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ALL RIGHT. IT IS 1:02 P.M. AND THIS IS MARCH 24TH, 2026, A COMMITTEE ON FINANCE.
[Finance Committee on March 24, 2026.]
WE HAVE A QUORUM AND WE ARE GOING TO START OFF TODAY WITH APPROVAL OF THE MARCH 4TH, 2026 SPECIAL CALL COMMITTEE ON FINANCE MEETING MINUTES.DO I HAVE A MOTION? YES, I HAVE A MOTION AND A SECOND.
ALL THOSE IN FAVOR SAY AYE. ANY OPPOSED MOTION CARRIES? WE ARE GOING TO GO A LITTLE BIT OUT OF ORDER TODAY, COLLEAGUES.
WE'RE GOING TO DO THE SPECIAL RECOGNITION AS PLANNED.
AND THEN WE WILL, WE'RE GOING TO DO MEMO ITEM L, WHICH IS THE DFW AIRPORT ITEM, JUST TO, TO BE COURTEOUS TO OUR GUESTS WHO ARE IN CAME IN FOR THIS. WE'LL THEN GO THROUGH THE OTHER MEMO ITEMS AND THEN WE'RE GOING TO GO THROUGH THE BRIEFINGS.
THEN WE'LL DO OUR DCAD BRIEFING AND THE CONVENTION CENTER FINANCING PLAN LAST.
THAT'S THAT'S THE ORDER OF AGENDA. I WILL NOW TURN IT OVER TO OUR CFO TO DO THE SPECIAL RECOGNITION.
THE ASSOCIATION HAS MORE THAN 30,000 MEMBERS REPRESENTING FEDERAL, STATE AND LOCAL ENTITIES.
GFOA WAS FOUNDED IN 1906 WITH THE MISSION TO ADVANCE EXCELLENCE IN PUBLIC FINANCE.
THE AWARD IS IN RECOGNITION OF THE CITY'S ANNUAL BUDGET FOR FISCAL YEAR 2526.
THIS IS THE HIGHEST AWARD IN GOVERNMENT BUDGETING.
TO RECEIVE THIS AWARD, A GOVERNMENT UNIT MUST PUBLISH A BUDGET DOCUMENT THAT MEETS FOUR CRITERIA.
AS A POLICY DOCUMENT, AS A FINANCIAL PLAN, AS AN OPERATIONS GUIDE, AND AS A COMMUNICATION DEVICE.
THIS IS THE 27TH CONSECUTIVE YEAR THAT THE CITY OF DALLAS HAS BEEN RECOGNIZED FOR GFOA.
FOR THE ANNUAL BUDGET DOCUMENT, PLEASE JOIN ME IN RECOGNIZING AND SAYING THANK YOU TO THE BUDGET MANAGEMENT SERVICES TEAM LED BY OUR DIRECTOR, JEANETTE WEEDEN. AND SO BUDGET TEAM, IF Y'ALL WANT TO STAND UP AND WE HAVE SOME FOLKS OVER THERE JUST WANT TO SAY THANK YOU FOR THE GOOD WORK THAT THEY DO.
HOW MANY YEARS AGAIN? 27, 27 YEARS. THAT'S FANTASTIC.
CONGRATULATIONS. DOES THAT MEAN WE'RE NOT SUPPOSED TO FILE ANY BUDGET AMENDMENTS? THAT WOULD BE THAT WOULD BE A GREAT THING FOR US TO DO THIS YEAR.
SO WE'LL SEE HOW THAT GOES. THANK YOU FOR ALLOWING US TO TO RECOGNIZE THIS TEAM.
THANK YOU. CONGRATULATIONS. ALL RIGHT, COLLEAGUES, WE ARE GOING TO MOVE ON.
AND WE HAVE A STRICT 3:00 STOP TIME TODAY. JUST BECAUSE WE HAVE SOME OTHER THINGS GOING ON.
SO I JUST WANT TO LET YOU ALL KNOW I DON'T ANTICIPATE THIS GOING THAT LONG, BUT I'LL BE HAVING TO PUT PEOPLE ON A TIMER IF WE START GETTING TOO, TOO LENGTHY. ALRIGHT, SO WE'RE MOVING ON AS MENTIONED TO ITEM L THIS WE HAVE SOMEONE HERE WHO CAN INTRODUCE THIS ITEM.
WE DO HAVE DFW REPRESENTATIVES HERE AND WE'LL ASK IF Y'ALL COME ON DOWN TO THE TABLE.
AND JAKE ARE YOU GOING TO INTRODUCE THE TEAM? JAKE, WE'RE ON YOUR TIME NOW. WHENEVER YOU'RE READY.
THANK YOU. JAKE ANDERSON, INTERIM DIRECTOR OF GOVERNMENT AFFAIRS.
THANK YOU. AND TODAY WITH US, WE HAVE CFO BRIAN BUTLER FROM THE DFW AIRPORT NEW IN HIS ROLE.
AND THEN AND THEN RUSSELL SELKIRK, THE TREASURER FOR DFW AIRPORT.
WELCOME. TAKE IT AWAY. GREAT. THANK YOU VERY MUCH.
SO THE ITEMS FOR CONSIDERATION HERE TODAY THERE'S NUMEROUS I'LL JUST START FROM THE TOP.
THE FIRST IS THE 72ND SUPPLEMENTAL BOND ORDINANCE.
THIS IS THE ANNUAL AUTHORIZATION FOR DFW AIRPORT TO BE ABLE TO ISSUE DEBT, LONG TERM DEBT.
THE AUTHORIZATION AMOUNT OF $3 BILLION. GOOD FOR A PERIOD OF ABOUT A YEAR BEGINNING IN JUNE.
THE SECOND ITEM, THE 73RD SUPPLEMENTAL BOND ORDINANCE IS AN ANNUAL AUTHORIZATION THAT WE SEEK.
THAT ALLOWS US TO REFUND COMMERCIAL PAPER USING BOND PROCEEDS.
THE 74 SUPPLEMENTAL BOND ORDINANCE IN THE 75TH PERTAINED TO OUR COMMERCIAL PAPER PROGRAMS.
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WE ARE SEEKING TO INCREASE THE LIMITS UNDER BOTH OF THESE PROGRAMS TO EXPAND OUR INTERIM FUNDING CAPACITY TO MEET THE CAPITAL NEEDS FOR OUR CAPITAL PROJECTS. IN ADDITION, WE'RE AMENDING THE STRUCTURES TO ALLOW FOR THE ISSUANCE IN VARIOUS TAX STRUCTURES.SO TAXABLE AMT AND AND NON AMT THE TWO TAX EXEMPT STRUCTURES.
FINALLY WE'RE UPDATING OUR MASTER BOND ORDINANCE.
IN ADDITION, IT ALLOWS US TO ISSUE DIFFERENT FORMS OF DEBT.
AGAIN, TWO ITEMS THAT WE ARE EVALUATING AND MAY USE IN THE FUTURE.
AND THEN THE FINAL ITEM IS THE 55TH SUPPLEMENTAL BOND ORDINANCE.
VERY MUCH LIKE THE MASTER BOND ORDINANCE, BUT THIS ONE GOVERNS OUR SABLAN DOCUMENTATION.
SO IN THE EVENT WE WERE TO ISSUE DEBTS ON A SUBLEASE BASIS AS OPPOSED TO SENIOR WE'RE MAKING A LOT OF THE SAME UPDATES IN THE MASTER BOND ORDINANCE ON THE SUBLINE DOCUMENT AS WELL. HAPPY TO ANSWER ANY QUESTIONS. THANK YOU.
AND CAN YOU I KNOW JAKE INTRODUCED BOTH OF YOU, BUT JUST SO EVERYBODY AT HOME KNOWS WHO WAS TALKING, CAN YOU IDENTIFY YOURSELF? SURE, ABSOLUTELY. RUSSELL SELKIRK, THE TREASURER OF DFW AIRPORT.
ALL RIGHT. THANK YOU. COLLEAGUES, DO YOU HAVE ANY QUESTIONS? JUST KIND OF TELL US, AND WHY DO YOU NEED TO COME TO COUNCIL? WHAT'S THIS IS THIS IS AN ITEM THAT WILL GO TO AGENDA FOR A VOTE.
IS THAT CORRECT? THAT'S CORRECT. SO IT WILL BE SCHEDULED FOR APRIL 8TH.
AGENDA. AND BECAUSE WE ARE ONE OF THE TWO OWNER CITIES, THIS REQUIRES OWNER CITY APPROVAL.
IT'S ALREADY BEEN APPROVED BY THE DFW AIRPORT BOARD. OKAY.
UNANIMOUS APPROVAL. I'M NOT SURE THE ANSWER TO THAT.
HEAD NODS YEAH. OKAY. GREAT. I DON'T THINK WE HAVE ANY QUESTIONS.
THANK YOU FOR BEING HERE TODAY. GREAT. THANK YOU. ALL RIGHT, COLLEAGUES, NEXT WE'RE GOING TO GO THROUGH THE MEMOS SO WE CAN I'M GOING TO TRY TO DO THIS ONE I CAN TO. SO WE HAVE A LOT OF STAFF THAT HANGS OUT HERE AND IN THE BACK.
WE'LL START WITH. ITEM E, WHICH IS THE OFFICE OF CITY AUDITOR MONTHLY AUDIT REPORT. THIS IS ON THE THE FORMER COUNCIL MEMBERS.
THIS IS A NORMAL THING THAT WE DO WHEN COUNCIL MEMBERS ARE NO LONGER HERE.
MY QUESTION ON ITEM F IS I SEE THAT SALES TAX ON PAGE FOUR IS WE'RE SO WE'RE STILL KIND OF ON FORECAST. ARE WE GOING TO ADJUST THOSE SALES TAX FIGURES SEEING AS HOW WE SEEM TO BE COMING UNDER? CAN YOU JUST TALK ABOUT WHAT'S GOING ON WITH SALES TAX IN THE CITY PLEASE? HI.
SUZANNE ZEMAN INTERIM ASSISTANT DIRECTOR, BUDGET MANAGEMENT SERVICES.
PLEASE MOVE THE MIC A LITTLE CLOSER. THANK YOU. I'LL MOVE MYSELF CLOSER. YES.
SUZANNE ZEMAN ASSISTANT DIRECTOR, INTERIM FOR BUDGET MANAGEMENT SERVICES.
WE WORK WITH A CONTRACT ECONOMIST WITH OUR WITH OUR SALES TAX FORECASTS.
AND SO WE HAVE BEEN RECEIVING WE PUT OUT THOSE MEMOS MONTHLY SHOWING OUR OUR RECEIPTS TO DATE.
AND SO YES, WE'LL PROBABLY WORK THAT INTO OUR NEXT FORECAST.
WE, I'LL GO AHEAD AND ADD TO THAT IF I CAN, SUZANNE.
AS YOU'VE NOTED IN THE BUDGET ACCOUNTABILITY REPORT ARE IN THE MEMO THAT WE SENT OUT, WE ARE $5 MILLION BELOW BUDGET AFTER THE FIRST FOUR MONTHS OF THE FISCAL YEAR. SO WE SEND THAT SALES TAX MEMO OUT EACH MONTHLY.
AND THEN AS SUZANNE MENTIONED, WE WORK WITH OUR CONTRACT ECONOMIST ON THOSE FORECASTS.
AND WE WILL BE UPDATING, LOWERING OUR FORECAST IN THE NEXT BUDGET ACCOUNTABILITY REPORT.
WE ARE HOPEFUL THAT THE FIFA EVENTS THIS SUMMER WILL, WILL HELP GENERATE MORE SALES TAX.
SO WE'RE WORKING CLOSELY WITH THEM TO FIGURE OUT WHAT THE RIGHT FORECAST IS.
BUT IN THE FIRST FOUR MONTHS OF THE FISCAL YEAR, WE'RE BEHIND BY $5 MILLION, AND IT WILL BE REFLECTED IN THE NEXT BUDGET ACCOUNTABILITY REPORT. THANK YOU. I REALLY LIKE HOW ON PAGE 16 OF THE OF THE BUDGET ACCOUNTABILITY REPORT,
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YOU TALK ABOUT THE ECONOMIC INDICATORS THAT ARE POSSIBLY LEADING TO THE SALES TAX REVENUE REDUCTIONS.AND I SEE HOW YOU MENTIONED RETAIL TRADE IS DOWN IN THE CITY AS WELL AS CONSTRUCTION.
IS ALSO DOWN A LITTLE BIT. IS IS THERE A REASON WHY CONSTRUCTION'S DOWN? SO I WOULD ANTICIPATE THAT CONSTRUCTION AND WHOLESALE TRADE ARE BOTH DOWN JUST AS THE ECONOMY IS CHALLENGED OVERALL, NOT JUST IN DALLAS, NOT JUST IN THE STATE, BUT THROUGHOUT THE ENTIRE COUNTRY.
AND YOU WILL SEE THAT HAVING AN IMPACT ON OUR SALES TAX RECEIPTS.
SALES TAX TYPICALLY BECOME MOST VOLATILE DURING, YOU KNOW, ECONOMIC TURBULENCE.
AND I THINK YOU'RE SEEING SOME OF THAT HERE. WE ARE ABOVE WHAT WE WERE FOR THE MOST RECENT 12 MONTHS, BUT WE'RE NOT AS HIGH AS WE BUDGETED. WE BUDGETED FOR EVEN MORE GROWTH.
WE'RE STILL GROWING. WE'RE JUST NOT GROWING AT THE RATE THAT WE INCLUDED IN THE BUDGET.
OKAY. AND I ACTUALLY HAD A QUESTION ABOUT MY BUDGET. TOWN HALL LAST NIGHT. THEY WERE TRYING TO TIE THE SALES TAX RECEIPTS TO THE IRAN AND THE AND THEY WANTED ME TO FIGURE OUT HOW TO FIX THAT A LITTLE ABOVE MY PAY GRADE.
SO I WOULD SAY THAT THE SALES TAX THAT WE'RE REPORTING HERE IS NOT RELATED TO THAT, BECAUSE WHAT WE'RE REPORTING IS OCTOBER, NOVEMBER, DECEMBER, AND JANUARY. GOOD TO KNOW.
OKAY. FEBRUARY, THERE'S ABOUT A MONTH TO SIX WEEK LAG IN WHAT WE GET FROM THE STATE COMPTROLLER.
SO YOU WILL NOT SEE IRAN REFLECTED IN THESE NUMBERS? OH, YEAH. EXACTLY. ALL RIGHT, COLLEAGUES, WE'RE ON THE MEMOS RIGHT NOW.
WE'RE DOING MEMOS FIRST FOR FOLKS WHO ARE JUST CAME IN ITEM F MAYOR, DEPUTY MAYOR PRO TEM.
SO SINCE WE ALL ARE IN BUDGET LISTENING SESSIONS RIGHT NOW AND HAVE THE OPPORTUNITY TO INTERACT WITH RESIDENTS, THIS IS AN OPPORTUNITY TO WHILE SHARING THAT WE'VE GOT A $5 MILLION LAG IN SALES TAX TO ALSO TAKE THE OPPORTUNITY TO PROMOTE THE SHOP DALLAS CAMPAIGN, BECAUSE THAT IS LITERALLY SOMETHING THAT PEOPLE CAN DO ON EXPENSES THAT THEY MAY HAVE EVERY SINGLE WEEK, YOU KNOW, WEEK IN, WEEK OUT. YOU KNOW, DON'T SHOP IN HIGHLAND PARK, UNIVERSITY PARK, FARMERS BRANCH, CARROLLTON, DESOTO, DUNCANVILLE, KEEP IT IN DALLAS, BE AWARE OF OUR CITY AND THAT THOSE DOLLARS DO HELP US FIX POTHOLES AND KEEP LIBRARIES OPEN AND MO PARKS AND PAY POLICE OFFICERS, ETC..
SO I KNOW IT SEEMS SILLY, BUT IF YOU'VE GOT AN AGGREGATE OF 1.3 MILLION PEOPLE FOCUSED ON THAT, THEN IT MIGHT BE ABLE TO MAKE A DIFFERENCE. THANK YOU.
THANK YOU. ANYBODY ELSE ON ITEM F? NOPE. ALL RIGHT.
ITEM G, THE MONTHLY FINANCIAL STATUS REPORT. THIS IS, AS IT SAYS, A MONTHLY REPORT THAT WE GO THROUGH JUST TO TRACK OUR EXPENDITURES. I'M SEEING NO QUESTIONS. ITEM H IS THE CDBG SPENDING REPORT FOR UP THROUGH THE END OF FEBRUARY. ANY QUESTIONS ON ITEM H? NO. ITEM I IS MONTHLY TECHNOLOGY ACCOUNTABILITY REPORT.
NOPE. YES. I SORT OF HAD A QUESTION. SEE THE CDBG, BUT WE CAN GO BACK TO IT. OKAY. OKAY. ITEM J IS THE MONTHLY PROCUREMENT ACCOUNTABILITY REPORT. SEEING NO QUESTIONS. ITEM K IS THE QUARTERLY REPORT ON REMAINING UNENCUMBERED.
GENERAL OBLIGATION BOND FUNDS. ANYBODY? NOPE.
WE'VE ALREADY DONE ITEM L. ITEM M IS AN ACTUAL UPCOMING AGENDA ITEM.
JACK, CAN YOU JUST GIVE US A VERY SHORT OVERVIEW OF WHAT, WHAT'S COMING UP ON THE AGENDA? YES. AND I ALSO HAVE JANINE KURZMAN, THE CITY TREASURER.
IF YOU WANT TO COME OUT IN CASE THERE'S OTHER QUESTIONS.
BUT WE DO HAVE AN UPCOMING AGENDA ITEM ON YOUR AGENDA FOR APPROVAL TOMORROW.
IT IS A, I BELIEVE, THE SECOND SUPPLEMENTAL AGREEMENT FOR A ONE YEAR EXTENSION OF OUR CURRENT METERS CONTRACT METERS IS THE CONSULTANT TO THE CITY FOR OUR INVESTMENT OF OUR FUNDS.
AND WE DID POINT OUT IN THE MEMO, A LOT OF TIMES THERE'S QUESTIONS ABOUT DOES THIS INCLUDE THE PENSION FUNDS? NO. THIS ONLY INCLUDES THE FUNDS OF THE CITY OF DALLAS, NOT FUNDS THAT OTHERS HAVE RESPONSIBILITY OVER.
JENNY, DO YOU WANT TO ADD ANYTHING BEYOND THAT? YES. JENNY, MY ASSISTANT DIRECTOR OF TREASURY.
THIS IS THE LAST ONE YEAR RENEWAL. SO WE DID A THREE YEAR WITH TWO ONE YEAR RENEWAL OPTIONS.
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SO WE'RE EXERCISING THE LAST YEAR STARTING APRIL.SO NEXT YEAR WILL BE WELL, WE'LL HAVE TO GO THROUGH THE RFP PROCESS NEXT YEAR.
THE FALL WILL PROBABLY WILL BE PUTTING OUT A NEW RFP FOR, FOR THEIR SERVICES.
THANK YOU. I'M GOING TO TURN IT OVER TO VICE CHAIR.
STEWART. SO WOULD WE SAY THEN THAT WE ARE FAIRLY HAPPY WITH THE ADVICE THEY'VE GIVEN.
I MEAN, SINCE WE'VE HAD THEM NOW FOR A BIT. SO FAR, SO GOOD.
I MEAN, YES, YES. ABSOLUTELY VALUABLE. WE HAVE A VERY GOOD RELATIONSHIP WITH THE TEAM.
SO ANYTIME THAT THE TREASURY OFFICE RUNS NUMBERS WHEN WE HAVE CASH AVAILABLE, WE ARE WORKING DIRECTLY WITH THEM TO TRY TO OBTAIN ANY GOOD OPPORTUNITIES FOR US TO INVEST OUR FUNDS.
SO LOTS OF THE, THE INVESTMENTS THAT WE HAVE ARE SET TO MATURE DURING OUR DEBT SERVICE PAYMENTS JUST TO ENSURE THAT WE HAVE SUFFICIENT CASH. BUT WE ARE VERY, WE HAVE A GREAT RELATIONSHIP, ONGOING RELATIONSHIP WITH THEM WHERE WE NOTIFY THEM WE HAVE CASH AVAILABLE.
THEY FIND THE OPPORTUNITIES FOR US. THEY SEND IT TO US AND WE APPROVE ANY TRADES BEFORE THEY'RE, YOU KNOW, THEY'RE PLACED. AND THEY ALSO HELP US WITH REPORTING AND REVIEWS OF THE INVESTMENT POLICY THAT WE DO EVERY YEAR. THEY ALSO PARTICIPATE IN OUR QUARTERLY INVESTMENT COMMITTEE MEETINGS.
THEY COME IN TO PROVIDE US ANY ECONOMIC UPDATES, REVIEW OF OUR OPERATIONS FOR THE PRIOR QUARTER AND PROVIDE ANY ADVICE OR RECOMMENDATION FOR THE FOLLOWING QUARTER.
OKAY. AND WE DO SEND OUT QUARTERLY UPDATES. THEY DO COME TO THIS COMMITTEE ON A QUARTERLY BASIS, WHICH IS THE QUARTERLY INVESTMENT REPORT. AND YOU'LL SEE, AS JENNY'S MENTIONING, THE WORK THAT THEY DO, THEY PREPARE THAT REPORT FOR US, BUT YOU'LL SEE THE INTEREST INCOME THAT WE EARN.
AND THAT'S PARTIALLY, OF COURSE, AS A RESULT OF THE GOOD WORK THAT THEY'RE DOING.
SO WE ARE PLEASED. IT'S DIFFERENT THAN PLANNING FOR LONG TERM BECAUSE WE HAVE CASH FLOW NEEDS EVERY TWO WEEKS WITH POLICE AND FIRE PAYROLL, AND THEN EVERY OTHER WEEK IS ALSO CIVILIAN PAYROLL.
WE HAVE OUR DEBT NEEDS THAT WE HAVE TO MANAGE THOSE THOSE PAYMENTS.
IT'S NOT JUST ABOUT GROWING FOR THE LONG TERM, IT'S MEETING THE CURRENT NEEDS.
YEAH. YES. WE HAVE EXCELLENT COMMUNICATION. YEAH.
I'M LOOKING HERE AS AS THE CITY INVESTMENT ADVISOR MEDIA SERVICES INCLUDE, BUT ARE NOT LIMITED TO OUTSIDE OF WHAT WE'VE READ WHAT ELSE DO THEY BRING TO THE TABLE? WHAT ELSE DO THEY DO FOR THE CITY? BECAUSE IT SAYS, BUT ARE NOT LIMITED TO AND INCLUDE THIS, BUT ARE NOT LIMITED TO. ARE THEY DOING ANYTHING ELSE OUTSIDE OF WHAT WE'RE WHAT THE DOCUMENT SAYS.
NOTHING OUTSIDE OF THAT. YOU KNOW, WE ARE IN A NON-DISCRETIONARY AGREEMENT WITH THEM.
SO ALL OF THE TRADES AND ANY INVESTMENTS THAT THEY DO HAVE TO BE UNDER OUR DIRECTION.
THEY ARE REALLY JUST THERE TO ADVISE US IN ANY OPPORTUNITIES THAT WE HAVE AND MAKE SURE THAT WE'RE MEETING ALL THE REQUIREMENTS THAT, THAT WE ARE. OF COURSE, IN COMPLIANCE WITH THE PUBLIC FUNDS INVESTMENT ACT.
SO EVERY YEAR WHEN WE REVIEW THE INVESTMENT POLICY, THERE'S ALWAYS ANOTHER OPPORTUNITY TO SEE IF THERE IS SOMETHING THAT PERHAPS WE ARE MISSING OR, YOU KNOW, THAT WE COULD BRING INTO THE TABLE.
SO IT'S REALLY JUST BEING THERE TO, TO MAKE SURE THAT WE ARE DOING WHAT WE'RE SUPPOSED TO BE DOING AND THAT WE ARE MANAGING THE FUNDS AND, AND OUR VERY LARGE INVESTMENT PORTFOLIO.
THE BEST POSSIBLE WAY. AND I WOULD ADD THAT THEY'RE THERE EXCLUSIVELY.
WE HAVE OTHER CONTRACTS FOR OUR BANKING. WE HAVE OTHER CONTRACTS FOR OTHER TYPES OF FINANCIAL PURPOSES, UNDERWRITING, ETCETERA. FINANCIAL ADVISORS. BUT METER IS EXCLUSIVELY OUR INVESTMENT ADVISOR FOR THE CITY'S PORTFOLIO.
UNDERSTAND, I THINK, AND I THINK YOU SAID THAT THEY REPORT QUARTERLY.
