* This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting. [00:00:20] IT MEANS SO MUCH TO NOT ONLY ME, BUT I'M STANDING HERE REPRESENTING THE CITY OF HOUSTON, 2.3 MILLION PLUS, AND GROWING BEFORE I, WE GET TO THE PROPOSALS THAT WE WILL PRESENT TODAY. I THINK IT'D BE REASONABLE TO GO AND SHARE HOW WE GOT TO THIS POINT. A LITTLE OVER THREE YEARS AGO, I GOT A CALL FROM HOUSTONIANS, A DIVERSE GROUP OF CONCERNED CITIZENS WHO REQUESTED ME TO COME BACK TO HOUSTON, RUN FOR MAYOR. MY FIRST CALL I GOT FROM STEVE, I SAID, NO, I LIKE WHAT I'M DOING. I'M MAKING A DIFFERENCE IN AUSTIN, MAYBE AT ONE TIME, BUT NOT NOW. THEY CALLED BACK. A DIVERSE GROUP OF CITIZENS. USE YOUR EXPERIENCE AND RELATIONSHIPS. AND HAVING BEEN ON THE SENATE FINANCE FOR YEARS, CHAIRING CRIMINAL JUSTICE TO COME BACK BECAUSE WE'RE CONCERNED ABOUT PUBLIC SAFETY, THE INFRASTRUCTURE, QUALITY OF LIFE ISSUES, THE CITY'S FINANCES, THEY WOULDN'T SAY THEY WOULDN'T ACCEPT. NO. SO I SAID, OKAY, YOU TALK TO YOUR FRIENDS, I'LL TALK TO MY FRIENDS. WE MADE THE DECISION, HAD AN INTERESTING CAMPAIGN AND I DON'T REGRET ONE DAY THE DECISION I MADE. AND THAT'S WHAT BRINGS US HERE TODAY. I AM SO PROUD OF THE ACCOMPLISHMENTS THAT WE'VE REACHED IN APPROXIMATELY TWO AND A HALF YEARS. COULD NOT HAVE DONE IT ALONE WITH MY COLLEAGUES, THE DIRECTORS, HOUSTONIANS, PUBLIC SAFETY. WE'VE HIRED 800 ADDITIONAL CADETS. HPD NOW IS AT 5,400 OFFICERS, THE HIGHEST IN HISTORY. THE FIRE. WE'VE HIRED 600 FIREMEN. WE WERE DANGEROUSLY LOW OF EMS AND FIREFIGHTERS. QUALITY OF LIFE ISSUES IS A FOCUS AND WE'RE GONNA DISCUSS THAT TODAY BECAUSE CERTAINLY SOLID WAYS, PARKS AND OTHER ISSUES SUCH AS HOMELESS. AND I WILL CHALLENGE OR INVITE ALL OF YOU TO WALK ACROSS THE STREET TO TRANQUILITY PARK THAT THREE MONTHS AGO WAS AN ENCAMPMENT. IT'S GONNA BE RESTORED TO ITS ORIGINAL. HONORING OUR SPACE TRAVELERS BY OLD PLACE, THE OVERHANG, YOU COULDN'T WALK DOWN THE SIDEWALK, COULDN'T USE A HOBBY CENTER AND GO TOWARD THE AQUARIUM. IT'S EXCITING TO SEE WHAT WE'VE ACCOMPLISHED IN TWO AND A HALF YEARS. AND WE'RE REALLY JUST GETTING STARTED AND REALIZE IT'LL TAKE EIGHT YEARS TO FINISH OUR MISSION. BUT WE'RE NOT DOING THIS ALONE. IT'S THE COLLABORATION AGAIN OF THE PEOPLE THAT STAND BEHIND ME. THE FAITH COMMUNITY, THE PARTNERSHIP, HOUSTON PARTNERSHIP, MADE A STRONG ENDORSEMENT. SO THIS IS REALLY NOT MY PROPOSAL TODAY. IT'S THE COLLABORATION OF PEOPLE STAND BEHIND ME AND PEOPLE ACROSS HOUSTON. I WANT TO THANK HOUSTONIANS FOR THE OPPORTUNITY TO STAND HERE TODAY AND CONTRIBUTE TO A MAJOR ANNOUNCEMENT. THANK YOU, HOUSTONIANS. AS I CROSSED THIS CITY FOR YOUR KIND WORDS, YOUR ENCOURAGEMENT, I CAN SENSE THE IMPROVEMENT OF THE CITY'S MORALE. IT'S JUST YOU'VE, YOU NOTICE IT WHEN YOU'RE OUT IN PUBLIC, WHICH I DO OFTEN AND WE'RE NOT THROUGH. WE'RE JUST GETTING STARTED. LET ME QUICKLY MENTION WHAT THE BUDGET HIGHLIGHTS IN TERMS OF THAT ORIGINAL REQUEST COMEBACK, INFRASTRUCTURE, PUBLIC SAFETY, QUALITY OF LIFE ISSUES. WE'RE LISTENING TO THE PUBLIC. THIS NEW BUDGET WILL PUT AN ADDITIONAL $31 MILLION IN THE DRAINAGE DEDICATED FUND. WE LISTEN TO THE NORTHEAST RESIDENTS, WE LISTEN. THE NEW BUDGET WILL HAVE AN ADDITIONAL FIVE POLICE CADET CLASSES, 11 FIRE CADET CLASSES. THE OVERTIME IN THIS BUDGET REFLECTS THE DEMANDS [00:05:01] ON THE DEPARTMENT. WE'RE IN A DIFFERENT TIMES THAN WE WERE JUST A FEW SHORT YEARS AGO. POP-UP PROTEST ARE VERY FREQUENT, LARGE PROTESTS LIKE NO KING, WE MUST HAVE OVERTIME FOR OUR FIRE AND POLICE. THE POLICE AND FIRE MORALE HAS NEVER BEEN HIGHER. THE BENEFIT PACKAGE FOR FIRING POLICE. WE'RE MEETING, WE'RE FILLING OUR CADET CLASSES AND THEY'RE NOT LEAVING TO GO TO OTHER JURISDICTIONS. NOW, LET ME DIGRESS FOR A SECOND. WHEN I GOT ELECTED, NO ONE TOLD ME ABOUT THE JONES WATSON LAWSUIT THAT NO ONE HAD RESOLVED, THAT WE SAT DOWN WITH 'EM. RELATIONSHIPS MATTER. I'VE KNOWN BOB JONES FOR YEARS AND THEY WERE SO SUPPORTIVE OF THE CITY'S FUTURE THAT THEY LET US TRANSITION INTO THIS SETTLEMENT. THE FIREFIGHTERS DISPUTE MORALE AT ALL TIME. HOW THE FIRST CADET CLASS THAT I SPOKE TO, THE MONTH I WAS SWORN IN, HAD 30 CADETS IN IT. YOU TALK TO 'EM, THEY'LL SAY, WE'RE JUST GETTING CERTIFIED IN HOUSTON, THEN WE'RE GOING TO PARAMOUNT OR TOMBALL, YOU NAME IT, AUSTIN. SO THE MORALE OF THE PUBLIC SAFETY FIRST RESPONDERS ARE AN ALL TIME HIGH INFRASTRUCTURE. IT'S KIND OF BUMPING UP AGAINST PUBLIC SAFETY IS IS A TOP PRIORITY. TOUGH DECISIONS HAD TO MAKE A CHANGE AT THE DIRECTOR'S POSITION. RANDY'S BEEN OUTSTANDING, HIS TEAM'S OUTSTANDING. A GOAL OF A THOUSAND PAVED ROADS UNDER THE CURRENT BUDGET. WE'RE AT 750 MILES. PEOPLE ARE COMPLAINING ABOUT THE CONSTRUCTION AND IMPROVEMENT OF THE STREETS. GREAT AND CONGESTION, I'M SORRY, BUT THAT GOES WITH THE IMPROVEMENTS. 