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OH, HOPE THAT'S GOOD NEWS.I'M EXCITED TO HEAR FROM THE HOUSTON FIRE DEPARTMENT, AND WE ARE JOINED BY THE FIRE CHIEF TOM MUNOZ AND ALSO RACHEL MCHENRY.
WELL, WE'RE GLAD TO HAVE BOTH OF YOU.
AND I SEE THE EXECUTIVE TEAM, THANKS TO EVERYBODY AT HFD FOR KEEPING US ALL SAFE.
AND, UH, WITH THAT, THE FLOOR IS YOURS, DIRECTOR CHIEF.
AND THANK YOU COUNCIL MEMBERS FOR THE CONTINUED SUPPORT.
I ALSO WANNA TAKE THE TIME TO THANK OUR COMMAND STAFF AND A BACK WHO, AND OBVIOUSLY ROCHELLE MCHENRY HAS BEEN WORKING DILIGENTLY TO HAVE THIS PRESENTATION READY, SO, THANK YOU.
UH, WE'LL START OFF WITH THE, UM, OBVIOUSLY SLIDES ONE, TWO, AND THREE ARE GONNA BE THE COVER, THE TABLE OF CONTENTS AND THE STRATEGIC ALIGNMENT THAT WE HAVE.
THAT'S GONNA BE ON SLIDE THREE.
THIS SLIDE SHOWS OUR BUDGET ALIGNMENT WITH THE MAYOR'S PRIORITIES.
THE MAJORITY OF OUR BUDGET IS, IS 87% IS DIRECT, IS DEDICATED TO THE PUBLIC SAFETY, 10% TO GOVERNMENT THAT WORKS, AND 3% TO QUALITY OF LIFE.
A FEW KEY INITIATIVES INCLUDES RECRUITING AND RETAINING QUALIFIED FIREFIGHTERS, DELIVERING SAFETY PROGRAMS TO THE PUBLIC THAT EFFECTIVELY REDUCES IDENTIFIED COMMUNITY RISKS AND PROMOTES A SAFE NEIGHBORHOODS AND EQUIPPING FIRST RESPONDERS WITH SKILLS TO BETTER ADDRESS MENTAL HEALTH SITUATIONS.
THIS SLIDE SHOWS THE AMOUNT OF REDUCTION TO HFDS, UH, BUDGET FOR OUR CONTRIBUTION TO ELIMINATING A GAP.
ONE OF OUR SIX PROGRAMS WAS AFFECTED THE ADMINISTRATIVE SERVICES PROGRAM WITH A REDUCTION OF 253,000.
THIS REDUCTION REDUCES THE OVERTIME AVAILABLE FOR THE HFD SPECIAL EVENTS THAT WE CONTINUOUSLY WORK ON.
MOVING FORWARD, WE'LL NEED A STRATEGICALLY DEPLOY RESOURCES IN A MANNER THAT REDUCES OVERTIME EXPENDITURES WHILE STILL SUPPORTING EVENTS.
ADDITIONALLY, WHEN SUITABLE, WE ARE REQUESTING AND RECEIVING REIMBURSEMENT FROM EVENT ORGANIZERS, WHICH HELPS TO OFFSET THE OVERTIME COSTS.
WE ARE EXPECTING TO RECEIVE APPROXIMATELY 375,000 IN REIMBURSEMENT REVENUE.
SOME OF THE EVENTS, UH, THAT WE SUPPORTED INCLUDES THE FREEDOM OVER TEXAS LOCAL CONCERTS AND SPORTING EVENTS, WINGS OVER HOUSTON AND HOUSTON MARATHON, AS WELL AS THE LIGHTS AND THE HEIGHTS.
BUT I THINK IT'S IMPORTANT TO, TO KNOW THAT WE'RE ALSO GONNA BE SUPPORTING THE, UH, WORLD CUP.
NOW WE ARE WORKING WITH OBVIOUSLY FIFA HOUSTON FIRST TO START GETTING THAT REIMBURSEMENT PIECE, OR AT LEAST THE MONIES THAT WILL HELP SUPPORT THAT EVENT.
THAT CURRENTLY RIGHT NOW IS STANDING AT 39 DAYS, WHICH WILL NOT ONLY INCLUDE THE TOURNAMENTS, BUT FAN FEST EVERYTHING THAT'S GONNA BE GOING THROUGHOUT THE CITY.
SO THAT OVER TIME, AS WE'RE WORKING ON NEXT SLIDE, PLEASE.
THE VOLUNTARY MUNICIPAL RETIREMENT PAYOUT OPTION H OF D HAD 36 CIVILIANS ELIGIBLE FOR THE VOLUNTARY MUNICIPAL EMPLOYEE RETIREMENT PAYOUT OPTION.
OF THAT 36 OR 22% OF THE, OF EIGHT OF THE ELIGIBLE MEMBERS TOOK ADVANTAGE OF THE PROGRAM.
THERE WAS ONE CRITICAL BACK, UH, BACKFILL IN OUR PROFESSIONAL STANDARDS OFFICE, RESULTING IN A NET ATTRITION OF SEVEN ELIGIBLE EMPLOYEES SEPARATING FROM THE CITY WITH A REDUCTION VALUE OF 750,000.
AREAS OF THE DEPARTMENT AFFECTED BY THE PROGRAM INCLUDE HFD WAREHOUSE, THE LOGISTICS AND EMERGENCY OPERATIONS DIVISIONS, AND HFD PUBLIC AFFAIRS OFFICE.
OUR PLANS TO SERVE OUR PLANS TO PRESER, UH, SERVICE DELIVERY INCLUDE ABSORPTION OF DUTIES BY REMAINING STAFF.
ONE OF THE AREAS MOST AFFECTED, AS I MENTIONED, WAS THE HFD WAREHOUSE.
THIS IS THE, THE DIVISION RESPONSIBLE FOR SUPPLYING ALL FIRE STATIONS AND AMBULANCES WITH NEEDED EQUIPMENT AND CONSUMABLES.
THERE ARE CONCERNS THAT THE ADDITIONAL WORKLOAD ON REMAINING EMPLOYEES MAY RESULT AND DELAYS IN DELIVERING SUPPLIES IN A TIMELY MANNER.
DELAYS IN GEARED DISTRIBUTION, INVENTORY, INACCURACIES, AND POSSIBLY HIGHER CIVILIAN O CIVILIAN OVERTIME COSTS FOR THIS AREA.
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SLIDE SIX, PLEASE.PROPOSED DEPARTMENT RESTRUCTURE.
OUR DEPARTMENT RECONSTRUCTION IS UNDERWAY.
ON APRIL 30TH, HOUSTON FIRE HAD 99 CIVILIANS SUPPORTING 373,721 CLASSIFIED MEMBERS.
AND 160 CADETS NET CIVILIAN HEADCOUNT IS 91.
AFTER THE VOLUNTARY RETIREMENT PROGRAM, EVEN WITH A SMALL NUMBER OF PERSONNEL WHO ARE EXPECTING TO ACHIEVE EFFECTIVENESS WITH OUR SPAN OF CONTROL, WE'RE INCREASING THE NUMBER OF DIRECT REPORTS FOR EACH SUPERVISOR, FLATTENING OUT OUR SPAN OF CONTROL AS A DIRECT RESULT IN THE, OF THE, THIS, OF THIS DECREASE IN THE PERCENTAGE OF MANAGERS AND SUPERVISORS WITH LESS THAN FOUR DIRECT REPORTS.
FIRE IS FULLY FUNDED BY GENERAL FUNDS DOLLARS.
THE CHANGE FROM THE CURRENT FISCAL YEAR 25 BUDGET TO THE FISCAL YEAR 26, PROPOSED BUDGET IS A DECREASE OF 31.5 MILLION OR 5%.
THE DECREASE IN THE OVERALL SPENDING LEVELS IS DUE TO EXPECTED PERSONNEL SAVINGS AND CLASSIFIED OVERTIME SPENDING, WHICH OFFSETS INCREASES IN CLASSIFIED BASE PAY, INCREASES IN RESTRICTED ACCOUNTS, AND CONTINUED SUPPORT OF THE ETHAN HEALTH LOCAL GOVERNMENT CORPORATION.
THIS SLIDE IS, IS, IS A GRAPH DEPICTING OUR CHANGES IN ANNUAL EXPENDITURES.
THE 105 MILLION INCREASE FROM FISCAL YEAR 24 TO THE FISCAL YEAR 25 CURRENT BUDGET IS LARGELY DUE TO THE IMPLEMENTATION OF THE NEW COLLECTIVE BARGAINING AGREEMENT, WHICH INCLUDED A 10% ACROSS THE BOARD, PAY RAISE INCREASES IN SPECIAL AND OTHER PAYS AND EXPENDED RETIREMENT OPTIONS.
WE'RE ALREADY SEEING THE RETURN ON THE INVESTMENT IN THE DEPARTMENT IN A FORM OF INCREASING NUMBER OF APPLICANTS FOR A CADET CLASSES AND LOWER ATTRITION RATES FOR NEW HIRES.
ADDITIONALLY, WE HAVE HAD TWO REHIRE CLASSES THIS FISCAL YEAR, WITH A THIRD PLANNED NEXT MONTH WITH A PROJECTED RETURN OF 35 FORMER FIREFIGHTERS THROUGH THE DEPARTMENT.
AGAIN, THAT WAS PART OF THE SUPPORT AND WORKING CLOSELY WITH THE UNION TO RESTRUCTURE SOME OF THESE AREAS.
FORMER MEMBERS ARE RETURNING TO THE DEPARTMENT AND ARE EXCITED TO BE PART OF THE ORGANIZATION ONCE AGAIN.
AS MENTIONED, THE DECREASE IN THE CURRENT FISCAL YEAR 25 BUDGET TO THE FISCAL YEAR 26 PROPOSED IS LARGELY A DECREASE IN EXPECTED OVERTIME EXPENDITURES OFFSET AGAINST INCREASES IN CLASSIFIED PAY RESTRICTED ACCOUNTS, AND THE CONTINUED SUPPORT OF THE ETHAN HEALTH LOCAL GOVERNMENT CORP CORPORATION.
WE HAVE IMPLEMENTED SEVERAL INITIATIVES TO INCREASE CADET RETENTION HAVE BEEN SEEN AN IMPROVEMENT IN OUR CADET CLASSES, ATTRITION RATES.
THE FISCAL YEAR 24, ATTRITION AVERAGE WAS ALMOST 45% FOR THE CADET PROGRAM FOR THIS FISCAL YEAR, WE'RE ANTICIPATING AN ATTRITION RATE OF 34% OF OUR CADET CLASSES.
AND FOR CLASSES GRADUATING IN FISCAL YEAR 26, AN AVERAGE OF 12% ATTRITION RATE LOCATED IN THE APPENDIX IS A SCHEDULE THAT COMPARES THE GRADUATING NUMBER OF CADETS WITH OUR CLASSIFIED ATTRITION FROM FISCAL YEAR 22 TO 24, THE DEPARTMENT EXPECTED A NET LOSS OF FIVE AND CLASSIFIED PERSONNEL OR FISCAL, FISCAL YEAR 25 WE'RE ANTICIPATING A NET INCREASE OF 175 CLASSIFIED PERSONNEL FOR AND FOR FISCAL YEAR 26, AN ESTIMATED NET INCREASE OF 200 IN CLASSIFIED PERSONNEL.
THIS MUCH NEEDED INFUSIONS AND OUR CLASSIFIED HEADCOUNT SHOULD REDUCE OUR RELIANCE ON STAFFING, ON STAFFING, AND ON OVERTIME.
PERSONNEL VERSUS NON-PERSONNEL.
THIS SLIDE SHOW SHOWS A BREAKDOWN BY THE PERCENTAGES OF OUR PERSONNEL VERSUS NON PERSONNEL EXPENDITURES.
AND THEN FURTHER BREAKS DOWN THE NON-PERSONAL EXPENDITURES INTO SUPPLIES, SERVICES, AND RESTRICTED ACCOUNTS OF HFDS $659 MILLION FISCAL YEAR 26.
PROPOSED BUDGET, 88% OR 57.6 MILLION IS COMMITTED TO PERSONAL EXPENDITURES WITH 98% OF THE PERSONNEL BUDGET DEDICATED TO CLASSIFIED PERSONNEL AND 2% TO CIVILIAN PERSONNEL EXPENDITURES.
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THE REMAINING OF OUR OTHER 12% OR 81.4 MILLION OF OUR BUDGET IS COMPRISED OF SUPPLIES, SERVICES, AND RESTRICTED ACCOUNTS.RESTRICTED ACCOUNT SPENDING IS 50.2 MILLION OR 7% OF OUR TOTAL BUDGET.
SPENDING ON SUPPLIES IS 2% OR 10.1 MILLION AND SPENDING ON SERVICES IS 3% OR 21 MILLION OF OUR TOTAL BUDGET.
EXPENDITURES BY PROGRAM FOR FISCAL YEAR 2026 HFD HAS SIX PROGRAMS AND AN OUTCOME BASE BUDGETING STRUCTURE.
THESE PROGRAMS ARE EMERGENCY RESPONSE AND RESCUE, COMMUNITY, FIRE PREVENTION AND RISK REDUCTION, FIREFIGHTER HEALTH AND SAFETY EXECUTIVE SERVICES, ADMINISTRATIVE SERVICES AND DEBT SERVICES AND INTERFUND TRANSFER.
NEXT SLIDE, PLEASE LET ME, I'M SORRY.
OUR ADMINISTRATIVE PROGRAM IS INCREASING BY APPROXIMATELY 684 MILLION OR 1%.
THIS PROGRAM, EXCUSE ME, 684,000 OR 1%.
THIS PROGRAM CONTAINS ALL INNER FUND CHARGEBACK ACCOUNTS FOR FINANCE, FLEET, HR, AND HITS, AS WELL AS THE SALARIES AND FRENCH BENEFITS FOR CLASSIFIED AND CIVILIAN PERSONNEL, AND INVOLVED ADMINISTRATIVE SERVICES TO INCLUDE GRANTS MANAGEMENT, CONTRACTS, MANAGEMENT MANAGEMENT IN OUR ACCREDITATION TEAM.
THE 684,000 IS A NET, A NET OF RESTRICTED ACCOUNT INCREASES OF 2.6 MILLION CLASSIFIED BASE INFRINGING BENEFITS INCREASES OF 207,000 OFFSETS BY DECREASES OF 697,000 AND COLLECTION SERVICES, A DECREASE OF 551,000 IN CLASSIFIED OVERTIME AND 976,000 DECREASE IN OTHER OTHER INTER FUNDS SERVICES.
ANYTHING OF US IN OUR COMMUNITY PREVENTION, UH, FIRE AND RISK PROGRAM REDUCTION PROGRAM.
AND THE OVERALL INCREASE, UH, DECREASE IS APPROXIMATELY 1.1 MILLION OR 3%, UH, 3%.
THE LARGEST DECREASE IN IN THIS PROGRAM IS ANTICIPATED SAVINGS OF 1.4 MILLION AND CLASSIFIED, UH, OVERTIME OFFSETS AGAINST INCREASES IN CIVILIAN AND CLASSIFIED, UH, AND BASE PAY AND RELATED, UH, FRENCH BENEFITS.
THE GUESS THE EXECUTIVE SERVICE PROGRAM IS DECREASING BY 545,000 OR 7%.
THIS, UH, PROGRAM INCLUDES SALARIES AND FRINGE BENEFITS OF ALL H OF D EXECUTIVE STAFF PERSONNEL IN THE, IN THE PROFESSIONAL STANDARDS OFFICE AND PUBLIC INFORMATION.
THE DECREASE IN THIS PROGRAM IS ATTRIBUTED TO A DECREASE IN CLASSIFIED OVERTIME OF 262,000 IN SAVINGS EXPENDITURES FROM THE VOLUNTARY MUNICIPAL RETIREMENT PROGRAM FOR CIVILIAN BASE AND TERMINATION PAY NOT EXPECTED IN FISCAL YEAR 26 FOR FIREFIGHTER HEALTH AND SAFETY.
THE MAJORITY OF THE TOTAL DECREASE IS RELATED TO CIVILIAN OVERTIME SAVINGS UNDER THE VOLUNTARY RETIREMENT PROGRAM FOR FISCAL YEAR 25 EXPENDITURES NOT EXPECTED IN FISCAL YEAR 26, AND EXPENDITURES UNDER THE DEBT SERVICES AND TRANSFER FUNDS ARE EXPECTED DIRECTLY TO RELATED TO CONTINUED FUNDING AND SUPPORT FOR THE ETHAN PROGRAM.
SO THE NEXT SLIDES, UM, WILL BE COVERED COVERING, UM, 11 THROUGH 19 HPD HFDS PERFORMANCE MEASURES.
