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GOOD MORNING, WE HAVE A QUORUM.
TODAY IS TUESDAY, AUGUST 8TH, 2023.
THE TIME'S 9:54 AM AND I, I CALL THIS MEETING OF THE DALLAS STATE COUNCIL TO ORDER.
WE'RE GONNA HAVE OUR INVOCATION THIS MORNING,
[Invocation and Pledge of Allegiance]
GIVEN BY CHAPLAIN RAYFORD BUTLER.HE WORKS WITH THE DALLAS POLICE DEPARTMENT AND HE'S A GOOD MAN.
THANK YOU SO MUCH FOR BEING HERE THIS MORNING.
I'M GONNA TURN IT OVER TO YOU NOW.
UH, FIRST I, FIRST THING I'D LIKE TO SAY IS GOOD MORNING TO EVERYBODY, AND YOU ALL KNOW HOW CHIEF GARCIA SAY GOOD MORNING TWICE.
SO WE EVERYONE TO SAY GOOD MORNING AND THANK GOD FOR THE OPPORTUNITY, FATHER IN JESUS' NAMES, THANK YOU SO MUCH FOR INVITING ME INTO YOUR BUSINESS TODAY, UH, BY BRINGING US INTO LIFE.
AND WE COME NOW TO ONLY DO THY WILL, THOUGH LORD, LET THY WILL BE DONE.
UH, HELP US TO DO THAT, WHICH IS RIGHT.
HELP US TO KNOW WHAT WISDOM IS AND PRACTICE WISDOM.
EVERY DECISION THAT WE ARE GOING TO MAKE.
LET OUR EFFORTS BE DRIVEN BY YOUR GRACE AND MERCY, AND WE FOREVER.
THIS TIME WE'RE GONNA HAVE OUR PLEDGE OF ALLEGIANCE TO THE TEXAS FLAG, UNITED STATES FLAG.
FIRST, IF YOU PLEASE RISE, I PLEDGE ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA AND TO THE REPUBLIC FOR WHICH IT STANDS, ONE NATION UNDER GOD, INDIVISIBLE, WITH LIBERTY AND JUSTICE FOR ALL, HONOR THE TEXAS FLAG.
I PLEDGE ALLEGIANCE TO THE TEXAS ONE STATE UNDER GOD, ONE AND INDIVISIBLE.
DO HAVE ANY ANNOUNCEMENTS THIS MORNING, SO WE'LL MOVE RIGHT ON
[Open Microphone Speakers]
TO OUR OPEN MICROPHONE SPEAKERS, MADAM SECRETARY.THANK YOU MR. MAYOR, AND GOOD MORNING.
YOU HAVE FIVE REGISTERED SPEAKERS FOR THIS WORKSHOP.
I'LL RECITE THE SPEAKER GUIDELINES.
SPEAKERS MUST OBSERVE THE SAME RULES OF PROPRIETY DECORUM AND GOOD CONDUCT APPLICABLE TO MEMBERS OF THE CITY COUNCIL, ANY SPEAKER MAKING PERSONAL AND PERTINENT PROFANE OR SLANDEROUS REMARKS OR WHO BECOMES BOISTEROUS.
WHILE ADDRESSING CITY COUNCIL WILL BE REMOVED FROM THE ROOM.
INDIVIDUALS BE GIVEN THREE MINUTES TO SPEAK.
YOU'LL NOTICE THE TIME, YOUR TIME ON THE MONITOR AT THE PODIUM.
WHEN YOUR TIME IS UP, PLEASE STOP.
ALSO, SPEAKERS DURING YOUR PUBLIC COMMENTS, YOU ARE NOT ALLOWED TO REFER TO A CITY COUNCIL MEMBER BY NAME.
ADDRESS YOUR COMMENTS TO MAYOR JOHNSON, ONLY YOUR FIRST SPEAKER.
MY NAME IS MOLLY ROOK AND I'M HERE TODAY BECAUSE I'M CONCERNED THAT THE PROPOSED BUDGET APPEARS TO MAKE DEEP CUTS, A $66.6 MILLION REDUCTION TO FUNDING FOR THE CRITICAL ENVIRONMENTAL AND SUSTAINABILITY NEEDS.
AT PAGE NINE OF THE SLIDE PRESENTATION TODAY, SEE THE SECOND BAR GRAPH THERE SHOWING A REDUCTION FOR ENVIRONMENT AND SUSTAINABILITY FROM $628 MILLION TO $561.4 MILLION AND ALMOST 11% DI DECREASE IN ALL OPERATING CAPITAL FUNDS AND ADDITIONAL SOURCES.
I SERVED ON THE STAKEHOLDER ADVISORY COMMITTEE AS A REPRESENTATIVE OF THE DALLAS SIERRA CLUB IN 3 3 50 DALLAS, HELPING TO DEVELOP THE COMPREHENSIVE ENVIRONMENTAL AND CLIMATE ACTION PLAN, THE CCAP WITH PARTICIPATION OF BUSINESSES, THE ENVIRONMENTAL COMMUNITY AND PUBLIC INPUT TO HELP ENSURE ALL VOICES WERE HEARD.
WE CAN'T AFFORD TO FALL SHORT WITH SO MUCH AT STAKE, INCLUDING PEOPLE'S LIVES, ESPECIALLY THOSE OF THE MOST VULNERABLE.
AND WITH THE CLIMATE CRISIS ACCELERATING, WE CAN'T SLOW DOWN WITH OUR ENVIRONMENTAL AND CLIMATE ACTIONS.
SO THE BUDGET, UH, MUST FOR THE BUDGET TO IMPLEMENT THE CCAP, UH, THE FUNDS MUST NOT BE REDUCED AND CERTAINLY NOT A 18.2% REDUCTION IN THE OFFICE OF ENVIRONMENTAL QUALITY AND SUSTAINABILITY.
GENERAL FUND EXPENSES, AND YOU CAN SEE THIS ON PAGE 96 OF THE SLIDE PRESENTATION.
THIS IS A DEEPER CUT THAN ANY OTHER DEPARTMENTS SHOWN ON PAGES 94 THROUGH 97, EXCEPT FOR THE OFFICE OF HISTORIC PRESERVATION FOR WHICH ALL THE EXPENSES WERE COMPLETELY CUT TO ACHIEVE THE CRITICAL AND CCAP GOALS WITH NO LESS THAN A 43% REDUCTION IN GREENHOUSE GAS EMISSIONS BY 2030.
AND WITH A 100% REDUCTION BY 2050, WE NEED MORE FUNDING FOR THE CCAP, NOT LESS.
UM, SO I HOPE THAT SOMEONE CAN EXPLAIN WHY O E Q S FUNDS ARE REDUCED SO MUCH WHILE OTHER DEPARTMENTS GOT INCREASES.
UH, ARE THERE ENVIRONMENTAL AND SUSTAINABILITY REDUCTIONS IN ALL DEPARTMENTS FOR
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WHICH, WHICH HAVE ROLES IN C A P EFFORTS? UH, ARE THERE REDUCTIONS IN FUNDS AND GRANTS, INCLUDING FROM ARPA, THE AMERICAN RESCUE PLAN ACT, AND OTHER SOURCES? DALLAS COULD MISS OUT ON LARGE FUNDING OP OPPORTUNITIES CURRENTLY AVAILABLE THROUGH THE FEDERAL INFRASTRUCTURE AND JOBS BILL, AS WELL AS THE INFL INFLATION REDUCTION ACT FOR ENERGY EFFICIENCY, SOLAR ELECTRIC VEHICLES AND CHARGING INFRASTRUCTURE AND MORE, IF MONEY IS NOT INCLUDED IN THE ENVIRONMENT AND SUSTAINABILITY BUDGETS TO PAY SOME PERCENTAGE SHARE OF THE COSTS, THERE ARE ALSO TIME SENSITIVE FUNDS, FUNDS FROM THE E P A FOR ENVIRONMENTAL JUSTICE AND FROM T C E Q.UH, SO JUST, I WANNA MAKE SURE THAT, UH, THE FUNDS ARE REALLY THERE SOMEWHERE.
IF THEY'RE NOT, THEY NEED TO BE THERE.
THIS IS TOO IMPORTANT FOR US TO MISS.
SO I LOOK FORWARD TO HEARING THE ANSWERS TO THESE QUESTIONS AND HOW WE GET THE FUNDING WE NEED.
THE DALLAS LA CA CITY COUNCIL PASSED THE DALLAS CLIMATE PLAN WITH THE INTENT OF REDUCING GREENHOUSE GASES.
WE WILL NOT ACHIEVE OUR OBJECTIVE OF CLEAN AIR WITH A, WITH A REDUCTION FOR THE ENVIRONMENTAL AND SUSTAINABLE ABILITY BUDGET FROM THE 628 MILLION TO 561000000.4 MILLION.
I WILL REPEAT FROM MOLLY, A 66.6 MILLION REDUCTION OR ALMOST 11% DECREASE IN A WHOLE OPERATING CAPITAL FUNDS AND ADDITIONAL SOURCES.
IN ADDITION, THE OFFICE OF ENVIRONMENTAL QUALITY IS TO HAVE AN 18.2% REDUCTION IN OUR, THEIR GENERAL FUND EXPENSES, WHICH IS EXPONENTIALLY HIGHER THAN ANY OTHER DEPARTMENT EXCEPT FOR THE COMPLETE DELETION OF ALL THE EXPENSES OF THE OFFICE OF THE HISTORIC PRESERVATION.
IT'S SO CHARMING WITH MILLIONS OF VISITORS VISITING THAT CITY AND THEY PRESERVE THEIR, THEIR BUILDINGS.
IT'S ONE OF THE REASONS WHY PEOPLE GO THERE.
HOWEVER, THIS CITY IS PROPOSING TO DELETE EXPENSES OF THE OFFICE OF HISTORIC PRESERVATION.
THIS IS ILLOGICAL AND NOT GOOD FOR THE CITY.
IN ADDITION, THE PROPOSED BUDGET CUT CCAP OPERATING BUDGET, WHICH IS OF GREAT CONCERN BECAUSE DALLAS NEVER HAS HAD CLEAN AIR.
AND THIS PLAN IS TO ACHIEVE IT FULLY FUNDING C A MEANS SUCCESS IN ACHIEVING CLEAN AIR FOR EVERYONE.
MY FIRST ASTHMA TAG CAME IN EARLY 2000 WHEN WE HAD OUR FIRST RED ALERT DAY.
I LIVED ON MEDICINE FOR MANY YEARS, AND I AM FORTUNATE THAT I'M ABLE TO HAVE GOTTEN THE MEDICATION.
THERE ARE MANY WHO DO NOT, ESPECIALLY CHILDREN.
THE LUNG ASSOCIATION'S 2022 REPORT FURTHER STATES THAT THE LEVELS OF OZONE AND PRACTICAL POLLUTION SEEN IN THE AREA CAN HARM THE HEALTH OF ALL OF OUR RESIDENTS, BUT PARTICULARLY AT RISK ARE CHILDREN, OLDER ADULTS, PREGNANT PEOPLE, AND THOSE LIVING WITH CHRONIC DISEASE, BOTH OZONE AND PARTICLE POLLUTION, WHICH REALLY PARTICLE POLLUTION IS UNTO THEIR PLAN, CAN CAUSE PREMATURE DEATH AND OTHER SERIOUS HEALTH EFFECTS SUCH AS ASTHMA ATTACKS, CARDIOVASCULAR DAMAGE, AND DEVELOPMENTAL AND REPRODUCTIVE HARM AS WELL.