DID I, DID I UNDERSTAND THAT CORRECTLY? YES, SIR.
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ACTION TO UPDATE ANNUALLY OUR INVESTMENT POLICY.OKAY. THANK YOU SO MUCH, CHAIR. GRACEY. THANK YOU.
SINCE WE'RE ON THAT SUBJECT, THAT REALLY WASN'T MY QUESTION, BUT I'LL STAY ON THAT ONE JUST SO I CAN TRANSITION TO MY OTHER QUESTION ABOUT ANOTHER ITEM. I DIDN'T GET IT. PULL IT UP ON THE PROCUREMENT STUFF.
IS THAT OKAY? IT'S JUST A QUICK QUESTION. IT'S MORE OF A RECOMMENDATION THAN ANYTHING ELSE, JACK. SO ON THE INVESTMENT POLICY SIDE, LET ME STAY THERE FIRST.
ON THE PROCUREMENT ONE, JUST REAL QUICK, I I KNOW WE'RE GOING AND THESE ARE THE ONES WE INCREASE THE SIZE TO THE, TO THE AND THIS IS FOR ITEM, THE MONTHLY. WHERE'D IT GO? THE PROCUREMENT REPORT, WHICHEVER ONE THAT WAS J.
J YEAH, THERE IT IS. IT'D BE NICE TO KNOW. I SEE THESE ARE ALL DONE THROUGH THE ADMINISTRATIVE ACTIONS, WHICH WE INCREASED FROM 100 TO 300,000. BUT I'M MISSING THE PIECE TO REALLY UNDERSTAND IF HOW MANY OF THESE ARE ACTUALLY GOING TO SMALL BUSINESSES.
SOME OF THESE ARE. I COULD SEE OUR SOLE SOURCE AND THESE KIND OF THINGS, BUT OF THESE, HOW MANY OF THEM ARE WERE ACTUALLY AWARDED TO SMALL BUSINESSES OR ARE WE TRACKING THAT? AND CAN WE INCLUDE THAT? JUST A YES OR NO? NOT NECESSARILY THE WHO OR THE WHAT, JUST SO THAT WE CAN SHOW WE'RE ACTUALLY LIVING OUT THESE DRIVERS OF OPPORTUNITY.
THANK YOU FOR THE QUESTION. DANIEL GIBSON, CITY MANAGER'S OFFICE COUNCILMAN GRACEY.
I THINK YOU'RE SPOT ON. I THINK WHAT YOU'RE LOOKING AT IS THE INFANCY OF THE PA REPORT.
YEP. GUYS, KEEP THIS IN MIND. THIS THIS REPORT JUST STARTED TWO MONTHS AGO, RIGHT? AND WE'RE STILL COLLECTING DATA. THE DRIVE PROGRAM AND THE ACTUAL ELEMENTS OF THE DRIVE PROGRAM ACTUALLY BECAME ACTIVE WITH OUR PROCUREMENTS THAT STARTED MARCH THE 1ST. RIGHT. SO WE'RE STILL DOING TRAINING. WE'RE STILL HAVING A LOT OF Q AND A BETWEEN THE VENDOR OR SUPPLIER COMMUNITY AND OUR OWN STAFF.
STILL ASKING A LOT OF QUESTIONS. KEEP IN MIND WE HAD THE BID POLICY FOR MORE THAN 20 PLUS YEARS.
AND SO PEOPLE HAD VERY REPETITIVE MOTIONS THERE.
AND THEN WE'RE HAVING TO ACTUALLY GO BACK THROUGH AND KIND OF RE COACH EVERYBODY THROUGH THE PROCUREMENT PROCESS. ONE OF THE THINGS THAT WE ARE WORKING ON IS FUNNY THAT YOU SHOULD ASK THIS QUESTION IS SOME OF THE DATA COLLECTION ELEMENTS.
I'LL GIVE YOU AN EXAMPLE OF ONE THAT WE TALKED ABOUT EARLIER TODAY.
AND I KNOW YOU ASKED FOR A YES OR NO, BUT YOU KNOW, WHEN I GET UP HERE, YOU KNOW HOW IT HAPPENS, RIGHT? LONG STORY SHORT THERE'S DATA THAT WE STOPPED COLLECTING BECAUSE WE WENT FROM A NON GENDER NON RACE RELATED PROGRAM. RIGHT. BUT WE'VE HAD COMMENTARY ABOUT DON'T WE STILL WANT TO COLLECT THAT DATA EVEN THOUGH IT WON'T BE A PART OF A PROCUREMENT DECISION, EVEN THOUGH IT WON'T BE A PART OF HOW WE CONDUCT AND DO BUSINESS, WE STILL WANT TO BE ABLE TO CAPTURE METRICS BECAUSE WE WANT TO UNDERSTAND THE BIGGER PICTURE OF HOW PROCUREMENT PLAYS A ROLE IN OUR CITY.
AND SO WE'RE IN DIALOG WITH THE ATTORNEY'S OFFICE ABOUT HOW BEST TO DO THAT AND NOT INFRINGE ON ANY FEDERAL LAWS OR ANY FEDERAL GUIDANCE THAT WE'VE RECEIVED RECENTLY, BUT WE'RE BUILDING THAT. AND WHAT YOU'RE ASKING FOR ABOUT THE ROLLOUT, THERE'S ACTUALLY A FORECASTED ITEM.
JACK HELPED ME, BUT I THINK IT'S IN AUGUST THAT WE HAD PROMISED TO COME BACK AND KIND OF SHOW OUR FIRST ROLLOUT OF WHERE WE ARE WITH THE DRI PROGRAM, AND WE'RE STILL ON SCHEDULE FOR THAT. I'M JUST PLAYING SEASON.
BUT IF WE'RE GOING TO THAT, I AT LEAST WANT TO MAKE SURE THAT WE'RE MAKING ATTEMPTS, EVEN AT THE ADMINISTRATIVE ACTION LEVEL, TO HAVE TO ALIGN WITH THE DRIVERS OF OPPORTUNITY POLICY OR THE, WHAT IS IT CALLED THE DRIVE POLICY TO ENSURE THAT THERE, THERE IS OPPORTUNITY BECAUSE THESE AGAIN, 300,000 IS A LOT OF OPPORTUNITY FOR SMALL BUSINESSES.
AND WE WANT TO MAKE SURE WE'RE, WE'RE TAKING ADVANTAGE OF THAT AT ALL LEVELS.
AND WE'LL BE READY WHEN THE TIME COMES TO PRESENT THAT.
THANK YOU, THANK YOU, THANK YOU. AND I THINK WE FINISHED UP WHEN I WAS STEPPED OUT FOR A MINUTE ON ITEM M, THE METER PUBLIC FUNDS ITEM. SO NO MORE QUESTIONS ON THAT.
RIGHT. SO THE NEXT ITEM IS ITEM N AS IN NOVEMBER.
OH, DID YOU WANT TO STILL TALK ABOUT J? OKAY, J IS BACK ON THE TABLE SO I LEAVE FOR A SECOND.
YOU ALL GET CRAZY. ALRIGHT, WE'RE BACK ON J. MAYOR DEPUTY MAYOR PRO TEM.
SO I JUST WANTED TO POINT OUT ON THIS WHEN WE DECIDED A FEW MONTHS AGO TO TAKE A LOOK AT BEST PRACTICES OF OTHER CITIES AND THEIR ADMINISTRATIVE ACTION AND RAISING THE THRESHOLD ON SIGNATURES.
AND, YOU KNOW, IT WAS A THOUGHTFUL EXERCISE, MR. GIBSON, THAT COMPARED US TO OTHER CITIES OF OUR SIZE.
[00:25:02]
AND WE FOUND THAT DALLAS WAS REALLY LAGGING IN RAISING SOME OF THOSE AMOUNTS THAT THE CITY MANAGER COULD SIGN ON.AND THERE WAS A LOT OF DISCUSSION ABOUT IT, ABOUT ACCOUNTABILITY AND OVERSIGHT.
AND WE HAD TALKED ABOUT THIS VERY THING, WHICH HERE WE ARE, YOU KNOW, TWO MONTHS INTO THIS, THIS IS THE PENDING ADMINISTRATIVE AWARDS DOCUMENT.
SO THIS THESE HAVEN'T BEEN SIGNED OFF ON YET, BUT THIS IS OUR NOTICE.
COUNCIL MEMBERS. THIS IS THE ACCOUNTABILITY AND OVERSIGHT THAT YOU ALL PROMISED US.
SO WHAT WE HAD FOUND WAS THAT THE LOWER LEVELS LOWER APPROVAL APPROVAL LEVELS, WHILE MAY GIVE SOME, SOME PEOPLE COMFORT THEY WERE GUMMING UP OUR SYSTEM AND PUTTING TOO MANY THINGS INTO A PROCESS THAT WOULD HAVE TO COME BEFORE A COMMITTEE OR COUNCIL.
THERE ARE A LOT OF I MEAN, IT'S GOT THE CONTRACT, IT'S GOT THE TIMING, IT'S GOT THE AMOUNT, ETC. SO IF SOMEBODY OBJECTS OR HAS A QUESTION, THIS IS THE TRIGGER TO COME TO YOU ABOUT THAT.
ABSOLUTELY. AND THANK YOU FOR THAT. AND WE'VE ALERTED DEPARTMENTS AND WE ACTUALLY SEND IT TO EVERY SINGLE DEPARTMENT, A DRAFT OF THE REPORT SAYING, HEY, LISTEN, BECAUSE WHAT WHAT'S REQUIRED NOW THAT WASN'T REQUIRED BEFORE.
BUT COUNCIL WANTED TO STILL HAVE THE OPPORTUNITY FOR OVERSIGHT.
AND I COULDN'T AGREE WITH YOU MORE. DEPUTY MAYOR PRO TEM, THIS IS THE PLACE AND SPACE IN THIS REPORT IS WHERE YOU GUYS STILL HAVE YOUR AUTHORITY AND YOUR CAPACITY TO ASK THE QUESTION. AND WE'VE TOLD DEPARTMENTS TO BE READY.
IN FACT, THE BACK ROOM IS FULL OF PEOPLE WHO ARE HERE WITH THE WITH THE THOUGHT THAT MAYBE YOU MIGHT HAVE A QUESTION ON THERE. SO WITH SO MUCH BEING SAID, YOU KNOW, AND THE NOISE, IT'S JUST THAT THE EFFICIENCY.
THIS IS THIS IS AN EXAMPLE OF BRINGING EFFICIENCY ON THE FRONT END.
BUT THIS IS ALSO AN EXAMPLE OF PUBLIC TRUST. THIS IS A POSTED DOCUMENT.
ANYONE CAN LOOK AT IT. WE'RE TALKING ABOUT IT RIGHT NOW.
IF SOMEBODY HAS AN ISSUE THERE IS A POINT TO INTERVENE BEFORE THESE ARE SIGNED.
WHEN WOULD YOU SAY THESE ARE BEING SIGNED? WHEN WE GET THIS REPORT.
IS THAT SIGNATURE GOING TO BE HAPPENING IN THE NEXT 30 DAYS? 60 DAYS? YES, MA'AM. I THINK IN THE NEXT 30 DAYS WOULD BE VERY LOGICAL.
SO WHAT WHAT YOU WILL LIKELY SEE IS A MATRICULATION BETWEEN IT BEING PENDING AND THEN THE NEXT REPORT YOU WILL SEE THE NEXT MONTH, LIKELY YOU WILL SEE IT IN THE COMPLETED STAGE.
OKAY, SO IT'S YOUR KRISPY KREME DONUT. YOU YOU GET IT WHEN IT COMES TO YOU NICE AND FRESH.
AND THEN IT'S GOING TO BE SIGNED IN IF THERE'S NO OBJECTION.
AND THEN WE'LL GET AN AUDIT LATER TO SEE HOW THIS IS DONE.
ABSOLUTELY. OKAY. THANK YOU. THANK YOU. ANYBODY ELSE.
ALL RIGHT. WE ARE MOVING BACK INTO THE ORDER HERE.
QUICK QUESTION, JACK, THIS IS A PRE BUDGETED ITEM, RIGHT? THIS THIS IS ALREADY WE'RE NOT ASKING FOR ANYTHING OUTSIDE THE REGULAR BUDGET.
THAT IS CORRECT. IT'S REALLY MR. GIBSON ITEM.
SO I'M GOING TO LET HIM JUST. HE MIGHT AS WELL JUST STAY UP THERE.
OUR CIO IS COMING UP AS WELL. HE'LL BE MY WINGMAN ON THIS.
BUT BUT ABSOLUTELY THESE THESE ARE BUDGETED DOLLARS.
I T LIKE ANY OTHER DEPARTMENT, SOMETIMES HAS VACANCIES.
AND THIS IS AN EXCELLENT WAY FOR US TO FILL THOSE GAPS, THOSE SERVICE GAPS.
OR WHEN WE HAVE A PROGRAM THAT WE'RE GOING TO LAUNCH, IT ALLOWS FOR SURGE CAPACITY, AND IT MAY ONLY BE FOR 3 OR 4 MONTHS WHILE WE'RE GOING TO STAND UP A NEW PROGRAM OR A NEW SOFTWARE PLATFORM.
AND I THOUGHT, OH, COME ON OVER, JEFF. AND LET ME ALSO SAY IT'S AN $18 MILLION, FIVE YEAR AGREEMENT.
SO JUST WANT TO MAKE SURE YOU REALIZE THAT ALL $18 MILLION IS NOT IN THE CURRENT BUDGET.
IT IS BUDGETED OVER TIME AND IT'S ENCUMBERED AS USED NOT UP FRONT.
THAT IS CORRECT. AND IT IS BUDGETED AS AS THE CHAIR SAID, THIS IS A BUDGETED ITEM.
THAT WAS MY ONLY QUESTION. ANYBODY ELSE? NOPE.
ALL RIGHT. THANK YOU VERY MUCH. ITEM. OH, I'M NOT GOING TO READ IT ALL, BUT IT'S A CDBG.
INVESTMENT REPORT. ALSO USE OF UNSPENT FUNDS.
AND IS THIS GOING TO BE AN ITEM. THIS ISN'T AN UPCOMING AGENDA ITEM AS WELL, JACK.
YES, SIR. IT IS. ON TOMORROW'S AGENDA. THERE IS A PUBLIC HEARING.
AND AT THE CLOSE OF THE PUBLIC HEARING SEEKING YOUR APPROVAL FOR A REALLOCATION OF PRIOR YEAR FUNDS.
[00:30:04]
AND SO WE DID POINT OUT, AND THIS WAS BRIEFED ALSO TO THE ECONOMIC DEVELOPMENT COMMITTEE ON MARCH THE 2ND BECAUSE WE HAD NOT CONSIDERED ADDING A USE OF FUNDS FOR PAYMENT OF A SECTION 108 LOAN.I SAW IN THE MEMO AS WELL THAT THE YOU'RE ASKING TO EXPAND THE DEFINITION OF WHAT WE CAN SPEND UNSPENT FUNDS ON TO, FROM PUBLIC IMPROVEMENT PROJECTS TO PUBLIC IMPROVEMENT PROJECTS AND OTHER ELIGIBLE USES, WHICH IS PRETTY BROAD EXPANSION, AT LEAST IN MY MIND.
YES. TYPICALLY WHEN WE HAVE UNSPENT FUNDS, WE USUALLY DIRECT THOSE FUNDS FOR PUBLIC IMPROVEMENT TYPE PROJECTS, WHICH ARE ONE TIME, ONE USE BECAUSE OUR REPROGRAMING DOLLARS ARE ONE TIME FUNDS.
IN THIS CASE, IN ORDER TO BE ABLE TO USE THE FUNDS FOR THE DEBT.
SO BY ADDING OTHER ELIGIBLE USES, IT ALLOWS US TO MAKE THAT PAYMENT.
UNDERSTOOD. AND I UNDERSTAND WHY WE NEED TO MAKE THAT PAYMENT OBVIOUSLY, BUT THE ANY ADDITIONAL EXPENDITURES ARE PLANS FOR STAFF TO SPEND CDBG IN AND THE FUTURE. THEY DO ALWAYS COME TO THIS COMMITTEE BEFORE IT'S APPROVED, RIGHT? THEY DO. OKAY. SO THIS THIS CATEGORY, OTHER ELIGIBLE USES, WE'LL WE'LL GET TO SEE WHAT THOSE RECOMMENDATIONS ARE.
IF YOU GO IN THE FUTURE BEYOND THE SCOPE OF JUST INTEREST PAYMENTS TO HUD.
RIGHT. OTHER THAN THE PUBLIC IMPROVEMENT PROJECTS.
YES, SIR. OKAY. BECAUSE WE WE DIRECTED FOR PUBLIC IMPROVEMENT.
THOSE PROJECTS THIS ONE ELDERLY ELIGIBLE USE.
YES. WE WOULD. ANYTHING OTHER THAN THOSE? YES.
SOUNDS GOOD. COLLEAGUES, I'LL WE'LL DO COMMITTEE MEMBERS FIRST.
DEPUTY MAYOR PRO TEM. THANK YOU. OKAY, SO THIS IS BRINGING BACK MEMORIES OF SIX YEARS AGO WHEN I WAS ON COMMUNITY DEVELOPMENT COMMISSION, BECAUSE I REMEMBER THE DISCUSSION AROUND THE LORENZOT AND ABOUT THEM PAYING.
AND I THINK IF IT'S NOT PAID OR IT GOES INTO DEFAULT, IT CAN THREATEN OUR HUD FUNDS IN OTHER WAYS.
IT'S BEEN SIX YEARS. SO I THIS IS PRETTY CRITICAL AND I'M CORRECT.
WHEN THE CITY USES, GETS A 108 LOAN FROM HUD.
CDBG FUNDS ARE USED AS SECURITY. SO IN THIS CASE, IF THAT PAYMENT IS NOT MADE, THEN THE PAYMENT COMES OUT OF THE CITY'S LINE OF CREDIT ANYWAY. OKAY, SO THAT'S NOT GOOD. AND SO WHAT IT SOUNDS LIKE THEY ARE THERE WILL BE THE CITY WILL COVER THIS, BUT THERE WILL BE A REPAYMENT SCHEDULE. CAN YOU TELL ME SOMETHING ABOUT THAT? MARIA SMITH, ASSISTANT DIRECTOR, OFFICE OF ECONOMIC DEVELOPMENT.
SO THE IDEA IS THAT OVER THE NEXT COUPLE OF MONTHS, THE HOTEL WILL BE SOLD AND THEN THE CITY WILL BE REPAID FROM THE PROCEEDS OF THE HOTEL SALE. OKAY. THANK YOU. LET'S SEE. GOING THIS WAY.
NOBODY ELSE ON THE COMMITTEE MR. ROTH. THANK YOU.
I THINK I GOT MY QUESTION ANSWERED, BUT I JUST WANTED TO MAKE SURE.
AS I RECALL, THERE WAS A GUARANTEE ALSO BY BY THE TRUST OR BY SOME OTHER GROUP THAT WOULD ALSO BE AN EXTRA SECURITY FOR THE CITY TO GET PAID BACK IN THE EVENT OF A SHORTFALL IN THAT IN THAT TRANSACTION.
ABSOLUTELY. YES, THAT IS CORRECT. SO WHEN THE CITY ENTERED INTO A FORBEARANCE AGREEMENT WITH THE BORROWER BACK IN 2023, ONE OF THE THINGS THAT WE ADDED TO THAT FORBEARANCE AGREEMENT WAS A GUARANTEE FROM A TRUST.
THANK YOU AND THANK YOU. WE ARE. I THINK WE'RE THROUGH THE MEMOS.
[00:35:07]
WE ARE GOING TO GO BACK NOW TO THE BRIEFINGS, STARTING WITH ITEM D AS IN DELTA.IT'S THE DALLAS HOUSING FINANCE CORPORATION AND PUBLIC FINANCE CORPORATION.
OVERVIEW AND SUMMARY OF TAX EXEMPT PROPERTIES.
COLLEAGUES, WE HAD INVITED MR. GIAQUINTO HERE REALLY TO FOCUS ON THE, THE, THE TAXATION ISSUES AND THE FINANCIAL IMPACT OF THE CITY, NOT NECESSARILY HOW THE HOUSING ITSELF IS, IS COMPILED, BUT IN THE DIFFERENT CATEGORIES, BUT REALLY HOW THE FINANCIAL PIECE IMPACTS OUR BUDGET.
AND LET'S FOCUS ON THE FINANCIAL PIECE OF THIS SINCE THE HOUSING PIECE WAS COVERED.
THANK YOU. THANK YOU SO MUCH, CHAIR WEST. AARON QUINTO, GENERAL MANAGER OF THE DALLAS HOUSING FINANCE CORPORATION, AS WELL AS THE DALLAS PUBLIC FACILITY CORPORATION, APPRECIATE THE CHANCE TO GET HERE AND GIVE THIS PRESENTATION AND I HAVE NO PROBLEM SPEAKING LESS. I HATE SPEAKING, SO THERE WE GO.
WE JUST START WITH SLIDE TWO. WHAT IS HFC, PFC? I THINK EVERYONE'S FAMILIAR NOW, BUT WE TO REMIND YOU ALL, WE'RE INSTRUMENTALITIES OF THE CITY.
WE SERVE THE CITY'S INTEREST. YOU GUYS APPOINT THE BOARD OF DIRECTORS.
THEY SERVE AT YOUR PLEASURE. BUT THEY ARE SEPARATELY LEGAL OR SEPARATE LEGAL ENTITIES.
SORRY. WHO DO THEY SERVE? IN SLIDE THREE HERE, WE HAD A BUNCH OF OCCUPATIONS LISTED.
THESE ARE YOUR NEIGHBORS, THE FOLKS THAT SERVE IN THESE MIDDLE INCOME JOBS CUSTODIANS, TEACHERS, SALES REPS, MAIL CARRIER CARRIERS, AND THE LIKE.
THESE AREN'T FOLKS THAT DON'T WORK. THESE ARE REGULAR FOLKS THAT JUST HAVE HAVE LOWER INCOMES THAN, YOU KNOW, YOUR HIGHER PAYING JOBS HERE THAT STRUGGLE TO PAY RENT EVERY MONTH JUST LIKE EVERYONE ELSE. PROJECT OVERSIGHT.
LOOKING AT SLIDE FOUR HERE. I WANT TO EMPHASIZE THAT THERE ARE MANY EYES ON EACH PROJECT.
PFC SAME. WE ALSO HAVE OUTSIDE PEOPLE SUCH AS LENDERS, UNDERWRITERS.
WE HAVE THE TEXAS ATTORNEY GENERAL'S OFFICE THAT HAS TO APPROVE ALL OF OUR BOND TRANSACTIONS.
SO ALL OF THESE, THESE PROJECTS ARE UNDER A LOT OF SCRUTINY.
AND THERE IS ALSO ONGOING MONITORING IN, IN ADDITION TO THE FINANCIAL APPROVALS WE HAVE.
CITY OF DALLAS, T-H-E-A, HUD AND THE HFC BOARD AND OUR STAFF THAT MONITORS THESE PROJECTS.
ALL RIGHT. SO LOOKING AT THE FUNDING. HOW HOW ARE THESE PROJECTS FUNDED? RIGHT. AND SO THERE'S THERE'S SEVERAL DIFFERENT ASPECTS THAT FUNDS AFFORDABLE HOUSING HERE IN THE CITY AND NATIONWIDE.
FIRST, YOU HAVE YOUR LIGHTTECH PROGRAM. THAT'S WHAT WE CALL TAX CREDITS.
IT'S JUST A VERY LOW COST OF CAPITAL WAY TO TO GET A PROJECT BUILT.
AND LASTLY, THE PROPERTY TAX EXEMPTIONS, WHICH WHAT IS WHAT WE'RE HERE TO TALK ABOUT TODAY.
THEY'RE THEY'RE JUST, YOU KNOW, FLEECING THE TAXPAYERS.
THAT'S NOT THAT'S NOT REALLY THE CASE. NOW, IT MAY BE FOR SOME, BUT FOR THE VAST MAJORITY OF DEVELOPERS THAT WE WORK WITH, THERE'S A FINANCIAL GAP, NOT BECAUSE OF THEM TAKING PROFITS.
IT'S BECAUSE THE REVENUE THAT THEY CAN COLLECT ON THOSE LOWER INCOME UNITS IS LIMITED.
SO IT COSTS THE SAME TO BUILD A MARKET RATE PROJECT THAN IT DOES AN AFFORDABLE PROJECT.
