[00:00:15]
I WOULD LIKE TO BRING UP A REPRESENTATIVE FROM THE CHURCH WHO IS A LIFELONG THIRD WARD RESIDENT, AND THE, UH, PRESIDENT PROBABLY OF THE, UH, CHRIS HOLLANDS FAN CLUB.
I AM SUPPOSED TO INTRODUCE OUR CITY CONTROLLER, AND I AM OVERJOYED TO INTRODUCE CHRISTOPHER GEORGE HOLLANDS, A HISTORY MAKING YOUNG MAN.
CHRIS IS A FOURTH GENERATION HOUSTONIAN WHOSE GRANDPARENTS FATHER AND AUNT ARE GRADUATES OF THE HISTORIC JACKIE H SENIOR HIGH SCHOOL.
PARENTHETICALLY, CHRIS GRADUATED FROM HIGH TOWER HIGH SCHOOL, A SUBURBAN REPLICA OF JACK YATES SENIOR HIGH SCHOOL.
GROWING UP, CHRIS'S FAMILY'S LIFE WAS PUNCTUATED WITH FAITH, KINDNESS, AND SERVICE TO OTHERS.
HIS GRANDPARENTS, GEORGE AND MARY HOLLANDS WERE DEVOTED MEMBERS OF THIS CHURCH.
HIS FATHER WAS A HOUSTON POLICE OFFICER FOR MORE THAN 30 YEARS, WHERE HE EARNED THE HIGHEST COMPLIMENT FROM HIS PEERS.
THEY CALLED HIM A COPS COP, AND HIS MOTHER AND DAD OPENED THEIR HOME TO MORE THAN 20 FOSTER CHILDREN, WHILE ALSO RAISING CHRIS AND HIS SISTERS.
SERVICE TO OTHERS IS SIMPLY IN CHRIS'S DNA.
CHRIS HAS SERVED AS VICE PRESIDENT OF FINANCE FOR THE TEXAS DEMOCRATIC PARTY.
HE WAS THE YOUNGEST AND THE FIRST AFRICAN-AMERICAN TO SERVE AS HARRIS COUNTY CLERK, WHERE HIS VISIONARY LEADERSHIP AND MANAGEMENT EXPERTISE BROUGHT US 24 HOUR VOTING DRIVE THROUGH VOTING AND A RECORD SHATTERING 22, I MEAN, 2 MILLION VOTES BEING CAST.
CHRIS ALSO SERVED AS A WHITE HOUSE INTERN DURING THE OBAMA ADMINISTRATION.
HE HAS SERVED ON THE BOARD OF METRO AND THE EAST DOWNTOWN TURS.
CHRIS EARNED A BACHELOR'S, BACHELOR'S DEGREE IN FINANCE FROM MOREHOUSE COLLEGE WHERE HE GRADUATED SUMMA C*M LAUDE, AS WELL AS AN MBA FROM HARVARD UNIVERSITY AND A LAW DEGREE FROM YALE UNIVERSITY, WHICH HE EARNED SIMULTANEOUSLY AND GRADUATED WITH HIGH HONORS.
THE BULK OF HIS PROFESSIONAL CAREER HAS BEEN AS A HIGHLY SUCCESSFUL MANAGEMENT CONSULTANT WITH MCKENZIE AND COMPANY, AND MCKENZIE IS THE PREMIER CONSULTING FIRM TO GLOBAL AND FORTUNE 500 COMPANIES.
AT MCKENZIE, CHRIS BECAME AN EXPERT ON TRANSFORM, TRANSFORMING THE OPERATIONS OF LARGE GOVERNMENT AGENCIES FROM BEING BLOATED AND INEFFECTIVE BUREAUCRACIES TO OPERATING AS EFFICIENT AND PRODUCTIVE PUBLIC RESOURCES.
CHRISTOPHER GEORGE HOLLANDS IS SIMPLY A HUMBLE SERVANT OF GOD WHO HAS BEEN ASSIGNED TO PUBLIC SERVICE FOR SUCH A TIME AS THIS.
HIS GIFTS ARE BEING ABLE TO BRING CLARITY THAT THAT WHICH IS CONFUSING TO CREATE CALM OUT OF CHAOS, AND TO BRING SIMPLICITY AND UNDERSTANDING TO THAT WHICH IS COMPLEX, BUT EVEN GREATER IS HIS GIFT OF BEING DEVOTED TO HIS GORGEOUS AND EQUALLY TALENTED WIFE, MORGAN AND THEIR AMAZING CHILDREN.
VIVIAN AND GEORGE COMMUNITY FAMILY, PLEASE WELCOME OUR CITY CONTROLLER, CHRISTOPHER GEORGE HOLLANDS.
THANK YOU SO MUCH FOR THAT, THAT WARM INTRODUCTION.
I THINK MY TEAM NEEDS TO BORROW THAT FROM YOU SO WE CAN PUT IT ON OUR, OUR WEBSITE.
BUT YOU OBVIOUSLY HAVE BEEN SUCH A DEAR FRIEND AND ADVISOR TO ME, YOU AND YOUR ENTIRE FAMILY, AND, AND SO OFTEN YOU'VE BEEN, UH, PART OF MY CONSCIENCE, AND SO I APPRECIATE THAT.
I ALSO, UH, WANTED TO THANK EACH OF YOU FOR BEING HERE.
[00:05:01]
TIME THAT WE'VE SCHEDULED THIS, UH, TWICE WE'VE HAD TO POSTPONE OR RESCHEDULE IT BECAUSE OF, UH, THE SEVERE WEATHER THIS COMMUNITY HAS FACED.AND SO I WANT TO THANK Y'ALL NOT ONLY FOR CARING ENOUGH ABOUT THE FUTURE OF YOUR CITY TO COME AND LEARN MORE ABOUT OUR BUDGET, UH, BUT ALSO FOR PERSEVERING THROUGH, UH, A COUPLE OF RESCHEDULES.
PROUD TO BE HERE THIS EVENING AT AT WHEELER AVENUE BAPTIST CHURCH, UH, MY HOME CHURCH, AND ONE THAT HAS HAD, UH, SUCH AN INCREDIBLE IMPACT, UH, ON THE CITY OF HOUSTON.
AND A LOT OF THAT IMPACT, UM, HAS TO DO WITH ITS, ITS FOUNDING PASTOR.
WE ARE GRATEFUL FOR THE LIFE AND FOR THE SERVICE OF PASTOR EMERITUS, REVEREND WILLIAM ALEXANDER LAWSON.
UH, HE SERVED THIS COMMUNITY AND HE SERVED, UH, HIS FAITH WITH DISTINCTION AND WITH HONOR, AND HE WAS A MAN OF MANY ROLES, A FATHER, A GRANDFATHER, A MESSENGER OF GOD, A CIVIL RIGHTS CHAMPION, UH, SOMEONE WHO WAS DEVOTED TO THIS COMMUNITY, UH, AND WHO WAS A COUNSELOR AND A FRIEND.
THIS IS, UH, OUR FIRST EVER, TO OUR KNOWLEDGE, THE FIRST EVER CONTROLLER'S TOWN HALL.
UM, YOUR CONTROL IS SUPPOSED TO BE YOUR, YOUR, YOUR TAXPAYER WATCHDOG, THE PERSON WHO IS KEEPING AN EYE ON YOUR FINANCES, THE PERSON WHO IS, UH, BRINGING TRANSPARENCY TO THE COMMUNITY, AND WHAT OTHER WAY TO BRING TRANSPARENCY TO THE COMMUNITY, THEN TO COME AND BE IN THE COMMUNITY AND CARRY THIS MESSAGE DIRECTLY.
AND SO IT'S BEEN A REGULAR THING FOR MYSELF AND MEMBERS OF MY TEAM TO, TO VISIT, UH, CIVIC CLUBS, TO VISIT PROFESSIONAL ORGANIZATIONS AND TALK ABOUT THE CITY IN WAYS THAT, THAT CONTROLLERS, UH, NEVER HAVE.
BUT WE'RE GONNA MAKE THIS A HABIT, AND THIS IS GONNA BE A REGULAR THING, BUT WE APPRECIATE YOU ALL BEING AT OUR, UH, INAUGURAL, UH, TOWN HALL.
UH, MY STATE REPRESENTATIVE JUST WALKED IN THE DOOR, UH, AND, UH, HER NEWLY HIRED DISTRICT DIRECTOR.
AND SO
I SEE A WHOLE LOT OF OTHER FRIENDS, UH, IN THE AUDIENCE TODAY.
BUT LISTEN, UM, ARVA, YOU DID SUCH A GREAT JOB WITH THAT INTRODUCTION.
AND SO, UH, I WON'T GO ANY FURTHER INTO MY BACKGROUND, BUT I'LL TALK ABOUT MY ROLE AS YOUR CITY CONTROLLER.
AGAIN, IT'S MY PRIVILEGE AND IT'S MY RESPONSIBILITY TO LOOK AFTER THE INVESTMENTS THAT YOU'RE MAKING IN OUR CITY AND TO EN ENSURE THAT THAT INVESTMENT IS PAYING A DIVIDEND BACK INTO YOUR LIFE AND THE LIVES OF YOUR FAMILY, UH, IN YOUR NEIGHBORHOOD, AND IN EVERY NEIGHBORHOOD ACROSS HOUSTON.
I KNOW WE'RE RIGHT HERE IN THIRD WARD, BUT I KNOW SOME OF OUR FRIENDS ARE FROM THE WEST SIDE, FROM THE NORTH SIDE, AND I PROMISE YOU THAT OUR NEXT TOWN HALL WILL BE IN YOUR PART OF TOWN.
ALRIGHT, UM,
IT ALSO REQUIRES US COLLABORATING AND COMING TOGETHER COLLECTIVELY.
YOU KNOW, MY OFFICE'S COMMITMENT, WHICH WILL GO INTO MORE IS ABOUT TRANSPARENCY.
IT'S ABOUT ACCOUNTABILITY, AND IT'S ABOUT INNOVATION.
IT'S ABOUT BRINGING NEW IDEAS, UH, TO CITY GOVERNMENTS SO THAT WE CAN BETTER SERVE YOU.
AND SO TONIGHT'S TOWN HALL IS DESIGNED SPECIFICALLY, UH, TO PROVIDE INSIGHTS AROUND OUR CITY BUDGET.
AND I'LL TALK A LITTLE BIT, I THINK WHAT WE HAVE BEHIND US IS ABOUT THE, THE ROLE OF THE CITY CONTROLLER.
UM, I DID NOT CREATE THIS BUDGET.
THE, THE ROLE OF THE CONTROLLER, UH, IS NOT TO CREATE A BUDGET.
UH, IT'S, IT IS TO LOOK OUT FOR YOU TO LOOK OUT FOR THE DOLLARS THAT ARE BEING SPENT TO MAKE YOU AWARE OF WHAT'S IN THIS PROPOSED BUDGET, WHICH IS GONNA GO UP FOR A VOTE FOR THE FIRST TIME, UH, TOMORROW AT CITY COUNCIL.
AND SO WE'RE DOING THAT JOB TALKING TO YOU ABOUT WHAT'S IN HERE.
AND YOU MIGHT HAVE SOME QUESTIONS LATER ON IN THE EVENING AND SAY, WELL, WHY IS IT LIKE THAT? AND I MAY DIRECT YOU TO YOUR MAYOR, OR I MAY DIRECT YOU TO YOUR MEMBER OF CITY COUNCIL BECAUSE THEY'RE GOING TO HAVE A VOTE ON, UH, ON THIS BUDGET AND WHY IT'S A CERTAIN WAY AND WHY IT'S NOT.
UH, MY JOB IS TO TELL YOU WHAT IT IS AND, AND TRY TO SIMPLIFY THAT AND PUT THAT IN A LANGUAGE, UH, THAT YOU UNDERSTAND.
[00:10:06]
SO, UH, WHY DON'T WE GO JUST A LITTLE BIT BACKWARDS JUST SO I CAN, I CAN TALK ABOUT WHAT THE CONTROLLER DOES BECAUSE I, I JUST SHARED WHAT, WHAT WE DON'T DO.UH, ONE OF THE THINGS THAT WE DO IS WE'RE YOUR CITY AUDITOR.
IT'S OUR JOB TO CRACK DOWN ON WASTE, FRAUD, AND ABUSE.
SO THOSE DOLLARS ARE NOT FLOWING OUT TO PEOPLE THEY SHOULDN'T GO TO.
THEY'RE IN OUR CITY'S COFFERS AND CAN BE SPENT AND INVESTED IN THINGS THAT MATTER MOST TO YOU.
IN ADDITION, OUR AUDITING FUNCTION, IT'S NOT JUST ABOUT WASTE AND FRAUD, BUT IT'S ABOUT MAKING US MORE EFFICIENT AND EFFECTIVE.
UH, MANY OF YOU MIGHT HAVE QUESTIONS ABOUT, YOU KNOW, WHY YOUR TRASH DOESN'T GET PICKED UP ON TIME.
YOU MIGHT HAVE QUESTIONS ABOUT, YOU KNOW, WHEN A ROAD PROJECT NEAR YOUR HOME IS GOING TO BE FINISHED, UM, YOU MIGHT WONDER WHY IT FLOODS MORE IN YOUR NEIGHBORHOOD THAN IN ANOTHER ONE, RIGHT? AND THAT'S ALL ABOUT THE EFFECTIVENESS OF, OF CITY SERVICES AS WELL AS EQUITY.
AND, AND IT'S OUR JOB THROUGH PERFORMANCE AUDITS TO TAKE A LOOK AT THE EFF, THE EFFICIENCY AND EFFECTIVENESS OF CITY GOVERNMENT AND BRING, AGAIN, THESE NEW IDEAS AND BEST PRACTICES TO CITY DEPARTMENTS SO THAT THEY CAN STEP UP THEIR GAME AND SERVE YOU.
IT'S ALSO OUR JOB TO INCREASE TRANSPARENCY.
WE TALKED ABOUT THAT A LITTLE BIT.
YOU KNOW, WE NEED TO PUT INFORMATION ABOUT THE CITY'S FINANCES AND OPERATIONS AT YOUR FINGERTIPS.
UH, 'CAUSE THE INFORMATION CAN EXIST, BUT IF YOU CAN'T FIND IT, IF IT'S NOT ACCESSIBLE TO YOU, THEN IT DOESN'T MATTER.
AND ONCE YOU FOUND IT, IF YOU CAN'T UNDERSTAND IT, THEN IT STILL DOESN'T MATTER.
AND SO WE HAVE TO TAKE THAT THROUGH ALL OF THESE DIFFERENT STEPS AND, AND OTHER CONTROLLERS HAVEN'T TAKEN THIS APPROACH BEFORE, BUT WE HAVE TO BREAK THIS DOWN.
AND WE'RE GONNA TRY TO DO THIS WITH THE BUDGET FOR YOU THIS EVENING.
AND AGAIN, WE HOPE TO ANSWER YOUR QUESTIONS, UH, BEFORE YOU ASK THEM.
AND THEN IF, IF WE HAVEN'T, THEN OF COURSE WE'RE GONNA TAKE QUESTIONS AT THE END.
AND THEN CHARTING A PATH TO FISCAL SUSTAINABILITY.
