[Special-Called Budget And Fiscal Affairs on May 17, 2023. ]
[00:00:17]
ON IT'S 12:02 PM ON WEDNESDAY, THE 17TH OF MAY.I'D LIKE TO CALL THIS MEETING INTO ORDER AND WOULD LIKE TO WELCOME ALL COUNCIL MEMBERS IN ATTENDANCE.
IMMEDIATELY FOLLOW TODAY'S SPECIAL BFA.
THE FY 2024 BUDGET WORKSHOPS WILL BEGIN WITH THE FINANCE DEPARTMENT PRESENTING AT ONE O'CLOCK HOUSTON PUBLIC LIBRARY AT TWO O'CLOCK AND HOUSTON POLICE DEPARTMENT FOLLOWING AT 3:00 PM ADDITIONALLY, THE BUDGET WORKSHOP SCHEDULE IS POSTED ON THE BFA WEBSITE.
ALL BUDGET AND FISCAL AFFAIR COMMITTEE MEETINGS AND BUDGET WORKSHOPS ARE BROADCAST ON HTV THROUGH THE CITY'S MUNICIPAL CHANNEL.
IN ADDITION TO BEING STREAMED ON THE HTV FACEBOOK PAGE, SIGN UP FOR PUBLIC COMMENT WAS COMPLETED YESTERDAY AT THREE.
HOWEVER, A SPEAKER'S PUBLIC LIST THAT'S BEEN PROVIDED TO EACH COUNCIL MEMBER FOR TODAY'S PRESENTATION.
IF YOU ARE HERE IN PERSON AND DID NOT GET A CHANCE TO SIGN IN YESTERDAY, THERE'S A SIGN IN SHEET AT THE FRONT TABLE.
MY STAFF IS MONITORING THE SIGN IN SHEET.
RAISE YOUR HAND, AND DAMARI WILL BE, UH, CONTACTING OR HAVE THE ABILITY TO PUT YOU ON THE SPEAKER'S LEASE LIST.
THE PUBLIC HEARING ON THE FY 24 BUDGET IS EXPECTED TO OCCUR ON WEDNESDAY, MAY 31ST DURING OUR REGULARLY SCHEDULED CITY COUNCIL MEETING.
AGAIN, THE HEARING ON THE FY 24 BUDGET WILL OCCUR ON WEDNESDAY, MAY 31ST.
DURING REGULARLY SCHEDULED CITY COUNCIL MEETING, I'D LIKE TO WELCOME VICE CHAIR EDWARD J. POLLARD, COUNCIL MEMBER AMY PECK, COUNCIL MEMBER MARY NAN HUFFMAN, COUNCIL MEMBER TIFFANY D. THOMAS AND STAFF FROM COUNCIL MEMBER MIKE KNOX'S, OFFICE.
LETICIA PLUMS OFFICE, CARLOS CISNEROS OFFICE, AND MIKE KNOX'S OFFICE.
AND VICE MAYOR PRO TEM MARTHA CASTEX TATUM'S OFFICE.
DO WE HAVE ANY VIRTUAL COUNCIL MEMBERS? YES.
COUNCIL MEMBER ALCORN, COUNCIL MEMBER ALCORN IS ATTENDING.
VIRTUALLY COUNCIL MEMBERS ATTENDANT ARE ASKED TO KEEP THEIR CAMERAS ON, PLEASE OR LEAVE THE MEETING.
IF YOUR CAMERA IS OFF FOR AN EXTENDED PEOPLE, UH, PERIOD OF TIME, WE WILL, YOU WILL BE REMOVED FROM THE VIRTUAL PRESENTATION.
COUNCIL MEMBERS ATTENDANT VIRTUALLY, IF YOU WISH TO SPEAK, PLEASE RAISE YOUR HAND AND TYPE IN CHAT.
MY STAFF WILL THEN COMMENT IN THE CHAT WITH THE EXISTING QUEUE AND PROVIDE UPDATES AS THEY ARE AVAILABLE.
ONCE YOUR COMMENT OR QUESTIONS HAVE BEEN EXECUTED, PLEASE LOWER YOUR HAND AND WE WILL PROCEED WITH THE REST OF THE QUEUE.
AT THIS TIME, IT IS MY HONOR TO WELCOME CITY OF HOUSTON FINANCE DIRECTOR WILLIAM JONES, AND DEPUTY DIRECTOR TIA RUEZ TO PROVIDE THE FISCAL YEAR 2024 BUDGET OVERVIEW AND THE ALWAYS INTERESTING GENERAL FUND FIVE YEAR FORECAST.
THANK YOU FOR YOUR PRESENTATION.
DIRECTOR JONES, THE FLOOR IS YOURS.
ALRIGHT, THANK YOU CHAIR MAYOR PROTI, VICE CHAIR POLLARD, AND COUNCIL AND STAFF.
UM, I'M HAPPY TODAY TO PRESENT TO YOU THE, THE FY 24 BUDGET OVERVIEW AND THE FIVE YEAR FORECAST.
UM, IF I COULD JUST BEFORE I START, I DO WANNA RECOGNIZE, UM, MY SUPPORT SYSTEM HERE IN FINANCE, AS YOU MENTIONED, SITTING NEXT TO ME IS DEPUTY DIRECTOR T RUIZ.
UM, SHE'S THE ONE WHO OVERSEES THE FINANCIAL PLANNING AND ANALYSIS, AND SO THEY'RE THE ONES RESPONSIBLE FOR PUTTING THIS BUDGET TOGETHER.
UH, THEY'VE WORKED MANY NIGHTS AND WEEKENDS TO DO THAT.
I ALSO WANT TO ASK HER TEAM, THE FPNA TEAM TO STAND, PLEASE.
YEAH, SO YOU CAN SEE HOW FEW NUMBERS WE HAVE, BUT THESE ARE THE PEOPLE THAT WORK NIGHTS AND WEEKENDS TO PUT THIS BUDGET TOGETHER.
AND I ALSO WANNA RECOGNIZE, UH, DEPUTY DIRECTOR MELISSA DKI AND HER TEAM THAT THEY COULD STAND.
WE ALL WORK TOGETHER TO BE ABLE TO PUT THIS BUDGET TOGETHER, AND I COULD NOT DO THIS WITHOUT THEM, SO I, I REALLY WANT TO GIVE THEM THE, THE RECOGNITION THEY DESERVE.
SO THANK YOU T MELISSA, AND TEAM.
SO WITH THAT BEING SAID, WE'LL GET RIGHT INTO THE PRESENTATION.
IF WE CAN GO TO, UH, SLIDE, UH, SIX, PLEASE.
UM, SO ONE OF THE THINGS I WANT TO FOCUS ON THIS YEAR IS, UH, THE ELEMENTS OF THE BUDGET, UH, RELATED TO OUTCOME-BASED BUDGET AND THE THINGS THAT WE'VE CHANGED IN THE BUDGET.
SO, AND THIS IS WHAT WE'RE CALLING CONNECTING BUDGET TO STRATEGY.
UM, SO THIS IS, AGAIN, THIS IS THE FIRST YEAR WE'VE IMPLEMENTED OUR OUTCOME-BASED BUDGET.
AND AS YOU CAN SEE ON THERE, MY VISION FOR THIS IS TO TRANSFORM THE WAY LEADERSHIP MAKES DECISIONS ON THE ALLOCATION OF FINANCIAL RESOURCES BY FOCUSING ON THE EXPECTED RESULTS, OUTCOMES OF THE CITY SERVICES AND PROGRAMS.
[00:05:01]
SO WE'VE SPENT THE PAST COUPLE OF YEARS WORKING VERY HARD TO, UH, PRESENT YOU WITH THIS OUTCOME-BASED BUDGET DEPARTMENTS ACROSS THE CITY.WE'VE HAD WORKSHOPS, COUNTLESS WORKSHOPS, SO THAT WE CAN SHOW YOU THE BUDGET IN A DIFFERENT WAY.
UM, I'VE HEARD MANY TIMES BEFORE AROUND COUNCIL ABOUT WHAT ARE THE, THE CORE SERVICES OF THE, OF, OF THE DIFFERENT DEPARTMENTS.
AND SO THIS, THIS YEAR WITH ALL OF THE DEPARTMENTS, YOU WILL SEE, UH, A DIFFERENT TYPE OF PRESENTATION FOR THE BUDGET.
SO I HOPE IT WILL GIVE YOU AND THE CITIZENS A BETTER IDEA OF WHERE THE MONEY IS GOING.
YOU'LL ALSO SEE MORE OF A FOCUS ON PERFORMANCE.
UM, SO AGAIN, SOME OF THE GUIDING PRINCIPLES TO CLEARLY COMMUNICATE WHAT IS NEEDED FROM CITY STAKEHOLDERS, EVALUATE LEADING BUDGET PRACTICES, INTRODUCE PROCESS EFFICIENCIES, AND ADOPT AND REFINE PROCESS CHANGES.
SO SOME OF THE IMPACTFUL BENEFITS OF OBB, UM, OF COURSE, INFORMED DECISION MAKING, MEASURABLE RESULTS, UH, LINKING TO GOALS, UH, EFFICIENCY AND TRANSPARENCY.
UM, SO IF ON THE NEXT SLIDE IS WHERE YOU'LL SEE WHAT I JUST MENTIONED.
AND THEN OF COURSE, I ALSO WANT TO REMIND YOU, THIS IS OUR FIRST YEAR DOING THIS.
WE PUT IN A LOT OF EFFORT, UM, BUT IT IS THE FIRST YEAR AND I EXPECT IT TO IMPROVE OVER TIME.
SO A LOT OF THE THINGS YOU'LL SEE FROM THE DEPARTMENTS WE'RE, WE'RE TRYING TO LEVEL SET.
UM, WHAT, WHAT ARE, WHAT SHOULD WE BE MEASURING? WHAT ARE THE PROGRAMS THAT WE MAY SEE AS WE GO THROUGHOUT THE YEAR? WE, WE TWEAK THAT AS WE GO.
UM, BUT AGAIN, IT, THIS IS A, A BRAND NEW WAY OF LOOKING AT THE BUDGET.
UM, SO AS YOU LOOKING AT NOW THE, THE STRATEGY MAP.
SO AGAIN, EFFORTS TO DATE, UH, INCREASED STAKEHOLDER PARTICIPATION, UM, AND THEN OF COURSE, UH, DELIVERING THE PROGRAM INVENTORY THROUGHOUT THE CITY.
UM, AND SOME OF THE BIG CHANGES YOU'LL SEE ON THE CONNECTING BUDGET TO STRATEGY.
UH, WE'VE DONE THE, THE, THE MAYOR'S PRIORITY.
WE DID A CITIZEN SURVEY AHEAD OF THE BUDGET TO GET CITIZEN IMPACT.
UM, AND SO ALL OF THAT WENT INTO HELP INFORMING THIS BUDGET.
NOW, GOING BEYOND, UH, TODAY, WE'RE, WE'RE ALSO GONNA LOOK AT HOW CAN WE REPORT.
SO WE'VE CHANGED HOW WE VIEW THE BUDGET, HOW ARE WE GONNA REPORT ON IT GOING FORWARD? SO WE'RE HOPING GOING FORWARD, WE'LL BE ABLE TO SHOW YOU ALSO THE MONTHLY REPORT IN A DIFFERENT WAY THAT ALSO FOCUSES ON THE PROGRAMS AND PERFORMANCE MEASURES.
SO ON THE NEXT SLIDE, ON, UH, OBB ELEMENTS, AGAIN, AS I MENTIONED, THE HOUSTONIAN INPUT, WE DID PUT OUT A SURVEY AHEAD OF THE BUDGET CYCLE.
UM, I PRESENTED THAT TO BFA, UH, LAST MONTH, I BELIEVE.
SO WE HAD REALLY GREAT PARTICIPATION FROM, UM, THE CITIZENS.
I THINK ALL COUNCIL DISTRICTS WERE REPRESENTED ABOUT 2,500 OR SO, UH, CITIZENS PROVIDED IMPACT.
AND AGAIN, THAT WAS THE FIRST TIME WE DID THE SURVEY.
AND REALLY FOR THE FIRST TIME, WE WANTED TO GET SOME FEEDBACK FROM THE CITIZENS ON HOW THEY WANNA RECEIVE THE, THE, YOU KNOW, BUDGET INFORMATION, WHAT, WHAT PRIORITIES ARE IMPORTANT.
UM, AND SO I'M VERY PROUD THAT WE'RE ABLE TO DO THAT THIS YEAR AHEAD OF THE BUDGET CYCLE.
AND THEN OF COURSE, THE, UH, THE MAYOR'S STRATEGIC GUIDANCE DOCUMENT, UM, SO THAT THE MAYOR DELIVERED THAT IN FEBRUARY.
AGAIN, THIS IS ALL A PART OF OUR, OUR, OUR CHANGE AND PROCESS THAT BEFORE DEPARTMENTS CAN BUILD THEIR BUDGET, WE NEED TO KNOW WHAT IS THE CITIZEN'S INPUT, AND THEN WHAT ARE THE PRIORITIES OF THE CITY.
SO FOR THE FIRST TIME THIS YEAR, WE DID A STRATEGIC GUIDANCE DOCUMENT THAT IS GUIDING THE BUDGET.
