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ALCORN CHAIR OF THE BUDGET AND FISCAL AFFAIRS COMMITTEE,[Budget and Fiscal Affairs on June 4, 2024.]
AND WE ARE HERE FOR THE GOOD MORNING, UH, THE APRIL 30TH, 2024 MONTHLY FINANCIAL REPORT, AND I AM PLEASED TO WELCOME, UM, MY VICE CHAIR COUNCIL MEMBER MARIO CASTILLO.UH, WE HAVE THE CITY ATTORNEY HERE, ARTURO MICHELLE.
WE HAVE COUNCIL MEMBER ED POLLARD.
WE HAVE LIZ WITH COUNCIL MEMBER AMY PECK'S OFFICE.
WE HAVE DEEDEE WITH THE MAYOR PRO TEM MARTHA CASTEX TATUM'S OFFICE.
WE HAVE COUNCIL MEMBER JULIAN RAMIREZ.
WE HAVE BRAD WITH COUNCIL MEMBER, UM, MARYANNE HUFFMAN'S OFFICE.
WE HAVE STAFF FROM ASHA JACKSON'S OFFICE.
WE HAVE KATE WITH ABBY CAYMAN'S OFFICE, AND WE HAVE COUNCIL MEMBER FRED FLICKINGER.
AND WE ARE, UM, JOINED BY THE CONTROLLER, CHRIS HOLLINS AND FINANCE DIRECTOR MELISSA DKI.
GOOD MORNING, MADAM CHAIR COMMITTEE MEMBERS AND STAFF.
I'M PLEASED TO PRESENT THE MONTHLY FINANCIAL REPORT FOR THE MONTH ENDED APRIL 30TH, 2024 IN THE GENERAL FUND.
THE CONTROLLER'S OFFICE IS PROJECTING AN ENDING FUND BALANCE OF $453.8 MILLION FOR FISCAL YEAR 2024.
THIS IS $14 MILLION LOWER THAN THE PROJECTION OF THE FINANCE DEPARTMENT DUE TO MY OFFICE HAVING A LOWER REVENUE PROJECTION THAN THE FINANCE DEPARTMENT.
BASED ON OUR CURRENT PROJECTIONS, THE FUND BALANCE WILL BE APPROXIMATELY $267.5 MILLION ABOVE THE CITY'S TARGET, UPHOLDING 7.5% OF TOTAL EXPENDITURES, EXCLUDING DEBT SERVICES, PAY AND PAY AS YOU GO IN RESERVE.
OUR REVENUE AND EXPENDITURE PROJECTIONS ARE UNCHANGED FROM THE MARCH, 2024 REPORT FOR THE ENTERPRISE FUNDS.
MY OFFICE IS PROJECTING NO CHANGES FROM THE PREVIOUS MONTH'S AMOUNTS IN THE AVIATION OPERATING FUND CONVENTION AND ENTERTAINMENT FUND, COMBINED UTILITY SYSTEM FUND, STORMWATER FUND, OR THE DEDICATED DRAINAGE AND STREET RENEWAL FUNDS, AND FOR THE CITY'S COMMERCIAL PAPER AND BONDS.
THIS CITY'S PRACTICE HAS BEEN TO MAINTAIN NO MORE THAN 20% OF THE TOTAL OUTSTANDING DEBT FOR EACH TYPE OF DEBT IN A VARIABLE RATE STRUCTURE.
THE RATIO OF UNH VARIABLE RATE DEBT FOR EACH TYPE OF OUTSTANDING DEBT WAS WELL BELOW THESE THRESHOLDS.
BEFORE I CLOSE, I'D LIKE TO QUICKLY ACKNOWLEDGE THAT TOMORROW WILL BE THE FIRST OPPORTUNITY FOR CITY COUNCIL TO CONSIDER AND POTENTIALLY VOTE ON THE PROPOSED FISCAL YEAR 2025 BUDGET.
AMONG MANY OTHER ISSUES FACING OUR COMMUNITIES, THE NEED FOR INCREASED TRANSPARENCY AND ACCOUNTABILITY IS ONE THAT HAS GONE UNADDRESSED FOR FAR TOO LONG.
AND SO AS WE PREPARE TO SURMOUNT SIGNIFICANT FINANCIAL CHALLENGES, IT'S IMPORTANT THAT WE SPEND THE NEXT YEAR FOCUSING ON OPPORTUNITIES TO DECREASE REVENUES, PARDON ME, TO INCREASE REVENUES AND TO DECREASE OUR COSTS WITHOUT SACRIFICING THE QUALITY OF SERVICE LEVELS THAT HOUSTONIANS, UH, DESERVE.
AND SO, AS YOU KNOW, I'VE MET WITH MOST OF YOU ONE-ON-ONE, AND THOSE MEETINGS CONTINUE.
UH, AND WE'RE ASKING FOR YOUR SUPPORT FOR, YOU KNOW, OUR EFFORTS TO GO AFTER THOSE OPPORTUNITIES, UH, AND TO CONTINUE TO INCREASE TRANSPARENCY, NOT ONLY FOR HOUSTONIANS, BUT ALSO FOR THOSE SITTING AROUND THIS HORSESHOE SO THAT YOU CAN BE MORE INFORMED AS POLICY MAKERS AND ULTIMATELY THE PEOPLE OF HOUSTON CAN BE MORE INFORMED ABOUT WHERE THE TAXPAYER DOLLARS ARE GOING.
SO AGAIN, THANK Y'ALL FOR THE OPPORTUNITY, AND THIS CONCLUDES MY REPORT.
THIS IS THE 10 PLUS TWO FINANCIAL REPORT FOR THE PERIOD ENDING APRIL 30TH, 2024.
FISCAL YEAR 2024 PROJECTIONS ARE BASED ON 10 MONTHS OF ACTUAL RESULTS AND TWO MONTHS OF PROJECTIONS FOR THE GENERAL FUND.
OUR REVENUE PROJECTION IS $42.5 MILLION HIGHER THAN THE ADOPTED BUDGET, BUT REMAINS UNCHANGED FROM THE PRIOR MONTH.
OUR EXPENDITURE PROJECTION IS $42.4 MILLION HIGHER THAN THE ADOPTED BUDGET, AND ALSO REMAINS UNCHANGED FROM THE PRIOR MONTH.
WE ARE PROJECTING THE ENDING FUND BALANCE OF 467.5 MILLION, WHICH REMAINS UNCHANGED FROM THE PRIOR MONTH, AND IS 18.8% OF ESTIMATED EXPENDITURES LESS DEBT SERVICE AND PAY AS YOU GO.
THIS FUND BALANCE REPRESENTS 281.5 MILLION ABOVE THE TARGETED 7.5% OF EXPENDITURES, EXCLUDING DEBT SERVICE AND PAY AS YOU GO.
AND JUST TO TOUCH ON THE SALES TAX, UM, AS WE GET THE INFORMATION ON THE RECEIPTS MONTHLY, THE SALES TAX RECEIPTS FOR MARCH, UH, WERE $70.6 MILLION, WHICH IS ABOUT 5% LOWER THAN THE SAME PERIOD LAST YEAR.
HOWEVER, WE STILL FEEL THAT THE CURRENT ESTIMATE OF $880 MILLION IS CONSERVATIVE.
GIVEN THAT YEAR TO DATE, WE'RE AVERAGING, UM, ROUGHLY FLAT TO PRIOR YEAR COLLECTIONS.
SO TO, UM, MEET THE CURRENT PROJECTION OF 880.7 MILLION, THE REMAINING MONTHS COULD COME IN UP TO 2.65% DOWN FROM THE PRIOR YEAR.
SO AGAIN, WE, WE STILL FEEL GOOD WITH THE PROJECTION OF WHERE WE ARE IN SALES TAX.
WE DON'T HAVE ANY CHANGES TO THE ENTERPRISE, UM, FUNDS THIS MONTH.
UM, AS THE CONTROLLER MENTIONED,
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UH, THE ONLY CHANGES ON THE ESSENTIAL PUBLIC HEALTH SERVICES FUND WHERE REVENUES ARE INCREASING BY $1.8 MILLION, UH, DUE TO HIGHER THAN ANTICIPATED, UH, PUBLIC HEALTH PROVIDER CHARITY CARE PROGRAM REIMBURSEMENTS, AS WELL AS INTEREST ON POOLED INVESTMENTS.AND I'D LIKE TO WELCOME COUNCIL MEMBER THOMAS, AND COUNCIL MEMBER MARTINEZ TO THE HORSESHOE.
ANY QUESTIONS? COUNCIL MEMBER POLLARD.
AND, UH, THANK YOU BOTH FOR YOUR REPORTS.
UM, MY QUESTION IS FOR THE DIRECTOR, UM, LOOKING AT OUR CURRENT, UM, BUDGET DEFICIT THAT WE HAVE TODAY FOR FISCAL YEAR 26 THAT WE KNOW THAT'S LOOMING.
DO YOU KNOW WHAT THAT FIGURE IS? FISCAL YEAR 26, WHAT ARE WE LOOKING AT TODAY? RIGHT, SO IN THE FIVE YEAR FORECAST PRESENTATION THAT I MADE BACK IN APRIL, UM, IT GIVES THOSE FIGURES, I DON'T HAVE IT OFF THE VERY TOP OF MY HEAD, BUT I KNOW THAT THE FISCAL YEAR 25 DEFICIT, UM, WAS WE, WE ARE IN THE PROPOSED BUDGET, WE'RE, UH, DRAWING FROM FUND BALANCE ABOUT 187 MILLION.
SO IT WOULD BE, IT WOULD BE HIGHER THAN THAT AS SOME OF THE CONTRACTUAL OBLIGATIONS.
UM, GO, DO YOU KNOW WHAT THAT GAP WOULD BE BETWEEN WHAT WE, WHAT THE, WHAT THE DEFICIT IS TODAY? UM, AS IT, UH, WILL BE IF THAT PROPOSED BUDGET PASSES, UM, FOR FISCAL YEAR 26? SO ARE YOU TALKING ABOUT FISCAL YEAR 25? SO THE PROPOSED BUDGET THAT'S, SO RIGHT NOW WE'RE, WE'RE GOING INTO FISCAL YEAR 25.
WHEN WE GO INTO FISCAL YEAR 25, WE'RE B WE'RE, WE ARE USING FUND BALANCE MONEY YES.
TO BALANCE THE FISCAL YEAR 25 BUDGET.
BUT FOR FISCAL YEAR 26 MM-HMM
WE'RE NOT GONNA HAVE SOME OF THAT ONE TIME MONEY THAT WE'RE USING FOR FISCAL YEAR 25.
SO WHAT I'M ASKING IS WHAT, BASED ON THE PROPOSED BUDGET THAT IS PRESENTED MM-HMM
FOR US TO VOTE ON IN THE NEXT COUPLE WEEKS? YES.
WHAT WILL THE, WHAT WILL THE DEFICIT BE FOR THE FOLLOWING YEAR AFTER THAT? OKAY.
THOSE, SOME OF THOSE PROJECTIONS WERE INCLUDED IN THE FIVE YEAR FORECAST, AND I CAN CAN GET THOSE EXACT NUMBERS TO YOU, BUT WHAT I CAN TELL YOU IS THAT THERE WILL NOT BE SUFFICIENT FUND BALANCE IN EXCESS OF THE 7.5% TO CLOSE THE BUDGETARY GAP IN FY 26 THE WAY WE DID IN FY 25.
SO THAT'S WHERE IT GETS TO, AS THE CONTROLLER MENTIONED, FINDING THOSE RECURRING REVENUE SOURCES AND FURTHER EXPENDITURE REDUCTIONS TO PREPARE FOR FY 26.
SO IN THIS, IN THIS CURRENT BUDGET BUDGET THAT IS PROPOSED, THERE ARE NEW, NO, NO NEW REVENUE, AND WE'RE USING ONE TIME FUNDING SOURCES TO BALANCE THIS YEAR'S BUDGET, BUT WE WON'T HAVE THAT SAME LUXURY TO DO THE FOLLOWING YEAR.
SO THAT'S WHY WE NEED TO FIND WAYS TO INCREASE THE REVENUE AND MAYBE FIND WAYS TO CUT BACK ON SOME OF OUR EXPENDITURES YEAH.
EFFICIENCIES TO CLOSE THAT GAP.
BUT WE'RE SPENDING MORE MONEY IN THIS PROPOSED BUDGET, UM, THAN WE'RE SPENDING IN THIS CURRENT FISCAL YEAR.
SO THERE HAS TO BE A LARGER DEFICIT THEN THAT WE'RE CREATING.
SO MY QUESTION TO, SO YOU DON'T HAVE THE NUMBER ON WHAT THAT GAP IS, COUNCIL MEMBER POLLARD, I'M, I'M LOOKING AT OUR FIVE YEAR FORECAST.
IT LOOKS LIKE, UM, THE, THE GAP, UM, AND THIS IS FOR FY 2026, THIS IS IN THE SLIDE YOU HAD DIRECTOR.
UM, THE CURRENT GAP, EXCLUDING THE HFD DEAL WOULD BE 128 MILLION IF THE PESSIMISTIC DEAL IS 229 MILLION.
AND THEN THE OPTIMISTIC IF NEW REVENUES COME WERE, IT WAS ACTUALLY A SURPLUS OF 45 MILLION CONTROLLER.
DO YOU WANNA CHIME IN AT ALL? UH, SURE.
SO I MEAN, MY NUMBERS ARE IN A SIMILAR BALLPARK.
UH, AS IS COMMON, OUR REVENUE PROJECTIONS DIFFER SLIGHTLY MOSTLY AROUND SALES TAX.
AND SO AGAIN, WHAT WE ARE PROJECTING FOR THE END OF THIS FISCAL YEAR IS A FUND BALANCE THAT'S JUST ABOUT $270 MILLION NORTH OF THE 7.5%.
UH, THIS BUDGET AS, AS PRESENTED IN THE CURRENT FORM, UH, SPENDS DOWN ABOUT 200 MILLION OF THAT.
SO YOU'RE LOOKING AT, AT THE END OF FISCAL YEAR 25 BEING ABOUT $70 MILLION NORTH OF THE 7.5% THRESHOLD.
AND THEN AGAIN, SIMILAR TO DIRECTOR DEBOSKY, I DON'T HAVE THE EXACT FIGURES IN FRONT OF ME, BUT I THINK WE'RE LOOKING AT SOMETHING LIKE A QUARTER BILLION, UM, PROJECTED FOR 2026, YOU KNOW, 250 MILLION THERE, THEREABOUTS.
AND SO AGAIN, THE, THE POINT IS THAT WE CAN'T CON CONTINUE DOWN THAT PATH LONGER THAN FISCAL YEAR 2025.
WE ABSOLUTELY HAVE TO FIGURE OUT WAYS TO EITHER BE MORE EFFICIENT IN OPERATIONS AND OR, UH, BRING IN SOME RECURRING
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REVENUE.YOU CAN PUT ME BACK IN THE QUEUE YOU'RE IN.
BUT I WOULD LIKE TO WELCOME COUNCIL MEMBER ABBY CAYMAN AND VERONICA WITH COUNCIL MEMBER LETITIA PLUMMER'S OFFICE DIRECTOR.
WOULD YOU SHARE, UM, THE SAME SENTIMENTS AS THE CONTROLLER? THAT WILL BE AROUND 250 MILLION ROUGHLY? YEAH.
BASED ON THE FIVE YEAR FORECAST.
SO HOW, HOW WILL WE, HOW WILL WE CLOSE THAT LARGE GAP? I MEAN, THAT'S A HUGE GAP THERE.
ARE, IS THE, HAS THE ADMINISTRATION PUT FORTH ANY IDEAS ON WHAT WE CAN CONTEMPLATE, UH, UTILIZING OR DOING TO CLOSE THAT GAP? SURE.
I THINK I TALKED ABOUT SOME OF THOSE THINGS IN THE FIVE YEAR FORECAST PRESENTATION.
SO THAT, UM, THE, THE SLIDE THAT THE CHAIRWOMAN MENTIONED WITH THE SHOWING THE GAP, UH, THE OPTIMISTIC PESSIMISTIC UNDER THE OPTIMISTIC SCENARIO, SOME OF THE REVENUE IDEAS THAT WE, UH, LOOKED AT AND WE'VE STARTED ON THE, UM, GARBAGE FEE, UM, ANALYSIS USING THE BURNS AND MCDONALD CONTRACT THAT, UM, COUNCIL APPROVED A COUPLE WEEKS AGO, UH, GETTING STARTED LOOKING AT THE SOLID WASTE OPERATIONS AND ALSO ON THE, UM, COST OF SERVICE.
UM, SO THAT ROUGHLY, YOU KNOW, IF WE INSTITUTED A GARBAGE FEE THAT WOULD, UM, TOTALLY OFFSET AND PAY FOR WHAT THE SOLID WASTE DEPARTMENT BUDGET IS, THAT WOULD PROVIDE RELIEF OF ABOUT A HUNDRED MILLION DOLLARS TO THE GENERAL FUND.
IS THERE ANY TIMELINE ON, LET'S SAY WE DID GO TO A FEE MM-HMM
A TIMELINE OF HOW LONG IT WOULD TAKE TO IMPLEMENT AND WHAT COULD THAT BE DONE IN THE NEXT FISCAL YEAR? WOULD THAT ROLL OVER TO THE FOLLOWING? NO, I THINK IT COULD BE DONE SOMETIME, EVEN MID FISCAL YEAR 25.
UM, IT DOES TAKE A WHILE TO COMPLETE, YOU KNOW, A FULL STUDY.
AND WE ALSO WANNA LOOK AT THE OPERATIONS OF THE SOLID WASTE DEPARTMENT.
UM, NOT JUST LOOKING AT WHAT DOES IT COST TO PROVIDE THE SERVICE WE'RE DOING, BUT WHAT WOULD IT COST TO, YOU KNOW, IMPROVE SERVICES AS WELL.
AND FROM AN OPTIMISTIC STANDPOINT, HOW MUCH MONEY DO YOU THINK THAT WOULD GENERATE? IT'S ROUGHLY A HUNDRED MILLION DOLLARS.
SO THAT WILL LEAVE ANOTHER 150.
SO WHAT WOULD WE DO? WHAT ARE SOME OF THE IDEAS FOR THE 150 MM-HMM
SO SOME OF THE OTHER OPTIONS WE'RE DISCUSSING, OF COURSE, WE'RE TALKING ABOUT, UM, YOU KNOW, COLLABORATIONS WITH OTHER, UM, JURISDICTIONS, UM, TO FIND SOME EFFICIENCIES, UH, SIMILAR TO, UM, YOU KNOW, WORKING WITH METRO TO BRING IN MORE DOLLARS, UH, FOR STREETS AND DRAINAGE PROJECTS.
UM, THAT DOESN'T EXACTLY ADDRESS THIS GAP THAT WE'RE TALKING ABOUT, BUT THOSE ARE SOME OF THE COLLABORATIONS THAT ARE ONGOING.
UM, SOME OF THE OTHER IDEAS WE'VE TALKED ABOUT, OF COURSE, IS THE, UM, PROPERTY TAX, UH, GOING TO THE VOTERS ON THE PROPERTY TAX.
UM, CAP INCREASE COULD BE IN THE FORM OF A PUBLIC SAFETY ADD-ON.
LIKE WE HAD DONE, UH, PROP H STYLE BACK IN 2006.
UM, AN ALL OUT REPEAL OF THE REVENUE CAP WOULD BE A CHARTER AMENDMENT.
SO THAT WOULD HAVE TO WAIT, YOU KNOW, TWO YEARS SINCE OUR LAST CHARTER AMENDMENT.
UM, SO SOMETHING MORE ON THE NEAR TERM HORIZON WOULD BE SOMETHING LIKE A PROP H STYLE ADD-ON.
AND WHAT ARE THE DISCUSSIONS REGARDING THE DRAINAGE LITIGATION? I KNOW THERE'S A HUNDRED MILLION DOLLAR JUDGMENT OUT THERE, ARTURO.