SLIDES 11 AND 12 WILL BE COVERING EMERGENCY RESPONSE AND RESCUE PROGRAMS, WHICH ALIGNS WITH THE MAYOR'S PUBLIC SAFETY PRIORITY.
THERE ARE 10 PERFORMANCE MEASURES FOR THIS PROGRAM, AND MOST, MOSTLY DEALING WITH OUR TURNOUT TIMES, RESPONSE TIMES AND INCIDENT COUNTS.
WE'RE EXPECTING TO HIT MORE THAN 300,000 EMS INCIDENTS THIS YEAR.
HOWEVER, LOOKING AT CLOSER NUMBERS, WE'RE LOOKING AT MORE AT 400,000 AND NOT, LET'S NOT FORGET OUR, UM, OUR WORLD CUP THAT'S COMING UP, SO THAT'S GONNA BE 11 AND 12.
SOME OF THE, WHAT YOU DO SEE IS THE PERFORMANCE NAMES, ALONG WITH THE TARGET CONTEXT THAT WE'RE LOOKING AT, WORKING CLOSELY IN COLLABORATION WITH ALL OUR TEAM MEMBERS TO LOOK AT THOSE TARGETS AND WORK DILIGENTLY TO IMPROVE THOSE OR INCREASE THOSE.
WE LOOK AT, UH, SLIDE 12 WE ARE LOOKING AT THAT GIVES YOU THE NUMBER OF, UM, TOTAL RUNS, INCIDENTS, FIRE, AND EMS. SO THAT'S JUST SOME OF THE HIGHLIGHTS THAT WE'VE TARGETED THERE.
SO MOVING ON TO SLIDE 13, 14, AND 15.
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PREVENTION AND RE RISK REDUCTION PROGRAM HAS SEVEN PERFORMANCE MEASURES.KEY FOCUSES OF THIS PROGRAM ARE PUBLIC EDUCATION, FIRE AND LIFE SAFETY ENFORCEMENT AND COMPLIANCE AND QUALITY INVESTIGATIONS TO DETERMINE THE ORIGINS AND CAUSES OF FIRE IF NEEDED, THE APPREHENSION OF PERSONS RESPONSIBLE WHEN A, WHEN A CRIME HAS OCCURRED.
SO IF YOU LOOK AT SOME OF THE PERFORMANCE MEASURES THAT WE HAVE, THESE ALSO FALL UNDER THE, UM, FIRE INVESTIGATION, PUBLIC EDUCATION AND COMMUNITY OUTREACH, WHICH IS SO IMPORTANT TO US NOW.
WE'RE ALSO LOOKING AT JUVENILE FIRE STOP, UH, STOPPERS THAT WE HAVE BEEN LOOKING AT AND WORKING WITH OTHER COMMUNITY CENTERS THROUGHOUT THE CITY.
UNDER THE LEADERSHIP OF CHIEF LON.
WE'RE WORKING, UM, TO IDENTIFY SOME OF THOSE AREAS THAT WE WANNA ALSO MEET WITH YOU ALL, UH, ONCE WE START TO, UH, SEE WHAT AREAS WE COULD TARGET TO HELP WITH THE JUVENILE FIRE STOPPERS PROGRAM.
SOME OF THE AREAS THAT WE LOOK AT IS OBVIOUSLY THE PERFORMANCE MEASURES ON 13, WHICH IS THE INSPECTIONS AND ARSON CLEARANCE RATES AND JUVENILE STOPPERS REFERRALS.
UM, ALSO HIT SOME OF THE PUBLIC EDUCATION SESSIONS THAT WE HAVE AND SOME OTHER COMMUNITY OUTREACHES THAT WE CAN, THAT WE ARE GOING TO BE WORKING ON AND CONTINUING TO WORK ON.
UH, AND THROUGH THE HELP OF SOCIAL MEDIA, THAT'S REALLY HELPING ALONG WITH BRENT TAYLOR AND HIS COMMUNI AS NOW AS THE DIRECTOR OF COMMUNICATION, WE'RE ABLE TO TARGET MORE GROUPS.
15 IS JUST THE OVERFLOW OF THE PUBLIC SERVICE ANNOUNCEMENT CAMPAIGNS THAT WE HAVE, ALONG WITH THE NUMBER OF SMOKE ALARMS INSTALLED.
NOW WE ARE WORKING WITH OTHER, UH, AGENCIES, UH, WITH DIRECTOR ANGEL POE WITH, UM, LOOKING AT THE MAYOR'S OFFICE OF PEOPLE WITH DISABILITIES AND ALSO WORKING WITH OTHER ORGANIZATIONS THROUGHOUT THE CITY TO INCREASES, UH, THIS, THIS PROCESS OF GETTING SMOKE ALARMS FOR PEOPLE AND THOSE ELDERLY AND THOSE THAT ARE IN NEED.
THE FIREFIGHTER HEALTH AND SAFETY PROGRAM PROVIDES OVERALL WE WELLNESS FOR AND FITNESS FOR OUR MEMBERS.
THE HFD TEAM OF TWO STAFF PSYCHOLOGISTS FALL UNDER THIS PROGRAM AND ARE EXPECTED TO MEET WITH OVER 300 FIREFIGHTERS.
THIS FISCAL YEAR ALSO INCLUDED OUR MEASURES, UH, FOR THE UPKEEP AND MAINTENANCE OF EQUIPMENT USED BY THE FIREFIGHTERS SUCH AS LADDERS AND FIRE HOSE.
PART OF THIS PROGRAM, TOO, IS JUST SO THAT MENTAL HEALTH IS SO IMPORTANT TO US.
AS WE'RE WORKING, WE'RE REBUILDING, UM, THE CRITICAL INCIDENT STRESS MANAGEMENT TEAM THAT HAVE BEEN DORMANT FOR A WHILE.
SO WE'RE WORKING WITH STAFF PSYCHOLOGISTS.
WE'VE ALSO BEEN IN COLLABORATION AND TALKING TO CHIEF NO IDEAS AND UTILIZE SOME OF THE, THE SYSTEMS, THE PEER SUPPORT SYSTEM THAT THEY HAVE THAT WE'RE MODELING TO ENSURE THAT OUR MEMBERS HAVE THAT MENTAL HEALTH SUPPORT THAT'S SO IMPORTANT TO US AND TO THEM DURING TIMES OF CRISIS.
PAGE 17, HFD EXECUTIVE SERVICES PROG, UH, PROGRAM ALLIANCE WITH THE MAYOR'S PUBLIC SAFETY PRIORITY.
PERFORMANCE MEASURES UNDER THIS PROGRAM INCLUDE THE NUMBER OF CADETS THAT START TRAINING IN OUR ANNUAL CLASSIFIED ATTRITION.
WE NORMALLY LOSE ABOUT 170 CLASSIFIED MEMBERS EACH YEAR IN THE, AND IN THE PAST YEARS, NUMBER OF NEW HIRES HAVE NOT KEPT UP WITH THE PACE OF ATTRITION.
AS MENTIONED, WE'RE ON TRACK THIS FISCAL YEAR, NEXT FISCAL YEAR TO REVERSE THE TREND IN OUR AND INCREASE OUR DEPARTMENT HEADCOUNT.
THE ADMINISTRATIVE PROGRAM INCLUDES THE COST FOR ALL CENTRALIZED DEPARTMENT FUNCTIONS THAT WE'VE TALKED ABOUT AS FAR AS THE CLASSIFIED AND ADMINISTRATIVE SUPPORT THAT'S MUCH NEEDED.
NEXT SLIDE, H OF D DEBT SERVICES AND INTER FUND TRANSFERS INCLUDES CONTINUING FUNDING FOR THE ETHAN HEALTH PROGRAM.
SLIDE 20 HFD REVENUE HIGHLIGHTS.
AMBULANCE FEES ARE APPROXIMATELY NINE 59% OF THE FISCAL 26 REVENUE BUDGET.
PASSAGE OF SENATE BILL 24 76 AT THE STATE LEVEL HAS FAVORABLY IMPACTED OUR REVENUE COLLECTIONS.
AS PART OF THE, UH, PREPARATION FOR THE JANUARY 1ST, 2024, GO LIVE OF SENATE BILL 24 76, TEXAS-BASED EMS PROVIDERS SUBMITTED THEIR FEE SCHEDULE TO THE TEXAS DEPARTMENT OF INSURANCE PORTAL.
WITHOUT A FEE SCHEDULE, COMMERCIAL INSURANCE COMPANIES WILL PAY THE LESSER OF THE CHARGE FEES OF 325% OF MEDICAL ALLOWABLE RATES.
THIS SLIDE IS A GRAPH DEPICTING OUR CHANGES AND ANNUAL REVENUES.
THE DECREASE FROM THE FISCAL YEAR 24, ACTUAL
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TO THE FISCAL YEAR 25 ESTIMATE WERE DIRECTLY RELATED TO DECREASES IN THE AMOUNT RECEIVED FOR THE AMBULANCE SUPPLEMENT SUPPLEMENTAL PAYMENT PROGRAM AGAINST INCREASES IN AMBULANCE FEES, REVENUES, THE LARGEST DRIVERS IN THE CHANGE IN THE FISCAL YEAR 25 ESTIMATE TO THE FISCAL YEAR 26.PROPOSED BUDGET IS A $13.3 MILLION DECREASE IN THE AMOUNT EXPECTED FOR AMBULANCE REVENUE BASED ON THE POTENTIAL EX EXPIRATION OF SENATE BILL 24 76.
SLIDE 22 SHOWS, UH, REVENUE BY PROGRAM.
OVERALL, WE'RE SHOWING AN EXPECTED DECREASE IN REVENUES BY APPROXIMATELY 12.8 MILLION OR 10%.
AS MENTIONED, THE LARGEST REVENUE DECREASE IS 13.3 MILLION RELATED TO EXPIRATION OF SENATE BILL 24 76.
THAT WILL HAVE A NEGATIVE IMPACT ON THE AMOUNT COLLECTED FROM COMMERCIAL INSURANCE OFFSET AGAINST INCREASES IN THE AMOUNT BILL THE HOUSTON AIRPORT SYSTEMS FOR AIRPORT FIREFIGHTING SERVICES.
THIS CONCLUDES MY PRESENTATION.
THANK YOU CHIEF VICE MAYOR PRO TEM PECK.
AND THANK YOU CHIEF, AND THANK YOU FOR EVERYTHING THAT YOU DO.
AND TO THE COMMAND STAFF AND ALL THE FIREFIGHTERS.
UM, SO CHIEF, WE'VE HAD MANY CONVERSATIONS ABOUT THE AFTER HOURS CLUBS AND THE LATE NIGHT CLUBS, AND YOU KNOW, HOW WE'RE WORKING ON THAT.
UM, AS YOU HAVE BEEN LOOKING AT THAT ISSUE, UM, WITH FORMING TASK FORCES AND REARRANGING THE FIRE MARSHAL'S OFFICE TO HAVE MORE SUPPORT THERE, IS THERE ANYTHING FINANCIALLY IN THIS NEXT FISCAL YEAR BUDGET THAT WE NEED TO BE AWARE OF WHEN IT COMES TO WORKING ON THOSE ITEMS? WELL, OBVIOUSLY, YOU KNOW, AS MENTIONED BEFORE, WORKING WITH CHIEF DIAZ AND HIS TEAMS AND OUR TEAMS AND OUR INSPECTIONS INSPECTORS, THAT'S ALSO GONNA BE AN INCREASE IN, OBVIOUSLY IN OVERTIME.
NOW, WHEN WE'RE LOOKING AT SOME OF THE AREAS WE WOULD LIKE TO INCREASE IS OBVIOUSLY THE NUMBER OF INSPECTORS TO ELIMINATE THAT PROCESS.
AS WE MENTIONED, YOU AND I HAVE TALKED TO COUNCIL MEMBER ON THE DEVELOPMENT OF TASK FORCE, WHICH WE ALREADY DO.
NOW, LOOKING AT THAT, THAT OPPORTUNITY IS, AS CHIEF DIAZ HAS MENTIONED, AND WE'VE WORKED TOGETHER ON IT, WE'RE LOOKING AT, YOU KNOW, THE PEAK DAYS OF THE WEEK, WHICH ARE GONNA BE YOUR FRIDAYS AND SATURDAYS, RIGHT? POSSIBLY THURSDAYS.
NOW, THE REASON THERE IS ALSO ANOTHER CONCERN FOR THAT IS BECAUSE, AGAIN, THE SAFETY OF OF RESIDENTS AND THOSE AROUND IN THOSE AREAS AND THE COMFORT, AND AGAIN, I KEEP ON GOING TO WORLD CUP, WHAT'S TO BE EXPECTED.
WE'VE HAD A LOT OF CONCERNS ON THAT.
UH, CHIEF, UH, CHIEF SPAN AND, AND CHIEF GALVAN NOW HAVE BEEN WORKING ON WHAT THAT'S GONNA LOOK LIKE.
BUT JEFF, FOR US, WOULD BE THE NUMBER OF OVERTIMES THAT WE'RE WORKING AT TO SEE WHAT THAT'S GONNA LOOK LIKE AND WORKING, OBVIOUSLY TO UTILIZE OTHER RESOURCES AND OTHER MEMBERS TO ELIMINATE SOME OF THAT OVERTIME IF POSSIBLE.
TALKING ABOUT OVERTIME, CHIEF, I WANTED TO ASK YOU ON, IN LOOKING AT THE DATA, IT LOOKS LIKE AN EMERGENCY RESPONSE.
THERE'S A BIG DECREASE IN BUDGETED OVERTIME FROM $78.5 MILLION AS THE FY 25 ESTIMATE TO 39.2 MILLION AS OUR PROPOSED.
WHAT, WHAT SLIDE ARE YOU LOOKING AT COUNCIL? IT'S, IT'S NOT REALLY ON A SLIDE.
YOU CAN PROBABLY ADDRESS IT, ROCHELLE, UM, A DECREASE IN THE, UH, IN THE AMOUNT OF BUDGETED OVERTIME.
UH, BUT, AND THEN THERE'S A, A SLIGHT, A MUCH SMALLER DE A $2 MILLION DECREASE IN PREVENTION.
BUT THE MAIN, THE BULK OF IT'S THE BULK OF IT IN EMERGENCY RESPONSE.
SO, AS CHIEF MENTIONED, WE ARE PLANNING ON INCREASING HEAD COUNT.
WE ARE DEFINITELY EXPECTING, UM, MORE CADETS THAN ATTRITION.
UM, NEXT FISCAL YEAR, UM, INCREASE IN HEAD COUNT OF ABOUT 200.
SO WE DID FEEL CONFIDENT IN DECREASING THE AMOUNT OF OVERTIME THAT WE WOULD NEED.
UM, FOR MINIMUM, MINIMUM STAFFING.
SO THAT'S, THAT'S WITH THE, WITH THE ADDITIONAL COUNCIL MEMBER THAT'S HEAD COUNTS.
'CAUSE THAT'S ALMOST A $40 MILLION.
WELL, AND THE OTHER THING TOO, COUNCIL MEMBER THAT AS WE MENTIONED, RIGHT, SO THERE'S A LOT OF FACTORS THAT GO INTO IT AND WHY WE'RE LOOKING AT THIS ONE.
WE'RE UTILIZING THE DATA THAT WE'RE GETTING THE DASHBOARDS OF THAT, THAT'S USING THE TECHNOLOGY THAT'S THERE, THAT ALLOWS US TO TARGET SOME AREAS AND WHAT THAT'S GONNA LOOK LIKE.
TWO, YOU KNOW, WE NOW HAVE A COMMAND STAFF THAT IS WORKING CLOSELY MONITORING MONTHLY OF WHAT THAT'S GONNA BE, WHAT THAT'S GONNA LOOK LIKE.
THREE, AS ROCHELLE JUST MENTIONED, YOU KNOW, COUNCIL MEMBERS.
WE, BY, WITHIN A YEAR, WE'RE ANTICIPATING APPROXIMATELY 650 EXTRA ADDITIONS TO THE HOUSTON FIRE DEPARTMENT.
AND AGAIN, THAT'S IN COLLABORATION, THANKS TO YOUR SUPPORT, THE MAYOR'S SUPPORT WORKING TOGETHER WITH THE UNION.
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DO WE INCREASE THAT OUR MEMBERS? SO PEOPLE ARE COMING BACK.THAT IS DEFINITELY GONNA BE HELPING A LOT.
THE OTHER THING TOO IS WE'RE STARTING TO SEE, OBVIOUSLY AS PEOPLE NOW, THE MORALE'S INCREASING.
WE'RE SEEING PEOPLE COMING TO WORK AND NOT UTILIZING THAT SICK TIME OR WHATEVER TIME THEY MIGHT HAVE.
AND TO GIVE YOU AN EXAMPLE, HISTORICALLY, THE MIDDLE OF THE WEEK PRIOR TO THE ADMINISTRATION GETTING ON BOARD, WE WERE AVERAGING APPROXIMATELY 11 TO 12 UNITS OUT OF SERVICE.
