[Budget and Fiscal Affairs on October 7, 2025.]
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SOUNDS SO BAD,THAT'S MY HGAC GAVEL I GOT, SO I'M ALL EXCITED TO USE IT.
UH, WELCOME TO THE OCTOBER BUDGET AND FISCAL AFFAIRS COMMITTEE.
WE ARE GONNA GET STARTED RIGHT AWAY BECAUSE AS YOU CAN SEE, WE HAVE A VERY LENGTHY AGENDA AND A REALLY, UM, IMPACTFUL AGENDA TODAY WITH A LOT OF, OF INTERESTING TOPICS IMPORTANT TO OUR CITY.
SO, I WANT TO START BY WELCOMING MY COUNCIL MEMBERS IN, IN ATTENDANCE, WE HAVE MAYOR PRO TEM MARTHA CASTEX, TATUM VICE MAYOR, PRO TEM AMY PECK, COUNCIL MEMBER ABBY CAYMAN IS ONLINE.
UM, VICE CHAIR MARIO CASTILLO.
COUNCIL MEMBER JOAQUIN MAR MARTINEZ IS HERE.
UH, COUNCIL MEMBER JULIAN RAMIREZ.
AND COUNCIL MEMBER TWILA CARTER.
WE ARE GOING TO GET RIGHT INTO IT WITH OUR FIRST PRESENTATION, WHICH IS THE MONTHLY FINANCIAL REPORT WITH WILL JONES, REPRESENTING THE CONTROLLER'S OFFICE.
AND MELISSA DEBOSKY FLOOR IS YOURS.
ALRIGHT, GOOD MORNING, UH, MADAM CHAIR, COUNCIL MEMBERS AND STAFF.
UH, I'M HERE TODAY TO PRESENT THE MONTHLY FINANCIAL REPORT FOR THE PERIOD ENDING AUGUST 31ST, 2025.
AND THE GENERAL FUND, THE CONTROLLER'S OFFICE IS PROJECTING AN ENDING FUND BALANCE OF 356.7 MILLION OR 14% OF EXPENDITURES, LESS DEBT SERVICE AND PAY AS YOU GO.
THIS IS 17.5 MILLION LOWER THAN THE PROJECTION OF THE FINANCE DEPARTMENT.
THE DIFFERENCE IS DUE TO A LOWER REVENUE PROJECTION THAN THE FINANCE DEPARTMENT.
BASED ON OUR CURRENT PROJECTIONS, THE FUND BALANCE WILL BE APPROXIMATELY 166.2 MILLION ABOVE THE CITY'S TARGET OF HOLDING 7.5% OF TOTAL EXPENDITURES, EXCLUDING DEBT SERVICE AND PAY AS YOU GO.
THE FY 26 BEGINNING FUND BALANCE IS 36.7 MILLION HIGHER THAN THE FY 2025 ENDING FUND BALANCE, UH, REPORTED IN THE JUNE 30TH, 2025, UH, REPORT.
THE INCREASE IS DUE TO YEAR END ADJUSTMENTS, UH, TO REVENUES AND EXPENDITURES THAT WILL NOT BE FINAL UNTIL THE FY 2025 ANNUAL COMPREHENSIVE, UH, FINANCIAL REPORT IS PUBLISHED.
OUR REVENUE AND EXPENDITURE PROJECTION REMAINS UNCHANGED FROM LAST MONTH.
UM, ALSO, UH, WE ARE PROJECTING NO CHANGES IN THE ENTERPRISE FUNDS.
UH, SO FOR THE COMMERCIAL PAPER AND BONDS, THE CITY'S PRACTICE HAS BEEN TO MAINTAIN NO MORE THAN 20% OF THE TOTAL OUTSTANDING DEBT FOR EACH TYPE OF DEBT.
AND A VARIABLE RATE STRUCTURE, WHICH IS IN LINE WITH RATING AGENCY'S GUIDANCE OF 25% FROM TIME TO TIME.
THE CITY'S ENTERPRISE CREDITS HAVE EXCEEDED THIS THRESHOLD ON AN INTERIM BASIS AS THEY HAVE UNDERTAKEN LARGE CAPITAL IMPROVEMENT PROJECTS OR MAJOR EXPANSIONS.
THIS IS THE TWO PLUS 10 FINANCIAL REPORT FOR THE PERIOD ENDING AUGUST 31ST, 2025.
FISCAL YEAR 26 PROJECTIONS ARE BASED ON TWO MONTHS OF ACTUAL RESULTS AND 10 MONTHS OF PROJECTIONS FOR THE GENERAL FUND.
BOTH OF OUR REVENUE AND EXPENDITURE, UH, PROJECTIONS REMAIN UNCHANGED FROM THE ADOPTED BUDGET AND FROM THE PRIOR MONTH.
THEREFORE, WE'RE CURRENTLY PROJECTING THE ENDING FUND BALANCE TO BE 374 MILLION, WHICH IS ABOUT 29 MILLION HIGHER THAN THE ADOPTED BUDGET, AND REPRESENTS 14.7% OF ESTIMATED EXPENDITURES, NOT INCLUDING DEBT SERVICE AND PAY AS YOU GO.
UM, THAT FUND BALANCE IS 183.7 MILLION ABOVE THE TARGET OF HOLDING 7.5% OF EXPENDITURES, NOT INCLUDING DEBT SERVICE AND PAY AS YOU GO.
UM, NOT IN MY NEXT PRESENTATION, BUT ONE OF THE OTHER PRESENTATIONS IN THE, ON THE AGENDA TODAY, I'LL TALK A LITTLE BIT MORE ABOUT FUTURE PROJECTIONS FOR THE FUND BALANCE, UM, DUE TO THE PROPERTY TAX RATE THAT WE'RE PROPOSING.
UM, BUT THESE ARE THE FIGURES AS OF THIS MONTHLY FINANCIAL REPORT, UM, FOR THE ENTERPRISE SPECIAL REVENUE AND OTHER FUNDS.
WE'RE NOT PROJECTING ANY FORECASTED CHANGES, UH, TO THOSE FUNDS.
ANY QUESTIONS ON THE MONTHLY FINANCIAL REPORT? I WOULD LIKE
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TO WELCOME COUNCIL MEMBER CAROLINE EVAN SHABAZ, COUNCIL MEMBER FRED FLICKINGER, COUNCIL MEMBER MARY ANN HUFFMAN, COUNCIL MEMBER WILLIE DAVIS AND STAFF, UM, FROM COUNCIL MEMBER CAYMAN'S OFFICE IS IN CHAMBERS, AND WE HAVE STAFF FROM COUNCIL MEMBER ED POLLARD'S OFFICE AND COUNCIL MEMBER LETITIA PLUMMER'S OFFICE.ALRIGHT, I DON'T SEE ANY QUESTIONS.
SO WE CAN GO ON TO YOUR NEXT PRESENTATION ON UPCOMING FINANCIAL TRANSACTIONS.
UM, I'M PRESENTING THIS, UM, PRESENTATION TODAY ON BEHALF OF THE FINANCE WORKING GROUP.
UH, ON THE NEXT SLIDE, I'LL GO OVER OUR AGENDA FOR THE DAY.
UH, UH, THE FIRST ITEM IS THE PUBLIC IMPROVEMENT BOND SERIES 2025, UH, SALE SUMMARY THAT WE CONDUCTED, UM, LAST MONTH.
I'LL JUST GIVE YOU AN UPDATE ABOUT WHAT HAPPENED WITH THE BOND SALE.
UM, AND THEN WE'RE GONNA TALK ABOUT AN UPCOMING COMMERCIAL PAPER PROGRAM SERIES G TWO ITEM.
SO ON THE NEXT SLIDE, JUST TO UPDATE THIS BODY ABOUT THE PENSION, UH, THE PUBLIC IMPROVEMENT BOND, SORRY, NO, NOTHING TO DO WITH PENSIONS, PUBLIC IMPROVEMENT BONDS.
UM, WE HAD THE SALE FOR THE BONDS, UM, BACK LAST MONTH ON SEPTEMBER 15TH.
UM, THAT WEEK, UH, WAS A GOOD WEEK FOR ISSUERS IN THE MUNICIPAL MARKET.
UM, WE HAPPENED TO PRICE THE DAY BEFORE THE, UH, FED CUT THE INTEREST RATE.
UM, BUT I THINK AS WE'VE TALKED ABOUT IN THE PAST, THE MARKET LARGELY, UH, ANTICIPATES THOSE INTEREST RATE CUTS AND HAD THAT ALREADY PRICED INTO, UM, THE RATES IN THE MARKET.
UM, THAT WEEK OUR TRANSACTION WAS THE LARGEST TEXAS DEAL IN THE MUNICIPAL MARKET FOR THE WEEK.
AND SO WE WERE ABLE TO ATTRACT A LOT OF INVESTORS FOR THE TRANSACTION BECAUSE OF THAT, UH, LARGE INTEREST, UH, THAT WE HAD IN THE TRANSACTION.
UH, WE WERE ABLE TO, UH, REDUCE THE INTEREST RATE THAT WE HAVE TO PAY TO INVESTORS, UM, BY UP TO 10 BASIS POINTS.
UM, DURING THE ORDER PERIOD, BECAUSE OF THE NUMBER OF ORDERS THAT WE BROUGHT IN, UM, WE ADDITIONALLY, UM, NEGOTIATED WITH THE UNDERWRITING TEAM TO, UM, ASK FOR ADDITIONAL ADJUSTMENTS IN THE INTEREST RATE, UM, BECAUSE OF THAT DEMAND THAT WE SAW FOR THE, UH, ORDERS THAT, UH, WERE PUT IN FOR OUR, FOR OUR BONDS.
AND THAT, UH, ADDITIONAL NEGOTIATION SAVED AN ADDITIONAL $55,000, UM, WHICH I KNOW DOESN'T SEEM LIKE A LOT, BUT EVERY BIT COUNTS, UM, AS THESE BONDS ARE GONNA BE PAYABLE WITH, UM, GENERAL FUND RESOURCES.
UM, ALL IN THE TRUE INTEREST COST OF THE BOND TRANSACTION WAS 3.4699999999999998%.
UM, AND, UH, REPRESENTED A SAVINGS OF DEBT SERVICE OF APPROXIMATELY $3 MILLION OVER THE LIFE OF THE BONDS, UM, COMPARED TO, UH, WHAT WE WERE LOOKING AT BEFORE THE DAY OF PRICING BASED ON THE MARKET AND THE, WHAT WE WERE ABLE TO NEGOTIATE.
SO ON SLIDE FOUR, UM, THAT GIVES YOU AN OVERVIEW OF, UH, THE TRANSACTION AND THE FORMAT THAT YOU'RE USED TO SEEING.
UM, AND IT'S OUR GONNA BE OUR GOAL TO, OF COURSE, WE PRESENTED THIS BODY BEFORE THE BOND TRANSACTION AND BEFORE THE ITEM COMES TO COUNSEL FOR APPROVAL BY ORDINANCE.
UM, AND IT'S OUR GOAL TO COME AFTER THE BOND TRANSACTION TO UPDATE, UM, THIS BODY ON THE RESULTS OF THOSE SALES GOING FORWARD.
SO ON SLIDE FIVE, YOU SEE AN OVERALL VIEW OF WHAT THE GENERAL OBLIGATION DEBT SERVICE LOOKS LIKE IN TOTAL.
UM, THE BLUE BAR REPRESENTS OUR EXISTING DEBT SERVICE, UM, WITH THE ADDITIONAL BONDS THAT WE ISSUED.
UM, WE LAYERED ON THE GREEN BAR AND THE SMALL GRAY BAR THAT YOU SEE THERE.
UM, AND WE DO, UM, YOU KNOW, ANTICIPATE DEBT SERVICE DECLINING OVER TIME AS YOU SEE US PAYING OFF THOSE STREETS AND DRAINAGE BONDS.
UM, OF COURSE AS WE CONTINUE ON WITH OUR CAPITAL PROJECTS, WE WILL, UH, BEGIN TO STILL LAYER ADDITIONAL, UM, DEBT SERVICE ON FOR FUNDING THOSE, UH, OTHER TYPES OF IMPROVEMENTS, UM, LIKE FIRE STATIONS, POLICE STATIONS, PARKS AND WHATNOT.
SO MOVING ON TO THE NEXT ITEM, SLIDE SIX.
UH, THIS IS THE COMMERCIAL PAPER SUMMARY FOR THE GENERAL OBLIGATION CREDIT.
UM, WE'RE GONNA TALK ABOUT THE SERIES G TWO TODAY, UH, WHICH IS $125 MILLION COMMERCIAL PAPER LINE, UM, PROVIDED TO US BY BARCLAYS BANK.
AND IF YOU GO ONTO THE NEXT SLIDE, A LITTLE BIT ON BACKGROUND, THE SERIES G TWO PROGRAM SUPPORTS THE CITY'S CAPITAL IMPROVEMENT PLAN FOR THE GENERAL FUND RELATED DEPARTMENTS.
THIS UNDERLYING BANK FACILITY THAT SUPPORTS THE PROGRAM IS EXPIRING IN NOVEMBER.
UM, AND BECAUSE OF THE EXPIRATION, WE ISSUED A REQUEST FOR PROPOSALS FROM OUR QUALIFIED BANKS THAT ARE IN OUR POOL TO PROVIDE US WITH CREDIT.
WE RECEIVED PROPOSALS, UM, THE FINANCE WORKING GROUP MET AND MADE A RECOMMENDATION.
UH, WE'LL BE MAKING A RECOMMENDATION FOR THIS BODY TO VOTE ON, UM, TOMORROW ACTUALLY TO REPLACE, UM, TO, TO, TO REPLACE THE FACILITY WITH A NEW BANK, UM, BASED ON THE PROPOSALS WE RECEIVE, WHICH WOULD BE BANK OF AMERICA, AND IT'LL BE FOR A THREE YEAR TERM.
AND LIKE I MENTIONED THAT RCA IS COMING TO COUNCIL FOR APPROVAL TOMORROW.
ON SLIDE FIVE, UM, THE DEBT, OKAY.
SO THAT, THAT IS KIND OF WHERE WE ARE NOW, BUT, BUT AS WE ISSUE MORE BONDS, I MEAN THAT IT STILL MEAN WE HAVE LIKE A
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KIND OF A GOAL, A A RANGE WHERE WE LIKE TO KEEP THAT NUMBER.I MEAN, IT SEEMS LIKE WE'RE AT ABOUT 350 MILLION.
I MEAN, LIKE WITH ADDITIONAL BONDS THAT, AND, AND WHEN DO WE PLAN TO GO FOR ANOTHER BOND ELECTION? ANOTHER BOND ELECTION? PROBABLY THEY USUALLY HAPPEN ABOUT FIVE YEARS AFTER THE PREVIOUS ONE.
UM, BASED ON HOW QUICKLY WE SPEND DOWN THE ALLOCATION THAT THE CONSTITUENTS HAVE VOTED ON.
UM, IN TERMS OF LAYERING ON ADDITIONAL DEBT, YOU'RE RIGHT, THERE'S, UM, WE DO HAVE A FINANCIAL POLICY IN PLACE THAT WE HAVE A GOAL THAT WE TRANSFER NO MORE, NO MORE THAN A CERTAIN PERCENTAGE OF OUR REVENUES AS DEBT SERVICE.
AND WE'RE IN COMPLIANCE WITH THAT POLICY.
BUT BASICALLY THOSE BLUE BARS WILL, WILL GO UP SOME IN THE OUT YEARS AS WE ISSUE MORE DEBT.
SIMILAR TO HOW WE ADDED THE GREEN AND THE GRAY WITH THIS TRANSACTION, YOU'LL SEE AS WE DO THE NEXT TRANSACTION.
THANK YOU DIRECTOR FOR YOUR PRESENTATION.
AND I APOLOGIZE, I APOLOGIZE IF I MISSED IT, BUT I SEE THAT WE'RE SWITCHING BANKS FOR THE CITY'S COMMERCIAL PAPER YES.
FROM BARCLAYS TO BANK OF AMERICA.
CAN YOU, CAN YOU TELL US WHY? SURE.
SO, UM, BARCLAYS IS, UM, ONE OF THE BANKS A FEW LEGISLATIVE SESSIONS AGO.
THERE WERE TWO SENATE BILLS, SENATE BILL 13 AND 19, UH, WHICH PROHIBIT PROHIBITED, UM, ENTITIES IN THE STATE OF TEXAS FROM DOING BUSINESS WITH COMPANIES THAT BOYCOTT OIL OR FIREARMS. UM, BARCLAYS HAS INDICATED THAT THEY'RE UNABLE TO PROVIDE THESE CERTIFICATIONS, AND SO THEY'RE NO LONGER ABLE TO ENTER INTO NEW AGREEMENTS OR RENEW AGREEMENTS IN THE STATE OF TEXAS.
SO BECAUSE OF THAT, WE HAD TO GO AND IDENTIFY ANOTHER BANK TO REPLACE THEM.
UM, ACTUALLY THE PROPOSALS THAT WE RECEIVE BANK OF AMERICA, UH, WE ARE GETTING MORE FAVORABLE PRICING, UM, WHICH IS ABOUT SEVEN BASIS POINTS LOWER THAN WE WERE PAYING OUR EXISTING PROVIDER, WHICH IS BARCLAYS.
UM, THANK YOU VERY MUCH, DIRECTOR.
AND WE WILL MOVE ON TO, UM, BACK TO THE CONTROLLER'S OFFICE WILL JONES.
UM, LAST MONTH, THE MAYOR PRO TEM MADE A REQUEST THAT WE LOOK AT OTHER CITIES AND ADDITIONAL WAYS THAT THEY GENERATE REVENUE.
AND SO THE CONTROLLER HAS TAKEN A, UH, DIVE INTO THAT AND THAT'S WHAT THIS PRESENT, THAT SETS UP THIS PRESENTATION.
WE'LL GO AHEAD AND GET STARTED.
SO, UH, AS, UH, THE CHAIR EXPLAINED, UH, LAST MONTH WE DID PRESENT ON DISASTER COSTS AND, UH, YOU KNOW, HOW THE CITY WAS BEHIND SOME OF ITS OTHER PEERS IN TERMS OF WHAT WE WERE PUTTING ASIDE FOR, UH, THE BUDGET STABILIZATION FUND.
AND THE QUESTION DID COME UP, WELL, ARE OTHER CITIES DOING SOMETHING THAT WE'RE NOT? UM, SO WE TOOK A LOOK AT THAT.
AND SO, UH, WHAT THIS PRESENTATION WILL SHOW IS AT A HIGH LEVEL, UH, JUST A, A, A LOOK AT THE OTHER, THE REVENUE SOURCES THAT OTHER CITIES BRING IN, UM, AND IDENTIFY SOME OPPORTUNITIES.
UH, NOW WHAT IS, WHAT THIS PRESENTATION DOES NOT DO IS NOT A, A COMPREHENSIVE DEEP DIVE ON ALL OF THE FEES.
UM, AND IT'S ALSO NOT, UH, YOU KNOW, A RECOMMENDATION OF WHICH FEES WE SHOULD PURSUE, BUT IT'S JUST TO KIND OF GIVE YOU AN IDEA OF, YOU KNOW, WHAT SOME OTHER CITIES ARE DOING THAT WE'RE NOT.
SO TO START, UH, WE WANNA TAKE A LOOK AT SOME OF THE, UH, THE TAX RATE.
SO JUST TO, TO BE CLEAR ON THIS, 'CAUSE I KNOW DIRECTOR ABBASI IS GONNA PRESENT ON THE PROPERTY TAX RATE.
THESE RATES WILL MOST LIKELY BE DIFFERENT THAN WHAT SHE'S GONNA SHOW.
THESE ARE THE, THE MOST RECENT PROPOSED, UM, RATES, AND SOME OF THEM HAVE NOT BEEN ADOPTED AS OF YET.
SO DIRECTOR ABCI IS GONNA FOCUS ON, YOU KNOW, LAST YEAR'S RATES THAT ARE ALREADY ADOPTED.
BUT THESE ARE THE, THE LATEST PROPOSED RATES.
UH, SO WHAT YOU CAN SEE HERE IS THAT, UH, FIRST OF ALL, HOUSTON IS, DOES HAVE THE LOWEST RATE.
UM, AND WHEN YOU LOOK AT SOME OF THE OTHER CITIES, UH, YOU KNOW, THREE OF THE CITIES ARE, ARE DECREASING THEIR RATE, UH, COMPARED TO LAST YEAR'S PROPOSED RATE.
UM, AND ALL OF THE CITIES EXCEPT FOR AUSTIN ARE BELOW THE VAR.
SO AUSTIN IS GOING ABOVE THE VAR, SO THEY WILL HAVE TO GO OUT, UH, TO THE VOTERS IN NOVEMBER TO APPROVE GOING ABOVE THAT RATE.
UM, BUT AGAIN, THE POINT HERE, HOUSTON IS THE LOWEST AND WE HAVEN'T CHANGED.
SAN ANTONIO ALSO HASN'T CHANGED THEIR RATE.
UM, BUT YEAH, JUST TO GIVE YOU SOME, AN IDEA OF HOW OUR TAX RATE COMPARES TO SOME OF THE OTHER CITIES.
SO AGAIN, WE, WHEN WE, WHEN LOOKING AT THE, THE REVENUE SOURCES, UH, YOU WILL FIND A LOT OF COMMONALITY AMONGST THE CITIES.
WE ALL TYPICALLY CHARGE, YOU KNOW, THE SAME TYPE OF, UH, YOU KNOW, WE HAVE TAXES, UH, WE HAVE PERMIT FEES, SO THERE'S A LOT OF COMMONALITY AMONG ALL THE CITIES.
UH, BUT WHAT WE DID FIND, AND, UH, OF COURSE ONE OF THEM IS, IS NO SURPRISE A GARBAGE FEE.
WE'RE THE ONLY LARGE CITY THAT DOES NOT CHARGE A GARBAGE FEE.
AND THEN WHEN YOU LOOK AT OTHER
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FEES, LIKE THE CLEAN COMMUNITY ENVIRONMENTAL FEE, IT'S UH, SIMILAR TO THE GARBAGE FEE, UM, THAT, BUT MOST CITIES DO CHARGE.THAT'S FOR LIKE, UM, LITTER, UM, UH, ILLEGAL DUMPING, THOSE TYPE OF THINGS.
SOME, SOME OF THE CITIES THAT'S BAKED INTO THE, THE GARBAGE FEE, OTHER CITIES THAT'S SEPARATE.
UM, AND THEN A BIG ONE IS THE UTILITY TRANSFER.
UH, WE'LL TALK MORE ABOUT THAT.
SOME CITIES, UM, OWN THEIR UTILITY, ELECTRICITY, WATER, OF COURSE WE OWN OUR WATER.
UM, BUT THERE'S SOME TYPE OF REVENUE SHARING THAT HAPPENS BETWEEN THOSE CITIES THAT WE DON'T.
AND THEN BELOW THAT LINE, I'M SHOWING THE TRANSPORTATION FEE AND I SHOW IT BELOW THE LINE.
'CAUSE I DON'T SEE THAT AS NECESSARILY A GENERAL FUND IMPACT.
UM, AND AUSTIN IS THE ONLY CITY THAT THAT CHARGES THAT, AND THEY USE THAT FEE FOR, UH, STREETS STREET REPAIR, UH, THAT TYPE OF THING, WHICH WE DO HAVE FUNDING SOURCES THAT, THAT WE DO THAT.
BUT, UH, THEY DO CHARGE THAT FEE.
SO, UM, SO OTHER, OTHER CITIES RECEIVE HUNDREDS OF MILLIONS OF DOLLARS IN GENERAL FUND REVENUE BASED ON SOME OF THE FEES THAT WE DON'T CHARGE.
UH, AND WHEN YOU LOOK ACROSS THE CITIES, YOU KNOW, IN EXCESS OF A HUNDRED MILLION IN REVENUE THAT SOME OF THESE CITIES ARE RECEIVING FROM THE GARBAGE FEE.
UM, AND I KNOW HOPEFULLY SOON WE'LL SEE THAT STUDY, UM, FROM SOLID WASTE ON, UH, YOU KNOW, TO SEE KIND OF WHERE HOUSTON LIES IN THAT.
UM, AGAIN, I ALREADY TALKED ABOUT THE, THE CLEAN ENVIRONMENTAL FEE.
THE BIG ONE OF COURSE IS THAT UTILITY TRANSFER FEE.
UH, YOU CAN SEE, UH, SAN ANTONIO HAS THE LARGEST ABOUT 504 MILLION.
AND THIS IS BASED ON THEIR LATEST BUDGET.
UH, SO KIND OF COMBING THROUGH THEIR BUDGET AND LOOKING AT THEIR REVENUE SOURCES.
UM, SO SAN ANTONIO, UH, RECEIVES ABOUT 500 MILLION FROM THEIR UTILITY.
SO THEY ACTUALLY RECEIVE MORE REVENUE FROM THEIR UTILITY THAN THEY DO FROM PROPERTY TAX.
SO THAT IS THEIR LARGEST REVENUE SOURCE, UH, FOR SAN ANTONIO.
AND YOU CAN SEE SOME OF THE OTHER CITIES, DALLAS, AUSTIN ALSO RECEIVES, UH, YOU KNOW, REVENUE FROM THEIR WATER AND THEIR ELECTRICITY.
AND THEN SOME OF THE OTHER CITIES THEY DO RECEIVE, UH, YOU KNOW, SOME REVENUE SHARE FROM, FROM THEIR, UH, UTILITY.
UM, WELL, CAN I STOP YOU RIGHT THERE FOR A SECOND? SO WHEN YOU SAY RECEIVES REVENUE OR REVENUE SHARING, LIKE, I MEAN WE OBVIOUSLY HAVE OUR WATER SYSTEM THAT PAYS FOR OUR WATER SYSTEM, RIGHT? THEY ARE TRANSFERRING MORE MONEY LIKE INTO THEIR GENERAL FUND FROM THEIR UTILITIES, CORRECT? FOR RIGHT OF WAY OR FOR FOR WHAT? WELL, IT, IT, IT WORKS IN A SIMILAR WAY.
'CAUSE LIKE WE DO CHARGE A FRANCHISE FEE, FOR EXAMPLE, TO PRIVATE COMPANIES WHERE, YOU KNOW, CENTERPOINT HAS TO SEND US MONEY FOR USING OUR RIGHT OF WAY.
UM, SO IT'S DIFFERENT THOUGH WHEN, WHEN THEY OWN THE UTILITY.
SO IT IS A IT FOR THE RIGHT OF WAY, BUT FOR OTHER GENERAL FUND COSTS.
BUT IT'S, IT'S, IT'S, UH, IT OPERATES IN A SIMILAR WAY, BUT SINCE THEY OWN THE, THE, UM, SINCE THEY OWN THE UTILITY, YOU, YOU DON'T, IT'S NOT CALLED A, UH, FRANCHISE FEE.
UH, SO IT IS, IT IS ESSENTIALLY JUST REVENUE SHARING.
SO I THINK LIKE FOR SAN ANTONIO, IT'S ABOUT 14% OR SO OF THE REVENUE COMES DIRECTLY TO THE GENERAL FUND.
AND SO FOR THOSE THAT WHERE, YOU KNOW, THEY OWN THE WATER, IT, IT IS LITERALLY, YOU KNOW, A, A REVENUE, A TRANSFER OF REVENUE, UH, INTO THE GENERAL FUND.
SO IT'S ALMOST LIKE THE WHAT, BECAUSE LIKE WHAT WE CHARGE FOR WATER IS JUST, AND, AND I'M ASSUMING IT'S A LAW THAT YOU COULD JUST CHARGE FOR WATER WHAT IT COSTS TO PRODUCE THE WATER MM-HMM
SO LIKE, IS THERE SOME KIND OF PROFIT THAT'S GOING BACK TO THE GENERAL, LIKE I DON'T UNDERSTAND HOW, HOW THAT MONEY GENERATED FROM WATER BILLS OR ELECTRIC BILLS OR WHATEVER CAN THEN BE TRANSFERRED OVER TO THE GENERAL COUNTY? YEAH, I MEAN THEY, THEY JUSTIFY FOR, AGAIN, THE RIGHT OF WAY IS A PART OF THAT.
AND THEN ALSO TO, TO RE RECOVER SOME GENERAL FUND COST OR SO.
SO THOSE TRANSFER NUMBERS MM-HMM
ARE TRANSFERRED TO THEIR GENERAL FUNDS.
SO IF YOU LOOK AT SAN ANTONIO'S BUDGET AND THEIR REVENUE, YOU WILL SEE, UH, LIKE A 400 PLUS MILLION FROM THE ELECTRICITY IN ANOTHER, YOU KNOW, A HUNDRED MILLION OR SO FROM THE WATER.