AND SO HOW DO WE FILL THAT GAP? WELL, IT'S THROUGH THESE FUNDING SOURCES, THROUGH THE LIGHTTECH PROGRAM OR THROUGH PARTNERSHIP WITH OUR ORGANIZATIONS THAT PROVIDE TAX EXEMPTIONS. AND SO THE IDEA IS THAT WE USE THESE TAX EXEMPTIONS AND USE THE SAVINGS ON THOSE OPERATING COSTS AND FLIP THEM RIGHT BACK TO THE RESIDENTS TO CHARGE LOWER RENTS.
[00:40:09]
CONSTRUCTION OR UNDER RENOVATION. WE SERVE A WIDE VARIETY OF INCOME BANDS.WE WENT OVER A DISCUSSION THIS MORNING ABOUT WHAT THOSE INCOME BANDS MEAN.
I THINK YOU GUYS ARE FAMILIAR WITH IT. REALLY, IT JUST MEANS WHEN WE SAY 60% UNIT, THAT MEANS THAT WE, WE QUALIFY THOSE RESIDENTS THAT ARE RENTING THOSE UNITS TO MAKE AT LEAST 60% OF THE AREA MEDIAN INCOME OR BELOW.
THEY CAN'T MAKE ABOVE THAT TO, TO QUALIFY FOR THOSE REDUCED INCOME UNITS.
I THINK WE CAN SKIP THE LATEX SLIDE. WE'VE, WE'VE KIND OF GONE OVER THAT A LITTLE BIT.
AND SO ON A PER UNIT BASIS, THAT'S ABOUT $213 A YEAR TO SUBSIDIZE THIS PROGRAM.
SO THIS THIS ISN'T CASH FROM THE GENERAL FUND.
IT'S NEVER CASH. IT'S REALLY JUST FOREGONE REVENUE.
AND SO YOU GUYS AREN'T HAVING TO PICK ANYONE'S POCKET.
IT'S REALLY JUST IF WE HADN'T HAVE CONSTRUCTED THIS BUILDING, IT WOULDN'T EXIST.
RIGHT. AND SO WE'RE USING THOSE FUNDS THAT THAT PROMISE OF FUTURE TAX REVENUE TO GET SOMETHING NOW.
AND I THINK IT'S A VERY EFFICIENT INVESTMENT OF FOREGONE TAXES TO HOUSE AND TO PROVIDE SAFE AND SECURE AND SANITARY HOUSING FOR THOSE WHO NEED IT MOST. I THINK SINCE 2011, THIS IS IMPORTANT TO NOTE.
THE TOTAL FORGONE TAXES FOR THE ENTIRE PROGRAM SINCE 2011 HAS ONLY COST US ABOUT $4.8 MILLION.
AND, YOU KNOW, I MAKE THIS COMPARISON. SOME PEOPLE LIKE IT, SOME PEOPLE DON'T.
AND THEN ON PAGE TEN IS JUST A LIST OF ALL THESE TAX EXEMPT PROPERTIES.
HOW MANY UNITS AND HOW MUCH TAXES PER YEAR WE HAVE FOREGONE IN ORDER TO SUPPORT THESE DEVELOPMENTS.
ALL RIGHT. LOOKING AT PAGE 11, LOOKING AT THE PFC AS WELL.
THERE ARE 19 TOTAL PROPERTIES AS OF DECEMBER 12TH ARE IN LISA, WHICH MEANS, YOU KNOW, WE'VE FINISHED CONSTRUCTION AND NOW WE'RE TRYING TO FILL THEM UP WITH RESIDENTS. THAT TAKES, YOU KNOW, 18 MONTHS TO TWO YEARS, AND THEN SEVEN ARE STILL UNDER CONSTRUCTION AND WE HAVE A HEALTHY PIPELINE.
BUT THAT REPRESENTS ABOUT 3800 UNITS NOW WITH THE PFC.
IT'S A DIFFERENT PROGRAM AND IT SERVES A LITTLE HIGHER INCOMES.
IT'S MORE MIDDLE INCOME FOLKS. THE MAJORITY OF THEM MAKE BETWEEN 60 AND 80% OF THE AMI.
SO WE'RE NOT HITTING THOSE LOWER INCOME BRACKETS AS MUCH.
BUT AGAIN, THERE'S STILL A NEED. THIS ALSO IS A TOOL WE USE TO PROVIDE MARKET RATE UNITS IN AREAS THAT HAVEN'T SEEN A LOT OF NEW INVESTMENT. WHEN YOU'RE LOOKING AT, YOU KNOW, TRYING TO ATTRACT NEW INVESTMENT TO AREAS OF THE CITY THAT HAVEN'T SEEN IT, THIS IS A GOOD TOOL TO USE BECAUSE WE CAN BRING MARKET RATE UNITS TO AREAS WHERE IT CAN'T SUPPORT A FULLY MARKET PROPERTY.
AND SO BY DOING THAT, WE, WE INCREASE THE QUALITY OF THE NEIGHBORHOOD, WE INCREASE THE QUALITY OF THE HOUSING STOCK, AND WE PROVIDE LOWER INCOME RESIDENTS WITH NEW, VERY HIGH QUALITY PLACES TO LIVE.
AGAIN, ON PAGE 1212, WE'RE JUST LOOKING AT THE ARMY RESTRICTIONS.
IF YOU'RE INTERESTED IN THAT, LET ME KNOW AND I CAN I CAN GO DEEPER INTO IT.
BUT AGAIN, ON PAGE 13 HERE, THERE'S 19 TAX EXEMPT PROPERTIES IN 2025.
YOU KNOW, WE'RE HOUSING ABOUT 3800 FAMILIES FOR $200 A YEAR FOR EACH UNIT.
I THINK THAT'S THAT'S A VERY, VERY IMPACTFUL NUMBERS, AT LEAST TO ME.
SO WITH THAT, I'M HERE FOR ANY QUESTIONS YOU ALL MIGHT HAVE.
SURE, I'LL KICK IT OFF AND THEN I'LL START THIS TIME TO MY LEFT.
THANK YOU FOR BEING HERE. JUST FOR MY COLLEAGUES.
THE REASON WHY WE HAD INVITED THE PFC FOLKS TO COME HERE IS BECAUSE THERE WAS A REQUEST BY COUNCIL MEMBERS AT ONE POINT TO REPORT ON THE TAX LOSS OF THE CITY. YOU KNOW, WHEN WE'RE APPROVING THESE ITEMS, AND I THOUGHT IT WOULD BE GOOD TO ALSO HAVE THE
[00:45:06]
COUNTERBALANCE OF THAT, LIKE WHAT IS THE, THE BENEFIT TO THE CITY? AS OPPOSED TO JUST HAVING THE TAX LAW SO WE CAN SEE THE FULL PICTURE.SO THAT'S WHY AARON'S HERE IN THE FIRST PLACE.
WHAT YOU DIDN'T SAY IN THE PRESENTATION. AND I THINK I HAVE THE NUMBER RIGHT.
IS THAT RIGHT? CORRECT. SO IF WE DIDN'T HAVE THESE CORPORATIONS AND THEY'RE NOT VIABLE, WE WOULD HAVE HAD 74% LESS AFFORDABLE HOUSING PRODUCED IN THE CITY THAT YEAR. THANK YOU. YES. DO YOU HAVE A FIGURE ON HOW MUCH OF OUR AFFORDABLE HOUSING IS ATTRIBUTED FOR 2025 TO THE CORPORATIONS? YOU KNOW, I DON'T HAVE THAT YET, BUT I'M SURE WE WILL BE COMING SHORTLY WITH WITH A LOT OF DATA.
AGAIN, I MENTIONED THIS MORNING, WE'VE JUST CONTRACTED WITH A PROFESSOR AT UTS SOUTHWEST.
WE'RE GOING TO GO, I THINK, A TWO YEAR STUDY TO GATHER PRETTY MUCH EVERY DATA POINT WE CAN, PARTICULARLY IN DALLAS, FOR HOW THESE PROGRAMS HAVE AFFECTED THE COMMUNITIES AND WHAT'S THE BEST WAY TO GO ABOUT OPERATING THEM IN THE FUTURE.
AND I THINK, YOU KNOW, IT'S AN IMPORTANT THING TO DETERMINE, YOU KNOW, HOW ARE WE DOING, RIGHT? I DON'T I DON'T PROFESS TO KNOW EVERYTHING. I DON'T I DON'T THINK THAT WHAT I THINK IS ALWAYS RIGHT.
WELL, I DO THINK WHAT I THINK IS ALWAYS RIGHT. BUT, YOU KNOW, I NEED DATA TO SUPPORT IT.
AND SO I'M, YOU KNOW, I KNOW THAT THERE ARE THINGS THAT WE DON'T KNOW YET ABOUT OUR PROGRAMS AND SPECIFICALLY WITH THE PFC AND THE HFC TWO, WE'VE WE'VE SEEN INCREDIBLE GROWTH OVER THE LAST 5 OR 6 YEARS.
YOU KNOW, LET'S, LET'S TAKE A BEAT AND SAY, ALL RIGHT, NOW WE'VE GOT ALL THIS NEW PRODUCTION.
WHAT IS ACTUALLY HAPPENING IN THE COMMUNITY, RIGHT.
AND SO WE NEED SOME TIME TO GATHER THAT DATA.
BUT IN THE MEANTIME, LIKE COUNCIL MEMBER WEST SAID, YOU KNOW, WE HAVE DONE A VERY, VERY LARGE SHARE OF ALL OF THE AFFORDABLE HOUSING PRODUCTION, AT LEAST FOR THE MULTIFAMILY SECTOR.
AND IT'S BEEN SUCCESSFUL IN OUR CITY, RIGHT. SO WE'RE PROUD OF THAT WORK WE'VE DONE.
I THINK THE DATA WILL BEAR OUT THAT WE HAVE SEEN SOME REALLY GOOD RESULTS.
INDIVIDUALLY. THANK YOU. AND THEN I WANT TO JUST HIGHLIGHT FOR THE PUBLIC BECAUSE WE KIND OF BREEZED THROUGH THESE SLIDES, WHICH WE DO APPRECIATE. SLIDE NINE. YOU, YOU TALK ABOUT HOW ON, ON BULLET THREE.
THIS THIS IS FOR THE HFC. THE CITY SUBSIDY OF $18 PER MONTH PER UNIT PROVIDES OVER 9000 FAMILIES ACCESS TO SAFE AND HIGH QUALITY AFFORDABLE HOUSING, $18 PER MONTH PER UNIT, 9000 FAMILIES.
AND THEN ON SLIDE 12, IT'S THE PFC BULLET THREE CITY SUBSIDY OF $33 PER MONTH PER UNIT PROVIDES OVER 3800 FAMILIES ACCESS TO SAFE AND HIGH QUALITY AFFORDABLE HOUSING. AND YOU KNOW, THAT'S OUR WORKFORCE.
THAT'S OUR TEACHERS, THAT'S OUR NURSES, OUR HOSPITAL TECHS, OUR CITY EMPLOYEES THAT WE ARE ABLE TO KEEP IN THE CITY AND THEN NOT HAVE TO MOVE TO GRAND PRAIRIE OR ARLINGTON OR SOMEWHERE BECAUSE WE HAVE SOME HOUSING FOR THEM AND WE KNOW WE NEED MORE, RIGHT? DEFINITELY, DEFINITELY NEED MORE. OKAY, WELL, THAT'S MY QUESTIONS.
I'LL GO TO VICE CHAIR. THANK YOU. DIRECTOR AQUINO.
I WOULD JUST ASK WHEN YOU DO THIS STUDY AND YOU'RE BEGINNING TO MEASURE, YOU KNOW WHAT YOU'RE WORKING TO MEASURE WITH RESPECT TO OTHER AFFORDABLE HOUSING UNITS THAT ARE COMING ONLINE FROM THE FCS AND THE HFCS.
I ENCOURAGE YOU TO MEASURE THE QUALITY OF LIFE IN THOSE COMPLEXES.
AND AN EASY ONE IS THE CRIME IN THAT COMPLEX BECAUSE I HAVE COMPLEXES, AS YOU WELL KNOW, IN MY DISTRICT WHERE THE RENTS COULD EVEN BE LOWER THAN 50%, AM I. BUT SO THERE'S HOUSING, BUT THE QUALITY OF LIFE IS VERY CHALLENGING AND WE HAVE A LOT OF CRIME.
SO I THINK WHEN YOU'RE DISTINGUISHING THIS, IT CAN'T JUST BE INCOME LEVELS AND, AND RENT PAYMENTS.
YOU'VE GOT TO LOOK AT THE WHOLE PICTURE, WHICH IS WHAT I USUALLY CALL QUALITY OF LIFE.
AND THAT CAN MEAN A LOT OF DIFFERENT THINGS. IT CAN MEAN ACCESS TO CITY RESOURCES.
IT CAN MEAN PROXIMITY TO SCHOOLS, YOU KNOW, WHATEVER, WHATEVER THOSE THINGS ARE.
I ENCOURAGE YOU TO TO MEASURE THAT AS WELL, SO THAT YOUR STUDY IS TELLING US MORE ABOUT WHAT THAT FAMILY OR THAT PERSON IS EXPERIENCING IN THIS PRODUCT VERSUS THE, THE NATURALLY OCCURRING AFFORDABLE.
OH, THAT'S AN EXCELLENT POINT. YOU KNOW, A LOT OF TIMES WE JUST BOIL IT DOWN TO DOLLARS AND CENTS. BUT, YOU KNOW, OUR STATED MISSION IS TO PROVIDE SAFE AND SANITARY.
SO NOT JUST CHEAP, BUT NOT JUST SAFE. RIGHT? EXACTLY.
THANK YOU. THANK YOU. ANYONE ELSE ON THIS SIDE?
[00:50:03]
CHAIRMAN JOHNSON? SURE. I WAS TALKING TO COUNCIL MEMBER GRACEY HERE.A LOT OF TIMES IN MY DISTRICT OR OUR, OUR COMMUNITIES, WE HAVE THE LOW INCOME HOUSING AND NOT SO MUCH OF THE MARKET RATE. IF I CAN SAY IT THAT WAY AND THAT THAT'S THAT HAS BEEN THE STORY IN OUR COMMUNITY WHERE EITHER WE GET LOW INCOME OR WE'RE GETTING HOUSING, HOUSING, SINGLE FAMILY HOMES TWO STORY BUILDING THAT DOES NOT MATCH ANYTHING THAT HAS TO DO WITH THE COMMUNITY.
AND I CALL IT PREDATORY BUILDING WHEN I'M SEEING THOSE PREDATORY BUILDINGS, WHEN I'M SEEING HOUSES, TWO STORY HOUSES WHERE YOU CAN LOOK OVER INTO SOMEONE'S BACK YARD WHEN YOU HAVE A FLOW THAT'S GOING IN, IT'S IN MY OPINION, WHEN I'VE SPOKEN WITH THE COMMUNITY, IN MY OPINION IS, IS, IS NOT TO BETTER THE COMMUNITY, IT'S JUST TO PUT MORE MONEY IN THEIR POCKETS.
SO I WANT TO KNOW WHAT CAN WE DO TO, WELL, TELL ME THE DIFFERENCE BETWEEN THE HFC, THE PFC SEE, AND THE LOW INCOME HOUSING TAX CREDIT, IF YOU CAN BREAK THAT DOWN, BECAUSE I HAVE PEOPLE LISTENING.
SO I WANT TO BREAK THAT DOWN. AND WHICH ONE WILL FIT IN IN OUR COMMUNITY WHEN WE'RE TRYING TO DO MARKET RATE MULTI UNIT HOUSING. SURE. THANK YOU FOR THE QUESTION.
CHAIR JOHNSON, I DO IT GOOD. YOU UNDERSTAND EVERYTHING.
I'LL DO MY BEST. I KNOW, I KNOW, I DID A GUMBO RIGHT THERE.
THERE'S A LOT OF ACRONYMS. THERE'S A LOT OF, YOU KNOW, PEOPLE KIND OF MASH THEM TOGETHER BECAUSE THERE'S THE SAME MISSION, RIGHT? TO PROVIDE SAFE, SECURE, SANITARY, AFFORDABLE HOUSING. BUT WHAT DOES THAT MEAN? AND FOR WHO? AND SO I'LL JUST START LIGHTTECH IS NOT A.
LIGHTTECH IS A FEDERAL PROGRAM THAT PROVIDES FINANCING TO TO BUILD SOME OF THESE THESE HOUSING PROGRAMS. RIGHT. SO THERE'S A LITTLE DIFFERENCE THERE. NOW OUR HFC ORGANIZATION, IT WILL USE THE LIGHTTECH PROGRAM TO PROVIDE LOW INCOME UNITS AND TO RENOVATE PROPERTIES TO TO PROVIDE HOUSING TO THE COMMUNITY.
NOW THE PFC ALSO PROVIDES HOUSING, BUT THROUGH A DIFFERENT FINANCING MECHANISM, THEY DON'T.
HERE IN DALLAS, WE DON'T USE LIGHTTECH. WITH THE PFC, WE USE REALLY JUST THE TAX EXEMPTION.
AND SO THE 50% OF THE UNITS THAT ARE MARKET RATE WITH THE PFC WILL KIND OF PROP UP THE OTHER 50% OF THE UNITS THAT ARE RENT RESTRICTED. AND SO THE IDEA IS THAT THE TAX EXEMPTION, YOU WILL USE THOSE SAVINGS TO, TO FUND BASICALLY THE RENT RESTRICTED UNITS ON THOSE PROPERTIES. DID I GET TO DO A GOOD JOB? HE DID.
I'M ALSO TRYING TO GET AWAY FROM THE PREDATORY BUILDERS THAT'S DOING WHAT I JUST SUGGESTED.
AND I SPOKE WITH CHAS WEST ABOUT THIS NOT TOO LONG AGO THAT WE'RE TRYING TO BUILD MORE DENSITY IN DISTRICT FOUR BECAUSE WE'RE NEIGHBORING DISTRICTS HERE AND ESPECIALLY WHEN WE'RE TRYING TO DO THE HAVERING PARK AND WHAT WE'RE LOOKING AT IN DEVELOPMENT IN THAT AREA.
SO WILL THE PFC OR THE HFC WORK. WHICH ONE WOULD BE BETTER IF WE'RE TRYING TO BUILD MORE DENSITY IN CERTAIN PARTS OF OUR COMMUNITY TO TRY TO BRING MORE AMENITIES IN, IN OUR COMMUNITY. SO WHICH ONE WOULD PROBABLY WORK BETTER FOR THAT? WOULD IT BE THE PFC OR THE HFC? UFC. SO HONESTLY, THE QUALITY OF THE PFC AND THE HFC BUILDINGS.
IF YOU DROVE BY THEM AND IF YOU WALKED THROUGH THEM, THEY WOULD LOOK THE SAME. IT'S REALLY THE DIFFERENCE IS HOW THEY'RE FINANCED AND WHO THEY'RE RESTRICTED TO AND WHAT WHAT RENT LEVELS ARE RESTRICTED TO. SO IF YOU'RE LOOKING FOR DENSITY, EITHER ONE WILL WORK BECAUSE THEY BOTH FOCUS ON MULTIFAMILY HOUSING, RIGHT? IT'S REALLY JUST THE PREFERENCE. I MEAN, OUR ORGANIZATIONS ARE LIMITED TO THE PROPOSALS THAT THE BUILDERS BRING US.
SO IF YOU KNOW GOOD BUILDERS, AND IF YOU HAVE A SPECIFIC AREA OF YOUR DISTRICT THAT YOU WANT TO SEE SOMETHING IN, AND THEY COME TO YOU WITH PROPOSALS, LET ME KNOW.
[00:55:03]
THAT'S, THAT'S OUR GOAL IS TO WORK WITH EACH COUNCIL MEMBER TO TO BRING THE DISTRICT WHAT EACH DISTRICT NEEDS, RIGHT? BECAUSE EVERYBODY HAS A DIFFERENT NEED IN THEIR DISTRICT. ABSOLUTELY.AND DEFINITELY GOING TO GET WITH YOU. I LOVE WHAT CHARLES WEST IS DOING.
LOVE THAT. EVEN WHEN I WAS A TRUSTEE AND NOW WORKING WITH HIM AND SEEING THE WORK GET DONE, LITERALLY RIGHT, RIGHT ACROSS THE STREET FROM MY DISTRICT.
I THINK THEY'RE EXCITED TO SEE SOME STRONG DEVELOPMENT COME THROUGH.
THAT'S NOT PREDATORY, BUT ACTUALLY IS A BENEFIT TO DISTRICT FOUR.
AND I'M LOOKING AT MARKET RATE, ETC.. SO THANK YOU SO MUCH. AND I LOOK FORWARD TO WORKING WITH BOTH OF YOU GUYS. THANK YOU CHAIR. THANK YOU, THANK YOU. GREAT COMMENTS. AND THERE'S LOTS OF GOOD STUFF HAPPENING ALL OVER OAK CLIFF.
YOU KNOW WE DEFINITELY WANT GOOD HOUSING FOR OUR PEOPLE DOWN THERE.
THE CHAIRMAN GRACEY DID YOU. YEAH. JUST TO PROVIDE AGAIN, THANK YOU FOR THIS.
AND I KNOW THIS IS ABOUT TO BE A LOADED QUESTION.
I'M TELLING YOU THAT IN ADVANCE, BUT I WANT TO I KNOW WHERE MY COLLEAGUE WAS GOING.
SO I WANT TO ASK THIS QUESTION. WITH THE HISTORY OF THE HFC PROJECT PRODUCTS AND THE PFC PRODUCTS THAT WE HAVE, IT MAY BE TOO SOON TO TELL. BUT WE TALK ABOUT THE INTENT OF THE ECONOMIC BENEFIT OF EACH ONE OF THESE, AND HOW IT'S SUPPOSED TO TO TO SPARK SOME OF THAT ECONOMIC DEVELOPMENT IN AND AROUND.
WHICH ONE HAS DONE THAT THE BEST SO FAR? SO I TOLD YOU IT'S LOADED.
SO AND IF THERE'S I RECOGNIZE THE SHORT ANSWER IS.
AND I'M GONNA GIVE YOU A CAVEAT. YOU CAN'T SAY IT'S TOO SOON TO TELL.
ARE THOSE FIGHTING WORDS? ARE YOU GOING TO GET. IT IS A BIT RHETORICAL.
IT IS. AND I SAY IT A LITTLE BIT, BUT BUT I NEED YOU TO UNDERSTAND KIND OF.
THAT'S WHERE A LOT OF US ARE, ARE. BECAUSE IN SOME CASES, DEPENDING ON WHAT SIDE OF MY DISTRICT YOU'RE IN, NEITHER ONE OF THEM WILL DO WHAT IT'S SUGGESTING THAT WE COULD DO OR WE HAVEN'T SEEN THE RESULTS YET.
SO AS WE'RE GOING THROUGH AND HOW WE COMMUNICATE THESE TO THE COMMUNITY, HOW DO YOU KNOW WHICH ONE MAKES THE MOST SENSE VERSUS WHAT MY COLLEAGUE CHAIR MENDELSOHN SAID THIS MORNING, WHERE MANY OF THESE REALLY BENEFIT THE DEVELOPERS WITH A SECONDARY BENEFIT TO THE COMMUNITY.
AND THEN THE PLANNED ECONOMIC BENEFIT DOWN THE ROAD KIND OF A THING.
AND IN SOUTHERN DALLAS, WE JUST QUITE HONESTLY HAVEN'T SEEN THAT BECAUSE GIVEN THE INFLUX OF LOW INCOME THAT WE HAVE, YOU THINK IT WOULD HAVE HAPPENED BY NOW IF IT DIDN'T? SO I'M JUST TRYING TO FIGURE OUT HOW DO WE ASSESS WHICH ONE MAKES THE MOST SENSE IN A GIVEN AREA.
AND I KNOW WE'LL TALK ABOUT THE PARAMETERS AND THE POLICY CHANGES AND ALL OF THAT, BUT TO DATE, IS THERE ONE THAT MAKES MORE SENSE THAN ANOTHER? AND THEN FROM A LONG TERM TAX EXEMPTION AND THE, THE, THE TAX BENEFITS DOWN THE ROAD FOR THE DISTRICT, WHICH ONE HAS WOULD HAVE A BETTER IMPACT, I GUESS.
OH THANK YOU. THANK YOU FOR THE QUESTION, CHAIR. GRACEY. I MEAN, IT'S NOT LOADED. WE'RE ALL WORKING ON THE SAME PROBLEM HERE, RIGHT? LIKE WE'RE ALL TRYING TO MOVE IN THE RIGHT DIRECTION. I, I TELL ALL THE COUNCIL MEMBERS THIS.
WHAT I CAN DO IS BE THAT PIECE OF THE PUZZLE, RIGHT? TO REALLY DO REAL ECONOMIC GROWTH, REAL ECONOMIC DEVELOPMENT, YOU NEED JOBS.