SO IF YOU LOOK AT AND ALL COUNCIL, YOU GUYS SHOULD HAVE RECEIVED THAT BACK IN FEBRUARY, BUT ON HERE YOU'LL ALSO SEE A LINK TO WHERE THE MAYOR'S STRATEGIC GUIDANCE IS ON THE CITY'S WEBPAGE FOR ANYBODY THAT WANTS TO LOOK AT IT.
SO ON THE LANDING PAGE, IT WILL OUTLINE ALL OF THE PRIORITIES, THE FIVE PRIORITIES, AND IT WILL ALSO LIST KEY INITIATIVES THAT ARE IMPORTANT TO THE CITY.
UM, AND SO AGAIN, THIS IS THE FIRST YEAR WE'VE DONE THAT.
AND THEN THEY LOOK AT NUMBER THREE, PROGRAM BUDGETING.
SO AGAIN, WHEN YOU'LL SEE ALL THE WORKSHOPS TODAY, YOU WILL NOTICE A, A, A SHIFT FROM WHAT YOU SAW LAST YEAR WHERE WE WILL FOCUS ON PROGRAMS AND THEN OF COURSE, PERFORMANCE MEASURES.
SO, UH, AT A KEY ELEMENT OF OUTCOME-BASED BUDGET IS HOW ARE WE PERFORMING? SO NOW WE'RE PUSHING DEPARTMENTS THIS YEAR TO, OKAY, YOU, YOU'RE TELLING US WHAT YOU'RE DOING, BUT HOW SUCCESSFUL ARE YOU AT DOING IT? WELL, HOW MUCH OF SOMETHING ARE YOU DOING? UM, HOW EFFICIENT ARE YOU AT DOING THAT? SO YOU WILL NOTICE THOSE KEY CHANGES, UM, IN THE BUDGET PRESENTATIONS THIS YEAR.
AND THEN ON THE NEXT PAGE YOU'LL SEE, UM, SOME CHANGES TO THE PUBLICATION.
SO YOU ALL SHOULD HAVE YOUR, YOUR BUDGET BOOK BY NOW.
AND SO WHAT YOU WILL SEE SOME VERY DIFFERENT ELEMENTS IN THE, THE BUDGET BOOK.
SO AGAIN, IF YOU'RE LOOKING AT THIS, THE, THE BEFORE IN OUR BUDGET BOOK, THE DEPARTMENTS WERE, IT IS BROKEN OUT BY SECTION OR BY FUND.
SO IN THIS EXAMPLE, IN IN THE OLD BOOK, YOU WOULD SEE PUBLIC WORKS WOULD SHOW UP IN THE GENERAL FUND SECTION.
THEY SHOW UP IN THE ENTERPRISE SECTION, THEY SHOW UP IN A SPECIAL FUND SECTION, AND THEY SHOW UP IN THE REVOLVING FUND SECTION.
SO YOU WOULD HAVE TO GO TO ALL THOSE DIFFERENT SECTIONS JUST TO GET AN IDEA OF WHAT HOUSTON PUBLIC WORKS DOES.
NOW, WHAT WE'VE DONE IN THIS NEW PUBLICATION, ALL OF THE DEPARTMENT'S INFORMATION IS LOCATED IN ONE PLACE.
SO YOU DON'T, YOU NO LONGER HAVE TO SEARCH AND FIGURE OUT, OKAY, WHAT, WHAT FUNDING SOURCE HERE FOR PUBLIC WORKS.
PUT FUNDING SOURCES ALL TOGETHER.
AND WHEN YOU LOOK AT THE PROGRAMS, IT'LL TELL YOU WHICH FUNDING SOURCE SUPPORTS THAT PROGRAM ALL IN ONE LOCATION.
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THAT, THAT WE ARE MAKING THE BUDGET A LITTLE MORE TRANSPARENT FOR THE CITIZENS FOR COUNCIL, SO THAT YOU CAN BETTER UNDERSTAND WHAT DEPARTMENTS DO.AND THEN ON THE NEXT SLIDE, UH, SO AGAIN, WITH THAT CHANGE TO, UH, FOCUSING ON PROGRAM AND PRIORITY, THIS IS THE FIRST YEAR THAT WE'RE ABLE TO ACTUALLY SHOW HOW WE'RE SPENDING THE BUDGET BY PRIORITY.
SO LOOKING AT THIS CHART, YOU CAN SEE, UH, PUBLIC SAFETY, AND THIS IS FOR, FOR ALL FUNDS.
SO YOU CAN SEE PUBLIC SAFETY, UM, ABOUT 1.7 BILLION, FOLLOWED BY SERVICE AND INFRASTRUCTURE, ABOUT 1.3 BILLION.
AND IT'S WORTH NOTING WHEN YOU AND THE CITIZEN SURVEY RESULTS, THAT IS THE, THE TOP TWO PRIORITIES, UM, THAT CITIZENS ARE CONCERNED ABOUT.
AND SO YOU CAN SEE IN THE BUDGET, THAT'S WHERE THE FUNDING IS GOING.
UM, AND THEN OF COURSE, RESILIENT HOUSTON, SOME FINANCIAL MANAGEMENT, COMPLETE COMMUNITIES, IT'S ABOUT CLOSE TO 4 BILLION.
AND THEN YOU'LL NOTICE THERE'S A CATEGORY CALLED OTHER.
UM, SO THAT CATEGORY IS, IS RELATED TO THE DEBT SERVICE AND SOME INNER FUND TRANSFERS, IT'S ABOUT 2 BILLION.
BUT I, I SEPARATED THAT BECAUSE YOU DON'T WANNA CONFUSE, UM, YOU KNOW, THE, THE DEBT SERVICE PAYMENT, YOU CAN'T TIE IT EXACTLY TO A PROGRAM 'CAUSE IT'S RELATED MORE TO CAPITAL PROJECTS, WHICH IS HANDLED IN THE CIP.
SO I WANTED TO GIVE AN ACCURATE, UM, REPRESENTATION IN THE OPERATING BUDGET OF WHERE THE FUNDING IS GOING.
SO AGAIN, THIS IS THE FIRST TIME WE'VE BEEN ABLE TO SHOW COUNSEL AND TO THE CITIZENS EXACTLY WHERE THEIR FUNDING IS GOING.
AND SO I, I REALLY, I HIGHLY RECOMMEND IN, IN YOUR PROPOSED BUDGET, IF YOU TAKE A LOOK AT THE CONNECTING BUDGET TO STRATEGY TAB, IT HAS A LOT MORE DETAILS ON THE HOW WE'RE SPENDING THE MONEY BY PRIORITY AND THE KEY INITIATIVES AND PERFORMANCE MEASURES FOR EACH OF THOSE, UH, PRIORITIES.
SO NOW LET'S GET TO THE BUDGET.
ON SLIDE 13, YOU'LL SEE THIS IS THE TOTAL BUDGET, INCLUDING ALL FUNDS.
UM, SO TOTAL BUDGET FOR FY 24 IS 6.2 BILLION.
UM, THAT'S AN INCREASE OF ABOUT 6.6% OR 379 MILLION.
AND YOU'LL NOTICE THE ALLOCATION BY FUND REMAIN RELATIVELY THE SAME WITH GENERAL FUND BEING THE LARGEST AT 47%, FOLLOWED BY, UH, WATER AND SEWER AT 29%, AVIATION AT 10 AND OTHER FUNDS INCLUDING SPECIAL FUNDS AT ABOUT 14%.
BUT OVERALL, THE ALLOCATION OF THE FUNDING HAS REMAINED RELATIVELY THE SAME.
SO I WANNA TOUCH BASE ON SOME OF THE LONG-TERM LIABILITIES THAT, YOU KNOW, WE'VE BEEN HEARING SO MUCH ABOUT, OF COURSE, THE PENSION REFORM, AS WE'VE HEARD THE MAYOR MENTION.
UM, SO WE'VE REDUCED AN 8.2, UH, BILLION LIABILITY, UM, DOWN TO WHERE IT IS NOW AT 2.2 BILLION.
AGAIN, THAT'S A REDUCTION OF 6 BILLION.
UM, AND THEN OF COURSE, ALL THREE PENSION SYSTEMS ARE HEALTHIER TODAY THAN THEY'VE EVER BEEN.
UM, MUNICIPAL POLICE AND FIRE BECAUSE OF THE PENSION REFORM WE HAVE PUT IN PLACE.
AND AGAIN, IT'S VERY IMPORTANT TO KNOW, SINCE WE ARE TALKING ABOUT THE OPERATING BUDGET, THAT AS A RESULT OF THE PENSION REFORM, WE WERE ABLE TO AVOID, UH, SIGNIFICANT INCREASES THAT WOULD'VE BEEN PUT ON THE CITY FOR CONTRIBUTIONS TO THE PENSION SYSTEM.
UM, WE, WE WERE TALKING ABOUT A GAP THAT WOULD PROBABLY EXCEED THREE TO FIVE, 500 MILLION HAD IT NOT BEEN FOR PENSION AND REFORM.
SO WHILE THE LIABILITIES IS EXCELLENT THAT WE WERE ABLE TO REDUCE BY 73%, THE IMPACT IT WOULD'VE HAD ON THE OPERATING BUDGET IS EXTREMELY SIGNIFICANT.
UM, AND THEN ALSO ON THE OPEP REFORM, UM, AGAIN, REDUCE THE CITY'S OPE LIABILITY, WE WERE PROJECTING GET TO GO TO 9.1 BILLION, AND NOW IT WAS, IT WAS DOWN TO 4.5 BILLION AFTER WE DID THE, UH, THE, THE REFORM LAST YEAR.
AND NOW WITH THIS YEAR IN THIS BUDGET, WE ARE INCLUDING THE OPE TRUST.
I KNOW WE HAVE A LOT OF TALK ABOUT THAT.
UM, SO WE'RE GONNA INCLUDE CITYWIDE 10 MILLION CONTRIBUTION TO THE OPE TRUST THAT WILL FURTHER REDUCE THE LIABILITY DOWN TO 1.1 BILLION BY 2048.
AND AGAIN, THAT 10 MILLION IS THE FIRST YEAR CONTRIBUTION, AND THEN WE EXPECT THAT CONTRIBUTION TO ESCALATE YEAR OVER YEAR TWO TO 3 MILLION PER YEAR.
UM, BUT AGAIN, THAT'S GONNA TAKE THAT LIABILITY DOWN TO 1.1 BILLION.
SO LET'S LOOK AT THE CITYWIDE, UH, FTES.
YOU CAN SEE IN, UH, FY 24, WE'RE LOOKING AT ABOUT 21 POINT, UH, 21, UH, FTES CITYWIDE.
UM, WHAT I WANNA POINT OUT ON THIS SLIDE IS, IF YOU NOTICE IN 21 AND 22, YOU SEE QUITE A SIGNIFICANT DROP IN OUR FTE COUNT.
SO YOU'VE HEARD US TALK A LOT ABOUT THE GREAT RESIGNATION, UM, AND THE IMPACT IT'S HAD ON THE CITY.
SO NOW WE GET TO ACTUALLY SEE IT.
I WAS ACTUALLY SURPRISED MYSELF WHEN WE PUT THIS TOGETHER THAT IT, IT'S SO OBVIOUS THAT WE HAD A BIG DIP IN THOSE TWO YEARS, AND THAT'S, AGAIN, IT'S DUE TO THE GREAT RESIGNATION.
UM, AND I DO WANT TO GIVE, UH, SOME RECOGNITION TO DIRECTOR CHEEKS AND HER TEAM, LIKE AS A CITY HR, THEY RECOGNIZE THAT THEY LISTEN TO THE DEPARTMENTS.
WE'VE BEEN HAVING VERY, VERY PRODUCTIVE, UM, JOB FAIRS.
UM, I'VE WORKED WITH HER PERSONALLY TO HAVE, UH, UH, SPECIFIC JOB FAIRS RELATED TO FINANCE.
AND AS A RESULT, WE'VE SEEN GREAT SUCCESS FROM THAT.
SO, UM, THE GREAT RESIGNATION WAS VERY REAL AND HAD A VERY BIG IMPACT.
AND WE AS A CITY, WE ARE HAVING TO ADJUST.
UM, THE WORKFORCE LOOKS DIFFERENT
[00:15:01]
THAN, THAN THE WAY IT LOOKED PRIOR TO THE PANDEMIC, AND WE SEE IT REFLECTED HERE.BUT AGAIN, OUR HR TEAM HAS DONE A GREAT JOB OF TRYING TO KEEP THE CITY AFLOAT AND BRINGING IN AND ATTRACTING AND KEEPING, UH, THE EMPLOYEES THAT WE NEED.
UH, SO AGAIN, THIS IS JUST BREAKING DOWN THE, UH, FTES BY GENERAL FUND.
AND SO YOU CAN SEE 13.5 FTES, A THOUSAND FTES, AND AGAIN, YOU CAN SEE IN 21 AND 22 THAT DIP IN THE GENERAL FUND, AGAIN RELATED TO THE GREAT RESIGNATION.
UM, AND THEN THE, THE BUDGET FY 2324 PROPOSED BUDGET.
