Jan 22, 2024 Council Government Performance & Financial Management Committee

[00:00:01]

OKAY. IT IS NOW 2:00.

ARE WE READY? WE HAVE A QUORUM.

[Council Government Performance & Financial Management Committee on January 22, 2024.]

SO I'M GOING TO GO AHEAD AND CALL, THIS MEETING OF THE GOVERNMENT PERFORMANCE AND FINANCIAL MANAGEMENT COMMITTEE TO ORDER.

WE WILL START OFF WITH APPROVAL OF THE DECEMBER 12TH, 2024 MINUTES.

THANK YOU FOR THAT. WE HAVE A MOTION.

AND SECOND, ALL THOSE IN FAVOR SAY AYE.

ANY OPPOSED? WE'RE GOOD.

ALL RIGHT. NOW, A LITTLE BIT OF HOUSEKEEPING BEFORE WE GET INTO BRIEFING ITEM A, JUST SO YOU GUYS KNOW WHAT'S GOING ON.

AND THEN I'LL KICK OFF A HERE WE ARE GOING TO START OFF WITH THE ECONOMICS OF LAND USE IN DALLAS COUNTY.

WE HAVE A HARD STOP TIME OF 240 FOR JOE MINICOZZI WHO'S THE GOING TO BE OUR MAIN PRESENTER.

AFTER THAT, WE'RE GOING TO SEE WHATEVER ELSE WE CAN COVER, AND THEN WE'LL START THE LEGISLATIVE PRIORITIES DISCUSSION NO EARLIER THAN 3 P.M.

BASED ON OUR SPEAKER, WHO'S ZOOMING IN, RICH FITZGERALD.

SO THAT'S SORT OF OUR ORDER AT THIS POINT, PROBABLY AFTER THIS BRIEFING, I'VE ASKED MY COMMITTEE MEMBERS, WHICH OF THE BRIEFING MEMORANDUMS WE DON'T HAVE QUESTIONS ON, AND I'LL PROBABLY RELEASE ANYONE WHO WE DON'T HAVE QUESTIONS ON THE BRIEFING, THEN, A RANDOM ITEMS G THROUGH N AFTER THE FIRST BRIEFING.

BUT I NOT EVERYONE'S GOT BACK TO ME YET.

ALL RIGHT. WITH THAT BEING SAID, ITEM A IS THE ECONOMICS OF LAND USE IN DALLAS COUNTY CREATED FOR METROTEX REALTORS.

I WON'T GIVE AWAY THE FARM ON THIS, BUT I WILL SAY OUR FRIENDS ASHLEY GENTRY AND MATTHEW CHURCH FROM METROTEX ARE HERE.

AND, THEY CAN TALK ABOUT THIS, STUDY THAT THEY FUNDED, FOR EVALUATION OF, OF OF LAND USE IN DALLAS COUNTY.

FROM MY PERSPECTIVE, I'M JUST GOING TO KIND OF BE LOOKING FOR HOW THIS TOOL COULD BE, APPLIED BY THE CITY, HOW WE COULD USE IT, FOR OURSELVES, ESPECIALLY SINCE IT'S ALREADY PAID FOR AND HOW IT COULD BE RELEVANT TO, DECISIONS THAT WE MAKE IN OUR OWN CITY PROPERTY, AND THEN ALSO IN OUR LAND USE EVALUATIONS FOR DALLAS AND AND ALL OF THE ABOVE.

SO, I WILL NOW TURN IT OVER TO ASHLEY GENTRY, WHO IS YOU'RE THE CHAIRMAN.

CHAIRWOMAN OF THE BOARD, RIGHT? OKAY. TAKE IT AWAY.

COUNCILMAN WEST, YOU ACTUALLY DID A GREAT JOB ALREADY INTRODUCING, WHAT, THE, STUDY WITH JOE MINICOZZI AND URBAN THREE, KIND OF CONCEPTUALLY WAS LOOKING AT THE BIGGEST THING FOR METRO ASSOCIATION OF REALTORS IS TO, CHAMPION OUR COMMUNITIES.

OR NOT JUST REALTORS.

WE WANT TO HELP THRIVING COMMUNITIES, WHETHER IT'S THROUGH REAL ESTATE, OR HELPING THOSE, THOSE CONSTITUENTS AND COMMUNITIES CONTINUE TO RISE.

SO JOE DID A PHENOMENAL JOB IN PARTNERING US WITH THIS INITIAL PHASE.

AND, I'M GOING TO GIVE IT TO MATTHEW FOR JUST A SECOND TO KIND OF TALK ABOUT THAT.

HE WAS A LITTLE BIT OF THE BRAIN TRUST BEHIND THAT WITH JOE.

AND THEN WE'LL INTRODUCE JOE.

THANK YOU ASHLEY.

SO THIS THIS PROJECT STARTED OVER A YEAR AND A HALF AGO.

AND, JOE'S GOING TO GET INTO A LOT OF THE NUTS AND BOLTS OF WHAT WE, DISCOVERED.

BUT THE ORIGINAL QUESTION, ACTUALLY CAME FROM THIS BUILDING THAT STARTED US DOWN THIS RABBIT HOLE, AND THAT WAS HOW MUCH MONTHLY RENT DOES A TENANT PAY TO RENT IN THE FORM OF THEIR PROPERTY TAX LIABILITY FOR THE PROPERTY OWNER? WELL, THAT QUESTION FOLLOWED BY A SERIES OF OTHER QUESTIONS AND DISCUSSIONS, BOTH INTERNALLY WITHIN OUR ORGANIZATION AND OUR OTHER STAKEHOLDERS FROM AN ECONOMIC STANDPOINT, LED US DOWN THIS PATH OF WE NEED TO LOOK AT NOT JUST THE CITY OF DALLAS, BUT DALLAS COUNTY AS A WHOLE, FROM FROM A LAND USE PERSPECTIVE AND A LAND VALUE, PER ACRE ASSESSMENT.

AND SO AS JOE IS GOING TO GET INTO, I WANT TO, FORESHADOW HIS.

BUT WHAT WE DID THAT'S, THAT'S UNIQUE TO THIS PROJECT IS WE NOT ONLY TOOK THE RESEARCH CAPABILITIES OF URBAN THREE, WE INCORPORATED THE TEXAS A&M REAL ESTATE CENTER AND ALL THE, PROPRIETARY MLS DATA AND COMBINED THE TWO DATA SETS TO MAKE THIS UNIQUE, COMPREHENSIVE RESEARCH PROJECT.

AND AGAIN, WHAT YOU'RE ABOUT TO SEE IS JUST THE TIP OF THE ICEBERG.

THERE IS THIS IS AN ONGOING PROJECT.

SO AS FAR AS COLLABORATION WORKING WITH THE CITY, HOW DO WE UTILIZE THIS? WELL, WE'VE NOW SET THE MODEL FOR WHICH THIS TYPE OF RESEARCH ANALYSIS CAN BE DONE.

AND SO EACH YEAR EACH, YOU KNOW, HOWEVER FREQUENT WE NEED TO GO BACK AND LOOK AND EVALUATE THIS TYPE OF INFORMATION, WE NOW HAVE THAT CAPABILITY TO DO SO. SO COUNCIL CHAIRMAN, I'M HAPPY TO TURN IT OVER TO YOU, TO TURN IT OVER TO JOE.

ALL RIGHT, LET'S GET JOE.

LOOKS LIKE HE'S TEED UP THERE.

TAKE IT AWAY. THANK YOU.

AND YOU ALL CAN SEE MY SCREEN RIGHT NOW.

[00:05:01]

AND I WANT TO GO THROUGH A LITTLE BIT OF WHY IS THIS IMPORTANT? OR HOW DO I FIND THAT THIS IS IMPORTANT? I ACTUALLY USED TO WORK FOR A REAL ESTATE DEVELOPER COMPANY HERE IN ASHEVILLE.

STARTED BY THIS GUY, JULIAN PRICE.

WE INVESTED IN BUILDINGS.

WE ALSO INVESTED IN BUSINESSES.

AND IT WAS ALL ABOUT HELPING OUR DOWNTOWN REVITALIZE.

WE HAD A DOWNTOWN THAT WAS JUST BOARDED UP.

AND WE'RE DOING THINGS LIKE MAKING SMALL APARTMENTS IN A BOOKSTORE OR SOMETHING LIKE THAT.

BUT OFTENTIMES WE FOUND OURSELVES CONSTANTLY COMMUNICATING WITH THE GENERAL PUBLIC ABOUT, WHY DOES IT MATTER TO DO DOWNTOWN REVITALIZATION AND REHAB? REALLY, IT'S THERE'S NO DIFFERENCE.

THERE'S A LITTLE BIT OF A DIFFERENCE BETWEEN GOVERNMENT AND BUSINESS.

BUT IF YOU LOOK UP THE WORD INCORPORATE, IT SAYS TO CREATE A COMPANY, A CITY OR OTHER ORGANIZATION AS A LEGAL CORPORATION.

SO MY LITTLE CITY OF ASHEVILLE, NORTH CAROLINA, IS, IS IS WORTH $14 BILLION.

MY CITY IS INCORPORATED.

MY COUNTY IS INCORPORATED.

MY STATE IS INCORPORATED.

IN 2016 JOE BIDEN SAID THIS WHEN HE WAS VICE PRESIDENT ON THE STEPHEN COLBERT SHOW.

THE UNITED STATES IS THE LARGEST CORPORATION IN THE WORLD.

SO SO WE HAVE TO UNDERSTAND THIS, THIS COMMODITY OR HOW WE OPERATE.

SO MY CITY AT 14 BILLION IS SEVEN TIMES THE VALUE OF TED TURNER.

SO DOES TED TURNER JUST LOOK AT FACEBOOK OF COURSE NOT.

WE WANT TO UNDERSTAND THE ECONOMICS.

WHAT'S GOING ON IN THIS. HE WANTS TO LOOK AT WHAT'S GOING ON IN CNN WITH [INAUDIBLE] VISUALIZATION AND THE COUNTS OF WHAT'S GOING ON.

SO MY CITY IS A FINITE BOUNDARY OF LAND WE CAN'T ANNEX IN NORTH CAROLINA.

SO THE ACRES THAT WE HAVE ARE THE ACRES THAT WE HAVE.

THOSE ARE THE UNITS AVAILABLE.

AND IF YOU TALK TO A FARMER, A FARMER IS ALWAYS TALKING ABOUT ECONOMICS AND LAND USE.

WHAT'S THE ACRE [INAUDIBLE] ACRE WATER PER ACRE.

SO THIS IS ONE OF THE BUILDINGS WE REHABBED.

GROUND FLOOR RETAIL, SECOND FLOOR OFFICE, UPPER STORY RESIDENTIAL.

THE CITY INVESTED IN THE STREETSCAPE.

SO THANK YOU CITY FOR THE GARBAGE CAN, THE BIKE RACK, TWO BENCHES AND A STREET TREE.

AND PEOPLE ACCUSED US OF BEING SUBSIDIZED AND I WAS LIKE, WELL, HOLD ON A MINUTE.

WE TOOK IT FROM $300,000 OF TAXABLE VALUE TO $11 MILLION.

THAT'S A 3,500% INCREASE IN TAXES.

DO YOU HAVE A 401 K PLAN THAT GROWS BY 3,500%? GO OUT AND BUY 3,500% MORE BIKE RACKS.

THEY DON'T CARE. AND IT'S JUST THIS KIND OF MISNOMER OF HOW WE LOOK AT REAL ESTATE.

WE DON'T UNDERSTAND PRODUCTIVITY.

ANOTHER PUSHBACK THAT I GOT HERE IN ASHEVILLE IS THEY WOULD SAY, HEY JOE, THAT'S $11 MILLION.

OUR WALMART IS $20 MILLION.

IT'S LIKE, ALL RIGHT, WELL, THAT WALMART TOOK 34 ACRES OF MY FARM TO MAKE HAPPEN VERSUS MY BUILDING AT 2.2 ACRES.

RIGHT. SO IF YOU JUST LOOK AT GROSS REAL ESTATE VALUE, YOU'RE MISSING EFFICIENCY.

YOU'RE YOU'RE YOU'RE MISSING THE PRODUCTIVITY.

SO OUR BUILDING IS 100 TIMES MORE PRODUCTIVE AND PROPERTY TAXES DOUBLE THE RETAIL SALES.

WHO WOULD HAVE THOUGHT THAT A FURNITURE STORE, A TATTOO SHOP AND A BEAUTY SALON IS DOUBLE THE PRODUCTIVITY OF A WALMART? BUT IT IS. WE OBVIOUSLY HAVE MORE RESIDENTS PER ACRE, MORE JOBS.

SO THIS IS THE SIMPLE LANGUAGE THAT WE ENCOURAGE TO LOOK AT REAL ESTATE IS LOOK AT IT ON A PER ACRE BASIS.

I WANT YOU TO REALIZE THIS ISN'T COMPLEX MATH HERE.

WE'VE JUST GOTTEN OURSELVES INTO A LANGUAGE WITHOUT UNDERSTANDING EFFICIENCY.

NOW IMAGINE IF I WERE TO SAY MY FORD F-150 GOT 650 MILES PER TANK.

AND THIS IS HOW WE TALKED ABOUT CARS.

YOU'D IMMEDIATELY UNDERSTAND HOW WEIRD THIS IS.

WE SAY WE DON'T SAY PER PER TANK, WE SAY PER GALLON, AND WE SHOULD ALL BE DRIVING BMW [INAUDIBLE] AT 70 MILES PER GALLON.

WE UNDERSTAND THE EFFICIENCY OF A GALLON OF GAS.

WE SHOULD UNDERSTAND THE EFFICIENCY OF AN ACRE OF LAND.

SO WE'VE DONE THIS 40 DIFFERENT STATES NOW, 42 DIFFERENT STATES FOR EVERY DOLLAR OF TAXES SOMEBODY IS PAYING IN SINGLE FAMILY COUNTY, SINGLE FAMILY TAXES TO THE COUNTY, THEIR BROTHER OR SISTER IN THE PRIME CITY IS PAYING ABOUT FIVE TIMES THAT TO THE SAME COUNTY IN COUNTY TAXES.

WE'RE NOT TALKING ABOUT CITY TAXES.

HERE'S THE WALMART.

THERE'S THE MALL. THIS IS A TWO STORY BUILDING ON MAIN STREET, THREE STORY BUILDING AND SIX STORY BUILDING.

I'M NOT. THIS ISN'T SKYSCRAPERS.

THIS IS ALL, MIDDLE OF THE ROAD STUFF.

THIS IS TRUE IN DENTON AS IT IS IN DRIGGS, IDAHO AS IT IS IN DALLAS.

AS YOU STACK STORIES, YOU'RE STACKING YOUR POTENCY.

SO I WOULD ARGUE PEOPLE DON'T SEE IT BECAUSE WE DON'T VISUALIZE IT IN A WAY THAT PEOPLE CAN SEE IT.

SO IF I COULD SHOW YOU YOUR BRAIN WITH YOUR CREATIVE THOUGHT PROCESS IN GREEN VERSUS YOUR BRAIN STEM ACTIVITY IN BLUE, CAN I DO A MODEL? SO WHEN I WAS ON OUR DOWNTOWN ASSOCIATION HERE, WE GOT IN A FIGHT.

WELL, WE DIDN'T REALLY START A FIGHT.

IT WAS THERE. OUR STATE REPRESENTATIVE CALLED MY CITY A CESSPOOL OF SIN HERE IN ASHEVILLE.

THE POLITICS IN NORTH CAROLINA ARE A LITTLE WEIRD, BUT, THIS IS A MAP OF OF OUR COUNTY FROM EVALUATION STANDPOINT.

GRAY IS NONTAXABLE.

WE HAVE TWO BIG PARKS, MOUNT MITCHELL AND MOUNT PISGAH MOUNTAIN GREEN IS LOW VALUE.

PURPLE IS HIGH VALUE THAT YOU HAVE THE LOW VALUE UP HERE.

THIS IS BIG PURPLE SPLOTCHES.

THE BILTMORE ESTATE, THAT ONE PROPERTY IS WORTH $100 MILLION, WHICH IS COOL.

THAT'S A VERY VALUABLE HOUSE.

IT'S ALSO AMERICA'S LARGEST HOUSE.

HOW MANY PEOPLE HAVE 180,000 SQUARE FOOT HOUSE SITTING ON 8,000 ACRES OF LAND? SO THAT'S LIKE HAVING THE BIGGEST GAS TANK.

SO RATHER THAN TOTAL VALUE, HERE'S VALUE PER ACRE.

AND HERE IT IS IN 3D.

SO WHEN I TALK TO FOLKS IN MY REGION ABOUT OUR CITY'S POTENCY INSIDE MY COUNTY, I SHOW THEM THIS MODEL AND I ASK THEM, WHAT'S THAT BIG PURPLE MOUNTAIN IN THE MIDDLE OF THE CITY, IN THE MIDDLE OF THE COUNTY, AND THEY SAY, THAT'S DOWNTOWN ASHEVILLE.

I'M LIKE, YEAH, THAT'S THE PRODUCTIVITY COUNTY, THE COUNTY TAXES THAT COME OUT OF MY DOWNTOWN.

[00:10:05]

SO RATHER THAN HATE ON US, LET'S SEE THE INFORMATION TOGETHER AND HAVE A SHARED CONVERSATION.

SO WE WERE ASKED TO LOOK AT DALLAS, THE MAIN PART OF THE PROJECT.

THERE'S ACTUALLY TWO PRESENTATIONS THAT MATTHEW HAS THAT ARE ALL VIDEO RECORDED.

THE FIRST HALF HAS TO DEAL WITH THE EQUITY OF ASSESSMENT.

THIS GOES BACK TO AN ARTICLE THAT CAME OUT IN THE NEW YORK TIMES.

IT ACTUALLY DOES A GREAT, GREAT, EXPLANATION OF HOW, LOWER VALUED HOUSES TEND TO BE OVERTAXED, OVERVALUED, OR OVER ASSESSED.

HIGHER VALUED HOUSES TEND TO BE UNDERVALUED.

AND THERE ARE THESE CHARTS THAT ARE OF SALES RATIOS.

BUT LET'S TAKE A LOOK AT CHICAGO HERE.

THE BOTTOM 10% THIS IS HOW THEY'RE BEING ASSESSED.

AND AT THE TOP 10% THIS IS HOW THEY'RE BEING ASSESSED.

THIS SHOULD IF IT'S TRUE UNIFORM TAXATION.

THIS SHOULD BE A FLAT LINE ACROSS THE MODEL WHICH IS ACTUALLY WHAT'S INSIDE YOUR, YOUR, CONSTITUTION FOR YOUR STATE AS WELL, UNIFORM TAXATION.

SO WE MAY ALL BE PAYING THE SAME MILLAGE RATE, BUT IS THAT WHAT WE'RE SETTING THAT MILLAGE RATE ON TOP OF IS THAT LEVEL.

SO THESE ARE YOUR STATE LAWS, YOUR TAXABLE VALUES OR MARKET VALUE.

NOW THE QUIRK IN TAXES IS YOU'RE A NON DISCLOSURE STATE.

SO IT'S IT'S AMAZING I MEAN THIS IS THE IT'S I DON'T WANT TO UNDERSTATE HOW INCREDIBLE THIS IS.

THIS IS THE FIRST OF ITS KIND WHERE THE REALTORS STEPPED IN WITH THE MLS DATA AND ALLOWED US TO TO ANALYZE WHAT'S GOING ON WITH WITH THE WITH THE VALUATION IN YOUR, IN YOUR COMMUNITY SO YOUR COUNTY DOESN'T HAVE ACCESS TO WITH THE WITH THIS WITH THE REALTORS DO.

SO THIS IS A GREAT COOPERATIVE PARTNERSHIP OF AND WE HAVE SHARED THIS WITH THE APPRAISAL DISTRICT AS WELL.

BUT BASICALLY HERE'S A HOUSE THAT WAS APPRAISED FOR $190.

IT GOT IT SOLD FOR $150.

SO THIS IS ESSENTIALLY 27% OVER WHAT IT SHOULD BE.

AND AGAIN, IN DEFENSE OF THE ASSESSORS, THEY DON'T KNOW WHAT THE DATA IS.

SO BUT THIS IS WHERE IT FALLS ON THE CURVE.

YOU FIND SOME HOUSES THAT ARE HITTING IT RIGHT.

SO THIS IS A ONE RATIO WHERE THE SALE PRICE MATCHES THE APPRAISED PRICE.

AND THEN YOU GET SOMETHING LIKE THIS WHERE IT'S IT'S BASICALLY ASSESSED AT ABOUT 50% OF WHAT IT'S WHAT IT SOLD FOR.

THAT'S WHAT'S GOING ON IN YOUR MARKETPLACE.

YOU HAVE OVER ASSESSED UNDER ASSESSED AND RIGHT ASSESSED.

SO THINK OF IT THE THREE PORCHES, IF YOU WILL, TAKING YOUR WHOLE HOUSING STOCK COUNTYWIDE AND BREAKING IT INTO 10% BUCKETS.

THIS IS THE EASIEST WAY TO DO THE ANALYSIS OR TO FIND, FIND THE PARITY IN THE SYSTEM THAT EVERYBODY, EVERYBODY'S AVERAGE SHOULD BE A STRAIGHT LINE THAT'S UNIFORM.

WHAT'S GOING ON IN DALLAS COUNTY IS SOMETHING LIKE THIS.

SO BASICALLY THERE'S THE UNIFORM AVERAGE.

AND HERE YOU HAVE SOME FOLKS THAT ARE OVER ASSESSED, RIGHT ASSESSED AND UNDER ASSESSED.

AGAIN, I'M NOT GOING TO BELABOR THIS.

THIS IS INSIDE. WE HAVE A WHOLE HOUR LONG VIDEO THAT GOES WITH THIS.

WE LOOKED AT ALL THE WAY BACK TO 2008.

YOUR YOUR APPRAISAL DISTRICT HAS GOTTEN A LOT BETTER SO THAT THAT REASSESSING EVERY YEAR ACTUALLY GIVES YOU BETTER INFORMATION.

AND IT WAS WILDLY OFF COMING OFF THE HEELS OF THE RECESSION ESSENTIALLY BACK IN 2013.

SO AS A BYPRODUCT OF THAT, WE ALSO BUILT YOUR MODEL FOR THE COUNTY.

SO HERE'S YOUR TOTAL VALUE OR THINK MILES PER TANK.

YOU CAN SEE THE HIGHWAY IS REAL HOT.

BIG SUPER LARGE PARCELS SUPER VALUABLE.

AGAIN THIS IS TOTAL TAXABLE VALUE.

HERE'S HERE'S TAXABLE VALUE PER ACRE.

NOW YOU SEE THE HEAT SHIFT TO THE CENTER OF DOWNTOWN.

HERE IT IS IN 3D.

SO THIS IS YOUR COUNTY PRODUCTIVITY OF WHICH YOU ARE A SHAREHOLDER INSIDE THAT COUNTY YOU'RE YOUR COUNTY TAXPAYERS AS WELL.

THESE ARE THE PRODUCERS.

JUST SOME HIGHLIGHTS. NOW REMEMBER WE DID THIS PRESENTATION FOR THE WHOLE METROTEX REGION.

SO WE'RE ALSO TALKING OUTSIDE OF DALLAS.

BUT THIS IS JUST THE DALLAS MODEL.

SO THIS IS YOUR PRODUCTIVITY.

WHEN WE TYPICALLY TALK TO FOLKS WE'RE LIKE WE'LL FIND OUT WHAT'S WORKING FOR YOU.

CLEARLY YOU'RE NOT GOING TO DO DOWNTOWN IN OTHER PLACES, BUT YOU MIGHT HAVE SOME HIGH PERFORMERS ACROSS THE RIVER OVER HERE AT, AT THE WHARF THAT YOU COULD LEARN FROM AND REPLICATE INSIDE THE REGION, INSIDE YOUR NEIGHBORHOODS, TO GROW THOSE AREAS UP.

AND WE'RE NOT TALKING SKYSCRAPERS HERE.

AND THEN AGAIN, YOUR COUSINS OUTSIDE THE CITY LIMITS, THEY CAN LEARN FROM FROM Y'ALL AS WELL.

GARLAND COULD GROW UP AS DOWNTOWN A LITTLE BIT FROM A TAXABLE NONTAXABLE STANDPOINT.

COUNTYWIDE, YOU'RE ABOUT 24% NONTAXABLE.

THERE'S NO MAGIC NUMBER HERE.

WE JUST WENT AHEAD AND RAN THE NUMBER.

SO YOU ALL HAVE IT A TYPICAL COUNTY, SOMEWHERE BETWEEN 20 AND 30%, DEPENDING ON, WHETHER OR NOT YOU HAVE MOUNTAINS OR ESTUARIES OR SOMETHING LIKE THAT.

YOU CAN CLEARLY SEE YOUR RIVER GOING THROUGH TOWN.

AND THEN WHEN YOU LOOK AT THE CITY LIMITS, YOU'RE ABOUT 30%.

NONTAXABLE. AGAIN, THIS IS NOTHING SURPRISING.

IT'S PRETTY AVERAGE FOR CITIES WHEN WE LOOK AT THEM.

NOW, THE THING TO BE MINDFUL OF, AS I SAID, DALLAS IS A SHAREHOLDER PARTNER INSIDE THE CORPORATION OF OF DALLAS COUNTY.

SO THIS IS YOUR FOOTPRINT.

YOU TAKE UP ABOUT, 34% OF THE COUNTY'S AREA.

AS WHAT YOU PAY IN COUNTY TAXES, HOWEVER, IS ABOUT 50%.

SO AS A RATIO OF PHYSICAL FOOTPRINT TO FINANCIAL FOOTPRINT, THAT RATIO IS A ONE TO, LET'S CALL IT A 1.5 RATIO OF PRODUCTIVITY.

[00:15:08]

NOW TO THINK OF JUST WITHIN YOURSELF, YOUR DOWNTOWN IS A LITTLE PIECE OF YOUR CITY'S PORTFOLIO.

IT TAKES UP 0.3% OF THE CITY'S LAND AREA.

IT'S PRODUCING ABOUT 5% OF THE CITY'S TAXES.