YOU NEED A SAFE COMMUNITY. YOU NEED INFRASTRUCTURE.
YOU NEED AFFORDABLE HOUSING, RIGHT? AND YOU NEED A DIVERSITY OF ALL THESE THINGS.
THAT'S GOING TO DIFFER DEPENDING ON WHAT SITE YOU'RE LOOKING AT. RIGHT.
YOU KNOW, WE HAVE POND FUNDS THAT YOU GUYS HAVE ALL ALLOCATED OUT, YOU KNOW, WHERE ARE THESE PROJECTS GOING? WELL, MAYBE WE CAN PIGGYBACK ON SOME OF THOSE INFRASTRUCTURE THINGS TO DOUBLE OUR EFFORTS THERE TO, TO REALLY MULTIPLY THE EFFECT AND MAKE OUR IMPACT OF THESE TAX DOLLARS REACH AS WIDE AS POSSIBLE. NOW, WHICH DO YOU NEED? THE HFC OR PFC? I MEAN, IT'S IT'S HARD TO SAY BECAUSE YOU HAVE TO LOOK AT IT ON A SITE BY SITE BASIS, YOU KNOW? AND COMMUNITY BY COMMUNITY. SO IT'S A TOUGH QUESTION.
BUT YEAH, YOU KNOW, WE, WE VET THESE FOR THOSE EXACT QUESTIONS, YOU KNOW? IS THIS RIGHT FOR THIS, THIS PARTICULAR AREA? ALL RIGHT. WELL, AND I'LL, I'LL KIND OF END IT ON THE TAX EXEMPTION SIDE SO I CAN STAY FOCUSED.
BUT I WILL SAY FOR THE, WELL, I GUESS IT'S REALLY NOT TAX EXEMPTION, BUT FROM THE REVENUE PERSPECTIVE AND THE REVENUE THAT THAT COMES IN, I SAY THAT THE HOUSING, I'LL SAY IT HERE TOO, BUT THAT REVENUE SHOULD BE DIRECTED TOWARDS INFRASTRUCTURE, PARTICULARLY IN SOUTHERN DALLAS, SO THAT WE CAN KIND OF OFFSET THE LOW INCOME VERSUS NEW HOME BUILDS,
[01:00:02]
SINGLE FAMILY HOME BUILDS AS WELL AND MOTIVATE, INCENTIVIZE DEVELOPERS TO DO IT RIGHT NOW.WELL, I'LL STOP THERE BECAUSE I'LL GET OFF TIRED.
I THINK IT'S A GOOD POLICY DISCUSSION, THOUGH, AS WE ABSOLUTELY.
COUNCIL MEMBER. LET'S SEE. DEPUTY MAYOR PRO TEM.
THANK YOU. WELL IN THE TWO HOURS SINCE I LAST HEARD THIS PRESENTATION AND MADE MULTIPLE COMMENTS I'VE HAD AN EPIPHANY AND THAT IS THAT I USUALLY ASK YOU AND YOUR BOARDS FOR THE BALANCE, THE COUNTERBALANCE TO THE TAX EXEMPTION.
AND WE TALK ABOUT PUBLIC BENEFIT. AND JUST REAL QUICKLY, IT'S THINGS LIKE THE INFRASTRUCTURE, SIDEWALKS, ARTICLE TEN LANDSCAPING THAT MIGHT COME WITH A PROJECT THAT MIGHT IMPROVE THE APPEARANCE OF A NEIGHBORHOOD.
AN EMPLOYER'S AND AN EMPLOYEE'S SITUATION FOR EARNING A LIVING AND RUNNING A BUSINESS IN DALLAS.
I MEAN, THINGS THAT YOU JUST DON'T GET IN THE MARKETPLACE. OTHERWISE IF THEY'RE NOT, YOU KNOW, TYPICALLY TIED TO SOMETHING LIKE THIS. AND SO I KEEP ASKING YOU FOR THIS, BUT REALLY, IT PROBABLY RESIDES WITH THE CITY.
AND I'M LOOKING AT YOU CFO BECAUSE OR I DO THINK CITY STAFF NEEDS TO WORK ON THIS PROGRAM, EVEN THOUGH YOU ALL AND I'M SURE OTHER HFCS AND PFCS ACROSS THE COUNTRY ARE HAVING TO MAKE THEIR CASE IN A WAY.
BUT YOU REALLY SHOULDN'T HAVE TO. I MEAN, YOUR CHARGE IS EXACTLY WHAT YOU SAID PRESERVING AND PROVIDING GREATER ACCESS TO SAFE, SANITARY AND AFFORDABLE HOUSING TO THE RESIDENTS OF DALLAS.
SO MAKING YOUR CASE FOR WHY YOU DO THAT WHEN THAT'S YOUR CHARGE.
I THINK WE NEED TO PLAY A BIGGER ROLE IN THAT, BUT I DO THINK WE NEED TO KNOW IT, AND I THINK THE PUBLIC NEEDS TO UNDERSTAND IT BECAUSE WHEN THEY SEE THIS TAX EXEMPTION, IT'S, YOU KNOW IT GRABS THE HEADLINE AND BUT THE OFFSET AND HOW MUCH WE WOULD BE PAYING OR THEY WOULD BE PAYING AS TAXPAYERS WITH THEIR TAX DOLLARS THAT COULD BE GOING TO OTHER SERVICES ARE PROBABLY FAR GREATER THAN ANY TAX EXEMPTION THAT WE SEE. NOW, ONE THING THAT YOU. SO LET'S ALL FIGURE OUT LIKE WHO MIGHT PUT THAT TOGETHER AND MAKE THAT CASE SO THAT AS CASES COME FORWARD, WE'VE GOT SOME KIND OF FORMULA FOR WHAT THAT PUBLIC BENEFIT MIGHT BE.
AND IF I COULD JUST INTERJECT REAL QUICKLY THE CITY SPENDS FEDERAL FUNDS ON HOUSING AND WE SPEND VERY, VERY LITTLE, IF ANY, GENERAL FUND DOLLARS ON HOUSING.
WELL, I WOULD ASK THE PUBLIC TO LOOK NO FURTHER THAN IF THEY SEE SOMEONE ON THE STREET AND THEY'RE PLACING A31, ONE CALL OR WE ALSO JUST HAD A REPORT IN THE LAST MEETING ABOUT OUR HOMELESS ENCAMPMENT CLEANUPS AND THAT SORT OF THING.
AND SO YOU HAVE TO TIE ONE TO THE OTHER. AND SO THAT'S THAT'S A CRITICAL PIECE TOO.
BUT ONE THING YOU TOUCHED ON IN THE LAST MEETING WAS THE ROI.
AND JUST VERY BRIEFLY, IF YOU'LL JUST TALK TO US ABOUT THAT.
BUT I REFERENCED IN THE LAST MEETING A STUDY DONE BY NMHC.
AND THEY DO A BIG CONFERENCE EVERY YEAR. IT'S ONE OF THE BIGGEST ONES IN THE NATION.
AND SO SAN ANTONIO WAS A CASE STUDY WHERE THEY HAVE ALSO PFC AND HFC PROGRAMS, AND THEY FOUND THAT FOR EVERY DOLLAR OF FORGONE TAXES IN SAN ANTONIO, THEY THEY RETURNED TO THE TAX BASE ABOUT $2.24.
I MEAN, IT'S A VERY COMPELLING ARGUMENT THAT WHY WOULDN'T WE HAVE SOMETHING SIMILAR? YOU KNOW, OBVIOUSLY EVERY CITY IS DIFFERENT. BUT FROM WHAT I CAN SEE IS I THINK IT WOULD PROBABLY BE PRETTY CONSISTENT WITH THAT.
THANK YOU. THANK YOU. ANYONE ELSE? ALL RIGHT.
THANK YOU VERY MUCH. THANK YOU FOR PRESENTING TODAY.
NEXT WE'RE GOING TO MOVE ON TO ITEM B WHICH IS THE DALLAS CENTRAL APPRAISAL DISTRICT.
FISCAL YEAR 20 2627. BUDGET OVERVIEW. CHAIR WEST, WE HAVE REPRESENTATIVES FROM DCAD COMING DOWN, AND I'LL LET THEM INTRODUCE THEMSELVES AND WALK THROUGH THE PRESENTATION.
THANK YOU. WE TYPICALLY RECEIVE ANNUALLY A PRESENTATION FROM DCAD ON THEIR BUDGET.
[01:05:01]
WE DO NOT TAKE IT TO CITY COUNCIL FOR APPROVAL.THE WAY WE DO THINGS WITH DFW, WE DO HAVE THE OPPORTUNITY.
IF THERE'S OPPOSITION TO ANY APPRAISAL DISTRICT BUDGET, THEN WE CAN MAKE THAT KNOWN.
AND IF THERE'S A THRESHOLD THAT'S MET, OF ALL OF THE ENTITIES REPRESENTED, REPRESENTED IN DCAD, THEN THEY WOULD HAVE TO MAKE CHANGES TO THEIR BUDGET.
WE'VE ONLY TAKEN SUCH ACTION ONCE THAT I KNOW OF WITH DENTON CAD A FEW YEARS AGO.
MY NAME IS SHANE DOCHERTY. I'M THE EXECUTIVE DIRECTOR CHIEF APPRAISER OF THE DALLAS CENTRAL APPRAISAL DISTRICT AND MY DIRECTOR OF ADMINISTRATION HERE, KAREN SADLER, AND OUR DEPUTY CHIEF APPRAISER, CHERYL JORDAN.
SINCE THAT TIME, MYSELF, KAREN AND CHERYL HAVE VISITED WITH OVER 40 OF THE TAX.
63 TAXING JURISDICTIONS WITH THE DALLAS COUNTY TO PRESENT OUR BUDGET.
THE GOAL IS RIGHT NOW, ON APRIL 8TH, IS TO HAVE A PUBLIC HEARING AT 1 P.M.
OBVIOUSLY IT HAS TO BE APPROVED BY MAY 15TH OF EVERY YEAR.
SO BASICALLY WHAT YOU WANT TO SCROLL TO THE NEXT SCREEN.
OUR PROPOSED BUDGET THAT WE PRESENTED TO OUR BOARD ON FEBRUARY 11TH WAS A BUDGET AMOUNT OF 39.9 9.9 MILLION WAS A 3.68% INCREASE OVER LAST YEAR'S BUDGET OF 38.4 MILLION. NEXT SCREEN.
IF YOU WOULD GO TO THE NEXT. THAT'S GREAT. WE HAVE SIX OPERATING DIVISIONS WITHIN THE DISTRICT.
BASICALLY THAT'S THE OFFICE OF CHIEF APPRAISER, ADMINISTRATIVE SERVICES, LEGAL SERVICES INFORMATION TECHNOLOGY, APPRAISAL SERVICES AND COMMUNITY RACING SERVICES.
AND WITHIN EACH OF THESE OPERATING DIVISIONS.
NEXT SLIDE. WE HAVE A BREAKDOWN OF, OF OUR COSTS ASSOCIATED WITH OUR BUDGET EXPENDITURES RIGHT NOW.
SALARY ERASURES. IT'S UP 1.51%. WHAT WE DO EVERY YEAR, WE GO OUT AND SURVEY THE 63 TAXING JURISDICTIONS WITHIN DALLAS COUNTY AND LOOK TO SEE WHAT THEIR MERITS HAVE BEEN PROVIDED, THEIR EMPLOYEES, NOT STRUCTURE OR COST OF LIVING OVER THIS PAST YEAR.
IT AVERAGED FOR ALL 63 TAXING JURISDICTIONS, 3.39%, WE'RE RECOMMENDING A 3.25% MERIT, WHICH WAS THE THE THE DELTA CHANGE IN OUR SALARIES. I THINK CITY OF DALLAS WAS A 3.0% MERIT RAISE.
THE SURVEY HAS BEEN PROVIDED TO YOU ALL FOR EACH CITY IN THE SCHOOLS AND THE COUNTY ITSELF.
UNDER SUPPLIES AND MATERIALS, WE'RE UP TO 20, JUST UNDER 21%, 235,000.
AND THAT'S BASICALLY TWO THINGS. MAILING COSTS ARE UP.
AND ALSO WE HAD LEGISLATIVE MANDATES INCREASING THE NUMBER OF MAILINGS WITHIN OUR AGENCY.
AND THAT'S WHAT DROVE THAT INCREASE WITHIN OUR PARTICULAR BUDGET.
UNDER OPERATIONAL SERVICES, IT'S UP 45,000 OR 35%.
SO THAT WAS THE $45,000 INCREASE OVER LAST YEAR'S BUDGET MAINTENANCE OF STRUCTURE.
THE INCREASE OF 10.55%. THAT'S JUST PROJECTED COSTS IN ELECTRICITY GOING UP.
UNDER MAINTENANCE OF EQUIPMENT. THE $49,000 OR 8.73% INCREASES.
WE BOOSTED OUR CYBERSECURITY PLATFORM CONTINUE TO DO THAT.
THIS IS WHERE A BIG PIECE OF OUR BUDGET WENT UP 37.9% OR $475,000.
TEN YEARS AGO, WE HAD 115,000 PROTESTS FILED ANNUALLY.
AS OF LAST YEAR, WE'RE UP TO 230,000 PROTESTS.
WE PROJECT 300,000 PROTESTS BY THE YEAR 2030.
RIGHT NOW, OUR CURRENT FACILITY, WE'RE ONLY ABLE TO MANAGE 28 HEARING ROOMS. SO WE SOUGHT AN OFFICE EXPANSION FOR OUR APPRAISAL REVIEW PROCESS INTO ANOTHER BUILDING.
AND WE ENTERED INTO A LEASE OF $400,000 A YEAR.
SO THAT 475 IS TO ALLOW US TO GO TO 40 HEARINGS, PANEL ROOMS, UP TO 50 IF NEED BE.
AND THAT'S TO ENSURE THAT WE CAN GET THE TAXING JURISDICTIONS A TIMELY APPRAISAL.
[01:10:01]
BY JULY 25TH OF EVERY YEAR. AND THIS HAS CONTINUED TO BE A BIG CONCERN HERE IN DALLAS COUNTY.ACROSS REALLY THE STATE OF TEXAS AS PROTESTS INCREASE AND WE HAVE TO HAVE LESS THAN 5%.
NOT IN DISPUTE BY JULY 25TH EVERY YEAR TO GIVE YOU AND DELIVER YOU A TIMELY ROLE.
AND THE OTHER $75,000 WAS OUR GIS, WHICH IS OUR LAND MAPPING SYSTEM, ESRI CONTRACT.
WAS AN INCREASE IN THAT. OUR, OUR SUNDRY EXPENSES WERE UP 54,000 OR 2.41.
WE SUBSCRIBE TO SOME THIRD PARTY DATA FOR COMMERCIAL PROPERTIES.
THAT'S REALLY INCUMBENT THAT WE GET THAT INFORMATION TO VALUE A PROPERTY VALUE.
COMMERCIAL PROPERTY. UNFORTUNATELY TEXAS IS HAS A NON-DISCLOSURE SALE STATE.
SO WE NEED TO GET AS MUCH MARKET DATA AS POSSIBLE.
AND THOSE COSTS HAVE GONE UP. THEY KNOW WE NEED IT AND THEY RAISE THE SUBSCRIPTION COST.
PROFESSIONAL SERVICES AS PROTEST ACTIVITY HAVE GROWN, SO HAVE IN OUR LEGAL LITIGATION FILINGS.
DISTRICT COURT FILINGS AND ARBITRATIONS. OUR ARBITRATIONS ARE UP THREE TIMES SINCE LAST YEAR, PRIMARILY COMMERCIAL PROPERTY UNDER UNDER $5 MILLION.
GOING FORWARD, YOU'LL SEE OUR OUR LEGAL COSTS ARE 6.4% AT THE DISTRICT.
MOST THE LARGE APPRAISAL DISTRICTS HAVE A LEGAL COST OF 20% OF THEIR MAJOR BUDGET.
SO WE HAVE A VERY GOOD COST EFFECTIVE MODEL. BUT WE DO NEED TO CONTINUE.
AND WE DO THAT ANNUALLY. SO BASICALLY THIS IS A 3.68% INCREASE.
YOU WANT TO GO TO THE NEXT SLIDE FOR ME? YEAH, YEAH.
AND THIS IS THE SURVEY. THE NEXT SLIDE IS THE THAT'S THE CITY SURVEY.
THE NEXT SLIDE IS THE THE SCHOOL DISTRICT SURVEY AND THE COUNTYWIDE DISTRICT.
AGAIN, THAT WAS 3.39. WE'RE ASKING FOR A 3.25% MERIT, WHICH WAS THE SAME AS WHAT WE ASKED LAST YEAR.
NEXT SLIDE. AND LET'S GO AHEAD TO THE NEXT SLIDE.
THIS IS 3.68%. AGAIN, WITH THE BIG PIECE BEING THAT OFFICE EXPANSION AND THE APPRAISAL REVIEW BOARD AND OUR MERIT RAISE AND THE LITIGATION FILINGS, WHICH DRIVING THIS, WHICH ARE THINGS WE NEED TO DO.
BUT WE DO GIVE YOU A TEN YEAR HISTORY OF OUR BUDGET.
NEXT SLIDE. THAT'S THE FIRST. AND THEN GO AHEAD TO THE NEXT SLIDE.
OKAY. AND IT'S BROKEN DOWN BY DIVISION. RIGHT NOW, WE'RE PEOPLE DRIVEN.
WE'RE 245 EMPLOYEES. WE'RE NOT ASKING FOR ADDITIONAL STAFF EVERY LEGISLATIVE SESSION.
THEY'RE MANDATES THAT COME OUT. WE LOOK TO NOT ADD STAFF.
WE LOOK AT TECHNOLOGY, LOOK AT EXISTING WORKFLOWS, HOW WE CAN SHARE RESOURCES.
RIGHT NOW, SALARY, WAGES, AUTO EXPENSES AND INSURANCE AND BENEFITS MAKE UP 75% OF OUR BUDGET.
NEXT SLIDE IS SHOWS A BREAKDOWN BY DEPARTMENT.
MY OFFICE OF CHIEF APPRAISER REPRESENTS 7.1% OF THE BUDGET.
ADMINISTRATIVE SERVICES IS 16%. LEGAL SERVICES IS EIGHT, EXCUSE ME, 6.2%.
LOOK AT HERE. AND INFORMATION TECHNOLOGY IS 12%.
CUSTOMER SERVICES DIVISION IS 18%. GO TO THE NEXT SLIDE.
THE BREAKDOWN BY BY DOLLARS. EXCUSE ME. BY PERSONNEL IS 2.1%.
THE OFFICE OF CHIEF APPRAISER ADMINISTRATIVE SERVICES IS JUST OVER 10%.
LEGAL SERVICES IS 2.4% OF OUR TOTAL STAFF. INFORMATION TECHNOLOGY IS 5.7.
APPRAISALS COMING IN AT 50% 53% AND COMMUNITY RELATIONS SERVICES AT 29%.
I'M READING THAT, READING THAT. RIGHT. I WANT TO GO.
ONE THING I DO WANT TO BRING BACK TO YOU IN THE NEXT SLIDE, IF YOU WOULD GO BACK TO THIS NEXT SLIDE. UNDER OFFICE OF CHIEF APPRAISER, WHICH IS MY OFFICE. WE NOW HAVE TO HAVE A PUBLIC ELECTION FOR OUR BOARD OF DIRECTORS, THREE BOARD OF DIRECTORS THAT CAME IN THE 88 SESSION.
WE ESTIMATE THE ELECTION THAT'S GOING TO HAPPEN IN NOVEMBER OF 26 FOR THREE BOARD MEMBERS.
IT'S GOING TO COST US APPROXIMATELY $3 MILLION.
WE HAVE THAT IN OUR BUDGET AND WE'RE PREPARED TO PAY FOR THAT.
HOWEVER, WHAT'S NOT IN THIS BUDGET IF IT'S A RUNOFF.
VOTES FOR THE TOP THREE VOTE GETTERS COULD BECOME OUR BOARD MEMBERS, BUT RIGHT NOW WE HAVE A PLACE ONE, PLACE TWO AND PLACE THREE. AND SO IF ANY ONE PLACE HAS MORE THAN THREE MEMBERS AND SOMEONE DOESN'T WIN BY 50% AND ONE VOTE, WE HAVE TO HAVE A RUNOFF. THAT RUNOFF ELECTION COULD COST AN ADDITIONAL $3 MILLION.
[01:15:07]
WHAT WE HAVE. LAST TIME THE ELECTION IN MAY. WE HAD TWO UNOPPOSED AND THEN ONE PLACE, ONE HAD TWO MEMBERS RUN, SO WE DIDN'T HAVE THAT RUNOFF. I DO THINK WE'LL PROBABLY HAVE MORE THAN THREE MEMBERS RUNNING IN ANY ONE PLACE COMING UP.BUT THIS IS SOMETHING I BROUGHT TO OUR BOARDS ATTENTION ON FEBRUARY 11TH.
IF WE DO HAVE A RUNOFF, WE EITHER HAVE TO DO ONE OF TWO THINGS.
WE'LL HAVE TO AMEND THE BUDGET, ASK THE ENTITIES TO TO PAY FOR THAT ELECTION OR LIKE WE DID LAST TIME WHEN THE LEGISLATORS PASSED A LAW, WE HAD NO MONEY IN OUR BUDGET TO FUND THE ELECTION, WHICH COSTS AROUND 3 MILLION.
AND WE USED OUR WE DEPLETED OUR RESERVE FUNDS TO PAY FOR THE ELECTION.
THEN CAME BACK IN THAT NEXT BUDGET YEAR TO REFUND THAT THOSE RESERVE FUNDS.
SO IT'S SOMETHING WE'LL KNOW IN NOVEMBER IF WE DO HAVE A RUNOFF.
WE REALLY HOPE WE HAVE OUR THOSE AT THE CITY LEVEL.
COUNTY WILL ENCOURAGE OUR LEGISLATORS THE NEXT SESSION TO CHANGE THIS.
NEXT SLIDE. AND HOW OUR BUDGETS FUNDED. BASICALLY, IT'S BEEN A RESOLUTION THAT PASSED IN 1981.
STRICT FORMULA. IT'S BEEN IN PLACE FOR OVER SINCE 1981.
IF YOU GO TO THE NEXT SLIDE, WE GIVE YOU THE BREAKDOWN RIGHT NOW.
YOU'RE YOU'RE ANTICIPATED COST FOR BASED ON THIS FORMULA.
GO GO TO THE NEXT SLIDE. NEXT SLIDE IS BASICALLY BASED ON THE HOW YOU, YOUR TAX RATE WENT DOWN SLIGHTLY LAST YEAR, YOUR TAXABLE VALUE WAS UP 3.7%.
YOUR TAX RATE WENT DOWN 0.84%. BUT BASED ON THIS FORMULA, YOUR NEW FUNDED AMOUNT WILL GO FROM $5,972,000 TO 6 MILLION 242 06,247,000, FOR AN INCREASE OF $274,000 OR A 4.6% INCREASE.
STRICT FORMULA DONE BY A RESOLUTION WHEN WE CAME INTO CREATION IN 1981.
NEXT SLIDE. THAT'S THAT'S A BREAKDOWN BY, BY BY SCHOOLS.
NEXT SLIDE. AND, AND THEN WE PROVIDED YOU THE ACTUAL CALCULATIONS OF HOW IT'S DONE.
AGAIN, STRAIGHT FORMULA. GO TO THE NEXT SLIDE.
OKAY. AND THIS IS KIND OF A GOOD METRIC THAT WE LIKE TO LOOK AT.
THIS LOOKS AT OUR BUDGET, LAST YEAR'S BUDGET OF 38.4 MILLION.
IT WAS ALLOWED TO BRING IN $9.2 BILLION OF TAXABLE REVENUE TO THE CITY, SCHOOLS AND COUNTY.
TRAVIS IN AUSTIN, IT'S 0.53. LET ME THINK. KAREN TARRANT, WHICH IS OUR NEIGHBOR TO THE WEST, IS 0.55 BEAR, WHICH IS SAN ANTONIO IS 0.60. COLLIN, OUR NEIGHBOR TO THE NORTH IN PLANO.
.65. HARRIS IS REALLY OUR TRUE PEER. THEY'RE THE SECOND LARGEST COUNTY IN THE COUNTRY.
WE'RE THE EIGHTH LARGEST COUNTY. THEY'RE OPERATING ALMOST TWICE OF WHAT WE'RE OPERATING FROM A, FROM A COST LEVY PERSPECTIVE ON OUR BUDGET. I'LL SAY THIS, I DON'T BELIEVE THERE'S A LARGE ASSESSMENT OFFICE IN THE COUNTRY THAT'S OPERATING AS EFFICIENTLY AS WE ARE. WHEN YOU LOOK AT THIS PARTICULAR METRIC AND WE'RE REALLY.