WE DO INCLUDE FIVE POLICE, UH, CADET CLASSES AND FOUR IN FY 24 FOR FIRE.
OKAY, WHILE THE NEXT SLIDE LOADS UP THE AMERICAN RESCUE PLAN ACT AGAIN, UM, IN MARCH, 2021 WITH A $65.1 BILLION FEDERAL FUNDING SUPPORT FROM FOR MUNICIPALITIES HAS CONTINUE TO RESPOND TO COVID-19.
SO THE CITY OF HOUSTON RECEIVED 607.8 MILLION.
UM, AND AGAIN, ONE OF THE BENEFITS OF THE ARPA FUNDING IS UNLIKE CARES, WE ARE ALLOWED TO USE ARPA FUNDING TO OFFSET REVENUE LOSS, UM, FOR THE PROVISION OF GOVERNMENT SERVICES.
SO IN THIS BUDGET, UH, WE, WE DID USE 160 MILLION OF ARPA FUNDING.
UH, AND AGAIN, YOU CAN VISIT, UH, THE CITY'S WEBSITE, THE HOUSTON TX LIKE GOV SLASH ARPA TO GET ALL THE DETAILS.
WE HAVE A, UH, BILL KELLY AND ALEXA AND THE TEAM HAVE, THEY'VE DONE A GREAT JOB OF OUTLINING EVERYTHING THAT WE'RE SPENDING WHERE THE MONEY IS GOING ON THE ARPA.
SO PLEASE CHECK THAT OUT IF YOU HAVE ANY QUESTIONS ON EXACTLY WHERE THOSE THOSE FUNDING IS IS BEING ALLOCATED.
OKAY, SO LET'S TALK A LITTLE BIT ABOUT THE GENERAL FUND BUDGET.
SO IT, IT INCLUDES THE 16.6, 16.6 FUND BALANCE OF EXPENDITURES, LESS DEBT SERVICE AND PAY AS YOU GO, UH, WHICH IS WELL ABOVE OUR 7.5%.
UM, AND WHICH IS 220 MILLION ABOVE THE 7.5%.
IT DOES INCLUDE, UH, PAY RAISES FOR MUNICIPAL EMPLOYEES.
IT DOES INCLUDE 6% PAY RAISES FOR THE FIREFIGHTERS AND 3% PAY RAISES.
UH, FOR THE POLICE CLASSIFIED.
WE DO FULLY FUND THE BUDGET STABILIZATION FUND, WHICH IS OVER 20 MILLION AT THIS POINT.
UM, AGAIN, AS I MENTIONED, WE FUND, UH, THE FIVE POLICE CADET CLASSES, FOUR FIRE CADET CLASSES, FULLY FUND ALL THREE PENSION SYSTEMS. THE OPE TRUST THAT I MENTIONED, THE GENERAL FUND CONTRIBUTION IS 8 MILLION IN TOTAL CITY IS CONTRIBUTING 10 MILLION, AND THEN 11.3 MILLION FOR THE MAINTENANCE, REPLACEMENT AND RENEWAL FUND.
AGAIN, THAT'S OUR FUND THAT WE USE TO ADDRESS DEFERRED MAINTENANCE.
SO WITH THIS 11 MILLION, WE'RE NOW UP TO, I BELIEVE, ABOUT 42 MILLION IN TOTAL THAT THE CITY HAS ALLOCATED TOWARDS DEFERRED MAINTENANCE.
UM, SO WHAT THE BUDGET DOES NOT INCLUDE IS ANY DRAW DOWN OF FUND BALANCE, AND IT DOES NOT INCLUDE, UH, ONE-TIME LAND SALES OR DEFERRALS.
SO THE NEXT SLIDE WE KINDA WALK THROUGH, UH, THE GENERAL FUND CHANGES.
YOU CAN SEE ON, ON THE REVENUE, IT'S AN INCREASE ABOUT 2.58%, AND YOU'LL NOTICE A, A DIP IN IN THE SALES TAX.
OF COURSE, WE'RE, WE'RE SHOWING SALES TAX ABOUT 3% LOWER, UH, BEING CONSERVATIVE SALES TAX ARE VERY UNCERTAIN, VERY VOLATILE.
SO WE ARE BEING CONSERVATIVE IN OUR PROJECTION.
UM, AND THEN YOU'LL SEE AN INTERGOVERNMENTAL, A DECREASE OF 10 MILLION, UM, THAT IS RELATED TO, UH, THE CHARITY CARE PROGRAM REIMBURSEMENT AND A RECEIPTS OVER TO COVER REVENUE LOSS.
SO WHEN YOU LOOK AT THE, UH, THE REASON WHY YOU SEE A 10 MILLION, THERE WAS A PROGRAM, 1115 WAIVER PROGRAM THAT WAS JUST A, A GENERAL FUND MATCH.
UM, THAT PROGRAM HAS CHANGED, SO WE NO LONGER HAVE TO DO THAT MATCH ON THE GENERAL FUND.
THAT PROGRAM NOW IS HANDLED, UH, IN THE, THE HEALTH SPECIAL FUND.
SO THAT 10 MILLION DECREASE IS NOT REALLY A CUT TO THE, THE, THE REVENUE WAS JUST AN OFFSET.
UM, AND THEN YOU CAN SEE THE OTHER, UH, AND THE OTHER BIG CHANGE, YOU'LL SEE PAREL PROPERTY TAX AT 97 MILLION.
AND AGAIN, THE PROPERTY TAX IS ESTIMATED AT THE PROP ONE AND H CAP.
UM, SO ALTOGETHER IT'S A $72 MILLION CHANGE ON THE REVENUE.
UM, SO ON THE NEXT SLIDE, AGAIN, YOU'LL SEE, UH, JUST A COMPARISON OF THE 23 ESTIMATED REVENUE.
THIS IS WHEN YOU EXCLUDE OTHER RESOURCES.
AND AGAIN, YOU CAN SEE PROPERTY TAX IN FY 24 MAKES UP ABOUT 48%, UH, 30% SALES TAX.
UH, THEN THE FRANCHISE FEES, WHICH WE CONTINUE TO SEE DECREASE OVER TIME, IT'S ABOUT 5%.
AND THEN THE NEXT SLIDE JUST KINDA SHOWS YOU, UM, A ANOTHER BREAKDOWN OF IT.
SO YOU CAN SEE, ESPECIALLY WE LOOK AT 24, THE 47.6% AND 30.1%.
SO ALTOGETHER SALES TAX AND PROPERTY TAX MAKE UP 77, UH, OVER 77% OF THE, THE, THE GENERAL FUND REVENUE.
AND AGAIN, YOU CAN SEE BY THE OTHER CATEGORIES AS WELL, BUT PRIMARILY WE ARE FUNDED BY PROPERTY TAX AND SALES TAX IN THE GENERAL FUND.
SO SOME ASSUMPTIONS ON THE PROPERTY TAX REVENUE.
UM, THE ESTIMATED TAXABLE VALUE OF 313.2 BILLION, WHICH IS AN INCREASE OF 8.92%.
THE ESTIMATED TAXABLE VALUE NET TAX, UH, THE TAX INCREMENT AGREEMENT IS 267.6 BILLION.
[00:20:03]
AND THEN OF COURSE, ON THE POPULATION, WE ESTIMATE THE POPULATION GROWTH AT 0%.UM, BECAUSE WE DON'T HAVE THE US CENSUS BUREAU POPULATION, THAT SHOULD BE COMING SHORTLY.
UM, AND IT'S IMPORTANT TO NOTE THAT ONCE WE GET THAT NUMBER, THAT WILL CHANGE, UH, POTENTIALLY OUR REVENUE PROJECTION.
IF IT'S HIGHER, WE'LL WE'LL HAVE TO CHANGE OUR CAP, BUT IF IT'S LOWER, WE MAY ALSO HAVE TO REDUCE, WHICH MEANS WE MAY HAVE TO PULL FROM THAT FUND BALANCE THAT'S AVAILABLE IF WE HAVE TO DECREASE OUR REVENUE.
OKAY, INCREASE IN PROPERTY TAX, UH, REVENUE OF 7.65%, WHICH AGAIN IS 97.3 MILLION.
AND THE, THE OVER 65 DISABLED EXEMPTIONS ARE CURRENTLY AT 260,000.
THIS KINDA SHOWS YOU THE TREND OF THE PROPERTY TAX.
YOU CAN SEE THE ACTUAL VERSUS BUDGET, AND OF COURSE WE BUDGET AT THE CAP.
UM, SO THERE'S VERY LITTLE VARIATION YOU SEE THERE, THERE VERY, AND, AND WHEN YOU LOOK AT 24, OF COURSE, WE'RE PLANNING TO BUDGET AGAIN AT THE CAP.
SO WE DON'T EXPECT TOO MUCH VARIANCE BETWEEN THE YEARS.
THE NEXT SLIDE, IT'S A VERY IMPORTANT SLIDE THAT REALLY SHOWS THE IMPACT OF, UH, THE PROPERTY TAX CAP.
SO SINCE HITTING THE CAP, UH, THE, THE REVENUE AVOIDED OR REVENUE THAT WOULD'VE COME TO THE CITY, 1.83 BILLION SINCE WE HIT THE PROPERTY TAX CAP.
SO WHEN YOU LOOK IN FY 24 ALONE, THAT COST THE CITY ABOUT 347 MILLION.
UH, SO YEAH, THIS SLIDE REALLY REPRESENTS THE, IM THE FULL IMPACT OF THE PROPERTY TAX CAP SINCE WE HIT THAT CAP.
AGAIN, THAT'S 1.8 BILLION SINCE 2015.
SO A LITTLE BIT ON SALES TAX REVENUE.
UM, AGAIN, WE ARE SHOWING ABOUT A 3% DECREASE FROM THE 2023 ESTIMATES.
UM, EMPLOYMENT OF COURSE IS A KEY DRIVER.
UH, HISTORICALLY SALES TAX HAS RESPONDED IN AN IMMEDIATE MANNER TO CHANGES IN OUR EMPLOYMENT GROWTH AND DECLINE.
AND OF COURSE, THE ENERGY SECTOR IS A SIGNIFICANT, SIGNIFICANT CONTRIBUTION FOR THE HOUSTON'S ECONOMY.
AND OF COURSE, THERE'S STILL TURMOIL WITH RUSSIA AND, AND THE UKRAINE THAT ALL OF THAT HAS AN IMPACT.
UM, AND THEN FURTHERMORE, THE ECONOMISTS, UH, ADVISE ON AN ECONOMIC SLOWDOWN IN THE NEAR FUTURE, ASSUMING A MODEST RECESSION IN LATER PART FY 24.
UM, SO WE, WE HAVE BEEN SEEING DOUBLE DIGIT GROWTH EACH MONTH IN SALES TAX.
UH, BUT WE CANNOT ASSUME THAT THAT WILL CONTINUE.
AND THAT'S ONE OF THE REASONS WHY WE'RE TAKING A, A CONSERVATIVE APPROACH.
SO TO, FOR US TO TAKE THIS CONSERVATIVE APPROACH IS THE, THE BEST DECISION.
I MEAN, IF, IF THE IT CONTINUES TO GROW, THEN THAT WOULD JUST BE A BENEFIT TO OUR FUND BALANCE.
BUT IT'S VERY IMPORTANT THAT WE BE CONSERVATIVE WITH THAT PROJECTION.
AND AGAIN, YOU CAN SEE IN OUR SALES TAX, UH, JUST COMPARING THE BUDGET TO ACTUAL OVER THE YEARS, AND YOU CAN SEE WHAT REALLY STANDS OUT.
IF YOU LOOK AT 22, UM, IT CAME IN 117 MILLION HIGHER THAN WHAT WE BUDGETED.
AND THEN YOU LOOK AT 23 CAME IN 85 MILLION HIGHER THAN WHAT WE BUDGETED.
AND AGAIN, THAT WAS JUST COMING OUT OF THE PANDEMIC.
THERE WAS ALMOST NO WAY YOU COULD ACTUALLY PREDICT WHAT WAS GONNA HAPPEN WITH SALES TAX AND FOR IT TO HAPPEN FOR AS LONG AS IT HAS.
SO IT'S BEEN A HUGE BENEFIT TO THE CITY.
UM, BUT AGAIN, THAT JUST SHOWS THE, THE VOLATILITY AND UNCERTAINTY OF THE SALES TAX.
AND ON THE NEXT SLIDE, AGAIN, IT JUST KINDA SHOWS YOU, UM, FOR FY 23, UH, THE CONSERVATIVE BUDGET WE HAVE, YOU CAN SEE IN, IN RED SHOWS, UM, THE AMOUNT ABOVE, UH, THE MONTHLY BUDGET THAT WE ANTICIPATED, IF WE CAN GO TO THE NEXT SLIDE.
UM, SO IT JUST SHOWS YOU THE MONTHLY, UH, SALES TAX COLLECTION.
AND AGAIN, THROUGH MARCH, WE'VE EXCEEDED OUR BUDGET EACH MONTH IN OUR SALES TAX.
AND THEN, UH, SO WE HAVEN'T RECEIVED APRIL, MAY, AND JUNE AS OF YET, BUT WE ARE ESTIMATING, UH, AGAIN, THE MODEST GROWTH FOR THOSE MONTHS.