IS THAT SOMETHING THAT CAN BE DISCUSSED ON, UH, WHAT THE CITY'S PLANS ARE ON THAT, OR, OR IS THAT SOMETHING THAT WE NEED TO, UH, KEEP OFFLINE? UM, WE ARE GOING TO EXPLORE THE POSSIBILITY OF SETTLEMENT.
UH, RIGHT NOW WE'RE STILL PROCEEDING WITH THE APPEAL.
THERE FRANKLY, ISN'T MUCH MORE DETAILED THAN WHAT CAME OUT AFTER THE OPINION AT THIS POINT.
I THINK IN ANTICIPATION OF THAT COUNCIL MEMBER, POLLARD, WHEN WE TALK ABOUT A, A PUBLIC SAFETY EXCEPTION, I, I'D GO AHEAD AND ADD AN INFRASTRUCTURE ON THERE TOO, IF WE'RE GOING TO THE VOTERS.
AND, UH, YOU MAY HAVE ALREADY SAID THIS, SO I APOLOGIZE.
UM, BUT THIS IS THE LAST MEETING WE'RE GOING TO HAVE WHERE WE HAVE BOTH THE CONTROLLER AND OUR DIRECTOR OF FINANCE PRESENT BEFORE, UH, WE TAKE A VOTE ON THE CITY'S BUDGET.
UH, UH, FIRST I'LL ASK TO, UM, COUNCIL MEMBER POLLARD'S QUESTION ABOUT THE DRAINAGE FEE, UH, CITY ATTORNEY.
I UNDERSTAND BASED ON WHAT YOU'RE SAYING, THAT NO AGREEMENT HAS BEEN REACHED.
BUT HAS THERE BEEN A CHANGE IN THE ACCOUNTING OR THE RESERVES FOR, FROM THE BUDGET AS IT RELATES TO THE POTENTIAL PRICE TAG OF A HUNDRED MILLION DOLLARS? NO, THERE'S NOTHING IN THE PROPOSED BUDGET THAT CONTEMPLATES DOING ANYTHING THAN WHAT OUR HISTORICAL PRACTICE HAS BEEN.
AND AS IT RELATES TO, UH, THE, THE LAW, THE SETTLEMENT WITH, UH, THE FIREFIGHTERS ASSOCIATION, UM, IN, IN THIS COMMITTEE, IN OUR JOINT LABOR FINANCE COMMITTEE MEETINGS, UH, WE HAD ASKED QUESTIONS PERTAINING TO THE CBA, THE FIVE YEAR AGREEMENT, LOOKING FORWARD, NOT THE BACK PAY, BUT I'LL REFERENCE IT AS THE CBA AGREEMENT.
UM, WE DID NOT AS COUNSEL RECEIVE IT UNTIL, UH, YESTERDAY AROUND 11:00 AM UH, AGAIN, THE BUDGET HAS NOW BEEN SET ON AGENDA FOR THIS WEDNESDAY CONTROLLER, UH, HAD, WHEN DID YOU RECEIVE A COPY OF IT? UH, I TOO RECEIVED A COPY OF THE CBA YESTERDAY, I THINK LATER THAN YOU
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ALL RECEIVED IT, PROBABLY IN THE ONE OR 2:00 PM HOUR.AND, UH, HAVE YOU HAD TIME TO ASSESS WHAT THE FINANCIAL IMPLICATIONS OF THAT MAY BE? AS OF THIS MOMENT, I HAVE NOT.
AND, UH, DIRECTOR DEBOWSKI, GIVEN THE CBA, WE HAD ASKED QUESTIONS IN PREVIOUS COMMITTEE MEETINGS ABOUT THE FINANCIAL IMPLICATIONS OF THE FIVE YEAR AGREEMENT, AND THERE WERE SPECIFIC QUESTIONS WE ASKED THAT WERE STILL BEING CALCULATED OR BECAUSE THINGS MAY CHANGE, THOSE NUMBERS WERE NOT PUT FORWARD.
HAS THERE BEEN ANY CHANGE IN THOSE, UH, CALCULATIONS AS IT PERTAINS TO WHAT IS NOW BEING PROPOSED IN THE BUDGET? SO WHAT'S BEING PROPOSED IN THE BUDGET, UM, PERTAINING TO THE CBA, YOU SEE THAT THE 10%, UM, INCREASE TO THE BUDGET BASE PAY AMOUNT THAT'S IN THE PROPOSED BUDGET.
THAT'S IN THE DRAFT CBA OR THE PROPOSED CBAI GUESS I CAN CALL IT NOW.
UM, AND THEN PERTAINING TO THE SPECIAL PAYS AND OTHER PAYS, UM, IN THE BUDGET, WE HAVE APPROXIMATELY $10 MILLION FOR THOSE.
UM, OUR ESTIMATE AT, AT THIS POINT, UM, IN THE, IN THE AGREEMENT IS IT'S ABOUT 10 MILLION PLUS PENSION AND FICA.
SO IT COMES OUT TO AROUND 13 MILLION.
UM, SO IN ORDER TO MANAGE WITHIN THE BUDGET, YOU KNOW, WE, WE ALREADY CAN FORESEE THAT WE'RE GOING TO HAVE, UM, SIMILAR TO PAST YEAR SAVINGS IN BUDGETED BASE PAY FOR FIREFIGHTERS BECAUSE, UM, OUR, YOU KNOW, OUR HEADCOUNT IS NOT NOT QUITE WHERE WE WANT IT TO BE.
UM, SO THE FIRE DEPARTMENT IS CERTAINLY GONNA HAVE TO, YOU KNOW, MANAGE WITHIN THEIR BUDGET BASED ON THAT, YOU KNOW, THAT VARIANCE.
SO, BUT NOTHING HAS CHANGED OR SHIFTED FROM THE TIME THAT WE WERE ASKING QUESTIONS AND THE BUDGET WAS SET TO WHEN THE FINAL CBA WAS SIGNED.
DO YOU HAVE A QUESTION ABOUT A, LIKE A CERTAIN PARTICULAR ITEM OR, WELL, GIVEN I HAD JUST RECEIVED IT.
YESTERDAY AROUND 11:00 AM I, I TOO HAVE NOT HAD THE CHANCE TO FULLY READ THROUGH IT, SO WE'LL, I KNOW BE HAVING INDIVIDUAL, UH, BRIEFING OPPORTUNITIES.
'CAUSE THERE WAS AN UN, YOU KNOW, THERE WERE UNDETERMINED COSTS, RIGHT.
SO POTENTIALLY WITHIN THE FIVE YEAR MM-HMM
AND NOW WE HAVE THE FIVE YEAR AGREEMENT.
SO I'M WONDERING IF THAT HAS BEEN ACCOUNTED FOR.
THE $10 MILLION THAT'S IN THE BUDGET IS REFLECTIVE OF WHAT IS IN THE PROPOSED CBA.
SO IT'S, WE CAN, WE CAN TALK MORE OFFLINE ABOUT THE, THE SPECIFIC DETAILS, BUT I WOULD SAY THAT THE, THE 10 MILLION IS, THAT'S IN THE BUDGET IS IN LINE WITH WHAT'S PROPOSED.
BUT IT COULD BE THE 10 MIL, IT COULD BE MORE THAN THE 10 MILLION WITH PENSION AND FICA.
SO WE ACCOUNTED FOR 10 MILLION, BUT IT COULD BE 13 MILLION.
UM, A A AS MY, MY QUESTIONS MORE SO ABOUT THE, UH, PROPOSED DRAINAGE FEE, BUT SINCE WE'RE TALKING ABOUT THE CBA, JUST AS A, UM, A, A QUICK GLANCE, I THINK IT'S, UH, ARTICLE EIGHT SECTION, SECTION TWO TWO HAS CHANGED, WHICH I WAS GLAD TO SEE, WHICH NO LONGER, UM, UH, LIMITS THE, THE, THE FIRE CHIEF IS SELECTED FROM THE CURRENT RETIRED RANK AND FILE OF HOUSTON FIRE.
UM, SO THAT WAS THE ONLY THING I SAW THAT WAS CHANGED.
IT WAS LITERALLY, IT'S THE SAME THING, BUT THAT'S NEITHER HERE NOR THERE.
SO MY QUESTION WITH THE, THE DRAINAGE FEE, SO I KNOW WE'RE NOT DONE WITH THE STUDY, BUT YOUR, YOUR POINT AROUND THE A HUNDRED MILLION DOLLARS, IT TAKES A SUBSTANTIAL AMOUNT OF TIME BEFORE THAT RESTRICTED ACCOUNT CAN, UM, FOR SOLID WASTE TO OPERATE ON ITS OWN.
SO THE A HUNDRED MILLION DOLLAR, THAT'S NOT WHAT'S PROPOSED FOR FISCAL 26.
WHAT'S THE FULL TIMELINE? UM, THAT WE ANTICIPATE SOLID WASTE OPERATING ON ITS OWN WITH THIS RESTRICTED ACCOUNT IN ITS FEE? SO I THINK WITH THE SOLID WASTE, UM, WITH THE FEE, WE DON'T NECESSARILY HAVE TO MOVE STRAIGHT TO AN ENTERPRISE FUND WHERE IT'S COMPLETELY SELF-SUSTAINING.
SO WHAT WE'RE TALKING ABOUT IS THE DIFFERENCES BETWEEN AN ENTERPRISE FUND AND A SPECIAL REVENUE FUND WHERE WITH SPECIAL REVENUE FUNDS, REVENUES DEDICATED TO THOSE SERVICES COME IN AND PAY FOR THOSE SERVICES.
AND THE GENERAL FUND COULD STILL SUPPLEMENT.
UM, SO PART OF THE FEE STUDY IS LOOKING AT HOW MUCH WOULD THE FEE HAVE TO BE TO PROVIDE THE SERVICES NOW, BUT ALSO AS I MENTIONED TO COUNCIL MEMBER POLLARD, UM, IMPROVEMENTS TO SERVICES THAT WE WANNA SEE.
AND THE, GENERALLY THE AMOUNT OF GENERAL FUND SPENDING IN THE OPERATING BUDGET FOR THE SOLID WASTE DEPARTMENT IS ABOUT A HUNDRED MILLION DOLLARS.
SO IF YOU SET A FEE SUFFICIENT TO FULLY COVER THOSE COSTS, IT WOULD FREE UP A HUNDRED MILLION DOLLARS OF GENERAL FUND TO SPEND ON GAP CLOSING OR SOME OTHER INITIATIVE.
BUT THE TIMELINE FOR THAT, SO IF WE'RE, YOU KNOW, WE'RE GOING INTO
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25 MM-HMMTHE, THE STUDY WON'T BE COMPLETE UNTIL MIDYEAR SOMETIME.
SO THEN FOR 26, UM, WITH THAT FEE, WHATEVER COLLECTION RATE WE RECEIVE FROM THAT FEE, UH, THEN WE'RE ANTICIPATING WHAT A FULL ACTUALIZATION IN 27.
LIKE WHAT'S THE REAL TIMELINE WHERE WE CAN SEE WHERE WE'RE EITHER A SPECIAL REVENUE SUPPLEMENTED BY GENERAL FUND AND THEN WE TRANSITION TO POSSIBLE ENTERPRISE.
LIKE WHAT'S THE REAL, I WOULD SAY THAT WE COULD HAVE A FULL YEAR OF COLLECTIONS IN FY 26 AND EVEN START AS EARLY AS SOMETIME DURING FY 25.
WE HAD A QUESTION PREVIOUSLY REGARDING THE ADDITIONAL PAY RAISES TO THE FIREFIGHTERS BASED UPON ADDITIONAL REVENUE.
HAS THERE BEEN SOME SPECIFICITY NOW AS TO WHAT QUALIFIES AS ADDITIONAL REVENUE THAT WOULD TRIGGER THE ADDITIONAL PAY RAISES? IT, IT'S NOT ADDRESSED IN THE PROPOSED AGREEMENT.
SO HOW DO WE KNOW IF WE TRIGGER THE ADDITIONAL PAY RAISES? SO I THINK THAT STILL HAS TO BE DETERMINED BETWEEN THE, BETWEEN THE UNION AND THE CITY.
BUT IF WE'RE TO VOTE, UH, MY, MY QUESTION IS TO FOLLOW UP ON COUNCIL MEMBER FLICKINGER, BUT IF WE'RE TO VOTE ON A, A BUDGET THAT, UH, HAS THESE PERCENT INCREASES IN IT, RIGHT? THIS, THIS FIVE YEAR CBA, AND THERE ARE TRIGGERS TO, TO PUSH IT FROM EITHER THREE TO SIX, I MEAN THAT 3% IS A, A LARGE AMOUNT OF MONEY.
WHAT ARE, HOW ARE WE TO KNOW WHAT THOSE TRIGGERS WILL BE? WHO MAKES THAT DETERMINATION? IS THAT SOMETHING THAT YOU ALL ARE NEGOTIATING STILL ON THIS? YES.
IT, IT, IT, IT, I THINK WE CAN HAVE MORE SPECIFICITY ONCE WE HAVE MORE SPECIFICITY ON THE, UH, THE INCREASED REVENUE MEASURES.
I THINK FOR THE COMING BUDGET FOR THE NEXT YEAR, WE HAVE THE 10% AND, AND THAT IS SET.
BUT SHOULDN'T THAT BE ALSO BAKED INTO THE, THE, THE PROPOSED CBA THAT CAN, THAT HAS BEEN PRESENTED, THAT THERE IS PROVISIONS WITHIN THAT THAT TALK ABOUT WHAT ARE THE, UH, PARAMETERS AROUND THE TRIGGERS? BECAUSE IF NOT, THEN IT, IT IS SUBJECTIVE AND WE CAN HAVE INCREASED SALES TAXES OR WHATEVER, WHO KNOWS? AND IT, IT TRIGGERS IT, RIGHT? SO, SO HOW CAN, HOW CAN WE HAVE A COMPLETE PROPOSED CBA WITHOUT KNOWING THOSE PROVISIONS? I THINK THE PLAN WAS TO BE ABLE TO, TO AMEND IT, UM, IN ORDER TO HAVE THAT SPECIFICITY ONCE WE HAVE A, A MORE SPECIFICITY ON THE REVENUE MEASURES.
WELL THEN THAT MEANS WE'LL HAVE TO VOTE ON SOMETHING THAT WE DON'T KNOW WHAT, WHAT THE FINAL TERMS ARE UNTIL AFTER THE FACT AT AT LEAST YES.
YOU, YOU WOULD BE ASKED TO VOTE ON SOMETHING WITH THE, WITH THE UNDERSTANDING THAT, AND WE COULD HAVE LANGUAGE IN THERE THAT IT WILL COME BACK ONCE THERE'S MORE SPECIFIC REVENUE MEASURES AND IT, AND A CALCULATION.
SO THE, THE CONTROLLER PUT OUT A PRESENTATION ABOUT A MONTH OR SO AGO THAT HAD SIX SCENARIOS, UH, REGARDING THE FIREFIGHTER, UM, BACK PAY.
AND WITHIN HIS SCENARIOS HE DETAILED OUT THAT THE SETTLEMENT COULD BE SOMEWHERE BETWEEN 110 MILLION AND 380 MILLION.
YOU ALL HAVE SEEN THAT PRESENTATION DIRECTOR.
WHAT ARE YOUR THOUGHTS ON THOSE PROJECTIONS AND, UH, HOW HE AND HIS TEAM PUT TOGETHER FORMULAS AND CALCULATIONS TO GET THERE? MM-HMM
I THINK THAT WHAT WE HAD TALKED ABOUT IN SOME OF THE PREVIOUS, UM, JOINT COMMITTEES, UM, AND I THINK THE CITY ATTORNEY CAN SPEAK MORE ELOQUENTLY THAN I CAN ON IT PERTAINS TO THE, THE PRIVATE SECTOR PAY STANDARD AND THE, THE POSSIBILITY THAT WHAT THE FIREFIGHTERS, UM, THOUGHT THEY WERE OWED UNDERNEATH THE PRIVATE SECTOR PAY STANDARD WAS, YOU KNOW, UP TO THAT $1.2 BILLION NUMBER THAT WE HAD TALKED ABOUT.
WHICH IF WE HAD TO FINANCE THAT $1.2 BILLION OVER TIME, IT WOULD, YOU KNOW, OBVIOUSLY INTEREST COSTS WOULD SUBSTANTIALLY INCREASE THOSE PAYMENTS.
UM, AND THROUGH THE NEGOTIATION PROCESS, THE, YOU KNOW, THAT'S HOW WE GOT DOWN TO THE 650 MILLION.
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COUNCIL MEMBER THOMAS.AS A FOLLOW UP TO THE, UM, TO THE BUDGET.
I KNOW WE'RE TALKING ABOUT THE, NOW IT WAS 10, NOW $13 MILLION IN INCENTIVES AND THE 10% INCREASE FOR THE RAISE, BUT THERE'S ALSO THE $32 MILLION DEBT SERVICE THAT'S BAKED INTO THIS ALREADY, RIGHT? APPROXIMATELY 30 MILLION.
UM, ANTICIPATING THAT THIS ITEM PASSES, SO IF THIS ITEM PASSES, HOW ARE WE GOING TO ISSUE THE BACK PAY, THE BACK PAYMENT A CHECKS? I MEAN, IS IT A ONE TIME CHECK OR IS THIS OVER TIME AND WHAT'S THE PERIOD OF TIME? AND THEN DO WE HAVE AN OPPORTUNITY TO GO BACK? BECAUSE IF OUR FINANCIAL GAP, IF WE'RE ANTICIPATING A QUARTER OF MILLION FOR FISCAL 26, IF WE HAVE AN ACTIVE HURRICANE SEASON AND WE NEED TO MOVE, HAVE OUR LIQUID DOLLARS, LIKE HOW ARE WE, UM, ARE WE GONNA BE ABLE TO AMEND WHAT WE'VE ALREADY AGREED IN ORDER TO RENEGOTIATE THIS? SO I THINK THE CITY ATTORNEY CAN CORRECT ME, BUT THE, THE JUDGMENT AND THE SETTLEMENT AGREEMENT CONTEMPLATES THAT THE PAYMENTS TO THE FIREFIGHTERS WILL BE, UM, HAPPENING ON OR BEFORE JULY 25TH, 2024.
UM, THE COMPLETE PAYMENTS, NOT THE ISSUANCE OF ONE OF THE FIRST, THE COMPLETE YES.
SO MY CONCERN IS THAT THAT'S GONNA TRIGGER A MASS EXODUS FROM THE HOUSTON FIRE DEPARTMENT.
'CAUSE IF I'M GONNA WALK AWAY WITH A QUARTER MILLION DOLLARS, YOU THINK I'M COMING BACK TO WORK TO DO ANYTHING ELSE? RIGHT.
AND SO I, I, SO THAT CONCERNS ME THAT THESE ARE ONE TIME CHECKS.
UM, AND OUR, AND THE FINANCE DEPARTMENT'S SUPPOSED TO ISSUE THIS BY JULY.
SO WE HAVE BEEN, UH, WORKING ALREADY FOR THE LAST COUPLE, UM, MAYBE MONTHS EVEN AT THIS POINT WITH HR, IT AND PAYROLL TO MAKE CHANGES AND CONFIGURE THE SYSTEM TO SET UP THIS PROCESS.
UM, WE HAVE BEGUN WORKING WITH THE CONTROLLER'S OFFICE ON THE PROCESS TO ISSUE THE BONDS.
IT IS DEFINITELY GOING TO HAVE TO BE, UM, A CONCERTED TEAM EFFORT, UM, BY SEVERAL CITY DEPARTMENTS AND THE FINANCE WORKING GROUP TO ISSUE THE BONDS.
UM, ONCE THIS BODY APPROVES AND THE ATTORNEY GENERAL APPROVES, I MEAN, THERE ARE STILL A LOT OF STEPS IN THE PROCESS AND I THINK THAT THE, UH, THE SETTLEMENT AND THE JUDGMENT, UM, THERE IS LANGUAGE IN THERE THAT SAYS THAT, UH, THE CITY AND THE UNION CAN JOINTLY AGREE TO EXTEND THAT DEADLINE.
UM, YOU KNOW, SHOULD WE HAVE, UM, ISSUES WITH THE TIMELINE.