PARTICLE POLLUTION CAN ALSO CAUSE LUNG CANCER REPORTS.
I'M PARTICULARLY AWARE OF THIS SITUATION 'CAUSE MY OWN SON WAS DIAGNOSED BY M THAT'S YOUR ANDERSON'S AS HAVING LUNG.
MY NAME IS DAVID ELLISON AND I'M PRESIDENT OF THE DALLAS POLICE RETIRED OFFICERS ASSOCIATION.
I RETIRED FROM THE DEPARTMENT IN 2010 AS A DEPUTY CHIEF OF POLICE AFTER SERVING THE CITY FOR OVER 38 YEARS.
I'M HERE TODAY TO ASK YOU TO PLEASE ADDRESS THE FUNDING SHORTAGE OF THE DALLAS POLICE AND FIRE PENSION SYSTEM.
THERE ARE APPROXIMATELY 5,000 RETIREES AND THEIR BENEFICIARIES WHO ARE DEPENDENT UPON THIS PLAN UNLESS THEY WORKED ELSEWHERE.
IN ADDITION TO WORKING FOR THE CITY, THEY DO NOT QUALIFY FOR SOCIAL SECURITY.
IN 2017, IN AN EFFORT AT PENSION REFORM, THE CITY AND THE PENSION SYSTEM AND THE STATE LEGISLATURE
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MADE SEVERAL CHANGES TO OUR PLAN.ONE OF THOSE WAS TO CHANGE OUR 4% ANNUAL ADJUSTMENT, WHICH WAS CHANGED TO AN AD HOC COLA THAT CAN ONLY BE PAID ONCE THE PLAN REACHES 70% FUNDING.
ACCORDING TO OUR ACTUARY, WE WILL NOT REACH THAT MILESTONE FOR ANOTHER 50 YEARS IN 2022.
IN 2023, SOCIAL SECURITY AWARDED RETIREES A 5.9 AND 8.7% RESPECTIVELY, THOSE SAME YEARS.
THE CITY'S EMPLOYEE RETIREMENT FUND AWARDED THEIR RETIREES 5% COAL EACH YEAR.
BUT POLICE AND FIRE HAVE NOT RECEIVED A COST OF LIVING ADJUSTMENTS SINCE 2016.
OUR PENSIONS ARE QUICKLY ERODING AWAY.
I DO NOT SEE ANYTHING IN THIS YEAR'S BUDGET EARMARKED FOR THE DALLAS POLICE AND FIRE PENSION SYSTEM.
THE PLAN'S FUNDING LEVEL IS CURRENTLY AROUND 40%, AND IT'S ESTIMATED IT'LL TAKE APPROXIMATELY $3 BILLION TO FULLY FUND.
AND THAT IS WHY THAT I ASK THAT WE NOT MOVE FORWARD WITH ANY TYPE OF GENERAL OBLIGATION BOND UNTIL WE HAVE A PLAN IN PLACE TO FIX THE PENSION SYSTEM.
THE DALLAS POLICE AND FIRE PENSION IS ALREADY WORKING WITH THE TEXAS PENSION REVIEW BOARD ON SELECTING AN INDEPENDENT ACTUARY TO PERFORM AN AUDIT OF THE PLAN.
ONCE FINISHED, THAT AUDIT WILL BE SHARED WITH THE CITY AND THE LEGISLATURE ALONG WITH ANY PLANS FOR IMPROVING THE FUNDING.
THE END GOAL WILL BE TO HAVE THE PLAN 100% FUNDED WITHIN 25 YEARS.
KEEP IN MIND, OUR ACTUARY HAS ALREADY SAID IT'LL TAKE US 50 JUST TO GET TO 70 YEARS, 70%.
IF SOMETHING IS NOT DONE NOW TO GET AHEAD OF THIS SITUATION, IT COULD BECOME A PUBLIC, UH, NEWS.
IT IT COULD BECOME A VERY PUBLIC, AS THE NEWS MEDIA AND RESIDENTS START ASKING QUESTIONS ABOUT WHY WE DIDN'T SEE THIS COMING, IF ALL OF OUR BONDING AND TAXING CAPABILITY IS DESIGNATED TO OTHER PROJECTS BEFORE ADDRESSING THE NEEDS OF THE PENSION, WE COULD SEE IT FAIL.
AND THIS COULD BE A NATIONAL NEWS STORY THAT WOULD HAVE DEVASTATING CONSEQUENCES FOR ALL.
IT COULD HAVE A NEGATIVE EFFECT ON THE CITY'S BOND RATING.
IT COULD CAUSE NEW BUSINESSES TO LOOK ELSEWHERE AND WOULD CERTAINLY CAUSE POLICE AND FIRE CANDIDATES TO GO ELSEWHERE FOR EMPLOYMENT.
I KNOW THERE ARE LOTS OF IDEAS TO MAKE OUR GREAT CITY EVEN MORE GRAND, BUT UNLESS WE CAN PROVIDE SAFETY AND SECURITY, WILL THERE BE ANYONE WILLING TO COME? PLEASE, BEFORE WE SPEND ALL OF OUR AVAILABLE, YOUR REVENUE, CAN WE FIX THE PENSION SYSTEM? THANK YOU.
GOOD MORNING COUNCIL AND WELCOME TO OUR NEW COUNCIL MEMBERS.
WE HAVE MEMBERS IN THE DALLAS AREA AND TOGETHER OUR ORGANIZATION, ALONG WITH MANY OTHERS LIKE SIERRA CLUB, THREE FIFTY.ORG, CLIMATE REALITY, ET CETERA, GOT THE C A P PASS SEVERAL YEARS AGO.
TOGETHER ALL OUR ORGANIZATIONS REPRESENT MORE THAN 10,000 DALLAS RESIDENTS.
I AM HERE TODAY AS WELL TO SPEAK ABOUT THE BUDGET REGARDING IN THE ENVIRONMENT AND SUSTAINABILITY.
AGAIN, DURING THIS PRESENTATION TODAY, I WANNA CALL, CALL YOUR ATTENTION TO PAGE NINE AND PAGE 96.
ON PAGE 90 ON PAGE NINE, YOU'LL SEE A 66.6 REDUCTION IN ENVIRONMENT AND SUSTAINABILITY ACROSS ALL FUNDING.
ON PAGE NINE, UH, 96 RATHER, YOU'RE GONNA SEE 11% DECREASE.
EXCUSE ME, AN 18.2% DECREASE IN THE FUNDING FOR O E Q S, THOUGH WHEN I SKIMMED THE BUDGET IN THE MORE DETAILED 780 PLUS PAGE BUDGET, THANK GOODNESS WE DIDN'T CUT THE NUMBER OF EMPLOYEES IN THE OFFICE OF ENVIRONMENT AND SUSTAINABILITY.
ARE WE EXPECTING THE SAME AMOUNT OF EMPLOYEES TO DO MORE TO GET US TO OUR CCAP GOALS WITH LESS MONEY? THERE ARE FUNDS AVAILABLE FROM THE E P A FOR ENVIRONMENTAL JUSTICE PROJECTS.
THERE ARE FUNDS AVAILABLE RIGHT NOW THAT ARE GONNA GO AWAY FROM THE BIDEN ADMINISTRATION FOR EV VEHICLES AND EV INFRASTRUCTURE FOR PUBLIC FACING EV INFRASTRUCTURE.
I HEAR THE FIRE CHIEF MIGHT LIKE A PILOT FIRE TRUCK THAT'S ELECTRIC.
THERE IS SO MUCH FUNDING THAT'S NOT EVEN APPLIED FOR THAT WE COULD GET FROM COG IN LIGHT OF THE FEDERAL FUNDING THAT'S AVAILABLE.
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ONCE THAT FUNDING GOES AWAY, IT'S GONE.THERE'S LESS THAN SEVEN YEARS LEFT TO MEET OUR FIRST CCAP GOAL, WHICH IS A 43% REDUCTION BY 2030.
WE DON'T HAVE A LOT OF TIME TO TAKE, TO MISS AND NOT TAKE ADVANTAGE TO FUNDS AVAILABLE TO US.
WE NEED MORE FUNDING FOR THE ENVIRONMENT THAT WILL HELP SOME OF OUR MOST VULNERABLE COMMUNITIES, AND WE ALSO NEED IT TO MEET OUR CLIMATE GOALS.
I THINK EVERYONE IS SEEING WHAT THIS SUMMER HAS BEEN LIKE WITH WILDFIRES AND FLOODS WORLDWIDE.
LET'S DO MORE, MORE FOR THE ENVIRONMENT.
THAT'S YOUR TIME AND NOT LESS.
AND I LOOK FORWARD TO BUDGET'S, EXPLANATION ON WHY THESE CUTS WERE MADE.
I'M A RETIRED POLICE OFFICER IN DALLAS POLICE DEPARTMENT.
LONG TIME AGO I LEFT, WENT TO WORK IN THE FINANCIAL SERVICES INDUSTRY OF OWNED MY OWN BROKER DEALER.
SO THESE, AND I, AND I SERVED 12 YEARS ON THE, ON OUR PENSION FUND, 10 AS ITS CHAIRMAN PRIOR TO ALL THIS PROBLEMS THAT CAME UP, UH, ABOUT THREE YEARS AGO.
RIGHT NOW WE ARE SHORT ABOUT 600 PLUS OFFICERS IN DALLAS.
AND I'M NOT SURE HOW MANY, UH, IN THE FIRE DEPARTMENT, BUT THAT'S A TREMENDOUS NUMBER.
AND IT LOST BECAUSE THE PENSION GOT, IT LITERALLY GOT ATTACKED AND CAUSED A RUN ON THE BANK.
AND THAT, THAT BEING OVER WITH OUR PENSION SHOULD BE BACKED UP.
I THINK WITH PENSION OBLIGATION BONDS, THEY'RE AVAILABLE IN THE STATE OF TEXAS.
I HELPED PASS THE LAW YEARS AGO SO THAT WE COULD DO THAT IF IT EVER BECAME NECESSARY.
AND IF WE USE ALL OUR BOND ABILITY THAT THE CITY HAS AND IT'S USED UP, THEN WE WON'T BE ABLE TO TO APPLY THAT.
AND THAT NEEDS TO BE DONE RIGHT AWAY IN TWO, IN TWO YEARS FROM NOW, 2025.
IF YOU FIND OUT WHEN YOU CHECK WITH THE ADMINISTRATION OF PENSION FUND, IT'S COMING.
IT WASN'T FIXED AT THE LEGISLATURE IN 19 OR IN 2018.
THAT WAS JUST A STOP GAP, SORT OF A BRIDGE AND IT'S GONNA BE COMING DUE.
SO WE NEED TO, WE NEED TO CHANGE THAT.
AND THE REASON WE NEED THE PENSION OBLIGATION BONDS, IT'S ONLY FAIR AS PENSION OBLIGATION.
BONDS HAVE BEEN APPROVED FOR THE OTHER PENSION SYSTEM IN THE CITY, AND THEY HAVE NOT FOR OURS.
AND WE HAVE A COLA THE POLICE AND FIRE DO, AND IT WAS A 4% COLA.