UH, AND THEN WE ANTICIPATE THAT IT WILL EXCEED, OF COURSE, OUR BUDGET.
SO AGAIN, IT'S IMPORTANT WITH THE SALES TAX THAT WE TRY AND REMAIN CONSERVATIVE 'CAUSE OF THE VOLATILITY.
AND AGAIN, IF IT COMES IN HIGHER, IT IS JUST A BENEFIT TO THE CITY.
OKAY, SO NOW LET'S LOOK A LITTLE BIT AT THE EXPENDITURES.
UH, YOU'LL SEE AT THE FY 24 BUDGET AT 2.9 BILLION IS ABOUT 119 MILLION HIGHER AND ABOUT 4.31% HIGHER THAN PRIOR YEAR.
AND PRIMARILY DRIVEN BY THE EMPLOYEE COMPENSATION.
I'VE TALKED ABOUT THE 3% FROM UNION AND POLICE, AND THE 6% PER FIRE, OUR PENSION COST AT 11.8 MILLION.
AGAIN, I TALKED ABOUT THAT TRANSFER TO MRR, WHICH IS ANOTHER INCREMENTAL 11 MILLION TO ADD TO THE NOW 42 MILLION THAT WE HAVE TO GO TOWARDS DEFERRED MAINTENANCE, THAT EP TRUST, THE 8.6 MILLION.
UM, AND THEN OUR SERVICE CHARGEBACK FUNDS, AGAIN, THOSE ARE ALL OF OUR, OUR IT, OUR FLEET, OUR ELECTRICITY COSTS.
UM, AND THEN OUR HEALTH BENEFITS, WHICH WE DO ESTIMATE GROWTH, UH, EVERY YEAR ON THAT.
AND THEN AGAIN, YOU'LL SEE A BIG DECREASE ON THE EXPENDITURE SIDE.
THE SAME EXPLANATION I GAVE ON THE, THE REVENUE WAS ATTACHED TO 1115 WAIVER, UH, IN AND OUT.
IT WAS NOT A, A CUT TO ANY DEPARTMENT, OR NOT A CUT TO THE HEALTH DEPARTMENT, BUT A CHANGE IN THE FUNDING MECHANISM FOR THAT PROGRAM WHERE GENERAL FUND NO LONGER
[00:25:01]
HAS TO DO THE MATCH.UM, AND AGAIN, YOU CAN SEE THERE, UH, 4.31% INCREASE ON THE GENERAL FUND, AND THAT JUST TELLS YOU ALL THE BREAKOUT.
UH, NEXT SLIDE KINDA SHOWS YOU, UH, AGAIN, THE SAME INFORMATION, BUT LOOKING AT A DIFFERENT WAY.
UM, SO THIS IS WHEN YOU INCLUDE DEBT.
PUBLIC SAFETY REPRESENTS ABOUT 57% OF THE OVERALL GENERAL FUND BUDGET.
UM, AND THEN WE HAVE SOME NEW BREAKOUTS.
WE SEPARATELY ELECTED OFFICIALS, YOU SEE PAY AS YOU GO, 123 MILLION ADMINISTRATIVE SERVICES.
BUT AGAIN, UH, PUBLIC SAFETY IS THE LINE SHARE OF THE, THE GENERAL FUND BUDGET AT 57%.
SO AGAIN, IT'S ALSO IMPORTANT TO LOOK AT, UH, A BREAKOUT OF THE BUDGET BY PERSONNEL.
UM, SO OF THAT 2.8 MILLION OVER 60, 61% IS TIED TO PERSONNEL.
AND THEN WHEN YOU LOOK AT THE PERSONNEL COST, UM, 76% OF ALL THE PERSONNEL COSTS IS TIED TO CLASSIFIED PERSONNEL.
SO POLICE AND FIRE, WHICH MEANS ONLY 24% IS TIED TO CIVILIANS.
AND THEN OF COURSE, WHEN YOU LOOK AT THE OTHER, UM, THAT'S BROKEN OUT BY OTHER SERVICES AND CHARGES ALL OF YOUR CONTRACTS, SUPPLIES AND SERVICES, AND THEN OUR ENERGY COSTS AND THEN DEBT.
BUT AGAIN, UM, THE BUDGET IS MAINLY PERSONNEL.
SO I ALREADY TOUCHED BASE ON THIS A LITTLE BIT.
UM, AS YOU CAN SEE, THE PENSION COSTS OVER TIME, AND YOU CAN SEE THAT YELLOW HIGHLIGHTED BAR THAT SHOWS WHAT ADDITIONAL AMOUNT OF FUNDING THE CITY WOULD, WOULD'VE HAD TO CONTRIBUTE IF IT HAD NOT BEEN FOR PENSION REFORM.
AND THAT'S WHERE YOU SEE IT BEING ADDITIONAL 515 MILLION IN 2018.
UM, SO ALTOGETHER IT WOULD BE 1.7 BILLION.
AND NEEDLESS TO SAY, THAT WOULD HAVE A DEVASTATING IMPACT ON THE OPERATING BUDGET.
AND THAT'S WHY I SAY IT'S IMPORTANT WHEN WE TALK ABOUT PENSION REFORM, THAT WE HIGHLIGHT THE IMPACT TO THE OPERATING BUDGET THAT PENSION REFORM HAD.
THE LIABILITIES WAS FANTASTIC, BUT THE OPERATING BUDGET AS WELL.
UM, 'CAUSE WE COULD NOT COVER 515 MILLION IN ONE YEAR.
UH, SO AGAIN, UH, IF NOT FOR PENSION REFORM, WE WOULD BE IN A LOT OF TROUBLE.
UH, LOOKING AT THE GENERAL FUND ENDING FUND BALANCE.
SO AGAIN, LOOKING AT FY 24, WE'RE LOOKING AT ABOUT 16.59%.
UH, 23, IT'S GONE UP TO 17.21%.
SO YOU CAN SEE WE, WE ARE WORKING WITH A VERY, VERY HEALTHY FUND BALANCE.
AND LIKE DAMIR SAID, FOR THE PROPOSED BUDGET AT 16.6%, THAT IS ONE OF THE STRONGEST FUND BALANCE IN RECENT HISTORY FOR A PROPOSED BUDGET.
UM, SO IN TOTAL, AGAIN, 2.4 BILLION FOR MAINTENANCE AND OPERATION WHEN YOU EXCLUDE DEBT.
UH, SO AGAIN, WELL ABOVE THE 7.5%, 220 MILLION ABOVE.
UH, SO VERY, VERY STRONG FUND BALANCE.
OKAY, SO NOW LET'S LOOK AT SOME OF THE OUT YEAR ELEMENTS.
SO IF YOU GO TO SLIDE 34, SO WHAT I'M GONNA SHOW IS, I GUESS, PROJECTED BUDGET GAP RANGE BASED ON CONSERVATIVE OPTIMISTIC REVENUE GROWTH.
IT WILL NOT INCLUDE ANY ONE TIME LAND SALES.
UH, THE, THE, THE REVENUE PROJECTION PROPERTY TAX WILL BE BASED ON THE PROP ONE H LIMITATIONS, UH, PENSION ASSUMPTIONS BASED ON MIDPOINT OF THE CORRIDOR EXPENDITURES INCLUDE LEGAL MANDATE, STAFFING FACILITIES, CONTRACTUAL ESCALATORS.
SO ON THE NEXT SLIDE, ALSO ON THE REVENUE.
SO AGAIN, I'M GONNA SHOW YOU A KIND OF A LOW AND HIGH, BUT ON THE REVENUE, UH, WE WE'RE GONNA TAKE A LOOK AT THE PROPERTY TAX, UH, YOU KNOW, AT A RANGE, ASSUMING YOU KNOW, THE CPI, UM, POPULATION, IF THERE ARE SOME CHANGES THERE, SALES TAX, AGAIN, WE'RE GONNA LOOK AT A RANGE OF WHERE THE SALES TAX COULD BE AS A LOW, WHERE IT COULD BE AS A HIGH FRANCHISE FEES.
YOU'LL NOTICE THE LOW, THEY'RE BOTH NEGATIVE.
AGAIN, FRANCHISE FEES CONTINUES TO DE TO DECREASE.
SO WE'RE GONNA SEE HOW LOW WE THINK IT'LL DECREASE VERSUS MAYBE NOT AS MUCH, BUT STILL, UH, A DECREASE.
OTHER REVENUE, UH, AGAIN, WE, WE TAKE A LOOK AT HISTORICAL TRENDS AND SEE WHERE WE THINK A LOW COULD BE VERSUS WHERE A HIGH COULD BE.
AND WE DO NOT INCLUDE ANY, UM, ONE TIME LAND SALES.
AND THEN ON THE EXPENDITURES, UH, AGAIN, WE LOOK AT SOME OF THE PERSONNEL SIDE.
WE'LL BE BASED IT ON THE, THE KNOWN PAY INCREASES.
SO AGAIN, THIS IS THE LAST YEAR FOR THE FIRE, 6% LAST YEAR FOR THE MUNICIPAL, 3% POLICE WILL HAVE AT 3.5% INCREASE NEXT YEAR.
AND THEN BEYOND THAT, THAT IS TO BE DETERMINED.
UM, AND THEN OF COURSE YOU LOOK AT THE PENSION, UM, OF COURSE IT'S BASED ON THE MIDPOINT TO CORRIDOR AND THE OUT YEARS.
WE DO TAKE A LOOK AT THE, THE GROWTH FOR HEALTH BENEFITS, UH, AND A RANGE FROM 4% TO 5%, AND THEN WHAT THE DEBT PAYMENTS WOULD BE.
SO WHEN YOU LOOK AT THAT ON THE NEXT SLIDE, YOU KIND OF GET A RANGE OF WHERE A POTENTIAL GAP COULD BE.
UM, NOW AS THE MAYOR SAID FOR FY 24, WE COULD HAVE DRAWN DOWN THE FUND BALANCE, UM, TO ADDRESS THE, THE, THE GAP WITHOUT ARPA.
UM, AND SO WE WOULD, WE HAD ENOUGH TO ACTUALLY DO THAT.
UM, SO IN, IN 25, BASED ON THE STRENGTH OF THE FUND BALANCE, WHETHER IT'S THE LOW OR THE HIGH, THE FUND BALANCE COULD COVER THAT.
UM, SO WHEN YOU LOOK OUT IN 26, 27, 28, YOU'LL NOTICE THE RANGE.
WE'RE LOOKING AT ANYWHERE BETWEEN 112 FOR 26 UP TO 181 MILLION POTENTIAL GAP.
[00:30:01]
AND AGAIN, THE THE ANSWER MAY BE SOMEWHERE IN THE MIDDLE OF THERE.UM, LIKE I SAID, SALES TAX IS, UH, VERY UNCERTAIN.
SO WE HAVE TO ASSUME SEVERAL, YOU KNOW, MAKE ASSUMPTIONS ON THAT, ON THE EXPENSES.
UM, IT'S UNCERTAIN EXACTLY LIKE I SAID, THE, THE PAY RAISES END THIS YEAR THAT HAVE TO BE DISCUSSIONS HAD ON WHAT, WHAT WE SHOULD ASSUME IN THOSE OUT YEARS.
UH, SO, AND AGAIN, THAT IS, IS, IT'S A RANGE.
UM, SO WHEN YOU LOOK AT 27, YOU LOOKING FROM 1 0 7 COULD BE THE LOW UP TO 200 MILLION.
AND AGAIN, 28, UH, FROM 109 TO 244 MILLION, AGAIN, A RANGE.
IT'LL FALL SOMEWHERE IN BETWEEN.
AND THE NUMBERS CHANGE AS WE GET MORE INFORMATION, ESPECIALLY LIKE I SAY WITH, YOU KNOW, THE SALES TAX, UM, THE PROPERTY TAX.
UH, WE, WE DO BUDGET AT THE CAP, BUT THERE ARE OTHER IM IMPACT, YOU KNOW, WITH THE CPI, UM, AND WITH, UH, POPULATION.
UM, SO THERE, THAT'S KIND OF THE RANGE WE'RE LOOKING AT.
AND LIKE I SAID, IT'S GONNA FALL SOMEWHERE IN THERE.
SO, UH, IN ADDRESSING THE GAP, WHAT HAVE WE DONE? SO I'VE HEARD, UM, YOU KNOW, MANY TIMES BEFORE FROM COUNCIL, YOU KNOW, WE HAD THE LONG RANGE FINANCIAL PLAN, WHAT HAVE WE DONE ANYTHING WITH IT? UM, SO HERE I DO WANNA HIGHLIGHT SOME OF THE THINGS THAT'S MENTIONED IN THE LONG RANGE PLAN THAT WE'VE ACTUALLY DONE.
UH, PENSION REFORM IS ONE OF THE TOP THINGS THAT THAT'S BEEN DONE.
OPE REFORM WAS MENTIONED AS ONE OF THE TOP ISSUES THAT'S BEEN DONE.
UM, WE HAVE BEEN WORKING WITH THE COUNTY.
WE HAVE SOME SHARED SERVICES, THE JOINT PROCESSING CENTER, AND THERE'S STILL OTHER OPPORTUNITIES FOR THAT.