UM, BECAUSE IT IS, IT IS DEFINITELY GONNA HAVE TO BE A, UH, A CONCERTED EFFORT TO, TO MEET THAT DEADLINE.
ESPECIALLY CONSIDERING WE'RE, YOU KNOW, STILL WORKING WITH THE ATTORNEY GENERAL TO MAKE SURE THAT THE BONDS ARE, YOU KNOW, THAT WE CAN LEGALLY ISSUE THEM.
I MEAN, AGAIN, I, I JUST HAVE HEARTBURN WITH THE POSSIBILITY OF US, UM, ISSUING LARGE PAYMENTS, A POSSIBLE MASS EXODUS.
'CAUSE THIS IS A HUGE PAYDAY FOR MANY FOLKS, AND THERE'S NOTHING WRONG WITH THAT.
UH, BUT THEN I THINK WE'RE GONNA BE STUCK WITH A VERY LEAN FIRE DEPARTMENT, AND THEN WE'LL FIND OURSELVES HAVING CONVERSATIONS ABOUT OUTSOURCING THE REMAINDER BECAUSE WE HAVE TO CUT COSTS.
SO I THINK IT'S LIKE, THAT'S THE STORY I'M TELLING MYSELF.
'CAUSE I THINK THAT'S THE GROUNDWORK THAT'S BEING LAID, LAID OUT.
AND I ASKED SEVERAL OF THOSE QUESTIONS, UM, ABOUT ATTRITION BECAUSE IN, IN THEIR PERFORMANCE MEASURES, THEY, THEY LAID OUT, THEY WOULD STAY STEADY.
AND I'M LIKE, JUST LIKE YOU, LIKE GET A BIG OLD CHECK, YOU MIGHT BE OUT THE DOOR.
UH, THE, THE RESPONSE, ONE OF THE RESPONSES I GOT BACK WAS SINCE THERE'S A 10% INCREASE IN THAT FIRST YEAR TO BASE PAY, WHICH WILL AFFECT FIREFIGHTER PENSIONS, THE, THE, THIS, THE, THE LUMP SUM DOESN'T AFFECT THE PENSIONS, BUT THAT 10% INCREASE AND THEN THE PENSIONS ARE BASED ON YOUR LAST SALARIES.
SO THERE WAS A, A, A FEELING THAT PEOPLE WILL STICK AROUND FOR THE OKAY.
FOR THE INCREASE FOR A FEW YEARS.
TO GET THOSE LAST THREE YEARS.
THAT WAS ONE OF THE ANSWERS I, I, I GOT.
BUT I, I HAVE YOUR SAME CONCERNS ABOUT SURE.
UM, COUNCIL MEMBER, UH, UH, DEE WITH COUNCIL MEMBER MY, WITH MAYOR PRO TEM CASTEX TATUM.
THANK YOU CONTROLLER AND DIRECTOR DEBOSKY FOR YOUR PRESENTATIONS.
UM, MAYOR PROTE IS WATCHING ONLINE.
UM, THIS QUESTION IS, UM, REFERENCED TO ATTORNEY MICHELLE.
SO CONSIDERING THE, UM, BACK PAY, UH, TO THE FIREFIGHTERS, UM, THAT COULD POTENTIALLY TAKE 20 TO 25 TO 30 YEARS TO PAY BACK, UM, COULD YOU, WHAT, WHAT WOULD IT TAKE TO ASK THE VOTERS TO APPROVE THE CBA AGREEMENT AGREEMENT'S, FINANCIAL IMPACT? UM, CAN WE TAKE THIS AGREEMENT TO THE VOTERS? I, I DON'T THINK YOU, YOU COULD, BECAUSE YOU CANNOT HAVE ADVISORY ELECTIONS IN TEXAS.
THE CASE LAW IS PRETTY CLEAR ON THAT.
YOU'D HAVE TO DO SOMETHING LIKE, UH, PAY FOR IT WITH A BOND ISSUANCE
[00:30:01]
THAT REQUIRES VOTER APPROVAL.BUT THAT COULD NOT OCCUR ANY EARLIER THAN NOVEMBER.
AND I, I DON'T THINK WE'D HAVE A DEAL.
I THINK THE COURT WOULD PUT US BACK ON THE DOCKET AND WE'D BE TRYING AT LEAST ONE OF THE YEARS, IF NOT MORE.
MICHELLE, YOU HAD MENTIONED PREVIOUSLY THAT THE, THE BACK PAY SETTLEMENT WAS DONE THROUGH A PUBLIC SECTOR STANDARD.
THERE WAS ALWAYS A QUESTION IF IT WAS PRIVATE OR PUBLIC, BUT TO GET A DEAL DONE, BOTH SIDES AGREED TO GO TO A PUBLIC SECTOR STANDARD.
IS THAT ACCURATE? THAT'S HOW WE APPROACHED IT.
UH, YOU KNOW, THE, THE, THE LINE BETWEEN PUBLIC AND PRIVATE IS NOT THAT CLEAR, BUT YES, THAT'S HOW WE APPROACHED IT.
AND SO THE CONTROLLER PUT OUT SCENARIOS RECENTLY WHERE HE USED A PUBLIC SECTOR STANDARD WHERE HE SAW OR LOOKED AT FIVE OR SIX LARGE CITIES IN TEXAS.
SAW WHAT THEY WERE MAKING AND THEN DID A COMPARABLE TO, TO, UH, THE CITY OF HOUSTON.
NOW WE JUST LOOK AT PUBLIC SECTOR 'CAUSE WE'RE, WE'RE NOT LOOKING AT PRIVATE ANYMORE.
'CAUSE THE, THE DEAL HAS BEEN NEGOTIATED WITH PUBLIC SECTOR, UH, FRAMEWORK.
WHAT FORMULA DID WE USE TO COME UP WITH A $650 MILLION FIGURE, BECAUSE THAT'S AN EXACT NUMBER.
SO JUST LIKE HE SHOWED SCENARIOS WITH CALCULATIONS USING THE PAY OF THE OTHER CITIES.
IF WE'RE USING THE PAY OF THE OTHER CITIES, WHAT FORMULA DID WE USE? AND HOW IS THERE SUCH A LARGE GAP? WELL, A COUPLE THINGS.
ONE, I THINK WHEN YOU LOOK AT, UH, YOU CANNOT QUITE, EVEN WITH OTHER COMPARABLE LARGE CITIES DOING APPLES TO APPLES, BECAUSE, UH, OUR, WE HAVE A SPECIAL OVERTIME STATUTE THAT APPLIES DIFFERENTLY TO US.
SO IT IMPACTS, YOU KNOW, THE HOURS PRACTICALLY THAT CAN BE WORKED.
THE OTHER THING THAT HAPPENED IS THAT WE LOOKED AT, UM, YOU KNOW, THE OTHER LARGE CITIES IN THERE AND TRIED TO FIND SOMETHING IN THAT RANGE.
BUT, UH, THIS WAS FRANKLY A MEDIATION IN A NEGOTIATION WHERE I THINK THE DRIVERS, AND I ASSUME FOR BOTH SIDES WITH THE UNION, WERE OUR EXPERT CALCULATIONS ON WHAT, WHERE THEY THOUGHT THIS COULD LAND.
YOU KNOW? AND LIKE, UH, AS YOU KNOW, COUNCIL MEMBER, YOU KNOW, YOU, YOUR EXPERTS WILL, YOU PRESS YOUR EXPERTS TO SEE HERE'S WHERE THEY THINK A COURT SHOULD BE, BUT THE POSSIBILITY THAT IT COULD BE HIGHER OR MUCH HIGHER.
SO THAT'S REALLY WHERE THIS CAME IN.
WE FELT THAT THE SIX 50, UM, WOULD PREVENT A, A CATASTROPHIC SITUATION IF WE WERE TO GO TO COURT AND WAS COMP.
BUT IF YOU, IF YOU DO GO TO COURT AND YOU USE YOUR EXPERTS, YOUR EXPERTS WOULD HAVE TO BE ABLE TO DIAGRAM THE, THE, THE FORMAT OR THE FORMULAS THEY USE TO GET TO THE NUMBER.
YOU WOULDN'T, THEY WOULDN'T JUST PICK 1.2 OUT OF, OUT OF, OUT OF THIN AIR.
SO WHAT I'M SAYING IS WHAT DID OUR EXPERTS COME BACK WITH THEN? MM-HMM
AND MAYBE WE CAN TALK ABOUT THAT OFFLINE, BUT IF WE SETTLED AT SIX 50, DID OUR EXPERTS COME BACK LOWER AND THEIR EXPERTS CAME BACK MUCH HIGHER AND WE MET AT SIX 50, THAT, THAT'S EFFECTIVELY WHAT HAPPENED.
BUT, UH, NO, YOU ARE OF COURSE CORRECT.
AND WE, I CAN TALK TO YOU ABOUT THAT OFFLINE BECAUSE UNTIL THIS IS SETTLED, WE MAY HAVE A TRIAL COMING UP AND I WANNA MAKE SURE THAT WE HAVE THE CONFIDENTIALITY WE NEED AT THIS POINT.
IS THERE ANY PRIVATE SECTOR COMPARISON THAT WE KNOW OF? I MEAN, THE FIREFIGHTERS WORK 24 HOUR SHIFTS.
WE PROVIDE 'EM BEDS TO SLEEP WHENEVER THEY CAN, IF THEY CAN.
UH, IS THERE ANYTHING IN THE PRIVATE SECTOR LIKE THIS AT ALL THAT WE KNOW OF? I THINK MOST, UM, MUNICIPAL LAWYERS WHO DEAL IN THIS REALM WOULD SAY THERE REALLY ISN'T QUITE THE SAME.
YOU HAVE FIRE SUPPRESSION UNITS, FOR EXAMPLE, IN, UM, THE SHIP CHANNEL.
YOU HAVE IT, YOU KNOW, FERTILIZER PLANTS IN WEST TEXAS.
BUT IN TERMS OF THE, THE MAGNITUDE AND WHAT THEY DO DAY TO DAY, IT'S HARD TO SAY.
I MEAN, MOST PEOPLE FIND THIS TO BE A PUZZLING STANDARD.
DO WE KNOW RIGHT NOW, UH, AS WE APPROACH THIS ITEM THAT'S ON THE, UH, AGENDA REGARDING THE BACK PAY OF 650 MILLION, IF IT WILL BE A 25 YEAR, UM, TERM OR A 30 YEAR TERM? SO THAT'S SOMETHING THAT, UM, WE'LL BE WORKING WITH THE CONTROLLER'S OFFICE ON AS WE STRUCTURE THE BOND.
UM, I THINK THE PROPOSALS THAT WE PUT OUT ON THE BUDGET AND FISCAL AFFAIRS COMMITTEE WAS IN THE RANGE OF 25 YEARS.
AS IT RELATES TO THE, UM, SETTLEMENT AGREEMENT, CITY ATTORNEY, UH, I BELIEVE THAT,
[00:35:01]
UH, AS PREVIOUSLY DISCUSSED, UH, THE CITY HAS AGREED TO PAY ALL OF OPPOSING COUNSEL'S LEGAL FEES TO THE TUNE OF APPROXIMATELY $6 MILLION.IS THERE ANY SETTLEMENT WITHIN RECENT YEARS, LET'S SAY THE PAST FIVE YEARS, WHERE THE CITY IN A SETTLEMENT AGREEMENT HAS PAID FOR OPPOSING COUNSEL'S LEGAL FEES? I THINK THIS WAS STRUCTURED SEPARATELY IN, IN PART, TO BE ABLE TO, UM, HAVE THE OVERTIME BE THE OVERTIME WE, WHEN WE SETTLE, TYPICALLY, YOU KNOW, UNLESS THERE'S A SEPARATE ATTORNEY'S FEES PROVISION LIKE YOU HAVE IN CIVIL RIGHTS CASES, IT, IT, IT COMES OUT OF THE PAYMENT THAT'S MADE THERE.
UM, WE DIDN'T PAY ALL OF THEIR FEES.
WE NEGOTIATED, UH, YOU KNOW, WHAT, WHAT WE HAD HERE, UM, BACK IN 2004, THE CITY SETTLED A FIREFIGHTER OVERTIME CLAIM FOR I THINK THE, IT WAS LIKE 72 MILLION THAT WAS BEING PAID.
AND I BELIEVE THAT THERE WAS A, A, A CONTINGENCY, UM, AGREEMENT WITH THAT THE UNION HAD WITH ITS LAW FIRM.
SO I THINK WE, WE, WE HAD, AND THAT WAS A SUBSTANTIAL AMOUNT.
THAT'S THE ONE THAT COMES TO MY MIND.
SO ABOUT 10 YEARS AGO, ANOTHER FIREFIGHTER DISPUTE IS THE TIME WHEN WE HAVE PAID OPPOSING COUNSEL'S LEGAL FEES.
AND THE REASON I ASK IS, AND OTHER ATTORNEYS CAN SPEAK TO THIS, UM, YOU'VE HAD MUCH MORE YEARS OF PRACTICE THAN I, UH, SO I DON'T IN ANY WAY PURPORT TO HAVE THE EXPERIENCE THAT YOU HAVE.
UH, BUT I HAVE NEVER IN A SETTLEMENT, UM, WHEN WE'RE IN LITIGATION, SEEN OPPOSING COUNSEL, UH, OR THE OTHER PARTY PAYING FOR THOSE ATTORNEY'S FEES AND ESPECIALLY TO THE TUNE OF 6 MILLION.
SO I, AGAIN, I, I JUST, I APPRECIATE, UM, THE EXPLANATION.
AND JUST SO I HEARD CORRECTLY, THE ONLY OTHER TIME WHERE THIS HAS BEEN STRUCTURED IN THAT WAY WAS ANOTHER DISPUTE WITH THE FIREFIGHTERS.
IS THAT CORRECT? UH, I, I CAN RESEARCH TO SEE IF THERE HAVE BEEN OTHER INSTANCES, BUT THAT'S THE ONE THAT COMES TO MY MIND RIGHT NOW.
I WILL ASK, UM, COLLEAGUES THAT WE TRY TO KEEP THIS AS MUCH, UM, FINANCIAL, UH, RELATED TO THE CITY, AND IT'S ALL RELATED TO THE CITY'S FINANCES.
UM, AND NOT SPECIFICALLY ABOUT, UM, UH, MEASURES WITHIN THE, THE CBA.
WE CAN DO THAT, UM, WHEN WE HAVE OUR BRIEFINGS, BUT, UM, UH, AS LONG AS THE QUESTIONS RELATE TO THE CITY'S FINANCIAL POSITION, UH, COUNCIL MEMBER RAMIREZ, WELL, UH, COUNCIL MEMBER CAYMAN ASKED ABOUT PAYMENT OF, UM, LEGAL FEES.
DO, DO YOU CONSIDER THAT SORT OF OUTSIDE THE SCOPE? I'LL, I'LL LET THAT GO.
UM, SO QUESTION TWO, UH, OUR CITY ATTORNEY, UH, THE PAYMENT OF LEGAL FEES FOR OPPOSING COUNSEL WAS, UH, SUBJECT OF NEGOTIATION, RIGHT? YES.
AS WERE ANY NUMBER OF OTHER DIFFERENT PARTS OF THE AGREEMENT.
AM I RIGHT ON THAT? EE EVERYTHING WAS A NEGOTIATED MATTER AND, AND WE'VE BEEN DOWN THIS ROAD BEFORE.
I THINK I USE THE ANALOGY, WHEN YOU BUY A HOUSE, UH, THERE'S ALL SORTS OF THINGS YOU CAN NEGOTIATE FOR IN A, IN A HOUSE PER PURCHASE, ARE THERE NOT? YES.
UM, AND SO WHETHER OR NOT IT'S BEEN DONE BEFORE, IT REALLY DOESN'T HAVE ANY RELEVANCE TO THIS PARTICULAR AGREEMENT, DOES IT? UH, UH, NO.
THIS, UH, YOU KNOW, I THINK THIS WAS HIGHLY UNUSUAL.
WE HAD A NUMBER OF BACK YEARS THAT WE'RE GOING TO BE LITIGATED OR ARBITRATED.
AND SO I THINK THE, THE, THE IMPORTANCE FOR THE CITY WAS TO PUT THE PAST TO REST IN A WAY THAT WAS SEEN AS AFFORDABLE.
AND, UM, AND, AND AGAIN, UH, MADAM CHAIR, IF I'M OUT OF LINE HERE, PLEASE, PLEASE STOP ME.
BUT WITH REGARD TO THE SETTLEMENT, UM, $650 MILLION, IF WE WENT TO TRIAL AND, UM, THE FIREFIGHTERS WERE AWARDED $650 MILLION AT THE END OF A TRIAL BY A JUDGE OR JURY, UH, WHEN WOULD THAT BE DUE THAT $650 MILLION? WHEN WOULD THE CITY HAVE TO PAY THAT? SORRY.
UH, IT WOULD BE DUE WHEN THE, WHEN THE LITIGATION CONCLUDED.
YOU KNOW, IF, IF THE CITY APPEALED, IT COULD GO ON THEN, BUT AT THE POINT THAT YOU HAVE A FINAL JUDGMENT THAT'S NO LONGER APPEALABLE, UH, IT WOULD BE DUE, IT WOULD BE DUE AT THAT TIME.
AND HOW WOULD THE CITY PAY IT? UH, IT WOULD, UH, I THINK THE ONLY WAY IT COULD PAY IT, UH, IN SHORT ORDER WOULD BE TO DO A REFUNDING JUDGMENT BOND.
AND WHILE THAT PROCESS IS GOING ON, THERE WOULD BE INTEREST COSTS, WOULD THERE NOT JUDGMENT INTEREST? YES.
WHAT, WHAT IS JUDGMENT INTEREST? IS THERE A FLAT RATE FOR THAT STANDARD RATE? UH, IT, IT DEPENDS.
IT KIND OF VARIES ON WHAT IT COULD BE RIGHT NOW.
I THINK RIGHT NOW IT'S A LITTLE HIGHER THAN, THAN IT HAS BEEN IN PAST YEARS.
I THINK IT'S IN THIS 7% RANGE MAYBE, MAYBE SEVEN POINT SOMETHING.
AND, AND THAT'S, IF THE VERDICT WERE EXACTLY THE AMOUNT THAT'S BEEN AGREED UPON, UH, HERE, UH, BUT IF THE
[00:40:01]
JUDGMENT WAS, YOU KNOW, ON THE ORDER OF $1.2 BILLION, THEN THE CITY WOULD BE IN A MUCH WORSE POSITION THAN IT WOULD BE IF WE PASSED THIS AGREEMENT.UH, THIS WAS A COMPROMISE SETTLEMENT WHERE BOTH SIDES WOULD'VE PREFERRED THAT THE NUMBER MOVE IN THEIR DIRECTION, BUT THIS IS WHERE WE ENDED UP.
HOW LONG HAVE YOU BEEN DEALING WITH THIS LITIGATION? UM, SINCE WHEN I RETURNED TO THE CITY IN 2021.
SAFE TO SAY YOU'RE FAMILIAR WITH THE INS AND OUTS, UH, PROS AND CONS OF THIS AGREEMENT, ARE YOU NOT? I AM.
BACK IN THE QUEUE, OR, UM, AND, AND I SUSPECT YOU'VE GOT OTHERS ON YOUR STAFF AND ACCESS PERHAPS TO EXPERTS WHO ARE ALSO FAMILIAR WITH, UH, WHAT COULD HAPPEN, YOU KNOW, IF WE WERE ON THE HOOK FOR $1.2 BILLION? YES.
I MEAN, WE, WE'VE HAD EXPERTS CALCULATE, AND OF COURSE THE FINANCE DEPARTMENT WOULD BE WELL AWARE OF, OF WHAT THE COST WOULD BE OF A, OF A, IF THERE WERE A JUDGMENT OR AN ARBITRATION AWARD THAT WERE HIGHER THAN THE SIX 50.
I THINK THAT WRAPS UP OUR QUESTIONS.
WE DO WARMS MY HEART TO SEE DOUG SMITH OUT IN THE AUDIENCE.
SO WE DO HAVE A PUBLIC SPEAKER.
AND, UH, SO IF YOU, UM, THANK YOU CONTROLLER AND DIRECTOR.