THAT SOUNDS LIKE A WHOLE LOT EXCEPT THE STORY WAS, WAS A OUTRIGHT LIE.
IT WAS A, IT'S A SIMPLE IN INTEREST RATE.
AND THAT'S WHAT YOU GET A RAISE EVERY YEAR AFTER THAT.
NOT, NOT A COMPOUNDING LIKE SOCIAL SECURITY IS COMPOUNDING.
I'M NOT SURE ABOUT THE OTHER PENSION SYSTEM, WHETHER IT IS OR NOT, BUT THEY JUST HAD A LAST YEAR AND THEY'VE BEEN HELPED WITH PENSION OBLIGATION BONDS, WHICH WE NEED TO BE USED TO HELP OUT THE DALLAS POLICE AND FIRE PENSION SYSTEM.
AND THE MY NEXT POINT IS I JUST WANT TO KNOW WHEN WE CAN EXPECT THAT THE PENSION ISSUES WILL BE ADDRESSED BECAUSE THEY HAVE TO BE ADDRESSED OR YOU'RE GONNA LOSE A LOT MORE OFFICERS IN THE FIREMAN RIGHT NOW.
THIS CONCLUDES YOUR OPEN MICROPHONE SPEAKERS FOR THIS MEETING.
UM, BEFORE WE MOVE ON TO OUR BRIEFING AGENDA, MR. CITY MANAGER, WE'RE GONNA TAKE A TWO MINUTE RECESS SO WE DON'T LOSE OUR, OUR TENUOUS QUORUM.
FOR EVERYONE WHO NEEDS TO GO TO THE RESTROOM OR ANYTHING ELSE, NOW'S THE TIME BECAUSE ONCE WE GET STARTED WITH THE STATE MANAGER'S PRESENTATION, WE CAN'T LOSE ANYONE.
OKAY? YOU UNDERSTAND? WE REALLY CAN'T LOSE ANYONE OR THE MEETING STOPS.
OKAY, WE'RE BACK FROM OUR RECESS.
I'M TOLD WE HAVE OUR QUORUM REESTABLISHED AND UH, I'LL TURN IT OVER TO MR.
[A. 23-1848 Budget Workshop: City Manager’s Recommended Biennial Budget for FY 2023-24 and FY 2024-25]
CITY MANAGER NOW.MEMBERS OF THE CITY COUNCIL WHO ARE PRESENT.
I AM PLEASED TO HAVE THE OPPORTUNITY, UH, TO SHARE WITH YOU MY RECOMMENDATION FOR THE FISCAL YEAR 24
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AND FISCAL YEAR 25 BIENNIAL BUDGET.AS YOU KNOW, OUR BUDGET SERVES AS A POLICY DOCUMENT, A FINANCIAL PLAN AND OPERATIONAL GUIDE.
IN SUM, A BUDGET ALLOWS US TO EXPRESS OUR PRIORITIES WITH HOW WE ALLOCATE THE PUBLIC'S RESOURCES THAT ARE ENTRUSTED TO US.
THIS MORNING, WE WILL DISCUSS MY RECOMMENDATIONS FOR HOW RESOURCES ARE ALLOCATED TO ADDRESS THE PRIORITIES THAT I'VE HEARD FROM THE RESIDENTS, YOU AND OUR OTHER ELECTED LEADERSHIP.
THE BIENNIAL BUDGET IS BALANCED FOR EACH OF THE NEXT TWO YEARS.
THE FISCAL YEAR 24 BUDGET TOTALS $4.63 BILLION, INCLUDING THE GENERAL FUND ENTERPRISE FUNDS AND CAPITAL FUNDS.
THE GENERAL FUND PORTION OF THE BUDGET IS $1.8 BILLION, AND I'M RECOMMENDING A TAX RATE REDUCTION OF 0.65 CENTS PER 100 IN VALUATION.
WITH THIS BUDGET, WE CONTINUE TO PUT SERVICE FIRST TO MEET THE NEEDS OF THE COMMUNITY WITH EMPATHY, ETHICS, EXCELLENCE, AND EQUITY, AND ADDED IN FISCAL YEAR 23 ENGAGEMENT, OUR CHIEF FINANCIAL OFFICER AND BUDGET AND MANAGEMENT SERVICES DIRECTOR WILL WALK US THROUGH THE BUDGET PROPOSAL TODAY.
I WILL NOW TURN THINGS OVER TO JACK IRELAND, OUR CHIEF FINANCIAL OFFICER TO BEGIN THE PRESENTATION.
JACK, IS YOUR MIC? I CAN'T HEAR YOU, JACK.
UH, AGAIN, UH, THANK YOU MR. BRUNICK.
AND AS HE MENTIONED, MY NAME IS JACK IRELAND, SERVING AS CHIEF FINANCIAL OFFICER FOR THE CITY.
UH, TODAY WE ARE HERE TO PRESENT THE MANAGER'S RECOMMENDATION FOR FISCAL YEAR 24 AND FISCAL YEAR 25.
I'M JOINED WITH, UH, JEANETTE WHEDON, DIRECTOR IN BUDGET MANAGEMENT SERVICES, AS WELL AS IVAN GULL AND CECILIA CHU FROM, UH, BUDGET MANAGEMENT SERVICES AS WELL.
ON SLIDE TWO, WE JUST PROVIDED AN OUTLINE OF THE PRESENTATION.
THERE'S 91 SLIDES THAT WE'LL TRY TO GO THROUGH FAIRLY QUICKLY BECAUSE OF THE LENGTH.
I'LL GO THROUGH THE FIRST HALF AND THEN, UH, JEANETTE WILL COVER THE SECOND HALF OF THE PRESENTATION.
I DO WANNA POINT OUT THE PICTURE THAT'S INCLUDED IN THE, UH, BRIEFING AS WELL AS WHAT IS ON THE FRONT COVER OF THE BUDGET BOOK.
WE HAD A COMPETITION OF CITY EMPLOYEES AND, UH, THAT WAS SELECTED DON RAINS JR.
FROM PLANNING AND URBAN DESIGNS.
UH, PHOTO OF THE TRINITY FLOODPLAIN, UH, WAS THE PICTURE THAT WE SELECTED TO INCLUDE, UH, IN JUST AN EFFORT TO ENGAGE WITH EMPLOYEES IN A DIFFERENT WAY.
SO GOING INTO THE BUDGET ON SLIDE THREE, JUST AS A HIGH LEVEL OVERVIEW, THE FISCAL YEAR 24 PROPOSED BUDGET IS BALANCED AND TOTALS $4.6 BILLION.
THE FISCAL YEAR 25 BUDGET IS A PLANNED BUDGET THAT YOU WILL NOT ADOPT THIS YEAR, BUT YOU WILL ADOPT NEXT YEAR.
IT IS ALSO BALANCED AT $4.57 BILLION.
WE WILL SPEND MOST OF OUR TIME TALKING ABOUT THE GENERAL FUND THIS YEAR.
THE GENERAL FUND IS PROPOSED TO BE $1.8 BILLION, WHICH IS AN INCREASE OF $137.8 MILLION OR 8.1% MORE THAN THE BUDGET THAT YOU ADOPTED LAST SEPTEMBER.
AND THEN FINALLY ON SLIDE THREE, UH, AS MR. BROAD MENTIONED, A RECOMMENDATION TO REDUCE THE TAX RATE IS INCLUDED IN THE BUDGET OF 0.65 CENTS, MAKING THIS THE EIGHTH CONSECUTIVE YEAR FOR REDUCTION IF ADOPTED.
ON SLIDE FOUR, UH, JUST AN OVERVIEW OF THE BUDGET, UH, $4.6 BILLION TOTAL.
AND HERE WE'VE BROKEN IT DOWN BETWEEN THE OPERATING BUDGETS ON THE LEFT HAND SIDE OF THE PAGE AND THE CAPITAL BUDGET ON THE RIGHT HAND SIDE OF THE PAGE.
THE CAPITAL BUDGET IS, UH, THE PART OF THE BUDGET THAT WE FUND OUR LONG-TERM CAPITAL IMPROVEMENTS.
AND THE LEFT HAND SIDE OF THE PAGE OPERATING BUDGET, WHERE WE FUND OUR DAY-TO-DAY OPERATION AND MAINTENANCE, INCLUDING THE GENERAL FUND, THE SEVEN ENTERPRISE FUNDS, GENERAL OBLIGATION DEBT, AND ADDITIONAL RESOURCES.
SO THIS IS JUST ONE WAY TO LOOK AT IT.
I HAVE NOTED AT THE BOTTOM THAT WE HAVE $268 MILLION OF INTERNAL SERVICE FUNDS THAT ARE EMBEDDED WITHIN THE DEPARTMENTS.
AND WHEN IT COMES TIME TO APPROVE THE BUDGET, YOU'LL APPROVE THE BUDGET AS WELL AS THE TRANSFER OF THOSE INTERNAL SERVICE FUNDS.
SO WE JUST WANTED TO SHOW THAT A LITTLE BIT DIFFERENTLY THIS YEAR, UH, AS WE MOVE FORWARD TO ALLEVIATE SOME CONFUSION.
ON SLIDE FIVE, UH, AGAIN, THE BUDGET OVERVIEW.
YOU SEE THE COMPARISON OF FISCAL YEAR 20 THREE'S ADOPTED BUDGET, THE AMENDED BUDGET, BECAUSE IN MAY
[00:25:01]
OF THIS YEAR, UH, WE CAME FORWARD TO COUNCIL AND ASKED FOR AMENDMENTS.SO YOU SEE THAT IN THE, UH, SECOND SET OF NUMBERS.
THEN THE 24 PROPOSED, THE 25 PLANNED.
UH, FOR THE GENERAL FUND, AGAIN, GOING FROM $1.71 BILLION UP TO $1.84 BILLION, THAT'S $137 MILLION INCREASE OR 8%.
THE TOTAL BUDGET, ALL FUNDS IS UP 2.7%, BUT THAT IS THE NET OF INCREASES AS WELL AS THE GENERAL PURPOSE.
CAPITAL BUDGET HAS A DECREASE YEAR OVER YEAR, AND THAT IS PRIMARILY BECAUSE IN FISCAL YEAR 23, IT WAS THE LAST YEAR OF OUR APPROPRIATIONS FOR THE 2017 BOND PROGRAM, WE DO NOT HAVE ADDITIONAL APPROPRIATIONS FOR THE NEXT BOND PROGRAM UNTIL THAT PASSES, UH, THROUGH AN ELECTION.
SO THERE IS A DIP HERE UNTIL, UH, WE ADD APPROPRIATIONS FROM AN UPCOMING BOND PROGRAM.
UH, SO JUST THE TOTAL HERE, AGAIN, $4.6 BILLION, UH, FOR THE UPCOMING YEAR.
WHERE DOES THE MONEY COME FROM TO PAY FOR ALL OF THOSE EXPENSES? WELL, IT COMES FROM A LOT OF DIFFERENT PLACES.
THE GENERAL FUND REVENUES COME FROM PROPERTY TAX, SALES TAX, FRANCHISE CHARGES FOR SERVICES, FINES, AND OTHER SOURCES.
ENTERPRISE FUNDS OPERATE AS A BUSINESS AND THEIR REVENUE COMES FROM CHARGING THEIR CUSTOMERS FOR THE SERVICES THEY PROVIDE, SUCH AS WATER AND SANITATION AS EXAMPLES.
DEBT SERVICE REVENUES ALSO COME FROM PROPERTY TAX, WHICH IS WHERE WE PAY FOR OUR GENERAL OBLIGATION BOND.
AND THE ADDITIONAL RESOURCES TYPICALLY ARE GRANTS TRUST AND OTHER RESTRICTED, UH, REVENUE SOURCES THAT WE RECEIVE, UH, TO HELP SUPPLEMENT, UH, OUR, UH, OPERATING DOLLARS.
MOVING ON TO SLIDE SEVEN, AND ON TO SLIDE EIGHT.
UH, I WANTED TO TALK ABOUT THE PROPOSED BUDGET BY STRATEGIC PRIORITY AREA, EXCUSE ME.
ON SLIDE EIGHT, YOU'LL SEE FOR THE PROPOSED BUDGET, AGAIN, TOTALING $4.6 BILLION, THE PLAN BUDGET, FOUR POINT, UH, FIVE $7 BILLION.
AND YOU CAN SEE HOW MUCH IS ALLOCATED TO EACH OF THE, UH, STRATEGIC PRIORITY AREAS.
BUT I WANNA TALK ABOUT THAT A LITTLE BIT MORE.
ON SLIDE NINE, WE TAKE THE BUDGET AND WE ALIGN THE DIFFERENT SERVICES AND DEPARTMENTS TO ONE OF THE EIGHT STRATEGIC PRIORITY AREAS.
SO WHEN WE TALK ABOUT PUBLIC SAFETY AS AN EXAMPLE, WE ARE NOT JUST TALKING ABOUT POLICE AND FIRE, BUT WE'RE TALKING ABOUT POLICE, FIRE COURTS, MARSHALS, UH, LOOSE STAT JAIL, UH, SOME SERVICES WITHIN THE CITY ATTORNEY'S OFFICE, JUDICIARY, THOSE THINGS ALL MAKE UP THE, UH, PUBLIC SAFETY, UH, STRATEGIC PRIORITY AREA, UH, IN ENVIRONMENTAL AND SUSTAINABILITY.
THIS IS MORE THAN THE OFFICE OF ENVIRONMENTAL QUALITY.
AND SO I'LL MENTION THIS, UH, PARTLY IN RESPONSE TO WHAT SOME OF THE SPEAKERS SAID.
THAT INCLUDES SOME OTHER THINGS IN OTHER DEPARTMENTS BEYOND JUST ENVIRONMENTAL QUALITY.
AND THERE'S A CAPITAL COMPONENT IN ALL OF THE STRATEGIC PRIORITY AREAS.
UH, SO IF WATER OR SEWER HAS AN ACTIVITY OR AN EXPENSE THAT'S RELATED TO ENVIRONMENT OR SUSTAINABILITY, IT WILL BE CAPTURED IN THAT STRATEGIC PRIORITY AREA.
UM, AND SO A LOT OF WHAT YOU SEE WHEN THERE'S DECREASES FROM CURRENT YEAR TO NEXT YEAR, IT IS RELATED TO DECREASES IN THE CAPITAL PROGRAM BECAUSE OUR CAPITAL BUDGET WENT DOWN YEAR OVER YEAR.
AND ALSO OUR ALLOCATION OF DEBT SERVICE, YOU WILL SEE SOME REDUCTIONS THERE.
SO IN ECONOMIC DEVELOPMENT, THE THREE BARS ON THE FAR LEFT SIDE OF THE PAGE, UH, ECONOMIC DEVELOPMENT, BLUE BAR BEING THE CURRENT YEAR, ORANGE IS THE PROPOSED YEAR, AND THE GRAY IS FISCAL YEAR 25 PLANNED.
SO IN ECO, YOU'LL SEE AN INCREASE OF 11.6% AND AN ENVIRONMENT SUSTAINABILITY FROM CURRENT YEAR TO NEXT YEAR, THERE'S A DECREASE OF 10.6%.
THAT IS PRIMARILY A DECREASE IN THE WATER AND SEWER CAPITAL.
UH, PLAN FOR THIS NEXT YEAR, THERE IS A DECREASE IN THE OFFICE OF ENVIRONMENTAL QUALITY, WHICH IS IN THE GENERAL FUND, BUT THAT IS BECAUSE THE CURRENT YEAR HAS $1.5 MILLION OF ONETIME COST FOR A BROWNFIELD PROGRAM THAT IS NOT REPEATED NEXT YEAR.
SO WE DON'T, UH, KEEP ONETIME COST IN YEAR AFTER YEAR.
UH, AND WE LOOK FOR OPPORTUNITIES IN THIS CASE FOR IS THERE FEDERAL FUNDING AVAILABLE TO CONTINUE A BROWNFIELD PROGRAM? AND SO WE BACK THAT OUT.
WE PUT IN SOME MONEY CURRENT YEAR, BUT BACKED IT OUT FOR NEXT YEAR.
THAT IS THE DECREASE WHEN YOU LOOK AT THE OFFICE OF ENVIRONMENTAL QUALITY.
BUT AGAIN, THAT STRATEGIC PRIORITY AREA, PRIMARILY DRIVEN BY THE WATER AND SEWER CAPITAL PROGRAM, G P F M HAS A DECREASE OF ABOUT 12% HOUSING AND HOMELESS SOLUTIONS YEAR OVER YEAR, ABOUT A 7% INCREASE.
PUBLIC SAFETY, 3% INCREASE, QUALITY OF LIFE HAS A 2% DECREASE.
[00:30:01]
7% INCREASE.AND THEN WORKFORCE EDUCATION AND EQUITY ABOUT A 1% INCREASE.
AGAIN, COMPARING THE CURRENT YEAR TO, UH, THE PROPOSED YEAR.
SKIPPING ON TO SLIDE 11, JUST WANNA TALK A LITTLE BIT ABOUT SOME HIGHLIGHTS IN EACH OF THE STRATEGIC PRIORITY AREAS.
AND AGAIN, I'M TALKING ALL FUNDS, SO THERE MAY BE SOME GENERAL FUND, THERE MAY BE SOME OTHER FUNDS THAT ARE INCLUDED IN THESE HIGHLIGHTS AS WE WALK THROUGH THE NEXT EIGHT SLIDES.
SO IN ECONOMIC DEVELOPMENT, WE ARE LAUNCHING A COMMUNITY DEVELOPMENT TEAM TO HELP US ADVANCE COMMUNITY ORIENTED REAL ESTATE PROJECT PROJECTS.
UH, WE REALLOCATED RESOURCES FROM PLANNING AND FROM ECONOMIC DEVELOPMENT.
THIS WAS NOT NEW DOLLARS, BUT A REALLOCATION FROM EXISTING RESOURCES, $1 MILLION, UH, FOR NINE POSITIONS IN THIS OFFICE.
UH, ALSO IN ECONOMIC DEVELOPMENT, WE'VE ADDED $400,000 FOR CONTRACT SERVICES TO AUGMENT STAFF IN PLANNING AND ZONING.
UH, THE, THE INTENT IS TO ADDRESS THE BACKLOG THAT WE'RE EXPERIENCING IN ZONING AND GET THAT TIMELINE DOWN FROM EIGHT TO NINE MONTHS DOWN TO THREE OR FOUR MONTHS.
AND SO WE'VE, UH, PUT IN ADDITIONAL $400,000 FOR CONTRACTS TO HELP AUGMENT STAFF FUNDING.
UH, IN THIS NEXT YEAR, WE'LL CONTINUE OUR IMPLEMENTATION OF THE K BAILEY HUTCHINSON CONVENTION CENTER MASTER PLAN.
AS YOU KNOW, THIS WILL BE FUNDED THROUGH THE, UH, BRIMER FUNDS THAT WILL BECOME AVAILABLE, THE FIRST TRANCHE OF THE BONDS.
WE WILL ISSUE PROBABLY IN THE NEXT 60 DAYS, UH, TO START THAT PROJECT.
WE ALSO, UH, ARE INCREASING OUR FUNDING THAT GOES INTO PUBLIC PRIVATE PARTNERSHIP, UH, BY $500,000.
WE'RE INCREASING IT FROM WHAT WE CURRENTLY PUT IN AT EIGHT AND A HALF MILLION DOLLARS UP TO $9 MILLION.
AND THIS IS JUST A TOOL THAT'S AVAILABLE TO ECONOMIC DEVELOPMENT THEY USE FOR THE CHAPTER THREE 80, UH, LOANS AND GRANTS FOR THE SOUTH DALLAS FAIR PARK OPPORTUNITY FUND, AS WELL AS SOME NEW, UH, USAGES THAT WILL BE, UH, AVAILABLE TO THEM IN THIS NEXT YEAR AS WELL.
UH, WE WILL CONTINUE OUR, UH, PARTICIPATION IN OUR INVESTMENTS IN THE 18 TAX INCREMENT FINANCING DISTRICTS AND NEW THIS YEAR.
THE CITY COUNCIL PASSED THAT AS A, UH, TIF DISTRICT EXPIRES THAT WE TAKE THAT GENERAL FUND PORTION OF THE INCREMENT, AND WE SET THAT ASIDE FOR UP TO 10 YEARS TO INVEST IN INFRASTRUCTURE IN TARGETED AREAS.
SO I BELIEVE WE HAD TWO, UH, TIFS THAT WILL BE EXPIRING.
AND SO THERE'S $6 MILLION OF WHAT WOULD'VE BEEN INCREMENT IN THE PRIOR YEAR THAT NOW WE'RE SETTING IT ASIDE, UH, TO USE FOR THIS INFRASTRUCTURE INVESTMENT FUND.
AGAIN, JUST ANOTHER TOOL FOR ECONOMIC DEVELOPMENT IN TARGET AREAS.
SO MOVING ON TO ENVIRONMENT AND SUSTAINABILITY, AS I MENTIONED, WE CONTINUE OUR ADVANCEMENT OF THE C C A, UH, PLAN.
UH, WE'RE GOING INTO THE FOURTH YEAR OF THAT PLAN AND, UH, INTEND TO MAKE, UH, CONTINUED IMPROVEMENTS IN THAT AREA.
WE'RE INVESTING A HUNDRED THOUSAND DOLLARS TO ESTABLISH THE URBAN AGRICULTURE INFRASTRUCTURE, UH, PROGRAM.
AND WE ALSO ARE HIGHLIGHTED HERE, UH, A NEW FUNDING MECHANISM, UH, IN SANITATION WHERE WE'RE DEVELOPING A, UH, A COMPOSTING SITE AT MCCOMAS BLUFF LANDFILL.
AND SO SANITATION WILL BE WORKING ON A FEASIBILITY STUDY AND DEVELOPMENT OF THAT SITE, UH, WITH AN INVESTMENT THERE.
MOVING ON TO GOVERNMENT PERFORMANCE AND FINANCIAL MANAGEMENT.
ON SLIDE 15, UH, AGAIN, PROPERTY TAX, UH, TAX RATE REDUCTION IS, UH, RECOMMENDED AT A REDUCTION OF 0.65 CENTS, AS WELL AS THE CITY COUNCIL PASSED IN JUNE, AN INCREASE IN THE, UH, OVER 65 AND DISABLED EXEMPTION.
SO THAT IS, UH, PART OF THE SENIOR OR OVER 65, UH, DISABLED, UH, OWNER'S VALUE THAT DOESN'T GET TAXED.
THAT'S WHAT THE EXEMPTION DOES.
IT REDUCES THE AMOUNT OF VALUE THAT GETS TAXED.
SO WE'RE INCREASING THAT FROM 115,000 TO 139,000.
OF COURSE, WE WILL CONTINUE, UH, TO ADDRESS COMPENSATION FOR OUR, UH, NON-UNIFORM EMPLOYEES.
ONE OF THE THINGS THAT WE'VE WORKED ON OVER THE LAST SEVERAL YEARS IS TO INCREASE THAT, UH, LIVING WAGE, THAT MINIMUM WAGE THAT WE PAY TO OUR EMPLOYEES.
UH, BACK IN 2017, IT WAS LESS THAN $11.
WE'RE NOW PROPOSING UP TO $18 AND 50 CENTS AS THE MINIMUM.
THIS KEEPS US JUST ABOVE THE M I T LIVING WAGE, WHICH IS NOW $18 AND 24 CENTS.
WE WILL BE AT $18 AND 50 CENTS.
WE WILL ALSO HAVE OUR ANNUAL MERIT PROGRAM AVERAGE 3%.
WE WILL BE ADJUSTING SOME OF OUR SALARY SCHEDULES TO ADDRESS COMPRESSION.
WE WILL CONTINUE TO LOOK AT HARD TO FIELD POSITIONS AND DO SURVEYS FOR THOSE POSITIONS AND MAKE ADJUSTMENTS AS NECESSARY TO ENSURE THAT WE'RE ABLE TO RECRUIT AND RETAIN THOSE HARD TO FILL POSITIONS.
NOT MENTIONED IN G P F M, BUT ALSO THE MEET AND CONFER AGREEMENT FOR OUR UNIFORM EMPLOYEES WILL HAVE THEIR, UH, PAY ADJUSTMENTS
[00:35:01]
AS WELL.ALSO IN, UH, G P F M, UH, THE ADDITION OF FIVE STAFF IN OUR PROCUREMENT OFFICE TOTAL OF $340,000 TO IMPROVE THAT PROCESS AND REALLY MOVE THOSE PROCUREMENTS AND SOLICITATIONS THROUGH THE PROCESS.
UH, MORE TIMELY IN I T S, WE CONTINUE TO MAKE OUR INVESTMENTS, UH, IN STAFFING RESOURCES AND LONG-TERM SOLUTIONS, AS WELL AS THOSE, UH, SOLUTIONS THAT ARE NECESSARY TO PROTECT, UH, OUR IT ENVIRONMENT.
UH, THE LAST BULLET ON THIS PAGE FOR OUR COMMUNICATION OUTREACH AND MARKETING, WE ARE ADDING ABOUT $481,000 TO ADDRESS, UH, CRISIS COMMUNICATION, MEDIA TRAINING AND LANGUAGE ACCESS.
MOVING TO THE FOURTH OF OUR STRATEGIC AREAS, HOUSING AND HOMELESSNESS SOLUTIONS.
UH, WE'RE CONTINUING OUR PARTNERSHIP, UH, WITH THE CONTINUUM OF CARE AND OUR PARTNER HOUSING FORWARD AS WE ARE RESETTING THE GOAL, UH, TO HOUSE 6,000 INDIVIDUALS BY 25.
UH, WE'RE ALSO INCREASING THE FUNDING THAT'S SET ASIDE FOR INCLEMENT, UH, WEATHER, UH, FACILITIES, UH, BY 250,000 FOR NOW, A TOTAL OF $1.25 MILLION.
AND THEN WE'RE ALSO ADDING TO AND EXPANDING A PROGRAM THAT WE STARTED THIS YEAR FOR MINOR HOME REPAIR FOR SENIORS.
THIS YEAR WE HAD A HUNDRED THOUSAND DOLLARS, BELIEVE THAT PROGRAM KICKED OFF IN FEBRUARY, WHERE WE WANT TO INCREASE THE FUNDING TO 1.7 AND EXPAND IT BEYOND JUST MINOR HOME REPAIR, TO ALSO INCLUDE SOME MAJOR REHAB TYPES OF PROJECTS FOR OUR SENIOR RESIDENTS.
NEXT STRATEGIC PRIORITY AREA IS PUBLIC SAFETY.
AS I MENTIONED IN G P F M, UM, FOR MEET AND CONFER, WE HAVE PUT IN THE PUBLIC SAFETY STRATEGIC PRIORITY AREA, THE FUNDING THAT'S NECESSARY TO FULFILL OUR OBLIGATION UNDER MEET AND CONFER.
MEET AND CONFER, OF COURSE, DOES TWO THINGS.
IT CONTINUES THE STEP PAY INCREASES ON AN EMPLOYEE'S ANNIVERSARY DATE, AS WELL AS MAKES ADJUSTMENTS TO THE PAY SCHEDULES BASED ON A MARKET STUDY THAT'S DONE EACH YEAR.
THAT MARKET STUDY, UH, OUR SURVEY SHOWED A 5.01% INCREASE WAS NEEDED IN OUR, UH, SCHEDULES.
AND SO THAT WILL GO INTO EFFECT.
WE PUT NEARLY $19 MILLION IN FISCAL YEAR 24, AN ADDITIONAL NEARLY 30 MILLION IN FISCAL YEAR 25 FOR A TOTAL OF JUST OVER $48 MILLION OVER THE TWO YEAR PERIOD TO MEET THOSE OBLIGATIONS FOR PAY FOR POLICE AND FIRE UNIFORM EMPLOYEES.
WE WILL CONTINUE TO EXPAND RESOURCES IN THE POLICE DEPARTMENT.
THE INTENT IS TO HIRE 290, UH, POLICE OFFICERS TO CONTINUE, UH, OUR NEW RETENTION INCENTIVE PROGRAM, AND WE ARE INCREASING OVERTIME FUNDING BY ABOUT $14 MILLION.
ADDITIONALLY, IN THE FIRE DEPARTMENT, THE UH, PLAN IS TO ADD 100 FIREFIGHTERS.
UH, WE HAVE A LOT OF OVERTIME, Y'ALL HAVE SEEN IT THIS YEAR.
THE REASON WE HAVE OVERTIME IS BECAUSE WE CAN'T MEET OUR MINIMUM STAFFING LEVEL, WE NEED MORE OFFICERS TO BE ABLE TO MEET THE MINIMUM STAFFING LEVEL THAT'S REQUIRED ON A DAILY BASIS.
THE PROBLEM IS WE HAVE TO FUND TWO THINGS AT ONCE TO GET US THERE.
WE NEED TO CONTINUE TO FUND OVERTIME TO FILL THE SEATS, AND THEN WE NEED TO GET NEW RECRUITS INTO PLACE, GET THEM THROUGH THE TRAINING, GET THEM INTO THE STATIONS BEFORE WE CAN START REDUCING THE OVERTIME.
SO THIS YEAR IS A KIND OF A DOUBLE HIT.
IT IS FUNDING THE OVERTIME TO MEET THE MINIMUM STAFFING REQUIREMENTS, AND IT'S FUNDING THE NEW POSITIONS TO BUILD UP THE STAFFING LEVEL.
WE ALSO PLAN TO, UH, STRENGTHEN OUR PARK SECURITY WITH INCREASES IN OUR PARK RANGERS BY FOUR AND BY ADDING SEVEN ADDITIONAL MARSHALS AS WELL AS ADDING, UH, EQUIPMENT SUCH AS CAMERAS, LIGHTING AND BLUE LIGHT PHONES TO THE TUNE OF ABOUT $700,000 IN OUR PARKS.
AND THEN TECHNOLOGY FOR OUR POLICE DEPARTMENT, WE'VE ADDED $6.4 MILLION FOR BODY-WORN CAMERAS, TASERS, CAMERAS ON MAJOR ROADWAYS, AUTOMATED LICENSE PLATE READERS, DASH, UH, CAMERAS, UH, AND THE LIKE FOR EQUIPMENT FOR THEM TO BE ABLE TO DO THEIR JOB.
AND THEN WE ALSO HAVE $6 MILLION FOR SQUAD CAR REPLACEMENT.
SO A LOT OF, UH, THINGS GO INTO THE POLICE DEPARTMENT BESIDES JUST THE PERSONNEL.
SLIDE 21, QUALITY OF LIFE, ARTS AND CULTURE, UH, STRATEGIC PRIORITY AREA.
UH, IN THE CURRENT YEAR, WE STARTED EXPANDING THE HOURS IN OUR LIBRARIES.
AND FISCAL YEAR 24 WOULD BE PHASE TWO OF THAT, ADDING HOURS IN THE 15 REMAINING LIBRARIES SO THAT ALL LIBRARIES ARE OPEN SIX DAYS A WEEK.
AND SO I LOOKED BACK AT, UH, FISCAL YEAR 22.
BEFORE WE STARTED THIS TWO PHASE APPROACH, WE WERE AT 1050 HOURS A WEEK.
ONCE WE GET THROUGH PHASE TWO, WE WILL BE AT 1,655 HOURS A WEEK, AN INCREASE OF 58% IN THE HOURS PER WEEK THAT ARE PROVIDED THROUGHOUT THE SYSTEM.
[00:40:01]
HAVE FUNDING TO CREATE THE SHORT-TERM RENTAL REGISTRATION AND INSPECTION PROGRAM THAT YOU SPEND A LOT OF TIME TALKING ABOUT BEFORE THE JULY RECESS.WE'VE ADDED NINE POSITIONS AND $1.4 MILLION.
WE CONTINUE OUR INVESTMENTS IN NEIGHBORHOODS.
WE'VE GOT FUNDING SET ASIDE FOR, UH, FENCING, UH, FOR OPEN AND VACANT STRUCTURES, AND THEN ADDITIONAL $250,000 FOR DEMOLITION OF UNSAFE STRUCTURES.
WE'RE ADDING $250,000 IN DALLAS ANIMAL SERVICES TO CONTINUE THE SPAY NEUTER, UH, PROGRAM AND EXPAND THAT.
THIS REALLY REPLACES GRANT FUNDING THAT WE'VE HAD.
SO WE DO NEED THE FUNDING TO BE ABLE TO CONTINUE THAT SERVICE.
AND THEN LASTLY ON THIS PAGE IS, UH, ABOUT, UH, TWO AND A HALF TO $3 MILLION IN PARK AND RECREATION FOR, UH, THE O AND M COST RELATED TO NEW PARKS AND TRAILS AND FACILITIES IN THE PARK SYSTEM, AS WELL AS, UH, SPECIALIZED EQUIPMENT THAT THEY NEED TO UPKEEP THE PARKS AND TRAILS IN TRANSPORTATION AND INFRASTRUCTURE.
ON SLIDE 23, UH, IN FISCAL YEAR 24, WE WILL BE INVESTING $150 MILLION IN THE PROJECTS THAT PUBLIC WORKS DELIVERS, SUCH AS OUR LANE MILES, OUR SIDEWALK, SIDEWALK PROJECTS, BRIDGE MAINTENANCE, AND, AND THOSE TYPES OF PROJECTS.
THIS IS DOES NOT INCLUDE THE $90 MILLION THAT WE'RE RECEIVING FROM DART THAT WILL ALSO BE USED IN AREAS SUCH AS TRAFFIC SIGNALS, TRAFFIC MARKINGS, A D A, RAMPS, SIDEWALKS, ET CETERA.
ALTHOUGH WE DON'T HAVE ADDITIONAL BOND FUNDS FUNDS AT THIS POINT, BY HAVING THE DART FUNDS IN THIS INVESTMENT, WE ARE CONTINUING TO MAKE A SIGNIFICANT INVESTMENT IN INFRASTRUCTURE.
THE SECOND BULLET ON THIS PAGE, UH, $2 MILLION, UH, FOR A SIDEWALK COST SHARE PROGRAM.
THERE IS A PROGRAM THAT ALLOWS, UH, RESIDENTS TO PAY FOR HALF OF THE SIDEWALK REPAIRS AND THE CITY WILL PAY FOR HALF, BUT UNFORTUNATELY, SOME OF OUR RESIDENTS ARE NOT ABLE TO PAY THEIR HALF.
AND SO WE'RE PUTTING $2 MILLION IN THE BUDGET AS A GRANT PROGRAM TO PROVIDE, UH, TO RESIDENTS TO MEET THEIR 50% SHARE OF THOSE SIDEWALK IMPROVEMENTS.
UH, WE'RE CONTINUING THE INTEGRATED PIPELINE PROJECT THAT, UH, DALLAS WATER UTILITY HAS BEEN WORKING ON TO BRING LIKE, LIKE PALESTINE TO DALLAS, UH, TO, TO EXPAND OUR WATER, UH, COMING INTO THE CITY, UH, WE WILL INVEST $35 MILLION IN STORM WATER AND DRAINAGE MANAGEMENT PROJECTS.
AND THEN LASTLY ON THIS PAGE, UH, INVESTING $9.5 MILLION IN CITY FACILITY MAINTENANCE NEEDS.
SO WE HAVE MAJOR MAINTENANCE PROJECTS.
THIS IS IN ADDITION TO THE, THE NORMAL, UH, O AND M OF A FACILITY.
THIS WOULD BE TO ADDRESS ROOFS OR H V A C SYSTEMS OR, OR MAJOR MAINTENANCE TYPES OF PROJECTS.
SO NINE AND A HALF MILLION DOLLARS.
AND IT WASN'T THAT MANY YEARS AGO THAT WE WERE ONLY INVESTING ABOUT $5 MILLION A YEAR, AND SO WE'RE REALLY PROUD OF BEING ABLE TO INCREASE THAT.
ALTHOUGH IT'S STILL NOT ENOUGH, UH, WE ARE HAPPY THAT WE'VE GOTTEN IT UP.
UH, THE LAST OF THE STRATEGIC PRIORITY AREAS ON SLIDE 25 IS WORKFORCE EDUCATION AND EQUITY.
UH, WE'RE EXPANDING THE, UH, GREEN JOB SKILLS PROGRAM THAT IS OFFERED THROUGH O E Q S, UH, AN ADDITIONAL A HUNDRED THOUSAND DOLLARS TO EXPAND THAT PROGRAM FROM JUST A WEATHERIZATION TRAINING PROGRAM TO ALSO INCLUDE SOLAR, ELECTRIC VEHICLES, ENERGY EFFICIENT TYPES OF, OF TRAINING.
THE SECOND BULLET ON THE PAGE, WE'VE SET ASIDE A HUNDRED THOUSAND DOLLARS, UH, FOR A FAIR HOUSING EQUITY PLAN, WHICH IS REQUIRED BY THE, UH, FAIR HOUSING ACT.
SO WE'LL BE UNDERTAKING THAT IN THE NEW YEAR.
WE'VE ALSO SET $120,000 ASIDE FOR OUR ARCHITECTURAL DESIGN CONSULTANT TO HELP US FURTHER OUR A D A TRANSITION PLAN.
UH, AND THE LAST TWO BULLETS ON THE PAGE ARE RELATED TO SENIOR SERVICES.
UH, WE GOT A LOT OF REALLY GOOD FEEDBACK FROM THAT COMMISSION, AND WE'VE ADDED, UH, AN AGE FRIENDLY OFFICER TO SERVE AS THE SINGLE POINT OF CONTACT TO SUPPORT, UH, AWARENESS AND CURRENT PROGRAMS THAT WE HAVE.
SO THAT'S ABOUT A HUNDRED THOUSAND DOLLARS.
AND THEN THE LAST BULLET, $250,000 FOR A SENIOR SERVICES STRATEGIC PLAN TO REALLY HELP US PLAN FOR THE FUTURE FOR THAT COMMUNITY.
SO I'M GONNA MOVE INTO GENERAL FUND REVENUE IF I CAN.
MOVING ON TO SLIDE 27, THIS IS THE GRAPH THAT I, YOU SAW SEVERAL PAGES AGO.
IT'S JUST HERE TO SHOW THAT THE, UH, PURPLE CIRCLE IS AROUND THE GENERAL FUND.
SO THAT'S WHAT WE'RE GONNA START TALKING ABOUT OVER THE, THE NEXT SEVERAL PAGES.
THE $1.84 BILLION GENERAL FUND.
SO SLIDE 28 SHOWS, UH, A SIMPLE PIE CHART OF THE REVENUE.
UH, PROPERTY TAX MAKES UP 57% OF THE REVENUE INTO THE GENERAL FUND.
SELLS TAX ACCOUNTS FOR 25% OF THE REVENUE FRANCHISE FEES ACCOUNT FOR 7%, AND ALL OF THE OTHER REVENUES CHARGES FOR SERVICES.
INTEREST EARNINGS, UH, INTERGOVERNMENTAL ACCOUNT FOR 11% OF THE REVENUES ON SLIDE 29.
[00:45:01]
UH, A LITTLE MORE DETAIL ON THE REVENUES, GIVING THE FISCAL YEAR 22 ACTUALS.UH, 23 BUDGET AND FORECAST, AND THEN 24 AND 25.
AS YOU SEE THERE, PROPERTY TAX GOING UP FROM THE CURRENT YEAR OF $961 MILLION BUDGETED TO 1,000,000,054.
THAT'S AN INCREASE OF ABOUT $93 MILLION YEAR OVER YEAR SALES TAX WE HAVE GOING UP FROM 417 MILLION TO 451 MILLION, THAT'S AN INCREASE OF $34 MILLION.
SO THOSE ARE THE TWO LARGEST REVENUES, AND THEY'RE THE TWO LARGEST INCREASES THAT YOU'LL SEE ON THE PAGE.
ANOTHER NOTEWORTHY INCREASES IN OUR INTEREST EARNINGS.
UH, OUR, OUR EARNINGS WERE DOWN TO JUST ALMOST NOTHING.
WE'VE MOST RECENTLY HAD, UH, OVER 3.3% EARNINGS ON SOME OF OUR INVESTMENTS.
SO YOU WILL SEE THAT REFLECTED IN OUR INTEREST EARNINGS UPTICK AS A REVENUE, UH, SOURCE HERE ON SLIDE 30, UH, GOING INTO PROPERTY TAX, AGAIN, THE SINGLE LARGEST REVENUE SOURCE FOR THE GENERAL FUND, 57%.
THAT'S BROKEN DOWN INTO WHAT GOES TO THE GENERAL FUND, A BILLION AND ABOUT 400 MILLION THAT GOES TO DEBT SERVICE.
WHEN WE TALK ABOUT PROPERTY TAX, IT'S ALWAYS A CALCULATION OF VALUE, EXEMPTIONS AND TAX RATE.
SO ON SLIDE 31, JUST TALKING ABOUT VALUE FOR A SECOND, UH, WE DID GET OUR CERTIFIED VALUES FROM THE FOUR APPRAISAL DISTRICTS ON JULY 25TH.
VALUES ARE NOW $198.3 BILLION IN THE CITY.
THAT'S AN 18.8% INCREASE, OR 10, 10% INCREASE THAT'S MADE UP OF NEW CONSTRUCTION, WHICH WAS 3.7 BILLION OF THAT.
AND REAPPRAISAL IS $194 BILLION.
SLIDE 32 SHOWS THE HISTORY OF, UH, PROPERTY VALUES GOING ALL THE WAY BACK TO, UH, 1983.
SO OVER THE 40 YEARS, WE HAVE ONLY HAD, UH, VALUE HIGHER THAN WHAT WE HAVE THIS YEAR.
TWICE IN FISCAL YEAR 86 IN FISCAL YEAR.
UH, 23 WE'RE HIGHER THAN THE 10.5 THAT WE HAVE FOR, FOR THIS NEW YEAR.
UH, BUT OUR LONG-TERM AVERAGE IS ONLY 5%.
SO WE, UH, THIS YEAR WAS AN ANOMALY TO, TO SOME EXTENT.
UH, AVERAGE 5% THIS YEAR WAS 10.5.
ON SLIDE 33, UH, MORE INFORMATION ON PROPERTY VALUES.
AGAIN, THE VALUES ON THE FAR LEFT IS BROKEN DOWN BETWEEN REAPPRAISAL AND NEW CONSTRUCTION.
OUR NEW CONSTRUCTION, UH, THIS YEAR IS GENERATING ABOUT $28 MILLION OF OUR REVENUE GROWTH.
I MENTIONED EARLIER ABOUT 93 MILLION, I BELIEVE.
AND, UH, ALMOST, UH, 28 OF IT IS COMING FROM, UH, NEW CONSTRUCTION.
UH, GOING INTO SLIDE 34, TALKING ABOUT EXEMPTIONS, AGAIN, EXEMPTIONS REDUCE THE VALUE THAT YOU HAVE TO PAY TAXES ON.
SO IF YOUR HOME IS VALUED AT A HUNDRED THOUSAND DOLLARS, YOU HAVE A 20% HOMESTEAD EXEMPTION.
IT REDUCES THE AMOUNT THAT YOU HAVE TO PAY TAXES ON, UH, BY $20,000.
SO WE HAVE THE HOMESTEAD EXEMPTION OF 20%, THE MAXIMUM ALLOWED BY STATE LAW, WE EXEMPT FROM TAXING $16 BILLION OF VALUE.
IF WE TAXED IT, IT WOULD BE WORTH $117 MILLION IN REVENUE.
OUR OVER 65 AND DISABLED EXEMPTION THAT YOU INCREASED ON JUNE 14TH, THERE'S EIGHT AND A HALF BILLION DOLLARS OF VALUE THAT WE DO NOT TAX.
IF WE DID TAX IT, IT WOULD BE WORTH ABOUT $63 MILLION IN REVENUE.
ON SLIDE 35, HISTORY OF OUR EXEMPTIONS, UH, BACK TO 2008.
AND YOU CAN SEE HOW THE EXEMPTIONS HAVE CHANGED OVER TIME.
UH, HOMESTEAD EXEMPTION, THE OVER 65, UH, AND SO FORTH ARE SHOWN ON THAT PAGE.
SO THE SECOND PART OF PROPERTY TAX, UH, WELL THIRD VALUE EXEMPTIONS AND NOW TAX RATE.
ON SLIDE 36, UH, THE TAX RATE IS SPLIT BETWEEN THE GENERAL FUND AND THE DEBT SERVICE FUND.
ABOUT 72% OF OUR RATE IS, GOES TO THE GENERAL FUND.
AGAIN, WE'RE PROPOSING A REDUCTION OF 0.65 CENTS.
THAT EQUALS ABOUT $13 MILLION OF REVENUE.
WE'VE ADDED A TABLE THERE ON THE BOTTOM RIGHT THAT SHOWS THE VALUE OF DIFFERENT INCREMENTS OF THE TAX RATE.
THE VALUE OF 1 CENT IS NOW 19.5, AND YOU MAY THINK THAT'S NOT THE NUMBER THAT YOU REMEMBER.
THAT'S BECAUSE WHEN THE VALUE GOES UP, THE 1 CENT CHANGES.
SO, UH, JULY 25TH, THAT NUMBER, UH, CHANGES A LITTLE BIT.
UH, SLIDE 37, UH, BREAKDOWN OF OUR TAX RATE BETWEEN GENERAL FUND AND DEBT SERVICE.
AND YOU CAN SEE THE EIGHT YEARS OF CONSECUTIVE REDUCTION.
AND IF WE DID NOT LOWER OUR TAX RATE BY THAT 5.77 CENTS, WE WOULD BE GENERATING ANOTHER A HUNDRED MILLION DOLLARS OR SO IN ADDITIONAL REVENUE.
[00:50:01]
UH, ON SLIDE 38, UH, MORE HISTORY ON, UH, JUST SHOWING THE INCREASES OF THE TAX RATE OR THE DECREASES.AND AGAIN, ON THE FAR RIGHT YOU'LL SEE THE EIGHT YEARS WHERE WE'VE HAD DECREASES.
LAST YEAR, OR FOR THE CURRENT YEAR, WE HAD A 2.75, UH, CENT REDUCTION.
THIS PROPOSED YEAR IS 0.65 PROPERTY TAX BILL.
SO, UH, WHAT DOES THIS MEAN TO A RESIDENT? UH, WELL, ASSUMING THE TYPICAL VALUE BEING THE MEDIAN AT $334,000, NOW THAT'S UP ABOUT 4% FROM THIS CURRENT YEAR.
THE CURRENT YEAR MEDIAN VALUE IS 320,000.
SO WE'RE UP TO $334,000 FOR THE MEDIAN VALUE.
ASSUMING YOU HAVE THE OVER SIX, I'M SORRY, THE HOMESTEAD EXEMPTION OF 20%, THEN WHAT WOULD THE 23 RATE VERSUS THE 24 RATE DO TO YOUR TAX BILL? IT WOULD DECREASE IT FROM, UH, $1,997 AND 1 CENT DOWN BY $17 AND 40 CENTS.
IF YOU ALSO HAVE THE HOMESTEAD EXEMPTION, SO AGAIN, THE HOMESTEAD EXEMPTION WENT UP, SO YOU PAY TAX ON LESS VALUE.
UH, AND THEN THE REDUCTION IN THE, THE TAX RATE, YOU WOULD HAVE ABOUT $186 AND 59 CENTS, UH, SAVINGS.
OF COURSE, YOUR TAX BILL DEPENDS ON THE VALUE OF YOUR HOME.
EVERYBODY'S HOME IS VALUED DIFFERENTLY, SO EVERYBODY'S TAX BILL IS GOING TO BE DIFFERENT.
UH, REGARDING STATE LAW, UH, THERE ARE CERTAIN THINGS THAT WE HAVE TO, UH, NOTIFY THE PUBLIC OF.
UH, WE WORK WITH DALLAS COUNTY TAX OFFICE ON THE CALCULATION OF SOME RATES.
SO OUR CURRENT RATE, 74.58 CENTS.
THE PROPOSED RATE 73.93, AGAIN, THE 0.65 REDUCTION.
DALLAS COUNTY, UH, CALCULATED TWO RATES FOR US.
THE NO NEW REVENUE RATE IS 68.13 CENTS.
UH, IT USED TO BE CALLED THE EFFECTIVE RATE.
IT'S THE RATE THAT, UH, WOULD GENERATE THE SAME AMOUNT OF REVENUE ON PROPERTY TAXED IN THE OLD YEAR AS PROPERTY TAXED IN THE NEW YEAR.
SO IF WE WANTED TO LOWER THE TAX RATE DOWN TO THAT, WE WOULD REDUCE IT BY ANOTHER 6 CENTS.
WE WOULD NEED TO CUT $113 MILLION OF REVENUE.
WE WOULD NEED TO CUT 113 MILLION OF EXPENSES.
THE VOTER APPROVAL RATE ALLOWS FOR CERTAIN GROWTH.
UH, THAT, UH, CALCULATED RATE BY DALLAS COUNTY IS 74.82 CENTS.
WE'RE UNDER THAT, WE'RE UNDER THAT BY 0.89 CENTS.
UH, IF WE WANTED TO GO UP TO THAT RATE, WE WOULD BE ABLE TO ADD $17 MILLION OF REVENUE AND 17 MILLION OF EXPENSES.
UH, THE VOTER APPROVAL RATE, UH, USED TO, YOU HAD TO HAVE A PETITION AND VOTERS COULD PETITION FOR AN ELECTION.
IF WE GO UP TO THAT RATE, THERE'S AN AUTOMATIC ELECTION.
SO, UH, WE HAVE A NOTE AT THE BOTTOM ABOUT UNUSED INCREMENT, AND I WANT TO TALK ABOUT THAT IN JUST A COUPLE OF SLIDES.
SO I'LL, I'LL RETURN TO THAT ON SLIDE 41.
STILL FURTHER ON STATE LAW REQUIREMENTS, UH, BECAUSE OUR PROPOSED RATE EXCEEDS THE NO NEW REVENUE RATE, WE ARE REQUIRED TO PUBLISH A NOTICE IN THE NEWSPAPER, HOLD A PUBLIC HEARING, AND THEN ADOPT THE TAX RATE.
THESE ARE REQUIRED BY STATE LAW.
UH, THE FOLLOWING ACTIONS WOULD BE NEEDED ON AUGUST THE 23RD.
WE WOULD NEED A VOTE ON A SPECIFIC TAX RATE.
YOU CAN LOWER THE RATE AFTER AUGUST 23RD, BUT YOU CAN'T RAISE THE RATE AFTER AUGUST THE 23RD.
WHATEVER YOU SPECIFY ON THAT DATE IS YOUR CEILING.
WE'LL NEED A, A RECORD VOTE ON THAT DAY.
WE'LL SCHEDULE THE PUBLIC HEARING ON THAT DAY.
WE WILL THEN RUN A NOTICE IN THE NEWSPAPER ON SEPTEMBER THE NINTH.
WE'LL HAVE OUR PUBLIC HEARING AND THEN ADOPT THE TAX RATE ON SEPTEMBER THE 20TH.
ON SLIDE 42, UNUSED INCREMENT.
SO THE TEXAS PROPERTY TAX REFORM AND TRANSPARENCY ACT OF 2019 SETS THE CAP ON PROPERTY TAX GROWTH FOR THE GENERAL FUND BY 3.5%, PLUS NEW CONSTRUCTION.
AND YOU'RE THINKING WE'VE GROWN MORE THAN THAT.
WE HAVE BECAUSE THERE'S ANOTHER, UH, PART OF THAT LEGISLATION THAT ALLOWS YOU TO BANK FOR THREE YEARS WHAT'S REFERRED TO AS THE UNUSED INCREMENT.
THAT IS THE DIFFERENCE BETWEEN WHAT THE VOTER APPROVAL RATE IS AND THE RATE THAT WE ADOPT.
SO BACK IN FISCAL YEAR 21, THE CALCULATED VOTER APPROVAL RATE WAS 88.72.
SO YOU HAD AN UNUSED INCREMENT OF 11.09 CENTS.
YOU CAN USE THAT FOR UP TO THREE YEARS, AND THEN IT GOES AWAY.
SO WE COULD USE IT IN 22, 23, AND 24.
AND THE REASON THAT OCCURRED IS BECAUSE IF YOU'LL REMEMBER, FISCAL YEAR 21, WE WERE PUTTING THAT BUDGET TOGETHER IN THE SUMMER OF 20.
THE APPRAISAL DISTRICTS WERE HAVING TROUBLE, UH, APPRAISING ALL THE PROPERTIES.
THEY WERE HAVING TROUBLE CERTIFYING THEIR ROLE.
AND SO WHAT WAS SUBMITTED AT THE TIME THAT WAS REQUIRED FOR THE COUNTY TO DO THE CALCULATIONS, UH, D A
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HAD A MUCH LOWER NUMBER 'CAUSE THEY WEREN'T FINISHED WITH THEIR WORK.THE LOWER NUMBER RESULTED IN A MUCH HIGHER VOTER APPROVAL TAX RATE.
AND SO AS A RESULT OF THAT, WE HAD THE INCREMENT.
SO WE HAVE USED, ON PAGE 43, YOU'LL SEE THAT IN COLUMN FISCAL YEAR 21, WE HAD 11.09 CENTS OF UNUSED INCREMENT.
WE USED TWO POINT 11 CENT, 2.11 CENT IN 22.
WE USED 4.45 CENT OF IT IN 23.
AND WE'RE PROPOSING TO USE 3.65 CENT OF IT IN 24, EVEN USING THE 3.6 JACK, I'M GONNA ASK YOU TO PAUSE WHERE YOU ARE RIGHT NOW.
I WAS GONNA TRY TO GET THROUGH PROPERTY TAX TO SALES TAX TO TAKE A SHORT RECESS SO WE DON'T LOSE QUORUM FOR FIVE MINUTES.
WE'LL TAKE A FIVE MINUTE RECESS RIGHT NOW.
JACK, I'M SORRY TO INTERRUPT YOU, BUT YOU CAN GO AHEAD.
SO WE WERE ON SLIDE 43 AND, UM, SHOWING THAT IN FISCAL YEAR 21, WE, WE HAD THE UNUSED INCREMENT.
AS A RESULT OF THE WAY THE CALCULATION OCCURRED THAT YEAR, WE'VE USED 2.11 CENTS.
IN 22, WE USED ANOTHER 4.45 CENTS IN 23 USING 3.65 CENTS THIS YEAR.
THIS YEAR, IT'S EITHER USE IT OR LOSE IT BECAUSE IT ONLY LASTS FOR THREE YEARS.
SO THAT HAS ENABLED US TO, UM, TO, TO HAVE THE TAX RATE THAT WE HAVE PROPOSED.
SO THERE'LL PROBABLY BE QUESTIONS ON UNUSED INCREMENT AND WE'LL GET BACK THERE I GUESS.
SALES TAX BEING THE SECOND, UH, LARGEST REVENUE FOR THE GENERAL FUND, OF COURSE, IT'S 8.25%.
UH, 6.25 GOES TO THE STATE, 1% COMES TO THE CITY, 1% GOES TO DART.
UM, THE STATE, STATE LAW IDENTIFIES WHAT'S TAXABLE GOODS AND SERVICES.
UM, SALES TAXES ARE MOST VOLATILE REVENUE.
WE DO SEE THAT THE TREND IS CHANGING, IT'S SLOWING, IT'S STILL GROWING, BUT WE EXPECT THAT IT WILL SLOW AND RETURN TO MORE OF THE HISTORICAL NORMAL, UH, FOR, UH, FOR THE CITY.
SO FISCAL YEAR 24 AND 25, WE DON'T EXPECT THE HIGH RATE OF GROWTH THAT WE'VE SEEN THE LAST FEW YEARS.
UH, WE EXPECT TO BE ABOUT 5% GROWTH OVER THE NEXT COUPLE OF YEARS.
ON SLIDE 45, YOU SEE THE LONG-TERM HISTORY OF OUR SALES TAX.
ANOTHER WAY OF LOOKING AT SALES TAX AND HOW IT IS A PERCENT CHANGE YEAR OVER YEAR.
AND SO YOU SEE HERE IN 21 AND 22, WHERE WE HAD 14% GROWTH AND 15% GROWTH.
WE EXPECT THAT WE WILL RETURN TO MORE OF OUR NORMAL.
OUR LONG-TERM AVERAGE IS 4.1% GROWTH.
WE EXPECT THAT WE'RE GONNA RETURN CLOSER TO 4.1, WE THINK 4.4 FOR FISCAL YEAR 24 AND FIVE, UH, PERCENT FOR, UH, FISCAL YEAR 25, UH, FEE REVIEW.
ON SLIDE 47, WE HAVE A FINANCIAL MANAGEMENT PERFORMANCE CRITERIA NUMBER 12 THAT REQUIRES THAT WE LOOK AT FEES.
THIS IS OUR CHARGES FOR SERVICES REVENUE.
UH, WE LOOK AT THAT, WE USE A CONSULTANT.
UH, THIS YEAR ON SLIDE 48, YOU'LL SEE THE, UH, FIVE DEPARTMENTS THAT WE LOOKED AT, ANIMAL SERVICES CODE, FIRE, POLICE, AND ENVIRONMENTAL QUALITY.
IN TOTAL, WE ARE ADJUSTING FEES, UH, THAT WOULD RESULT IN ADDITIONAL THREE AND A HALF, UH, MILLION DOLLARS OF INCREASED REVENUE FOR FISCAL YEAR 24.
THE APPENDIX OF THE, THE POWERPOINT, THE BRIEFING HAS ALL OF THE INDIVIDUAL FEES.
SO JEANETTE, WE'RE TURNING IT TO MS. WHEDON.
GOOD MORNING AND THANK YOU MR. IRELAND.
UM, MY NAME IS JEANETTE WHEDON.
I SERVE AS THE DIRECTOR OF BUDGET AND MANAGEMENT SERVICES.
UM, I HAVE THE PLEASURE OF WALKING THROUGH THE GENERAL FUND EXPENSES, ENTERPRISE FUNDS, OUR EMPLOYEE HEALTH BENEFITS FUND, UM, INFORMATION TECHNOLOGY SERVICES, OUR COMMUNITY ENGAGEMENT EFFORTS, AND THEN OF COURSE THE REMAINING STEPS IN THE BUDGET TIMELINE.
UM, THE NEXT FEW SLIDES STARTING ON SLIDE NUMBER 50, HIGHLIGHT THE GENERAL FUND EXPENSE DRIVERS.
UH, THE GENERAL FUND PROPOSED BUDGET AND AS MR. ILAN MENTIONED, IS 1.8 BILLION OR 8.1% MORE THAN THE FISCAL YEAR 23 ADOPTED.
UH, THE BIGGEST EXPENSE DRIVERS, UM, IN THE GENERAL FUND, UM, INCLUDE AS MENTIONED, OUR MEET AND CONFER AGREEMENT.
UM, THAT IS OUR, UH, OUTLINE MARKET-BASED PAY PHILOSOPHY.
UM, AS MR. IRELAND MENTIONED, UM, OUR RECOMMENDATION INCLUDES AN INCREASE OF 5.01%.
UM, WE ALSO HAVE INCLUDED IN THE, UH, PROPOSED BUDGET, UH, POLICE AND FIRE OVERTIME AT 36.4 MILLION.
AND THEN ADDITIONAL STAFFING FOR, UH, DALLAS FIRE RESCUE AT 10.1.
MOVING ON TO UM, SLIDE NUMBER 51, WE SHOW ADDITIONAL, UM, EXPENSE DRIVERS HERE.
UH, D P D TECHNOLOGY TOTALS FOUR POINT, UH, 9 MILLION,
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PRIMARILY DUE TO BODY-WORN CAMERAS AND TASERS.OTHER D P D ENHANCEMENTS INCLUDE ADDITIONAL NON-UNIFORM POSITIONS TO SUPPORT, UM, UNIFORM OVER TIME.
YOU ALSO SEE LISTED ON HERE PARK SECURITY IN RESPONSE TO, UM, CONCERNS RAISED, UH, RECENTLY REGARDING OUR PARK, PARK AND TRAILS.
AND THEN OF COURSE, AS MENTIONED, UM, EXPANDED LIBRARY HOURS AT 3.1 MILLION.
OUR TIF INFRASTRUCTURE FUND THAT WAS APPROVED BY CITY COUNCIL IN JANUARY AT 6 MILLION.
AND THEN I T S INVESTMENTS OF 9.2 MILLION AND THEN INCREASES IN OUR HEALTH BENEFITS AT 14.6 MILLION.
ON SLIDE NUMBER 52, WE SHOW THE REMAINING EXPENSE DRIVERS.
UM, THE INCREASE, UM, IN RISK MANAGEMENT IS PRIMARILY DUE TO OUR INSURANCE, UH, PROGRAMS AT 4.2 MILLION AND THEN FUEL AND FLEET EXPENSES AT 2 MILLION.
UM, AS PREVIOUSLY MENTIONED, UM, WE DO INCLUDE COMPENSATION INCREASES FOR OUR NON-UNIFORM EMPLOYEES.
THAT INCLUDES THAT PLANNED, UM, AVERAGE MERIT OF 3%.
THERE'S THE INCREASE IN THE MINIMUM WAGE UP TO 1850 PER HOUR.
AND AS PART OF OUR COMPENSATION RECOMMENDATION, ONCE YOU MOVE THE MINIMUM WAGE UP, UM, WE DO PLAN TO ADDRESS COMPRESSION BETWEEN THE GRADES.
SO THAT'S INCLUDED IN THAT FUNDING AS WELL.
UH, JUST A REMINDER ON SLIDE NUMBER 53, UM, THE CITY RELIES ON EMPLOYEES TO DELIVER THE SERVICES THAT THAT WE OFFER.
AND SO IN THE GENERAL FUND, I ALWAYS LIKE TO, UH, REMIND, UM, THE COMMUNITY THAT, UM, APPROXIMATELY 70% OF GENERAL FUND EXPENSES ARE RELATED TO PERSONAL SERVICES COSTS.
THAT INCLUDES OUR PAY OVERTIME, HEALTH BENEFITS, PENSION LIFE INSURANCE, AS WELL AS WORKERS' COMPENSATION.
MOVING ON TO SLIDE NUMBER 54, UH, THE PIE CHART BREAKS DOWN THE GENERAL FUND EXPENSES BY STRATEGIC PRIORITY.
AS PREVIOUSLY MENTIONED, UM, PUBLIC SAFETY UM, INCLUDES MORE THAN JUST POLICE AND FIRE.
AND SO ON THIS SLIDE, YOU CAN SEE THAT IT REFLECTS 61% OF GENERAL FUND FUNDING.
MOVING ON TO SLIDE NUMBER 55, WE SHOW EXPENSES ALIGNED TO OUR STRATEGIC PRIORITY AREAS.
SO THIS SLIDE SHOWS THE CURRENT YEAR, UH, FISCAL YEAR 23, THE PROPOSED AMOUNT FOR FISCAL YEAR 24, AND THEN OUR PLANNED YEAR FOR FISCAL YEAR 25.
AND SO, AGAIN, YOU CAN SEE ON THIS SLIDE THAT THE, UM, BIGGEST EXPENSE DRIVER, UH, FOR THE GENERAL FUND IS PUBLIC SAFETY.
ON SLIDE NUMBER 56, WE SHOW THE EXPENSE PIE CHART AGAIN, UM, WITH THE REVENUE OVERLAY ON TOP.
AND SO, AS YOU CAN SEE ON THIS PARTICULAR SLIDE, UH, PUBLIC SAFETY REQUIRES A HUNDRED PERCENT OF PROPERTY TAXES AND 17% OF OUR SALES TAX REVENUE, UM, IN ORDER TO FUND THOSE EXPENSES.
MOVING ON TO, UH, GENERAL PURPOSE CAPITAL AND OUR GENERAL OBLIGATION DEBT SERVICE FUND.
YOU CAN SEE THE PURPLE CIRCLES ON THIS PARTICULAR SLIDE.
I'LL START WITH OUR GENERAL PURPOSE CAPITAL.
ON SLIDE NUMBER 56, OR SORRY, 59.
UH, THE CAPITAL BUDGET TOTALS 366.8 MILLION.
UM, IT INCLUDES PROJECTS THAT ARE PRIMARILY SUPPORTED THROUGH BOTH OUR DEBT ISSUANCE AND PAY AS YOU GO FINANCING.
SO THESE PROJECTS INCLUDE STREET AND ALLEY FUNDING, FLOOD PROTECTION, AND CITY FACILITIES.
UM, AS MR. IRELAND MENTIONED, ASSUMPTIONS ABOUT THE 2024 BOND PROGRAM ARE NOT INCLUDED IN THE FISCAL YEAR 24 PROPOSED BUDGET.
IF THE BOND PROGRAM IS APPROVED BY THE VOTERS, UM, WE WILL AMEND THE BUDGET SO THAT STAFF CAN IMMEDIATELY BEGIN WORK ON THOSE PROJECTS.
ON SLIDE NUMBER 60, WE SHOW THE DEBT SERVICE FUND AT 420.7 MILLION, AND THIS INCLUDES PRINCIPAL AND INTEREST ON EXISTING DEBT OF 342.9 MILLION.
UM, WE ARE ALSO ASSUMING THAT WE WILL ISSUE THE REMAINING BONDS FOR THE 2017 BOND PROGRAM THIS FALL.
AND THEN WE ALSO HAVE, UM, CERTIFICATES OF OBLIGATION PAY, UM, UH, ISSUANCE PLAN FOR STREET, UH, AND ALLIE WORK, UH, MASTER LEASE EQUIPMENT NOTES, AS WELL AS TIFF INCREMENT PAYMENTS.
ON SLIDE NUMBER 63, WE START, UH, OR 61, WE START THE DISCUSSION RELATED TO OUR ENTERPRISE FUNDS.
AND SO I'LL START WITH, UH, AVIATION ON SLIDE NUMBER 63.
UH, THE TOTAL OPERATING BUDGET FOR AVIATION IS 184.8 MILLION.
THIS REFLECTS A 13% INCREASE, OR 24 POINT OR 24 MILLION COMPARED TO FISCAL YEAR 23.
THE INCREASE IN EXPENSES REFLECTS THE RETURN TO PRE PANDEMIC LEVELS OF PASSENGER TRAFFIC, UH, FOR FISCAL YEAR 24, UH, AVIATION PROJECTS IN EMPLOYMENTS OF 10.2 MILLION.
THE BUDGET WILL FUND FLEET EQUIPMENT, UH, FURNITURE REPLACEMENT, UM, AT LOVE FIELD IT INFRASTRUCTURE,
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STREET SCAPE ENHANCEMENTS ALONG LEMON AVENUE, AS WELL AS CONTRACT INCREASES IN ADDITIONAL STAFF.