BUT WE, WE HAVE DONE THAT HIRING CONTROL THAT WAS MENTIONED IN THE LONG RANGE PLAN.
UM, WE HAVE THE MAYOR'S EFFICIENCY PROCESS FOR HIRING THAT'S BEEN DONE.
UM, IMPLEMENT CLAWBACK PROVISIONS FOR CERTAIN SPECIAL REVENUE FUNDS WAS MENTIONED.
UH, WE BROUGHT THAT TO COUNCIL.
UM, HEALTH BENEFIT UPDATES, NEGOTIATED CITYWIDE MEDICAL PRESCRIPTION BENEFIT PLANS, IMPLEMENTED SPOUSAL SURCHARGE PERFORMED DEPENDENT ELIG ELIGIBILITY AUDIT THAT'S BEEN DONE, OUTCOME-BASED BUDGET, WHAT'S IN THERE, THAT'S BEEN DONE.
AND WE'LL CONTINUE TO IMPROVE THAT AS WE GO.
SO, UM, YES, WE, WE, WE DO UTILIZE THAT LONG RANGE FINANCIAL PLAN.
WE HAVE IMPLEMENTED THINGS AND WE'LL CONTINUE TO LOOK FOR OPPORTUNITIES IN THERE.
UM, BUT I JUST WANTED TO BE CLEAR THAT, YOU KNOW, THAT LONG RANGE PLAN WAS JUST NOT SOMETHING SITTING ON THE SHELF.
WE HAVE BEEN ACTIVELY, UM, IMPLEMENTING.
AND I KNOW SOMETIMES THE, THE, THE QUESTION WOULD BE, WELL, CAN YOU SHOW ME HOW MUCH, UH, THAT PART IS A CHALLENGE BECAUSE A LOT OF THESE CHANGES ARE INCORPORATED INTO OUR OVERALL, AND SOME, SOMETIMES IT'S HARD TO PULL OUT THE REVENUE THAT'S TIED DIRECTLY TO THAT, BUT WE HAVE DONE, AND WE'LL CONTINUE TO WORK ON ADDRESSING THINGS IN THE LONG RANGE FINANCIAL PLAN AND ADDRESSING THE GAP.
SO WHAT'S NEXT? SO AGAIN, UH, WE DO HAVE LIMITATIONS ON OUR REVENUE, WHICH IS OUR BIGGEST ISSUE HERE IN THE CITY.
AND THEN OF COURSE, ON TOP OF THAT, THE STATE CAP, AS I MENTIONED EARLIER, 1.8 BILLION IN REVENUE SINCE 2015 AND HITTING THE CAP.
SO IT HAS HAD A TREMENDOUS IMPACT ON OUR ABILITY TO EXPAND SERVICES, AND IT'S A STRUGGLE TO ALMOST PROVIDE SERVICES GIVEN THAT.
SO WE'VE BEEN WORKING VERY HARD UNDER EVEN WITH THAT CAP TO, TO, TO PROVIDE THE SERVICES WE'VE BEEN PROVIDING.
UM, AND THEN OF COURSE, LIKE I SAID, POLICE AND FIRE.
WHEN YOU TAKE OUT DEBT, POLICE AND FIRE MAKE UP 66% OF THE BUDGET.
UM, SO IF YOU IMAGINE IF, IF, YOU KNOW, IF SOMEONE SAYS, WELL, WHY HAVEN'T YOU CUT OR CUT? WELL, WE'VE BEEN CUTTING SINCE, I DON'T KNOW WHAT, 2000 10, 11, 12.
WE, WE MAKE CUTS EVERY YEAR JUST ABOUT THE PAST COUPLE YEARS, YOU KNOW, DUE TO THE PANDEMIC THAT WE, WE HAVEN'T CUT BECAUSE WE NEEDED TO RESPOND TO THE NEED OF THE CITIZENS WITH THE INCREASE IN CRIME.
UM, AND, YOU KNOW, WITH SOLID WASTE.
UH, BUT WHEN YOU LOOK AT A BUDGET THAT IS 66%, UH, POLICE AND FIRE, UM, THERE'S NO WAY THAT YOU CAN CUT ALL THE OTHER DEPARTMENTS AND YOU STILL BE LEFT WITH, WITH THE PROBLEM.
SO THE REVENUE CAP HAS REALLY HAD A MAJOR IMPACT ON OUR OPERATIONS.
SO IN THE SHORT TERM, UH, BUILD AND PRESERVE FUND BALANCE, UH, THAT'S BEEN A, A KEY, UH, POINT FOR THE MAYOR, UH, IS THAT WE REALLY WORK ON BUILDING UP THAT FUND BALANCE.
AND AGAIN, THAT'S NOT SOMETHING THAT HAPPENS JUST WHEN WE DO THE BUDGET.
AS I, WHEN I COME AND PRESENT THE MONTHLY FINANCIAL REPORT, THAT IS A HIGH FOCUS, UM, TO BUILD AND PRESERVE THE FUND BALANCE, UH, CONTINUE HIRING CONTROL.
UM, NOW, RIGHT NOW WE'RE LOOKING AT TRYING TO FILL POSITIONS.
UH, WE, WE WANT TO BRING IN PEOPLE.
WE'RE TRYING TO ATTRACT PEOPLE.
UH, WE, WE NEED PEOPLE IN TO KEEP UP WITH THE, THE DEMAND, UM, BUT CONTINUE TO LOOK FOR EFFICIENCIES AND COST CUTTING OPPORTUNITIES, UM, AND IMPORTANT, DEVELOP NEW REVENUE SOURCES.
UM, REALLY THAT'S THE ONLY WAY WE'RE GONNA BE ABLE TO START ADDRESSING SOME OF THE, THE OPERATIONAL STRUCTURAL BALANCES.
WE'RE GONNA NEED NEW REVENUE SOURCES.
IT'S NOT WHERE DO WE CUT, IT'S HOW DO WE BRING IN MORE REVENUE SOURCES.
UM, AND IN LONG TERM, AS I MENTIONED, WE'RE GONNA CONTINUE TO IMPLEMENT THE PFM RECOMMENDATIONS THAT ARE SUPPORTED BY THE MAR AND CITY COUNCIL.
UM, I SHOWED YOU WHAT WE'VE DONE.
WE'RE GOING TO CONTINUE TO DO THAT, CONTINUE TO LOOK FOR EFFICIENCIES AND WAYS THAT WE CAN IMPROVE, BUT WE REALLY NEED TO FOCUS ON HOW
[00:35:01]
DO WE GET MORE, UH, REVENUE SOURCES INTO THE CITY.UM, SO WITH THAT, I BELIEVE THAT CONCLUDES MY PRESENTATION, AND I'LL TAKE ANY QUESTIONS THAT YOU HAVE.
I'D LIKE TO WELCOME A FEW COUNCIL MEMBERS THAT RECENTLY JOINED US.
ROBERT GALLEGOS FROM DISTRICT I COUNCIL MEMBER LETITIA PLUMMER, POSITION FOUR.
AND COUNCIL MEMBER SALLY ALCO, POSITION FIVE.
FIRST QUESTION COMES FROM COUNCIL MEMBER TIFFANY D. THOMAS.
I WILL TELL YOU AFTER THE OUTLINE YESTERDAY, I'M READY FOR THE VOTES.
I DON'T REALLY KNOW IF I WANT TO GO THROUGH ALL THESE BUDGET HEARINGS, BUT I DO WANNA RAISE A COUPLE OF QUESTIONS JUST, UM, FOR THE RECORD AND FOR YOU TO EXPLAIN.
SO YOU TALKED ABOUT THE 42 MILLION DEFERRED MAINTENANCE, WHICH IS GREAT.
UM, CAN YOU TALK ABOUT THAT IN COMPARISON TO THE BOND, UH, REFERENDUM WE JUST HAD THIS PAST NOVEMBER FOR CITY FACILITIES AND, UM, THE TWO DESIGNATIONS ON WHAT THOSE, UM, PROJECTS WERE FOR AND WHAT THE 42 MILLION DEFERRED MAINTENANCE IS FOR.
AND THEN MY SECOND QUESTION, UM, SEPARATE OF THAT IS, UM, FOR THE PROPERTY TAX RELIEF THAT YOU MENTIONED, ARE YOU KEEPING IN CONSIDERATION WHAT'S HAPPENING IN THE LEGISLATURE AROUND THE PROPERTY TAX RELIEF AT THE STATE LEVEL? AND ARE WE, ARE WE PREPARING FOR WHATEVER MAY COME FROM THAT, HOW WE ADJUST OUR BUDGET? YEAH, SO EVERY YEAR THAT WE, WE, WE DO OUR PROPERTY TAX DURING TRUTH AND TAXATION, WE HAVE TO NOT ONLY MONITOR OUR CAP, WE ALSO HAVE TO MONITOR THE STATE CAP TO MAKE SURE WE ARE IN COMPLIANCE.
UH, BUT WE, WE HAVE TO LOOK AT TWO, TWO CAPS.
SO YEAH, WE, EVERY YEAR THAT IS A FOCUS WHEN WE DO OUR PROPERTY TAX CAP.
UM, SO YEAH, SO WE WE'RE CONSTANTLY MONITORING, UM, EVEN AT THE LEGISLATION, ANY OTHER POTENTIAL CHANGES THAT COULD COME DOWN.
BUT WE HAVE TO LOOK AT TWO CAPS.
AND I, I MEAN, I KNOW THERE'S A BILL ALREADY IN, I MEAN, IN PLAY IN ORDER TO PROVIDE HOMEOWNERS MORE RELIEF.
AND I KNOW THERE'S CONTROVERSY AROUND THAT, BUT IF THERE'S A FINANCIAL IMPLICATION TO THAT, I I, I WOULD BE INTERESTED TO KNOW WHAT THAT IS.
AND THEN FOR THE PROPERTY, UH, THE REVENUE CAP THAT YOU MENTIONED IN THE BILLION DOLLARS THAT WE'RE MISSING OUT, IS THAT IN COMPARISON TO THE STATE CAP, OR IS THAT IF WE REMOVE THE CAP TOTAL? YEAH, THAT, THAT IS, THAT 1.8 BILLION IS, IS IN REFERENCE TO THE CITY, THE LOCAL CAP.
RIGHT? SO IF WE REMOVE THAT, AND IF WE DIDN'T, UM, INCREASE TO THE STATE CAP, THAT'S ONE, THAT'S THE BILLION.
BUT IF WE WENT TO THE STATE CAP JUST TO INCREASE TO, TO MIRROR THAT, WHAT WOULD BE, WHAT'S THE DIFFERENCE WITH THAT? IT, IT WOULD DEPEND.
AND THAT'S WHY I SAY WE HAVE TO, WHEN WE, DURING TRUTH AND TAXATION, WE HAVE TO LOOK EVERY 'CAUSE NOW, YOU KNOW, IT, IT, WE WE'RE PROBABLY GETTING CLOSE TO THAT STATE CAP.
SO IF WE REMOVE, IF WE WERE TO MOVE THE CITY'S CAP, THEN WE WOULD HAVE TO COMPLY WITH THE STATE CAP.
IT COULD BE, WE CAN GET A LITTLE MORE REVENUE.
I THINK WHEN WE LOOKED AT IT THIS PAST YEAR, I DON'T KNOW, I DON'T KNOW IF IT WAS ABOUT 40 MILLION MORE WE COULD HAVE GOTTEN.
UM, BUT THAT IS A CASE BY CASE A YEAR BY YEAR WE HAVE TO LOOK AT IT.
'CAUSE IT'S NOT A GUARANTEE THAT WE WOULD AUTOMATICALLY JUST GET MORE BECAUSE IT'S A STATE CAP.
AND I, AND I'M ONLY RAISING THIS POINT BECAUSE, UM, DURING POPOFF, I BELIEVE WHEN COUNCIL MEMBER GALLEGOS HAD HAD RAISED IT, UM, JUST AS WE COMMUNICATE TO RESIDENTS ABOUT THE IMPACT OF THE BUDGET, JUST IN LAYMAN'S TERMS, FOR THEM TO ENCOURAGE THEM TO GET SERIOUS ABOUT ENGAGING AT THE STATE LEVEL.
'CAUSE OFTENTIMES, YOU KNOW, OUR HANDS ARE TIED BECAUSE OF RESOURCES, BUT IF THEY ARE INTERESTED AND, UH, MOTIVATED, UH, THEY WILL HAVE THE LANGUAGE AND UNDERSTAND THE IMPLICATIONS WITH THESE CAPS AND WHAT THIS MEANS FOR EVERYDAY CITY SERVICES.
SO JUST TO HAVE THAT CONVERSATION, IF WE HAD SOME CONTEXT AROUND THAT, THAT WOULD BE HELPFUL.
AND I GET IT, IT'S A FORMULA AND IT DOESN'T ALWAYS MEAN THAT WE'RE GOING TO GET AN INCREASE, UH, BUT JUST SO PEOPLE ARE FAMILIAR WITH, UH, UH, THE NUANCE OF THE TAX, THE REVENUE CAP.