WE REALLY APPRECIATE YOUR WORK.
SHOULD BE LOTS OF EXCITING DISCUSSION COMING UP.
DOUG CAME TO OUR BUDGET TOWN HALL.
I WAS SO HAPPY THE NIGHT OF THE DERECHO STORM, AND I TOLD HIM HOW MUCH WE MISSED HIM DURING THE WORKSHOPS, BUT HE'S HERE.
SO LET, LET US, LET US HAVE IT, DOUG.
IT'S GOOD TO SEES HEAR IT'S, SEE YOU AGAIN.
UM, I HAD, UH, A COUPLE OF QUESTIONS ON THE MONTHLY FINANCIAL REPORT, BUT AFTER LISTENING TO THIS DISCUSSION, I'M GONNA LET THOSE GO BECAUSE I JUST WANTED TO REMIND YOU ALL OF THE COMMENT THAT I MADE, OR COMMENTS THAT I MADE ABOUT A MONTH AGO AT A CITY COUNCIL MEETING.
HE HAD TO GO OUT FOR SOMETHING ELSE.
BUT YOU'RE ALL TALKING ABOUT, OR HAVE BROUGHT UP THE FACT OF GARBAGE FEES AND, UH, TAKING THE PROPERTY TAX, HAVING A, A INCREASE ON THE PROPERTY TAX.
AND WHAT I SUGGESTED AT THAT MEETING WAS IN GOOD FAITH, I WISH THE CITY WOULD TAKE SOME ACTIONS TO SHOW THE CITIZENS BEFORE THEY TAKE THOSE STEPS.
AND THE THINGS THAT I SUGGESTED WERE, FIRST OF ALL, CHANGE THE PENSION PLAN FOR NEW EMPLOYEES TO DEFINE CONTRIBUTION RATHER THAN DEFINE BENEFIT.
SECONDLY, UH, UH, LOOK AT, UH, THE, UH, TOURS, UH, AREA AND SEE HOW MUCH MONEY, FIRST OF ALL, CANCEL ANY NEW PROJECTS IN ALL OF THE TOURS SO WE CAN PULL MORE MONEY BACK FROM THE TOURS.
AND FINALLY, LOOK AT METRO MONEY.
I THINK PROBABLY YOU COULD PULL BACK A HUNDRED MILLION DOLLARS IN METRO MONEY, UH, TO, FROM THE SALES TAX THAT CURRENTLY IS GOING TO METRO.
AND I DON'T KNOW WHETHER THE MAYOR LISTENED TO THAT AFTER THE FACT, BUT I WOULD JUST LIKE TO REMIND YOU OF THOSE THINGS BECAUSE I THINK CITIZENS DESERVE TO SEE WHAT THE CITY IS WILLING TO DO IF THEY'RE WILLING TO ASK US FOR MORE FEES.
AND REGARDING THE GARBAGE FEE, I THINK IT'S PROBABLY OBVIOUS OR SHOULD BE OBVIOUS TO EVERYBODY, IF YOU CHARGE $20,000,020 A MONTH, WHICH BRINGS IN A HUNDRED MILLION DOLLARS, WHICH THEN CAN BE USED FOR GENERAL FUND EXPENSES, IF YOU DON'T IMPROVE THE CURRENT SERVICE, THEN IT'S GONNA BE WORTHLESS BECAUSE PEOPLE WILL SAY THE HECK WITH IT, I'M GETTING LOUSY SERVICE.
I WILL GO TO A PRIVATE CARRIER TO DO MY TRASH.
SO THOSE ARE THINGS I THINK YOU NEED TO CONSIDER, UH, BEFORE YOU TAKE ANY STEPS, UH, IN THAT AREA.
DOUG IS A DISTRICT F'S FINEST.
UM, SO THE, JUST TO MENTION YOUR TURS PROJECT, SO, UM, I'M A NO AGAINST THAT BECAUSE TURS 20 HAS EXTENDED BOUNDARIES IN DISTRICT F TO DO A SERIES OF INFRASTRUCTURE PROJECTS THAT'S GOING TO ELEVATE WALKABILITY AND CONNECTION, PARTICULARLY REDOING THE ENTIRE DAIRY ASFORD IN FRONT OF HACKBERRY PARK.
UM, FROM BEL AIR TO BENU AS WE GET READY FOR THE $8 MILLION MITIGATION PROGRAM.
UM, UM, THAT IS SOON TO HIT AT THE TOP OF 2025.
AND SO, UM, UH, DISTRICT F WE DON'T HAVE A LARGE FOOTPRINT OF TURS.
WE'VE EXTENDED THOSE BOUNDARIES
[00:45:01]
TO DO A COUPLE OF THINGS, HELP WITH THE INFRASTRUCTURE AND DRAINAGE ALONG BINET AS WE GET READY FOR THE BINET SAFE STREETS PROJECT.SO, YOU KNOW, TOURS, THEY WORK IN TANDEM WITH, UM, OUR LOCAL PRIORITIES AND STOPPING PROJECTS STOPS QUALITY OF LIFE, PUBLIC INFRASTRUCTURE.
AS YOU KNOW, WE NEED INCREDIBLY, UH, A DEEP INVESTMENT ON THE WEST SIDE WITH MANY OF OUR POCKETS.
AND WE DON'T HAVE, WE HAVE NOT HAD IN THE PAST, UM, A DEEP INFRASTRUCTURE PROJECTS.
AND SO TO PAUSE, UH, MEANS TO, UH, PAUSE THE REQUEST OF PEOPLE THAT HAVE BEEN ASKING FOR OVER A YEAR TO GET THESE SIDEWALKS, MITIGATE THIS DRAINAGE, DO SOME REVITAL REVITALIZATION IN THESE PROJECTS.
BUT I THINK TO YOUR POINT, THE DEFINED CONTRIBUTION IS SOMETHING THAT, UH, HOPEFULLY THERE'S AN APPETITE FOR IT.
IT'S IN THE PFM REPORT, I BELIEVE AS WELL.
UM, I THINK THAT'S SOMETHING WE NEED TO HAVE A SERIOUS CONVERSATION ABOUT.
UM, IN ADDITION TO LOOKING AT, UM, WHERE ELSE ARE WE CUTTING? AND, BUT WE CAN'T CUT WITHOUT LAYOFFS.
'CAUSE MAJORITY OF OUR LIFT IT'S PERSONNEL IN THE CITY.
AND SO WHEN WE TALK ABOUT CUTTING BACK AND DEMONSTRATING BACK TO RESIDENTS OUR EFFORT, THAT MEANS A LAYOFF ESSENTIALLY.
UM, AND SO WHEN, WHEN PEOPLE CALLED, WHEN THE 16,000 3 1 1 CALLS HIT DISTRICT F AND THEY SAY, WELL, NO ONE'S ANSWERING MY CALL AND WHY NO ONE CAME OUT TO LOOK AT THIS, INSPECT THIS GRASS AND WHY NO ONE BOARDED UP, WE'RE GONNA GO BACK AND SAY, WELL, WE WANTED TO DEMONSTRATE TO YOU, UM, OUR COMMITMENT TO CUTTING COSTS, WHICH ALSO ULTIMATELY MEANS CONSTITUENT SERVICES.
SO I THINK WE HAVE TO BALANCE THAT CONVERSATION, UM, BECAUSE WE CAN SAY THOSE THINGS, BUT AT THE END OF THE DAY, PEOPLE WANT THESE SERVICES TO GET DONE EXPEDIENTLY.
SO, UM, UH, MADAM CHAIR, WHENEVER WE GET THROUGH BUDGET, WE CAN START EXPLORING SOME OF THAT.
I LOOK FORWARD TO CONTRIBUTING TO THAT CONVERSATION.
INCENTIVE FOR THAT I THINK WILL BE PART OF THE BUDGET DISCUSSIONS.
IN ADDITION TO THE ERNST AND YOUNG, UM, CONSULTANTS THAT ARE COMING IN ON AN ENGAGEMENT TO LOOK FOR EFFICIENCIES IN DEPARTMENTS, UM, THAT WE APPROVED.
I THINK THAT, UM, YOU MAKE A VERY GOOD POINT.
WE DO, WE DO WANT TO SHOW, UM, THE RESIDENTS OF HOUSTON THAT WE ARE OPERATING AS EFFICIENTLY AS WE POSSIBLY CAN.
I'VE HEARD THE MAYOR SPEAK ABOUT METRO MONEY, UM, BEFORE ALSO, UM, COUNCIL MEMBER, UM, THOMAS BROUGHT UP, YOU KNOW, THE TURS, YOU KNOW, THAT THOSE PROJECTS ARE OUTSIDE OF THE, THE REVENUE CAP AND THAT WHAT, BUT FOR THE, THE, THE TOURS IS SOME OF THOSE PROJECTS COULDN'T BE DONE.
BUT I'LL AGREE WITH YOU THAT SOME OF THESE TS AND THIS IS WHY IT PUSHED SO HARD FOR TUR POLICIES TO BE WRITTEN AND IN PLACE.
SOME OF THOSE TS HAVE MET A LOT OF THEIR OBJECTIVES.
WE NEED TO FACE THOSE OUT BECAUSE IN THE FIRST YEAR THAT SOMETHING IS, UH, TAKEN BACK BY THE CITY AND NOT IN A TS YOU DO GET TO COLLECT THAT MONEY.
IT'S, IT'S NOT GONE, IT'S NOT LOST TO THE REV CAP.
'CAUSE IT'S CONSIDERED A RE ANNEXATION, RIGHT? SO I DO THINK THERE'S SOME MONEY THERE ON SOME OF THE OLDER UMTS THAT ARE, HAVE FULFILLED THEIR PROMISES.
UM, SO THANK YOU DOUG, AS ALWAYS, VERY WISE COUNSEL.
UM, AND I, MY APOLOGIES I DID NOT RECOGNIZE COUNCIL MEMBER WILLIE DAVIS HAS BEEN WITH US FOR QUITE SOME TIME, AS WELL AS COUNCIL MEMBER EVAN CHAZZ ONLINE.
AND, UM, THANK YOU COLLEAGUES.
SO, UH, PRETTY MUCH IS, UH, DO YOU HAVE ANY ITEMS THAT YOU CAN PLEDGE AS A SECONDARY SOURCE OF REPAYMENT? RIGHT? UH, THIS COLLATERAL WOULD BE, UM, ANOTHER WAY OF GUARANTEEING THAT YOU'LL REPAY THE LOAN EVEN IF YOU CANNOT MAKE THOSE CASH PAYMENTS.
UM, IF YOU HAVE ANY FINANCIAL ISSUES OR YOU MAY NOT BE ABLE TO OPERATE YOUR BUSINESS OR MEET OTHER EXPENSES OR REPAYMENT OBLIGATIONS.
SO MOST PEOPLE ASK, YOU KNOW, WELL, WHAT, WHAT CAN WE USE FOR COLLATERAL? UM, COLLATERAL WE COULD USE ANYTHING THAT YOU MIGHT USE TO OPERATE YOUR BUSINESS, WHETHER IT'S EQUIPMENT, UM, YOU KNOW, LET, LET'S SAY IF YOU HAVE A RESTAURANT, WE COULD DEFINITELY USE, UM, REFRIGERATORS, UM, YOU KNOW, STAINLESS STEEL, UH, APPLIANCES, UH, STOVES, YOU KNOW, KITCHEN TOPS, ANYTHING THAT YOU MIGHT USE, UM, IN THAT RESTAURANT.
UM, IF YOU'RE A CONSTRUCTION COMPANY, YOU KNOW, IF YOU HAVE ANY, ANY, UH, MACHINERY OR TOOLS, THINGS OF THAT NATURE.
UM, UM, WHEN IT COMES TO COLLATERAL AS WELL, LET'S SAY YOU'RE TRYING TO PURCHASE A PIECE OF EQUIPMENT AND YOU DON'T HAVE ANY COLLATERAL OF YOUR OWN, RIGHT? SO YOU COULD SEND LIFT FUND A PURCHASE ORDER, UH, WE WOULD SEND THE MONEY TO THE VENDOR AND THEN YOU WOULD JUST PAY LIFT FUND BACK, RIGHT? SO, AND THEN WE WOULD USE THAT EQUIPMENT THAT IS GONNA BE PURCHASED WITH THE LOAN AS COLLATERAL TO SECURE IT.
UM, SO LIKE I SAID, UH, HERE, UH, GOING BACK TO THE PRESENTATION HERE, A TANGIBLE BUSINESS ASSETS, UM, ASSETS TO BE PURCHASED WITH THE LOAN PROCEEDS.
UM, IEB GOLD REAL ESTATE CONTRACTS, STOCKS AND BONDS.
UM, CASH VALUE, WE COULD USE ALL THAT.
UM, FOR COLLATERAL, WE USED TO TAKE JEWELRY.
UH, WE NO LONGER DO THAT, UH, JUST 'CAUSE IT IS, UM, YOU KNOW, KIND OF A, A TEDIOUS PROCESS.
UM, AND, AND, AND, UM, AND USING JEWELRY AS COLLATERAL.
UM, BEING IN TEXAS, I DON'T KNOW IF EVERYBODY HERE IS IN TEXAS, UH, BUT WE USED TO
[00:50:01]
TAKE, UM, LIVESTOCK AS COLLATERAL AND, UH, WE STOPPED DOING THAT.UH, 'CAUSE UNFORTUNATELY, UH, FOR ONE LOAN WE DID HAVE TO, UM, YOU KNOW, GO AND COLLECT THE COLLATERAL BECAUSE THEY DEFAULTED ON THE LOAN.
AND, UM, THE, UM, THE BORROWERS HAD ALREADY, UM, EATEN ONE OF THEIR, UH, ONE OF THE, UH, LIVESTOCK THAT THEY USED FOR COLLATERAL.
UM, WE COULD ALSO USE A PERSON TO USE VEHICLES AS LONG AS THEY, AS THEY ARE FREE AND CLEAR.
UM, AND NO OLDER THAN 10 YEARS OLD, UNLESS IT'S A, YOU KNOW, SPECIAL MAKE AND MODEL, THEN WE COULD MAKE SOME EXCEPTIONS WITH OUR UNDERWRITING TEAM.
SO, UM, POSSIBLE, UH, COLLATERAL HURDLES, OUTSTANDING LIENS OR UNPAID TAXES OR INSUFFICIENT COLLATERAL VALUE.
UH, FOR COLLATERAL VALUE, UH, WE DO LIKE TO GO DOLLAR FOR DOLLAR, UM, UH, WITH THE LOAN AMOUNT, SORRY.
UM, BUT WE CAN WORK WITH YOU ON THAT.
UH, TYPICALLY IT'S 70%, UM, WE COULD WORK WITH.
UM, AND IF WE HAVE ANY QUESTIONS ON ANY OF THESE FIVE SEED OF CREDIT, UH, WE'LL, WE'LL OPEN UP THE FLOOR AT THE END, LIKE I SAID, LIKE, LIKE WE SAID.
UM, OKAY, SO CAPITAL, RIGHT? SO WHAT ARE YOU DOING TO SUPPORT YOUR BUSINESS? UH, CAPITAL REPRESENTS, UH, YOUR SAVINGS, YOUR TIME, UH, YOUR MONEY, AND OTHER INCOME SOURCES AND ASSETS THAT YOU MIGHT HAVE PUT INTO THE BUSINESS, UM, THAT CAN HELP YOU REPAY THE LOAN IF YOU HAVE ANY SETBACKS, RIGHT? UM, SO THE PROFE, UH, THE OUR OF US SLIP ON WILL EVALUATE, UH, FINANCIAL STATEMENTS, UH, TO IDENTIFY YOUR RETAINED EARNINGS, UH, YOUR PERSONAL SAVINGS, YOU KNOW, HOW MUCH MONEY HAVE YOU INVESTED INTO THE BUSINESS, UM, UH, BECAUSE WE DO NEED TO SEE, UH, SOME SKIN IN THE GAME, RIGHT? WE CAN'T TAKE, UH, THE A HUNDRED PERCENT, UH, FINANCIAL RISK.
SO YOU DO HAVE TO HAVE AT LEAST, UH, I THINK IT, IT MENTIONS IT IN THE NEXT SLIDE.
UM, WE CAN GO TO THE NEXT ONE HERE.
SO OUR REQUIREMENTS, UH, WE DO REQUIRE A 10% INJECTION, WHEREAS, UM, YOU KNOW, TRADITIONAL LENDERS WOULD REQUIRE 20.
UM, SO WE WILL CONSIDER THOSE ASSETS THAT HAVE ALREADY BEEN PURCHASED, RIGHT? UM, SO IF, LET'S SAY YOU'RE, YOU'RE STARTING A FOOD TRUCK, RIGHT? BUT YOU ALREADY HAVE THE FOOD TRUCK, YOU JUST NEED, UM, EQUIPMENT OR YOU NEED, UH, ADDITIONAL MARKETING OR THINGS OF THAT NATURE, WE WILL CONSIDER WHAT YOU'VE ALREADY PURCHASED, UH, IE THE FOOD TRUCK OR ANYTHING THAT YOU MIGHT USE TO OPERATE IT, UM, AS CAPITAL, RIGHT? FOR THAT STARTUP.
UM, AND THEN WE DO HAVE PROGRAMS THAT HELP US MITIGATE THE NEED FOR THOSE HIGH CAP, UH, CAPITAL REQUIREMENTS, UH, SUCH AS SBA SEVEN A.
AND WE DO WORK WITH THAT QUITE A BIT.
SO LIKE, UH, LIKE EVERYBODY KNOWS HERE, UH, THIS MEASURES THE, THE, THE VIABILITY OF THE BUSINESS, RIGHT? SO CONDITIONS IS, UH, PRETTY MUCH WE JUST WANNA KNOW, UH, WHAT YOU WOULD, UM, PLAN ON USING THE LOAN FOR, YOU KNOW, DO YOU KNOW YOUR MARKET, UH, WHAT CONDITIONS MIGHT AFFECT HOW YOU USE AND REPAY THE LOAN? UM, AND FOR, UH, STARTUPS WHO DO REQUIRE BUSINESS PLANS, FINANCIAL PROJECTIONS, STARTUP PIECE OF FUNDS, JUST BECAUSE WE WANNA MAKE SURE THAT YOU DO HAVE THAT, UH, THAT SOLID, UH, FOUNDATION TO MAKE YOUR BUSINESS SUCCESSFUL.
UM, SO THE BUSINESS CLIMATE, UM, ECONOMIC INDUSTRY, ENVIRONMENTAL CONDITIONS OF THE INDUSTRY, UH, WE DO WANT TO SEE THAT YOU AT LEAST HAVE SOME EXPERIENCE IN THAT LINE OF WORK THAT YOU WOULD BE GOING INTO.
UM, HOW, HOW READY IS YOUR BUSINESS, UH, THE COMPETITIVE LANDSCAPE, RIGHT? YOUR COMPETITORS IN THE AREA? UM, SEASONALITY OF THE BUSINESS.
UH, IT'S JUST, UH, PRETTY MUCH, UH, JUST SAYING, WELL, I MEAN, IN TEXAS YOU PROBABLY COULD, BUT YOU DON'T WANNA OPEN AN ICE CREAM SHOP IN DECEMBER, RIGHT? UM, BUT
UM, HOW YOU'RE GONNA BE USING THE LOAN, RIGHT? UM, YOU KNOW, IF WE'RE GONNA GIVE YOU X AMOUNT OF MONEY, IF YOU QUALIFY, WHAT ARE YOU GONNA BE USING THE LOAN FOR? AND THEN THE LEGAL DOCUMENTATION FOR THE BUSINESS.
UM, IE IF YOU'RE A DBA, YOU KNOW, UM, GET THAT PAPERWORK, THE LLC PAPERWORK, UM, S CORP, THINGS OF THAT NATURE.
UM, SO CONDITIONS FOR STARTUPS, RIGHT? LIKE I WAS JUST MENTIONING, UM, THE BIGGEST THING, IF YOU ARE A STARTUP, OBVIOUSLY YOU WANNA HAVE GOOD CREDIT.
UM, BUT THAT'S NOT ALL THAT GOES INTO IT.