500 MILLION FOR DRAINAGE AND ROADS ALL TIME HIGH. SO THE NEW BUDGET CONTINUES THAT PROCESS. AND THERE ARE SO MANY NEEDS THAT I COULD LIST TODAY. BARK, IT HADN'T BEEN ANNOUNCED YET. MEMBERS, AND I'M NOT KEEPING IT FROM YOU, IT'S JUST, IT'S A PROCESS. WE WANT TO DO AN ADOPTION CENTER ON MEMORIAL IN THE OLD PUBLIC WORKS BUILDING FOR BARK BECAUSE IT'S CURRENT LOCATION. PEOPLE DO NOT DRIVE BY WITH THEIR FAMILY ON A BEAUTIFUL DAY. BART'S DRAWN UP THE PLANS FOR AN ADOPTION CENTER RIGHT ACROSS FROM FONDE CENTER. IT WILL BE MAGNIFICENT FOR OUR FOUR-LEGGED FRIENDS. SO MANY OTHER THINGS I COULD POINT TO, BUT HOW ARE WE GONNA PAY FOR IT? THAT'S THE CHALLENGE. THOSE PEOPLE THAT ASKED ME TO RUN SAID, WHITMEYER, WE KNOW YOU WON'T KICK THE CAN DOWN THE ROAD. YOU'VE GOT A RECORD OF ACCOMPLISHMENT IN THE LEGISLATURE. PENAL CODE REFORM. SECOND CHANCE FOR OFFENDERS, DRUG AND ALCOHOL TREATMENT. THEY'D BEEN ABUSED AND IGNORED FOR YEARS. AND IT WAS JUST A REVOLVING DOOR. LADIES AND GENTLEMEN, WE ARE NOT KICKING THE CAN DOWN IN MY ADMINISTRATION, SPEAKING TO THE INFRASTRUCTURE, PUBLIC SAFETY. AND NOW YOU HAVE TO PAY FOR IT. I'VE MENTIONED MANY TIMES I HAVE WORKED WITH NINE MAYORS COVERING 50 YEARS. LOUIS WELCH IN THE EARLY SEVENTIES, RIGHT THROUGH MAYOR TURNER . I'M NOT GONNA ACCUSE ALL OF THEM 'CAUSE THE ENVIRONMENT WAS DIFFERENT. THE PUBLIC WAS DIFFERENT. BUT WE'VE NEVER REALLY ADDRESSED THE SYSTEMIC, STRUCTURAL, FINANCIAL BROKEN SYSTEM OF RUNNING THE CITY OF HOUSTON. I'VE SAID MANY TIMES, FROM MY EXPERIENCE IN GOVERNMENT, IF YOU DON'T IDENTIFY YOU, IF YOU DON'T IDENTIFY AND ADMIT YOU HAVE A PROBLEM, YOU'LL NEVER FIX IT. SO BOB LANIER, ONE OF THE GREAT MAYORS, GOT 500 MILLION FROM METRO FOR POLICE OVERTIME. HE STILL STILL TALKED ABOUT HIS PUBLIC SAFETY INITIATIVE. OTHER MAYORS HAVE LAID OFF LARGE NUMBERS. OTHERS HAVE SOLD PROPERTY, OTHERS HAVE USED ONE TIME FEDERAL FUNDING. SO WHEN I GOT HERE THE FIRST YEAR WAS ONE OF DISCOVERY. YOU KNOW, PEOPLE WOULD ASK ME ON THE CAMPAIGN TRAIL, WHAT DO YOU THINK ABOUT CITY'S FINANCE? I SAID, WELL, I REALLY THINK YOU'RE GONNA HAVE TO GET THERE TO KNOW THE TRUE PICTURE BECAUSE IT HAD REALLY, REALLY NOT EVER BEEN DISCUSSED. IT'S NOT A NECESSARILY, THE FIRST THING PEOPLE ASK YOU ABOUT. THEY'RE CONCERNED ABOUT THEIR SAFETY AND [00:10:01] INFRASTRUCTURE, QUALITY OF LIFE. SO THE SECOND YEAR, THAT BEING THE BUDGET THAT WE'RE CURRENTLY OPERATED UNDER, WE BALANCED THE BUDGET THROUGH EFFICIENCIES, COLLABORATION, THE ERNS AND YOUNG REPORTS, PROBABLY THE SMARTEST THING I'VE DONE UP TO THIS POINT. IT GAVE US A ROADMAP OF HOW TO TRANSFORM CITY GOVERNMENT. WE ACTUALLY REDUCED THE SIZE OF THE CITY OF HOUSTON SERVICES AND ADMINISTRATION AND EMPLOYMENT BY 2%. 1,056 PEOPLE TOOK OUR INCENTIVE PACKAGE. GOOD CITY EMPLOYEES, THEY'D SERVED THEIR TIME. THEY, QUITE FRANKLY, I JOKE WITH A COUPLE OF 'EM THAT HAD ALREADY RETIRED. THEY JUST HADN'T OFFICIALLY ANNOUNCED IT. UH, THEY'LL GO UNNAMED . BUT WE DID THAT UNDER THE CURRENT BUDGET, THANK YOU TO THE COLLABORATION WITH OUR COUNTY COMMISSIONERS WHO MADE A BIG DIFFERENCE AND ARE STILL COOPERATING AND COLLABORATING AND THE OPERATION OF PARKS AND DEBRIS, PICKUP AND STREETS, AND OF COURSE THE ASSISTANCE OF THE STATE OF TEXAS. LET ME JUST EMPHASIZE, AS I'VE MENTIONED THIS SUBJECT, WE'RE NOT RAISING PROPERTY TAXES. IT'S NOT AN OPTION AT THIS POINT DUE TO THE CIRCUMSTANCES IN OUR COUNTRY CONCERNING AFFORDABILITY, THE COST OF A HOME. SO PROPERTY TAXES ARE NOT EVEN IN MY THOUGHT. ONCE WE PROVE OURSELF EFFICIENCY, AND THAT GOVERNMENT IS A SYSTEM AT THE LOCAL LEVEL YOU CAN TRUST. AND YES, I WILL SAY ELIMINATING CONFLICTS AND CORRUPTION ONCE WE CAN LOOK PEOPLE STRAIGHT EYE AND SAY, WE'VE DONE EVERYTHING WE CAN. AND QUITE FRANKLY, THAT'S PART OF THIS CONVERSATION. AND I WANT TO THANK THE COUNCIL. NOT ONLY THE SENIOR MEMBERS HAVE BEEN HERE FOUR YEARS LONGER THAN ME AND OUR, OUR NEW MEMBERS THAT CAME IN WITH ME, THEY'VE HAD REALLY SMART DISCUSSION. THEY'VE ADVISED ME ABOUT THE MOVE WE'RE MAKING. SO