THAT'S A 1 TO 16 RATIO OF PRODUCTIVITY.

THAT'S ACTUALLY REALLY GOOD.

NOW YOUR DOWNTOWN HAS ROOM FOR IMPROVEMENT.

THERE'S A LOT OF SURFACE PARKING LOTS AND LEFTOVER SPACE, BUT THIS IS SHOWING YOU IT'S FERTILE TERRITORY FOR GROWING YOUR PRODUCTIVITY IN YOUR COMMUNITY.

BUT LET'S NOT FORGET THAT THE DOWNTOWN IS A SHAREHOLDER IN THE COUNTY AS WELL.

SO THIS IS THE FOOTPRINT OF THE DOWNTOWN IN THE COUNTY, 0.1%.

IT'S PRODUCING ABOUT 2.4% OF THE COUNTY'S PROPERTY TAXES.

THAT'S AN AMAZING 1 TO 24 RATIO OF PRODUCTIVITY.

SO JUST A SIMPLE WAY OF LOOKING AT THIS.

WHAT'S GOOD FOR THE DOWNTOWN IS GREAT FOR THE CITY, BUT IT'S UNBELIEVABLE FOR COUNTY PRODUCTION BECAUSE WHAT IS THE COUNTY PUT BACK INTO THE DOWNTOWN? DO THEY BUILD A DOG PARK OR A SIDEWALK? I DON'T KNOW, YOU KNOW, IT'S JUST THINK ABOUT THAT AS YOU'RE ALL IN IT TOGETHER AND YOU ALL REAP THE REWARDS TOGETHER AS WELL.

THAT'S LOOKING AT THE MODEL.

WE'VE ALSO GOT THIS.

THIS IS JUST SEEING THE BUILDINGS.

IT'S SORT OF LIKE THE WINDSHIELD VIEW.

EVERYBODY'S GOT A WALMART.

SO WE ALWAYS GRAB EVERYBODY'S WALMART'S HERE'S HERE'S YOURS COUNTYWIDE.

YOU'VE GOT A BUNCH OF THEM.

BUT ON AVERAGE YOUR WALMART'S ARE PULLING ABOUT $600,000 OF VALUE PER ACRE.

I'M GOING TO GO AHEAD AND LEAVE THAT ON THE SLIDE GOING FORWARD.

LET'S JUST USE THIS AS A CONTROL OR LIKE A BIG, BIG MAC INDEX.

YOU KNOW, EVERYBODY'S GOT A WALMART.

SO FOR RESIDENTIAL SEE THE WALMART DOWN HERE AT $600,000.

COUNTYWIDE YOUR SINGLE FAMILY RESIDENTIAL IS ABOUT A MILLION PER ACRE.

SO A LITTLE BIT OVER A WALMART.

WHEN YOU GET INTO DUPLEXES, YOU CAN KIND OF SEE IT'S A LITTLE BIT ALL OVER THE PLACE, FROM $400,000 AN ACRE OVER HERE TO $22 MILLION AN ACRE FOR THIS ONE RIGHT THERE.

THAT'S RIDICULOUSLY PRODUCTIVE.

SO THAT MISSING MIDDLE OR FILLING IN WITH A DUPLEXES, YOU'RE ESSENTIALLY IT'S KIND OF OBVIOUS IT'S DOUBLE SINGLE FAMILY RESIDENTIAL.

BUT YOU CAN SEE THAT NOT ALL NOT ALL ARE CREATED EQUAL.

THIS ONE IN THE MIDDLE RIGHT HERE ON 8TH STREET IS $7 MILLION.

AND THAT'S NOTHING. AND IT'S NO SKYSCRAPER.

SO THIS IS HOW YOU CAN GROW YOUR WEALTH JUST BY THICKENING IT UP A LITTLE BIT.

MULTIFAMILY, IS SORT OF [INAUDIBLE] THE APARTMENTS.

THEY'RE A LITTLE BIT ALL OVER THE PLACE, BUT YOU CAN SEE THESE AT $800,000 AGAIN, THIS IS MORE PRODUCTIVE THAN A WALMART.

THIS IS ABOUT, ALMOST THREE TIMES A WALMART.

THIS ONE'S KILLING IT AT $26 MILLION AN ACRE.

IT ADVANCED AT BISHOP UNION.

AND THEN, OF COURSE, YOU KNOW, TALL BUILDINGS ARE GOING TO BE REALLY PRODUCTIVE AT $120 MILLION PER ACRE.

BUT ON AVERAGE, APARTMENTS ARE PULLING ABOUT $3 MILLION AN ACRE ACROSS THE WHOLE, COUNTY.

AND THEN YOU ALSO HAVE THESE, TOWNHOUSES, WHICH ARE GREAT, $1.6 MILLION ALL THE WAY UP TO $26 MILLION AN ACRE OVER HERE AT WORTHINGTON STREET.

SO THESE ARE, AGAIN, GREAT LESSONS AS YOU START TO FIND WAYS TO FILL IN VACANT LAND.

THIS IS A WAY TO HARVEST WEALTH, AND HARVEST YOUR PRODUCTIVITY.

A LOT LESS STREET FRONTAGE PER HOUSING UNIT HERE THAN IN SINGLE FAMILY DETACHED.

BUT ON AVERAGE, YOU'RE LOOKING AT $4 MILLION AN ACRE.

AND THEN THE CONDOS COME IN ALL SORTS OF SHAPES AND SIZES FROM, SORT OF GARDEN STYLE ON THE UPPER LEFT TO THE MUSEUM TOWER CONDOS AT $160 MILLION AN ACRE, AND EVERYTHING KIND OF IN BETWEEN.

BUT ON AVERAGE, YOUR CONDOS ARE ABOUT $5.2 MILLION AN ACRE.

AND THEN THIS IS JUST A BAR CHART SHOWING HOW THEY STACK UP.

OFTENTIMES PEOPLE HAVE A, THEY HAVE A BIAS TOWARD SINGLE FAMILY HOUSING BECAUSE MOST OF US LIVE IN SINGLE FAMILY HOUSING.

WE KNOW OUR TAX BILL.

WE DON'T NECESSARILY KNOW THE TAX BILLS OF DUPLEXES, APARTMENTS, TOWNHOUSES OR, CONDOMINIUMS. SO YOU CAN SEE HOW IT STACKS UP.

A TOWNHOUSE IS ABOUT FOUR TIMES SINGLE FAMILY RESIDENTIAL IN TAX PRODUCTIVITY.

NOW YOUR COMMERCIAL AGAIN, BIG BOXES.

HERE'S A LESSON. WHEN YOU HAVE LARGE SURFACE PARKING LOTS, IT DEVALUES THE SITE.

SO THAT'S WHY THIS IS AT $400,000 AN ACRE.

THIS IS $500,000 AN ACRE.

AND YOU CAN NOTICE IT'S LIKE THE COSTCO IS AT $1.1 MILLION BECAUSE COSTCO'S USUALLY HAVE LESS PARKING THAN, LET'S SAY A LOWE'S, IT'S $600,000.

SO THERE'S THIS KIND OF PERVERSE, ECONOMIC CALAMITY THAT HAPPENS WHEN YOU REQUIRE ALL OF THAT SURFACE PARKING.

YOU'RE ESSENTIALLY DILUTING THE VALUE OF THE LOT INSIDE THAT, MACARTHUR PARK, PRESTON VILLAGE AGAIN, YOU CAN SEE THE LESSON HERE OF A TIGHTER STRIP MALL SITE AT ABOUT $6 MILLION AN ACRE VERSUS $1.3 MILLION AN ACRE FOR THIS ONE WITH THAT BIG SEA OF PARKING, THE MALLS BETWEEN $500,000 AND $9 MILLION FOR NORTH PARK MALL.

AND NOW WE GET INTO THIS COMMERCIAL PRODUCT AND CHECK THIS OUT.

SO THE MALL WAS PEAKING AT $9 MILLION AN ACRE FOR THE BEST MALL IN THE COUNTY.

AND NOW YOU'RE SEEING JUST AT THIS, IN COPPELL, THE ELECTRIC REPAIR SHOP HERE AT $8 MILLION.

SO THAT'S ALMOST AS PRODUCTIVE AS THE MOST PRODUCTIVE MALL.

[00:20:01]

LAS COLINAS, $12 MILLION $14 MILLION.

SO THIS HERE'S A SKYSCRAPER AT $14 MILLION, WHICH IS JUST A HAIR ABOVE THE PRODUCTIVITY OF THIS THING.

SO, AGAIN, DON'T BE FOOLED THAT YOU JUST HAVE TO HAVE A TALL BUILDING TO HAVE PRODUCTIVITY.

LOOK AT HATTIE B'S AT $19 MILLION AN ACRE FOR A ONE STORY BUILDING.

YOU KNOW, IT'S JUST THAT'S THE VALUE OF BEING INSIDE DALLAS, CLOSE TO THE DOWNTOWN.

AND THE VALUE OF THE DEEP ELLUM NEIGHBORHOOD IS SHOWING UP IN THAT BUILDING.

AND THEN HERE'S SOME OTHER DALLAS EXAMPLES.

$23 MILLION AN ACRE FOR THIS BUILDING.

THE BISHOP NORTH MIXED USE AREA IS PULLING ABOUT $23 MILLION AS WELL.

AND AGAIN, SMALL LESSONS HERE.

AND HERE'S JUST LOOKING UP AT, UNIVERSITY PARK, A DENSER SHOPPING CENTERS COMING AT $21 MILLION, WHICH IS STILL LESS PRODUCTIVE THAN THIS LITTLE GUY RIGHT HERE AT $20 TO $30 MILLION AN ACRE.

MORE DEEP ELLUM EXAMPLES.

THIS IS A MIXED USE BUILDING AT $57 MILLION.

THE TEXAS CAPITAL BANK IN UPTOWN IS PULLING $75 MILLION AN ACRE.

AND THEN THESE ARE THE BIG KAHUNAS AT $200 MILLION FOR THIS ONE, AT 1900 PEARL.

SO THERE IS A LESSON HERE, THOUGH, IN THE LASTING VALUE OF THESE BUILDINGS THAT HAVE BEEN AROUND SINCE, SINCE THE 30S AND THE PRODUCTIVITY AND AGAIN, NOT BIG BUILDINGS, BUT HERE THEY ARE 100 YEARS LATER, STILL PRODUCING $11 MILLION AN ACRES.

SO BE AWARE OF THIS WEALTH THAT YOUR GREAT GRANDPARENTS HAVE LEFT YOU, IN YOUR COMMUNITY.

SO I'LL JUST GO AHEAD AND KIND OF JUMP TO THE CLOSE HERE.

THAT'S THE REVENUE SIDE.

WHILE WE'RE DOING THIS ANALYSIS.

YOU HAVE A LOT OF ROADS.

THIS IS STUFF YOU HAVE TO CARRY.

THE COUNTY HAS 192 MILES OF ROADS.

TXDOT HAS 3,000.

Y'ALL HAVE THE CITY HAVE 20 OR 20,000 MILES OF ROADS, WHICH IS ABOUT 84% OF THE ROAD FOOTPRINT IN THE ENTIRE COUNTY.

THAT'S A LOT OF ROADS.

SO I AS A DEVELOPER, WHEN I BUILD A ROAD AND GIVE IT TO YOU, IT'S YOUR LONG TERM MAINTENANCE AND YOUR CITIZENS NEED TO BE AWARE THAT THAT'S NOT CHEAP.

SORRY. IT'S, MY COMPUTER IS HANGING UP HERE.

SO THIS IS THE ROADS THAT THE STATE MAINTAINS.

THEY CAN MAKE IT HALFWAY TO OKLAHOMA CITY.

WHEN YOU LOOK AT THE COUNTY ROADS, IT CAN STRETCH UP TO SASKATOON, CANADA.

WHEN YOU LOOK AT WHAT YOU'RE CARRYING AS A CITY, IT GOES ALL THE WAY UP TO DEADHORSE, ALASKA.

MAKES IT ALL THE WAY THERE AND THEN TURNS AROUND AND COMES ALL THE WAY BACK TO DALLAS AND CONTINUES ON TO GALVESTON.

SO EVERY 50 YEARS, YOU HAVE TO REBUILD THAT ROAD ALL THE WAY TO DEADHORSE AND BACK, INSIDE YOUR PORTFOLIO.

SO JUST THIS NEEDS TO BE COMMUNICATED TO YOUR CITIZENS.

THEY NEED TO BE AWARE OF THIS.

AND ALSO, WHEN YOUR STATE DOES SOMETHING LIKE A TAX CAP, THE COST OF THAT ASPHALT DOESN'T DO THE SAME THING.

SO TWO YEARS AGO, ASPHALT WENT FROM A 280 INDEX TO A 360 INDEX.

SO WHAT THAT MEANS IS THAT IN THAT ONE YEAR, ASPHALT GREW AT 30%.

YOUR REVENUES DON'T DO THAT BECAUSE WE'VE CONSTRICTED IT WITH THE TAX CAPS AND OTHER THINGS.

SO THIS IS JUST THE BASIC ECONOMICS OF WHAT YOU HAVE.

SO JUST TO CLOSE, OUR RECOMMENDATION TO THE GROUP WAS GROW UP, NOT ONLY INSIDE DALLAS BUT OUTSIDE DALLAS.

FIND AREAS OF BUILDING GROWTH.

AND WHAT CAN YOUR COUSINS OUTSIDE OF YOUR CITY LIMITS LEARN FROM YOU IN DIFFERENT PLACES AROUND THE COUNTY? YOU'RE ALL IN IT TOGETHER.

THIS IS PUTTING YOU SIDE BY SIDE WITH SEATTLE.

YOU'RE ABOUT THE SAME METRO REGION, BUT NOTICE HOW SEATTLE HAS THE PRIME PART OF SEATTLE.

BUT THEY'RE COUSINS OF BELLEVUE, KIRKLAND, REDMOND, MERCER ISLAND.

YOU CAN SEE WHERE THEIR DOWNTOWNS ARE.

SO YOUR COUSINS NEED TO GROW UP A LITTLE BIT TOO.

SO THAT BURDEN OF CARRYING THE COUNTY ISN'T ALL ON DALLAS.

SMALL BUILDINGS HAVE A BIG IMPACT.

SOMETHING LIKE HATTIE B'S IS KILLING IT AT $19 MILLION AN ACRE VERSUS THE NORTH PARK MALL AT $9 MILLION AN ACRE.

SO LITTLE BUILDINGS CAN HAVE A BIG POTENCY.

THINK ABOUT THE LASTING VALUE OF THESE BUILDINGS THAT HAVE BEEN AROUND 100 YEARS, PRODUCING $36, $55, $120 MILLION AN ACRE TODAY, EVEN THOUGH THEY WERE BUILT 100 YEARS AGO.

THINGS LIKE THIS.

ALSO A LESSON THAT WE ALWAYS TELL PEOPLE IS MOST OF OUR GOVERNMENTS OPERATE WITH LANDLINE TECHNOLOGY, AND WE HAVE NEW WAYS OF SEEING THIS STUFF.

SO USE YOUR GIS DATA TO DO THIS STUFF.

LOOK AT THE VALUATION OF HOW THINGS HAPPEN IN YOUR COMMUNITY AND STUDY THESE MODELS.

AND JUST TO CLOSE, KNOW YOUR COST AND CONSEQUENCES.

Y'ALL ARE WORTH $154 BILLION AS A CORPORATION.

SO THE CITY OF DALLAS, YOU COULD LIQUIDATE YOURSELF AND BUY THE DALLAS COWBOYS.

THEY'RE ONLY $9 BILLION.

AND AND I CAN TELL YOU THAT I GUESS YOU CAN BUY ABOUT 17 COWBOYS IF YOU WANTED TO.

JERRY JONES KNOWS KNOWS DAK PRESCOTT'S TOWEL BILL.

THE CUPS IN OUR NIGHTCLUB ARE THREE ARE $0.07 A POP.

YOU BETTER KNOW THE COST OF THOSE ROADS.

AND YOUR CITIZENS NEED TO BE AWARE OF THAT TOO, BECAUSE YOU HAVE TO PAY FOR IT.

AND THAT'S BASICALLY THE WHOLE PRESENTATION.

THANK YOU. ALL RIGHT, COLLEAGUES, WE'VE ONLY GOT 15 MORE MINUTES OF JOE.

SO I'M GOING TO START OFF WITH A LIGHTNING ROUND FOR HIM.

AND THEN I THINK WE'VE GOT EVERYBODY ELSE LONGER THAN THAT.

I'LL JUST SAY, QUICKLY, I APPRECIATE HIM BEING HERE.

[00:25:03]

AND SO I'M GOING TO START OFF WITH HER ON QUESTIONS, EVEN THOUGH SHE'S NOT ON THE COMMITTEE, BUT THE, WHEN WE DO LAND USE EVALUATION IN THE CITY, WE LOOK AT FIRE ACCESS. WE LOOK AT HEIGHT AND SETBACK ENCROACHMENTS, WE LOOK AT TRAFFIC AND HOW IT'S GOING TO IMPACT NEIGHBORHOODS, ACCESS TO SCHOOLS.

AND NOW WE'RE STARTING TO LOOK AT ENVIRONMENTAL CONSIDERATIONS, BUT WE DON'T REALLY EVER TALK ABOUT WHAT THE FINANCIAL IMPACT IS TO THE CITY, EXCEPT JUST SORT OF GENERALLY.

AND I THINK THAT THIS, OPENED MY EYES TO US NEEDING TO DO A LITTLE BIT MORE OF THAT, YOU KNOW, AND JUST WEIGHING IT.

NOT THIS TRUMPING ANYTHING ELSE, NECESSARILY, BUT IF I BELIEVE WHAT HE SAID, LIKE WE OWE IT TO OUR CONSTITUENTS TO AT LEAST HAVE THE DISCUSSION.

SO I'LL START OFF WITH COUNCILWOMAN WILLIS.

I'LL JUST START WITH ONE QUESTION AND THANK YOU.

METROTEX FOR FUNDING THIS SO IT CAN BE SPECIFIC TO DALLAS AND DALLAS COUNTY.

SO WE HAVE THIS REAL ESTATE PORTFOLIO, AND WE MAY WANT TO DIVEST OURSELVES OF SOME OF THESE PROPERTIES TO FUND VARIOUS NEEDS THAT THE CITY HAS.

AND SO HOW WOULD YOU ENVISION OR HOW THE STAFF THINK THAT WE COULD USE A TOOL LIKE THIS TO HELP US GET AT THE FAIR MARKET VALUE, OR TO BETTER UNDERSTAND SOMETHING THAT HASN'T BEEN ON THE TAX ROLLS FOR YEARS OR.

I DON'T KNOW IF THAT IS I DON'T.

I CAN LOOK AT IT FROM A BROADER PERSPECTIVE.

I THINK WE DO HAVE TO AS YOU KNOW, CHAIRMAN WEST MENTIONED IT OUR LAND USE DECISIONS HAVE TO BE OR THESE ISSUES HAVE TO BE WEIGHED INTO OUR LAND USE DECISIONS AND THINKING ABOUT THE TRADE OFFS, WHAT DOES IT MEAN OF RELINQUISHING A CERTAIN PROPERTY IN A CERTAIN AREA VERSUS.

MAYBE DEVELOPING THAT OR REDEVELOPING THAT INTO SOMETHING ELSE.

AND WHAT WE COULD THINK ABOUT FROM A FUTURE PERSPECTIVE, I THINK THIS IS ALSO THE CRITICAL PIECE OF, AS WAS MENTIONED IN THE PRESENTATION, IS HOW OUR LAND USE DECISIONS IMPACT CURRENT INFRASTRUCTURE AND FUTURE INFRASTRUCTURE.

WE HAVEN'T BEEN TYING THOSE TWO ISSUES AS CLOSELY ENOUGH AS WE SHOULD AND THINKING ABOUT DEVELOPMENT PATTERNS MOVING FORWARD AND WHAT HOW THAT IS GOING TO IMPACT, YOU KNOW, PARTICULARLY PARTICULARLY OUR ROAD INFRASTRUCTURE MOVING FORWARD.

SO IT SOUNDS LIKE THIS NEEDS TO BE PURSUED WITH ANOTHER STAFF MEMBER TO GET THAT QUESTION ANSWERED.

YEAH. I MEAN, ANY, I GUESS WE COULD COME BACK TO THAT.

I WANT TO MAKE SURE WE GET JOE IF WE HAVE ANY QUESTIONS SPECIFICALLY FOR HIM, BECAUSE WE GOT 15 MORE MINUTES WITH HIM.

GO AHEAD. WELL, I WAS GOING TO SAY WE WE HAVE DONE ANALYZES LIKE THAT IN DEFENSE OF THE ASSESSORS.

WHAT KIND OF VALUE ARE THEY GOING TO PUT ON CITY HALL? IS CITY HALL GOING TO SELL TOMORROW.

YOU KNOW, MOST LIKELY NOT.

SO THEY'RE GOING TO PUT A NUMBER ON THERE BECAUSE THEY DO THAT ANYWAY.

BUT THEY ALSO KNOW THAT IT'S GOING TO THE EXEMPTION CODE IS GOING TO GO AHEAD AND ELIMINATE IT IN THE FUTURE.

WE TYPICALLY FIND THAT ASSESSORS UNDERVALUE, PUBLIC HOLDINGS BY, BY A FACTOR OF 4 TO 7.

IS THE SCALE OF WHAT THE OPPORTUNITY IS.

BUT BUT THE THING THAT I WOULD, I WOULD RECOMMEND IS DON'T LOOK AT IT AS WE COULD JUST GO OFF AND SELL IT YOU COULD, BUT YOU COULD ALSO HOLD IT AS A PORTFOLIO THAT HAS A LONG TERM RETURN FOR YOU.

ALL THAT YOU COULD ACTUALLY DO, GROUND LEASES OR OTHER FORMS OF COOPERATIVE DEVELOPMENT WHERE YOU'RE STILL MEETING PUBLIC BENEFITS OR PUBLIC GOALS.

BUT YOU'RE WORKING INSIDE THE PRIVATE SECTOR AND GETTING TAXATION OFF LAND THAT YOU OWN, BUT YOU JUST GET THAT BACK IN 75 YEARS OR 100 YEARS IF YOU WANT.

BUT THERE'S LOTS OF DIFFERENT WAYS TO HANDLE THAT IN SALT LAKE COUNTY.

SALT LAKE COUNTY IS WORTH $140 BILLION.

AND WE FOUND THEIR PUBLIC HOLDINGS ABOUT AND JUST A FRACTION OF THEM.

WE ONLY BROUGHT A CERTAIN POWDER IN $140 BILLION OF REAL ESTATE, $45 BILLION OF NEW OPPORTUNITY ON TOP OF IT.

THE GOVERNMENT FINANCE OFFICERS ASSOCIATION HAS A GREAT, DOCUMENT, THAT WE HELP THEM WITH THAT YOU CAN IT'S ALL PUBLICLY AVAILABLE.

I CAN SEND IT TO YOU, TO LOOK AT THIS STUFF.

THANK YOU ALL FOR BRINGING THIS.

IT'S, QUITE A DECK.

SO, JOE, MIKE, SINCE WE HAVE YOU FOR A FEW MINUTES.

BUT TELL ME WE'VE GOT A LOT OF INFORMATION IN HERE.

WHAT IS THE HEADLINE? AND SO AND THEN WHAT ARE THE THINGS THAT WE'RE SUPPOSED TO BE DOING? LIKE WHAT ARE THE QUICK WINS? AND I DON'T WANT TO USE THAT.

BUT BUT JUST KIND OF YOU COULD SUM IT UP LIKE, WHAT IS THE HEADLINE? WHAT SHOULD BE OUR NORTH STAR? WHAT SHOULD WE BE GUIDING US? WELL, THE, THE YOUR METROTEX REALTORS NOW HAVE THE MODEL.

[00:30:02]

IT'S CALLED A MAP PACKAGE, BUT IT'S BASICALLY A PHYSICAL MODEL THAT GOES TO YOU.

YOU CAN PLUG IT INTO YOUR ESRI SOFTWARE.

WE'D RECOMMEND THAT YOU LOOK AT IT, THAT YOU USE IT AS A TOOL TO FIND AREAS OF MAYBE LIKE A SUNKEN DEVELOPMENT IN AN AREA WHERE YOU REALLY START TO SEE THAT THERE'S A SPINE OF DEVELOPMENT HAPPENING.

IT'LL HELP YOU SEE WHERE THE UNDERPRODUCTION IS HAPPENING.

I WOULD START TO THINK ABOUT YOUR YOUR INVESTMENT, YOUR ROADS, THINK OF YOUR CITY AS I DON'T WANT TO CHEAPEN THIS ANALOGY, BUT, IT'S LIKE A TWO DRINK MINIMUM. ARE YOU AT LEAST GETTING THE REVENUE BACK IN TAXATION FOR YOUR INVESTMENT OF INFRASTRUCTURE TO THAT PARCEL? OR IF YOU'RE NOT, IF YOU'RE THAT'S A SUBSIDY, BUT YOU SHOULD BE CHOOSING THE SUBSIDY TO GO TOWARD IF YOU HAVE AFFORDABLE HOUSING NEEDS, IF YOU WANT TO CHOOSE TO SUBSIDIZE ARTISTS, I DON'T KNOW. IT'S YOUR CHOICE.

IT'S YOUR COMMUNITY.

BUT DON'T LEAK YOUR MONEY OUT.

IN DEVELOPMENT PATTERNS WHERE A DEVELOPER MAY BE EXPLOITING YOUR INFRASTRUCTURE BY UNDER BUILDING, DOES THAT MAKE SENSE? YEAH IT DOES [INAUDIBLE].

ALL RIGHT. ANY QUESTIONS FOR JOE SPECIFICALLY? I MAY. YEAH, I THINK.

OKAY. CHAIRWOMAN MENDELSOHN.

WELL, I WANT TO SAY FIRST, THANKS FOR THE INTERESTING PRESENTATION, BOTH THE DATA AND EVEN THE FORMAT, THE WAY YOU PRESENTED IT.

WE DON'T USUALLY GET SUCH, COLORFUL AND INTERESTING PRESENTATIONS.

SO I JUST WANT TO SAY THANK YOU FOR THAT BECAUSE IT'S ALSO LONG.

