKE THAT ONE? I WILL.
YEAH, IT DOES GO, IT GOES TO DISTRICT
SO I MEAN, THE WHOLE POINT OF IT IS FOR THE PAY AS YOU GO.
SO AS THE DEBT IS PAID DOWN, THE CAPTIVE REVENUE AMOUNT INCREASES AND ALL OF THAT GOES TOWARDS, UH, CAPITAL PROJECTS.
AND I KNOW, I KNOW RESIDENTS HAVE BEEN MAKING REQUESTS ABOUT SWAT AND LDP.
DOES THIS BUDGET, UH, CONTINUE THE $40 MILLION ALLOCATION OF SWAP 20 PLUS, YES.
IS 20 PLUS 20 AND PLUS WE'RE LOOKING, UH, TRYING TO ENCOURAGE THE COUNTY TO GIVE EVEN MORE DOLLARS TO THE SWAT PROGRAM.
SO WE'LL BE ABLE TO, WE'LL BE ABLE TO ADD MORE DOLLARS TO SOME OF THE INITIATIVES THAT THEY HAVE BEEN ASKING FOR.
UM, AND THEN I WILL TELL YOU THAT I AM RELOOKING OR TAKING A SECOND LOOK AT POLICIES THAT CHANGED A COUPLE OF DECADES AGO, UH, IMPACTING MAINTENANCE, FOR EXAMPLE, OF OPEN DITCHES.
AND SO, UM, I'D BE LOOKING TO MAKE SOME RECOMMENDATIONS TO CITY COUNCIL.
AND HOW ABOUT THE LOCAL DRAINAGE PROJECTS? IS THAT FUNDING GOING UP AS WELL, OR THE SWAT PROJECTS? I THINK THERE'S SWAT AND LDP.
ANY OTHER QUESTIONS? THIS IS A TOPIC, OFF TOPIC, AND I APOLOGIZE FOR, CAN YOU WAIT IF IT'S OFF TOPIC? CAN WE WAIT? JUST, YES.
ARE THERE ANY OTHER QUESTIONS RELATED TO THE PROPOSED F 24 BUDGET? ANYTHING ON THE BUDGET? KEN? WE'LL, WE'LL GET WITH YOU IN A MINUTE.
UH, ANYONE ELSE ON THE BUDGET? MAYOR, TALK ABOUT WHEN THE, UH, COUNCIL GETS THE BUDGET.
LET'S, YEAH, LET ME HAVE WILL, WILL REALLY QUICK.
I JUST WANTED TO, UM, FIRST OF ALL, THANK THE MAYOR.
UM, I KNOW HE, HE GAVE ME A LOT OF KUDOS, BUT, UM, I'VE BEEN ABLE TO LEARN A LOT FROM HIM SINCE HE CAME INTO THE OFFICE AND IT REALLY ELEVATED MYSELF, SO I REALLY THANK YOU FOR THAT.
UM, I DO STAND BEHIND THIS BUDGET, THAT'S ONE OF THE STRONGEST THAT WE'VE EVER PRESENTED.
UM, AND I APPRECIATE THE MAYOR FOR RECOGNIZING MY TEAM, BUT I DO WANT TO CALL OUT MY DEPUTY DIRECTOR OVER THE BUDGET, T REESE, PLEASE STAND.
HER AND HER TEAM ARE THE ONES THAT WORK THE LATE NIGHTS.
UM, AND PAULA, PAULA NEXT TO HER, UM, I REALLY, I, IT COULD BE UP HERE AS WELL.
THEY DO ALL THE HARD WORK OF PUTTING THIS TOGETHER, SO THANK YOU.
T UM, TO, TO MY FELLOW DIRECTORS, UH, I REALLY APPRECIATE, UM, THE SUPPORT, UM, AND THE WORKING TOGETHER ON THIS BUDGET.
THIS WAS A TRANSITION BUDGET FOR US WITH OBB, AND IT REQUIRED A LOT OF WORK FROM YOU ALL, AND I REALLY APPRECIATE IT.
UM, WE PUT IN A LOT OF WORK TO TRY AND CHANGE THE BUDGET AND CHANGE HOW WE, WE SHARE THE BUDGET WITH THE CITIZENS AND WITH COUNCIL.
UM, AND I COULD NOT HAVE DONE IT WITHOUT MY FELLOW DIRECTORS AND THE CFOS AND ESPECIALLY MY TEAM.
AND AGAIN, MAYOR, IT'S BEEN AN HONOR WORKING, UH, FOR YOU AND I'VE LEARNED A LOT, AND I'M LOOKING FORWARD TO CARRYING THAT ON.
I DO WANT TO, I DO WANNA MAKE NOTE, AND DYLAN, YOU DID ASK A QUESTION ON OPERA FUNDING AND, UM, THE AMOUNT THAT'S ENCUMBERED, UM, BECAUSE WHAT YOU MAY NOT SEE, AND WHEN I LOOKED OVER AND SAW LISA, AND THEN IT KIND OF HIT ME, UH, LIKE FOR THE POLICE RADIOS, THAT IS A $37 MILLION COMMITMENT TO BE PAID OVER SEVEN YEARS.
WELL, TO HELP THE NEXT MAYOR OUT, UH, WHOEVER HE
YEAH, I KNOW, YOU KNOW, I SHOULDN'T LEAVE, BUT, YOU KNOW,
[00:50:01]
BUT INSTEAD OF JUST SAYING, OKAY, THE RADIO'S GONNA COST 37 MILLION, YOU GO FIND THE 37 MILLION, WE ARE UTILIZING SOME OF THAT OPERA FUNDING, I THINK 15 TO $20 MILLION TO PAY DOWN ON THOSE RADIOS TO GIVE THE NEXT ADMINISTRATION OVER A SEVEN YEAR PERIOD TIME TO FIND THE ADDITIONAL DOLLARS.SO THOSE ARE THE SORT OF COMMITMENTS THAT ARE BEING USED BY THE OPERA DOLLARS THAT, BUT FOR, YOU KNOW, YOU WOULD'VE HAD TO LOOK SOMEPLACE ELSE.
SO WHEN YOU ADD THOSE TYPE OF, UM, UM, DOWN PAYMENTS COMING FROM OPERA FUNDING, YOU KNOW, IT JUST MAKES IT EASIER FOR THE NEXT ADMINISTRATION TO COME IN OR AT LEAST GIVE THEM TIME TO TRY TO WORK SOME THINGS OUT.
AND SAME THING WITH, WITH, WITH THE CITY COUNCIL AS WELL, UH, FOR ALL OF THEM WHO, WHO WILL BE, BE RETURNING.
SUNSHINE, YOU KNOW, IT'S, IT'S MY, IT'S MY FINAL YEAR, SO, SO I'M NOT RUSHING ANYTHING.
SO, I MEAN, YOU KNOW, WE ALL GOOD BUDGET MINUTES.
NOW, NO BUDGET AMENDMENTS, YOU KNOW, DON'T HIT THAT, YOU KNOW.
HAVING SAID I, I'M NOT GONNA HOLD Y'ALL ALONG.
WHAT'S THAT? I HAD A QUESTION.
YEAH, GENTLEMAN, MARY WANTED TO TAKE IT AFTERWARDS.
WHICH ONE? OH, UH, YEAH, WELL, WE CAN WAIT OFF TOPIC.
HAVING SAID ALL OF THAT, THANK YOU ALSO VERY MUCH.