IT'S REALLY A COLLABORATIVE EFFORT AS WE STAND BEFORE YOU TODAY. BUT THE STATE OF TEXAS, WHILE WE DISAGREE WITH SOME OF THEIR POLICIES, STRONGLY, WE HAVE BEEN ABLE TO CONVINCE THEM AS HAS HOUSTON, HOW HOUSTON GOES IS HOW THE STATE OF TEXAS WILL GO. THEY USE OUR PORT TO SHIP THE LUBBOCK COTTON GROWERS PRODUCT. THEY CALL ME AS A HOUSTON SENATOR FROM AROUND THE STATE TO GET THEIR CONSTITUENTS ADMITTED IN THE MD ANDERSON. I COULD GO ON AND ON. WE HAVE WORKED AND CONVINCED AUSTIN THAT THEY NEED TO COLLABORATE WITH THE CITY OF HOUSTON. WE HAVE MORE WORK TO DO. BUT DURING BARRELL COUNTY RAISED PROPERTY TAXES, THAT'S THEIR DECISION. I HAD A COMMITMENT THAT WE WOULDN'T RATE PROPERTY TAXES EVEN AT THE URGING OF SOME OF MY COLLEAGUES. I WENT TO AUSTIN, MET WITH THE GOVERNOR, WE PUT OUR DIFFERENCES ASIDE AND WE GOT ENOUGH MONEY TO PICK UP THE DEBRIS FROM BARREL WITHOUT, WITHOUT PROPERTY TAX INCREASE. LAST SESSION, BEST SESSION IN HISTORY, A HUNDRED MILLION FOR A LIFT STATION TO SERVE THAT EAST SIDE WATER PLANT, WHICH IS IN NEED, A REPAIR TO DISTRIBUTE OUR WATER PARKS. LET ME THROW IN THE OTHER PARTNER. WE GOT THE FEDERAL GOVERNMENT. WE GOT $314 MILLION IN RECOVERY FUNDING TO FUND OUR, I COULDN'T BELIEVE THE FIRST STORM AS MAYOR, THE FIRE CHIEF WALKS IN SAYS, WE CAN'T USE STATION AND ELICIT IT BECAUSE THE POWER'S OUT. CAN'T GET, CAN'T GET THE DOORS UP. I SAID, NO, YOU'RE YOU'RE PULLING MY LEG. NO, THERE'S NOT A GENERATOR THERE. NO. SO ANGELA BLANCHARD, OUR RESILIENT OFFICER AND THE TEAM BEHIND ME GOT BUSY OF THE $314 MILLION RECOVERY MONEY, A HUNDRED, A HUNDRED MILLION FOR STRATEGIC LOCATIONS OF FIRE AND POLICE, OUR COOLING CENTERS THAT THE, THE HUB THAT EVERYONE TALKED ABOUT IN CASHMERE, THAT'S SOMETHING TO CELEBRATE. BUT IT DIDN'T HAVE BACKUP POWER. SO ANYWAY, YOU CAN SEE WHERE WE'RE GOING. THE STATE'S, OUR PARTNERS, WE NEED THEIR RESOURCES. WE NEED TO PARTNER WITH DALLAS, AUSTIN, SAN ANTONIO AND AND CONVINCE AUSTIN THAT WE NEED AN URBAN INITIATIVE. WE'VE DONE [00:15:01] ENOUGH FOR RURAL TEXAS. HISTORICALLY. THEY GOT THE BEST FARM TO MARKET ROAD IN THE NATION. WE HELP 'EM WITH BRUSH CONTROL, WE HELP 'EM WITH THEIR WATER. SO LET'S FOCUS WHERE THE PEOPLE LIVE, THE DIVERSE COMMUNITIES OF OUR GREAT CITIES. NOW HOW ARE WE GONNA PAY FOR IT? WE'RE GONNA LOOK AT REALITY. WE LEARNED SOME PROPOSALS FROM OTHER CITIES, SOME FROM OUR COLLEAGUES. WE'RE GONNA PUT SOLID WASTE INTO PUBLIC WORKS AND MAKE IT A UTILITY BEEN DONE IN ALL THE MAJOR CITIES. WE'LL RECEIVE 116 MILLION INTO GENERAL FUND MAKING THAT TRANSACTION. WE WILL ALSO GO FORWARD WITH A $5 ADMINISTRATION FEE. NOW LET ME EXPLAIN THAT BECAUSE IT WAS EASY REPORTING TO CALL IT A GARBAGE FEE. FOLKS, IN MY WORLD, A GARBAGE FEE IS NOT $5. WHEN IT GETS TO A LEVEL, I'LL BE THE FIRST TO JOIN MY COLLEAGUES AND SAY WE HAVE A GARBAGE FEE. BUT LEMME EXPLAIN. EXPLAIN HOW WE TALK ABOUT IT IN MY OFFICE. FIRST OF ALL, STATE LAW SAYS YOU CANNOT PROVIDE A UTILITY WHICH SOLID WASTE IS BECOMING WITHOUT A CHARGE. IT COULD HAVE BEEN $2, BUT WE WENT THE VERY MINIMUM OF FIVE. IT'LL CREATE A $24 MILLION REVENUE THE FIRST YEAR. WE'LL KEEP IT AT FIVE THE NEXT TWO YEARS AND THEN COUNCIL AND FUTURE BUDGETS WILL DETERMINE WHERE WE GO FROM THERE BECAUSE WE'RE NOT GONNA DO WHAT I WOULD CALL A GENUINE GARBAGE FEE UNTIL WE IMPROVE SERVICES. AND THAT'S THE BEAUTY OF PUTTING SOLID WASTE INTO PUBLIC WORKS. NOW, THIS WAS THE CASE UP UNTIL THE MID NINETIES. SOLID WASTE BELONGS IN PUBLIC WORKS. IT ENDED IN THE MID NINETIES AND PEOPLE AROUND HERE LONGER THAN ME SAY IT STARTED GOING DOWNHILL AFTER THAT. SEE, WE DIDN'T GET IN THIS CHALLENGE OVERNIGHT. IT'S BEEN COMING FOR YEARS, MANY YEARS. BUT SOLID WASTE BECAME THE STEPCHILD IN THE MID NINETIES. WE'LL COLLABORATE WITH PUBLIC WORKS, IT'LL CREATE A FUNDING MECHANISM. SERVICES WILL GET BETTER BECAUSE PUBLIC WORKS HAS A TRACK RECORD. AND OUR CURRENT DIRECTOR, HASSAN, AT SOLID WASTE, IS AN OUTSTANDING PUBLIC SERVANT. AND HE WILL BE RIGHT THERE. HE IS JUST ABOUT CAUGHT UP. JUST ABOUT CAUGHT UP. WE GAVE HIM PRIVATE CONTRACTORS FOR HEAVY TRASH. OF COURSE, HE'S SUCH AN UPBEAT PERSON. , HE'S GONNA BE AT THE FRONT OF THE LINE. SO IT'LL BE A $5 ADMINISTRATION FEE. WHY $5? WELL, THE STUDY THAT WE DID, A SOLID WASTE, WHICH WILL BE RELEASED, SAID THAT'S THE COST TO THE HOME, TO THE CITY TO PROVIDE THE SERVICE TO EACH HOMEOWNER. NOT JUST GOING OUT