NOW IT'S COMMON FOR US TO HAVE ZERO THROUGHOUT THE WEEK ON WEEKENDS.
NOW, YOU KNOW, LIKE EVERY WEEKEND YOU, YOU DO HAVE GRADUATION WEEKEND, YOU HAVE, YOU KNOW, THOSE SPECIAL WEEKENDS AND OBVIOUSLY THE SUMMER MONTHS.
BUT WE FEEL COMFORTABLE WITH THE QUALITY THAT WE'RE SENDING OUT, THE NUMBER THAT WE'RE DOING NOW WITH THE INPUT, YOU KNOW, WE'VE, UH, HAVE, UM, EXECUTIVE CHIEF, YOU KNOW, LOU ELLEN ALONG WITH, YOU KNOW, THE REST OF THE COMMAND STAFF LOOKING AT THE DATABASES, DASHBOARDS, YOU KNOW, HOW WE'RE LOOKING AT THAT.
BUT I, AGAIN, NEXT IN JUNE, AND I INVITE YOU ALL, WE'LL BE THE LARGEST GRADUATING HIV CLASS IN OUR HISTORY, APPROXIMATELY 120.
THAT'S, THAT'S ALL GREAT NEWS.
AND, AND, AND WE LIKE TO SEE THIS, THE OVERTIME COST GOING DOWN.
AND, BUT THAT IS A SIGNIFICANT BUDGET ITEM IN THIS, IN THIS BUDGET THAT THERE'S ABOUT A $40 MILLION INCREASE, I MEAN, DECREASE IN OVERTIME.
AND IT'S GREAT NEWS THAT WE'RE HAVING A LOT MORE FIREFIGHTERS COME IN TO, TO FILL THE GAP.
SO WE DON'T NEED SO MUCH OVERTIME.
COUNCIL MEMBER CAYMAN, THANK YOU CHAIR.
UH, CHIEF, MY APPRECIATION TO ALL OF THE MEN AND WOMEN, UH, IN THE FOURTH IN THE FORCE.
UH, I, YOU KNOW, THE IMPROVEMENT IN HEALTH SCREENINGS AND HEALTH BENEFITS, EVERYTHING THAT WE'RE BRINGING TO THE DEPARTMENT, UM, I APPRECIATE, AND I KNOW MEMBERS APPRECIATE IN ADDITION TO THE IMPROVEMENTS IN THE FIRE STATIONS.
UM, I'VE BEEN ASKING EVERY DEPARTMENT THIS, DO YOU HAVE A ESTIMATED AMOUNT OF WHAT YOUR DEPARTMENT RELIES ON IN TERMS OF FEDERAL, UH, GRANTS AND FUNDING? THAT'S A GREAT QUESTION.
YOU KNOW, RIGHT NOW WE LOOKED AND, YOU KNOW, WE SAW, OBVIOUSLY WE HAVE THE, THE, UM, FIREFIGHTERS GRANT ASSISTANCE GRANT THAT WE'RE WORKING ON.
UH, AND FROM MY ESTIMATES, YOU KNOW, WE'VE BEEN TOLD THAT WE'RE NOT REALLY GONNA SEE THAT MUCH OF AN IMPACT.
HOWEVER, THAT DOESN'T MEAN THAT SOME OTHER GRANTS, THE UI GRANTS, UH, A F AND G, WHICH IS SYSTEM FIVE, MIGHT BE, MIGHT BE GONE.
SO WE'RE LOOKING AT THOSE, THERE'S BIG AREAS THAT WE, THAT WE REALLY CONCENTRATE ON WITH THAT.
SO I DON'T KNOW IF HAW HAS ANY MORE TO THAT, BUT RIGHT NOW WE DON'T, IT'D BE HELPFUL TO HAVE AN ESTIMATE OF HOW MUCH IN TERMS OF DOLLARS.
UM, AND THEN AGAIN, IF WE AREN'T ABLE TO GET THOSE DOLLARS, ARE WE ACCOUNTING FOR THAT? DO WE LOSE THOSE PROGRAMS? WHAT HAPPENS? YES.
UM, ADDITIONALLY, LOOK AS FIRST RESPONDERS, AGAIN, A QUESTION I'M ASKING DEPARTMENTS, UM, DURING A DISASTER, THERE ARE ADDITIONAL EXPENDITURES AND COSTS AND SOME OF THOSE ARE REIMBURSED.
UH, BUT I WOULD LIKE AN ESTIMATE OF HOW MUCH IN THE PAST FEW YEARS, AGAIN, WE'LL SUBMIT THAT WE HAVE SPENT WITHIN THE DEPARTMENT AND RESPONDING TO DISASTERS THAT'S ABOVE AND BEYOND, AND HOW MUCH HAS BEEN REIMBURSABLE.
AGAIN, NOW WE'RE SEEING THAT THE FEDERAL GOVERNMENT IS NOT NECESSARILY DECLARING THINGS A FEDERALLY DECLARED NATIONAL DISASTER, WHICH MEANS WE DON'T QUALIFY FOR REIMBURSEMENT.
SO MY QUESTION IS, HOW ARE WE, HAVE WE ACCOUNTED FOR ANY OF THAT COST AND BAKE THAT INTO THIS FISCAL YEAR'S BUDGET? SHOULD WE NOT BE REIMBURSED BECAUSE THOSE STORMS ARE COMING, THOSE, UH, WINTER STORMS ARE COMING, IS THAT ACCOUNTED FOR THIS YEAR? AND THAT'S ONE OF THE AREAS THAT WE LOOKED AT, YOU KNOW, SO OBVIOUSLY WHAT MODEL TO USE, RIGHT? UM, WITHOUT KNOWING WHAT THE IMPACT'S GONNA BE.
CASE IN POINT, ONE OF THE GOOD GAUGES WOULD BE WHAT HAPPENED WITH THIS LAST FREEZE.
AND JUST IN THE OVERTIME ALONE, WE WERE LOOKING AT APPROXIMATELY 3.8 MILLION.
RIGHT? BUT THAT WASN'T REIMBURSABLE.
WAS NOT REIMBURSABLE, IT WAS NOT, WAS NOT REIMBURSABLE.
AND YOU'RE RIGHT, WE ARE LOOKING AT WHAT THE NEW FEDERAL GOVERNMENT SYSTEM'S GONNA LOOK LIKE.
OBVIOUSLY THERE'S STILL A LOT OF FACTORS THAT WE HAVE TO IDENTIFY WITH THAT, BUT I DON'T KNOW IF ROCHELLE HAS SOME MORE THAT YOU COULD ADD TO THAT, ROCHELLE? SO, UM, AS THE PUBLIC PUBLIC SAFETY DEPARTMENT, UM, WE DO OBVIOUSLY RESPOND WHEN NATURAL DISASTERS, EMERGENCIES, ET CETERA.
UM, WE DO NOT HOWEVER, BUDGET FOR THOSE.
UM, WE BUILD OUR BUDGET BASED ON OUR HEAD COUNT MINIMUM STAFFING.
UM, AND THEN IN THE EVENT OF A NATURAL DISASTER OR, UM, AN EMERGENCY OUTSIDE OF OUR USUAL BUDGETING PROCESS, WE WILL CALCULATE ALL OF THOSE COSTS, SEE WHAT THOSE EXPENDITURES ARE.
UM, IF THEY ARE NOT REIMBURSABLE, THEN WE JUST CLOSELY MONITOR OUR OVERTIME SPENDING THROUGHOUT THE REST OF THE YEAR TO SEE IF WE CAN RECOUP ANY OF THAT.
SO THAT'S ONE OF MY BIGGEST CONCERNS RIGHT NOW.
[00:30:01]
IS AGAIN, THAT NUMBER'S GROWING AND WE'RE NOT AS A CITY ACCOUNTING FOR THAT.
AGAIN, THAT'S NOT A REFLECTION SPECIFICALLY OF THIS DEPARTMENT.
AND WE NEED YOU TO RESPOND, BUT IF WE'RE NOT INCLUDING THAT AMOUNT, WE'RE NOT ABLE TO PROJECT AS ACCURATELY AS POSSIBLE.
DOES ANY OF THAT FUNDING, DO, YOU KNOW, COME OUTTA THE BUDGET STABILIZATION FUND? SO FIRE WAS PROJECTED TO BE OVER BUDGET THIS YEAR.
UM, AND I'M NOT SURE WHERE THE ADDITIONAL SOURCE OF FUNDING CAME FROM, BUT, UM, THE FINANCE DEPARTMENT WAS ABLE TO COVER THE OVERAGE.
UH, DO YOU KNOW HOW MUCH IT WAS OVER? UM, I BELIEVE IT WAS A LITTLE OVER 50 MILLION.
AND THANK YOU CHIEF FOR YOUR PRESENTATION.
APPRECIATE YOUR WHOLE DEPARTMENT AND EVERYTHING THEY DO TO KEEP US ALL SAFE.
I HAD A QUESTION ABOUT, UM, BUDGET ITEM LISTED IN THE PRESENTATION.
DOES THAT MEAN THAT WE WE HOPE TO PURCHASE FIVE AMBULANCES IN THE NEXT YEAR? NO, SIR.
WHAT THAT MEANS IS WE DO HAVE OUR HIGH TIMES RIGHT.
SO WHAT, WHAT WE DO TO ABSORB, TO ENSURE, FIRST OF ALL, THAT WE HAVE THE COVERAGE NEEDED FOR THE INCREASED NUMBER OF RUNS TO BE ABLE TO SUPPORT THE, THE COMMUNITY WITH THOSE EXTRA AMBULANCES.
AND I'M GLAD YOU MENTIONED THAT BECAUSE, UM, WE DID HAVE THE FACET REPORT, WHICH IS A REPORT THAT GAVE THE ANALYSIS OF THE NEEDS OF THE FIRE DEPARTMENT BACK IN 2017.
AND ACTUALLY, YOU KNOW, THERE, THAT REPORT SAID THAT WE PROBABLY NEEDED 40 PEAK TIME AMBULANCES, BUT WE'RE LOOKING AT THAT.
BUT THOSE, SIR ARE U UNITS THAT WE'RE, UH, WE HAVE TO FILL IN AN EVENINGS TO INCREASE THAT NUMBER OF, OF, OF TRANSPORT UNITS THAT IS NEEDED DURING THOSE PEAK TIMES, PER SE.
AND, UM, ARE YOU ASKING TO PURCHASE AMBULANCES THIS YEAR? YES SIR.
AND WHAT, WHAT DOES EACH ONE OF 'EM, ONE OF 'EM COST? WELL, I DO HAVE SHE FRITZ BEHIND ME, BUT WE'RE LOOKING AT APPROXIMATELY 450,000 FROM AVERAGE ON THAT.
IS THAT CORRECT CHIEF? THEY WERE RIGHT AT 345,000.
'CAUSE OF THE TARIFFS THAT WE'RE SEEING.
AND THAT WOULD BE PART OF THE CAPITAL BUDGET.
AND, AND ALSO, AND I'VE GOT SOME NUMBERS THAT I'VE ASKED IN THE PAST ABOUT, IT'S NOT JUST THE AMBULANCE THAT YOU'RE TALKING ABOUT, IT'S ALSO THE STAFFING OF THE AMBULANCE.
SO, SO, UM, WE HEARD FROM FLEET MANAGEMENT, UH, SHORTAGE OF POLICE CARS BEING MADE IN, IN, UH, IN THE US.
UM, IS THERE A SHORTAGE OF, UH, FIRE TRUCKS AND, UH, AMBULANCES AS WELL? OR NOT? WELL, TALKING TO CHIEF FRITZ, YOU KNOW, ON THE AVERAGE, WE'RE LOOKING AT ABOUT A TWO YEAR RETURN ONCE WE PLACE THE, UM, WE'D MAKE THE PURCHASE.
UM, IT HAS BEEN A FRUSTRATING PROCESS AND I THINK NOW CHIEF READS THROUGH IS DILIGENT WORK AND, AND WORKING WITH THESE INDIVIDUALS HERE LOOK LIKE THE UNIT WE CAN GET WITH AN 18 MONTHS, A TRANSPORT UNIT, IF I'M NOT MISTAKEN.
IT'S APPROXIMATELY TWO TO 2.5 YEARS TO GET A PUMPER OR A, A HEAVY, UH, OR A LADDER TRUCK.
Y'ALL PRESENTATION FROM BOTH OF YOU.
LET ME COMMEND THE EFFORTS AND THE WORK THAT YOU'VE DONE UNDER THE ADMINISTRATION ATTORNEY, THE FIRE DEPARTMENT AROUND, AND WE REALLY COUNT ON YOU GUYS FOR A LOT, UM, TO, YOU KNOW, I USED TO HEAR SO MANY PEOPLE TALK ABOUT THE FIRE DEPARTMENT VERSUS THE POLICE DEPARTMENT.
AND, AND MOSTLY, UM, TO BE HONEST, MOST OF THE SIRENS I HEAR ARE MOST OF THE PEOPLE I GENERALLY SEE RUNNING IS FIRE TRUCKS AND, AND, AND EMS TRUCKS.
SO LET ME COMMEND THAT AND, AND TO SEE THE TURNAROUND IN, IN FIREFIGHTERS COMING BACK FOR THOSE WHO ATTEND THE GRADUATIONS.
IT'S, IT'S VERY IMPRESSIVE TO SEE THAT.
AND I, I MUST COMMEND YOU AND THE FIRE DEPARTMENT AND ALL FOR DOING THAT.
UM, ALONG WITH MY COLLEAGUES, I WANTED TO ASK ABOUT THE EQUIPMENT.
'CAUSE YOU KNOW, WE ALWAYS TALK ABOUT THE COST OF EQUIPMENT.
WE MORE THAN DOUBLED THAT GOAL GOING INTO FY 26.
ACTUALLY, I WASN'T REFERRING TO THE GOALS I WAS REFERRING TO.
THE ACTUAL FISCAL 24 WAS 3,000,025.
WHAT'RE SAYING, I SEE WHAT YOU'RE SAYING.
SO AGAIN, YOU KNOW, WE ARE RAISING OUR GOALS YEAR BY YEAR.
UM, IN FY 24, WE DRAMATICALLY EXCEEDED THE GOAL.
[00:35:01]
FY 2025.WE ARE PLANNING TO HIT THAT GOAL AGAIN BY A BIG MARGIN MORE THAN DOUBLING THE ACTUAL TARGET.
BUT YES, YOU ARE CORRECT THAT OUR ESTIMATES SO FAR OF FY 25 IS LOWER THAN WHAT WAS ACHIEVED FY 24.
ANY PARTICULAR REASON WE DID WORSE THAN THE PREVIOUS YEAR? UH, I CAN GET BACK TO YOU ON THAT.
UH, AGAIN, WE HAVE, UH, YOU KNOW, ONE OF THE, AN AUDIT THAT WILL BE LAUNCHED VERY, VERY SOON IS AROUND TEXAS PROMPT PAYMENTS.
AND SO, YOU KNOW, THAT WILL GIVE US LIKE THE REAL INFORMATION AS TO LIKE WHAT'S GOING ON THERE, HOW WE CAN DO BETTER.
UM, BUT I CAN TRY TO GIVE YOU A QUICK ANALYSIS OF THAT IN, YOU KNOW, IN DAYS TO COME TRY TO FIGURE, TRY TO PINPOINT HOW WE GOT FROM 3 MILLION TO A, A BALLPARK OF 2 MILLION.
UH, CONTROLLER, THANK YOU FOR YOUR, UM, YOUR PRESENTATION.
I APPRECIATE ALL THE WORK Y'ALL ARE DOING, ESPECIALLY WHEN, UH, IT COMES TO THE TREASURY BRINGING IN MORE DOLLARS.
UM, AND COUNCIL MEMBER INGER WAS TALKING, SPEAKING TO IT, THE $6 MILLION THAT, THAT WE'RE ABLE TO, UH, BE SEEN WITH THE AUDIT.
UM, YOU, YOU SAID THIS LAST YEAR WITH THE, WITH THE SAVINGS, YOU WOULD BE ABLE TO PAY FOR IT.
WHAT DO, WHAT DO THOSE DOLLARS CURRENTLY GO TO WHEN YOU DO FIND THE, THOSE EXTRA SAVINGS? THEY, THEY NEVER COME TO US.
RIGHT?
JUST WANNA KNOW BECAUSE, UM, I WANNA FIGURE OUT HOW YOU, WHEN YOU SAY THAT, UM, THE SAVINGS YOU'LL BE ABLE TO PAY FOR THOSE STAFF, WHAT, WHAT WOULD THAT LOOK LIKE? ULTIMATELY, WHENEVER WE GET TO A POINT WHERE SOMETHING LIKE THAT COULD WORK, RIGHT? WHERE THEY WOULD BE ABLE TO COME BACK TO YOU? DO YOU KNOW WHAT THAT PROCESS WOULD LOOK LIKE FOR, UH, I WOULD BE HAPPY TO, TO PROPOSE SOMETHING.