SO YOU'RE MAKING THE ARGUMENT FOR LAND PRODUCTIVITY AND THE TAXABLE VALUE PER ACRE.

AND THIS MAKES SENSE.

AND I THINK, YOU KNOW, SINCE WE ARE SO, INVOLVED WITH THE BUDGET AND, AND HOW THESE TAX DOLLARS ARE GENERATED AND SPENT, THIS SPEAKS TO US.

BUT THE PART THAT DOESN'T IS SORT OF, DENIGRATING A WALMART.

I'M NOT AT ALL GOING TO SUPPORT A WALMART.

I'M JUST GOING TO SAY I HAVE A LITTLE BIT OF A, BOYCOTT GOING ON MY OWN, BUT PEOPLE WANT A WALMART AND SINGLE FAMILY HOUSING.

PEOPLE WANT TO LIVE IN SINGLE FAMILY HOUSING.

AND IF THAT'S NOT OFFERED AS PART OF, A PROTECTED NEIGHBORHOOD TO HAVE SINGLE FAMILY HOUSING, THEY'RE GOING TO CHOOSE OUR NEIGHBORS, AS YOU SAY.

SURE. AND I'M WONDERING HOW THAT FITS INTO WHAT YOU'RE SHARING WITH US.

YEAH. IF YOU IF YOU SEE THE LONGER PRESENTATION, IF YOU WATCH THE VIDEO THAT I DID WITH THE WITH METROTEX I ACTUALLY TALK ABOUT MY RELATIONSHIP WITH WALMART.

WE'VE ACTUALLY DONE BENTONVILLE, ARKANSAS.

AND I JOKE, I'M LIKE, DON'T HATE THE PLAYER, HATE THE GAME, BUT YOU BETTER UNDERSTAND THE GAME.

SO I PRESENTED AT THE INTERNATIONAL ASSOCIATION OF TAX ASSESSING OFFICERS CONFERENCE.

I DON'T KNOW IF YOU HANG OUT WITH TAX ASSESSORS, BUT IF YOU CAN IMAGINE 3,000 OF THEM, IT MAKES IT MAKES A PLANNING CONFERENCE FEEL LIKE BURNING MAN.

IT WAS A SQUARES CONFERENCE I'VE EVER BEEN TO.

GREAT PEOPLE, BUT THE HEAD OF WALMART'S REAL ESTATE GOT UP AT EIGHT IN THE MORNING AND DID THIS AMAZING PRESENTATION ON HOW CHEAP WALMART'S ARE.

AND I'M JUST WATCHING THIS GO DOWN AND I'M LIKE, WELL, THIS IS BRILLIANT.

ONE MEETING, 3,000 ASSESSORS, HE'S GETTING HIS PROPERTY TAX BILL LOWERED BY PROVING HOW CHEAP HIS BUILDINGS ARE.

AGAIN, DON'T HATE THE PLAYER.

SO I WENT UP TO THE MICROPHONE AND I ASKED HIM, I SAID, MR. TERRELL, WHAT'S THE USEFUL LIFE OF ONE OF YOUR BUILDINGS? AND HE GOES 15, 20 YEARS.

WE DESIGNED THE BUILDING TO DEPRECIATE AS FAST AS POSSIBLE.

WE'LL BUILD ANOTHER BUILDING TO DEPRECIATE IT DOWN AGAIN.

SO I DON'T CARE THAT YOU CHOOSE A WALMART.

I JUST NEED YOU TO KNOW THAT IT'S A 15 YEAR INVESTMENT IN YOUR CORPORATION, AND IT'S GOING TO ALL DOWNHILL AFTER THE FIRST DAY IT OPENS ITS DOOR.

IF IT'S GOOD FOR YOU TO SUBSIDIZE THAT THAT WAY SO THAT YOU CAN GET TOILET PAPER AT $0.10 A ROLL CHEAPER, AWESOME.

JUST MAKE SURE YOU'RE CONSCIOUS TO THAT.

YOU KNOW, IT'S LIKE IT'S GOOD.

IT'S GOOD FOR FOLKS TO ASK FOR THINGS.

BUT ALSO WE NEED TO BE WE NEED TO BE HUMBLE ENOUGH TO SAY, WELL, WHAT'S IT COST FOR THAT EXCHANGE? YOU KNOW, AND I UNDERSTAND THERE'S POLITICS IN THIS.

SO I WOULD I WOULD ARGUE THAT WE DON'T SUBSIDIZE WALMART, ALTHOUGH WE HAVE SUBSIDIZED COSTCO BEFORE ANY OF US WERE ELECTED.

AND BUT WHEN SOMEBODY OWNS THE LAND, IT'S THEIR CHOICE ON THE DENSITY THEY WISH TO BUILD.

AND SO, AGAIN, MY ISSUE WITH WALMART IS NOT ABOUT THE EXCESSIVE PARKING LOT OR THE QUALITY OF THE BUILDING.

IT'S ABOUT LABOR PRACTICES.

BUT, BUT WHEN A WALMART CLOSES IN DALLAS, WE GET EMAILS SAYING, WHERE AM I GOING TO SHOP? THIS IS A PLACE I NEED TO GO TO.

I COUNT ON WALMART, AND I THINK THERE'S A LOT OF PLACES IN DALLAS THAT WOULD LIKE TO HAVE A WALMART.

SO FRANKLY, I THINK THERE'S ALSO CRIME ISSUES.

I MEAN, I'M NOT DEFENDING WALMART, BUT I AM GOING TO SAY THAT WE SHOULD HAVE THE FULL ARRAY BOTH OF HOUSING AND RETAIL AND EVEN DENSITY.

[00:35:02]

SO I WANT TO SAY THANK YOU FOR THE FOR THE TIMES AND YOUR PRESENTATION YOU ADDED IN COLLIN AND DENTON COUNTY.

I REALLY DO APPRECIATE IT.

CLEARLY THERE WAS AN EFFORT TO DO THAT.

THANK YOU METROTEX.

BUT I PURPOSELY DON'T LIVE CLOSE TO DOWNTOWN.

I'M NOT INTERESTED IN THAT.

AND I WOULD SAY THE PEOPLE IN MY AREA NOW, IF YOU LOOK AT IT, IT'S PRETTY DENSE UP IN DISTRICT 12, RIGHT? IT'S REALLY DENSE ACTUALLY.

SO I JUST WANT TO I JUST WAS WONDERING IF YOU COULD SHARE WITH US YOUR THOUGHTS ON HAVING THAT FULL CONTINUUM OF KINDS OF HOUSING AND COMMERCIAL. YEAH.

WELL, LIKE IN DISTRICT 12, COULD, COULD YOU GET SOME TOWNHOUSES? I'M NOT SAYING LIKE BUILD A SKYSCRAPER THERE.

IT'S JUST. BUT WE DO. OKAY.

THAT'S GREAT. YOU KNOW, THE THE AVERAGE WALMART CONSUMES MORE MORE IN POLICE SERVICES THAN IT PAYS IN PROPERTY TAXES.

IS THAT IS THAT SOMETHING YOU WANT TO CONTINUE TO DO? YOU KNOW, IT'S JUST RUN THE NUMBERS AND MAKE SURE THAT IT'S WORKING OUT.

YOU KNOW, IT'S JUST AGAIN, THIS I'M NOT MAKING JUDGMENTS.

IT'S YOUR COMMUNITY. [INAUDIBLE] WE'RE JUST GOING TO PRODUCE THE INFORMATION SO YOU CAN SEE IT.

OKAY. WELL, I APPRECIATE YOU ACTUALLY HAD, DISTRICT 12, DUPLEX.

AND WE CERTAINLY HAVE CONDOS, TOWNHOMES AND DUPLEXES AND DISTRICT 12.

THANK YOU. YEAH.

THANK YOU. AND IF YOU COULD LEAVE US WITH A PARTING COMMENT, JOE, I THINK, THESE ARE ALL GREAT QUESTIONS.

I THINK THE VICE CHAIRS QUESTION ABOUT WHAT'S OUR NORTH STAR FROM HERE IS KIND OF WHAT I'M LEFT WITH.

LIKE, HOW WOULD YOU ENCOURAGE CITY STAFF AND US AS THE POLICY MAKERS TO TAKE THIS INFORMATION TO THE NEXT LEVEL? I MEAN, GENERALLY OR SPECIFIC.

HOWEVER, YOU CAN DO IT WELL, GENERALLY GET THE MODEL.

IT'S JUST START PLAYING WITH IT.

I WOULD LOOK AT THE ANALYZES OF I MEAN, WE HAVE WE HAVE LOTS, WATCH THE VIDEOS, THAT METROTEX HAS.

I WOULD START GETTING INTO THE COSTING SIDE AND JUST BEING HONEST ABOUT WHERE WHERE ARE WE LEAKING OUR MONEY? HOW MANY TRAFFIC LIGHTS DOES THAT DOES THAT STRIP MALL NEED AND WHAT'S IT COSTING.

AND JUST THINK THROUGH THE, THE THE LEAKAGE.

IT MAY NOT BE THE WALMART, BUT THE DEAD STRIP MALL IS NOT GOING TO BE AWESOME.

AND IT'S JUST BE AWARE THAT YOU GOT TO PICK UP THE COST OF THAT ROAD.

THE ROADS ARE ARE THE KILLERS.

BECAUSE INSIDE YOUR BUDGET, YOU TYPICALLY DON'T LOOK AT THE REPLACEMENT COST OF YOUR ROAD.

YOU JUST GO OUT AND BOND OUT AND GET MORE MONEY.

BUT BUT IF YOU START SQUIRRELING IN ANY BUSINESS, I'M GOING TO HAVE A RESERVE ACCOUNT FOR MY AIR CONDITIONERS.

I KNOW THAT MY AIR CONDITIONERS ARE GOING TO LAST 20 YEARS, SO I HAVE TO SQUIRREL AWAY SOME REVENUE BECAUSE 20 YEARS FROM NOW I NEED TO BUY MORE AIR CONDITIONERS.

SO THINK OF YOUR ROADS THE SAME WAY.

THE GOVERNMENT FINANCE OFFICERS ASSOCIATION HAS A DOCUMENT CALLED RETHINKING REVENUE.

THEY'RE OWNING THE FACT THAT THAT YOUR BUDGET DOCUMENTS HIDE THAT INFORMATION FROM YOU ALL BECAUSE YOU DON'T SEE JUST LOOK AT YOUR DEPRECIATION SCHEDULE.

THAT'LL TELL YOU THE COST OF ALL OF YOUR ROADS AND YOUR PIPES AND THINGS LIKE THAT.

AND, YOU KNOW, IT'S EXPENSIVE.

SO ALLOWING YOUR CITIZENS TO SEE THAT AND UNDERSTAND THAT THEY NEED TO UNDERSTAND THE COST OF WHAT YOU'RE DEALING WITH IN MAINTAINING THIS MULTI-BILLION DOLLAR CORPORATION.

THAT'S THE HARDEST CHALLENGE WITH ALL OF THIS IS MAKING THE FINANCIAL SYSTEM ENTERTAINING AND UNDERSTANDABLE.

THANK YOU. AND I WANT TO BE RESPECTFUL WITH YOUR YOUR TIGHT SCHEDULE.

WE'LL TURN BACK TO OUR PANELISTS HERE FOR REMAINING QUESTIONS.

THANKS FOR YOUR TIME AND THANK YOU.

APPRECIATE YOU BEING HERE.

AND YOU KNOW, I SEE THIS AS LIKE JUST MY OPINION.

THERE'S TWO DIFFERENT ANALYZES HERE.

THERE'S THE ANALYSIS WHEN IT COMES TO LAND USE, WHICH IS YOU KNOW, WE'VE GOT OUR PLANNERS UP HERE AND OUR DECISIONS WE MAKE IN LAND USE.

AND I AGREE WITH CHAIRWOMAN MENDELSOHN I MEAN, IT'S NOT IT'S NOT ALWAYS JUST ABOUT THE REVENUE.

THERE'S OTHER FACTORS WE GOT TO CONSIDER.

AND THERE THERE ARE PEOPLE WHO THERE IS A PLACE FOR SINGLE FAMILY NEIGHBORHOODS.

THERE'S A PLACE FOR DENSITY.

AND THAT'S ONE DECISION WE'VE GOT TO WE'VE GOT TO CONSIDER.

BUT I THINK THIS FINANCIAL PIECE SHOULD BE A PART OF THAT DISCUSSION AT ALL TIMES.

AND THEN THE SECOND THING IS THE CITIES, TO COUNCILWOMAN WILLIS COMMENTS THE CITY'S LAND AND HOW WE COULD USE THIS TOOL FOR THAT.

SO I GUESS IF I WAS TO TURN THAT QUESTION THE FIRST ONE OVER TO THE PLANNING DEPARTMENT, IS THERE A WAY YOU COULD, LIKE, ENVISION COMING BACK TO US WITH AN ANSWER TO THAT ON HOW YOU COULD TAKE THAT TO THE NEXT LEVEL, OR IS THAT WE JUST NEED TO GET BACK TO YOU? YEAH, I DO THINK THAT I THINK WE COULD COME BACK WITH SOMETHING AND I THINK THAT'S THROUGH.

FORWARD DALLAS IN THE BACKGROUND.

WE'VE STARTED DOING SOME OF THIS WORK OF, YOU KNOW, IF WE RECOMMEND CERTAIN DEVELOPMENT PATTERNS IN X AREA, WHAT KIND OF IMPACT DOES THAT HAVE VERSUS A DIFFERENT TYPE OF DEVELOPMENT PATTERN.

[00:40:02]

AND JUST SO THAT WE CAN HAVE A MORE HONEST AND TRANSPARENT CONVERSATION OF ALL OF THE CONSIDERATIONS THAT GO INTO DIFFERENT DEVELOPMENT PATTERNS.

I THINK WHAT WE COULD DO MORE OF, AS WELL AS IS BRING TO THE FOREFRONT SOME OF THOSE FINANCIAL CONSIDERATIONS MORE OFTEN THAN NOT, BECAUSE I THINK WE WE STAY TO THE GENERAL ADEQUATE PUBLIC FACILITIES AND LAND USE CONSIDERATIONS AND DON'T NECESSARILY GET INTO A LOT OF THE FINANCIAL IMPACT.

AND I THINK THAT THIS COULD REALLY HELP US DO THAT, TO AT LEAST HAVE THAT BE IN THE FOREFRONT OF THE DISCUSSION MORE SO, SO THAT WE CAN WE CAN WEIGH THOSE. WE CAN WEIGH THE TRADE OFFS.

THANK YOU. AND THEN MY SECOND QUESTION IS FOR WHO DEALS WITH THE COUNTY? THAT YOU JACK? THE COUNTY WHEN WE'RE ASKING THE COUNTY FOR, TO SUPPORT A SPECIFIC INFRASTRUCTURE PROJECT THAT WE'RE DOING, HOW CAN WE USE THIS FINANCIAL TOOL TO SHOW THEM THE VALUE TO THE COUNTY OF INVESTING IN CITY INFRASTRUCTURE PROJECTS? COUNCIL MEMBER WEST. ARE YOU REFERRING TO TRUE INFRASTRUCTURE PROJECTS THAT OUR PUBLIC WORKS DEPARTMENT, DR.

PEREZ, AND OTHERS WHO ALREADY HAVE COORDINATING MEETINGS WITH THE COUNTY COULD DO THAT WORK.

ARE YOU TALKING ABOUT SOCIAL SERVICES OR WHAT SPECIFICALLY? THE FIRST, WHEN WE'RE WHEN WE'RE LOOKING AT INVESTING IN INFRASTRUCTURE PROJECTS TO SUPPORT MORE DENSITY SPECIFICALLY? CERTAINLY. LIKE ROADS, SEWER, ALL THAT'S ANYTHING THE COUNTY WOULD POSSIBLY EVER CONTRIBUTE TO.

HOW CAN WE CAN WE USE THIS TO LEVERAGE MORE SUPPORT FROM THEM IN SOME WAY? SO, I SEE ALI IN THE AUDIENCE, SO I'M GOING TO ASK HIM TO COME FORWARD TO POSSIBLY TALK ABOUT ANY WORK THAT THEY DO IN COORDINATING WITH DALLAS COUNTY ON VARIOUS PROJECTS TO TALK ABOUT OUR, OUR PLANS.

AND I'M HOPING THE COUNTY IS LISTENING TO THIS AND WATCH THIS PRESENTATION [INAUDIBLE].

GOOD AFTERNOON, DIRECTOR OF PUBLIC WORKS.

WE DO WORK WITH COUNTY, TO GET SOME SORT OF REIMBURSEMENT FOR SOME OF THE PROJECTS.

THERE ARE A SPECIFIC TYPE OF PROJECT THAT WE CAN DO IS NOT ELIGIBLE TO ALL THE PROJECTS.

IT HAS TO BE CERTAIN TREATMENTS, CERTAIN, TYPE OF, CLASSIFICATION.

BUT WE DO HAVE THAT ON OUR, PROGRAM ANYWAYS.

OKAY. THANK YOU.

COLLEAGUES, DO YOU HAVE ANY MORE QUESTIONS FOR OUR PANELISTS? CHAIRMAN. CHAIRMAN, I WAS JUST GOING TO, ADD ALSO CARRIE ROGERS, DIRECTOR OF THE OFFICE OF GOVERNMENT AFFAIRS.

WE DO LEAD, A QUARTERLY MEETING WITH DALLAS COUNTY AND OUR VARIOUS DEPARTMENTS TO TALK ABOUT INFRASTRUCTURE, SOCIAL SERVICES, PROGRAMS, THAT SORT OF THING. AND IT WAS ACTUALLY BORN OUT OF A HOUSING DISCUSSION THAT DAVID, HAD WITH HIS COUNTERPARTS AT THE COUNTY.

AND IT'S JUST EXPANDED TO INCLUDE OUR OTHER COUNTY, I MEAN, OUR OTHER DEPARTMENTS AND COUNTIES AS WELL.

THANK YOU FOR THAT, CHAIRWOMAN MENDELSOHN.

THANK YOU. I JUST HAVE TWO QUESTIONS.

THE FIRST ONE IS IF THERE'S A CONSIDERATION ABOUT OWNER OCCUPIED VERSUS RENTAL PROPERTIES IN THIS? IN VALUATION? YEAH, WE LOOKED AT.

AND AGAIN, THIS WASN'T IN THE PRESENTATION TODAY, BUT WE ACTUALLY LOOKED AT SPECIFIC CENSUS TRACT INFORMATION HISTORICALLY M ARGINALIZED COMMUNITIES THAT WERE, FORMERLY REDLINED, ALL THE WAY DOWN TO THE TO THE PARCEL, BASED ON THE CENSUS TRACT.

SO THE ANSWER IS YES.

WE DID LOOK AT OWNER OCCUPIED VERSUS VERSUS, RENTAL PROPERTIES.

AGAIN, SOME OF THOSE, SOME OF THE ANALYSIS THAT URBAN THREE, AND BOTH IN PARTNERSHIP WITH THE A&M REAL ESTATE CENTER ULTIMATELY FOUND WAS THE REVENUE THAT GENERATES THE SAME PRODUCT TYPE IS NOT GOING TO BE THE SAME REVENUE THAT'S GENERATED IN A DIFFERENT LOCATION.

SO THAT'S WHEN YOU'RE COMPARING APPLES TO APPLES OF, YOU KNOW, THE SAME DEVELOPMENT IN ONE AREA.

IT MAY NOT HAVE THE SAME REVENUE IMPACT THAT IT MIGHT HAVE IN ANOTHER AREA.

AND TO THE TO THE NORTH STAR QUESTION, I THINK THAT THAT'S THE THAT'S THE ANSWER.

AND THAT'S THAT'S THE DISCUSSION THAT WE HOPE TO BE HAVING FROM THIS IS THIS DOESN'T SHOW YOU THE SOLUTION.

THIS IS THE DATA.

AND WHAT THE DATA IS SAYING IS THE CONVERSATION MAY NEED TO CHANGE.

AND OUR HOPE WAS BY PRESENTING THIS DATA AND BY BY DOING ALL OF THIS RESEARCH, THAT WE COULD START THAT CONVERSATION CHANGE TODAY.

BECAUSE WE AGREE WITH YOU, THE SINGLE FAMILY FABRIC NEIGHBORHOOD, THOSE NEIGHBORHOODS, YOU KNOW, MANY OF OUR MEMBERS HELP BUILD

[00:45:10]

AND WE ENCOURAGE THOSE THAT PRODUCT BEING OFFERED, THE EARLIER OR THE EARLIER DISCUSSION ABOUT, WHAT IS DEVELOPABLE LAND, MAYBE, MAYBE THAT'S THE THING WE WANT TO TAKE AWAY FROM THIS IS LET'S START SMALL.

IF WE START THINKING COMPREHENSIVE AND BROADEN THIS DISCUSSION TO TO TAKE ON THE ENTIRE CITY, THE ENTIRE COUNTY, WE MAY GET CONVOLUTED.

AND SO, FROM OUR PERSPECTIVE, PROVIDING THIS RESEARCH AND DATA.

AND FOCUSING AND AIMING SMALL TO START WITH IS PROBABLY THE BEST OBJECTIVE.

SO THE FIRST THING YOU SAID BASICALLY WAS THAT IT DEPENDS ON THE LOCATION.

SO HERE THE ASSOCIATION OF REALTORS IS SAYING LOCATION MATTERS.

I THINK THAT'S YOUR YOUR MOTTO.

RIGHT. AND THEN STICKING WITH YOUR COMMENTS ABOUT SINGLE FAMILY NEIGHBORHOODS, DO YOU THINK, YOU KNOW, THERE'S A CONVERSATION THAT'S BEEN STARTED HERE ABOUT HIGHER DENSITY AND SINGLE FAMILY NEIGHBORHOODS BY ALLOWING DUPLEXES TRI AND QUADS, AND WITHIN A SINGLE FAMILY NEIGHBORHOOD, BREAKING UP A LOT INTO VERY SMALL LOTS.

WOULD YOU THINK THAT THAT KIND OF, DENSITY WOULD AFFECT, PEOPLE'S WILLINGNESS TO LIVE IN A SINGLE FAMILY NEIGHBORHOOD AND PERHAPS EVEN THEIR WILLINGNESS TO STAY WITHIN THE CITY? I MEAN, I THINK THAT'S A IT'S A, IT'S A LOADED QUESTION FROM A STANDPOINT OF EVEN LIKE MULTI-FAMILY LOOKS DIFFERENT, DIFFERENT AREAS, DIFFERENT TYPES OF PRODUCT TYPE.

WHAT WE'RE LOOKING AT ARE WE LOOKING AT A STUDIO APARTMENT WITH A SMALLER FOOTPRINT THAT IS MORE AFFORDABLE, OR MORE DESIRABLE FOR A CERTAIN DEMOGRAPHIC VERSUS, YOU KNOW, AFFORDABLE WORKFORCE HOUSING? YOU KNOW, MULTIFAMILY SITUATIONS WE WERE SEEING IN SINGLE FAMILY NEIGHBORHOODS, DEVELOPERS STARTING TO PUT TOWNHOMES, CONDO PRODUCT, YOU KNOW, DIFFERENT THINGS.

IT'S WHEN YOU START ADDING, YOU KNOW, 2 TO 4 UNITS THAT I THINK IT GETS A LITTLE BIT DIFFERENT.

SO, I THINK THERE'S THERE'S ABSOLUTELY A DESIRE AND, AND A DEMAND, BUT IT IS LOCATION SPECIFIC AS TO WHAT THE COMMUNITY IS GOING TO EMBRACE, AND SUPPORT.

AND SO IT'S NOT A ONE SIZE FITS ALL UNFORTUNATELY.

WE KNOW THAT ANYBODY WHO'S LOOKED AT RENTING OR PURCHASING REAL ESTATE, DIFFERENT FACTORS ARE GOING INTO PLACE.

BUT [INAUDIBLE] I DO RESIDENTIAL REAL ESTATE, BUT I ALSO HAVE A LARGE PROPERTY MANAGEMENT AND ASSET MANAGEMENT PORTFOLIO AND RANGES ANYWHERE FROM $700 A MONTH UNITS TO $8,000 A MONTH.

AND EVERY NEED IS NEEDED THROUGHOUT DIFFERENT COMMUNITIES.

AND I MIGHT HAVE ALL OF THAT VARIATION IN ONE SPECIFIC TOWN.

BUT I THINK THOSE CONVERSATIONS HAVE TO GO BACK TO THE IMMEDIATE COMMUNITY AND WHAT, WHAT THEY'RE GOING TO EMBRACE AND SUPPORT IN THAT.

SO, DENSITY IS DESIRABLE, AND IS AN IMPORTANT, BUT IT HAS TO BE, YOU HAVE TO LOOK AT IT THROUGH AN APPROPRIATE LENS THAT IS THIS GOING TO SUPPORT THE COMMUNITY'S NEEDS AND ARE THEY GOING TO EMBRACE THAT DENSITY? SO NOT A CITYWIDE EFFORT.

CORRECT. THANK YOU.

AND I'VE GOT A COUPLE OF FOLKS TEED UP HERE, BUT, I THINK [INAUDIBLE] YOU HAVE SOMETHING TO ADD TO THAT? THE QUESTION BEFORE THE LAST ONE? ONLY IF YOU WANT ME TO. I KNOW WE'RE I KNOW WE'RE PRESSED ON TIME.

I JUST WANTED TO SAY THAT WE, MET, STARTED TALKING TO TO PLANNING, IN ABOUT SEPTEMBER TO TALK ABOUT THE URBAN THREE METHODOLOGY.

AND WE STARTED WORKING ACTUALLY ON A VERY SIMILAR PROJECT.

WE, OF COURSE, DON'T HAVE THE MLS DATA LIKE METROTEX DOES.

SO WE WERE USING APPRAISAL DISTRICT DATA.

BUT ALL OF THAT TO SAY THAT IF WE WERE TO GET THE METHODOLOGY, THE MODEL THAT JOE JUST PRESENTED, WE WOULD BE ABLE TO HELP USE THAT TO KIND OF TEST DIFFERENT SCENARIOS.