YOU'RE OUR CLIENTS. YOU KNOW, WE WANT TO BE GOOD STEWARDS.
ONE OF THE THINGS THAT WE SAT DOWN, CHERYL, MYSELF AND KAREN DID, ONE OF OUR BIG CONCERNS WAS SCHOOL DISTRICTS, WHAT'S GOING ON IN THE URBAN AREAS WITH THE ENROLLMENT'S DOWN. AND WE, WE CAME WITH A REALLY FISCALLY CONSERVATIVE BUDGET, WE BELIEVE.
YOU KNOW, WE CAME OUT OF THIS SESSION. WE'RE NOT LOOKING TO ADD STAFF.
SO WE COULDN'T CONTINUE TO BE GOOD STEWARDS. WE HAVE BEEN VERY SUPPORTIVE BY THE TAXING JURISDICTIONS WE'VE NEVER HAD, EXCEPT WITH OUR FIRST YEAR IN EXCEPTIONS. WE'VE NEVER HAD ANYBODY REJECT OUR BUDGET, AND WE THINK WE'VE BEEN GOOD STEWARDS AND WE'RE TRYING TO BE GOOD, YOUR GOOD CLIENTS OF YOURS, AND WE APPRECIATE YOUR SUPPORT. WE'RE ALSO VERY FORTUNATE IN DALLAS COUNTY TO HAVE A REALLY GOOD BOARD OF DIRECTORS.
AND THEN WE HAVE JOHN AMES, ASSESSOR COLLECTOR, SITS ON OUR BOARD AND WE HAVE A BOARD THAT'S VERY SUPPORTIVE, NOT ONLY OUR AGENCY, BUT OF THE TAXING JURISDICTION AND THE PROPERTY OWNERS IN DALLAS COUNTY.
SO WE'RE REALLY FORTUNATE ON THAT. SO WE JUST WANT TO LET YOU ALL KNOW THAT.
AND THAT'S THAT'S KIND OF THAT'S THE BUDGET OUT THERE.
WE AT THIS POINT, WE'D ASK, DO YOU HAVE ANY QUESTIONS OR ANY KIND OF ANY CONCERNS ABOUT THE BUDGET? YES. THANK YOU FOR THAT PRESENTATION. IT'S VERY THOROUGH AND I THINK VERY TRANSPARENT AND VERY HELPFUL FOR YOU TO WALK US THROUGH LOOKING AT THIS FROM,
[01:20:07]
YOU KNOW, DIFFERENT PERSPECTIVES. SO I WILL OPEN IT UP FOR QUESTIONS.DEPUTY MAYOR PRO TEM. SURE. THANK YOU SO MUCH.
I'M GOING TO GO BACK TO PAGE SEVEN, WHICH IS WHERE YOU'VE GOT THE PERCENT CHANGE ON SEVERAL OF YOUR ITEMS. THANK YOU FOR DOING THAT. RIGHT. SO I UNDERSTAND ABOUT CONTRACTUAL SERVICES AND THE NUMBER OF CHALLENGES AND THAT SORT OF THING.
I DIDN'T HEAR AS MUCH. I THINK YOU WERE KIND OF MOVING THROUGH QUICKLY, WHICH NORMALLY WE REALLY RESPECT AROUND HERE, BUT I MISSED ON SUPPLIES AND MATERIALS AND OPERATIONAL SERVICES.
THOSE ARE SOME PRETTY BIG JUMPS. CAN YOU GO BACK TO THOSE TWO AND WHY? THEY ARE AT 20% AND ALMOST 35%? YEAH, MAILING COSTS ARE UP SIGNIFICANTLY.
OH. SO MAILING. YEAH. WE HAVE WE DO LOTS OF MAILINGS, APPRAISAL NOTICE FOR BUSINESS RENDITIONS, HEARING NOTICES ARB RULINGS. THERE ARE ALSO SOME MANDATES THAT CAME FROM THIS PAST SESSION THAT NOW REQUIRE US TO SEND THINGS OUT.
CERTIFIED MAIL THAT WASN'T A REQUIREMENT IN THE PAST.
SO WHAT DROVE THAT WAS MAILING PRIMARILY MAILING COSTS THAT WE ALSO HAVE GIS SOFTWARE.
THAT WAS AN INCREASE IN COST OF THAT TOO. BUT WHAT WAS DRIVING IT IS THE COST OF POSTAGE.
SO IN WHICH LINE ITEM DOES THE POSTAGE AND ALL OF THAT GO UNDER IT? SUPPLIES AND MATERIALS. OKAY. AND GIS I THOUGHT YOU SAID WAS PART OF CONTRACTUAL SERVICES.
THERE'S TWO. WE HAVE GIS SOFTWARE COST AND WE HAVE A CONTRACT.
THE 475,000 400,000 OF. THAT IS OUR LEASE OFFICE SPACE FOR THE A OR B.
OKAY. AND THEN ON OPERATIONAL SERVICES AT A 35% INCREASE.
I'M SORRY. WHAT WAS THAT? THAT'S OUR PHONE SYSTEM.
OUR A C D AUTOMATED CALL DISTRIBUTION SYSTEM.
WE HAVE TO EXPAND IT DUE TO THE NUMBER. RIGHT NOW PEOPLE ARE DEFAULTING TO PHONE HEARINGS, NOT ACTUAL LIVE HEARINGS IN DALLAS COUNTY. AND WE NEED TO HAVE AN EXPANDED AUTOMATED CALL DISTRIBUTION CENTER THAT WILL ALSO BE CONNECTED TO OUR OTHER SITE WHERE THE A OR B HEARINGS WILL BE GOING FOR.
OKAY. AND THEN WHEN YOU, WE GOT TO CONTRACTUAL SERVICES, I THINK IT WAS UNDER THIS SOMEWHERE.
YOU TALKED ABOUT INCREASING THE NUMBER OF PANEL ROOMS, BUT MY QUESTION IS WHAT PERIOD OF TIME ARE THESE REALLY IN USE? IT SEEMS LIKE YOU'VE GOT A VERY INTENSIVE TIME WHERE ALL THESE PANELS ARE MEETING AND THEN ARE THEY JUST DO YOU NEED THEM THE REST OF THE YEAR? IS THERE A BETTER OPTION FOR, YOU KNOW, SOMETHING THAT MIGHT JUST BE FOR A CERTAIN PERIOD OF TIME VERSUS.
THEN EVERY MONTH WE HAVE SUPPLEMENTAL HEARINGS, CLERICAL HEARING PROCESS, DUE PROCESS HEARINGS.
AND SO THOSE WE WILL HAVE HEARINGS NOT AT THE INTENSITY THAT WE WILL HAVE BETWEEN APRIL 15TH.
RIGHT NOW WE HAVE 28 PANELS. WE HAVE NOWHERE TO EXPAND IN OUR OFFICE.
AND SO WITH US, WE FELT IT WAS A GOOD COST EFFECTIVE MEASURE TO SEEK OUT THIS, THIS ANOTHER PROPERTY RIGHT NEXT TO OUR DOWN THE STREET FROM US AT THE CORNER OF STEMMONS AND MOCKINGBIRD TO, TO BASICALLY ALLOW US TO CONDUCT OUR HEARINGS IN, IN THOSE IN THOSE BUILDINGS FOR SIX MONTHS, A YEAR. AND THEN EVERY MONTH WE HAVE WE HAVE OTHER HEARINGS NOT AT THE LEVEL AND INTENSITY AS WE DO DURING THE APPEAL PROCESS, BUT IT SOUNDS LIKE IT'S PULSED IN THAT SIX MONTH TIME PERIOD.
SO MY QUESTION IS, SO YOU'RE TELLING ME YOU INVESTIGATED JUST DOING A TEMPORARY AND THEN OR DOING, YOU KNOW, JUST A LEASE, I GUESS FOR THE WHOLE WE DID, YOU KNOW, WE USED TO DO REMOTE HEARINGS AND, AND, AND TO MOVE EQUIPMENT AND SET UP THE IT AND THE PHONE SYSTEMS AND TO DO ALL THAT.
IT'S SOMETHING THAT'S VERY IT'S NOT SAYING PROBLEMATIC.
WELL, AND I'M THANK YOU FOR FOR DRILLING INTO THAT BECAUSE IT IS CRITICAL.
I'VE PARTICIPATED IN THE PROCESS. IT IS HEAVY ON THE TECHNOLOGY OF THE PHONE CALL AND HAVING QUALITY HEARING AND BEING ABLE TO HAVE THOSE FOLKS IN THE SAME ROOM TOGETHER AND MOVE IT ALONG. SO. ALL RIGHT. THANK YOU, CHAIR.
COUNCIL MEMBER. RESENDEZ. ANY QUESTIONS? OKAY, I'LL TURN THIS WAY.
ANY QUESTIONS? CHAIR. JOHNSON. OKAY. AND THEN IF YOU IF YOU DON'T MIND, I'LL JUST FOLLOW UP WITH REAPPRAISAL TRENDS. ARE YOU ALL DO YOU WANT TO HEAR ANY OF THAT MR. IRELAND REAPPRAISAL TRENDS, WHAT WE'RE DOING IN 2026 WITH VALUES.
[01:25:01]
1990S AND EARLY 2000. WE'RE HAVING SLOW MARKET VALUE GROWTH, LOW SINGLE DIGITS, PRICE POINTS HAVEN'T DROPPED, HAVEN'T REALLY GONE UP OR DOWN IN THE RESIDENTIAL FILE. THEY'RE STAYING RELATIVELY FLAT.THEY'RE UP IN SOME MARKETS DOWN IN SLIGHT MARKETS. BUT OVERALL WE'RE GOING TO SEE LOW SINGLE DIGIT MARKET VALUE GROWTH IN THE RESIDENTIAL FILE MID SINGLE DIGIT TAXABLE VALUE GROWTH. THAT'S DUE TO THE UNPRECEDENTED APPRECIATION THAT WE SAW IN 22, 23 AND 24, WE'RE AT A LARGE PERCENTAGE OF HOMESTEADS THAT HAVE EXEMPTIONS ON IT AND NOW HAVE A CAP VALUE. SO WE'RE SEEING THOSE CAP VALUES CONTINUE TO RECALCULATE AT 10% UNTIL THEY MEET THE MARKET VALUE OF THEIR PROPERTIES.
RIGHT NOW WE STILL HAVE A RELATIVELY STRONG COMMERCIAL GROWTH HERE.
RETAIL STRONG DEPARTMENTS ARE STRONG INDUSTRIAL WAREHOUSING.
WE ARE SEEING DEGRADATION IN THE OFFICE MARKET, ESPECIALLY LARGE CBD AREAS.
AND THAT WILL BE REFLECTED IN THIS ROLE AND ALSO IN LITIGATION HAS BEEN FILED IN 25.
BUT OVERALL YOU'LL SEE GROWTH IN THE COMMERCIAL FILE, NOT LIKE WE SAW IN 22, 23 AND 24.
BUT THERE WILL BE A LOT OF BUSINESSES THAT ARE LARGER THAT WILL NO LONGER BE TAXABLE. SO ON YOUR ROLE, YOUR MARKET VALUE WON'T AFFECT THE MARKET VALUE, BUT THE TAXABLE WILL TREND DOWN SLIGHTLY.
BUT OVERALL WE'RE SEEING GROWTH LIKE I LET EVERYBODY KNOW.
EVERY REAL ESTATE INVESTMENT TRUST, EVERY INSTITUTIONAL INVESTOR, EVERY FOREIGN GOVERNMENT WANTS A PIECE OF DALLAS COUNTY THAT'S GOING TO CONTINUE. WE'RE GOING TO CONTINUE TO SEE GROWTH NOW AND INTO PERPETUITY AS LONG AS WE HAVE JOB GROWTH, POPULATION GROWTH.
IT'S JUST NOT ON HIGH. APPRECIATE THAT. WE SAW 2223, 24 AND IT'S A LOT DRIVEN BY THE THE CURRENT MORTGAGE RATES AND COMMERCIAL BANKING RATES. OKAY. THAT'S HELPFUL TO KNOW. VERY HELPFUL TO KNOW AS WE ARE LOOKING AT NUMBERS ALL THE TIME THESE DAYS.
EXACTLY. ANY NO OTHER FOLLOW UPS? OH, MR. ROTH, COUNCIL MEMBER ROTH.
THANK YOU. JUST TO YOUR POINT THAT YOU JUST MADE.
IF I UNDERSTAND YOU, IT SEEMS LIKE GENERAL PROPERTY VALUES ARE PROBABLY GOING TO BE RELATIVELY FLAT, CORRECT. OR A LITTLE BIT DOWN. AND I THINK THAT THAT'S SOMETHING THAT WE NEED TO REALLY BE PAYING ATTENTION TO, ESPECIALLY IN VIEW OF OUR BUDGET DISCUSSIONS THAT'S GOING TO BE COMING UP BECAUSE 70% OF OUR INCOME IS COMING OUT OF PROPERTY TAX.
SO THAT'S, THAT'S ACTUALLY A VERY IMPORTANT INFORMATION THAT YOU'VE GIVEN US.
AND I REALLY APPRECIATE YOUR, YOUR DILIGENCE IN THAT.
THANK YOU. OKAY. SO WE DO HAVE THE 3.5% CAP ON OUR INCREASE, RIGHT? IT'LL BE INTERESTING TO SEE HOW THAT PLAYS OUT THIS YEAR.
ANY COMMENTS? I'M JUST KIND OF THROWING THAT OUT THERE.
IF OUR IF OUR PROPERTY TAXES ARE NOT GOING TO INCREASE, MAYBE AT THE RATE THAT THEY HAVE BEEN.
BECAUSE THE CAP YOU'RE REFERRING TO IS A CAP ON OUR REVENUE FROM REAPPRAISAL.
SO WE'RE ALWAYS HOPEFUL THAT THAT NEW CONSTRUCTION NUMBER IS, IS, IS GOOD.
SO WE'LL BE GETTING ADDITIONAL INFORMATION FROM DCAD AND THE OTHER THREE DISTRICTS AND SHARING WITH YOU AS WE'RE ABLE AND CONTRACTIONS TRENDING LIKE IT HAS BEEN IN PAST YEARS TOO. AS YOU ALL KNOW, IN MAY 1ST, WE'LL GIVE YOU OUR FIRST BEST PRELIMINARY.
AND I THINK, YOU KNOW, A LOT OF THE BUDGET, THEY TREND THAT WHAT WE DON'T LOSE A LOT OF VALUE IN THE RESIDENTIAL FROM THE PRELIMINARY TILL THE TIME WE CERTIFY, WE'LL LOSE A HALF OF WHAT WE WENT OUT ON OUR COMMERCIAL.
WE MAY GO UP 18%. WE ONLY NEED NET UP 9% BUSINESS, PERSONAL PROPERTY.
WHEN YOU SEE THAT PRELIMINARY ROLE IN MAY, YOU'LL HAVE A BIG SPIKE IN THE TAXABLE VALUE.
THAT'S DUE TO THE FREEPORT EXEMPTION INVENTORY HELD IN WAREHOUSES THAT TURN WITH 175 DAYS CAN BE EXEMPTED, AND THEY HAVE TO FEEL ANNUALLY THAT FREEPORT EXEMPTION.
AND SO THAT YOU'LL SEE THAT INITIAL SPIKE IN THE TAXABLE VALUE.
BUT THAT WILL COME DOWN OVER TIME. BUT, YOU KNOW, WE'D RATHER UNDER PREDICT AND OVER PRODUCE I YOU KNOW, LOW SINGLE DIGIT MARKET, MID SINGLE DIGIT TAXABLE IS WHAT I WOULD PROJECT.
BUT YOU'LL HAVE A BETTER IDEA ON JULY 25TH. ALL RIGHT.
THANK YOU EVERYONE. THANK YOU VERY MUCH FOR THE PRESENTATION. THANKS. APPRECIATE IT. PAUSING FOR JUST A MINUTE TO SEE IF OUR CHAIR RETURNS.
SO HANG ON. JUST ONE. BUT WE ARE. I BELIEVE THE NEXT PRESENTATION IS PRESENTATION.
SEE A REVIEW OF KAY BAILEY HUTCHISON CONVENTION CENTER FINANCING PLAN.
WITH DIRECTOR FLEMING. SO WE HAVE A WHOLE TEAM COMING FORWARD, I BELIEVE, ON THIS UPDATE.
[01:30:05]
AND MISS FLEMING WILL LEAD THE CONVERSATION, BUT WE ALSO HAVE OTHERS.THAT'LL BE AVAILABLE FOR ANSWERS AND QUESTIONS.
ROSE. I'LL LET YOU INTRODUCE HER. ROSA, MAYBE IF YOU COULD INTRODUCE YOUR TEAM.
GOOD AFTERNOON. I'M ROSA FLEMING, DIRECTOR FOR CONVENTION AND EVENT SERVICES, AND I'M JOINED TODAY BY JENNY KURZMAN, WHO'S THE DEPUTY ASSISTANT DIRECTOR OF TREASURY IN THE CITY CONTROLLER'S OFFICE.
CARLOS AGUILAR, WHO'S WITH INSPIRED DALLAS. NINA ROSA, WHO'S WITH ESTRADA HINOJOSA.
AND I ALSO HAVE WITH US CRAIG DAVIS, WHO'S WITH VISIT DALLAS.
HE'LL ANSWER A FEW SLIDES. AND THEN I HAVE OUR RESIDENT EXPERTS FROM PERKINS AND WILL AND TRINITY ALLIANCE, SHOULD YOU HAVE QUESTIONS FOR THEM. SO IF WE COULD GO TO SLIDE FOUR.
SO ON THIS SLIDE ON SLIDE FOUR, WE HAVE JUST WANTED TO REMIND YOU ALL THAT WE LAST BRIEFED THE FULL COUNCIL IN JANUARY OF THIS YEAR. AND WE TALKED ABOUT OUR AMENDED COST ESTIMATES FOR COMPONENT ONE BASED ON THE ADVANCED DESIGN THAT WE BROUGHT TO YOU AT THE TIME.
AT THE TIME, WE WERE UNDERGOING PRE ENABLING PRE-CONSTRUCTION AND SOME CONTINUING OPERATIONS WORK THAT WERE UNDER GUARANTEED MAXIMUM PRICE ONE OR GMP ONE. MOST OF THAT HAS BEEN COMPLETED. AND AS YOU CAN SEE, DEMOLITION IS UNDERWAY.
WE ALSO TALKED ABOUT TIMELINES, WORKFORCE ENGAGEMENT AND REQUESTED FUTURE ACTIONS.
SO THAT IS A REQUEST AND AN UPDATE ON REVENUE BONDING TIMELINES, ON THE EXTENSION REQUEST FOR THE BRIDGE LOAN AND UPDATES ON SOURCES AND USES. YOU'LL SEE IN THE PRESENTATION AS WE MOVE FORWARD.
I'M GOING TO GO BACK A LITTLE WAYS. I KNOW THAT THERE ARE SOME COUNCIL MEMBERS WHO WON.
WERE EITHER NOT ON THE COUNCIL AT THE TIME OR SOME OF THESE THINGS WE DISCUSSED SO FAR IN THE IN THE PAST THAT IT NEEDS TO BE REMINDED IN ORDER TO UNDERSTAND WHERE WE'RE GOING AND MOVING WITH THE FUNDING.
SO IF WE COULD GO TO PAGE FIVE. SO ON THIS SLIDE, WE WANTED TO BRING YOU THE ORIGINAL STUDY AREA.
SO THAT EXTENDS BASICALLY FROM UNION STATION DOWN TO FARMER'S MARKET.
THAT'S HOW WE GET TO THOSE. THOSE ARE INCLUDING HOW WE INTERACT AND HOW WE USE OUR TRANSPORTATION NETWORKS AND SUCH TO DEVELOP AN AREA MASTER PLAN SO THAT WE HAVE SOME CONTINUITY IN HOW WE DEVELOP DOWNTOWN.
THE BLUE WAS THE STUDY AREA. THERE WAS, AS WE WENT THROUGH THE MASTER PLANNING PROCESS, A LOT OF QUESTIONS ABOUT HOW THIS WOULD OPEN UP DEVELOPMENT INTO THE CEDARS SOUTH AND SOUTHERN DALLAS. AND SO WE EXPANDED THE STUDY AREA TO INCLUDE THAT.
OVER TIME, THAT STUDY AREA STARTED TO INCLUDE PORTIONS OF DOWNTOWN AS WELL.
AS WE STARTED TO LOOK NORTH, SOUTH, EAST AND WEST.
NEXT SLIDE. I'M GOING TO TURN THIS OVER TO CARLOS AGUILAR FOR THE NEXT TWO SLIDES TO TALK ABOUT HOW THE ORIENTATION OF THE CONVENTION CENTER CHANGED AND WHY. THANK YOU ROSA. AND AS SHE SAID, IT'S A LITTLE GOING BACK IN TIME, BUT AGAIN, GIVES CONTEXT AS TO WHAT IT TAKES TO WORK IN A CONGESTED AREA AND HOW TO MATCH THE NEEDS AND, YOU KNOW, PURPOSES OF EVERYBODY INTO THE PLAN.
THIS IS PAGE SIX AND THAT SHOWS YOU THE ORIGINAL ORIENTATION OF THE BUILDING AS INITIALLY ENVISAGED.
SOON AFTER WE CAME ON BOARD, MAYBE 10 OR 15 DAYS AFTER WE GOT A REQUIREMENT BY TXDOT FOR THE WORKS THAT THEY HAD TO CARRY OUT FOR UNION PACIFIC WITH RESPECT TO BOTH TEMPORARY FACILITIES, WHICH WAS A SHOOFLY OVER I-30 TO KEEP THE FREIGHT GOING WHILE THEY WERE BUILDING A NEW BRIDGE FOR THEM IN IN THAT SAME SECTION. SO THESE YELLOW ZONES THAT YOU SEE THERE, PLUS THAT GREEN IS BOTH LAY DOWN YARD AND AREA THAT THEY NEEDED TO BE ABLE
[01:35:04]
TO COMPLETE THAT SCOPE. GIVEN THAT WE HAD TO PIVOT AND THAT'S THE NEXT PAGE TO REORIENT THE BUILDING AND AVOID INTRUSION INTO THE AREAS THAT THEY HAD SLATED FOR ACTIVITIES AND CONSTRUCTION FOR THREE, FOUR YEARS. SO THIS ALLOWED US TO AVOID CONFLICT WITH THE WORKS THAT TEX-DOT WAS IMPLEMENTING FOR UP. SO THAT'S A VERY IMPORTANT CHANGE. THE NEXT IMPORTANT ASPECT OF THIS IS THAT WE DECIDED TO KEEP THE FOOTPRINT OF THE BUILDING OVER THE EXISTING COVER OVER UP AND ART AND THEREFORE AFFECT THEM AS LITTLE AS POSSIBLE SO THAT THE PERMIT PROCESS AND THE DESIGN COORDINATION AND ALL THESE THINGS THAT WE'RE DOING CURRENTLY WOULD POSE AS LITTLE DELAY AS POSSIBLE.SO AGAIN, HAVE A LITTLE MORE AMMUNITION, A LITTLE MORE CONTROL OVER.
THE RELATIONSHIP WITH THIRD PARTIES. THANK YOU CARLOS.
SO THE NEXT SLIDE TALKS A LITTLE BIT ABOUT WHY WE'RE DOING THE PROJECT.
AND THERE AGAIN, THERE'S A COUPLE OF OF MEMBERS WHO WERE NOT HERE AT THE TIME.
SO I THINK IT'S IMPORTANT TO LOOK AT THE AT THE HISTORY OF IT.
AND SO AT THE TIME THAT I WAS ASKED IN 2018 TO 1 FIRST RETOOL, VISIT DALLAS, WHICH WE DID SUCCESSFULLY AND BROUGHT CRAIG ON AND CHANGED HOW WE REALLY SELL THE CITY.
AND SO WE DID THAT IN AN IN QUICK SUCCESSION.
AND IN FEBRUARY OF, OF 2019, WE HIRED THEN SPECTRA, NOW OAKVIEW GROUP, WHO DID A STUDY FOR US ON THE MAINTENANCE OF THE BUILDING. THEIR FIRST CHARGE WAS TO DO A FACILITY ASSESSMENT.
THAT ASSESSMENT CAME UP AT THAT MIDDLE NUMBER.
WE COULD HAVE INVESTED THAT $600 MILLION AND IT WOULDN'T HAVE MOVED US FORWARD.