UM, YOU KNOW, IN TERMS OF, YOU KNOW, SO WHEN WE IDENTIFY AN OPPORTUNITY, RIGHT? AND SO IN THIS HOUSING EXAMPLE, UH, IT WAS, LOOK, WE'RE LOSING MONEY BY NOT FILING THESE, UM, THESE, UH, REIMBURSEMENT REQUESTS APPROPRIATELY.
AND SO WE CAN AVOID THAT IN THE FUTURE BY DOING X, Y, Z HOUSING HAS, HAS DONE THAT.
UM, THAT PROGRAM IS ALSO BEGINNING TO WRAP UP.
THERE'S STILL SOME HARVEY MONEY OUT THERE WITH THE STATE, AND SO NOW THAT LAW SHOULD DROP TO ZERO, RIGHT? SO, SO ESSENTIALLY MAYBE EACH DEPARTMENT THAT YOU PROVIDE SAVINGS CAN GO TO MAYBE A POT OF MONEY TO BE ABLE TO PROVIDE, UH, STAFFING FOR, FOR THIS AUDIT DIVISION.
I'D WANNA THINK THROUGH THAT MORE THOROUGHLY BEFORE GIVING YOU AN ANSWER.
I KNOW THAT SOME DEPARTMENT THAT SAID, HEY, WE FIXED OUR STUFF, DON'T COME AND TAKE OUR MONEY BECAUSE OF THAT.
AND I, AND I UNDERSTAND WHERE THEY'D BE COMING FROM, AND SO I THINK WE NEED TO BE THOUGHTFUL ABOUT HOW WE ARRANGE SOMETHING LIKE THAT.
I I JUST WANNA MAKE SURE THAT, YOU KNOW, AS YOU DO FIND THESE SAVINGS, RIGHT? IF, IF, IF THAT'S THE CASE, RIGHT THEN, UM, HOW DO WE MAKE SURE THAT WE CONTINUE TO STAFF, UH, THE AUDIT DIVISION? THE OTHER QUESTION, HOW MANY, UH, VACANCIES DO YOU HAVE RIGHT NOW? MORE OR LESS WE, INCLUDING THE VOLUNTEER RETIREMENT? I KNOW YOU SAID YOU, YOU PLAN ON, SO WE JUST HAD FOUR RETIREMENTS, SO WE CERTAINLY HAVE THOSE FOUR VACANCIES.
UH, PREVIOUS TO THAT, I BELIEVE THERE ARE TWO VACANCIES THAT ARE BEING HIRED FOR.
SO MY QUESTION IS, AND WE, WE'VE BEEN HAVING A LOT OF TOUGH CONVERSATIONS, YOU KNOW, THE PARKS DEPARTMENT IS LOOKING TO CHANGE THEIR MOWING SCHEDULE TO 24 DAYS NOW, SUPER IMPORTANT CO UH, CORE SERVICE.
UH, IS IT POSSIBLE TO UTILIZE THOSE VACANCIES TO FILL THE AUDIT DIVISION RIGHT NOW, AND THEN AS YOU FIND THOSE SAVINGS, BACKFILL THOSE POSITIONS? UM, I WOULD SAY THAT IT'S NOT, UM, THOSE, YOU KNOW, WE TALKED ABOUT KEEPING THE TRAINS ON TIME, MAKING SURE PAYCHECKS COME OUT ON TIME AND SO ON.
WE DON'T WANNA NOT PAY YOUR STAFF THEIR PAYCHECKS ON TIME BECAUSE WE'RE FOCUSED ON AUDIT.
AND SO WHEN WE HAD THESE RETIREMENTS, WE WENT ONE BY ONE THROUGH THEM, UH, WE THE ADMINISTRATION AND SAID, LOOK, WE BELIEVE THIS IS ESSENTIAL.
DO YOU AGREE? AND THE THE ADMINISTRATION AGREE THAT, THAT IT, THAT FUNCTION WAS ESSENTIAL, RIGHT? UM, AND I'M NOT, I'M NOT SURE IF THEY'RE ALL JUST THE ONES THAT ARE, UH, HELPING WITH THE PAYCHECKS, BUT, AND JUST, JUST TO CLOSE OFF, UM, BUT ARE THERE ANY OF THOSE POSITIONS THAT COULD BE, UH, PRIORITIZED AS AN AUDIT POSITION RIGHT NOW AND THEN COME BACK AND BACKFILL? UH, AGAIN, I, I WOULD SAY NO TO THAT.
UM, AGAIN, THE, THE, THEY'RE CRITICAL FUNCTIONS.
SO MOWING GRASS IS A CRITICAL, NOT FUNCTION, YOU KNOW, DO AND PICKING UP TRASH.
WE, WE HAVE A LOT OF, A LOT OF THOSE THAT WE'RE ASKING DEPARTMENTS TO KIND OF THINK THROUGH AS WELL.
I'M JUST WANNA MAKE SURE THAT NOT, AND WITH TRASH PICK UP, AND I APPRECIATE, WE'RE NOT GONNA NOT PICK UP THE TRASH, RIGHT? RIGHT.
WE'RE JUST GONNA RUN OVERTIME ON THOSE VACANCIES.
AND STILL MAKE SURE THE TRASH GETS PICKED UP.
AND SO, UM, IF YOU'RE SUGGESTING RUNNING OVERTIME IN OUR OFFICE IN ORDER TO DO THOSE CRITICAL JOBS, AGAIN, IT'S A CONVERSATION I'D BE OPEN TO HAVING, UH, THE CURRENT SETUP, UM, AGAIN, WITH THE AGREEMENT OF THE ADMINISTRATION IS TO BACKFILL THOSE ESSENTIAL ROLES.
AND SO AGAIN, WITH, ESPECIALLY WITH THE REORG
[00:40:01]
SITUATION THAT WE'RE GOING THROUGH RIGHT NOW, PART OF THE REASON THAT WE GOT TO WHERE WE ARE IS BY DOING LIKE THESE, LIKE PATCH ON BUILD OUT CHANGES OVER TIME AND TRYING TO PLUG HOLES WITH THIS AND THAT.LIKE, LET'S TAKE A REAL LOOK AT WHAT THE ORGANIZATION SHOULD LOOK LIKE AND THEN MAKE IT LOOK LIKE THAT.
I THINK THAT'S THE POINT OF THE REORGANIZATION EXERCISE.
AND SO WE'VE SUBMITTED THE NEW REORG MODEL, UH, IT'S BEEN APPROVED BY THE ADMINISTRATION AS, HEY, THIS MAKES SENSE.
WHAT WE'RE SAYING IS THAT IN ADDITION TO THAT MODEL THAT MAKES SENSE.
WE KNOW THAT WE'RE UNDER-RESOURCED IN AUDIT, THAT WE HAVE BEEN FOR SEVERAL YEARS.
UM, THAT, AND I WON'T SPEAK FOR ANY PREVIOUS ADMINISTRATION, BUT THAT WE HAVE THE COMMITMENT TODAY TO ACTUALLY IMPROVE UPON THIS AND MAKE IT FUNCTIONAL IN A WAY THAT ADDS REAL VALUE FOR THE CITY AND PROTECTS US FROM THESE RISKS.
AND THAT'S WHAT WE'RE ASKING YOU ALL TO SUPPORT.
UM, CITY CONTROLLER, YOU MENTIONED EARLIER, UH, I BELIEVE ABATEMENT OF SEVERAL FLOORS, UH, AND YOU'RE GONNA HAVE TO DO WORK FROM HOME, THINGS LIKE THAT.
CAN YOU TALK A LITTLE BIT MORE ABOUT THAT ABATEMENT? SURE.
UM, SO WE, UH, WHEN WE, WHEN WE WALKED INTO THE OFFICE IN JANUARY OF 2024, UH, JUST YOU JUST NOTICE WHEN YOU WALK IN, LIKE, WE GOT SOME ISSUES HERE, RIGHT? YOU SEE LIKE RUST ALL OVER THE PLACE, YOU KNOW, IT JUST LOOKS CRAZY.
I'M JUST BEING STRAIGHT UP WITH YOU.
AND SO WE ASK AROUND, WELL, HOW LONG HAS THIS CARPET BEEN HERE? WELL OVER 30 YEARS.
AND, AND THEN WE HAD COM WE HAD, THIS IS PRE PREVIOUS TO THE, THE WORK FROM HOME SORT OF ORDER THAT WENT OUT EARLIER THIS YEAR.
BUT WE HAD EMPLOYEES WHO WERE SAYING, HEY, CAN I WORK FROM HOME BECAUSE I CAN'T BREATHE RIGHT? LIKE IN MY OFFICE.
AND I'M BLESSED TO MAYBE NOT EXPERIENCE THAT THE SAME WAY, BUT WE TAKE THAT VERY SERIOUSLY.
AND SO WE HAD AN EFFORT UNDERWAY TO SAY, HEY, LET'S, LET'S CHANGE OUT THIS CARPET THAT'S BEEN THERE FOR OVER 30 YEARS THAT PEOPLE ARE COMPLAINING OF ALLERGENS AND SO ON AND SO FORTH.
AND, UM, AND THEN LET'S ALSO, YOU KNOW, LIKE THERE'S DESKS THAT HAVE LIKE HOLES IN 'EM AND STUFF.
SO ON A MUCH SMALLER SCALE, IF, IF THE, IF THE FURNITURE IS COMPLETELY BROKEN DOWN, DILAPIDATED, LET'S REPLACE IT.
AND SO WE HAD, WE ULTIMATELY IDENTIFIED LIKE $1,500 IN ESSENTIAL FURNITURE THAT NEEDED TO BE REPLACED, BUT THEN THE CARPET ACROSS SEVERAL FLOORS OF CITY HALL COST A BIT MORE THAN THAT.
UM, THERE, WHEN WE PUT THAT REQUEST IN, UH, THERE WAS A CONCERN ABOUT IT, HEY, IS THERE, ARE Y'ALL REALLY BEING AFFECTED LIKE THIS? ARE THERE REALLY ALLERGENS IN THE AIR? LET'S COME AND DO A FULL SCALE INVESTIGATION BEFORE WE APPROVE THE CARPET.
SO IT'S LIKE, SURE, LET'S DO IT.
SO THE FOLKS COME IN TO DO THE ENVIRONMENTAL TESTING, AND WHEN THEY COME IN TO DO THE ENVIRONMENTAL TESTING, THAT'S WHEN THEY IDENTIFY THE ASBESTOS ISSUE.
SO APPARENTLY THIS WAS IDENTIFIED A LONG TIME AGO, LIKE FOUR ADMINISTRATIONS AGO.
AND ABATEMENT WAS DONE ON FLOORS 1, 2, 3, AND EIGHT.
SO ONE, TWO, AND THREE, UH, SORRY, 1, 2, 3, 4, AND EIGHT.
SO CITY COUNCIL FLOORS, THE MAYOR'S FLOORS AND THE, AND THE FLOOR WHERE I PERSONALLY SIT ON, BUT ALL THE OTHER CONTROLLERS FLOORS WERE IGNORED.
UM, NOW AGAIN, THAT'S NOT A, THAT HAS NOTHING TO DO WITH THIS ADMINISTRATION.
THIS WAS DECADES AGO WHEN THIS WAS IDENTIFIED, BUT YOU HAVE FIVE FLOORS OF CITY, OF CITY HALL THAT STILL HAD THIS ASBESTOS ISSUE.
AND, AND SO ONCE IT WAS IDENTIFIED, UH, YOU KNOW, BY GSD AND THROUGH THE TESTING AND SO ON, WE TALKED TO THE ADMINISTRATION ABOUT IT, IT WAS, UH, APPROVED THAT WE DO THIS ABATEMENT.
UM, AND, AND AGAIN, WE'RE, WE'VE GOTTEN INSTRUCTION AND IT'S, IT'S ABOVE MY PAY GRADE, BUT THEY'LL TELL ME WHEN I NEED TO GET OUTTA MY OFFICE TO DO THIS STUFF AND AS NEEDS TO DEAL WITH, I GUESS WHAT I'M ASKED.
UM, AND YOU'RE INDICATING THAT THERE ARE REPORTS THAT SHOW THIS, AND ONE OF MY CONCERNS, AGAIN, GSD HAS COME BEFORE US AND WE ARE HAVING TO CUT GSDS BUDGET YET AGAIN, AND WE ARE CONTINUING TO HAVE TO PUNT ON BUILDING MAINTENANCE, BUT THERE COULD POTENTIALLY, I'M GOING TO ASSUME THAT IT'S NOT JUST THE CONTROLLER'S FLOORS THAT HAVE THIS ISSUE AT CITY HALL.
UH, AND YOU KNOW, I WILL, I I GUESS WHAT I'M ASKING IS IF IT'S JUST UNUSUAL THAT IT'S COMING OUT, YOU, YOU KIND OF INTIMATE THAT IT WAS COMING OUT OF LIKE SALARIES ALMOST LIKE PEOPLE'S NOT, YOU KNOW, OUT OF OPERATIONS.
IT'S USUALLY DONE THROUGH THE MAINTENANCE RENEWAL AND REPLACEMENT FUND.
SO I'LL ASK SOME QUESTIONS OF THE ADMINISTRATION ABOUT THE FUNDING FOR, FOR ASBESTOS
[00:45:01]
ABATEMENTS.I MEAN, JUST THE BASIC BE LIKE OUT OF OPERATIONS, NORMAL, YOU KNOW, OPERATIONS AND IT WAS SOMEHOW AFFECTING YOUR, I THINK YOU SAID YOUR OPERATIONS DEPARTMENT, YOUR AUDIT DIVISION, OR HOW THE, THE CONVERSATION THAT TOOK PLACE WAS ONE, AGAIN, ONCE IT'S IDENTIFIED, AND I WANT TO BE CLEAR AND COMPLIMENTARY, THE ADMINISTRATION IN DEALING WITH THIS IN A PROFESSIONAL WAY, ONCE THIS IS IDENTIFIED, WE TALKED ABOUT IT.
WE SAID WE GOTTA DO SOMETHING ABOUT IT.
HOW MUCH IS IT GONNA COST? AND THEN ONCE WE HAD THE PRICE TAG, IT WAS, WELL, HOW MUCH IS LEFT IN YOUR BUDGET FOR THE YEAR? RIGHT.
LET'S, LET'S USE THAT MONEY FIRST AND THEN WE WILL FIND SOMETHING ELSE IF WE HAVE TO DO IT.
AND SO THAT'S WHAT TOOK PLACE WAS, OKAY, SO WHATEVER WAS LEFT, WE'LL COVER SOME AND THEN IT'LL GO THROUGH KIND OF THE NORMAL MAINTENANCE RENEWAL I'M ASSUMING OR SOMETHING.
SO MY UNDERSTANDING IS THAT WE COBBLED TOGETHER ALL OF OUR, YOU KNOW, VACANCY, SAVINGS, ET CETERA, FOR THE YEAR THAT'S GONNA BE PUT INTO SOME CAPITAL FUND OKAY.
SO THAT IT CAN BE USED EVEN IF, 'CAUSE THIS WILL DEFINITELY GO BEYOND JUNE 30TH.
AND SO OVER THE COURSE OF, AGAIN, 10, 12, HOWEVER MANY WEEKS.
OKAY, WE'LL SHUTTING DOWN PHASES SURE.
AND IT NEEDS TO, BUT IN ADDITION TO THAT, I'D ALSO LIKE INFORMATION, EVEN IF IT'S CLOSED, A CLOSED DOOR CONVERSATION FOR COUNCIL MEMBERS ABOUT THE STATUS OF THE BUILDINGS IN WHICH OUR EMPLOYEES ARE WORKING IN AND WHAT WE ARE SEEING THERE.
ANYTHING ELSE? COUNCIL MEMBER CAYMAN? UH, NO.
WE'LL GET ANOTHER PRESENTATION FROM THE CITY CONTROLLER BEFORE, UH, ON JUST THE OVERALL BUDGET OF THE CITY THAT WE ARE PRESENTING THIS YEAR.
YEAH, WE'RE GO, WE'RE LEADING INTO TRENDS.
THANK YOU MADAM CHAIR, CONTROLLER.
SO IF MY MATH IS RIGHT, SIX UNFILLED POSITIONS CURRENTLY, IS THAT RIGHT? SO AGAIN, FOUR.
SO WITHIN, WITHIN AUDIT SPECIFICALLY, WE'VE BEEN HIRING AGGRESSIVELY AS, AS JENNIFER MENTIONED TO YOU WHEN SHE WAS UP HERE.