TYPICALLY, ALL THE FIVE CS OF CREDIT WILL ALL TIE INTO, UH, YOU GETTING APPROVED.
THE BIGGEST THING FOR STARTUPS, UH, IS SECONDARY SOURCE OF INCOME.
OKAY? SO IF YOU HAVE, UH, AN EMPLOYER, PLEASE KEEP THAT EMPLOYER UNTIL YOUR BUSINESS TAKES OFF.
WE'VE HAD CLIENTS THAT, UM, YOU KNOW, THEY'RE GETTING APPROVED, THEY'RE IN THE LOAN PROCESS, YOU KNOW WHERE EVERYTHING LOOKS GREAT, GREAT, UH, WE'RE MOVING IT FORWARD, AND ALL OF A SUDDEN WE JUST LOOK AT THE BANK STATEMENTS AGAIN AND, AND WE JUST SEE THAT THEIR INCOME JUST CEASES TO EXIST.
AND THAT'S BECAUSE THEY QUIT THEIR JOB, RIGHT? SO THEY'RE LIKE, HEY, WELL I WANT TO DEDICATE A HUNDRED PERCENT OF MY TIME TO THE BUSINESS.
WELL NOW WE CAN'T PROCESS A LOAN BECAUSE WE WERE RELYING ON THAT INCOME FOR YOU TO PAY US BACK.
AND, UM, SO, YOU KNOW, PLEASE KEEP YOUR JOB.
SO SECONDARY SOURCE OF INCOME IS A BIG, BIG THING.
IF YOU ARE A STARTUP UNTIL THAT BUSINESS TAKES OFF AND IT COULD SUPPORT YOU AND YOUR FAMILY, THEN GO AHEAD AND DO WHAT YOU NEED TO DO, UH, WITH YOUR EMPLOYER.
UH, PERSONAL INVESTMENT, LIKE WE
[00:55:01]
MENTIONED, EXPERIENCE IN THE INDUSTRY, UH, THAT PLAN OF ACTION, UH, PRETTY MUCH THE CONDITION'S.PRETTY MUCH WE JUST WANNA KNOW MORE OR LESS, UH, WHAT YOUR PLAN IS, UH, WITH THE LOAN AND, AND HOW YOUR BUSINESS IS GONNA SUCCEED.
THAT WAS SHORT AND SWEET, RIGHT?
I HOPE I WASN'T SPEAKING TOO FAST, BUT I JUST WANTED TO KIND OF THROW EVERYTHING OUT THERE AND JUST KIND OF MAKE IT A MORE, UH, UH, RELAXED STATE FOR EVERYBODY AND, UH, YOU KNOW, UH, NOT TOO ROBOTIC.
UM, IF, YOU KNOW, IF WE COULD OPEN UP THE FLOOR FOR QUESTIONS AT THE END, THAT'S ALWAYS BEST.
'CAUSE YOU THROW HURDLES AT US AND YOU THROW UP DIFFERENT CURVE BALLS AND WE CAN, YOU KNOW, GET OUR MINDS THINKING.
SO HE SAID THAT I DIDN'T, SO, UH, DURING YOUR PRESENTATION, I WAS JOTTING DOWN SOME QUICK NOTES.
ONE, I WAS REALLY INTERESTED IN COLLATERAL.
SO YOU WERE MENTIONING THE DIFFERENT THINGS ABOUT COLLATERAL AND SAY, IF I'M A BUSINESS, A STARTUP BUSINESS, AND I JUST GOT STARTED, COULD YOU TAKE, I DON'T, I DON'T HAVE A PHYSICAL PRODUCT.
WE'LL GET TO THAT IN A SECOND, BUT WOULD YOU TAKE INTELLECTUAL PROPERTIES OF MY BUSINESS AS COLLATERAL? SAY LIKE, LIKE SOFTWARES, UH, LIKE IF I HAVE A PATENT ON A MACHINE THAT I'M BUILDING, I'M, I'M INVENTING SOMETHING THAT'S BRAND NEW AND I WENT OUT AND GOT A PATENT.
COULD YOU TAKE A PATENT FOR WHAT I, WHAT I AS COLLATERAL? UNFORTUNATELY, NO.
YEAH, WE WOULD COLLATERAL WE WOULD NEED TANGIBLE ASSETS.
SO THAT'S GONNA GO RIGHT TO MY NEXT ONE.
UH, WE'LL GO TO THAT ONE LAST.
SO WHAT IF I'M AN APP DEVELOPER AND I HAVE DEVELOPED AN APP.
I HAVE THE APP IN THE GOOGLE PLAY STORE AND THE APPLE PLAY STORE, AND I HAVE A FEW DOWNLOADS OF MY APP.
IT'S A DATING APP, BUT I ONLY HOOK YOU UP WITH PEOPLE SAY 10 MILES AWAY SO THEY CAN'T COME BACK TO YOUR HOUSE LATER.
BUT I ACTUALLY HAVE SUBSCRIBER, I ACTUALLY HAVE PEOPLE DOWNLOADED MY APP.
COULD I USE THAT AS COLLATERAL? A, I HAVE A VIABLE APP.
I HAVE THE CODE WRITTEN, AND HERE IS THE ACTUAL APP ITSELF.
AND ALSO WE'VE ALSO HAD CLIENTS TELL US THAT, YOU KNOW WHAT? I HAVE $10,000 IN CASH.
UH, WE CAN'T TAKE CASH EITHER.
UM, YOU KNOW, WE, WE HAVE TO SEE THE EQUIPMENT.
UM, IF IT'S ANYTHING OVER $5,000, WE NEED SERIAL NUMBERS, UM, THINGS LIKE THAT.
UM, BUT YOU CANNOT BE LIVING ON IT.
WE COULD TAKE A HOUSE, UH, BUT IT CANNOT BE YOUR PERSONAL HOME.
YOU CANNOT BE LIVING IN THAT HOME.
SO IF YOU HAVE RENTAL PROPERTY CAN BE HOUSE.
YEAH, IT CAN BE, CANNOT BE YOUR HOMESTEAD.
UH, WE COULD DEFINITELY USE, UH, RENTAL PROPERTIES AS WELL, AS LONG AS YOU'RE NOT LIVING IN THEM.
UM, WE HAVE HAD ONE CLIENT, UM, USE HIS RENTAL PROPERTY WHERE HIS MOTHER LIVED.
BUT, UH, IF YOU'RE CURRENTLY LIVING IN THAT HOME, IN THAT HOME, WE DON'T WANNA BE IN THE BUSINESS OF TAKING, UH, YOU KNOW, OUR CLIENTS' HOME.
SO, UM, LIKE I SAID, CAN'T BE LIVING IN IT.
ALRIGHT, SO THEN MY NEXT ONE IS WORK EXPERIENCE.
YOU SAID YOU WANT TO WANT ME TO HAVE SOME SKIN IN THE GAME.
I'LL HAVE, YOU KNOW, SOME CA I'LL HAVE SOME COLLATERAL AND YOU WANT TO SEE THAT I HAVE SOME SKIN IN THE GAME.
HEY, I GOT A JOB AT PIZZA HUT.
I WORKED AT PIZZA HUT FOR FOUR, FIVE YEARS AND NOW I WANNA START MY OWN PIZZA BUSINESS BECAUSE I HAVE EXPERIENCE IN THE BUSINESS.
I, YOU KNOW, I WOULDN'T HAVE MANAGER ANYBODY, BUT I UNDERSTAND THE BUSINESS.
WOULD THAT BE RELEVANT EXPERIENCE? YES, DEFINITELY.
SO MAYBE I DO WANNA GET THAT JOB AT PIZZA HUT.
AND, UM, THIS ONE'S GONNA BE A LITTLE TOUGHER.
AND SOME PEOPLE, YOU KNOW, THEY, THIS MIGHT BE VIABLE.
THIS MIGHT BE, YOU KNOW, TANGIBLE FOR EVERYBODY.
BUT HOW DO I BUILD BUSINESS CREDIT? SHOULD I GO OUT AND GET A BUSINESS CREDIT CARD, SAY FROM HOME DEPOT OR ULINE OR SOMEBODY LIKE THAT, OR WHICH IS ANOTHER FEDEX KINKO'S AND START A CREDIT LINE THAT WAY, THAT WAY I COULD BUILD MY BUILD, I COULD BUILD BUSINESS CREDIT WITH SAY A 10 DAYS NET.
UM, AND, AND I KNOW EVERY TIME THAT I DO THIS PRESENTATION, THEY ALWAYS, THEY ASK ME FOR BUSINESS CREDIT, BUSINESS CREDIT.
I WANT TO MAKE SURE THAT HERE IN LEAD PHONE, WE DON'T DO BUSINESS CREDIT, WE ONLY DO PERSONAL CREDIT.
SO WHEN YOU APPLY WITH LEAD PHONE, IT'S GONNA SHOW UNDER YOUR PERSONAL CREDIT.
BUT LET'S GO BACK TO KEN QUESTION, BUSINESS CREDIT, OKAY, EVERYBODY ALWAYS ASK ME ABOUT BUSINESS CREDIT.
YOU CAN BUILD YOUR BUSINESS CREDIT, BUT THE FIRST STEP IS YOU NEED TO APPLY WITH YOUR PERSONAL SOCIAL SECURITY WHEN YOU GET THE, THE BUSINESS LOAN UNDER YOUR PERSONAL NAME.
AND THEN I WANT YOU THAT YOU CALL, UH, EXPERIAN AND DUMB AND BRAD THE SPRINT.
AND YOU HAVE TO MAKE SURE TO REPORT
[01:00:01]
THAT YOU ALREADY GOT THE PERSONAL, UH, THAT, THAT YOU ALREADY GOT THE BUSINESS LOAN USING YOUR SOCIAL SECURITY.AND THEY'RE GOING TO START REPORTING THAT THEY HAVE SPECIFIC FORMS THAT YOU HAVE TO FILL IT UP.
AND I WANT TO REPEAT THAT ONCE AGAIN, YOU GET THE LOAN, ONCE AGAIN, YOU SIGN THAT YOU GOT THE BUSINESS LOAN YOU NEED TO CALL EXPERIENCE AFTER 30 DAYS.
AFTER 30 DAYS WHEN YOU MAKE THE FIRST PAYMENT OR THE 45 BUSINESS DAY, YOU HAVE TO CALL EXPERIAN AND DO AND BRAD, UH, AND DOME AND BRAD THE STREET.
I THINK THAT WITH DOM, BRAD STREET, YOU NEED TO GET, YOU NEED TO APPLY WITH THEM.
AND THEN YOU'RE GONNA GET A SPECIFIC NUMBER AND THEN THEY'RE GONNA ASK YOU, YOU HAVE TO FILL IT OUT, THIS TYPE OF FORM.
SO WE'RE GONNA START MAKE SURE TO BUILD, TO BUILD YOUR BUSINESS CREDIT.
ALRIGHT, SO AFTER 30 DAYS, WE MAKING, I CALLED DUN AND BRADSTREET AND I TELL DUN AND BRADSTREET, HEY, I HAVE A BUSINESS, I WANT BUSINESS CREDIT.
AND THEY WILL START THE PROCESS OF ME EARNING BUSINESS CREDIT BY, OKAY, I GOT THAT, I GOT THAT ONE.
SO WHAT I'LL DO IS, RIGHT NOW I WILL GO AHEAD AND LIGHT UP ALL THE MICS.
EVERYBODY'S MIC IS NOW LIVE, BUT IF YOU START MAKING TOO MUCH NOISE, I'M GONNA MUTE IT.
UM, SO EVERYBODY'S MIC IS LIVE.
IF YOU WANNA RAISE YOUR HAND, YOU CAN RAISE YOUR HAND AND I'LL TRY MY BEST TO CALL YOUR NAME.
BUT IF SOMEBODY HAS ONE REALLY QUICK, WHAT, MAN, WE GOT ONE FAST.
HOW CAN I HELP YOU? JESSICA, GO AHEAD AND ANSWER YOUR QUESTION.
SO I RECENTLY SAW A VIDEO OF SOMEBODY WHO IS, UM, A LENDER.
IT WORKS FOR A COMPANY THAT GIVES OUT LOANS.
AND THEY SAID WHAT THEY'RE RUNNING INTO NOW AS IT'S BECOMING A LOT MORE POPULAR IS THINGS LIKE KLARNA AND AFTERPAY AND WHERE YOU CAN TAKE OUT THOSE SMALL LOANS TO KIND OF PAY THINGS OFF.
I'M NOT SURE IF EITHER OF YOU'RE FAMILIAR WITH THOSE, THAT THEY'RE RUNNING INTO A LOT OF ISSUES AS PEOPLE TRY TO TAKE OUT LOANS OR GET THINGS LIKE THAT BECAUSE THE TERMS OF THOSE CAN BE REALLY MESSY.
ARE YOU FAMILIAR WITH THAT? DO YOU HAVE ANY TIPS? 'CAUSE I KNOW THAT'S A REALLY COMMON THING THAT PEOPLE ARE USING NOWADAYS THAT MIGHT BE AFFECTING THEM MORE THAN THEY REALIZE.
I, WELL, I'M NOT, I'M NOT FAMILIAR WITH THAT, BUT I WANT TO, I WANT TO MAKE SURE THAT EVERYBODY UNDERSTAND THAT BEFORE, BEFORE YOU APPLY, YOU HAD TO UNDERSTAND YOU HAD TO DO LIKE A, A DUE DILIGENCE.
MAKE SURE WHO IS THIS COMPANY, WHAT IS THE INTEREST RATE? BECAUSE THERE'S A LOT OF PEOPLE OUTSIDE AND, AND LENDERS, RIGHT? THAT THEY SAY, I CAN GIVE YOU THE MONEY THE NEXT DAY, OR I CAN HELP YOU, YOU WHATEVER YOU WANT.
I CAN GIVE YOU THE, THE FUNDING, THE SAME BUSINESS DAY.
SO REMEMBER OUR PROCESS TIME, SOMETIMES IT'S BETWEEN FOUR TO 12 WEEKS.
AND THESE PEOPLE, IF THEY GIVE YOU THE MONEY AND ONE DAY OR TWO DAYS, MAKE SURE THE INTEREST RATE MORE LIKELY IS GONNA BE 20% OR 25% ALEJANDRO.
SO, UM, MOST OF MY SUCCESS STORIES, UH, COME FROM, YOU KNOW, CLIENTS THAT ARE CALLING ME, YOU KNOW, UM, DESPERATELY TRYING TO GET OUTTA THAT LOAN, UH, THAT THEY'RE CURRENTLY IN.
UH, 'CAUSE WE HAVE SEEN THAT SOME, UH, SOME PREDATORY LENDERS WILL TAKE ROUGHLY THE BIGGEST ONE I'VE SEEN WAS LIKE ROUGHLY $300 A DAY, UH, FROM THEIR BUSINESS ACCOUNT.
YOU KNOW, JUST EVERY DAY THEY WERE TAKING THE $300 OUT AND THEY SAID LIKE, HEY, DID THIS, THIS COMPANY'S EATING ME ALIVE, YOU KNOW, AND I NEED TO REFINANCE MY LOAN.
UH, CAN YOU GUYS PAY IT OFF? NOW WHEN IT COMES TO THAT, UH, WE DO HAVE TO SEE THAT, UH, THAT THAT LOAN WAS NOT A PERSONAL ONE.
IT HAS TO BE STRICTLY A BUSINESS LOAN.
AND, UH, MOST OF MY SUCCESS STORIES DO COME FROM, YOU KNOW, GETTING THOSE, UH, THOSE SMALL BUSINESS OWNERS WHO, UM, YOU KNOW, ARE JUST TRYING TO, TRYING TO SUPPORT THEIR FAMILY.
UM, GET OUT OF THOSE, OUT OF THOSE LOANS THAT, UM, THAT ARE SO OF HIGH INTEREST OR, UM, UH, JUST, UH, YOU KNOW, JUST TAKING EVERYTHING THAT YOU'VE PAID THAT DAY.
UM, HERE AT LIFTFUND, UH, WE DO, UH, ONE, UH, ONCE A MONTH.
UH, THERE IS NO PREPAYMENT PENALTY AND OUR RATES ARE PRETTY COMPETITIVE.
UM, BUT YES, UH, LIKE FRANCISCO SAID, UH, DO PLEASE DO YOUR HOMEWORK ON ON WHO YOU'RE, UM, YOU KNOW, SEEKING OUT LENDING FROM.
'CAUSE THERE ARE SOME OUT THERE THAT, THAT, THAT ARE VERY PREDATORY.
YOU MI SAID SOMETHING AND IT'S SORT A QUESTION, BUT I WANTED TO WRITE SOME NOTES REALLY QUICK SO, UH, IT'LL COME BACK TO ME IN JUST A SECOND.
WE'LL GO AHEAD AND HIT MS. NAKIA SIMS, MS. NAKIA, GO AHEAD AND MUTE YOURSELF AND ASK, UNMUTE YOURSELF AND ASK YOU A QUESTION.
YEAH, SORRY, I'M MULTITASKING.
I, I'M THE ONE THAT ASK ABOUT THE FEASIBILITY STUDY AND PART OF THAT IS TO HELP, LIKE PEOPLE GOING INTO BUSINESS, MAYBE WHEN IT'S JUST KIND OF IN THE INCEPTION PERIOD OF KIND OF COMPARING THE MARKET.
I'VE REACHED OUT TO THE SBA AND A FEW OTHER RESOURCES, UH, WHEREIN YOU DON'T HAVE TO PAY SOMEONE TO DO THE FEASIBILITY STUDY, BUT LOOKING AT LIKE, THE MARKET AND JUST WHERE IT'S GOING TO BE,
[01:05:01]
YOU KNOW, FINANCIALLY ADVANTAGEOUS TO ACTUALLY IN YOUR MARKET TO MOVE FORWARD BEFORE YOU PUT THE SKIN IN THE GAME OR POSSIBLY GET, YOU KNOW, PUT UP COLLATERAL AND, YOU KNOW, LOSE ITEMS BECAUSE IT'S, YOU KNOW, IT'S JUST NOT THE RIGHT TIME OR THE RIGHT BUSINESS IDEA.SO THAT WAS THE QUESTION EARLIER ABOUT YOU ALL SPECIFICALLY I AM COGNIZANT OF, UH, ONE ORGANIZATION WHERE YOU CAN KIND OF GET HELP WITHOUT PAYING FOR A FACILITY STUDY.
UM, MY OTHER QUESTION, UM, WAS RELATED TO, DO YOU ALL WITH A LIT FUND? I'M REALLY BIG ABOUT NOT REINVENTING THE WHEEL.
SO AS FAR AS, DO YOU ALL POST, YOU MENTIONED ALEJANDRA, YOU REFERENCED SOME OF YOUR SUCCESS STORIES MM-HMM
SO DO YOU ALL, UH, LIFT, YOU KNOW, I TRY TO LEARN AND I KNOW LIFT OFF HOUSTON IS REALLY GOOD ABOUT MENTORSHIP AND GIVING ACCESS TO PAST WINNERS.
DO YOU ALL LIST, LIKE THROUGH YOUR LIKE DATA AND ANALYTICS, UH, BUSINESSES THAT ARE KIND OF SUCCESS STORIES OR PEOPLE THAT ARE, ARE OPEN TO KIND OF, YOU KNOW, SHARING THEIR STORY WITH THEIR, UM, EXPERIENCES WITH LIFTOFF FUND FUND.
IS THERE ANYTHING LIKE THAT AVAILABLE ON YOUR WEBSITE OR AS A RESOURCE? YEAH, I BELIEVE THERE IS.
AND, UH, UH, IN TERMS OF, UH, YOU KNOW, HELPING OUT, UH, IN TERMS OF FE FEASIBILITY STUDIES, UH, WE DO HAVE, UH, THE WOMEN'S BUSINESS CENTER, I DUNNO IF YOU'VE HEARD OF THAT.
UM, AT LIFTFUND THEY OFFER ONLINE WORKSHOPS, TRAININGS, AND ONE-ON-ONE CONSULTATIONS WITH BUSINESS ADVISORS.