WE WERE LOSING ABOUT 648 LOST EVENTS OVER 15 YEARS.
BUT THOSE EVENTS NEEDED THINGS WE DID NOT HAVE, LIKE A DIGITAL MEETING ROOMS THAT MEET THE SPECS FOR BUSINESSES THAT DO PHARMACEUTICAL, MEDICAL, ETC. SO EVEN IF WE HAD INVESTED 600 MILLION, WE WOULD NOT HAVE RECAPTURED VERY MUCH OF THAT 948 LOST BUSINESS OPPORTUNITIES THAT WE HAD OVER THAT COURSE OF 15 YEARS.
AND SO THAT THOSE WERE SORT OF OUR KIND OF PLATFORMS FOR MOVING FORWARD INTO MASTER PLANNING.
NEXT SLIDE. SO BEFORE WE EVEN STARTED THE PLANNING, AND THIS IS KIND OF A SHORT LIST, WE, WE TOLD CITY COUNCIL THAT WE AND WERE INSTRUCTED BY CITY COUNCIL TO GO OUT AND MAKE SURE THAT WE WERE ENGAGING CORRECTLY.
AND SO WE, WE MADE A LIST OF ALL THE ENGAGEMENT ENTITIES THAT WE NEEDED TO IMMEDIATELY TALK TO.
AND SO YOU'LL SEE THEM BROKEN OUT HERE. I WON'T READ THEM TO YOU, BUT WE NEEDED TO ONE, LOOK AT WHAT THE CURRENT AND FUTURE PROJECTS WERE GOING TO BE UNDERWAY IN THE AREA. SO THAT'S WHERE YOU SEE YOUR DARTS AND YOUR COGS AND YOUR OTHER ENTITIES.
WE NEEDED TO KNOW THAT WE WERE GOING TO WORK TOWARDS CONNECTIVITY.
SO THAT'S WHERE YOU SEE THE RAILWAYS REPRESENTED HERE.
AND THAT'S WHERE YOU SEE THAT TOURISM AND HOSPITALITY TRANCHE.
AND THEN THE DOWNTOWN ORGANIZATIONS, WE NEEDED TO KNOW WHAT DEVELOPERS HAD PLANNED AROUND US, THAT THEY COULD STEP BACK JUST A BIT. SUPPORT THE CITY'S PROJECT AND MAKE SURE THAT WE HAD CONTINUITY IN THE DOWNTOWN AREA.
AND SO THEN THAT THEN REQUIRED THE DOWNTOWN ORGANIZATION SUPPORT.
SO THE DOWNTOWN DALLAS INKS, THE CHAMBERS, ETC.
WERE ALL INCLUDED IN THAT. AND THEN, OF COURSE, WE HAD TO GO BACK TO SOME OF THE ENTITIES THAT HAD ANYTHING TO DO WITH THE CONSTRUCTION OF THE BUILDING IN FIVE PHASES. NEXT SLIDE. AND I'LL TURN THE NEXT SLIDE OVER TO CARLOS TO TALK ABOUT KIND OF THE TIMELINE ONE, AND THEN THE ENTITIES THAT WE HAVE IN COMPONENT ONE.
[01:40:01]
UP. CAME ON AS THE PROGRAM MANAGER FOR THE CITY.FIRST, IT WAS THE ARCHITECTS THAT WERE SELECTED SEPTEMBER OF 24.
SO THAT WAS THE FULL RFP PROCESS THAT WAS COMPLETED.
RFQ RFP PROCESS THAT WE COMPLETED. AND SAME HAPPENED FOR THE SELECTION OF THE CONSTRUCTION MANAGER A COUPLE OF MONTHS LATER AS A RESULT OF THE PROCUREMENT FOR THE ARCHITECT, BOTH PERKINS AND WILL AS THE LEAD AND POPULOUS WERE SELECTED COMPETING WITH THE BEST NAMES IN THE MARKET. SO IT'S A GREAT RESULT THAT WE GOT AND SORT OF THE SAME THING IN THE CASE OF TRINITY ALLIANCE WITH, YOU KNOW, TWO. WHO VERY WELL KNOWN NAMES AND LEADERS IN THEIR INDUSTRY.
BEING THE CONSTRUCTION MANAGER THAT WE'RE ABLE TO SELECT.
AND THAT WAS NOVEMBER OF 24. FINALLY THE PROGRAM, WHICH IS A PRIORITY FOR THE CITY WAS IMPLEMENTED.
AND, WELL, THESE PARTIES HAVE BEEN INCORPORATED INTO THAT SCHEME, INCLUDING ALL OF THEIR SUBS.
AND THAT WAS IN AUGUST OF 25. WITH THAT, WE GO TO THE NEXT SLIDE.
SLIDE 11. AND THIS GIVES YOU FURTHER EVOLUTION OF THE DESIGN OF THE BUILDING.
THE FIRST GOAL WAS TO CONFIRM THAT ORIENTATION THAT WE HAD.
WE HAD 15 CONCEPTS THAT CAME ALONG AS PART OF THE DESIGN EFFORT.
AND FINALLY, AFTER ANALYZING THEM, ALL THIS REORIENTATION THAT WE TALKED ABOUT, STAYING TO THE EAST OF THE RAIL, RIGHT OF WAY AND WEST WEST OF LAMAR WAS THE LOCATION THAT BEST PLAYED FOR THE LOCATION OF THE BUILDING. FIRST WE TRIED TO BUILD OVER STRUCTURES THAT MEANT BUILDING OVER, UP OVER DART, KEEPING COCOONS IN PLACE, BUT TO PROTECT THOSE ASSETS, BUT BUILDING ABOVE WITH LARGER TRANSFER BEAMS AND THE WHOLE SERIES OF ITEMS THAT WILL TUM, THAT TUM WILL TOUCH ON.
AND ALSO THE JEFFERSON VIADUCT. SO WE TRIED TO KEEP THAT IN PLACE.
BUT THAT MADE THE PROJECT SIGNIFICANTLY MORE EXPENSIVE.
NOT ONLY THAT, WE HAD FEEDBACK FROM THE INDUSTRY EXPERTS.
AND THIS IS WHAT YOU SEE IN THE JANUARY 26TH UPDATE THAT WE GAVE YOU.
THAT INCLUDED THESE CHANGES. AND WITH THAT, I'LL TURN IT OVER TO TOM SO THAT HE CAN GIVE US A LIST.
OKAY. SO IF YOU COULD KEEP IT, I WANT TO MAKE SURE THAT YOU UNDERSTAND THE RELEVANCE.
I THINK ONE OF THE QUESTIONS THAT WE WERE ASKED WAS HOW WE GOT TO THE CURRENT COST.
AND THEN THE. SO AT ANY POINT, IF YOU WANT US TO MOVE ON IN TERMS OF TIME, WE CAN.
I THINK WE JUST FOCUS ON THE FINANCING PIECE.
I THINK WE'VE GOT THE HISTORY. AND JUST IN THE INTEREST OF TIME, LIKE THIS IS THE.
IT'S NOTICED AS A FINANCIAL UPDATE, BUT IF COUNCIL MEMBERS HAVE QUESTIONS, THAT WOULD BE THE TIME THEY CAN GO INTO IT. OKAY. THANK YOU. ABSOLUTELY. SO ONE OF THE MAJOR QUESTIONS WAS THE SOURCES AND USES OF FUNDING.
AND SO I'M GOING TO TURN THAT OVER TO NOEY. AND THEN CARLOS CAN FILL IN WHERE NECESSARY.
BUT IF YOU COULD WALK THROUGH THE SLIDE, PLEASE. SURE. SO IF YOU GO TO, YOU GO TO PAGE 13.
ON THE LEFT SIDE, YOU'LL SEE A QUADRANT THAT LISTS THE NUMBER OF HOW CAN I SAY THIS FACES OF FUNDING OR DIFFERENT TYPES OF FUNDING SOURCES WITHIN THE FUNDING SOURCE ITSELF.
THE MOST SIGNIFICANT ONE, WHICH IS ABOUT 65% OF THE ENTIRE 3,000,000,080 THAT IS BEING FUNDED FOR, IS THROUGH THE ISSUANCE OF REVENUE BONDS. THOSE REVENUE BONDS, AS YOU CAN SEE ON THE VERY TOP, ARE BASICALLY USING REVENUES OF HOTEL OCCUPANCY TAX.
SO WHAT'S IMPORTANT TO BE ABLE TO GET THERE IS WE'RE CUTTING ON A STUDY, A FEASIBILITY STUDY CALLED A STUDY PREPARED BY HBS SO THAT THE RATING AGENCIES AT THE RIGHT TIME CAN GIVE US AN IDEA OF WHAT THAT RATING IS GOING TO BE.
[01:45:05]
SO WE'RE SOMEWHAT COMFORTABLE WITH THE FACT THAT WE CAN GENERATE ABOUT A BILLION 913 AS OF TODAY.SO IF THINGS GET A LITTLE BIT MORE UNEASY BETWEEN NOW AND THE TIME THAT WE BORROW THE MONEY, WE HAVE A CUSHION OF ABOUT A HALF A PERCENT. THESE ARE UNUSUAL DIFFICULT TIMES.
SO THE SWINGS CAN BE PRETTY, PRETTY, PRETTY WIDE FROM ONE DAY TO THE NEXT.
BUT, BUT WE'RE CONFIDENT THAT BY THE TIME WE GET THERE, WE SHOULD BE SOMEWHERE IN THERE.
SO THAT'S A BILLION 913. WE'RE HOPING TO GET A COMMITMENT FROM THE COUNCIL OF GOVERNMENTS, THE NORTH TEXAS COUNCIL OF COUNCIL GOVERNMENT OF ABOUT $300 MILLION. WHEN YOU LOOK AT THE PROJECT COST ABOUT 3,000,000,080 ON THE RIGHT SIDE, A GOOD $600 MILLION FOR TRANSPORTATION RELATED PROJECTS.
SO WE FEEL COMPELLED TO GO OUT AND AND SEEK THEIR ASSISTANCE.
MISS FLEMING AND, AND OUR TEAM HAVE BEEN DISCUSSING THIS THIS APPROACH WITH THEM.
WE DON'T KNOW IN WHAT FORM THE $300 MILLION WILL COME IN.
SO WE'RE THINKING THAT IF THEY MAKE A COMMITMENT TO US AND THEY DON'T HAVE THE CHECK AVAILABLE TO US, VERY LIKELY WE'LL BE COMING BACK TO THE WELL AND ASKING YOU FOR THE ISSUANCE OF ANOTHER BRIDGE LOAN OR LINE OF CREDIT.
BUT WE WILL DISCUSS THAT FURTHER DOWN AS THAT COMES UP.
THERE'S ALSO ABOUT CONTEMPLATED SALE OF ASSETS THAT THE CITY HAS.
WE'RE ESTIMATING VERY CONSERVATIVELY THAT THAT NUMBER COULD BE ABOUT $227 MILLION.
AGAIN, WE DON'T KNOW IN WHAT FORM THAT MONEY WILL COME IN.
THEREFORE, IF WE'RE READY TO SELL BONDS ON THE FOURTH QUARTER, AT THE SAME TIME THAT WE'RE SELLING THOSE BONDS, WE MAY HAVE TO HAVE SOME SORT OF A BRIDGE LOAN IN PLACE IN ORDER TO BE ABLE TO AWARD FOR THE PROJECT CONSTRUCTION.
AND WE'LL GET INTO THE TIMELINE IN A MINUTE ON THAT. THEN WE HAVE APPLIED JUST AS OF A WEEK OR TWO AGO FOR THE STATE INFRASTRUCTURE BANK LOAN OF ABOUT $160 MILLION. WE'LL BE WAITING FROM TECH START TO GIVE US THAT BLESSING ON OR ABOUT THE MONTH OF MAY.
WE WILL NOT DO THAT FINANCING, EVEN THOUGH WE WILL SECURE THE THE FUNDING FROM TEX-DOT UNTIL AFTER THE BOND SALE IN THE OPEN MARKETS OF THE BILLION NINE. WE DON'T WANT TO BE ANTICIPATING THAT ISSUANCE UNTIL WE HAVE EVERYTHING ELSE PRETTY MUCH LINED UP.
AFTER THAT YOU SEE CASH SURPLUSES AND CONSTRUCTION CONSTRUCTION FUND EXCESS PROCEEDS.
SO THINK ABOUT A PIE OUT THERE AND BONDS ARE ABOUT 6,567%.
ABOUT 500 MILLION TO 600 MILLION ARE ASSET SALES IN CARLG.
AND THEN THE REST IS CASH. AS WE SPEAK AS WE'RE PREPARING THIS THIS FINANCING PROGRAM, WE ARE COLLECTING THOSE REVENUES. I THINK WE'VE BEEN COLLECTING THEM.
JENNY'S IS ABOUT 20, 22 THEREABOUTS. AND AND THAT HAS ACCUMULATED TO ABOUT $245 MILLION BETWEEN NOW AND THE TIME THAT WE DO THIS FINANCING. WE ESTIMATE THAT YOU'LL BE COLLECTING AN ADDITIONAL 56 MILLION.
SO 245 AND 56 GETS YOU ABOUT $300 MILLION OF CASH THAT YOU WOULD HAVE OTHERWISE HAD TO HAVE BORROWED, OR FINDING ANOTHER SOURCE TO, TO FILL THAT GAP.
ALONG WITH THAT, WE HAVE BORROWED IN THE PAST THROUGH A 23 BOND NOTE FINANCING.
WE BORROWED ABOUT $170 MILLION, THEREABOUTS. THERE'S ABOUT 150, 5105 MILLION UNSPENT THAT IS THERE IN A CONSTRUCTION FUND ACCOUNT. WHEN WE DID THE BRIDGE LOAN, WE ACTUALLY TOOK OUT $1 BILLION.
WE TOOK ABOUT 170 TO PAY OFF THE NOTE AND LEFT THE CONSTRUCTION FUND ACCOUNT 105, IN ADDITION TO THE 105, WE HAVE $86 MILLION THAT BASICALLY HAS BEEN TRANSFERRED FROM YOUR OPERATING ACCOUNT IN THE CONVENTION CENTER OVER TO THE CONSTRUCTION FUND ACCOUNT.
SO ROSA MENTIONED EARLIER ABOUT SOME PRE-DEVELOPMENT COSTS AND SOME DESIGN COSTS.
SOME OF THOSE COSTS WERE PAID BY THAT CONSTRUCTION FUND ACCOUNT.
BUT THERE IS MONEY THERE ABOUT $85 MILLION OR ABOUTS.
SO WHEN YOU ADD THE 85 PLUS THE 105, YOU'RE ABOUT 191, 91.
MY COFA IN THIS PARTICULAR CASE, HILLTOP, STEVE JOHNSON, WHO YOU'VE SEEN IN THE PAST, WE HAVE WORKED WITH THEM VERY CLOSELY TO BE ABLE TO ASSESS AND CALCULATE WHAT THE INVESTMENT EARNINGS COULD POSSIBLY BE DURING CONSTRUCTION WHILE BOND PROCEEDS ARE BEING UNSPENT.
AND WE THINK THAT RIGHT NOW WE'RE ABOUT $32 MILLION.
WE'RE PUTTING 31 IN THERE AS A HEDGE. BUT BUT THAT'S HOW WE GET TO THE SOURCES OF FUNDING.
CARLOS, YOU WANT TO GET ON THE USES? SURE. SO ON THE.
[01:50:01]
YEAH, ON THE RIGHT SIDE, WHAT YOU HAVE ARE THE THE USES OF FUNDS.FIRST WAS THE GMP ONE THAT WAS BROUGHT TO YOUR ATTENTION LAST YEAR, AND THAT ENABLED ALL THE WORK TO CONTINUE OPERATIONS ON THE EASTERN SIDE OF LAMAR, INCLUDING ALL THE INSTALLATIONS THAT FIFA IS USING JUST NOW.
AND THEN START THE ENABLING WORKS, WHICH IS BASICALLY THE THE WORKS NEEDED PRIOR TO CONSTRUCTION.
THIS IS ALL THE SURVEYING, IT'S ALL THE UTILITY WORK.
IT'S ALL THE FOUNDATION WORK. WELL, I MEAN, ALL THE DEMOLITION WORK AND SITE PREP SO THAT YOU MOVE ON TO THE NEXT PHASE, WHICH IS THE GMP TWO. AND THAT INCLUDES FOUNDATIONS AND STEEL ORDERS, EVERYTHING HAVING TO DO WITH LONG LEAD ITEMS THAT HAVE TO BE ORDERED FOR THE FOR THE PROJECT, PLUS THE STAFFING FOR THE NEXT TWO YEARS FOR THE CONSTRUCTION MANAGER AND TEAM.
IT'S ANOTHER ABOUT $2 BILLION WORTH OF WORK. AND IT INVOLVES EVERYTHING FROM THE COMPLETION OF STRUCTURAL, MECHANICAL ELECTRICAL AND PLUMBING ALL THE LOADING DOCK WORK THE BUILDING ENVELOPE BUILDING COMPLETION, MECHANICAL COMPLETIONS, PERMANENT ELECTRICAL AND ENCLOSURE.
SO THOSE ARE THE GMPS TO COME THAT WILL BRING TO YOU LATER, BUT THAT'S BASICALLY THE USES OF FUNDS WITH THEIR CONTINGENCIES, INCLUDING TARIFFS UNCERTAINTY IN THE MARKET, AS NOAH SAID.
AND OF COURSE, THE FEE FOR THE MANAGER. OKAY.
THE IMPORTANT NOTE IS WE DIDN'T TAKE OUT DEBT TILL 2023.
WE STARTED THE PROCESS IN 2018 AND DIDN'T START ANY DEBT SERVICE UNTIL THEN.
AND SO THAT 4.718 OF THE 7% HOT IS COLLECTED THROUGH THIS PROCESS.
AND THEN WE HAVE FIVE DIFFERENT REVENUE SOURCES FOR THE CONVENTION CENTER THAT WE USE TO PUT IN A CONSTRUCTION FUND AFTER WE PAID OUR OPERATING EXPENSES. YOU CAN SEE THAT BREAKDOWN ON PAGE 16, WHICH SHOWS YOU WHAT THOSE REVENUE SOURCES ARE, PLUS THE 7% HOT AND HOW WE ARRIVE AT OUR CONSTRUCTION BUDGET EXCESS.
SO THE PAGE 17 SHOWS YOU JUST KIND OF HOW THE, THE EXPENDITURE OF FUNDS WENT, HOW WE STUCK WITHIN OUR BUDGET UNTIL 23 AND NOT UNTIL AFTER WE NOT UNTIL AFTER WE PASSED BREMER AND COLLECTED A YEAR WORTH OF FUNDS FROM THE PFC THAT WE TAKE OUT ANY DEBT SO WE WOULDN'T TOUCH TAXPAYER FUNDS.
AND THERE'S TWO SLIDES AFTER THAT WHICH DESCRIBE THE, WHAT THE PLEDGED REVENUE DEFINITIONS ARE AN EXPLANATION OF THE ADDITION OF HOT FUNDS ON, OF BREMER FUNDS ON PAGE 19, WHICH TOOK US FROM 13 TO 15% IN OUR COLLECTIONS. PAGE 20 IS A DEFINITION OF THE PROJECT FINANCING ZONE.
YOU'VE SEEN THAT BEFORE. JUST WANTED IN HERE FOR FOR YOU TO HAVE IT IN ONE LOCATION.
AND THEN THE THE MEAT OF THE PRESENTATION IS SLIDES 21 THROUGH 23, WHERE WE SHOW HOW WE GET TO SOME OF THE QUESTIONS ABOUT EXCESS FUNDS AND HOW WE'RE GOING TO DO THE SPREAD KNOWING.
YES. SO PAGE 21. WHAT WE DID, WE TOOK A LOOK BACK AS TO THE REVENUES THAT ARE BEING USED NOT ONLY FOR WORKING THE CONVENTION CENTER, BUT ALSO WHAT WE CAN COUNT ON TO BE ABLE TO PAY BACK THAT BIG LOAN OF 01,000,000,009.
THIS IS APART FROM VISIT DALLAS. WE WERE VERY WE WENT INTO YOUR AUDIT.
THE AUDIT KIND OF PUTS EVERYTHING INTO ONE BUCKET.
WE ACTUALLY EXTRAPOLATED WHAT HIS VISIT DALLAS AND ARTS AND CULTURE ACTIVITIES THAT RELY SPECIFICALLY ON THAT 2.2 AND CHANGE TAX RATE. AND THEN WE TOOK OUT THE 4.718, WHICH IS WHAT THE CONVENTION CENTER DOES.
SO HERE ON PAGE 21 YOU'LL SEE THAT IN 23, THE HOT 4.718 COLLECTED ABOUT 54 MILLION.
232 WE'RE FORECASTING IN 26 ABOUT $60 MILLION.
[01:55:09]
I THINK THE HIGHEST THAT THE CONVENTION CENTER IS SPENT IN A GIVEN YEAR WAS ABOUT $77 MILLION.SO RIGHT THERE, 60 MILLION IS BEING PAID BY THAT HOT.
THE ACTIVITIES GENERATED BY THE CONVENTION CENTER OPERATIONS IN 23 WERE ABOUT A SIX THIS YEAR.
IN 26, IT IS EXPECTED TO BE ABOUT $23 MILLION.
SO AS YOU CAN SEE, WE ARE PROJECTING AS WE ARE RAMPING DOWN THE CONVENTION CENTER, WE'RE BRINGING DOWN OPERATIONAL REVENUES, AND WE SUSPECT THAT THOSE REVENUES ARE GOING TO BE LESS AS WE ENTER INTO THE CONSTRUCTION OF THE PROJECT.
RIGHT ABOVE IT IS THE MIXED BEVERAGE TAX OF ABOUT 19,000,002 IN 26.
THE FORECAST BACK IN 23 WERE ABOUT 17,000,008.
NONE OF THAT MONEY GOES INTO THE ACTIVITIES OF THE CONVENTION CENTER.
THAT'S STRICTLY FOR THE BONDHOLDER. IT DOESN'T GO TO VISIT DALLAS OR GO TO ANYTHING, ANYBODY ELSE EXCEPT THE BONDHOLDER, SO THAT YOU HAVE 43,000,379. THE 20 AND 26 WERE FORECASTING FOR THAT REVENUE TO BE AT $49 MILLION.
AS YOU MOVE TO THE RIGHT, THAT NUMBER COULD BE AS HIGH IN 2030 AS $58 MILLION.
THIS IS ACCORDING TO THE HVS STUDY. SO THESE ARE NOT OUR NUMBERS.
WE HAVE SHARED THOSE NUMBERS WITH RATING AGENCIES AND INSURANCE COMPANIES IN NEW YORK.
AND PRETTY MUCH THEY, THEY'RE PRETTY COMFORTABLE WITH US WITH THOSE PROJECTIONS.
THEN THE NEW HUT, 2%, 80% OF THAT 2% IS WHAT GOES INTO THIS PROJECT.
SO BASICALLY, IN 23, YOU COLLECTED ABOUT 40 MILLION AND A QUARTER.
THAT NUMBER IS HOVERING AROUND 19 MILLION. 4 IN 26.
WE PROJECTED THAT NUMBER IS GOING TO GROW TO ABOUT $21 MILLION IN 2030 AND 2030.
I'M SORRY. SO AS YOU GET DOWN TO 2030, YOU SAY, WELL, I GOT $188 $8 MILLION.
HOW CAN I PAY 1,000,000,009 OVER 30 YEARS? HOW CAN I RUN MY ACTIVITY CENTER OR MY CONVENTION CENTER? SO OUR OBJECTIVE IS NOT ONLY TO COME BACK TO YOU WHEN ONE OF THESE DAYS, WITH ALSO USING SOME OF THE CASH THAT IS STILL THERE.
THE CONVENTION CENTER TODAY HAS ABOUT $69 MILLION, WE THINK, IN, IN FUND BALANCE.
WE NEED TO PROJECT FOR EXPENSE AND FOR FUND BALANCE.
THE NEXT PAGE 22 AND 2322 BASICALLY TALKS ABOUT WHAT THE SBA STUDY IS TELLING US.
ALL THIS REVENUE STREAMS, HOW THEY'RE COMING IN, HOW WE'RE GOING TO BE PAYING DEBT AND HOW AT THE VERY FAR RIGHT HAND COLUMN, YOU HAVE THIS AVAILABLE SURPLUS, THAT AVAILABLE SURPLUS IN THE EARLIER YEARS IS NOT AS SIGNIFICANT, BUT AS WE PROJECT THOSE REVENUE STREAMS TO GROW, THEY'RE GOING TO BE VERY SOLID NUMBERS.