SO IF YOU'RE LOOKING AT A PARTICULAR NEIGHBORHOOD, YOU'RE THINKING, WHAT WOULD IT MEAN FOR THE COMMUNITY IF WE TURNED THIS INTO X MIXED USE OMSETHING LIKE THAT ON JUST THIS ONE LITTLE AREA.

WHAT WHAT DOES THAT LOOK LIKE? WHAT DOES THAT DO FOR US SO THAT WE CAN KIND OF PLAY WITH THAT IN THE TOOL BEFORE WE ACTUALLY BUILD IT? SO WE ARE EXCITED TO DO THAT.

I THINK THIS IS REALLY INTERESTING WORK AND SUPPORT THE DEPARTMENTS THAT THAT MAKE THOSE CALLS IN TERMS OF WHAT CAN WE DO WITH SOME PORTION OF OUR VACANT LAND AND FIGURE OUT HOW MUCH OF A PERCENTAGE DO WE NEED TO CHANGE IN CERTAIN NEIGHBORHOODS? RIGHT. LIKE WE'RE NOT TALKING ABOUT TURNING DALLAS INTO NEW YORK, RIGHT? DALLAS IS NEVER GOING TO BE THAT VERTICAL.

THAT'S NOT OUR COMMUNITY. THAT'S NOT OUR CULTURE.

BUT WHAT DOES IT MEAN TO SUPPORT CERTAIN AREAS OF GROWTH? AND THEN HOW CAN WE PLAY WITH THAT, THOSE NUMBERS IN THE DATA BEFORE WE ACTUALLY GO THROUGH THE WORK AND ZONING CHANGES AND BUILDING AND DEVELOPMENT.

SO WE'RE EXCITED TO SUPPORT PLANNING THOSE EFFORTS AND REALLY EXCITING TO PARTNER WITH METROTEX.

THANK YOU. AND I'M GOING TO TURN IT OVER TO COUNCILWOMAN WILLIS.

THERE WAS A REQUEST BY NOW, THREE OF MY COLLEAGUES FOR THE HOUR LONG VIDEO.

SO IF YOU GUYS DON'T MIND CIRCULATING THAT TO US, THAT WOULD BE APPRECIATED.

[00:50:05]

I MEAN, WE CAN WALK OUT THE DOOR HERE AND WE CAN SEE SOME SOCIETAL ISSUES.

WE HAVE TO DEAL WITH INFRASTRUCTURE ISSUES, TRANSPORTATION, JUST A HOST OF THINGS THAT DALLAS NEEDS HELP WITH.

AND SO I THINK TO THE EXTENT THAT WE CAN HAVE THAT MEETING AND UNDERSTAND SOMETHING LIKE THIS, THAT WHEN WE'RE ASKING FOR HELP, THAT IT BENEFITS MANY FOLD TO THE COUNTY AS WELL.

AND THEN, THANK YOU, CHAIR, FOR FOR BRINGING THIS BEFORE THIS COMMITTEE.

THERE ARE SO MANY THINGS THAT IT OPENS UP TO EXPLORE.

AND ONE OF THEM, I THINK IS, NON-DISCLOSURE AND PAYING YOUR FAIR SHARE.

AND SO, I WOULD LOVE TO UNDERSTAND MORE AROUND WHAT THAT GAP IS BECAUSE, AGAIN, AS AS RESIDENTS ARE PAYING THEIR FAIR SHARE, WE NEED TO BE SURE THAT THIS IS, YOU KNOW, SPREAD AROUND WHERE IT SHOULD BE BECAUSE WE'VE GOT A LOT OF THINGS, A LOT OF NEEDS AND A LOT OF THINGS TO PAY FOR.

THANK YOU. THANK YOU.

DID YOU ALL WANT TO CLOSE AT THIS POINT WITH ANYTHING? [INAUDIBLE] I'LL ADD ONE THING TO COUNCILWOMAN MENDELSOHN QUESTIONS.

AND IT'S IT'S SENSITIVE BECAUSE ONCE WE START HAVING THIS CONVERSATION ABOUT HOW WE DEVELOP LAND, HOW WE HOW WE LOOK AT IT, HOW WE USE IT, AND HOW WE LOOK AT IT FROM A REVENUE STANDPOINT.

WHAT ISN'T GOOD IS HAVING A CONVERSATION THAT AUTOMATICALLY KILLS THE CONVERSATION.

AND WHAT I MEAN BY THAT IS THE PROPERTY RIGHTS OF THOSE ESTABLISHED NEIGHBORHOODS MUST BE MAINTAINED, PROTECTED AND PRESERVED.

AND IF WE START LOOKING AT IDEAS AND CONCEPTS THAT ARE GOING TO UPROOT THE FABRIC OF THOSE NEIGHBORHOODS, FABRIC OF THOSE COMMUNITIES, WE'RE NEVER GOING TO GET STARTED.

AND NONE OF THIS, NONE OF THESE IDEAS AND NONE OF THESE CONCEPTS WILL EVER GET OFF THE GROUND.

ONE OF THE THINGS WE CAN DO IS LOOK AT AREAS THAT ARE OF IMMEDIATE NEED, WHETHER THEY'RE CITY OWNED DIVESTITURE PROPERTIES OR WHETHER THEY'RE AREAS THAT ARE UNDERSERVED AREAS OR PARTS OF OUR COMMUNITY THAT, NEED THESE TYPES OF PRODUCTS, THOSE THAT SHOULD BE THE FIRST TARGET, SO TO SPEAK. AND AS WE PROVE THAT THESE CONCEPTS WORK AND THAT THE CITY'S REVENUE ULTIMATELY GROWS FROM THAT TYPE OF CLASSIFICATION, WE'RE GOING TO FIND THAT THAT WE'RE IN A MUCH BETTER FINANCIAL FOOTING.

AND I THINK. IF THAT'S IF THAT'S THE HEADLINE OR THE THE THING THAT JOE WAS TRYING TO SAY.

AGAIN, I'M NOT SPEAKING FOR HIM, BUT THAT'S ULTIMATELY WHAT WE TAKE OF THIS.

AND WE JUST ARE EXCITED TO WORK WITH YOU GUYS AND THE CITY AND THE STAFF, TO PROVIDE THIS DATA AND CONTINUE THIS CONVERSATION.

YEAH. THANK YOU. CHAIRMAN.

SO CAN YOU HELP ME UNDERSTAND THE CORRELATION BETWEEN COMMERCIAL NON-DISCLOSURE AND THEN WE TALKED A LOT ABOUT THE UNDERVALUED PROPERTIES.

AND SO WOULD THAT HELP WITH THOSE, DEVELOPMENTS, PAYING THEIR FAIR SHARE.

SO BRINGING US TO SOMETHING THAT'S MORE SO.

I'LL ANSWER THAT. I THINK I KNOW WHAT YOU'RE ASKING.

AND I'LL ALSO HAVE, ONE OF OUR PRACTITIONERS ANSWER THAT THE COMMERCIAL VALUATION IS MUCH DIFFERENT THAN THE SINGLE FAMILY VALUATION.

THE WAY THE PROPERTIES ARE ASSESSED, THE WAY THEY'RE EVEN HELD AS CORPORATE ENTITIES, ARE MUCH DIFFERENT, WHICH MAKES IT MORE COMPLEX, DOESN'T MAKE IT, ANY EASIER TO UNDERSTAND.

SO IT'S HONESTLY, WHEN YOU'RE ASSESSING RESIDENTIAL PROPERTY VERSUS COMMERCIAL PROPERTY, YOU'RE ASSESSING APPLES AND ORANGES, FROM A CLASSIFICATION STANDPOINT. BUT I'LL ALSO LET [INAUDIBLE].

I MEAN, I THINK THAT'S THE BIGGEST THING.

AGAIN, I HAVE, YOU KNOW, A 24 UNIT, YOU KNOW, COMPLEX AND I'M A SMALL MINORITY OWNER, BUT DO THE PROPERTY MANAGEMENT FOR IN DENTON COUNTY.

AND THAT VALUATION LOOKS VERY DIFFERENT THAN A SINGLE FAMILY HOME SITTING IN THE SAME, THE SAME COUNTY OR CITY BECAUSE WE HAVE DEPRECIATION, WE HAVE 24 UNITS.

WE HAVE TO LOOK AT THE COST OF INSURANCE, THE COST OF MAINTENANCE, ALL OF THOSE THINGS.

SO IT'S MUCH EASIER TO ASSESS, YOU KNOW, THE VALUATION OF A SINGLE FAMILY OR LIKE MULTIFAMILY PROPERTY UNDER FOUR UNITS.

AND SO I THINK IT'S JUST A IT'S A COMPLEX, SITUATION.

TO YOUR POINT, IS THERE A BIG DISPARITY IN THAT IN THAT REALM? YES. IT'S JUST WHAT IS THE SOLUTION? BECAUSE, AGAIN, THERE'S NOT A MECHANISM OR A RUBRIC TO BE ABLE TO BE APPLIED, YOU KNOW, ACROSS THE BOARD.

BUT IT'S THE SAME THING THAT WE WERE TALKING ABOUT IN SINGLE FAMILY.

I THINK THERE'S A THERE'S A BETTER VALUATION TOOL THAT WE'VE BEEN, YOU KNOW, WE'RE USING THAT RINSE AND REPEAT FOR DECADES ON DECADES.

THERE HAS TO BE A BETTER WAY TO DO THINGS.

AND I THINK BRINGING THE DATA TO YOU GUYS AND AND GIVING THIS ACCESS TO YOU, THAT'S THE BIGGEST THING.

[00:55:02]

WE WANT TO HELP PEOPLE HAVE QUALITY, NOT JUST AFFORDABLE HOUSING, BUT HOUSING THEY CAN BE PROUD OF.

AND IF WE CAN BE THE, THE, THE CONDUIT TO BRING THIS, YOU KNOW, MILLION DOLLAR STUDY WITH DIFFERENT PHASES TO YOU GUYS TO BE ABLE TO USE IN YOUR DIFFERENT DEPARTMENTS WITH PLANNING AND INFRASTRUCTURE AND ZONING AND ALL OF THESE THINGS.

AND WE'VE DONE OUR JOB AS THE GRASSROOTS ADVOCATES TO CONTINUE TO TO MAKE THESE COMMUNITIES THRIVE.

AND SO ANYTHING THAT WE CAN DO ON THAT END, WE WANT TO CONTINUE TO BE PARTNERS WITH YOU GUYS TO HELP YOU MAKE THOSE DECISIONS.

THANKS. DISTRICT TWO IS PROBABLY ONE OF THE MOST UNIQUE DISTRICTS IN THE ENTIRE CITY.

A REALLY GOOD REPRESENTATION OF THE ENTIRE CITY, FROM CBD TO SINGLE FAMILY, FROM HISTORIC TO, ROW HOMES.

AND REALLY EXCITED TO SEE OUR DENSITY IN THE DOWNTOWN AREA WITH CONVERGE HUNDREDS OF UNITS BEING CONVERTED RIGHT NOW, TO FROM OFFICE TO SINGLE FAMILY.

WHEN IT COMES TO CITY OWNED PROPERTY, AS WE'RE EVALUATING OUR CITY ASSETS IN TRYING TO SHAPE WHAT WE WANT OUR CITY TO LOOK LIKE.

IS THIS THE APPROPRIATE TIME FOR US TO START LOOKING AT THOSE PARCELS? AND THEY MIGHT BE ZONED INDUSTRIAL, BUT WE WE MIGHT WANT TO ACTUALLY RESHAPE THAT INTO MIXED USE.

AND SO WHAT DO YOU GUYS RECOMMEND THAT WE START LOOKING AT THAT TODAY BEFORE WE START, EXPLORING OPTIONS WITH THOSE, PIECES OF PROPERTY.

I WOULD I WOULD ABSOLUTELY START HAVING THAT CONVERSATION WITH THE ONE CAVEAT IS THE PEOPLE WHO OWN THOSE INDUSTRIAL OR WHATEVER, PROPERTY CLASSIFICATION TYPE AS A PROPERTY OWNER, THE DOWN ZONING OF THAT PROPERTY FROM ONE CLASSIFICATION TO THE OTHER COULD, COULD BE A DEVALUATION OR INFRINGEMENT ON THAT PERSON'S PROPERTY RIGHTS.

IT NEEDS TO BE A, A, SYNONYMOUS DISCUSSION WITH EACH PROPERTY OWNER OF THOSE PROPERTY TYPES.

SO, HAVING THAT DISCUSSION ABSOLUTELY ENCOURAGE IT.

BUT JUST BE MINDFUL THAT WHEN THEY PURCHASED THAT PROPERTY, REGARDLESS OF THE ZONING CLASSIFICATION, THEY DID SO WITH THAT UTILITY IN MIND.

AND IF THE CITY UNILATERALLY CHANGES THAT ON THEM, THAT'S THAT'S A DIFFERENT, DIFFERENT TYPE OF DISCUSSION.

BUT IF, IF, IF THOSE CONVERSATIONS HAPPEN AND THERE'S THERE'S COLLABORATION WITH THESE PROPERTY OWNERS, IT'S, IT'S WORKED IN OTHER AREAS.

AND I AND I WOULD ABSOLUTELY ENCOURAGE THE CITY TO CONTINUE THIS CONVERSATION.

AND I'M SORRY, I'LL BE MORE SPECIFIC TO CITY OWNED PROPERTY.

OKAY. CITY OWNED PROPERTY.

THE ANSWER IS YES.

WE'RE SEEING THAT HAPPEN IN ALL SORTS OF OUTSKIRTS.

TAKE GRAYSON COUNTY, ONE OF THEM.

I MEAN, WE'VE SEEN SOME OF THE INTERESTING THINGS THAT ARE GOING ON THERE.

BUT YOU'VE GOT, YOU KNOW, QUALITY DUPLEXES THAT ARE LINED NEXT TO, YOU KNOW, SOME SOME LIGHT INDUSTRIAL FACTORIES, YOU KNOW, ALMOST ADJACENT TO THE PROPERTY THAT, YOU KNOW, IT DOESN'T MATERIALLY CHANGE THE USE TO HAVE LIGHT INDUSTRIAL NEXT TO RESIDENTIAL.

BUT THAT'S BEEN A GREAT, YOU KNOW, THAT THAT'S BEEN A GREAT SOURCE TO CHANGE THAT, THAT PROPERTY ZONING.

BUT IT HAD TO BE RIGHT FOR THAT AREA.

AND SO I THINK THIS IS A GREAT OPPORTUNITY FOR YOU TO KIND OF SHIFT THAT PRISM AS TO HOW YOU'RE LOOKING AT THINGS.

THAT THIS ONE, THE CITY IS LOOKING AT THEIR OWN OWN PORTFOLIO.

THANK YOU. ALL RIGHT.

THANK YOU. WE ARE GOING TO WRAP IT UP.

I WOULD JUST ASK STAFF.

AND THIS IS THIS GOES FOR ADVOCATES FOR THIS KIND OF, POLICY.

METROTEX VERY CURIOUS TO HEAR, YOU KNOW, COMMUNICATE WITH US LIKE ON WHAT YOU FEEL LIKE OUR NEXT STEPS SHOULD BE THAT WOULD BE MOST USEFUL AND HOW TO TAKE THIS DISCUSSION FORWARD. I WOULD CERTAINLY HOPE TO HEAR FROM STAFF, BUT ALSO INTERESTED IN OUR OUR INDUSTRY PARTNERS.

YOUR ADVICE CONTINUING ON AS WELL.

I KNOW YOU'VE SAID IT TODAY, BUT AS AS WE TAKE SPECIFIC STEPS FORWARD.

SO AT THIS POINT WE WILL MOVE ON TO BRIEFING ITEM B.

I WANT TO INVITE, MISS ROGERS TO JOIN US IN THE FIRING SQUAD HERE, ALONG WITH, MR. DAVIS, TO COME ON UP.

AND IF WE'VE GOT ANYONE FROM, CONVENTION AND EVENT SERVICES OR ECONOMIC DEVELOPMENT THAT WANTS TO COME UP HERE, YOU'RE MORE THAN WELCOME TOO.

ALL RIGHT, TEE THIS ONE UP.

FOR THOSE OF YOU WHO SIT ON ECONOMIC DEVELOPMENT COMMITTEE WITH WITH, MAYOR PRO TEM COMMITTEE, AND I'M ON THAT, I THINK, COUNCIL MEMBER RESENDEZ IS ON THERE.

I KNOW, I'M NOT SURE WHO ELSE.

WE HAD THIS DISCUSSION LAST WEEK ABOUT WHETHER TO INCLUDE, THE LEGALIZATION OF GAMBLING AND OTHER TYPES OF GAMES ON AS A LEGISLATIVE PRIORITY FOR OUR LEGISLATIVE AGENDA AS WE LOBBY THE STATE AND THE, THE FEDERAL GOVERNMENT.

[01:00:05]

SO WE ADDED IT ON HERE SO THAT WE COULD HAVE A FOLLOW UP DISCUSSION ABOUT, HOPEFULLY ANSWER SOME QUESTIONS THAT FOLKS HAD, ABOUT GAMBLING AND WHAT IT LOOKS LIKE, REACHED OUT TO OUR, GREAT PARTNER, CRAIG DAVIS.

BECAUSE I REMEMBER HIM MENTIONING TO ME ONE TIME THAT PITTSBURGH HAD GONE THROUGH THIS DURING HIS TENURE AS VISIT PITTSBURGH CEO AND WAS CURIOUS TO HEAR HIS FEEDBACK.

AND BECAUSE OF CRAIG, WE LEARNED THAT MR. RICH FITZGERALD WAS THEIR FORMER COUNTY EXECUTIVE, WHICH IS LIKE OUR VERSION OF A COUNTY JUDGE.

HE'S NOW RETIRED.

AND MR. DAVIS, MR. FITZGERALD ARE BOTH PRESENT TODAY.

ONE OF THEM VIRTUALLY TO JUST ANSWER QUESTIONS ABOUT THINGS THE CITY, MY UNDERSTANDING, THE COUNTY LOOKED AT WHEN THEY DECIDED TO OPEN THIS UP, YOU KNOW, WHEN THE STATE OPENED IT UP AND THEN THEY WELCOMED IT IN.

SO TODAY IS REALLY JUST AN OPPORTUNITY.

I'M GOING TO TEE IT UP FOR CARRIE TO TO JUST TALK ABOUT WHERE WE'RE AT AND THEN FOR US TO ASK QUESTIONS TO THEM.

AND I SEE THIS AS PROBABLY JUST ANOTHER DISCUSSION LIKE THE LAST ONE.

IT'S GOING TO OPEN UP QUESTIONS FOR MORE QUESTIONS LATER, BUT I DO HOPE TO GIVE CARRIE GUIDANCE AT SOME POINT VERY SOON ON WHETHER THIS WILL BE PART OF OUR LEGISLATIVE AGENDA.

WE'LL GO THROUGH, CHAIRWOMAN MENDELSOHN'S COMMITTEE.

SO I'LL TURN IT OVER TO CARRIE.

THANK YOU CHAIRMAN, YOU SAID THAT VERY WELL.

I AM CARRIE ROGERS, DIRECTOR OF THE OFFICE OF GOVERNMENT AFFAIRS.

AND AS YOU NOTED, WE HAVE STARTED THE PROCESS, UNDER THE LEADERSHIP OF OUR CHAIR, MISS MENDELSOHN, TO BEGIN DEVELOPMENT OF OUR LEGISLATIVE PROGRAM FOR 2025.

AND SO AS WE'VE MOVED THROUGH THAT PROCESS, A FEW OF OUR COUNCIL MEMBERS HAD SUBMITTED CONSIDERATION OF CASINO GAMBLING AND, CARD ROOMS AND, GAME ROOMS, ETC., FOR CONSIDERATION IN THAT PROGRAM.

DURING THE ECONOMIC DEVELOPMENT COMMITTEE, THERE WERE SOME ADDITIONAL QUESTIONS.

AND SO, AS YOU NOTED, WE REACHED OUT TO OUR PARTNERS, AT VISIT DALLAS AND OF COURSE, IN THE CONVENTION AND VISITORS OFFICE HERE AS WELL TO, TO DIVE INTO THAT, SOME OF THE FEEDBACK THAT WE HAD HEARD FROM THE ECONOMIC DEVELOPMENT COMMITTEE WERE QUESTIONS RELATED TO PUBLIC SAFETY, OF COURSE, ECONOMIC IMPACT, COMMUNITY IMPACT, AND IMPACT ON THE ARTS.

AND SO, SO WHAT WE'RE HERE TO DO TODAY IS, IS TO GATHER SOME INSIGHT FROM OUR PARTNERS AND THEN HOPEFULLY, GET SOME DIRECTION OR ADDITIONAL FEEDBACK ON HOW WE SHOULD MOVE FORWARD WITH OUR LEGISLATIVE PROGRAM.

SO I WANT TO NOTE AGAIN THAT REGINALD WILLIAMS IS HERE FROM OUR CONVENTION AND, EVENT SERVICES TEAM.

ROSA COULDN'T MAKE IT TODAY.

AND THEN CRAIG DAVIS, CEO WITH VISIT DALLAS AND RICH FITZGERALD IS ONLINE.

BUT WE'RE GOING TO KICK IT OFF WITH CRAIG.

SURE WELL, THANK YOU, CHAIRMAN.

AND I'M HERE TODAY TO TALK ABOUT MY EXPERIENCE IN PENNSYLVANIA AND PITTSBURGH AND SPECIFIC.

I WAS THERE WHEN WE STARTED.

WE'RE AT THE SAME POINT IN TIME.

WE ARE HERE IN TEXAS.

WE STARTED TO TALK ABOUT THE POSSIBILITY OF GAMING BEING PASSED IN THE LEGISLATURE, AND WE STARTED TO TALK ABOUT HOW WE WOULD PREPARE OURSELVES SHOULD IT COME IN PITTSBURGH, PENNSYLVANIA, WHICH IS A LOT SMALLER THAN DALLAS.

SO I WANT TO BE VERY, VERY SPECIFIC ABOUT THIS, THAT I WAS THERE AT THE THE STARTING WHEN WE STARTED TO TALK ABOUT IT.

I AM GOOD FRIENDS WITH RICH FITZGERALD, WHO WAS THEN ON COUNTY COUNCIL AND THEN BECAME THE, THE COUNTY EXECUTIVE.

AND RICH AND I SPOKE ON THE PHONE, SOMETIME LAST WEEK ABOUT SORT OF OUR EXPERIENCES WITH THIS.

AND I, I CAN TALK ABOUT MY EXPERIENCE AT THE BEGINNING.

AND AS GAMING WAS PASSED AND AS IT CAME INTO THE, THE, COMMUNITY, WHAT HAD HAPPENED, AND FOR US, I'M GOING TO WON'T BURY THE LEAD.

IT WAS VERY, A VERY POSITIVE EXPERIENCE FOR US FROM A TOURISM PERSPECTIVE.

BUT RICH CAN CERTAINLY TALK ABOUT THIS FROM A POLITICAL PERSPECTIVE AND WHAT WHAT CAME OF IT.

BUT I'M HAPPY TO ANSWER ANY QUESTIONS AT ALL.

GREG DID YOU WANT ME TO BEGIN AND TALK ABOUT OUR EXPERIENCES? IS THAT HOW YOU WANT THIS? YEAH, I THINK IT.

HI, RICH. THANKS FOR JOINING US.

I THINK IT WOULD BE HELPFUL IF YOU JUST SORT OF TALKED ABOUT HOW IT CAME ABOUT AND REALLY FOCUS ON WHAT YOU AS A CITY, OR AS A COUNTY, I GUESS, CONSIDERED AS YOU DECIDED.

ALL RIGHT. IT'S GOING TO BE OPENED UP.

WE NEED TO GET READY FOR THIS.

SURE. AND IT STARTED ABOUT A LITTLE OVER 20 YEARS AGO WHEN, FORMER GOVERNOR ED RENDELL WAS ELECTED.

HE WAS ELECTED IN 2002, AND WAS AND CAMPAIGNED ON THIS AND, AND THEN PUSHED IT ONCE HE GOT ELECTED.

IT WAS ENACTED IN 2004.

BUT JUST TO GIVE YOU A LITTLE TIMELINE, OUR CASINO IN PITTSBURGH, THE ONE CRAIG WOULD BE FAMILIAR WITH CALLED THE RIVERS CASINO, DIDN'T REALLY OPEN UNTIL 2009.

SO BY THE TIME APPROVALS AND LICENSING AND ALL THOSE TYPE OF THINGS HAPPENED, IT OCCURRED .

[01:05:01]

AND IT WAS IT WAS SOLD AS A COUPLE OF DIFFERENT WAYS.

NUMBER ONE, ECONOMIC DEVELOPMENT, PROVIDING JOBS FOR PEOPLE AT THE CASINOS AND THE ASSOCIATED HOTELS THAT WOULD BE PART OF IT.

ALSO SOME TAX RELIEF FOR, FOR SENIORS ON PARTICULARLY ON PROPERTY TAX WHEN IT CAME TO SCHOOLS AND THEN TO FUND SOME VERY BIG PROJECTS THAT THEY WANTED TO DO AROUND THE STATE. A CONVENTION CENTER IN PHILADELPHIA, A HOCKEY ARENA FOR THE PITTSBURGH PENGUINS, IN OUR NECK OF THE WOODS IN PITTSBURGH, AS WELL AS HELPING TO FUND SOME THINGS AT OUR INTERNATIONAL AIRPORT AND SOME OTHER OPPORTUNITIES.

SO, WHEN IT CAME ON BOARD AND I BECAME COUNTY EXECUTIVE IN 2011, QUITE FRANKLY, IT'S BEEN VERY POSITIVE ON, ON THE, ON THE ECONOMIC SIDE, PROVIDED A LOT OF JOBS FOR THE PEOPLE THAT WORK AT THE CASINOS.

IT ALSO, BY THE WAY, I WANT TO SAY IT EXPANDED AFTER ABOUT 3 OR 4 YEARS AND TABLE GAMES WERE ALSO ADDED ON BLACKJACK, DICE, ETC..

SO, WE PROVIDE ABOUT $10 MILLION A YEAR, FOR VARIOUS PROJECTS OF ECONOMIC DEVELOPMENT.

THAT COULD BE ANYWHERE FROM $500,000 TO $1 MILLION PER PROJECT.