AND THEN THERE'S ANOTHER ORGANIZATION THAT WAS OUT OF DALLAS THROUGH I THINK TEXAS CHRISTIAN, THEY'RE COMING TO HOUSTON, BUT THEIRS IS LESS LIKE KIND OF WHAT YOU MENTIONED ONE-ON-ONE AND FEASIBILITY STUDIES.
WHAT I FOUND IS A LOT OF ORGANIZATIONS ARE KIND OF OFFERING THE SAME THING.
SO WHEN YOU'RE LOOKING FOR SOMETHING A LITTLE MORE IN DEPTH, THAT'S WHERE THAT GAP IN KIND OF NEED AND SERVICES EXISTS.
UM, MY OTHER QUESTION, 'CAUSE I'VE KIND OF BEEN AWARE OF CREDIT, I'VE HEARD, AND I DON'T KNOW HOW TRUE THIS IS, SOMEONE MENTIONED, UM, ABOUT GETTING AN LLC WHERE IT'S YOUR OWN NAME, YOU TRADEMARK YOUR OWN NAME.
AND THEN WHEN YOU GET YOUR EIN, BECAUSE THE EIN IS THE SAME NUMBER OF A SOCIAL A SSN NUMBER THAT THAT COULD SOMEHOW BE USED ADVANTAGEOUSLY, YOU KNOW, WITH RESPECT TO A BUSINESS CREDIT.
I'M NOT SURE YOU KNOW, HOW ACCURATE, THAT'S WHAT MY QUESTION IS AS FAR AS WOULD THERE BE SOME MERIT OR MIGHT THAT BE AN ADVANTAGEOUS THING TO DO? THAT ONE YOU HAVE TO SPEAK WITH ACCOUNTANT BECAUSE, UH, A ANY, ANY, ANY BUSINESS, ANY D-B-A-L-L-C CORPORATION, UH, IRS REQUIRE THE EIA NUMBER, EMPLOYEE EMPLOYEE NOTIFICATION NUMBER.
SO I DON'T KNOW WHO WHO TELL YOU THAT INFORMATION, BUT YOU HAVE TO MAKE SURE TO VERIFY WITH I HAVE THREE, YEAH, I HAVE THREE EINS AND I'VE LOOKED AT TRADEMARKS FOR OTHER THINGS AND KIND OF FAMILIAR ABOUT THE LLC, LIKE THE PURPOSE OF LIKE THE PROTECTION MM-HMM
BUT YEAH, I COULD PULL THE PERSON AS A SOURCE.
BUT YEAH, THE PROCESS OF GETTING THE EIN IS VERY SIMPLE.
UM, AND THERE WAS ONE MORE QUESTION, BUT I THINK I'M GONNA GIVE THE FLOOR TO THE OTHER PARTICIPANTS AND THEN MAYBE CIRCLE BACK AROUND AS I THINK, I THINK THERE WAS A QUESTION I HAD BASED ON SOME OF THOSE GREAT QUESTIONS THAT KIM WAS POSING EARLIER MM-HMM
AND, AND, UH, MAKE SURE TO CALL S SCORE SCO HOUSTON, S-C-O-R-E, SCO HOUSTON, OR SBDC HERE IN HOUSTON.
YOU CAN GO TO THEIR OFFICES AND YOU CAN SIT DOWN WITH THE BUSINESS MANAGER I HAVE AND YEAH.
I'VE BEEN KIND OF DOING LIFTOFF IN SOME OF THE OTHER PROGRAMS. I'VE ACTUALLY DONE PITCH COMPETITIONS AND WON A FEW, SO I'M FAMILIAR WITH THEM, BUT THEY DON'T TEND TO, UNLESS YOU'RE JUST FORTUNATE TO GET SOME, A MENTOR, UM, THAT HAS MORE CAPACITY.
LIKE THE QUESTIONS I'VE POSED, THEY DON'T GET THAT DETAILED INTO LIKE, THE FEASIBILITY.
THAT'S WHY I THINK I MENTIONED THE SBA AND A FEW OTHER PLACES WHERE THEY, YOU KNOW, THEY GIVE YOU A SCOPE OF WORK WHERE THEY'RE SUPPOSED TO HELP YOU, BUT IF YOU HAVE A INDUSTRY THAT'S A VERY NICHE, WHERE THERE'S A HIGH AREA WHERE THEY KIND OF HAVE TO LEARN YOUR INDUSTRY.
BUT YEAH, I'M, I'M FAMILIAR WITH SCORE AND YOU KNOW, THEY DO THE WORKSHEET BEFORE AND I'VE HAD A FEW SCORE MENTORS, BUT KIND OF THE QUESTIONS I'VE POSED, I'VE YET TO MEET A SCORE, UH, MENTOR THAT KIND OF HAS STEERED ME IN THE DIRECTION OF SOME OF THE QUESTIONS I'VE POSED TODAY.
MS. SIMS. YOU ASKED A LOT OF GREAT QUESTIONS AND THAT KIND OF SPURRED UP.
SO I HEARD YOU MENTION AT THE, YOU HEARD YOU MENTION THAT YOU HAVE A PROGRAM SPECIFICALLY FOR WOMEN.
COULD YOU TELL US A LITTLE BIT ABOUT THAT ONE? ALEJANDRO? I SO SORRY, GO AHEAD.
[01:10:01]
THAT TOWARDS THE LIFT FUND OR THE ONE THAT I WAS, BECAUSE THERE ARE TWO THAT, OH, THAT WAS FOR LIFT FUND.YEAH, SO WE DON'T, WE, WE DON'T HAVE A PROGRAM SPECIFICALLY FOR WOMEN.
UH, BUT I MEAN, WE, UM, WE CATER TO, UH, YOU KNOW, TO, UH, STARTUPS, UH, MINORITIES, VETERAN WOMEN OWNED BUSINESSES, UM, YOU KNOW, PRETTY MUCH, UH, YOU KNOW, THE, THE, THE MINORITIES OF OUR COMMUNITIES.
UH, BUT SPECIFICALLY FOR, FOR WOMEN, NO.
I MEAN, IT JUST KIND OF JUST GOES ACROSS THE BOARD.
BUT WE ARE, WE, WE ARE, UH, WE DO CATER UP TO WOMEN OWNED BUSINESSES, IF THAT'S A GOOD ANSWER FOR YOU.
THAT'S WHAT I WAS LOOKING FOR.
THANK YOU, MS. JESSICA IS ANOTHER QUESTION.
SO I WANTED TO POSE AN EXAMPLE.
UM, SO SAY I, I WIN LIFTOFF HOUSTON, UM, AND I WIN THE $10,000 FROM THE PITCH COMPETITION.
MY ANNUAL INCOME IS AROUND $60,000.
I HAVE ALL MY DEBTS PAID OFF NOW, BUT IN THE LAST FIVE YEARS, I GOT REALLY DEEP INTO CREDIT CARD DEBT, STUDENT DEBT.
UM, BUT IN THE PAST FEW YEARS, I GOT THAT, THAT PAID DOWN QUITE A BIT, BUT MY CREDIT STILL HAS NOT FULLY RECOVERED.
I WON $10,000 IN THE PITCH COMPETITION, BUT I NEED ABOUT A HUNDRED THOUSAND TO START MY BUSINESS.
AND I WANTED TO COME TO LIFT FUND TO TALK ABOUT MY LOAN OPTIONS.
WHAT SHOULD I BRING TO THE MEETING AND WHAT SHOULD I HAVE PREPARED FOR A, I LOVE YOUR QUESTION, JESSICA, LOVE.
LET ME, LET ME SAY THE FIRST REQUIREMENTS AND, AND, AND THEN I WILL LET ALEJANDRO TO, TO TELL YOU THE OTHER REQUIREMENTS.
OKAY? SO JESSICA, THE FIRST REQUIREMENT, BUSINESS PLAN, BUSINESS PLAN.
IF YOU ASK ME FOR A HUNDRED THOUSAND DOLLARS, I WANT TO MAKE SURE YOU'RE COMING TO MY OFFICE AND YOU BRING YOUR BUSINESS PLAN, OKAY? SECOND REQUIREMENT, I WANT TO MAKE SURE THAT YOU TELL ME EXACTLY WHAT YOU'RE LOOKING FOR, BECAUSE A LOT OF PEOPLE COME INTO MY OFFICE, AND WHEN I ASK, HOW MUCH ARE YOU LOOKING FOR? WHATEVER YOU WANT TO GIMME, I SAY, OKAY, YOU'RE NOT READY YET.
SO, BUSINESS PLAN, WITH TWO YEARS OF FINANCIAL PROJECTIONS, UH, I WANT TO MAKE SURE THAT YOU TELL ME EXACTLY HOW MUCH ARE YOU LOOKING FOR.
AND ANY LENDER IS GONNA ASK YOU, YOU HAVE TO BRING SOMETHING TO THE TABLE IS SCHEME IN THE GAME.
SO WE ARE GONNA ASKING YOU, BECAUSE THIS IS A NEW BUSINESS, THE 10% CAPITAL INJECTION.
SO IF YOU ASK ME FOR A HUNDRED THOUSAND, YOU WANT TO MAKE SURE THAT YOU HAVE 10,000 SITTING IN YOUR BANK ACCOUNT, AND WE'RE GONNA HELP YOU WITH 90,000.
OKAY? SO I TALK ABOUT THE BUSINESS PLAN WITH TWO YEARS OF FINANCIAL PROJECTIONS.
I WANT YOU TO MAKE SURE YOU TELL ME I NEED A HUNDRED, I NEED WHATEVER THE AMOUNT THAT I'M LOOKING FOR, FOR THIS, FOR THIS, FOR THIS.
AND YOU NEED TO BRING THE 10% CAPITAL INJECTION, OKAY? IF YOU DON'T HAVE IN YOUR BANK ACCOUNT, FRANCISCO, I ALREADY INVESTED 10,000 INTO MY BUSINESS, I NEED $90,000 TO COMPLETE MY PROJECT, AND I GONNA LET ALEJANDRO TO TELL YOU THE OTHER REQUIREMENTS.
OKAY? SO I'M SEEING SOME THINGS HERE ON THE, UH, ON THE CHAT AS WELL.
SORRY, I WAS READING OVER HERE.
WHERE DID YOU OFFER THIS CALL? SO, AS A BUSINESS PLAN WITH TWO YEARS OF FINANCIAL IONS AND 10% CAPITAL INJECTION.
OKAY? SO FOR A HUNDRED THOUSAND DOLLARS LOAN, WE'RE ALSO GONNA BE LOOKING AT YOUR, AT YOUR FINANCIALS, RIGHT? SO, UM, THREE MONTHS OF PERSONAL, UH, BANK STATEMENTS TO MAKE SURE THAT YOU CAN REPAY THAT LOAN.
PRETTY MUCH IT'S AGAIN, THE FIVE C OF CREDIT ARE GONNA, UH, FALL INTO PLACE, UM, FROM OF, OF WHAT WE WANT TO SEE PRIOR TO YOU APPLYING, UM, FOR A LOAN OF, OF $50,000 OR MORE, WE DO REQUIRE TAX RETURNS AS WELL.
SO IF YOU WANNA BRING THOSE OVER, UM, DEFINITELY LOOK AT THOSE AS AS WELL.
UM, NOT GONNA LIE TO YOU, WE WILL NOT KNOW, UH, IF YOU ARE GONNA GET PRE-APPROVED FOR THE LOAN UNTIL YOU ACTUALLY APPLY, BECAUSE THAT IS EXACTLY HOW WE'RE GONNA SEE EVERYTHING THAT IS, UM, YOU KNOW, ON YOUR CREDIT, UH, YOUR, YOUR FINANCIALS, UM, UH, THINGS OF THAT NATURE.
SO UP UNTIL YOU APPLY, UH, THIS ONE, WE WILL, WE'LL BE ABLE TO KNOW HOW MUCH YOU WOULD QUALIFY FOR, BUT YOU DO WANT TO BE PREPARED.
SO PRETTY MUCH ALL THOSE THINGS THAT WE JUST MENTIONED, UM, IS WHAT YOU WANNA BRING TO US.
UH, SO WE COULD TAKE A LOOK AT IT AND, AND WE COULD TELL YOU, HEY, YOU KNOW WHAT? YOU'RE READY TO APPLY, OR HEY, YOU KNOW, YOU NEED TO FIX THIS, THIS, AND THIS, UH, BEFORE YOU APPLY AND COME BACK IN SIX MONTHS OR X AMOUNT OF TIME.
AND, AND YOU HAD TO MAKE SURE TO, I MEAN, TO MAKE SURE WHAT IS YOUR CREDIT? BECAUSE JESSICA, YES, JESSICA MENTIONED, HEY, FRANCISCO, HAVE A HIGH DEBT IN CREDIT CARDS, BUT IN THE LAST FEW YEARS I'VE BEEN PAYING DOWN MY DEBT.
YOU, AND THIS IS HOW ANY LENDER IS GONNA SEE YOU NEED TO HAVE ROOM FOR ANOTHER, UH, ROOM FOR ANOTHER OBLIGATION.
OKAY? SO WHAT ARE WE LOOKING FOR FOR A HUNDRED
[01:15:01]
THOUSAND DOLLARS AFTER WE, WHEN WE PULL YOUR CREDIT, WE WANT TO MAKE SURE THAT BASED ON YOUR, BASED ON YOUR INCOME AND YOUR ADDITIONAL INCOME, WE WANT TO MAKE SURE THAT, UH, YOU CAN SUPPORT ANOTHER OBLIGATION.BECAUSE FOR NEW BUSINESSES, FOR NEW BUSINESSES, JESSICA, WHEN PEOPLE SAY, I'M GONNA QUIT MY JOB AND I'M GONNA DEDICATE A HUNDRED PERCENT TO, TO MY BUSINESS, WE LOVE TO HEAR THAT.
BUT YOU NEED, YOU NEED TO SUPPORT YOUR FAMILY.
YOU NEED TO SUPPORT YOUR CURRENT OBLIGATIONS.
SO WHO'S GONNA PAY THOSE EXPENSES WHILE YOU'RE IN YOUR BUSINESS? BECAUSE WE DON'T KNOW HOW THE BUSINESS IS GONNA BE.
PROJECTIONS ARE GOOD FOR CUSTOMERS.
PROJECTIONS, PROJECTIONS, FINANCIAL PROJECTIONS ARE GOOD FOR BUSINESS OWNERS BECAUSE WE WANT TO MAKE SURE THAT YOU UNDERSTAND HOW MUCH YOU NEED TO MAKE PER DAY, PER WEEK, PER MONTH, PER YEAR.
UM, BUT THAT ONE WAS A GOOD QUESTION.
YOU HAD TO MAKE SURE IF YOU CAN SUPPORT ANOTHER, THAT'S WHAT I ALWAYS ASK.
CAN YOU SUPPORT ANOTHER OBLIGATION TODAY? CAN YOU SUPPORT AN, UH, A NEW PAYMENT OF 200, 300, 500 1000 TODAY? DEPENDS THE AMOUNT THAT YOU'RE LOOKING FOR.
BUT THAT ONE WAS A GOOD QUESTION.
DO YOU WANT TO ADD SOMETHING ELSE, ALEJANDRO? YEAH.
ALSO, I MEAN, EVEN IF YOU MAKE, MAKE, MADE ALL YOUR PAYMENTS ON TIME, RIGHT? UH, WE SEE GOOD CREDIT SCORES ALL THE TIME, YOU KNOW, GOOD CAPACITY.
BUT IF YOU ARE A LITTLE OVEREXTENDED, MEANING, YOU KNOW, EVERYTHING THAT YOU'RE MAKING IS GOING OUT, UH, BY, ON YOUR MORTGAGE, YOUR VEHICLES, IF, IF YOU ARE TOO OVEREXTENDED ON, ON, ON THINGS SUCH AS THOSE TO INCLUDE, UH, CREDIT CARD DEBT, UM, PROBABLY WON'T GET APPROVED.
UH, BECAUSE WE DO WANT TO GIVE YOU THIS LOAN TO HELP YOU AND NOT TO PUT YOU IN ANOTHER FINANCIAL HARDSHIP, RIGHT? LIKE, WE DON'T WANNA GIVE YOU MORE MONEY THAT YOU'RE ALSO GONNA BE, UM, NOT BEING ABLE TO PAY BACK.
SO BEING OVER EXTENDED IS ALSO SOMETHING THAT YOU DON'T WANT TO BE IN.
UH, TYPICALLY 30%, JUST LIKE ANY CREDIT CARD SUB, YOU WANT TO KEEP THAT, UM, UM, THAT CREDIT LIMIT AROUND 30%.
SO, GENTLEMEN, I WANTED TO GO BACK TO THE COLLATERAL QUESTION ONE MORE TIME BECAUSE YOU MENTIONED THAT IN, UM, IN THE COLLATERAL, BECAUSE I'M A NEW BUSINESS, I'M JUST STARTING, AND YOU, I THINK, UH, MR. ALEJANDRO, YOU SAID THAT IF I GOT A PURCHASE ORDER FOR THE EQUIPMENT, THEY WOULD JUST SEND IT OVER TO YOU GUYS AND THEN YOU WOULD, I WOULD JUST PAY YOU BACK FOR THAT PURCHASE ORDER.
SO IN ESSENCE, YOU WOULD OWN THE EQUIPMENT, I WOULD BUY THE EQUIPMENT FROM YOU, BUT I'M STARTING A LAWN CARE SERVICE.
AND IN THIS LAWN CARE SERVICE, YOU KNOW, I HAD TO BUY A COUPLE MOWERS, UH, SOME EDGERS AND JUST A TRAILER TO TOW MY THINGS AROUND.
COULD I HAVE MULTIPLE THINGS SENT TO YOU, MULTIPLE POS, OR YOU JUST WANT ME TO GO TO ONE COMPANY AND GET A PO? NO, IT DOESN'T.
UH, WE WOULD, WE WOULD JUST NEED A PURCHASE ORDER OF ALL THE THINGS YOU WOULD LIKE TO PURCHASE TO GET YOUR, GET YOUR COMPANY UP AND RUNNING, AND WE WOULD ESSENTIALLY BUY YOU THAT EQUIPMENT, RIGHT? UH, WE WOULD OWN THE EQUIPMENT UP UNTIL YOU PAY OFF THE LOAN, AND THEN THE EQUIPMENT WOULD BE YOURS.
SO, MR. FRANCISCO, I STILL NEED TO COME IN WITH A SOLID BUSINESS PLAN AND SHOW YOU THIS ABSOLUTELY.
JUST CAN AND SAY, HEY, MY BUSINESS PLAN IS THIS, THIS IS HOW MANY, YOU KNOW, I'M REALISTIC.
I'M NOT GONNA GO OUT AND DO 50 YARDS IN ONE DAY.
I'M GONNA DO 10 STARTING OFF, AND I'M GONNA SPEND MONEY ON, I'M GONNA SPEND SOME OF THE MONEY ON MARKETING, PASSING OUT FLYERS, YOU KNOW, WRAPPING MY TRUCK.
AND THAT WOULD, THAT WOULD BE OKAY IN MY BUSINESS PLAN TO SEE, YES, SIR.
YOU HAVE TO MAKE SURE HOW YOU, HOW YOU GONNA MARKET YOUR BUSINESS.
LIKE TODAY'S, THE MARKETING THAT WE USE IN, IN, IN, IN, IN THIS, IN THIS ERA IS DIFFERENT THAN MARKETING BACK IN THE NINETIES, BECAUSE NOW EVERYTHING IS INVOLVED IN SOCIAL MEDIA, FACEBOOK, INSTAGRAM, TIKTOK, UH, YOUTUBE, TWITTER, MOST OF THE BUSINESS, MOST ALL I CAN SAY, MAYBE THE 60% OF THE BUSINESSES, THEY HAVE A PERSON WHO HAS MANAGED ALL THE SOCIAL MEDIA.
AND YOU HAVE TO PUT THAT ONE IN YOUR MARKETING PLAN.
IT'S OKAY, I WANT TO MAKE SURE I GONNA HIRE ALEJANDRO, HE IS GOOD, AND, AND SOCIAL MEDIA, HE'S GONNA CHARGE ME $3,000 A MONTH.