UH, ONE OF THE THINGS, AND I'LL, I'LL JUMP TO, UH, PART OF THE CONCLUSION HERE THAT YOU'LL SEE IN THIS PROPOSED BUDGET IS THAT ON, ON A RECURRING BASIS, WHEN WE TALK ABOUT THE MONEY THAT'S COMING IN FROM PROPERTY TAX REVENUES, FROM SALES TAX REVENUES AND SO ON, AND THE MONEY THAT WE'RE SPENDING ON CRITICAL SERVICES LIKE PUBLIC SAFETY, BUT ALSO ON PARKS AND LIBRARIES AND SO ON, WE ARE SPENDING ABOUT $200 MILLION MORE THAN IS COMING IN, RIGHT? AND, UH, FOR ANY OF YOU WHO HAVE SOUGHT TO SIT AROUND YOUR, YOUR, YOUR KITCHEN TABLE AND BALANCE YOUR CHECKBOOK, UH, YOU KNOW THAT EVEN IF YOU KNOW YOU GOT A NICE CHRISTMAS GIFT AND YOU GOT A LITTLE EXTRA MONEY IN YOUR POCKET, YOU CAN'T CONTINUALLY SPEND MORE THAN IT'S COMING IN.
YOU EITHER GONNA HAVE TO GET A SECOND JOB, GO ASK FOR A RAISE, OR YOU'RE GONNA HAVE TO TIGHTEN YOUR BET A LITTLE BIT AND FIGURE OUT, YOU KNOW, WHICH OF THESE EXPENSES, UM, YOU CAN DO WITHOUT.
AND, AND OUR CITY'S GONNA HAVE TO MAKE THESE CHOICES AS WELL.
AND SO PART OF WHAT OUR OFFICE, UH, IS HERE TO DO IS TO CHART THAT PATH THAT THIS WAS SUSTAINABILITY, TO CLOSE THAT GAP, TO IDENTIFY OPPORTUNITIES FOR THE CITY TO INCREASE REVENUES, UH, OR TO IDENTIFY OPPORTUNITIES TO DECREASE COSTS WITHOUT SACRIFICING THE LEVEL OF SERVICES, UH, THAT YOU DESERVE.
SO WHAT'S IN THIS BUDGET? I GUESS IT'S GONNA REMAIN A MYSTERY
ALL RIGHT, SO LET ME, HERE'S A LITTLE BIT OF A BREAKDOWN.
UM, THE OVERALL BUDGET THAT'S BEING PROPOSED RIGHT NOW IS $6.7 BILLION, BUT THAT'S BROKEN INTO TWO BIG PIECES.
AND AGAIN, I'M, LET ME FORESHADOW FOR THE ENTIRE EVENING, WE'RE GONNA DO OUR BEST TO, TO OVERSIMPLIFY TO HELP MAKE THIS MAKE SENSE, RIGHT? SO THERE'S DETAIL WITHIN THIS, UM, THAT I'M HAPPY TO GO TO THE NTH DEGREE WITH YOU ON.
BUT THE POINT OF THIS IS TO MAKE SURE THAT EVERYBODY CAN UNDERSTAND.
THERE'S THE GENERAL FUND, AND THEN THERE'S EVERYTHING ELSE.
AND THE WAY IT'S DIVIDED, LIKE THIS IS THE GENERAL FUND IS WHAT YOU ARE PAYING FOR OUT OF POCKET, YOUR PROPERTY TAX PAYMENTS THAT COME TO THE CITY OF HOUSTON.
THAT MONEY GOES INTO THE GENERAL FUND.
AND WHEN YOU, WHEN YOU STOP BY THE, NOT, WHEN YOU STOP BY THE, THE CORNER STORE AND BUY A SNACK OR WHATEVER, AND THERE'S SOME SALES TAX, OR WHEN YOU'RE DOWN AT THE GALLERIA, UH, WHERE EVERYBODY IS WELCOME AND YOU SPEND A LITTLE BIT OF MONEY AND THERE'S SOME SALES TAX THAT, UH, THAT MONEY FLOWS INTO THE GENERAL FUND, THE ENTERPRISE AND OTHER FUNDS, UH, ARE ARE FUNDED MORE INDIRECTLY.
SO TAKE OUR AIRPORT, FOR EXAMPLE.
UH, WHEN YOU BOOK A FLIGHT OUT OF BUSH OR HOBBY, YOU'RE GONNA SEE A LITTLE, UH, LANDING SURCHARGE ATTACHED TO THAT TICKET.
[00:15:01]
AND FEES, YOU KNOW, FLOW IN AND ULTIMATELY FUND AIRPORT OPERATIONS.AND WHEN YOU SEE THESE MAJOR EXPANSIONS THAT WE'RE DOING OVER AT TERMINAL B AT BUSH, AND ALSO SOME THINGS THAT YOU'LL SEE SOON AT HOBBY, THOSE ARE, YOU KNOW, ESSENTIALLY SELF-FUNDING.
THAT MONEY ISN'T COMING DIRECTLY OUT OF YOUR POCKET AS A TAXPAYER, BUT IT IS BEING FUNDED IN THESE OTHER WAYS.
AND SO A LOT OF WHAT WE'RE GONNA TALK ABOUT TONIGHT IS THE GENERAL FUND, BECAUSE THAT'S WHAT YOU ARE SPENDING YOUR MONEY ON, AND YOUR GENERAL FUND PAYS FOR OUR POLICE, OUR FIREFIGHTERS, PARKS, PICKING UP YOUR TRASH, YOU KNOW, LIBRARIES AND A NUMBER OF OTHER THINGS.
WHEREAS YOUR ENTERPRISE FUND, WHEN YOU THINK ABOUT YOUR WATER, WHEN YOU THINK ABOUT YOUR ROADS, UH, WHEN YOU THINK ABOUT DRAINAGE THAT'S COMING FROM THESE ENTERPRISE AND OTHER FUNDS.
DOES THAT MAKE SENSE? ALRIGHT.
AND THAT GENERAL FUND PROPOSED TODAY HAS FOR THE FIRST TIME EXCEEDED $3 BILLION.
AND THAT'S, THAT'S A BIG NUMBER, BUT THIS IS A BIG CITY NEXT PAGE.
SO I'LL, I'LL SPEND A QUICK MOMENT ON ENTERPRISE FUND, AND THEN FOR THE REST OF THE EVENING, FOR THE MOST PART, WE'LL BE TALKING ABOUT THE GENERAL FUND.
SO, SO WHAT ALL IS IN THAT $3.7 BILLION, WHERE OVER OVER 2 BILLION OF IT IS WATER AND SEWER.
AND, UM, YOU ALL HAVE SEEN AND, AND HEARD ON THE NEWS OVER THE PAST YEAR, UM, ALL THESE ISSUES WITH FOLKS GETTING HIGH WATER BILLS AND THAT KIND OF THING THAT'S RELATED TO YOUR DRINKING WATER.
SO THAT'S WHEN YOU FLUSH THAT TOILET OR WHEN IT GOES DOWN THE SINK AND YOU WANT THAT WATER TO GO OUTTA YOUR HOUSE AND, UM, AND TO SOMEWHERE SAFE AND TO BE TREATED AND SO ON.
FOR YEARS AND YEARS AND YEARS, WE HAVE UNDERFUNDED OUR WASTEWATER OPERATIONS.
AND IN FACT, IT TOOK THE UNITED STATES DEPARTMENT OF JUSTICE COMING IN TO SAY, HEY, Y'ALL HAVE A PROBLEM, AND IMPOSING UPON US, UH, AN AGREEMENT WHERE WE'RE GOING TO INVEST BILLIONS OF DOLLARS TO GET THE SYSTEM FUNCTIONAL AGAIN.
SO WE ARE IN THE MIDST OF THAT, AND THAT'S PART OF WHY YOU SEE SUCH A HIGH PRICE TAG, UH, ON WATER AND SEWER.
UH, OUR AIRPORT SYSTEM IS, IS SET TO SPEND ABOUT $700 MILLION, UH, THIS YEAR.
UH, ROAD REPAIRS, WHICH ALSO HAVE SOME DRAINAGE ATTACHED TO IT, $400 MILLION.
AND OUR CONVENTION CENTER, WHICH IS, THIS IS LARGELY AROUND DEBT PAYMENTS FOR, FOR GEORGIA R BROWN, ET CETERA, IS JUST UPWARDS OF A HUNDRED MILLION DOLLARS.
SO LET'S COME BACK TO THIS GENERAL FUND.
AND, AND WE TALKED ABOUT THAT $3 BILLION GENERAL FUND BUDGET.
WELL, WE GOT REVENUES COMING IN OF 2.8 BILLION.
SO I ALREADY, I'VE, I'VE ALREADY FORESHADOWED FOR YOU, THERE'S A $200 MILLION HOLE HILL HERE, BUT 2.8 BILLION, HALF OF THAT IS PROPERTY TAX.
SO YOU GET YOUR BILL FROM HA AND LET ME BE VERY CLEAR THAT BILL YOU GET FROM HCAD, ALL THAT MONEY DOESN'T COME TO THE CITY OF HOUSTON.
MOST OF IT GOES TO YOUR SCHOOL DISTRICT.
A LOT OF IT GOES TO THE COUNTY.
AND YOU CAN SEE IT'S BROKEN DOWN LIKE PENNY BY PENNY, WHERE THAT MONEY IS GOING.
UM, AND WE'LL TALK ABOUT HOW MUCH OF THAT FLOWS TO THE CITY IN A BIT IN A MINUTE.
BUT HALF OF THIS BUDGET, $1.4 BILLION IS PROPERTY TAX.
UH, ANOTHER 30% OR SO IS SALES TAX.
AND WE'RE LOOKING AT ROUGHLY $900 MILLION, UH, COMING IN NEXT YEAR.
WE'RE PROJECTING, I BELIEVE, A LITTLE BIT LOWER, AND THE MAYOR'S FINANCE TEAM IS PROJECTING A LITTLE BIT HIGHER.
IT'S OUR JOB TO BE INDEPENDENT.
AND SO WE HAVE OUR OWN OUTLOOK ON THAT, AND WE'RE ALWAYS GONNA BE A LITTLE BIT MORE CONSERVATIVE BECAUSE AT THE END OF THE DAY, WE WANNA MAKE SURE THAT WE HAVE MONEY IN THE BANK TO PAY THE CITY'S BILLS.
AND SO I THINK WE'RE PROJECTING IN THE HIGH EIGHT HUNDREDS IN OUR CONSERVATIVE SCENARIO.
AND THEN THERE'S ANOTHER HALF A BILLION, WHICH IS A WHOLE LOT OF MONEY, BUT PERCENTAGE WISE ON THIS PIE, IT'S A LITTLE BIT SMALLER.
THAT'S FRANCHISE FEES, LICENSES AND PERMITS.
YOU KNOW, WHEN YOU GO OUT AND HAVE, UM, YOU KNOW, A DRINK AT, AT, AT, UH, A LOUNGE NEARBY, THERE'S SOME SALES TAXES, YOU KNOW, ASSOCIATED WITH THAT BEVERAGE OR A LICENSING FEE, AND THOSE COME TO THE CITY AS WELL.
AND THAT GETS US TO $2.8 BILLION.
SO NOW WE'RE BACK AT THE GENERAL FUND, AND MOST PEOPLE HAVE NO IDEA, YOU KNOW, HOW THIS IS ALL SPENT AND WHERE IT ALL GOES.
AND SO WE'RE TRYING TO HELP YOU UNDERSTAND THAT HERE, UH, OF THAT 3 BILLION, OVER A BILLION ALONE GOES TO POLICE.
AND THE NEXT BIGGEST BUCKET, UH, IS FIRE.
NOW, THIS, UH, THIS FIRE NUMBER, 636 MILLION, THAT INCLUDES, UM, ASSUMPTIONS AROUND THE PROPOSED SETTLEMENT WITH FIREFIGHTERS AS BEING CONSIDERED
[00:20:01]
RIGHT NOW.AND ALL THIS IS FLOWING TO CITY COUNCIL HERE, UH, IN THE COMING WEEKS.
THE NEXT BIG CHUNK IS DEBT SERVICE.
SO THIS IS PAYING FOR STUFF THAT WE'VE, YOU KNOW, WE'VE ALREADY DONE INVESTMENTS THAT WE'VE ALREADY MADE ACROSS THE CITY, AND THEN THE NEXT FOUR MOST SIGNIFICANT, UH, ARE FOR IS FOR SOLID WASTE, WHICH IS OUR GETTING YOUR TRASH PICKED UP.
THAT'S A, ANOTHER A HUNDRED MILLION DOLLARS PARKS, $89 MILLION.
UM, TEAM, WHAT WE GOT ON THE ORANGE LINE HERE, Y'ALL, Y'ALL CUT SOMETHING OFF HERE.
PUBLIC HEALTH, THAT'S OUR, OUR, OUR, OUR HOUSTON HEALTH DEPARTMENT, $54 MILLION LIBRARIES, 52, AND THEN ANOTHER 500 PLUS ACROSS 17 DIFFERENT DEPARTMENTS, ALL OF WHICH ARE SMALLER, YOU KNOW, THAN, THAN OUR LIBRARY SYSTEM.
SO WHAT YOU CAN SEE HERE IS MORE THAN HALF OF THE GENERAL FUND BUDGET IS GOING TO PUBLIC SAFETY, POLICE AND FIRE.
UM, ANOTHER, UM, 16, 17% IS GOING TO DEBT SERVICE AND THEN SIGNIFICANTLY SMALLER AMOUNTS GOING TO THESE OTHER SERVICES.
AND SO, UM, LOOK, LET ME BE CLEAR, WE SHOULD ALL EXPECT OUR TRASH TO GET PICKED UP ON TIME, BUT WHEN YOU LOOK AT THIS, IT'S NOT SHOCKING WHEN YOU SAY, OH, IT'S NOT THAT MUCH OF MY MONEY IS GOING TOWARDS MAKING SURE WE HAVE A WELL-RESOURCED SOLID WASTE DEPARTMENT.
AND SO LET'S BE MORE SPECIFIC ABOUT WHAT YOU'RE ACTUALLY PAYING.
SO THIS SLIDE TAKES THOSE, THOSE SAME EXACT SPENDING AMOUNTS, AND IT MOVES IT FROM, YOU KNOW, A BILLION DOLLARS TO WHAT IS THE AVERAGE HOUSTONIAN SPECIFICALLY PAYING.
AND SO WE TOOK THE TAX BILL OF SOMEONE WHOSE HOME IS $300,000.
IF YOU LOOK AT THE AVERAGE MARKET PRICE PER HOMES RIGHT THIS MOMENT, IT'S ABOUT $340,000.
WE, WE LOOKED BACK TO, TO LAST YEAR.
AND, UM, AND SO WE USED A $300,000 FIGURE.
AND TO MAKE THINGS A LITTLE BIT MORE SIMPLE, AND WE ASSUME THAT YOU'RE USING YOUR HOMESTEAD EXEMPTION, SO YOU'RE GETTING A A 20% DISCOUNT.
NOW, THE TAX RATE THAT THE CITY BRINGS IN ON A $300,000 HOME, UH, IS ABOUT A LITTLE BIT OVER $1,200.