THOSE NUMBERS WE THINK YOU CAN USE FOR THREE DIFFERENT PURPOSES.
ONE OF THEM COULD BE PAYOFF OF BONDS. WE'VE DONE ANOTHER IN OTHER CITIES WHERE YOU ARE SUCCESSFUL IN GENERATING EXCESS REVENUES, YOU PAY OFF BONDS. BUT MOST IMPORTANTLY, WE WANT TO KEEP INTACT IS YOUR OPERATING RESERVES AND YOU AND YOUR CAPITAL INFRASTRUCTURE RESERVES IN CASE SOME UNFORESEEN EVENT OCCURS TO THE TO THE FACILITY, AND YOU HAVE ACCESS TO THAT CASH BEFORE YOU PAY OFF BONDS EARLY.
BUT BUT THAT'S SOMETHING THAT WE CAN DEAL WITH DOWN THE ROAD.
FOR PURPOSES, FOR INTERNAL PURPOSES, WE TOOK THE CONSERVATIVE APPROACH.
NO MORE GROWTH RATE. AGENCIES DON'T WANT TO SEE THE GROWTH STUDY.
WHAT IS THE MAXIMUM THAT WE CAN TAKE ADVANTAGE OF A VERY CONSERVATIVE FASHION.
AND EVEN RUNNING THAT BILLION NINE WITH THOSE REVENUE STREAMS, WE'RE ABLE TO CALCULATE THAT THERE WILL BE SOME AVAILABLE SURPLUSES AFTER DOING THAT CONSERVATIVE MODEL. AND, AND THAT'S WHERE WE ARE WITH PAGE 23.
SO ON PAGE 24, WE HAVE THE CASH BALANCES, AND WE WORKED WITH NOEY AND STEVE TO END THE COMPTROLLER'S OFFICE TO MAKE SURE THAT WE WERE COMFORTABLE WITH THESE NUMBERS. AND SO YOU'LL SEE THIS KIND OF A SUMMARY OF WHAT WE'VE ALREADY TALKED ABOUT.
THE CAPITAL CONSTRUCTION FUND IS THE FUND THAT I TOLD YOU WE HAVE IN OUR DEPARTMENT, WHERE ALL OF THE EXCESS AFTER OPERATIONS GOES AND SETS IN THAT FUND. WE STARTED AT 246 MILLION. AND AT THAT POINT, THAT IS WHERE WE STARTED THE, THE ACTUAL
[02:00:10]
PLANNING PORTION OF THIS EXERCISE, WHICH INCLUDES THE PROJECT MANAGEMENT, ETC.FOR THE PROJECT, INCLUDING THE COMPLETION OF ALL THE PRE-DEVELOPMENT AND ACTIVITIES.
SO ALL THAT WE HAVE SPENT TO DATE FROM THIS FUND IS 160 MILLION.
SO WE HAVE NOT. THAT DOES NOT INCLUDE ANY DEBT.
THIS NUMBER IS WITHIN THE CONTEXT OF OUR ACTUAL BUDGET IN OUR DEPARTMENT.
AND SO THAT GROWS EVERY YEAR AS WE WORK THROUGH OUR BUDGET, WHATEVER EXCESS AND OVERAGE WE HAVE OVER AND ABOVE OUR OPERATIONS IS WHAT GOES INTO THIS FUND. AND WE BUILT THAT FUND WHEN WE CAME TO COUNCIL.
WE BUILT UP THE FUND WHEN WE CAME TO COUNCIL, WHEN WE FIRST STARTED THE PROJECT AFTER, AFTER WE WERE GIVEN COUNCIL APPROVAL TO MOVE FORWARD WITH THE MASTER PLAN AND SEEK TO FIGURE OUT HOW WE'RE GOING TO BUILD A NEW CONVENTION CENTER.
WE STOPPED PUTTING MONEY INTO THE CENTER EXCEPT FOR LIFE AND SAFETY REPAIRS.
SO IN THAT PERIOD, WE STOCKED UP THOSE FUNDS TO MAKE SURE WE KNEW WE WEREN'T GOING TO DO THAT.
$600 MILLION OF REPAIRS TO THE OLD BUILDING BASED ON COUNCIL APPROVAL.
AND SO WE STOCKED UP THE MONEY TO DO THE PREDEVELOPMENT ON THE ON THE CURRENT EXPANSION.
SO THAT IS HOW WE BUILT UP THAT FUND. THE FIRST REVENUE TRANCHE STARTED.
THAT SECOND COLUMN IS OR AND SECOND ROW IS WHERE WE.
IN 2023, AFTER THE PFC, THE PROJECT FINANCING ZONE WAS APPROVED AND HAD ABOUT A YEAR OF REVENUE ALREADY IN IT ARE FIRST, ABOUT 45 MILLION. AND AFTER BREMER WAS APPROVED IN NOVEMBER OF 22, THEN WE TOOK OUT A NOTE WITH A SMALL TRANCHE OF FUNDS FOR 170 70 MILLION.
THAT WAS. WE BROUGHT THAT TO COUNCIL AND WE SAID THAT THAT WOULD FUND THE ARCHITECTURE ENGINEERING DESIGN COMPONENT AND THE FIRST COMPONENTS OF THE CMARS. RIGHT. SO THAT'S WHAT THAT THOSE FUNDS WERE USED FOR.
WE'RE TRACKING IT AS WE SPEND. AND SO THE BALANCE IS, IS AS IT IS HERE ON THE SHEET.
AND THEN OUR OTHER REVENUE SOURCES, KNOWIT HAS ALREADY COVERED THOSE.
AND THEN THE 2% INCREASE IN BREMER. BOTH OF THESE ARE 30 YEAR NOTES.
ONE ENDS IN 2051, ONE ENDS IN 2054. OKAY. LET ME CLARIFY THAT THE 23 NOTES WERE ISSUED AS NOTES VERSUS BONDS, BECAUSE WHEN YOU SELL BONDS, YOU'RE REQUIRED TO HAVE WE'RE REQUIRED TO HAVE A STUDY IN FRONT OF IN FRONT OF THE INVESTOR.
WE DID THE NOTE NOT ONLY TO GET YOUR MONEY TO WORK WITH THE WITH THE PRE-DEVELOPMENT WORK, BUT ALSO TO AVOID HAVING TO LOSE THE ABILITY TO COLLECT THE PFC REVENUES THAT WERE ALREADY GIVEN THE AUTHORITY TO COLLECT.
SO WE MOVE VERY FAST. THE STAFF WAS EXTREMELY HELPFUL WITH US ON PUTTING THAT PROGRAM TOGETHER.
AND THANK YOU ALL FOR YOUR FOR YOUR SUPPORT ON THAT.
SO, OKAY. AND I JUST WANT TO GIVE CRAIG JUST A MOMENT TO GO THROUGH WHAT HE'S BOOKED.
THESE ARE THE PRE BOOKINGS, THE BOOKINGS THAT WE'VE DONE OF A BUILDING WE'VE NOT YET FINISHED.
SURE. THANK YOU SO MUCH. CRAIG DAVIS, PRESIDENT AND CEO OF.
WE HAVE 71 BOOKINGS WITH JUST OVER 1.34 MILLION ROOM NIGHTS.
WE INTEND TO. BY THE TIME WE OPEN UP THE CONVENTION CENTER AT IN 2029, HAVE ABOUT 4 MILLION ROOM NIGHTS ON THE BOOKS, AND THESE CONVENTIONS DO EXTEND UP INTO THE YEAR 2041.
SO WE HAVE SEVERAL OPPORTUNITIES THAT WE'RE STILL WORKING ON, BUT 71 CONVENTIONS WITH VERY LITTLE INFORMATION TO GIVE OUR CUSTOMERS UP TO THIS POINT IN TIME IS A VERY GOOD SIGN. AND I MAY SAY IF YOU'LL ALLOW ME THAT THE DESIGN THAT WE HAVE SHOWN OUR CUSTOMERS, THEY ARE IN LOVE WITH THIS BUILDING, THEY THINK IT'S GOING TO BE NEXT GENERATION.
SO THERE'S A LOT OF DEMAND AND A LOT OF EXCITEMENT ABOUT DALLAS.
THANKS, CRAIG. SLIDE 27. YOU ASK US ALL THE TIME, HAVE YOU SEEN THIS BEFORE?
[02:05:01]
AND TWO OF OUR PRESENTATIONS, THEY'VE NOT CHANGED.THESE ARE THE RISK FACTORS THAT WE KNOW THAT WE DEAL WITH.
WE'RE VERY TRANSPARENT ABOUT THAT. WE HAVE TO CONTINUE EXTERNAL STAKEHOLDER COORDINATION.
THAT'S YOUR INTERACTION WITH I-30 AND TXDOT AND OTHER AGENCIES.
ANY THIRD PARTY AGREEMENTS THAT THE CITY HAS WITH UNION PACIFIC RAILROAD, DART, ETC.
HAVE TO ALWAYS BE TAKEN INTO CONSIDERATION. EXCUSE ME, THERE'S REAL ESTATE EASEMENTS.
WE HAVE TAKEN CARE OF MOST OF THOSE, BUT THERE'S STILL A COUPLE OF THINGS WITH U.P.
THERE'S UNDERGROUND OBSTRUCTIONS THAT ONCE WE DO THE LIDAR, THAT SOME THINGS CAN'T BE PREDICTED.
WE DON'T KNOW THEY'RE THERE UNTIL YOU START LITTERING THE GROUND.
EXCUSE ME. AND THEN THERE'S YOU KNOW, OBVIOUSLY TARIFFS, THERE'S LABOR MARKET.
AND THEN THE FINANCIAL MARKETS THAT NELLY HAS TO DEAL WITH CONSISTENTLY ON 28.
CARLOS HAS GONE THROUGH THESE ALREADY AS HE DESCRIBED.
AND THEN IN OUR NEXT STEPS, WHAT WE'RE REALLY HERE TO TALK ABOUT IS WHAT WE'VE TALKED ABOUT AS WE BRIEFED, WE NEED TO EXTEND THE MATURITY DATE. FOR THE $1 BILLION LOAN THAT WE WERE APPROVED, THE CONSTRUCTION LOAN.
SO WE HAVE THE MOST UPDATED INFORMATION AS COMPARED TO MARKET FOR YOU ALL.
WE NEED TO CLOSE THE INFRASTRUCTURE BANK LOAN THAT WE SUBMITTED THAT WE RECENTLY BROUGHT TO CITY COUNCIL FOR APPROVAL TO SUBMIT, AND THEN WE NEED TO PREPARE FOR THE ISSUANCE OF LONG TERM FUNDING IN Q1 2027.
SO WITH THAT, WE ARE OPEN FOR QUESTIONS. ALL RIGHT.
THANK YOU. LOTS OF INFORMATION IN HERE. I'M JUST GOING TO THAT'S AN UNDERSTATEMENT ACTUALLY.
WE'LL START WITH DEPUTY MAYOR PRO TEM. THANK YOU VERY MUCH.
I HAVE A FEW QUESTIONS GOING BACK TO PAGE 13.
DEPUTY MAYOR, CAN I INTERRUPT YOU FOR ONE SECOND? I THINK THE CHAIR ASKED ME TO ASK OUR CITY ATTORNEY'S OFFICE WHAT QUESTIONS WOULD BE GERMANE, BECAUSE I THINK WE COULD GO ALL OVER THE PLACE.
AND HE ASKED ME TO ASK THAT QUESTION FIRST BEFORE WE LAUNCHED INTO OUR QUESTIONS.
HELLO. WILLOW SANCHEZ FROM THE CITY ATTORNEY'S OFFICE AND THE POSTING TODAY.
THE TOPIC IS THE FINANCE. OOPS, SORRY. IS THE FINANCING PLAN FOR THE CONVENTION CENTER SO GERMANE QUESTIONS WOULD RELATE TO THE FINANCING AND THE PLAN FOR FINANCING. THANK YOU. OKAY. THANK YOU FOR YOUR PATIENCE.
SURE. SO ON PAGE 13, AND I THINK YOU WENT BY THIS ON ASSET SALES, THAT'S $227 MILLION. CAN YOU TELL ME A LITTLE BIT MORE ABOUT THAT? WHAT ASSETS? SURE. IN THE CITY OF DALLAS PORTFOLIO THAT'S ASSIGNED TO THE CONVENTION CENTER, WE HAVE SEVERAL PARCELS OF LAND. AN EXAMPLE WOULD BE THE THE POTTERY.
I'M BLANKING ON THE NAME. THERE'S A PART AMIGO'S POTTERY.
WE OWN THE PROPERTY. WE LEASE THAT TO THEM AND SEVERAL ALONG RIVERFRONT.
IT'S NOT ANY PROPERTY THAT ABUTS IMMEDIATELY ABUTS THE CONVENTION CENTER.
RIGHT NOW, WE DO OWN OTHER LARGER ASSETS AS WELL, JACK.
YEAH. AND I'LL ADD WE'VE SHARED WITH THE COUNCIL BEFORE THAT THERE'S 30 ACRES, 21 ACRES OF DEVELOPABLE PROPERTY THAT BECOMES AVAILABLE FROM THE DEMO OF THE EXISTING FACILITY.
SO TAKING THAT INTO ACCOUNT WITH ALL THE OTHER PROPERTIES, WE BELIEVE WE HAVE THE OPPORTUNITY TO,
[02:10:01]
TO HAVE A SIGNIFICANT SOURCE OF FUNDS TO GO TOWARDS THE CONSTRUCTION.NO, HE MENTIONED AS HE WAS GOING THROUGH, OR MAYBE ROSA DID BECAUSE OF THE TIMING ON SOME OF THAT, IT MAY BE NECESSARY TO DO AN ADDITIONAL BRIDGE LOAN BECAUSE UNTIL WE SELL THAT PROPERTY, WE CAN'T USE IT TOWARDS THE CONSTRUCTION. SO WE MAY HAVE TO DO A BRIDGE LOAN THAT'S BACKED BY THOSE ASSETS OR SOME OTHER MEANS THAT WE WOULD WORK WITH.
OKAY. AND THEN YOU MENTIONED THE $245 MILLION PLUS ANOTHER 56 MILLION.
SO 300 MILLION OF CASH THAT WAS COLLECTED. WHERE WAS THAT COMING FROM? THAT IS COMING FROM YOUR FROM YOUR REVENUES, THE TRC AND THE BILL.
AND THAT'S LATER, I THINK IT'S ON PAGE ON 24.
YOU'LL SEE THE CACHE THAT'S THERE AND THOSE DIFFERENT BUCKETS.
OKAY. AND AND ON PAGE 24 IT DOESN'T LOOK LIKE.
THE IMPACT OF FIFA IS IN THESE 20, 26. WELL, MAYBE IT IS ON THE 2026 NUMBERS.
I SEE HOT DOES JUMP FROM 2025 AT 53 MILLION UP TO 60 MILLION, BUT SOME OTHER NUMBERS.
WELL, JUST JUST LET ME KNOW. I MEAN, IS THAT IS THAT PART OF THIS PROJECTION? SO IT'S NOT I THINK HE WAS VERY CONSERVATIVE.
WE WANTED TO WAIT UNTIL FIFA STARTED TO KIND OF CONFIRM THE MARKET IN TERMS ESPECIALLY WITH WHAT'S GOING ON GLOBALLY RIGHT NOW, TO CONCERN, YOU KNOW, TO BE CONSERVATIVE IN HOW WE PROJECT THE NUMBER OF BOOKINGS AT HOTELS.
AND I THINK THAT CRAIG CAN PROBABLY SPEAK TO THAT.
WE WORK IN CONCERT, IN CONCERT WITH THE HOTEL ASSOCIATION OF NORTH TEXAS AND THEN THE DOWNTOWN TOURIST PUBLIC IMPROVEMENT DISTRICT TO KIND OF PROJECT THAT USING SOME DATA FROM TOURISM ECONOMICS. AND SO IT'S A LITTLE CONSERVATIVE RIGHT NOW.
I DON'T KNOW THAT WE HAVE TO GO SUPER IN DEPTH ON THAT.
I HAD JUST SEEN AT THE UPDATE THAT 68% OF THE HOTEL ROOMS WERE STILL GOING TO BE IN DALLAS, SO THAT LOOKED LIKE QUITE AN IMPACT. SO IT SOUNDS LIKE REALLY RIGHT NOW WE DON'T KNOW, BUT THIS IS, THIS IS JUST, IT MAY INCLUDE IT, BUT IT'S SUPER CONSERVATIVE IS WHAT YOU'RE TELLING ME.
IT'S A WORK IN PROGRESS RIGHT NOW. YES. AND CONSERVATIVE.
OKAY. AND THEN MR. AGUILAR HAD REFERENCED THE, THE PROCESS OF COMPONENT ONE AND THE PROCUREMENT OF GETTING YOU KNOW, THE DESIGN TEAM, ARCHITECTS, ETC..
AND WHEN WHAT, WHAT IS THE TIMING? WHAT TIMING WOULD YOU EXPECT FOR CONSTRUCTION FOR PEOPLE TO HAVE OPPORTUNITIES TO BE A PART OF THIS? SO MAYBE THE BEST WAY TO GO ABOUT IT IS PAGE 28, ACTUALLY THAT WE REFERENCED YOU KNOW, TALKING ABOUT THE GM PIECE BECAUSE THAT'S WHERE THE BULK OF THE WORK COMES FROM.
26 IS REALLY FOCUSED ON COMPLETING DESIGN. AND THAT IS BOTH DESIGNED BY THE ARCHITECT GROUP AND ALSO BY SUPPLIERS TO GET FINAL CONSTRUCTION DOCUMENTS TO GO BUILD.
THAT'S COORDINATION BETWEEN OUR CONSTRUCTION MANAGER AND THE DESIGNERS AND THE SUPPLIERS.
SO THERE'S OPPORTUNITIES IN TERMS OF SERVICES.
AND THAT IN THIS YEAR WE'RE STARTING ALREADY WITH ENABLING WORKS.
AND THAT MEANS DEMOLITION AS YOU'RE SEEING HAPPENING.
THAT'S STARTING TO PROVIDE THESE OPPORTUNITIES TO LOCAL SMALL AND MEDIUM BUSINESSES.
SO THAT'S DEFINITELY THE FOCUS CURRENTLY SITE PREP WORK.
WE'VE HAD LOTS OF COMPANIES INVOLVED IN SURVEYING AND THESE KINDS OF ACTIVITIES THAT ARE PREPPING THE, THE FACILITY FOR WORK. BUT THEN AS WE PROGRESS INTO THE GMP, I'LL ACTUALLY TURN IT OVER TO DEWEY.
SO HE GIVES YOU A BETTER IDEA OF THAT PROGRESSION OPPORTUNITY.
THAT'S RIGHT. AND SO IT'S SOUNDING LIKE YOU KNOW, 27 I MEAN, ONCE THINGS HAVE BEEN DEMOED AND SITE IS PREPARED THAT 2027 SO MAYBE BEFORE THAT OPPORTUNITIES, I WOULD EVEN SAY. 26 SECOND HALF AND BEYOND.
OKAY, SO THEY NEED TO BE REGISTERED IN OUR AND WELL WITH WHO YOU'RE MANAGING THIS.
SO INSPIRE AND AND DO WE. YES THAT'S CORRECT.
[02:15:02]
ALL THE SUBCONTRACTORS ARE MANAGED ON THE CONSTRUCTION SIDE BY THE CONSTRUCTION MANAGER.I THINK SO THAT WE'RE ON RECORD. IF YOU GIVE US JUST A.
SURE. THANK YOU. DEWEY NEWTON WITH TRINITY ALLIANCE.
SO LAST APRIL OR MAY, THE COUNCIL APPROVED GMP ONE, AND THAT WAS FOR THE INTERNATIONAL BROADCASTING CENTER AND SOME OF THE PRE ENABLING, ENABLING WORK. AND THEN LAST MONTH THE COUNCIL APPROVED GMP TWO.
SO WITH THE APPROVAL OF THOSE, WE START ANOTHER SET OF MEETINGS.
SO IT GETS OUT IN THE COMMUNITY PRETTY FAST. WE TRY AND MATCH UP SOME LARGER FIRMS WITH SMALLER FIRMS. TRY AND WE'RE TRACKING THE WORK BETWEEN LOCAL DALLAS COUNTY, STATE OF TEXAS AND THEN OTHERS.
SO THE NEXT WAVE OF COMMUNITY MEETINGS STARTS IN LATE APRIL.
SO DO WE DIRECT PEOPLE TO TRINITY ALLIANCE? YES.
WE HOST THOSE. WE AT OUR OFFICES DOWNTOWN AND THERE.
I MEAN, WE GET 100 TO 200 PEOPLE AT MOST OF THOSE EVENTS.
OKAY. THANK YOU, CHAIR JOHNSON. NO, I MEAN, I DO WANT TO REQUEST I THINK I'VE DONE THIS BEFORE BECAUSE THERE ARE SOME QUESTIONS THAT I'VE ASKED PREVIOUSLY THAT I NEVER GOT UP. AND SO I WOULD LIKE TO HAVE A IN DEPTH CONVERSATION AND MEETING WITH MY OFFICE ONE ON ONE.
BECAUSE FOR ME, THE THE TIME FRAME DOES NOT ALLOW ALL THE THINGS THAT I NEED TO ASK AND ETC.
SO I NEED LIKE YOU DON'T HAVE TO SPEND PROBABLY LIKE HALF A DAY WITH ME ON GETTING ALL THIS STUFF DONE AND I NEED IT FROM LIKE THE BEGINNING, THE TIMELINE, SO I CAN UNDERSTAND THE FUNDING AND EVERYTHING THAT'S GOING ON BECAUSE I CAN TELL YOU I'M LISTENING, BUT THIS IS ALL FOR PRAYING FOR ME AND I DON'T CRAM.
I HAVE TO HAVE A VERY, VERY SPECIFIC WHEN I STUDY TO UNDERSTAND WHAT'S GOING ON, BECAUSE I READ A LOT OF IT AND I NEED TO MAKE SURE THAT WHILE I'M READING, I'M ALSO COMPREHENDING FROM THE BEGINNING OF THE TIME TO WHERE WE ARE NOW.
SO TIMELINES AND ETCETERA. SO IF I CAN GET THAT DONE, I THINK IT'LL HELP ME KIND OF CATCH UP TO WHERE MY COLLEAGUES HAVE ARE BECAUSE THEY WERE PROBABLY FROM THE BEGINNING AND I REQUESTED THAT THEY HAVEN'T BEEN DONE YET. SO PLEASE, LET'S GET THAT DONE.
I BELIEVE IT'S ON THE CALENDAR. YOUR YOUR OFFICE CALLED US LAST WEEK AND ASKED FOR LIKE A FIVE HOUR FRAME OF TIME, AND WE GAVE THEM A FEW DATES. THEY'RE VERIFYING THAT THEY WORK FOR YOU AND WE WERE GOING TO GO TO YOUR OFFICE IF.
THANK YOU SO MUCH. WELL, I'LL MAKE SURE WE GET THAT EXPEDITED IMMEDIATELY.
THANK YOU. YOU'RE VERY WELCOME. THAT'S A GREAT IDEA.
BY THE WAY. CHAIR GRACEY NOTHING. MR. COUNCIL MEMBER.
I KEEP CALLING YOU MR.. THANK YOU. I WOULD I WOULD ALSO LOVE TO HAVE A PERSONAL BRIEFING ON THIS AT SOME POINT BECAUSE IT IS, IT IS COMPLICATED. AND THERE'S A LOT OF MOVING PARTS, BUT LET ME ASK YOU JUST A COUPLE QUESTIONS TO BEGIN WITH.
THAT IS CORRECT. THAT'S THE ANTICIPATION. THAT IS CORRECT.
THE THE, THE PROJECTED COST FOR THE REVENUE BONDS IN TERMS OF OF INTEREST AND DEBT SERVICE.
HAVE YOU HAVE YOU ESTIMATED AN AMOUNT. YOU SAID IT WAS 50 BASIS POINTS OVER.
YEAH. ON PAGE 22 YOU'LL SEE THREE DIFFERENT LOANS ISSUED BY THE SAME PLACE.
SO A TIER ONE IS GOING TO HAVE A LOWER INTEREST RATE THAN A TIER TWO AND TIER THREE LOAN.
WE WILL PROVIDE YOU SEPARATELY IN WRITING WHAT THOSE HAVE BEEN ESTIMATED.
BUT I SUSPECT WE'RE SOMEWHERE BETWEEN 5 AND 3 QUARTERS TO TO 6% BECAUSE OF THE NATURE OF THE PLEDGE, THE NATURE OF THE MARKETS, THE NATURE OF THE RATING UNDERLINES.