HOW MUCH ARE YOU LOOKING? I MEAN, HOW MUCH DO, HOW MUCH IS GONNA BE YOUR MARKETING? BECAUSE, UH, PAPER, LIKE FLYERS, ALL THAT BUSINESS CARDS IS NOT ANYMORE AN EFFECTIVE MARKETING, UH, STRATEGY.
THE, THE, THE EFFECTIVE, UH, UH, THERE'S A LOT OF, UM, UM, SCENARIOS THAT NOW MOST OF THE BUSINESS, THEY'RE SUCCESS BECAUSE THE SOCIAL MEDIA A GOOD, IF THEY HAVE A REALLY GOOD, UH, YOUTUBE CHANNEL, UH, MARKETING, UH, FACEBOOK, WHATEVER, I MEAN, THEY'RE SUCCESSFUL BECAUSE, BECAUSE OF THAT, AND YOU HAVE TO MAKE SURE WHO'S GONNA BE YOUR AUDIENCE,
[01:20:01]
WHO'S GONNA BE YOUR TARGET.I, I GUESS I WOULD BE AFRAID BECAUSE I DON'T WANNA OVERLOAD MY BUSINESS PLAN, AND YOU SEE MY BUSINESS PLAN WITH ALL OF THIS STUFF IN IT, AND YOU'LL BE LIKE, NO, HE'S OVEREXTENDING HIMSELF.
SO I SHOULDN'T SHY AWAY FROM PUTTING IN MY MARKETING PLAN, MY BUSINESS PLAN THAT I'M GONNA SPEND X AMOUNT OF DOLLARS IN MARKETING, OR I'M GOING TO GO AHEAD AND, AND KEN, THAT IS GOOD.
THAT IS, I MEAN, THAT IS GOOD EXPLANATION, BUT THIS IS MY, THAT, THIS IS MY ANSWER.
IT IS THE BIBLE IS YOUR, IS YOUR, BASICALLY BASED ON YOUR BUSINESS PLAN, YOU KNOW HOW YOU'RE GONNA RUN THE BUSINESS.
IT'S SOMETHING NEEDS IS NOT DOING GOOD.
YOU HAVE TO GO BACK TO THE BUSINESS PLAN, OKAY? AND YOU HAD TO READ IT.
OKAY? SO, UM, WHEN PEOPLE BRING ME A BUSINESS PLAN FOR 60 PAGES, I'M LIKE, YOU DON'T KNOW THE BUSINESS PLAN.
I WANT A VERY SIMPLE BUSINESS PLAN THAT THE BUSINESS OWNER CAN UNDERSTAND AND YOU CAN MANAGE, AND YOU ARE ALLOWED TO CHANGE THE BUSINESS PLAN, LIKE EVERY SIX MONTHS.
GO BACK TO THE BUSINESS PLAN, CHANGE IT BECAUSE, UH, SOMETIMES BUSINESS OWNERS SAY, THIS IS MY BUSINESS PLAN AND I'M GONNA STICK WITH AND NOT GONNA CHANGE ANYTHING.
NO, BECAUSE THE MARKET OUTSIDE, THEY, THEY, THEY, UH, THE MARKET, THEY REACT DIFFERENT.
OR WHAT WE THINK SOMETIMES PEOPLE OPEN A RESTAURANT IS, AND THEY SAY, I GONNA, UH, THE QUESADILLAS IS GONNA BE THE, THE BEST PLATE, THE BEST DISH, BUT HAPPENED THAT SOMETHING ELSE IS THE IS, IS IS WHAT THE MARKET IS LOOKING FOR.
SO YOU'RE ALLOWED TO COME AND CHANGE YOUR BUSINESS PLAN ANYTIME.
SO, UH, MR. A, UH, MR. ALEJANDRO, I SEE YOU READING A QUESTION.
YOU'RE LOOKING AT IT REALLY, REALLY HARD.
I WANNA ANSWER SOME OF THE ONES IN THE CHAT HERE.
SO, UH, WERE YOU AT THE CITY FAIR HOUSING GRANT WORKSHOPS? FRANCISCO? DID WE ATTEND THAT? I DON'T THINK WE DID THE, WHICH ONE? THE CITY FAIR HOUSING GRANT WORKSHOPS.
WHEN WAS IT? I'M NOT SURE, BUT THEY'RE ASKING, YOU KNOW, IF I WAS THERE, MR. I DO NOT BELIEVE I WAS THERE.
UM, UM, OKAY, HERE'S A GOOD, HOW IS, HOW IS, HOW, HOW IS, UH, HOW HAS INFLATION AFFECTED THE INTEREST RATE OF BUSINESSES TODAY AND WHAT ADVANTAGE TO OCCURRING DEBT TO PRE CAPITAL STAGE VERSUS YEAH, GOOD LUCK WITH THAT.
SO, UM, UNFORTUNATELY INFLATION IS VERY REAL.
UM, YOU KNOW, UH, WE HAD OUR, OUR RATES WHEN I CAME INTO LIFT FUND, IT WAS AT 9% AND, UH, 2022 WENT UP TO 9.9, OKAY? MM-HMM
UH, BUT UNFORTUNATELY WE DO HAVE TO LET YOU GUYS KNOW, UM, OUR INTEREST RATES WILL BE GOING UP, UH, OCTOBER 1ST.
UM, IT'LL BE GOING UP TO 12.5, AND THAT IS, UM, THAT IS OUR, UM, PRETTY MUCH OUR INTEREST RATE CEILING, YOU KNOW, WON'T GET HIGHER THAN THAT FOR THE TIME BEING.
UM, YOU KNOW, WE HAVE TO KEEP UP WITH THE TIMES, AND THAT'S LITERALLY WHAT LIFTFUND HAD TO DO TO KEEP THE LIGHTS ON, RIGHT? TO STAY IN BUSINESS.
UM, UH, WE DO HAVE OTHER PROGRAMS, UH, THAT COULD POTENTIALLY DROP DOWN THAT INTEREST RATE, BUT AS FAR AS WE KNOW, WE'RE AT THE CURRENT MOMENT, THAT IS THE HIGHEST YOU WOULD PAY.
UM, IF WE HAVE ANY VETERANS IN THE CHAT, UH, ARE SPOUSES OF VETERANS, UH, WE DO OFFER A 5%, UM, INTEREST RATE FOR VETERANS.
SO YOU TAKE ADVANTAGE OF THAT IF YOU ARE IN THAT REALM.
UH, LET'S SEE, AND THEN THOSE, A TWO PART QUESTION HERE.
WHAT ARE THE ADVANTAGES TO ACCRUING DEBT AT A PRE CAPITA STAGE VERSUS EQUITY OR FINANCIAL GIFTS? FRANCISCO, I TAKE THAT WERE, I APOLOGIZE.
SO WHAT ARE ADVANTAGE TO ACCRUING DEBT AT PRECAP STAGE? DOES THAT, ARE, ARE YOU ASKING, UH, PRETTY MUCH LIKE, YOU KNOW, HAVING DEBT PRIOR TO SEEKING A LOAN? THEY ARE NOT ADVANTAGE IF THEY CAN ELABORATE MORE ABOUT WHAT ARE THEY ASKING? YEAH.
UM, MR. HORACE, GO AHEAD AND UNMUTE YOUR MIC.
YOU GO AHEAD AND ANSWER YOUR QUESTION ALOUD.
WE CAN GET A BETTER UNDERSTANDING OF WHAT YOU'RE LOOKING FOR.
SO THAT SECOND PART OF THE QUESTION WHERE I SAID, WHAT IS THE ADVANTAGE OF ACCRUING DEBT AT A PRE CAPITA STATE? WHEN I SAY PRE CAPITA STAGE, I MEAN BEFORE YOU HAVE ACTUALLY STARTED RAISING MONEY, IS THERE AN ADVANTAGE TO TAKING OUT A LOAN VERSUS SHARING EQUITY WITH PARTIES THAT MIGHT BE INTERESTED IN GOING THAT ROUTE? IS THERE AN ADVANTAGE TO TAKING OUT A LOAN? THAT ONE IS
[01:25:01]
YOUR DECISION, MR. HOREZ, BECAUSE, UH, BECAUSE PRIVATE INVESTORS, UH, THEY'RE GOING TO, THEY CAN GIVE YOU THE MONEY, BUT THEY'RE GONNA GET SOMETHING FROM YOUR BUSINESS.OKAY? THEY'RE GONNA GET SOME, SOME SHARES FROM THE BUSINESS, OR THEY MAY ACTUALLY ASKING YOU FOR OWNERSHIP OF YOUR BUSINESS.
IN CONTRAST OF THAT, IF YOU GOT A LOAN, FOR EXAMPLE, LEAD FUND, PEOPLE PHONE THROUGH PHONE, YOU KNOW, THAT YOU HAD TO PAY BACK THE LOAN AND YOU'RE THE ONLY OWNER OF YOUR BUSINESS, YEAH, IT, IT, IT WOULD BE BEST TO NOT HAVE ANY DEBT, UH, PRIOR TO YOU SEEKING OUT A LOAN.
UM, UH, I MEAN, I'M NOT A SMALL BUSINESS OWNER, BUT FROM WHAT I'VE SEEN, UM, IT IS BETTER TO, YOU KNOW, ASK FOR A LOAN, ESPECIALLY WHEN YOU DON'T NEED IT, UH, BECAUSE MOST OF THE TIME THAT'S WHEN YOU'RE GONNA GET APPROVED.
UM, AND A LOAN, YOU JUST, YOU KNOW, YOU KIND OF PAY THAT BACK AND YOU STILL HAVE A HUNDRED PERCENT, UM, OF YOUR BUSINESS RATHER THAN, YOU KNOW, GETTING, SEEKING AN INVESTOR OR THEY'RE GONNA TAKE A SHARE SHARE OF YOUR BUSINESS.
AND YOU'RE SAYING YOU COULD JUST PAY THAT BACK IN? YES, SIR.
AND THE BUSINESS IS STILL YOURS,
ALRIGHT, SO WE'RE RUNNING UP RIGHT NEXT TO SEVEN O'CLOCK.
UH, I THINK THAT WAS THE ONE WITH ADVANTAGE.
OH, UH, JESSICA HAD A, JESSICA, NOT YOU, JESSICA, ANOTHER JESSICA HAD A QUESTION.
WHAT, WHAT ADVICE WOULD YOU GIVE A STAY AT HOME MOM WHO'S AN IMMIGRANT? HAS BEEN, LET ME, UH, AS AN IMMIGRANT HAS BEEN IN THE US THREE YEARS.
WHERE SHOULD I START? I DO NOT HAVE ANY DEBT, BUT ALSO DON'T HAVE ANY CREDIT.
ARE YOU CURRENTLY EMPLOYED, JESSICA? 'CAUSE I NO.
I HAD MY MARK UP JUST 'CAUSE I DO HAVE MY BABY HERE, SO I APOLOGIZE AS IF SHE MAKES SOME NOISE.
NO, I CURRENTLY, UM, I DON'T WORK, UNFORTUNATELY, WHEN I RECEIVED MY WORK PERMIT, I HAD JUST FOUND OUT I WAS PREGNANT, SO, OKAY.
UM, I ACTUALLY NEVER WENT BACK TO WORK.
NOW, DO YOU HAVE A SPOUSE THAT WORKS IN THE HOUSEHOLD? YES, I DO.
SO WE DO ACCEPT THE CO BORROWERS.
UM, SO IF YOU WANTED TO START YOUR OWN BUSINESS, UH, WE COULD DEFINITELY, UH, ADD YOUR SPOUSE AS A CO BORROWER AND WE WOULD BE LOOKING AT HIS CREDIT, UM, AND HIS CAPACITY, UM, TO SUPPORT YOU, UM, YOU KNOW, IN THIS NEW BUSINESS VENTURE, IF YOU'RE GONNA START YOUR OWN BUSINESS.
UM, BUT I, I DO SUGGEST THAT YOU START OFF, UH, SOMETHING WITH SOMETHING SMALL TO GET YOUR CREDIT GOING WHILE YOU'RE STILL A STAY-AT-HOME MOM.
YOU KNOW, KIND OF, YOU KNOW, GET A CREDIT CARD OR GET YOUR, GET YOUR CREDIT, UH, YOU KNOW, ROLLING, UM, AT, AT LEAST PRIOR TO YOU APPLYING.
THAT WAY YOU COULD HAVE SOMETHING, UM, YOU KNOW, SOME KIND OF, UM, A HISTORY WHENEVER IT COMES TIME TO APPLY.
BUT DEFINITELY, UM, WE DO SEE A LOT OF CO BORROWERS AND THAT, UH, TYPICALLY, UM, HELPS OUT, UM, THE POSSIBILITY OF GETTING APPROVED FOR A LOAN.
NOW THE THING IS, UH, WITH THAT, UM, IT, ALL OF THESE FIVE C CREDIT ARE ALSO GONNA APPLY TO YOUR SPOUSE, RIGHT? SO MM-HMM
UH, CREDIT CAPACITY, UM, ARE, ARE ALSO GONNA APPLY TO HIM.
UM, WE'RE ALSO GONNA LOOK AT WHAT WHATEVER HE SPENDS ON HIS MORG, ON, ON, ON YOU GUYS' MORTGAGE OR VEHICLES AND, AND THINGS OF THAT NATURE.
IF HE'S TOO OVEREXTENDED, UH, TAKING CARE OF BOTH Y'ALL, IT MIGHT NOT, IT MIGHT NOT WORK, BUT IN SOME CASES, MOST CASES IT DOES.
SO WE'RE GOING GIVE IT TO MISS AKIA SIMS, AND I WANNA GIVE A LITTLE BIT OF TIME TO HIT TO, I WROTE IN MY NOTES THAT I WANT TO HEAR A FEEL GOOD STORY AT THE END.
SO MS. AKIA SIMS, WE'RE GONNA KICK IT TO YOU, AND IF ANYBODY ELSE HAS A QUESTION, GO AHEAD AND TYPE IT IN THE CHAT.
BUT MS. NIKIA SIMS, GO AHEAD AND ASK HER A QUESTION.
I'M NOT SURE SHE'S FROM NEW ZEALAND OR AUSTRALIA, BUT
UM, SO MY QUESTION IS ABOUT LOANS AND DEBT RELATED TO, UM, I KNOW THERE'S BEEN LIKE SOME TALK IN THE CHAT ABOUT NO GOOD LOANS OR DEBT.
BENJAMIN FRANKLIN SAID, AN INVESTMENT IN EDUCATION ALWAYS PAYS THE BEST INTEREST.
SO I'M JUST WONDERING IF THE WEIGHT OF STUDENT LOANS FOR LIFT FUND, IF YOU'VE SEEN THAT SOMEONE'S INVESTED, NOT SKIMMING THE GAME VIA, YOU KNOW, PURCHASES, BUT STUDENT LOAN DEBT BECAUSE, YOU KNOW, THERE ARE A LOT OF DIFFERENT OPTIONS AND ONES FIVE C'S, UH, CREDIT TO DEBT INCOME RATIO CAN BE IMPACTED BY STUDENT LOANS.
SO I WAS JUST WONDERING HOW THE FUND LOOKS AT THAT, ESPECIALLY IF IT'S A FIELD OR THAT INVESTMENT IS KIND OF WHAT THE BUSINESS, YOU KNOW, IS CENTERED AROUND FRANCISCO.
WERE YOU GONNA MENTION SOMETHING? YOU WANT ME TO TAKE THAT? YOU CAN TAKE THAT MM-HMM
SO, UM, SO WHEN IT COMES TO, TO, UH,
[01:30:01]
STUDENT LOANS, UH, I KNOW FOR A WHILE WHEN I STARTED AT LIFTFUND, UH, YOU KNOW, THEY KEPT ON GETTING PUSHED BACK AND PUSHED BACK.SO IF WE SAW THOSE ON YOUR CREDIT, UM, TYPICALLY YOU DIDN'T TAKE THOSE INTO ACCOUNT.
UM, BUT WE DO WANNA SEE A PLAN, UM, UM, AS FAR AS HOW YOU'RE GONNA PAY THOSE BACK WHENEVER THAT TIME DOES COME.
BUT I KNOW FOR A WHILE WE DIDN'T TAKE, WE DIDN'T HOLD YOU ACCOUNTABLE FOR HAVING THOSE STUDENT LOANS AND NOT PAYING THEM, UH, DUE TO THEIR, THEIR BEING IN FORBEARANCE.
AND IN INSTANCES OF DISABLED VETERANS, SINCE YOU CAN'T GET LOANS WIPED OUT, THERE ARE SOME CONTINGENCIES IF YOU HAVE DISABILITY.
SO WITH THAT, YOU KNOW, IF SOMEONE HAS A DISABILITY OR IS IT VE VETERAN? SO WOULD THAT LIKEWISE BE, COME INTO PLAY IF IT'S GONNA BE WIPED OUT BASED ON APPLYING FOR THAT? YES, DEFINITELY.
SO, UM, I, I KNOW IF YOU'RE A HUNDRED PERCENT DISABLED, UH, YOU CAN'T GET YOUR STUDENT LOAN, UH, UH, FORGIVENESS.
UM, SO WE COULD DEFINITELY TAKE THAT INTO ACCOUNT AS WELL.
UM, YOU KNOW, IF, LET'S SAY IF YOU DO HAVE THE STUDENT LOANS ON YOUR CREDIT, UH, WE COULD DEFINITELY TALK TO OUR UNDERWRITING TEAM LIKE, HEY, YOU KNOW, THEY'RE IN THE PROCESS OF GETTING, UH, THESE, UH, CLEARED OUT.
UM, AND THEN, UM, HOPEFULLY WE CAN WORK OUT A DEAL WITH THEM.
DO I HAVE ANY VETERANS IN THE CHAT HERE? I'M HERE WHO'S A MARINE AND A ARMY.
RIGHT, RIGHT ON PHI, I'M THE AIR FORCE.
OH, MISS ANTO HAVE, SO WE, WE HAVE A SPECIAL, WE HAVE A SPECIAL RATE FOR VETERANS, RIGHT? YEAH, I JUST MENTIONED THAT.
SO IF YOU ARE A, IF YOU ARE A VETERAN OFFICE TO SINGLE ANYBODY OUT.
UM, BUT, UH, FOR VETERANS WE DO OFFER A 5% RATE.
ALL WE WOULD NEED, UM, IS A DD TWO 14 OR, OR ANYTHING SHOWING VETERAN STATUS.
MS. JACQUELINE HAS A, SHE'S MARRIED TO A VETERAN.
WE JUST SAID WE WOULD JUST NEED, UH, YOUR SPOUSE'S, UH, DD TWO 14.
SO VETERANS AND SPOUSES OF VETERANS, THEY'RE ELIGIBLE FOR THAT 5% RATE.
SO WE'RE ABOUT AT SEVEN, WE'RE ABOUT 7 0 5.
SO I WANTED TO GIVE YOU GUYS A FEW MINUTES TO TELL US ABOUT A STORY THAT WAS MOST MEMORABLE TO YOU WHILE YOU ARE WORKING IN YOUR CURRENT POSITION.
YOU KNOW, WE'VE, WE'VE, WE, WE JUST NEED SOME INSPIRATION.
WE'VE BEEN GOING THROUGH LIFT OFF HOUSTON FOR A COUPLE WEEKS NOW.
WE'VE BEEN IN A COUPLE SESSIONS AND SOMETIME IT COULD BE A LITTLE DISCOURAGING, BUT COULD YOU EACH GIVE US A STORY ABOUT SOMETHING THAT IMPACTED YOU PERSONALLY ABOUT SOMEBODY WANTING TO START A BUSINESS? ALEJANDRO, YOU CAN GO FIRST.
OH MAN, I WAS GONNA ASK, HE'S GONNA GO, FIRST OF ALL, I THOUGHT OF ONE
MR. FRANCISCO HAS THAT REALLY SOFT BEEN, HE HAS THAT REALLY, REALLY SOFT TONE THAT JUST KIND OF SETS YOU AT EASE,
SO, UM, I HAD THE OPPORTUNITY TO HELP, UH, THESE GENTLEMAN THAT, UH, HE, HE'S A TRUCK, A COMMERCIAL TRUCK DRIVER, AND HE START DRIVING FOR HIS COUSIN.