AND THAT'S A TAX RATE OF 51.90 CENTS PER $100 OF TAXABLE VALUE.
SO IF YOU LIVE IN THE AVERAGE HOME ACROSS HOUSTON, THIS IS WHAT YOUR TAX BILL LOOKS LIKE.
1200 BUCKS, A LITTLE BIT OVER 1200 BUCKS GOING TO THE CITY.
NOW MORE IS GOING TO HISD MORE IS GOING TO THE COUNTY.
UH, BUT THIS IS WHAT COMES TO THE CITY, AND YOU'RE PART OF THE POLICE BUDGET IS A LITTLE BIT SOUTH OF 400 BUCKS.
UM, YOU'RE PART OF DEBT SERVICE IS A LITTLE BIT NORTH OF $300 FIRE, $236 SOLID WASTE TRASH PICKUP, $37 PARKS, $33, PUBLIC HEALTH, 20 BUCKS, AND LIBRARIES $19.
AND THEN ABOUT 200 OF YOUR DOLLARS GO TO THESE 17 OTHER, UH, DEPARTMENTS.
SO NOW THINKING JUST A LITTLE BIT ABOUT HELPING YOU TO UNDERSTAND WHAT CHANGED FROM LAST YEAR'S BUDGET TO THE PROPOSED BUDGET WE'RE LOOKING AT RIGHT NOW, UM, THE OVERALL BUDGET FOR GENERAL FUND WENT UP ABOUT $75 MILLION, WHICH IS, WHICH IS ONLY 2%.
BUT AGAIN, WHEN YOU'RE TALKING ABOUT THESE BIG NUMBERS, $3 BILLION, UM, A SMALL PERCENTAGE RAISE IS STILL A LOT OF MONEY.
AND SO WHERE DO THESE INCREASES COME FROM? MOST OF IT IS SPECIFICALLY TIED TO, UH, THE PROPOSED SETTLEMENT WITH FIREFIGHTERS.
AND, AND LET ME BE CLEAR HERE, FOR MANY YEARS FROM FROM 2017 TO 2024, UH, OUR FIREFIGHTERS HAVE BEEN OPERATING WITHOUT A CONTRACT.
AND, UM, WHAT THE AVERAGE LABOR UNION WOULD DO IF THEY DON'T REACH A CONTRACT IS THEY GO ON STRIKE.
YOU MIGHT HAVE SEEN THIS ON TV A HUNDRED DIFFERENT TIMES, BUT OUR PUBLIC SAFETY, UH, OFFICERS, POLICE AND FIREFIGHTERS, THEY'RE FORBIDDEN FROM GOING ON STRIKE.
THEY HAVE TO KEEP SHOWING UP TO WORK EVEN WHEN THEY DON'T HAVE A CONTRACT.
BUT THERE, UM, BUT THERE IS ALSO REMEDY IN THE LAW THAT ALLOWS THEM TO SEEK BACK PAY ONCE A RESOLUTION IS REACHED, OR IF YOU GO ALL THE WAY, UH, TO COURT AND HAVE A JURY OR A JUDGE FIGURE IT OUT FOR YOU.
AND SO, UH, WHAT'S BEING PROPOSED RIGHT NOW IS A SETTLEMENT FOR BACK PAY THAT IS IN THE AMOUNT OF $650 MILLION
[00:25:03]
THAT, UH, THAT AMOUNT IS PROPOSED FOR SEVEN YEARS OF, OF NOT HAVING A CONTRACT.AND EVEN THOUGH OUR FIREFIGHTERS HAVE GOTTEN RAISES FOR THE PAST THREE YEARS, UH, THEY STILL, ON AVERAGE ARE GETTING PAID SIGNIFICANTLY LESS, ABOUT 10%, UM, LESS THAN THE AVERAGE OF THEIR PEERS IN OTHER MAJOR CITIES IN TEXAS EVEN TODAY.
SO, UH, THIS SETTLEMENT, $650 MILLION FOR BACK PAY, 10% RAISES STARTING IN THIS COMING FISCAL YEAR, AND THEN MORE RAISES IN THE FUTURE.
UH, WHAT THIS WILL COST US IN YEAR ONE, UH, IS 77, UH, MILLION DOLLARS, WHICH BY ITSELF ACCOUNTS FOR THE ENTIRE INCREASE IN THE BUDGET.
UH, THE POLICE ARE ALSO GETTING AN INCREASE.
NOW, THEY'VE, THEY'VE BEEN UNDER CONTRACT FOR A NUMBER OF YEARS, AND THEIR RAISE FOR THE COMING YEAR IS THREE AND A HALF PERCENT.
AND SO THAT'S GONNA BE $29 MILLION.
AND THEN THERE'S ALSO 10, $10 MILLION IN THIS BUDGET SIMPLY FOR A CONTINGENCY.
AND LOOK, WE'VE SEEN JUST IN THESE PAST FEW WEEKS WITH THESE STORMS, YOU KNOW, WHY THE CITY MIGHT NEED SOME MONEY FOR CONTINGENCY.
YOU KNOW, WHEN AN EMERGENCY COMES UP, UH, YOU WANT TO HAVE A SAFETY NET.
THERE'S ALSO BEEN SOME REDUCTIONS, A $24 MILLION REDUCTION IN GENERAL GOVERNMENT.
UH, WHAT THIS WAS IS THAT THERE WAS A ONE-TIME BOOST IN THE LAST FISCAL YEAR TO PAY FOR LOCAL DRAINAGE PROJECTS.
AND, UH, AND THAT'S GOING AWAY.
SO WE'VE A $24 MILLION, UH, $24 MILLION COMING OFF OF THE BUDGET.
AND THEN ALSO OUR DEPARTMENTS, UH, SIGNIFICANTLY, MOST, MOST SIGNIFICANTLY PARKS, HEALTH LIBRARY AND COURTS ARE SEEING $12 MILLION IN REDUCTIONS.
I WILL NOTE THAT THE MAJORITY OF THOSE REDUCTIONS ARE IN LONG EXISTING VACANCIES.
AND SO IT'S CUTTING A, IT'S CUTTING OUT, YOU KNOW, NO ONE'S LOSING THEIR JOB, BUT THERE WAS A JOB THAT WAS AVAILABLE THAT'S, THAT'S NO LONGER GONNA BE THERE.
SO, LOOKING AT, UH, THIS BUDGET AND TRYING JUST TO UNDERSTAND, UM, HOW IT'S BROKEN OUT, AND WE'LL JUST, I'LL JUST FOCUS YOU ON THE FISCAL YEAR 2025 BUDGET ON THE, ON THE FAR SIDE THERE, 60 PLUS PERCENT OF OUR BUDGET IS ON PEOPLE.
THE OTHER 40%, UM, IS ON NON-PERSONNEL.
SO THAT'S ON, YOU KNOW, PRODUCTS THAT WE'RE PURCHASING, WHETHER IT'S IT, WHETHER IT'S, UH, YOU KNOW, WHETHER IT'S SUPPLIES FOR INFRASTRUCTURE PROJECTS, WHETHER IT'S POLICE CARS, FIRE ENGINES, YOU KNOW, YOU NAME IT, THAT'S IN THAT 40%, BUT, BUT OVER 60% IS, IS PAYING FOR THE 21 PLUS THOUSAND EMPLOYEES THAT THE CITY OF HOUSTON HAS.
AND OF THOSE PEOPLE COSTS, UH, IN OUR GENERAL FUND BUDGET, MORE THAN 80% OR NEARLY 80%, UH, ABOUT CLOSER TO 75% IS WHAT YOU CALL CLASSIFIED EMPLOYEES.
THESE ARE OUR UNIFORMED OFFICERS, POLICE AND FIREFIGHTERS.
THE OTHER 24%, UH, ARE CIVILIAN FOLKS WHO WORK IN A CONTROLLER'S OFFICE, UH, FOLKS WHO WORK IN LEGAL AND IN SO MANY OTHER IMPORTANT CITY DEPARTMENTS LIKE PARKS AND HEALTH AND SO ON.
AND SO, I'VE, I'VE, I, I DIDN'T BURY THE LEAD HERE, I FAST FORWARDED TO THIS CONCLUSION, BUT, UM, WE HAVE A BIT OF AN ISSUE.
AND, AND THAT ISSUE IS WHEN WE'RE LOOKING AT OUR GENERAL FUND, WE'RE BRINGING IN 2.8 BILLION, BUT WE'RE SPENDING OVER 3 BILLION.
AND THAT LEAVES US WITH ALMOST $200 MILLION, UH, IN DEFICIT SPENDING.
NOW, UH, GOING BACK TO THE COVID-19 CRISIS, UM, THERE WERE LAWS PASSED AT THE FEDERAL LEVEL, SPECIFICALLY THE AMERICAN RESCUE PLAN PASSED BY JOE BIDEN THAT SENT BILLIONS OF DOLLARS ACROSS THE COUNTRY TO, TO SAVE OUR STATES AND LOCAL GOVERNMENT.
UH, HOUSTON WAS A BENEFICIARY OF THAT.
AND BECAUSE OF THOSE ONE TIME ARPA FUNDS, UH, WE CURRENTLY HAVE A RECORD OR NEAR RECORD HIGH, UH, FUND BALANCE.
YOUR FUND BALANCE IS LIKE THE CITY'S SAVINGS ACCOUNT.
AND RIGHT NOW, WE'RE PROJECTING TO HAVE WELL OVER $400 MILLION, UH, IN THAT ACCOUNT, IN THAT FUND BALANCE AT THE END OF THIS FISCAL YEAR, WHICH HAS COME INTO A CLOSE IN JUST A FEW WEEKS.
HOWEVER, WE'RE GONNA SPEND A BIG CHUNK OF THAT, AND THAT DEFICIT,
[00:30:01]
THAT NEARLY $200 MILLION FIGURE IS IF WE DON'T DO ANYTHING ABOUT IT, IT'S GONNA GET BIGGER AND BIGGER AND BIGGER, UH, IN YEARS TO COME.AND SO WE SIMPLY CANNOT AFFORD TO CONTINUE DOWN THIS PATH.
WE CAN DO IT ONCE, LIKE I SAID, WE GOT THAT CHRISTMAS PRESENT FROM JOE BIDEN, AND WE'RE ABLE TO SPEND A LITTLE BIT MORE THAN WE'RE COMING IN THAN, THAN IT'S COMING IN THIS ONE TIME.
BUT WE CAN'T AFFORD TO DO THIS TWICE.
IF, IF THIS BUDGET WENT INTO THE NEXT FISCAL YEAR, WE WOULD RUN BELOW THE CITY'S SAFETY THRESHOLDS ON HOW MUCH MONEY WE NEED TO KEEP IN RESERVE TO MAKE SURE THAT OUR BILLS ARE GETTING PAID.
AND SO WE ARE, YOU KNOW, WE'RE AT A POINT WHERE TIME IS TRULY RUNNING OUT AND WHERE WE HAVE TO MAKE, UH, SOME SERIOUS DECISIONS ABOUT IF WE'RE GOING TO INCREASE REVENUES, IF WE'RE GONNA DECREASE COSTS, OR SOME COMBINATION OF BOTH.
AND SO I'VE TALKED A LITTLE BIT ABOUT THIS, BUT WHAT I JUST SHARED WITH YOU, YOU KNOW, THERE WAS NO OPINION IN THAT.
THAT'S WHAT'S IN YOUR PROPOSED BUDGET FOR FISCAL YEAR 2025.
AND OF COURSE, IN A MOMENT, I'M HAPPY TO TAKE A COUPLE OF QUESTIONS.
UM, BUT NOW I'M GOING TO SHARE WITH YOU MY PERSPECTIVE.
AND I'VE ALREADY STARTED, YOU KNOW, FIRST THINGS FIRST, WE HAVE TO BE RESPONSIBLE WITH THIS CITY'S FINANCES.
UH, AGAIN, JUST LIKE IF YOU WERE BALANCING YOUR OWN BUDGET AT HOME, OR IF ONE OF YOUR KIDS HAS GONE OFF TO COLLEGE OR KEEPS CALLING HOME, UH, FOR MONEY, YOU GONNA SAY, HEY, YOU GOTTA FIGURE THIS THING OUT, RIGHT? AND THAT'S WHERE THE CITY IS WHERE WE HAVE TO FIGURE THIS THING OUT.
AND SO, YOU KNOW, WHERE WE ARE, AND YOU'VE HEARD ME SAY THIS OVER AND OVER AND OVER.
IF YOU'VE BEEN LISTENING TO ME FROM THE CAMPAIGN TO THE TIME I'VE BEEN IN THIS OFFICE, AND I'VE SAID IT QUITE A BIT TONIGHT, UM, YOU ONLY GOT TWO OPTIONS.
UM, YOU CAN INCREASE REVENUE OR YOU CAN DECREASE COST OR SOME COMBINATION OF BOTH.
UH, THIS BUDGET GOES IN THE OPPOSITE DIRECTION.
IT INCREASES OUR COST AND IT DECREASES OUR REVENUE.
AND SO, LOOK, WE'RE BLESSED WITH THAT FUND BALANCE, BUT WE HAVE TO FIGURE THIS THING OUT.
UM, WE HAVE TO COME TO SOME SETTLEMENT WITH OUR FIREFIGHTERS.
IT'S GONNA BE UP TO THE MEMBERS OF CITY COUNCIL TO, UH, DETERMINE IF THEY AGREE WITH THE CURRENT VERSION OF THE PROPOSED SETTLEMENT, AND WE'LL SEE HOW THAT GOES IN THE NEXT COUPLE OF WEEKS.
BUT EITHER WAY, THAT'S A REAL COST.
UH, THERE ALSO ARE GONNA BE COSTS ASSOCIATED WITH RAISES FOR ALL CITY EMPLOYEES.
SO RIGHT NOW, UH, OUR HOPE UNION, WHICH IS OUR, AGAIN, OUR, OUR CIVILIAN, UH, STAFF AT THE CITY, THEY'RE IN NEGOTIATIONS FOR, FOR THEIR RAISES FOR THE NEXT FEW YEARS.
AND WE HAVE YET TO SEE, UH, WHAT THEY'RE GOING TO AGREE TO, BUT WE KNOW IT'S GONNA BE HIGHER THAN WHAT THEY GET PAID NOW.
AND SO THAT'S GONNA BE ANOTHER, UH, ADDED COST THAT REVENUE FROM ARPA IS GOING AWAY.
AND IN OUR CURRENT PROPOSED BUDGET THERE, THERE IS NO NEW REVENUE SOURCE.
SO, UM, WE ARE NOT TAKING THE STEPS IN THE RIGHT DIRECTION AS OF YET.
UH, BUT WE ARE GONNA HAVE NO CHOICE BUT TO DO THAT IF WHEN WE GET TO NEXT YEAR.
UH, WE ALSO HAVE AGING CITY INFRASTRUCTURE.
I MENTIONED THE CONSENT DECREE WITH THE DEPARTMENT OF JUSTICE ALREADY.
UH, BUT TIME AND TIME AGAIN, WE'VE KICKED THE CAN DOWN THE ROAD, RIGHT? THIS IS A GROWING CITY.
THIS IS A CITY THAT, YOU KNOW, FOR DECADES UPON DECADES, UH, WE'VE BEEN BUILDING AND BUILDING AND REALLY BURSTING AT THE SEAM BECAUSE HE WAS A GREAT PLACE TO LIVE, WORK, AND RAISE A FAMILY.
AND SO MANY MORE PEOPLE HAVE BEEN COMING.
BUT AS THOSE COSTS HAVE GONE UP, UH, AGAIN, WE HAVE NOT MADE THE RESPONSIBLE DECISION TO GROW REVENUES ACCORDINGLY.
AND A LOT OF IMPORTANT, UH, MAINTENANCE DECISIONS AROUND, YOU KNOW, OUR INFRASTRUCTURE HAVE BEEN DELAYED AND DELAYED AND DELAYED BEYOND THE USEFUL LIFE OF, OF THIS INFRASTRUCTURE.
AND IT'S STARTING TO SHOW WHEN YOU SEEING BURSTED PIPES AND WHERE YOU'RE SEEING, AGAIN, THESE ROADS WHERE YOU'RE JUST LIKE, WHY DOES THIS LOOK LIKE THIS? UM, AND WHY DO MY RIMS LOOK LIKE THIS AFTER I DRIVE DOWN THIS STREET?
AND, UM, AS WE BRING IN MORE PEOPLE, UH, WE NEED, YOU KNOW, MORE ROADS, WE WOULD, WE DEFINITELY NEED BETTER AND EXPANDED PUBLIC TRANSIT OPTIONS.
UH, THERE ARE SO MANY NEEDS THAT COME WITH THAT.
[00:35:01]
UM, MORE PIPES TAKING WATER TO DIFFERENT HOUSEHOLDS AND DIFFERENT NEIGHBORHOODS AND TAKING IT BACK OUT.UM, AND SO, AND THEN AS HOMES ARE, ARE BUILDING UP, WE NEED MORE RETENTION AND DETENTION OF THESE, UH, OF WATER.
SO IT'S NOT FLOODING YOUR NEIGHBOR'S HOME.
UM, AND WE'VE ALL DEALT WITH THAT IN, IN ONE WAY OR THE OTHER.
BUT, BUT FAR TOO OFTEN WE, WE'VE BEEN BEHIND THE EIGHT BALL AND MAKING THOSE DECISIONS, AND SO WE HAVE A LOT OF OF WORK THAT WE NEED TO DO, AND THAT MEANS, UH, THAT A LOT OF COSTS COMING IN THE FUTURE AND SAYING, NO, DON'T GO TOO FAR.
WE HAVE TO DO ALL THIS WHILE CONTINUING TO INCREASE THE QUALITY OF SERVICES THAT WE'RE RECEIVING AT THE CITY, RIGHT? WE, MANY OF US WOULD ARGUE THAT THE SERVICES THAT WE'RE BEING PROVIDED RIGHT NOW CAN IMPROVE IN QUALITY.
WE, WE DEFINITELY CAN'T AFFORD FOR, FOR THE QUALITY TO GO DOWN, BUT WE WOULD LIKE, AND WE'RE COMMITTED TO, TO IMPROVING THE QUALITY OF THESE SERVICES.
SO WE HAVE TO DO, WE'RE AT A POINT WHERE, ON THE BUDGET SIDE, ON THE COST SIDE, WE WISH WE COULD DO SOME VERSION OF LESS, BUT WE KNOW THAT WE NEED TO BE DOING MORE.
AND SO WE HAVE TO UNDERSTAND THAT.
AND IT'S UP TO YOUR CITY GOVERNMENT TO EXPLAIN THIS TO YOU AGAIN, IN A WAY THAT YOU UNDERSTAND, TO LAY OUT WHAT'S NECESSARY TO MAKE THIS A GREAT CITY THAT WE CAN CONTINUE TO RAISE OUR FAMILIES IN AND KNOW THAT FIVE YEARS FROM NOW, 10 YEARS FROM NOW, UM, WE'LL BE IN A BETTER PLACE THAN WE ARE TODAY.
AND THEN TO BE CLEAR WITH YOU ABOUT THE PRICE TAG ASSOCIATED WITH THAT, AND SHARE A PLAN WITH YOU, UH, FOR HOW WE'RE GONNA PAY THAT BILL.
THAT'S WHAT WE OWE YOU, THAT'S WHAT YOU PUT US IN OFFICE TO DO.
UH, AND CERTAINLY AS, AS YOUR CONTROLLER, AS YOUR CHIEF FINANCIAL OFFICER, AS YOUR TAXPAYER WATCHDOG, THAT'S WHAT WE ARE GONNA BE DOING, UH, FOR YEARS TO COME.
SO OUR NEXT SLIDE IS REAL, REAL SIMPLE.
WE GOTTA GENERATE NEW REVENUE, WE GOTTA REDUCE COSTS.
UM, WE CAN'T KEEP DOING THESE ONE-TIME SOLUTIONS LIKE SELLING LAND, SELLING ASSETS.
AGAIN, AT SOME POINT YOU SIMPLY RUN OUT OF THOSE OPTIONS.
UM, AND AGAIN, WITH OUR CITY THAT CONTINUES TO BE GROWING, WE WANNA HOLD ON TO SOME OF THESE, UH, VALUABLE ASSETS.
ONE THING THAT, UM, Y'ALL MAY NOT BE AWARE OF, WE, UH, THERE'S AN ASPIRATION TO TOTALLY REVAMP AND GROW, UH, THE GEORGE R. BROWN CONVENTION CENTER, AND I'VE SEEN THE PLANS FOR THAT, AND THEY'RE GORGEOUS.
UM, AND THERE'S, THERE'S ALSO AN ASPIRATION TO PUT AN ENTERTAINMENT CENTER, UM, RIGHT NEAR THERE WHERE WE CAN, AGAIN, HAVE A GREAT TIME, WHETHER IT'S FOR SPORTING EVENTS, WHETHER IT'S FOR CONVENTIONS, OR WHETHER WE'RE JUST TRYING TO HAVE A A A GREAT WEEKEND.
IF YOU LOOK AT ALL THESE LOTS DOWNTOWN, UH, THEY'RE OWNED BY THE GOVERNMENT OF TAIWAN
AND, AND LOOK, WE LIVE IN A, WE LIVE IN A FREE COUNTRY WHERE YOU CAN BUY AND SELL THESE ASSETS.
BUT THE REASON I'M SHARING THAT, THAT, THAT, UM, THAT ANECDOTE IS AS WE THINK ABOUT THE GROWTH OF THE CITY IN THE FUTURE, YOU KNOW, WE DON'T WANNA BE LOOKING AT SOME BUILDING WHERE WE SAY, MAN, THIS WOULD MAKE A GREAT COMMUNITY CENTER, AND THE CITY USED TO OWN THIS LAND, BUT WE SOLD IT TO BALANCE THE BUDGET BACK IN 2025, RIGHT? AND SO, UH, WE CAN'T KEEP MOVING FORWARD WITH THESE BAND-AID SOLUTIONS, IS, IS THE POINT OF WHAT I'M SHARING HERE.
AND AS I MENTIONED, UH, WE ALSO CAN'T RELY ON NON-RECURRING REVENUE.
UM, THE PANDEMIC WAS AWFUL FOR THIS COMMUNITY IN SO MANY DIFFERENT WAYS.
UM, ON THE DOLLAR SIDE, YOU KNOW, WE, WE RECEIVED AN INFLUX OF FEDERAL FUNDS.
AND SO FOR OUR BUDGET, IT WAS, IT WAS REALLY A SAVIOR, BUT IT ALSO ALLOWED US TO, UM, IN SOME WAYS, DELAY THE INEVITABLE.
AND NOW, YOU KNOW, THOSE CHICKENS ARE COMING HOME TO ROOST, AND WE HAVE TO MAKE SOME IMPORTANT AND RESPONSIBLE DECISIONS GOING FORWARD.
SO WHAT ARE WE GONNA DO? WHAT'S YOUR CONTROLLER'S OFFICE GONNA DO? AS I MENTIONED, WE'RE GOING TO CONTINUE TO SHARE THESE MESSAGES, UH, WITH YOU, AND WE'RE GOING TO MAKE SURE THAT WE'RE DOING IT IN WAYS THAT YOU UNDERSTAND.
UH, WE'RE ALSO GONNA WORK WITH OUR MAYOR AND WORK WITH YOUR ELECTED MEMBERS OF CITY COUNCIL TO IDENTIFY THESE OPPORTUNITIES, INCREASE REVENUE, DECREASE COST, WITHOUT SACRIFICING THE QUALITY OF CITY SERVICES.
UH, WE'RE ALSO GOING TO, THROUGH OUR PERFORMANCE AUDIT FUNCTION, SHARE THESE IDEAS, UH, THAT ARE GOING TO ALLOW CITY DEPARTMENTS TO BETTER SERVE YOU.
UH, AND THEN FINALLY, WE'RE GONNA INCREASE ACCOUNTABILITY.
UM, WE JUST SAW ON THE NEWS THE OTHER DAY, A FORMER CITY EMPLOYEE BEING ARRESTED FOR SELF-DEALING.
UM, LAST YEAR WE SAW IN THE NEWS MONEY THAT SHOULD HAVE GONE TO IMPORTANT HOUSING, UH, INITIATIVES THAT BECAUSE OF
[00:40:01]
NOT FRAUD, BUT BECAUSE WE WEREN'T ABLE TO COMPETENTLY DEPLOY THOSE FUNDS, WE HAD TO GIVE THEM BACK, RIGHT? AND THAT'S COSTING OUR COMMUNITY.AND SO WE NEED, UM, WE NEED A WATCHDOG.
WE NEED SOMEONE WHO'S GONNA BE PAYING ATTENTION.
AND SO ONE THING THAT WE'RE DOING RIGHT NOW IN THIS BUDGET CYCLE IS ASKING CITY COUNCIL TO GIVE US MORE AUDIT BUDGET SO THAT WE CAN PUT PEOPLE IN PLACE WHO ARE GOING TO BE THE EYES AND EARS, UH, FOR YOU BRINGING MORE ACCOUNTABILITY TO CITY GOVERNMENT AND IDENTIFYING SOME OF THESE SAVINGS OPPORTUNITIES.
AND SO THAT'S INCREDIBLY IMPORTANT, AND IT'S SOMETHING THAT WE'RE, WE'RE DEEPLY COMMITTED TO.
I THINK WE MAY HAVE ARRIVED AT THE TIME FOR ADDITIONAL QUESTIONS.
SO, ASHLEY, OR, YOU KNOW, FOR THOSE WHO ARE IN THE CROWD, WE HAVE A MICROPHONE RIGHT HERE FOR ANY QUESTIONS YOU MIGHT HAVE IF YOU'RE WATCHING ONLINE.
I THINK WE'RE TAKING QUESTIONS FROM THE CHAT, AND THEY'LL BE RELAYED TO ME, UH, IN SOME WAY.
REP, DON'T ASK NO TOUGH QUESTION.
NOW, WE, WE MADE YOU AN INVITED GUEST TO
SO ANYWAY, I WANT TO THANK YOU FOR DOING THIS BECAUSE NORMALLY WHEN I WAS A COUNCIL MEMBER, THE CONTROLLER WOULD COME AND PRESENT AND TELL US STUFF, AND WE KNEW STUFF THAT THE, THE REGULAR PEOPLE DIDN'T.
SO I'D LIKE TO COMMEND YOU ON HOW YOU SIMPLIFIED IT AND MADE A SECOND GRADER BE ABLE TO UNDERSTAND IT.
ONE OF THE THINGS THAT I WANT TO KNOW AS A FORMER HISD TRUSTEE AND CURRENT, UH, STATE REPRESENTATIVE, UH, WELCOME TO HOUSE DISTRICT 1 47.
THE EDUCATION HERE IS LITERALLY BEING DESTROYED.
I ACTUALLY HAVE FRIENDS WHO ARE REALTORS WHO SAY THAT PEOPLE DON'T WANT TO BUY IN THE CITY ANYMORE BECAUSE THEY DON'T WANNA SEND THEIR KIDS TO HISD.
DOES THE CONTROLLER'S OFFICE HAVE ANY IDEA OF THE IMPACT THAT PEOPLE TERRIFIED OF THE DESTRUCTION OF HISD, HOW THAT'S AFFECTING OUR, OUR TAXES HERE? AND THEN, AND THEN, UH, UH, ALONG WITH THAT, IF HISD DOES A BOND, WHICH LET ME BE CLEAR, I'M CAMPAIGNING AGAINST IT.
'CAUSE WE AIN'T GETTING NO BOND IN MY RESPECTFUL OPINION, UNTIL THERE'S AN ELECTED BOARD WITH A, WITH A SUPERINTENDENT WHO'S HIRED BY AN ELECTED BOARD AND WHO'S CERTIFIED TO BE A SUPERINTENDENT.
WHAT HAPPENS IF THERE'S BOND MONEY? DOES THE CITY SHARE IN ANY OF THAT? IF YOU COULD JUST ANSWER THOSE COUPLE OF QUESTIONS.
AND I, I WILL, UH, I'LL ANSWER THE LAST PART.
THE HISD BOND, ANY APPROVAL OF THAT, THAT MONEY WOULD GO TO HISD.
UM, I'LL ALSO SAY THAT WHILE I DEEPLY UNDERSTAND AND AGREE WITH YOUR POSITION ON, ON THE HISD TAKEOVER, UM, THE FACT THAT THE MATTER NOW IS THAT THIS TAKEOVER HAS HAPPENED, AND IT'S LIKELY NOT TO CHANGE UNTIL WE KICK OUT THE GOVERNOR, WHICH I'LL BE FIGHTING TO DO A COUPLE OF YEARS FROM NOW.
AND SO, YOU KNOW, IN THE INTERIM, WE WANT THESE KIDS TO BE ABLE TO GET THE BEST EDUCATION THAT THEY CAN GET.
'CAUSE THEY'RE, THEY'RE STUCK WITH WHAT THEY GOT.
THEY, YOU KNOW, US ADULTS ARE FIGHTING AND ALL OF THAT KIND OF STUFF.
UM, AND SO IT'S A FREE COUNTRY.
YOU'RE, YOU'RE, YOU'RE ENTITLED TO OPPOSE THE BOND OR BEFORE THE BOND.
UH, BUT WE KNOW THAT THESE KIDS NEED HELP.
UH, IF IT PASSES, THAT MONEY WILL NOT GO TO THE CITY.
UH, TO YOUR QUESTION AROUND, UH, PROPERTY VALUES AND THINGS OF THAT NATURE, WE HAVE NOT DONE THAT ANALYSIS, UH, JUST YET.
AGAIN, ANECDOTALLY, WE DO KNOW THAT HISD IS VIEWED AS A PROBLEM, AND THAT PEOPLE ARE, YOU KNOW, WHO CARE ABOUT THEIR KIDS' PUBLIC SCHOOL EDUCATION, UM, ARE TRYING TO LOCATE THEMSELVES, UH, IN PLACES WHERE THEY CAN GO TO SCHOOLS THAT THEY HAVE, UH, FAITH IN.
WE ALSO KNOW THAT TEACHERS ARE BEING TEACHERS AND PRINCIPALS AND ADMINISTRATORS AND LIBRARIANS ARE BEING LAID OFF JANITORS, BUS DRIVERS.
AND SO, UH, WITH, WITH THE JANITORS AS WELL, WITH THE SCHOOL DISTRICT BEING ONE OF THE CITY'S LARGEST EMPLOYERS, YOU KNOW, MASS LAYOFFS ARE GONNA HAVE AN IMPACT ON OUR COMMUNITY.
UM, THAT SALES TAX NUMBER'S GONNA GO DOWN IF THERE'S MORE FOLKS WHO ARE, WHO ARE UNEMPLOYED.
AND SO, MY OFFICE IS GONNA BE TRACKING, UM, THOSE EMPLOYMENT FIGURES IN PARTICULAR AS PART OF OUR, OUR MODELING FOR, FOR FUTURE REVENUES.
BUT WE WANT THE SCHOOL DISTRICT TO BE ROBUST FOR ANY NUMBER OF REASONS.
THE MOST IMPORTANT OF WHICH IS BECAUSE OUR FUTURE AS A CITY DEPENDS ON THE QUALITY OF THE PUBLIC EDUCATION THAT OUR, THAT OUR KIDS ARE, UH, RECEIVING AND THEIR PREPARATION TO ENTER THE JOBS OF THE FUTURE,
[00:45:01]
UH, IN YEARS FROM NOW.SO, WE'RE GONNA KEEP, WE'RE GONNA KEEP FIGHTING THAT FIGHT, BUT I, I WILL SAY, WE'RE THAT WHILE WE'RE STUCK, YOU KNOW, WITH THE HISD TAKEOVER, I WISH THEM THE BEST BECAUSE I WANT OUR KIDS TO RECEIVE AN, AN EDUCATION THAT, THAT WE CAN BE PROUD OF.
CONTROLLER HALLS, THANKS SO MUCH FOR ANSWERING THAT QUESTION, AND THANK YOU REPRESENTATIVE JONES FOR, UH, FOR THE ASK.
UM, JUST A COUPLE OF, UH, QUICK GROUND RULES ALSO ABOUT THIS.
DEFINITELY AS, UH, UH, REPRESENTATIVE JONES HAS SHOWN THE INITIATIVE, PLEASE, IF YOU DO HAVE A QUESTION, COME UP TO THE, UH, MIC THAT'S IN THE CENTER, UM, AND, UH, PROVIDE YOUR QUESTION FOR THE CONTROLLER.
WE ALSO ARE TAKING QUESTIONS ONLINE FROM THOSE WHO HAVE ASKED QUESTIONS, UH, VIA OUR FACEBOOK LIVE FEED AND OUR ZOOM FEED.
I HAVE SOME OF THOSE QUESTIONS HERE, AND SO I'LL ALSO PROVIDE SOME OF THOSE, UM, IN BETWEEN, IN A SEQUENCE BETWEEN THE QUESTIONS THAT WE HAVE COMING FROM PEOPLE WHO ARE HERE IN PERSON, AND THE PEOPLE, LIKE I SAID, WHO ARE WATCHING ONLINE.
UM, I'LL GIVE ONE OF THE FIRST ONES THAT WE HAVE.
AND THE QUESTION, UH, COMES FROM AN ALISON PRITCHETT WHO WAS ASKING HOW WILL DEFICITS FROM PREVIOUS YEARS BE ADDRESSED TO GET BACK CASH FLOW, TO GET BACK TO CASH FLOW NEUTRAL AS A MUNICIPALITY IN THE COMING YEARS, RIGHT? SO, I MEAN, LOOK WHERE WE ARE, RIGHT? WHEN WE THINK ABOUT THIS FUND BALANCE THAT WE'RE PROJECTING FOR THE END OF THE YEAR, UH, WHICH AGAIN, UPWARDS OF $400 MILLION, THAT'S OUR, THAT'S OUR SNAPSHOT IN TIME.
SO EVERYTHING THAT WE'VE DONE UP UNTIL NOW HAS LED US TO THIS POINT.
SO WHAT WE KNOW IS THAT WE HAVE THIS FUND BALANCE OF, OF A BIT OVER $400 MILLION THAT WE'RE PROJECTED TO SPEND DOWN 200 OF THAT IN THE COMING YEAR.
AND THAT'S WHAT WE HAVE TO FIX.
AND SO YOU'RE GONNA GET TIRED OF HEARING ME SAY THIS, WE HAVE TO INCREASE REVENUES OR WE HAVE TO DECREASE COST OR SOME COMBINATION OF BOTH, AND, AND WE HAVE TO START MAKING THOSE DECISIONS ASAP.
UH, WE'VE HEARD FROM, UH, THE MAYOR'S FINANCE TEAM, A COUPLE OF THINGS THAT THEY MAY BE EXPLORING.
UH, JUST TODAY, FINANCE DIRECTOR DEBOWSKI TALKED ABOUT POTENTIALLY A GARBAGE FEE.
UM, SHE ALSO TALKED ABOUT, UH, JUST RAISING PROPERTY TAXES, AND THAT WOULD HAVE TO GO TO HOUSTONIANS FOR A VOTE.
UH, SINCE WE HAVE THE REVENUE CAP, YOU WOULD HAVE TO VOTE TO APPROVE, UH, THAT TAX INCREASE ON, ON YOURSELVES AND CITY COUNCIL AND THE MAYOR WOULD'VE TO DECIDE WHETHER THEY WERE GONNA PUT THAT FORWARD.
BUT IT IS, UH, IT IS SOMETHING THAT IS BEING EXPLORED.
UM, AND THEN THERE'S ALSO, AND I, I'M NOT AS WELL VERSED ON THIS ONE, BUT, UM, AN ATTEMPT TO, YOU KNOW, Y'ALL, WE, WE, Y'ALL SAW HOW THE WATER SYSTEM IS IN THE ENTERPRISE FUNDS AND THE OTHER FUNDS.
UM, BUT THERE IS SOMETHING THAT'S BEEN EXPLORED, I BELIEVE, IN SOME OF THE OTHER MAJOR CITIES WHERE THE GENERAL FUND WOULD, WOULD CHARGE SOME KIND OF FRANCHISE FEE TO THE WATER AUTHORITY, AND THAT WOULD PUT SOME MONEY BACK INTO GENERAL FUND COFFERS.
AGAIN, THIS IS SOMETHING THAT I THINK IS BEING EXPLORED OVER THE NEXT YEAR.
MY OFFICE WILL DIG INTO EACH OF THESE OPTIONS TO HELP US UNDERSTAND THE TRUE REVENUE OPPORTUNITY AND WHAT THE, WHAT THE COST AND TRADE OFFS ARE, UH, OF THOSE.
BUT WE'LL HAVE TO WAIT AND SEE WHAT, UM, THE MAYOR AND HIS TEAM PROPOSED.
I HAVE ONE MORE QUESTION THAT I DO WANT TO ASK FROM OUR, UM, OUR, UH, ONLINE, ONLINE, UH, RECIPIENTS.
UH, THIS ONE ACTUALLY WAS ASKED ABOUT THREE TIMES BY THREE DIFFERENT CITIZENS.
IT IS, UH, ONE OF THOSE ELEPHANTS IN THE ROOM.
WHAT ARE THE IMPLICATIONS AND HOW ARE WE ACTUALLY GOING TO PAY OUR HOUSTON FIREFIGHTERS? YEAH.
UH, SO I TALKED JUST A LITTLE BIT ABOUT THIS ALREADY, BUT I'LL GO INTO TO SOME MORE DEPTH.
AGAIN, WHAT WE'RE DEALING WITH IS, UH, FIREFIGHTERS, 4,000 PEOPLE WHO PUT ON A UNIFORM DAY IN AND DAY OUT, UH, TO KEEP US SAFE, WHO HAVE NOT, UH, NUMBER ONE, HAD A CONTRACT AND THE SECURITY THAT COMES ALONG WITH THE CONTRACT, UH, FOR, UH, SEVEN YEARS NOW.
AND THEN NUMBER TWO, WHO, UH, OBJECTIVELY HAVE BEEN UNDERPAID ACCORDING TO THEIR MAJOR CITY PEERS ACROSS TEXAS, UH, FOR A NUMBER OF YEARS.
AND SO BECAUSE OF THAT, THERE'S TWO THINGS WE HAVE TO DO.
ONE IS COME TO A SETTLEMENT ON BACK PAY.
TWO IS, UH, IS INTER COLLECTIVE BARGAINING AGREEMENT THAT WILL GIVE THEM THE SECURITY GOING FORWARD, UM, THAT THEY NEED.
THAT INCLUDES COMPENSATION AND, AND ANY NUMBER OF OTHER ELEMENTS THAT A BARGAINING UNIT, UM, MIGHT BE THINKING ABOUT.
WHAT'S ON THE TABLE RIGHT NOW IS $650 MILLION FOR BACK PAY.
TO PUT THAT IN PERSPECTIVE, BECAUSE THAT'S JUST A BIG NUMBER THAT YOU MIGHT NOT FULLY GRASP.
IF YOU THINK ABOUT THOSE 4,000 FIREFIGHTERS, UM, WHO WILL, UH, RECEIVE A LUMP SUM CHECK IN THAT SETTLEMENT, THE AVERAGE FIREFIGHTER, FIREFIGHTER WILL RECEIVE A CHECK IN THE REALM OF $160,000.
[00:50:03]
UH, WHICH, IF YOU THINK ABOUT THAT OVER A SEVEN YEAR PERIOD, UH, IS IN THE 20 TO $25,000 RANGE, UH, PER YEAR.UM, IT'S A SIGNIFICANT NUMBER.
AND AGAIN, COUNSEL WILL HAVE TO DECIDE, YOU KNOW, THIS, THIS PROPOSED AGREEMENT, UH, WAS REACHED BY THE MAYOR AND HIS LEGAL TEAM AND THE FIREFIGHTERS, UH, UNION, UH, SPECIFICALLY THEIR LEADERSHIP.
AND NOW THAT HAS TO GO TO CITY COUNCIL TO BE APPROVED, AND IT'LL BE UP TO THEM TO MAKE THAT DECISION.
THE NEXT PIECE OF THIS IS THE COLLECTIVE BARGAINING AGREEMENT GOING FORWARD.
SO WHAT'S IN THERE? UH, WELL, I'VE JUST GOTTEN A LIVE COPY OF IT YESTERDAY AFTERNOON.
AND SO ONE THING I'M DOING IS READING THROUGH IT, UH, PAGE BY PAGE AND, AND, AND TAKING MY TIME TO MAKE SURE THAT, THAT I UNDERSTAND IT.
UM, BUT WHAT WE KNOW IS IN THERE IS A 10% RAISE GOING INTO NEXT FISCAL YEAR.
AND BY OUR MATH, EVEN WITH THAT 10% RAISE, FIREFIGHTERS WILL STILL BE PAID LESS THAN THEIR AVERAGE, UH, PEERS ACROSS MAJOR CITIES IN TEXAS, UH, FOR THE FOUR YEARS AFTER THAT.
WE'RE LOOKING AT 6% RAISES, UH, EVERY YEAR, UH, FOR FOUR YEARS.
AND SO THAT STARTS TO OBVIOUSLY GET A LITTLE COSTLY IN OUR FIRST YEAR, YEAR ONE, UM, WE'RE LOOKING AT, WE'RE STILL ABOUT TO PRICE THESE BONDS, SO THAT $650 MILLION WE'LL BE PAID FOR BY A BOND, BECAUSE AS YOU SAW, WE DON'T HAVE $650 MILLION IN CASH LAYING AROUND.
SO WE WOULD GO TO THE MARKETS, UM, ISSUE BONDS AND GET THAT $650 MILLION TO PAY THE FIREFIGHTERS THAT BOND WOULD BE PAID OUT, UH, OVER A 25 TO 30 YEAR PERIOD.
AND, UH, WE'RE LOOKING AT INTEREST RATES RIGHT NOW.
WE'RE IN A HISTORICALLY HIGH INTEREST RATE ENVIRONMENT RIGHT NOW.
SO MY OFFICE HAS LOOKED AT INTEREST RATES IN THE FOUR AND A HALF TO 5.5% RANGE.
UM, THAT WILL COST US, DEPENDING ON THE INTEREST RATE AND DEPENDING ON THE DURATION OF THE BOND, SOMEWHERE BETWEEN 1.1 AND $1.3 BILLION OVER THAT TIMEFRAME, WHICH AVERAGES OUT TO AN ANNUAL PAYMENT OF 40 TO $45 MILLION.
SO THAT'S JUST FOR THE BACK PAY.
UH, IF WE LOOK AT THE 10% RAISE, UH, IN YEAR ONE, THAT'S PROJECTED TO COST US $36 MILLION FOR THE RAISE.
AND SOMEWHERE IN THE BALLPARK OF 10, I BELIEVE I HEARD NOW, THE NUMBER $13 MILLION, UH, FOR SPECIAL PAY FOR FIREFIGHTERS.
THAT INCLUDES INCENTIVES LIKE FOR INSTANCE, UH, SPECIAL TRAINING, UM, OR ACHIEVING A BACHELOR'S DEGREE OR SOMETHING OF THAT NATURE.
AND, UM, AND SO JUST TAKING ALL THOSE NUMBERS, UH, THAT I JUST LAID OUT, YOU KNOW, $40 MILLION BOND PAYMENT, $36 MILLION FOR, UH, FOR A 10% RAISE AND $13 MILLION IN SPECIALS, YOU'RE LOOKING AT AROUND 90 MILLION, UH, JUST FOR FIREFIGHTERS ALONE.
UH, NEXT YEAR, UH, I BELIEVE THAT IT'S THE FINANCE DEPARTMENT'S INTENTION TO, UM, SOMEHOW GET THAT BOND PAYMENT LO LOWER FOR YEAR ONE TO AROUND $30 MILLION INSTEAD OF 40.
THAT'LL SAVE US $10 MILLION NOW, BUT AGAIN, ALL YOU'RE DOING IS MOVING THAT EXPENSE, UH, INTO THE FUTURE, AND IT'S GONNA COST US A LITTLE BIT MORE, UH, WITH INTEREST COMING YEARS.
SO, UM, THAT'S WHAT'S ON THE TABLE RIGHT NOW.
UH, CITY COUNCIL IN THE SAME WAY THAT, THAT, I JUST GOT THIS, UH, YOU KNOW, 120 PAGES WORTH OF STUFF YESTERDAY AFTERNOON.
CITY COUNCIL JUST GOT IT YESTERDAY AFTERNOON AS WELL.
THEY'RE READING THROUGH IT, AND THEY'RE GONNA HAVE TO DECIDE AND TAKE A VOTE ON IF THEY AGREE WITH WHAT'S IN BOTH THE BACK PAY SETTLEMENT AS WELL AS THE COLLECTIVE BARGAINING AGREEMENT.
UM, AS WE READ MORE, UM, YOU KNOW, WE'LL BE TRANSPARENT ABOUT WHAT WE FIND.
AGAIN, WE'LL TRY TO EXPLAIN IT TO YOU IN A WAY THAT YOU CAN UNDERSTAND, AND WE'LL TRY TO EXPLAIN IT TO POLICY MAKERS IN A WAY THAT THEY CAN UNDERSTAND.
BUT I, UH, I IMAGINE THAT CITY COUNCIL MEMBERS ARE TAKING THIS QUITE SERIOUSLY, GIVEN THE MAGNITUDE AND THAT THEY'RE EDUCATING THEMSELVES ON, ON THE, THE ISSUES AND, UH, THE SPECIFICS OF THE PROPOSED AGREEMENT AS WELL.
UH, WE ARE STILL, LIKE I SAID, TAKING QUESTIONS FROM THE FLOOR, SO DEFINITELY IF YOU DO HAVE ONE, PLEASE COME UP.
UH, IF YOU'D LIKE, YOU CAN ALSO USE THE QUESTION CARDS THAT YOU HAVE AT YOUR SEAT AND PROVIDE THOSE QUESTIONS, AND I CAN ASK THEM AS WELL.
CONTROLLER HOLLANDS FOR HOSTING THIS EVENT TODAY.
UM, THE BIDEN ADMINISTRATION APPROVED AN INFRASTRUCTURE BILL MM-HMM
UM, WILL WE HAVE ANY RELIEF FROM THAT, UM, CONCERNING FISCAL YEAR 24, 25,
[00:55:01]
OR 26? SO, UH, WE'RE NOT GONNA GET A LOT OF RELIEF FROM THAT WHEN IT COMES TO GENERAL FUND DOLLARS.WHAT WE CAN DO IS DO A LOT OF GOOD RIGHT, BY PURSUING INFRASTRUCTURE PROJECTS THAT WE OTHERWISE NOT, MAY NOT BE ABLE, UH, TO, TO ACHIEVE, YOU KNOW, ON OUR OWN.
AND, YOU KNOW, ONE THING THAT WE ARE GONNA BE LOOKING AT, UH, WITH OUR AUDITS IN THE COMING FISCAL YEAR IS GRANTS, THE CITY'S ABILITY TO, UH, AND APTITUDE FOR APPLYING FOR THESE GRANTS, AND THEN ALSO OUR ABILITY TO EXECUTE ON THOSE PROPERLY SO THAT WE CAN DEPLOY THOSE FUNDS AND, AND UTILIZE THEM ONCE WE, ONCE WE WIN THEM.
UM, THE INFRASTRUCTURE BILL IS $1.5 TRILLION.
UM, SOME OF THAT'S GOING OUT BY WHAT'S CALLED FORMULA FUNDING, BUT A WHOLE LOT OF IT IS COMPETITIVE.
AND SO WHEN WE THINK ABOUT THE TREMENDOUS NEEDS THAT WE HAVE FROM AN INFRASTRUCTURE STANDPOINT HERE IN THE CITY OF HOUSTON, UH, PARTICULARLY AROUND, YOU KNOW, FLOODING AND DRAINAGE, WE ALSO HEAR A LOT ABOUT, UH, THE IKE D**E AND, UH, WHAT WE C CAN AND SHOULD DO TO PROTECT, UM, YOU KNOW, THESE, THESE, THESE AREAS FROM WHAT COULD BE A REALLY, UH, DEVASTATING, UH, FUTURE WEATHER EVENT.
WE NEED TO BE GOING OUT AND SEEKING THOSE FUNDS.
THAT MEANS NOT ONLY OUR CITY GOING UP TO DC BUT ALSO COMING TOGETHER WITH, WITH OUR COUNTY, WITH THE BROADER REGION WITH BUSINESS LEADERS TO SAY, LOOK, THESE PROJECTS ARE PRIORITIES FOR THE CITY OF HOUSTON OR FOR THE GREATER HOUSTON REGION, AND WE NEED THIS FUNDING.
AND OF COURSE, DOING ALL THE PAPERWORK ASSOCIATED WITH THAT AND THE STUDIES AND X, Y, AND Z TO BRING THOSE DOLLARS HOME.
UM, ONE THING I'M PARTICULARLY DISAPPOINTED IN IS WHAT SEEMS TO BE, UH, THE, THE STALLING OF IMPORTANT PROJECTS TO EXPAND OUR METRO SYSTEM.
AGAIN, WE ARE A GROWING CITY, AND TO BE A WORLD-CLASS CITY, WE NEED WORLD-CLASS PUBLIC TRANSIT.
AND, UM, AND WE DON'T HAVE IT.
WE HAD BEEN MOVING IN, IN THE RIGHT DIRECTION AFTER BEING INSTALLED, UH, FOR DECADES.
AND IN 2019, UH, YOU VOTED ON THE METRO NEXT PLAN, WHICH WAS GOING TO BE A $7 BILLION EXPANSION OF THE PROGRAM THAT INCLUDED A TRAIN, A HOBBY, RAPID BUS TRANSIT TO, TO BUSH, AND A CONTINENTAL, UH, AND OTHER, UH, RAIL AND, AND BRT BUS RAPID TRANSIT SYSTEMS THAT MADE THE SYSTEM WHOLE, AND THAT MADE YOU MADE IT POSSIBLE TO GET FROM POINT A TO POINT BA LITTLE BIT FASTER THAN YOU CAN, UH, TODAY ON METRO, UM, FROM WHAT I CAN TELL, THE PLUG HAS BEEN PULLED ON ALL OF THAT, AND THAT MAY VERY WELL BE TEMPORARY, GIVEN THAT THERE'S A NEW BOARD AND THEY NEED TO GET THEIR FEET UNDERNEATH THEM AND SO ON.
UM, HOWEVER, WHEN YOU'RE DEALING WITH, WITH FEDERAL FUNDS, THESE PROJECTS DON'T STICK AROUND.
WE, WE MIGHT SAY, HEY, WE'LL HOLD OFF FOR A YEAR AND THEN WE'LL REVISIT IT.
THOSE FUNDS MAY NOT BE AVAILABLE A YEAR FROM NOW, AND FUNDS THAT MIGHT HAVE ALREADY BEEN EARMARKED OR COMMITTED TO US, THEY MIGHT YANK THAT BACK AND PUT THEM SOMEWHERE ELSE IF THEY, IF THEY SEE THAT WE ARE NOT TAKING THIS AS SERIOUSLY OR WE'RE NOT GUARANTEED TO MOVE FORWARD.
SO, UM, SO, YOU KNOW, LITTLE SIDE NOTE, UH, I'M, I'M VERY CONCERNED ABOUT METRO AND THE STATE OF PUBLIC TRANSIT, PARTICULARLY EXPANDING THE SYSTEM TO, TO MAKE IT WORK FOR EVERYBODY.
UM, BUT BIGGER PICTURE IS THAT WE AS A CITY AND AS A REGION NEED TO BE FOCUSED, UH, ON THE BILLIONS OF DOLLARS THAT FLOW THROUGH FEDERAL GRANTS EVERY YEAR AND, AND THE AMOUNT THAT WE COULD BRING HOME TO SERVE HOUSTONIANS.
YEAH, JUST A LITTLE BIT, UH, RUNNER, I WAS JUST LOOKING AT OUR TIME AND I KNOW WE HAVE HIT JUST PAST SEVEN 30.
I DO WANT IN THE INTEREST OF TIME FOR THE PEOPLE WHO ARE HERE IN PERSON FOR YOU TO HAVE AN OPPORTUNITY TO TAKE YOUR QUESTIONS.
DO YOU MIND? I'M HERE ALL NIGHT.
UH, FOR PEOPLE WHO DO HAVE ONLINE QUESTIONS, DON'T WORRY.
WE WILL COLLECT THOSE AND GATHER THOSE AND TRY TO PROVIDE RESPONSES FOR YOU.
BUT THE REMAINING QUESTIONS WE WILL TAKE FROM THE FLOOR.
HI, MS. HOLLINS, UM, DAVID ESPINOZA.
I'M WITH, UH, WESTERN RECOVERY AND THE NORTHEAST COLLECTIVE.
UM, ACTUALLY, IF YOU REMEMBER, WE, OUR GROUP, UH, DID TRY TO HAVE A, HAVE FEW MEMBER RESIDENTS DO ONE-ON-ONE WITH YOU,
BUT PRETTY MUCH A SMALL PERCENTAGE OF THE PROPERTY TAX, UH, WOULD GO TO DRAINAGE.
ALTHOUGH DURING THE TERM ADMINISTRATION, THERE WAS SOME, UM, LESS THAN WE THAT WAS, THAN WHAT WAS VOTED ON, WHICH I BELIEVE WE VOTED FOR, I BELIEVE 11.8%.
[01:00:01]
11.8%, YES.UH, AND IT WENT SOMEWHERE CLOSER TO 10.
UH, SO THAT LEFT, UH, WHAT YOU, WHAT YOU SAID SOMEWHERE, I THINK BETWEEN 90 AND 115 MILLION.
SO JUST TO EXPLAIN TO THOSE, UH, WHO ARE HERE AND, AND ONLINE.
UH, WHAT'S BEING REFERRED TO WAS AN ELECTION MM-HMM
UM, IN HOUSTON THAT, UM, THAT COMMITTED THE CITY TO INVESTING, YOU KNOW, OUT OF THAT TAX RATE, WHICH TODAY IS 51.90 CENTS PER $100 OF PROPERTY VALUE TO TAKE 11.8 PER 11.80 CENTS OR IT'S EQUIVALENT AND INVEST THAT IN DRAINAGE PROJECTS.
UM, THE CITY HAS TAKEN THE PERSPECTIVE AT THAT LANGUAGE, YOU KNOW, OR IT'S EQUIVALENT IS IMPORTANT BECAUSE AS THE CITY'S TAX RATE, ONE, ONE SLIDE THAT WE DIDN'T HAVE IN HERE IS THAT YOUR TAX RATE HAS GONE DOWN NINE OUT OF THE LAST 10 YEARS BECAUSE OF THE REVENUE CAP.
AND SO WHEN THE TAX RATE WENT DOWN, THE CITY SAID, WELL, THE EQUIVALENT OF 11.80 CENTS HAS ALSO GONE DOWN.
AND THAT'S THE APPROACH THAT, THAT'S BEEN TAKEN.
AND SO UP UNTIL NOW, AND I, I THINK IN FACT WHAT'S SORT OF IN OUR PROPOSED BUDGET NOW IS THAT THAT EQUIVALENT IS IN THE BALLPARK OF $200 MILLION.
NOW, JUST A COUPLE OF WEEKS AGO, UH, THE CITY LOST A LAWSUIT.
ON THAT WHERE THE VERDICT WAS, YOU GOTTA PUT THE WHOLE 11.80 CENTS IN.
IN FACT, IT WOULD EXCEED $300 MILLION.
SO THERE'S ABOUT A HUNDRED MILLION DOLLARS GAP THAT THE CITY WOULD HAVE TO COVER.
UH, THE CITY HAS EXPRESSED THAT IT PLANS TO APPEAL THAT JUDGMENT.
AND SO, UM, WE'RE, WE'RE IN WAIT AND SEE MODE MM-HMM
BUT AS OF THIS MOMENT, AGAIN, THE BALLPARK IS ABOUT $200 MILLION THAT'S GOING INTO THOSE DRAINAGE PROJECTS BASED ON, UH, THE 11.80 CENTS POLICY.
UH, IF THE CITY WERE TO LOSE OR TO, UM, OR TO NO LONGER APPEAL THAT JUDGMENT, THAT WOULD HAVE TO INCREASE TO $300 MILLION AND WE WOULD HAVE TO FIND THAT MONEY.
I, I REMEMBER YOU SORT OF EXPLAINED THAT, AND YOU SAID THAT EXPLAINED THAT WAY BETTER THAN I COULD.
BUT I SUPPOSE THE OTHER QUESTION REALLY IS, AND HOW DO WE AVOID HAVING ANOTHER, UH, FIREFIGHTER BACK PAY SITUATION ON DRAINAGE? UM, I, I DON'T KNOW IF THAT'S, IS THAT GONNA BE ADDRESSED AFTER THE FIREFIGHTER DEAL OR I, I GUESS HAVE Y'ALL STARTED PLANNING ON SURE.
HOW TO SOLVE THAT? SO, UM, IN THE JUDGMENT, UM, THE JUDGE MADE IT CLEAR THAT THE JUDGMENT WAS NOT BACKWARD LOOKING.
AND SO IT APPLIES ONLY TO, UH, THE FUTURE.
HOWEVER, NOW THAT THE JUDGMENT HAS BEEN MADE WITH THIS APPEAL, THE QUESTION IS, WELL, LET'S SAY THIS GOES ANOTHER YEAR AND A HALF AND, AND THE CITY LOSES ON APPEAL.
WOULD THAT COST KIND OF BACKDATE TO TODAY? MM-HMM
UH, THAT'S A QUESTION THAT WE INQUIRED OF THE CITY ATTORNEY TO, TO GET AN OPINION, AND WE HAVE NOT GOTTEN A RESPONSE ON THAT YET.
UM, WHAT WE DO KNOW IS THAT IN THIS BUDGET, THERE IS NO CONTINGENCY IN THE, IN THE CURRENT PROPOSED BUDGET FOR A SCENARIO IN WHICH WE LOSE AND SUDDENLY HAVE, YOU KNOW, A WATER INVESTMENT BILL THAT'S A DRAINAGE INVESTMENT BILL THAT'S A HUNDRED MILLION DOLLARS HIGHER.
AND SO, UM, THAT IS A, THAT'S A SERIOUS CONCERN.
WE DO HAVE THIS FUND BALANCE, BUT AGAIN, THAT, THAT ITSELF IS GOING, UH, IT'S STARTING TO DWINDLE, BUT WE, WE HAVE TO THINK ABOUT THE, THE POTENTIAL THAT, UH, THAT THE CITY LOSES A LAWSUIT AND HAS TO INVEST MORE MM-HMM
AND BEYOND THE LAWSUIT, WE HAVE TO UNDERSTAND THE REALITY THAT THE CITY NEEDS TO INVEST MORE, UH, IN THESE IMPORTANT PROJECTS.
AND SO I KNOW THAT COUNCILWOMAN, UH, SALLY ALCORN, WHEN, WHEN SHE'S TALKED ABOUT A POTENTIAL TAX INCREASE, MANY IN THE MAYORAL ADMINISTRATION TALK ABOUT IT AS A PUBLIC SAFETY ADD-ON, WHEREAS COUNCIL MEMBER ALCORN HAS BEEN CLEAR THAT NEED TO RAISE IT TO PUT MORE INTO, TO DRAINAGE PROJECTS, UH, AND INFRASTRUCTURE AS WELL.
THANKS FOR, UH, HAVING THESE TO IMPROVE TRANSPARENCIES.
UM, YOU MENTIONED RAISING REVENUES AND ALSO CUTTING BACK ON EXPENSES, THE, UH, POTENTIAL RAISES THAT ARE GOING TO FIREFIGHTERS AND ANY OTHER POTENTIAL RAISES THAT WILL GO TO POLICE.
ARE THEY PERCENT OF BUDGET WISE GOING TO BE PERMANENT FIXTURES IN THE BUDGET? OR ARE WE EVER ALLOWED TO DECREASE WHAT WE PAY THEM? SO BY STATE LAW, WE CANNOT DECREASE, UH, THE POLICE BUDGET
[01:05:01]
THAT, UH, AND THAT'S A, YOU KNOW, WHAT WE GOT FROM BACKLASH TO DEFUND THE POLICE AND YADA YADA YADA.AND SO, UM, SO THAT'S WHERE WE ARE WHEN IT COMES TO, TO POLICE.
AND HISTORICALLY, THAT NUMBER HAS NEVER GONE DOWN ANYWAY.
AND SO IT'S A LAW THAT WAS PASSED, UH, FOR NO REASON, BUT WE, UH, BY LAW CANNOT DECREASE THE POLICE BUDGET.
THAT'S, THAT DOES NOT APPLY TO THE FIRE BUDGET.
HOWEVER, WHEN YOU THINK ABOUT RAISES THAT ARE, THAT ARE GOING TO BE COMING IN YEARS TO COME, AND THIS IS, AND I DON'T WANNA MAKE IT LIKE FIRES THE BAD GUYS HERE, FIRE POLICE AND, AND ALL OTHER CITIES AND CITY EMPLOYEES, RIGHT? WE ALL UNDERSTAND THAT WE'RE DEALING WITH INFLATION, YOU KNOW, OUT IN THE MARKET.
UH, PEOPLE WANT A RAISE, YOU KNOW, YEAR OVER YEAR BECAUSE OF THE INCREASE IN COST OF LIVING.
AND SO WHEN THAT COST OF LIVING INCREASE GOES IN, UM, THEN THE CITY PAYS FOR THAT AND WE HAVE TO FIGURE OUT HOW TO PAY FOR IT.
UM, FIRE AS A PERCENT OF THE TOTAL BUDGET IS DEFINITELY GOING TO GO UP IN, UM, IN THIS YEAR.
I IMAGINE THAT IT WILL INCREASE SLIGHTLY IN THOSE CONTINUING YEARS.
AND THIS, THIS ALL ASSUMES THAT THE CBA PASSES UNCHANGED.
UM, FROM THERE, I IMAGINE IT WOULD, IT WOULD FLATTEN OUT.
I'M WITH THE NORTHEAST ACTION COLLECTIVE.
THANKS FOR MEETING WITH US A FEW WEEKS AGO.
UM, SINCE THE BUDGET HAS BEEN RELEASED, SINCE THE MAYOR'S INITIAL BUDGET HAS BEEN RELEASED, UH, WE'VE SEEN THAT, UM, IN THAT INITIAL BUDGET, THE FUNDING FOR PUBLIC WORKS AS A WHOLE HAS ACTUALLY BEEN CUT BY $700,000, SO ALMOST A MILLION DOLLARS.
AND THIS IS AT A TIME WHERE OVERALL ACROSS THE BOARD WE'RE SAYING THAT WE NEED MORE MONEY, NOT LESS MONEY FOR INFRASTRUCTURE AND SPECIFICALLY CAPACITY O AND M FOR PUBLIC WORKS.
UM, IT'S BEEN A LITTLE BIT HARD DIGGING THROUGH THE NUMBERS ACTUALLY, IN THE PACKET.
SO COULD YOU KIND OF EXPLAIN WHERE ARE THE CUTS WITHIN PUBLIC WORKS? WHERE IS THAT $700,000 COMING FROM? SURE.
AND SO, UH, I ONE I, I SHARE, UH, YOUR CONCERN AND YOUR FRUSTRATION WITH HOW HARD IT IS TO FIND THIS INFORMATION.
UH, ONE OF THE THINGS THAT WE ARE ASKING CITY COUNCIL TO DO RIGHT NOW IS INVEST MORE IN THE TRANSPARENCY TOOLS THAT ARE AVAILABLE TO HOUSTONIAN SO THAT WHEN YOU GO TO LOOK INTO THESE FIGURES, THAT IT'S EASIER FOR YOU TO FIND, UH, WHAT YOU'RE LOOKING FOR.
I DON'T HAVE THE BUDGET SITTING HERE RIGHT IN FRONT OF ME.
HOWEVER, WHAT I THINK YOU'RE LOOKING AT IS THE PUBLIC WORKS BUDGET THAT'S WITHIN THE GENERAL FUND.
AND, UH, AND THAT'S A VERY, VERY SMALL PORTION OF THE PUBLIC WORKS BUDGET.
AND I THINK THAT WHAT YOU PROBABLY ARE SEEING ARE REDUCTIONS IN VACANCIES.
SO, SO POSTS THAT HAVE BEEN VACANT FOR A LONG PERIOD OF TIME, THOSE JUST BEING TAKEN OUT OF THE BUDGET TO SAY, HEY, WE'RE NOT GONNA HIRE THOSE POSITIONS GOING FORWARD.
MOST OF THE PUBLIC WORKS BUDGET IS NOT IN THE GENERAL FUND AT ALL, RIGHT? IT'S IN THAT WATER AND SEWER AND ROADS AND DRAINAGE PIECE THAT YOU SAW, UH, ON ONE OF THESE CHARTS.
AND THOSE FIGURES HAVE GONE UP SIGNIFICANTLY.
AND SO I THINK WE'RE GONNA BE DOING MORE, UH, TO INVEST IN, IN CRITICAL INFRASTRUCTURE FOR THE CITY THROUGH PUBLIC WORKS IN YEARS TO COME.
UH, AND SO YOU DON'T HAVE A, YOU DON'T HAVE A LOT TO BE WORRIED ABOUT THERE.
THE, THE CUTS THAT YOU'RE PROBABLY SEEING ON THE GENERAL FUND SIDE, UM, ARE, ARE VERY LIKELY, UH, VACANCIES CAN, BUT WHAT WE WANNA DO, YOU KNOW, WITH OUR NEW TRANSPARENCY TOOL, IF IT'S RIGHT, IS THAT YOU WOULDN'T BE ABLE TO MAKE, YOU KNOW, YOU'D BE ABLE TO SEE THE WHOLE PUBLIC WORKS BUDGET BECAUSE YOU COULD SIMPLY ASK, SHOW ME THE WHOLE PUBLIC WORKS BUDGET AND IT WOULD BE SPIT OUT FOR YOU.
WE WANNA MAKE THIS LIKE THE GOOGLE OF THE CITY OF HOUSTON TO WHERE YOU TYPE IN YOUR QUESTION, IT SAYS, HEY, HERE'S THE INFORMATION I THINK YOU'RE LOOKING FOR.
UM, WE'VE ALL BECOME ACCUSTOMED TO THAT OVER 20 YEARS NOW OF BEING ABLE TO GO ONLINE AND SEARCH AND GET INSTANT ACCESS TO, TO GOOD INFORMATION.
WE SHOULD HAVE THAT AVAILABLE FOR THE FINANCES AND THE OPERATIONS OF THE CITY OF HOUSTON.
AND WE DON'T, BUT WE HAVE, UM, WE'RE ASKING CITY COUNCIL IN THIS PROPOSED BUDGET TO MAKE AN AMENDMENT THAT WILL GIVE US THE RESOURCES TO INVEST IN A FUNCTIONAL AND USEFUL AND ACCESSIBLE, UH, TRANSPARENCY TOOL THAT, THAT YOU AND ALL OF US CAN USE TO LEARN MORE ABOUT WHAT'S GOING ON WITH THE CITY FINANCES.
THANK YOU FOR YOUR THOROUGH ANSWER.
WE WOULD DEFINITELY SUPPORT THAT AMENDMENT.
UM, JUST A QUICK FOLLOW UP, IN TERMS OF VACANCIES.
YOU KNOW, WE'VE HEARD DIRECTLY FROM PUBLIC WORKS THAT STAFFING IS SOMETHING THAT THEY'RE SHORT ON AND THEY ARE TRYING TO ACTUALLY HIRE UP INSTEAD OF HIRING LESS.
SO IS THAT KIND OF JUST LIKE, UM, A SORT OF TECHNICAL
[01:10:01]
ACCOUNTING THING, OR HOW DOES REMOVING VACANCIES WORK? UH, YES.I THINK IT WOULD BE ACCURATE TO CALL IT A TECHNICAL ACCOUNTING THING.
UM, WHAT, WHAT WE'RE S FROM, FROM WHAT WE CAN SEE, THE VACANCIES THAT ARE BEING PULLED OFF OF THOSE ROSTERS, IT'S NOT LIKE, HEY, SOMEBODY LEFT A JOB, YOU KNOW, A COUPLE MONTHS AGO WE HAVEN'T FOUND SOMEBODY, AND ALL OF A SUDDEN WE'RE LOSING THAT POST.
THESE ARE POSTS THAT HAVE EXISTED ON THEIR ROSTER FOR MULTIPLE YEARS AND HAVE NEVER BEEN FILLED, WHICH INDICATES TO AN OUTSIDE OBSERVER THAT MAYBE Y'ALL DON'T NEED THAT POSITION, RIGHT? BECAUSE YOU HAVEN'T ATTEMPTED TO FILL IT.
IT HASN'T BEEN POSTED, Y'ALL HAVEN'T HIRED SOMEONE INTO IT.
AND SO, UM, I, I IMAGINE THAT CONVERSATIONS WERE HAD WITH DEPARTMENT LEADERSHIP BEFORE GOING AND, AND PULLING THOSE VACANCIES OFF.
UM, BUT THEY WERE ALL VERY LONG STANDING VACANCIES FROM WHAT I CAN UNDERSTAND.
AND, AND THANK YOU ALL TO THE NORTHEAST ACTION COLLECTIVE FOR, UH, FOR YOUR ACTIVISM AND FOR, FOR BRINGING THESE ISSUES TO LIFE.
WE'LL TAKE THESE, JUST THESE LAST TWO QUESTIONS I WILL ASK, TRY TO KEEP YOUR QUESTIONS TO ABOUT A MINUTE OR SO, AND I'LL TRY TO TAKE, MAKE MY ANSWERS CONCISE.
UH, ALSO, CHRIS, THANK YOU FOR HAVING THIS, BUT YOU LOSE ME WITH A LOT OF TALK.
BOTTOM LINE, IS THE CITY BROKE? YES OR NO? THE CITY IS NOT BROKE.
TWO, WILL WE MAKE IT WITH THE FIRE DEPARTMENT AS IT IS? IF THEY WERE TO BE OKAY, IF THE COUNCIL WERE TO BE OKAY WITH WHAT THE MAYOR HAS PROPOSED, YES OR NO? UH, WE COULD MAKE IT FOR ONE YEAR AND THEN WE WOULD START TO RUN INTO SOME SERIOUS ISSUES.
THIRD QUESTION, WILL YOU AS THE CONTROLLER TALK LOUD AND SCREAM THAT, NO, WE SHOULD NOT DO IT? OR ARE YOU FOR IT FOR THAT ONE YEAR? OR WOULD YOU SAY, NO, THIS IS NOT WHAT WE SHOULD DO? ONE WORD, I'M NOT A POLICYMAKER.
UH, YOU ELECTED A MAYOR AND YOU ELECTED MEMBERS OF CITY COUNCIL WHOSE JOB IT IS TO VOTE ON THESE ITEMS. UH, OUR JOB IS TO SHARE THE FACTS.
AND SO WE'RE LAYING OUT THOSE FACTS AS CLEARLY AS WE KNOW HOW.
AND, UH, AND WE'VE, WE'VE DONE OUR BEST.
YOU WILL TAKE A BIG STAND TO DISAGREE OR TO SUPPORT.
YES, WE WILL TELL THE TRUTH ABOUT WHAT'S IN IT, AND OUR CITY COUNCIL AND OUR MAYOR WILL, WILL TAKE THAT VOTE.
UM, I JUST HAVE A QUESTION, AND MAYBE YOU CAN HELP ME OUT WITH TIERS OR TAX INVESTMENT REDEVELOPMENTS ON TIER TSTS IS HOW IT'S, OKAY, WHERE DOES THAT FIT IN? THAT SEEMS LIKE WHERE ALL THE MONEY IS.
WHEN I LOOK AT LIKE, THE BIG PROJECTS THAT ARE COMING THROUGH FOR LIKE LITTLE AREAS, IT ALL SEEMS TO COMING FROM THERE.
IS THERE ANY WAY TO CLAW SOME OF THAT BACK AND PUT THAT INTO THE GENERAL FUND AND DISTRIBUTE IT MORE EQUITABLY? SURE.
SO THIS CAN GET REALLY THORNY REALLY QUICKLY.
AND THIS IST ARE ALSO SOMETHING THAT'S IN OUR FISCAL YEAR 2025 AUDIT PLAN TO DIG IN TO, UM, HOW MUCH MONEY IS GOING INTO THOSE URGS, WHERE COULD IT GO OTHERWISE? UM, WHAT ARE THEY SPENDING IT ON? IS IT THINGS THAT, YOU KNOW, AGAIN, FROM AN EQUITY PERSPECTIVE MAKES SENSE FOR THE CITY OF HOUSTON? AND WHAT ARE SOME OPTIONS THAT WE HAVE TO POTENTIALLY REALLOCATE? WE'RE GONNA BE LOOKING AT ALL THOSE QUESTIONS IN, UH, YOU KNOW, OVER THE NEXT, UH, FISCAL YEAR THROUGH, THROUGH OUR AUDITS.
UM, BUT JUST TO EXPLAIN TO FOLKS WHAT WE'RE EVEN TALKING ABOUT.
UH, A TURS, A TAX INCREMENT REINVESTMENT ZONE.
THESE ARE AREAS THAT ARE SUPPOSED TO BE, UM, AREAS THAT ARE BLIGHTED THAT HAVE, THAT HAVE BEEN UNDER INVESTED IN, AND THEY'RE WALLED OFF, UM, BY POLICY.
AND THE POINT IS TO INCENTIVIZE INVESTMENT IN THOSE AREAS.
SO WHETHER IT'S DEVELOPERS WHO ARE BUILDING APARTMENT COMPLEXES OR STORE FRONTS OR WHAT HAVE YOU, YOU WANT THEM TO GO INTO THESE AREAS.
I, I USED TO SIT AND WAS HONORED TO SIT ON THE EAST DOWNTOWN TOURS, AND IF YOU WERE TO GO BACK TO THE NINETIES WHEN, WHEN I WAS GROWING UP IN HOUSTON AND HAD NO IDEA THAT THERE WAS A THING CALLED EAST DOWNTOWN, YOU KNOW, WE'RE TALKING ABOUT AN AREA THAT WAS, THAT WAS PRETTY RUN DOWN, RIGHT? UM, A LOT OF MECHANIC SHOPS AND INDUSTRIAL STUFF, RIGHT? AND I THINK WE ALL SEE WHAT EAST DOWNTOWN IS TODAY.
IT'S, UH, IT'S AN INCREDIBLE AREA OF SEEING CONTINUED GROWTH AND THERE'S STILL A NEED FOR ADDITIONAL INVESTMENT THERE.
UM, SO THAT WAS WALLED OFF IN, I WANNA SAY 1999.
INVESTORS COME IN AND START TO BUILD PARTS OF WHAT YOU SEE TODAY.
AND AS THE TAXABLE VALUE OF THAT AREA GOES UP, INSTEAD OF THAT FLOWING INTO THE GENERAL FUND, THAT INCREMENT THE INCREASE IN THE PROPERTY VALUES, UM, THAT MONEY KIND OF STAYS HOME IN EAST DOWNTOWN.
AND THEN IT GETS REINVESTED INTO THINGS THAT YOU WOULD DO
[01:15:01]
ANYWHERE, RIGHT? STREETS, SIDEWALKS, PARKS, BEAUTIFICATION, UH, ET CETERA.SO THAT'S WHAT THE IDEA OF A TURS IS.
NOW, MANY PEOPLE, UM, WOULD SAY, WELL, THERE ARE SOME TURS WHERE, YOU KNOW, THAT AREA DOESN'T SEEM TO NEED ANY EXTRA INVESTMENT ANYMORE, RIGHT? OR IT MIGHT NOT HAVE NEEDED ANY EXTRA INVESTMENT ON THE DAY THAT THEY CREATED THE TURS.
UM, THAT'S WHAT WE'RE GONNA GO AND LOOK AT.
BUT AGAIN, WHAT WE'RE ALSO GONNA BE LOOKING AT, IT, IT, MY GUAR MY COMMITMENT TO YOU ALL IS WE'RE NEGATIVE GONNA BE GOING IN WITH THE WHOLE IDEA OF SLAPPING HANDS AND POINTING OUT WHO THE BAD GUYS ARE.
WHAT WE'RE GONNA BE DOING IS BRINGING SOLUTIONS TO THE FOREFRONT.
AND SO WHILE LOOKING AT DETER AND EXPLAINING TO Y'ALL WHAT'S HAPPENING, WE'RE ALSO GONNA SAY, HEY, AND HERE'S SOME THINGS THAT WE COULD DO THAT WOULD FURTHER MAXIMIZE THE INVESTMENT THAT WE'RE MAKING IN OUR CITY.
SO THAT IT'S, IT'S, IT'S BETTER IN THE LIVES OF ALL HOUSTONIANS.
I THINK I CALL IT THE TEARS BECAUSE IT'S BRING A LOT OF 'EM ARE BRINGING TEARS TO HIS INSTEAD.
AND THE LAST QUESTION, UH, JUST FOR ANYBODY THAT'S COME IN, I KNOW WE'VE HAD SOME PEOPLE WHO HAVE COME IN LATE.
IF YOU DIDN'T GET A CHANCE TO SIGN IN, WE DEFINITELY WOULD LIKE TO GET YOUR INFORMATION HERE.
SO DEFINITELY, UH, SIGN IN IN THE FRONT.
GOOD EVENING EVERYONE, AND THANK YOU CONTROLLER HOLLANDS FOR, UH, YOUR LEADERSHIP AND HAVING THIS TOWN HALL AND REALLY DIGGING INTO, UH, THE 2025 FISCAL BUDGET.
UH, I THINK MIRIAM'S QUESTION, UH, REALLY IS A GOOD SEGUE TO MINE.
AND I I WANT TO FOCUS ON YOUR, YOUR TOOL, YOUR TRANSPARENCY TOOL.
SO I'M A COMMUNITY LEADER AND ACTIVIST IN NORTHEAST HOUSTON, AND WHERE I LIVE IS DISINVESTED, DISENFRANCHISED, AND, UM, REALLY, WE, WE DON'T HAVE A LOT OF A, A LOT OF TRANSPARENCY.
THERE'S A LACK OF TRANSPARENCY NOT ONLY TO HOW SERVICES ARE, UM, ARE SPENT OR HOW DOLLARS ARE SPENT FOR SERVICES THROUGHOUT HOUSTON.
SO I REALLY WANT TO UNDERSTAND HOW YOUR TOOL WILL DEAL WITH EQUITY, YOU KNOW, AND REALLY, UH, THE TRANSPARENCY AROUND HOW THE DOLLARS ARE SPENT, UH, AROUND HOUSTON WITH THE GIVEN SERVICES.
SO ONE OF THE THINGS THAT I'M MOST EXCITED ABOUT THIS, UM, IS THE AVAIL, THE, THE, THE OPPORTUNITY TO LOOK GEOGRAPHICALLY AND UNDERSTAND WHAT'S HAPPENING FROM A, FROM A PROJECT AND SERVICE PERSPECTIVE ACROSS THE CITY OF HOUSTON.
AND LET ME KIND OF HELP Y'ALL UNDERSTAND THIS, RIGHT? SO I'M, I'M A BIG POLITICAL BUFF, I THINK.
I IMAGINE IF YOU'RE IN THIS ROOM, YOU CARE A LITTLE BIT ABOUT CIVIC ENGAGEMENT.
AND WE'VE ALL PROBABLY SEEN ON ELECTION NIGHT, YOU KNOW, FOR THE PRESIDENTIAL ELECTION WHEN THEY'RE ON CNN AND THEY GO TO THE BIG BOARD AND YOU CAN SEE THE MAP OF GEORGIA AND THEY CLICK ON FULTON COUNTY, AND THEN IT EXPANDS, AND THEN THEY CAN SEE ALL THE DIFFERENT PRECINCTS, AND YOU CLICK ONE MORE TIME AND IT SHOWS YOU, YOU KNOW, THIS PERSON'S BEATING THAT PERSON 52 TO 48 IN THIS LITTLE NEIGHBORHOOD, RIGHT? WE SHOULD BE ABLE TO LOOK AT NEIGHBORHOODS IN THE CITY OF HOUSTON AND JUST SAY, WHAT'S HAPPENING OVER THERE, RIGHT? IN TERMS OF PUBLIC WORKS, YOU KNOW, WHAT, WHAT STREET CORNERS ARE WE, ARE WE LOOKING AT DOING ROAD PROJECTS ON WHERE ARE THE SIDEWALKS COMING IN? WHERE'S, YOU KNOW, THE DRAINAGE PROJECTS? UM, AND, AND, AND KNOW, YOU KNOW, NOT ONLY GEOGRAPHICALLY WHERE THEY'RE SITUATED, BUT WHEN DID THEY START? WHAT'S THE POINT OF THAT PROJECT? HOW LONG IS IT GONNA TAKE? WHAT CAN WE EXPECT? THE FINISH LINE, WHAT'S THE PRICE TAG GONNA BE? WHO'S DOING IT? WHO ARE THE SUBCONTRACTORS? YOU KNOW, WHO ARE THE MWBES ON THAT, RIGHT? ALL THAT INFORMATION EXISTS, IT'S JUST ABOUT MAKING IT AVAILABLE IN A WAY THAT, THAT WE CAN TRULY ACCESS.
AND SO, UM, YOU KNOW, WHAT WE'RE FORESEEING IS SOMETHING THAT OTHER CITIES HAVE, SO IT'S NOT LIKE I'M JUST MAKING THIS UP AND IT'S SOME BIG GRAND IDEA.
OTHER CITIES HAVE VERSIONS OF THIS ALREADY.
NOW WE WANNA MAKE THE BEST VERSION OF IT OF ANY CITY IN AMERICA, BUT WE COULD ALSO JUST GET UP TO KIND OF B PLUS LEVEL THAT EVERYBODY ELSE HAS.
AND, UM, AND, AND I'M EXCITED ABOUT THAT TOO.
BUT THE ASPIRATION IS, AGAIN, TO HAVE THIS TOOL NUMBER ONE, BE COMPREHENSIVE.
UM, SO TO HAVE ALL THE INFORMATION THAT YOU ARE LOOKING FOR INSTEAD OF, AND, AND BE A ONE STOP SHOP.
NUMBER TWO, BE IN AND PLAIN SPEAK AND NATURAL LANGUAGE.
SO YOU CAN TYPE IN, YOU KNOW, YOU DON'T HAVE TO KNOW THE NAME OF THE DEPARTMENT, YOU DON'T HAVE TO KNOW THE NAME OF BLAH, BLAH, BLAH, BLAH, BLAH.
YOU CAN TYPE IT IN IN A WAY THAT MAKES SENSE TO YOU, AND THE TOOL WILL KIND OF FIGURE OUT WHAT YOU MEAN AND TRY TO POINT YOU IN THE RIGHT DIRECTION, RIGHT? SO PLAIN SPEAK, NO JARGON IN NATURAL LANGUAGE.
UH, WE ALSO WANT TO HAVE INCREASED VISUALIZATION, INCLUDING GEOGRAPHIC VISUALIZATION.
SO WHETHER IT'S YOUR, YOU KNOW, YOUR, YOUR PRECINCT, YOUR NEIGHBORHOOD, YOUR, UH, YOUR CITY COUNCIL DISTRICT WHERE IT'S DIVIDED INTO THESE AREAS THAT, THAT MAKE SENSE TO YOU.
AND YOU CAN GO AND LOOK IN YOUR AREA AND THEN COMPARE IT TO THE PLACE TWO MILES DOWN THE WAY AND SAY, ARE WE GETTING KIND OF A, A FAIR SHAKE HERE? UM, AND,
[01:20:01]
UM, AND THEN FINALLY WE WANT TO ADD CONTEXT TO THAT.'CAUSE AGAIN, EVEN AS MUCH AS WE TRY TO SIMPLIFY IT, UM, SOMETIMES MS. KAY STILL GONNA HAVE A QUESTION.
AND SO WHERE, WHERE NECESSARY, YOU KNOW, WE'RE GONNA LOOK AT KIND OF WHAT ARE THE MOST TOP 20 EXPLORED AREAS? AND IN THOSE AREAS, WE'RE GONNA TRY TO ADD SOME EXPLAINERS SO THAT IF SOMEONE COMES ACROSS THIS INFORMATION, IT CAN, WE CAN TRY TO MAKE IT MAKE SENSE TO 'EM.
SO THAT'S WHAT WE'RE TRYING TO DO.
UM, YOU MAY WANNA CALL YOUR MEMBER OF CITY COUNCIL AND ASK THEM TO APPROVE, UH, YOU KNOW, THIS PIECE OF, OF THE BUDGET INCREASE.
WE WOULD, WE WOULD HIGHLY APPRECIATE THAT.
UM, BUT, UH, BUT WE'VE, WE'VE TALKED TO MOST MEMBERS OF CITY COUNCIL INDIVIDUALLY AND RECEIVE VERY STRONG, UH, SUPPORT FOR THIS.
AND SO, UH, OUR HOPE IS THAT THEY FEEL AS STRONGLY ABOUT TRANSPARENCY AS WE DO, AND THAT WE'RE ABLE TO TAKE THE LEAD ON THIS AND, AND CREATE A TOOL THAT NOT ONLY WILL GIVE YOU THIS INFORMATION, BUT IT'LL GIVE ME THE CONTROL OF THIS INFORMATION.
'CAUSE RIGHT NOW, I, I DON'T HAVE THIS ACCESS AND THE WAY THAT I WISH I DID, WHERE I CAN CLICK AND GET THE ANSWER IN FIVE SECONDS.
UM, I HAVE TO CALL UP SOME REALLY SMART PEOPLE WHO SHOULD BE DOING SOMETHING ELSE THAT'S REALLY IMPORTANT AND SAY, HEY, STOP DOING THAT AND TAKE 30 MINUTES AND DO A RESEARCH PROJECT FOR ME.
AND, AND NUMBER ONE, I SHOULDN'T HAVE TO DO THAT.
NUMBER TWO, YOU CANNOT DO THAT.
AND SO WE WANT TO GIVE THIS TO YOU, UH, AND TO MEMBERS OF CITY COUNCIL AND, AND OTHERS, UM, IN WAYS THAT ARE GONNA BRING THIS INFORMATION TO LIFE FOR US, AND IT'LL BE USEFUL IN MAKING SMART AND WISE DECISIONS, UH, GOING FORWARD.
IF CITY COUNCIL APPROVES YOUR BUDGET OR YOUR PLAN, WHAT'S THE TIMELINE? UH, WE'RE GONNA TRY TO GET IT ROLLING, YOU KNOW, THIS FISCAL YEAR.
THANK YOU SO MUCH FOR YOUR QUESTION.
AND THANKS TO EVERYBODY WHO HAS PROVIDED QUESTIONS THIS EVENING.
UM, BEFORE THE CONTROLLER CLOSES, JUST, WE WERE LIMITED ON TIME, BUT WE'RE VERY IMPRESSED AND VERY, UH, EXCITED AND ENTHUSIASTIC TO SEE ALL OF THE VERY THOUGHTFUL QUESTIONS THAT HAVE COME FROM ACROSS THE ROOM.
WHILE WE DIDN'T GET A CHANCE TO GET ALL OF THEM, WE ARE COMMITTED TO TRANSPARENCY IN THE CONTROLLER'S OFFICE, AND WE HAVE TAKEN THE QUESTIONS THAT WE RECEIVED ONLINE AND THE QUESTIONS THAT WE'VE GOTTEN FROM THE QUESTION CARDS OUT HERE, AND WE WILL MAKE SURE AS A STAFF TO RESPOND TO THEM.
UM, YOUR ENGAGEMENT IS REALLY, REALLY APPRECIATED.
UH, FOR THE FIRST TIME FOR US DOING AN EVENT LIKE THIS, UM, WE'RE VERY, UH, IMPRESSED TO SEE THE TURNOUT.
AND, UH, I'LL TURN IT BACK OVER TO YOU CONTROLLER.
I WANT TO THANK, UH, WHEELER AVENUE BAPTIST CHURCH AND DR.
MARCUS D COSBY FOR OPENING UP THE DOORS OF, OF, UH, OF, OF THE CHURCH TO, TO BE A CENTER FOR TRANSPARENCY.
UM, WE'RE, WE'RE THRILLED AND, AND, AND HONORED THAT THEY HAD US TONIGHT.
I ALSO WANT TO THANK YOU ALL AGAIN FOR HAVING ENOUGH CONCERN ABOUT YOUR CITY'S FUTURE, TO TAKE THE TIME OUTTA YOUR EATING.
I KNOW YOU GOT A LOT OF THINGS GOING ON.
YOU GOT BABIES, YOU COULD BE PUTTING ASLEEP, UM, BUT YOU CHOSE TO BE HERE, AND WE'RE GRATEFUL, UH, FOR THAT.
UH, WHAT YOU CAN SEE HERE IS HOW TO STAY IN TOUCH WITH US, UH, WHETHER IT'S FACEBOOK, INSTAGRAM, TWITTER, TIKTOK, YOU GOT MY EMAIL ADDRESS HERE.
UM, FOLLOW US ON SOCIAL MEDIA SO YOU CAN KEEP UP TO DATE WITH, WITH ALL THAT WE'RE DOING.
UM, AND, AND REACH OUT TO US AND, AND OUR COMMITMENT TO YOU IS TO BE, UH, RESPONSIVE.
WE'RE GONNA DO EVEN MORE TO GET THIS INFORMATION OUT THERE.
AND THIS WILL BE THE FIRST, UH, A REGULAR SET OF TOWN HALLS WHERE WE COME, UH, DIRECTLY TO YOU AND ANSWER THE QUESTIONS, UH, THAT YOU HAVE.
SO, AGAIN, BLESS, UH, EACH AND EVERY ONE OF Y'ALL.
AND, AND AGAIN, I, I'LL STILL BE HERE, SO I'M GONNA STEP OFF THIS STAGE, BUT IF YOU HAVE OTHER QUESTIONS, YOU JUST WANT TO CATCH UP, UH, I'LL BE RIGHT HERE.
BUT THANK Y'ALL, UH, FOR, FOR YOUR CONCERN, FOR YOUR INTEREST, AND UH, AND FOR YOUR CONTRIBUTIONS TO THE FUTURE OF OUR GREAT CITY.