BUT WE CAN PROVIDE YOU THROUGH IT. I DON'T I DON'T NEED AN EXACT DEAL, BUT.
SO YOU'RE ABOUT IN THE FIVE 5% RANGE, GIVE OR TAKE.
AND THIS IS A 30 YEAR BOND. THAT IS CORRECT. AND SO YOUR YOUR CONSTANT IS GOING TO BE WHAT, SEVEN, EIGHT, SOMETHING LIKE THAT. I'M SORRY.
[02:20:01]
WHAT'S YOUR CONSTANT YOUR PAYMENT CONSTANT. MY PAYMENT CONSTANT ON THE BOND.IT'S ROUGHLY EVERY TWO SEMIANNUAL. IT'S GOING TO BE ABOUT 8% GIVE OR TAKE.
SURE. ARE WE TALKING ABOUT TWO 200 MILLION. SO IF YOU GO TO PAGE 22.
YEAH. AND YOU COMBINE COLUMN H WITH COLUMN J AND COLUMN L.
I'M SORRY. WHICH ONES. LET'S GO. PAGE 20 2HJ AND L YES H, J AND L.
SO THAT'S 88 AND 17 IS ABOUT A105 AND 20 IS 125.
THAT'S YOUR PAYMENT. AND SO ONE GOOD THING ABOUT THAT PAGE THAT HE'S DIRECTED YOU TO ON PAGE 22 OR ON PAGE 23, THE REVENUE COMING IN IS LISTED ON THE LEFT SIDE OF THE PAGE.
AND THEN WITH THE THREE COLUMNS WITH THE RED SQUARE AROUND THEM, SHOWS THE EXPENSES FOR THE FIRST, SECOND AND THIRD TIER THAT MR. ANNASTAR JUST MENTIONED.
AND THEN IN THE FAR RIGHT COLUMN, COLUMN N IS THE SURPLUS FROM REVENUE AFTER WE PAY THE DEBT.
AND YOU'LL SEE THE DIFFERENCE ON PAGE 22 AND 23.
PAGE 22 ASSUMES THAT WE CONTINUE TO HAVE GROWTH IN THOSE PLEDGED REVENUES.
PAGE 23 ASSUMES THAT GROWTH STOPS IN 2030. AND WE STILL, EVEN WITH STOPPING THE GROWTH IN 2030, WE STILL HAVE MORE THAN ENOUGH FROM THE TWO PLEDGED REVENUES TO PAY THE DEBT SERVICE ON THE THREE TIERS OF LOANS.
AND WE STILL HAVE SURPLUS LEFT OVER IN COLUMN N.
BUT FROM A BOND RATING PERSPECTIVE, WE'RE NOT ABLE TO FACTOR IN THAT GROWTH.
THEY WANT US TO USE THE GROWTH THAT WE'VE ALREADY EXPERIENCED.
AND THEN OUR REVENUE THAT YOU'RE PROJECTING IS ABOUT $180 MILLION.
SO THAT'S THE NUMBERS, ALL THIS OTHER STUFF. I'M SORRY TO MAKE IT.
I'M VERY SIMPLE. NO, THAT THAT BOILS IT DOWN.
SO THAT'S THE DEAL. SO YOU'RE SAYING WE'RE WE'RE NET 60 PLUS OR MINUS.
OKAY. THE DELTA BETWEEN THE 180 AND THE 125 IS TO RUN THE CONVENTION CENTER.
THAT'S MY NEXT QUESTION. DOES THAT. SO WHAT IS THE.
THAT'S JUST THE DEBT SERVICE IS THE 125 BUT THEN THE OPERATING COST IS THE OTHER.
60. THAT'S RIGHT. AND THAT'S SORT OF THAT'S THE BREAK EVEN SO TO SPEAK, WE'RE TRYING TO DO BETWEEN NOW AND THE TIME THAT WE DO THE FINANCING, WE HOPE WE HAVE A BETTER IDEA WHAT MISS WILLIS POINTED OUT ABOUT FIFA.
WE'RE ALSO GOING TO HAVE AN EVENT CENTER. IT'S GOING TO BE CLOSED FOR ABOUT TWO YEARS. WE'RE HOPING THAT WE CONTINUE TO COLLECT SOME REVENUE SO THAT WE CAN ACTUALLY AUGMENT OUR CASH BALANCES SO THAT WHEN WE START THE OPERATIONS, WE HAVE ONE YEAR FULLY FUNDED RESERVE IN OPERATIONS SO THAT WE DON'T HAVE TO BE LOOKING AT WHAT DID WE MISS BETWEEN THE REVENUES THAT I'M COLLECTING AND WHAT I'M PAYING OUT IN DEBT TO RUN THE CONVENTION CENTER.
MR. STEWART. I DON'T WANT TO HIJACK THE CONVERSATION, BUT DO I HAVE A.
CAN I ASK A COUPLE MORE QUESTIONS? THANK YOU.
LET ME LET ME JUST ASK A COUPLE QUESTIONS BECAUSE YOU'RE ANSWERING MY QUESTIONS AND, AND I'M REALLY, YOU'RE HELPING ME OUT HERE. THE, THE THIS, THE, THE, THE $2 BILLION OF DEBT, THE $3 BILLION TOTAL COST OF THE, THAT WE'RE USING AS OUR DUE.
AND THE TWO, I'M SAYING IT'S 1.9, BUT LET'S JUST SAY 2 BILLION.
THAT DOES NOT INCLUDE ANY OF THE OTHER PROJECTS RELATED.
UNRELATED SPECIFICALLY TO THIS IS ONLY THE KAY BAILEY HUTCHISON DEAL.
THIS IS JUST COMPONENT ONE WE'RE JUST BRIEFING ON COMPONENT ONE RIGHT NOW.
I'M SORRY, THE THAT'S THE, THE CASH, THE 190, THE 191 THE CONSTRUCTION FUNDS EXCESS.
[02:25:04]
THAT'S MONEY THAT IS, IS NOT A DEPLETING NUMBER.IT'S IT'S A, IT'S REALLY CASH OR IS THAT A NUMBER THAT'S GOING TO BE CASH THAT IS THERE.
WE VERIFIED IT, BUT IT'S BUT IT'S NOT IT'S IT LOOKED LIKE IT HAD BEEN A, A CASH POT THAT WAS BEING SPENT ON OTHER THINGS AT THIS POINT. THAT'S THAT THERE'S NO EXPENDITURES OUT OF THOSE POTS ANYMORE.
EXCELLENT QUESTION. SO IN THE PAST, YOU HAVE HAD SURPLUSES IN YOUR CONVENTION CENTER ACTIVITIES.
THE STAFF HAS COME TO YOU AND SAID, HEY, CAN WE TRANSFER X AMOUNT OF DOLLARS INTO MY CONSTRUCTION FUND ACCOUNT? SO THEY TRANSFER. YOU HAVE TRANSFERRED MONIES FROM THE CONVENTION CENTER TO THE CONSTRUCTION FUND ACCOUNT.
FROM THERE. YOU SPEND FOR PRE-DEVELOPMENT COSTS, DESIGN COSTS.
AND THAT'S WHAT GREW DOWN FROM THE MONEY THAT WAS PUT INTO THAT CONSTRUCTION FUND ACCOUNT.
THE MONEY THAT IS SHARED TODAY IS ONLY GOING TO GROW, CONSIDERING THE FACT THAT YOU'RE GOING TO CONTINUE TO HAVE THE REVENUES OTHER THAN THE CONVENTION CENTER ACTIVITY REVENUES, YOU'RE STILL GOING TO HAVE YOUR HOT, YOU'RE STILL GOING TO HAVE YOUR MIXED BEVERAGE TAX.
SO WE THINK THAT BETWEEN 2 AND 3 AND TWO AND THREE YEARS, YOU COULD HAVE MORE MONEY THERE ACCUMULATED EITHER IN THE CONSTRUCTION FUND ACCOUNT OR IN THE OPERATING RESERVE OF THE CONVENTION CENTER.
WE DON'T KNOW THAT YET, BECAUSE YOU STILL HAVE TO DO SOME ADJUSTMENTS IN YOUR BUDGET FOR BUT TO BE CONSERVATIVE, LET'S ASSUME WE DON'T GET ANY MORE MONEY THAT THAT NUMBER, THAT'S THE NUMBER WE WANT TO WE DON'T WANT TO BE PLAYING.
WE DON'T WANT TO BE UP. WE DON'T WANT. LET'S.
JUST WEEKS AGO, I COULD NOT I COULD NOT GO TO SLEEP MYSELF WITH THAT SAME QUESTION.
OKAY. IS THERE WE CONFIRMED IT. SO THAT'S MONEY THAT THAT'S MOVING.
IT'S MONEY THAT'S COMING IN AND OUT. SO WE GOT TO FIGURE OUT IF WE WANT TO SEPARATE THAT OR RESTRICT THAT, OR SOMEHOW MAKE SURE THAT WE HAVE A CERTAIN BALANCE IN THAT ACCOUNT IN ORDER TO MAKE SURE THAT WE CAN USE IT AS SOME KIND OF A PROCESS.
MAYBE THE OTHER, THE OTHER THING ON THE, THE CASH, THE HOT COLLECTION AND THE CASH THAT ALSO IS STILL PROJECTED MONIES. IT'S NOT, THERE'S NO GUARANTEES ON ANY OF THESE MONIES.
AND I GET IT, BUT WE NEED TO REMEMBER THAT THIS IS TAXABLE.
THIS IS TAX REVENUES FROM HOTELS. AND OVER THE NEXT THREE YEARS WE MAY OR MAY NOT WEAR THIS.
THIS IS A CONSERVATIVE FLAT PROJECTION IS WHAT YOU'RE SUGGESTING TO US, EXCEPT FOR.
I DO WANT TO POINT OUT, IF I MAY, ON SLIDE 13, ON THE SOURCES OF FUND, THE CASH SURPLUS FROM HOT AND PFC COLLECTIONS, THAT $245 MILLION IS CASH THAT WE'VE ALREADY COLLECTED.
THE STATE COLLECTED. THE STATE SENT IT TO US.
IT'S IN OUR ACCOUNT. IT IS BECAUSE THAT WE IMPLEMENTED THE INCREASE IN THE HOTEL OCCUPANCY TAX UNDER BREMER AND ESTABLISHED THE PFC IN 22 AND 23. AND SO WE'VE GOT THREE, FOUR YEARS WORTH OF COLLECTION.
SO THAT CASH IS THERE PLEDGED TOWARDS THE PAYMENT OF THE DEBT.
THE 56 WAS EXTRA IS PROJECTED. YES. THAT'S WHAT.
AND SO THE 56 IS THE PROJECTION BECAUSE WE WILL CONTINUE TO COLLECT.
YES SIR. AND THEN THE OTHER THE LAST THING AND AGAIN, I'M I APOLOGIZE FOR ASKING SO MANY QUESTIONS, BUT THE 300 MILLION FROM THE COG, THAT'S SORT OF A THAT'S IN FLUX.
THAT'S NOT A GUARANTEE. IT'S IT'S AN APPLICATION.
MAYBE WE'LL GET IT. MAYBE WE WON'T. BUT IT'S SOMETHING THAT WE MAY NEED TO CREATE A BUDGET FOR AS A CONTINGENT BUDGET THAT THAT MIGHT NOT THOSE FUNDS MAY NOT BE AVAILABLE AT SOME POINT. IF THEY ARE. WE'RE LUCKY TO HAVE THEM, BUT WE CAN'T.
THIS IS NOT SORT OF SOLID MONEY YET. IS THAT IS THAT A FAIR STATEMENT? THAT IT IS CORRECT THAT WE ARE IN CONVERSATIONS WITH THE COG ABOUT THOSE DOLLARS? WE ARE STILL WORKING WITH THEM. ROSE'S TEAM IS WORKING WITH THEM TO GET CONFIRMATION OF AN ACTUAL COMMITMENT OF THAT.
LISTEN, WE HOPE WE GET IT. LET'S WE HOPE. DO WE GET IT? WE ARE WORKING VERY HARD. THERE'S A LOT OF TRANSPORTATION COMPONENTS AS PART OF THIS PROJECT.
I THINK IT'S FAIR TO SAY COUNCIL MEMBER RIGHT, THAT WE WON'T DO THE FIXED RATE FINANCING IN NOVEMBER OR DECEMBER AS ANTICIPATED, IF WE DON'T HAVE THOSE AGREEMENTS. YEAH. THAT'S FINE.
THANK YOU. THANK YOU FOR ALLOWING ME TO HIJACK THE MEETING A LITTLE BIT.
NO, YOU DID NOT. I THINK YOUR QUESTIONS WERE VERY HELPFUL TO THE REST OF US.
SO THANK YOU. COUNCIL MEMBER ROTH FOR THAT. I THINK MY QUESTIONS HAVE BEEN ANSWERED.
AND THEN AT THAT POINT, IF I UNDERSTAND, WE'LL HAVE A BETTER IDEA OF WHAT THE COST IS.
ARE WE CLOSE TO THAT OR WHERE, WHERE DO WE STAND ON THAT?
[02:30:02]
I'M GOING TO BRING TOM REISENBERGER UP FROM PERKINS AND WILL TO EXPLAIN AND THEN EXPLAIN HOW WE GO INTO CONSTRUCTION DOCKS, AND THEN FOR YOU TO EXPLAIN HOW WE WORK WITH THE COST.HI TOM REISENBACH WITH PERKINS AND WILL SAY THE FIRST THING WE'RE DOING IS WORKING WITH THESE GUYS DAILY IN TERMS OF MAKING SURE THE DESIGN AND THE CONSTRUCTION COSTS ARE BALANCED. IN TERMS OF WHERE WE'VE BEEN SINCE LAST MAY WHEN WE WERE PRESENTED, THERE'S BEEN SEVERAL I WILL SAY MANY IMPROVEMENTS IN THE BUILDING JUST TO KIND OF GIVE YOU AN IDEA OF WHAT THEY ARE IN. I'M GOING TO MAKE THESE HIGH LEVEL AND SHORT, BUT WE'VE DECREASED THE BUILDING VOLUME BY 16 CUBIC, 16,000,000 CUBIC FEET. WE HAVE INCREASED MULTIPLE AREAS OF THE BUILDING JUST BY IMPROVING THE EFFICIENCY, SUCH AS WE INCREASED THE NUMBER OF LOADING DOCKS FROM 38 TO 50 AT THE EXHIBIT HALL LEVEL.
WE'VE ADDED FOOD AND BEVERAGE STOCKS AT THE GROUND LEVEL TO SEPARATE THEM FROM THE EXHIBIT HALL LEVEL, WHICH HELPS WITH THE TURNOVER OF THE EXHIBIT HALL.
WE ARE CURRENTLY EVALUATING ADDING AN EXECUTIVE BOARDROOM IN THE IN THE MEETING ROOM LEVEL.
SO THAT IS BASICALLY FROM EFFICIENCY AND PLANNING AND DESIGN.
SOME OF THE THE WAYS WE'VE REDUCED THE COST OF THIS IS BY LOWERING THE BUILDING 16FT.
THAT'S WHERE WE TOOK THE 16,000,000 CUBIC FEET OUT OF THE BUILDING.
WE HAVE REMOVED A MEZZANINE LEVEL FROM THE BUILDING, WHICH WAS REALLY THERE TO HELP WITH THE ESCALATORS AND MOVEMENT OF PEOPLE THROUGH THE BUILDING, BUT BY LOWERING IT, WE MADE IT MORE EFFICIENT. AND THIS ACTUALLY CAME FROM SOME OF THE CUSTOMER FEEDBACK THAT WE GOT.
THEY WANTED TO HAVE VERTICAL CIRCULATION MORE EFFICIENT.
WE'VE REALIGNED THE LAMAR STREET. I'M SORRY, WE HAVE TAKEN OUT THE REALIGNMENT OF LAMAR STREET.
AT ONE POINT IT WAS MOVING THE STREET OVER A LITTLE BIT, AND NOW WE'VE TAKEN THAT OUT.
WE HAVE CHANGED THE VERTICAL EXPANSION TO BEING MORE HORIZONTAL EXPANSION IN THE FUTURE.
AND I COULD GO ON AND ON, BUT I DON'T KNOW HOW MANY OF THESE YOU WANT TO KNOW ABOUT.
BUT THERE'S BEEN I THINK THE MAIN POINT IS THAT WE ARE WORKING WITH THE CONSTRUCTION COMPANY AND ROSA'S TEAM TO FIND THE EFFICIENCIES IN THE BUILDING TO MAINTAIN THE BUDGET, RATHER THAN FINDING WAYS TO EXPAND IT OR CUT IT.
SHE WANTS TO KNOW WHERE WE ARE ABOUT DESIGN DEVELOPMENT.
ARPA FUNDS. OH, WE ACTUALLY. SO. OKAY, SORRY IF I MISSED THAT QUESTION EXACTLY, BUT WE ARE IN HALFWAY THROUGH DESIGN DEVELOPMENT RIGHT NOW, AND WE'VE ACTUALLY ISSUED CONSTRUCTION DOCUMENTS ON SOME PARTS OF THE BUILDING.
SO WE HAVE SUBMITTED FOR SOME OF THE PERMITS NOW TO GET THAT PERMITTING IN LINE SO WE CAN ISSUE PHASE DOCUMENTS, BUT WE WILL BE FULLY INTO COME INTO CONSTRUCTION DOCUMENTS IN MAY AT THE END OF MAY.
AND THAT'S WHEN WE HAVE A BETTER IDEA ABOUT COST.
CORRECT? YEAH. WE'LL HAVE AT THE END OF MAY, PROBABLY THE END OF AUGUST.
WE'LL HAVE A VERY GOOD IDEA OF THE COST. RIGHT NOW WE HAVE A PRETTY GOOD IDEA OF THE COST.
SO IN THE BACK OF MY CAR, I CARRY A GIANT ERASER.
SO WHENEVER TOM DRAWS SOMETHING, I JUST ERASE IT, BACK OFF THE PLANS.
BUT THE WE ARE PUBLISHING THE NEXT ESTIMATE THIS FRIDAY.
IT'S A LITTLE OVER 3 BILLION AND OUR TARGET IS AROUND 3 BILLION.
SO FOR THIS STAGE OF THE JOB, I, I'D SAY THAT'S VERY GOOD.
THAT COUPLED WITH GNP ONE IS THE FIRST BILLION OF THE JOB AND THAT BILLION HAS BEEN BOUGHT, BID AND BOUGHT OUT IN THE MARKET. AND IT'S RIGHT ON TOP OF WHERE OUR ESTIMATE WAS.
SO A THIRD OF THE JOB HAS BEEN OUT TO MARKET AND COME IN AT THE NUMBERS.
THE SITUATION IN IRAN IS A LITTLE TRICKY. COPPER'S GOING UP AGAINST.
SO WE'RE REALLY WATCHING THE M, E, P AND THE WIRING AND THE PLUMBING, THE METALS PART OF THE JOB.
BUT WE'VE GOT, AS ROSA SAID, WE HAVE SOME CONTINGENCIES AND SOME TARIFF FUNDS.
WE'RE WE'RE GOING TO USE TO HOPEFULLY OFFSET THAT.
[02:35:04]
BUT THIS FRIDAY I THINK EVERYBODY WILL BE HAPPY WITH GENERALLY WHERE THE NUMBERS COMING IN.AND WE ALWAYS HAVE WORK TO DO THERE TO, YOU KNOW, KEEP IT IN CHECK.
BUT THERE'S NO MAJOR RED FLAGS THAT I SEE IN THE NUMBER RIGHT NOW.
HE HAS A GENTLE ERASER, A GENTLE ERASER, A LARGE BUT GENTLE ERASER.
SO IT'S TELLING US THAT WE'RE PROJECTING ACCURATELY.
SO FAR, SO GOOD. YEAH. OKAY. ALL RIGHT. ANY OTHER QUESTIONS COME UP? COUNCIL MEMBER, JUST A QUESTION. IS THE IS THE CITY OUR CITY BOND RATING? IS THAT SOMETHING THAT THAT WE'RE, WE'RE IN PRETTY GOOD SHAPE WITH THAT.
WE'VE GOT A PRETTY GOOD ABILITY TO GO TO THE MARKET AND, AND SORT OF HAVE AN EFFECTIVE FINANCING.
THAT'S A GOOD QUESTION. COUNCILMAN. THERE ARE 6 OR 7 DIFFERENT CREDITS.
THIS IS ONE OF THE MANY CREDITS THE CITY'S UNDERWRITING ON THE GEO SIDE WILL NOT BE AFFECTED AT ALL.
WE'RE NOT PLEDGING GENERAL FUND APPROPRIATIONS.
WE'RE NOT PLEDGING INS, TAXES, ANYTHING LIKE THAT.
UTILITIES TOTALLY. APART FROM THIS, THIS IS A A SELF-SUSTAINING CREDIT.
THE INVESTOR, THE PURCHASER OF THE BONDS, THE PEOPLE GOING TO BE LENDING YOU THE MONEY ARE GOING TO BE LENDING YOU THE MONEY STRICTLY ON THE, ON THE FLOWS OF REVENUES AND ACTIVITIES GENERATED BY, BY THE CONVENTION CENTER AND SO ON THESE PARTICULAR BONDS, WE WOULD BE SEEKING A, A RATING PROBABLY IN OCTOBER OR SO.
AND THEN IN ADDITION TO THAT, WE'RE GOING TO HAVE PROBABLY A, A BIG BOY, AN INSURANCE COMPANY THAT WILL ENHANCE THE CREDIT QUALITY. SO LET'S SAY THAT THIS CREDIT GOES OUT WITH AN A3 OR A MINUS.
IF WE GET INSURANCE AND WE HAVE THE INSURANCE HERE AT THE CITY MANAGER'S OFFICE BACK IN JANUARY, JANUARY I TALKED TO THEM A COUPLE OF WEEKS AGO.
THEY, THEY'RE REALLY EXCITED ABOUT THE PROJECT. IF WE GET THEM, THEN INSTEAD OF PRICING, GETTING AN INTEREST RATE AT AN 83 LEVEL, WE MAY GET IT AT DOUBLE A THREE LEVEL. SO WE'RE EXCITED ABOUT THAT.
OKAY, CHAIR, WES DID WANT ME TO MAKE THE POINT THAT I THINK IT HAS BEEN MADE A COUPLE OF TIMES THIS AFTERNOON THAT WE DID NOT TAKE ON ANY DEBT UNTIL 2023, AND THAT YOUR CAPITAL AND OPERATIONAL BUDGET PRIOR TO THAT WAS FUNDED THROUGH OTHER SOURCES, NOT THROUGH DEBT. AND IT WASN'T UNTIL AFTER THE PFC AND BREMER WERE APPROVED THAT WE THEN BEGAN TO TAKE ON DEBT.
YOU'RE NODDING YOUR HEADS AS. THAT'S CORRECT.
AND EVERYBODY ACROSS THE BOARD. OKAY. I JUST PROMISED HIM I WOULD MAKE HIS COMMENTS AND WE WOULD MAKE MAKE THAT VERY, VERY CLEAR. SO I JUST WANT TO ADD A THANK YOU.
AND I JUST WANT TO SAY HOW MUCH ALL OF US APPRECIATE THAT.
WE APPRECIATE YOUR ATTENTION TO THE DETAILS, AND THAT'S GOING TO MAKE THIS A MUCH BETTER PROJECT OVERALL BECAUSE OF THE DETAIL THAT YOU'RE WILLING TO GET INTO. AND THANK YOU FOR YOUR TIME AND EXPLAINING ALL THAT TO US.
AND IT WON'T BE THE LAST TIME THAT YOU WILL EXPLAIN ALL OF THAT TO US.
SO WITH THAT, CAN I MAKE ONE FINAL STATEMENT, PLEASE? SO I JUST WANTED TO POINT TO THE NEXT STEPS ON SLIDE 30.
SO YOU WILL REMEMBER THAT LAST SPRING, MAY OR JUNE, WE THE COUNCIL APPROVED THE $1 BILLION BRIDGE LOAN, AND THAT WAS THROUGH JUNE 30TH OF THIS YEAR BECAUSE WE ANTICIPATED ISSUING THE REVENUE BONDS LATE THIS SPRING OR EARLY SUMMER.
AND THEN WE WOULD ISSUE THE REVENUE BONDS IN THE FALL.
THANK YOU, MR. ALLEN. THAT'S VERY HELPFUL. ANY QUESTIONS ON THAT? NO. ALL RIGHT. ALL RIGHT. WELL, THANK YOU SO MUCH FOR THE PRESENTATION.
[02:40:01]
AND I BELIEVE AT THIS POINT WE ARE READY TO ADJOURN THE MEETING AT 342.