THERE AND PICKING UP THE TRASH AND RECYCLING HEAVY TRASH. THERE'S A $6 COST WHEN YOU GET BACK TO HEADQUARTERS. SO I'M NOT JOKING OR NOT BEING DIRECT, IT'S AN ADMINISTRATION FEE BY THAT DEFINITION. BUT I ALSO UNDERSTAND THAT GETS A LOT OF ATTENTION AND IT SHOULD. PASADENA CHARGES $34 FOR GARBAGE PICKUP LEAGUE CITY 22, SUGARLAND 24, AND PEARL LAND 23. AND MOST OF OUR FRIENDS THAT LIVE IN THE UNINCORPORATED PART OF HARRIS COUNTY ARE PAYING AS HIGH AS $40 TO A WATER DISTRICT. SO WE'RE DOING A FINE JOB OF PROTECTING HOUSTON RESIDENTS AND THEY WILL NOT PAY THIS ADMINISTRATION FEE UNLESS THEY'RE GETTING THE SERVICE. SO WE STILL HAVE A LOT OF WORK TO DO, BUT WHAT A GIANT FORWARD TO RECOGNIZE THAT THERE'S A BETTER WAY TO DO THIS. AND ALL THE OTHER CITIES DO THIS. MAJOR CITIES, ALL OF 'EM. DALLAS WATER UTILITY, AUSTIN POWER AND WATER, SAN ANTONIO GAS AND WATER. SO WE'RE ACTUALLY BORING A MODEL IN, IN MY ONLY QUESTION IS WHY DIDN'T THE CITY OF HOUSTON DO THIS A LONG TIME AGO? [00:20:01] I MEAN, IT'S JUST A PRACTICAL SOLUTION THAT'S WORKING IN ALL OF OUR OTHER CITIES. THEN THE NEXT THING WE'RE GONNA HAVE TO DO IS THE WATER UTILITY WILL PAY THE CITY OF HOUSTON FOR A RIGHT OF WAY FEE. OKAY? THAT'S AN INTERESTING CONCEPT. I KNOW IT TAKES A LITTLE WORK TO UNDERSTAND AND WE'RE GONNA HAVE A GREAT HEARING WITH MELISSA, THE FINANCIAL DIRECTOR, RANDY, ALL THE DIRECTORS BEFORE FINANCE TOMORROW AFTERNOON. AND NO ONE BETTER TO CHAIR THAT. AND COUNCIL MEMBER ALCORN FAST EXPERIENCE IN CITY FINANCES, BUT OTHER CITIES DO IT. WE'RE CHARGING A $5, 5% OF THE GROSS REVENUE OF WATER WILL BE USED. 95% WILL STAY RIGHT THERE IN THE WATER FUND TO ENSURE THAT WE GOT PROPER DISTRIBUTION AND RESOURCES FROM OUR WATER FUND. DALLAS CHARGES 20% OF ITS GROSS WATER SYSTEM, 14% FROM SAN AN ANTONIO, 12 AUSTIN, 12% OF THE GROSS OF THEIR ENERGY COMPANY AND 8% OF WATER. SO REALLY WE'VE BEEN FOOLING OURSELVES FOR A LONG TIME. THERE IS A TREMENDOUS SOURCE OF REVENUE THAT OTHER CITIES ARE USING AND FOR WHATEVER REASON, CITY OF HOUSTON DIDN'T THAT THAT GAINS YOU $104 MILLION. SO WE'RE JUST ABOUT TAKING CARE OF THAT SHORTFALL. AND THE REAL EXCITING THING IS IT GOES FORWARD. EVERYTHING I'M TALKING ABOUT IS JUST THE BEGINNING. IT'S GONNA GET BETTER IN FUTURE YEARS. IT'S THE, IT'S THE FINANCIAL SECURITY FOR THE CITY OF HOUSTON. IT'S THE HEALTH OF THE CITY'S FINANCES AND GETTING BACK TO THAT $5 ADMINISTRATION FEE, IT'S CONCEIVABLE, IF WE'RE SMART, WE MAY NEVER HAVE TO RAISE IT. WE HAVE FIVE TRANSFER STATIONS, ONLY TWO OF 'EM ARE WORKING AND THEY'RE BEING RUN BY THE PRIVATE SECTOR. IF WE GET OUR FIVE TRANSFER STATIONS AND THEY'RE RUNNING LIKE THEY SHOULD, THERE'S A DISCUSSION THAT WE COULD USE THAT AS A REVENUE STREAM AND OFFSET ANY NEED FOR A HIGHER ADMINISTRATION FEE. ULTIMATELY A GARBAGE FEE. SO FOLKS, A LOT OF WORK WENT INTO THIS. IT'S TOUGH FINANCE DEPARTMENT LAST WEEK. THEY WENT HOME AT FOUR O'CLOCK IN THE MORNING. IT'S UNBELIEVABLE. SO WE'LL HAVE THAT HEARING TOMORROW AFTERNOON. IT WILL NOT ENDANGER ANY PROJECTS THAT THE WATER FUND IS CURRENTLY OPERATING OR PLANNING. WE'RE BUILDING A $4 BILLION EAST SIDE WATER PLANT WITH THE HELP OF THE STATE WATER BOARD. REMEMBER WHEN I WARNED PEOPLE ABOUT WE DON'T WANT TO LOSE OUR SOURCE AT THE STATE $4 BILLION LOAN? NOT, NOT STRIKE THAT. NOT A TOTAL AMOUNT. THE TOTAL COST WOULD BE 4 BILLION. WE'RE ALSO GETTING MONEY FROM THE FEDERAL GOVERNMENT. SO IN THE PROPOSED BUDGET, IT ADDRESSES IT, IT PUBLIC SAFETY, INFRASTRUCTURE, QUALITY OF LIFE, CERTAINLY INCLUDING SOLID WASTE, GOOD SERVICE, BETTER SERVICES. WE GOTTA DO SOMETHING ABOUT ILLEGAL DUMPING THAT'LL CONSTANTLY CONTINUE TO BE A CHALLENGE. HBDS HERE THIS MORNING, THEY'RE BEGINNING TO PROSECUTE PEOPLE. THAT'S GONNA HOPEFULLY BE A STEP OF IMPROVEMENT. WE'RE WORKING WITH THE DA SOLID WASTE ALMOST CAUGHT UP, BUT IT'LL BE A CONSTANT. WE'VE GOT TO EDUCATE HOUSTONIANS THAT ONE, YOU ONLY PUT ITEMS THAT YOU WOULD EXPECT THE CITY TO PICK UP WITH HEAVY TRASH. YOU CAN'T EVICT SOMEBODY AND PUT THE ENTIRE HOUSEHOLD BELONGINGS IN FURNITURE ON THE CURB. SO WE HAVE AN EDUCATION OF DON'T, I'M NOT GONNA STEAL T DOTS. DON'T MESS WITH TEXAS. THEY PROBABLY GOT THAT COPYRIGHTED. I'M CERTAIN THEY DO , BUT WE NEED A, WE JUST, UH, DON'T MESS WITH HOUSTON INITIATIVE. BUT THESE FINANCIAL STEPS ARE SIGNIFICANT. I DON'T MIND QUESTIONS AND ANSWERS OF WHY YOU DID IT THIS