AGAIN, WE DO ABOUT $10 MILLION A YEAR ON THAT.

THE CITY OF PITTSBURGH RECEIVES ABOUT $10 MILLION A YEAR FOR THEIR OPERATING BUDGET.

WE RECEIVE A LITTLE BIT LESS THAN THAT AT THE COUNTY, MAYBE ABOUT $8 MILLION A YEAR.

TO PUT THAT IN PERSPECTIVE, OUR OPERATING BUDGET AT THE COUNTY LEVEL IS ABOUT $1 BILLION.

SO IT'S NOT NECESSARILY A BIG ITEM, BUT IT IS A IS A RECURRING REVENUE THAT IS THAT HAS GONE UP EVERY YEAR, FOR, FOR THOSE ASPECTS.

SO, YOU KNOW, AS FAR AS, YOU KNOW, SOME OF THE, YOU KNOW, FOLKS WHO TALKED ABOUT THE CRIME AND SOME OF THE OTHER THINGS THAT HAVE OCCURRED, YOU KNOW, I HAVEN'T SEEN MUCH OF THAT. AND I DON'T THINK, YOU KNOW, OUR MAYOR IN THE CITY OF PITTSBURGH HAS HAS AS WELL.

I'M NOT GOING TO SAY EVERYTHING'S BEEN PERFECT WITH IT, BUT IT'S IT'S BEEN A PRETTY POSITIVE EXPERIENCE FOR US.

SINCE THAT OCCURRED WHEN THE 14 CASINOS CAME ONLINE OTHER COUNTIES, OTHER OTHER, VENUES HAVE ASKED FOR TO PUT A CASINO IN THEIR, IN THEIR AREA, AND THEY'VE ADDED THREE OF THEM SINCE THAT TIME.

SO, IT IS SOMETHING THAT IS DESIRED BY, BY LOCAL OFFICIALS, WHETHER IT BE COUNTY EXECUTIVES, COUNTY COMMISSIONERS OR MAYORS.

SOMETHING THAT THAT WE HAVE SEEN.

SO, IF I CAN OPEN UP ANY QUESTIONS AT THAT POINT, THINGS THAT I HAVEN'T HIT UPON, I'LL BE GLAD TO DO SO.

THANK YOU FOR THAT.

AND PLEASE. YEAH, THANK.

PLEASE STICK WITH US FOR QUESTIONS.

WE REALLY DO APPRECIATE YOUR TIME, SIR.

AND GLAD YOU'RE HERE.

CARRIE, WHAT IS IT YOU'RE LOOKING FOR TODAY? AND ONE OF THE REASONS THIS CAME TO THIS COMMITTEE IS BECAUSE THERE'S A TIMELINESS ISSUE WITH THIS BEING A LEGISLATIVE PRIORITY OR NOT FOR THE CITY.

AND, YOU KNOW, WHAT'S WHAT KIND OF TIMELINE ARE WE LOOKING AT NOW? WELL, DARE I GET IN FRONT OF OUR CHAIRWOMAN WHO'S HERE BUT I THINK THE TIMELINE THAT WE HAVE TALKED ABOUT AT, THE LEGISLATIVE COMMITTEE LEVEL IS TO HAVE RECEIVED ALL LEGISLATIVE PRIORITIES BY LATE DECEMBER.

AND THEN RIGHT NOW, THEY'RE GOING THROUGH THE LEGISLATIVE COMMITTEE PROCESS WITH THE EXPECTATION THAT SOMETHING WOULD COME TO THE FULL CITY COUNCIL FOR CONSIDERATION IN FEBRUARY OR BEYOND.

BUT THAT'S WHAT WE'RE WORKING TOWARDS NOW.

I THINK WE'RE LOOKING AT THE FEBRUARY 28TH CITY COUNCIL AGENDA, AND I'M OPEN TO CORRECTION.

ALL RIGHT. IF THIS IS NOT A LEGISLATIVE PRIORITY, HAS HAS THIS COME TO YOU FROM ANY OTHER COMMITTEE AT THIS POINT AS A, AS A PRIORITY? WELL, IT CAME THROUGH THE ECONOMIC DEVELOPMENT COMMITTEE, AS YOU NOTED AND DURING THAT COMMITTEE, THERE WAS A REQUEST TO BRING IT TO THE FULL CITY COUNCIL, FOR BRIEFING.

AND I THINK YOU AND I HAD TALKED ABOUT POTENTIALLY TRYING TO GET TO SOME OF THOSE ADDITIONAL QUESTIONS THAT WE HAD THROUGH COMMITTEE LEVEL AS WELL BEFORE IT CAME TO FULL CITY COUNCIL, WHICH IS HOW WE ENDED UP HERE TODAY.

BUT MY UNDERSTANDING WOULD BE BASED ON WHAT WAS REQUESTED AT THE ECONOMIC DEVELOPMENT COMMITTEE, THAT THERE WOULD BE SOMETHING THAT WOULD COME TO FULL CITY COUNCIL AT SOME POINT IN FEBRUARY TO MAKE THAT DEADLINE.

I WILL NOTE THAT WHEN WE, REQUESTED OF EACH OF THE CITY COUNCIL COMMITTEE CHAIRS TO TURN IN THEIR LEGISLATIVE PRIORITIES THAT CAME OUT OF THEIR COMMITTEE, AND I BELIEVE IT WAS ASKED BY SOME OF MISS MENDELSOHN'S, COMMITTEE COLLEAGUES ON THE LEGISLATIVE COMMITTEE AS WELL, THAT EVEN IF THE CITY COUNCIL TOOK SOMETHING UP NOW OR TOOK ACTION NOW, IT DOESN'T PRECLUDE THEM FOR FROM REQUESTING SOMETHING LATER IN THE YEAR AS WE GET CLOSER TO THE SESSION.

THAT'S IT. HOW DO YOU SEE? SINCE THIS IS GOVERNMENT PERFORMANCE, FINANCIAL MANAGEMENT, I THINK THE FOCUS OF THIS COMMITTEE, IN MY OPINION, SHOULD BE ON THE POTENTIAL REVENUE GENERATION FOR THE CITY AND THE FINANCIAL BENEFITS AND HOW THAT COULD BE USED.

HOW DID THAT INTERPLAY WITH THE STATE TAXATION AND THE CITY COUNTY TAXATION?

[01:10:06]

IN PENNSYLVANIA, WAS IT WHEN HOW DID THAT ALL COME ABOUT? I MEAN, WHERE YOU DECIDED THIS IS A NEW TAX? BUT IT WAS DONE BY THE LEGISLATURE.

THIS THE STATE LEGISLATURE IN HARRISBURG, IN OUR STATE CAPITOL, ALONG WITH THE GOVERNOR.

AND THERE WAS, YOU KNOW, NEGOTIATION BACK AND FORTH.

AND ONE OF THE THINGS WHEN I TALK ABOUT THAT $10 MILLION A YEAR THAT'S GIVEN OUT, BY THE COUNTY AND THE CITY AS WELL.

THAT, IN ESSENCE, IS CONTROLLED BY THE LEGISLATURE.

THEY GET TO DO THAT. SO I GET THE, THE POLITICAL, THEY WANT TO BE ABLE TO GIVE OUT THOSE, THOSE GRANTS.

AND AND THAT WAS PART OF THE LEGISLATION THAT WAS DONE.

WE TYPICALLY DO IT WITH, OUR ECONOMIC DEVELOPMENT DEPARTMENT IN ALLEGHENY COUNTY, AND WORK IN, IN THAT REGARD.

BUT, IT WASN'T A TAX THAT WE AT THE LOCAL LEVEL WERE ENABLED.

IT WAS BASICALLY SET BY THE LEGISLATURE.

AND, YOU KNOW, OBVIOUSLY WE LOBBIED FOR WHAT PERCENTAGE WE WOULD GET IN THOSE TYPE OF THINGS.

AND BUT ONCE THAT WAS SET IN PLACE, IT'S PRETTY MUCH FIXED EVERY YEAR.

NOW THE REVENUES HAVE GONE UP OVER TIME OVER THOSE LAST 15 YEARS THAT IT'S BEEN OPEN, AS MORE AND MORE PEOPLE HAVE USED IT AND GONE THROUGH. AND THE OTHER ARGUMENT I JUST WANTED TO SAY EARLY ON THE GOVERNOR HAD HAD MADE WAS THAT PEOPLE WERE GOING TO GAMBLE ANYWAY AND WERE GOING ACROSS STATE LINES TO TO SOME OF OUR NEIGHBORING STATES THAT HAD CASINOS OPEN NEW JERSEY, WEST VIRGINIA, ETC..

SO SOME OF THIS WAS ABOUT, YOU KNOW, KEEPING THE FOLKS AT HOME SO THAT THEY WOULD SPEND THEIR MONEY, IN PENNSYLVANIA.

THE COLLEAGUES OF CHAIRWOMAN MENDELSOHN.

WELL. THANK YOU. WELL, TO ADDRESS THE TIMELINE, I'LL JUST SAY THAT WE DID GIVE A DECEMBER 15TH DATE, AND, MORE THAN ONE COMMITTEE DID NOT TURN THAT INFORMATION IN A TIMELY BASIS.

SO, WE ARE NOT ON SCHEDULE.

THAT WAS ORIGINALLY LAID OUT, AND I'M NOT SURE WHEN WE'LL CATCH UP IF WE WILL, BUT WE ARE AHEAD OF PRIOR YEAR'S.

SO, THAT'S STILL BEING DETERMINED AT THIS TIME.

THE QUESTIONS I HAVE FOR THE PRESENTATION AND HI, CRAIG, ARE, IF YOU CAN SAY, IF THE REVENUE ENDED UP MEETING THE EXPECTATIONS THAT YOU HAD FORECASTED AND THEN, WHAT EXPENSES YOU MAY HAVE ENCOUNTERED AND PERHAPS WITH YOUR COLLEAGUE IN TERMS OF PUBLIC SAFETY, OR ADDICTION, ISSUES AMONGST THE POPULATION.

RICH DO YOU WANT TO TAKE THAT FIRST? AND THEN I CAN SPEAK MORE SPECIFICALLY ABOUT TOURISM.

YEAH, I THINK THE REVENUE IS PRETTY MUCH MATCHED WITH WHAT THEY EXPECTED.

AND WHEN THEY SOLD THE LICENSES, WHICH BROUGHT A SIGNIFICANT AMOUNT OF THAT UPFRONT MONEY THAT HELPED PAY FOR SOME OF THE THINGS LIKE THE CONVENTION CENTER, THE HOCKEY ARENA, ETC..

IT, YOU KNOW, IT WAS FAIRLY CLOSE.

THE SECOND PART OF IT IS, I CAN TELL YOU FROM A COUNTY BUDGETARY STANDPOINT AND AGAIN, THE JOB THAT I HOLD IS SIMILAR TO COUNTY JUDGE CLAY JENKINS BEING THE PERSON IN IN DALLAS COUNTY.

AND CLAY AND I SERVE ON SERVED ON SOME NATIONAL BOARDS BEFORE I WAS TERMED OUT THIS YEAR, AFTER 12 YEARS.

WE DID NOT SEE OUR PUBLIC SAFETY.

THE COUNTY POLICE, AND OR OUR HUMAN SERVICE DEPARTMENT, BUDGETS GO UP, IN ANY WAY THAT WAS, THAT WAS APPRECIABLE.

SO, I'M NOT GOING TO SAY THAT THERE WEREN'T PROBLEMS IF THEY IF THEY'RE OUT THERE, THEY REALLY HAVEN'T BEEN, VERY WELL PUBLICIZED IN THAT REGARD.

GREAT. THE LICENSING FEES THAT YOU RECEIVED WAS THAT IN STATUTE THAT IT WOULD COME TO THE MUNICIPALITY OR THE COUNTY? AND THEN DID YOU PLEDGE THAT TO DEBT? I HEARD I HEARD YOU SAY CONVENTION CENTER, BUT LIKE, I WOULD LOVE TO HAVE THAT MONEY PLEDGED DIRECTLY TO DEBT.

THAT WAS NEGOTIATED BY THE LEGISLATURE WITH THE GOVERNOR.

SO AS THE LEGISLATION WAS BEING PROPOSED, YOU KNOW, FOLKS WENT IN WITH THEIR WISH LIST, IF YOU WILL, FROM OUR, OUR STATE SENATE AND OUR STATE HOUSE.

SO THE FOLKS FROM PHILADELPHIA THAT HAD A NEED TO FUND A CONVENTION CENTER, PUT THAT FORTH.

MY PREDECESSOR, HAD A NEED TO DO TO BUILD A PENGUINS ARENA.

THE PENGUINS WERE WERE THREATENING TO TO POSSIBLY LEAVE AND GO TO ANOTHER VENUE.

AND I'M SURE WE'VE ALL DEALT WITH THAT AS FAR AS, YOU KNOW, SPORTS TEAMS, BEING ABLE TO USE THEIR LEVERAGE TO GET A NEW ARENA.

AND THAT'S WHAT THEY WERE ABLE TO DO.

WE ALSO HAD A VERY BIG NEED AT OUR PITTSBURGH INTERNATIONAL AIRPORT.

AT THE TIME WE HAD LOST OUR HUB, AND WERE, YOU KNOW, HAVING DIFFICULTY MAKING THE BOND PAYMENTS ON THE AIRPORT, CONSTRUCTION THAT HAD BEEN DONE.

SO THE FORMER COUNTY EXECUTIVE, YOU KNOW, HE PUT HIS WISH LIST TOGETHER, WITH OUR WITH HIS WITH OUR SENATE DELEGATION, IN HARRISBURG TO CARVE THAT

[01:15:06]

SO IT WASN'T EXACTLY HERE'S THE LEGISLATION, HERE'S THE MONEY.

YOU GO FIGURE IT OUT AFTER THAT.

A LOT OF THAT WAS DONE AHEAD OF TIME.

WONDERFUL. WE'LL MAKE SURE OUR LEGISLATIVE FOLKS.

LOOK AT THE SAME THING.

THE OTHER QUESTION I HAVE IS, IN THE STRUCTURE, WAS IT LIMITED TO THE CONVENTION CENTER AREA FOR YOU, OR WAS IT, AVAILABLE CITYWIDE? NO, NO. WHILE THEY PICKED A LOCATION WHERE THE CASINO WAS GOING WAS GOING TO BE, AND IN EACH VENUE, THE DOZEN OR SO OR MORE AROUND THE STATE WENT THROUGH A LICENSING PROGRAM WHERE THEY HAD TO APPLY HOW BIG IT WAS GOING TO BE, YOU KNOW, WHERE IT WAS GOING TO BE LOCATED.

ALL THOSE TYPE OF THINGS, YOU KNOW, HAD TO BE APPROVED.

BUT THE FUNDING, YOU KNOW, WHERE WE PUT, YOU KNOW, SAY FOR OUR OPERATING BUDGET THE 8 TO $10 MILLION A YEAR THAT THE COUNTY GETS AND THE CITY GETS, THAT JUST GOES INTO THE GENERAL FUND, AND THEN THEY CAN, APPROPRIATE THAT FOR WHATEVER, WHATEVER SERVICES THEY WANT TO DO.

SO I WAS I WAS REALLY SPEAKING GEOGRAPHICALLY, LIKE, WAS IT A CERTAIN PLACE ON THE RIVER YOU WERE ALLOWED TO DO IT OR IT HAD TO BE CONNECTED TO THE CONVENTION CENTER? OR WAS IT IT COULD BE ANYWHERE WITHIN THE CITY.

IT DIDN'T HAVE TO BE. OURS IN ALLEGHENY COUNTY IS NOT CONNECTED TO THE CONVENTION CENTER.

IT'S ACTUALLY VERY CLOSE TO WHERE THE STEELERS PLAY, AT ACRISURE STADIUM.

BUT A LOT OF THAT WAS WORKED OUT AHEAD OF TIME.

YES. THEY COULDN'T JUST THEY THEY HAD SOME PLANS, AND PROPOSALS, BUT THAT HAD TO BE PICKED BY THE, BY THE LEGISLATION.

THANK YOU. VICE CHAIR BLACKMON.

THANK YOU.

SO JUST TO BE CLEAR, WE'RE GOING TO HAVE A FULL COUNCIL BRIEFING ON THIS.

I MEAN, IT WENT THROUGH ECO DEV.

IT'S HERE LOOKING AS A LEGISLATIVE PRIORITY BECAUSE I'M LOOKING FOR DATA AND WE'RE ABSENT ON DATA.

AND I DON'T KNOW IF IT WAS ON THE ECO DEV DECK, BUT I, I MEAN, OBVIOUSLY IT IS A WINDFALL, BUT I'M LOOKING FOR HOW MUCH OF A WINDFALL.

YES, MA'AM FOR THE ECONOMIC DEVELOPMENT COMMITTEE BRIEFING, IT WAS JUST A LINE ITEM OF CONSIDER SUPPORT FOR REGULATION AND LICENSING, LICENSING OF CASINOS AND GAMBLING.

AND THE REQUEST WAS TO BRING IT BACK FOR ADDITIONAL INFORMATION TO A FULL CITY COUNCIL BRIEFING.

WE HAVE STARTED THAT WORK WITH OUR DEPARTMENTS TO CAPTURE DATA OF WHAT THE IMPACT WOULD BE HERE AT THE CITY OF DALLAS.

I THINK FOR THIS PARTICULAR BRIEFING, WE WERE WANTING TO HEAR FROM OUR PARTNERS, WHAT THEIR EXPERIENCE WAS, IN TERMS OF GETTING A CASINO STOOD UP AND WHAT THE PROS AND CONS WERE.

BUT THE EXPECTATION, I WOULD IMAGINE, WHEN WE COME TO FULL CITY COUNCIL BRIEFING IS WE'LL HAVE SOME MORE MEAT TO THE BONE, INCLUDING THAT DATA THAT YOU'RE LOOKING FOR.

THIS IS TURNED OVER IN THE LAST TEN DAYS.

AND SO WE EXPECT TO BRING MORE INFORMATION, OKAY.

BECAUSE, YEAH, IT'S, AND I SUSPECT THERE IS TO ALL THESE PARTNER INSIGHTS.

THERE WILL BE SOME, YOU KNOW, INTERSECTIONS OF ALL THIS.

SO I HOPE IT WILL BE A BIGGER STORY.

OKAY. SO WHEN YOU, HI, RICH.

GOOD TO SEE YOU.

SO WHEN Y'ALL WENT TO THE LEGISLATURE, DID Y'ALL GO WITH OTHER CITIES IN ORDER TO GET, YOUR YOUR PROGRAM DEVELOPED, OR DID Y'ALL GO IN IT AS ALONE? AND I GUESS BOTH OF YOU AND CRAIG COULD SPEAK EITHER ONE OF Y'ALL COULD SPEAK TO THAT.

CRAIG, YOU MIGHT HAVE BEEN MORE INVOLVED WITH THAT BECAUSE I, AS A COUNCIL MEMBER, I WASN'T REALLY INVOLVED IN THE LOBBYING.

I WASN'T INVOLVED IN THE LOBBYING.

BUT I DO RECALL THAT THAT AS YOU TALK ABOUT CASINO GAMBLING COMING INTO A STATE, YOU CAN ONLY IMAGINE THAT THEY SAID THAT THEY WERE GOING TO ONLY AWARD 12 AT THE STARTING OR WHATEVER IT WAS. THERE WAS A BIG DEBATE AS TO WHERE THESE CASINOS WOULD GO BECAUSE THERE WASN'T, THERE WERE SPECIFIC CITIES MENTIONED IN THE LEGISLATION AT THE STARTING, AND DIFFERENT CITIES WERE VYING TO BE ONE OF THOSE, THOSE CITIES.

SO I RECALL THAT PITTSBURGH GOT ONE OF THOSE LICENSES.

AND THEN THE DEBATE WAS, WHERE DO WE PUT THIS IN THE CITY OF PITTSBURGH? AND SO IT ENDED UP BY GOING, AS RICH SAID, NEAR WHERE THE STEELERS PLAY.

BUT THERE WERE DEBATES AS TO WHERE THEY WOULD GO IN NEIGHBORHOODS OR NEAR THE CONVENTION CENTER OR DIFFERENT PLACES, AND THAT'S WHERE IT KIND OF ENDED UP.

BUT THAT WAS A NEGOTIATION POLITICALLY WITHIN THE CITY AT THE STATE LEVEL, WHEN YOU WENT IN AND KIND OF, EARMARKED THE LOCATION AND THEN YOU CAME BACK HOME AND THEN GOT REALLY GRANULAR, RIGHT.

AND GETTING AWARDED ONE OF THE AS ONE OF THE CITIES WAS A BIG HURDLE AT THE STARTING.

YOU WOULD ONLY ASSUME THERE'S PHILADELPHIA AND PITTSBURGH AND THEN THERE'S EVERYTHING IN BETWEEN.

SO, WE WOULD HAVE BEEN ASSURED OF AT LEAST ONE LICENSE.

BUT SOMETIMES, I MEAN, RIGHT NOW, RICH, YOU SAID THAT THERE'S 12, SO IT HAS EXPANDED TO DIFFERENT PLACES.

[01:20:03]

SO THEY HAVE EXPANDED AS TO WHERE THEY ARE TO SOME OF THE, THE SMALLER CITIES, IN THE COMMONWEALTH.

AND DID Y'ALL HAVE TO CREATE A GAMING COMMISSION OR DID Y'ALL ALREADY HAVE ONE THAT EXISTED? THEY CREATED THAT WITH THE LEGISLATION.

AND THERE ARE, I THINK IT'S A FIVE MEMBER COMMISSION THAT'S APPOINTED BY, MAYBE 1 OR 2 SEATS BY THE GOVERNOR.

AND THE REST OF THEM BY, THE LEGISLATIVE CAUCUSES.

CARA DO YOU KNOW, DO WE WE ALREADY HAVE ONE.

DON'T WE HAVE A SOMETHING FOR THE LOTTERY? WE HAVE THE LOTTERY.

BUT I WILL TELL YOU, WE LOOKED AT LEGISLATION THAT'S BEEN FILED IN THE LAST COUPLE OF SESSIONS, AND PART OF THAT LEGISLATION INCLUDED THE CREATION OF A GAMING COMMISSION THAT WOULD OVERSEE THIS.

I DID NOTE, TOO, ON THE BILL SPONSORS AND AUTHORS OF BOTH THE THE CONSTITUTIONAL RESOLUTION THAT WOULD GO WITH IT.

AND THE BILL FILED ITSELF THAT THE COAUTHORS CO-SPONSORS WERE REPRESENTATIVE OF THE LARGE CITIES ACROSS ACROSS TEXAS SPEAKERS]. IS DALLAS FORT WORTH CONSIDERED ONE, OR IS DALLAS.

DALLAS, AND FORT WORTH THE PRIMARY BILL AUTHOR OF THE BILLS LAST SESSION WAS REPRESENTATIVE GARIN OUT OF FORT WORTH, BUT REPRESENTATIVE ANCHIA HAD SIGNED ON.

THERE WERE HOUSTON REPRESENTATIVES AS SIGNED ON IN SAN ANTONIO AS WELL FOR BOTH THE THE [INAUDIBLE] AND THE HOUSE AND SENATE BILLS AS WELL.

OKAY. SO THERE WILL BE MORE OF A METEOR DECK COMING TO US SO WE CAN UNDERSTAND THE, THE THE NUMBERS.

ON THE, WHOLE, YOU KNOW, HOLDING UP ON THE SCHEDULE, HOLDING UP SOMETHING FOR ONE ITEM.

I WOULD LIKE IT.

I THINK I'VE BEEN THE ONE SAYING THIS IN THE RESOLUTION THAT WE OPEN, THAT WHEN WE PASS IT, WE SAY THAT WE'RE GOING TO OPEN THIS BACK UP IN NOVEMBER TO ADD ANYTHING ELSE THAT COMES THROUGH IN CASE SOMETHING IN JULY HAPPENS AND WE NEED TO ADD SOMETHING.

I DON'T WANT TO LEAVE IT UP TO A FIVE SIGNATURE MEMO OR IT WAS TALK.

AND THERE'S NOTHING THAT GIVES US THE, THE AUTHORITY TO OPEN IT UP, BECAUSE WE'VE BEEN AROUND THIS BEFORE, AND SOMETIMES PEOPLE CAN BLOCK IT IF IT'S NOT IN WRITING. AND SO I WANT TO MAKE SURE THAT THAT WE CAN COME BACK AND LOOK AT IT BECAUSE AS WE KNOW, INTERIM CHARGES, YOU KNOW, THEY GET DONE, STUDIES HAPPEN AND ANYTHING CAN CHANGE BY THE TIME NOVEMBER COMES.

SO, I LOOK FORWARD TO THE FULL COUNCIL BRIEFING, BECAUSE I THINK, THE NUMBERS WILL BE A BIGGER STORY THAT TELLS A, THAT WILL GIVE DIRECTION IN WHICH WE NEED TO GO.

THANK YOU, THANK YOU.

I SUPPORT THAT REQUEST, TOO, OF BEING ABLE TO OPEN IT BACK UP.

CHAIRMAN MORENO. THANK YOU, MR. CHAIR. WE'RE THE NINTH LARGEST CITY, AND I BELIEVE THAT WE SHOULD HAVE A VIBRANT NIGHTLIFE THAT'S, FOR VISITORS AND RESIDENTS ALIKE WITHOUT ADDING A BURDEN TO OUR PUBLIC SAFETY. RIGHT.

GREG, CAN YOU TALK A LITTLE BIT ABOUT THE NIGHT TIME ECONOMY AND WHAT THAT CONTRIBUTIONS LOOK LIKE TODAY? AND I KNOW WE HAVE A STUDY GOING ON, BUT MAYBE HOW WE CAN ATTRIBUTE AND AGAIN, UNDERSTANDING THAT GAMBLING IS NOT JUST DONE AT NIGHT, BUT A BIG BULK OF IT IS.

AND SO CAN YOU HELP ME UNDERSTAND THAT NIGHT TIME ECONOMY? SURE. YOU DID SAY, CHAIRMAN, THAT WE ARE ACTUALLY IN THE PROCESS OF WORKING WITH THE, CONVENTION SERVICES DEPARTMENT OF THE CITY TO DO A STUDY ABOUT THE WHAT THE NIGHT TIME ECONOMY BRINGS TO THE CITY OF DALLAS.