AND SO I BELIEVE, UH, I CAN GET BACK TO YOU ON EXACT, I THINK THERE ARE TWO OUTSTANDING VACANCIES REMAINING AND MAYBE ONE, UH, BUT SHE'S STILL HIRING.
AGAIN, RESUMES ARE BEING BROUGHT IN, WE'RE INTERVIEWING PEOPLE, SO ON.
WE ALSO HAD FOUR RETIREMENTS, AND SO THOSE VACANCIES JUST KIND OF POPPED UP ON US ON APRIL 28TH AND THEN ARE GOING TO BE REFILLED.
AND LET ME ASK YOU, I'VE, I'VE ASKED BEFORE, BUT HOW, HOW MANY AUDITS WERE COMPLETED BY THE CONTROLLER CONTROLLER'S OFFICE LAST YEAR? WITHIN THE LAST YEAR, LET'S SAY? YEAH, SO WE, SO IN THE PREVIOUS FISCAL YEAR, WE COMPLETED, I WANNA SAY NINE.
UH, WE'RE ON TRACK THIS YEAR, UH, TO COMPLETE ABOUT SEVEN BY THE END OF THE FISCAL YEAR.
UM, AS I MENTIONED TO YOU BEFORE, AND AGAIN, WE'VE PROBABLY HALF THE TIMES I COME AND SIT BEFORE YOU, WE HAVE THIS CONVERSATION.
UM, WE IDENTIFIED, UM, AROUND THIS POINT LAST YEAR, MAYBE A LITTLE BIT EARLIER, THAT, THAT WE NEEDED TO GO THROUGH A, A, A TRANSITION IN AUDIT, UM, FROM THAT POINT UNTIL JANUARY OF THIS YEAR, WE WERE WITHOUT LEADERSHIP IN THE AUDIT DIVISION.
SO THINGS CONTINUED TO MOVE FORWARD, UM, BUT NOT AT A PACE THAT I WOULD PREFER.
UM, THAT LEADERSHIP HAS BEEN IN PLACE SINCE JANUARY ONE.
UH, WHEN JENNIFER JOINED HER FIRST ORDER OF BUSINESS WAS TO GET OUR ENTERPRISE RISK ASSESSMENT AND AUDIT PLAN OUT OF THE DOOR.
UH, SHE WORKED ON, SHE AND THE TEAM WORKED ON THOSE DILIGENTLY AND THEN, YOU KNOW, RETURN THEIR FOCUS, UH, AS SHE MENTIONED, WHEN YOU GO INTO THAT ERA PROCESS, IT TAKES RESOURCES OFF THE BOARD FOR SEVERAL MONTHS.
AND, UM, AND SO ONCE THE ERA AND THE AUDIT PLAN WERE ISSUED IN, I WANNA SAY EARLY MARCH, THEN REFOCUSED ON ON THESE OTHER THINGS, UH, THERE'S A, THERE ARE SEVERAL AUDITS THAT ARE COMPLETED AND KIND OF GOING THROUGH THE WRAP UP REPORTING PROCESS RIGHT NOW, YOU SHOULD SEE I JUST, I APPROVED TWO OF 'EM LIKE TWO DAYS AGO, BUT BY THE END OF THE FISCAL YEAR, I THINK WE SHOULD BE AT ABOUT SEVEN EIGHT.
LET ME ASK YOU ABOUT, UM, SLIDE 16 OPERATIONS.
UM, ONE OF THE MEASURES IS PERCENT OF ORDINANCE CERTIFICATION PROCESSES COMPLETED PRIOR TO RELEVANT CITY COUNCIL DATE.
AND, UH, GOING BACK TO FY 24, ACTUAL THROUGH FY 25 AND THEN YOUR TARGET 100%, BUT HAVEN'T THERE BEEN OCCASIONS, UM, WHERE, UM, AGENDA ITEMS WERE NOT CERTIFIED? UM, NONE WHERE WE WERE GIVEN WHAT WE NEEDED, UH, AT THE APPROPRIATE TIME.
SO WHEN Y'ALL HAVE A CITY COUNCIL MEETING ON A WEDNESDAY, THE PREVIOUS MONDAY, NOT TWO DAYS BEFORE, BUT NINE DAYS BEFORE IS WHEN WE'RE SUPPOSED TO HAVE THAT RELEVANT PAPERWORK IN OUR OFFICE.
UM, THAT WAY WE CAN COMPLETE IT, IT CAN GO ONTO THE AGENDA WHEN IT'S ANNOUNCED ON FRIDAY AND YOU CAN TAKE IT UP ON WEDNESDAY.
UM, THERE HAVE BEEN OCCASIONS WHERE SOMETHING IS POSTED ON THE AGENDA WHERE
[00:50:01]
WE HAVE NOT RECEIVED WHAT WE NEED TO DO OUR JOB BEFORE IT GETS POSTED.AND SO WE HOLD OURSELVES TO THE STANDARD OF WHEN WE GET IT ON TIME, WE GET IT OUT THE DOOR ON TIME WHEN WE GET IT LATE, WE DO OUR BEST TO ACCOMMODATE, BUT SOMETIMES WE'RE NOT ABLE TO.
'CAUSE IT SAYS RELEVANT CITY COUNCIL DATE.
WHAT, WHAT DOES THAT MEAN? THE RELEVANT CITY COUNCIL DATE? IS THAT, DOES THAT, THAT'S A CITY COUNCIL DATE THAT IS DOES NOT, I'M SORRY, GO AHEAD.
UH, I DIDN'T MEAN TO CUT YOU OFF.
UM, THAT IS A CITY COUNCIL DATE THAT IF WE HAVE, IF IT, IF IT'S, IF IT GETS TO US, RIGHT.
IF WE GOT SOMETHING TODAY, THE APPROPRIATE CITY COUNCIL DATE FROM THAT WOULD BE NOT THE COMING WHAT'S TODAY? IT WOULD BE NOT NEXT WEDNESDAY, BUT IT WOULD BE LIKE THE FOLLOWING WEDNESDAY.
SO WE NEED THAT, YOU KNOW, THAT NINE DAY TIMEFRAME FROM A MONDAY WHEN WE GET IT, NOT THE WEDNESDAY, THAT'S TWO DAYS LATER, BUT THE WEDNESDAY THAT IS NINE DAYS LATER.
SO ANYTIME THAT WE GET SOMETHING WITHIN THE CORRECT TIMEFRAME, WE GET IT OUT THE DOOR SO THAT YOU CAN TAKE IT UP AT THE APPROPRIATE TIME.
AGAIN, THERE ARE, THERE ARE MANY INSTANCES WHEN THAT STUFF COMES LATER THAN IT SHOULD, UM, OR, YOU KNOW, THEN, THEN IS THE RULE.
WE DO OUR BEST TO WORK THROUGH THAT AND GET THE STUFF OUT THE DOOR.
UH, MANY TIMES WE'RE ABLE TO DO THAT.
UM, AND THEN SOMETIMES WE'RE NOT.
BUT IN TERMS OF GETTING IT ON TIME AND DELIVERING IT ON TIME, WE DO THAT 100% OF THE TIME.
SO THAT BASICALLY MEANS THAT THE DATE ON WHICH CITY COUNCIL ACTUALLY VOTES ON IT UP OR DOWN.
OKAY, COLLEAGUES, THAT LOOKS LIKE THE LAST OF OUR QUESTIONS FOR YOU, CONTROLLER, BUT I KNOW WE'RE STILL TO DO THE TRENDS REPORT, SO WE'LL MOVE TO THE TRENDS REPORT RIGHT NOW.
LET, LET'S GET THAT PRESENTATION LOADED UP.
SO JUST TO WALK YOU THROUGH, UH, WHAT'S IN HERE, JUAN'S A GENERAL ECONOMIC OUTLOOK FOR THE CITY, FOR THE REGION.
UH, THEN WE'LL SPEND SOME TIME WITH, UH, GENERAL FUND WITH THE VARIOUS REVENUE SOURCES, GENERAL FUND PROPERTY TAXES, SALES TAXES, UH, AND FRANCHISE TAXES.
AND THEN WE'LL GO INTO EXPENDITURES FOR THE GENERAL FUND, AND THEN WE TAKE UP THE ENTERPRISE FUNDS, UH, LATER ON IN THE PRESENTATION.
UM, SO IN ORDER TO, YOU KNOW, THE WAY THAT WE THINK ABOUT, UM, THE FUTURE OF THE CITY, AND IT'S PARTICULARLY FOCUSED ON THE PROPERTY TAXES THAT WE'RE ULTIMATELY GONNA BRING IN AND THE SALES TAXES THAT WE'RE ULTIMATELY GONNA BRING IN.
WE'RE LOOKING AT VARIOUS ECONOMIC INDICATORS THAT, UH, THAT INCLUDES HOUSING SALES, THAT INCLUDES THE PRICE OF OIL.
SINCE WE ARE SO DEPENDENT IN THIS ECONOMY ON, UH, THE ENERGY INDUSTRY FOR, FOR OUR SUCCESS, UH, WE LOOK AT JOB GROWTH AND, UH, AND WE ALSO LOOK AT INFLATION.
AND SO, UH, ON THE HOUSING SIDE, UH, AND I KNOW THESE, THESE CHARTS ARE REALLY, REALLY SMALL.
UH, BUT WHAT YOU SAW UP UNTIL 2024 COMING OUT OF THE PANDEMIC WAS, UH, WAS STEADY GROWTH, UH, THROUGH 2024.
UH, WE THEN, UM, WE THEN SAW THAT 2020, PARDON ME, WE THEN SAW A, UH, GOLLY, I CAN BARELY READ THIS.
WE THEN SAW THAT IN 2024, SALES STARTED TO COME DOWN AND THEN, UH, FLATTEN OUT.
AND SO, SO FAR IN 2025, WHAT WE HAVE SEEN IS, IS STEADY, UH, DEMAND AND EXPANDING INVENTORY, WHICH ARE, WHICH ARE POSITIVE SIGNALS, UH, IN THE MARKET.
UH, BUT WE ALL HAVE, I IMAGINE, BEEN PAYING ATTENTION TO WHAT'S HAPPENING, PARTICULARLY AT THE FEDERAL LEVEL AROUND TARIFFS AROUND, UM, CONSUMER CONFIDENCE.
AND SO, UH, THERE IS A, A, A MODEST OUTLOOK ON, ON THE LOCAL HOUSING ECONOMY, LARGELY BECAUSE OF CONSTRUCTION COSTS AS WELL AS THE COST OF HOME LOANS, WHICH LEADS OF COURSE TO AFFORDABILITY ISSUES, UH, WITH OIL PRICES, NO, WE'RE STILL THERE.
UH, OIL PRICES, UM, ARE PROJECTED TO REMAIN AT A MODEST LEVEL BETWEEN 56 AND $63 PER BARREL.
UH, AGAIN, DUE TO A RANGE OF, OF FACTORS IN THE GLOBAL MARKET, MANY OF WHICH ARE OUTSIDE OF OUR CONTROL, WHAT OUR FRIENDS IN THE MIDDLE EAST, YOU KNOW, DO WITH THEIR SUPPLIES AND SO ON.
UM, THE SHORT OF IT IS IF OIL PRICES GO UP, HOUSTON TENDS TO DO QUITE WELL.
UM, IF OIL PRICES GO DOWN, THEN WE HAVE, UH, SOME ISSUES RIGHT NOW, THERE'S SORT OF A MODEST, AGAIN, KIND OF WAIT AND SEE, LOOK ON THE PRICE OF OIL IN THE FUTURE.
UH, SIMILARLY WITH JOBS, UH, GHP IS PROJECTING STRONG GROWTH
[00:55:01]
FOR 2025 WITH AN INCREASE OF ROUGHLY 72,000 JOBS.BUT THE TARIFFS, THE UNCERTAINTY, YOU KNOW, SAME GENERAL CONCERN THERE.
UH, AND THEN INFLATION, INFLATION SPIKED COMING OUTTA THE PANDEMIC DUE TO SUPPLY CHAIN ISSUES.
UH, IT HAS GONE, UH, BACK DOWN TO MUCH MORE REASONABLE LEVELS, BUT THE TARIFFS, RIGHT? SO WE'RE STILL WAITING TO SEE, UM, IT'S, IT SOUNDS LIKE WHAT'S BEEN AGREED TO WITH CHINA IS LIKE A 30% TARIFFS, SO THAT THAT PRICE OF GOODS IS GOING UP.
WE KNOW THAT EGGS ARE LIKE DOUBLE THE PRICE THAT THEY WERE, YOU KNOW, SIX MONTHS AGO, SO ON AND SO FORTH.
AND SO WE'RE STILL, AGAIN, ALL OF THIS FRANKLY IS WE'RE, WE'RE AT A TIME, UNFORTUNATELY, OF UNCERTAINTY.
AND WHILE SOME INDICATORS AROUND JOB GROWTH, UNEMPLOYMENT AND SO ON, UH, APPEAR TO BE REASONABLE POSITIVE, THERE'S A LOT OF, UH, CONCERN IN SORT OF WALKING AROUND ON EGGSHELLS AS WELL.
UH, CPI, I MEAN, PARDON, NOT CPI, CONSUMER CONFIDENCE AS TAKEN THROUGH, UM, A POLL OVER THE COURSE OF SEVERAL YEARS IS AT ITS LOWEST RIGHT NOW.
UM, NORMALLY PEOPLE VOTE WITH THEIR WALLETS ON THAT SORT OF STUFF, SO WHEN THEY'RE NOT CONFIDENT THAT THINGS ARE GONNA GET BETTER IN THE FUTURE, THEY START TO TIGHTEN THEIR SPENDING AND SO ON.
AND SO, PARTICULARLY AS WE THINK ABOUT ABOUT SALES TAXES GOING INTO, UH, THIS COMING FISCAL YEAR, WE'RE GONNA HAVE A CONSERVATIVE, UH, OUTLOOK.
SO, GENERAL FUND REVENUE, UH, EXCLUDING OTHER SOURCES, THAT NUMBER IS, UH, PROJECTED TO GO UP IN THIS BUDGET BY, UH, JUST OVER $20 MILLION.
THE, UH, THE BIG INCREASE THAT YOU SEE IS, IS, UH, AN INCREASE OF NEARLY $80 MILLION IN WHAT WE BELIEVE WILL BRING IN IN PROPERTY TAXES.
UM, THAT IS OFFSET BY APA FUNDING GOING AWAY, UH, INTERGOVERNMENTAL, UH, DOLLARS GOING DOWN, UH, SALES TAX, AGAIN, WE'RE PROJECTING A, A SMALL, UH, BUT REAL DECREASE AND ALSO DECREASE, UH, IN FRANCHISE FEES.
SO PROPERTY TAX REVENUE, UH, AGAIN, AS IT'S PROJECTED IN, IN THE PROPOSED BUDGET THAT YOU HAVE FLIPPED THROUGH, IS SHOWING AN INCREASE OF ROUGHLY $80 MILLION, WHICH IS, UH, GETTING TOWARDS 6%.
UH, THAT IS ESSENTIALLY THE PROPERTY, UH, PARDON ME, THE REVENUE CAP FIGURE.
SO WE'RE PROJECTING PROPERTY TAX REVENUE, UH, OR THE ADMINISTRATION IS PROJECTING, UH, PROPERTY TAX REVENUE AT THE REVENUE CAP FIGURE.
UM, IF YOU LOOK AT THE PROP ONE TERMS THAT WE, THAT WE NORMALLY SEE, WHICH IS WHAT'S THE GROWTH IN INFLATION? WHAT'S THE GROWTH IN POPULATION? WE'RE CURRENTLY PROJECTING A FLAT POPULATION GROWTH, BUT WE'LL ADJUST THAT SOON.
AND WHAT WE HAVE SEEN FROM 2024 INFLATION IS TWO AND A HALF, UH, PERCENT, UH, LOOKING AT TAXABLE VALUES.
AND SO AGAIN, THIS IS THE, THE VALUE OF THE TAXABLE REAL ESTATE WITHIN, UH, CITY LIMITS.
WHAT WE'RE PROJECTING, UH, FOR THAT IS, PARDON ME, $330 BILLION.
THERE'S, IT SAYS MILLION HERE, IT'S BILLION $330 BILLION, WHICH IS AN INCREASE, UH, ABOUT 2% FROM, UH, FISCAL YEAR 2025.
UH, OUR PROPERTY TAX RATE, AS YOU ALL, UH, KNOW, THE PROPERTY TAX RATE IN THE LAST 11 YEARS HAS BEEN DECREASED NINE TIMES, UH, FOR US TO STAY UNDERNEATH THE, THE VOTER IMPOSED REVENUE CAP.
UM, THIS PAST YEAR, IT WAS, IT WAS FLAT, UH, IT WAS NOT DECREASED OR INCREASED.
UM, BECAUSE OF THAT, WE CAME IN UNDER THE REVENUE CAP FOR THE FIRST TIME IN QUITE A WHILE.
UH, AS WAS MENTIONED IN THE PREVIOUS COUPLE OF SLIDES, REVENUES BEING PROJECTED AT THE REVENUE CAP, UH, FOR THE COMING YEAR.
AND WHEN YOU SEE A PROPERTY TAX, OR PROPERTY, SORRY, REVENUE INCREASE OF THAT 5.7% FIGURE, BUT PROPERTY VALUES NOT MEETING THAT, WHAT'S IMPLIED THERE IS THAT A TAX INCREASE WILL BE NECESSARY IF WE'RE GOING TO HIT THE, THE REVENUE CAP FIGURE.
UM, OBVIOUSLY THAT IS A, A CHOICE, BUT THAT'S WHAT'S BEING, UH, PROJECTED HERE.
SALES TAX REVENUE, UH, WE ARE PROJECTING A 1.3% DECREASE FROM FISCAL YEAR 2025.
UM, WHAT, WHAT, WHAT YOU'LL SEE IN THE NEXT MOER IS THAT WE'RE INCREASING
[01:00:01]
OUR FY 25, UH, ESTIMATE TO BE JUST OVER $900 MILLION.UH, COMPARING THAT TO WHAT WE PROJECTED A YEAR AGO.
THIS TIME IT IS BETWEEN OUR, OUR CONSERVATIVE CASE AND OUR BASE CASE MODELS, UH, AGAIN, WHICH, WHICH ULTIMATELY IS, IS WHERE WE WANNA BE.
UH, WE WANNA MAKE SURE THAT THAT CONSERVATIVE CASE IS, IS LOWER THAN THE ACTUAL, SO THAT WE ALWAYS ARE HAVING MONEY, UH, IN OUR COFFERS.
UH, BUT WE WANT OUR, OUR BASE CASE TO BE AS ACCURATE AS IT CAN BE.
UM, I TALKED ABOUT THE UNCERTAINTY A FEW MOMENTS AGO BECAUSE OF THAT, WE'RE PROJECTING A SMALL, UH, DECREASE IN PROPERTY TAX REVENUE.
THE, THE INSTITUTE OF REGIONAL FORECASTING, WHICH WE WORK WITH REGULARLY ON THIS SORT OF STUFF, IS, IS PROJECTING THAT CONTINUED ECONOMIC GROWTH.
BUT AGAIN, THERE'S THE CAUTION AROUND THE UNCERTAINTY, UH, THAT WE'RE FACING.
AND IF YOU LOOK AT THIS BOTTOM CHART WHERE THE LINE GOES ALL OVER THE PLACE, THAT IS WHAT SALES TAX GROWTH HAS LOOKED LIKE, UM, OVER THE PAST, YOU KNOW, DECADE AND CHANGE.
AND SO THAT YOU CAN SEE SOMETIMES THERE IS REAL DECREASE IN IT, SOMETIMES THERE IS REAL INCREASE IN IT.
UM, AND SO IN TIMES OF ECONOMIC UNCERTAINTY, WE DON'T WANNA BET ON, ON INCREASES, CERTAINLY NOT FROM, FROM OUR OFFICE.
SO, SO OUR CONSERVATIVE CASE WILL HAVE US AT NEGATIVE 1.3% GROWTH PROJECTED, AND THEN WE'LL SHARE, UH, WE HAVE OUR BASE CASE AND OUR OPTIMISTIC CASES AS WELL.
UH, WE'RE PROJECTING THIS TO GO DOWN BY ABOUT 2%, WHICH IS EQUIVALENT TO $3 MILLION.
UH, THERE WAS STATE LAW CHANGED A COUPLE YEARS BACK AS IT RELATES TO FRANCHISE FEES.
AND, AND BECAUSE OF THAT, WE'VE SEEN SLOW BUT STEADY DECLINES TO WHAT'S COMING IN FROM THAT FRANCHISE FEE.
AND SO, UM, AGAIN, ON A, ON A $7 BILLION BUDGET, THIS IS, YOU KNOW, A, A, A ROUNDING ERROR, BUT IT'S, BUT IT'S REAL, IT'S ABOUT A $3 MILLION ESTIMATE IN THE, UH, DECREASE, UH, FOR, FOR THE CONTROLLER'S OFFICE ESTIMATE.
SWITCHING OVER TO THE EXPENDITURE SIDE, UH, THE GENERAL FUND EXPENDITURES, UH, ARE PROJECTED, UH, TO DECREASE SLIGHTLY.
WE SHARED THAT ON, ON A PREVIOUS SLIDE.
UM, ONE THING THAT, THAT WE'RE FLAGGING IS THE 11.80 CENT FULL CONTRIBUTION.
SO ON THIS PAST WEDNESDAY, YOU ALL APPROVED, AND THEN I SIGNED LATER THAT DAY, UH, A SETTLEMENT WITH THE ENGINEERS, WITH THE PLAINTIFFS, UM, THAT SETTLEMENT NEEDS TO GO BEFORE THE COURT.
OBVIOUSLY, WE'RE HOPING THAT THE COURT APPROVES IT.
UH, BUT WE HAVE TO SHOW YOU THE NUMBERS, LIKE BOTH WAYS IF THEY DON'T APPROVE IT, IF THEY DO APPROVE IT.
SO IF YOU LOOK AT THIS SLIDE, THERE'S A, ON FISCAL YEAR 2025 AND FISCAL YEAR 2026, YOU SEE A SMALL DARK PURPLE, UH, LITTLE RECTANGLE UP THERE.
UM, IT LOOKS REALLY SMALL ON A $3 BILLION STACK, BUT THOSE REPRESENT $92 MILLION IN THE CURRENT FISCAL YEAR AND $91 MILLION IN THE NEXT FISCAL YEAR, UH, WHICH WOULD BE THE IMPACT IF THEY DON'T APPROVE THIS.
AND SO, AGAIN, WE, IT'S OUR RESPONSIBILITY TO SHOW YOU WHAT THAT LOOKS LIKE, UH, IN CASE THAT, IN CASE THE COURT DOESN'T AGREE WITH THE SETTLEMENT.
SO THE, THE $74 MILLION DECREASE FROM FY 2025 TO FY 2026, IT'S A DECREASE OF ROUGHLY 20, UH, PARDON ME, 2.4 UH PERCENT.
AND SO, UH, JUST SHOWING YOU AGAIN, TRANSPARENTLY WHAT THAT'S DRIVEN BY, UH, THE BIGGEST PIECE OF THIS IS, IS OVERTIME.
UH, AGAIN, WE TALKED TO YOU ABOUT THIS ABOUT A MONTH AGO.
LAST YEAR, THE CITY BUDGETED $65 MILLION IN THE GENERAL FUND FOR OVERTIME.
THE ACTUAL TURNED OUT TO BE OVER $130 MILLION.
AND SO WE WERE OVER BY 65, $70 MILLION.
I THINK THAT THE NUMBER WAS 72 OR $73 MILLION THAT WE WERE OVER.
UM, WHAT'S IN THIS BUDGET IS $58 MILLION.
SO AGAIN, I'LL REPEAT THOSE NUMBERS.
LAST YEAR WE BUDGETED 65, WE SPENT 130 SOME ODD.
AND SO, UM, YOU KNOW, WE WILL HAVE TO CUT OVER TIME THAT FLOWS THROUGH THE GENERAL FUND IN MORE THAN HALF TO ACHIEVE THAT NUMBER.
UM, NEXT UP IS, IS DEBT SERVICE.
THESE ARE, UH, THIS IS A, A SORT OF A STANDARD, UH, FIGURE IN TERMS OF,
[01:05:02]
YOU KNOW, WE DON'T SEE ANY ISSUE WITH THIS FROM OUR TREASURY DIVISION, BUT JUST BASED ON SOME MONEY THAT'S MOVED AROUND AND WHAT WE HAVE IN CASH RESERVES AND SO ON, UM, $57 MILLION WILL, PARDON ME, WE WILL SPEND $57 MILLION LESS IN THE GENERAL FUND, UH, TO FUND, UH, DEBT SERVICE.AS YOU KNOW, DEBT SERVICE REMAINS ABOUT ONE SIXTH OF GENERAL FUND SPENDING, SO IT'S STILL QUITE LARGE, BUT, UH, YOU ARE SEEING A DECREASE.
UH, HERE, UH, YOU'RE FAMILIAR WITH THE VOLUNTARY RETIREMENT PROGRAM.
UH, THE ADMINISTRATION IS ESTIMATING $29 MILLION IN ELIMINATION OF POSITIONS.
UH, AFTER THAT VOLUNTARY RETIREMENT.
UH, WE'RE ALSO SEEING $22 MILLION LESS IN PENSION CONTRIBUTIONS.
UH, ON THE OEP SIDE, THERE'S NO CHANGE FROM YEAR TO YEAR BECAUSE THE MOST, YOU KNOW, WHAT YOU APPROVED DURING THE GENERAL APPROPRIATION WAS ZEROING OUT, UH, THE APPROPRIATION LAST YEAR, AND THERE'S ZERO THIS YEAR.
SO THERE'S, THERE'S NO NET CHANGE FROM ONE TO THE OTHER.
UM, BUT I KNOW THAT ORIGINALLY THERE WAS A PLAN TO PUT MONEY TOWARDS, TOWARDS OPAB AND GET US DOWN TO A, YOU KNOW, $1.1 BILLION, YOU KNOW, DEFICIT BY 2048, UM, $17 MILLION IN ANTICIPATED SAVINGS.
UM, THIS IS RELATED TO ERNST AND YOUNG'S WORK, BUT IF YOU LOOK IN THE EXPENDITURE LINES OF WHAT'S PROJECTED FOR NEXT YEAR, THERE'S A NEGATIVE $17 MILLION LINE IN THE EXPENDITURES.
UM, THAT'S A PREDICTION THAT THROUGH SOME OF EYS WORK, WE WILL SAVE $17 MILLION.
UM, I'LL FLAG THAT AS BEING UNUSUAL IN THE WAY THAT YOU WOULD PROJECT SOMETHING FROM A BUDGET STANDPOINT.
NORMALLY, IF YOU'RE GOING TO FIND SAVINGS, YOU WOULD JUST GO REDUCE THE BUDGET OF THE AREA WHERE THE SAVINGS EXISTED.
HERE, THERE'S A SORT OF A $17 MILLION PLUG THAT'S SITTING OUT THERE THAT SAYS, WE SORT OF KNOW WHAT WE'RE GONNA GET THIS FROM.
WE DON'T REALLY KNOW, BUT WE ARE, BUT WE'RE CONFIDENT IN IT.
SO WE'RE GONNA BUDGET, YOU KNOW, A NEGATIVE $17 MILLION.
UM, THE TEAM HAS LOOKED INTO THIS AND SAID, HEY, HAVE WE DONE THIS BEFORE? HAS THE CITY DONE SORT OF JUST PUT A SAVINGS PLUG INTO THE BUDGET? AND FROM WHAT I'M AWARE, THIS LAST HAPPENED IN THE PARKER ADMINISTRATION.
UM, I THINK IT WAS UNUSUAL AT THE TIME, AND I, WHAT I BELIEVE IS THAT THE OUTCOMES DIDN'T REFLECT THOSE SAVINGS AT THE TIME.
SO AGAIN, FLAGGING THIS FOR YOU, UH, $16 MILLION IN DEPARTMENT REDUCTIONS, THAT'S ON TOP OF THOSE VOLUNTARY RETIREMENT REDUCTIONS.
AND THEN $14 MILLION IN CONSOLIDATION OF VARIOUS GENERAL FUND EXPENSES INTO CUS.
UH, WE ARE STILL LOOKING AT THAT, UM, BECAUSE OF THE WAY THAT THE FUNDS FLOW, UH, WE JUST HAVE SOME ADDITIONAL QUESTIONS ABOUT THAT.
BUT THE BASIS OF IT FROM WHAT WE CAN SURMISE SO FAR IS THAT EXPENSES FROM, UH, THE HOUSTON EMERGENCY CENTER FROM 3 1 1, AND THERE'S ONE MORE THAT I'M MISSING OFF THE TOP OF MY HEAD.
CODE ENFORCEMENT, CODE ENFORCEMENT, THOSE HAVE TRADITIONALLY BEEN EXPENSES THAT ARE IN THE GENERAL FUND, AND THEY WILL NO LONGER BE, UH, IN THE GENERAL FUND.
UH, THAT'S OFFSET BY, UM, BY INCREASES OBVIOUSLY.
SO YOU, YOU KNOW, THE NET NET AGAIN, IS A $74 MILLION REDUCTION.
YOU SEE A LOT OF REDUCTIONS ON THE LEFT HAND SIDE.
THERE ARE INCREASES ON THE RIGHT HAND SIDE.
UH, YOU ALL ARE VERY FAMILIAR WITH THE CONTRACTS THAT HAVE BEEN SIGNED WITH FIRE, POLICE AND MUNICIPAL EMPLOYEES OVER THE LAST, UH, YEAR AND SOME CHANGE.
AND SO THEY HAVE CONTRACTUAL RAISES THAT'LL COME DUE JULY 1ST, UH, 3% FOR FIRE, WHICH IS THE LOW END OF WHAT WAS APPROVED IN THE CONTRACT.
ONE OF THE CONTRACT THAT YOU ALL JUST APPROVED, NO, THAT YOU'LL APPROVE TOMORROW.
YOU'LL HAVE THE OPPORTUNITY TO APPROVE TOMORROW.
AND THEN, UM, AND THEN, UH, HOPE RAISES THAT YOU ALL APPROVED PREVIOUSLY, THAT WILL COME INTO EFFECT FOR 3.5%.
UH, ALSO $48 MILLION IN CAPTURED REVENUE THAT'S GOING INTO STREETS AND DRAINAGE.
UM, SOME OF THAT IS ASSOCIATED WITH THE, THE SETTLEMENT WITH THE ENGINEERS.
UH, $38 MILLION IN OTHER AREAS.
UM, $9 MILLION IN RESTRICTED ACCOUNT CHARGEBACKS.
AGAIN, THESE ARE IT SERVICES, ET CETERA, THAT DEPARTMENTS GET CHARGED.
UH, AND THEN A $7 MILLION, UH, INCREASE IN HEALTH BENEFITS DUE TO, UH, DUE TO A RATE INCREASE CONTROLLER.
UH, THIS IS ALL SUPER IMPORTANT, BUT I AM GONNA ASK YOU TO KIND OF GO A LITTLE SWIFTER THROUGH THE REMAINING SLIDES.
WELL, I KEPT THE WHEELS ON UNTIL THIS LAST DAY, YOU GUYS, AND THEN THEY'VE JUST KIND OF COME UP.
I WILL TELL EVERYBODY I'VE ORDERED LUNCH, SO WE HAVE SOME, THIS IS ALL VERY
[01:10:01]
IMPORTANT AND SERIOUS WORK, AND I WANT EVERYBODY'S PARTICIPATION.SO THERE, WE'LL BE LUNCH BACK HERE.
WE STILL HAVE LIBRARIES AND POLICE TO DO, BUT AS FAST AS YOU CAN TALK CONTROLLER, I'LL ADD SOME PACE.
UM, THIS IS SUPER FAMILIAR, SO WE WON'T SPEND ANY TIME HERE, BUT AGAIN, 60% OF THE BUDGET IS SPENT ON POLICE AND FIRE.
ANOTHER ONE OUTTA EVERY $6 SPENT ON, UH, DEBT SERVICE.
AND THEN THAT SMALL PINK CHUNK, YOU KNOW, WHICH REPRESENTS A QUARTER OF THE GENERAL FUND, THAT IS LITERALLY EVERYTHING ELSE IN THE GENERAL FUND.
SO, YOU KNOW, IF, IF YOU'RE A HOUSTON TAXPAYER, THE MAJORITY OF WHAT YOU INVEST IN AT THE CITY THROUGH YOUR TAX DOLLARS IS PUBLIC SAFETY FOR YOU AND YOUR FAMILY AND YOUR NEIGHBORHOOD.
UM, OVER THE COURSE OF THE LAST DECADE, UH, WHAT YOU CAN SEE IS THAT, YOU KNOW, IN EARLY YEARS IT WAS UP, DOWN, UP, DOWN, UM, WITH ARPA DOLLARS COMING IN, UM, YOU SAW A DRAMATIC INCREASE WHERE IN FISCAL YEAR 2024, WE HAD A RECORD, UH, FUND BALANCE OF $567 MILLION, UM, BASED ON PROJECTIONS IN OUR BASE CASE SCENARIO, WHICH IS THE COURT APPROVING THE SETTLEMENT THAT YOU ALL SIGNED, THAT'S GOING TO, UH, DROP DOWN BY THE END OF FISCAL YEAR, UH, 2026 TO, UH, ABOUT 8.7%.
$220 MILLION IS THE NUMBER, BUT IT'S 8.7% OF, UH, RESERVES, YOU KNOW, MINUS, PARDON ME, 8.7% OF GENERAL FUND EXPENDITURES, LESS DEBT SERVICE AND PAY AS YOU GO.
UM, THE SITUATION GETS MUCH BLEECKER, UH, IN THE CASE THAT THE COURT DOES NOT APPROVE, UH, THE SETTLEMENT.
IN THAT CASE, WE WOULD BE AT $153 MILLION BELOW THE 7.5% FIGURE, UH, WHICH IS OBVIOUSLY A, A HUGE SITUATION, RIGHT? SO WHEN THAT SETTLEMENT FIRST CAME DOWN, UM, I SAT BEFORE YOU AND SAID, HEY, THIS IS, THIS IS A GUT PUNCH TO THE CITY'S FINANCES.
UM, IT REMAINS THAT WAY IF THE COURT DOES NOT APPROVE THIS SETTLEMENT, IF THE COURT DOES APPROVE THIS SETTLEMENT, UH, THINGS IMPROVE SIGNIFICANTLY.
UH, BUT WE'RE STILL INCHING, PROJECTING TO INCH TOWARDS THAT 7.5%.
THIS IS A, THIS IS A SIMILAR LOOK AT, UM, AT THE FIGURES YOU JUST SAW, AGAIN, THE, FOR THE PAST DECADE, WHAT YOU SAW FROM YEAR TO YEAR.
SOMETIMES FUND BALANCE GOES UP, SOMETIMES FUND BALANCE GO DOWN.
UH, IN FISCAL YEAR 2025, UH, WE HAD THE LARGEST, UH, DEFICIT IN THE CITY'S HISTORY.
UH, THAT IS PROJECTED TO BE $213 MILLION, WHICH GROWS, IF THE COURT DOES NOT APPROVE THE SETTLEMENT.
UH, WE'RE PROJECTING FOR THIS COMING YEAR, UH, WILL BE THE SECOND LARGEST DEFICIT IN THE CITY'S HISTORY, PROJECTED TO BE $134 MILLION.
AGAIN, OF COURSE, THE, THE, THE ADMINISTRATION'S NUMBER IS $107 MILLION.
OURS, BASED ON SOME, SOME DIFFERENCES IN REVENUE PROJECTIONS IS 134.
UH, BUT THESE ARE THE FIGURES, AND OF COURSE, AGAIN, THEY GET SIGNIFICANTLY WORSE IF THE COURT DOES NOT APPROVE THE SETTLEMENT.
AND AGAIN, WE'RE, WE'RE ASKING THE COURT TO APPROVE IT, BUT WE'RE SHOWING THESE NUMBERS TO YOU SO THAT YOU HAVE THEM.
UM, SO WE'RE, WE'RE TO THE ENTERPRISE FUNDS.
UH, THE AIRPORT SYSTEM IS, UH, PROJECTING A 4.5% INCREASE IN REVENUE.
UH, TOTAL EXPENSES AND DEBT SERVICE ARE PROJECTED TO INCREASE BY 23.2%, UH, TO 661 MILLION.
HOWEVER, REVENUE WILL STILL OUTPACE EXPENSES, UH, BY $78 MILLION, UH, IN THIS BUDGET.
A DEEPER LOOK AT, AT THESE REVENUES, UM, THEY'RE DRIVEN BY INCREASES IN OPERATING REVENUE DUE TO TERMINAL SPACE AND RENTAL FEES, CONCESSIONS, AND SO ON.
UH, THERE'S A REDUCTION TO IT BASED ON INTEREST INCOME.
AND IN LOOKING AT EXPENSES AND DEBT SERVICE, UH, INCREASES ARE PRIMARILY DUE TO $90 MILLION INCREASE IN CONTRACTED SERVICES.
AS YOU MAY HAVE NOTICED, THERE'S A LOT OF WORK GOING ON AT THE AIRPORTS.
UH, $38 MILLION INCREASE IN DEBT SERVICE TRANSFER, UH, OFFSET BY $3 MILLION IN PERSONNEL SAVINGS.
COMMISSION ENTERTAINMENT REVENUES PROJECTED TO GO UP 6.7%, UH, TO 133 MILLION TOTAL EXPENSES, UH, AND DEBT SERVICE PROJECTED TO GO UP 7% TO 134 MILLION.
SO THE, UM, THE EXPENSES SLIGHTLY EXCEED, UH, THE REVENUE.
UH, THE REVENUES ARE PRIMARILY DRIVEN BY HOTEL OCCUPANCY TAXES, AND AGAIN,
[01:15:01]
THERE'S A PROJECTION FOR, UH, AN INCREASE THERE.UH, COSTS ARE GOING UP, PRIMARILY DUE TO, TO TRANSFERS.
AGAIN, PARTICULARLY WITH THE CONVENTION CENTER, THERE'S A LOT OF WORK THAT'S GONNA BE GOING ON HERE OVER THE NEXT SEVERAL YEARS.
UM, BUT AGAIN, WITH IF BOTH OF THESE ENTERPRISE FUNDS ARE, ARE QUITE HEALTHY.
COMBINED UTILITY SYSTEM REVENUE PROJECTED TO INCREASE BY ABOUT 8%, UH, TO 2.1 BILLION.
EXPENSES AND DEBT SERVICE PROJECTED TO INCREASE 5%, ALSO TO JUST SOUTH OF 2.1 BILLION, UH, REVENUE PROJECTED TO EXCEED EXPENSES BY $11 MILLION.
SO A NET IMPROVEMENT IN POSITION.
UH, THE REVENUE INCREASE IS DRIVEN, UH, BY WATER AND SEWER SALES.
$165 MILLION INCREASES PROJECTED, UH, ALSO, UH, OFFSET BY A DECREASE IN IMPACT FEES, A SMALL DECREASE IN NON-OPERATING REVENUES.
AND THE INCREASE IN EXPENSES, UH, IS DUE TO A $20 MILLION INCREASE IN OPERATION AND MAINTENANCE COSTS, UH, AND $77 MILLION IN OPERATING TRANSFERS LARGELY TO COVER, UH, DEBT SERVICE OBLIGATIONS.
DID I DO MY JOB? YOU DID YOUR JOB.
AND, AND LET ME TELL YOU, UH, CONTROLLER, THIS IS A, AN EXCELLENT TRENDS REPORT.
THERE'S A LOT OF REALLY GOOD INFORMATION IN HERE, AND I REALLY APPRECIATE YOUR, YOU AND YOUR TEAM'S WORK ON IT.
REALLY QUICK, I KNOW YOU HAD MENTIONED THAT, UH, WE'RE CURRENTLY FACING, UH, IN THIS PREVIOUS, UH, FISCAL YEAR, THE LARGEST DEFICIT EVER IN THE CITY'S HISTORY.
AND THIS, UH, WOULD BE THE SECOND LARGEST.
UM, IT SEEMS LIKE WE'RE, WE'RE SPENDING FUND BALANCE YEAR AFTER YEAR OVER THE LAST COUPLE YEARS, AND WE'RE CONTINUING TO DO THAT.
UM, THAT CAN NO LONGER REALLY TAKE PLACE GOING FORWARD BECAUSE WE'LL HAVE NO MORE AVAILABLE DOLLARS IN OUR FUND BALANCE THAT'S ABOVE THE 7.5 TO BE ABLE TO CONTINUE ON WITH THE CURRENT TREND.
SO IF THAT IS THE CASE, HOW WOULD WE BE ABLE TO BUDGET GOING FORWARD? WOULD THERE HAVE TO BE, IN YOUR OPINION, UH, OF COURSE, MORE REVENUE, BUT WHERE DO YOU GET THAT REVENUE FROM? RIGHT? AND I THINK THAT IS ONE OF THE, UH, THE BIGGEST TAKEAWAYS THAT I HAVE, AND ESPECIALLY WHEN YOU LOOK AT THE, THE FIVE YEAR FORECAST AND WHERE THE DEFICIT COULD LOOM TO GOING FORWARD, IF WE JUST KEEP IT ON BASELINE.
I JUST WANTED TO GET YOUR, YOUR, YOUR THOUGHTS ON THAT BASED ON YOUR TRENDS REPORT.
UH, I MEAN, SAME STORY AS, AS IT'S BEEN SINCE I'VE BEEN IN THIS CHAIR.
YOU INCREASE REVENUE OR YOU DECREASE COST.
UH, I KNOW THAT THERE'S SOME COST SAVINGS, UH, EFFORTS HERE, RIGHT? WE SHOWED, YOU KNOW, WE KNOW SOME REDUCTIONS ARE THERE IN STAFF AND SO ON.
UM, THERE ARE SOME QUESTIONS, PARTICULARLY AROUND THE OVERTIME NUMBER.
'CAUSE I WAS SAYING, AND THAT SAVINGS NUMBER, WE COULD HAVE THOSE COST REDUCTIONS ON PAPER, LIKE WITH THE OVERTIME, WHICH YOU MENTIONED THAT LAST YEAR WE BUDGETED 65 MILLION FOR OVERTIME, BUT WE'RE GONNA SPEND A APPROXIMATELY 137 MILLION ON OVERTIME.
BUT THEN THIS YEAR WE ONLY BUDGETED 58 MILLION, KNOWING THAT WE ALMOST GOT TO 140 MILLION THIS YEAR WITH NO REAL INCREASE IN THE AMOUNT OF PERSONNEL WITHIN PUBLIC SAFETY.
SO YOU'RE STILL USING THE SAME INDIVIDUALS TO DO THE SAME EXACT STUFF, RIGHT? SO IT, THERE, THERE'S NO WAY THAT THE NUMBERS ARE ACCURATE.
SO THE NUMBERS THAT ARE PUT ON PAPER, YOU KNOW, COULD SHOW US SAVINGS, BUT IN REALITY, BASED ON, UH, WHAT WE'VE SEEN, UH, IT, IT WOULD BE VERY DIFFICULT TO, TO, UH, MATCH THOSE NUMBERS.
YEAH, I MEAN, ON THAT IN PARTICULAR, UH, COUNCIL MEMBER, WHEN YOU SEE THAT OVERTIME FEAR GOES SO FAR OVER BUDGET, RIGHT? THERE'S, THERE'S TWO ANSWERS AS TO WHY THAT COULD BE THE CASE.
ONE IS OVER TIME IS OUT OF CONTROL AND NEEDS TO BE BROUGHT INTO CONTROL.
OR NUMBER TWO IS WE NEED THAT OVER TIME AND WE NEED TO BUDGET FOR THAT OVER TIME, RIGHT? AND SO, UH, WHAT THIS IS INDICATING IN TERMS OF THE REDUCTION BACK DOWN TO 58 MILLION IS IT WAS OUTTA CONTROL, AND NOW WE'RE GOING TO GET IT BACK UNDER CONTROL THIS YEAR.
UM, THAT'S, YOU KNOW, CUTTING IT IN MORE THAN HALF SEEMS LIKE QUITE THE TASK.
BUT, UM, BUT THAT IS WHAT'S IN THE BUDGET THAT YOU HAVE BEFORE YOU COUNCIL MEMBER POLLARD, YESTERDAY IN THE FIRE WORKSHOP, I ASKED ABOUT THE DECREASE IN, IN THE SIGNIFICANT $42 MILLION DECREASE IN OVERTIME.
AND IT WAS, UM, THEY'RE GATHERING A NET WITH ATTRITION, ADDITIONAL HEADCOUNT OF ABOUT 200.
SO THEY DID ATTRIBUTE IT TO ADDITIONAL HEADCOUNT.
COUNCIL MEMBER CAYMAN, THANK YOU, UH, CITY CONTROLLER FIRST.
IS THERE ANYTHING, PUTTING OUR CREDIT RATING AT RISK RIGHT NOW, DO WE STILL HAVE A NEGATIVE OUTLOOK? UH, WE DO REMAIN UNDER THE NEGATIVE OUTLOOK,
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UH, FROM TWO OF THE RATINGS AGENCIES.UM, WHAT THEY WANT TO SEE, AND AGAIN, THIS IS, YOU CAN GOOGLE THIS, RIGHT? WHAT THEY WANT TO SEE IS A SUSTAINABLE PLAN, RIGHT? FOR REVENUES TO ACTUALLY OFFSET OUR, UH, RECURRING COSTS.
UH, BUT THEY ALSO WANT TO SEE OUR LONG-TERM LIABILITIES DECREASE.
AND SO IN ADDITION TO THE DEFICIT BEING AN ISSUE, UH, OPEP AND PENSION ARE GOING TO REMAIN AN ISSUE.
WE KNOW THAT OVER SEVERAL YEARS AND THROUGH SOME TOUGH, UH, YOU KNOW, SOLUTIONS AND SACRIFICES THAT THE PENSION OBLIGATION WAS BROUGHT DOWN SIGNIFICANTLY, WE'RE NOW AT ABOVE 90% FUNDED ON THAT.
UH, BUT WE ARE ALSO NOW DECREASING OUR CONTRIBUTION, UH, TO THE PENSIONS.
AND THEN OPEP, WE'VE CON, YOU KNOW, WE'RE PAYING IT AS WE GO, RIGHT? BUT IF WE THINK ABOUT THE LONG-TERM LIABILITY, WE KNOW WE HAVE SOME REAL ISSUES THERE.
THIS COUNCIL DECIDED THAT Y'ALL ARE GONNA START PUTTING MONEY TOWARDS THAT AND THE OPEP TRUST.
UH, BUT SO FAR WE HAVEN'T DONE THAT.
AND SO, UM, I THINK AGENCIES WILL BE WATCHING THAT.
AND I'VE BEEN ASKING EVERY DEPARTMENT THIS, UH, YOU KNOW, WE BROUGHT UP THE ECONOMIC OUTLOOK BETWEEN TARIFFS, JOB LOSSES, AND RIGHT NOW IT'S SHOWING A SLIGHT GAIN IN JOBS ADDED IN HOUSTON.
BUT IN TMC, THEY'RE LOSING JOBS.
A LOT OF THIS IS BECAUSE OF THE FEDERAL IMPLICATIONS OF FUNDING GRANTS THAT ARE BEING CUT AND THINGS LIKE THAT.
THE OIL AND GAS ENERGY SECTOR, THERE HAVE BEEN JOB CUTS, NASA HUGE SECTORS THAT IMPACT OUR CITY, AND THERE'S A LOT OF UNCERTAINTY.
UH, HAVE WE CALCULATED FOR THAT? HOW DO WE ACCOUNT FOR THAT? YEAH, IT, IT'S REALLY TOUGH, RIGHT? I MEAN, THE, SOME OF THE WORLD'S LEADING ECONOMISTS ARE HAVING CHALLENGES WITH THIS, RIGHT? UH, YOU KNOW, JP MORGAN ON LIKE A WEEKLY BASIS IS CHANGING ITS OUTLOOK OF IF WE'RE GONNA SEE A RECESSION OR NOT GOING UP AS HIGH AS, I THINK 60% COMING BACK DOWN AS LOW AS 40%.
AND SO IT'S, UH, WE UNFORTUNATELY LIVE IN A, A COUNTRY RIGHT NOW THAT IS, UM, A BIT CHAOTIC AND HOW MANAGEMENT IS, IS TAKING PLACE, AND THAT'S GONNA DRIVE A LOT OF THESE OUTCOMES.
AND SO, UH, WE'RE GOING TO HAVE TO JUST REMAIN VIGILANT IN PAYING CLOSE ATTENTION TO WHAT'S GOING ON AND TRYING TO REACT TO THAT.
I KNOW THAT THE CONTROLS OFFICE THROUGH AUDITS IS GONNA BE LOOKING AT OUR EXPOSURE ON GRANTS.
I KNOW, I KNOW FINANCE HAS ALREADY GONE THROUGH A SIMILAR OPERATION.
THAT'S SOMETHING WE HAVE TO PAY ATTENTION TO.
BUT WITH THE BROADER ECONOMY, AGAIN, OIL PRICES AND SO ON, THINGS ARE GOING TO UNFOLD, AND WE'RE JUST GONNA HAVE TO KEEP A, A CLOSE WATCH.
AND WITH THAT, UM, YOU KNOW, HOW WE WOULD PREPARE, HOW I WOULD LIKE TO PREPARE IS HAVING ENOUGH RUNWAY IN OUR BUDGET, UM, WITH WHAT YOU'RE SHOWING US, WE DON'T NECESSARILY HAVE THAT RUNWAY.
UH, YOU TALKED ABOUT, YOU KNOW, OUR, OUR GENERAL FUND, AND I'M CURIOUS AS TO HOW YOU THINK WE GOT WHERE WE ARE, HOW WE GOT TO THIS GAP, THIS HUGE DROP IN OUR GENERAL FUND BUDGET.
MY RECOLLECTION IS, UH, WHEN WE WERE CLOSING OUT OUR FIRST TERM, UH, WE LEFT DOLLARS SO THAT THERE WOULD BE RUNWAY FOR THIS NEW ADMINISTRATION, AND WE'VE LOST THAT.
PLUS WE'VE DROPPED IT LOOKS LIKE OVER 200 MILLION, UH, BELOW THAT.
UH, SO AGAIN, THE, THE FUND BALANCE BUILT UP LARGELY DUE TO ARPA DOLLARS THAT WERE ONE TIME DOLLARS.
UH, THE CITY, AS WE, WE TALKED ABOUT THE, THE VARIOUS, UM, RAISES THAT WERE RECEIVED BY CITY EMPLOYEES, WHICH AGAIN, WE HAVE FACED INFLATION OVER THE LAST, UH, YOU KNOW, COUPLE OF YEARS.
WE KNOW THAT OTHER MAJOR CITIES ARE PAYING THEIR POLICE, PAYING THEIR FIREFIGHTERS, PAYING THEIR MUNICIPAL EMPLOYEES AT A CERTAIN LEVEL, AND TO COMPETE WITH THEM, AND ALSO TO COMPETE WITH THE PRIVATE SECTOR FOR OUR MUNICIPAL EMPLOYEES, AT A CERTAIN POINT, WE, WE HAVE TO TAKE CARE OF THEM.
AND SO SOME OF THESE RAISES ARE, ARE QUITE NATURAL IN WHAT YOU WOULD EXPECT, BUT THEN YOU HAVE TO HAVE THE REVENUE TO OFFSET THEM.
AND SO, YOU KNOW, AS WE WERE GOING THROUGH THE FIRST OF THESE, WHICH HAPPENED TO BE FIREFIGHTERS, YOU KNOW, WHAT OUR OFFICE SAID WAS, LOOK, IT'S Y'ALL'S VOTE OF HOW MUCH TO GIVE THEM IN BACK PAY, UM, HOW MUCH TO AWARD IN TERMS OF RAISES, BUT YOU HAVE TO PAY FOR IT.
AND SO WE TOOK ON THESE EXPENSES WITHOUT IDENTIFYING THE REVENUE, UH, OR THE OFFSETTING REDUCTIONS.
I MEAN, IT'S PRETTY, IT'S PRETTY STRAIGHTFORWARD.
THE ONLY WAY WE GOT INTO IT WAS RAISING OUR COST ABOVE OUR REVENUE.
THE ONLY WAY TO GET OUT OF IT IS TO BRING COST BACK DOWN OR BRING REVENUE UP BACK IN Q.
I WANT TO ATTACH MY NAME TO COUNCIL MEMBER POLL'S, COMMENT, COMMENTARY ABOUT, UH, THE
[01:25:01]
BUDGET AND REALLY WHAT'S REAL VERSUS KIND OF THE TALKING POINT IN TERMS OF SAVINGS.I WANT TO, UH, GO BACK TO SLIDE 11.
SO I THINK THIS WAS A KIND OF AN OVERVIEW OF THE, UM, EY REPORT THAT YOU TALKED ABOUT, THE ADMINISTRATION DIRECTOR, DEBOWSKI, UH, THEY BOASTED A HUNDRED MILLION DOLLARS SAVINGS IN TERMS OF THIS RESTRUCTURING WITH THE VOLUNTEER EMPLOYEE PROGRAM AND OTHER THINGS.
AND IT'S NO SECRET THAT I AM, I AM NOT, I WAS NOT IN FAVOR OF THAT, AND I DON'T THINK THAT WE HAVE BEEN TAKING CARE OF MUNICIPAL EMPLOYEES.
SO, UH, BUT IF WE GO LINE BY LINE, WE SEE THERE'S A 20 MILLION, SO A $20 MILLION ELIMINATION OF POSITIONS OF THE VOLUNTARY RETIREMENT.
SO WHEN YOU ADD ALL OF IT THIS UP, IT'S CLOSE TO $76 MILLION.
IF YOU ADD THE ADDITIONAL, THE 22 FROM THE OPEP PIP, OP E AND PENSION CONTRIBUTIONS, IT BRINGS US TO $98 MILLION.
WOULD YOU AGREE WITH THE ADMINISTRATION THAT WE'VE DONE A HUNDRED, WE'VE RECEIVED A HUNDRED MILLION DOLLARS IN SAVINGS, UM, BECAUSE OF THIS.
ALL, ALL OF THESE ITERATIONS FROM THE EY REPORT.
SO I'M, I AM NOT FAMILIAR SPECIFICALLY WITH WHAT IS BEING DRIVEN BY THE EY REPORT OR NOT DRIVEN BY THE EY REPORT.
SO I CAN'T COMMENT ON WHETHER THAT FIGURE IS RIGHT OR WRONG.
UM, WE HAVE REQUESTED MORE INFORMATION AND MORE ACCESS IN TERMS OF THE RESULTS OF THAT WORK AND THE ONGOING NATURE OF IT.
AND, AND SO I CAN'T SPEAK ONE WAY OR THE OTHER.
WHAT APPEARS TO BE DIRECTLY RELATED TO EY, UM, IS THE VOLUNTARY RETIREMENT PROGRAM.
THERE MAY BE SOME OF IT IN THE $16 MILLION DEPARTMENT REDUCTIONS.
UM, BUT THE $17 MILLION IN ANTICIPATED SAVINGS, I THINK IS THE, IS IS SUPPOSED TO BE PART OF THE EY.
THAT IS THE ONE THAT I WOULD SAY HAS THE MOST SIGNIFICANT QUESTION MARK.
BECAUSE AGAIN, IF YOU'RE GONNA REDUCE THE BUDGET, REDUCE THE BUDGET, RIGHT? SAY, HEY, THE SAVINGS ARE COMING OUT OF PUBLIC WORKS, SO PUBLIC WORKS BUDGET WENT DOWN.
INSTEAD, WE HAVE A LINE ITEM OUT TO THE SIDE THAT JUST SAYS, WE'RE GOING TO IDENTIFY THESE $17 MILLION FROM SOMEWHERE.
AND, AND SO THE QUESTION IS, WELL, WHERE IS IT? YOU KNOW, WHAT'S THE PLAN? RIGHT? YOU SHOULD BE ABLE TO KIND OF LAY OUT WHERE THAT'S COMING FROM.
UM, AND RIGHT NOW, THE LEVEL OF SPECIFICITY IS, IS LACKING FROM, FROM WHERE WE SIT.
UH, BUT IN TERMS OF, RIGHT, BUT IN CONTROL.
I, AND THE REASON WHY, YOU KNOW, I HONESTLY RAISE THAT POINT IS 'CAUSE I JUST STILL HAVE HEARTBURN ABOUT THE THOUSAND EMPLOYEES IN THAT, IN THAT SO-CALLED VOLUNTARY RETIREMENT PACKAGE, RIGHT? SO WHEN WE OFFER COMPETITIVE PACKAGE FOR PUBLIC SAFETY, UM, AND EVERY DEPARTMENT HAS COME BEFORE THIS BODY TALKING ABOUT NOT JUST WORK FOR REDUCTION, BUT ALSO FINANCIAL REDUCTIONS, THAT'S GOING TO IMPACT THE SERVICES THAT EVERYDAY HOUSTONIANS SEE.
SO WHEN I DO SCRATCH MATH, THIS JUST TELLS ME WE'RE KNUCKLE TO BONE, RIGHT? SO WE CAN REDUCE ALL OF THIS, BUT THEN WE'RE SPENDING A HUGE AMOUNTS WITH NO ADDITIONAL REVENUE SOURCES, AND THE SERVICES WILL NOT IMPROVE.
REGARDLESS, IF WE CONSOLIDATE 3 1 1 AND PUT EVERYONE IN THE SAME ROOM, THE SERVICES WON'T IMPROVE BECAUSE WE'RE NOT INCREASING, INCREASING THE WORKFORCE.
AND SO THE DEMAND OF THE CITY HAS NOT STOPPED AS WE ENTER HURRICANE SEASON.
THANK YOU, MADAM CHAIR, IF I CAN JUST WRAP UP AS WE ENTER HURRICANE SEASON AND, UH, COUNCIL MEMBER CAYMAN HAS RAISED THIS OVER AND OVER AND OVER.
YOU KNOW, THAT THAT BUDGET STABILIZATION FUND THAT WE'VE INCREASED FROM 10 TO 25 GIVES US THE FLEXIBILITY TO MOVE, UH, BEFORE FEMA KICKS IN.
AND WITH THE FEDERAL ADMINISTRATION ATTEMPTING TO ERASE FEMALE.
LIKE ARE WE HAND? I'M, I'M JUST, I'M JUST REALLY CONCERNED THAT WE'RE NOT GONNA HAVE THE MUNICIPAL WORKERS WHO ARE FRONTLINE DURING A DISASTER FRONTLINE COUNCIL MEMBER MARTINEZ TALKED ABOUT, UM, PARKS DEPARTMENT MOVING FROM A 22 TO A 45 DAY MO SCHEDULE IN THIS CITY.
WE'RE GOING INTO THE SUMMER, LIKE, I THINK THINGS ABOUT TO GET REALLY REAL.
SO THIS IS NOT TO COUNCIL MEMBER POLL'S POINT, I JUST DON'T THINK IT'S ACCURATE, AND I JUST DON'T THINK WE'RE GOING INTO, UM, THIS BUDGET SEASON IN THIS FISCAL YEAR WITH A REAL SNAPSHOT OF, OF WHAT'S TO COME, ESPECIALLY WITH YOUR PROJECTIONS OF BRINGING DOWN OUR FUND BALANCE TO THE A FIVE, UM, THAT, THAT BRINGS, THAT GIVES ME ANXIETY AROUND THAT.
IT DOESN'T GIVE US THE FINANCIAL FLEXIBILITY WE NEED.
AND THEN I'LL ADD THE, UM, ANYTHING ELSE IN SHAREPOINT.
REMINDER, COLLEAGUES, PLEASE SUBMIT QUESTIONS IN SHAREPOINT.
GOING BACK TO THAT, UH, YOU KNOW, COUNCIL MEMBER THOMAS RAISED AND I CONTINUE TO HARP ON DISASTER, UH, DISASTER PREPAREDNESS.
THIS IS HOUSTON, AND NOW WE ARE SEEING THE FEDERAL GOVERNMENT REFUSING TO DECLARE NATURAL DISASTERS, WHICH THEN PRECLUDES THE CITY'S ABILITY TO GET REIMBURSEMENT FOR OUR COSTS.
UM, IN ADDITION TO THE GENERAL FUND REQUIREMENT OF 7.5, WE ALSO HAVE THE B BUDGET STABILIZATION FUND, AND THAT REQUIRES, I BELIEVE, 25 MILLION.
THE ADMINISTRATION IS SAYING WE ARE NOT REQUIRED TO REPLENISH THAT FULLY UNTIL NEXT YEAR.
UH, CITY CONTROLLER, IF WE DO NOT, IF
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WE DO NOT QUALIFY FOR ADDITIONAL REIMBURSEMENTS, WE DO NOT QUALIFY WHEN THERE ARE HEAT WAVES AND WE HAVE TO TRANSPORT PEOPLE OR OPEN UP COOLING CENTERS, OR WHEN THERE'S A FREEZE AND WE HAVE TO OPEN UP SHELTERS, WE ARE NOT GETTING REIMBURSED FOR THOSE COSTS.DOES THIS BUDGET, IN YOUR OPINION, ACCURATELY, UH, CALCULATE OR ACCOUNT FOR THE EXTENT OR RISKS THAT WE FACE IN OUR BUDGET DUE TO COSTS OF NATURAL DISASTERS AND EXTREME WEATHER THAT MAY NOT NOW BE REIMBURSABLE? YEAH, I MEAN, WE'VE SHARED TWO THINGS WITH YOU OVER THE LAST SEVERAL MONTHS.
NUMBER ONE IS THAT, YOU KNOW, WHAT WE SAW AT THE OUTSET OF THIS PRESIDENTIAL ADMINISTRATION GIVES US A LOT OF PAUSE AS TO WHETHER THE FEDERAL GOVERNMENT WILL BE THERE FOR US IN TIME OF NEED.
THE PRESIDENT HAS OPENLY FLIRTED WITH ELIMINATING FEMA ALTOGETHER, UH, SAYING THE STATES NEED TO HANDLE IT, SO ON AND SO FORTH.
TWO, WHEN WE THINK ABOUT THE BUDGET, THE BUDGET STABILIZATION FUND, UM, WE KNOW FROM OUR OWN TRACK RECORD THAT WHEN A REAL STORM, A REAL EMERGENCY HITS US, THAT $25 MILLION IS NOT ENOUGH AT ALL, UH, TO COVER THAT.
AND SO AROUND THIS TIME LAST YEAR, MAYBE A LITTLE BIT LATER, UH, I DISCUSSED WITH YOU ALL THE NEED TO THINK ABOUT HAVING A MORE REAL FIGURE THAT'S PUT INTO THE BUDGET STABILIZATION FUND, AND THAT'S THERE FOR US WHEN, UH, WHEN WE NEED IT.
WE'VE BEEN FORTUNATE THIS YEAR TO RECEIVE, UH, SUPPORT FROM THE STATE GOVERNMENT AND SO ON.
UM, AGAIN, HOW THAT ALL SHAKES OUT AT THE, AT THE END, BECAUSE THESE THINGS CAN TAKE SEVERAL YEARS TO PLAY OUT, IS YET TO BE SEEN.
BUT AS WE THINK ABOUT BEING SELF-RELIANT AND RESILIENT AS A CITY, UH, THEN WE NEED TO BE REALISTIC ABOUT WHAT RESPONSE TO THESE EMERGENCIES COST US AND HOW MUCH WE SHOULD BE PUTTING ASIDE TO BE PREPARED.
AND AS OF NOW THAT I DO NOT BELIEVE WE HAVE ACCOUNTED FOR THAT IN THIS BUDGET, UM, WE'LL SUBMIT ADDITIONAL QUESTIONS, BUT, UH, YOU BROUGHT UP ONE THING, WHICH IS HOW TO BRING IN ADDITIONAL REVENUE.
UH, WE HAVE TALKED IN OTHER HEARINGS ABOUT THE REVENUE CAPS, UH, BY THE CITY, CONTROL BY THE DIRECTOR OF FINANCES, OWN WORDS.
THIS PAST FISCAL YEAR ALONE, THE CITY LOST OUT ON $380 MILLION OVER 2.5 BILLION SINCE FY 2015 WHEN THE REV CAP ACTIVATED.
UM, MEANWHILE, THE ESTIMATE IS THAT IT ONLY SAVES THE AVERAGE HOUSTONIAN A HUNDRED DOLLARS A YEAR.
UH, DO, DO THOSE NUMBERS ADD UP? ARE YOU SEEING THOSE SAME NUMBERS IN YOUR CALCULATION SOMETIMES, RIGHT? Y'ALL'S OFFICES DIFFER? SURE.
NO, BALLPARK, WE DON'T CONTEST THOSE FIGURES, UH, AT ALL.
THOSE, THOSE ARE, THOSE ARE REASONABLY ACCURATE FIGURES.
UM, BUT I WILL TELL YOU, WHILE THE REVENUE CAP LIMITATIONS ARE REAL AND STRINGENT AND HAVE COST US UPWARD, YOU KNOW, BILLIONS OF DOLLARS AT THIS POINT LAST YEAR, YOU AS A CITY COUNCIL DID NOT EVEN HIT THE REVENUE CAP.
YOU CAME IN BELOW IT, AND THAT'S A DECISION THAT YOU ALL MADE.
AND SO WE HAVE TO BE AWARE OF BOTH OF THOSE THINGS.
I TRIED NOT TO MAKE THAT DECISION,
I DO, I DO WANNA RECOGNIZE WE'VE, UM, COUNCIL MEMBER OR WILLIE DAVIS' STAFF MEMBER HAS BEEN HERE.
I DO THINK WE NEED TO WRAP THIS UP, COLLEAGUES AND GET ON TO PUBLIC SPEAKERS, ANY PUBLIC SPEAKERS, UM, FOR THE CONTROLLER'S OFFICE, EITHER ONLINE OR IN THE CHAMBER, NOT SEEING ANY CONTROLLER.
I WANNA THANK YOU AND YOUR TEAM.
BOY, WE, WE PUT YOU THROUGH IT TODAY.
NO, THANK YOU ALL AGAIN FOR, FOR YOUR PATIENCE AND HARD WORK.
I APPRECIATE VERY MUCH, UM, GREAT INFORMATION AND THANK YOU FOR ALL YOU DO FOR OUR CITY.
WE'LL TAKE A QUICK BREAK, GUYS, UM, UM, BEFORE THE HOUSTON PUBLIC LIBRARY, AND THANK YOU DELTAS FOR STICKING WITH US.