AND I DID GET A NOTE JUST TO CLARIFY ON, UH, SO WHAT'S THE, THE BILL AT THE STATE RIGHT NOW IS, IS RELATED TO THE ISDS, SO IT'LL HAVE MORE OF AN IMPACT ON THE SCHOOL DISTRICTS AND NOT THE CITY.
AND THEN YOUR OTHER QUESTION ON, UH, ON THE DEFERRED MAINTENANCE.
SO YEAH, THAT, THAT WE DID ACCOUNT FOR SOME, SOME DEFERRED MAINTENANCE IN, IN THE BOND.
UM, SO THIS DEFERRED MAINTENANCE IS WHAT'S INCLUDED IN OUR OPERATING BUDGET.
UM, AND THAT'S AGAIN, PER OUR FINANCIAL POLICIES, WE GROW THAT EVERY OTHER YEAR.
UM, BUT THAT IS JUST TO TAKE CARE OF, UH, THE EXISTING FACILITIES AND TRY, SO THAT'S THE OPERATING BUDGET, MAINTENANCE AND OPERATIONS.
COUNCIL MEMBER SALLY ALCORN, COUNCIL MEMBER THOMAS COVERED SOME OF WHAT I WANTED TO COVER, BUT ON SLIDE 24 ON THE, THE PROPERTY TAX REVENUE CAP, THAT 1.8 BILLION I THINK I HEARD YOU SAY IS YES.
IT'S JUST TOTALLY NOT, NOT TAKING INTO CONSIDERATION THE STATE CAP AT ALL.
AND, AND IT'S MY UNDERSTANDING, LIKE I KNOW EIGHT OUT OF NINE YEARS WE'VE, WE'VE ACTUALLY HAD TO LOWER TAXES, BUT ONE OF THOSE YEARS, THE STATE CAP WAS MORE FAVORABLE TO THE CITY? OR, OR WAS, WAS, UM, WE,
[00:40:01]
IT, WELL, I DON'T KNOW.I THINK THE, THE STATE CAP, HAVE WE EVER USED THE STATE CAP INSTEAD? NO, WE HAVEN'T.
BUT IT'S NOT A GUARANTEE, ESPECIALLY IF INFLATION KEEPS GOING UP, IT'S NOT A GUARANTEE THAT THE STATE CAP IS YEAH, IT'S NOT GUARANTEE THE STATE CAP WILL ALWAYS BE HIGHER THAN OUR CAP.
AND SO, UM, YOU KNOW, I'M EXCITED ABOUT THE OPE TRUST, AS I KNOW A LOT OF PEOPLE ARE MAYOR PRO TE.
UM, IF YOU CAN JUST FOR A MINUTE, LET'S JUST TELL ME HOW IT GETS SET UP AND, AND WHAT, WHAT HAPPENS NOW THAT THE MONEY'S OKAY.
SO WHAT WHAT'S GONNA HAPPEN IS WE, WE WILL BRING AN ITEM TO COUNCIL, UM, PROBABLY THE JUNE OR JULY.
SO WE'RE GONNA HAVE A, A THIRD PARTY THAT MANAGES THE TRUST FOR US.
SO ONCE WE GET THERE, WE'LL GET GUIDANCE ON HOW TO SET IT UP, WHAT FUND TO SET IT UP, AND ALL OF THAT.
SO ONCE WE DO, THEN, LIKE I SAID, IT'LL BE, UM, IT'LL BE A STARTING OUT CONTRIBUTION OF 10 MILLION, AND THEN WE EXPECT THAT TO ESCALATE OVER, UM, TWO TO 3 MILLION EACH YEAR, UM, UNTIL IT, UNTIL WE HAVE ENOUGH IN THERE TO WHERE WE CAN ACTUALLY START MAKING PAYMENTS OUT OF THERE.
AND THEN WE ALSO ASSUME, YOU KNOW, THE, THE RATE OF RETURN.
UM, SO IT'S NOT GONNA BE IMMEDIATELY 7%, UM, UNTIL WE CAN SEE, YOU KNOW, SOME SUPPORT FOR THAT, THAT TRUST FUND.
AND THEN WE WILL ASSUME A 7% RATE OF RETURN.
UM, AND AGAIN, AT SOME POINT IT, IT'LL, ONCE IT LEVELS OUT, THEN WHEN WE HAVE ENOUGH TO ACTUALLY PAY FOR OUR, OUR LIABILITIES OUT DIRECTLY FROM THE TRUST FUND.
AND AGAIN, THAT'S GONNA SHOW THAT DECREASE IN THAT LIABILITY GOING FROM WHERE WE ARE NOW OUTTA 4.5 TO ABOUT 1.1.
STAFF FROM COUNCIL MEMBER MIKE KNOX'S OFFICE.
SLIDE 38, UM, ADDRESSING THE GAP.
ONE OF THE BULLETS TALKS ABOUT EMS FEE ADJUSTMENT, INCREASED TRANSPORT FEE, AND CREATING NEW FEES.
THAT, THAT HAPPENED, I WANNA SAY LAST YEAR IT WAS BROUGHT TO COUNCIL.
UH, SO THE, THE EMS FEE, WE WERE NOT, UH, WE WERE NOT RECOUPING THE COST THAT IT ACTUALLY WAS FOR US TO DO THAT.
SO WE BROUGHT TO COUNCIL AND, UM, AND INCREASE THAT FEE.
THE, THE NEW FEE, I'LL HAVE TO GO BACK AND LOOK.
I, I FORGET EXACTLY WHAT IT WAS, BUT IT, IT IS IN THAT ORDINANCE.
IT WAS A NEW FEE, UM, THAT AGAIN ON THAT SAME ORDINANCE THAT WAS PASSED.
BUT I CAN, WE CAN GET YOU EXACTLY WHAT THAT WAS.
SO DIRECTOR JONES, I WANT TO GO TO SLIDE 37.
SO CAN WHOEVER'S OPERATING THE SLIDES GO TO 37? OKAY.
SO GIVE ME SOME MORE COMMENTARY ON THIS, BECAUSE WHAT I'M LOOKING FOR IS WHERE DOES FY 25, 26, 27, 28.
SO WALK ME THROUGH THIS AGAIN.
SO WHAT WE DID HERE FOR THE RANGE, WHEN YOU LOOK AT, WE, WE LOOK AT OUR PROPERTY TAX AND SAY, OKAY, WE, WE KNOW WE'RE AT THE CAP, BUT THERE THE SOME CHANGES IN THERE COULD BE, UH, THE, THE C-P-I-C-P-I, IF IT CAN GO UP OR GO DOWN, THAT WILL IMPACT THE NUMBER, WE WOULD ASSUME OUR POPULATION.
THEN WE LOOK AT SALES TAX AND SAY, OKAY, IF MY SALES TAX IS GONNA GROW BY 3% OR IS IT GONNA GROW BY 1%? UM, SO WE, WE, WE DO THAT TO SEE WHAT OUR, OUR BEST CASE OR WORST CASE SCENARIO IS FOR THE REVENUE.
SO WHEN YOU LOOK AT, FOR EXAMPLE, IN, IN FISCAL YEAR 25, WE WOULD ASSUME, UH, BASED ON THAT ASSUMPTION THAT THE WORST CASE WOULD BE 168 MILLION.
UM, AND AGAIN, AS THE MAYOR STATED IN 25, BASED ON THE STRENGTH OF THE FUND BALANCE THAT WE HAVE, WHAT, EVEN WITH THE WORST CASE SCENARIO, WE HAVE ENOUGH AND FUND BALANCE BUILT UP THAT COULD ADDRESS THAT GAP.
WE'RE, WE'RE SITTING ON 220 MILLION NOW ABOVE, AND I DO ANTICIPATE THAT TO GROW.
UM, BUT WHEN WE, WHEN, WHEN YOU LOOK AT THE DIFFERENCE BETWEEN THE RANGES, JUST, UH, ON THE ASSUMPTIONS I I USE FOR THE ACTUAL REVENUE GROWTH AND WHERE WE THINK ON THE EXPENDITURE, THE POSSIBILITIES ON THE EXPENDITURE SIDE.
SO IN 25 WE HAVE A, LET'S SAY THE WORST CASE SCENARIO, $170 MILLION GAP, RIGHT? BUT WE HAVE $220 MILLION IN FUND BALANCE, CORRECT.
SO WE'RE STILL IN GREAT SHAPE.
WE HADN'T SPENT ANY, THE REMAINING COUNCIL MEMBERS HAVEN'T SPENT ANY OF THE FUND BALANCE.
SO WE HAVE UNTIL THIS BUDGET SESSION.
SO THAT'S A KEY OF SOME DIFFERENT AMENDMENTS TO COME, I ASSUME.
SO WE HAVE, UM, WE'RE IN GOOD, GOOD SHAPE BECAUSE WE HAVE ROUGHLY 180 MILLION GAP WITH TWO 20 IN FUND BALANCE.
BUT JUST, JUST TO BE CLEAR THOUGH, BEFORE, YEAH.
[00:45:01]
SO CUSTOMER PAUL IS RIGHT.SO WHEN IN 25 IF WE DRAW DOWN THAT 170 MILLION, YOU DON'T HAVE THAT MUCH IN FUND BALANCE.
SO NOW YOU HAVE TO ADDRESS THIS GAP.
YOU DON'T HAVE FUND BALANCE TO, UH, COMPLETELY COVER THE GAP.
SO ONCE YOU USE IT, THEN YOU'VE USED IT
SO FY 26 LOOKS LIKE WHEN WE START TO HAVE ISSUES.
I MEAN, FY 26 WILL DEFINITELY BE MORE OF A CHALLENGE.
I DON'T SEE ANY OTHER COUNCIL MEMBERS IN Q OH, I'M SORRY.
THANK YOU, DIRECTOR FOR A GREAT PRESENTATION.
I KNOW, UH, THAT THIS MORNING AT COUNCIL, THE MAYOR DID MENTION THAT H HP, AND I KNOW HPD IS GONNA BE PRESENTING LATER ON THIS AFTERNOON.
SO, BUT, BUT, BUT I'M JUST ASKING, UM, UH, I, I KNOW THAT, UH, THE MAYOR MENTIONED EARLIER TODAY AFTER COUNCIL OR DURING COUNCIL SESSION, UH, THAT THE, UH, HPD, THEIR BUDGET INCREASED TO A BILLION DOLLARS.
SO MY QUESTION IS THE INCREASE, WAS THAT TO PAY THEIR 3% PAY RAISE, OR DOES THAT INCLUDE THE 3% PAY RAISE PLUS EQUIPMENT AND OTHER THINGS THAT THEY MAY NEED TO PURCHASE? IT'S MAINLY 3%, BECAUSE LAST YEAR THEY WERE ALREADY AT 980 OR 90 MILLION.
SO WHEN YOU FACTOR IN THE COST FOR THE PAY RAISES, THEN YOU GET THE, YOU GET TO A BILLION.
SO IT'S, IT'S PRIMARILY PAY RAISES.
ANY OTHER QUESTIONS FROM COUNCIL MEMBERS? SEEING NONE.
AND NOW WE'LL TAKE QUESTIONS FROM THE PUBLIC.
SO THE FIRST PATIENT WE HAVE, UH, MR. DOUG SMITH.
DOUG, DOUG WASN'T FEELING WELL, SO HE WAS HERE EARLIER, BUT HE LET ME KNOW THAT HE WAS NOT FEELING WELL.
SO, UH, HE MUST REALLY NOT BE FEELING WELL IF DOUG SMITH MISSES HIM.
MEANING LIKE THIS MS. DIANA DAVILA DAVILA RIGHT HERE? YES, MA'AM.
UH, FIRST I JUST WANNA SAY THANK YOU TO ALL OF OUR CITY STAFF THAT WORK HARD TO MAKE THIS BUDGET PRESENTATION.
REALLY APPRECIATE YOU HELPING US RUN OUR BEAUTIFUL CITY.
UM, MY FIRST QUESTION IS, HOW COME COUNCIL MEMBERS ARE ABLE TO PARTICIPATE VIRTUALLY, BUT NOT, UH, RESIDENTS? THAT WAS MY DECISION AND MY DECISION ALONE.
AND IT'S BECAUSE WE'VE DONE THAT, UH, A NUMBER OF TIMES AND WE END UP HAVING THREE HOUR PRESENTATIONS WHEN WE ALLOCATE IT AN HOUR, AND IT JUST CREATES A GRAND MESS.
SO PEOPLE THAT A CONCERN LIKE YOU THAT WANT TO COME ADDRESSES, WE ALWAYS ASK THEM TO FUNNEL QUESTIONS THROUGH THEIR COUNCIL MEMBERS.
SO IF ANYONE ONLINE IS WATCHING AND LISTENING, IF THEY WANNA FUNNEL A QUESTION THROUGH THEIR COUNCIL MEMBER OR TO ME, UH, WE WILL ASK THAT AND WE WILL GET IT ANSWERED.
MY NEXT QUESTION IS, WHAT DISTRICT HAD THE HIGHEST SHARE OF RESPONDENTS TO THE BUDGET SURVEY? C COUNCIL MEMBER, UH, DISTRICT C, WHICH HAS THE MOST RESIDENTS.