WAY. THE REVENUE STREAM THAT IT'S GONNA CREATE. THE, THE, THE WATER FUND HAS $1.2 BILLION IN IT. SO WE'RE NOT RAISING [00:25:01] FEES OR TAXES. WE'RE USING TAXPAYERS MONEY THAT HAVE BEEN IN AN ACCOUNT THAT MOST PEOPLE PROBABLY DON'T DISCUSS. AND WE HAVE NEEDS, BUT THAT FUND'S CONTINUING TO GROW AND GROW. SO WE'RE NOT JEOPARDIZING IT. AND I'M JUST DARN PROUD TO STAND BEFORE YOU WITH SOME REALLY DEDICATED PUBLIC SERVANTS. AND WE'RE READY TO GO TO WORK IF THERE'S SPECIFIC QUESTIONS ABOUT THE BUDGET. MELISSA'S HERE. RANDY RUNS PUBLIC WORKS. ANY, ANY OF THE DIRECTORS THAT YOU WANNA FOCUS ON? UH, COUNCIL MEMBER ALCORN AND I ARE WORKING TO TRY TO IMPROVE OUR PARKS, GET SOME MATCHING FUNDS, HOMELESS. WE'RE GONNA OPEN EMANCIPATION ON MAY 27TH. IT'S GONNA BE A GAME CHANGER. I WANNA QUIT GETTING FOOD, NOT BOMBS FROM FEEDING THE HOMELESS ACROSS THE STREET AT THE LIBRARY. BREAK DOWN OUR ENCAMPMENTS, PROVIDE A HOLISTIC APPROACH FOR THE HOMELESS, REMOVE THEM FROM THE NEIGHBORHOODS. SO I, I, I COULD STAND UP HERE AND TALK FOLKS, AS YOU CAN TELL, BECAUSE I'M EXCITED. WE'RE HEADED ON THE RIGHT PATH AND WE'LL HAVE CRITICS. SURE, THAT'S PART OF MY JOB. I WOULD ASK THEM WHAT'S THEIR PLAN. SEE, I DIDN'T RUN FOR THIS, THIS JOB OR WASN'T ASKED TO RUN FOR IT BECAUSE I NEEDED A POLITICAL CAREER. I'D HAD A GOOD ONE NOR BECAUSE I WAS TERM LIMITED. I'M HERE TO FIX HOUSTON WITH MY COLLEAGUES AND THESE DIRECTORS. SOME HAVE COME OUTTA RETIREMENT TO WORK, SOME HAVE LEFT BETTER PAYING JOBS TO WORK. SO AS I OFTEN SAY, LET'S GO TO WORK THIS MORNING, I'M GONNA SAY LET'S KEEP ON WORKING. ANY QUESTIONS THAT I CAN, UH, HELP YOU WITH? YES, YOU HAVE A, OR THE CITY HAS A SPONSORSHIP PROGRAM FOR PEOPLE WHO ARE OPTING OUTTA CITY TRASH. IS THAT PROGRAM GONNA CONTINUE? I'M SORRY, WHAT? THE SPONSORSHIP PROGRAM FOR, UM, CITY TRASH. THAT THAT'LL BE UNDER DISCUSSION WHEN WE GET THROUGH WITH THIS MERGER. OKAY. AND UM, I WAS CURIOUS TOO, HOW MUCH REVENUE IS THE, UM, ADMINISTRATIVE FEE GOING TO GENERATE OVER THE NEXT COUPLE YEARS? THE ADMINISTRATIVE FEE? 24 MILLION. 24 MILLION. OKAY. AND WE'LL DO IT AT FIVE THE NEXT TWO YEARS. UM, ANY INCREASE HAS TO BE IN THE BUDGET HAS TO BE APPROVED. WE'LL TALK TO CITIZENS OF HOUSTON, WE'LL SEE WHAT IMPROVEMENTS AND WHAT QUALITY OF LIFE ISSUES WE WANT TO DO HANDLED. YES MA'AM. MAYOR. UM, FOR THE FIVE, 5% RENTAL FEE, HOW MUCH OF AN INCREMENT IN A REGULAR HOUSTONIAN LIFE, LIFE WILL BE? SEE BECAUSE OF THIS INCREASE, HOW WILL THEY REALIZE AN IMPROVEMENT? UH, NO, FOR THE UTILITIES. HOW WILL THAT IMPACT A REGULAR HOUSTONIANS DAILY? VERY, VERY MINIMAL. 95% OF THAT 1.2 BILLION AND GROWING WILL CONTINUE TO BE DEDICATED TO THE, UH, WATER FUND MAYOR ABOUT THE ADMINISTRATIVE FEE TOO. I KNOW OBVIOUSLY THAT'S GONNA KEEP INCREASING OVER THE YEARS UNTIL TO MAYBE, MAYBE NOT, MAYBE NOT. YES. BUT, UM, ONE THING I WAS CURIOUS ABOUT, ARE THERE GONNA BE ANY, UH, ALTERNATE OR ALTERNATIVE FEE OPTIONS FOR LOW INCOME OR THAT'LL BE PART OF THE DISCUSSION IF WE GO ABOVE THE FIVE, UH, THE FIVE IS LOWER THAN THE EXEMPTIONS OF ALL OUR LARGE CITIES. THEY DO A SENIOR CITIZEN EXEMPTION AND IT DOESN'T GET DOWN TO THE FIVE THAT WE'RE PROPOSING. WE'RE TALKING TO DENVER. THEY INITIATED A PLAN AND THEY HAVE DIFFERENT LEVELS. SOME, SOME DISCUSS BY THE AMOUNT OF GARBAGE YOU HAVE. SO, YOU KNOW, I'VE GOT SOME VERY SMART DIRECTORS. WE'RE GONNA DO THIS MERGER, WE'RE GONNA LISTEN TO COUNCIL, BUT MORE IMPORTANTLY, WE'RE GONNA LISTEN TO HOUSTONIANS. PEOPLE KNOW, IN FACT, LET ME SHARE THIS PIECE OF INFORMATION. THE NUMBER ONE CALLS WE GET IN MY OFFICE FOR SEVERAL MONTHS NOW HAS BEEN SOLID WASTE GARBAGE. SO WE HEAR YOU. I HAVE REPLACED THE DIRECTORS IN THE MIDDLE OF THIS DISCUSSION. THE CITY HAD A PRACTICE OF BUYING USED TRUCKS. SO WHEN MR. L GOT THERE, HASSEN, HE SAID, MAN, HALF OF MY TRUCKS ARE IN THE SHOP. SO WE REPLACED THE DIRECTOR, GOT NEW EQUIPMENT, GOT PRIVATE CONTRACTORS, WHICH WAS HEAVY. SO THIS IS A GIANT STEP OF ADDRESSING THE SOLID WASTE SERVICE, WHICH IS REAL IMPORTANT. MAY MAYOR, UH, YOU SAID, WHY DIDN'T [00:30:01] THE CITY OF HOUSTON DO THIS SOONER? SURE. THIS IS YOUR THIRD BUDGET PROPOSAL. WHY IS THE TIMING RIGHT NOW FOR THIS? BECAUSE I WANNA FIX HOUSTON. IT'S JUST ABOUT THAT SIMPLE. I WAS ASKED TO RUN TO FIX HOUSTON, BRING MY RELATIONSHIPS AND EXPERIENCE TO THE TABLE AND IT'S WORKING. SO WHY NOW? BECAUSE IT'S NEEDED. I ACCEPT THAT