AND AFTER THREE YEARS HE DECIDED TO, TO PURCHASE HIS OWN TRUCK.
BUT BECAUSE HIS CREDIT WASN'T, UM, IT WAS NOT, UH, THE CREDIT SCORE WAS NOT AFFORDABLE TO GET A NEW TRUCK, HE DECIDED TO GO WITH A HARD MONEY LENDER AND YOU'RE READY TO HEAR THE INTEREST RATE.
SO TWO YEARS AGO, HE CAME TO MY OFFICE AND HE TOLD ME THE STORY, AND HE WAS WORKING FROM MONDAY TO MONDAY TO SUNDAY FOR MANY, FOR MANY MONTHS.
AND HE ONLY WANT TO, UH, TO REFINANCE THE TRUCK.
AND THANKS GOD, WE WERE ABLE TO, TO HELP THEM, TO HELP HIM TO, TO REFINANCE HIS TRUCK AND WITH A 9% INTEREST RATE FROM 28 TO 9%.
AND HE, HE, HE TOLD ME, I UNDERSTOOD THAT SOMETIMES I NEED TO, I, I WAS NOT READY TO GET A TRUCK, BUT I, BUT I DID, AND I HAD TO WORK FOR, FOR, FOR MANY MONTHS TO PAY THE MONTHLY NOTE BECAUSE SOMETIMES, UM, WE GOT SO EXCITED.
SO I WA I WAS SO HAPPY THAT LEAD FORM WERE ABLE, I MEAN, THAT WE WERE ABLE TO HELP HIM TO REFINANCE THAT BIG LOAN.
I MEAN THAT BIG LOAN, BECAUSE HE WAS OVER A HUNDRED THOUSAND AT 28%.
CAN YOU IMAGINE HOW MUCH HE WAS PAYING? SO I WAS ABOUT TO ASK YOU, HOW MUCH DID IT GO DOWN FROM 28 TO 9%? MY, HE SAID AT LEAST HE SAVED AT LEAST $900 A MONTH.
HE WAS WORKING FROM MONDAY TO SUNDAY TO PAY THE LOAN BACK.
I MEAN, HE, I MEAN, I DON'T, MAYBE FOR ONE YEAR.
SO THAT WAS PROBABLY WAS, IS, IS IS MY MOST MEMORABLE, UM, UM, CASE THEY EVER HAVE IN MY LIFE.
[01:35:01]
HAD TIME TO THINK.YEAH, SO, SO NOT TO PIGGYBACK OFF OF YOU, BUT FOR, FOR ME, IT WAS, IT WAS VERY SIMILAR.
UH, I HAD THIS, UH, THIS WOMAN WHO OWNED A HOTSHOT BUSINESS.
UH, FOR THOSE THAT DON'T KNOW, A HOTSHOT IS YEP.
UH, PRETTY MUCH JUST A, A, YOU KNOW, A TRUCK.
YOU KNOW, THEY'RE, YOU JUST, UH, TAKE LOADS FROM, FROM POINT A TO POINT B, RIGHT? IT DOESN'T HAVE TO BE AN 18 WHEELER, JUST A, PRETTY MUCH A, IT'S, UM, MOST OF THE TIME IT'S A DODGE WITH, UM, WITH A GOOSENECK.
AND, UM, UH, GOING BACK TO WHAT WE WERE SAYING EARLIER ABOUT, YOU KNOW, DOING YOUR HOMEWORK ON THE, THESE SPECIFIC LENDERS, UH, SHE WAS ALSO WORKING, YOU KNOW, SEVEN DAYS A WEEK, YOU KNOW, JUST TO STAY AFLOAT, JUST TO KEEP HER BUSINESS ALIVE BECAUSE THEY WERE PRETTY MUCH TAKING EVERYTHING THAT SHE WAS MAKING.
UM, IT WAS DEFINITELY ONE OF MY FASTEST LOANS, UH, THAT I'VE EVER HAD TO PUT, UH, PUT THROUGH.
UM, I THINK, UH, AND THIS IS ONLY BECAUSE SHE HAD GOOD CREDIT AND, AND, UH, AND, AND GOOD INCOME, BUT I BELIEVE, UH, WE GOT HER FUNDED IN ABOUT A WEEK.
UM, I DID HAVE TO MAKE A LOT OF PHONE CALLS, UH, YOU KNOW, KIND OF MOVE SOME THINGS AROUND AND SAY, HEY, UH, THIS LADY NEEDS TO GET HER MONEY ASAP.
UH, SHE QUALIFIES, BUT WE NEED TO, YOU KNOW, KIND OF PUT IT ABOVE EVERYBODY ELSE 'CAUSE SHE'S NOT GONNA STAY ALIVE MUCH LONGER IF WE, UM, IF WE DON'T GIVE HER THIS MONEY.
SO FORTUNATELY WE WERE ABLE TO GET HER OUT OF THAT, UM, THAT HIGH INTEREST LOAN AND, UH, GET HER INTO SOME, YOU KNOW, UH, MUCH EASIER MONTHLY PAYMENTS, YOU KNOW, ONE TIME MONTHLY PAYMENT.
AND I BELIEVE SHE'S ALREADY DONE PAYING THE LOAN BACK.
I THINK IT WAS A THREE YEAR LOAN AND SHE PAID IT OFF IN LESS THAN A YEAR.
SHE JUST NEEDED TO GET OUTTA THAT.
SO THOSE ARE MY FAVORITE ONES, YOU KNOW, HELPING, HELPING OUT THOSE THAT, UM, UM, THAT ARE NOT EDUCATED IN THE MATTER, DIDN'T DO THEIR HOMEWORK, UM, TO GET THOSE, UM, YOU KNOW, REASONABLE LOAN AMOUNTS.
JUST DO, DO, DO Y'ALL OFFER LIKE CLASSES TO HELP PEOPLE OUTSIDE OF THIS RIGHT HERE TO EDUCATE THEM ABOUT THEIR CREDIT? YES.
LIKE I, LIKE I MENTIONED EARLIER, WE DO HAVE THE, THE WOMEN'S BUSINESS CENTER.
UM, YOU KNOW, UH, MATTER OF FACT, I'LL PUT MY EMAIL ON HERE.
UM, FRANCISCO, I DUNNO IF YOU WANNA DO THE SAME MM-HMM
THAT WAY YOU GUYS COULD SHOOT ME AN EMAIL AND I COULD SEND YOU GUYS, UH, SOME ADDITIONAL INFORMATION IN TERMS OF RESOURCES AND EVERYTHING THAT LIFT PHONE OFFERS.
UM, LIKE I SAID THOUGH, WE DO HAVE THE WOMEN'S BUSINESS CENTER, THEY OFFER ONLINE WORKSHOPS, TRAININGS, AND ONE-ON-ONE CONSULTATIONS WITH BUSINESS ADVISORS.
AND THEIR MISSION IS TO, UM, HELP GET YOU LOAN READY.
UM, FANTASTIC TO SEND YOU OVER TO LENDING, AND THEN WE CAN PROCESS YOUR LOAN.
FANTASTIC GENTLEMEN, THANK YOU SO MUCH.
SO WE SEE THEY PUT THEIR INFORMATION OVER IN THE CHAT, YOU CAN BE SURE TO TAKE THEIR EMAIL ADDRESS SO YOU CAN SHOOT 'EM AN EMAIL THAT THEY, THEY, THEY HAVE ALWAYS BEEN MORE THAN HELPFUL AND MORE THAN ABLE TO GET YOU THE HELP THAT YOU NEED TO ANSWER THE QUESTION THAT YOU ANSWER.
I KNOW I'VE BEEN IN MEETINGS BEFORE AND WEBINARS WHEN THEY SAY, WELL, HEY, ASK AS MANY QUESTIONS AS YOU CAN.
WELL, I'M TRYING TO LISTEN, I CAN'T ASK QUESTIONS AND LISTEN, I'M TRYING TO LISTEN TO THIS.
SO I TRIED TO KICK IN AND ASK A COUPLE QUESTIONS, HOPEFULLY I COVERED THEM.
GENTLEMEN, BEFORE WE CL BEFORE WE WRAP UP HERE, DO Y'ALL WANNA GIVE ANY CLOSING WORDS TO THE PEOPLE THAT ARE IN THE COMPETITION? UM, MAKE SURE TO PREPARE, UH, TO, UM, TO FIND A GOOD BUSINESS MENTOR.
IF YOU WANT TO ESTABLISH A BUSINESS, MY RECOMMENDATION IS YOU NEED TO HAVE A, A BUSINESS MENTOR HERE IN HOUSTON.
WE HAVE DIFFERENT ORGANIZATIONS.
SCORE IS ONE OF OUR PARTNERS AND THERE'S PEOPLE, THE BUSINESS MENTOR FROM SCORE, THEY'RE AMAZING.
AND ALSO SBDC, THEY PROVIDE BUSINESS MENTORS AS WELL.
AND, UM, IF YOU'RE A BUSINESS, UH, IF YOU, IF YOU WANT TO ESTABLISH A NEW BUSINESS OR IF YOU'RE A BUSINESS OWNER, YOU NEED TO HAVE A FREE BUSINESS MENTOR.
UM, BECAUSE SOMETIMES YOU HAVE A, A LOT OF YOU HAVE IDEAS AND SOMETIMES YOU ASK MAYBE YOUR COUSIN, YOUR MOTHER, UM, YOUR FRIEND, AND, AND SOMETIMES WE'RE NOT EXPERT.
SO YOU NEED TO FIND AN EXPERT THAT THEY CAN HELP YOU, THEY CAN GIVE YOU GOOD ADVICES AND TAKE ADVANTAGE OF ALL THESE, UH, RESOURCES THAT WE HAVE IN THE CITY SCORE.
ALRIGHT, WE GOTTA SCORE SBCD, MR. ALEJANDRO, WHAT YOU GOT FOR US? YOU CLOSING REMARKS, BEN? UH, I GUESS IF YOU WANT TO START A SMALL BUSINESS, YOU KNOW, DO IT NOW.
UH, I, I DO RECOMMEND THAT YOU TAKE CARE OF YOUR CREDIT PRIOR TO DOING SO.
UH, IF YOU FOLLOW THE FIVE IN THERE, LIKE I SAID, IF YOU GUYS SEND ME AN EMAIL, I'LL SEND YOU GUYS, UH, THE FIVE C THE CREDIT, WHICH IS PRETTY MUCH GONNA TELL YOU EVERYTHING THAT YOU NEED TO DO, UM, TO BE APPROVED FOR A LOAN.
UM, AND DEFINITELY SPEAK TO ONE OF US PRIOR TO APPLYING.
UM, THAT WAY WE CAN KIND OF LOOK AT YOUR STUFF PRIOR TO AND WE WILL SAY, HEY, YOU'RE A GOOD CANDIDATE, UH, FOR, UH, TO GET APPROVED OR NO, YOU'RE NOT FIX THIS FIRST.
ALL RIGHT? WE DO GET A LOT OF CLIENTS THAT JUST GO AHEAD AND APPLY WITHOUT SPEAKING TO SOMEBODY AND THEN THEY WERE WONDERING WHY THEY GOT REJECTED AND IT'S LIKE, WELL WE DIDN'T GET TO TALK TO YOU PRIOR TO, SO MM-HMM
[01:40:01]
ONE.UH, BECAUSE TYPICALLY WE SEE A LOT OF CLIENTS THAT ARE, UM, OVEREXTENDED.
UM, THAT'S DEFINITELY NOT A PLACE WHERE YOU WANT TO BE AND DON'T USE YOUR PERSONAL CREDIT CARD FOR YOUR BUSINESS.
WHY I
AMERICAN EXPRESS AND DISCOVER.
SO THANK Y'ALL GENTLEMEN, THANK YOU SO VERY, VERY MUCH.
WE LOOK FORWARD TO THE NEXT TIME WE GET TO HAVE YOU.
WE'LL HAVE ANOTHER ONE AND WE'LL ASK SOME MORE QUESTIONS.
I'M GONNA TELL, I'M GONNA JUST PUT YOU ON THE SPOT AGAIN AS A QUESTION COME I'M GONNA ASK IT.
SO JUST BE READY FOR ANYTHING.
OKAY, SO I'LL KICK IT OVER TO JESSICA SO SHE COULD READ THIS INFORMATION TO EVERYBODY.
I WANTED TO MAKE SURE EVERYBODY SAW IT.
THIS WAS AN IMPORTANT SLIDE THAT JESSICA HAD UP.
I WAS NOT HERE IN THE BEGINNING.
UM, I WANTED TO GIVE THESE ANNOUNCEMENTS IN THE BEGINNING, BUT WE CAN JUST DO 'EM NOW.
SO AS SOME OF YOU KNOW, WE HAD TO CANCEL OUR BUSINESS FINANCIALS WORKSHOP, UM, LAST MINUTE.
SO THAT HAS BEEN RESCHEDULED FOR SATURDAY, SEPTEMBER 30TH AT 10:00 AM UH, WE HAD A MAKE UPDATE ON THE, UM, ORIGINAL CALENDAR.
SO WE WENT AHEAD AND JUST FILLED IN THAT WORKSHOP FOR THE MAKEUP DATE.
AND WE'VE HAD A LOT OF QUESTIONS ABOUT FINANCIAL MENTORS.
UM, UNFORTUNATELY FOR THIS YEAR, UM, CAPITAL ONE IS UNABLE TO, UM, ACCOMMODATE WITH THE FINANCIAL MENTORS JUST WITH THE AMOUNT OF PARTICIPANTS WE DO HAVE.
SO WE ARE GONNA BE DOING FINANCIAL MENTORS THROUGH SCORE AND THERE'S TWO WAYS THAT YOU CAN MEET THIS REQUIREMENT.
IF YOU TALK WITH, UM, YOUR ORIGINAL MENTORS, THE ONE WHO YOU DO YOUR UM, BUSINESS MENTOR SESSIONS WITH AND THEY FEEL LIKE THEY CAN ANSWER YOUR FINANCIAL QUESTIONS, YOU'RE CONFIDENT IN THEM BEING ABLE TO ANSWER YOUR FINANCIAL QUESTIONS, YOU CAN DO A THIRD APPOINTMENT WITH THEM AND THAT WILL COUNT FOR YOUR FINANCIAL REQUIREMENT AS LONG AS YOU MEET WITH THEM THREE TIMES.
OR YOU CAN DO A NEW REQUEST THROUGH SCORE.
SO THAT SAME SCORE REQUEST FORM THAT YOU USED ORIGINALLY, UM, YOU CAN MAKE A SECOND REQUEST AND REQUEST A FINANCIAL EXPERT.
SO SCORE DOES HAVE FINANCIAL EXPERTS SPECIFICALLY FOR FINANCES.
SO IF YOU'RE SCORE MENTOR, UM, YOU FEEL LIKE THEY CAN'T REALLY ANSWER YOUR FINANCIAL QUESTIONS OR YOU WOULD LIKE SOMEBODY, UM, WHO IS A FINANCIAL EXPERT, YOU CAN UM, REQUEST A ANOTHER, UM, MENTOR FROM SCORE.
SO THOSE ARE YOUR TWO OPTIONS.
IF YOU HAVE ANY QUESTIONS ON THAT, FEEL FREE TO SEND ME AN EMAIL.
UM, I'M SURE A LOT OF YOU KNOW MY EMAIL BY NOW, BUT I'M JUST GONNA TYPE IT IN THE CHAT JUST IN CASE.
UM, JESSICA DOT DEL GRECO@HOUSTONTX.GOV.
YOU CAN SEND ME, UM, AN EMAIL IF YOU'RE KIND OF CONFUSED ON THE INSTRUCTIONS, WE WILL BE SENDING OUT AN EMAIL ABOUT THIS AS WELL.
UM, JUST WANTED TO GO AHEAD AND GET THE ANNOUNCEMENT OUT THERE.
I WANTED TO LET EVERYONE KNOW THAT THE, THE CALENDAR HAS BEEN UPDATED, UM, FOR THE MAKEUP WORKSHOP AS WELL AS, UM, WE HAVE TWO IN-PERSON WORKSHOPS AT THE END AND THE LOCATION HAS BEEN ADDED, UM, TO THOSE, THE REGISTRATION LINK.
THANK YOU SO KINDLY JESSICA, REALLY APPRECIATE ALL THAT INFORMATION.
WE ALL SAW IT BLACK PRINT, WHITE PAPER, SO WE ALL KNOW AND WE, IF YOU HAVE ANY QUESTIONS, DON'T HESITATE TO EMAIL HER.
JESSICA DOT DEL GRECO HOUSTON TX.GOV OR HOUSTON AT LIFTOFFHOUSTON@HOUSTONTX.GOV.
DON'T HESITATE TO SEND ANY QUESTIONS THERE.
NANCY, GO AHEAD AND START OUR CHECKOUT.
AND REMEMBER THAT THE, YOU HAVE TO ENTER THE CHECKOUT TWICE ON THIS SLIDE HERE.
REMEMBER YOU HAVE 48 HOURS TO ENTER IT INTO THE, INTO THE PORTAL.
THE LIFT OFF HOUSTON PORTAL, THAT'S WHERE YOU SEE YOUR GREEN CHECKS AS YOU GO THROUGH THE SLIDES AND ALL THAT.
THAT'S WHERE YOU SEE ALL OF THOSE.
SO YOU HAVE TO ENTER IT TWICE.
YOU ENTER IT ONCE ON THE FORM BUILD AND THE SECOND TIME YOU ENTER IS ON A LIFT OFF HOUSTON PORTAL.
IF YOU HAVE ANY PROBLEMS, DON'T HESITATE TO GIVE JESSICA, UH, SEND THEM AN EMAIL AT LIFTOFFHOUSTON@HOUSTONTX.GOV.
REMEMBER, YOU HAVE TO GO TO THE LIFTOFF HOUSTON PORTAL@LIFTOFFHOUSTON.COM.
ALL OF EVERYBODY'S GETTING IT.
OH, I'M SORRY TO PUT IT IN THE CHAT.
SO NOW THE LINK IS IN THE CHAT AND THE QR CODE IS ALSO ON THE SCREEN.
AFTER YOU'VE COMPLETED THAT, YOU'RE FREE TO GO.
THANK YOU SO MUCH FOR YOUR TIME AND ATTENDANCE TONIGHT.
HOPE YOU HAD A GREAT LABOR DAY AND HOPE YOU HAVE A GOOD WEEKEND COMING UP.
AGAIN, THE CODE IS, UM, BUILD, BUILD.
[01:45:01]
GETTING IT.IS THIS THE CORRECT LINK? IT, I THINK THIS WAS THE ONE FROM THE BEGINNING OF THE, LET'S MAKE SURE, LET'S MAKE SURE I PUT THE RIGHT ONE IN.
IS THE ONE ON THE SCREEN? YEAH, THAT IT, IT IS THE ONE WE HAD INITIALLY.
OH, AND I PUT THE, I PUT THE RIGHT ONE.
SORRY, I PUT THE RIGHT LINK IN THE CHAT.
THAT'S THE RIGHT QR CODE THERE.
YEAH, SO, UM, THERE'S BEEN SOME, SO LIKE WE'VE SAID, YOU'RE GONNA DO THE CODE TWICE.
SO, UM, YOU DO THE CHECKOUT, WHICH IS THIS RIGHT HERE, WHAT YOU SEE ON THE SCREEN, AND THEN YOU GO INTO THE LIFTOFF HOUSTON.COM PORTAL AND YOU COMPLETE THE SURVEY.
SO THE REASON WE DO THE CHECKOUTS HERE IS, SO IF YOU DO FORGET TO DO IT IN THE 48 HOURS, WE NEED TO HAVE SOME SORT OF VERIFICATION THAT YOU STAYED UNTIL THE END.
UM, SO WHEN YOU DO THESE CHECKOUT CODES, THAT'S YOUR ADDITIONAL VERIFICATION THAT YOU STAYED UNTIL THE END.
SO PLEASE MAKE SURE, UM, YOU WRITE DOWN YOUR CODE AS WELL AS COMPLETE THIS.
UM, BUT THE MOST IMPORTANT THING IS THAT YOU GO TO LIFTOFF HOUSTON.COM AND YOU COMPLETE THE SURVEY.