AND THAT DATA IS THERE.

WE HAVE FOUND A SOURCE THAT CAN, THAT CAN TAKE AND, AND MEASURE OUT EXACTLY WHAT IS BEING SPENT AFTER 5:00 PM AND WHERE IT'S BEING SPENT.

SO WE'RE EXPECTING TO HAVE THAT IN PREPARATION FOR A CONFERENCE THAT WE'RE HAVING LATER ON IN APRIL TO BE ABLE TO ROLL THAT OUT.

BUT WE OBVIOUSLY MAKE THAT VERY AVAILABLE TO THE CITY COUNCIL.

BUT AS YOU CAN GUESS, THAT'S A BIG PART OF THE SELL OF, OF DALLAS.

IT'S, YOU KNOW, WE'RE WITHOUT GETTING TOO FAR DOWN A RABBIT HOLE.

IT'S A BIG REASON WHY PEOPLE COME HERE.

CITY IS KNOWN AS A SOPHISTICATED CITY.

IT IS A, A PLACE YOU BRING SOMEBODY TO HAVE A GREAT NIGHT OUT.

AND THAT IS ACTUALLY INFORMED BY, OBVIOUSLY, WHAT WE HAVE TO OFFER.

BUT FOR US, A CASINO WOULD BE A WONDERFUL THING FOR US TO HELP SELL AS ANOTHER AMENITY.

THE DEVIL WOULD BE IN THE DETAILS AND WE CAN GET INTO THAT.

BUT WHEN I WAS IN PITTSBURGH, I CAN TELL YOU THAT YOU SAW AN APPRECIATIVE INCREASE IN THE NUMBER OF HOTEL ROOMS, ESPECIALLY ON THE WEEKENDS THAT WERE SOLD.

THE EFFECT WAS A LOT EASIER TO MEASURE THERE THAN IT WOULD BE HERE JUST BY SHEER VOLUME.

BUT FOR ALL INTENTS AND PURPOSES, IT WAS A GREAT THING.

THE OTHER THING THAT WE CAN GET INTO, AND I SPOKE WITH CHAIRMAN WEST BEFORE THIS, IS THAT THE CASINO IN PITTSBURGH WAS OPENED WITHOUT AN ASSOCIATED HOTEL.

SO EVERYTHING THAT THEY BROUGHT IN WENT TO DIFFERENT HOTELS.

NOW THAT CASINO DOES HAVE THEIR OWN HOTEL.

BUT AT THE TIME IT DID NOT.

AND THAT'S ANOTHER COMPLETE PART OF THIS STUDY.

IN PREPARATION FOR COMING IN AND BRIEFING YOU, I TRIED TO TO DO SOME RESEARCH IN PREPARATION FOR THIS.

[01:25:01]

SO THERE'S A PLETHORA OF INFORMATION, BUT IT'S ALL PROTECTED BEHIND A PAYWALL.

BUT THERE'S A LOT OF CITIES FROM SMALL TO TO LARGE THAT HAVE GONE THROUGH THIS.

AND I'M SURE THAT WE COULD FIND LIKE CITIES TO, MEASURE OURSELVES AGAINST.

BUT, WHAT RICH AND I WERE TALKING ABOUT IS THAT WE DIDN'T SEE ANYTHING THAT WE WOULD SAY.

WOW. CASINO GAMING BROUGHT US THIS NEGATIVE, EFFECT, IN TERMS OF SOCIAL ISSUES OR THAT SORT OF THING.

IT JUST SEEMED TO TO, AS YOU SAID, STEP UP FROM SLOTS TO TO TABLE GAMING.

IT JUST SEEMED TO BE A NATURAL PROGRESSION.

BUT I DO KNOW THAT THE AMOUNT OF TAX THAT CAN BE TAKEN FROM A GOVERNMENT, FROM THE STATE, FROM THE LOCAL CAN BE QUITE HIGH.

IT DEPENDS ON WHO'S NEGOTIATING AND WITH WHO.

WELL, AND THANK YOU FOR THAT.

AND AS A RESTAURATEUR, I KNOW THAT IT'S ALSO THE IMPACT THAT IT'S GOING TO BE FOR OUR RESTAURANTS, FOR OUR HOTELS, FOR WHAT'S CURRENTLY EXISTING AND EVERYTHING ELSE THAT'S GOING TO GROW WITHIN THAT.

I DO THINK IT'S IMPORTANT TO TALK ABOUT LOCATION AND THE NUMBER OF, CASINOS THAT WILL BE ABLE TO COME FROM THAT.

SO WE WANT TO MAKE SURE THAT THEY'RE NOT IN, IN, TRADITIONALLY SINGLE FAMILY HOMES.

WE WANT TO LOOK AT, YOU KNOW, I'LL TAKE MY BET.

AND IT'S PROBABLY GOING TO BE, IN DISTRICT 2 OR 14, IN OUR CBD AREAS, MAKING SURE THAT, IT FITS WITHIN THE CHARACTERISTICS OF THOSE, NEIGHBORHOODS.

I THINK THAT'S ALL I HAVE.

I LOOK FORWARD, AS MENTIONED, TO A MORE IN DEPTH CONVERSATION.

BUT OVERALL I AM, SUPPORTIVE OF OF US EXPLORING AND, MAKING THIS A PRIORITY FOR DALLAS.

THANK YOU. ALL RIGHT.

ANYBODY ONLINE? ALL RIGHT, I APPRECIATE IT.

THANK YOU. THANK YOU, MR. FITZGERALD, FOR BEING HERE.

THANK YOU, MR. DAVIS, STAFF.

AND WE WILL MOVE ON.

THANK YOU. SO NEXT UP, WE ARE JUST SO MY COLLEAGUES KNOW, ITEM C WAS REQUESTED BY SOMEONE ON THE COMMITTEE.

I'M NOT. CAN'T REMEMBER WHO, BUT JUST IN THE INTEREST OF TIME, WE ARE GOING TO DELAY THAT UNTIL NEXT MONTH AND MOVE ON TO ITEM D, THE TEXAS PROPOSITION TWO PROPERTY EXEMPTION FOR CHILD CARE FACILITIES.

THAT IS A AGENDA ITEM, THAT WE'RE GOING TO BE VOTING ON SOON.

GOOD AFTERNOON COMMITTEE.

MY NAME IS JANETTE WEEDON, DIRECTOR OF BUDGET AND MANAGEMENT SERVICES.

TODAY I AM HERE TO DISCUSS THE NEW CHILD CARE EXEMPTION, WHICH IS PROPERTY TAX TWO THAT WAS VOTED INTO LAW BY THE VOTERS IN NOVEMBER OF 2023. PROPOSITION TWO AMENDS THE STATE CONSTITUTION TO ALLOW COUNTIES OR MUNICIPALITIES TO AUTHORIZE A PROPERTY TAX EXEMPTION ON ALL OR PART OF THE APPRAISED VALUE OF REAL PROPERTY THAT'S USED TO OPERATE CHILD CARE FACILITIES.

ON SLIDE NUMBER TWO, I'M GOING TO START WITH THE PRESENTATION OVERVIEW.

TALK ABOUT, PROPERTY TAX, THE BACKGROUND OF PROPERTY TAXES.

CURRENT PROPERTY TAX EXEMPTIONS.

AND PRIMARILY FOR THOSE LISTENING DISCUSS THE OPTIONAL CHILD CARE EXEMPTION, STAFF RECOMMENDATION AND NEXT STEPS.

MOVING ON TO SLIDE NUMBER THREE.

WHENEVER WE TALK ABOUT EXEMPTIONS, WE LIKE TO PROVIDE BACKGROUND ON PROPERTY TAXES.

PROPERTY TAXES ARE THE SINGLE LARGEST REVENUE SOURCE FOR THE CITY AT $1.4 BILLION.

THIS TOTAL REFLECTS THE 72%, OR $1.04 BILLION, THAT GETS ALLOCATED TO THE GENERAL FUND, AND 28%, OR $398.4 MILLION THAT GETS ALLOCATED ALLOCATED TO THE DEBT SERVICE FUND.

THE GENERAL FUND SUPPORTS GENERAL GOVERNMENT SERVICES SUCH AS POLICE, FIRE, STREET MAINTENANCE, PARKS, LIBRARIES, ETC.

AND THE DEBT SERVICE PORTION OF THE TAX RATE CAN ONLY BE USED TO PAY DEBT.

PROPERTY TAXES ARE PAID BY RESIDENTS AND THEY'RE BASED ON THREE FACTORS PROPERTY VALUES DETERMINED BY THE APPRAISAL DISTRICTS, EXEMPTIONS ALLOWED BY STATE LAW AND SET BY CITY COUNCIL, AS WELL AS THE TAX RATE THAT'S SET BY CITY COUNCIL.

ON SLIDE NUMBER FOUR.

THE TOTAL VALUE OF ALL PROPERTY IN THE CITY OF DALLAS TOTALS $198.3 BILLION, AND THEY'RE CATEGORIZED BY PROPERTY USE AND PURPOSE.

[01:30:04]

THE TOTAL TAXABLE VALUE THAT THE CITY GENERATES REVENUE FROM REPRESENTS THE MARKET VALUE OF PROPERTY, NET OF EXEMPTIONS.

WE HAVE 56.4 BILLION IN PROPERTY VALUE THAT IS EXEMPT FROM TAXATION.

THIS RESULTS IN REVENUE FOREGONE OF $409.4 MILLION.

OPTIONAL EXEMPTIONS CURRENTLY AUTHORIZED BY THE CITY OF DALLAS INCLUDE BOTH THE 20% HOMESTEAD EXEMPTION, AS WELL AS THE OVER 65 EXEMPTION.

ON SLIDE NUMBER FIVE, YOU CAN SEE THE GROWTH OF ALL EXEMPTIONS IN VARIOUS CATEGORIES OF THE LAST 16 AND 17 YEARS.

SO ON SLIDE NUMBER SIX, WE PROVIDE MORE DETAIL ON THE 20% HOMESTEAD EXEMPTION THAT IS CURRENTLY AUTHORIZED BY COUNCIL ON SLIDE NUMBER SIX.

THE 20% OPTIONAL EXEMPTION REFLECTS THE MAXIMUM AMOUNT ALLOWED BY STATE LAW.

THIS MAXIMUM HAS BEEN IN EFFECT SINCE APRIL OF 1988, AND THIS EXEMPTION IS OFFERED TO ALL RESIDENTIAL HOMEOWNERS.

ON SLIDE NUMBER SEVEN, WE PROVIDE A MORE A LITTLE MORE DETAIL ON THE OVER 65 DISABLED EXEMPTION.

THIS EXEMPTION OFFERS PROPERTY TAX RELIEF FOR RESIDENTIAL HOMEOWNERS THAT ARE AGED 65 OR OLDER.

THIS IS AN EXEMPTION THAT'S SET BY A DOLLAR AMOUNT AND IT REDUCES THE HOME'S TAXABLE VALUE.

THE CURRENT EXEMPTION OPTION IS $139,400.

THIS AMOUNT WAS INCREASED BY CITY COUNCIL IN JUNE OF LAST YEAR.

WE DO HAVE A FINANCIAL MANAGEMENT PERFORMANCE CRITERIA THAT REQUIRES AN ANNUAL REVIEW OF THIS EXEMPTION, AND THE NEXT UPDATE WILL BE PRESENTED TO THIS COMMITTEE IN MAY OF 2024.

NOW MOVING ON TO SLIDE NUMBER SEVEN.

THIS IS A NEW EXEMPTION CHILD CARE FACILITIES.

AS I MENTIONED, IT WAS APPROVED BY THE VOTERS IN NOVEMBER OF 2023.

THIS IS AN OPTIONAL EXEMPTION.

SO SIMILAR TO THE OVER 65 EXEMPTION, MUNICIPALITIES HAVE TO OPT IN OR APPROVE THE EXEMPTION TO MAKE IT AVAILABLE FOR THIS CLASS OF TAXPAYERS. THE DEFINITION OF A CHILD CARE FACILITY OR WHO'S ELIGIBLE IS DEFINED IN A TEXAS TAX CODE.

SO THE DEFINITION STATES THAT THE FACILITY MUST BE LICENSED BY HEALTH AND HUMAN SERVICES.

IT SPECIFICALLY STATES THAT YOU CANNOT BE RELATED TO A CHILD IN YOUR CARE.

THE TEXAS TAX CODE ALSO PROVIDES FURTHER LANGUAGE REGARDING A QUALIFYING CHILD CARE FACILITY.

THE OWNER OPERATOR MUST PARTICIPATE IN A TEXAS WORKFORCE COMMISSION TEXAS RISING STAR PROGRAM, AND AT LEAST 20% OF THE CHILDREN ENROLLED MUST RECEIVE SUBSIDIZED CHILD CARE SERVICES.

SO IF A MUNICIPALITY CHOOSES TO OPT INTO THIS EXEMPTION, THE AUTHORIZED AMOUNT MAY NOT BE LESS THAN 50%.

ON SLIDE NUMBER NINE.

THERE'S FURTHER DEFINITIONS OF WHO IS ELIGIBLE.

AGAIN, THE IN ORDER TO QUALIFY FOR THIS EXEMPTION, A PERSON MUST OR THE PROPERTY MUST BE OWNED AND OPERATED AS A QUALIFYING CHILDCARE FACILITY.

ALSO TO ENSURE THAT LANDLORDS PASS TAX SAVINGS ON TO CHILDCARE TENANTS IN THE LANDLORDS PROPERTY, THE PROPERTY OWNER MUST PROVIDE A NOTARIZED AFFIDAVIT TO THE CHIEF APPRAISER THAT THEY HAVE PROVIDED A DISCLOSURE DOCUMENT TO THE TENANT.

THIS DISCLOSURE DOCUMENT IS DESIGNED TO ENSURE THAT THE RENT CHARGED FOR THE LEASED PROPERTY FULLY REFLECTS THE PROPERTY TAX REDUCTION AND THIS EXEMPTION ONLY APPLIES TO THE VALUE OF THE PROPERTY THAT'S USED FOR THE CHILDCARE FACILITY.

REGARDING THE REVENUE FOREGONE, WE HAVE PREVIOUSLY SHARED IN A MEMO AT THE END OF DECEMBER THAT REVENUE FOREGONE MAY RANGE ANYWHERE FROM $339,000, WITH THE 50% EXEMPTION UP TO $675,000 WITH 100% RECOMMENDATION.

THIS IS BASED ON PROPERTY TAX DATA FROM DALLAS AND DENTON APPRAISAL DISTRICTS.

THIS DOES NOT INCLUDE DATA FROM COLLIN.

DEVELOPING THE REVENUE LOSS CALCULATION SOLELY BASED ON PROPERTY TAX IS NOT IDEAL.

PROPERTY TAX, PROJECTIONS MAY BE, OVERSTATED OR UNDERSTATED.

ALSO, LEASE PROPERTIES HAVE ACCESS TO THIS EXEMPTION.

SO THE PROPERTY TYPE MAY NOT APPEAR IN THE CURRENT DATA THAT WE HAVE FROM THE APPRAISAL DISTRICTS.

WE HAVE REACHED OUT TO THE TEXAS WORKFORCE COMMISSION FOR A LIST OF QUALIFYING PROPERTIES.

AND ONCE WE RECEIVE THAT INFORMATION, WE WILL LINK THAT DATA TO OUR APPRAISAL DISTRICT DATA TO FURTHER REFINE THE, REVENUE FOREGONE PROJECTION.

[01:35:01]

IF THE COMMITTEE CHOOSES TO MOVE FORWARD, WE WILL PREPARE AN AGENDA ITEM FOR CONSIDERATION ON FEBRUARY 14TH.

AND APPROVAL RESOLUTIONS ARE NOT DUE TO THE APPRAISAL DISTRICTS UNTIL JULY 1ST.

FOR IMPLEMENTATION IN THE UPCOMING TAX YEAR, WHICH IS OUR FISCAL YEAR 24-25 BUDGET.

ALSO, STAFF WILL PARTICIPATE IN AN UPCOMING WEBINAR ON THIS, NEXT WEEK.

AND IF WE RECEIVE ADDITIONAL INFORMATION, WE WILL PROVIDE A MEMO UPDATE.

THIS IS THE LAST SLIDE, SO I'M HAPPY TO ANSWER ANY QUESTIONS YOU MAY HAVE.

THANK YOU. AND I KNOW WE HAVE AT LEAST ONE IS IS A CLARIFICATION.

ARE YOU ASKING FOR US TO, VOTE ON A POSITION ON THIS ON THE AMOUNT OF, OF EXEMPTION IF WE CHOOSE TO GRANT IT? THAT IS CORRECT. CHAIR, I'M ASKING THAT IF YOU SUPPORT THE 50% RECOMMENDATION, THEN WE WILL MOVE FORWARD WITH THE AGENDA ITEM AT THAT AMOUNT ON FEBRUARY 14TH. OKAY. WELL, I KNOW WE'VE GOT SOME AT LEAST ONE QUESTION, AND I'LL JUST ASK ONE OF MY COLLEAGUES IF THIS IS SOMETHING YOU SUPPORT.

IF ONE OF YOU CAN DO A MOTION CHAIRWOMAN MENDELSOHN.

THANK YOU. I SUPPORT A 50% PROPERTY TAX EXEMPTION FOR THE CHILD CARE CENTERS AS DEFINED UNDER STATE LAW.

BUT WHAT I WAS WANTING TO ASK ABOUT IS, WILL THIS COME TO US AS A SEPARATE AMENDMENT, A SEPARATE AGENDA ITEM, MEANING THE TAX EXEMPTION WOULD BE ONE ITEM AND ZONING WOULD BE A SEPARATE.

SO THIS PARTICULAR AGENDA ITEM ONLY DEALS WITH THE, TAX RATE OR THE EXEMPTION, NOT ZONING.

SO THE, THE THAT'S REALLY THAT'S REALLY ALL I WANTED TO HEAR.

YES. THANK YOU. THANK YOU. I WOULD MOVE TO RECOMMEND TO THE FULL COUNCIL A 50% PROPERTY TAX EXEMPTION FOR CHILD CARE FACILITIES.

MOTION AND SECOND.

ANY COMMENTS? NOPE. ALL THOSE IN FAVOR SAY AYE.

ANY OPPOSED? MOTION CARRIES.

ALL RIGHT. NEXT ITEM. THANK YOU.

IT LOOKS LIKE OUR NEXT ONE IS ITEM E, REALLOCATION OF FUNDS FROM THE AMERICAN RESCUE PLAN ACT [INAUDIBLE].

SO THIS IS ALSO A BUDGET AND MANAGEMENT SERVICES ITEM.

SO AGAIN, JANETTE WEEDON, DIRECTOR OF BUDGET AND MANAGEMENT SERVICES.

JOINING ME HERE FOR THIS BRIEFING, SHAN WILLIAMS, ASSISTANT DIRECTOR OF GRANTS ADMINISTRATION.

AND WE ARE HERE TO PROPOSE OR TO DISCUSS A PROPOSED REALLOCATION OF AMERICAN RESCUE ACT RESCUE PLAN ACT FUNDING.

MOVING ON TO SLIDE NUMBER TWO.

WE'LL REVIEW THE BACKGROUND, THE PROPOSED REALLOCATION AND NEXT STEPS.

SO ON SLIDE NUMBER THREE.

I KNOW CITY COUNCIL MEMBERS ARE FAMILIAR WITH OUR FUNDING, OUR ARPA FUNDING.

BUT FOR THE LISTENING PUBLIC, I WANT TO REMIND EVERYONE THAT WE RECEIVED $355.4 MILLION IN STATE AND LOCAL FISCAL RECOVERY FUNDS FROM THE AMERICAN RESCUE PLAN ACT THAT WAS SIGNED INTO LAW IN MARCH OF 2021.

THE CITY RECEIVED ITS ALLOCATION IN TWO TRANCHES, ONE HALF IN MAY OF 2021 AND THE SECOND HALF IN MAY OF 2022.

CITY COUNCIL APPROVED THE INITIAL SPENDING FRAMEWORK IN SEPTEMBER OF 2021.

THIS SPENDING FRAMEWORK ASSUMED FUNDING FOR PROJECTS OVER THREE FISCAL YEARS, SO FISCAL YEAR 22 THROUGH FISCAL YEAR 24.

IN MAY OF 2023, AS PART OF THE FISCAL YEAR 23 MID-YEAR APPROPRIATION ORDINANCE, CITY COUNCIL APPROVED THE FIRST REALLOCATION OF ARPA FUNDS.

THE DETAILS OF THAT REALLOCATION ARE INCLUDED IN THE APPENDIX.

SLIDE NUMBER FOUR COMPARES THE INITIAL SPENDING FRAMEWORK TO WHAT WE ASSUMED BACK IN SEPTEMBER OF 2021 TO OUR FIRST REALLOCATION IN MAY OF 2023.

ON SLIDE NUMBER FIVE SO WE ARE HERE TODAY BECAUSE CURRENTLY WE HAVE 89 BUDGETED ARPA PROJECTS AND PROGRAMS THAT ARE IN VARIOUS STAGES OF DEVELOPMENT OR COMPLETION.

WE HAVE SOME PROJECTS THAT HAVE BEEN DELAYED, AND AS EVIDENCED IN THE FIRST REALLOCATION IN MAY, NEEDS AND PRIORITIES FOR OTHER PROJECTS HAVE CHANGED.

AS YOU KNOW, ALL FUNDS MUST BE OBLIGATED BY SEPTEMBER 30TH OF THIS YEAR OR THE FUNDS MUST BE RETURNED TO THE US TREASURY.

ADDITIONALLY, OBLIGATED FUNDS MUST BE SPENT BY SEPTEMBER OF 2026.

THE TRUE DEADLINE IS DECEMBER OF 2024 AND DECEMBER OF 2026.

BUT OUR, LOCAL DEADLINE HERE IS SEPTEMBER BECAUSE OUR FISCAL YEAR ENDS ON SEPTEMBER THE 30TH.

[01:40:03]

SO ON SLIDE NUMBER SIX.

WE ARE RECOMMENDING A REALLOCATION OF $161.2 MILLION OF ARPA FUNDING TO DALLAS FIRE RESCUE TO BE USED FOR, DFR PAYROLL.

DALLAS FIRE RESCUE PAYROLL IS AN ELIGIBLE EXPENSE, PER THE TREASURY GUIDANCE.

AS A POINT OF REFERENCE, IN FISCAL YEAR 23, WE CALCULATED ELIGIBLE PAYROLL OF $189 MILLION.

WE'VE IDENTIFIED $161.2 MILLION OF ARPA PROJECTS THAT MAY BE AT RISK OF OUR ARPA FUNDING OBLIGATION OR SPENDING DEADLINES.

THIS REALLY IS AN ACCOUNTING CHANGE.

WE PROPOSE ESTABLISHING A MULTI YEAR FUND WITH THE GENERAL FUND CAPACITY THAT'S CREATED BY REALLOCATING ARPA FUNDS TO SUPPORT DFR PAYROLL. WE ARE NOT PROPOSING ANY CHANGES TO PROGRAMS OR PROJECTS.

THE SCOPE OF THESE PROJECTS REMAIN THE SAME.

WE ARE ONLY CHANGING THE FUNDING SOURCE.

THE CHART ON SLIDE NUMBER SEVEN REFLECTS THE PROPOSED PROJECTS THAT WE WOULD PROPOSE MOVING TO A MULTI YEAR FUND.

AGAIN, WE ARE NOT RECOMMENDING CHANGES TO SCOPE.

THE FUNDING SOURCE IS THE ONLY CHANGE THAT WE ARE PROPOSING.

FOR MANY OF THESE PROJECTS, WE ARE MOVING THE BALANCE THAT REMAINS AS OF THE THIRD QUARTER REPORT THAT'S BEEN SUBMITTED TO US TREASURY.

THIS LIST INCLUDES PROJECTS THAT MAY NOT HAVE STARTED YET, PROJECTS THAT ARE UNDER UNDERWAY, BUT DELAYED.

AND SO, WE DID MAKE A FEW CHANGES TO THIS CHART AFTER POSTING AND IT WAS REALLY JUST THE SOURCE OF FUNDS IN TERMS OF THE REFERENCE TO OUR SPENDING FRAMEWORK.

SO, FOR SOME PROJECTS, WE HAD THE SPENDING FRAMEWORK LISTED AS FISCAL RECOVERY AND SUSTAINABILITY, WHEN IN FACT IT WAS ECONOMIC DEVELOPMENT OR HEALTH AND SAFETY. NOTHING ELSE ON THIS CHART CHANGED.

SO THE DEPARTMENT REFERENCED, AS WELL AS THE PROPOSED AMOUNTS REMAIN THE SAME.

ON SLIDE NUMBER EIGHT.

SO STAFF RECOMMENDS AMENDING ARPA TO REFLECT THE PROPOSED REALLOCATIONS.

SO AGAIN, WE WOULD REALLOCATE $161.2 MILLION IN ARPA FUNDING TO DFR PAYROLL.

BASED ON OUR FISCAL YEAR 23 ACTUALS, WE ARE CONFIDENT THAT WE WILL BE ABLE TO OBLIGATE $161.2 MILLION OF ELIGIBLE EXPENSES PRIOR TO THE SEPTEMBER 30TH DEADLINE.

WE RECOMMEND TRANSFERRING FUNDS FROM THE GENERAL FUND TO A NEW MULTI YEAR FUND.

THE ARPA PROJECTS AND PROGRAMS WOULD ACTUALLY MOVE TO THE NEW MULTI YEAR PROGRAM.

AGAIN, NO CHANGE IN PROJECT SCOPE OR DESCRIPTION, JUST MOVING THE FUNDING SOURCE.

AND THEN OF COURSE WE WOULD CHANGE, THE FUNDING SOURCE OF EXISTING CONTRACTS TO THE MULTI YEAR FUND.

AND WE ARE HERE TO RECEIVE GPFM FEEDBACK TODAY.

IF YOU RECOMMEND APPROVAL, WE WILL CONSIDER A BUDGET AMENDMENT ON FEBRUARY THE 28TH.