RESPONSIBILITY. I THINK THIS DISPLAY OF COUNSEL UNDERSTANDING SPEAKS FOR ITSELF. CAN YOU EXPLAIN, UM, HOW YOU MAY HAVE ADDRESSED ACCOUNTABILITY FOR THIS BUDGET? YOU KNOW, FIRE OVERTIME OR FIRE OVER COST 73 MILLION MORE THAN YOU HAD BUDGETED IN YOUR PROPOSAL? SURE. THE HOTEL OCCUPANCY TAX WAS 15 MILLION SHORT OF WHAT YOUR BUDGET HAD. AND THEN ALSO THINGS LIKE, UM, AN EY CONTRACT FOR $4 MILLION THAT YOU ALL SAID WOULD GENERATE OR SAVINGS OF 17.5 MILLION ONLY NETTED 300,000 ACCORDING TO YOUR OFFICIALS. SO WHAT HAVE YOU DONE THIS TIME AROUND FOR ACCOUNTABILITY TO MAKE SURE YOUR NUMBERS DO MATCH UP? WELL, FIRST OF ALL, WE'RE NOT LISTENING TO OUR CRITICS. I'M NEVER GONNA SHORTCHANGE POLICE AND FIRE. THE PROJECTIONS FOR OVERTIME IS JUST THAT THE WORLD'S A DIFFERENT PLACE THAN WHEN I GOT HERE TWO YEARS AGO. WITH THE TURMOIL IN THE WORLD AND IN OUR COMMUNITY, YOU HAVE TO BE READY WITH AS MANY FIRST RESPONDERS IS NECESSARY. I HAVE PROTESTORS IN FRONT OF MY HOUSE FROM NINE TO 11. THEY'RE VERY AGGRESSIVE. THAT EATS UP SOME OVERTIME. OUR MOSQUE, OUR SYNAGOGUES, I CAN GO ON A THOSE WHO WOULD CRITICIZE THE OVERTIME IS, UH, SIMILAR TO DEFUNDING POLICE. AND I MEAN THAT SINCERELY. WE ARE DOING IN THIS BUDGET WHAT WE BELIEVE IS A BETTER PROJECTION BASED ON TODAY'S ENVIRONMENT AND THE NEED FOR FIRST RESPONDERS. WE GOT FIFA COMING. WE'VE BEEN DISCOVERED. WE HAD THE BEST SPRING OCCUPANCY IN OUR HOTELS IN HISTORY BACK TO BACK 70,000 CHEERLEADERS. THE WORLD BASEBALL CLASSIC. I CAN GO ON AND ON. WE'VE BEEN NOTICED. WE'RE ON A ROLL AND I HAVEN'T EVEN TALKED ABOUT THE ECONOMY. RATED NUMBER ONE IN MANUFACTURING JOBS RECENTLY, SECOND TO SEATTLE IN ECONOMIC GROWTH IN SEATTLE. COMPLETELY SHUT DOWN DURING COVID. SO THEY REALLY ARE NOT A GOOD COMPARISON IF YOU HAVEN'T BEEN BY THE GEORGE BROWN. AUSTIN AND DALLAS ARE TRYING TO IMPROVE AND DOUBLE THEIR CONVENTION CENTERS. WE'RE DOING IT IN TWO YEARS. POOR AUSTIN MAY DO IT IN FIVE AND DALLAS DOESN'T KNOW WHERE TO FIND THE MONEY TO COMPLETE. AND I DON'T, I DON'T ENJOY STANDING UP HERE IN COMPARISON, OUR SUCCESS TO OTHER CITIES. BUT IT'S THE TRUTH. I HAVE OTHER CITIES CALL ME AND SAY, HOW ARE YOU DOING IT? A 18 HOUR DAYS, SOMETIMES SEVEN DAYS A WEEK, IT BE IN YOUR LIFE. THAT'S HOW YOU'RE DOING IT. SO THE PROJECTIONS ARE THAT I THINK THIS BUDGET REFLECTS THAT THE MONIES THAT MAYBE THE HOTEL OCCUPANCY TAX DIDN'T PROJECT INTO CURRENT BUDGET. I JUST TOLD YOU THE OCCUPANCY IS AN ALL TIME HIGH. MARCH WAS THE BIGGEST MONTH IN THE CITY'S HISTORY. WE'RE ON A ROLL THAT IMPROVES OUR REVENUE STREAM. SO WE'VE GOT A, WE'VE GOT A STORY TO TELL. I WANTED TO FOLLOW UP ON THE ERNST AND YOUNG STUDY. SURE. UM, YOU KNOW, PAID THIS FIRM MILLIONS OF DOLLARS. THE ADMINISTRATION PROJECTED 17 MILLION IN SAVINGS THIS YEAR. SURE. AND THERE'S BEEN, YOU KNOW, LESS THAN HALF A MILLION IN SAVINGS. WHEN DO YOU EXPECT THIS TO, YOU KNOW, ACTUALLY PAY OFF? MOST OF THE, UH, SHORTFALLS ARE VERY EXPLAINABLE. IT'S TAKEN A LITTLE LONGER. THIS MOVE TODAY, FOR INSTANCE, MAYBE I SHOULD HAVE DONE IT SIX MONTHS AGO. THIS IS PART OF THE COLLABORATION IN THE PATH THAT ERNST AND YOUNG SHOWED US. AND YOU KNOW, LET ME JUST ALSO TELL YOU FROM SOMEONE THAT'S BEEN IN THIS SERVICE FOR MANY, MANY YEARS, IT'S AN INEXACT SCIENCE AND, AND THE CRITICS THAT WANNA RAISE THOSE ISSUES AS YOU'RE DOING, WHAT'S THEIR PLAN? YEAH, ERN AND YOUNG WAS THE SMARTEST THING I'VE DONE. THEY SAID IN THAT STUDY, WHICH HADN'T BEEN REALLY REPORTED, [00:35:02] WE HAD MORE EMPLOYEES PER CAPITA THAN ANY OTHER MAJOR CITY IN AMERICA THAT WE HAD ADVISORS, SUPERVISORS, SUPERVISING THREE OR FEWER PEOPLE. SO I'LL STAND BY THAT. EARNEST YOUNG REPORT IS THE SMARTEST THING WE'VE DONE. IT IS STILL BEING IMPLEMENTED. AND YOU WILL SEE THE BENEFITS AS WE GO FORWARD, WHICH THIS IS TREMENDOUS. AND THIS CAME OUT OF THE SUGGESTIONS OF COLLABORATION AND UNITY. AND THERE'S MUCH MORE TO DO. DOES THIS BUDGET INCLUDE KIND OF MURKY FIGURES? LIKE THE 17 MILLION? I WOULD, I WOULDN'T CALL 'EM THAT. BUT DOES IT INCLUDE, YOU KNOW, SAVINGS THAT AREN'T COMPLETELY EXPLAINED RELATED TO ? I, I CAN'T READ YOUR MIND. I, I COULD PROBABLY, BUT I'M NOT GOING TO. THAT'S ALL SUSPECT AND CLICK BAIT. I'M GONNA STICK BY MY COMMENTS TODAY. YOU WATCH THE HEARING TOMORROW AFTERNOON, IT'S GONNA BE THOROUGH AND THEN YOU'LL SEE THE SUPPORT. BY THE WAY, AS I SAID WHEN I STARTED, THIS IS NOT JOHN