D DOES ANYBODY ELSE HAVE QUESTIONS ON THIS SPECIFICALLY? MAYOR, I HAVE SPECIFIC QUESTION.
SO IS THAT, ARE THAT, IS THAT ADDITIONAL MONEY FOR LIKE THE MAINTENANCE OF THEIR WATER SUPPLY OR THE HOW THEY PROVIDE THE WATER? BECAUSE I'M, I THOUGHT WE COULD ONLY CHARGE WHAT IT COSTS TO DELIVER THE WATER.
SO WHERE IS THAT ADDITIONAL MONEY THAT'S BEING TRANSFERRED TO THEIR GENERAL FUND COMING FROM? UM, SO AGAIN, IT, IT IS, IT OPERATES IN A SIMILAR WAY TO, UH, FOR, FOR THE RIGHT TO USE LIKE THE, THE, THE RIGHT OF WAYS.
BUT ALSO, UH, FROM WHAT I READ FOR SOME OF THE CITIES, IT RECOVERS, UH, SOME COST, UH, FROM THE, THAT, YOU KNOW, THE GENERAL FUND SUPPORTS THOSE, UH, THOSE FUNDS.
SO, UM, IT'S, YOU KNOW, SO ALL THE REVENUE IS COLLECTED IN THOSE ENTERPRISE FUNDS BASED ON WHATEVER THOSE
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FEES ARE.BUT THAT IS, IT IS, IT IS BUILT INTO THE STRUCTURE THAT, YOU KNOW, WHATEVER PERCENTAGE IS GONNA BE TRANSFERRED.
IT, IT'S, IT'S A PART OF THE, UH, I, I DON'T WANT TO SAY COVENANT, BUT IT'S, IT, IT, IT'S BUILT INTO THE STRUCTURE OF HOW THEY OPERATE.
UM, SO YOU THINK, IS IT LIKE MAINTEN LIKE TO MAINTAIN THEIR WATERS SOURCE OR THEIR UTILITY? NO, I MEAN IT'S FOR THE BENEFIT OF, IT'S FOR THE BENEFIT OF THE GENERAL FUND SO THAT IT, IT DOESN'T STAY IN THE ENTERPRISE FUND, WHATEVER THAT PERCENTAGE IS, COMES DIRECTLY TO THE GENERAL FUND.
SO WHATEVER THEY NEED FOR MAINTENANCE AND EVERYTHING, IT'S ALREADY FACTORED INTO SEPARATE AND APART FROM THAT TRANSFER THAT COMES TO THE GENERAL FUND.
SO THEY CAN USE THAT IN THEIR GENERAL FUND FOR PUBLIC SAFETY OR WHATEVER THEY SEE FIT.
COUNCIL MEMBER FLICKINGER ON THIS, ON THIS SPECIFIC ISSUE, SORRY, I KIND OF GOT US OFF TRACK WITH THIS UTILITY TRANSFER.
SO IT'S 504 MILLION IN THE TRANSFER, THAT'S 504 MILLION ABOVE AND BEYOND THE COST TO DELIVER THOSE SERVICES TO THE CITIZENS THAT THEY'RE TRANSFERRING IN GENERAL REVENUE? YEAH.
UM, SO IF WE, WE GO TO THE, THE NEXT SLIDE.
UH, AGAIN, THIS IS JUST ANOTHER WAY OF LOOKING AT, YOU KNOW, THE, THE REVENUE SOURCES THAT THEY GENERATE, UH, FROM, FROM THOSE, UH, YOU KNOW, THE GARBAGE FEE AND FROM THE UTILITY TRANSFER.
UM, OF COURSE YOU CAN SEE HOUSTON IS A ZERO, SAN ANTONIO AGAIN, THAT IT IS REALLY, THEIR UTILITY IS REALLY HUGE, SO THEY GET A LOT OF MONEY FROM THEIR ELECTRICITY.
UM, BUT YOU CAN SEE ACROSS THE OTHER CITIES THE REVENUE THAT THEY GENERATE, UH, FROM THESE FEES.
AGAIN, SO JUST TAKING ANOTHER LOOK AT, UH, UH, HOW SOME OF THESE FEES OPERATE.
SO LOOKING AT THE, THE SOLID WASTE FEE, OF COURSE, HOUSTON ZERO.
SO LOOKING AT AROUND THE AVERAGE OF WHAT SOME OF THE CITIES CHARGE, IF YOU'RE LOOKING AT ABOUT $33, UM, AND AGAIN, YOU KNOW, LET'S NOT GET TIED TO THAT NUMBER.
I KNOW SOLID WASTE IS DOING THEIR OWN STUDY, BUT IF YOU ARE LOOKING AT AN AVERAGE OF $33, UM, HOUSTON COULD GENERATE ABOUT 164 MILLION.
AND THAT AGAIN, IS ASSUMING ABOUT 415,000 HOUSEHOLDS.
AGAIN, THAT NUMBER WILL DEPEND ON WHATEVER THE STUDY SHOWS.
THIS IS JUST WHAT WE ARE USING.
UM, AND THEN AGAIN, THAT CLEAN ENVIRONMENTAL FEE, UM, U UTILITY TRANSFER, AGAIN, IT, IT VARIES.
UM, BUT AGAIN, HOUSTON IS THE ONLY MAJOR CITY THAT IS NOT, UH, TRANSFER UTILITY REVENUES TO THE GENERAL, TO THE GENERAL FUND.
UM, AND AGAIN, WE TALKED ABOUT THAT TRANSPORTATION FEE THAT AUSTIN CHARGES THAT THEY USED FOR, UM, FOR STREETS, UH, STREET PROJECTS, UH, THAT, THAT GENERATES ABOUT A HUNDRED MILLION FOR THEM THERE.
SO KIND OF IN WRAPPING IT UP, UM, AGAIN, WE TALKED LAST MONTH ABOUT, UH, HOW, HOW HOUSTON IS VULNERABLE TO NATURAL DISASTERS AND NOT HAVING ENOUGH, UH, SET ASIDE FOR THAT.
BUT HOUSTON, AGAIN, WE HAVE THE LOWEST PROPERTY TAX, WE JUST TALKED ABOUT THAT.
UM, ALL CITIES DO UNDER OPERATE UNDER THE REVENUE CAP.
UM, AND WE ARE SEEING, UH, LIKE I SHOWED EARLIER WHERE SOME CITIES ARE, ARE, YOU KNOW, DECREASING THEIR RATES AS WELL.
NOW, UM, THERE ARE A NUMBER OF FEES THAT ALL, UM, MAJOR TEXAS CITIES OTHER THAN HOUSTON CHARGE.
WE TALKED ABOUT THE GARBAGE FEE, WE TALKED ABOUT THE CLEAN COMMUNITY FEE, AND OF COURSE WE TALKED ABOUT THE UTILITY SHARE THAT THEY HAVE FOR THOSE THAT OWN THEIR UTILITIES.
UM, CHARGING FEES IN LINE WITH OTHER TEXAS CITIES COULD FREE UP ABOUT, YOU KNOW, 200 MILLION OR SO.
OUR SOLID WASTE DEPARTMENT, WE HAVE A BUDGET OF A HUNDRED MILLION.
UM, SO IF WE WERE ABLE TO MOVE TOWARDS A FEE, WE COULD MOVE THOSE COSTS OUT OF THE GENERAL FUND.
UM, AND SO AGAIN, OTHER, THERE ARE SOME OTHER FEES THAT MAY NOT IMPACT THE GENERAL FUND NECESSARILY THAT WE SAW, LIKE WITH THE TRANSPORTATION FEE.
AND I BELIEVE THAT CONCLUDES MY PRESENTATION.
ANY, ANY OTHER QUESTIONS? THANK, THANK YOU WILL VERY MUCH FOR PUTTING THIS TOGETHER.
TALK ABOUT THAT TRANSPORTATION FEE.
IS THAT FOR PEOPLE COMMUTING TO AUSTIN THAT PAYS THAT? OR DOES EVERYBODY IN AUSTIN PAY THAT? EVERYBODY PAYS THAT.
IT'S, IT IS CHARGED ON THEIR, UH, UTILITY BILL.
SEE, I PRINTED THAT OUT 'CAUSE I I KNEW YOU WERE GONNA ASK THAT.
SO IT'S A FIXED FEE ASSESSED TO RESIDENCE AND VARIABLE FEE ASSESSED TO BUSINESSES BASED ON THE TRAFFIC LEVELS THEY GENERATE, UH, THE FUND IT FUNDS, STREET SIDEWALKS, MAINTENANCE AND REPAIR, ANNUAL STREET OVERLAY AND STRIPPING.
UH, SO YEAH, IT IS A, IT'S A MONTHLY FEE.
UM, AND IT VARIES BETWEEN, YOU KNOW, BASED ON HOW MUCH TRAFFIC THEY ESTIMATE YOU GENERATE.
AND I DON'T KNOW HOW THEY DETERMINE THAT, BUT YEAH, IT IS A MONTHLY FIXED FEE FOR PER HOUSEHOLD.
AND THEY ALSO HAVE A DRAINAGE UTILITY
[00:25:01]
FEE AS WELL.HOW DO THEY CHARGE THAT TRANSPORTATION FEE? THEY PUT IT ON WHAT BILL? IT'S ON THE UTILITY BILL, SO PROBABLY, YEAH, WELL THEY OWN THEIR UTILITY, SO YEAH, EITHER ELECTRICITY BILL.
ON THE FEES THAT ARE SHOWN HERE ON THIS SLIDE, ARE ANY OF THESE RECENTLY ESTABLISHED THAT OTHER CITIES HAVE, UH, UTILIZED OR ARE THESE ALL LONGSTANDING FEES? UH, THESE ARE PRETTY MUCH LONGSTANDING FEES.
THEY, THEY'VE ALL HAD GARBAGE FEES.
UM, I'M PRETTY SURE ON THE ENVIRONMENTAL FEE AND, AND THE UTILITY TRANSFER HAS BEEN HAPPENING.
UM, I MEAN, I, I COULD GO BACK AND LOOK, BUT IT, THEY'RE NOT NEW.
COUNCIL MEMBER FLICKINGER, THE CLEAN COMMUNITY FEE, HOW'S THAT CHARGED? UM, A CLEAN COMMUNITY FEE, LET'S SEE, IT'S A FIXED FEE CHARGED A RES, UH, RESIDENTIAL AND COMMERCIAL UTILITY CUSTOMERS TO FIND CODE ENFORCEMENT ACTIVITIES.
THIS IS SPECIFIC TO AUSTIN WITH AUSTIN DEVELOPMENT.
UM, LET'S SEE, I DON'T SEE WHERE IT SAYS IS THAT ON A, A WATER OR ELECTRIC BILL AS WELL? I'M TRYING, THIS A S ARE PRESENT 10% MONTH INCREASE.
THE RATE INCREASE PROPOSED REMAIN FLAT, I WOULD ASSUME.
SO IT DOESN'T SAY IT EXPLICITLY HERE, BUT I, I BELIEVE SO AS WELL.
YOU KNOW, YOU HAD A NOTE IN HERE THAT AUSTIN'S ONLY CITY THAT'S GONE TO VOTERS TO EXCEED ITS CAP.
RIGHT? HOUSTON WENT TO THE VOTERS TO INCREASE THE, NO, I'M TALKING ABOUT FOR THIS, UH, SPECIFIC, UH, TAX RATE.
SO THEY'RE PROPOSING A TAX RATE THAT'S HIGHER THAN OKAY.
AND WE'RE ALLOWED AT ANY TIME WE WANT TO GO TO THE VOTERS AND SAY, WE WANNA RAISE YOUR TAXES MORE THAN THE CAP.
IF WE PROPOSE A RATE THAT'S HIGHER THAN THE BAR, WE WOULD GO TO THE VOTERS AS WELL.
THANK YOU WILL FOR THE PRESENTATION.
I'VE GOT A FEW QUESTIONS FOR YOU.
LOOKING AT SLIDE NUMBER, I GUESS IT'S TWO, UM, HIGH LEVEL REVIEW BULLET POINTS DOWN AT THE BOTTOM.
WHAT THIS IS, IT SAYS IT COMPARES KEY REVENUE SOURCES SUCH AS PROPERTY TAX.
UM, OF COURSE THE PROPERTY TAX IS A FUNCTION OF THE TAX RATE AND PROPERTY VALUATIONS.
BUT IN YOUR PRESENTATION, YOU DON'T MENTION PROPERTY VALUATIONS.
IT'S IN THE NEXT PRE IT'S IN THE NEXT PRESENTATION.
SO I, I KNEW DIRECTOR BASQUE WAS ALSO PRESENTING ON PROPERTY TAX, SO MY FOCUS WAS MORE ON THE REVENUE.
I DIDN'T WANNA FOCUS TOO MUCH ON PROPERTY TAX KNOWING THAT SHE'S GONNA DO THE SAME.
BUT THE REVENUE IS A FUNCTION OF, OF, IN PART, UH, PROPERTY VALUATIONS.
LET ME ASK YOU ABOUT SLIDE NUMBER THREE.
I GUESS IT IS, UM, COLUMN FIVE, VOTER APPROVAL RATE, THAT THAT IS THE, THAT IS THE HIGHEST RATE A CITY CAN CHARGE WITHOUT GOING TO THE VOTERS FOR APPROVAL.
AND THEN IN THE COLUMN NEXT TO THAT, YOU'VE GOT FOR HOUSTON AT LEAST, UM, A TRIANGLE POINTING DOWN.
SO, UH, LAST YEAR'S TAX RATE IS $3 AND 42 CENTS LESS THAN THE MAXIMUM WE COULD HAVE CHARGED LAST YEAR WITHOUT GOING TO THE VOTERS.
WELL, FOR, FOR THIS YEAR, YES.
ALRIGHT, BECAUSE AS I LOOK AT THIS SLIDE, IT LOOKS LIKE WE'RE WE'RE SOMETHING IS BEING REDUCED AND IN ACTUALITY, UH, THERE'S, IT'S NOT A REDUCTION.
UH, THE PROPOSAL I THINK IS TO KEEP IT WHERE IT WAS LAST YEAR.
IF YOU LOOK AT, SO IF YOU LOOK AT WHERE I SHOW THE TAX RATE IN THE RED BOX, RIGHT? IF YOU JUST LOOK RIGHT NEXT TO IT, IT CLEARLY SAYS NO CHANGE.
SO THAT LAST ONE IS COMPARING IT TO THE STATE CAP SAYING THAT WE ARE THAT MUCH BELOW THE STATE CAP, BUT WE'RE NOT CHANGING FROM WHERE WE WERE LAST YEAR.
UM, LET ME ASK YOU ABOUT THE REVENUE SHARING ASPECT.
AND I'LL GO TO THE, I DON'T KNOW WHAT SLIDE IT IS.
IT'S CHARGING FEES IN LINE WITH OTHER TEXAS CITIES WOULD CREATE OR FREE AT LEAST 200 MILLION IN ANNUAL REVENUE.
AND YOU STATE ON HERE, HOUSTON IS THE ONLY MAJOR TEXAS CITY DOES, DOES NOT TRANSFER UTILITY REVENUES TO ITS GENERAL, GENERAL FUND.
DO YOU KNOW WHAT IS DIFFERENT ABOUT IN, IN THE LANGUAGE, THE ENABLING LEGISLATION, UH, OF THEIR ENTERPRISE FUNDS VERSUS OURS? YEAH, AND I, I THINK IT HAS MORE TO DO WITH LIKE BOND COVENANTS AND SO I'M SURE HOUSTON PUBLIC WORKS, UH, COULD EXPLAIN THAT BETTER.
BUT THERE MAY BE SOME LANGUAGE IN OUR BOND COVENANTS THAT RESTRICT US FROM, FROM DOING THAT.
UM, BUT IT WOULD REQUIRE MORE OF A LEGAL REVIEW.
THIS IS NOT THE FIRST TIME THIS HAS COME UP EITHER.
I KNOW THE CITY HAS KIND OF EXPLORED THIS BEFORE.
UH, SO IT WOULD REQUIRE, YOU KNOW, LEGAL TO KIND OF TAKE A LOOK AT IT.
UM, AND TO MAKE SURE WE GO THROUGH THOSE BOND COVENANTS AND MAKE SURE WE
[00:30:01]
WOULDN'T BE VIOLATING, YOU KNOW, THE BOND COVENANTS IN ORDER TO GET THAT REVENUE OVER.UM, I DON'T THINK IT'S MORE, I DON'T THINK IT'S A STATE LEVEL.
IT HAS MORE TO DO WITH OUR, OUR BOND COVENANTS.
AND HAVE YOU TALKED TO ANYBODY IN LEGAL ABOUT THIS? UM, NOT RECENTLY, BUT LIKE I SAID, THIS CAME UP A FEW YEARS AGO AND I BELIEVE IT MADE ALL THE WAY TO LEGAL.
I'M NOT SURE, UM, WE WOULD HAVE TO CIRCLE BACK AND SEE.
AND LAST QUESTION, AND I WON'T HAVE TO GO BACK IN THE QUEUE DOWN AT THE, AT THE BOTTOM IN THE FINE PRINT A LITTLE ASTERISK, YOU SAY ADDITIONAL LEGAL ANALYSIS REQUIRED TO CONSIDER PURSUE THIS OPTION MAY BE LESS VIABLE IN HOUSTON.
IS THAT RIGHT? THAT'S CORRECT.
AND THAT'S MUCH, MUCH SMALLER PRINT THAN THE BIG LANGUAGE AT THE TOP THAT SAYS, UH, CHARGING FEES IN LINE WITH OTHER TEXAS CITIES WOULD GIVE US AT LEAST 200 MILLION A YEAR.
WE DON'T EVEN KNOW IF WE COULD DO THAT.
IS THAT RIGHT? UM, I MEAN, IT, IT WOULD REQUIRE LIKE SOME, UH, SOME LEGAL OPINION.
UM, SO YEAH, I MEAN IT, LIKE I SAY, IT COULD BE POSSIBLE.
COULD YOU GO BACK TO THE SLIDE WITH THE SHOWING ALL THE TAX RATES PLEA, UM, THERE.
SO WHILE, WHILE HOUSTON COULD, YOU KNOW, THE VR WOULD ALLOW THE $3 42 CENTS INCREASE NOT IN HOUSTON BECAUSE WE HAVE TO GO BY OUR VOTER IMPOSED REVENUE CAP.
WHICH IS AN EVEN LOWER AMOUNT, WHICH WE'LL GET INTO IN THE NEXT PRESENTATION.
UM, COUNCIL MEMBER CAYMAN OR THANK YOU CHAIR.
UM, WILL, THANK YOU SO MUCH FIRST, UM, BECAUSE WE DISCUSSED IT LAST WEEK AND YOU REFERENCED IT THIS WEEK, UH, IT IS STILL ONE OF Y'ALL'S RECOMMENDATIONS THAT WE ALSO INCREASE THE BUDGET STABILIZATION OR RAINY DAY FUND.
IS THAT CORRECT? THAT IS CORRECT.
AND, UM, THE, WELL GOING TO, I BELIEVE THERE'S BEEN SOME QUESTIONS ON THE UTILITY FEES INCLUDING WATER.
IF WE COULD GO TO THAT SLIDE, THE UTILITY TRANSFER FEE, MY UNDERSTANDING UNDER STATE LAW IS THE CITY CITIES CAN ONLY RECOUP COSTS FOR ACTUAL, UM, EXPENDITURES OR THE COST OF DELIVERING THAT SERVICE.
WE CANNOT NECESSARILY MAKE A PROFIT ON THAT.
SO WHEN WE'RE TALKING ABOUT INCREASING THE UTILITY TRANSFER FEE FOR WATER, WHERE DO WE MAKE THAT UP? UM, YEAH, I MEAN I WOULD HAVE TO PROBABLY DIG DEEPER TO SEE, UH, MORE OF THE LANGUAGE THAT THE OTHER CITIES ARE USING FOR THAT.
UM, BUT YEAH, UH, THAT WOULD, I WOULD HAVE TO DIG A LITTLE DEEPER JUST TO GET SOME OF THE SPECIFICS.
'CAUSE AGAIN, IF THERE IS MONEY THAT WE'RE EXPENDING THAT WE'RE NOT RECOUPING IN TERMS OF SERVICE PROVIDED, UM, I'M CERTAINLY INTERESTED IN THAT AND I APPRECIATE WHAT COUNCIL MEMBER RAMIREZ POINTED OUT THAT WE MAY ALREADY BE GETTING TO THAT POINT, BUT THAT WOULD BE HELPFUL TO SEE IF WE'RE MISSING SOMETHING THERE.
THANK YOU COUNCIL MEMBER HUFFMAN.
AND SO WE LOOK AT THESE DIFFERENT FEES THAT OTHER CITIES CHARGE THAT CURRENTLY THE CITY OF HOUSTON DOESN'T RIGHT NOW, BUT I THINK WHEN WE HEAR THINGS LIKE A GARBAGE FEE, YOU KNOW, THE GENERAL PUBLIC THINKS IF I PAY THIS FEE, I'M GONNA SEE BETTER SERVICES, I'M GONNA SEE A BETTER RESULT.
AND WE'RE NOT NECESSARILY TALKING ABOUT THAT, RIGHT? BECAUSE THIS IS JUST TALKING ABOUT FREEING UP THE GENERAL FUND, RIGHT? CORRECT.
YEAH, AND I THINK TO TO YOUR POINT, UH, WHATEVER WE DO WITH THE GARBAGE FEE, WE WILL NEED TO BE VERY CLEAR THAT, UM, IF WE CHARGE A GARBAGE FEE, YOU'RE NOT GONNA SEE AN IMMEDIATE, UH, IMPROVEMENT IN SERVICES, UH, BECAUSE YOU HAVE TO BUILD UP THE CAPITAL TO BE ABLE TO COVER YOUR EXISTING COSTS, AND YOU HAVE TO PROVE THAT THE REVENUE CAN COVER YOUR COSTS AND BEFORE YOU CAN START EXPANDING.
SO YEAH, IT IS, IT IS JUST TO COVER THE COSTS BEFORE YOU CAN REALLY START EXPANDING.
SO WE, WE WOULD HAVE TO, THAT COMMUNICATION WOULD BE IMPORTANT, UH, IF WE EVER GET TO THAT POINT.
UH, WE ALL KNOW THAT, THAT PEOPLE DON'T JUST PAY CITY TAXES, PEOPLE PAY COUNTY TAXES, PEOPLE PAY ISD TAXES, PEOPLE PAY HOUSTON COMMUNITY COLLEGE TAXES, PEOPLE PAY HOSPITAL DISTRICT.
SO MY TEAM DID A LITTLE BIT MORE OF A DEEP DIVE INTO WHAT THOSE OTHER TAX RATES ARE AND VALUATIONS, RIGHTLY SO.
COUNCIL MEMBER RAMIREZ ARE A BIG PART OF THIS, AND WE'LL GO OVER THOSE IN THE NEXT PRESENTATION.
BUT JUST, JUST TO GIVE YOU A LITTLE BENEFIT OF THE RESEARCH THAT WE DID, HE SHOWED YOU THE, THE SLIDE ON THE CITY TAX RATE WHERE WE'RE AT THE BOTTOM.
NOW AUSTIN DOES HAVE TO PASS THEIR, THEIR, THEIR VALUATIONS ARE HIGHER.
[00:35:01]
WILL HAVE TO PASS THAT RATE ON THE PRIMARY ISD TAX RATE.WE ARE AT THE BOTTOM OF THE, AND THIS WAS DALLAS FORT WORTH, SAN ANTONIO, AUSTIN, HOUSTON, THE COUNTY RAT TAX RATE.
WERE AT THE TOP OF THOSE CITIES, THE HOSPITAL HEALTH TAX RATE HOSPITAL DISTRICT.
WERE ABOUT THIRD IN LINE WITH THOSE CITIES, COMMUNITY COLLEGE TAX RATES AT THE BOTTOM.
SO IT'S AN OVERALL TAX BURDEN, BUT OF ALL THOSE CATEGORIES I MENTIONED WITHOUT THE COUNTY, WE'RE AT THE BOTTOM OR NEXT TO THE BOTTOM OR YOU KNOW, IT, IT'S NOT LIKE WE ARE JUST LOW IN THE CITY TAX RATE IS WHAT I'M TRYING TO SAY.
IT'S THE VALUATIONS MATTER AND WE'LL GET INTO THAT AND PROBABLY THE MOST CLOSELY ALIGNED VALUATIONS ARE WITH DALLAS, WHERE WE ALSO HAVE A LOWER RATE THAN THE ON ALL OF THOSE CATEGORIES.
SO THANK YOU WILL, THIS IS ALL VERY IMPORTANT INFORMATION.
UM, WE'RE NOT TRYING TO BE LIKE EVERY OTHER CITY.
WE'RE HOUSTON, WE'RE OUR OWN CITY, BUT WE DO HAVE TO BE REALISTIC ABOUT THE REVENUE SIDE OF THE EQUATION IN, IN, UM, WITH, WITH EXCEEDING, UM, YOU KNOW, WITH GROWING EXPENSES.
ALRIGHT, SO THANK YOU VERY MUCH.
AND NEXT I WILL CALL UP FOR ADDITIONAL TALK ON THE TAX RATE, UH, MELISSA DEBOSKY, FINANCE DIRECTOR.
UH, SO ON SLIDE TWO, I'M GONNA TALK A LITTLE BIT ABOUT THE, UM, DIFFERENCES BETWEEN THE LOCAL REVENUE CAP LIMITATION AND THE STATE REVENUE CAP LIMITATION AS IT PERTAINS TO PROPERTY TAX.
UH, SO ON OUR LOCAL REVENUE CAP LIMITATION BACK IN 2004, PROPOSITION ONE WAS ENACTED BY VOTERS THAT LIMITS THE CITY'S PROPERTY TAX REVENUES TO THE LOWER OF THE PRIOR YEARS.
CAPPED AMOUNT INCREASED BY POPULATION AND INFLATION GROWTH, OR THE PRIOR YEAR'S, ACTUAL REVENUES INCREASED BY 4.5%, WHICHEVER THOSE TWO IS LOWER.
TWO YEARS LATER, PROPOSITION H WAS ENACTED BY VOTERS IN 2006 THAT PERMITTED THE CITY TO ADD $90 MILLION TO ANY BASE USED TO CALCULATE REVENUE LIMITATION, UH, TO BE SPENT ON PUBLIC SAFETY PURPOSES.
SO THAT'S HOW WE CALCULATE OUR LOCAL CAP.
ON THE NEXT SLIDE, UH, WE NOW ALSO CONTEND WITH THE STATE REVENUE CAP.
UM, THE STATE REVENUE CAP, I SHOULD SAY, HAS BEEN IN PLACE, UM, FOR MANY DECADES.
UH, BUT A BIG CHANGE WAS MADE BACK IN 2019 TO MAKE THAT CAP MORE RESTRICTIVE.
UM, THAT, UH, LEGISLATIVE SESSION BACK IN 2019, SENATE BILL TWO WAS PASSED.
UM, A NUMBER OF THE TERMS IN THE, IN THE STATE TAX CODE WERE RENAMED, BUT THE MOST IMPACTFUL CHANGE, UM, FOR US AND OTHER CITIES AND COUNTIES AROUND THE STATE WAS THAT IT REDUCED THE MULTIPLIER FROM 8% TO 3.5% MAKING THE STATE CAP MORE RESTRICTIVE THAN IT HAD BEEN HISTORICALLY.
UM, WHEN YOU, WHEN WE CALCULATE THE TAX RATE ANNUALLY, WE HAVE TO CALCULATE ALL THREE WAYS, THE STATE CAP AND THEN THE TWO LOCAL CAP CALCULATIONS, AND WE HAVE TO COMPLY WITH THE LOWEST OF THOSE THREE CALCULATIONS WHEN DETERMINING WHAT OUR TAX RATE CAN BE.
SO ON SLIDE FOUR, THIS GIVES YOU A VIEW OF HISTORICALLY WHAT OUR PROPERTY TAX RATES HAVE BEEN.
UM, GOING BACK TO THE MID NINETIES, UM, YOU CAN SEE WHEN PROPOSITION, UM, ONE AND H WAS VOTED IN IN 2004, BUT WE HAD NOT YET HIT THE CAP, WHICH MEANS WE HADN'T FULLY BUDGETED THE ALLOWABLE AMOUNT OF PROPERTY TAXES UNTIL FISCAL YEAR 15.
IN FISCAL YEAR 15, TAXABLE VALUATION GREW, UM, BY SUCH AN AMOUNT THAT IN ORDER TO COLLECT OUR PROP ONE PLUS H AMOUNT OF REVENUE THE CITY HAD TO REDUCE THE TAX RATE TO COMPLY WITH THE CAP.
UH, SO THAT'S THE YEAR WE STARTED LOWERING THE TAX RATE.
AND AS YOU CAN SEE, WE'VE CONSISTENTLY LOWERED THE TAX RATE, UM, NINE OUT OF 11 YEARS LEADING UP TO, UM, THIS YEAR WE'RE, UH, PROPOSING YOU CAN SEE TO KEEP THE TAX RATE THE SAME, UH, AS WE DID IN, UM, TAX YEAR 25 AND TAX YEAR 24 AT A RATE OF 51.92 CENTS.
UM, AS DEPUTY CONTROLLER JONES MENTIONED IN HIS PRESENTATION, UM, THESE RATES ARE, UH, TAX YEAR 20 FOURS RATES, WHICH ARE LAST YEAR'S RATES.
UH, FOR US, WE HAVE THE SAME RATE AS LAST YEAR.
SO YOU SEE THE 51 9 1 9, UH, AND THESE ARE HOW THE RATES COMPARE ACROSS THE STATE.
UM, AS YOU SAW, BASED ON HIS PRESENTATION, THERE IS A LITTLE BIT OF VARIABILITY FROM LAST YEAR'S RATES TO THIS YEAR'S RATES BASED ON WHAT SOME OF THE OTHER CITIES ARE PROPOSING.
UM, BUT THE TREND REMAINS THE SAME.
SLIDE SIX, UH, GIVES YOU A SNAPSHOT, AND I THINK THIS IS WHAT THE CONTROLLER WAS ALLUDING TO LAST MONTH WHEN VICE, UH, SORRY, MAYOR PRO TEM WAS, UH,
[00:40:01]
ASKING ABOUT WHAT OTHER, UH, CITIES DO AS FAR AS REVENUES.UM, THIS SIMILAR GRAPH WAS PRESENTED ABOUT A YEAR AGO AT THIS TIME OF YEAR, SHOWING WHAT OTHER, UM, TYPES OF TAXES AND FEES OTHER CITIES COLLECT AND HOW THEY TRANSLATE INTO, UM, GENERAL FUND REVENUE FOR THEM.
FOR THIS SLIDE, UM, WE KIND OF LOOKED AT IT A LITTLE BIT OF A DIFFERENT ANGLE THAN THE CONTROLLER'S OFFICE PRESENTED.
THEY PRESENTED IT IN TERMS OF A DOLLAR AMOUNT.
WE BASICALLY TOOK IT AND TRIED TO CALCULATE TO SHOW AN APPLES TO APPLES COMPARISON OF IF THESE FEES WERE LEVIED AS A TAX RATE, WHAT WOULD THE SYNTHETIC RATE COME OUT TO BE AND HOW DOES THAT COMPARE TO YOUR RATE THAT YOU SEE ON YOUR PROPERTY TAX BILL.
SO THIS IS BASICALLY TAKING THE AMOUNT OF REVENUE THAT COMES INTO THE GENERAL FUND AND APPLYING THAT REVENUE COMPARED TO EACH OF THE CITY'S TAXABLE VALUATION TO GENERATE THE, THE RATES THAT YOU SEE ON THE GRAPH.
THE BLUE BAR IS THE PROPERTY TAX RATE.
UH, THE GREEN BAR REPRESENTS WHAT A EQUIVALENT OF A TAX RATE WOULD BE FOR, UH, FOR, UM, A HOUSEHOLD FOR THE GARBAGE FEE.
UM, THE YELLOW BAR REPRESENTS THE AMOUNT OF MONEY THAT THOSE CITIES TRANSFER FROM, UH, THEIR WATER UTILITY TO THE GENERAL FUND.
UH, AND THE ORANGE REPRESENTS AN ELECTRICITY UTILITY.
UM, YOU CAN SEE AS THE CONTROLLER'S OFFICE MENTIONED, SAN ANTONIO, UH, GETS THE LARGEST AMOUNT OF TRANSFER FROM THEIR UTILITY, UH, INTO THE GENERAL FUND.
SO BASICALLY YOU JUST TOOK THE, LIKE THE, THE, THE NUMBER OF CENTS PER A HUNDRED DOLLARS VALUATION AND ADDED ON LIKE, AS IF THAT WAS PART OF THE PROPERTY TAX.
I KNOW WHAT YOU'RE DOING ON SLIDE SEVEN.
UM, I THINK THIS IS GETTING TO WHAT COUNCIL MEMBER RAMIREZ WAS ASKING ABOUT, UH, RELATED TO ASSESSED VALUATION SINCE, UM, TAX RATE IS ONLY ONE COMPONENT OF YOUR BILL AND ACTUALLY THE CITY'S TAX RATE IS ONLY GENERALLY ABOUT QUARTER OF YOUR TAX BILL OVERALL WITH SCHOOL DISTRICT BEING THE MAJORITY OF IT COUNTY AND OTHER TAXING JURISDICTIONS AS WELL.
UM, BUT THIS IS JUST A COMPARISON SHOWING FOR THE CITY PORTION OF THE TAX BILL IN THESE TAXING JURISDICTIONS TAKING LAST YEAR'S, UH, MOST RECENTLY ADOPTED TAX RATE AND APPLYING THAT TO THE AVERAGE HOMESTEAD TAXABLE VALUE OF THOSE CITIES AND SHOWS APPROXIMATELY WHAT AN AVERAGE TAX BILL WOULD BE IN EACH OF THOSE CITIES.
AND YOU CAN SEE HOW HOUSTON COMPARES TO THE OTHERS.
AND THIS IS, AGAIN, JUST ON PROPERTY TAX, NOT INCLUDING ANY OF THOSE OTHER FEES THAT WE TALKED ABOUT IN THE PREVIOUS SLIDE.
SO IN THIS CASE, YOU CAN SEE THAT, I'LL JUST USE AUSTIN AS AN EXAMPLE.
EVEN THOUGH THE CITY OF AUSTIN'S TAX RATE IS LOWER THAN THE CITY OF HOUSTON'S BECAUSE THEIR TAXABLE VALUE IS HIGHER, YOU CAN SEE THAT THE AVERAGE, UM, BILL IS ABOUT $800, UM, HIGHER THAN THE CITY OF HOUSTON ON THE, UM, CITY'S TAX SIDE DALLAS.
UM, IF YOU WANNA LOOK AT THAT AS A COMPARISON, EVEN THOUGH THEIR RATE IS SIGNIFICANTLY HIGHER THAN OURS AT AROUND 70 CENTS, UM, YOU KNOW, BECAUSE OF THEIR TAXABLE VALUE, YOU, YOU, YOU CAN SEE THE COMPARISON HERE.
SO GOING ON TO SLIDE SIX, UH, SORRY, SLIDE EIGHT, UM, TALKING ABOUT HOW OUR PROPOSED TAX RATE, UM, IS GOING TO IMPACT OUR BUDGET, LIKE I MENTIONED IN MY MONTHLY FINANCIAL REPORT, UM, THE REPORT GIVEN THIS MONTH DOESN'T CONTEMPLATE ANY OF THE CHANGES THAT WILL BE, UH, NECESSITATED BY, UH, THE TAX RATE THAT WE'RE GOING TO ADOPT.
UM, THAT'LL BE FORTHCOMING IN A FUTURE MO FAR, BUT THIS WILL KIND OF GIVE YOU A PREVIEW OF WHAT WE'RE LOOKING AT.
UM, SO THE PRIOR YEAR TAX RATE, WHICH IS OUR CURRENT PROPOSED TAX RATE OF 51.92 CENTS, UM, YOU SEE THE PROPERTY TAX REVENUE ESTIMATE THAT IT'S GOING TO BRING IN IS 1.45 BILLION, WHICH IS A FIF ABOUT A $53 MILLION VARIANCE TO WHAT WE HAVE IN THE BUDGET FOR PROPERTY TAX.
UM, THIS MEANS THAT WE'RE GONNA HAVE TO DRAW ABOUT $53 MILLION OUT OF FUND BALANCE TO MAKE UP THE DIFFERENCE.
THE NO NEW REVENUE TAX RATE, WHICH IS ONE OF THE RATES THAT WE'RE REQUIRED TO WE'RE WE ARE REQUIRED TO CALCULATE UNDER STATE LAW, UM, IS ACTUALLY HIGHER THAN OUR PROPOSED RATE.
THE NO NEW REVENUE TAX RATE, UM, IS THE RATE THAT THE STATE, UM, BASICALLY THE STATE DESCRIBES IT AS THIS IS THE RATE THAT YOU NEED TO BRING IN THE SAME AMOUNT OF REVENUE AS LAST YEAR IS SORT OF HOW THEY DESCRIBE IT.
UH, EVEN THIS RATE IS, UH, HIGHER THAN OUR PROPOSED RATE AND WOULD GENERATE IF, IF THE CITY, UH, WAS MOVING FORWARD WITH THAT RATE, WHICH THAT'S NOT THE PROPOSED RATE, BUT IF IT WERE, IT WOULD GENERATE 1.478 BILLION OF REVENUE, WHICH IS STILL ABOUT 27 MILLION BELOW OUR BUDGET.
IN ORDER FOR US TO COLLECT OUR BUDGETED AMOUNT OF REVENUE THAT'S ON LINE THREE, THE PROPERTY, UH, THE PROPERTY TAX RATE WOULD HAVE TO BE 53.79 CENTS, WHICH IS ABOUT ROUGHLY 2 CENTS HIGHER THAN OUR PRIOR YEAR TAX RATE.
[00:45:01]
AMOUNT OF REVENUE THAT WE HAVE BUDGETED.SO YOU SEE NO VARIANCE TO BUDGET THE VOTER APPROVAL TAX RATE, WHICH THIS IS THE STATE CAPPED RATE UNDER LAW WITHOUT GOING TO VOTERS, IS ABOUT 55 CENTS AND WOULD ALLOW US TO BRING IN ABOUT $43 MILLION ABOVE THE BUDGETED AMOUNT.
BUT AGAIN, SINCE WE'RE LIMITED TO THE LOWER OF ALL OF THE DIFFERENT CAPS, LIKE COUNCIL MEMBER, CHAIR, ALCORN MENTIONED, UH, REALLY THE MAXIMUM RATE THAT WE'RE LOOKING AT, UM, IS THE, IS THE 53.70 CENTS.
AND AGAIN, I WANNA EMPHASIZE THAT WE'RE NOT PROPOSING TO INCREASE THE TAX RATE.
WHAT THE TAX RATE THAT'S PROPOSED IS THE SAME AS THE CURRENT TAX RATE OF 51.919.
AND FOR CONTEXT PURPOSES, UM, BECAUSE I KNOW WE TALKED ABOUT THIS LAST YEAR AT THIS TIME, ANY ONE PENNY INCREASE TO THE TAX RATE, UM, ALTHOUGH IT'S NOT ON THE SLIDE, IT GENERATES ABOUT $28 MILLION OF ADDITIONAL REVENUE.
AND WHAT THAT MEANS IN TERMS OF AN AVERAGE IMPACT, THE AVERAGE HOMEOWNER, UH, ONE, ONE PENNY INCREASE TO THEIR CITY TAX RATE WOULD MEAN ABOUT $2 AND 85 CENTS A MONTH, UH, ADDITIONAL.
AND THAT'S FOR AN AVERAGE HOME VALUE OF 342,000.
FOR AN AVERAGE OVER 65 HOMEOWNER, IT WOULD BE ABOUT 68 CENTS A MONTH, UM, BECAUSE THEY DO GET THAT OVER 65 EXEMPTION THAT YOU SEE ON THE SLIDE BRINGING DOWN THEIR TAXABLE VALUE.
SO ON SLIDE 10, THIS KIND OF BRINGS IT TOGETHER OF WHAT THE IMPACT TO OUR PROJECTIONS FOR THE FUND BALANCE ARE GOING TO BE.
UM, BASED ON THE MONTHLY REPORT I PRESENTED EARLIER THIS MORNING, THE AUGUST, UM, PROJECTION FROM THE FINANCE DEPARTMENT, UM, HAS A ENDING FUND BALANCE OF $374 MILLION, UH, WHICH REPRESENTS 14.73% OF EXPENDITURES NOT INCLUDING DEBT SERVICE AND PAY AS YOU GO.
UM, WITH THE PROPOSED TAX RATE OF 51 9 1 9, UH, THAT'S GOING TO BRING DOWN OUR REVENUE PROJECTION, UH, BY $53 MILLION BELOW THE BUDGET.
UM, AND THAT WILL BRING OUR FUND BALANCE DOWN TO 321.5 MILLION OR 12.66% OF EXPENDITURES NOT INCLUDING DEBT SERVICE AND PAY AS YOU GO.
UM, REALLY QUICKLY, I BELIEVE ON SLIDE EIGHT AS YOU WERE TALKING, YOU SAID WITH NO, UM, INCREASE IN THE RATE WE WOULD HAVE TO DRAW DOWN, DID YOU SAY 53 MILLION FROM THE FUND BALANCE? CORRECT.
AND WHAT WOULD THAT LEAVE AS THE PROJECTED REMAINDER OF THE FUND BALANCE? SO THAT WILL LEAVE OUR FUND BALANCE AT 321 MILLION, WHICH IS ABOUT 12.66% AND THAT AMOUNT.
SO WE'RE STILL ABOVE THE PERMISSIBLE PERCENTAGE? YES, IT'S STILL, UH, OUR PROJECTION IS THAT IT'S 131 MILLION ABOVE THE 7.5%.
AND, UM, YOU KNOW, I, I KNOW YOU KNEW THIS QUESTION WAS COMING, BUT UM, AS IT RELATES TO THE FINANCIAL POLICIES OF THE CITY, RIGHT, I'M CONTINUING TO ADVOCATE FOR AN INCREASE, UM, IN THE, IN OUR RAINY DAY FUND.
UM, ONE OF THE REASONS WHY IS BECAUSE OF THIS, RIGHT? WE KEEP HAVING TO DRAW DOWN FROM THE GENERAL FUND AND WE NEED DOLLARS PROTECTED, UH, FOR WORST CASE SCENARIOS.
DO WE HAVE A TIMELINE FOR THE, UH, PROPOSED FINANCIAL POLICIES REVIEW? WE ARE STILL FINALIZING A FEW OF THE SECTIONS, UM, PARTICULARLY AS IT PERTAINS TO FINANCIAL REPORTING AS WELL AS THE ECONOMIC DEVELOPMENT POLICIES.
UM, BUT IT, IT WILL BE FORTHCOMING SOMETIME THIS FALL.
AND DOES THAT INCLUDE, UM, GROWTH OF THE BUDGET STABILIZATION FUND AND THE REPLENISHMENT POLICIES? THE POLICY THAT THE POLICY THAT YOU'RE REFERENCING IS IN THE FINANCIAL POLICIES? UM, WHERE WE CURRENTLY ARE IS WE ARE STILL IN SUPPORT OF THE, UH, INCREASING THE MINIMUM FROM THE 20 MILLION OR 1%, INCREASING IT TO 25 MILLION OR 1%.
UM, SO THAT IS SOMETHING THAT WE'RE PLANNING TO PROPOSE.
UM, WE STILL BELIEVE THAT THE, THE TIMELINE FOR REPLENISHMENT WITHIN 365 DAYS IS, UH, PROBLEMATIC GIVEN THE AMOUNT OF TIME IT TAKES US TO RECOGNIZE SOME OF THOSE, UM, REVENUE REIMBURSEMENTS.
AND THEN GOING BACK TO, UM, THE CONSTRAINTS RELATED TO PROP ONE AND PROP H, UM, AS IT PERTAINS TO THE PUBLIC SAFETY EXCEPTION, RIGHT? WE WENT TO THE VOTERS TO ASK FOR A PUBLIC SAFETY EXCEPTION.
AND CAN YOU GIVE A LITTLE BACKGROUND AND CONTEXT AS TO WHAT THE CITY'S INTERPRETATION OF THAT IS, WHY WE MAY BE MAXED OUT THERE? UM, JUST FOR SOME CONTEXT AND EXPLANATION, UNDERSTANDING OF WHAT THE CITY'S OFFICIAL POSITION ON THE PUBLIC SAFETY EXCEPTION IS.
[00:50:01]
SAFETY EXCEPTION WAS APPROVED BY THE VOTERS IN 2006.UM, FOR, LEMME GO BACK TO THE SLIDE ON SLIDE TWO.
IT WAS APPROVED BY VOTERS IN 2006, UH, THAT PERMITS THE ADDITIONAL AMOUNT OF 90 MILLION TO BE ADDED TO ANY BASE USED TO CALCULATE REVENUE LIMITATIONS FOR PUBLIC SAFETY PURPOSES.
SO, UM, WHEN WE LOOK AT PUBLIC SAFETY PURPOSES, WHAT WE SEE AT THE CITY, YOU KNOW, WE GENERALLY ORGANIZE THE BUDGET BOOK.
UM, THERE'S A PUBLIC SAFETY SECTION AND IN THAT SECTION IS, UM, CERTAINLY POLICE AND FIRE.
UH, EVEN THOSE TWO DEPARTMENTS ALONE ARE ALMOST $1.8 BILLION OF THE GENERAL FUND BUDGET.
UM, OVER HALF OF THE $3 BILLION GENERAL FUND BUDGET.
SO ARE WE STILL CONTINUING TO INCLUDE ANNUALLY THAT ADDITION OF THE 90 MILLION TO THE BASE? YES.
THANK YOU MAYOR PRO TEM CASTEX TATUM.
UH, CAN WE GO TO THE COMPARISON OF AVERAGE HOMESTEAD PROPERTY TAXES? UH, SLIDE IS THIS PRE-PRO VALUATIONS AND, AND WHAT PERCENTAGE OF, UM, FOLKS ARE ACTUALLY PROTESTING? AND THEN MY BIG QUESTION IS, I REALLY WANNA KNOW WHAT PERCENTAGE OF OUR PROPERTY TAX IS COMMERCIAL BUSINESSES VERSUS RESIDENTIAL BUSINESSES.
I BELIEVE THAT THESE FIGURES ARE AS OF THE CERTIFIED ROLE.
SO THAT WOULD BE BEFORE THE PROTESTS.
UM, I GUESS WHAT I CAN SAY IS THAT WHEN WE CALCULATE OUR PROPERTY TAX RATE, AND I KNOW THE CONTROLLER'S OFFICE DOES A SIMILAR ANALYSIS, WE LOOK AT WHAT IS THE CERTIFIED ROLE THAT WE RECEIVE FROM THE APPRAISAL DISTRICTS, AND GENERALLY WHAT DO WE EXPECT THAT VALUATION ROLE TO DO? HOW MUCH DO WE EXPECT TO LOSE IN VALUE LOSS FOR HEARINGS OR REFUNDS? HOW MUCH DO WE EXPECT TO GENERATE AN ADDITIONAL DELINQUENT PAYMENTS, FOR EXAMPLE? SO ALL OF THOSE VARIABLES, UM, GO INTO THE CALCULATION OF THE TAX RATE.
UM, BUT I WOULD SAY THAT THESE ARE, YOU KNOW, THESE ARE ALL TAKEN AT THE SAME POINT IN TIME FOR COMPARISON PURPOSES.
AS YOU MENTIONED, IT MAY NOT EQUAL UP TO BE THIS, YOU KNOW, EXACT NUMBER BY THE END OF THE YEAR.
UM, BUT I THINK THAT THE TREND IS, IS A FAIR COMPARISON.
DO WE HAVE, UM, MAYBE A TREND GRAPH OF THE, BEFORE THE TAX ROLL IS CERTIFIED AND AFTER THE TAX ROLL IS CERTIFIED? I'M, I'M CURIOUS TO KNOW.
SO WE, WHAT THAT, WHAT THAT VARIABLE IS FROM PEOPLE THAT PROTEST AND THEN I, THE BIG QUESTION IS WHAT PERCENTAGE OF OUR PROPERTY TAX IS FROM COMMERCIAL PROPERTY? SURE.
SO LET ME ADDRESS THE, THE QUESTION ABOUT HOW WE TRACK THE VALUE OF THE ROLE.
SO WE TRACK IT ON A MONTHLY BASIS, UM, HISTORICAL EVERY MONTH.
UM, WE GET THE ROLE AND WE TRUE IT UP.
SO WE CAN DEFINITELY PROVIDE YOU WITH A, A GRAPHICAL REPRESENTATION OF THAT.
UM, IN TERMS OF THE MAKEUP OF THE ROLE, UM, IS RESIDENTIAL'S ABOUT HALF RESIDENTIAL'S ABOUT HALF OF OUR OVERALL ROLE.
AND SO WE HAVE OTHER COMMERCIAL, INDUSTRIAL, PERSONAL PROPERTY, OTHER CATEGORIES THAT MAKE UP THE REMAINDER.
I, I REALLY WOULD LIKE TO LOOK AT THAT AND SEE WHAT THE PROTEST PERCENTAGE IS ALSO ON COMMERCIAL, COMMERCIAL, UM, PROPERTY.
I THINK THAT THERE, THAT THERE'S A NUMBER THERE THAT WE NEED TO SEE.
UM, SO, YOU KNOW, WE, WE, WE'VE KNOWN THIS FOR A LONG TIME, RIGHT? TAX RATE GOING DOWN NINE OUTTA THE LAST 11 YEARS, NO TRASH FEE, UH, SERVICES ARE, ARE INCREASING WHAT WE'RE NEEDING TO INCREASE SERVICES POPULATION INCREASING.
UM, I GUESS MY, MY QUESTION, UM, IF WE STAY AT THE, THE, THE SAME TAX RATE, 51 CENTS TO THE A HUNDRED DOLLARS, UH, IT'S, IT'S RARE FOR US TO BE ABLE TO INCREASE THE TAX RATE, UH, VOTER APPROVED TAX RATE.
UM, IF THE FOLLOWING YEAR, UH, SOMETHING ELSE HAPPENS AND WE HAVE TO DECREASE FROM, FROM THE 51 CENTS, UM, WHAT'S, WHAT'S THE LIKELIHOOD OF THAT EVEN OCCURRING? OR WILL WE BE ABLE TO SEE ANOTHER RARE OCCASION OF THE VOTER APPROVED TAX RATE BEING ABLE TO INCREASE? THERE ARE QUITE A NUMBER OF VARIABLES THAT COUNCIL MEMBER RAMIREZ WAS MENTIONING EARLIER, UM, THE, THE TAX RATE, BUT YOU'RE ALSO LOOKING AT THE VALUATION.
SO WHAT NECESSITATED US TO LOWER THE TAX RATE ALL THOSE YEARS, UM, THAT YOU SAW HISTORICALLY ON SLIDE FOUR WAS BECAUSE WE HAD SUCH HIGH TAXABLE VALUATION GROWTH.
SO IN SOME OF THOSE YEARS WE HAD DOUBLE DIGIT VALUATION GROWTH.
[00:55:01]
ABLE TO ONLY INCREASE YOUR PROPERTY TAX REVENUE BY LET'S SAY TWO OR 3% A YEAR, AND VALUATION IS GROWING BY EIGHT, 10, 12% A YEAR, THOSE ARE THE YEARS THAT YOU SAW US HAVING TO DECREASE THE TAX RATE.UM, SO THAT'S A COMPONENT OF IT.
NOW, WE'VE SEEN IN THE LAST THREE YEARS HERE, TAXABLE VALUATION GROWTH HAS NOT BEEN AS HIGH, NOT IN THE DOUBLE DIGIT RANGE.
THIS YEAR IS ABOUT FIVE, 5%, 4.8% GROWTH.
UM, I THINK A LOT OF THAT IS, UH, WHAT'S BEING DONE AT THE STATE LEVEL, UH, TO TRY TO LIMIT THE TAXABLE VALUATION GROWTH, UM, AT THE LEGISLATIVE LEVEL.
UM, AND SO IT IS, I GUESS IT'S A LITTLE BIT DIFFICULT TO PREDICT WHAT'S GONNA HAPPEN IN THE FUTURE WITH VALUATIONS.
UM, I THINK THERE'S, YOU KNOW, THE LEGISLATE WHAT'S HAPPENING AT THE LEGISLATIVE LEVEL AS FAR AS INCREASING EXEMPTIONS OR WHATNOT.
AND REMEMBER WE'RE ONLY A PIECE OF THE PROPERTY TAX RATE.
A LOT OF THE LEGISLATURE'S FOCUSED ON SCHOOL TAXES AS WELL, WHICH DOESN'T, UM, DIRECTLY IMPACT US, RIGHT? BUT IT IS RELATED TO THE CONSTITUENTS AND THEIR OVERALL BILL.
UM, IN TERMS OF THE LIKELIHOOD OF BUMPING UP AGAINST THE STATE CAP, WHAT WE'VE SEEN HISTORICALLY IS THAT THE CITY'S CAP IS MORE RESTRICTIVE THAN THE STATE'S CAP.
UM, BUT I CAN SAY THAT THAT MARGIN HAS GOTTEN NARROWER BETWEEN THE CITY CAP AND THE LOCAL CAP AND HOW IT'S, UH, HOW IT COMES OUT IN THE CALCULATIONS.
SO, UM, I GUESS JUST TO, YOU KNOW, FOR, FOR ME, IT'S JUST HAVING THESE CONVERSATIONS WITH THE COMMUNITY, RIGHT? IT'S IMPORTANT.
UM, I THINK EVERYBODY'S ASKING FOR SERVICES.
WE'VE GIVEN THIS UNREALISTIC EXPECTATION THAT WE'RE GONNA PICK UP YOUR TRASH, YOUR RECYCLE, YOUR HEAVY TRASH, UM, UNREALISTIC EXPECTATION THAT YOUR PARKS ARE GONNA BE MOWED ON TIME EVERY TIME, MAINTAIN THEM AS WELL.
UH, THERE'S A LOT OF, UH, DEFERRED MAINTENANCE THAT WE KNOW ABOUT AND, UH, UH, YOU KNOW, WE CAN, WE'RE EXHAUSTING ALL OPTIONS.
UM, AND AT SOME POINT, UH, WE REALLY NEED TO MAKE SURE THAT WE MAKE SOME TOUGH DECISIONS TO WHETHER IT IS THE REVENUE CAP OR THE, UH, A FEE, SPECIFICALLY A TRASH FEE, UM, ON HOW WE START RIGHT SIZING, YOU KNOW, DEPARTMENTS, UH, AT THE END OF THE DAY.
UH, BUT I, I APPRECIATE THIS CONVERSATION CHAIR.
UM, I KNOW THERE'S A LOT OF FOLKS THAT HAVE BEEN HAVING THESE DISCUSSIONS AROUND THE HORSESHOE FOR SOME TIME, BUT IT'S TIME TO MAKE SOME TOUGH DECISIONS.
AND I, IF I COULD ADD TO THAT, I THINK THAT OUR FOCUS THIS YEAR, AS YOU SAW WITH THE ADOPTED BUDGET, WAS REALLY LOOKING AT, UM, REIGNING IN THE EXPENDITURE SIDE, RIGHT? GOING THROUGH THE ERNST AND YOUNG EFFICIENCY STUDY, UM, YOU KNOW, PROPOSING AND ADOPTING A BUDGET THAT'S A 2% DECREASE ON THE EXPENDITURE SIDE YEAR OVER YEAR.
SO TRYING TO FIND ALL THOSE EFFICIENCIES, UM, THAT WE CAN TO, UM, YOU KNOW, U UTILIZE THE LIMITED DOLLARS THAT WE HAVE THE BEST WAY WE CAN.
THANK YOU VICE MAYOR PRO TEM PECK.
THANK YOU CHAIR AND THANK YOU DIRECTOR FOR THE PRESENTATION.
UM, GOING BACK TO SLIDE EIGHT.
UM, LOOKING AT THE DIFFERENT, UM, RATES I HAVE QUESTIONS ABOUT PROPOSITION H KIND OF SIMILAR TO WHAT COUNCILMAN CAYMAN ASKED FOR THE PRIOR YEAR RATE FOR THE ONE THAT WE'RE BEING ASKED TO ADOPT, DOES THAT INCLUDE THE $90 MILLION FOR PROP H? YES.
SO THE $52.6 MILLION VARIANCE THAT WE'RE TALKING ABOUT, THAT'S ASSUMING THE $90 MILLION ALREADY INCLUDED IN THIS CALCULATION.
THE 90, I WOULD SAY THAT THE 90 MILLION IS INCLUDED IN THE 1.452 BILLION.
SO THAT'S IN THE REVENUE, SO, CORRECT.
AND IT'S, AND IT'S THE FULL $90 MILLION THAT WE'RE GETTING OVER WHAT THE BASE WOULD HAVE BEEN? CORRECT.
UM, 'CAUSE I KNOW I ASKED THAT PRETTY MUCH EVERY YEAR BECAUSE IN YEARS PAST, THERE WERE SOME TIMES THAT WE WEREN'T GETTING THE FULL $90 MILLION, BUT JUST WANTED TO MAKE SURE THAT OVER THE BASE OF WHAT WE WOULD'VE GOTTEN IT TO THE 90 MILLION, THE FULL 90 MILLION IS INCLUDED.
COUNCIL MEMBER FLICK AND CHAIR.
THE PRIOR YEAR RATE LEAVES US 52.6 MILLION LESS THAN WHAT IT WOULD'VE BEEN ADJUSTED FOR INFLATION AND POPULATION GROWTH.
SO WHEN WE ADJUST OUR, WHEN WE LOOK AT HOW TO CALCULATE WHAT OUR REVENUE LIMITATION WOULD BE BASED ON THE POPULATION AND INFLATION GROWTH, AND THEN ADDING THE 90 MILLION FOR THE PUBLIC SAFETY, THAT'S THE THIRD.
UH, ON SLIDE EIGHT, THAT'S THE THIRD ROW, THE 1.504 BILLION.
AND IN ORDER TO BRING IN THAT MUCH REVENUE BASED ON OUR ASSESSED VALUATION, THE TAX RATE WOULD HAVE TO BE 53.70 CENTS.
AND WHAT WERE THE FIGURES USED FOR THE INFLATION AND FOR THE POPULATION GROWTH? MM-HMM
UM, THE, THE POPULATION GROWTH WAS ABOUT 3%.
THE INFLATION WAS, I BELIEVE IT WAS LESS THAN 1%, 2%, 2.4%.
[01:00:01]
FOR INFLATION, AND ABOUT 3% FOR POPULATION.AND THAT'S BASED ON THE LANGUAGE THAT, UH, PROPOSITION ONE, YOU KNOW, THE METRICS THAT PROPOSITION ONE TELLS US TO USE.
AND, AND THE RATE THAT'S BEING PROPOSED, WE'LL BRING IN 1.452 BILLION.
WHAT WAS THAT REVENUE THE PREVIOUS YEAR? UM, THE PREVIOUS YEAR'S REVENUE, UM, THIS IS ABOUT A 2% INCREASE FROM THE PREVIOUS YEAR.
SO POPULATION PLUS INFLATION, WE THEN, DID WE HAVE TO USE THE FOUR POINT HALF PERCENT? IT'S THE LOWER OF POP, I MEAN, 3% PLUS TWO AND A NO, BECAUSE THEY'RE COMPARING OFF OF DIFFERENT BASES.
SO WHEN YOU'RE LOOKING AT THE DIFFERENT BASES.
YOU STILL ARE ON THE INFLATION AND POPULATION SIDE CALCULATION.
SO WE'RE STILL ON THE POPULATION AND INFLATION.
AND, AND ON SLIDE EIGHT, WHICH IS UP, UM, I WANNA, WE, WHEN WE PASSED THE BUDGET IN JUNE, WE PASSED THE BUDGET BASED PRETTY MUCH ON THAT THIRD NUMBER THERE, THE 53 CENTS.
WE, WE BASED THE BUDGET ON THE CAP, WE BASED THE BUDGET ON THE CAP.
WE DIDN'T HAVE ALL THE INFORMATION AT THE TIME.
NOT ALL THE NUMBERS, BUT TO AN ESTIMATE OF WHAT THE CAP IS.
SO, SO THAT'S WHY IF WE KEEP THE, THE TAX RATE EXACTLY THE SAME, THAT'S WHY WE, WE REDUCED OUR FUND BALANCE BY $53 MILLION.
BECAUSE THAT WAS, WE HAD INCORPORATED THAT INTO THE BUDGET.
AND THIS IS SIMILAR TO WHAT HAPPENED LAST YEAR WHERE WE DECREASED IT BY 46 MILLION.
AND I UNDERSTAND THAT IMPACT, BUT CAN YOU EXPLAIN THE IMPACT THIS HAS ON CALCULATIONS FOR NEXT YEAR? SURE.
SO AS I MENTIONED WITH THE, WITH THE LOCAL CAP, UM, ONE OF THE, ONE OF THE CALCULATIONS ON THE LOCAL CAP HAS YOU TO LOOK AT PRIOR YOUR ACTUALS.
SO THE LOWER YOUR PRIOR, YOUR ACTUALS ARE, THE LOWER YOUR CAP AMOUNT IS GONNA BE THE FOLLOWING YEAR.
SO THAT'S ON ONE OF THE LOCAL CAP CALCULATIONS.
ON THE STATE CAP CALCULATION SIDE, SIMILAR STORY.
SO THE WAY THAT WE'VE BEEN DECREASING OUR TAX RATE, ALL THESE, YOU KNOW, NINE OUTTA THE LAST 11 YEARS, UM, AND BECAUSE WE'RE LIMITED BY OUR LOCAL CAP, THAT MEANS WE'RE BRINGING IN LESS REVENUE THAN WE OTHERWISE COULD HAVE LOWER PRIOR ACTUALS ON THE STATE CAP CALCULATION HAS A SIMILAR EFFECT.
THEY BASE THE STATE CAP CALCULATION SAYS, LOOK AT YOUR PRIOR YEAR ACTUALS FOR YOUR MAINTENANCE AND OPERATIONS FUNCTIONS.
WHATEVER YOU COLLECTED IN REVENUE, YOU CAN INCREASE THAT BY THREE POINT HALF PERCENT, AND THEN YOU CAN ADD YOUR DEBT SERVICE TAX RATE ON TOP OF THAT.
SO THE LOWER YOUR PRIOR ACTUALS ARE, THE LOWER YOUR STATE CAP AMOUNT IS GOING TO BE THE FOLLOWING YEAR, AND SO ON.
SO IT DOESN'T JUST AFFECT THIS YEAR, IT AFFECTS WHAT OUR CAP COULD BE IN, IN FOLLOWING YEARS.
COULD BE THIS YEAR BECAUSE WE, WE STAYED THE SAME.
AND, YOU KNOW, I'LL REMIND EVERYBODY WE'RE AT A $227 MILLION DEFICIT FACED IN FY 27 AND WE'VE JUST TAKEN, OR WE WILL TAKE $53 MILLION FROM THAT ENDING FUND BALANCE, WHICH WILL THEN BE LESS FOR A BEGINNING FUND BALANCE FOR THE NEXT FISCAL YEAR.
UM, OF THE 1.45, 2 BILLION, HOW MUCH OF THAT IS ADDITIONAL PROPERTIES ADDED TO THE TAX ROLLS? WE HAVE THAT NUMBER.
I DON'T HAVE IT OFF THE TOP OF THAT.
IF YOU COULD GET THAT TO ME, I'D GREATLY APPRECIATE IT.
AND, AND I GUESS KIND OF TO RESTATE WHAT THE CHAIR STATED, UM, MONEY THAT WE DO NOT ESSENTIALLY COLLECT IN TAXES UP TO THE CAP AFFECTS US IN PERPETUITY NO DIFFERENTLY THAN THE 90 MILLION THAT WE WENT BACK AND ADDED AFFECTS US IN PERPETUITY.
I MEAN, IT, IT ALL KEEPS GOING FORWARD.
EACH YEAR'S REVENUES, EACH YEAR'S REVENUES, THAT WOULD BRING IN IMPACT IT.
UH, THANK YOU, UH, DIRECTOR FOR THAT INFORMATION.
I WANTED TO JUST KIND OF GET A CLARITY ON WE, WE SEE THE RATES IN COMPARISON THAT WAS EARLY GIVEN BY THE CONTROLLER'S OFFICE TO OTHER CITIES.
WE, WE JUST, UH, HAD, UH, THE COUNTY HAD A PROPERTY TAX INCREASE FROM 0.35 TO LIKE 0.39, WHICH WAS IT CALCULATED OUT TO LIKE A 8% TAX RATE IN PROPERTY TAX.
SO THAT AFFECTS BY THE WHOLE COUNTY NATURALLY AFFECTS THE CITY.
AND OF COURSE, UH, MAYOR PRO TEM ASKS ABOUT THE PROTEST EVALUATION.
THAT WOULD BE SOMETHING THAT I WOULD LIKE TO SEE, BECAUSE IF
[01:05:01]
A LOT OF THE PEOPLE RATES, IF THEY ARGUED IN PROTEST THEIR RATES NATURALLY, THEY WOULD LOSE OR REDUCE, SAY, THE TAXES.SO, WHICH EVENTUALLY WOULD AFFECT HOUSTON.
SO IS THAT A WAY TO PROJECT THAT AS WELL? MM-HMM
BECAUSE THE TA, THE COUNTY DID RAISE THE TAX RATE TO THE OVERALL COUNTY, WHICH AFFECTS EVERY CITY WITHIN THE COUNTY.
AND I THINK THAT'S SOMETHING THAT WE HAVE TO TAKE INTO CONSIDERATION IN CON, YOU KNOW, WHEN WE, LET'S SAY WE BROUGHT THAT TO THE VOTERS ABOUT, YOU KNOW, RAISING THE REVENUE CAP, WE HAVE TO TRY TO BALANCE IT TO SOME DEGREE, HOW IT'S GOING TO HELP US BASED ON WHAT THE COUNTY'S ALREADY DONE, IN MY MIND.
WELL, AND I THINK THAT, UM, YOUR POINT IS, IS WELL TAKEN THAT THE COUNTY, UH, THE MAJORITY OF THE CITY OF HOUSTON IS INSIDE HARRIS COUNTY.
PIECES ARE IN FORT BEN AND MONTGOMERY, BUT THE VAST MAJORITY IN, UH, HARRIS COUNTY, UM, THE MAJORITY OF EVERYONE'S TAX BILL IS THE SCHOOL DISTRICT.
SO THAT'S, THAT'S FIRST AND FOREMOST THE HIGHEST AMOUNT.
UM, AND THEN, LIKE I MENTIONED, THE CITY'S USUALLY ABOUT A QUARTER OF THAT, THE COUNTY, AND THEN THE OTHER TAXING JURISDICTIONS, DEPENDING ON WHERE YOU ARE, YOU COULD HAVE COMMUNITY COLLEGE PORT, WHATNOT, UM, UH, FLOOD CONTROL DISTRICT, YOU KNOW, OTHER COMPONENTS OF THE COUNTY, UM, TAX BILL AS WELL.
UM, SO I DID WANNA ADDRESS THE SECOND PART OF YOUR QUESTION ON THE VALUE LOSS BECAUSE OF THE HEARINGS.
UM, WHEN WE CALCULATE THE TAX RATE, UM, YOU KNOW, WE, THIS TIME OF YEAR, WE HAVE TO MAKE A PROJECTION, YOU KNOW, WE'RE PROJECTING THAT IT'S GONNA DECREASE OUR REVENUE BY $53 MILLION COMPARED TO THE BUDGET.
BAKED INTO THAT PROJECTION IS WHAT WE THINK THE VALUATION LOSS IS GOING TO BE BECAUSE OF THE HEARINGS AND THE PROTESTS.
SO IN ORDER TO COME UP WITH THAT AMOUNT, YOU KNOW, WE GET REPORTS FROM THE APPRAISAL DISTRICTS.
WE ALSO LOOK HISTORICALLY, UM, SO WE USE OUR BEST JUDGMENT BASED ON ASSUMPTION AT THE TIME TO COME TO THESE, THESE ESTIMATES THAT YOU SEE BEFORE YOU.
UM, BUT THAT IS DEFINITELY PART OF OUR, UM, OUR METHODS AND OUR ASSUMPTIONS WHEN WE MAKE THE CALCULATIONS.
BECAUSE IT DOES MAKE, IT DOES MAKE AN IMPACT.
AND THEN THE POINT TOO IS BECAUSE WHEN THAT HAPPENS, APARTMENT RATES GOES UP, HOUSING, UM, COSTS GOES UP, ALL OF THAT GOES UP EXACTLY WITH THE SAME AMOUNT OF, UH, EFFECT BY WHAT THE COUNTY DOES AND WHAT THE CITY HAS TO, UH, DEAL WITH.
I SEE NO OTHER COUNCIL MEMBERS IN THE QUEUE.
I APPRECIATE THIS INFORMATION VERY MUCH.
AS YOU KNOW, COLLEAGUES WILL BE VOTING ON A, ON A HEARING DATE, UM, TOMORROW ON THE AGENDA ON THIS TAX RATE.
I WANT TO APOLOGIZE FOR THE LENGTH OF THIS MEETING TOO, ESPECIALLY TO OUR VISITORS FROM THE COUNTY.
WE ARE GOING TO, UM, GO INTO OUR DISCUSSION OF THE HEALTH DEPARTMENTS.
I'M GONNA LET MY, UM, MY VICE CHAIR COUNCIL MEMBER CASTILLO KIND OF SET THIS UP.
THIS WAS BASED ON A, A BUDGET AMENDMENT HE HAD, IF YOU'LL REMEMBER, COLLEAGUES, UM, THERE WAS A, AN, OR THE COLLEAGUES THAT WERE HERE, THERE WAS AN INTER LOCAL AGREEMENT PASSED IN 2023 TO DO MORE, UM, MORE CONSOLIDATION BETWEEN THE CITY AND COUNTY, ESPECIALLY IN THE AREA OF DATA SHARING.
WE'RE GONNA GO OVER THAT, BUT COUNCIL MEMBER CASTILLO, IF YOU WANT TO DISCUSS YOUR BUDGET AMENDMENT AND YOUR, YOUR, YOU HAVE A HISTORY WITH THE HEALTH DEPARTMENT, SO, YOU KNOW, UH, YOU KNOW, IN DETAIL THE THINGS THAT ARE PERHAPS DUPLICATIVE AND COULD BE, COULD BE BETTER DONE TOGETHER.
UM, LOOKING FORWARD TO THIS PRESENTATION AND DISCUSSION, UH, THE AMENDMENT PROPOSED WAS TO ALLOCATE DOLLARS TO REALLY LOOK AT, UM, THE CITY'S HEALTH DEPARTMENT AND THE COUNTY'S HEALTH DEPARTMENT, UM, CONSOLIDATING.
UH, SO IT WENT REALLY A STEP BEYOND JUST THE SHARED SERVICES, UH, LOOK AT AT, BUT WHAT CAN WE ACTUALLY DO TO MERGE THE TWO INTO ONE ENTITY FOR THE REGION, THE COUNTY? UM, AS WE HAVE HAD CONVERSATIONS ABOUT OUR FISCAL CHALLENGES AS A CITY AND OUR, OUR REVENUE CAP, UH, THIS IS ONE AREA ALONG WITH, UH, THE OTHER AMENDMENTS FOR PARKS, LIBRARIES AND, AND BARC THAT COULD GIVE US SOME FLEXIBILITY FINANCIALLY AND PUT US IN A POSITION WHERE WE'RE NOT STARTING EVERY FISCAL YEAR IN, IN SUCH A DEFICIT, UM, WHEN WE ARE DOING, UH, SPECIFIC THINGS.
AND THE COUNTY'S HEALTH DEPARTMENT IS DOING THOSE EXACT SAME THINGS, BUT WE'RE DOING THEM JUST IN TWO DIFFERENT GEOGRAPHIC REGIONS.
UM, THERE ARE OTHER, UM, PUBLIC HEALTH, UH, DEPARTMENTS OUT THERE THAT ARE JUST THE COUNTY, YOU KNOW, UM, THAT ARE LARGE JURISDICTIONS.
AND SO THERE'S SOME, SOME PRECEDENT OUT THERE.
[01:10:01]
DIRECTOR WILLIAMS, WHEN HE WAS IN AUSTIN, UH, HE PARTICIPATED IN A VERY SIMILAR EXERCISE WITH TRAVIS COUNTY PUBLIC HEALTH AND THE CITY OF AUSTIN, UM, DOING SOME JOINT OPERATIONS AND LOOKING AT REALLY, UH, BECOMING MORE OF ONE ENTITY.AND SO, UM, THAT'S, THAT'S WHERE THIS ALL CAME FROM.
AND, UH, HAVING BOTH, UH, BOTH, UH, LEADERS HERE TODAY TO TALK ABOUT IT WILL, WILL GIVE US, UM, GOOD INSIGHT INTO WHERE THERE IS MORE POSSIBILITY AND, AND WHAT THOSE NEXT STEPS ARE THAT WE CAN TAKE, UH, TO REALLY MOVE THIS FORWARD IN A MEANINGFUL WAY.
I APPRECIATE THOSE REMARKS AND WANNA WELCOME LEAH BARTON, WHO IS THE DIRECTOR OF HARRIS COUNTY PUBLIC HEALTH.
AND OF COURSE, WE HAVE DR. TRAN, WHO IS OUR NEW DIRECTOR.
THEY'RE BOTH FAIRLY NEW IN THESE POSITIONS.
UM, AND GREAT STRONG WOMEN WHO I KNOW ARE GONNA RUN THESE DEPARTMENTS, UM, AS EFFICIENTLY AS THEY POSSIBLY CAN, AND LOOKING FORWARD TO HOW WE CAN BUILD STRONGER PARTNERSHIPS, UM, FOR IN THE PUBLIC HEALTH FIELD.
AND THANK YOU, UM, COUNCIL MEMBERS FOR GIVING US THE OPPORTUNITY TO, UH, PRESENT WHAT WE ARE ALREADY DOING TOGETHER.
SO, UH, BEFORE I START, I WANTED TO RECOGNIZE THAT WE HAVE, UM, MY HEALTH DEPARTMENT TEAM IS HERE TO, UH, TO KIND OF ANSWER ANY QUESTIONS THAT, UH, OF THINGS THAT HAVE HAPPENED BEFORE MY TIME HERE.
BUT I ALSO WANT TO START BY KIND OF, UM, LEVEL SETTING A LITTLE BIT.
I HAVE THE OPPORTUNITY TO LOOK AT THIS FROM BOTH AN OUTSIDER AND CONSTITUENT VERY RECENTLY, AND NOW ALSO AS THE DIRECTOR OF THE HEALTH DEPARTMENT.
AND I WILL SAY, BEFORE I STEPPED INTO THIS ROLE, IT WAS REALLY NATURAL FOR ME TO WONDER WHAT IS THE COUNTY AND WHAT ARE THE COUNTY AND THE CITY DOING TOGETHER? BECAUSE I DON'T KNOW HOW, UM, HOW MUCH EFFORT WAS PUT INTO PUBLICIZING THE AMOUNT, JUST THE SHEER AMOUNT OF WORK AND COLLABORATION THAT ALREADY WAS HAPPENING.
AND SO, AS SOMEBODY OUTSIDE OF THE HEALTH DEPARTMENT, I WAS LIKE, THERE IS, YOU KNOW, WHY AREN'T WE WORKING BETTER TOGETHER? AND THE FIR THAT WAS THE FIRST THING, UM, THE FIRST NATURAL INCLINATION, BECAUSE YOU DON'T HEAR ABOUT IT, UM, THROUGH THIS EFFORT TO PUT TOGETHER THIS PRESENTATION FOR TODAY, REALLY, UH, AND, UH, WHICH IS A PRESENTATION WE'RE GOING TO BE JOINTLY, UM, PRESENTING AT COMMISSIONER'S COURT ON OCTOBER 30TH, I HAVE LEARNED SO MUCH ABOUT THE COLLABORATION THAT'S ALREADY HAPPENING, AND IT'S BEEN REALLY REFRESHING AND ALSO UPLIFTING TO KNOW THAT YES, OUR TAX, MY TAX DOLLARS ARE ACTUALLY GOING TOWARDS GREAT WORK TOGETHER.
THERE IS A LOT OF, UM, WORK THAT WE STILL CAN DO TOGETHER, BUT OUTSIDE OF HAVING A HEALTH TAXING AUTHORITY AND A MECHANISM FOR US TO, YOU KNOW, ACTUALLY PUT ALL OF OUR DOLLARS IN THE SAME POT AND DO ALL THE WORK FOR EV THE 5 MILLION MEMBERS OF OUR REGION, UH, YOU KNOW, WE'RE, I THINK THAT THIS DEPARTMENT AND, UH, UH, DIRECTOR BARTON'S DEPARTMENT ARE DOING A REALLY GREAT JOB.
HOW DO I, I DON'T KNOW HOW THE SLIDES WORK.
JUST SAY NEXT SLIDE WHEN I'M OH, OKAY.
SO, TODAY YOU'RE GONNA HEAR ABOUT THE, UM, PROGRESS ON THE ILA THAT WAS, UH, CREATED BETWEEN HARRIS COUNTY AND THE, UM, THE CITY OF HOUSTON IN 2023.
UH, WE'RE GOING TO JUST PULL OUT SOME HIGHLIGHTS FOR REFERENCE.
THE, WHAT WE'RE DISCUSSING IS, UM, PROGRESS ON THE INTERLOCAL AGREEMENT, UM, THAT WAS, UH, SIGNED AT THE BEGINNING OF 2023, WHICH OUTLINED LIKE NINE OR 10 ITEMS FOR COLLABORATION BETWEEN THE HOUSTON HEALTH DEPARTMENT AND HARRIS COUNTY PUBLIC HEALTH.
WE ARE GONNA CALL OUT SOME EXAMPLES JUST FOR BREVITY TODAY, BUT WE ALSO HAVE FOR REFERENCE A DOCUMENT THAT OUTLINES, UM, MORE CLOSELY WHAT, UH, EACH OF THE ITEMS FROM THE ILA ASKED FOR, UH, SOME KEY COLLABORATIVE POINTS WE CAN TALK ABOUT, UM, SOME OF WHAT WE WANT TO SEE.
AND, YOU KNOW, AS DIRECTOR BARTON AND I ARE KIND OF NEW IN OUR ROLE, THERE ARE AREAS THAT WE ALREADY UNDERSTAND, UM, ARE, ARE AREAS OF IMPROVEMENT, AND WE CAN TALK A LITTLE BIT ABOUT THAT, UH, AND SOME OF THE PROGRESS THAT HAS ALREADY BEEN MADE LEADING TO SOME FUTURE ASPIRATIONS.
AND THEN, OF COURSE, UH, OUR ASKS OF OUR ELECTED OFFICIALS TO SUPPORT US IN THIS, UH, ONGOING WORK.
SO, UH, TO BEGIN, WE'RE GONNA START BY HIGHLIGHTING A, A BIG LEVEL THING, WHICH IS OUR COMMUNITY-WIDE PLANNING THROUGH THE COMMUNITY HEALTH ASSESSMENT AND THE COMMUNITY HEALTH IMPROVEMENT PLAN EVERY FIVE YEARS, UH, WE ARE REQUIRED TO DO A COMMUNITY HEALTH ASSESSMENT.
THE COUNTY AND THE CITY HAVE SO FAR BEEN DOING THESE ASSESSMENTS SEPARATELY, BUT, UM, THROUGH
[01:15:01]
THE, UH, THIS, THE CHIP STEERING COMMITTEE, WHICH DIRECTOR BARTON CAN TALK MORE ABOUT, BECAUSE IT'S A HARRIS COUNTY PUBLIC HEALTH COMMITTEE.UM, AND ALSO THE ACCESS TO CARE ASSESSMENT, WHICH IS SOMETHING THAT WE'RE WORKING ON.
UH, THE DELIVERABLE IS SET TO BE DUE JANUARY THROUGH MARCH TIMEFRAME, BUT WE'RE, UH, HARRIS COUNTY IS BEGINNING THEIR RE-ACCREDITATION CYCLE WITH THE PUBLIC HEALTH ACCREDITATION BOARD.
AND, UH, HOUSTON HEALTH DEPARTMENT IS ALSO GOING THROUGH THAT CYCLE NEXT YEAR.
SO THIS ACCESS TO CARE ASSESSMENT IS AN OPPORTUNITY FOR US TO ALIGN THE, UH, CHIP AND OR THE CHA, UH, TO POTENTIALLY LOOK AT DOING JUST A REGIONWIDE ASSESSMENT FOR BOTH OF OUR ACCREDITATION NEEDS.
UM, DEAR DR. BARTON, YOU WANNA TALK ABOUT THE CHIP STEERING COMMITTEE? SURE.
AS PART OF THAT RE-ACCREDITATION PROCESS, HARRIS COUNTY DEVELOPED A, UM, SO ALSO, UH, SOMETHING THAT WAS ALREADY ESTABLISHED WAS THIS QUAD MEETING BETWEEN HARRIS COUNTY, US, THE HARRIS HEALTH, AS WELL AS THE HARRIS CENTER.
AND I THINK OVER TIME, BECAUSE JUST EMERGENCIES CREATED SO MANY NATURAL VENUES FOR COLLABORATION AND COMMUNICATION, THESE, UM, QUARTERLY OR MONTHLY MEETING CADENCES JUST KIND OF WENT AWAY.
AND SO WE'RE COMMITTED TO ESTABLISH REESTABLISHING THOSE TALKS, UH, ON A REGULAR DAY BASIS.
UM, SECONDLY, UH, DATA SHARING IS A HUGE AREA FOR, UM, UH, EFFICIENCY THAT I THINK THAT WE CAN ALL UNDERSTAND AND RECOGNIZE.
WE ALREADY HAVE AN INTERLOCAL AGREEMENT TO, UH, UH, ON NOTIFIABLE HEALTH CONDITIONS, AS WELL AS, UH, WASTEWATER SURVEILLANCE DATA THAT WAS, UH, ESTABLISHED.
WE HAVE A BIG OPPORTUNITY, AND WE CAN TALK A LITTLE BIT MORE, MORE ABOUT THIS IN FUTURE ASPIRATIONS, BUT A HUGE OPPORTUNITY THROUGH OUR, UM, JUST OUR, UH, ELECTRONIC MEDICAL RECORDS TO, UH, HAVE PATIENT DATA ACROSS THE, UM, ACROSS THE REGION.
UH, AND THAT'LL BE IN A LITTLE BIT LATER IN THE PRESENTATION.
SO, UM, A NATURAL AREA OF, UM, YOU KNOW, OF COORDINATION, OF COURSE, IS PUBLIC HEALTH EMERGENCY RESPONSE.
UM, WE COORDINATE IN A COUPLE OF WAYS OR A FEW WAYS, UH, BY JUST DESIGN, UM, BY FE LIKE FEDERAL FUNDING DESIGN, AS WELL AS THE WAY THAT WE, UM, THE WAY THAT WE RESPOND TO DISASTERS AND EMERGENCY, UH, OR EXCUSE ME, PUBLIC HEALTH EMERGENCIES.
UM, BUT WE, UH, SO WE COORDINATE THROUGH THE NATIONAL STOCKPILE, UH, EXCUSE STRATEGIC NATIONAL STOCKPILE MEDIC MEDICAL COUNTERMEASURES WORK GROUP.
UM, WHEN THERE ARE DISASTERS, AND WHEN THERE ARE, UM, YOU KNOW, UH, NATURAL, NATURAL DISASTERS, UH, YOU HAVE TO HAVE PLACES WHERE YOU CAN GET PEOPLE MEDICATIONS WHEN THEY'RE NOT ABLE TO GET TO, FOR EXAMPLE, THE HOSPITAL OR A CLINIC OR THE PHARMACY.
AND SO WE COORDINATE ON THAT, UH, UM, IN PREPARE, IN, IN PREPARATION.
UM, THE, UH, WE HAVE OF COURSE, UM, BIOWATCH OR THE WHOLE WHOLE AIR PROGRAM THAT WE COORDINATE ON.
OH, WE ALSO, WE PREPARATION FOR LARGE MASS EVENTS WHERE THERE MAY BE PROBLEMS, UM, WITH, UH, ENVIRONMENTAL, YOU KNOW, TERRORISM, FOR EXAMPLE, OR, UH, OUTBREAKS, UH, WHEN YOU HAVE A BUNCH OF PEOPLE COMING FOR THE RODEO OR FOR, UM, THE, UH, FOR THE SUPER BOWL OR FIFA COMING UP.
WE COORDINATE OUR EMERGENCY RESPONSES FOR THAT AS WELL THROUGHOUT THE REGION.
FOR FIFA, WE'RE WORKING ON, UM, THE FAMILY ASSISTANCE CENTERS.
SO CITY OF HOUSTON IS DOING THE FACS WITHIN OUR JURISDICTION.
AND THEN OF COURSE, HARRIS COUNTY HAS THEIRS OUTSIDE.
UM, SO THERE'S JUST SEVERAL THINGS THAT WE'VE BEEN ASSIGNED TO WORK ON THAT WE WORK ON TOGETHER, OF COURSE.
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UH, A PRETTY SIGNIFICANT ROLE, OF COURSE, OF MAYBE ONE OF THE MOST SIGNIFICANT ROLES OF PUBLIC HEALTH IS HOW WE GET INFORMATION TO, UH, TO THE PUBLIC ON ACTUAL HEALTH, LIKE WHAT WE NEED TO KNOW FOR HEALTH AS A TRUSTED SOURCE FOR HEALTH INFORMATION.SO, OUR PIOS FROM THE REGION, NOT JUST FROM HARRIS COUNTY AND THE HOUSTON HEALTH DEPARTMENT, BUT FROM FORT BEND AS WELL, MEET AT LEAST MONTHLY, UH, WHEN THERE ARE EMERGENCIES, THEY ARE MEETING MORE LIKELY ON A, A WEEKLY CADENCE.
BUT WE HAVE, UH, CO-BRANDED TEMPLATES.
AND, UH, AN EXAMPLE IS ON THIS SLIDE FOR YOU WHERE, UH, WE LISTED THE VACCINE LOCATIONS FOR MEASLES ACROSS THE REGION, NOT JUST THOSE THAT ARE, YOU KNOW, WITHIN OUR JURISDICTION OR THEIR JURISDICTION.
UM, SO ESPECIALLY WITH OUTBREAKS, AND ESPECIALLY AFTER COVID-19, WE REALLY HAD AN OPPORTUNITY TO STRENGTHEN THE WAY THAT WE COORDINATE WITH ONE MESSAGE AND ONE, UM, FACE.
UH, ANOTHER CALL OUT AREA IS, UM, HOW WE DEAL WITH CLINICAL AND PREVENTATIVE HEALTHCARE.
OF COURSE, HEALTHCARE AND CLINICAL CARE REALLY HAPPENS IN NEIGHBORHOODS AND IN REGIONS WHERE PEOPLE LIVE.
AND SO THERE'S A NATURAL COORDINATION ACROSS JURISDICTIONS OF, UH, PROCESSES AND WORKFLOWS AND, UM, REFERRALS TO, IN, INSIDE AND OUTSIDE OF THE JURISDICTIONS.
SO THAT PLANS, UM, YOU KNOW, IT DOESN'T MATTER WHERE THE PATIENT ACTUALLY IS, THE STANDARD OF CARE IS THE SAME.
UM, ONE SIGNIFICANT CALL OUT I WANTED TO TALK ABOUT WAS THE, UM, ENDING HIVE, UH, EPIDEMIC, UM, WHICH IS AN INITIATIVE THROUGH THE CDC THAT WE HAVE BEEN NATIONALLY RECOGNIZED FOR BECAUSE, UH, HARRIS, UM, COUNTY PUBLIC HEALTH AND HOUSTON HEALTH DEPARTMENT TOGETHER JOINTLY, UM, CREATED A MASTER PLAN THAT HAS BEEN, UH, EVALUATED ON A NATIONAL LEVEL AS, YOU KNOW, KIND OF A, UM, THE, A BENCHMARK FOR HOW THINGS OUGHT TO BE DONE.
UH, AND AS, AS I MENTIONED, UM, THE NEXT BULLET POINT IS ON TB CASE MANAGEMENT, WHEN WE HAVE PATIENTS ACROSS JURISDICTIONS OR WHERE WE REFER, UM, OUTBREAKS, WE, WE WORK PRETTY CLOSELY TOGETHER, UM, ON, ON WHERE, ON HOW TO RESPOND TO THOSE ISSUES.
UM, AS NEXT STEPS WE HAVE, YOU KNOW, WE ALL KNOW WE HAVE OUR MULTI-SERVICE CENTERS, UM, AND THEY HAVE A DENTAL CLINIC, OR THEY HAVE MOBILE DENTAL SERVICES.
AND SO, UM, WE HAVE MOUS IN PLACE TO BUILDING ON MOUS THAT HAVE ALREADY BEEN IN PLACE TO, UM, OPTIMIZE HOW THEY USE THEIR MOBILE HEALTH, UH, CLINICS.
IN ADDITION WITH, UH, HOW, WHERE WE HAVE PATIENTS COME IN NATURALLY ALREADY.
UM, THIS SLIDE IS JUST A LIST OF SOME OF THE OTHER THINGS THAT YOU'LL SEE ON THE FULL DOCUMENT, BUT, UM, REALLY TRULY ACROSS OUR DIVISIONS, WE HAVE A LOT OF, IN OUR PROGRAMS, WE HAVE A LOT OF COLLABORATION ALREADY.
I, I, OUR ENVIRONMENTAL PUBLIC HEALTH TEAMS DO A LOT OF WORK TOGETHER AND, UH, LIKE WHEN THINGS ARE REALLY LOW PLACE-BASED, UM, INTERVENTIONS, UH, THEY WORK TOGETHER TO MAKE SURE THAT THE STANDARDS ARE SIMILAR ACROSS THE BOARD.
AND THAT, UM, RE THAT REFERRALS ARE EASY AND SEAMLESS.
UM, THERE, I MEAN, I COULD GO THROUGH ALL OF THIS, BUT I'LL LET YOU READ THAT.
AND THE FULL DOCUMENT IS ON OUR WEBSITE, EVERYBODY, BUT ALL THE DIFFERENT THINGS THAT ARE, THAT THAT'RE COLLABORATING ON.
SO WE DON'T HAVE BARK ANYMORE, BUT WE DO, UH, WE DO THE RABIES, UM, VACCINATIONS AND RABIES TESTING.
OUR LABORATORY SERVICES PROVIDES ALL OF THAT, AND THEY, OF COURSE HAVE, UM, THE COUNTY PETS PROGRAM.
UM, SO NEXT, ON THE NEXT SLIDE, REALLY, UH, OH, SORRY.
UM, WE ARE AT A PLACE, OF COURSE, WHERE WE, AS WE JUST HEARD, WE'VE GOT, WE'VE GOTTA DO MORE WITH LESS FUNDING.
AND SO, UM, THAT'S SOMETHING THAT DIRECTOR BARTON AND I CAN DISCUSS A LOT MORE AS WE KIND OF GET INTO THIS, UM, INTO THIS NEXT BUDGET CYCLE.
BUT HOW WE, UH, APPROACH PHILANTHROPY, UM, LOOKING INTO NEW WAYS OF GETTING FUNDING, INCLUDING, FOR EXAMPLE, TURS AND HOW MAYBE WE CAN TAP INTO SOME OF THAT FUNDING WITH OUR MULTI-SERVICE CENTERS.
UM, AND THEN THIS WHOLE IDEA, AND IT'S NOT JUST A REGIONAL IDEA, BUT
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THIS NATIONAL IDEA OF, UM, YOU KNOW, SHARED SAVINGS THAT WE, THAT IN PREVENTION, WE ARE SAVING DOLLARS.AND SO WE, WE WOULD LOVE TO SEE A MECHANISM FOR, UM, FOR US TO BE ABLE TO CONTINUE OUR WORK BASED ON THAT, AS WELL AS REIMBURSEMENT AS WELL FOR, UM, THE WORK THAT WE DO IN PUBLIC HEALTH OUTSIDE OF JUST ACUTE CARE MEDICINE, BUT REALLY LOOK GOING AFTER THE NON-MEDICAL DRIVERS OF HEALTH AND BEING ABLE TO GET REIMBURSED FOR THAT.
AS I MENTIONED BEFORE, THERE'S A ROOM FOR IMPROVEMENT WITH OUR DATA SHARING.
UM, ONE AREA THAT WE COULD GET HELP FROM WITH COUNCIL IS, YOU KNOW, THE HOUSTON HEALTH DEPARTMENT USES A VERSION OF EPIC, WHICH IS AN ELECTRONIC MEDICAL RECORD KEEPING SYSTEM THAT, UM, THROUGH THE, THROUGH A VENDOR THAT'S KIND OF OLD AND, UM, NOT USER FRIENDLY.
UH, SO HARRIS HEALTH HAS CR, UH, HAS REALLY ACTUALLY REVAMPED THEIR EPIC SYSTEM TO WHERE INSTEAD OF BEING A MODULE LIKE KIND OF PUT TOGETHER SYSTEM, THEY'RE USING THE NEW AND IMPROVED VERSION OF EPIC THAT HAS COME OUT THAT HAS A LOT OF CAPABILITY FOR BIG DATA AND, UM, AI AND THINGS LIKE THAT.
SO, UH, THAT IS THE INSTANCE OR THE, THE SYSTEM THAT I THINK WE SHOULD GO TO, UM, THAT HARRIS COUNTY IS ALREADY GOING TO.
AND SO THROUGH THAT JUST SHARED, UM, VERSION OF AN EMR THAT WE'RE ALREADY LIKE AN EMR SYSTEM THAT WE'RE ALREADY USING, IF WE'RE ABLE TO GET THAT UPGRADE, YOU WOULD SEE A LOT OF NATURAL, UM, DATA SHARING THAT COULD HAPPEN THROUGH THAT.
UM, SO IF THERE'S SOMETHING THAT COUNCIL WANTS TO WORK ON, UH,
UM, SO, UH, AND THEN OF COURSE, LEGISLATIVE ENGAGEMENT.
WE ALREADY WORK REALLY WELL TOGETHER, UH, ON, UM, ON LEGIS WHEN DURING SESSION ON LEGISLATION ON THE STATE AND FEDERAL LEVEL.
BUT, UH, WE JUST NEED TO CONTINUE AT IT.
UM, AND, AND WE DON'T HAVE ANY REASON NOT TO.
SO, YOUR HELP AND OUR ASK REALLY IS TO CONTINUE TO SUPPORT FUNDING FOR PUBLIC HEALTH.
UM, WE SEE OUR BUDGET DECREASE EVERY YEAR, AND I KNOW I'VE HEARD DURING THE BUDGET MEETINGS HOW, UM, SUPPORTIVE OF OUR DEPARTMENT Y'ALL ARE, AND I APPRECIATE THAT.
UM, BUT SEEING THAT AS GENERAL FUND DOLLARS WOULD BE HELPFUL FOR US TO AT, BECAUSE WE ARE SO HEAVILY GRANT FUNDED.
UM, AND SO, SO HEAVILY RELIED, RELIANT ON GRANT FUNDING, UM, BEING ABLE TO HAVE THE STABILITY TO, UH, TO WORK ON THESE PUBLIC HEALTH ISSUES IS HELPFUL, UM, FOR, FOR US TO CONTINUE COLLABORATIONS AND CONTINUE THIS LIKE, STABLE, JUST HAVING STABILITY WITH OUR PARTNERS WOULD BE HELPFUL.
AND SO, UH, IF YOU LOOK AT THE HEALTH DEPARTMENT'S, INSTAGRAM OR FACEBOOK, FOR EXAMPLE, I WOULD LOVE TO SEE EVERY COUNCIL MEMBER SPREAD THOSE MESSAGES.
UH, Y'ALL HAVE A MUCH LARGER AUDIENCE THAN, UM, WE DO WHEN Y'ALL ARE COMBINED.
SO, UM, THAT'S SOMETHING THAT JUST PROMOTION AND AMPLIFYING OUR MESSAGE, BECAUSE IT IS A JOINT MESSAGE BETWEEN OUR, UM, TWO, UH, DEPARTMENTS WOULD BE HELPFUL.
AND OF COURSE, YOUR CONNECTIONS AND YOUR, UM, JUST SPONSORSHIP OF WHAT WE DO, UH, IN THE COMMUNITY IS HELPFUL.
UM, PLEASE SPREAD THE WORD THAT WE ARE WORKING TOGETHER AND THAT WE, UH, WE KNOW THAT THERE ARE MORE WAYS THAT WE CAN WORK TOGETHER, LIKE I SAID, SHORT OF A JUST CREATION OF A PUBLIC HEALTH DISTRICT, WHICH I THINK WOULD BE AN AMAZING IDEA.
UM, BUT IT IS A PIE IN THE SKY VISION RIGHT NOW.
UH, TO HAVE A, AN ENTIRE PUBLIC HEALTH DISTRICT THAT WOULD INCLUDE THE HOSPITALS AND THE, LIKE, THE SAFETY NET HOSPITAL AND OUR, OUR DEPARTMENTS TOGETHER, UM, WOULD NEED A TAXING AUTHORITY.
AND SO, UM, YOU KNOW, AS OPERATORS OF OUR DEPARTMENTS, WE'RE WILLING TO WORK TOGETHER AND, UM, YOU KNOW, DO WHATEVER Y'ALL THINK WE NEED TO MAKE THAT HAPPEN.
BUT, UM, THAT'S JUST THE REALITY OF WHERE WE ARE NOW.
DIRECTOR BARTON, DO YOU WANNA ADD ANYTHING? YOU'VE BEEN FAIRLY QUIET, BUT I KNOW THAT, UM, THAT YOU'RE ON BOARD WITH ALL OF THIS IF YOU WANNA ADD ANYTHING.
YOU KNOW, AND, AND, AND, AND IF YOU COULD JUST BRIEFLY DESCRIBE, I MEAN, WHEN PEOPLE THINK OF THE COUNTY, A LOT OF TIMES THEY THINK OF THE HOSPITAL DISTRICT OR HARRIS HEALTH.
EXPLAIN JUST BRIEFLY ABOUT HARRIS COUNTY PUBLIC HEALTH.
I MEAN, YOU'RE AN ACTUAL COUNTY DEPARTMENT YEP.
UNDER THE COUNTY, AND YOU DO KIND OF THE SAME THINGS WE DO, THE
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PREVENTIVE CARE, THE IMMUNIZATIONS, THE, ALL THE STUFF YOU HAVE, THE DOG, THE PETS ALSO, BUT YES, EXACTLY.OTHER THAN THAT, IT'S THE SAME KIND OF THING.
I THINK MY MAIN MESSAGE IS WE'RE NOT WAITING TO COLLABORATE.
WE'RE WORKING TOGETHER ALREADY, AND WE'RE CONTINUING TO LOOK FOR NEW WAYS TO DO SO.
I THINK THE MOST IMPORTANT PLACE THAT WE NEED TO COLLABORATE IS ON AREAS THAT CAN HELP US EXPAND THE TOTAL POOL OF FUNDING AVAILABLE, UH, TO US AS A, AS A CITY AND COUNTY.
BUT, UM, BUT YES, HARRIS COUNTY PUBLIC HEALTH, UH, HAS, HAS A, AN EXPLICIT JURISDICTION SERVING THE TWO AND A HALF MILLION PEOPLE OUTSIDE, UH, THE CITY OF HOUSTON.
BUT OF COURSE, WE OFFER SERVICES ACROSS THE COUNTY.
THERE'S SOME THINGS WE DO COUNTYWIDE, LIKE MOSQUITO AND VECTOR CONTROL, WHERE WE ARE THE, THE ONLY PROVIDER, UM, AND, AND OTHERS, UH, THAT WILL, WHERE WE'LL GO, GO ANYWHERE, UH, LIKE, LIKE MOBILE HEALTH AND, AND WE'RE EXCITED TO PARTNER, PARTNER WITH THE MSES AND THE PARKS ON THAT.
BUT YES, WE HAVE THE COMMUNITY HEALTH AND WELLNESS EMERGENCY PREPAREDNESS AND RESPONSE.
UH, HOW MANY CLINICS DO YOU HAVE? HOW MANY, LIKE OUR HEALTH? WE HAVE, WE HAVE FIVE PHYSICAL CLINICS.
WE HAVE, UH, DENTAL AND BAYTOWN MEDICAL AND DENTAL IN, UH, PASADENA MEDICAL AND DENTAL IN AMBUL, MEDICAL AND DENTAL IN, IN ANTOINE, UH, KIND OF NEAR ACRES HOMES.
AND THEN, UH, A REFUGEE CLINIC DOWN IN HARWIN.
BUT, UM, WE HAVE A BROADER SET OF WIC CLINICS RIGHT, IN THE UNINCORPORATED AREAS.
AND THEN WE HAVE OUR MOBILE ONE, UH, MEDICAL, DENTAL, AND VETERINARY UNITS.
THANK YOU DIRECTORS, BOTH FOR THE PRESENTATION.
UM, DIRECTOR TRAN, YOU, YOU TOUCHED ON THE TAXING ENTITY AND HOW THAT IS SORT OF A LONGER TERM, UH, LOFTIER, UH, SOLUTION, BUT COULD BE SORT OF THE SOLUTION THAT BRINGS EVERYTHING TOGETHER.
UM, COULD YOU TALK MORE ABOUT WHAT IT WOULD TAKE TO GET THAT ESTABLISHED OR WHERE YOU'VE SEEN THAT WORK IN OTHER AREAS AND HOW THAT'S OPERATING? UH, I MEAN, LOOK AT OUR SPORTS AUTHORITY, FOR EXAMPLE.
UM, THAT'S KIND OF THE MODEL THAT I WOULD IMAGINE.
SO WHATEVER HAPPENED TO MAKE THAT HAPPEN,
AND, BUT, YOU KNOW, AND REALLY ALL THE LEADERS BEING ON BOARD ON THE SAME PAGE.
HAVE YOU, UH, SEEN OTHER, UH, LARGER JURISDICTIONS THAT HAVE USED THE, THE HOSPITAL TAXING DISTRICT, UH, BE SUCCESSFUL? I BELIEVE THAT, UM, SEATTLE AND MAYBE SAN ANTONIO, UH, HAS THAT, AND THEN THERE'S, NOW THERE'S ALSO MODELS WHERE THERE WERE COUNTIES AND CITIES TOGETHER, AND THEN THEY SEPARATED.
SO, UM, YOU COULD FIND MODELS ANYWHERE THAT YOU LOOK, BUT, UH, AS LONG AS WE'RE TALKING ABOUT A POTENTIAL COLLABORATION AND LOOKING AT THE POSITIVE MERITS OF A, OF A EITHER CONSOLIDATION OR COLLABORATIVE AGREEMENT, UM, OR DISTRICT CREATION IS, UH, I THINK THAT THAT'S JUST A, A MODEL THAT WE HAVE OUTSIDE OF HEALTHCARE THAT SEEMS TO HAVE WORKED, AND THAT THAT WOULD BE DIFFERENT FROM THE, THE COUNTY'S ALREADY EXISTING HOSPITAL DISTRICT.
SO IN OTHER PLACES, LIKE FOR EXAMPLE, SAN ANTONIO, UM, THE METROPOLITAN HEALTH DISTRICT INCLUDES THE HOSPITAL AS WELL.
SO WE'RE NOT IN A VACUUM HERE BECAUSE YOU CAN'T JUST, YOU KNOW, IT'S NOT JUST THE, UM, THE COUNCIL MEMBERS AND THE COMMISSIONER'S COURT.
WE HAVE TO CONSIDER THE BOARD OF DIRECTORS OF HARRIS HEALTH AS WELL.
AND I'M NOT GONNA SPEAK, OR WE WON'T SPEAK FOR ANY, ANYONE.
WELL, UM, I APPRECIATE ALL THE WORK THAT Y'ALL ARE ALREADY DOING TO, TO WORK TOGETHER.
AND YOUR MENTION OF THE, THE REQUEST FOR AN UPGRADE ON, ON THE SOFTWARE, ON THE TECHNOLOGY, UM, VERY WILLING TO SUPPORT THAT.
UH, HAS, HAVE YOU ALL HAD CONVERSATIONS WITH IT YET ABOUT, ABOUT THAT? UH, YES.
I KNOW THAT OUR IT DIRECTOR IS ALREADY IN CONVERSATIONS WITH HARRIS HEALTH.
I JUST WANTED TO SAY YOU, YOU BOTH ARE NEW, BUT YOU'VE DONE A GREAT JOB, GREAT PRESENTATION, AND I'M ALL FOR YOUR PIE IN THE SKY DREAM OF THAT DISTRICT.
I THINK IT'S A GREAT IDEA, ESPECIALLY WHEN, YOU KNOW, WE TALK ABOUT HOMELESSNESS AND, AND RE-ENTRY AND SUCH, YOU KNOW, THERE'S NO DIVIDING LINE, AND WE NEED TO WORK TOGETHER AS MUCH AS POSSIBLE.
AND I KNOW YOU'RE COLLABORATING, BUT I THINK THAT PIE IN THE SKY IS CERTAINLY A, A GOOD GOAL.
SO THANK YOU FOR BEING HERE, AND THANK YOU FOR YOUR PRESENTATION.
JUST AN EXPRESSION OF THANKS FOR, FOR THE WORK THAT, THAT YOU BOTH DO.
UM, I THINK COLLABORATION'S CERTAINLY GONNA BECOME MORE AND MORE IMPORTANT GOING FORWARD, AND, UH, WE CERTAINLY APPRECIATE THE HELP THAT WE GET FROM OUR COUNTY COMMISSIONERS.
AND SPECIAL WELCOME TO YOU, UH, DIRECTOR BARTON.
I KNOW YOU'RE A HOUSTON RESIDENT,
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AND, UH, I AM CONSTITUENT OF OURS AS WELL.SO WELCOME AND THANKS AGAIN FOR WHAT YOU DO.
I SEE NO OTHER COUNCIL MEMBERS IN THE QUEUE.
THANK YOU VERY MUCH FOR YOUR PRESENTATION AND FOR YOUR CONTINUED WORK TOGETHER TO MAKE THE HOUSTON HARRIS COUNTY AREA THE HEALTHIEST IT CAN BE,
WE DID HAVE A COUPLE PUBLIC SPEAKERS ON THIS ITEM THAT I WAS GOING TO GO AHEAD AND CALL, UH, FIRST LAURA GALLAGHER, WHO I, I DON'T SEE ONLINE, BUT LAURA, IF YOU'RE THERE, STAR SIX AND JUMP IN.
ALSO, HI, CAN, CAN YOU HEAR ME? YES.
UH, MY NAME IS LAURA GALLAGHER, DISTRICT C.
UM, REGARDLESS OF ANY OVERLAP BETWEEN THE CITY AND COUNTY HEALTH DEPARTMENTS, THE PUBLIC HEALTH NEEDS OF THE COMMUNITY ARE NOT BEING FULLY MET.
UM, THE WORD EFFICIENCY HAS LATELY TAKEN ON A NEW DARK, MEANING THAT INCLUDES ELIMINATING PROGRAMS THAT THE COMMUNITY RELIES ON, AND FIRING PEOPLE WITH SIGNIFICANT EXPERTISE, INSTITUTIONAL KNOWLEDGE, AND COMMITMENT TO PUBLIC SERVICE.
WE STILL NEED PEOPLE LIKE THAT TO CARE FOR OUR COMMUNITY RATHER THAN CUT ANY JOBS.
IF YOU FIND REDUNDANCIES, SAVINGS, OR EFFICIENCIES, PLEASE REALLOCATE THE FREED UP RESOURCES TO IMPROVE PUBLIC HEALTH OUTCOMES, BOTH FOR THE COMMUNITY AT LARGE AND FOR OUR MOST VULNERABLE.
WE ENTRUSTED YOU WITH OUR TAX DOLLARS TO MEET THE NEEDS OF COMMUNITY THAT CAN'T BE MET BY INDIVIDUAL EFFORTS OR EVEN GRASSROOTS EFFORTS.
SOME HEALTHCARE CHALLENGES CAN ONLY BE MET AT THE SCOPE AND SCALE OF GOVERNMENT.
THESE INCLUDE THE MENTAL HEALTH CRISIS WHERE PEOPLE WITH UNTREATED MENTAL ILLNESS ARE BEYOND THE ABILITY OF THEIR FAMILIES TO CARE FOR.
SINCE GOVERNMENT HEALTHCARE IS LIMITED IN TEXAS, AND PEOPLE WITH SEVERE MENTAL HEALTH CAN'T HOLD A JOB, THEY DON'T HAVE INSURANCE THROUGH AN EMPLOYER, THEY HAVE NOWHERE TO GO EXCEPT THE STREETS OR JAIL.
AND IF THEY GO TO THE STREETS NOW, IT'S JUST A
I HAVE FAMILIES WHO COULD BE PART OF THIS CRISIS, WERE IT NOT FOR THEIR ACCESS TO MENTAL HEALTH CARE THROUGH THE EMPLOYER HEALTH INSURANCE OF THEIR SPOUSE.
THE HEALTHCARE NEEDS OF PEOPLE SUFFERING FROM MENTAL ILLNESS ARE NOT BEYOND OUR REACH.
THEY MAY REFUSE TREATMENT, BUT THIS IS TRUE OF MOST PEOPLE WITH A MENTAL HEALTH CRISIS.
TREATMENT IS JUST AS STIGMATIZED AS THE ILLNESS.
DITTO FOR CARE FOR PEOPLE WITH SUBSTANCE ABUSE DISORDER.
I'M A FORTUNATE ONE WHO GOT TREATED BEFORE I TOOK THAT ELEVATOR ALL THE WAY DOWN THROUGH MY EXPERIENCE OF REGAINING SOBRIETY, I WITNESSED FIRSTHAND THE JOURNEYS OF THOSE WHO SUNK VERY LOW.
EVEN THE DEPTHS OF SUBSTANCE USE DISORDER CAN BE REVERSED WITH TREATMENT.
UM, HEALTH ISSUES RESULTING FROM DANGEROUS AIR QUALITY ARE NOT BEING MET, FOR EXAMPLE, IN CEGA IN DISTRICT B AS RECENTLY REPORTED IN THE CHRONICLE AND ACCESS TO WOMEN'S HEALTHCARE, INCLUDING CONTRACEPTION.
SINCE MANY CLINICS ARE CLOSING DUE TO THE ABORTION BAN, HOUSTON'S MATERNAL DEATH RATES HAVE BEEN AMONG THE HIGHEST IN THE COUNTRY FOR A DECADE.
AND YET ABOUT HALF OF MATERNAL HEALTHCARE PROVIDERS WERE CUT IN THE RECENT HARRIS COUNTY BUDGET.
YOU'RE RELYING ON A KINDER INSTITUTE STUDY TO CONSIDER CONSOLIDATING THE CITY AND THE COUNTY.
AND PLEASE CONSIDER THE KINDER STUDY FROM NOVEMBER, 2024, URGING THE COUNTY TO MOVE FASTER IN IMPROVING MATERNAL HEALTH.
THANK YOU VERY MUCH FOR YOUR COMMENTS.
NEXT, SARAH REMAN, IS THIS ON? OH, HI, MY NAME IS SARAH.
I, I DO AGREE WITH THIS MERGER.
AS SOMEONE WHOSE EMPLOYER DOES NOT PROVIDE HEALTH INSURANCE, I DO SEE THE BENEFIT OF THE, THE MERGER, BUT WHAT I WANTED TO SAY IS THAT, YOU KNOW, WITH LIKE, I WANTED TO JUST ECHO WHAT LAURA SAID OF LIKE, MENTAL HEALTHCARE IS REALLY ROOTED IN THE CARCERAL HERE IN HARRIS COUNTY.
AND SO I THINK ONE OF THE, YOU KNOW, LIKE ONE THING THAT Y'ALL CAN TAKE ON WITH THIS MERGER IS TO FOCUS ON MENTAL HEALTH CARE AND DECARCERATION IT.
UM, AND THEN WITH THE BUDGET CUTS AROUND MATERNAL HEALTH, WE NEED TO SOCIALIZE WOMEN'S REPRODUCTIVE HEALTH AND HOMELESS HEALTHCARE SERVICES.
I DO THINK THIS, THIS MERGER CAN CREATE SPACE TO KIND OF FILL THOSE GAPS.
AND I ALSO JUST WANNA SAY THAT I THINK IT'S IMPORTANT, YOU KNOW, I ALSO WANNA SAY THAT THE, THE HARRIS COUNTY SHERIFF HIMSELF DURING THE BUDGET HEARINGS EARLIER, UM, EARLIER THIS, UH, COUPLE, LIKE IN SEPTEMBER, HE WAS ALSO SAYING THAT WE NEED TO
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DECARCERATE MENTAL HEALTH.AND SO I THINK THAT WITH THIS MERGER, IT CAN BE A REALLY GREAT OPPORTUNITY.
AND I ALSO WANNA SAY, I THINK WITH HARRIS COUNTY PUBLIC HEALTH, UM, JUST LIKE HARRIS HOUSTON HEALTH HAS A DOCTOR LEADING HOUSTON HEALTH, WE SHOULD HAVE HARRIS COUNTY PUBLIC HEALTH SHOULD BE LED BY A DOCTOR OR A CLINICIAN.
AND I THINK THE IMPACT OF SOCIAL WORK AND COMMUNITY HEALTH AND PUBLIC HEALTH IS LIKE THIS.
AND HAVING SOMEONE WHO'S JUST A CHEMICAL ENGINEER WITH NO ACTUAL COMMUNITY HEALTH EXPERIENCE OR PUBLIC HEALTH EXPERIENCE, THAT I, I, I KNOW LIKE, THIS IS NOT THE AUTHORITY, BUT I JUST THINK THAT WE SHOULD HAVE ACTUAL MEDICAL PROFESSIONALS OR CLINICAL PROFESSIONALS LEADING PUBLIC HEALTH EFFORTS.
ANY OTHER SPEAKERS ON THIS ITEM? OKAY.
SEEING NONE, THANK YOU FOR YOUR PATIENCE, EVERYONE.
WE WILL GET TO THE HOUSTON FIRST, AND I DO WANNA RECOGNIZE THAT COUNCIL MEMBER TIFFANY THOMAS HAS BEEN ONLINE DURING THIS MEETING.
UM, WE WILL HAVE OUR FINAL AGENDA, ITEM SEVEN, OVERVIEW OF THE GRB EXPANSION PROJECT.
FEASIBILITY STUDY, AND I WILL WELCOME PRESIDENT AND CEO MICHAEL, HE, HECKMAN AND HUNTIN PARTNERS EXECUTIVE VP OF CONSULTING, BETHANY DEROSE, THANK YOU FOR YOUR PATIENCE.
I KNOW THIS WAS A LONG MEETING TO SIT THROUGH.
UM, MADAM CHAIR, UH, MR. VICE CHAIR, COUNCIL MEMBERS AND STAFF, UH, IT IS OUR PLEASURE TO BE HERE THIS MORNING.
UM, UH, AND WE APPRECIATE YOU, UH, GIVING US TIME, UH, WITH THE OTHER VITAL WORK, UH, THAT YOU'RE UNDERTAKING THIS MORNING.
UH, BUT TO TALK ABOUT THIS GENERATIONAL PROJECT FOR HOUSTON, UH, AND, UH, WHAT WE, UH, ALONG WITH THE MAYOR UNVEILED BACK IN MARCH, UH, OF WHAT WILL TRULY REDEFINE THE EASTERN EDGE OF DOWNTOWN, WHICH WILL, UH, CONTINUE TO MAKE HOUSTON EVEN MORE COMPETITIVE, UH, THAN WHAT WE ARE TODAY.
UH, WHAT WE'RE GONNA TALK ABOUT TODAY IS THE ECONOMIC IMPACT OF MERELY PHASE ONE.
PHASE ONE WILL BE THE GRV SOUTH BUILDING.
UH, BUT JUST THE FIRST PHASE OF A MAYBE 15 YEAR MASTER PLAN THAT WILL CONNECT TO THE EAST END, UH, THAT WILL REFACE THE EASTERN SIDE OF THE GEORGE R. BROWN WILL CONNECT TO THE GREEN SPACE THAT WILL EVENTUALLY BE ON THE CAP PARK, UH, ABOVE THE I 69 I 45 THOROUGHFARE.
UM, ULTIMATELY CATALYZE AND CREATE AN ADJACENT ENTERTAINMENT DISTRICT.
UH, CREATE BILLIONS OF DOLLARS OF NEW, UM, INCOME AND WAGES FOR HOUSTONIANS AND ULTIMATELY HAVE AN ENORMOUS AMOUNT OF, OF ECONOMIC IMPACT.
UH, I THINK IT IS IMPORTANT TO REMEMBER, UM, HOW WE GOT HERE FROM A FUNDING PERSPECTIVE.
UM, WE ARE ABLE TO DO THIS BECAUSE OF, UH, SENATE BILL 10 57 THAT WAS PASSED IN THE 2023 LEGISLATIVE SESSION THAT WAS AUTHORED AND PASSED BY NOW, MAYOR WHITMEYER.
UH, UNDERSTANDING THAT THE FUNDING THAT WE NEEDED TO BE COMPETITIVE WOULD HAVE TO COME FROM THE STATE LEVEL.
UH, AND SO WE'RE SO FORTUNATE TO BE ABLE TO HAVE THAT DEDICATED FUNDING FOR, FOR, FOR THIS PROJECT.
UH, WE HAVE ALSO SPENT THE LAST SIX MONTHS, UH, ENGAGING AND LISTENING TO THE COMMUNITY.
UH, WE'VE MADE ADJUSTMENTS, UM, BASED ON, UM, UH, GUIDANCE THAT WE'VE HAD FROM A NUMBER OF YOU IN PARTICULAR, COUNCIL MEMBER MARTINEZ, UM, AND HIS CONSTITUENTS AND THE FOLKS IN THE COMMUNITY.
ONE OF THOSE OUTFLOWS NOT THE TOPIC FOR TODAY, BUT, UM, IS THE ADJUSTMENT TO CREATE GREATER CONNECTIVITY BETWEEN THE EAST, THE EAST SIDE, AND DOWNTOWN THROUGH TURNING, UH, LELAND STREET INTO A TWO-WAY CONNECTION, WHICH HOUSTON FIRST WE'RE PAYING FOR IN OUR, IN OUR PROJECT BUDGET.
WE HAVE SET ALL ALONG, UH, FROM THE BEGINNING OF THIS PROJECT, IT IS MUCH MORE THAN JUST ABOUT HOTEL ROOMS. HOTEL ROOMS AND TOURISM PRESENT.
GREAT OPPORTUNITIES FOR OUR COMMUNITY INJECT, UH, MILLIONS AND BILLIONS OF DOLLARS INTO THIS COMMUNITY.
BUT IT'S ABOUT SAVING AND RE-INJECTING VITALITY INTO HOUSTON'S CITY CORE.
HOUSTON IS A GREAT DESTINATION.
UM, ALL OF OUR, UM, UM, AREAS THAT SURROUND THE CITY, UH, FROM HARRIS COUNTY TO THE WOODLANDS TO SUGARLAND AND ALL AROUND.
BUT THE HEARTBEAT OF, OF ANY BIG MAJOR WORLD CLASS CITY IS ITS DOWNTOWN.
AND I CAN TELL YOU THAT THERE ARE COMMUNITIES AROUND THIS COUNTRY, NOT JUST IN THE STATE OF TEXAS, THAT ARE INVESTING BILLIONS OF DOLLARS IN DEVELOPMENT.
AND IF WE DON'T MOVE FORWARD, IF WE STAY STAGNANT AS A COMMUNITY, WE WILL FALL BEHIND.
WE ARE IN A COMPETITIVE ENVIRONMENT.
UH, COMPANIES HAVE A CHOICE AS TO WHERE TO EXPAND THEIR BUSINESSES, WHERE TO GROW THEIR BUSINESSES, WHERE TO MOVE THEIR HEADQUARTERS CONVENTIONS.
MAJOR EVENTS HAVE A CHOICE AS TO WHERE TO BE.
[01:45:01]
WE WANT THAT CHOICE TO CONTINUE TO BE HOUSTON.AND WE BELIEVE THAT THIS PROJECT, UM, WILL HELP US TAKE A MAJOR STEP IN THE RIGHT DIRECTION TO BE ABLE TO DO THAT.
UH, WE HIRED A, UM, UH, EMINENTLY QUALIFIED FIRM, UH, TO COME OUT AND TAKE A FULL COMPREHENSIVE LOOK AT THE FEASIBILITY AND ECONOMIC, UH, IMPACT OF THIS PROJECT.
UM, HUNTIN PARTNERS, I'M PLEASED TO BE ABLE TO HAVE HERE TODAY, BETHANY DEROSE, UH, BETHANY NOT ONLY IN HER WORK, BUT ALSO THE WORK AT, AT HUNIN.
THEY HAVE DONE DOZENS AND DOZENS, IF NOT HUNDREDS OF THESE TYPES OF, OF OF STUDIES ALL OVER THE COUNTRY.
AND WITH THAT, I'M GONNA HAVE HER TURN IT OVER TO BETHANY FOR THE PRESENTATION.
THANK YOU COUNSEL FOR, UH, HAVING ME HERE TODAY.
UH, EXCITED TO TALK ABOUT THIS PROJECT WITH ALL OF YOU.
UH, AS MICHAEL MENTIONED, WE'LL BE FOCUSED TODAY ON THE ECONOMIC IMPACT OF THE OVERALL PROJECT.
UH, THERE IS, UM, A LOT OF GREAT DYNAMICS OF THIS PROJECT, UH, THAT WILL FEED THIS LARGER ECOSYSTEM AS, AS MICHAEL JUST SPOKE TO.
UH, BUT WE'RE GONNA FOCUS TODAY ON THESE INCREMENTAL IMPACTS, UH, RELATED TO THE EXPANSION.
SO, UH, YOU KNOW, WHY DO THIS? UH, IT'S A, IT'S A HIGHLY COMPETITIVE ENVIRONMENT.
UH, CITIES ACROSS THE COUNTRY ARE MAKING SIMILAR INVESTMENTS.
THIS IS A, A SPACE THAT WE, WE DO WANT AND NEED TO BE COMPETITIVE IN, IN ORDER TO, TO KEEP THAT ENGINE, UH, GOING FORWARD.
SO THIS WILL SOLIDIFY, UH, HOUSTON AS A TOP TIER CONVENTION DESTINATION.
UH, AND YOU SEE IN THE MIDDLE HERE ON YOUR SCREEN, STABILIZED ANNUAL PERFORMANCE IMPROVEMENTS.
I THINK IT'S REALLY IMPORTANT TO POINT OUT AND, UH, REINFORCE ONE POINT THAT MICHAEL JUST MADE, THAT THIS IS, UH, ONLY FOCUSED ON THE SOUTH BUILDING EXPANSION.
UH, THERE IS OTHER DYNAMICS, UH, INTO THE FUTURE OF THIS PROJECT.
UH, TODAY WE'RE ISOLATING JUST THE SOUTH BUILDING EXPANSION.
AND WHEN WE SAY A STABILIZED YEAR, UH, THAT IS, UH, THE PERFORMANCE OF THE BUILDING AFTER CONSTRUCTION, WE HAVE, UH, FORECASTED STABILIZATION TO COME ABOUT, UH, 18, 24 MONTHS AFTER, UH, CONSTRUCTION CONCLUDES ON THE BUILDING.
SO STABILIZED ANNUAL PERFORMANCE IMPROVEMENTS.
YOU SEE A 30% INCREASE IN EVENTS HELD 62% INCREASE IN CITYWIDE EQUIVALENCE.
YOU WILL HEAR THAT PHRASE A FEW TIMES THROUGH THIS PRESENTATION OF CITYWIDE EQUIVALENTS.
UH, WE WILL BE USING THAT AS A, UM, AS A TERM, LOOKING AT HOW WE LAYER AND STACK BUSINESS AND DO EVENTS SIMULTANEOUSLY.
SO THIS EXPANSION ALLOWS US TO DO MORE THAN ONE EVENT AT THE SAME TIME.
AND THAT EVENT, THOSE EVENTS BEING OF A SIZE AND SCALE EQUIVALENT OR EXCEEDING THE DEFINITION OF OUR CURRENT CITYWIDE IN HOUSTON, THOSE IMPACTS ARE REALLY IMPORTANT.
AND WE'LL TALK MORE ABOUT THOSE IN A SECOND.
UH, YOU SEE THE, THE NEXT STEP HERE THAT'S IMPORTANT, AND WE'LL SPEAK MORE TO THIS, UH, MOMENTARILY.
UH, THESE BUILDINGS ARE, ARE LARGE BUILDINGS.
UH, THEY, THEY TAKE A LOT TO TURN A ROOM TO MOVE IN, MOVE OUT.
UH, THIS EXPANSION ALLOWS US MORE SPACE AND MORE FLEXIBILITY TO REDUCE THE DARK DAYS AND ESSENTIALLY FILL MORE OF THE CALENDAR GENERATING THOSE LARGER IMPACTS.
UH, CBD HOTEL OCCUPANCY LIFT AT JUST UNDER 5%.
SO WITH THIS EXPANSION, THE OVERALL MARKET WILL SEE THAT INCREASE IN HOTEL OCCUPANCY, UH, AND 337,000 GROUP ROOM NIGHTS ADDED BECAUSE OF THIS EXPANSION ON THE RIGHT HAND SIDE.
MICHAEL, UH, TOUCHED ON THIS BRIEFLY OF THE, THE TOTAL IMPACTS AND VALUE OF THIS PROJECT.
UH, 20.6 BILLION IN NEW SPENDING.
UH, 5.6 BILLION IN NEW HOTEL ROOM REVENUE, 6 BILLION IN NEW EARNINGS AND PAYROLL, AND OVER 740 MILLION IN TOTAL TAX COLLECTED.
UH, WE'LL DIVE MORE INTO THIS MOMENTARILY.
AND, UH, I'M GONNA TAKE A MOMENT JUST BRIEFLY TO HIGHLIGHT A FEW THINGS IN OUR MARKET FINDINGS.
SO WE'LL GO TO THE NEXT SLIDE.
ONE OF THE KEY FACTORS THAT WE LOOKED AT ACROSS THE DIFFERENT COMPETITORS ACROSS THE COUNTRY, UH, WAS NOT ONLY THE BUILDING AND THE LAYOUT OF SPACE AND THE TOTAL AMOUNT OF SPACE, UH, BUT THE ATTACHED AND ADJACENT HOTEL ROOM PACKAGE.
UH, YOU CAN SEE THAT WE ARE BEHIND.
ONE OF OUR KEY FINDINGS IS THAT WE ARE BEHIND OUR COMPETITIVE SET IN TERMS OF THOSE, UH, HEADQUARTER, HOTEL ATTACHED AND ADJACENT HOTEL ROOMS. SO OUR RECOMMENDATION IN THIS PLAN AND IN THIS REPORT IS TO ADD AN A MINIMUM 800 ROOM HEADQUARTER HOTEL.
UH, THAT WOULD BE IN CONJUNCTION WITH THE EXPANSION OF THE SOUTH BUILDING THAT WILL ALLOW FOR THESE LARGER GROUPS THAT ARE LOOKING FOR THIS KIND OF SPACE TO BE ACCOMMODATED IN OUR DOWNTOWN CORE.
AGAIN, THE STATS I JUST SHOWED YOU, INCLUDING THAT NEARLY 5% CBD OCCUPANCY LIFT IS INCLUSIVE OF THAT, UH, NEW INVENTORY COMING ONLINE.
WHERE TO THE NEXT SLIDE? JUST TO SUMMARIZE, THERE'S A LOT IN THE LARGER REPORT HERE.
THESE WERE JUST SOME KEY FINDINGS, UH, FROM OUR MARKET STUDY RESEARCH.
UH, I MENTIONED HOW COMPETITIVE THIS IS ACROSS THE COUNTRY.
AND, AND, UH, MICHAEL MENTIONED WE DO GET TO DO THIS WORK ACROSS THE COUNTRY WITH, WITH DIFFERENT, UH, CITIES, LOOKING AT THE CONVENTION CENTER EXPANSIONS, UH, AND THE TOURISM ECOSYSTEM AT LARGE.
[01:50:01]
HIGHLY COMPETITIVE INDUSTRY.THESE GROUPS MOVE, THEY HAVE A CHOICE, UH, PARTICULARLY IN THE CORPORATE CONVENTION SPACE.
UH, THEY GET TO MAKE THOSE DECISIONS BASED ON THE, THE SIZE, THE SCALE, THE FIT, AND THE ABILITY TO DO BUSINESS IN A PLACE.
NOW THAT IS A VERY COMPETITIVE MARKET.
ONE OF THE ADVANTAGES OF THIS EXPANSION, THE SOUTH BUILDING, UH, THE CONTIGUOUS NATURE OF THE EXPANSION IS A CRITICAL COMPONENT.
THE PROGRAM ALLOWS, UH, FOR HOUSTON TO PUT ITS BEST FOOT FORWARD AND TO BE COMPETITIVE, TO CAPTURE MORE OF ITS FAIR SHARE OF THOSE HIGH IMPACT EVENTS.
SO THIS IS A, A VERY COMPETITIVE SPACE, UM, THAT, NUMBER TWO, HOSTING SIMULTANEOUS OR OVERLAPPING EVENTS, BEING ABLE TO HAVE THIS SPACE, UH, SO THAT WE CAN DO MULTIPLE EVENTS AT THE SAME TIME, WILL AGAIN, UH, ALLOW FOR THOSE LARGER IMPACTS TO BE COMPOUNDED.
UM, AND, UH, WE WON'T HAVE TO HAVE AS MANY DARK DAYS IN THE BUILDING IN TERMS OF TURNOVER AND THINGS LIKE THAT.
UH, NUMBER FOUR, I WANTED TO HIGHLIGHT INCREASED DATA AVAILABILITY.
SO WITH MORE SPACE ALLOWS US TO SELL, UH, TO MORE GROUPS, UH, AND HAVING MORE AVAILABILITY IN OUR CALENDAR.
WE CAN SPREAD BUSINESS OUT AND BE MORE STRATEGIC ABOUT HOW WE SELL INTO THE CALENDAR AND INTO THIS SPACE.
SO, UM, THERE'S A, AGAIN, THERE'S A LOT MORE DETAIL IN THE LARGER REPORT, BUT I WANTED TO HIGHLIGHT A COUPLE KEY THINGS HERE FOR EVERYBODY.
I'M GONNA HIGHLIGHT AGAIN, A COUPLE, UM, KEY COMPONENTS OF, UH, THE GR B'S PERFORMANCE AND WHERE WE'RE PROJECTING PERFORMANCE INTO THE FUTURE.
ONE OF THE KEY ASPECTS HERE, UM, OF THIS EXPANSION IS THE TYPE OF BUSINESS THAT ALLOWS US TO PURSUE.
SO, UH, WE LOOKED AT HISTORY FROM 2017 THROUGH 2024.
UH, WE'RE SHOWING ON THE LEFT HAND SIDE HERE, 2024 ACTUALS COMPARED TO OUR STABILIZED YEAR EVENT, UH, PROJECTIONS.
UH, THE AREAS WHERE YOU SEE THE LARGEST INCREASE IN EVENTS AND ATTENDANCE IS CONVENTION AND CONFERENCE, CORPORATE CONVENTION AND TRADE SHOW.
UH, THIS EXPANSION ALLOWS US TO BE FOCUSED ON, UH, THOSE GROUPS THAT DO GENERATE THOSE RETURNS WHERE WE HAVE THE HIGHEST IMPACT INTO THE COMMUNITY AND INTO OUR, OUR DOWNTOWN CORE.
UH, AND ULTIMATELY LIFTING THE MARKET.
SO A 30% INCREASE IN NUMBER OF EVENTS, 62% INCREASE IN THAT CITYWIDE EQUIVALENT, AND 59% INCREASE IN TOTAL GRB ROOM NIGHTS PRODUCED.
UH, WE TOOK A VERY, UH, DETAILED LOOK AT ALL OF THE DIFFERENT REVENUE STREAMS COMING INTO THE BUILDING, UH, WHAT THOSE, UH, REVENUES AND EXPENSES WOULD NEED TO LOOK LIKE AND WHAT A STABILIZED YEAR, UH, WOULD INCLUDE.
SO THIS IS A SNAPSHOT OF, UH, THE DIFFERENT REVENUE STREAMS COMING INTO THE BUILDING.
UH, BUILDING SPACE RENTAL, YOU CAN SEE A 79% INCREASE, UH, FOOD AND BEVERAGE REVENUE, AND 93% INCREASE.
UH, OBVIOUSLY WE WILL HAVE A BIGGER BUILDING, LARGER OPERATION.
WE WILL HAVE, UH, PARALLEL INCREASES IN OUR EXPENSES, BUT THIS ALLOWS US TO LOOK AT WHERE THE REVENUE WILL COME FROM AND HOW TO PLAN FOR THOSE EXPENSES ACCORDINGLY.
THIS, UH, THIS SLIDE IS EVEN HARDER FOR YOU ALL TO SEE, I'M SURE, UH, ON, ON YOUR SCREENS.
BUT, UM, THE PURPOSE OF SHOWING YOU THIS IS THAT IN THIS WORK, WE WENT TO A VERY DETAILED, UH, POINT TO LOOK AT EVERY SINGLE DAY THAT THE BUILDING WAS IN USE, HISTORICALLY, THE ROOM NIGHT GENERATION FROM EACH DAY, UH, AND WHAT THAT WOULD LOOK LIKE IN THE FUTURE.
UH, IN OUR STABILIZED YEAR, YOU CAN SEE AT THE BOTTOM WE HAVE MORE GREEN AND MORE SPACES ESSENTIALLY FILLED IN.
THAT IS THAT REALLY JUST DEMONSTRATES A LEVEL OF INCREASED PRODUCTION.
UH, IN THE TOP, UH, THERE'S MORE, UH, BLACK BOXES.
THOSE BLACK BOXES ARE THE DARK DAYS I WAS REFERENCING EARLIER.
SO WE HAVE A 66% REDUCTION IN DARK DAYS BY ADDING THE SQUARE FOOTAGE AND, UH, AND ENABLING THE SPACE TO BE MORE ACTIVATED.
UM, OUR AVERAGE DAILY ROOM NIGHT, UH, GENERATION GOES FROM 983 TO OVER 1500.
WE'LL MOVE TO THE NEXT SLIDE, PLEASE.
UH, QUICKLY GONNA TOUCH ON, UH, HOTEL OCCUPANCY TAX AND PFC PROJECTIONS.
SO WE'LL MOVE TO THE NEXT SLIDE.
THIS SHOWS THE PROJECTED FORECAST OF OUR, UH, HOTEL OCCUPANCY TAX, UH, PROJECTIONS.
UH, WE SHOWED A COUPLE OF, UH, KEY EVENTS INTO THE FUTURE FIFA WORLD CUP, UH, WHEN THE SOUTH BUILDING WENT OPEN, AND WHEN WE'RE PROJECTING THE 800 ROOM, UH, HOTEL TO COME ONLINE AS WELL.
AND, UH, AFTER THAT, YOU SEE INTO THE, INTO THE FUTURE, UH, THROUGH 2053, WHERE OUR HOTEL OCCUPANCY TAX REVENUE IS PROJECTED.
THIS IS, UH, THE PFZ PROJECTIONS.
UH, WE MODELED SEVERAL DIFFERENT SCENARIOS.
EACH OF THESE, UH, THAT WE'VE, UH, UH, SHOWED YOU ON HOTEL TAX, ON PFZ, UH, ALL HAVE MULTIPLE SCENARIOS.
WHAT WHAT WE'RE GOING WITH IS, IS OUR, UH, BASE CASE, OUR RECOMMENDATION.
UH, AND SO HERE YOU SEE THREE DIFFERENT SCENARIOS FOR A LOW, MIDDLE AND HIGH OF OUR PFZ OVER 30 YEARS.
UH, YOU CAN SEE WHEN THE SOUTH BUILDING, UH, EXPANSION OPENS AND WHEN THAT HEADQUARTER HOTEL COMES ONLINE, UH, IN
[01:55:01]
THAT MID SCENARIO, 1.97 BILLION IN PFC PROJECTIONS.UH, LASTLY, I WANNA TOUCH ON THE ECONOMIC, FISCAL AND EMPLOYMENT IMPACT.
SO MICHAEL MENTIONED, UM, HOW IMPORTANT THIS PROJECT IS TO THE BROADER COMMUNITY, UH, AND THE LEVEL OF IMPACT THAT A PROJECT OF THIS SIZE AND SCALE WILL HAVE.
UH, AND SO WE'LL TOUCH ON THAT, UH, NOW IN THE NEXT SLIDE.
SO, TOTAL, AS I MENTIONED IN THE BEGINNING, TOTAL SPENDING, UH, 20.6 BILLION, UH, DIRECT 12.2 AND INDIRECT AT 8.4.
UH, EARNINGS AND PAYROLL AT, UH, JUST ABOUT 6 BILLION TOTAL TAX COLLECTED, 741 MILLION.
YOU CAN SEE BELOW THE 741 WHERE WE'VE BROKEN OUT CITY SALES, CITY HOT SPORTS AUTHORITY, AND COUNTY HOTEL OCCUPANCY TAX.
THESE ARE REALLY IMPORTANT FIGURES.
UH, THEY MAKE A SIGNIFICANT, UH, IMPACT INTO THE COMMUNITY, UH, INTO THE BROADER, UH, CITY AND COUNTY AT LARGE, WHERE THESE EVENTS WILL BE COMING FROM, HOW THEY WILL DELIVER IMPACT, UH, ON A MORE CONSISTENT BASIS DUE TO THIS EXPANSION.
AND WE'LL GO TO THE NEXT SLIDE, AND THEN I BELIEVE WE'LL STOP AND TAKE QUESTIONS.
SO, UM, AGAIN, THIS IS A VERY COMPETITIVE SPACE.
UH, THERE ARE, UH, THERE ARE LARGE CITIES IN, IN TEXAS AND ACROSS THE COUNTRY THAT ARE, ARE MAKING INVESTMENTS INTO CONVENTION CENTER ASSETS AND WANTING TO CAPTURE, UH, THEIR FAIR SHARE.
THIS EXPANSION ALLOWS US TO, UH, NOT ONLY COMPETE, BUT HAVE A LEG UP ON THOSE DESTINATIONS.
UM, AND OUR ABILITY TO CAPTURE THAT WILL RESULT IN THESE, UH, IN THESE KEY ECONOMIC IMPACT FIGURES.
SO THANK YOU ALL FOR THE TIME, UH, THIS MORNING.
UH, HAPPY TO STOP THERE AND TAKE QUESTIONS.
REALLY APPRECIATE YOUR PRESENTATION.
TO BE CLEAR, THESE NUMBERS REFLECT JUST THE SOUTH BUILDING.
NOT WHAT WE'RE GOING TO EVENTUALLY DO TO THE MAIN BUILDING NOW.
I'LL GO TO QUESTIONS BY, UH, MAYOR PRO TEM CA.
THANK YOU FOR THE PRESENTATION.
I THINK THAT, UM, THIS IS THE TYPE OF INFORMATION THAT WE, WE NEED AS WE ARE MAKING THESE DECISIONS.
UM, BECAUSE OF THE COMPETITIVENESS OF THIS BUSINESS, I FEEL LIKE IF WE DO NOTHING, UM, WE GET OUT OF THE RUNNING FOR A LOT OF REALLY BIG CONVENTIONS.
AND FOR THE CITY OF HOUSTON, THAT'S IMPORTANT TO US.
I MEAN, WE JUST TALKED ABOUT, YOU KNOW, THE MONEY THAT WE HAVE IN OUR CITY, UM, AND THE MONEY WE DON'T HAVE IN OUR CITY.
AND I, I THINK THAT THE GREATER GOOD, UM, THIS SEEMS LIKE A REALLY GOOD PROGRAM FOR US.
UM, THERE ARE ORGANIZATIONS, YOU KNOW, THAT WE PARTICIPATING AND, AND I REMEMBER HEARING, UM, GROUPS LIKE THE TEXAS MUNICIPAL LEAGUE, THE NATIONAL LEAGUE OF CITIES.
THEY TALK ABOUT THERE ARE ONLY REALLY FOUR CITIES THAT THEY CAN HOST THEIR CONFERENCES IN BECAUSE THEY DON'T HAVE ENOUGH HOTEL SPACE, OR THEY DON'T HAVE ENOUGH CONVENTION SPACE TO BRING THOSE CONFERENCES TO CERTAIN CITIES.
AND HOUSTON HAS ALWAYS BEEN IN THE RUNNING, UM, FOR THAT.
BUT I THINK AS THESE CONVENTIONS GROW AND ARE BIGGER AND BETTER, UM, WE'VE GOT TO BE COMPETITIVE TO MAKE SURE THAT HOUSTON IS A DESTINATION SPOT FOR THESE, UM, CONVENTIONS AND CONFERENCES.
SO I THINK IT'S, IT'S A WONDERFUL IDEA.
UM, WHAT I, WHAT I DO WANT US TO CONTINUE, UH, TO DO IS MAKING SURE THAT WE ARE TOUCHING ON THOSE HOT BUTTONS FOR THE FOLKS THAT AREN'T HAPPY ABOUT WHAT IS GOING TO HAPPEN ON THE SOUTH SIDE.
WE'VE HAD LOTS OF CONVERSATIONS ABOUT IT.
UM, I'VE SEEN THE EMAILS, UM, ABOUT THE CONVERSATIONS WE'VE HAD.
YOU KNOW, I JUST WANNA MAKE SURE THAT WE CONTINUE TO COMMUNICATE WITH THE FOLKS WHO ARE, UM, NOT AS HAPPY ABOUT WHAT'S HAPPENING DOWNTOWN.
UM, BUT IN MY OPINION, THE GREATER GOOD.
UM, YOU KNOW, I'M, I'M DEFINITELY GOING TO SUPPORT IT, BUT WANT TO HAVE THE ONGOING CONVERSATIONS WITH THE COMMUNITY MEMBERS TO SEE HOW WE CAN CONTINUE TO MEET THEIR NEEDS AS WELL.
UH, MAYOR PRO TEM, YOU HAVE OUR COMMITMENT, UM, UH, TO FOLLOW THROUGH ON THE, ON THE COMMITMENTS THAT WE HAVE MADE.
UH, LOOK, HOUSTON FIRST IS, IS AN ORGANIZATION THAT SERVES THIS COMMUNITY.
WHEN WE ARE SUCCESSFUL, THE COMMUNITY BENEFITS, AND WE TAKE THAT ROLE AND RESPONSIBILITY EXTREMELY SERIOUSLY.
UM, WE TAKE, UM, UH, OUR CHARGE FROM OUR BOARD AND FROM THIS BODY AS WELL TO BE INCLUSIVE.
I CAN TELL YOU THAT WE HAVE A 30% MWBE, UM, GOAL FOR THIS PROJECT THAT WE ARE CURRENTLY EXCEEDING, AND WE WILL EXCEED THAT NUMBER.
UM, WE WILL HAVE UPDATES THROUGHOUT THE PROCESS ON HOW MANY, HOW MANY LOCAL, LOCAL FIRMS ARE PARTICIPATING IN THAT AS WELL.
SO THERE, THERE'S A LOT OF RESPONSIBILITIES THAT WE HAVE.
WE HAVE RESPONSIBILITY TO, UH, OUR NEXT DOOR NEIGHBOR COMMUNITIES AND THE BROADER, UH, DESTINATION AS A WHOLE.
AND, UH, MAYOR PRO TEM, YOU HAVE OUR COMMITMENT THAT WE WILL, THAT WE WILL CONTINUE TO DO THAT.
[02:00:01]
COUNCIL MEMBER MARTINEZ.UM, AND I THINK I WANNA SPEAK TO THE COMPETITIVE SPACE AT, UH, YOU KNOW, 'CAUSE ONE OF THE, ONE OF THE, UM, KIND OF CRUX OF THE, THE DISAPPOINTMENT OR FRUSTRATIONS ARE, UM, POKE.
AND SO WHY THIS DESIGN? WHY CONTIGUOUS? CAN YOU EXPLAIN WHY IS IT THAT YOU NEED TO DO IT? BUILD IT THIS WAY? SURE.
I CAN START, MICHAEL, IF YOU WANNA ADD TO THAT.
SO THE CONTIGUOUS NATURE OF THE EXPANSION IS, UH, IS CRITICAL FOR THE SUCCESS OF THESE PROJECTIONS.
UM, THE PROGRAM THAT WE HAVE WORKED ON AND EVALUATED, UH, IN CONJUNCTION WITH MICHAEL AND THE TEAM AT HOUSTON FIRST AND THE TEAM AT POPULACE ON THE DESIGN SIDE, UM, IS, IS REALLY IMPORTANT.
WE ALSO HAD, UH, FEEDBACK FROM MEETING PLANNERS IN THIS PROCESS THAT VALIDATED THE TYPE OF SQUARE FOOTAGE AND THE WAY IT IS UTILIZED.
IF THE PROGRAM IS BROKEN UP, UH, IT WILL NOT BE AS DESIRABLE.
THERE ARE OTHER BUILDINGS THAT HAVE MORE CONTIGUOUS SPACE, AND IT IS EASIER TO DO BUSINESS IN THAT TYPE OF A FOOTPRINT.
UH, THEY WILL, YOU KNOW, LIKELY CHOOSE TO, TO DO THAT BUSINESS ELSEWHERE.
SO THAT, THAT CONTIGUOUS NATURE OF THE EXPANSION, UH, IS A CRITICAL COMPONENT OF THESE PROJECTIONS COMING TO FRUITION.
AND THIS, THIS IS PHASE ONE, PHASE TWO WILL ULTIMATELY BREAK THAT CONTIGUOUS BASED ON THE NORTH SIDE OF THE GRB, UH, FACING THE NORTH SIDE TO THE EAST END, EAST SIDE, EAST DOWNTOWN.
UM, I GUESS THAT'S PART OF THE CONVERSATION WHY IT NEEDS TO BE CONTIGUOUS ON THE SOUTH END.
UM, AND, AND THEN, UH, I THINK I ALSO WANT TO JUST, YOU KNOW, TO MY COLLEAGUES THAT ARE AROUND THE HORSESHOE OR ON ONLINE, UH, UM, WHAT THE MAYOR PRO TEAM IS, HAS BEEN SPEAKING TO WHAT HAS SPOKEN TO AS FAR AS COMMUNITY ENGAGEMENT.
UM, I WANNA CONTINUE TO ENSURE, AND THOSE THAT HAVE MAYBE BEEN TO SOME OF THE MEETINGS, UH, THERE'VE BEEN MORE THAN JUST ONE OR TWO.
THERE'S BEEN OVER A DOZEN THAT I'VE BEEN TO, WHETHER IT'S A LARGER MEETING, WHETHER IT'S BRINGING SOME OF THE FOLKS, UH, EVEN PEOPLE FOR POLK AND SUPER NEIGHBORHOODS TO THE GRB TO SPEAK WITH, UH, HOUSTON FIRST, UH, AT LEAST THREE, TWO OR THREE.
UM, THEN I'VE HAD SEVERAL IN PERSON.
UM, IF YOU HAVE ANY QUESTIONS ABOUT WHERE, WHAT WORK I'VE BEEN DOING, UH, TO MAKE SURE THAT THE COMMUNITY IS BEING HEARD, UH, THAT THERE IS EAST WEST CONNECTION THAT WE ARE LOOKING AT, NOT JUST THIS PROJECT, BUT ULTIMATELY THE, UM, THE SURROUNDING AREA, WHETHER IT'S GREAT SEPARATION.
UM, YOU KNOW, I, I APPRECIATE THE COMMITMENT FOR LELAND TO BE A TWO-WAY, UH, WHICH IS SOMETHING THAT'S NOT NEW.
WE WERE DISCUSSING THIS FIVE YEARS AGO WHEN TECH DOT WAS COMING IN TO DISRUPT, UH, WHAT WAS HAPPENING, UH, BEHIND THE GEORGE R. BROWN.
UH, BUT, BUT, UM, JUST WANTED TO SAY, I, I APPRECIATE YOU ALL CONTINUING TO BE OPEN TO BEING OUT IN THE COMMUNITY.
AND I KNOW THERE'S BEEN MORE FOLKS SHOWING UP TO HOUSTON FIRST MEETINGS AS WELL, BOARD MEETINGS, UH, BUT MY, MY PUSH IS TO CONTINUE TO MAKE SURE THAT, UH, WE CONTINUE TO BE FORWARD FACING TO THE COMMUNITY AS THINGS CONTINUE TO PROGRESS AS WELL.
THANK YOU, UH, COUNCIL MEMBER MARTINEZ, AND WE APPRECIATE, UM, YOUR LEADERSHIP, UM, WITH, WITH YOUR DISTRICT, YOUR SERVICE, AND, UH, COUNCIL MEMBER CARTER SERVICE ON, ON OUR BOARD.
UH, IT'S INCREDIBLY IMPORTANT.
THE FEEDBACK I WILL SAY ABOUT THE, THE LE IN CONNECTION IS A, IS AN EXAMPLE OF, OF, UM, THE RESULTS THAT CAME FROM THE ENGAGEMENT WITH THE COMMUNITY.
UM, THAT WAS NOT IN THE ORIGINAL PLAN.
WE LISTENED, WE HEARD, UH, THE URGENCY AND THE FEEDBACK FROM THE COMMUNITY, AND THUS WORKED WITH THE CITY.
THE CITY ENDORSED THE PLAN, UH, READILY ENDORSED THE PLAN, UH, TO TURN LELAND INTO A, INTO A TWO-WAY CONNECTION.
UH, I, IT, IT IS IMPORTANT FOR US WHO, AS THE OPERATOR OF THESE DOWNTOWN VENUES, TO HAVE GREAT ACCESS TO DOWNTOWN, UM, TO CONNECT TO THE EAST END, WHICH IS A GREAT COMMUNITY.
AND YOU HAVE TO LOOK DOWN THE ROAD INTO THE FUTURE BECAUSE THE, THE N-H-H-I-P, THE TXDOT PROJECT WILL, WILL RADICALLY CHANGE THAT AREA.
AND OUR PLANS FOR THIS AREA WERE MADE AFTER THOSE PLANS WERE ALREADY SET AND IN PLACE.
UH, AND SO WE WANTED TO IMPROVE THAT CONNECTING GREEN SPACE TO GREEN SPACE, UH, WITH A, A SPORTS ENTERTAINMENT AND CONVENTION DISTRICT.
I'M NOT AWARE OF ONE IN THE UNITED STATES THAT EXISTS LIKE THAT.
HOUSTON WILL BE WHAT IT SHOULD BE AS A CITY, AND IN MY VIEW IS FROM THE LAST 20 YEARS THAT I'VE LIVED HERE, IT SHOULD BE A LEADER AND IT SHOULD BE ON THE TOP OF THE PACK.
AND I THINK THIS PROJECT WILL HELP US CONTINUE TO BE THERE.
THANK YOU CHAIR, AND THANK Y'ALL BOTH FOR THE PRESENTATION.
UM, THERE'S NO DOUBT THE FINANCIAL IMPACTS OF THIS PROJECT ARE SIGNIFICANT.
UM, MY QUESTION IS AROUND, UH, THE COMMUNITY'S REQUEST FOR, YOU KNOW, CERTAIN, UH, COMPONENTS OF A COMMUNITY BENEFITS AGREEMENT.
[02:05:01]
IS TWO-WAY LELAND STREET, WHICH YOU'VE ADDRESSED IS, IS BEING DONE.THE OTHER WAS, UM, FOR INVESTMENT INTO THE COMMUNITY FROM SOME OF THE PROCEEDS THAT OR PROFITS THAT THIS PROJECT GENERATES.
COULD YOU SPEAK TO THE FEASIBILITY OF THAT? YEAH.
UM, SO, UH, AS YOU ALL WILL BE, WILL BE BRIEFED IN THE FUTURE, UH, AS OUR FINANCE TEAM IS WORKING WITH, UH, CITY FINANCE AND THE CONTROLLER'S OFFICE, YOU'LL GET A BRIEFING ON THE PLAN OF FINANCE AND WHAT THIS LOOKS LIKE.
UH, IT WILL BE, UH, A BOND OFFERING, UH, THAT ALLOWS US TO MOVE FORWARD NOW TO BE ABLE TO NOT ONLY TAKE ADVANTAGE OF PRICES BEING WHERE THEY ARE TODAY VERSUS WHERE THEY ARE IN THE FUTURE, BUT ALSO MAKE US MORE COMPETITIVE.
UH, THE PFC MONEY, IT'S PROJECT FINANCE ZONE, THAT'S THE LEGISLATION FROM THE STATE COMES IN OVER 30 YEARS AND IS HEAVILY BACKENDED.
UM, THE REVENUES FROM, FROM HOUSTON FIRST AS WELL AS THE, THE, THE PROJECT FINANCE ZONE LEGISLATION WILL BE USED TO PAY FOR, FOR, FOR THE BOND AND THE DEBT SERVICE THAT WILL BE DONE THERE.
WE HAVE TO CONTINUE OUR JOB OF OPERATING THE OTHER FACILITIES THAT ARE IN, IN OUR COMMUNITIES, UM, SELLING AND MARKETING THIS COMMUNITY, UM, ALL OVER THE WORLD.
UM, TO THE EXTENT THAT WE CAN BE SUPPORTIVE OF, OF, OF OUR NEIGHBORS AND THE THINGS THAT HAVE GREAT VALUE, WE WILL CONTINUE TO DO THAT.
I'M NOT SURE WHAT A, A REVENUE SHARING MODEL WOULD, UH, WOULD LOOK LIKE, BUT IT IS IMPORTANT TO NOTE THAT, UM, THE PFC FUNDING IS STATUTORILY RESTRICTED.
AND THEN FOR HOT TAXES THAT ARE COLLECTED THROUGH, UM, YOU KNOW, ALL THE ADDITIONAL CONVENTIONS AND WHATNOT, I KNOW SOME OF THAT IS DESIGNATED TOWARDS OUR ART.
AND, AND SOME OF IT'S ALREADY KIND OF PREDETERMINED.
IS THERE FLEXIBILITY IN HOT TAX TO REINVEST INTO, UH, SURROUNDING NEIGHBORHOODS? WELL, AGAIN, UH, I I THINK THAT THERE'S, THERE'S OPPORTUNITY IN THE, IN, IN THE FUTURE AS THERE'S A NUMBER OF YOU THAT ARE HERE TODAY THAT I'VE HEARD, UM, ADVOCATING, UM, FOR THE EAST END COMMUNITY AND WILL CONTINUE TO DO INTO THE FUTURE.
UH, HOT TAX IS ANOTHER ONE OF THOSE THAT'S AS IT'S, IT'S RESTRICTED BY THE STATE OF HOW THAT CAN BE USED.
THERE'S, THERE'S CERTAIN AREAS THAT, THAT, THAT, THAT, THAT, THAT HAS TO BE DONE.
UM, BUT I THINK IT'S IMPORTANT TO, TO KNOW THAT, THAT THIS PROJECT WILL IMPROVE THE AREAS SURROUNDING OUR NEIGHBORHOOD.
SO YOU SEE THE ECONOMIC IMPACT NUMBERS AND THE JOBS NUMBERS AND THE REST.
THIS PROJECT WILL BE USED TO CATALYZE THOSE THINGS, CREATE MORE BUSINESSES AND JOBS, AND IT WILL ALL, IT WILL, IT WILL IMPROVE THOSE, THOSE AREAS.
SO, UM, IN, IN, IN MY VIEW, I BELIEVE THAT, THAT HOUSTON FIRST IS, IS DELIVERING ON WHAT IT IS ABLE TO DO, UM, THROUGH THIS PROJECT.
WE WILL ALWAYS BE A GREAT NEIGHBOR.
WE WILL ALWAYS BE A GREAT COMMUNITY, UM, ORGANIZATION, UH, IN WORKING WITH, WITH, WITH OUR DESTINATION.
BUT IT IS IMPORTANT TO NOTE AS, AS YOU, AS YOU MENTIONED, COUNCIL MEMBER, UM, THE INCREASE IN HOT IS ALSO VERY IMPORTANT FOR OUR, OUR, UH, ARTS ORGANIZATIONS.
20% OF THE, UH, HOT THAT IS COLLECTED COMES OFF THE TOP AND GOES BACK TO, TO THE ARTS.
SO, UH, PROBABLY NOT SOMETHING THAT'S, THAT'S CONSIDERED WHEN FOLKS LOOK AT THAT $400 MILLION, BUT THAT'S $80 MILLION THAT WILL GO TO THE ARTS THAT OTHERWISE WOULD NOT HAVE.
I, I JUST COULD NOT WAIT UNTIL I HAD A CHANCE TO ADDRESS THIS MATTER ON THE CONVENTION.
THANK YOU FOR YOUR PRESENTATION.
LET ME SAY, ONE OF THE HEARTBEATS, UM, FOR ME IS THAT I WAS A PART AND I HAD THE PRIVILEGE OF HOSTING ONE OF THE LARGEST CONVENTIONS THAT CAME TO THE CITY OF HOUSTON IN 2004.
THAT CONVENTION WAS AMAZING BECAUSE WE GOT A CHANCE TO HIGHLIGHT GEORGIA BROWN CONVENTION CENTER AS WELL AS THE HILTON HOTEL.
UH, THERE'S NOTHING MORE GRATIFYING WHEN YOU BRING IN MONEY IN THE CITY AND THE OPPORTUNITY TO WHERE YOU BRING PEOPLE TOGETHER IN THIS CITY.
AND I HAD TO BE THE ONE WHO WAS, WHICH WAS A BLESSING TO ME, BUT I DIDN'T EVEN UNDERSTAND EVEN THEN.
THE IMPACT OF WHAT THAT DOES IS PHENOMENAL.
THIS PROJECT, WE ARE THE 11TH NOW.
WE ARE THE 11TH CITY IN TERMS OF CONVENTION SIZE, IN TERMS OF THE SIZE OF THE CONVENTION.
WE NEED TO BE UP THERE IN THE TOP FIVE.
ALL OF WHAT HOUSTON HAS TO OFFER, AND I KNOW THE COLLEAGUES AROUND HERE UNDERSTAND THIS, THE CITIZENS UNDERSTAND IT.
WE TALKING ABOUT JOBS, WE TALKING ABOUT HOTEL SPENDING, WE TALKING ABOUT
[02:10:01]
A LOT OF THINGS, WHETHER IT'S RESTAURANTS AND ALL YOU, THERE'S NO WAY ANY OF THESE CITIES OUGHTA BE OUTPACING HOUSTON FOR WHAT AND WHO WE ARE.EAST END, YOU WANT TO TALK ABOUT THAT? AND I GET IT.
UH, MY COMMUNITY THAT WAS EAST END IS NO LONGER.
I HEAR THOSE WHO SPEAK ALONG THE TERMS OF THE POLK STREET.
I GET IT, BUT I'M A THIRD WARD EAST END PERSON.
AND WE'VE SEEN CHANGES GO ON IN OUR CITY, BUT THE FACT IS WE CAN GET ALONG, WE CAN DO BOTH THINGS AND WE CAN GET IT DONE.
THIS CONVENTION CENTER IS GOING TO PROPEL HOUSTON TO LEVELS THIS CITY CAN'T EVEN IMAGINE.
SO, I, I WANNA SAY PUBLICLY, AND I WOULD SAY IT CONTINUOUSLY 20 YEARS AGO, 21 YEARS AGO, WHEN THOSE 10,000 PEOPLE CAME IN HERE, THEY BRAGGED ON HOUSTON.
WE, 21 YEARS LATER DOWN THE ROAD, OUR CONVENTION CENTER IS TOO SMALL.
WHEN YOU TRAVEL, LIKE I'VE DONE TO RELIGIOUS COMMUNITIES AND OTHERS, WHEN YOU TRAVEL TO MAJOR CITIES, NEW ORLEANS, ATLANTA, THEY TOP THE SIDES ABOVE HOUSTON.
SO I, I WANT TO COMMEND YOU, MIKE, AND THE OTHERS HOUSTON FIRST AND ALL THAT, DOING THIS PROJECT.
UH, I HOPE THAT ALL OF CITIES, HOUSTON, TO GET BEHIND THIS, WE NEED THIS.
SO, UH, I JUST SAY ONE LAST THING.
AND JUST BRIEFLY THANK YOU FOR YOUR PRESENTATION.
UM, YOU KNOW, IT'S REALLY KEY THAT THIS MONEY IS COMING FROM THE STATE AND IT SOUNDS LIKE THIS IS A PROJECT THAT WE WOULDN'T BE ABLE TO DO, BUT FOR THIS FUNDING, UM, THE PRESENTATION WAS GREAT.
THIS LOOKS LIKE A WIN FOR HOUSTON.
AND THANK YOU BOTH FOR THE PRESENTATION.
APPRECIATE ALL THE WORK YOU GUYS DO AT HOUSTON.
FIRST, ESPECIALLY MICHAEL, AND, AND THE MEETINGS THAT WE'VE HAD.
I APPRECIATE THE INFORMATION YOU'VE BEEN ABLE TO CONVEY.
I JUST, UM, I'M WONDERING ABOUT THE PROJECTIONS.
UM, THEY SOUND WONDERFUL AND, UM, I'M JUST CURIOUS BECAUSE, UM, OTHERS CITY, A LOT OF OTHER CITIES ARE DOING THE SAME THING, UH, AS I UNDERSTAND IT.
UM, AND CORRECT ME IF I'M WRONG, UM, BUT LAS VEGAS IS EXPANDING ORLANDO, AUSTIN, DALLAS, FORT WORTH, AND I'M, I'M WONDERING HOW WE'RE ABLE TO PROJECT THAT IN THAT ENVIRONMENT.
OUR, UH, EVENTS ARE GONNA INCREASE 30%.
CAN YOU HELP ME, CAN YOU WALK ME THROUGH THAT? SURE, YEAH, GREAT QUESTION.
UM, SO WE, WE TAKE, AS, AS I SHOWED IN, IN ONE OF THE SLIDES, WE TAKE A REALLY DETAILED LOOK AT EVERY DAY AND EVERY SPACE THAT IS AVAILABLE.
SO WE'RE LOOKING AT AVAILABLE SQUARE FOOTAGE AND WHAT THAT AVAILABLE SQUARE FOOTAGE ADDED WOULD ALLOW FOR US TO SELL INTO.
WE ALSO LOOK AT THE SIZE OF THE MARKET.
UH, WE INTERVIEW COMPETITIVE AND COMPARABLE BUILDINGS, UH, COMPETITIVE, COMPETITIVE AND COMPARABLE SALES TEAMS THAT WE'RE GOING UP AGAINST.
UH, AND WE HAD MEETING PLANNER INPUT IN THIS PROCESS.
UH, ALL OF THAT FACTORS INTO WHAT OUR CONVERSION RATE WILL ULTIMATELY BE.
SO WE DON'T GO OUT AND WIN EVERY PIECE OF BUSINESS IF, UH, IF WE DID IT.
SO IT'S, UH, IT'S LOOKING AT WHAT'S OUT THERE IN THE MARKET, WHAT ARE WE PURSUING AND HOW ARE WE ABLE TO INCREASE THAT CONVERSION RATE? THIS, UM, AND OUR OPINION ON THIS PROJECT IS THAT WITH THE, THE PROGRAM AS DESIGNED, THE HEADQUARTER HOTEL AS RECOMMENDED, UH, AS A MINIMUM, IT WILL INCREASE OUR CONVERSION RATE AND ALLOW US TO GO AFTER AND SECURE MORE OF THAT BUSINESS.
UH, ONCE WE DETERMINE THAT CONVERSION RATE AND THE SORT OF SIZE OF THE MARKET THAT IS AVAILABLE TO HOUSTON, WE APPLY, UH, CONSERVATIVE SPENDING FIGURES FOR FOOD AND BEVERAGE, HOTEL, RETAIL, TRANSPORTATION, AND SEVERAL OTHER CATEGORIES.
UH, THAT DATA IS THEN, IS THEN WHAT ALLOWS US TO PROJECT INTO THE FUTURE THOSE ECONOMIC IMPACT FIGURES AND THE AVERAGE, UH, ATTENDANCE AVERAGE DAILY SPEND, UM, AVERAGE INDIVIDUAL, UH, LENGTH OF STAY.
UH, ALL OF THOSE FACTORS ALLOW US TO GET TO THOSE, THOSE LARGE TOTALS IN 20 BILLION IN IN SPENDING.
BUT MICHAEL, DID YOU WANT ANYTHING TO THAT? YEAH, SURE.
COUNCIL MEMBER RAMIREZ, IT'S A GREAT QUESTION.
YOU KNOW, WE'VE, WE'VE, WE'VE HAD THAT QUESTION.
SOME IS LIKE, IS THERE SATURATION FROM, YOU KNOW, NOT JUST TEXAS, BUT, BUT IN OTHER PLACES? UH, I THINK WE LOOK AT IT AS WE'RE EITHER GONNA MOVE AHEAD OR WE'RE GONNA FALL BEHIND, RIGHT? WE DO COMPETE WITH DALLAS ALL THE TIME.
WE DON'T REALLY COMPETE WITH LAS VEGAS.
WE DON'T REALLY COMPETE AS MUCH WITH ORLANDO, ORLANDO, CHICAGO, VEGAS.
THEY'RE KIND OF IN THEIR OWN SECTOR BECAUSE THEY'RE SO LARGE.
[02:15:01]
THE, THE MAIN REASON THAT WE CAN'T BOOK MORE BUSINESS ISN'T FROM A LACK OF INTEREST IN HOUSTON.IT'S, WE DON'T HAVE THE SPACE.
UM, AND SO THAT IS THE BIGGEST ISSUE.
YOU KNOW, WE HAVE FIVE EXHIBIT HALLS.
WE HAVE ONE 34,000 SQUARE FOOT BALLROOM.
BOTH THE HILTON AND THE MERIT MARQUEE BOTH HAVE LARGER BALLROOMS THAN THAT.
AND SO YOU'RE REALLY ONLY ABLE TO BOOK ONE MAJOR GROUP AT A TIME.
WE'LL BE ABLE TO LAYER GROUPS ON TOP OF ONE ANOTHER, WHICH IS GONNA BE WHAT PUSHES OUT THE, THE IMPACT OUT INTO THE COMMUNITY.
UM, WE ARE CONFIDENT BASED ON THE, THE, THE FEEDBACK THAT WE HAVE RECEIVED FROM, FROM MEETING PLANNERS ALREADY.
I, I CAN'T REVEAL WHICH ONE NOR EVEN THE SECTOR, BUT I CAN TELL YOU THAT THERE IS A, UH, CLIENT THAT HAS NEVER BOOKED HOUSTON BEFORE.
IT'S 20,000 PERSON CONVENTION HAS SEEN THESE, UM, UM, PLANS, UH, WILL NOW CONSIDER BOOKING US FOR 20 31, 20 36 IN 2041.
AND WE'LL BE PULLING OUT OF ANOTHER US CITY, UH, TO BE ABLE TO DO THAT.
SO, UH, I CAN TELL YOU THAT, THAT THE, THE DEMAND REALLY WILL BE THERE.
I'LL GO BACK IN THE QUEUE AND LET NO ONE ELSE.
UM, SO 30% INCREASE IN EVENTS HELD.
ARE THE NUMBER OF EVENTS INCREASING OR DECREASING INCREASING THE NUMBER, THE OF EVENTS WILL INCREASE.
THE NUMBER OF TOTAL EVENTS ALL ACROSS THE COUNTRY OR, OR WORLD OR WHATEVER, IS THAT NUMBER INCREASING OR DECREASING? YEAH, I, I'M, UH, GLAD YOU ASKED THAT BECAUSE IT WAS ONE THING I WAS GONNA, UH, TACK ON, BUT I HEARD THE BILL.
UM, THE, THE ONE SLIDE THAT'S NOT INCLUDED IN HERE, THAT IS IN THE LARGER REPORT THAT WE HAVE PROVIDED IS THE STATE OF THE INDUSTRY.
UH, AND THE, UH, THERE'S A STRONG OUTLOOK ON MEETINGS AND CONVENTIONS GLOBALLY AND NATIONALLY.
UH, THAT OUTLOOK ALLOWS US TO SAY THAT THERE, THERE WILL BE GROWTH IN, UH, AVERAGE EVENT ATTENDANCE AND NUMBER OF EVENTS HELD IN A YEAR.
SO THESE LARGER ANNUAL MEETINGS, UH, THAT MICHAEL'S REFERENCING, THE 10,000, 20,000 PERSON, UH, UH, ANNUAL MEETINGS ARE GROWING AND ORGANIZERS FEEL, UH, STRONGLY ABOUT THE FUTURE PERFORMANCE OF THOSE EVENTS, THAT, UH, EDUCATION AND NETWORKING WILL CONTINUE TO BE THE NUMBER ONE REASON THAT PEOPLE GATHER.
UH, AND THAT IS NOT SHOWING ANY SIGNS OF SLOWING DOWN IN THE FUTURE.
AND I'M JUST CURIOUS, UM, THE OTHER CITIES THAT I MENTIONED, LAS VEGAS, ORLANDO, AUSTIN, DALLAS, FORT WORTH, DID HUNTINGDON DO THE PROJECTIONS FOR THOSE FACILITIES AS WELL? WE DO WORK FOR FORT WORTH.
UM, SO YES, WE HAVE BEEN IN THE FORT WORTH MARKET FOR, FOR A LONG TIME.
WE HAVE ALSO WORKED, UH, ON AND OFF FOR DALLAS FOR THE LAST COUPLE OF YEARS.
WE'RE NOT CURRENTLY ENGAGED, UH, IN DALLAS, BUT, UH, WE HAVE WORKED ON THAT PROJECT.
UM, AND PART OF WHAT WE DO, WE HAVE A PROPRIETARY DATABASE.
SO EVEN IF WE ARE NOT WORKING DIRECTLY ON THOSE PROJECTS, WE ARE KEEPING UP ON ALL OF THOSE PROJECTS BECAUSE IT'S RELEVANT TO, UH, OTHER CLIENTS IN THE WORK THAT WE ARE DOING SO THAT WE HAVE A PULSE ON THOSE EXPANSIONS, THOSE INVESTMENTS AND HOW THEY ARE PLAYING OUT.
UH, SO WE HAVEN'T WORKED ON ALL OF THE ONES THAT YOU MENTIONED, BUT WE'RE, WE INTERVIEWED ORLANDO, FOR EXAMPLE, IN THIS PROCESS.
WE INTERVIEWED CHICAGO, UH, IN THIS PROCESS WE, WE SPOKE WITH AUSTIN, SO WE'RE KEEPING VERY CLOSE TABS ON THOSE, EVEN IF WE'RE NOT DIRECTLY WORKING ON THEM.
AND, UM, NOT TO BE LABOR ANYTHING BUT $5.6 BILLION IN NEW HOTEL ROOM ROOM REVENUE.
DOES THAT ASSUME THE HOTEL ROOMS THAT WE ALREADY HAVE OR DOES THAT ASSUME AN ANOTHER HOTEL TO BE CONSTRUCTED OR WHAT? SO IT DOES INCLUDE THE RECOMMENDED 800 ROOM HOTEL.
IT INCLUDES OUR EXISTING INVENTORY.
AND THEN THE THIRD COMPONENT THAT WE DID IS WE TOOK A LOOK HISTORICALLY AT, UM, PIPELINE ROOMS ADDED EACH YEAR.
AND WE TOOK THE AVERAGE ANNUAL ROOM INCREASE OVER THE LAST 10 OR 20 YEARS INTO THE MARKET AND SAID THAT THAT NUMBER PLUS, UH, THE 800 ROOM HOTEL PLUS OUR EXISTING INVENTORY WILL BE NEW HOTEL ROOM REVENUE.
SO THERE, THERE IS AN INCREMENTAL INCREASE IN HOTEL ROOM COUNT, UH, INTO THE FUTURE, EVEN IF IT'S NOT IN THE PIPELINE KNOWN TODAY.
BUT WE TOOK AN AVERAGE BASED ON HISTORIC EDITION.
SO MICHAEL, I'LL ASK YOU, IS THERE, UH, THERE PLANS FOR A NEW HOTEL? SO WHEN WE GOT THIS REPORT, THAT'S SOMETHING THAT WE'RE GONNA HAVE TO TAKE, UM, UH, UNDER ADVISEMENT WITH, UH, WITH OUR BOARD AND LOOK AT WHAT A, A PROCESS LIKE THAT WOULD LOOK LIKE? WE DO, WE, OUR SALES TEAM DOES BELIEVE WHAT THE, UH, UH, THE RECOMMENDATION WAS.
UH, WE, WE BELIEVE THAT THERE WOULD LIKELY BE A LOT OF INTEREST FROM THE PRIVATE MARKET FOR, FOR SOMETHING LIKE THIS BASED ON THE EXPANSION, UM, THE STRUCTURE OF WHAT THAT WOULD LOOK LIKE AND HOW IT WOULD BE DONE.
UM, BUT IT'S SOMETHING THAT WE, WE WILL HAVE TO, WE'LL HAVE TO TAKE UNDER CONSIDERATION.
YOU ANTICIPATE THAT, WOULD THAT WOULD, UH, ENTAIL PUBLIC FUNDS AS WELL OR STRICTLY PRIVATE? DON'T KNOW.
AND, UH, ON THE PROJECTIONS, LAST, LAST AREA, DID YOU TAKE INTO ACCOUNT, UM, NEGATIVE THINGS THAT MIGHT HAPPEN? LIKE, UH, ECONOMIC GROWTH SLOWS OR, OR, OR GOES DOWN? UH, PRICE OF OIL
[02:20:01]
GOES DOWN? UM, HURRICANES, WE, WE HAVE THOSE EVERY NOW AND THEN AND WE LOSE POWER FOR A WEEK, SOMETIMES LONGER.DID YOU, DOES YOUR PROJECTIONS TAKE THAT INTO ACCOUNT AS WELL? YES.
SO WE DID LOOK BACK AT, UH, HISTORICALS SO THAT WE COULD UNDERSTAND WHEN THOSE FLUCTUATIONS WOULD OCCUR.
SO IT'S NOT JUST A STRAIGHT LINE GROWTH RATE AND PROJECTED INTO THE FUTURE.
UH, SO WE WORK CLOSELY WITH, UH, WITH MICHAEL AND, AND FRANK ON THE FINANCE SIDE TO LOOK AT, AT DIFFERENT SCENARIOS AND DIFFERENT PULLBACKS AND WHERE, WHAT WE WOULD CALL PULLBACKS AS TO WHERE THE MARKET MAY HAVE A CORRECTION AND THEN A RECOVERY.
SO WE DID, UH, RUN THOSE NUMBERS AND, UM, AND MICHAEL, YOU COULD SPEAK TO THIS, UH, BUT THOSE NUMBERS HAVE BEEN PROVIDED TO THE FINANCE TEAM THAT ARE LOOKING AT THE FINANCING PLANS AND, UH, THE CONSERVATIVE ESTIMATES ARE BEING, ARE BEING UTILIZED.
AND SO, YES, SHORT ANSWER, WE HAVE WORKED, UH, THROUGH THOSE DETAILS SO THAT WE CAN PLAN FOR ANY UNFORESEEN EVENTS.
AND, UH, TO PIGGYBACK ONTO WHAT COUNCIL MEMBER CASTILLO WAS ASKING MICHAEL, UM, AND CERTAINLY APPRECIATE, UH, HOUSTON FIRST, WHICH I CONSIDER JUST TO BE REALLY ANOTHER CITY DEPARTMENT.
I KNOW IT'S A LOCAL GOVERNMENT CORPORATION, UH, AND THERE'S A LEGAL SEPARATION.
HOWEVER, UM, IN REGARDS TO LELAND TURNING THAT INTO TWO WAY, MY UNDERSTANDING IS IT COULD BE REVERSIBLE.
UM, WE'LL, WE'LL SEE HOW, HOW THAT GOES, UH, CONVERSATION WITH PUBLIC WORKS, BUT THAT'S ANOTHER MATTER.
UH, I HAVE, I HAVE TRIED TO ADVOCATE FOR LOOKING AT ADDITIONAL STREETS TO TURN INTO TWO, A TEXAS FOR INSTANCE, MAYBE FRANKLIN, MAYBE SOME OTHER STREET.
WHAT, WHAT IS HOUSTON'S POSITIONS FOR POSITION ON HOUSTON? FIRST POSITION ON THAT? YEAH, WE'VE HEARD THAT, THAT QUESTION A LOT FROM FOLKS.
AND, AND THAT'S REALLY GONNA BE THE, THE CITY'S PURVIEW.
I I, I AM NOT, UM, UH, A STREET ENGINEER OR EXPERT IN, IN PUBLIC WORKS.
SO IT'S, IT'S, IT'S NOT FOR ME TO SAY I'M NOT ABLE TO, TO, TO SAY WHAT, WHAT THE, UH, ADVANTAGES OR DISADVANTAGES OF THOSE THINGS MAY BE, BUT I KNOW THERE'S A LOT OF INTEREST IN, IN, IN EXPLORING THAT AND EXPLORING WHAT THOSE, WHAT THOSE THINGS, UM, COULD POTENTIALLY LOOK LIKE.
AND I, I THINK THAT A NUMBER OF YOUR COLLEAGUES HAVE HAVE SOME OF THE SAME, UH, INTEREST IN, IN LOOKING AT THAT, BUT WE WOULD REALLY TAKE THE LEAD OF, OF, OF THE CITY BECAUSE THAT'S REALLY A CITY PURVIEW.
AND IS THAT HOW, HOW THE LELAND UH, CONVERSION TO TWO-WAY CAME ABOUT? DID THE CITY PROPOSE THAT, OR WAS THAT HOUSTON FIRST IDEA? I DON'T REMEMBER HONESTLY WHOSE IDEA IT WAS, BUT IT IT, COUNCIL MEMBER MARTINEZ.
DO YOU REMEMBER? YEAH, I, IT WAS, IT WAS MY IDEA.
SO, SO, YOU KNOW, WE CAN'T DO ANYTHING WITHOUT, YOU KNOW, THE CITY'S APPROVAL ON ON THOSE, THOSE TYPES OF THINGS.
SO WE HAD TO GO THROUGH THE PROCESS AND CITY HAS TO, WELL, LET ME TOSS OUT AN IDEA.
TEXAS AND OR FRANKLIN OR SOME OTHER STREET, YOU KNOW, TO, UH, IMPROVE ACCESS.
BUT ONE OF THE THINGS WE TALKED ABOUT, MICHAEL, WAS WOULD HOUSTON FIRST BE WILLING TO PARTICIPATE IN, IN CONVENING A STAKEHOLDER GROUP, UH, TO TALK ABOUT EAST WEST MOBILITY, UH, AND COME UP WITH, WITH RECOMMENDATIONS? WOULD, WOULD YOU ALL SUPPORT THAT? WE WOULD ABSOLUTELY BE, BE HAPPY, UH, COUNCIL MEMBER TO BE PART OF SUCH A DISCUSSION AND BE PART OF A WORKING GROUP THAT, THAT LOOKS AT THOSE THINGS.
YOU KNOW, WE ARE A REALLY BIG STAKEHOLDER SITTING RIGHT THERE.
UH, SO WE'D BE, WE'D BE PLEASED TO BE ABLE TO BE PART OF THAT.
AND JUST TO, YOU KNOW, FOLLOW UP ON SOME OF THE QUESTIONS ABOUT EAST WEST CONNECTION.
UH, SO, UM, YOU KNOW, TEXAS COMMERCE FRANKLIN, THEY'RE NOT NEW CONVERSATIONS AS WELL.
THERE'S SOMETHING THAT I'VE BEEN PUSHING SINCE THE BEGINNING, UH, COUNCILMAN RAMIREZ.
BUT AS I MENTIONED TO YOU SEVERAL TIMES, PRIORITY FOR ME IS LELAND BECAUSE HOW THE PROXIMITY TO POLK, UM, IT'S NOT LOST THAT THESE OTHER, UH, EAST WEST CONNECTIONS ARE IMPORTANT.
AND I'VE CONTINUED TO DO THE WORK, UH, MAKING SURE THAT WE'RE BRINGING OTHER STAKEHOLDERS TO HELP WITH THE TRAFFIC STUDY.
SO CHRIS LARSON FROM DOWNTOWN PLUS IS INTERESTED IN, IN WANTING TO SEE SOME OF THAT ACCESS.
I THINK WE ALL HAVE A INTEREST IN MAKING SURE THAT EAST WEST CONNECTION INTO DOWNTOWN, AS MICHAEL STATED, IS A PRIORITY.
WE DON'T WANNA BUILD THIS PER SE, UH, QUOTE UNQUOTE WALL, AND NO ONE CAN GET IN.
THAT'S NOT THE, THAT'S NOT THE WORK THAT'S BEING DONE.
AND SO JUST TO BE, UH, MAKE SURE THAT WE'RE BEING VERY TRANSPARENT, UM, IT'S BEEN OVER SIX MONTHS.
THIS HAS PROBABLY BEEN ONE OF THE BIGGEST PRIORITIES ON MY TABLE.
UH, HENCE THE SEVERAL MEETINGS THAT I'VE HAD WITH NOT JUST HOUSTON FIRST WITH THE COMMUNITY, AND I'VE INVITED MANY OF Y'ALL TO THESE MEETINGS AS WELL.
UH, BUT IN THE FUTURE AS WE CONTINUE TO HAVE THESE EAST WEST CONNECTIONS, UM, JUST WANNA MAKE SURE THAT THESE ARE GOING TO CONTINUE TO BE OPEN TO EVERYONE.
UM, YOU KNOW, NOT JUST THE COMMUNITY, BUT TO MY COLLEAGUES TO CONTINUE TO BE PARTICIPATE.
UH, AND, AND AGAIN, JUST, UM, EAST WEST CONNECTION IS A PRIORITY AND WILL CONTINUE TO BE A PRIORITY.
I SEE NO OTHER COUNCIL MEMBERS IN THE QUEUE.
WE DO HAVE SOME PUBLIC SPEAKERS ON THIS ISSUE.
UM, THANK YOU VERY MUCH FOR YOUR PRESENTATION.
AND FOR ALL THE WORK THAT'S BEEN DONE ON THIS PROJECT.
[02:25:01]
I WILL START WITH DOMINIQUE MAZO.I DID TAKE THE 69 TO THE RED LINE AND, UH, WALKED OVER HERE IN THE TUNNEL SILL THAT TAKE SAY OF THAT.
UM, JOAQUIN, I'M GONNA TAKE SOMETHING, TAKE YOUR COMMENTS.
I'M GONNA TAKE THIS TO THE EXTREME.
THE GRB BELONGS IS A CITY OF HOUSTON BUILDING, THEREFORE IT BELONGS TO THE PEOPLE WHO ARE THE CITY.
I THINK THIS WHOLE GRB PROJECT, INCLUDING A, B AND C EXPANSION, UH, WHATEVER IT NEEDS TO BE WITH CHANGING STREET DIRECTIONS.
BY THE WAY, HE'S THE AVENUE, TEXAS AVENUE UNDER I 69 IS ALREADY TWO WAY STREET.
'CAUSE IT ALSO RUNS, UH, THE RED AND PURPLE, I MEAN THE PURPLE AND GREEN LINE UNDER I 69.
THAT SAID, WHY AREN'T WE PUTTING THIS TO A VOTE OF THE PEOPLE? IF WE'RE GONNA HAVE, IF WE'RE GONNA HAVE A CONVERSATION WITH THE COMMUNITY, WHY DON'T WE HAVE THE ULTIMATE CONVERSATION, PUT IT ON THE BALLOT? BECAUSE I'M HEARING CONCERNS.
YES, THIS IS A MONEY MAKER, BUT MY THING IS, IS I'M ALSO HEARING IS IF THIS IS SUCH A MONEY MAKER, SHOULDN'T THIS BE A, UH, PRIVATE PROJECT? SHOULD BE A TRIPLE P PROJECT.
ALSO TOO, WE, YOU KNOW, WE HAD A MEETING YESTERDAY ABOUT THE HOMELESS.
TO ME, THIS IS A, COULD BE A TITLE SIX VIOLATION, AT LEAST IN THEORY, THE PEOPLE WHO COME TO THESE CONVENTIONS HAVE MONEY THAT EVEN REGULAR HOUSTONIANS COULD NOT AFFORD TO GO TO.
I THINK THIS IS, I'M GOT JUSTICE UP HERE, BUT I'M SEEING TITLE SIX, AT LEAST THE SPARE TITLE SIX VIOLATIONS HERE.
SO I REALLY, REALLY THINK THIS HAS TO BE BROUGHT BEFORE THE CITY OF HOUSTON.
LET'S PUT IT THIS WAY, IF THIS WAS A METRO PROJECT, IT WOULD HAVE TO COME BEFORE THE VOTERS BECAUSE THE CITY CHARTER.
I THINK THINGS LIKE THE GRP, I THINK THINGS LIKE DETERRED DOING THINGS OTHER, OKAY, I CAN UNDERSTAND THEM.
PUTTING FLOWERS OR FIXING AN ADES SOMEWHERE, OR PUTTING BENCHES UP OR FIXING A BUS STOP THAT'S LOW INTENSITY STUFF.
I'M TALKING THINGS LIKE SHEPHERD DURHAM.
I'M TALKING THINGS LIKE S YES, I ALSO TOO, I THINK THAT NEEDS BETTER FOR PEOPLE.
AND LASTLY, SINCE WE'RE DEALING WITH BUDGETS HERE, IF WE'RE GONNA BE UP AGAINST A CAP, LIKE WE, LIKE, LIKE WE ARE TALKING ABOUT, I THINK THE TURDS ARE GONNA HAVE TO HAVE TO DO SOMETHING.
THEY'RE GONNA HAVE TO COMPLETELY STOP BY GIVING NEW STUFF.
THEY PAY OFF THE LOANS THAT THEY HAVE AND THAT MONEY COMES INTO THE GENERAL FUND.
I THINK THAT THIS WHOLE THING, UH, HOUSTON FIRST AND THE CHURCH, I THINK THAT THIS, THE HORSESHOE REALLY GONNA HAVE TO LOOK VERY CAREFULLY ABOUT WHAT'S HAPPENING.
REALLY APPRECIATE YOUR BEING HERE AND ALWAYS, ALWAYS GOOD TO SEE YOU.
MADAM CHAIR AND MEMBERS OF THE COMMITTEE, I WANNA THANK YOU FOR ALL THE WORK YOU'RE DOING ON THIS PROJECT AND ON BEHALF OF OUR CITY.
UM, TO BE CLEAR, PEOPLE FOR POLK HAS NEVER BEEN AGAINST THE EXPANSION OF THE GRB.
OUR CONCERN IS ABOUT THE TRANSPORTATION FABRIC AND THE QUALITY OF LIFE IMPLICATIONS OF THE CURRENT DESIGN.
TODAY, HOUSTON FIRST CORPORATION HAS SPENT $108.6 MILLION ON THE CONVENTION DISTRICT EXPANSION WITHOUT A FINAL BUDGET.
THEY'VE BEGUN CONSTRUCTION ON A $40 MILLION BELL STREET EXPANSION GARAGE WITH FEWER SPACES THAN THE PERFECTLY FUNCTIONAL ONE THEY PLAN TO DEMOLISH IN 2026 RIGHT BEFORE FIFA.
THIS IS POOR SEQUENCING, POOR PLANNING, AND POOR STEWARDSHIP OF PUBLIC FUNDS.
MEANWHILE, WE'VE HEARD NOTHING SUBSTANTIVE OF THE PROMISE.
TWO-WAY LELAND ALTERNATIVE, HOW MUCH WILL IT COST? WILL IT EXTEND ACROSS DOWNTOWN TO LOUISIANA, WHICH WE WOULD SUPPORT OR STOP AT AUSTIN STREET? WILL HOUSTON FIRST CORPORATION PAY FOR IT? WILL THIS
[02:30:01]
PROPOSAL ACCOMMODATE BICYCLES, BUSES, AND PEDESTRIANS? WILL IT BE OPERATIONAL BEFORE THE CLOSURE OF POLK STREET? THESE UNANSWERED QUESTIONS SHOW THIS PLAN IS NOT RIPE FOR VOTE.ADDITIONALLY, THERE'S BEEN NO PUBLIC UNVEILING OF HOW T DOTS AND HHIP PLAN WILL BE CHANGED TO MAKE ROOM FOR HOUSTON FIRST CORPORATION'S EXPANSION PLAN AND POTENTIAL ADDITIONAL COSTS.
AS RECENTLY AS SEPTEMBER 29TH, SENATOR UH, CAROL ALVARADO'S STATE OF THE DISTRICT EVENT HOSTED TDOT'S, UH, PUBLIC SPOKESMAN.
AND THE DESIGN HE WAS PRESENTING WAS THE DESIGN THAT THE CITY OF HOUSTON SETTLED WITH TDOT, UH, TO ADDRESS THE INEQUITY, UH, CLAIMS. WHAT FUNDS WILL BE PROVIDING FOR THIS CHANGE OF PLAN? IF YOU DO AWAY WITH POLK STREET, WHICH IS CURRENTLY IN THE N-H-H-I-P PLAN, UM, WE WILL THE MONEY BE SPENT TWICE.
SO WE'RE GOING TO RUSH TO GET THIS DONE.
FOR THE REPUBLICAN NATIONAL CONVENTION IN 2026, ONLY THEY HAVE TO BE TORN UP AS THE N-H-H-I-P UH, EXPANSION TAKES PLACE THAT SO THEN PUBLIC FUNDS WILL BE SPENT, UM, POTENTIALLY TWICE.
THERE'S BEEN A LACK OF FINANCIAL TRANSPARENCY ABOUT THE GRB EXPANSION FROM THE TIME OF ITS UNVEILING IN MARCH UNTIL NOW.
23 IN CALLING FOR FINANCIAL TRANSPARENCY AND ACCOUNTABILITY OF HOUSTON FIRST CORPORATION.
OUR WORKERS ARE THE FACE OF OUR CITY'S HOSPITALITY INDUSTRY AND THEY DESERVE CLARITY, NOT CLOSED DOORS, DECISIONS AS DO NEIGHBORS.
FINALLY, THE CITY'S JRC PROCESS REQUIRES THAT APPRAISALS BE COMPLETED BEFORE STREET ABANDONMENT.
THE APPRAISALS OF THE SIX PUBLIC RIGHTS OF WAY PROPOSED FOR THE ABANDONMENT FOR THE GRB EXPANSION HAVE NOT BEEN COMPLETED UNTIL THEY ARE COUNCIL CANNOT RESPONSIBLY VOTE.
WE ENCOURAGE YOU TO HOLD OFF ON APPROVING THIS PROJECT UNTIL THE PROCESS IS COMPLETE.
UM, I'M HERE TODAY TO ADDRESS THE FISCAL AND GOVERNANCE RISK OF THE CONVENTION DISTRICT EXPANSION PROJECT.
AS YOU HEARD TODAY, THE DEBT STRUCTURE SPANS THREE DECADES.
WILL THEY BE STILL PAYING FOR THIS RENOVATION WHEN THE NEXT RENOVATION IS BECOMES NECESSARY? UM, SOMETHING THAT WAS LEFT OUT WAS THAT THE HOTEL OCCUPANCY TAX REVENUE IS DOWN 4.7%, YET HOUSTON FIRST IS STILL PROPOSING WE LOCK UP THIS CRITICAL FUNDING STREAM FOR 30 YEARS.
UM, THAT WOULD STARVE ARTS PARK, SMALL BUSINESS SUPPORT, INFRASTRUCTURE IMPROVEMENTS AND THE CAT PARK.
THERE IS, THERE IS MONEY FOR THE IMPROVEMENTS.
PHASE ONE OF THE GRB TRANSFORMATION IS ONLY AT 50%.
DESIGN DEVELOPMENT, THERE'S TIME TO SCALE BACK SPENDING AND INVEST MOBILITY INFRASTRUCTURE.
PHASE TWO DESIGN HAS NOT EVEN BEGUN.
PLENTY OF TIME TO FUND THE CAT PARK AND FURTHER MITIGATIONS.
TO ME, THIS IS LIKE BLOWING A BONUS ON A LUXURY CAR INSTEAD OF MAKING RESPONSIBLE HOME REPAIRS.
UH, SAFE PLANS FOR EVERYONE IN THE IMMEDIATE AREA AROUND YOU FROM THE VERY START.
THIS EXPANSION PLANNING HAS BEEN EGREGIOUSLY OUT OF ORDER.
WAS THE ECONOMIC FEASIBILITY OF A DESIGN ALTERNATIVE THAT PER PRESERVES POLK EVER STUDIED.
UM, THE JRC ABANDONMENT APPLICATION SHOULD HAVE FOLLOWED COMMUNITY ENGAGEMENT, SHOULD HAVE FOLLOWED A TRAFFIC IMPACT ANALYSIS ANALYSIS.
IT SHOULD HAVE FOLLOWED A FEASIBILITY STUDY AND UM, AND FOLLOWED AN UPDATED MASTER PLAN.
WHERE IS THAT MASTER PLAN? HOUSTON FIRST DECLARED THE PROJECT FINANCING ZONE IN AUGUST OF 2023.
COUNCIL AND THE PUBLIC HEARD NOTHING UNTIL FEBRUARY, 2025.
WILL WE ALLOW POLK STREET SPATE TO BE DECIDED BY ARROGANCE AND A PROCESS THAT VALUED CONVENIENCE FOR A FEW OVER CONNECTIVITY FOR MANY? UM, THE HYUNDAI FEASIBILITY STUDY RELIES ON OPTIMISTIC SCENARIOS.
IT UNDERRATE RISKS LIKE ECONOMIC DOWNTURNS, THE TEXAS AND NATIONAL CONVENTION MARKET COMPETITION AND INTERNATIONAL TRAVEL DISRUPTIONS, UM, THAT ARE STRAINED BY INFLATION.
THE STUDY ALSO DID NOT IN INCRE ADDRESS INCREASED MAINTENANCE COST OF THE SHOWY DESIGN, ALL THE GLASS, ALL THE WINDOWS WE KNOW, UM, THAT'S GONNA BE EXPENSIVE TO MAINTAIN HEAT COOL OVER OVER THE YEARS.
UM, ONE THING WE HAVE TO REMEMBER IS THE CITY NOT HOUSTON FIRST BEARS THE DEBT RISK.
HAVE THE FINANCE DEPARTMENT AND CONTROLLER'S OFFICE WEIGHED IN ON THIS PLAN? HAVE THEY SEEN THE ENTIRE HYUNDAI REPORT? WE URGE YOU TO TO DEMAND A FOLLOWING BEFORE MOVING FORWARD.
POLK STREET MUST REMAIN OPEN UNTIL ALL PLANNING IS COMPLETE.
UH, UH, EXPANSION BUDGET MUST BE PRESENTED BEFORE ANY COUNCIL
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VOTE.I UNDERSTAND HOUSTON FIRST BOARD WILL CONSIDER THIS AT THEIR NOVEMBER BOARD MEETING.
SO LET'S, UH, POSTPONE IT TILL THEN.
UM, ALSO A UNIFIED PLAN WITH TXDOT METRO AND PUBLIC WORK SHOULD BE IN PLACE BEFORE PROCEEDING AS WELL AS THE APPRAISALS AND DEDICATED MITIGATION FUNDING.
HOUSTON FIRST CHOSE TO PUT THE CART BEFORE THE HORSE.
THAT ACCOUNTABILITY ISN'T OPTIONABLE ISN'T OPTIONAL.
UM, DEMAND HOUSTON FIRST MEETS THE BURDEN OF PROOF THAT POLK POLKS ONLY OPTION IS CLOSURE.
WE DON'T BELIEVE WE SHOULD DO NOTHING.
WE BELIEVE WE CAN BE COMPETITIVE WITH A PROGRESSIVE DESIGN THAT PRESERVES EXCESS.
NEXT WE'LL HEAR, UM, ON VIRTUAL HAYWOOD SANDERS.
MR. SANDERS, THE FLOOR IS YOURS.
IF YOU NEED TO PUSH THAT ON YOUR PHONE.
UH, GOOD MORNING CHAIR AND MEMBERS OF THE BUDGET AND FISCAL AFFAIRS COMMITTEE.
MY NAME IS ROY HIRSCH AND I'M HERE ON BEHALF OF PEOPLE FOR POLK TO URGE FISCAL CAUTION AND ACCOUNTABILITY AS YOU EVALUATE THE CONVENTION DISTRICT TRANSFORMATION PROJECT.
HOUSTON FIRST CORPORATION CANNOT ISSUE DEBT ON ITS OWN.
IT RELIES ENTIRELY ON THE CITY OF HOUSTON TO DO SO.
EVERY DOLLAR BORROWED WILL APPEAR ON THE CITY'S BOOKS AND IMPACT ITS ABILITIES TO INVEST IN FUTURE PRIORITIES.
AND WITH OUR BOND RATING ALREADY AT AA WITH A NEGATIVE OUTLOOK, DEBT CAPACITY IS PRECIOUS.
WE MUST PRESERVE IT FOR CRITICAL NEEDS.
INFRASTRUCTURE, HOUSING RESILIENCE, NOT SPECULATIVE PROJECTS.
THE A HUNDRED FEASIBILITY STUDY ASSUMES OPTIMISTIC GROWTH IN HOTEL DEMAND IN INTERNATIONAL TRAVEL.
DESPITE CLEAR SIGNS THAT INFLATION WILL CONSTRAIN LONG HAUL TOURISM IN THE COMING DECADE, IT ALSO OVERLOOKS THE MANY CAUTIONARY TALES FROM OTHER CITIES.
CONVENTION EXPANSIONS ACROSS THE COUNTRY THAT RAN OVER BUDGET BEHIND SCHEDULE AND UNDERPERFORMED THEIR PROJECTIONS.
WE RISK REPEATING THEIR MISTAKES.
AND WITH 30 YEARS OF DEBT SERVICE, THIS PROJECT COULD STILL BE ON THE BOOKS BEFORE THE NEXT GRB RENOVATION IS EVEN DUE.
THE LAST MAJOR EXPANSION WAS JUST 23 YEARS AGO.
IN 2002, WE URGE YOU TO PAUSE ANY ABANDONMENT VOTE UNTIL APPRAISAL FOR THE SIXTH RIGHT OF WAYS ARE COMPLETE AND THESE PROCEEDS ARE EARMARKED FOR, UH, COMPREHENSIVE EAST END MOBILITY STUDY AND IMPLEMENTATION OF MITIGATION RECOMMENDATIONS.
MEMBERS, YOU HAVE A FIDUCIARY DUTY TO PROTECT HOUSTON'S FISCAL FUTURE.
PLEASE DEMAND A FULLY VETTED AND PUBLISHED BUDGET, CONSERVATIVE FORECASTING AND PUBLIC ACCOUNTABILITY BEFORE ADVANCING THIS PLAN.
AND I'D LIKE TO ALSO PUT FORTH ONE QUESTION THAT I THINK IS VERY PRUDENT WITH RESPECT TO THE CLOSURE OF POLK STREET.
WHY CAN'T HUDEN HUNTINGDON, EXCUSE ME, GIVE A PROJECTION OF THE PROFIT LOSS IN DOLLARS OF THIS EXPANSION FROM NOT CLOSING POLK STREET SO WE CAN EVALUATE THAT INTO THEIR PROFIT PROJECTIONS? THANK YOU VERY MUCH.
DO WE HAVE ANY OTHER SPEAKERS THAT WOULD LIKE TO SPEAK ON THE HOUSTON FIRST OR ANY OTHER ITEM THAT WE ADDRESS TODAY AT THE BUDGET AND FISCAL AFFAIRS MEETING? SEEING NONE, WE ARE ADJOURNED.
THERE BE A SPECIAL CALLED MEETING ON OCTOBER.
OH, THERE WILL BE A SPECIAL CALLED MEETING ON OCTOBER 28TH AT 20TH 20TH AT 10:00 AM C PROCESS ON THE CIP PROCESS AMENDMENTS THAT WE DEALT WITH.