WE DO HAVE TWO APPENDICES INCLUDED IN THIS BRIEFING.

JUST A REMINDER, WE'VE INCLUDED THE MAY 2023 SUMMARY OF CITY COUNCIL APPROVED CHANGES THAT WERE PART OF THE FISCAL YEAR 23 MID-YEAR ORDINANCE.

AND THEN THE SECOND APPENDIX REFLECTS THE PROPOSED REALLOCATION.

AGAIN, WE UPDATED THE SPENDING FRAMEWORK COLUMN, BUT NO CHANGES TO PROPOSED REALLOCATIONS.

AND SO THIS CONCLUDES OUR PREPARED REMARKS.

WE ARE HAPPY TO ANSWER ANY QUESTIONS YOU MAY HAVE.

THANK YOU, MAYOR PRO TEM.

I GUESS ON PAGE SEVEN.

THE UNSERVED AREAS, THE WASTEWATER UNSERVED, UNSERVED AREAS $37 MILLION.

CAN YOU TALK A LITTLE ABOUT THAT? SO THIS IS THE PROGRAM THAT WAS ESTABLISHED IN FISCAL YEAR 2021.

THAT'S THE 47 AREAS THROUGHOUT THE CITY THAT DO NOT HAVE ACCESS TO CITY SERVICES.

WE ARE ABOUT HALFWAY SPENT OR MAYBE NOT HALF, MAYBE A QUARTER OF THE WAY SPENT ON THAT PARTICULAR, INITIATIVE.

AND SO, AGAIN, WE'RE NOT CHANGING THE SCOPE.

WE'RE NOT CHANGING THE APPROACH.

WE'RE NOT CHANGING CONTRACTS, WE'RE JUST CHANGING THE FUNDING SOURCE TO ENSURE THAT THOSE FUNDS ARE SPENT BY THE SPENDING DEADLINE.

SO SO THEREFORE THE $37 MILLION WILL BE SPENT.

IS THAT CORRECT? CORRECT.

[01:45:03]

SURE. CHAIRWOMAN MENDELSOHN.

THANK YOU. SO I JUST WANT TO MAKE SURE I HAVE THIS CORRECT.

SO THANK YOU FOR EXPLAINING IT.

I THINK YOU'RE VERY METHODICAL, BUT YOU STILL HAVE FINANCIAL TERMS. SO I'M GONNA SAY IT THE MOST BASIC WAY POSSIBLE.

YOU'RE BASICALLY SWAPPING OUT THE $161.2 MILLION WITH EXPENSES WE'VE ALREADY INCURRED FROM DFR MOVING IT INTO THIS MULTI YEAR FUND.

IS THAT CORRECT? MINOR CORRECTION.

SO WE ARE TAKING THE $161.2 MILLION.

WE ARE SWAPPING IT OUT.

BUT WE'RE GOING TO APPLY IT TO EXPENSES THAT WE HAVE ALREADY INCURRED AND THAT WE WILL INCUR THROUGH NOW.

FROM NOW THROUGH SEPTEMBER 30TH UP TO $161.2 MILLION.

OKAY. BUT IN MOVING IT TO A MULTI YEAR FUND, YOU NOW HAVE NO RESTRICTIONS LIKE YOU DO WITH THE ARPA FUNDS.

IS THAT CORRECT? SO THAT'S REALLY NOT THE INTENT.

THAT'S CORRECT.

BUT THAT'S NOT THE INTENT.

SO THE INTENT IS REALLY TO KEEP THE PROJECTS AS THEY EXIST NOW.

BUT TO ENSURE THAT WE MEET THE OBLIGATION DEADLINE OF SEPTEMBER 30TH, 2024 AND THE SPENDING DEADLINE OF 2026.

SO I'M GOING TO SAY I 100% AGREE WITH THE REASON YOU'RE DOING THIS.

AND WE NEED TO ENSURE THAT WE KEEP EVERY DOLLAR THAT WAS ALLOCATED TO US, AND USING IT FOR DFR EXPENSES WAS AN ELIGIBLE EXPENSE ANYHOW.

SO TO ME, THIS IS A NO BRAINER, AND THANK YOU FOR BRINGING IT FORWARD TO ENSURE THAT WE'RE NOT AT RISK.

BUT WE ALSO HAD A LOT OF, STRINGS ATTACHED TO WHAT COULD BE USED AND WHAT COULDN'T BE USED WITH THESE ARPA FUNDS, WHAT WHAT IT COULD AND COULDN'T BE USED FOR.

AND BY MOVING IT TO THE MULTI FUND BASED ON ASKING FOR THE REIMBURSEMENT ON FIRE NOW AND THIS FUNDING POT BEING AVAILABLE, YOU'VE REMOVED THOSE STRINGS.

IS THAT CORRECT? SO THE THE FEDERAL FUNDING HAD, CONDITIONS IN TERMS OF, YOU KNOW, USE OF FUNDS, VERY SPECIFIC LEGISLATIVE TEXTS.

SO, CORRECT.

MOVING IT TO A MULTI YEAR FUND, REMOVES SOME OF THE, THE REQUIREMENTS.

BUT AGAIN, THE RECOMMENDATION IS TO NOT CHANGE THE PROGRAMS AND PROJECTS THAT WERE RECOMMENDED BECAUSE REALLY THERE'S STILL A NEED DEPARTMENTS ARE WORKING TO ADDRESS THOSE NEEDS IN THE COMMUNITY.

IT'S JUST FOR WHATEVER REASON, SOME PROJECTS HAVE BEEN DELAYED, IN TERMS OF THE START AND REFINING THE SCOPE AND, RESOURCES TO IMPLEMENT THOSE PROJECTS.

AND SO WE JUST REALLY WANT TO MAKE SURE THAT WE MEET THE OBLIGATION DEADLINE AND THE SPENDING DEADLINE.

OKAY. WELL, I APPRECIATE THAT STAFF'S RECOMMENDATION IS TO STAY THE COURSE WITH WHAT WAS ORIGINALLY CONSIDERED UNDER VERY STRICT GUIDELINES.

BUT WE HAVE A DIFFERENT SITUATION TODAY.

AND, I'LL JUST SAY THAT THIS MAKES AVAILABLE THE OPPORTUNITY FOR A PENSION PAYMENT TO POLICE FIRE PENSION.

THIS MAKES AN OPPORTUNITY TO DO A RETENTION BONUS FOR OUR POLICE OFFICERS OF OTHER YEARS.

SO WE HAVE DONE IT FOR OUR MOST SENIOR OFFICERS.

BUT YOU KNOW WHAT? WE CAN'T LOSE ANYBODY AND WE MIGHT WANT TO RECONSIDER HOW WE'RE USING THESE FUNDS.

THERE'S ALREADY BEEN A MEMO THAT MAYOR PRO TEM AND I SENT OUT ABOUT BROADBAND AND OUR CONCERNS WITH HOW THAT MONEY IS BEING SPENT.

THIS GIVES AN OPPORTUNITY TO PULL BACK, MAKE SURE WE'RE TAKING CARE OF THE WORK WE WANTED TO ACCOMPLISH WITH BROADBAND, BUT NOT THE PARTS WERE NOT AS INTERESTED IN AND THEN USE THAT FOR FUNDS PERHAPS LAST NIGHT, I'M SORRY.

AT HOUSING LAST WEEK, THERE WAS A DISCUSSION ABOUT SANCTIONED ENCAMPMENTS.

PERHAPS DOLLARS COULD BE USED TO INITIALIZE THAT PROPERTY WITH BATHROOMS SHOWERS.

SOME SORT OF TINY HOME THAT HAS CLIMATE CONTROL INDOORS.

THIS IS AN OPPORTUNITY TO TAKE CARE OF SOME OF THE MOST PRESSING PROBLEMS THAT ARE FACING US, THAT WE WERE NOT ABLE TO USE THIS FOR PREVIOUSLY AND SO WEREN'T EVEN CONSIDERED. AND SO I WOULD LOVE TO HAVE THE FULL COUNCIL HAVE THIS DISCUSSION ABOUT, NOT ABOUT SHOULD WE, SHOULD WE USE THE FIREFIGHTER EXPENSES ALREADY INCURRED? I THINK THERE'S NO QUESTION THAT ANYBODY REASONABLE WOULD AGREE TO THAT.

BUT THE QUESTION NOW IS, WHAT DO YOU DO WITH THIS $161 MILLION?

[01:50:04]

I DON'T THINK THERE WOULD BE AN INTEREST IN CHANGING THAT.

BUT I DO THINK THERE MAY BE SOME OTHER PROJECTS THAT THAT COULD BE LOOKED AT, AND I WOULD LOVE TO HEAR MY COLLEAGUES FEEDBACK ON THAT.

THANK YOU. THANK YOU.

AND JUST AS A FOLLOW UP COMMENT.

SO, OUR INITIAL RECOMMENDATION AS THE PROPOSED REALLOCATION, WE ARE RECOMMENDING THAT WE MOVE FORWARD TO INITIATE THIS WITH THE FEBRUARY 28TH AGENDA.

BUT WE DO RECOGNIZE THAT THERE MAY BE A NEED TO PROPOSE DIFFERENT REALLOCATION.

AND SO WE WOULD RECOMMEND THAT WE MAKE THAT PART OF THE MID-YEAR BUDGET APPROPRIATION DISCUSSION.

SO IN RESPONSE TO THAT, I'LL SAY THE WAY THAT THAT MID-YEAR BUDGET APPROPRIATION USUALLY OCCURS, THERE'S NOT A LOT OF INPUT FROM EITHER THIS COMMITTEE OR THE FULL COUNCIL. IT JUST COMES AS A MANAGEMENT RECOMMENDATION, OFTEN TO COVER EXPENSES THAT ARE ABOVE BUDGET.

AND SOMETIMES THAT'S POLICE OVERTIME, SOMETIMES THAT'S FIRE OVERTIME, OR OTHER UNFORTUNATE EXPENSES THAT WERE NOT BUDGETED FOR.

BUT I'M SAYING WHEN YOU START TALKING ABOUT $161 MILLION THAT SUDDENLY DON'T HAVE REQUIREMENTS THAT ONCE DID, I THINK THAT'S A FULL COUNCIL DISCUSSION, BECAUSE THERE'S A LOT OF THINGS THAT THIS COUNCIL IS FACED WITH AND TALKING ABOUT THAT THIS MONEY MIGHT BE CONSIDERED DIFFERENTLY THAN IT WAS BACK IN COVID DAYS.

THANK YOU. THANK YOU.

MAYOR PRO TEM, DID YOU HAVE ANYTHING ELSE? I THINK THAT CHAIRMAN MENDELSOHN SAID IT ALL.

OKAY. SO IS THE THE REQUEST THEN AND THEN I'M GOING TO CLARIFY THAT.

BUT LET ME CLARIFY REAL QUICK.

SO THERE'S A REQUEST FOR LIKE A FULL COUNCIL DISCUSSION ON THIS.

THAT'S WHAT I BASICALLY HEARD.

ALL RIGHT. GO AHEAD. WELL AND I DO AGREE BECAUSE THERE'S SOME THINGS ON HERE THAT MAY NOT BE APPLICABLE TO TODAY.

BUT WHEN YOU LOOK AT THE BIG POTS OF MONEY, I MEAN, YOU LOOK AT THE DIGITAL DIVIDE, YOU LOOK AT WATER FOR UNDERSERVED AND YOU LOOK AT DIRECT ASSISTANCE FOR CONNECTION FEES AND HOME REPAIRS.

I MEAN, THAT IS THE THE BIG STUFF.

SO YOU MAY YOU REALLY DON'T HAVE $161, BUT I DO THINK IT'S WORTH THE CONVERSATION OF, HEY, DO WE REALLY NEED MARKETING AND OUTREACH ON FISCAL RECOVERY AND SUSTAINABILITY? YOU KNOW, WHICH IS ONLY A $750, YOU KNOW WHAT I MEAN? SO, SO WHILE YES, IT'S A BIG POT OF MONEY, A LOT OF THE ITEMS THAT HAVE BEEN EARMARKED HAVE A HUGE CHUNK.

AND SO IT MAY BE A VALID CONVERSATION TO HAVE, DO WE STILL NEED $1 MILLION FOR OCA TO DO LIBRARY, BLACK BOX UPGRADE, CULTURAL CENTER UPGRADES, ETC.? BECAUSE THAT COULD BE IN THE BOND PACKAGES, RIGHT? WHO KNOWS. SO IT MAY BE WORTH THAT CONVERSATION, BUT I DON'T THINK WE'RE GOING TO WHITTLE IT DOWN AND MAKE A BIG PAYMENT TO SOMETHING FOR $161.

THANK YOU FOR THAT FEEDBACK.

AND I THINK THAT'S WHERE I WAS GOING WITH MY COMMENT THAT, I WOULD RECOMMEND THAT OUR FIRST APPROACH IS TO MAKE THE FIRST REALLOCATION, WHICH IS THE $161.2, AND THEN WE CAN HAVE THOSE CONVERSATIONS ABOUT, DIFFERENT PROJECTS, ON THIS LIST AS PART OF THE SECOND CONVERSATION. I THINK THAT'S THE ISSUE, THOUGH, IS THERE THAT THE THE COMMITTEE'S REQUESTING A FULL COUNCIL BRIEFING BEFORE WE EVEN MAKE THAT ALLOCATION.

SO, I WOULD JUST ASK STAFF TO GET BACK WITH US BEFORE WE GO TO A VOTE ON THAT.

IT MAY BE TOO LATE, BUT BUT THAT'S FINE.

IT'S IN FEBRUARY. OKAY, THEN LET'S DO THAT AND WE'LL GO FROM THERE.

THANK YOU, THANK YOU.

ALL RIGHT. THE NEXT ONE AND I WANT TO TRY TO POWER THROUGH THIS IS, THE REST OF THESE ITEMS DISCUSSION ITEM F IS A IT WAS REQUESTED BY THE CITY AUDITOR. AND THEN, YOU KNOW, AFTER A DISCUSSION WE'D HAD TOGETHER.

I'LL LET MARK PRESENT THIS, IF YOU DON'T MIND COMING UP OR IT NOT REALLY A PRESENTATION, BUT A DISCUSSION.

I'M GOING TO SAY THIS IN LAYMAN'S TERMS. AND THEN IF YOU WANT TO CLARIFY ANYTHING I SAID, LET ME KNOW.

THE THERE WAS SEVERAL YEARS AGO, A REQUEST BY COUNCIL FOR THE AUDITOR TO AUTOMATICALLY DO AN ATTESTATION, WHICH IS LIKE A MINI AUDIT OF ANY PROCUREMENT ITEM THAT WAS OVER $50 MILLION, WHICH WAS ANTICIPATED TO BE ONE PROJECT EVERY YEAR OR TWO.

WELL, SINCE THAT TIME WE'VE INCURRED INFLATION HAS GONE WAY UP, CONSTRUCTION PRICES HAVE GONE WAY UP, AND NOW IT'S THE AUDITOR IS REVIEWING THREE A YEAR UPWARD OR ONE A YEAR, THREE A YEAR, AND WHICH IS REALLY SIGNIFICANTLY INCREASING HIS COST AND

[01:55:02]

SO THE REQUEST HERE IS WHETHER WE WANT TO, RAISE THAT THRESHOLD FROM $50 MILLION TO ANOTHER, A HIGHER LEVEL.

IS THAT CORRECT? MARK SWANN, CITY AUDITOR.

YES. YOU READ THE MEMO, SO THAT'S GOOD.

BUT THE REQUEST IS FOR A RECOMMENDATION TO THE CITY MANAGER, TO INCREASE THE AMOUNT.

IT'S IT'S INSIDE AN ADMINISTRATIVE DIRECTIVE.

THAT'S. THE PROPONENT IS THE CITY MANAGER.

OKAY. AND WHAT WOULD BE, WHAT WOULD KIND OF BRING US ON PAR WITH INFLATION LEVEL NOW TO BE $50 MILLION BACK IN WHEN THIS WAS ORIGINALLY PASSED? WELL, OUR RECOMMENDATION IS TO RAISE IT TO $100 MILLION.

OKAY. AND THEN ALSO TO PROVIDE EXEMPTIONS FOR PROJECTS THAT ARE HAVE HAD A ATTESTATION IN THE DEPARTMENTS, HAVE HAD A CONSTRUCTION PROCUREMENT ATTESTATION IN THE LAST THREE YEARS.

ON A RISK BASED AS LONG AS IT'S LESS THAN $150 MILLION.

SO BASICALLY ANYTHING OVER $150 MILLION, WE WOULD STILL DO ANY OF THE DEPARTMENTS NEVER HAD AN ATTESTATION AND IT'S OVER $100 MILLION WE WOULD DO IT.

ONE OF THE THINGS IS LIKE WE JUST FINISHED ISSUING THE PACKET TODAY WAS THE, PAVEMENT RESURFACING, WHICH WAS RIGHT AT $100 SOMETHING MILLION, SINCE AND THAT'S GOING TO BE A RECURRING ANTICIPATED YEAR AFTER YEAR.

SO IF WE JUST DID ONE LAST YEAR, WE WOULDN'T HAVE TO DO THAT ONE NEXT YEAR BECAUSE THEY ALREADY HAD A AN ATTESTATION FORM.

OKAY. THANK YOU.

CHAIRWOMAN. THANK YOU.

SO IN, HI MARK, ON YOUR, ATTACHMENT A, YOU HAVE TWO OF THESE THAT YOU DID THAT ARE UNDER $50 MILLION.

SO I WAS JUST WONDERING WHY LIKE, WHY DID WE DO THE AIRPORT TAXIWAY RESURFACING AND THE DAM REHAB? WHY WOULD YOU HAVE DONE THAT ATTESTATION? THAT'S ALWAYS AN INTERESTING QUESTION.

IT'S BASED ON ESTIMATED PROCUREMENT.

AND SO AT THE TIME IT WAS ESTIMATED IT WOULD BE OVER $50 MILLION.

BUT IT ACTUALLY CAME IN LESS.

AND SO WE STILL COMPLETELY UP.

SO I GUESS THIS WAS PASSED IN 2018 WITH THE $50 MILLION.

SO I DON'T KNOW THAT ANYONE WOULD THINK THAT THE $50 MILLION IN PRESENT VALUE IS $100 MILLION.

I MEAN, THAT'S A PRETTY BIG JUMP.

WELL, IF YOU JUST SAW A CONSTRUCTION WHERE THEY HAD ON THE PRESENTATION EARLIER, LIKE 25% INCREASE JUST IN PAVING AND OTHER CONSTRUCTION COSTS HAS GONE UP A LOT HIGHER THAN NORMAL INFLATION.

BUT HAS IT GONE UP 100%? I CAN COME BACK WITH A MORE PRECISE NUMBER.

OKAY. WELL, I MEAN, I'M NOT I'M NOT NECESSARILY OPPOSED TO GOING TO $100 MILLION, BUT THE PART THAT REALLY SORT OF RAISED A FLAG FOR ME WAS THE SECOND PART.

SO, OKAY, IF YOU MOVE THAT THRESHOLD TO $100 MILLION, YOU REALLY WOULD HAVE ONLY NOT DONE ONE OF THESE, RIGHT? BECAUSE, WELL, TWO OF THEM ARE UNDER $50 THAT YOU HAD.

SO IT'S REALLY JUST THE ANNUAL STREET RESURFACING.

BUT I GOT TO TELL YOU.

SO THAT'S AN $85 MILLION ONE.

BUT I WANT YOU TO DO THAT.

THAT SEEMS LIKE A VERY IMPORTANT ONE.

SO THAT'S WHY I'M LIKE, WELL, IS $100 MILLION THE RIGHT NUMBER? MAYBE IT'S $75 MILLION.

RIGHT. BECAUSE.

ANNUAL STREET RESURFACING.

WE SHOULD PROBABLY BE DOING FOLKS.

OKAY. BUT SO THE THE PART THAT GAVE ME PAUSE WAS THE SECOND PART OF YOUR RECOMMENDATION.

SO YOUR RECOMMENDATION WAS TO MOVE TO $100, BUT THEN ALLOW A RISK BASED EXEMPTION FOR PROJECTS UNDER $150 MILLION IF THE REQUESTING DEPARTMENT COMPLETED AN ATTESTATION WITHIN THE LAST THREE YEARS.

SO WHY WOULD HAVING DONE THIS THREE YEARS EARLIER, EVEN IF IT'S A DIFFERENT ITEM, WHY WOULD THAT SOMEHOW LOWER THE RISK? WELL, THEY'VE GONE THROUGH THE PROCESS BEFORE, AND, FROM AN INFESTATION PERSPECTIVE OF THE DIFFERENT PROCEDURES. AND HOPEFULLY THEY'VE LEARNED THROUGH THAT PROCESS.

AND MOST OF OUR CURRENTLY WE HAVE VERY FEW EXCEPTIONS TO THE PROCUREMENT PROCESS.

SO FOR THE EXCEPTIONS THAT YOU OUTLINED ON THE SECOND PAGE OF YOUR MEMO, YOU HAD THREE WHERE PEOPLE WERE OPENING BIDS TOO EARLY BEFORE OPENING TIME.

WERE ANY OF THOSE THE SAME DEPARTMENT? WANT TO PHONE A FRIEND? SURE. HELLO DAN [INAUDIBLE] CITY AUDITOR'S OFFICE.

THE TWO WERE FROM ONE DEPARTMENT AND ONE WAS FROM ANOTHER DEPARTMENT.

SO I GUESS THAT'S MY POINT, IS THAT JUST BECAUSE THEY KNOW DOESN'T MEAN THEY DON'T DO IT.

AND THAT'S REALLY WHAT WE NEED YOU THERE FOR, BECAUSE HOW WOULD WE EVER KNOW THAT? AND IN THIS CASE, I MEAN, THAT'S ACTUALLY BREAKING STATE LAW TO DO THAT.

SO I WOULD BE VERY OPEN TO INCREASING THAT AMOUNT, WHETHER IT'S $75 MILLION OR, YOU KNOW, IF THE COMMITTEE WANTED TO DO $100 MILLION, I'D PROBABLY JUST GO ALONG WITH THAT.

[02:00:07]

AND, YOU KNOW, WE'VE HAD TOO MANY FEDERAL INVESTIGATORS IN CITY HALL FOR US TO JUST SAY IT'S NOT A PROBLEM.

THANK YOU. ARE YOU LOOKING FOR A RECOMMENDATION TODAY? IT WOULD BE NICE, BUT WE CAN WAIT AND SEE.

WELL, I'M HAPPY TO.

WE'RE HAPPY TO GET RID OF THE RISK BASE THAT WAS JUST A PROPOSAL.

BUT. AND THEN WE THOUGHT [INAUDIBLE] WE THOUGHT YOU MIGHT BE GOING SOMEWHERE BETWEEN BUT THAT'S ONE.

AND MY THOUGHTS ON, LIKE, THE ANNUAL STREET RESURFACING.

I AGREE WITH CHAIRWOMAN.

LIKE THAT IS SOMETHING I WOULD LIKE TO SEE EVERY YEAR.

I THINK THAT COULD BE PART OF THE AUDIT PLAN THOUGH, WHERE WE INCLUDED ON THERE INSTEAD OF IT JUST THIS, THESE THINGS THAT ARE JUST AUTOMATIC BASED ON THE NUMBER TO ME, THAT'S THAT'S NOT A RESPONSIBLE WAY TO, TO BE REQUIRING THIS.

SO, I KNOW I WOULD, I WOULD LEAN TOWARDS HIS RECOMMENDATION OF $100 MILLION AND I WOULD SUPPORT YOUR REQUEST TO TAKE THAT RISK BASED OFF.

OKAY. CAN THAT BE A MOTION.

I MOVE TO INCREASE THAT TO $100 MILLION PER YOUR RECOMMENDATION AND THE CHAIRS LEADERSHIP POSITION.

BUT REMOVE THE RISK BASED ASSESSMENT EXEMPTION.

THANK YOU, THANK YOU.

SO WE HAVE A MOTION AND A SECOND.

ALL THOSE IN FAVOR SAY AYE.

AND UP TO TWO YEAS ON THE ON THE VIRTUAL.

WE ARE GOOD TO GO. THANK YOU, THANK YOU.

MOVE THROUGH THE MEMOS.

FIRST ITEM I KNOW MY COLLEAGUE SAID THERE WAS NO QUESTIONS ON ITEM I AND ITEM N, AS IN NANCY.

SO WE CAN LET ANYONE WHO'S HERE FOR THOSE CAN STAND DOWN.

ITEM G, ANY QUESTIONS? WHILE YOU'RE PULLING THAT UP, I'M GOING TO GO AHEAD AND SKIP THE GPFM FORECAST TOO.

I'M GOING TO SEND OUT SOME INFORMATION TO YOU GUYS THOUGH.

ON THAT ON THE G ON THE FORECAST.

OKAY. ARE WE ON G.

WE'RE ON G. IS ANYBODY HERE FROM DART? IS CHRIS ONLINE? DFW AIRPORT IS G.

I SAID DART I'M SORRY.

YEAH. CHRIS ANYWAY MY QUESTION IS BECAUSE WE'VE BEEN TALKING ABOUT HOURLY RATES AS FAR AS EMPLOYEE, CONTRACTORS AND EMPLOYEES AT DFW.

HEY, CHRIS, GOOD TO SEE YOU.

AND SO MY QUESTION IS, WILL AN HOURLY RATE BE BUILT IN, AS YOU ARE, FOR YOUR CONTRACTORS, AS YOU, YOU YOU, IMPLEMENT THIS, THE BONDS AND IMPLEMENT THE CONSTRUCTION PLAN? WELL, IF IT'S A FEDERAL MONEY, WE'LL OF COURSE HAVE THE FEDERAL CLAUSES IN THERE.

BUT I'M NOT AWARE IN OUR CONSTRUCTION CONTRACTS THAT WE HAVE ANY MINIMUM WAGE REQUIREMENTS.

FOR YOUR CONTRACTORS? YEAH, I'M NOT AWARE OF THAT.

WE CAN FOLLOW UP ON THAT AND MAKE SURE.

BUT I'M NOT AWARE OF THAT.

DO YOU MIND THERE'S BEEN DISCUSSION AROUND THE HORSESHOE ABOUT, WAGES AND HOURLY.

AND I THINK EVEN DURING OUR INTERVIEWS OF DFW BOARD MEMBERS THAT CAME UP, AND I JUST WANTED TO, PUT IT BEFORE YOU.

OKAY, I WILL FOLLOW UP.

THANKS, CHRIS.

CHAIRWOMAN. MY QUESTION IS REALLY ABOUT, REVENUE THAT YOU'RE RECEIVING, THAT I DON'T KNOW IF YOU'RE PLEDGING AGAINST ANY OF THESE BONDS, BUT, FOR PROPERTY THAT YOU OWN THAT IS OUTSIDE YOUR SECURE AREA THAT YOU HAVE LONG TERM GROUND LEASES FOR, IS THAT ANY PART OF THE REVENUE YOU'RE PLEDGING AGAINST THESE BONDS? OH, WE'RE PLEDGING 100% OF THE REVENUES.

GROSS REVENUE PLEDGE OF AIRPORT REVENUES.

SO THAT WOULD BE EVERYTHING WE GET FROM THE AIRLINES AND EVERY OTHER SOURCE WE GET.

OKAY. WOULD YOU BE ABLE TO PROVIDE TO US A BREAKDOWN OF, RENT INCOME YOU RECEIVE FROM NON SECURED AREAS OF THE AIRPORT FOR LONG TERM GROUND LEASES? SURE. OKAY.

THANK YOU SO MUCH.

THAT'S MY ONLY QUESTION.

THANK YOU. AND I'VE BEEN INFORMED WE'RE GOOD ON ITEM J TOO SO WE'RE NOT DOING THAT ONE.

MOVING ON TO ITEM SO THAT WHAT'S LEFT IS ITEM H, ITEM L AND ITEM M, ITEM H, CHAIRWOMAN.

YES. THANK YOU.

MY QUESTION FOR THIS ONE IS.

SO I'M NOT SURE WHO IS HERE TO ANSWER QUESTIONS.

BUT. SO THIS THIS ITEM IS MASSIVE.

IT'S $683 MILLION, BUT IT LOOKS LIKE ONLY $273 MILLION OF IT IS NEW MONEY.

AND SO YOU'VE GOT $55 MILLION FOR THE TRINITY EAST SETTLEMENT.

AND THEN YOU'VE GOT $410 MILLION FOR REFUNDING.

[02:05:05]

IS THAT IS THAT CORRECT? GOOD AFTERNOON. MY NAME IS FELICIA.

I'M THE ADMINISTRATOR FOR THE CITY OF DALLAS.

I BELIEVE YOUR QUESTION WAS THE BREAKOUT OF THE $410 MILLION.

IS THAT CORRECT? [INAUDIBLE] SO ALL TOGETHER, YOU'RE TALKING ABOUT $683 MILLION, CORRECT? RIGHT. AND SO YOU GOT $55 MILLION FOR THE LEGAL SETTLEMENT.

CORRECT? RIGHT. SO THAT'S NEW.

YES. YOU'VE GOT $410, WHICH IS REFINANCING AND IMPROVEMENTS.

CORRECT THAT CONTAINS A $134.5.

THAT'S THE BREAKDOWN OF THE REMAINING 2017 BOND PROGRAM.

OKAY. WELL SO THE REMAINING BOND PROGRAM YOU HAVE $218 MILLION WRITTEN DOWN.

IS THAT RIGHT. THAT IS FOR CERTIFICATES OF OBLIGATION.

THOSE WERE FOR 2017 BOND PROGRAM COST OVERRUNS AND OTHER INITIATIVES AND PROJECTS.

SO THEN WHAT IS THE ADDITIONAL NEW DOLLARS OF THE $410? THE ACTUAL THE NEW DOLLARS IS THE $134.5.

AND THE REMAINING IS REFUNDING ELIGIBLE 2014 G.O.

BONDS IN APPROXIMATELY $275 MILLION.

OKAY, BUT THE PART I STILL AM TRYING TO GET TO IS I GET THE REFUNDING PART.

WHAT IS THE NEW MONEY FOR THAT'S PART OF THE $410? OH SURE, THOSE ARE FOR THE REMAINING FUNDS ALLOWED AND ALLOCATED FOR THE BOND PROPOSITIONS.

GOT IT. THANK YOU.

THAT'S EXACTLY WHAT I WAS ASKING.

THAT WAS MY ONLY QUESTION. THANK YOU.

OKAY, GREAT. THANK YOU SO MUCH.

NEXT IS ITEM L AS IN LIMA BUDGET ACCOUNTABILITY REPORT.

[INAUDIBLE] HI I WANTED TO ASK YOU ABOUT PAGE TEN.

YOU'RE SHOWING THE FINANCIAL FORECAST REPORT AND ITEM 14, WHICH IS DEBT SERVICE.

I WAS WONDERING IF YOU COULD EXPLAIN THAT ITEM.

SURE. SO DEBT SERVICE REVENUES ARE PROJECTED OVER BUDGET BY $1.8 MILLION.

THAT'S PRIMARILY DUE TO, A DEBT SERVICE PAYMENT FOR SANITATION'S DEBT.

SO IT WAS ORIGINALLY BUDGETED IN FISCAL YEAR 23, WASN'T REALIZED.

AND SO NOW IT WILL BE REALIZED IN 24.

SO IT'S NOT BUDGETED. SO IT'S OVER BUDGET.

IT'S MORE REVENUE.

ON THE EXPENSE SIDE, WE ORIGINALLY ASSUMED, MASTER LEASE FOR A NUMBER OF PROJECTS IN OUR CAPITAL PLAN FOR EQUIPMENT.

WE, PIVOTED TO EQUIPMENT NOTES.

THE MASTER LEASE ASSUMPTION WAS TEN YEAR DEBT FOR OUR FIRE APPARATUS, EQUIPMENT, NOTES OF FIVE YEAR DEBT.

AND SO THERE'S A HIGHER PRINCIPAL PAYMENT.

MORE THAN WE REALIZED.

BUT WE PAY THE DEBT OFF SOONER.

OKAY. AND THEN IF WE COULD GO TO, PAGE 12.

THIS IS ABOUT GENERAL OBLIGATION BONDS.

AND THIS IS ABOUT OUR DIFFERENT BOND PROGRAMS. AND SINCE WE'RE, YOU KNOW, KNEE DEEP IN BOND DISCUSSION FOR 2024, WHEN I LOOK AT 2017 W HEN YOU LOOK AT THE AMOUNT THAT'S CURRENTLY ENCUMBERED VERSUS WHAT'S UNENCUMBERED, I MEAN, IT'S 20% OF THE ENTIRE BOND PROPOSITION THAT IS NOT EVEN ENCUMBERED YET, AND 36% THAT'S ENCUMBERED AND UNENCUMBERED, BUT NOT SPENT.

IS THAT RIGHT? SO MORE THAN A THIRD OF THE 2017 BOND HASN'T ACTUALLY BEEN SPENT.

IS THAT RIGHT? SO THE UNENCUMBERED AMOUNT CORRECT HAS NOT BEEN SPENT.

SO THIS IS MORE THAN SIX YEARS AGO THAT THIS PASSED.

AND WE HAVEN'T EVEN ENCUMBERED 20% OF IT, OR SPENT MORE THAN A THIRD OF IT.

I KNOW YOU'RE NOT THE BOND OFFICE.

I'M JUST. AND I WILL, YOU KNOW, ADD THIS DISCLAIMER THAT THE TABLES ABOVE REFLECT EXPENDITURES AND ENCUMBRANCES THAT ARE INCLUDED IN THE FINANCIAL SYSTEM. SO THEY DON'T INCLUDE COMMITMENTS THAT HAVE BEEN MADE BUT NOT RECORDED.

SO THIS REPORT IS THROUGH NOVEMBER.

AND IT'S JANUARY.

SO IT'S POSSIBLE THAT MORE HAS BEEN ENCUMBERED, AS YOU KNOW, AS A RESULT OF ACTIVITIES THIS FISCAL YEAR.

[02:10:07]

SO WE HAVE HAD, YOU KNOW, SIX MORE WEEKS, I GUESS.

AND THEN WHEN YOU ADD 2017 BOND, 2012 BOND AND 2006 BOND TOGETHER, IT LOOKS LIKE, 18% OF THAT OVERALL FOR ALL THREE OF THOSE HAS NOT YET EVEN BEEN SPENT.

I WILL SAY FOR 2012 AND 2006, YOU'LL NOTICE THAT THE, AMOUNT AUTHORIZED OR THE INCEPTION TO DATE AND APPROPRIATIONS ARE SLIGHTLY HIGHER THAN THE AMOUNTS AUTHORIZED BY THE VOTERS, BECAUSE WE DO HAVE INTEREST EARNINGS IN THOSE AMOUNTS.

SAME THING FOR THE 2006 BOND PROGRAM.

BUT TO YOUR POINT, THOUGH, THERE'S STILL, UNENCUMBERED BALANCES.

I THINK FOR, THE 2006 PROGRAM, PROPOSITION TEN, THAT PROJECT HAS STALLED FOR A NUMBER OF YEARS.

AND SO, THAT REFLECTS A HUGE AMOUNT OF THE BALANCES.

AND THEN FOR BOTH 2012 AND 2006, THE FLOOD PROTECTION AND STORM DRAINAGE FACILITIES PROPOSITION, THERE'S A HUGE PROJECT UNDERWAY RELATED TO THE TUNNEL.

AND SO, AS SOON AS THAT PROJECT IS COMPLETE, THOSE FUNDS WILL BE SPENT.

BUT THEY'RE NOT YET ENCUMBERED.

THEY'RE NOT YET ENCUMBERED.

THERE'S STILL WORK TO BE DONE RELATED TO, I GUESS, THE COMPONENTS THAT COMPLEMENT THAT PARTICULAR PROJECT.

I WON'T MAKE YOU TALK WATER, I GET IT.

OKAY, SO MY NEXT QUESTION IS ON PAGE 13.

IT'S ABOUT SALES TAX REVENUE.

MAY I ADD TO THAT, PLEASE, BEFORE YOU MOVE ON? THANK YOU. AND I DON'T DISAGREE WITH ANYTHING THAT WAS SAID THUS FAR.

I JUST WANTED TO CLARIFY ONE POINT ABOUT THE 2017 BONDS.

WHILE THE BOND PROGRAM WAS APPROVED OVER SIX YEARS AGO.

YOU KNOW, WE KNOW THAT, WE DON'T APPROPRIATE IT ALL AT ONCE.

IT GETS APPROPRIATED OVER MULTIPLE YEARS.

SO, SOME OF THE FUNDS THAT ARE STILL UNENCUMBERED, MAY HAVE ONLY BEEN APPROPRIATED, YOU KNOW, 12 MONTHS AGO OR POSSIBLY 24 MONTHS AGO.

I JUST DIDN'T WANT RESIDENTS WHO ARE LISTENING TO THINK THAT ALL OF THE FUNDS HAVE BEEN APPROPRIATED, AVAILABLE SINCE 2017.

THERE'S JUST A TIMING ON THAT.

THAT'S A CLARIFICATION I WANT TO MAKE.

WELL, SURE. WE JUST HAD THAT BRIEFING RIGHT WHERE THEY'RE SAYING THAT THERE'S NEW MONEY FROM THE 2017 PROPOSITION THAT'S GOING TO BE ISSUED.

RIGHT? ABSOLUTELY.

YES, MA'AM. OKAY, PERFECT.

SO ON THE SALES TAX COLLECTION, I KNOW THAT JACK AND I HAD A LITTLE DEBATE AT BUDGET TIME ABOUT THESE FORECAST NUMBERS.

WE HAVE ANNUALLY SINCE I HAVE BEEN ON THE COUNCIL ANYHOW, I BELIEVE, EXCEEDED OUR SALES.

THERE MAY BE ONE YEAR, ACTUALLY, WITH COVID THAT WE DID NOT, OUR SALES TAX REVENUE.

I'M WONDERING IF THERE'S A POSSIBILITY IF, MY COLLEAGUES WISH FOR US TO PASS SOME SORT OF RESOLUTION THAT PLEDGED EXCESS SALES TAX TO A CERTAIN PROJECT OR SOURCE, OR IF, THERE IS NOT A WAY TO DO THAT.

SO WE DON'T.

THE CURRENT, I GUESS CITY CODE DOES NOT PREVENT YOU FROM DOING THAT, BUT THE ONE THING THAT I WILL SAY ABOUT BOTH PROPERTY TAX AND SALES TAX, THOSE ARE THE TWO LARGEST REVENUE SOURCES FOR THE CITY.

SO ONCE YOU, YOU START, SORT OF PLEDGING THEM FOR SPECIFIC PROJECTS, THEN THERE'S SORT OF A RIPPLE EFFECT ON THE EXPENDITURE SIDE.

SO YOU JUST WANT TO BE MINDFUL OF THAT.

BUT THERE'S NOTHING IN IN CITY CODE THAT WOULD PREVENT YOU FROM DOING SO.

RIGHT. MY INTEREST WOULD BE IN PLEDGING EXCESS SALES TAX BEYOND WHAT'S BUDGETED, ASSUMING ALL OUR DEPARTMENTS WOULD LIVE WITHIN THEIR BUDGETS AND PERHAPS NOT HAVING, THIS CUSHION THAT'S BEEN THERE FOR MANY YEARS, WOULD ENSURE THAT ACTUALLY HAPPENS.

ON PAGE 16, THE CONVENTION CENTER HAS HAD A CHANGE IN THE NUMBER OF PLANNED EVENTS BOOKINGS.

SO LAST YEAR'S ACTUAL WAS 96 EVENTS AND THE PLANNED FOR 24 AND SO FAR THEY'RE MEETING THE PLAN IS 83.

AND I WAS JUST WONDERING SO [INAUDIBLE] 13.5% DECREASE.

I WAS JUST WONDERING IF THERE WAS A REASON THAT THEY HAD SUBMITTED, SO MANY LESS EVENTS, LESS BOOKINGS.

WE WILL HAVE TO FOLLOW UP WITH THE CONVENTION CENTER AND GET BACK TO YOU.

THANK YOU. AND THEN, THE NEXT QUESTION I ACTUALLY SEE SHERI BACK THERE IS PAGE 18.

WE'RE NOT HITTING OUR DALLAS 365 ON GETTING OUR INVOICES PAID WITHIN 30 DAYS.

[02:15:01]

AND I WAS JUST WONDERING IF THERE WAS ANYTHING WE SHOULD KNOW ABOUT.

I WILL SAY FOR THIS ONE, THE, DECLINE IN THE METRIC IS DUE PRIMARILY TO HIGH VOLUME DEPARTMENTS.

AND I KNOW THAT, THE CITY CONTROLLER'S OFFICE IS WORKING VERY HARD WITH THEIR ACCOUNTS PAYABLE TEAM TO IDENTIFY, PROCESS IMPROVEMENTS THAT WILL MITIGATE THOSE DELAYS.

SO THEY ANTICIPATE THAT, THEY'LL BE MEETING THE 85% TARGET IN FUTURE REPORTING MONTHS.

AND SHERI IS RIGHT BEHIND YOU.

HI, SHERI KOWALSKI, CITY CONTROLLER.

AND THANK YOU FOR THE QUESTION.

YES FOR DECEMBER, WE'RE AT 86%.

WE WORK ON THAT DAILY.

THERE ARE TWO DEPARTMENTS THAT WE HAD SOME ISSUES WITH.

THEY HAD SOME PROCESS ISSUES, AND I AM ACTUALLY WORKING DIRECTLY WITH THOSE DEPARTMENTS AND THE AP TEAM.

AND WE ACTUALLY HOPE TO GET ABOVE 90%.

WE'RE AT 86% FOR DECEMBER, AND WE'RE WORKING TOWARD THAT FOR THE REST OF THE YEAR TO GET ABOVE EVEN 85%.

THANK YOU SO MUCH, SHERI. I KNOW YOU HAVE WORKED SO HARD TO GET THAT NUMBER UP THERE, OVER THE YEARS.

AND SO, THANK YOU.

WELL YOU'RE WELCOME AND ONE OTHER THING I WANT TO ADD, WE'RE ALSO OVER 90% ON ELECTRONIC, PAYMENTS IN DECEMBER FOR NON NON REFUNDS AND NON PETTY CASH VOUCHERS. SO WE'RE REALLY WORKING HARD BUT THANK YOU.

THANK YOU CHAIR. THAT WAS ALL MY QUESTIONS ON THE BUDGET ACCOUNTABILITY REVIEW.

ALL RIGHT. NOT SEEING ANY MORE.

MOVING ON TO THE LAST ITEM.

ITEM M AS IN MIKE TECHNOLOGY ACCOUNTABILITY REPORT.

THANK YOU. I HAVE TWO QUESTIONS.

OKAY. MY FIRST QUESTION IS ON PAGE 11, AND THIS IS, PROJECT NUMBER 26, FIRE STATION ALERTING SYSTEM.

AND THE ALERTING SYSTEM ESTIMATED COMPLETION DATE HAS MOVED TO OCTOBER 24TH FROM A DATE THAT WAS IN 23, I THINK IT WAS SEPTEMBER 23RD.

AND I'M WONDERING IF YOU COULD GIVE US AN UPDATE.

SO THANK YOU FOR THE QUESTION.

BILL ZIELINSKI, CIO.

SO THANK YOU FOR THAT QUESTION CHAIR MENDELSOHN, ACTUALLY, I AM HAPPY TO REPORT, ALTHOUGH THERE WERE SOME DELAYS IN THE, THE REQUEST FOR PROPOSALS PROCESS, WE ACTUALLY HAVE COMPLETED THAT REQUEST FOR PROPOSALS PROCESS.

WE'RE IN THE PROCESS.

WE'VE COMPLETED THE TECHNICAL EVALUATION ON THAT AND WE'RE ACTUALLY READY TO MOVE THAT FORWARD.

SO THE GOOD NEWS IS THAT WE HAVE COMPLETED THAT PORTION OF THE PROJECT.

THE DELAYS THAT OCCURRED WITHIN THE PROJECT HAD MORE TO DO WITH EXTENSIONS WITHIN THE, THE PROPOSAL PROCESS.

WE ACTUALLY REQUIRED ANY POTENTIAL PROPOSER TO ACTUALLY GO OUT AND VISIT A NUMBER OF THE FIRE STATIONS, BECAUSE WE HAVE SUCH A VARIANCE IN THE AGE OF THE FIRE STATIONS.

THERE IS A THERE IS WORK THAT HAS TO BE DONE TO ENSURE THAT ALL OF THE WIRING AND ALL OF THE OTHER THINGS THAT ARE NEEDED WITHIN THE FIRE STATIONS ARE UP TO DATE.

WE DID REQUIRE ALL OF THOSE RESPONDENTS TO DO TRIPS, SO IT TOOK US A WHILE.

WE HAD A I WANT TO SAY THAT WE HAD 13 DIFFERENT PROPOSERS THAT TOOK ADVANTAGE OF THOSE, OF THOSE REVIEWS AT THE FIRE STATION.

THEY ALSO REQUESTED, FLOOR PLANS, OTHER ARCHITECTURAL DOCUMENTS TO HELP THEM IN THEIR PROPOSALS.

AND THAT TOOK A LITTLE BIT OF TIME FOR US TO BE ABLE TO GATHER THAT DOCUMENTATION TO PROVIDE TO THEM.

SO, IT EXTENDED THROUGH THAT PROCESS.

BUT AGAIN, I'M HAPPY TO REPORT THAT WE HAVE COMPLETED THE PROCUREMENT PROCESS AND ARE READY TO MOVE FORWARD WITH AN AWARD.

MOVE FORWARD WITH A WITH AN AWARD ON A CONTRACT FOR FOR A VENDOR TO COMPLETE THE WORK.

WHEN DO YOU THINK THAT'LL BE? I BELIEVE.

I BELIEVE THAT WE ARE LIKELY TO SEE THIS COME BEFORE COUNCIL IN THE MARCH TIME FRAME FOR APPROVAL, AND THEN THE PROJECT CAN FORM.

THEY CAN ACTUALLY START TO INSTALL THE SYSTEMS WITHIN THE FIRE STATIONS.

I KNOW I'VE EXPRESSED IT AT GPFM AND AT PUBLIC SAFETY MANY TIMES.

THIS IS AN URGENT PROJECT.

I. IT'S ONE OF THE DIFFICULTIES OF BEING A COUNCIL MEMBERS WHEN YOU SEE HOW LONG IT TAKES TO DO SOMETHING, ESPECIALLY WHEN IT'S, WOW, OUR FIRE ALARMS AREN'T WORKING, SO, PLEASE PRIORITIZE IT.

MY LAST ITEM IS NUMBER 26.

I THINK IT'S ON PAGE 26.

THIS IS, I THINK, ALARMING.

PLEASE TELL ME IF I SHOULDN'T BE ALARMED.

THIS IS THE MONTHLY MAJOR OUTAGE REPORT, AND, I DID HAVE TO CALL YOU AND ASK YOU WHAT DEPARTMENT IS DSV? SO IT'S YOUR DEPARTMENT.

IT'S WITHIN YOUR DEPARTMENT.

AND, THE PRIORITY FOR EVERY SINGLE OUTAGE IS HIGH.

AND IT SURE DOES LOOK LIKE THAT'S A LOT OF HOURS THAT WE HAD, DOWNTIME FOR SERVERS.

AND I WAS WONDERING IF YOU COULD JUST TALK A LITTLE BIT ABOUT THAT.

ABSOLUTELY. THANK YOU FOR THAT QUESTION.

SO YES, WE DO ON THIS REPORT, WE ONLY SHOW THE ONES THAT ARE PRIORITIZED AS A HIGH PRIORITY OUTAGE.

AND IN THIS PARTICULAR CASE, THE VAST MAJORITY OF THOSE OUTAGES ARE ASSOCIATED WITH THAT SECOND LINE ITEM THAT TALKS ABOUT A BACKUP FAILING.

SO IN THIS PARTICULAR CASE, THE OUTAGE ITSELF WAS TO THE PROCESS OF A BACKUP NOT SUCCESSFULLY COMPLETING, NOT IN TERMS OF THE SYSTEM NOT BEING AVAILABLE.

[02:20:08]

THE DEPARTMENT MAY ACTUALLY NOT EVEN KNOW THAT THAT BACKUP IS NOT OCCURRING.

BUT WE ACTUALLY DETECT THOSE WE TRACK THOSE VERY, VERY CAREFULLY.

IN FACT, ON PAGE 49 OF THE REPORT, WE ACTUALLY TRACK ALL OF OUR BACKUPS, AND WE'VE BEEN DOING THAT FOR THE PAST THREE YEARS WHERE, WE, WE DO HUNDREDS OF BACKUPS EVERY SINGLE EVENING.

BECAUSE IF YOU DON'T HAVE BACKUPS, IF THERE IS AN EVENT THAT OCCURS AND YOU NEED TO BACKUP OR YOU NEED TO RESTORE A SYSTEM FROM A BACKUP, YOU HAVE THE POTENTIAL FOR LOSS.

SO WE TAKE THOSE VERY SERIOUSLY.

SO WE ACTUALLY OPEN THE TICKET ON OURSELVES TO SAY THE BACKUP PROCESS IS NOT WORKING.

IN THESE CASES, EVEN THOUGH IT SHOWS 413 HOURS OR ABOUT 17 DAYS FOR THE OUTAGE, IT DIDN'T ACTUALLY PERSIST THAT LONG.

WHEN WE OPEN IT, WE DO NOT CLOSE ANY OF THESE REPORTS UNTIL WE'VE BEEN ABLE TO VERIFY THAT EVERYTHING IS FUNCTIONING AND WE HAVE MULTIPLE CYCLES WHERE IT HAS RUN SUCCESSFULLY.

THAT SAID, IN TERMS OF IN TERMS OF THOSE BACKUP PROCESSES, IN APRIL OF 2023, THE COUNCIL APPROVED AN AGENDA ITEM OR A CONTRACT ITEM FOR US TO UPGRADE OUR BACKUP SYSTEM.

SO WE ACTUALLY BEGAN THE THE, IMPLEMENTATION OF THE NEW BACKUP SYSTEM IN DECEMBER, AND WE WILL BE FULLY COMPLETED IN MARCH WITH THAT NEW BACKUP SYSTEM.

SO THIS IS AN AREA WHERE WE'VE CONTINUED TO MAKE IMPROVEMENTS.

AND AGAIN, IN THIS CASE, WHILE IT'S LISTED AS AN OUTAGE, THE SYSTEM WAS NOT UNAVAILABLE TO THE TO THE DEPARTMENT.

IT WAS ACTUALLY US TRACKING TO THE PROCESS OF A BACKUP NOT COMPLETING VERY SERIOUS.

BUT AGAIN, WE WE DEFINE IT AS AN OUTAGE.

AND SO AND THEN THE COMMVAULT SERVERS, THOSE ARE OURS OR THOSE ARE THEIRS? THEY'RE ACTUALLY BOTH WITHIN THE COMMVAULT SYSTEM IN TERMS OF THE THE BACKUP OCCURRING.

THIS IS JUST HOW THEY'VE WORDED THE REPORT.

THEY ACTUALLY THE BACKUP SYSTEM THAT WE ARE CURRENTLY USING AND MIGRATING AWAY FROM IS COMMVAULT.

AND IN THAT COMMVAULT PROCESS IS WHERE IF IT DID NOT COMPLETE, IT MOVES TO A FAIL.

THEN WE OPEN THAT TICKET AND WE MOVE TO RESOLVE THE ISSUE AND ENSURE THAT WE HAVE THE BACKUP.

OKAY, WELL, I'M GLAD TO HAVE HEARD IT.

OUR LAST BUDGET PRESENTATION, OUR BOND PRESENTATION THAT THERE'S I THINK IT'S $5 MILLION [INAUDIBLE].

LET US KNOW IF YOU NEED MORE.

THANKS. THANK YOU.

ALL RIGHT. WITH THAT WRAPPING UP, IT IS 4:24 P.M., AND THIS MEETING OF THE GOVERNMENT PERFORMANCE FINANCIAL MANAGEMENT COMMITTEE IS ADJOURNED.

* This transcript was compiled from uncorrected Closed Captioning.