WHITMORE'S PROPOSAL. I'M LEADING THE WAY. BUT I THINK OF SOME BOARD WHICH WAS COVERED UP. WE GOT CHAMBERS ACROSS THIS GREAT CITY, DIVERSE ACRES HOME CHAMBER, WEST SIDE LGBTQ PLUS CHAMBER. THIS IS A HOUSTONIAN PROPOSAL AND IT'S RESPONDING TO THE PEOPLE THAT COME BEFORE COUNCIL. AND WE ALL HAVE TOWN HALL MEETINGS. YOU KNOW, THOSE 18 HOUR DAYS. THEY'RE NOT JUST IN MY OFFICE, BUT WE LEAVE HERE AT SIX AND SEVEN TO GO TO WESTBURY OR KINGWOOD OR SUNNYSIDE. THIS IS, THIS IS A COLLABORATION PROPOSAL. AND YOU KNOW WHAT, WE LOVE YOUR QUESTIONS BECAUSE WE'RE GONNA SHOW YOU HOW IT WORKS. AND MY CRITICS, I CAN NAME A FEW. WHAT'S THEIR PLAN? BOB BULLOCK. I'M A PRODUCT OF PUBLIC SERVICE TOUGH LIEUTENANT GOVERNOR IN THE NINETIES. HE LOVED TEXAS. AND IF HE MADE A PROPOSAL AND YOU WEREN'T FOR IT, YOU BETTER HAVE YOUR OWN. YOU BETTER HAVE A PLAN IN YOUR POCKET. 'CAUSE HE'D CALL YOU SOME, SOME, SOME WORDS AND SAY, WHERE'S YOUR PLAN? AND I THINK THAT'S APPROPRIATE TODAY. WHERE'S YOUR PLAN? AND THEN A, A A SEPARATE QUESTION. UH, YOU AIN'T GOT ONE. . WE, UH, YOU SPOKE EARLIER ABOUT THE HOUSTON FIRE DEPARTMENTS OVER TIME. SURE. UM, LAST YEAR IN THEIR BUDGET PROPOSAL TO THE ADMINISTRATION, THEY ASKED FOR $73 MILLION IN OVERTIME ACCORDING TO INTERNAL DOCUMENTS. UM, THE ADMINISTRATION ULTIMATELY BUDGETED FOR 40, 43 0.5 MILLION. SURE. UM, WAS HOPING TO HEAR MORE ABOUT WHY THAT HAPPENED AND THEN THE APPROACH GOING INTO THIS NEXT YEAR, BECAUSE I TOLD YOU IT'S AN INEXACT SCIENCE. YOU LISTEN, YOU PROJECT, YOU GOT THE BEST ADVISORS IN THE WORLD. OUR BOND RATING REALLY LIKES WHAT WE'RE DOING. WE'RE ON A ROLL. AND WE'RE NOT GONNA BE NEGATIVE THIS MORNING BECAUSE WE'RE ALL PROUD TO BE HOUSTONIANS AND WE'RE DOING A TRANSFORMATIVE FINANCIAL PLAN TODAY. AND I'LL STAND BY AND BE PROUD AND IT MAKES ME WANT TO LEAVE HERE. NOT MAKES ME, I WILL LEAVE HERE TO WORK. MAYOR, HOW IS THE ADMINISTRATIVE FEE GOING TO HELP IMPROVE OPERATIONS AT SOLID WASTE MOVING FORWARD? IT'S GONNA MAKE A SIGNIFICANT DIFFERENCE BECAUSE WE'RE GOING TO HAVE THE RESOURCES. PUBLIC WORKS IS ALREADY HELPING SOLID WASTE. AND I DON'T KNOW IF YOU'VE HEARD ME, BUT IN THE NINETIES WHEN SOLID WASTE WAS A PART OF PUBLIC WORKS, IT WAS MUCH BETTER OPERATION. SO WE'RE GONNA GET 'EM THE RESOURCES THEY NEED. PUBLIC WORKS IS ONE OF OUR LARGEST DEPARTMENTS. SO THEY WILL COLLABORATE, LOOK AT THE BEST ROUTES, BETTER EQUIPMENT, AND YOU WILL NOTICE THE DIFFERENCE. WE STILL ARE GONNA BE CHALLENGED WITH THE ILLEGAL DUMPING. YOU HAVE TO DISTINGUISH. BUT HPD HAS FILED CHARGES ON PEOPLE THAT THEY CAN GET THEIR LICENSE PLATE THROUGH SOME VIDEOS. AND THANK GOODNESS FOR JOBY ALLEN AND CLEAN HOUSTON AND ALL THE PRIVATE, THE, THE CIVIC CLUBS, OPJ JONES OUT THERE AND FREDDY WOODS. I CAN, I CAN START NAMING ALL THE LOCAL PLAYERS. FRED STEVENS AND SUNNY, WE'RE GETTING A LOT OF HELP. GOVERNMENT CAN'T DO EVERYTHING. SO NOW WE'RE COLLABORATING WITH OUR NEIGHBORHOODS AND IT'S GOT EVERYBODY EXCITED. SO I THINK I'M ABOUT READY TO GO TO WORK. I CAN'T THANK THOSE OF YOU THAT ARE HERE. CHRIS BROWN, FARMER CONTROLLER, THAT BEEN AN ADVISOR SINCE DURING MY, MY CAMPAIGN MAYOR. UH, ONE LAST QUESTION. WELL, A FEW LAST QUESTIONS. UH, FIRST, COULD YOU SPEC, COULD YOU, UH, SHARE [00:40:01] IF THE 5% CHARGE TO DRAINAGE WATER SYSTEM, IS THAT ALSO TO THE SEWAGE SYSTEM FOR RIGHT AWAY? NO, MA'AM. THAT OKAY. NO MA'AM. UM, SECOND. YEAH. OH, OH YEAH, GO AHEAD. UM, YES, TO ANSWER YOUR QUESTION IS YES, SEWER, IT BECOMES ONE OF OUR UTILITIES ALONG WITH WATER AND WASTEWATER. SO THERE WILL BE A FEE, THE SEWAGE SYSTEM WILL PAY A UTILITY FEE TO THE CITY OF HOUSTON. THE, THE 5% FEE IS GONNA COME FROM THE COMBINED UTILITY SYSTEM. THE COMBINED UTILITY SYSTEM IS WATER AND SEWER AS ONE. SO ALL REVENUE COMES INTO THE SAME BUCKET. THE 5% COMES OFF OF THE TOTAL REVENUES. THANK YOU. THE GROSS REVENUE. UM, YEAH, CAN YOU JUST SHARE MORE ABOUT YOUR PLAN TO KEEP MEETING THE SEWAGE CONSENT DECREE AS WELL AS THE PROBLEMS WITH, UH, WATER MAINLINE BREAKS AND LEAD IN OUR PIPES. UM, AND JUST KEEPING IN MIND BOTH OUR WATER SYSTEMS AND SEWAGE, OUR AGING INFRASTRUCTURE. SO WITH THIS CUT TO THE COMBINED UTILITY FUND, WHAT'S THE PLAN TO ADDRESS ALL OF THAT? YEAH, I THINK, I THINK WHAT'S REALLY IMPORTANT TO RECOGNIZE, AND THE MAYOR TALKED ABOUT THIS, THIS ISN'T A CUT TO THE FUND FIRST AND FOREMOST. UH, THE FIVE PERCENT'S COMING FROM THE 1.2 