AND WHAT WAS THE DISTRICT'S BIGGEST PRIORITY? DISTRICT C.
YEAH, I'LL LOOK TO THE COUNCIL MEMBER STAFF FROM DISTRICT CI DO FOLLOW UP.
I CAN FOLLOW UP WITH YOU DIRECTLY, I JUST WANNA MAKE SURE I GET YOU ACCURATE INFORMATION.
SO IT WAS SERVICE AND INFRASTRUCTURE.
UM, SO WHAT PRIORITY HAS THE LOWEST RATE OF PERFORMANCE IN THE SURVEY? WHAT WAS OVERALL, UM, OVERALL, I'M SORRY.
I KNOW WE, WE DID A QUESTION WHERE WE RANK, UH, HOW THE MAYOR WAS DOING, UH, HOW THE CITIZENS THOUGHT THE MAYOR WAS DOING BASED ON PRIORITIES.
WHICH ONE, UM, WHAT PRIORITY HAD THE LOWEST RATE OF PERFORMANCE? IS MY QUESTION IN DISTRICT C SPECIFIC? NO.
OVERALL, AND THIS IS A BUDGET MEETING.
IT'S NOT A MAYOR'S PERFORMANCE MEETING.
I DON'T KNOW THE ANSWER TO THAT QUESTION.
I THOUGHT YOU WOULD LOOK AT YES, MA'AM.
[00:50:01]
WAS, UM, SEE MAINTAINING A HIGH, UH, FUND BALANCE LIMITS THE AMOUNT WE'RE ABLE TO SPEND ON CITY SERVICES.AND I UNDERSTAND THAT THIS IS NECESSARY DUE TO FEMA'S NEW POLICY ON REIMBURSING CITIES RATHER THAN PAYING UPFRONT FOR DISASTER RECOVERY.
AND I WAS WANTING TO KNOW, IS THE CITY ADVOCATING FOR A CHANGE IN THIS POLICY? AND IF SO, HOW CAN COMMUNITY MEMBERS SUPPORT THIS EFFORT? SO I DON'T THINK THE CHI CITIES ASKING FOR A CHANGE IN FUND BALANCE, IS THAT WHAT YOU'RE ASKING? LOCATION, UH, DIRECT ALLOCATION ON WHAT SUBJECT FROM FEMA? YES.
WE'VE ASKED FOR DIRECT ALLOCATIONS FOR THE LAST COUPLE OF, SINCE 2017, TO MY KNOWLEDGE, AND WE HAVEN'T RECEIVED ANY DIRECT ALLOCATIONS, AND I DON'T THINK THE FEDERAL GOVERNMENT IS GONNA GIVE US A DIRECT ALLOCATION.
BUT WE'VE ASKED FOR DIRECT ALLOCATIONS FROM THE FEDERAL GOVERNMENT MANY TIMES.
AND WHAT WE RECEIVE IS MONEY GOING THROUGH THE STATE, GLO, ET CETERA.
IT DOES NOT COME DIRECTLY TO THE CITY OF HOUSTON.
UM, AND I WAS ALSO WANTING TO KNOW, WITH THE 432 MILLION ALLOCATED IN THE LAST, UM, A RPA, UM, REPORT AND 160 MILLION IN A RPA FUNDS THAT OF REVENUE REPLACEMENT, WE'VE ESSENTIALLY EXHAUSTED THOSE FUNDS.
AND NOW THAT WE'VE LOST THAT CUSHION, I WAS WONDERING WHAT PROACTIVES STEPS, UH, WE WOULD TAKE TO SUPPORT THE AND THE CITY'S FINANCIAL, UM, FUTURE.
I THINK YOU HEARD THE DIRECTOR TALK ABOUT, UH, REVENUE CAP BEING AN ISSUE.
THAT'S HIS OPINION, NOT DAVE MARTIN'S, UH, ALSO SOURCES OF FUNDING.
I THINK HE REFERENCED THAT, AND I WOULD LOOK AT IT ON EXPENDITURE, UH, REDUCTIONS.
SO THE ONLY YOU HEARD OUR DILEMMA WHEN IT COMES TO 68% OF OUR DOLLARS GO TO POLICE AND FIRE.
PERSONNEL FTES, FULL-TIME EQUIVALENTS, UH, OF THE BUDGET ITSELF, THE VAST MAJORITY OF OUR DOLLARS ARE SPENT ON PEOPLE.
AND THE ONLY, IF WE HAVE A CUT IN EXPENDITURES, IT GENERALLY HAS TO COME ON THE PEOPLE END.
AND THAT'S A REALLY HARD THING TO DO.
I WASN'T A PART OF IT, BUT IN 2013, I TOOK OFFICE, IT HAPPENED IN 2012, FISCAL YEAR 2012, AND WE HAD CUTS AND WE HAD FURLOUGHS.
AND THAT'S NOT A GOOD SITUATION FOR THE CITY OF HOUSTON, NOR THE EMPLOYEES.
SO YOU TRY AND DO THINGS OUTSIDE OF THAT BEFORE YOU GET TO THAT DRASTIC STEP.
I DON'T KNOW IF TIFFANY THOMAS HAS AN ANSWER.
AND THEN ED POLLARD AFTER THAT, I DUNNO IF TO THAT PARTICULAR QUESTION.
UM, TO, UH, SPEAK TO YOUR DIRECT ALLOCATION QUESTION.
SO THE HUD SECRETARY, SECRETARY FUDGE IS WORKING ON, UM, A POLICY, UH, FOR CITIES TO RECEIVE DIRECT ALLOCATION FOR DISASTER RECOVERY BECAUSE OF, UM, HOW CHALLENGED LOCAL MUNICIPALITIES ARE IN THE MIDST OF RECOVERY, HAVING TO DEAL WITH A STATE AGENCY AND THAT DELAY, AND THEN ALSO THEIR REIMBURSEMENT PROCESS.
AND SO I, UM, YOUR QUESTION ABOUT WHAT COULD RESIDENTS DO, I THINK AGGRESSIVELY CONTACT, UH, YOUR CONGRESSIONAL REPRESENTATIVE AND ASK THEM TO CONTINUE TO ENCOURAGE, UH, PARTICULARLY, UH, UM, THE HOUSTON DELEGATION TO ENCOURAGE THE HUD SECRETARY, UH, TO MAKE THAT DIRECT ALLOCATION.
UH, I WAS AT NATIONAL LEAGUE OF CITIES IN FEBRUARY AND THIS WAS, UH, DISCUSSED.
UM, AND IN THE MIDST WHILE WE WERE THERE, THE TORNADO IN JACKSON HAPPENED, AND THAT'S A VERY SMALL TOWN.
AND THE QUESTION CAME LIKE, HOW, YOU KNOW, THE CITY NEEDS THE MONEY NOW IN ORDER TO RECOVER AND, YOU KNOW, IF IT HAD NOT BEEN FOR HURRICANE HARVEY, SIMILARLY WITHIN OUR REGION.
SO I THINK, UM, UH, COMING HERE OF COURSE IS GREAT, BUT THOSE ARE FEDERAL DOLLARS AND WE REALLY NEED THAT SAME INTENTION AS Y'ALL COME HERE WITH THAT, YOUR CONGRESSIONAL REPRESENTATIVES, 'CAUSE WE CAN DO THIS COLLABORATIVELY, UM, BECAUSE IT'S NOT A MATTER OF IF, IT'S A MATTER OF WHEN THE NEXT NEXT DISASTER HAPPENS.
AND THEN THAT FUND BALANCE, THAT'S OUR LIQUID MONEY WE PULL DOWN ON THAT IN ORDER TO RESPOND TO WHAT WE NEED TO TAKE IN THE CITY.
SO I THINK THAT'S A, UH, AN EASY NEXT STEP TO ADDING YOUR ADVOCACY.
THANK YOU COUNCIL MEMBER, ED POLLARD.
AND THANK YOU FOR YOUR QUESTIONS.
UH, AND THANK YOU FOR COMING FORWARD, TAKING THE TIME TO BE HERE.
UH, I, I THINK THE CITY'S OUTLOOK ON, UM, OUR FINANCIAL FUTURE IS GONNA BE A LOT DEPENDENT ON HOW THAT FUND BALANCE LOOKS GOING FORWARD.
RIGHT NOW, WE'RE IN A HEALTHY SPOT, A LOT OF IT BECAUSE OF, UM, SOME OF THE FEDERAL DOLLARS THAT DID COME IN.
PLUS WE HAVE INCREASED SALES TAX NUMBERS, UM, MONTH AFTER MONTH.
AND SO, UH, I BELIEVE IT'S THE ADMINISTRATION'S POSITION THAT TO KEEP THAT FUND BALANCE AS HEALTHY AS POSSIBLE FOR THE FUTURE.
AND YOU LOOK AT IT LIKE A SAVINGS ACCOUNT, RIGHT? WE HAVE MONEY THAT WE KNOW WE NEED TO SPEND ON ALL OF OUR CORE SERVICES TO DIFFERENT DEPARTMENTS, BUT WE STILL WANT TO HAVE A HEALTHY SAVINGS ACCOUNT FOR THE FUTURE BECAUSE WE DON'T KNOW WHAT TO
[00:55:01]
EXPECT WITHIN THE FUTURE, RIGHT? AND SO IF WE HAVE THAT HEALTHY FUND BALANCE THERE, UH, WITH THAT FIVE YEAR, UH, PROJECTION THAT YOU SAW, WE MAY HAVE MORE LIABILITIES AHEAD, BUT THE HEALTHIER THE FUND BALANCE, THE MORE FLEXIBILITY WE HAVE TO MEET SOME OF THOSE NEEDS.AND SO TO HAVE IT AS HIGH AS POSSIBLE IS GOOD.
I DO THINK THAT WHILE IT IS HIGH, THERE MAY BE AN OPPORTUNITY FOR US TO UTILIZE SOME OF THAT MONEY FOR ADDITIONAL SERVICES FOR CONSTITUENTS THAT ARE ASKING FOR CERTAIN THINGS.
UM, BUT OVERALL TO KEEP, KEEP IT AS HEALTHY AS POSSIBLE TO ENSURE THAT WHEN WE ARE MET WITH CHALLENGES IN, YOU KNOW, TWO, THREE YEARS DOWN THE LINE, THAT WE HAVE SOME CUSHION THERE TO MEET THOSE GAPS.
AND MR. AHMED, JUST A, UH, SOME COMMENTARY AROUND THAT.
I JUST DID SOME QUICK MATH ON THE FIVE YEAR FORECAST.
AND AS YOU KNOW, THIS YEAR WE HAVE A $220 MILLION EXCESS FUND BALANCE OVER 7.5, WHICH IS GOOD.
AND 25 THAT GOES DOWN TO 50 MILLION.
AND THEN IN 26, THAT IS A NEGATIVE $130 MILLION.
SO AS WE PREPARE FOR BUDGET AMENDMENTS, UH, WHAT WE'RE ASKING FOR, AND THIS IS IN THE MAYOR'S REPORT, THAT IF YOU HAVE AN AMENDMENT THAT REQUIRES MONEY, YOU HAVE TO FIND A FUNDING SOURCE TO FUND THAT PROJECT.
THAT FUNDING SOURCE COULD BE RAINY DAY FUND FUND BALANCE, BUT THEN YOU START LOOKING AT FISCAL YEAR 25, 26, AND 27 AND SEE WHAT THE DETRIMENTAL DECREASE IS GONNA DO TO THAT.
SO, UM, I WON'T BE HERE AS A CITY COUNCIL MEMBER AT THAT TIME, BUT A NUMBER OF FOLKS WILL BE.
SO YOU LIKE TO ESTABLISH A GOOD RAINY DAY FUND, A GOOD FUND BALANCE FOR FUTURE USE.
UM, AS A TAXPAYER, A LOT OF TAXPAYERS LOOK AT IT AND SAY, I GIVE YOU MY TAX DOLLARS FOR YOU TO SPEND ON PROJECTS IN MY AREA.
BUT IT'S A TOUGH BALANCING ACT AND, UM, IF YOU HAVE ANY PARTICULAR ITEMS, UH, I WOULD ADDRESS THOSE TO YOUR COUNCIL MEMBERS SPECIFIC.
I KNOW WE'VE HAD A LOT OF FOLKS COME IN FROM THE NORTHEAST, UH, GROUP, UH, WITH A LOT OF CONCERNS AND, UM, YOU KNOW, WE'RE LISTENING REALLY CLOSELY TO THEM TO SEE WHAT WE CAN DO.
BUT IF YOU HAVE ANY IDEAS OR CONCEPTS, I WOULD DEFINITELY RELAY THAT BACK TO EITHER MYSELF AND I'LL RELAY IT TO YOUR COUNCIL MEMBER OR THIS BODY IN GENERAL.
BUT THANK YOU FOR YOUR INTEREST.
THANK YOU, AMANDA SHI HOPE I PRONOUNCE THAT CORRECT? YES, THANK YOU.
UH, I WANTED TO, UM, ONCE AGAIN THANK THE CITY DEPARTMENT MEMBERS FOR ALWAYS, UM, PUTTING IN THE WORK, UH, NOW AND ALSO JUST THROUGHOUT THE WHOLE YEAR, UH, REALLY AMAZING SERVICES OVERALL.
UM, I HAVE SOME QUESTIONS AROUND JUST PERFORMANCE MEASURES AND OUTCOME-BASED BUDGETING.
UH, AND I KNOW THIS IS JUST A CHALLENGE ALL ACROSS, UM, ANY KIND OF WORK LIKE THIS, THE PERFORMANCE MEASURES SEEM TO BE KIND OF LIKE OUTPUTS AS OPPOSED TO OUTCOMES.
SO, UM, HOW ARE WE GONNA DISTINGUISH BETWEEN THESE AS WE TRANSITION INTO OUTPUT OUTCOME-BASED BUDGETING? AND THEN WE'RE OFTEN TOLD THAT PUBLIC SAFETY IS PRIORITY NUMBER ONE, UM, WITH A FOCUS SPECIFIC ON POLICE.
IF WE IMAGINE A BUDGET WHERE PUBLIC SAFETY IS ADEQUATELY FUNDED, WHAT WOULD BE YOUR NEXT TOP FINANCIAL PRIORITY FOR THE CITY? BE OKAY.
GIMME THAT LAST QUESTION AGAIN.
UM, IF SAFE, IF PUBLIC SAFETY WERE ADEQUATELY FUNDED, UH, WHAT WOULD YOUR NEXT TOP PRIORITY FOR THE CITY BE? I BET YOU'LL FINANCIALLY BE 16, 16 DIFFERENT ANSWERS TO THAT ONE.
SO, UM, I MEAN, I DON'T KNOW IF ANY COUNCIL MEMBER WANTS TO JUMP IN, UH, WITH YOUR PARTICULAR ANSWER.
COUNCIL MEMBER SALLY ALCORN, I'LL DEFINITELY JUMP IN AND SAY INFRASTRUCTURE
UM, THAT WAS THE PRIORITY OF THE SURVEYS.
UH, PUBLIC SAFETY AND INFRASTRUCTURE.
I MEAN, THAT'S THAT WHEN I DID A, UH, THE, MY 2 CENT, YOUR 2 CENT SURVEY, THOSE WERE ALWAYS THE TOP TWO.
SO, UM, INFRASTRUCTURE, I MEAN, WOULD BE THE NEXT PRIORITY.
AND YOU BRING UP A GOOD POINT ABOUT OUTCOME-BASED BUDGETING.
WE ARE LOOKING AT OUTCOMES, AND WE SHOULD BE FUNDING ONLY THE PROGRAMS AND PEOPLE AND INITIATIVES THAT MEET THOSE OUTCOMES AND NOT FUND THE ONES THAT, THAT DON'T MEET THOSE OUTCOMES.
I MEAN, THERE'S A WAY TO MAKE EVERY SINGLE THING MEET SOME KIND OF OUTCOME, BUT I'M GONNA BE LOOKING REALLY, REALLY, UM, HARD AT THE INDIVIDUAL DEPARTMENT'S PERFORMANCE MEASURES.
SOMETIMES THEY'RE MEANINGFUL AND THINGS THAT THE, THAT THE CITY REALLY THE RESIDENTS REALLY WANNA SEE.
AND SOMETIMES I DON'T THINK THAT THEY'RE, THEY'RE REALLY THE BEST JUDGE OF WHAT, OF WHAT THE REALLY BEST MEASURE OF WHAT WE'RE DOING.
SO WE'LL, UH, USING OUTCOME-BASED BUDGETING, I'M LOOKING A LOT AT THE PERFORMANCE MEASURES OF EACH DEPARTMENT AND SEEING, MAKING SURE THAT WE'RE FINDING THINGS TOWARD MEANINGFUL PERFORMANCE MEASURES.
AND THANK YOU FOR YOUR QUESTION.
I, I'LL AGREE WITH, UH, MY COLLEAGUE INFRASTRUCTURE
[01:00:01]
WILL BE, UH, NEXT UP AFTER PUBLIC SAFETY.FROM MY OFFICE'S PERSPECTIVE, UH, WHEN IT COMES TO THE OUTCOME BASED BUDGETING, UH, THIS IS THE FIRST YEAR, SO WE HAVE TO KIND OF SEE HOW IT TAKES PLACE.
ONE OF THE THINGS I'LL BE LOOKING AT IS IT SEEMS LIKE WE'RE ALLOWING THE DEPARTMENTS TO OVERSEE THEIR OWN OUTCOMES AND, YOU KNOW, THEY'RE THEIR OWN JUDGE AND JURY.
SO AS COUNCIL MEMBERS, WE HAVE TO FIND SOME TIME TO, TO HAVE A CLEAR UNDERSTANDING OF, UH, THEIR PERSPECTIVE ON THAT, WHERE THE ACCOUNTABILITY IS WITHIN ALL THAT.
AND THEN LEAN ON THE, UH, FINANCE DEPARTMENT TO BE ABLE TO, UH, ADVISE US ON DO THEY THINK THIS PARTICULAR WAY THAT WE'RE DOING IT THIS YEAR IS BENEFICIAL? IF NOT, WHAT IMPROVEMENTS NEED TO BE MADE GOING FORWARD.
COUNCIL MEMBER TIFFANY D. THOMAS.
UM, SO TO ANSWER YOUR QUESTION ABOUT THE PRIORITIES, I THINK THE WAY IT SHOWS UP IN THE BUDGET, OF COURSE THE, IT'S PUBLIC SAFETY IS THE DOMINANT, BUT WHEN WE LOOK AT, UM, THE VOTES WE'VE TAKEN IN TERMS OF PUBLIC SAFETY, THAT DOESN'T JUST SHOW UP EXCLUSIVELY WITH POLICE AND FIRE, PUBLIC SAFETY SHOWS UP IN THE BUDGET IS INVESTING IN NEIGHBORHOODS.
SO I WOULD SAY, UH, MULTIPLE THINGS ARE HAPPENING AT THE SAME TIME, UH, QUALITY OF LIFE, OUR INFRASTRUCTURE.
UM, WE ARE REMOVING 400 DANGEROUS BUILDINGS.
UM, WE ARE, UH, CLEANING UP, YOU KNOW, ILLEGAL DUMPING AND INVESTING MILLIONS IN THAT.
UM, SO OUR SI QUALITY OF LIFE, RIGHT? IT, THOSE ENHANCEMENTS.
SO IT'S, IT'S A, A FEW THINGS HAPPENING AT THE SAME TIME, BUT THE WAY THAT IT SHOWS UP IN THE BUDGET BECAUSE OF THE, HOW THE DOMINANT SPACE IT TAKES UP WITH SALARIES, UM, IT, IT SHOWS UP AT AS PUBLIC SAFETY.
UM, HOUSING IS NOT ON THE GENERAL FUND.
THAT'S A HUGE, UH, FOCUS POINT OF THE CITY.
THOSE ITEMS ARE AGGRESSIVE IN TERMS OF MAKING SURE WE HAVE ENOUGH INVENTORY TO KEEP PEOPLE HOUSED AND STABILIZED.
UM, HOMELESSNESS AND ALL OF THOSE, UH, UH, THINGS ARE SHOWING UP.
AND SO I I, I THINK THE DIRECTOR JONES HAS MENTIONED THIS, MENTIONED THIS AT THE LAST, UH, BFA MEETING, THAT THIS IS THE FIRST ITERATION OF THIS.
AND AS WE WORK THROUGH IT, THAT THAT SURVEY DESIGN, HOW THE, UM, UM, INFORMATION IS PRESENTED WILL CHANGE OVER TIME BECAUSE THIS IS NEW TO TURN THIS SHIP FOR THE CITY.
UM, AND THEN ALSO FOR US, HOW WE DIGEST IT AND THEN HOW WE COMMUNICATE TO EVERYDAY HOUSTONIANS SO THEY CAN UNDERSTAND HOW THEIR DOLLARS ARE AT WORK.
UM, SO, UM, I, I THINK THE, THE COMMENTS THAT YOU'RE PROVIDING WILL BE HELPFUL TO THEM AS THEY CONTINUE TO, UM, CHANGE THAT ITERATION AND REPORT EVERY MONTH.
THOSE, YOU KNOW, THOSE SUGGESTIONS WILL BE INCLUDED.
SO AM I HEARING THAT YOU GUYS WANT TO ITERATE AND MAKE THE BUDGETING AND FINANCES MORE, UH, ACCESSIBLE TO THE PUBLIC? IS THAT WHAT YOU'RE SAYING? I DIDN'T, WHAT I SAID WAS THAT I THINK, UM, THE SUGGESTIONS THAT YOU'RE MAKING WILL BE HELPFUL AS THE FINANCE DEPARTMENT CONTINUES TO TWEAK THE SURVEY SINCE IT'S THE FIRST TIME THAT THEY'VE DONE THAT.
SO YOU DO KNOW WE HAVE A, SINCE MARCH WE HAVE AN OPEN FINANCE TOOL THAT WAS IN A BUDGET AMENDMENT THAT WE PASSED THAT I AUTHORED IN 2016.
IT GIVES YOU THE ABILITY TO LOOK AT EVERY CHECK WE WRITE.
YOU CAN QUERY THAT CHECK BY A PARTICULAR VENDOR, BY A PARTICULAR DOLLAR AMOUNT, BY A PARTICULAR PURCHASE ORDER, BY A JOB DESCRIPTION, ANYTHING LIKE THAT.
YOU ALSO HAVE THE ABILITY TO SEE HOW MUCH MONEY EVERYONE IN THE CITY OF HOUSTON MAKES.
ALL OF OUR PAYROLL DATA IS ONLINE NOW.
SO WE'VE DONE A GREAT JOB OF CREATING TRANSPARENCY IN THE CITY OF HOUSTON, MAINLY FISCAL TRANSPARENCY.
AND, UH, I WOULD INVITE EVERYONE IN THE AUDIENCE TO TAKE A LOOK AT THAT PORTAL AND IF YOU HAVE ANY QUESTIONS AS TO EXPENDITURES FROM THE CITY AND HOW THEY'RE ALLOCATED TO PLEASE LOOK AT THAT.
YOU KNOW, THIS IS, I THINK OUR THIRD TYPE OF BUDGET PROCESS THAT WE USED IN THE LAST FIVE YEARS.
WE STARTED WITH, I THINK IT WAS PROCESS, PERFORMANCE BASED BUDGETING, THEN WE WENT TO ZERO BASED BASED BUDGET AND THEN WE'RE NOW AT OUTCOME BASED BUDGETING.
SO, UM, DIRECTOR JONES, I'M GONNA TAKE A SHOT OVERALL AND OUR BUDGET.
IF I SAID THAT 75% OF OUR EXPENDITURES ARE PERSONNEL, IS THAT HOW CLOSE TO BEING ACCURATE IS THAT? WHAT IS THE PERCENT? I KNOW IT'S 68 FOR POLICE AND FIRE, SIR.
HIGH 60, UH, VICE CHAIR POLLARD SAID 58.
SO I THINK THAT WAS THE MAIN REASON WHY WE REMOVED OUR FOCUS FROM ZERO BASE TO OUTCOME BASED.
[01:05:01]
IS BECAUSE THE ZERO BASE WAS HARD TO DO WHEN YOU HAVE 61%, 58% OF YOUR BUDGET AND PERSONNEL.
SO THANK YOU FOR YOUR INTEREST AND UH, LOOK FORWARD TO SEEING YOU AT ADDITIONAL BUDGET WORKSHOPS.
COUNCIL MEMBER EDWARD POLLARD.
LASTLY, I KNOW WE'RE COMING UP TO OUR, OUR OUR MINUTE, I MEAN OUR, OUR HOUR ON THIS, BUT, UM, I THINK COUNCIL MEMBER ALCORN DID A GREAT JOB OF DOING A SURVEY TO BE ABLE TO KIND OF GET A PULSE OF THE COMMUNITY.
UM, WHAT OUR OFFICE ALSO DOES OUTSIDE OF JUST THE SURVEY IS JUST UNDERSTAND WHAT THE CALLS TO SERVICE ARE, RIGHT? WHAT ARE PEOPLE CALLING THE CITY FOR? SO THREE, ONE, AND MANY OF THEM ARE CALLING FOR EMERGENCY POLICE, NON-EMERGENCY POLICE, FIRE, AND THEN ALSO PUBLIC WORKS, RIGHT? INFRASTRUCTURE.
SO WHEN YOU SEE THE BULK OF YOUR DOLLARS GOING TOWARDS THOSE DEPARTMENTS, AND PROBABLY AFTER THAT WOULD BE SOLID WASTE, YOU CAN LOOK AT THE NEEDS OF THE CAUSE OF THE PEOPLE WHO ARE CALLING IN AND SAYING, PLEASE RESPOND TO THIS PARTICULAR ISSUE.
AS A WAY TO PUT MORE EMPHASIS ON ENSURING THAT THOSE DEPARTMENTS HAVE THE CAPACITY TO MEET THE CALLS AND THE SERVICES THAT, THAT THEY'RE REQUESTED.
NEXT WE'LL TRANSITION INTO, UH, THE FINANCE DEPARTMENT AND EXAMINE IN THE FINANCE DEPARTMENT'S INDIVIDUAL BUDGET.