BILLION IN FUND BALANCE THAT'S ALREADY THERE AS FAR AS OUR CONSENT DECREE OBLIGATIONS ARE CONCERNED. WE'RE, WE'RE STILL MOVING FORWARD WITH THE CONSENT DECREE. NOTHING HAS CHANGED THERE. THERE'S NO INTENTION TO, UH, NOT MEET ANY OF THOSE OBLIGATIONS. IF YOU LOOK AT WHAT WE'RE DOING NOW, THE CITY'S INVESTING MORE IN INFRASTRUCTURE THAN IT EVER HAS AT ANY ONE POINT IN ITS HISTORY. THAT'S TRUE. WHETHER YOU'RE LOOKING AT OUR ROADS, WHETHER YOU'RE LOOKING AT DRAINAGE PROJECTS, BUT ESPECIALLY AS YOU LOOK IN THE COMBINED UTILITY SYSTEM IN AND OF ITSELF, YOU KNOW, THE MAYORS TALKED ABOUT SOME OF THE IMPROVEMENTS WE'VE SEEN IN PUBLIC WORKS. YOU KNOW, A YEAR AGO AT THIS POINT, WE HAD 1900 ACTIVE WATER MAIN LEAKS ACROSS THE CITY. TODAY IT'S LESS THAN A HUNDRED THAT CONTINUES TO TREND IN THE RIGHT DIRECTION. WE'VE GOT AGGRESSIVE PLANS TO MAKE SURE THAT IT'S NOT JUST PUTTING BAND-AIDS ON THOSE PROBLEMS OVER AND OVER AND OVER AGAIN. BUT WE ACTUALLY SOLVE THOSE HOLISTIC ISSUES ACROSS THE BOARD. WE'RE HAVING DISCUSSIONS WITH OUR FRIENDS, THE COLLABORATION EFFORTS AND AUSTIN AND IN WASHINGTON ABOUT ARE THERE OTHER WAYS IN WHICH WE CAN PROVIDE ASSISTANCE, PARTICULARLY TO THE CONSENT DECREE THAT'S GONNA MAKE A DIFFERENCE. YOU KNOW, UH, MORE THAN TWO THIRDS OF SANITARY SEWER OVERFLOWS TODAY OCCUR IN PRIVATE LATERALS. THAT MEANS IT'S ACTUALLY OUTSIDE OF THE CITY'S PORTION OF THE SYSTEM. AND THAT MAKES IT DIFFICULT FOR THE CITY TO RESPOND TO THAT BECAUSE THERE'S RESTRICTIONS ON HOW WE SPEND THAT CAPITAL. THOSE ARE DISCUSSIONS THAT WE HAVE TO HAVE WITH OTHER AGENCIES TO MAKE SURE THAT WE CAN BE COLLABORATIVE. THE MAYOR'S, UH, COLLABORATIVE APPROACH HERE ON THIS BUDGET AND THE COMBINED PROPOSAL THAT EVERYONE'S SEEING TODAY ANTICIPATES ALL OF THOSE THINGS. IT ANTICIPATES AGGRESSIVE EXPANSION OF THE SYSTEM, AGGRESSIVE REPLACEMENT AND UPGRADES AND ALL OF THE INFRASTRUCTURE THAT'S NECESSARY. WE'RE NOT MOVING BACKWARDS. UH, AND THE BEST IS STILL YET TO COME. I THINK CAN YOU, CAN YOU JUST BREAK DOWN, SO YOU'RE SAYING IT'S NOT A CUT TO THE FUND, BUT THAT MONEY, WHAT IS IT BEING SPENT ON, RIGHT? LIKE IN THIS YEAR SAY, WHAT WAS THAT MONEY SPENT ON? YEAH, AND I THINK THAT'S, I THINK THAT'S THE POINT IS THAT IN, UH, AND I, I CREDIT COUNCIL MEMBER PECK, UH, WHO BRINGS THIS UP MOST YEARS. SHE SAYS, WHAT ARE WE DOING WITH THE FUND BALANCE HERE? AND THE EXPLANATION HAS ALWAYS BEEN, LOOK, THOSE FUNDS ARE ACCOUNTED FOR SOMETHING AT SOME POINT. BUT WHEN YOU START TO UNDERSTAND THE SIZE AND SCOPE OF OUR INFRASTRUCTURE PROJECTS AND THE PREVIOUS PROCESSES THAT THE CITY'S DONE, WE TEND TO APPROPRIATE THE ENTIRE AMOUNT OF A PROJECT. WHETHER IT TAKES 5, 10, 15, 20 YEARS TO ACCOMPLISH. AND THAT MEANS THAT MONEY GETS SOCKED AWAY AND SITS THERE FOR A LONG TIME. IT EARNS INTEREST, IT DOESN'T DO ANYTHING. THERE'S OPPORTUNITIES FOR US. AND AS WE'VE PROJECTED AND MODELED THAT FUND BALANCE TO RECOGNIZE IT'S GONNA CONTINUE TO GROW, WE ARE NOT GOING TO TAKE A CUT TO THOSE INFRASTRUCTURE SERVICES OR ANYTHING THAT WE'RE DOING. THANK YOU. ALRIGHT. UH, ONE LAST QUESTION. DIFFERENT TOPIC. UH, YOU, YOU FRAME THE CITY LOSING A THOUSAND EMPLOYEES AS EFFICIENT, YOU'RE VOLUNTARY RE RETIREMENT PROGRAM. THAT WAS AN INCENTIVE PLAN. WELL, THE INCENTIVE PLAN, WE DIDN'T LOSE THEM. THEY VOLUNTEERED. WELL, IF YOU LOOK AND WERE EXCITED TO BE HERE, SORRY. YOU SHARED THAT THE CITY NOW HAS LESS EMPLOYEES THAN IT FORMALLY DID. IS THAT ACCURATE? WELL, I'D HAVE TO PUT A PENCIL TO IT BECAUSE SOME OF THOSE EMPLOYEES WITH, WITH EXPERTISE HAVE COME BACK AND HELPED THEIR DEPARTMENTS. AND THEN ALSO WE'VE GOT A HIRING FREEZE. WE'RE DOWNSIZING CITY GOVERNMENT DUE TO ITS OUR EFFICIENCIES. YEAH. SO MY QUESTION IS, UH, YOU'RE FRAMING THAT AS EFFICIENCY, BUT Y'ALL HAVE ALL HEARD MANY, UH, CITY EMPLOYEES COMING TO CITY COUNCIL TO TESTIFY THAT THEY'RE UNHAPPY WITH THEIR WORK CONDITIONS, FEELING OVERWORKED AND LIKE THEY DON'T HAVE PROPER RESOURCES. CAN YOU SHARE YOUR PLAN TO ADDRESS THAT? WELL, THE BEST WAY TO DO THAT IS YOU OUGHT TO TALK TO THOSE EMPLOYEES, HOPE THEIR UNION ENDORSED ME FOR REELECTION THE OTHER DAY. AND I DON'T WANNA GET [00:45:01] POLITICAL, BUT YOU SET IT UP. I MEAN, THE PEOPLE THAT YOU'RE SPEAKING FOR ARE SUPPORTERS OF OUR PROGRESS IN WHAT WE'RE DOING FOR CITY EMPLOYEES. SO THANK YOU A LOT. * This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting.